Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chongqing Jianshe Motorcycle Co., Ltd.
Annual Report 2014
2015-010
April 2015
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter I. Important Prompts, Table of Contents, and Definitions The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
All directors presented the Board Meeting at which this report was examined:
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the report period.
Mr. Li Huaguang, the Legal Representative of the Company, Mr. Teng Feng, the Financial Officer, Mr. Liao Jian, the manager of accounting department, hereby declare: the truthfulness and completeness of the Financial Report are guaranteed.
Prospective statements carried in this report, such as business plans for future are not constituting any substantial commitment to the investors. Please be cautious to the risks.
This report is prepared both in English and Chinese. When there is any conflict in understanding, the Chinese version shall prevail.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions .......................................................................................................... 2 Chapter II. Company Profile ................................................................................................................................................................... 6 Chapter III. Financial Highlights ............................................................................................................................................................. 8 Chapter IV. Board ofDirectors‘ Report ................................................................................................................................................. 10 Chapter V. Significant Events ............................................................................................................................................................. 25 Chapter VI. Change of Share Equity and Shareholders ......................................................................................................................... 34 Chapter VII. Particulars about Preference Shares .................................................................................................................................. 39 Chapter VIII. Directors, Supervisors, Senior Executives and Employees ............................................................................................. 40 Chapter IX. Administration ................................................................................................................................................................... 47 Chapter X. Internal Control ................................................................................................................................................................... 52 Chapter XI. Financial Report ................................................................................................................................................................. 54 Section XII. Documents for Reference .................................................................................................................................................. 86
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Glossary
||||
|-|-|-|
|Terms|Defined as|Description|
|Company, the Company|Defined as|Chongqing Jianshe Motorcycle Co., Ltd.|
|Shenjianmo|Defined as|Shenzhen North Jianshe Motorcycle Co., Ltd. (predecessor of the Company)|
|Military Equipment Group|Defined as|China Military Equipment Group Co., Ltd. (China Southern Industry Group Co., Ltd.)|
|Southern Group|Defined as|China Southern Industry Group Co., Ltd.|
|Military Finance Co.|Defined as|Military Equipment Group Finance Co., Ltd.|
|Southern Motorcycle|Defined as|Chongqing Southern Motorcycle Co., Ltd.|
|Southern Motorcycle R&D|||
||Defined as|Chongqing Southern Motorcycle Technologies Development Co., Ltd.|
|Co., Ltd.|||
|||Chongqing Jianshe Industry Co., Ltd. – former State-owned Jianshe Machinery Factory,|
|Jianshe Industry|Defined as||
|||Jianshe Industry (Group) Co., Ltd.|
|Jianshe Group|Defined as|Jianshe Industrial (Group) Co., Ltd.|
|Jianshe Machinery|Defined as|Chongqing Jianshe Machinery Co., Ltd.|
|China Jialin|Defined as|China Jialin Industry Co., Ltd. (Group)|
|Jinan Qingqi|Defined as|Jinan Qingqi Motorcycle Co., Ltd.|
|Changan Auto|Defined as|Chongqing Changan Automobile Co., Ltd.|
|Luoyang Northern|Defined as|Luoyang Northern Enterprise Group Co., Ltd.|
|Sales Co.|Defined as|Chongqing Jianshe Sales Co., Ltd.|
|Vehicle air conditioner|Defined as|Chognqing Jianshe Automobile Air-conditioner Co., Ltd.|
|Import & Export Co.|Defined as|Chongqing Northern Jianshe Import & Export Co., Ltd.|
|Shanghai Jianshe|Defined as|Shanghai Jianshe Motorcycle Co., Ltd.|
|经销公司|Defined as|Chongqing Jianshe Motorcycle Sales Co., Ltd.|
|Chongqing Yamaha|Defined as|Chongqing Jianshe YAMAHA Motorcycle Co., Ltd.|
|Zhuzhou Jianya|Defined as|Zhuzhou Jianshe YAMAHA Motorcycle Co., Ltd.|
|Pingshan Taikai|Defined as|Chongqing Pingshan Taikai Carburetor Co., Ltd.|
|Jianxing Machinery|Defined as|Chongqing Jianxing Machinery Co., Ltd.|
|Tongsheng Construction|Defined as|Chongqing Tongsheng Jianshe Industry Co., Ltd.|
|Jianshe Industry & Trading|Defined as|Chongqing Jianshe Industry & Trade Co., Ltd.|
|Fuyeda|Defined as|Chongqing Fuda Property Management Co., Ltd.|
|Jiangmen Qingqi|Defined as|Jiangmen Qingqi South China Motorcycle Co., Ltd.|
|Changan SUZUKI|Defined as|Chongqing Chang‘an SUZUKI Automobile Co., Ltd.|
|Changhe SUZUKI|Defined as|Jiangxi Changhe SUZUKI Automobile Co., Ltd.|
|Hebei Changan|Defined as|Hebei Changan Automobile Co., Ltd.|
|Nanjing Changan|Defined as|Nanjing Changan Auto Co., Ltd.|

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Prompt of Risks
Risk factors in business operation were described in detail in this report. Please refer to the report of the Board regarding risks in future development.
Business plans or description of targets in the report do not constitute profitability forecast on year 2015. Achieving of these plans or targets are dependent on the market and effort of theCompany‘s operation team, and with great uncertainty.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter II. Company Profile
I. Basic Information
|||||
|-|-|-|-|
|Stock ID|Jianmo B|Stock Code|200054|
|Stock Exchange Listed in|Shenzhen Stock Exchange|||
|Company Name in Chinese|重庆建设摩托车股份有限公司|||
|Short form of Company Name in Chinese|Jianshe Motorcycle|||
|Company Name in English|CHONGQING JIANSHE MOTORCYCLE CO.,LTD.|||
|Short form of Company Name in English|JSMC-B|||
|Legal representative:|Li Huaguang|||
|Reg. Add.|No.1 Jianshe Road, Huaxi Industrial Zone, Ba‘nan District, Chongqing|||
|Post Code|400054|||
|Office address|No.1 Jianshe Road, Huaxi Industrial Zone, Ba‘nan District, Chongqing|||
|Post Code:|400054|||
|Web Address|http://www.jianshe.com.cn|||
|Email.|cqjsmc@jianshe.com.cn|||

II. Contacts
||||
|-|-|-|
||Secretary of the Board|Representative of Stock Affairs|
|Name|Teng Feng|Liu Hongyu|
||No.1 Jianshe Road, Huaxi Industrial Zone, Ba‘nan District,|No.1 Jianshe Road, Huaxi Industrial Zone, Ba‘nan District,|
|Address|||
||Chongqing|Chongqing|
|Tel.|023-66295333|023-66295333|
|Fax.|023-66295333|023-66295333|
|Email.|cqjsmc@jianshe.com.cn|cqjsmc@jianshe.com.cn|

III. Place for information disclosure
|||
|-|-|
|Press media for information disclosure|Securities Times, Hong Kong Commercial Daily|
|Web address for the annual report as assigned by CSRC.|http://www.cninfo.com.cn|
|Place for inquiry of the annual report|Secretary office of the Board|

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text IV. Change of Business Registration
|||||||
|-|-|-|-|-|-|
||Registration||No. of Incorporation|No. of Taxation||
|||Registration place|||Organization code|
||date||Certificate|Registration||
|Primary|July 19,|Shenzhen Bureau of||||
||||19235960-7|440301520100102|19235960-7|
|registration|1995|Commerce and Industry||||
|Last||||||
|registration||||||
||February 21,|Chongqing Bureau of||||
|before the end|||500000400001350|500113747482423|74748242-3|
||2014|Commerce and Industry||||
|of report||||||
|period||||||
|||1. The Company was originally promoted by Jianshe Group and China Northern Industry Shenzhen||||
|||Co., Ltd. and was incorporated as a limited company, in which Jianshe Group held 71.13% of the||||
|||shares as the holding shareholder.||||
|Change of holding||2. Southern Group and Jianshe Group entered the Share Transferring Agreement and the||||
|shareholder (if any)||Supplementary Agreement respectively on December 3, 2004 and January 22, 2005. According to the||||
|||agreements, Southern Group took over all of the 339,625,000 state-owned shares originally held by||||
|||Jianshe Group, accounted for 71.13% of the total capital shares. Legal procedures were completed on||||
|||August 31, 2005, and Jianshe Group became the holding shareholder of the Company.||||

V. Miscellaneous information
CPA hired by the Company
|||
|-|-|
|Name of the CPA|BDO China Shu Lun Pan Certified Public Accountants LLP|
|Address of the CPA|Address: 4/F 61 Nanjing Rd. East, Huangpu, Shanghai|
|Name of CPA signed on the||
||Liu Jinjin, Wan Ping|
|auditors‘ report||

Sponsoring institution hired by the Company, which is responsible to overseeing theCompany‘s operation on a continuous basis:[] Applicable;[V] Not applicable
Financial consultancy institution hired by the Company, which is responsible to overseeing theCompany‘s operation on a continuous basis:
[] Applicable;[V] Not applicable
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter III. Financial Highlights
I. Main accounting data and indices
Are there any retrospective adjustment or restatement of financial information of previous year due to change of accounting policies or correcting of accounting errors?
[] Yes[V] No
||||||
|-|-|-|-|-|
||||Increase / Decrease||
||2014|2013||2012|
||||over the previous year||
|Turnover (RMB)|1,763,619,804.97|1,885,831,544.85|-6.93%|1,823,400,359.85|
|Net profit attributable to shareholders of the listed|-133,593,949.98|11,589,364.53|||
||||-1,252.73%|-143,723,842.47|
|company (yuan)|||||
|Net profit attributable to the shareholders of the listed|||||
|company and after deducting of non-recurring|-153,898,341.02|-99,416,477.62|-54.80%|-146,814,795.90|
|gain/loss(RMB)|||||
|Net Cash flow generated by business operation|94,598,651.91|162,848,662.04|||
||||-41.91%|90,320,926.95|
|(RMB)|||||
|Basic earnings per share (Yuan/share)|-1.119|0.097|-1,253.61%|-1.204|
|Diluted earnings per share (Yuan/share)|-1.119|0.097|-1,253.61%|-1.204|
|Net income on asset, weighted|-158.82%|7.83%|-166.65%|-67.01%|
||||Changed over end of||
||End of 2014|End of 2013||End of 2012|
||||last year||
|Gross Assets (RMB)|2,389,211,010.43|2,761,080,427.99|-13.47%|2,910,101,919.15|
|Net asset attributable to owners of the PLC|17,321,196.61|150,915,146.59|-88.52%|142,442,251.09|

 II. Differences in accounting information under IAS and domestic accounting standard 1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard
No difference between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard for the report period.
2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard
No difference between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard for
the report period.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text III. Non-recurring gain/loss items and amounts
In RMB Yuan
||||||
|-|-|-|-|-|
||Amount of|Amount of|Amount of||
|Items||||Remarks|
||2014|2013|2012||
|Gain/loss from disposal of non-current assets (includes the recovered part of|-328,218.08||||
|||59,607,568.30|-138,436.95||
|asset impairment provision already provided)|||||
|Gains and losses included in the current period of government subsidies,|2,875,800.00||||
|excluding those government grants which are closely related to normal|||||
|||49,942,210.00|3,306,520.00||
|business and in line with national policy , or in accordance with fixed|||||
|standards or quantities|||||
|Other non-business income and expenditures other than the above|17,756,677.38|1,450,995.27|263,848.97||
|Less: Influenced amount of income tax||-2,052.06|333,740.88||
|Influence on minority shareholders‘ equity (after tax)|-131.74|-3,016.52|7,237.71||
|Total|20,304,391.04|111,005,842.15|3,090,953.43|--|

 None of non-recurring gain/loss items recognized as recurring gain/loss items as defined by the Information Disclosure Explanatory Announcement No.1– Non-recurring gain/loss in the report period.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter IV. Board ofDirectors’ Report
I. Business overview
The whole motorcycle industry of the country was going downhill continuously in 2014, and competition was intense in the auto part market too. The Company achieved some progress in upgrading its business operation and refining of the motorcycle business. Automobile air-conditioner business and co-operative businesses were in steady growth.
As for the motorcycle business, the Company was turning its direction to high-performance and high-value-adding models. Management structure was refined to better service its business purpose. Current asset was further utilized to expand auto part business, and resources were rearranged to increase efficiency along with the joint ventures.
In the aspect of automobile air-conditioner business, the Company accelerated strategic cooperation with large clients. Enlarging of investment on fixed assets was lifting up the productivity and testing abilities to satisfy growing demands of high-end markets.
As for co-operations and joint ventures, the four projects including C48 were put into full operation, C50 project was launched, and OEM product lines were enriched. Basing on the co-operation of OEM, the Company achieved breakthrough in ODM co-operations with YAMAHA on F33 (ATV engine) project.
In the year, the Company suffered from continuous depression of the market, and the growth of air-conditioner business is not sufficient to offset the loss in motorcycle business. Generally the main business turnover declined and the consolidated net profit is a negative figure.
II. Analysis of main business
1. Summary
Retrospection on progress of the development strategies and business plan disclosed in previous period.
The development strategy of the Company was not changed in the report period. Sales of motorcycles (including engines) was scheduled for over 300 thousand units, and actually it was 321 thousand. Sales of automobile air-conditioner compressor was scheduled of 1.8 million units while actually 1.81 million sold out. Consolidated turnover of RMB1.76 billion, which was93.1% of the annual target.
Statements on the difference between the actual performance and the projected profitability if it is over20%.[] Applicable;[V] Not applicable
Change of main business operation pattern
[] Applicable;[V] Not applicable
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text 2. Revenue
In the report period, the Company and its affiliates achieved sales of 915 thousand units and 923 thousand units, decreasing of12.7% and12.5% YoY respectively. The headquarter achieved production of 313 thousand units and sales of 321 thousand units, decreasing of23.4% and22.5% respectively. Production of automobile air-conditioner of 1.86 million and sales of 1.81 million units, increase of8.1% and11.7% respectively. Both production and sales are among the top 3 of the industry in the country (Source: China Automobile Industry Association).
Main business turnover of the year was RMB1.696 billion, an decrease of6.15% YoY.
As under the impact of sales decline, turnover of motorcycle business has decreased by16.84% to RMB969 million, accounted of57.11% of the total main business turnover, an decrease of7% in term of proportion. On the other side, benefited from positive market position and industrial adjustment, automobile air-conditioner compressor has achieved turnover of RMB727 million, an increase of13.25%, accounted of42.89% of main business turnover of the year, which was an increase of7% structural.
As for sales, the domestic turnover was RMB1.471 billion, account for86.74% of total turnover; the overseas sales was RMB225 million, account for13.27% of total turnover. Both not changed significantly from last year. As for customer composition, turnover from top 5 customers, namely Chongqing Jianya, Changan Group, Great Wall Group, Shenlong Auto and Dongfeng Auto, was RMB892 million, account for50.60% of total sales. It was an increase of7.76% from last year. Among them, sales to Chongqing Jianya decreased by RMB13.09 million, sales to Changan Group increased by RMB75.26 million, and sales to Great Wall Group decreased by RMB27.13 million.
Among the sales to top 5 customers, there were RMB597 million of related transactions, accounted for66.92% of the total sales to top 5 customers.
Whether the sales of products are greater than sales of services?
[V]Yes[] No
|||||||
|-|-|-|-|-|-|
||||||Change over same|
|Business categories|Items|Unit|2014|2013||
||||||period last year|
||Sales|set|923,315|1,055,457|-12.52%|
||Output|set|915,462|1,048,449|-12.68%|
|Motorcycle||||||
||Inventory|set|25,627|33,536|-23.58%|
||Market share|--|4.34%|4.60%|-5.65%|
||Sales|set|1,810,588|1,620,682|11.72%|
|Compressor for||||||
||Output|set|1,860,020|1,720,322|8.12%|
|vehicle air||||||
||Inventory|set|307,274|258,619|18.81%|
|conditioner||||||
||Market share|--|10.00%|10.00%|0.00%|

Statement on change of amounts for over30% YoY.
[] Applicable;[V] Not applicable
Major orders in hand.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text[] Applicable;[V] Not applicable
Major change or adjustment in products or services.
[] Applicable;[V] Not applicable
Major buyers of theCompany‘s products or services
|||
|-|-|
|Sales to top 5 customers (RMB)|892,470,382.21|
|Share of sales to top 5 clients in the total sales of year|50.60 %|

 Profiles of top 5 customers
|||||
|-|-|-|-|
|No.|Name of clients|Sales (RMB)|Percentage in total sales of year|
|1|Chongqing Yamaha|343,643,530.80|19.49 %|
|2|Changan Automobile Group|253,633,244.88|14.38%|
|3|Greatwall Automobile Group|181,755,429.80|10.31%|
|4|Shenlong Automobile Co., Ltd.|75,004,728.18|4.25%|
|5|Dongfeng Automobile|38,433,448.55|2.18%|
|Total|--|892,470,382.21|50.60 %|

 Amongst the top 5 clients, Changan Automobile Group is a related party with Chongqing Jianshe Yamaha. Chongqing Jianshe Yamaha is a joint venture in which the Company is holding50% of shares. Changan Automobile and the Company are under common control of China Southern Group.
3. Costs
Business segments
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||2014||2013|||
|Business||||||Change over same period|
||Items||Share in operational||Share in operational||
|categories||Amount||Amount||last year|
||||costs||costs||
|Industry|Industry|1,501,878,617.61|96.89%|1,565,769,102.55|96.55%|-4.08%|

 Categories of products
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||2014||2013|||
|||||||Change over same|
|Categories of products|Items||Share in||Share in||
|||Amount||Amount||period last year|
||||operational costs||operational costs||
|Motorcycle and parts|Industry|902,888,238.86|60.12%|1,062,530,685.00|67.86%|-15.02%|
|Compressor for vehicle|||||||
||Industry|598,990,378.75|39.88%|503,238,417.55|32.14%|19.03%|
|air conditioner|||||||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Main suppliers of the Company
|||
|-|-|
|Total purchase from top 5 suppliers (RMB)|348,906,426.87|
|Share of purchase from top 5 suppliers in total purchase||
||22.51%|
|of year||

Profiles of top 5 suppliers
|||||
|-|-|-|-|
|||Amount of purchase|Percentage in total purchase of|
|No.|Name of suppliers|||
|||(RMB)|year|
|1|Anhui Haofang Machinery & Electronics Co., Ltd.|117,889,141.23|7.61%|
|2|Chongqing Yamaha|73,544,581.59|4.74%|
||Pangang Group International Trade Co., Ltd. Chongqing|||
|3||59,132,095.22|3.81%|
||Branch|||
|4|Chongqing Mingxin Machinery Manufacturing Co., Ltd.|56,230,482.64|3.63%|
|5|Luoyang Zhufeng Huaying Motor Tricycle Co., Ltd.|42,110,126.19|2.72%|
|Total|--|348,906,426.87|22.51%|

 Amongst the top 5 suppliers, Chongqing Jianshe Yamaha is a related party of the Company. Chongqing Jianshe Yamaha is a joint venture in which the Company is holding50% of shares.
4. Expenses
Sales expense was RMB96,296,200 for the report period, which decreased by9.55% from that of the same period of last year. This was caused by reducing of sales force due to depression of sales of Jianshe brand motorcycles. Administration expenses of the year was RMB164,666,600, an increase of4.38% over the same period of last year, which was caused by increasing ofR&D cost and amortizing of intangible assets.
Financial expenses of the year was RMB91,458,200, an decrease of16.50% from same period of last year. This was caused by decrease of bank loans.
In RMB10 thousand
|||||
|-|-|-|-|
|Items|Amount of theCurrent Term|Amount of thePrevious Term|Changed YoY %|
|Sales expense|9,629.62|10,646.91|-9.55%|
|Administrativeexpense|16,466.66|15,775.62|4.38%|
|Financial expenses|9,145.82|10,953.10|-16.50%|

5.R&D expenses
In year 2014,R&D expenses were totaled to RMB45.1010 million, which increased by6.03% YoY, account for
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text2.56% of the turnover of this year. Investment was on projects such as ATV400 engine, technical innovation project, air-conditioner iron body performance improving, air-conditioner testing ability project, and electric compressor project.
In RMB10 thousand
||||||
|-|-|-|-|-|
|Items|2014|2013|Change over sameperiod last year|Remarks|
|Amount of R&D expenses|4510.10|4253.47|6.03%||
|Percentage of R&Dexpense on net asset|260.38%|28.18%|232.2%|The Company is in loss position in year 2014, therefore theportion of R&D in net asset increased significantly.|
|Percentage of R&Dexpense on turnover|2.56%|2.26%|0.29%||

6. Cash flow
In RMB Yuan
|||||
|-|-|-|-|
|Items|2014|2013|Change over same period last year|
|Sub-total of cash inflow from business activities|1,123,076,117.78|1,292,652,070.76|-13.12%|
|Sub-total of cash outflow from business activities|1,028,477,465.87|1,129,803,408.72|-8.97%|
|Cash flow generated by business operation, net|94,598,651.91|162,848,662.04|-41.91%|
|Sub-total of cash inflow due to investment activities|36,257,626.79|129,357,497.04|-71.97%|
|Sub-total of cash outflow due to investment activities|8,308,530.07|19,896,411.57|-58.24%|
|Net cash flow generated by investment|27,949,096.72|109,461,085.47|-74.47%|
|Subtotal of cash inflow from financing activities|3,204,819,808.99|3,489,147,724.74|-8.15%|
|Subtotal of cash outflow due to financing activities|3,462,507,504.63|3,670,881,698.81|-5.68%|
|Net cash flow generated by financing|-257,687,695.64|-181,733,974.07|-41.79%|
|Net increasing of cash and cash equivalents|-134,666,762.70|88,612,434.36|-251.97%|

 Statement on change of amounts for over30% YoY.
Net cash flow from business operation decreased, which was caused by significant decrease of government subsidy in the year.
Net cash flow from investment activities decreased under the influence of transferring of land-using rights in last year.
Net cash flow from financial activities decreased due to decrease of bank loans.
Statement on major difference between operational cash flow and net profit of the year.
[] Applicable;[V] Not applicable
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text III. Main business composition
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Gross profit|Change in|Change in operation|Change in gross|
||Turnover|Operation cost|||||
||||ratio %|turnover YoY|cost YoY|profit YoY|
|On Industries|||||||
|Industry|1,695,959,258.99|1,501,878,617.61|11.44%|-6.15%|-4.08%|-1.91%|
|On Products|||||||
|Motorcycle and|||||||
||968,500,508.27|902,888,238.86|6.77%|-16.84%|-15.02%|-2.00%|
|parts|||||||
|Vehicle air|||||||
||727,458,750.72|598,990,378.75|17.66%|13.25%|19.03%|-4.00%|
|conditioner|||||||
|On territories|||||||
|Sub-total of|||||||
||1,470,989,615.23|1,296,166,312.11|11.88%|-4.92%|-3.81%|-1.02%|
|domestic sales|||||||
|Sub-total of|||||||
||224,969,643.76|205,712,305.50|8.56%|-13.48%|-5.77%|-7.48%|
|overseas sales|||||||

If the statistics window of main business has been changed in the report period, the main business information of the latest year after adjusted according to the new statistics window.
[] Applicable;[V] Not applicable
IV. Situation of assets and liabilities
1. Major change in asset items
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||End of 2014||End of 2013||||
||||||Change of|Statement on major|
|||Share in total||Share in total|||
||Amount||Amount||share|change|
|||asset||asset|||
|Monetary capital|192,918,049.28|8.07%|388,314,602.28|14.06%|-5.99%||
|Account receivable|255,013,689.72|10.67%|311,899,501.77|11.30%|-0.63%||
|Inventories|277,612,004.04|11.62%|299,191,811.74|10.84%|0.78%||
|Investment real estates||0.00%||0.00%|0.00%||
|Long-term share equity|686,110,128.77||689,241,790.19||||
|||28.72%||24.96%|3.76%||
|investment|||||||
|Fixed assets|715,930,693.00|29.97%|765,309,375.94|27.72%|2.25%||
|Construction in process|16,315,153.10|0.68%|9,289,928.04|0.34%|0.34%||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text 2. Major change in liability items
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||2014||2013||||
||||||Change of|Statement on major|
|||Share in total||Share in total|||
||Amount||Amount||share|change|
|||asset||asset|||
|Short-term loans|803,500,000.00|33.63%|896,805,047.85|32.48%|1.15%||
|Long-term|121,000,000.00||129,000,000.00||||
|||5.06%||4.67%|0.39%||
|borrowings|||||||

3. Assets and liabilities on fair value basis
[] Applicable;[V] Not applicable
4. Main overseas properties
[] Applicable;[V] Not applicable
V. Competition analyze
Motorcycle segment: The Company has been doing its all best to accelerate technical progress and reinforcing co-operation with YAMAHA. A number of technical breakthroughs were achieved including design, power, and NVH technologies. Core technologies were acquired such as quality improving, combustion analyzing, and engine balance improvement. F50– the 4-valve single cylinder water-cooled engine, has won the 2nd award of technical innovation issued by the Military Group.
The Company conducted revising of Industrial Standard QC/T681 passed the verification and greatly lifted theCompany‘s competition. In the report period, the Company obtained 81 patents, including 15 invention patents, 35 new applied technologies, and 31 outer design patents. As of the end of report period, the Company was possessing 572 effective patents.
Automobile air-conditioner compressor business: Through over 20 years of technical research and digestion, as well as independent innovation, the Company has been able to produce compressors with high performance and competition. Rotating compressor products were taking steady market share in the whole industry. Over80% of production equipment were imported from multiple countries including the US, Germany, Swiss, and Japan. In the report period, the Company has been reinforce investment on fixed assets, and has achieved productivity of 2 million units per year. Online testing, quality control, and researching were fully upgraded.
VI. Analyzing of investment position
1. External equity investment
(1) External investment
No external investment in the report period.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text (2) Shareholding in financial enterprises
No holding of shares of financial institutions in the report period.
(3) Stock investment
No securities investment in the report period.
(4) Statement of holding equities in other PLCs
The Company was not holding shares of any other PLC as of the end of report period.
2. Trusted financing, derivate instruments, and trusted loans
(1) Trusted financing
No trust financial management in the report period.
(2) Derivate instrument investment
No derivate instrument investment in the report period.
(3) Trusted loans
No trusted loans in the report period.
3. Using of proceeds from share placing.
No using of capital from public financing in the report period.
4. Analyze of main subsidiaries and affiliates
Profiles of main subsidiaries and affiliates
In RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Name of|Type of||Major products|Registered||||Operation||
|||Industry|||Gross Assets|Net asset|Turnover||Net profit|
|companies|business||or service|capital||||profit||
||||Domestic sales|||||||
|Sales Co.|Subsidiaries|Trade|of motorcycles|12000000|159,131,132.95|-194,535,477.74|205,106,183.58|-56,007,421.27|-36,219,423.18|
||||and parts|||||||
||||Export of|||||||
||||motorcycles|||||||
|Import &||||||||||
||Subsidiaries|Trade|and parts,|60,377,527.88|106,328,288.45|61,883,690.06|107,452,983.44|-1,676,749.75|-175,718.76|
|Export Co.||||||||||
||||import &|||||||
||||export agency|||||||
||||Manufacturing|||||||
|Air||||||||||
||||and sales of|||||||
|Conditioner|Subsidiaries|Manufacturing||160,000,000.00|795,254,521.50|232,370,038.98|728,501,061.81|2,671,776.31|3,265,836.66|
||||auto|||||||
|Co.||||||||||
||||air-conditioners|||||||
||||Domestic sales|||||||
|Shanghai||||||||||
||Subsidiaries|Manufacturing|of motorcycles|16,000,000.00|19,781,516.58|1,196,559.01|16,403,587.24|325,110.78|106,355.59|
|Jianshe||||||||||
||||and parts|||||||
||||Domestic sales|||||||
|Sales Co.|Subsidiaries|Trade||500,000.00|690,327.61|420,107.58||9,326.50|9,326.50|
||||of motorcycles|||||||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||and parts|||||||
||||Production and|||||||
|Chongqing|Shareholding||sales of|||||||
|||Manufacturing||379,924,998.46|949,984,584.63|632,825,807.44|1,821,512,908.06|26,724,314.63|24,094,938.03|
|Yamaha|company||motorcycles|||||||
||||and parts|||||||
||||Production and|||||||
|Zhuzhou|Shareholding||sales of|||||||
|||Manufacturing||497,857,360.00|805,783,480.48|564,105,472.83|948,997,903.96|49,963,619.93|40,508,852.24|
|Jianya|company||motorcycles|||||||
||||and parts|||||||
||||Production of|||||||
|Pingshan|Shareholding||sales of|||||||
|||Manufacturing||158,758,676.00|188,027,423.32|166,916,974.35|128,704,656.34|7,013,489.80|5,882,284.09|
|Taikai|company||motorcycle|||||||
||||parts|||||||
||||Production of|||||||
|Tongsheng|Shareholding||sales of|||||||
|||Manufacturing||10,000,000.00|112,029,584.51|1,348,133.24|121,765,768.76|-5,045,870.79|-5,583,827.52|
|Construction|company||motorcycle|||||||
||||parts|||||||
|Southern|||Technical|||||||
|||Science||||||||
|Motorcycle|Shareholding||development of|||||||
|||research and||85,000,000.00|67,749,080.26|67,617,317.81|204.31|-2,209,070.26|-2,209,070.26|
|R&D Co.,|company||motorcycle and|||||||
|||development||||||||
|Ltd.|||parts|||||||
||Shareholding|Property|Property|||||||
|Fuyeda||||2,000,000.00|4,927,344.82|284,956.51|6,204,959.95|945,502.39|943,502.39|
||company|management|management|||||||

Particulars about acquiring and disposal of subsidiaries
[] Applicable;[V] Not applicable
5. Major projects using non-raised capital
In RMB10 thousand
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount||||||
||||Accumulation of|Investmentprogress ofthe project||||
||Planned|invested|||Turnover of|Date and index of||
|Projects|||actual input at end|||||
||investment|this report|||the project|information disclosure||
||||of period|||||
|||term||||||
|Technical reformation of||||||||
|rotating air-conditioner||||||Announcement 2011-010 at||
||||||Mass|||
|compressor production (1.5|10,700|0|9,115|97.00%||www.cninfo.com.cn dated||
||||||production|||
|million productivity||||||April 22, 2011||
|expanding)||||||||
|||||||Announcement 2014-063 at||
|Project of Testing Facilities|1,800|430|430|23.89%||www.cninfo.com.cn dated||
|||||||August 5, 2014.||
|Technical reformation of||||||||
|rotating air-conditioner||||||Announcement 2014-064 at||
|compressor production (0.5|10,341|0|0|0.00%||www.cninfo.com.cn dated||
|million productivity||||||August 5, 2014.||
|expanding)||||||||
|Total|22,841|430|9,545|--|--|--|--|

 VII. Prospect of business performance of January– March 2015
Business profitability prediction: loss
Category of prediction data: periodic data
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
||||||||
|-|-|-|-|-|-|-|
||From the beginning of year to the end of next|||Same period last|||
||||||Changed by||
||report period|||year|||
|Predicted number of accumulative net profit|||||||
||-1,900|--|-1,500|-3,474|Increase|--|
|(RMB0,000)|||||||
|Basic earnings per share (Yuan/share)|-0.1592|--|-0.1256|-0.2910|Increase|--|
||Sales of main motorcycle products decreased, lower gross profit, and higher fixed||||||
|Remarks on the prediction|||||||
||costs||||||

VIII. Entities with special purposes under theCompany’s control
[] Applicable;[V] Not applicable
IX. Development prospect
(I) Competition, development trend, and problems the Company is facing
1. Motorcycle industry of the country was depressing continuously under the impact of electronic bikes and restriction on motorcycles in most cities. Whole industry was suffering market depressing and intensive competition. Profitability of the whole industry was declining and even in losing situation.
Material and technical resources of motorcycle production were not fully employed all through the industry, and transformation of business is very difficult. The market is expected more depressed in year 2015, the whole motorcycle industry will be shrinking continuously.
The main products of the Company are paralleling with the industrial trend. Significant declining of sales caused idleness of equipment and productivity was not fully developed.
2. Automobile market of the country was growing steadily with bright future. Automobile air-conditioner business has been growing along with the automobile industry.
Small types of automobiles have been enlarging its market share in recent years, which provided space for the growth of theCompany‘s rotating compressor products. The Company has its advantages in the market, though the product lines still need to be improved and productivities to be enlarged.
(II) Development strategies
Along with the differentiation of industrial trends among the two main businesses of the Company, the Company will keep following the strategy of upgrading by reformation and international co-operations.
1. Automobile air-conditioner compressor
Firstly enlarge market share of large outlet products and build up competition power; secondly develop electrical compressor; thirdly construction of the―5-platforms‖ with upgraded technologies and enlarged product lines; fourthly reinforce investment on fixed assets to form productivity of 3 million units in 2 to 3 years.
2. Co-operations and joint ventures
Further co-operation with Yamaha, speed up resource refining, accelerate construction ofR&D system, make the
Company the production and export base of scooters and ATV of Yamaha. Fully develop potential of human
resources, upgrade business operation.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text 3. Traditional businesses
Led by air-conditioner business and co-operation with Yamaha, accelerate resource refining of motorcycle products under Jianshe brand. Concentration of resources to developing businesses and increase profitability and value adding.
(III) Business plan of the new year
In year 2015, the headquarter achieved motorcycle sales of 230 thousand units, including 100 thousand OEM and 80 thousand units of engine, and sales of air-conditioner compressor was 1.95 million units, which will be generally equal to those of 2014.
The following measures will be carried out aiming to achieve the above targets:
1. Further accelerate development of automobile air-conditioner business
1) Further improve marketing structure. Customized service platform will be constructed to increase customer satisfaction. Speedup construction of new projects to bring up growth. Reinforce export approaches, mainly targeting on PSA from France and market in Malaysia. Ensure good development of Sandian from Singapore, Aotai (Yuehai) from Taiwan. Restart of Iran market and new projects.
2) Accelerate product upgrading and renewing. Accelerate developing of 120 aluminum engine, application of P2 technologies and research of P3 generation, engineering and production of electronic compressor, looking for co-operation with advanced enterprises by technical absorption, co-operation, and joint venture, to enlarge business space for automobile air-conditioner projects.
3) Further reinforce lifting of productivity. Ensure accomplishing of 500 thousand expanding project, accelerate restoring of aluminum engine production line to 10 thousand units per month, fully promote GK administration improving program, increase stability and consistency of the production systems, promotion of QCA system to acquire QCA Certificate.
4) Keep improving internal administration. Optimizing of administration processes and adopting of ERP system to resolve shortness and bottlenecks in administration approaches. Standardizing of management to increase efficiency.
2. Further co-operation and joint venture
1) Reinforce OEM co-operation. Lift up quality of current OEM products and ensure achieving of 100 thousand productivity. Reinforce conjunction point control of new projects and make sure production in 2015 and 2016. Accelerate co-operations on products and other business fields. Absorption of advanced technologies and management skills to consolidate core competition.
2) Further reinforce resource integration and conduct outsourcing of low-value and low-scale production processes. Reinforce co-operation with Yamaha and build a competitiveR&D system.
3. Balancing of production resources, refining of resource allocation
1) Refine product lines of the headquarter concentrating on high value-adding and scaled products with independent technologies, as well OEM products for Yamaha. Further lift resource efficiency.
2) Upgrading technical and administration level, improve production processes, reduce out-of-date technologies, reduce production costs, lift up production efficiency.
3) Adjustment of business layout. Using of motorcycle production resources to facilitate self-production of air-conditioner parts, accelerate parts of Yamaha and auto parts.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text (IV) Financial demand and application plan for year 2015
To achieve theCompany‘s business targets, the capital expenses in 2015 will be totally RMB114 million, which will be mainly invested on construction of testing facilities, production enlarging projects, and small technical reformation projects. The capital will be financed by the Company independently and bank loans according to the progress of projects and financial environment of the Company.
The above budgets, business plans and targets do not constitute prediction of theCompany‘s profitability in year 2015. Achieving of these targets is dependent on multiple factors with great uncertainty. Investors please be alert of the risks attached thereof.
X. Statement of the Board on the “Non-standardauditors’ report” issued by the CPA on the current report period
[] Applicable;[V] Not applicable
XI. Statement on changes of accounting policies, accounting estimations, and accounting basis comparing with the last fiscal year
1. Material change of accounting policies
(1) The new accounting standards revised or released in 2014
The Company has been exercising the following accounting standards revised or released in 2014 by the Department of Finance: Enterprise Accounting Standard– Fundamental Rules (Revised); Enterprise Accounting Standard No.2 - Long term equity investment (Revised); Enterprise Accounting Standard No.9–Employees‘ remuneration (Revised); Enterprise Accounting Standard No.30– Preparation of financial statements (Revised); Enterprise Accounting Standard No.33– Preparation of consolidated financial statements (Revised); Enterprise Accounting Standard No.37– Reporting of financial instruments (Revised); Enterprise Accounting Standard No.39– Accounting of fair value; Enterprise Accounting Standard No.40– Arrangement of joint ventures; Enterprise Accounting Standard No.41– Disclosure of equities in other entities
(2) Impact of exercising the new standards is as the following:
1) Exercising of Enterprise Accounting Standard No. 2– Long-term equity investment (Revised)
According to Enterprise Accounting Standard No. 2– Long-term equity investment (Revised), the long-term equity investment in entities featured no common control or material influence, no quotation in an active market, and fair value cannot be measured reliably, are relocated to sellable financial assets. Retrospective adjustment was made thereof.
2) Exercising of Enterprise Accounting Standard No.30– Preparation of financial statements (Revised)
According to the Enterprise Accounting Standard No.30– Preparation of financial statements (Revised), the negative figures of tax payable were transferred to other current asset, and retrospective adjustment was made. Influences of above changes on the opening balances of consolidated financial statements are:
Property of change in Subjects of the account Amount before Amount after Amount of accounting policies influenced adjustment adjustment influence
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text(+/-) Exercising of new accounting
Other current asset 0 17,127,455.06 17,127,455.06 policy
Tax payable 124,374,241.36 141,501,696.42 17,127,455.06 Sellable financial asset 0 0 0 Exercising of new accounting
policy
Long-term share equity
689,241,790.19 689,241,790.19 0 investment
Exercising of new accounting
Capital reserves 960,515,317.59 960,505,517.59 -9,800 policy
Other misc incomes 0 9,800.00 9,800 2. Change of accounting estimation
No change of accounting estimation occurred in the report period.
XII. Statement on retrospective correction of material accounting errors in the report period No retrospective correction of material accounting error in the report period.
XIII. Statement on change of consolidation range comparing with the previous fiscal year No change of consolidation range in the report period.
XIV. Particulars about dividends
Produce, exercise or modification of dividend plan in the report period
According to thedocument证监发【2012】第37号 issued by CSRC, the proposal of amending the articles about dividend policies in the Articles of Association was adopted at the 7th meeting of the 6th term of Board held on July 26, 2012. It provides further details about methods, conditions, and rates of dividend, and uses of retained profit. It was subject to approval at the 1st provisionalshareholders‘ meeting held on August 30, 2012.
The Board of Directors proposes dividend plan for each fiscal year according to the Articles of Association. Independent directors provide opinions on the plan. The plan was implemented by the Board upon approval of theShareholders‘ Meeting.
|||
|-|-|
|Particulars about Cash Dividend Policy||
|Whether satisfying the requirements of the Articles of Association or resolutions of the||
||Yes|
|shareholders‘ meeting||
|Are standard and rate of dividend definite and clear|Yes|
|Complete decision making process|Yes|
|Independent directors fulfilling their responsibilities|Yes|
|Whether the minority shareholders were given opportunities to express their claims or||
||Yes|
|opinions, whether their legal rights are safeguarded||
|Whether the conditions and procedures of adjusting cash dividend policy legal and transparent|Yes|

Profit distribution or common reserve capitalization in the latest 3 years (including the report year)
Retained profit was accumulated to a negative number from 2012 to 2014, the Company did not implemented any
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text dividend plan or capitalizing of common reserves.
Cash dividends in the latest three years
In RMB Yuan
|||||||
|-|-|-|-|-|-|
||||Percentage in net||Percentage of|
|||||Amount of repurchased||
|||Net profit attributable to the|profit attributable to||repurchased shares by|
|Dividend|Cash dividend|||shares by means of cash||
|||owners of the PLC in the|owners of the PLC||means of cash offer|
|year|(tax included)|||offer accounted into cash||
|||consolidated statement|in the consolidated||accounted into cash|
|||||dividend||
||||statement||dividend|
|2014|0.00|-133,593,949.98|0.00%|0.00|0.00%|
|2013|0.00|11,589,364.53|0.00%|0.00|0.00%|
|2012|0.00|-143,723,842.47|0.00%|0.00|0.00%|

 Making profit and the retained profit is a positive figure but no cash dividend preplan was proposed:
[] Applicable;[V] Not applicable
XV. Plan of dividend and capitalizing of common reserves for current year
No cash dividend, nor bonus shares or capitalizing of common reserves will be carried out for the report period.
XVI. Statement on social responsibilities
(I) Energy saving and clean production
The Company continues to promote energy saving and clean production in year 2014 and achieved great results. In 2014, the overall energy consuming on industrial value adding has decreased by7.82%; SO2 outlet decreased by49.44%; CO2 outlet decreased by 27 thousand tons; and chemical oxygen consuming decreased by over 4000 kg.
In year 2014, the Company passed the annual verification of ISO14001OHSAS18001 regarding environmental and labor safety. The system was composed of 27 procedure documents and 24 operational documents, which were operated well in preventing accidents.
(II) Caring of employees
The Company kept following people-oriented principle and was well commented by employees. In year 2014, the Company organized multiple entertainment and cultural events. Health care for employees were conducted in full range.
(III) Guarding ofinvestors’ benefit
1. The Company has been continuously refining and improving of the Company administration structure according to the laws, regulations, and codes. Theshareholders‘ meeting, the board, the supervisory committee, and executives are the decision making and executive structures of the Company. The Company provide every best opportunity to mid-small shareholders to participate in decision making procedure.
In the report period, the Company called up 3shareholders‘ meetings, including 2 meetings adopted combination
of onsite voting and online voting.74.56%、74.50%, and74.45% of all effective shares voted at the 4 meetings
respectively. All shareholders, especially mid-small shareholders, were guarded of their equal opportunities.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text 2. The Company has been devoting itself to build a positive and sound management culture, attaching great importance to relationship with investors. In the report period, the Company conducted 90 information disclosures and accepted 16 inquiries, participated in the―Investors‘Day‖ organized by Chongqing Bureau of CSRC, and 88 responses were provided at100%.
(IV) Social activities and charity
In year 2014, the Company has been participating in social activities, provided help in the earthquake in Yunan, donated RMB110 thousand to pupils in poor areas, as well as RMB40 thousand of computers and sports facilities. Whether the PLC or any of its subsidiaries are recognized as heavy pollution industry by national environmental authorities
[] Yes[V] No Not applicable
Whether the PLC or any of its subsidiaries involves in material social security issues
[] Yes[V] No Not applicable
Whether the Company was under execution of punishment in the report period
[] Yes[V] No Not applicable
XVII. Reception of investigations, communications, or interviews in the report period
|||||||
|-|-|-|-|-|-|
||||Type of|||
|Time/date|Place|Way||Visitors|Main content involved and material provided|
||||visitors|||
|January 27|The|Telephone|||Q: Will the ―ST‖ been canceled after releasing of the annual report?|
||||Individual|Investor||
|2014|Company|communication|||A: Please refer to the official announcement of the Company.|
||||||Q: Why hasn‘t the ST alert been canceled? A: It is subject to|
|May 6,|The|Telephone||||
||||Individual|Investor|approval of the stock exchange. Please keep informed by the|
|2014|Company|communication||||
||||||announcement of the Company.|
|May 29,|The|Telephone|||Q: If it will be an lose for the interim period? A: Performance will|
||||Individual|Investor||
|2014|Company|communication|||be announced upon completion of accounting process.|
||||||Q: The Rectification Report has mentioned that the Company has|
||||||won in the bidding competition for supplying contract of Chang‘an|
|August 18,|The|Telephone|||Automobile. Whether this will influence the Company‘s|
||||Individual|Investor||
|2014|Company|communication|||performance?|
||||||A: The Company has issued announcement No.2014-057 about this|
||||||on July 12, 2014.|
|Time of receptions||||16||
|Number of institutes received||||0||
|Number of individuals received||||16||
|Number of other visitors received||||0||
|If un-disclosed material information disclosed?||||No||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter V. Significant Events
I. Major lawsuits and arbitrations
|||||||||
|-|-|-|-|-|-|-|-|
||Amount||||||Index of|
|||If constitute|Progress of||Progress of|Date of||
|Profile of the claim|involved|||Results and influence|||information|
|||expected liabilities|the lawsuit||execution|disclosure||
||(RMB0‘000)||||||disclosure|
||||It was on May|||||
||||22, 2014, the|The Company and||||
||||No.5 Middle|Mr. Sun Weibao were||||
||||Court of|judged by the first||||
||||Chongqing|sentence to undertake||||
||||judged that|the liability of||||
||||Sun Weibao|clearing the debit of||||
||||and the|RMB3194300 and the||||
|On July 17, 2013,||||||||
||||Company is|lawsuit fee of||||
|Ningbo Zhenhai||||||||
||||jointly|RMB32400, totally||||
|Yongzheng Investment||||||||
||||responsible to|RMB3226700. But||||
|Co., Ltd. sued to the||||||For details please find||
||||pay|Mr. Sun Weibao is||||
|5th Court of||||||Announcement of Judgment No.||
||||RMB3.1943|missing without||||
|Chongqing claiming||||||2014-056 released by Securities||
||319.43|Yes|million to|contact. Therefore the||||
|for compensation of||||||Times, Hong Kong Commercial||
||||Ningbo|Company is||||
|RMB3.1943 million||||||Daily and www.cinfo.com.cn||
||||Zhenhai|providing full liability||||
|from the Company for||||||dated July 12, 2014||
||||Yongzheng|provision in the 1st||||
|failing of receivership||||||||
||||Investment|half of 2014. The||||
|of Ningbo Jianshe||||||||
||||Co., Ltd. The|Company has raised||||
|Motorcycle Co., Ltd.||||||||
||||Company|appeal to the High||||
||||appealed for|Court, and influence||||
||||secondary trial|of this issue on the||||
||||to the High|Company‘s profit is||||
||||Court of|subject to the||||
||||Chongqing,|sentence of the 2nd||||
||||and was|trial.||||
||||accepted.|||||
||||||Primary sentence|||
||||||was issued by the|||
||||||Court of Kunshan|||
||||||on January 9, 2014,|||
||||||by which Shanghai|||
|On August 3, 2013,|||||Jianshe is obliged|||
|Kunshan Haoxu Auto|||||to pay RMB120.6|||
|Parts Co., Ltd. sued to|||||thousand plus|||
|||||||For details please go to||
|Kunshan Court|||||RMB2700 of|||
|||||||Announcement of Judgment No.||
|claiming for contract||||Reduced the gains of|lawsuit fee.|||
|||||||2014-072 with Securities Times,||
|payment of RMB120.6|12.06|||the period by|Shanghai Jianshe|||
|||||||Hong Kong Commercial Daily||
|thousand plus lawsuit||||RMB123,300|sued to the Middle|||
|||||||and www.cninfo.com.cn dated||
|expense from|||||Court of Suzhou|||
|||||||September 4, 2014.||
|Shanghai Jianshe – a|||||claiming for|||
|subsidiary of the|||||clarification of|||
|Company.|||||basis of judgment.|||
||||||It was rejected by|||
||||||the court on June|||
||||||13, 2014 and the|||
||||||original sentence|||
||||||would take effect.|||

II. Questioning by medias
No media queries raised in the report period.
III. Non-operational capital appropriation by holding shareholder and its related parties
No non-operational capital appropriation by holding shareholder or its related parties.
Shu Lun Pan CPA Co., Ltd. issued the Statement of Special Auditing on Capital Appropriation by Holding
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Shareholder or Related Parties. For details please find announcement 2015-028 available at http://www.cninfo.com.cn dated April 28, 2015.
IV. Receivership and bankruptcy
No bankruptcy or capital reorganizing issues occurred in the report period.
V. Asset transactions
1. Acquisition of assets
No acquisition of assets at the end of report period.
2. Disposal of assets
No disposal of assets at the end of report period.
3. Merger of entities
No merger or takeover of entities in the report period.
VI. Implementation of share incentive program and influences
No stock incentive plan composed nor implemented in the report period.
VII. Material related transactions
1. Related transactions related to daily operation
|||||||||
|-|-|-|-|-|-|-|-|
||||Subjects of the|Principle of pricing|||Ratio in|
||||||Price of|Amount of trade||
|Related parties|Relationship|Type of trade|related|the related|||similar|
||||||trade|RMB0‘000||
||||transactions|transactions|||trades|
|||Purchase of||||||
|Fuyeda|Affiliates|goods and|Labour service|||66.76|0.04%|
|||services||||||
|||Purchase of||||||
|Jianshe|Under same||Energy, labor,|||||
|||goods and||||2,881.46|1.63%|
|Industry|control||moulds|||||
|||services||||||
|||Purchase of||||||
|Pingshan||||||||
||Joint ventures|goods and|Spare parts|||733.31|0.42%|
|Taikai||||||||
|||services||||||
|||Purchase of||||||
|Chongqing||||||||
||Joint ventures|goods and|Spare parts|||7,354.46|4.17%|
|Yamaha||||||||
|||services||||||
||Affiliate of the|||||||
|||Purchase of||||||
|Jianxing|subsidiary of the|||||||
|||goods and|Spare parts|||3,590.81|2.04%|
|Machinery|controlling|||||||
|||services||||||
||shareholder|||||||
|||Purchase of||||||
||Under same|||||||
|Jialin Industry||goods and|Spare parts|||0.9|0.00%|
||control|||||||
|||services||||||
|Tongsheng||Purchase of||||||
||Affiliates||Spare parts|||1,039.71|0.59%|
|Construction||goods and||||||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
||||||||
|-|-|-|-|-|-|-|
|||services|||||
|China Changan||Purchase of|||||
||Under same||Acceptance of||||
|and||goods and|||353.43|0.20%|
||control||repairing service||||
|subsidiaries||services|||||
|Chongqing||Sales of goods|Parts and finished||||
||Joint ventures||||34,364.35|22.11%|
|Yamaha||and services|goods||||
|Zhuzhou||Sales of goods|||||
||Joint ventures||Spare parts||942.23|0.61%|
|Jianya||and services|||||
||Under same|Sales of goods|Parts and finished||||
|Jialin Industry|||||0.8|0.00%|
||control|and services|goods||||
|Jiangmen|Under same|Sales of goods|Parts and finished||||
||||||1,137.46|0.73%|
|Qingqi|control|and services|goods||||
|Tongsheng||Sales of goods|||||
||Affiliates||Spare parts||278.3|0.18%|
|Construction||and services|||||
|China Changan|||||||
||Under same|Sales of goods|||||
|and|||Finished products||25,363.32|16.36%|
||control|and services|||||
|subsidiaries|||||||
|Jianshe|Under same|Sales of goods|||||
||||Import agency||17.81|0.01%|
|Industry|control|and services|||||
|Total||--||--|78,125.11|--|
|||The above transactions are in favor of the effectiveness of resources, avoid repeating investment,|||||
|Necessity, consistency, and reason||reduce purchasing cost, control quality and satisfy the need of business operation. The Company|||||
|of choosing the related party (but||conducts the above related transactions with consideration of good cooperation and convenience|||||
|not other parties in the market)||of location. The above related parties are in good business and administration situation and good|||||
|||credit.|||||
|Influence of the related transaction|||||||
|||All related transactions are monitored by related laws and regulations and would not influence|||||
|on the independency of the|||||||
|||the independency of the Company.|||||
|Company|||||||
|Dependency of the Company on|||||||
|the related party, and||The Company has greater dependency on the supply of energy from Jianshe Industry.|||||
|measurements if any|||||||
|||Related transactions in 2014 were predicted to RMB916.95 million, and actually RMB781.2511|||||
|Please provide actual situation of|||||||
|||million occurred. The prediction includes RMB201.80 million of purchasing of goods and|||||
|routine related transactions if they|||||||
|||services, and actually RMB160.2084 occurred.|||||
|are forecasted in categories (if|||||||
|||Sales of goods and services were predicted of RMB714.50 million with actually RMB621.0427|||||
|any)|||||||
|||million occurred. Asset rental was predicted of RMB650 thousand and RMB0 occurred.|||||

 References: Announcement 2014-021 dated April 26, 2014 and 2014-072 dated September 4, 2014 at www.cninfo.com.cn.
2. Related transactions related to asset purchasing or disposal
No related transaction regarding asset purchase or disposal up to the end of report period.
3. Related transaction of joint external investment
No related transaction of joint external investment in the report period.
4. Debtors and credits with related parties
No debtors and credits with related parties in the report period.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text 5. Other related transactions
Financial business with Military Group Finance Co.
||||
|-|-|-|
|Category of trade|Transaction Units|Amount|
|Saving balance|Chongqing Jianshe Motorcycle Co., Ltd.|110,004.78|
||Chognqing Jianshe Automobile Air-conditioner Co.,Ltd.|5,558.52|
||Chongqing Northern Jianshe Import & Export Co., Ltd.|2,454.55|
||Chongqing Jianshe Sales Co., Ltd.|137,418.77|
||Sub-total|255,436.62|
|Balance of bank acceptance notes with discount notmatured|Chongqing Jianshe Motorcycle Co., Ltd.|322,390,000.00|
||Chognqing Jianshe Automobile Air-conditioner Co.,Ltd.|198,177,624.53|
||Sub-total|520,567,624.53|
|Loan balance|Chongqing Jianshe Motorcycle Co., Ltd.|220,000.000.00|
|Sum of loans|Chongqing Jianshe Motorcycle Co., Ltd.|545,000,000.00|
|Sum of repayments|Chongqing Jianshe Motorcycle Co., Ltd.|375,000,000.00|
|Interest gains|Chongqing Jianshe Motorcycle Co., Ltd.|8,355.19|
||Chognqing Jianshe Automobile Air-conditioner Co.,Ltd.|4,157.47|
||Chongqing Jianshe Sales Co., Ltd.|1,838.43|
||Chongqing Northern Jianshe Import & Export Co., Ltd.|2,520.11|
||Sub-total|16,871.20|
|Interest payment of loans and discount|Chongqing Jianshe Motorcycle Co., Ltd.|19,841,526.24|
||Chognqing Jianshe Automobile Air-conditioner Co.,Ltd.|16,103,953.81|
||Chongqing Jianshe Sales Co., Ltd.|1,781,038.88|
||Sub-total|37,726,518.93|

 References of information disclosure about the related transactions
||||
|-|-|-|
||Date of provisionalannouncement|Title of website for the provisional|
|Title of provisional announcement|||
|||announcement|
|Announcement on accepting of financial service andrelated transactions|||
||January 9, 2014|www.cninfo.com.cn|

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text VIII. Material contracts and execution
1. Entrustment, contracting, and leasing issues
(1) Trusteeship
No trusteeship in the report period.
(2) Contracting
No contracting in the report period.
(3) Leasing
No Leasing in the report period.
2. Guarantees
In RMB10 thousand
||||||||||
|-|-|-|-|-|-|-|-|-|
|External Guarantee (Exclude controlled subsidiaries)|||||||||
|||||Actual|||||
|Guarantee|Amount of|Amount of|Actual date of|amount|||||
||||||||Complete|Related|
|provided|guarantee and date|the|occurring (signing|of|Type of guarantee|Term|||
||||||||d or not|guarantee|
|to|of disclosure|guarantee|date of agreements|guarante|||||
|||||e|||||
|Sales Co.|April 24, 2013|1,999|Sept 6 2013|1,999|Joint liabilities|6 months|Yes|No|
|Jianmo B|April 24, 2013|1,000|Sept 25 2013|1,000|Joint liabilities|6 months|Yes|No|
|Jianmo B|April 24, 2013|2,000|Oct 10 2013|2,000|Joint liabilities|6 months|Yes|No|
|Jianmo B|April 24, 2013|100|May 22 2013|100|Joint liabilities|11 months|No|No|
|Vehicle air|||||||||
|conditione|April 24, 2013|3,000|Dec 18 2013|3,000|Joint liabilities|6 months|Yes|No|
|r|||||||||
|Vehicle air|||||||||
|conditione|April 26, 2014|2,100|Jan 26 2014|2,100|Joint liabilities|6 months|Yes|No|
|r|||||||||
|Vehicle air|||||||||
|conditione|April 24, 2013|5,000|Sept 16, 2013|5,000|Joint liabilities|12 months|Yes|No|
|r|||||||||
|Jianmo B|April 24, 2013|100|May 22 2013|100|Joint liabilities|18 months|Yes|No|
|Jianmo B|April 24, 2013|100|May 22 2013|100|Joint liabilities|24 months|Yes|No|
|Jianmo B|April 24, 2013|2,200|May 22 2013|2,200|Joint liabilities|30 months|No|No|
|Jianmo B|April 24, 2013|2,400|May 22 2013|2,400|Joint liabilities|37 months|Yes|No|
|Sales Co.|April 26, 2014|1,999|Feb 26 2014|1,999|Joint liabilities|6 months|Yes|No|
|Jianmo B|April 24, 2013|2,800|Nov 13 2013|2,800|Joint liabilities|6 months|Yes|No|
|Jianmo B|April 24, 2013|2,100|Nov 15 2013|2,100|Joint liabilities|6 months|Yes|No|
|Jianmo B|April 24, 2013|5,000|Nov 5 2013|5,000|Joint liabilities|6 months|Yes|No|
|Jianmo B|April 26, 2014|100|Apr 09 2014|100|Joint liabilities|5 months|Yes|No|
|Jianmo B|April 26, 2014|100|Mar 31 2014|100|Joint liabilities|5 months|Yes|No|
|Jianmo B|April 26, 2014|100|April 10, 2014|100|Joint liabilities|11 months|No|No|
|Jianmo B|April 26, 2014|100|Mar 31 2014|100|Joint liabilities|11 months|No|No|
|Jianmo B|April 26, 2014|100|Apr 11 2014|100|Joint liabilities|17 months|No|No|
|Jianmo B|April 26, 2014|100|Mar 31 2014|100|Joint liabilities|17 months|No|No|
|Jianmo B|April 26, 2014|100|Apr 12 2014|100|Joint liabilities|23 months|No|No|
|Jianmo B|April 26, 2014|100|Mar 31 2014|100|Joint liabilities|23 months|No|No|
|Jianmo B|April 26, 2014|2,000|Mar 31 2014|2,000|Joint liabilities|30 months|No|No|
|Jianmo B|April 26, 2014|2,000|Apr 13 2014|2,000|Joint liabilities|29 months|No|No|

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Jianmo B|April 26, 2014|2,100|Mar 31 2014||2,100|Joint liabilities|37 months|No||No|
|Jianmo B|April 26, 2014|2,100|Apr 14 2014||2,100|Joint liabilities|36 months|No||No|
|Jianmo B|April 26, 2014|2,500|Apr 28 2014||2,500|Joint liabilities|6 months|Yes||No|
|Jianmo B|April 26, 2014|2,500|May 5 2014||2,500|Joint liabilities|6 months|Yes||No|
|Jianmo B|April 26, 2014|2,800|May 08, 2014||2,800|Joint liabilities|6 months|Yes||No|
|Jianmo B|April 26, 2014|2,100|May 14 2014||2,100|Joint liabilities|6 months|Yes||No|
|Jianmo B|April 26, 2014|4,900|May 12 2014||4,900|Joint liabilities|12 months|No||No|
|Jianmo B|April 26, 2014|2,400|May 22 2013||2,400|Joint liabilities|37 months|No||No|
|Jianmo B|April 26, 2014|50|Jul 25 2014||50|Joint liabilities|6 months|No||No|
|Jianmo B|April 26, 2014|50|Jul 25 2014||50|Joint liabilities|12 months|No||No|
|Jianmo B|April 26, 2014|50|Jul 25 2014||50|Joint liabilities|18 months|No||No|
|Jianmo B|April 26, 2014|50|Jul 25 2014||50|Joint liabilities|24 months|No||No|
|Jianmo B|April 26, 2014|200|Jul 25 2014||200|Joint liabilities|31 months|No||No|
|Jianmo B|April 26, 2014|300|Jul 25 2014||300|Joint liabilities|37 months|No||No|
|Vehicle air|||||||||||
|conditione|Aug 5 2014|2,500|Sept 11 2014||2,500|Joint liabilities|12 months|No||No|
|r|||||||||||
|Vehicle air|||||||||||
|conditione|Aug 5 2014|2,500|September 15, 2014||2,500|Joint liabilities|12 months|No||No|
|r|||||||||||
|Jianmo B|Aug 5 2014|2,500|October 15, 2014||2,500|Joint liabilities|6 months|No||No|
|Jianmo B|Aug 5 2014|2,500|Oct 16 2014||2,500|Joint liabilities|6 months|No||No|
|Jianmo B|Aug 5 2014|2,800|October 28, 2014||2,800|Joint liabilities|6 months|No||No|
|Jianmo B|Aug 5 2014|2,100|Oct 30 2014||2,100|Joint liabilities|6 months|No||No|
|Vehicle air|||||||||||
|conditione|Aug 5 2014|3,000|Sept 16 2014||3,000|Joint liabilities|6 months|No||No|
|r|||||||||||
|Total of external guarantee approved in the|||||Total of external guarantee actually occurred in||||||
|||||61,100|||||76,700||
|report term (A1)|||||the report term (A2)||||||
|Total of external guarantee approved as of end|||||Total of external guarantee actually occurred as||||||
|||||61,100|||||37,001||
|of report term (A3)|||||of end of report term (A4)||||||
|Guarantee provided to controlled subsidiaries|||||||||||
||||||Actual||||||
|Guarantee|Amount of|Amount of|Actual date of||amount||||||
|||||||||Complete||Related|
|provided|guarantee and date|the|occurring (signing||of|Type of guarantee|Term||||
|||||||||d or not||guarantee|
|to|of disclosure|guarantee|date of agreements||guarante||||||
||||||e||||||
|Sales Co.|April 24, 2013|3,150|Sept 25 2013||3,150|Joint liabilities|6 months|Yes||No|
|Sales Co.|April 26, 2014|2,800|Jan 8 2014||2,800|Joint liabilities|6 months|Yes||No|
|Vehicle air|||||||||||
|conditione|April 24, 2013|5,000|Oct 22 2013||5,000|Joint liabilities|9 months|Yes||No|
|r|||||||||||
|Vehicle air|||||||||||
|conditione|April 26, 2014|2,450|Jan 24 2014||2,450|Joint liabilities|6 months|Yes||No|
|r|||||||||||
|Vehicle air|||||||||||
|conditione|April 24, 2013|2,550|Sept 02 2013||2,550|Joint liabilities|11 months|Yes||No|
|r|||||||||||
|Sales Co.|April 24, 2013|2,800|November 20, 2013||2,800|Joint liabilities|6 months|Yes||No|
|Sales Co.|April 24, 2013|2,997|Dec 12, 2013||2,997|Joint liabilities|6 months|Yes||No|
|Vehicle air|||||||||||
|conditione|April 26, 2014|3,500|Mar 12 2014||3,500|Joint liabilities|9 months|Yes||No|
|r|||||||||||
|Sales Co.|April 26, 2014|3,150|Apr 11 2014||3,150|Joint liabilities|6 months|Yes||No|
|Sales Co.|April 26, 2014|2,800|May 20, 2014||2,800|Joint liabilities|6 months|Yes||No|
|Sales Co.|April 26, 2014|2,996|Jun 3 2014||2,996|Joint liabilities|6 months|Yes||No|
|Sales Co.|April 26, 2014|2,800|June 12, 2014||2,800|Joint liabilities|12 months|No||No|
|Vehicle air|||||||||||
|conditione|April 26, 2014|2,450|Jul 23 2014||2,450|Joint liabilities|6 months|No||No|
|r|||||||||||
|Vehicle air|||||||||||
|conditione|April 26, 2014|2,550|Jul 3 2014||2,550|Joint liabilities|12 months|No||No|
|r|||||||||||
|Vehicle air|||||||||||
||April 26, 2014|5,000|Jul 4 2014||5,000|Joint liabilities|12 months|No||No|
|conditione|||||||||||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|r||||||||||||
|Sales Co.|Aug 5 2014|3,150|Sept 19 2014||3,150|Joint liabilities||6 months|No||No|
|Sales Co.|Aug 5 2014|2,800|Nov 5 2014||2,800|Joint liabilities||6 months|No||No|
|Total of guarantee to subsidiaries approved in the|||||Total of guarantee to subsidiaries actually|||||||
|||||56,600||||||52,943||
|report term (B1)|||||occurred in the report term (B2)|||||||
|Total of guarantee to subsidiaries approved as of the|||||Total of balance of guarantee actually provided|||||||
|||||56,600||||||18,750||
|report term (B3)|||||to the subsidiaries as of end of report term (B4)|||||||
|Total of guarantee provided by the Company (i.e. total of the above two items)||||||||||||
|Total of guarantee approved in the report term|||||Total of guarantee occurred in the report term|||||||
|||||117,700||||||129,643||
|(A1+B1)|||||(A2+B2)|||||||
|Total of guarantee approved as of end of report term|||||Total of guarantee occurred as of the end of|||||||
|||||117,700||||||55,751||
|(A3+B3)|||||report term|||||||
|Percentage of the total guarantee occurred (A4+B4) on net asset||||||||||||
||||||3,218.66%|||||||
|of the Company||||||||||||
|In which:||||||||||||
|Guarantees provided to the shareholders, substantial controllers and the related||||||||||||
||||||||0|||||
|parties (C)||||||||||||
|Guarantee provided directly or indirectly to objects with over 70% of liability||||||||||||
||||||||55,751|||||
|on asset ratio (D)||||||||||||
|The part of total amount of guarantee exceeded 50% of net asset (E)|||||||54,885|||||
|Total of the above 3 * (C+D+E)|||||||55,751|||||

 (1) Illegal providing of external guarantees
No illegal providing of external guarantees in the report period.
3. Other material contracts
No other material contract in the report period.
4. Other material trades
No other material trade in the report period.
IX. Filling of commitment issues
1. Commitment issues of shareholders with5% or over of theCompany’s shares occurred in the report period or carried down from previous period.
|||||||
|-|-|-|-|-|-|
|Commitmen|Party of|Content of|Date of|||
|||||Term of commitment|Status of fulfilling|
|t issues|commitment|Commitments|commitment|||
||According to the Order of Chongqing Securities Regulatory Bureau|||||
|Other|[2014]4号, the Company announced correction actions on the following||||The Company conducted clearing actions|
|commitment|issues: There is RMB140 million of goods-on-way aged 1-2 years amongst||||on the lists of delivery and sales in year|
|s to|the inventories of the Sales Company, which were generated by account||||2010, 2011, and 2012, and corresponding|
|mid-small|transferring at settlement. The Company didn‘t perform adjustment duly||||adjustments were done as of December|
|shareholders|when occurring. The Company commits there will be cleared and adjusted||||2014.|
||within 2014 and make sure the inventory information is accurate.|||||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
||||
|-|-|-|
||According to ―The Official Order for Chongqing Jianshe Motorcycle||
||Co., Ltd. to Rectify Inappropriate Operations‖ [2014]No.4 (referred as||
|||On April 23, 2015, the Board of|
||―The Order‖), the Company announced its rectification plans on September||
|||Directors adopted proposal to provide|
||12, and committed to implement the following measurements within given||
|||asset impairment provision and|
||times:||
|||neutralizing of related debts. It was|
||A number of unsettled receivable accounts, other receivable accounts,||
|||decided to provide provisions on the|
||and prepayment accounts amongst the 10 affiliated sales companies and||
|||receivable accounts and other receivable|
||over 200 direct-operated sales shops have been existed for a long period of||
|||accoutns under Sales Co., the|
||time. The Company commits to clarify those unrecoverable accounts by||
|||fully-owned subsidiary, and its branch|
||providing of bad debt provisions in full amounts before disclosing of the||
|||shops. (for details please go to|
||Annual Report 2014. As for those receivable accounts with long ages, the||
|||announcement released April 28, 2015)|
||Company will be performing accounting treatments under the verification||
||of legal departments.||
|Whether the|||
|commitment|||
||Yes||
|fulfilled|||
|duly|||

2. Statement on the situation of predicted profit on assets or projects, and actual results of the same[] Applicable;[V] Not applicable
X. Engaging or dismissing of CPAs
Current CPA
|||
|-|-|
|Domestic CPA|BDO China Shu Lun Pan Certified Public Accountants LLP|
|Reward for domestic CPA (RMB0‘000)|65|
|Successive years the domestic CPA has been||
||3 yrs|
|providing service to the Company||
|Name of CPAs from the domestic CPA firm|Liu Jinjin, Wan Ping|

Was the CPA been changed in the report period
[] Yes[V] No
Engaging of CPA for internal auditing, financial consultants or sponsors
The Company paid RMB200 thousand to Shu Lun Pan CPA Co., Ltd for its internal auditing service of oneyear.‘ XI. Statement of the Supervisory Committee and independent directors on the non-standardauditors’ report issued by the CPA
[] Applicable;[V] Not applicable
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text XII. Punishment and improvement
No punishment or improving approach in the report period.
XIII. Particulars about possible suspension or termination of stock trading upon releasing of this annual report
[] Applicable;[V] Not applicable
XIV. Statement on other material issues
No other material issues to be stated for the report period.
XV. Material issues of the subsidiaries
1. Air-conditioner Co.– full subsidiary of the Company, is planning to make investment of RMB18 million to expand and upgrade abilities in quality control and testing.
2. Air-conditioner Co.– full subsidiary of the Company, is planning to make investment of RMB103.41 million on the production enlarging project of rotator compressors.
For details of the above please go to Announcement 2014-063 and 2014-064 at www.cninfo.com.cn dated August 5, 2014.
XVI. Placing of corporation bonds
[] Applicable;[V] Not applicable
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter VI. Change of Share Equity and Shareholders
I. Statement of change in shares
1. Change of share equity
In shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Changed Currently (+,-)|||||After the change||
||||Issuing of|Bonus|Transferred||Sub-to|||
||Amount|Proportion||||Others||Amount|Proportion|
||||new shares|shares|from reserves||tal|||
|I. Shares with trade||||||||||
||89,375,000|74.87%|0|0|0|0|0|89,375,000|74.87%|
|restriction conditions||||||||||
|1. State-owned shares|0|0.00%|0|0|0|0|0|0|0.00%|
|2. State-owned legal||||||||||
||84,906,250|71.13%|0|0|0|0|0|84,906,250|71.13%|
|person shares||||||||||
|3. Other domestic shares|4,468,750|3.74%|0|0|0|0|0|4,468,750|3.74%|
|Incl. Shares held by||||||||||
||1,750,000|1.46%|0|0|0|0|0|1,750,000|1.46%|
|domestic legal persons||||||||||
|Domestic natural||||||||||
||2,718,750|2.28%|0|0|0|0|0|2,718,750|2.28%|
|person shares||||||||||
|4. Share held by foreign||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|investors||||||||||
|Incl. Shares held by||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|foreign legal persons||||||||||
|Foreign natural||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|person shares||||||||||
|II. Shares without trading||||||||||
||30,000,000|25.13%|0|0|0|0|0|30,000,000|25.13%|
|limited conditions||||||||||
|1. Common shares in RMB|0|0.00%|0|0|0|0|0|0|0.00%|
|2. Foreign shares in||||||||||
||30,000,000|25.13%|0|0|0|0|0|30,000,000|25.13%|
|domestic market||||||||||
|3. Foreign shares in||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|overseas market||||||||||
|4. Others|0|0.00%|0|0|0|0|0|0|0.00%|
|III. Total of capital shares|119,375,000|100.00%|0|0|0|0|0|119,375,000|100.00%|

 Causation of change in share equity
[] Applicable;[V] Not applicable
Approval of change in share capital
[] Applicable;[V] Not applicable
Situation of registration process of transferred shares
[] Applicable;[V] Not applicable
Influences of the change of share equity on financial indices such as basic earning per share, diluted earning per share, and net asset per share attributed to common shareholders:
[] Applicable;[V] Not applicable
Other information the Company thinks necessary or required by the authority to be disclosed
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text[] Applicable;[V] Not applicable
2. Change of Restricted Shares
[] Applicable;[V] Not applicable
II. Share placing and listing
1. Stock issuing in the latest three years up to the end of report period
[] Applicable;[V] Not applicable
2. Statements on change of total capital share and share structure and change of theCompany’s asset and liability structure
[] Applicable;[V] Not applicable
3. Currentemployees’ shares
[] Applicable;[V] Not applicable
III. Particulars about the shareholders and substantial controller
1. Amount of shareholders and their shareholding position
in shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Amount of|||||||
|Total common|||shareholders at|||Total of shareholders of preference||||
|shareholders at|||end of the 5th|||shares with restored voting power at||||
||11,143|||10,440|||||0|
|the end of the|||trading day prior|||end of report period (if any) (See||||
|report period|||to the date of this|||Note 8)||||
||||annual report|||||||
|Particulars about shareholders with over 5% of shares, or top 10 shareholders||||||||||
|||||||||Frozen or||
|||||Changed||||||
||||||Amount of||Amount of|pledged||
|Name of the|Properties of|Share|Shares held at the|in the||||||
||||||unconditional||unconditional|Status||
|shareholder|shareholder|proportion %|end of report term|report||||||
||||||shares held||shares|of|Amount|
|||||period||||||
|||||||||shares||
|China SouthernIndustry GroupCo., Ltd.|State-owned legalperson|71.13%|84,906,250|0|84,906,250||0|||
|Gu Zuocheng|Domestic naturalperson|1.89%|2,261,000|0|2,218,750||42,250|||
|AnhuiHengshengEconomicDevelopmentGroup Co., Ltd.|Domesticnon-state-ownedlegal person|1.47%|1,750,000|0|1,750,000||0|||
|Feng Yonghui|Domestic naturalperson|0.42%|500,000|0|500,000||0|||
|Shanghai HongKong WanguoSecurities|Overseas legalperson|1.05%|1,256,800|844800|0||1,256,800|||
|Liu Dan|Domestic natural|0.90%|1,069,301|1069276|0||1,069,301|||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
||||||||
|-|-|-|-|-|-|-|
||person||||||
|Zeng Qinghua|Domestic naturalperson|0.36%|431,601|431601|0|431,601|
|Hu Zhihong|Domestic naturalperson|0.31%|366,864|39200|0|366,864|
|Chen Houping|Domestic naturalperson|0.29%|343,615|150043|0|343,615|
|Guo Dongjiang|Domestic naturalperson|0.29%|343,435|311235|0|343,435|
|||There isn‘t any associated relationship between the sponsoring shareholder and the other|||||
|Notes to relationship or “action in|||||||
|||shareholders among the top-10 list. None of them are regarded as ‗Acting in concert‘ in|||||
|concert” among the top ten|||||||
|||accordance with ‗The rules of information disclosure on change of shareholding.‘ Foreign|||||
|shareholders.|||||||
|||shareholders are unknown for their condition of ‗Associated relationship‘ and ‗Acting in concert‘.|||||

|||||
|-|-|-|-|
|Top 10 holders of unconditional shares||||
||Amount of unconditional|Category of shares||
|Name of the shareholder||||
||shares held at end of period|Category of shares|Amount|
|Shanghai Hong Kong WanguoSecurities|1,256,800|||
|||Foreign shares placed in domestic exchange|1,256,800|
|Liu Dan|1,069,301|Foreign shares placed in domestic exchange|1,069,301|
|Zeng Qinghua|431,601|Foreign shares placed in domestic exchange|431,601|
|Hu Zhihong|366,864|Foreign shares placed in domestic exchange|366,864|
|Chen Houping|343,615|Foreign shares placed in domestic exchange|343,615|
|Guo Dongjiang|343,435|Foreign shares placed in domestic exchange|343,435|
|Zhao Yun|340,885|Foreign shares placed in domestic exchange|340,885|
|Zhang Huai‘an|330,000|Foreign shares placed in domestic exchange|330,000|
|Xue Fang|250,000|Foreign shares placed in domestic exchange|250,000|
|CREDIT SUISSE (HONGKONG) LIMITED|230,430|||
|||Foreign shares placed in domestic exchange|230,430|
|Action-in-concert among top||||
||There isn‘t any associated relationship between the sponsoring shareholder and the other|||
|10 non-restricted current share||||
||shareholders among the top-10 list. None of them are regarded as ‗Acting in concert‘ in accordance|||
|holders, top 10 non-restricted||||
||with ‗The rules of information disclosure on change of shareholding.‘ Foreign shareholders are|||
|current share holders and top||||
||unknown for their condition of ‗Associated relationship‘ and ‗Acting in concert‘.|||
|10 shareholders||||

Whether there was any repurchasing deal made between any of the top 10 shareholders and top 10 holders of unrestricted shares in the report period
[] Yes[V] No
There was not any repurchasing deal made between any of the top 10 shareholders and top 10 holders of unrestricted shares in the report period
2. Particulars about the controlling shareholder
Corporation
|||||||
|-|-|-|-|-|-|
|Name of the holding|Legal||Organization|||
|||Incorporated in||Registered capital|Main businesses|
|shareholder|representative||code|||
||||||Investment and|
|China Southern Industry||||||
||Tang Dengjie|June 29 1999|71092604-3|17,469,680,000|operation of state-owned|
|Group Co., Ltd.||||||
||||||assets|
||China Southern Industry Group will be facing the new opportunities, further promote reformation and|||||
|Strategy for coming years|upgrading, to make the Group a competitive enterprise ally in the equipment building field of the|||||
||country and overseas.|||||
|Business performance,|As of December 31, 2014, China Southern Group Co., Ltd. possessed of RMB346.047 billion of total|||||
|financial status and cash|asset, RMB10.4732 billion of net asset, RMB42.5976 billion of total turnover, and RMB12.08 billion of|||||
|flow|net profit. The net cash flow from business operation was RMB3.9490 billion.|||||
|Shareholding status of the|Holding of other PLC‘s shares, directly or indirectly|||||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
|||
|-|-|
|holding shareholder in|1. Chongqing Changan Automobile Co., Ltd. 40.25%；|
|other PLCs in the country|2. Jiangling Automobile Co., Ltd. 41.03%；|
|and abroad during the|3. Baoding Tianwei Baobian Electronics Ltd. 56.43%;|
|report period|4. China Jialing Industry Co., Ltd. 22.34%；|
||5. Huhan Tianyan Machinery Co., Ltd. 31.43%；|
||6. Haerbin Dongan Automobile Power Co., Ltd. 54.51%；|
||7. Yunnan Xiyi Industry Co., Ltd. 65.83%；|
||8. Zhongyuan Special Steel Co., Ltd. 78.15%；|
||9. Chongqing Changan Minsheng Logistics Co., Ltd. 25.44%;|
||10. Lida Optical-electronic Co., Ltd. 44.92%.|

Change of holding shareholder
No change of holding shareholder in the report period.
3. Substantial controller of the Company
Corporation
|||||||
|-|-|-|-|-|-|
||Legal|Incorporated|Organization|Registered|Main|
|Name of the substantial controller||||||
||representative|in|code|capital|businesses|
|State-owned Asset Supervisory &||||||
|Administration Committee||||||
|Strategy for coming years|Not applicable|||||
|Business performance, financial status and cash||||||
||Not applicable|||||
|flow||||||

Change of substantial controller
No change of substantial controller in the report period.
Chart of the controlling relationship between the practical controller and the Company
State-owned Asset Administration
Committee of the National Government
100%
China Southern Industry Group
71.13%
Chongqing Jianshe Motorcycle Co., Ltd.
Whether the substantial controller is controlling the Company through trusteeship or other asset management
service
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text[] Applicable;[V] Not applicable
4. Corporation shareholders with over10% of theCompany’s shares
[] Applicable;[V] Not applicable
IV. Proposals raised by the shareholders or their action-in-concert parties about increasing of shareholding
[] Applicable;[V] Not applicable
To the knowledge of the Company, there is not any proposal raised by the shareholders or their action-in-concert parties about increasing of shareholding.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter VII. Particulars about Preference Shares
No preference shares in the Company.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter VIII. Directors, Supervisors, Senior Executives and Employees
I. Change of shareholding of directors, supervisors and senior executives
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Shares||||
|||||||||Shares|Shares||
||||||||holding at|||Shares held|
|||Status of||||||increased|decreased||
|Name|Position||Gender|Age|Job started|Job ended|the|||at the end of|
|||service||||||this term|this term||
||||||||beginning of|||term|
|||||||||(shares)|(shares)||
||||||||term (shares)||||
||||||Nov 27,||||||
|Li Huaguang|Chairman|On duty|M|49||2017.05.30.|0|0|0|0|
||||||2009||||||
||||||Nov 27,||||||
|Lu Hongxian|Director, GM|On duty|M|45||2017.05.30.|0|0|0|0|
||||||2009||||||
||Director, secretary||||||||||
|Yan|general of CCP||||Nov 27,||||||
|||On duty|M|51||2017.05.30.|0|0|0|0|
|Xuechuan|committee, chairman of||||2009||||||
||trade union||||||||||
||||||May 25,||||||
|Ni Erke|Director|On duty|M|41||2017.05.30.|0|0|0|0|
||||||2012||||||
||Director, vice general||||||||||
|Teng Feng|manager, CFO,|On duty|M|43|Apr 29, 2008|2017.05.30.|0|0|0|0|
||secretary of the Board||||||||||
|Tang|||||||||||
||Employee Director|On duty|M|46|May 30 2011|2017.05.30.|0|0|0|0|
|Wenquan|||||||||||
|Hao Lin|Director|On duty|M|52|Apr 29, 2008|2017.05.30.|0|0|0|0|
||||||May 23,||||||
|Li Dingqing|Independent Director|On duty|M|51||2017.05.30.|0|0|0|0|
||||||2014||||||
||||||May 23,||||||
|Peng Yu|Independent Director|On duty|F|60||2017.05.30.|0|0|0|0|
||||||2014||||||
||||||May 23,||||||
|Li Jiaming|Independent Director|On duty|M|49||2017.05.30.|0|0|0|0|
||||||2014||||||
||||||May 23,||||||
|Liu Zhiqiang|Independent Director|On duty|M|34||2017.05.30.|0|0|0|0|
||||||2014||||||
|Chen||||||May 23,|||||
||Independent Director|Resigned|M|52|Apr 29, 2008||0|0|0|0|
|Xingshu||||||2014|||||
|||||||May 23,|||||
|Wang Jun|Independent Director|Resigned|M|52|Apr 29, 2008||0|0|0|0|
|||||||2014|||||
|||||||May 23,|||||
|Yu Jianfeng|Independent Director|Resigned|M|44|Apr 29, 2008||0|0|0|0|
|||||||2014|||||
|Cheng||||||May 23,|||||
||Independent Director|Resigned|M|50|Apr 29, 2008||0|0|0|0|
|Yuanwei||||||2014|||||
||Chairman of the||||May 25,||||||
|Zha Changli||On duty|M|50||2017.05.30.|0|0|0|0|
||supervisory committee||||2012||||||
|Tan|||||May 25,||||||
||Supervisor|On duty|M|41||2017.05.30.|0|0|0|0|
|Mingxian|||||2012||||||
||||||May 25,||||||
|Liu Li|Supervisor|On duty|M|46||2017.05.30.|0|0|0|0|
||||||2012||||||
|Tao Xuqian|Employee Supervisor|On duty|M|49|Mar 20 2010|2017.05.30.|0|0|0|0|
|Lv Cuiwei|Employee Supervisor|On duty|F|46|May 30 2011|2017.05.30.|0|0|0|0|
|Wen Hong|Vice General Manager|On duty|M|48|Apr 29, 2008|2017.05.30.|0|0|0|0|
|Yu Jiang|Vice General Manager|On duty|M|43|Apr 29, 2008|2017.05.30.|0|0|0|0|
|Yu Wenbiao|Vice General Manager|On duty|M|48|July 26, 2012|2017.05.30.|0|0|0|0|
|Fan Aijun|Vice General Manager|On duty|M|43|Oct 17 2014|2017.05.30.|0|0|0|0|
|Liu Hui|Vice General Manager|Resigned|M|45|Aug 11 2009|2014.10.16.|0|0|0|0|
|Total|--|--|--|--|--|--|0|0|0|0|

 II. Status of service
Working experiences of current directors, supervisors, and executives in the past five years
Li Huaguang: Once worked for Jialing Group as head of QC dept., and head of personnel dept.; for Jialing
Industrial Co., Ltd. as standing commissioner of CCP committee, head of HR dept., vice headmaster of CCP
school, vice chief secretary of CCP division, and chairman of union; for China Jianling Industrial Co., Ltd. (Group)
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Co., Ltd. as the general manager, chief secretary of CCP committee, chairman of union; and for Chongqing Jialing Special Equipment Co., Ltd. as chief secretary of CCP committee, and chairman of union. At presenthe‘s the chairman and general manager of Southern Motorcycle, chairman of the Company.
Lu Hongxian: Once worked for Jianshe Industrial (Group) Co., Ltd. (Jianshe Group) as vice head of promotion dept., head of CCP office, head of HR division of CCP committee, assistant to the general manager, vice chief secretary of CCP committee, director, chief secretary of CCP committee, and chairman of the union; for the Company as chief secretary of the CCP committee, chairman of the Supervisory Committee, and director; for Jinan Qinqi as general manager. At presenthe‘s the general manager and director of the Company.
Yan Xuechuan: Once he worked for Southern Group as technician of factory 5618, vice director of HR dept., vice chief accountant, director of planning dept., vice factory manager and vice chief secretary of CCP committee, chief secretary of discipline committee, and chief secretary of CCP committee; for Hunan Southern China Electro-optical (Group) Co., Ltd. as director, chief secretary of CCP committee; standing commissioner of CCP Dandong city committee, vice mayor, and commissioner of CCP committee. At presenthe‘s the director, chief secretary of CCP committee, and chairman of the union.
Ni Erke: once the head of financial dept. ofChang‘an Auto, assistant to general manager and head of auditing dept. of Nanfang Motorcycle, vcie general manager of sales co. of Nanfang Motorcycle. At presenthe‘s the chief accountant, director assigned by Nanfang Motorcycle, and director of the Company.
Teng Feng: Once was head of Accounting Division; Assistant to General Manager of Jianshe Group; Assistant to General Manager of Jianshe Industry; Vice General Manager of Motorcycle Business Division of the Company. At presenthe‘s director of Jianshe Industry; At presenthe‘s the Director, Vice General Manager, Head of
Accounting, and secretary of Board of the Company.
Hao Lin: At presenthe‘s Chairman of Chongqing Tongkang Technologies Co., Ltd., and Director of the Company. Tang Wenquan: once the vice chief and CCP secretary of workshop 52 of Jianshe Group, CCP vice secretary, vice general manager, and general manager of Jianshe Nanhai, chief of workshop 51 and 52 of the engine factory, director of technical department of engine division, quality control department, vice general manager of engine division, vice director of business planning department. At presenthe‘s the chief of business planning department and employee director.
Li Dingqing: once vice head of financial office of Chongqing Business School; vice chief of Accounting Dept. of Chongqing Business School; vice dean of Accounting Dept.; dean of Technical Dept. At presenthe‘s the dean of Accounting Dept. of Chongqing University of Business; independent director of the Company, Yushanxia A, and Gaojin Food.
Pengyu: Once he was accountant of Supply& Sales Dept of Chengdu Coal Industry Administration; assistant professor of History School of Chongqing Normal University; lecturer of Southwestern University of Agriculture. At presenthe‘s the head of Business& Management School of Southwestern University; independent director of the Company, Tongjunge, and Southwestern Pharmacy.
Li Jiaming: Once the leading researcher of Economics School of Chongqing Industry& Business University; vice head of Accounting Dept. of Business Management School of Chongqing University; vice manager of discipline office of Chongqing University; General manager of Chongqing University Technology Enterprise Group; Head of MPA center of Chognqing University. Vice dean of Municipal Science& Technology School of Chongqing University. Currentlyhe‘s professor of Chongqing University, and independent director of the Company, Guangxi Liugong Machinery, and Yukaifa (A).
Liu Zhiqiang: Once he was the clerk of Shanghai Bureau of Finance and Chongqing International Trade
Commission; assistant of the head of Chongqing Beibei Tiansheng Community Office. Currentlyhe‘s associated professor of Southwestern University Politics and Law; partner of Taihetai Law Firm, and independent director of the Company and Huashen Group.
Zha Changli: once chief of workshop 909 of Jialing Machinery Factory; manager of oil tank factory of China Jialing; general manager of Chongqing Yiji Co.; general manager of Chongqing Haiyuan Co.; vice general manager, director, CCP secretary, chairman of trade union of China Jialing. Currently chairman of supervisory committee of the Company.
Tan Mingxian: once head of accounting dept. of Chongqing Wangjiang Industry Co., Ltd.; chief accountant of Sichuan Xiguang Industry (Group) Co., Ltd.; vice head of financial dept. of ChongqingChang‘an Industry (Group)
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Co., Ltd.; vice chief accountant of Chongqing Wangjiang Industry Co., Ltd. Currently manager of supervisory office of Nanfang Motorcycle; chief financial officer of Southern MotorcycleR&D Co., supervisor of the
Company, China Jialing, Jinan Qingqi, and Luoyang Northern Group.
Liu Li: once accountant of Jialing Machinery Factory; head of financial dept. of Hainan Jiatai Motorcycle Co., Ltd.; head of financial dept. of Chongqing Changjiang Sanxia Market (Special Vehicle Division); chief financial officer of Chongqing Huangjia Hotel; vice head of finance dept. of China Jialing. Currently head of auditing dept. of Nanfang Motorcycle; Supervisor of the Company.
Tao Xuqian: Once worked for Jianshe Group as vice director of discipline office, vice head of supervisory division; for Jianshe Industry as vice director of discipline office, and vice head of supervisory division; for the Company as vice head of CCP public relationship division, head of supervisory division. At presenthe‘s the vice chief secretary of discipline division, office manager of discipline division and head of supervisory division, employee supervisor of the Company.
Lv Cuiwei: once secretary of Youth Party of Jianshe Group, office manager of CCP office, PR director of CCP party of Jianshe Industry, vice dean of party school, director of PR office of CCP committee. At presentshe‘s the director of Auditing and Legal department,employees‘ supervisor of the Company.
Wen Hong: Once he was the Manager of Tools Co., Vice Office Manager of Jianshe Industry (Group) Co., Ltd.; Vice General Manager of Sales Co. of the Company. He is currently the General Manager of Sales Co., and Vice General Manager of the Company.
Yu Jiang: Oncehe‘s the Vice Chief of Factory No.3 of Jianshe Industry (Group) Co., Ltd.; Manager of Engine Co. of Shenzhen Jianshe Motorcycle Co.; Director of Quality Division of the Company; Vice Office Manager of Jianshe Group; Director of Technical Center of the Company. At presenthe‘s the Vice General Manager of the Company.
Yu Wenbiao: once technician of Jianshe Machinery Factory; vice manager of workshop 61, vice head of
development planning dept., manager of Beijing office, vice head of business operation dept., vice head and head of development planning dept., head of cooperation dept. of Jianshe Group; assistant to general manager, head of capital operation dept. of Jianshe Industry; secretary of board of the Company; vice general manager and CCP secretary of Zhuzhou Jianya. Currently vice general manager of the Company.
Fan Aijun, once technician of workshop 53, office secretary, vice head of general office, vice head of
administration office; vice general manager of Fanying-Jianshe; head of overseas sales division of Chongqing Jianya; vice head and head of assembling office; head of assembling department of the Company, vice general manager of Air-conditioner Co. At presenthe‘s general manager of Air-conditioner Co., and vice general manager. Jobs taken in shareholding parties
|||||||
|-|-|-|-|-|-|
|||||Job|Take remunerations from the|
|Names|Name of the shareholder|Job taken|Job started|||
|||||ended|shareholding party|
|Li|Southern Motorcycle (subsidiary of the|||||
|||Chairman, GM|Oct 1 2013||Yes|
|Huaguang|holding shareholder)|||||
||Southern Motorcycle (subsidiary of the|Chief Accountant,|Mar 01|||
|Ni Erke|||||Yes|
||holding shareholder)|director|2011|||
|Hao Lin|Chongqing Tongkang Technologies Co., Ltd.|Chairman|Jan 1, 2001||Yes|
|Tan|Southern Motorcycle (subsidiary of the|Supervisory office|January 1,|||
||||||Yes|
|Mingxian|holding shareholder)|manager|2012|||
|Tan|Southern Motorcycle R&D Co. (Subsidiary of||January 1,|||
|||Supervisor, CFO|||Yes|
|Mingxian|the holding shareholder)||2012|||
|Tan|China Jialin (Subsidiary of the controlling||January 1,|||
|||Supervisor|||Yes|
|Mingxian|shareholder)||2012|||
|Tan|Jinan Qinqi (Subsidiary of the controlling||January 1,|||
|||Supervisor|||Yes|
|Mingxian|shareholder)||2012|||
|Tan|Luoyang Northern (Subsidiary of the||January 1,|||
|||Supervisor|||Yes|
|Mingxian|controlling shareholder)||2012|||
||Jinan Qinqi Suzuki Motorcycle Co., Ltd. (joint|Vice General|Nov 1|||
|Liu Li|||||Yes|
||venture of the holding shareholder)|Manager|2013|||

Jobs taken in other parties
|||||||
|-|-|-|-|-|-|
|Names|Name of the parties|Positions|Job started|Job|Take remunerations from|

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text
|||||||
|-|-|-|-|-|-|
|||||ended|the party|
|Li|Accounting School, Chongqing University ofBusiness & Industry||Dec 312012|||
|||Dean|||Yes|
|Dingqing||||||
||Business & Management School, SouthwesternUniversity||May 72014|||
|Peng Yu||Head of dept.|||Yes|
|||Director of auditing|Dec 30,|||
|Li Jiaming|University of Chongqing||||Yes|
|||section|2011|||
|Liu|||May 312012|||
||Tai He Tai Law Firm|Partner|||Yes|
|Zhiqiang||||||

III. Annual Remunerations of the Directors, Supervisors and Senior Executives
Decision-making, basis of assessment, and actual payment of remunerations of the Directors, Supervisors and Senior Executives
The Company gives rewards to executives on annual basis which consist of basic annual rewards and performance rewards. Basic annual rewards are paid on monthly basis and performance rewards are distributed basing on the annual assessment on their performances and duties as well as democratic assessment.
Remuneration of directors, supervisors, and executives in the report period
In RMB10 thousand
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Total of reward||
||||||Total of reward||Actual reward|
|||Gende||Status of||from||
|Name|Position||Age||from the||in total at end|
|||r||service||shareholding||
||||||Company||of report term|
|||||||parties||
|Li Huaguang|Chairman|M|49|On duty|0|41.61|41.61|
|Lu Hongxian|Director, GM|M|45|On duty|39.76|0|39.76|
||Director, secretary general of CCP|||||||
|Yan Xuechuan||M|51|On duty|37.61|0|37.61|
||committee, chairman of trade union|||||||
|Ni Erke|Director|M|41|On duty|0|32.6|32.6|
||Director, vice general manager, CFO,|||||||
|Teng Feng||M|43|On duty|27.77|0|27.77|
||secretary of the Board|||||||
|Tang Wenquan|Employee Director|M|46|On duty|12.94|0|12.94|
|Hao Lin|Director|M|52|On duty|0|0|0|
|Li Dingqing|Independent Director|M|51|On duty|1.5|0|1.5|
|Peng Yu|Independent Director|F|60|On duty|1.5|0|1.5|
|Li Jiaming|Independent Director|M|49|On duty|1.5|0|1.5|
|Liu Zhiqiang|Independent Director|M|34|On duty|1.5|0|1.5|
|Chen Xingshu|Independent Director|M|52|Resigned|1.5|0|1.5|
|Wang Jun|Independent Director|M|52|Resigned|1.5|0|1.5|
|Yu Jianfeng|Independent Director|M|44|Resigned|1.5|0|1.5|
|Cheng Yuanwei|Independent Director|M|50|Resigned|1.5|0|1.5|
||Chairman of the supervisory|||||||
|Zha Changli||M|50|On duty|27.02|0|27.02|
||committee|||||||
|Tan Mingxian|Supervisor|M|41|On duty|0|21.9|21.9|
|Liu Li|Supervisor|M|46|On duty|0|24.67|24.67|
|Tao Xuqian|Employee Supervisor|M|49|On duty|10.09|0|10.09|
|Lv Cuiwei|Employee Supervisor|F|46|On duty|10.75|0|10.75|
|Wen Hong|Vice General Manager|M|48|On duty|27.86|0|27.86|
|Yu Jiang|Vice General Manager|M|43|On duty|27.88|0|27.88|
|Yu Wenbiao|Vice General Manager|M|48|On duty|27.71|0|27.71|
|范爱军|Vice General Manager|M|43|On duty|11.22|0|11.22|
|Liu Hui|Vice General Manager|M|45|Resigned|27.03|0|27.03|
|Total|--|--|--|--|299.64|120.78|420.42|

 Incentive shares granted to directors, supervisors, and executives in the report period.
[] Applicable;[V] Not applicable
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text IV. Variation of directors, supervisors, and executives
||||||
|-|-|-|-|-|
|Name|Jobs taken|Type|Date|Causation|
|Li Dingqing|Independent Director|Elected|May 23, 2014||
|Peng Yu|Independent Director|Elected|May 23, 2014||
|Li Jiaming|Independent Director|Elected|May 23, 2014||
|Liu Zhiqiang|Independent Director|Elected|May 23, 2014||
|Chen Xingshu|Independent Director|Expiration of term|May 23, 2014||
|Wang Jun|Independent Director|Expiration of term|May 23, 2014||
|Yu Jianfeng|Independent Director|Expiration of term|May 23, 2014||
|Cheng Yuanwei|Independent Director|Expiration of term|May 23, 2014||
|Fan Aijun|Vice General Manager|Engaged|October 17, 2014||
|Liu Hui|Vice General Manager|Dismissed|Oct 16 2014|Change of job|

V. Alternation of key technical teams or personnel (other than directors, supervisors and executives)
No change on key technical team or personnel in the report period.
VI. Employees of the Company
(I) Workforce composition
AS of December 31, 2014, the Company has 2100 registered employees, including 145 under Jianshe Sales, 34 under Import& Export Co., 450 under Auto Air-conditioner Co.– the fully owned subsidiaries. There were 94 retired employees.
Composition in professions
||||||||
|-|-|-|-|-|-|-|
|Division|No. of employees|Admin|Tech|Marketing & sales|Supplementary|Production|
|Parent company|1471|302|258|13|133|765|
|Sales Co.|145|33|4|92|13|3|
|Import & Export Co.|34|8|3|22|1|0|
|Auto Air-conditioner Co.|450|72|117|20|29|212|
|Total|2100|415|382|147|176|980|

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text On Education Background
|||||||
|-|-|-|-|-|-|
|Division|No. of|Master|Bachelor|College|High school, technical school, and|
||employees|||diploma|lower|
|Headquater|1471|44|306|321|800|
|Sales Co.|145|2|32|57|54|
|Import & Export Co.|34|2|26|4|2|
|Auto Air-conditionerCo.|450|8|155|117|170|
|Total|2100|56|519|499|1026|

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text (II) Employee remuneration
The Company adopted remuneration system basing on working performances, covering performances of
individuals, departments, and the whole company. Wages are allocated according to the assessment results and accomplishment indices. Calculating and delivering of remunerations are conducted directly by the Company, and secondary allocation is conducted by subsidiaries with consideration of sales and profitability.
(III) Employee training
The Company implemented 58 internal training programs in the year (including 54 scheduled programs with 4732 participants, and 4 supplementary programs with 163 participants), as well as 40 external training programs with 320 participants. Average training hours per person has increased by7%. Training programs were mainly
covering foremanship, technique, and multi-task.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Chapter IX. Administration
I. Fundamental Situation of Company Administration
1. Independency
The Company is independent, in terms of personnel, asset, finance, organization, and business operation, from the holding shareholder. It maintains its account and assume responsibilities and risks independently. No capital appropriation by the holding shareholder nor its related parties, no providing of financial aids in whatsoever form of capital to these parties. All related transactions were conducted and disclosed appropriately by legal procedures. 2. Shareholders andshareholders‘ meetings
TheCompany‘s Articles of Association and theShareholders‘ Meeting Criteria have been guarding the shareholders, especially mid-small shareholders, of their legal rights and equal ground. In the report period, the Company has been executing the legal procedures of calling and holding of theshareholders‘ meetings. Proposals and resolutions of the meetings were disclosed properly. Online voting system was provided to the shareholders along with onsite voting at decision making of capital reducing, stock drawing back, and asset transferring. 3. Directors and the Board
Composition of the Board was complying with the laws and regulations. The Board Meeting Criteria was introduced to ensure scientific and formalized decision-making process. Committees of Strategy, Auditing, Nomination, Remuneration and Assessment were formed within the Board and have been providing professional suggestions to the Board. Independent directors were engaged to guard the rights of shareholders. Totally seven board meetings were held in the report period, and was working effectively in decision making.
4. Supervisors and the Supervisory Committee
The Company introduced the Supervisory Committee Meeting Criteria to regulate the composition as required by laws and regulations. The Committee was appropriately informed about theCompany‘s business information and supported to fulfill its responsibilities. In the report period, the Committee performed effective inspection on the significant events, related transactions, financial position, internal control, and legal operation of the Directors and executives.
5. Information disclosure
In the report period, according to the regulations about information reporting and state-owned asset administration, the Company reported the sales information and financial information to the local authorities, namely Chongqing Economic Information Commission, Chongqing Banan Bureau of Statistics, and the holding shareholder. According to the Rules of Providing External Information and Information Insider Registration Criteria, the Company has registered the organizations and individuals who had access to the aforesaid information, and assured them to assume confidentiality responsibilities.
To assure fairness in information disclosure, and all shareholders may get access to the information equally, the Company disclosed voluntarily the information filed to the authorities by official media on monthly basis. No information leakage occurred in the report period which could lead to irregular fluctuation of stock price.
Introducing and revising of regulations in the period.
||||||
|-|-|-|-|-|
|No.|Name of the criteria|Meeting on which the|Date of disclosure|Disclosing|
|||regulations are approved||media|
|1|Composition of ―Administrationof Full-range Budget‖|The 3rd meeting of the 7thterm of Board|Sept 12, 2014|www.cninfo.com.cn|

Is there any difference between the management practice and the regulations of the Company Law and CSRC
[V]Yes[] No
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text Statement on difference between the management practice and the regulations of the Company Law and CSRC. Chongqing Office of CSRC inspected the Company in the year and issued The Order of Rectification for Chongqing Jianshe Motorcycle Co., Ltd.[2014]4. The Company had been doing its all efforts to locate the causations of problem and provided rectification plan according to theCompany‘s actual situation. For details and result report of the issue please go to Announcement 2014-078 issued by the Company on September 12, 2014. Executing of special administration activities and Registration and Administration Rules of Information Insiders The Company has introduced the Information Insider Registration Rules. In the report period, conducted information registration on each individual event when implementing the stock drawback, asset transferring, periodic report and business forecast. None of the users of the information has been found using them in any illegal trading, no leaking of inside information, and the Company has not been under punishment or criticize by the supervisory authorities regarding default in information insider registration or any under-the-table trade. II.Shareholders’ Annual Meeting and the provisional meetings in the report period
1.Shareholders’ Annual Meeting in the report period
|||||||
|-|-|-|-|-|-|
||Date of|||Date of|Index of|
|No. of meeting||Titles of proposals|Resolutions|||
||meeting|||disclosure|information disclosure|
|||Board of Directors‘ Report 2013 andIndependent Directors‘ Report 2013;Supervisory Committee‘s Report 2013;Annual Report 2013 and SummaryDividend Plan 2013;Proposal on Extending the Service of CPAand Auditor of Internal Control to Year||||
|||||For details please find the Resolutions of||
|Shareholders‘||||||
||May 23,|2015;|Passed by|Shareholders‘ Meeting 2013, Announcement||
|Annual Meeting||||||
||2014|Proposal on Routine Related Transactions|voting|2014-048 at http://www.cninfo.com.cn dated||
|2013||||||
|||Predicted for Year 2014;Proposal on External Guarantees 2014;Proposal of Term-shifting of the Board ofDirectors;Proposal of Term-shifting of theSupervisory Committee.||May 24, 2014||

2. Provisionalshareholders’ meetings in the report period
|||||||
|-|-|-|-|-|-|
||Date of|||||
|No. of meeting||Titles of proposals|Resolutions|Date of disclosure|Index of information disclosure|
||meeting|||||
|The 1st||||For details please find the Resolutions of the 1st||
|||Proposal on accepting of||||
|Shareholders‘|||Passed by|Provisional Shareholders‘ Meeting 2014,||
||Jan 24 2014|financial services and||||
|Provisional Meeting|||voting|Announcement 2014-009 at http://www.cninfo.com.cn||
|||related transactions||||
|2014||||dated January 25, 2014||
|||Proposal on the actual||||
|||amount of external||||
|||guarantee provided in 2014;||||
|The 2nd||||For details please find the Resolutions of the 2nd||
|||Proposal on construction of||||
|Shareholders‘|September||Passed by|Provisional Shareholders‘ Meeting 2014,||
|||testing facilities;||||
|Provisional Meeting|5, 2014||voting|Announcement 2014-073 at http://www.cninfo.com.cn||
|||Proposal on production||||
|2014||||dated Sept 6, 2014||
|||expanding project of rotator||||
|||air-conditioner compressor.||||

Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text 3. Provisionalshareholders’ meeting called by preference shareholders
[] Applicable;[V] Not applicable
III. Fulfilling of duties of the Independent Directors in the report period
1. Independentdirectors’ presenting of board meetings
||||||||
|-|-|-|-|-|-|-|
|Independent directors‘ presenting of board meetings|||||||
|Name of|||||||
||Meetings to attend in|Actually|Attended by way|Presented by||Not attend the meetings for|
|Independent|||||Absented||
||the report period|attended|of telecom|proxy||successively 2 times|
|Director|||||||
|Chen Xingshu|2|2|0|0|0|No|
|Wang Jun|2|2|0|0|0|No|
|Yu Jianfeng|2|2|0|0|0|No|
|Cheng Yuanwei|2|1|0|1|0|No|
|Li Dingqing|4|3|1|0|0|No|
|Peng Yu|4|2|1|1|0|No|
|Li Jiaming|4|3|1|0|0|No|
|Liu Zhiqiang|4|3|1|0|0|No|
|Observation of shareholders‘ meetings by|||||||
|||3|||||
|independent directors|||||||

2. Objection upon relative events raised by the independent directors
None of the independent directors has raised objective opinions on decision-making issues
3. Other remarks on independentdirectors’ fulfilling of duties
Whether the suggestions of independent directors have been adopted
[V]Yes[] No
Remarks on acceptance or rejection of the suggestions raised by independent directors
During the year 2014, the independent directors have faithfully performed their duties, safeguarded the Company's interests and really protect the rights and interests of middle and small investors strictly according to relevant laws and regulations since they came into office. Within the scope of their powers and functions, they participated in the decision making of the board of directors of the Company. They provided suggestions on business operation, administration, as well as the internal control system, covering aspects of product upgrading, financial expense reducing, and lifting of capital efficiency. The Company has adopted most of the suggestions and doing its best effort to improve its management.
IV. Fulfilling of duties by the Special Committees under the Board of Directors
Fulfilling of duties of the committees from the date of previous annual report to the date before this report:
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text (I) The Auditing Committee held two meetings according to the Auditing Committee Working Criteria and Auditing Committee Annual Report Working Procedures. They were:
1. The Auditing Committee held its 1st meeting of 2015 on January 15, 2015. The financial statements of 2014 provided by the accounting department was examined at the meeting. The Auditing Committee deems the financial statements were complying with the Enterprise Accounting Standard, the accounting policies and estimations were reasonable, and they were reflecting the situations regarding assets, business performance, and cash flow in the report term. It is approved to submit to the CPA.
2. The Auditing Committee conducted communication with the CPAs in the auditing process. On April 9, 2015, the CPA provided initial opinions to the Company. April 10, 2015, the Auditing Committee convened the 2nd meeting of 2015, and examined again on the financial statements, and deemed: Preparing of the financial statements were complying with the Enterprise Accounting Standard, expenses were reasonable, recognition of gains, expenses and profit were complying with the laws, regulations and relative rules, and frankly, completely reflecting the financial situation, business performance and cash flow of the Company. It was approved to be submitted to the Board of Directors.
The meeting also summarized the auditing works of 2014 done by the CPA: Shu Lun Pan Certified Public Accountants conducted the auditing works responsibly and diligently according to the China CPA Standard, and issued opinions on the accounting statements objectively and fairly. The Committee suggested to extend the services of Shu Lun Pan Certified Public Accountants as the auditor of 2015. With reference to the payment to the CPA in previous years and the wildly accepted level in this territory, the Committee suggested RMB650 thousand and RMB200 thousand of auditing fee for financial reports and internal control system respectively to the CPA. 3. The Auditing Committee held its 3rd meeting of 2015 on April 21, 2015. The proposal of providing of asset impairment provision and neutralizing of some debts was examined. The meeting came out with the resolution that the proposed operations were complying with the Enterprise Accounting Standard. Providing of asset impairment provision on prudential basis would enable the financial reports to reflect the financial situation and asset value more objectively and fairly. It was approved to be submitted to the Board of Directors.
(II) The Strategy Committee held its 1st meeting of 2015 on April 10, 2015, on which the commissioners discussed the overall business environment, industrial trend, advantages and problems of the Company, and formulated the development strategies of year 2015 as well as of the following three years.
(III) The Remuneration and Assessment Committee held its 1st meeting of 2015 on April 10, 2015. The Committee performed assessment on theexecutives‘ performance according to the Assessment and Incentive Scheme, and came out with the resolution that the reward scheme of year 2014 was complying with the regulations and practical situation.
(IV) The Nomination Committee held the 2nd meeting of 2014 on May 4, 2014. The committee inspected the qualifications of candidates of General Manager, Vice General Managers, Financial Officer, Secretary of the Board, and head of internal auditing office. None of the candidates was applicable to Article 147 of the Company Law; under punishment by CSRC in the latest three years; or criticized by the Shenzhen Stock Exchange for three times or over in the latest three years. Therefore the candidates were qualified for their respective positions according to the Stock Listing Rules of Shenzhen Stock Exchange and the Articles of Association of the Company. It was agreed to submit the nomination to the Board.
The Nomination Committee held the 3rd meeting of 2014 on October 9, 2014. The committee inspected the qualifications of Mr. Fan Aijun - candidates of Vice General Manager. The candidates was not applicable to any situation provided by Article 147 of the Company Law; under punishment by CSRC in the latest three years; or criticized by the Shenzhen Stock Exchange for three times or over in the latest three years. Therefore the candidates were qualified for their respective positions according to the Stock Listing Rules of Shenzhen Stock Exchange and the Articles of Association of the Company. It was agreed to submit the nomination to the Board. The Nomination Committee held the 1st meeting of 2015 on April 10, 2015. The committee inspected the qualifications of Ms. Liu Yulin - candidates of independent directors for the 7th term of Board. The candidates was not applicable to any situation provided by Article 147 of the Company Law; under punishment by CSRC in the latest three years; or criticized by the Shenzhen Stock Exchange for three times or over in the latest three years. Therefore the candidates were qualified for their respective positions according to the Stock Listing Rules of Shenzhen Stock Exchange and the Articles of Association of the Company. It was agreed to submit the nomination to the Board.
Chongqing Jianshe Motorcycle Co., Ltd. Anuual Report 2014 Full Text V. Fulfilling of duties of the Supervisory Committee
Is there any risk with the Company discovered by the Supervisory Committee in the report period
[] Yes[V] No
The Supervisory Committeehasn‘t issued any objection on inspection issues.
VI. Particulars about the independency of the Company in aspects of business, personnel, asset, organization, and accounting
The Company is completely separate from the holding shareholder in aspects of business, asset, finance, and organization. It has its independent business operation.
1. Business: The Company has independent and complete development, purchase, production and marketing system. The Company is capable to perform business operation independently.
2. Personnel: The Company established independent functional department responsible for labor, personnel and wage management and formed labor, personnel and wage management system.
3. Asset: TheCompany‘s assets are independent and complete. The assets are registered, booked, accounted, and administrated independently.
4. Organization: The Company has established an organizational structure that is independent of its controlling shareholder. The organs of the Company are able to exercise their functions independently.
5. Finance: The Company has set up independent finance department, formed independent financial accounting system, established and perfected financial control system and internal control measures, opened independent bank accounts and paid taxes independently.
VII. Horizontal competition
China Military Equipment Group is the holding shareholder of China Jialing (Stock Code: 600877), Jinan Qingqi (Stock Code: 600698), and the Company. National Asset Supervisory Committee of the National Government is the substantial controller of it. It is mainly involved in manufacturing and sales of motorcycles. However then Company is not competing with the above two companies by any means of equity reorganizing, industrial property, national policy, or merger or takeover.
VIII. Assessment and incentive scheme for executives
The Company gives rewards to executives on annual basis which consist of basic annual rewards and performance rewards. Basic annual rewards are paid on monthly basis and performance rewards are distributed basing on the annual assessment on their performances and duties as well as democratic assessment.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Chapter X. Internal Control
I. Construction of internal control system
The internal control system was established according to regulations such as Standard of Enterprise Internal Control, Instruction on Enterprise Internal Control Mechanism, and Guide for Internal Control Assessment. It is covering internal environment, risk assessment, controlling actions, information exchange, and internal supervision, with consideration of current situation and business practice. In year 2014, the Company and its divisions further revised and improved 19 documents of administrative rules.
II. Statement of the Board of Directors on responsibilities of internal control
It is the Board ofDirectors‘ responsibility to setup and operate an effective and mature internal control system. The Supervisory Committee is responsible to inspect the operation of the system by the Board. While the executive team is responsible for daily operation of the system.
The Board of Directors, 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 Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report. Target of the internal control system: to a reasonable extent, ensuring the legal operation, asset safety, completeness of financial report, effectiveness of business operation, and realizing of development strategy. For the internal control system is constrained by multiple factors, only the above targets are ensured in reasonable ways.
Variation of circumstances could cause inappropriate of internal control system, or lower the satisfaction of operational policies. Therefore there could be certain risks attached to forecasting of future effectiveness of the internal control basing on the evaluation results.
III. Basis of internal control on financial statements
This assessment report is aiming to evaluate the effectiveness of the design and operation of internal control system, according to the requirements of the Enterprise Internal Control Standard, Risk Control Guide for Central Government Enterprises, and documents issued by Southern Group including Administration of Internal Control System(兵装审[2012]523号), Internal Control System Manual, Assessment of Internal Control System.
IV. Assessment report on internal control
|||
|-|-|
|Details about material flaw of internal control system in the report period discovered by the assessment report||
|1. Recognition and rectification of faults in internal control of financial report||
|According to the recognition standard of internal control of financial report, there is no material faults in internal||
|control of financial report of the period.||
|2. Recognition and rectification of faults in internal control other than the financial report||
|According to the recognition standard of internal control other than financial report, there is no material faults in||
|internal control other than the financial report of the period.||
|Date of the assessment report||
||April 28, 2015|
|was disclosed in full text||
|Index of internal control|Announcement 2014-013, Introspective Report on Internal Control System 2014,|
|assessment report|available at http://www.cninfo.com.cn.|

V. Internal control auditing report or verification report
Internal control auditing report
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
|||
|-|-|
|Auditing opinions in the auditing report on internal control||
|To our best knowledge, the Company is conducting an effective internal control system on financial reporting regarding all material||
|aspects as provided by the Enterprise Internal Control Standard as of December 31, 2014.||
|Disclosing date of internal control||
||April 28, 2015|
|auditing report full text||
|Index of the internal control auditing|Announcement 2015-029, Auditors‘ Report on Internal Control System 2014,|
|report full text|available at http://www.cninfo.com.cn.|

Whether the CPA has issued a non-standardauditors‘ report on the internal control system
[] Yes[V] No
Whether the opinions of theauditors‘ report are of concordance with the self-assessment report issued by the Board
[V]Yes[] No
VI. Responsibility retrospective mechanism for material faults in annual report
In order to guarantee the company information disclosure is true, accurate, promptly and fair, the company has formulated and implemented Accountability System of Significant Error of Information Disclosure in Annual Report in 2010. The company has made no significant accounting error correction, missing information addition and performance prediction amendment in the report period.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Chapter XI. Financial Report
I.Auditors’ Report
|||
|-|-|
|Type of auditing opinion|Standard report without qualified opinion|
|Date of issue of the Auditors‘ Report|April 23, 2015|
|Name of the CPA|BDO China Shu Lun Pan Certified Public Accountants LLP|
|Ref. No. of the Auditors‘ Report|信会师报字[2015]第710812号|
|Name of the certified accountants|Liu Jinjin, Wan Ping|

Auditors‘ Report
To the shareholders of Chongqing Jianshe Motorcycle Co., Ltd.:
We have audited the accompanying financial statements of Chongqing Jianshe Motorcycle Co., Ltd. (hereinafter referred to as―TheCompany‖ which comprise the consolidated statement of financial position and statement of financial position as at 31 December 2014, the consolidated statement of comprehensive income and statement of comprehensive income, the consolidated statement of changes in equity and statement of changes in equity, the consolidated statement of cash flows and statement of cash flows for the year then ended, and notes to the financial statements.
I.Executives’ responsibilities on the Financial Statements
Preparing of the Financial Statements according to Enterprise Accounting Standard is the responsibility of the management of the Company. This responsibility is including: (1) to prepare the financial statements according to the accounting standard, and ensure its fair reflection of business position; (2) to design, implement and maintain the internal control system related to producing of the Financial Statements, to prevent the Financial Statements from major false presentation due to cheating or error
II. Responsibilities of the CPA
Our responsibilities are to issue auditing opinions on the Financial Statements basing on the auditing workswe‘ve done on them. We carried out the auditing works with compliance to Chinese CPA Auditing Standard, which requires us to plan and implement our works on the basis of professional ethic standards, and obtain reasonable guarantee that the Financial Statements are free of major false statements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on theauditor‘s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider the internal control relevant to theentity‘s preparation of financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting polices used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 III.Auditors’ Opinions
In our opinion, the financial statements of the Company present fairly, in all material respects, the consolidated financial position and financial position of the Company as at 31 December 2014, and the consolidated results of operations and results of operations and the consolidated cash flows and cash flows of the Company for the year then ended in accordance with the requirements of Accounting standards for Business Enterprises.
BDO China Shu Lun Pan Certified Public Accountants LLP
CPA Shanghai China
April 23, 2015
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB Yuan
1. Consolidated Balance Sheet
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
Dec 31 2014
In RMB Yuan
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|192,918,049.28|388,314,602.28|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets accounted at fair value and fluctuation accounted into current income|||
|Deductive financial assets|||
|Notes receivable|45,673,753.36|81,253,424.87|
|Account receivable|255,013,689.72|311,899,501.77|
|Prepayment|23,181,893.00|32,738,242.83|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|15,618,940.96|23,946,335.95|
|Repurchasing of financial assets|||
|Inventories|277,612,004.04|299,191,811.74|
|Categorized as asset hold for sale|||
|Non-current asset due in 1 year|||
|Other current asset|20,102,069.93|17,127,455.06|
|Total of current asset|830,120,400.29|1,154,471,374.50|
|Non-current assets|||
|Loans and payment on other’s behalf disbursed|||
|Sellable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long-term share equity investment|686,110,128.77|689,241,790.19|
|Investment real estates|||
|Fixed assets|715,930,693.00|765,309,375.94|
|Construction in process|16,315,153.10|9,289,928.04|
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|92,488,110.55|103,263,664.23|
|R&D expense|36,689,261.07|27,603,929.21|
|Goodwill|||
|Long-term amortizable expenses|7,801,134.53|7,928,011.24|
|Deferred income tax asset|3,756,129.12|3,564,354.64|
|Other non-current asset||408,000.00|
|Total of non-current assets|1,559,090,610.14|1,606,609,053.49|
|Total of assets|2,389,211,010.43|2,761,080,427.99|
|Current liabilities|||
|Short-term loans|803,500,000.00|896,805,047.85|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities booked as current gain/loss at fair value|||
|Deductive financial liability|||
|Notes payable|560,011,000.00|742,696,400.00|
|Account payable|588,221,381.72|536,553,953.76|

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
||||
|-|-|-|
|Advances received|19,883,635.95|29,177,260.79|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|3,068,735.80|2,619,043.15|
|Tax payable|136,504,668.13|141,501,696.42|
|Interest payable|||
|Dividend payable|||
|Other account payable|24,887,424.31|32,539,679.76|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities categorized as hold for sale|||
|Non-current liability due in 1 year|111,000,000.00|98,000,000.00|
|Other current liability|||
|Total of current liability|2,247,076,845.91|2,479,893,081.73|
|Non-current liabilities|||
|Long-term borrowings|121,000,000.00|129,000,000.00|
|Bond payable|||
|Incl. Preference Shares|||
|Perpetual liability|||
|Long-term payable|||
|Long-term employee wage payable|||
|Special payable||738,000.00|
|Expected liabilities|3,226,654.00||
|Differed income|||
|Deferred income tax liability|||
|Other non-recurring liabilities|||
|Total of non-current liabilities|124,226,654.00|129,738,000.00|
|Total of liability|2,371,303,499.91|2,609,631,081.73|
|Owners‘ equity:|||
|Share capital|119,375,000.00|119,375,000.00|
|Other equity instruments|||
|Incl. Preference Shares|||
|Perpetual liability|||
|Capital reserves|960,505,517.59|960,505,517.59|
|Less: Shares in stock|||
|Other misc incomes|9,800.00|9,800.00|
|Special reserves|||
|Surplus reserves|125,686,000.00|125,686,000.00|
|Common risk provision|||
|Retained profit|-1,188,255,120.98|-1,054,661,171.00|
|Total of owner’s equity belong to the parent company|17,321,196.61|150,915,146.59|
|Minor shareholders’ equity|586,313.91|534,199.67|
|Total of owners’ equity|17,907,510.52|151,449,346.26|
|Total of liabilities and owners’ equity|2,389,211,010.43|2,761,080,427.99|

 Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
2. Balance Sheet of the Parent Company
In RMB Yuan
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|91,357,585.62|228,624,992.89|
|Financial assets accounted at fair value and fluctuation accounted into current income|||
|Deductive financial assets|||
|Notes receivable|29,995,643.90|39,803,978.66|
|Account receivable|26,337,349.85|4,802,644.17|
|Prepayment|9,953,627.54|18,601,531.02|
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|242,329,759.01|208,879,559.83|
|Inventories|63,334,869.40|79,555,340.09|

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
||||
|-|-|-|
|Categorized as asset hold for sale|||
|Non-current asset due in 1 year|||
|Other current asset|12,315,142.81|13,501,300.71|
|Total of current asset|475,623,978.13|593,769,347.37|
|Non-current assets|||
|Sellable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long-term share equity investment|833,881,665.35|837,478,318.07|
|Investment real estates|||
|Fixed assets|580,792,688.69|616,857,994.31|
|Construction in process|15,962,346.19|9,289,928.04|
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|80,167,159.69|90,630,390.57|
|R&D expense|36,689,261.07|27,603,929.21|
|Goodwill|||
|Long-term amortizable expenses|2,420,539.48|1,815,694.12|
|Deferred income tax asset|||
|Other non-current asset|||
|Total of non-current assets|1,549,913,660.47|1,583,676,254.32|
|Total of assets|2,025,537,638.60|2,177,445,601.69|
|Current liabilities|||
|Short-term loans|546,000,000.00|420,000,000.00|
|Financial liabilities booked as current gain/loss at fair value|||
|Deductive financial liability|||
|Notes payable|240,011,000.00|439,186,400.00|
|Account payable|562,631,216.39|504,942,097.46|
|Advances received|3,927,911.39|3,162,370.27|
|Employees’ wage payable|1,844,709.68|1,356,068.19|
|Tax payable|135,863,482.56|139,305,954.58|
|Interest payable|||
|Dividend payable|||
|Other account payable|203,369,913.46|239,108,166.57|
|Liabilities categorized as hold for sale|||
|Non-current liability due in 1 year|28,000,000.00|94,000,000.00|
|Other current liability|||
|Total of current liability|1,721,648,233.48|1,841,061,057.07|
|Non-current liabilities|||
|Long-term borrowings|114,000,000.00|47,000,000.00|
|Bond payable|||
|Incl. Preference Shares|||
|Perpetual liability|||
|Long-term payable|||
|Long-term employee wage payable|||
|Special payable||738,000.00|
|Expected liabilities|3,226,654.00||
|Differed income|||
|Deferred income tax liability|||
|Other non-recurring liabilities|||
|Total of non-current liabilities|117,226,654.00|47,738,000.00|
|Total of liability|1,838,874,887.48|1,888,799,057.07|
|Owners‘ equity:|||
|Share capital|119,375,000.00|119,375,000.00|
|Other equity instruments|||
|Incl. Preference Shares|||
|Perpetual liability|||
|Capital reserves|958,565,294.29|958,565,294.29|
|Less: Shares in stock|||
|Other misc incomes|9,800.00|9,800.00|
|Special reserves|||
|Surplus reserves|125,686,000.00|125,686,000.00|
|Retained profit|-1,016,973,343.17|-914,989,549.67|

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
||||
|-|-|-|
|Total of owners’ equity|186,662,751.12|288,646,544.62|
|Total of liabilities and owners’ equity|2,025,537,638.60|2,177,445,601.69|

 3. Consolidated Income Statement
In RMB Yuan
||||
|-|-|-|
||Occurred current|Occurred in previous|
|Items|||
||term|term|
|I. Total revenue|1,763,619,804.97|1,885,831,544.85|
|Incl. Business income|1,763,619,804.97|1,885,831,544.85|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,949,369,526.73|2,025,960,057.00|
|Incl. Business cost|1,550,142,872.56|1,621,781,115.95|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net insurance policy reserves provided|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|20,839,304.58|21,232,401.40|
|Sales expense|96,296,220.34|106,469,132.36|
|Administrative expense|164,666,573.99|157,756,151.37|
|Financial expenses|91,458,200.98|109,531,047.67|
|Asset impairment loss|25,966,354.28|9,190,208.25|
|Plus: gains from change of fair value (―-― for loss)|||
|Investment gains (―-― for loss)|31,930,338.58|38,359,736.11|
|Incl. Investment gains from affiliates|32,338,338.58|38,767,736.11|
|Exchange gains (―-― for loss)|||
|III. Operational profit (―-― for loss)|-153,819,383.18|-101,768,776.04|
|Plus: Non business income|24,035,612.05|111,961,580.72|
|Incl. Gains from disposal of non-current assets|12,172.94|59,925,313.56|
|Less: Non-business expenses|3,731,352.75|960,807.15|
|Incl. Loss from disposal of non-current assets|340,391.02|317,745.26|
|IV. Gross profit (―-― for loss)|-133,515,123.88|9,231,997.53|
|Less: Income tax expenses|26,711.86|-365,206.59|
|V. Net profit (―-― for net loss)|-133,541,835.74|9,597,204.12|
|Net profit attributable to the owners of parent company|-133,593,949.98|11,589,364.53|
|Minor shareholders’ equity|52,114.24|-1,992,160.41|
|VI. Net amount of other gains after tax||9,800.00|
|Net amount of other gains after tax attributable to owners of parent company||9,800.00|
|(I) Other gains not able to be relocated to gain/loss afterward||9,800.00|
|1. Change of net liability or asset of beneficiary plan from recalculating|||
|2. The share of other gains in invested entities under equity basis which are|||
|||9,800.00|
|not able to be relocated to gain/loss categories|||
|(II) Other gains which will be relocated to gain/loss in the future|||
|1. The share of other gains in invested entities under equity basis which are|||
|to be relocated to gain/loss categories|||
|2. Gain/loss from change of fair value of sellable financial asset|||
|3. Gain/loss from relocating of investment held to mature which is|||
|relocated to sellable financial asset|||
|4. Effective part of gain/loss from cash flow hedge operation|||
|5. Difference in translating of foreign currency accounts|||
|6. Others|||
|Net amount of other gains after tax attributable to minority shareholders|||
|VII. Total of integrated income|-133,541,835.74|9,607,004.12|
|Total of misc. incomes attributable to the owners of the parent company|-133,593,949.98|11,599,164.53|
|Total misc gains attributable to the minor shareholders|52,114.24|-1,992,160.41|
|VIII. Earning per share|||
|(I) Basic earnings per share|-1.119|0.097|
|(II) Diluted earnings per share|-1.119|0.097|

When merger of entities under common control, the net profit of the entities before merger was RMB0.00 and net profit of the
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 entities of the previous period was RMB0.00
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
4. Income Statement of the Parent Co.
In RMB Yuan
||||
|-|-|-|
||Occurred current|Occurred in previous|
|Items|||
||term|term|
|I. Turnover|1,432,632,633.68|1,559,242,823.61|
|Less: Operation cost|1,365,849,508.93|1,443,415,205.50|
|Business tax and surcharge|15,271,115.75|17,888,940.87|
|Sales expense|17,737,143.76|18,660,539.07|
|Administrative expense|118,014,569.75|116,725,251.30|
|Financial expenses|48,208,583.12|66,506,292.53|
|Asset impairment loss|22,066.35|90,051.53|
|Plus: gains from change of fair value (―-― for loss)|||
|Investment gains (―-― for loss)|31,873,347.28|38,359,736.11|
|Incl. Investment gains from affiliates|32,281,347.28|38,767,736.11|
|II. Operational profit (―-― for loss)|-100,597,006.70|-65,683,721.08|
|Plus: Non business income|2,169,745.02|73,319,110.01|
|Incl. Gains from disposal of non-current assets||24,661,835.16|
|Less: Non-business expenses|3,556,531.82|608,958.47|
|Incl. Loss from disposal of non-current assets|197,219.65|75,958.47|
|III. Total profit (―-― for loss)|-101,983,793.50|7,026,430.46|
|Less: Income tax expenses|||
|IV. Net profit (―-― for net loss)|-101,983,793.50|7,026,430.46|
|V. Net amount of other gains after tax||9,800.00|
|(I) Other gains not able to be relocated to gain/loss afterward||9,800.00|
|1. Change of net liability or asset of beneficiary plan from recalculating|||
|2. The share of other gains in invested entities under equity basis which are|||
|||9,800.00|
|not able to be relocated to gain/loss categories|||
|(II) Other gains which will be relocated to gain/loss in the future|||
|1. The share of other gains in invested entities under equity basis which are|||
|to be relocated to gain/loss categories|||
|2. Gain/loss from change of fair value of sellable financial asset|||
|3. Gain/loss from relocating of investment held to mature which is|||
|relocated to sellable financial asset|||
|4. Effective part of gain/loss from cash flow hedge operation|||
|5. Difference in translating of foreign currency accounts|||
|6. Others|||
|VI. Total of other gains|-101,983,793.50|7,036,230.46|
|VII. Earning per share|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

5. Consolidated Cash Flow Statement
In RMB Yuan
||||
|-|-|-|
||Occurred current|Amount of previous|
|Items|||
||term|period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of services|1,088,282,407.88|1,212,990,848.91|
|Net increase of customer deposits and capital kept for brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Net increased amount of financial assets on fair value and with changes|||
|accounted into current gain/loss|||
|Cash received as interest, processing fee, and commission|||
|Net increase of inter-bank fund received|||

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
||||
|-|-|-|
|Net increase of repurchasing business|||
|Tax returned|21,919,746.52|21,866,279.06|
|Other cash received from business operation|12,873,963.38|57,794,942.79|
|Sub-total of cash inflow from business activities|1,123,076,117.78|1,292,652,070.76|
|Cash paid for purchasing of merchandise and services|715,173,308.79|812,747,296.01|
|Net increase of client trade and advance|||
|Net increase of savings in central bank and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|185,235,196.17|210,694,457.66|
|Taxes paid|62,995,579.11|39,730,443.76|
|Other cash paid for business activities|65,073,381.80|66,631,211.29|
|Sub-total of cash outflow from business activities|1,028,477,465.87|1,129,803,408.72|
|Cash flow generated by business operation, net|94,598,651.91|162,848,662.04|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment gains|35,470,000.00|30,470,000.00|
|Net cash retrieved from disposal of fixed assets, intangible assets, and other|||
||787,626.79|98,887,497.04|
|long-term assets|||
|Net cash received from disposal of subsidiaries or other operational units|||
|Other investment-related cash received|||
|Sub-total of cash inflow due to investment activities|36,257,626.79|129,357,497.04|
|Cash paid for construction of fixed assets, intangible assets and other long-term|||
||8,308,530.07|19,896,411.57|
|assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|8,308,530.07|19,896,411.57|
|Net cash flow generated by investment|27,949,096.72|109,461,085.47|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Incl. Cash received as investment from minor shareholders|||
|Cash received as loans|1,536,816,336.53|1,676,744,144.42|
|Cash received from bond placing|||
|Other financing-related cash received|1,668,003,472.46|1,812,403,580.32|
|Subtotal of cash inflow from financing activities|3,204,819,808.99|3,489,147,724.74|
|Cash to repay debts|1,626,684,717.71|1,785,191,284.13|
|Cash paid as dividend, profit, or interests|97,604,880.79|117,430,621.98|
|Incl. Dividend and profit paid by subsidiaries to minor shareholders|||
|Other cash paid for financing activities|1,738,217,906.13|1,768,259,792.70|
|Subtotal of cash outflow due to financing activities|3,462,507,504.63|3,670,881,698.81|
|Net cash flow generated by financing|-257,687,695.64|-181,733,974.07|
|IV. Influence of exchange rate alternation on cash and cash equivalents|473,184.31|-1,963,339.08|
|V. Net increase of cash and cash equivalents|-134,666,762.70|88,612,434.36|
|Plus: Balance of cash and cash equivalents at the beginning of term|170,222,347.76|81,609,913.40|
|VI. Balance of cash and cash equivalents at the end of term|35,555,585.06|170,222,347.76|

 6. Cash Flow Statement of the Parent Co.
In RMB Yuan
||||
|-|-|-|
||Occurred current|Occurred in previous|
|Items|||
||term|term|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of services|790,157,926.32|904,428,491.10|
|Tax returned|9,748,785.28|9,496,537.55|
|Other cash received from business operation|3,276,367.42|50,838,158.79|
|Sub-total of cash inflow from business activities|803,183,079.02|964,763,187.44|
|Cash paid for purchasing of merchandise and services|648,795,328.71|717,269,338.71|
|Cash paid to staffs or paid for staffs|142,893,843.11|162,656,060.94|
|Taxes paid|22,992,587.97|23,398,327.58|
|Other cash paid for business activities|20,153,490.60|20,181,418.51|
|Sub-total of cash outflow from business activities|834,835,250.39|923,505,145.74|
|Cash flow generated by business operation, net|-31,652,171.37|41,258,041.70|

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
||||
|-|-|-|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment gains|35,470,000.00|30,470,000.00|
|Net cash retrieved from disposal of fixed assets, intangible assets, and other|||
||763,942.20|35,310,806.95|
|long-term assets|||
|Net cash received from disposal of subsidiaries or other operational units|||
|Other investment-related cash received|||
|Sub-total of cash inflow due to investment activities|36,233,942.20|65,780,806.95|
|Cash paid for construction of fixed assets, intangible assets and other long-term|||
||6,716,583.27|17,945,675.67|
|assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|6,716,583.27|17,945,675.67|
|Net cash flow generated by investment|29,517,358.93|47,835,131.28|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|1,108,000,000.00|1,108,000,000.00|
|Cash received from bond placing|||
|Other financing-related cash received|2,842,482,896.62|3,061,480,000.89|
|Subtotal of cash inflow from financing activities|3,950,482,896.62|4,169,480,000.89|
|Cash to repay debts|981,000,000.00|1,300,000,000.00|
|Cash paid as dividend, profit, or interests|48,073,502.78|67,647,414.62|
|Other cash paid for financing activities|3,045,213,908.94|2,794,529,151.55|
|Subtotal of cash outflow due to financing activities|4,074,287,411.72|4,162,176,566.17|
|Net cash flow generated by financing|-123,804,515.10|7,303,434.72|
|IV. Influence of exchange rate alternation on cash and cash equivalents|||
|V. Net increase of cash and cash equivalents|-125,939,327.54|96,396,607.70|
|Plus: Balance of cash and cash equivalents at the beginning of term|148,232,292.69|51,835,684.99|
|VI. Balance of cash and cash equivalents at the end of term|22,292,965.15|148,232,292.69|

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 7. Statement of Change inOwners’ Equity (Consolidated)
Amount of the Current Term
In RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Current term|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||||||||||||Minorsharehold||
|||Other equity instruments|||||||||||Total of|
||Share|Prefere|Perpetu||Capital|Less:Shares in|Othermisc|Special|Surplus|Commonrisk|Retained|ers’|owners’|
||capital|nce|al|Others|reserves|||reserves|reserves||profit||equity|
|||||||stock|incomes|||provision||equity||
|||shares|liability|||||||||||
|I. Balance at end of|119,375||||960,505,5||||125,686,0||-1,054,66|534,199.6|151,449,3|
||||||||9,800.00|||||||
|prev. year|,000.00||||17.59||||00.00||1,171.00|7|46.26|
|Plus: Change of||||||||||||||
|accounting policy||||||||||||||
|Correcting||||||||||||||
|of previous errors||||||||||||||
|Business||||||||||||||
|combination under||||||||||||||
|common control||||||||||||||
|Others||||||||||||||
|II. Balance at||||||||||||||
||119,375||||960,505,5||||125,686,0||-1,054,66|534,199.6|151,449,3|
|beginning of current|||||||9,800.00|||||||
||,000.00||||17.59||||00.00||1,171.00|7|46.26|
|year||||||||||||||
|III. Amount of change||||||||||||||
||||||||||||-133,593,||-133,541,|
|in current term (―-― for||||||||||||52,114.24||
||||||||||||949.98||835.74|
|decrease)||||||||||||||
||||||||||||-133,593,||-133,541,|
|(I) Total of other gains||||||||||||52,114.24||
||||||||||||949.98||835.74|
|(II) Owners‘ input our||||||||||||||
|retrieving of capital||||||||||||||
|1. Common shares||||||||||||||
|input by shareholders||||||||||||||
|2. Capital input by||||||||||||||
|other equity holders||||||||||||||
|3. Amount of share||||||||||||||
|payment including||||||||||||||
|owners‘ equity||||||||||||||
|4. Others||||||||||||||
|(III) Profit distribution||||||||||||||
|1. Providing of surplus||||||||||||||
|reserves||||||||||||||
|2. Common risk||||||||||||||
|provision||||||||||||||
|3. Allotment to the||||||||||||||
|owners (or||||||||||||||
|shareholders)||||||||||||||
|4. Others||||||||||||||
|(IV) Internal transition||||||||||||||
|of owners‘ equity||||||||||||||
|1. Capitalizing of||||||||||||||
|capital reserves (or to||||||||||||||
|capital shares)||||||||||||||
|2. Capitalizing of||||||||||||||
|surplus reserves (or to||||||||||||||
|capital shares)||||||||||||||
|3. Making up losses||||||||||||||
|by surplus reserves||||||||||||||
|4. Others||||||||||||||
|(V) Special reserves||||||||||||||
|1. Provided this year||||||||||||||
|2. Used this term||||||||||||||
|(VI) Others||||||||||||||
|IV. Balance at the end|119,375||||960,505,5||||125,686,0||-1,188,25|586,313.9|17,907,510.52|
||||||||9,800.00|||||||
|of this term|,000.00||||17.59||||00.00||5,120.98|1||

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Amount of the Previous Term
In RMB Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Previous term|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||||||||||||Minorsharehold||
|||Other equity instruments|||||||||||Total of|
||Share|Prefere|Perpetu||Capital|Less:Shares in|Othermisc|Special|Surplus|Commonrisk|Retained|ers’|owners’|
||capital|nce|al|Others|reserves|||reserves|reserves||profit||equity|
|||||||stock|incomes|||provision||equity||
|||shares|liability|||||||||||
|I. Balance at end of|477,500||||602,880,5||||125,686,0||-1,063,62|2,548,71|144,990,9|
|prev. year|,000.00||||17.59||||00.00||4,266.50|8.29|69.38|
|Plus: Change of||||||||||||||
|accounting policy||||||||||||||
|Correcting||||||||||||||
|of previous errors||||||||||||||
|Business||||||||||||||
|combination under||||||||||||||
|common control||||||||||||||
|Others||||||||||||||
|II. Balance at||||||||||||||
||477,500||||602,880,5||||125,686,0||-1,063,62|2,548,71|144,990,9|
|beginning of current||||||||||||||
||,000.00||||17.59||||00.00||4,266.50|8.29|69.38|
|year||||||||||||||
|III. Amount of change|-358,12|||||||||||||
||||||357,625,0||||||8,963,095|-2,014,51|6,458,376|
|in current term (―-― for|5,000.0||||||9,800.00|||||||
||||||00.00||||||.50|8.62|.88|
|decrease)|0|||||||||||||
||||||||||||11,589,36|-1,992,16|9,607,004|
|(I) Total of other gains|||||||9,800.00|||||||
||||||||||||4.53|0.41|.12|
|(II) Owners‘ input our|||||-500,000.||||||||-500,000.|
|retrieving of capital|||||00||||||||00|
|1. Common shares||||||||||||||
|input by shareholders||||||||||||||
|2. Capital input by||||||||||||||
|other equity holders||||||||||||||
|3. Amount of share||||||||||||||
|payment including||||||||||||||
|owners‘ equity||||||||||||||
||||||-500,000.||||||||-500,000.|
|4. Others||||||||||||||
||||||00||||||||00|
|(III) Profit distribution||||||||||||||
|1. Providing of surplus||||||||||||||
|reserves||||||||||||||
|2. Common risk||||||||||||||
|provision||||||||||||||
|3. Allotment to the||||||||||||||
|owners (or||||||||||||||
|shareholders)||||||||||||||
|4. Others||||||||||||||
||-358,12|||||||||||||
|(IV) Internal transition|||||358,125,0|||||||||
||5,000.0|||||||||||||
|of owners‘ equity|||||00.00|||||||||
||0|||||||||||||
|1. Capitalizing of||||||||||||||
|capital reserves (or to||||||||||||||
|capital shares)||||||||||||||
|2. Capitalizing of||||||||||||||
|surplus reserves (or to||||||||||||||
|capital shares)||||||||||||||
|3. Making up losses||||||||||||||
|by surplus reserves||||||||||||||
||-358,12|||||||||||||
||||||358,125,0|||||||||
|4. Others|5,000.0|||||||||||||
||||||00.00|||||||||
||0|||||||||||||
|(V) Special reserves||||||||||||||
|1. Provided this year||||||||||||||
|2. Used this term||||||||||||||
||||||||||||-2,626,26|-22,358.2|-2,648,62|
|(VI) Others||||||||||||||
||||||||||||9.03|1|7.24|
|IV. Balance at the end|119,375||||960,505,5||||125,686,0||-1,054,66|534,199.|151,449,3|
||||||||9,800.00|||||||
|of this term|,000.00||||17.59||||00.00||1,171.00|67|46.26|

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 8. Statement of Change inOwners’ Equity (Parent Co.)
Amount of the Current Term
In RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Current term|||||||||||
|||Other equity instruments||||Less:|||||Total of|
|Items|Share||||Capital||Other misc|Special|Surplus|Retained||
|||Preferenc|Perpetual|||Shares in|||||owners’|
||capital|||Others|reserves||incomes|reserves|reserves|profit||
|||e shares|liability|||stock|||||equity|
|I. Balance at end of|119,375,0||||958,565,29||||125,686,00|-914,989,|288,646,54|
||||||||9,800.00|||||
|prev. year|00.00||||4.29||||0.00|549.67|4.62|
|Plus: Change of||||||||||||
|accounting policy||||||||||||
|Correcting||||||||||||
|of previous errors||||||||||||
|Others||||||||||||
|II. Balance at||||||||||||
||119,375,0||||958,565,29||||125,686,00|-914,989,|288,646,54|
|beginning of current|||||||9,800.00|||||
||00.00||||4.29||||0.00|549.67|4.62|
|year||||||||||||
|III. Amount of change||||||||||||
|||||||||||-101,983,|-101,983,79|
|in current term (―-― for||||||||||||
|||||||||||793.50|3.50|
|decrease)||||||||||||
|||||||||||-101,983,|-101,983,79|
|(I) Total of other gains||||||||||||
|||||||||||793.50|3.50|
|(II) Owners‘ input our||||||||||||
|retrieving of capital||||||||||||
|1. Common shares||||||||||||
|input by shareholders||||||||||||
|2. Capital input by||||||||||||
|other equity holders||||||||||||
|3. Amount of share||||||||||||
|payment including||||||||||||
|owners‘ equity||||||||||||
|4. Others||||||||||||
|(III) Profit distribution||||||||||||
|1. Providing of surplus||||||||||||
|reserves||||||||||||
|2.Allotment to the||||||||||||
|owners (or||||||||||||
|shareholders||||||||||||
|3. Others||||||||||||
|(IV) Internal transition||||||||||||
|of owners‘ equity||||||||||||
|1. Capitalizing of||||||||||||
|capital reserves (or to||||||||||||
|capital shares)||||||||||||
|2. Capitalizing of||||||||||||
|surplus reserves (or to||||||||||||
|capital shares)||||||||||||
|3. Making up losses||||||||||||
|by surplus reserves||||||||||||
|4. Others||||||||||||
|(V) Special reserves||||||||||||
|1. Provided this year||||||||||||
|2. Used this term||||||||||||
|(VI) Others||||||||||||
|IV. Balance at the end|119,375,0||||958,565,29||||125,686,00|-1,016,97|186,662,751.12|
||||||||9,800.00|||||
|of this term|00.00||||4.29||||0.00|3,343.17||

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Amount of the Previous Term
In RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Previous term|||||||||||
|||Other equity instruments||||Less:|||||Total of|
|Items|Share||||Capital||Other misc|Special|Surplus|Retained||
|||Preferenc|Perpetual|||Shares in|||||owners’|
||capital|||Others|reserves||incomes|reserves|reserves|profit||
|||e shares|liability|||stock|||||equity|
|I. Balance at end of|477,500,0||||600,940,29||||125,686,00|-919,389,|284,736,58|
|prev. year|00.00||||4.29||||0.00|711.10|3.19|
|Plus: Change of||||||||||||
|accounting policy||||||||||||
|Correcting||||||||||||
|of previous errors||||||||||||
|Others||||||||||||
|II. Balance at||||||||||||
||477,500,0||||600,940,29||||125,686,00|-919,389,|284,736,58|
|beginning of current||||||||||||
||00.00||||4.29||||0.00|711.10|3.19|
|year||||||||||||
|III. Amount of change||||||||||||
||-358,125,||||357,625,00|||||4,400,161|3,909,961.4|
|in current term (―-― for|||||||9,800.00|||||
||000.00||||0.00|||||.43|3|
|decrease)||||||||||||
|||||||||||7,026,430|7,036,230.4|
|(I) Total of other gains|||||||9,800.00|||||
|||||||||||.46|6|
|(II) Owners‘ input our||||||||||||
||||||-500,000.00||||||-500,000.00|
|retrieving of capital||||||||||||
|1. Common shares||||||||||||
|input by shareholders||||||||||||
|2. Capital input by||||||||||||
|other equity holders||||||||||||
|3. Amount of share||||||||||||
|payment including||||||||||||
|owners‘ equity||||||||||||
|4. Others|||||-500,000.00||||||-500,000.00|
|(III) Profit distribution||||||||||||
|1. Providing of surplus||||||||||||
|reserves||||||||||||
|2.Allotment to the||||||||||||
|owners (or||||||||||||
|shareholders||||||||||||
|3. Others||||||||||||
|(IV) Internal transition|-358,125,||||358,125,00|||||||
|of owners‘ equity|000.00||||0.00|||||||
|1. Capitalizing of||||||||||||
|capital reserves (or to||||||||||||
|capital shares)||||||||||||
|2. Capitalizing of||||||||||||
|surplus reserves (or to||||||||||||
|capital shares)||||||||||||
|3. Making up losses||||||||||||
|by surplus reserves||||||||||||
||-358,125,||||358,125,00|||||||
|4. Others||||||||||||
||000.00||||0.00|||||||
|(V) Special reserves||||||||||||
|1. Provided this year||||||||||||
|2. Used this term||||||||||||
|||||||||||-2,626,26|-2,626,269.|
|(VI) Others||||||||||||
|||||||||||9.03|03|
|IV. Balance at the end|119,375,0||||958,565,29||||125,686,00|-914,989,|288,646,54|
||||||||9,800.00|||||
|of this term|00.00||||4.29||||0.00|549.67|4.62|

CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 1 Corporate information
1.1 Company profile
Chongqing Jianshe Motorcycle Co., Ltd. (hereinafter referred to as the "Company", "Company" or "Chongqing Jianshe Motorcycle ") was jointly set up in July 1995 by the Construction Industry (Group) Co., Ltd. and China North Industries Shenzhen Corporation. The Business License of the Enterprise Legal Person of the Company: No. 500000400001350The Company was listed in July 1995 at the Shenzhen Stock Exchange. The Company is engaged in the manufacturing industry. As at December 31, 2014, the Company issued 119,375,000 shares in total and had the registered capital of 119,375,000. The registration place: NO.1, JIANSHE ROAD HUAXI INDUSTRY PARK, BANAN DISTRICT, CHONGQING; the headquarters address: Banan District, Chongqing Municipality. Legal representative: Li Huaguang. The main business activities: research and development, processing, manufacturing and related technical services of Motorcycles, auto parts, accessories, machinery products, design , manufacturing and related technical services of tooling (except for those subject to national special provisions) ; R& D, production and sales of motorcycle engines; research , development and processing of mechanical and electrical products, home appliances, bicycles, environmental protection product; imports, wholesale, retail, commission agency (except auction) of similar products of these products. The parent company and the actual controller of the Company is China South Industries Group Corporation, and the ultimate controller of the Company is the State-owned Assets Supervision and Administration Commission (SASAC).
The Company which is formerly known as "Shenzhen North Jianshe Motorcycle Co., Ltd." and set up jointly by Construction Industry (Group ) Co., Ltd. (hereinafter referred to as the "Construction Group") and China North Industries Shenzhen Co., Ltd. was renamed "Chongqing Jianshe Motorcycle Co., Ltd.", according to the resolution adopted at the extraordinary shareholders' meeting on March 30, 2002, which was registered with the industrial and commercial administration on March 11, 2003, with the business license for enterprise legal person of which the registration No. 5000001805583 obtained from Chongqing Industrial and Commercial Administration.
Construction Group and China South Industries Group Corporation (hereinafter referred to as the "South Group" ) signed the "Equity Transfer Agreement" on December 3, 2004 and the "supplementary agreement on Equity Transfer" on January 22, 2005, for transfer of 339,625,000 shares of state-owned legal person to the South Group, as approved by SASAC under the State Council on March 9, 2005 and by China Securities Regulatory Commission exempting the tender offer obligation of South Group in May 2005.
In September 2005, the Company was changed to foreign-invested joint stock company from the domestic joint stock company, according to the approval of WZSZ[2005] No. 0628 of the Ministry of Commerce of the People's Republic of China; the Company went through the alternation formalities with the industrial and commercial administration and obtained the business license for enterprise legal person of which the registration No. is 500000400001350 in August 2007; the registration place is Chongqing Municipality and the registered capital is RMB477,500,000.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 In April 2007, according to the (2006) SZFMEZ No. 21-4 civil ruling by Shenzhen Intermediate People's Court of Guangdong Province, 17,875,000 shares of state-owned legal person of the Company, which had been held by China North Industries Shenzhen Corporation, should be owned by the buyers Yangpu Xinyufeng investment Co., Ltd. Feng Yonghui and Gu Zuocheng, of which 7 million shares should be held by Yangpu Xinyufeng investment Co., Ltd. 2 million shares by Feng Yonghui and 8,875,000 shares by Gu Zuocheng.
In 2012, Yangpu Xinyufeng Investment Co., Ltd. transferred 7 million shares of the Company it had then to Anhui Hengsheng Economic Development Group Co., Ltd.
In September 2013, according to the resolutions of the shareholders' meeting and the revised Articles of Association and under the Reply of Foreign Trade and Economic Commission of Chongqing Municipality on Approval for the Reduction of Registered Capital of Chongqing Jianshen Motorcycle Co., Ltd. (YWJMH[2013] No. 219) and Reply of China South Industrial Group Co., Ltd. on Issues Concerning the Stock Shrinkage by Chongqing Jianshen Motorcycle Co., Ltd.(BZZ[2013] No. 60), the Company carried out the stock shrinkage at a ratio of 4: 1 to reduce the total share capital to 119,375,000 shares from 477,500,000 shares and to reduce the registered capital to RMB119,375,000 from RMB477,500,000, which alternation was registered with the industrial and commercial administration, with the business license for enterprise legal person of which the registration No. is 500000400001350 obtained from the Industrial and Commercial Administration of Chongqing Municipality.
The disclosure of the financial statements was approved by the Board of Directors on April 23, 2015.
1.2 Scope of the consolidated financial statements
As at December 31, 2014, the subsidiaries included in the scope of consolidated financial statements of the Company are presented as set out below:
Name of the subsidiary
Chongqing Jianshe Sales Co., Ltd.
Chongqing Northe Import and Export Trade Co., Ltd.
Chongqing Jianshe Automobile A/C Co., Ltd.
Shanghai Jianshe Motorcycle Co., Ltd.
CHONGQING JIANSHE MOTORCYCLE DISTRIBUTION CO.,LTD.
See "Note 6 Change in the scope of consolidation" and "Note 7 Interests in other entities" for details of scope consolidated financial statements and the change therein.
2 Basis of preparation for financial statements
2.1 Basis of preparation
The Company prepares the financial statements on the basis of going concern, according to actual transactions and events, and in accordance with the Accounting Standards for Business Enterprises– Basic Standards and 38 concrete accounting standards issued by the Ministry of Finance on February 15, 2006, the subsequently issued Accounting Standards for Business Enterprises– Application Guidelines, and the Accounting Standards for Business Enterprises– Interpretations and other relevant provisions (hereinafter collectively referred to as―Accounting Standards for BusinessEnterprises‖), as well as Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (as amended in 2010) issued by China Securities Regulatory Commission.
2.2 Going concern
The Company was on a going concern basis in 12 months as of the end of the current reporting
period and was not affected by any material event having impact on the going concern.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 3 Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
The disclosure as set out below cover the specific accounting policies and accounting estimates developed by the Company in accordance with the actual production and management features. See "Note 3.31 Provision for bad debts of accounts receivables, "Note 3.12 Inventories", "Note 3.16 Fixed assets", "Note 3.19 Intangible assets" and "3.25 Revenues" for details.
3.1 Statements on Compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for Business Enterprises and truly and completely reflect theCompany‘s financial position, operating results and cash flows, etc. for the reporting period.
3.2 Accounting period
The accounting year is from January 1 to December 31.
3.3 Operating cycle
The Company has an operating cycle of 12 months.
3.4 Functional currency
The functional currency is Renminbi.
3.5 Accounting treatments of the combination of enterprises under common control and the combination of enterprises not under the common control
Business combination under common control: The assets and liabilities acquired by the Company in a business combination are stated at the book value of the assets and liabilities (including the goodwill arising from the acquisition of the acquiree by the ultimate controller) of the acquiree on the combination date. The stock premium in the capital reserve is adjusted according to the difference between the book value of net assets acquired through combination and the book value of consideration paid for the combination (or total par value of shares issued). If the stock premium in the capital reserves is insufficient to cover the difference, the remaining amount shall be charged against retained earnings.
Combination of enterprises not under the common control: The assets paid and liabilities incurred or assumed by the Company on the acquisition date for the business combination are measured at their fair values, and the difference between the fair value and book value is charged to the current profit or loss. The Company shall recognize the difference of the combination costs in excess of the fair value of the identifiable net assets acquired from the acquiree as goodwill. The difference of the combination costs in short of the fair value of the identifiable net assets acquired from the acquiree is charged to the current profit and loss after review.
The intermediary service charges incurred for audit, legal service, consulting services and other direct relevant expenses are charged to the current profit and loss; the transaction costs incurred for issuance of equity securities for business combination offest the equities.
3.6 Preparation of consolidated financial statements
3.6.1 Scope of consolidation
The scope of consolidated financial statements is determined on the basis of control, and all subsidiaries (including the divisable portion of the investee under the control of the Company) are included in the consolidated financial statements.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 3.6.2 Combination procedures
The Company prepares the consolidated financial statements on the basis of the financial statements of itself and its subsidiaries, according to other relevant information. When preparing the consolidated financial statements, the Company regards the whole group as an accounting entity to reflect the overall financial position, operating results and cash flow of the Group, in accordance with requirements of relevant accounting standards for the recognition, measurement and presentation, on the basis of the uniform accounting policies. The accounting polidies and accounting period adopted by the subsidiaries included in the scope of consolidated financial statements are in line with those adopted by the Company. In case any disrepancy between the accounting policies and accounting period adopted by the subsidiary and those adopted by the Company, the adjustment will be made in light of the accounting policies and accounting period adopted by the Company, when the consolidated financial statements are prepared.The financial statements of the subsidiary acquired through the combination of enterprises not under common control are adjusted on the basis of the fair value of the identifiable net assts on the acquisition date. The financial assets of the subsidiary acquired through the combination of enterprises under the common control are adjusted on the basis of the book value of the assets and liabilities (including the goodwill arising from the acquisition of such subsidiary by the ultimate controller) as stated in the financial statements of the ultimate controller.
The owners' equities, current net profit or loss and current comprehensive income attributable to minority shareholders are separately presented under the owners' equities item of the consolidated balance sheet, net profit item and total comprehensive income item of the consolidated income statement, respectively. Where the current losses attributable to minority shareholders of the subsidiary exceed the owners' equities attributable to the same at the period beginning, the difference between them will offset the minority equity. (1) Increase of the subsidiary or business
In case of increase of subsidiary or business as a result of combination of enterprises under common control during the reporting period, the beginning amount stated in the consolidated balance sheet will be adjusted; the income, expense and profit generated from the subsidiary or business from the beginning of the period of combination to the end of reporting period will be included in the consolidated statement of cash flows, with the adjustment made to the relevant items of the comparative statement, as if the reporting entity after the combination still existed from the beginning of control of the ultimate controller.
Where the additional investment or other reason leads to the control over the investee under the common control, all entities considered to take a part in the combination will be adjusted to the extent that they are in the current status as they come to be under the control of the ultimate controller. The retained earnings or the current profit or loss at the period beginning during the statement period are offset by equity investment held before the control over the mergee is obtained, and the equity investments held before the control over the acquiree is obtained, and the related profit or loss, other comprehensive income and change in other net assets that are recognized during the period which starts on the later of the date when the original equities are obtained and the date when both merger and mergee are under the common control and ends on the combination date, respectively.
In case of increase of subsidiary or business during the reporting period as a result of combination of enterprises not under the common control, the beginning amount stated in the consolidated balance sheet will not be adjusted; the income, expense and profit generated from such subsidiary or business from the acquisition date to the end of reporting period will be included in the consolidated income statement; and the cash
flow generated from such subsidiary or business from the acquisition date to the end of
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 reporting period will be incldued in the consolidated statement of cash flows.
Where the additional investment or other reason leads to the control over the investee not under the common control, the equities of the mergee held before the acquisition date will be remeasured at the fair value of such equities on the acquisition date, and the difference between the fair value and book value thereof will be charged to the current investment income. Where the equities of the acquiree held before the acquisition date involves the change in other comprehensive income or in other owners' equities other than the net profit or loss, other comprehensive income and profit distribution, the change in other comprehensive income or other owners' equities will be converted into tthe investment income for the period covering the acquisition date, except for the other comprehensive income arising from the change on remeasurement of the net liabilities or net assets under the defined benefit plan by the investee.
(2) Disposal of the subsidiary or business
a. General method of treatment
In case of treatment of subsidiary or business during the reporting, the the income, expense and profit generated from such subsidiary or business from the period beginning to the disposal date will be included in the consolidated income statement; and the cash flow generated from such subsidiary or business from the period beginning to the disposal date will be incldued in the consolidated statement of cash flows.
Where the control over the investee is lost due to the disposal of some of equity investments or other reasons, the remaining equity investment after disposal will be re-measured at fair value on the day when the control is lost.The sum of the consideration received for disposal of equities and the fair value of the remaining equities, less the difference between the net assets of the former subsidiary of which the continuous calculation starts from the acquisition date or combination date and the goodwill, should be charged to the investment income for the period during which the control is lost.Changes in other comprehensive income related to the equity investment in the former subsidiary or in owners' equities other than the net profit or loss, other comprehensive income and profit distribution are converted into the current investment income upon the loss of control, except for the other comprehensive income arising from the change on remeasurement of the net liabilities or net assets under the defined benefit plan by the investee.
b. Disposal of subsidiary by stages
In case of disposal of investment in the equity of subsidiary by stages through a number of transactions, such transactions will be treated as a package deal, provided that the terms and conditions on and the economic effect of the equity investment in the subsidiary meet one of more of the following conditions:
ⅰ. These transactions are entered into considering their effects are considered;ⅱ. These transactions can lead to a complete business result as a whole;
ⅲ. The occurrence of a transaction depends on the occurrence of at least one of others; and
ⅳ. A single transaction is deemed uneconomical, but the economical efficiency can be seen when it is put together with other transactions;
Where the transctions involved in the disposal of the equity investment in the subsidiary are package deals, the Company will treat each transaction as the one
involved in the disposal of the subsidiary with loss of control; however, the difference
between the consideration for each disposal before the loss of control and the net assets
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 of such subsidiary corresponding to the disposal of investment will be recognized as other comprehensive income in the consolidated financial statements, and will be transferred to the loss or profit for the period during which the control is lost, upon the loss of control.
Where the transctions involved in the disposal of the equity investment in the subsidiary are not package deals, these transactions will be treated according to the policies on the disposal of part of the equity investments in the subsidiary without loss of control, before the loss of control; or treated in the general treatment method of disposa of subsidiary, upon the loss of control.
(3) Acquisition of minority equity of subsidiary
The stock premium under the capital reserve in the consolidated balance sheet is adjusted at the difference between the long-term equity investment newly acquired as a result of acquisition of minority equity and the net assets of the subsidiary attributable to the Company, of which the continuous calculation starts from the acquisition date (or combination date); and the retained earnings will be adjusted if the stock premium under the capital reserve is insufficient as to the offset.
(4) Disposal of part of the equity investments in the subsidiary without loss of control The stock premium under the capital reserve in the consolidated balance sheet is adjusted at the difference between the consideration received for the disposal of part of the long-term equity investments in the subsidiary without loss of control and the net assets of the subsidiary attributable to the Company, of which the continuous calculation starts from the acquisition date (or combination date); and the retained earnings will be adjusted if the stock premium under the capital reserve is insufficient as to the offset.
3.7 Classification and accounting treatment of joint venture arrangement
Joint venture arrangement is classified into joint operation and joint ventures.
In terms of the joint operation, the Company is the joint venturer under the joint venture arrangement and is entitled to the assets and bear the liabilities under such arrangement.
The Company recognizes the following items in relation with the share of interest in the joint operation, and conducts the accounting treatment of the the said items according to the provisions of Accounting Standards for Enterprises:
(1) Recognition of the assets held separately by the Company and of the assets held by the Company jointly others in proportion;
(2) Recognition of the liabilities separately borne by the Company and of the liabilities borne by the Company jointly others in proportion;
(3) Recognition of proportioned income generated attributable to the Company as one of the co-operators;
(4) Recognition of income generated fattributible to the Company as one of the co-sellers; (5) Recognition of the expenses incurred separately and the proportioned expenses incurred by the Company as one of the co-opeartors.
See "Note 3.14 Long-term equity investments" for detailed of accounting policies on the investment of the Company in joint ventures.
3.8 Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term―cash‖ refers to cash on hand and deposits of that are readily available for payment. And the term―cashequivalents‖ refers to
short-term (maturing within three months from acquisition) and highly liquid investments that are
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
3.9 Foreign currency business and foreign currency translation
3.9.1 Foreign currency business:
Transactions denominated in foreign currency are translated into RMB for accounting purpose at the spot exchange rate on the day when the transaction occurs.
The balances of foreign currency monetary items are converted at the spot exchange rate prevailing on the balance sheet date. The exchange differences arising from the conversion, other than those arising from specific-purpose borrowings in foreign currencies related to acquisition and construction of assets eligible for capitalization, which shall be measured in accordance with principle of capitalization of the borrowing costs, shall be charged to the current profit or loss.
3.9.2 Translation of financial statement denominated in foreign currency
The asset and liability items in the balance sheet shall be converted at the spot exchange rates prevailing on the balance sheet date. Except retained profit, theowners‘ equity items shall be converted at the spot exchange rates on the occurrence date.The income and expense items in the income statement shall be converted at the spot exchange rates which are determined by systematic and reasonable methods and similar to the spot exchange rate on the date of occurrence of transaction.
On disposal of a foreign operation, the difference arising from the converstion of financial statements denominated in foreign currency and related to such foreign operation should be transferred to the current gain or loss on disposal, from the owners' equities.
3.10 Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
3.10.1 Classification of financial instruments
Upon the initial recognition, fFinancial assets and liabilities are classified into the following categories according to the purpose of acquisition: the financial assets or financial liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities held for trading (and those financial assets or financial liabilities directly designated under this category), held-to-maturity investments, receivables, financial assets available for sale and other financial liabilities, etc.
3.10.2 Recognition and measurement of financial instruments
(1) Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) are initially stated at fair values when acquired (deducting cash dividends that have been declared but not distributed and bond interests that have matured but not been drawn), and relevant transaction expenses are included in the current profit and loss.
The interests or cash dividends to be received during the holding period are recognized as investment income. Change in fair values is included in the current profit and loss at the end of the period.
Upon the disposal, the difference between the fair value and initial book-entry value is recognized as investment income upon disposal; meanwhile, adjustment is made to gains or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recorded at fair values when acquired
(deducting cash dividends that have been declared but not distributed and bond
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 interests that have matured but not been drawn).
The interest income is calculated and recognized at amortized cost and effective interest rates (or the nominal interest rate, if there is small difference between the effective interest rate and the nominal interest rate) and is charged to the investment income. The effective interest rates are determined upon acquisition and remain unchanged during the expected remaining period, or a shorter period if applicable. Difference between the proceeds and the book value of the investment is recognized as investment income upon disposal.
(3) Accounts receivable
Forcreditor‘s rights receivable arising from external selling commodities or providing service by the Company and other creditor's rights in respect of liability instruments of other enterprises (excluding those quoted in an active market) held by the Company, including accounts receivable, other receivables, notes receivables, prepayments, long-term receivables etc., the initial recognition amount shall be the contract price or agreed price receivable due from purchasing party. The initial amount of the accounts receivable with financing nature are recognized based on the present value.
The difference between the amount obtained and the book value of the accounts receivable is included in current profit and loss upon recovery or disposal.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values (deducting cash dividends that have been declared but not distributed and bond interests that have matured but not been drawn) and transaction costs when acquired. The interests or cash dividends to be received during the holding period are recognized as investment income. Available-for-sale financial assets are measured at fair value at the end of the period, and changes in fair value are included in the capital reserves (other capital reserves). those equity instrument investments not quoted in an active market and whose fair value cannot be reliably measured, and the derivative financial assets linked to and settled by way of delivery of such equity investments are measured at the cost.
Difference between the proceeds and the book value of the financial assets is recognized as gain or loss on investment upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which is originally and directly included in theowners‘ equity shall be transferred out and charged to the current gains or losses.
(5) Other financial liabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses. The subsequent measurement is based on amortized costs. They are subsequently measured at amortized cost.
3.10.3 Recognition and measurement for transfer of financial assets
If the Company has transferred nearly all of the risks and rewards relating to the ownership of the financial assets to the transferee, they shall be derecognized. If it retains nearly all of the risks and rewards relating to the ownership of the financial assets, they shall not be derecognized.
In judging whether the transfer of a financial asset meets the above requirements of derecognizing financial assets, the principle of substance over form is adopted. The
Company divides the transfer of a financial asset into entire financial asset transfer and
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 partial transfer. As for the entire financial asset transfer which is qualified for derecognition, the difference between the following two amounts is recognized in the current profit and loss: The Company divides the transfer of a financial asset into entire financial asset transfer and partial transfer. As for the entire financial asset transfer which is eligible for derecognition, the difference between the following two amounts is recognized in the current profit and loss:
i) Book value of the transferred financial assets;
ii) Sum of the price received from the transfer with the cumulative change in the amount of fair value directly recorded in the originalowners‘ equity (involving the case when the transferred financial assets are those available for sale).
As for the partial financial assets transfer which are eligible for derecognition, the whole book value of the transferred financial assets should be apportioned in accordance with their respective relative fair value between the derecognized parts and the recognized parts; and the difference between the following two amounts is recognized in the current profit and loss:
(i) book value of the derecognized parts;
ii) sum of the consideration received from the derecognized parts with the amount of the derecognized parts corresponding to the cumulative changes in the amount of fair value directly included in the originalowners‘ equity (involving the case when the transferred financial assets are those available for sale).
If the transfer of financial assets does not satisfy requirements for derecognition, the financial assets shall continue to be recognized, and the consideration received will be recognized as financial liabilities.
3.10.4 Conditions for derecognition of financial liabilities
Financial liabilities shall be entirely or partially derecognized if the present obligations derived from them are entirely or partially discharged. Where the Company enters into an agreement with a creditor so as to substitute the current financial liabilities with new ones, and the contract clauses of which are substantially different from those of the current ones, it shall recognize the new financial liabilities in place of the current ones.
If material amendments have been made to all or part of contract terms of current financial liabilities, all or part of current financial liabilities are derecognized, and the financial liabilities with amended terms are recognized as new financial liabilities.
Upon entire or partial derecognition of financial liabilities, differences between the carrying amounts of the derecognized financial liabilities and the consideration paid (including non-monetary assets surrendered or new financial liabilities assumed) are charged to profit or loss for the current period.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 If the Company repurchases part of financial liabilities, it shall distribute, on the repurchase day, the whole book value of the financial liabilities in accordance with the relatively fair value between the part to be recognized continuously and the part to be derecognized. The balance between the book value distributed to the part which has been derecognized and the consideration paid to it (including non-cash assets which have been transferred out or the new financial liabilities it assumed), shall be included in current profit and loss.
3.10.5 Recognition of fair values of financial assets and financial liabilities
The fair value of the financial instrument with an active market is determined based on the quotation in the active market. The fair value of the financial instrument without an active market is determined using valuation techniques. In terms of the estimation, the estimation technology which is applicable in the current circumstance and supported by enough available data and other information is adopted and the input value which is similar to the features of assets and liabilities and taken into account of by the market participants in the transaction of relevant assets or liabilities are selected by the Company, which give priority in use of the relevant observable value. The unobservable value is used only when the relevant observable value cannot be obtained or is impracticable.
3.10.6 Testing and accounting treatment of financial assets (excluding accounts receivable) Except for the financial assets measured at fair values through current profit and loss, the book value of financial assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired, provision for impairment shall be made.
(1) Provision for impairment of available-for-sale financial assets:
If the fair values of available-for-sale financial assets have significantly declined at the period end, or it is expected that the trend of decreases in values is non-temporary after consideration of all the relevant factors, impairment shall be recognized, and the accmulated loss on decreases in fair values previously charged directly to capital reserves are reversed and recognized as impairment loss.
For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current profit and loss.
Impairment losses on available-for-sale equity instruments shall not be reversed through profit or loss.
(2) Provision for impairment of held-to- maturity investments:
Measurement of provisions for impairment loss on held-to-maturity investments is similar to that applicable to provisions for impairment loss on receivables.
3.11 Provision for bad debt of accounts receivable
3.11.1 Significant accounts receivable with individual provision for bad debt:
Assessment basis or standard of individually significant amount: Accounts receivable have an individual amount of more than RMB5 million, and other receivables have an individual amount of RMB3 million.
Individual provision for bad debt of significant accounts receivable:
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 The seprate impairment tests are carried out for the accounts receivable. Provision for bad debts shall be made at the difference of present values of estimated future cash flows in short of their book values and included in current profit and loss, if any objective evidence indicates the impairment. The unimpaired accounts receivable as shown by the separate test result are put into the relevant portfolio for provision for bad debt.
3.11.2 Accounts receivable with provision for bad debts accrued by credit risk features portfolio:
Method of bad-debt provision made in terms of the credit risk features portfolio
Accounts receivable without provision for
bad debt Aging analysis method
Bad-debt provision made under the aging analysis method in the portfolio:
Proportion of provision Provision for bad debt
Aging for accounts receivable of other receivables
(%) (% )
1-6 months (including 6 months ) 0 0
6-12 months 5 5
1-2 years (including 1 year) 10 10
2-3 years (including 2 years) 30 30
3-4 years (including 3 years) 50 50
4-5 years (including 4 years) 80 80
Over 5 years (including 5 years) 100 100
3.11.3 Insignificant accounts receivable with individual provision for bad debt
Reasons for individual provision for bad debts: If there is any clear evidence indicating that the receivables cannot or are unlikely to be recovered, for example, the bankruptcy, insolvency, insufficient cash flow of the debtor, or the insolvency in a short time due to the production halt resulting from the severe natural disaster, or the accounts receivable may be exposed to risk as indicated by other evidence, the individual provision for bad debt will be made.
Method of provision for bad debt: The provision for bad debt is individually recognized at the difference between the book value and the present value of estimated future cash flow. Note: No provision is made for the bad debts of the current account of transactions with related parties.
3.12 Inventories
3.12.1 Classification of inventories
Inventories are classified into: raw materials, revolving materials, consigned processing materials, low-cost consumables, packaging materials, stock commodities, goods in progress, semi-finished goods, finished goods, etc.
3.12.2 Valuation of dispatched inventories
The inventories dispatched are measured by weighted average method.
3.12.3 Basis for determination of net realizable value of different categories of inventories Net realizable values of merchandise inventories held directly for sale, such as finished goods, merchandise inventories, and available-for-sale materials, are measured at the
estimated selling prices less estimated sales expenses and relevant taxes and surcharges in
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 the normal production process. Net realizable values of material inventories which need further processing are measured at the estimated selling prices less the estimated costs of completion, estimated sales expenses and relevant taxes and surcharges in the normal production process. Net realizable values of inventories held for the purpose of fulfillment of sales contracts or service contracts should be calculated on the basis of the contract prices; if the quantity of inventories held exceeds that stated in the contract, the net realizable values of the excessive part should be calculated on the basis of normal selling prices.
The Company shall make provisions for impairment loss on diminution in value of inventories on an individual basis at the year end. For inventories with large quantities and relatively low unit prices, the provisions for loss on diminution in value of inventories shall be made on a category basis. For the inventories related to the product portfolios manufactured and sold in the same area, and of which the final usage or purpose is identical or similar thereto, and which is difficult to separate from other items for measurement purposes, the provisions for impairment loss on diminution in value of inventories may be made on a portfolio basis.
The net realizable value of inventory items is determined based on the market price on the balance sheet date, unless there is clear evidence that the market price is abnormal on the balance sheet date.
The net realizable value of inventory items as at the end of the period is determined based on the market price on the balance sheet date.
3.12.4 Inventory system
The perpetual inventory system is adopted.
3.12.5 Amortization of low-cost consumables and packaging materials
(1) Low-cost consumables are amortized under the lump-sum method;
(2) Packing materials are amortized under the lump-sum method.
3.13 Assets classified as held-for-sale assets
The component (or non-current asset) will be recognized as the thing held for sale, if all the following conditions are met at the same time:
(1) Such component can be sold as it is, in accordance with the usual terms on its sales;
(2) The Company has been an integral part of the disposal of the (non-current assets) made a resolution, such as the need to obtain the required shareholder approval, has the approval of the shareholders' meeting or the appropriate authority;
(3) The Company has signed an irrevocable transfer agreement with the transferee;
(4) Such transfer will be completed within one year.
3.14 Long-term equity investment
3.14.1 Judgment criteria of joint control or effect of material impact
Common control refers to the control shared over an arrangement in accordance with the relevant stipulations, and the decision-making of related activities of the arrangement should not be made before the party sharing the control right agrees the same. Where the Company exercises common control over the investee together with other parties to the joint venture and enjoys the right on the investee's net assets, the investee is a joint venture of the Company.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those polices. Where the Company has significant influences on an investee, the investee shall be an associate of the Company.
3.14.2 Determination of initial investment cost
(1) Long-term equity investment acquired from business combination
For business combination under common control: If the Company makes payment in cash, transfers non-cash assets or bears debts and issues equity securities as the consideration for the business combination, the share of owners' equity of the acquiree obtained on the combination date in the book value of the ultimate controller's consolidated financial statement is recognized as the initial cost of the long-term equity investment. Where additional investment or other reasons make the control over the investee under the same control possible, the initial investment cost of the long-term equity investments is measured at the share of net assets of the acquiree on the combination date in the book value of the ultimate controller's consolidated financial statements. The stock premium is adjusted according to the difference between the initial cost of long-term equity investments on the combination date and the sum of the book value of long-term equity investments before combination and the book value of the consideration further paid for obtaining shares; if there is no sufficient share premium for write-downs, the retained earnings are offset.
For business combination not under common control: the Company recognizes the combination cost determined on the combination date as the initial cost of long-term equity investment. Where additional investment, or other reasons make the control over the investee not under the same control possible, the initial investment cost under the cost method will be the sum of the book value of the equity investments previously held and the newly increased investment costs.
(2) Long-term equity investment acquired by other means
The initial costs of a long-term equity investments obtained by payments of cash shall be the purchase prices actually paid.
The initial costs of long-term equity investments in equity securities shall be stated at their fair values.
If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out and traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary assets are determined based on the fair values of the assets traded out unless there is any conclusive evidence that the fair values of the assets traded in are more reliable; if the exchange of non-monetary assets does not meet the above criteria, the book value of the assets traded out and the relevant taxes and surcharges payable are recognized as the initial cost of long-term equity investment traded in.
The initial costs of long-term equity investments arising from debt restructuring shall be stated at their fair values.
3.14.3 Subsequent measurement and recognition of profit or loss
(1) Long-term equity investment calculated under the cost method
The Company applies cost method to account for the long-term equity investments of subsidiaries. Except for the price actually paid upon acquisition or the cash dividends or profit included in the price that are declared but not yet paid, the Company recognizes investment income for the current period at the share of the cash dividends or profits declared and released by the investee.
(2) Long-term equity investment calculated under the equity method
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Long-term equity investments in associates and in joint ventures are accounted for under the equity method. If the cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investee when the investment is made, the difference will not be adjusted to the initial cost of long-term equity investment; if the cost of initial investment is in short of the proportion of the fair value of the net identifiable assets in the investee when the investment is made, the difference will be included in the current profit and loss.
The Company recognizes the investment income and other comprehensive income according to the net gain or loss and other comprehensive income of the investee attributable to the Company, and adjusts the book value of long-term equity investment; reduces the book value of long-term equity investments according to the profit or cash dividends declared by the investee and attributable to the Company; and adjusts the book value of the long-term equity investments in the investee, as to the change in owners' equities other than the net gain or loss, other comprehensive income and profit distribution of the investee, and charges the same to the owners' equities.
When the share in net profit and loss of the investee is recognized, the fair value of the identifiable net assets of the investee when the investment is obtained shall be taken as a basis and the share will be determined after the net profit is adjusted in accordance with the Company's accounting policies and accounting periods. During the period of holding the investment, if the investee is capable of providing consolidated financial statements, the profit or loss shall be measured based on the net profit and other changes in equity recorded in the consolidated financial statements.
The profit and loss of the internal transactions that are not realized arising among the Company, affiliated enterprises, and joint ventures will be offset at the part attributable to the Company and the investment income will be recognized on that basis. For internal trading losses that have not occurred with the investee, they will be fully recognized if they belong to the asset impairment losses. The trading of assets between the Company and its associates or joint ventures, which constitutes business, are treated according to the policies disclosed in "Note 3.5 Accounting Treatment of Combination of enterprises under common control and enterprises not under common control" and "Note 3.6 Preparation of consolidated financial statements".
When the Company confirms that it should share losses of the investee, treatment shall be done in following sequence: Firstly, the book value of the long-term equity investment shall be reduced. Secondly, where the book value is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of other long-term equity which form net investment in the investee in substance and the book value of long term receivables shall be reduced. finally, after all the above treatments, if the Company is still responsible for any additional liabilities in accordance with the provisions stipulated in the investment contracts or agreements, estimated liabilities are recognized and included into current investment loss according to the obligations estimated to undertake.
(3) Disposal of long-term equity investment
Upon disposal, the difference between the book value and the price obtained is recognized in current profit and loss.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Disposal of long-term equity investments accounted for under the equity method, which is previously charged to other comprehensive income is treated in proportion on the same basis for direct disposal of relevant assets of liabilities by the investee. Owner's equities recognized arising from change in other owners' equities other than net gain or loss, other comprehensive income and profit distribution of the investee are carried forward to the current profit or loss in proportion, except for the other comprehensive income arising from the change on re-measurement of the net liabilities or net assets under the defined benefit plan by the investee.
In case of loss of common control over or material impact on the investee due to the disposal of part of the equity investments, the remaining equity after the disposal are computed according to the principles for recognition and measurement of financial instruments, and the difference between the fair value and book value on the day of loss of common control or material impact is charged to the current profit or loss. For other comprehensive income that is recognized from original equity investment by using the equity method, the accounting treatment will be made on the basis the same as that for the direct disposal of related assets and liabilities with the investee when the equity method is terminated for accounting purpose. Owner's equities recognized arising from change in other owners' equities other than net gain or loss, other comprehensive income and profit distribution of the investee are entirely transferred to the current profit or loss when the accounting under the equity method is ended.
In case of loss of common control over or material impact on the investee due to the disposal of part of the equity investments, the remaining equity after the disposal are computed under the equity method, with the adjustment made as if such remaining equities are calculated under the equity method after they are obtained, when the separate financial statement is prepared; the remaining equities after disposal leading to the incapable exercise of common control over or material impact on the investee shall be treated according to the principles for recognition and measurement of financial instruments, and the difference between the fair value and book value on the day of loss of common control or material impact is charged to the current profit or loss.
If the equities disposed were obtained from the business merger by reason of additional investment or others, and the remaining equities after disposal are calculated under the cost method or equity method when the individual financial statement is prepared, other comprehensive income and other owners' equities recognized and arising from the calculation of the equity investment held before the acquisition date under the equity method will be carried forward in proportion; if the remaining equities after disposal are treated according to the principles for recognition and measurement of financial instruments, both of other comprehensive income and other owners' equities are entirely carried forward.
3.15 Investment property
Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land leased out under operating leases, land held for long-term capital appreciation, buildings leased out under operating leases, (including buildings that have been constructed or developed for future lease out under operating leases, and buildings that are being constructed or developed for future lease out under operating leases).
The Company adopts cost model to measure all current investment properties. The Company adopts the same depreciation policy for the investment property measured at cost model building for renting as that for theCompany‘s fixed assets and the same amortization policy of land use right for renting as that for theCompany‘s intangible assets.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 3.16 Fixed assets
3.16.1 Criteria for recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting or business management with useful lives exceeding one accounting year. Fixed assets will only be recognized when all the following criteria are satisfied: Fixed assets will only be recognized when all the following criteria are satisfied: (1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and
(2) the costs of the fixed asset can be measured reliably.
3.16.2 Depreciation method
Depreciation of fixed assets is provided on a category basis using the straight-line method. The depreciation rates are determined according to the categories, estimated useful lives and estimated net residual rates of fixed assets. If the components of a fixed asset have different useful lives or cause economic benefit for the Company in different ways, different depreciation rate or method shall be adopted for depreciation on an individual component basis.
For fixed assets acquired under finance leases, if it is reasonably certain that the ownership of the leased assets will be transferred to the lessee by the end of the lease term, they shall be depreciated over their remaining useful lives; otherwise, the leased assets shall be depreciated over the shorter of the lease terms or their remaining useful lives.
Depreciation of fixed assets, depreciation period, residual rate and annual depreciation rates are as follows:
Annual
Depreciation Residual
Category depreciation rates
periods (years) rates(%)
(%)
Buildings and constructions 25-35 3 2.77-3.88
Machinery equipment 7-15 3 6.47-13.86
Transportation equipment 8-10 3 9.70-12.13
Other equipment 5-10 3 9.70-19.40
3.16.3 Basis for recognition and measurement of fixed assets acquired under the finance lease
The fixed assets acquired under financing lease are recognized if one of the following conditions is specified by the Company and the leaser in their lease agreement:
(1) The ownership of the leased assets is transferred to the Company by the end of the lease terms;
(2) The Company has the option to purchase the assets at prices which are expected to be sufficiently lower than fair values at the date the option becomes exercisable that, at the inception of the leases, it is reasonably certain that the option will be exercised; (3) The lease terms cover the major part of the economic lives of the assets, even if titles are not transferred;
(4) At the inception of the leases, the present values of the minimum lease payments amount to at least substantially all of the fair values of the leased assets.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 On the lease commencement date, the book-entry value of a fixed asset acquired under financing lease is measured at theasset‘s fair value or the present value of the minimum lease payment, whichever is the lower. The minimum lease payment is recorded as the book-entry value of the long-term payables, and the difference between them is deemed as the unrecognized financing expenses.
3.17 Construction in progress
The book values of the construction in progress are stated at total expenditures incurred before reaching working condition for their intended use. For construction in progress that has reached working condition for intended use but relevant budgets for the completion of projects have not been completed, the estimated values of project budgets, prices, or actual costs should be included in the costs of relevant fixed assets, and depreciation should be provided according to relevant policies of the Company when working condition is reached. After the completion of budgets needed for the completion of projects, the estimated values should be substituted by actual costs, but depreciation already provided is not adjusted.
3.18 Borrowing costs
3.18.1 Principles for recognition of capitalization of borrowing costs
Borrowing costs include the interest on borrowings, the amortization of discount or premium, auxiliary expenses, exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or production of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowing costs should be recognized as costs according to the amount incurred and be included into current profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may reach their intended use or sale status only after long-time acquisition and construction or production activities.
Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1) the asset disbursements have already incurred, which shall include the cash paid, non-cash assets transferred or interest bearing debts undertaken for the acquisition and construction or production activities for preparing assets eligible for capitalization; (2) the borrowing costs has already incurred; and
(3) the acquisition and construction or production activities which are necessary to prepare the asset for its intended use or sale have already started.
3.18.2 Capitalization period of borrowing costs
Capitalization period refers to the period from commencement of capitalization of borrowing costs to its cessation; period of suspension for capitalization is excluded. When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of the borrowing costs shall be ceased.
Where construction for assets purchased, constructed or manufactured eligible for capitalization is completed in stages, which can be used while construction of the other parts continues, capitalization of attributable borrowing costs should cease when substantially all of the activities necessary to prepare that part for its intended use or sale are complete.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Where construction for each part of assets purchased, constructed or manufactured has been completed separately but can be used or sold only after the entire assets have been completed, capitalization of attributable borrowing costs should cease at the completion of the entire assets.
3.18.3 Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for capitalization are interrupted abnormally and this condition lasts for more than three months, the capitalization of borrowing costs should be suspended; if the interruption is necessary for the acquisition and construction or production to prepare the assets for their intended use or sale, the capitalization of borrowing costs should continue. The borrowing costs incurred during interruption are recognized in the current profit and loss, and the capitalization of borrowing costs continues after the restart of the acquisition and construction or production activities of the assets.
3.18.4 Capitalization rate and measurement of capitalized amount of borrowing costs As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization, the to-be-capitalized amount shall be determined at interest expense of special borrowing actually incurred in the current period less the interest income of the borrowings unused and deposited in bank or return on temporary investment. As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the to-be-capitalized amount should be calculated by multiplying the weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the capitalization rate of used general borrowings. The capitalization rate is calculated by using the weighted average interest rate of general borrowings.
3.19 Intangible assets
3.19.1 Measurement of intangible assets
(1) The Company initially measures intangible assets at cost on acquisition;
The costs of external purchase of intangible assets comprise their purchase prices, related taxes and surcharges and any other directly attributable expenditure incurred to prepare the asset for its intended use. If payments for the purchase of intangible assets are extended beyond the normal credit terms with financing nature, the costs of intangible assets are determined on the basis of present values of the purchase prices. For intangible assets obtained from debtors in settlement of his liabilities in case of debt restructuring, they should be initially stated at their fair values. Differences between the book values and the fair values of the intangible assets are charged to profit or loss for the current period.
If the exchange of non-monetary assets has commercial substance, and the fair values of these assets can be measured reliably, the book-entry values of intangible assets traded in are based on the fair values of the intangible assets traded out unless there is any conclusive evidence that the fair values of the assets traded in are more reliable. If the exchange of non-monetary assets does not meet the above criteria, the costs of the intangible assets traded in should be the book values of the assets traded out and relevant taxes and surcharges paid, and no profit or loss shall be recognized.
(2) Subsequent measurement
The useful lives of the intangible assets are analyzed and determined on their acquisition.
As for intangible assets with limited useful life, straight-line amortization method is
adopted in the period when the intangible assets generate economic benefit for
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 enterprise; if the period when the intangible assets generate economic benefit for enterprise cannot be forecasted, the intangible assets shall be deemed as those with indefinite useful life and shall not be amortized.
3.19.2 Estimate of the useful life of the Intangible assets with finite useful lives:
The useful lives and amortization methods of intangible assets with limited useful lives are reviewed at each year end.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year were not different from those estimated before.
3.19.3 Basis for judgment of intangible assets with indefinite useful life and procedures for review of the life thereof
The useful lives and amortization method of intangible assets with limited useful lives are reviewed at the end of each period.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year were not different from those estimated before.
3.19.4 Specific criteria of classification into the research phase and the development phase Expenditures on an internal research and development project shall be classified into expenditures on the research phase and expenditures on the development phase.
Research phase: Research is original and planned investigation, undertaken with the prospect of gaining new scientific or technical knowledge and understanding.
Development phase: Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, or products before the start of commercial production or use.
3.19.5 Criteria for capitalization of qualifying expenditures during the development phase Expenditures arising from development phase on internal research and development projects must be capitalized if the Company can satisfy all of the following criteria: (1) It is technically feasible to finish intangible assets for use or sale;
(2) It is intended to finish and use or sell the intangible assets;
(3) the method that the intangible assets generate economic benefits, including existence of a market for products produced by the intangible assets or for the intangible assets themselves, shall be proved. Or, if to be used internally, the usefulness of the assets shall be proved;
(4) adequate technical, financial, and other resources are available to complete the assets, and the Company has the ability to use or sell the assets; and
(5) The expenditures attributable to the intangible assets during their development phase can be reliably measured.
If the above conditions are not satisfied, expenditures on the development phase shall be included in current profit and loss when they occur. Expenditures on the research phase shall be included in current profit and loss when they occur.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 According to the Accounting Standards for Enterprises in combination with the actual situation of the Company, the period between the report on pre-study of project to the issuance of project assessment and examination report is defined as the research state, in which the expenditures incurred are expensed when incurred and charged to the current profit or loss.
In the development stage, research findings or other knowledge is applied to a plan or design for the production of new or substantially improved materials, devices, or products before the start of commercial production or use. This phase is equipped with the basic conditions for the formation of a new product or technology to a greater extent.
According to the actual situation of the Company, the period between the adoption of project assessment and examination with the assessment and examination report issued to the batched production is defined as the development stage. The project development expenditures will be capitalized, if the conditions for capitalization of development expenditures are met.
All expenditures incurred on research of application of basic techniques are classified as research stage expenditures and charged to the current profit or loss when incurred.
3.20 Impairment of long-term assets
The Company will conduct the impairment test if any evidence suggests that the long assets, such as the long-term equity investment and the investment property, fixed assets, construction in progress and intangible assets, are impaired on the balance sheet date. If impairment test results indicate that the recoverable amounts of the assets are lower than their carrying amounts, the provision for impairment is made based on the differences which are recognized as impairment losses. The recoverable amounts of intangible assets are the higher of their fair values less costs to sell and the present values of the future cash flows expected to be derived from the assets. The provision for assets impairment is calculated and recognized by the individual asset. If it is difficult to estimate the intangible amount of an individual asset, the Company shall estimate the recoverable amount of the asset portfolio that the individual asset belongs to. The asset portfolio is the minimum asset group that can independently generate the cash inflow.
At least the goodwill impairment test is conducted at the year-end.
The Company conducts an impairment test for the goodwill. The book value of goodwill arising from business combinations is amortized to relevant asset groups with a reasonable method since the date of acquisition; or amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. The book value of goodwill is amortized to relevant asset groups or combinations of asset groups according to the proportion of the fair value of such asset groups or combinations of asset groups in the total fair value of relevant asset groups or combinations of asset groups. Where the fair value cannot be reliably measured, it should be amortized according to proportion of the book value of each asset group or combination of asset group in the total book value of relevant asset groups or combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill, if any indication shows that the asset groups or combinations of asset groups related to the goodwill may be impaired, the Company shall first conduct an impairment test on the asset groups or combinations of asset groups not containing goodwill, calculate the recoverable amount and compare it with the relevant book value to recognize the corresponding impairment loss. Then the Company shall conduct an impairment test on the asset groups or combinations of asset groups containing goodwill, and compare the book value of these asset groups or combinations of asset groups (including the book value of the goodwill apportioned thereto) with the recoverable amount. Where the recoverable amount of the relevant asset groups or combinations of asset groups is lower than the book value thereof, the Company shall recognize the impairment loss of the goodwill.
The above impairment loss is not reversed in the future accounting period once recognized.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 3.21 Long-term deferred expenses
Long-term deferred expenses refer to the expenses which have been already incurred but will be borne in the current period and in the future with an amortization period of over 1 year. Long-term deferred expenses are evenly amortized over the benefit period.
3.22 Employee compensation
3.22.1 Accounting treatment of short-term remuneration
During the accounting period in which employees provide service to the Company, the short-term remuneration actually incurred is recognized as liabilities and charged to the current profit or loss or the relevant assets cost.
The medical insurance premium, work-related injury insurance premium and the housing provident fund paid by the Company for its employees, together with the labor union expenditures and employee education are used to calculate and determine the relevant employee compensation amount based on the prescribed accrual basis and accrual proportion.
The non-monetary benefits for employees that can be measured reliably are measured at fair value.
3.22.2 Accounting treatment of benefits paid after departure
The basic endowment insurance premium and unemployment insurance premium paid by the Company for its employees in accordance with relevant provisions of the local government are recognized as liabilities and charged to the current profit or loss or the relevant assets cost, with the payable amount calculated based on the local prescribed payment base and percentage, during the accounting period in which the employees provide services to the Company.
In addition to the basic endowment insurance, the Company also build the enterprise annuity payment system (supplementary pension insurance) in accordance with relevant national policies established a pension payment system / corporate pension plans. The Company pays a certain percentage of the total employee compensation to the local social institution for the payment/payment under annuity plan, and record the relevant expenditures into the current profit or loss or the relevant assets cost.
See "Note 5.22 Employee compensation payable" for details.
3.22.3 Accounting treatment of dismissal welfare
Where the Company cannot unilaterally withdraw when termination benefits due to termination of employment or layoff proposal offered, or confirm the reorganization involves the payment of termination benefits when associated costs or expenses (both what early), confirm termination benefits employees pay liabilities, and profit or loss.
3.23 Estimated liabilities
3.23.1 Recognition criteria for estimated liabilities
The Company recognizes the estimated liabilities when the obligations relating to litigation, debt-guarantee, loss contract, restructuring and other contingencies satisfy the following conditions simultaneously:
(1) That obligation is a present obligation of the Company;
(2) The performance of such obligation is likely to result in outflow of economic benefits from the Company; and
(3) The amount of the obligation can be measured reliably.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 3.23.2 Measurement of a variety of estimated liabilities
The estimated liabilities of the Company are initially measured as the best estimate of expenses required for the performance of relevant present obligations.
When determining the best estimate, the Company shall comprehensively consider the risks, uncertainties, time value of money, and other factors relating to the contingencies. If the time value of money is significant, the best estimates shall be determined after discount of relevant future cash outflows.
The best estimates shall be treated as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the outcomes within this range are equal, the best estimate shall be determined at the average amount of upper and lower limits within the range.
Given the fact that there is no continuous range (or interval) for the necessary expenses, or probabilities of occurrence of all the outcomes within this range are unequal despite such a range exists, in case that the contingency involves a single item, the best estimate shall be determined at the most likely outcome; if the contingency involves two or more items, the best estimate should be determined according to all the possible outcomes with their relevant probabilities.
When all or part of the expenses necessary for the settlement of an estimated liabilities are expected to be compensated by a third party or other parties, the compensation shall be separately recognized as an asset only when it is virtually certain that the compensation will be received. The amount recognized for the compensation shall not exceed the book value of the estimated liabilities.
See the Note 5.28 Estimated Liabilities for details.
3.24 Share-based payment
The share-based payment is the transaction the Company has to grant the equity instrument to employees or assume the liability determined based on the equity instrument, for the service provided by the employees[or otherparties]. The share-based payments of the Company can be divided into the equity-settled share-based payments and the cash-settled share-based payments. 3.24.1 Equity-settled share-based payments and equity instruments
In case of the equity-settled share-based payment for the service provided by employees, the measurement is based on the fair value of the equity instruments granted to employees. Where the Company carries out a restricted share-based payment, the employees subscribe shares by contributing capital, and the shares cannot be traded or transferred in the market until they satisfy the conditions for removing the freeze; if the conditions for removing the freeze as prescribed by the ultimate stock stimulating plan fail to be satisfied, the Company shall repurchase the shares as previously agreed. When the Company receives the payments for subscription of restricted shares from the employees, it shall recognize the share capital and capital reserves (share capital premiums) according to the payments for subscription received, and recognize a liability and treasury shares with respect to the repurchase obligation. On every balance sheet date during the waiting period, the Company estimates the quantity of the exercisable equity instruments in light of the latest subsequent information, such as the change in the number of employees obtaining the exercisable equity instrument or whether the specified performance requirements are met, based on which the services obtained in the current period are charge to the relevant costs or expenses at the fair value on the grant date, with the capital reserves added correspondingly. Those payments which are exercisable immediately after the grant are charged to the relevant costs or expenses, with the capital reserves added correspondingly. After the vesting date, the recognized relevant costs or expenses or total amount of owners' equity
shall not be adjusted any more.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 No cost or expense is recognized for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms had not been modified. In addition, an expense is recognized for any modification which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled share-based payment is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. Where employees or other parties are permitted to choose to fulfill non-vesting conditions but have not fulfilled during the pending period, equity-settled share-based payments are deemed cancelled. However, if a new equity instrument is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the new equity instrument are treated as if they were a modification of the original award.
3.24.2 Cash-settled share-based payments and equity instruments
The cash-settled share-based payment is measured in accordance with the fair value of liability calculated and confirmed based on the shares or other equity instruments undertaken by the Company. The cash-settled share-based payment is initially measured in accordance with the fair value on the vesting date, in consideration of the terms and conditions for granting the equity instruments. If the right may be exercised immediately after the grant, the fair value of the liabilities shall, on the vesting date, be included in the costs or expenses, together with a corresponding increase in the liabilities; if the right cannot be exercised until the vesting period comes to an end or until the prescribed performance conditions are met, then within the vesting period, the services obtained in the current period shall, based on the best estimate of the number of vested equity instruments, be included in the relevant costs or expenses at the fair value of the liabilities on the vesting date, together with a corresponding increase in the liabilities. On each balance sheet date and on each account date prior to the settlement of the relevant liabilities, the fair values of the liabilities are re-measured and the changes in the fair values thereof are included in the current profits and losses.
3.25 Revenues
3.25.1 General principles for recognition of revenues from sales of goods:
(1) The Company has transferred to the buyer the significant risks and rewards of ownership relevant to the goods in question;
(2) The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
(3) The relevant amount of revenue can be measured reliably;
(4) It is probable that the economic benefits related to the transaction will flow into the Company; and
(5) The relevant costs incurred or to be incurred can be measured reliably.
3.25.2 Concrete principles for revenues from primary businesses
(1) Sales of complete vehicles: the operation management department of the Sale
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Company shall research and review the "saved" orders submitted by the dealers; after an approval upon review, the finance department shall, in accordance with the lines of credit of customers, check the situation regarding collection of payments and conduct a financial audit on these orders; the warehousing department shall issue an ex-warehouse list according to the recognized orders, which will be marked with the words "Delivered"; then, a delivery people of the third party, i.e. a transport company shall sign the ex-warehouse list, upload the goods and transport them; After the acceptance by the customers upon check, the ex-warehousing list shall be signed for confirmation. According to the information relating to the sales orders indicating that the relevant goods "have been delivered", the finance department shall check the ex-warehouse list signed by the delivery person on behalf of his or her transport company with the corresponding sales contract that no error has been committed; subsequently, it shall recognize that the major risks and rewards relating to the goods' properties have been transferred to the buyer and then issue a sales invoice as well as recognize the sales revenues;
(2) Sales of engines: at the beginning of every year, the Company enters into a sales contract including the terms relating to basic unit price with the customers; the method of delivery after payment is adopted for the sales of engines; the goods shall be arranged to be delivered after the payments for goods are paid up as stipulated by the orders, a sales invoice shall be issued when the goods are delivered and the revenues from sales are recognized.
(3) Sales of automobile air-conditioner: the Air-conditioner Company deliveries goods according to the customers' production plans and safty stock; after the customers use the products, the salesmen issue a notification of making out an invoice according to the customers' monthly usage amounts and contracted prices, the finance department issues an invoice and the revenues from sales shall be recognized.
3.26 Government grants
3.26.1 Types
Government grants refer to the monetary or non-monetary assets obtained by the Company from the government for free. Government subsidies are classified into government subsidies related to assets and government subsidies related to income.
Government subsidies related to assets refer to the subsidies obtained by the Company from the government and used to form long-term assets through acquisition and construction or otherwise, including the financial appropriation for purchase of fixed assets or intangible assets and the finance discounts for special borrowings of fixed assets. Government subsidies related to income refer to those other than the government subsidies related to assets.
3.26.2 Recognition of time-point and accounting treatment
Government grants related to assets are recognized as deferred income and included in non-operating income over the useful lives of the assets constructed or purchased by stages;
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 If government subsidies related to income are used to compensate theCompany‘s relevant expenses or losses in future periods, such government subsidies should be recognized as deferred income on acquisition and be included into the current non-operating income in the period of recognizing relevant expenses; if government subsidies related to income are used to compensate theenterprise‘s relevant expenses or losses incurred, such government subsidies are directly included into the current non-operating income on acquisition. 3.27 Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets shall be recognized for deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred income tax assets shall be determined to the extent that the amount of future taxable income to be offset by the deductible loss or tax deduction to be likely obtained.
Taxable temporary differences are recognized as deferred income tax liabilities except in special circumstances.
Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not be recognized include: the initial recognition of goodwill; other transactions or events excluding business combinations, which affect neither accounting profits nor the taxable income (or deductible losses) when occurred.
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge liabilities simultaneously, the income tax assets and income tax liabilities of the Company for the current period shall be presented based on the net amount after offset.
When the Company has the legal rights to balance income tax assets and income tax liabilities for the current period with net settlement, and deferred income tax assets and deferred income tax liabilities are related to the income tax which are imposed on the same taxpaying subject by the same tax collection authority or on different taxpaying subjects, but, in each important future period in connection with the reverse of deferred income tax assets and liabilities, the involved taxpaying subject intends to balance income tax assets and liabilities for the current period with net settlement at the time of obtaining assets and discharging liabilities, deferred income tax assets and deferred income tax liabilities shall be presented based on the net amount after offset. 3.28 Leases
3.28.1 Accounting treatment of operating lease
(1) Lease fees paid by the Company for leased asset shall be amortized at straight-line method over the whole lease period (including rent-free period) and shall be included in the current expenses. Initial direct costs relating to lease transactions incurred by the Company shall be recognized as the current expenses.
If the expense related to the lease which shall be paid by the Company is assumed by the lessor of the asset, then such expenses shall be deducted from total lease fees, and the balances shall be amortized over the lease term s and charged to the current expenses.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 (2) Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the whole lease period (including rent-free period), and shall be recognized as lease income. Initial direct costs relating to lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts are material, they shall be capitalized and included in the current income on the same basis as the recognition of lease income.
If expenses relating to leases which should be borne by the lessee of the assets are paid by the Company, they shall be deducted from the total lease income and the balances shall be amortized over the lease terms by the Company.
3.28.2 Accounting treatment of financing lease
(1) Assets acquired under financing leases: At the commencement of the lease terms, assets acquired under financing leases shall be recorded at the lower of their fair values and the present values of the minimum lease payments, and the Company shall recognize the long-term payables at amounts equal to the minimum lease payments, and shall record the differences between book value of the leased assets and the long-term payables as unrecognized finance charges. The Company adopts the effective interest rate method for unrecognized financing charges, which shall be amortized over the lease terms and included in financial expenses. Initial direct costs incurred by the Company shall be included in the value of leased assets.
(2) Assets rented out under financing leases: At the commencement of the lease terms, the Company shall recognize the differences between the undiscounted rents receivable plus unguaranteed residual values and their present values as unrealized financing income, and shall recognize them as lease income during each period when rents are received. Initial direct costs associated with the lease transactions and incurred by the Company shall be included in the initial measurement of the financing lease receivable and lease income recognized over the lease terms shall be reduced accordingly. 3.29 Termination of operation
Termination of operation refers to any integral part that satisfies any of the following conditions, has been disposed or classified into assets held for sale by the Company and that is able to be separately distinguished upon operation and preparation of the financial statements:
(1) the integral part represents an independent primary business or a key operation region; (2) the integral part is an element of the plan of proposing to dispose an independent primary business or a key operation region; or
(3) the integral part is a subsidiary acquired only for the resale purpose.
3.30 Significant adjustments for changes in accounting policies and accounting estimates 3.30.1 Significant adjustments for changes in accounting policies
(1) Implementation of the standards revised in 2014 and newly promulgated by the Ministry of Finance
The Company has implemented the following accounting standards for business enterprises promulgated by the Ministry of Finance in 2014:
Accounting Standards for Business Enterprises– Basic Standards (Revised)
Accounting Standards for Business Enterprises No. 2– Long-term Equity Investment (Revised)
Accounting Standards for Business Enterprises No. 9– Employee Compensation (Revised)
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Accounting Standards for Business Enterprises No. 30– Presentation of Financial Statements (Revised)
Accounting Standards for Business Enterprises No. 33– Consolidated Financial Statements (Revised)
Accounting Standards for Business Enterprises No. 37– Presentation of Financial Instruments (Revised)
Accounting Standards for Business Enterprises No. 39– Measurement of Fair Value Accounting Standards for Business Enterprises No. 40– Joint Venture Arrangements Accounting Standards for Business Enterprises No. 41– Disclosure of Equity in Other Entities
The main effects on the implementation of the above accounting standard for business enterprises by the Company are as follows:
① Implementation of the Accounting Standards for Business Enterprises No. 2– Long-term Equity Investments (Revised)
In accordance with the Accounting Standards for Business Enterprises No. 2– Long-term Equity Investments (Revised), the Company reclassifies the investments satisfying the following conditions: 1) the Company has no common control or significant impact on the investees; 2) have no quoted prices in an active market; and 3) the fair value cannot be measured reliably, from the long-term equity investments into the available-for-sale financial assets for computation, and makes a retroactive adjustment.
② Implementation of the Accounting Standards for Business Enterprises No. 30– Presentation of Financial Statements (Revised)
In order to provide more reliable and related accounting information, the Company reclassifies the taxes prepaid into other current assets in accordance with the Accounting Standards for Business Enterprises No. 30– Presentation of Financial Statements (Revised), and makes a retroactive adjustment.
(2) During the reporting period of the Company, besides the above adjustments for changes in accounting policies, there are no other changes in principal accounting policies; the above adjustments for changes in accounting policies' effects on the items of the consolidated financial statements as at January 1, 2014 are as follows:
Nature of adjustments
Statement items Amount before Amount after Amount affected
for changes in
affected adjustment adjustment Increase/decrease
accounting policies
Other current assets 0 17,127,455.06 17,127,455.06
Implementation of new Taxes and surcharges
accounting standards payable 124,374,241.36 141,501,696.42 17,127,455.06
Available-for-sale
financial assets 0 0 0
Implementation of new Long-term equity
accounting standards investments: 689,241,790.19 689,241,790.19 0
Capital reserve 960,515,317.59 960,505,517.59 -9,800
Implementation of new Other comprehensive
accounting standards income 0 9,800.00 9,800
3.30.2 Major changes in accounting estimates
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 There is no major change in accounting estimates in the Company for the current year. 4. Taxation
4.1 Major tax types and tax rates applicable to the Company
Tax type Basis of tax assessment Tax rate
The output tax is calculated based on the revenue
from sales of goods and the provision of taxable
labor services according to tax law, and value
added tax payable should be the balance of the
output tax for the period after deducting the
Value-added tax (VAT) deductible input tax for the period. 17%
Consumption tax Levied based on the taxable sales revenues 3%
Business tax Levied based on the taxable income 5%
Urban maintenance and Levied based on the actual payment of business
construction tax tax, VAT and consumption tax 7%
Enterprise income tax Levied based on the taxable income 25%、15%
If there are subjects of tax payment subject to different enterprise income tax rates, the information notes shall be disclosed
Name of subject of tax payment Income tax rate
Chongqing Jianshe Motorcycle Co., Ltd. 25%
Chongqing Jianshe Sales Co., Ltd. 25%
Chongqing Jianshe Motorcycle Sales Co., Ltd. 25%
Chongqing Beifang Jianshe Import and Export T 25%
Shanghai Jianshe Motorcycle Co., Ltd. 25%
Chongqing Jianshe Automobile A/C Co., Ltd. 15%
4.2 Preferential tax treatment
Chongqing Jianshe Automobile A/C Co., Ltd., a subsidiary of the Company, is subject to the enterprise income tax rate of15% in 2014, as a result of the preferential enterprise income tax policies to promote the large-scale development of the western region in accordance with the Announcement on Issues of Enterprise Income Tax concerning In-depth Implementation of Western Region Large-scale Development Strategy (Announcement of the State Administration of Taxation[2012] No.12).
The Company and other subsidiaries pay the enterprise income tax at a tax rate of25%.
In accordance with the provisions of the Circular on Further Raising the Export Rebate Rates of Certain Goods (Cai Shui[2009] No.88) jointly promulgated by the Ministry of Finance and the State Administration of Taxation, the export rebate rate applicable to the motorcycle products of the Company is15%.
5. Notes to the items of consolidated financial statements
5.1 Cash and cash equivalents
Balance as at Balance as at
Item
December 31, 2014 January 1, 2014
Cash on hand 116,629.79 55,321.10
Bank deposits 35,438,955.27 170,167,026.66
Other cash and cash equivalents 157,362,464.22 218,092,254.52
Total 192,918,049.28 388,314,602.28
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Including: the details on restricted cash and cash equivalents due to mortgage, pledge or freezing are as follows:
Balance as at Balance as at
Item
December 31, 2014 January 1, 2014
Bank acceptance bills margin 157,344,806.52 207,478,217.39
L/C deposit 17,657.70 10,614,037.13
Total 157,362,464.22 218,092,254.52
5.2 Notes receivable
5.2.1 Presentation of notes receivable by category
Balance as at Balance as at
Item
December 31, 2014 January 1, 2014
Bank acceptance bill 45,673,753.36 81,086,424.87
Commercial acceptance bill 167,000.00
Total 45,673,753.36 81,253,424.87
5.2.2 Notes receivable endorsed or discounted by the Company as at December 31, 2014 and not yet due on the balance sheet date
Amount Amount not
Item derecognized as at derecognized as at
December 31, 2014 December 31, 2014
Bank acceptance bill 769,684,851.50
Commercial acceptance bill 8,780,000.00
Total 778,464,851.50
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
5.3 Accounts receivable
5.3.1 Disclosure of accounts receivable by category
Balance as at December 31, 2014 Balance as at January 1, 2014
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion
Book value Book value
Proportion of Proportion of
Amount Amount
provision
Amount
(%)
Amount
provision
(%)
(%) (%)
Accounts receivable with significant
single amount and provision for bad debt
made on an individual basis
Accounts receivable with provision for
bad debt made on a portfolio with similar
311,899,501.7
risk credit characteristics basis 274,568,553.53 99.94 19,554,863.81 7.12 255,013,689.72 327,852,003.52 98.89 15,952,501.75 4.87 7
Accounts receivables with insignificant
single amount and provision for bad debt
made on an individual basis 152,490.30 0.06 152,490.30 100.00 3,672,247.97 1.11 3,672,247.97 100.00
311,899,501.7
Total 274,721,043.83 100.00 19,707,354.11 7.17 255,013,689.72 331,524,251.49 100.00 19,624,749.72 5.92 7
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Accounts receivable with provision for bad debts made using the aging analysis method among those portfolios:
Balance as at December 31, 2014
Aging
Accounts Provision for bad Proportion of
receivable debts provision(%)
1-6 months (including 6 months) 240,081,685.66
6-12 months 4,616,271.82 230,813.59 5.00
1-2 years (including 1 year) 3,024,832.02 302,483.20 10.00
2-3 years (including 2 years) 845,052.94 253,515.88 30.00
3-4 years (including 3 years) 14,455,525.53 7,227,802.78 50.00
4 - 5 years (including 4 years) 24,685.96 19,748.76 80.00
Over 5 years (including 5 years) 11,520,499.60 11,520,499.60 100.00
Total 274,568,553.53 19,554,863.81 7.12
5.3.2 Provision for bad debts provided in the current year
The provision for bad debts provided in the current year amounts to RMB82,604.39. 5.3.3 Information on the top five accounts receivable by the debit balance as at December 31, 2014
The top five accounts receivable by the credit balance as at December 31, 2014 total RMB158,441,100.73, accounting for57.67% of total amount of balance as at December 31, 2014 of accounts receivable, and the balance as at December 31, 2014 of provision for bad debts provided correspondingly totals RMB6,355,544.00.
5.4 Advances to suppliers
5.4.1 Presentation of advances to suppliers by aging
Balance as at December 31,
Balance as at January 1, 2014
2014
Aging
Proportion Proportion
Book balance Book balance
(%) (%)
Within 1 year 19,066,002.02 82.25 28,899,206.76 88.27
1-2 years 1,950,850.06 8.42 1,430,183.64 4.37
2-3 years 283,268.49 1.22 274,913.20 0.84
Over 3 years 1,881,772.43 8.12 2,133,939.23 6.52
Total 23,181,893.00 100.00 32,738,242.83 100.00
5.4.2 Information on the top five advances to suppliers by the credit balance as at December 31, 2014
The top five advances to suppliers by the debit balance as at December 31, 2014 total RMB11,749,322.31, accounting for50.68% of total amount of balance as at December 31, 2014 of advances to suppliers.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
5.5 Dividends receivable
Balance as at Balance as at Investee Increase in 2014 Decrease in 2014
December 31, 2014 January 1, 2014 Chongqing Jianshe Yamaha Motor Co., Ltd. 15,000,000.00 15,000,000.00
Zhuzhou Jianshe Yamaha Motor., Ltd. 19,000,000.00 19,000,000.00
Chongqing Pingshan TK Carburettor Co., Ltd. 1,470,000.00 1,470,000.00
Total 35,470,000.00 35,470,000.00
5.6 Other receivables
5.6.1 Disclosure of other receivables by category
Balance as at December 31, 2014 Balance as at January 1, 2014
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion of
Book value
Proportion Proportion of
Book value
Amount Amount Amount Amount
(%) provision(%) (%) provision(%)
Other receivables with significant single
amount and provision for bad debt made on
an individual basis
Other receivables with provision for bad
debt made on a portfolio with similar risk
credit characteristics basis 20,645,642.63 46.08 5,026,701.67 24.35 15,618,940.96 28,949,492.81 88.64 5,003,156.86 17.28 23,946,335.95
Other receivables with insignificant single
amount and provision for bad debt made on
an individual basis 24,155,643.73 53.92 24,155,643.73 100.00 3,708,768.03 11.36 3,708,768.03 100.00
Total 44,801,286.36 100.00 29,182,345.40 65.14 15,618,940.96 32,658,260.84 100.00 8,711,924.89 26.68 23,946,335.95
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Other receivables with provision for bad debts made using the aging analysis method among those portfolios:
Balance as at December 31, 2014
Aging
Provision for Proportion of
Other receivables
bad debts provision(%)
1-6 months (including 6 months) 13,227,324.25
6-12 months 704,000.00 35,200.00 5.00
1-2 years (including 1 year) 1,755,896.74 175,589.67 10.00
2-3 years (including 2 years)
3-4 years (including 3 years) 269,173.85 134,586.93 50.00
4 - 5 years (including 4 years) 39,613.58 31,690.86 80.00
Over 5 years (including 5 years) 4,649,634.21 4,649,634.21 100.00
Total 20,645,642.63 5,026,701.67 24.35
5.6.2 Provision for bad debts provided in the current year
RMB20,470,420.51 is provided for bad debts in the current year.
5.6.3 Other receivables classified by payment properties
Book balance as at Book balance as at
Property of account receivable
December 31, 2014 January 1, 2014
Petty cash and borrowings with small
amount 12,446,056.31 16,089,487.31
Margins and others 1,998,166.63 3,248,169.93
Fully provided provision for bad
debts regarding long-term
receivables and payables 28,805,277.94 8,358,402.24
Export rebates receivable 1,551,785.48 4,962,201.36
Total 44,801,286.36 32,658,260.84
5.6.4 Information on the top five other receivables by the debit balance as at December 31, 2014
The top five other receivables by the credit balance as at December 31, 2014 total RMB5,851,401.02, accounting for13.06% of total amount of balance as at December 31, 2014 of other receivables, and the balance as at December 31, 2014 of provision for bad debts provided correspondingly totals RMB4,035,328.04.
5.7 Inventories
5.7.1 Classification of inventories
Balance as at December 31, 2014 Balance as at January 1, 2014
Provision for Provision for
Item
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 79,968,561.48 4,618,914.59 75,349,646.89 76,599,709.05 4,618,914.59 71,980,794.46
Goods in progress 17,923,385.49 17,923,385.49 18,669,774.27 18,669,774.27
Finished goods 189,926,511.61 5,587,539.95 184,338,971.66 208,715,453.58 174,210.57 208,541,243.01
Total 287,818,458.58 10,206,454.54 277,612,004.04 303,984,936.90 4,793,125.16 299,191,811.74
5.7.2 Inventory provision
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Increase in 2014 Decrease in 2014
Balance as at Balance as at
Item January 1, Reversal or December 31,
Provision Others Others
2014 2014
write-off
Raw materials 4,618,914.59 4,618,914.59
Finished goods 174,210.57 5,413,329.38 5,587,539.95
Total 4,793,125.16 5,413,329.38 10,206,454.54
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.8 Other current assets
Balance as at Balance as at
Item
December 31, 2014 January 1, 2014
Overpaid tax for offsetting the future tax payable 20,102,069.93 17,127,455.06
Total 20,102,069.93 17,127,455.06
5.9 Available-for-sale financial assets
5.9.1 Information on available-for-sale financial assets
Balance as at December 31, 2014 Balance as at January 1, 2014
Item
Provision for Provision for Book
Book balance Book value Book balance
impairment impairment value
Available-for-sale debt
instruments
Available-for-sale equity
instruments 4,340,915.04 4,340,915.04 4,340,915.04 4,340,915.04
Including: measured at fair
value
Measured at cost 4,340,915.04 4,340,915.04 4,340,915.04 4,340,915.04
Total 4,340,915.04 4,340,915.04 4,340,915.04 4,340,915.04
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
5.9.2 Available-for-sale financial assets measured at cost as at December 31, 2014
Book balance Provision for impairment
Proportion of Cash
As at
Investee
As at January Increase in Decrease in As at December As at January Increase in Decrease in
shareholding in dividends in
December
1, 2014 2014 2014 31, 2014 1, 2014 2014 2014
investee(%) 2014
31, 2014
Chongqing Jingjian Automotive
Air-conditioner Co., Ltd. 3,200,000.00 3,200,000.00 3,200,000.00 3,200,000.00 6.74
Ningbo Jianshe Motorcycle Manufacturing
Co., Ltd. 1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04 51.00
Total 4,340,915.04 4,340,915.04 4,340,915.04 4,340,915.04
5.10 Long-term equity investments
Increase/decrease in 2014(+/-)
Balance as at Balance as at
Profits and losses
Balance as at Provision for
Decrease Other Changes in Declaration of
December 31, Investee January 1,
Additional on investments
December 31, impairment
in comprehensive other cash dividends Others
2014 of provision 2014
investment recognized under
2014 in 2014
investment income equity or profits
for impairment the equity method
1．Joint ventures
Chongqing Jianshe Yamaha Motor.,
Ltd. 312,930,241.12 12,047,469.02 -15,000,000.00 309,977,710.14
Zhuzhou Jianshe Yamaha Motor.,
Ltd. 277,356,765.96 19,614,954.78 -19,000,000.00 277,971,720.74
Chongqing Pingshan TK
Carburettor Co., Ltd. 80,445,464.73 2,813,852.72 -1,470,000.00 81,789,317.45
Sub-total 670,732,471.81 34,476,276.52 -35,470,000.00 669,738,748.33
2．Associates
Chongqing Tongsheng Machinery
Co., Ltd. 2,079,588.23 -1,675,148.26 404,439.97
Chongqing Nanfang Motorcycle
Technology Research and
Development Co., Ltd. 16,429,730.15 -519,780.98 15,909,949.17
Chongqing Fuyeda Property 56,991.30 56,991.30
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
Investee Balance as at Increase/decrease in 2014(+/-) Balance as at Provision for Balance as at Management Co., Ltd.
January 1, December 31, impairment December 31, 2014 2014 in 2014 2014 of provision Sub-total 18,509,318.38 -2,137,937.94 16,371,380.44
for impairment Total 689,241,790.19 32,338,338.58 -35,470,000.00 686,110,128.77
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.11 Fixed assets
5.11.1 Information on fixed assets
Electronic and
Buildings and Machinery
Item Vehicles office Total
constructions equipment
equipment
1．Original book value
(1)Balance as at January 1,
2014 397,202,309.91 1,074,292,860.55 23,157,903.33 64,240,782.64 1,558,893,856.43
(2)Increase in 2014 1,796,854.30 11,952,199.23 225,777.78 1,053,211.33 15,028,042.64
- Acquisition 11,003,628.50 225,777.78 1,053,211.33 12,282,617.61
- Transfer-in from
construction in progress 1,796,854.30 948,570.73 2,745,425.03
(3)Decrease in 2014 8,948,466.67 3,351,334.00 463,697.78 12,763,498.45
- Disposal or write-off 8,948,466.67 3,351,334.00 463,697.78 12,763,498.45
(4)Balance as at December 31,
2014 398,999,164.21 1,077,296,593.11 20,032,347.11 64,830,296.19 1,561,158,400.62
2．Accumulated depreciation
(1)Balance as at January 1,
63,203,241.75 672,410,284.57 15,505,176.18 42,465,777.99 793,584,480.49
2014
(2)Increase in 2014 12,943,579.65 40,835,888.94 1,578,395.60 8,467,426.68 63,825,290.87
—Provision 12,943,579.65 40,835,888.94 1,578,395.60 8,467,426.68 63,825,290.87
(3)Decrease in 2014 8,486,924.84 3,316,138.77 379,000.13 12,182,063.74
- Disposal or write-off 8,486,924.84 3,316,138.77 379,000.13 12,182,063.74
(4)Balance as at December 31,
2014 76,146,821.40 704,759,248.67 13,767,433.01 50,554,204.54 845,227,707.62
3．Provision for impairment
(1)Balance as at January 1,
2014
(2)Increase in 2014
(3)Decrease in 2014
(4)Balance as at December 31,
2014
4．Book value
(1)Book value as at December
31, 2014 322,852,342.81 372,537,344.44 6,264,914.10 14,276,091.65 715,930,693.00
(2)Book value as at January 1,
2014 333,999,068.16 401,882,575.98 7,652,727.15 21,775,004.65 765,309,375.94
5.11.2 Information on the fixed assets without certificate of title
Reasons for absence of certificate
Item Book value
of title
Buildings and The formalities are handled with
constructions 317,484,743.26 the relevant authorities
5.12 Construction in progress
5.12.1 Information on the construction in progress
Item Balance as at December 31, 2014 Balance as at January 1, 2014
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Replacement of
equipment 12,525,502.99 12,525,502.99 5,411,212.59 5,411,212.59
Civil engineering 3,789,650.11 3,789,650.11 3,878,715.45 3,878,715.45
Total 16,315,153.10 16,315,153.10 9,289,928.04 9,289,928.04
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.12.2 Major changes in construction in progress for the current year
Balance as at Transferred into Other Balance as at
Increase in Source of
Item January 1, fixed assets for decreases in December 31,
2014 fund
2014 the current year 2014 2014
Capacity expansion of
air-conditioner 5,385,126.43 8,650,562.32 1,510,185.76 12,525,502.99 Self-financed
Anechoic chamber 2,804,444.00 418,206.11 3,222,650.11 Self-financed
Decorative renovation
engineering of office
building 1,074,271.45 562,259.02 1,069,530.47 567,000.00 Self-financed
Replacement of technical
transformation of a small
amount of equipment 26,086.16 139,622.64 165,708.80 Self-financed
Total 9,289,928.04 9,770,650.09 2,745,425.03 16,315,153.10
5.13 Intangible assets
5.13.1 Information on intangible assets
Non-patented
Item Land use right Total
technology
1. Original book value
(1)Balance as at January 1, 2014 69,813,182.12 77,121,702.42 146,934,884.54
(2)Increase in 2014 5,379,983.86 5,379,983.86
- Internal R& D 5,379,983.86 5,379,983.86
(3)Decrease in 2014
(4)Balance as at December 31, 2014 69,813,182.12 82,501,686.28 152,314,868.40
2．Accumulated amortization
(1)Balance as at January 1, 2014 12,971,965.27 30,699,255.04 43,671,220.31
(2)Increase in 2014 1,393,214.04 14,762,323.50 16,155,537.54
—Provision 1,393,214.04 14,762,323.50 16,155,537.54
(3)Decrease in 2014
(4)Balance as at December 31, 2014 14,365,179.31 45,461,578.54 59,826,757.85
3．Provision for impairment
(1)Balance as at January 1, 2014
(2)Increase in 2014
(3)Decrease in 2014
(4)Balance as at December 31, 2014
4．Book value
(1)Book value as at December 31, 2014 55,448,002.81 37,040,107.74 92,488,110.55
(2)Book value as at January 1, 2014 56,841,216.85 46,422,447.38 103,263,664.23
5.14 Development expenditures
Increase in 2014 Decrease in 2014
Balance as at
Balance as at
Internal Recognized Included in the
Item December 31,
January 1, 2014
development as intangible current profit and
2014
expenditures asset loss
Development of motorcycle and engine 27,603,929.21 36,498,298.65 5,379,983.86 22,032,982.93 36,689,261.07
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Expenditures at the research phase of
automobile air-condition 8,602,664.16 8,602,664.16
Total 27,603,929.21 45,100,962.81 5,379,983.86 30,635,647.09 36,689,261.07
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.15 Long-term deferred expenses
Balance as at Other Balance as at
Increase in Amortization
Item January 1, decreases in December 31,
2014 in 2014
2014 2014 2014
Grinding apparatus of
foundry 1,815,694.12 2,931,801.86 2,326,956.50 2,420,539.48
Initial payment for aluminum
machine of model No. 83 6,112,317.12 1,383,409.92 4,728,907.20
Initial payment for aluminum
machine of model No. 96 710,932.25 59,244.40 651,687.85
Total 7,928,011.24 3,642,734.11 3,769,610.82 7,801,134.53
5.16 Deferred income tax assets
5.16.1 Deferred income tax assets before offset
Balance as at December 31, 2014 Balance as at January 1, 2014
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
differences assets differences assets
Provision for assets impairment 18,601,562.30 3,756,129.12 17,635,856.48 3,564,354.64
Total 18,601,562.30 3,756,129.12 17,635,856.48 3,564,354.64
5.16.2 Details of unrecognized deferred income tax assets
Balance as at December 31, Balance as at January 1,
Item
2014 2014
Deductible temporary
differences 44,835,506.79 19,834,858.33
Deductible losses 728,856,742.29 645,790,437.42
Total 773,692,249.08 665,625,295.75
5.16.3 Deductible losses of unrecognized deferred income tax assets shall be due in the following years:
Balance as at December 31, Balance as at January 1,
Year
2014 2014
2014 89,406,285.37
2015 75,337,093.67 75,337,093.67
2016 238,350,758.67 238,350,758.67
2017 228,864,550.40 228,864,550.40
2018 41,946,481.17 13,831,749.31
2019 144,357,858.38
Total 728,856,742.29 645,790,437.42
5.17 Other non-current assets
Balance as at December Balance as at January
Item
31, 2014 1, 2014
Debit balance of equity investment
calculated under the original system of
Shanghai Jianshe Motorcycle Co., Ltd. 408,000.00
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Total 408,000.00
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.18 Short-term borrowings
5.18.1 Classification of short-term borrowings:
Balance as at December Balance as at January
Item
31, 2014 1, 2014
Pledged borrowings 151,305,047.85
Mortgaged borrowings 7,000,000.00 7,000,000.00
Guaranteed borrowings 202,500,000.00 218,500,000.00
Credit borrowings 594,000,000.00 520,000,000.00
Total 803,500,000.00 896,805,047.85
5.18.2 Mortgaged borrowings
Loaner Borrowing balance Collateral
Bank of The buildings and lands of Shanghai
Communications 7,000,000.00 Jianshe Motorcycle Co., Ltd.
Total 7,000,000.00
5.18.3 Guaranteed borrowings
Loaner Borrowing balance Guarantor
Bank of Chongqing Jiulong
Chongqing Jianshe Motorcycle Co., Ltd.
Plaza Sub-branch
28,000,000.00
Bank of China Jiulongpo
Chongqing Jianshe Sales Co., Ltd.
Sub-branch 50,000,000.00
Huaxia Bank Jiulongpo Chongqing Beifang Jianshe Import and
Sub-branch 49,000,000.00 Export Trade Co., Ltd.
Bank of Chongqing Jiulong
Chongqing Jianshe Motorcycle Co., Ltd.
Plaza Sub-branch 50,000,000.00
Bank of Chongqing Jiulong
Chongqing Jianshe Motorcycle Co., Ltd.
Plaza Sub-branch 25,500,000.00
Total
202,500,000.00
5.19 Notes payable
Balance as at December Balance as at January
Type
31, 2014 1, 2014
Bank acceptance bill 560,011,000.00 742,696,400.00
Commercial acceptance bill
Total 560,011,000.00 742,696,400.00
Remark: The bank acceptance bills issued by the Company in the current year are guaranteed by the bank acceptance bills margins with fixed quotas deposited by the Company with banks; at the same time, as for RMB12 million among the balance of notes payable, Chongqing Jianshe Motorcycle Co., Ltd. bears the joint and several liability; as for RMB71.44 million, Chongqing Jianshe Automobile A/C Co., Ltd. bears the joint and several liability; as for RMB70 million, Chongqing Beifang Jianshe Import and Export Trade Co., Ltd. bears the joint and several liability; as for RMB30 million, Chongqing Jianshe Sales Co., Ltd. bears the joint and several liability. 5.20 Accounts payable
5.20.1 Presentation of accounts payable by aging
Balance as at Balance as at
Aging
December 31, 2014 January 1, 2014
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Within 1 year 563,631,342.79 519,911,361.77
1-2 years 14,034,496.75 6,445,297.87
2-3 years 2,111,843.11 3,568,346.76
Over 3 years 8,443,699.07 6,628,947.36
Total 588,221,381.72 536,553,953.76
5.21 Advances from customers
5.21.1 Presentation of advances from customers by aging
Balance as at December 31, Balance as at January 1,
Aging
2014 2014
Within 1 year 11,368,226.96 26,694,970.36
1-2 years 7,839,586.41 312,909.21
2-3 years 253,066.67 66,277.98
Over 3 years 422,755.91 2,103,103.24
Total 19,883,635.95 29,177,260.79
5.22 Employee compensation payable
5.22.1 Presentation of employee compensation payable
Balance as at Balance as at
Increase in Decrease in
Item January 1, December 31,
2014 2014
2014 2014
Short-term compensation 2,299,688.98 153,978,990.10 153,304,922.07 2,973,757.01
Post-employment benefits -
defined contribution plans 319,354.17 22,588,369.95 22,812,745.33 94,978.79
Dismissal welfare 9,117,528.77 9,117,528.77
Total 2,619,043.15 185,684,888.82 185,235,196.17 3,068,735.80
5.22.2 Presentation of short-term compensation
Balance as at Balance as at
Increase in Decrease in
Item January 1, December 31,
2014 2014
2014 2014
(1)Salary, bonus, allowance
and subsidy 1,233,049.19 108,710,491.83 108,710,583.14 1,232,957.88
(2)Employee benefits 16,673,395.75 16,673,395.75
(3) Social insurance expenses 12,604,849.20 12,604,849.20
Including: medical insurance
premium 10,983,680.27 10,983,680.27
Work-related injury insurance
premium 953,559.57 953,559.57
Maternity insurance premium 667,609.36 667,609.36
(4) Housing fund 345,382.00 12,132,793.00 11,867,809.00 610,366.00
(5) Labor union expenditures
and employee education
expenses 721,257.79 3,857,460.32 3,448,284.98 1,130,433.13
(6) Short-term paid absences
(7) short-term profit-sharing
plan
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Total 2,299,688.98 153,978,990.10 153,304,922.07 2,973,757.01
5.22.3 Presentation of defined contribution plans
Balance as at Balance as at
Increase in Decrease in
Item January 1, December 31,
2014 2014
2014 2014
Basic endowment insurance
premium 319,354.17 20,681,160.67 20,905,536.05 94,978.79
Unemployment insurance
premium 1,907,209.28 1,907,209.28
Total 319,354.17 22,588,369.95 22,812,745.33 94,978.79
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.23 Taxes and surcharges payable
Balance as at Balance as at
Tax and surcharge items
December 31, 2014 January 1, 2014
Value-added tax (VAT) 620,026.67 1,643,397.35
Consumption tax 135,774,979.14 137,754,386.21
Business tax 69,450.72 722,885.66
Individual income tax 17,104.06 16,547.08
Urban maintenance and construction tax 12,961.77 484,991.06
Educational surtax 1,183.38 355,626.09
Other taxes and surcharges 8,962.39 523,862.97
Total 136,504,668.13 141,501,696.42
5.24 Other payables
5.24.1 Presentation of other payables by aging
Balance as at Balance as at
Aging
December 31, 2014 January 1, 2014
Within one year 11,701,119.07 20,256,426.97
1-2 years 2,889,698.32 6,913,982.93
2-3 years 5,859,335.86 3,411,538.44
Over 3 years 4,437,271.06 1,957,731.42
Total 24,887,424.31 32,539,679.76
5.24.2 Major other payables with aging of more than one year
Balance as at Reasons for
Item December 31, unsettlement or
2014 carrying forward
The business has not
Margins deposited 3,469,656.50 been discontinued.
Ningbo Shenjiang Technology Joint Stock
Limited Company 1,000,000.00 Borrowing
5.25 Non-current liabilities maturing within one year
Balance as at Balance as at
Item
December 31, 2014 January 1, 2014
Long-term borrowings maturing within one year 111,000,000.00 98,000,000.00
Bonds payable maturing within one year
Long-term payables maturing within one year
Total 111,000,000.00 98,000,000.00
5.26 Long-term borrowings
5.26.1 Classification of long-term borrowings
Balance as at Balance as at
Item
December 31, 2014 January 1, 2014
Pledged borrowings
Mortgaged borrowings
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Guaranteed borrowings 114,000,000.00 47,000,000.00
Credit borrowings 7,000,000.00 82,000,000.00
Total 121,000,000.00 129,000,000.00
5.26.2 Guaranteed borrowings
Loaner Borrowing balance Guarantor
China Construction Bank
Chongqing Jianshe
Yangjiaping Sub-branch
114,000,000.00 Automobile A/C Co., Ltd.
Total
114,000,000.00
5.27 Special payables
Balance as at Balance as at
Increase in Decrease in Cause of
Item January 1, December 31,
2014 2014 formation
2014 2014
Basic scientific research 738,000.00 738,000.00
Total 738,000.00 738,000.00
5.28 Estimated liabilities
Balance as at Balance as at
Item Cause of formation
December 31, 2014 January 1, 2014
See the Note 10
Commitments and
Contingencies for
Pending litigation 3,226,654.00 details
Total 3,226,654.00
5.29 Share capital
Increase("+") /decrease ("-") for the current year
Balance as at Balance as at
Share converted
Item January 1,
Issuance of Share
December 31,
from public reserve Others Sub-total
2014
new shares donation
2014
funds
Total shares 119,375,000.00 119,375,000.00
5.30 Capital reserve
Balance as at Balance as at
Increase Decrease
Item January 1, December 31,
in 2014 in 2014
2014 2014
Capital (or equity) premium 344,407,741.07 344,407,741.07
Other capital reserves 616,097,776.52 616,097,776.52
Total 960,505,517.59 960,505,517.59
5.31 Other comprehensive income
Item Balance as Year 2014 Balance as at
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 at January Less: December
1, 2014 recognized as 31, 2014
other
Accrual
comprehensive Attributable
before Less: Attributable
income for to owners of
income tax income tax to minority
previous years the parent
for the expenses shareholders
and transferred company
current year
in the profit or
loss for the
current year
1. Other comprehensive
income that cannot be
reclassified in the loss and
gain in the future 9,800.00 9,800.00
Including: change in
re-measurement of the net
liabilities and net assets
under defined benefit plan
A share in other
comprehensive income of
investee that cannot be
reclassified in the loss and
gain under the equity
method 9,800.00 9,800.00
Total other comprehensive
income 9,800.00 9,800.00
5.32 Surplus reserves
Balance as at Increase in Decrease in Balance as at
Item
January 1, 2014 2014 2014 December 31, 2014
Statutory surplus reserves 56,724,000.00 56,724,000.00
Discretionary surplus reserves 68,962,000.00 68,962,000.00
Total 125,686,000.00 125,686,000.00
5.33 Retained earnings
Item Year 2014 Year 2013
Adjustments to retained earnings as at December 31, 2013 -1,054,661,171.00 -1,063,624,266.50
Adjustments to total retained earnings as at January 1, 2014
("+" for increases; "-" for decreases)
Adjusted retained earnings as at January 1, 2014 -1,054,661,171.00 -1,063,624,266.50
Plus: net profit attributable to owners of parent company in
2013 -133,593,949.98 11,589,364.53
Less: withdrawal of statutory surplus reserves
Withdrawal of discretionary surplus reserve
Adjustments to long-term equity investments due to the
change from under the cost method to under the equity
method 2,626,269.03
Retained earnings as at December 31, 2014 -1,188,255,120.98 -1,054,661,171.00
5.34 Operating income and operating costs
Item Year 2014 Year 2013
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Income Cost Income Cost
Primary businesses 1,695,959,258.99 1,501,878,617.61 1,807,055,852.80 1,565,769,102.55
Other businesses 67,660,545.98 48,264,254.95 78,775,692.05 56,012,013.40
Total 1,763,619,804.97 1,550,142,872.56 1,885,831,544.85 1,621,781,115.95
Primary businesses (by product)
Year 2014 Year 2013
Name of product
Operating income Operating cost Operating income Operating cost
Motorcycle and parts 968,500,508.27 902,888,238.86 1,164,684,763.99 1,062,530,685.00
Automobile air-conditioner 727,458,750.72 598,990,378.75 642,371,088.81 503,238,417.55
Total 1,695,959,258.99 1,501,878,617.61 1,807,055,852.80 1,565,769,102.55
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.35 Business taxes and surcharges
Item Year 2014 Year 2013
Consumption tax 15,131,984.08 16,275,912.82
Business tax 306,641.40 840,582.67
Urban maintenance and construction tax 3,080,701.33 2,381,186.15
Educational surtax 2,319,977.77 1,734,719.76
Total 20,839,304.58 21,232,401.40
5.36 Selling expenses
Item Year 2014 Year 2013
Employee compensation payable 23,261,841.57 26,391,712.08
Depreciation costs 1,828,057.08 1,957,728.98
Office costs 2,408,412.10 3,567,422.91
Loading and unloading expenses 411,329.71 557,547.93
Transportation cost 17,613,734.43 20,992,960.47
Insurance premium 460,850.62 1,058,937.69
Operating funds 293,575.81 419,323.91
Exhibition fees 846,532.38 542,355.32
Advertising expenses 576,123.21 609,880.64
Travel expenses 5,352,908.59 7,009,450.79
Sale service fees 15,563,788.56 21,084,820.40
Repair charges 14,948,766.80 8,126,023.52
Warehousing custodian fees 8,136,312.79 8,763,410.96
Market expansion expenses 2,716,131.09 3,565,281.26
Other expenditures 1,877,855.60 1,822,275.50
Total 96,296,220.34 106,469,132.36
5.37 General and administrative expenses
Item Year 2014 Year 2013
Employee compensation payable 66,486,735.11 67,847,180.42
Depreciation costs 8,060,609.84 7,655,424.86
Office costs 1,565,514.31 2,489,055.58
Utility bills 826,968.27 832,570.97
Travel expenses 1,593,930.47 1,627,617.98
Transportation cost 1,367,078.94 1,446,006.28
Insurance premium 627,016.57 959,467.30
Repair charges 12,271,930.34 13,299,305.83
Consumption of goods and materials 1,098,703.00 1,261,496.82
Technological development expenses 30,635,647.09 26,435,340.36
Technological transfer fees 2,380,460.55 2,292,902.52
Taxes 5,346,001.55 4,581,346.73
Amortization of intangible assets 16,155,537.54 13,635,341.28
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Entertainment expenses 3,037,860.49 3,641,082.73
Conference fees 294,554.40 134,967.20
Intermediary service expenses 1,514,888.95 2,177,256.67
Board meeting fees 656,316.97 574,652.63
Others 10,746,819.60 6,865,135.21
Total 164,666,573.99 157,756,151.37
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.38 Financial expenses
Category Year 2014 Year 2013
Interest expenses 99,168,214.12 115,881,637.55
Less: Interest income 9,877,597.55 11,710,101.91
Gains or losses on exchange -420,513.14 3,666,346.97
Others 2,588,097.55 1,693,165.06
Total 91,458,200.98 109,531,047.67
5.39 Losses from asset impairment
Item Year 2014 Year 2013
Losses on bad debt 20,553,024.90 4,397,083.09
Losses on inventory depreciation 5,413,329.38 4,793,125.16
Total 25,966,354.28 9,190,208.25
5.40 Investment income
Item Year 2014 Year 2013
Long-term equity investment income calculated by
equity method 32,338,338.58 38,767,736.11
Others -408,000.00 -408,000.00
Total 31,930,338.58 38,359,736.11
5.41 Non-operating income
Amounts included in
the non-recurrent
Item Year 2014 Year 2013
profit and loss for the
current year
Total gains on disposal of
non-current assets 12,172.94 59,925,313.56 12,172.94
Including: gains from disposal
of fixed assets 12,172.94 900,161.09 12,172.94
gains on disposal of intangible
assets 59,025,152.47
Gain on debt restructuring
Gains on exchange of
non-monetary assets
Donation received
Government subsidies 2,875,800.00 49,942,210.00 2,875,800.00
Others 21,147,639.11 2,094,057.16 21,147,639.11
Total 24,035,612.05 111,961,580.72 24,035,612.05
Government subsidies included in current profit and loss
Asset-related/
Subsidy item Year 2014 Year 2013
income-related
Funds for supporting the technical
innovation, research and development
of export enterprises 200,000.00 546,281.00 Income-related
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Asset-related/
Subsidy item Year 2014 Year 2013
income-related
Special funds for stable yields,
promotion and increasing of efficiency 720,000.00 Income-related
Other various subsidies with small
amount 105,600.00 152,000.00 Income-related
Total subsidies with small amount
from the Ministry of Finance 2,252,010.00 Income-related
Special supporting funds from the
Banan Finance Bureau of Chongqing
Municipality 21,200,000.00 Income-related
Special supporting funds from the
Jiulongpo Finance Bureau of
Chongqing Municipality 25,791,919.00 Income-related
The funds for international market
development 230,000.00 Income-related
Credit insurance premium subsidies 696,000.00 Income-related
Special funds of foreign trade and
economic development 308,700.00 Income-related
Industrial supporting funds 365,500.00 Income-related
Rewards for the high and new
technology products 100,000.00 Income-related
Postdoctoral fellowship 150,000.00 Income-related
Total 2,875,800.00 49,942,210.00 /
Remark: The term "others" among the non-operating income items for the current year mainly refer to Chongqing Jianshe Sales Co., Ltd. (a wholly subsidiary of the Company)'s long-term suspend accounts with small amount and disposed and written off in the current year and accounts receivable as for which there are no current transactions and that cannot be paid, which amount to RMB 19,950,242.41.
5.42 Non-operating expenses
Amounts included in
the non-recurrent
Item Year 2014 Year 2013
profit and loss for the
current year
Total losses on disposal of
non-current assets 340,391.02 317,745.26 340,391.02
Including: loss on disposal of fixed
assets 340,391.02 317,745.26 340,391.02
Loss on disposal of intangible
assets
Loss on debt restructuring
Loss on exchange of non-monetary
assets
Donation made 463,975.80
Others 3,390,961.73 179,086.09 3,390,961.73
Total 3,731,352.75 960,807.15 3,731,352.75
5.43 Income tax expenses
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Item Year 2014 Year 2013
Income tax expenses for the current year 218,486.34 75,293.70
Deferred income tax expenses -191,774.48 -440,500.29
Total 26,711.86 -365,206.59
5.44 Items of the statement of cash flows
5.44.1 Cash received from other operating activities
Item Year 2014 Year 2013
Government subsidies received 2,875,800.00 49,942,210.00
Spare cash, income from interests on bank
deposits , scrap revenues and margins, etc. 9,998,163.38 7,852,732.79
Total 12,873,963.38 57,794,942.79
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 5.44.2 Cash paid for other operating activities
Item Year 2014 Year 2013
Office fees, travel expenses and others 10,920,765.47 14,693,547.26
Warehousing, market expansion and other
payments in cash and selling expenses 14,894,475.66 16,665,857.31
Expenses for administration of payments in
cash, petty cash, etc. 39,258,140.67 35,271,806.72
Total 65,073,381.80 66,631,211.29
5.44.3 Cash received from other financing activities
Item Year 2014 Year 2013
Proceeds from discounting of financing notes
received 1,599,782,125.41 1,644,975,572.92
Interest income from note margins 7,491,556.75 10,336,081.93
Decreases in the note margins 60,729,790.30 157,091,925.47
Total 1,668,003,472.46 1,812,403,580.32
5.44.4 Cash paid for other financing activities
Item Year 2014 Year 2013
Payments for matured financing notes 1,738,217,906.13 1,768,259,792.70
Total 1,738,217,906.13 1,768,259,792.70
5.45 Supplementary information to the statement of cash flows
5.45.1 Supplementary information to the statement of cash flows
Supplementary information Year 2014 Year 2013
1. Net profit adjusted to cash flows from
operating activities
Net profits -133,541,835.74 9,597,204.12
Plus: provision for assets impairment 25,966,354.28 9,190,208.25
Depreciation of fixed assets and others 63,825,290.87 66,227,243.80
Amortization of intangible assets 16,155,537.54 13,635,341.28
Amortization of long-term deferred expenses 3,769,610.82 4,122,619.29
Losses on disposal of fixed assets, intangible
assets and other long-term assets ("-" for gains) 328,218.08 -59,607,568.30
Losses on write-off of fixed assets ("-" for
gains)
Losses from changes in fair value ("-" for
gains)
Financial expenses ("-" for income) 91,676,657.37 105,545,555.62
Investments losses ("-" for gains) -31,930,338.58 -38,359,736.11
Decreases in the deferred income tax assets
("-" for increases) -191,774.48 -440,500.29
Increases in the deferred income tax liabilities
("-" for decreases)
Decreases in inventories ("-" for increases) 16,166,478.32 -13,005,211.06
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Supplementary information Year 2014 Year 2013
Decreases in operating payables ("-" for
increases) 89,796,203.48 -5,030,191.15
Increases in operating payables ("-" for
decreases) -47,421,750.05 70,973,696.59
Others
Net cash flows from operating activities 94,598,651.91 162,848,662.04
2. Significant investment and financing
activities involving no cash receipts and
payments
Conversion of debt into capital
Convertible corporate bonds maturing within
one year
Fixed assets acquired under financial lease
3. Net change in cash and cash equivalents:
Balance as at December 31, 2014 of cash 35,555,585.06 170,222,347.76
Less: balance as at January 1, 2014 of cash 170,222,347.76 81,609,913.40
Plus: balance as at December 31, 2014 of cash
equivalents
Less: balance as at January 1, 2014 of cash
equivalents
Net increase in cash and cash equivalents -134,666,762.70 88,612,434.36
5.45.2 Breakdowns of cash and cash equivalents:
Balance as at Balance as at
Item
December 31, 2014 January 1, 2014
1. Cash 35,555,585.06 170,222,347.76
Including: cash on hand 116,629.79 55,321.10
Unrestricted bank deposit 35,438,955.27 170,167,026.66
Other unrestricted monetary funds
Unrestricted deposits with central bank
Deposits with banks and other financial
institutions
Loans to or from banks and other
financial institutions
2. Cash equivalents
Including: bond investments maturing
within three months
3. Balance of cash and cash equivalents as
at December 31, 2014 35,555,585.06 170,222,347.76
Including: cash and cash equivalents
restricted for use by the parent company
or subsidiaries within the group
5.46 Assets with restrictions on their ownership or use right
Book value as at
Item Reason for restriction
December 31, 2014
Cash and cash equivalents 157,362,464.22 Provide a guarantee for issuance of
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Book value as at
Item Reason for restriction
December 31, 2014
bank acceptance bills
Provide a guarantee for short-term
Fixed assets 5,367,599.55 borrowings
Provide a guarantee for short-term
Intangible assets 2,888,053.44 borrowings
Total 165,618,117.21
5.47 Monetary items in foreign currency
5.47.1 Monetary items in foreign currency
Balance of foreign currency Exchange Balance of conversion into
Item
as at December 31, 2014 rate RMB as at December 31, 2014
Cash and cash equivalents 1,484,351.75
Including: USD 236,804.79 6.1190 1,449,008.49
EUR 4,740.50 7.4556 35,343.26
Accounts receivable 28,844,086.15
Including: USD 4,713,856.21 6.1190 28,844,086.15
Advances from customers 5,836,245.70
Including: USD 953,037.01 6.1190 5,831,634.11
EUR 618.54 7.4556 4,611.59
6. Change in the scope of business combinations
There are no changes in the scope of business combinations.
7. Equity in other entities
7.1 Equity in subsidiaries
7.1.1 Constitution of enterprise group
Domicile of Registered
Shareholding ratio(%)
Acquisition
Name of subsidiary Business nature
primary operation place
Directly Indirectly
method
Chongqing Jianshe Sale Domestic sales of Establishmen
Co., Ltd.("The Sale motorcycles and the t by
Company") Chongqing Chongqing relevant accessories 100.00 investment
The export of Business
Chongqing Beifang motorcycles and their combination
Import and Export Trade accessories and other under
Co., Ltd.("The Import and import and export agent common
Export Company") Chongqing Chongqing services 95.14 4.86 control
Chongqing Jianshe
Automobile A/C Co., Ltd. Production and sale of Establishmen
("The Air-conditioner automotive t by
Company") Chongqing Chongqing air-conditioners 43.75 56.25 investment
Business
combination
Shanghai Jianshe Domestic sales of not under
Motorcycle Co., motorcycles and the common
Ltd.("Shanghai Jianshe") Shanghai Shanghai relevant accessories 51.00 control
Chongqing Jianshe Domestic sales of Establishmen
Motorcycle Sales Co., motorcycles and the t by
Ltd.("The Sales Chongqing Chongqing relevant accessories 45.00 55.00 investment
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Name of subsidiary Domicile of Registered Business nature Shareholding ratio(%) Acquisition
Company")
primary operation place method
7.1.2 Significant non-wholly-owned subsidiaries
Dividends
Profits or losses
declared to be Balance of
Shareholding attributable to
distributed to minority equity
Name of subsidiary ratio of minority minority
minority as at December
shareholder(%) shareholders for
shareholders for 31, 2014
the current year
the current year
Shanghai Jianshe
Motorcycle Co., Ltd. 49.00% 52,114.24 586,313.91
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
7.1.3 Major financial information on significant non-wholly-owned subsidiaries
Balance as at December 31, 2014 Balance as at January 1, 2014
Name of subsidiary
Non-current Current Non-current Non-current Current Non-current
Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
Shanghai Jianshe
Motorcycle Co., Ltd. 11,203,466.47 8,578,050.11 19,781,516.58 18,584,957.57 18,584,957.57 9,691,307.81 9,069,990.92 18,761,298.73 17,671,095.31 17,671,095.31
Year 2014 Year 2013
Total
Name of subsidiary
Net cash flow from Total comprehensive Net cash flow from
Operating income Net profit comprehensive Operating income Net profit
operating activities income operating activities
income
Shanghai Jianshe Motorcycle Co., Ltd. 16,403,587.24 106,355.59 1,242,940.04 24,515,633.88 -4,065,633.49 970,141.34
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 7.2 Transactions through which the Company's shares of owner's equity in subsidiaries are changed but it still has control over the subsidiaries.
The shares held by the Company in its subsidiaries' owners' equity have not been changed in the current year.
7.3 Equity in joint ventures and associates
7.3.1 Major joint ventures and associates
Shareholding ratio Accounting
(%) treatment
Domicile of
Name of joint Registered methods for the
primary Business nature
venture or associate place investments in
operation
Directly Indirectly
joint ventures
or associates
Production and
sales of
Chongqing Jianshe motorcycles and
Yamaha Motor., the relevant
Ltd. Chongqing Chongqing accessories 50.00 Equity method
Production and
sales of
Zhuzhou Jianshe motorcycles and
Yamaha Motor., the relevant
Ltd. Zhuzhou Zhuzhou accessories 50.00 Equity method
Production and
Chongqing sales of
Pingshan TK motorcycles and
Carburettor Co., the relevant
Ltd. Chongqing Chongqing accessories 49.00 Equity method
Production and
sales of
Chongqing motorcycles and
Tongsheng the relevant
Machinery Co., Ltd. Chongqing Chongqing accessories 30.00 Equity method
Chongqing Nanfang Research and
Motorcycle development of
Technology technologies
Research and relating to
Development Co., motorcycle and
Ltd. Chongqing Chongqing its accessories 23.5294 Equity method
Chongqing Fuyeda
Property
Management Co., Property
Ltd. Chongqing Chongqing management 20.00 Equity method
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
7.3.2 Major financial information on significant joint ventures
Balance as at December 31, 2014/ Year 2014 Balance as at January 1, 2014/ Year 2013
Zhuzhou Jianshe Chongqing Zhuzhou Jianshe Chongqing
Chongqing Jianshe Chongqing Jianshe
Item
Yamaha Pingshan TK Yamaha Pingshan TK
Yamaha Motor., Yamaha Motor.,
Motorcycle Co., Carburettor Co., Motorcycle Co., Carburettor Co.,
Ltd. Ltd.
Ltd. Ltd. Ltd. Ltd.
Current assets 632,108,475.39 659,937,994.80 157,922,266.98 665,265,267.53 530,797,133.00 152,202,926.84
Including: cash and cash equivalents 221,922,023.97 178,527,703.37 100,205,280.67 269,910,896.39 172,765,094.45 89,290,527.08
Non-current assets 317,876,109.24 145,845,485.68 30,105,156.34 338,384,588.94 198,889,758.91 33,659,790.64
Total assets 949,984,584.63 805,783,480.48 188,027,423.32 1,003,649,856.47 729,686,891.91 185,862,717.48
Current liabilities 317,158,777.19 241,678,007.65 21,110,448.97 364,918,987.06 166,811,328.63 21,688,299.71
Non-current liabilities
Total liabilities 317,158,777.19 241,678,007.65 21,110,448.97 364,918,987.06 166,811,328.63 21,688,299.71
Minority equity
Equity attributable to the shareholders of parent company 632,825,807.44 564,105,472.83 166,916,974.35 638,730,869.41 562,875,563.28 164,174,417.77
Shares in net assets calculated according to the shareholding
ratios 316,412,903.73 282,052,736.42 81,789,317.45 319,365,434.71 281,437,781.64 80,445,464.73
Adjustment events 6,435,193.59 4,081,015.68 6,435,193.59 4,081,015.68
- Goodwill
- Unrealized profits of internal transactions
- Others 6,435,193.59 4,081,015.68 6,435,193.59 4,081,015.68
The book values of equity investments in joint ventures 309,977,710.14 277,971,720.74 81,789,317.45 312,930,241.12 277,356,765.96 80,445,464.73
The fair values of equity investments in joint ventures with a
public offer
Operating income 1,821,512,908.06 948,997,903.96 128,704,656.34 2,105,212,983.42 893,087,039.59 128,800,598.14
Financial expenses -434,171.25 -3,665,352.15 -2,491,139.44 12,926.35 -4,414,030.14 -202,202.43
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
Income tax expenses 5,438,798.83 7,095,996.80 1,121,706.75 4,396,966.84 6,820,262.57 482,941.21
Net profit 24,094,938.03 40,508,852.24 5,882,284.09 33,084,963.12 43,457,608.59 4,869,757.52
Net profits from discontinued operations
Other comprehensive income 20,000.00
Total comprehensive income 24,094,938.03 40,508,852.24 5,882,284.09 33,084,963.12 43,457,608.59 4,889,757.52
Dividends received from joint ventures for the current year 15,000,000.00 19,000,000.00 1,470,000.00 15,000,000.00 14,000,000.00 1,470,000.00
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
7.3.3 Major financial information on significant associates
Balance as at December 31, 2014/ Year 2014 Balance as at January 1, 2014/ Year 2013
Chongqing Chongqing Nanfang Chongqing Chongqing Chongqing Nanfang Chongqing
Item
Tongsheng Motorcycle Technology Fuyeda Property Tongsheng Motorcycle Technology Fuyeda Property
Machinery Co., Research and Management Co., Machinery Co., Research and Management
Ltd. Development Co., Ltd. Ltd. Ltd. Development Co., Ltd. Co., Ltd.
Current assets 106,020,876.82 59,852,254.15 4,833,931.48 78,686,104.69 60,387,012.19 3,926,195.85
Non-current assets 6,008,707.69 7,896,826.11 93,413.34 6,066,693.07 10,227,657.64 295,032.73
Total assets 112,029,584.51 67,749,080.26 4,927,344.82 84,752,797.76 70,614,669.83 4,221,228.58
Current liabilities 110,681,451.27 131,762.45 4,642,388.31 77,820,837.00 788,281.76 4,879,774.46
Non-current liabilities - -
Total liabilities 110,681,451.27 131,762.45 4,642,388.31 77,820,837.00 788,281.76 4,879,774.46
Minority equity
Equity attributable to the shareholders of parent
company 1,348,133.24 67,617,317.81 284,956.51 6,931,960.76 69,826,388.07 -658,545.88
Shares in net assets calculated according to the
shareholding ratios 404,439.97 15,909,949.17 56,991.30 2,079,588.23 16,429,730.15 -131,709.18
Adjustment events
- Goodwill
- Unrealized profits of internal transactions
- Others
The book values of equity investments in associates 404,439.97 15,909,949.17 56,991.30 2,079,588.23 16,429,730.15
The fair values of equity investments in associates
with a public offer
||
|-|
|Operating income|

Net profit -5,583,827.52 -2,209,070.26 943,502.39 -2,931,887.46 -4,012,005.48 -329,514.14
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
Net profits from discontinued operations
Other comprehensive income
Total comprehensive income -5,583,827.52 -2,209,070.26 943,502.39 -2,931,887.46 -4,012,005.48 -329,514.14
Dividends received from associates for the current
year
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 7.3.4 There are no significant restrictions on the joint ventures or associates' ability to transfer funds to the Company.
8. Risks relating to the financial instruments
The Company encounters a number of financial risks during the progress of operation: credit risk, market risk and liquidity risk. The board of directors of the Company will take full charge of the determination of risk management targets and policies, and bear the final liability for the risk management targets and policies. However, the board of directors has already authorized the operational and planning department of the Company to design and implement a series of steps to ensure the risk management targets and policies can be implemented effectively. The board of directors checks the effectiveness of executed procedures and reasonability of risk management targets and policies with the monthly reports submitted by the operational and planning department. The internal audit department of the Company also audits the risk management policies and procedures, and reports the audit results to the board of supervisors and the audit commission.
The general goal of risk management by the Company is to formulate the risk management policies minimizing potential risk under the premise of protecting the Company from excessive competitiveness and flexibility reduction.
8.1 Credit risk
The credit risk refers to the risk of incurring of losses in finance by one party of the financial instrument due to the other party's failure to perform its obligations. The Company substantially faces the customer credit risk as a result of selling on credit.
Most of the cash and cash equivalents, bank acceptance margins and others held by the Company are deposited with commercial banks and other financial institutions with good reputation, stable financial position and lower credit risk.
Most of accounts receivable are exposed to the customer credit risk arising from selling on credit. Before entering into a new contract, the Company will carry out an assessment of new customers' credit risk, including the external credit rating and bank reference letter in some cases (if the information are accessible). The Company set a credit limit for all customers, and this limit is the maximum limit without extra approval. The Company makes sure that the overall credit risk of the Company is within the controllable scope through the quarterly supervision of credit ratings of existing customers and monthly review of analysis on aging of accounts receivable. While supervising the customers' credit risk, the Company divides the customers into groups according to the credit characteristics of customers. The customers with "higher risk" will be included in the list of restricted customers, and the Company cannot grant a selling on credit for them in the future and must require them to pay the relevant proceeds in advance only unless there is an exceptional approval.
Most of the Company's other receivables refer to margins, deposits, and current receivables and payables between the Company and individuals and entities; the Company conducts an integrated management and continuous supervision of such accounts and the relevant economic businesses, and makes sure that its overall credit risk is within the controllable scope through the monthly review of aging analysis.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 8.2 Market risk
The market risk of a financial instrument refers to the risk that the fair value for future cash flow of a financial instrument is changed as the market price fluctuates, which includes exchange rate risk, interest rate risk and other price risks.
8.2.1 Interest rate risk
The interest rate risk refers to the risk that the fair value or future cash flow of a financial instrument is changed due to a fluctuation in the market interest rate. The key interest rate risk encountered by the Company arises from the bank borrowings. The Company's current relevant policy is that the borrowings with fixed interest rate account for100% of external borrowings. Although this policy cannot eliminate all cash flow risks relating to the fluctuation in the payment of interests, the management believes that it realizes the proper balance among those risks.
8.2.2 Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flow of a financial instrument is changed due to a fluctuation in the foreign exchange rate. The Company shall balance the income in foreign currency and expenditures in foreign currency as possible as it can, so as to lower the exchange rate risk.
The key exchange rate risk that the Company faces arises from the financial assets and financial liabilities in foreign currency, the amounts of financial assets in foreign currency and financial liabilities in foreign currency, after being converted to RMB, are listed as follows:
Balance as at December 31, 2014 Balance as at January 1, 2014
Item
USD EUR Total USD EUR Total
Cash and cash equivalents 1,449,008.49 35,343.26 1,484,351.75 1,577,660.12 23,616.95 1,601,277.07
Accounts receivable 28,844,086.15 28,844,086.15 30,986,488.99 30,986,488.99
Advances from customers 5,831,634.11 4,611.59 5,836,245.70 8,010,480.07 5,207.43 8,015,687.50
Total 36,124,728.75 39,954.85 36,164,683.60 40,574,629.18 28,824.38 40,603,453.56
On December 31, 2014, in the case that all other variables remain the same, if the rate of RMB to USD is increased or decreased by5%, the net profit of the Company will be decreased or increased by RMB 1,224,608.96. The management believes that5% properly reflects the reasonable scope of fluctuation in the rate of RMB to USD for the next year. 8.3 Liquidity risk
The liquidity risk refers to the risk of capital shortage in the case that an enterprise performs its obligation to settle in cash or with other financial assets. The Company's policy is to ensure sufficient cash for repayment of due debts. The liquidity risk is under the centralized control of the finance department of the Company. The department of finance, on the strength of supervision of balance of cash, negotiable securities that can be converted into cash at anytime and rolling forecast of cash flows in the future 12 months, makes sure that the Company has sufficient cash to repay debts under all circumstances that can be predicted in a reasonable manner.
The financial liabilities of the Company are presented by undiscounted contracted cash flow on the maturity date as follows:
Balance as at December 31, 2014
Item
Within 1 month 1 to 3 months 3 months - 1 year 1-5 years Total
Short-term borrowings 277,000,000.00 526,500,000.00 803,500,000.00
Notes payable 75,000,000.00 127,347,000.00 357,664,000.00 560,011,000.00
Accounts payable 191,958,198.88 174,299,475.22 221,963,707.62 588,221,381.72
Non-current liabilities maturing within one year 500,000.00 37,000,000.00 73,500,000.00 111,000,000.00
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Long-term borrowings 121,000,000.00 121,000,000.00
Total 267,458,198.88 615,646,475.22 1,179,627,707.62 121,000,000.00 2,183,732,381.72
9. Related parties and related party transactions
9.1 The parent company of the Company
Shareholding Voting ratio
Name of the parent Registered Registered
Business nature ratio in the in the
company place capital
Company(%) Company(%)
China South Industries Investment, design RMB17.469
Group Corporation Beijing and manufacture, etc. 68 billion 71.13 71.13
The ultimate controller of the Company is The State-owned Assets Supervision and Administration Commission of the State Council.
9.2 Subsidiaries of the Company
See the Note 7 Equity in Other Entities for the details of subsidiaries of the Company
9.3 The joint ventures and associates of the Company
See the Note 7 Equity in Other Entities for the details of major joint ventures or associates of the Company.
The related party transactions with the Company for the current year:
Name of joint venture or associate Relationship with the company
Chongqing Jianshe Yamaha Motor.,
Joint venture
Ltd.("Chongqing Jianshe Yamaha ")
Zhuzhou Jianshe Yamaha Motor., Ltd.("Zhuzhou
Joint venture
Jianshe Yamaha")
Chongqing Pingshan TK Carburettor Co.,
Joint venture
Ltd.("Pingshan TK")
Chongqing Tongsheng Machinery Co.,
Joint venture
Ltd.("Tongsheng Jianshe")
Chongqing Fuyeda Property Management Co.,
Joint venture
Ltd.("Fuyeda")
9.4 Other related parties of the Company
Name of other related parties Relationship with the Company
Chongqing Jianshe Industrial (Group) Co.,
Ltd. ("Jianshe industry ") Under the common control of the same party
China South Industries Group Finance Co.,
Ltd. ("South Finance Company ") Under the common control of the same party
Chongqing Jianxing Machinery Manufacturing An associate of a subsidiary of a controlling
Co., Ltd. ("Jianxing Machinery ") shareholder
Chongqing Changan Motor Joint Stock
Limited Company ("Changan Motor ") Under the common control of the same party
Chongqing Changan Suzuki Motor Co., Ltd.
("Changan Suzuki ") Under the common control of the same party
Hebei Changan Motor Co., Ltd. ("Hebei
Changan ") Under the common control of the same party
Nanjing Changan Motor Co., Ltd. ("Nanjing
Changan ") Under the common control of the same party
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Name of other related parties Relationship with the Company
Chongqing Nanfang Motorcycle Co., Ltd.
("Nanfang Motorcycle ") Under the common control of the same party
Chongqing Jianshe Construction Engineering
Co., Ltd. ("Construction Company ") Under the common control of the same party
Jiangmen Qingqi Huanan Motorcycle Co., Ltd.
("Jiangmen Qingqi ") Under the common control of the same party
Chongqing Changan Motor Customer Service
Co., Ltd. ("Changan Motor Customer Service
") Under the common control of the same party
China Jialing Industrial Joint Stock Limited
Company (Group) ("Jialing Industry ") Under the common control of the same party
Jiangxi Changhe Suzuki Motor Co., Former related party (Under the common
Ltd.("Changhe Suzuki ") control of the same party)
9.5 Related party transactions
9.5.1 Purchase of goods, rendering and receipt of labor services
Table of purchase of goods / receipt of services
Related party Content of related party transactions Year 2014 Year 2013
Fuyeda Service 667,645.18 828,054.00
Energy, service and equipment die
Jianshe Industry and mould 28,814,551.78 27,038,851.60
Pingshan TK Parts and components 7,333,110.36 9,482,651.74
Chongqing Jianshe
Yamaha Parts and components 73,544,581.59 81,171,498.64
Jianxing Machinery Parts and components 35,908,069.97 33,948,672.07
Jialing Industry Parts and components 8,990.31
Tongsheng Jianshe Parts and components 10,397,121.21 16,952,021.17
Jiangmen Qingqi Complete vehicle 97,601.71
China Jialing Parts and components 46,867.40
Changan Motor Receipt of maintenance 2,640,270.18 2,118,190.14
Receipt of maintenance and purchase
Changan Suzuki of accessories 858,539.00 2,295,799.14
Hebei Changan Receipt of maintenance 31,583.76
Nanjing Changan Receipt of maintenance 3,935.15
Changhe Suzuki Receipt of maintenance 160,140.81
Table of sales of goods/rendering of services
Related party Content of related party transactions Year 2014 Year 2013
Chongqing Jianshe Parts and components and finished
Yamaha products 343,643,530.80 356,736,262.59
Zhuzhou Jianshe Yamaha Parts and components 9,422,314.66 9,530,570.96
Parts and components and finished
Jialing Industry products 7,964.00 54,300.00
Parts and components and finished
Jiangmen Qingqi products 11,374,648.82 2,063,030.21
Tongsheng Jianshe Parts and components 2,782,950.61 5,329,104.98
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Changan Motor Finished products 173,852,043.45 117,683,073.50
Hebei Changan Finished products 1,273,881.20 2,088,864.96
Nanjing Changan Finished products 207,700.00 229,064.10
Changan Suzuki Finished products 78,010,474.93 58,371,772.93
Changan Motor Customer
Service Finished products 289,145.30
Changhe Suzuki Finished products 28,035,846.95
Jianshe industry Import agency 178,131.68 215,872.62
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 9.5.2 Related Guarantee
The Company acts as guarantor: (Unit: RMB'0,000)
Guaranteed Starting date of Maturity date Obligation
Guarantee
amount guaranty of guaranty discharged
The Air-conditioner Company 3,500 2014-7-23 2015-1-23 No
The Sale Company 4,500 2014-9-19 2015-3-19 No
The Sale Company 4,000 2014-11-5 2015-5-5 No
The Sale Company 2,800 2014-6-12 2015-6-11 No
The Air-conditioner Company 2,550 2014-7-3 2015-7-2 No
The Air-conditioner Company 5,000 2014-7-4 2015-7-3 No
The Company acts as guarantee: (Unit: RMB'0,000)
Guaranteed Starting date of Maturity date Obligation
Guarantor
amount guaranty of guaranty discharged
The Air-conditioner Company 50 2014-7-25 2015-1-25 No
The Air-conditioner Company 100 2014-4-10 2015-3-1 No
The Air-conditioner Company 100 2014-3-31 2015-3-1 No
The Air-conditioner Company 3,572 2014-10-15 2015-4-15 No
The Air-conditioner Company 3,572 2014-10-16 2015-4-16 No
The Import and Export Company 4,000 2014-10-28 2015-4-28 No
The Import and Export Company 3,000 2014-10-30 2015-4-30 No
The Air-conditioner Company 100 2013-5-22 2015-5-1 No
The Import and Export Company 4,900 2014-5-12 2015-5-11 No
The Air-conditioner Company 50 2014-7-25 2015-7-25 No
The Air-conditioner Company 100 2014-4-11 2015-9-1 No
The Air-conditioner Company 100 2014-3-31 2015-9-1 No
The Air-conditioner Company 2,200 2013-5-22 2015-11-1 No
The Air-conditioner Company 50 2014-7-25 2016-1-25 No
The Air-conditioner Company 100 2014-4-12 2016-3-1 No
The Air-conditioner Company 100 2014-3-31 2016-3-1 No
The Air-conditioner Company 2,400 2013-5-22 2016-5-21 No
The Air-conditioner Company 50 2014-7-25 2016-7-25 No
The Air-conditioner Company 2,000 2014-3-31 2016-9-1 No
The Air-conditioner Company 2,000 2014-4-13 2016-9-10 No
The Air-conditioner Company 200 2014-7-25 2017-1-25 No
The Air-conditioner Company 2,100 2014-3-31 2017-3-30 No
The Air-conditioner Company 2,100 2014-4-14 2017-4-8 No
The Air-conditioner Company 300 2014-7-25 2017-7-24 No
Remarks on the related guarantees: all parties involved in the Company's related guarantees are various companies within the scope of combination, and there is no any external guarantee.
9.5.3 Other related transactions
The financial businesses with South Finance Company
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Details of transaction category Trading unit Amount
Chongqing Jianshe Motorcycle 110,004.78
The Air-conditioner Company 5,558.52
The Import and Export Company 2,454.55
The Sale Company 137,418.77
Balances of deposits Sub-total 255,436.62
Chongqing Jianshe Motorcycle 322,390,000.00
The Air-conditioner Company 198,177,624.53
Balances of bank acceptance bills
discounted and before the maturity Sub-total 520,567,624.53
Loan balance Chongqing Jianshe Motorcycle 220,000.000.00
Total borrowings Chongqing Jianshe Motorcycle 545,000,000.00
Total reimbursement amount Chongqing Jianshe Motorcycle 375,000,000.00
Chongqing Jianshe Motorcycle 8,355.19
The Air-conditioner Company 4,157.47
The Sale Company 1,838.43
The Import and Export Company 2,520.11
Income from interests on deposits Sub-total 16,871.20
Chongqing Jianshe Motorcycle 19,841,526.24
The Air-conditioner Company 16,103,953.81
The Sale Company 1,781,038.88
Loans and discount interest
expenditures Sub-total 37,726,518.93
9.6 Accounts due from/to the related parties
9.6.1 Accounts receivable
Balance as at December 31, 2014 Balance as at January 1, 2014
Item Related party
Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts receivable
Changan Motor 37,962,584.68 71,129,789.95
Chongqing Jianshe Yamaha 23,000,000.00
Changan Suzuki 1,250,214.42
Nanjing Changan 95,395.88 61,431.05
Hebei Changan 344,647.00 303,209.00
Zhuzhou Jianshe Yamaha 1,402,763.68 1,195,573.72
9.6.2 Accounts payable
Book balance as at Book balance as at
Item Related party
December 31, 2014 January 1, 2014
Accounts payable
Jianxing Machinery 1,325,956.51 4,225,048.61
Pingshan TK 5,046,449.68 8,677,721.45
Chongqing Jianshe Yamaha 74,430,714.95 9,151,010.24
Tongsheng Jianshe 5,649,437.16 3,453,707.29
Jianshe Industry 166,329.45 100,065.91
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Book balance as at Book balance as at
Item Related party
December 31, 2014 January 1, 2014
Advances from
customers
Changan Suzuki 423,154.66
Jiangmen Qingqi 230,000.00
Other payables
Jianshe Industry 1,457,371.38 3,165,080.41
Fuyeda 96,818.38 95,980.00
The Construction Company 45,143.99 45,143.99
10. Commitments or contingencies
10.1 Significant commitment events
As of December 31, 2014, there are no commitment events that need to be disclosed by the Company..
10.2 Contingencies
Major contingencies on the balance sheet date:
Ningbo Zhenhai Yongzheng Investment Co., Ltd. filed a lawsuit against the Company for the reason that Chongqing Jianshe Motorcycle Co., Ltd. and Sun Weibao were incapable of carrying out a liquidation of Ningbo Jianshe Motorcycle Manufacturing Co., Ltd, requiring the Company to bear the joint and several liability for its creditor's rights and all litigation fees. The Fifth Intermediate People's Court of Chongqing Municipality opened a court session on January 16, 2014, and the first instance judgment was delivered on May 22, 2014, which said that the Company and Sun Weibao bore the joint and several liability of RMB3,194,300.00 and the court acceptance fee of RMB32,354.00. On May 28, 2014, the Company has instituted an appeal to the High People's Court of Chongqing Municipality, and the ruling has not been made. For the current year, the Company provides a provision for estimated liabilities of RMB3,226,654.00 according to the first instance judgment.
11. Post balance sheet events
There are no post balance sheet events that need to be disclosed by the Company
12. Other significant events
12.1 Corrections of significant accounting errors in prior period
12.1.1 The retroactive restatement method
During the current reporting period, no correction of accounting errors in previous period is subject to the retroactive restatement method.
12.1.2 The prospective application method
During the current reporting period, no correction of accounting errors in previous period is subject to the prospective application method.
12.2 Segment information
12.2.1 Basis for confirmation of reporting segments and accounting policies
Two reporting segments are determined in accordance with the internal organizational structure, management requirements and internal report system of the Company: the segment of motorcycle and accessories and the segment of automobile air-conditioner and accessories. Each reporting segment of the Company separately provides varied products or services. Because each segment needs different technologies or market strategies, the management of the Company manages each reporting segment's operating activities in a separate way, and conducts a regular evaluation of the operating results of each reporting
segment, so as to determine the resources to be distributed to it and to appraise its
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 performance.
The price of transfer between two segments is determined on the basis of actual trading price; The expenses attributable to each segment shall be summed according to the objects benefiting from a segment's products and be calculated. The assets are distributed according to the segment's operation and objects benefiting from a segment's products; a segment's liabilities include the liabilities attributable to the segment arising from the segment's operating activities. If the expenses relating to the liabilities jointly borne by several business segments are distributed to these business segments, the liabilities jointly borne shall also be distributed to these business segments.
12.2.2 Financial information of reporting segments
Automobile
Motorcycle and Offset among
Item air-conditioner Total
its parts segments
and its parts
Income from primary
businesses 968,500,508.27 727,458,750.72 1,695,959,258.99
Costs of primary
businesses 902,888,238.86 598,990,378.75 1,501,878,617.61
Business tax and
surcharges 18,581,762.86 2,257,541.72 20,839,304.58
Period expenses 284,058,975.42 68,362,019.89 352,420,995.31
Net profit -192,433,786.61 58,891,950.87 -133,541,835.74
Current asset 616,871,432.25 466,715,451.21 253,466,483.17 830,120,400.29
Including: accounts
receivable 80,736,025.36 174,277,664.36 255,013,689.72
Inventories 116,210,535.55 161,401,468.49 277,612,004.04
Non-current assets 1,390,536,531.50 168,554,078.64 1,559,090,610.14
Including: Fixed assets 563,884,305.90 152,046,387.10 715,930,693.00
Current liabilities 2,153,269,952.42 347,273,376.66 253,466,483.17 2,247,076,845.91
Including: short-term
borrowings 803,500,000.00 803,500,000.00
Notes payable 560,011,000.00 560,011,000.00
Accounts payable 457,375,942.79 130,845,438.93 588,221,381.72
Non-current liabilities 124,226,654.00 124,226,654.00
Net asset -270,088,642.67 287,996,153.19 17,907,510.52
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
13 Notes to the main items of financial statements of parent company
13.1 Accounts receivable
13.1.1 Disclosure of accounts receivable by category
Balance as at December 31, 2014 Balance as at January 1, 2014
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion
Book value
Proportion Proportion
Book value
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable with
significant single amount
and provision for bad
debt made on an
individual basis
Accounts receivable with
provision for bad debt
made on a portfolio with
similar risk credit
characteristics basis 28,063,808.14 100.00 1,726,458.29 6.15 26,337,349.85 6,504,300.37 100.00 1,701,656.20 26.16 4,802,644.17
Accounts receivables
with insignificant single
amount and provision for
bad debt made on an
individual basis
Total 28,063,808.14 100.00 1,726,458.29 6.15 26,337,349.85 6,504,300.37 100.00 1,701,656.20 26.16 4,802,644.17
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Accounts receivable with provision for bad debts made using the aging analysis method among those portfolios:
Balance as at December 31, 2014
Proportion
Aging
Accounts Provision for
of provision
receivable bad debts
(%)
1-6 months (including 6 months) 26,336,796.70
6-12 months
1-2 years (including 1 year) 66.86 6.69 10.00
2-3 years (including 2 years)
3-4 years (including 3 years)
4 - 5 years (including 4 years) 2,464.88 1,971.90 80.00
Over 5 years (including 5 years) 1,724,479.70 1,724,479.70 100.00
Total 28,063,808.14 1,726,458.29 6.15
13.1.2 Accounts receivables provided, reversed or recovered in the report year.
The provision for bad debts is RMB24,802.09 for the current year.
13.1.3 Top five accounts receivable by the credit balance as at December 31, 2014
The top five accounts receivable by the credit balance as at December 31, 2014 total RMB26,055,431.69, accounting for92.84% of total amount of balance as at December 31, 2014 of accounts receivable, and the balance as at December 31, 2014 of provision for bad debts provided correspondingly totals RMB868,836.00.
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
13.2 Other receivables
13.2.1 Disclosure of other receivables by category
Balance as at December 31, 2014 Balance as at January 1, 2014
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion
Book value
Proportion Proportion
Book value
Amount Amount Amount Amount
(%) (%) (%) (%)
Other
receivables with
significant single
amount and
provision for
bad debt made
on an individual
basis
Other
receivables with
provision for
bad debt made
on a portfolio
with similar risk
credit
characteristics
basis 246,681,877.86 100.00 4,352,118.85 1.76 242,329,759.01 213,234,414.42 100.00 4,354,854.59 2.04 208,879,559.83
Other
receivables with
insignificant
single amount
and provision
for bad debt
made on an
individual basis
Total 246,681,877.86 100.00 4,352,118.85 1.76 242,329,759.01 213,234,414.42 100.00 4,354,854.59 2.04 208,879,559.83
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Other receivables with provision for bad debts made using the aging analysis method among those portfolios:
Balance as at December 31, 2014
Proportion
Aging
Other Provision for
of
receivables bad debts
provision(%)
1-6 months (including 6 months) 242,187,697.42
6-12 months
1-2 years (including 1 year) 9,971.85 997.18 10.00
2-3 years (including 2 years)
3-4 years (including 3 years) 266,173.85 133,086.93 50.00
4 - 5 years (including 4 years)
Over 5 years (including 5 years) 4,218,034.74 4,218,034.74 100.00
Total 246,681,877.86 4,352,118.85 1.76
13.2.2 Provision for bad debts provided, reversed or recovered in the current year.
The provision for bad debts is decreased by RMB2,735.74 in the current year.
13.2.3 Other receivables classified by payment properties
Book balance as at Book balance as at
Property of account receivable
December 31, 2014 January 1, 2014
Fund transfer and trading between the
Company and its subsidiaries 234,802,410.46 197,453,921.96
Petty cash and temporary debits 6,715,381.02 9,800,950.62
Other agency funds temporarily paid 5,164,086.38 5,979,541.84
Total 246,681,877.86 213,234,414.42
13.2.4 Top five other receivables by credit balance as at December 31, 2014
Balance as at
Property of Balance as at Proportion in
December 31,
Company name account December 31, Aging total other
2014 of provision
receivable 2014 receivables(%)
for bad debts
Chongqing
Jianshe Sales Co., Current Within 1
Ltd. account 233,117,037.55 year 94.50
Shenzhen Jianshe
Motorcycle Co., Current Over 5
Ltd. account 3,013,664.00 years 1.22 3,013,664.00
Shanghai Jianshe
Motorcycle Co., Current Within 1
Ltd. account 1,685,372.91 year 0.68
Chongqing Office
of the Ningbo Current Over 5
Jianshe account 692,035.31 years 0.28 692,035.31
Ningbo Jianshe
Motorcycle Co., Current Over 5
Ltd. account 329,628.73 years 0.13 329,628.73
Total 238,837,738.50 96.81 4,035,328.04
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 13.3 Long-term equity investments
Balance as at December 31, 2014 Balance as at January 1, 2014
Item
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
subsidiaries 147,828,527.88 147,828,527.88 148,236,527.88 148,236,527.88
Investments in
associates and
joint ventures 686,053,137.47 686,053,137.47 689,241,790.19 689,241,790.19
Total 833,881,665.35 833,881,665.35 837,478,318.07 837,478,318.07
13.3.1 Investments in subsidiaries
Balance as
at
Provision
Balance as at Balance as at December
Increase Decrease for
Investee January 1, December 31, 31, 2014 of
in 2014 in 2014 impairment
2014 2014 provision
in 2014
for
impairment
Chongqing Jianshe
Motorcycle Sales
Co., Ltd. 225,000.00 225,000.00
Chongqing Jianshe
Sales Co., Ltd. 12,000,000.00 12,000,000.00
Chongqing Beifang
Jianshe Import and
Export Trade Co.,
Ltd. 57,443,527.88 57,443,527.88
Shanghai Jianshe
Motorcycle Co.,
Ltd. 8,568,000.00 408,000.00 8,160,000.00
Chongqing Jianshe
Automobile A/C
Co., Ltd. 70,000,000.00 70,000,000.00
Total 148,236,527.88 408,000.00 147,828,527.88
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014
13.3.2 Investments in associates and joint ventures
Increases/decreases in the current year Balance as
at December
Balance as at
profits and losses on
Balance as at Provision for
Decrease Other Changes Declaration of
31, 2014 of
Investee January 1,
Additional investments
December 31, impairment
in comprehensive in other cash dividends Others
provision
2014
investment recognized under the
2014 in 2014
investment income equity or profits
for
equity method
impairment
1．Joint ventures
Chongqing Jianshe
Yamaha Motor., Ltd. 312,930,241.12 12,047,469.02 -15,000,000.00 309,977,710.14
Zhuzhou Jianshe Yamaha
Motor., Ltd. 277,356,765.96 19,614,954.78 -19,000,000.00 277,971,720.74
Chongqing Pingshan TK
Carburettor Co., Ltd. 80,445,464.73 2,813,852.72 -1,470,000.00 81,789,317.45
Sub-total 670,732,471.81 34,476,276.52 -35,470,000.00 669,738,748.33
2．Associates
Chongqing Tongsheng
Machinery Co., Ltd. 2,079,588.23 -1,675,148.26 404,439.97
Chongqing Nanfang
Motorcycle Technology
Research and
Development Co., Ltd. 16,429,730.15 -519,780.98 15,909,949.17
小计 18,509,318.38 -2,194,929.24 16,314,389.14
Total 689,241,790.19 32,281,347.28 -35,470,000.00 686,053,137.47
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 13.4 Operating income and operating costs
Year 2014 Year 2013
Item
Income Cost Income Cost
Primary businesses 870,781,498.40 852,658,397.72 1,007,004,631.75 959,279,713.15
Other businesses 561,851,135.28 513,191,111.21 552,238,191.86 484,135,492.35
Total 1,432,632,633.68 1,365,849,508.93 1,559,242,823.61 1,443,415,205.50
13.5 Investment income
Item Year 2014 Year 2013
Long-term equity investment income calculated by cost
method
Long-term equity investment income calculated by equity
method 32,281,347.28 38,767,736.11
Investment income from disposal of long-term equity
investment
Investment income from financial assets measured at fair
value through current profit and loss during the
Investment income from disposal of financial assets
measured at fair value through current profit and loss
Investment income from holding of held-to-maturity
investments
Investment income from holding of available-for-sale
financial assets
Investment income from disposal of available-for-sale
financial assets
Others -408,000.00 -408,000.00
Total 31,873,347.28 38,359,736.11
14. Supplementary information
14.1 Detailed statement of current non-recurring profit and loss
Item Amount Remark
Profits or losses from disposal of non-current assets -328,218.08
Tax returns, deduction and exemption approved beyond the
authority or without official approval documents
Government grants included in current profits and losses
(except for government grants closely related to the
enterprise business, obtained by quota or quantity at unified
state standards) 2,875,800.00
Payment for use of state funds received from non-financial
institutions recorded in current profits and losses
Gains from the difference between the investment costs of
acquisition of subsidiaries, associates and joint ventures and
share in the net fair value of the identifiable assets of the
investee when investing
Gains or losses from non-monetary asset exchange
Gains or losses from entrusting the investments or
management of asset
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 Item Amount Remark
Impairment provision for force majeure such as natural
calamities
Profits or losses from debt restructuring
Restructure expenses, such as the compensation for employee
relocation and integration costs
Gains or losses from transactions with obvious unfair
transaction price
Year-to-date net profits or losses of subsidiaries arising from
business combination under common control
Profits or losses arising from contingencies not related to the
company‘s normal business
Except for effective hedging business related to the normal
business of the company, profits or losses from fair value
changes in held-for-trading financial assets and
held-for-trading financial liabilities, and investment income
from disposal of held-for-trading financial assets,
held-for-trading financial liabilities and available-for-sale
financial assets
Reversal of the impairment provision for receivables subject
to separate impairment test
Profits or losses from entrusted loans
Profits or losses from fair value changes in investment
property subsequently calculated with the fair value mode
Impacts of one-time adjusting the current profits or losses in
accordance with requirements of tax and accounting laws and
regulations on the current profits and losses
Custodian income from entrusted management
Other non-operating income and expenditure except for the
above items 17,756,677.38
Other profits or losses which can be deemed as non-recurring
profits or losses
Income tax effects
Minority interest effects -131.74
Total 20,304,391.04
14.2 Rate of return on net assets and earnings per share:
Weighted Earnings per share (Yuan)
average rate of
Profit during the reporting period Basic Diluted
return on net
earnings per earnings per
assets(%)
share share
Net profit attributable to ordinary
shareholders of the Company -158.82 -1.119 -1.119
Net profit attributable to ordinary
shareholders of the Company after
deducting the non-recurring profit and
loss -182.95 -1.289 -1.289
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 14.3 Supplementary information relating to adjustments for changes in accounting policies The Company has changed the relevant accounting policies and has carried out a retroactive restatement for the comparative financial statements in accordance with the Accounting Standards for Business Enterprises No.2– Long-term Equity Investments, and the consolidated balance sheets as at January 1, 2013, December 31, 2013 and December 31, 2014 after the restatement are as follows:
January 1, December 31,
Item December 31, 2014
2013 2013
CURRENT ASSETS:
Cash and cash equivalents 456,794,093.39 388,314,602.28 192,918,049.28
Balances with clearing companies
Loans to banks and other financial institutions
Financial assets measured at fair value through
current profit and loss
Derivative financial assets
Notes receivable 74,465,864.34 81,253,424.87 45,673,753.36
Accounts receivable 288,659,903.69 311,899,501.77 255,013,689.72
Advances to suppliers 49,946,177.48 32,738,242.83 23,181,893.00
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Interests receivable
Dividends receivable
Other receivables: 36,132,451.85 23,946,335.95 15,618,940.96
Financial assets purchased under resale
agreements
Inventories 290,979,725.84 299,191,811.74 277,612,004.04
Classified into assets held for sale
Non-current assets maturing within one year
Other current assets 24,931,229.51 17,127,455.06 20,102,069.93
Total current assets 1,221,909,446.10 1,154,471,374.50 830,120,400.29
NON-CURRENT ASSETS:
Disbursement of advances and loans
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 683,560,523.11 689,241,790.19 686,110,128.77
Investment property
Fixed assets 825,584,794.37 765,309,375.94 715,930,693.00
Construction in progress 15,642,058.43 9,289,928.04 16,315,153.10
Project materials
Disposal of fixed assets
Productive biological assets
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 January 1, December 31,
Item December 31, 2014
2013 2013
Oil and gas assets
Intangible assets 118,116,994.56 103,263,664.23 92,488,110.55
Development expenditures 30,641,485.76 27,603,929.21 36,689,261.07
Goodwill
Long-term deferred expenses 10,706,762.47 7,928,011.24 7,801,134.53
Deferred income tax assets 3,123,854.35 3,564,354.64 3,756,129.12
Other non-current assets 816,000.00 408,000.00
Total non-current assets 1,688,192,473.05 1,606,609,053.49 1,559,090,610.14
Total assets 2,910,101,919.15 2,761,080,427.99 2,389,211,010.43
CURRENT LIABILITIES:
Short-term borrowings 756,115,520.89 896,805,047.85 803,500,000.00
borrowings from central bank
absorption of deposits and interbank deposits
Loans from banks and other financial institutions
Financial liabilities measured at fair value
through current profit and loss
Derivative financial liabilities
Notes payable 768,980,000.00 742,696,400.00 560,011,000.00
Accounts payable 502,109,222.01 536,553,953.76 588,221,381.72
Advances from customers 90,756,705.60 29,177,260.79 19,883,635.95
financial assets sold under repurchase agreements
Handling charges and commissions payable
Employee compensation payable 2,014,669.47 2,619,043.15 3,068,735.80
Taxes and surcharges payable 140,130,552.50 141,501,696.42 136,504,668.13
Interests payable
Dividends payable
Other payables 26,566,279.30 32,539,679.76 24,887,424.31
Reinsurance accounts payable
Reserves for insurance contracts
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Classified into liability held for sale
Non-current liabilities maturing within one year 231,500,000.00 98,000,000.00 111,000,000.00
Other current liabilities
Total current liabilities 2,518,172,949.77 2,479,893,081.73 2,247,076,845.91
NON-CURRENT LIABILITIES:
Long-term borrowings 246,200,000.00 129,000,000.00 121,000,000.00
Bonds payable
Including: preferred shares
Perpetual capital securities
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 January 1, December 31,
Item December 31, 2014
2013 2013
Long-term payables
Long-term employee compensation payable
Special payables 738,000.00 738,000.00
Estimated liabilities 3,226,654.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 246,938,000.00 129,738,000.00 124,226,654.00
Total liabilities 2,765,110,949.77 2,609,631,081.73 2,371,303,499.91
Owners' equity:
Share capital 477,500,000.00 119,375,000.00 119,375,000.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserve 602,880,517.59 960,505,517.59 960,505,517.59
Less: treasury shares
Other comprehensive income 9,800.00 9,800.00
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00 125,686,000.00
General risk reserves
Retained earnings -1,063,624,266.50 -1,054,661,171.00 -1,188,255,120.98
Total equity attributable to owners of the parent
company 142,442,251.09 150,915,146.59 17,321,196.61
Minority equity 2,548,718.29 534,199.67 586,313.91
Total owners' equity: 144,990,969.38 151,449,346.26 17,907,510.52
Total liabilities and owners' equity 2,910,101,919.15 2,761,080,427.99 2,389,211,010.43
Section XII. Documents for Reference
I. Annual Report carrying personal signature and seal of the Chairman of the Board;
II. Financial Statements with signatures of the legal representative, the financial officer, and accounting manager. III. Original copy of theAuditors‘ Report with the seal of the CPA and signed by the certified accountants(信会师报字[2015]第710812号).
IV. All of the originals of theCompany‘s documents and public notices publicized by the presses designated by China Securities Regulatory Commission in the report period;
CHONGQING JIANSHE MOTORCYCLE CO., LTD. Annual Report 2014 V. Statement on special audition on appropriation of capital by controlling shareholder and related parties of Chongqing Jianshe Motorcycle Co., Ltd.(信会师报字[2015]第710639号)
VI. Auditing Report on Internal Control of Year 2014 for Chongqing Jianshe Motorcycle Co., Ltd.(信会师报字[2015]第710813号)
VII. Special statement on financial transactions such as related loans involving with financial institutions(信会师报字[2015]第710640号)