Chongqing Jianshe Vehicle System Co., Ltd. Summary of the Annual Report 2017 Stock code: 200054 Stock Abbreviation: Jianmo B Announcement No.: 2018-007
Chongqing Jianshe Vehicle System Co., Ltd.
Summary of the Annual Report 2017
1。 Important notes
The summary is abstract from full-text of summary of the semi-annual report, for more details information , investors should found in the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed by CSRC.
Objection statement of directors, supervisors and senior executives
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|Name|Position|Content and reason|

Statement
Other directors attending the Meeting for annual report deliberation except for the followed:
|||||
|-|-|-|-|
|The name of director who did|||The name of director who was|
||Positions|Reason||
|not attend the meeting in person|||authorized|
|Wang Jun|Independent director|Business trip|Li Dingqing|

Non-standardauditor’s opinion
□ Applicable√ Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to the Board during the reporting period.
□ Applicable√ Not applicable
The Company will not distribute ash dividend or bonus shares, neither capitalizing of common reserves for the report period.
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable√ Not applicable
II. Basic information about the company
1. Company profile
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|-|-|-|-|-|
|Stock ID|Jianshe Vehicle B|Stock Code||200054|
|Stock Exchange Listed in|Shenzhen Stock Exchange||||
|Abbreviations for stocks before|||||
||Jianmo B||||
|change( If any)|||||
|Contact person and contact manner|Board secretary||Securities affairs Representative||
|Name|Lu Hongxian||Liu Hongyu||
||No.1 Jianshe Road, Huaxi Industrial Zone,Ba’nan District , Chongqing||No.1 Jianshe Road, Huaxi Industrial Zone,Ba’nan District , Chongqing||
|Office address|||||
|Fax|023-66295333||023-66295333||
|Tel|023-66295333||023-66295333||
|E-mail|cqjsmc@jianshe.com.cn||cqjsmc@jianshe.com.cn||

Chongqing Jianshe Vehicle System Co., Ltd. Summary of the Annual Report 2017 2. Brief introduction to the main business or products in the reporting period
The company engages mainly in production and sales of the vehicle air compressor including the vane iron and aluminous compressor, piston swash-plate fixed discharge rate compressor, piston swash-plate variable discharge rate compressor and motor compressor (with the discharge rate from 32cc to 480cc), has been awarded “China Famous Brand”, “High-quality Product of French Technological Quality Surveillance Evaluation Commission” and “China Recommended Product for Entry into WTO”, etc. for products and has the strategical cooperative partners including the leading production and sales volume in terms of finished automobile such as Chanan Auto, PEUGEOT, Dongfeng Nissan, Changan Suzuki and Great Wall Automobile, etc.
3.Major accounting data and financial indicators
（1）Major accounting data and financial indicators for the last three years
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes√ No
In RMB
||||||
|-|-|-|-|-|
||||Changed over last year||
||2017|2016||2015|
||||（％）||
|Operating Gross income（Yuan）|1,009,531,078.68|873,286,486.75|15.60%|1,341,331,910.93|
|Net profit attributable to the|14,375,111.84|12,267,006.14|||
|shareholders of the listed company|||17.19%|240,735,112.20|
|（Yuan）|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable|||||
||13,866,734.69|12,908,428.98|-4.40%|-255,602,553.80|
|to the shareholders of listed|||||
|company（Yuan）|||||
|Cash flow generated by business|62,980,107.16|108,619,119.02|||
||||-42.02%|82,306,010.61|
|operation, net（Yuan）|||||
|Basic earning per|0.120|0.103|||
||||16.50%|2.017|
|share(Yuan/Share)|||||
|Diluted gains per|0.120|0.103|||
||||16.50%|2.017|
|share(Yuan/Share)(Yuan/Share)|||||
|Net asset earning ratio（%）|5.22%|4.68%|0.54%|175.35%|
|||End of|Changed over last year||
||End of 2017|||End of 2015|
|||2016|（％）||
|Gross assets（Yuan）|1,302,238,427.15|1,559,334,881.03|-16.49%|1,550,615,831.44|
|Net assets attributable to|282,758,203.49|268,383,091.65|||
|shareholders of the listed company|||5.36%|256,116,085.51|
|（Yuan）|||||

（2）Main Financial Index by Quarters
In RMB
||||||
|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
|Operating income|304,027,257.44|246,047,000.40|213,507,572.24|245,949,248.60|
|Net profit attributable to the|9,821,043.23|1,597,276.13|3,184,880.64|-228,088.16|
|shareholders of the listed company|||||
|Net profit after deducting of|9,038,679.96|2,103,249.75|2,624,001.74|247,571.72|
|non-recurring gain/loss attributable|||||
|to the shareholders of listed|||||
|company|||||
|Net Cash flow generated by|42,677,534.79|20,457,560.12|19,834,730.29|-19,989,718.04|
|business operation|||||

Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
Chongqing Jianshe Vehicle System Co., Ltd. Summary of the Annual Report 2017□ Yes√No
4.Share capital and shareholders
（1）Number of holders of ordinary shares and preference shares with restored voting right and Top 10 shareholders
In shares
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Total numberof commonshareholders atthe end of the||Total||||||Total||0|
|||||||The total number|||||
|||shareholders at||||||preferred sharehold|||
|||||||of preferred shar|||||
|||the end of the||||||ers at the end of the|||
||8,270|||8,173||eholders voting ri|0||||
|||month from the||||||month from the date|||
|reportingperiod||date of disclosing||||ghts restored at p||of disclosing the|||
|||||||eriod-end|||||
|||the annual report||||||annual report|||
|Shareholdings of Top 10 shareholders|||||||||||
||||||Number of||||Number or share||
|Shareholders|||||||||||
||Nature of||Proportion of||shares held|Amount of restricted shares held|||pledged/frozen||
||shareholder||shares held（%）||at period||||State of share|Amount|
||||||-end||||||
|ChongqingJiansheMechanical andElectric Co.,Ltd.|State-ownedlegal person||71.13%||84,906,250|84,906,250|||||
||||||||||Freeze|6,900,000|
|Gu Zuocheng|Domesticnaturalperson||1.89%||2,261,000|2,218,750|||||
|AnhuiHengshengEconomicDevelopmentGroup Co., Ltd.|Domesticnon-state-owned legalperson||1.47%||1,750,000|1,750,000|||||
|Liu Dan|Domesticnaturalperson||0.86%||1,032,201|0|||||
|Yu Lingfeng|Domesticnaturalperson||0.52%||623,621|0|||||
|Chen Xinqiang|Domesticnaturalperson||0.51%||612,400|0|||||
|Xu Yuanhui|Domesticnaturalperson||0.51%||610,789|0|||||
|Zhang Meilan|Domesticnaturalperson||0.43%||513,560|0|||||
|Feng Yonghui|Domesticnaturalperson||0.42%||500,000|500,000|||||
|COREPACIFIC-YAMAICHIINTERNATIONAL (H.K.)LIMITED|Overseaslegal person||0.36%||424,550|0|||||
||||There isn’t any associated relationship between the sponsoring shareholder and the other||||||||
|Explanation on associated|||||||||||
||||shareholders among the top-10 list. None of them are regarded as ‘Acting in concert’ in accordance||||||||
|relationship among the|||||||||||
||||with ‘The rules of information disclosure on change of shareholding.’ Foreign shareholders are||||||||
|aforesaid shareholders|||||||||||
||||unknown for their condition of ‘Associated relationship’ and ‘Acting in concert’.||||||||

(2)Total preference shareholders and the shares held by the Top 10 Preference shareholders
□ Applicable√ Not applicable
Chongqing Jianshe Vehicle System Co., Ltd. Summary of the Annual Report 2017 Nil
(3)Block diagram of the ownership and control relations between the Company and the actual controller
国务院国有资产监督管理委员会
100%
中国兵器装备集团有限公司
100%
重庆建设机电有限责任公司
71.13%
重庆建设摩托车股份有限公司
5. Corporation bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due butnot folly cashed on the approval date of annual report
No
III. Discussion and Analysis of the Management
1. Business Operation summary in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
For the year, the company planned the sales volume of the vehicle air compressors 2.3 million with the sales revenue of 880 million yuan. It completed the actual sales volume 2.316 million accounting for101% of that planned at the beginning of the year and realized the actual operation revenue 909 million yuan accounting for103% of that planned at the beginning of the year.
1. Industrial structure adjustment. In the current year, the company transfers shares of Shanghai Construction and exits from the motorbike industry; purchases the automobile part processing equipment and integrates the automobile air condition compressor supporting processing business; establishesHan’ang Joint Venture and fills up the product and technology vacancy thereof.
2. Market structure optimization. Firstly, the company strengthens management and development of large clients. The company has cultivated 11 large clients including the top three automobile proprietary brands in China (Chana, Geely Auto and Great Wall Automobile), which accounts for91.2% of the sales volume. Secondly, the company has been focusing on the international market development. The international market key points include PSA market development strengthening, Iranian market recovery, the market deep development in Malaysia and South America and the new market development in India for the purpose of its rapid development. The sales amount in 2017 hit 582,500 with293% increase compared with that in the last year. Thirdly, the company develops the new energy market positively. It entered into Levdeo low-speed electrocar project smoothly, won Chana A002EV project, realized the bulk supply for the pure electric logistic vehicle of Taichang (Dongfeng Special Vehicle) and Jiangxi Xindian (Foton) and finished the power-driven products design for passenger cars basically.
Chongqing Jianshe Vehicle System Co., Ltd. Summary of the Annual Report 2017 3. StrengtheningR&D capacity. Firstly, it finished the testing capacity construction project wholly, put semi-anechoic room for finished automobile into usage and obtained the low-temperature capacity approval by CNAS. Secondly, it improved the client project development capacity and fundamental research level further, applied P4 technology for compressors wholly, finished the whole work in the finished product design state for the self-development 140 irony machine and achieved obvious progress in the aluminous machine blade electroplating. Thirdly, it intensified the technological management, applied for 19 patents for the whole year including 3 invention ones, 10 utility model ones and 6 appearance design ones.
4. Advancing brand building: the company won French PAS “Best Cooperation Award” and “Best Quality Award” among more than 500 suppliers for Great Wall Automobile, whose brand effect improved significantly and the awareness in the industry improved further.
5. Improving manufacturing capacity: firstly, it finished the capacity expansion and technology improvement work wholly, improved the automation level, online surveillance capacity and automatic error prevention capacity further and increased the manufacturing volume from 1,500,000 to 2,300,000 after the capacity expansion through the full manufacturing capacity. Secondly, it optimized the quality management system continuously, passed Dongfeng Peugeot CitroenQSB+approval examination smoothly and improved the new project acquisition capacity further.
2. Material change in principal activities during the reporting period
□ Yes√No
3. Products accounting for over10% of revenue or profit from principal activities of the Company
√ Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase|Increase||
|||||||Increase /decrease|
||||Gross profit|/decrease of|/decrease of||
|Name|Operating income|Operating cost||||of Gross profit|
||||ratio%|operating income|operating cost||
|||||（％）|（％）|ratio（％）|
|Vehicle air|||||||
||981,936,878.97|166,859,961.89|16.99%|16.15%|10.98%|-0.79%|
|conditioner|||||||

4. Seasonal or cyclical operations requiring special attention
□ Yes√No
5. Material difference of revenue, operating costs or net profit attributable to holders of ordinary shares of the Company for the reporting period from the last reporting period
√ Applicable□Not applicable
In the year, the company realized the sales volume of the vehicle air compressor increase by7.38% on the year-on-year basis and the total operation revenue increase of15.6% for the whole year (including the export sales revenue increase by260% on the year-on-year basis). Because of the bulky material price and labor cost rise, the main business cost increased by17.26% on the year-on-year basis in the current period and the product gross profit rate decreased by7.68% on the year-on-year basis.
6. Suspension in trading or delisting
□ Applicable√ Not applicable
7. Events relating to the financial report
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared to the financial report for the prior year
√ Applicable□Not applicable
1. Changes in accounting policies
① Changes in accounting policies due to the adoption of new accounting standards
Chongqing Jianshe Vehicle System Co., Ltd. Summary of the Annual Report 2017 a. On April 28, 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprises No.42—Non-Current Assets and Disposal Groups Held for Sale and Termination of Business Operation (No. 13[2017] of the Ministry of Finance), which was effective on and from May 28, 2017. The held-for-sale noncurrent assets, disposal groups and discontinued operations on the effective date shall be recognized prospectively. b. On May 10, 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprises No. 16 - Government Subsidies (revised in 2017) (No. 15[2017] of the Ministry of Finance), which was effective on and from June 12, 2017. The government subsidies existing on January 1, 2017 shall be recognized prospectively, and those increased from January 1, 2017 to the effective date shall be adjusted in accordance with these standards.
According to the provisions of No. 15[2017] of the Ministry of Finance, the Company will present the revised financial statements and adjust the financial interest subsidy from non-operating income to financial expense-interest expenditure. The change has no significant impact on financial conditions, operating results and cash flows.
c. On December 25, 2017, the Ministry of Finance issued the Notice on Revising and Issuing the Format of Financial Statements of General Enterprises (No. 30[2017] of the Ministry of Finance), which is applicable to the preparation of financial statements for 2017 and subsequent periods.
2. Changes in accounting estimates
The Company does not have significant changes in accounting estimates this year.
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period□ Applicable√ Not applicable
Nil
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report for the prior year
□ Applicable√ Not applicable
Nil