Chongqing Changan Automobile
Company Limited
2014 Annual Report
April, 2014
Chapter 1 Important Notice, Contents, and Definitions The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Executives of our company hereby guarantee that no false or misleading statement or major omission was made to the materials in this report and that they will assume all the responsibilities, individually and jointly, for the trueness, accuracy and completeness of the contents of this report.
Other directors attended the board meeting for reviewing the annual report except for the following director:
|||||
|-|-|-|-|
|Name of the Director|The position for the|Reasons for the absence|Name of the consignee|
||absent director|||
|Peng Shaobing|Independent Peng|On Health Reasons|N/A|

The preplan profit distribution of the Company deliberated and approved by the Board is: taking the total shares as of Dec. 31, 2014 as the radix, sending cash dividends of RMB 2.5Yuan (tax included) per every 10 shares to its all shareholders, and not converting capital reserve into share capital. Chairman of the Board Xu Liuping, the Chief Financial Officer Wang Kun and the responsible person of the accounting institution (Accountant in charge) Hua Zhanbiao hereby declare that the Financial Statements enclosed in this annual report are true, accurate and complete.
The prospective description regarding future business plan and development strategy in this report does not constitute virtual commitment. The investors shall pay attention to the risk.
The report shall be presented in both Chinese and English, and should there be any conflicting understanding of the text, the Chinese version shall prevail.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1 Chapter 2 Company Profile ........................................................................................ 5 Chapter 3 Summary of Accounting Data and Financial Indexes ............................... 8 Chapter 4 Report of the Board of Directors ............................................................. 10 Chapter 5 Important Matters .................................................................................... 29 Chapter 6 Changes in the shareholding of the company and shareholders .............. 34 Chapter7 Information about Directors, Supervisors, Senior Management and Employees ................................................................................................................... 40 Chapter 8 Corporate Governance ............................................................................. 52 Chapter 9 Internal Control ........................................................................................ 56 Chapter 10Auditor’s Report ....................................................................................... 58 Chapter 11 Documents for Future Reference ............................................................ 203
Definitions
||||
|-|-|-|
|Changan Auto.,the Company|Refers to|Chongqing Changan Automobile Company Limited|
|South Industries|Refers to|China South Industries Group Corp. Company’s actual controller|
|China Changan|Refers to|China Changan Automobile Group Corporation, old name: China SouthIndustries automobile Co., Ltd., a subsidiary company of South Industries|
|Changan Industry|Refers to|Chongqing Changan Industry (Group) Co., Ltd., old name: Changan AutomobileCo., Ltd., Changan Automobile (Group) Co., Ltd., a subsidiary company ofSouth Industries, the controlling shareholder of the Company before December,2005|
|Nanjing Changan|Refers to|Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company|
|Hebei Changan|Refers to|Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company|
|Baoding ChanganBus|Refers to|Baoding Changan Bus Co., Ltd., a subsidiary company of the Company|
|InternationalCompany|Refers to|Chongqing Changan Automobile International Sale Service Co., Ltd.|
|CFMA|Refers to|Changan Ford Mazda Automobile Co.,，a JV of the Company|
|CFME|Refers to|Changan Ford Mazda Engine Co., a JV of the Company|
|Changan Suzuki|Refers to|Chognqing Changan Suzuki Auto. Co.Ltd., a JV of the Company|
|CAPSA|Refers to|Changan PSA Automobiles Co., Ltd，a JV of the Company|
|Jiangling holding|Refers to|Jiangling Holding Co., a JV of the Company|
|Hafei Group|Refers to|Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company ofChina Changan|
|CMAL|Refers to|Chongqing Changan Minsheng APLL Logistics Co., Ltd, a subsidiary companyof Changan Industry|
|Financial Co. ofCSGC|Refers to|Financial Co. of China South Industries Group Corporation|
|||United Prosperity (Hong Kong)Investment Co., Limited ,a subsidiary company|
|UPI|Refers to||
|||of China Changan|
|Hefei Changan|Refers to|Hefei Changan Automobile Co., Ltd., a subsidiary company of the Company|

Matrial Risk Notice
In the fourth chapter of Report of Board of Directors, the company describes the competition pattern and development trend of the automobile industry, thecompany’s business plan in 2015, the possible risks. Please refer to the relevant part. The prospective description regarding future business plan and development strategy in this report does not constitute virtual commitment. The investors shall pay attention to the risk.
Chapter 2 Company Profile
I. Basic Information
|||||
|-|-|-|-|
|Stock abbreviation|Changan Automobile Changan B|Stock Code|000625、200625|
|Listed on|Shenzhen Stock Exchange|||
|Company name in|重庆长安汽车股份有限公司|||
|Chinese||||
|Company abbreviation in||||
||长安汽车|||
|Chinese||||
|Company name in||||
||Chongqing Changan Automobile Company Limited|||
|English||||
|Legal representative|Xu LiuPing|||
|Registered address|No. 260, East Jianxin Road Jiangbei District, Chongqing|||
|Post code of the registered||||
||400023|||
|address||||
|Office address|No. 260, East Jianxin Road, Jiangbei District, Chongqing|||
|Post code of the office||||
||400023|||
|address||||
|Website|http://www.changan.com.cn|||
|E-mail address|cazqc@changan.com.cn|||

II. Contact Information
||||
|-|-|-|
||Secretary of the Board of Directors|Securities affairs representative|
|Name|Wangkun( On behalf),Lijun||
||No. 260, East Jianxin Road, Jiangbei||
|Contact address|||
||District, Chongqing||
|TEL:|023-67594008，67594009||
|FAX:|023-67866055||
|E-mail address|cazqc@changan.com.cn||

II. Information Disclosure and Filing Site
|||
|-|-|
|Newspaper selected by the Company for||
||China Securities Journal, Securities Daily and Hong Kong Commercial Daily|
|information disclosure||
|Website selected by CSRC for publishing||
||www.cninfo.com.cn|
|this annual report||
|The place where this annual report is||
||Secretary's Office of Board of Directors|
|prepared and kept||

IV. Changes of Registration Information
|||||||
|-|-|-|-|-|-|
||||Registered number|||
|||Registered|of the corporation|Tax registration|Organization|
||Registration date|||||
|||address|legal person’s|No.|code|
||||business license|||
|||No.309,Nanchengda||||
|||||Guoshuichongzi|Yujing|
|First registration|Oct. 31,1996|dao,Nan’an District,|5000001805570|||
|||||51021120286320X|28546236-3|
|||Chongqing||||
|||No. 260, East||Yuguoshuizi||
|Registration at the||||||
|||Jianxin Road|Yuzhi|50010520286320XY||
|end of reporting|Aug. 24, 2012||||20286320-X|
|||Jiangbei District,|500000000005061|udishuizi||
|period||||||
|||Chongqing||50010520286320X||
|||1.In Oct. 2005, according to the restructuring program on automobile business, the||||
|||Company’s actual controller, China South Industries Group Corporation made||||
|||transferring of all state-owned shares of the Company as part of funding for China||||
|||South Industries Automobile Company Limited. In March 2006, all shares held by||||
|||Changan Group have been transferred to China South Industries Automobile Company||||
|All previous changes of dominant||||||
|||Limited. China South Industries Automobile Company Limited became the majority||||
|stockholders||||||
|||shareholder of the Company, and Changan Group holds zero share since then.||||
|||2. In July 2009, with the approval of State Administration for Industry and Commerce,||||
|||“China South Industries Automobile Company Limited”, changed its name to “China||||
|||Changan Automobile Group Co., Ltd.”. After change of its name, its property,||||
|||ownership and control relation are without change.||||

V. Other Relevant Information
The accounting firm employed by the Company:
|||
|-|-|
|Name of the accounting firm|ERNST&YOUNG Hua Ming LLP|
||Level 16, Ernst & Young Tower, Oriental Plaza, No. 1 East|
|Address of the accounting firm||
||Chang An Avenue, Dong Cheng District, Beijing, China|
|Name of the certified public accountant for signature|Qiao Chun，Ai Wei|

The recommendation agency engaged by the Company executing the persistant supervision responsibilities in the report period
□ Applicable√ Not applicable
The financial consultant engaged by the Company performs the duties of persistant supervision and guidance in the report period
□ Applicable√ Not applicable
Chapter 3 Summary of Accounting Data and Financial Indexes I. Major Accounting Data and Financial Indexes
Unit: Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decreas|||
|||2013|||2012||
|||||e on a|||
||2014|||year-on-year|||
|||||basis|||
|||Before adjustment|Adjusted||Before adjustment|Adjusted|
|||||(%)Adjusted|||
|Operating revenue (Yuan)|52,913,332,100.83|38,481,862,261.90|39,141,703,050.19|35.18%|29,462,588,753.56|29,462,588,753.56|
|Net profit belonging to|||||||
|shareholders of the listed|7,561,081,585.81|3,505,640,520.04|3,368,591,105.89|124.46%|1,446,409,591.28|1,446,409,591.28|
|company (Yuan)|||||||
|Net profit belonging to|||||||
|shareholders of the listed|||||||
|company after deduction of|7,279,008,679.47|3,323,415,945.67|3,120,551,968.04|133.26%|1,071,948,748.07|1,071,948,748.07|
|non-recurring profit and loss|||||||
|(Yuan)|||||||
|Net cash flow arising from|||||||
||3,779,921,774.57|1,832,646,224.37|1,537,154,348.43|145.90%|511,885,673.38|511,885,673.38|
|operating activities (Yuan)|||||||
|Basic earnings per share|||||||
||1.62|0.75|0.72|125.00%|0.31|0.31|
|(Yuan/Share)|||||||
|Diluted earnings per share|||||||
||Not applicable|Not applicable|Not applicable|Not applicable|Not applicable|Not applicable|
|(Yuan/Share)|||||||
|||||12.43|||
|Return on equity (ROE) (%)|34.20%|20.44%|21.77%|Percentage|9.66%|9.66%|
|||||points Increased|||
|||||Increase/decreas|||
|||End of 2013||e of|End of 2012||
|||||the end of|||
||End of 2014|||current year|||
|||||compared with|||
|||Before adjustment|Adjusted|that of|Before adjustment|Adjusted|
|||||the previous|||
|||||year (%)|||
|Total assets (Yuan)|69,687,352,890.82|53,364,694,275.91|54,612,107,747.02|27.60%|46,117,604,792.27|47,869,326,686.22|
|Net assets belonging to|||||||
|shareholders of the listed|||||||
|company (Owner's equity|25,637,298,549.80|18,778,354,427.87|18,857,112,774.61|35.96%|15,512,935,348.26|15,628,743,109.15|
|belonging to shareholders of|||||||
|the listed company) (Yuan)|||||||

II.The differences between domestic and international accounting standards
(1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable√Not applicable
No difference
(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.□ Applicable√Not applicable
No difference
III. Items of non-recurring profit and loss and related amounts:
Unit: Yuan
|||||
|-|-|-|-|
|||Amount of 2013||
|Item|Amount of 2014||Amount of 2012|
|||(Restated)||
|Profit and loss from disposal of non-current assets (including the||||
||-17,293,198.19|14,249,629.45|-2,659,276.68|
|write-off of assets depreciation reserves)||||
|Government subsidiaries included in current profit and loss||||
|(except those closely related with the Company, which are||||
||339,001,795.70|234,412,047.68|402,264,192.28|
|enjoyed by rating or quotas according to uniform standards of the||||
|State)||||
|Current net gains/losses of the subsidiaries from period-begin to||||
|consolidated date occurred from enterprise merger under the|-43,390,581.51|||
|common control||||
|Investment income from the fair value changes of held for trading||||
|financial assets or liabilities, and the disposal of held for trading|-|-332,407.00|-1,193,392.63|
|financial assets, liabilities or available for sale financial assets||||
|Other non-operating revenue and expenses except the||||
||40,605,150.13|2,181,517.38|5,351,829.85|
|above-mentioned items||||
|Capital occupied income from non-financial entities|36,729,835.74|44,444,713.09|66,458,214.91|
|Less: Influenced amount of income tax|66,584,968.46|45,704,294.34|94,185,371.56|
|Amount of influence of minority shareholders’ equity (after tax)|6,995,127.07|1,212,068.41|1,575,352.96|
|Total|282,072,906.34|248,039,137.85|374,460,843.21|

 For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□Applicable√ Not applicable
In reporting period, the Company has no particular items defined as recurring profit (gain)/loss according to the lists of extraordinary
profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---
Extraordinary Profit/loss.
Chapter 4 Report of the Board of Directors
I. Overview
The effect of company product structure adjustment was obvious in 2014, the research and development capabilities continued to improve, JV cooperation continued to deepen, and the corporate image improved significantly. In terms of the operation effect, the company over fulfilled the annual business objectives and continued to consolidate the industry status; profit, sales revenue increased significantly, and maintained the status that the profit growth is higher than revenue growth, and the revenue growth is higher than the growth of sales volume.
Throughout the year, the company and its affiliated joint enterprises and the associated enterprises produced 2.63 million vehicles and sold out 2.54 million vehicles, increased by24.5% and20% on a year-on-year basis. Changan sold out 769,000 independent brand cars, up by39.4% on a year-on-year basis. In China's automobile market, the company has obtained about10.8% market shares, increased by1.2% on a year-on-year basis, and the sales continued to rank top 4 in China auto industry (data source: China Automobile Industry Association data).
II. Analysis of Main Business
1、Overview
The main business of the Company is the development, production and sales of vehicles and sedans. During the reporting period, the quality of theCompany’s operationg was improving and the ability of cash flow creation was enhancing.
The Company summary review of the progress of development strategy and operation plan discloured before during the reporting period.
There was no significant change in theCompany’s development strategy. During the reporting period, the Company completed the business indicators decided at the beginning of the reporting period by the board of directors well. The total sales volume of the automobiles was 2.54 million, which completed109.01% of the planed business indicators. The sales of the automobiles was 218.2 Billion Yuan (52.91 Billion Yuan from Consolidated Income Statement), which completed124.69% of the planed business indicators(129.37% of planned consolidated business indicators).
2、 Income
Unit: Ten Thousand Yuan
|||||
|-|-|-|-|
|Item|2014|2013(Restated)|Increase/decrease on ayear-on-year basis (%)|
|operating revenue|5,291,333|3,914,170|35.18%|
|Investment income|810,212|450,660|79.78%|
|Operating profit|717,652|292,767|145.13%|
|Non-operating income|40,167|29,049|38.28%|

Total profit 753,883 317,851 137.18%
|||||
|-|-|-|-|
|Net profit attributable to owners|756,108|336,859|124.46%|

 During the reporting period, the salse volume of automobiles was increasing, and the structure of the production was optimizing. The investment income from Changan Ford, a joint venture, increased significantly. The Company revenue, investment income, total profit and net profit attributable to owners increased sharply compared with the last reporting period. The non-operating income increased compared with the last reporting period, which was mainly due to the increase of the government grant.
Is the income from sales in kind greater than the service income?
√ Yes□No
Unit：One set
||||||
|-|-|-|-|-|
|||||Increase/decrease on a|
|Industry|Items|2014|2013||
|||||year-on-year basis (%)|
||Sales volume|2,544,055|2,120,023|20.00%|
||Production volume|2,627,456|2,110,301|24.51%|
|Automobile Industry|Stock volume|60,836|56,887||
||||9.64%|1.2 percentage points|
||Market share（%）|10.84%|||
|||||increased|

Note：The above sales volume, production volume and stock volme are consisitent with the date from the Company and its subsidiaries and JVs. The analysis over market share is based on the data from China Automobile Industry Association. Notes to the year-on-year change of the relevant data by over30%
□Applicable√ Not applicable
Significant orders in hand
□Applicable√ Not applicable
Significant change in or adjustment of the products or services in the reporting period:
□Applicable√ Not applicable
Main Customers
|||||
|-|-|-|-|
||Total sales amount to top 5 customers (RMB)||5,514,074,342.31|
|Proportion of sales to top 5 customers in the annual sales (%)||10.42%||

3、Cost
Unit: Ten Thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||||2014||2013(Restated)|||
|||||Ratio in||Ratio in|Increase/decrease|
|Industry||||operation||operation|on a year-on-year|
|classification||Item|Amount|cost (%)|Amount|cost (%)|basis (%)|
||Prodcut Sale||4,307,697|99.56%|3,227,989|99.42%|33.45%|
|Automobile||||||||
|Production|Outsourcing||18,886|0.44%|18,966|0.58%|-0.42%|

||||||||
|-|-|-|-|-|-|-|
||4,326,58|3|100%|3,246,956|100.00%|33.25%|
|Total|||||||

 Principal suppliers
||||
|-|-|-|
||Total purchase amount to top 5 suppliers (RMB)|6,531,887,905.10|
|Proportion of purchase to top 5 suppliers in the annual purchase (%)||15.10%|

4、Expenses
Unit: Ten Thousand Yuan
||||||||
|-|-|-|-|-|-|-|
|Item||2014||2013(Restated)||increase/decrease|
|Business tax and surcharges|206,434||126,711||62.92%||
|Operating expenses|435,717||355,756||22.48%||
|Financial expenses|6,607||7,454||-11.36%||
|Income tax expense|2,085||-15,293||-113.63%||

 During the reporting period, the increase of business tax and surcharges was due to the increase of consumption tax resulted from the growth of sales and the increased portion of cars charged with higher tax rate; the growth of sales led to the expansion of sales expenses; the increase of corporate income tax was due to the increase of net profit excluded investment gains, leading to the increase of current income tax expense.
5、Research and Development Expenditure
The Company research and development expenditure is classified as the expenditure on research phase and the expenditure on development phase, and research expenditures will be included in the current profits and losses. In 2014, the expenditure for research and development project of the Company was 2.012 Billion Yuan, accounting for revenue ratio of3.80%, of which 1.402 Billion Yuan for research expenditure, 0.610 Billion Yuan for development phase. In 2013, the expenditure for research and development project of the Company was 1.627 Billion Yuan, accounting for revenue ratio of4.16%, of which 1.112 Billion Yuan for research expenditure, 0.515 Billion Yuan for development phase.
6、Cash Flow
Unit: Ten Thousand Yuan
|||||
|-|-|-|-|
|Item|2014|2013(Restated)|Increase/decrease|
|net cash flows from operating activities|377,992|153,715|145.90%|
|net cash flows from investing activities|521,958|-222,270|-334.83%|
|net cash flows from financing activity|-357,799|74,375|-581.07%|
|Net increase in cash and cash equivalents|541,991|5,060|10611.28%|
|Cash and cash equivalents at end of year|936,285|394,294|137.46%|

Notes to the year-on-year change of the relevant data by over30%
□Applicable√ Not applicable
In 2014, the net cash flow generated from operating activities was 3.78 Billion Yuan, a year-on-year increase of 2.24 Billion Yuan, mainly resulting from the sales expansion; the total cash inflows from investing activities was 5.22 Billion Yuan, increased amounted to 7.44 Billion yuan compared with last year, mainly due to the significant increase of the investment; The outflow of the net cash flow generated from financing activities was 3.58 Billion Yuan, a year-on-year increase of 4.32 Billion Yuan, mainly resulting from the repayment of loans in 2014.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
√Applicable□Not applicable
As for the significant difference between cash flow from operating activities and net profit this year in the reporting period, refer to the 58th item “Supplemenmtary Information of the Cash Flow Statement” in the Financial Statements Note 5.
III、Composition
of Main Business
Unit: Ten Thousand Yuan
||||||||
|-|-|-|-|-|-|-|
|Classified by industry|||||||
|Industry/prodcut|Operating revenue||Operating cost||Gross profit rate||
||Amount|Increase/decrease on ayear-on-yearbasis (%)|Amount|Increase/decrease on ayear-on-yearbasis (%)|Rate（%）|Increase/decrease on ayear-on-year basis|
|AutomobileProduction|5,291,333|35.18%|4,326,583|33.25%|18.23%|1.19 percentagepoints increased|
|Classified by product|||||||
|1.Vehicles|5,270,226|35.38%|4,307,697|33.45%|18.26%|1.18 percentagepoints increased|
|Passenger Vehicle|3,345,546|66.10%|2,629,787|59.97%|21.39%|3.01 percentagepoints increased|
|Mini Vehicle|1,669,860|-0.24%|1,521,942|7.26%|8.86%|6.37 percentagepoints decreased|
|2.Outsourcing|21,107|-0.54%|18,886|-0.43%|10.52%|0.10 percentagepoints decreased|

IV、Assets
and liability analysis
1、The significant changes of the assets
Unit: Ten Thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Dec.31,2014||Dec.31,2013(Restated)|||YoY||
|||Ratio in||Ratio in total|Increase/de|||
|Item|||||||instructions|
|||total assets||assets|crease (%)|||
||Amount|(%)|Amount|（%）||||
||||||||maily resulting from the|
|Cash|969,308.35|13.91%|453,582.60|8.31%|5.60%|114%|sharply increase in profit|
||||||||from Changan Ford and|

|||||||||
|-|-|-|-|-|-|-|-|
||||||||the huge increase of the|
||||||||cash dividend|
||||||||maily resulting from the|
|Accounts|||||||increase of the Group's|
||75,887.62|1.09%|70,463.82|1.29%|-0.20%|8%||
|receivable|||||||sales during the reporting|
||||||||period.|
||||||||Due to the increase of the|
||||||||Group's sales and the|
|Inventories|657,218.65|9.43%|473,505.17|8.67%|0.76%|39%|materials and vehicles|
||||||||during the reporting|
||||||||period,|
|Long-term||||||||
||||||||Cash increased due to|
|equity|1,262,398.96|18.12%|1,235,767.25|22.63%|-4.51%|2%||
||||||||CAF’s dividend|
|investments||||||||
||||||||The development expense,|
||||||||qualified for the|
||287,896.52|4.13%|207,622.05|3.80%|0.33%|39%|conversion into intangible|
|Intangible|||||||asset, increased and the|
|assets|||||||increase f land use right.|
||||||||New fixed assets added|
||1,456,557.98|20.90%|1,437,299.25|26.32%|-5.42%|1%|and depreciation of fixed|
|Fixed assets|||||||assets|
|Construction|||||||Project completed and|
||127,399.70|1.83%|132,877.38|2.43%|-0.60%|-4%||
|in progress|||||||transfermed fixed assets|
|Notes|||||||Due to the increase of the|
||1,778,016.17|25.51%|1,127,221.23|20.64%|4.87%|58%||
|receivable|||||||Group's sales|

2、The significant changes of the liability
Unit: Ten Thousand Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Dec.31,2014||Dec.31,2013(Restated)|||YoY||
|||Ratio in|||Increase/|||
||||||||Instructions|
|Item||total||Ratio in total|decrease|||
|||assets||assets|(%)|||
||Amount|(%)|Amount|（%）||||
|||||||-94%|Mainly due to the repayment of|
|Short-term loans|9,000|0.13%|149,800.00|2.74%|-2.61%|||
||||||||laons|
||||||||Mainly due to the repayment of|
|Long-term loans|-|-|127,000.00|2.33%|-2.33%|100%||
||||||||laons|
|Notes payable|1,310,862.34|18.81%|957,765.47|17.54%|1.27%|37%|Due to the increase of the Group's|

|||||||||
|-|-|-|-|-|-|-|-|
||||||||sales,which driven purchased|
||||||||increased|
||||||||Due to the increase of the Group's|
|Accounts payable|1,303,879.37|18.71%|796,379.82|14.58%|4.13%|64%|sales,which driven purchased|
||||||||increased|
||||||||Due to the increase of the Group's|
|Advance payments|580,271.73|8.33%|426,028.27|7.80%|0.53%|36%||
||||||||sales|
||||||||Due to the increase of the Group's|
|Other current|||||||sales, and corresponding provision|
||292,189.90|4.19%|189,562.71|3.47%|0.72%|54%||
|liabilities|||||||of sales compensation and related|
||||||||freight increase|

3、Assets and liabilities measured by fair value
Unit: Ten ThousanYuan
|||||||
|-|-|-|-|-|-|
|||Gain/loss on fair|Cumulative fair|Impairment||
||Amount at year|||||
|Item||value change in the|value change|provisions in the|Amount at year end|
||beginning|||||
|||reporting period|recorded into equity|reporting period||
|Financial assets||||||
|Financial assets available||||||
||25,731.94||13,832.81||39,564.75|
|for sales||||||
|Subtotal of financial assets|25,731.94||13,832.81||39,564.75|
|Others||||||
|Ttoal|25,731.94||13,832.81||39,564.75|
|Financial liabilities||||||

4、Main Overseas Assets
□Applicable√Not applicable
V、Core Competence Analysis
The company is committed to improve the independent innovation ability, and build a continuously leading coreR&D ability, and build the core competence for the long-term development. During the reporting period, the company's core competitiveness improved further.
1. Solid progress on independent innovation
Changan CS75 surpassed all the vehicle brands from joint venture and independent brands, with the highest score of 59 in the five-star rating test of C-NCAP (safety performance test through new collision) and achieved the the most high score in C-NCAP history; Zhishang XT under harsh test of C-NCAP new collision rule passed the C-NCAP five-star safety evaluation by 53.3 points; the Company successfully held "The 1st Session of Changan Auto Show on New Technology" and published six technology strategies
of "energy saving, safety, fashion, intelligence, light weight, health and environmental protection" and the new technology research
and development process of CA-TDS so as to lead the future direction of technology development of Changan automobile. The
Company held "The 2nd Session of Technology Carnival", and displayed the first quality verification system (CA-TVS) of Chinese automobile brands, covering the reliability, driving performance, NVH, safety, electrical appliances, power and other 15 verification fields during the automobile development and including 357 vehicle tests, 289 matching tests, 994 systematic tests, and more than 3000 parts level test. "Changan automobile global collaborative innovation project" won the 2nd prize of national scientific and technological progress; "Changan P3 car platform R& D and industrialization" and "control method of electric vehicles" respectively won the 1st prize of China automobile industry science and technology award, the only to grab the 1st prize in the automobile industry.
2. Rapid increase of product market competence
Under the concreteR&D capability, the company successfully launched many self developed models such asCS75, New Ben-ben, Yuexiang V7, and the products gained the substantial popularity from the market. CS75 ranked top in terms ofusers’ attraction for 8 consecutive months in a row; the monthly sales of EADO, CS35 and CS75 exceeded 10,000 sets; New Ben-ben acquired the champion of 2014 A0-class car in terms of after-sale service satisfaction; Taurus won the champion of J.D. Power forcustomers’ satisfaction over quality; CS75 was titled with" the most popular annual new car -city SUV", "the annual independent SUV" and the "annual consumption models" and many other awards.
3. The ability to further enhance the brand
Changan released the passenger car brand slogan "Go forward, closer to you", and obtained the exclusive title on the Show of "Excellent Chinese" by sponsorship, the winner of the domestic variety show with the audience coverage of 1 billion. Changan greatly enhance the brand image. Changan Brand cars have appeared in Frankfurt auto show, Russia show, and Iran auto show to display the charm of the Chinese brands to the world. The Central Propaganda Department, the SASAC and the Chongqing Government subsequently organized the mainstream media, enterprises to visit Changan, publicize Changan, learn about Changan. Changan received the visit of more than 300 thousand people from all walks of life. By the use of micro-blog, WeChat, mobile phone, newspaper and other new media, Changan carried out the 5W communication with the audience coverage of about 14 million people, close to the number of audiences from CCTV news broadcast, and established its leading brand image in China. The image of "Rich configuration", and "high cost-quality ratio" as Changan passenger car surpassed the average level of the industry, and has formed the reputation of "fashion, safety, and energy saving" in the minds of users.
VI、Analysis
of Investment
1、External Equity Investment
（1）External investment
√Applicable□Not applicable
||||
|-|-|-|
|External investment|||
|Investment Amount in 2014（RMB）|Investment Amount in 2013（RMB）|Variance rate|
|439,980,000.00|2,007,424,600.00|-78.10%|
|Particulars of investees|||
|Companies|Principal business|Proportion in the investees’ equity (%)|
||Production and sales of vehicles and car||
|Hefei Changan Automobile Co., Ltd||100.00%|
||parts||

（2）Equity-holdings in financial enterprises
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Initial|Opening|Opening|Closing|Closing||Gain/loss in|||
||||||||Closing book||||
|Company|Company|i nvestment|e quity|equity|equity|equity||the reporting|Accountin|Equity|
||||||||value (RMB||||
|name|variety|cost (RMB|H oldings|holding ratio|holdings|Holdings||period (RMB|g title|source|
||||||||Yuan)||||
|||Yuan)|(share)|(%)|(share)|（%）||Yuan)|||
||||||||||Tradable||
|Southwest|Securities|||||||||Initial|
|||50,000,000|17,750,000|0.76%|17,750,000|0.76%|395,647,500|2,130,000|financial||
|Securities|Firm|||||||||investment|
||||||||||assets||
||||||||||Tradable||
|||||||||||The 2011|
||||||||||financial||
|||||||||||merger of|
|Hua Xia|Commerci||||||||assets||
|||8,149,714|9,458,800|0.11%|-|-|-|77,020,692||Changan|
|Bank|al bank||||||||Financial||
|||||||||||bus|
||||||||||assets for||
|||||||||||investment|
||||||||||trade||
|Financial|||||||||||
|Co. of|||||||||Long term||
|China South|||||||||equity|Initial|
||Other|80,000,000||5.33%||5.33%|80,000,000|31,252,436|||
|Industries|||||||||investment|investment|
|Group|||||||||||
|Corporation|||||||||||
|||138,149,71|||||||||
|Total|||||||475,647,500|110,403,128|||
|||4|||||||||

（3）Securities investments
□Applicable√ Not applicable
There’s no securities investment during the reporting period
（4）Holding of the equity in other Listing Company
□Applicable√ Not applicable
There’s no holding of the equity in other Listing Company during the reporting period.
2、Entrusted finance, derivative investments and entrusted loans
There’s no entrusted finance, derivative investments or entrusted loans during the reporting period
3、Use of raised funds
□Applicable√ Not applicable
There’s no use of raised funds during the reporting period.
4、(1) Analysis of main holding companies and equity companies
Basic information of main subsidiary companies and equity companies
Unit: ten thousand yuan
||||||||
|-|-|-|-|-|-|-|
|Name|Registeredcapital|Equity held|Main businesses|Total assets( tenthousand yuan)|Main operatingincome(ten thousandyuan)|Net profit(ten thousand yuan)|
|Hebei Changan AutomobileCo., Ltd.|46,469|94.07%|Produce and sell auto and parts|147,365|457,106|-13,576|
|Nanjing Changan AutomobileCo., Ltd.|60,181|82.47%|Produce and sell auto and parts|95,780|294,515|-23,168|
|Hefei Changan Automobile|||||||
||77,500|100%|Produce and sell auto and parts|100,769|61,642|-22,511|
|Co., Ltd.|||||||
|Baoding Changan Bus|||||||
||3,000|100%|Produce and sell auto and parts|235,202|265,247|310|
|Manufacture Co., Ltd.|||||||
|Changan Ford Motor Co., Ltd|24,100 USD|50%|Produce and sell auto and parts|4,145,390|10,635,390|1,441,286|
|Changan Mazda Co., Ltd|11,097 USD|50%|Produce and sell auto and parts|1,098,733|1,902,965|101,461|
|Changan Ford Mazda Engine|||||||
||20,996 USD|50%|Produce and sell engine parts|276,713|375,523|24,918|
|Co., Ltd|||||||
|Chongqing Changan Suzuki|||||||
||19,000 USD|50%|Produce and sell auto and parts|721,220|1,047,189|2,278|
|Automobile Co., Ltd|||||||
|Changan PSA Automobiles|||||||
||400,000|50%|Produce and sell auto and parts|964,134|433,352|-32,302|
|Co.,Ltd|||||||
|JMC Holding Co., Ltd.|200,000|50%|Produce and sell auto and parts|705,577|325,970|73,033|
|Chongqing Changan Auto.sales subsidiary companies|850|100%|Produce and sell auto and parts|11,288|79,495|571|
|Chongqing Changan Auto.International Sale ServiceCompany|1,376|95%|car export, import and exportagent|23,634|91,764|-9,893|
|Chongqing Chang AutomobileSales Co.,Ltd.|4,850|100%|Produce and sell auto and parts|4,911|420|0.4|
|Chongqing Changan Auto.Customer Service Co., Ltd.|3,000|100%|roduce and sell auto and parts|43,551|90,103|6,301|
|Chongqing Changan NewEngergy Automobile Co., Ltd.|2,900|65%|NEV production and sales|7,149|8,940|62|
|Chongqing Changan SpecialAutomobile Sales Co., Ltd.|500|50%|Special vehicle and spare partssales, car maintenance|23,401|65,100|1,222|

Performance statement of subsidiary or shareholding company which have a significant impact on business
performance of company
unit: ten thousand yuan
|||||
|-|-|-|-|
|Name|Net Asset at the end of 2014|Net Asset at the end of 2013|Change situation（%）|
|Changan Ford Automobile Co., Ltd.|1,441,286|821,782|75.38%|
|JMC Holding Co., Ltd.|73,033|52,690|38.61%|
|Changan Ford Mazda Engine Co., Ltd||24,387||
|Nanjing Changan Automobile Co., Ltd.||-31,411||
|Changan Mazda Co., Ltd|101,461|9,995|915.12%|

 During the reporting period, the sales from JV ChanganFord，ChanganMazda，JMC Holding increased significantly, which ledto the huge rise of the net profit from JVs on a y-o-y basis.
5、Major projects with non-raised capital investment
Please refer to Notes to Financial Statement 15” Construction in progress”
VII、
Special Purpose Entity under the company control
The company does not have special purpose entity.
VIII、The company's future development prospect
1. Industry competition pattern and trend of development
In 2015, under the backdrop of the slowdown of Chinese economy, the growth rate is predicted to drop to7%. Economy will enter a critical period of transition with a "new normal", manifested as the change from the high speed growth into medium and high speed growth; with the continuous optimization and upgrading of economic structure, theconsumers’ demand in the third industry gradually become dominant while the gap between urban and rural areas is narrowed with more residents income and the development fruits favoring wider range of people; the driving power for the economic development shifts from elements-driven and investment-driven into innovation drive. From the industry situation, the automobile industry exhibits the trend of experiencing consumption with such features as the brand, fashion, quality, and personalization; products and technology presents five characteristics such as the experience, electrification, intelligence, lightweight, and platform. The business model of the automobile industry, under the support of the mobile Internet and large data, transfers from the traditional value chain into the competition in ecological chain, which will promote the new revolution of the business model and accelerate the shift from "the traditional manufacturers" to "manufacturing service providers". The government policies will encourage the development of independent vehicles, independent innovation, energy conservation and new energy vehicles; the protection over consumers' rights and interests will be enhanced.It’s expected in 2015 the growth rate of China auto market is7%, sales about 25.13 million vehicles.
2. Development strategy of the Company
Seize the strategic opportunity period of next ten years, especially the next 3-5 years, and realize the rapid, healthy and sustainable development; accelerate the development of independent business, strengthen the construction of brand, products and technology and system, and build the foundation of the world first-class enterprise; adhere to the development by "two legs", further strengthen the
joint venture cooperation, and innovate the road of joint development; take new energy technology as a breakthrough point and
regard the information technology as an innovative means to speed up the Changan's transference from the traditional vehicles to the
new energy vehicles, and from the traditional manufacturing enterprise to the manufacturing service enterprise; adhere to the
principle of marking Chinese market as the main body and actively exploring the overseas markets; promote the deepening of the reform vigorously, and continuously enhance the development momentum and vitality.
3. The new energy strategy
The next decade, Changan Automobile will increase investment, given strong protection from development, technology, supply, operations four levels to Chongqing, Beijing R& D base for the center to co-ordinate the US and UK R& D center, gathered global superior resources, create new energy products. Pure electric drive as the main line, the simultaneous development of plug-in hybrid and pure electric two technology platforms, creating a "powerful, energy-saving, high-tech fashion," the classic products, and strive through the years, the introduction of 34 products, cumulative sales reached 200 million, becoming the advanced international and domestic first-class new energy auto companies.
4. Business plan
In 2015 the aim of the board of directors of the company is: strive to produce and sell more than RMB2.9 million cars, and achieve sales revenue over 250 billion yuan (including100% revenue of JVs) and the consolidated revenue about 59 billion yuan. In oder to realize the above objectives, this year the company will reform and innovate with "reform, brand, quality, system" as the key points, comprehensively fulfill various operating objectives from the superior, and focus on the following work: Firstly, resolutely conduct the marketing campaign to ensure the smooth realization of sales targets; secondly, upgrade the product quality and drive Changan move towards the world-class; thirdly, maintain a good relation with customers and offer enjoyable experience to greatly enhance the quality of service; fourthly, make innovations on brand activities, and continue to improve "the young, stylish, dynamic, fast-growing" brand image of Changan; fifthly, strengthen the operational control and level up the investment analysis; sixthly, deepen the reform and expand the business to create new profit growth point for Changan; seventhly, insist on the leading technology and the products' quality to enhance the developing efficiency over the third-generation products; eighthly, possess the insight into customer demand and pay close attention to product planning to enhance the competitiveness of products; ninthly, firmly execute the cost control and optimize the resource allocation to enhance the capability of value creation; tenthly, ruthless supervise the procurement management and coordinate the resources to enhance the competitiveness of the supply chain; eleventhly, strengthen safety awareness and the security control, and resolutely put an end to the accident liability; twelfthly, strengthen the marketing synergies, and continue to enhance the level of manufacturing logistics; thirteenthly, deepen the strategic coordination and refine the operating management to promote the rapid development of the joint venture; fourteenthly, improve efficiency towards a standard class, and efforts to build a first-class management system; fifteenthly, enhance the organizational vitality to stimulate the full potential of all the staff and conduct the in-depth implementation of the HR leadership strategy; sixthly, play the advantages of party building and unite the forces of all staff to promote the full development of the company; seventeenthly, strengthen the implementation of clean government accountability and create a clean working atmosphere.
5. Company capital requirement and use plan of 2015
To realize corporate strategic objectives, the company capital expenditure is expected to be RMB8.338 billion yuan in 2015, the investment on fixed assets is RMB4.9 billion yuan, the equity investment is RMB3.438 million yuan. Investment in fixed assets is mainly in productivity construction, upgrade of product structure and research and development ability construction of Yuzui base, Beijing factory and YuBei factory, among which the extension project is RMB3.90 billion yuan, accounting for79.6%. Equityinvestment’s mainly projects of overseas research and development investment and extension projects of new business. The company will, according to the implementation and plan of new projects and related provisions of the listing rules, perform the approval procedures of the corresponding specific project and disclosure them. Capital requirements will combine project progress situation, the company's business and financing environment, the company will study and formulate various channels of financing and capital use plans, improve the service efficiency of funds and reduce the capital cost.
6. Potential risks
In the face of these changes, in order to gain a competitive advantage, the company can only conform to the development trend of the industry, take the initiative to reform, seize the opportunity, speed up transformation and upgrading and structural adjustment.. In
2015, the company will be faced with the risks from the market, policies and regulations, the development of independent brands and other risks as follows:
(1) Market : with the market slowdown, the future development of space is narrowed;
(2) Policy and regulation risk: the tightening of the policies and regulations brings a series of challenges to the technology and cost.; (3) The development of independent brands: lack of the investment in independent brands, and the company is difficult to explore the high-level market and faces the risk of downward suppression from joint venture;
(4) Overseas development: the insufficient support from internal system and the environmental uncertainty of overseas development will bring great challenges to the overseas strategy;
(5) New technology, new energy development risk: the uncertainty of the future path for new energy and the bottleneck of new energy technology is the hugest risk for the development of new energy;
(6) Institutional mechanism risk: the mechanism and system does not adapt to the development of the company and the company should further improve the efficiency and vigor.
IX、The
BOD explains for the accounting firm in this report period "non-standard audit report"
□ Available√ Not available
X、Compared
with the annual financial report, Note accounting policies, accounting estimates and accounting methods to change the situation
Please refer to the 2nd item in financial statements Note5 “Adoption of revised standards/ new standards.”
XI、Corrections
to the retrospective restatement situation shows significant accounting errors occurring in the report period
□ Available√ Not available
XII、Explanations
to those changes in the scope of consolidated financial statements compared with the last annual financial report
√Available□ Not available
On April 30, 2014, the company completed the acquisition of100% equity and business registration formalities over the equity settlement of Hefei Changan Automobile Limited company held by Changan Automobile Group. Since April 30, 2014, Hefei Changan Automobile Limited company has been incorporated in consolidated financial statements of Chongqing Changan Automobile Co. Ltd.. In December, 2014 the Company set up a wholly owned subsidiary of Changan Automobile Russian Co. Ltd. and Changan Brazil Holdings Co., Ltd. Since December 2014, Changan Automobile Russian Co. Ltd. and Changan Brazil Holdings Co., Ltd have been incorporated in consolidated financial statements of Chongqing Changan Automobile Co. Ltd.
XIII、The
distribution of company profits and dividends
Profit distribution policy during the reporting period, especially making, execution or adjustment of cash dividend policy
During report period, according to the China Securities Regulatory Commission requirements “Notice on further implementing the relevant matters listing Corporation cash dividends” (the[2012]37), combined with the actual situation of the company, on "about
dividend provisions in the articles of association of the company" was further refined, the principle of distribution of profits can be forms of dividend distribution, diameter, form, cash dividend, stock dividend ratio conditions and conditions, plan and review procedures, implementation of the program, allocation policy and decision-making procedures etc. strengthen the independent director in the profit distribution plan decision, role of supervision policy in the adjustment process, enhance the system guarantee of investor dividends returns.
Company during report period profit distribution plan and capital fund increasing capital plans in accordance with the relevant provisions of the articles of association of the company
|||
|-|-|
|Special explanation for cash dividend policy||
|Whether compliance with the regulation stated in the articles of association and||
||Yes|
|requirement for resolution of shareholders meeting||
|Whether the distribution standard and proportion is clear|Yes|
|Whether the related decision procedure and system is complete|Yes|
|Whether the independent directors work effecitve|Yes|
|Whether the minority shareholders have ample opportunity to express their advise and||
||Yes|
|appeal and their legal right and interests is suffiently protected||
|Whether the adjustment or change on cash dividend policy meets the requirement and||
||Yes|
|procedure is compliance and tranparent||

The company nearly 3 years (including the report period) the profit distribution plan or program and capital fund increasing captial plans or schemes
The 2012 annual profit distribution plan is: Based on the existing total share capital of 4,662,886,108 shares as the base, to all shareholders 10 per share cash delivery 0.50 yuan (including tax)
The 2013 annual profit distribution plan is: Based on the existing total share capital of 4,662,886,108 shares as the base, to all shareholders 10 per share cash delivery 1 yuan (including tax)
The 2014 annual profit distribution plan is : Based on the existing total share capital of 4,662,886,108 shares as the base, to all shareholders 10 per share cash delivery 2.50 yuan (including tax)
Company cash dividends in the past three years table. unit:Yuan
|||||
|-|-|-|-|
|||The annual consolidated|Ratio of consolidated|
||The cash dividend amount|statements profit attributable|statements attributable to|
|The annual dividend||||
||(including tax)|to shareholders of the listing|shareholders of the listing|
|||Corporation's net profit|Corporation's net profit（%）|
|2014|1,165,721,527.00|7,561,081,585.81|15.42%|
|2013|466,288,610.80|3,368,591,105.89|13.30%|
|2012|233,144,305.40|1,446,409,591.28|16.12%|

XIV、Preplan for profit distribution and transferring capital reserve into share capital for the report period
|||
|-|-|
|Number Of Bonus Shares Per 10 Common Shares|0|
|Number Of Dividends (Taxes Included) Per 10||
||2.50|
|Common Shares||
|Number of shares as the radix of preplan|4,662,886,108|
|Total cashl dividends (Taxes Included)|1,165,721,527.00|
|Distributable dividends (Yuan)|17,744,494,650.50|
|The proportion of total cash dividends to the total||
||100%|
|distributed profit||
|Cash dividend policy：||
|Others||
|The specific explanation of the preplan of the profit distribution and transferring capital reserve into share capital||
|According to the audit of Ernst&Young Hua Ming (special general partnership), the annual net profit attributable to the parent||
|company in 2014 is 8,081,933,672.79 yuan, coupled with the undistributed profits of 10,645,127,982.64 yuan at the year||
|beginning, minus the allocated cash dividend 467,396,927.46 yuan during the reporting period, namely the distributable profits to||
|shareholders of 18,259,664,727.97 yuan, minus the annual statutory surplus reserve of 515,170,077.47 yuan. Thus,at the end of||
|2014 the undistributed profit is 17,744,494,650.50 yuan. At the end of 2014, the monetary fund balance of the parent company is||
|8,828,152,864.35 yuan.||
|The company's annual profit distribution plan in 2014 is: taking the total shares as of Dec. 31, 2014 as the radix, sending||
|cash dividends of RMB 2.50 Yuan per every 10 shares to all shareholders, namely the total distributed cash is 1,165,721,527.00||
|Yuan(tax included) .||

XV、Social
responsibility
The 2014 annual social responsibility report released in electronic form, Can land our company website to download http://www.changan.com.cn/ or www.cninfo.com.cn.
XVI、Statement
of such activities as reception, research, communication, interview in the reporting period
||||||
|-|-|-|-|-|
|||||Content discussed and|
|Date|Location|manner|Reception object||
|||||material offered|
|2014.1.3|Meeting Room,Changan Headquarters|On-SiteSurvey|Soochow Asset Management Co.|Automotive IndustryDevelopment and Company’sBusiness|
|2014.1.9|Meeting Room,Changan Headquarters|On-SiteSurvey|Huaxi Securities、VenusInvestment|Automotive IndustryDevelopment and Company’sBusiness|

||||||
|-|-|-|-|-|
|2014.1.10|Meeting Room,Changan Headquarters|On-SiteSurvey|Minsheng securities、MinshengRoyal Fund Management Co.、ABC Life Insurance Co.|Automotive IndustryDevelopment and Company’sBusiness|
|2014.1.13|Meeting Room,Changan Headquarters|On-SiteSurvey|Barclays Capital Asia Limited|Automotive IndustryDevelopment and Company’sBusiness|
|2014.1.15|Meeting Room,Changan Headquarters|On-SiteSurvey|Macquarie Securities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.1.16|Meeting Room,Changan Headquarters|On-SiteSurvey|BOC International (China)Limited|Automotive IndustryDevelopment and Company’sBusiness|
|2014.1.17|Meeting Room,Changan Headquarters|On-SiteSurvey|Deutsche Bank、Ecofin、AdvisoryCompany for SAIF Funds、Valuestar asset management、BNPParibas|Automotive IndustryDevelopment and Company’sBusiness|
|2014.2.17|Meeting Room,Changan Headquarters|On-SiteSurvey|J.P.Morgan Asset Management|Automotive IndustryDevelopment and Company’sBusiness|
|2014.2.18|Meeting Room,Changan Headquarters|On-SiteSurvey|Amundi Capital Management、Logan Circle CapitalManagement 、 Shell CapitalManagement、Fidelity Funds、Wellington Capital Management、Barclays Bank|Automotive IndustryDevelopment and Company’sBusiness|
|2014.2.26|Meeting Room,Changan Headquarters|On-SiteSurvey|Harvest Fund、China SecuritiesCo.|Automotive IndustryDevelopment and Company’sBusiness|
|2014.2.26|Meeting Room,Changan Headquarters|On-SiteSurvey|South China Growth Fund 、Khazanah Nasional|Automotive IndustryDevelopment and Company’sBusiness|
|2014.3.4|Meeting Room,Changan Headquarters|On-SiteSurvey|Hongyuan Securities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.3.5|Meeting Room,Changan Headquarters|On-SiteSurvey|Guosen Securities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.3.6|Meeting Room,Changan Headquarters|On-SiteSurvey|Northeast Securities|Automotive IndustryDevelopment and Company’sBusiness|

||||||
|-|-|-|-|-|
|2014.3.6|Meeting Room,Changan Headquarters|On-SiteSurvey|Standard Chartered Bank 、Macquarie Securities 、DiscoveryCapital Management|Automotive IndustryDevelopment and Company’sBusiness|
|2014.4.30|Meeting Room,Changan Headquarters|telephoneconference|China Securities Co.|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.5|Meeting Room,Changan Headquarters|On-SiteSurvey|Morgan Stanley、Allianz GlobalInvestors|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.8|Meeting Room,Changan Headquarters|On-SiteSurvey|Institutional investors|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.13|Meeting Room,Changan Headquarters|On-SiteSurvey|Lazard|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.13|Meeting Room,Changan Headquarters|On-SiteSurvey|South China Growth Fund 、Guoyuan Consulting Service、Hofan Capital Management HKLimited、Fullgoal Fund|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.14|Meeting Room,Changan Headquarters|On-SiteSurvey|Guangfa Securities、Harvest Fund|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.15|Meeting Room,Changan Headquarters|On-SiteSurvey|Venus Investment|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.16|Meeting Room,Changan Headquarters|On-SiteSurvey|UBS、Wellington Management|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.19|Meeting Room,Changan Headquarters|On-SiteSurvey|Bank of America Merrill Lynch、Ontario Teachers Pension Plan|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.21|Meeting Room,Changan Headquarters|On-SiteSurvey|Macquarie Securities、Fuh HwaSecurities、Schroders IM、MartinCurrie IM、Sanders Capital|Automotive IndustryDevelopment and Company’sBusiness|
|2014.5.21|Meeting Room,Changan Headquarters|On-SiteSurvey|E Fund Management、AnbangAsset Management、China GalaxySecurities 、 BOCOM 、 ChinaInternational Fund Management、Sinosafe Insurance 、 HuashangFund、Nanjing Securities|Automotive IndustryDevelopment and Company’sBusiness|

||||||
|-|-|-|-|-|
|2014.5.22|Meeting Room,Changan Headquarters|On-SiteSurvey|UBS|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.3|Meeting Room,Changan Headquarters|On-SiteSurvey|Sanford C.Bernstein、OCH-ZIFFCapital Management 、MaverickCapital、Value Partners、NorgesBank|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.6|Meeting Room,Changan Headquarters|On-SiteSurvey|Industrial Securities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.9|Meeting Room,Changan Headquarters|On-SiteSurvey|KGI Securities 、 CathaySecurities 、Taiwan and GreatChina Equity Fund Manager|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.17|Meeting Room,Changan Headquarters|On-SiteSurvey|CITIC Securities、Polaris CapitalManagement,LLC|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.20|Meeting Room,Changan Headquarters|On-SiteSurvey|Standard Chartered Bank(HongKong) Limited 、 FranklinTempleton Investments|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.24|Meeting Room,Changan Headquarters|On-SiteSurvey|Cephei Investments|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.25|Meeting Room,Changan Headquarters|On-SiteSurvey|Cambridge Global AssetManagement|Automotive IndustryDevelopment and Company’sBusiness|
|2014.6.27|Meeting Room,Changan Headquarters|On-SiteSurvey|Matthews International CapitalManagement, LLC|Automotive IndustryDevelopment and Company’sBusiness|
|2014.7.16|Meeting Room,Changan Headquarters|On-SiteSurvey|Guosen Securities、Wanjia Asset、Baoying Fund、Shenzhen MinsenInvestment、CITICPE、DachengFund Management 、 XingtaiCapital Management Limited|Automotive IndustryDevelopment and Company’sBusiness|
|2014.7.17|Meeting Room,Changan Headquarters|On-SiteSurvey|CITIC Securities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.7.24|Meeting Room,Changan Headquarters|On-SiteSurvey|Guotai Asset ManagementCo.,Ltd.|Automotive IndustryDevelopment and Company’sBusiness|
|2014.9.5|Meeting Room,|On-Site|Haitong Securities Co.|Automotive Industry|

||||||
|-|-|-|-|-|
||Changan Headquarters|Survey||Development and Company’sBusiness|
|2014.9.15|Meeting Room,Changan Headquarters|On-SiteSurvey|China Securities Co.|Automotive IndustryDevelopment and Company’sBusiness|
|2014.9.16|Meeting Room,Changan Headquarters|On-SiteSurvey|China Asset Management 、Fullgoal Fund|Automotive IndustryDevelopment and Company’sBusiness|
|2014.9.16|Meeting Room,Changan Headquarters|On-SiteSurvey|China International CapitalCorporation Limited、IndustrialSecurities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.9.19|Meeting Room,Changan Headquarters|On-SiteSurvey|J Capital Research|Automotive IndustryDevelopment and Company’sBusiness|
|2014.9.19|Meeting Room,Changan Headquarters|On-SiteSurvey|BNP Paribas Corporate & Investment Banking|Automotive IndustryDevelopment and Company’sBusiness|
|2014.9.22|Meeting Room,Changan Headquarters|On-SiteSurvey|Binyuan Capital|Automotive IndustryDevelopment and Company’sBusiness|
|2014.9.24|Meeting Room,Changan Headquarters|On-SiteSurvey|BNP Paribas Securities (Asia)Limited、JP Morgan Asset Management|Automotive IndustryDevelopment and Company’sBusiness|
|2014.11.4|Meeting Room,Changan Headquarters|On-SiteSurvey|Bank of America Merrill Lynch、3W Fund Management、Beijing Dingtian Investment Management、Worldwide Investment、Pinpoint Investment ConsultingLimited、TT Investment(HongKong)、QVT Financial LP、Janchor Partners Limited|Automotive IndustryDevelopment and Company’sBusiness|

|||||||
|-|-|-|-|-|-|
|2014.11.10|Meeting Room,Changan Headquarters|On-SiteSurvey||Blackrock Global Investors|Automotive IndustryDevelopment and Company’sBusiness|
|2014.11.11|Meeting Room,Changan Headquarters|On-SiteSurvey||Nikko Asset Management HongKong Limited|Automotive IndustryDevelopment and Company’sBusiness|
|2014.11.13|Meeting Room,Changan Headquarters|On-SiteSurvey||BOC International (China) Limited、ICBC Credit Suisse AssetManagement|Automotive IndustryDevelopment and Company’sBusiness|
|2014.11.14|Meeting Room,Changan Headquarters|On-SiteSurvey||Credit Suisse|Automotive IndustryDevelopment and Company’sBusiness|
|2014.11.26|Meeting Room,Changan Headquarters|On-SiteSurvey||GIC Asset Management PrivateLimited、Deutsche Bank|Automotive IndustryDevelopment and Company’sBusiness|
|2014.11.26|Meeting Room,Changan Headquarters|On-SiteSurvey||Yinhua Fund Management Co.,LTD.、Southwest Securities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.12.2|Meeting Room,Changan Headquarters|On-SiteSurvey||Mitsubishi UFJ Securities|Automotive IndustryDevelopment and Company’sBusiness|
|2014.12.9|Meeting Room,Changan Headquarters|On-SiteSurvey||China Merchants Fund Management Co.,LTD.、Southwest Securities|Automotive IndustryDevelopment and Company’sBusiness|
|Reception times|||55|||
|Number of the vist from institutional investors|||168|||
|Number of the individual|||0|||
|Number of other entity|||0|||
|Did the company disclose, bleak anysignifcant||||||
||||No|||
|and not publicizedinformation||||||

Chapter 5 Important Matters
I、There are no major litigations , arbitrations, and media questioned during the reporting year.
II、During the reporting period, no occurrence of media questioning.
III、During the reporting period, no occurrence of the controlling shareholder and its related parties not occupy the funds of the company
IV、No occurrence of bankruptcy and reorganization matters during the reporting periodV、Asset transactions
1、Acquisition of assets
|||||||||
|-|-|-|-|-|-|-|-|
||||||Relationship and|||
|The dealing||||||||
|||The|||counterparty|||
|party or the|Acquired by|||Whether the||The date||
|||transaction|||(for related|||
|ultimate|or into||Status|related||of|Disclosure index|
|||price (ten|||party|||
|controlling|assets|||transactions||disclosure||
|||thousand)|||transactions|||
|party||||||||
||||||situation|||
||||||||The detail information is|
||||On April 30, 2014, the||||on “China Securities|
||||company completed||||News "," Securities|
||Acquisition||the acquisition of||||Times "," Hongkong|
||of 100%||100% equity and||||daily and|
|China||||||||
||stockholders||business registration||||"www.cninfo.com.cn|
|Changan||||||||
||of Hefei||formalities over the||majority|30|concerning acquisition|
|automobile||43,998||Yes||||
||Changan||equity settlement of||shareholder|Apr.,2014|of Hefei Changan|
|group||||||||
||Automobile||Hefei Changan||||Automobile Co., Ltd|
|Co.Ltd||||||||
||Limited||Automobile Limited||||100% stockholder's|
||company||company held by||||rights special connected|
||||Changan Automobile||||transaction|
||||Group...||||announcement"|
||||||||(Bulletin No. 2014-32)|

2、sales of assets
No
3、Enterprise merger
Hefei Changan Automobile Limited company, Changan Automobile Russian Co. Ltd. and Changan Brazil Holdings Co., Ltd have
been incorporated in consolidated financial statements of Chongqing Changan Automobile Co. Ltd this year.
VI、The
implementation and the effect of corporate equity incentive
□Available√ Not available
VII、Significant
related party transactions
1、Related party transactions related to daily operation
For the detail, refer to Note 10 of the consolidated financial statements.
2、Asset acquisition, sale transaction
The content on March 4th 2014 in the "Chinese Securities News", "Securities Times", "Hongkong daily" and the huge influx of information network http://www.cninfo.com.cn published "on the acquisition of Hefei Changan Automobile Co., Ltd100% equity transactions associated with progress announcement" (Bulletin No. 2014-32).
3、Joint investment of significant related party transactions
□Available√ Not available
4、Related credits and liabilities
□Available√ Not available
The existence of non-operating related credits and liabilities
5、Other significant related party transactions
Web Query disclose interim report on significant related party transactions
||||
|-|-|-|
||Temporary disclosure|Temporary disclosure notice|
|Interim announcement name|||
||notice date|the name of the web site|
|On the China South Group finance to provide financial services for the|||
||2014.3.04|http://www.cninfo.com.cn|
|company's related party transactions notice|||
|On the China South Group finance to provide financial services for the|||
||2014.4.17|http://www.cninfo.com.cn|
|company's related party transactions notice|||
|Regardingon the development of trade finance transactions associated with|||
||2014.4.17|http://www.cninfo.com.cn|
|the announcement of Fortis|||
|Prediction of 2014 daily related transactions amount notice.|2014.4.17|http://www.cninfo.com.cn|
|Concerning 2014 increase of daily related transactions amount notice.|2014.10.31|http://www.cninfo.com.cn|

VIII、Significant
contract and its implementation
1、Trusteeship, contracting, leasing items
（1）Trusteeship
√Applicable□Non-applicable
During report period, the company has no significant trusteeship.
（2）Contract
√Applicable□Non-applicable
During report period, the company has no major contract.
（3）Leasing
√Applicable□Non-applicable
During the reporting period, the company did not produce significant leasing matters.
2、Guarantee situation
□Applicable√non-applicable
During the reporting period, the company has not guarantee matters.
3、Other important contracts
□Applicable√non-applicable
During the reporting period, the company did not have other important contracts.
4、Other important RPT transactions
√Applicable□non-applicable
Please refer to Note 10 in the financial statements of “RPT relations and its transactions”.
IV、Commitments
fulfillment condition
1、The company or the shareholders holding5% or more shareholders during the reporting period or lasting to the report period commitments
|||||||
|-|-|-|-|-|-|
|||||period||
||Commitment||Commitment|for||
|commitments||Commitment content|||Performance|
||entity||time|commitm||
|||||ent||
|||1.Will abide by the laws, regulations and|||As of the end of the reporting period,|
|||rules, to perform the legal obligations.2.|||CCAG, the Company’s shareholder|
|||Held by the original non-tradable shares|||with share selling restrictions, held|
|||from obtaining the right to list and trade|||373,358,342 shares with selling|
|||date, At least 24 months is not publicly|||restrictions, which will be lifted after|
|||traded or transferred, The 24 months after|||the implementation of management|
|||the expiration of the term of, Non-tradable|||share incentive plan according to the|
|The commitments|China|||||
|||shareholders stock exchange through the|May, 2006||commitments of shareholding|
|of stock reform|Changan|||||
|||sale of shares, The sale of shares of the|||reform. During the reporting period,|
|||company accounted for the proportion of|||according to CCAG’s document “A|
|||the total number of within 12 months and|||Supplementary Explanation to|
|||not more than five percent, In 24 months|||Participating in the Share Split|
|||of no more than ten percent,3. Company in|||Reform of Chongqing Changan|
|||the shares changed after the completion of|||Automobile Co., Ltd.”, the Company|
|||According to the national related|||confirmed that it will implement the|

|||||||
|-|-|-|-|-|-|
|||management systems and methods for|||management share incentive plan|
|||implementing the management equity|||before June 30, 2016, according to|
|||incentive plan|||relevant national regulations and|
||||||measures.|
|||In order to avoid and eventually solve the||||
|||possible competition or potential||||
|||competitors, Better maintain the interests||||
|||of investors, the company controlling||||
||||||The Harbin Hf Automobile Industry|
|||shareholder China Changan commitment:||||
|Other small|||||Group Co at present is still running|
||China|In two consecutive years profit of Harbin|September,|||
|shareholders|||||at a loss, The conditions have not yet|
||Changan|Hf Automobile Industry Group Co, With|2010|||
|commitment|||||reached the profitable for two|
|||the continuous development ability and||||
||||||consecutive years.|
|||management level is improved||||
|||significantly under the condition of,||||
|||Proposed that enterprises into the||||
|||company.||||
|||If the Changan Peugeot Citroen in||||
||||||In 2014, Changan Peugeot Citroen|
|||2013 for listing Corporation contributio||||
||||||for the company contribution to|
|||n to investment income lower than -12||||
||||||investment income of RMB -16,151|
|Other small||500.,(ten thousand Yuan),||||
||China||December,||ten thousand yuan, Not less than|
|shareholders||2014 investment listing Corporation||2 Years||
||Changan||2012||Chinese Changan promised lowest|
|commitment||contributions earn less than -17500 (ten||||
||||||return on investment of -17,500 ten|
|||thousand Yuan), China Changan||||
||||||thousand yuan.|
|||promised to make up the difference in||||
|||cash.||||

2、The assets of the company or project include the earnings forecast, and during the report period, the profit forecast still existed, the company assets or projects achieve the profit forecast and explain the reasons
□Applicable√non-applicable
X、The
appointment, dismissal of the accounting firm
The appointment of the accounting firm
|||
|-|-|
|The name of the domestic accounting firm|Ernst & Young Hua Ming LLP|
|Domestic accounting firms pay (ten thousand||
||350|
|Yuan)||
|A continuous years of domestic accounting||
||8|
|firms audit service||
|Domestic accounting firm of Certified Public||
||Qiao Chun, Ai Wei|
|Accountants name||

Whether the accounting firms to hire
□Applicable√non-applicable
Employ audit of internal control accounting firms, financial adviser or sponsor
□Applicable√non-applicable
The company in 2013 provisional shareholders' session, the company hiredErnst&Young Hua Ming accounting firm appointed as auditor of internal controls of the company's 2014 annual.
XI、The board ofsupervisors、independent directors (if applicable) for the accounting firm during the reporting period explaining the "non standard audit report"
□Applicable√non-applicable
XII、Punishment and rectification
□Applicable√non-applicable
During report period, there is no punishnment and rectification in the Company.
XIII、After the disclosure of the annual report, the Company faces the suspension and termination of the listing□Applicable√non-applicable
XIV、Other important matters
□Applicable√non-applicable
During report period, there are no other important matters.
XV、Important matters of the company subsidiary
□Applicable√non-applicable
XVI、The distribution of firm bonds
After the discussion on January 16, 2012 meeting of the twenty-sixth meeting of the fifth board of directors deliberation and In 2012 the first provisional shareholders meeting held on February 3, 2012, passed through the relevant bill about distribution of firm bonds.On March 26, 2012, the company received the China Securities Regulatory Commission “Reply on Approving the Chongqing Changan automobile Limited by Share Ltd open corporation bonds”(zhenjianxuke【2012】388）, former permitted company issued to the public value of not more than 19.8 billion yuan of corporate bonds.
By April 26, 2012, the company has completed the work associated with the issuance of bonds, raised 19.8 billion yuan of funds. The bonds are fixed-rate variety period of 5 years.Bond coupon interest rate of5.30%
Chapter 6 Changes in the shareholding of the company and shareholders
I、Change in shareholdings
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Balance before current|||||||||
||||Addition and deduction（+，-） during change|||||after current change||
||change|||||||||
||||Additi|Stock|Providen|||||
|||||||Stock||||
||Quantity|Ratio(%)|onal|divide|t fund||Total|Quantity|Ratio(%)|
|||||||dividend.||||
||||issued|nd.|transfer.|||||
|一、Non-circulated||||||||||
||373,375,587|8.01%||||5,966|5,966|373,381,553|8.01%|
|shares||||||||||
|2、State-owned legal||||||||||
||373,358,342|8.01%||||||373,358,342|8.01%|
|person shares||||||||||
|5、Senior management||||||||||
||17,245|0%||||5,966|5,966|23,211|0%|
|personnel shares||||||||||
|二、Circulated shares|4,289,510,521|91.99%||||-5,966|-5,966|4,289,504,555|91.99%|
|1、Domestic listed||||||||||
||3,387,524,379|72.65%||||-5,966|-5,966|3,387,518,413|72.65%|
|RMB shares||||||||||
|2、Domestic listed||||||||||
||901,986,142|19.34%||||||901,986,142|19.34%|
|foreign shares||||||||||
|三、Total shares|4,662,886,108|100%||||||4 ,662,886,108|100%|

 The reason of shareholding change
□Available√Non available
Approval of changes in the shareholding of the company
□Available√Non available
The transfer of shares to change
□Available√Non available
The effect of change of the shares on the recent year and the latest period of basic earnings per share and the diluted earnings per share., net assets per share and other financial indicators attributable to shareholders of ordinary shares of the company.
□Available√Non available
Other necessary contents or the disclosure information required by the securities regulatory
□Available√Non available
2、Change in Non-circulated shares
√ Available□Non available
Unit：one share
||||||||
|-|-|-|-|-|-|-|
||Non-circulated|||Non-circulated|||
|||Decrease during the|Increase during the||Reason for|Date for the|
|Name of shareholders|shares held at the|||shares held at the|||
|||reporting period|reporting period||non-circulated shares|circulated shares|
||year-begining|||year-end|||
|China Changan|||||Stock reform||
||373,358,342|0|0|373,358,342||June 30th, 2016|
|Automobile Co., Ltd.|||||commitment||
|||||||6 months after the|
|Ren Qiang|4,311|0|0|4,311|Mangement shares||
|||||||retirement|
|||||||6 months after the|
|Zhu Huarong|0|0|18,900|18,900|Mangement shares||
|||||||retirement|
|Wang Chongsheng|12,934|12,934|0|0|Mangement shares|July 28th, 2014|
|Total|373,375,587|12,934|18,900|373,381,553|--|--|

II、Issuing and Listing of Shares coupons
1、 By the end of report period securities issuance in the late three years
||||||||
|-|-|-|-|-|-|-|
|Stock and its|||||Amount||
|derivative|||||allowed to|trade expiry|
||Issuing date|Issuing price(or ratio)|Amount|Launch Date|||
|securities|||||listed|date|
|name|||||transactions||
|Company convertible bonds, separation trading convertible bonds, corporate bonds class|||||||
|corporate debt|2012.04.23|5.30%|1,980,000,000|2012.06.01|1,980,000,000||

All the securities issuance instructions for the first three years
Distribution of firm bonds.
After the discussion on January 16, 2012 meeting of the fifth meeting of the twenty-six board of directors deliberation and In 2012 the first provisional shareholders meeting held on February 3, 2012, pass through the relevant bill about distribution firm bonds.On March 26, 2012, the company received the China Securities Regulatory Commission “Reply on Approving the Chongqing Changan automobile Limited by Share Ltd open corporation bonds”(zhenjianxuke【2012】388）, former permitted company issued to the public value of not more than 19.8 billion yuan of corporate bonds.
By April 26, 2012, the company has completed the work associated with the issuance of bonds, raised 19.8 billion yuan of funds. The bonds are fixed-rate variety period of 5 years.Bond coupon interest rate of5.30%
2.Explain the changes in total shares and shareholders structure , the company assets and liabilities structure
□Available√Non available
3. Existing internal staff shares
□Available√Non available
III、Shareholders and actual controllers situation
1、 The number of shareholders of the company and the stock
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|During the report period, the total|||Fifth trading days before the end of the disclosure of the annual||||||||
||93,254|||||||97,305|||
|number of shareholders|||report of the total number of shareholders||||||||
|Holding more than 5% of the shareholders|||||||||||
|||Percentage||||Non-circulated|Circulated||Pledged/ Frozen cases||
|Name of shareholders|Nature of|||Shares held at|||||||
|||of total|||+-|shares held at|shares held at||||
||Shareholders|||the year-end|||||Share status|Amount|
|||shares（%）||||the year-end|the year-end||||
|China Changan Automobile Co.,Ltd.|State-owned legalperson shares|39.11%||1,823,595,216|-89,962,264|373,358,342|1,450,236,874||||
||||||||||No||
|National Social Security Fund-Portfolio 102|domesticnon-state legalperson shares|1.29%||60,014,324|17,999,557||||||
||||||||||No||
|VALUE PARTNERS CLASSICFUND|foreign legalperson shares|1.12%||52,249,920|-14,045,771||||||
||||||||||No||
|United Prosperity InvestmentCo., Limited|foreign legalperson shares|0.97%||45,195,100|-19,834,158||||||
||||||||||No||
|HTHK-MANULIFE CHINAVALUE FUND|foreign legalperson shares|0.83%||38,512,454|548,722||||||
||||||||||No||
|DRAGON BILLION CHINAMASTER FUND|foreign legalperson shares|0.80%||37,168,969|2,866,108||||||
||||||||||No||
|Bank of China－DachengBlue chip securites investmentfund|foreign legalperson shares|0.78%||36,303,923|28,644,122||||||
||||||||||No||
|Bank of Communications－Hua’an Strategy stocksecurites investment fund|domesticnon-state legalperson shares|0.74%||34,574,129|21,457,044||||||
||||||||||No||
|Agricultural Bank of ChinaDacheng innovation growth ofhybrid securities investment fund(LOF)|domesticnon-state legalperson shares|0.70%||32,608,736|32,608,736||||||
||||||||||No||
|Taikang Life Insurance Co., Ltd -dividend - personal dividend-019L-FH002 Shen|domesticnon-state legalperson shares|0.68%||31,628,444|14,509,293||||||
||||||||||No||
|Explanation on the relationship and the action alike of||Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the controlling|||||||||
|above shareholders||shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong) Investment Co.,|||||||||

||||||
|-|-|-|-|-|
||Limited. belong to the concerted actor regulated by “Disclosure Administration of Shares Change||||
||Information of The Listed Company”.||||
|The ten largest circulated shareholders|||||
||||Type and amount of shares||
|Names of shareholders||Shares at the year end|||
||||type|amount|
|China Changan Automobile Co., Ltd.||1,450,236,874|RMB ordinary shares|1,450,236,874|
|National Social Security Fund- Portfolio 102||60,014,324|RMB ordinary shares|60,014,324|
|VALUE PARTNERS CLASSIC FUND||52,249,920|Domestic listed||
|||||52,249,920|
||||foreign shares||
|United Prosperity Investment Co., Limited||45,195,100|Domestic listed||
|||||45,195,100|
||||foreign shares||
|HTHK-MANULIFE CHINA VALUE FUND||38,512,454|Domestic listed||
|||||38,512,454|
||||foreign shares||
|DRAGON BILLION CHINA MASTER FUND||37,168,969|Domestic listed||
|||||37,168,969|
||||foreign shares||
|Bank of China－Dacheng Blue chip securites investmentfund||36,303,923|||
||||RMB ordinary shares|36,303,923|
|Bank of Communications－Hua’an Strategy stock securitesinvestment fund||34,574,129|||
||||RMB ordinary shares|34,574,129|
|Agricultural Bank of China Dacheng innovation growth of hybridsecurities investment fund (LOF)||32,608,736|||
||||RMB ordinary shares|32,608,736|
|Taikang Life Insurance Co., Ltd - dividend - personal dividend-019L-FH002 Shen||31,628,444|||
||||RMB ordinary shares|31,628,444|
|||Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the|||
|The top 10 shareholders to sell circulated shares, and the infinite tradable||controlling shareholder, and its wholly owned subsidiaryUnited Prosperity (Hong|||
|relationship between shareholders and top 10 shareholders or concerted||Kong)Investment Co., Limited belong to the concerted actor regulated by|||
|action||“Disclosure Administration of Shares Change Information of The Listed|||
|||Company”.|||

Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchase transactions during the report period
□Available√Non available
2、The controlling shareholder of the company.
|||||||
|-|-|-|-|-|-|
|||Date of||||
||Legal||Organization|Registered||
|Name||establishmen|||Business scope and major products:|
||/Representative||code|capita||
|||t||||

|||||||
|-|-|-|-|-|-|
||||||design, development, manufacture and|
||||||sales of automobile &motorcycle,|
||||||automobile &motorcycle engine,|
||||||automotive and motor cycle|
||||||components& parts; sales of optical|
||||||products, electronic and photoelectron|
|CHINA||||||
||||||products, night-time vision device,|
|CHANGAN||Dec 26th,||||
||Xu Liuping||71093394-8|4,582,373,700|information and communication|
|AUTOMOBILE||2005||||
||||||equipment; technical development,|
|GROUP CO., LTD.||||||
||||||technical transfer, technical consultation,|
||||||technical training, and other technical|
||||||service relative with the operation|
||||||mentioned above; imports and exports;|
||||||merge and acquisition and consultation|
||||||of assets restructuring.|
|Future development||||||
||The company focuses on the future development of vehicles and auto parts business.|||||
|strategy||||||
|Operating results,||||||
||2014, total sales revenue of China Changan 226.22 billion yuan, total profit of 18.8 billion yuan; ended|||||
|financial condition,||||||
||December 31, 2014, total assets 170.87 billion yuan and net assets 48.36 billion yuan.|||||
|cash flow, etc.||||||
|The controlling||||||
|equity and equity||||||
|during the reporting||||||
|period, the||||||
||To the reporting period, the holding companies: Harbin Dongan Auto Engine Co., Ltd. (stock code 600178);|||||
|controlling||||||
||Hunan Tianyan Machinery Co., Ltd. (stock code 600698).|||||
|shareholder of listed||||||
|companies to other||||||
|domestic and||||||
|foreign||||||

During the report period the change of controlling shareholders
□Available√ Non available
3、The controlling shareholder of the Company
|||||||
|-|-|-|-|-|-|
||Legal|Date of||||
||||Organization|||
|Name|/Representati|establishmen||Registered capita|Business scope and major products:|
||||code|||
||ve|t||||
||||||investment and management of|
||||||state-owned assets; manufacturing of|
|China South Industries||||||
||Tang Dengjie|29 Jun.,1999.|71092492-9|12,645,210,000||
||||||guns and firearms; engineering|
|Group Corp.||||||
||||||prospecting, designing, construction,|
||||||contracting, construction supervision;|

||||
|-|-|-|
|||equipment installation, etc|
|Future development|The company focuses on the future development of specialty products, vehicle engineering, new||
|strategy|energy, equipment manufacturing and other industries.||
|Operating results,|2013, China South Industries Group achieved a total sales revenue of 361.755 billion yuan, total profit||
|financial condition, cash|of 10.193 billion yuan; As of December 31, 2013, total assets of 311.809 billion yuan, net assets of||
|flow, etc.|42.405 billion yuan.||
||To the reporting period, direct or indirect holding companies: Harbin Dongan Auto Engine Co., Ltd.||
|The controlling equity and|||
||(stock code 600178); Baoding Tianwei Electric Co., Ltd. (stock code 600550); Jiangling Motors Co.,||
|equity during the|||
||Ltd. (stock code 000550); Hunan Tianyan Machinery Co., Ltd. (stock code 600698); China Jialing||
|reporting period, the|||
||Industrial Co., Ltd. (stock code 600877); Chongqing Jianshe motorcycle Co., Ltd. (stock code 200054);||
|controlling shareholder of|||
||Lida Optical Co., Ltd. (stock code 002189); Zhongyuan Special Steel Co., Ltd. (stock code 002423);||
|listed companies to other|||
||Yunnan West Instrument industrial Co., Ltd. (stock code 002265); Chongqing Changan Minsheng||
|domestic and foreign|||
||logistics Limited (stock code 8217.HK).||

Changing the actual controllers during the report period
□Available√ Non available
Relationship among the Company and its controlling shareholders:
SASAC
100%
China South Industries Group Corp.
77%
CHINA CHANGAN AUTOMOBILE GROUP CO., LTD.
100%
United Prosperity (Hong Kong) Investment Co., Ltd.
39.11%
0.97%
Chongqing Changan Automobile Co., Ltd.
Actual control people control the company through trust or other asset management method.
□Available√Non available
4、Other legal shareholders with over10% holding
□Available√Non available
Chapter 7 Information about Directors, Supervisors, Senior Management and Employees
I、Share ownership changes of directors, supervisors and senior management
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||increased|decreased|share|
||||||||Shares||||
|||||||||share|share|number|
|||||||Term|held at||||
|Name|Position|As state|Gender|Age|Term start date|||number in|number in|at the|
|||||||Termination date|beginnin||||
|||||||||this issue|this issue|end|
||||||||g（stock）||||
|||||||||（stock）|（stock）|（stock）|
|Xu Liuping|Chairman|present|M|50|2012.5.24|2015.5.24|||||
|Zhang||present|M||2012.5.24|2015.5.24|||||
|||||52|||||||
|Baolin|Vice Chairman||||||||||
|Zhu|Director,|present|M||2012.5.24|2015.5.24|||||
|||||49||||25,200||25,200|
|Huarong|President||||||||||
||Director,||||||||||
|Zhou|secretary of the|present|M||2015.1.30|2015.5.24|||||
|||||44|||||||
|Zhiping|party||||||||||
||committee||||||||||
|Lian Gang|Director|present|M|54|2012.5.24|2015.5.24|||||
|Zhang||present|M||2014.5.14|2015.5.24|||||
||Director|||49|||||||
|Dongjun|||||||||||
||Director、Vice||||||||||
|Wang Kun||||39|||||||
|||present|M||2012.5.24|2015.5.24|||||
||President||||||||||
|Ma Junpo|Director|present|M|48|2012.5.24|2015.5.24|||||
|Ouyang|independent|present|M||2012.5.24|2015.5.24|||||
|||||56|||||||
|Minggao|director||||||||||
||independent|present|M||2012.5.24|2015.5.24|||||
|Dong Yang||||58|||||||
||director||||||||||
||independent||||||||||
|Chen Zhong||present|M|58|2012.5.24|2015.5.24|||||
||director||||||||||
|Wang|independent|present|M||2012.5.24|2015.5.24|||||
|||||56|||||||
|Zhixiong|director||||||||||
|Peng|independent|present|M||2012.5.24|2015.5.24|||||
|||||50|||||||
|Shaobing|director||||||||||
|Yang Jian|Chairman of|present|M|50|2012.5.24|2015.5.24|||||

||||||||||
|-|-|-|-|-|-|-|-|-|
||the supervisory||||||||
||board||||||||
|Cai Yong|Supervisor|present|M|41|2012.5.24|2015.5.24|||
|Xie Shikang|Supervisor|present|M|44|2013.5.21|2015.5.24|||
|Liang||present|M||2012.5.24|2015.5.24|||
||Supervisor|||42|||||
|Guangzhong|||||||||
|Liu Hong|Supervisor|present|M|45|2012.5.24|2015.5.24|||
|Fan||present|||2013.4.12|2015.5.24|||
||Supervisor||M|46|||||
|Chaodong|||||||||
|Wang Lijun|Supervisor|present|F|44|2012.5.24|2015.5.24|||
|Huang||present|M||2012.5.24|2015.5.24|||
||Vice president|||46|||||
|Zhongqiang|||||||||
|Luo||present|M||2012.5.24|2015.5.24|||
||Vice president|||51|||||
|Minggang|||||||||
|Du Yi|Vice president|present|M|47|2012.5.24|2015.5.24|||
|Gong Bing|Vice president|present|M|45|2012.5.24|2015.5.24|||
|Wang Jun|Vice president|present|M|42|2012.5.24|2015.5.24|||
|Liu Bo|Vice president|present|M|48|2012.5.24|2015.5.24|||
|He Chaobing|Vice president|present|M|47|2014.1.29|2015.5.24|||
|Zhang||present|F||||||
||Vice president|||49|2014.10.17|2015.5.24|||
|Jingjing|||||||||
|Yuan|||||||||
||Vice president|present|M|46|2015.4.7|2015.5.24|||
|Mingxue|||||||||
|Li Wei|Vice president|present|M|49|2015.4.7|2015.5.24|||
||Secretary of|present|||2012.5.24|2015.5.24|||
|Li Jun|||F|45|||||
||the board||||||||
||Director, vice|departure|M||2012.5.24|2014.1.28|||
||secretary of the||||||||
|Wang|||||||||
||party|||56|||17,246|17,246|
|Chongsheng|||||||||
||committee,||||||||
||vice President||||||||
||Directors, vice|departure|M||2012.5.24|2014.3.31|||
|Cui|president,||||||||
|||||51|||||
|Yunjiang|secretary of the||||||||
||board||||||||
|Zhou||departure|M||2012.5.24|2014.12.13|||
||Director|||51|||||
|Wenchao|||||||||
|Ma Jun|Director、 Vice|departure|M|55|2012.5.24|2014.10.30|||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||presidenr||||||||||
||Director、Vice||||||||||
|Ren Qiang||||54|||5,749|||5,749|
|||departure|M||2014.1.20|2015.4.7|||||
||President||||||||||
|Total|--|--|--|--|--|--|22,995|25,200|-|48,195|

II、Employment
Main working experience of present directors, supervisors and senior managers of the last five years
(1) Directors
Mr. Xu Liuping, Board Chairman, born in 1964. With adoctor’s degree, He holds General Manager of the current Chinese South Industry Group, Deputy Secretary Member of the Party Committee of China South Group Corp, and Chairman and Secretary of the Party Committee of China Changan Automobile Group Co, Ltd. He used to be the Vice Director of Planning department, Director of Automobile department and Assistant to the General Manager of China South Industries Group Corp, the Chairman, President and Secretary of the Party Committee of Changan Automobile (Group) Co., Ltd., the Secretary of the Party Committee of Changan Automobile.
Mr. Zhang Baolin, Vice Chairman, born in 1962, he has obtained a postgraduate degree, a senior economist and senior political&ideological worker. He currently holds the positions of the assistant to the General Manager of China South Group Corp, President of China Changan Automobile Co, Ltd and vice chairman of Chongqing Changan Automobile. He used to work as Vice Secretary and Secretary of the League Committee of the South-west Industries Bureau in China Industries Company, Secretary of the Party Committee of Chongqing Changfeng Machinery Factory, Senior Deputy General Manager and General Manager of Chengdu Wanyou Company, Director, Vice President and Deputy General Manager of Changan Automobile (Group) Co., Ltd., Deputy Executive General Manager of the Company, the vice secretary of the Party Committee of China Changan, president of Chongqing Changan Automobile.
Mr. Zhu Huarong, Director and President, He was born in 1965, master graduate student, researcher-level senior engineer. Currently he is vice secretary of party committee of Changan Automobile Group and president of Chongqing Changan Automobile. He was deputy director of engine research institute of Jiangling Machinery, Factory, vice director of Changan Technology Department, chief engineer of Changan Automobile Manufacture Factory, president assistant of Changan Automobile (Group) Co., Ltd. and director of technical center, director of science and technology committee, vice President and secretary of party committee of Chongqing Changan Automobile.
Mr. Zhou Zhiping, Director and secretary of party committee. He was born in 1971, the doctor graduate. Currently he is staff director of China South Group Corp, director and secretary of the Party Committee of Chongqing Changan Automobile. He was deputy director of Motor sector of development and planning department of China South GroupCorp，director of long-term planning sector of development and planning department of China South Industries Group Corporation, deputy director and director of capital operation Department of China South Industries Group Corp, the general manager of the southern industrial asset management Ltd, the staff director of China South Industries Group.
Mr. Lian Gang, director, born in 1960, he has obtained a master degree and senior engineer of researcher's grade. He is now the vice president of China Changan Automobile Co., Ltd... He was a deputy general manager of Dongan Auto. Engine Co., Ltd., deputy general manager of Dongan Group; deputy general manager of Harbin Aircraft Industry (Group) Co., Ltd; Chairman and General Manager of Dongan mitsubish, Chairman and General Manager of Hafei Auto. Group; Vice team leader of preparation team
for Aviation Industry Corp. of China; secretary of sub-CPC and deputy general manager of Aviation Industry Corp. of China.
Mr.Zhang Dongjun, Director, is born in 1966,master’s degree. Now he is the Director and Chief Accountant of China Changan
Automobile Group Co, Ltd. He used to be the deputy general manager of the southern industrial asset managementLtd、the deputy
director of Capital operation Department of China South Industries Group, the deputy general manager of China South Industries Automobile Co.,Ltd、the assistant to president of China Changan Automobile Group Co, Ltd and the general manage of the Capital operation Department.
Mr. Wang Kun, Director, born in 1975,bachelor’s degree, senior accountant. He used to be the director of Capital operation (Administration division) under Capital operation Department of China South Industries Group, Vice Director of Capital operation Department, the Director and Chief Accountant of China Changan Automobile Group Co, Ltd.
Mr. Ma Junpo, director, born in 1966,master’s degree, senior engineer. Now he is president assistant of China Changan Automobile Group Co., Ltd. Served as Deputy Director and director of Development Planning department of China South Industries Automobile Co., Ltd., and was the vice General manager of the development strategies department of China South Industries Automobile Corporation.
Mr. Ouyang Minggao, independent director, born in 1958, he is the special employed professor of the Ministry of Education, the dean, professor and the doctoral tutor of the Automobile Engineering department of the Tsinghua University, the Director of Automotive Safety and Energy Conservation National key Laboratory, the director of Beijing Tsinghua energy-saving and new energy Automotive Engineering Center, The Standing Committee of the Chinese Political Consultative Conference, the overall team leader of the major projects of the National "863" Project on Energy-saving and new energy automobiles, the expert of the overall group of the National "Tenth Five-Year" 863<ElectricVehicles> major special project, the overall Team Leader and Project Leader of the “Fuel cell city bus" project., and the independent director of Shanghai Diesel Engine Company Limited.
Mr. Dong Yang, an independent director, born in 1956, engineering master's degree, research-level senior engineer, currently he is the executive vice president and G.S. of China Association of Automobile Manufacturers; vice chairman of the world automobile organization (OICA), Director-General of China Society of Automotive Engineers, deputy standing director of Machinery Industry Federation; qualification evaluation expert of the National Science and Technology Award assessors. And he served as a deputy director of Industry Management Department under State Administration of Machinery Industry Bureau; General Manager and deputy party secretary of Beijing Automotive Industry Holding Co., Ltd, who presided over the formulation of "85", "95" science and technology planning for national automobile industry; authored "the long-term scientific and technological development program for automobile industry", which incorporated into the national science and technology "White Paper"; he took charge of the National Scientific and Technological Projects, the National Automotive Electronics Technology Project and the formation of UAES, electric vehicles and vehicle development projects, and participated in the WTO negotiations.
Mr. Chen Zhong, independent director, born in 1956, he is a financial doctor and researcher. He was once the deputy director and director of the research department of the original Chinese Enterprise Management Association, the Secretary-Genera (legal representative) of the Chinese enterprise management Science Foundation, executive vice president, deputy party secretary, executive director of the China Enterprise Confederation, the Deputy Secretary-General and the party member (to assist in charge of finance, project work plans and prior project) of Chongqing Municipal Government. He is now the Chairman of New Century Fund Management Co., Ltd, and enjoys government special allowances of the state council. His Main part-time positions are as follows: vice president of China investment association, the member of the ManagementDepartment’s Accreditation Board of National Natural Science Foundation, the Vice-President of Chinese Young Entrepreneurs Association, the part-time professor of Jilin University and Beijing Technology and Business University, the independent director of Zhongshengdongli and Chongqing Beer Company.
Mr. Wang Zhixiong, independent director, born in 1958, he is a graduate of the law major. It has been 25 years since he began to work as a full-time lawer. He had being worked in citic law firm from October, 1985 to March, 1996, mainly engage in the law practice related to the foreign-related economic, investment, securities and financial affairs. He joined the Beijing Tongshang law firm as the partner in April, 1996 and worked as the partner of Beijing Junhe law firm in March, 2002. He got the eligible qualification of securities law service in 1993, participated in the law practice of dozens of enterprises, joint-stock transformation, stock issuance and listing. He had once served as the independent director of the Jiangsuwuzhong, Mr. Wang Zhixiong is mainly
engaged in the law affairs related to finance, securities, company law, foreign investment, corporate mergers and acquisitions.
||
|-|
|Mr. Peng Shaobing, independent director, born in 1964, he has obtained the doctor’s degree in economics and is a professor and|
|a doctoral guide. He is now the Secretary of general Party branch of the accounting institute of the South Western University of|
|Finance and Economics, the member of the Chinese Accounting Association, the standing member of the education branch of the|
|Chinese Accounting Association, a committee member of the education and training committee of Chinese Institute of Certified|
|Public Accountants Association, the consultative expert of the enterprise internal control standards committee of the Ministry of|
|Finance. Mr. Peng Shaobing has being engaged in the scientific research and teaching work related to the financial accounting and|
|financial management for a long time, his main research areas are as follows: accounting standards and systems, financial reporting|
|and analysis, capital markets and corporate governance, corporate finance and fund management, state-owned capital operation and|
|management, financial risk control and management.|

(2) Supervisors
Mr. Yang Jian, supervisor, born in 1964, master's degree, senior engineer. Currently he is the eputy party secretary of China Changan Automobile Group Co., Ltd. He served as the deputy director of No.59 Institute of China Ordnance Industry, Party Secretary and secretary of of No.59 Institute of China Ordnance Industry; General Manager of Human Resources Department of China South Industry Automobile Corporation.
Mr. Cai Yong, supervisor, born in 1973,master’s degree, senior engineer. Currently he serves as the Assistant to the President and the Director of joint venture and cooperation management department of Changan. He served as the Deputy Director of the Secretariat under Company Office, the Director of Development& Planning Division under Development& Planning department; the Deputy Director and Director of Development& Planning department.
Mr.Xie Shikang ,supervisor ,born in 1970,MBA, The currently position is president assistant and director of strategic planning department and high-level passenger cars department. Served as general manager of the company's high-level sedan sales department, The company director of general office and Changan Automotive News spokesman, deputy general manager of Chongqing Changan Visteon Engine Control Systems Co. ltd..,
Mr. Liang Guangzhong, supervisors, born in 1972, bachelor degree, senior economist, senior political engineer. Currently he serves as the director of Human Resources Department. He served as director of Comprehensive Management Office of Changan Automobile Engineering Institute, vice president of Changan Automobile Engineering Institute, vice director of Human Resource Department.
Mr. Liu Hong, supervisors, born in 1959, bachelor degree, senior political engineer. He currently is the vice chairman of labour union of company. He served as the vice director of the HR department, Vice secretary of CPC of Jiangbei factory, vice director of Jiangbei factory.
Mr.Fang Chaodong , Employees supervisors ,born in 1968, master, He is vice secretary of discipline inspection department, company audit, A former director of vice director of human resources and human development, Changan auto sale Limited company party secretary and deputy general manager.
Ms.Wang Lijun, supervisor, born in 1970, bachelor degree, senior engineer. She currently is the president of Commercial Vehicle Engineering Institute of Changan Automobile Commercial Vehicle Business Department. She served as Deputy Director of automotive manufacturing technology department, Deputy Director, the Director and branch deputy secretary of product improvement department under Automotive Engineering Institute, the director of commercial vehicle design department, the deputy director of vehicle development department No.4 under the Institute of Automotive Engineering, the vice director of Automobile Engineering Institute, vice director of Automotive Engineering Institute.
(3) Senior Management other than Directors and Supervisors:
Mr. Huang Zhongqiang, vice president, born in 1968,master’s degree in engineering, senior engineer, he used to be the Vice
Director and Director of the GeneralManager’s Office of CHANGAN AUTOMOBILE (GROUP) CO., LTD., Director of the Quality Control Department, Assistant to President, and Vice President, Secretary of CPC of Chognqing Changan Suzuki Auto. Co., Ltd.
Mr. Luo Minggang, Vice President of the Company and Executive Vice President& Secretary of CPC of Changan Ford Automobile Co., Ltd., was born in 1963. He has aMaster’s Degree in Engineering, is a senior researcher-level engineer. He used to serve as Vice Director of Workshop No.26, and Director of Technology Department of Jiangling Machinery Plant, Director of No.1 Technology Institute of CHANGAN AUTOMOBILE (GROUP) CO., LTD., Director of Engine Technology Department and Vice Chief Engineer of Automobile Manufacturing Factory, Vice Director of Technical Center, Deputy Manager of Engine Manufacturing Factory, Deputy Manager and Chief Engineer of Automobile Manufacturing Factory, Vice Director of Changan Automotive Engineering Institute, the Executive Vice President of CFMA, Assistant to the President, vice President of CHANGAN AUTOMOBILE (GROUP) CO., LTD.
Mr. Du Yi, Vice President. Born in 1967, master, senior engineer. He used to be the vice president, executive vice president of Harbin Dongan Automotive Engine Manufacturing Co., Ltd, the vice president of Hafei Automobile Industry Group Co., Ltd. and the General Manager of the listed company, the Chairman, General Manager, deputy party secretary of Hafei Automobile Industry Group Co., Ltd.
Mr. Gong Bing, Vice President. Born in 1969, MBA, Senior Economist. He used to be the Chairman, General Manager of Chongqing Jialing special equipment limited company, Chairman and general manager of China Jialing, vice general manager of Motorcycle Operation department under China South Industries Group, the general manager of Chongqing South Motorcycle Limited Liability Company.
Mr. Wang Jun, Vice President. Born in 1967, Master of Engineering, Senior Engineer. He used to be the vice Director, Director of Scientific Research Management Division under Company Technical Center, the vice director of Automobile Engineering Insitute and the director of Product Planning Department, the manager of Product Management Division under Changan Automobile Sales Company, the Manger of Product Planning Division under Marketing Department, the Vice Director, Director of Marketing Department, the Assistant to the President, Gengeral Manager of Changan Automobile Sales Company.
Mr. Liu Bo, Vice President. Born in 1967, Master of Engineering, Senior Researcher-level Engineer. He used to serve as the Vice Director of Workshop No.71 of Jiangling Machinery Plant, the Vice Director of Engine Research Division under Company Technology Department, the Vice Director of the Technical Center, the Vice Director, Excutive vice Director of Automobile Engineering Institute, Assistant to the President and the Director of Projcet Supervision Office of the Company, the Director of the Project Adminstration Department.
Mr.He Chaobing,Vice President ,was born in 1967, master, Professor level senior engineer. A former director of Automotive Engineering Research Institute Vice President and vehicle development four center , Deputy director of commercial vehicle business management department, President assistant and general manager of the Beijing Changan Automobile Co.Ltd, President assistant and director of purchase department, President assistant and vice general manager of the commercial vehicle division
Ms Zhang Jingjing, Vice President, General counsel. Born in 1966, bachelor's degree, professor-level and senior engineer. He used to serve as former deputy chief engineer of the 2nd factory of the Company, vice minister of development and planning department of the Company, deputy director of Science and Technology Committee of the Company, deputy director of the administration office, the director of the project department, the minister of the Company's human resources department , the company CEO assistant and the Minister of Quality Department.
Mr. Yuan Mingxue, vice president. Born in 1968, Master graduate student, senior engineer. A former assistant president of Changan automobile and Executive Vice President of Jiangling Holdings, the assistant president of Changan automobile and strategic planning minister, Party branch secretary, director of the capital operation, the assistant president of Changan automobile and general manager and party secretary of overseas business development department.
Mr. Li Wei, vice president. Born in 1966. Master graduate student, research senior engineer. The former president of the Beijing
Institute, executive vice president, assistant president of Changan automobile and Party committee secretary of Changan Automotive Engineering Research Institute.
Ms. Li Jun, the Secretary of BOD and the Vice Director of Financial Department, was born in 1969, MBA, senior accountant. She used to be the Vice Director of Security Investment Office, Director of Capital Operation Office of the Financial Department, Director of the BOD Office.
Employment inshareholders’ work unit
√ applied□ not applied
|||||||
|-|-|-|-|-|-|
||||||Whether get|
||Name of|||||
|||Position in shareholders’|Term start||allowance in|
|Name|shareholders’ work|||Term end date||
|||work unit|date||shareholders’|
||unit|||||
||||||work unit|
|||chairman, secretary of the||||
|Xu Liuping|China Changan||||Y|
|||party committee||||
|Zhang||||||
||China Changan|director, president|||N|
|Baolin||||||
||China Changan|vice secretary of party||||
|Zhu Huarong|||||N|
|||committee||||
||China Changan|vice secretary of party||||
|Yang Jian|||||Y|
|||committee||||
|Lian Gang|China Changan|vice president|||Y|
|Zhang|China Changan||||Y|
|||vice president||||
|Dongjun||||||
|Ma Junpo|China Changan|president assistant|||Y|

 Employment in other work unit
√ applied□ not applied
|||||||
|-|-|-|-|-|-|
||||||Whether get|
||Name of other work|Position in other work|Term start||allowance in|
|Name||||Term end date||
||units|units|date||shareholders’|
||||||work unit|
|||School board member, deputy||||
|Ouyang||||||
||Qinghua University|director of school academic|||Y|
|Minggao||||||
|||committee||||
||China Automotive Industry|Vice chairman of the standing|||Y|
|Dong Yang||||||
||Association|committee, general secretary||||
||New China Fund|Chairman of the board of|||Y|
|Chen Zhong||||||
||Management Co., Ltd|directors||||
|Wang Zhixiong|Beijing Junhe Law Firm|partner|||Y|
||Accounting College of|Secretary of general Party|||Y|
|Peng Shaobing||||||
||Southwest University of|branch||||

||||
|-|-|-|
||Finance and Economics||
||China South Industries||
|Zhou Zhiping||Staff elected director|
||Group Corp.||
|Position in|||
||This table only shows the main office performance and position in of independent directors.||
|other work unit|||

III、Remuneration of directors, supervisors and senior management
Payment decision-making process, determination basis, the actual payment of directors, supervisors and senior managers Decision-making process: in addition to the independent directors, the annual remuneration of directors, supervisors and senior management' are referring to the wage management regulations and rating standard of Southern Industrial Group. Payment of company independent directors is prescribed by the board of directors and submitted to the board of directors of the company, and approved by the shareholders' general meeting.
In accordance with: the senior management evaluation is divided into annual appraisal, mid-term assessment, term-change assessment and "look back" examination. Annual appraisal is to evaluate the business performance which senior management is in charge of, and the employee representatives and part of the units give to democratic appraisal or special evaluation on senior management, the assessment results will feedback to themselves in time, and points out problems existing in their work and relevant suggestions for improvement, which are to be improved in the coming new year. At the same time the assessment results will be linked with the annual performance award.
Mid-term assessment is mainly to evaluate the business performance which senior management is in charge of, assessment results are related to the targeted training, position promotion, post communication, etc; term-change assessment is that the employee representative give democratic evaluation on all the senior management and do special visit to part of unit, and the assessment results are related to the targeted training, position promotion, post communication training and post appointment of the senior management; new office head "look back" examination is mainly to look back the adjusted team, to understand the working status of the new team in time, check the configuration effect of the new group, to promote the new group into role as soon as possible, reduce the risk of personnel employment.
Actual payments: senior managers pay basic salary monthly, annual performance prize combines annual appraisal status, the rest delays payment according to the company's business situation. In 2013, the remuneration the directors, supervisors and senior managers receiving from the company is RMB1379.33 million yuan in total. Payment of directors, supervisors and senior managers got from the company during the reporting period
|||||||
|-|-|-|-|-|-|
||||||Total earning from the|
|Name|Position|Gender|Age|status||
||||||company|
|Zhang Baolin|Vice Director|M|52|present|967,626|
|Zhu Huarong|Director and President|M|49|present|912,864|
|Ren Qiang|Director and Vice President|M|54||826,595|
|Wang Kun|Director and Vice President|M|39||238,016|
|Ouyang Minggao|independent director|M|56|present|60,000|
|Dong Yang|independent director|M|58|present|60,000|

|||||||
|-|-|-|-|-|-|
|Chen Zhong|independent director|M|58|present|60,000|
|Wang Zhixiong|independent director|M|56|present|60,000|
|Peng Shaobing|independent director|M|50|present|60,000|
|Cai Yong|Supervisor|M|41|present|409,135|
|Xie Shikang|Supervisor|M|44|present|351,727|
|Liang Guangzhong|Supervisor|M|42|present|336,461|
|Liu Hong|Supervisor|M|45|present|297,090|
|Fan Chaodong|Supervisor|M|46|present|288,648|
|Wang Lijun|Supervisor|F|44|present|339,389|
|Huang Zhongqiang|Vice president|M|46|present|826,370|
|Luo Minggang|Vice president|M|51|present|943,014|
|Du Yi|Vice president|M|47|present|722,026|
|Gong Bing|Vice president|M|45|present|879,370|
|Wang Jun|Vice president|M|42|present|724,228|
|Liu Bo|Vice president|M|48|present|860,192|
|He Chaobing|Vice president|M|47|present|704,780|
|Zhang Jingjing|Vice president|F|49||462,915|
|Li Jun|secretary of the board|F|45|present|280,547|
||leave the director, vice||||805,478|
|Wang Chongsheng|President post during the|M|56|departure||
||report period|||||
||leave the Director and vice||||504,991|
|Cui Yunjiang|president, secretary of the|M|51|departure||
||board|||||
||leave the Director and vice||||811,892|
|Ma Jun||M|55|departure||
||president,|||||
|In Total|--|--|--|--|13,793,354|

 The authorized equity incentive of the directors, supervisors and senior managers during the reporting period
□ applied√ not applied
IV、Resignation and dismissal of company directors, supervisors and senior managers
||||||
|-|-|-|-|-|
|Name|Position|Status|Date|Reason|
|Wang Chongsheng|Director and Vice President|departure|2014.01.29|Retired due to the age|
|||||Hired due to the businessdevelopment|
|He Chaobing|Vice President|Employed|2014.01.29||

||||||
|-|-|-|-|-|
|||||Hired due to the business|
|Ren Qiang|Director|Elected|2014.04.17||
|||||development|
||Director and vice president,|||Departure due to the change of|
|Cui Yunjiang||departure|2014.04.03||
||secretary of the board|||the job position|
||Director and vice president,|||Hired due to the business|
|Wang Kun||Employed|2014.04.17||
||secretary of the board|||development|
|Ma Jun|Director and vice president|departure|2014.10.30|Retired due to the age|
|||||Hired due to the business|
|Zhang Jingjing|Vice president|Employed|2014.10.30||
|||||development|
|||||Departure due to the change of|
|Zhang Baolin|President|departure|2014.12.17||
|||||the job position|
|||||Hired due to the business|
|Zhang Baolin|Vice chairman|Employed|2014.12.17||
|||||development|
|||||Hired due to the business|
|Zhu Huarong|President|Employed|2014.12.17||
|||||development|
|||||Hired due to the business|
|Zhou Zhiping|Director|Elected|2015.03.25||
|||||development|
|||||Hired due to the business|
|Zhang Dongjun|Director|Elected|2015.03.25||
|||||development|
|Ren Qiang|Director|departure|2015.4.7|Retired due to the age|
|||||Hired due to the business|
|Yuan Mingxue|Vice president|Employed|2015.4.7||
|||||development|
|||||Hired due to the business|
|Li Wei|Vice president|Employed|2015.4.7||
|||||development|

V、Core technology team or key technical personnel changes during the reporting period (not the directors, supervisors and senior management)
During the reporting period, the company's core technical team and key technical personnel have remained stable.
VI、The Employees of the Company
By the end of this year, total headcount of the Company was 34,260,including 20,799 production workers, 1,260salesmen, 6,688 engineers, 372 finance staff, 2,226 administrative staff, and 2,915 others. Among the total, there were 86 with doctorate degree, 1,106 with master degree 9,713 with
bachelor degree, 6,214 with college education, )5,337 with vocational school graduate(including
secondary technical school), 8,636 with senior high school education(including vocational high
school), and 3,168 with education low than junior high school (or others).
1. Professional structure diagram
The employee's professional
2. Education degree figure
The employee's education
3. Employees salary policy
Salary according to company "performance efficiency" And the establishment systems of salary codetermination, normal growth and payment security mechanism, At the same time, through the collective wage consultation signed company "salary collective contract".
4. Training Planing
Through All staff training demand acquisition, analysis. make annual training plan, promotion of staff training, the construction of learning type organization.
5.Company needs to bear the toll cost of 3,326 retired workers.
Chapter 8 Corporate Governance
I、Basic status of corporate governance
Companies in strict accordance with the "company law", "Securities Law" and Chinese SFC requirements of relevant laws and regulations, and constantly improve the corporate governance structure, improve the level of normal operation of the company, the actual situation of corporate governance with the Chinese CSRC normative documents about the listing Corporation governance requirements.
The company has established an effective internal control system over the financial report and , the company strictly implement the "Enterprise Accounting Standards", improve the basic accounting management, establish a sound financial system, optimize accounting accounting and statements preparation process, strengthen the financial supervision, conduct the in-depth implementation of financial management, establish the management foundation work, accounting and finance management authorization, the monetary fund management, financing, purchasing and payment, fixed assets, projects under construction, accounting policy, accounting estimate, consolidated financial statements, cost management, inventory management, financial analysis and other financial management system to ensure the quality of accounting information and the safety of the Company property according to the characteristics of the company management. According to internal control deficiencies identified standards of the financial report , there is no internal control defects over financial reporting in the report period. The text of the internal control self-assessment report in 2015 April 17 is published in the huge influx of information network http://www.cninfo.com.cn.
Whether there are differences in corporate governance and the "company law" and China CSRC related requirements□ yes√ no
Special activities of corporate governance, the formulation and implementation of registration management system of people familiar with insider information
Ninth meeting of the fifth board of directors has examined and approved the "Chongqing Changan automobile Limited by Share Ltd insiders registration management system", standardize the management company insider behavior. During the reporting period, companies in the performance forecast and regularly report disclosure period strengthen insider information security work, the implementation of the insider registration insider information, maintaining an open, fair, just principle, information disclosure, and earnestly safeguard the interests of investors.
II、Information regarding annualshareholders’ meeting and temporaryshareholders’ meeting during the report period
1、Annualshareholders’ meeting situation during the report period
|||||||
|-|-|-|-|-|-|
|Meeting|Opening|||Disclosure||
|||Meeting bill name|Resolution||Disclosure index|
|session|date|||date||
|||1、Work report of 2013 board of directors；2、Work||||
|2013||report of 2013 board of supervisors；3、2013 annual||||
||||All the||http://www.cninfo.com|
|annual||report and summary；4、2013 annual final finance||||
||May 8, 2014||proposals have|May 8, 2014|.cn/finalpage/2014-05-|
|shareholde||budget and 2014 annual finance budget statement；||||
||||been passed||09/64003111.PDF|
|rs meeting||5、2013annual profit distribution bill；6、Proposal||||
|||on approving 2014 expected daily related||||

|||
|-|-|
|transactions；7、Proposal on 2014 Investing Plan; 8|、tt,|
|Proposal on 2014 Financing Plan; 9、Proposal on||
|the Change of Directors; 10、About the appointmen||
|of 2014 annual financial report audit bill; 11、 abou||
|the appointment 2014 annual internal control report||
|12、Proposal on the signature of " financial service||
|agreement with ordnance equipment group finance||
|company; 13、Proposal on Trade Financing with||
|United Prosperity Investment Co., Limited(UPI)||

2、 Temporary shareholders' meeting during the reporting period
N/A.
3、 Voting rights restoration of preferred shareholders request the interim shareholders' general meeting□Available√Non available
III、Situation about the independent directors perform their duties during the reporting period.
1.Cases about independent directors attending board of directors and the shareholders' meeting
||||||||
|-|-|-|-|-|-|-|
|Cases about independent directors attending board of directors|||||||
||Times should||Times of|||Whether absent|
|Names of|attend the board|Times of|attendance by|Times of entrust||from the meeting|
||||||Times of absence||
|independent directors|of directors in|presence|communication|attendance||for successive|
||the report period||mode|||two times|
|Ouyang Minggao|11|1|10|0|0|N|
|Dong Yang|11|1|5|0|5|Y|
|Chen Zhong|11|1|10|0|0|N|
|Wang Zhixiong|11|0|10|1|0|N|
|Peng Shaobing|11|1|10|0|0|N|

 The explanation on two consecutive fails to attend the board of directors
On July 5, 2014 Mr. Dong Yang voluntarily resigned from the position of independent directors. Since the resignation of Mr. Dong Yang will lead to the proportion of the independent director lower than the statutory requirements, in accordance with the provisions of the CSRC "Guidance on the Establishment of Independent Director System in the Listing Company” and the "Articles of Association", Mr Dong Yang's resignation report will be effective after the election of the subsequent independent directors in the general meeting of shareholders to fill the vacancy.
2.Independent director raise an objection to company related matters.
In the report period independent directorshaven’t raised objection to company related matters.
3、Other explanations on the fulfillment of responsibility from independent directors
Proposal from Independent directors to the company is adopted or not
√Yes□No
The explanation on whether the proposal from independent director on the company is accepted or not
During the reporting period, the company adopted the proposals of independent directors on the equity acquisition and related party transactions and other aspects.
IV、Specialized committees of the board of directors under the performance of duties in the report period
The board of directors of the company consists of the audit committee, composed of 5 people, 3 of them are independent directors, the chairman of the committee by the accounting professional independent director Mr. Peng Shaobing as. During the reporting period, the audit committee held 3 meetings, perform the following duties:
①(cid:1) Carefully review the preparation of the company's management 2013 annual financial accounting report and audit supervision department in 2014 action plan, and agree to the above matters;
②The Ernst& Young Hua Ming issued 2013 annual audit report, the audit committee reviewed the 2013 annual financial statements (AUDIT) and major adjustments related to accounting firms, this year the company audit work is summarized, that Ernst& Young Hua Ming have professional competence, work diligently, can maintain their independence in audit, completed 2013 of the annual audit task on time. The audit committee is the company's annual financial report to vote and make resolutions, agreed to the board of directors for approval; at the same time to review about the appointment 2014 annual external auditor's proposal, submitted to the approval of the board of directors the company continue to hire accountants An Yonghuaming as the company's 2014 annual external auditors;
③The review of the company's 2014 annual audit plans and related information, to the Ernst& Young Hua Ming of the company 2014 annual financial report of the audit plan and audit requirements.
V、The work of the board of supervisors
The board of supervisors in the supervision of the reporting period found that company whether there is a risk
The board of supervisors has no objection on the monitoring items during the reporting period
VI、Independent completion situation in terms of business, personnel, assets, organization and finance which is relative to the controlling shareholders
The company and the controlling shareholders are fully independent in terms of business, assets, personnel, organization and finance.
VII、Competition situation
1. In December 2009, according to the national “Automobile Industry Adjustment and Revitalization Plan” regarding promoting auto enterprise merger restructuring and further optimization of state-owned economy strategy layout requirements, the actual controller of the company China South Industries Group Corporation and China Aviation Industry Group Company proceeded industry restructuring, China Aviation Industry Group Company transferred by free transfer100% equity of Jiangxi Changhe Automobile Co., LTD. (hereinafter referred to as "Changhe Automobile") and100% stake of Harbin Hafei Automobile Industry Group co., LTD. (hereinafter referred to as "Haqi group") into the company's controlling shareholder China Changan Automobile Group Co., LTD. (hereinafter referred to as "China Changan").This above-mentioned behavior led to competition between the company and subordinate enterprise of China Changan, the controlling shareholder. To finally solve the possible competition and better maintain the interests ofcompany’s investors, thecompany’s controlling shareholder China Changancommitment:⒈When Jiangxi Changhe
Automobile Co., Ltd. and Harbin Hafei Automobile Industry Group Co., LTD. payoff for successive two years, has sustainable development ability and management level is improved significantly,it’s proposed to combine two companies into the company. At present China Changan has not yet have conditions to reach the commitments. In October 28, 2013, the controlling shareholder of Changan has Chinese transfer Jiangxi Changhe Automobile Co. Ltd. to Jiangxi provincial state owned enterprise assets (Holdings) Limited, Chinese Changan proposed Jiangxi Changhe Automobile Co. Ltd. injected commitment matters of the company have been removed. The Harbin Hf Automobile Industry Group Co at present is still at a loss of status, the conditions have not yet reached the profitable for two consecutive years.
2. The company faced the potential competition with the subordinate enterprise Hefei Changan Automobile Company Limited (hereinafter referred to as the Hefei Changan) of the controlling shareholder China Changan Automobile Group (hereinafter referred to as "China Changan"). The sixteenth session of the sixth board of directors reviewed and approved "On the acquisition of100% shares of Hefei Changan Automobile Ltd", and the Company was authorized to acquire100% shares of Hefei Changan with self-raised funds. Up to April, 2014, the acquisition of shares was completed, and the problem of the competition between the Company and the controlling shareholders China Changan, resulting from Hefei Changan, was fully resolved.
VIII、The appraisal and incentive situation of senior management
1.Evaluation mechanism
According to the company's performance appraisal management system, the president and other senior
management personnel are examined by the company's board of directors. Examines are taken regularly and frequently, qualitative assessment and quantitative assessment are combined.
2.Incentive mechanism
Income of senior management is composed of basic salary and performance salary. Performance salary links up with performance appraisal.
3.Constraint mechanism
Company and senior management sign "employment contract", which has corresponding constraints on behavior, rights, duties, etc of senior management.
Chapter 9 Internal Control
I、Corporate
Governance Construction
The Company has been strictly complying with the requirements of relevant laws and regulations, including Company Law, Securities Law, Basic Norms of Enterprise Internal Control, Supporting Guidance of Enterprise Internal Control, andthere’s already normative corporate governance structure and relatively complete internal control system. Thecompany’s internal control has 3 level responsibilities: each business unit is responsible for its own internal control; thecompany’s Management Information Department is responsible for daily management and maintenance of internal control; thecompany’s Audit Supervision Department is responsible for the supervision, evaluation and audit of internal control; the board of directors is responsible for the internal control of the company. The company has established and improved internal control system, established Self Assessment Program of Internal Control, which provide system guarantee for the internal audit department to fully implement internal control evaluation, and set up self assessment test of internal control, defect recognition, rectification method and procedure, which effectively play positive role of the internal audit department in the company internal control evaluation.
II、Responsibility Statement of the board of directors about internal control
At present the company has established internal control system to cover main business, the related evaluation, control, communication, monitoring and other activities have been implemented in internal control activities. The company will follow the requirement of “Basic Norms of Enterprise Internal Control" and "Enterprise Internal Control Guidelines", and further improve thecompany’s internal control system, improve comprehensive risk management system, in order to improve operation management level and risk prevention capacity.
III、Establish internal control basis of financial report
According to the requirements of relevant laws and regulations, such as “Basic Norms of Enterprise Internal Control", the company has already set up relatively perfect financial and accounting system and finance internal-control system. The company strictly carries out “Enterprises Accounting Standards", and according to the company's operating management improve accounting basic management, establish and complete financial system, and continuously optimize accounting and reporting process, continue to strengthen financial supervision, further implement of financial control, set up accounting foundation work management, financial management authorization,
monetary fund management, financing, purchasing and payment, fixed assets, projects under construction, accounting policy, accounting estimate, merge statement compiling regulations, cost regulation and process, inventory management system and procedures, financial analysis system and so on, ensure the security of company assets and accounting information quality. The board of directors is responsible to establish and maintain sufficient financial report and relevant internal control system. The relevant internal control goal of financial report is to ensure that financial reporting information is true and reliable, and guard against the risk of material misstatement.
IV、Self-assessment report of internal control
||
|-|
|Big internal-control defects found in the self-assessment report of internal control during the reporting period|
|The 19th meeting of the sixth board of directors passed “Self-assessment Report of internal control of Changan Automobile"|
|(specific see the announcement), the board of directors think that: during the reporting period, the company has set internal control|
|of the business and matters incorporated in the evaluation scope which have been effectively implemented and achieve the goal of|

|||
|-|-|
|internal control, there is no major defects. There’s no major change of internal control which has substantial impact on evaluation||
|conclusion since the base date of internal control report to the evaluation report of internal control.||
|Disclosure date of self-assessment||
||2015.4.17|
|report of internal control||
|Disclosure index of self-assessment|The self-assessment report of internal control was published on Apr. 17 of|
|report of internal control|2015 on Tide Information Net (http://www.cninfo.com.cn）|

V、Audit report of internal control
|||
|-|-|
|The review opinion paragraph in the audit report of internal control||
|Audit opinions of internal control audit report issued by Ernst &young Huaming Accounting Firm are as||
|follows: Changan Auto keeps effective internal control of audit report in all important aspects according to||
|“Basic Norms of Enterprise Internal Control” and other relevant regulations.||
|Disclosure date of the audit report of internal control|2015.4.17|
||The audit report of internal control was published on Apr. 17 of|
|Disclosure index of the audit report of internal control||
||2015 on Tide Information Net (http://www.cninfo.com.cn）|

 The Accounting Firm issues non-standard internal control audit report or not?
□ Yes√ No
The internal control audit report issued by the Accounting Firm issues agrees with the self-assessment report of the board of directors or not?
√Yes□No
VI、Establishment and implementation situation of major mistake responsibility investigation system of annual report
The company in 2010 passed "Major mistake responsibility investigation system of annual report information disclosure of Changan Automobile Co., Ltd”, further strengthen management on regular report information disclosure. The annual report information disclosure has no major mistake; performance report and the actual operation result have no significant differences.
Chapter 10 Auditor’s Report
Ernst& Young Hua Ming Shen Zi (2015) No60662431_D01 To the shareholders of
Chongqing Changan Automobile Company Limited
We have audited the accompanying financial statements of Chongqing Changan Automobile Company Limited, which comprise the consolidated and the company balance sheet as at 31 December 2014, and the consolidated and the company income statements, the statements of changes in equity and the cash flow statements for the year then ended and notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management of Chongqing Changan Automobile Company Limited is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing and fairly presenting the financial statements in accordance with Accounting Standards for Business Enterprises; (2) designing, implementing and maintaining internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Chinese Standards on Auditing. Those standards require that we comply with Code Ethical for Chinese Certified Public Accountants and plan and perform the audit to obtain a reasonable assurance about whether these financial statements are free from material misstatement. 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, the auditor considers the internal control relevant to theentity’s preparation and fair presentation 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.
Auditor’s Report (continued)
Ernst& Young Hua Ming Shen Zi (2015) No60662431_D01 Opinion
In our opinion, the accompanying consolidated and the company financial statements present fairly, in all material respects, the consolidated and thecompany’s financial position of Chongqing Changan Automobile Company Limited as at 31 December 2014, and their financial performance and cash flows for the year then ended in accordance with the Accounting Standards for Business Enterprises.
Qiao Chun
Ernst& Young Hua Ming (LLP) Chinese Certified Public Accountant Ai Wei
Beijing, thePeople’s Republic of China Chinese Certified Public Accountant 15 April 2015
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2014
(Expressed in Renminbi Yuan)
Notes V 31 December 2014 31 December 2013 1 January 2013 Restated Restated Current assets
Cash 1 9,693,083,497.78 4,535,825,972.55 4,663,494,705.55 Financial assets at fair value
through profit or loss - - 332,407.00 Notes receivable 2 17,780,161,662.94 11,272,212,347.84 9,380,001,771.98 Accounts receivable 3 758,876,190.82 704,638,231.06 748,189,060.28 Prepayments 4 839,752,551.46 698,944,852.07 501,789,692.84 Interest receivable 5 22,083,194.44 - - Dividends receivable - - 450,030.00 Other receivables 6 260,457,285.50 211,810,998.81 139,556,531.18 Inventories 7 6,572,186,481.51 4,735,051,726.57 5,051,413,554.35 Other current assets 8 3,370,219.83 2,585,737.57 4,774,719.12 Total current assets 35,929,971,084.28 22,161,069,866.47 20,490,002,472.30 Non-current assets
Available-for-sale financial
assets 9 544,456,774.00 366,128,690.00 342,623,374.00 Long-term equity
investments 10 12,623,989,600.46 12,357,672,514.64 7,485,502,181.02 Investment property 11 9,460,145.04 9,490,627.13 10,054,294.79 Fixed assets 12 14,565,579,796.38 14,372,992,511.16 12,303,205,578.98 Construction in progress 13 1,273,996,965.24 1,328,773,757.05 2,923,302,915.12 Project materials 96,690.75 96,690.75 795,898.75 Fixed assets disposal 12,412.53 8,696.53 2,485,714.76 Intangible assets 14 2,878,965,225.15 2,076,220,482.54 2,143,772,047.19 Development expenditure 15 627,845,455.00 685,666,604.48 373,059,730.66 Goodwill 16 9,804,394.00 9,804,394.00 9,804,394.00 Long-term deferred
expenses 17 1,687,863.32 1,410,228.76 2,055,164.45 Deferred tax assets 18 1,160,584,772.58 998,435,801.99 859,267,186.20 Other non-current assets 20 60,901,712.09 244,336,881.52 923,395,734.00 Total non-current assets 33,757,381,806.54 32,451,037,880.55 27,379,324,213.92 TOTAL ASSETS 69,687,352,890.82 54,612,107,747.02 47,869,326,686.22
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2014
(Expressed in Renminbi Yuan)
Notes V 31 December 2014 31 December 2013 1 January 2013 Restated Restated Current liabilities
Short-term loans 21 90,000,000.00 1,498,000,000.00 1,290,000,000.00 Notes payable 22 13,108,623,397.32 9,577,654,675.13 8,243,048,996.53 Accounts payable 23 13,038,793,688.31 7,963,798,219.72 7,762,897,085.55 Advances from customers 24 5,802,717,284.79 4,260,282,749.23 4,251,461,861.03 Payroll payable 25 1,022,369,664.80 820,596,089.52 452,589,210.04 Taxes payable 26 36,024,006.54 113,689,600.15 39,450,807.83 Interest payables 27 73,458,000.00 78,113,712.49 77,316,091.67 Dividend payables 28 79,742.80 79,742.80 79,742.80 Other payables 29 2,007,416,635.58 1,779,832,773.45 2,112,619,515.07 Contingent liabilities 30 1,221,114,880.50 1,117,167,286.59 676,261,668.40 Non-current liabilities
within one year 31 - 520,000,000.00 18,000,000.00 Other current liabilities 32 2,921,898,971.68 1,895,627,102.12 1,512,428,938.67 Total current liabilities 39,322,496,272.32 29,624,841,951.20 26,436,153,917.59 Non-current liabilities
Long-term loans 33 - 1,270,000,000.00 1,068,000,000.00 Bonds payable 34 1,971,184,679.89 1,967,266,759.93 1,963,348,839.97 Long-term payroll payable 35 48,317,000.00 49,327,000.00 61,479,000.00 Special payable 36 146,635,935.13 213,630,202.50 131,053,523.96 Deffered income 37 2,687,392,181.26 2,726,487,939.90 2,664,814,288.58 Deferred tax liabilities 18 55,915,125.00 41,842,961.06 37,741,632.06 Total non-current liabilities 4,909,444,921.28 6,268,554,863.39 5,926,437,284.57
Total liabilities 44,231,941,193.60 35,893,396,814.59 32,362,591,202.16
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2014
(Expressed in Renminbi Yuan)
Notes V 31 December 2014 31 December 2013 1 January 2013 Restated RestatedOwners’ equity
Share capital 38 4,662,886,108.00 4,662,886,108.00 4,662,886,108.00 Capital reserves 39 3,227,489,320.83 3,667,206,121.77 3,596,988,075.06 Other comprehensive
income 40 292,013,397.24 171,989,362.38 151,315,344.93 Special reserves 41 7,864,849.94 1,670,967.02 - Surplus reserves 42 2,331,443,054.00 1,816,272,976.53 1,441,483,901.26 Retained earnings 43 15,115,601,819.79 8,537,087,238.91 5,776,069,679.90 Equity attributable to owners25,637,298,549.80 18,857,112,774.61 15,628,743,109.15
Minority interests (181,886,852.58) (138,401,842.18) (122,007,625.09) Total equity 25,455,411,697.22 18,718,710,932.43 15,506,735,484.06 TOTAL LIABILITIES
ANDOWNERS’ EQUITY 69,687,352,890.82 54,612,107,747.02 47,869,326,686.22 The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
The financial statements on pages 3 to 18 have been signed by:
Legal Principal in Charge Chief
Representative：______________ ofAccountancy：______________ Accountant：______________
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Notes V 2014 2013 Restated Operating revenue 44 52,913,332,100.83 39,141,703,050.19 Less: Operating cost 44 43,265,825,863.87 32,469,558,487.85
Business tax and surcharges 45 2,064,344,726.91 1,267,110,629.49
Operating expenses 46 4,357,168,648.54 3,557,559,772.03
General and administrative expenses 47 3,741,914,875.84 2,992,455,780.18
Financial expenses 48 66,074,040.06 74,542,760.22
Impairment loss on assets 49 343,605,049.25 359,076,602.23
Add: Profit and loss from fair value changes 50 - (332,407.00) Investment income 51 8,102,117,000.24 4,506,602,315.09
Including: Investment income from
associates and joint venture 7,991,213,934.13 4,474,644,845.42
Operating profit 7,176,515,896.60 2,927,668,926.28
Add: Non-operating income 52 401,670,177.11 290,487,646.93
Including: gain on disposal of
non-current assets 4,835,757.23 32,881,625.97
Less: Non-operating expenses 53 39,356,429.47 39,644,452.42
Including: loss on disposal of
non-current assets 22,128,955.42 18,631,996.52
Total profit 7,538,829,644.24 3,178,512,120.79
Less: Income tax expense 55 20,850,708.62 (152,930,814.72)
Net profit 7,517,978,935.62 3,331,442,935.51
Including: The net profit of the combined parties
before business combination involving
entities under common control (43,390,581.51) (137,049,414.15) Net profit attributable to owners 7,561,081,585.81 3,368,591,105.89
Minority interests (43,102,650.19) (37,148,170.38)
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Notes V 2014 2013 Restated Other comprehensive income, net of tax
Total comprehensive income attributable
to owners, net of tax 40
Other comprehensive income not to be reclassified
to profit or loss in subsequent periods:
Change in net liability or assest from defined
benefit plan 556,000.00 - Other comprehensive income to be reclassified
to profit or loss in subsequent periods:
Changes in fair value from
available-for-sale financial assest 129,972,491.77 19,403,987.00 Foreign currency reserve (10,504,456.91) 1,270,030.45 Reclassification adjustments for gains on disposal
included in the consolidated income statement - -
Total comprehensive income attributable
to minority interests, net of tax - - Total comprehensive income 7,638,002,970.48 3,352,116,952.96 Total comprehensive income attributable to owners 7,681,105,620.67 3,389,265,123.34
Total comprehensive income attributable to minority
interest (43,102,650.19) (37,148,170.38) Earnings per share 56
Basic earnings per share 1.62 0.72 Diluted earnings per share Not Applicable Not Applicable
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES INSHAREHOLDERS’ EQUITY
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Equity attributable to owners
Share capital Captial Other Special Surplus Retained Subtotal Mionrity interest Total equity reserves comprehensive reserves reserves earnings
income
At 31 December 2013 4,662,886,108.00 3,078,557,394.14 (14,890,520.84) 1,670,967.02 1,816,272,976.53 9,233,857,503.02 18,778,354,427.87 (138,401,842.18) 18,639,952,585.69 Less: Change in accounting policy - (186,879,883.22) 186,879,883.22 - - - - - - Business combination
involving entities under
common control - 775,528,610.85 - - - (696,770,264.11) 78,758,346.74 - 78,758,346.74 At 1 January 2014 (Restated) 4,662,886,108.00 3,667,206,121.77 171,989,362.38 1,670,967.02 1,816,272,976.53 8,537,087,238.91 18,857,112,774.61 (138,401,842.18) 18,718,710,932.43 Changes during the year
Total comprehensive income - - 120,024,034.86 - - 7,561,081,585.81 7,681,105,620.67 (43,102,650.19) 7,638,002,970.48 Input by investors and decrease
in capital
1.Business combination
involving entities under
common control - (439,980,000.00) - - - - (439,980,000.00) - (439,980,000.00) 2.Other - 263,199.06 - - - - 263,199.06 (628,522.01) (365,322.95) Distribition of profit
1.Pick-up of surplus
reserves - - - - 515,170,077.47 (515,170,077.47) - - -
2.Distribution to owners - - - - - (467,396,927.46) (467,396,927.46) - (467,396,927.46) Special reserves
1.Provided - - - 32,171,314.11 - - 32,171,314.11 1,040,952.56 33,212,266.67 2.Ultilized - - - (29,105,295.69) - - (29,105,295.69) (794,790.76) (29,900,086.45) 3.Effective portion of
changes in special
reserves from joint
venture - - - 3,127,864.50 - - 3,127,864.50 - 3,127,864.50 At 31 December 2014 4,662,886,108.00 3,227,489,320.83 292,013,397.24 7,864,849.94 2,331,443,054.00 15,115,601,819.79 25,637,298,549.80 (181,886,852.58) 25,455,411,697.22 The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES INSHAREHOLDERS’ EQUITY
Year ended 31 December 2013 (Restated)
(Expressed in Renminbi Yuan)
Equity attributable to owners
Share capital Captial Other Special Surplus Retained Subtotal Mionrity interest Total equity reserves comprehensive reserves reserves earnings
income
At 31 December 2012 4,662,886,108.00 3,088,935,360.43 (16,160,551.29) - 1,441,483,901.26 6,335,790,529.86 15,512,935,348.26 (122,007,625.09) 15,390,927,723.17 Less: Change in accounting policy - (167,475,896.22) 167,475,896.22 - - - - - - Business combination
involving entities under
common control - 675,528,610.85 - - - (559,720,849.96) 115,807,760.89 - 115,807,760.89 At 1 January 2013 (Restated) 4,662,886,108.00 3,596,988,075.06 151,315,344.93 - 1,441,483,901.26 5,776,069,679.90 15,628,743,109.15 (122,007,625.09) 15,506,735,484.06 Changes during the year
Total comprehensive income - - 20,674,017.45 - - 3,368,591,105.89 3,389,265,123.34 (37,148,170.38) 3,352,116,952.96 Input by investors and decrease
in capital
1.Capital input by investors - 100,000,000.00 - - - - 100,000,000.00 20,753,953.29 120,753,953.29 2.Other - (29,781,953.29) - - - - (29,781,953.29) - (29,781,953.29) Distribition of profit
1.Pick-up of surplus
reserves - - - - 374,789,075.27 (374,789,075.27) - - -
2.Distribution to owners - - - - - (232,784,471.61) (232,784,471.61) - (232,784,471.61) Special reserves
1.Provided - - - 28,431,299.68 - - 28,431,299.68 - 28,431,299.68 2.Ultilized - - - (26,760,332.66) - - (26,760,332.66) - (26,760,332.66) At 31 December 2013 (Restated) 4,662,886,108.00 3,667,206,121.77 171,989,362.38 1,670,967.02 1,816,272,976.53 8,537,087,238.91 18,857,112,774.61 (138,401,842.18) 18,718,710,932.43 The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Notes V 2014 2013 Restated CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 47,070,019,938.58 37,703,561,071.86 Refunds of taxes 186,933,943.35 147,688,198.78 Cash received relating to other
operating activities 57 340,831,441.25 1,184,689,023.96 Subtotal of cash inflows 47,597,785,323.18 39,035,938,294.60 Cash paid for goods and services 31,591,516,401.86 27,470,643,657.74 Cash paid to and on behalf of employees 3,910,159,904.05 2,723,312,364.42
Cash paid for all types of taxes 4,114,101,735.03 2,486,302,541.06 Cash paid relating to other
operating activities 57 4,202,085,507.67 4,818,525,382.95 Subtotal of cash outflows 43,817,863,548.61 37,498,783,946.17 Net cash flows from operating activities 58 3,779,921,774.57 1,537,154,348.43 CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from disposal of investment 109,928,689.99 8,715,226.30
Cash received from return on investment 7,734,539,013.46 1,632,208,203.42
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets 4,692,004.06 9,701,775.75 Cash received relating to other
investing activites 57 66,636,035.28 31,545,952.00 Subtotal of cash inflows 7,915,795,742.79 1,682,171,157.47 Cash paid for acquisition of fixed assets,
intangible assests and other long-term
assets 2,215,608,713.93 2,600,046,051.82 Cash paid for acquisition of investments 40,000,000.00 1,304,825,990.00
Cash paid for acquisition of subsidiary and
other joint venture 58 439,980,000.00 - Cash paid relating to other
investing activities 57 626,230.62 - Subtotal of cash outflows 2,696,214,944.55 3,904,872,041.82 Net cash flows from investing activities 5,219,580,798.24 (2,222,700,884.35) The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT (continued)
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Notes V 2014 2013 Restated CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from absorption of
investment - 100,000,000.00 Cash received from borrowings 90,000,000.00 2,558,000,000.00 Cash received relating to other
financing activities 57 374,847,270.36 332,208,572.31 Subtotal of cash inflows 464,847,270.36 2,990,208,572.31 Cash repayments of borrowings 3,288,000,000.00 1,646,000,000.00 Cash paid for distribution of dividends
or profits and interest expenses 659,806,255.03 441,592,360.91 Cash paid relating to other
financing activities 57 95,029,974.54 158,865,869.37 Subtotal of cash outflows 4,042,836,229.57 2,246,458,230.28 Net cash flows from financing activities (3,577,988,959.21) 743,750,342.03
Effect of foreign exchange rate changes, net (1,601,557.45) (7,606,526.91) NET INCREASE IN CASH AND CASH EQUIVALENTS 5,419,912,056.15 50,597,279.20
Add: Cash and cash equivalents at
beginning of year 3,942,941,861.56 3,892,344,582.36 CASH AND CASH EQUIVALENTS AT END OF YEAR 58 9,362,853,917.71 3,942,941,861.56 The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2014
(Expressed in Renminbi Yuan)
Notes XII 31 December 2014 31 December 2013 1 January 2013 Restated Restated Current assets
Cash 8,828,152,864.35 3,290,584,684.00 3,081,165,146.84 Notes receivable 17,437,167,211.16 10,612,070,124.82 7,803,725,888.00 Accounts receivable 1 2,761,909,831.22 1,393,930,437.57 1,071,345,619.44 Prepayments 718,818,105.48 1,006,257,953.21 397,342,870.76 Interest receivable 22,083,194.44 - - Dividend receivable - - 450,030.00 Other receivables 2 668,159,856.84 550,745,735.30 315,576,507.71 Inventories 5,742,492,948.04 3,995,173,686.02 3,396,111,119.31 Total current assets 36,178,784,011.53 20,848,762,620.92 16,065,717,182.06 Non-current assets
Available-for-sale
financial assets 544,456,774.00 285,066,774.00 267,316,774.00 Long-term equity
investments 3 13,961,764,958.78 13,658,387,927.37 8,777,189,593.75 Fixed assets 12,096,357,952.31 11,991,246,390.25 10,191,569,154.86 Construction in progress 1,104,857,686.48 1,227,441,848.35 2,571,337,326.77 Project materials 96,690.75 96,690.75 795,898.75 Fixed assets disposal - - 2,485,714.76 Intangible assets 2,609,607,273.08 1,854,137,128.97 1,964,748,143.27 Development expenditure 553,114,237.90 612,487,126.25 354,257,952.32 Long-term deferred
expenses 360,160.00 540,240.00 720,320.00 Deferred tax assets 1,074,871,906.67 897,445,610.07 740,904,515.31 Other non-current assets 60,901,712.09 244,336,881.52 923,395,734.00 Total non-current assets 32,006,389,352.06 30,771,186,617.53 25,794,721,127.79 TOTAL ASSETS 68,185,173,363.59 51,619,949,238.45 41,860,438,309.85
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
BALANCE SHEET (continued)
31 December 2014
(Expressed in Renminbi Yuan)
Notes XIV 31 December 2014 31 December 2013 1 January 2013 Restated Restated Current liabilities
Short-term loans - 1,200,000,000.00 1,170,000,000.00 Notes payable 12,543,099,927.12 7,579,635,615.92 6,066,445,485.27 Accounts payable 10,740,190,881.58 6,807,637,925.32 5,183,680,120.24 Advances from customers 5,759,636,471.07 4,277,575,537.45 3,466,741,620.70 Payroll payable 880,808,485.74 712,127,644.30 376,217,646.52 Taxes payable 377,767,827.46 478,169,294.18 290,496,103.52 Interest payable 73,458,000.00 77,672,045.84 77,316,091.67 Other payables 1,689,613,940.30 1,404,722,740.89 1,607,748,312.43 Contingent liabilities 1,203,676,749.38 761,596,810.09 332,489,210.32 Non-current liabilities
within one year - 520,000,000.00 - Other current liabilities 2,699,580,446.95 1,674,674,402.50 1,065,211,123.41 Total current liabilities 35,967,832,729.60 25,493,812,016.49 19,636,345,714.08 Non-current liabilities
Long-term loans - 1,270,000,000.00 900,000,000.00 Bonds payable 1,971,184,679.89 1,967,266,759.93 1,963,348,839.97 Long-term payroll payable 27,778,000.00 26,061,000.00 33,424,000.00 Special payable 76,263,426.13 129,901,302.92 69,225,925.06 Deffered income 2,195,144,515.81 2,218,891,199.06 2,276,933,151.75 Deferred tax liabilities 55,915,125.00 23,006,625.00 20,344,125.00 Total non-current liabilities 4,326,285,746.83 5,635,126,886.91 5,263,276,041.78 Total liabilities 40,294,118,476.43 31,128,938,903.40 24,899,621,755.86Owner’s equity
Share capital 4,662,886,108.00 4,662,886,108.00 4,662,886,108.00 Capital reserves 2,831,662,835.16 3,236,352,392.88 3,236,352,392.88 Other comprehensive income317,440,375.00 130,370,875.00 115,283,375.00
Special reserves 3,127,864.50 - - Surplus reserves 2,331,443,054.00 1,816,272,976.53 1,441,483,901.26 Retained earnings 17,744,494,650.50 10,645,127,982.64 7,504,810,776.85 Totalowner’s equity 27,891,054,887.16 20,491,010,335.05 16,960,816,553.99 TOTAL LIABILITIES
ANDOWNERS’ EQUITY 68,185,173,363.59 51,619,949,238.45 41,860,438,309.85
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Notes XIV 2014 2013 Restated Operating revenue 4 52,494,653,749.04 33,236,680,670.90 Less: Operating cost 4 43,446,279,325.62 27,245,442,791.23
Business tax and surcharges 1,834,745,421.68 1,117,916,162.10
Operating expenses 3,932,029,859.75 3,126,798,393.17
General and administrative expenses 3,249,998,175.37 2,530,601,839.92
Financial expenses 49,713,585.22 90,516,587.46
Impairment loss on assets 245,849,737.11 241,584,456.51
Add: Investment income 5 8,029,395,216.04 4,514,123,981.76
Including: Investment income from
associates and joint venture 7,991,213,934.13 4,474,644,845.42
Operating profit 7,765,432,860.33 3,397,944,422.27
Add: Non-operating income 363,316,432.64 203,618,522.36
Including: gain on disposal of
non-current assets 67,589,119.50 1,613,398.14
Less: Non-operating expenses 92,611,463.33 33,524,849.01
Including: loss on disposal of
non-current assets 84,531,649.99 15,568,913.15
Total profit 8,036,137,829.64 3,568,038,095.62
Less: Income tax expense (45,795,843.15) (179,852,657.05) Net profit 8,081,933,672.79 3,747,890,752.67
Other comprehensive income, net of tax
Other comprehensive income not to be reclassified
to profit or loss in subsequent periods:
Change in net liability or assest from defined
benefit plan 588,000.00 - Other comprehensive income to be reclassified
to profit or loss in subsequent periods:
Changes in fair value from
available-for-sale financial assest 186,481,500.00 15,087,500.00 Total comprehensive income attributable
to minority interests, net of tax - - Total comprehensive income 8,269,003,172.79 3,762,978,252.67 The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES INSHAREHOLDERS’ EQUITY
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Share capital Captial reserves Other Special reserves Surplus reserves Retained earnings Totalonwer’s equity comprehensive
income
At 31 December 2013 4,662,886,108.00 3,366,723,267.88 - - 1,816,272,976.53 10,645,127,982.64 20,491,010,335.05 Add: Change in accounting policy - (130,370,875.00) 130,370,875.00 - - - - At 1 January 2014 (Restated) 4,662,886,108.00 3,236,352,392.88 130,370,875.00 - 1,816,272,976.53 10,645,127,982.64 20,491,010,335.05 Changes during the year
Total comprehensive income - - 187,069,500.00 - - 8,081,933,672.79 8,269,003,172.79 Input by investors and decrease in
capital
1.Business combination
involving entities under
common control - (404,612,234.77) - - - - (404,612,234.77) 2.Other - (77,322.95) - - - - (77,322.95) Distribition of profit
1.Pick-up of surplus reserve - - - - 515,170,077.47 (515,170,077.47) - 2.The distribution to owners - - - - - (467,396,927.46) (467,396,927.46) Special reserves
1.Provided - - - 20,569,000.00 - - 20,569,000.00 2.Ultilized - - - (20,569,000.00) - - (20,569,000.00) 3.Effecitve portion of
changes in special reserves
from joint venture - - - 3,127,864.50 - - 3,127,864.50 At 31 December 2014 4,662,886,108.00 2,831,662,835.16 317,440,375.00 3,127,864.50 2,331,443,054.00 17,744,494,650.50 27,891,054,887.16 The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES INSHAREHOLDERS’ EQUITY
Year ended 31 December 2013 (Restated)
(Expressed in Renminbi Yuan)
Share capital Captial reserves Other Special reserves Surplus reserves Retained earnings Totalonwer’s equity comprehensive
income
At 31 December 2012 4,662,886,108.00 3,351,635,767.88 - - 1,441,483,901.26 7,504,810,776.85 16,960,816,553.99 Add: Changes in accounting policy - (115,283,375.00) 115,283,375.00 - - - - At 1 January 2013 (Restated) 4,662,886,108.00 3,236,352,392.88 115,283,375.00 - 1,441,483,901.26 7,504,810,776.85 16,960,816,553.99 Changes during the year
Total comprehensive income - - 15,087,500.00 - - 3,747,890,752.67 3,762,978,252.67 Distribition of profit
1.Pick-up of surplus reserve - - - - 374,789,075.27 (374,789,075.27) - 2.The distribution to owners - - - - - (232,784,471.61) (232,784,471.61) Special reserves
1.Provided - - - 16,500,000.00 - - 16,500,000.00 2.Ultilized - - - (16,500,000.00) - - (16,500,000.00) At 31 December 2013 (Restated) 4,662,886,108.00 3,236,352,392.88 130,370,875.00 - 1,816,272,976.53 10,645,127,982.64 20,491,010,335.05 The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sale of goods or rendering
of services 44,539,407,008.87 29,826,921,364.96 Refunds of taxes 50,000,000.00 17,181,800.00 Cash received relating to other
operating activities 325,468,112.96 1,025,366,113.23 Subtotal of cash inflows 44,914,875,121.83 30,869,469,278.19 Cash paid for goods and services 30,739,741,685.24 21,005,214,115.22 Cash paid to and on behalf of employees 3,146,073,793.80 2,095,086,575.25
Cash paid for all types of taxes 3,638,206,116.33 2,066,677,520.39 Cash paid relating to other
operating activites 3,866,363,198.70 4,083,138,002.79 Subtotal of cash outflows 41,390,384,794.07 29,250,116,213.65 Net cash flows from operating activities 3,524,490,327.76 1,619,353,064.54
CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from disposal of investments 28,459,829.00 8,715,226.30
Cash received from return on investments 7,739,418,268.79 1,639,729,870.09
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 1,541,246.50 9,571,298.73 Cash received relating to other
investing activities 288,797,852.76 150,000,000.00 Subtotal of cash inflows 8,058,217,197.05 1,808,016,395.12 Cash paid for acquisition of fixed assets,
intangible assets and other long-term assets 1,903,868,435.17 2,148,441,873.38 Cash paid for acquisition of investments 40,288,000.00 1,313,853,990.00
Cash paid for acquisition of subsidiary and
other joint venture 443,384,180.36 - Cash paid relating to other
investing activities 25,406,487.47 250,000,000.00 Subtotal of cash outflows 2,412,947,103.00 3,712,295,863.38 Net cash flows from investing activities 5,645,270,094.05 (1,904,279,468.26)
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT (continued)
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2014 2013 CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from borrowings - 2,200,000,000.00 Cash received relating to other
financing activities 4,028.93 - Subtotal of cash inflows 4,028.93 2,200,000,000.00 Cash repayments of borrowings 2,990,000,000.00 1,280,000,000.00 Cash paid for distribution of dividends
or profits and for interest expenses 642,196,270.39 425,654,059.12 Subtotal of cash outflows 3,632,196,270.39 1,705,654,059.12 Net cash flows from financing activities (3,632,192,241.46) 494,345,940.88
NET INCREASE IN CASH AND CASH EQUIVALENTS 5,537,568,180.35 209,419,537.16 Add: Cash and cash equivalents
at beginning of year 3,290,584,684.00 3,081,165,146.84 CASH AND CASH EQUIVALENTS AT END OF YEAR 8,828,152,864.35 3,290,584,684.00
The notes on pages 19 to 143 form an integral part of the financial statements on pages 3 to 18.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
I CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) was established by China Changan Automobile Group (hereafter referred to as the “Changan Group”) as the individual originator on 31 October 1996. The company was set up using thegroup’s net asset relating to the operation of mini cars and engine, the shares it owned in Chongqing Changan Suzuki company limited (equal to 506,190,000 shares of the Company) and the fund raised from the issuance of 250,000,000 foreign capital stock (B shares), with total share capital of RMB756,190,000. The LegalRepresentative’s Operating License issued by Chongqing Industrial and Commercial Administrative Bureau is Yu-Jing No. 28546236-3.
With the approval of China Securities Regulatory Commission, the company initially floated on share market on 19 May 1997 by issuing 120,000,000 common shares(A share) to the public. The offering increased the total share capital to RMB 876,190,000.
On 26 June 1998, the Company issued 4 shares for each 10 shares to existing shareholders of the original 876,190,000 shares. The issuance was made from capital reserve and increased the total share capital to RMB 1,226,666,000.
On 26 May 2004, the Company offered 2 bonus shares for each 10 shares held by existing shareholders, which increased the total share capital from RMB 1,226,666,000 to RMB 1,471,999,200.
On 26 August 2004, with the approval of China Securities Regulatory Commission, the Company offered 148,850,000 common shares (A share) to the market, which increased the total share capital to RMB 1,620,849,200.
In December 2005, China South Industries Group Corporation (hereafter referred to as the “South Group”), the ultimate parent company, used the common share (850,399,200 shares) owned by its subsidiary, Changan Group, as part of the investment to establish China South Industries Motor Company (hereafter referred to as ”South Industries Motor”). The share occupied52.466% of theCompany’s total share capital. Therefore, South industries Motor became the parent company of the Company. On 30 March 2006, the transfer of share was registered by Shenzhen branch of China Securities Depository and Clearing Corporation limited.
In May 2006, South Industries Motor issued 3.2 bonus shares for each 10 shares to the shareholders at the implementation date of reformation of non-tradable shares for their non-tradable shares according to the ”Reply of the problems related to the reformation of non-tradable shares of Chongqing Changan Automobile Co., Ltd.”(2006[442] Guo Zi Chan Quan) issued by the State-owned Assets Supervision and Administration Commission of State Council and the relatedshareholder’s meeting. After the reformation of non-tradable shares, South Industries Motor occupied45.548% of equity through 738,255,200 common shares. On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders, which increased the total share capital from RMB 1,620,849,200 to RMB 1,945,019,040.
On 30 May 2008, the Company issued 2 shares for each 10 shares owned by existing shareholders. The issuance was made from capital reserve and increased the total share capital to RMB 2,334,022,848.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
I CORPORATE INFORMATION (continued)
On 3 March 2009, the secondary temporary shareholder meeting was held. The board resolution about‘the reacquisition of foreign capital stock listed inChina’ was approved in the meeting. For the buyback period ended on 3 March 2010, the company repurchased 8,365,233 shares in total, equal to0.3584% of total capital. On 1 July 2009, with the approval of State Administration for Industry and Commercial, South industries Motor, the parent company changed its name to China Changan Automobile Industry (Group) Co., Ltd. (hereafter referred to as the “China Changan”).
With the approval of China Securities Regulatory Commission on 14 January 2011, the Company issued 360,166,022 common shares (A share), which increased the total share capital to RMB 2,685,823,637. After the completion of the issuance, China Changan holds 1,163,787,489 shares of the Company's common stock, and the held equity interest decreased to43.33%.
On 18 May 2011, the Company issued 4 bonus shares for each 10 shares and issued 4 shares to 10 shares from capital reserve to existing shareholders. After this issuance, the total share capital has been increased to RMB 4,834,482,546.
On 21 December 2011, the first temporary shareholder meeting was held. The board resolution about‘the reacquisition of foreign capital stock listed inChina’ was approved in the meeting. For the buyback period ended on 20 March 2012, the company repurchased 171,596,438 shares in total, equal to3.55% of total capital. On 30 March 2012, the company cancelled the share and the share capital decreased to RMB 4,662,886,108. On 24 August 2012, the Company obtained a new business license with registration number of 500000000005061.
From September to December 2013, China Changan, the parent company of the Company, continuously sold 181,260,000 shares in total in secondary market. As at 31 December 2013, China Changan held 1,913,557,480 shares of the Company's ordinary share, with shares proportion decreasing to41.04%.
During 2014, China Changan, the parent company of the Company, continuously sold 89,962,264 shares in total in secondary market. As at 31 December 2014, China Changan holds 1,823,595,216 shares of theCompany’s ordinary shares, with shares proporation decreasing to39.11%.
As at 31 December 2014, theCompany’s parent company and ultimate controlling company is China Changan and South Group respectively.
The Company and its subsidiaries (hereafter referred to as the “Group”) mainly focus on the manufacturing and sales of automobile (include cars), automobile engine, spare parts.
According to the Articles of Association, the financial statements, which has been approved by the board of directors on 15 April 2015, was submitted to general meeting of shareholders for approval.
The scope of consolidation in the consolidated financial statement is determined based on control. The changes of the scope please refer to Notes VI.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
II BASIS OF PREPERATION
1. Basis of preperation
The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard and the specific standards issued and modified subsequently, and the implementation guidance, interpretations and other relevant provisions issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”).
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for certain financial instruments. If the assets are impaired, the corresponding provisions should be made accordingly. The assets are recorded at assessed value by State-owned Assets Supervision and Administration Commission of the State Council, which are invested into the Group in the reforming period.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Adoption of revised standards / new standards
From January to March 2014, the Ministry of Finance issued the Accounting Standards for Business Enterprises No.39 - Fair Value Measurement, Accounting Standards for Business Enterprises No.40 - Joint Venture Arrangements, Accounting Standards for Business Enterprises No.41 - Disclosure of Interests in Other Entities, and revised the Accounting Standards for Business Enterprises No.2 - Long-term Equity Investments, Accounting Standards for Business Enterprises No.9 - Employee Compensation, Accounting Standards for Business Enterprises No.30 - Presentation of Financial Statements, and Accounting Standards for Business Enterprises No.33 - Consolidated Financial Statements. The effective date of the above 7 accounting stantdards was 1 July 2014, but enterprises listed oversea are encougaged to implement these standanrds in advance. In June 2014, the Ministry of Finance had revised the Accounting Standards for Business Enterprises No.37- Presentation of Financial Instruments, which shall be applied in the financial reports for 2014 and subsequent periods.
As regarded to the financial statement, the changes of theGroup’s accounting policies caused by above changes of the accounting standards have been made according to the provisions on the issues concerning the linkage of the old and new accounting stantands, and the comparative data has been adjusted retrospectively.
The main influences of the above retrospective adjustment to financial statement both in 2014 and 2013 are as follow:
The Group
2014
Before adoption Adopted Accounting Standards Afer adoption
Beginning balance CAS No2 CAS No30 Beginning balance Long-term
equity investments 12,466,481,788.64 ( 108,809,274.00) - 12,357,672,514.64
Available-for-sale
financial assets 257,319,416.00 108,809,274.00 - 366,128,690.00
Payroll payable 817,068,089.52 - 3,528,000.00 820,596,089.52 Other current liabilities 1,900,629,102.12 - (5,002,000.00) 1,895,627,102.12 Long-term payroll payable - - 49,327,000.00 49,327,000.00 Deffered income - - 2,726,487,939.90 2,726,487,939.90 Other non-current liabilities 2,774,340,939.90 - (2,774,340,939.90) - Foreign currency reserve (14,890,520.84) - 14,890,520.84 - Capital reserves 3,854,086,004.99 - (186,879,883.22) 3,667,206,121.77 Other comprehensive income - - 171,989,362.38171,989,362.38
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Adoption of revised standards / new standards
The Group
2013
Before adoption Adopted Accounting Standards Afer adoption
Beginning balance CAS No2 CAS No30 Beginning balance Long-term
equity investments 7,594,311,455.02 (108,809,274.00) - 7,485,502,181.02
Available-for-sale
financial assets 233,814,100.00 108,809,274.00 - 342,623,374.00
Payroll payable 448,002,210.04 - 4,587,000.00 452,589,210.04 Other current liabilities 1,518,516,938.67 - (6,088,000.00) 1,512,428,938.67 Long-term payroll payable - - 61,479,000.00 61,479,000.00 Deffered income - - 2,664,814,288.58 2,664,814,288.58 Other non-current liabilities 2,724,792,288.58 - (2,724,792,288.58) - Foreign currency reserve (16,160,551.29) - 16,160,551.29 - Capital reserves 3,764,463,971.28 - (167,475,896.22) 3,596,988,075.06 Other comprehensive income - - 151,315,344.93151,315,344.93
The Company
2014
Before adoption Adopted Accounting Standards Afer adoption
Beginning balance CAS No2 CAS No30 Beginning balance Long-term
equity investments 13,767,197,201.37 (108,809,274.00) - 13,658,387,927.37 Available-for-sale
financial assets 176,257,500.00 108,809,274.00 - 285,066,774.00 Payroll payable 710,331,644.30 - 1,796,000.00 712,127,644.30 Long-term payroll payable - - 26,061,000.00 26,061,000.00 Other current liabilities 1,677,944,402.50 - (3,270,000.00) 1,674,674,402.50 Deffered income - - 2,218,891,199.06 2,218,891,199.06 Other non-current liabilities 2,243,478,199.06 - (2,243,478,199.06) - Capital reserves 3,366,723,267.88 - (130,370,875.00) 3,236,352,392.88 Other comprehensive income - - 130,370,875.00130,370,875.00
2013
Before adoption Adopted Accounting Standards Afer adoption
Beginning balance CAS No2 CAS No30 Beginning balance Long-term
equity investments 8,885,998,867.75 (108,809,274.00) - 8,777,189,593.75
Available-for-sale
financial assets 158,507,500.00 108,809,274.00 - 267,316,774.00
Payroll payable 374,013,646.52 - 2,204,000.00 376,217,646.52 Long-term payroll payable - - 33,424,000.00 33,424,000.00 Other current liabilities 1,068,916,123.41 - (3,705,000.00) 1,065,211,123.41 Deffered income - - 2,276,933,151.75 2,276,933,151.75 Other non-current liabilities 2,308,856,151.75 - (2,308,856,151.75) - Capital reserves 3,351,635,767.88 - (115,283,375.00) 3,236,352,392.88 Other comprehensive income - - 115,283,375.00115,283,375.00
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
III SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at 31 December 2014 and the financial results and the cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
TheGroup’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan. Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of the reporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
A business combination is a transaction or event that brings together two or more separate entities into one reporting entity. Business combinations are classified into business combinations involving entities under common control and business combinations involving entities not under common control.
Business combination involving entities under common control
A business combination involving entities under common control is a business combination in which all of the combining entities are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For a business combination involving entities under common control, the party which, on the combination date, obtains control of another entity participating in the combination is the acquiring party, while that other entity participating in the combination is a party being acquired. Combination date is the date on which the acquiring party effectively obtains control of the party being acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common control shall be measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
4. Business combination (continued)
Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the combining entities are not ultimately controlled by the same party or parties both before and after the combination. For a business combination involving entities not under common control, the party that, on the acquisition date, obtains control of another entity participating in the combination is the acquirer, while that other entity participating in the combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
The acquirer shall measure theacquiree’s identifiable assets, liabilities and contingent liabilities acquired in the business combination at their fair values on the acquisition date.
Where the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair value of theacquirer’s previously held equity interest in the acquiree exceeds theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the difference shall be recognized as goodwill and measured at cost less any accumulated impairment losses. Where the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair value of theacquirer’s previously held equity interest in the acquiree is less than theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the difference shall be accounted for according to the following requirements: (i) the acquirer shall reassess the measurement of the fair values of theacquiree’s identifiable assets, liabilities and contingent liabilities and measurement of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair value of theacquirer’s previously held equity interest in the acquiree; (ii) if after that reassessment, the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair value of theacquirer’s previously held equity interest in the acquiree is still less than theacquirer’s interest in the fair values of theacquiree’s identifiable net assets, the acquirer shall recognize the remaining difference immediately in the income statement for the current period.
5. Consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control, and includes the financial statements of the Company and its subsidiaries for the year ended 31 December 2014. A subsidiary is an enterprise or entity that is controlled by the Group (including an enterprise, seperable part of the investee and a structured entity controlled by the Company).
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities, the exceeded part will still deduct the equity belong to minorities.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
5. Consolidated financial statements (continued)
With respect to subsidiaries acquired through business combinations involving entities not under common control, the operating results and cash flows of the acquiree should be included in the consolidated financial statements, from the day that the Group gains control, till the Group ceases the control of it. While preparing the consolidated financial statements, the acquirer should adjust thesubsidiary’s financial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities recognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under common control, the operating results and cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in which the combination occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more control elements, then the Group should reassess whether has taken control of the investee.
6 Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint venture arrangements, relevant assets and liabilities of which are enjoyed and assumed by the joint venturers. Joint ventures refer to those joint venture arrangements, only the right to net assets of which is enjoyed by the joint venturers.
Any joint venturer shall recognize the following items related to its share of benefits in the joint operation and conduct accounting treatment in accordance with relevant accounting standards for business enterprises: assets it solely holds and its share of jointly-held assets based on its percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage; incomes from sale of output enjoyed by it from the joint operation; incomes from sale of output from the joint operation based on its percentage; and separate costs and costs for the joint operation based on its percentage.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are short-term, highly liquid investments held by the Group, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange rate quoted by thePeople’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactions and exchange of currencies, except for those relating to foreign currency borrowings specifically for construction and acquisition of fixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost remain to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functional currency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchange rate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the current income or other comprehensive income account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies are translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balance sheet date;shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates ruling at the transaction dates; income and expense in income statement are translated into Renminbi at spot exchange rates on transaction occurrence; total difference between translated assets and translated liabilities andshareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translation difference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in proportion to the settlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailing on the transaction month during which the cash flows occur. The amount of the effect on the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the cash flow statement.
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to the contractual provision of the instrument.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar financial assets), be written off from the account and balance sheet , when the following conditions are met:
(1) the rights to receive cash flows from the asset have expired;
(2) the Group transferred the rights to receive cash flows from the asset, or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the underlying obligation of a financial liability has been discharged or cancelled or has expired, the financial liability is derecognized. If an existing financial liability is replaced by the same creditor, with a new financial liability that has substantially different terms, or if the terms of an existing financial liability are substantially revised, such replacement or revision is accounted for as the derecognition of the original liability and the recognition of a new liability, and the difference thus resulted is recognized in profit or loss for the current period.
When buy or sell financial instruments under a normal way, financial instruments are recognized or derecognized according to the transaction date accounting. A normal way to buy or sell financial instruments refers to, according to the contract terms, receive or deliver financial instruments within the period as required by legal regulation or generally accepted guidelines. Transaction date refers to the date when the Group committed to buy or sell financial instruments.
Classification and measurement of financial assets
Financial assets are, on initial recognition, classified into the following categories: financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, available-for-sale financial assets, and the derivatives designated as effective hedging instrument. A financial asset is recognized initially at fair value. In the case of financial assets at fair value through profit or loss, relevant transaction costs are directly charged to the profit and loss of the current period; transaction costs relating to financial assets of other categories are included in the amount initially recognized.
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designated upon initial recognition as at fair value through profit or loss. A financial asset held for trading is the financial asset that meets one of the following conditions: the financial asset is acquired for the purpose of selling it in a short term; the financial asset is a part of a group of identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the enterprise recently manages this group for the purpose of short-term profits; the financial asset is a derivative, except for a derivative that is designated as effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair value cannot be reliably measured. For such kind of financial assets, fair values are adopted for subsequent measurement. All the realized or unrealized gains or losses on these financial assets
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
are recognized in profit or loss for the current period. Dividend or interest income related to financial assets at fair value through profit or loss is recognized in profit or loss for the current period.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind of financial assets are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss for the current period.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such kind of financial assets are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss for the current period.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as available for sale or are not classified as the above financial assets. After initial recognition, available-for-sale financial assets are measured at fair value. The premium/discount is amortized using effective interest method and recognized as interest income or expense. A gain or loss arising from a change in the fair value of an available-for-sale financial asset is recognized in other comprehensive income as a component of capital reserve, except for impairment losses and foreign exchange gains and losses resulted from monetary financial assets, until the financial asset is derecognized or determined to be impaired, at which time the accumulated gain or loss previously recognized in capital reserve is removed from capital reserve and recognized in profit or loss for the current period. Interests and dividends relating to an available-for-sale financial asset are recognized in profit or loss for the current period.
The equity investment instruments, for which there is no quoted price in active market and whose fair value cannot be reliably measured, shall be measured at cost.
Classification and measurement of financial liabilities
TheGroup’s financial liabilities are, on initial recognition, classified into the following categories: financial liabilities at fair value through profit or loss, other financial liabilities, and the derivatives designated as effective hedging instrument. For financial liabilities at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the initial recognition amounts.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those designated as at fair value through profit or loss. A financial liability held for trading is the financial liability that meets one of the following conditions: the financial liability is assumed for the purpose of repurchasing it in a short term; the financial liability is a part of a group of identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the enterprise recently manages this group for the purpose of short-term profits; the financial liability is a derivative, except for a derivative that is designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price form an active market) whose fair value cannot be reliably measured. For such kind of financial liabilities, fair values are adopted for subsequent measurement. All the realized or unrealized gains or losses on these financial liabilities are recognized in profit or loss for the current period.
Other financial liabilities
After initial recognition, these financial liabilities are measured at amortized cost using the effective interest method.
Offsetting of financial instrumentsts
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
Impairment of financial assets
The Group assesses the carrying amount of a financial asset, at the balance sheet date. If there is objective evidence that the financial asset is impaired, the Group makes provision for the impairment loss. Objective evidence that a financial asset is impaired is evidence arising from one or more events that occurred after the initial recognition of the asset and that event has an impact on the estimated future cash flows of the financial asset which can be reliably estimated.
Financial assets carried at amortized cost
When the financial assets carried at amortized cost are impaired, the carrying amount of the financial asset shall be reduced to the present value of the estimated future cash flow (excluding future credit losses that have not been incurred). The amount of reduction is recognized as an impairment loss in the income statement. Present value of estimated future cash flow is discounted at the financialasset’s original effective interest rate and includes the value of any related collateral.
If a financial asset is individually significant, the Group assesses the asset individually for impairment, and recognizes the amount of impairment in the income statement if there is objective evidence of impairment. For a financial asset that is not individually significant, the Group can include the asset in a group of financial assets with similar credit risk characteristics and collectively assess them for impairment. For financial assets that are not impaired upon individual tests (including financial assets that are individually significant or insignificant), impairment tests
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
should be conducted on them again by including them in the group of financial assets. Assets for which an impairment loss is individually recognized will not be included in a collective assessment of impairment. If, subsequent to the recognition of an impairment loss on a financial asset carried at amortized cost, there is objective evidence of a recovery in value of the financial asset which can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed and recognized in the income statement. However, the reversal shall not result in a carrying amount of the financial asset that exceeds what the amortized cost would have been had the impairment not been recognized at the date the impairment is reversed.
Available-for-sale financial assets
When there is objective evidence that the asset is impaired, the cumulative loss from declines in fair value that had been recognized directly in capital reserve are removed from equity and recognized in the income statement. The amount of the cumulative loss that is removed from capital reserves and recognized in the income statement (net of any principal repayment and amortization) and current fair value, less any impairment loss on that financial asset previously recognized in the income statement.
In the case of equity investments classified as available for sale, objective evidence would include a significant or prolonged decline in the fair value of an investment below its cost. The determination of what is “significant” or ''prolonged” requires judgement. “Significant” is evaluated against the original cost of the investment and “prolonged” against the period in which the fair value has been below its original cost. Impairment losses on equity instruments classified as available for sale are not reversed through the income statement. Increases in their fair value after impairment are recognised directly in other comprehensive income.
The determination of what is “significant” or “prolonged” requires judgement. In making this judgement, the Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost.
Financial assets carried at cost
If objective evidence shows that the financial assets carried at cost are impaired, the difference between the present value discounted at the prevailing rate of return of similar financial assets and the book value of the financial asset are provided as a provision and recognized in the current income statement. The impairment loss recognized cannot be reversed.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group derecognizes the financial asset; and if the Group retains substantially all the risks and rewards of the financial asset, the Group does not derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Group determines whether it has retained control of the financial asset. In this case: (i) if the Group has not retained control, it derecognizes the financial asset and recognize separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii) if the Group has retained control, it continues to recognize the financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually forprovision：
|||
|-|-|
||Accounts receivable balance greater than RMB15 million duefrom non-related parties|
|Criterion for individually significant items||
||A provision of the difference between recoverable amount andbook value is recognized based on individually analysis|
|Method for provision||

 (2) Accounts receivable analyzed by credit risk charactristics group forprovision：
|||
|-|-|
|Criterion for group||
||Accounts receivable due from non-related parties other than individuallysignificant items or insignificatntly but analyzed individually for provision|
|Group 1||
|Group 2|Accounts receivable due from related parties|
|Method for the provision of group||
|Group 1|Making provision according to aging analysis|
||A provision of the difference between recoverable amount and book value isrecognized based on individually analysis.|
|Group 2||

Group 1, the provision analyzed according to aging analysis:
|||||||
|-|-|-|-|-|-|
||Aging||Accounts receivable||Other receivables|
||||Provision percentage (%)||Provision percentage (%)|
|Within 1 year||||||
|Within 6 months||0||0||
|6 to 12 months||5||5||
|1 to 2 years||10||10||
|2 to 3 years||30||30||
|3 to 4 years||50||50||
|4 to 5 years||80||80||
|Above 5 years||100||100||

 (3) Accounts receivable which is individually insignificant but analyzed individually for provision
|||
|-|-|
||There is objective evidence that the accounts receivable duefrom non-related parties is impaired and the futurerecoverable possibility is little.|
|Criterion for individually analysis for provision||
||A provision of the difference between recoverable amountand book value is recognized individually.|
|Method for provision||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
11. Inventories
(1) Classification of inventory
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials, low-value consumables and spare parts.
(2) Measurement of delivered inventory
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventory to its present location and condition.
Weighted average method is assigned to the determination of actual costs of inventories. One-off writing off method is adopted in amortization of low-value consumables.
(3) Net realizable value of inventory and inventory provision
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If the cost is higher than the net realizable value, provision for the inventory should be made through profit or loss. If factors that resulted in the provision for the inventory have disappeared and made the net realizable value higher than their book value, the amount of the write-down should be reversed, to the extent of the amount of the provision for the inventory, and the reversed amount should be recognized in the income statement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories according to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices, the provision for loss on decline in value of inventories should be made by category.
(4) Counting method of inventory
The Group applies a perpetual counting method of inventory.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
12. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
The long-term investments are initially recorded at costs on acquisition. Long-term investments acquired from business combination under common control shall be initially measured at the carrying value of the held interest of the party being acquired; The difference between the initial meassued amounts and the book value of consideration, adjust the capital reserves (if the capital reserve is insufficient to be offset, retained earnings should be adjusted); Long-term investments acquired from business combination not under common control shall be initially measured at the cost (or, the sum of the cost and the carrying value of the previously held equity interest in the acquire for the business combination achieved by stages), which include the fair value of the consideration paid, the liabilities beard and the fair value of issued equity instrument; the other comprehensive income produced from the investment before the acquisition should be transferred into the current year investment income on disposal. Long-term investments acquired not from business combination are initially measured at 1)the consideration together with the cost necessary incurred; 2) the fair value of the equity instruments; and 3) the consideration agreed in the investment agreement by the investors, otherwise the agreed consideration were not fair.
The Company adopted cost method to account for long-term investments in the subsidiaries in the separate financial statements of the Company. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial investment. The cost of long-term equity investment should be adjusted in case of additional investment or disinvestments. When cash dividends or profits are declared by the invested enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has jointly control, or significant influence on the investee enterprise. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers). Significant influence is the power to participate in the financial and operating policy decisions of an economic activity but is not control or joint control over those policies.
Under equity method, when the initial investment cost of a long-term equity investment exceeds the investingenterprise’s interest in the fair values of theinvestee’s identifiable net assets at the acquisition date, the difference is accounted for as an initial cost. As to the initial investment cost is less than the investingenterprise’s interest in the fair values of theinvestee’s identifiable net assets at the acquisition date, the difference shall be charged to the income statement for the current period, and the cost of the long-term equity investment shall be adjusted accordingly.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
12. Long-term equity investments (continued)
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as a gain or loss on investment, and also increases or decreases the carrying amount of the investment. When recognizing its share in the net profit or loss of the investee entities, the Group should, based on the fair values of the identifiable assets of the investee entity when the investment is acquired, in accordance with theGroup’s accounting policies and periods, after eliminating the portion of the profits or losses, arising from internal transactions with joint ventures and associates, attributable to the investing entity according to the share ratio (but losses arising from internal transactions that belong to losses on the impairment of assets, should be recognized in full), recognize the net profit of the investee entity after making appropriate adjustments. The book value of the investment is reduced to the extent that theGroup’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However, the share of net loss is only recognized to the extent that the book value of the investment is reduced to zero, except to the extent that the Group has incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equity investment for other changes inowners’ equity of the investee enterprise (other than net profits or losses), and include the corresponding adjustments in equity, which should be realized through profit or loss in subsequent settlement of the respective long-term investment.
On settlement of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shall be recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement of the original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would be required if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing the equity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss, other comprehensive income and profit distribution, the investing party shall be transferred to the income statement for the current period. If the remaining equities still be measured under the equity method, accumulative change previously recorded in other comprehensive income shall be transferred to current profit or loss, in measurement on the same basis as the invested entity had directly disposed of the assets or liabilities related thereto. The income or loss recorded in the equity directly should been transferred to the current income statement on settlement of the equity investment on the disposal proportion.
13. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land use right, land use right which is held and prepared for transfer after appreciation, and rented building. The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an investment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate are likely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be included in the current profits and losses upon occurrence.
The group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under straight-line method.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
14. Fixed assets
(1) Recognition of fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the cost of the fixed asset, and the book value of the component of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall be recognized in the income statement in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price, relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use, such as delivery and handling costs, installation costs and other surcharges. (2) Depreciation method of fixed assets
Fixed assets are depreciated on straight-line basis. The estimated useful lives, estimated residual values and annual depreciation rates for each category of fixed assets are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Yearly deprecation rate|
||Category||Deprecation period||Residual rate (%)|||
||||||||(%)|
|Buildings||20 to 35 years||3%||2.77%-4.85%||
|Machinery (Note)||5 to 20 years||3%||4.85%-19.40%||
|Vehicles||4 to 12 years||3%||8.08%-24.25%||
|Others||3 to 21 years||3%||4.62%-32.33%||
|Note: the moulds in machinery should be depreciated in units-of-production method.||||||||

(3) Others
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at the end of each year and makes adjustments if necessary.
15. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessary construction expenditure incurred during the construction period, borrowing costs that should be capitalized before the construction reaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
16. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds. Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized, otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item of property, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use of sale.
The capitalization of borrowing costs are as part of the cost of a qualifying asset shall commence when: 1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized in the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset over and above the amounts of specific-purpose borrowings.
During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other than procedures necessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over three months, the capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense and charged to the income statement of the current period, till the construction or manufacture of the assets resumes.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
17. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired in a business combination is the fair value as at the date of acquisition, if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economic benefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life Land use right 22 to 50 years Software 2 years Trademark 10 years Non-patent technology 5 years Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respect to self-developed properties, the corresponding land use right and buildings should be recorded as intangible and fixed assets separately. As to the purchased properties, if the reasonable allocation of outlays cannot be made between land and buildings, all assets purchased will be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during the estimated useful life. For an intangible asset with a finite useful life, the Group reviews the estimated useful life and amortization method at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with its carrying amount annually, whenever there is an indication that the intangible asset may be impaired. An intangible asset with an indefinite useful life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset has finite useful life, the accounting treatment would be in accordance with the intangible asset with finite useful life.
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
18. Research and development expenditures (continued)
The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally; (d) it is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of sufficient technologies, financial resources and other resources; and (e) the development expenditures of the intangible assets can be reliably measured. Expenses incurred thatdon’t meet the above requirements unanimously should be expensed in the income statement of the reporting period. The Group discriminates between research and development stage with the condition that the project research has been determined, in which the relevant research complete all the fractionalization of products measurements and final product scheme under final approval of management. The expenditures incurred before project-determination stage is charged to the current income, otherwise it is recorded as development cost.
19. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been paid and should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortization.
20. Contingent liabilities
Except contingent liability recognized in a business combination, the Group recognizes an contingent liability when the obligation arising from a contingency meets the following conditions:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performance of relevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and time value of money relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objective evidence showing that the book value cannot reflect the present best estimate, the book value should be adjusted according to the best estimate.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
21. Revenue
Revenue is recognized only when an inflow of economic benefits is probable, the amount of which can be reliably measured, and all of the following conditions are qualified.
Revenue from the sale of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group retains neither continuing management involvement to the degree usually associated with ownership nor effective control over the goods sold; and the amount of revenue can be measured reliably. The proceeds earned from sales of goods are determined based on the amount received or receivable as stipulated in the contract or agreement, otherwise the amount is not fair; If the amount received or receivable as stipulated in the contract or agreement is collected in a defer method, it includes the financing elements and should be determined according to the fair value of the amount received or receivable as stipulated in the contract or agreement.
Revenue from the rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably at the balance sheet date, revenue associated with the transaction is recognized using the percentage of completion method, or otherwise, the revenue is recognized to the extent of costs incurred that are expected to be recoverable. The outcome of a transaction involving rendering of services can be estimated reliably when all of the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow into the Group; the stage of completion of the transaction can be measured reliably; and the costs incurred and to be incurred for the transaction can be measured reliably. The Group determines the stage of completion of a transaction involving the rendering of services by using the proportion of services performed to date to the total services to be performed. The total amount of revenue earned from rendering service are determined based on the amount received or receivable as stipulated in the contract or agreement, otherwise the amount is not fair.
Interest income
It should be measured based on the length of time for which theGroup’s cash is used by others and the applicable effective interest rate.
Royalty income
Royalty income is recognized according to the agreed time and method by both parties in related contracts. Rental income
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over the lease term.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
22. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached to the grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grants are accounted for at fair value. If there is no reliable fair value available, the grants are accounted for at nominal amount.
A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shall be recognized as the government grant related to assets. A government grant which is not specified by the government documents shall be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and construct the long-term assets shall be recognized as the government grant related to assets.
The other government grant shall be recognized as the government grant related to gain. A grant relating to income, which as compensation for future costs, is recognized as deferred income initially, and as income when the related cost incurs. The grant as compensation for costs already incurred should be recognized as income for the current period. A grant relating to assets is recognized as deferred income initially, and as income evenly among the useful life of the related assets. The grant accounted for at nominal amount is recognized as income for the current period.
23. Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. An operating lease is a lease other than a finance lease.
The Group recording the operating lease as a lessee
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and either included in the cost of another related asset or charged to the income statement for the current period.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over the lease term.
24. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for services provided by the employees or termination of labor relation. Employee compensation includes short-term compensation and post-employment benefits. The benefits offered by enterprises to the spouse, children, the dependants of the employee, the family member of deceased employee and other beneficiaries are also employee compensation.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
24. Employee benefits (contined)
Short-term employee salaries
During the accounting period of employee rendering service, the actural employees salaries and are charged to the statement of profit or loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local government and the relevant expenditure, is recognized, when incurred, in the costs of relevant assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. The benefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the consolidated statement of financial position with a corresponding debit or credit to retained profits through other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that the Group recognises restructuring-related costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises the following changes in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or loss by function:•service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements;net interest expense or income
Termination benefits
Termination benefits are recognised at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises restructuring costs involving the payment of termination benefits. Other long-term employee benefits
Other long-term employee benefits provided to employee were recognized and measured as other long-term employee benefits net liabilities or net assets according to relevant post-employement rules. While subsequent variations are charged to the statement of profit or loss or the cost of relevant assets.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
25. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include in the income statement for the current period, except to the extent that the tax arises from a business combination or if it relates to a transaction or event which is recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, and temporary differences between the carrying amounts and the tax bases of items, the tax bases of which can be determined for tax purposes, but which have not been recognized as assets and liabilities, deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction which contains both of the following characteristics: the transaction is not a business combination and at the time of the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in jointly-controlled enterprises, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, according to the requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balance sheet date, to recover the assets or settle the liabilities.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
25. Income taxes (continued)
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable income cannot be generated to use the tax benefits of deferred tax assets, the book value of deferred tax assets should be reduced. When it is probable that sufficient taxable income can be generated, the amount of such reduction should be reversed. When it is probable that sufficient taxable income can be generated, the amount of such reduction should be reversed.
26. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory, deferred income taxes, and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication exists that an asset may be impaired, the Group estimates the recoverable amount of the asset and performs impairment tests. Goodwill arising from a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at the end of every year, irrespective of whether there is any indication that the asset may be impaired. An intangible asset which is not ready for its intended use is tested for impairment at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow expected to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which the asset belongs. Identification of an asset group is based on whether major cash flows generated by the asset group are independent of the cash flows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is reduced to the recoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for the current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is allocated, on a reasonable basis, to related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to each of the related sets of asset groups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able to benefit from the synergies of the business combination and shall not be larger than a reportable segment determined by the Group.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
26. Impairment of assets (continued)
When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there is any indication of impairment, the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any. Thereafter, the Group tests the asset group or set of asset groups including goodwill for impairment, the carrying amount (including the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amount of the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of asset groups, and then eliminated by the book value of other assets according to the proportion of the book values of assets other than the goodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
27. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
28. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement, while be recognized as special reserve. When using safety fund, it shall be distinguished whether it will form fixed assets or not. The expenditure shall write down the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expected conditions for use, and write down the special reserve while recognizing accumulated depreciation with the same amount.
29. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a marketparticipant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
29. Fair value measurement (continued)
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1– based on quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2– based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly; Level 3– based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
30. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amounts and disclosures of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the balance sheet date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amounts of the assets or liabilities affected in the future.
Judgments
In the process of applying theGroup’s accounting policies, management has made the following judgments which have significant effect on the financial statements:
Operating leases - as lessor
The Group has entered into commercial property leases on its investment property portfolio. The Group has determined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of these properties which are leased out on operating leases. Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated uncertainty, which may result in the significant adjustments to the book value of the subsequent accounting period, are as the following:
Impairment of available-for-sale
The Group classifies certain assets as available for sale and recognises movements of their fair values in equity. When the fair value declines, management makes assumptions about the decline in value to determine whether there is an impairment that should be recognized in the income statement.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates (continued)
Impairment of non-current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication that non-current assets other than financial assets may be impaired. If there is any sign of possible assets impairment, the assets concerned should be subject to impairment test. When the carrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset, the asset is considered impaired. The fair value minus the disposal expenses is determined by reference to the recent market transactions price or observed market price less any directly attributable expenditure for disposing. When making an estimate of the present value of the future cash flow of an asset, the Group should estimate the future cash flows of the asset or the relevant assets group, with the appropriate discount rate selected to reflect the present value of the future cash flows.
Bad debt provisions
Provisions are made under the allowance method. For each individually significant receivable, the impairment test should be conducted individually. Where there is evidence that indicates impairment, the loss should be recognized with the respective provision accrued, equaling to the difference between the present value of the future cash flows and the book value of receivables. For other receivables concerned, management should accrue the general provisions, along with the receivables individually tested while no impairment incurred, taking in account the collectability.
Inventory impairment based on the net realizable value
According to accounting policy, inventories shall be measured at the lower of cost and the net realizable value. Provision for inventories is recognized in the income statement when the cost is higher than the net realizable value and when the inventories are obsolete and slow-moving. The Group will reassess whether a single inventory is obsolete, slow-moving or whether the net realizable value is lower than theinventories’ cost at end of each year.
Development expenditures
When determining the capitalization amount, management should make assumptions such as the expected cash flows of the assets related, the applicable discount rate and expected benefit period.
Deferred tax assets
The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible temporary differences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary differences. Enormous accounting judgments, as well as the tax planning are compulsory for management to estimate the time and amount of prospective taxable profits and thus determine the appropriate amount of the deferred tax assets concerned.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates (continued)
Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based on certain pre-determined conditions. Management estimates the related warranty claims based on historical warranty claim information including level of repairs and returns as well as recent trends that might suggest that past cost information may differ from future claims. Factors that could impact the estimated claim information include the success of theGroup’s quality controls, as well as parts and labour costs. Any increase or decrease in the provision would affect profit or loss in future years.
Depreciation and amortization
TheGroup’s management determines the estimated useful lives and residual value of fixed assets and intangible assets. This estimate is based on the historical experience of actual useful lives of fixed assets and intangible assets of similar nature and functions. Management will increase the depreciation and amortization charges where useful lives are less than previously estimated.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
IV TAXES
1. The major categories of taxes and surcharges
||||||
|-|-|-|-|-|
|Categories of taxes and surcharges||Basis of tax||Tax rate|
||Levy on the taxable sales and rendering of services,deducted the deductible input VAT.||6% or 17%||
|Value added tax (“VAT”)|||||
|Consumption tax|Taxable sales||1%,3% or5%||
|Business tax|Taxable sales||5%||
|City maintenance and construction tax|The turnover taxes paid||5% or7%||
|Educational surcharge|The turnover taxes paid||3%||
|Local educational surcharge|The turnover taxes paid||2%||
|Corporate income tax|Taxable income||15% or25%||

 2. Tax benefits
In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western Regions (Cai Shui[2011] No. 58) collectively issued by the ministry of Finance, the Customs General Administration and the National Taxation Bureau of PRC, from 1 January 2011 to 31 December 2020, enterprises located in the Western Region and engaged in encouraged business would be entitled to a preferential CIT rate of15%. The above-mentioned enterprises encouraged industries shall satisfy two criteria of enterprises whose principal business are in accordance with Catalogue of Encouraged Industries in the Western Region, and the revenue should account for more than70% of the total revenue. According to the Catalogue of Encouraged Industries in Western Region issued on 20 August 2014 by the National Development and Reform Commission, the business operations of the Company and Chongqing Changan Special Automobile Co., Ltd. (the “Changan Special Sales”) fall within the the encouraged industries listed in the catalogue of encouraged industries in the western region of China, and majority of the revenue are from the industries listed in the catalogue, which reaches the requirement to enjoy the preferential CIT rate. At present, the Company and Changan Special Sales are filing to enjoy the preferential CIT to in-charge tax authority, and the CIT of the Company and Changan Special Sales were currently accrued at the rate of15% in 2014 with permission of the in-charge tax authority.
As at 4 November 2011, in accordance to Circular of the Administrative Measures for the Certification of New and High Technology Enterprises (Guo Ke Fa Huo[2008] No. 172) and Circular of the Working Guidance on the Recognition of Hi-tech Enterprises (Guo Ke Fa Huo[2008] No. 362), the subsidiaries, Hebei Baoding Changan Bus Co., Ltd. and Hebei Changan Automobile Co., Ltd. were recognized as Hi-tech enterprises, effective for three years from recognition date. In accordance to Circular of the State Administration of Taxation on Issues Concerning the Administration Of Reduction or Exemption of Enterprise Income Tax (Guo Shui Fa[2008] No. 111), the enterprises with hi-tech certification would be entitled to a tax preference of15%. For the year ended 31 December 2014, the enterprise income tax of Hebei Baoding Changan Bus Co., Ltd. and Hebei Changan Automobile Co., Ltd. were accrued at the rate of15%.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
V NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash
||||||
|-|-|-|-|-|
||Item||2014|2013 (Restated)|
|Cash||29,174.13||92,359.69|
|Cash at bank||9,362,824,743.58||3,942,849,501.87|
|Other cash||330,229,580.07||592,884,110.99|
||Total|9,693,083,497.78||4,535,825,972.55|

 As at 31 December 2014, the book value of restricted cash and cash equivalents is RMB330,229,580.07 (As at 31 December 2013: RMB 592,884,110.99), which was mainly restricted for the issuance of acceptance bill.
As at 31 December 2014, the cash at bank oversea is equivalent to RMB48,914,915.75 (As at 31 December 2013: RMB22,606,160.53).
Cash at banks earns interest at floating rates based on daily bank deposit rates. Notice deposits are made for periods of 7 days, and short term time deposits are made for periods of 3 months to 6 months, depending on the cash requirements of the Group, and earn interest at the respective deposit rates.
2. Notes recievable
(1) Classification of notes receivable
||||||
|-|-|-|-|-|
||Type||2014|2013|
|Commercial acceptance bill||6,181,968,926.50||3,963,169,235.00|
|Bank acceptance bill||11,598,192,736.44||7,309,043,112.84|
||Total|17,780,161,662.94||11,272,212,347.84|

 (2) Pledged notes receivable
||||||
|-|-|-|-|-|
||Type||2014|2013|
|Bank acceptance bill||315,248,201.14||505,713,794.48|

 As at 31 December 2014 and 2013, notes receivable with above carrying amount were pledged to issue notes payable.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period are as follow:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||2014||||2013 (Restated)|||
||Type|||||||||
||||Derecognition||Un-derecognition||Derecognition||Un-derecognition|
|Commercial acceptance bill||148,639,535.00||-||189,946,670.00||-||
|Bank acceptance bill||6,471,261,656.66||-||3,156,639,590.31||-||
||Total|6,619,901,191.66||-||3,346,586,260.31||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Notes recievable (continued)
(4) As at 31 December 2014, there are no notes transferred to accounts receivable due to the non-acceptance.(As at 31 December 2013:Nil)
3. Accounts receivable
(1) An aged analysis of the accounts receivable as at the end of the reporting period is as follows:
2014 2013 Restated Within 1 year 756,799,693.66 664,530,863.36 1 to 2 years 9,248,881.83 32,673,928.80 2 to 3 years 4,975,294.50 11,938,635.83 Over 3 years 54,774,092.14 57,592,940.07 825,797,962.13 766,736,368.06 Provision (66,921,771.31) (62,098,137.00) 758,876,190.82 704,638,231.06 The movements in provision for impairment of accounts receivable are as follows:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Beginning||||Deduction|||||
|||||Addition||||||Ending balance|
|||balance||||Reversal||Write-off|||
|2014|62,098,137.00||10,117,961.85||5,294,327.54||-||66,921,771.31||
|2013(Restated)|61,876,935.23||8,511,451.06||-||8,290,249.29||62,098,137.00||

 (2) An analysis of the accounts receivable by category as at the end of the reporting period is as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||||2013 (Restated)|||||||
||Item||Balance||||Provision||||Balance||||Provision|||
||||Amount||%||Amount||%||Amount||%||Amount||%|
|Individually significantitems and analyzedindividually for provision||87,504,274.30||10.60||-||-||89,103,093.02||11.62||5,500,000.00||6.17||
|Accounts receivable analyzed as groups for provision||||||||||||||||||
|Group 1. Accountsreceivable analyzed forprovision according toaging analysis||592,279,016.92||71.72||56,639,615.25||9.56||194,080,614.07||25.31||46,257,882.75||23.83||
|Group 2. Accountsreceivable from relatedparties||135,732,514.85||16.44||-||-||473,212,406.72||61.72||-||-||
|Group subtotal||728,011,531.77||88.16||56,639,615.25||7.78||667,293,020.79||87.03||46,257,882.75||6.93||
|Individually insignificantitems but analyzedindividually for provision||10,282,156.06||1.24||10,282,156.06||100||10,340,254.25||1.35||10,340,254.25||100||
||Total|825,797,962.13||100||66,921,771.31||||766,736,368.06||100||62,098,137.00||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Accounts receivable (continued)
Within groups, accounts receivable analyzed for provision according to aging analysis:
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||2013 (Restated)|||||
||Aging||Balance||||||Balance|||||
||||||||Provision||||||Provision|
||||Amount||%||||Amount||%|||
|Within 6 months||346,507,993.68||58.50||-||102,887,058.56||53.00||-||
|6 to 12 months||183,980,746.33||31.07||9,199,037.32||4,228,546.40||2.18||211,427.32||
|Within 1 yearsubtotal||530,488,740.01||89.57||9,199,037.32||107,115,604.96||55.18||211,427.32||
|1 to 2 years||6,452,222.91||1.09||645,222.29||29,479,528.80||15.19||2,947,952.88||
|2 to 3 years||5,109,766.77||0.86||1,532,930.03||11,938,635.83||6.15||3,581,590.75||
|3 to 4 years||5,392,000.00||0.91||2,696,000.00||12,059,865.36||6.22||6,029,932.68||
|4 to 5 years||11,349,308.11||1.92||9,079,446.49||-||-||-||
|Over 5 years||33,486,979.12||5.65||33,486,979.12||33,486,979.12||17.26||33,486,979.12||
||Total|592,279,016.92||100||56,639,615.25||194,080,614.07||100||46,257,882.75||

 Within groups, accounts receivable analyzed for provision with other methods:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||2014||||2013 (Restated)|||
||Group|||||||||
||||Balance||Provision||Balance||Provision|
|Accounts receivable fromrelated parities||135,732,514.85||-||473,212,406.72||-||
||Total|135,732,514.85||-||473,212,406.72||-||

 As at 31 December 2014, there are no individually significant items analyzed individually for provision.
As at 31 December 2013, individually significant items analyzed individually for provision:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Details of accounts||Balance||Provision||Provision||Reason for provision|
||receivable||||||Percentage|||
|Hefei Changhe IndustrialCo. Ltd.||20,519,400.00||5,500,000.00||26.80||Client rejected payment due todeficiency of parts ofproducts.||
||Total|20,519,400.00||5,500,000.00||26.80||||

(3) In 2014, provision for impairment of accounts receivable amounted to RMB10,117,961.85 has been accrued (2013: RMB8,511,451.06). Provision for impairment of accounts receivable amounted to RMB5,294,327.54 has been reversed (2013: Nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Accounts receivable (continued)
(4) As at 31 December 2014, there are no provisions written off.
As at 31 December 2013, provisions written off are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||||Relationship with||||Reason for write-off|
||Debtors||||Amount|||
||||the Group|||||
|KARAKORAMMOTORS(PVT)LTD.||Non-related||7,719,759.43||The customer is bankruptcyand unable to be recover||
|WASANA TRADING LANKA (PVT) LTD.||Non-related||515,739.60||The customer is bankruptcyand unable to be recover||
|Others||Non-related||54,750.26||Unable to be recover||
||Total|||8,290,249.29||||

(5) As at 31 December 2014, top five debtors of accounts receivable are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||||||Proportion of total|||
||Debtors||Ending balance||||Provision|
||||||accounts receivable (%)|||
|First||52,986,597.75||6.42||-||
|Second||42,415,979.22||5.14||-||
|Third||38,840,411.42||4.70||-||
|Fourth||34,732,286.33||4.20||-||
|Fifth||21,559,849.32||2.61||-||
||Total|190,535,124.04||23.07||-||

 As at 31 December 2013, top five debtors of accounts receivable are as follows (Restated):
|||||||||
|-|-|-|-|-|-|-|-|
||||Ending balance||Proportion of total|||
||Debtors||||||Provision|
||||(Restated)||accounts receivable (%)|||
|First||307,806,400.00||40.15||-||
|Second||67,203,793.50||8.76||-||
|Third||40,432,696.53||5.27||1,375,150.93||
|Third||28,083,882.87||3.66||-||
|Fifth||22,058,248.72||2.88||-||
||Total|465,585,021.62||60.72||1,375,150.93||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Accounts receivable (continued)
(6) There is no accounts receivable derecognized due to transfer of financial assets during 2014 (2013: Nil). 4. Prepayments
(1) An aged analysis of the prepayments is as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||2014||||2013(Restated)|||
||Aging|||||||||
||||Amount||Percentage (%)||Amount||Percentage (%)|
|Within 1 year||823,600,044.91||98.08||677,172,210.97||96.89||
|1 to 2 years||12,594,729.34||1.50||14,012,869.55||2.00||
|2 to 3 years||3,511,694.49||0.42||5,490,348.60||0.79||
|Over 3 years||46,082.72||0.00||2,269,422.95||0.32||
||Total|839,752,551.46||100.00||698,944,852.07||100.00||

 (2) As at 31 December 2014, top five debtors of prepayments are as follows:
|||||||
|-|-|-|-|-|-|
||Debtors||Amount||Percentage (%)|
|First||259,683,750.26||30.92||
|Second||169,846,487.49||20.23||
|Third||116,103,347.49||13.83||
|Fourth||110,825,927.83||13.20||
|Fifth||36,835,155.17||4.38||
||Total|693,294,668.24||82.56||

 As at 31 December 2013, top five debtors of prepayments are as follows:
|||||||
|-|-|-|-|-|-|
||Debtors||Amount||Percentage (%)|
|First||188,273,141.09||26.94||
|Second||152,653,804.80||21.84||
|Third||65,831,512.45||9.42||
|Fourth||57,800,000.00||8.27||
|Fifth||34,464,493.75||4.93||
||Total|499,022,952.09||71.40||

 5. Interest receivable
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Time Deposit||22,083,194.44||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
6. Other receivables
(1) An aged analysis of the other receivables as at the end of the reporting period is as follows:
2014 2013 Restated Within 1 year 231,000,922.88 209,373,179.66 1 to 2 years 6,624,196.29 1,736,470.64 2 to 3 years 12,232,852.46 4,476,678.00 Over 3 years 14,969,794.22 26,560,944.00 264,827,765.85 242,147,272.30 Provision (4,370,480.35) (30,336,273.49) 260,457,285.50 211,810,998.81 The movements in provision for impairment of other receivables are as follows:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Beginning||||Deduction|||||
|||balance||Addition||Reversal||Write-off||Ending balance|
|||(Restated)|||||||||
|2014|30,336,273.49||258,171.94||1,459,695.08||24,764,270.00||4,370,480.35||
|2013(Restated)|35,100,637.23||149,283.21||4,913,646.95||-||30,336,273.49||

 (2) An analysis of the other receivables by category is as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||||2013|||||||
||Item||Balance||||Provision||||Balance||||Provision|||
||||Amount||%||Amount||%||Amount||%||Amount||%|
|Individually significantitems and analyzedindividually for provision||123,832,000.00||46.76||-||-||147,659,000.00||60.98||24,199,000.00||16.39||
|Other receivables analyzed as groups for provision||||||||||||||||||
|Group 1. Other receivablesanalyzed for provisionaccording to aging analysis||138,925,510.22||52.46||2,481,267.13||1.79||92,131,578.08||38.05||3,780,579.27||4.10||
|Group 2. Other receivablesfrom related parties||181,042.41||0.07||-||-||-||-||-||-||
|Group subtotal||139,106,552.63||52.53||2,481,267.13||1.78||92,131,578.08||38.05||3,780,579.27||4.10||
|individually insignificantitems but analyzedindividually for provision||1,889,213.22||0.71||1,889,213.22||100||2,356,694.22||0.97||2,356,694.22||100||
||Total|264,827,765.85||100||4,370,480.35||||242,147,272.30||100||30,336,273.49||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
6. Other receivables (continued)
Within groups, other receivables analyzed for provision according to aging analysis:
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||2014|||||||2013(Restated)|||||
||Aging||Balance||||||Balance|||||
||||||||Provision||||||Provision|
||||Amount||%||||Amount||%|||
|Within 6 months||133,122,029.36||95.82||-||79,467,789.22||86.26||-||
|6 to 12 months||370,404.77||0.27||18,520.23||4,088,696.22||4.44||204,434.81||
|Within 1 yearsubtotal||133,492,434.13||96.09||18,520.23||83,556,485.44||90.70||204,434.81||
|1 to 2 years||1,876,797.77||1.35||187,679.78||1,736,470.64||1.88||173,647.06||
|2 to 3 years||1,407,927.71||1.01||422,378.31||4,476,678.00||4.86||1,343,003.40||
|3 to 4 years||372,323.61||0.27||186,161.81||600,900.00||0.65||300,450.00||
|4 to 5 years||547,500.00||0.39||438,000.00||10,000.00||0.01||8,000.00||
|Over 5 years||1,228,527.00||0.89||1,228,527.00||1,751,044.00||1.90||1,751,044.00||
||Total|138,925,510.22||100||2,481,267.13||92,131,578.08||100.00||3,780,579.27||

 As at 31 December 2014, there are no individually significant items analyzed individually for provision.
As at 31 December 2013, individually significant items analyzed individually for provision are as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Provision|||
||Details of other receivables||Balance||Provision||Percentage||Reason for provision|
||||||||(%)|||
|Nanjing Yinkun Real EstateBrokerage Co., Ltd.||24,199,000.00||24,199,000.00||100.00||Client is unable to makepayment due to insolvency||

 (3) For the year ended 31 December 2014, provision for impairment of other receivables amounted to RMB258,171.94 has been accrued (2013: RMB149,283.21). For the year ended 31 December 2014, provision for impairment of other receivables amounted to RMB1,459,695.08 has been reversed (2013: RMB4,913,646.95).
(4) For the year ended 31 December 2014, provision for impairment of other receivables amounted to RMB24,764,270.00 has been written off (2013: Nil) as follow:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Provision|||
||||||||||Reason for provision|
||Details of other receivables||Balance||Provision||Percentage|||
||||||||||written off|
||||||||(%)|||
|Nanjing Yinkun Real EstateBrokerage Co., Ltd.||24,199,000.00||24,199,000.00||100.00||Client is unable to makepayment due toinsolvency||
|Dianjiang Test Office||565,270.00||565,270.00||100.00||Project terminated||
||Total|24,764,270.00||24,764,270.00||100.00||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
6. Other receivables (continued)
(5) An analysis of the other receivables by nature is as follows:
||||||
|-|-|-|-|-|
||Nature||2014|2013(Restated)|
|Energy-saving subsidy||123,832,000.00||123,460,000.00|
|Pretty Cash||50,696,835.12||42,894,166.30|
|Secuity Deposit||26,808,048.13||8,398,644.00|
|Export rebates||15,961,250.16||3,617,112.98|
|Others||43,159,152.09||33,441,075.53|
||Total|260,457,285.50||211,810,998.81|

 (6) As at 31 December 2014, top five debtors of other receivables are as follows:
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Proportion of|||
||Debtors||Amount||Nature||Aging||total other||Provision|
||||||||||receivables (%)|||
|First||123,832,000.00||Energy-saving subsidy||Within two year||46.76||-||
|Second||19,644,766.13||Secuity Deposit||Within one year||7.42||-||
|Third||5,725,391.09||Pretty Cash||Within one year||2.16||-||
|Fourth||5,000,000.00||Pretty Cash||Within one year||1.89||-||
|Fifth||3,418,803.42||Pretty Cash||Within one year||1.29||-||
||Total|157,620,960.64||||||59.52||-||

 As at 31 December 2013, top five debtors of other receivables are as follows:
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Proportion of|||
||Debtors||Amount||Nature||Aging||total other||Provision|
||||||||||receivables (%)|||
|First||123,460,000.00||Energy-saving subsidy||Within one year||50.99||-||
|Second||24,199,000.00||Lease receivable||Within five years||9.99||24,199,000.00||
|Third||21,373,332.00||Pretty Cash||Within one year||8.83||-||
|Fourth||13,176,365.28||Pretty Cash||Within one year||5.44||-||
|Fifth||11,868,277.14||Pretty Cash||Within one year||4.90||-||
||Total|194,076,974.42||||||80.15||24,199,000.00||

 (7) As at 31 December 2014, there is no other receivables from government grant (2013: Nil).
(8) There is no accounts receivable derecognized due to transfer of financial assets during 2014 (2013: Nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
7. Inventories
(1) Classification of inventories
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014|||||2013(Restated)|||||
||Item||||||||||||
||||Balance||Provision|Net value||Balance||Provision||Net value|
|Raw materials||479,605,856.33||43,047,494.14||436,558,362.19|415,769,370.41||117,772,351.55||297,997,018.86||
|Material in transit||48,741,864.29||-||48,741,864.29|90,148,709.08||-||90,148,709.08||
|Work in progress||666,159,202.60||72,883,429.99||593,275,772.61|633,540,001.07||53,583,639.35||579,956,361.72||
|Finish goods||5,378,816,735.63||38,664,885.02||5,340,151,850.61|3,642,436,542.98||49,947,251.98||3,592,489,291.00||
|Consignedprocessingmaterial||2,157,864.35||-||2,157,864.35|2,217,155.60||-||2,217,155.60||
|Consumables||151,297,690.45||-||151,297,690.45|171,926,569.45||-||171,926,569.45||
|Spare parts||3,077.01||-||3,077.01|316,620.86||-||316,620.86||
||Total|6,726,782,290.66||154,595,809.15||6,572,186,481.51|4,956,354,969.45||221,303,242.88||4,735,051,726.57||

 (2) Provision for inventories
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||Deduction|||
||||Beginning balance(Restated)|Provision|||||
||Type|||||Reversal Or Written||Ending balance|
|||||||off|||
|Raw materials||117,772,351.55||11,764,669.25|86,489,526.66||43,047,494.14||
|Work in progress||53,583,639.35||58,036,377.72|38,736,587.08||72,883,429.99||
|Finish goods||49,947,251.98||69,041,950.01|80,324,316.97||38,664,885.02||
||Total|221,303,242.88||138,842,996.98|205,550,430.71||154,595,809.15||

 2013(Restated)
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||Deduction|||
||||Beginning balance(Restated)|Provision|||||
||Type|||||Reversal Or Written||Ending balance|
|||||||off|||
|Raw materials||94,323,523.41||29,811,164.51|6,362,336.37||117,772,351.55||
|Work in progress||5,464,558.32||49,145,075.33|1,025,994.30||53,583,639.35||
|Finish goods||98,172,550.44||52,303,624.55|100,528,923.01||49,947,251.98||
||Total|197,960,632.17||131,259,864.39|107,917,253.68||221,303,242.88||

 (3) Explanation for the provision
The Group assesses whether the cost of inventory is higher than the net realizable value and makes provision of the difference. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The reversal of inventory provisions are due to reboundence of net realizable value of previous impaired inventories, while written off of inventory provisions are due to selling out of previous impaired inventories in current year.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
7. Inventories (continued)
Explanation for the inventory
As at 31 December 2014, finished goods of 62,395 cars are transported to the dealers. According to the protocol signed among the Group, the bank and the dealer, corresponding car certificates are pledged in the bank, including: 7,189 cars in Huaxia Bank; 12,257 cars in China Citic Bank; 8,923 cars in China Everbright Bank; 3,640 cars in Bank of Communications Co., Ltd.; 30,386 cars in China South Industry Group Finance Co., Ltd..
As at 31 December 2013, finished goods of 63,758 cars are transported to the dealers. According to the protocol signed among the Group, the bank and the dealer, corresponding car certificates are pledged in the bank, including: 6,499 cars in Huaxia Bank; 12,363 cars in China Citic Bank; 8,532 cars in China Everbright Bank; 3,211 cars in Bank of Communications Co., Ltd.; 32,889 cars in China South Industry Group Finance Co., Ltd.; 264 cars in other banks.
8. Other current assets
||||||
|-|-|-|-|-|
||Item||2014|2013(Restated)|
|Accrual input tax||2,835,337.83||2,541,492.57|
|Others||534,882.00||44,245.00|
||Total|3,370,219.83||2,585,737.57|

 9. Available-for-sale financial assets
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||2013 (Restated)|||||
||Item|||||||||||||
||||Book value||Provision||Net value||Book value||Provision||Net value|
|Available-for-saleequity instrument||||||||||||||
|Measured at fairvalue||422,767,500.00||27,120,000.00||395,647,500.00||284,439,416.00||27,120,000.00||257,319,416.00||
|Measured athistorical cost||148,809,274.00||-||148,809,274.00||108,809,274.00||-||108,809,274.00||
||Total|571,576,774.00||27,120,000.00||544,456,774.00||393,248,690.00||27,120,000.00||366,128,690.00||

 As at 31 December 2014, The available-for-sale equity securities instrument measured at fair vale are the 17.75 million ordinary share of Southwest Securities Co., Ltd.. (31 December 2013: 17.75 million ordianary shares of Southwest Securities Co., Ltd. and 9.46 million ordinary shares of Huaxia Bank)
Available-for-sale financial assets measured at fair value:
||||||
|-|-|-|-|-|
||Item|2014||2013|
|Cost of equity instrument||50,000,000.00|55,716,571.71||
|Fair value||395,647,500.00|257,319,416.00||
|Accumulated amount of change on fair value recordedin other comprehensive income||372,767,500.00|228,722,844.29||
|Provision||27,120,000.00|27,120,000.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
9. Available-for-sale financial assets (continued)
Available-for-sale financial assets measured at historical cost:
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Book value|||||||||Provision|||||||||||||
||||Beginning|||||||||||||||||||Shareholding||Cash dividend in|
||Item||||||||||B|eginning|||||||E|nding|||||
||||balance||Addition|D|ispos|al||Ending balance|||A|dditio|n||Disposa|l||||Ratio (%)||current year|
|||||||||||||balance||||||||balance|||||
||||（Restated）||||||||||||||||||||||
|China South Industry GroupFinance Co., Ltd.||80,000,000.00||-||-|||80,000,000.00||-||-|||-|||-||5.33||31,252,435.46||
|Chongqing Ante trading Co., Ltd||3,000,000.00||-||-|||3,000,000.00||-||-|||-|||-||10.00||-||
|Sichuan Glass Co., Ltd.||1,809,274.00||-||-|||1,809,274.00||-||-|||-|||-||0.64||-||
|Zhong Fa Lian Investment Co.,Ltd.||21,000,000.00||-||-|||21,000,000.00||-||-|||-|||-||10.00||-||
|CAERI(Beijing) automobileLightweight TechnologyResearch Institution Co., Ltd.||3,000,000.00||-||-|||3,000,000.00||-||-|||-|||-||6.89||-||
|Guoqi Automobile Power CellResearch Co., Ltd.||-||40,000,000.00||-|||40,000,000.00||-||-|||-|||-||7.41||-||
||Total||108,809,274.00||40,000,000.00||-|||148,809,274.00||-||-|||-|||-||||31,252,435.46|

|||||||
|-|-|-|-|-|-|
||Provision for available-for-sale financial|||||
||||2014||2013|
||asstes|||||
|Provision balance at beginning and ending ofthe year||27,120,000.00||27,120,000.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
10. Long-term equity investments
2014
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Other||||||||||Provision|
||||||||||Investment income||||Other equity||Cash dividends||||Book value ending|||
||Investee||Beginning balance||Addition||Deduction||||comprehensive||||||Provision||||ending|
||||||||||under equity method||||variation||declared||||balance|||
||||||||||||income||||||||||balance|
|Joint Venture||||||||||||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd.||1,422,871,007.19||-||(28,024,712.81)||10,299,515.59||-||3,127,864.50||-||-||1,408,273,674.47||-||
|Jiangling Holding Co., Ltd.||1,970,068,511.81||-||-||363,988,695.87||-||-||||||2,334,057,207.68||||
|Changan Ford AutomobileCo., Ltd.||5,168,880,471.54||-||-||7,148,483,522.43||-||-||(7,700,000,000.00)||||4,617,363,993.97||||
|Changan Mazda AutomobileCo., Ltd.||1,165,287,267.32||-||-||120,709,554.23||-||-||-||-||1,285,996,821.55||-||
|Changan Ford Mazda EngineCo., Ltd.||599,468,669.92||-||-||507,303,463.50||-||-||-||-||1,106,772,133.42||-||
|Changan PSAAutomobiles Co., Ltd.||1,957,257,672.14||-||-||(161,510,779.33)||||||||||1,795,746,892.81||||
|Associates||||||||||||||||||||||
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd.||8,772,039.08||-||-||448,145.51||-||-||-||-||9,220,184.59||-||
|Chongqing Changan KuayueAutomobile Co., Ltd.||64,068,246.00||-||-||2,490,445.97||-||-||-||-||66,558,691.97||-||
|Chongqing Changan KuayueAutomobile Sales Co., Ltd.(note)||-||-||-||-||-||-||-||-||-||-||
|Beijing Fang’an taxi Co., Ltd.(note)||998,629.64||-||-||(998,629.64)||-||-||-||-||-||||
|Total||12,357,672,514.64||-||(28,024,712.81)||7,991,213,934.13||-||3,127,864.50||(7,700,000,000.00)||-||12,623,989,600.46||-||

 Note: As at 31 December 2014, the Group is not responsible for extral loss from Chongqing Changan Kuayue Automobile Sales Co., Ltd. and BeijingFang’an taxi Co., Ltd.. Therefore, when these two associates occurred excess losses, the Group just reduced its correspondent long-term equity investment to zero, and did not recognize contingent liabilities accordingly.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
10. Long-term equity investments
2013
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Other||Other||||||||Provision|
||||||||||Investment income||||||Cash dividends||||Book value ending|||
||Investee||Beginning balance||Addition||Deduction||||comprehensive||equity||||Provision||||ending|
||||||||||under equity method||||||declared||||balance|||
||||||||||||income||variation||||||||balance|
|Joint Venture||||||||||||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd.||1,421,953,088.21||-||-||917,918.98||-||-||-||-||1,422,871,007.19||-||
|Jiangling Holding Co., Ltd.||1,706,722,325.52||-||-||263,346,186.29||-||-||-||-||1,970,068,511.81||-||
|Changan Ford AutomobileCo., Ltd.||2,677,677,911.23||-||-||4,091,202,560.31||-||-||(1,600,000,000.00)||-||5,168,880,471.54||-||
|Changan Mazda AutomobileCo., Ltd.||1,115,310,608.80||-||-||49,976,658.52||-||-||||-||1,165,287,267.32||-||
|Changan Ford Mazda EngineCo., Ltd.||475,236,298.82||-||-||124,232,371.10||-||-||-||-||599,468,669.92||-||
|Changan PSAAutomobiles Co., Ltd.||-||2,007,841,700.00||-||(50,584,027.86)||-||-||-||-||1,957,257,672.14||-||
|Associates||||||||||||||||||||||
|Chongqing HelpGoInformation TechnologyCo., Ltd.||10,316,211.80||-||(10,316,211.80)||-||-||-||-||-||-||-||
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd.||8,415,002.53||-||-||357,036.55||-||-||-||-||8,772,039.08||-||
|Chongqing Changan KuayueAutomobile Co., Ltd.||63,870,734.11||-||-||197,511.89||-||-||-||-||64,068,246.00||-||
|Chongqing Changan KuayueAutomobile Sales Co., Ltd.||-||-||-||-||-||-||-||-||-||-||
|Beijing Fang’an taxi Co., Ltd.||6,000,000.00||-||-||(5,001,370.36)||-||-||-||-||998,629.64||-||
|Total||7,485,502,181.02||2,007,841,700.0||(10,316,211.80)||4,474,644,845.42||-||-||(1,600,000,000.00)||-||12,357,672,514.64||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
11. Investment property
Cost Model
2014
|||||||
|-|-|-|-|-|-|
||Item||Builidings|||
||||2014||2013(Restated)|
||Original cost|||||
|Beginning (Restated)||11,511,221.65||11,511,221.65||
|Transferred from CIP||308,479.59||-||
|Ending||11,819,701.24||11,511,221.65||
||Accumulated depreciation and amortization|||||
|Beginning (Restated)||2,020,594.52||1,456,926.86||
|Accrual||338,961.68||563,667.66||
|Ending||2,359,556.20||2,020,594.52||
||Impairment Provision|||||
|Beginning and Ending||-||-||
||Carrying amount|||||
|Ending||9,460,145.04||9,490,627.13||
|Beginning (Restated)||9,490,627.13||10,054,294.79||

 As at 31 December 2014, there is no investment property whose certificate of title is not completed (As at 31 December 2013: Nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
12. Fixed assets
(1) Details of fixed assets
2014
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Item||Buildings||Machinery||Vehicles||Other Equipments||Total|
||Original cost|||||||||||
|Beginning(Restated)||5,328,303,054.21||11,658,837,136.95||104,296,206.24||3,397,802,842.91||20,489,239,240.31||
|Purchase||15,906,457.03||235,729,864.13||1,881,337.46||37,200,150.49||290,717,809.11||
|Transfers||390,529,320.65||878,796,589.88||14,310,645.06||460,354,359.89||1,743,990,915.48||
|Disposal||13,809,809.42||316,950,466.71||15,403,063.98||140,573,746.91||486,737,087.02||
|Ending||5,720,929,022.47||12,456,413,124.25||105,085,124.78||3,754,783,606.38||22,037,210,877.88||
||Accumulated|||||||||||
||depreciation|||||||||||
|Beginning(Restated)||692,887,200.12||3,744,382,170.71||40,204,107.27||1,179,545,602.51||5,657,019,080.61||
|Accrual||185,964,907.63||1,052,390,886.15||12,079,240.50||375,795,049.84||1,626,230,084.12||
|Disposal||9,200,640.70||297,656,727.19||9,050,571.42||92,238,244.33||408,146,183.64||
|Ending||869,651,467.05||4,499,116,329.67||43,232,776.35||1,463,102,408.02||6,875,102,981.09||
||Impairment|||||||||||
||provision|||||||||||
|Beginning(Restated)||1,440,453.56||419,130,165.95||55,086.70||38,601,942.33||459,227,648.54||
|Accrual||4,208,463.69||152,059,173.83||56,868.95||29,620,813.72||185,945,320.19||
|Disposal||650,000.00||25,105,940.51||-||22,888,927.81||48,644,868.32||
|Ending||4,998,917.25||546,083,399.27||111,955.65||45,333,828.24||596,528,100.41||
||Carrying|||||||||||
||amount|||||||||||
|Ending||4,846,278,638.17||7,411,213,395.31||61,740,392.78||2,246,347,370.12||14,565,579,796.38||
|Beginning(Restated)||4,633,975,400.53||7,495,324,800.29||64,037,012.27||2,179,655,298.07||14,372,992,511.16||

2013 (Restated)
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Item||Buildings||Machinery||Vehicles||Other Equipments||Total|
||Original cost|||||||||||
|Beginning||4,346,268,495.38||9,986,404,274.39||88,446,137.31||2,913,028,352.84||17,334,147,259.92||
|Purchase||77,361,200.59||34,492,205.79||3,553,292.29||46,221,866.42||161,628,565.09||
|Transfers||908,695,680.55||2,131,082,248.74||20,008,836.93||491,979,770.40||3,551,766,536.62||
|Disposal||4,022,322.31||493,141,591.97||7,712,060.29||53,427,146.75||558,303,121.32||
|Ending||5,328,303,054.21||11,658,837,136.95||104,296,206.24||3,397,802,842.91||20,489,239,240.31||
||Accumulated|||||||||||
||depreciation|||||||||||
|Beginning||532,881,481.25||2,981,307,895.43||36,158,670.70||969,976,130.71||4,520,324,178.09||
|Accrual||161,027,937.00||965,415,100.97||9,599,007.01||252,434,720.09||1,388,476,765.07||
|Disposal||1,022,218.13||202,340,825.69||5,553,570.44||42,865,248.29||251,781,862.55||
|Ending||692,887,200.12||3,744,382,170.71||40,204,107.27||1,179,545,602.51||5,657,019,080.61||
||Impairment|||||||||||
||provision|||||||||||
|Beginning||-||498,087,652.82||-||12,529,850.03||510,617,502.85||
|Accrual||1,440,453.56||130,785,697.66||55,086.70||26,678,877.16||158,960,115.08||
|Disposal||-||209,743,184.53||-||606,784.86||210,349,969.39||
|Ending||1,440,453.56||419,130,165.95||55,086.70||38,601,942.33||459,227,648.54||
||Carrying|||||||||||
||amount|||||||||||
|Ending||4,633,975,400.53||7,495,324,800.29||64,037,012.27||2,179,655,298.07||14,372,992,511.16||
|Beginning||3,813,387,014.13||6,507,008,726.14||52,287,466.61||1,930,522,372.10||12,303,205,578.98||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
12. Fixed assets (continued)
(2) Fixed assets that are temporarily unused
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item||Original cost|Accumulated depreciation||Impairment provision||Carrying amount|
|Buildings||36,615,885.46||11,877,600.90|-||24,738,284.56||
|Machinery||679,453,239.72||298,095,420.08|381,179,932.77||177,886.87||
|Vehicles||78,185.00||4,738.02|73,446.98||-||
|Other Equipments||51,246,872.17||26,548,842.29|24,270,384.58||427,645.30||
||Total|767,394,182.35||336,526,601.29|405,523,764.33||25,343,816.73||

 2013 (Restated)
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item||Original cost|Accumulated depreciation||Impairment provision||Carrying amount|
|Buildings||39,786,789.29||11,871,941.68|1,357,928.94||26,556,918.67||
|Machinery||639,180,548.12||331,877,145.79|304,709,586.59||2,593,815.74||
|Vehicles||1,279,792.64||764,171.61|75,815.98||439,805.05||
|Other Equipments||167,860,182.57||112,608,679.28|49,637,653.34||5,613,849.95||
||Total|848,107,312.62||457,121,938.36|355,780,984.85||35,204,389.41||

 (3) As at 31 December 2014, there is no fixed assets which are rented into under finance leases, rented out under operating leases, or held for sale (As at 31 December 2013: Nil).
(4) Fixed assets whose certificate of title is not completed as at 31 December 2014:
||||||
|-|-|-|-|-|
||Item|Carrying amount||Reason for incomplete certificate of title|
|Painting plant I||204,939,031.48|Under processing||
|Assemble plant I||160,901,915.45|Under processing||
|Welding plant I||142,900,933.75|Under processing||
|Assemble plant II||129,424,859.88|Under processing||
|Painting plant II||90,564,695.59|Under processing||
|Stamping plant||78,839,607.59|Under processing||
|Factory Road||78,515,778.45|Under processing||
|Painting workshop in new site||71,863,924.81|Under processing||
|Stamping plant||54,680,563.98|Under processing||
|Packaging plant||51,606,700.76|Under processing||
|Service facilities||48,104,072.59|Under processing||
|Assemble workshop in new site||46,010,518.27|Under processing||
|EACasting workshop Phase I||45,720,296.35|Under processing||
|Welding plant II||41,449,758.06|Under processing||
|New energy and laboratory shop||39,567,272.23|Under processing||
|Buildings in testing projects||38,039,429.17|Under processing||
|Office building||37,436,100.97|Under processing||
|Second plant and public building||34,929,869.44|Under processing||
|Welding workshop in new site||26,590,402.32|Under processing||
|Test Road||25,262,251.81|Under processing||
|Exhibition Centre||25,215,473.45|Under processing||
|Debugging workshop||23,563,301.98|Under processing||
|Sewage treatment station||23,301,762.13|Under processing||
|Car park||18,655,316.93|Under processing||
|Canteen I & II||18,654,957.19|Under processing||
|Power Station||18,455,531.37|Under processing||
|Visual inspection plant||18,124,381.23|Under processing||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
13. Construction in progress
(1) Details of construction in progress
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||2013(Restated)|||||
||Item|||||||||||||
||||Balance||Provision||Carrying amount||Balance||Provision||Carrying amount|
|Mini-bus production equipment||51,532,611.69||-||51,532,611.69||50,083,620.26||-||50,083,620.26||
|Yuzui motor city project||56,137,499.36||-||56,137,499.36||3,340,635.09||-||3,340,635.09||
|Sedan production equipment||21,154,399.12||-||21,154,399.12||42,419,237.65||-||42,419,237.65||
|Engine plant||390,640,806.71||-||390,640,806.71||90,556,793.45||-||90,556,793.45||
|Vehicle research institution||27,883,151.96||-||27,883,151.96||69,250,097.06||-||69,250,097.06||
|Car moulds||264,739,352.30||-||264,739,352.30||356,844,644.42||-||356,844,644.42||
|Light vehicle technicaltransformation project ofBaoding Changan bus||29,974,950.86||-||29,974,950.86||56,020,860.61||-||56,020,860.61||
|Plant for vehicle test project||76,854.40||-||76,854.40||541,058,623.64||-||541,058,623.64||
|Beijing vehicle constructionproject||232,656,244.67||-||232,656,244.67||40,243,489.44||-||40,243,489.44||
|Production Line for 100,000capacity||10,458,678.57||10,458,678.57||-||10,458,678.57||10,458,678.57||-||
|Engine Base of Nanjing||24,147,569.91||-||24,147,569.91||3,113,926.18||||3,113,926.18||
|Yuzui Refitting factory||20,399,257.73||-||20,399,257.73||6,716,923.97||||6,716,923.97||
|Car production Project Of HefeiChangan||15,630,398.56||-||15,630,398.56||-||||-||
|Others||139,023,867.97||||139,023,867.97||69,124,905.28||||69,124,905.28||
||Total|1,284,455,643.81||10,458,678.57||1,273,996,965.24||1,339,232,435.62||10,458,678.57||1,328,773,757.05||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
13. Construction in progress (continued)
(2) Significant movements of construction in progress in 2014
|||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||||The project||Progre||||||||||||
|||||||||||||||||||Accumulated||Including: Current||Current||||||
||||Budget||Beginning balance|)||||||||investments’||ss of||||||||Source of||||
||Project|||||||Addition||Transfer to fixed assets||Other deduction||||||capitalized||capitalized||capitalization||||Ending balan|ce|
||||(RMB0,000)||(Restated|||||||||proportion of||constr||||||||funds||||
|||||||||||||||||||interest||interest||rate||||||
|||||||||||||||budget||uction||||||||||||
|Mini-busproductionequipment||133,127.00||50,083,620.26|||63,899,939.33||62,416,985.62||33,962.28||86%||86%||412,957.05||-||-||Raised||51,532,611.69|||
|Yuzui motor cityproject||228,863.00||3,340,635.09|||65,985,148.78||13,188,284.51||-||63%||63%||-||-||-||Raised||56,137,499.36|||
|Sedanproductionequipment||173,359.00||42,419,237.65|||170,345,859.68||191,610,698.21||-||44%||44%||505,924.12||-||-||Raised||21,154,399.12|||
|Engine plant||561,556.20||90,556,793.45|||406,723,165.96||106,551,836.05||87,316.65||62%||62%||12,926,342.81||-||-||Raised||390,640,806.71|||
|Vehicle researchinstitution||73,417.00||69,250,097.06|||59,081,623.04||100,182,532.48||266,035.36||95%||95%||863,669.92||-||-||Raised||27,883,152.26|||
|Car moulds||150,727.81||356,844,644.42|||108,065,995.25||200,171,287.67||-||76%||82%||3,397,900.43||-||-||Raised||264,739,352.00|||
|Light vehicletechnicaltransformation project ofBaodingChangan Bus||27,596.15||56,020,860.61|||51,541,526.19||77,587,435.94||-||80%||80%||-||-||-||Raised||29,974,950.86|||
|Plant for vehicletest project||148,556.00||541,058,623.64|||197,142,374.96||737,934,680.06||189,464.14||83%||83%||||-||-||Raised||76,854.40|||
|Beijing vehicleconstructionproject||257,468.00||40,243,489.44|||270,767,602.21||78,354,846.98||-||92%||91%||-||-||-||Raised||232,656,244.67|||
|Engine Base ofNanjing||17,750.00||3,113,926.18|||22,404,714.10||1,371,070.37||-||15%||15%||-||-||-||Raised||24,147,569.91|||
|Yuzui Refittingfactory||29,977.00||6,716,923.97|||13,682,333.76||-||-||16%||16%||||-||-||Raised||20,399,257.73|||
|Car productionproject of HefeiChangan||34,660.00||-|||72,447,820.97||52,483,463.77||4,333,958.64||2%||2%||||-||-||Raised||15,630,398.56|||
|Others||-||69,124,905.28|||192,054,961.68||122,137,793.82||18,205.17||||||27,646,324.37||117,119.22||-||Raised andloans||139,023,867.97|||
||Total|||1,328,773,757.05|||1,694,143,065.91||1,743,990,915.48||4,928,942.24||||||45,753,118.7||117,119.22||||||1,273,996,965.24|||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
13. Construction in progress (continued)
(2) Significant movements of construction in progress in 2013(Restated)：
||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||||The project||||||Including:||||||||
||||||||||||||||||||Accumulated|||c|Current||||||
||||Budget||||||||||||investments’|c|Progress of||||Current||||Source||||
||Project||||Beginning balanc|e||Additi|on||Transfer to fixed assets||Other deduction||||||capitalized||||apitalization||||Ending balan|ce|
||||(RMB0,000)||||||||||||proportion of||onstruction||||capitalized||||of funds||||
||||||||||||||||||||interest||||rate||||||
||||||||||||||||budget||||||interest||||||||
|Mini-bus productionequipment||111,717.00||5,351,731.68|||84,725,957.57|||39,994,068.99||-||96%||96%||412,957.05||-||-||Raised||50,083,620.26|||
|Yuzui motor cityproject||179,363.00||44,396,939.00|||38,242,367.79|||79,298,671.70||-||77%||77%||-||-||-||Raised||3,340,635.09|||
|Changan industrialgarden project||149,031.00||8,980,021.25|||25,401.71|||8,369,061.25||-||100%||99%||19,943,614.65||-||-||Raised||636,361.71|||
|Sedan productionequipment||113,432.00||48,529,810.27|||100,607,372.75|||106,717,945.37||-||52%||52%||505,924.12||-||-||Raised||42,419,237.65|||
|Engine plant||492,356.20||1,356,956,576.22|||565,359,037.72|||1,831,628,035.52||130,784.97||63%||63%||12,926,342.81||-||-||Raised||90,556,793.45|||
|Vehicle researchinstitution||71,400.00||133,651,791.31|||38,989,912.11|||103,391,606.36||-||89%||89%||863,669.92||-||-||Raised||69,250,097.06|||
|Car moulds||108,937.05||226,624,484.08|||454,355,070.04|||324,134,909.70||-||96%||96%||3,397,900.43||-||-||Raised||356,844,644.42|||
|Hebei M201 busproduction plantproject||27,511.15||36,064,353.60|||44,528,516.68|||76,102,870.35||4,489,999.93||100%||100%||-||-||-||Raised||-|||
|Light vehicle technicaltransformationproject of BaodingChangan bus||22,442.00||6,302,795.17|||86,859,728.72|||37,141,663.28||-||75%||75%||||||||Raised||56,020,860.61|||
|Plant for vehicle testproject||108,688.00||688,512,568.10|||296,175,741.22|||443,629,685.68||-||90%||95%||-||-||-||Raised||541,058,623.64|||
|Beijing vehicleconstructionproject||191,943.00||26,246,205.34|||46,370,322.93|||32,373,038.83||-||100%||98%||-||-||-||Raised||40,243,489.44|||
|Reform of productionline with 150,000capacity||172,917.72||117,974,029.06|||17,701,009.79|||135,675,038.85||-||100%||100%||||||||Raised||-|||
|Engine Base of Nanjing||17,750.00||-|||4,214,064.59|||1,100,138.41||-||2%||2%||||||||Raised||3,113,926.18|||
|Yuzui Refitting factory||29,977.00||582,004.00|||6,134,919.97|||-||-||2%||2%||||||||Raised||6,716,923.97|||
|Others||-||223,129,606.04|||177,902,828.78|||332,209,802.33||334,088.92||-||-||4,888,488.22||2,814,221.50||6.15%||Raisedandloans||68,488,543.57|||
||Total|||2,923,302,915.12|||1,962,192,252.37|||3,551,766,536.62||4,954,873.82||-||-||42,938,897.20||2,814,221.50||||||1,328,773,757.05|||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
13. Construction in progress (continued)
(3) Movement of provision for the impairment of construction inprogress：
2014 and 2013(Restated)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Beginning balance||Addition||Deduction||Ending balance||Reason|
|Reform of production line with 100,000 capacity ofHefei Changan in previous years|10,458,678.57||-||-||10,458,678.57||According to the Company’s strategicplanning adjustment, the project hadbeen cancelled.||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
14. Intangible assets
Details of intangibale assets
2014
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Trademark use||Non-patent|||
||Item||Land use rights||Software use rights||||||Total|
||||||||rights||technology|||
||Original cost|||||||||||
|Beginning(Restated)||1,355,080,789.00||261,423,962.37||211,784,400.00||1,282,254,915.47||3,110,544,066.84||
|Purchase||556,916,821.93||51,334,201.98||-||1,929,069.69||610,180,093.60||
|Internal researchand development||-||-||-||571,558,173.67||571,558,173.67||
|Ending||1,911,997,610.93||312,758,164.35||211,784,400.00||1,855,742,158.83||4,292,282,334.11||
||Accumulated|||||||||||
||amortization|||||||||||
|Beginning(Restated)||113,358,628.31||187,007,238.16||79,969,224.29||577,811,832.75||958,146,923.51||
|Accrual||31,989,850.48||58,417,304.54||19,954,213.29||247,312,351.54||357,673,719.85||
|Ending||145,348,478.79||245,424,542.70||99,923,437.58||825,124,184.29||1,315,820,643.36||
||Impairment|||||||||||
||provision|||||||||||
|Beginning(Restated)||-||-||-||76,176,660.79||76,176,660.79||
|Accrual||-||21,319,804.81||-||-||21,319,804.81||
|Ending||-||21,319,804.81||-||76,176,660.79||97,496,465.60||
||Carrying amount|||||||||||
|Ending||1,766,649,132.14||46,013,816.84||111,860,962.42||954,441,313.75||2,878,965,225.15||
|Beginning(Restated)||1,241,722,160.69||74,416,724.21||131,815,175.71||628,266,421.93||2,076,220,482.54||

2013(Restated)
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Trademark use||Non-patent|||
||Item||Land use rights||Software use rights||||||Total|
||||||||rights||technology|||
||Original cost|||||||||||
|Beginning||1,316,839,240.92||189,302,665.88||211,784,400.00||1,099,490,649.02||2,817,416,955.82||
|Purchase||46,845,247.74||72,121,296.49||-||-||118,966,544.23||
|Internal researchand development||||||||182,764,266.45||182,764,266.45||
|Disposal||8,603,699.66||-||-||-||8,603,699.66||
|Ending||1,355,080,789.00||261,423,962.37||211,784,400.00||1,282,254,915.47||3,110,544,066.84||
||Accumulated|||||||||||
||amortization|||||||||||
|Beginning||86,929,347.88||146,851,187.94||60,012,611.01||364,025,245.97||657,818,392.80||
|Accrual||26,966,736.43||40,156,050.22||19,956,613.28||213,786,586.78||300,865,986.71||
|Disposal||537,456.00||-||-||-||537,456.00||
|Ending||113,358,628.31||187,007,238.16||79,969,224.29||577,811,832.75||958,146,923.51||
||Impairment|||||||||||
||provision|||||||||||
|Beginning||6,700,000.00||-||-||9,126,515.83||15,826,515.83||
|Accrual||-||-||-||67,050,144.96||67,050,144.96||
|Disposal||6,700,000.00||-||-||-||6,700,000.00||
|Ending||-||-||-||76,176,660.79||76,176,660.79||
||Carrying amount|||||||||||
|Ending||1,241,722,160.69||74,416,724.21||131,815,175.71||628,266,421.93||2,076,220,482.54||
|Beginning||1,223,209,893.04||42,451,477.94||151,771,788.99||726,338,887.22||2,143,772,047.19||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
14. Intangible assets (continued)
As at 31 December 2014, the intangible assets from internal research and development account for33.15% of total intangible assets (as at 31 December 2013:30.26%).
As at 31 December 2014, land use rights with the book value of RMB8,088,768.26 (as at 31 December 2013: RMB93,334,584.97) are restricted. During 2014, the amortization of the land use rights is RMB218,615.28 (2013: RMB3,794,132.27). Including, the restricted land use rights with the book value of RMB5,544,016.02 (2013: RMB2,613,529.28) was mortgaged to obtain loans. Refer to note V 21.
As at 31 December 2014, there is no intangible assets whose certificate of title is not completed (As at 31 December 2013: Nil).
15. Development expenditure
2014
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Addition||Deduction|||||
||||||||||Charged to income|||
||Item||Beginning balance||Internal research and||Recognized as||||Ending balance|
||||||||||Statement of the|||
||||||development||intangible assets|||||
||||||||||current year|||
|AutomobileDevelopment||685,666,604.48||609,676,788.84||571,558,173.67||95,939,764.65||627,845,455.00||

2013
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Deduction|||||
||||||||||Charged to income|||
||Item||Beginning balance||Adition||Recognized as||||Ending balance|
||||||||||Statement of the|||
||||||||intangible assets|||||
||||||||||current year|||
|AutomobileDevelopment||373,059,730.66||515,162,564.44||182,764,266.45||19,791,424.17||685,666,604.48||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
16. Goodwill
2014 and 2013
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Addition|Deduction|||
||Investee||Beginning balance||Business combinationunder common control|||Ending balance|
|||||||Disposal|||
|Hebei Changan Automobile Co.,Ltd.||9,804,394.00||-||-|9,804,394.00||
|Nanjing Changan AutomobileCo., Ltd.||-||-||-|-||
||Total|9,804,394.00||-||-|9,804,394.00||

 Movement of provision for the impairment of goodwill is as follow:
2014 and 2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Addition||Deduction|||
||Investee||Beginning balance|Accrual||Disposal|||Ending balance|
|Nanjing ChanganAutomobile Co., Ltd.||73,465,335.00||-||-||73,465,335.00||

Due to the accumulated losses of Nanjing Changan Automobile Co., Ltd., the full provision for the impairment loss has been made to the related goodwill of RMB73,465,335.00.
17. Long-term deferred expenses
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item||Beginning balance||Addition|Amortization||Ending|
|||||||||balance|
|Long-term deferred expenses||1,410,228.76||728,246.27||450,611.71|1,687,863.32||

 2013
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition|Amortization||Ending|
||||balance|||||balance|
|Long-term deferred expenses||2,055,164.45||1,194,167.19||1,839,102.88|1,410,228.76||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
18. Deferred tax assets and liabilities
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||2014||||2013|||
||||Deductible||||Deductible|||
||||||||||Deferred taxassets|
||Deferred tax assets：||temporary||Deferred tax assets||temporary|||
||||differences||||differences|||
|Provision for the impairment ofassets||750,544,057.27||112,581,608.59||646,665,033.44||96,999,755.02||
|Accrued expenses andcontingent liabilities||3,603,789,292.79||540,568,393.92||2,605,313,935.79||390,797,090.37||
|Unpaid tech developmentexpense and advertisementexpense||132,275,013.20||19,841,251.98||264,175,587.81||39,626,338.17||
|Deferred income||2,380,309,239.59||357,046,385.94||2,424,031,846.05||363,604,776.91||
|Unpaid salary and bonus andothers||851,526,238.10||130,547,132.15||716,740,820.12||107,407,841.52||
||Total|7,718,443,840.95||1,160,584,772.58||6,656,927,223.21||998,435,801.99||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||2014||||2013|||
||||Taxable temporary||Deferred tax||Taxable temporary||Deferred taxliabilities|
||Deferred tax liabilities：|||||||||
||||differences||liabilities||differences|||
|Available-for-sale financialassets on the changes infair value||372,767,500.00||55,915,125.00||228,722,844.29||41,842,961.06||

(2) The deductible loss of unrecognized deferred tax assets and the maturity
|||||||
|-|-|-|-|-|-|
||Year||2014||2013(Restated)|
|2014||-||9,499,981.79||
|2015||47,892,050.50||47,892,050.50||
|2016||298,254,160.23||298,254,160.23||
|2017||284,843,562.52||284,843,562.52||
|2018||489,799,407.80||489,799,407.80||
|2019||827,843,122.05||-||
||Total|1,948,632,303.10||1,130,289,162.84||

 Note: Due to the uncertainty of whether there will be enough taxable profit in the further to utilize the above deductible loss, no deferred tax assets have been recognized for the deductible loss.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
19. Provision for the impairment of assets
2014
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Beginning||||Deduction|||||
||Item||||Addition||||||Ending|
||||(Restated)||||Reversal||Write-off|||
|I. Bad debt provision||92,434,410.49||10,376,133.79||6,754,022.62||24,764,270.00||71,292,251.66||
|II. Provision for obsoleteinventory||221,303,242.88||138,842,996.98||6,125,183.90||199,425,246.81||154,595,809.15||
|III. Provision for theimpairment of fixed assets||459,227,648.54||185,945,320.19||-||48,644,868.32||596,528,100.41||
|IV. Provision for theimpairment of intangibleassets||76,176,660.79||21,319,804.81||-||-||97,496,465.60||
|V. Provision for theimpairment of constructionin progress||10,458,678.57||-||-||-||10,458,678.57||
|VI. Provision for theimpairment of goodwill||73,465,335.00||-||-||-||73,465,335.00||
||Total|933,065,976.27||356,484,255.77||12,879,206.52||272,834,385.13||1,003,836,640.39||

 Note: The increase of impairment of fixed assets is mainly due to the impairment of machinery and mould for the discontinued productions this year.
The increase of impairment of intangible assets is mainly due to the impairment of the non-patent technology for the discontinued productions.
The impairment of inventory is mainly due to the cost of some vehicle and engine is lower than the net realizable value.
2013(Restated)
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Deduction|||||
||Item||Beginning||Addition||||||Ending|
||||||||Reversal||Write-off|||
|I. Bad debt provision||96,977,572.46||8,660,734.27||4,913,646.95||8,290,249.29||92,434,410.49||
|II. Provision for obsoleteinventory||197,960,632.17||131,259,864.39||1,940,609.52||105,976,644.16||221,303,242.88||
|III. Provision for theimpairment of fixedassets||510,617,502.85||158,960,115.08||-||210,349,969.39||459,227,648.54||
|IV. Provision for theimpairment of intangibleassets||15,826,515.83||67,050,144.96||-||6,700,000.00||76,176,660.79||
|V. Provision for theimpairment ofconstruction in progress||10,458,678.57||-||-||-||10,458,678.57||
|VI. Provision for theimpairment of goodwill||73,465,335.00||-||-||-||73,465,335.00||
||Total|905,306,236.88||365,930,858.70||6,854,256.47||331,316,862.84||933,065,976.27||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
20. Other non-current assets
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Prepayment of land(Note )||60,901,712.09||244,336,881.52||

Note：The prepayment of land is paid to acquire the land use right.
21. Short-term loans
Classification of short-termloans：
|||||||
|-|-|-|-|-|-|
||Item||2014||2013 (Restated)|
|Mortgage loans||50,000,000.00||30,000,000.00||
|Credit loans||40,000,000.00||1,468,000,000.00||
||Total|90,000,000.00||1,498,000,000.00||

 As at 31 December 2014, the interest rate of the above loans was5.90%-6.30% (as at 31 December 2013:4.92%-7.20%).
As at 31 December 2014, there is no short-term loan which is due but not repaid (as at 31 December 2013: Nil). For the year ended 31 December 2014, the Group obtained short-term loan of RMB50,000,000.00 and commercial acceptance bill of RMB50,000,000.00 from China South Industry Group Finance Co., Ltd. The credit was secured the mortgages of the land use rights amounted to RMB5,544,016.02, buildings amounted to RMB30,278,453.44, and accounts receivable amounted to RMB188,803,148.85.
For the year ended 31 December 2013, the Group obtained short-term loan of RMB30,000,000.00 from China CITIC Bank. The loan was secured by the mortgages of the land use rights amounted to RMB2,613,529.28, buildings amounted to RMB4,632,076.69 and machinery amounted to RMB28,637,786.47.
22. Notes payable
|||||||
|-|-|-|-|-|-|
||Item||2014||2013 (Restated)|
|Commercial acceptance bill||217,000,000.00||226,946,025.00||
|Bank acceptance bill||12,891,623,397.32||9,350,708,650.13||
||Total|13,108,623,397.32||9,577,654,675.13||

 As at 31 December 2014, there is no unpaid notes payable at maturity (as at 31 December 2013: Nil)
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
23. Accounts payable
(1) Accounts payable
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Accounts payable||13,038,793,688.31||7,963,798,219.72||

 (2) As at 31 December 2014, there is no accounts payable aged over one year.
24. Advances from customers
(1) Advances from customers
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Advances from customers||5,802,717,284.79||4,260,282,749.23||

 (2) As at 31 December 2014, the advances from customers of RMB104,010,171.30 aged over one year is mainly credit guarantee charged to dealers.
25. Payroll payable
2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning (Restated)||Addition||Deduction||Ending|
|Short term salarybenefits||748,146,430.81||3,752,953,931.38||3,547,257,485.31||953,842,876.88||
|Defined contributionplans||64,538,658.71||332,717,685.98||334,288,556.77||62,967,787.92||
|Early retirementbenefits||7,911,000.00||5,372,000.00||7,724,000.00||5,559,000.00||
||Total|820,596,089.52||4,091,043,617.36||3,889,270,042.08||1,022,369,664.80||

 2013 (Restated)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Short term salarybenefits||374,889,623.36||3,013,188,999.92||2,639,932,192.47||748,146,430.81||
|Defined contributionplans||67,225,586.68||250,440,788.73||253,127,716.70||64,538,658.71||
|Early retirementbenefits||10,474,000.00||8,048,000.00||10,611,000.00||7,911,000.00||
||Total|452,589,210.04||3,271,677,788.65||2,903,670,909.17||820,596,089.52||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
25. Payroll payable (continued)
Short term salarybenefits：
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item|Beginning (Restated)||Addition||Deduction||Ending|
|Salary, bonus, allowanceand subsidy||475,975,263.71|3,078,801,722.05||2,862,521,208.58||692,255,777.18||
|Employee benefit||199,845,915.15|230,654,422.34||259,934,165.67||170,566,171.82||
|Social insurance||(8,340,240.75)|167,734,161.12||166,590,483.70||(7,196,563.33)||
|Medical insurance||(8,051,064.22)|146,424,856.76||146,102,030.73||(7,728,238.19)||
|Industrial injuryinsurance||(867,720.06)|9,576,763.89||10,007,414.81||(1,298,370.98)||
|Maternity insurance||578,543.53|11,732,540.47||10,481,038.16||1,830,045.84||
|Housing accumulation fund||70,370,340.91|200,333,755.23||182,846,099.15||87,857,996.99||
|Labor fund and employeeeducation fund||10,295,151.79|75,429,870.64||75,365,528.21||10,359,494.22||
||Total|748,146,430.81|3,752,953,931.38||3,547,257,485.31||953,842,876.88||

 2013(Restated)
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item|Beginning||Addition||Deduction||Ending|
|Salary, bonus, allowanceand subsidy||297,622,702.66|2,285,039,377.84||2,106,686,816.79||475,975,263.71||
|Employee benefit||285,124.58|334,681,727.35||135,120,936.78||199,845,915.15||
|Social insurance||(5,064,678.13)|115,247,801.12||118,523,363.74||(8,340,240.75)||
|Medical insurance||(5,388,584.84)|99,725,477.96||102,387,957.34||(8,051,064.22)||
|Industrial injury insurance||(74,881.05)|6,914,044.24||7,706,883.25||(867,720.06)||
|Maternity insurance||398,787.76|8,608,278.92||8,428,523.15||578,543.53||
|Housing accumulation fund||76,541,750.36|219,285,315.93||225,456,725.38||70,370,340.91||
|Labor fund and employeeeducation fund||5,504,723.89|58,934,777.68||54,144,349.78||10,295,151.79||
||Total|374,889,623.36|3,013,188,999.92||2,639,932,192.47||748,146,430.81||

 Defined contributionplans：
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item|Beginning (Restated)||Addition||Deduction||Ending|
|Basic retirement security||64,928,521.93|300,516,615.79||307,638,218.19||57,806,919.53||
|Unemployment insurance||(389,863.22)|32,201,070.19||26,650,338.58||5,160,868.39||
||Total|64,538,658.71|332,717,685.98||334,288,556.77||62,967,787.92||

 2013(Restated)
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item|Beginning||Addition||Deduction||Ending|
|Basic retirement security||66,561,260.13|234,608,700.44||236,241,438.64||64,928,521.93||
|Unemployment insurance||664,326.55|15,832,088.29||16,886,278.06||(389,863.22)||
||Total|67,225,586.68|250,440,788.73||253,127,716.70||64,538,658.71||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
25. Payroll payable (continued)
As at 31 December 2014 and 2013, there is no balance which is in arrears.
The salary, bonus, allowance and subsidy, employee benefits and other social insurances mentioned above are arranged to pay within time limit according to related laws and regulations and sets of the Group.
26. Taxes payable
|||||||
|-|-|-|-|-|-|
||Item||2014||2013 (Restated)|
|Value-added tax||(539,064,710.78)||(201,192,520.94)||
|Consumption tax||401,279,837.43||308,331,120.21||
|Business tax||282,714.01||774,277.54||
|Corporate income tax||141,452,158.87||(35,315,345.50)||
|Individual Income tax||1,652,891.26||2,342,059.73||
|City maintenance and construction tax||11,004,722.20||17,174,390.28||
|Education surcharge||7,281,955.73||12,041,066.91||
|Others||12,134,437.82||9,534,551.92||
||Total|36,024,006.54||113,689,600.15||

 27. Interest payable
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Long-term loan interest||-||3,917,361.11||
|Short-term loan interest||-||738,351.38||
|Corporate bonds interest||73,458,000.00||73,458,000.00||
||Total|73,458,000.00||78,113,712.49||

 28. Dividend payable
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Dividend payable – Hebei Changanminority interests||79,742.80||79,742.80||

29. Other payables
(1) Details of other payables
|||||||
|-|-|-|-|-|-|
||Item||2014||2013 (Restated)|
|Dealer earnest money||80,536,502.50||150,012,597.08||
|Warranty||166,479,977.35||22,273,965.45||
|Repair fees||112,281,336.33||185,746,575.98||
|Advertisement fees||371,576,347.22||198,835,065.92||
|Warehousing and transport fees||366,946,572.75||216,289,028.04||
|Loans temporarily||2,933,577.79||22,030,326.70||
|Project funds||864,715,976.54||823,024,925.55||
|Others||41,946,345.10||161,620,288.73||
||Total|2,007,416,635.58||1,779,832,773.45||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
29. Other payables (continued)
(2) As at 31 December 2014, RMB165,909,930.29 of other payables aged over one year were mainly security deposits from dealers and suppliers.
30. Contingent liabilities
2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Warranty||1,117,167,286.59||1,003,462,139.82||899,514,545.91||1,221,114,880.50||

 2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Warranty||676,261,668.40||934,221,163.44||493,315,545.25||1,117,167,286.59||

 Note: Warranty is the estimated repair expenses for the sold vehicles within warranty period.
31. Long-term loans within one year
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Credit loans||-||520,000,000.00||
||Total|-||520,000,000.00||

 32. Other current liabilities
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Accrued utilities||21,061,398.76||13,205,988.82||
|Accrued transportation fee||415,843,773.77||380,523,308.93||
|Accrued labor service fee||61,730,677.11||21,407,047.55||
|Accrued technology royalty||117,420,347.70||42,497,027.01||
|Accrued commercial discount payable||1,766,670,010.35||1,236,916,077.71||
|Accrued market development expense||172,731,573.72||154,394,367.01||
|Accrued extened warranty||315,400,000.00||-||
|Others||51,041,190.27||46,683,285.09||
||Total|2,921,898,971.68||1,895,627,102.12||

 33. Long-term loans
The classification of long-term loans is as follows:
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Credit loans||-||1,270,000,000.00||
||Total|-||1,270,000,000.00||

 As at 31 December 2014, the Group had no long-term loan. As at 31 December 2013, the annual interest rate of
long-term loans ranged from5.220% to5.535%。
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
34. Bonds payables
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Corporate bonds||1,971,184,679.89||1,967,266,759.93||

 With approval of circular Zheng Jian Xu Ke[2012] No. 388 issued by China Securities Regulatory Commission, the Company issued bonds with the face value of RMB1,980,000,000.00 to the public. The face interest rate is fixed at5.30% and the interests shall be repaid annually on 23 April each year. The final redemption date is 23 April 2017. After the deduction of issuance costs amounted to RMB19,589,600.00, the Company raised RMB1,960,410,400.00 totally. The bond is guaranteed by China Changan unconditionally and irrevocably. Bonds payable is measured at amortized cost using the effective interest.
Movement of bonds payables is as follows as at 31 December 2014:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||Beginning||Accrued interest|Amortization||Paid interest||Ending|
|Bonds payable|1,967,266,759.93||104,940,000.00||3,917,919.96|104,940,000.00||1,971,184,679.89||

 Movement of bonds payables is as follows as at 31 December 2013:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||Beginning||Accrued interest|Amortization||Paid interest||Ending|
|Bonds payable|1,963,348,839.97||104,940,000.00||3,917,919.96|104,940,000.00||1,967,266,759.93||

 35. Long-term payroll payable
|||||||
|-|-|-|-|-|-|
||Item||2014||2013 (Restated)|
|Net obligation of defined benefit plan||31,249,000.00||26,909,000.00||
|Early retirement||17,068,000.00||22,418,000.00||
||Total|48,317,000.00||49,327,000.00||

 In addition to basic retirement security and unemployment insurance, which are managed by local government, the Group offers different kinds of overall pension and annual compensation to some retired employees until their death. The Group also offered early-retired salary, social insurances and housing accumulation fund with different standards until their formal retirement (Male: Age 60; Female: Age 50 or 55). These amounts of social insurances and housing accumulation fund are based on cost base and statutory proportion.
The present value of the defined benefits planis is valued by expected cumulative welfare units determination, which was ensured by Mercer, a member of Acturial Society of Hongkong as at 31 December 2014.
The key actuarial assumptions as at 31 December 2014 are as follows:
||||
|-|-|-|
||Discount rate||
|Retirement Staff||3.7%~3.8%|
|Early retirement staff||3.3%~3.5%|
||Retirement age||
|Male||60|
|Female||50/55|
||Increase rate of key benefits||
|Retired employees||0.0%~4.0%|
|Early-retired employees||0.0%~4.0%|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
35. Long-term payroll payable (continued)
The future mortality rate is based on China experience life table of life insurance(2000-2003) “CL(2000-2003)”, the table is a public statistics in PRC.
As 31 December 2013, the difference in the net obligation of defined benefit plan caused by the change of actuarial assumptions above was immaterial.
The sensitive analysis of the key assumption as at 31 December 2014 is as follows:
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Increase||Increase/(Decrease) in the obligation||Decrease||Increase/(Decrease) in the obligation|
|||||of defined benefits plan||||of defined benefits plan|
|||%||||%|||
|Discount rate|0.05%||(1,851,000.00)||0.05%||1,586,000.00||
|Increase rate ofkey benefits|0.05%||1,640,000.00||0.05%||(1,913,000.00)||
|Mortality rate|5%||(465,000.00)||5%||457,000.00||

 The sensitive analysis above is based on the deduction to reasonable change of key assumption as at the balance sheet date.
Related costs charged to income statement are asfollows：
|||||
|-|-|-|-|
||||2014|
|Service costs- current period||45,000.00||
|Service costs- prior period||2,293,000.00||
|Interest costs||1,306,000.00||
||Post employment benefits, net||3,644,000.00|
|Recorded in general administrative expenses||3,644,000.00||

 The movement of present value of defined benefits plan is as follows:
|||||
|-|-|-|-|
||||Obiligation of defined benefits plan|
|2014||||
|Beginning balance||26,909,000.00||
|Charged to income Statement of the current period||||
|Service costs- current period||45,000.00||
|Service costs- prior period||2,293,000.00||
|Interest expense, net||1,306,000.00||
|Actuarial losses charged to other comprehensive income||3,134,000.00||
|Benefits Payment||(2,438,000.00)||
||Ending balance||31,249,000.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
36. Special payables
2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Project 863||5,204,918.01||6,780,000.00||9,983,381.03||2,001,536.98||
|Test on key technology of hybrid electricvehicles||4,188,977.29||1,320,000.00||934,953.71||4,574,023.58||
|New vehicle product||6,236,251.01||-||308,674.81||5,927,576.20||
|Automobile product chain sharing platform||4,810,605.54||-||57,478.00||4,753,127.54||
|Gasoline Engine Development||5,745,355.86||5,587,800.00||5,910,414.42||5,422,741.44||
|Development and industrialization of theembedded software platform for automotiveelectronic controllers||5,420,449.76||-||5,156,902.06||263,547.70||
|Changan automobile E class Gasoline enginecylinder block, cylinder head production lineproject||61,420,000.00||-||959,477.36||60,460,522.64||
|Land relocation compensation||55,350,709.40||-||||55,350,709.40||
|Project 973||187,806.82||-||25,986.00||161,820.82||
|Automotive order to delivery system project||475,689.00||-||||475,689.00||
|Industrialization of patented technologies||593,000.00||955,000.00||201,920.00||1,346,080.00||
|Vehicle network intelligent information terminalmiddleware key technologies research andapplication||848,115.03||-||905,021.33||(56,906.30)||
|Development and industrialization of C206 pureelectric cars||52,344,341.83||5,369,240.00||65,748,428.33||(8,034,846.50)||
|System development of electromagneticcompatibility of key accessories on electric cars||457,826.30||300,000.00||522,929.24||234,897.06||
|Others||10,346,156.65||6,928,018.33||3,518,759.41||13,755,415.57||
||Total|213,630,202.50||27,240,058.33||94,234,325.70||146,635,935.13||

 2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Project 863||22,372,753.50||16,644,400.00||33,812,235.49||5,204,918.01||
|Test on key technology of hybrid electricvehicles||286,473.08||4,720,000.00||817,495.79||4,188,977.29||
|New Vehicle product||5,811,359.41||1,820,000.00||1,395,108.40||6,236,251.01||
|Automobile product chain sharing platform||4,360,605.54||450,000.00||-||4,810,605.54||
|Gasoline Engine Development||2,076,615.10||4,480,000.00||811,259.24||5,745,355.86||
|Development and industrialization of theembedded software platform for automotiveelectronic controllers||5,817,004.87||-||396,555.11||5,420,449.76||
|Changan automobile E class Gasoline enginecylinder block, cylinder head production lineproject||22,660,000.00||38,760,000.00||-||61,420,000.00||
|Land relocation compensation||50,350,709.40||5,000,000.00||-||55,350,709.40||
|Project 973||313,490.50||890,000.00||1,015,683.68||187,806.82||
|Automotive order to delivery system project||991,047.00||-||515,358.00||475,689.00||
|Industrialization of patented technologies||593,000.00||-||-||593,000.00||
|Vehicle network intelligent information terminalmiddleware key technologies research andapplication||2,400,000.00||-||1,551,884.97||848,115.03||
|Development and industrialization of C206 pureelectric cars||-||80,000,000.00||27,655,658.17||52,344,341.83||
|System development of electromagneticcompatibility of key accessories on electric cars||-||500,000.00||42,173.70||457,826.30||
|Others||13,020,465.56||4,279,211.00||6,953,519.91||10,346,156.65||
||Total|131,053,523.96||157,543,611.00||74,966,932.46||213,630,202.50||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
37. Deferred income
2014
|||||||||
|-|-|-|-|-|-|-|-|
||Item||Beginning (Restated)|Addition||Deduction|Ending|
|Government grants relatedto assets||2,726,487,939.90||66,698,671.17|105,794,429.81||2,687,392,181.26|

2013(Restated)
|||||||||
|-|-|-|-|-|-|-|-|
||Item||Beginning|Addition||Deduction|Ending|
|Government grants relatedto assets||2,664,814,288.58||160,246,599.00|98,572,947.68||2,726,487,939.90|

As at 31 December 2014, details of liabilities related to government grants are as follows:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Recorded to|||||
||Item||Beginning (Restated)|Addition||non-operating||Ending||Relates to|
|||||||||||asset/gain|
|||||||income|||||
|Subsidies for the automobile comprehensivetesting ground project||575,820,000.00||-|4,502,583.34||571,317,416.66||Relates to asset||
|Funds for Yuzui motor city project||261,448,979.59||-|5,683,673.47||255,765,306.12||Relates to asset||
|Funds for Beijing Changan project||1,127,868,191.68||-|31,059,112.56||1,096,809,079.12||Relates to asset||
|Funds for technology innovation||16,150,000.00||-|-||16,150,000.00||Relates to asset||
|Funds for expansion of production capacity ofauto mold||17,420,000.00||-|-||17,420,000.00||Relates to asset||
|Funds for H series engine||58,666,666.68||-|5,333,333.30||53,333,333.38||Relates to asset||
|Industry upgrading project for smalldisplacement engine and technologicaltransformation project for CB type engineproduction line||156,517,361.12||-|15,965,833.32||140,551,527.80||Relates to asset||
|Expansion of production capacity project||62,408,576.68||-|6,215,637.84||56,192,938.84||Relates to asset||
|Subsidies for the construction of Hebei newplant||25,440,000.00||-|2,740,000.00||22,700,000.00||Relates to asset||
|Funds for the project of Ministry of Industry andInformation Technology||5,000,000.00||-|-||5,000,000.00||Relates to asset||
|Subsidies for engine produce base of NanjingChangan||9,545,952.00||-|-||9,545,952.00||Relates to asset||
|Light vehicle technical transformation project ofBaoding Changan Bus||143,700,647.00||13,000,000.00|6,200,000.00||150,500,647.00||Relates to asset||
|Subsidies for initial capital of new basebut andresearch and development||266,501,565.15||-|27,955,367.09||238,546,198.06||Relates to asset||
|Premium rebate from Dingzhou local bureauof finance||-||10,900,818.41|-||10,900,818.41||Relates to asset||
|Hebei M201 bus production plant project||-||4,000,000.00|138,888.89||3,861,111.11||Relates to asset||
|Producitization of automobile lightweightcomponents||-||23,697,013.51|-||23,697,013.51||Relates to asset||
|Development and industrial application ofhigh-effective and cleanturbochargeddirect injection gasolineengine||-||10,022,200.00|-||10,022,200.00||Relates to asset||
|Development and industrial application ofthe intelligent vehicle terminal withBeidou compatible GPS||-||4,990,638.87|-||4,990,638.87||Relates to asset||
|Development of the key technology of thelaser micro texture on the surface ofenergy-efficient and anti-friction internalcombustion||-||88,000.38|-||88,000.38||Relates to asset||
||Total|2,726,487,939.90||66,698,671.17|105,794,429.81||2,687,392,181.26||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
37. Deferred income (continued)
As at 31 December 2013, details of liability related to government grants are as follows(Restated)：
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Recorded to|||||
||Item||Beginning||Addition||non-operating||Ending||Relates to|
||||||||||||asset/gain|
||||||||income|||||
|Subsidies for the automobile comprehensivetesting ground project||575,820,000.00||-||-||575,820,000.00||Relates to asset||
|Funds for Yuzui motor city project||267,132,653.06||-||5,683,673.47||261,448,979.59||Relates to asset||
|Funds for Beijing Changan project||1,158,927,304.24||-||31,059,112.56||1,127,868,191.68||Relates to asset||
|Funds for technology innovation||16,150,000.00||-||-||16,150,000.00||Relates to asset||
|Funds for expansion of production capacity ofauto mold||17,420,000.00||-||-||17,420,000.00||Relates to asset||
|Funds for H series engine||64,000,000.00||-||5,333,333.32||58,666,666.68||Relates to asset||
|Industry upgrading project for smalldisplacement engine and technologicaltransformation project for CB type engineproduction line||172,483,194.45||-||15,965,833.33||156,517,361.12||Relates to asset||
|Expansion of production capacity project||68,624,215.16||-||6,215,638.48||62,408,576.68||Relates to asset||
|Subsidies for the construction of Hebei newplant||23,180,000.00||5,000,000.00||2,740,000.00||25,440,000.00||Relates to asset||
|Funds for the project of Ministry of Industry andInformation Technology||5,000,000.00||-||-||5,000,000.00||Relates to asset||
|Subsidies for engine produce base of NanjingChangan||-||9,545,952.00||-||9,545,952.00||Relates to asset||
|Light vehicle technical transformation projectof Baoding Changan Bus||-||145,700,647.00||2,000,000.00||143,700,647.00||Relates to asset||
|Subsidies for initial capital of new basebut andresearch and development||296,076,921.67||-||29,575,356.52||266,501,565.15||Relates to asset||
||Total|2,664,814,288.58||160,246,599.00||98,572,947.68||2,726,487,939.90||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
38. Share capital
As at 31 December 2014 the registered and paid-in share capital of the Company was RMB4,662,886,108.00 (As at 31 December 2013: RMB4,662,886,108.00); the face value of each share is RMB1.00, and the category and structure of the shares are as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Movement|||||||||||
||||||||||Transfer of|||||||||
||||||||Stock||||||||||31 December|
||||31 December 2013||Issuance of shares||||reserve to||Repurchase||Others||Sub-total|||
||||||||dividend||||||||||2014|
||||||||||common shares|||||||||
|I.|Restricted shares|||||||||||||||||
|1|State-owned shares|-||-||-||-||-||-||-||-||
|2|Shares held by state-owned legal persons|373,358,342||-||-||-||-||-||-||373,358,342||
|3|Other domestic shares|-||-||-||-||-||-||-||-||
||Including:|||||||||||||||||
||Shares held by non-state-owned legalpersons|-||-||-||-||-||-||-||-||
||Shares held by legal persons|17,246||-||-||-||-||5,965||-||23,211||
||Shares held by domestic natural person|-||-||-||-||-||-||-||-||
|4|Foreign Shares|||||||||||||||||
||Including:|-||-||-||-||-||-||-||-||
||Shares held by foreign legal persons|-||-||-||-||-||-||-||-||
||Shares held by foreign natural persons|||||||||||||||||
|Total of restricted shares||373,375,588||-||-||-||-||5,965||-||373,381,553||
|II.|Unrestricted shares|||||||||||||||||
|1|RMB ordinary shares|3,387,524,378||-||-||-||-||(5,965)||-||3,387,518,413||
|2|Foreign-funded shares listed domestically|901,986,142||-||-||-||-||-||-||901,986,142||
|3|Foreign-funded shares listed overseas|-||-||-||-||-||-||-||-||
|4|Others|-||-||-||-||-||-||-||-||
|Total of unrestricted shares||4,289,510,520||||-||-||-||(5,965)||-||4,289,504,555||
|III.|Total shares|4,662,886,108||-||-||-||-||-||-||4,662,886,108||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
38. Share capital (continued)
2013
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Movement|||||||||||
||||||||||Transfer of reserve to|||||||||
||||31 December, 2012||Issuance of shares||Stock dividend||||Repurchase||Others||Sub-total||31 December 2013|
||||||||||common shares|||||||||
|I.|Restricted shares|||||||||||||||||
|1|State-owned shares|-||-||-||-||-||-||-||-||
|2|Shares held by state-owned legal persons|373,358,342||-||-||-||-||-||-||373,358,342||
|3|Other domestic shares|-||-||-||-||-||-||-||-||
||Including:|||||||||||||||||
||Shares held by non-state-owned legal persons|-||-||-||-||-||-||-||-||
||Shares held by legal persons|17,246||-||-||-||-||-||-||17,246||
||Shares held by domestic natural person|-||-||-||-||-||-||-||-||
|4|Foreign Shares|||||||||||||||||
||Including:|-||-||-||-||-||-||-||-||
||Shares held by foreign legal persons|-||-||-||-||-||-||-||-||
||Shares held by foreign natural persons|||||||||||||||||
|Total of restricted shares||373,375,588||||-||-||-||-||-||373,375,588||
|II.|Unrestricted shares|||||||||||||||||
|1|RMBordinary shares|3,387,524,378||-||-||-||-||-||-||3,387,524,378||
|2|Foreign-funded shares listed domestically|901,986,142||-||-||-||-||-||||901,986,142||
|3|Foreign-funded shares listed overseas|-||-||-||-||-||-||-||-||
|4|Others|-||-||-||-||-||-||-||-||
|Total of unrestricted shares||4,289,510,520||||-||-||-||-||-||4,289,510,520||
|III.|Total shares|4,662,886,108||-||-||-||-||-||-||4,662,886,108||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
39. Capital reserves
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item||Beginning (Restated)|Addition||Deduction||Ending|
|Share premium||3,564,758,021.71||344,550.94|439,980,000.00||3,125,122,572.65||
|Capital reserve transferredarising from the oldstandards||44,496,899.00||-|-||44,496,899.00||
|Restricted capital reserve ofequity investments||17,015,985.20||-|-||17,015,985.20||
|Others||40,935,215.86||-|81,351.88||40,853,863.98||
||Total|3,667,206,121.77||344,550.94|440,061,351.88||3,227,489,320.83||

 2013(Restated)
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item||Beginning|Addition||Deduction||Ending|
|Share premium||3,494,539,975.00||100,000,000.00|29,781,953.29||3,564,758,021.71||
|Capital reserve transferredarising from the oldstandards||44,496,899.00||-|-||44,496,899.00||
|Restricted capital reserve ofequity investments||17,015,985.20||-|-||17,015,985.20||
|Others||40,935,215.86||-|-||40,935,215.86||
||Total|3,596,988,075.06||100,000,000.00|29,781,953.29||3,667,206,121.77||

 The addition of share premium was due to the purchase of minority interest of Hebei Changan Automobile Co., Ltd. amounted to RMB344,550.94; The deduction of share premium was due to the purchase of100% of Hefei Changhe Automobile Co.,Ltd.’s share amounted to RMB439,980,000.00. The deduction of other capital reserve was due to transferring1% of the share of Chongqing Changan Suzuki Automobile Co. amounted to RMB81,351.88.
40. Other comprehensive income
The accumulated other comprehensive income in balance sheet attributable to parent company:
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||1 January 2013||Movement||31 December 2013||Movement||31 December 2014|
|Change in net liability orassest from definedbenefitplan||-||-||-||556,000.00||556,000.00||
|Profits generated fromavailable for sale financialassets||167,475,896.22||19,403,987.00||186,879,883.22||129,972,491.77||316,852,374.99||
|Foreign currency translationdifference||(16,160,551.29)||1,270,030.45||(14,890,520.84)||(10,504,456.91)||(25,394,977.75)||
||Total|151,315,344.93||20,674,017.45||171,989,362.38||120,024,034.86||292,013,397.24||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
40. Other comprehensive income (continued)
The current occurance amount of other comprehensive income in income statement attributable to parent company:
2014
||||||||
|-|-|-|-|-|-|-|
|||Amount before tax||Income tax||Amount afer tax|
||Other comprehensive income not to be||||||
||reclassified to profit or loss in subsequent period||||||
|Change in net liability or assest from definedbenefit plan||556,000.00|-||556,000.00||
||Subtotal|556,000.00|-||556,000.00||
||Other comprehensive income will be reclassified||||||
||to profit or loss in subsequent period||||||
||Fair value change of available for sale financial|218,813,296.00|(32,764,324.00)||186,048,972.00||
||assets||||||
|Deduct ： amounts transferred to incomestatement which were recoginzed in othercomprehensive income in prior period||74,768,640.29|(18,692,160.06)||56,076,480.23||
||Subtotal|144,044,655.71|(14,072,163.94)||129,972,491.77||
||Foreign currency translation difference|(10,504,456.91)|-||(10,504,456.91)||
||Subtotal|(10,504,456.91)|-||(10,504,456.91)||

 2013 (Restated)
|||||||
|-|-|-|-|-|-|
||Pre tax amount||Income tax||Amount afer tax|
|Other comprehensive income will be reclassified||||||
|to profit or loss in subsequent period||||||
|Fair value change of available for sale financial|23,505,316.00|(4,101,329.00)||19,403,987.00||
|assets||||||
|Subtotal|23,505,316.00|(4,101,329.00)||19,403,987.00||
|Foreign currency translation difference|1,270,030.45|-||1,270,030.45||
|Subtotal|1,270,030.45|-||1,270,030.45||

 41. Special reserves
2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Safety fund||1,670,967.02||35,299,178.61||29,105,295.69||7,864,849.94||

 2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Safety fund||-||28,431,299.68||26,760,332.66||1,670,967.02||

 The Group accrued safety fund according to the provision(NO.[2012]16<the Guidance of Safety Fund Accual andUsage>)issued by the Ministry of Finance and the State Administration of work safety on 14 February 14
2012 that enterprises in mining, gas production, transportation, metallurgy, machinery manufacturing and
building services should accue safety fund.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
42. Surplus reserves
2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Statutory surplus||1,816,272,976.53||515,170,077.47||-||2,331,443,054.00||

 2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Statutory surplus||1,441,483,901.26||374,789,075.27||-||1,816,272,976.53||

 The Company appropriated statutory surplus reserves amounted to10% of profit after tax.
43. Retained earnings
||||||
|-|-|-|-|-|
||Item||2014|2013|
|Retained earnings of prior year before adjustment||9,233,857,503.02||6,335,790,529.86|
|Combination under common control||(696,770,264.11)||(559,720,849.96)|
|Retained earnings of prior year after adjustment||8,537,087,238.91||5,776,069,679.90|
|Add: Net profits attributable to parent company for thecurrent year||7,561,081,585.81||3,368,591,105.89|
|Less: Appropriation to statutory surplus reserves||(515,170,077.47)||(374,789,075.27)|
|Ordinary share dividend of cash||(467,396,927.46)||(232,784,471.61)|
|Retained earnings at the end of year||15,115,601,819.79||8,537,087,238.91|

 Adjustment: since the combination under common control in 2014 causes change of consolidation scope, reducing retained earnings of the prior year by RMB696,770,264.11(2013:Reduce RMB559,720,849.96)
According to the resolution of the 32th meeting of the sixth session of the Board of Directors, the profit distribution plan of 2014 is as follow: on the base of the existing share capital of 4,662,886,108 shares, the Group will issue cash dividends of RMB2.50 to every 10 shares, RMB1,165,721,527.00 in total (tax included). This profit distribution plan should be approved in the annual general meeting.
44. Operating revenue and cost
(1) Operating revenue and cost
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item||2014|||2013(Restated)|||
||||Revenue||Cost|Revenue||Cost|
|Main business||52,025,768,622.09||42,565,918,023.75||38,313,479,709.10|31,656,659,292.30||
|Other business||887,563,478.74||699,907,840.12||828,223,341.09|812,899,195.55||
||Total|52,913,332,100.83||43,265,825,863.87||39,141,703,050.19|32,469,558,487.85||

 (2) Operating revenue listed as follows:
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Sale of goods||52,702,266,463.64||38,929,485,271.19||
|Outsourcing processing||211,065,637.19||212,217,779.00||
||Total|52,913,332,100.83||39,141,703,050.19||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
45. Business tax and surcharges
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Business tax||8,746,727.25||2,733,743.37||
|Consumption tax||1,710,437,955.34||1,038,445,132.38||
|City maintenance and construction tax||234,015,737.97||153,021,944.87||
|Educational surcharge||111,013,041.93||72,233,288.60||
|Others||131,264.42||676,520.27||
||Total|2,064,344,726.91||1,267,110,629.49||

 46. Operating expenses
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Payroll and welfare||276,676,308.66||201,648,361.36||
|Promotion and advertisement fee||889,135,693.15||721,820,224.62||
|Transportation expenses||1,565,809,376.14||1,383,278,494.64||
|Travelling expenses||65,524,575.42||64,336,087.61||
|Package expenses||12,828,823.23||13,466,932.83||
|Administrative expenses||26,551,531.56||12,683,725.97||
|Selling service fee||802,898,985.34||790,289,887.96||
|Sales discount||616,631,764.26||298,227,846.48||
|Others||101,111,590.78||71,808,210.56||
||Total|4,357,168,648.54||3,557,559,772.03||

 47. General and administrative expenses
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Payroll and welfare||1,243,198,304.73||936,385,540.44||
|Technology research expenses||1,401,539,716.34||1,111,770,155.75||
|Administrative expenses||196,013,864.34||199,409,909.51||
|Depreciation and amortization||469,240,599.55||393,701,628.13||
|Miscellaneous service charges||52,791,234.85||37,654,275.25||
|Tax fee||218,971,782.34||165,306,834.04||
|Traffic expenses||47,310,720.85||32,085,268.81||
|Travelling expenses||34,303,673.21||21,388,984.66||
|Entertainment expenses||8,634,317.42||22,858,476.51||
|Others||69,910,662.21||71,894,707.08||
||Total|3,741,914,875.84||2,992,455,780.18||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
48. Financial expenses
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Interest expense||190,891,792.12||213,523,380.08||
|Less: interest income||152,526,950.60||147,402,072.23||
|capitalized interest||117,119.22||2,814,221.50||
|Foreign exchange gain or loss||12,797,381.77||(792,628.28)||
|Others||15,028,935.99||12,028,302.15||
||Total|66,074,040.06||74,542,760.22||

 The capitalized interest cost had been recorded in construction in process.
49. Impairment loss on assets
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|1. Bad debt loss||3,622,111.17||3,747,087.32||
|2. Impairment provision of obsoleteinventory||132,717,813.08||129,319,254.87||
|3. Impairment provision of fixed assets||185,945,320.19||158,960,115.08||
|4. Impairment provision of intangibleassets||21,319,804.81||67,050,144.96||
||Total|343,605,049.25||359,076,602.23||

 50. Loss from fair value changes
|||||||
|-|-|-|-|-|-|
||Sources of fair value changes||2014||2013|
|Financial assets at fair value throughprofit or loss||-||(332,407.00)||
||Total|-||(332,407.00)||

 51. Investment income
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Long-term equity investment income underequity method||7,991,213,934.13||4,474,644,845.42||
|Investment loss through disposal of long-termequity investment||499,938.17||(250,733.75)||
|Investment income during holding period fromavailable-for-sale financial assets||34,539,013.46||32,208,203.42||
|Income from disposal of available-for-salefinancial assets||75,864,114.48||-||
||Total|8,102,117,000.24||4,506,602,315.09||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
52. Non-operating income
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Amount recognized|
||||||2013||in 2014 as|
||Item||2014|||||
||||||(Restated)||non-recurring profit|
||||||||and loss|
|Gain on the disposal of fixed assets||4,835,757.23||29,229,111.98||4,835,757.23||
|Gain on the disposal of intangible assets||-||3,652,513.99||-||
|Government grants||339,001,795.70||234,412,047.68||339,001,795.70||
|Others||57,832,624.18||23,193,973.28||57,832,624.18||
||Total|401,670,177.11||290,487,646.93||401,670,177.11||

 Government grants recognized as current income:
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Relates to|
||Item||2014||2013 (Restated)|||
||||||||asset/gain|
|Technology innovation and industrialization funds||-||89,755,000.00||Relates to gain||
|Tax refund||33,619,000.00||-||Relates to gain||
|Funds for Beijing Changan project||31,059,112.56||31,059,112.56||Relates to asset||
|Tax refund for new products||50,000,000.00||17,181,800.00||Relates to gain||
|Subsidy of Import Discount Interest from MOF||2,668,485.00||16,973,000.00||Relates to gain||
|Industry upgrading project for small displacementengine and technological transformation project forCB type engine production line||15,965,833.32||15,965,833.33||Relates to asset||
|Expansion of production capacity project||6,215,637.84||6,215,638.48||Relates to asset||
|Funds for Yuzui motor city project||5,683,673.47||5,683,673.47||Relates to asset||
|Funds for H series engine||5,333,333.30||5,333,333.32||Relates to asset||
|Government grants for technology researchexpenses||100,000,000.00||540,000.00||Relates to gain||
|Subsidies for the construction of Hebei new plant||2,740,000.00||2,740,000.00||Relates to asset||
|Light vehicle technical transformation project ofBaoding Changan Bus||6,200,000.00||2,000,000.00||Relates to asset||
|Subsidies for new base launching and R&D ofHefei||27,955,367.09||29,575,356.52||Relates to asset||
|R&D program for new energy auto||17,977,998.87||-||Relates to asset||
|Subsidies and rewards for career training||6,449,500.00||-||Relates to gain||
|Development fund for energy saving demonstrationprogram||4,560,000.00||-||Relates to gain||
|Comprehensive testing field program||4,502,583.34||-||Relates to asset||
|Subsidies for new energy automobile||5,000,000.00||5,000,000.00||Relates to gain||
|Subsidies for troubled enterprise||3,750,300.00||3,750,300.00||Relates to gain||
|Loan discount for industrial project||2,410,000.00||-||Relates to gain||
|Reward for transformation of scientific andtechnological achievements for passenger cars||1,000,000.00||-||Relates to gain||
|Production line remodeling project||138,888.89||-||Relates to asset||
|Others||5,772,082.02||2,639,000.00||Relates to gain||
||Total|339,001,795.70||234,412,047.68||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
53. Non-operating expenses
||||||||
|-|-|-|-|-|-|-|
|||||||Amount recognized as|
|||||2013|||
||Item|2014||||non-recurring profit|
|||||(Restated)|||
|||||||and loss|
|Loss on the disposal of fixed assets||22,128,955.42|18,631,996.52||22,128,955.42||
|Donation||3,329,731.68|6,585,829.09||3,329,731.68||
|Vehicle premium||4,041,120.00|1,027,400.00||4,041,120.00||
|Others||9,856,622.37|13,399,226.81||9,856,622.37||
||Total|39,356,429.47|39,644,452.42||39,356,429.47||

 54. Gross Profit
TheGroup’s expenses classified in accordance with nature are as follows
|||||
|-|-|-|-|
||2014||2013(Restated)|
|Raw materials consumed|40,245,890,589.98|27,668,624,856.01||
|Changes in the quantity of finished goodsand work in prosess inventory|(1,968,424,640.99)|35,425,637.60||
|Salaries|4,091,043,617.36|3,271,677,788.65||
|Promotion and advertisement fee|889,135,693.15|721,820,224.62||
|Transportation expenses|1,709,760,013.86|1,466,193,938.30||
|Sales discount|616,631,764.26|298,227,846.48||
|Sale services|802,898,985.34|790,289,887.96||
|Depreciation and amortization|1,984,693,377.36|1,691,745,522.32||
|Reseach and development costs|680,124,923.75|537,298,916.01||
|Taxation|218,971,782.34|165,306,834.04||
|Fuel expense|581,839,050.00|549,179,423.34||
|Financial expense|66,074,040.06|74,542,760.22||

 55. Income tax expense
The relationship between income tax expense and total profit before tax is as follows:
||||||
|-|-|-|-|-|
||Item|2014||2013|
|Current income tax expense||182,999,679.21|(13,762,198.93)||
|Deferred income tax expense||(162,148,970.59)|(139,168,615.79)||
||Total|20,850,708.62|(152,930,814.72)||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
55. Income tax expense (continued)
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Total profit||7,538,829,644.24||3,178,512,120.78||
|Tax at the applicable tax rate (Note)||1,507,765,928.85||635,702,424.16||
|Impact of non-uniform tax rates of branchesand subsidiaries||43,594,494.42||101,294,192.73||
|Adjustments to current income tax of previousperiod||4,523,142.10||(38,476,440.98)||
|Profit or loss attributable to joint ventures andassociates||(1,598,242,786.83)||(894,878,822.33)||
|Income not subject to tax||(6,859,030.40)||(6,270,640.68)||
|Non-deductible tax expense||27,776,786.34||40,129,879.81||
|Deductible loss of previous period||(1,234.06)||(1,320,923.40)||
|Unrecognized tax loss||169,598,878.02||122,449,851.96||
|Additional deduction arising fromresearch and development expense||(127,305,469.82)||(111,560,335.99)||
|Tax expense under actual tax rate of the Group||20,850,708.62||(152,930,814.72)||

 Note: The Group accrues the income tax according to the estimated taxable income acquired within PRC and offshore and suitable tax rate. The applicable tax rate for the Company is15% (Note IV), the applicable tax rate for the Company's Branch Changan Automobile (Beijing) Company is25%. As the Company and the branch are located in areas with different tax rates, according to the Circular of the State Administration of Taxation on Issues concerning the Collection and Administration of Consolidated Payments of Enterprise Income Tax by Trans-regional Enterprises (Guo Shui Han[2009] No. 221), the consolidated income tax should be filed by the Company, and the actual applicable tax rate for is20%. 56. Earnings per share (“EPS”)
The basic EPS is calculated by dividing the net profit of the current period attributable to the ordinary shareholders of the Company by the weighted average number of outstanding ordinary shares. In accordance with the terms of issuance contract, the number of ordinary shares in issue shall be calculated from the date consideration is receivable (which is generally the date of their issue).
The Company has no dilutive potential ordinary shares.
||||||
|-|-|-|-|-|
|||2014||2013(Restated)|
|Earnings|||||
|Net profit belong to ordinary shareholders|7,561,081,585.81||3,368,591,105.89||
|Shares|||||
|Weighted average ordinary shares|4,662,886,108||4,662,886,108||

 As at the balance sheet date and to the approval date of reporting, there is no event that may causes changes in ordinary shares or potential ordinary shares.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
57. Notes to cash flow statement
(1) The major cash received relating to other operating activities:
||||||
|-|-|-|-|-|
||Item||2014|2013(Restated)|
|Interest income||130,443,756.16||147,402,072.33|
|Government grants related to operatingactivities||210,176,603.31||909,898,611.00|
|Others||211,081.78||127,388,340.63|
||Total|340,831,441.25||1,184,689,023.96|

 (2) The major cash paid relating to other operating activities:
||||||
|-|-|-|-|-|
||Item||2014|2013(Restated)|
|Selling expense||2,964,255,746.27||3,356,118,403.42|
|Administrative expense||996,357,047.56||939,879,271.11|
|Others||241,472,713.84||522,527,708.42|
||Total|4,202,085,507.67||4,818,525,382.95|

 (3) The major cash received relating to other investing activities:
||||||
|-|-|-|-|-|
||Item||2014|2013(Restated)|
|Government grants related to assets||66,636,035.28||26,545,952.00|
|Others||-||5,000,000.00|
|Total||66,636,035.28||31,545,952.00|

 (4) The major cash paid relating to other investing activities
||||||
|-|-|-|-|-|
||Item||2014|2013(Restated)|
|Commission fee for acquisition||626,230.62||-|

 (5) The major cash received relating to other financing activities
||||||
|-|-|-|-|-|
||Item||2014|2013(Restated)|
|Withdraw for deposit of bill||374,843,241.92||332,208,572.31|
|Others||4,028.93||-|
|Total||374,847,270.36||332,208,572.31|

 (6) The major cash paid relating to other financing activities:
||||||
|-|-|-|-|-|
||Item||2014|2013(Restated)|
|Payment for deposit of bill||94,715,579.73||148,971,324.46|
|Purchased minority interest||288,000.00||9,028,000.00|
|Others||26,394.81||866,544.91|
||Total|95,029,974.54||158,865,869.37|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
58. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
|||||||
|-|-|-|-|-|-|
||Supplementary information||2014||2013(Restated)|
|1．Cash flows from operating activities calculatedby adjusting the net profit||||||
|Net profit||7,517,978,935.62||3,331,442,935.51||
|Add: impairment provision for assets||343,605,049.25||359,076,602.23||
|Depreciation of fixed assets||1,626,230,084.12||1,388,476,765.07||
|Depreciation and amortization of investmentproperty||338,961.68||563,667.66||
|Amortization of intangible assets||357,673,719.85||300,865,986.71||
|Amortization of long-term deferred expense||450,611.71||1,839,102.88||
|Amortization of deferred income||(105,794,429.81)||(98,572,947.68)||
|Disposal loss/(income) on fixed assets, intangibleassets and others long-term assets||17,293,198.19||(14,249,629.45)||
|Loss from fair value changes||-||332,407.00||
|Financial expense||190,891,792.12||213,523,380.08||
|Investment income||(8,102,117,000.24)||(4,506,602,315.09)||
|Increase in deferred tax assets||(162,148,970.59)||(139,168,615.79)||
|Decrease / (increase) in inventory||(1,969,852,568.02)||187,042,572.91||
|Increase in operating receivables||(6,972,345,425.13)||(3,490,601,990.85)||
|Increase in operating payables||11,034,405,635.60||4,001,515,460.22||
|Others||3,312,180.22||1,670,967.02||
|Net cash flows from operating activities||3,779,921,774.57||1,537,154,348.43||
|2．Movement of cash and cash equivalents||||||
|Ending balance of cash||9,362,853,917.71||3,942,941,861.56||
|Less: beginning balance of cash||3,942,941,861.56||3,892,344,582.36||
|Add: ending balance of cash equivalents||-||-||
|Less: beginning balance of cash equivalents||-||-||
|Increase in cash and cash equivalents||5,419,912,056.15||50,597,279.20||

 (2) The major non-cash investing and financing activities:
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
|Government grants related to assets||-||133,700,647.00||

 (3) Cash and cash equivalents
|||||||
|-|-|-|-|-|-|
||Item||2014||2013(Restated)|
||I. Cash|||||
|Including: Cash on hand||29,174.13||92,359.69||
|Bank deposits that can be readily used||9,362,824,743.58||3,942,849,501.87||
||Other monetary assets that can be readily used|-||-||
||II. Cash equivalents|9,362,853,917.71||3,942,941,861.56||
||III. Ending balance of cash and cash equivalents|||||

Note: The restricted cash and cash equivalents of the Group are not included in the cash and cash equivalents.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
59. Ownership or right of use restrained assets
|||||||||
|-|-|-|-|-|-|-|-|
||Item||2014||2013(Restated)||Notes|
|Cash and cash equivalents||330,229,580.07||592,884,110.99||Note 1||
|Accounts receivable||134,869,659.51||-||Note 2||
|Notes receivable||315,248,201.14||505,713,794.48||Note 3||
|Fixed assets||53,356,163.72||82,153,774.82||Note 2||
|Intagable assets||8,088,768.26||93,334,584.97||Note 2,Note 4||

 Note 1: As at 31 December 2014, the Group has no restricted time deposit for bank loan (2013: Nil).
As at 31 December 2014, the Group has restricted cash at banks amounted to RMB312,756,449.29 (As at 31 December 2013: RMB592,884,110.99) for the issuance of bank acceptance bill.
Note 2: As at 31 December 2014, accounts receivable with a book value of RMB188, 803,148.85 has been used as pledge, buildings and land use right with book value of RMB30,278,453.44 and RMB5,544,016.02 respectively as collateral to obtain RMB50,000,000.00 short-term loan and issue RMB50,000,000.00 bank acceptance bills from China South Industry Group Finance Co., Ltd. The amortization of the land use right in 2014 is RMB149,838.24.
In addition, buildings with a book value of RMB7,097,334.25 and machinery with a book value of RMB15,980,376.03 are still pledged for the estimated credit line application.
As at 31 December 2013, buildings with the book value of RMB15,275,072.70 , and machinery with the book value of RMB66,878,702.12 is restricted to get the credit line. Builings, machinery and land use right with the book value of RMB4,632,076.69, RMB28,637,786.47 and RMB2,613,529.28 respectively are used as collateral to obtain short-term loan of RMB30,000,000.00. The land use right has been amortized for amount of 68,777.04.
Note 3: As at 31 December 2014, notes receivable with a book value of RMB315,248,201.14 (31 December 2013:RMB505,713,794.48) has been used as pledged to issue bank acceptance bills.
Note 4: As at 31 December 2014, land use right with a book value of RMB2,544,752.24 is still pledged for the estimated credit line application and the amortization is amounted to RMB68,777.04 in 2014. As at 31 December 2013, except for the land use right with a book value of RMB2,613,529.28, another land use right with a book value of RMB90,721,055.69 are restrained to obtain credit line. The land use right has been amortized for amount of RMB3,725,355.23 in 2013.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
60. Foreign Monetary Item
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Item||2014||||||2013|||||
||||Original||Exchange||Translated to RMB||Original||Exchange||Translated to|
||||Currency||Rate||||Currency||Rate||RMB|
|Cash||||||||||||||
|USD||6,152,812.31||6.1190||37,649,058.51||6,217,289.68||6.1299||38,111,079.91||
|GBP||191,099.00||9.5437||1,823,791.53||728,381.00||10.0556||7,324,307.98||
|EUR||2,768,828.57||7.4556||20,643,278.29||1,483,992.00||8.4189||12,493,580.25||
|JPY||24,106,774.00||0.0514||1,238,389.09||31,781,915.00||0.0578||1,836,073.01||
|SUR||3,513,281.45||0.1105||388,217.60||-||-||-||
|Accountsreceivable||||||||||||||
|USD||24,571,500.79||6.1190||150,353,013.31||6,136,456.34||6.1299||37,615,863.72||
|GBP||694.73||9.5437||6,630.29||-||-||-||
|Otherreceivable||||||||||||||
|USD||230,120.50||6.1190||1,408,107.34||-||-||-||
|JPY||18,412,940.00||0.0514||945,891.14||-||-||-||
|EUR||1,061,736.00||7.4556||7,915,878.92||-||-||-||
|AccountsPayable||||||||||||||
|USD||5,354.86||6.1190||32,766.39||-||-||-||
|JPY||650,000.00||0.0514||33,391.15||-||-||-||
|EUR||1,055,649.00||7.4556||7,870,496.68||-||-||-||
|GBP||12,363.00||9.5437||117,988.76||-||-||-||
|OtherPayables||||||||||||||
|USD||12,975.39||6.1190||79,396.41||-||-||-||
|EUR||8,045.00||7.4556||59,980.30||-||-||-||
|GBP||468,701.34||9.5437||4,473,144.98||-||-||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
VI The change of consolidation scope
1. Combination under common control
In April 2014, the Company obtained100% equity of Heifei Changan Automobile Co., Ltd with amount of RMB439,980,000.00 from China Changan Automobile Group Co ,Ltd which is the parent company of both the Company and Hefei Changan then, hence the merger can be classified as combination under common control. The merger date is 10 April 2014, which is determined by the date when Hefei Administration for Industry and Commerce issued new business license to Heifei Changan. After the completion of combination, Hefei Changan becomes the wholly owned subsidiary of the Company.
|||||||
|-|-|-|-|-|-|
||Item||1 January 2014-10 April 2014||2013|
|Operating revenue||1,298,818.17||659,840,788.29||
|Net loss||(43,390,581.51)||137,049,414.15||
|Net cash flow||137,308,119.98||(134,334,520.87)||

 The balances of assets and liabilities of Heifei Changan on merger date and the prior balance sheet date are as follows:
|||||||
|-|-|-|-|-|-|
||Item||10 April 2014||31 December 2013|
|Assets||||||
|Cash||391,418,492.30||254,110,372.32||
|Accounts receivable||17,081,910.20||324,620,910.20||
|Prepayments||968,869.84||219,400.41||
|Other receivables||9,748,302.37||3,801,725.46||
|Inventories||8,770,072.40||6,469,377.13||
|Investment property||8,422,227.23||8,484,359.76||
|Fixed assets||616,693,525.19||632,229,134.91||
|Intangible assets||17,162,313.85||17,478,190.92||
|Liabilities||||||
|Short-term loans||140,000,000.00||240,000,000.00||
|Notes payable||208,963,580.77||188,872,715.33||
|Accounts payable||287,201,740.36||291,952,514.85||
|Advances from customers||2,295,237.31||2,281,215.63||
|Payroll payable||21,779,036.21||26,768,970.57||
|Taxes payable||(28,512,750.89)||(17,406,874.69)||
|Other payables||121,504,006.99||148,254,017.53||
|Non-current liabilities||281,667,097.40||287,932,565.15||
|Owners’ equity||||||
|Share capital||775,000,000.00||775,000,000.00||
|Capital reserves||528,610.85||528,610.85||
|Retained earnings||(740,160,845.62)||(696,770,264.11)||
|Equity attributable to owners||35,367,765.23||78,758,346.74||
|Add：Consolidated price difference (recognized in equity)||404,612,234.77||||
|Merger consideration||439,980,000.00||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Change of consolidation scope due to other reasons
(1) Establishment of new subsidiaries during reporting period
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||The Group’s|||||
||||||||||The Group’s total|||
||||Registered||Nature of||total|||||
||Company name||||||||voting right in||Notes|
||||Place||business||shareholding|||||
||||||||||percentage|||
||||||||rate|||||
|Changan AutomobileRussia Co., Ltd.||Mosco,Russia||Auto sales||100%||100%||Note 1||
|Changan Brazil HoldingsLimited||St Paul,Brazil||Auto sales||100%||100%||Note 2||

Note 1: Changan Automobile Russia Co., Ltd. is incorporated in Moscow, Russia; the Group holds100% of its shares and takes it into the scope of consolidation this year.
Note 2: Changan Brazil Holdings Limited is incorporated in St Paul, Brazil; the Group holds100% of its shares and takes it into the scope of consolidation this year.
(2) Subsidiaries deregistered during reporting period
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Registered||Nature of||Shareholding||Voting|||
||Company name||||||||||Note|
||||Place||business||percentage (%)||percentage (%)|||
|Jiangxi Changan R&DCenter Co., Ltd.||Jindezhen,Jiangxiprovince||Cars and partsdeveloment||100%||100%||Note||

Note: Jiangxi ChanganR&D Center Co., Ltd. deregistered in Jindezhen Municipal Administration for Industry and commerce on 28 May 2014, and is no longer included in the consolidation scope of the Group.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
VII Stake in other entities
1. Rights in subsidaries
The subsidiaries of the Company are asfollows：
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Company name||Main||Registered place||Nature of||Registere||Total proportion of|||
||||operating||||business||d capital||shareholders (%)|||
||||place||||||(0,000)||direct||indirect|
||I. The subsidiary formed by establish or investment|||||||||||||
|Hebei Changan Automobile Co., Ltd. (note1)||Dingzhou||Dingzhou||Manufacturing||46,469||94.22||-||
|Chongqing Changan InternationalAutomobile Sales Co., Ltd.||Chongqing||Chongqing||sales||1,376||95.00||-||
|Chongqing Changan Automobile Sales Co.,Ltd.||Chongqing||Chongqing||sales||4,850||100.00||-||
|Chongqing Changan Special AutomobileSales Co., Ltd (note 2)||Chongqing||Chongqing||sales||500||50.00||-||
|Chongqing Changan AutomobileSupporting Service Co., Ltd.||Chongqing||Chongqing||sales||3,000||100.00||-||
|Chongqing Changan New EnergyAutomobile Co. Ltd.||Chongqing||Chongqing||R&D||2,900||65.00||-||
|Chongqing Changan Europe DesignAcademy Co., Ltd.||Turin, Italy||Turin, Italy||R&D||EUR1,460||100.00||-||
|Changan United Kingdom R&D Center Co.,Ltd.||Nottingham,UnitedKingdom||Nottingham,United Kingdom||R&D||GBP10||100.00||-||
|Beijing Changan R&D Center Co., Ltd.||Beijing||Beijing||R&D||100||100.00||-||
|Harbin Changan R&D Center Co., Ltd.||Habin||Habin||R&D||100||100.00||-||
|Shanghai Changan R&D Center Co., Ltd.||Shanghai||Shanghai||R&D||100||100.00||-||
|Changan Japan Designing Center Co.,Ltd.||Yokohama,Japan||Yokohama,Japan||R&D||JPY2,000||100.00||-||
|Changan United States R&D Center Co., Ltd.||Troy, Unitedstates||Troy, Unitedstates||R&D||USD20||100.00||-||
|Changan Automobile Russia Co., Ltd.||Moscow,Russia||Moscow, Russia||Sales||USD20||100.00||-||
|Changan Brazil Holdings Limited||St. Paul,Brazil||St. Paul, Brazil||Sales||BRL100||100.00||-||
||II. The subsidiary formed by business combination not under common control|||||||||||||
|Nanjing Changan Automobile Co.,Ltd.(note1)||Nanjing||Nanjing||Manufacturing||60,181||84.73||-||
||III. The subsidiary formed by business combination under common control|||||||||||||
|Chongqing Changan Automobile salessubsidiaries||China||China||Sales||850||100.00||-||
|Hebei Baoding Changan Bus Co., Ltd.||Dingzhou||Dingzhou||Manufacturing||3,000||100.00||-||
|Hefei Changhe Automobile Co.,Ltd.||Hefei||Hefei||Manufacturing||77,500||100.00||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
1. Rights in subsidiaries (continued)
Note 1: the Company owns93.79% and95.70% of voting shares of Nanjing Changan Automobile Co., Ltd. And Hebei Changan Automobile Co., Ltd. respectively, the difference between proportion of voting shares and proportion of shares held is due to the voting right consigned from minority shareholders.
Note 2: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company that the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlled by the Company, so it is included in the scope of consolidated financial statements.
As at 31 December 2014, the Group has no subsidiaries with important minority interests.
2. Transctions result in change of holdingshare proportion but no effect in control of subsidiaries In December 2014, the Company acquired0.07% of the shares of Hebei Changan Automobile Co., Ltd with the consideration of RMB288, 000.00, leading the minority interests decreasing by RMB501,427.01 while capital reserve increasing by RMB213,427.01.
3. Stakes in joint ventures and associates
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Company name||Main||Registere||Nature of business||Registered||Total||||Accoun|
||||operating||d place||||capital||proportion of||||ting|
||||place||||||(0,000)||shareholders||||treatm|
||||||||||||(%)||||ent|
||||||||||||direct||inder|||
||||||||||||||ect|||
||I. Joint ventures|||||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd.||Chongqing||Chongqing||Manufacture and sale ofautomobiles, and components||USD19,000||50.00||-||Equity||
|Jiangling Holding Co., Ltd.||Nanjing||Nanjing||Manufacture and sale ofautomobiles, and components||200,000||50.00||-||Equity||
|Changan Ford Automobile Co., Ltd.||Chongqing||Chongqing||Manufacture and sale ofautomobiles, and components||USD24,100||50.00||-||Equity||
|Changan Mazda Automobile Co.,Ltd.||Nanjing||Nanjing||Manufacture and sale ofautomobiles, and components||USD11,097||50.00||-||Equity||
|Changan Ford Mazda Engine Co.,Ltd.||Nanjing||Nanjing||Manufacture and sale ofautomobiles, and components||USD20,996||50.00||-||Equity||
|Changan PSA Automobiles Co.,Ltd. (Note)||Shenzhen||Shenzhen||Manufacture and sale ofautomobiles, and components||400,000||50.00||-||Equity||
||II. Associates|||||||||||||||
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd.||Chongqing||Chongqing||Develop, manufactory, sale oflinkage rod||1,900||40.00||-||Equity||
|Chongqing Changan KuayueAutomobile Co., Ltd.||Chongqing||Chongqing||Develop, product and sale ofautomobile and components;import and export goods.||6,533||34.30||-||Equity||
|Chongqing Changan KuayueAutomobile Sales Co., Ltd.||Chongqing||Chongqing||Sale of Changan Kuayue’ sautomobile and agriculturalcars and components. Technicaladvisory services for automobile||300||34.30||-||Equity||
|Beijing Fang’an Taxi Co., Ltd.||Beijing||Beijing||Regional taxi operation||1,420||42.25||-||Equity||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Stakes in joint ventures and associates (continued)
Changan Ford Automobile Co., Ltd. is the important joint venture to the Group and makes great influence in the share of profit and loss in joint venture and associates, the Group adopts equity method to deal with the investment to it.
The table below shows the financial status of Changan Ford Automobile Co., Ltd., and all the information has been adjusted to eliminate the difference of the accounting policies.
|||||||
|-|-|-|-|-|-|
||||2014||2013|
|Current assets||18,749,082,739.00||19,514,621,414.00||
|-cash and cash equivalent||10,484,893,743.00||12,309,752,161.00||
|Non-current assets||22,704,819,379.00||17,839,181,087.00||
||Total assets|41,453,902,118.00||37,353,802,501.00||
|Current liabilities||30,399,912,981.00||26,044,348,052.00||
|Non-current liabilities||1,681,418,801.00||871,766,378.00||
||Total liabilities|32,081,331,782.00||26,916,114,430.00||
||Minority interests|37,104,391.00||25,646,231.00||
||Equity attributable to owners|9,335,465,945.00||10,412,041,840.00||
||Net asset owned according to|4,667,732,972.50||5,206,020,920.00||
||share proportion|||||
|Adjustment||(50,368,978.53)||(37,140,448.46)||
||Book value of investment|4,617,363,993.97||5,168,880,471.54||
|Operating revenue||106,353,899,023.00||84,166,039,672.00||
|Financial expenses- interestincome||168,217,185.00||151,226,201.00||
|Financial expenses- interestexpense||1,753,587.00||1,985,820.00||
|Income tax expense||2,258,780,072.00||1,453,591,406.00||
|Net profit||14,412,857,430.00||8,217,819,554.00||
|Other comprehensive income||-||-||
|Total comprehensive income||14,412,857,430.00||8,217,819,554.00||
|Dividend||7,700,000,000.00||1,600,000,000.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Stakes in joint ventures and associates (continued)
The table below shows the financial status of the less important joint ventures and associates:
|||||||
|-|-|-|-|-|-|
||||2014||2013|
||Joint venture|||||
|Total book value of the investment||7,930,846,729.93||7,114,953,128.38||
|Total amount calculated byshareholding proportion||||||
|Net profit||840,790,449.86||387,889,107.03||
|Other comprehensive income||-||-||
||Total comprehensive income|840,790,449.86||387,889,107.03||
||Associate|||||
|Total book value of the investment||75,778,876.56||73,838,914.72||
|Total amount calculated byshareholding proportion||||||
|Net profit||1,939,961.84||(4,446,821.92)||
|Other comprehensive income||-||-||
||Total comprehensive income|1,939,961.84||(4,446,821.92)||

 Since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile Sales Co., Ltd and BeijingFang’an Taxi Co., Ltd, when extra loss occurs, the Group writes down the long-term investment to zero without recognizing the contingent liability. TheGroup’s unrecognized investment loss for the current period is RMB 6,141,717.29 (2013: RMB6,899,401.41).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
VIII. Risks associated with financial instruments
1. Classification of financial instruments
The book values of different classes of financial instruments are as follows:
Financial assets
|||||||||
|-|-|-|-|-|-|-|-|
||||Loans and accounts||Available-for-sale financial|||
||2014||||||Total|
||||receivable||assets|||
|Cash||9,693,083,497.78||-||9,693,083,497.78||
|Notes receivable||17,780,161,662.94||-||17,780,161,662.94||
|Accounts receivable||758,876,190.82||-||758,876,190.82||
|Other receivables||260,457,285.50||-||260,457,285.50||
|Available-for-sale financial assets||-||544,456,774.00||544,456,774.00||
|Interest receivable||22,083,194.44||-||22,083,194.44||
||Total|28,514,661,831.48||544,456,774.00||29,059,118,605.48||

|||||||||
|-|-|-|-|-|-|-|-|
||||Loans and accounts||Available-for-sale financial|||
||2013(Restated)||||||Total|
||||receivable||assets|||
|Cash||4,535,825,972.55||-||4,535,825,972.55||
|Notes receivable||11,272,212,347.84||-||11,272,212,347.84||
|Accounts receivable||704,638,231.06||-||704,638,231.06||
|Other receivables||211,810,998.81||-||211,810,998.81||
|Available-for-sale financial assets||-||366,128,690.00||366,128,690.00||
||Total|16,724,487,550.26||366,128,690.00||17,090,616,240.26||

 Financial liabilities
|||||||
|-|-|-|-|-|-|
||||2014||2013(restated)|
|Short-term loans||90,000,000.00||1,498,000,000.00||
|Notes payable||13,108,623,397.32||9,577,654,675.13||
|Accounts payable||13,038,793,688.31||7,963,798,219.72||
|Interest payable||73,458,000.00||78,113,712.49||
|Dividend payable||79,742.80||79,742.80||
|Other payables||2,007,416,635.58||1,779,832,773.45||
|Non-current liabilities within oneyear||-||520,000,000.00||
|Long-term loans||-||1,270,000,000.00||
|Bonds payable||1,971,184,679.89||1,967,266,759.93||
||Total|30,289,556,143.90||24,654,745,883.52||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at 31 December 2014, the Group has endorsed bank acceptance bill with a carrying amount of RMB6, 619,901,191.66 (2013:RMB3, 346,586,260.31) to suppliers to settle the accounts payable. The maturities of the notes are between 1 to 12 months, according to the relevant provisions of the "law of negotiable instruments", if the banks refuse the payment, the holder has the right of recourse to the Group (the "continuing involvement"). The Group holds the view that almost all the risks and rewards concerned have been transferred; therefore, the book value of the accounts payable should be derecognized. The maximum loss and the undiscounted cash flow of the continuing involvement and repurchase is equal to its book value, the Group regards the fair value of the continuing involvement is not significant.
In 2014, the Groupdidn’t recoganize profit or loss on the transferring date. No revenue or expense should be recogazied in accordance with the continuing involvement in the current period. The indorsement occurred flatly in this period.
3. Risks of financial instruments
TheGroup’s principal financial instruments, except for derivatives, include bank loans, bonds payable, cash, etc. The main purpose of these financial instruments is to raise finance for theGroup’s operations. The Group has various other financial assets and liabilities such as accounts receivable and accounts payable, which arise directly from its operations.
The main risks arising from theGroup’s financial instruments are credit risk, liquidity risk and market risk. TheGroup’s risk management policies are summarized below:
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Credit risk
The Group trades only with recognized, creditworthy third parties. It is theGroup’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that theGroup’s exposure to bad debts is not significant. For transactions that do not occur in the country of the relevant operating unit, the Group does not offer credit terms without the approval of the special department of credit control.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, available-for-sale financial assets, other receivables, dividend receivables and certain derivatives financial instruments, theGroup’s exposure to credit risk arising from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments, listed as book value of financial assets in consolidated financial statements. In 2014, there was no credit risk arising from financial guarantee.
No gage is required since the Group trades only with recognized, creditworthy third parties. Credit risks are managed by clients and industries collectively. As at 31 December 2014, among theGroup’s collections with specific credit risk,23.07% (2013:69.83%) of accounts receivables of the Group are due from top five clients respectively.
As at the end of the year, the maturity analysis for theGroup’s financial assets not impaired is as follows: 2014
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Overdue but not impaired|||||
|||||Neither overdue nor|||||||
|||Total||||||3 months to 1|||
|||||impaired||Within 3 months||||Over 1 year|
|||||||||year|||
|Accountsreceivable|758,876,190.82||569,744,782.83||174,781,709.01||5,807,000.62||8,542,698.36||
|Otherreceivables|260,457,285.50||257,135,071.77||351,884.54||1,689,117.99||1,281,211.20||
|Notesreceivable|17,780,161,662.94||17,780,161,662.94||-||-||-||
|Available forsale fianciailassets|544,456,774.00||544,456,774.00||-||-||-||
|Interestreceivables|22,083,194.44||22,083,194.44||-||-||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
2013 (Restated)
|||||||||
|-|-|-|-|-|-|-|-|
||||Neither overdue nor||Overdue but not impaired|||
||Total||impaired||Within 3 months|||
|Accountsreceivable|704,638,231.06|659,702,558.30||4,017,119.08||26,531,575.90|14,386,977.78|
|Otherreceivables|211,810,998.81|202,927,789.22||3,884,261.41||1,562,823.58|3,436,124.60|
|Notesreceivable|11,272,212,347.84|11,272,212,347.84||-||-|-|
|Available-for -salefianciailassets|366,128,690.00|366,128,690.00||-||-|-|

As at 31 December 2014 and 2013, the balance of accounts receivable which is neither overdue nor impaired is mainly due to the customers who have no default records recently.
As at 31 December 2014 and 2013, overdue but not impaired accounts receivable are related to independent clients having satisfactory transaction records with the Group. The amount of overdue but not impaired means the net value which equals to the book value minuses bad debt allowance. Based on previous experience, since credit quality has no significant changes and the receivables can be fully recovered, the Group considers no impairment provision should be made to them. The Group does not hold any gage from or enhance credit limit to these clients.
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration the maturity date of financial instruments plus estimated cash flow from theGroup’s operations.
TheGroup’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operating capital through financing functions by the use of bank loans, debentures, etc.
The table below summarizes the maturity profile of theGroup’s financial assets and financial liabilities based on the non-discounted cash flow of the contracts:
2014
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Within 1 month||1 to 3 months||3 months to 1 year||1 to 5 years|Total|
|Short-term loans||204,166.67||61,107,583.33||30,568,424.66||-||91,880,174.66|
|Notes payable||1,981,150,746.34||4,385,247,342.23||6,742,225,308.75||-||13,108,623,397.32|
|Accounts payable||3,418,101,787.40||5,685,060,691.30||3,935,631,209.61||-||13,038,793,688.31|
|Interest payable||-||-||73,458,000.00||-||73,458,000.00|
|Divedend payable||79,742.80||-||-||-||79,742.80|
|Other payable||614,829,987.19||345,820,695.75||1,046,765,952.64||-||2,007,416,635.58|
|Bonds payable||-||-||31,482,000.00||2,189,880,000.00||2,221,362,000.00|
||Total|6,014,366,430.40||10,477,236,312.61||11,860,130,895.66||2,189,880,000.00||30,541,613,638.67|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
2013(restated)
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Within 1 month||1 to 3 months||3 months to 1 year||1 to 5 years||Total|
|Short-term loans||-||47,072,771.93||1,489,672,413.68||-||1,536,745,185.61||
|Notes payable||1,934,974,194.70||3,298,501,815.93||4,344,178,664.50||-||9,577,654,675.13||
|Accounts payable||2,689,332,345.03||3,557,839,033.76||1,716,626,840.93||-||7,963,798,219.72||
|Interest payable||315,123.30||4,340,589.19||73,458,000.00||-||78,113,712.49||
|Dividend payable||79,742.80||-||-||-||79,742.80||
|Other payable||604,974,213.76||510,531,612.97||664,326,946.72||-||1,779,832,773.45||
|Non-current liabilitieswithin one year||-||5,799,886.06||534,641,082.19||-||540,440,968.25||
|Long-term loans||-||13,932,163.78||51,062,979.45||1,322,860,439.74||1,387,855,582.97||
|Bonds payable||-||-||31,482,000.00||2,294,820,000.00||2,326,302,000.00||
||Total|5,229,675,619.59||7,438,017,873.62||8,905,448,927.47||3,617,680,439.74||25,190,822,860.42||

 Market risk
Interest rate risk
TheGroup’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 31 December 2014, theGroup’s loans are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
TheGroup’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are settled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 2014, the Group only has transactional currency exposures of1.74% (2013:1.37%) of its total revenue that is valued in currencies other than the units' functional currency. Since most of theGroup’s businesses are opertated in China mainland, the estimated influence of fluctuation of foreign currency is insignificant; therefore, the Grouphasn’t carried out large amount of hedging to reduce the risk.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Equity instruments investment price risk
The Group is exposed to equity price risk arising from individual equity investments classified as available-for-sale investments (Note V 9) as at 31 December 2014. TheGroup’s listed investments are listed on the Shanghai stock exchanges and valued at quoted market prices at the end of the reporting period. The following table demonstrates the sensitivity to every5% change ( based on the carrying amount as at the end of reporting period) in theGroup’s net profit and fair value of the equity investments, with all other variables held constant, based on their carrying amounts at the end of the reporting period.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Increase/|||
||||Carrying amount of equity||||||Increase/(decrease) in|
||||||Change in fair value||(decrease) in net|||
||||investments||||||equity|
||||||||profit|||
||2014|||||||||
|Shanghai- Available for sale||395,647,500.00||5%||-||19,782,375.00||
|Shanghai- Available for sale||395,647,500.00||(5%)||-||(19,782,375.00)||
||2013|||||||||
|Shanghai- Available for sale||257,319,416.00||5%||-||12,865,970.80||
|Shanghai- Available-for-sale||257,319,416.00||(5%)||-||(12,865,970.80)||

 4. Capital management
The main goal of theGroup’s capital management is to ensure that the ability of continuous operation, and maintain a healthy capital ratios in order to support business development, and to maximize shareholder value. The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. To maintain or adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares. The Group is not subject to external mandatory capital
requirements constraints. The goal, principle and procedure of capital management stay the same in 2014 and 2013.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
4. Capital management (ontinued)
The Group adopts leverage ratio to manage capital. The leverage ratio is net liability divided by net liability and adjusted capital. The Group plans to maintain the ratio between50% and60%. Net liability consists of
short-term loan, notes payable, accounts payable, interest payable, dividend payable, other payables,
non-current liabilities within one year, long-term loans and bonds payable; capital consists of all the equity items.
TheGroup’s leverage ratio on the balance sheet date is as follows:
31 December 2014 31 December 2014 (Restated) Leverage ratio 63.47% 65.72%
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
IX. Disclosure of fair value
(1) Assets and liabilities measured at fair value
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Input measured at fair value|||||||
|||Quoted price in||Important and||Important but|||
|||active market||observable input||unobservable input||Total|
|||(The first level)||(The second level）||(The second level)|||
|Available-for-salefinancial assets- equtiyinstruments|395,647,500.00||-||-||395,647,500.00||

2013
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Input measured at fair value|||||||
|||Quoted price in||Important and||Important but|||
|||active market||observable input||unobservable input||Total|
|||(The first level)||(The second level)||(The second level)|||
|Available-for-salefinancial assets- equtiyinstruments|257,319,416.00||-||-||257,319,416.00||

(2) Assets and liabilities disclosed at fair value
2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Input measured at fair value|||||||
|||Quoted market price in||Important and||Important but|||
|||active market||observable input||unobservable input||Total|
|||(The first level)||(The second level）||(The second level)|||
|Bonds payable|2,003,562,000.00||-||-||2,003,562,000.00||

 2013
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Input measured at fair value|||||||
|||Quoted market price in||Quoted price in||Quoted price in active||Quoted price in active|
|||active market||active market||market||market|
|||(The first level)||(The first level)||(The first level)||(The first level)|
|Bonds payable|1,922,580,000.00||-||-||1,922,580,000.00||
|Long-term loans|-||-||1,287,942,211.79||1,287,942,211.79||

 For the year ended 2014, there is neither transference of financial assets and liabilities between first and second level, nor transference to or from third level.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
IX. Disclosure of fair value (continued)
Fair value of financial instruments
Following are book value and fair value of financial instruments of the group except for equity instruments whose fair value is similar with book value and those neither have quoted market price in active market nor be reliably measured.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Book value||||Fair value|||
|||2014||2013||2014||2013|
|Finacial assets|||||||||
|Financial assetsavailable for sale-equtiy instruments|395,647,500.00||257,319,416.00||395,647,500.00||257,319,416.00||
|Finacial liabilities|||||||||
|Bonds payable|1,971,184,679.89||1,967,266,759.93||2,003,562,000.00||1,922,580,000.00||
|Long-term loans|-||1,270,000,000.00||-||1,287,942,211.79||

 Management has assessed and concluded that, accounts, including cash, notes receivable, accounts receivable, other receivables, short-term loans, intrest payable, dividend payables, other payables, notes payable, accounts payable and so on, whose fair value equals to book value because of its short term to overdue.
Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability could be incurred or settled by knowledged, willing parties in a currentarm’s-length transaction, other than liquidation or unwilling sales. Methods and hypothesis followed are used for determining fair value. Bonds payable are carried at armotized cost and thoses fair value are determined by the settlement price on 31 December 2014 and 2013, which are traded in open and active market.
Long-term loans are carried at armotized cost. On 31 December 2013, fair value of long-term loans is
determined at the discount rate of6.15%. The discount rate is the prevailing rate of financial instruments whose nature, credit risk and repayment period are similar to theGroup’s.
The important but unobservable input measured by long-term loans equals to rate of payment in advance and default.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
X. Related party relationships and transactions
1. Parent company
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Proportion of|
||||||||||Proportion of|||
||||Place of||||||||voting rights|
||Parent||||Registered capital||Nature of the business||shares in the|||
||||registration||||||||in the|
||||||||||Company|||
||||||||||||company|
|China Changan AutomobileGroup Co ,Ltd.||Beijing||4,582,373,700.00||Manufacture and saleof automobiles, engine,and components||39.11%||39.11%||

The ultimate holding company is China Changan Automobile Group Co ,Ltd..
The registered capital and paid-up capital was unchanged in 2014.
2. Subsidiaries
Refer to Note VII 1 for details of theGroup’s subsidiaries.
3. Joint ventures and associates
Refer to Note VII 3 for details of theGroup’s joint ventures and associates.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
4. Other related parties
|||||
|-|-|-|-|
||Related parties||Relationship|
|China South Industries Group Corporation||Ultimate holding company||
|China Changan Automobile Co., Ltd. – Chengdu Jian'an Automobile Bridge Branch||Branch of parent||
|China Changan Automobile Co., Ltd. – Shichuan Jian'an Automobile Bridge Branch(hereafter referred to as “CSIA - Jian'an Automobile Bridge Branch”)||Branch of parent||
|China Changan Automobile Co., Ltd. – Chongqing Tsingshan Transmission Branch(hereafter referred to as “CSIA-Chongqing Tsingshan Transmission Branch”)||Branch of parent||
|Chengdu Huachuan Electric Equipment Co., Ltd.||Controlled by the same parent company||
|Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd.||Controlled by the same parent company||
|Harbin Dongan Auto Engine Co., Ltd.||Controlled by the same parent company||
|Harbin Dongan Automotive Engine Manufacturing Co., Ltd.||Controlled by the same parent company||
|Hafei Motor Co., Ltd.||Controlled by the same parent company||
|South Tianhe Chassis System Co., Ltd.||Controlled by the same parent company||
|South Inter Air-conditioner Co, .Ltd.||Controlled by the same parent company||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd.||Controlled by the same parent company||
|Longchang Shanchuan Shock-absorbing Vehicles Parts Co., Ltd.||Controlled by the same parent company||
|Wanyou Automobile Investment Co., Ltd.||Controlled by the same parent company||
|China Changan Automobile Group Ningbo Dongxiang Sales Co., Ltd.||Controlled by the same parent company||
|China Changan Automobile Group Tianjin Sales Co., Ltd.||Controlled by the same parent company||
|United Prosperity Investment Co., Ltd.||Controlled by the same parent company||
|Chongqing Anfu Automobile Co., Ltd.||Controlled by the same parent company||
|Chongqing Automobile Air-conditioner Co., Ltd.||Controlled by the same parent company||
|Chongqing Changfeng Jiquan Machinery Co., Ltd.||Controlled by the same parent company||
|South Industry Assets Management Co.' Ltd.||Controlled by the same ultimate holding company||
|Beijing Beiji Mechanical and Electrical Industry Co., Ltd.||Controlled by the same ultimate holding company||
|China South Industry Group Finance Co., Ltd.||Controlled by the same ultimate holding company||
|CDGM Tanaka Environmental Catalyst Co., Ltd.||Controlled by the same ultimate holding company||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
|||||
|-|-|-|-|
||Related parties||Relationship|
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd.||Controlled by the same ultimate holding company||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd.||Controlled by the same ultimate holding company||
|Chengdu Lingchuan Special Industry Co., Ltd.||Controlled by the same ultimate holding company||
|Chengdu Ningxing Automobile Spring Co., Ltd.||Controlled by the same ultimate holding company||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||Controlled by the same ultimate holding company||
|Chengdu Wanyou Filter Co., Ltd.||Controlled by the same ultimate holding company||
|Chengdu Wanyou Trading Co., Ltd.||Controlled by the same ultimate holding company||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd.||Controlled by the same ultimate holding company||
|Nanning Wanyou Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Sichuan Hongguang Machinery and Electrics Co., Ltd.||Controlled by the same ultimate holding company||
|Suining Wanyou Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Southwest Ordnance Industry Corporation||Controlled by the same ultimate holding company||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Yunnan Xiyi Industries Co., Ltd.||Controlled by the same ultimate holding company||
|Yunnan Xiangyu Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Dajiang Jiexing Forging Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Dajiang Yuqiang Plastic Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Jialing Yimin Special Equipment Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Jianshe Automobile Air-conditioner Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Shangfang Automobile Fittings Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Qingshan Transmission Sales Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Changan Property Management Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Wanbing Supplies Ltd.||Controlled by the same ultimate holding company||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
|||||
|-|-|-|-|
||Related parties||Relationship|
|Chongqing Wanyou Construction Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Wanyou Economic Development Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Wanyou Auto Sales and Service Corporation||Controlled by the same ultimate holding company||
|Chongqing Yihong Engineering Plastic Products Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Changan Real Estate Development Co., Ltd.||Controlled by the same ultimate holding company||
|Changan Industries Group Co. Ltd.||Controlled by the same ultimate holding company||
|Chongqing Changan Construction Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Changan Visteon Engine Control Systems Co., Ltd.||Controlled by the same ultimate holding company||
|Chongqing Changrong Machinery Co., Ltd.||Controlled by the same ultimate holding company||
|Jiangxi Changhe Automobile Co., Ltd.||Historical related party||
|China Changan Automobile Group Chongqing Guangda Sales Co., Ltd.||Historical related party||

 5. Major transactions between the Group and its related parties
(1) Transactions of goods and services
Purchases of goods and services from related parties
|||||||||
|-|-|-|-|-|-|-|-|
||Related parties||Nature of the transaction||2014||2013(Restated)|
|CSIA-Chongqing Tsingshan Transmission Branch”)||Purchase of spare parts||1,772,109,900.52||1,295,873,099.36||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||Purchase of spare parts/ Transportation fee||1,162,228,880.20||1,122,409,568.27||
|CSIA - Jian'an Automobile Bridge Branch”)||Purchase of spare parts||867,010,405.30||666,512,447.25||
|Harbin Dongan Automotive Engine Manufacturing Co., Ltd.||Purchase of spare parts||853,493,934.92||494,939,184.60||
|South Tianhe Chassis System Co., Ltd.||Purchase of spare parts||652,486,555.11||421,203,298.96||
|Chengdu Huachuan Electric Equipment Co., Ltd.||Purchase of spare parts||322,618,843.01||220,545,512.32||
|Changan Industries Group Co. Ltd.||Purchase of spare parts and accept service||250,721,264.15||34,219,835.04||
|South Inter Air-conditioner Co, .Ltd.||Purchase of spare parts||234,914,830.47||99,003,948.19||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
||Related parties||Nature of the transaction||2014||2013(Restated)|
|Hafei Motor Co., Ltd.||Purchase of spare parts and accept service||182,145,346.76||243,102,302.79||
|Chongqing Jianshe Automobile Air-conditioner Co., Ltd.||Purchase of spare parts||172,323,081.17||123,763,784.52||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd.||Purchase of spare parts||133,893,925.14||110,242,759.07||
|Harbin Dongan Auto Engine Co., Ltd.||Purchase of spare parts||123,859,663.79||90,011,433.14||
|Longchang Shanchuan Shock-absorbing Vehicles Parts Co., Ltd.||Purchase of spare parts||117,396,987.71||94,876,210.19||
|Chongqing Shangfang Automobile Fittings Co., Ltd.||Purchase of spare parts||104,710,813.33||101,945,038.87||
|Changan Ford Automobile Co., Ltd.||Purchase of spare parts||99,613,995.85||110,080,523.38||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd.||Purchase of spare parts||96,965,314.57||84,922,504.44||
|Chongqing Changrong Machinery Co., Ltd.||Purchase of spare parts||88,458,014.41||109,594,507.93||
|Chengdu Wanyou Filter Co., Ltd.||Purchase of spare parts||84,924,068.98||63,524,086.01||
|Chengdu Lingchuan Special Industry Co., Ltd.||Purchase of spare parts||84,097,032.26||81,130,188.54||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd.||Purchase of spare parts||77,766,730.35||80,696,956.74||
|Chongqing Wanyou Economic Development Co., Ltd.||Purchase of spare parts||73,787,651.08||70,274,425.03||
|Yunnan Xiyi Industries Co., Ltd.||Purchase of spare parts||69,458,376.03||47,175,847.18||
|Sichuan Hongguang Machinery and Electrics Co., Ltd.||Purchase of spare parts||68,902,942.32||71,461,920.47||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd.||Purchase of spare parts||51,489,451.69||36,492,354.22||
|Chongqing Changfeng Jiquan Machinery Co., Ltd.||Purchase of spare parts||35,015,934.14||20,755,652.85||
|Chongqing Xiyi Automobile Linkage Rod Co., Ltd.||Purchase of spare parts||31,473,447.99||34,890,787.40||
|Chongqing Yihong Engineering Plastic Products Co., Ltd.||Purchase of spare parts||29,834,181.59||11,582,240.67||
|Chengdu Ningxing Automobile Spring Co., Ltd.||Purchase of spare parts||12,311,991.13||8,742,284.42||
|China Changan Automobile Co., Ltd. – Chengdu Jian'an AutomobileBridge Branch||Purchase of spare parts||10,445,764.76||31,861,014.37||
|United Prosperity Investment Co., Ltd.(Note 1)||Accept service||7,379,317.05||762,048.00||
|Chongqing Qingshan Transmission Sales Co., Ltd.||Purchase of spare parts||7,188,412.53||5,926,883.55||
|Chongqing Changan Property Management Co., Ltd.||Accept service||5,972,802.68||2,936,383.54||
|Chongqing Dajiang Jiexin||Purchase of spare parts||5,094,192.00||-||
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd.||Purchase of spare parts||3,730,906.96||777,349.40||
|CDGM Tanaka Environmental Catalyst Co., Ltd.||Purchase of spare parts||3,688,701.55||-||
|Chongqing Changan Visteon Engine Control Systems Co., Ltd.||Purchase of spare parts||3,484,502.40||18,043,745.48||
|Chongqing Changan Suzuki Automobile Co., Ltd.||Purchase of spare parts||1,237,784.75||684,000.00||
|Chongqing Jialing Yimin Special Equipment Co., Ltd.||Purchase of spare parts||1,021,473.02||-||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||Purchase of spare parts||250,461.93||-||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||Purchase of spare parts||225,194.03||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
||Related parties||Nature of the transaction||2014||2013(Restated)|
|Chongqing Dajiang Yuqiang Plastic Co., Ltd.||Purchase of spare parts||139,246.50||116,385.29||
|Beijing Beiji Mechanical and Electrical Industry Co., Ltd.||Purchase of spare parts||108,726.84||273,189.39||
|Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd.||Purchase of spare parts||32,815.08||164,456.86||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||Purchase of spare parts||24,727.51||-||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||Purchase of spare parts||21,844.49||-||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||Purchase of spare parts||10,589.08||-||
|Nanning Wanyou Auto Sales and Service Co., Ltd.||Purchase of spare parts||6,664.63||-||
|Chengdu Wanyou Trading Co., Ltd.||Purchase of spare parts||568.89||-||
|Changan Mazda Automobile Co., Ltd.||Purchase of spare parts||-||814,666.67||
||Total|||7,904,078,260.65||6,012,332,824.40||

 The price of theGroup’s purchase from related parties is based on contracts agreed by both parties.
Note1: For year ended2014, United Prosperity Investment Co., Ltd. provides financial service for theCompany’s import of machinery. Current year, the Company payed RMB 145,020,650.96 for purchase of machinery overseas on behalf of United Prosperity Investment Co., Ltd. (2013: RMB. 71,724,768.58). Therefore , the Company payed it RMB 6,716,878.20 for its financial service (2013: 762,048.00).
Besides, for the year ended 2014, United Prosperity Investment Co., Ltd also provides sales agency service for the Group, and sales amount to RMB 62,379,572.86 ( 2013: Nil), therefore the Group paid it RMB662,438.85.
Sales of goods and services to related parties
|||||||||
|-|-|-|-|-|-|-|-|
||Related parties||Nature of the transaction||2014||2013(Restated)|
|Chongqing Wanyou Economic Development Co., Ltd.||Sales of cars and spare parts||1,720,361,095.98||1,183,316,184.16||
|Wanyou Automobile Investment Co., Ltd.||Sales of cars and spare parts||1,033,758,478.34||514,525,042.46||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||Sales of cars||950,587,751.13||609,211,116.96||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||Sales of cars and spare parts||944,185,877.17||787,473,701.16||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||Sales of cars and spare parts||858,837,220.43||754,115,231.30||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||Sales of cars and spare parts||768,930,221.51||678,089,089.90||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||Sales of cars and spare parts||189,860,380.43||133,437,661.45||
|Changan Ford Automobile Co., Ltd.||Providing outsourcing processing and service||144,031,886.74||170,084,840.02||
|Nanning Wanyou Auto Sales and Service Co., Ltd.||Sales of cars||125,685,008.27||61,605,394.95||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
||Related parties||Nature of the transaction||2014||2013(Restated)|
|China Changan Automobile Group Tianjin Sales Co., Ltd.||Sales of cars||93,456,852.77||77,244,057.14||
|Chengdu Lingchuan Special Industry Co., Ltd.||Sale of spare parts||63,228,179.47||35,525,974.37||
|Yunnan Xiangyu Auto Sales and Service Co., Ltd.||Sales of cars||61,268,914.35||-||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd.||Sale of spare parts||47,870,826.73||61,159,960.80||
|Sichuan Hongguang Machinery and Electrics Co., Ltd.||Sale of spare parts||36,023,795.72||45,514,079.66||
|Harbin Dongan Automotive Engine Manufacturing Co., Ltd.||Sale of spare parts and providing service||35,505,936.25||28,953,587.77||
|China South Industry Group Finance Co., Ltd.||Providing service||13,776,308.00||8,403,033.00||
|Changan PSA Automobiles Co., Ltd.||Sale of spare parts||12,754,584.34||-||
|Chongqing Shangfang Automobile Fittings Co., Ltd.||Sale of spare parts||10,874,495.13||10,909,651.41||
|Chongqing Anfu Automobile Co., Ltd.||Sales of cars||5,451,299.15||6,664,606.85||
|Yunnan Xiyi Industries Co., Ltd.||Sale of spare parts||2,891,746.17||1,815,400.00||
|Changan Industries Group Co. Ltd.||Sale of spare parts and providing service||757,451.01||633,182.02||
|Chongqing Changan Suzuki Automobile Co., Ltd.||Sale of spare parts||459,288.44||4,708,877.27||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||Sale of spare parts and providing service||273,547.11||282,974.34||
|Chongqing Changan Kuayue Automobile Co., Ltd.||Sale of spare parts||14,018.37||1,781,538.46||
|Chengdu Wanyou Trading Co., Ltd.||Sale of spare parts||8,281.19||-||
|Chongqing Changrong Machinery Co., Ltd.||Warehousing||6,037.75||-||
|Hafei Motor Co., Ltd.||Sale of spare parts||2,957.76||-||
|Chongqing Changan Real Estate Development Co., Ltd.||Warehousing||1,886.79||-||
|Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd.||Sale of spare parts||1,797.40||-||
|Jiangling Holding Co., Ltd.||Sale of spare parts||497.09||1,561,537.31||
|Changan Ford Mazda Engine Co., Ltd.||Sale of spare parts||-||341,880.34||
|Chongqing Jianshe Automobile Air-conditioner Co., Ltd.||Providing service||-||62,815.10||
|Southwest Ordnance Industry Corporation||Sales of cars||-||425,659,660.31||
|Jiangxi Changhe Automobile Co., Ltd.||providing system maintenance and service||-||9,757,440.57||
|CSIA - Jian'an Automobile Bridge Branch”)||Providing service||-||700,000.00||
||Total|||7,120,866,620.99||5,613,538,519.08||

 The price of theGroup’s sales to related parties is based on contracts agreed by all parties.
Other major related-party transactions
The price of theGroup’s other major related-party transactions is based on contracts agreed by all parties.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
Expenses of integrated service charges
|||||||||
|-|-|-|-|-|-|-|-|
||Related parties||Nature of the transaction||2014||2013|
|Changan Industries Group Co. Ltd.||Payment of land rental fees||28,705,101.00||23,712,951.00||
|Changan Industries Group Co. Ltd.||Payment of building rental fees||33,255,483.00||36,342,652.70||
|Changan Industries Group Co. Ltd.||Payment of utilities||146,380,856.93||135,487,132.14||
|Changan Industries Group Co. Ltd.||Payment of firefighting fees||2,740,000.00||2,740,000.00||
|Changan Industries Group Co. Ltd.||Others||17,733,060.01||14,686,277.48||
|Hafei Motor Co., Ltd.||Intergrated service||2,898,812.92||-||
||Total|||231,713,313.86||212,969,013.32||

 Purchase of project materials
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013|
|Chongqing Changan Construction Co., Ltd.||98,291,857.00||88,476,083.75||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||2,278,127.25||26,876,099.26||
|Changan Industries Group Co. Ltd.||3,763,647.24||1,145,433.72||
||Total|104,333,631.49||116,497,616.73||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
Staff expenses for technical supporting
||||||
|-|-|-|-|-|
||Related parties|2014||2013|
|Changan Ford Automobile Co., Ltd.||45,861,502.13|39,831,638.20||
|Changan Mazda Automobile Co., Ltd.||24,454,919.90|23,978,538.68||
|Changan Ford Mazda Engine Co., Ltd.||18,819,603.94|16,850,588.80||
|Changan PSA Automobiles Co., Ltd.||9,250,000.00|-||
|Chongqing Changan Suzuki Automobile Co., Ltd.||6,845,142.00|4,301,808.00||
|Jiangling Holding Co., Ltd.||1,515,928.06|1,279,403.20||
|Chongqing Changan Kuayue Automobile Co., Ltd.||820,000.00|-||
|Hafei Motor Co., Ltd.||275,035.11|259,600.00||
|Harbin Dongan Auto Engine Co., Ltd.||-|93,928.00||
||Total|107,842,131.14|86,595,504.88||

 Trademark license income
||||||
|-|-|-|-|-|
||Related parties|2014||2013|
|Chongqing Changan Kuayue Automobile Co., Ltd.||-|2,907,420.00||

 Technical service income
||||||
|-|-|-|-|-|
||Related parties|2014||2013|
|Changan PSA Automobiles Co., Ltd.||829,246.63|-||
|Chongqing Changan Suzuki Automobile Co., Ltd.||991,656.23|5,500,000.00||
||Total|1,820,902.86|5,500,000.00||

 Capital occupied income
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013|
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||1,841,788.88||-||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||1,240,136.75||3,896,167.53||
|China Changan Automobile Group Tianjin Sales Co., Ltd.||347,389.75||-||
|Chongqing Wanyou Economic Development Co., Ltd.||145,747.02||521,365.79||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||13,302.56||56,455.56||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||5,208.54||-||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||-||151,794.87||
|Wanyou Automobile Investment Co., Ltd.||-||935,000.85||
|Southwest Ordnance Industry Corporation||-||1,963,623.08||
||Total|3,593,573.50||7,524,407.68||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties
(2) Lease between related parties
Rent assets to related parties
|||||||||
|-|-|-|-|-|-|-|-|
||||Type of leased||Rental income||Rental income for 2013|
||Leasee|||||||
||||assets||for 2014|||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||Office building||143,080.00||-||

 Rent assets from related parties
||||||||
|-|-|-|-|-|-|-|
||Lessors|||Rental expense for||Rental expense|
|||Type of leased assets|||||
|||||2014||for 2013|
|Chongqing Changan Min Sheng Logistics Co., Ltd.||Storage|3,482,865.00||5,934,453.12||
|Hafei Motor Co., Ltd.||Land|2,464,000.00||1,568,920.00||
|Chongqing Changan Real Estate Development Co., Ltd.||Office building and storage|2,806,108.00||3,441,998.00||

 (3) Transfer of assets between related parties
||||||||
|-|-|-|-|-|-|-|
||Related party|Type of transaction||2014||2013|
|China Changan Automobile Group Co.,Ltd. (Note)||Transfer of equity|439,980,000.00||1,304,408,890.00||

 Note1: In April 2014, the Group paid the equity investment transfer price with the amount of RMB439,980,000.00 to its parent company China Changan for purchase of100% equity of Hefei Changan Automobile Co., Ltd.. Refer to NoteⅥ for further details.
(4) Guarantee of related party
In 2014, China Changan, the parent company, provided an unconditionally and irrevocably joint
guarantee for the corporate bonds with face value of RMB1,980,000,000.00. Refer to Note V 37.
(5) Other related party transaction
||||||
|-|-|-|-|-|
||Item|2014||2013(Restated)|
|Compensation of key management personal||13,793,354.00|12,654,134.88||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties
Notes receivable
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013(Restated)|
|Wanyou Automobile Investment Co., Ltd.||1,933,900,000.00||627,000,000.00||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||519,000,000.00||401,000,000.00||
|Chongqing Wanyou Economic Development Co., Ltd.||153,700,000.00||366,730,000.00||
|Nanning Wanyou Auto Sales and Service Co., Ltd.||60,600,000.00||27,950,000.00||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||57,200,000.00||31,400,000.00||
|China Changan Automobile Group Tianjin Sales Co., Ltd.||55,000,000.00||36,000,000.00||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||22,000,000.00||21,000,000.00||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||7,500,000.00||114,950,000.00||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||4,000,000.00||-||
|Changan Industries Group Co. Ltd.||2,402,062.50||-||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||-||127,500,000.00||
||Total|2,815,302,062.50||1,753,530,000.00||

 Accounts receivable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Related parties||2014||||2013(Restated)|||
||||Amount||Provision||Amount||Provision|
|Changan Ford Automobile Co., Ltd.||38,840,411.42||-||67,203,793.50||-||
|Harbin Dongan Automotive EngineManufacturing Co., Ltd.||34,732,286.33||-||28,083,882.87||-||
|Changan PSA Automobiles Co., Ltd.||13,541,028.82||-||-||-||
|United Prosperity Investment Co., Ltd.||10,856,165.22||-||-||-||
|Changan Mazda Automobile Co., Ltd.||10,426,339.17||-||22,058,248.72||-||
|Chongqing Changan Suzuki Automobile Co.,Ltd.||7,301,911.32||-||3,401,258.46||-||
|Jiangling Holding Co., Ltd.||6,525,274.41||-||6,187,757.28||-||
|Changan Ford Mazda Engine Co., Ltd.||5,923,814.08||-||13,994,402.88||-||
|Chongqing Changan Kuayue Automobile Co.,Ltd.||5,758,272.00||-||7,997,692.00||-||
|Changan Industries Group Co. Ltd.||1,825,968.36||-||-||-||
|Chengdu Wanyou Economic TechnologicalDevelopment Co., Ltd.||1,043.72||-||1,043.72||-||
|Jiangxi Changhe Automobile Co., Ltd.||-||-||10,322,428.89||-||
|Chongqing Anfu Automobile Co., Ltd.||-||-||3,908,410.00||-||
|China South Industry Group Finance Co., Ltd.||-||-||1,985,948.00||-||
|Hafei Motor Co., Ltd.||-||-||259,600.00||-||
|Guizhou Wanyou Auto Sales and Service Co.,Ltd.||-||-||372.52||-||
|Chongqing Wanyou Economic DevelopmentCo., Ltd.||-||-||272.57||-||
|China Changan Automobile Group Co ,Ltd.||-||-||307,806,400.00||-||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||-||-||895.31||-||
||Total|135,732,514.85||-||473,212,406.72||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Prepayments
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013(Restated)|
|Chongqing Changan Suzuki Automobile Co., Ltd.||280,209.25||-||
|Chongqing Qingshan Transmission Sales Co., Ltd.||17,532.12||-||
|United Prosperity Investment Co., Ltd.||-||2,096,569.86||
|Hafei Motor Co., Ltd.||-||696,224.48||
||Total|297,741.37||2,792,794.34||

 Other recievables
|||||||
|-|-|-|-|-|-|
||Related party||2014||2013(Restated)|
|Chongqing Changan Min Sheng Logistics Co., Ltd.||181,042.41||-||

 Notes payable
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013(Restated)|
|Hafei Motor Co., Ltd.||464,660,000.00||525,110,000.00||
|Harbin Dongan Automotive Engine Manufacturing Co., Ltd.||247,700,000.00||91,690,000.00||
|South Tianhe Chassis System Co., Ltd.||197,690,000.00||209,093,904.12||
|Chongqing Jianshe Automobile Air-conditioner Co., Ltd.||87,910,000.00||20,460,000.00||
|Chengdu Huachuan Electric Equipment Co., Ltd.||85,650,000.00||25,097,237.03||
|South Inter Air-conditioner Co, .Ltd.||66,670,000.00||49,698,932.30||
|Harbin Dongan Auto Engine Co., Ltd.||51,700,000.00||51,010,000.00||
|Yunnan Xiyi Industries Co., Ltd.||50,760,000.00||25,290,000.00||
|Chengdu Wanyou Filter Co., Ltd.||47,110,000.00||28,563,390.83||
|Chongqing Changan Construction Co., Ltd.||44,749,050.70||24,874,994.00||
|Chongqing Shangfang Automobile Fittings Co., Ltd.||30,440,000.00||31,214,565.98||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd.||26,860,000.00||28,348,693.18||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd.||26,520,000.00||6,400,584.67||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd.||26,520,000.00||27,709,821.95||
|Longchang Shanchuan Shock-absorbing Vehicles Parts Co., Ltd.||20,210,000.00||20,800,518.35||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd.||19,020,000.00||20,791,080.11||
|Sichuan Hongguang Machinery and Electrics Co., Ltd.||16,660,000.00||16,520,000.00||
|Chongqing Changrong Machinery Co., Ltd.||14,680,000.00||21,392,316.02||
|Chongqing Yihong Engineering Plastic Products Co., Ltd.||9,190,000.00||7,882,093.12||
|Chongqing Xiyi Automobile Linkage Rod Co., Ltd.||7,490,000.00||7,130,000.00||
|Chengdu Ningxing Automobile Spring Co., Ltd.||4,430,000.00||3,360,588.86||
|Chengdu Lingchuan Special Industry Co., Ltd.||3,860,000.00||25,218,082.88||
|Chongqing Wanyou Construction Co., Ltd.||3,286,323.00||12,190,614.00||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||2,163,387.00||29,138,317.66||
|Changan Industries Group Co. Ltd.||1,684,437.30||262,629.65||
|Chongqing Changan Property Management Co., Ltd.||1,280,000.00||1,098,960.00||
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd.||1,110,000.00||430,000.00||
|Chengdu Guangming Tianzhong Environmental Protection TechnologyCo., Ltd.||860,000.00||-||
|China Changan Automobile Co., Ltd. – Chengdu Jian'an AutomobileBridge Branch||580,000.00||25,648,950.85||
|CSIA - Jian'an Automobile Bridge Branch||-||97,681,407.62||
|CSIA-Chongqing Tsingshan Transmission Branch||-||42,144,317.79||
|Chongqing Changfeng Jiquan Machinery Co., Ltd.||-||1,410,481.31||
||Total|1,561,443,198.00||1,477,662,482.28||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Accounts payable
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013(Restated)|
|Hafei Motor Co., Ltd.||231,401,070.28||211,566,557.98||
|Harbin Dongan Automotive Engine Manufacturing Co., Ltd.||219,176,454.82||37,202,140.47||
|South Tianhe Chassis System Co., Ltd.||124,362,361.53||102,070,092.74||
|CSIA-Chongqing Tsingshan Transmission Branch||119,749,504.60||81,061,026.50||
|CSIA - Jian'an Automobile Bridge Branch||119,241,308.69||87,494,213.75||
|South Inter Air-conditioner Co, .Ltd.||85,699,120.04||25,512,682.93||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||63,190,489.33||58,165,316.80||
|Harbin Dongan Auto Engine Co., Ltd.||37,836,046.69||62,847,700.91||
|Chongqing Jianshe Automobile Air-conditioner Co., Ltd.||37,810,978.41||71,333,271.84||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd.||33,857,713.97||39,419,147.84||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd.||23,832,720.53||748,874.25||
|Chengdu Wanyou Filter Co., Ltd.||20,513,534.18||14,495,391.54||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd.||19,430,898.24||12,522,328.50||
|Chongqing Shangfang Automobile Fittings Co., Ltd.||17,173,815.05||16,654,102.47||
|Longchang Shanchuan Shock-absorbing Vehicles Parts Co., Ltd.||16,076,620.75||10,314,312.25||
|Chongqing Wanyou Economic Development Co., Ltd.||15,705,418.84||19,331,791.01||
|Chengdu Lingchuan Special Industry Co., Ltd.||15,243,707.30||13,751,316.61||
|Changan Ford Automobile Co., Ltd.||9,270,810.87||14,814,080.88||
|Chengdu Huachuan Electric Equipment Co., Ltd.||8,997,687.52||2,091,191.98||
|Chongqing Changrong Machinery Co., Ltd.||8,962,364.46||8,945,469.86||
|Sichuan Hongguang Machinery and Electrics Co., Ltd.||6,309,820.98||587,194.88||
|Chongqing Changfeng Jiquan Machinery Co., Ltd.||4,909,024.51||4,034,553.99||
|Chongqing Qingshan Transmission Sales Co., Ltd.||4,630,437.00||3,510,369.53||
|Chongqing Yihong Engineering Plastic Products Co., Ltd.||3,947,802.82||388,320.89||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd.||3,886,641.32||8,646,420.87||
|Chengdu Guangming Tianzhong Environmental Protection TechnologyCo., Ltd.||3,459,532.82||-||
|Chengdu Ningxing Automobile Spring Co., Ltd.||3,164,034.29||2,636,191.41||
|Chongqing Xiyi Automobile Linkage Rod Co., Ltd.||2,828,606.92||3,094,672.85||
|Chongqing Dajiang Jiexing Forging Co., Ltd.||2,349,986.93||-||
|China Changan Automobile Co., Ltd. – Chengdu Jian'an AutomobileBridge Branch||1,847,863.97||4,225,567.85||
|Yunnan Xiyi Industries Co., Ltd.||1,690,738.76||6,307,781.87||
|Chongqing Changan Visteon Engine Control Systems Co., Ltd.||1,459,824.16||4,415,046.05||
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd.||695,931.69||460,309.02||
|Chongqing Jialing Yimin Special Equipment Co., Ltd.||362,102.19||-||
|Changan Industries Group Co. Ltd.||347,476.12||1,470,171.48||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||295,982.89||1,588.50||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||225,194.03||-||
|Chongqing Automobile Air-conditioner Co., Ltd.||205,041.51||205,041.51||
|Beijing Beiji Mechanical and Electrical Industry Co., Ltd.||135,480.50||187,931.10||
|Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd.||125,679.59||78,777.22||
|Chongqing Dajiang Yuqiang Plastic Co., Ltd.||119,814.74||86,896.33||
|Chongqing Changan Kuayue Automobile Co., Ltd.||77,208.01||77,208.01||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||24,727.51||-||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||21,844.49||-||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||10,589.08||-||
|Nanning Wanyou Auto Sales and Service Co., Ltd.||6,664.63||-||
|Chengdu Wanyou Trading Co., Ltd.||568.89||-||
||Total|1,270,671,246.45||930,755,054.47||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
Advances from customers
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013(Restated)|
|Chongqing Wanyou Economic Development Co., Ltd.||224,012,279.88||22,423,321.66||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||124,492,768.07||33,777,648.07||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||97,055,869.67||26,371,376.55||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||92,748,342.34||37,904,652.54||
|Wanyou Automobile Investment Co., Ltd.||60,787,767.00||66,697,598.00||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||45,908,401.66||16,744,132.43||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||12,826,075.48||7,808,775.67||
|Nanning Wanyou Auto Sales and Service Co., Ltd.||12,102,977.87||3,942,335.87||
|China Changan Automobile Group Tianjin Sales Co., Ltd.||9,923,044.00||3,352,511.00||
|Yunnan Xiangyu Auto Sales and Service Co., Ltd.||5,616,867.00||-||
|United Prosperity Investment Co., Ltd.||4,343,194.69||-||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||361,998.32||346,716.96||
|Chengdu Wanyou Trading Co., Ltd.||38,295.50||-||
|Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd.||1,890.04||-||
|Harbin Dongan Auto Engine Co., Ltd.||44.94||-||
|Jiangling Holding Co., Ltd.||-||499,717.24||
|China Changan Automobile Group Chongqing Guangda Sales Co., Ltd.||-||21,843.52||
||Total|690,219,816.46||219,890,629.51||

 Other payables
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013(Restated)|
|Chongqing Changan Min Sheng Logistics Co., Ltd.||233,978,891.80||227,774,641.76||
|United Prosperity Investment Co., Ltd.||192,977,320.11||-||
|Changan Industries Group Co. Ltd.||14,260,455.80||6,228,519.04||
|Chongqing Changan Construction Co., Ltd.||8,113,625.16||23,769,391.30||
|Hafei Motor Co., Ltd.||1,892,739.54||4,811,080.37||
|Chongqing Wanyou Construction Co., Ltd.||870,654.00||242,726.00||
|Chongqing Changan Property Management Co., Ltd.||793,985.65||1,345,904.19||
|Chongqing Wanyou Economic Development Co., Ltd.||253,841.75||67,233.45||
|Chongqing Changan Real Estate Development Co., Ltd.||250,690.60||74,374.90||
|Yunnan Wanyou Auto Sales and Service Co., Ltd.||224,025.84||821,010.31||
|Chengdu Wanyou Economic Technological Development Co., Ltd.||151,537.60||125,509.91||
|Chengdu Wanyou Filter Co., Ltd.||120,000.00||120,000.00||
|Guangxi Wanyou Auto Sales and Service Co., Ltd.||100,000.00||-||
|Guizhou Wanyou Auto Sales and Service Co., Ltd.||100,000.00||-||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd.||82,651.45||1,331,884.26||
|CSIA - Jian'an Automobile Bridge Branch||1,000.00||1,000.00||
|Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd.||-||72,770.27||
|Suining Wanyou Auto Sales and Service Co., Ltd.||-||32,968.00||
|Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd.||-||18,301.40||
|Chengdu Wanyou Trading Co., Ltd.||-||13,825.70||
||Total|454,171,419.30||266,851,140.86||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
7. Cash deposited in related party
|||||||
|-|-|-|-|-|-|
||Related party||2014||2013(Restated)|
|China South Industry Group Finance Co., Ltd.||2,629,151,710.51||790,903,414.89||

 Deposits earn interest at the respective bank deposit rates.
8. Loans from related parties
Short-term loans
|||||||
|-|-|-|-|-|-|
||Related parties||2014||2013(Restated)|
|China South Industry Group Finance Co., Ltd.||50,000,000.00||1,050,000,000.00||
|China Changan Automobile Group Co ,Ltd.||-||100,000,000.00||
||Total|50,000,000.00||1,150,000,000.00||

 Non-current liabilities within one year
|||||||
|-|-|-|-|-|-|
||Related party||2014||2013|
|China South Industry Group Finance Co., Ltd.||-||20,000,000.00||

 Long-term loans
|||||||
|-|-|-|-|-|-|
||Related party||2014||2013|
|China South Industry Group Finance Co., Ltd.||-||470,000,000.00||

 The interest rates of short-term loans and long-term loans are determined in accordance with the current bank loan rate.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
XI Contingencies and commitments
1. Commitments
Capital commitments
|||||||
|-|-|-|-|-|-|
||Item||2014||2013 (restated)|
|Contracted, but not provided for||17,047,297,904.10||5,380,877,554.25||
|Approved by board, but not contracted||430,913,750.00||4,583,381,796.00||
||Total|17,478,211,654.10||9,964,259,350.25||

 Investment commitments
On 31 December 2014, there is no investment commitment contracted but not completed (31 December 2013 : Nil )
2. Contingencies
As at 31 December 2014, no material contingencies needed to be disclosed.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
XII Events after the balance sheet date
1. The dividends after balance sheet date
|||
|-|-|
|Profits or dividends to be allocated|Refer to Note V 43.|

2. Other events after the balance sheet date
In January 2015, the Company signed contract with its parent company China Changan, its related paty United Prosperity Investment Co., Ltd, and South Industry Assets Management Co.,Ltd, which is controlled by the same ultimate holding company, and made an agreement that the Company invested in United Prosperity Investment (Shenzheng) Co., Ltd (The company name is tentative) by USD 5 million. This investment has been approved by the twenty-sixth meeting of the sixth session of the Board of Directors. Thereafter, the proportion of equity in Prosperity Investment (Shenzheng) Co., Ltd of the Company, China Changan, United Proseprity Investment Co., Ltd. and South Industry Assets Management Co., Ltd. will be5%,5%,85% and5% respectively. As of the approval date of financial statement, no significant event was noted except the above.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
XIII Other important event
1. Leasing arrangements
According to the lease contracts signed with the lessor, the minimum leases payments under non-cancellable leases are as follows:
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Less than 1 year (including 1 year)||28,733,029.03||27,278,638.26||
|1 to 2 years (including 2 years)||2,768,199.03||1,176,173.92||
|2 to 3 years (including 3 years)||969,649.44||628,998.92||
|Over 3 years||5,400,000.00||314,499.46||
||Total|37,870,877.50||29,398,310.56||

 2. Segment report
The Group identifies operating segments based on the internal organization structure, managerial requirements and internal reporting system, and identifies reportable segments based on operating segments and discloses segment information by operating segment.
An operating segment is a component of the Group that meets all the following conditions:
(1) it engages in business activities from which it may earn revenues and incur expenses;
(2) its operating results are regularly reviewed by theCompany’s management to make decisions about resources to be allocated to the segment and assess its performance; and
(3) the Group is able to obtain relevant accounting information such as its financial position, operating results and cash flows.
If two or more segments have similar economic characteristics and meet certain conditions, they can be aggregated into a single operating segment.
The revenue and profit of the Group mainly consist of the automobile manufacturing and domestic sales. TheGroup’s principal assets are in china. The operating performance of the Group has been evaluated as a whole by the management. So the segment report has not been prepared for this year.
3. Comparative data
As stated in Note II 2, related accounting methodsrelated accounting treatment, disclosure and financial datas in financial statements are revised in accordance with certain Accounting Standards for Business Enterprises adopted from 1 July July the first, 2014. Accrodingly, related financial data of prior year, and relaed comparative data have been restated or reclassified. Meanwhile, as there was a business combination involving entity under common control, comparative data has been restated.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
XIV Notes to theCompany’s financial statements
1. Accounts Receivable
(1) An aged analysis of the accounts receivable as at the end of reporting period is as follows:
2014 2013 Within 1 year 2,186,464,400.10 1,320,170,130.72 1 to 2 years 560,274,728.97 43,706,677.51 2 to 3 years 1,900,100.00 11,103,089.64 Over 3 years 55,509,062.79 58,497,580.08 2,804,148,291.86 1,433,477,477.95 Provision (42,238,460.64) (39,547,040.38) 2,761,909,831.22 1,393,930,437.57 The movements in provision for impairment of accounts receivable are as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Reduction||||
|||Beginning||Addition||Reversal Write-off|||Ending Balance|
|2014|39,547,040.38||2,982,767.01||291,346.75||-|42,238,460.64||
|2013|37,508,407.16||2,038,633.22||-||-|39,547,040.38||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
1. Accounts Receivable (continued)
(2) An analysis of the accounts receivable by category as at the end of the reporting period is as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||||2013|||||||
||Item||Balance||||Provision||||Balance||||Provision|||
||||Amount||%||Amount||%||Amount||%||Amount||%|
|Individually significantitems and analyzedindividually for provision||45,088,295.09||1.61||-||-||40,432,696.53||2.82||-||-||
|Accounts receivable analyzed as groups for provision||||||||||||||||||
|Group 1. Accountsreceivable analyzed forprovision according toaging analysis||277,846,638.96||9.91||42,238,460.64||15.20||59,555,988.83||4.16||39,547,040.38||66.40||
|Group 2. Accountsreceivable from relatedparties||2,481,213,357.81||88.48||-||-||1,333,488,792.59||93.02||-||-||
|Group subtotal||2,759,059,996.77||98.39||42,238,460.64||1.53||1,393,044,781.42||97.18||39,547,040.38||2.84||
|Individually insignificantitems but analyzedindividually for provision||-||-||-||-||-||-||-||-||
|||2,804,148,291.86||100.00||42,238,460.64||||1,433,477,477.95||100.00||39,547,040.38||||
||Total|||||||||||||||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
1. Accounts Receivable (continued)
Within groups, accounts receivable analyzed for provision according to aging analysis:
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||2013|||||
||Aging||Balance||||||Balance|||||
||||||||Provision||||||Provision|
||||Amount||%||||Amount||%|||
|Within 6 months||232,145,184.96||83.56||-||11,723,964.33||19.69||-||
|6 to 12 months||3,720.00||0.00||186.00||234,146.46||0.39||11,707.32||
|Within 1 year subtotal||232,148,904.96||83.56||186.00||11,958,110.79||20.08||11,707.32||
|1 to 2 years||-||-||-||2,078,683.07||3.49||207,868.31||
|2 to 3 years||2,034,616.77||0.73||610,385.03||878,111.50||1.47||263,433.45||
|3 to 4 years||-||-||-||11,154,104.35||18.73||5,577,052.18||
|4 to 5 years||10,176,138.11||3.66||8,140,910.49||-||-||-||
|Over 5 years||33,486,979.12||12.05||33,486,979.12||33,486,979.12||56.23||33,486,979.12||
||Total|277,846,638.96||100||42,238,460.64||59,555,988.83||100||39,547,040.38||

 Within groups, accounts receivable analyzed for provision with other methods:
|||||||
|-|-|-|-|-|-|
||Group||Balance||Provision|
|Accounts receivable from related parities||2,481,213,357.81||-||

 As at 31 December 2014, there was no individually significant items but analyzed individually for provision (2013: Nil).
(3) For the year ended 2014, provision for impairment of accounts receivable has been reversed amounts to RMB 291,346.75(2013:Nil).
(4) For the year ended 2014, there is no write-off of provision for bad debts (2013: Nil).
(5) As at 31 December 2014, top five debtors of accounts receivable are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||||||Proportion of total accounts||Ending balance|
||Debtors||Amount|||||
||||||receivable (%)||of provision|
|First||1,361,998,669.22||48.57||-||
|Second||415,981,705.13||14.83||-||
|Third||220,704,577.35||7.87||-||
|Forth||142,144,328.91||5.07||-||
|Fifth||130,594,616.37||4.66||-||
||Total|2,271,423,896.98||81.00||-||

 (6) There is no accounts receivable derecognized due to transference of financial assets during 2014 (2013:
Nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Other receivables
(1) An aged analysis of the other receivables as at the end of the reporting period is as follows:
2014 2013 Within 1 year 650,367,439.20 518,767,650.62 1 to 2 years 5,695,601.19 10,388,237.71 2 to 3 years 9,865,955.42 22,118,265.16 Over 3 years 4,207,359.05 2,361,744.00 670,136,354.86 553,635,897.49 Provision (1,976,498.02) (2,890,162.19) 668,159,856.84 550,745,735.30 The movements in provision for impairment of other receivables are as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Deduction|||Ending Balance|
|||Opening Balance||Addition||||||
|||||||Reversal||Write-off||
|2014|2,890,162.19||199,234.14||547,628.31||565,270.00||1,976,498.02|
|2013|2,740,878.98||149,283.21||-||-||2,890,162.19|

 (2) An analysis of other receivables by category as at the end of reporting period is as follows:
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||2014||||||||2013||||||
||Item|Balance||||Provision||||Balance|||Provision|||
|||Amount||%||Amount||%||Amount||%|Amount||%|
|Individually significantitems and analyzedindividually forprovision||123,832,000.00|18.48||-||-||123,460,000.00||22.30||-|-||
|Other receivables analyzed as groups for provision||||||||||||||||
|Group 1. Otherreceivables analyzedfor provisionaccording to aginganalysis||81,576,371.15|12.17||1,976,498.02||2.42||43,265,117.90||7.81||2,890,162.19|6.68||
|Group 2. Otherreceivables fromrelated parties||464,727,983.71|69.35||-||-||386,910,779.59||69.89||-|-||
|Group subtotal||546,304,354.86|81.52||1,976,498.02||0.36||430,175,897.49||77.70||2,890,162.19|0.67||
||Total|670,136,354.86|100||1,976,498.02||||553,635,897.49||100||2,890,162.19|||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Other receivables (continued)
Within groups, other receivables analyzed for provision according to aging analysis:
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||2014||||||2013|||||
||Aging||Balance||||||Balance|||||
||||||||Provision||||||Provision|
||||Amount||%||||Amount||%|||
|Within 6 months||77,276,646.60||94.73||-||34,538,599.66||79.83||-||
|6 to 12 months||370,404.77||0.45||18,520.24||4,018,896.42||9.29||200,944.80||
|Within 1 yearsubtotal||77,647,051.37||95.18||18,520.24||38,557,496.08||89.12||200,944.80||
|1 to 2 years||1,876,797.77||2.30||187,679.78||369,199.81||0.85||36,919.99||
|2 to 3 years||65,000.00||0.08||19,500.00||1,976,678.01||4.57||593,003.40||
|3 to 4 years||254,448.01||0.31||127,224.01||600,900.00||1.39||300,450.00||
|4 to 5 years||547,500.00||0.67||438,000.00||10,000.00||0.02||8,000.00||
|Over 5 years||1,185,574.00||1.46||1,185,573.99||1,750,844.00||4.05||1,750,844.00||
||Total|81,576,371.15||100.00||1,976,498.02||43,265,117.90||100.00||2,890,162.19||

 (3) For the year ended 2014, provision for impairment of other receivables has been reversed amounts to RMB 547,628.31(2013: Nil).
(4) For the year ended 2014, provision for impairment of other receivables has been written off amounts to RMB 565,270.00 (2013: Nil).
(5) Other receivables catergorized by nature is as follows:
|||||||
|-|-|-|-|-|-|
||Nature||2014||2013|
|Warranty||227,831,662.61||53,672,725.02||
|Energy-saving subsidy||123,832,000.00||123,460,000.00||
|Disposal income of assets||94,999,768.40||19,161,427.05||
|Sales income of molds||89,085,988.80||-||
|Petty cash||50,443,213.37||31,824,541.12||
|Technical royalties||25,556,158.23||-||
|Security deposits||24,926,854.13||2,155,959.00||
|Loans to third parties||24,782,800.00||300,000,000.00||
|Disbursements||5,695,779.26||16,885,523.41||
|Others||1,005,632.04||3,585,559.70||
||Total|668,159,856.84||550,745,735.30||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2. Other receivables (continued)
(6) As at 31 December 2014, top five debtors of other receivables are as follows:
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Relationship with the||||||Proportion of total other||Ending balance|
||Debtors||||Amount||Aging|||||
||||Company||||||receivables (%)||of provision|
|First||Subsidiary||196,913,889.05||Within 1 year||29.38||-||
|Second||Subsidiary||151,457,274.07||Within 1 year||22.60||-||
|Third||Not related||123,832,000.00||Within 1 year||18.48||-||
|Forth||Subsidiary||69,590,470.83||Within 1 year||10.38||-||
|Fifth||Subsidiary||24,782,800.00||Within 1 year||3.70||-||
||Total|||566,576,433.95||||84.54||-||

 (7) There is no other receivables derecognized due to transfer of financial assets during 2014 (2013: Nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
3. Long-term equity investments
2014
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Other|||||||||||
||||||||||Investment||compreh||Other||||||||Ending|
||||||||||income/loss under||ensive||movements of||Dividend of cash||||Ending Balance of book||Balance of|
||Investee||Opening Balance||Addition||Deduction||equity method||income||equity||declared||Provision||value||provision|
|Joint ventures||||||||||||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd.||1,422,871,007.19||-||(28,024,712.81)||10,299,515.59||-||3,127,864.50||-||-||1,408,273,674.47||-||
|Jiangling Holding Co., Ltd.||1,970,068,511.81||-||-||363,988,695.87||-||-||-||-||2,334,057,207.68||-||
|Changan Ford AutomobileCo., Ltd.||5,168,880,471.54||-||-||7,148,483,522.43||-||-||(7,700,000,000.00)||||4,617,363,993.97||-||
|Changan MazdaAutomobile Co., Ltd.||1,165,287,267.32||-||-||120,709,554.23||-||-||-||-||1,285,996,821.55||-||
|Changan Ford MazdaEngine Co., Ltd.||599,468,669.92||-||-||507,303,463.50||-||-||-||-||1,106,772,133.42||-||
|Changan PSAAutomobiles Co., Ltd.||1,957,257,672.14||-||-||(161,510,779.33)||-||-||-||-||1,795,746,892.81||-||
|Associates||||||||||||||||||||||
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd.||8,772,039.08||-||-||448,145.51||-||-||-||-||9,220,184.59||-||
|Chongqing ChanganKuayue Automobile Co.,Ltd.||64,068,246.00||-||-||2,490,445.97||-||-||-||-||66,558,691.97||-||
|Chongqing ChanganKuayue Automobile SalesCo., Ltd.||-||-||-||-||-||-||-||-||-||-||
|Beijing Fang’an taxi Co.,Ltd.||998,629.64||-||-||(998,629.64)||-||-||-||-||-||-||
|||||||||||||||||||||-||
|Subsidiaries||||||||||||||||||||||
|Nanjing ChanganAutomobile Co., Ltd.||422,533,259.00||-||-||-||-||-||-||-||422,533,259.00||-||
|Hebei Changan AutomobileCo., Ltd.||437,935,236.00||288,000.00||-||-||-||-||-||-||438,223,236.00||-||
|Chongqing ChanganInternational AutomobileSales Co., Ltd.||13,068,580.00||-||-||-||-||-||-||-||13,068,580.00||-||
|Chongqing ChanganAutomobile supportingservice Co., Ltd.||29,700,000.00||-||-||-||-||-||-||-||29,700,000.00||-||
|Chongqing ChanganAutomobile Sales Co.,Ltd.||48,500,000.00||-||-||-||-||-||-||-||48,500,000.00||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Chongqing ChanganAutomobile salessubsidiaries|8,050,000.00|-|-|-|-|-|-|-|8,050,000.00|-|
|Chongqing Changan SpecialAutomobile sales Co.,Ltd.|2,500,000.00|-|-|-|-|-|-|-|2,500,000.00|-|
|Chongqing Changan EuropeDesign Academy Co.,Ltd.|134,879,700.00|-|-|-|-|-|-|-|134,879,700.00|-|
|Chongqing Changan newEngergy Automobile Co.Ltd.|18,850,000.00|-|-|-|-|-|-|-|18,850,000.00|-|
|Changan United KingdomR&D Center Co., Ltd.|981,934.40|-|-|-|-|-|-|-|981,934.40|-|
|Beijing Changan R&DCenter Co., Ltd.|1,000,000.00|-|-|-|-|-|-|-|1,000,000.00|-|
|Harbin Changan R&DCenter Co., Ltd.|1,000,000.00|-|-|-|-|-|-|-|1,000,000.00|-|
|Jiangxi Changan R&DCenter Co., Ltd.|2,000,000.00|-|(2,000,000.00)|-|-|-|-|-|-|-|
|Shanghai Changan R&DCenter Co., Ltd.|1,000,000.00|-|-|-|-|-|-|-|1,000,000.00|-|
|Changan Japan DesigningCenter Co., Ltd.|1,396,370.15|-|-|-|-|-|-|-|1,396,370.15|-|
|Changan United StatesR&D Center Co., Ltd.|1,317,720.00|-|-|-|-|-|-|-|1,317,720.00|-|
|Hebei Baoding ChanganBus Co., Ltd.|176,002,613.18|-|-|-|-|-|-|-|176,002,613.18|-|
|Hefei Changan AutomobileCompany Ltd.|-|35,367,765.23|-|-|-|-|-|-|35,367,765.23|-|
|Changan AutomobileRussia Co., Ltd.|-|1,242,589.15|-|-|-|-|-|-|1,242,589.15|-|
|Changan Brazil HoldingsLimited|-|2,161,591.21|-|-|-|-|-|-|2,161,591.21|-|
|Total|13,658,387,927.37|39,059,945.59|(30,024,712.81)|7,991,213,934.13|-|3,127,864.50|(7,700,000,000.00)|-|13,961,764,958.78|-|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
2013
||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Investment||Other||Other|Dividend of cashdeclared||||||Ending|
||||||||||income/loss under||comprehen||movements of||Dividend of cash|||Ending Balance of book||Balance of|
||Investee||Opening Balance||Addition||Deduction||equity method||sive income||equity||declared|Provision||value||provision|
|Joint ventures|||||||||||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd.||1,421,953,088.21||-||-||917,918.98||-||-||-||-|1,422,871,007.19||-||
|Jiangling Holding Co., Ltd.||1,706,722,325.52||-||-||263,346,186.29||-||-||-||-|1,970,068,511.81||-||
|Changan Ford AutomobileCo., Ltd.||2,677,677,911.23||-||-||4,091,202,560.31||-||-||(1,600,000,000.00)||-|5,168,880,471.54||-||
|Changan MazdaAutomobile Co., Ltd.||1,115,310,608.80||-||-||49,976,658.52||-||-||||-|1,165,287,267.32||-||
|Changan Ford MazdaEngine Co., Ltd.||475,236,298.82||-||-||124,232,371.10||-||-||-||-|599,468,669.92||-||
|Changan PSAAutomobiles Co., Ltd.||-||2,007,841,700.00||-||(50,584,027.86)||-||-||-||-|1,957,257,672.14||-||
|Associates|||||||||||||||||||||
|Chongqing HelpGoInformation TechnologyCo., Ltd.||10,316,211.80||-||(10,316,211.80)||-||-||-||-||-|-||-||
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd.||8,415,002.53||-||-||357,036.55||-||-||-||-|8,772,039.08||-||
|Chongqing ChanganKuayue Automobile Co.,Ltd.||63,870,734.11||-||-||197,511.89||-||-||-||-|64,068,246.00||-||
|Chongqing ChanganKuayue Automobile SalesCo., Ltd.||-||-||-||-||-||-||-||-|-||-||
|Beijing Fang’an taxi Co.,Ltd.||6,000,000.00||-||-||(5,001,370.36)||-||-||-||-|998,629.64||-||
|Subsidiaries|||||||||||||||||||||
|Nanjing ChanganAutomobile Co., Ltd.||413,805,259.00||8,728,000.00||-||-||-||-||-||-|422,533,259.00||-||
|Hebei Changan AutomobileCo., Ltd.||437,635,236.00||300,000.00||-||-||-||-||-||-|437,935,236.00||-||
|Chongqing ChanganInternational AutomobileSales Co., Ltd.||13,068,580.00||-||-||-||-||-||-||-|13,068,580.00||-||
|Chongqing ChanganAutomobile supportingservice Co., Ltd.||29,700,000.00||-||-||-||-||-||-||-|29,700,000.00||-||
|Chongqing ChanganAutomobile Sales Co.,||48,500,000.00||-||-||-||-||-||-||-|48,500,000.00||-||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Ltd.|||||||||||
|Chongqing ChanganAutomobile salessubsidiaries|8,050,000.00|-|-|-|-|-|-|-|8,050,000.00|-|
|Chongqing ChanganSpecial Automobile salesCo., Ltd.|2,500,000.00|-|-|-|-|-|-|-|2,500,000.00|-|
|Chongqing ChanganEurope Design AcademyCo., Ltd.|134,879,700.00|-|-|-|-|-|-|-|134,879,700.00|-|
|Chongqing Changan newEngergy Automobile Co.Ltd.|18,850,000.00|-|-|-|-|-|-|-|18,850,000.00|-|
|Changan United KingdomR&D Center Co., Ltd.|981,934.40|-|-|-|-|-|-|-|981,934.40|-|
|Beijing Changan R&DCenter Co., Ltd.|1,000,000.00|-|-|-|-|-|-|-|1,000,000.00|-|
|Harbin Changan R&DCenter Co., Ltd.|1,000,000.00|-|-|-|-|-|-|-|1,000,000.00|-|
|Jiangxi Changan R&DCenter Co., Ltd.|2,000,000.00|-|-|-|-|-|-|-|2,000,000.00|-|
|Shanghai Changan R&DCenter Co., Ltd.|1,000,000.00|-|-|-|-|-|-|-|1,000,000.00|-|
|Changan Japan DesigningCenter Co., Ltd.|1,396,370.15|-|-|-|-|-|-|-|1,396,370.15|-|
|Changan United StatesR&D Center Co., Ltd.|1,317,720.00|-|-|-|-|-|-|-|1,317,720.00|-|
|Hebei Baoding ChanganBus Co., Ltd.|176,002,613.18|-|-|-|-|-|-|-|176,002,613.18|-|
|Total|8,777,189,593.75|2,016,869,700.00|(10,316,211.80)|4,474,644,845.42|-|-|(1,600,000,000.00)|-|13,658,387,927.37|-|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
4. Operating revenue and cost
(1) Operating revenue, operating cost
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||2014||||2013|||
||Item|||||||||
||||Revenue||Cost||Revenue||Cost|
|PrimaryOperation||51,229,276,554.88||42,760,989,717.11||32,188,012,740.23||26,654,719,173.47||
|OtherOperation||1,265,377,194.16||685,289,608.51||1,048,667,930.67||590,723,617.76||
||Total|52,494,653,749.04||43,446,279,325.62||33,236,680,670.90||27,245,442,791.23||

 (2) Revenue listed by products are as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||2014||||2013|||
||Item|||||||||
||||Revenue||Cost||Revenue||Cost|
|Sales ofgoods||52,283,588,111.85||43,257,415,173.92||33,024,462,891.90||27,055,776,426.79||
|Outsourcingprocessing||211,065,637.19||188,864,151.70||212,217,779.00||189,666,364.44||
||Total|52,494,653,749.04||43,446,279,325.62||33,236,680,670.90||27,245,442,791.23||

 5. Investment income
(1) Details of investment income
|||||||
|-|-|-|-|-|-|
||Item||2014||2013|
|Long-term equity investment income underequity method||7,991,213,934.13||4,474,644,845.42||
|Long-term equity Iinvestment income throughresulted from disposal of long-term equity||(1,236,986.88)||(250,733.75)||
|Investment income during holding period ofavailable-for-sale financial assets||33,382,435.46||28,788,203.42||
|Others||6,035,833.33||10,941,666.67||
||Total|8,029,395,216.04||4,514,123,981.76||

 (2) Available-for-sale financial assets under cost method
|||||||
|-|-|-|-|-|-|
||Investee||2014||2013|
|China South Industry Group Finance Co., Ltd.||31,252,435.46||23,413,203.42||
|Chongqing Ante trading Co., Ltd||-||3,600,000.00||
||Total|31,252,435.46||27,013,203.42||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
5. Investment income (continued)
(3) Long-term equity investment income under equity method
|||||||||
|-|-|-|-|-|-|-|-|
||Investee||2014||2013||Reason for the fluctuation|
|Changan Ford Automobile Co., Ltd.||7,148,483,522.43||4,091,202,560.31||Increase in profit due to salesexpansion||
|Changan Mazda Automobile Co.,Ltd.||507,303,463.50||49,976,658.52||Increase in profit due to salesexpansion||
|Chongqing Changan SuzukiAutomobile Co., Ltd.||10,299,515.59||917,918.98||Increase in profit due to salesexpansion||
|Changan Ford Mazda Engine Co.,Ltd.||120,709,554.23||124,232,371.10||Increase in profit due to salesexpansion||
|Jiangling Holding Co., Ltd.||363,988,695.87||263,346,186.29||Increase in profit due to salesexpansion||
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd.||448,145.51||357,036.55||Increase in profit due to salesexpansion||
|Beijing Fang’an Taxi Co., Ltd.||(998,629.64)||(5,001,370.36)||DeIncrease in lossprofit dueto sales expansion||
|Changan PSA Automobiles Co.,Ltd.||(161,510,779.33)||(50,584,027.86)||High cost due to initialoperation||
|Chongqing Changan KuayueAutomobile Co.,Ltd.||2,490,445.97||197,511.89||Increase in profit due to salesexpansion||
|||7,991,213,934.13||4,474,644,845.42||Increase in profit due to salesexpansion||
||Total|||||||

1. Schedule of non-recurring profit and loss
|||||
|-|-|-|-|
||Item||2014|
|Gain and loss arising from disposal of non-current assets (including write-off of accrued impairment losson assets)||(17,293,198.19)||
|Government grants (excluding the grants closely related to enterprise business, which the Groupenjoyed according to the allotment standards or quantitative criteria of the country)||339,001,795.70||
|Profit arising from subsidiary under common control from opening to business combinationdate||(43,390,581.51)||
|Other non-operating income and expenses||40,605,150.13||
|Capital occupied income from non-financial entities||36,729,835.74||
|Effect on income tax||(66,584,968.46)||
|Effect on minority shareholders (after tax)||(6,995,127.07)||
||Total|282,072,906.34||

 Note: the non-recurring profit and loss were presented with amount before tax.
The Group disclosed non-recurring profit and loss items in accordance with the regulations issued by China Security Regulation Commission, No 1 Regulation of Information Disclosure of Public Companies-Non-recurring Profit and Loss<CSRC2008(43)>
2. Return on equity and earnings per share
2014
||||||||
|-|-|-|-|-|-|-|
|||Weighted average||Earnings per share|||
|Profit|||||||
|||return on equity (%)||Basic EPS||Diluted EPS|
|Net profit attributable to the Company’s ordinary|34.20||1.62||N/A||
|shareholders|||||||
|Net profit attributable to the Company’s ordinary|32.96||1.56||N/A||
|shareholders after deducting non-recurring profit and|||||||
|loss|||||||

2013
||||||||
|-|-|-|-|-|-|-|
|||Weighted average||Earnings per share|||
|Profit|||||||
|||return on equity (%)||Basic EPS||Diluted EPS|
|Net profit attributable to the Company’s ordinary|21.77||0.72||N/A||
|shareholders|||||||
|Net profit attributable to the Company’s ordinary|20.27||0.67||N/A||
|shareholders after deducting non-recurring profit and|||||||
|loss|||||||

The Company has no dilutive potential ordinary shares.
In accordance with the regulations issued by China Security Regulation Commission, Regulation of Information Disclosure of PublicCompanies—the Calculation and Disclosure of Return of Net Assets and Earning per Share (2010 Revision), the Group disclosed the return of net assets and earnings per share in the reporting period. The basic earnings per share is calculated by the net profit attributable to theCompany’s ordinary shareholders divided by the weighted average outstanding ordinary shares.
Chapter 11 Documents for Future Reference
1. Financial reports with signatures and stamps of the legal representative, the chief accountant and the chief of accounting organization.
2. The original copy of audit report with the stamp of the CPA firm and the signature and stamp of the Certified Public Accountant.
3. All the original documents and manuscripts of the Company which has been disclosed in the reporting period in the newspapers designated by China Securities Regulatory Commission.
Annual reports disclosed in other securities markets.
Chairman of the Board: General Manager:
Mr. Xu Liuping Mr. Zhu Huarong
Chongqing Changan Automobile Co., Ltd.
15 April, 2014