Chongqing Changan Automobile
Company Limited
2013 Annual Report
April, 2013
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.
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.
Other directors attended the board meeting on auditing the report except for the following directors:
||||
|-|-|-|
|Name of the Director|Reasons for the absence|Name of the consignee|
|Wang zhixiong|On Business|Chen zhong|

The preplan profit distribution of the Company deliberated and approved by the Board is: taking the total shares as of Dec. 31, 2013 as the radix, sending cash dividends of RMB 1 Yuan (tax included) per every 10 shares to its all shareholders, and not converting capital reserve into share capital. 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 ........................................................................................ 4 Chapter 3 Summary of Accounting Data and Financial Indexes ............................... 7 Chapter 4 Report of the Board of Directors ............................................................... 9 Chapter 5 Important Matters .................................................................................... 22 Chapter 6 Changes in the shareholding of the company and shareholders .............. 27 Chapter7 Information about Directors, Supervisors, Senior Management and Employees ................................................................................................................... 32 Chapter8 Corporate Governance .............................................................................. 43 Chapter 9 Internal Control ........................................................................................ 47 Chapter 10Auditor’s Report ....................................................................................... 49 Chapter 11 Documents for Future Reference ............................................................ 210
Definitions
||||
|-|-|-|
|Changan Auto., theCompany|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 Changan Bus|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|
|Zhonghuifutong|Refers to|Zhonghui Fortis Investment Co., Ltd. a subsidiary company of China Changan|

Chapter 2 Company Profile
1. Basic Information
|||||
|-|-|-|-|
||Changan Automobile Changan B|Stock Code||
|Stock abbreviation|||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|||
||No. 260, East Jianxin Road Jiangbei District, Chongqing|||
|Registered address||||
|Post code of the registered||||
||400023|||
|address||||
||No. 260, East Jianxin Road, Jiangbei District, Chongqing|||
|Office address||||
|Post code of the office||||
||400023|||
|address||||
|Website|http://www.changan.com.cn|||
|E-mail address|cazqc@changan.com.cn|||

2. Contact Information
||||
|-|-|-|
||Secretary of the Board of Directors|Securities affairs representative|
|Name|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||

3. 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||

4. 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|||
||||||28546236-3|
|||Chongqing||51021120286320X||
|||||Yuguoshuizi||
|||No. 260, East||||
|Registration at the|||Yuzhi|||
|||Jianxin Road||||
|end of reporting|Aug. 24, 2012|||50010520286320XY|20286320-X|
|||Jiangbei District,||||
|period|||500000000005061|udishuizi||
|||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 Limited.||||
|All previous changes of dominant||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.||||

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

Chapter 3 Summary of Accounting Data and Financial Indexes 1. Major Accounting Data and Financial Indexes
Unit: Yuan
||||||
|-|-|-|-|-|
||||Increase/decrease on a||
||2013|2012||2011|
||||year-on-year basis (%)||
|Operating revenue (Yuan)|38,481,862,261.90|29,462,588,753.56|30.61%|26,551,846,548.17|
|Net profit belonging to shareholders|3,505,640,520.04|1,446,409,591.28|||
||||142.37%|967,940,639.48|
|of the listed company (Yuan)|||||
|Net profit belonging to shareholders|||||
|of the listed company after deduction|||||
||3,323,415,945.67|1,071,948,748.07|210.03%|794,691,915.61|
|of non-recurring profit and loss|||||
|(Yuan)|||||
|Net cash flow arising from operating|1,832,646,224.37|511,885,673.38|||
||||258.02%|207,217,572.62|
|activities (Yuan)|||||
|Basic earnings per share (Yuan/Share)|0.75|0.31|141.94%|0.2|
|Diluted earnings per share|0.75|0.31|||
||||141.94%|0.2|
|(Yuan/Share)|||||
|Return on equity (ROE) (%)|20.44%|9.66%|10.78%|6.86%|
||||Increase/decrease of||
||||the end of current year||
||End of 2013|End of 2012||End of 2011|
||||compared with that of||
||||the previous year (%)||
|Total assets (Yuan)|53,364,694,275.91|46,117,604,792.27|15.71%|36,532,118,115.54|
|Net assets belonging to shareholders|18,778,354,427.87|15,512,935,348.26|||
|of the listed company (Owner's equity|||||
||||21.05%|14,739,231,462.02|
|belonging to shareholders of the listed|||||
|company) (Yuan)|||||

2. Items of non-recurring profit and loss and related amounts:
Unit: Yuan
|||||
|-|-|-|-|
|Item|Amount of 2013|Amount of 2012|Amount of 2011|
|Profit and loss from disposal of non-current assets (including the|||11,722,827.07|
||-12,900,068.51|-2,659,276.68||
|write-off of assets depreciation reserves)||||
|Government subsidiaries included in current profit and loss|196,086,391.16|402,264,192.28|184,906,144.09|

|||||
|-|-|-|-|
|(except those closely related with the Company, which are||||
|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|||12,050,340.92|
|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|1,525,799.63|
|financial assets, liabilities or available for sale financial assets||||
|Other non-operating revenue and expenses except the||||
||1,842,308.38|5,351,829.85|-1,879,032.47|
|above-mentioned items||||
|Capital occupied income from non-financial entities|44,444,713.09|66,458,214.91|32,404,127.47|
|Less: Influenced amount of income tax|45,704,294.34|94,185,371.56|2,673,227.90|
|Amount of influence of minority shareholders’ equity (after tax)|1,212,068.41|1,575,352.96|173,248,723.87|
|Total|182,224,574.37|374,460,843.21|11,722,827.07|

Chapter 4 Report of the Board of Directors
Ⅰ.
Overview
The effect of company product structure adjustment was obvious in 2013, 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 annual business objectives and continued to consolidate the industry status; profit, sales revenue increased significantly, and created the situation that the profit growth is higher than revenue growth, and the earnings growth is higher than the sales growth. Throughout the year, the company and its affiliated joint enterprises and the associated enterprises produced 2.11 million vehicles and sold out 2.12 million vehicles, increased by21.1% and20.7% on year-on-year basis. Changan sold out 387,200 independent brand cars, up by67.89% on year-on-year basis. In China's automobile market, the company has obtained about9.64% market shares, increased by0.54% on 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 was development, product 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. For the reasons for the changes larger than30%, please refer to Supplementary Information to Financial Statements Note 3 “The major fluctuation and related explanation of theGroup’s financial statements”.
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 decsided at the beginning of the reporting period by the board of directors well. The total sales volume of the automobiles was 2.12 million, which completed107.61% of the planed business indicators. Sales revenue is 162.6 Billion Yuan (including full revenue from joint venture) on statistic basis, with123.65% over the annual plan, and 38.482 Billion Yuan from consolidated financial statements, with109.95% over the annual plan.
2、 Income
Unit: Ten Thousand Yuan
|||||
|-|-|-|-|
|Item|2013|2012|Increase/decrease on ayear-on-year basis (%)|
|operating revenue|3,848,186|2,946,259|30.61%|
|Investment income|450,660|186,854|141.18%|
|Operating profit|313,053|92,248|239.36%|

Non-operating income
22,461
42,060 -46.60%
|||||
|-|-|-|-|
|Total profit|331,556|132,743|149.77%|
|Net profit attributable to owners|350,564|144,641|142.37%|

 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, increase a lot. 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 decreased compared with the last reporting period, which was mainly due to the decrease of the government grant.
During the reporting period, the total sales amount from top five customer is RMB 4,326,268,374.12 Yuan and the proportion in the total annual sales amountis11.24%.
3、Cost
Unit: Ten Thousand Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Industryclassification|Item||2013|||2012||Increase/decreaseon a year-on-yearbasis (%)||
|||Amount||Ratio in|Amount||Ratio in||Increase/decrease|
|||||operation|||operation||on a year-on-year|
|||||cost (%)|||cost (%)||basis (%)|
|AutomobileProduction|Prodcut Sale|3,082,050||99.39%|2,309,625||99.09%||33.44%|
||Outsourcing|18,967||0.61%|21,270||0.91%||-10.83%|
|Total||3,101,016||100.00%|2,330,895||100.00%||33.04%|

 During the reporting period, the total purchase amount from top five suppliers is RMB 5,105,544,392.46 Yuan and the proportion in the total annual purchase amount is16.08%.
4、Expenses
Unit: Ten Thousand Yuan
|||||
|-|-|-|-|
|Item|2013|2012|increase/decrease|
|Business tax and surcharges|126,078|75,963|65.97%|
|Operating expenses|355,356|262,984|35.12%|
|Financial expenses|7,197|2,894|148.69%|
|Income tax expense|-15,293|-8,757|-74.64%|

Billion Yuan for development phase. In 2012, the expenditure for research and development project of the Company was 1.694 Billion Yuan, of which 1.163 Billion Yuan for research expenditure, 0.531 Billion Yuan for development phase.
6、Cash Flow
Unit: Ten Thousand Yuan
|||||
|-|-|-|-|
|Item|2013|2012|Increase/decrease|
|net cash flows from operating activities|183,265|51,189|258.02%|
|net cash flows from investing activities|-209,207|-367,973|43.15%|
|net cash flows from financing activity|45,196|251,468|-82.03%|
|Net increase in cash and cash equivalents|18,493|-65,322|128.31%|
|Cash and cash equivalents at end of year|377,043|358,550|5.16%|

 In 2013, the net cash flow generated from operating activities was 1.83 Billion Yuan, a year-on-year increase of 1.32 Billion Yuan, mainly resulting from the sales expansion; the total cash outflows from investing activities was 1.979 Billion Yuan, decreased amounted to 1.701 Billion yuan comparing to last year, mainly due to the reduce in payment for PPE purchase and CIP consturciton; The inflow of the net cash flow generated from financing activities was 0.45 Billion Yuan, a year-on-year decrease of 2.085 Billion Yuan, mainly resulting from the issue of corporate bonds amounted to 1.98 Billion Yuan in 2012.
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|3,773,504|30.71%|3,101,016|33.04%|17.82%|-1.44%|
|Classified by product|||||||
|（一）Vehicles|3,752,282|31.02%|3,082,050|33.44%|17.86%|-1.49%|
|Passenger Vehicle|1,956,376|105.14%|1,606,000|100.50%|17.91%|1.90%|
|Mini Vehicle|1,673,920|-4.65%|1,418,977|1.03%|15.23%|-4.76%|
|（二）Outsourcing|21,222|-7.53%|18,967|-10.83%|10.63%|3.31%|

Ⅳ、Assets
and liability analysis
1、The significant changes of the assets
Unit: Ten Thousand Yuan
||||||||
|-|-|-|-|-|-|-|
||Dec.31,2013||Dec.31,2012||||
||||||Increase/d||
|||Ratio in total||Ratio in total|||
|Item|||||ecrease|instructions|
|||assets||assets|||
||||||(%)||
||Amount|(%)|Amount|（%）|||
|Cash|428,171.56|8.02%|419,976.39|9.11%|-1.09%||
|Accounts|||||||
|||0.71%||0.95%|-0.24%||
|receivable|38,001.73||43,838.43||||
|Inventories|472,858.23|8.86%|491,103.00|10.65%|-1.79%||
|||||||maily resulting from the sharply|
|||||||increase in profit from Changan Ford,|
|Long-term equity|||||||
||1,246,648.18|23.36%|759,431.15|16.47%|6.89%|the joint venture, and the completion of|
|investments|||||||
|||||||acquisition of the 50% shares of CAPSA|
|||||||during the reporting period;|
|Fixed assets|1,374,076.34|25.75%|1,162,706.81|25.21%|0.54%||
|||||||proportion of construction in process|
|||||||decreased maily resulting from the|
|||2.49%||6.08%|-3.59%||
|Construction in||||||completion of construction and|
|progress|132,877.38||280,532.89|||transferring to PPE.|

2、The significant changes of the liability
Unit: Ten Thousand Yuan
||||||||
|-|-|-|-|-|-|-|
||Dec.31,2013||Dec.31,2012||||
||||||Increase/decrea||
|Item||Ratio in total assets||Ratio in total assets||instructions|
||||||se (%)||
||Amount|(%)|Amount|（%）|||
|Short-term loans|125,800.00|2.36%|125,000.00|2.71%|-0.35%||
|Long-term loans|127,000.00|2.38%|99,200.00|2.15%|0.23%||

3、Assets and liabilities measured by fair value
Please see Note nine in Financial Statements.
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 competencies for the future long-term development. During the reporting period, the company's core competitiveness improved further.
1. Independent innovation solid progress
The company successfully held the first technology carnival activity, published a number of latest security technology such as front airbag in back row; Changan RAETON refreshed China brand security collision scoring record with 56.2 points; the 2014 model of Changan EADO successfully passed the first rollover test of China automobile safety collision (North America standard);
Dianjiang skid pad of RMB1.3 billion yuan investment and 3-years construction was officially put into operation; the development
and industrial use of NVH(noise, vibration and acoustic vibration roughness) control technology won the first prize of Science and
Technology Award of China Automobile Industry; In 2013 in the state evaluation of enterprise technology centers, Changan won the
first prize of China auto industry, and ranks the first for three consecutive terms in the industry. Changan independent research and development made out the incremental upgrade way from "structure development" to "performance development", then to "quality development".
2. Rapidly increase of product market competence
The company successfully launched many self developed models such as RAETON, EADO, Zhishang XT, CS35, and the product success rate increase substantially. During the report period, the highest monthly sales of EADO was more than 10,000 set, CS35 9000 set, RAETON made breakthrough in official-car market; Zhishang XT, rated as the most beautiful double-box coupe, is harder to get. In 2014, the company will release a series of new products into the market, such as CS75, new Ben-ben, and Yuexiang V7. This fully shows that the structure adjustment and independent innovation achievements of Changan automobile appear in large number, and its market competence ascent rapidly.
3. Brand ability improves further
The company participated Shanghai international auto show with independent brand for the first time, and successfully released 5 new models such as CS95 concept car and Zhishang XT. As China's only OEM, the company reappeared in Frankfurt international motor show with six new models such as CS75, REATON and Zhishang XT, which attracted broad attention.
Through innovation brand communication, it greatly held activities such as going into community, campus, business circle, county, and brand activity such as Changan automobile science and technology experience camp, in order to enhance brand image. The 19th China brand value result was published, that Changan brand value rose to RMB38.202 billion yuan, and continued to rank top ten in Chinese enterprises.
Ⅵ、Analysis
of Investment
1、Equity Investment
（1）Situation of investments in external parties
The main investment during the reporting period was purchase of50% shares of CAPSA amounted to RMB 2.007 billion yuan.（2）Equity-holdings in financial enterprises
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Gain/loss|||
|||||Opening|||||||
|||Initial|Opening||Closing|Closing||in the|||
|||||equity|||Closing book||||
|Company|Company|investment|equity||equity|equity||reporting|Accounting|Equity|
|||||holding|||value (RMB||||
|name|variety|cost (RMB|Holdings||holdings|Holdings||period|title|source|
|||||ratio|||Yuan)||||
|||Yuan)|(share)||(share)|（%）||(RMB|||
|||||(%)|||||||
|||||||||Yuan)|||
||||||||||Tradable||
|Southwest|Securities|||||||||Initial|
|||50,000,000|17,750,000|0.76%|17,750,000|0.76%|176,257,500|1,775,000|financial||
|Securities|Firm|||||||||investment|
||||||||||assets||
||||||||||Tradable||
|||||||||||The 2011|
||||||||||financial||
|||||||||||merger of|
|Hua Xia|Commerci||||||||assets||
|||8,149,714|7,276,000|0.11%|9,458,800|0.08%|81,061,916|3,420,000||Changan|
|Bank|al bank||||||||Financial||
|||||||||||bus|
||||||||||assets for||
|||||||||||investment|
||||||||||trade||
|Financial||||||||23,413,20|Long term|Initial|
||Other|80,000,000||5.33%||5.33%|80,000,000||||
|Co. of||||||||3.42|equity|investment|

||||||
|-|-|-|-|-|
|China South||||investment|
|Industries|||||
|Group|||||
|Corporation|||||
||||28,608,20||
|Total|138,149,714|337,319,416|||
||||3.42||

（3）Securities investments
There’s no securities investment 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
（1）Overview of the use of raised funds
Unit: Ten Thousand Yuan
|||
|-|-|
|Total amount of raised funds|344,558.69|
|Total raised capital input in the reporting period|3,572.62|
|Accumulative raised capital input|348,188.81|
|Total raised capital of which the use was changed in the||
||0|
|reporting period||
|Accumulative raised capital of which the use was changed|0|
|Proportion of accumulative raised capital of which the use||
||0%|
|was changed （%）||
|Overview of the use of raised funds||
|The board of directors of the Company state that the Company had followed the Guidelines of Normative Operation of Listed||
|Companiesissued by Shenzhen Stock Exchange and relevant provisions, and disclosed the deposit and the actual use of the raised fund||
|timely, truely, accurately and completely, there’s no violation in raised funds management. The Company fulfiled the obligation of||
|disclosure of the investment and progress of the raised funds faithfully.||

（2）Projects
promised to be invested with raised funds
Unit: Ten Thousand Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Projects invested||Raised||Input in|Accumulative||Date when|Profit|Reach the|Material|
||Project||Investment||||||||
|with raised capital||capital||the|input up to|Investment|the project|generated|expected|change in|
||changed or||after||||||||
|as promised and||input as||reporting|the period|progress up|reaches|in the|profit or|the project|
||not||adjustment(1)||||||||
|investments with||promised||year|en d (2)|to the|the|reporting|not|feasibility|

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|over-raised capital||||||period-end|expected|period||or not|
|||||||(%)(3)＝|usable||||
|||||||(2)/(1)|condition||||
|Projects invested with raised capital as promised|||||||||||
|Capacity|||||||||||
|expanding project|||||||||no||
||no|164,319|164,319|1,164.35|165,715.30|100.00%|2012/1/31|8,163.09||no|
|of auto production|||||||||note2||
|lines|||||||||||
|Industry upgrade|||||||||||
|project of|||||||||no||
||no|197,911|197,911|2,408.27|182,473.52|92.20%|2012/6/30|57,158.70||no|
|small-displacement|||||||||note3||
|engine|||||||||||
|Subtotal of|||||||||||
|promised|||||||||||
||--|362,230|362,230|3,572.62|348,188.82|--|--|65,321.79|--|--|
|investment|||||||||||
|projects|||||||||||
|Investments of over-raised capital|||||||||||
|Total|--|3,572.62|348,188.82|--|--|66,316.54|3,572.62|65,321.79|--|--|
||Note 2: The Company had mentioned in the letter of intent for public issuance, after the completion of the||||||||||
||capacity expanding project of auto production lines, totally 220 thousand mini buses CM9,F202 and G401 can||||||||||
||by produced per year, annual sales income of RMB 11,314,220,000 Yuan can be realized, and the total profit will||||||||||
||be 339,760,000 RMB Yuan. In 2013, the Company has produced totally 161,796 units of F202 and G401,||||||||||
||operating income of6.0930 Billion RMB Yuan has been achieved, and profit of 0.2209 Billion RMB Yuan has||||||||||
|Reason for failing|been realized, the expected profit was not achieved maily due to the depression in traditional vehicle market and||||||||||
|to reach scheduled|tight maket compition, leading to the failure in reaching the expected the sales volume and price, which the||||||||||
|progress or|revenue can’t be reached.||||||||||
|projected income|Note 3； The Company had mentioned in the letter of intent for public issuance，after the completion of small||||||||||
|(explain one|displacement engine industry upgrade project，CC series engine can add annual comprehensive production||||||||||
|project by one|capacity of 120000 units, the new CB series engine comprehensive production capacity of 300000 units, can||||||||||
|project)|realize annual sales income 4034760000 RMB Yuan and a total profit of 262080000 yuan. In 2013, the Company||||||||||
||has produced 217,157 units of CC series engine and 154,870 units of CB series engine, totally operating income||||||||||
||of 3.50853 Billion Yuan and total profit of 0.42228 Billion Yuan have been achieved, the targets has been||||||||||
||achieved. Because the large engines will not be sold externally, so the income and total profit for large engines||||||||||
||will be calculated by simulating the market price which has been mentioned in the letter of intent for public||||||||||
||issuance, the project benefit will be finally reflected in the production and sale of the Company's vehicle.||||||||||
|Explanation on|||||||||||
|significant changes|||||||||||
||No such case during report period.||||||||||
|in feasibility of|||||||||||
|projects|||||||||||
|Amount, usage|||||||||||
|and usage|N/A||||||||||

|||
|-|-|
|progress of||
|over-raised||
|capital||
|Change of the||
|implementation||
|location of any||
||N/A|
|raised funds||
|investment project||
|Adjustment of the||
|implementation||
|method of any|N/A|
|raised funds||
|investment project||
||Yes|
||By January 31, 2011, the fund raised by the company itself to invest raised-fund project in advance was|
|Advance input and||
||608.7494 million yuan, validated by &young Huaming Accounting Firm which issued Ernst&Young Huaming|
|exchange of any||
||(2011) No. 60662431 _B01 special verification report. On 28 February 2011, the company’s 18th meeting of the|
|raised funds||
||fifth board of directors passed that, the company raises capital 608.7494 million yuan to replace self-raised funds|
|investment project||
||of projects which were invested raised fund in advance. The above-mentioned funds had been replaced by March|
||2011.|
|Idle raised capital||
|for temporarily|N/A|
|supplementing||
|working capital||
|Outstanding||
|raised funds in||
|project|N/A|
|implementation||
|and reasons||
|Use and||
|whereabouts of|The entire unused raised fund has been stored in company’s special account of raised fund.|
|unused raised fund||
|Problems or other||
|cases existing in||
||No such case during report period.|
|raised-fund use||
|and disclosure||

（3） The situation of raising funds to change the project
During the reporting period, the project to raise funds had not changed
4、(1) Analysis of main holding companies and equity companies
(1) 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(tenthousandyuan)|
|Hebei Changan AutomobileCo., Ltd.|46,469|94.07%|Produce and sell auto and parts|247,792|394,656|1,797|
|Nanjing Changan AutomobileCo., Ltd.|60,181|82.47%|Produce and sell auto and parts|151,187|240,898|-31,411|
||24,100 US DOL||||||
|Changan Ford Motor Co., Ltd|LAR|50%|Produce and sell auto and parts|3,735,380|8,416,604|821,782|
||11,096 USDOL||||||
|Changan Mazda Co., Ltd||50%|Produce and sell auto and parts|785,388|1,171,127|9,995|
||LAR||||||
|Changan Ford Mazda Engine|20,996 US||||||
|||50%|Produce and sell engine parts|312,464|356,668|24,387|
|Co., Ltd|DOLLAR||||||
|Chongqing Changan Suzuki|19,000 US||||||
|||51%|Produce and sell auto and parts|645,782|816,189|1,109|
|Automobile Co., Ltd|DOLLAR||||||
|JMC Holding Co., Ltd.|200,000|50%|Produce and sell auto and parts|629,371|205,690|52,690|
|Baoding Changan Bus|||||||
||3,000|100%|Produce and sell auto and parts|721,167|57,147|-79,759|
|Manufacture Co., Ltd.|||||||
|Chongqing Changan Auto.sales subsidiary companies|850|100%|Produce and sell auto and parts|143,488|233,716|15|
|Chongqing Changan Auto.International Sale ServiceCompany|1,376|95%|car export, import and exportagent|13,422|416,332|252|
|Chongqing Chang AutomobileSales Co.,Ltd.|4,850|100%|Produce and sell auto and parts|16,110|55,311|-2,471|
|Chongqing Changan Auto.Customer Service Co., Ltd.|3,000|99%|roduce and sell auto and parts|5,058|246|-18|
|Chongqing Changan NewEngergy Automobile Co., Ltd.|2,900|65%|NEV production and sales|30,693|79,627|1,272|
|Chongqing Changan SpecialAutomobile Sales Co., Ltd.|500|50%|Special vehicle and spare partssales, car maintenance|8,063|10,983|574|

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 2013|Net Asset at the end of 2012|Change situation（%）|
|Changan Ford Automobile Co., Ltd.|821,782|320,705|156.24%|
|JMC Holding Co., Ltd.|52,690|42,350|24.42%|
|Changan Ford Mazda Engine Co., Ltd|24,387|3,910|523.71%|
|Nanjing Changan Automobile Co., Ltd.|-31,411|-24,897|-26.14%|
|Changan Mazda Co., Ltd|9,995|3,494|186.06%|

5、Major projects with non-raised capital investment
Please refer to Notes to Financial Statement 15” Construction in progress”
Ⅶ、Predict of operating performance during January to March 2014
Warning and explanation for possible loss in predicted accumulated net profit from beginning of the year to the end of the next reporting period or huge fluctuate comparing to the last reporting period.
□ Available√ Not available
Predict of operating performance: sharp increase
Type of Predict of operating performance: period amount
||||
|-|-|-|
|Item|during the reporting period|during the last reportingperiod|
|Net profit attributable toowners|Increased ：237.19% - 273.64%|Profit：548,660 million|
||Profit：1,850–2,050 million||
|Basic EPS|Profit： about 0.40-0.44 Yuan|Profit：0.12 Yuan|
|Instruction|Detailed information refers to the “Predict of operating performance during January to March2014” (announcement No. 2014-21) published on China Securities News "," Securities Times"," Hongkong daily and http://www.cninfo.com.cn on April 12th 2014.||

Ⅷ、
Special purpose vehicle under the company control
The company does not have special purpose vehicle.
Ⅸ、The company's future development prospect
1. Industry competition pattern and trend of development
In 2014 in terms of economic situation, the central government firmly promotes reform, the state-owned enterprise reform will go
further, which will further stimulate growth vigor, meanwhile many new growth factors such as industrialization, urbanization and
consumption structure upgrade is forming, and the trend that economy is stable and will become betterwon’t change. In terms of
industry situation, rigid demand exists for long time, informatization, electrification and intellectualization are rapidly integrating into automobile industry, and bring new opportunities for automobile industry. But China's automobile industry also faces many challenges such as increasing competition, more restrict laws and regulations, and more purchase restriction.It’s expected in 2014 the growth rate of China auto market is8% -10%, sales about 24 million vehicles.
2.Company development strategy
Take the growth opportunity of China's auto market in the next decade, strengthen brand awareness, speed up brand construction; continuously remain China's leading independentr&d ability, and strive to make classic products; adhere to "walking on two legs", improve joint venture; adhere to Chinese market is the main body, steadily expand overseas markets; adhere to development and reform, continuously optimize the mechanism system; establish and perfect advanced system (including management, organization, human and culture), and ultimately realize rapid and healthy development.
3. Business plan
In 2014 the aim of the board of directors of the company is: strive to produce and sell more than RMB2.33 million cars, Sales revenue is over 180 Billion Yuan (including full revenue from joint venture) on statistic basis and approximately 40.9 Billion Yuan from consolidated financial statements. To achieve the above objectives, this year the company will be guided by career leading plan T13612, take "reform, brand, quality, system" as the key points, value creation as the core, constantly emancipate the mind, comprehensively deepen the reform, speed up the transformation and upgrading, greatly promote the platform which takes the products as the core and system construction which takes customers as the core, and focus on the following work: firstly focus on marketing, take good marketing battle; secondly reform quality management, and promote rapid promotion of product quality; thirdly strengthen system construction, vigorously promote strict management, improve management efficiency; fourthly innovate human resource management, activate full vigor; fifthly innovater&d mode, create classic products; sixthly strengthen financial management, reduce cost and improve efficiency, improve operation quality; seventhly innovate brand promotion, create international brand image; eighthly see clearly customer needs, innovative product planning; ninthly strengthen production and marketing synergy, lean manufacturing and logistics management; tenthly innovate supplier management, improve system competition ability; eleventh strengthen the implementation of JV cooperation strategy, improve development quality.
4. Company capital requirement and use plan of 2014
To realize corporate strategic objectives, the company capital expenditure is expected to be RMB3.78 billion yuan in 2014, the investment on fixed assets is RMB2.877 billion yuan, the equity investment is RMB903 million yuan. Investment in fixed assets is mainly in productivity construction, upgrade of production capacity and product adjustment, and research and development ability construction of Yuzui base, Beijing factory and YuBei factory, among which the extension project is RMB1.89 billion yuan, accounting for65.7%. Equityinvestment’s mainly that purchase100% equity funds of Hefei Changan and projects of overseas research and development and investment. 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. 5. Potential risks
China automobile industry development has had and is having very profound changes, in the next decade rigid demand of automobile remains strong, potential consumption is huge, the competition in China auto market will be more intensive and cruel. Main changes are as follows:
(1) Market capacity: the overall capacity is increasing, but not a simple linear growth, it will grow depending on the energy, regulations and economic elements.
(2) Policies and regulations: energy saving, environmental protection, safety, hygiene, restrictions of big cities, public procurement and other series of policies and regulations have large influence on future market.
(3) Consumer: Chinese consumers have gradient variation, the brand consciousness is stronger and stronger; Consumer rights
protection is diverse and intense; network greatly influencesconsumers’ judgment and consumption behavior.
(4) Competitive situation: more intense, crueler, new entrants of market segment will increase.
(5) Media: Internet and big data era has very profound changes on producers, consumers, marketers and suppliers.
Facing all the changes, the company must comply with the industry development trend, actively reform, seize opportunities, speed up transformation, upgrading and structural adjustment, in order to get competitive advantages.
Ⅹ、The
BOD explains for the accounting firm in this report period "non-standard audit report" Non-applicable
Ⅺ、Compared
with the annual financial report, Note accounting policies, accounting estimates and accounting methods to change the situation
In recent years, the volume of production and sales keeps scaling up. Considering theGroup’sproduction’s characteristics, quality assurance period and obligation of warranty clues, the Group changed the extraction method of warranty to keep the balance of warranty as a certain multiples of the average month warranty payment among the last 12 months to state the balance of warranty more reasonably.
The accounting estimation change for warranty was applicable from January 1st, 2013, and the other regulation for warranty remains the same. Prospective application was adopted for the estimation change, which the retroactive adjustment was not proposed for previous years, thus no effect was posed on disclosed financial report. The accounting estimation change led to a decrease of the net profit attributable to owners by RMB 174,109,934.58 during 2013.Ⅻ、Corrections
to the retrospective restatement situation shows significant accounting errors occurring in the report period
Non-applicable
13、Explanations
to those changes in the scope of consolidated financial statements compared with the last annual financial report
Non-applicable
14、
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. The revised articles has been completed on the sixth session of the third BOD and the 2012 third provisional shareholders session .
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 2011 annual profit distribution plan is : Based on the existing total share capital of 4662886108 shares as the base, to all shareholders 10 per share cash delivery 0.40 yuan, total cash delivery 186515444.32 yuan (including tax)
The 2012 annual profit distribution plan is: Based on the existing total share capital of 4662886108 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 4662886108 shares as the base, to all shareholders 10 per share cash delivery 1 yuan (including tax)
Company cash dividends in the past three years table. unit:Yuan
|||||
|-|-|-|-|
|||The annual consolidated||
||||Ratio of consolidated|
|||statements profit||
||The cash dividend amount||statements attributable to|
|The annual dividend||attributable to||
||(including tax)||shareholders of the listing|
|||shareholders of the listing||
||||Corporation's net profi（t %）|
|||Corporation's net profit||
|2013|466,288,610.80|3,505,640,520.04|13.30%|
|2012|233,144,305.40|1,446,409,591.28|16.12%|
|2011|186,515,444.00|967,940,639.48|19.27%|

15、Social
responsibility
The 2013 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
Chapter 5 Important Matters
一、There are no major litigations , arbitrations, and media questioned during the reporting year.
二、During
the reporting period, no occurrence of the controlling shareholder and its related parties not occupy the funds of the company
三、No
occurrence of bankruptcy and reorganization matters during the reporting period
四、Asset
transactions
1、Acquisition of assets
|||||||||
|-|-|-|-|-|-|-|-|
|The||||||||
|||The||||||
|dealing||||Whether||||
||Acquired|transacti|||Relationship and|||
|party or||||the||||
||by or|on price|||counterparty (for|The date of||
|the|||status|related|||Disclosure index|
||into|(ten|||related party|disclosure||
|ultimate||||transacti||||
||assets|thousand|||transactions situation|||
|controlli||||ons||||
|||)||||||
|ng party||||||||
||||The company has|||||
||||completed the acqu|||||
||||||||The detail information is|
||||isition of CAPSA5|||||
||||||||on “China Securities|
||Changan||0% equity matters|||||
||||||||News "," Securities Times|
||Peugeot||of national Ministr|||||
||||||||"," Hongkong daily and|
||Citroen||y of Commerce an|||||
||||||||"www.cninfo.com.cn|
|China|Automob||d other government|||||
||||||||concerning acquisition|
|Changan|ile||departments|||||
||||||||of Changan Peugeot|
|automobi|Limited|200,784|for examination and|Yes|majority shareholder|28st , Dec,2013||
||||||||Citroen Automobile|
|le group|company||approval|||||
||||||||Limited company 50%|
|Co.Ltd|50%||procedures，and|||||
||||||||stockholder's rights|
||stockhol||Dec,2013 complete|||||
||||||||special connected|
||der's||all the equity|||||
||||||||transaction|
||rights||transfer payment and|||||
||||||||announcement" (Bulletin|
||||delivery options|||||
||||||||No. 2012-52)|
||||business registration|||||
||||formalities.|||||

2、sales of assets
No
3、Enterprise merger
This year the scope of consolidated financial statements and the annual agreement
五、The
implementation and the effect of corporate equity incentive
Not applicable
六、
Significant related party transactions
1、Related party transactions related to daily operation
For the detail, see China Securities News "," Securities Times "," Hongkong daily and http://www.cninfo.com.cn concerned "Chongqing Changan automobile Limited by Share Ltd connected transaction announcement"
2、Asset acquisition, sale transaction
The content in December 28, 2013 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 Changan Peugeot Citroen Automobile Limited company50% equity transactions associated with progress announcement" (Bulletin No. 2013-52).
3、Joint investment of significant related party transactions
No
4、Related credits and liabilities
The existence of non-operating related credits and liabilities
□Yes√ No
5、Other significant related party transactions
Web Query disclose interim report 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|||
||2013.04.02|http://www.cninfo.com.cn|
|company's related party transactions notice|||
|Chongqing Changan automobile Co. Ltd and Hafei Automobile Co. Ltd|||
||2013.04.02|http://www.cninfo.com.cn|
|connected transaction announcement.|||
|egarding the development of trade finance transactions associated with the|||
||2013.4.18|http://www.cninfo.com.cn|
|announcement of Fortis|||
|Concerning 2013 increase of daily related transactions amount notice.|2013.11.15|http://www.cninfo.com.cn|
|Concerning signed with Harbin Dongan Automotive Engine Manufacturi|||
|ng Co., Ltd.D series powertrain assembly, Contracts for licensing of te|2013.11.15|http://www.cninfo.com.cn|
|chnology and technical service support contract transactions notice|||

七、Significant
contract and its implementation
1、Trusteeship, contracting, leasing items
（1）Trusteeship
Explain
During report period, the company has not significant trusteeship, no previous period but continued to the significant trusteeship report period.
Bring profit to the company profit in the report period of more than10% of the total project
□Applicable√non-applicable
（2）Contract
Explanation
During report period, the company has not a major contract, no previous period but continued to the major contracting in the report period.
Bring profit to the company profit in the report period of more than10% of the total project
□Applicable√non-applicable
（3）Leasing
Explain
During the reporting period, the company did not produce significant leasing matters, no previous period but continued to the major lease transactions during the report period.
Bring profit to the company profit in the report period of more than10% of the total project
□Applicable√non-applicable
2、Guarantee situation
During the reporting period, the company has not guarantee matters.
3、Other important contracts
No
八、Commitments
fulfillment condition
The company or the shareholders holding5% or more shareholders during the reporting period or lasting to the report period commitments
|||||
|-|-|-|-|
|Commitment Item|Promisee|Promise content|Performance|
|||1.Will abide by the laws, regulations and rules, to|By the end of reporting term,|
|||perform the legal obligations.2. Held by the original|Limited conditions of the sale of|
|||non-tradable shares from obtaining the right to list and|shares of the company held by the|
|The commitments of||trade date, At least 24 months is not publicly traded or|shareholders of China Changan|
||China Changan|||
|stock reform||transferred, The 24 months after the expiration of the|1,913,557,480shares, The|
|||term of, Non-tradable shareholders stock exchange|1,540,199,138conditions for the|
|||through the sale of shares, The sale of shares of the|unlimited sale of shares, The|
|||company accounted for the proportion of the total|remaining 373,358,342 shares for|

|||||
|-|-|-|-|
|||number of within 12 months and not more than five|the limited conditions of the sale of|
|||percent, In 24 months of no more than ten percent,3.|shares, According to the|
|||Company in the shares changed after the completion|commitments to the management|
|||of According to the national related management|equity incentive plan implemented|
|||systems and methods for implementing the|after the lifting of restrictions on sale|
|||management equity incentive plan||
||||On 28TH ,Oct,2013, The controlling|
|||。n order to avoid and eventually solve the possible|shareholders China Changan have|
|||competition or potential competitors, Better maintain|transfer tthe Jiangxi Changhe Auto.|
|||the interests of investors, the company controlling|Co. Ltd to Jiangxi provincial|
|||shareholder China Changan commitment:1 In two|state owned enterprise assets. China|
|||consecutive years profit of Jiangxi Changhe|Changan proposed Jiangxi Changhe|
|Other small||Auto.CO.Ltd and Harbin Hf Automobile Industry|Automobile Co. Ltd. injected|
|shareholders|China Changan|Group Co, With the continuous development ability|commitment matters of the company|
|commitment||and management level is improved significantly under|have been removed. The Harbin Hf|
|||the condition of, Proposed that two enterprises into the|Automobile Industry Group Co at|
|||company,2. ]In Changan Peugeot Citroen Automobile|present is still running at a loss, The|
|||Company Limited built and put into operation,|conditions have not yet reached the|
|||Proposal will hold its joint venture company equity in|profitable for two consecutive years.|
|||all transferred to the company.|Changan Peugeot Citroen equity|
||||injection has been completed.|
||||In 2013, Changan Peugeot Citroen|
|||If the Changan Peugeot Citroen in 2013 for li||
||||for the company contribution to|
|||sting Corporation contribution to investment incom||
|Other small|||investment income of RMB -5058|
|||e lower than -12500.,(ten thousand Yuan),||
|shareholders|China Changan||ten thousand yuan, Not less than|
|||2014 investment listing Corporation contributions earn||
|commitment|||Chinese Changan promised lowest|
|||less than -17500 (ten thousand Yuan), China Changan||
||||return on investment of -12500 ten|
|||promised to make up the difference in cash.||
||||thousand yuan.|

九、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||
||350|
|thousand Yuan)||
|A continuous years of domestic accounting||
||6|
|firms audit service||
|Domestic accounting firm of Certified||
||Qiao Chun, Ai Wei|
|Public Accountants name||

Whether the accounting firms to hire
□ Yes√ non-available
Employ audit of internal control accounting firms, financial adviser or sponsor
√ Yes□on-available
The company in 2012 provisional shareholders' session, the company hiredErnst&Young Hua
Mingaccounting firm appointed as auditor of internal controls of the company's 2013 annual.
十、Punishment
and rectification
During report period, Company , BOD and Directors are not punished, criticismed by the China Securities Regulatory Commission, China Securities Regulatory Commission inspection of administrative , publicly condemned by the stock exchange
Directors, supervisors, and senior management personnel, holding5% or more shareholders alleged irregularities in the sale of shares and the company has disclosed will recover the suspected illegal proceeds.□Available√ Non available
Chapter 6 Changes in the shareholding of the company and shareholders
一、Change in shareholdings
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Balance before current|||||||||
||||Addition and deduction（+，-） during change|||||after current change||
||change|||||||||
||||||Provid|||||
||||Additi|||||||
|||||Stock|ent|||||
||||onal|||Stock||||
||Quantity|Ratio(%)||divid|fund||Total|Quantity|Ratio(%)|
||||issue|||dividend.||||
|||||end.|transfe|||||
||||d|||||||
||||||r.|||||
|一、Non-circulated||||||||||
||373,375,587|8.01%||||||373,375,587|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%||||||17,245|0%|
|personnel shares||||||||||
|二、Circulated shares|4,289,510,521|91.99%||||||4,289,510,521|91.99%|
|1、Domestic listed||||||||||
||3,387,524,379|72.65%||||||3,387,524,379|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
二、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||
|股票类 Share type|||||||
|A share|2011.1.11|9.74|360,166,022|2011.01.28|360,166,022||
|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
(1) the issuance of A shares
Approved by the China Securities Regulatory Commission CSRC approval No.[2010]1819., on January 11, 2011, the company to the public issuance of 360166022 shares of A shares, issue price of 9.74 yuan / share. on January 28, 2011, public offering of A shares listed on the Shenzhen stock exchange
(2) distribution 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号）, 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%
三、Shareholders and actual controllers situation
1、The number of shareholders of the company and the stock
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Ttotaled104,567, of||||||Ttotaled129,679, of|||
|During the report period, the total|which88,371 was A share||Fifth trading days before the end of the disclosure of the||||which113,046 was A share|||
|number of shareholders|shareholders and16,196 were B||annual report of the total number of shareholders||||shareholders and16,633 were|||
||share shareholders.||||||B share 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|41.04%|1,913,557,480|-181,260,000|373,358,342|1,540,199,138||||
||||||||||0|
|VALUE PARTNERS CLASSIC|foreign legal|1.42%|66,295,691|||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|FUND|person shares||||||||
|ZhongHui Fortis Investment Co.,Ltd|foreign legalperson shares|1.39%|65,029,258||-17,820,653||||
|||||||||0|
|Agricultural Bank of China—Bankof Communications Schroedergrowth stock securites investmentfund|domesticnon-state legalperson shares|0.97%|45,387,523||||||
|National Social Security Fund-Portfolio 102|domesticnon-state legalperson shares|0.9%|42,014,767||||||
|Boshi value growth securitesinvestment fund|domesticnon-state legalperson shares|0.88%|41,218,263||||||
|HSBC GLOBAL INVESTMENTFUNDS - CHINESE EQUITY|foreign legalperson shares|0.86%|39,928,228||||||
|China Life Insurance LimitedDividends dividends - Personal|domesticnon-state legalperson shares|0.83%|38,486,106||11,103,444||||
|||||||||0|
|HTHK-MANULIFE CHINAVALUE FUND|foreign legalperson shares|0.81%|37,963,732||||||
|Construction Bank China - Chineseadvantage growth stock typesecurities investment fund|domesticnon-state legalperson shares|0.79%|36,746,059||||||
|||Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the controlling|||||||
|Explanation on the relationship and the action alike of||shareholder, and its wholly owned subsidiary Zhonghui Futong Investment Co., Ltd. belong to the|||||||
|above shareholders||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||
|Type and amount of shares||||1,540,199,138||RMB ordinary shares|1,540,199,138||
|VALUE PARTNERS CLASSIC FUND||||66,295,691||Domestic listed|||
||||||||66,295,691||
|||||||foreign shares|||
|ZhongHui Fortis Investment Co., Ltd||||65,029,258||Domestic listed|||
||||||||65,029,258||
|||||||foreign shares|||
|Agricultural Bank of China—Bank of Communications Schroeder growthstock securites investment fund||||45,387,523|||||
|||||||RMB ordinary shares|45,387,523||
|National Social Security Fund- Portfolio 102||||42,014,767||RMB ordinary shares|42,014,767||

|||||
|-|-|-|-|
|Boshi value growth securites investment fund|41,218,263|RMB ordinary shares|41,218,263|
|HSBC GLOBAL INVESTMENT FUNDS - CHINESE EQUITY|39,928,228|Domestic listed||
||||39,928,228|
|||foreign shares||
|China Life Insurance Limited Dividends dividends - Personal|38,486,106|RMB ordinary shares|38,486,106|
|HTHK-MANULIFE CHINA VALUE FUND|37,963,732|Domestic listed||
||||37,963,732|
|||foreign shares||
|Construction Bank China - Chinese advantage growth stock typesecurities investment fund|36,746,059|||
|||RMB ordinary shares|36,746,059|
||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 subsidiary Zhonghui Futong|||
|relationship between shareholders and top 10 shareholders or concerted||||
||Investment Co., Ltd. belong to the concerted actor regulated by “Disclosure|||
|action||||
||Administration of Shares Change Information of The Listed Company”.|||

2、The controlling shareholder of the company.
|||||||
|-|-|-|-|-|-|
||Legal|Date of||||
||||Organization|Registered||
|Name|/Represent|establishme|||Business scope and major products:|
||||code|capita||
||ative|nt||||
||||||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 CHANGAN|||||products, night-time vision device,|
|||Dec 26th,||||
|AUTOMOBILE GROUP|Xu Liuping||71093394-8|4,582,373,700|information and communication|
|||2005||||
|CO., LTD.|||||equipment; technical development,|
||||||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.|

During the report period the change of controlling shareholders
□Available√ Non available
3、The controlling shareholder of the Company
|||||||
|-|-|-|-|-|-|
||Legal|Date of||||
||||Organization|Registered|Business scope and major|
|Name|/Represent|establishme||||
||||code|capita|products:|
||ative|nt||||

|||||||
|-|-|-|-|-|-|
||||||investment and management of|
||||||state-owned assets; manufacturing of|
|||South||||
|China South Industries|||||guns and firearms; engineering|
||Tang Dengjie|Industries|71092492-9|12,645,210,000||
|Group Corp.|||||prospecting, designing, construction,|
|||Group Corp.||||
||||||contracting, construction supervision;|
||||||equipment installation, etc|

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%
Zhonghui Futong Investment Co., Ltd.
41.04%
1.39%
Chongqing Changan Automobile Co.,
L d
Actual control people control the company through trust or other asset management method.
□ applied√ not applied
Chapter 7 Information about Directors, Supervisors, Senior Management and Employees
一、Share ownership changes of directors, supervisors and senior management
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||increased|decreased|share|
||||||||Shares||||
|||||||||share|share|number|
|||As||||Term Termination|held at||||
|Name|Position||G|Age|Term start date|||number in|number in|at the|
|||state||||date|beginnin||||
|||||||||this issue|this issue|end|
||||||||g（stock）||||
|||||||||（stock）|（stock）|（stock）|
|Xu Liuping|Chairman|present|M|49|2012.5.24|2015.5.24|||||
|Zhang|Director,|present|M||2012.5.24|2015.5.24|||||
|||||51|||||||
|Baolin|president||||||||||
|Zou||present|M||2012.5.24|2015.5.24|||||
|||||50|||||||
|Wenchao|Director||||||||||
||Director,|present|M||2012.5.24|2015.5.24|||||
||secretary of the||||||||||
|Zhu|||||||||||
||party|||48|||||||
|Huarong|||||||||||
||committee,||||||||||
||vice President||||||||||
|Lian Gang|Director|present|M|53|2012.5.24|2015.5.24|||||
|Wang Kun|Director|present|M|38|2012.5.24|2015.5.24|||||
||Director, vice|present|M||2012.5.24|2015.5.24|||||
|Ma Jun||||54|||||||
||president||||||||||
||Directors, vice|present|M||2012.5.24|2015.5.24|||||
|Cui|president,||||||||||
|||||50|||||||
|Yunjiang|secretary of the||||||||||
||board||||||||||
|Ma Junpo|director|present|M|47|2012.5.24|2015.5.24|||||
|Ouyang|independent|present|M||2012.5.24|2015.5.24|||||
|||||55|||||||
|Minggao|director||||||||||
||independent|present|M||2012.5.24|2015.5.24|||||
|||||57|||||||
|Dong Yang|director||||||||||
|||present|M||2012.5.24|2015.5.24|||||
|Chen|independent||||||||||
|||||57|||||||
|Zhong|director||||||||||
|Wang|independent|present|M||2012.5.24|2015.5.24|||||
|||||55|||||||
|Zhixiong|director||||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Peng|independent|present|M||2012.5.24|2015.5.24|||
|||||49|||||
|Shaobing|director||||||||
||Chairman of|present|M||2012.5.24|2015.5.24|||
|Yang Jian|the supervisory|||49|||||
||board||||||||
|Cai Yong|Supervisor|present|M|40|2012.5.24|2015.5.24|||
|Xie||present|M||||||
||Supervisor|||43|2013.5.21|2015.5.24|||
|Shikang|||||||||
|Liang||present|M||2012.5.24|2015.5.24|||
|Guangzhon|Supervisor|||41|||||
|g|||||||||
|Liu Hong|Supervisor|present|M|44|2012.5.24|2015.5.24|||
|Fan||present|||2013.4.12|2015.5.24|||
||Supervisor||M|45|||||
|Chaodong|||||||||
|Wang||present|||2012.5.24|2015.5.24|||
||Supervisor||F|43|||||
|Lijun|||||||||
|Huang||present|M||2012.5.24|2015.5.24|||
|Zhongqian|Vice president|||45|||||
|g|||||||||
|Ren Qiang|Vice president|present|M|53|2012.5.24|2015.5.24|5,749|5,749|
|Luo||present|M||2012.5.24|2015.5.24|||
||Vice president|||50|||||
|Minggang|||||||||
|Du Yi|Vice president|present|M|46|2012.5.24|2015.5.24|||
|Gong Bing|Vice president|present|M|44|2012.5.24|2015.5.24|||
|Wang Jun|Vice president|present|M|41|2012.5.24|2015.5.24|||
|Liu Bo|Vice president|present|M|47|2012.5.24|2015.5.24|||
|He||present|M||||||
||Vice president|||46|2014.1.29|2015.5.24|||
|Chaobing|||||||||
||Secretary of|present|||2012.5.24|2015.5.24|||
|Li Jun|||F|44|||||
||the board||||||||
|Yuan||departu|M||2012.5.24|2013.4.11|||
||Supervisor|||45|||||
|Xueming|||||||||
|Chen||departu|||2012.5.24|2013.4.11|||
||Supervisor||F|44|||||
|Lingtao|||||||||
|Song Jia|Vice president|departu|M|48|2012.5.24|2013.9.30|||
|Wang|Director, vice|departu|M||2012.5.24|2014.1.28|||
|Chongshen|secretary of the|||55|||17,246|17,246|
|g|party||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||committee,||||||||||
||vice President||||||||||
||Directors, vice|departu|M||2012.5.24|2014.3.31|||||
|Cui|president,|re|||||||||
|||||50|||||||
|Yunjiang|secretary of the||||||||||
||board||||||||||
|Total|--|--|--|--|--|--|22,995|0|0|22,995|

二、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, Director and the President, 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, Director of China Changan Automobile Co, Ltd. 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.
Mr. Zou Wenchao, Director, born in 1963.He has aMaster’s Degree in Engineering, is a senior engineer. Now he is one of the directors and president of China Changan Automobile Co., Ltd., he used to serve as Vice Director of Workshop No.22 and Vice Director of Vehicle Development Institute in Jiangling Machinery Factory, Vice Director of Planning Department of Automobile Bureau in China South Industries Company, Section Chief and Vice Director of Planning Department, Assistant to the President, Vice President of Changan Automobile (Group) Co., Ltd., the exective vice president of Changan Ford Mazda Automobile Co. Mr. Zhu Huarong, Director, CPC Secretary, He was born in 1965, master graduate student, researcher-level senior engineer. Currently he is vice secretary of party committee of China Changan Automobile Group. 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.
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. Wang Kun, Director, born in 1975,bachelor’s degree, senior accountant. Now he is the Director and Chief Accountant of
China Changan Automobile Group Co, Ltd. He used to be the director of Capital operation (Administratiion division) under Capital
operation Department of China South Industries Group, Vice Director of Capital operation Department.
Mr. Ma Jun, director and vice president, born in 1959. He has obtainedmaster’s degree in engineering and is a senior engineer. He used to be Vice Head of the Technical Department of Changan Machinery Factory, Head of the Technical Department Two, Head of the Standardized Information Department, Vice Director of the General Administration Office, Assistant to President, Director of the General Administration Office, Deputy Director and Director of the Information Center of CHANGAN AUTOMOBILE (GROUP) CO., LTD., Director of the Information Center and the vice president of CHANGAN AUTOMOBILE (GROUP) CO., LTD.
Mr. Cui Yunjiang, Director, Vice President, Board Secretary and Chief of Finance Department, was born in 1963. He has obtainedmaster’s degree and is a senior accountant. He used to be Vice Director of the Finance Department of Changan Machinery Factory, Director of the Finance Department of Changan Suzuki Automobile Company, Director of the Securities Department, and Vice Director, Director of Finance Department of the Company, Chief accountant of 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. Ren Qiang, Vice President, Deputy Secretary of the Party committee, Secretary of the Discipline Inspection Commission, trade union chairman, directorcandidate，was born in 1960. He has aMaster’s Degree in Engineering, is a senior research-level engineer. He used to serve as Vice Secretary of the Youth League Committee of the No.2 Textile Machinery Plant at Shaoyang City, Hunan Province, Vice Chief of Non-standard Product Design Office and Vice Director of General Design Institute of Changan Machinery Plant, Vice Director of Construction Institute, Vice Director and Director of Development Planning Department of CHANGAN AUTOMOBILE (GROUP) CO., LTD., and Assistant to President of CHANGAN AUTOMOBILE (GROUP) CO., LTD., General Manager of Changan Jinling Parts Company, and Vice President of CHANGAN AUTOMOBILE (GROUP) CO., LTD., excutive Vice President of Jiangling Holding Co.
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 Auto motive 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 C o.Ltd, President assistant and director of purchase department, President assistant and vice general manager of the commer cial vehicle division
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||||
|Zou||||||
||China Changan|director, president|||Y|
|Wenchao||||||
|Zhang|China Changan|||||
|||director|||N|
|Baolin||||||
||China Changan|vice secretary of party||||
|Zhu Huarong|||||N|
|||committee||||
||China Changan|vice secretary of party|||Y|
|Yang Jian||||||
|||committee||||
|Lian Gang|China Changan|vice president|||Y|
|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|
|Peng Shaobing|Accounting College of|Secretary of general Party|||Y|

||||
|-|-|-|
||Southwest University of|branch|
||Finance and Economics||
|Position in|This table only shows the main office performance and position in of independent directors.||
|other work unit|||

三、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 RMB12.654million 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|Director and president|M|51|present|868,667.74|
|Zhu Huarong|Director and vice president|M|48|present|827,415.54|
|Ma Jun|Director and vice president|M|54|present|723,032.25|
|Ouyang Minggao|independent director|M|55|present|60,000.00|
|Dong Yang|independent director|M|57|present|60,000.00|
|Chen Zhong|independent director|M|57|present|60,000.00|

|||||||
|-|-|-|-|-|-|
|Wang Zhixiong|independent director|M|55|present|60,000.00|
|Peng Shaobing|independent director|M|49|present|60,000.00|
|Cai Yong|Supervisor|M|40|present|342,630.00|
|Xie Shikang|Supervisor|M|43|present|291,546.00|
|Liang Guangzhong|Supervisor|M|41|present|289,296.00|
|Liu Hong|Supervisor|M|44|present|248,832.00|
|Fan Chaodong|Supervisor|M|45|present|235,818.00|
|Wang Lijun|Supervisor|F|43|present|295,109.00|
|Huang Zhongqiang|Vice president|M|45|present|711,101.25|
|Ren Qiang|Vice president|M|53|present|715,140.00|
|Luo Minggang|Vice president|M|50|present|856,675.90|
|Du Yi|Vice president|M|46|present|651,280.00|
|Gong Bing|Vice president|M|44|present|744,641.35|
|Wang Jun|Vice president|M|41|present|614,740.00|
|Liu Bo|Vice president|M|47|present|634,500.00|
|He Chaobing|Vice president|M|46|present|475,209.00|
|Li Jun|secretary of the board|F|44|present|231,960.00|
||leave the supervisor post|||departure||
|Yuan Xueming||M|45||333,952.00|
||during the report period|||||
||leave the supervisor post|||departure||
|Chen Lingtao||F|44||280,478.00|
||during the report period|||||
|Song Jia|leave the Vice president|M|48|departure|519,790.00|
||leave the director, vice|||||
|Wang Chongsheng|President post during the|M|55|departure|729,289.60|
||report period|||||
||leave the Director and vice|||||
|Cui Yunjiang|president, secretary of the|M|50|departure|733,031.25|
||board|||||
|In Total|--|--|--|--|12,654,134.88|

 The authorized equity incentive of the directors, supervisors and senior managers during the reporting period
□ applied√ not applied
四、Resignation and dismissal of company directors, supervisors and senior managers
During report term ,due to job changes Ms.Chen Lingtao resigned from the company supervisor, and the employee representative congress elected Mr. Fan Chaodong as the company supervisor;
Mr. Yuan Mingxue r resigned from the company supervisor, the 2012 shareholder meeting selected
Mr. Xie Shikang as the supervisor, which need be approved by the company's 2012 shareholders
meeting. Mr. Song Jia no longer hold the vice president of the company because of job transfers. After items: Mr. Wang Chongsheng by reason of age no longer act as directors, vice president. On sixth meeting of the fifteenth board of directors appointed Mr He Chaobing as vice president of the company, The election of Mr. Ren Qiang as the board of directors of the company.
五、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.
六、The Employees of the Company
By the end of this year, total headcount of the Company was 30,877,including 17,114 production workers, 1,615salesmen, 7,023 engineers, 494 finance staff, 1,667 administrative staff, and 2,964 others. Among the total, there were 45 with doctorate degree, 1,174 with master degree 9,388 with bachelor degree, 5,623 with college education, )5,096 with vocational school graduate(including secondary technical school), 8,245 with senior high school education(including vocational high school), and 1,306 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
3,263
retired workers.
Chapter 8 Corporate Governance
一、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.
During the reporting period, company to strengthen the system construction, develop "non routine business hierarchical authorization management approach", "revision of the related transaction management system" and "articles of association", refine the classification of major matters of non daily operating authorization mechanism, make the company management further standardization, scientific, procedure.
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
Fifth meeting of the ninth 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.
二、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 2012 board of directors；2、Work||||
|||report of 2012 board of supervisors；3、2012annual||||
|||report and summary；4、2012annual final finance||||
|||budget and 2013 annual finance budget statement；||||
|2012||||||
|||5、2012annual profit distribution bill；6、Proposal|All the||http://www.cninfo.com|
|annual|May 21,|||May 22,||
|||on approving 2013 expected daily related|proposals have||.cn/finalpage/2013-05-|
|shareholde|2013|||2013||
|||transactions；7, "on the renewal of technology|been passed||22/62513175.PDF|
|rs meeting||||||
|||licensing, and Hafei Automobile production||||
|||cooperation framework agreement", "a 8 bill and||||
|||ordnance equipment group finance company signed||||
|||a" financial service agreement "motion" 9, "about||||

|||
|-|-|
|2013 of the annual investment plan bill"|tltt|
|10、Proposal on 2013 financing plan；11, "about the||
|appointment of 2013 annual financial report audi||
|bill" 12, "about the appointment 2013 annua||
|internal control report", "13 auditor motion abou||
|the election of supervisors" 14, "a bill" non routine||
|business classification authority managemen||
|approach "bill"15.Proposal on amendment to the||
|articles of association||

2、Temporary shareholders' meeting during the reporting period
|||||||
|-|-|-|-|-|-|
|Meeting||||Disclosure||
||Date|Names of meeting proposal|Resolution||Disclosure Index|
|session||||date||
|The first||||||
|||"About Harbin and Dongan Automotive Engine||||
|extraordinary|||All the||http://www.cninfo.com|
|||Manufacturing Company Limited signed a series of||||
|shareholders'|2013.12.5||proposals have|2013.12.6|.cn/finalpage/2013-12-|
|||D powertrain technology licensing contracts and||||
|meeting of|||been passed.||06/63342853.PDF|
|||technical service contracts bill"||||
|2013||||||

三、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|7|0|6|1|0|N|
|Dong Yang|7|1|6|0|0|N|
|Chen Zhong|7|1|6|0|0|N|
|Wang Zhixiong|7|1|6|0|0|N|
|Peng Shaobing|7|1|6|0|0|N|

 2.Independent director raise an objection to company related matters.
In the report period independent directorshaven’t raised objection to company related matters.
四、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 4 meetings, perform the following duties:
①Carefully review the preparation of the company's management 2012 annual financial accounting report and audit supervision department in 2013 action plan, as well as the Secretary of the audit committee matters change, agreed to the above matters;②The Ernst& Young Hua Ming issued 2012 annual audit report, the audit committee reviewed the 2012 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 2012 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 2013 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 2013 annual external auditors;
③The meeting reviewed about the first half of 2013 to raise funds usage reports, that the company to raise funds to manage the three party supervision agreement be effectively implemented, the company raised funds there is no violation;
④The review of the company's 2013 annual audit plans and related information, to the Ernst& Young Hua Ming of the company 2013 annual financial report of the audit plan and audit requirements.
五、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
六、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 financial.
七、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 and Changan Peugeot Citroen Automobile co., LTD. (hereinafter referred to as CAPSA), the subordinate joint
venture of the controlling shareholder China Changan Automobile Group Co., Ltd. (hereinafter referred to "China Changan") have potential competition. Sixth meeting of the seventh board of directors and in 2012 fourth provisional shareholders meeting to consider the adoption of a takeover of Changan automobile group "China Limited by Share Ltd owns the Changan Peugeot Citroen Automobile Limited company50% stockholder's rights bill", the company agreed to with self raised funds in the acquisition of Changan holds50% stake in CAPSA company. To December 13, 2013, equity acquisition work has been completed, completely solved due to CAPSA company built and put into operation brings, and between controlling shareholders China Changan competition issues.
七、The appraisal and incentive situation of senior management
㈠Evaluation 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.
㈡Incentive mechanism
Income of senior management is composed of basic salary and performance salary. Performance salary links up with performance appraisal.
㈢Constraint mechanism
Company and senior management sign "employment contract", which has corresponding constraints on behavior, rights, duties, etc of senior management.
Chapter 9 Internal Control
一、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 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.
二、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.
三、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.
四、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||
||2014.4.17|
|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|2014 on Tide Information Net (http://www.cninfo.com.cn）|

五、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|2014.4.17|
||The audit report of internal control was published on Apr. 17 of|
|Disclosure index of the audit report of internal control||
||2013 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
六、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 (2014) No60662431_D03 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 2013, 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
Ernst& Young Hua Ming Shen Zi (2014) No60662431_D03 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 2013, 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 2014
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2013
(Expressed in Renminbi Yuan)
Notes V 2013 2012 Current assets
Cash 1 4,281,715,600.23 4,199,763,915.82 Financial assets held for trading 2 ‐ 332,407.00 Notes receivable 3 11,272,212,347.84 9,364,340,972.00 Accounts receivable 4 380,017,320.86 438,384,320.58 Prepayments 5 698,725,451.66 499,042,641.69 Dividends receivable 6 ‐ 450,030.00 Other receivables 7 208,009,273.35 133,863,189.40 Inventories 8 4,728,582,349.44 4,911,029,980.66 Other current assets 9 2,585,737.57 4,774,719.12 Total current assets 21,571,848,080.95 19,551,982,176.27Non‐current assets
Available‐for‐sale financial assets 10 257,319,416.00 233,814,100.00Long‐term equity investments 12 12,466,481,788.64 7,594,311,455.02 Investment property 13 1,006,267.37 1,081,565.51 Fixed assets 14 13,740,763,376.25 11,627,068,108.78 Construction in progress 15 1,328,773,757.05 2,805,328,886.06 Project materials 16 96,690.75 795,898.75 Fixed assets disposal 8,696.53 2,485,714.76 Intangible assets 17 2,058,742,291.62 2,133,154,677.81 Development expenditure 18 685,666,604.48 373,059,730.66 Goodwill 19 9,804,394.00 9,804,394.00Long‐term deferred expenses 20 1,410,228.76 2,055,164.45 Deferred tax assets 21 998,435,801.99 859,267,186.20 Othernon‐current assets 23 244,336,881.52 923,395,734.00 Totalnon‐current assets 31,792,846,194.96 26,565,622,616.00 TOTAL ASSETS 53,364,694,275.91 46,117,604,792.27
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2013
(Expressed in Renminbi Yuan)
Notes V 2013 2012 Current liabilities
Short‐term loans 24 1,258,000,000.00 1,250,000,000.00 Notes payable 25 9,388,781,959.80 7,808,998,092.99 Accounts payable 26 7,671,845,704.87 7,201,763,448.59 Advances from customers 27 4,258,001,533.60 4,251,355,201.70 Payroll payable 28 790,299,118.95 427,915,773.96 Taxes payable 29 131,096,474.84 49,882,326.93 Interest payables 30 78,113,712.49 77,316,091.67 Dividend payables 31 79,742.80 79,742.80 Other payables 32 1,631,578,755.92 1,918,249,420.49 Contingent liabilities 33 1,117,167,286.59 676,261,668.40Non‐current liabilities
within one year 34 520,000,000.00 18,000,000.00 Other current liabilities 35 1,900,629,102.12 1,518,516,938.67 Total current liabilities 28,745,593,391.98 25,198,338,706.20Non‐current liabilities
Long‐term loans 36 1,270,000,000.00 992,000,000.00 Bonds payable 37 1,967,266,759.93 1,963,348,839.97 Special payable 38 213,630,202.50 131,053,523.96 Deferred tax liabilities 21 41,842,961.06 37,741,632.06 Othernon‐current liabilities 39 2,486,408,374.75 2,404,194,366.91 Totalnon‐current liabilities 5,979,148,298.24 5,528,338,362.90 Total liabilities 34,724,741,690.22 30,726,677,069.10
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2013
(Expressed in Renminbi Yuan)
Notes V 2013 2012Owners’ equity
Share capital 40 4,662,886,108.00 4,662,886,108.00 Capital reserves 41 3,078,557,394.14 3,088,935,360.43 Special reserves 1,670,967.02 ‐ Surplus reserves 42 1,816,272,976.53 1,441,483,901.26 Retained earnings 43 9,233,857,503.02 6,335,790,529.86 Foreign currency reserve (14,890,520.84) (16,160,551.29) Equity attributable to owners 18,778,354,427.87 15,512,935,348.26 Minority interests (138,401,842.18) (122,007,625.09) Total equity 18,639,952,585.69 15,390,927,723.17 TOTAL LIABILITIES
ANDOWNERS’ EQUITY 53,364,694,275.91 46,117,604,792.27
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes V 2013 2012 Operating revenue 44 38,481,862,261.90 29,462,588,753.56 Less: Operating cost 44 31,747,798,788.90 24,040,087,067.12 Business tax and surcharges 45 1,260,779,551.85 759,633,210.06 Operating expenses 46 3,553,555,935.87 2,629,835,059.39 General and administrative
expenses 47 2,891,904,873.05 2,690,247,230.28 Financial expenses 48 71,968,462.37 28,937,872.02 Impairment loss on assets 49 331,591,654.04 258,718,995.15 Add: Profit and loss from fair value
changes 50 (332,407.00) (1,193,392.63) Investment income 51 4,506,602,315.09 1,868,541,181.38 Including: Investment income
from associates and from
joint venture 4,474,644,845.42 1,860,722,181.38 Operating profit 3,130,532,903.91 922,477,108.29 Add:Non‐operating income 52 224,607,784.18 420,602,650.87 Less:Non‐operating expenses 53 39,579,153.15 15,645,905.43 Including: loss on disposal of
non‐current assets 18,587,591.13 4,115,881.11 Total profit 3,315,561,534.94 1,327,433,853.73 Less: Income tax expense 54 (152,930,814.72) (87,573,801.48) Net profit 3,468,492,349.66 1,415,007,655.21 Including: The net profit of the combined
parties before business
combination involving entities
under common control ‐ ‐ Net profit attributable to owners 3,505,640,520.04 1,446,409,591.28 Minority interests (37,148,170.38) (31,401,936.07) Earnings per share 55
Basic earnings per share 0.75 0.31 Diluted earnings per share Not Applicable Not Applicable Other comprehensive income 56 20,674,017.45 10,929,527.72 Total comprehensive income 3,489,166,367.11 1,425,937,182.93
Chongqing Changan Automobile Company Limited
Including: Total comprehensive income
attributable to owners 3,526,314,537.49 1,457,339,119.00 Total comprehensive income
attributable to minority interest (37,148,170.38) (31,401,936.07)
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES INSHAREHOLDERS’ EQUITY
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Equity attributable to owners
Share capital Capital Special Surplus Retained Foreign Subtotal Minority Total reserves reserve reserves earnings currency reserve interest equity At beginning of year 4,662,886,108.00 3,088,935,360.43 ‐ 1,441,483,901.26 6,335,790,529.86 (16,160,551.29) 15,512,935,348.26 (122,007,625.09) 15,390,927,723.17 Changes during the year
I Net profit ‐ ‐ ‐ ‐ 3,505,640,520.04 ‐ 3,505,640,520.04 (37,148,170.38) 3,468,492,349.66 II Other comprehensive income ‐ 19,403,987.00 ‐ ‐ ‐ 1,270,030.45 20,674,017.45 ‐ 20,674,017.45 Total comprehensive income ‐ 19,403,987.00 ‐ ‐ 3,505,640,520.04 1,270,030.45 3,526,314,537.49 (37,148,170.38) 3,489,166,367.11 III Input by investors and
decrease in capital
1. Capital input by investors ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20,753,953.29 20,753,953.29 2. Others ‐ (29,781,953.29) ‐ ‐ ‐ ‐ (29,781,953.29) ‐ (29,781,953.29) IV Distribution of profits
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) V Special reserve
1. Extract ‐ ‐ 28,431,299.68 ‐ ‐ ‐ 28,431,299.68 ‐ 28,431,299.68 2. Use ‐ ‐ (26,760,332.66) ‐ ‐ ‐ (26,760,332.66) ‐ (26,760,332.66) At end of year 4,662,886,108.00 3,078,557,394.14 1,670,967.02 1,816,272,976.53 9,233,857,503.02 (14,890,520.84) 18,778,354,427.87 (138,401,842.18) 18,639,952,585.69
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES INSHAREHOLDERS’ EQUITY
Year ended 31 December 2012
(Expressed in Renminbi Yuan)
Equity attributable to owners Minority Total Share capital Capital reserves Surplus reserves Retained earnings Foreign Subtotal interest equity currency reserve
At end of last year 4,834,482,546.00 3,406,243,605.93 1,279,333,001.49 5,238,240,172.61 (19,067,864.01) 14,739,231,462.02 (90,605,689.02) 14,648,625,773.00
Changes during the year
I Net profit ‐ ‐ ‐ 1,446,409,591.28 ‐ 1,446,409,591.28 (31,401,936.07) 1,415,007,655.21
II Other comprehensive income ‐ 8,022,215.00 ‐ ‐ 2,907,312.72 10,929,527.72 ‐ 10,929,527.72
Total comprehensive income ‐ 8,022,215.00 ‐ 1,446,409,591.28 2,907,312.72 1,457,339,119.00 (31,401,936.07) 1,425,937,182.93
III Input by investors and
decrease in capital
1. Decrease in capital (171,596,438.00) (325,330,460.50) ‐ ‐ ‐ (496,926,898.50) ‐ (496,926,898.50) 2. Others ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ IV Distribution of profits
1.Pick‐up of surplus reserves ‐ ‐ 162,150,899.77 (162,150,899.77) ‐ ‐ ‐ ‐ 2. Distribution to owners ‐ ‐ ‐ (186,708,334.26) ‐ (186,708,334.26) ‐ (186,708,334.26) At end of year 4,662,886,108.00 3,088,935,360.43 1,441,483,901.26 6,335,790,529.86 (16,160,551.29) 15,512,935,348.26 (122,007,625.09) 15,390,927,723.17
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes V 2013 2012 CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 37,134,330,352.74 25,663,720,716.16 Refunds of taxes 147,688,198.78 64,506,744.26 Cash received relating to
other operating activities 57 1,166,071,012.41 690,217,042.92Sub‐total of cash inflows 38,448,089,563.93 26,418,444,503.34 Cash paid for goods and services 26,705,741,449.21 18,802,103,710.55 Cash paid to and on behalf of
employees 2,644,629,978.53 2,349,914,141.29 Cash paid for all types of taxes 2,473,956,911.00 1,193,706,087.40 Cash paid relating to
other operating activities 57 4,791,115,000.82 3,560,834,890.72Sub‐total of cash outflows 36,615,443,339.56 25,906,558,829.96 Net cash flows from operating
activities 58 1,832,646,224.37 511,885,673.38
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes V 2013 2012 CASH FLOWS FROM
INVESTING ACTIVITIES:
Cash received from disposal
of investments 8,715,226.30 ‐ Cash received from return
on investments 1,632,208,203.42 1,807,819,000.00 Net cash received from disposal
of fixed assets, intangible assets
and otherlong‐term assets 9,534,295.27 2,667,743.02 Cash received relating to other investing
activities 57 31,545,952.00 225,800,000.00Sub‐total of cash inflow 1,682,003,676.99 2,036,286,743.02 Cash paid for acquisition
of fixed assets, intangible assets
and otherlong‐term assets 2,469,249,621.53 4,886,774,898.90 Cash paid for acquisition
of investments 1,304,825,990.00 126,221,699.10 Cash paid relating to other investing
activities 57 ‐ 703,015,710.00Sub‐total of cash outflows 3,774,075,611.53 5,716,012,308.00 Net cash flows from investing activities (2,092,071,934.54) (3,679,725,564.98)
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes V 2013 2012 CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from borrowings 2,258,000,000.00 3,274,398,247.02 Cash received from issuing bonds ‐ 1,960,410,400.00 Cash received relating to
other financing activities 57 256,922,675.77 119,759,876.44
Sub‐total of cash inflows 2,514,922,675.77 5,354,568,523.46
Cash repayments of borrowings 1,470,000,000.00 1,991,288,247.02
Cash paid for distribution of dividends
or profits and interest expenses 434,092,769.25 250,137,801.29
Cash paid relating to
other financing activities 57 158,865,869.37 598,466,584.26
Sub‐total of cash outflows 2,062,958,638.62 2,839,892,632.57
Net cash flows from financing activities 451,964,037.15 2,514,675,890.89
EFFECT OF CHANGES IN EXCHANGE
RATE ON CASH (7,606,526.91) (51,699.56) NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 184,931,800.07 (653,215,700.27)
Add: Opening balance of
cash and cash equivalents 3,585,495,012.22 4,238,710,712.49
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 58 3,770,426,812.29 3,585,495,012.22
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2013
(Expressed in Renminbi Yuan)
Notes XII 2013 2012 Current assets
Cash 3,290,584,684.00 3,081,165,146.84 Notes receivable 10,612,070,124.82 7,803,725,888.00 Accounts receivable 1 1,393,930,437.57 1,071,345,619.44 Prepayments 1,006,257,953.21 397,342,870.76 Dividend receivable ‐ 450,030.00 Other receivables 2 550,745,735.30 315,576,507.71 Inventories 3,995,173,686.02 3,396,111,119.31 Total current assets 20,848,762,620.92 16,065,717,182.06Non‐current assets
Available‐for‐sale financial assets 176,257,500.00 158,507,500.00Long‐term equity investments 3 13,767,197,201.37 8,885,998,867.75 Fixed assets 11,991,246,390.25 10,191,569,154.86 Construction in progress 1,227,441,848.35 2,571,337,326.77 Project materials 96,690.75 795,898.75 Fixed assets disposal ‐ 2,485,714.76 Intangible assets 1,854,137,128.97 1,964,748,143.27 Development expenditure 612,487,126.25 354,257,952.32Long‐term deferred expenses 540,240.00 720,320.00 Deferred tax assets 897,445,610.07 740,904,515.31 Othernon‐current assets 244,336,881.52 923,395,734.00 Totalnon‐current assets 30,771,186,617.53 25,794,721,127.79 TOTAL ASSETS 51,619,949,238.45 41,860,438,309.85
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2013
(Expressed in Renminbi Yuan)
Notes XII 2013 2012 Current liabilities
Short‐term loans 1,200,000,000.00 1,170,000,000.00 Notes payable 7,579,635,615.92 6,066,445,485.27 Accounts payable 6,807,637,925.32 5,183,680,120.24 Advances from customers 4,277,575,537.45 3,466,741,620.70 Payroll payable 710,331,644.30 374,013,646.52 Taxes payable 478,169,294.18 290,496,103.52 Interest payable 77,672,045.84 77,316,091.67 Other payables 1,404,722,740.89 1,607,748,312.43 Contingent liabilities 761,596,810.09 332,489,210.32Non‐current liabilities
within one year 520,000,000.00 ‐ Other current liabilities 1,677,944,402.50 1,068,916,123.41 Total current liabilities 25,495,286,016.49 19,637,846,714.08Non‐current liabilities
Long‐term loans 1,270,000,000.00 900,000,000.00 Bonds payable 1,967,266,759.93 1,963,348,839.97 Special payable 129,901,302.92 69,225,925.06 Deferred tax liabilities 23,006,625.00 20,344,125.00 Othernon‐current liabilities 2,243,478,199.06 2,308,856,151.75 Totalnon‐current liabilities 5,633,652,886.91 5,261,775,041.78 Total liabilities 31,128,938,903.40 24,899,621,755.86Owner’s equity
Share capital 4,662,886,108.00 4,662,886,108.00 Capital reserves 3,366,723,267.88 3,351,635,767.88 Surplus reserves 1,816,272,976.53 1,441,483,901.26 Retained earnings 10,645,127,982.64 7,504,810,776.85 Totalowner’s equity 20,491,010,335.05 16,960,816,553.99 TOTAL LIABILITIES
ANDOWNERS’ EQUITY 51,619,949,238.45 41,860,438,309.85
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes XII 2013 2012 Operating revenue 4 33,236,680,670.90 22,839,252,968.43 Less: Operating cost 4 27,245,442,791.23 18,312,319,774.19 Business tax and surcharges 1,117,916,162.10 628,759,885.50 Operating expenses 3,126,798,393.17 1,993,125,368.85 General and administrative
expenses 2,530,601,839.92 2,370,319,505.92 Financial expenses 90,516,587.46 47,042,336.52 Impairment loss on assets 241,584,456.51 247,823,520.81 Add: Investment income 5 4,514,123,981.76 1,866,988,848.05 Including: Investment income
from associates and from
joint venture 4,474,644,845.42 1,860,722,181.38 Operating profit 3,397,944,422.27 1,106,851,424.69 Add:Non‐operating income 203,618,522.36 392,733,313.75 Less:Non‐operating expenses 33,524,849.01 4,768,387.86 Including: loss on disposal of
non‐current assets 15,568,913.15 1,899,299.43 Total profit 3,568,038,095.62 1,494,816,350.58 Less: Income tax expense (179,852,657.05) (126,692,647.11) Net profit 3,747,890,752.67 1,621,508,997.69 Other comprehensive income 15,087,500.00 12,824,375.00 Total comprehensive income 3,762,978,252.67 1,634,333,372.69
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES INSHAREHOLDERS’ EQUITY
Year ended 31 December 2013 and 2012
(Expressed in Renminbi Yuan)
2013
Share Capital Special Surplus Retained Total Capital reserves reserves reserves earnings owners’ equity At beginning of year 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 Changes during the year
I Net profit ‐ ‐ ‐ ‐ 3,747,890,752.67 3,747,890,752.67 II Other comprehensive
income ‐ 15,087,500.00 ‐ ‐ ‐ 15,087,500.00 Total comprehensive income ‐ 15,087,500.00 ‐ ‐ 3,747,890,752.67 3,762,978,252.67 III Input by investors and
decrease in capital
1. Capital input by
investors ‐ ‐ ‐ ‐ ‐ ‐ IV Distribution of profits
1.Pick‐up of surplus
reserves ‐ ‐ ‐ 374,789,075.27 (374,789,075.27) ‐ 2.The distribution
to shareholders ‐ ‐ ‐ ‐ (232,784,471.61) (232,784,471.61) V Special reserve
1. Extract ‐ ‐ 16,500,000.00 ‐ ‐ 16,500,000.00 2. Use ‐ ‐ (16,500,000.00) ‐ ‐ (16,500,000.00) At end of year 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 2012
Share Capital Surplus Retained Total Capital reserves reserves earnings owners’ equity At beginning of year 4,834,482,546.00 3,664,141,853.38 1,279,333,001.49 6,232,161,013.19 16,010,118,414.06 Changes during the year
I Net profit ‐ ‐ ‐ 1,621,508,997.69 1,621,508,997.69 II Other comprehensive
income ‐ 12,824,375.00 ‐ ‐ 12,824,375.00 Total comprehensive income ‐ 12,824,375.00 ‐ 1,621,508,997.69 1,634,333,372.69 III Input by investors and
decrease in capital
1. Decrease in capital (171,596,438.00) (325,330,460.50) ‐ ‐ (496,926,898.50) IV Distribution of profits
1.Pick‐up of surplus
reserves ‐ ‐ 162,150,899.77 (162,150,899.77) ‐ 2.The distribution
to shareholders ‐ ‐ ‐ (186,708,334.26) (186,708,334.26) At end of year 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
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes XII 2013 2012 CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 29,826,921,364.96 19,665,396,491.13 Refunds of taxes 17,181,800.00 4,843,000.00 Cash received relating to
other operating activities 6 1,025,366,113.23 644,984,705.57Sub‐total of cash inflows 30,869,469,278.19 20,315,224,196.70 Cash paid for goods and services 21,005,214,115.22 14,122,561,258.66 Cash paid to and on behalf of
employees 2,095,086,575.25 1,788,111,766.19 Cash paid for all types of taxes 2,066,677,520.39 830,908,158.82 Cash paid relating to
other operating activities 6 4,083,138,002.79 2,997,462,352.80Sub‐total of cash outflows 29,250,116,213.65 19,739,043,536.47 Net cash flows from operating
activities 7 1,619,353,064.54 576,180,660.23
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes XII 2013 2012 CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from disposal
of investments 8,715,226.30‐
Cash received from return
on investments 1,639,729,870.09 1,806,266,666.67
Net cash received from disposal
of fixed assets, intangible assets
and otherlong‐term assets 9,571,298.73 1,175,675.18
Cash received relating to other investing
activities 6 150,000,000.00 205,000,000.00
Sub‐total of cash inflows 1,808,016,395.12 2,012,442,341.85
Cash paid for acquisition
of fixed assets, intangible assets
and otherlong‐term assets 2,14,441,873.38 4,668,855,370.93
Cash paid for acquisition
of investments 1,313,853,990.00 126,221,699.10
Cash paid relating to other investing
activities 6 250,000,000.00 853,015,710.00
Sub‐total of cash outflows 3,712,295,863.38 5,648,092,780.03 Net cash flows from investing activities (1,904,279,468.26) (3,635,650,438.18)
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Notes XII 2013 2012 CASH FLOWS FROM
FINANCING ACTIVITIES
Cash received from borrowings 2,200,000,000.00 3,084,398,247.02
Cash received from issuing bonds ‐ 1,960,410,400.00Sub‐total of cash inflows 2,200,000,000.00 5,044,808,647.02
Cash repayments of borrowings 1,280,000,000.00 1,911,288,247.02
Cash paid for distribution of dividends
or profits and for interest expenses 425,654,059.12 244,439,219.60 Cash paid relating to
other financing activities 6 ‐ 496,926,898.50Sub‐total of cash outflows 1,705,654,059.12 2,652,654,365.12
Net cash flows from financing activities 494,345,940.88 2,392,154,281.90
EFFECT OF CHANGES IN EXCHANGE
RATE ON CASH ‐ ‐ NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 209,419,537.16 (667,315,496.05)
Add: Opening balance of
cash and cash equivalents 3,081,165,146.84 3,748,480,642.89
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 7 3,290,584,684.00 3,081,165,146.84
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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 isYu‐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 RMB876,190,000.
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 RMB1,226,666,000.
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 RMB1,226,666,000 to RMB1,471,999,200.
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 RMB1,620,849,200.
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 ofnon‐tradable shares for theirnon‐tradable shares according to the ”Reply of the problems related to the reformation ofnon‐tradable shares of Chongqing Changan Automobile Co., Ltd.”(2006[442] Guo Zi Chan Quan) issued by theState‐owned Assets Supervision and Administration Commission of State Council and the relatedshareholder’s meeting. After the reformation ofnon‐tradable shares, South Industries Motor occupied45.548% of equity through 738,255,200 common shares.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders, which increased the total share capital from RMB1,620,849,200 to RMB1,945,019,040.
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 RMB2,334,022,848.
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 refer 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 RMB2,685,823,637. After the completion of the issuance, China Changan hold 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 RMB4,834,482,546.
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 RMB4,662,886,108.
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 holds 1,913,557,480 shares of the Company's ordinary share, with shares proportion decreasing to41.04%.
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 2014, was submitted to general meeting of shareholders for approval.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Summary of significant accounting policies, estimates and prior period error
1. Basis of preparation
The financial statements have been prepared in accordance with Accounting Standards for BusinessEnterprises‐Basic Standard and 38 specific standards issued in February 2006, 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.
When preparing the financial statements, except for certain financial instruments, assets are recorded at actual cost when they are acquired. If the assets are impaired, the corresponding provisions should be made accordingly. The assets are recorded at assessed value byState‐owned Assets Supervision and Administration Commission of the State Council, which are invested into the Group in the reforming period.
2. 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 2013 and the financial results and the cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
3. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
4. 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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
5. Business combinations
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 that, 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.
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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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.
6. 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 2013. A subsidiary is an enterprise or entity that is controlled by the Group.
Consolidated financial statements are prepared using uniform reporting dates and accounting policies. All significant intercompany assets, liabilities, equity, revenue, expense and cash flow within the Group are eliminated 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 2013
(Expressed in Renminbi Yuan)
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.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents areshort‐term, highly liquid investments held by the Company, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
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 as at 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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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
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|-|
|A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability orequity instrument of another entity.Recognition and derecognitionThe Group recognizes a financial asset or a financial liability, when the Group becomes a party to thecontractual provision of the instrument.The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar financialassets), 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 topay 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 hastransferred control of the asset.If the underlying obligation of a financial liability has been discharged or cancelled or has expired, the financialliability is derecognized. If an existing financial liability is replaced by the same creditor, with a new financialliability that has substantially different terms, or if the terms of an existing financial liability are substantiallyrevised, such replacement or revision is accounted for as the derecognition of the original liability and therecognition of a new liability, and the difference thus resulted is recognized in profit or loss for the currentperiod.|
|When buy or sell financial instruments under a normal way, financial instruments are recognized orderecognized according to the transaction date accounting. A normal way to buy or sell financial instrumentsrefers to, according to the contract terms, receive or deliver financial instruments within the period as requiredby legal regulation or generally accepted guidelines. Transaction date refers to the date when the Groupcommitted to buy or sell financial instruments.|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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 liabilities 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 ofshort‐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 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 arenon‐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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Loans and receivables
Loans and receivables arenon‐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 thosenon‐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 anavailable‐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 anavailable‐for‐sale financial asset are recognized in profit or loss for the current period.
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.
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 ofshort‐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.
Derivative financial instruments
Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
entered into and are subsequently revaluated at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. An investment in equity instruments do not have a quoted market price in an active market, or derivatives linked to such equity instruments, is measured at cost because its fair value cannot be measured reliably.
In addition to a part of the cash flow hedging belongs to the effective hedging included in other comprehensive income and affect the income statement of the hedged item into the income statement. Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are directly recognized in the income statement.
Fair value of financial instruments
If there is an active market for a financial asset or financial liability, the Group determines the fair value by using the quoted prices. If no active market exits for a financial instrument, the Group establishes fair value by using a valuation technique. Valuation techniques include using recentarm’s length market transactions between knowledgeable, willingparties’ reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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 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.
Impairment losses on debt instruments are reversed through the income statement if the increase in fair value of the instruments can be objectively related to an event occurring after the impairment loss was recognised.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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.
Forlong‐term equity investments, which are accounted for according to the cost method set out by Accounting Standards for Business Enterprises No. 2–Long‐term Equity Investments and has no quoted market price in active markets, and whose fair values cannot be reliably measured, their impairment should also be treated in accordance with the above principle.
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.
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for provision
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|-|-|
|Criterion for individually significant items|Accounts receivable balance greater than RMB15 million duefrom non‐related parties|
|Method for provision|A provision of the difference between recoverable amountand book value is recognized based on individually analysis.|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) Accounts receivable analyzed by group for provision
||||
|-|-|-|
||Criterion for group||
|Group 1|Group 1|Accounts receivable other than individually significant items and analyzed individually forprovision|
||Group 2|Accounts receivable due from related parties|
||Method for the provision of group||
||Group 1|Making provision according to aging analysis|
|Group 2|Group 2|A provision of the difference between recoverable amount and book value is recognizedbased on individually analysis.|

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
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|-|-|-|
||Criterion for individually analysis|There is objective evidence that the accounts receivable due fromnon‐related parties is impaired and the future recoverable possibility is little.|
||for provision||
|Method for provision|Method for provision|A provision of the difference between recoverable amount and book value isrecognized individually.|

11. Inventory
(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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) Measurement of issued 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 oflow‐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 thewrite‐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.
12.Long‐term equity investments
Long‐term equity investments include investments in subsidiaries, joint ventures and associates, and capital investment which the Group does not control of the investee enterprise, or does not have jointly control or significant influence on the investee enterprise, the fair value of which cannot be reliably measured due to the fact they are not quoted in an active market.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(1) Initial recognition and measurement
Thelong‐term investments are initially recorded at cost 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.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 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 Group adopted cost method to account forlong‐term equity investments, when the Group has not control of the investee enterprise, or does not have jointly control or significant influence on the investee enterprise, the fair value of which cannot be reliably measured due to the fact they are not quoted in an active market. The Company adopted cost method to account forlong‐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, thelong‐term equity investment is valued at the cost of the initial investment. Profit or cash dividends declared by the invested enterprise are recognized as investment income for the current period, except the declared but unpaid cash dividends and interests included in the initial cost. The Group should assess the impairment of thelong‐term investments according with the impairment policy of assets.
The equity method is applied to account forlong‐term equity investments, when the Group has jointly control, or significant influence on the investee companies. 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 along‐term equity investment exceeds the investingenterprise’s interest in the fair values of theinvestee’s identifiable net assets at the acquisition date, the difference between them 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 thelong‐term equity investment shall be adjusted accordingly.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) Subsequent measurement and recognition of investment income or loss
Under equity method, the Group recognizes its share ofpost‐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 thelong‐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 respectivelong‐term investment.
On settlement of along‐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. 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.
(3) Impairment oflong‐term investment
Refer to Notes II, 27 for the details of the impairment testing for subsidiaries,jointly‐venture and associates. Refer to Notes II, 9 for the impairment testing forlong‐term investment that the fair value of which cannot be reliably measured due to the fact they are not quoted in an active market.
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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
The initial measurement of the investment property shall be measured at its actual cost. Thefollow‐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 makefollow‐up measurement to the investment property. The buildings are depreciated understraight‐line method.
Refer to Notes II, 27 for the details of the impairment testing for investment property measured at the cost method.
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 onstraight‐line basis. The estimated useful lives, estimated residual values and annual depreciation rates for each category of fixed assets are as follows:
||||||
|-|-|-|-|-|
|Category|Deprecation period|Residual rate (%)||Yearly deprecation 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.|||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(3) Impairment of fixed assets
Refer to Notes II, 27 for the details of the impairment testing for fixed assets.
(4) 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.
Refer to Notes II, 27 for the details of the impairment testing for construction in progress.
16. Borrowing costs
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|Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of thefunds. Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillarycosts incurred in connection with the arrangement of borrowings, and exchange differences arising from foreigncurrency borrowings.The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifyingasset are capitalized, otherwise the borrowing costs are expensed in the period during which they are incurred. Aqualifying asset is an asset (an item of property, plant and equipment and inventory etc.) that necessarily takes asubstantial 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:(a) expenditure for the asset is being incurred;(b) borrowing costs are being incurred; and(c) 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 thequalifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized inthe income statement.During the capitalization period, the amount of interest to be capitalized for each accounting period shall be|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
determined as follows:
(a) where funds are borrowed for aspecific‐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;
(b) where funds are borrowed for ageneral‐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 ofspecific‐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.
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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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 yearsNon‐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 toself‐developed properties, the corresponding land use right and buildings should be recorded as intangible and fixed assets separately. As to the purchased properties, if encountered the reasonable allocation of outlays 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 thestraight‐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.
Refer to Notes II, 27 for the details of the impairment testing for intangible assets.
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.
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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
The expenditures incurred beforeproject‐determination stage is charged to the current income, otherwise it is recorded as development cost.
19.Long‐term deferred expenses
Thelong‐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 thestraight‐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:
‐ the obligation is a present obligation of the Group;
‐ it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
‐ 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.
21. Buy back of shares
The expenses or consideration paid forbuy‐back of capital instruments is a deduction of totalowner’s equity. The issue,buy‐back, sell orwrite‐off of capital instruments are not recognized as profit or loss.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
22. 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 to 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.
Rental income
Rental income from operating leases is recognized by the lesser in the income statement on astraight‐line basis over the lease term.
23. 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
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
government documents to be used to purchase and construct thelong‐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 thelong‐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.
24. 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 astraight‐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 astraight‐line basis over the lease term.
25. Employee benefits
Employee benefits are all forms of consideration given and other relevant expenditure incurred by the Group in exchange for service rendered by employees. During the accounting period that the employees render services to the Group, the employee benefits payable is recognized as a liability. When the termination benefits fall due more than 1 year after the balance sheet date, if the discounted value is material, it is reflected in present value. The employees of the Group participate in social insurance, such as pension insurance, medical insurance,non‐employment insurance, etc., and housing accumulation fund, 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.
Employee termination and early retirement benefits are recognized in the period in which the Group has entered into an agreement with the employee specifying the terms of redundancy or after the individual employee has been advised of the specific terms. when the Group terminates the employment relationship with employees before the end of the employment contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, a provision shall be recognized for the compensation arising from termination of employment relationship with employees, with a corresponding charge to the income statement for the current period, when both of the following conditions are satisfied: (a) the Group has a formal plan for termination of employment relationship, or has made an offer for voluntary redundancy, which will be
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
implemented immediately; (b) the Group cannot unilaterally withdraw from the termination plan or the redundancy offer. The same principle is applied to the early retirement plan, as it is for theabove‐mentioned termination benefits. The salaries, social insurance premiums, etc., to be paid for the early retired employees, during the period from the date when the employees stop rendering service to the normal retirement date, should be recognized as employee benefits payable and charged to the income statement of the current period, when the above conditions for recognizing the termination benefit plan are satisfied. The specific terms for the terminated and early retired employees vary depending on various factors including their position, length of service, and salary level at the time of application, minimum compensation levels set by the local regulatory authorities, and the district in which the employee is located.
Termination and early retirement benefits are considered as defined benefit plans. The liability recognized in the balance sheet in respect of these defined benefit plans is the present value of the defined benefit obligation at the balance sheet date, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit cost method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government securities which have maturities approximating to the terms of the related pension liability. Actuarial gains and losses arising from changes in actuarial assumptions and the changes to the pension plan are charged or credited to the income statement of the current period.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
26. 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 injointly‐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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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.
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.
27. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory, deferred income taxes, financial assets, andlong‐term equity investment which is measured by employing the cost method, for which there is no offer in the active market and of which the fair value cannot be reliably measured, 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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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.
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.
28. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders. 29. 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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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 ofavailable‐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.
Impairment ofnon‐current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication thatnon‐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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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 andslow‐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.
Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based on certainpre‐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 2013
(Expressed in Renminbi Yuan)
31. Accounting policy and accounting estimation change
Accounting estimation change
In recent years, the volume of production and sales keeps scaling up. Considering theGroup’sproduction’s characteristics, quality assurance period and obligation of warranty clues, the Group changed the extraction method of warranty to keep the balance of warranty as a certain multiples of the average month warranty payment among the last 12 months to state the balance of warranty more reasonably. The accounting estimation change lead to a decrease with amount of RMB183,273,615.34 to theGroup’s total profit of the year of 2013 and a decrease with amount of RMB174,109,934.58 to theGroup’s net profit. And it decreased the net profit attributable to owners by RMB174,109,934.58.
III. Taxes
1. The major categories of taxes and surcharges
|||||||
|-|-|-|-|-|-|
||Categories of taxes and surcharges||Basis of tax||Tax rate|
|Value added tax (“VAT”)|Value added tax (“VAT”)|Levy on the taxable sales and rendering ofservices, deducted the deductible input VAT.||6% or 17%||
||Consumption tax|Taxable sales||1%,3% or5%||
||Business tax|Taxable sales||5%||
||City maintenance and construction|The turnover taxes paid||5% or7%||
||tax|||||
||Educational surcharge|The turnover taxes paid||3%||
||Local educational surcharge|The turnover taxes paid||2%||
||Corporate income tax|Taxable income||15% or25%||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2. Tax benefits
In accordance to Circular on the Issue of Preferential Taxation Policies for Western Development Program (Cai Shui[2001] No. 202) collectively issued by the Ministry of Finance, the National Taxation Bureau and the Customs General Administration of PRC, the Company and Chongqing Changan Special Automobile Co., Ltd (the “Changan Special Sales”) are entitled to a preferential enterprise income tax (“EIT”)rate of15% in 2010, as the Company and Changan Special Sales are qualified as a domestic enterprise in encouraged industries. 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 in encouraged business would be entitled to a preferential EIT rate of15%. Theabove‐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. Although the Catalogue of Encouraged Industries in Western Region has not been issued, from themanagement’s opinion, the major operations of the Company and Changan Special Sales were qualified as encouraged industries and there are no changes in the scope of business operations for both companies in 2013. The corporate income tax of the Company and Changan Special Sales were currently accrued at the rate of15% in 2013 with permission of thein‐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 ofHi‐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 asHi‐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 withhi‐tech certification would be entitled to a tax preference of15%. For the year ended 31 December 2013, 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 2013
(Expressed in Renminbi Yuan)
IV. Consolidation scope
1. Subsidiary
(1) The subsidiary formed by establish or investment
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of Subsidiaries|Type ofcompany|Registeredplace|Nature ofbusiness|Registeredcapital(0,000)|Scope of business|Actualinvestment(0,000)|The otherbalance ofinvestment||Total||Total|Consolidated ornot|Minority interest|Amount ofminority interestdeducted theequity belong tominorities|
||||||||||proport||proporti||||
||||||||||ion of||on of||||
||||||||||shareho||voting||||
||||||||||lders||rights||||
||||||||||(%)||(%)||||
|Hebei ChanganAutomobile Co., Ltd|Co., Ltd.|Dingzhou|Manufactory|46,469|Manufacture and sellingcars and spare parts|43,794|‐|94.15||95.70||Yes|37,331,477.86|‐|
|Chongqing ChanganInternationalAutomobile Sales Co.,Ltd|Co., Ltd.|Chongqing|Sales|1,376|Seller and agent ofimport/export services ofcommodities andtechniques|1,307|‐|95.00||95.00||Yes|(8,080,565.79)|(1,235,471.55)|
|Chongqing ChanganAutomobile Sales Co.,Ltd|Co., Ltd.|Chongqing|Sales|4,850|Seller of cars and spareparts|4,850|‐|100.00||100.00||Yes|‐|‐|
|Chongqing ChanganSpecial Automobilesales Co., Ltd(Note)|Co., Ltd.|Chongqing|Sales|500|Seller and repairer ofspecial cars and spareparts|250|‐|50.00||50.00||Yes|18,232,733.46|‐|
|Chongqing ChanganAutomobilesupporting serviceCo., Ltd.|Co., Ltd.|Chongqing|Sales|3,000|Seller of cars and spareparts|3,000|‐|100.00||100.00||Yes|‐|‐|
|Chongqing ChanganNew EnergyAutomobile Co. Ltd|Co., Ltd.|Chongqing|R&D|2,900|Developer, Manufacturerand seller of new‐energycars|1,885|‐|65.00||65.00||Yes|10,310,652.85|‐|
|Chongqing ChanganEurope DesignAcademy Co., Ltd.|Co., Ltd.|Turin, Italy|R&D|EUR 1,460|Research anddevelopment of vehicles|13,488|‐|100.00||100.00||Yes|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Changan UnitedKingdom R&D CenterCo., Ltd.|Co., Ltd.|Nottingham, UnitedKingdom|R&D|GBP 10|Engine project planning,project management,feasibility studies,preliminary research andother cutting‐edgetechnology|98|‐|100.00||100.00||Yes|‐|‐|
|Name of Subsidiaries|Type ofcompany|Registeredplace|Nature ofbusiness|Registeredcapital(0,000)|Scope of business|Actualinvestment(0,000)|The otherbalance ofinvestment||Total||Total|Consolidated ornot|Minority interest|Amount ofminority interestdeducted theequity belong tominorities|
||||||||||proport||proporti||||
||||||||||ion of||on of||||
||||||||||shareho||voting||||
||||||||||lders||rights||||
||||||||||(%)||(%)||||
|Beijing Changan R&DCenter Co., Ltd.|Co., Ltd.|Beijing|R&D|100|Engineering andtechnology research anddevelopment|100|‐|100.00||100.00||Yes|‐|‐|
|Harbin Changan R&DCenter Co., Ltd.|Co., Ltd.|Habin|R&D|100|Research anddevelopment of cars andspare parts|100|‐|100.00||100.00||Yes|‐|‐|
|Jiangxi Changan R&DCenter Co., Ltd.|Co., Ltd.|Jingdezhen|R&D|200|Research anddevelopment of cars andspare parts|200|‐|100.00||100.00||Yes|‐|‐|
|Shanghai ChanganR&D Center Co., Ltd.|Co., Ltd.|Shanghai|R&D|100|Research anddevelopment of cars andspare parts|100|‐|100.00||100.00||Yes|‐|‐|
|Changan JapanDesigning CenterCo.,Ltd.|Co., Ltd.|Yokohama,Japan|R&D|JPY 2,000|Engine project planning,project management,feasibility studies,preliminary research andother cutting‐edgetechnology|139|‐|100.00||100.00||Yes|‐|‐|
|Changan UnitedStates R&D CenterCo., Ltd.|Co., Ltd.|Troy,Unitedstates|R&D|USD 20|Engine project planning,project management,feasibility studies,preliminary research andother cutting‐edgetechnology|132|‐|100.00||100.00||Yes|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Note: 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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) The subsidiary formed by business combination under common control
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of Subsidiaries|Type ofcompany|Registeredplace|Nature ofbusiness|Registeredcapital(0,000)|Scope of business|Actualinvestment(0,000)|The otherbalance ofinvestment|Totalproportion ofshareholders (%)||Total|Consolidated ornot|Minority interest|Amount of minorityinterest deductedthe equity belongto minorities|
|||||||||||propor||||
|||||||||||tion of||||
|||||||||||voting||||
|||||||||||rights||||
|||||||||||(%)||||
|Chongqing ChanganAutomobile salessubsidiaries|Co., Ltd|PRC|Sales|850|Seller of cars and spareparts|850|‐|100|100||Yes|‐|‐|
|Hebei BaodingChangan Bus Co., Ltd|Co., Ltd|PRC|Manufacturer|3,000|Manufacture and sellingcars, trucks, vans, electricvehicles, special vehicles,spare parts, molds andnon‐standard machineries|20,271|‐|100|100||Yes|‐|‐|

(3) The subsidiary formed by business combination not under common control
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of Subsidiaries|Type ofcompany|Registeredplace|Nature ofbusiness|Registeredcapital(0,000)|Scope of business|Actualinvestment(0,000)|The otherbalance ofinvestment||Total||Total|Consolidated ornot|Minority interest|Amount ofminority interestdeducted theequity belong tominorities|
||||||||||proporti||propor||||
||||||||||on of||tion of||||
||||||||||shareho||voting||||
||||||||||lders||rights||||
||||||||||(%)||(%)||||
|Nanjing ChanganAutomobile Co., Ltd.|Co., Ltd|Nanjing|Manufacturer|60,181|Manufacture and sellingcars and spare parts|42,254|‐|84.73||93.79||Yes|(196,196,140.56)|(47,965,175.95)|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2. Consolidation scope
Although the Group owns more than half of the voting power of the following investees, it does not have control over the investees as:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Registeredplace|Nature of Business|Registeredcapital (0,000)|Actualinvestment(0,000)||Total proportion of|||Totalproportion ofvoting rights(%)|Company code|
|||||||shareholders|||||
|||||||Directly||In directly|||
|||||||(%)||(%)|||
|Chongqing Changan SuzukiAutomobile Co., Ltd.|Chongqing|Manufacture andselling cars andspare parts|USD 19,000|23,991|51.00||‐||51.00|62190016‐7|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
3. The exchange rate for financial statements of offshore companies
||||||||||
|-|-|-|-|-|-|-|-|-|
|Currency||Average exchange rate||||Exchange rate at year end|||
|||2013||2012||2013||2012|
|GBP|10.1084||9.9364||10.0556||10.1611||
|USD|6.2042||6.2897||6.1299||6.2784||
|JPY|0.0654||0.0771||0.0578||0.0730||
|EUR|8.3683||8.2401||8.4189||8.3176||

V. Notes to the consolidated financial statements
1. Cash and cash equivalents
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2013|||||2012||||
||||Original||Exchange|Equivalent to RMB|Original currency|||Exchange|Equivalent to RMB|
||||currency||rate|||||rate||
|Cash||‐||‐||78,225.44|‐||‐||32,745.00|
|RMB||‐||‐||78,225.44|‐||‐||32,745.00|
|Cash atbank||||||3,770,348,586.85|‐||‐||3,585,462,267.22|
|RMB||‐||‐||3,710,583,545.70|‐||‐||3,566,104,895.00|
|USD||6,217,289.68||6.1299||38,111,079.91|1,461,472.40||6.2784||9,175,680.28|
|GBP||728,381.00||10.0556||7,324,307.98|17,071.00||10.1611||173,460.14|
|EUR||1,483,992.00||8.4189||12,493,580.25|1,139,802.81||8.3176||9,480,423.85|
|JPY||31,781,915.00||0.0578||1,836,073.01|7,225,396.00||0.0730||527,807.95|
|Othercash||‐||‐||511,288,787.94|‐||‐||614,268,903.60|
|RMB||‐||‐||511,288,787.94|‐||‐||614,268,903.60|
||Total|||||4,281,715,600.23|‐||‐||4,199,763,915.82|

 As at 31 December 2013, the book value of restricted cash and cash equivalent is RMB511,288,787.94 (As at 31 December 2012: RMB614,268,903.60), which was restricted for the issuance of acceptance bill.
As at 31 December 2013, the cash at bank oversea is equivalent to RMB22,606,160.53 (As at 31 December 2012: RMB10,632,539.59).
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short term time deposits are made for periods of 3 months depending on the cash requirements of the Group, and earn interest at the respective time deposit rates. Notice deposits are made for periods of 7 days depending on the cash
requirements of the Group, and earn interest at the respective notice deposit rates.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2. Financial assets held for trading
|||||
|-|-|-|-|
||Category|2013|2012|
|Forward currency contracts||‐|332,407.00|

 As at 31 December 2013, there is noun‐matured forward currency contract (As at 31 December 2012: USD 4,000,000.00).
3. Notes receivable
(1) Classification of notes receivable
||||||
|-|-|-|-|-|
||Type|2013||2012|
|Commercial acceptance bill||3,963,169,235.00|2,992,911,242.00||
|Bank acceptance bill||7,309,043,112.84|6,371,429,730.00||
||Total|11,272,212,347.84|9,364,340,972.00||

 As at 31 December 2013 and 31 December 2012, the expiration date of all the notes receivable is within 6 months.
(2) As at 31 December 2013, notes receivable with a carrying amount of RMB505,713,794.48 (As at 31 December2012：RMB539,221,128.00) were pledged to issue notes payable.
The top five largest notes pledged are as follows:
2013
||||||||||
|-|-|-|-|-|-|-|-|-|
||No.||Relationship with the Group||Issuing Date|Expiration Date||Amount|
|First||Related||11 September 2013||11 January 2014|50,000,000.00||
|Second||Related||9 September 2013||9 January 2014|30,000,000.00||
|Third||Related||7 November 2013||7 March 2014|30,000,000.00||
|Fourth||Related||19 November 2013||19 March 2014|30,000,000.00||
|Fifth||Related||22 November 2013||22 March 2014|30,000,000.00||
||Total||||||170,000,000.00||

 2012
||||||||||
|-|-|-|-|-|-|-|-|-|
||No.||Relationship with the Group||Issuing Date|Expiration Date||Amount|
|First||Related||8 August 2012||8 February 2013|15,000,000.00||
|Second||Related||22 October 2012||22 March 2013|12,000,000.00||
|Third||Related||24 September 2012||24 January 2013|11,000,000.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
|Fourth||Related|26 November 2012|26 March 2013|10,000,000.00|
|Fifth||Related|20 November 2012|20 April 2013|10,000,000.00|
||Total||||58,000,000.00|

 (3) As at 31 December 2013, there are no notes transferred to accounts receivable due to thenon‐acceptance.(As at 31 December 2012:nil)
(4) As at 31 December 2013, top five notes receivable that endorsed but unexpired are as follows:
2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||No.||Relationship with the Group||Issuing Date||Expiration Date||Amount|
|First||Related||26 September 2013||26 March 2014||47,000,000.00||
|Second||Non‐related||29 November 2013||26 May 2014||35,000,000.00||
|Third||Non‐related||29 November 2013||26 May 2014||30,000,000.00||
|Fourth||Related||12 September 2013||8 February 2014||30,000,000.00||
|Fifth||Non‐related||29 November 2013||26 May 2014||27,000,000.00||
||Total|||||||169,000,000.00||

 2012
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||No.||Relationship with the Group||Issuing Date||Expiration Date||Amount|
|First||Non‐related||8 October 2012||8 January 2013||32,000,000.00||
|Second||Non‐related||28 September 2012||28 March 2013||30,000,000.00||
|Third||Non‐related||20 September 2012||20 March 2013||23,500,000.00||
|Fourth||Non‐related||15 August 2012||15 February 2013||22,000,000.00||
|Fifth||Non‐related||16 November 2012||16 March 2013||22,000,000.00||
||Total|||||||129,500,000.00||

 (5) As at 31 December 2013, notes receivable with a carrying amount of RMB35,000,000.00 (As at 31 December2012：nil) were discounted but unexpired.
4. Accounts receivable
(1) An aged analysis of the accounts receivable as at the end of the reporting period is as follows:
2013 2012 Within 1 year 337,604,353.16 322,415,275.48 1 to 2 years 29,479,528.80 102,286,410.76 2 to 3 years 11,938,635.83 21,281,869.32 Over 3 years 57,592,940.07 52,649,356.60
436,615,457.86 498,632,912.16
Provision (56,598,137.00) (60,248,591.58)
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
380,017,320.86 438,384,320.58 The movements in provision for impairment of accounts receivable are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||Beginning balance|Addition||Deduction|||Ending balance|
|||||Reversal||Write‐off||
|2013|60,248,591.58|4,639,794.71|‐||8,290,249.29||56,598,137.00|
|2012|55,742,932.09|5,171,252.29|665,592.80||‐||60,248,591.58|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) An analysis of the accounts receivable by category as at the end of the reporting period is as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2013||||||||2012|||||||
||||Balance||||Provision||||Balance||||Provision|||
||||Amount||%||Amount||%||Amount||%||Amount||%|
|Individually significant items and analyzedindividually for provision||68,583,693.02||15.71||‐||‐||72,218,073.18||14.48||‐||‐||
|Accounts receivable analyzed as groups for provision||||||||||||||||||
|Group 1. Accounts receivable analyzed forprovision according to aging analysis||192,249,224.77||44.03||46,257,882.75||24.06||247,182,892.51||49.57||41,618,088.04||16.84||
|Group 2. Accounts receivable from relatedparties||165,442,285.82||37.89||‐||‐||160,601,442.93||32.21||‐||‐||
|Group subtotal||357,691,510.59||81.92||46,257,882.75||12.93||407,784,335.44||81.78||41,618,088.04||10.21||
|Individually insignificant items but analyzedindividually for provision||10,340,254.25||2.37||10,340,254.25||100.00||18,630,503.54||3.74||18,630,503.54||100.00||
||Total|436,615,457.86||100.00||56,598,137.00||||498,632,912.16||100.00||60,248,591.58||||

Within groups, accounts receivable analyzed for provision according to aging analysis:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Aging||2013|||||2012||||
|||Balance|||Provision||Balance|||Provision|
|||Amount||%|||Amount||%||
|Within 6 months|101,055,669.26||52.57||‐|156,497,255.65||63.31||‐|
|6 to 12 months|4,228,546.40||2.20||211,427.32|25,524,892.86||10.33||1,276,244.64|
|Within 1 year subtotal|105,284,215.66||54.77||211,427.32|182,022,148.51||73.64||1,276,244.64|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
|1 to 2 years||29,479,528.80|15.33|2,947,952.88|13,791,608.60|5.58|1,379,156.41|
|2 to 3 years||11,938,635.83|6.21|3,581,590.75|16,976,395.28|6.87|5,091,118.59|
|3 to 4 years||12,059,865.36|6.27|6,029,932.68|905,761.00|0.37|452,880.50|
|4 to 5 years||‐|‐|‐|341,456.08|0.14|273,164.86|
|Over 5 years||33,486,979.12|17.42|33,486,979.12|33,145,523.04|13.40|33,145,523.04|
||Total|192,249,224.77|100.00|46,257,882.75|247,182,892.51|100.00|41,618,088.04|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Within groups, accounts receivable analyzed for provision with other methods:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Group|||2013||||2012|||
||||Balance||Provision||Balance||Provision|
|Accounts receivable fromrelated parities||165,442,285.82||‐||160,601,442.93||‐||
||Total|165,442,285.82||‐||160,601,442.93||‐||

 As at 31 December 2013, individually insignificant items but analyzed individually for provision:
||||||||
|-|-|-|-|-|-|-|
||Details of accounts|Balance|Provision||Provision|Reason for provision|
||receivable||||Percentage||
|AUTOHAUS GOBELNORTHCLIFF(PTY)LTD||6,119,941.69|6,119,941.69|100.00||The customer close tobankruptcy and unlikely to berecover|
|FRIEDSHELF1100(PROPRIETARY)LIMITED||3,759,257.20|3,759,257.20|100.00||The customer close tobankruptcy and unlikely to berecover|
|Yuejin Import and ExportCompany||245,055.36|245,055.36|100.00||Full provision for small amountreceivables which has a longaging|
|Shanghai LianhanInternational Trading LTD||216,000.00|216,000.00|100.00||Full provision for small amountreceivables which has a longaging|
||Total|10,340,254.25|10,340,254.25||||

As at 31 December 2012, individually insignificant items but analyzed individually for provision:
||||||||
|-|-|-|-|-|-|-|
||Details of accounts|Balance|Provision||Provision|Reason for provision|
||receivable||||Percentage||
|KARAKORAMMOTORS(PVT)LTD||7,719,759.43|7,719,759.43|100.00||Lose contact with customer andunlikely to be recover|
|AUTOHAUSGOBELNORTHCLIFF (PTY) LTD||6,119,941.69|6,119,941.69|100.00||The customer close tobankruptcy and unlikely to berecover|
|WASANATRADINGLANKA(PVT)LTD||515,739.60|515,739.60|100.00||The customer broke its capitalchain due to the civil unrest andunlikely to be recover|
|FRIEDSHELF1100(PROPRIETARY)LIMITED||3,759,257.20|3,759,257.20|100.00||The customer close tobankruptcy and unlikely to berecover|
|Others||515,805.62|515,805.62|100.00||Full provision for small amountreceivables which has a longaging|
||Total|18,630,503.54|18,630,503.54||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(4) As at 31 December 2013, there is no account receivable due from shareholders that hold5% or more of the Group voting shares (As at 31 December 2012: nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(5) The provisions write off are as follows:
As at 31 December 2013, provisions written off are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||Debtors||Relationship with the Group||Amount||Reason for write‐off|
|KARAKORAMMOTORS(PVT) LTD||Non‐related||7,719,759.43||The customer is bankruptcy andunable to be recover||
|WASANA TRADING LANKA(PVT) LTD.||Non‐related||515,739.60||The customer is bankruptcy andunable to be recover||
|Others||Non‐related||54,750.26||Unable to be recover||
||Total|||8,290,249.29||||

As at 31 December 2012, there are no provisions written off.
(6) As at 31 December 2013, top five debtors of accounts receivable are as follows:
|||||||
|-|-|-|-|-|-|
|Debtors||Relationship with the Group|Amount|Aging|Proportion of total accountsreceivable (%)|
|First||Related|67,203,793.50|Within 1 year|15.39|
|Second||Non‐related|40,432,696.53|Within 1 year|9.26|
|Third||Related|28,083,882.87|Within 1 year|6.43|
|Fourth||Related|22,058,248.72|Within 1 year|5.05|
|Fifth||Related|13,994,402.88|Within 1 year|3.21|
||Total||171,773,024.50||39.34|

 As at 31 December 2012, top five debtors of accounts receivable are as follows:
|||||||
|-|-|-|-|-|-|
|Debtors||Relationship with the Group|Amount|Aging|Proportion of total accountsreceivable (%)|
|First||Related|74,538,322.68|Within 2 years|14.95|
|Second||Related|52,327,516.83|Within 1 year|10.49|
|Third||Non‐related|31,472,547.61|Within 1 year|6.31|
|Fourth||Non‐related|22,612,060.93|Within 1 year|4.53|
|Fifth||Non‐related|18,133,464.64|Within 1 year|3.64|
||Total||199,083,912.69||39.92|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(7) As at 31 December 2013, accounts receivable from related parties is asfollows：
|||||||
|-|-|-|-|-|-|
|Debtors||Relationship with the Group|Amount||Proportion of total|
||||||accounts receivable (%)|
|Changan Ford Automobile Co.||Joint venture|67,203,793.50|15.39||
|Harbin DongAn AutomotiveEngine Manufacturing Co., Ltd||Controlled by the same parentcompany|28,083,882.87|6.43||
|Changan Mazda Automobile Co.,Ltd||Joint venture|22,058,248.72|5.05||
|Changan Ford Mazda Engine Co.,Ltd.||Joint venture|13,994,402.88|3.21||
|Jiangxi Changhe Automobile Co.||Historical related party|10,322,428.89|2.36||
|Chongqing Changan KuayueAutomobile Co.||Associate|7,997,692.00|1.83||
|Jiangling Holding Co.||Joint venture|6,187,757.28|1.42||
|Chongqing Anfu Automobile SalesCo.||Controlled by the same parentcompany|3,908,410.00|0.90||
|Chongqing Changan SuzukiAutomobile Co.||Joint venture|3,401,258.46|0.78||
|China South Industry GroupFinance Co., Ltd||Controlled by the sameultimate holding company|1,985,948.00|0.45||
|Hafei Automobile Co.||Controlled by the same parentcompany|259,600.00|0.06||
|Hefei Changhe Automobile Co.(former name: Hefei ChangheAutomobile Co.)||Controlled by the same parentcompany|36,279.10|0.01||
|Chengdu Wanyou EconomicTechnological Development Co.,Ltd||Controlled by the sameultimate holding company|1,043.72|0.00||
|Yunnan Wanyou Auto Sales andService Co., Ltd||Controlled by the sameultimate holding company|895.31|0.00||
|Guizhou Wanyou Auto Sales andService Co., Ltd||Controlled by the sameultimate holding company|372.52|0.00||
|Chongqing Wanyou EconomicDevelopment Co., Ltd||Controlled by the sameultimate holding company|272.57|0.00||
||Total||165,442,285.82|37.89||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
As at 31 December 2012, accounts receivable from related parties is asfollows：
|||||||
|-|-|-|-|-|-|
|Debtors||Relationship with the Group|Amount||Proportion of total|
||||||accounts receivable (%)|
|Hafei Automobile Co.||Controlled by the same parentcompany|74,538,322.68|14.95||
|Changan Ford Automobile Co.||Joint venture|52,327,516.83|10.49||
|Chongqing Changan SuzukiAutomobile Co.||Joint venture|11,448,769.63|2.30||
|Jiangling Holding Co.||Joint venture|7,356,903.60|1.48||
|Chongqing Changan KuayueAutomobile Co.||Associate|5,532,000.00|1.11||
|Changan Industries Group Co.||Controlled by the sameultimate holding company|4,018,844.47|0.81||
|Chongqing Anfu Automobile SalesCo.||Controlled by the same parentcompany|3,099,525.00|0.62||
|Hefei Changhe Automobile Co.||Controlled by the same parentcompany|1,362,500.00|0.27||
|Jiangxi Changhe Automobile Co.||Controlled by the same parentcompany|906,667.45|0.18||
|CSIA‐Jian’an Automobile BridgeBranch||Branch of the parent company|10,020.75|0.00||
|Guizhou Wanyou Auto Sales andService Co.||Controlled by the sameultimate holding company|372.52|0.00||
||Total||160,601,442.93|32.21||

 (8) There is no accounts receivable derecognized due to transfer of financial assets during 2013 (2012: nil).
(9) As at 31 December 2013, account receivable stated in foreign currency is as follow:
|||||||||
|-|-|-|-|-|-|-|-|
||Item||Original currency||Exchange rate||Equivalent to RMB|
|USD||6,136,456.34||6.1299||37,615,863.72||

 5. Prepayments
(1) An aged analysis of the prepayments is as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Aging|||2013||||2012|||
||||Amount||Percentage (%)|Amount|||Percentage (%)|
|Within 1 year||676,952,810.56||96.88||490,444,508.86||98.28||
|1 to 2 years||14,012,869.55||2.01||6,328,709.88||1.27||
|2 to 3 years||5,490,348.60||0.79||2,252,579.73||0.45||
|Over 3 years||2,269,422.95||0.32||16,843.22||0.00||
||Total|698,725,451.66||100.00||499,042,641.69||100.00||

(2) As at 31 December 2013, top five debtors of prepayments are as follows:
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||
|-|-|-|-|-|-|-|
|Debtors|||Relationship with the|Amount|Aging|Reason for outstanding|
||||Group||||
|First||Non‐related||188,273,141.09|Within one year|Goods not received|
|Second||Non‐related||152,653,804.80|Within one year|Goods not received|
|Third||Non‐related||65,831,512.45|Within one year|Goods not received|
|Fourth||Non‐related||57,800,000.00|Within one year|Service not accepted|
|Fifth||Non‐related||34,464,493.75|Within one year|Goods not received|
||Total|||499,022,952.09|||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
As at 31 December 2012, top five debtors of prepayments are as follows:
||||||||
|-|-|-|-|-|-|-|
|Debtors|||Relationship with the|Amount|Aging|Reason for outstanding|
||||Group||||
|First||Non‐related||130,256,877.82|Within 1 year|Goods not received|
|Second||Non‐related||121,750,604.87|Within 1 year|Goods not received|
|Third||Non‐related||48,488,140.23|Within 1 year|Goods not received|
|Fourth||Non‐related||46,660,795.63|Within 1 year|Goods not received|
|Fifth||Non‐related||23,767,543.96|Within 1 year|Goods not received|
||Total|||370,923,962.51|||

Explanation for major companies of prepayments:
The Group purchase steels from Chongqing Baosteel Automobile Steel Parts Co., Ltd. and Chongqing Baojing Steel Processing and Distribution Ltd. According to the contract, the Group should fully prepay the purchase price for steels. The prepayment balance of the two above companies represented the value of goods which has been paid but not been received.
(3) As at 31 December 2013, there is no prepayment due from shareholders that hold5% or more of theCompany’s voting shares (As at 31 December 2012: nil).
(4) As at 31 December 2013, prepayments stated in foreign currency is as follow:
||||||||||
|-|-|-|-|-|-|-|-|-|
||Item|||Original currency||Exchange rate||Equivalent to RMB|
|USD|||155,211.42||6.1299||951,430.48||
|EUR|||5,489,936.19||8.4189||46,219,223.79||
|JPY|||1,121,073,053.00||0.0578||64,798,022.46||
||Tota|l|||||111,968,676.73||

 6. Dividends receivable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Beginning||Addition||Deduction||Ending|
|Within 1 year||‐||‐||‐||‐||
|Over 1 year||||||||||
|Chongqing HelpGo InformationTechnology Co., Ltd||450,030.00||‐||450,030.00||‐||
||Total|450,030.00||‐||450,030.00||‐||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
7. Other receivables
(1) An aged analysis of the other receivables as at the end of the reporting period is as follows:
2013 2012 Within 1 year 208,548,507.96 116,458,655.77 1 to 2 years 369,199.80 8,840,374.83 2 to 3 years 1,976,678.00 1,029,684.00 Over 3 years 26,560,744.00 41,699,430.13 237,455,129.76 168,028,144.73 Provision (29,445,856.41) (34,164,955.33) 208,009,273.35 133,863,189.40 The movements in provision for impairment of other receivables are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||Beginning balance|Addition||Deduction|||Ending balance|
|||||Reversal||Write‐off||
|2013|34,164,955.33|149,283.21|4,868,382.13||‐||29,445,856.41|
|2012|34,211,360.45|‐|46,405.12||‐||34,164,955.33|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) An analysis of the other receivables by category as at the end of reporting period is as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2013||||||||2012|||||||
||||Balance||||Provision||||Balance||||Provision|||
||||Amount||%||Amount||%||Amount||%||Amount||%|
|Individually significant items and analyzedindividually for provision||147,659,000.00||62.19||24,199,000.00||16.39||96,641,000.00||57.51||24,199,000.00||25.04||
|Other receivables analyzed as groups for provision||||||||||||||||||
|Group 1. Other receivables analyzed for provisionaccording to aging analysis||87,439,435.54||36.82||2,890,162.19||3.31||64,174,918.08||38.20||2,753,728.68||4.29||
|Group 2. Other receivables from related parties||‐||‐||‐||‐||‐||‐||‐||‐||
|Group subtotal||87,439,435.54||36.82||2,890,162.19||3.31||64,174,918.08||38.20||2,753,728.68||4.29||
|individually insignificant items but analyzedindividually for provision||2,356,694.22||0.99||2,356,694.22||100.00||7,212,226.65||4.29||7,212,226.65||100.00||
||Total|237,455,129.76||100.00||29,445,856.41||||168,028,144.73||100.00||34,164,955.33||||

Within groups, other receivables analyzed for provision according to aging analysis:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Aging||2013||||2012|||||
|||Balance|||Provision||Balance|||Provision|
|||Amount||%|||Amount||%||
|Within 6 months|78,712,917.52||90.02||‐|56,272,280.78||87.68||‐|
|6 to 12 months|4,018,896.22||4.60||200,944.81|1,806,536.51||2.82||90,326.83|
|Within 1 year subtotal|82,731,813.74||94.62||200,944.81|58,078,817.29||90.50||90,326.83|
|1 to 2 years|369,199.80||0.42||36,919.98|3,006,453.01||4.68||300,645.30|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
|2 to 3 years||1,976,678.00|2.26|593,003.40|1,026,684.00|1.60|308,005.20|
|3 to 4 years||600,900.00|0.69|300,450.00|10,000.00|0.02|5,000.00|
|4 to 5 years||10,000.00|0.01|8,000.00|16,062.13|0.03|12,849.70|
|Over 5 years||1,750,844.00|2.00|1,750,844.00|2,036,901.65|3.17|2,036,901.65|
||Total|87,439,435.54|100.00|2,890,162.19|64,174,918.08|100.00|2,753,728.68|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
As at 31 December 2013, individually insignificant items but analyzed individually for provision are as follows:
||||||||
|-|-|-|-|-|-|-|
|Details of other receivables||Balance|Provision||Provision|Reason for provision|
||||||Percentage (%)||
|Nanjing Dongchi AutomotiveIndustry (Group) Co., Ltd.||1,884,213.22|1,884,213.22|100.00||Whose aging is too longand unlikely to recover|
|Nanjing Qinyuan VocationalTechnical School||5,000.00|5,000.00|100.00||Not able to fulfill thepayment and unlikely torecover|
|Heibei National DefenseVocational Technical School||467,481.00|467,481.00|100.00||Whose aging is too longand unlikely to recover|
||Total|2,356,694.22|2,356,694.22||||

As at 31 December 2012, individually insignificant items but analyzed individually for provision are as follows:
||||||||
|-|-|-|-|-|-|-|
|Details of other receivables||Balance|Provision||Provision|Reason for provision|
||||||Percentage (%)||
|Nanjing Changan Industrial ParkManagement Committee||4,855,532.43|4,855,532.43|100.00||Whose aging is too longand unlikely to recover|
|Nanjing Dongchi AutomotiveIndustry (Group) Co., Ltd.||1,884,213.22|1,884,213.22|100.00||Whose aging is too longand unlikely to recover|
|Nanjing Qinyuan VocationalTechnical School||5,000.00|5,000.00|100.00||Not able to fulfill thepayment and unlikely torecover|
|Heibei National DefenseVocational Technical School||467,481.00|467,481.00|100.00||Whose aging is too longand unlikely to berecovered|
||Total|7,212,226.65|7,212,226.65||||

(3) For the year ended 2013, provision for impairment of other receivables amounted to RMB4,868,382.13 has been reversed (2012: RMB46,405.12).
(4) There is nowrite‐off of provision for bad debts during 2013 (2012: nil).
(5) As at 31 December 2013, there is no other receivables due from shareholders that hold5% or more of theCompany’s voting shares (As at 31 December 2012: nil).
(6) As at 31 December 2013, top five debtors of other receivables are as follows:
|||||||
|-|-|-|-|-|-|
|Debtors|Relationship with the Group|Amount|Aging||Proportion of total|
||||||other receivables|
||||||(%)|
|First|Non‐related|123,460,000.00|Within one year|51.99||
|Second|Non‐related|24,199,000.00|Within five years|10.19||
|Third|Non‐related|21,373,332.00|Within one year|9.00||
|Fourth|Non‐related|13,176,365.28|Within one year|5.55||
|Fifth|Non‐related|11,868,277.14|Within one year|5.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||
|-|-|-|
|Total|194,076,974.42|81.73|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
As at 31 December 2012, top five debtors of other receivables are as follows:
||||||||
|-|-|-|-|-|-|-|
|Debtors||Relationship with the Group|Amount|Aging||Proportion of total|
|||||||other receivables|
|||||||(%)|
|First||Non‐related|56,232,000.00|Within 1 year|33.47||
|Second||Non‐related|24,199,000.00|Within 5 years|14.40||
|Third||Non‐related|16,210,000.00|Within 1 year|9.65||
|Fourth||Non‐related|4,855,532.43|Within 5 years|2.89||
|Fifth||Non‐related|4,000,000.00|Within 1 year|2.38||
||Total||105,496,532.43||62.79||

 (7) As at 31 December 2013, there is no other receivables from related parties (2012: nil).
(8) As at 31 December 2013, there is no other receivables from government grant (2012: nil).
(9) There is no accounts receivable derecognized due to transfer of financial assets during 2013 (2012: nil).
8. Inventory
(1) Classification of inventory
||||||||
|-|-|-|-|-|-|-|
|Item|2013|||2012|||
||Balance|Provision|Net value|Balance|Provision|Net value|
|Raw materials|411,886,420.92|115,459,649.70|296,426,771.22|509,589,189.38|87,017,455.98|422,571,733.40|
|Material intransit|90,148,709.08|‐|90,148,709.08|134,790,174.55|‐|134,790,174.55|
|Work inprogress|633,330,653.08|53,583,639.35|579,747,013.73|633,715,476.24|5,464,558.32|628,250,917.92|
|Commoditystock|3,633,550,611.60|45,751,102.10|3,587,799,509.50|3,665,388,086.52|89,474,105.21|3,575,913,981.31|
|Consignedprocessingmaterial|2,217,155.60|‐|2,217,155.60|5,705,591.46|‐|5,705,591.46|
|Consumables|171,926,569.45|‐|171,926,569.45|138,420,956.81|‐|138,420,956.81|
|Spare parts|316,620.86|‐|316,620.86|5,376,625.21|‐|5,376,625.21|
|Total|4,943,376,740.59|214,794,391.15|4,728,582,349.44|5,092,986,100.17|181,956,119.51|4,911,029,980.66|

 (2) Provision for inventory
2013
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Type||Beginning||Provision||Deduction|||Ending|
||||||||Reversal||Write‐off||
|Raw materials||87,017,455.98||29,811,164.52||1,368,970.80||‐||115,459,649.70|
|Work in progress||5,464,558.32||49,145,075.33||303,176.60||722,817.70||53,583,639.35|
|Commodity stock||89,474,105.21||50,341,608.70||268,462.12||93,796,149.69||45,751,102.10|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
|Total|181,956,119.51|129,297,848.55|1,940,609.52|94,518,967.39|214,794,391.15|

 2012
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Type||Beginning||Provision||Deduction||||Ending|
||||||||Reversal||Write‐off|||
|Raw materials||79,345,153.65||8,163,270.38||‐||490,968.05||87,017,455.98||
|Work in progress||1,866,763.48||3,597,794.84||‐||‐||5,464,558.32||
|Commodity stock||31,865,894.90||83,810,411.44||3,631,102.82||22,571,098.31||89,474,105.21||
||Total|113,077,812.03||95,571,476.66||3,631,102.82||23,062,066.36||181,956,119.51||

 (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.
Explanation for the inventory
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.
As at 31 December 2012, finished goods of 78,638 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: 7,471 cars in Huaxia Bank; 1,051 cars in China Citic Bank; 15,810 cars in China Everbright Bank; 9,317 cars in Bank of Communications Co., Ltd; 44,989 cars in China South Industry Group Finance Co., Ltd.
9. Other current assets
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Accrual input tax||2,541,492.57||4,748,101.12||
|Others||44,245.00||26,618.00||
||Total|2,585,737.57||4,774,719.12||

 10.Available‐for‐sale financial assets
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Available‐for‐sale equity securites||257,319,416.00||233,814,100.00||

 Theavailable‐for‐sale equity securities are the 17.75 million shares (2012: 17.75 million shares) of Southwest
Securities Co., Ltd and 9.4588 million shares (2012: 7.28 million shares) of HuaXia Bank held by the Group.
||||
|-|-|-|
|Item|2013|2012|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||
|-|-|-|
|Cost of available‐for‐sale equity securities|55,716,571.71|55,716,571.71|
|Fair value|257,319,416.00|233,814,100.00|
|Accumulated amount of change on fair valuerecorded in other comprehensive income|228,722,844.29|205,217,528.29|
|Provision|27,120,000.00|27,120,000.00|

|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|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 2013
(Expressed in Renminbi Yuan)
11. Investment in joint ventures and associates
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Registered|Shareholding|Voting||||||
||Corporate|Registered|Legal||capital|percentage|percentage||||||
|Investee|type|place|representative|Nature of the business|(RMB0,000)|(%)|(%)|Total assets at end|Total liabilities at end|Total net assets at end|Total operating income|Total net profits|
|I. Joint ventures|||||||||||||
|Chongqing ChanganSuzuki AutomobileCo., Ltd|Co., Ltd.|Chongqing|Zhang Baolin|Manufacture and sale ofautomobiles, andcomponents|USD 19,000|51|51|6,457,819,911.00|3,713,905,730.00|2,743,914,181.00|8,161,887,584.00|11,085,533.00|
|Jiangling HoldingCo., Ltd|Co., Ltd|Nanchang|Xu Liuping|Manufacture and sale ofautomobiles, andcomponents|200,000|50|50|6,293,712,943.44|2,361,934,992.79|3,931,777,950.65|2,056,902,023.51|526,897,560.19|
|Changan FordAutomobile Co., Ltd|Co., Ltd|Chongqing|Xu Liuping|Manufacture and sale ofautomobiles, andcomponents|USD 24,100|50|50|37,353,802,501.00|26,916,114,430.00|10,437,688,071.00|84,166,039,672.00|8,217,819,554.00|
|Changan MazdaAutomobile Co., Ltd|Co., Ltd|Nanjing|Zhang Baolin|Manufacture and sale ofautomobiles, andcomponents|USD 11,097|50|50|7,853,883,809.08|5,521,590,525.75|2,332,293,283.33|11,711,265,328.25|99,953,317.03|
|Changan Ford MazdaEngine Co., Ltd|Co., Ltd|Nanjing|Zhang Baolin|Manufacture and sale ofautomobiles, andcomponents|USD 20,996|50|50|3,124,637,847.65|1,917,316,946.23|1,207,320,901.42|3,566,681,537.83|243,865,881.85|
|Changan PSAAutomobiles Co., Ltd(Note)|Co., Ltd|Shenzhen|Xu Liuping|Manufacture and sale ofautomobiles, andcomponents|400,000|50|50|7,211,670,078.00|4,496,792,330.00|2,714,877,748.00|571,468,251.00|(797,589,413.00)|
|II. Associates|||||||||||||
|Chongqing XiyiAutomobile LinkageRod Co., Ltd|Co., Ltd|Chongqing|Pang Guoqiang|Develop, manufactory, saleof linkage rod|1,900|40|40|35,011,312.89|13,326,471.58|21,684,841.31|42,573,826.60|892,591.37|
|Chongqing ChanganKuayue AutomobileCo., Ltd|Co., Ltd|Chongqing|Luo Zhilong|Develop, product and sale ofautomobile andcomponents; import andexport goods.|6,533|34.30|34.30|1,090,049,035.78|952,835,677.71|137,213,358.07|2,085,667,421.75|(1,836,163.59)|
|Chongqing ChanganKuayue AutomobileSales Co., Ltd|Co., Ltd|Chongqing|Luo Zhilong|Sale of Changan Kuayue’ sautomobile and agriculturalcars and components.Technical advisory servicesfor automobile|300|34.30|34.30|323,515,350.54|388,938,232.98|(65,422,882.44)|1,619,507,316.32|15,003,953.98|
|Beijing Fang’an TaxiCo., Ltd|Co., Ltd|Beijing|Li Gang|Regional taxi operation|1,420|42.25|42.25|28,088,454.71|25,726,017.69|2,362,437.02|3,515,459.73|(7,009,236.93)|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Note：According to the stock acquisition agreement signed by the Company with China Changan. The price and transaction fee total amounted to RMB2,007,841,700.00 was recognized as the original cost oflong‐term equity investment. The Company holds50% equity of CAPSA, and it became a joint venture of the Company.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
12.Long‐term equity investments
2013
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Initial amount|Beginning|Addition/ (deduction)|Ending|Shareholdingpercentage(%)|Votingpercentage(%)||Explanation for|Impairment|Currentprovision|Current cashdividends|
||||||||||the difference||||
||||||||||between||||
||||||||||shareholding||||
||||||||||percentage||||
||||||||||and voting||||
||||||||||percentage||||
|Joint ventures|||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd|Equity|239,905,266.00|1,421,953,088.21|917,918.98|1,422,871,007.19|51.00|51.00|N/A||‐|‐|‐|
|Jiangling Holding Co., Ltd|Equity|1,000,000,000.00|1,706,722,325.52|263,346,186.29|1,970,068,511.81|50.00|50.00|N/A||‐|‐|‐|
|Changan Ford AutomobileCo., Ltd|Equity|951,589,136.29|2,677,677,911.23|2,491,202,560.31|5,168,880,471.54|50.00|50.00|N/A||‐|‐|1,600,000,000.00|
|Changan Mazda AutomobileCo., Ltd|Equity|1,097,839,635.00|1,115,310,608.80|49,976,658.52|1,165,287,267.32|50.00|50.00|N/A|||||
|Changan Ford Mazda EngineCo., Ltd|Equity|786,734,634.10|475,236,298.82|124,232,371.10|599,468,669.92|50.00|50.00|N/A||‐|‐|‐|
|Changan PSAAutomobiles Co., Ltd|Equity|2,007,841,700.00|‐|1,957,257,672.14|1,957,257,672.14|50.00|50.00|N/A||‐|‐|‐|
|Associates|||||||||||||
|Chongqing HelpGoInformation TechnologyCo., Ltd|Equity|4,500,000.00|10,316,211.80|(10,316,211.80)|‐|0.00|0.00|N/A||‐|‐|‐|
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd|Equity|6,714,720.64|8,415,002.53|357,036.55|8,772,039.08|40.00|40.00|N/A||‐|‐|‐|
|Chongqing Changan KuayueAutomobile Co., Ltd|Equity|61,800,885.00|63,870,734.11|197,511.89|64,068,246.00|34.30|34.30|N/A||‐|‐|‐|
|Chongqing Changan KuayueAutomobile Sales Co., Ltd|Equity|1.00|‐|‐|‐|34.30|34.30|N/A||‐|‐|‐|
|Beijing Fang’an taxi Co., Ltd|Equity|6,000,000.00|6,000,000.00|(5,001,370.36)|998,629.64|42.25|42.25|N/A||‐|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Accountingmethod|Initial amount|Beginning|Addition/ (deduction)|Ending|Shareholdingpercentage(%)|Votingpercentage(%)||Explanation for|Impairment|Currentprovision|Current cashdividends|
|||||||||||the difference||||
|||||||||||betweenshareholding||||
|||||||||||percentageand voting||||
|||||||||||percentage||||
|Other||||||||||||||
|China South Industry GroupFinance Co., Ltd||Cost|80,000,000.00|80,000,000.00|‐|80,000,000.00|5.33|5.33|N/A||‐||23,413,203.42|
|Chongqing Ante Import andExport Co., Ltd||Cost|3,000,000.00|3,000,000.00|‐|3,000,000.00|10.00|10.00|N/A||‐|‐|3,600,000.00|
|Sichuan Glass Co., Ltd||Cost|1,809,274.00|1,809,274.00|‐|1,809,274.00|0.64|0.64|N/A||‐|‐|‐|
|Zhong Fa Lian InvestmentCo., Ltd||Cost|21,000,000.00|21,000,000.00|‐|21,000,000.00|10.00|10.00|N/A||‐|‐|‐|
|CAERI(Beijing) automotiveLightweight TechnologyResearch Institution Co.,Ltd||Cost|3,000,000.00|3,000,000.00|‐|3,000,000.00|6.89|6.89|N/A||‐|‐|‐|
||Total|－|6,271,735,252.03|7,594,311,455.02|4,872,170,333.62|12,466,481,788.64|‐‐|‐‐|‐‐||‐|‐|1,627,013,203.42|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2012
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Initial amount|Beginning|Addition/ (deduction)|Ending|Shareholdingpercentage(%)|Votingpercentage(%)|Explanation for thedifference betweenshareholdingpercentage andvoting percentage|Impairment||Cur|Current cash dividends|
||||||||||||ren||
||||||||||||t||
||||||||||||pro||
||||||||||||visi||
||||||||||||on||
|Joint ventures|||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd|Equity|239,905,266.00|1,372,612,641.40|49,340,446.81|1,421,953,088.21|51.00|51.00|N/A|‐|‐||‐|
|Jiangling Holding Co., Ltd|Equity|1,000,000,000.00|1,492,969,790.10|213,752,535.42|1,706,722,325.52|50.00|50.00|N/A|‐|‐||‐|
|Changan Ford AutomobileCo., Ltd|Equity|951,589,136.29|4,011,538,873.50|(1,333,860,962.27)|2,677,677,911.23|50.00|50.00|N/A|‐|‐||1,800,000,000.00|
|Changan Mazda AutomobileCo., Ltd|Equity|1,097,839,635.00|‐|1,115,310,608.80|1,115,310,608.80|50.00|50.00|N/A|||||
|Changan Ford Mazda EngineCo., Ltd|Equity|786,734,634.10|343,195,182.39|132,041,116.43|475,236,298.82|50.00|50.00|N/A|‐|‐||‐|
|Associates|||||||||||||
|Chongqing HelpGoInformation Technology Co.,Ltd|Equity|4,500,000.00|11,776,292.44|(1,460,080.64)|10,316,211.80|21.43|21.43|N/A|‐|‐||‐|
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd|Equity|6,714,720.64|7,664,634.71|750,367.82|8,415,002.53|40.00|40.00|N/A|‐|‐||‐|
|Chongqing Changan KuayueAutomobile Co., Ltd|Equity|61,800,885.00|61,800,885.00|2,069,849.11|63,870,734.11|34.30|34.30|N/A|‐|‐||‐|
|Chongqing Changan KuayueAutomobile Sales Co., Ltd|Equity|1.00|1.00|(1.00)|‐|34.30|34.30|N/A|‐|‐||‐|
|Beijing Fangan Taxi LLC|Equity|6,000,000.00|‐|6,000,000.00|6,000,000.00|42.25|42.25|N/A|‐|‐||‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Accountingmethod|Initial amount|Beginning|Addition/ (deduction)|Ending|Shareholdingpercentage (%)|Votingpercentage(%)||Explanation for the|Impairment|Currentprovision|Current cash dividends|
|||||||||||difference between||||
|||||||||||shareholding||||
|||||||||||percentage and||||
|||||||||||voting percentage||||
|Other||||||||||||||
|China South Industry GroupFinance Co., Ltd||Cost|80,000,000.00|80,000,000.00|‐|80,000,000.00|5.33|5.33|N/A||‐||6,000,000.00|
|Chongqing Ante Import andExport Co., Ltd||Cost|3,000,000.00|3,000,000.00|‐|3,000,000.00|10.00|10.00|N/A||‐|‐|‐|
|Sichuan Glass Co., Ltd||Cost|1,809,274.00|1,809,274.00|‐|1,809,274.00|0.64|0.64|N/A||‐|‐|‐|
|Zhong Fa Lian InvestmentCo., Ltd||Cost|21,000,000.00|21,000,000.00|‐|21,000,000.00|10.00|10.00|N/A||‐|‐|‐|
|CAERI(Beijing) automotiveLightweight TechnologyResearch Institution Co.,Ltd||Cost|3,000,000.00|‐|3,000,000.00|3,000,000.00|6.89|6.89|N/A||‐|‐|‐|
||Total|－|4,263,893,552.03|7,407,367,574.54|186,943,880.48|7,594,311,455.02|‐‐|‐‐|‐‐||‐|‐|1，806,000,000.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
13. Investment property
2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
||I. Original cost|1,461,121.65||‐||‐||1,461,121.65||
|1. Buildings||1,461,121.65||‐||‐||1,461,121.65||
||II. Accumulated|379,556.14||75,298.14||‐||454,854.28||
||depreciation and|||||||||
||amortization|||||||||
|1. Buildings||379,556.14||75,298.14||‐||454,854.28||
||III. Net Value|1,081,565.51||(75,298.14)||‐||1,006,267.37||
|1. Buildings||1,081,565.51||(75,298.14)||‐||1,006,267.37||
||IV. Impairment Provision|‐||‐||‐||‐||
|1. Buildings||‐||‐||‐||‐||
||V. Book Value|1,081,565.51||(75,298.14)||‐||1,006,267.37||
|1. Buildings||1,081,565.51||(75,298.14)||‐||1,006,267.37||

 2012
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
||I. Original cost|84,210,075.73||‐||82,748,954.08||1,461,121.65||
|1. Buildings||37,521,741.65||‐||36,060,620.00||1,461,121.65||
|2. Land use right||46,688,334.08||‐||46,688,334.08||‐||
||II. Accumulated|22,859,697.48||2,372,133.45||24,852,274.79||379,556.14||
||depreciation and|||||||||
||amortization|||||||||
|1. Buildings||12,008,921.83||1,517,007.31||13,146,373.00||379,556.14||
|2. Land use right||10,850,775.65||855,126.14||11,705,901.79||‐||
||III. Net Value|61,350,378.25||(2,372,133.45)||57,896,679.29||1,081,565.51||
|1. Buildings||25,512,819.82||(1,517,007.31)||22,914,247.00||1,081,565.51||
|2. Land use right||35,837,558.43||(855,126.14)||34,982,432.29||‐||
||IV. Impairment Provision|‐||‐||‐||‐||
|1. Buildings||‐||‐||‐||‐||
|2. Land use right||‐||‐||‐||‐||
||V. Book Value|61,350,378.25||(2,372,133.45)||57,896,679.29||1,081,565.51||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||
|-|-|-|-|-|
|1. Buildings|25,512,819.82|(1,517,007.31)|22,914,247.00|1,081,565.51|
|2. Land use right|35,837,558.43|(855,126.14)|34,982,432.29|‐|

 During 2013, the depreciation and amortization of Investment property is RMB75,298.14 (2012: RMB2,372,133.45).
There is no provision of impairment for investment property in 2013 (2012: nil).
As at 31 December 2013, there is no investment property whose certificate of title is not completed (As at 31 December 2012, nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
14. Fixed assets
(1) Details of fixed assets
2013
||||||
|-|-|-|-|-|
|Item|Beginning|Addition|Deduction|Ending|
|I. Original cost|16,258,099,971.47|3,573,200,290.92|215,530,595.58|19,615,769,666.81|
|Buildings|4,286,333,649.59|878,745,596.45|4,022,322.31|5,161,056,923.73|
|Machinery|8,976,657,582.81|2,143,166,646.73|151,323,706.00|10,968,500,523.54|
|Vehicles|85,639,239.66|23,175,074.55|7,394,687.29|101,419,626.92|
|Other Equipments|2,909,469,499.41|528,112,973.19|52,789,879.98|3,384,792,592.62|
|II. Accumulated|4,226,045,092.87|1,303,650,347.30|84,698,221.59|5,444,997,218.58|
|depreciation|||||
|Buildings|523,214,966.12|154,051,191.55|1,022,218.13|676,243,939.54|
|Machinery|2,700,569,268.32|889,655,937.25|36,095,737.70|3,554,129,467.87|
|Vehicles|34,536,471.47|9,282,996.81|5,330,202.62|38,489,265.66|
|Other Equipments|967,724,386.96|250,660,221.69|42,250,063.14|1,176,134,545.51|
|III. Net Value|12,032,054,878.60|2,269,549,943.62|130,832,373.99|14,170,772,448.23|
|Buildings|3,763,118,683.47|724,694,404.90|3,000,104.18|4,484,812,984.19|
|Machinery|6,276,088,314.49|1,253,510,709.48|115,227,968.30|7,414,371,055.67|
|Vehicles|51,102,768.19|13,892,077.74|2,064,484.67|62,930,361.26|
|Other Equipments|1,941,745,112.45|277,452,751.50|10,539,816.84|2,208,658,047.11|
|IV. Impairment|404,986,769.82|137,263,574.26|112,241,272.10|430,009,071.98|
|Provision|||||
|Buildings|‐|790,453.56|‐|790,453.56|
|Machinery|392,456,946.40|109,739,156.84|111,634,487.24|390,561,616.00|
|Vehicles|‐|55,086.70|‐|55,086.70|
|Other Equipments|12,529,823.42|26,678,877.16|606,784.86|38,601,915.72|
|V. Book Value|11,627,068,108.78|2,132,286,369.36|18,591,101.89|13,740,763,376.25|
|Buildings|3,763,118,683.47|723,903,951.34|3,000,104.18|4,484,022,530.63|
|Machinery|5,883,631,368.09|1,143,771,552.64|3,593,481.06|7,023,809,439.67|
|Vehicles|51,102,768.19|13,836,991.04|2,064,484.67|62,875,274.56|
|Other Equipments|1,929,215,289.03|250,773,874.34|9,933,031.98|2,170,056,131.39|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2012
|||||||
|-|-|-|-|-|-|
|Item||Beginning|Addition|Deduction|Ending|
|I. Original cost||11,239,242,277.59|5,157,906,561.69|139,048,867.81|16,258,099,971.47|
|Buildings||2,491,847,341.14|1,794,486,308.45|‐|4,286,333,649.59|
|Machinery||6,492,143,885.80|2,597,142,390.44|112,628,693.43|8,976,657,582.81|
|Vehicles||68,411,425.64|20,556,632.30|3,328,818.28|85,639,239.66|
|Other Equipments||2,186,839,625.01|745,721,230.50|23,091,356.10|2,909,469,499.41|
|II. Accumulated||3,381,635,446.79|911,988,143.23|67,578,497.15|4,226,045,092.87|
|depreciation||||||
|Buildings||383,489,547.96|139,725,418.16|‐|523,214,966.12|
|Machinery||2,175,657,007.65|571,825,930.69|46,913,670.02|2,700,569,268.32|
|Vehicles||28,818,814.67|8,150,174.06|2,432,517.26|34,536,471.47|
|Other Equipments||793,670,076.51|192,286,620.32|18,232,309.87|967,724,386.96|
|III. Net Value||7,857,606,830.80|4,245,918,418.46|71,470,370.66|12,032,054,878.60|
|Buildings||2,108,357,793.18|1,654,760,890.29|‐|3,763,118,683.47|
|Machinery||4,316,486,878.15|2,025,316,459.75|65,715,023.41|6,276,088,314.49|
|Vehicles||39,592,610.97|12,406,458.24|896,301.02|51,102,768.19|
|Other Equipments||1,393,169,548.50|553,434,610.18|4,859,046.23|1,941,745,112.45|
|IV. Impair|ment|315,469,242.91|153,192,851.11|63,675,324.20|404,986,769.82|
|Provision||||||
|Buildings||‐|‐|‐|‐|
|Machinery||306,665,047.71|148,626,821.29|62,834,922.60|392,456,946.40|
|Vehicles||‐|‐|‐|‐|
|Other Equipments||8,804,195.20|4,566,029.82|840,401.60|12,529,823.42|
|V. Book Value||7,542,137,587.89|4,092,725,567.35|7,795,046.46|11,627,068,108.78|
|Buildings||2,108,357,793.18|1,654,760,890.29|‐|3,763,118,683.47|
|Machinery||4,009,821,830.44|1,876,689,638.46|2,880,100.81|5,883,631,368.09|
|Vehicles||39,592,610.97|12,406,458.24|896,301.02|51,102,768.19|
|Other Equipments||1,384,365,353.30|548,868,580.36|4,018,644.63|1,929,215,289.03|

 During 2013, the depreciation of fixed assets is RMB1,303,650,347.30 (2012: RMB898,841,770.23).
During 2013, the fixed assets amounted to RMB3,416,091,497.77 (2012: RMB4,084,965,021.13) have been transferred from construction in progress.
As at 31 December 2013, buildings with the book value of RMB15,275,072.70 (As at 31 December 2012:
RMB171,358,422.99), and machinery with the book value of RMB66,878,702.12 (2012: RMB234,920,690.41) is
restricted to get the bank facilities. Including, the restricted buildings with book value of RMB4,632,076.69 (As
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
at 31 December 2012: 93,990,396.88) and the restricted machinery with book value of RMB28,637,786.47 (As at 31 December 2012: 28,800,385.56) was mortgaged to obtain loans, refer to Note V 24.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) Fixed assets that are temporarily unused
2013
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Original cost||Accumulated||Impairment|Book value|Note|
|||||depreciation||provision|||
|Buildings||985,314.88|277,385.94||707,928.94||‐||
|Machinery||573,238,604.41|270,947,953.32||302,260,321.47||30,329.62||
|Vehicles||78,185.00|2,369.02||75,815.98||‐||
|Other Equipments||117,333,599.20|78,961,621.97||38,331,888.44||40,088.79||
||Total|691,635,703.49|350,189,330.25||341,375,954.83||70,418.41||

2012
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Original cost||Accumulated||Impairment|Book value|Note|
|||||depreciation||provision|||
|Machinery||415,709,534.85|125,442,635.51||290,009,749.27||257,150.07||
|Other Equipments||28,686,083.39|16,156,259.97||12,529,823.42||‐||
||Total|444,395,618.24|141,598,895.48||302,539,572.69||257,150.07||

(3) As at 31 December 2013, 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 2012: Nil).
(4) Fixed assets whose certificate of title is not completed
||||||
|-|-|-|-|-|
|Item||Reason for incomplete||Estimate time for completion of|
|||certificate of title||certificate of title|
|Painting plant|Under processing||2014||
|Welding plant|Under processing||2014||
|Assemble plant|Under processing||2014||
|Stamping plant|Under processing||2014||
|Painting workshop|Under processing||2014||
|The second phase Assemble workshop|Under processing||2014||
|New Energy and trial plant|Under processing||2014||
|Packaging plant|Under processing||2014||
|Employees center and dormitory|Under processing||2014||
|Office building|Under processing||2014||
|Welding workshop in factory 5th|Under processing||2014||
|Second plant|Under processing||2014||
|Casting plant for the first phase of EA project|Under processing||2014||
|Assemble plant for the second phase of EA project|Under processing||2014||
|Power station|Under processing||2014||
|Assembly trial and detection workshop|Under processing||2014||
|Visual inspection plant|Under processing||2014||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||
|-|-|-|-|
|Exhibition Centre||Under processing|2014|
|Sewage treatment station||Under processing|2014|
|Building for vehicle safety department in factory 5th||Under processing|2014|
|Stamping workshop in factory 5th||Under processing|2014|
|Visual inspection plant in factory 5th||Under processing|2014|
|Welding and painting plant in new area of Baoding ChanganBus||Under processing|2014|
||Total|||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
15. Construction in progress
(1) Details of construction in progress
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2013||||||2012|||||
||||Balance||Provision||Book value|Balance|||Provision||Book value|
|Mini‐bus production equipment||50,083,620.26||‐||50,083,620.26||5,351,731.68||‐||5,351,731.68||
|Yuzui motor city project||3,340,635.09||‐||3,340,635.09||44,396,939.00||‐||44,396,939.00||
|Changan industrial garden project||636,361.71||‐||636,361.71||8,980,021.25||‐||8,980,021.25||
|Sedan production equipment||42,419,237.65||‐||42,419,237.65||48,529,810.27||‐||48,529,810.27||
|Engine production||90,556,793.45||‐||90,556,793.45||1,356,956,576.22||‐||1,356,956,576.22||
|Vehicle research institution||69,250,097.06||‐||69,250,097.06||133,651,791.31||‐||133,651,791.31||
|Car moulds||356,844,644.42||‐||356,844,644.42||226,624,484.08||‐||226,624,484.08||
|Hebei M201 bus production plant project||‐||‐||‐||36,064,353.60||‐||36,064,353.60||
|Light vehicle technical transformation project ofBaoding Changan bus||56,020,860.61||‐||56,020,860.61||6,302,795.17||‐||6,302,795.17||
|Plant for vehicle test project||541,058,623.64||‐||541,058,623.64||688,512,568.10||‐||688,512,568.10||
|Beijing vehicle construction project||40,243,489.44||‐||40,243,489.44||26,246,205.34||‐||26,246,205.34||
|Others||78,319,393.72||‐||78,319,393.72||223,711,610.04||‐||223,711,610.04||
||Total|1,328,773,757.05||‐||1,328,773,757.05||2,805,328,886.06||‐||2,805,328,886.06||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) Significant movements of construction in progress
2013
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Project|Budget|31 December, 2012|Addition|Transfer to fixed|Other|The project|Progress|Accumulated|Including:|Current|Source|31 Decemebr, 2013|
||(RMB0,000)|||assets|deduction|investments’|of|capitalized|Current|capitalizati|of||
|||||||proportion of|constructi|interest|capitalized|on rate|funds||
|||||||budget|on||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 city project|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 production|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 technicaltransformation projectof Baoding ChanganBus|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 vehicleconstruction project|191,943.00|26,246,205.34|46,370,322.93|32,373,038.83|‐|100%|98%|‐|‐|‐|Raised|40,243,489.44|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Others|‐|223,711,610.04|188,251,813.31|333,309,940.74|334,088.89|‐|‐|4,888,488.22|2,814,221.50|6.15%|Raisedandloans|78,319,393.72|
|Total||2,805,328,886.06|1,944,491,242.55|3,416,091,497.77|4,954,873.79|‐|‐|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 2013
(Expressed in Renminbi Yuan)
2012
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Project|Budget|31 December, 2011|Addition|Transfer to fixed|Other|The project|Progress|Accumulated|Including: Current|Current|Source|31 December, 2012|
||(RMB0,000)|||assets|deduction|investments’|of|capitalized|capitalized|capitaliza|of funds||
|||||||proportion of|constructi|interest|interest|tion rate|||
|||||||budget|on||||||
|Mini‐bus productionequipment|99,270.00|3,229,748.52|12,576,296.54|10,454,313.38|‐|100%|99%|412,957.05|‐|‐|Raised|5,351,731.68|
|Yuzui motor city project|157,735.00|61,729,037.54|284,535,757.47|301,865,230.01|2,626.00|85%|85%|‐|‐|‐|Raised|44,396,939.00|
|Changan industrialgarden project|149,031.00|99,207,943.92|6,609,168.14|96,837,090.81|‐|95%|95%|19,943,614.65|‐|‐|Raised|8,980,021.25|
|Sedan productionequipment|81,671.00|96,863,650.79|54,676,594.19|103,010,434.71|‐|60%|60%|505,924.12|‐|‐|Raised|48,529,810.27|
|Engine production|422,611.20|676,224,425.42|1,925,829,791.20|1,244,752,771.27|344,869.13|60%|60%|12,926,342.81|‐|‐|Raised|1,356,956,576.22|
|Vehicle researchinstitution|71,400.00|238,530,573.53|66,568,952.96|171,447,735.18|‐|83%|80%|863,669.92|‐|‐|Raised|133,651,791.31|
|Car moulds|63,501.54|173,514,613.60|312,171,782.82|259,061,912.34|‐|93%|93%|3,397,900.43|‐|‐|Raised|226,624,484.08|
|Hebei M201 busproduction plantproject|26,811.97|101,201,173.86|91,651,414.20|156,788,234.46|‐|86%|86%|‐|‐|‐|Raised|36,064,353.60|
|Light vehicle technicaltransformation projectof Baoding ChanganBus|22,442.00|‐|6,302,795.17|‐|‐|3%|3%|‐|‐|‐|Raised|6,302,795.17|
|Plant for vehicle testproject|22,442.00|417,378,969.64|271,160,265.13|26,666.67|‐|57%|60%|‐|‐|‐|Raised|688,512,568.10|
|Beijing vehicleconstruction project|108,688.00|655,945,083.74|784,185,925.91|1,410,862,737.50|3,022,066.81|93%|93%|‐|‐|‐|Raised|26,246,205.34|
|Others|191,943.00|271,711,688.42|282,633,778.06|329,857,894.80|775,961.64|‐||2,074,266.72|2,074,266.72|6.15%|Raisedandloans|223,711,610.04|
|Total||2,795,536,908.98|4,098,902,521.79|4,084,965,021.13|4,145,523.58|‐||40,124,675.70|2,074,266.72|||2,805,328,886.06|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(3) As at 31 December 2013, there is no provision for the impairment of construction in progress (As at 31 December 2012: Nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
16. Construction materials
||||||
|-|-|-|-|-|
|Item|2012|Addition|Deduction|2013|
|Specific materials|795,898.75|‐|699,208.00|96,690.75|
|Total|795,898.75|‐|699,208.00|96,690.75|

 17. Intangible assets
2013
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Item|||Beginning||Addition||Deduction||Ending|
||I. Original cost||2,805,844,487.97||293,577,422.45||8,603,699.66||3,090,818,210.76||
|Land use rights|||1,306,396,390.02||46,845,247.74||8,603,699.66||1,344,637,938.10||
|Software use rights|||188,173,048.93||63,967,908.26||‐||252,140,957.19||
|Trademark use rights|||211,784,400.00||‐||‐||211,784,400.00||
|Non‐patent technology|||1,099,490,649.02||182,764,266.45||‐||1,282,254,915.47||
||II. Accumulated||656,863,294.33||299,573,420.02||537,456.00||955,899,258.35||
||amortization||||||||||
|Land use rights|||86,198,348.38||26,757,879.43||537,456.00||112,418,771.81||
|Software use rights|||146,627,088.97||39,072,340.53||‐||185,699,429.50||
|Trademark use rights|||60,012,611.01||19,956,613.28||‐||79,969,224.29||
|Non‐patent technology|||364,025,245.97||213,786,586.78||‐||577,811,832.75||
||III. Net|Value|2,148,981,193.64||(5,995,997.57)||8,066,243.66||2,134,918,952.41||
|Land use rights|||1,220,198,041.64||20,087,368.31||8,066,243.66||1,232,219,166.29||
|Software use rights|||41,545,959.96||24,895,567.73||‐||66,441,527.69||
|Trademark use rights|||151,771,788.99||(19,956,613.28)||‐||131,815,175.71||
|Non‐patent technology|||735,465,403.05||(31,022,320.33)||‐||704,443,082.72||
||IV. Impairment Provision||15,826,515.83||67,050,144.96||6,700,000.00||76,176,660.79||
|Land use rights|||6,700,000.00||‐||6,700,000.00||‐||
|Software use rights|||‐||‐||‐||‐||
|Trademark use rights|||‐||‐||‐||‐||
|Non‐patent technology|||9,126,515.83||67,050,144.96||‐||76,176,660.79||
||V. Book Value||2,133,154,677.81||(73,046,142.53)||1,366,243.66||2,058,742,291.62||
|Land use rights|||1,213,498,041.64||20,087,368.31||1,366,243.66||1,232,219,166.29||
|Software use rights|||41,545,959.96||24,895,567.73||‐||66,441,527.69||
|Trademark use rights|||151,771,788.99||(19,956,613.28)||‐||131,815,175.71||
|Non‐patent technology|||726,338,887.22||(98,072,465.29)||‐||628,266,421.93||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2012
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Item|||Beginning||Addition||Deduction||Ending|
||I. Original cost||2,211,127,833.78||594,716,654.19||‐||2,805,844,487.97||
|Land use rights|||1,259,708,056.02||46,688,334.00||‐||1,306,396,390.02||
|Software use rights|||158,164,125.63||30,008,923.30||‐||188,173,048.93||
|Trademark use rights|||211,770,000.00||14,400.00||‐||211,784,400.00||
|Non‐patent technology|||581,485,652.13||518,004,996.89||‐||1,099,490,649.02||
||II. Accumulated||382,328,408.50||274,534,885.83||‐||656,863,294.33||
||amortization||||||||||
|Land use rights|||46,373,015.58||39,825,332.80||‐||86,198,348.38||
|Software use rights|||94,079,259.78||52,547,829.19||‐||146,627,088.97||
|Trademark use rights|||40,061,278.54||19,951,332.47||‐||60,012,611.01||
|Non‐patent technology|||201,814,854.60||162,210,391.37||‐||364,025,245.97||
||III. Net|Value|1,828,799,425.28||320,181,768.36||‐||2,148,981,193.64||
|Land use rights|||1,213,335,040.44||6,863,001.20||‐||1,220,198,041.64||
|Software use rights|||64,084,865.85||(22,538,905.89)||‐||41,545,959.96||
|Trademark use rights|||171,708,721.46||(19,936,932.47)||‐||151,771,788.99||
|Non‐patent technology|||379,670,797.53||355,794,605.52||‐||735,465,403.05||
||IV. Impairment Provision||6,700,000.00||9,126,515.83||‐||15,826,515.83||
|Land use rights|||6,700,000.00||‐||‐||6,700,000.00||
|Software use rights|||‐||‐||‐||‐||
|Trademark use rights|||‐||‐||‐||‐||
|Non‐patent technology|||‐||9,126,515.83||‐||9,126,515.83||
||V. Book Value||1,822,099,425.28||311,055,252.53||‐||2,133,154,677.81||
|Land use rights|||1,206,635,040.44||6,863,001.20||‐||1,213,498,041.64||
|Software use rights|||64,084,865.85||(22,538,905.89)||‐||41,545,959.96||
|Trademark use rights|||171,708,721.46||(19,936,932.47)||‐||151,771,788.99||
|Non‐patent technology|||379,670,797.53||346,668,089.69||‐||726,338,887.22||

 During 2013, the amortization of intangible assets is RMB299,573,420.02 (2012: RMB262,828,984.04).
As at 31 December 2013, land use rights with the book value of RMB93,334,584.97 (as at 31 December 2012: RMB119,826,789.52) are restricted to get the bank facilities. During 2013, the amortization of the land use rights is RMB3,794,132.27 (2012: RMB4,567,361.67). Including, the restricted land use rights with the book value of RMB2,613,529.28 (2012: RMB91,285,024.74) was mortgaged to obtain loans. Refer to note V 24.
18. Development expenditure
2013
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
|Item||31 December 2012|Addition||Deduction||31 December 2013|
|||||C|harged to income|Recognized asintangible assets||
||||||Statement of the|||
||||||Current period|||
|AutomobileDevelopment||373,059,730.66|515,162,564.44|19,791,424.17||182,764,266.45|685,666,604.48|
||Total|373,059,730.66|515,162,564.44|19,791,424.17||182,764,266.45|685,666,604.48|

 2012
|||||||||
|-|-|-|-|-|-|-|-|
|Item||31 December 2011|Addition||Deduction||31 December 2012|
|||||C|harged to income|Recognized asintangible assets||
||||||Statement of the|||
||||||Current period|||
|AutomobileDevelopment||426,379,528.16|531,435,083.19|66,749,883.80||518,004,996.89|373,059,730.66|
||Total|426,379,528.16|531,435,083.19|66,749,883.80||518,004,996.89|373,059,730.66|

 In 2013, development expenditure accounts for31.78% of total research and development expenditure (as at 31 December 2012:31.35%).
As at 31 December 2013, development expenditure recognized as intangible assets accounts for30.52% of total intangible assets (as at 31 December 2012:34.05%).
19. Goodwill
2013
|||||||
|-|-|-|-|-|-|
|Investee|31 December 2012|Addition|Deduction|31 December 2013|Impairmentprovision|
|Hebei ChanganAutomobile Co., Ltd|9,804,394.00|‐|‐|9,804,394.00|‐|
|Nanjing ChanganAutomobile Co., Ltd|73,465,335.00|‐|‐|73,465,335.00|73,465,335.00|
|Total|83,269,729.00|‐|‐|83,269,729.00|73,465,335.00|

 2012
|||||||
|-|-|-|-|-|-|
|Investee|31 December 2011|Addition|Deduction|31 December 2012|Impairmentprovision|
|Hebei ChanganAutomobile Co., Ltd|9,804,394.00|‐|‐|9,804,394.00|‐|
|Nanjing ChanganAutomobile Co., Ltd|73,465,335.00|‐|‐|73,465,335.00|73,465,335.00|
|Total|83,269,729.00|‐|‐|83,269,729.00|73,465,335.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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.
20.Long‐term deferred expenses
2013
||||||
|-|-|-|-|-|
|Item|Beginning|Addition|Amortization|Ending|
|Gaobao Lake Reservir Greening|720,320.00|‐|180,080.00|540,240.00|
|Others|1,334,844.45|1,194,167.19|1,659,022.88|869,988.76|
|Total|2,055,164.45|1,194,167.19|1,839,102.88|1,410,228.76|

 2012
||||||
|-|-|-|-|-|
|Item|Beginning|Addition|Amortization|Ending|
|Gaobao Lake Reservir Greening|900,400.00|‐|180,080.00|720,320.00|
|Others|1,168,756.74|1,407,002.35|1,240,914.64|1,334,844.45|
|Total|2,069,156.74|1,407,002.35|1,420,994.64|2,055,164.45|

 21. Deferred tax assets and liabilities
Deferred tax assets and liabilities are listed separately.
(1) Recognized deferred tax assets and liabilities:
|||||
|-|-|-|-|
|Item||2013|2012|
|Deferred tax assets||||
|Provision for the impairment of assets|96,999,755.02||89,752,749.14|
|Accrued expenses and contingent liabilities|390,797,090.37||283,175,938.14|
|Unpaid tech development expense andadvertisement expense|39,626,338.17||32,703,826.49|
|Deferred income|363,604,776.91||350,416,972.76|
|Unpaid salary and bonus and others|107,407,841.52||103,217,699.67|
|Subtotal|998,435,801.99||859,267,186.20|
|Deferred tax liabilities||||
|Available‐for‐sale financial assets on thechanges in fair value|41,842,961.06||37,741,632.06|

(2) The deductible loss of unrecognized deferred tax assets and the maturity:
||||||
|-|-|-|-|-|
|Year||2013||2012|
|2013|‐||121,605,072.56||
|2014|9,499,981.79||9,499,981.79||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||
|-|-|-|-|
|2015||‐|‐|
|2016||298,254,160.23|298,254,160.23|
|2017||284,843,562.52|300,793,298.37|
|2018||338,699,078.28|‐|
||Total|931,296,782.82|730,152,512.95|

 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 2013
(Expressed in Renminbi Yuan)
(3) The temporary differences related to assets and liabilities which caused the temporary
differences
||||
|-|-|-|
|Item|2013|2012|
|Taxable temporary difference|||
|Provision for the impairment of assets|646,665,033.44|592,570,375.83|
|Accrued expenses and contingent liabilities|2,605,313,935.79|1,887,669,903.68|
|Unpaid tech development expense andadvertisement expense|264,175,587.81|218,025,509.98|
|Deferred income|2,424,031,846.05|2,336,113,151.75|
|Unpaid salary and bonus and others|716,740,820.12|694,298,557.42|
|Subtotal|6,656,927,223.21|5,728,677,498.66|
|Deductable temporary difference|||
|Available‐for‐sale financial assets on the changes infair value|228,722,844.29|205,217,528.29|

22. Provision for the impairment of assets
2013
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Beginning|Addition||Deduction||Ending|
||||||Reversal|Write‐off||
|I. Bad debt provision||94,413,546.91|4,789,077.92|4,868,382.13||8,290,249.29|86,043,993.41|
|II. Provision forobsolete inventory||181,956,119.51|129,297,848.55|1,940,609.52||94,518,967.39|214,794,391.15|
|III. Provision for theimpairment of fixedassets||404,986,769.82|137,263,574.26|‐||112,241,272.10|430,009,071.98|
|IV. Provision for theimpairment ofintangible assets||15,826,515.83|67,050,144.96|‐||6,700,000.00|76,176,660.79|
|V. Provision for theimpairment ofgoodwill||73,465,335.00|‐|‐||‐|73,465,335.00|
||Total|770,648,287.07|338,400,645.69|6,808,991.65||221,750,488.78|880,489,452.33|

 Note: The increase of impairment of fixed assets is mainly due to the impairment of machinery for the discontinued productions this year.
The increase of impairment of intangible assets is mainly due to the impairment of thenon‐patent technology
for the discontinued productions.
The impairment of inventory this year is mainly due to the cost of some vehicle and engine that manufactured
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
by Changan Automobile (Beijing) Company, branch of Chongqing Changan Automobile Company Limited, and Nanjing Changan Automobile, subsidiary of Chongqing Changan Automobile Company Limited, is lower than the net realizable value.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2012
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Beginning|Addition||Deduction|||Ending|
|||||Reversal||Write‐off||
|I. Bad debt provision|89,954,292.54|5,171,252.29|711,997.92||‐||94,413,546.91|
|II. Provision forobsolete inventory|113,077,812.03|95,571,476.66|3,631,102.82||23,062,066.36||181,956,119.51|
|III. Provision for theimpairment of fixedassets|315,469,242.91|153,192,851.11|‐||63,675,324.20||404,986,769.82|
|IV. Provision for theimpairment ofintangible assets|6,700,000.00|9,126,515.83|‐||‐||15,826,515.83|
|V. Provision for theimpairment of goodwill|73,465,335.00|‐|‐||‐||73,465,335.00|
|Total|598,666,682.48|263,062,095.89|4,343,100.74||86,737,390.56||770,648,287.07|

 23. Othernon‐current assets
||||
|-|-|-|
|Item|2013|2012|
|Prepayment of land(Note 1)|244,336,881.52|220,380,024.00|
|Prepayment of equity investment(Note 2)|‐|703,015,710.00|
|Total|244,336,881.52|923,395,734.00|

 Note 1: The prepayment of land is paid to acquire the land use right of 1,214 mu.
Note 2: Prepayment of equity investment is the prepayment that the Company purchased the50% equity of Changan PSA automobiles co.,Ltd from China Changan. In 2013, above purchase has been completed. Refer to note V 11.
24.Short‐term loans
(1) Classification ofshort‐term loans
||||
|-|-|-|
|Item|2013|2012|
|Mortgage loans|30,000,000.00|60,000,000.00|
|Credit loans|1,228,000,000.00|1,190,000,000.00|
|Total|1,258,000,000.00|1,250,000,000.00|

 As at 31 December 2013, the interest rate of the above loans was4.92%‐7.20% (as at 31 December 2012:4.92%‐6.30%).
As at 31 December 2013, there is noshort‐term loan which is due but not repaid (as at 31 December 2012: nil).
As at 31 December 2013, the Group obtained creditshort‐term loan of RMB10,000,000.00 from China Minsheng
Bank; creditshort‐term loan of RMB200,000,000.00 from theExport‐Import Bank of China, creditshort‐term
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
loan of RMB10,000,000.00 from China Merchants Bank; creditshort‐term loan of RMB1,000,000,000.00 from China South Industry Group Finance Co., Ltd; and creditshort‐term loan of RMB8,000,000.00 from China CITIC Bank.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
For the year ended of 2013, theshort‐term loan of RMB30,000,000.00 from China CITIC Bank 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.
As at 31 December 2012, the Group obtained creditshort‐term loan of RMB270,000,000.00 from Bank of China; creditshort‐term loan of RMB200,000,000.00 from TheExport‐import Bank of China; creditshort‐term loan of RMB200,000,000.00 from Industrial and Commercial Bank of China; creditshort‐term loan of RMB500,000,000.00 from China South Industry Group Finance Co., Ltd; and creditshort‐term loan of RMB20,000,000.00 from China CITIC Bank.
For the year ended of 2012, theshort‐term loan of RMB30,000,000.00 from China CITIC Bank was secured by the mortgages of the land use rights amounted to RMB2,682,306.32, buildings amounted to RMB4,918,832.00 and machinery amounted to RMB28,800,385.56. Theshort‐ term loan of RMB30,000,000.00 from Hangzhou Bank was secured by the mortgages of the land use rights amounted to RMB14,948,122.32 and the buildings amounted to RMB15,815,581.90.
25. Notes payable
||||
|-|-|-|
|Item|2013|2012|
|Commercial acceptance bill|226,946,025.00|297,776,543.00|
|Bank acceptance bill|9,161,835,934.80|7,511,221,549.99|
|Total|9,388,781,959.80|7,808,998,092.99|

 As at 31 December 2013, the notes payable amounted to RMB9,388,781,959.80 will be due in the next accounting period (31 December 2012: RMB7,808,998,092.99).
26. Accounts payable
(1) Accounts payable
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Accounts payable||7,671,845,704.87||7,201,763,448.59||

(2) Accounts payable to related parties is asfollows：
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties|Relationship withthe Group||2013||||2012|||
|||Amount|||Proportion of|Amount|||Proportion of|
||||||total||||total|
||||||accounts||||accounts|
||||||payable (%)||||payable (%)|
|Hafei Motor Co., Ltd.|Controlled by thesame parentcompany|211,566,557.98||2.76||128,719,099.88||1.79||
|South Tianhe ChassisSystem Co., Ltd|Controlled by thesame parentcompany|102,069,855.54||1.33||124,459,879.25||1.74||
|CSIA‐Jian'an|Branch of parent|83,012,150.58||1.08||111,077,271.38||1.55||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties|Relationship withthe Group||2013||||2012|||
|||Amount|||Proportion of|Amount|||Proportion of|
||||||total||||total|
||||||accounts||||accounts|
||||||payable (%)||||payable (%)|
|Automobile BridgeBranch||||||||||
|CSIA‐ChongqingTsingshanTransmission Branch|Branch of parent|81,061,026.50||1.06||18,447,802.84||0.26||
|Chongqing JiansheAutomobileAir‐conditioner Co.,Ltd.|Controlled by thesame ultimateholding company|71,333,271.84||0.93||49,801,432.27||0.69||
|Chongqing ChanganMin Sheng LogisticsCo., Ltd.|Controlled by thesame ultimateholding company|57,984,490.94||0.76||72,760,462.77||1.02||
|Hubei XiaoganHuazhong AutomobileLight Co., Ltd|Controlled by thesame ultimateholding company|39,419,147.84||0.51||40,464,945.09||0.56||
|Harbin DonganAutomobile EngineManufacture Co., Ltd.|Controlled by thesame parentcompany|37,202,140.47||0.48||136,313,412.28||1.89||
|South InterAir‐conditioner Co.,Ltd|Controlled by thesame parentcompany|25,512,682.93||0.33||22,765,958.34||0.32||
|Chongqing WanyouEconomicDevelopment Co., Ltd.|Controlled by thesame ultimateholding company|19,331,791.01||0.25||17,004,418.71||0.24||
|Chongqing ShangfangAutomobile Parts Co.,Ltd.|Controlled by thesame ultimateholding company|16,654,102.47||0.22||20,743,902.88||0.29||
|Changan FordAutomobile Co., Ltd|Joint venture|14,814,080.88||0.19||15,325,291.06||0.21||
|Chengdu WanyouFilter Co., Ltd|Controlled by thesame ultimateholding company|14,495,391.54||0.19||11,680,132.47||0.16||
|Chengdu LingchuanSpecial Industry Co.,Ltd|Controlled by thesame ultimateholding company|13,751,316.61||0.18||21,569,256.54||0.30||
|Chengdu LingchuanVehicle Oil Tank Co.,Ltd|Controlled by thesame ultimateholding company|12,522,328.50||0.16||10,802,258.00||0.15||
|Longchang ShanchuanShock‐absorbingWorks Industries Co.,Ltd|Controlled by thesame ultimateholding company|10,314,211.50||0.13||20,163,372.52||0.28||
|Chongqing ChangrongMachine Co., Ltd.|Controlled by thesame ultimateholding company|8,945,469.86||0.12||12,053,763.58||0.17||
|Sichuan NingjiangShanchuanMachinery Co, Ltd|Controlled by thesame ultimateholding company|8,645,584.79||0.11||4,952,442.79||0.07||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties|Relationship withthe Group||2013||||2012|||
|||Amount|||Proportion of|Amount|||Proportion of|
||||||total||||total|
||||||accounts||||accounts|
||||||payable (%)||||payable (%)|
|Harbin Dongan AutoEngine Co., Ltd|Controlled by thesame parentcompany|7,888,883.89||0.10||17,484,703.93||0.24||
|Yunnan Xiyi IndustriesCo., Ltd|Controlled by thesame ultimateholding company|6,307,781.87||0.08||5,546,058.68||0.08||
|Chongqing ChanganVisteon Engine ControlSystems Co., Ltd.|Controlled by thesame ultimateholding company|4,415,046.05||0.06||7,311,121.96||0.10||
|CSIA‐Chengdu Jian'anAutomobile BridgeBranch|Branch of parent|4,225,567.85||0.06||‐||‐||
|Chongqing ChangfengJiquan Machinery Co.,Ltd|Controlled by thesame parentcompany|4,034,553.99||0.05||4,142,674.18||0.06||
|Chongqing QingshanTransmission Sales Co.,Ltd.|Controlled by thesame ultimateholding company|3,510,369.53||0.05||4,654,778.54||0.06||
|Chongqing XiyiAutomobile LinkageRod Co., Ltd.|Associate|3,094,672.85||0.04||5,392,451.59||0.07||
|Chengdu NingxingAutomobile SpringCo., Ltd.|Controlled by thesame parentcompany|2,625,476.67||0.03||1,838,710.24||0.03||
|Chengdu HuachuanElectric EquipmentCo., Ltd|Controlled by thesame parentcompany|2,063,833.08||0.03||25,308,680.22||0.35||
|Changan IndustriesGroup Co. Ltd|Controlled by thesame ultimateholding company|1,470,171.48||0.02||1,782,289.62||0.02||
|Chongqing DajiangXinda Vehicles SharesCo., Ltd.|Controlled by thesame ultimateholding company|748,874.25||0.01||4,590,162.30||0.06||
|Sichuan HongguangMachinery andElectrics Co., Ltd|Controlled by thesame ultimateholding company|587,194.88||0.01||10,248,221.07||0.14||
|Chengdu Jialing HuaxiOptical & PrecisionMachinery Co., Ltd|Controlled by thesame ultimateholding company|460,309.02||0.01||230,810.22||0.00||
|Chongqing YihongEngineering PlasticProducts Co., Ltd.|Controlled by thesame ultimateholding company|388,320.89||0.01||990,540.33||0.01||
|ChongqingAutomobileAir‐conditioner Co.,Ltd.|Controlled by thesame parentcompany|205,041.51||0.00||205,041.51||0.00||
|Beijing BeijiMechanical and|Controlled by thesame ultimate|187,931.10||0.00||111,132.50||0.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Related parties||Relationship withthe Group||2013||||2012|||
||||Amount|||Proportion of|Amount|||Proportion of|
|||||||total||||total|
|||||||accounts||||accounts|
|||||||payable (%)||||payable (%)|
|Electrical Industry Co.,Ltd||holding company|||||||||
|Chongqing DajiangYuqiang Plastic Co.,Ltd.||Controlled by thesame ultimateholding company|86,896.33||0.00||293,172.96||0.00||
|Chengdu NingjiangZhaohe AutomobileComponents Co., Ltd||Controlled by thesame parentcompany|78,777.22||0.00||229,162.79||0.00||
|Chongqing ChanganKuayue AutomobileCo., Ltd||Associate|77,208.01||0.00||77,208.01||0.00||
|Yunnan Wanyou AutoSales and Service Co.,Ltd||Controlled by thesame ultimateholding company|1,588.50||0.00||‐||‐||
||Total||871,094,100.75||11.35||929,542,023.30||12.91||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(3) As at 31 December 2013, there is no accounts payable aged over one year.
(4) As at 31 December 2013, there is no amount due to shareholders that hold5% or more of the ParentCompany’s voting shares (As at 31 December 2012: nil).
27. Advances from customers
(1) Advances from customers
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Advances from customers||4,258,001,533.60||4,251,355,201.70||

 (2) As at 31 December 2013, the advances from customers of RMB116,689,162.15 aged over one year is mainly credit guarantee charged to the dealer.
(3) As at 31 December 2013, there is no amount due to shareholders that hold5% or more of the ParentCompany’s voting shares (As at 31 December 2012: nil).
(4) As at 31 December 2013, advances from customers stated in foreign currency is as follow:
|||||||||
|-|-|-|-|-|-|-|-|
||Item||Original currency||Exchange rate||Equivalent to RMB|
|USD||12,826,452.67||6.1299||78,624,872.22||

 (5) Advances from customers from related parties is asfollows：
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related parties|Relationship withthe Group||2013|||2012|||
|||Amount|||Proportion of|Amount||Proportion of|
||||||total|||total|
||||||accounts|||accounts|
||||||payable (%)|||payable (%)|
|Wanyou AutomobileInvestment Co,.Ltd|Controlled by thesame parentcompany|66,697,598.00||1.57||‐|‐||
|Guizhou Wanyou AutoSales and Service Co.,Ltd|Controlled by thesame ultimateholding company|37,904,652.54||0.89||24,183,609.06|0.57||
|Chengdu WanyouXiangyu Auto Sales andService Co., Ltd|Controlled by thesame ultimateholding company|33,777,648.07||0.79||35,500,225.54|0.84||
|Yunnan Wanyou AutoSales and Service Co.,Ltd|Controlled by thesame ultimateholding company|26,371,376.55||0.62||7,881,469.40|0.19||
|Chongqing WanyouEconomicDevelopment Co., Ltd|Controlled by thesame ultimateholding company|22,423,321.66||0.53||55,459,817.10|1.30||
|Chengdu WanyouEconomicTechnologicalDevelopment Co., Ltd|Controlled by thesame ultimateholding company|16,744,132.43||0.39||46,527,059.64|1.09||
|Guangxi Wanyou AutoSales and Service Co.,|Controlled by thesame ultimate|7,808,775.67||0.18||5,567,939.76|0.13||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties||Relationship withthe Group||2013|||2012|||
||||Amount|||Proportion of|Amount||Proportion of|
|||||||total|||total|
|||||||accounts|||accounts|
|||||||payable (%)|||payable (%)|
|Ltd||holding company||||||||
|Nanning Wanyou AutoSales and Service Co.,Ltd||Controlled by thesame ultimateholding company|3,942,335.87||0.09||1,153,450.87|0.03||
|China ChanganAutomobile GroupTianjin Sales Co., Ltd||Controlled by thesame parentcompany|3,352,511.00||0.08||4,518,058.00|0.11||
|Chongqing ChanganMin Sheng LogisticsCo., Ltd.||Controlled by thesame ultimateholding company|346,716.96||0.01||345,450.10|0.01||
|Jiangling Holding Co.||Joint venture|499,717.24||0.01||‐|‐||
|China ChanganAutomobile GroupChongqing GuangdaSales Co., Ltd||Controlled by thesame parentcompany|21,843.52||0.00||459,214.05|0.01||
|Southwest OrdnanceIndustry Corporation||Controlled by thesame ultimateholding company|‐||‐||131,909,063.75|3.10||
|Changan Ford MazdaEngine Co., Ltd.||Joint Venture|‐||‐||1,791,202.38|0.04||
|Changan MazdaAutomobile Co., Ltd.||Joint venture|‐||‐||76,663.28|0.00||
||Total||219,890,629.51||5.16||315,373,222.93|7.42||

 28. Payroll payable
2013
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|I. Salary, bonus,allowance and subsidy||283,423,266.58||2,237,199,236.96||2,062,226,923.23||458,395,580.31||
|II. Employee benefit||285,124.58||331,371,236.86||131,810,446.29||199,845,915.15||
|III. Social insurance||62,160,908.55||352,106,254.32||358,068,744.91||56,198,417.96||
|IV. Housingaccumulation fund||76,541,750.36||210,565,973.93||216,737,383.38||70,370,340.91||
|V. Labor fund andemployee educationfund||5,504,723.89||53,782,500.34||53,798,359.61||5,488,864.62||
||Total|427,915,773.96||3,185,025,202.41||2,822,641,857.42||790,299,118.95||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|I. Salary, bonus,allowance and subsidy||180,631,806.23||1,823,102,689.83||1,720,311,229.48||283,423,266.58||
|II. Employee benefit||269,198.56||94,725,741.79||94,709,815.77||285,124.58||
|III. Social insurance||68,167,488.60||338,741,936.07||344,748,516.12||62,160,908.55||
|IV. Housingaccumulation fund||24,541,053.40||167,235,739.35||115,235,042.39||76,541,750.36||
|V. Labor fund andemployee educationfund||5,199,147.21||43,673,382.07||43,367,805.39||5,504,723.89||
||Total|278,808,694.00||2,467,479,489.11||2,318,372,409.15||427,915,773.96||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
As at 31 December 2013, there is no balance which is in arrears (As at 31 December 2012: nil).
As at 31 December 2013, there is no balance which isnon‐monetary benefits (As at 31 December 2012: nil).
As at 31 December 2013, there is no balance which is the compensation for cancelling the labor relationship (As at 31 December 2012: nil).
29. Taxes payable
||||
|-|-|-|
|Item|2013|2012|
|Value‐added tax|(179,935,324.88)|(310,531,923.86)|
|Consumption tax|308,333,797.97|208,180,850.74|
|Business tax|770,462.54|1,924,079.63|
|Corporate income tax|(35,315,345.50)|135,838,776.64|
|Individual Income tax|2,334,059.73|525,886.83|
|City maintenance and construction tax|17,145,387.55|7,643,259.72|
|Education additional expenses|12,028,800.68|5,254,758.08|
|Others|5,734,636.75|1,046,639.15|
|Total|131,096,474.84|49,882,326.93|

 30. Interest payable
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Long‐term loan interest||3,917,361.11||2,489,194.44||
|Short‐term loan interest||738,351.38||1,368,897.23||
|Corporate bonds interest||73,458,000.00||73,458,000.00||
||Total|78,113,712.49||77,316,091.67||

 31. Dividend payable
||||
|-|-|-|
|Item|2013|2012|
|Dividend payable – Hebei Changan Minorityinterests|79,742.80|79,742.80|
|Total|79,742.80|79,742.80|

 32. Other payables
(1) Details of other payables
||||||
|-|-|-|-|-|
||Item||2013|2012|
|Dealer earnest money||147,131,768.08||115,765,906.73|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||
|-|-|-|-|
|Warranty||22,273,965.45|10,693,731.97|
|Repair fees||185,746,575.98|125,702,517.71|
|Advertisement fees||198,835,065.92|185,351,368.09|
|Warehousing and transport fees||216,289,028.04|319,543,794.23|
|Loans temporarily||19,689,462.31|2,575,021.77|
|Project funds||697,029,046.07|1,030,866,246.95|
|Others||144,583,844.07|127,750,833.04|
||Total|1,631,578,755.92|1,918,249,420.49|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) As at 31 December 2013, there is no amount due to shareholders that hold5% or more of
the parentcompany’s voting shares (As at 31 December 2012: nil).
(3) As at 31 December 2013, other payables to related parties are asfollows：
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related parties|Relationship withthe Group||2013|||2012|||
|||Amount||Proportion oftotal otherpayables (%)|Amount|||Proportion|
|||||||||of total|
|||||||||other|
|||||||||payables (%)|
|Chongqing ChanganMin Sheng LogisticsCo., Ltd.|Controlled by thesame ultimateholding company|227,771,641.76||13.96|228,316,728.17||11.89||
|Chongqing ChanganConstruction Co., Ltd|Controlled by thesame ultimateholding company|23,320,991.30||1.43|73,671,074.05||3.84||
|Changan IndustriesGroup Co. Ltd|Controlled by thesame ultimateholding company|6,228,519.04||0.38|1,871,136.20||0.10||
|Hafei Motor Co., Ltd.|Controlled by thesame parentcompany|4,811,080.37||0.29|2,404,233.00||0.13||
|Chongqing ChanganProperty ManagementLtd.|Controlled by thesame ultimateholding company|1,345,904.19||0.08|1,829,133.79||0.10||
|Chengdu WanyouXiangyu Auto Sales andService Co., Ltd|Controlled by thesame ultimateholding company|1,331,884.26||0.08|‐||‐||
|Yunnan Wanyou AutoSales and Service Co.,Ltd|Controlled by thesame ultimateholding company|821,010.31||0.05|1,270.40||0.00||
|Chongqing WanyouConstruction Co., Ltd|Controlled by thesame ultimateholding company|242,726.00||0.01|‐||‐||
|Chengdu WanyouEconomic TechnologicalDevelopment Co., Ltd|Controlled by thesame ultimateholding company|125,509.91||0.01|245,808.15||0.01||
|Chengdu Wanyou FilterCo., Ltd|Controlled by thesame ultimateholding company|120,000.00||0.01|120,000.00||0.01||
|Chongqing ChanganReal EstateDevelopment Co., Ltd|Controlled by thesame ultimateholding company|74,374.90||0.01|189,027.00||0.01||
|Chongqing WanyouLongrui Auto Sales andService Co., Ltd|Controlled by thesame ultimateholding company|72,770.27||0.01|‐||‐||
|Chongqing WanyouEconomic DevelopmentCo., Ltd.|Controlled by thesame ultimateholding company|67,233.45||0.01|‐||‐||
|Suining Wanyou AutoSales and Service Co.,Ltd|Controlled by thesame ultimateholding company|32,968.00||0.00|‐||‐||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related parties|Relationship withthe Group||2013|||2012|||
|||Amount||Proportion oftotal otherpayables (%)|Amount|||Proportion|
|||||||||of total|
|||||||||other|
|||||||||payables (%)|
|Chongqing WanyouLongxing Auto Salesand Service Co., Ltd|Controlled by thesame ultimateholding company|18,301.40||0.00|‐||‐||
|Chengdu WanyouTrading Co., Ltd|Controlled by thesame ultimateholding company|13,825.70||0.00|‐||‐||

Chongqing HelpGo Associate ‐ ‐ 17,171,978.77 0.90 Information Technology
Co., Ltd
||||||||
|-|-|-|-|-|-|-|
|CSIA‐ChongqingTsingshan TransmissionBranch||Branch of parent|‐|‐|831,379.12|0.04|
|Chongqing ShangfangAutomobile FittingsCo., Ltd||Controlled by thesame ultimateholding company|‐|‐|51,618.40|0.00|
|Chongqing WanyouAuto Sales and ServiceCorporation||Controlled by thesame ultimateholding company|‐|‐|4,982.00|0.00|
|Sichuan NingjiangShanchuan MachineryCo, Ltd||Controlled by thesame ultimateholding company|‐|‐|3,164.00|0.00|
||Total||266,398,740.86|16.33|326,711,533.05|17.03|

 As at 31 December 2013, RMB153,142,301.29 of other payables aged over one year was mainly were mainly security deposits from dealers and suppliers.
33. Contingent liabilities
2013
||||||
|-|-|-|-|-|
|Item|Beginning|Addition|Deduction|Ending|
|Warranty|676,261,668.40|934,221,163.44|493,315,545.25|1,117,167,286.59|
|Total|676,261,668.40|934,221,163.44|493,315,545.25|1,117,167,286.59|

 2012
||||||
|-|-|-|-|-|
|Item|Beginning|Addition|Deduction|Ending|
|Warranty|589,154,705.34|545,460,949.52|458,353,986.46|676,261,668.40|
|Total|589,154,705.34|545,460,949.52|458,353,986.46|676,261,668.40|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
34.Long‐term loans within one year
(1)Long‐term loans within one year are as follows:
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Mortgage loans||‐||18,000,000.00||
|Credit loans||520,000,000.00||‐||
||Total|520,000,000.00||18,000,000.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) As at 31 December 2013, the Company obtained along‐term credit loan of RMB490,000,000.00 from China South Industry Group Finance Co., Ltd, including RMB20,000,000.00 to be repaid within one year; obtained along‐term credit loan of RMB1,000,000,000.00 from TheExport‐import Bank of China, including RMB200,000,000.00 to be repaid within one year; obtained RMB300,000,000.00 from China Construction Bank.
(3) As at 31 December 2013, there was no overduelong‐term loan within one year which had been extended (As at 31 December 2012: nil).
(4) As at 31 December 2013, there was nolong‐term loan within one year which was due but to be repaid (As at 31 December 2012: nil).
35. Other current liabilities
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Accrued utilities||13,205,988.82||21,912,043.20||
|Accrued transportation fee||380,523,308.93||270,098,933.35||
|Accrued labor service fee||21,407,047.55||18,482,138.54||
|Accrued technology royalty||42,497,027.01||118,916,218.60||
|Accrued commercial discountpayable||1,236,916,077.71||963,786,289.74||
|Accrued market developmentexpense||154,394,367.01||85,300,072.39||
|Accrued rental||5,023,000.00||3,321,000.00||
|Retirement benefits (Note V 39)||5,002,000.00||6,088,000.00||
|Others||41,660,285.09||30,612,242.85||
||Total|1,900,629,102.12||1,518,516,938.67||

 36.Long‐term loans
(1) The classification oflong‐term loans is as follows:
||||
|-|-|-|
|Item|2013|2012|
|Credit loans|1,270,000,000.00|900,000,000.00|
|Mortgage loans|‐|92,000,000.00|
|Total|1,270,000,000.00|992,000,000.00|

Long‐term loans are the loans borrowed by the Group from the bank or other financial institution longer than
one year (not including one year).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) As at 31 December 2013, details oflong‐term credit loans are as follows:
||||||||||
|-|-|-|-|-|-|-|-|-|
|Lender|Starting|Expiring|Currenc|Interest|2013||2012||
||date|date|y|rate (%)|Original|Equivalent to RMB|Original|Equivalent to RMB|
||||||currency||currency||
|China SouthIndustry GroupFinance Co., Ltd|5 November2012|5 November2015|RMB|5.535|‐|290,000,000.00|‐|300,000,000.00|
|China SouthIndustry GroupFinance Co., Ltd|7 November2012|7 November2015|RMB|5.535|‐|200,000,000.00|‐|200,000,000.00|
|ChongqingGuanyinqiaobranch of ChinaConstructionBank|3 December2012|2 December2014|RMB|5.530|‐|300,000,000.00|‐|400,000,000.00|
|Chongqingbranch of TheExport‐importBank of China|26September2013|26September2015|RMB|5.220|‐|1,000,000,000.00|‐|‐|
|Total||||‐‐||1,790,000,000.00||900,000,000.00|

 As at 31 December 2013,long‐term loan is amounted to RMB1,790,000,000.00 (2012: RMB900,000,000.00). In accordance with the repayment terms thelong‐term loan due within one year was RMB520,000,000.00. Refer to Note V 34.
(3) As at 31 December 2013, there is nolong‐term mortgage loan (2012: RMB110,000,000.00). (4) As at 31 December 2013, there is nolong‐term loan which is due but to be repaid (As at 31 December 2012: nil).
(5) As at 31 December 2013, there is nolong‐term loan formed by extension of overdue loans (as at 31 December 2012: nil).
37. Bonds payables
Details of bonds payables are as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Corporate bonds||1,963,348,839.97||3,917,919.96||‐||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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Movement of interest of bonds payable is as follows:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Beginning||Addition||Deduction||Ending|
|Interest payables(Refer to NoteV 30)||73,458,000.00||104,940,000.00||104,940,000.00||73,458,000.00||

38. Special payables
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 ofhybrid electric vehicles|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 chainsharing 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 andindustrialization of theembedded software platformfor automotive electroniccontrollers|5,817,004.87|‐|396,555.11|5,420,449.76|
|Changan automobile E classGasoline engine cylinder 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 deliverysystem project|991,047.00|‐|515,358.00|475,689.00|
|Industrialization of patentedtechnologies|593,000.00|‐|‐|593,000.00|
|Vehicle network intelligentinformation terminalmiddleware key technologiesresearch and application|2,400,000.00|‐|1,551,884.97|848,115.03|
|Development andindustrialization of C206 pureelectric cars|‐|80,000,000.00|27,655,658.17|52,344,341.83|
|System development ofelectromagnetic compatibilityof key accessories on electriccars|‐|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 2013
(Expressed in Renminbi Yuan)
2012
||||||
|-|-|-|-|-|
|Item|Beginning|Addition|Deduction|Ending|
|Project 863|27,682,405.12|23,229,200.00|28,538,851.62|22,372,753.50|
|Test on key technology of hybridelectric vehicles|828,912.36|‐|542,439.28|286,473.08|
|Development of Hydrogeninternal‐combustion engine|32,236.14|‐|30,444.30|1,791.84|
|New Vehicle product|2,595,134.82|3,780,000.00|563,775.41|5,811,359.41|
|Automobile product chain sharingplatform|4,460,605.54|‐|100,000.00|4,360,605.54|
|Lightweight design of automotivestructures|1,484,851.36|165,000.00|1,265,897.31|383,954.05|
|Gasoline Engine Development|3,920,000.00|‐|1,843,384.90|2,076,615.10|
|Development and industrializationof the embedded softwareplatform for automotive electroniccontrollers|6,416,087.01|‐|599,082.14|5,817,004.87|
|Changan automobile E classGasoline engine cylinder block,cylinder head production lineproject|23,230,000.00|‐|570,000.00|22,660,000.00|
|Land relocation compensation|29,550,709.40|20,800,000.00|‐|50,350,709.40|
|Project 973|‐|750,000.00|436,509.50|313,490.50|
|Automotive order to deliverysystem project|‐|1,000,000.00|8,953.00|991,047.00|
|Industrialization of patentedtechnologies|‐|600,000.00|7,000.00|593,000.00|
|Vehicle network intelligentinformation terminal middlewarekey technologies research andapplication|‐|2,400,000.00|‐|2,400,000.00|
|Others|13,273,544.77|7,768,480.00|8,407,305.10|12,634,719.67|
|Total|113,474,486.52|60,492,680.00|42,913,642.56|131,053,523.96|

 39. Othernon‐current liabilities
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Retirement benefits||26,422,000.00||35,457,000.00||
|Deferred income||2,459,986,374.75||2,368,737,366.91||
||Total|2,486,408,374.75||2,404,194,366.91||

 As at 31 December 2013, the balance of retirement benefits is RMB31,424,000.00 (As at 31 December 2012:
RMB41,545,000.00), including RMB5,002,000.00 to be paid within one year, which is recorded in other current
liabilities (As at 31 December 2012: RMB6,088,000.00). Refer to Note V 35.
Deferred income contains all government grant related to assets as at 31 December 2013.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
As at 31 December 2013, details of liability related to government grant are as follows:
|||||||
|-|-|-|-|-|-|
|Item|Beginning|Addition|Recorded to|Ending|Relates to asset/gain|
||||non‐operating|||
||||income|||
|Subsidies for the automobilecomprehensive testing 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 productioncapacity of auto 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 typeengine production line|172,483,194.45|‐|15,965,833.33|156,517,361.12|Relates to asset|
|Expansion of production capacityproject|68,624,215.16|‐|6,215,638.48|62,408,576.68|Relates to asset|
|Subsidies for the construction of Hebeinew plant|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 ofIndustry and Information Technology|5,000,000.00|‐|‐|5,000,000.00|Relates to asset|
|Subsidies for engine produce base ofNanjing Changan|‐|9,545,952.00|‐|9,545,952.00|Relates to asset|
|Light vehicle technical transformationproject of Baoding Changan Bus|‐|145,700,647.00|2,000,000.00|143,700,647.00|Relates to asset|
|Total|2,368,737,366.91|160,246,599.00|68,997,591.16|2,459,986,374.75||

As at 31 December 2012, details of liability related to government grant are as follows:
|||||||
|-|-|-|-|-|-|
|Item|Beginning|Addition|Recorded to|Ending|Relates to asset/gain|
||||non‐operating|||
||||income|||
|Subsidies for the automobilecomprehensive testing ground project|375,820,000.00|200,000,000.00|‐|575,820,000.00|Relates to asset|
|Funds for Yuzui motor city project|272,816,326.53|‐|5,683,673.47|267,132,653.06|Relates to asset|
|Funds for Beijing Changan project|324,384,200.00|860,000,000.00|25,456,895.76|1,158,927,304.24|Relates to asset|
|Funds for technology innovation|16,150,000.00|‐|‐|16,150,000.00|Relates to asset|
|Funds for expansion of productioncapacity of auto mold|17,420,000.00|‐|‐|17,420,000.00|Relates to asset|
|Funds for H series engine|64,000,000.00|‐|‐|64,000,000.00|Relates to asset|
|Industry upgrading project for smalldisplacement engine and technologicaltransformation project for CB typeengine production line|188,449,027.78|‐|15,965,833.33|172,483,194.45|Relates to asset|
|Expansion of production capacityproject|75,197,010.85|‐|6,572,795.69|68,624,215.16|Relates to asset|
|Subsidies for the construction of Hebeinew plant|25,500,000.00|‐|2,320,000.00|23,180,000.00|Relates to asset|
|Funds for the project of Ministry ofIndustry and Information Technology|‐|5,000,000.00|‐|5,000,000.00|Relates to asset|
|Total|1,359,736,565.16|1,065,000,000.00|55,999,198.25|2,368,737,366.91||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
40. Share capital
As at 31 December 2013 the registered andpaid‐in share capital of the Company was RMB4,662,886,108.00 (As at 31 December 2012: 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:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Current movement||||||
|||31 December, 2012||Issuance of|Stock dividend|Transfer of reserve tocommon shares|Others|Subtotal|31 December, 2013|
|||||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|‐|‐||‐|‐|‐|‐|‐|
||Shares held by domestic natural person|17,246|‐||‐|‐|‐|‐|17,246|
|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|RMB ordinary shares|3,387,524,378|‐||‐|‐|‐|‐|3,387,524,378|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||
|-|-|-|-|-|-|-|-|-|
|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 2013
(Expressed in Renminbi Yuan)
2012
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Current movement||||||
|||31 December, 2011|Issuance of shares||Stock dividend|Transfer of reserve tocommon shares|Others|Subtotal|31 December, 2012|
|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|‐|‐|||||||
||Shares held by domestic natural person|17,246|‐||‐|‐|‐|‐|17,246|
|4|Foreign Shares|||||||||
||Including:|||||||||
||Shares held by foreign legal persons|‐|‐||‐|‐|‐|‐|‐|
||Shares held by foreign natural persons|‐|‐||‐|‐|‐|‐|‐|
|Total of restricted shares||373,375,588|||‐|‐|‐|‐|‐|
|II.|Unrestricted shares|||||||||
|1|RMBordinary shares|3,387,524,378|‐||‐|‐|‐|‐|3,387,524,378|
|2|Foreign‐funded shares listed domestically|1,073,582,580|||‐|‐|(171,596,438)|(171,596,438)|901,986,142|
|3|Foreign‐funded shares listed overseas|‐|‐||‐|‐|‐|‐|‐|
|4|Others|‐|‐||‐|‐|‐|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total of unrestricted shares||4,461,106,958||‐|‐|(171,596,438)|(171,596,438)|4,289,510,520|
|III.|Total shares|4,834,482,546|‐|‐|‐|(171,596,438)|(171,596,438)|4,662,886,108|

 Refer to Note I for the explanation for the movement of share capital.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
41. Capital reserves
2013
||||||
|-|-|-|-|-|
|Item|31 December 2012|Addition|Deduction|31 December 2013|
|Share premium|2,819,011,364.15|105,022.66|29,886,975.95|2,789,229,410.86|
|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|208,411,112.08|19,403,987.00|‐|227,815,099.08|
|Total|3,088,935,360.43|19,509,009.66|29,886,975.95|3,078,557,394.14|

 2012
||||||
|-|-|-|-|-|
|Item|31 December 2011|Addition|Deduction|31 December 2012|
|Share premium|3,144,341,824.65|‐|325,330,460.50|2,819,011,364.15|
|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|200,388,897.08|8,022,215.00|‐|208,411,112.08|
|Total|3,406,243,605.93|8,022,215.00|325,330,460.50|3,088,935,360.43|

 The addition of share premium was due to the purchase of minority interest amounted to RMB105,022.66. The deduction of share premium was due to the purchase of minority interest amounted to RMB29,886,975.95.
The addition of other capital reserves is due to the fair value fluctuation ofavailable‐for‐sale financial assets amounted to RMB19,403,987.00 (2012: increase of RMB8,022,215.00)
42. Surplus reserves
||||||
|-|-|-|-|-|
|Item|31 December 2012|Addition|Deduction|31 December 2013|
|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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
43. Retained earnings
||||
|-|-|-|
|Item|2013|2012|
|Retained earnings at beginning of year|6,335,790,529.86|5,238,240,172.61|
|Add: Net profit belong to owners|3,505,640,520.04|1,446,409,591.28|
|Less: Appropriation to statutory surplusreserves|374,789,075.27|162,150,899.77|
|Ordinary share dividend of cash|232,784,471.61|186,708,334.26|
|Retained earnings at the end of year|9,233,857,503.02|6,335,790,529.86|

 According to the resolution of the nineteenth meeting of the sixth session of the Board of Directors, the profit distribution plan of 2013 is as follow: on the base of the existing share capital of 4,662,886,108 shares, the Group will issue cash dividends of RMB1.00 to every 10 shares, RMB466,288,610.80 in total (tax included). This profit distribution plan should be approved in the meeting of the shareholder.
44. Operating revenue and cost
(1) Operating revenue and cost
||||||
|-|-|-|-|-|
|Item||2013||2012|
|Operating revenue|37,735,035,123.71||28,868,867,429.95||
|Other operating revenue|746,827,138.19||593,721,323.61||
|Total revenue|38,481,862,261.90||29,462,588,753.56||
|Operating cost|31,747,798,788.90||24,040,087,067.12||

 (2) Operating revenue listed as follows:
||||||
|-|-|-|-|-|
|Product|2013||2012||
||Revenue|Cost of sales|Revenue|Cost of sales|
|Sale of goods|37,522,817,344.71|30,820,498,048.24|28,639,375,397.24|23,096,254,538.16|
|Outsourcing processing|212,217,779.00|189,666,364.44|229,492,032.71|212,697,469.77|
|Total|37,735,035,123.71|31,010,164,412.68|28,868,867,429.95|23,308,952,007.93|

 (3) Top five customers of operating revenue are as follows:
2013
||||||
|-|-|-|-|-|
|Customer||Amount||Proportion of total operating revenue (%)|
|First|1,183,837,549.95||3.08||
|Second|918,704,839.41||2.39||
|Third|787,473,701.16||2.05||
|Fourth|758,011,398.83||1.97||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||
|-|-|-|-|
|Fifth||678,240,884.77|1.75|
||Total|4,326,268,374.12|11.24|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2012
|||||||
|-|-|-|-|-|-|
||Customer||Amount||Proportion of total operating revenue (%)|
|First||769,323,702.75||2.61||
|Second||661,441,223.09||2.25||
|Third||660,073,017.95||2.24||
|Fourth||413,749,116.62||1.40||
|Fifth||388,542,078.83||1.32||
||Total|2,893,129,139.24||9.82||

 The Group's operating activities are principally related to the sales of motor vehicles and accessories. The99% of sales were domestic (2012:99%). So segment reporting information was not needed.
45. Business tax and surcharges
|||||
|-|-|-|-|
||||The standard for calculation|
|Item|2013|2012||
||||and payment|
|Business tax|2,722,891.91|2,192,642.09|Refer to Note III|
|Consumption tax|1,032,807,764.13|652,197,517.05|Refer to Note III|
|City maintenance andconstruction tax|152,543,829.86|72,104,817.20|Refer to Note III|
|Education additionalexpenses|72,028,545.68|33,012,468.57|Refer to Note III|
|Others|676,520.27|125,765.15|Refer to Note III|
|Total|1,260,779,551.85|759,633,210.06||

46. Operating expenses
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Payroll and welfare||198,109,526.07||190,920,529.65||
|Promotion fee||721,820,224.62||623,119,494.40||
|Transportation expenses||1,381,917,241.02||1,255,777,527.47||
|Travelling expenses||64,336,087.61||70,918,254.22||
|Package expenses||13,466,932.83||15,239,943.59||
|Administrative expenses||12,681,264.97||8,282,021.85||
|Selling service fee||790,289,887.96||491,545,078.52||
|Sales discount||298,227,846.48||(90,094,149.86)||
|Others||72,706,924.31||64,126,359.55||
||Total|3,553,555,935.87||2,629,835,059.39||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
47. General and administrative expenses
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Payroll and welfare||895,084,138.97||736,355,108.76||
|Technology research expenses||1,105,928,119.82||1,163,628,140.49||
|Administrative expenses||198,320,434.29||209,845,435.47||
|Depreciation and amortization||372,627,311.60||310,430,612.53||
|Miscellaneous service charges||19,161,741.31||24,029,449.84||
|Tax fee||158,919,970.68||114,677,635.08||
|Traffic expenses||30,916,775.62||29,545,189.36||
|Travelling expenses||20,576,726.94||24,354,902.50||
|Entertainment expenses||22,343,435.91||30,938,753.14||
|Others||68,026,217.91||46,442,003.11||
||Total|2,891,904,873.05||2,690,247,230.28||

 48. Financial expenses
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Interest expense||206,023,838.42||142,198,712.84||
|Less: interest income||142,089,807.55||117,277,942.68||
|capitalized interest||2,814,221.50||2,074,266.72||
|Exchange gain or loss||(955,075.61)||(1,904,382.55)||
|Others||11,803,728.61||7,995,751.13||
||Total|71,968,462.37||28,937,872.02||

 The capitalized interest cost had been recorded in construction in process.
49. Impairment loss on assets
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|1. Bad debt loss||(79,304.21)||4,459,254.37||
|2. Impairment provision of obsoleteinventory||127,357,239.03||91,940,373.84||
|3. Impairment provision of fixed assets||137,263,574.26||153,192,851.11||
|4. Impairment provision of intangibleassets||67,050,144.96||9,126,515.83||
||Total|331,591,654.04||258,718,995.15||

50. Profit and loss from fair value changes
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
||Sources of fair value changes||2013||2012|
|Financial assets held for trading||(332,407.00)||(1,193,392.63)||
||Total|(332,407.00)||(1,193,392.63)||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
51. Investment income
(1) Details of investment income
|||||||
|-|-|-|-|-|-|
||Item||2013||2012|
|Long‐term equity investment incomeunder cost method||27,013,203.42||6,000,000.00||
|Long‐term equity investment incomeunder equity method||4,474,644,845.42||1,860,722,181.38||
|Income from available‐for‐sale financialassets||5,195,000.00||1,819,000.00||
|Investment loss through disposal oflong‐term equity investment||(250,733.75)||‐||
||Total|4,506,602,315.09||1,868,541,181.38||

 (2)Long‐term equity investment income under cost method
||||||||
|-|-|-|-|-|-|-|
||Investee||2013||2012|Reason for the fluctuation|
|China South Industry GroupFinance Co., Ltd||23,413,203.42||6,000,000.00||Increase in dividend due toIncrease in profit|
|Chongqing Ante Import‐ExportTrading Co., Ltd||3,600,000.00||‐||Increase in dividend due toIncrease in profit|
||Total|27,013,203.42||6,000,000.00|||

(3)Long‐term equity investment income under equity method
||||||||
|-|-|-|-|-|-|-|
||Investee||2013||2012|Reason for the fluctuation|
|Changan Ford Automobile Co.,Ltd.||4,091,202,560.31||1,563,978,672.73||Increase in profit due to salesexpansion|
|Changan Mazda Automobile Co.,Ltd||49,976,658.52||17,470,973.80||Increase in profit due to salesexpansion|
|Chongqing Changan SuzukiAutomobile Co., Ltd||917,918.98||49,340,446.81||Decrease in profit due to salesdecline|
|Changan Ford Mazda EngineCo., Ltd||124,232,371.10||14,819,417.33||Increase in profit due to salesexpansion|
|Jiangling Holding Co., Ltd||263,346,186.29||213,752,535.42||Increase in profit due to salesexpansion|
|Chongqing HelpGo InformationTechnology Co., Ltd||‐||(1,460,080.64)||Terminated in this year|
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd||357,036.55||750,367.82||Decrease in profit due to salesdecline|
|Changan PSA AutomobilesCO.,Ltd||(50,584,027.86)||‐||New joint venture (refer to NoteV 11 for details)|
|Beijing Fang’an Taxi Co., Ltd||(5,001,370.36)||‐||Decrease in profit due to salesdecline|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||
|-|-|-|-|-|
|Chongqing Changan KuayueAutomobile sales Co.,Ltd||‐|(1.00)||
|Chongqing Changan KuayueAutomobile Co.,Ltd||197,511.89|2,069,849.11|Decrease in profit due to salesdecline|
||Total|4,474,644,845.42|1,860,722,181.38||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
52.Non‐operating income
|||||||
|-|-|-|-|-|-|
|Item||2013|2012||Amount recognized as|
||||||non‐recurring profit|
||||||and loss|
|Gain on the disposal of fixed assets||2,035,008.63|1,456,604.43|2,035,008.63||
|Gain on the disposal of intangible assets||3,652,513.99|‐|3,652,513.99||
|Government grants||196,086,391.16|402,264,192.28|196,086,391.16||
|Others||22,833,870.40|16,881,854.16|22,833,870.40||
||Total|224,607,784.18|420,602,650.87|224,607,784.18||

 Government grants recognized as current income:
|||||||||
|-|-|-|-|-|-|-|-|
||Item||2013||2012||Relates to asset/gain|
|Technology innovation and industrializationfunds||89,755,000.00||228,210,000.00||Relates to gain||
|Funds for Beijing Changan project||31,059,112.56||25,456,895.76||Relates to asset||
|Tax return for new products||17,181,800.00||4,843,000.00||Relates to gain||
|Subsidy of Import Discount Interest fromMOF||16,973,000.00||‐||Relates to gain||
|Industry upgrading project for smalldisplacement engine and technologicaltransformation project for CB type engineproduction line||15,965,833.33||15,965,833.33||Relates to asset||
|Expansion of production capacity project||6,215,638.48||6,572,795.69||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||5,333,333.32||‐||Relates to asset||
|Government grants for technology researchexpenses||540,000.00||109,863,900.41||Relates to gain||
|Subsidies for the construction of Hebei newplant||2,740,000.00||2,320,000.00||Relates to asset||
|Light vehicle technical transformationproject of Baoding Changan Bus||2,000,000.00||‐||Relates to asset||
|Others||2,639,000.00||3,348,093.62||Relates to gain||
||Total|196,086,391.16||402,264,192.28||||

53.Non‐operating expenses
||||||
|-|-|-|-|-|
|Item|2013|2012||Amount recognized as|
|||||non‐recurring profit|
|||||and loss|
|Loss on the disposal of fixed assets|18,587,591.13|4,115,881.11|18,587,591.13||
|Donation|6,585,829.09|6,993,629.00|6,585,829.09||
|Vehicle premium|1,027,400.00|591,800.00|1,027,400.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||
|-|-|-|-|-|
|Others||13,378,332.93|3,944,595.32|13,378,332.93|
||Total|39,579,153.15|15,645,905.43|39,579,153.15|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
54. Income tax expense
The relationship between income tax expense and total profit is as follows:
||||
|-|-|-|
|Item|2013|2012|
|Current income tax expense|(13,762,198.93)|191,768,486.79|
|Deferred income tax expense|(139,168,615.79)|(279,342,288.27)|
|Total|(152,930,814.72)|(87,573,801.48)|

||||
|-|-|-|
|Item|2013|2012|
|Total profit|3,315,561,534.94|1,327,433,853.73|
|Tax at the applicable tax rate (Note)|663,112,306.99|265,486,770.75|
|Impact of non‐uniform tax rates of subsidiaries|132,602,467.62|97,315,485.16|
|Adjustments to current income tax of previousperiod|(38,476,440.98)|7,418,071.08|
|Profit or loss attributable to joint ventures andassociates|(894,878,822.33)|(372,144,436.28)|
|Income not subject to tax|(6,270,640.68)|(1,200,000.00)|
|Non‐deductible tax expense|18,635,077.88|20,369,455.81|
|Deductible loss of previous period|(1,320,923.40)|(93,217,925.56)|
|Unrecognized tax loss|84,674,769.57|75,198,324.59|
|Additional deduction arising from research anddevelopment expense|(111,008,609.39)|(86,799,547.03)|
|Tax expense under actual tax rate of the Group|(152,930,814.72)|(87,573,801.48)|

 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 III 2), 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 byTrans‐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%.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
55. 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.
||||
|-|-|-|
||2013|2012|
|Earnings|||
|Net profit belong to ordinary shareholders|3,505,640,520.04|1,446,409,591.28|
|Shares|||
|Weighted average ordinary shares|4,662,886,108|4,705,785,218|

 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.
56. Other comprehensive income
||||||
|-|-|-|-|-|
||Item||2013|2012|
|1. Profits generated from available for salefinancial assets||23,505,316.00||8,684,620.00|
|Less: Available for sale financial assets arisingfrom income tax effect||4,101,329.00||662,405.00|
|2. Foreign currency reserve||1,270,030.45||2,907,312.72|
||Total|20,674,017.45||10,929,527.72|

 57. Notes to cash flow statement
(1) The major cash received relating to other operating activities:
||||
|-|-|-|
|Item|2013|2012|
|Interest income|142,089,807.55|117,277,942.68|
|Government grants related to operating activities|900,148,611.00|550,119,094.02|
|Total|1,042,238,418.55|667,397,036.70|

 (2) The major cash paid relating to other operating activities:
||||
|-|-|-|
|Item|2013|2012|
|Selling expense|3,354,757,149.80|2,432,625,135.40|
|Administrative expense|908,090,945.34|1,037,044,710.01|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||
|-|-|-|
|Total|4,262,848,095.14|3,469,669,845.41|

 (3) The major cash received relating to other investing activities:
||||
|-|-|-|
|Item|2013|2012|
|Government grants related to assets|26,545,952.00|205,000,000.00|
|Total|26,545,952.00|205,000,000.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(4) The major cash paid relating to other investing activities:
||||
|-|-|-|
|Item|2013|2012|
|Prepayment of equity investment|‐|703,015,710.00|
|Total|‐|703,015,710.00|

 (5) The major cash received relating to other financing activities:
||||
|-|-|-|
|Item|2013|2012|
|Withdraw for deposit of bill|256,922,675.77|119,759,876.44|

 (6) The major cash paid relating to other financing activities:
||||
|-|-|-|
|Item|2013|2012|
|Payment for deposit of bill|148,971,324.46|101,539,685.76|
|Purchased minority interest|9,028,000.00||
|Repurchased B share|‐|496,926,898.50|
|Total|157,999,324.46|598,466,584.26|

 58. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
||||||
|-|-|-|-|-|
||Supplementary information||2013|2012|
|1．Cash flows from operating activitiescalculated by adjusting the net profit|||||
|Net profit||3,468,492,349.66||1,415,007,655.21|
|Add: impairment provision for assets||331,591,654.04||258,718,995.15|
|Depreciation of fixed assets||1,303,650,347.30||898,841,770.23|
|Depreciation and amortization of investmentreal‐estate||75,298.14||2,372,133.45|
|Amortization of intangible assets||299,573,420.02||262,828,984.04|
|Amortization of long‐term deferred expense||1,839,102.88||1,420,994.64|
|Amortization of deferred income||(68,997,591.16)||(55,999,198.25)|
|Disposal loss on fixed assets, intangible assetsand others long‐term assets||12,900,068.51||2,659,276.68|
|Loss from fair value changes||332,407.00||1,193,392.63|
|Financial expense||206,023,838.42||142,198,712.84|
|Investment income||(4,506,602,315.09)||(1,868,541,181.38)|
|Increase in deferred tax assets||(139,168,615.79)||(279,342,288.27)|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||
|-|-|-|
|Decrease / (increase) in inventory|55,090,392.19|(859,352,007.03)|
|Increase in operating receivables|(3,593,256,572.11)|(4,134,084,440.27)|
|Increase in operating payables|4,459,431,473.34|4,723,962,873.71|
|Others|1,670,967.02|‐|
|Net cash flows from operating activities|1,832,646,224.37|511,885,673.38|
|2．Movement of cash and cash equivalents|||
|Ending balance of cash|3,770,426,812.29|3,585,495,012.22|
|Less: beginning balance of cash|3,585,495,012.22|4,238,710,712.49|
|Add: ending balance of cash equivalents|‐|‐|
|Less: beginning balance of cash equivalents|‐|‐|
|Increase in cash and cash equivalents|184,931,800.07|(653,215,700.27)|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) The majornon‐cash investing and financing activities:
||||
|-|-|-|
|Item|2013|2012|
|Government grants related to assets|133,700,647.00|860,000,000.00|

 (3) Cash and cash equivalents
||||||
|-|-|-|-|-|
|Item||2013||2012|
|I. Cash|||||
|Including: Cash on hand|78,225.44||32,745.00||
|Bank deposits that can be readily used|3,770,348,586.85||3,585,462,267.22||
|Other monetary assets that can be readily used|||‐||
|II. Cash equivalents|||‐||
|III. Ending balance of cash and cash equivalents|3,770,426,812.29||3,585,495,012.22||

 Note: The restricted cash and cash equivalents of the Group are not included in the cash and cash equivalents.
VI. Related party relationships and transactions
1. Criteria for the identification of related parties
If a party has the power to control, jointly control or exercise significant influence over another party, they are regarded as related parties. Two or more parties are also regarded as related parties if they are subject to control, or joint control influence from the same party.
The following are related parties of the Company:
(1) parents of the Company;
(2) subsidiaries of the Company;
(3) other enterprises that are controlled by the same parent as the Group;
(4) joint ventures in which the Group is an investor;
(5) associates of the Group;
(6) key management personnel of the Company or its parent, and close family members of such individuals;
(7) other enterprises that are controlled, jointly controlled, or significantly influenced by theCompany’s key management personnel, or close family members of such individuals.
Enterprises are not regarded as related parties simply because they are under the common control from the State, if no other related party relationships exist between them.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2. Parent company
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Parent|Place ofregistration|Registered capital|Organizationcode|Nature of thebusiness||Proportion of||Proportion of|Corporate type|Legalrepresentative|
|||||||shares in the||voting rights in the|||
|||||||Company||company|||
|China ChanganAutomobile GroupCo ,Ltd|Beijing|4,582,373,700.00|71093394‐8|Manufacture andsale ofautomobiles,engine, andcomponents|41.04%||41.04%||Company limited byshares|Xu Liuping|

The registered capital andpaid‐up capital was unchanged in 2013.
Refer to Note IV “Scope of consolidation for consolidated financial statements” for details of theGroup’s subsidiaries.
3. Other related parties
|||||||
|-|-|-|-|-|-|
||Related parties||Relationship||Organization code|
|China South Industries Group Corporation||Ultimate holding company||71092492‐9||
|Changan Ford Mazda Engine Co., Ltd||Joint venture||71785962‐1||
|Changan Ford Automobile Co., Ltd||Joint venture||70937510‐9||
|Changan Mazda Automobile Co., Ltd||Joint Venture||71788527‐2||
|Chongqing Changan Suzuki Automobile Co., Ltd||Joint venture||62190016‐7||
|Jiangling Holding Co., Ltd||Joint venture||76703230‐7||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
||Related parties||Relationship||Organization code|
|Chongqing HelpGo Information Technology Co., Ltd||Associate||70932938‐0||
|Chongqing Changan Kuayue Automobile Co., Ltd||Associate||20287102‐3||
|Chongqing Xiyi Automobile Linkage Rod Co., Ltd.||Associate||79589352‐6||
|China Changan Automobile Co., Ltd ‐ Jian'an Automobile Bridge Branch (hereafter referredto as “CSIA ‐ Jian'an Automobile Bridge Branch”)||Branch of parent||79184573‐8||
|China Changan Automobile Co., Ltd – Chongqing Tsingshan Transmission Branch (hereafterreferred to as “CSIA‐Chongqing Tsingshan Transmission Branch”)||Branch of parent||79350521‐9||
|China Changan Automobile Co., Ltd – Chengdu Jian'an Automobile Bridge Branch||Branch of parent||79219314‐5||
|South Tianhe Chassis System Co., Ltd||Controlled by the same parent company||77487491‐6||
|South Inter Air‐conditioner Co, .Ltd||Controlled by the same parent company||62192592‐X||
|Chongqing Changfeng Jiquan Machinery Co., Ltd||Controlled by the same parent company||74745528‐1||
|Chongqing Automobile Air‐conditioner Co., Ltd||Controlled by the same parent company||20304827‐4||
|Hafei Motor Co., Ltd||Controlled by the same parent company||60716197‐8||
|Harbin Dongan Auto Engine Co., Ltd||Controlled by the same parent company||71201745‐X||
|Harbin Dongan Automotive Engine Manufacturing Co., Ltd||Controlled by the same parent company||71201711‐8||
|Jiangxi Changhe Suzuki Automobile Co., Ltd||Controlled by the same parent company||61271096‐X||
|Chongqing Anfu Automobile Co., Ltd||Controlled by the same parent company||73657088‐2||
|Chengdu Ningxing Automobile Spring Co., Ltd||Controlled by the same parent company||72343715‐0||
|China Changan Automobile Group Tianjin Sales Co., Ltd||Controlled by the same parent company||56610492‐5||
|China Changan Automobile Group Chongqing Guangda Sales Co., Ltd||Controlled by the same parent company||55204911‐X||
|Chengdu Huachuan Electric Equipment Co., Ltd||Controlled by the same parent company||73021809‐5||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
||Related parties||Relationship||Organization code|
|Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd||Controlled by the same parent company||20224398‐3||
|Hefei Changan Automobile Co., Ltd (former name: Hefei Changhe Automobile Co., Ltd)||Controlled by the same parent company||66143118‐2||
|Wanyou Automobile Investment Co., Ltd||Controlled by the same parent company||59920037‐4||
|United Prosperity Investment Co., Ltd||Controlled by the same parent company||1703341||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd||Controlled by the same ultimate holding company||78914008‐5||
|Chongqing Changan Construction Co., Ltd||Controlled by the same ultimate holding company||20281750‐9||
|Chongqing Changan Min Sheng Logistics Co., Ltd.||Controlled by the same ultimate holding company||70942619‐9||
|Sichuan Hongguang Machinery and Electrics Co., Ltd||Controlled by the same ultimate holding company||62170388‐4||
|Beijing Beiji Mechanical and Electrical Industry Co., Ltd||Controlled by the same ultimate holding company||10110292‐X||
|Chongqing Changan Real Estate Development Co., Ltd||Controlled by the same ultimate holding company||20283366‐8||
|China South Industry Group Finance Co., Ltd||Controlled by the same ultimate holding company||71093365‐7||
|Changan Industries Group Co. Ltd||Controlled by the same ultimate holding company||20281485‐4||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd||Controlled by the same ultimate holding company||72807819‐3||
|Chengdu Lingchuan Special Industry Co., Ltd||Controlled by the same ultimate holding company||66302209‐1||
|Chengdu Wanyou Economic Technological Development Co., Ltd||Controlled by the same ultimate holding company||20196934‐4||
|Chengdu Wanyou Filter Co., Ltd||Controlled by the same ultimate holding company||62170342‐X||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd||Controlled by the same ultimate holding company||71466819‐2||
|Southwest Ordnance Industry Corporation||Controlled by the same ultimate holding company||20281049‐0||
|Yunnan Xiyi Industries Co., Ltd||Controlled by the same ultimate holding company||21652160‐6||
|Chongqing Changrong Machinery Co., Ltd||Controlled by the same ultimate holding company||70946451‐5||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd||Controlled by the same ultimate holding company||70943915‐X||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
||Related parties||Relationship||Organization code|
|Chongqing Dajiang Yuqiang Plastic Co., Ltd||Controlled by the same ultimate holding company||62190601‐6||
|Chongqing Jianshe Automobile Air‐conditioner Co., Ltd||Controlled by the same ultimate holding company||75925214‐X||
|Chongqing Qingshan Transmission Sales Co., Ltd||Controlled by the same ultimate holding company||20314556‐8||
|Chongqing Shangfang Automobile Fittings Co., Ltd||Controlled by the same ultimate holding company||75008974‐5||
|Chongqing Wanyou Economic Development Co., Ltd||Controlled by the same ultimate holding company||20286206‐3||
|Chongqing Wanyou Auto Sales and Service Corporation||Controlled by the same ultimate holding company||20280671‐5||
|Chongqing Yihong Engineering Plastic Products Co., Ltd||Controlled by the same ultimate holding company||62190975‐1||
|Guangxi Wanyou Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||75978537‐6||
|Guizhou Wanyou Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||70960979‐6||
|Yunnan Wanyou Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||70970600‐0||
|Nanning Wanyou Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||55940430‐5||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||55357636‐8||
|Longchang Shanchuan Shock‐absorbing Vehicles Parts Co., Ltd||Controlled by the same ultimate holding company||68994618‐8||
|Chongqing Changan Visteon Engine Control Systems Co., Ltd.||Controlled by the same ultimate holding company||76268659‐8||
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd||Controlled by the same ultimate holding company||78011710‐2||
|Chongqing Changan Property Management Co., Ltd.||Controlled by the same ultimate holding company||20281081‐0||
|Chongqing Wanyou Construction Co., Ltd||Controlled by the same ultimate holding company||20284068‐1||
|Chengdu Wanyou Trading Co., Ltd||Controlled by the same ultimate holding company||72035779‐6||
|Suining Wanyou Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||55347932‐2||
|Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||58283437‐0||
|Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd||Controlled by the same ultimate holding company||56992153‐3||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
||Related parties||Relationship||Organization code|
|Jiangxi Changhe Automobile Co., Ltd||Historical related party||67799358‐5||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
4. 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||2013||||2012|||
|||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
||||||similar||||similar|
||||||transactions||||transactions|
||||||(%)||||(%)|
|CSIA‐Chongqing Tsingshan Transmission Branch|Purchase of spare parts|1,295,873,099.36||4.01||1,038,985,652.62||4.29||
|Chongqing Changan Min Sheng Logistics Co., Ltd|Transportation fee|1,117,527,192.02||3.45||1,165,773,472.77||4.81||
|CSIA‐Jian'an Automobile Bridge Branch|Purchase of spare parts|612,767,249.87||1.89||722,032,555.45||2.99||
|Harbin Dongan Automobile Engine Manufacture Co., Ltd|Purchase of spare parts|494,939,184.60||1.53||349,343,256.09||1.44||
|South Tianhe Chassis System Co., Ltd|Purchase of spare parts|420,408,104.34||1.30||382,274,299.45||1.58||
|Hafei Automobile Co., Ltd.|Purchase of spare parts andaccept service|243,102,302.79||0.75||135,260,550.12||0.56||
|Chengdu Huachuan Electric Equipment Co., Ltd|Purchase of spare parts|219,977,621.53||0.68||219,982,385.77||0.91||
|Chongqing Jianshe Automobile Air‐conditioner Co., Ltd|Purchase of spare parts|123,763,784.52||0.38||98,863,912.19||0.41||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd|Purchase of spare parts|110,242,759.07||0.34||88,439,810.61||0.37||
|Changan Ford Automobile Co., Ltd|Purchase of spare parts|110,080,523.38||0.34||134,641,793.90||0.56||
|Chongqing Changrong Machinery Co., Ltd|Purchase of spare parts|109,594,507.93||0.34||140,654,237.69||0.58||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties|Nature of the transaction||2013||||2012|||
|||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
||||||similar||||similar|
||||||transactions||||transactions|
||||||(%)||||(%)|
|Chongqing Shangfang Automobile Fittings Co., Ltd|Purchase of spare parts|101,945,038.87||0.32||109,513,539.04||0.45||
|South Inter Air‐conditioner Co, .Ltd|Purchase of spare parts|98,941,438.34||0.31||60,759,932.62||0.25||
|Longchang Shanchuan Shock‐absorbing Vehicles Parts Co.,Ltd|Purchase of spare parts|93,697,109.10||0.29||110,344,748.23||0.46||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd|Purchase of spare parts|84,922,504.44||0.26||83,388,543.73||0.34||
|Chengdu Lingchuan Special Industry Co., Ltd|Purchase of spare parts|81,130,188.54||0.25||109,107,580.75||0.45||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd|Purchase of spare parts|76,711,528.95||0.24||67,154,702.31||0.28||
|Sichuan Hongguang Machinery and Electrics Co., Ltd|Purchase of spare parts|71,461,920.47||0.22||95,994,898.73||0.40||
|Chongqing Wanyou Economic Development Co., Ltd|Purchase of spare parts|70,274,425.03||0.22||61,539,068.50||0.25||
|Chengdu Wanyou Filter Co., Ltd|Purchase of spare parts|63,524,086.01||0.20||40,918,233.07||0.17||
|Yunnan Xiyi Industries Co., Ltd|Purchase of spare parts|47,175,847.18||0.15||34,034,871.00||0.14||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd|Purchase of spare parts|36,492,354.22||0.11||21,533,414.79||0.09||
|Chongqing Xiyi Automobile Linkage Rod Co., Ltd|Purchase of spare parts|34,890,787.40||0.11||40,665,013.98||0.17||
|Changan Industries Group Co. Ltd|Purchase of spare parts andaccept service|34,219,835.04||0.11||48,706,457.72||0.20||
|China Changan Automobile Co., Ltd – Chengdu Jian'anAutomobile Bridge Branch|Purchase of spare parts|31,861,014.37||0.10||‐||‐||
|Chongqing Changfeng Jiquan Machinery Co., Ltd|Purchase of spare parts|20,755,652.85||0.06||20,718,099.19||0.09||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties|Nature of the transaction||2013||||2012|||
|||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
||||||similar||||similar|
||||||transactions||||transactions|
||||||(%)||||(%)|
|Chongqing Changan Visteon Engine Control Systems Co., Ltd|Purchase of spare parts|18,043,745.48||0.06||21,801,526.96||0.09||
|Chongqing Yihong Engineering Plastic Products Co., Ltd|Purchase of spare parts|11,582,240.67||0.04||7,745,054.15||0.03||
|Chengdu Ningxing Automobile Spring Co., Ltd|Purchase of spare parts|8,732,231.99||0.03||6,205,442.67||0.03||
|Chongqing Qingshan Transmission Sales Co., Ltd|Purchase of spare parts|5,926,883.55||0.02||11,366,373.51||0.05||
|Harbin Dongan Auto Engine Co., Ltd|Purchase of spare parts|4,713,334.50||0.01||31,098,037.55||0.13||
|Chongqing Changan Property Management Ltd|Accept service|2,936,383.54||0.01||5,076,569.49||0.02||
|Changan Mazda Automobile Co., Ltd|Purchase of spare parts|814,666.67||0.00||‐||‐||
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd|Purchase of spare parts|777,349.40||0.00||1,350,315.52||0.01||
|United Prosperity Investment Co., Ltd|Accept service|762,048.00||0.00||‐||‐||
|Chongqing Changan Suzuki Automobile Co., Ltd|Purchase of spare parts|684,000.00||0.00||2,855,275.76||0.01||
|Beijing Beiji Mechanical and Electrical Industry Co., Ltd|Purchase of spare parts|273,189.39||0.00||182,011.92||0.00||
|Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd|Purchase of spare parts|164,456.86||0.00||3,632,354.05||0.02||
|Chongqing Dajiang Yuqiang Plastic Co., Ltd|Purchase of spare parts|116,385.29||0.00||143,412.31||0.00||
|Chongqing Changan Kuayue Automobile Co., Ltd|Purchase of spare parts|‐||‐||40,900,241.88||0.17||
|Jiangxi Changhe Suzuki Automobile Co., Ltd|Purchase of spare parts|‐||‐||5,798,444.44||0.02||
|Chongqing Changan Construction Engineering Co., Ltd|Accept service|‐||‐||254,875.00||0.00||
|Chongqing Automobile Air‐conditioner Co., Ltd|Purchase of spare parts|‐||‐||140,370.31||0.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Related parties||Nature of the transaction||2013||||2012|||
||||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
|||||||similar||||similar|
|||||||transactions||||transactions|
|||||||(%)||||(%)|
||Total||5,861,806,975.56||18.13||5,519,181,335.84||22.82||

 The price of theGroup’s purchase from related parties is based on contracts agreed by both parties.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Sales of goods and services to related parties
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties|Nature of the transaction||2013||||2012|||
|||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
||||||similar||||similar|
||||||transactions||||transactions|
||||||(%)||||(%)|
|Chongqing Wanyou Economic Development Co., Ltd|Sale of cars and spare parts|1,183,316,184.16||3.07||848,723,967.15||2.88||
|Yunnan Wanyou Auto Sales and Service Co., Ltd|Sale of cars and spare parts|787,473,701.16||2.05||404,107,718.79||1.37||
|Chengdu Wanyou Economic Technological Development Co.,Ltd|Sale of cars, spare parts andproviding outsourcingprocessing|754,115,231.30||1.96||974,015,689.32||3.31||
|Guizhou Wanyou Auto Sales and Service Co., Ltd|Sale of cars and spare parts|678,089,089.90||1.76||535,736,497.53||1.82||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd|Sale of cars|609,211,116.96||1.58||349,584,628.19||1.19||
|Wanyou Automobile Investment Co., Ltd|Sale of cars and spare parts|514,525,042.46||1.34||‐||‐||
|Southwest Industries Corporation|Sale of cars|425,659,660.31||1.11||1,371,842,702.27||4.66||
|Changan Ford Automobile Co., Ltd|Sale of spare parts, providingoutsourcing processing andservice|170,084,840.02||0.44||212,518,588.98||0.72||
|Guangxi Wanyou Auto Sales and Service Co., Ltd|Sale of cars and spare parts|133,437,661.45||0.35||98,797,190.52||0.34||
|China Changan Automobile Group Tianjin Sales Co., Ltd|Sale of cars|77,244,057.14||0.20||42,875,756.64||0.15||
|Nanning Wanyou Auto Sales and Service Co., Ltd|Sale of cars|61,605,394.95||0.16||61,806,527.82||0.21||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd|Sale of spare parts|61,159,960.80||0.16||50,115,238.06||0.17||
|Sichuan Hongguang Machinery and Electrics Co., Ltd|Sale of spare parts|45,514,079.66||0.12||52,339,966.93||0.18||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties|Nature of the transaction||2013||||2012|||
|||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
||||||similar||||similar|
||||||transactions||||transactions|
||||||(%)||||(%)|
|Chengdu Lingchuan Special Industry Co., Ltd|Sale of spare parts|35,525,974.37||0.09||49,805,980.01||0.17||
|Harbin Dongan Automobile Engine Manufacture Co., Ltd|Sale of spare parts andproviding service|28,953,587.77||0.08||170,461.55||0.00||
|Chongqing Shangfang Automobile Fittings Co., Ltd|Sale of spare parts|10,909,651.41||0.03||9,460,595.31||0.03||
|Jiangxi Changhe Automobile Co., Ltd|providing system maintenanceand service|9,757,440.57||0.03||23,912,617.10||0.08||
|China South Industry Group Finance Co., Ltd|Providing service|8,403,033.00||0.02||‐||‐||
|Chongqing Anfu Automobile Co.,Ltd|Sale of cars and spare parts|6,664,606.85||0.02||1,416,239.31||0.00||
|Chongqing Changan Suzuki Automobile Co., Ltd|Sale of spare parts|4,708,877.27||0.01||6,860,540.02||0.02||
|Hefei Changan Automobile Co., Ltd (former name: HefeiChanghe Automobile Co., Ltd)|Sale of spare parts andproviding system maintenanceand service|4,671,995.52||0.01||2,641,684.12||0.01||
|Yunnan Xiyi Industries Co., Ltd|Sale of spare parts|1,815,400.00||0.01||394,846.16||0.00||
|Chongqing Changan Kuayue Automobile Co., Ltd|Sale of spare parts|1,781,538.46||0.00||1,314,188.03||0.00||
|Jiangling Holding Co., Ltd|Sale of spare parts, providingsystem maintenance service|1,561,537.31||0.00||4,835,009.65||0.02||
|CSIA‐Jian'an Automobile Bridge Branch|Providing system maintenanceservice|700,000.00||0.00||60,000.00||0.00||
|Changan Industries Group Co. Ltd|Sale of spare parts|633,182.02||0.00||2,229,863.72||0.01||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Related parties||Nature of the transaction||2013||||2012|||
||||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
|||||||similar||||similar|
|||||||transactions||||transactions|
|||||||(%)||||(%)|
|Changan Ford Mazda Engine Co., Ltd||Sale of spare parts|341,880.34||0.00||‐||‐||
|Chongqing Changan Min Sheng Logistics Co., Ltd||Sale of spare parts|282,974.34||0.00||230,887.01||0.00||
|Chongqing Jianshe Automobile Air‐conditioner Co., Ltd||Providing service|62,815.10||0.00||49,200.00||0.00||
|China Changan Automobile Group Chongqing Guangda SalesCo., Ltd||Sale of cars|‐||‐||41,951,027.47||0.14||
|Hafei Motor Co., Ltd||Sale of spare parts|‐||‐||12,400,512.86||0.04||
|Changan Mazda Automobile Co., Ltd||Providing system services andmaintenance|‐||‐||867,750.00||0.00||
|Chongqing Changan Visteon Engine Control Systems Co., Ltd||Maintenance|‐||‐||369,298.80||0.00||
|CSIA‐Chongqing Tsingshan Transmission Branch||Sale of spare parts|‐||‐||20,348.72||0.00||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd||Maintenance|‐||‐||6,700.00||0.00||
|Chengdu Huachuan Electric Equipment Co., Ltd||Sale of spare parts|‐||‐||4,200.00||0.00||
||Total||5,618,210,514.60||14.60||5,161,466,422.04||17.52||

 The price of theGroup’s sales to related parties is based on contracts agreed by all parties.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Other majorrelated‐party transactions
The price of theGroup’s other majorrelated‐party transactions is based on contracts agreed by all parties.
Expenses of integrated service charges
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related parties||Nature of the transaction|2013|||2012|||
||||Amount||Proportion of similar|Amount||Proportion of similar|
||||||transactions (%)|||transactions (%)|
|Changan Industries GroupCo. Ltd||Payment of land rental fees|23,712,951.00|11.13||26,328,123.90|9.85||
|Changan Industries GroupCo. Ltd||Payment of building rental fees|36,342,652.70|17.06||32,898,991.20|12.31||
|Changan Industries GroupCo. Ltd||Payment of utilities|135,487,132.14|63.62||174,254,281.80|65.19||
|Changan Industries GroupCo. Ltd||Payment of firefighting fees|2,740,000.00|1.29||2,740,000.00|1.02||
|Changan Industries GroupCo. Ltd||Others|14,686,277.48|6.90||31,075,678.13|11.63||
||Total||212,969,013.32|100.00||267,297,075.03|100.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Purchase of project materials
|||||||||
|-|-|-|-|-|-|-|-|
|Related parties||2013|||2012|||
|||Amount||Proportion of similar|Amount||Proportion of similar|
|||||transactions (%)|||transactions (%)|
|Chongqing Changan Construction Co., Ltd||88,476,083.75|4.08||268,180,173.10|6.55||
|Chongqing Changan Min Sheng Logistics Co., Ltd||26,876,099.26|1.24||5,917,238.17|0.14||
|Changan Industries Group Co. Ltd||1,145,433.72|0.05||1,013,733.00|0.02||
|Chongqing HelpGo Information Technology Co., Ltd||‐|‐||4,772,701.38|0.12||
||Total|116,497,616.73|5.37||279,883,845.65|6.83||

 Staff expenses for technical supporting
|||||||||
|-|-|-|-|-|-|-|-|
|Related parties||2013|||2012|||
||Amount|Amount||Proportion of similar|Amount||Proportion of similar|
|||||transactions (%)|||transactions (%)|
|Changan Ford Automobile Co., Ltd|39,831,638.20||46.00||2,395,840.00|28.73||
|Changan Mazda Automobile Co., Ltd|23,978,538.68||27.68||‐|‐||
|Changan Ford Mazda Engine Co., Ltd|16,850,588.80||19.46||‐|‐||
|Chongqing Changan Suzuki Automobile Co., Ltd|4,301,808.00||4.97||5,818,060.00|69.77||
|Jiangling Holding Co., Ltd|1,279,403.20||1.48||‐|‐||
|Hafei Motor Co., Ltd|259,600.00||0.30||‐|‐||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related parties|||2013|||2012|||
|||Amount|Amount||Proportion of similar|Amount||Proportion of similar|
||||||transactions (%)|||transactions (%)|
|Harbin Dongan Auto Engine Co., Ltd||93,928.00||0.11||‐|‐||
|Changan Industries Group Co. Ltd||‐||‐||125,162.08|1.50||
||Total|86,595,504.88||100.00||8,339,062.08|100.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Trademark license income
|||||||||
|-|-|-|-|-|-|-|-|
|Related parties||2013|||2012|||
||Amount|Amount||Proportion of similar|Amount||Proportion of similar|
|||||transactions (%)|||transactions (%)|
|Chongqing Changan Kuayue Automobile Co.,Ltd|2,907,420.00||100.00||5,532,000|100.00||

 Technical service income
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related parties|||2013|||2012|||
|||Amount|Amount||Proportion of similar|Amount||Proportion of similar|
||||||transactions (%)|||transactions (%)|
|Chongqing Changan Suzuki Automobile Co., Ltd||5,500,000.00||100.00||4,400,000.00|10.24||
|Hafei Automobile Co., Ltd||‐||‐||34,526,696.28|80.31||
|Hefei Changan Automobile Co., Ltd (former name: HefeiChanghe Automobile Co., Ltd)||‐||‐||3,200,000.00|7.44||
|Jiangxi Changhe Automobile Co., Ltd||‐||‐||862,283.95|2.01||
||Total|5,500,000.00||100.00||42,988,980.23|100.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Capital occupied income
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related parties|||2013|||2012|||
|||Amount|Amount||Proportion of similar|Amount||Proportion of similar|
||||||transactions (%)|||transactions (%)|
|Chengdu Wanyou Economic Technological Development Co.,Ltd||3,896,167.53||51.78||4,902,996.65|56.23||
|Southwest Ordnance Industry Corporation||1,963,623.08||26.10||2,576,068.33|29.55||
|Wanyou Automobile Investment Co., Ltd||935,000.85||12.42||‐|‐||
|Chongqin Wanyou Economic Technological Development Co.,Ltd||521,365.79||6.93||594,521.86|6.82||
|Guizhou Wanyou Auto Sales and Service Co., Ltd||151,794.87||2.02||190,679.48|2.19||
|Guangxi Wanyou Auto Sales and Service Co., Ltd||56,455.56||0.75||196,123.07|2.25||
|China Changan Automobile Group Chongqing Guangda SalesCo., Ltd||‐||‐||96,755.56|1.11||
|Nanning Wanyou Auto Sales and Service Co., Ltd||‐||‐||93,122.22|1.07||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd||‐||‐||25,613.68|0.29||
|China Changan Automobile Group Tianjin Sales Co., Ltd||‐||‐||24,943.59|0.29||
|Yunnan Wanyou Auto Sales and Service Co., Ltd||‐||‐||17,677.78|0.20||
||Total|7,524,407.68||100.00||8,718,502.22|100.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) Lease between related parties
Rent assets from related parties
2013
||||||||||
|-|-|-|-|-|-|-|-|-|
|Lessor|Lessee|Type of leased assets|Starting date|Expiring date||The basis for rental||Yearly recognized|
|||||||pricing||rental|
|Chongqing Changan Real EstateDevelopment Co., Ltd|Chongqing Changan|Office building|2013.01.01|2013.12.31|Based on agreement||2,255,316.00||
|Chongqing Changan Real EstateDevelopment Co., Ltd|Chongqing Changan|Office building|2013.01.01|2013.12.31|Based on agreement||1,186,682.00||
|Chongqing Changan Min Sheng LogisticsCo., Ltd|Chongqing Changan|Storage|2013.01.01|2013.12.31|Based on agreement||5,235,713.92||
|Chongqing Changan Min Sheng LogisticsCo., Ltd|Chongqing Changan|Storage|2013.01.01|2013.12.31|Based on agreement||698,739.20||
|Hafei Motor Co., Ltd|Chongqing Changan|Office building|2013.01.01|2013.12.31|Based on agreement||1,568,920.00||

 2012
||||||||||
|-|-|-|-|-|-|-|-|-|
|Lessor|Lessee|Type of leased assets|Starting date|Expiring date||The basis for rental||Yearly recognized|
|||||||pricing||rental|
|Chongqing Changan Real EstateDevelopment Co., Ltd|Chongqing Changan|Office building|2012.01.01|2012.12.31|Based on agreement||3,562,896.00||
|Chongqing Changan Real Estate|Chongqing Changan|Office building|2011.01.01|2012.12.31|Based on agreement||1,190,532.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||
|-|-|-|-|-|-|-|
|Development Co., Ltd|||||||
|Chongqing Changan Min Sheng LogisticsCo., Ltd|Chongqing Changan|Storage|2012.05.01|2012.12.31|Based on agreement|5,561,102.44|
|Chongqing Changan Min Sheng LogisticsCo., Ltd|Chongqing Changan|Storage|2011.01.01|2012.12.31|Based on agreement|269,416.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(3) Transfer of assets between related parties
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related party|Note|Type of transaction|2013|||2012|||
||||Amount||Proportion of|Amount||Proportion of|
||||||similar transactions|||similar|
||||||(%)|||transactions (%)|
|China ChanganAutomobile GroupCo.,Ltd|(Note1)|Transfer of equity|1,304,408,890.00|100.00||703,015,710.00|100.00||

Note1: In December 2013, the Group paid the equity investment transfer price with the amount of RMB1,304,408,890.00 to its parent company China Changan. Refer to Note V 11. (4) Guarantee of related party
In 2013, 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||2013||2012|
|Compensation of key management personal||12,654,134.88||8,492,968.57||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
5. Amounts due from/to related parties
Notes receivable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Related party||||2013||||2012|||
||||Amount|Amount||Proportion of notes|Amount|Amount||Proportion of notes|
|||||||receivable (%)||||receivable (%)|
|Wanyou Automobile Investment Co., Ltd|||627,000,000.00||5.56||‐||‐||
|Yunnan Wanyou Auto Sales and Service Co., Ltd|||401,000,000.00||3.56||762,895,000.00||8.15||
|Chongqing Wanyou Economic Technological Development Co., Ltd|||366,730,000.00||3.25||322,337,000.00||3.43||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd|||127,500,000.00||1.13||191,000,000.00||2.04||
|Guizhou Wanyou Auto Sales and Service Co., Ltd|||114,950,000.00||1.02||256,350,000.00||2.74||
|China Changan Automobile Group Tianjin Sales Co., Ltd|||36,000,000.00||0.32||13,900,000.00||0.15||
|Guangxi Wanyou Auto Sales and Service Co., Ltd|||31,400,000.00||0.28||30,700,000.00||0.33||
|Nanning Wanyou Auto Sales and Service Co., Ltd|||27,950,000.00||0.25||36,450,000.00||0.39||
|Chengdu Wanyou Economic Technological Development Co., Ltd|||21,000,000.00||0.19||271,400,000.00||2.90||
|Southwest Ordnance Industry Corporation|||‐||‐||62,000,000.00||0.66||
||Tot|al|1,753,530,000.00||15.56||1,947,032,000.00||20.79||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Accounts receivable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Related party||2013|||||2012||||
||Balance|Balance|Provision||Proportion of|Balance|Balance|Provision||Proportion of|
||||||accounts receivable|||||accounts receivable|
||||||(%)|||||(%)|
|Changan Ford Automobile Co., Ltd|67,203,793.50||‐|15.39||52,327,516.83||‐|10.49||
|Harbin Dongan Automobile Engine Manufacture Co., Ltd|28,083,882.87||‐|6.43||‐||‐|‐||
|Changan Mazda Automobile Co., Ltd|22,058,248.72||‐|5.05||‐||‐|‐||
|Changan Ford Mazda Engine Co., Ltd|13,994,402.88|||3.21||‐||‐|‐||
|Jiangxi Changhe Automobile Co., Ltd|10,322,428.89||‐|2.36||906,667.45||‐|0.18||
|Chongqing Changan Kuayue Automobile Co., Ltd|7,997,692.00||‐|1.83||5,532,000.00||‐|1.11||
|Jiangling Holding Co., Ltd|6,187,757.28||‐|1.42||7,356,903.60||‐|1.48||
|Chongqing Anfu Automobile sales Co., Ltd|3,908,410.00||‐|0.90||3,099,525.00||‐|0.62||
|Chongqing Changan Suzuki Automobile Co., Ltd|3,401,258.46||‐|0.78||11,448,769.63||‐|2.30||
|China South Industry Group Finance Co., Ltd|1,985,948.00||‐|0.45||‐||‐|‐||
|Hafei Automobile Co., Ltd|259,600.00||‐|0.06||74,538,322.68||‐|14.95||
|Hefei Changan Automobile Co., Ltd (former name: Hefei ChangheAutomobile Co., Ltd)|36,279.10||‐|0.01||1,362,500.00||‐|0.27||
|Chengdu Wanyou Economic Technological Development Co., Ltd|1,043.72||‐|0.00||‐||‐|‐||
|Yunnan Wanyou Auto Sales and Service Co., Ltd|895.31||‐|0.00||‐||‐|‐||
|Guizhou Wanyou Auto Sales and Service Co., Ltd|372.52||‐|0.00||372.52||‐|0.00||
|Chongqing Wanyou Economic Development Co., Ltd|272.57||‐|0.00||‐||‐|‐||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Related party|||2013|||||2012||||
|||Balance|Balance|Provision||Proportion of|Balance|Balance|Provision||Proportion of|
|||||||accounts receivable|||||accounts receivable|
|||||||(%)|||||(%)|
|Changan Industries Group Co. Ltd||‐||‐|‐||4,018,844.47||‐|0.81||
|CSIA‐Jian'an Automobile Bridge Branch||‐||‐|‐||10,020.75||‐|0.00||
||Total|165,442,285.82||‐|37.89||160,601,442.93||‐|32.21||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Prepayments
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related party|||2013||||2012|||
|||Amount|Amount||Proportion of|Amount|Amount||Proportion of|
||||||prepayments (%)||||prepayments (%)|
|United Prosperity Investment Co., Ltd||2,096,569.86||0.30||‐||‐||
|Hafei Automobile Co., Ltd||696,224.48||0.10||‐||‐||
|Changan Ford Automobile Co., Ltd||‐||‐||112,028.00||0.02||
|Chongqing Changan Suzuki Automobile Co., Ltd||‐||‐||271,013.41||0.05||
||Total|2,792,794.34||0.40||383,041.41||0.07||

 Othernon‐current assets
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related party||2013||||2012|||
||Amount|Amount||Proportion of other|Amount|Amount||Proportion of other|
|||||non‐current assets (%)||||non‐current assets (%)|
|China Changan Automobile Group Co., Ltd|‐||‐||703,015,710.00||76.13||

 Notes payable
|||||||
|-|-|-|-|-|-|
|Related party||2013||2012||
||Amount|Amount|Proportion of notes|Amount|Proportion of notes|
||||payable (%)||payable (%)|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||2013|||2012|||
||Amount|Amount||Proportion of notes|Amount||Proportion of notes|
|||||payable (%)|||payable (%)|
|Hafei Motor Co., Ltd|525,110,000.00||5.59||276,250,000.00|3.55||
|South Tianhe Chassis System Co., Ltd|209,093,904.12||2.23||162,006,319.18|2.08||
|Harbin Dongan Automotive Engine Manufacturing Co., Ltd.|91,690,000.00||0.98||182,200,000.00|2.33||
|CSIA‐Jian’an Automobile Bridge Branch|88,095,407.62||0.94||178,314,554.01|2.29||
|Harbin Dongan Auto Engine Co., Ltd|51,010,000.00||0.54||18,900,000.00|0.24||
|South Inter Air‐conditioner Co, .Ltd|48,698,932.30||0.52||29,613,854.88|0.38||
|CSIA‐Chongqing Tsingshan Transmission Branch|42,144,317.79||0.45||2,268,306.66|0.03||
|Chongqing Shangfang Automobile Fittings Co., Ltd|31,214,565.98||0.33||39,081,924.78|0.50||
|Chongqing Changan Min Sheng Logistics Co., Ltd|29,138,317.66||0.31||43,755,812.32|0.56||
|Chengdu Wanyou Filter Co., Ltd|28,563,390.83||0.30||22,096,201.00|0.28||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd|28,348,693.18||0.30||8,860,000.00|0.11||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd|26,860,821.95||0.29||38,282,895.33|0.49||
|China Changan Automobile Co., Ltd – Chengdu Jian'an AutomobileBridge Branch|25,648,950.85||0.27||‐|‐||
|Yunnan Xiyi Industries Co., Ltd|25,290,000.00||0.27||24,000,000.00|0.31||
|Chengdu Lingchuan Special Industry Co., Ltd|25,218,082.88||0.27||25,558,716.30|0.33||
|Chengdu Huachuan Electric Equipment Co., Ltd|25,097,237.03||0.27||34,722,339.00|0.44||
|Chongqing Changan Construction Co., Ltd|24,874,994.00||0.26||103,209,913.00|1.32||
|Chongqing Changrong Machinery Co., Ltd|21,392,316.02||0.23||31,974,382.91|0.41||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related party|||2013|||2012|||
|||Amount|Amount||Proportion of notes|Amount||Proportion of notes|
||||||payable (%)|||payable (%)|
|Chongqing Jianshe Automobile Air‐conditioner Co., Ltd||20,460,000.00||0.22||37,870,739.00|0.48||
|Longchang Shanchuan Shock‐absorbing Vehicles Parts Co., Ltd||20,273,518.35||0.22||34,303,459.15|0.44||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd||16,915,080.11||0.18||20,292,497.59|0.26||
|Sichuan Hongguang Machinery and Electrics Co., Ltd||16,520,000.00||0.18||18,240,000.00|0.23||
|Chongqing Wanyou Construction Co., Ltd||12,190,614.00||0.13||‐|‐||
|Chongqing Yihong Engineering Plastic Products Co., Ltd||7,882,093.12||0.08||5,240,000.00|0.07||
|Chongqing Xiyi Automobile Linkage Rod Co., Ltd||7,130,000.00||0.08||10,480,000.00|0.13||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd||6,400,584.67||0.07||19,850,000.00|0.25||
|Chengdu Ningxing Automobile Spring Co., Ltd||3,360,588.86||0.04||3,460,000.00|0.04||
|Chongqing Changfeng Jiquan Machinery Co., Ltd||1,410,481.31||0.01||‐|‐||
|Chongqing Changan Property Management Ltd.||1,098,960.00||0.01||100,000.00|0.00||
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd||430,000.00||0.00||‐|‐||
|Changan Industries Group Co. Ltd||262,629.65||0.00||‐|‐||
|Chongqing Changan Kuayue Automobile Co., Ltd||‐||‐||12,230,000.00|0.16||
|Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd||‐||‐||2,060,000.00|0.03||
||Total|1,461,824,482.28||15.57||1,385,221,915.11|17.74||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Accounts payable
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||2013|||2012|||
||Amount|Amount||Proportion of accounts|Amount||Proportion of accounts|
|||||payable (%)|||payable (%)|
|Hafei Motor Co., Ltd|211,566,557.98||2.76||128,719,099.88|1.79||
|South Tianhe Chassis System Co., Ltd|102,069,855.54||1.33||124,459,879.25|1.74||
|CSIA‐Jian’an Automobile Bridge Branch|83,012,150.58||1.08||111,077,271.38|1.55||
|CSIA‐Chongqing Tsingshan Transmission Branch|81,061,026.50||1.06||18,447,802.84|0.26||
|Chongqing Jianshe Automobile Air‐conditioner Co., Ltd|71,333,271.84||0.93||49,801,432.27|0.69||
|Chongqing Changan Min Sheng Logistics Co., Ltd|57,984,490.94||0.76||72,760,462.77|1.02||
|Hubei Xiaogan Huazhong Automobile Light Co., Ltd|39,419,147.84||0.51||40,464,945.09|0.56||
|Harbin Dongan Automobile Engine Manufacture Co., Ltd|37,202,140.47||0.48||136,313,412.28|1.89||
|South Inter Air‐conditioner Co., Ltd|25,512,682.93||0.33||22,765,958.34|0.32||
|Chongqing Wanyou Economic Development Co., Ltd|19,331,791.01||0.25||17,004,418.71|0.24||
|Chongqing Shangfang Automobile Parts Co., Ltd|16,654,102.47||0.22||20,743,902.88|0.29||
|Changan Ford Automobile Co., Ltd|14,814,080.88||0.19||15,325,291.06|0.21||
|Chengdu Wanyou Filter Co., Ltd|14,495,391.54||0.19||11,680,132.47|0.16||
|Chengdu Lingchuan Special Industry Co., Ltd|13,751,316.61||0.18||21,569,256.54|0.30||
|Chengdu Lingchuan Vehicle Oil Tank Co., Ltd|12,522,328.50||0.16||10,802,258.00|0.15||
|Longchang Shanchuan Shock‐absorbing Works Industries Co., Ltd|10,314,211.50||0.13||20,163,372.52|0.28||
|Chongqing Changrong Machine Co., Ltd|8,945,469.86||0.12||12,053,763.58|0.17||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||2013|||2012|||
||Amount|Amount||Proportion of accounts|Amount||Proportion of accounts|
|||||payable (%)|||payable (%)|
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd|8,645,584.79||0.11||4,952,442.79|0.07||
|Harbin Dongan Auto Engine Co., Ltd|7,888,883.89||0.10||17,484,703.93|0.24||
|Yunnan Xiyi Industries Co., Ltd|6,307,781.87||0.08||5,546,058.68|0.08||
|Chongqing Changan Visteon Engine Control Systems Co., Ltd|4,415,046.05||0.06||7,311,121.96|0.10||
|China Changan Automobile Co., Ltd – Chengdu Jian'an AutomobileBridge Branch|4,225,567.85||0.06||‐|‐||
|Chongqing Changfeng Jiquan Machinery Co., Ltd|4,034,553.99||0.05||4,142,674.18|0.06||
|Chongqing Qingshan Transmission Sales Co., Ltd|3,510,369.53||0.05||4,654,778.54|0.06||
|Chongqing Xiyi Automobile Linkage Rod Co., Ltd|3,094,672.85||0.04||5,392,451.59|0.07||
|Chengdu Ningxing Automobile Spring Co., Ltd|2,625,476.67||0.03||1,838,710.24|0.03||
|Chengdu Huachuan Electric Equipment Co., Ltd|2,063,833.08||0.03||25,308,680.22|0.35||
|Changan Industries Group Co. Ltd|1,470,171.48||0.02||1,782,289.62|0.02||
|Chongqing Dajiang Xinda Vehicles Shares Co., Ltd|748,874.25||0.01||4,590,162.30|0.06||
|Sichuan Hongguang Machinery and Electrics Co., Ltd|587,194.88||0.01||10,248,221.07|0.14||
|Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd|460,309.02||0.01||230,810.22|0.00||
|Chongqing Yihong Engineering Plastic Products Co., Ltd|388,320.89||0.01||990,540.33|0.01||
|Chongqing Automobile Air‐conditioner Co., Ltd|205,041.51||0.00||205,041.51|0.00||
|Beijing Beiji Mechanical and Electrical Industry Co., Ltd|187,931.10||0.00||111,132.50|0.00||
|Chongqing Dajiang Yuqiang Plastic Co., Ltd|86,896.33||0.00||293,172.96|0.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related party|||2013|||2012|||
|||Amount|Amount||Proportion of accounts|Amount||Proportion of accounts|
||||||payable (%)|||payable (%)|
|Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd||78,777.22||0.00||229,162.79|0.00||
|Chongqing Changan Kuayue Automobile Co., Ltd||77,208.01||0.00||77,208.01|0.00||
|Yunnan Wanyou Auto Sales and Service Co., Ltd||1,588.50||0.00||‐|‐||
||Total|871,094,100.75||11.35||929,542,023.30|12.91||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Advances from customers
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related party|||2013||||2012|||
|||Amount|Amount||Proportion of advances|Amount|Amount||Proportion of advances|
||||||from customers (%)||||from customers (%)|
|Wanyou Automobile Investment Co., Ltd||66,697,598.00||1.57||‐||‐||
|Guizhou Wanyou Auto Sales and Service Co., Ltd||37,904,652.54||0.89||24,183,609.06||0.57||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd||33,777,648.07||0.79||35,500,225.54||0.84||
|Yunnan Wanyou Auto Sales and Service Co., Ltd||26,371,376.55||0.62||7,881,469.40||0.19||
|Chongqin Wanyou Economic Technological Development Co., Ltd||22,423,321.66||0.53||55,459,817.10||1.30||
|Chengdu Wanyou Economic Technological Development Co., Ltd||16,744,132.43||0.39||46,527,059.64||1.09||
|Guangxi Wanyou Auto Sales and Service Co., Ltd||7,808,775.67||0.18||5,567,939.76||0.13||
|Nanning Wanyou Auto Sales and Service Co., Ltd||3,942,335.87||0.09||1,153,450.87||0.03||
|China Changan Automobile Group Tianjin Sales Co., Ltd||3,352,511.00||0.08||4,518,058.00||0.11||
|Chongqing Changan Min Sheng Logistics Co., Ltd||346,716.96||0.01||345,450.10||0.01||
|Jiangling Holding Co., Ltd||499,717.24||0.01||‐||‐||
|China Changan Automobile Group Chongqing Guangda Sales Co., Ltd||21,843.52||0.00||459,214.05||0.01||
|Southwest Ordnance Industry Corporation||‐||‐||131,909,063.75||3.10||
|Changan Ford Mazda Engine Co., Ltd||‐||‐||1,791,202.38||0.04||
|Changan Mazda Automobile Co., Ltd||‐||‐||76,663.28||0.00||
||Total|219,890,629.51||5.16||315,373,222.93||7.42||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Other payables
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related party||2013||||2012|||
||Amount|Amount||Proportion of other|Amount|Amount||Proportion of other|
|||||payables (%)||||payables (%)|
|Chongqing Changan Min Sheng Logistics Co., Ltd|227,771,641.76||13.96||228,316,728.17||11.89||
|Chongqing Changan Construction Co., Ltd|23,320,991.30||1.43||73,671,074.05||3.84||
|Changan Industries Group Co. Ltd|6,228,519.04||0.38||1,871,136.20||0.10||
|Hafei Motor Co., Ltd|4,811,080.37||0.29||2,404,233.00||0.13||
|Chongqing Changan Property Management Ltd.|1,345,904.19||0.08||1,829,133.79||0.10||
|Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd|1,331,884.26||0.08||‐||‐||
|Yunnan Wanyou Auto Sales and Service Co., Ltd|821,010.31||0.05||1,270.40||0.00||
|Chongqing Wanyou Construction Co., Ltd|242,726.00||0.01||‐||‐||
|Chengdu Wanyou Economic Technological Development Co., Ltd|125,509.91||0.01||245,808.15||0.01||
|Chengdu Wanyou Filter Co., Ltd|120,000.00||0.01||120,000.00||0.01||
|Chongqing Changan Real Estate Development Co., Ltd|74,374.90||0.01||189,027.00||0.01||
|Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd|72,770.27||0.01||‐||‐||
|Chongqing Wanyou Economic Development Co., Ltd|67,233.45||0.01||‐||‐||
|Suining Wanyou Auto Sales and Service Co., Ltd|32,968.00||0.00||‐||‐||
|Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd|18,301.40||0.00||‐||‐||
|Chengdu Wanyou Trading Co., Ltd|13,825.70||0.00||‐||‐||
|Chongqing HelpGo Information Technology Co., Ltd|‐||‐||17,171,978.77||0.90||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related party|||2013||||2012|||
|||Amount|Amount||Proportion of other|Amount|Amount||Proportion of other|
||||||payables (%)||||payables (%)|
|CSIA‐Chongqing Tsingshan Transmission Branch||‐||‐||831,379.12||0.04||
|Chongqing Shangfang Automobile Fittings Co., Ltd||‐||‐||51,618.40||0.00||
|Chongqing Wanyou Auto Sales and Service Corporation||‐||‐||4,982.00||0.00||
|Sichuan Ningjiang Shanchuan Machinery Co, Ltd||‐||‐||3,164.00||0.00||
||Total|266,398,740.86||16.33||326,711,533.05||17.03||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
6. Cash deposited in related parties
||||||||||
|-|-|-|-|-|-|-|-|-|
||||2013|||2012|||
||Related party||Amount||Proportion of cash (%)|Amount||Proportion of cash (%)|
|China South Industry Group Finance Co., Ltd||790,735,700.08||18.47||574,179,392.34|13.67||

 Deposits earn interest at the respective bank deposit rates.
7. Loans from related parties
Short‐term loans
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||2013|||2012|||
||Amount|Amount||Proportion of short‐termloans (%)|Amount||Proportion of|
||||||||short‐term loans (%)|
|China South Industry Group Finance Co., Ltd|1,000,000,000.00||79.49||500,000,000.00|40.00||

Non‐current liabilities within one year
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||2013|||2012|||
||Amount|Amount||Proportion ofNon‐current liabilitieswithin one year (%)|Amount||Proportion of|
||||||||Non‐current liabilities|
||||||||within one year (%)|
|China South Industry Group Finance Co., Ltd|20,000,000.00||3.85||18,000,000.00|100.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Long‐term loans
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||2013|||2012|||
||Amount|Amount||Proportion of long‐term|Amount||Proportion of long‐term|
|||||loans (%)|||loans (%)|
|China South Industry Group Finance Co., Ltd|470,000,000.00||37.01||592,000,000.00|59.68||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
VII. Contingencies
As at 31 December 2013, no material contingencies needed to be disclosed.
VIII. Commitments
1. Capital commitments
||||
|-|-|-|
|Item|2013|2012|
|Contracted, but not provided for|5,380,877,554.25|4,800,036,171.67|
|Approved by board, but not contracted|4,577,892,512.00|3,166,487,769.21|
|Total|9,958,770,066.25|7,966,523,940.88|

 2. Investment commitments
||||
|-|-|-|
|Item|2013|2012|
|Contracted, but not completed|‐|1,304,408,890.00|

 IX. Financial instruments and their risks
TheGroup’s principal financial instruments comprise 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 Group enters into derivative transactions in forms oflong‐term exchange contract to avoid risks arising from operation.
The main risks arising from theGroup’s financial instruments are credit risk, liquidity risk and market risk.
1. Classification of financial instruments
The book values of different classes of financial instruments are as follows:
2013
|||||||
|-|-|-|-|-|-|
|Financial assets||Financial assets|Loans and accountsreceivable|Available‐for‐salefinancial assets|Total|
|||at fair value||||
|||through profit or||||
|||loss||||
|Cash|‐||4,281,715,600.23|‐|4,281,715,600.23|
|Notes receivable|‐||11,272,212,347.84|‐|11,272,212,347.84|
|Accounts receivable|‐||380,017,320.86|‐|380,017,320.86|
|Other receivables|‐||208,009,273.35|‐|208,009,273.35|
|Financial assets held|‐||‐|257,319,416.00|257,319,416.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
|for trading||||||
||Total|‐|16,141,954,542.28|257,319,416.00|16,399,273,958.28|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||
|-|-|-|-|-|-|
|Financial liabilities|||Financial liabilities at|Other financialliabilities|Total|
||||fair value through profit|||
||||or loss|||
|Short‐term loans||‐||1,258,000,000.00|1,258,000,000.00|
|Notes payable||‐||9,388,781,959.80|9,388,781,959.80|
|Accounts payable||‐||7,671,845,704.87|7,671,845,704.87|
|Interest payable||‐||78,113,712.49|78,113,712.49|
|Dividend payable||‐||79,742.80|79,742.80|
|Other payables||‐||1,631,578,755.92|1,631,578,755.92|
|Non‐current liabilities within one year||‐||520,000,000.00|520,000,000.00|
|Long‐term loans||‐||1,270,000,000.00|1,270,000,000.00|
|Bonds payable||‐||1,967,266,759.93|1,967,266,759.93|
||Total|‐||23,785,666,635.81|23,785,666,635.81|

 2012
||||||||
|-|-|-|-|-|-|-|
|Financial assets|||Financial assets|Loans and accountsreceivable|Available‐for‐salefinancial assets|Total|
||||at fair value||||
||||through profit or||||
||||loss||||
|Cash||‐||4,199,763,915.82|‐|4,199,763,915.82|
|Notes receivable||‐||9,364,340,972.00|‐|9,364,340,972.00|
|Accounts receivable||‐||438,384,320.58|‐|438,384,320.58|
|Other receivables||‐||133,863,189.40|‐|133,863,189.40|
|Dividend receivable||‐||450,030.00|‐|450,030.00|
|Available‐for‐salefinancial assets||‐||‐|233,814,100.00|233,814,100.00|
|Financial assets heldfor trading||332,407.00||‐|‐|332,407.00|
||Total|332,407.00||14,136,802,427.80|233,814,100.00|14,370,948,934.80|

|||||||
|-|-|-|-|-|-|
|Financial liabilities|||Financial liabilities at|Other financialliabilities|Total|
||||fair value through profit|||
||||or loss|||
|Short‐term loans||‐||1,250,000,000.00|1,250,000,000.00|
|Notes payable||‐||7,808,998,092.99|7,808,998,092.99|
|Accounts payable||‐||7,201,763,448.59|7,201,763,448.59|
|Interest payable||‐||77,316,091.67|77,316,091.67|
|Dividend payable||‐||79,742.80|79,742.80|
|Other payables||‐||1,918,249,420.49|1,918,249,420.49|
|Non‐current liabilities within one year||‐||18,000,000.00|18,000,000.00|
|Long‐term loans||‐||992,000,000.00|992,000,000.00|
|Bonds payable||‐||1,963,348,839.97|1,963,348,839.97|
||Total|‐||21,229,755,636.51|21,229,755,636.51|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2. Credit risk
Credit risk is the risk of loss on one party of a financial instrument, due to the failure of another party to meet its obligations.
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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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 2013, 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 2013, among theGroup’s collections with specific credit risk,39.34% (2012:39.92%) of accounts receivables of the Group are due from top five clients respectively.
Refer to Note V 4 and 7 for quantitative date arising from credit risk exposure due to accounts receivables and other receivables of the Group.
As at 31 December 2013, the maturity analysis for theGroup’s financial assets not impaired is as follows:
2013
|||||||||
|-|-|-|-|-|-|-|-|
||Total|Neither overdue norimpaired||Overdue but not impaired||||
||||Within 3 months|||3 months to 1|Over 1 year|
|||||||year||
|Accountsreceivable|380,017,320.86|335,143,161.56|28,469,557.32||2,910,920.33||13,493,681.65|
|Otherreceivables|208,009,273.35|205,987,423.21|381,336.00||51,870.00||1,588,644.14|
|Notesreceivable|11,272,212,347.84|11,272,212,347.84|‐||‐||‐|

2012
|||||||||
|-|-|-|-|-|-|-|-|
||Total|Neither overdue norimpaired||Overdue but not impaired||||
||||Within 3 months|||3 months to 1|Over 1 year|
|||||||year||
|Accountsreceivable|438,384,320.58|396,996,309.93|4,835,794.18||12,769,686.73||23,782,529.74|
|Otherreceivables|133,863,189.40|131,964,449.05|1,070,770.83||163,666.10||664,303.42|
|Notesreceivable|9,364,340,972.00|9,364,340,972.00|‐||‐||‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
3. Liquidity risk
Liquidity risk is the potential that an enterprise may encounter deficiency of funds in meeting obligations associated with financial liablties.
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 thenon‐discounted cash flow of the contracts:
2013
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Financial assets||Within 1 month||1 to 3 months||3 months to 1 year||1 to 5 years||Total|
|Cash||3,922,317,435.10||243,401,822.04||115,996,343.09||‐||4,281,715,600.23||
|Notes receivable||2,702,574,582.00||4,972,066,671.77||3,597,571,094.07||‐||11,272,212,347.84||
|Accountsreceivable||329,946,692.71||32,558,920.00||74,109,845.15||‐||436,615,457.86||
|Other receivables||92,328,891.39||2,360,235.17||142,766,003.20||‐||237,455,129.76||
|Available‐for‐salefinancial assets||‐||‐||‐||257,319,416.00||257,319,416.00||
||Total|7,047,167,601.20||5,250,387,648.98||3,930,443,285.51||257,319,416.00||16,485,317,951.69||

||||||||
|-|-|-|-|-|-|-|
||Financial|Within 1 month|1 to 3 months|3 months to 1 year|1 to 5 years|Total|
||liabilities||||||
|Short‐term loans||‐|45,001,539.05|1,245,168,646.56|‐|1,290,170,185.61|
|Notes payable||1,746,101,479.37|3,298,501,815.93|4,344,178,664.50|‐|9,388,781,959.80|
|Accounts payable||2,539,258,578.69|3,507,441,227.54|1,625,145,898.64|‐|7,671,845,704.87|
|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||469,463,560.65|497,788,248.55|664,326,946.72|‐|1,631,578,755.92|
|Non‐currentliabilities withinone 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|4,755,218,484.81|7,372,805,470.10|8,569,464,218.06|3,617,680,439.74|24,315,168,612.71|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2012
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Financial assets||Within 1 month||1 to 3 months||3 months to 1 year|1 to 5 years||Total|
|Cash||3,935,486,954.64||35,350,140.09||228,926,821.09||‐|4,199,763,915.82||
|Notes receivable||1,912,193,883.00||4,555,956,632.50||2,896,190,456.50||‐|9,364,340,972.00||
|Accountsreceivable||324,818,416.97||24,501,985.39||149,312,509.80||‐|498,632,912.16||
|Other receivables||164,956,185.43||21.50||‐||3,071,937.80|168,028,144.73||
|Dividendreceivable||450,030.00||‐||‐||‐|450,030.00||
|Available‐for‐salefinancial assets||‐||‐||‐||233,814,100.00|233,814,100.00||
|Financial assetsheld for trading||‐||332,407.00||‐||‐|332,407.00||
||Total|6,337,905,470.04||4,616,141,186.48||3,274,429,787.39||236,886,037.80|14,465,362,481.71||

||||||||
|-|-|-|-|-|-|-|
||Financial|Within 1 month|1 to 3 months|3 months to 1 year|1 to 5 years|Total|
||liabilities||||||
|Short‐term loans||30,000,000.00|42,260,617.03|1,224,119,316.44|‐|1,296,379,933.47|
|Notes payable||1,655,330,069.40|2,394,241,745.76|3,759,426,277.83|‐|7,808,998,092.99|
|Accounts payable||4,964,623,096.93|945,542,530.65|1,291,597,821.01|‐|7,201,763,448.59|
|Interest payable||416,996.38|3,441,095.29|73,458,000.00|‐|77,316,091.67|
|Dividend payable||79,742.80|‐|‐|‐|79,742.80|
|Other payable||624,091,656.68|680,840,770.40|594,858,665.26|18,458,328.15|1,918,249,420.49|
|Non‐currentliabilities withinone year||‐|272,958.90|18,694,528.77|‐|18,967,487.67|
|Long‐term loans||‐|13,673,342.47|113,306,808.22|1,069,113,878.08|1,196,094,028.77|
|Bonds payable||‐|‐|31,482,000.00|2,399,760,000.00|2,431,242,000.00|
||Total|7,274,541,562.19|4,080,273,060.50|7,106,943,417.53|3,487,332,206.23|21,949,090,246.45|

 4. Market risk
Market risk is the risk that the fair values or future cash flows of financial instruments will fluctuate due to changes in market prices. Market risks mainly include interest raterisk，equity price risk and foreign currency risk.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to floating market interest rate. TheGroup’s exposure to the risk of changes in market interest rate relates primarily to theGroup’slong‐term loans with floating interest rate. The Group monitors the mix of fixed and floating interest rate borrowings to manage its interest rate risk.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other
variables constant, of theGroup’s net profit (through the impact on floating rate borrowing) and theGroup’s
equity:
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||
|-|-|-|-|-|
|||Increase/(decrease) in|Increase/(decrease) in net profit|Increase/(decrease) in equity|
|||basis point|||
|2013|||||
|Long‐term loans with floatinginterest rate|50||(6,350,000.00)|(6,350,000.00)|
|Long‐term loans with floatinginterest rate|(50)||6,350,000.00|6,350,000.00|
|||Increase/(decrease) in|Increase/(decrease) in net profit|Increase/(decrease) in equity|
|||basis point|||
|2012|||||
|Long‐term loans with floatinginterest rate|50||(4,960,000.00)|(4,960,000.00)|
|Long‐term loans with floatinginterest rate|(50)||4,960,000.00|4,960,000.00|

Equity price risk
Equity price risk is the risk that the fair values of equity securities decrease as a result of changes in the level of equity indices and the value of individual securities. The Group is exposed to equity price risk arising from individual equity investments classified asavailable‐for‐sale investments (NoteⅤ 10) as at 31 December 2013. 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 market equity indices for the following stock exchanges, at the close of business of the nearest trading day in the year to the end of the reporting period, and their respective highest and lowest points during the year were as follows:
31 December High/Low 31 December High/Low 2013 2013 2012 2012Shanghai‐ A Share Index 2,214 2,548/2,041 2,376 2,578/2,052 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. For the purpose of this analysis, for theavailable‐for‐sale equity investments, the impact is deemed to be on theavailable‐for‐sale investment revaluation reserve and no account is given for factors such as impairment which might impact the income statement.
|||||||
|-|-|-|-|-|-|
|||Carrying amount ofequity investments|Change in fairvalue|Increase/(decrease) in netprofit|Increase/(decrease) in equity|
||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)|
||2012|||||
|Shanghai‐ Available for sale||233,814,100.00|5%|‐|9,560,566.25|
|Shanghai‐ Available for sale||233,814,100.00|(5%)|‐|(9,560,566.25)|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Foreign currency risk
Foreign currency risk is the risk that the fair values and future cash flows of financial instruments will fluctuate due to changes in foreign exchange rates. 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. The Group has transactional currency exposures of1.37% (2012:0.95%) of theGroup’s total revenue that is valued in currencies other than the units' functional currency.
The following table demonstrates the sensitivity at the balance sheet date to a reasonably possible change in the United States dollar and Euro exchange rate, with all other variables held constant, of the company's profit before tax (due to changes in the fair value of monetary assets and forward foreign exchange contract):
||||||||
|-|-|-|-|-|-|-|
|||Exchange rate||Increase / (decrease) in PBT|||
|||Increase/||due to changes in fair value||due to forward foreign|
|||(Decrease)||of monetary assets||exchange contract|
|2013|||||||
|If RMB weakens against US dollar|(5%)||3,786,347.18||‐||
|If RMB strengthens against US dollar|5%||(3,786,347.18)||‐||
|If RMB weakens against Euro|(5%)||624,679.00||‐||
|If RMB strengthens against Euro|5%||(624,679.00)||‐||
|If RMB weakens against Pounds|(5%)||42,300.00||‐||
|If RMB strengthens against Pounds|5%||(42,300.00)||‐||
|2012|||||||
|If RMB weakens against US dollar|(5%)||2,701,471.69||(1,277,150.00)||
|If RMB strengthens against US dollar|5%||(2,701,471.69)||1,277,150.00||
|If RMB weakens against Euro|(5%)||315,079.00||‐||
|If RMB strengthens against Euro|5%||(315,079.00)||‐||

5. Fair value
Fair value is defined as 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. Fair value is estimated by hypothesizes and methods listed as below.
In the Group, cash and cash equivalents, notes receivable, accounts receivable, dividends receivable, other receivables, accounts payable,short‐term loans, other payables,long‐term loans and bonds payable represent the fair value of these assets and liabilities equivalent to the book value.
The Group entered into derivative financial contract with financial institution with high credit rating. The derivative financial instrument, as forward currency contracts uses forward pricing method to set the booking value, which equivalent to the fair value.
The fair value of listed financial instruments was set by the price in the market.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
X. 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
The Company signed the equity transfer agreement with China Changan Automobile Group Co., Ltd on 8th March 2014 in Chongqing, which the Company acquires100% equity of Hefei Changan Automobile Co., Ltd held by China Changan Automobile Group Co., Ltd with total amount of RMB439,980,000.00. As at 25th March 2014, all payment has been settled by the Company, along with processing of related equity transfer. Upon the completion the above acquisition, the Company holds100% equity of Hefei Changan Automobile Co., Ltd. As of the approval date of financial statement, no significant event was noted except the above.
XI. Other important event
1. Leasing arrangements
According to the lease contracts signed with the lessor, the minimum leases payments undernon‐cancellable leases are as follows:
|||||
|-|-|-|-|
|Item||2013|2012|
|Less than 1 year (including 1 year)|27,278,638.26||7,729,234.19|
|1 to 2 years (including 2 years)|1,176,173.92||2,019,678.92|
|2 to 3 years (including 3 years)|628,998.92||740,228.92|
|Over 3 years|314,499.46||943,498.38|
|Total|29,398,310.56||11,432,640.41|

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
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
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.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
XII. 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:
2013 2012 Within 1 year 1,320,170,130.72 933,014,386.68 1 to 2 years 43,706,677.51 109,881,631.88 2 to 3 years 11,103,089.64 18,655,444.66 Over 3 years 58,497,580.08 47,302,563.38 1,433,477,477.95 1,108,854,026.60 Provision (39,547,040.38) (37,508,407.16) 1,393,930,437.57 1,071,345,619.44 The movements in provision for impairment of accounts receivable are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||Beginning Balance|Addition||Deduction|||Ending Balance|
|||||Reversal||Write‐off||
|2013|37,508,407.16|2,038,633.22|‐||‐||39,547,040.38|
|2012|38,173,999.96|‐|665,592.80||‐||37,508,407.16|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) An analysis of the accounts receivable by category as at the end of the reporting period is as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2013||||||||2012|||||||
||||Balance||||Provision||||Balance||||Provision|||
|||Amount|||%||Amount||%||Amount||%||Amount||%|
|Individually significant items andanalyzed individually for provision||40,432,696.53||2.82||‐||‐||57,465,112.99||5.18||‐||||
|Accounts receivable analyzed as groups for provision||||||||||||||||||
|Group 1. Accounts receivableanalyzed for provision accordingto aging analysis||59,555,988.83||4.16||39,547,040.38||66.40||72,506,929.40||6.54||37,508,407.16||51.73||
|Group 2. Accounts receivable fromrelated parties||1,333,488,792.59||93.02||‐||‐||978,881,984.21||88.28||‐||‐||
|Group subtotal||1,393,044,781.42||97.18||39,547,040.38||2.84||1,051,388,913.61||94.82||37,508,407.16||3.57||
|individually insignificant items butanalyzed individually for provision||‐||‐||‐||‐||‐||‐||‐||‐||
||Total|1,433,477,477.95||100.00||39,547,040.38||||1,108,854,026.60||100.00||37,508,407.16||||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
Within groups, accounts receivable analyzed for provision according to aging analysis:
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||2013|||||2012||||
||||Balance|||Provision|Balance||||Provision|
|||Amount|||Percentage||Amount|||Percentage||
||||||(%)|||||(%)||
|Within 6months||11,723,964.33||19.69||‐|24,107,208.27||33.25||‐|
|6 to 12months||234,146.46||0.39||11,707.32|255,480.06||0.35||12,774.00|
|Within 1yearsubtotal||11,958,110.79||20.08||11,707.32|24,362,688.33||33.60||12,774.00|
|1 to 2years||2,078,683.07||3.49||207,868.31|1,601,166.67||2.21||160,116.67|
|2 to 3years||878,111.50||1.47||263,433.45|13,056,095.28||18.01||3,916,828.58|
|3 to 4years||11,154,104.35||18.73||5,577,052.18|‐||‐||‐|
|4 to 5years||‐||‐||‐|341,456.08||0.47||273,164.87|
|Over 5years||33,486,979.12||56.23||33,486,979.12|33,145,523.04||45.71||33,145,523.04|
||Total|59,555,988.83||100.00||39,547,040.38|72,506,929.40||100.00||37,508,407.16|

 Within groups, accounts receivable analyzed for provision with other methods:
|||||||
|-|-|-|-|-|-|
||Group||Balance||Provision|
|Accounts receivable from related parities||1,333,488,792.59||‐||
||Total|1,333,488,792.59||‐||

 As at 31 December 2013, there was no individually insignificant items but analyzed individually for provision (2012: nil).
(3) For the year ended 2013, no provision for impairment of accounts receivable has been reversed. (2012: 665,592.80).
(4) For the year ended 2013, there is nowrite‐off of provision for bad debts (2012: nil).
(5) As at 31 December 2013, there is no amount due from shareholders that hold5% or more of theCompany’s voting shares (As at 31 December 2012: nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(6) As at 31 December 2013, top five debtors of accounts receivable are as follows:
||||||||
|-|-|-|-|-|-|-|
|Debtors||Relationship with the Company|Amount|Aging||Proportion of|
|||||||total accounts|
|||||||receivable (%)|
|First||Subsidiary|578,999,672.98|Within 1 year|40.39||
|Second||Subsidiary|194,303,648.19|Within 1 year|13.55||
|Third||Subsidiary|178,473,915.44|Within 1 year|12.45||
|Fourth||Subsidiary|148,080,822.41|Within 1 year|10.33||
|Fifth||Joint venture|67,203,793.50|Within 1 year|4.69||
||Total||1,167,061,852.52||81.41||

 (7) As at 31 December 2013, accounts receivable due from related parties is asfollows：
||||||
|-|-|-|-|-|
|Debtors|Relationship with the Group|Amount||Proportion of|
|||||total accounts|
|||||receivable (%)|
|Nanjing Changan Automobile Co., Ltd|Subsidiary|578,999,672.98|40.39||
|Hebei Changan Automobile Co., Ltd|Subsidiary|194,303,648.19|13.55||
|Chongqing Changan International Automobile Sales Co.,Ltd|Subsidiary|178,473,915.44|12.45||
|Hebei Baoding Changan Bus Co., Ltd.|Subsidiary|148,080,822.41|10.33||
|Changan Ford Automobile Co., Ltd|Joint venture|67,203,793.50|4.69||
|Heilongjiang Changan Automobile Sales Co., Ltd.|Subsidiary|48,323,623.30|3.37||
|Harbin Dongan Automotive Engine Manufacturing Co.,Ltd.|Controlled by the sameparent company|28,083,882.87|1.96||
|Changan Mazda Automobile Co., Ltd|Joint venture|22,058,248.72|1.54||
|Changan Ford Mazda Engine Co., Ltd|Joint venture|13,994,402.88|0.98||
|Jiangxi Changhe Automobile Co., Ltd.|Historical related party|10,322,428.89|0.72||
|Xinjiang Changan Automobile Sales Co., Ltd.|Subsidiary|9,565,109.00|0.67||
|Chongqing Changan Kuayue Automobile Co., Ltd|Joint venture|7,997,692.00|0.56||
|Liaoning Changan Automobile Sales Co., Ltd.|Subsidiary|7,372,369.23|0.51||
|Jiangling Holding Co., Ltd|Joint venture|6,187,757.28|0.43||
|Chongqing Anfu Automobile sales Co., Ltd|Controlled by the sameparent company|3,908,410.00|0.27||
|Chongqing Changan Suzuki Automobile Co., Ltd|Joint venture|3,401,258.46|0.24||
|Yinchuan Changan Automobile Sales Co., Ltd.|Subsidiary|2,056,841.28|0.14||
|China South Industry Group Finance Co., Ltd|Controlled by the sameultimate holding company|1,985,948.00|0.14||
|Changan Automobile Group Co., Ltd. Harbin salessubsiary|Subsidiary|872,732.96|0.06||
|Hafei Automobile Co., Ltd.|Controlled by the sameparent company|259,600.00|0.02||
|Hefei Changan Automobile Co., Ltd (former name: HefeiChanghe Automobile Co., Ltd)|Controlled by the sameparent company|36,279.10|0.00||
|Chongqing Changan Automobile supporting service Co.,Ltd.|Subsidiary|356.10|0.00||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||
|-|-|-|
|Total|1,333,488,792.59|93.02|

 (8) There is no accounts receivable derecognized due to transfer of financial assets during 2013 (2012: nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(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:
2013 2012 Within 1 year 518,767,650.62 238,791,904.86 1 to 2 years 10,388,237.71 76,451,896.18 2 to 3 years 22,118,265.16 1,026,684.00 Over 3 years 2,361,744.00 2,046,901.65 553,635,897.49 318,317,386.69 Provision (2,890,162.19) (2,740,878.98) 550,745,735.30 315,576,507.71 The movements in provision for impairment of other receivables are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
||Beginning Balance|Addition||Deduction|||Ending Balance|
||||Reversal|||Write‐off||
|2013|2,740,878.98|149,283.21|‐||‐||2,890,162.19|
|2012|2,778,183.67|‐|37,304.69||‐||2,740,878.98|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(2) An analysis of the other receivables by category as at the end of reporting period is as follows:
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2013|||||||2012||||||||
||||Balance||||Provision||||Balance||||Provision|||
||||Amount||%||Amount||%||Amount||%||Amount||%|
|Individually significant items and analyzedindividually for provision||123,460,000.00||22.30||‐||‐||56,232,000.00||17.67||‐||‐||
|Other receivables analyzed as groups for provision||||||||||||||||||
|Group 1. Other receivables analyzed forprovision according to aging analysis||43,265,117.90||7.81||2,890,162.19||6.68||39,099,330.28||12.28||2,740,878.98||7.01||
|Group 2. Other receivables from related parties||386,910,779.59||69.89||‐||‐||222,986,056.41||70.05||‐||‐||
|Group subtotal||430,175,897.49||77.70||2,890,162.19||0.67||262,085,386.69||82.33||2,740,878.98||1.05||
||Total|553,635,897.49||100.00||2,890,162.19||||318,317,386.69||100.00||2,740,878.98||‐||

 Within groups, other receivables analyzed for provision according to aging analysis:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Aging||2013|||||2012||||
|||Balance|||Provision||Balance|||Provision|
|||Amount||%|||Amount||%||
|Within 6 months|34,538,599.66||79.83||‐|31,212,755.11||79.83||‐|
|6 to 12 months|4,018,896.42||9.29||200,944.80|1,806,536.51||4.62||90,326.83|
|Within 1 year subtotal|38,557,496.08||89.12||200,944.80|33,019,291.62||84.45||90,326.83|
|1 to 2 years|369,199.81||0.85||36,919.99|3,006,453.01||7.68||300,645.30|
|2 to 3 years|1,976,678.01||4.57||593,003.40|1,026,684.00||2.63||308,005.20|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||
|-|-|-|-|-|-|-|-|
|3 to 4 years||600,900.00|1.39|300,450.00|10,000.00|0.03|5,000.00|
|4 to 5 years||10,000.00|0.02|8,000.00|‐|‐|‐|
|Over 5 years||1,750,844.00|4.05|1,750,844.00|2,036,901.65|5.21|2,036,901.65|
||Total|43,265,117.90|100.00|2,890,162.19|39,099,330.28|100.00|2,740,878.98|

 (3) For the year ended 2013, no provision for impairment of other receivables has been reversed. (2012: RMB37,304.69).
(4) There is nowrite‐off of provision for bad debts during 2013 (2012: nil).
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(5) As at 31 December 2013, there is no amount due from shareholders that hold5% or more of theCompany’s voting shares (As at 31 December 2012: nil).
(6) As at 31 December 2013, top five debtors of other receivables are as follows:
||||||||
|-|-|-|-|-|-|-|
|Debtors||Relationship with theCompany|Amount|Aging||Proportion of|
|||||||total other|
|||||||receivables (%)|
|First||Non‐related|123,460,000.00|Within 1 year|22.30||
|Second||Subsidiary|21,373,332.00|Within 1 year|3.86||
|Third||Subsidiary|19,161,427.05|Within 1 year|3.46||
|Fourth||Subsidiary|13,176,365.28|Within 1 year|2.38||
|Fifth||Subsidiary|11,868,277.14|Within 1 year|2.15||
||Total||189,039,401.47||34.15||

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
3.Long‐term equity investments
2013
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Initial amount|Beginning|Addition/(deduction)|Ending|Shareholdingpercentage(%)|Votingpercentage(%)||Explanation for the|Impairment|Currentprovision|Current cashdividends|
||||||||||difference between||||
||||||||||shareholding||||
||||||||||percentage and||||
||||||||||voting percentage||||
|Joint ventures|||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd|Equity|239,905,266.00|1,421,953,088.21|917,918.98|1,422,871,007.19|51.00|51.00|N/A||‐|‐|‐|
|Jiangling Holding Co., Ltd|Equity|1,000,000,000.00|1,706,722,325.52|263,346,186.29|1,970,068,511.81|50.00|50.00|N/A||‐|‐|‐|
|Changan Ford Automobile Co.,Ltd|Equity|951,589,136.29|2,677,677,911.23|2,491,202,560.31|5,168,880,471.54|50.00|50.00|N/A||‐|‐|1,600,000,000.00|
|Changan Mazda AutomobileCo., Ltd|Equity|1,097,839,635.00|1,115,310,608.80|49,976,658.52|1,165,287,267.32|50.00|50.00|N/A||‐|‐|‐|
|Changan Ford Mazda EngineCo., Ltd|Equity|786,734,634.10|475,236,298.82|124,232,371.10|599,468,669.92|50.00|50.00|N/A||‐|‐|‐|
|Changan PSAAutomobiles Co., Ltd|Equity|2,007,841,700.00|‐|1,957,257,672.14|1,957,257,672.14|50.00|50.00|N/A||‐|‐|‐|
|Associates|||||||||||||
|Chongqing HelpGoInformation Technology Co.,Ltd|Equity|4,500,000.00|10,316,211.80|(10,316,211.80)|‐|0.00|0.00|N/A||‐|‐|‐|
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd|Equity|6,714,720.64|8,415,002.53|357,036.55|8,772,039.08|40.00|40.00|N/A||‐|‐|‐|
|Chongqing Changan KuayueAutomobile Co., Ltd|Equity|61,800,885.00|63,870,734.11|197,511.89|64,068,246.00|34.30|34.30|N/A||‐|‐|‐|
|Chongqing Changan KuayueAutomobile Sales Co., Ltd|Equity|1.00|‐|‐|‐|34.30|34.30|N/A||‐|‐|‐|
|Beijing Fang’an taxi Co., Ltd|Equity|6,000,000.00|6,000,000.00|(5,001,370.36)|998,629.64|42.25|42.25|N/A||‐|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Initial amount|Beginning|Addition/(deduction)|Ending|Shareholdinpercentage (%|Votingpercentage(%)||Explanation for the|Impairment|Currentprovision|Current cashdividends|
||||||||||difference between||||
||||||||||shareholding||||
||||||||||percentage and||||
||||||||||voting percentage||||
|Subsidiaries|||||||||||||
|Nanjing ChanganAutomobile Co., Ltd|Cost|413,805,259.00|413,805,259.00|8,728,000.00|422,533,259.00|84.73|93.79|Commissioned byminorities toexercise votingrights||‐|‐|‐|
|Hebei Changan AutomobileCo., Ltd|Cost|437,635,236.00|437,635,236.00|300,000.00|437,935,236.00|94.15|95.70|Commissioned byminorities toexercise votingrights||‐|‐|‐|
|Chongqing ChanganInternational AutomobileSales Co., Ltd|Cost|13,068,580.00|13,068,580.00|‐|13,068,580.00|95.00|95.00|N/A||‐|‐|‐|
|Chongqing ChanganAutomobile supportingservice Co., Ltd.|Cost|29,700,000.00|29,700,000.00|‐|29,700,000.00|99.00|99.00|N/A||‐|‐|‐|
|Chongqing ChanganAutomobile Sales Co., Ltd|Cost|48,500,000.00|48,500,000.00|‐|48,500,000.00|100.00|100.00|N/A||‐|‐|‐|
|Chongqing ChanganAutomobile salessubsidiaries|Cost|8,050,000.00|8,050,000.00|‐|8,050,000.00|90‐100.00|90‐100.00|N/A||‐|‐|‐|
|Chongqing Changan SpecialAutomobile sales Co., Ltd|Cost|2,500,000.00|2,500,000.00|‐|2,500,000.00|50.00|50.00|N/A||‐|‐|‐|
|Chongqing Changan EuropeDesign Academy Co.,Ltd|Cost|134,879,700.00|134,879,700.00|‐|134,879,700.00|100.00|100.00|N/A||‐|‐|‐|
|Chongqing Changan newEngergy Automobile Co.Ltd|Cost|18,850,000.00|18,850,000.00|‐|18,850,000.00|65.00|65.00|N/A||‐|‐|‐|
|Changan United KingdomR&D Center Co., Ltd.|Cost|981,934.40|981,934.40|‐|981,934.40|100.00|100.00|N/A||‐|‐|‐|
|Beijing Changan R&D CenterCo., Ltd.|Cost|1,000,000.00|1,000,000.00|‐|1,000,000.00|100.00|100.00|N/A||‐|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Accountingmethod|Initial amount|Beginning|Addition/(deduction)|Ending|Shareholdinpercentag(%|gVotingpercentage (%||Explanation for|Impairment|Currentprovision|Current cash dividends|
|||||||||||the difference||||
|||||||||||between||||
|||||||||||shareholding||||
|||||||||||percentage and||||
|||||||||||voting percentage||||
|Harbin Changan R&D CenterCo., Ltd.||Cost|1,000,000.00|1,000,000.00|‐|1,000,000.00|100.00|100.00|N/A||‐|‐|‐|
|Jiangxi Changan R&D CenterCo., Ltd.||Cost|2,000,000.00|2,000,000.00|‐|2,000,000.00|100.00|100.00|N/A||‐|‐|‐|
|Shanghai Changan R&DCenter Co., Ltd.||Cost|1,000,000.00|1,000,000.00|‐|1,000,000.00|100.00|100.00|N/A||‐|‐|‐|
|Changan Japan DesigningCenter Co., Ltd.||Cost|1,396,370.15|1,396,370.15|‐|1,396,370.15|100.00|100.00|N/A||‐|‐|‐|
|Changan United States R&DCenter Co., Ltd.||Cost|1,317,720.00|1,317,720.00|‐|1,317,720.00|100.00|100.00|N/A||‐|‐|‐|
|Hebei Baoding Changan BusCo., Ltd.||Cost|176,002,613.18|176,002,613.18|‐|176,002,613.18|100.00|100.00|N/A||‐|‐|‐|
|Others||||||||||||||
|China South Industry GroupFinance Co., Ltd||Cost|80,000,000.00|80,000,000.00|‐|80,000,000.00|5.33|5.33|N/A||‐||23,413,203.42|
|Chongqing Ante Import andExport Co., Ltd||Cost|3,000,000.00|3,000,000.00|‐|3,000,000.00|10.00|10.00|N/A||‐|‐|3,600,000.00|
|Sichuan Glass Co., Ltd||Cost|1,809,274.00|1,809,274.00|‐|1,809,274.00|0.64|0.64|N/A||‐|‐|‐|
|Zhong Fa Lian Investment Co.,Ltd||Cost|21,000,000.00|21,000,000.00|‐|21,000,000.00|10.00|10.00|N/A||‐|‐|‐|
|CAERI(Beijing) automotiveLightweight TechnologyResearch Institution Co., Ltd||Cost|3,000,000.00|3,000,000.00|‐|3,000,000.00|6.89|6.89|N/A||‐|‐|‐|
||Total|－|7,563,422,664.76|8,885,998,867.75|4,881,198,333.62|13,767,197,201.37|‐‐|‐‐|‐‐||‐|‐|1,627,013,203.42|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
2012
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Initial amount|Beginning|Addition/(deduction)|Ending|Shareholdingpercentage(%)|Votingpercentage (%)||Explanation for|Impairment|Currentprovision|Current cashdividends|
||||||||||the difference||||
||||||||||between||||
||||||||||shareholding||||
||||||||||percentage and||||
||||||||||voting||||
||||||||||percentage||||
|Joint ventures|||||||||||||
|Chongqing Changan SuzukiAutomobile Co., Ltd|Equity|239,905,266.00|1,372,612,641.40|49,340,446.81|1,421,953,088.21|51.00|51.00|N/A||‐|‐|‐|
|Jiangling Holding Co., Ltd|Equity|1,000,000,000.00|1,492,969,790.10|213,752,535.42|1,706,722,325.52|50.00|50.00|N/A||‐|‐|‐|
|Changan Ford AutomobileCo., Ltd|Equity|951,589,136.29|4,011,538,873.50|(1,333,860,962.27)|2,677,677,911.23|50.00|50.00|N/A||‐|‐|1,800,000,000.00|
|Changan Ford Mazda EngineCo., Ltd|Equity|786,734,634.10|343,195,182.39|132,041,116.43|475,236,298.82|50.00|50.00|N/A||‐|‐|‐|
|Changan Mazda AutomobileCo., Ltd|Equity|1,097,839,635.00|‐|1,115,310,608.80|1,115,310,608.80|50.00|50.00|N/A||‐|‐|‐|
|Associates|||||||||||||
|Chongqing HelpGoInformation Technology Co.,Ltd|Equity|4,500,000.00|11,776,292.44|(1,460,080.64)|10,316,211.80|21.43|21.43|N/A||‐|‐|‐|
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd|Equity|6,714,720.64|7,664,634.71|750,367.82|8,415,002.53|40.00|40.00|N/A||‐|‐|‐|
|Chongqing Changan KuayueAutomobile Co., Ltd|Equity|61,800,885.00|61,800,885.00|2,069,849.11|63,870,734.11|34.30|34.30|N/A||‐|‐|‐|
|Chongqing Changan KuayueAutomobile Sales Co., Ltd|Equity|1.00|1.00|(1.00)|‐|34.30|34.30|N/A||‐|‐|‐|
|Beijing Fang’an taxi Co., Ltd|Equity|6,000,000.00|‐|6,000,000.00|6,000,000.00|42.25|42.25|N/A||‐|‐|‐|
|Subsidiaries|||||||||||||
|Nanjing ChanganAutomobile Co., Ltd|Cost|413,805,259.00|413,805,259.00|‐|413,805,259.00|82.47|91.53|Commissioned byminorities toexercise votingrights||‐|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Initial amount|Beginning|Addition/(deduction)|Ending|Shareholdingpercentage(%)|Votingpercentage (%)||Explanation for|Impairment|Currentprovision|Current cashdividends|
||||||||||the difference||||
||||||||||between||||
||||||||||shareholding||||
||||||||||percentage and||||
||||||||||voting||||
||||||||||percentage||||
|Hebei Changan AutomobileCo., Ltd|Cost|437,635,236.00|437,635,236.00|‐|437,635,236.00|94.07|95.62|Commissioned byminorities toexercise votingrights||‐|‐|‐|

Chongqing Changan Cost 13,068,580.00 13,068,580.00 ‐ 13,068,580.00 95.00 95.00 N/A
International Automobile ‐ ‐ ‐ Sales Co., Ltd
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Chongqing ChanganAutomobile supportingservice Co., Ltd.|Cost|29,700,000.00|29,700,000.00|‐|29,700,000.00|99.00|99.00|N/A|‐|‐|‐|
|Chongqing ChanganAutomobile Sales Co., Ltd|Cost|48,500,000.00|48,500,000.00|‐|48,500,000.00|100.00|100.00|N/A|‐|‐|‐|
|Chongqing ChanganAutomobile salessubsidiaries|Cost|8,050,000.00|8,050,000.00|‐|8,050,000.00|90‐100.00|90‐100.00|N/A|‐|‐|‐|
|Chongqing Changan SpecialAutomobile sales Co., Ltd|Cost|2,500,000.00|2,500,000.00|‐|2,500,000.00|50.00|50.00|N/A|‐|‐|‐|
|Chongqing Changan EuropeDesign Academy Co.,Ltd|Cost|134,879,700.00|134,879,700.00|‐|134,879,700.00|100.00|100.00|N/A|‐|‐|‐|
|Chongqing Changan newEngergy Automobile Co.Ltd|Cost|18,850,000.00|18,850,000.00|‐|18,850,000.00|65.00|65.00|N/A|‐|‐|‐|
|Changan United KingdomR&D Center Co., Ltd.|Cost|981,934.40|981,934.40|‐|981,934.40|100.00|100.00|N/A|‐|‐|‐|
|Beijing Changan R&D CenterCo., Ltd.|Cost|1,000,000.00|1,000,000.00|‐|1,000,000.00|100.00|100.00|N/A|‐|‐|‐|
|Harbin Changan R&D CenterCo., Ltd.|Cost|1,000,000.00|1,000,000.00|‐|1,000,000.00|100.00|100.00|N/A|‐|‐|‐|
|Jiangxi Changan R&D Center|Cost|2,000,000.00|2,000,000.00|‐|2,000,000.00|100.00|100.00|N/A|‐|‐|‐|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Initial amount|Beginning|Addition/(deduction)|Ending|Shareholdingpercentage(%)|Votingpercentage (%)||Explanation for|Impairment|Currentprovision|Current cashdividends|
||||||||||the difference||||
||||||||||between||||
||||||||||shareholding||||
||||||||||percentage and||||
||||||||||voting||||
||||||||||percentage||||
|Co., Ltd.|||||||||||||
|Shanghai Changan R&DCenter Co., Ltd.|Cost|1,000,000.00|1,000,000.00|‐|1,000,000.00|100.00|100.00|N/A||‐|‐|‐|
|Changan Japan DesigningCenter Co., Ltd.|Cost|1,396,370.15|1,396,370.15|‐|1,396,370.15|100.00|100.00|N/A||‐|‐|‐|
|Changan United States R&DCenter Co., Ltd.|Cost|1,317,720.00|1,317,720.00|‐|1,317,720.00|100.00|100.00|N/A||‐|‐|‐|
|Hebei Baoding Changan BusCo., Ltd.|Cost|176,002,613.18|176,002,613.18|‐|176,002,613.18|100.00|100.00|N/A||‐|‐|‐|

Others
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|China South Industry GroupFinance Co., Ltd|Cost|80,000,000.00|80,000,000.00|‐|80,000,000.00|5.33|5.33|N/A|‐|‐|6,000,000.00|
|Chongqing Ante Import andExport Co., Ltd|Cost|3,000,000.00|3,000,000.00|‐|3,000,000.00|10.00|10.00|N/A|‐|‐|‐|
|Sichuan Glass Co., Ltd|Cost|1,809,274.00|1,809,274.00|‐|1,809,274.00|0.64|0.64|N/A|‐|‐|‐|
|Zhong Fa Lian InvestmentCo., Ltd|Cost|21,000,000.00|21,000,000.00|‐|21,000,000.00|10.00|10.00|N/A|‐|‐|‐|
|CAERI(Beijing) automotiveLightweight TechnologyResearch Institution Co.,Ltd|Cost|3,000,000.00|‐|3,000,000.00|3,000,000.00|6.89|6.89|N/A|‐|||
|Total|‐|5,555,580,964.76|8,699,054,987.27|186,943,880.48|8,885,998,867.75|‐|‐|‐|‐|‐|1,806,000,000.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
4. Operating revenue and cost
(1) Operating revenue, operating cost
||||||
|-|-|-|-|-|
|Item||2013||2012|
|Operating revenue|32,188,012,740.23||21,959,079,719.69||
|Other operating revenue|1,048,667,930.67||880,173,248.74||
|Total revenue|33,236,680,670.90||22,839,252,968.43||
|Operating cost|27,245,442,791.23||18,312,319,774.19||

 (2) Operating revenue listed by products as follows:
||||||
|-|-|-|-|-|
|Industry|2013||2012||
||Revenue|Cost of sales|Revenue|Cost of sales|
|Sales of goods|31,975,794,961.23|26,465,052,809.03|21,729,587,686.98|17,545,172,069.53|
|Outsourcingprocessing|212,217,779.00|189,666,364.44|229,492,032.71|212,697,469.77|
|Total|32,188,012,740.23|26,654,719,173.47|21,959,079,719.69|17,757,869,539.30|

 (3) Operating revenue from top five customers are as follows:
||||
|-|-|-|
|Customer|Amount|Proportion of total operatingrevenue (%)|
|First|1,067,011,979.75|3.21|
|Second|918,704,839.41|2.76|
|Third|628,449,359.05|1.89|
|Fourth|609,211,116.96|1.83|
|Fifth|590,765,459.59|1.79|
|Total|3,814,142,754.76|11.48|

 TheCompany’s operating activities are principally related to the sales of motor vehicles and accessories. The100% of sales are domestic (2012:100%). So segment reporting information is not needed.
5. Investment income
(1) Details of investment income
|||||
|-|-|-|-|
|Item||2013|2012|
|Long‐term equity investment income under cost method|27,013,203.42||6,000,000.00|
|Long‐term equity investment income under equity method|4,474,644,845.42||1,860,722,181.38|
|Long‐term equity investment income through disposal|(250,733.75)||‐|
|Dividend from Available‐for‐sale financial assets|1,775,000.00||‐|
|Others|10,941,666.67||266,666.67|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||
|-|-|-|
|Total|4,514,123,981.76|1,866,988,848.05|

 (2) Long‐term equity investment income under cost method
|||||||
|-|-|-|-|-|-|
||Investee||2013||2012|
|China South Industry Group Finance Co., Ltd||23,413,203.42||6,000,000.00||
|Chongqing Anfu Automobile sales Co., Ltd||3,600,000.00||‐||
||Total|27,013,203.42||6,000,000.00||

Long‐term investments under cost method with no cash receipt for investment income were excluded in above table.
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(3) Long‐term equity investment income under equity method
||||||||
|-|-|-|-|-|-|-|
||Investee||2013||2012|Reason for the fluctuation|
|Changan Ford Automobile Co.,Ltd.||4,091,202,560.31||1,563,978,672.73||Increase in profit due to salesexpansion|
|Changan Mazda Automobile Co.,Ltd||49,976,658.52||17,470,973.80||Increase in profit due to salesexpansion|
|Chongqing Changan SuzukiAutomobile Co., Ltd||917,918.98||49,340,446.81||Decrease in profit due to salesdecline|
|Changan Ford Mazda EngineCo., Ltd||124,232,371.10||14,819,417.33||Increase in profit due to salesexpansion|
|Jiangling Holding Co., Ltd||263,346,186.29||213,752,535.42||Increase in profit due to salesexpansion|
|Chongqing HelpGo InformationTechnology Co., Ltd||‐||(1,460,080.64)||Terminated in this year|
|Chongqing Xiyi AutomobileLinkage Rod Co., Ltd||357,036.55||750,367.82||Decrease in profit due to salesdecline|
|Beijing Fang’an Taxi Co., Ltd||(5,001,370.36)||‐||Decrease in profit due to salesdecline|
|Changan PSA Automobiles Co.,Ltd||(50,584,027.86)||‐||New joint venture (refer to NoteV 11 for details)|
|Chongqing Changan KuayueAutomobile sales Co.,Ltd||‐||(1.00)|||
|Chongqing Changan KuayueAutomobile Co.,Ltd||197,511.89||2,069,849.11||Decrease in profit due to salesdecline|
||Total|4,474,644,845.42||1,860,722,181.38|||

6. Notes to cash flow statement
(1) The major cash received relating to other operating activities:
||||
|-|-|-|
|Item|2013|2012|
|Interest income|115,591,355.69|97,452,591.77|
|Government grants related to operating|893,123,900.00|538,916,181.25|
|Total|1,008,715,255.69|636,368,773.02|

 (2) The major cash paid relating to other operating activities:
||||
|-|-|-|
|Item|2013|2012|
|Selling expense|2,988,565,770.18|1,863,729,042.96|
|Administrative expense|838,625,722.76|924,044,854.77|
|Total|3,827,191,492.94|2,787,773,897.73|

 (3) The major cash received relating to other investing activities:
||||
|-|-|-|
|Item|2013|2012|
|Government grants related to assets|‐|205,000,000.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
||||
|-|-|-|
|Receiving repayment from subsidiaries|150,000,000.00|‐|
|Total|150,000,000.00|205,000,000.00|

 (4) The major cash paid relating to other investing activities:
||||
|-|-|-|
|Item|2013|2012|
|Prepayment for equity investment|‐|703,015,710.00|
|Borrowings to subsidiaries|250,000,000.00|150,000,000.00|
|Total|250,000,000.00|853,015,710.00|

Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2013
(Expressed in Renminbi Yuan)
(5) The major cash paid relating to other financing activities:
||||
|-|-|-|
|Item|2013|2012|
|Repurchased B share|‐|496,926,898.50|
|Total|‐|496,926,898.50|

 7. Supplementary information of cash flow statement
|||||||
|-|-|-|-|-|-|
||Supplementary information||2013||2012|
|1．Cash flows from operating activities calculated byadjusting the net profit||||||
|Net profit||3,747,890,752.67||1,621,508,997.69||
|Add: impairment provision for assets||241,584,456.52||247,823,520.81||
|Depreciation of fixed assets||1,124,026,456.36||777,900,767.37||
|Amortization of intangible assets||287,473,299.21||249,849,820.04||
|Amortization of long‐term deferred expense||180,080.00||180,080.00||
|Amortization of deferred income||(58,041,952.69)||(47,106,402.56)||
|Disposal loss on fixed assets, intangible assets and otherslong‐term assets||10,303,001.02||1,428,373.62||
|Financial expense||197,143,461.64||136,500,131.15||
|Investment income||(4,514,123,981.76)||(1,866,988,848.05)||
|Increase in deferred tax assets||(156,541,094.76)||(299,251,661.95)||
|Increase in inventory||(671,016,275.79)||(973,144,364.10)||
|Increase in operating receivables||(5,278,831,955.38)||(3,863,759,157.70)||
|Decrease in operating payables||6,689,306,817.50||4,591,239,403.91||
|Net cash flows from operating activities||1,619,353,064.54||576,180,660.23||
|2．Major non‐cash investing and financing activities||||||
|Government grants related to assets||‐||860,000,000.00||
|3．Movement of cash and cash equivalents||||||
|Ending balance of cash||3,290,584,684.00||3,081,165,146.84||
|Less: beginning balance of cash||3,081,165,146.84||3,748,480,642.89||
|Add: ending balance of cash equivalents||‐||‐||
|Less: beginning balance of cash equivalents||‐||‐||
|Increase in cash and cash equivalents||209,419,537.16||(667,315,496.05)||

1. Schedule ofnon‐recurring profit and loss
|||||
|-|-|-|-|
||Item||Amount|
|Gain and loss arising from disposal of non‐current assets (including write‐off of accruedimpairment loss on assets)||(12,900,068.51)||
|Government grants (excluding the grants closely related to enterprise business, whichthe Group enjoyed according to the allotment standards or quantitative criteria of thecountry)||196,086,391.16||
|Investment income from the fair value changes of held for trading financial assets orliabilities, and the disposal of held for trading financial assets, liabilities or available forsale financial assets||(332,407.00)||
|Other non‐operating income and expenses||1,842,308.38||
|Capital occupied income from non‐financial entities||44,444,713.09||
|Effect on income tax||(45,704,294.34)||
|Effect on minority shareholders (after tax)||(1,212,068.41)||
||Total|182,224,574.37||

 Note: thenon‐recurring profit and loss were presented with amount before tax.
The Group disclosednon‐recurring profit and loss items in accordance with the regulations issued by China Security Regulation Commission, No 1 Regulation of Information Disclosure of PublicCompanies‐Non‐recurring Profit and Loss<CSRC2008(43)> 2. Return on equity and earnings per share
2013
|||||||
|-|-|-|-|-|-|
|Current profit|Weighted average return onequity (%)||Earnings per share|||
||||Basic EPS||Diluted EPS|
|Net profit attributable to the Company’sordinary shareholders|20.44|0.75||N/A||
|Net profit attributable to the Company’sordinary shareholders after deductingnon‐recurring profit and loss|19.38|0.71||N/A||

2012
|||||
|-|-|-|-|
|Current profit|Weighted average return onequity (%)|Earnings per share||
|||Basic EPS|Diluted EPS|

|||||
|-|-|-|-|
|Net profit attributable to the Company’sordinary shareholders|9.66|0.31|N/A|
|Net profit attributable to the Company’sordinary shareholders after deductingnon‐recurring profit and loss|7.16|0.23|N/A|

Except dividend allotted, transfer of reserve to common shares and separation or combination of share, other conditions, as sharebuy‐back and potential issuance new shares and potential transfer of share and exercise of share, cause the substantial change in ordinary shares or potential ordinary shares, which must be considered during the calculation of earnings per share. 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.
3. The major fluctuation and related explanation of theGroup’s financial statements
The financial statement items whose fluctuation percentage between two reporting periods is larger than30%, fluctuation amount larger than5% of total assets or10% of net profit, name is not a reporting item specified by accounting principles, or nature cannot be reflected by the name, are as follows:
1. The operating revenue, cost and operating expenses increased by31%,32% and35% respectively, which were consistent with the prosperous automobile market. During the current year, the sale of the new vehicles launched in last year was growing up, such as Eado and CS35, which were well received by the market.
The sales increased in accordance with the prosperous automobile market in year 2013. The sales volume of cars increased by about 148,000 compared to last year. Thus, the operating costs and the operating expenses increased in accordance with the revenue increased.
2. The financial expenses increased by149% compared to last year, mainly due to the increase of interest expense. The Group borrowed morelong‐term loans than last year and the interest bearing time of bonds was four months more than last year. 3. The Investment income increased by141% compared to last year, mainly due to the increase of the jointventures’ net profit. 4. Thenon‐operating income decreased by47% compared to last year, mainly due to the decrease of government grants received this year.
5. Thenon‐operating expenses increased by153% compared to last year, mainly due to the increase of fixed assets disposal loss.
6. The income tax expenses decreased by75%, mainly due to the total profit of the Group decreased despite of the investment income.
7. The prepayment increased by about RMB200 million, mainly due to the Group increased the prepayment for steel materials of RMB141 million to satisfy the expansion of production as the sales market was forecasted to maintain the favorable trend. Besides, the Group increased the expenditure on advertisements in order to expand its reputation and brand promotion. At the end of the year, there were about RMB58 million prepaid advertising expenses.
8. The other receivables increased by about RMB74 million, mainly due to the increase volume of cars sold. Thus the Group had moreenergy‐saving subsidy receivable amounted to RMB67 million from the local bureau of finance according to thegovernment’s policy.
9. Thelong‐term equity investments increased by RMB4.87 billion, mainly due to the increase of investment income generated from the joint ventures and associates by RMB4.50 billion. Besides, the Company completed the acquisition for CAPSA, which increased the cost of investments by RMB2 billion. Meanwhile, thelong‐term equity investments decreased by RMB1.6 billion as the company received the dividend from Changan Ford Automobile Co., Ltd. All these above reasons caused the balance of thelong‐term equity increased.
10. The construction in progress decreased by RMB1.48 billion, mainly due to some projects such as Vehicle Research Institution and Engine Production had transferred to fixed assets.
11. The development expenditure increased by about RMB313 million, mainly due to the decrease of amount transferred to intangible assets from completed projects.
12. The othernon‐current assets decreased by RMB678 million, mainly due to the Company had completed the stock acquisition oflong‐term equity investment of CAPSA, which caused the balance decreased by RMB703 million.
13. The payroll payable increased by85%, mainly due to the increase of the bonus as a result of the increase of the profit compared to year 2012.
14. The tax payable increased by168%, mainly due to the increase of the consumption tax payable and VAT payable as a result of revenue and profit increased.
15. The contingent liabilities increased by65%, mainly due to the increase of the warrantee as a result of revenue increased. 16. Thenon‐current liability within one year increased by RMB502 million was due to the reclassification oflong‐term loans increased.
17. The special payable increased by RMB82.6 million, mainly due to the Group received a fund specialized in the development and industrialization of C206 pure electric cars amounted to RMB80 million.
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. Zhao Baolin
Chongqing Changan Automobile Co., Ltd.
15 April, 2014