江铃汽车披露2026年半年报，核心盈利数据与7月业绩快报一致

1
Jiangling Motors Corporation, Ltd.






2026 Half-year Report


2026-08




2
Chapter I Important Notes, Contents and Abbreviations

Important Notes
The Company’s Board of Directors and its members and senior management
warrant that the contents of the Half‑Year Report are true, accurate and
complete, free of any false records, misleading statements or material
omissions, and assume individual and joint‑and‑several legal liabilities therefor.
Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department,
Jiang Nan, warrant that the Financial Statements in this Half-year Report are
true, accurate and complete.

All the Directors were present at the Board meeting to review this Half-year
Report.

Future plans, development strategies and other forward-looking statements in
this Report do not constitute a substantive commitment of the Company to
investors. Investors are reminded to note investment risks.

The Company's possible risks and countermeasures are set out in Section 3 of
this Report, "Management’s Discussion and Analysis". Please investors refer
to the relevant content.

Neither cash dividend nor stock dividend is to be distributed. The Board has
decided not to convert capital reserves into share capital for this period.

The Half-year Report is prepared in Chinese and English. In case of
discrepancy, the Chinese version will prevail.






3
Contents

Chapter I Important Notes, Contents and Abbreviations ......................... 2
Chapter II Brief Introduction and Operating Highlights ............................. 5
Chapter III Management Discussion and Analysis .................................... 8
Chapter IV Corporate Governance Structure, Environment and Social ... 21
Chapter V
Major events .......................................................................... 23
Chapter VI Share Capital Changes & Shareholders ................................ 27
Chapter VII Bond related Information ........................................................ 31
Chapter VIII Financial Statements ............................................................. 32






4
Catalogue on Documents for Reference

1. Originals of 2026 Half-year financial statements signed by Chairman, Chief
Financial Officer and Chief of Finance Department.
2. Originals of all the documents and public announcements disclosed in
newspapers designated by CSRC in the first half of 2026.
3. English version of the Half-year Report prepared per the China GAAP.


Abbreviations:
CSRC



China Securities Regulatory Commission
JMCG



Jiangling Motors Group Co., Ltd.
Ford



Ford Motor Company
JIC Nanchang Jiangling Investment Co., Ltd.
JMC or the Company

Jiangling Motors Corporation, Ltd.
EVP



Executive Vice President
CFO



Chief Financial Officer
VP




Vice President

5
Chapter II Brief Introduction and Operating Highlights

1. Company’s information
Share’s name
Jiangling Motors, Jiangling B Share’s Code 000550, 200550
Place of listing
Shenzhen Stock Exchange
Company’s Chinese
name
江铃汽车股份有限公司
English name
Jiangling Motors Corporation, Ltd.
Abbreviation
JMC
Company legal
representative
Qiu Tiangao

2. Contact person and method

Board Secretary
Securities Affairs Representative
Name
Wu Jiehong
Quan Shi
Address
No. 2111, Yingbin Middle Avenue,
Nanchang City, Jiangxi Province,
P.R.C
No. 2111, Yingbin Middle Avenue,
Nanchang City, Jiangxi Province,
P.R.C
Tel
86-791-85266178
86-791-85266178
Fax
86-791-85232839
86-791-85232839
E-mail
relations@jmc.com.cn
relations@jmc.com.cn

3. Other matters
I. Contact methods
Changes of registered address, headquarter address, postal code, website
and e-mail in the reporting period
□Applicable Not Applicable

The Company's registered address, headquarter address, postal code,
website and e-mail remain unchanged during the reporting period.
For details, please refer to the 2025 Annual Report.

II. Changes of newspapers and website for information disclosure, and place
for accessing half-year report in the reporting period
□Applicable Not Applicable
There is no change of names of the media and website of Stock Exchange for
publication of the Company’s Half-year Report and the place for accessing the
Company’s Half-year Report in the reporting period. Please refer to 2025
Annual Report for details.

III. Other Relevant Information
Whether other relevant information has changed during the reporting period
□Applicable Not Applicable



6
4. Main accounting data and financial indicators
Whether the previous accounting data should be retroactively adjusted?
□Yes No



Unit: RMB

Reporting period
(2026 first half)
Same period
last year
Change (%)
Revenue
19,361,867,251
18,092,386,210
7.02%
Profit Attributable to the
Equity Holders of the
Company
738,802,231
732,728,047
0.83%
Net Profit Attributable to
Shareholders of Listed
Company After
Deducting Non-Recurring
Profit or Loss
598,112,705
539,916,206
10.78%
Net Cash Generated
From Operating Activities
597,893,721
-64,497,784
1,027%
Basic Earnings Per
Share (RMB)
0.86
0.85
1.18%
Diluted Earnings Per
Share (RMB)
0.86
0.85
1.18%
Weighted Average
Return on Equity Ratio
6.12%
6.30%
Down 0.18
percentage points

At the end of the
reporting period
At the end of the
previous year
Change (%)
Total Assets
31,876,243,256
33,725,291,097
-5.48%
Shareholders’ Equity
Attributable to the Equity
Holders of the Company
11,963,695,309
11,700,238,217
2.25%

5. Accounting data difference between China GAAP and IFRS

I. Differences in net profit and net assets in financial statements between in
accordance with international accounting standards and Chinese accounting
standards
□Applicable Not Applicable

II. Differences in net profit and net assets in financial statements between in
accordance with overseas accounting standards and Chinese accounting
standards
□Applicable Not Applicable

6. Non-recurring profit and loss items and amounts
Applicable □Not Applicable


7


Unit: RMB
Details of other profit and loss items that meet the definition of non-recurring
profit and loss
□Applicable Not Applicable
There is no other profit and loss items that meet the definition of non-recurring
profit and loss in the Company.
The description of the non-recurring profit and loss items listed in Corporate
Information Disclosure of Public Issuing Securities No.1 are defined as
recurring profit and loss items
□Applicable Not Applicable
The Company does not have a situation in which the non-recurring profit and
loss items listed in No.1 of Corporate Information Disclosure Announcement
No.1 are defined as recurring profit and loss.



Reporting period
(2026 first half)
Profit and loss of non-current assets disposal (including
the charge-off part of the asset impairment provision)
4,574,194
Government subsidies included in the current profit and
loss
164,601,774
In addition to the effective hedging business related to
the normal operating business of the Company, holding
the gains and losses of fair value changes arising from
trading financial assets and trading financial liabilities,
as well as the investment income obtained from the
disposal of trading financial assets, trading financial
liabilities and available for sale financial assets
989,383
Capital occupation fee charged for non-financial
enterprises included in the current profit and loss
1,978,923
Return of the impairment provision for receivables with
a separate impairment test
1,558,669
Other non-operating income and expenses except the
above
-1,613,481
Less: Income tax impact amount
27,724,936
Influence of minority shareholders' equity
3,675,000
Total
140,689,526

8
Chapter III
Management Discussion and Analysis

1. Company’s Core Business During the Reporting Period

JMC is a comprehensive automotive manufacturer integrating R&D,
manufacturing, sales, and service of complete vehicles and automotive
components. It is a National High-Tech Enterprise, a National Innovative Pilot
Enterprise, and a "National Vehicle Export Base," and has been ranked among
the world's 100 most valuable automotive brands for many consecutive years.
Its main products include JMC-brand light truck, Pickup, and light bus, as well
as Ford-brand light bus, pickup trucks, MPV, and other commercial vehicles
and passenger SUV models. The company also produces engines, frames,
axles, and other components.

In terms of R&D strategy, the company is building a technological innovation
system centered on new energy vehicle technologies, intelligent connected
vehicle technologies, and other key areas. In the first half of 2026, the company
has achieved phased breakthroughs in core technology development, including
hybrid powertrain systems, NVH control, and power platforms. In the field of
intelligence, it is advancing the development of a next-generation vehicle
architecture platform, with a focus on centralized computing, integrated cockpit
and autonomous driving, and full-scenario intelligent driving, while pursuing the
goals of high scalability, high commonality, high safety, and high cost-
effectiveness.

In terms of manufacturing, the company has comprehensively deployed smart
manufacturing. The two major vehicle manufacturing bases at Xiaolan and
Fushan have fully established a complete whole-chain vehicle manufacturing
system, including stamping, welding, painting, final assembly, CKD parts
warehousing, vehicle testing tracks, and intelligent logistics support. The overall
automation rate reaches as high as 98%, with 100% automation in core
assembly operations, forming full-industry-chain manufacturing capabilities for
light commercial vehicles and their components.

In terms of sales and service, in the domestic market, it took the lead in
establishing a modern marketing system, adopting an exclusive dealership
model integrating sales, spare parts, service, and survey—a "four-in-one"
approach—with over 1,000 dealerships in total. In overseas markets, the
company continues to expand cooperative distribution channels, with its export
footprint now covering more than 120 countries and regions worldwide. In the
first half of 2026, cumulative exports grew by 44.8% year-on-year.


9
In terms of the post-sales ecosystem, the company is deeply engaged in urban
delivery capacity, providing customers with cost-effective new energy
commercial vehicle operation solutions. At the same time, it is deepening
collaboration in the used-vehicle sector and making strategic deployments in
battery-swapping services, autonomous vehicles, and other ecosystem
initiatives.

Looking ahead, the company will continue to focus on core technology areas
such as new energy powertrains, intelligent connected vehicles, and next-
generation platforms. It will accelerate its global expansion, adhere to value-
driven and lean operations, and transition from a scale-expansion development
model to a lean value-growth model.

2. Core Competitiveness Analysis

The Company is a modern Sino-foreign joint venture stock-limited enterprise
integrating automotive R&D, manufacturing, and sales. Leveraging its leading
position in the light commercial vehicle market and advanced technologies, it
stands as a pioneer in China's automotive industry, providing superior products
and solutions for the smart logistics sector. The Company is recognized as a
National High-tech Enterprise, a National Innovative Pilot Enterprise, a
State-recognized Corporate Technology Center, a National Industrial Design
Center, a National Intellectual Property Demonstration Enterprise, and a
National Vehicle Export Base. It has been listed among the world's top 100
most valuable automotive brands for multiple consecutive years. Guided by its
corporate vision of ‘Smart Mobility, Global Connectivity ’, We strive to evolve
into a green and smart mobility technology company with cutting-edge
technologies, superior quality and worldwide customer trust. In the first half of
2026, within its industry segments: JMC light buses maintained the No. 1
market share; JMC pickup trucks ranked No. 2 in market share; JMC light trucks
ranked No. 7 in market share.

The Company has always remained customer-centric. As a provider of full-
scenario solutions for light commercial vehicles, it offers customized and
scalable integrated solutions based on customer usage scenarios, continuously
covering urban delivery, passenger commuting, recreational camping, medical
emergency services, and specialized modification applications. Through C2B
customized product services, end-to-end logistics solutions, and mobility
platform services, the Company helps customers improve operational efficiency
and reduce total cost of ownership throughout the vehicle lifecycle.

The Company continues to refine its product portfolio of light bus, light truck,
and Pickup. JMC light buses address the needs of freight transport, passenger
transport, and specialized modifications, while strengthening the synergy

10
between conventional powertrain and new energy products. JMC light trucks,
driven by customer insights, are steadily advancing new energy models such
as the E-Shunda and the next-generation Shunda series, enhancing loading
efficiency, driving comfort, and energy savings. JMC pickup trucks are available
in three major series—Baodian, Yuhu, and Daodao—covering a wide range of
applications from workhorse tools and commercial-passenger dual-purpose
vehicles to off-road leisure models. With scenario-based variants, the Company
is enriching its full-price-band product matrix.

The Company adheres to a dual-brand strategy encompassing its own
proprietary brand and the Ford brand, fully leveraging its own strengths while
deeply integrating into Ford's global system. In terms of technological R&D, the
Company draws on Ford's global platforms to continuously enhance its
independent R&D system and global digital design platform, and collaborates
with Ford on the development, design, and launch of specific new products.

In terms of brand ecosystem development, the Ford brand continues to build
the "Ford Beyond" lifestyle system, which encompasses four major pillars:
experience spaces, outdoor lifestyle communities, personalized boutique
modifications, and vehicle services/support, delivering a comprehensive off-
road and outdoor experience for users. The Ford Bronco Basecamp further
enriches the new-energy off-road product lineup and was awarded the Red Dot
Product Design Award in 2026 during the reporting period. The locally produced
Ford Bronco and Ford Ranger continue to meet user demands for performance,
personalization, premium features, and intelligent configurations through a
diverse range of series and variants.

In terms of manufacturing management, the Company operates vehicle
production bases including the Xiaolan Plant and the Fushan Plant,
encompassing advanced manufacturing processes for stamping, welding,
painting, final assembly, as well as diesel and gasoline engine production. It
continues to build highly intelligent and highly flexible smart manufacturing
centers, and enhances multi-variant production efficiency and product quality
consistency through digital quality management, flexible production scheduling,
and supply chain coordination.

In terms of autonomous driving, the Company continues to deepen the
commercial deployment of L4 autonomous delivery vehicles, with a focus on
the development and operation of autonomous driving systems for intra-city
freight scenarios. It is advancing the coordinated validation of autonomous
driving systems, vehicle platforms, and operational use cases, driving the
transformation of its commercial vehicle products into smart mobile terminals.


11
In the field of new energy vehicles, the Company pursues steady yet aggressive
progress, accelerating the expansion of its electric vehicle portfolio and market
development. For passenger vehicles, it leverages the Ford Bronco Basecamp
to broaden new-energy outdoor scenarios. For commercial vehicles, it
continues to advance products such as the E-Fushun, E-Shunda, and
heavy-duty wide-body high-capacity electric light trucks, refining its new-energy
product lineup with a focus on greater loading space, enhanced transport
capability, and lower operating costs. Through initiatives such as "JMC Fun-to
Drive," the Company explores synergies across products, services, and
operational ecosystems.

In terms of export operations, the Company leverages its diversified market
expansion capabilities and product quality to continuously promote its light
commercial vehicles, pickup trucks, and SUV in overseas markets. The all-new
second-generation Ford Territory gasoline and hybrid models have been
introduced to markets in the Middle East, Africa, Latin America, the Philippines,
and Indochina, with the export product mix and regional footprint steadily being
refined.

3. Core Business Analysis

Summary
Refer to the relevant content of “1. the Company’s Core Business During the
Reporting Period”.

Year-over-Year Changes of Main Financial Data
Unit: RMB

2026 1H
2025 1H
YOY change
（%）
Reason
Revenue
19,361,867,251
18,092,386,210
7.02%
Cost of sales
17,006,947,505
15,539,656,822
9.44%
Distribution costs
391,175,890
466,792,493
-16.20%
Administrative expenses
411,224,874
460,681,221
-10.74%
Finance expense
-44,583,409
-55,376,687
19.49%
Income tax expense
90,395,586
84,084,738
7.51%
Research and
Development Expenditure
658,610,108
785,291,234
-16.13%
Net cash generated from
operating activities
597,893,721
-64,497,784
1,027%
Mainly due to the
growth in sales and
improved efficiency
in collecting
payments from
dealers.
Net cash used in investing
activities
-363,314,849
-430,065,793
15.52%

12
Net cash used in financing
activities
-1,617,489,156
-199,608,603
-710.33%
Mainly due to the
decrease in short-
term borrowings
Net increase/(decrease) in
cash and cash equivalents
-1,382,910,284
-694,172,180
-99.22%
Mainly due to the
decrease in short-
term borrowings
Significant changes in the composition or source of profits during the reporting
period
□Applicable Not Applicable
There was no significant change in the composition or source of profits in the
period.

Composition of Core Business
Unit: RMB

2026 First Half
2025 First Half
YOY change
（%）
Amount
Proportion
(%)
Amount
Proportion
(%)
Revenue
19,361,867,251
100% 18,092,386,210
100%
7.02%
By Industry
Automobile Industry
19,361,867,251
100% 18,092,386,210
100%
7.02%
By Products
Vehicle
17,693,463,556
91.38% 16,700,185,890
92.30%
5.95%
Material and Components
1,002,068,386
5.18%
1,099,382,084
6.08%
-8.85%
Maintenance, technical
services and other
666,335,309
3.44%
292,818,236
1.62%
127.56%
By region
China
19,361,867,251
100% 18,092,386,210
100%
7.02%
Reach 10% of Revenue or Profit by Industry, Product or Region
Applicable □Not Applicable
Unit: RMB

Turnover
Cost
Gross
Margin
Y-O-Y turnover
change (%)
Y-O-Y Cost
Change (%)
Y-O-Y gross
margin change
(points)
By Industry
Automobile
Industry
19,361,867,251
17,006,947,505
12.16%
7.02%
9.44%
-1.95%
By Products
Vehicle
17,693,463,556
15,957,405,543
9.81%
5.95%
9.58%
-2.99%
By Region
China
19,361,867,251
17,006,947,505
12.16%
7.02%
9.44%
-1.95%
If the Company’s core business scope is adjusted during the reporting period,
the Company’s core business data of last year need to be adjusted per the
scope in this year
□Applicable Not Applicable

4. Non-core business analysis
□Applicable Not Applicable

5. Analysis of Assets and Liabilities

13
I. Major changes
Unit: RMB
Asset item
June 30, 2026
December 31, 2025
YOY
Proportion
change
Amount
Proportion
Amount
Proportion
(Points)
Cash and cash equivalents
12,171,980,445
38.19%
13,582,540,346
40.27%
-2.08%
Accounts receivable
6,318,608,512
19.82%
6,141,405,767
18.21%
1.61%
Inventories
2,115,057,030
6.64%
2,011,925,708
5.97%
0.67%
Long-term equity
investments
175,003,168
0.55%
203,641,921
0.60%
-0.05%
Fixed assets
5,486,106,001
17.21%
5,789,423,822
17.17%
0.04%
Construction in progress
549,633,231
1.72%
507,614,873
1.51%
0.21%
Right-of-use asset
80,664,967
0.25%
120,243,307
0.36%
-0.11%
Short-term borrowings
350,000,000
1.10%
1,950,000,000
5.78%
-4.68%
Contract liabilities
510,991,920
1.60%
545,864,754
1.62%
-0.02%
Long-term borrowings
223,004
0%
460,276
0%
0%
Lease liabilities
33,555,476
0.11%
44,860,116
0.13%
-0.02%

II. Main Overseas Assets
□Applicable Not Applicable

III. The fair value of the assets and liabilities.
Applicable □Not Applicable
Unit: RMB
Item
financial
assets
1.Trading
financial
assets
(excluding
derivative
financial
assets)
financial
assets
Subtotal
Financing
receivables
Subtotal
Financial
liabilities
Beginning
of the
period

801,902,466
801,902,466
205,851,591
1,007,754,057
0
Loss/profit
in fair value
in the
period
-164,274
-164,274

-164,274

Cumulative
changes in
fair value
recorded
into equity





Impairment
in the
period





Purchase in
the period
1,600,000,000 1,600,000,000 4,753,827,271
6,353,827,271


14
Sell in the
period
1,600,000,000 1,600,000,000 4,911,183,521
6,511,183,521

Other
changes





End of the
period
801,738,192
801,738,192
48,495,341
850,233,533
0
Other change
None.

Whether there is a significant change in the measurement attributes of the
Company's main assets during the reporting period
□Applicable Not Applicable

IV. Restriction on Assets Rights as of the End of the Reporting Period


Unit: RMB
Items
Book value at the end
of the period
Cause for restriction
Cash and cash
equivalents
26,196,044 Frozen funds for litigation.

6. Investment Analysis
I. Summary
□Applicable Not Applicable

II. Obtained Major Equity Investment during the Reporting Period
□Applicable Not Applicable

III. Ongoing Major Non-Equity Investment during the Reporting Period
□Applicable Not Applicable

IV. Financial Assets Investment
(a) Stock Investment
□Applicable Not Applicable
There was no stock investment during the reporting period.

(b)Derivative Investment

Applicable □Not Applicable

(1) Derivative investments for hedging purposes during the reporting period
Applicable □Not Applicable
Units: RMB’000
Types of Derivatives Investments
Foreign
Exchange -
Forward
Purchase
Total
Initial investment amount
115,850
115,850

15
Amount at the beginning of the year
115,850
115,850
Gains and losses on fair value changes during the
period
-3,900
-3,900
Cumulative fair value changes recognized in equity
-4,060
-4,060
Amount acquired during the reporting period
42,830
42,830
Amount sold during the reporting period
66,600
66,600
Amount at the end of the year
92,080
92,080
Proportion of the investment amount at the end of
the period to the Company's net assets at the end
of the reporting period
0.77%
0.77%
Statement on whether there
were significant changes of the
accounting policies and specific
principles of accounting applied
to hedging activities during the
reporting period as well as
compared with the previous
reporting period
No.
Explanation of actual gains and
losses during the reporting
period
The actual trading loss amounted to RMB
160,000.
Description of hedging effects
JMC forward business adheres to the principle of
risk neutrality and is based on normal production
and operation, with the main purpose of
maintaining financial stability and avoiding the risk
of exchange rate fluctuations.
Sources of funds for derivatives
investments
Self-owned funds.
Risk analysis and description of
control measures for derivative
positions during the reporting
period (including but not limited
to market risk, liquidity risk,
credit risk, operational risk, legal
risk, etc.)
Risk analysis:
1. Market risk: In the case of large exchange rate
fluctuations, losses may arise from the deviation of
the exchange rate of the forward contract from the
market spot rate on the maturity date of the
contract;
2. Liquidity risk: it may be due to inaccurate
forecasts that the delivery date signed by the
forward is inconsistent with the actual delivery
date, resulting in insufficient funds available for
use at the time of delivery, which triggers the risk
of fund liquidity and leads to failure to deliver as
scheduled;
3. Credit risk: It may be due to inaccurate forecast,
the delivery date signed by the forward is not
consistent with the actual delivery period, resulting
in the risk of delayed delivery caused by the
forward foreign exchange transactions cannot be
delivered according to the agreed time;
4. Operational risk: the risk may be caused by
imperfect
internal
control
mechanism
and
improper operation mode of operators;
5. Legal risk: may face legal risks due to
insufficient completeness of contract terms or
disputes over jurisdictional terms.

16
Risk control measures:
1. The Company conducts forward foreign
exchange
transactions
based
on
scientific
forecasts of forward foreign exchange demand in
accordance with its business plan to meet
operational needs, to avoid and prevent the impact
of exchange rate fluctuations on the Company,
and does not engage in speculative transactions;
2. With regard to the possible performance
guarantee issues arising from foreign exchange
derivative transactions, the business execution
department of the Company will establish a
tracking
mechanism
to
implement
tracking
management of the progress of business receipts
and payments to effectively prevent the risk of
default on delivery and ensure that potential
losses are controlled within the minimum scope;
3. Through strengthening the training of business
knowledge, the Company will enhance the
comprehensive business quality of relevant
personnel and improve the ability to identify and
prevent risks;
4. The Company has formulated the Foreign
Exchange
Risk
Control
Process,
and
the
operators strictly follow the requirements of the
system;
5. The Company chooses financial institutions with
legitimate qualifications, good credit and long-term
business
relations
with
the
Company
as
counterparties for forward foreign exchange
transactions, with low risk of default.
Disclosure of changes in the
market prices or fair value of
derivative instruments held
during the reporting period. The
analysis of the fair value of
derivatives shall disclose the
specific valuation methods
applied, as well as the
underlying assumptions and
parameters used.
The Company recognizes and measures the fair
value in accordance with Chapter 7 “Measurement
of Financial Instruments” of “Accounting Standard
for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments”, and the
fair value is basically determined by reference to
the bank's pricing for the purpose of fair value
measurement
and
recognition.
During
the
reporting period, the gain or loss on fair value
changes of foreign exchange forward contracts
amounted to RMB -3.9 million.
Litigation status
No.
Derivatives Investment Approval
Board Announcement
Disclosure Date
2025.12.23

(2) Derivative investments for speculative purposes during the reporting
period
□Applicable Not Applicable
During the reporting period, the Company did not engage in any derivative
investments for speculative purposes.

V. Usage of Raised Fund

17
□Applicable Not Applicable
There was no usage of raised fund on the reporting period.

7. Sales of Major Assets and Equity
I. Sales of Major Assets
□Applicable Not Applicable
No Major Assets were sold during the reporting period.

II. Sales of Major Equity
□Applicable Not Applicable


8. Analysis of major shareholding companies
Applicable □Not Applicable
Operating Results of Main Subsidiaries and Joint-Stock Companies whose
impact on JMC’s net profit more than 10%
Unit: RMB’000
Name of
companies
Jiangling Motors
Sales Corporation,
Ltd
JMC Heavy Duty
Vehicle Co., Ltd.
Jiangling Ford
Automobile
Technology
(Shanghai) Co., Ltd.
Shenzhen Fujiang
New Energy
Automobile Sales
Co., Ltd.
Type of
companies
Whole-owned
subsidiary
Whole-owned
subsidiary
Holding subsidiary
Whole-owned
subsidiary
Main
business
Sales of vehicles
and service parts.
Production and sales
of automobiles,
engines and other
automotive parts
Engineering and
technology research
and experimental
development, sales of
vehicles, new energy
vehicles, auto parts,
etc.
Automotive sales,
car rental, and
other related
services.
Registered
capital
50,000.00
1,323,793.20
2,678,000.00
10,000.00
Assets
5,052,667.10
324,645.40
247,532.50
1,194,772.20
Net assets
112,822.50
300,135.80
-623,881.10
-266,376.30
Turnover
9,726,766.70
2,088.30
12,057.30
119,016.60
Operating
profit
-85,519.60
-6,666.60
5,098.10
-4,078.30
Net profit
-64,067.20
-6,381.00
5,098.10
-3,651.70

Acquisition and disposal of the subsidiaries
□Applicable Not Applicable

Description of the main holding and participating companies
None.


18
9. Structured Entities Controlled by JMC
□Applicable Not Applicable

10. Potential Challenges and Solutions

In 2026, ongoing geopolitical conflicts continued to impact the global economy,
with slowing economic growth, rising inflationary pressures, and heightened
global economic uncertainty. China's domestic economy remained generally
stable, with GDP growing by 4.7% year-on-year in the first half of the year,
demonstrating a trajectory of "stability, resilience, novelty, and optimization,"
achieving both effective qualitative improvement and reasonable quantitative
growth. At the same time, however, China's automotive market has entered a
phase of inventory-based attrition, marked by weak domestic consumer
demand, steadily rising new energy vehicle penetration, and intensifying
industry competition, all of which pose considerable challenges to the
Company's operations. To maintain steady and robust growth, the Company
will focus on the following key areas:

(1) Market competition and demand shifts.
Challenges and risks: In 2026, due to weak big-ticket consumer spending and
the phase-out of policy support, the domestic market continued to contract.
Although export growth in the international market exceeded expectations, the
external environment has become more complex, severe, and uncertain. At the
same time, the fuel-powered vehicle market continued to shrink significantly,
while new energy products grew steadily. Market concentration further
increased, and industry competition grew even more intense, posing
considerable challenges to the Company's operations.

Response measures: The Company will remain customer-centric, grounded in
customer needs and new changes in the market environment, while
continuously exploring new business growth drivers to seize early opportunities
in rapidly evolving industry segments. It will firmly accelerate the strategic pace
of new energy transformation, stabilize its core light commercial vehicle
business, and capture structural opportunities in the new energy sector. At the
same time, the Company will strengthen marketing model innovation,
accelerate channel transformation, continue to explore overseas market
opportunities, and enhance overseas capability building. By continuously
monitoring market and customer insights, it will further improve the
competitiveness of its products and services.

(2) Industry Transformation and Technological Revolution.
Challenges and Risks: The automotive industry is experiencing rapid
technological iteration, with intensive implementation of new safety regulations,
energy consumption constraints, and intelligent connected vehicle compliance
rules. These further raise the bar for new vehicle market access, imposing

19
higher requirements on enterprises' R&D capabilities and management
standards.

Countermeasures: The company is focusing on the "New Four Modernizations"
of the automotive industry—electrification, intelligence, connectivity, and
sharing—by concentrating efforts on core key technologies such as new energy
powertrains, intelligent connected systems, and next-generation vehicle
architecture platforms. On one hand, we are strengthening our R&D foundation
by upgrading supporting hardware for product and technology development,
expanding and cultivating specialized teams capable of independently
developing core technologies, and continuously increasing R&D investment
with a strategic emphasis on core technology areas. On the other hand, we are
advancing internal digital transformation in depth, proactively collaborating with
leading domestic AI model enterprises, universities, and research institutes to
establish collaborative R&D channels, thereby accelerating the deployment of
artificial intelligence technologies across various business scenarios. Through
a synergistic approach that combines independent technology R&D, talent
development, digital upgrading, and industry-university-research collaboration,
we are comprehensively propelling the company toward high-quality
development in electrification, intelligence, connectivity, and sharing.

(3) Cost Competitiveness and Profitability.
Challenges and Risks: As industry competition intensifies, end-user marketing
expenditures continue to rise. At the same time, adverse factors on the supply
side have become increasingly prominent—prices of raw materials such as
precious metals and lithium carbonate are experiencing high-level volatility,
automotive chip supply remains tight with procurement costs rising sharply, and
the international trade environment is complex and ever-changing. With these
multiple pressures converging, the profit margins of the vehicle manufacturing
industry have been continuously squeezed, placing sustained strain on the
company's cost competitiveness and profitability.

Countermeasures: The company remains firmly committed to prioritizing quality
and will continue to provide customers with stable product quality and superior
product services. We will vigorously drive marketing innovation and
transformation to enhance product competitiveness and further expand sales
scale and market share. We will deepen cost reduction and efficiency
improvement efforts by continuously carrying out company-wide cost-saving
initiatives across all domains—covering manufacturing, product R&D,
procurement costs, sales, logistics, and management—to promote optimal
resource allocation, improve the effectiveness of resource investment, and
enhance operational management efficiency. Through these concrete actions,
we aim to improve the company's overall cost competitiveness and profitability,
to support the company's high-quality development.


20
11. Development and implementation of the market value management system
and valuation enhancement plan
Whether the Company has a market value management system in place.
□Yes No

Whether the Company has disclosed plans for valuation enhancement.
□Yes No

12. Implementation of the action plan of "Double Enhancement of Quality and
Return"
Whether the Company has disclosed the action plan of "Double Enhancement
of Quality and Return".
□Yes No

21

Chapter IV Corporate Governance Structure, Environment
and Social

1. Changes of Directors and senior management
Applicable □Not Applicable

2. Proposal on profit distribution and converting capital reserve to share
capital for the reporting period
□Applicable Not Applicable
The Company has decided that neither cash dividend nor stock dividend is to
be distributed, and not to convert capital reserve to share capital for the first half
of 2026.

3. Implementation of Equity Incentive Plan, Employee Stock Ownership Plan
and Other Employee Incentive Method
□Applicable Not Applicable
There was neither equity incentive plan or ESOP, nor other employee
incentive method during the reporting period.

4. Environmental Information Disclosure Status
Whether the listed company and its major subsidiaries are included in the list
of enterprises required to disclose environmental information in accordance
with the law.
Applicable □Not Applicable
Number of enterprises included in the accordance with the law
environmental information disclosure list (units)
1
Serial
Number
Company name
Environmental Information Disclosure Report
Index
1
Jiangling Motors
Corporation, Ltd.
1. National Pollutant Discharge Permit
Management Information Platform
Name
Position
Status
Date
Reason
Yong Wang
Independent
Director
Elected
2026.06.25 Re-election
Xue Linnan
Independent
Director
Elected
2026.06.25 Re-election
Luo Wenhua
Employee
Representative
Director
Elected
2026.06.25 Re-election
Chen
Jiangfeng
Independent
Director
End of term
of office
2026.06.25 End of term of office
Wang Yue
Independent
Director
End of term
of office
2026.06.25 End of term of office
Liu Niansheng
Employee
Representative
Director
End of term
of office
2026.06.25 End of term of office
Liu Senhai
VP
Employment 2026.04.01 Appointment due to work need
Wu Jiehong
Board Secretary Employment 2026.04.01 Appointment due to work need
Xu Lanfeng
VP & Board
Secretary
Dismissal
2026.03.31 Work rotation

22
https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/
xkgg!licenseInformation.action;
2. Nanchang Industrial Solid Waste Regulatory
Platform
http://117.40.240.237:10086/index.jsp.

5. Social responsibility
In the first half of 2026, JMC continued to empower rural revitalization,
deepening its "JMC Xiqiao Bridge Project" public welfare brand by donating
RMB 2 million to the China Foundation for Rural Development, specifically
designated for the construction of convenience bridges. This project was jointly
initiated by JMC and the China Foundation for Rural Development in 2007,
adhering to the mission of "Building Rural Bridges, Connecting the Path to
Revitalization" for nearly two decades. As of the end of June 2026, the company
has cumulatively invested over RMB 45.9 million, built 465 convenience bridges,
covering 25 provinces (autonomous regions and municipalities directly under
the central government) and 132 counties, benefiting more than 700,000 people
in underdeveloped areas. These efforts have effectively addressed local
transportation difficulties and contributed JMC's strength to the comprehensive
revitalization of rural areas.


23
Chapter V Major Events
1. Commitments by actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue yet
unfinished by the end of the reporting period
□Applicable Not Applicable
There is no commitment by actual controlling parties, shareholders, related
parties, acquirers and the Company finished in the reporting period or overdue
yet unfinished by the end of the reporting period.

2. Non-operating funding in the Company occupied by controlling shareholder
and its affiliates
□Applicable Not Applicable
There was no non-operating funding in the Company occupied by controlling
shareholder and its affiliates.

3. Illegal external guarantee
□Applicable Not Applicable
The Company had no illegal external guarantee during the reporting period.

4. Appointment or Dismissal of Accounting Firm
Whether the 2026 half-year report is audited?
□Yes
No
JMC 2026 half-year report is not audited.

5. Explanation of the Board of Directors to abnormal opinions from accounting
firm for the reporting period
□Applicable Not Applicable

6. Explanation of the Board of Directors to abnormal opinions from accounting
firm in 2025 report
□Applicable Not Applicable

7. Related Matters regarding Bankruptcy
□Applicable Not Applicable
There was no matter involving bankruptcy during the reporting period.

8. Litigation or arbitration
Major Litigation or Arbitration
□Applicable Not Applicable
There was no major litigation or arbitration during the reporting period.

Other litigation
□Applicable Not Applicable




24
9. Punishment
□Applicable Not Applicable

10. Good-faith status of JMC and its controlling shareholder or actual
controlling party
□Applicable Not Applicable

11. Major related transactions
I. Routine related party transactions
Applicable □Not Applicable
Please refer to the note 8 “Related party Transactions” to the financial
statements in the Chapter VIII Financial Statements for details.

Index of the announcement on forecast of the routine related party Transactions:
Name
Disclosure Date Website for
Disclosure
Public Announcement on Forecast of the
Routine Related Party Transactions in 2026
2025.12.23
www.cninfo.com.cn.

II. Major related party transaction concerning transfer of assets or equity
□Applicable Not Applicable
There was no major related party transaction concerning transfer of assets or
equity in the reporting period.

III. Related party transaction concerning joint external investment
□Applicable Not Applicable
There was no joint external investment during the reporting period.

IV. Related credit and debt
Applicable □Not Applicable
Is there non-operating related credit and debt?
□Yes No
The Company had no non-operating related credit and debt in the reporting
period.

V. Transaction with related financial companies or financial companies that
the company holds
Applicable □Not Applicable
Deposit business
Related
party
The related
relationship
Maximum
daily deposit
limit
Deposit rate
Balance at
the
beginning of
the
period(RMB
thousands)
Current amount
Balance at
the end of
the period
(RMB
thousands)
Deposit
amount
(RMB
thousands)
Take out the
amount
(RMB
thousands)
JMCG
Finance
Company
Wholly-owned
Subsidiary of
JMCG
*
0.85%-1.4%
1,592,490
6,302,540
6,542,550
1,352,480
* Note: JMC applies the consolidated deposit limit in JMCG Finance Company
at the end of each month to the lower of the following: 1) 25% of JMCG Finance

25
Company absorbed deposit in prior year end; or 2) 12% of JMC’s consolidated
total cash reserve.

Loan business
Related
party
The related
relationship
loan limit
(RMB
thousands)
Loan
rate
range
Balance at
the
beginning
of the
period
(RMB
thousands)
Current amount
Balance at
the end of
the period
(RMB
thousands)
Loan
amount
(RMB
thousands)
Repayment
amount
(RMB
thousands)
JMCG
Finance
Company
Wholly-
owned
Subsidiary of
JMCG
1,300,000
0%
0
0
0
0

Granting credit or other financial business
Related party
The related
relationship
Type of business
Total (RMB
thousands)
Actual amount
(RMB thousands)
JMCG Finance
Company
Wholly-owned
Subsidiary of JMCG
Granting credit
1,300,000
0

VI. The transactions between the financial company controlled by the
company and its related parties
□Applicable Not Applicable
The Company has no controlling financial company.

VII. Other major related party transactions
□Applicable Not Applicable
The Company has no other major related party transaction in the reporting
period.

12. Major Contracts and Execution
(1) Entrustment, contract or lease
a. Entrustment
□Applicable Not Applicable
There was no entrustment in the reporting period.

b. Contract
□Applicable Not Applicable
There was no contract in the reporting period.

c. Lease
Applicable □Not Applicable
Please refer to the Note 5 (12), note 5 (14), note 5 (31), note 5 (62) and note 8
(5) (b) of the financial statements in the Chapter VIII Financial Statements for
details.

Project of which the profit and loss brought for the company reaches more
than 10% of the total profit of the company during the reporting period
□Applicable Not Applicable

26
There was no leasing project of which the profit and loss brought for the
Company reached more than 10% of the total profit of the Company during
the reporting period.

II. Major guarantee
□Applicable Not Applicable
The Company had no external guarantee in the reporting period.

III. Entrusted financial management
□Applicable Not Applicable
There was no entrusted financial management in the reporting period.

IV. Other Major Contracts
□Applicable Not Applicable
There was no other major contract in the reporting period.

13. External Research, Communication, and Media Interview to the Company
Applicable □Not Applicable
Date
Communication
Method
Type of
Object
Information Discussed
and Materials offered
April 16,
2026
Online
communication
on the internet
platform
Individual
investor
JMC Operating
highlights
May 15,
2026
Online
communication
on the internet
platform
Individual
investor
JMC Operating
highlights

14. Other major events
□Applicable Not Applicable
There was no other major event in the reporting period.

15. Major event of JMC subsidiary
□Applicable Not Applicable



27
Chapter VI Share Capital Changes & Shareholders
1. Changes of shareholding structure
I. Table of the changes of shareholding structure

Before the change
Change (+, -)
After the change

Shares
Proportion
of total
shares (%)
New
shares
Bonus
Shares
Reserve-
converted
shares
Others
Sub-
total
Shares
Proportion
of total
shares (%)
I. Limited tradable
A shares
750,840
0.09%





750,840
0.09%
1. Other domestic
shares
750,840
0.09%





750,840
0.09%
Including:









Domestic legal
person shares
745,140
0.09%





745,140
0.09%
Domestic natural
person shares
5,700
0.00%





5,700
0.00%
II. Unlimited
tradable shares
862,463,160
99.91%





862,463,160
99.91%
1. A shares
518,463,160
60.06%





518,463,160
60.06%
2. B shares
344,000,000
39.85%





344,000,000
39.85%
III. Total
863,214,000
100.00%





863,214,000
100.00%

Causes of shareholding changes
□Applicable Not Applicable

Approval of changes of shareholding structure
□Applicable Not Applicable

Shares Transfer
□Applicable Not Applicable

Progress in the implementation of share repurchase
□Applicable Not Applicable

The implementation progress of reducing the buyback shares by means of
centralized bidding
□Applicable Not Applicable

Impact on accounting data, such as the latest EPS, diluted EPS,
shareholders’ equity attributable to the equity holders of the Company,
generated from shares transfer
□Applicable Not Applicable
Others to be disclosed necessarily or per the requirements of securities
regulator
□Applicable Not Applicable

II. Changes of limited A shares
□Applicable Not Applicable

2. Securities issuance and listing
□Applicable Not Applicable


28
3. Shareholders and shareholding status
Total shareholders (as of
June 30, 2026)
JMC had 34,931 shareholders, including 29,239 A-shareholders, and 5,692 B-shareholders.
Shareholding status of shareholders holding more than 5% of shares or the top 10 shareholders (excluding shares lent
through securities lending)
Shareholder Name
Shareholder
Type
Shareholding
Percentage
(%)
Shares at
the End of
Year
Change (+,-)
Shares with
Trading
Restriction
Shares
due to
mortgage
or mark or
frozen
Nanchang Jiangling
Investment Co., Ltd.
State-owned
legal person
41.03%
354,176,000
0
0
0
Ford Motor Company
Foreign legal
person
32.00%
276,228,394
0
0
0
Hong Kong Securities
Clearing Company Ltd.
(HKSCC)
Foreign legal
person
1.15%
9,934,770
414,101
0
0
Industrial and
Commercial Bank of
China Limited - Guolian
Superior Industry Mixed
Securities Investment
Fund
Domestic non-
State-owned
legal persons
0.73%
6,288,001
1,259,900
0
0
Jin Xin
Domestic natural
person
0.59%
5,121,500
-206,400
0
0
China Merchants Fund
Management Co., Ltd. -
Social Security Fund
Portfolio 1903
Domestic non-
State-owned
legal persons
0.33%
2,839,600
2,839,600
0
0
CITIC Securities Co.,
Ltd. – Invesco Great
Wall CSI Shanghai-
Hong Kong-Shenzhen
Dividend Growth Low
Volatility Index
Securities Investment
Fund
Domestic non-
State-owned
legal persons
0.30%
2,632,600
2,632,600
0
0
Li Yifeng
Domestic natural
person
0.21%
1,850,000
343,500
0
0
Xingyin Wealth
Management Co., Ltd. -
Xingyin Wealth
Management Fuli
Xingcheng Alpha 3-
Month Holding Period
No. 3 Mixed Wealth
Management Product
Domestic non-
State-owned
legal persons
0.18%
1,550,548
1,272,906
0
0
Li Guilin
Domestic natural
person
0.16%
1,400,545
20,200
0
0
Notes on association among above-mentioned
shareholders
Shareholders holding more than 5% are not related.
Description of the above shareholders' entrusted /
entrusted voting rights and waived voting rights
None.
A special description of the special repurchase
account among the top 10 shareholders
JMC Share Repurchase Special Securities Account holds
8,632,078 A shares of the Company, representing 1% of the total
outstanding shares of the Company.
Top ten shareholders holding unlimited tradable shares
Shareholder Name
Shares without Trading Restriction
Share Type
Nanchang Jiangling Investment Co., Ltd.
354,176,000
A share

29
Ford Motor Company
276,228,394
B share
Hong Kong Securities Clearing Company Ltd. (HKSCC)
9,934,770
A share
Industrial and Commercial Bank of China Limited - Guolian
Superior Industry Mixed Securities Investment Fund
6,288,001
A share
Jin Xin
5,121,500
B share
China Merchants Fund Management Co., Ltd. - Social Security
Fund Portfolio 1903
2,839,600
A share
CITIC Securities Co., Ltd. – Invesco Great Wall CSI Shanghai-
Hong Kong-Shenzhen Dividend Growth Low Volatility Index
Securities Investment Fund
2,632,600
A share
Li Yifeng
1,850,000
B share
Xingyin Wealth Management Co., Ltd. - Xingyin Wealth
Management Fuli Xingcheng Alpha 3-Month Holding Period No. 3
Mixed Wealth Management Product
1,550,548
A share
Li Guilin
1,400,545
A share
Explanation of the association or concerted
action between the top 10 unlimited tradable
shareholders, and between the top 10
unlimited tradable shareholders and the top
10 shareholders
Shareholders holding more than 5% are not related.
Participation of Shareholders holding more than 5% of shares, top 10
shareholders and top 10 shareholders with unlimited shares in the lending of
shares in the refinancing business
□Applicable Not Applicable

Change in the top 10 shareholders of the Company and the top 10 shareholders
with unlimited shares from the previous period due to lending/repatriation of
refinancing business
□Applicable Not Applicable

Stock buy-back by top ten shareholders or top ten shareholders holding
unlimited tradable shares in the reporting period
□Applicable Not Applicable
The top 10 common shareholders of the Company and the top 10 common
shareholders with unlimited conditions of sale did not conduct agreed
repurchase transactions during the reporting period.

4. Changes of shares held by Directors, Supervisors and senior management
□Applicable Not Applicable
There was no change of shares held by Directors and senior management in
the reporting period. Please refer to 2025 annual report for details.

5. Change of controlling shareholders or actual controlling parties
The company has previously disclosed that the actual controller is planning a
change in control that has not yet been completed please explain the current
progress of the change in control.
□Applicable Not Applicable
Change of controlling shareholders
□Applicable Not Applicable
There was no change of controlling shareholders during the reporting period.

Change of actual controlling parties
□Applicable Not Applicable

30
There was no change of actual controlling parties during the reporting period.

6. Preferred Shares
□Applicable Not Applicable
JMC had no preferred shares in the reporting period.



31
Chapter VII Bond related Information
□Applicable Not Applicable





32

JIANGLING MOTORS CORPORATION, LTD.

FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2026

[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]





















33
JIANGLING MOTORS CORPORATION, LTD.


CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 June 2026


(All amounts in RMB Yuan unless otherwise stated)






ASSETS
Notes
30 June 2026
Consolidated*
31 December
2025
Consolidated
30 June 2026
Company*
31 December
2025
Company






Current assets





Cash and cash equivalents
5(1)
12,171,980,445
13,582,540,346
10,884,645,288
10,966,453,363
Financial assets held for trading
5(2)
801,738,192
801,902,466
-
-
Notes receivable

-
-
-
1,500,000,000
Accounts receivable
5(3)、14(1)
6,318,608,512
6,141,405,767
6,584,740,492
6,264,582,609
Financing receivables
5(4)
48,495,341
205,851,591
14,248,635
150,902,273
Advances to suppliers
5(5)
143,467,706
98,624,060
143,467,706
98,624,060
Other receivables
5(6)、14(2)
28,374,836
134,768,377
26,873,762
134,906,584
Inventories
5(7)
2,115,057,030
2,011,925,708
2,111,610,476
2,008,282,424
Current portion of non-current assets
5(9)
30,563,429
27,153,632
-
1,631,907
Other current assets
5(8)
1,209,190,698
1,194,944,928
1,032,122,553
956,607,104
Total current assets

22,867,476,189
24,199,116,875
20,797,708,912
22,081,990,324






Non-current assets





Long-term receivables
5(10)
74,960,888
71,519,964
-
-
Long-term equity investments
5(11)、14(3)
175,003,168
203,641,921
625,657,098
654,295,851
Fixed assets
5(12)
5,486,106,001
5,789,423,822
4,756,917,835
5,065,812,739
Construction in progress
5(13)
549,633,231
507,614,873
449,017,979
333,295,118
Right-of-use assets
5(14)
80,664,967
120,243,307
79,397,904
118,037,006
Intangible assets
5(15)
1,609,163,337
1,790,269,138
1,406,849,797
1,584,170,614
Development expenditures
5(16)
27,873,802
57,594,483
27,873,802
57,594,483
Goodwill
5(19)
-
-
-
-
Deferred tax assets
5(17)
1,001,922,775
980,954,002
-
-
Other non-current assets
5(18)
3,438,898
4,912,712
3,438,899
4,912,712
Total non-current assets

9,008,767,067
9,526,174,222
7,349,153,314
7,818,118,523






TOTAL ASSETS

31,876,243,256
33,725,291,097
28,146,862,226
29,900,108,847






* Unaudited financial indexes

34
JIANGLING MOTORS CORPORATION, LTD.


CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 June 2026


(All amounts in RMB Yuan unless otherwise stated)





LIABILITIES AND EQUITY
Notes
30 June 2026
Consolidated*
31 December
2025
Consolidated
30 June 2026
Company*
31 December
2025
Company






Current liabilities





Short-term borrowings
5(20)
350,000,000
1,950,000,000
-
1,500,000,000
Derivative financial liabilities
5(21)
3,517,243
695,349
3,517,243
695,349
Notes payable
5(22)
338,413,385
427,292,904
338,413,385
427,292,904
Accounts payable
5(23)
11,059,636,157
11,397,760,484
11,056,352,768
11,393,769,153
Contract liabilities
5(24)
510,991,920
545,864,754
1,142,836,762
1,315,151,000
Employee benefits payable
5(25)
552,470,058
729,156,434
504,402,775
646,304,675
Taxes payable
5(26)
106,072,832
132,698,441
94,618,848
121,268,279
Other payables
5(27)
5,887,712,956
5,803,694,871
2,418,627,609
2,231,605,558
Current portion of non-current
liabilities
5(28)
25,477,356
91,863,024
23,563,131
89,799,585
Other current liabilities
5(29)
315,358,044
304,431,406
178,562,910
183,977,806
Total current liabilities

19,149,649,951
21,383,457,667
15,760,895,431
17,909,864,309






Non-current liabilities





Long-term borrowings
5(30)
223,004
460,276
223,004
460,276
Lease liabilities
5(31)
33,555,476
44,860,116
33,378,710
43,797,509
Provisions
5(32)
265,759,555
255,436,677
5,288,651
5,561,579
Deferred income
5(33)
20,587,336
13,406,177
20,233,836
13,039,843
Long-term employee benefits
payable
5(34)
48,158,339
49,853,000
47,979,339
49,674,000
Deferred tax liabilities
5(17)
189,302,556
123,918,738
171,473,784
105,804,342
Other non-current liabilities
5(35)
511,013,459
461,860,038
-
-
Total non-current liabilities

1,068,599,725
949,795,022
278,577,324
218,337,549






Total liabilities

20,218,249,676
22,333,252,689
16,039,472,755
18,128,201,858






Equity





Share capital
5(36)
863,214,000
863,214,000
863,214,000
863,214,000
Capital surplus
5(37)
839,442,490
839,442,490
839,442,490
839,442,490
Less:Treasury shares
5(38)
170,214,887
170,214,887
170,214,887
170,214,887
Other comprehensive income
5(39)
(23,862,000)
(23,862,000)
(24,258,000)
(24,258,000)
Special reserve
5(40)
7,501,005
7,860,966
5,423,384
5,783,345
Surplus reserve
5(41)
431,607,000
431,607,000
431,607,000
431,607,000
Retained earnings
5(42)
10,016,007,701
9,752,190,648
10,162,175,484
9,826,333,041
Total equity attributable to
shareholders of the Company

11,963,695,309
11,700,238,217
12,107,389,471
11,771,906,989
Minority interests

(305,701,729)
(308,199,809)
-
-
Total equity

11,657,993,580
11,392,038,408
12,107,389,471
11,771,906,989






TOTAL LIABILITIES AND EQUITY

31,876,243,256
33,725,291,097
28,146,862,226
29,900,108,847

* Unaudited financial indexes
Legal representative: Qiu Tiangao
CFO: Weihua Li
Finance Department: JiangNan


35
JIANGLING MOTORS CORPORATION, LTD.


CONSOLIDATED AND COMPANY INCOME STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026


(All amounts in RMB Yuan unless otherwise stated)





Item
Notes
2026 First Half-
year
Consolidated*
2025 First Half-
year
Consolidated*
2026 First Half-
year
Company*
2025 First Half-
year
Company*






Revenue
5(43)、14(4)
19,361,867,251
18,092,386,210
18,570,906,713
17,406,169,505
Less:
Cost of sales
5(43)、14(4)
(17,006,947,505)
(15,539,656,822)
(16,450,734,868)
(15,239,926,676)

Taxes and surcharges
5(44)
(484,992,704)
(542,573,504)
(474,618,966)
(532,041,500)

Selling and distribution expenses
5(45)
(391,175,890)
(466,792,493)
(73,852,661)
(79,713,765)

General and administrative expenses
5(46)
(411,224,874)
(460,681,221)
(403,928,385)
(426,432,074)

Research and development expenses
5(47)
(625,261,173)
(652,925,801)
(625,261,173)
(652,925,801)

Financial expenses
5(48)
44,583,409
55,376,687
39,061,247
46,578,703

Including: Interest expenses

(4,122,958)
(8,006,883)
(2,692,925)
(3,904,430)

Interest income

41,542,231
74,461,188
34,573,756
61,200,769
Add:
Other income
5(51)
353,221,017
321,265,671
345,086,695
316,023,140

Investment income
5(52)、14(5)
(254,145)
679,581
(1,178,773)
(594,717)

Including: Share of loss of associates and
joint ventures

(2,013,354)
(9,803,325)
(2,013,354)
(9,803,325)

Gains on changes in fair value
5(53)
1,608,894
(7,003,758)
(3,900,257)
(7,182,998)

Credit impairment losses
5(50)
(772,026)
(2,295,627)
687,094
(2,973,269)

Asset impairment losses
5(49)
(9,532,170)
42,736
258,829
42,736

Gains on disposal of assets
5(54)
2,793,321
18,372,675
3,366,936
18,587,389







Operating profit

833,913,405
816,194,334
925,892,431
845,610,673
Add:
Non-operating income
5(55)
1,911,499
1,697,188
893,096
926,403
Less:
Non-operating expenses
5(56)
(4,129,007)
(206,747)
(4,128,847)
(202,738)







Total profit

831,695,897
817,684,775
922,656,680
846,334,338
Less:
Income tax expenses
5(57)
(90,395,586)
(84,084,738)
(111,829,059)
(90,016,091)







Net profit

741,300,311
733,600,037
810,827,621
756,318,247

Classified by continuity of operations






Net profit from continuing operations

741,300,311
733,600,037
810,827,621
756,318,247

Net profit from discontinued operations

-
-
-
-








Classified by ownership of the equity






Minority interests

2,498,080
871,990
-
-

Attributable to shareholders of the
Company

738,802,231
732,728,047
810,827,621
756,318,247







Other comprehensive income, net of tax

-
-
-
-

Attributable to shareholders of the Company






Other comprehensive income items
which will not be reclassified to profit or
loss






Changes arising from remeasurement of
defined benefit plan
5(39)
-
-
-
-

Attributable to minority interests

-
-
-
-







Total comprehensive income

741,300,311
733,600,037
810,827,621
756,318,247

Attributable to shareholders of the
Company

738,802,231
732,728,047
810,827,621
756,318,247

Attributable to minority interests

2,498,080
871,990
-
-







Earnings per share






Basic earnings per share (RMB Yuan)
5(58)
0.86
0.85
——
——

Diluted earnings per share (RMB Yuan)
5(58)
0.86
0.85
——
——
* Unaudited financial indexes
Legal representative: Qiu Tiangao
CFO: Weihua Li
Finance Department: JiangNan

36
JIANGLING MOTORS CORPORATION, LTD.


CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026


(All amounts in RMB Yuan unless otherwise stated)



Item
Note
2026 First Half-
year
2025 First Half-
year
2026 First Half-
year
2025 First Half-
year
Consolidated*
Consolidated*
Company*
Company*
Cash flows generated from/(used in) operating activities





Cash received from sales of goods or rendering of
services

20,866,902,082
18,065,495,131
21,198,472,200
17,662,368,377
Cash received relating to other operating activities
5(59)
208,551,870
284,304,086
183,552,740
245,989,854
Sub-total of cash inflows

21,075,453,952
18,349,799,217
21,382,024,940
17,908,358,231
Cash paid for goods and services

(16,975,998,886)
(14,632,015,284)
(16,403,031,250)
(14,018,348,095)
Cash paid to and on behalf of employees

(1,528,477,991)
(1,489,737,422)
(1,470,080,507)
(1,380,952,099)
Payments of taxes and surcharges

(931,091,338)
(1,043,908,883)
(905,983,855)
(1,028,058,774)
Cash paid relating to other operating activities
5(59)
(1,041,992,016)
(1,248,635,412)
(754,723,646)
(721,703,374)
Sub-total of cash outflows

(20,477,560,231)
(18,414,297,001)
(19,533,819,258)
(17,149,062,342)
Net cash flows generated from/(used in) operating
activities
5(60)
597,893,721
(64,497,784)
1,848,205,682
759,295,889






Cash flows used in investing activities





Cash received from disposal on investments

1,629,010,300
55,000,000
32,660,300
3,400,000
Cash received from returns of investments

5,212,055
264,648
-
-
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets

132,649,520
39,374,129
120,244,916
37,584,825
Cash received relating to other investing activities
5(59)
68,574,336
86,306,501
60,068,686
62,942,334
Sub-total of cash inflows

1,835,446,211
180,945,278
212,973,902
103,927,159
Cash paid to acquire fixed assets intangible assets and
other long-term assets

(598,509,374)
(555,808,114)
(601,551,489)
(548,027,823)
Cash paid to acquire investments

(1,600,000,000)
(55,000,000)
-
(92,750,000)
Cash paid relating to other investing activities

(251,686)
(202,957)
(251,686)
(202,957)
Sub-total of cash outflows

(2,198,761,060)
(611,011,071)
(601,803,175)
(640,980,780)
Net cash flows used in investing activities

(363,314,849)
(430,065,793)
(388,829,273)
(537,053,621)






Cash flows generated from/(used in) financing activities





Cash received from borrowings

1,847,927,333
2,933,325,556
1,499,313,333
2,448,764,444
Sub-total of cash inflows

1,847,927,333
2,933,325,556
1,499,313,333
2,448,764,444
Cash repayments of borrowings

(3,450,223,818)
(2,950,240,906)
(3,000,223,818)
(2,950,240,906)
Cash payments for distribution of dividends, profits or
interest expenses

(156,789)
(315,656)
(156,789)
(315,656)
Cash paid relating to other financing activities
5(59)
(15,035,882)
(182,377,597)
(13,972,304)
(179,521,751)
Sub-total of cash outflows

(3,465,416,489)
(3,132,934,159)
(3,014,352,911)
(3,130,078,313)
Net cash flows generated from/(used in) financing
activities

(1,617,489,156)
(199,608,603)
(1,515,039,578)
(681,313,869)






Effect of foreign exchange rate changes on
cash and cash equivalents

-
-
-
-






Net decrease in cash and cash equivalents
5(60)
(1,382,910,284)
(694,172,180)
(55,663,169)
(459,071,601)
Add: Cash and cash equivalents at beginning of year
5(60)
13,491,154,200
12,475,176,009
10,879,242,183
9,214,091,023






Cash and cash equivalents at end of period
5(60)
12,108,243,916
11,781,003,829
10,823,579,014
8,755,019,422

* Unaudited financial indexes

Legal representative: Qiu Tiangao
CFO: Weihua Li
Finance Department: JiangNan

37


* Unaudited financial indexes

Legal representative: Qiu Tiangao
CFO: Weihua Li
Finance Department: JiangNan
JIANGLING MOTORS CORPORATION, LTD.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR SIX MONTHS ENDED 30 JUNE 2026


(All amounts in RMB Yuan unless otherwise stated)














Item
Note

Attributable to shareholders of the parent company
Minority
interests
Total equity

Share capital
Capital
surplus
Less:
Treasury
Stock
Other
comprehensive
income
Special
reserve
Surplus
reserve
Retained
earnings













Balance at 1 January 2025

863,214,000
839,442,490
-
(26,388,000)
5,371,093
431,607,000
9,179,333,271
(697,235,333)
10,595,344,521













Movements for six months ended 30 June 2025 *

-
-
168,909,971
-
(1,558,107)
-
118,119,679
871,990
(51,476,409)

Total comprehensive income











Net profit

-
-
-
-
-
-
732,728,047
871,990
733,600,037

Other comprehensive income

-
-
-
-
-
-
-
-
-

Total comprehensive income for the period

-
-
-
-
-
-
732,728,047
871,990
733,600,037

Capital contributed by owners and capital decreases











Share Repurchase

-
-
168,909,971
-
-
-
-
-
(168,909,971)

Profit distribution











Distribution to shareholders
5(42)
-
-
-
-
-
-
(614,608,368)
-
(614,608,368)

Special reserves











Withdrawal this period

-
-
-
-
10,109,653
-
-
-
10,109,653

Used this period

-
-
-
-
(11,667,760)
-
-
-
(11,667,760)













Balance at 30 June 2025 *

863,214,000
839,442,490
168,909,971
(26,388,000)
3,812,986
431,607,000
9,297,452,950
(696,363,343)
10,543,868,112













Balance at 1 January 2026

863,214,000
839,442,490
170,214,887
(23,862,000)
7,860,966
431,607,000
9,752,190,648
(308,199,809)
11,392,038,408













Movements for six months ended 30 June 2026 *

-
-
-
-
(359,961)
-
263,817,053
2,498,080
265,955,172

Total comprehensive income











Net profit

-
-
-
-
-
-
738,802,231
2,498,080
741,300,311

Other comprehensive income

-
-
-
-
-
-
-
-
-

Total comprehensive income for the period

-
-
-
-
-
-
738,802,231
2,498,080
741,300,311

Profit distribution











Distribution to shareholders
5(42)
-
-
-
-
-
-
(474,985,178)
-
(474,985,178)

Special reserve











Withdrawal this period

-
-
-
-
10,160,763
-
-
-
10,160,763

Used this period

-
-
-
-
(10,520,724)
-
-
-
(10,520,724)













Balance at 30 June 2026 *

863,214,000
839,442,490
170,214,887
(23,862,000)
7,501,005
431,607,000
10,016,007,701
(305,701,729)
11,657,993,580



38
JIANGLING MOTORS CORPORATION, LTD.


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR SIX MONTHS ENDED 30 JUNE 2026


(All amounts in RMB Yuan unless otherwise stated)





Item
Note
Share capital
Capital
surplus
Less:
Treasury
Stock
Other
comprehensive
income
Special reserve
Surplus
reserve
Retained earnings
Total equity





















Balance at 1 January 2025

863,214,000
839,442,490
-
(26,738,000)
5,147,194
431,607,000
10,046,868,559
12,159,541,243












Movements for six months ended 30 June 2025 *

-
-
168,909,971
-
(1,558,107)
-
141,709,879
(28,758,199)

Total comprehensive income










Net profit

-
-
-
-
-
-
756,318,247
756,318,247

Other comprehensive income

-
-
-
-
-
-
-
-

Total comprehensive income for the period

-
-
-
-
-
-
756,318,247
756,318,247

Capital contributed by owners and capital
decreases










Share Repurchase

-
-
168,909,971
-
-
-
-
(168,909,971)

Profit distribution










Distribution to shareholders
5(42)
-
-
-
-
-
-
(614,608,368)
(614,608,368)

Special reserve










Withdrawal this period

-
-
-
-
10,109,653
-
-
10,109,653

Used this period

-
-
-
-
(11,667,760)
-
-
(11,667,760)












Balance at 30 June 2025 *

863,214,000
839,442,490
168,909,971
(26,738,000)
3,589,087
431,607,000
10,188,578,438
12,130,783,044












Balance at 1 January 2026

863,214,000
839,442,490
170,214,887
(24,258,000)
5,783,345
431,607,000
9,826,333,041
11,771,906,989












Movements for six months ended 30 June 2026 *

-
-
-
-
(359,961)
-
335,842,443
335,482,482

Total comprehensive income










Net profit

-
-
-
-
-
-
810,827,621
810,827,621

Other comprehensive income

-
-
-
-
-
-
-
-

Total comprehensive income for the period

-
-
-
-
-
-
810,827,621
810,827,621

Profit distribution










Distribution to shareholders
5(42)
-
-
-
-
-
-
(474,985,178)
(474,985,178)

Special reserve










Withdrawal this period

-
-
-
-
10,160,763
-
-
10,160,763

Used this period

-
-
-
-
(10,520,724)
-
-
(10,520,724)












Balance at 30 June 2026 *

863,214,000
839,442,490
170,214,887
(24,258,000)
5,423,384
431,607,000
10,162,175,484
12,107,389,471


* Unaudited financial indexes

Legal representative: Qiu Tiangao
CFO: Weihua Li
Finance Department: JiangNan

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

39
1
General information



Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock
enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang
Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi Motors
Manufacturing Factory on 16 June 1992. The address of its headquarters is Nanchang City,
Jiangxi Province of the People’s Republic of China (“the PRC”).



On 23 July 1993, with the approval of the China Securities Regulatory Commission
(hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi [1993]
No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1 December 1993,
issuing 494,000,000 shares in total. On 8 April 1994, a total of 25,214,000 shares were
distributed for the 1993 dividend distribution programme with the approval of the
shareholders’ meeting and Jiangxi Securities Management Leading Group (Gan Securities
[1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi [1995] No. 144) and
the Shenzhen Securities Management Office (Shenzhen Zheng Ban Fu [1995] No. 92), the
Company issued 174,000,000 ordinary shares (“B shares”). In 1998, with the approval of
CSRC (Zheng Jian Guo Zi [1998] No. 19), the Company issued additional 170,000,000 B
shares.



According to the resolution of the shareholders’ meeting regarding the split share structure
reform on 11 January 2006, the Company implemented the Scheme on Split Share
Structure Reform on 13 February 2006. After the implementation, the Company’s total paid-
in capital remains the same. Related details are disclosed in Note 5(36).



As at 30 June 2026, the Company’s paid-in capital totalled RMB863,214,000, with par value
of RMB1 per share.



The actual principal business scope of the Company and its subsidiaries (hereinafter “the
Group”) includes production and sales of automobile assemblies such as automobiles,
special (modified) vehicles, engines and chassis and other automobile parts, and provision
of related after-sales services; import and export of automobiles and parts; dealership of
used cars; provision of enterprise management and consulting services related to
production, sales and rent of automobiles.




These financial statements were authorised for issue by the Company's Board of Directors
on 21 August 2026.


2
Basis of preparation of the financial statement


(1)
Basis of preparation



The financial statements are prepared in accordance with the Accounting Standard for
Business Enterprises - Basic Standard, specific accounting standards and relevant
regulations and in subsequent periods (hereinafter collectively referred to as “the
Accounting Standards for Business Enterprises” or “CASs”) and the disclosure
requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by
CSRC.


(2)
Going concern



These financial statements have been prepared on a going concern basis.








JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

40
3
Summary of significant accounting policies and accounting estimates



The Group determines specific accounting policies and estimates based on the features of
its production and operation, which mainly comprise the measurement of expected credit
losses on receivables, valuation of inventories, Inventory write-down provision, depreciation
of fixed assets and amortisation of intangible assets and right-of-use assets, criteria for
capitalisation of development expenditures, impairment of long-term assets, recognition
and measurement of revenue, and government grants etc.


(1)
Statement of compliance with the Accounting Standards for Business Enterprises



The financial statements of the Company for six months ended 30 June 2026 are in
compliance with the Accounting Standards for Business Enterprises, and truly and
completely present the consolidated and company’s financial position of the Company as
at 30 June 2026 and their financial performance, cash flows and other information for the
period then ended.


(2)
Accounting year



The Group's accounting year is a calendar year, i.e. from 1 January to 31 December each
year.


(3)
Functional currency



The base currency of the Company and its subsidiaries and the currency used in the
preparation of these financial statements are RMB. Unless otherwise specified, they are
expressed in RMB.

(4)
The determination method and selection basis of the material standard followed by financial
statement disclosure



Significant recovery or reversal of
allowance for doubtful accounts
receivable

The amount of a single recovery or reversal
exceeds 1% of the total amount of various
receivables and is greater than RMB15 million.

Significant prepayments with an
aging of over 1 year

The amount of a single prepayment exceeds 10%
of the total amount of various prepayments and is
greater than RMB15 million.

Significant construction in progress

The budget of a single project exceeds RMB 50
million.

Significant
non-wholly
owned
subsidiaries

The net assets of the subsidiary account for more
than 5% of the group’s net assets, or its net profit
impact reaches 10% or more of the group’s
consolidated net profit.

Significant associated companies

The carrying value of long-term equity investment
in a single investee exceeds 5% of the group’s
net assets or is greater than RMB100 million, or
the investment income/loss under the equity
method accounts for 10% or more of the group’s
consolidated net profit.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

41
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(5)
Preparation of consolidated financial statements



The scope of consolidation of the consolidated financial statements is determined on a
control basis, including the financial statements of the Company and all of its subsidiaries.
"Subsidiary" refers to the entity controlled by the Company (including the divisible part of
the enterprise and the investee, as well as the structured entity controlled by the Company,
etc.). An investor can control an investee if and only if the investor has the following three
elements: the investor has authority over the investee; Variable returns for participation in
the investee's related activities; Ability to use power over the investee to influence the
amount of its return.



If the accounting policies or accounting periods adopted by the subsidiary are inconsistent
with those adopted by the Company, the financial statements of the subsidiary shall be
adjusted as necessary in accordance with the accounting policies and accounting periods
of the Company when preparing the consolidated financial statements. The assets,
liabilities, equity, revenues, expenses and cash flows arising from all transactions between
companies within the Group are fully offset at the time of the consolidation.



If the current loss shared by the minority shareholders of the subsidiary exceeds the share
of the minority shareholders in the shareholders' equity at the beginning of the period, the
balance shall still be offset against the minority shareholders' equity.



For subsidiaries acquired through a business combination not under common control, the
operating results and cash flows of the acquiree are included in the consolidated financial
statements from the date on which the Group acquires control until the termination of the
Group's control over them. In preparing the consolidated financial statements, the financial
statements of subsidiaries are adjusted on the basis of the fair value of the identifiable
assets, liabilities and contingent liabilities determined at the date of acquisition.



For subsidiaries acquired through a business combination under the same control, the
operating results and cash flows of the consolidated party are included in the consolidated
financial statements from the beginning of the current period of consolidation. When
compiling the comparative consolidated financial statements, the relevant items of the
previous financial statements are adjusted to be deemed to have existed since the ultimate
controller began to exercise control.



If changes in relevant facts and circumstances result in a change in one or more of the
control elements, the Group will reassess whether to control the investee.



Without loss of control, a change in minority shareholders' interests is treated as an equity
transaction.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

42

3
Summary of significant accounting policies and accounting estimates (Cont’d)


(6)
Cash and cash equivalents



Cash comprises the Group’s cash on hand and deposits that can be readily withdrawn on
demand. Cash equivalents are short-term, highly liquid investments that are readily
convertible into known amounts of cash, subject to an insignificant risk of changes in value.


(7)
Foreign currency translation



The Group translates foreign currency transactions into its functional currency.



At the time of initial recognition of a foreign currency transaction, the amount in the foreign
currency is converted into the base currency of account using the spot exchange rate on
the date of the transaction, but the capital invested by the investor in the foreign currency is
converted at the spot exchange rate on the date of the transaction. At the balance sheet
date, the spot exchange rate at the balance sheet date is used for foreign currency monetary
items. The resulting differences in settlement and translation of monetary items shall be
included in profit or loss for the current period, except for the differences arising from special
foreign currency borrowings related to the acquisition and construction of assets eligible for
capitalization, which shall be treated in accordance with the principle of capitalization of
borrowing costs. Foreign currency non-monetary items measured at historical cost are still
translated using the exchange rate used at the time of initial recognition, and the amount in
the base currency of accounting remains unchanged. Foreign currency non-monetary items
measured at fair value are translated at the spot exchange rate on the date of fair value
determination, and the resulting difference is recognized in profit or loss or other
comprehensive income for the current period according to the nature of the non-monetary
items.



Cash flows in foreign currencies are translated using the spot exchange rate on the date of
the cash flows. The effect of exchange rate changes on cash is presented separately in the
statement of cash flows as a reconciliation item.

(8)
Financial instruments



A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. A financial asset or a financial liability
is recognised when the Group becomes a party to the contractual provisions of the
instrument.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

43
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(8)
Financial instruments (Cont’d)


(a)
Recognition and derecognition of financial instruments



The Group recognises a financial asset or financial liability when it becomes a party to a
contract for a financial instrument.



If the following conditions are met, the financial assets (or part of the financial assets, or
part of a group of similar financial assets) shall be derecognized, that is, the previously
recognized financial assets shall be transferred out of the balance sheet:



(1)
Expiration
of
the
right
to
receive
cash
flows
from
financial
assets;
(2) transferred the right to receive cash flows from financial assets or assumed an obligation
under a "transfer agreement" to promptly pay the cash flows received in full to a third party;
and substantially transfers substantially all of the risks and rewards of ownership of a
financial asset, or, while substantially neither transferring nor retaining substantially all of
the risks and rewards of ownership of a financial asset, but relinquishes control of that
financial asset.


If the obligation for the financial liability has been fulfilled, cancelled or expired, the financial
liability is derecognized. If an existing financial liability is replaced by another financial
liability by the same creditor with substantially almost entirely different terms, or the terms
of the existing liability are substantially all modified, such replacement or modification is
treated as a derecognition of the original liability and recognition of a new liability, the
difference in profit or loss for the current period.



The purchase and sale of financial assets in the conventional way is recognized and
derecognized according to the accounting of the transaction date. The purchase or sale of
financial assets in a conventional manner means the purchase or sale of financial assets in
accordance with a contract that provides for the delivery of financial assets in accordance
with a schedule normally determined by regulations or market practice. A trading day is the
date on which the Group commits to buy or sell a financial asset.


(b)
Classification and measurement of financial assets



At the time of initial recognition, the Group's financial assets are classified according to the
Group's business model of managing financial assets and the contractual cash flow
characteristics of financial assets: financial assets measured at amortized cost, investments
in debt instruments measured at fair value through other comprehensive income, and
financial assets measured at fair value through profit or loss. All affected underlying financial
assets will be reclassified if and only when the Group changes its business model for
managing financial assets.



Financial assets are measured at fair value at the time of initial recognition, but if the
accounts receivable or notes receivable arising from the sale of goods or the provision of
services, etc., do not contain a material financing component or do not consider the
financing component of no more than one year, the initial measurement shall be carried out
according to the transaction price.



For financial assets measured at fair value through profit or loss, the relevant transaction
costs are directly recognized in the current profit or loss, and the transaction costs related
to other types of financial assets are included in the initial recognition amount.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

44
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(8)
Financial instruments (Cont’d)


(b)
Classification and measurement of financial assets (Cont’d)



The subsequent measurement of a financial asset depends on its classification:



Investments in debt instruments measured at amortized cost
If a financial asset meets the following conditions at the same time, it is classified as a
financial asset measured at amortized cost: the business model for managing the financial
asset is to collect contractual cash flows as the goal; The contractual terms of the financial
asset provide that the cash flows generated on a specific date are only payments of principal
and interest based on the amount of principal not paid. Interest income is recognized using
the effective interest rate method for such financial assets, and the gains or losses arising
from their derecognition, modification or impairment are included in profit or loss for the
current period.



Investments in debt instruments at fair value through other comprehensive income
A financial asset is classified as a financial asset measured at fair value through other
comprehensive income if it meets the following conditions: the Group's business model for
managing the financial asset is to collect both contractual cash flows and sell financial
assets; The contractual terms of the financial asset provide that the cash flows generated
on a specific date are only payments of principal and interest based on the amount of
principal not paid. Interest income is recognized for such financial assets using the effective
interest rate method. Except for interest income, impairment losses and foreign exchange
differences, which are recognized as gains or losses for the current period, the remaining
fair value changes are recognized as other comprehensive income. When a financial asset
is derecognized, the accumulated gains or losses previously included in other
comprehensive income are transferred out of other comprehensive income and included in
profit or loss for the current period.



Financial assets at fair value through profit or loss
The above-mentioned financial assets measured at amortized cost and financial assets
other than those measured at fair value through other comprehensive income are classified
as financial assets measured at fair value through profit or loss. For such financial assets,
fair value is used for subsequent measurement, and all changes in fair value are recognized
in profit or loss for the current period.


(c)
Classification and measurement of financial liabilities



At the time of initial recognition, the Group's financial liabilities are classified as follows:
financial liabilities at fair value through profit or loss, and financial liabilities at amortized
cost. For financial liabilities measured at fair value through profit or loss, the relevant
transaction expenses are directly recognized in the current profit or loss, and the relevant
transaction costs of the financial liabilities measured at amortized cost are included in their
initial recognition amount.



The subsequent measurement of financial liabilities depends on their classification:





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

45
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(8)
Financial instruments (Cont’d)


(c)
Classification and measurement of financial liabilities (Cont’d)



Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss, including trading financial
liabilities (including derivatives that are financial liabilities) and financial liabilities designated
at fair value through profit or loss at the time of initial recognition. Trading financial liabilities
(including derivatives that are financial liabilities) are subsequently measured at fair value,
and all changes in fair value are recognized in profit or loss for the current period, except in
relation to hedge accounting. For financial liabilities designated as measured at fair value
through profit or loss, subsequent measurement is carried out at fair value, and other fair
value changes are included in profit or loss for the current period, except for the fair value
changes caused by changes in the Group's own credit risk, which are included in other
comprehensive income. If the inclusion of changes in fair value caused by changes in the
Group's own credit risk into other comprehensive income would cause or magnify the
accounting mismatch in profit or loss, the Group will include all changes in fair value (including
the amount affected by changes in its own credit risk) in profit or loss for the current period.



Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is used, and the subsequent
measurement is carried out according to the amortized cost.


(d)
Impairment of financial instruments

Methods for determining expected credit losses and accounting treatment methods



The Group conducts impairment treatment and recognizes loss provisions for financial assets
measured at amortized cost, debt instrument investments measured at fair value with
changes recognized in other comprehensive income, and lease receivables based on
expected credit losses.



For receivables that do not contain significant financing components, the Group applies a
simplified measurement method to measure the loss provision based on the expected credit
loss amount equivalent to the entire duration of the receivable.



For lease receivables and receivables that contain significant financing components, the
Group has chosen to apply a simplified measurement approach, measuring the loss provision
based on the expected credit loss amount equivalent to the entire duration of the receivable.



Apart from the aforementioned simplified measurement methods for financial assets, the
Group assesses at each reporting date whether the credit risk has significantly increased
since initial recognition. If the credit risk has not significantly increased since initial
recognition, it is classified as Stage 1, and the Group measures the loss allowance at an
amount equal to the expected credit losses over the next 12 months, calculating interest
income based on the carrying amount and the effective interest rate. If the credit risk has
significantly increased since initial recognition but no credit impairment has occurred, it is
classified as Stage 2, and the Group measures the loss allowance at an amount equal to
the expected credit losses over the entire lifetime, calculating interest income based on the
carrying amount and the effective interest rate. If credit impairment occurs after initial
recognition, it is classified as Stage 3, and the Group measures the loss allowance at an
amount equal to the expected credit losses over the entire lifetime, calculating interest
income based on amortized cost and the effective interest rate. For financial instruments
that have only low credit risk at the reporting date, the Group assumes that the credit risk
has not significantly increased since initial recognition.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

46
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(8)
Financial instruments (Cont’d)


(d)
Impairment of financial instruments (Cont’d)


Summary of significant accounting policies and accounting estimates (Cont’d)

Financial instruments (Cont’d)

Impairment of financial instruments (Cont’d)

The Group's methodology for measuring expected credit losses on financial instruments
reflects factors such as the weighted average amount of unbiased probabilities determined by
evaluating a range of possible outcomes, the time value of money, and reasonable and
evidence-based information on past events, current conditions and projections of future
economic conditions that are available at the balance sheet date without unnecessary
additional cost or effort.



The credit risk characteristics of various types of financial assets for which the expected credit
losses are calculated separately are significantly different from those of other financial assets
in this category. When the information of expected credit losses cannot be assessed at a
reasonable cost for a single financial asset, the Group divides the receivables into several
portfolios based on the credit risk characteristics, calculates the expected credit losses on the
basis of the portfolio, and determines the basis and accrual method of the portfolio as follows:



Banker's Acceptance
Portfolio
State-owned banks and joint-stock banks

Commercial Acceptance
Bill Portfolio
Customers who purchase using commercial acceptance bills

The domestic general
vehicle sales mix
For domestic general automobile procurement customers, the
contractually agreed payment due date is used as the starting
point of overdue aging

Export general vehicle
sales mix
For export general automobile procurement customers, the
contractually agreed payment due date is used as the starting
point of overdue aging

New energy vehicle
sales mix
For new energy vehicle procurement customers, the
contractually agreed payment due date is used as the starting
point of overdue aging

Component sales mix
For parts procurement customers, the contractually agreed
payment due date is used as the starting point of overdue aging

Other receivables
combinations
Other receivables of the same nature


(e)
Financial Instrument Offset



If the following conditions are met at the same time, the financial assets and financial liabilities
are presented in the balance sheet as net amounts after offsetting each other: they have the
legal right to offset the recognized amount, and such legal right is currently enforceable; The
plan is to settle on a net basis, or at the same time to realise the financial asset and settle the
financial liability.



When the Group no longer reasonably expects to be able to recover all or part of the
contractual cash flows of financial assets, the Group directly writes down the carrying balance
of such financial assets.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

47
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(8)
Financial instruments (Cont’d)


(f)
Derivative financial instruments



The Group uses derivative financial instruments. Derivative financial instruments are initially
measured at the fair value on the date of the signing of the derivative transaction contract,
and subsequently measured at their fair value. A derivative financial instrument with a positive
fair value is recognized as an asset, and a negative fair value is recognized as a liability.



Except in relation to hedge accounting, gains or losses arising from changes in the fair value
of derivatives are directly recognized in profit or loss for the current period.


(g)
Transfer of financial assets



If the Group has transferred almost all of the risks and rewards in the ownership of financial
assets to the transferee, the recognition of such financial assets shall be terminated; Where
almost all of the risks and rewards in the ownership of financial assets are retained, the
recognition of the financial assets shall not be terminated.



If the Group neither transfers nor retains almost all of the risks and rewards in the ownership
of the financial assets, it shall be dealt with in the following cases: if it has relinquished control
of the financial assets, the financial assets shall be terminated and the assets and liabilities
arising therefrom shall be recognized; If the financial asset is not relinquished, the relevant
financial asset shall be recognized according to the extent to which it continues to be involved
in the transferred financial asset, and the relevant liabilities shall be recognized accordingly.

(9)
Inventories



Inventory
includes
raw
materials,
work-in-progress,
finished
products,
low-value
consumables, materials in transit and consignment materials.



Inventory is initially measured at cost. Inventory costs include procurement costs, processing
costs, and other costs. Inventories are issued, and their actual cost is determined using the
weighted average method. Low-value consumables are amortized using the one-time resale
method.



The inventory system adopts a perpetual inventory system.



At the balance sheet date, inventories are measured at the lower of cost and net realizable
value, and if the cost is higher than the net realizable value, a provision for inventory decline
is made and included in profit or loss for the current period. Net realizable value is the
estimated selling price of inventory in the ordinary course of business, less the estimated
costs to be incurred at completion, estimated selling expenses, and related taxes. Inventories
related to product lines manufactured and sold in the same region, with the same or similar
end use or purpose, and difficult to measure separately from other items, are provided for
inventory decline on a consolidated basis.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

48
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(10)
Long-term equity investments



Long-term equity investments comprise the Company’s long-term equity investments in its
subsidiaries, and the Group’s long-term equity investments in its associates.



Long-term equity investments are initially measured at the initial investment cost at the time
of acquisition. For a long-term equity investment obtained through a business combination
under the same control, the initial investment cost shall be the share of the carrying amount
of the owner's equity of the merged party in the consolidated financial statements of the
ultimate controlling party on the date of consolidation; The difference between the initial
investment cost and the carrying amount of the consolidation consideration shall be
adjusted to the capital reserve (if it is insufficient to offset the retained earnings). For long-
term equity investments obtained through a business combination not under common
control, the initial investment cost shall be the cost of the merger (if the business
combination of enterprises not under the same control is realized step by step through
multiple transactions, the sum of the carrying amount of the equity investment of the
acquiree held before the purchase date and the cost of the new investment on the purchase
date shall be the initial investment cost). For long-term equity investments obtained by
means other than those formed by business combinations, the initial investment costs shall
be determined in accordance with the following methods: if they are obtained by paying
cash, the initial investment costs shall be the purchase price actually paid and the expenses,
taxes and other necessary expenses directly related to the acquisition of the long-term
equity investment; If the issuance of equity securities is obtained, the fair value of the equity
securities issued shall be used as the initial investment cost.



The long-term equity investments that the Company is able to control the investee are
accounted for using the cost method in the Company's individual financial statements.
Control refers to having power over the investee, enjoying variable returns by participating
in the relevant activities of the investee, and having the ability to use the power over the
investee to influence the amount of returns.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

49
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(10)
Long-term equity investments (Cont’d)



When the cost method is used, long-term equity investments are valued at the initial
investment cost. If the investment is increased or recovered, the cost of long-term equity
investment shall be adjusted. The cash dividends or profits declared by the investee are
recognized as investment income for the current period.



If the Group has a significant influence on the investee, the long-term equity investment is
accounted for by the equity method. Significant influence refers to having the power to
participate in decision-making on the financial and operational policies of the investee, but
not being able to control or jointly control the formulation of these policies with other parties.



When the equity method is adopted, if the initial investment cost of a long-term equity
investment is greater than the fair value share of the investee's identifiable net assets at the
time of investment, it shall be included in the initial investment cost of the long-term equity
investment; If the initial investment cost of a long-term equity investment is less than the fair
value share of the investee's identifiable net assets at the time of investment, the difference
shall be included in the profit or loss for the current period, and the cost of the long-term
equity investment shall be adjusted at the same time.



When the equity method is adopted, after the long-term equity investment is obtained, the
investment profit and loss and other comprehensive income shall be recognized separately
and the book value of the long-term equity investment shall be adjusted according to the
share of the net profit or loss and other comprehensive income realized by the investee that
should be enjoyed or shared. When recognizing the share of the investee's net profit or loss,
the investee's net profit shall be recognized after adjustment based on the fair value of the
investee's identifiable assets at the time of acquisition of the investment, in accordance with
the Group's accounting policies and accounting periods, and offsetting the share attributable
to the investor in proportion to the internal transaction gains and losses incurred with
associates (except that if the internal transaction loss is an asset impairment loss, it shall
be recognized in full), and the net profit of the investee shall be recognized after adjustment,
except that the assets invested or sold constitute business. The carrying amount of the long-
term equity investment shall be reduced accordingly based on the profits or cash dividends
declared by the investee. The Group recognises that the net loss incurred by the investee
is limited to the carrying amount of the long-term equity investment and other long-term
equity that substantially constitutes a net investment in the investee to be written down to
zero, unless the Group has the obligation to bear additional losses. For other changes in
shareholders' equity of the investee other than net profit or loss, other comprehensive
income and profit distribution, the book value of long-term equity investment shall be
adjusted and included in shareholders' equity.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

50
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(11)
Fixed assets



Fixed assets are recognised only when the economic benefits associated with them are
likely to flow into the Group and their costs can be reliably measured. Subsequent expenses
related to fixed assets that meet the recognition conditions shall be included in the cost of
fixed assets, and the book value of the replaced part shall be derecognized; Otherwise, it
will be included in the current profit or loss or the cost of related assets according to the
beneficiary object when it occurs.



Fixed assets are initially measured at cost. The cost of acquiring a fixed asset includes the
purchase price, relevant taxes, and other expenses directly attributable to the asset incurred
before the fixed asset reaches its intended useable state.



The depreciation of fixed assets is calculated using the average life method, and the useful
life, estimated net residual value rate and annual depreciation rate of various types of fixed
assets are as follows:




Estimated useful lives
Estimated net
residual
values
Annual depreciation
rates






Buildings
35 to 40 years
4%
2.4% to 2.7%

Machinery and
equipment
10 to 15 years
4%
6.4% to 9.6%

Vehicles
5 to 10 years
4% to 20%
9.6% to 16%

Moulds
5 years
-
20%

Electronic and other
equipment
5 to 7 years
4%
13.7% to 19.2%



The estimated useful life and the estimated net residual value of a fixed asset and the
depreciation method applied to the asset are reviewed and adjusted as appropriate at each
year-end.


(12)
Construction in progress



Construction in progress is measured at actual cost. Actual cost comprises construction
costs, installation costs, borrowing costs that are eligible for capitalisation and other costs
necessary to bring the construction in progress ready for their intended use. Construction
in progress is transferred to fixed assets when the assets are ready for their intended use,
and depreciation is charged starting from the following month. The carrying amount of
construction in progress is reduced to the recoverable amount when the recoverable
amount is below the carrying amount (Note 3(15)).

The criteria for transferring construction in progress to fixed assets when they reach their
intended usable state are as follows:



Buildings

The earlier of completion acceptance or actual
commencement of use.

Machinery and equipment

The earlier of completion of installation and
acceptance or actual commencement of use.

Vehicles

The earlier of completion of installation and
acceptance or actual commencement of use.

Moulds

The earlier of completion of installation and
acceptance or actual commencement of use.

Electronic and other equipment

The earlier of completion of installation and
acceptance or actual commencement of use.


JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

51
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(13)
Borrowing costs



The borrowing costs that can be directly attributable to the acquisition, construction or
production of assets that meet the conditions for capitalization shall be capitalized, and other
borrowing costs shall be included in the profit or loss for the current period.



Borrowing costs are capitalized when capital expenditures and borrowing costs have been
incurred and the acquisition, construction or production activities necessary to bring the
asset to its intended usable or marketable condition have commenced.


When the acquisition, construction or production of assets eligible for capitalization reaches
the intended usable or saleable state, the borrowing costs shall cease to be capitalized.
Borrowing costs incurred thereafter are included in profit or loss for the current period.



During the capitalization period, the amount of interest capitalization in each accounting
period shall be determined according to the following method: the amount of special
borrowings shall be determined by deducting the interest income or investment income of
temporary deposits actually incurred in the current period; The general borrowings occupied
shall be calculated and determined on the basis of the weighted average of the accumulated
asset expenditures exceeding the portion of special borrowings multiplied by the weighted
average real interest rate of the general borrowings occupied.



In the process of acquisition, construction or production of assets eligible for capitalization,
if there is an abnormal interruption other than the procedures necessary to reach the
intended usable or saleable state, and the interruption period exceeds 3 consecutive
months, the capitalization of borrowing costs shall be suspended. Borrowing costs incurred
during the interruption period are recognized as expenses and are included in profit or loss
for the current period until the acquisition or construction of assets or production activities
resume.


(14)
Intangible assets


(a)
Useful life of intangible assets



Intangible assets are amortized using the straight-line method over their useful lives, and
their useful lives are as follows:



Estimated useful lives
Basis for determination


Land use rights
50 years
The term of the land use right
Software Usage Fees
5 years
Estimated period of use
Non-patented
technology
5-7 years
Estimated period of use combined
with the product life span




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

52
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(14)
Intangible assets (Cont’d)

(b)
Research and development



The Group's R&D expenditure mainly includes the materials used by the Group in carrying
out R&D activities, the remuneration of employees in the R&D department, the depreciation
and amortization of assets such as equipment and software used in R&D, R&D design
expenses and R&D testing.



The expenses in the planned investigation, evaluation and selection stages for the study of
the production process of automobile-related products are the expenses in the research
stage and are included in the profit or loss for the current period when incurred; Before
large-scale production, the expenditure in the design and testing stages related to the final
application of the production process of automobile-related products is the expenditure in
the development stage, and if the following conditions are met, it shall be capitalized:



The development of the production process of automobile-related products has been
fully demonstrated by the technical team;

The management has the intention to complete the development, use or sale of the
production process of automotive-related products;

The research and analysis of the preliminary market research shows that the products
produced by the production process of automobile-related products have the ability to
be marketed;

Sufficient technical and financial support for the development of production processes
for automotive-related products and subsequent large-scale production; and

Expenditures on the development of production processes for automotive-related
products can be reliably aggregated.



Expenses in the development stage that do not meet the above conditions shall be included
in the profit or loss for the current period when incurred. Development expenditures that have
been recognized in profit or loss in prior periods are not recognized as assets in subsequent
periods. Expenditures incurred in the development phase that have been capitalized are
shown on the balance sheet as development expenditures and are converted into intangible
assets from the date on which the project reaches its intended use.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

53
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(15)
Impairment of assets



The impairment of assets other than inventories, deferred income tax and financial assets
shall be determined according to the following methods: whether there are signs of possible
impairment of assets at the balance sheet date, and if there are signs of impairment, the
Group will estimate the recoverable amount and conduct impairment tests; Impairment tests
shall be carried out at least at the end of each year for goodwill formed as a result of
business combinations, intangible assets with indefinite useful lives and intangible assets
that have not yet reached a usable state, regardless of whether there is any indication of
impairment.



The recoverable amount is determined based on the higher of the fair value of the asset
less disposal costs and the present value of the asset's projected future cash flows. The
Group estimates its recoverable amount on a single asset basis; Where it is difficult to
estimate the recoverable amount of a single asset, the recoverable amount of the asset
group shall be determined on the basis of the asset group to which the asset belongs. The
determination of the asset group is based on whether the main cash inflow generated by
the asset group is independent of other assets or the cash inflow of the asset group.



When the recoverable amount of an asset or asset group is lower than its carrying amount,
the Group writes down its carrying amount to the recoverable amount, and the written down
amount is included in the profit or loss for the current period, and the corresponding asset
impairment provision is made.



For the impairment test of goodwill, the carrying amount of goodwill is allocated to the
relevant asset group or combination of asset groups in a reasonable manner from the date
of purchase. The relevant asset group or combination of asset groups is the asset group or
combination of asset groups that can benefit from the synergies of the business
combination, and is not larger than the operating segment determined by the Group.


Compare the carrying amount and recoverable amount of the asset group or asset group
combination containing goodwill, if the recoverable amount is lower than the book value,
the impairment loss amount shall first be offset against the carrying amount of the goodwill
allocated to the asset group or asset group combination, and then the carrying amount of
other assets shall be offset proportionally according to the proportion of the carrying amount
of other assets in the asset group or asset group portfolio except goodwill.



Once the above-mentioned asset impairment loss is recognized, it will not be reversed in
subsequent accounting periods.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

54
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(16)
Employee compensation



Employee remuneration refers to various forms of remuneration or compensation given by
the Group for the services provided by employees or for the termination of employment
relations, including short-term remuneration, post-employment benefits and severance
benefits.


(a)
Short-term compensation



Short-term remuneration includes wages, bonuses, allowances and subsidies, employee
welfare expenses, medical insurance premiums, work-related injury insurance premiums,
housing provident fund, trade union and education funds, short-term paid absences, etc.
During the accounting period in which employees provide services, the Group recognises
the actual short-term remuneration as a liability and includes it in the profit or loss for the
current period or the cost of related assets. Among them, non-monetary benefits are
measured at fair value.


(b)
Post-employment benefits




The Group classifies post-employment benefit plans into defined contribution plans and
defined benefit plans. A defined deposit and withdrawal plan is a post-employment benefit
plan in which the Group is no longer obligated to make further payments after depositing a
fixed fee into an independent fund; A defined benefit plan is a post-employment benefit plan
in addition to a defined contribution plan. During the reporting period, the basic endowment
insurance and unemployment insurance paid for employees were all part of the set deposit
plan. Supplemental retirement benefits for employees are defined benefit plans.


(i)
Defined contribution plans



Basic pensions




The Group’s employees participate in the basic pension plan set up and administered by
local authorities of Ministry of Human Resources and Social Security. Monthly payments of
premiums on the basic pensions are calculated according to the bases and percentage
prescribed by the relevant local authorities. When employees retire, the relevant local
authorities are obliged to pay the basic pensions to them. The amounts based on the above
calculations are recognised as liabilities in the accounting period in which the service has
been rendered by the employees, with a corresponding charge to the profit or loss for the
current period or the cost of relevant assets.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

55
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(16)
Employee compensation (Cont’d)


(ii)
Defined benefit plans



The Group also provides employees with supplementary retirement benefits in addition to
the insurance system prescribed by the State. Such supplementary retirement benefits
belong to defined benefit plans. The defined benefit liabilities recognised on the balance
sheet represent the present value of defined benefit obligations less the fair value of the plan
assets. The defined benefit obligations are calculated annually by an independent actuary
using projected unit credit method at the interest rate of treasury bonds with similar obligation
term and currency. Service costs related to supplementary retirement benefits (including
current service costs, historical service costs and settled gains or losses) and net interest
are recognised in profit or loss for the current period or the cost of related assets, and
changes arising from remeasurement of net liabilities or net assets of defined benefit plans
are recognised in other comprehensive income.


(c)
Termination benefits



The Group provides compensation for terminating the employment relationship with
employees before the end of the employment contracts or as an offer to encourage
employees to accept voluntary redundancy before the end of the employment contracts. The
Group recognises a liability arising from compensation for termination of the employment
relationship with employees, with a corresponding charge to profit or loss for the current
period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw
an employment termination plan or a curtailment proposal; 2) when the Group recognises
costs or expenses for a restructuring that involves the payment of termination benefits.



Internal retirement benefits



The Group provides internal retirement benefits to employees who have received internal
retirement arrangements. Internal retirement benefits refer to the wages paid and social
insurance premiums paid to employees who have not reached the retirement age prescribed
by the state and who have voluntarily quit their jobs with the approval of the Group's
management. The Group pays internal retirement benefits to employees from the date of
commencement of the internal retirement arrangement until the employees reach the normal
retirement age. For the internal retirement benefits, the Group will account for the retirement
benefits by comparison, and when the conditions for the recognition of the retirement
benefits are met, the wages and social insurance premiums to be paid by the employees
during the period from the date of cessation of the employee's services to the normal
retirement date will be recognized as liabilities and included in the profit or loss for the current
period in a lump sum. Changes in actuarial assumptions for retirement benefits and
differences caused by adjustments to benefit standards are recognized in profit or loss for
the current period when they occur.



Severance benefits expected to be paid within one year from the balance sheet date are
shown as remuneration payable to employees.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

56
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(17)
Provisions



Provisions for product warranties, compensation to suppliers, etc. are recognised when the
Group has a present obligation, it is probable that an outflow of economic benefits will be
required to settle the obligation, and the amount of the obligation can be measured reliably.



A provision is initially measured at the best estimate of the expenditure required to settle
the related present obligation. Factors on a contingency, such as the risks, uncertainties
and the time value of money, are taken into account as a whole in reaching the best estimate
of a provision. Where the effect of the time value of money is material, the best estimate is
determined by discounting the related future cash outflows. The increase in the discounted
amount of the provision arising from passage of time is recognised as interest expense.



The carrying amount of provisions is reviewed at each balance sheet date and adjusted to
reflect the current best estimate.



The provisions expected to be settled within one year since the balance sheet date are
classified as other current liabilities.

(18)
Revenue



The Group sells automobiles and automobile parts to distributors or end customers. In
addition, the Group also provides customers with auto maintenance and additional quality
warranty services. The Group recognises revenue at the amount of the consideration that
is entitled to be charged by the Group as expected when the customer obtains control over
relevant goods or services.



Where two or more obligations are included in a contract between the Group and the
customers, at the beginning date of the contract, the Group allocates the transaction price
to individual obligation in the relative proportion to the individual selling prices of products
or services committed in each individual obligation. When the individual selling price is
unobservable, the Group makes reasonable estimates on the individual selling price with
comprehensive consideration to all available information, and by using market adjustment
method, cost plus method, etc.


(a)
Sale of automobiles and automobile parts to distributors and end customers



The Group sells automobiles and automobile parts to distributors and end customers.
According to the contract, the delivery is completed after the products are delivered at the
contracted delivery location and acceptance by both parties. The Group recognises the
revenue at the timing of delivery completion.

The credit periods granted by the Group to distributors and end customers are generally
within one year, which is consistent with the industry practice, and there is no significant
financing component. The Group provides product warranties for automobiles and
automobile parts as required by laws and regulations and recognises the corresponding
provisions (Note 3(17)).

The Group provides distributors and end customers with sales discounts based on sales
volume, and related revenue is recognised at contract consideration net of the discount
amount estimated based on historical experience and using the expected value method.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

57
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(18)
Revenue (Cont’d)


(b)
Rendering of services



The Group provides customers with automobile transportation, automobile maintenance
and additional quality warranty services, and the revenue is recognised based on the
progress of service provision within a certain period. According to the nature of the service
provided, the performance progress is determined in accordance with the value of the labour
provided to the customer.



When the Group recognises revenue based on the stage of completion, the amount with
unconditional collection right obtained by the Group is recognised as accounts receivable,
and the rest is recognised as contract assets. Meanwhile, loss provision for accounts
receivable is recognised on the basis of ECL (Note 3(8)). If the contract price received or
receivable exceeds the amount for the completed service, the excess portion will be
recognised as contract liabilities. Contract assets and contract liabilities under the same
contract are presented on a net basis.


(19)
Government grants



Government subsidies are recognized when the conditions attached to them can be met and
can be received. If the government subsidy is a monetary asset, it shall be measured
according to the amount received or receivable. If the government subsidy is a non-monetary
asset, it shall be measured at fair value; If the fair value cannot be reliably obtained, it shall
be measured according to the nominal amount.



If the government documents stipulate that it is used for the acquisition, construction or other
formation of long-term assets, it shall be regarded as a government subsidy related to the
assets; If the government documents are not clear, the judgment shall be made on the basis
of the basic conditions that must be met to obtain the subsidy, and the basic condition of the
formation of long-term assets through acquisition, construction or other means shall be
regarded as the government subsidy related to the assets, and the other shall be regarded
as the government subsidy related to the income.



If the government subsidy related to the income is used to compensate for the relevant costs,
expenses or losses in subsequent periods, it shall be recognized as deferred income, and
shall be included in the profit or loss for the current period or offset the relevant costs in the
period in which the relevant costs, expenses or losses are recognized; If it is used to
compensate for the relevant costs, expenses or losses that have been incurred, it shall be
directly included in the profit or loss for the current period or offset the relevant costs.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

58
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(19)
Government grants (Cont’d)



Asset-related government subsidies to offset the carrying amount of the underlying assets;
or recognized as deferred income, which shall be included in profit or loss in instalments in
a reasonable and systematic manner during the useful life of the relevant asset (except that
the government subsidy measured according to the nominal amount shall be directly
included in the profit or loss for the current period), and if the relevant asset is sold,
transferred, scrapped or damaged before the end of its useful life, the balance of the relevant
deferred income that has not yet been distributed shall be transferred to the profit or loss of
the current period of asset disposal.



If the finance department allocates the subsidized funds to the lending bank, and the lending
bank provides loans to the Group at a preferential policy interest rate, the actual amount of
the borrowed money received shall be used as the recorded value of the borrowing, and the
relevant borrowing costs shall be calculated according to the principal of the loan and the
preferential interest rate of the policy.


(20)
Deferred income tax



The Group adopts the balance sheet obligation method to provide deferred income tax
based on the temporary differences between the carrying amount of assets and liabilities at
the balance sheet date and the tax base, as well as the difference between the carrying
amount and the tax basis of items that are not recognized as assets and liabilities but whose
tax basis can be determined in accordance with the provisions of the tax law.



Deferred tax liabilities are recognized for all kinds of taxable temporary differences, unless:




A taxable temporary difference arises in the following transactions: the initial
recognition of goodwill, or the initial recognition of assets or liabilities arising in a single
transaction that is not a business combination, the transaction occurs that does not
affect neither the accounting profit nor the taxable income or deductible loss, and the
assets and liabilities initially recognized do not result in the creation of an equal amount
of taxable temporary differences and deductible temporary differences;

For taxable temporary differences related to investments in subsidiaries and
associates, the timing of the reversal of the temporary difference is controllable and
the temporary difference is likely not to be reversed in the foreseeable future.



For deductible temporary differences, deductible losses and tax credits that can be carried
forward to future years, the Group recognises deferred tax assets to the extent that it is
likely to obtain future taxable income to offset the deductible temporary differences,
deductible losses and tax credits, unless:




A deductible temporary difference arises in a single transaction that is not a business
combination, the transaction does not affect the accounting profit or taxable income or
deductible loss at the time of the transaction, and the assets and liabilities initially
recognized do not result in the creation of an equal amount of taxable temporary
difference and a deductible temporary difference;

For deductible temporary differences related to investments in subsidiaries and
associates, the temporary differences are likely to be reversed in the foreseeable future
and taxable income to be used to offset the temporary differences is likely to be
obtained in the future.







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

59
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(20)
Deferred income tax (Cont’d)



The Group's deferred tax assets and deferred tax liabilities are measured at the applicable
tax rate during the period in which the assets are expected to be recovered or the liabilities
are liquidated in accordance with the provisions of the tax law, and reflect the income tax
impact of the expected recovery of assets or the settlement of liabilities at the balance sheet
date.



At the balance sheet date, the Group reviews the carrying amount of deferred tax assets
and writes down the carrying amount of deferred tax assets if it is likely that sufficient taxable
income will not be available in future periods to offset the benefits of deferred tax assets. At
the balance sheet date, the Group re-evaluates the unrecognised deferred tax assets to the
extent that it is likely to obtain sufficient taxable income to be able to reverse all or part of
the deferred tax assets.



Deferred tax assets and deferred tax liabilities are presented on a net basis when the
following conditions are met: they have the legal right to settle current income tax assets
and current income tax liabilities on a net basis; Deferred tax assets and deferred tax
liabilities are related to the income tax levied by the same tax collection and administration
department on the same taxable entity.


(21)
Leases

At the commencement date of the contract, the Group assesses whether the contract is a
lease or a included lease and if a party to the contract relinquishes the right to control the
use of one or more identified assets for a certain period of time in exchange for
consideration, the contract is a lease or a included lease.

(a)
As the lessee

In addition to short-term leases and leases of low-value assets, the Group recognises right-
of-use assets and lease liabilities for leases.



If the contract includes both lease and non-lease parts, the Group shall apportion the
contract consideration according to the relative proportion of the individual prices of each
part.



At the commencement date of the lease term, the Group recognises its right to use the
leased asset during the lease term as a right-of-use asset, which is initially measured at
cost. The cost of a right-of-use asset includes: the initial measurement amount of the lease
liability; the amount of the lease payment paid on or before the start date of the lease term
(less the amount in relation to the lease incentive received); Initial direct expenses incurred
by the lessee; The costs that the lessee expects to incur in order to dismantle and remove
the leased asset, restore the premises on which the leased asset is located, or restore the
leased asset to the condition agreed in the terms of the lease. If the Group remeasures
lease liabilities due to changes in lease payments, the carrying amount of right-of-use
assets will be adjusted accordingly. Subsequently, the Group adopted the average life
method to provide depreciation for right-of-use assets. If it can be reasonably determined
that the ownership of the leased assets will be acquired at the end of the lease term, the
Group shall accrue depreciation during the remaining useful life of the leased assets. If it is
not reasonably certain that the ownership of the leased assets can be obtained at the end
of the lease term, the Group shall accrue depreciation during the period between the lease
term and the remaining useful life of the leased assets.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

60
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(21)
Leases (Cont’d)


(a)
As the lessee(Cont’d)



At the commencement date of the lease term, the Group recognises the present value of
the outstanding lease payments as lease liabilities, excluding short-term leases and leases
of low-value assets. Lease payments include fixed payments and substantial fixed
payments net of lease incentives, variable lease payments depending on the index or ratio,
expected payments based on the residual value of the guarantee, and the exercise price of
the purchase option or the exercise of the termination option, provided that the Group
reasonably determines that the option will be exercised or the lease term reflects that the
Group will exercise the lease termination option. Variable lease payments that are not
included in the measurement of lease liabilities are recognized in profit or loss for the current
period when actually incurred, unless otherwise specified in the cost of the relevant assets.
The Group remeasures lease liabilities based on the present value of the changed lease
payments when there is a change in the amount of the real fixed payment, a change in the
estimated amount payable for the residual value of the guarantee, a change in the index or
ratio used to determine the amount of the lease payment, and a change in the evaluation
result or actual exercise of the option to purchase, renew or terminate the option.



The Group recognises a lease with a lease term of not more than 12 months and without a
purchase option as a short-term lease on the commencement date of the lease term; When
a single leased asset is a brand new asset, a lease with a lower value is recognized as a
lease of a low-value asset. The Group chooses not to recognise right-of-use assets and
lease liabilities for short-term leases and leases of low-value assets. The cost of the relevant
asset or current profit or loss is recognized on a straight-line basis for each period of the
lease term.


(b)
As the lessor



Leases that transfer substantially all of the risks and rewards associated with ownership of
the leased assets at the lease commencement date are finance leases, and all other leases
are operating leases.



The rental income from operating leases is recognized as profit or loss for the current period
on a straight-line basis for each period of the lease term, and the variable lease payments
that are not included in the lease receipts are recognized in the profit or loss for the current
period when actually incurred. Initial direct expenses are capitalised and amortized over the
lease term on the same basis as rental income recognition, and are included in profit or loss
for the current period.



On the commencement date of the lease term, the Group recognized the financial lease
receivables for the financial lease and terminated the recognition of the financial lease
assets. When the Group initially measures the financial lease receivables, the net lease
investment is used as the recorded value of the financial lease receivables. Net lease
investment is the sum of the unsecured residual value and the present value of lease
receipts not yet received at the start date of the lease term discounted at the interest rate
embedded in the lease, including initial direct costs. The Group calculates and recognises
interest income for each period of the lease term at a fixed periodic interest rate. Variable
lease payments made by the Group that are not included in the measurement of net lease
investments are recognized in profit or loss for the current period when they are actually
incurred.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

61

3
Summary of significant accounting policies and accounting estimates (Cont’d)

(22)
Safety production fee



The safety production fee withdrawn in accordance with the regulations shall be included in
the cost of the relevant product or the current profit or loss, and shall be included in the
special reserve; When using, distinguish whether fixed assets are formed and deal with
them separately: if it is an expense expenditure, it will directly offset the special reserves; If
fixed assets are formed, the expenses incurred shall be collected, and the fixed assets shall
be recognized when they reach the intended usable state, and the equivalent special
reserves shall be written off and the equivalent accumulated depreciation shall be
recognized.


(23)
Fair value measurement



Assets and liabilities measured or disclosed at fair value in the financial statements are
determined based on the lowest level of inputs that are material to the fair value
measurement as a whole: Level 1 inputs, which are unadjusted quotes in active markets for
the same assets or liabilities that can be obtained at the measurement date; Level 2 inputs,
which are directly or indirectly observable inputs for related assets or liabilities other than
Level 1 inputs; The third level of input value, the unobservable input value of the relevant
asset or liability.



At each balance sheet date, the Group re-evaluates the assets and liabilities recognized in
the financial statements at fair value on an ongoing basis to determine whether there is a
transition between the levels of fair value measurement.

(24)
Critical accounting estimates and judgements



The preparation of financial statements requires management to make judgments,
estimates and assumptions that affect the amounts and disclosures of income, expenses,
assets and liabilities, as well as the disclosure of contingent liabilities at the balance sheet
date. The results of these uncertainties in assumptions and estimates may result in
significant adjustments to the carrying amounts of the assets or liabilities affected in the
future.


(a)
Critical judgements in applying the accounting policies



In applying the Group's accounting policies, management has made the following
judgments that have a material impact on the amounts recognized in the financial
statements:



Business model

The classification of financial assets at the time of initial recognition depends on the Group's
business model for managing financial assets, and in determining the business model, the
Group considers the manner in which the performance of financial assets is evaluated and
reported to key management personnel, the risks affecting the performance of financial
assets and how they are managed, and the manner in which relevant business managers
are remunerated. In assessing whether the objective is to collect contractual cash flows,
the Group needs to analyze and determine the reason, timing, frequency and value of the
sale of financial assets before the maturity date.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

62
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(24)
Critical accounting estimates and judgements (Cont’d)


(a)
Critical judgements in applying the accounting policies(Cont’d)



Characteristics of contractual cash flows

The classification of financial assets at the time of initial recognition depends on the
contractual cash flow characteristics of the financial assets, and it is necessary to determine
whether the contractual cash flows are only the payment of principal and interest based on
the outstanding principal, whether there is a significant difference compared with the
benchmark cash flow when the time value of money is included in the assessment of the
time value of money, and whether the fair value of the prepayment feature is very small in
the case of financial assets containing prepayment features.



Judgment of a significant increase in credit risk and credit impairment that has occurred

In distinguishing the different stages of financial instruments, the Group's judgment on the
significant increase in credit risk and the credit impairment that has occurred is as follows:



The Group's main criteria for judging a significant increase in credit risk are that the number
of overdue days exceeds 30 days, or there is a significant change in one or more of the
following indicators: the debtor's business environment, internal and external credit ratings,
significant changes in actual or expected operating results, and a significant decline in the
value of collateral or the credit rating of the guarantor that will affect the probability of default.



The Group's main criteria for judging that credit impairment has occurred are that the
number of overdue days exceeds 90 days (i.e., default has occurred), or one or more of the
following conditions are met: the debtor has significant financial difficulties, undergoes other
debt restructuring or is likely to go bankrupt.


(b)
Uncertainty in the estimate



The following are key assumptions about the future at the balance sheet date and other key
sources of uncertainty in the estimates that may result in significant adjustments to the
carrying amounts of assets and liabilities in future periods.



Impairment of financial instruments

The Group uses an expected credit loss model to assess the impairment of financial
instruments, and the application of the expected credit loss model requires significant
judgment and estimation, taking into account all reasonable and substantiated information,
including forward-looking information. In making these judgments and estimates, the Group
inferred the expected changes in the debtor's credit risk based on historical repayment data
combined with economic policies, macroeconomic indicators, industry risks and other
factors. Different estimates may affect the provision for impairment, and the provision for
impairment may not be equal to the actual amount of impairment losses in the future.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

63
3
Summary of significant accounting policies and accounting estimates (Cont’d)


(24)
Critical accounting estimates and judgements (Cont’d)


(b)
Uncertainty in the estimate(Cont’d)



Impairment of non-current assets other than financial assets (other than goodwill)

The Group determines whether there is any indication of possible impairment of non-current
assets other than financial assets at the balance sheet date. For intangible assets with an
indefinite useful life, in addition to the impairment test conducted annually, when there are
signs of impairment, the impairment test is also conducted. Other non-current assets, other
than financial assets, are tested for impairment when there are indications that their book
value is not recoverable. Impairment occurs when the carrying amount of an asset or group
of assets is higher than the recoverable amount, i.e., the higher of the fair value less
disposal costs and the present value of the projected future cash flows. The fair value, net
of disposal costs, is determined by reference to the agreed sale price or observable market
price of a similar asset in an arm's length transaction, less incremental costs directly
attributable to the disposal of the asset. When estimating the present value of future cash
flows, management must estimate the projected future cash flows of the asset or group of
assets and select an appropriate discount rate to determine the present value of future cash
flows.



Development expenditures

When determining the amount to be capitalized, management must make assumptions
regarding the estimated future cash flows of the asset, the applicable discount rate, and the
expected benefit period.



Deferred tax assets

To the extent that there is likely to be sufficient taxable income to cover the deductible loss,
deferred tax assets should be recognised for all unutilised deductible losses. This requires
management to use a great deal of judgment to estimate the timing and amount of taxable
income to be obtained in the future, combined with a tax planning strategy, to determine
the amount of deferred tax assets to be recognized.



Warranty

For a portfolio of contracts with similar characteristics, the Group makes a reasonable
estimate of the warranty rate based on historical warranty data, current warranty situation,
and all relevant information such as product improvement and market changes. The
estimated warranty rates may not be equal to the actual future warranty rates, and the
Group has re-evaluated the warranty rates at least at each balance sheet date and
determined the projected liabilities based on the re-assessed warranty rates.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

64

4
Taxation


(1)
The main categories and rates of taxes applicable to the Group are set out below:



Category
Taxation basis
Tax rate





Value-added tax
(“VAT”)
The difference between the sales amount and the
output tax calculated at the applicable tax rate,
after deducting the input tax amount for which
the credit is granted
13%, 9% and 6%

Consumption tax
Taxable sales amount
9%, 5% and 3%

City maintenance and
construction tax
The payment amount of VAT and consumption
tax
7% and 5%

Enterprise income tax
Taxable income
25% and 15%




(2)
Tax preference



According to the relevant regulations of the national high-tech certification and related
preferential tax policies, the company has passed the certification of high-tech enterprises in
2024 and is valid for three years. The corporate income tax rate applicable to the Company in
six months ended 30 June 2026 is 15% (the six months ended 30 June 2025: 15%).



As at 30 June 2026, except for the Company, the Company’s wholly-owned companies,
including JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co., Ltd. (“JMCS”),
Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), Guangzhou Fujiang New
Energy Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford Automobile Technology
(Shanghai) Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at
the rate of 25% (the six months ended 30 June 2025: 25%).



Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy for
the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the Ministry
of Finance and the State Taxation Administration, the Company, as an advanced manufacturing
enterprise, from January 1, 2023 to December 31, 2027, the Company will add 5% of the
deductible input tax for the current period to offset the VAT payable.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

65
5
Notes to the consolidated financial statements


(1)
Cash at bank and on hand




30 June 2026

31 December 2025






Cash at bank
10,755,764,460
11,898,659,395

Cash at finance company (a)
(Note 8(6))
1,352,479,456
1,592,494,805

Other cash and cash equivalents (b)
26,196,044
27,137,724

Interest receivable
37,540,485

64,248,422


12,171,980,445

13,582,540,346





(a)
As at 30 June 2026, the group's bank deposit with Jiangling Automobile Group Finance Co,
Ltd. was RMB1,352,479,456. The Group's bank deposits placed with Jiangling Motor Group
Finance Company Limited(“JMCF”) bear interest at the bank's annual interest rate of 0.85%-
1.4% (31 December 2025: 0.85%-1.55%) on RMB deposits for the same period.

JMCF, a subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-banking financial
institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment Co., Ltd.
(“JIC”), a main shareholder of the Company.


(b)
Other cash and cash equivalents of RMB26,196,044 (31 December 2025: 27,137,724) were
the frozen funds of the Group's litigation.


(2)
Financial assets held for trading




30 June 2026

31 December 2025




Structural deposits
801,738,192

801,902,466


(3)
Accounts receivable




30 June 2026
31 December 2025



Accounts receivable
6,439,752,462
6,261,767,357
Less: Provision for bad debts
(121,143,950)
(120,361,590)

6,318,608,512
6,141,405,767

(a)
The aging of accounts receivable was analysed as follows:




30 June 2026
31 December 2025




Within 1 year
6,315,226,798
6,136,599,101

1 to 2 years
3,517,464
2,332,966

Over 2 years
121,008,200
122,835,290


6,439,752,462
6,261,767,357



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

66
5
Notes to the consolidated financial statements (Cont’d)

(3)
Accounts receivable (Cont’d)


As at 30 June 2026, accounts receivable with individually significant amounts and aged
over three years were analyzed as follows:



Balance

Reasons and risk of collection






Company 1
63,365,929

As the debtor had difficulties in operation and was
involved
in
several
lawsuits,
the
Group
considered that the receivable was difficult to be
recovered and therefore a provision for bad debts
had been made in full.





Company 2
37,924,214

The Group considered that the new energy
subsidy amount was difficult to be recovered from
relevant subsidy distribution departments over a
long period of time and therefore a provision for
bad debts had been made in full.





Company 3
9,804,890

Due to the cash flow arrangement of the debtor,
the accounts receivable had a long aging, but the
debtor has a good historical collection situation
and still has normal business dealings with the
Group, and the Group considered that the
receivables were likely to be recovered, so a
provision for bad debts was made in the grouping
- sales of general automobiles.

(b)
As at 30 June 2026, the top five accounts receivable ranked by the balances of the debtors
are analysed as follows:




Balance

Amount of provision
for bad debts

% of total
balance

The total accounts receivable of
the top five balances
5,399,184,129

74,277,299

84%




(c)
Provision for bad debts



For accounts receivable, the Group measures the loss provision based on the lifetime ECL
regardless of whether there is a significant financing component.



The provision for bad debts of accounts receivable was analysed by category as follows:




30 June 2026

Book balance

Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio






Provision for bad debts on
the individual basis (i)
101,799,259
2%

101,673,142
99.88%

Provision for bad debts on
the grouping basis (ii)
6,337,953,203
98%

19,470,808
0.31%


6,439,752,462
100%

121,143,950
1.88%





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

67
5
Notes to the consolidated financial statements (Cont’d)
(3)
Accounts receivable (Cont’d)
(c)
Provision for bad debts (Cont’d)

31 December 2025

Book balance

Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio






Provision for bad debts on
the individual basis (i)
103,465,547
2%

103,231,811
99.77%

Provision for bad debts on
the grouping basis (ii)
6,158,301,810
98%

17,129,779
0.28%


6,261,767,357
100%

120,361,590
1.92%

(i)
Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:




30 June 2026


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)


Amount







New energy subsidies
receivable

37,924,214
100.00%

37,924,214

Receivables for
automobiles

63,875,045
99.80%

63,748,928



101,799,259


101,673,142




31 December 2025


Book balance
Provision for bad debts


Amount
Lifetime ECL (%)


Amount






New energy subsidies
receivable

37,924,214
100.00%

37,924,214

Receivables for
automobiles

65,541,333
99.64%

65,307,597



103,465,547


103,231,811


As at 30 June 2026, the Group assessed the expected credit losses on the related
accounts receivable. The Group considered a portion of the receivables cannot be
collected, therefore, a provision for bad debt was made for those receivables. The related
amount was RMB101,673,142 (31 December 2025: RMB103,231,811), of which
RMB1,558,669 (the six months ended 30 June 2025: no impact on profit or loss for the
current period) was reversed in profit or loss for the current period.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

68
5
Notes to the consolidated financial statements (Cont’d)


(3)
Accounts receivable (Cont’d)


(c)
Provision for bad debts (Cont’d)

(ii)
Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows:



Grouping - Domestic sales of general automobiles:





30 June 2026


Book balance

Provision for bad debts


Amount

Lifetime ECL
(%)

Amount








Not overdue

1,055,737,138

0.08%

819,336

Overdue for 1 to 30 days

8,014,455

2.60%

208,339

Overdue for 31 to 60 days

4,373,909

4.40%

192,288

Overdue for 61 to 90 days

1,577,940

6.12%

96,594

Overdue over 90 days

39,833,988

9.18%

3,656,760



1,109,537,430



4,973,317




31 December 2025


Book balance

Provision for bad debts


Amount

Lifetime ECL
(%)

Amount








Not overdue

1,298,021,154

0.02%

256,917

Overdue for 1 to 30 days

28,433,864

1.25%

354,247

Overdue for 31 to 60 days

9,159,455

2.18%

199,456

Overdue for 61 to 90 days

6,007,784

3.66%

219,824

Overdue over 90 days

28,609,142

9.18%

2,626,319



1,370,231,399



3,656,763
























JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

69
5
Notes to the consolidated financial statements (Cont’d)


(3)
Accounts receivable (Cont’d)


(c)
Provision for bad debts (Cont’d)


(ii)
Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):


Grouping - Export sales of general automobiles:





30 June 2026


Book balance

Provision for bad debts


Amount
Lifetime ECL (%)

Amount








Not overdue

4,953,208,692

0.20%

9,906,417




31 December 2025



Book balance

Provision for bad debts



Amount

Lifetime ECL (%)

Amount









Not overdue

4,538,555,702

0.20%

9,077,111


Grouping - Sales of new energy automobiles:



30 June 2026


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Overdue over 90 days

4,122,180

80.00%

3,297,744




31 December 2025


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Overdue over 90 days

4,122,180

80.00%

3,297,744



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

70
5
Notes to the consolidated financial statements (Cont’d)


(3)
Accounts receivable (Cont’d)


(c)
Provision for bad debts (Cont’d)


(ii)
Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):


Grouping – Automobile parts:





30 June 2026


Book balance

Provision for bad debts


Amount

Lifetime ECL
(%)

Amount








Not overdue

173,507,910

0.30%

520,524

Overdue for 1 to 30 days

55,025,397

0.30%

165,076

Overdue for 31 to 60 days

26,579,221

0.50%

132,896

Overdue for 61 to 90 days

7,358,756

0.60%

44,153

Overdue over 90 days

8,613,617

5.00%

430,681



271,084,901



1,293,330




31 December 2025


Book balance

Provision for bad debts


Amount

Lifetime ECL
(%)

Amount








Not overdue

188,462,019

0.30%

565,386

Overdue for 1 to 30 days

22,120,280

0.30%

66,361

Overdue for 31 to 60 days

17,471,552

0.50%

87,358

Overdue for 61 to 90 days

11,088,147

0.60%

66,529

Overdue over 90 days

6,250,531

5.00%

312,527



245,392,529



1,098,161

(iii)
The provision for bad debts was RMB782,360 this period.

(d)
There was no provision for bad debts actually written off during the period.


(e)
As at 30 June 2026 and 31 December 2025, there were no accounts receivable pledged.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

71




5
Notes to the consolidated financial statements (Cont’d)


(4)
Financing receivables



30 June 2026

31 December 2025




Bank acceptance notes
48,495,341

205,851,591



The Group considers the need for its daily fund management to discount and endorse a
portion of bank acceptance bills, and the business model for managing these bills aims both
at receiving contractual cash flows and at selling them; therefore, all bank acceptance bills
of the Group are classified as financial assets measured at fair value with changes
recognized in other comprehensive income. For the six months ended 30 June 2026 , the
Group endorsed and discounted bank acceptance notes, and almost all risks and rewards
of ownership have been transferred to other parties, accordingly, the carrying amounts of
bank acceptance notes that were derecognised by the Group were RMB797,009,380 and
RMB3,892,639,938(2026: RMB1,698,864,617 and RMB7,692,252,503) respectively, and
the related losses on discount of RMB6,180 ( for the six months ended 30 June 2025 :
RMB234,105) were included in investment income (Note 5(52)).




As at 30 June 2026 and 31 December 2025, as the credit risk characteristics of these bank
acceptance notes were similar, no provision for impairment was made individually. In
addition, the Group considered that its bank acceptance notes were not exposed to
significant credit risk and the probability of default of these banks was very low.



As at 30 June 2026 and 31 December 2025, the Group had no pledged bank acceptance
notes receivable presented in financing receivables.



As at 30 June 2026, the Group's bank acceptance notes had been endorsed or discounted
but not yet matured were RMB4,534,675,768, which had been derecognised.



There was no significant write-offs of financing receivables for the Group as at 30 June
2026 ( the six months ended 30 June 2025 : Nil).





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

72
5
Notes to the consolidated financial statements (Cont’d)

(5)
Advances to suppliers

(a)
The aging of advances to suppliers is analysed as follows:
30 June 2026

31 December 2025
Amount
% of total
balance

Amount
% of total
balance





Within 1 year
139,232,552
97%
94,393,889
96%
Over 1 year
4,235,154
3%
4,230,171
4%

143,467,706
100%

98,624,060
100%

(b)
As at 30 June 2026, the top five advances to suppliers by the balances of the debtors are
analysed as follows:
Amount

% of total balance



Total prepayments of the top
five balances
143,467,706

100%


(6)
Other receivables


30 June 2026

31 December 2025
Bills for R&D projects
7,311,261

5,262,421
Import working capital
5,000,000
5,000,000
Guarantees
3,304,083
3,932,887
Gas and electricity bills
2,111,988
21,112,025
Platform utilization fee
-
5,831,714

Receivables from land
acquisition and storage
-
79,807,336
Others
10,743,062
13,986,707
28,470,394
134,933,090
Less: Provision for bad debts
(95,558)
(164,713)
28,374,836
134,768,377


The Group did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.


(a)
The aging of other receivables is analysed as follows:




30 June 2026

31 December 2025





Within 1 year
25,527,472

131,308,902

Over 1 year
2,942,922

3,624,188


28,470,394

134,933,090



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

73
5
Notes to the consolidated financial statements (Cont’d)


(6)
Other receivables (Cont’d)

(b)
Provision for losses and changes in book balance statements:



The provision for bad debts of other receivables is analysed by category as follows:



30 June 2026

Book balance

Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio







Provision for bad debts on the
individual basis
-
-

-
-

Provision for bad debts on the
grouping basis
28,470,394
100%

95,558
0.34%


28,470,394
100%

95,558
0.34%



31 December 2025

Book balance

Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio







Provision for bad debts on the
Individual basis
79,807,336
59%

-
-

Provision for bad debts on the
grouping basis
55,125,754
41%

164,713
0.30%


134,933,090
100%

164,713
0.12%




Stage 1




12-month ECL
(grouping)

12-month ECL
(individual)

Total


Book
balance
Provision
for bad
debts
Book balance
Provisio
n for
bad
debts

Provision
for bad
debts







31 December 2025

55,125,754
164,713
79,807,336

164,713

Decrease in the
current period

(26,655,360)
-
(79,807,336)

-

Provision for bad
debts accrued
during the period

-
(69,155)
-

(69,155)
30 June 2026

28,470,394
95,558
-

95,558


As at 30 June 2026 and 31 December 2025, the Group had no other receivables at Stage 2
and Stage 3. The analysis of other receivables at Stage 1 was stated below:





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

74
5
Notes to the consolidated financial statements (Cont’d)

(6)
Other receivables (Cont’d)

(b)
Provision for losses and changes in book balance statements (Cont’d):


As at 30 June 2026, the Group’s other receivables with provision for bad debts were
analysed below:



Book balance
12-month
ECL rates
Provision for
bad debts
Reason







Provision on the grouping basis:






Bills for R&D projects
7,311,261

0.34%

24,540
ECL

Import working capital
5,000,000

0.34%

16,782
ECL

Guarantees
3,304,083

0.34%

11,090
ECL

Gas and electricity bills
2,111,988

0.34%

7,089
ECL

Others
10,743,062

0.34%

36,057
ECL


28,470,394


95,558





As at 31 December 2025, the Group’s other receivables with provision for bad debts on the
grouping basis are analysed as follows:



Book balance
12-month
ECL rates
Provision for
bad debts
Reason







Provision on the individual basis:





Receivable from land acquisition and
storage (i)
79,807,336
-
-
ECL

Provision on the grouping basis:





Gas and electricity bills
21,112,025
0.30%
63,082
ECL

Platform utilization fee
5,831,714
0.30%
17,425
ECL

Bills for R&D projects
5,262,421
0.30%
15,724
ECL

Import working capital
5,000,000
0.30%
14,940
ECL

Guarantees
3,932,887
0.30%
11,751
ECL

Others
13,986,707
0.30%
41,791
ECL


134,933,090

164,713


(c)
As at 30 June 2026, the Group reversed the provision for bad debts amounting to
RMB69,155. The reversal in the current period is due to the actual receipt of other
receivables corresponding to the provision for bad debts in the previous period.


(d)
There was no provision for bad debts actually written off during the period.


(e)
As at 30 June 2026, the top five other receivables by the balances of the debtors are listed
as follows:


Nature

Balance

Aging

% of
total
balance

Provision
for bad
debts












Company 1
Import working
Capital.etc
6,101,420

within 1 year

21%

20,479

Company 2
Gas bills
2,111,988

within 1 year

7%

7,089

Company 3
Office expenses
2,106,895

within 1 year

7%

7,072

Company 4
Repair fees
1,523,041

within 1 year

5%

5,112

Company 5
Design fees
1,431,000

within 1 year

5%

4,803




13,274,344


45%

44,555



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

75
5
Notes to the consolidated financial statements (Cont’d)

(7)
Inventories
(a)
Inventories were summarised by category as follows:

30 June 2026

31 December 2025
Book balance
Provision for
decline in the
value of
inventories
Carrying
amount
Book balance
Provision for
decline in the
value of
inventories
Carrying
amount






Raw materials
1,182,814,690
59,117,650
1,123,697,040

1,107,964,940
64,981,628
1,042,983,312
Finished goods
613,307,636
3,594,240
609,713,396
666,482,402
21,361,803
645,120,599
Work in progress
252,785,824
39,848
252,745,976

178,941,925
49,688
178,892,237
Low value consumables
62,131,201
-
62,131,201

65,588,843
543,890
65,044,953
Materials in transit
34,034,865
-
34,034,865

67,782,373
-
67,782,373
Materials consigned for processing
32,734,552
-
32,734,552

12,102,234
-
12,102,234
2,177,808,768
62,751,738
2,115,057,030

2,098,862,717
86,937,009
2,011,925,708

(b)
Provision for decline in the value of inventories was analysed as follows:

31 December 2025
Increase in the
current period
Decrease in the current period
30 June 2026
Provision
Reversal

Write-off






Raw materials
64,981,628
-
(258,830)

(5,605,148)
59,117,650
Finished goods
21,361,803
-
-

(17,767,563)
3,594,240
Low value consumables
543,890
-
-

(543,890)
-
Work in progress
49,688
-
-

(9,840)
39,848
86,937,009
-
(258,830)

(23,926,441)
62,751,738


JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]


76
5
Notes to the consolidated financial statements (Cont’d)

(7)
Inventories (Cont’d)

(c)
Provision for decline in the value of inventories was analysed as follows:
The Group uses whether the cost is higher than the net realizable value as the basis for the
provision for inventory decline. Net realizable value is determined by the estimated selling price of
the inventory, less the estimated costs to be incurred at completion, estimated contract
performance costs and selling expenses, and related taxes. The reason for the reversal or resale
of the provision for inventory decline in the current period is the increase in the net realizable value
of the inventory for which the provision for inventory decline has been made in previous years or
the sales realized in the current period.

(8)
Other current assets
30 June 2026
31 December 2025
Taxes prepaid, input VAT to be
deducted and to be verified
1,290,806,147
1,288,158,530
Others
64,247,908
42,858,755
1,355,054,055
1,331,017,285
Less: provision for diminution in value
(145,863,357)
(136,072,357)
1,209,190,698

1,194,944,928
As at 30 June 2026, the Group made a provision for impairment of RMB9,791,000 for input tax that
is expected to not be deductible or used in the future.
(9)
Current portion of non-current assets
30 June 2026
31 December 2025
Current portion of long-term
receivables (Note 5(10))
30,563,429
27,153,632

(10) Long-term receivables


30 June 2026
31 December 2025



Long-term receivables
105,616,317
98,706,775
Less: provision for bad debts
(92,000)
(33,179)
Current portion of long-term
receivables (Note 5(9))
(30,563,429)
(27,153,632)
74,960,888
71,519,964

As at 30 June 2026, the Group's long-term receivables were formed by accounts receivable from
instalment sales, and the payments will be gradually recovered from 2026 to 2030.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

77
5
Notes to the consolidated financial statements (Cont’d)


(11)
Long-term equity investments




30 June 2026

31 December 2025






Associates




- Shanxi Yunnei Power Co., Ltd. (“The Power Company”)
175,003,168
177,016,522

- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”)
-
26,625,399





Less: Provision for impairment of long-term equity investments
-
-


175,003,168
203,641,921



Associates






Movements for the current period



Impairment provision

31 December
2025
Decrease in
investment
Share of net
profit/(loss)
under equity
method
Cash
dividends
declared
Provision for
impairment 30 June 2026
Shareholding
(%)
Voting
rights (%)
30 June
2026
31
December
2025













The Power
Company
177,016,522
-
(2,013,354)
-
-
175,003,168
40.00%
40.00%
-
-

Hanon
Systems
26,625,399
(26,625,399)
-
-
-
-
-
-
-
-

Total
203,641,921
(26,625,399)
(2,013,354)
-
-
175,003,168


-
-

The Group disposed of its equity interest in insignificant associate Hanon Systems during the period. The investment is no longer accounted for as
an associate starting from the disposal date, with gain or loss on disposal recorded in current-period investment income.

Related information of equity in associates is set forth in Note 6(2).

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

78
5
Notes to the consolidated financial statements (Cont’d)


(12)
Fixed assets




30 June 2026
31 December 2025



Fixed assets (a)
5,485,540,829
5,789,147,812
Fixed assets pending for disposal (b)
565,172
276,010

5,486,106,001
5,789,423,822


(a)
Fixed assets

.

Buildings
Machinery and
equipment
Vehicles
Moulds
Electronic and other
equipment
Total








Cost






31 December 2025
2,303,826,800
3,055,638,670
1,417,440,643
4,816,107,653
4,482,974,484
16,075,988,250

Increase in the
current period







Transfers from
construction in
progress
2,110,389
38,879,342
108,477,951
119,803,534
31,606,975
300,878,191

Decrease in the
current period







Disposal or
retirement
-
(45,683,858)
(41,298,220)
(28,501,649)
(61,956,456)
(177,440,183)

Others
-
(27,576,781)
(908,900)
-
(12,531,962)
(41,017,643)

30 June 2026
2,305,937,189
3,021,257,373
1,483,711,474
4,907,409,538
4,440,093,041
16,158,408,615









Accumulated
depreciation







31 December 2025
532,488,814
1,985,239,437
532,584,111
3,162,675,869
3,294,449,632
9,507,437,863

Increase in the
current period







Provision
25,704,383
84,977,723
85,909,933
228,553,117
158,293,133
583,438,289

Decrease in the
current period







Disposal or
retirement
-
(34,128,695)
(24,641,212)
(27,304,741)
(53,529,124)
(139,603,772)

Others
-
(23,690,850)
(176,524)
-
(7,084,623)
(30,951,997)

30 June 2026
558,193,197
2,012,397,615
593,676,308
3,363,924,245
3,392,129,018
9,920,320,383









Provision for
impairment







31 December 2025
172,020,613
30,216,617
177,253,290
343,668,614
56,243,441
779,402,575

Increase in the
current period







Provision
-
-
-
-
-
-

Decrease in the
current period







Disposal or
retirement
-
(11,091,314)
(3,715,859)
(718,419)
(11,329,580)
(26,855,172)

30 June 2026
172,020,613
19,125,303
173,537,431
342,950,195
44,913,861
752,547,403









Carrying amount







30 June 2026
1,575,723,379
989,734,455
716,497,735
1,200,535,098
1,003,050,162
5,485,540,829

31 December 2025
1,599,317,373
1,040,182,616
707,603,242
1,309,763,170
1,132,281,411
5,789,147,812


As at 30 June 2026, depreciation charged to fixed assets amounted to RMB583,438,289 (the six
months ended 30 June 2025: RMB552,829,786), of which the depreciation expenses charged in the
cost of sales, selling and distribution expenses, general and administrative expenses and research
and development expenses were RMB530,345,081, RMB1,360,355, RMB22,714,791 and
RMB29,018,062 (the six months ended 30 June 2025: RMB492,673,591, RMB2,314,697,
RMB26,170,440 and RMB31,671,058), respectively.



The costs of fixed assets transferred from construction in progress amounted to RMB300,878,191
(the six months ended 30 June 2025: RMB838,710,612).



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

79
5
Notes to the consolidated financial statements (Cont’d)


(12)
Fixed assets(Cont’d)


(a)
Fixed assets (Cont’d)


(i)
Temporarily idle fixed assets



As at 30 June 2026, the fixed assets with a carrying amount of approximately RMB131,654,250
(a cost of RMB1,108,465,781) (31 December 2025: a carrying amount of approximately
RMB137,144,685 and a cost of RMB1,253,368,096) were idle due to the termination of the equity
transfer transaction of JMCH and the change of product process of the Group. The analysis was
as follows:




Cost

Accumulated
depreciation

Provision for
impairment

Carrying
amount










Buildings
409,162,422
116,073,644
172,020,613
121,068,165

Machinery and
equipment
67,541,512
49,638,940
14,928,912
2,973,660

Vehicles
37,019,296
31,228,319
4,664,138
1,126,839

Moulds
420,123,177
107,672,708
312,450,469
-

Electronic and other
equipment
174,619,374
138,542,190
29,591,598
6,485,586


1,108,465,781
443,155,801
533,655,730
131,654,250


(ii)
Operating lease of fixed assets:



As of 30 June 2026, the Cost was RMB999,741,657, the accumulated depreciation was
RMB227,857,297, the Impairment provision was RMB168,451,912 and the carrying amount at
the end of the period was RMB603,432,448.


(ii)
Fixed assets with pending certificates of ownership:





Carrying amount
Reason for not obtaining
certificates of ownership






Buildings

14,713,106
Pending procedures


(b)
Fixed assets pending for disposal




30 June 2026

31 December 2025

Vehicles
517,900

250,667

Electronic and other equipment
47,272

10,538

Machinery and equipment
-

14,805


565,172

276,010





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

80
5
Notes to the consolidated financial statements (Cont’d)

(13)
Construction in progress


30 June 2026

31 December 2025

Book balance
Provision
for impairment
Carrying
amount Book balance
Provision
for impairment
Carrying
amount
Projects for
commercial
vehicles
300,816,638
1,287,127
299,529,511 390,972,214
1,311,599
389,660,615
Projects for
automobiles
factory
109,108,187
-
109,108,187
2,224,873
-
2,224,873
Projects for
passenger
vehicles
51,510,017
4,460,314
47,049,703
52,470,311
4,460,314
48,009,997
Projects for
automobile
parts factory
9,343,056
-
9,343,056
22,200,973
-
22,200,973
Others
85,294,420
691,646
84,602,774
46,210,061
691,646
45,518,415

556,072,318
6,439,087
549,633,231 514,078,432
6,435,559
507,614,873




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

81
5
Notes to the consolidated financial statements (Cont’d)
(13)
Construction in progress (Cont’d)
(a)
Movement of significant projects of construction in progress

Project name
Budget
(In RMB0,000)
31 December
2025
Increase in the
current period
Transfer to
fixed assets in
the current
period
Transfer to
intangible
assets in the
current period
30 June 2026
% of project
investment in
budget
Progress of
project
Accumulative
capitalised
borrowing
costs
Including:
Borrowing
costs
capitalised in
the current
period Source of fund










Projects for
commercial vehicles
306,652
390,972,214
131,889,558
(222,045,134)
-
300,816,638
72%
72%
-
-
Self-owned
funds
Projects for
Passenger vehicles
93,874
52,470,311
35,960,310
(36,920,604)
-
51,510,017
77%
77%
-
-
Self-owned
funds
Projects for
Automobiles factory
35,280
2,224,873
110,099,068
(3,215,754)
-
109,108,187
32%
32%
-
-
Self-owned
funds
Projects for
automobile parts
factory
15,599
22,200,973
15,013,547
(27,782,968)
(88,496)
9,343,056
83%
83%
-
-
Self-owned
funds
Others
-
46,210,061
50,476,919
(10,938,203)
(454,357)
85,294,420


292,897
-
Self-owned
funds

514,078,432
343,439,402
(300,902,663)
(542,853)
556,072,318


292,897
-


(b)
Provision for impairment of construction in progress



31 December
2025

Increase in the
current period

Decrease in the
current period

30 June 2026


Reason for provision












Projects for
commercial vehicles
1,311,599
-
(24,472)

1,287,127
The recoverable amount is lower than the carrying amount

Projects for
passenger vehicles
4,460,314
-
-

4,460,314
The recoverable amount is lower than the carrying amount

Others
691,646
-
-

691,646
The recoverable amount is lower than the carrying amount


6,463,559
-
(24,472)

6,439,087


JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

82

5
Notes to the consolidated financial statements (Cont’d)

(14)
Right-of-use assets




Buildings





Cost



31 December 2025

394,260,626

Increase in the current period



New lease contracts

1,063,665

Decrease in the current period

-

30 June 2026

395,324,291





Accumulated depreciation



31 December 2025

274,017,319

Increase in the current period



Provision

40,718,016

Decrease in the current period



Other decrease

(76,011)

30 June 2026

314,659,324





Provision for impairment



31 December 2025

-

Increase in the current period

-

Decrease in the current period

-

30 June 2026

-





Carrying amount



30 June 2026

80,664,967

31 December 2025

120,243,307







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

83
5
Notes to the consolidated financial statements (Cont’d)


(15)
Intangible assets




Land use
rights
Software
use fees
Non-patent
technologies
Others
Total







Cost





31 December 2025
609,675,571
491,579,099
2,725,548,404
38,578,700
3,865,381,774

Increase in the
current period






Transfers from
construction in
progress
-
542,853
-
-
542,853

Internal research
and development
-
-
63,069,616
-
63,069,616

Decrease in the
current period






Disposal
-
-
-
-
-

30 June 2026
609,675,571
492,121,952
2,788,618,020
38,578,700
3,928,994,243








Accumulated
amortisation






31 December 2025
168,716,525
332,580,419
1,482,820,366
38,578,700
2,022,696,010

Increase in the
current period






Provision
6,443,669
28,827,483
209,447,118
-
244,718,270

Decrease in the
current period






Disposal
-
-
-
-
-

30 June 2026
175,160,194
361,407,902
1,692,267,484
38,578,700
2,267,414,280








Provision for
impairment






31 December 2025
-
-
52,416,626
-
52,416,626

Increase in the
current period






Provision
-
-
-
-
-

30 June 2026
-
-
52,416,626
-
52,416,626








Carrying amount






30 June 2026
434,515,377
130,714,050
1,043,933,910
-
1,609,163,337

31 December 2025
440,959,046
158,998,680
1,190,311,412
-
1,790,269,138


As at 30 June 2026, the intangible assets developed by the Group accounted for 61% (31
December 2025: 63%) of the carrying amount of intangible assets.







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

84
5
Notes to the consolidated financial statements (Cont’d)


(16)
Expenditure on research and development

The Group's total expenditure on research and development activities As at 30 June 2026
and 2025 is presented by nature as follows:


Six months ended 30 June

2026
2025



Employee benefits

345,646,582
449,540,890
Design fee

96,310,917
121,218,012
Consumed materials

97,053,597
77,767,929
Depreciation and amortisation

34,819,651
37,108,953
Others

84,779,361
99,655,450


658,610,108
785,291,234





Wherein expenditure on
research and development on
the research phase (Note
5(47))

625,261,173
652,925,801

(a)
The changes in the Group's development expenditures eligible for capitalisation As at 30
June 2026 is analysed as follows:

31 December
2025
Increase in the current
period
Transfer to intangible
assets in the current
period

30 June
2026





Projects for
commercia
l vehicles
57,594,483
33,348,935
63,069,616
27,873,802

The capitalization of the vehicle project started when the product was ready and the R&D
data was frozen, and it had passed the Group's technical review meeting. After the
completion of the development of the project, it is expected to be ready for mass production
of vehicle products with marketing capabilities, with a progress of approximately 60% as
of 30 June 2026, and is expected to be completed within the second quarter 2027.

As at 30 June 2026, there was no impairment of the Group's development expenditure
items (the six months ended 30 June 2025: nil).




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

85
5
Notes to the consolidated financial statements (Cont’d)

(17)
Deferred tax assets and deferred tax liabilities

(a)
Deferred tax assets before offsetting
30 June 2026

31 December 2025
Deductible
temporary
differences and
deductible losses
Deferred tax
assets
Deductible
temporary
differences and
deductible losses
Deferred tax
assets




Accrued expenses and
provisions
4,917,417,935 1,103,667,749
4,615,638,068
1,037,353,003
Recoverable losses
338,438,492
84,609,623
466,815,447
116,703,862
Provision for asset
impairment
1,916,737,437
288,350,223
1,942,298,621
292,044,435
Non-patent technology
663,931,580
164,593,824
593,336,532
143,728,516
Lease liability
58,183,620
17,099,535
135,747,740
23,290,388
Employee education
funds unpaid
24,513,077
3,955,561
25,931,540
4,181,264
Deferred income
20,233,836
3,035,075
13,039,843
1,955,976
Retirement benefits
plan
10,191,744
2,501,362
10,756,000
2,586,000
Others
178,484,789
22,963,450
141,377,441
22,698,198
8,128,132,510 1,690,776,402
7,944,941,232
1,644,541,642


(b)
Deferred tax liabilities before offsetting
30 June 2026

31 December 2025
Taxable
temporary
differences
Deferred tax
liabilities
Taxable temporary
differences
Deferred tax
liabilities




Depreciation of fixed
assets
3,333,978,885
789,596,576
3,106,313,384
696,962,697
Right-of-use assets
80,610,898
16,315,515
120,159,745
22,163,211
Equity transactions
between parent and
subsidiary
227,800,000
34,170,000
207,400,000
31,110,000
Differences between
the fair value of the
identifiable net
assets and carrying
amount arising from
business
combinations
involving enterprises
not under common
control
71,315,088
17,828,772
72,457,584
18,114,396
Amortisation of
intangible assets
86,246,319
19,810,772
88,850,280
18,680,458
Others
1,738,192
434,548
1,902,466
475,616
3,801,689,382
878,156,183
3,597,083,459
787,506,378




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

86

5
Notes to the consolidated financial statements (Cont’d)

(17)
Deferred tax assets and deferred tax liabilities (Cont’d)


(c)
Deductible temporary differences and deductible losses for which no deferred tax asset was
recognised were analysed as follows:







30 June 2026
31 December 2025




Deductible temporary differences
2,989,302,402
3,150,632,098
Deductible losses
2,433,306,489
2,267,940,580


5,422,608,891
5,418,572,678

(d)
Deductible losses for which no deferred tax asset was recognised will be expired in following
years:




30 June 2026

31 December 2025






2026
-

136,794

2027
150,759,177
150,951,754

2028
246,244,245
246,244,245

2029
1,008,158,641
1,008,158,641

2030
862,449,146
862,449,146

2031
165,695,280
-


2,433,306,489

2,267,940,580


(e)
The net balances of deferred tax assets and deferred tax liabilities after offsetting were as
follows:

30 June 2026

31 December 2025
Offsetting
amount
Balance after
offsetting

Offsetting
amount
Balance after
offsetting





Deferred tax assets
(688,853,627) 1,001,922,775
(663,587,640)
980,954,002
Deferred tax liabilities
(688,853,627)
189,302,556
(663,587,640)
123,918,738

(18)
Other non-current assets



30 June 2026
31 December 2025





Prepayment for molds
3,438,898
4,912,712



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

87
5
Notes to the consolidated financial statements (Cont’d)


(19)
Provision for asset impairment and losses



31 December
2025

Increase in the
current period

Decrease in the current period

30 June 2026




Reversal
Write-off
/Disposal









Provision for bad debts of accounts receivable (Note 5(3))
120,361,590

2,341,029

(1,558,669)
-

121,143,950

Including: Provision for bad debts on the
individual basis
103,231,811

-

(1,558,669)
-

101,673,142

Provision for bad debts on the
grouping basis
17,129,779

2,341,029

-
-

19,470,808

Provision for bad debts of other receivables (Note 5(6))
164,713

-

(69,155)
-

95,558

Provision for bad debts of long-term receivables (Note
5(10))
33,179

-

58,821
-

92,000

Sub-total
120,559,482

2,341,029

(1,569,003)
-

121,331,508











Provision for decline in the value of inventories (Note
5(7))
86,937,009

-

(258,830)
(23,926,441)

62,751,738

provisions for other current asset impairment (Note 5 (8))
136,072,357

9,791,000

-
-

145,863,357

Provision for impairment of fixed assets (Note 5(12))
779,480,119

-

-
(26,932,716)

752,547,403

Provision for impairment of construction in progress
(Note 5(13))
6,463,559

-

-
(24,472)

6,439,087

Provision for impairment of goodwill (i)
89,028,412

-

-
-

89,028,412

Provision for impairment of intangible assets (Note 5(15))
52,416,626

-

-
-

52,416,626

Sub-total
1,150,398,082

9,791,000
(258,830)
(50,883,629)

1,109,046,623


1,270,957,564

12,132,029
(1,827,834)
(50,883,629)

1,230,378,131







(i)
As at 31 December 2019, the Group had made full provision for impairment of goodwill.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

88
5
Notes to the consolidated financial statements (Cont’d)


(20)
Short-term borrowings




30 June 2026
31 December 2025




Credit loan
350,000,000
1,950,000,000







As at 30 June 2026, the Group had no overdue short-term borrowings and the interest rates
ranged from 0.75% to 0.87% (31 December 2025: 0.35% to 0.92%).

(21)
Erivative financial liabilities




30 June 2026

31 December 2025






Derivative financial liabilities -




Forward exchange contracts
3,517,243

695,349


(22)
Notes payable


30 June 2026
31 December 2025






Banker's Acceptance Payable
338,413,385
427,292,904





(23)
Accounts payable




30 June 2026
31 December 2025






Payable for automobile parts
10,721,487,036
11,072,236,002

Payable for raw and auxiliary
materials
338,149,121
325,524,482


11,059,636,157
11,397,760,484



As at 30 June 2026, accounts payable with aging over one year amounted to
RMB715,052,632 (31 December 2025: RMB717,410,426), which mainly represented
payables for materials for which a settlement price had not yet been determined, and such
payables had not been finally settled yet.







(24)
Contract liabilities



30 June 2026
31 December 2025





Advances for maintenance and warranty
services, etc.
817,626,690
860,003,200

Advances for automobiles and
automobile parts
204,378,689
147,721,592


1,022,005,379
1,007,724,792

Less: Contract liabilities carried forward
to revenue after 1 year (Note 5(35),
Note 5(43)(c)(i))
(511,013,459)
(461,860,038)


510,991,920
545,864,754




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

89
5
Notes to the consolidated financial statements (Cont’d)

(25)
Employee benefits payable




30 June 2026
31 December 2025




Short-term employee benefits payable (a)
548,202,659
723,926,311
Defined contribution plans payable (b)
473,307
500,343
Defined benefit plans payable (c)
2,289,000
2,289,000
Termination benefits payable (d)
1,505,092
2,440,780

552,470,058
729,156,434

(a)
Short-term employee benefits











31 December
2025

Increase in the
current period

Decrease in the
current period

30 June 2026








Wages and salaries,
bonus, allowances
and subsidies
680,075,034
971,570,902
(1,144,755,696)

506,890,240
Staff welfare
13,233,887
38,888,351

(39,190,036)

12,932,202
Social security
contributions
1,176,372
70,392,000

(70,873,990)

694,382
Including: Medical
insurance
1,104,248
63,994,088

(64,475,713)

622,623

Work injury
insurance
72,124
6,397,912

(6,398,277)

71,759

Housing funds
28,749
113,862,772
(113,884,639)

6,882

Labour union funds
and employee
education funds
29,412,269
22,723,943

(24,457,259)

27,678,953

Other short-term
employee benefits
-
3,653,818

(3,653,818)

-


723,926,311
1,221,091,786
(1,396,815,438)

548,202,659





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

90
5
Notes to the consolidated financial statements (Cont’d)

(25)
Employee benefits payable (Cont’d)

(b)
Defined contribution plans




31 December
2025

Increase in the
current period

Decrease in
the current
period

30 June 2026










Basic pensions
468,306

140,631,334

(140,657,459)

442,181

Unemployment
insurance
32,037

4,459,745

(4,460,656)

31,126


500,343

145,091,079

(145,118,115)

473,307

(c)
Defined benefit plans
31 December
2025

Increase in
the current
period

Decrease in
the current
period
30 June 2026







Post-retirement
benefits payable
(Note 5(35))
2,289,000

1,130,405
(1,130,405)
2,289,000

(d)
Termination benefits payable




30 June 2026
31 December 2025





Early retirement benefits payable
(Note 5(34))
1,030,000

1,030,000

Other termination benefits (i)
475,092
1,410,780


1,505,092

2,440,780


(i)
As at 30 June 2026, other termination benefits paid by the Group for termination of the
employment relationship were RMB1,886,038 (the six months ended 30 June 2025:
RMB2,458,544).

(26)
Taxes payable




30 June 2026

31 December 2025






Consumption tax payable
60,355,129

59,076,964

Land use tax payable
4,422,459

4,609,622

Unpaid VAT
2,924,769
600,401

Enterprise income tax payable
141,141
32,921,540

Others
38,229,334

35,489,914


106,072,832

132,698,441



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

91
5
Notes to the consolidated financial statements (Cont’d)


(27)
Other payables




30 June 2026

31 December 2025






Promotion expenses
3,083,170,376
3,058,197,201

Research and development project
expenses
807,509,350

947,404,470

Ordinary share dividends payable
478,804,588

4,006,342

Construction payment
267,208,228

498,931,773

Guarantees
137,125,650

146,610,838

Advertising and new product
planning fees
119,855,723

106,729,208

Trademark license fee
106,331,004

103,978,965

Transportation expenses
63,032,247

87,941,218

Others
824,675,790

849,894,856


5,887,712,956

5,803,694,871


As at 30 June 2026, other payables with aging over one year of RMB1,898,140,637 (31
December 2025: RMB1,601,148,088) mainly comprised payables for promotion, payables
for research and development expenses and payables for construction projects. Such
payables had not been finally settled yet in view of the continuing business transactions with
distributors and service providers, and engineering projects and research and development
projects that had not yet been accepted and completed.

(28)
Current portion of non-current liabilities





30 June 2026

31 December 2025







Current portion of lease liabilities
(Note 5(31))

25,031,350
91,402,749

Current portion of long-term
borrowings (Note 5(30))

446,006
460,275



25,477,356
91,863,024

(29)
Other current liabilities



30 June 2026
31 December 2025




Provisions expected to be settled
within 1 year (Note 5(32))
288,776,796

285,227,475

Others
26,581,248
19,203,931


315,358,044

304,431,406



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

92
5
Notes to the consolidated financial statements (Cont’d)


(30)
Long-term borrowings






30 June 2026

31 December 2025






Guaranteed loans(a)
669,010

920,551

Less: Current portion of long-term
borrowings (Note 5(28))
(446,006)

(460,275)


669,010

460,276

(a)
As at 30 June 2026, the above guaranteed loans were long-term borrowings amounting to
USD 98,226 guaranteed by JMCF (note 8(5)(c)), borrowed from Industrial and Commercial
Bank of China (“ICBC”), Nanchang Ganjiang Sub-branch with interests paid every half year
and the principal paid in instalments between 10 December 2007 and 27 October 2027.

(b)
As at 30 June 2026, the Group had no overdue long-term borrowings at an interest rate of
1.5% (31 December 2025: 1.5%).



(31)
Lease liabilities





30 June 2026
31 December 2025






Lease liabilities (a)

58,586,826
136,262,865

Less: Current portion of non-
current liabilities (Note 5(28))

(25,031,350)
(91,402,749)



33,555,476
44,860,116


(a)
As at 30 June 2026, the Group had no leases that were not included in lease liabilities but will
result in potential future cash outflows.





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

93
5
Notes to the consolidated financial statements (Cont’d)

(32)
Provisions
31 December
2025
Increase in
the current
period
Decrease in
the current
period
30 June
2026




Product warranties
540,664,152
165,657,871 (151,785,672)
554,536,351
Less: Provisions expected to
be settled within 1
year (Note 5(29))
(285,227,475)

(288,776,796)
255,436,677


265,759,555

Product warranties are expenses expected to be incurred during the warranty period from free
after-sales services, product warranty and other services for the vehicles sold.

(33)
Deferred income

31 December
2025
Increase in the
current period
Decrease in the
current period

Recognised in other
income
30 June 2026
Government grants




Government grants
related to assets
7,067,608
113,300
(959,333)
6,221,575
Government grants
related to
income
6,338,569
10,444,100
(2,416,908)
14,365,761
13,406,177
10,557,400
(3,376,241)
20,587,336




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

94
5
Notes to the consolidated financial statements (Cont’d)

(34)
Long-term employee benefits payable

30 June 2026
31 December 2025



Supplementary retirement benefits and
early-retirement benefits eligible for
recognition of provisions
51,477,339

53,172,000
Less: portion to be paid within one year
(3,319,000)
(3,319,000)

48,158,339
49,853,000

The retirement and early-retirement benefits payable within one year are included in
employee benefits payable (Note 5(25)(c), Note 5(25)(d)).
For retired and early-retired employees, the Group provides them with a certain amount of
supplementary benefits during their retirement or early-retirement period. The amount of
benefits depends on the employee’s position, length of service and salary at the time of
retirement or early-retirement, and is adjusted in accordance with inflation rate and other
factors. The Group’s obligations for supplementary retirement and early-retirement benefits
as at the balance sheet date were calculated using projected unit credit method and were
reviewed by an external independent actuary.




(35)
Other non-current liabilities




30 June 2026

31 December 2025






Contract liabilities carried forward to
revenue after 1 year (Note 5(24))
511,013,459

461,860,038



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

95
5
Notes to the consolidated financial statements (Cont’d)
(36)
Share capital
31 December
2025
Movements for the current period
30 June 2026
Shares newly
issued
Bonus
share
Transfer from
capital surplus
Others
Sub-total







Shares subject to trading restriction -







Other domestic shares







Including: Shares held by domestic
non-state-owned legal
persons
745,140
-
-
-
-
-
745,140
Shares held by domestic
natural persons
5,700
-
-
-
-
-
5,700
750,840
-
-
-
-
-
750,840







Shares not subject to trading restriction -







Ordinary shares denominated in RMB
518,463,160
-
-
-
-
-
518,463,160
Domestically listed foreign shares
344,000,000
-
-
-
-
-
344,000,000

862,463,160
-
-
-
-
-
862,463,160
863,214,000
-
-
-
-
-
863,214,000
Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006, as at 30 June 2026, there were 750,840 shares
currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted conditions.












JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

96
5
Notes to the consolidated financial statements (Cont’d)
(37)
Capital surplus
31 December
2025
Increase in the
current period
Decrease in the
current period
30 June 2026




Share premium
816,609,422
-
-
816,609,422
Other capital surplus
22,833,068
-
-
22,833,068

839,442,490
-
-
839,442,490
(38)
Treasury stock
31 December
2025
Increase in the
current period
Decrease in the
current period
30 June 2026
Treasury stock
170,214,887
-
-
170,214,887

In 2025, with the board's approval, the company repurchased 8,632,078 shares through a dedicated
securities account via centralized bidding. The repurchased shares will be allocated to the employee
stock ownership plan or equity incentive programs. If the company fails to utilize all repurchased shares
within 36 months after completion, the unused shares will be canceled.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

97
5
Notes to the consolidated financial statements (Cont’d)






(39)
Other comprehensive income



Other comprehensive income in the balance
sheet

Other comprehensive income in the income statement for the period ended
30 June 2026
31 December
2025
Attributable
to the
parent
company
after tax
30 June 2026
Amount
incurred before
income tax for
the current
period
Less: Transfer-out
of previous other
comprehensive
income in the
current period
Less:
Income tax
expenses
Attributable to the
parent company after
tax
Attributable to
the subsidiary
after tax







Other comprehensive income that will not be
reclassified to profit or loss







Remeasure changes in defined benefit plans
(23,862,000)
-
(23,862,000)
-
-
-
-
-

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

98

5
Notes to the consolidated financial statements (Cont’d)
(40)
Special reserve

31 December
2025
Increase in the
current period
Decrease in the
current period
30 June 2026

Safety
production cost
7,860,966
10,160,763
(10,520,724)
7,501,005
(41)
Surplus reserve

31 December
2025
Increase in the
current period
Decrease in the
current period
30 June 2026



Statutory surplus reserve
431,607,000
-
-
431,607,000
In accordance with the Company Law of the People’s Republic of China, the Company’s
Articles of Association and the resolution of the Board of Directors, the Company should
appropriate 10% of net profit for the period to the statutory surplus reserve, and the
Company can cease appropriation when the statutory surplus reserve accumulated to more
than 50% of the registered capital. The statutory surplus reserve can be used to make up
for the loss or increase the share capital upon approval from the appropriate authorities. As
the accumulated appropriation to the statuary surplus reserve exceeded 50% of the
registered capital, no appropriation was made in the current period (the six months ended
30 June 2025: Nil).


(42)
Retained earnings
Six months ended 30 June
2026
2025


Retained earnings at the beginning
of the year
9,752,190,648

9,179,333,271
Add: Net profit attributable to shareholders of the
parent company for the current period
738,802,231

732,728,047
Less: Ordinary share dividends payable (a)
(474,985,178)

(614,608,368)
Retained earnings at the end of the Period

10,016,007,701

9,297,452,950






JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

99

5
Notes to the consolidated financial statements (Cont’d)
(42)
Retained earnings(Cont’d)
(a)
On June 25, 2026, the Company's 2025 Annual General Meeting examined and approved the
Company's 2025 Profit Distribution Proposal. Cash dividends will be distributed at RMB 0.55581 per
share, amounting to RMB 474,985,178 in total, based on the total share capital as of the record date
for the distribution, less the total number of shares held in the Company's special repurchase
securities account.
(43)
Revenue and cost of sales

(a)
Revenue and cost of sales




Six months ended 30 June


2026

2025


revenue

cost

revenue

cost

main
operations
18,640,906,727

16,626,494,530
17,647,624,305

15,234,142,089

other
operations
720,960,524

380,452,975
444,761,905

305,514,733


19,361,867,251

17,006,947,505
18,092,386,210

15,539,656,822

(b)
The breakdown of revenue


Six months ended 30 June 2026

Automobiles
Materials and parts
Automobile
maintenance
services, etc.
Total






Recognised at a time point
17,693,463,556
1,002,068,386
-
18,695,531,942

Recognised within a certain
period
-
-
666,335,309
666,335,309

17,693,463,556
1,002,068,386
666,335,309
19,361,867,251



Six months ended 30 June 2025

Automobiles
Materials and parts
Automobile
maintenance
services, etc.
Total






Recognised at a time point
16,700,185,890
1,099,382,084
-
17,799,567,974

Recognised within a certain period
-
-
292,818,236
292,818,236

16,700,185,890
1,099,382,084
292,818,236
18,092,386,210

(c)
The breakdown of cost of sales


Six months ended 30 June 2026

Automobiles
Materials and parts
Automobile
maintenance
services, etc.
Total






Recognised at a time point
15,957,405,543
698,954,395
-
16,656,359,938

Recognised within a certain period
-
-
350,587,567
350,587,567

15,957,405,543
698,954,395
350,587,567
17,006,947,505



As at 30 June 2026, the amount of revenue corresponding to the performance obligations that the
Group had contracted but had not commenced or completed was RMB1,022,005,379, of which the
Group expects that RMB204,378,689 and RMB306,613,231 will be recognised as revenue from the
sales of automobiles and parts and revenue from the sales of automobile maintenance services
respectively in 2026, RMB511,013,459 will be recognised as revenue from automobile maintenance
services from 2027 to 2031(Note 5(24)).



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

100


5
Notes to the consolidated financial statements (Cont’d)

(44)
Taxes and surcharges




Six months ended 30 June


2026

2025






Consumption tax
382,861,091
435,046,919

City maintenance and construction tax
32,877,944
35,278,515

Educational surcharge
32,711,039
35,050,903

Stamp tax
17,028,777
16,794,959

Real estate tax
9,867,435
10,106,318

Land use tax
9,486,135
10,097,811

Others
160,283
198,079


484,992,704
542,573,504

(45)
Selling and distribution expenses


Six months ended 30 June

2026

2025




Promotion expenses
204,957,020

203,844,392
Employee benefits
47,147,539

106,794,037
Advertising and new product planning fees
47,607,233

39,306,864
Packaging material expenses
18,444,045

18,726,471
Storage expenses
15,306,678

22,792,774
Depreciation and amortisation expenses
9,259,745

6,365,515
Others
48,453,630

68,962,440

391,175,890

466,792,493

(46)
General and administrative expenses


Six months ended 30 June

2026

2025



Employee benefits
277,683,992

278,702,135
Depreciation and amortisation expenses
57,390,508

59,481,750
Trademark license fee
12,488,370

33,660,541
Repair expenses
8,741,678

6,888,317
General office expenses
4,876,890

6,048,357
Consulting fees
2,343,855

4,691,161
Others
47,699,581

71,208,960

411,224,874

460,681,221

(47)
Research and development expenses





Six months ended 30 June

2026

2025




Employee benefits
328,324,751

389,317,458
Materials expenses
94,804,005

73,513,933
Design fee
89,047,999

70,720,348
Depreciation and amortisation expenses
34,819,651

37,108,953
Others
78,264,767

82,265,109

625,261,173

652,925,801


JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

101
5
Notes to the consolidated financial statements (Cont’d)


(48)
Financial expenses






Six months ended 30 June


2026

2025






Interest costs
2,228,816
5,017,907

Add: Interest costs on lease liabilities
1,894,142
2,988,976

Interest expenses
4,122,958
8,006,883

Less: Interest income from cash at bank
(39,536,688)
(72,870,258)

Other interest income
(2,005,543)
(1,590,930)

Interest income
(41,542,231)
(74,461,188)

Exchange gains or losses
(7,732,726)
10,477,168

Others
568,590
600,450


(44,583,409)
(55,376,687)



(49)
Asset impairment losses






Six months ended 30 June


2026

2025






Impairment of other current assets
9,791,000

-

Impairment of inventory
(258,830)

(42,736)


9,532,170

(42,736)

(50)
Credit impairment losses




Six months ended 30 June


2026

2025






Losses on bad debts of accounts receivable
782,360
2,311,109
Losses on bad debts of other receivables
(69,155)

28,057
Losses on bad debts of notes receivable
-
19
Losses on bad debts of long-term receivables
58,821
(43,558)

772,026
2,295,627

(51)
Other income










Six months ended 30 June
Asset related/
Income related



2026

2025

Government grants




- Supporting funds by government
157,500,000

191,600,000
Income related

- Research and development activities
related subsidies
1,539,489

596,602
Income related

- Equipment purchasing-related
subsidies
959,333

998,881
Asset related

- Other subsidies related with daily
operation
4,602,952

9,046,699
Income related

Additional deduction of input VAT, etc.
188,619,243

119,023,489
-


353,221,017

321,265,671







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

102
5
Notes to the consolidated financial statements (Cont’d)

(52)
Investment income







Six months ended 30 June


2026
2025






Losses on discount of financing receivables
eligible for derecognition (Note 5(4))
(6,180)
(234,105)

Losses on long-term equity investments
under equity method(Note 5(11))
(2,013,354)
(9,803,325)

Investment gains from disposal of long-term
equity investment
2,384,900
-

Investment (losses)/gain from forward
exchange settlement
(158,139)
10,631,603

Investment (losses)/gain from financial
assets held for trading
(461,372)
85,408


(254,145)
679,581



There is no significant restriction on the remittance of investment income of the Group.


(53)
Gains on changes in fair value







Six months ended 30 June


2026
2025




Derivative financial assets and derivative
financial liabilities -



Losses on forward exchange contracts
(3,900,257)

(7,182,998)

Financial assets at fair value through profit
or loss -


Structural deposits
5,509,151

179,240


1,608,894

(7,003,758)

(54)
Gains on disposal of assets









Six months ended 30 June

Amount recognised
in non-recurring
profit or loss As at
30 June 2026


2026

2025









Gains on disposal of assets
2,793,321

18,372,675

2,793,321





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

103
5
Notes to the consolidated financial statements (Cont’d)


(55)
Non-operating income









Six months ended 30 June

Amount recognised in
non-recurring profit or
loss As at 30 June
2026


2026

2025









Penalty income
856,559
910,938

856,559

Others
1,054,940
786,250

1,054,940


1,911,499
1,697,188

1,911,499

(56)
Non-operating expenses









Six months ended 30 June

Amount recognised in
non-recurring profit or
loss As at 30 June
2026


2026

2025









Losses on scrapping
of assets
793,842
-
793,842

Donations
2,000,000
5,032

2,000,000

Others
1,335,165
201,715

1,335,165


4,129,007
206,747

4,129,007





(57)
Income tax expenses




Six months ended 30 June


2026

2025






Current income tax calculated based
on tax law and related regulations
45,980,541
13,337

Deferred income tax
44,415,045
84,071,401


90,395,586
84,084,738




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

104
5
Notes to the consolidated financial statements (Cont’d)


(57)
Income tax expenses (Cont’d)


The reconciliation from income tax calculated based on the applicable tax rates and total
profit presented in the consolidated income statement to the income tax expenses is listed
as follows:




Six months ended 30 June


2026

2025






Total profit
831,695,897
817,684,775

Income tax calculated at applicable tax rates
124,754,385
122,652,716

Effect of different applicable tax rates
40,966,458
33,360,309

Tax credit
(391,696)
-

Additional deductions
(79,403,826)
(75,507,128)

Deductive loss and temporary differences of
the unrecognised deferred tax asset in
the current period
1,009,053
966,317

Non-deductible investment losses
2,955,718
1,470,499

Costs, expenses and losses not deductible
for tax purposes
505,494
1,142,025

Income tax expenses
90,395,586
84,084,738


(58)
Earnings per share


(a)
Basic earnings per share



Basic earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average number of
outstanding ordinary shares of the parent company:







Six months ended 30 June


2026

2025






Consolidated net profit attributable to ordinary
shareholders of the parent company
738,802,231

732,728,047

Weighted average number of ordinary shares
outstanding issued by the Company
854,581,922

860,455,004

Basic earnings per share
0.86

0.85






(b)
Diluted earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company adjusted based on the dilutive potential
ordinary shares by the adjusted weighted average number of outstanding ordinary shares
of the Company. As there were no dilutive potential ordinary shares as at 30 June 2026
(the six months ended 30 June 2025: Nil), diluted earnings per share equalled to basic
earnings per share.






JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

105
5
Notes to the consolidated financial statements (Cont’d)


(59)
Notes to the cash flow statement



The Group does not present cash flows on a net basis, and the significant cash flow items
are presented as follows:


(a)
Cash received relating to other operating activities




Six months ended 30 June


2026

2025






Government grants
173,454,791
208,694,864

Guarantees
25,034,174
43,240,153

Others
10,062,905
32,369,069


208,551,870
284,304,086

(b)
Cash paid relating to other operating activities




Six months ended 30 June


2026

2025






Research and
development expenses
536,928,606
391,730,406

Promotion expenses
193,697,090
383,162,063

Maintenance expenses
37,913,666
44,922,284


Advertising expenses
34,428,066
73,585,126

Guarantees
29,288,350
35,780,586

Consulting fees
10,384,947
31,116,397

Trademark royalties
8,560,973
10,261,304

Others
190,790,318
278,077,246


1,041,992,016
1,248,635,412

(c)
Cash received relating to other investing activities




Six months ended 30 June


2026

2025






Interest from cash at bank
66,244,608

74,707,091

Other interest
2,329,728

11,599,410


68,574,336

86,306,501

(d)
Cash paid relating to other financing activities



Six months ended 30 June


2026

2025






Payments of lease liabilities
15,035,882

12,377,597

Payment of treasury shares
-

170,000,000


15,035,882

182,377,597




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

106
5
Notes to the consolidated financial statements (Cont’d)


(60)
Supplementary information to the cash flow statement


(a)
Supplementary information to the cash flow statement



Reconciliation from net profit to cash flows from operating activities




Six months ended 30 June


2026
2025





Net profit
741,300,311
733,600,037

Add: Asset impairment losses
9,532,170
(42,736)

Credit impairment losses
772,026
2,295,627

Depreciation of fixed assets
583,438,289
552,829,786

Amortisation of intangible assets
244,718,270
231,412,924

Depreciation of right-of-use assets
40,718,016
40,592,333

Gains of long-term assets
(2,189,294)
(18,414,462)

Financial income
(45,153,234)
(56,039,252)

Investment loss / (Gains)
254,145
(679,581)

(Gains) /Losses on changes in fair value
(1,608,894)
7,003,758

Increase in deferred tax assets
(20,968,773)
(5,659,067)
Increase in deferred tax liabilities
65,383,818
89,730,468

(Increase) / Decrease in inventories
(173,321,933)
149,005,794

Increase in provisions
13,872,199
24,327,812

Increase in operating receivables
(69,369,634)
(1,474,752,408)

Decrease in operating payables
(790,425,441)
(349,545,446)

Decrease in other cash and cash equivalents
941,680
9,836,629

Net cash flows from operating activities
597,893,721
(64,497,784)






Net increase in cash and cash equivalents







Six months ended 30 June


2026

2025






Cash and cash equivalents at the end of
the period
12,108,243,916
11,781,003,829

Less: Cash and cash equivalents at the
beginning of the year
(13,491,154,200)

(12,475,176,009)

Net increase in cash and cash
equivalents
(1,382,910,284)

(694,172,180)


JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

107
5
Notes to the consolidated financial statements (Cont’d)
(60)
Supplementary information to the cash flow statement (Cont’d)
(b)
Changes in liabilities arising from financing activities

Bank borrowings
(including the current portion)
Lease liabilities
(including the current
portion)

Other Payables


Total






31 December 2025
1,950,920,551
136,262,865

105,797,267

2,192,980,683
Cash inflows from financing
activities
1,847,927,333
-

-

1,847,927,333
Cash outflows from financing
activities
(3,450,223,818)
(15,035,882)

(156,789)

(3,465,416,489)
Interest accrued in the current
period
2,072,667
1,894,142

156,149

4,122,958
Dividends accrued in the
current period
-
-

474,985,178

474,985,178
Changes that do not involve
cash receipts and payments
(27,723)
(64,534,299)

66,339,940

1,777,918
30 June 2026
350,669,010
58,586,826

647,121,745

1,056,377,581

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

108
5
Notes to the consolidated financial statements (Cont’d)

(60)
Supplementary information to the cash flow statement (Cont’d)

(c)
Cash and cash equivalents

30 June 2026
31 December 2025


Cash at bank available for payment at any
time
10,755,764,460
11,898,659,395
Cash at finance company available for
payment at any time
1,352,479,456
1,592,494,805

12,108,243,916
13,491,154,200

(i)
As in Note 5(1), other cash and cash equivalents of RMB26,196,044 as at 30 June 2026(31
December 2025: RMB27,137,724) was not included in cash and cash equivalents.


(61)
Foreign currency monetary items
30 June 2026
Amounts in
foreign
currencies
Translation
exchange rate
Amounts in RMB



Long-term borrowings-



USD
98,226
6.8109
669,010




Other payables-



USD
32,316,372
6.8109
220,103,578







220,772,588




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

109
5
Notes to the consolidated financial statements (Cont’d)

(62)
Lease

(a)
As a lessee

Six months ended 30 June
2026
2025


Interest expense on lease liabilities
1,894,142
2,988,976
Short-term lease expenses with simplified treatment
through profit or loss for the period
2,408,748
2,047,029
Total cash outflows related to leases
17,444,630
14,424,626

The leased assets leased by the Group include houses and buildings used in the course of
operation, and the lease term of houses and buildings is usually 1-5 years.
Right-of-use assets, see note 5(14); For lease liabilities, see note 5(31).

(b)
As a lessor

The Group leases out its premises, buildings and means of transport for lease terms ranging from
1 to 3 years to form an operating lease.
Operating leases

Gains and losses related to operating leases are presented as follows:


Six months ended 30 June
2026
2025



Rental income
98,562,591
98,802,662

According to the lease contract with the lessee, the undiscounted minimum lease collection amount
is as follows:

30 June 2026
31 December 2025


Within 1 year (including 1 year)
134,292,225
149,604,139
1 to 2 years (inclusive)
29,640,977
28,182,334
2 years to 3 years (inclusive)
13,982,919
10,771,072

177,916,121
188,557,545
For fixed assets leased out of operation, see Note 5(12).


JIANGLING MOTORS CORPORATION, LTD.


NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
110

6
Equity in other entities




(1)
Equity in subsidiaries





Structure of the Group





Subsidiaries
Main place of
business
Place of
registration
Registered
capital
Nature of business
Shareholding (%)
Method of
acquisition






Direct
Indirect











JMCS
Nanchang,
Jiangxi
Nanchang,
Jiangxi
50,000,000
Retail, wholesale and lease of
automobiles
100%
-
Set up by
investment

JMCH
Taiyuan,
Shanxi
Taiyuan,
Shanxi
1,323,793,174
Manufacture and sales of
automobiles
100%
-
Business
combinations
involving
enterprises not
under common
control

SZFJ
Shenzhen,
Guangdong
Shenzhen,
Guangdong
10,000,000
Retail, wholesale and lease of
automobiles
100%
-
Set up by
investment

GZFJ
Guangzhou,
Guangdong

Guangzhou,
Guangdong
10,000,000
Retail, wholesale and lease of
automobiles
100%
-
Set up by
investment

Jiangling Ford
(Shanghai)(a)
Shanghai
Shanghai
2,678,000,000
Retail, Technical consultation and
business information consultation
51%
-
Set up by
investment







JIANGLING MOTORS CORPORATION, LTD.


NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
111


6
Equity in other entities (Cont’d)


(1)
Equity in subsidiaries (Cont’d)


(a)
Subsidiaries with significant minority interests



The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies, the
proportion of minority interests in the Group’s consolidated shareholders’ equity, and the proportion of profit or loss attributable to minority shareholders
in the Group’s consolidated net profit, as follows:


Subsidiaries
Shareholding of
minority
shareholders

Total profit or loss
attributable to minority
shareholders for the period
ended 30 June 2026
Dividends paid to
minority shareholders for
the period ended 30 June
2026

Minority interests as
at 30 June 2026



Jiangling Ford (Shanghai)
49%
2,498,080
-
(305,701,729)



Key financial information of the above significant non-wholly owned subsidiaries is presented below.

30 June 2026
Current
assets

Non-current
assets

Total assets

Current
liabilities

Non-current
liabilities
Total liabilities




Jiangling Ford (Shanghai)
247,532,467
-
247,532,467
871,236,779
176,767
871,413,546


Six months ended 30 June 2026

Revenue

Net loss

Total
comprehensive
income

Cash flows from
operating activities




Jiangling Ford (Shanghai)
12,057,340
5,098,122
5,098,122
(193,597,515)



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

112
6
Equity in other entities (Cont’d)


(2)
Equity in associates


(a)
General information of significant associates



The Group determines the significant associates by taking into account factors such as whether the
associates are listed companies, the proportion of their carrying amounts to the Group’s consolidated
total assets, and the proportion of the investment income from long-term equity investments under
equity method to the Group’s consolidated net profit, as set out below:



Place of registration

Shareholding (%)

Direct
Indirect






Associate -






The Power Company

Taiyuan, Shanxi

40%
-

(b)
Summarised financial information for significant associates




30 June 2026

31 December 2025
The Power Company

The Power Company






Current assets
125,021,913
129,114,691

Non-current assets
413,605,903
414,895,371

Total assets
538,627,816
544,010,062





Current liabilities
80,462,099
120,165,219

Non-current liabilities
40,288,625
330,626

Total liabilities
120,750,724
120,495,845






Equity
417,877,092
423,514,217






Share of net assets based on shareholding (i)
167,150,837
169,405,687

Adjustments




- Unrealised profits arising from internal
transactions
(13,000,992)
(13,242,488)

- Others (ii)
20,853,323
20,853,323






Carrying amount of equity investments in
associates
175,003,168
177,016,522








JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

113
6
Equity in other entities (Cont’d)


(2)
Equity in associates (Cont’d)


(b)
Summarised financial information for significant associates (Cont’d)







Six months ended 30 June


2026

2025


The Power Company


The Power Company







Revenue
43,361,423


42,666,259

Net loss
(5,900,419)


(6,102,629)

Other comprehensive
income
-


-

Total comprehensive loss
(5,900,419)


(6,102,629)







Dividends received from
associates by the Group
-


-






(i)
The Group calculated the shares of net assets in proportion of the shareholdings and based on the
amount attributable to the parent company of the associates in their consolidated financial
statements. The amount in the consolidated financial statements of associates considers the fair
value of identifiable assets and liabilities at the time of acquisition of the investments and the impact
of adjustments to uniform accounting policies. None of the assets involved in transactions between
the Group and associates contribute to business.


(ii)
Other adjustments were mainly the remeasurement of fair value of remaining equity in the
consolidated financial statements, which resulted from the loss of control over the original
subsidiary due to the disposal of part of the equity investment.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

114
7
Segment information



Revenue and profits of the Group mainly arise from production and domestic sales of
automobiles, and the primary assets of the Group are all located in China. Management of
the Group assesses the operating performance of the Group as a whole. Therefore, no
segment report is prepared for the current period.

As at 30 June 2026, the revenue obtained from a single customer of the Group accounted
for more than 10% of the Group’s revenue, amounting to RMB8,757,404,627, or 45.23%
(the six months ended 30 June 2025: 33.24% ), of the Group’s revenue.

8
Related parties and related party transactions


(1)
Information of major shareholders


(a)
General information of major shareholders




Type of
enterprise
Place of
registration
Legal
representative
Nature of business
Code of organisation






JIC
State-owned
enterprise
Nanchang,
China
Qiu Tiangao
Investment and asset
management 91360125MA38LUR91F
Ford
Foreign
enterprise
United
States
William Clay Ford,
Jr.
Manufacture and sales
of automobiles
N/A


(b)
Registered capital and changes in major shareholders



31 December
2025
Increase in the
current period
Decrease in the
current period
30 June 2026






JIC
1,000,000,000
-
-
1,000,000,000

Ford
USD 42,000,000
-
-
USD 42,000,000


(c)
The percentages of shareholding and voting rights in the Company held by major
shareholders




30 June 2026

31 December 2025


Shareholding
(%)
Voting rights
(%)

Shareholding
(%)
Voting rights
(%)








JIC
41.03%
41.03%

41.03%
41.03%

Ford
32.00%
32.00%

32.00%
32.00%

(2)
Information of subsidiaries



The general information and other related information of subsidiaries are set out in Note
6(1).


(3)
Information of associates



The information of associates is set out in 6(1).




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

115
8
Related parties and related party transactions (Cont’d)


(4)
Information of other related parties




Relationship with the Group




JMCG
Shareholder of JIC

Chongqing Changan Automobile Co., Ltd.(hereinafter
referred to as “Chongqing Changan”)
Shareholder of JIC

Jiangling Motor Group (Nanchang) Fushan Energy
Co., LTD
Controlled by JMCG

JMCF
Controlled by JMCG

JMCG Property Management Co.
Controlled by JMCG

JMCG Jiangxi Engineering Construction Co., Ltd.
Controlled by JMCG

Jiangxi Jiangling Chassis Co.,Ltd.
Controlled by JMCG

Jiangling Aowei Aotomobile Spare Part Co.,Ltd.
Controlled by JMCG

Jiangxi JMCG Boya brake system Co., Ltd.
Controlled by JMCG

Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd
Controlled by JMCG

JMCG Jingma Motors Co., Ltd.
Controlled by JMCG

Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.
Controlled by JMCG

Jiangxi Jiangling Lear Interior System Co.,Ltd.
Controlled by JMCG

Jiangxi JMCG Specialty Vehicles Corporation, Ltd.
Controlled by JMCG

Jiangxi JMCG Specialty Vehicles Sales Corporation,
Ltd.
Controlled by JMCG

Jiangxi JMCG Shangrao Industrial Co.,Ltd.
Controlled by JMCG

Jiangxi JMCG Industry Co.,Ltd.
Controlled by JMCG

Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd.
Controlled by JMCG

Jiangxi Jiangling Overseas Automobile Co., Ltd.
Controlled by JMCG

Jiangxi Lingge Non-ferrous Metal Die-casting Co.,Ltd.
Controlled by JMCG

Jiangxi Lingrui Recycling Resources Development
Corporation
Controlled by JMCG

Jiangxi Mingfang Auto Parts Industry Co., Ltd
Controlled by JMCG

Jiangxi Fuxiang Vehicle Co., Ltd.
Controlled by JMCG

Jiangxi ISUZU Engine Co.,Ltd.
Controlled by JMCG

Jiangxi ISUZU Co., Ltd.
Controlled by JMCG

Jiujiang Fuwantong Vehicle Co., Ltd.
Controlled by JMCG

Nanchang Hengou Industry Co., Ltd.
Controlled by JMCG

Nanchang Jiangling Hua Xiang Auto Components
Co.,Ltd.
Controlled by JMCG

Nanchang JMCG Frame Co.,Ltd.
Controlled by JMCG

Nanchang JMCG Liancheng Auto Component
Co.,Ltd.
Controlled by JMCG

Nanchang JMCG Shishun Logistics Co., Ltd.
Controlled by JMCG

Nanchang Lianda Machinery Co.,Ltd.
Controlled by JMCG

Nanchang Unistar Electric & Electronics Co.,Ltd.
Controlled by JMCG

Ford Motor Company Limited
Controlled by Ford

Ford Global Technologies, LLC
Controlled by Ford

Ford Motor Co. Thailand Ltd.
Controlled by Ford

Ford Trading Company LLC
Controlled by Ford

Ford Vietnam Limited
Controlled by Ford

Ford Electric Mach Technology (Nanjing) Co., Ltd.
Controlled by Ford

Ford Motor (China) Co., Ltd.
Controlled by Ford

Ford Motor Research & Engineering (Nanjing) Co.,
Ltd.
Controlled by Ford

Ford Motor Sales & Service (Shanghai) Co., Ltd.
Controlled by Ford



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

116
8
Related parties and related party transactions (Cont’d)


(4)
Information of other related parties




Relationship with the Group




Changan Ford Automobile Co.,Ltd.
Joint venture of Ford

Anhui Wanyou Automobile Sales service Co. LTD
Controlled by Ultimate Holding Company
of Chongqing Changan

Beijing Baiwang Changfu Vehicle Sales & Service Co.,
Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

Beijing Beifang Changfu Vehicle Sales & Service Co.,
Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

Chengdu Wanxing Vehicle Sales & Service Co., Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

Guizhou Wanfu Vehicle Sales & Service Co., Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

Harbin Dongan Automotive Engine Manufacturing
Co., Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

Wanyou Automobile Investment Co., Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

Yunan Wanfu Vehicle Sales & Service Co., Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

China Changan Group Tianjin Sales Co.,Ltd
Controlled by Ultimate Holding Company
of Chongqing Changan

Chongqing Anfu Vehicle Marketing Co., Ltd.
Controlled by Ultimate Holding Company
of Chongqing Changan

Jiangxi Zhengxing Automotive Parts Manufacturing
Co., Ltd.
Joint venture of JMCG

Nanchang Huaxiang Automotive Interior & Exterior
Components Co., Ltd.
Joint venture of JMCG

Nanchang Yinlun Heat-exchanger Co.,Ltd.
Joint venture of JMCG

Bosch Electric Drive Systems (Nanchang) Co., Ltd.
Associate of JMCG

Dibao transportation equipment (Nanchang) Co., Ltd
Associate of JMCG

Jiangling Motor Holdings Co., Ltd
Associate of JMCG

Jiangxi Jiangling Group Special Vehicle Co.,Ltd.
Associate of JMCG

Jiangxi Jingwei Hirain Technologies Co., Inc.
Associate of JMCG

Jiangxi Lingyun Automobile Industry Technology
Co.,Ltd
Associate of JMCG

Jiangxi Zhonglian Intelligent Logistics Co., Ltd.
Associate of JMCG

Magna PT Powertrain (Jiangxi) Co., Ltd
Associate of JMCG

Nanchang Baojiang Steel Processing Distribution
Co.,Ltd.
Associate of JMCG

Faurecia Emissions Control Technologies
(Nanchang) Co.,Ltd.
Associate of JMCG

Nanchang JMCG SMR Huaxiang Mirror Co., Ltd.
Associate of JMCG

Nanchang JMCG Xinchen Auto Component Co.,Ltd.
Associate of JMCG







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

117
8
Related parties and related party transactions (Cont’d)


(5)
Related party transactions


(a)
Purchase and sales of goods, provision and receipt of services



Purchase of goods:





Six months ended 30 June


Nature of related
party transactions
2026
2025





Jiangxi Jiangling Chassis Co.,Ltd.
Purchase of
automobile parts
485,429,429
456,223,430

Magna PT Powertrain (Jiangxi) Co., Ltd
Purchase of
automobile parts
469,027,753
615,426,603

Jiangxi Jiangling Lear Interior System
Co.,Ltd.
Purchase of
automobile parts
401,273,447
351,786,847

Nanchang
Baojiang
Steel
Processing
Distribution Co.,Ltd.
Purchase of raw
materials
395,894,180
393,721,342

Jiangxi Zhonglian Intelligent Logistics Co.,
Ltd.
Purchase of
automobile parts
352,556,470
356,907,375

Nanchang Huaxiang Automotive Interior &
Exterior Components Co., Ltd.
Purchase of
automobile parts
341,494,851
-

Jiangxi Jiangling Special Purpose Vehicle
Co.,Ltd.
Purchase of
automobile parts
314,810,597
324,790,233

Nanchang
Jiangling
Hua
Xiang
Auto
Components Co.,Ltd.
Purchase of
automobile parts
255,363,975
475,708,044

Faurecia Emissions Control Technologies
(Nanchang) Co.,Ltd.
Purchase of
automobile parts
168,363,621
109,443,670

Nanchang
JMCG
Liancheng
Auto
Component Co.,Ltd.
Purchase of
automobile parts
143,273,040
178,172,213

Harbin
Dongan
Automotive
Engine
Manufacturing Co., Ltd.
Purchase of
automobile parts
122,556,192
97,181,277

Jiangxi
Lingyun
Automobile
Industry
Technology Co.,Ltd
Purchase of
automobile parts
113,193,189
99,583,790

Jiangxi Jingwei Hirain Technologies Co.,
Inc.
Purchase of
automobile parts
111,357,094
72,032,364

Nanchang Unistar Electric & Electronics
Co.,Ltd.
Purchase of
automobile parts
109,260,278
102,115,941

Nanchang JMCG Shishun Logistics Co., Ltd.
Purchase of
automobile parts
104,840,082
98,311,283

Bosch Electric Drive Systems (Nanchang)
Co., Ltd.
Purchase of
automobile parts
68,274,636
7,826,726

Nanchang Yinlun Heat-exchanger Co.,Ltd.
Purchase of
automobile parts
61,135,159
58,949,235

Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd.
Purchase of
automobile parts
56,404,128
59,494,853

Dibao transportation equipment (Nanchang)
Co., Ltd
Purchase of
automobile parts
52,481,374
39,406,356

Jiangxi Lingge Non-ferrous Metal Die-
casting Co.,Ltd.
Purchase of
automobile parts
40,251,753
34,941,067

Ford
Purchase of
automobile parts
33,281,597
105,699,063

Jiangxi Mingfang Auto Parts Industry Co.,
Ltd
Purchase of
automobile parts
28,393,705
11,020,726

Changan Ford Automobile Co.,Ltd.
Purchase of
automobile parts
25,640,911
51,634,635

Jiangxi JMCG Boya brake system Co., Ltd.
Purchase of
automobile parts
24,615,623
18,123,765

Nanchang Lianda Machinery Co.,Ltd.
Purchase of
automobile parts
19,591,890
16,682,458



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

118
8
Related parties and related party transactions (Cont’d)


(5)
Related party transactions (Cont’d)


(a)
Purchase and sales of goods, provision and receipt of services (Cont’d)



Purchase of goods (Cont’d):



Six months ended 30 June


Natue of related
party transactions
2026
2025





Jiangxi
JMCG
Specialty
Vehicles
Corporation, Ltd.
Purchase of
automobile parts
14,527,279
29,024,057

Jiangxi JMCG Shangrao Industrial Co.,Ltd.
Purchase of
automobile parts
13,727,454
14,096,083

Jiangling Motor Group (Nanchang) Fushan
Energy Co., LTD
Purchase of raw
materials
12,965,615
14,399,011

Jiangxi Jiangling group Fuxin Auto Parts
Co., Ltd
Purchase of
automobile parts
10,758,249
8,510,953

Jiangling Aowei Aotomobile Spare Part
Co.,Ltd.
Purchase of
automobile parts
5,857,630
5,264,524

Jiangxi Jiangling Group Special Vehicle
Co.,Ltd.
Purchase of
automobile parts
5,641,484
19,227,733

Jiangxi
Zhengxing
Automotive
Parts
Manufacturing Co., Ltd.
Purchase of
automobile parts
5,255,680
-

Nanchang JMCG Xinchen Auto Component
Co.,Ltd.
Purchase of
automobile parts
2,896,173
3,157,004

Ford Motor Co. Thailand Ltd.
Purchase of
automobile parts
2,214,877
1,406,550

Shanxi Yunnei Power Group Co., Ltd.
Purchase of
automobile parts
1,066,375
-

Jiangling Motor Holdings Co., Ltd
Purchase of
automobile parts
723,187
1,315,804

Nanchang JMCG Frame Co.,Ltd.
Purchase of
automobile parts
342,791
1,831,595

Jiangxi ISUZU Engine Co.,Ltd.
Purchase of
automobile parts
560
1,429,344

JMCG
Purchase of
automobile parts
-
2,511,812



4,374,742,328
4,237,357,766






The Group purchases goods from related parties based on the agreed price between the two
parties as the pricing basis.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

119
8
Related parties and related party transactions (Cont’d)


(5)
Related party transactions (Cont’d)


(a)
Purchase and sales of goods, provision and receipt of services (Cont’d)



Receipt of services:





Six months ended 30 June


Nature of related party
transactions
2026
2025




Nanchang JMCG Shishun Logistics
Co., Ltd.
Transportation, removal
fee, etc.
159,911,027
155,311,266

Ford Global Technologies, LLC
Technical development
60,155,108
86,110,654

Ford
Motor
Sales
&
Service
(Shanghai) Co., Ltd.
Distribution and promotion
56,598,047
-

Ford
Trademark management
fees, Personnel costs,
etc.
29,020,309
41,545,223

Jiangxi
Zhonglian
Intelligent
Logistics Co., Ltd.
Cartage fee, storage fee, et
c.
27,641,909
29,651,515

Jiangxi JMCG Industry Co.,Ltd.
Meals
16,587,449
16,289,997

Ford Motor Research & Engineering
(Nanjing) Co., Ltd.
Design fee, Personnel
costs
12,667,875
66,182,110

Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd.
Agency fee, advertising
fee, etc.
6,757,098
6,740,642

Ford Motor (China) Co., Ltd.
Design fee, Personnel
costs, etc.
5,801,773
36,140,632

JMCG
Jiangxi
Engineering
Construction Co., Ltd.
Engineering construction
5,673,787
4,742,946

JMCG Property Management Co.
Property fees, etc.
3,955,468
6,669,045

JMCG
Labour fee, rental fee, etc.
3,624,107
3,371,580

Jiangxi Jingwei Hirain Technologies
Co., Inc.
Design fees
2,858,100
2,298,200

Bosch
Electric
Drive
Systems
(Nanchang) Co., Ltd.
Design fees
1,528,050
-

Chongqing
Changan
Automobile
Co., Ltd.
Personnel costs
1,428,577
1,285,866

Chongqing Anfu Vehicle Marketing
Co., Ltd.
Promotion
814,980
1,936,652

China Changan Group Tianjin Sales
Co.,Ltd
Promotion
502,076
1,864,600

Guizhou Wanfu Vehicle Sales &
Service Co., Ltd.
Promotion
341,212
1,027,748

Magna PT Powertrain (Jiangxi) Co.,
Ltd
Design fee, experimental
costs
-
1,914,618


395,866,952
463,083,294




The Group’s pricing on services received from related parties is based on the agreed price by both
parties.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

120
8
Related parties and related party transactions (Cont’d)


(5)
Related party transactions (Cont’d)


(a)
Purchase and sales of goods, provision and receipt of services (Cont’d)



Sales of goods and provision of services:





Six months ended 30 June


Nature of related party
transactions
2026
2025






Jiangxi Jiangling Motors Imp. &
Exp. Co., Ltd.
Sales of vehicles and
accessories, etc.
8,657,360,088
6,011,263,897

Jiangxi JMCG Specialty Vehicles
Sales Corporation, Ltd.
Sales of vehicles
101,574,718
103,335,709

JMCG Jingma Motors Co., Ltd.
Sales of vehicles and
accessories
70,754,780
51,445,265

Jiangxi Lingrui Recycling
Resources Development
Corporation
Sales of waste
materials, etc.
37,233,143
35,741,568

Chongqing Anfu Vehicle
Marketing Co., Ltd.
Sales of vehicles and
accessories
29,790,066
60,329,061

Nanchang Hengou Industry Co.,
Ltd.
Sales of accessories,
26,624,147
15,439,211

Yunan Wanfu Vehicle Sales &
Service Co., Ltd.
Sales of vehicles and
accessories
25,041,170
-

Jiangxi Jiangling Group Special
Vehicle Co.,Ltd.
Sales of vehicles and
accessories
21,567,230
10,849,292

Chengdu Wanxing Vehicle Sales
& Service Co., Ltd.
Sales of vehicles and
accessories
20,686,397
28,676,309

Jiangxi Jiangling Chassis
Co.,Ltd.
Sales of accessories,
19,629,963
18,339,260

Nanchang Jiangling Hua Xiang
Auto Components Co.,Ltd.
Sales of accessories,
19,120,874
13,227,215

Jiangxi JMCG Specialty Vehicles
Corporation, Ltd.
Sales of vehicles and
accessories
18,055,690
61,861,871

Guizhou Wanfu Vehicle Sales &
Service Co., Ltd.
Sales of vehicles and
accessories, etc.
13,492,611
21,092,325

Beijing Beifang Changfu Vehicle
Sales & Service Co., Ltd.
Sales of vehicles and
accessories, etc.
12,218,081
230,857

Jiangxi Jiangling Lear Interior
System Co.,Ltd.
Sales of accessories,
10,240,847
8,478,228

China Changan Group Tianjin
Sales Co.,Ltd
Sales of vehicles and
accessories
9,503,723
23,377,989

Nanchang JMCG SMR Huaxiang
Mirror Co., Ltd.
Sales of accessories,
9,372,436
12,793,698

Jiangxi ISUZU Co., Ltd.
Sales of accessories,
etc.
9,106,313
7,060,132

Jiangxi Zhonglian Intelligent
Logistics Co., Ltd.
Sales of accessories,
9,012,934
10,533,862

Jiangxi Jiangling Special
Purpose Vehicle Co.,Ltd.
Sales of vehicles and
accessories
7,753,811
2,446,876

Anhui Wanyou Automobile Sales
service Co. LTD
Sales of vehicles and
accessories
6,476,614
-

Nanchang JMCG Liancheng
Auto Component Co.,Ltd.
Sales of accessories,
5,661,202
7,108,114

Wanyou Automobile Investment
Co., Ltd.
Sales of vehicles and
accessories
4,682,357
-

Jiangxi JMCG Industry Co.,Ltd.
Sales of accessories
and waste materials
4,411,270
4,011,751

Beijing Baiwang Changfu Vehicle
Sales & Service Co.,Ltd.
Sales of vehicles and
accessories, etc.
3,541,976
193,894







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

121

8
Related parties and related party transactions (Cont’d)


(5)
Related party transactions (Cont’d)


(a)
Purchase and sales of goods, provision and receipt of services (Cont’d)



Sales of goods and provision of services(Cont’d):





Six months ended 30 June


Nature of related
party transactions
2026

2025

Jiangxi Fuxiang Vehicle Co., Ltd.
Sales of vehicles and
accessories, etc.
2,388,186

-

Jiangxi Jiangling Overseas
Automobile Co., Ltd.
Sales of vehicles and
accessories, etc.
2,031,816

-

Jiangxi ISUZU Engine Co.,Ltd.
Sales of accessories,
1,417,314

7,991,895

Jiujiang Fuwantong Vehicle Co.,
Ltd.
Sales of vehicles and
accessories
1,389,451

-



9,160,139,208

6,515,828,279



The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.

(b)
Leases


(i)
The lease income recognised in the current period with the Group as the lessor:





Six months ended 30 June

Name of the lessee
Type of the leased asset
2026

2025







Jiangxi Zhengxing Automotive
Parts Manufacturing Co., Ltd.
Equipment
653,504
-

JMCG Jingma Motors Co., Ltd.
Equipment
181,540
-

Jiangling Motor Holdings Co., Ltd
Buildings
-
8,935

Jiangxi ISUZU Co., Ltd.
Buildings
-
2,945



835,044
11,880



(ii)
Interest costs on lease liabilities in the current period with the Group as the lessee:





Six months ended 30 June

Type of the leased asset
2026

2025







Jiangxi Jiangling Motors Imp.
& Exp. Co., Ltd.
Buildings
241,956
455,655

Ford Motor (China) Co., Ltd.
Buildings
7,666
10,804

JMCG
Buildings
-
84,749


249,622
551,208

(c)
Guarantee received



Guarantor
Guaranteed
amount
Starting date
Ending date
Fully performed or not





JMCG
669,010
14 February 2025
14 February 2028
Not fully performed


As at 30 June 2026, JMCG provided guarantees for some bank borrowings of the Group, with a maximum
guarantee limit of USD196,453. As at 30 June 2026, JMCG provided borrowing guarantee to the bank
borrowing of USD98,226, equivalent to RMB669,010 (31 December 2025: USD130,968 equivalent to
RMB920,551) for the Group.


JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

122
8
Related parties and related party transactions (Cont’d)

(5)
Related party transactions (Cont’d)


(d)
Purchase of assets




Six months ended 30 June

Nature of related party
transactions
2026

2025







Jiangxi Jiangling Special
Purpose Vehicle Co.,Ltd.
Purchase of fixed assets
5,422,200
19,211,155

Nanchang Jiangling Hua Xiang
Auto Components Co.,Ltd.
Purchase of fixed assets
1,364,883
-

Magna PT Powertrain (Jiangxi)
Co., Ltd
Purchase of fixed assets
654,300
1,712,116

Nanchang JMCG Liancheng
Auto Component Co.,Ltd.
Purchase of fixed assets
-
3,890,000

Jiangxi Jiangling Chassis
Co.,Ltd.
Purchase of fixed assets
-
2,100,000



7,441,383
26,913,271




The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.


(e)
Provision of technology and distribution service





Six months ended 30 June


Nature of related
party transactions
2026
2025






Ford Global Technologies, LLC
Technical service
358,547,430
15,853,895

Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd.
Technical service
100,044,539
2,750,566

Ford Motor Company Limited
Technical service
11,757,601
-

Ford Electric Mach Technology
(Nanjing) Co., Ltd.
Technical service
5,758,619
72,814,268

Ford Vietnam Limited
Technical service
2,377,817
1,452,183

Ford Trading Company LLC
Technical service
1,140,000
-

Ford Motor (China) Co., Ltd.
Distribution service
-
13,355,759



479,626,006
106,226,671






The Group’s pricing on technology provided to related parties is based on the agreed price by
both parties.

(f)
Remuneration of key management




Six months ended 30 June


2026

2025






Remuneration of key management
8,245,277
7,897,859


(g)
Interest income


Six months ended 30 June


2026

2025






JMCF
2,262,723
7,873,071



Cash at bank of the Group deposited with JMCF was calculated based on the bank annual
interest rate for RMB deposit of 0.85% to 1.4% over the same period (the six months ended 30
June 2025: 0.85% to 1.55%).


JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

123
8
Related parties and related party transactions (Cont’d)


(5)
Related party transactions (Cont’d)


(h)
Interest expenses




Six months ended 30 June


2026

2025






Jiangxi Zhonglian Intelligent Logistics Co., Ltd.
120,000

-

Nanchang JMCG Shishun Logistics Co., Ltd.
30,000

-

Ford Motor (China) Co., Ltd.
-

2,629,588


150,000

2,629,588


(i)
Funds borrowed in




Six months ended 30 June


2026
2025





Ford Motor (China) Co., Ltd.
-
85,750,000








JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

124
8
Related parties and related party transactions (Cont’d)


(6)
Receivables from and payables to related parties



Accounts receivable




30 June 2026

31 December 2025


Amount

Provision
for bad
debts

Amount

Provision
for bad
debts







Jiangxi Jiangling Motors Imp.
& Exp. Co., Ltd.

5,080,317,525

10,575,729

4,616,206,969
9,532,031

JMCG Jingma Motors Co., Ltd.
51,157,944
177,055
47,279,252
151,735

Jiangxi JMCG Specialty
Vehicles Sales Corporation,
Ltd.
24,709,195
19,176
3,731,251
739

Jiangxi Zhonglian Intelligent
Logistics Co., Ltd.
10,042,122
30,126
16,607,018
49,821

Nanchang Jiangling Hua Xiang
Auto Components Co.,Ltd.
6,876,492
20,629
15,544,213
46,633

Jiangxi Jiangling Chassis
Co.,Ltd.
5,106,679
15,320
-
-

Jiangxi Jiangling Lear Interior
System Co.,Ltd.
3,787,830
11,363
6,755,350
20,266

Jiangxi ISUZU Co., Ltd.
3,706,563
11,589
7,866,057
23,598

Nanchang JMCG SMR
Huaxiang Mirror Co., Ltd.
3,174,719
9,524
-
-

Jiangxi ISUZU Engine Co.,Ltd.
2,074,215
30,289
2,549,343
7,648

Nanchang JMCG Liancheng
Auto Component Co.,Ltd.
1,972,719
5,918
3,065,801
9,197

Ford Global Technologies,
LLC
1,135,910
3,408
-
-

Jiangxi JMCG Industry
Co.,Ltd.
449,795
1,349
1,083,907
3,252

Jiangxi JMCG Specialty
Vehicles Corporation, Ltd.
149,399
448
4,907,660
1,814

Ford Trading Company LLC
-
-
1,820,000
5,460



5,194,661,107

10,911,923

4,727,416,821
9,852,194

Other receivables





30 June 2026

31 December 2025

Amount

Provision
for bad
debts

Amount

Provision for
bad debts





Jiangxi Jiangling Motors Imp.
& Exp. Co., Ltd.
6,101,420

20,479
8,678,667

25,931
JMCG
1,355,843

4,551

51,000

153
Jiangxi Zhengxing Automotive
Parts Manufacturing Co., Ltd.
1,107,690

3,718

373,230

1,120
Ford Motor (China) Co., Ltd.
1,028,081

-
1,885,311

5,656
Ford Motor Sales & Service
(Shanghai) Co., Ltd.
-
-
1,343,694

4,031


9,593,034

28,748

12,331,902

36,891



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

125
8
Related parties and related party transactions (Cont’d)

(6)
Receivables from and payables to related parties (Cont’d)

Advances to suppliers





30 June 2026

31 December 2025



Nanchang Baojiang Steel Processing
Distribution Co., Ltd.
139,232,552
91,759,002

Financing receivables




30 June 2026
31 December 2025


JMCG Jingma Motors Co., Ltd.
6,839,924

2,468,962
Jiangxi ISUZU Co., Ltd.
500,000

-
Jiangxi ISUZU Engine Co.,Ltd.
138,519

712,751
Jiangxi Jiangling Motors Imp. & Exp. Co.,
Ltd.
-

147,945,413
Jiangxi JMCG Specialty Vehicles
Corporation, Ltd.
-

6,000

7,478,443

151,133,126




Cash at bank






30 June 2026

31 December 2025




JMCF
1,352,479,456

1,592,494,805








JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

126
8
Related parties and related party transactions (Cont’d)





(6)
Receivables from and payables to related parties (Cont’d)






Accounts payable










30 June 2026

31 December 2025






Jiangxi Jiangling Lear Interior System Co.,Ltd.
378,878,342

419,610,763

Jiangxi Jiangling Chassis Co.,Ltd.
331,430,620

281,190,452

Nanchang Jiangling Hua Xiang Auto Components
Co.,Ltd.
283,169,260

339,272,999

Jiangxi Zhonglian Intelligent Logistics Co., Ltd.
269,348,187

298,526,234

Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd.
267,014,846

258,868,938

Nanchang Huaxiang Automotive Interior & Exterior
Components Co., Ltd.
212,194,415

264,555,517

Magna PT Powertrain (Jiangxi) Co., Ltd
159,155,425

230,896,819

Nanchang JMCG Liancheng Auto Component
Co.,Ltd.
110,079,747

127,011,360

Faurecia Emissions Control Technologies (Nanchang)
Co.,Ltd.
99,990,924

90,135,188

Nanchang JMCG Shishun Logistics Co., Ltd.
85,748,139

102,537,845

Dibao transportation equipment (Nanchang) Co., Ltd
83,187,087

87,101,643

Jiangxi Lingyun Automobile Industry Technology
Co.,Ltd
71,142,737

37,021,732

Harbin Dongan Automotive Engine Manufacturing Co.,
Ltd.
70,543,404

79,587,095

Ford
56,189,404

101,603,052

Nanchang Yinlun Heat-exchanger Co.,Ltd.
41,177,326

49,496,828

Bosch Electric Drive Systems (Nanchang) Co., Ltd.
40,891,163

50,329,567

Nanchang JMCG SMR Huaxiang Mirror Co., Ltd.
36,319,924

44,866,960

Nanchang Unistar Electric & Electronics Co.,Ltd.
32,298,898

30,110,251

Jiangxi JMCG Specialty Vehicles Corporation, Ltd.
30,668,307

20,129,520

Jiangxi Jingwei Hirain Technologies Co., Inc.
27,672,556

37,415,298

Jiangxi Mingfang Auto Parts Industry Co., Ltd
16,856,355

13,960,106

Jiangxi JMCG Boya brake system Co., Ltd.
16,513,877

17,024,842

Nanchang Lianda Machinery Co.,Ltd.
13,898,069

18,239,104

Changan Ford Automobile Co.,Ltd.
11,860,475

11,170,263

Jiangxi Jiangling Group Special Vehicle Co.,Ltd.
9,876,061

23,989,369

Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd
6,097,003

4,913,122

Jiangling Aowei Aotomobile Spare Part Co.,Ltd.
6,073,499

7,000,633

Jiangxi Lingge Non-ferrous Metal Die-casting Co.,Ltd.
5,857,864

9,958,459

Jiangxi Zhengxing Automotive Parts Manufacturing
Co., Ltd.
5,657,189

5,306,616

Jiangxi JMCG Shangrao Industrial Co.,Ltd.
4,250,374

4,470,727

Nanchang JMCG Xinchen Auto Component Co.,Ltd.
3,031,541

3,463,250

JMCG
3,005,892

3,005,892

JMCG Jingma Motors Co., Ltd.
2,755,602

2,650,990

Ford Motor Co. Thailand Ltd.
2,073,411

-

Jiangling Motor Group (Nanchang) Fushan Energy Co.,
LTD
1,040,868

3,838,607

Jiangxi ISUZU Engine Co.,Ltd.
190,473

5,714,745


2,796,139,264

3,084,974,786



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

127
8
Related parties and related party transactions (Cont’d)


(6)
Receivables from and payables to related parties (Cont’d)






Other payables










30 June 2026

31 December 2025





Ford
135,539,633
135,932,978

Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.
110,552,968

71,280,639

Ford Global Technologies, LLC
87,408,675

104,008,803

Ford Motor Research & Engineering (Nanjing) Co., Ltd.
59,950,338

101,729,209

Ford Motor (China) Co., Ltd.
48,035,191

77,322,435

Ford Motor Sales & Service (Shanghai) Co., Ltd.
45,862,796

21,704,280

Nanchang JMCG Shishun Logistics Co., Ltd.
41,537,456

65,385,503

Nanchang Jiangling Hua Xiang Auto Components
Co.,Ltd.
23,112,507

32,534,219

Jiangxi Jingwei Hirain Technologies Co., Inc.
15,139,956

13,318,646

JMCG
10,435,907

8,449,024

Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd.
10,285,937

9,893,430

Jiangxi JMCG Specialty Vehicles Corporation, Ltd.
5,861,648

5,979,373

Chongqing Anfu Vehicle Marketing Co., Ltd.
5,856,174

8,611,595

Chengdu Wanxing Vehicle Sales & Service Co., Ltd.
4,471,623

3,358,444

Chongqing Changan Automobile Co., Ltd.
4,120,536

2,691,958

Jiangxi Jiangling Lear Interior System Co.,Ltd.
3,858,520

2,366,149

Jiangxi Jiangling Chassis Co.,Ltd.
3,740,125

6,101,537

Guizhou Wanfu Vehicle Sales & Service Co., Ltd.
3,701,535

2,365,316

JMCG Property Management Co.
3,673,584

22,149,851

Yunan Wanfu Vehicle Sales & Service Co., Ltd.
3,445,909

900,239

Jiangxi JMCG Industry Co.,Ltd.
2,807,617

3,230,883

JMCG Jiangxi Engineering Construction Co., Ltd.
2,720,247

12,843,807

Bosch Electric Drive Systems (Nanchang) Co., Ltd.
2,657,173

1,365,331

Jiangxi Zhonglian Intelligent Logistics Co., Ltd.
2,077,742

7,271,904

Nanchang JMCG Liancheng Auto Component Co.,Ltd.
1,912,719

1,890,523

Nanchang Unistar Electric & Electronics Co.,Ltd.
1,355,206

1,246,983

Magna PT Powertrain (Jiangxi) Co., Ltd
684,925

1,311,073

Jiangxi Jiangling Group Special Vehicle Co.,Ltd.
609,825

1,547,766

China Changan Group Tianjin Sales Co.,Ltd
572,876

1,158,724

Jiangxi JMCG Boya brake system Co., Ltd.
538,146

1,646,490

Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.
410,264

8,199,190


642,937,758

737,796,302






Contract liabilities










30 June 2026

31 December 2025






Ford Global Technologies, LLC
43,382,188

148,989,875

Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.
19,619,035

21,463,072

Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd.
16,465,170

872,161

Ford Motor Company Limited
5,352,399

-

Jiangxi JMCG Specialty Vehicles Corporation, Ltd.
3,233,836

56,453

Yunan Wanfu Vehicle Sales & Service Co., Ltd.
3,110,967

19,399

Ford Electric Mach Technology (Nanjing) Co., Ltd.
2,810,116

8,568,735

Chongqing Anfu Vehicle Marketing Co., Ltd.
2,631,122

275,471

Guizhou Wanfu Vehicle Sales & Service Co., Ltd.
2,185,256

299,778

Chengdu Wanxing Vehicle Sales & Service Co., Ltd.
1,450,742

467,299

Beijing Baiwang Changfu Vehicle Sales & Service
Co.,Ltd.
1,396,899

840,943

Jiangxi Jiangling Group Special Vehicle Co.,Ltd.
201,696

1,810,239

Ford Vietnam Limited
10,000

2,377,817


101,849,426

186,041,242




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

128
8
Related parties and related party transactions (Cont’d)


(6)
Receivables from and payables to related parties (Cont’d)






Lease liabilities










30 June 2026

31 December 2025






Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.
11,638,084

17,991,177

Ford Motor (China) Co., Ltd.
346,817

429,403


11,984,901

18,420,580






Notes Payable










30 June 2026

31 December 2025






Jiangxi Jingwei Hirain Technologies Co., Inc.
43,174,800

21,148,158

Jiangxi Zhonglian Intelligent Logistics Co., Ltd.
21,272,253

51,987,191

Jiangxi Lingge Non-ferrous Metal Die-casting Co.,Ltd.
15,926,434

20,028,725

Nanchang Unistar Electric & Electronics Co.,Ltd.
10,108,661

-

Jiangxi Jiangling Lear Interior System Co.,Ltd.
-

43,447,910

Dibao transportation equipment (Nanchang) Co., Ltd
-

5,987,652


90,482,148

142,599,636

(7)
Commitments in relation to related parties






Capital commitments










30 June 2026

31 December 2025

JMCG Jiangxi Engineering Construction
Co., Ltd.
42,897,500

50,047,100

Jiangxi JMCG Specialty Vehicles
Corporation, Ltd.
61,000
-


42,958,500
50,047,100



Guarantee of commitments in relation to related parties is set out in Note 8(5)(c).


9
Contingencies



As at 30 June 2026, the Group had no contingencies that needed to be disclosed in the notes
to the financial statements.


10
Commitments



Capital expenditure commitments



Capital expenditures contracted for by the Group but are not yet necessary to be recognised
on the balance sheet as at the balance sheet date are as follows:




30 June 2026

31 December 2025






Buildings, machinery and equipment
670,953,000

447,365,000







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

129
11
Financial instrument and risk



The Group’s activities expose it to a variety of financial risks, which mainly comprise market
risk (primarily including foreign exchange risk and interest rate risk), credit risk and liquidity
risk. The above financial risks and the Group’s risk management policies to mitigate the risks
are as follows:






The Board of Directors is responsible for planning and establishing the Group’s risk
management framework, formulating the Group’s risk management policies and related
guidelines, and supervising the implementation of risk management measures. The Group
has established risk management policies to identify and analyse the risks faced by the
Group. These risk management policies specify the risks such as market risk, credit risk and
liquidity risk management. The Group regularly evaluates the market environment and
changes in the Group’s operating activities to determine whether to update the risk
management policies and systems or not. The Group’s risk management is carried out by
the Risk Management Committee under policies approved by the Board of Directors. The
Risk Management Committee works closely with other business departments of the Group
to identify, evaluate and avoid relevant risks. The internal audit department of the Group
conducts periodical audit to the controls and procedures for risk management and reports
the audit results to the Audit Committee of the Group.


(1)
Market risk


(a)
Foreign exchange risk



The Group’s major operational activities are carried out in the mainland China and a majority
of the transactions are denominated in RMB. The Group is exposed to foreign exchange
risk arising from the recognised assets and liabilities, and future transactions denominated
in foreign currencies, primarily with respect to USD. The Group continuously monitors the
amount of assets and liabilities, and transactions denominated in foreign currencies to
minimise the foreign exchange risk. As at 30 June 2026, the Group’s borrowings
denominated in foreign currencies were USD98,226, equivalent to RMB669,010. The
Group's other accounts payable denominated in foreign currencies was USD32,316,372,
equivalent to RMB220,103,578. The Group signed forward exchange contracts to mitigate
the foreign exchange risk.







JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

130
11
Financial instrument and risk (Cont’d)




(1)
Market risk (Cont’d)




(a)
Foreign exchange risk (Cont’d)



The financial assets and financial liabilities denominated in foreign currencies, which were
held by the Group, were expressed in RMB as at 30 June 2026 and 31 December 2025 as
follows:





30 June 2026

31 December 2025



USD

USD











Financial liabilities denominated in
foreign currency -




Derivative financial liability

3,517,243
695,349

Current portion of long-term
borrowings

446,006
460,275

Long-term borrowings

223,004
460,276

Other payables

220,103,578
238,048,904



224,289,831
239,664,804


As at 30 June 2026, for various types of foreign currency financial assets and foreign currency
financial liabilities, if RMB appreciates or depreciates by 10% against the US dollar, and other
factors remain unchanged, the Group will increase or decrease its total profit by approximately
RMB22,428,983 (31 December 2025: approximately RMB23,966,480)





JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

131
11
Financial instrument and risk (Cont’d)




(1)
Market risk (Cont’d)



(b)
Interest rate risk



The Group’s interest rate risk mainly arises from interest-bearing debts such as short-term
borrowings and long-term borrowings. The financial liabilities of floating interest rate expose
the Group to cash flow interest rate risk, and the financial liabilities of fixed interest rate
expose the Group to fair value interest rate risk. The Group determines the relative
proportions of fixed-rate and floating-rate contracts based on the prevailing market
environment. As at 30 June 2026, the Group’s short-term borrowings of RMB350,000,000
(31 December 2025: RMB1,950,000,000) were fixed-rate borrowings, and long-term
borrowings of USD98,226 (31 December 2025: USD130,968) were fixed-rate contracts,
therefore there was no significant cash flow interest rate risk.



The Group continuously monitors the interest rate position of the Group. Increases in
interest rates will increase the cost of new borrowing, and therefore could have a material
adverse effect on the Group’s financial performance. Management makes adjustments
timely with reference to the latest market conditions and may enter into interest rate swap
agreements to mitigate its exposure to interest rate risk. During the six months ended 30 June
2026 and 2025, the Group did not enter into any interest rate swap agreements.



As at 30 June 2026 and 31 December 2025, there was no significant difference between
the fair value and the carrying amount of the Group’s bank borrowings with fixed rates.


(2)
Credit risk



The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable,
accounts receivable, financing receivables, other receivables, long-term receivables and
derivative financial assets at fair value through profit or loss that are not included in the
impairment assessment scope. The carrying amount of the Group’s financial assets reflects
its maximum credit exposure at the balance sheet date.



The Group expects that there is no significant credit risk associated with cash at bank and
on hand since they are deposited at state-owned banks and other large or medium size
banks with good reputation and high credit rating. The Group does not expect that there
will be significant losses from non-performance by these banks.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

132
11
Financial instrument and risk (Cont’d)


(2)
Credit risk (Cont’d)


The Group has policies to limit the credit exposure on notes receivable, accounts receivable,
financing receivables, other receivables and long-term receivables. The Group assesses the
credit quality of and sets credit limits on its customers by taking into account their financial
position, the availability of guarantee from third parties, their credit history and other factors
such as current market conditions. The credit history of the customers is regularly monitored
by the Group. In respect of customers with a poor credit history, the Group will use written
payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the
Group is limited to a controllable extent.



As at 30 June 2026, the Group had no significant collateral or other credit enhancements held
as a result of the debtor’s mortgage (31 December 2025: Nil).

(3)
Liquidity risk



Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the
Group. The Group monitors rolling forecasts of the Group’s short-term and long-term liquidity
requirements to ensure it has sufficient cash, while maintaining sufficient headroom on its
undrawn committed borrowing facilities from major financial institutions so that the Group
does not breach borrowing limits or covenants on any of its borrowing facilities to meet the
short-term and long-term liquidity requirements.


As at the balance sheet date, the financial liabilities of the Group were analysed by their
maturity date below at their undiscounted contractual cash flows:




30 June 2026



Within 1 year

1 to 2 years

2 to 5 years
Over 5 years

Total


Derivative
financial liability

3,517,243

-

-

-

3,517,243


Short-term
borrowings

350,000,000

-

-

-

350,000,000

Notes payable

338,413,385

-

-

-

338,413,385

Accounts
payable

11,059,636,157

-

-

-

11,059,636,157

Other payables

5,887,712,956

-

-

-

5,887,712,956

Lease liabilities

26,641,995

14,118,843

20,991,452

-

61,752,290

Long-term
borrowings

454,369

224,676

-

-

679,045



17,666,376,105

14,343,519

20,991,452

-

17,701,711,076




31 December 2025



Within 1 year

1 to 2 years

2 to 5 years
Over 5 years

Total














Derivative
financial
liability

695,349

-

-

-

695,349


Short-term
borrowings

1,950,000,000

-

-

-

1,950,000,000

Notes payable

427,292,904

-

-

-

427,292,904

Accounts
payable

11,397,760,484

-

-

-

11,397,760,484

Other payables

5,803,694,871

-

-

-

5,803,694,871

Lease liabilities

94,181,823

19,112,654

27,987,771

-

141,282,248

Long-term
borrowings

472,357

465,454

-

-

937,811



19,674,097,788

19,578,108

27,987,771

-

19,721,663,667



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

133
11
Financial instrument and risk (Cont’d)
(3)
Liquidity risk (Cont’d)
(i)
As at 30 June 2026, the Group did not have lease contracts that had been signed but had
not yet been performed.
12
Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the fair
value hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.

(1)
Assets and liabilities measured at fair value on a recurring basis
As at 30 June 2026, the assets measured at fair value on a recurring basis by the above
three levels were analysed below:
Level 1
Level 2
Level 3
Total
Financial assets
Financial assets held for
trading -



Structured deposit
-
801,738,192
-
801,738,192
Financing receivables -



Notes receivable
-
48,495,341
-
48,495,341

-
850,233,533
-
850,233,533

As at 31 December 2025, the assets measured at fair value on a recurring basis by the above
three levels were analysed below:
Level 1
Level 2
Level 3
Total
Financial assets
Financial assets held for
trading -



Structured deposit
-
801,902,466
-
801,902,466
Financing receivables -



Notes receivable
-
205,851,591
-
205,851,591

-
1,007,754,057
-
1,007,754,057
As at 30 June 2026, the liabilities measured at fair value on a recurring basis by the above
three levels were analysed below:












JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

134
12
Fair value estimates(Cont’d)








Level 1
Level 2
Level 3
Total
Financial liabilities
Derivative financial liabilities -
Forward foreign exchange contracts
--
3,517,243
--
3,517,243
(1)
Assets and liabilities measured at fair value on a recurring basis (Cont'd)

As at 31 December 2026, the liabilities measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1
Level 2
Level 3
Total
Financial liabilities
Derivative financial liabilities -
Forward foreign exchange contracts
--
695,349
--
695,349

The Group takes the date on which events causing the transfers between the levels take
place as the timing specific for recognising the transfers. There was no transfer between
Level 1 and Level 2 As at 30 June 2026.




The fair value of financial instruments traded in an active market is determined at the quoted
market price; and the fair value of those not traded in an active market is determined by the
Group using valuation technique.
(2)
Assets measured at fair value on a non-recurring basis
As at 30 June 2026 and 31 December 2025, the Group had no assets measured at fair value
on a non-recurring basis.
(3)
Assets and liabilities not measured at fair value but for which the fair value is disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly comprise
notes receivable, accounts receivable, other receivables, long-term receivables, short-term
borrowings, payables, lease liabilities and long-term borrowings.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

135
12
Fair value estimates(Cont’d)
The carrying amount of the Group’s financial assets and liabilities not measured at fair value
is a reasonable approximation of their fair value.
13
Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue as
a going concern in order to provide returns for shareholders and benefits for other
stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to shareholders, refund capital to shareholders, issue new shares or sell
assets to reduce debts.
The Group's total capital is calculated as “shareholders’ equity” as shown in the consolidated
balance sheet. The Group is not subject to external mandatory capital requirements, and
monitors capital on the basis of equity ratio.
As at 30 June 2026 and 31 December 2025, the Group’s equity ratio was as follows:
30 June 2026

31 December 2025



Total borrowings
350,669,010

1,950,920,551
Total shareholders’ equity
11,657,993,580

11,392,038,408



Equity ratio
3%

17%

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

136
14
Notes to the Company’s financial statements

(1)
Accounts receivable




30 June 2026
31 December 2025






Accounts receivable
7,135,200,763
6,815,674,720

Less: Provision for bad debts
(550,460,271)
(551,092,111)


6,584,740,492
6,264,582,609

(a)
The aging of accounts receivable was analysed as follows:




30 June 2026

31 December 2025






Within 1 year
6,124,506,751
6,034,988,177

Over 1 year
1,010,694,012
780,686,543


7,135,200,763
6,815,674,720


As of 30 June 2026, accounts receivable with significant individual amounts and aging
exceeding three years was analysed as follows:



Balance

Reason and collection risk












Company1
63,365,929

Due to the operating difficulties of the defaulting
company and several lawsuits involved, the
Company considered that the receivables were
difficult to collect and had therefore made full
provision for bad debts.

(b)
As at 30 June 2026, the top five accounts receivable ranked by the balances of the debtors
were analysed as follows:




Balance

Amount of
provision for bad
debts
% of total balance








The total amount of
accounts receivable
in the top five
6,981,085,205
549,289,086
98%



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

137
14
Notes to the Company’s financial statements (Cont’d)

(1)
Accounts receivable (Cont’d)

(c)
Provision for bad debts



For accounts receivable, the Company measures the loss provision based on the lifetime
ECL regardless of whether there is a significant financing component.


The provision for bad debts of accounts receivable was analysed by category as follows:




30 June 2026


Book balance

Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio






Provision for bad debts on the
individual basis (i)
1,953,207,304
27%
539,114,199
27.60%

Provision for bad debts on the
grouping basis (ii)
5,181,993,459
73%
11,346,072
0.22%


7,135,200,763
100.00%
550,460,271
7.71%



31 December 2025


Book balance

Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio






Provision for bad debts on the
individual basis (i)
1,986,944,666
29%

540,672,868
27.21%

Provision for bad debts on the
grouping basis (ii)
4,828,730,054
71%

10,419,243
0.22%


6,815,674,720
100%

551,092,111
8.09%


(i)
Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:




30 June 2026



Book balance

Provision for bad debts



Amount

Lifetime ECL (%)

Provision for bad debts








Receivables from related parties
within the Group i)

1,889,841,375
25%

475,748,270

Receivables for
automobiles ii)

63,365,929
100%

63,365,929



1,953,207,304


539,114,199




31 December 2025



Book balance

Provision for bad debts



Amount

Lifetime ECL (%)


Provision for bad
debts








Receivables from related parties
within the Group i)

1,922,020,068

25%

475,748,270

Receivables for
automobiles ii)

64,924,598

100%

64,924,598



1,986,944,666



540,672,868


i) As at 30 June 2026, the Company’s accounts receivable from subsidiary JMC & Ford
(Shanghai),
SZFJ
and
GZFJ
were
RMB524,807,454,
RMB1,358,073,621
and
RMB6,960,300 (31 December 2025: RMB529,737,786, RMB1,385,321,982 and
RMB6,960,300). The Company has individually assessed the receivable from JMC & Ford
(Shanghai), a subsidiary, and recognized an impairment loss of RMB475,748,270 based
on its evaluation of credit risk(31 December 2025: 475,748,270).






JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

138
14
Notes to the Company’s financial statements (Cont’d)


(1)
Accounts receivable (Cont’d)


(c)
Provision for bad debts (Cont’d)


(i)
Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows (Cont’d):




ii) As at 30 June 2026, the Company assessed the expected credit losses of the relevant
accounts receivable, which were expected to be unrecoverable, and therefore made a
provision for bad debts in full amounting to RMB63,365,929 (31 December 2025:
RMB64,924,598), which was included in the reversal of profit or loss of RMB1,558,669 (the
six months ended 30 June 2025: no impact on profit or loss for the current period).


(ii)
Accounts receivable for which provision for bad debts was made on the grouping basis were
analysed as follows:



Grouping – Domestic sales of general automobiles:





30 June 2026


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Not overdue

57,828,043

0.08%

44,879

Overdue for 1 to 30 days

2,322,100

2.60%

60,364

Overdue for 31 to 60 days

234,500

4.40%

10,309
Overdue for 61 to 90 days

1,577,940

6.12%

96,594
Overdue over 90 days

2,063,126

9.18%

189,395


64,025,709



401,541










31 December 2025


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Not overdue

114,439,713

0.02%

22,651

Overdue for 1 to 30 days

-

-

-

Overdue for 31 to 60 days

2,549,619

2.18%

55,521
Overdue for 61 to 90 days

-

-

-
Overdue over 90 days

2,058,700

9.18%

188,989


119,048,032



267,161

Grouping – Export sales of general automobiles:



30 June 2026



Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Not overdue

4,953,208,692

0.20%

9,906,417



















JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

139
14
Notes to the Company’s financial statements (Cont’d)


(1)
Accounts receivable (Cont’d)


(c)
Provision for bad debts (Cont’d)


(ii)
Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):










Grouping – Export sales of general automobiles(Cont’d):



31 December 2025


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Not overdue

4,538,555,702

0.20%

9,077,111


Grouping - Sales of new energy automobiles:





30 June 2026


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Overdue over 90 days

562,680

80.00%

450,144












31 December 2025


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Overdue over 90 days

562,680

80.00%

450,144


Grouping – Automobile parts:




30 June 2026


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount







Not overdue

126,339,298

0.30%

379,018

Overdue for 1 to 30 days

28,017,996

0.30%

84,054

Overdue for 31 to 60 days

8,156,807

0.50%

40,784

Overdue for 61 to 90 days

-
-

-

Overdue over 90 days

1,682,277

5.00%

84,114



164,196,378



587,970




31 December 2025


Book balance

Provision for bad debts


Amount

Lifetime ECL (%)

Amount








Not overdue

160,521,184

0.30%

481,564

Overdue for 1 to 30 days

5,892,457

0.30%

17,677

Overdue for 31 to 60 days

1,349,957

0.50%

6,750

Overdue for 61 to 90 days

481,041

0.60%

2,886

Overdue over 90 days

2,319,001

5.00%

115,950



170,563,640



624,827








JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

140
14
Notes to the Company’s financial statements (Cont’d)


(1)
Accounts receivable (Cont’d)

(c)
Provision for bad debts (Cont’d)


(iii)
The reversed provision for bad debts in the current period amounted to RMB631,840.


(d)
There was no provision for bad debts actually written off during the period.

(e)
As at 30 June 2026 and 31 December 2025, there were no accounts receivable pledged.

(2)
Other receivables



30 June 2026

31 December 2025






Import working capital
5,000,000

5,000,000

Receivables from JMCH
3,930,364

14,767,717

Gas and electricity bills
2,111,988

21,112,025

Receivables from land acquisition
and storage
-

79,807,336

Others
15,924,800
14,363,159


26,967,152
135,050,237

Less: Provision for bad debts
(93,390)
(143,653)


26,873,762
134,906,584

The Company did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.


(a)
The aging of other receivables was analysed as follows:




30 June 2026

31 December 2025




Within 1 year
24,630,218
125,074,373
Over 1 year
2,336,934
9,975,864

26,967,152
135,050,237




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

141
14
Notes to the Company’s financial statements (Cont’d)


(2)
Other receivables (Cont’d)


(b)
Provision for losses and changes in book balance statements


The provision for bad debts of other receivables were analysed by category as follows:




30 June 2026

Book balance
Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio






Provision for bad debts on the
individual basis (i)
3,930,364
15%

-
0.00%

Provision for bad debts on
the grouping basis (ii)
23,036,788
85%

93,390
0.41%


26,967,152
100%

93,390
0.35%


31 December 2025

Book balance
Provision for bad debts

Amount
% of total
balance

Amount
Provision
ratio






Provision for bad debts on the
individual basis (i)
94,575,053
70%

-
0.00%

Provision for bad debts on
the grouping basis (ii)
40,475,184
30%

143,653
0.35%


135,050,237
100%

143,653
0.11%



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

142
14
Notes to the Company’s financial statements (Cont’d)


(2)
Other receivables (Cont’d)


(b)
Provision for losses and changes in book balance statements (Cont’d):




Stage 1





12-month ECL (grouping)
12-month ECL (individual)

Total


Book
balance
Provision for
bad debts

Book
balance
Provision
for bad
debts
Provision for
bad debts









31 December 2025

40,475,184
143,653

94,575,053
-

143,653

Decrease in the
current period

(17,438,396)
-

(90,644,689)
-
-

Bad debt provision
decreased in the
current period

-
(50,263)

-
-
(50,263)

30 June 2026

23,036,788
93,390

3,930,364
-
93,390


As at 30 June 2026 and 31 December 2025, the Company did not have any other receivables
at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:


(i)
As at 30 June 2026 and 31 December 2025, the Company’s other receivables with provision
for bad debts on the individual basis were analysed below:




30 June 2026


31 December 2025

Stage 1
Book
balance
12-month
ECL rates
Provision
for bad
debts

Book
balance
12-month
ECL rates

Provision
for bad
debts





















Receivables from
JMCH
3,930,364
-
-


14,767,717
-

-

Receivables from
land acquisition and
storage
-
-
-


79,807,336
-

-


3,930,364

-


94,575,053


-



The Company assessed the receivables from refund of social insurance individually and based
on the judgment of credit risk, the receivables were not subject to significant credit risk and were
not overdue and impaired.




JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

143
14
Notes to the Company’s financial statements (Cont’d)


(2)
Other receivables (Cont’d)


(b)
Provision for losses and changes in book balance statements (Cont’d):


(ii)
As at 30 June 2026 and 31 December 2025, the Company’s other receivables with
provision for bad debts on the grouping basis were analysed below:



Other receivables with provision on the grouping basis at Stage 1:


As at 30 June 2026, the Company’s other receivables with provision for bad debts on the
grouping basis were analysed below:



Book
balance
12-month
ECL rates
Provision for
bad debts

Reason








Provision on the grouping basis:






Import working capital
5,000,000
0.34%
16,782

ECL
Gas and electricity bills
2,111,988
0.34%
7,089

ECL
Others
15,924,800
0.44%
69,519

ECL

23,036,788

93,390




As at 31 December 2025, the Company’s other receivables with provision for bad debts
on the grouping basis were analysed below:



Book
balance
12-month
ECL rates
Provision for
bad debts

Reason







Provision on the grouping basis:




Gas and electricity bills
21,112,025
0.30%
63,082

ECL
Import working capital
5,000,000
0.30%
14,940

ECL
Others
14,363,159
0.46%
65,631

ECL

40,475,184
143,653



(c)
The reversed provision for bad debts in the current period amounted to RMB50,263.

(d)
There was no provision for bad debts written off during the period.



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

144
14
Notes to the Company’s financial statements (Cont’d)


(2)
Other receivables (Cont’d)


(e)
As at 30 June 2026, the top five other receivables ranked by remaining balances
were analysed as follows:



Nature

Balance

Aging

% of
total
balance

Provision
for bad
debts










Company 1
Import working
capital etc.

6,101,420
within 1 year

23%

20,479
Company 2
Accounts receivabl
e from subsidiaries

3,930,364
within 1 year

15%

-
Company 3
Gas bills

2,111,988
within 1 year

8%

7,089
Company 4
Office expenses

2,106,895
within 1 year

8%

7,072
Company 5
Repair fees

1,523,041
within 1 year

6%

5,112


15,773,708


60%

39,752

(3)
Long-term equity investments


30 June 2026
31 December 2025

Subsidiaries (a)
3,646,975,223
3,646,975,223
Associates (b)
170,154,158
198,792,911
3,817,129,381
3,845,768,134


Less: Provision for impairment of long-term
equity investments for subsidiaries
(3,191,472,283)
(3,191,472,283)
Provision for impairment of long-term
equity investments for associates
-
-

(3,191,472,283)
(3,191,472,283)



625,657,098
654,295,851



JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

145
14
Notes to the Company’s financial statements (Cont’d)
(3)
Long-term equity investments (Cont’d)

(a)
Subsidiaries





Movements for
the current period











31 December
2025
Additional
investments

30 June 2026

Ending balance
of provision for
impairment

Cash
dividends
declared this
period
30 June 2026


Gross amount


Gross amount



Carrying
amount










JMCH

2,686,943,493
-

2,686,943,493
(2,301,440,553)
-

385,502,940

JMCS

50,000,000
-

50,000,000
-
-

50,000,000

SZFJ

10,000,000
-

10,000,000
-
-

10,000,000

GZFJ

10,000,000
-

10,000,000
-
-

10,000,000

Jiangling Ford
(Shanghai)

890,031,730
-

890,031,730
(890,031,730)
-

-



3,646,975,223
-

3,646,975,223
(3,191,472,283)
-

455,502,940

(b)
Associates




Movements for the current period

Impairment provision

31 December
2025
Decrease in
the current
period
Share of net
profit/(loss)
under equity
method
Cash
dividends
declared
Provision for
impairment 30 June 2026
Shareholding
(%)
Voting
rights
(%)
30 June
2026

31
December
2025











The Power
Company
172,167,512
-
(2,013,354)
-
-
170,154,158
40.00%
40.00%
-
-

Hanon
Systems
26,625,399
(26,625,399)
-
-
-
-
-
-
-
-

Total
198,792,911
(26,625,399)
(2,013,354)
-
-
170,154,158


-
-

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

146
14
Notes to the Company’s financial statements (Cont’d)
(4)
Revenue and cost of sales


(a)
Revenue and cost of sales




The six months ended 30 June


2026

2025


revenue

cost

revenue

cost

Main
operations
17,950,761,593

16,162,026,280
17,063,223,739

15,018,996,560

Other
operations
620,145,120

288,708,588
342,945,766

220,930,116


18,570,906,713

16,450,734,868
17,406,169,505
15,239,926,676

(b)
The breakdown of revenue


The six months ended 30 June 2026

Automobiles
Materials and
parts
Automobile
maintenance
services, etc.
Total






Recognised at a time point
17,150,831,558
930,881,727
-
18,081,713,285

Recognised within a certain period
-
-
489,193,428
489,193,428

17,150,831,558
930,881,727
489,193,428
18,570,906,713



The six months ended 30 June 2025

Automobiles
Materials and
parts
Automobile
maintenance
services, etc.
Total






Recognised at a time point
16,296,703,916
986,292,477
-
17,282,996,393

Recognised within a certain period
-
-
123,173,112
123,173,112

16,296,703,916
986,292,477
123,173,112
17,406,169,505

As of 30 June 2026, the revenue corresponding to the performance obligations that the
company has signed but has not yet fulfilled or completed is RMB1,142,836,762, and is
expected to recognize it as operating income in 2027.



(5)
Investment income




The six months ended 30 June


2026

2025





Investment (losses)/gain from forward
exchange settlement
(158,139)
10,631,603

Losses on discount of financing receivables
eligible for derecognition
(1,392,180)
(1,422,995)

Investment gains from disposal of long-term
equity investment
2,384,900
-

Losses on long-term equity investments under
equity method
(2,013,354)
(9,803,325)


(1,178,773)
(594,717)



There is no significant restriction on the remittance of investment income to the Company.

JIANGLING MOTORS CORPORATION, LTD.

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

147
1
Statement of non-recurring profit or loss




The six months ended 30 June


2026

2025






Government grants recognised in profit or loss for
the current period, except those that are
closely related to ordinary activities and
conform to the national policies and
regulations, and are granted in accordance
with certain standards and have a continuous
impact on the Company’s profit or loss
164,601,774
202,242,182

Gains or losses on disposal of non-current assets
4,574,194
18,414,462

Fund occupation fees received from non-financial
institutions
1,978,923
1,240,008

Gains or losses arising from changes in fair value
of financial assets and liabilities held, and
gains or losses on disposal of related financial
assets and liabilities, except for the effective
hedging business related to the normal
operation
989,383
3,713,253

Net amount of other non-operating income and
expenses
(1,613,481)
1,448,653

Reversal of impairment charges for receivables
that are tested separately for impairment
1,558,669
-

One-off expenses incurred due to discontinuation
of related business activities
-
(86,573)

172,089,462
226,971,985
Effect of income tax
(27,724,936)
(33,644,788)
Effect of gains or losses on minority interests (net
of tax)
(3,675,000)
(515,356)

140,689,526
192,811,841

(1)
Basis for preparation of statement of non-recurring profit or loss for 2025



In 2023, the CSRC issued the Explanatory Announcement No. 1 on Information Disclosure
by Companies Offering Securities to the Public - Non-recurring Profit or Loss (Revised in
2023) (hereinafter “2023 Explanatory Announcement No. 1 ”), which came into effect from
the date of promulgation.

Under the requirements in the 2023 Explanatory Announcement No. 1, non-recurring profit
or loss refers to those arises from transactions and events that are not directly relevant to
ordinary activities, or that are relevant to ordinary activities, but are extraordinary and not
expected to happen frequently that would have an influence on the financial statements
users’ making economic decisions based on the financial performance and profitability of
an enterprise.



JIANGLING MOTORS CORPORATION, LTD.

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

148

2
Return on net assets and earnings per share




Weighted average
return on net assets
(%)
Earnings per share

Basic earnings per
share
Diluted earnings
per share


The six months ended 30 June


2026
2025
2026
2025
2026
2025








Net profit attributable to
ordinary shareholders
of the Company
6.12%
6.30%
0.86
0.85
0.86
0.85

Net profit attributable to
ordinary shareholders
of the Company, net of
non-recurring profit or
loss
4.96%
4.64%
0.70
0.63
0.70
0.63