[年报]江 铃Ｂ:2020年年度报告（英文版）
原标题:江 铃Ｂ:2020年年度报告（英文版） Jiangling Motors Corporation, Ltd. C:\Users\张志勤\AppData\Local\Temp\ksohtml240\wps1.png 2020 Annual Report 2021-03 Chapter I Important Notes, Contents and Abbreviations Important Note The Board of Directors and its members, the Supervisory Board and its members, and the senior executives are jointly and severally liable for the truthfulness, accuracy and completeness of the information disclosed in the report and confirm that the information disclosed herein does not contain any false statement, misrepresentation or major omission. Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department, Ding Ni, confirm that the Financial Statements in this Annual Report are truthful and complete. All Directors were present at the Board meeting to review this Annual Report. The year 2020 profit distribution proposal approved by the Board of Directors is as follows: A cash dividend of RMB 34.76 (including tax) will be distributed for every 10 shares held based on the total share capital of 863,214,000 shares, and there is no stock dividend. The Board decided not to convert capital reserve to share capital this time. Contents Chapter I Important Notes, Contents and Abbreviations ............................... 2 Chapter II Brief Introduction and Operating Highlight .................................... 4 Chapter III Operating Overview ...................................................................... 8 Chapter IV Management Discussion and Analysis ......................................... 11 Chapter V Major Events ............................................................................... 28 Chapter VI Share Capital Changes & Shareholders ...................................... 39 Chapter VII Preferred Shares.......................................................................... 44 Chapter VIII Convertible Bond ......................................................................... 45 Chapter IX Directors, Supervisors, Senior Management and Employees ...... 46 Chapter X Corporate Governance Structure ................................................. 59 Chapter XI Corporate Bond............................................................................ 66 Chapter XII Financial Statements ................................................................... 67 Chapter XIII Catalog on Documents for Reference ....................................... 209 Abbreviations: JMC or the Company Jiangling Motors Corporation, Ltd. JIC Nanchang Jiangling Investment Co., Ltd. Ford Ford Motor Company CSRC China Securities Regulatory Commission JMCG Jiangling Motors Group Co., Ltd. JMCH JMC Heavy Duty Vehicle Co., Ltd. EVP Executive Vice President CFO Chief Financial Officer VP Vice President Chapter II Brief Introduction and Operating Highlight 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 Registered Address No. 509, Northern Yingbin Avenue, Nanchang City, Jiangxi Province, P.R.C Postal Code of Registered Address 330001 Headquarters Address No. 509, Northern Yingbin Avenue, Nanchang City, Jiangxi Province, P.R.C Postal Code of Headquarters Address 330001 Website http://www.jmc.com.cn [email protected] 2. Contact Person and Method Board Secretary Securities Affairs Representative Name Xu Lanfeng Quan Shi Address No. 509, Northern Yingbin Avenue, Nanchang City, Jiangxi Province, P.R.C No. 509, Northern Yingbin Avenue, Nanchang City, Jiangxi Province, P.R.C Tel 86-791-85266178 86-791-85266178 Fax 86-791-85232839 86-791-85232839 [email protected] [email protected] 3. Information Disclosure and Place for Achieving Annual Report Newspapers for information disclosure China Securities, Securities Times, Hong Kong Commercial Daily Website designated by CSRC for publication of JMC’s Annual Report http://www.cninfo.com.cn Place for Achieving Annual Report Securities Department, Jiangling Motors Corporation, Ltd. 4. Changes of Registration Organization Code 913600006124469438 Changes in the Main Business since the Listing No change. Changes of Controlling Shareholders On December 1, 1993, JMC A shares were listed on Shenzhen Stock Exchange, while JMCG, the founder- member, was the controlling shareholder of the Company. On September 29, 1995 and November 12, 1998, JMC issued additional 344 million B shares totally, while, after the additional B share issuance, JMCG and Ford were the controlling shareholders of the Company. On December 8, 2005, the 354.176 million JMC shares held by JMCG, the former controlling shareholder, were transferred to Jiangling Motor Holdings Co., Ltd. After the transference, Jiangling Motor Holdings Co., Ltd. and Ford were the controlling shareholders of the Company. In 2019, Jiangling Motor Holdings Co., Ltd., the former controlling shareholder, was divided and separated into Jangling Motor Holdings Co., Ltd. and Nanchang Jiangling Investment Co., Ltd., and transferred the 354.176 million JMC shares it held to Nanchang Jiangling Investment Co., Ltd. Presently, Nanchang Jiangling Investment Co., Ltd. and Ford are the controlling shareholders of the Company. 5. Other Information Accounting Firm Appointed by JMC for Audit Name PricewaterhouseCoopers Zhong Tian LLP (‘PwC Zhong Tian’) Headquarters Address 11/F, PricewaterhouseCoopers Center Link Square 2, 202 Hu Bin Road, Huangpu District, Shanghai 200021, PRC Names of Signed Accountants Lei Fang, Ye Dan 6. Main accounting data and financial ratios Unit: RMB 2020 2019 Change (%) 2018 Revenue 33,095,733,665.00 29,173,636,262.00 13.44% 28,249,339,672.00 Profit Attributable to the Equity Holders of the Company 550,698,958.00 147,812,078.00 272.57% 91,833,346.00 Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Profit or Loss 405,188,533.00 -308,254,449.00 231.45% -277,870,024.00 Net Cash Generated From Operating Activities 3,698,342,828.00 2,736,867,238.00 35.13% -101,590,551.00 Basic Earnings Per Share (RMB) 0.64 0.17 272.57% 0.11 Diluted Earnings Per Share (RMB) 0.64 0.17 272.57% 0.11 Weighted Average Return on Equity Ratio 5.13% 1.42% 3.71% 0.83% End of Year 2020 End of Year 2019 Change (%) End of Year 2018 Total Assets 28,185,185,418.00 24,298,528,593.00 16.00% 23,396,529,475.00 Shareholders’ Equity Attributable to the Equity Holders of the Company 10,986,474,009.00 10,496,563,781.00 4.67% 10,384,497,513.00 7. 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 8. Main accounting data quarterly Unit: RMB Q1 Q2 Q3 Q4 Revenue 4,619,180,560.00 9,454,237,318.00 8,005,447,973.00 11,016,867,814.00 Profit Attributable to the Equity Holders of the Company 69,462,263.00 138,309,519.00 150,811,264.00 192,115,912.00 Net Profit Attributable to Shareholders of Listed Company After Deducting Non- Recurring Profit or Loss -86,612,788.00 135,964,122.00 126,751,664.00 229,085,535.00 Net Cash Generated From Operating Activities -3,209,160,716.00 3,943,444,343.00 124,978,829.00 2,839,080,372.00 Chapter III Operating Overview 1. Company’s Core Business during the Reporting Period In 2020, the whole production and sales volume in China auto industry was 25.225 million and 25.311 million units respectively, with YOY decline of 2.0% and 1.9%. However, the sales volume kept increasing for nine months consecutively, with weaker and weaker impact from the epidemic. In 2020, driven by such factors as Stage III auto phase-out, stricter overload supervision and infrastructure investment, the annual production and sales volume of CV segment increased dramatically, which was 5,231,000 and 5,133,000 units, with 20.0% and 18.7% increase respectively, creating the record new high. Trucks are the major support for market growth. In 2020, the production and sales volume of trucks were 4,778,000 and 4,685,000 units, with 22.9% and 21.7% growth respectively. The production and sales volume of buses in 2020 were 453,000 and 448,000 units, with 4.2% and 5.6% YOY decline respectively. Compared with last year, light bus witnessed slight increase in terms of production and sales volume, but big and small sized buses suffered rapid decrease. In 2020, the production and sales volume of PV segment were 19,994,000 and 20,178,000 units, with YOY drop of 6.5% and 6.0% respectively. The newly revised 2020 Edition Vehicle Classification of the Toll for Highway implemented on January 1, 2020 has made corresponding modifications to the classification of passenger and goods vehicles. Such move lowered the charging standard for corresponding models, made it more acceptable for the majority of vehicle users, and stimulated the consumption demand of corresponding vehicle segment market. JMC’s core business is production and sales of commercial vehicles, SUV and related components. JMC’s major products include JMC series light truck, pickup and light bus; Yusheng SUV; Ford-brand light bus, MPV and Ford SUV. The Company also produces and sells engines, castings and other components for sales to domestic and overseas markets. In the CV segment that JMC is involved, influenced by dual circulation, E- commerce, refined tourism and customized transportation development, the light bus sales volume get further improved. With gradually loosened restriction on urban access, together with people’s pursuit for better life and the development of modern agriculture, the demands for Pickup shall be further released. With the new urbanization and the construction of city circles, there will be more demands on short and medium-distance transportation, which shall be an incentive to the light truck market. With the continuously improving income of people, SUV market shall gradually resume growth. The segments that JMC are involved shall enjoy further development with more incremental volume. In the whole year of 2020, the Company continued to increase its technical reserves and resource investment in new products, intelligent networking, new energy, lightweight and other aspects. Regarding vehicles, the Company developed car functions such as automatic driving and intelligent networking and formed the third largest space with vehicles as carriers, realizing more function expansion. Meanwhile, the Company strengthened the construction of digital operation capacity, involving in many key value spheres such as social networking and financial payment. A wide-area ecosystem was formed. The overall performance was excellent within the auto market. 2. Major Change of Main Assets I. Major Change of Main Assets There’s no major change of main assets during the reporting period. II. Main Overseas Assets □Applicable □√Not Applicable 3. Core Competitiveness Analysis JMC is a sino-foreign joint venture auto company with R&D, manufacturing and sales operations. With leading position and advanced technology of commercial vehicles, JMC is a China auto industry pioneer providing excellent products and solutions to smart logistics, which is certificated as a national high-tech enterprise, national innovative pilot enterprise, national enterprise technology centre, national industrial design centre, national intellectual property demonstration enterprises and national automobile export base; and had been ranked among the top 100 most valuable global brands for consecutive years. JMC light buses ranked No.1 in the segment with 31.8% market share. JMC Pickup ranked No.2 in the segment with 14.4% market share. JMC light trucks ranked No.5 in the segment with 7.6% market share. Three core CV models of JMC always take customer demands as the center, covering various scenarios. JMC light buses deeply studied various demands of SVO customers under different operation scenarios. While strengthening product, JMC also improved the modification feasibility and customer experience, thus constructing a competitive ecological chains. The newly launched Ford new- generation Transit Pro provided Uptime 100% for the first time, thus continuously consolidating the leader’s position. Yuhu 9, the American style high-end diesel Pickup that kicked the market in this April, was a top Pickup product in China, which demonstrated JMC’s technical power. It’s a versatile product that can satisfy family use, outdoors trips, goods transportation and minor off-road. Yuhu 7 AT model was equipped with ZF 8AT transmission and provided excellent comfort and great cost performance, which gained high popularity just after launch. Brand new JMC Baodian pickup owned the leading load capacity and fuel economy among peers, thus winning the honor of Economical Pickup of the Year. Newly launched Blue Whale light truck and Shunda small truck made breakthroughs in power performance, light weight and price, with leading quality and fuel economy as always. Kaiyun Blue Whale won the honor of 2020 Light Truck with Top Quality. New Ford Territory SUV, with leading space dimension, Miller engine and 48V MHEV technology, carries such technology as Feiyu smart mobility and Tencent Wechat smart voice control system. JMC quickly responded to the market, and is to launch more spacious mid-sized SUV and upgraded Territory SUV, with more comfort and more advanced intelligent connectivity, L2 level smart driving assistant system, OTA remote control and totally 26 standard options, 30 leading features. To comply with the international and domestic industry development, JMC accelerated transformation and upgrade, explored new business and innovate business mode. (1) JMC has made digitalization transformation strategy, focused on marketing service market, customer data insight, production supply chain, new product development and other management fields. JMC specified the digitalization transformation strategy and roadmap, with data middle platform constructed. (2) JMC planned for smart connectivity industry. The newly established branch in Shenzhen organized a technical team with core capability in software and hardware development of key electronic components and system integration, etc., with auto Internet architecture, in-car connectivity terminal TBOX and V2X, VCU/BMS industrialization development, thus supporting the study on such leading technology as domain controller, smart cabin and software algorithm. (3) Several new products were included in Key New Product Plan of Jiangxi Province, for example, military Pickup, brand-new Baodian Pickup, Stage VI special load light truck, no-contact distributing truck and mid or big sized Ford SUV, etc. The project Key Technology Development of Smart Logistics Vehicle- Road Synergy based on 5G-V2X was rated as the key local science & technology tackling subject. This project aimed at integrating 5G technology and vehicle-road synergy technology, with V2X smart logistics as the key scenario and vehicle-road synergy smart logistics park based on 5G communication constructed. This project is to be built as an industrialization modelling program based on 5G and V2X technology in Jiangxi Province. (4) JMC promotes the construction of cross-industry ecological circle and has conducted strategic ecological cooperation with such top enterprises in the industry as Pingan Bank, Huawei, Ali, Tencent and Iflytek, thus continuously creating the stable ecology for cross-industry smart service of CV. Chapter IV Management Discussion and Analysis 1. Summary In 2020, impacted by Covid-19 epidemic, China’s economy growth slowed down. The overall auto market in China witnessed downturn. The annual sales volume was 25,311,000 units, with YOY decline of 1.9%. During the reporting period, to cope with more severe competition, more stringent regulatory requirement and intensifying cost pressures, the Company focused on quality improvement, new product development, operating cost control and production efficiency enhancement. Simultaneously, the Company introduced series of sales policy to respond the market risk. In 2020, JMC achieved sales volume of 331,098 units, increased 14.15% compared with last year, achieved revenue of RMB 33.096 billion, increased 13.44% compared with last year, achieved net profit of RMB 551 million, increased 272.57% compared with last year. JMC achieved nine months’ positive growth in sales volume, which demonstrated good tenacity. In LCV segment, JMC light bus, light truck and Pickup kept leading position in the industry. In PV segment, JMC Yusheng SUV, Ford SUV kept making breakthroughs with overseas market exploration. In 2020, JMC planned for capacity of 330,000 units, with 102% productivity utilization. In 2020, Fushan Plant investment was RMB 182 million, with 49% completion. Vehicle manufacturing and operation □√Applicable □Not Applicable Production and Sales Volume Information Production Volume (Unit) Sales Volume (Unit) 2020 FY 2019 FY YOY change (%) 2020 FY 2019 FY YOY change (%) By Products Light Bus 94,945 81,312 16.77% 92,994 81,601 13.96% Truck 128,949 96,513 33.61% 128,875 96,915 32.98% Pickup 66,209 58,368 13.43% 65,204 59,486 9.61% SUV 46,212 51,881 -10.93% 44,025 52,056 -15.43% Total 336,315 288,074 16.75% 331,098 290,058 14.15% By Region China 336,315 288,074 16.75% 331,098 290,058 14.15% Explanation on the above 30% year-on-year change of related date. □√Applicable □Not Applicable Truck sales volume growth of 32.98% year on year is mainly due to the recovery of the light truck industry. Component Kit System Construction JMC owns the independent R&D and production capability of such key components as engine, body parts, frame, and front axle, etc. JMC also tries to create the sustainable swift supply system. By innovative mindset and digitalization, JMC established complete supplier admission, capability improvement and supplier control mechanism in terms of quality, cost and delivery. For traditional business, JMC kept the in-depth strategic cooperation with such leading companies in the industry as Bosch, Honeywell, Yunnei Power, ZF and GKN, etc. For CASE, JMC cooperated with CATL, Huawei, Tencent and Hengrun, etc. The diversified cooperation modes laid foundation for the high quality development of supply system. Production and operation of auto parts during the reporting period □Applicable □√Not Applicable The company carries out auto finance business □Applicable □√Not Applicable The company carries out new energy vehicle related business □√Applicable □Not Applicable Production and operation of new energy vehicles and parts Product Category Capacity(Unit) Production Volume (Unit) Sales Volume (Unit) Revenue (RMB) New Energy Bus Series 50,000 154 140 26,421,471.00 New Energy Passenger Vehicles and Pickup 50,000 288 285 48,347,966.00 New Energy Truck 30,000 116 117 18,940,813.00 Total 130,000 Note: all new energy vehicles are collinear with corresponding fuel vehicles. 558 542 93,710,250.00 BEV Subsidy In 2020, JMC received BEV subsidy of RMB 9,960,000. Ministry of Industry and Information Technology revised Regulation on BEV Manufacturer and Product Admission, in the future, there will be more compliant BEV models being admitted for inspection. As for BEV subsidy, the state extended the BEV purchase subsidy and vehicle purchase subsidy exemption policy for another two years since the end of 2020. This is beneficial to BEV market expansion and BEV product sales of JMC. 2. Core Business Analysis I. Summary In 2020, JMC sales volume achieved 331,098 units, increased 14.15% compared with last year, including 92,994 units light bus, 128,875 units truck, 65,204 units pickup, and 44,025 units SUV. Total production volume in 2020 was 336,315 units, increased 16.75% compared with last year, including 94,945 units light bus, 128,949 units truck, 66,209 units pickup, and 46,212 units SUV. JMC total sales revenue in 2020 was RMB 33.10 billion, increased 13.44% compared with last year. II. Revenue and Cost (a) Composition of Sales Revenue Unit: RMB 2020 FY 2019 FY YOY change (%) Amount Proportion (%) Amount Proportion (%) Revenue 33,095,733,665 100.00% 29,173,636,262 100.00% 13.44% By Industry Automobile Industry 33,095,733,665 100.00% 29,173,636,262 100.00% 13.44% By Products Vehicle 30,666,834,098 92.66% 26,252,631,564 89.98% 16.81% Components 1,774,007,492 5.36% 2,351,979,223 8.06% -24.57% Automobile Maintenance Services 94,435,844 0.29% 103,582,678 0.36% -8.83% Material & Others 560,456,231 1.69% 465,442,797 1.60% 20.41% By Region China 33,095,733,665 100.00% 29,173,636,262 100.00% 13.44% (b) Reach to 10% of Revenue or Profit by Industry, Product or Region □√Applicable □Not Applicable Unit: RMB Turnover Cost Gross Margin YOY turnover change (%) YOY Cost Change (%) YOY gross margin change (points) By Industry Automobile Industry 33,095,733,665 27,518,509,913 16.85% 13.44% 12.18% 0.94% By Products Vehicle 30,666,834,098 25,638,598,860 16.40% 16.81% 14.95% 1.36% By Region China 33,095,733,665 27,518,509,913 16.85% 13.44% 12.18% 0.94% 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 (c) Whether Company’s Goods Revenue Higher Than Service Revenue □√Yes □No Industry Item Unit 2020 2019 Change (%) Automobile Sales Volume unit 331,098 290,058 14.15% Production Volume unit 336,315 288,074 16.75% Inventory Volume unit 11,821 7,045 67.79% Explanation on YOY change of over 30% □√Applicable □Not Applicable At the end of 2020, the inventory volume is within the reasonable ratio of inventory volume to sales volume .The increase of 67.79% in inventory volume from the same period last year were due to the increased sales, and considering the spread of COVID-19 in China in the first quarter of 2021 and the uncertainty of COVID-19 in the world, the Company took the initiative to increase inventory to deal with the impact of supply chain fluctuations. (d) Execution of Company’s Signed Major Sales Contract □Applicable □√Not Applicable (e) Composition of Operating Cost Unit: RMB Product 2020 FY 2019 FY YOY Change（%） Cost Proportion (%) Cost Proportion (%) Vehicle 25,638,598,860 93.17% 22,303,937,803 90.92% 14.95% Components 1,250,772,343 4.54% 1,696,042,274 6.92% -26.25% Automobile Maintenance Services 95,282,459 0.35% 98,395,291 0.40% -3.16% Material & Others 533,856,251 1.94% 432,481,782 1.76% 23.44% (f) Whether Consolidated Scope was Changed During the Reporting Period □√Yes □No JMC Heavy Duty Vehicle Co., Ltd., a whole-owned subsidiary of JMC, was separated per vehicle and engine business into the surviving company “JMC Heavy Duty Vehicle Co., Ltd.” and the derived new company “Taiyuan Jiangling Power Co., Ltd.” in August 2020. After the separation, JMC Heavy Duty Vehicle Co., Ltd. and the new derivative company Taiyuan Jiangling Power Co., Ltd. are included in the consolidated scope. (g) Major Change or Adjustment on Business, Products or Services During the Reporting Period □Applicable □√Not Applicable (h) Main Customers and Suppliers Top 5 Customers: Total sales value to top 5 customers（RMB） 4,061,691,344 Accounted for the proportion of JMC’s total annual turnover 12.27% Included related party transaction accounted for the proportion of JMC’s total annual turnover 4.55% No. Name of the Customer Sales Value (RMB) Percentage of JMC’s Total Turnover (%) 1 Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 1,505,218,690 4.55% 2 Zhejiang Jiangling Motors Sales Company 1,084,917,009 3.28% 3 Hunan Transit Jiangling Motors Sales Company 534,725,621 1.62% 4 Beijing Jinglingshun Auto Sales Company 493,165,189 1.49% 5 Shanghai Keda Zhoupu Auto Sales Company 443,664,835 1.34% Total 4,061,691,344 12.27% Other introduction to main customers □√Applicable □Not Applicable Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. is a related party of the Company. VP Li Xiaojun holds the position of Director of Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Top 5 Suppliers: Total purchase value from top 5 suppliers（RMB） 4,767,424,905 Accounted for the proportion of JMC’s total annual purchase amount 19.38% Included related party transaction accounted for the proportion of JMC’s total annual purchase amount 11.26% No. Name of the Supplier Purchase Value (RMB) Percentage of JMC’s Total Annual Purchase Amount (%) 1 Bosch Auto Diesel System (Wuxi) Company 1,220,870,750 4.96% 2 Nanchang Baojiang Steel Processing Distribution Co., Ltd. 963,538,705 3.92% 3 Jiangxi Jiangling Chassis Co., Ltd. 925,826,174 3.76% 4 Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 880,431,974 3.58% 5 Bosch Automotive Diesel System Co., Ltd. 776,757,302 3.16% Total 4,767,424,905 19.38% Other introduction to main suppliers □√Applicable □Not Applicable Among the top five suppliers, except Bosch Auto Diesel System (Wuxi) Company and Bosch Automotive Diesel System Co., Ltd., the other three suppliers are related parties of the Company. III. Expense Analysis Unit: RMB 2020 2019 YOY Change Distribution Expenses 1,544,737,028.00 1,525,883,194.00 1.24% Administrative Expenses 1,012,347,173.00 955,566,805.00 5.94% Finance Income-net -197,567,513.00 -189,506,963.00 -4.25% R & D Expenses 1,343,812,092.00 1,776,320,646.00 -24.35% IV. Research & Development In 2020, the Company is committed to the research and development of new products, and the R & D expenditure will be mainly used for the development of new product projects and meeting the requirements of policies and regulations. This includes new models, new loads, new profiles, power enhancements, and meeting government environmental and safety regulations. These competitive R&D expenditures will ensure solid growth in sales and profitability in the future. R&D expenditures in 2020 were RMB 1.665 billion, accounting for 15.15% of the Company's net assets and 5.03% of operating revenue. R&D 2020 2019 Change (%) R&D Staff (person) 2,393 2,758 -13.23% R&D Staff as % of Total Employees 17.73% 18.65% -0.92% R&D Investment (RMB) 1,664,559,872 1,937,077,557 -14.07% R&D Investment as % of Revenue 5.03% 6.64% -1.61% Capitalization of R&D Investment 320,747,780 160,756,911 99.52% Capitalization of R&D Investment as % of R&D Investment 19.27% 8.30% 10.97% Major change of R&D Investment as % of revenue □Applicable □√Not Applicable Major change of Capitalization of R&D Investment □√Applicable □Not Applicable Reason of the change is due to the increase in the amount of R & D investment eligible for capitalization this year. Please refer to "note II (14) (E) research and development of financial statements" and "note IV (14) intangible assets" in "section XII financial report" for details. V. Cash Flow Analysis RMB Item 2020 2019 Change (%) Cash received from operating activities 35,570,910,131.00 32,798,796,157.00 8.45% Cash outflows from operating activities 31,872,567,303.00 30,061,928,919.00 6.02% Net cash flows from operating activities 3,698,342,828.00 2,736,867,238.00 35.13% Cash received from investing activities 15,608,879,156.00 9,464,689,154.00 64.92% Cash outflows from investing activities 17,522,317,586.00 10,829,783,077.00 61.80% Net cash flows from investing activities -1,913,438,430.00 -1,365,093,923.00 -40.17% Cash received from financing activities 2,291,211,222.00 200,000,000.00 1,045.61% Cash outflows from financing activities 1,892,097,149.00 250,716,633.00 654.68% Net cash flows from financing activities 399,114,073.00 -50,716,633.00 886.95% Net increase/(decrease) in cash and cash equivalents 2,184,018,471.00 1,321,056,682.00 65.32% Explanation on the major factors regarding major change of related data □√Applicable □Not Applicable Year on year increase of the net cash flow generated by operating activities reflected the increase in cash received from the sale of goods and the provision of services as a result of the increase in income. Year on year decrease of the net cash flow from investment activities was mainly due to the purchase of structured deposits. Year on year increase of the net cash flow from financing activities was mainly attributable to the increase in the bank's short-term lending business. Year on year increase of the net increase in cash and cash equivalents was mainly attributable to the increase in net cash flow from operating activities. Explanation on significant difference between net cash generated from operating activities and net profit during the reporting period. □Applicable □√Not Applicable 3. Non- core business analysis □√Applicable □Not Applicable Unit: RMB Item Amount Proportion of PBT Explanation Sustainability （Y/N） Impairment of Assets 681,884,784 150.97% It’s mainly due to the accrued assets impairment provisions concerning the relevant assets that will be discontinue used, because of the business restructuring of JMC Heavy Duty Vehicle Co., Ltd., a wholly-owned subsidiary of JMC; and the spare parts, equipment and molds that are not expected to be used, resulting from the Company’s Qingyunpu Factory Relocation Project. N Non Operating Expenses 172,753,545 38.25% It mainly reflects, as a result of business restructuring of the wholly owned subsidiary JMC Heavy Duty Vehicle Co., Ltd., related land and above-ground building disposal loss. N 4. Analysis of Assets and Liabilities I. Major changes Unit: RMB Asset item December 31, 2020 December 31, 2019 YOY Major Changes Explanation Proportion change Amount Proportion Amount Proportion (Points) Cash at bank and on hand 11,121,955,129 39.46% 8,937,936,658 36.78% 2.68% Accounts receivables 2,999,883,212 10.64% 2,208,236,620 9.09% 1.55% Inventories 2,086,605,692 7.40% 1,946,869,092 8.01% -0.61% Long-term equity investments 39,496,548 0.14% 40,934,557 0.17% -0.03% Fixed assets 5,165,956,410 18.33% 5,714,489,577 23.52% -5.19% Construction in progress 1,535,497,770 5.45% 1,498,124,778.00 6.17% -0.72% Short-term borrowings 500,000,000 1.77% - - 1.77% Increased short- term lending by banks Long-term borrowings 2,563,666 0.01% 3,197,814 0.01% - II. The fair value of the assets and liabilities. Unit: RMB Item financial assets 1.Trading financial assets (excluding derivative financial assets) 2.Receivables financing Subtotal Financial liabilities Beginning of the period - 289,044,373 289,044,373 545,632 Loss/profit in faire value in the period 3,892,985 - 3,892,985 3,171,095 Cumulative changes in fair value recorded into equity - - - - Impairment in the period - - - - Purchase in the period 16,107,000,000 2,325,165,208 18,432,165,208 - Sell in the period 15,307,000,000 1,798,625,912 17,105,625,912 - Other changes - - - - End of the period 803,892,985 815,583,669 1,619,476,654 3,716,727 Whether there is a significant change in the measurement attributes of the Company's main assets during the reporting period □Applicable √Not Applicable III. Restriction on Assets Rights as of the End of the Reporting Period There was no major restriction on assets rights as of the end of the reporting period. 5. Investment I. Summary （未完）  |