2023-08-30-深交所-长_安Ｂ_2023年半年度报告（英文版）_163页_1mb

Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Summary

Core Content Overview

This report outlines the performance and strategic direction of Chongqing Changan Automobile Co., Ltd. (Changan Auto) for the first half of 2023. It includes information on the company's financial results, core competencies, market performance, and governance structure, while also addressing key risks and future development strategies.

Main Financial Indexes

Key Accounting Data (First Half of 2023 vs. Same Period of 2022)

Non-Recurring Gains and Losses

• No cash dividends, bonus shares, or share conversions from capital reserves were planned for the first half of 2023.
• The report is available in both Chinese and English, with the Chinese version taking precedence in case of discrepancies.

Main Business Overview

Business Scope

Changan Auto operates in the automotive industry, covering R&D, manufacturing, and sales of vehicles, as well as engine R&D and production. It has also expanded into new business areas such as mobility, car services, new marketing, and battery swapping, aiming to build a comprehensive industrial ecology and become an intelligent low-carbon mobility technology company.

Product Portfolio

• Homegrown Brands: Changan Auto, Kaicheng Automobile.
• New Energy Vehicle (NEV) Brands: Avatr, Deepal, Changan Qiyuan.
• Joint Venture Models: Changan Ford, Changan Mazda.
• Iconic Models: CS series, EADO series, UNI series, Ford Edge L, Explorer, Lincoln Nautilus, Mazda CX-50, CX-5, etc.
• NEV Models: Deepal SL03, Deepal S7, Avatr E11, UNI-V iDD, Lumin.

Market Performance

• Total sales volume reached 1.216 million units, up 8.0% YoY.
• Exported 116,218 units overseas.
• Self-owned NEV sales reached 176,057 units, up 107.2% YoY.
• Passenger brand (ICE) sales ranked first among Chinese homegrown brands.
• CS75 series sales ranked first in the compact SUV segment.
• EADO PLUS remained first in compact sedan (ICE) for three consecutive months.
• Deepal SL03 ranked second in new energy medium-sized sedans.

Strategic Initiatives

• Launched the "Vast Ocean Plan" to expand overseas markets.
• Implemented the "Third Business Venture — Innovation & Entrepreneurship Program".
• Focused on product innovation, digital transformation, and intelligent manufacturing.

Core Competencies

1. Technology R&D Capability

• Committed to innovation-driven development.
• Built intelligent core capabilities in "chips, control units, mapping, components, cloud, network, and algorithms".
• Completed the SDA-S platform development.
• Achieved new breakthroughs in product development and technological innovation.
• Possesses 9,869 global patents, including 2,658 invention patents.

2. Product Definition

• Aims to build an industry-leading product definition system.
• Employs experience-driven EMD scenario definition approach.
• Key products such as CS75 series, UNI-V, Eado series, Deepal SL03, and S7 are selling well.
• Continues to focus on core use cases and product lineup optimization for electrification.

3. Brand Power

• Strengthened brand value management and innovative promotion.
• Launched Deepal S7, third-generation CS75PLUS, and other models, achieving over 1 billion brand reaches.
• Recognized as "Leading Homegrown NEV Brand" by China Media Group.
• Won first place among Chinese homegrown brands in J.D. Power's 2023 Sales Satisfaction Index.

4. Intelligent Manufacturing

• Implemented the "Cloud, Network, Platform, and Scenarios" strategy.
• Applied 5G, digital twin, and AI machine vision in new plants.
• Built over 40 intelligent manufacturing scenarios in Nanjing and Chongqing Yubei.
• Expanded NEV component production capacity.

5. Leading Culture

• Promotes entrepreneurial culture and employee mental health.
• Launched cultural promotion programs, including speech contests and oral history interviews.
• Supported rural revitalization and poverty alleviation in Yunnan and Chongqing.

6. Mechanism and Efficiency

• Strengthened talent team and organizational restructuring.
• Optimized incentive plans, including restricted stock and co-investment.
• Accelerated digital transformation and efficiency improvement across all business units.

Key Risks and Countermeasures

• The Management Discussion and Analysis chapter highlights potential risks such as weak consumption, subsidy withdrawal, and market fluctuations.
• The company has taken proactive measures such as increasing stock, implementing price strategies, and enhancing brand promotion to counter these risks.
• It emphasizes the importance of technology leadership, product innovation, and market expansion in maintaining competitiveness.

Governance and Social Responsibility

• The company has a clear governance structure and transparent information disclosure.
• It has no changes in registration or office addresses, contact information, or disclosure channels.
• Committed to social responsibility, including rural revitalization, poverty alleviation, and employee welfare.
• Provided RMB 10.6 million in assistance funds for rural development.

Conclusion

Chongqing Changan Automobile Co., Ltd. has shown strong growth in the first half of 2023, with a 15.76% increase in operating revenue and 30.65% increase in net profit. The company is actively pursuing innovation, international expansion, and digital transformation to strengthen its position in the automotive industry. Despite challenges like subsidy withdrawal and market fluctuations, Changan has implemented strategic measures to enhance its market share, brand recognition, and operational efficiency.