2016-04-18-深交所-长_安Ｂ_2015年年度报告（英文版）_207页_2mb

Chongqing Changan Automobile Company Limited 2015 Annual Report Summary

Core Content Overview

This document is the 2015 Annual Report of Chongqing Changan Automobile Company Limited, providing a comprehensive overview of the company's financial performance, business operations, and strategic direction. The report includes important notices, company profile, main financial indexes, business analysis, and governance information.

Main Financial Indexes

Financial Highlights (2015 vs. 2014)

• Operating Revenue: RMB 66,771,580,527.66 (up 26.19%)
• Net Profit (Shareholders): RMB 9,952,714,168.09 (up 31.63%)
• Net Profit (after non-recurring items): RMB 9,560,013,288.84 (up 31.34%)
• Net Cash Flow from Operating Activities: RMB 5,414,890,769.50 (up 43.25%)
• Basic Earnings Per Share: RMB 2.13 (up 31.48%)
• Return on Equity (ROE): 33.14% (down 1.06% from 2014)

Year-End Financial Data (2015 vs. 2014)

• Total Assets: RMB 89,413,988,669.66 (up 28.31%)
• Net Assets (Shareholders): RMB 34,385,189,070.36 (up 34.12%)

Key Business Analysis

Main Business Overview

• The company focuses on the development, production, and sales of vehicles and sedans, as well as the manufacturing of automotive engine series products.
• Main products include CS series sedans, SUVs, Raeton series, Eado series, Alsvin series, commercial cars of Honor, Oulove, Changan Star series, and Oushang MPV.

R&D and Innovation

• R&D investment reached RMB 37.8 billion during the 12th Five-Year Plan, covering 16 areas including vibration noise, collision safety, braking performance, chassis testing, and driving systems.
• Built 194 international advanced laboratories, including two Key State Laboratories.
• Constructed the Changan Dianjiang car-testing ground, the largest in Western China and internationally first-class.
• The company actively improved its R&D system, established four R&D systems (CA-TDS, CA-PAS, CA-PDS, CA-PIS), and developed a product test and verification system (CA-TV) to meet user needs for 10 years / 26 million kilometers.
• The R&D coverage reached 70%, and CAE simulation coverage reached 68%.

Strategic Initiatives

• Changan focused on five important technical tags: "Fashion, Safety, Intelligence, Energy Saving, and Environmental Protection."
• Acquired leading positions in styling, impact safety, and NVH (Noise, Vibration, Harshness) in China.
• Implemented the "654" intelligent strategy, aiming to build six system platforms, five core technologies, and achieve four stages of intelligent development.
• Joined the MTC (Most Advanced Technology in the United States Smart Car Alliance) as the only Chinese brand.
• Developed plug-in hybrid and pure electric technology platforms and aimed for the "518" performance in the new energy domain by 2025.

Product Performance

• CS75, CS35, EADO series, and Yue Xiang series achieved monthly sales exceeding 10,000 units, becoming star products.
• EADO won the 2015 China Automobile Industry Research Title for the most potential Chinese models.
• Yue Xiang V7 won the "Annual Innovative Product" award at the 2015 China Automobile Media Think Tank Innovation Forum.
• Changan ranked first in R&D strength in the automotive industry and fourth in China for 8 consecutive years.

Business Operations and Market Performance

• In 2015, the company and its affiliated enterprises produced 2,781,368 vehicles and sold 2,776,514 vehicles, up 5.86% and 9.14% respectively.
• Market share reached 11.30%, up 0.46% from 2014.
• Independent brand cars sold 1,007,000 units, up 30.9%, ranking first in the Chinese automobile market.

Cost and Expenses

• Business Tax and Surcharges: RMB 294,158 (up 42.49%)
• Selling Expenses: RMB 495,452 (up 13.71%)
• General & Administration Expenses: RMB 489,921 (up 30.93%)
• Financial Expenses: RMB -15,081 (down 328.26%)
• Income Tax Expense: RMB 8,933 (up 328.44%)

The increase in business tax and surcharges was due to higher consumption tax from increased sales and higher tax rates on certain vehicles. Selling expenses increased with sales growth. Administration expenses rose due to increased labor and travel costs. Financial expenses decreased due to higher bank deposits and lower loans. Income tax increased due to higher net profits.

Non-Recurring Items and Amounts

• Total non-recurring items in 2015 amounted to RMB -343,140,679.34.
• Government subsidies amounted to RMB 441,926,607.20.
• Other non-recurring items included RMB 16,816,296.11 in 2015, RMB 40,605,150.13 in 2014, and RMB 2,181,517.38 in 2013 (restated).

Main Customers and Suppliers

• Top 5 Customers: Total sales value RMB 6,863,714,888.47, accounting for 10.28% of annual sales.
• Top 5 Suppliers: Total purchase value RMB 6,579,463,590.29, accounting for 13.34% of annual purchases.

Other Key Information

• The company's financial statements were verified by ERNST & YOUNG Hua Ming LLP.
• The accounting firm and financial consultant were not applicable for persistent supervision in the reporting period.
• The company did not base its definition of recurring profit or loss on the "Public offering of securities information disclosure of the company's information disclosure announcement No. first - non recurring gains and losses".
• The report includes a disclaimer that future business plans and development strategies are not virtual commitments and investors should be aware of the risks.

Conclusion

The 2015 Annual Report highlights Changan's strong financial performance, significant R&D investment, and strategic focus on technological innovation and market expansion. The company demonstrated resilience in the face of market competition and macroeconomic challenges, with substantial growth in both revenue and net profit. Changan's emphasis on intelligent and new energy vehicle development, along with its strong brand presence and market share, underscores its position as a leading automotive manufacturer in China.