Interim report
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1 Jiangling Motors Corporation, Ltd. 2026 Half-year Report 2026-08
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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.
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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
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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
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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
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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 stateme nts 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
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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 i tems 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
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8 Chapter III Management Discussion and Analysis 1. Company’s Core Business During the Reporting Period JMC is a comprehensive automotive manufacturer inte grating 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, weld ing, 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, ser vice, 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.
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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 vehic le 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 portfo lio of light bus, lig ht truck, and Pickup. JMC light buses address the needs of freight transport, passenger transport, and specialized modifications, while strengthening the synergy
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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 dua l-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 e nhance 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 Bron co 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 de livery 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 t he transformation of its commercial vehicle products into smart mobile terminals.
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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%
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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
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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
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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
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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 actu al 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 sig ned 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 cause d 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.
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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 trac king 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 requirem ents 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
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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.
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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 penet ration, 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, posi ng 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 w ill 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
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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 conne cted 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 independe ntly 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 m aterials 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 competitiven ess 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 cost s, 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.
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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
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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
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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 revit alization, 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 ef fectively addressed local transportation difficulties and contributed JMC's strength to the comprehensive revitalization of rural areas.
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23 Chapter V Major Events 1. Commitments by actual controlling parties, s hareholders, 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 c ommitment by actual controlling parties, s hareholders, 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
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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
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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
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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
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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
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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
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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 s hares 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
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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.
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31 Chapter VII Bond related Information □Applicable Not Applicable
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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.]
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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
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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
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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
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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
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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
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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
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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 p rovision 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.
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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 C ompany 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.
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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 partici pation 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 shareho lders 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 r elevant 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.
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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 natur e 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.
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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 en tirely 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 c ontractual 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.
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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 te rms 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 finan cial 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 s ell 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 measure d 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:
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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 valu e, 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 a t 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 chan ges 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.
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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 s heet 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.
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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 i n 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.
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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 cons olidation 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 b e 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 us ing 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.
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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 th e 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 meth od 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 f air 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 tra nsaction 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 c hanges 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.
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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 t he 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 amo unt 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 accept ance 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.
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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 b e 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
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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 product ion 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.
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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 t he 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 syner gies 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 lo wer 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.
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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.
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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 unilateral ly 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 r etirement 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 b enefits 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.
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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 t ransaction 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 o n 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, an d related revenue is recognised at contract consideration net of the discount amount estimated based on historical experience and using the expected value method.
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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 acco unts 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 liabilitie s 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 deferr ed 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.
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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 t he 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 rev ersal 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.
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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 l ikely 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 ad justed 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.
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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 fix ed 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 reco gnise 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 t he 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 in itial 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 rec ognized in profit or loss for the current period when they are actually incurred.
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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 unobser vable 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 as sets 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.
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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 signific ant 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, macroec onomic 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.
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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 p lanning 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, curr ent 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 balan ce sheet date and determined the projected liabilities based on the re-assessed warranty rates.
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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 appli cable 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.
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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
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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%
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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 RMB 101,673,142 (31 December 2025 : RMB 103,231,811), 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.
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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
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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
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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.
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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 n otes, 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 RMB 797,009,380 and RMB3,892,639,938(2026: RMB1,698,864,617 and RMB7,692,252,503) respectively, and the related losses on discount of RMB 6,180 ( 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).
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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
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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:
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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
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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
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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 com pletion, 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.
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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 lo nger 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).
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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 RMB 583,438,289 (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 RMB 530,345,081, RMB1,360,355, RMB 22,714,791 and RMB29,018,062 (the six months ended 30 June 2025: RMB492,673,591, RMB 2,314,697, RMB26,170,440 and RMB31,671,058), respectively. The costs of fixed assets transferred from construction in progress amounted to RMB 300,878,191 (the six months ended 30 June 2025: RMB838,710,612).
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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 RMB 1,108,465,781) ( 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 RMB 999,741,657, 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
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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
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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
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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
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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.
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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).
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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
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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
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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.
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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 : RMB 717,410,426), 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
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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
Page 90
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 RMB 1,886,038 (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
Page 91
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 RMB 1,898,140,637 (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
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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.
Page 93
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
Page 94
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
Page 95
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 t he restricted conditions.
Page 96
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.
Page 97
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) - - - - -
Page 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] 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 surp lus 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
Page 99
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 2 5, 202 6, the Company's 202 5 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 th e 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 RMB 1,022,005,379, of which the Group expects that RMB 204,378,689 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)).
Page 100
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
Page 101
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
Page 102
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
Page 103
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
Page 104
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 ordina ry 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.
Page 105
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
Page 106
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)
Page 107
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
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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
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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).
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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
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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 attri butable 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)
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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
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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.
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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 RMB 8,757,404,627, 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).
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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
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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
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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
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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.
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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.
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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
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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 USD 196,453. As at 30 June 2026 , JMCG provided borrowing guarantee to the bank borrowing of USD 98,226, equivalent to RMB 669,010 (31 December 2025: USD 130,968 equivalent to RMB920,551) for the Group.
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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%).
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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
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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
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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
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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
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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
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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
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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 establishi ng 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 th e 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 w hether 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 USD 98,226, equivalent to RMB 669,010. 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.
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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)
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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 liabili ties 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 : RMB 1,950,000,000) were fixed -rate borrowings, and long -term borrowings of USD 98,226 (31 December 2025 : USD 130,968) 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 adjustme nts 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.
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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 G roup 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
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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:
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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.
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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%
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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%
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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 RMB 524,807,454, RMB 1,358,073,621 and RMB6,960,300 (31 December 2025 : RMB529,737,786, RMB 1,385,321,982 and RMB6,960,300). The Company has individually assessed the receivable from J MC & 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).
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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 RMB 63,365,929 (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
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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
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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
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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%
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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.
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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.
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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
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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 - -
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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.
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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.
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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