Interim report
Page 1
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport Chongqing Changan Automobile Company Limited 2026 Semi-Annual Report August 2026
Page 2
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 1 Chapter 1 Important Notices, Contents, and Definitions 1. The Board of Directors (or the “Board”), the Supervisory Board as well as the directors, supervisorsandseniormanagersofChongqingChanganAutomobileCo.,Ltd.herebyguaranteethe factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointlyand severally liable for any misrepresentations, misleading statements or material omissions therein. 2. Zhu Huarong, the Company’s legal representative, Ni Erke, the Company’s Chief Financial Officer and Shi Haifeng, the person-in-charge of the accounting organ hereby guarantee that the financialstatementscarriedinthisReportarefactual,accurateandcomplete. 3. Except the following directors, all the directors have attended the board meeting for reviewing thisReport. Nameofthedirectors absent Positions Reasonsfortheabsence NameoftheTrustees YangXinmin Independentdirector Reasonforwork TangGuliang 4. Any prospective description such as future business plans and development strategies in this Report shall not be considered as the Company’s commitment to investors. Investors and relevant persons shall besufficientlymindful ofrisks,andundertake thedifference inplans, predictionsand commitment. 5. Chapter III “Management Discussion and Analysis” of this Report describes the possible risks andcountermeasuresoftheCompany,andinvestorsshallpayattentiontotherelevantcontent. 6.Thecompanyplansnottodistributecashdividends,nottoissuebonusshares,andnottoincrease sharecapitalbycapitalizingcapitalreserves. ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesor misunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Page 3
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 2 CONTENTS Chapter1 ImportantNotices,Contents,andDefinitions............................................1 Chapter2 CompanyProfileandKeyFinancialIndexes............................................4 Chapter3 ManagementDiscussionandAnalysis.......................................................7 Chapter4 CorporateGovernance,Environmental,andSocialResponsibility........24 Chapter5 ImportantMatters.....................................................................................31 Chapter6 ShareChangesandShareholderInformation..........................................37 Chapter7 Bonds........................................................................................................43 Chapter8 FinancialReport.......................................................................................46
Page 4
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 3 Directory of Reference Documents I.FinancialstatementscarryingthesignaturesandsealsoftheCompany’slegalrepresentative,theChiefFinancial Officer,andtheperson-in-chargeoftheaccountingorgan. Ⅱ. During the reporting period, the original copies of all company documents and announcements publicly disclosed by the Company in China Securities Journal, Securities Times, Securities Daily, Shanghai Securities News, and Hong Kong Commercial Daily. Definitions Items Definitions Changan Auto, Changan Automobile,theCompany Refersto ChongqingChanganAutomobileCo.,Ltd. DeepalAuto Refersto DeepalAutomotiveTechnologyCo.,Ltd.,asubsidiarycompanyoftheCompany. ChanganKaicheng Refersto Chongqing Changan Kaicheng Automotive Technology Co., Ltd., a subsidiary of the company. ChanganFord Refersto ChanganFordAutomobileCo.,Ltd.,ajointventureofthecompany. ChanganMazda Refersto ChanganMazdaAutomobileCo.,Ltd.,ajointventureofthecompany. Avatr Refersto AvatrTechnology(Chongqing)Co.,Ltd.,anassociatecompanyofthefirm.
Page 5
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 4 Chapter 2 Company Profile and Key Financial Indexes I. Company Profile StockAbbreviation ChanganAutomobile,ChanganB Stocktickersymbol 000625,200625 Stocklistedstockexchange ShenzhenStockExchange Thecompany'sChinesename 重庆长安汽车股份有限公司 Companyabbreviationin Chinesename 长安汽车 CompanynameinEnglish ChongqingChanganAutomobileCompanyLimited Legalrepresentative ZhuHuarong II. Contact Person and Contact Information SecretaryoftheBoardofDirectors SecuritiesAffairsRepresentative FullName NiErke JieZhonghua ContactAddress BuildingT2,FinancialCityNo.2,No.61 DongshengmenRoad,JiangbeiDistrict, ChongqingMunicipality BuildingT2,FinancialCityNo.2,No.61 DongshengmenRoad,JiangbeiDistrict, ChongqingMunicipality Telephone 023-67594008 023-67594008 Facsimile 023-67870261 023-67870261 Electronicmailbox cazqc@changan.com.cn jiezh@changan.com.cn III. Other 1. Contact information Whetherthecompany'sregisteredaddress,officeaddressandtheirpostalcodes,companywebsite,andemailaddresshavechanged duringthereportingperiod. □Applicable√NotApplicable Thecompany'sregisteredaddress,officeaddressandtheirpostalcodes,website,andemailaddressremainedunchangedduringthe reportingperiod;fordetails,pleaserefertothe2025AnnualReport. 2. Information disclosure and preparation place Whethertheinformationdisclosureanddesignatedlocationfordocumentshavechangedduringthereportingperiod. □Applicable√NotApplicable Thewebsiteofthestockexchangewherethecompanydisclosesitssemi-annualreport,thenamesandURLsofthemedia,andthe locationwherethecompany'ssemi-annualreportiskeptremainedunchangedduringthereportingperiod;forspecificdetails,please
Page 6
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 5 refertothe2025AnnualReport. 3. Other relevant materials Whethertherewereanychangestootherrelevantinformationduringthereportingperiod. □Applicable√NotApplicable IV. Key Accounting Data and Financial Indexes Doesthecompanyneedtoretrospectivelyadjustorrestateprior-yearaccountingdata? □Yes√No Thisreportingperiod Thesameperiodlast year YoYchange(%) OperatingRevenue(RMB) 65,634,329,742.16 72,691,310,387.08 -9.71% Net profit attributable to shareholders ofthelistedcompany(inRMB) 817,395,511.85 2,291,211,254.67 -64.32% Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (in RMB) 250,826,676.62 1,476,706,514.95 -83.01% Net cash flow from operating activities(inRMB) -11,413,452,268.37 -8,607,196,790.27 -32.60% Basicearningspershare(RMB/share) 0.08 0.23 -65.22% Diluted earnings per share (RMB/share) 0.08 0.23 -65.22% Returnonweightedaveragenetassets 1.06% 3.00% -1.94% Attheendofthe reportingperiod. Attheendofthe previousfiscalyear YoYchange(%) TotalAssets(RMB) 187,688,708,189.96 202,961,073,175.76 -7.52% Net assets attributable to shareholders ofthelistedcompany(inRMB) 76,036,878,508.59 77,336,177,858.02 -1.68% V. The Differences between Chinese Accounting Standards and International Financial Reporting Standards 1. Differences in net profit and net asset attributable to shareholders in financial report disclosed in accordance with International Financial Reporting Standards and Chinese Accounting Standards. □Applicable √Notapplicable Nodifferenceduringthereportingperiod. 2. Differences of net profit and net assets disclosed in financial reports prepared under Overseas Financial Reporting Standards and Chinese Accounting Standards.
Page 7
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 6 □Applicable √Notapplicable Nodifferenceduringthereportingperiod. 3. Reasons for differences in accounting data under Chinese Accounting Standards and International Financial Reporting Standards. □Applicable √Notapplicable VI. Items and Amounts of Non-Recurring Gains and Losses √Applicable□NotApplicable Unit:RMB Item Amount Instructions Gainsorlossesfromthedisposalofnon-liquidassets(includingthe reversalofpreviouslyaccruedassetimpairmentprovisions) 75,172,176.38 Governmentgrantsrecognizedinthecurrentperiod'sprofitorloss, excludingthosecloselyrelatedtothecompany'snormaloperating activities,compliantwithnationalpolicyregulations,granted accordingtoestablishedstandards,andhavingasustainedimpacton thecompany'sprofitorloss. 99,005,867.00 Apartfromeffectivehedgingactivitiesrelatedtothenormalbusiness operationsofthecompany,thegainsorlossesarisingfromchangesin fairvalueoffinancialassetsandfinancialliabilitiesheldby non-financialenterprises,aswellasthegainsorlossesfromthe disposaloffinancialassetsandfinancialliabilities. 40,186,067.03 Financingchargesleviedonnon-financialenterprisesthatareincluded incurrentperiodprofitorloss. 63,731,822.45 Reversalofimpairmentprovisionforreceivablestestedindividuallyfor impairment. 9,318,582.52 Gainsarisingfrombusinesscombinationsnotundercommoncontrol. 161,016,229.92 Othernon-operatingincomeandexpensesotherthanthoseitems mentionedabove. 9,823,432.08 Otherincomeandexpenseitemsthatconformtothedefinitionof non-recurringgainsandlosses. 152,504,327.43 Less:Incometaxeffect 14,770,091.44 Impactofnon-controllinginterests(netoftax) 29,419,578.14 Total 566,568,835.23 Detailsofotherprofitandlossitemsthatconformtothedefinitionofnon-recurringgainsandlosses: √Applicable□NotApplicable InaccordancewithInterpretiveAnnouncementNo.1onInformationDisclosurebyCompaniesOfferingSecuritiestothePublic RegardingNon-recurringGainsandLosses,non-recurringgainsandlossesofinvesteeunitsattributabletotheCompany'sshareof equity-accountedinvestmentincomearerecognized. ExplanationoftheCircumstancesRegardingtheReclassificationofNon-recurringProfitandLossItemsListedinthe"Interpretive AnnouncementNo.1onInformationDisclosurebyCompaniesOfferingSecuritiestothePublic"asRecurringProfitandLossItems. □Applicable√NotApplicable Nosuchcasesforthereportingperiod.
Page 8
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 7 Chapter 3 Management Discussion and Analysis I. The main business of the Company in the reporting period 1. Business overview Our company operates within the automotive manufacturing sector, with core business activities encompassing the research, development, manufacturing, and sales of complete vehicles, as well as the research and production of engines. The company is actively developing "three-electric" technologies represented by batteries, motors, and electronic control systems, intelligent technologies such as smart cockpits and autonomous driving, and new businesses including automotive life services, new marketing models,andbatteryswappingservices; itisacceleratingexplorationintoindustrial financeandtheusedcarsector,whileproactively laying out emerging fields like embodied intelligence and the low-altitude economy to drive the enterprise's transformation into a smartandlow-carbonmobilitytechnologycompany. Our company remains committed to the mission of "leading automotive civilization and benefiting human life," steadfastly advancing the "Third Entrepreneurship - Innovation and Entrepreneurship Plan," accelerating the transformation into an intelligent low-carbon mobility technology company, and striving to become a world-class automotive brand. The company is actively developing intelligent connected new energy vehicles, establishing three digital intelligence new energy brands: Avatr, Deepal, and Changan NEVO, while simultaneously creating the Changan Automobile and Changan Kaicheng brands to address the needs of global mainstream internal combustion engine vehicle users and commercial markets, and further expanding its portfolio of joint venturebrandsthroughpartnershipssuchasChanganFordandChanganMazda.Inthetraditionalinternalcombustionenginevehicle sector,thecompanyhaslaunchedaseriesofclassicindependentbrandmodelsincludingtheCS,Eado,andUNIseries,whileitsjoint ventures have introduced multiple well-known products such as the all-new Mondeo, all-new Nautilus, CX-5, and Mazda3. In the newenergysector,thecompanyhasdedicatedlydevelopedacomprehensiveportfolioofnewenergyvehicles,includingtheChangan NEVO Q07, Changan NEVO A07, Changan NEVO Q06, Changan NEVO A06, Changan NEVO Q05, Deepal S09, Deepal S07, Deepal L06, Deepal S05, Deepal G318,Avatr 12,Avatr 11,Avatr 07L,Avatr 06, Changan Mazda EZ-60, Changan Kaicheng V919, andChanganHunter,withacommitmenttoprovidingconsumerswithsuperiorproductsandservices. The company is resolutely advancing the synergistic development of its independent and joint ventures, leveraging its own-brand automotive businesses includingAvatr,Deepal, Changan NEVO, ChanganAutomobile, and Changan Kaicheng to firmly establish flagship products, while utilizing joint ventures such as Changan Ford and Changan Mazda to continuously deepen mutual trustandcooperationwithpartnersandexplorenewcollaborativeopportunitiesonaglobalscale. 2. Industry situation In the first half of 2026, the century-old global transformation accelerated, and the strategic competition among major powers became increasingly complex and intense. Faced with a complex situation, China has precisely and effectively implemented more proactive and capable macroeconomic policies and developed new quality productive forces in accordance with local conditions. China's economy has withstood pressure, maintained overall stability, and continued its development trend towards newness and optimization,demonstratingstrongresilienceandvitality. Year-to-date, the automotive industry has maintained overall stability with a slight contraction in market size; cumulative sales from January to June reached 15.017 million units, representing a year-on-year decline of 4.1%. The market share of new energy vehicles (NEVs) and internal combustion engine (ICE) vehicles has further diverged: NEVs accounted for 51.3% of the domestic market in the first half of the year, an increase of 4.5 percentage points year-on-year, while NEV exports surged by 122.3% year-on-year. Conversely, the domestic market for ICE vehicles shrank by 27.8% year-on-year, with its market share continuing to contract. In the context of a sluggish domestic automotive market, exports have emerged as the industry's most critical "stabilizer"
Page 9
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 8 and "ballast stone." While the top ten automotive groups all recorded year-on-year declines in the domestic market, their export markets maintained high growth rates exceeding 30%. Chinese brands have firmly grasped the two key drivers of new energy vehicles and exports, maintaining a cliff-like market share advantage over joint-venture brands; from January to June, sales of Chinese-brand passenger cars reached 9.138 million units, accounting for 71.8% of the market share, a year-on-year increase of 3.3 percentage points, continuing to lead theindustry. It is worth noting that since thebeginning ofthisyear,significant increases in the costs of key raw materials and components have forced enterprises to raise prices in response; specifically, lithium carbonate prices have returned to high levels in the first half of the year, while copper prices have remained persistently elevated. Furthermore, the explosive surge in AI computing power demand has encroached upon storage wafer production capacity, resulting in a supply-demandimbalanceforautomotive-gradestoragechipsandtriggeringasharppricesurge. At the policy-driven level, first, in the first half of the year, the phase-out of the new energy vehicle purchase tax exemption (shifting from full exemption to a 50% reduction) led to a certain degree of premature release of market demand, with a significant impact on certain vehicle models (the new energy micro-sedan market, the passenger car segment with the largest decline, fell by 68.3% year-on-year); second, we deepened the implementation of the "two new" policies by optimizing fund allocation, unifying subsidy standards, and balancing fund usage to continuously amplify the policy effectiveness of stabilizing investment, expanding consumption, promoting transformation, and benefiting people's livelihood; third, we focused on industry sectors with prominent issues, deployed a "combination of measures" in price and anti-unfair competition regulation and law enforcement to foster a sound marketecosystem,anddroveenterprisestoshiftfrom"competingonprice"to"competingonquality." (The above data and information are sourced from the "China Automotive Industry Production and Sales Quick Report" publishedbytheChinaAssociationofAutomobileManufacturers,industryinformationreleases,andpubliclyavailablechannels.) 3. Enterprise market performance 2026markstheinauguralyearofthe15thFive-YearPlan;inthefirsthalfoftheyear,ChanganAutomobilesteadfastlyadvanced its "Third Entrepreneurship – Innovation and Entrepreneurship Plan 9.0," accelerated the implementation of its "13336" strategic layout, and leveraged the synergistic efforts of three major initiatives to anchor breakthroughs in strategic depth. In the first half of 2026, amid a sector-wide downturn that led to a persistent weakening of market demand, the company fully focused on stabilizing operations and accelerating sales; although the half-year performance fell short of expectations due to the macroeconomic environment,thecompanysuccessfullymaintaineditscorebusinessfoundation,achievingasalesvolumeof1.119millionunitsfrom January to June, of which overseas exports reached 455,000 units, representing a year-on-year increase of 51.9%, and new energy vehiclesalestotaled414,000units. The"Shangri-La"initiativeisadvancingsteadily,withAvatr,Deepal,andChanganNEVO,threedigitalintelligencenewenergy brands, successively launching multiple refreshed models to further enrich their product matrix and boost sales growth; the "Global Hybrid China Solution" Changan Blue Core Super Engine Hybrid made its global debut, featuring a deep electrification intelligent hybridsystemcomposedofa500-barultra-high-pressuredirect-injectionhybridengine,ahigh-fluxhigh-powerhybridelectricdrive, a high-performance high-safety battery, and anAI cloud intelligent control system that requires no charging, empowering traditional internal combustion engine vehicles with electric technology to innovate a "balanced oil-electric integration and intelligent fusion" breakthrough hybrid model,redefiningthe efficient hybrid mobility experience and providing globalusers with theoptimal mobility solution across all scenarios and throughout the entire lifecycle. The first prototype of the WE20TG-AA hybrid-specific engine, jointlydevelopedwithDonganPower,hasofficiallyrolledofftheproductionline;asapowerproduct targetingthehigh-endmarket, this engine incorporates advanced technologies such as ultra-high-pressure 500bar spray technology, ultra-high compression ratio, and deep Miller cycle, achieving performance metrics that lead the global mass-produced 2.0Lturbocharged direct-injection engine segment; meanwhile, theTaihang distributed electric drive technology has officially entered the mass production and popularization phase, and the "Golden Bell" battery has been awarded the Second Prize of the 2025 National Science and Technology Progress Award. The "Beidou Tianshu" initiative continues to accelerate; following the acquisition of China's first formal license plate for L3-level dedicated autonomous driving in December last year, it was approved this year for an L4-level self-developed Robotaxi
Page 10
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 9 testing license, becoming theonly vehicle manufacturer to possess full compliance and full-scenario L4-level unmanned driving test qualifications;itreleasedthe"NewSafety"achievementsofTianshuIntelligence,includingtheTireBlowoutStabilityfunction,with all new and facelifted models equipped with Tianshu Intelligence standardly featuring the Tire Blowout Stability function starting from May 1st; the Item "Key Technology Development for Intelligent Connected Vehicle Driving Operating Systems Oriented to Central Computing," led by the company, passed its final acceptance, establishing a complete innovation chain of "R&D-Verification-Application," breaking through multiple industry technical bottlenecks, and creating an overall solution for a drivingoperatingsystem withfullyindependentintellectual propertyrights.Chang'anTianshuIntelligentRobotics(Chongqing)Co., Ltd. has been officially established to reshape the mobility ecosystem through embodied intelligence, aiming to create landmark embodied intelligence innovative products and solutions and to become a world-class provider of robotics products and services. Changan's fully independently developed Tianshu large language model has obtained filing and approval from the Cyberspace Administration of China for "generative artificial intelligence services," possessing the compliance capabilities for independent training, independent operation, and providing services to the public, marking a critical step for Changan Automobile as the first vehicle enterprise in Chongqing to pass the national generative AI filing in the field of industrialization and implementation of autonomousandcontrollablelargemodels. The "Haina Bai Chuan" initiative has advanced to a higher dimension, with ChanganAutomobile's factory inAnápolis, Brazil, officially completed and commencing production; the first locally manufactured Changan UNI-T has successfully rolled off the assemblyline,andinthefuture,leveragingthedual-fuelandhybridpowertechnologyfoundation,thefactorywilllaunchafullrange ofhybridandelectrifiedmodels,furtherstrengtheningthelocalsupplychainandR&Dcapabilitieswhilesharinggreendevelopment solutions to jointly build a low-carbon and inclusive transportation ecosystem with all sectors of Brazilian society.Avatr has signed cooperation agreements with RSA Group, one of the leading automotive distribution giants in Northern Europe, and DeltaAuto Group, a leading automotive dealer in Eastern Europe, to leverage their extensive experience and mature channels to accelerate the expansion into high-value overseas markets; the 20,000th complete vehicle rolled offthe production lineat Changan's Rayong plant in Thailand, marking a new milestone in its localized industrial layout in Southeast Asia; the Polish market achieved a critical breakthrough from zero to a thousand orders, with the first batch of vehicles loaded and shipped in the first quarter. The all-new ChanganNEVOQ05hasbeenofficiallylaunchedinUzbekistanwithgreatfanfare. Against the backdrop of rapid iteration in the domestic new energy vehicle market, the continuous contraction of the internal combustion engine vehicle market, and intensifying competition in overseas markets, ChanganAutomobile has consistently adhered to product innovation and remained committed to building classic products, focusing on new energy vehicles and overseas incremental markets; in March, the company's monthly export volume exceeded 100,000 units for the first time, and its new energy vehicle sales for the first half of the year once again surpassed the 400,000-unit threshold; during the first half of the year, a dense launch of new energy vehicle models occurred, with theAvatr 06T, the all-new Deepal S07 Huawei Qianshun LiDAR Edition, and the Avatr 07L, among others, being successively launched, providing consumers with more high-quality green mobility options. Among them, theAvatr 06T is positioned as an "intelligent, aesthetic, all-scenario sports sedan," featuring the Taihang distributed electric drive system, Huawei QiankunADS 4 assisted driving system, and Huawei Qiankun 896-lineLiDAR as standard across the entirelineup,poweredbytheHarmonySpace5cockpittodeliverasmartermobilityexperience; theAvatr07Lboastscomprehensive increasesinbodylength,height,andwidth,easilymeetingmulti-scenarioneedssuchasfamilytravel,long-distanceself-driving,and cargo loading. Traditional powertrain products undergo iterative renewal, continuously demonstrating vitality; the fourth-generation CS75 PLUS Blue Whale Super Engine and the fourth-generation Eado Blue Whale Super Engine have officially launched, innovating a class-defining hybrid model that equally prioritizes fuel and electricity with intelligent integration, enabling users to enjoythereliabilityoffuel vehiclesandtheexperienceofelectricvehicleswithoutalteringtheirrefuelinghabits.Intermsofproduct market performance, in the first half of 2026, the retail sales of the all-new Changan NEVO Q05 ranked second among Chinese-brand compact SUVs (new energy vehicles), while the Changan NEVOA06 and Deepal L06 secured the second and third positions,respectively,intheChinese-brandmid-sizenewenergysedan market;thesecond-generationChangan X5PLUS andEado seriesrankedattheforefrontoftheChinese-brandcompacttraditionalpowertrainSUVandsedanmarkets.
Page 11
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 10 Strengthen global communication to continuously enhance brand momentum. Capitalizing on the global spotlight of theWorld Cup,weestablishedaglobalIPpartnershipwith thePortugueseNationalFootballTeam(FPF),becomingitsGlobal Official Partner; Changan Automobile, alongside Changan NEVO, shone on the CCTV Spring Festival Gala, with models such as the NEVOA06, Q05, and Q07 featured at the Harbin sub-venue of the Central Radio and Television Station's Spring Festival Gala; the Changan Brand Experience Center was selected for the inaugural "Travel with Brands" recommended list, standing as the sole national-level brand tourism experience site in Chongqing, enabling tens of thousands of visitors to comprehend Changan's brand narrative and experience the unique charm of "Made in China" and "Chinese Service" through their journey; centered on Changan's "Tianshu Intelligence,"global"Car RefiningSeason"eventswereconductedacrosssevencountriesandregions,includingSaudiArabia, Italy, Mexico, and Thailand; simultaneously, leveraging peak traffic periods like the 618 Shopping Festival, we executed targeted marketingcampaigns,utilizingtrendingtopicstocreateimmersiveatmosphericmarketing,andhaveconsecutivelyrankedamongthe top50ChineseGlobalizedBrandsintheKantarBrandZforthreeyears. II. Analysis of Core Competitiveness 1. AI-driven intelligent transformation capabilities.Thecompanyadherestothe"OneCore,TwoWings"AIstrategytobuild core AI competitiveness and foster new quality productive forces for technology enterprises. The company positions intelligent driving and intelligent cockpits as its "wingA," new quality productive forces driven byAI as its "wing B," and integratesAI base frameworks and toolchainswith computingpower and base platforms as a unified support system to advance technological iteration and efficiency upgrades in phased stages, actively promoting intelligent transformation. AI applications in office and business scenarios have achieved scaled implementation, with 11 transformation Item teams established to continuously advance intelligent operations, realizing AI-enabled functions such as 3C certificate verification, AI-driven smart channel site selection, AI-assisted intelligent software development, andAI-powered stress relief tape inspection. Launch the Star Intelligence Platform to cover core capabilities such as knowledge services and model development, achieving unified operation and monitoring of B-wing AI assets. The 18AI Master Items have cumulatively deployed 160 scenarios, with employees making over 3.11 million cumulative uses and AI autonomously executing more than 13 million tasks. Subsequently, the company will advance the launch of the Tianshu workbench and the full-scale deployment ofAI scenarios to support the entire online data workflow and accelerate the company's digitalandintelligenttransformation. 2. Strategic layout and high-efficiency execution capability. The company adheres to strategic guidance, advances its three major plans in depth, upholds the principle of "no efficiency, no Changan," continuously enhances total factor productivity, and drives the implementation of its strategy to deeper and more substantive levels. The company, in coordination with the Group, released the "1445" strategy of China Changan Automobile Group, providing strategic guidance on the company's vision, core businesses, key transformations, and operational objectives to ensure the continuous refinement of the company's strategic system. Establish the "1542" global management system, leveraging system construction as support and business transformation as the driving force to promote digital and intelligent empowerment, achieve efficiency improvements across all elements of people, finance, assets, and data, establish efficiency as a core competitive advantage, and efficiently advance the three major initiatives. In thenewenergysector,massproductionofthenext-generationelectricdriveandbatterymanagement systemswillreduceend-of-line charging time by 30%. Deepen cooperation with CATL, initiate the sodium-ion battery swapping technology Item, and jointly develop new battery systems. Conduct validation of 20Ah oxygen-polymer composite solid-state batteries, establish the Chenzhi Anqi retired battery crushing production line, and complete the strategic layout for the full battery lifecycle. Launching the global hybrid China solution, BlueWhale Super Engine, to propel light-duty family sedans into the"2-liter" fuel consumption era in urban areas. In terms of intelligence, the "Beidou Tianshu 2.0" initiative is advancing steadily to establish a central ring network SDA platform, extending security into a proactive, multi-dimensional "pan-security" encompassing driving, health, psychological well-being, and privacy. End-to-end intelligent driving achieves full-scenario coverage. Urban NOA(NavigationAssisted Driving), equipped with a fully self-developed distributedelectric drive system, achieves stabilitycontrol even duringa tireblowout at speeds
Page 12
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 11 upto225 km/h, therebyeliminatingsafety anxiety underextreme operatingconditions. GrantedanL4-level Robotaxi testinglicense toaccelerate thecommercializationofautonomousdrivinginshared mobility.The establishment oftheChang'anTianshuIntelligent Robotics Company further expands the boundaries of the future ecosystem. In terms of globalization, the "Inclusive Plan 2.0" was launched,expandingtheglobalsalesnetworkto129countriesandregions,withareserveof485localoverseassuppliers,acategory coverage rate of 43%, and a local demand satisfaction rate reaching 99%. Implement a "one zone, one policy" staffing model, strengthen the KD director team, and promote the localization of operations in quality and logistics. Refine the mechanisms for overseas incentives, performance evaluation, and job rotation, and improve the localized employment system. The global manufacturingsystemcontinuestoimprove,overseasproductioncapacityisexpandingrapidly,andmassproductionhascommenced for 17 KD Items across eight countries including Brazil. Global brand building has yielded substantial results, including the organization of global partner conferences and the launch event for the Changan NEVO Q05 in Thailand, alongside global communication campaigns leveraging the FIFA World Cup IP. "The "Three Major Plans" are being advanced efficiently, with an unwavering commitment to transforming into an intelligent and low-carbon mobility technology company and progressing toward becomingaworld-classautomotivebrand. 3. Cultural leadership capability. The company continuously deepens its historical and cultural genes and spiritual core of "seeking innovation through change, embracing openness and inclusivity, adhering to scientific rationality, and demonstrating unyielding resilience," while constantly strengthening the guiding role of its corporate culture. Establishing its foundation in the automotive sector from scratch in 1981; launching a second entrepreneurial phase in 2003, successfully expanding its independent passenger vehicle market and accelerating its global layout to achieve dual leaps in scale and technology; Launched its third entrepreneurial drive in 2017 to transform into a smart, low-carbon mobility technology company, successively unveiled the "Shangri-La," "Beidou Tianshu," and "Haina Baichuan" initiatives, established the Avatr, Deepal, and Changan NEVO intelligent digital new energy brands, and steadily advanced toward becoming a world-class automotive brand.At the same time, the company continues to build a globally leading cultural system characterized by "global integration and respect for differences," deeply integrating cultural concepts and core values into management standards, processes, performance evaluation, and other key areas to establish a replicable, adaptable, and sustainable global cultural operation mechanism; it constructs a management specification system encompassing "institutional processes, management principles, and leading culture," dynamically revises the leading cultural concepts in accordance with the principle of "annual review and triennial iteration," continuously inherits and promotes Changan Automobile'sleadingculture,andeffectivelytransformscultureintoacorecompetitiveadvantage. 4. Talent and organizational capability.Thecompanyadherestointernalsynergytosolidifyendogenousmomentum,achieves value co-creation through external ecosystem collaboration, systematically advances the global talent system construction, and stimulates organizational innovation vitality. The company's indirect controlling shareholder, China Changan, covers the entire automotive industry chain including the research and development, manufacturing, trading, logistics, and ecosystem of automobiles and parts, possessing strong capabilities in providing full-stack automotive professional solutions. Changan Automobile of China adheres to optimizing its industrial layout, collaboratively cultivating new business formats, models, and scenarios, and accelerating itstransitionfrom amanufacturing-orientedentitytoanintegrated manufacturingandserviceprovider.Deepenstrategic cooperation with core partners such as Huawei, CATL, Tencent, and Baidu to cross-industry build an integrated "Vehicle-Energy-Road-Cloud-Network-Satellite" large-scale industry and ecosystem. Focusing on the user's full lifecycle scenarios, we will engage in deep collaboration with leading domestic AI, ICT enterprises, and IoT ecosystem companies to achieve comprehensiveintegrationofthe"human-vehicle-home-office"digitalintelligenceecosystem,therebyassistingChanganAutomobile in integrating superior industrial resources and embedding itself into the broader ecosystem. Furthermore, the company continues to ensure robust human resource support, vigorously optimize its organizational structure, and invigorate the vitality of its talent workforce. Strengthen the selection, cultivation, utilization, and training of composite talents, continuously improve the training system for overseas expansion talents, persistently carry out international talent development, and simultaneously recruit mid-to-senior level professionals. Continuously implement the "New Horizon Plan" to facilitate the transformation of outstanding domestic core personnel into overseas roles across various sectors. Strengthen incentives and constraints, optimize the hierarchical
Page 13
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 12 incentive assessment mechanism, and cover multiple indicators including sales volume, revenue, profit, and expenses. Formulate an incentive scheme for achieving special performance targets in overseas markets for 2026, adhering to the principle of balancing volume and profitability to advance the overseas doubling plan. Optimize the systems and frameworks related to compensation managementandyear-endincentives. 5. Technological R&D capabilities. The company adheres to R&D innovation, steadily advancing core technologies and product Itemswhileachievingbreakthroughsinkey coretechnologiesacrossmultiplefronts.Regardingthevehicleandplatform,13 cross-domain new functions including predictive anti-skid, rear-end collision injury reduction, and active wheel lifting have been completed, while 5 safety-inclusive functions such as blowout stability control and slippery road assistance are being advanced for implementation.Inthenewenergysector,anewlydevelopedsecond-generationfuelcellsystemachievesavolumetricpowerdensity of ≥650 W/L and an efficiency of ≥60%, enabling high-power, high-efficiency, and high-reliability operation across all scenarios while reducing costs by 70% to achieve price parity between hydrogen and electricity. Successfully overcame key technical challenges in novel electrolytes, lithiummetal anodes, and interface regulation, achieving anovel electrolyte conductivityexceeding 4.5 mS/cm, a solid-state battery energy density surpassing 350 Wh/kg, and thermal stability up to 250°C. Sodium-ion batteries achieve a breakthrough in single-point technology for high-power electrodes, enhancing driving range experience under extreme temperature conditions. In terms of intelligence, the offline mode for mobile phone-based vehicle control without network or cloud connectivity has been launched and implemented as a first-in-vehicle feature, enabling core driving operations such as unlocking, locking, and starting the vehicle even in network-free environments. Complete the development of the central-plus-regional hierarchical architecture andachieve mass productiondeployment. Successfullycompleted thedevelopment and application ofthree newsafetyredundancystrategies,therebyenhancingvehiclearchitecture-level safety.Theself-developedend-to-endlargemodelfor urban pilot-assisted driving will be exclusively launched on newvehicle models, while the parking assistance functionality achieves industry-leading standards. The self-developed L4 Robotaxi system solution has been awarded the first L4 testing license for road tests with passengers in Chongqing. In the realm of forward-looking technologies, we have completed the development of over ten technical prototypes, including satellite communication and geographic information compliance platforms; achieved breakthroughs in battery sequence large models and multimodal emotion recognition; independently mastered core technologies such as scene generation models, formal verification toolchains, and closed-loop data systems for dynamic bottom data; and jointly led the publicationofoneITUinternationalstandard.Intermsofscientificandtechnologicalachievementawards,thecompanyhasreceived one Second Prize of the National Science and Technology Progress Award, eleven Chongqing Science and Technology Awards, including one First Prize in Science andTechnology Progress as the lead entity, one First Prize in Science and Technology Progress and one First Prize in Technical Invention as a participating entity, and has also been honored with the Enterprise Technological InnovationAward,therebydemonstratingthecompany's strengthin scientificand technological innovation.As ofJune30, 2026,the Companyholds14,092validpatents,including6,186inventionpatents. III. Analysis of Main Business Overview Whetheritisconsistentwiththedisclosureofthecompany'sprincipalbusinessactivitiesduringthereportingperiod. √Yes□No Pleaserefertotherelevantcontentunder"I.ThemainbusinessoftheCompanyinthereportingperiod". Year-on-year changes in key financial data Unit:RMB Thisreportingperiod Thesameperiodlastyear Year-on-yearchange OperatingRevenue 65,634,329,742.16 72,691,310,387.08 -9.71% Operatingcost 56,117,100,062.15 62,093,645,283.41 -9.63%
Page 14
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 13 TaxesandSurcharges 1,066,853,006.30 1,668,033,001.81 -36.04% Salesexpense 3,860,975,148.50 4,361,492,467.23 -11.48% Administrativeexpenses 1,633,507,400.67 2,228,013,321.96 -26.68% R&Dinput 3,154,733,904.46 3,283,657,283.48 -3.93% Financialexpense 69,130,695.55 -1,956,937,280.34 103.53% Incometaxexpense 78,188,897.89 376,316,886.76 -79.22% Net profit attributable to shareholders oflistedcompany 817,395,511.85 2,291,211,254.67 -64.32% Netcashflowfromoperatingactivities -11,413,452,268.37 -8,607,196,790.27 -32.60% Netcashflowfrominvestingactivities -2,140,256,831.05 -3,026,061,124.97 29.27% Netcashflowsfromfinancingactivities -932,105,555.82 257,144,644.23 -462.48% Netincreaseincashandcash equivalents -14,514,301,556.92 -11,088,386,537.51 -30.90% Duringthereportingperiod,thechangein"TaxesandSurcharges"wasprimarilydrivenbyadeclineinvehiclesales;thechange in "FinancialExpenses" was mainly duetoexchange lossesanda reductionininterest income; thechangein "IncomeTaxExpense" wasprimarilyattributabletoadecreaseinthetotalprofitofsubsidiaries;thechangein"NetProfitAttributabletoShareholdersofthe Listed Company" was mainly caused by a decline in sales volume and a reduction in exchange gains (excluding the impact of exchange gains, net profit attributable to shareholders of the listed company increased by 12% year-on-year); the change in "Net Cash Flow from OperatingActivities" was primarily due to a decrease in cash collections from maturing sales; the change in "Net Cash Flowfrom FinancingActivities" was mainlyinfluenced bysharerepurchaseexpendituresinthecurrentperiod; andthechange in "Net Increase in Cash and Cash Equivalents" was primarily due to the reduction in net cash flow from operating activities in the currentperiod. Major changes on profit composition or profit resources in reporting period □Applicable√NotApplicable Therehavebeennosignificantchangesinthecompositionorsourcesofthecompany'sprofitsduringthereportingperiod. Composition of Operating Revenue Unit:RMB Thisreportingperiod Thesameperiodlastyear Year-on-yearchange Amount Proportionof operatingrevenue Amount Proportionof operatingrevenue TotalOperating Revenue 65,634,329,742.16 100% 72,691,310,387.08 100% -9.71% Byindustry Automobile 65,634,329,742.16 100.00% 72,691,310,387.08 100.00% -9.71% Byproduct Vehicles 62,500,075,307.28 95.22% 69,509,129,359.35 95.62% -10.08% Servicesandothers 3,134,254,434.88 4.78% 3,182,181,027.73 4.38% -1.51% Byregion China 43,691,870,564.87 66.57% 60,417,330,487.94 83.11% -27.68% Overseas 21,942,459,177.29 33.43% 12,273,979,899.14 16.89% 78.77%
Page 15
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 14 Information on industries, products, or regions accounting for more than 10% of the company's operating revenue or operating profit. √Applicable□NotApplicable Unit:RMB OperatingRevenue OperatingCost Grossprofit margin Changein operating revenue comparedtothe sameperiodof thepreviousyear Changeincost ofsales comparedtothe sameperiodof thepreviousyear Changeingross profitmargin comparedtothe sameperiodof theprevious year. Byindustry Automotive manufacturing industry 65,634,329,742.16 56,117,100,062.15 14.50% -9.71% -9.63% -0.08% Byproduct Sellinggoods 62,500,075,307.28 53,380,425,906.76 14.59% -10.08% -10.17% 0.09% Byregion China 43,691,870,564.87 38,592,553,616.53 11.67% -27.68% -26.56% -1.36% Overseas 21,942,459,177.29 17,524,546,445.62 20.13% 78.77% 83.59% -2.10% Statisticalscopeofthecompany'scorebusinessoperations.Intheeventofadjustmentsoccurringduringthereportingperiod,the adjustedmainbusinessdataforthemostrecentreportingperiodbasedonthereportingperiod-endbasis. □Applicable√NotApplicable IV. Analysis of Non-Core Business √Applicable□NotApplicable Unit:RMB Amount Proportionoftotal profit Explanationofthecauses Whetheritissustainableor not Otherincome 668,609,055.54 258.25% Pleasereferto"Item(55) OtherIncome"inNoteVIIof thefinancialreport. No. Investmentreturns 188,984,988.77 72.99% Please refer to "Note (56) Investment Income" in Note VIIofthefinancialreport. Except for the gain of 161 million RMB arising from the non-common control business combination with Jiangling Holdings, the remainderissustainable. Assetimpairment -463,135,760.68 -178.88% Pleasereferto"Note(59) ImpairmentLossonAssets" inNoteVIIoftheFinancial Report. No. Gain on disposal of assets 75,172,176.38 29.03% No. Non-operating 45,557,329.01 17.60% No.
Page 16
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 15 income Non-operating expenses 35,733,896.93 13.80% No. V. Analysis of Asset and Liability Status 1. Major Changes in Asset Composition Unit:RMB Attheendofthereportingperiod. Attheendoflastyear. Increaseor decreasein specific gravity Amount Proportionof totalassets Amount Proportionof totalassets Cash and cash equivalents 39,651,834,716.85 21.13% 54,021,735,265.29 26.62% -5.49% Accounts Receivable 7,500,132,576.25 4.00% 4,196,844,647.15 2.07% 1.93% Contractassets 158,686,119.07 0.08% 155,271,537.07 0.08% 0.00% Inventory 23,115,384,353.37 12.32% 22,518,286,370.64 11.09% 1.23% Investment property 5,629,224.58 0.00% 5,742,580.36 0.00% 0.00% Long-term equity investment 20,549,846,834.08 10.95% 20,426,682,382.90 10.06% 0.89% Fixedassets 22,310,782,207.86 11.89% 22,048,786,066.87 10.86% 1.03% Construction in progress 1,214,566,887.41 0.65% 1,028,734,574.34 0.51% 0.14% Right-of-use asset 345,883,003.44 0.18% 396,605,258.85 0.20% -0.02% Short-term borrowings 43,728,914.90 0.02% 512,275,913.93 0.25% -0.23% Contract liabilities 8,418,775,954.69 4.49% 6,908,609,058.22 3.40% 1.09% Long-term borrowings 41,502,388.14 0.02% - 0.00% 0.02% Leaseliabilities 219,290,767.20 0.12% 299,147,228.72 0.15% -0.03% Attheendofthereportingperiod,thechangein"AccountsReceivable"wasprimarilydrivenbyintensifiedmarketcompetitionand theincreasedsupportprovidedtodistributors. 2. Major Overseas Assets □Applicable√NotApplicable 3. Assets and liabilities measured at fair value √Applicable□NotApplicable
Page 17
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 16 Unit:RMB Item Opening balance Profitorloss fromchanges infairvalue forthecurrent period Cumulat ivefair value changes recogniz edin equity Impairme ntaccrued forthe current period. Purchase amountfor thisperiod Salesamount forthisperiod Other chang es Ending balance Financialassets 1.Financialassets heldfortrading (excludingderivative financialassets) 18,219,493.88 79,969,967.24 98,189,461.12 2.Derivativefinancial assets 31,339,394.10 1,202,297.63 30,137,096.47 3.Otherequity instrument investments 692,201,858.72 692,201,858.72 Subtotaloffinancial assets 692,201,858.72 49,558,887.98 79,969,967.24 1,202,297.63 820,528,416.31 Thetotaloftheabove items. 692,201,858.72 49,558,887.98 79,969,967.24 1,202,297.63 820,528,416.31 Financialliabilities -9,148,442.85 -9,148,442.85 Note:Thedetailsoffinancialassets heldfortradingandotherequityinstrument investmentsareprovidedseparately inNoteVII(II) "FinancialAssetsHeldforTrading"andNoteVII(XIII)"OtherEquityInstrumentInvestments"ofthefinancialreport. WhethertherewereanysignificantchangesinthemeasurementattributesoftheCompany'smajorassetsduringthereportingperiod. □Yes√No 4. Status of restricted asset rights as of the end of the reporting period Unit:RMB Item Endingbookvalue Reasonforrestriction Cashandcashequivalents 1,172,965,121.02 Marginandotherrelateditems. NotesReceivable 4,817,604,907.45 Pledgeofbillsofexchange Total 5,990,570,028.47 VI. Analysis of Investment 1. Overall situation √Applicable□NotApplicable Investmentamountforthereportingperiod (inRMB) Investmentamountforthesameperiodof thepreviousyear(inRMB) Fluctuationmagnitude 4,456,106,772.33 4,756,478,732.84 -6.32%
Page 18
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 17 2. Major equity investment activities acquired during the reporting period. □Applicable√NotApplicable 3. Major non-equity investments in progress during the reporting period. □Applicable√NotApplicable 4. Investment in financial assets (1) Securities Investment Status √Applicable□NotApplicable Unit:RMB Securities instrument s Securiti esCode Securit ies Abbrev iation Initial investment cost Accou nting measur ement model Openin gbook value Profitorloss fromchanges infairvalue forthecurrent period. Cumulative fair value changes recognized in equity Purchase amountforthis period Sales amount forthis period Profitorloss forthe reporting period Endingbook value Accou nting subject s Source offunds Domestic and overseas stocks 603293 Atek 79,969,967.24 Fair value measur ement 0 18,219,493.88 0.00 79,969,967.24 0.00 18,219,493.88 98,189,461.12 Tradin g financi al assets Own funds Total 79,969,967.24 -- 0 18,219,493.88 0.00 79,969,967.24 0.00 18,219,493.88 98,189,461.12 -- -- (2) Derivative Investment Status √Applicable□NotApplicable 1) Derivative investments held for hedging purposes during the reporting period. √Applicable□NotApplicable Duringthereportingperiod,theCompanydidnotengageinderivativeinvestmentsforhedgingpurposes. Unit:10,000RMB Derivative investment types Initial investment amount Opening balance Profitor lossfrom changesin fairvalue forthe current period Cumulativ efairvalue changes recognized inequity Purchase amount duringthe reporting period Sales amount duringthe reporting period Closing balance The proportion ofthe terminal investment amountto thenet assetsat theendof the reporting
Page 19
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 18 period. Forward foreign exchange- USD - - 10 -68 40,827 23,839 16,988 0.22% Forward Foreign Exchange- RussianRuble - - 2,209 2,264 67,775 13,339 54,436 0.72% Total - - 2,219 2,196 108,602 37,178 71,424 0.94% Explanationof theaccounting policiesand specific principlesfor accounting treatmentof hedging businessduring thereporting period,and whetherthere wereany material changes comparedto theprevious reporting period. No. Explanationof theactualprofit andloss situationduring thereporting period. Sales during the reporting period amounted to 371.78 million RMB, with an actual trading loss of 230,000 RMB. Explanationof Hedging Effectiveness Changan Automobile adheres to the principle of risk neutrality in its forward foreign exchange buying and selling business, basing its operations on normal production and management activities; by utilizing foreign exchange forward transactions to lock in revenues and costs, the company mitigates exchange rate fluctuation risks,reducestheuncertaintyofoperatingprofits. Sourcesof Fundingfor Derivative Investments Ownfunds Explanationof riskanalysis andcontrol measures regarding derivative positionsheld duringthe reporting period (includingbut notlimitedto marketrisk, (I) Risk analysis 1.Market Risk: Inscenarioswhereexchangeratesfluctuatesignificantly, thediscrepancybetween theforward exchangerateandtheactualspotrateatmaturitymayresultinforeignexchangelossesforthecompany. 2. Liquidity risk: Due to inaccurate forecasting, a discrepancy arose between the settlement date stipulated in theforward foreignexchangecontractandtheactualsettlementdate,resultingininsufficientavailablefundsat thetimeofsettlement,therebytriggeringliquidityriskandcausingthefailuretosettleonschedule. 3. Operational Risk: Risks may arise due to inadequate internal control mechanisms and unprofessional personnel. 4. Bank default risk: In the case of forward foreign exchange transactions, if thebank fails during the contract period, the company may be unable to execute the foreign exchange contract at the agreed price, thereby exposingitselftotheriskthattheriskexposurecannotbeeffectivelyhedged. (II) Risk Control Measures 1. The Company and its subsidiaries will monitor fluctuations in the foreign exchange market, strengthen research on exchange rates, forecast future exchange rate trends, enhance their ability to assess exchange rate movements,andmitigatetheimpactofexchangeratevolatilityontheCompany. 2. To prevent failure in the timely settlement of forward foreign exchange transactions, the company and its
Page 20
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 19 liquidityrisk, creditrisk, operational risk,legalrisk, etc.) subsidiaries'businessmanagement departmentswill monitorpaymentandcollectionprogress toavoidoverdue situationsandminimizeriskstothelowestpossibleextent. 3.TheCompanyanditssubsidiarieshaveestablishedanFXresearchteamandanFXtradingriskcontrolteam, and have set up a forward FX trading working mechanism covering FX research, trading risk control, and scheme approval. The foreign exchange trading function shall be structured with a clear separation of front, middle,andbackofficerolesandpersonnel,accompaniedbyaregularrotationmechanism. 4. The company has formulated the "Interim Measures for the Administration of Forward Foreign Exchange Trading Business," which clearly stipulates management principles, management systems, operational procedures, and risk control measures, and requires strict adherence to these institutional requirements during operations. 5. The counterparties for the company and its subsidiaries' forward foreign exchange trading business are selected from financial institutions with legal qualifications, good credit standing, and established long-term businessrelationshipswiththecompany,therebypresentingalowdefaultrisk. Thechangesin marketprices orfairvaluesof derivative productsduring thereporting periodof investments, andtheanalysis ofthefairvalue ofderivatives shalldisclose thespecific methodsused aswellasthe settingsof relevant assumptions andparameters. The Company recognizes and measures financial instruments in accordance with the "Measurement of Financial Instruments" Chapter of Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments, with fair value measurementsand recognition primarily based onbank pricing. During the reporting period, the gain or loss from changes in the fair value of foreign exchange forwardcontractsamountedto22.19millionRMB. Litigation status(if applicable) None Disclosuredate oftheboard resolution approving derivative investments(if applicable) March3,2026 Disclosuredate ofthe shareholders' meeting announcement regardingthe approvalof derivative investments(if applicable) None 2) Derivative investments held for speculative purposes during the reporting period. □Applicable√NotApplicable
Page 21
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 20 TheCompanyhadnoderivativeinvestmentsforspeculativepurposesduringthereportingperiod. 5. Use of Raised Funds □Applicable√NotApplicable Duringthereportingperiod,theCompanyhadnoutilizationofraisedfunds. VII. Sale of significant Assets and Equity 1. Sale of significant assets □Applicable √Notapplicable 2. Sale of significant equity □Applicable √Notapplicable VIII. Analysis of Major Holding and Joint Stock Companies √Applicable□NotApplicable Statusofmajorsubsidiariesandassociatedcompanieswhoseimpactonnetprofitexceeds10% Unit:10,000RMB CompanyName Company Type Corebusiness Registered Capital Total Assets NetAssets Operating Revenue Operating profit Netprofit HefeiChanganAutomobileCo.,Ltd. subsidiary Manufacturingandsales ofautomobilesandauto parts. 227,500 725,705 285,530 645,537 -8,406 -8,529 ChongqingChanganAutomobileCustomer ServiceCo.,Ltd. subsidiary Businessoperations relatedtoautomotive spareparts. 3,000 173,780 33,274 262,331 70,310 59,781 ChongqingChanganAutomobile InternationalSales&ServiceCo.,Ltd. subsidiary Exportandserviceof automobiles,parts,and technologies. 142,276 1,532,317 276,881 431,562 16,282 13,664 ChongqingChanganTechnologyCo.,Ltd. subsidiary Businessactivitiesrelated toautomotiveresearch anddevelopment. 9,000 163,013 136,877 59,178 -16,694 -16,752 ChongqingXingzhiTechnologyCo.,Ltd. subsidiary Exportandserviceof automobiles,parts,and technologies. 4,900 1,466,456 89,609 1,090,501 20,036 16,460 NanchangJianglingInvestmentCo.,Ltd. Equity investment company Investmentmanagement, industrialinvestment,and assetmanagement. 100,000 3,233,892 1,231,737 1,936,187 83,513 74,252 ChanganFordAutomobileCo.,Ltd. Equity investment company Manufacturingandsales ofautomobilesandtheir components. USD 24,100 2,017,292 288,886 1,362,672 10,896 26,203 ChanganAutomobileFinanceCo.,Ltd. Equity investment company Automotive finance-relatedbusiness 476,843 4,759,063 1,191,081 163,485 42,476 38,796 Statusofacquisitionsanddisposalsofsubsidiariesduringthereportingperiod √Applicable□NotApplicable
Page 22
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 21 CompanyName Methodsofacquisitionanddisposalof subsidiariesduringthereportingperiod. Theimpactonoverallproduction, operations,andfinancialperformance. JianglingHoldingsCo.,Ltd. Businesscombinationsnotunder commoncontrol Nosignificantimpact. DescriptionofMajorHoldingandParticipatingCompanies Duringthereportingperiod,ChongqingXingzhiTechnologyCo.,Ltd.andChongqingChanganInternationalAutoSalesService Co., Ltd. were responsible for export operations; impacted by intense market competition, they increased resource investment, resultingin ayear-over-yeardeclineinoverall profits. Hefei ChanganAutomobileCo.,Ltd. andChanganFordAutomobileCo.,Ltd. primarily experienced a year-on-year decline in profits due to a drop in sales volume, while ChanganAutomobile Finance Co., Ltd. sawayear-on-yeardecreaseininterestincomemainlyattributabletoareductionintheaverageloanscale. IX. Structure of Structured Entities Controlled by the Company □Applicable√NotApplicable X. Possible risks and corresponding measures Currently,theautomotiveindustryfacesdualchallengesofpressureinthedomesticmarketandacomplex,volatileinternational situation. The domestic automotive market has entered a stabilization phase characterized by fluctuating demand and intensifying competition.Although export markets have maintained high growth, intensified geopolitical competition among major powers, the resurgence of protectionism, and frequent regional geopolitical conflicts have introduced significant uncertainties for enterprises in trade,investment,procurement,andlogistics. 1. Market risk Regarding the domestic market, with the phase-out of previous subsidy policies and intensifying consumer wait-and-see sentiment, thegrowth rateofdomestic demandhassignificantly slowed; theindustryhasentereda stage ofstock-game competition, with profit marginsfallingto historical lows. Regarding overseasmarkets, exportscontinue togrowrapidly,servingas akey growth engine for the automotive industry, yet they face numerous potential risks: certain countries are researching and enacting tariffs and restrictive regulations, thereby continuously raising institutional compliance thresholds, while market access in some regional marketsisbecomingincreasinglydifficult. Response Strategy: In the face of intensifying market competition, the company adheres to the business principles of value orientation and a balance between volume and profitability, proactively avoids vicious price competition, and focuses on building differentiated competitiveness through product and service excellence.Adhere to long-termism, pursue brand elevation, and remain steadfast in high-end upgrading, technological innovation, ecosystem integration, and global development. On the product side, we will steadfastly advance theflagship product strategy and lean management by integrating the supply chain, ecosystem, and product platform to comprehensively enhance product competitiveness across the entire value chain; on the service side, centered on customer value, we will construct an integrated "product-plus-service" value-added ecosystem, establish a manufacturer-collaborative smart butler operation system, reshape customer service processes, and improve systematic problem-solvingcapabilities.Regardingoverseasmarkets,wewillaccelerate thetransitionfrom"productexport"to"systemexport" by establishing local manufacturing facilities, assembling KD kits, and engaging in cross-border technical cooperation to deeply integrateintotheglobalmarketandbuildaresilientglobaloperationalsystem. 2. Risks associated with material procurement and cost control On the one hand, geopolitical conflicts and localized wars have, to a certain extent, driven up prices of bulk commodities and resourceproducts,andmayobstructkeymaritimeshippingroutes,therebyincreasingtransportationcosts.Ontheotherhand,against
Page 23
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 22 the backdrop of great power competition, the proliferation of technological blockades, export controls, and investment reviews has disrupted the stability of global trade and supply chains, potentially causing price volatility and supply shortages of critical componentssuchasautomotivechips,therebyfurthersqueezingautomakers'profitmarginsandintensifyingoperationalpressures. Mitigation Strategy: The company is continuously building a diversified logistics and supply chain resilience system. To mitigate risks associated with blocked sea lanes and rising costs, implement multimodal transport solutions combining sea and land freight, open alternative routes, bypass conflict zones, and ensure uninterrupted logistics flow. In terms of ensuring the supply of criticalmaterials,priorityisgiventostrengtheningtheautonomyofcoretechnologiesanddiversifyingsupplychannels.Ononehand, increase investment in underlying technology research and development to accelerate the independent innovation and industrial synergy of key core components; on theother hand, expedite the construction ofa globalized and diversified matrix of raw material and component suppliers to avoid excessive reliance on any single region or supplier, thereby mitigating the risk of supply disruptions. XI. Implementation of Market Value Management System and Valuation Improvement Plan Whetherthecompanyhasestablishedthemarketvaluemanagementsystem. √Yes □No Whetherthecompanyhasdisclosedthevaluationimprovementplan. □Yes √No OnApril9,2025,the40thmeetingofthe9thBoardofDirectorsoftheCompanydeliberatedandapprovedtheproposalentitled "On Formulating the Market Value Management System." To strengthen the company's market value management, further standardize its market value management practices, and effectively enhance the company's investment value and ability to return value to shareholders, in accordance with relevant provisions of the "Company Law of the People's Republic of China," "Securities LawofthePeople'sRepublicofChina,""SeveralOpinionsoftheStateCouncilonStrengtheningSupervision,PreventingRisks,and PromotingHigh-Quality Development oftheCapital Market," "Several OpinionsonImprovingand StrengtheningtheMarket Value ManagementofCentralEnterpriseHoldingListedCompanies,""RegulatoryGuidelineNo.10forListed Companies—Market Value Management," and other laws, regulations, normative documents, as well as the "Articles of Association," the Company has formulatedthe"ChongqingChanganAutomobileCo.,Ltd.MarketValueManagementSystem." XII. Implementation of the “Parallel Improvement of Quality and Return” Initiative Whetherthecompanyhasdisclosedtheannouncementoftheactionplanof“ParallelImprovementofQualityandReturn”. √Yes□No To implement the guiding principleof"vitalizing thecapital market andboosting investorconfidence" proposed at the meeting of the Political Bureau of the CPC Central Committee, to better fulfill the "three roles" of central enterprises in technological innovation, industrial control, and security support, to safeguard the interests of all shareholders, enhance investor confidence, and promote the company's long-term, healthy, and sustainable development, the company has formulated a "Dual Improvement in Quality and Returns" action plan, with specific measures including firmly adhering to strategic guidance to accelerate the transformation into an intelligent low-carbon mobility technology company, improving the standards of corporate governance and operational compliance, strengtheninginformationdisclosure toenhancecorporatetransparency, and prioritizing shareholderreturns to increase investor satisfaction. For specific details, please refer to the Company's Announcement on the "Quality and Return Dual Improvement" Action Plan, disclosed on the CNINFO website (www.cninfo.com.cn) on March 7, 2024 (Announcement No. 2024-13). Furthermore, the company disclosed the "Progress Announcement on the 'Quality and Return Dual Improvement' Action Plan"(AnnouncementNo.2024-26)onApril18,2024.
Page 24
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 23 Based onfirm confidenceinthecompany'sstrategic development prospectsandintrinsicvalue, andtoeffectively safeguard the legitimate rightsandinterestsofall shareholders, theCompanyconvened its54thmeetingofthe9thBoardofDirectorsonFebruary 28, 2026, and its 2nd Extraordinary General Meeting of Shareholders for 2026 on March 19, 2026, to approve the "Proposal on the Share Repurchase Plan via Centralized Bidding Trading," thereby authorizing the Company to use its own funds to repurchase its ordinary shares (Class A shares) and domestic listed foreign shares (Class B shares) via centralized bidding for the purpose of reducing registered capital. As of July 31, 2026, the Company has repurchased 176,272,521 shares of its own stock through its dedicated securitiesaccount for share repurchases via centralized biddingtransactions, representing1.78%oftheCompany's current totalsharecapital. The company actively carries out investor relations management in strict adherence to the principles of openness, fairness, and impartiality, and strives to maintain a positive relationship between the company and its investors by establishing a multi-level mechanism for constructive interaction. First, we will enhance investors' understanding and recognition of the company's key strategic areas, including newenergy, intelligence, and globalization,through diverse onlineand offlineinteractionchannels suchas on-site receptions, site visits, research surveys, telephone conferences, and the "Interactive Easy" platform of the Shenzhen Stock Exchange. Secondly, by integrating with the company's major brand activities, we organize investors to participate in thematic exchanges and exclusive test drive experiences, thereby helping them understand the company's long-term investment value. Third, we will hold regular performance briefing sessions; the company will convene the "2026 Semi-Annual Performance Briefing" via remoteonlineplatformonMonday,August31,2026,from15:00to16:00,andwarmlyinvitesallinvestorstoactivelyparticipate.
Page 25
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 24 Chapter 4 Corporate Governance, Environmental, and Social Responsibility I. Changes in the Company's Directors and Senior Management Personnel √Applicable□NotApplicable FullName Positionheld Type Date Reason NiErke ChiefAccountantand SecretaryoftheBoardof Directors Appointment February12,2026 Duetoworkneeds ZhangDeyong Director Leaveoffice February28,2026 Duetoworkneeds ZhangDeyong ChiefAccountantand SecretaryoftheBoardof Directors Dismissal February28,2026 Duetoworkneeds NiErke Director Elected March19,2026 Duetoworkneeds ChenZhuo VicePresident Appointment June15,2026 Duetoworkneeds DiZhirui VicePresident Appointment June15,2026 Duetoworkneeds PengTao ExecutiveVicePresident Leaveoffice July30,2026 Duetoworkneeds II. Preplan for Company common stock profit distribution and capital reserves converting into share capital in the reporting period □Applicable√NotApplicable Thecompanyplanstodistributenocashdividends,issuenobonusshares,andmakenocapitalizationofreservesintosharecapital forthehalf-yearperiod. III. Implementation status of the company's equity incentive plan, employee stock ownership plan, or other employee incentive measures. √Applicable□NotApplicable 1. Equity incentive plan OnJuly13,2020,theCompany's8thBoardofDirectors2ndMeetingandthe8thBoardofSupervisors2ndMeetingdeliberated and approved resolutions including "Proposal on Reviewing the <Draft of the Company'sA-Share Restricted Stock Incentive Plan> and its Summary" and "Proposal on Reviewing the <Implementation and Assessment Management Measures for the Company's A-Share Restricted Stock Incentive Plan>." The company's independent directors issued a favorable independent opinion on the incentiveplan.
Page 26
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 25 On February 1, 2021, the Company's 8th Board of Directors 11th Meeting and the 8th Supervisory Board 7th Meeting deliberatedandapprovedresolutionsincludingthe"ProposalonDeliberatingthe<CompanyA-ShareRestrictedStockIncentivePlan (Revised Draft)> and its Summary" and the "Proposal on Deliberating the <Company A-Share Restricted Stock Incentive Plan Implementation Assessment Management Measures (Revised Draft)>." The company's independent directors issued a favorable independentopinionontherevisionoftheincentiveplan. On February 18, 2021, the Company convened its first extraordinary general meeting of shareholders for 2021, at which the following resolutions were adopted: "Proposal on Reviewing the <Draft (Revised) Plan for Restricted Stock Incentive of the Company'sA-Share> and its Summary," "Proposal on Reviewing the <Implementation andAssessment Management Measures for the Company's A-Share Restricted Stock Incentive Plan (Revised Draft)>" and "Proposal to Request the Shareholders' General MeetingtoAuthorizetheBoardofDirectorstoHandleAllMattersRelatedtotheEquityIncentivePlaninFull." On February 22, 2021, the Company convened the 12th meeting of the 8th Board of Directors and the 8th meeting of the 8th Board of Supervisors, at which resolutions were adopted regarding the proposal to adjust the list of initial grant recipients and the number of restricted shares under theA-share restricted share incentive plan, as well as the proposal to grant restricted shares to the initial grant recipients of the A-share restricted share incentive plan, among other proposals. The company's independent directors issuedtheirindependentopinionsexpressingconcurrence. On March 3, 2021, the Company disclosed the Announcement on the Completion of Registration for the Initial Grant of the A-Share Restricted Stock Incentive Plan.Atotal of 1,247 actual recipients were granted 76.1954 million restricted shares, with the listingdateoftherestrictedsharessetforMarch5,2021. On August 30, 2021, the Company convened the 25th meeting of the 8th Board of Directors and the 12th meeting of the 8th Board of Supervisors, at which the resolutions on the "Proposal to Adjust the Repurchase Price of the A-Share Restricted Stock Incentive Plan" and the "Proposal to Repurchase and Cancel the Restricted Stocks Granted to Certain Incentive Objects but NotYet Released from Lock-up" were deliberated and approved. The company's independent directors issued their independent opinions expressingconcurrence. OnSeptember17,2021,theCompanyconveneditssecondextraordinarygeneralmeetingofshareholdersfor2021,atwhichthe proposal regarding the repurchase and cancellation of restricted shares granted to certain incentive recipients but not yet released fromlock-upwasdeliberatedandapproved. On November19, 2021,theCompanyconvened the29thmeetingofthe8thBoardofDirectorsandthe15thmeeting ofthe8th Board of Supervisors, at which the resolutions on the "Proposal to Adjust the Number of Reserved Restricted Shares under the A-Share Restricted Share Incentive Plan" and the "Proposal to Grant Reserved Restricted Shares to the Incentive Objects under the A-Share Restricted Share Incentive Plan" were deliberated and approved. The company's independent directors issued their independentopinionsexpressingconcurrence. On December 21, 2021, the Company completed the repurchase and cancellation of all restricted shares totaling 1.036 million sharesthathadbeengrantedtocertainoriginalincentiverecipientsbuthadnotyetmettheunlockingconditions. On December 30, 2021, the Company disclosed theAnnouncement on the Completion of the Grant of the Reserved Portion of the A-Share Restricted Stock Incentive Plan. A total of 356 actual recipients were granted awards, with 17.7612 million restricted sharesallocatedtothereservedportion,whichcommencedtradingonDecember31,2021. On August 2, 2022, the Company convened the 43rd meeting of the 8th Board of Directors and the 18th meeting of the 8th BoardofSupervisors,atwhichtheproposaltitled"RegardingtheAdjustmentoftheRepurchasePriceforRestrictedSharesunderthe A-Share Restricted Share Incentive Plan and the Repurchase and Cancellation of Certain Restricted Shares" was deliberated and approved.Thecompany'sindependentdirectorsissuedtheirindependentopinionsexpressingconcurrence. OnAugust 18, 2022, the Company convened its 2022Third Extraordinary General MeetingofShareholders, which deliberated andapprovedtheproposaltitled"RegardingtheAdjustmentoftheRepurchasePriceforA-ShareRestrictedStockIncentivePlanand theRepurchaseandCancellationofCertainRestrictedStocks."
Page 27
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 26 On February 17, 2023, the Company convened the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th Board of Supervisors, at which the proposal regarding the achievement of unlocking conditions for the first unlocking period of the initialgrantportionoftheA-sharerestrictedstockincentiveplanwasdeliberatedandapproved.Thecompany'sindependentdirectors issuedtheirindependentopinionsexpressingconcurrence. On March 3, 2023, the Company disclosed the "Notice on the Listing and Circulation of Restricted Shares in the First Unlocking Period of the Initial Grant of the A-Share Restricted Stock Incentive Plan," with the listing and circulation date of the unlockedsharessetforMarch6,2023. On June 20, 2023, the Company completed the repurchase and cancellation ofa total of 2.476422 million restricted shares that hadbeengrantedtocertainoriginalincentiverecipientsbuthadnotyetmettheunlockingconditions. OnJuly27,2023,theCompanyconvenedthefirstmeetingsoftheNinthBoardofDirectorsandtheNinthBoardofSupervisors, at which the proposal entitled "Regarding the Revision of the Company'sA-Share Restricted Stock Incentive Plan" was deliberated andapproved.Thecompany'sindependentdirectorsissuedtheirindependentopinionsexpressingconcurrence. OnAugust 30, 2023, theCompany convened theThird Meeting oftheNinthBoard ofDirectorsandtheSecondMeetingofthe NinthBoardofSupervisors, atwhichtheproposaltitled"RegardingtheAdjustmentoftheRepurchasePriceandtheRepurchaseand Cancellation of Certain Restricted Shares under the A-Share Restricted Share Incentive Plan" was deliberated and approved. The company'sindependentdirectorsissuedtheirindependentopinionsexpressingconcurrence. OnSeptember15,2023,theCompanyconveneditssecondextraordinarygeneralmeetingofshareholdersfor2023,atwhichthe resolutions on the "Proposal to Amend the A-Share Restricted Stock Incentive Plan" and the "Proposal to Adjust the Repurchase Price oftheA-Share Restricted Stock Incentive Plan and to Repurchase and Cancel Certain Restricted Stocks" were deliberated and approved. On December 5, 2023, the Company completed the repurchase and cancellation of 2.033967 million restricted shares that had beengrantedtocertainoriginalincentiverecipientsbuthadnotyetmetthevestingconditions. On December 8, 2023, the Company convened the 12th meeting of the 9th Board of Directors and the 4th meeting of the 9th BoardofSupervisors,atwhichtheproposalregardingtheachievement ofconditionsforunlockingrestrictedstockundertheA-share restricted stock incentive plan was deliberated and approved. The Nomination and Remuneration Committee of the Company has expresseditsconsent. OnDecember27, 2023,theCompany disclosedthe"AnnouncementontheListingandCirculationofRestrictedSharesSubject to theA-ShareRestricted Stock IncentivePlan,"with thedateforthelistingandcirculationoftheunlocked sharesset forJanuary 2, 2024. On February 22, 2024, the Company convened the 17th meeting of the 9th Board of Directors and the 5th meeting of the 9th BoardofSupervisors,atwhichtheproposalentitled"RegardingtheAchievementofUnlockingConditionsfortheSecondTrancheof theA-Share Restricted Stock Incentive Plan" was deliberated and approved. The Nomination and Remuneration Committee of the Companyhasexpresseditsconsent. On March 2, 2024, the Company disclosed the "Notice on the Listing and Circulation of Restricted Shares in the Second Unlocking Period of the Initial Grant of the A-Share Restricted Stock Incentive Plan," with the listing and circulation date of the unlockedsharessetforMarch5,2024. On August 30, 2024, the Company convened the 26th meeting of the 9th Board of Directors and the 8th meeting of the 9th Board of Supervisors, at which the proposal titled "Regarding the Adjustment of the Repurchase Price and the Repurchase and Cancellation of Certain Restricted Shares under the A-Share Restricted Share Incentive Plan" was deliberated and approved. The NominationandRemunerationCommitteeoftheCompanyhasexpresseditsconsent. On September 19, 2024, the Company convened its 2024 Third Extraordinary General Meeting of Shareholders, which deliberated and approved the proposal titled "Regarding the Adjustment of the Repurchase Price for A-Share Restricted Stock IncentivePlanandtheRepurchaseandCancellationofCertainRestrictedStocks."
Page 28
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 27 On December 20, 2024, the Company completed therepurchase and cancellation of3.202973 million restricted shares that had beengrantedtocertainoriginalincentiverecipientsbuthadnotyetmetthevestingconditions. On December 26, 2024, the Company disclosed the "Announcement on the Listing and Circulation of Restricted Shares in the Second Unlocking Period of the Reserved Portion of theA-Share Restricted Stock Incentive Plan," with the listing and circulation dateoftheunlockedsharessetforDecember31,2024. On February 21, 2025, the Company convened the 38th meeting of the 9th Board of Directors and the 11th meeting of the 9th Board ofSupervisors, at which the proposal regardingthe achievement ofunlocking conditionsfor thethirdunlocking periodofthe A-share restricted stock incentive plan was deliberated and approved. The Nomination and Remuneration Committee of the Companyhasexpresseditsconsent. On March 4, 2025, the Company disclosed the "Notice on the Listing and Circulation of Restricted Shares in the Third Unlocking Period of the Initial Grant of the A-Share Restricted Stock Incentive Plan," with the listing and circulation date of the unlockedsharessetforMarch5,2025. On September 26, 2025, the Company convened its 45th meeting of the 9th Board of Directors, at which the proposal entitled "Regarding the Adjustment of the Repurchase Price for the A-Share Restricted Stock Incentive Plan and the Repurchase and Cancellation of Certain Restricted Stocks" was deliberated and approved. The Nomination and Remuneration Committee of the Companyhasexpresseditsconsent. On October 24, 2025, the Company convened its first extraordinary general meeting of shareholders for 2025, at which the proposal titled "Regarding the Adjustment of the Repurchase Price for Restricted Shares under the A-Share Restricted Share IncentivePlanandtheRepurchaseandCancellationofCertainRestrictedShares"wasdeliberatedandapproved. On November 28, 2025, the Company convened its 48th meeting of the 9th Board of Directors, at which the proposal titled "Regarding theAdjustment of the Repurchase Price for theA-Share Restricted Stock Incentive Plan" was deliberated and approved. TheNominationandRemunerationCommitteeoftheCompanyhasexpresseditsconsent. OnDecember30, 2025,theCompany disclosedthe"AnnouncementontheListingandCirculationofRestrictedSharesSubject to UnlockingundertheA-ShareRestricted StockIncentivePlan,"withthelistingandcirculationdatefortheunlocked shares set for January5,2026. On January 15, 2026, the Company completed the repurchase and cancellation of 1.161948 million restricted shares that had beengrantedtocertainoriginalincentiverecipientsbuthadnotyetmettheunlockingconditions. On February 28, 2026, the Company convened its 54th meeting of the 9th Board of Directors, at which the proposal entitled "Regarding the Repurchase and Cancellation of Certain Restricted Shares" was deliberated and approved. The Nomination and RemunerationCommitteeoftheCompanyhasexpresseditsconsent. On March 19, 2026, the Company convened its second extraordinary general meeting of shareholders for 2026, at which the proposalregardingtherepurchaseandcancellationofcertainrestrictedshareswasdeliberatedandapproved. On June 12, 2026, the Company completed therepurchaseand cancellation of18,564 restricted shares that had been granted to certainoriginalincentiverecipientsbuthadnotyetmetthevestingconditions. 2. Implementation status of the employee stock ownership plan □Applicable√NotApplicable 3. Other Employee Incentive Measures □Applicable√NotApplicable
Page 29
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 28 IV. Disclosure of Environmental Information Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental informationinaccordancewiththelaw. √Yes□No Number of enterprises included in the list of enterprises subject tomandatoryenvironmentalinformationdisclosure(units) 13 Serial Numb er EnterpriseName QueryIndexfortheReportonMandatoryDisclosureof EnvironmentalInformation 1 ChanganAutomobileCo.,Ltd.Yangfan ManufacturingPlant Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 2 ChongqingChanganAutomobileCo.,Ltd.Digital IntelligenceFactory Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 3 ChongqingChanganAutomobileCo.,Ltd.,Liangjiang Factory,PlantAreaNo.1 Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 4 ChongqingChanganAutomobileCo.,Ltd.Liangjiang Factory,PhaseIIPlant Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 5 ChongqingChanganAutomobileCo.,Ltd.Liangjiang Factory,PlantNo.3 Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 6 ChongqingChanganAutomobileCo.,Ltd.NewPower HEPlant Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 7 ChongqingChanganAutomobileCo.,Ltd.NewPower NEPlant Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 8 MoldDivision,ChongqingChanganAutomobileCo., Ltd. Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 9 ChongqingChanganAutomobileCo.,Ltd.Beijing ChanganAutomobileCompany Fordetails,pleaserefertotheCorporateEnvironmental InformationMandatoryDisclosureSystem(Beijing) (https://hjxxpl.bevoice.com.cn:8002/home). 10 ChongqingLingyaoAutomobileCo.,Ltd. Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Chongqing) (http://219.152.238.198:20041/eps/index/enterprise-search). 11 HefeiChanganAutomobileCo.,Ltd. Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Anhui) (https://39.145.37.16:8081/zhhb/yfplpub_html/#/home)orthe AnhuiDepartmentofEcologyandEnvironment (https://sthjt.ah.gov.cn/).Specialcolumnlink:"Mandatory DisclosureofCorporateEnvironmentalInformation" 12 NanjingChanganAutomobileCo.,Ltd. Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Jiangsu) (http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/web/ viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:18181 /spsarchive-webapp/web/sps/views/yfpl/views/yfplHomeNew/in dex.js). 13 HebeiChang'anAutomobileCo.,Ltd. Fordetails,pleaserefertotheEnterpriseEnvironmental InformationDisclosureSystem(Hebei). (http://121.29.48.71:8080/) V. Social Responsibility Situation ChanganAutomobile adheres to the guidance of Xi JinpingThought on Socialism with Chinese Characteristics for a New Era, thoroughlyimplementsthespiritofthe20thNationalCongressoftheCommunistPartyofChinaandallplenarysessionsofthe20th
Page 30
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 29 Central Committee, fully executes the State-owned Assets Supervision and Administration Commission's "Guidance on Central Enterprises High-Standardly Fulfilling Social Responsibilities in the New Era," as well as the work requirements from the Ministry ofAgriculture and RuralAffairs and the SASAC regarding central enterprises' assistance in comprehensive rural revitalization and targeted poverty alleviation, deeply integrates social responsibility and ESG concepts into the entire process of corporate strategy, governance, and operations, high-standardly fulfills political, economic, and social responsibilities, accelerates the transformation intoanintelligentlow-carbonmobilitytechnologycompany,andachieveshigh-qualitydevelopment. 1.Effectivelystrengthenenvironmental,social,andgovernance(ESG)initiatives. Establish and improve the ESG organizational structure by constructing a four-tier governance architecture spanning the board of directors, specialized committees, coordinating departments, and working groups, encompassing a "decision-making management-execution support" framework. Integrate ESG principles into corporate strategy by establishing a "1165" strategic framework, centering on the development vision of "Making the Earth Greener and Travel More Beautiful," fully leveraging the coordinatingroleoftheESGspecial workinggroup, andefficientlyadvancingtheimplementationoftheESGdevelopment strategy. Firmly fulfill the disclosure obligations of listed companies, strengthen high-level ESG information disclosure, and publish the ChineseandEnglishversionsofthe"ChanganAutomobile2025Environmental,Social,andGovernance(ESG)Report"onschedule, systematically disclosing over 10 specialized policies and statements on sustainable development, including supply chain managementandhumanrightspolicies,therebyachievinganAAratinginbothWindandChinaIndexESGassessments. 2.Activelycarryoutsocialpublicwelfareactivities. Adhering to the user-centric "Partner+" brand as the core, we organized Changan Avatr, Deepal, Changan NEVO, Changan Automobile, and Changan Kaicheng to implement "Partner+ Public Welfare," deeply engaging in the major national strategy of ecological protection in the Yellow River Basin, and establishing the "withU Yellow River Protection Season" central enterprise public welfare brand; we successively launched three thematic campaigns—tree planting and greening, wetland bird conservation, and riverbank cleanup—in TaiRMB, Bayannur, and Dongying; furthermore, we swiftly initiated emergency care and service guarantee actions in response to the rainstorm and flooding in Guangxi, fully ensuring user travel safety and minimizing property losses. In the first half of the year, the company focused on low-carbon environmental protection, educational assistance through compassion,andsocialcare,activelycarryingoutsocialresponsibilitypracticesandmobilizingover130,000userstoparticipate. Avatr has effectively integrated its brand's technological advantages with public welfare initiatives by collaborating with One Foundation to launch the 2026 "Joy for Self, Joy for Others · Public Welfare Campaign," supporting the "One Foundation · One Paradise Science and Technology Innovation Classroom" Item through charity market sales, with over 5,000 employees and users participatingtojointlyempowerruraleducation. Marking its fourth anniversary, Deep Blue Automobile launched the "Return of Migratory Birds, Trust with Promise" bird conservation public welfare initiative at the Wuliangsu National Nature Reserve in Inner Mongolia, organizing users nationwide to participateinnestconstruction,migratorybirdobservation,andshorelinelittercleanuptosupportecologicalprotectionintheYellow River Basin. During the User Service Month, Deep Blue car owners coordinated with local car clubs across the nation to jointly participatein wetlandecological protectionactivities in one hundred citiesthroughout China. During theSpringFestival travel rush, a special public welfare service titled "Warm Journey Home" is launched to provide travel safety assurance and emergency support forreturningresidents. ChanganNEVO,incollaborationwithQingsuoPublicWelfare, haslaunchedthe"OasisNEVOInitiative" andimplementedthe "Desert Border Locking Action" to reinforce the ecological security barrier of the Hexi Corridor, thereby contributing to desertification control and biodiversity conservation. Mobilizing national dealers, car owner clubs, and a vast community of compassionate vehicle owners, we launched a public welfare initiative to provide free exam transportation, issued a "silent escort" appeal,andpledgedtosafeguardthedreamsofyouth. ChanganAutomobile is committed to building the "Love with Partner Support Group" public welfare IP, focusing on four key areas: education assistance, elderly care, poverty alleviation, and ecological protection; in the first half of the year, it collaborated
Page 31
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 30 with the Changan car owner community to organize 15 public welfare events, with over 500 car owners participating offline. In the realm of educational assistance and dream-building, we visited primary schools in multiple locations across Chongqing, Shandong, and Sichuan to deliver learning supplies and growth-oriented care to students; regarding elderly care and poverty alleviation, we conducted donation and visitation activities at the Foshan Disabled Children and Orphan Rescue Center and the Liaoning SOS Rescue Center, launched a search operation for missing elderly persons in Shandong, and interpreted ChanganAutomobile's social responsibility and brand warmth through sustained action; in terms of ecological protection, Chongqing car owners ventured deep intothemountainstocarryoutpublicwelfaretreeplanting,whileShijiazhuangcarownersinitiatedthe"GuardingtheMotherRiver" beachcleanupcampaign,safeguardinggreenwatersandlushmountainsthroughconcreteactions. Changan Kaichenghasestablishedastrategic partnership with theInternational ExchangeCenteroftheMinistry ofEmergency Management to actively explore international cooperation mechanisms and solutions for natural disaster prevention and emergency management under the "Belt and Road" Initiative. Focusing on the entrepreneurial needs of returning new-generation farmers, we leverage the agricultural drone industry as a strategic entry point to provide technical support and industrial empowerment to returningentrepreneurs,therebydrivingimprovementsinagriculturalproductionefficiency. 3.Givefullsupporttothecomprehensiverevitalizationofruralareas. Actively integrateadvantageousresources, innovateandimproveindustrialassistancemeasures, deepencomprehensivesupport for the entire camellia oil industry chain in Youyang, and continuously drive an average annual income increase of approximately 4,000 RMB per household for over 50,000 tea farmers across the county; donate ten years' supply of Youyang camellia oil to Xiaogang Village, Xiaohe Town, Youyang, accompanied by the delivery of Changan NEVO A06 commuter vehicles to solidify age-friendly rural livelihood security; leverage the full-domain sales channel to broaden the marketing of Youyang camellia oil, achieving a camellia oil sales revenueof6.824 million RMBforYouzhou Camellia OilTechnology Company in thefirst halfof the year and facilitating the sale of 21,500 RMB worth of Youyang "800 RMB" mineral water, thereby empowering industrial developmenttodrivethesustainablegrowthoflocalcharacteristicindustries. We vigorously promoted consumption-based assistance to consolidate and expand the achievements of poverty alleviation in designated assistance areas, organized the "Walking Together with 30 Million People: A New Chang'an for the New Year" spring festival theme event, released promotional posters for consumption assistance, and established a direct bridge between high-quality agricultural products from Luchixi and Yanshan counties in Yunnan Province, which are under paired assistance, and the general workforce through product promotion and interactive experiences; the total amount of consumption assistance in thefirst halfof the year reached 216,312 RMB, effectively contributing to consolidating the achievements of poverty alleviation and enhancing the qualityandefficiencyofruralindustriesinformerpoverty-strickenareasthroughconcreteactions.
Page 32
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 31 Chapter 5 Important Matters I. The actual controller, shareholders, related parties, acquirers and other relevant parties of the Company have fulfilled the commitments during the reporting period and have not been fulfilled by the end of the reporting period □Applicable√NotApplicable During the reporting period, there were no commitments made by the actual controllers, shareholders, related parties, acquirers, and otherrelevantpartiesofthecompanythatwerefullyfulfilledduringthereportingperiodorremainedunfulfilledbeyondthedeadline asoftheendofthereportingperiod. II. Non-operating funds the listed company occupied by controlling shareholders and their related parties □Applicable√NotApplicable During the reporting period, the Company had no non-operating misappropriation of funds by the controlling shareholder or other relatedparties. III. Irregular external guarantee □Applicable√NotApplicable Duringthereportingperiod,thecompanyhadnoinstancesofnon-compliantexternalguarantees. IV. Appointment and Dismissal of Accounting Firms Hasthesemi-annualfinancialreportbeenaudited? □Yes√No Thecompany'ssemi-annualreporthasnotbeenaudited. V. Explanation by the Board of Directors Regarding the "Non-Standard Audit Report" Issued by the Accounting Firm for the Current Reporting Period □Applicable√NotApplicable VI. Explanation by the Board of Directors Regarding the Circumstances Related to the "Non-Standard Audit Report" on the Previous Year's Financial Statements □Applicable√NotApplicable VII. Bankruptcy and restructuring □Applicable√NotApplicable
Page 33
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 32 Nobankruptcyreorganization-relatedmattersoccurredduringthereportingperiodofthecompany. VIII. Crucial litigation events SignificantLitigationandArbitrationMatters □Applicable√NotApplicable Duringthisreportingperiod,theCompanyhadnosignificantlitigationorarbitrationmatters. Otherlitigationmatters □Applicable√NotApplicable IX. Disciplinary Actions and Rectification Measures □Applicable√NotApplicable Duringthereportingperiod,thecompanywasnotsubjecttoanypenaltiesorrectificationmeasures. X. Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller □Applicable√NotApplicable XI. Material Related-Party Transactions 1. Related-party transactions related to daily operations. √Applicable□NotApplicable Fordetails,pleaserefertoNote14"RelatedPartiesandRelatedPartyTransactions"intheNotestotheFinancialStatementsofthe FinancialReport. 2. Related-party transactions arising from the acquisition or disposal of assets or equity interests. □Applicable√NotApplicable Duringthereportingperiod,theCompanydidnotengageinanyrelated-partytransactionsinvolvingtheacquisitionordisposalof assetsorequityinterests. 3. Related-party transactions arising from joint external investments. □Applicable√NotApplicable 4. Related creditor and debtor balances √Applicable□NotApplicable Fordetails,pleaserefertoNote14"RelatedPartiesandRelatedPartyTransactions"intheNotestotheFinancialStatementsofthe FinancialReport. Arethereanynon-operatingrelated-partycreditor-debtorrelationships? □Yes√No
Page 34
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 33 Duringthereportingperiod,theCompanyhadnonon-operatingrelated-partycreditor'sordebtor'srelationships. 5. Transactions with associated financial companies √Applicable□NotApplicable Depositbusiness Related parties Relationship Daily maximum deposit limit(inten thousand RMB) Deposit interestrate range Opening balance(in ten thousand RMB) Currentperiodturnover Ending balance (inten thousand RMB) TotalDeposit Amountfor ThisPeriod(in TenThousand RMB) Totalamount withdrawnin thisperiod(in tenthousand RMB) Financial Co., Ltd. of the Ordnance Equipment Group Controlled by the same ultimate holding company. 2,000,000 0.25%-3.5% 1,998,087 6,145,363 6,225,069 1,918,381 Changan Automobile Finance Co., Ltd. Controlled by the same ultimate holding company. 2,000,000 1.7%-1.9% 1,126,000 539,000 665,000 1,000,000 Loanbusiness Related parties Relationship LoanLimit (in10,000 RMB) Loaninterest raterange Opening balance(in ten thousand RMB) Currentperiodturnover Ending balance (inten thousand RMB) TotalLoan Amountfor ThisPeriod(in TenThousand RMB) Total Repayment Amountfor ThisPeriod(in 10,000RMB) Financial Co., Ltd. of the Ordnance Equipment Group Controlled by the same ultimate holding company. 100,000 2.11%-2.8% 54,800 3,170 3,600 54,370 Creditgrantingorotherfinancialservices Relatedparties Relationship BusinessType TotalAmount(in 10,000RMB) ActualAmount(in 10,000RMB) Financial Co., Ltd. of the Ordnance EquipmentGroup Controlled by the same ultimate holding company. Creditapproval 1,700,000 202,833 6. Transactions between the company's controlled finance company and related parties □Applicable√NotApplicable 7. Other Significant Related-Party Transactions □Applicable√NotApplicable
Page 35
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 34 XII. Major Contracts and Their Performance 1. Status of entrusted management, contracting, and leasing matters. (1) Custody Status □Applicable√NotApplicable Thecompanyhadnoentrustmentarrangementsduringthereportingperiod. (2) Contracting Status □Applicable√NotApplicable TheCompanyhadnocontractingarrangementsduringthereportingperiod. (3) Leasing Status √Applicable□NotApplicable DetailsregardingrelatedpartyleasesareprovidedinNote14"RelatedPartiesandRelatedPartyTransactions,"Item5(2),ofthe financialstatementnotes. Itemswhoseprofitorlossimpactonthecompanyexceeds10%ofthecompany'stotalprofitforthereportingperiod. □Applicable√NotApplicable Duringthereportingperiod,theCompanyhadnoleaseItemsthatcontributedtoprofitorlossexceeding10%oftheCompany'stotal profitfortheperiod. 2. Major Guarantees □Applicable√NotApplicable Duringthereportingperiod,theCompanyhadnosignificantguaranteearrangements. 3. Entrusted Asset Management □Applicable√NotApplicable Thecompanyreportednoentrustedwealthmanagementactivitiesduringthereportingperiod. 4. Other material contracts □Applicable√NotApplicable Thecompanyhadnoothermaterialcontractsduringthereportingperiod. XIII. Registration Form for Activities Including Research, Communication, and Interviews Conducted During the Reporting Period √Applicable□NotApplicable Receptionhours Reception Reception Typeof Reception Themaintopics IndexofBasicSurveyConditions
Page 36
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 35 venue methods Recipient guests discussedandthe materialsprovided. January14,2026– January16,2026 Shanghai Roadshow event Institutio n 32 institutional investors includingUBS Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Sheet dated January 16, 2026," published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn) on January 16, 2026. January23,2026 Company conference room Field research Institutio n Four institutional investors including Huatai Securities. Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Sheet dated January 23, 2026," published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn) on January 23, 2026. February11,2026 Company conference room Field research Institutio n GF Securities and 10 other institutional investors Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Form dated February 11, 2026" published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn) on February 11, 2026. March 4, 2026 – March11,2026 Shanghai, Guangzhou, and Shenzhen Roadshow event Institutio n 28 institutional investors including Guolian Minsheng Securities. Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Sheet dated March 12, 2026," published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn) on March 12, 2026. April13,2026 The"Cloud Interview" columnon the "Interactive Easy" platform. Online interaction onnetwork platforms. Others For public investors Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Sheet dated April 13, 2026," published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn) on April 13, 2026. April28,2026 The"Cloud Interview" columnon the "Interactive Easy" platform. Online interaction onnetwork platforms. Others For public investors Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Sheet dated April 28, 2026," published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn) on April 28, 2026. May 12, 2026 – May13,2026 Shanghai Roadshow event Institutio n Ten institutional investors including HuaRMB Securities. Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Sheet dated May 14, 2026," published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn)onMay14,2026. June18,2026 Company conference room Field research Institutio n Seven institutional investors including Southwest Securities. Company operating status and strategic planning,etc. For details, please refer to the "Changan Automobile: Investor Relations Activity Record Sheet dated June 18, 2026," published on the Shenzhen Stock Exchange's Interactive Easy platform (http://irm.cninfo.com.cn)onJune19,2026. XIV. Explanation of Other Significant Matters □Applicable√NotApplicable Therearenoothersignificantmattersrequiringexplanationduringthereportingperiodofthecompany.
Page 37
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 36 XV. Important matters of the Company's subsidiary □Applicable√NotApplicable
Page 38
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 37 Chapter 6 Share Changes and Shareholder Information I. Changes in Share Capital 1. Changes in shareholding structure Unit:Shares Priortothischange Netincreaseordecreaseinthischange(+,-) Followingthismodification Quantity Ratio Issui ng new shar es Stock divide nd Conversi onof providen tfund into shares Others Subtotal Quantity Ratio I.ShareswithRestrictedConditions 5,263,872 0.05% -994,417 -994,417 4,269,455 0.04% 1.State-ownedlegalentity shareholding 2.Otherdomesticshareholdings 5,263,872 0.05% -994,417 -994,417 4,269,455 0.04% Amongthem:sharesheldby domesticlegalentities. Shareholding by domestic naturalpersons 5,263,872 0.05% -994,417 -994,417 4,269,455 0.04% 3.Foreignequityholdings Amongthem:shareholdingby foreignlegalentities. Shareholding by natural persons residingoutsidetheterritory. II.ShareswithNoLock-up Restrictions 9,908,822,188 99.95% -186,095 -186,095 9,908,636,093 99.96% 1.RMBordinaryshares 8,267,207,411 83.40% -186,095 -186,095 8,267,021,316 83.40% 2.Foreignshareslisted domestically 1,641,614,777 16.56% 1,641,614,777 16.56% III.TotalNumberofShares 9,914,086,060 100.00% -1,180,512 -1,180,512 9,912,905,548 100.00% Reasons for changes in shareholding √Applicable□NotApplicable (1)PartialrepurchaseandcancellationofrestrictedsharesofcertainA-sharelistedcompanies. Thecompanycompletedtherepurchaseandcancellationof1,161,948restrictedsharesand18,564restrictedshares,respectively,
Page 39
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 38 whichhadbeengrantedtocertainoriginalincentiverecipientsbutwerenotyet eligibleforunlocking,onJanuary15,2026,andJune 12,2026,respectively,reducingthecompany'stotalsharecapitalfrom9,914,086,060sharesto9,912,905,548shares. (2)Othercausesofchanges Thecompany'sshareswithoutlock-uprestrictions.Otherchangeswerecausedbyfluctuationsinsharesheldbysenior executivessubjecttotradingrestrictions. Approval status of share changes √Applicable□NotApplicable The matters regarding the repurchase and cancellation of restrictedA-share stocks were approved by the Company's 9th Board of Directors at its 45th meeting on September 26, 2025, the 1st Extraordinary General Meeting of Shareholders in 2025, the 9th Board of Directorsat its 54th meeting on October 24, 2025, and the 2nd Extraordinary General MeetingofShareholders in 2026 on February28,2026,andMarch19,2026. Transfer details regarding changes in shareholding. √Applicable□NotApplicable Fordetails,pleaserefertoChapter6,I,Item1,"Changesinshareholdings". Progress on the implementation of share repurchase √Applicable□NotApplicable As of the end of the reporting period, the Company repurchased 146,762,341 shares of its own stock through its dedicated securities account for share repurchases via centralized bidding transactions, representing 1.48052% of the Company's total share capitalatthattime,withatotalamountpaidofRMB812,001,538.43(excludingtransactionfees,convertedat themid-exchangerate of1HKDto0.86855RMBasofJune30,2026);thespecificdetailsareasfollows: Repurchased66,392,392A-shares,representing0.66976%ofthecompany'scurrenttotalsharecapital.Amongthem,thehighest transaction price was 10.32 RMB per share, the lowest transaction price was 6.84 RMB per share, and the total transaction amount was561,419,716.04RMB(excludingtransactionfees). Repurchased80,369,949B-shares,representing0.81076%ofthecompany'scurrenttotalsharecapital.Amongthese,thehighest transaction price was HKD 4.03 per share, the lowest was HKD 3.16 per share, and the total transaction amount was HKD 288,505,926.42(excludingtransactionfees),equivalenttoRMB250,581,822.39(convertedatthemid-rateof1:0.86855betweenthe HongKongdollarandtheRenminbionJune30,2026). Implementation progress regarding the reduction of repurchased shares through centralized bidding. □Applicable√NotApplicable The impact of changes in share capital on financial indicators such as basic and diluted earnings per share for the most recent year and the most recent reporting period, as well as net assets per share attributable to ordinary shareholders of the company. √Applicable□NotApplicable The changes in share capital have no significant impact on financial indicators such as basic and diluted earnings per share for themostrecentyearandthemostrecentperiod,aswellasnetassetspershareattributabletoordinaryshareholdersofthecompany. Other matters that the company deems necessary to disclose or that are required to be disclosed by securities regulatory authorities. □Applicable√NotApplicable 2. Changes in Restricted Shares √Applicable□NotApplicable
Page 40
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 39 Unit:Shares ShareholderName Initial restricted sharecount Numberof shares released from lock-upin thisperiod. Thisissue increases the numberof restricted shares. Numberof restrictedshares attheendofthe academicterm. Reasonsfor thetrading restriction. Unlockdate A-sharerestricted stock 1,180,512 1,180,512 0 0 Repurchase and cancellation of restricted stock 1.OnJanuary15,2026,1,161,948restricted shareswerecancelled. 2. On June 12, 2026, 18,564 restricted shareswerecancelled. Othershareholders 4,083,360 0 186,095 4,269,455 Locked-in shares held by senior executives Release the lock according to the relevant regulations. Total 5,263,872 1,180,512 186,095 4,269,455 -- -- II. Securities Issuance and Listing Status □Applicable√NotApplicable III. Shareholding and shareholders of the company Unit:Shares Totalnumberofordinary shareholdersasoftheendofthe reportingperiod 598,984 Totalnumberofpreferredshareholderswith restoredvotingrightsasoftheendofthereporting period(ifapplicable) 0 Shareholdingstatusofordinaryshareholdersholding5%ormoreofthetotalsharesorthetop10ordinaryshareholders(excludingshareslentoutthrough thesecuritieslendingandborrowingmechanism). ShareholderName Natureof Shareholders Shareholding ratio Numberof sharesheldat theendofthe reporting period Changes duringthe reporting period Numberof sharesheld subjectto restricted trading conditions Numberof ordinaryshares heldwithout lock-up restrictions. Pledge,marking,or freezingstatus Share status Quantity ChenzhiAutomotiveTechnology GroupCo.,Ltd. State-owned legalperson 17.99% 1,783,090,143 0 0 1,783,090,143 Not applicable. ChinaChanganAutomobile GroupCo.,Ltd. State-owned legalperson 14.23% 1,410,747,155 0 0 1,410,747,155 SouthernIndustryAsset ManagementCo.,Ltd. State-owned legalperson 4.60% 456,253,257 0 0 456,253,257
Page 41
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 40 UnitedProsperityInvestmentCo., Ltd. Foreignlegal person 2.88% 285,405,718 2,530,841 0 285,405,718 HongKongSecuritiesClearingCo., Ltd. Foreignlegal person 0.96% 95,044,686 -3,751,272 0 95,044,686 ChinaReformInvestment HoldingsLimited State-owned legalperson 0.48% 47,390,600 0 0 47,390,600 ChinaMerchantsSecurities (HongKong)Limited Foreignlegal person 0.30% 29,715,732 -1,931,006 0 29,715,732 VanguardTotalInternational StockIndexFund Foreignlegal person 0.21% 20,598,199 0 0 20,598,199 VanguardEmergingMarkets StockIndexFund Foreignlegal person 0.19% 18,818,331 0 0 18,818,331 NORGESBANK Foreignlegal person 0.17% 17,044,920 0 0 17,044,920 Explanationoftheaforementionedshareholder relationshipsorconcertedactions. Among the top ten shareholders, China ChanganAutomobile Group Co., Ltd., the indirect controlling shareholder, its wholly-owned subsidiary Chenzhi Automotive Technology Group Co., Ltd., and Chenzhi Automotive Technology Group Co., Ltd.'s wholly-owned subsidiary Zhonghui Futong Investment Co., Ltd. constitute acting-in-concert parties as stipulated in the "Administrative Measures fortheAcquisitionofListedCompanies." Explanationregardingtheaforementioned shareholders'involvementinentrustedor entrustedvotingrightsandthewaiverofvoting rights. None SpecialNoteRegardingtheRepurchaseSpecial AccountAmongtheTopTenShareholders As of June 30, 2026, the Company held 146,762,341 shares of its own stock through its dedicated securitiesaccountforsharerepurchases,representing1.48052%oftheCompany'stotalsharecapitalat that time. In accordance with relevant regulations, the special account for share repurchase is not includedinthetablelistingthetoptenshareholders,andthisisherebyexplained. Thetop10withnolock-upconditions.Shareholdingstatusofshareholders(excludingshareslentviasecuritieslendingandrefinancingandshareslocked forseniorexecutives) ShareholderName Numberofunrestrictedshares heldattheendofthereporting period. TypesofShares TypesofShares Quantity ChenzhiAutomotiveTechnologyGroupCo.,Ltd. 1,783,090,143 RMBordinaryshares 1,783,090,143 ChinaChanganAutomobileGroupCo.,Ltd. 1,410,747,155 RMBordinaryshares 1,410,747,155 SouthernIndustryAssetManagementCo.,Ltd. 456,253,257 RMBordinaryshares 456,253,257 UnitedProsperityInvestmentCo.,Ltd. 285,405,718 Domestic-listedforeign shares 285,405,718 HongKongSecuritiesClearingCo.,Ltd. 95,044,686 Domestic-listedforeign shares 95,044,686 ChinaReformInvestmentHoldingsLimited 47,390,600 RMBordinaryshares 47,390,600 ChinaMerchantsSecurities(HongKong)Limited 29,715,732 Domestic-listedforeign 29,715,732
Page 42
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 41 shares VanguardTotalInternationalStockIndexFund 20,598,199 Domestic-listedforeign shares 20,598,199 VanguardEmergingMarketsStockIndexFund 18,818,331 Domestic-listedforeign shares 18,818,331 NORGESBANK 17,044,920 Domestic-listedforeign shares 17,044,920 Explanationoftherelationshipsorconcerted actionsamongthetoptenshareholdersof ordinaryshareswithouttradablerestrictions,as wellasbetweenthetoptenshareholdersof ordinaryshareswithouttradablerestrictionsand thetoptenshareholdersofordinaryshares. Amongthetoptenshareholders,ChinaChanganAutomobileGroupCo.,Ltd.,theindirectcontrolling shareholder,itswholly-ownedsubsidiaryChenzhiAutomotiveTechnologyGroupCo.,Ltd.,and ChenzhiAutomotiveTechnologyGroupCo.,Ltd.'swholly-ownedsubsidiaryZhonghuiFutong InvestmentCo.,Ltd.constituteacting-in-concertpartiesasstipulatedinthe"AdministrativeMeasures fortheTakeoverofListedCompanies." DescriptionoftheMarginTradingandShort SellingBusinessParticipationbytheTop10 OrdinaryShareholders(ifapplicable) None Status of shares lent by shareholders holding more than 5%, the top 10 shareholders, and the top 10 shareholders of tradable non-restrictedsharesparticipatinginthesecuritieslendingbusinessviathesecuritiesfinancingtransactionplatform. □Applicable√NotApplicable Changes in the top 10 shareholders and the top 10 shareholders of tradable shares without lock-up restrictions occurred due to securitieslendingandborrowingtransactionsunderthesecuritiesfinancingmechanism. □Applicable√NotApplicable The top ten ordinary shareholders and the top ten shareholders with unrestricted tradable shares of the company. Did common shareholdersengageinagreedrepurchasetransactionsduringthereportingperiod? □Yes√No No agreed repurchase transactions were conducted by the top ten ordinary shareholders or the top ten ordinary shareholders with unrestrictedtradablesharesduringthereportingperiod. IV. Changes in Shareholdings by Directors and Senior Management Personnel □Applicable√NotApplicable Therewerenochangesintheshareholdingofthecompany'sdirectorsandseniormanagementpersonnelduringthereportingperiod; fordetails,pleaserefertothe2025AnnualReport. V. Changes in the Controlling Shareholder or Actual Controller Changeinthecontrollingshareholderduringthereportingperiod. □Applicable√NotApplicable Duringthereportingperiod,therewasnochangeinthecontrollingshareholderofthecompany. Changeintheactualcontrollerduringthereportingperiod.
Page 43
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 42 □Applicable√NotApplicable TheactualcontrolleroftheCompanyhasnotchangedduringthereportingperiod. VI. Relevant Information on Preferred Shares □Applicable√NotApplicable Duringthereportingperiod,theCompanyhadnooutstandingpreferredshares.
Page 44
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 43 Chapter 7 Bonds √Applicable□NotApplicable I. Corporate Bonds □Applicable√NotApplicable Duringthereportingperiod,thecompanydidnotissueanycorporatebonds. II. Corporate Bonds √Applicable□NotApplicable 1. Basic Information on Corporate Bonds Unit:10,000RMB BondName BondShort Name BondCode Release date Value date Maturity date Bond balance Interes trate Principaland interestrepayment method Tradi ng venu e Chongqing Changan Automobile Co., Ltd. 2022 Public Offering of Technology Innovation Corporate Bonds for Professional Investors (First Tranche) 22 Changan K1 148147.SZ Decemb er 19, 2022 Decemb er 20, 2022 Decemb er 20, 2027 100,000 3.00% Simple interest is calculated annually without compounding. Interest is paid annually, the principalisrepaidin a lump sum at maturity, and the final interest payment is made concurrently with the principal repayment. Shen zhen Stoc k Exch ange Investorsuitabilityarrangements(ifany) The issuance target for this bond is professional institutional investors who have opened A-share securities accounts at the Shenzhen Branch of China Securities Depository and Clearing Limited Company, except for those prohibited by laws and regulationsfrompurchasing. Applicabletradingmechanisms Auctiontradingandblocktrading Is there a risk of termination of listing (if applicable) and what are the corresponding mitigationmeasures? Doesnotexist. Overduebondsthathavenotbeenrepaid □Applicable√NotApplicable
Page 45
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 44 2. Triggering and implementation status of issuer or investor option clauses and investor protection clauses. □Applicable√NotApplicable 3. Adjustments to credit rating results during the reporting period □Applicable√NotApplicable 4. Execution and changes in the implementation of guarantee arrangements, debt repayment plans, and other debt repayment safeguard measures during the reporting period, and their impact on the rights and interests of bond investors. □Applicable√NotApplicable III. Debt Financing Instruments of Non-Financial Enterprises □Applicable√NotApplicable Duringthereportingperiod,theCompanyheldnodebtfinancinginstrumentsfornon-financialenterprises. IV. Convertible Corporate Bonds □Applicable√NotApplicable Duringthereportingperiod,theCompanyhadnooutstandingconvertiblecorporatebonds. V. Losses of Scope of Consolidated Financial Statements during the Reporting Period Exceeding 10% of Net Assets up the Period-end of Last Year □Applicable√NotApplicable VI. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the Company up the Period-end Unit:10,000RMB Item Attheendofthereporting period. Attheendoflastyear. Theincreaseordecreaseat theendofthisreporting periodcomparedtotheendof thepreviousyear. Currentratio 1.22 1.21 0.83% Debt-to-AssetRatio 57.54% 59.61% -2.07% QuickRatio 0.97 1 -3.00% Thisreportingperiod Thesameperiodlastyear Increaseordecrease comparedtothesameperiod ofthepreviousreporting period
Page 46
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 45 Net profit after deducting non-recurring gains and losses 25,082.67 279,502.53 -91.03% EBITDA-to-total-debtratio 3.35% 8.41% -5.06% InterestCoverageRatio 6.00 13.65 -56.04% CashInterestCoverageRatio -208.79 17.22 -1312.49% EBITDA interest coverage ratio 66.09 95.45 -30.76% Loanrepaymentrate 100% 100% 0.00% InterestCoverageRatio 100% 100% 0.00%
Page 47
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 46 Chapter 8 Financial Report I. Audit Report Thecompany'ssemi-annualfinancialreportisunaudited. II. Financial Statements Theunitofmeasurementforthefinancialstatementsinthenotestothefinancialstatementsis:RenminbiRMB. 1. Consolidated Balance Sheet Preparedby:ChongqingChanganAutomobileCo.,Ltd. Unit:RMB Item Closingbalance Openingbalance CurrentAssets: Cashandcashequivalents 39,651,834,716.85 54,021,735,265.29 Tradingfinancialassets 128,326,557.59 NotesReceivable 26,032,074,330.21 32,997,945,089.19 AccountsReceivable 7,500,132,576.25 4,196,844,647.15 Prepayments 929,391,725.42 492,287,143.77 Otherreceivables 967,587,420.26 882,272,960.21 Amongthem:dividendsreceivable Inventory 23,115,384,353.37 22,518,286,370.64 Contractassets 158,686,119.07 155,271,537.07 Non-currentassetsduewithinoneyear 2,859,599,105.37 1,490,708,211.34 Othercurrentassets 12,426,166,046.14 11,797,921,098.67 Totalcurrentassets 113,769,182,950.53 128,553,272,323.33 Non-currentassets: Long-termreceivables 1,274,106,334.49 1,274,106,334.49 Long-termequityinvestment 20,549,846,834.08 20,426,682,382.90 Otherequityinstrumentinvestment 692,201,858.72 692,201,858.72 Investmentrealestate 5,629,224.58 5,742,580.36 Fixedassets 22,310,782,207.86 22,048,786,066.87 Constructioninprogress 1,214,566,887.41 1,028,734,574.34 Right-of-useassets 345,883,003.44 396,605,258.85 Intangibleassets 18,403,256,505.13 17,225,098,767.53 Developmentexpenditure 2,408,629,711.58 3,395,674,763.46 Goodwill 1,996,118,322.34 1,810,730,443.16 Long-termdeferredexpenses 20,729,162.51 16,720,940.28 Deferredincometaxassets 3,559,109,474.51 3,495,470,770.57
Page 48
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 47 Othernon-currentassets 1,138,665,712.78 2,591,246,110.90 Totalnon-currentassets 73,919,525,239.43 74,407,800,852.43 Totalassets 187,688,708,189.96 202,961,073,175.76 Currentliabilities: Short-termborrowing 43,728,914.90 512,275,913.93 Notespayable 37,614,691,461.41 43,979,523,780.79 Accountspayable 23,676,006,045.62 29,841,076,563.69 Advancereceipts 44,780,244.06 408,273.22 Contractualliabilities 8,418,775,954.69 6,908,609,058.22 Payrollpayable 1,955,579,723.67 4,237,501,344.56 Taxespayable 480,436,909.31 852,993,806.83 Otherpayables 7,271,787,112.04 5,871,006,412.33 Including:Dividendpayable 1,138,608,888.49 Non-currentliabilitiesduewithinone year 688,522,019.68 698,694,814.67 Othercurrentliabilities 12,808,605,313.64 13,157,375,543.64 Totalcurrentliabilities 93,002,913,699.02 106,059,465,511.88 Non-currentliabilities: Long-termloan 41,502,388.14 Bondspayable 999,852,830.16 999,803,773.56 Leaseliabilities 219,290,767.20 299,147,228.72 Long-termpayables 2,620,385,614.31 2,544,487,345.21 Long-termpayrollpayable 21,810,146.42 24,579,373.29 Estimatedliabilities 8,369,508,011.26 8,144,754,556.93 Deferredincome 84,966,336.67 80,699,392.58 Deferredincometaxliabilities 1,553,732,159.83 1,570,443,322.44 Othernon-currentliabilities 1,076,573,398.85 1,252,965,662.48 Totalnon-currentliabilities 14,987,621,652.84 14,916,880,655.21 Totalliabilities 107,990,535,351.86 120,976,346,167.09 Owner'sequity: Sharecapital 9,912,905,548.00 9,914,086,060.00 Capitalreserve 8,645,661,085.12 8,980,708,730.02 Less:Treasuryshares 790,291,729.28 3,395,829.33 Othercomprehensiveincome -26,821,579.31 -134,796,483.22 Specialreserve 156,427,005.85 119,363,825.70 Surplusreserve 4,957,043,030.00 4,957,043,030.00 Undistributedprofit 53,181,955,148.21 53,503,168,524.85 Totalowner'sequityattributabletoparent company 76,036,878,508.59 77,336,177,858.02 Minorityequity 3,661,294,329.51 4,648,549,150.65 Totalowner'sequity 79,698,172,838.10 81,984,727,008.67 Totalliabilitiesandowner'sequity 187,688,708,189.96 202,961,073,175.76 LegalRepresentative:ZhuHuarong;PersoninChargeofAccountingWork:NiErke;HeadofAccountingInstitution:ShiHaifeng
Page 49
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 48 2. Consolidated Balance Sheet of the Parent Company Unit:RMB Item Closingbalance Openingbalance CurrentAssets: Cashandcashequivalents 16,221,324,982.45 22,301,967,575.49 Tradingfinancialassets NotesReceivable 20,254,048,407.55 19,585,803,950.63 AccountsReceivable 25,858,605,045.27 24,203,175,774.47 Prepayments 645,887,985.31 381,073,238.75 Otherreceivables 253,436,165.07 222,763,091.21 Amongthem:dividendsreceivable Inventory 5,253,669,446.24 5,834,632,966.42 Contractassets 29,039,566.00 28,582,638.00 Non-currentassetsduewithinoneyear 2,859,599,105.37 1,490,708,211.34 Othercurrentassets 7,013,535,603.11 6,412,278,554.97 Totalcurrentassets 78,389,146,306.37 80,460,986,001.28 Non-currentassets: Long-termreceivables 1,274,106,334.49 1,274,106,334.49 Long-termequityinvestment 30,957,929,145.65 30,801,868,924.42 Investmentsinotherequity instruments 585,201,858.72 585,201,858.72 Fixedassets 15,009,821,384.31 15,251,029,495.02 Constructioninprogress 879,748,324.66 739,741,390.10 Right-of-useasset 86,816,466.75 121,256,863.93 Intangibleassets 7,080,779,463.37 5,196,957,745.98 Developmentexpenditures 1,696,158,605.09 2,846,370,021.29 Long-termdeferredexpenses 6,238,106.14 5,435,297.36 Deferredtaxassets 2,515,762,878.79 2,521,424,194.39 Othernon-currentassets 1,138,497,708.34 2,591,246,110.90 Totalnon-currentassets 61,231,060,276.31 61,934,638,236.60 TotalAssets 139,620,206,582.68 142,395,624,237.88 Currentliabilities: NotesPayable 25,310,476,975.68 26,871,167,837.85 AccountsPayable 15,922,655,292.62 18,505,916,072.53 Contractliabilities 5,387,212,966.15 2,892,961,630.35 Employeebenefitspayable 1,078,195,385.59 2,547,750,272.34 Taxespayable 125,190,668.23 271,516,738.31 Otherpayables 4,151,878,201.45 3,854,891,164.38 Amongthem:dividendspayable 1,138,608,888.49 Non-currentliabilitiesduewithinone year 594,475,384.34 630,648,070.10 Othercurrentliabilities 7,783,403,747.63 7,635,677,878.38
Page 50
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 49 TotalCurrentLiabilities 60,353,488,621.69 63,210,529,664.24 Non-currentliabilities: Long-termborrowings 41,502,388.14 Bondspayable 999,852,830.16 999,803,773.56 Leaseliabilities 17,339,676.09 76,396,101.49 Long-termpayables 1,671,940,225.22 1,611,384,584.07 Long-termpayrollpayable 14,486,236.35 16,956,000.00 Estimatedliabilities 4,479,452,756.39 4,328,997,725.36 Deferredincome 50,000,000.00 50,000,000.00 Deferredincometaxliabilities 439,720,215.25 492,134,238.59 Othernon-currentliabilities 833,423,087.32 1,019,414,105.50 Totalnon-currentliabilities 8,547,717,414.92 8,595,086,528.57 Totalliabilities 68,901,206,036.61 71,805,616,192.81 Owner'sequity: Sharecapital 9,912,905,548.00 9,914,086,060.00 Capitalreserve 6,947,741,893.07 6,949,972,483.48 Debit:TreasuryStock 790,291,729.28 3,395,829.33 OtherComprehensiveIncome 158,816,051.27 158,816,051.27 Specialreserves 85,639,548.86 65,367,525.26 Surplusreserve 4,957,043,030.00 4,957,043,030.00 Undistributedprofits 49,447,146,204.15 48,548,118,724.39 TotalOwners'Equity 70,719,000,546.07 70,590,008,045.07 TotalLiabilitiesandOwners'Equity 139,620,206,582.68 142,395,624,237.88 3. Consolidated Income Statement Unit:RMB Item Firsthalfof2026 Firsthalfof2025 I.TotalOperatingRevenue 65,634,329,742.16 72,691,310,387.08 Less:Operatingcost 56,117,100,062.15 62,093,645,283.41 TaxesandSurcharges 1,066,853,006.30 1,668,033,001.81 Sellingexpenses 3,860,975,148.50 4,361,492,467.23 Administrativeexpenses 1,633,507,400.67 2,228,013,321.96 R&Dexpenses 3,154,733,904.46 3,283,657,283.48 Financialexpenses 69,130,695.55 -1,956,937,280.34 Amongthem:interestexpenses. 54,665,257.01 38,065,837.11 Interestincome 256,185,892.36 657,365,732.49 Add:OtherIncome 668,609,055.54 1,006,136,643.63 Investmentincome(lossestobefilledinwitha"—"sign) 188,984,988.77 115,023,949.01 Amongwhich:investmentincomefromassociatesand jointventures. -89,741,790.27 55,363,593.69 Gain(loss)onchangesinfairvalue(tobefilledinwitha "—"sign) 40,410,445.13 6,513,157.75
Page 51
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 50 Creditimpairmentlosses(lossestobefilledinwitha"—") 7,009,303.76 -3,271,416.06 Impairmentlossonassets(lossestobefilledinwitha"—" sign) -463,135,760.68 -49,093,178.82 Gain(loss)ondisposalofassets(tobefilledinwithadash) 75,172,176.38 17,005,465.70 II.OperatingProfit(Losstobeindicatedwitha"—") 249,079,733.43 2,105,720,930.74 Add:Non-operatingincome. 45,557,329.01 90,081,260.28 Less:Non-operatingexpenses 35,733,896.93 26,831,412.99 III.TotalProfit(TotalLossshallbefilledinwitha"—"sign) 258,903,165.51 2,168,970,778.03 Less:Incometaxexpense 78,188,897.89 376,316,886.76 IV.Netprofit(netlossshallbeindicatedwitha"—"sign) 180,714,267.62 1,792,653,891.27 (I)ClassificationbyOperationalContinuity 1.Netprofitfromcontinuingoperations(netlossshallbe indicatedwitha"—") 180,714,267.62 1,792,653,891.27 2.Netprofit(ornetloss,indicatedbyadash)fromdiscontinued operations. (II)ClassificationbyOwnershipAttribution 1.Netprofitattributabletoshareholdersoftheparentcompany (netlossshallbeindicatedwitha"—") 817,395,511.85 2,291,211,254.67 2.Profitorlossattributabletonon-controllinginterests(netloss shallbeindicatedwitha"—") -636,681,244.23 -498,557,363.40 V.Netothercomprehensiveincomeaftertax 107,974,903.91 -76,680,556.34 Netothercomprehensiveincomeattributabletoownersofthe parentcompanyaftertax 107,974,903.91 -76,680,556.34 Othercomprehensiveincomethatshallnotbereclassifiedto profitorloss -2,386,300.06 1.Remeasurethechangesinthedefinedbenefitplan. Othercomprehensiveincomethatcannotbereclassifiedto profitorlossundertheequitymethod. -2,386,300.06 3.Changesinfairvalueofotherequityinstrument investments 4.Fairvaluechangesduetotheenterprise'sowncreditrisk 5.Others (II)Othercomprehensiveincometobereclassifiedtoprofitor loss 107,974,903.91 -74,294,256.28 Othercomprehensiveincomethatmaybereclassifiedto profitorlossundertheequitymethod. -17,971,991.02 997,343.14 2.Fairvaluechangesofotherdebtinvestments Theamountoffinancialassetreclassificationrecognizedin othercomprehensiveincome. 4.Creditimpairmentprovisionforotherdebtinvestments 5.Cashflowhedgereserve 6.Exchangedifferencesarisingfromthetranslationof foreigncurrencyfinancialstatements 125,946,894.93 -75,291,599.42 7.Others Netamountofothercomprehensiveincomeattributableto non-controllinginterestsaftertax VI.TotalComprehensiveIncome 288,689,171.53 1,715,973,334.93 Totalcomprehensiveincomeattributabletoownersoftheparent company 925,370,415.76 2,214,530,698.33
Page 52
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 51 Totalcomprehensiveincomeattributabletonon-controlling interests -636,681,244.23 -498,557,363.40 7.Earningspershare: (I)BasicEarningsPerShare 0.08 0.23 (II)DilutedEarningsPerShare 0.08 0.23 LegalRepresentative:ZhuHuarong;PersoninChargeofAccountingWork:NiErke;HeadofAccountingInstitution:ShiHaifeng 4. Consolidated Statement of Profit or Loss of the Parent Company Unit:RMB Item Firsthalfof2026 Firsthalfof2025 I.OperatingRevenue 44,137,067,957.70 49,992,247,432.42 Less:Operatingcost 39,264,261,495.20 44,625,789,120.71 TaxesandSurcharges 499,451,917.99 866,341,628.05 Sellingexpenses 1,230,713,505.36 1,690,914,310.74 Administrativeexpenses 957,853,531.03 1,387,752,217.18 R&Dexpenses 1,694,684,891.15 1,999,015,349.48 Financialexpenses -135,199,698.88 -422,841,778.36 Amongthem:interestexpenses 36,673,822.21 25,210,363.07 Interestincome 177,090,758.73 452,426,187.70 Add:OtherIncome 314,489,732.11 824,860,792.31 Investmentincome(lossestobefilledinwitha"—"sign) 1,129,217,803.14 476,704,368.84 Amongwhich:investmentincomefromassociatesand jointventures. -164,640,970.82 23,105,164.21 Gain(loss)onchangesinfairvalue(tobefilledinwitha "—"sign) 6,513,157.75 Creditimpairmentlosses(lossestobefilledinwitha "—"sign) -394,385.83 -2,587,503.79 Impairmentlossonassets(lossestobefilledinwitha "—"sign) -89,132,191.20 -42,206,783.01 Gain(loss)ondisposalofassets(tobefilledinwitha "—"sign) -6,428,272.61 9,872,828.04 II.OperatingProfit(Losstobeindicatedwitha"—"sign) 1,973,055,001.46 1,118,433,444.76 Add:Non-operatingincome. 22,327,492.47 51,980,901.09 Less:Non-operatingexpenses 4,486,386.32 14,545,459.64 III.TotalProfit(TotalLossshallbeindicatedwitha"—") 1,990,896,107.61 1,155,868,886.21 Less:Incometaxexpense -46,740,260.64 68,810,215.77 IV.Netprofit(netlossshallbeindicatedwitha"—"sign) 2,037,636,368.25 1,087,058,670.44 (I)Netprofitfromcontinuingoperations(netlosstobefilled inwitha"—") 2,037,636,368.25 1,087,058,670.44 (II)Netprofit(ornetloss,indicatedbyadash)from discontinuedoperations V.Netothercomprehensiveincomeaftertax -2,894,301.11 VI.TotalComprehensiveIncome 2,037,636,368.25 1,084,164,369.33
Page 53
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 52 5. Consolidated Statement of Cash Flows Unit:RMB Item Firsthalfof2026 Firsthalfof2025 I.Cashflowsfromoperatingactivities: Cashreceivedfromthesaleofgoodsandprovisionofservices 76,905,950,617.48 83,637,749,837.86 Rebatesoftaxesandsurchargesreceived 2,162,275,633.98 1,940,550,767.15 Cashreceivedfromotheroperatingactivities 1,147,910,471.30 1,844,260,721.48 Totalcashinflowsfromoperatingactivities 80,216,136,722.76 87,422,561,326.49 Cashpaidforthepurchaseofgoodsandacceptanceofservices 72,401,966,814.52 78,918,787,742.28 Cashpaidtoandonbehalfofemployees 7,931,445,022.97 6,106,774,683.42 Varioustaxesandfeespaid 3,849,409,177.87 4,503,099,289.23 Cashpaymentsforotheritemsrelatedtooperatingactivities 7,446,767,975.77 6,501,096,401.83 BusinessoperationsTotalcashoutflows 91,629,588,991.13 96,029,758,116.76 Netcashflowfromoperatingactivities -11,413,452,268.37 -8,607,196,790.27 II.Cashflowsfrominvestingactivities: Cashreceivedfromtherecoveryofinvestments 8,107,808.95 340,000.00 Cashreceivedfrominvestmentincome 18,172,110.38 42,307,638.70 Netcashproceedsfromthedisposaloffixedassets,intangible assets,andotherlong-termassets. 402,980,259.89 596,996,689.13 Cashreceivedfromotherinvestingactivities 1,674,861,861.52 50,975,988.18 Totalcashinflowsfrominvestingactivities 2,104,122,040.74 690,620,316.01 Cashpaidfortheacquisition,construction,andimprovementof fixedassets,intangibleassets,andotherlong-termassets. 2,093,637,403.55 2,111,957,700.52 Cashpaidforinvestments 324,969,968.24 1,604,723,740.46 Cashpaidforotherinvestingactivities 1,825,771,500.00 Totalcashoutflowsfrominvestingactivities 4,244,378,871.79 3,716,681,440.98 Netcashflowfrominvestingactivities -2,140,256,831.05 -3,026,061,124.97 III.Cashflowsfromfinancingactivities: Cashreceivedfrominvestments 40,000,000.00 62,000,000.00 Cashproceedsfromborrowings 73,205,688.14 41,439,662.00 Cashreceivedfromotherfinancingactivities 322,309,837.79 280,715,982.94 Totalcashinflowsfromfinancingactivities 435,515,525.93 384,155,644.94 Cashpaidforrepaymentofdebt 536,000,000.00 66,000,000.00 Cashpaidfordividends,profits,orinterestpayments 10,984,772.50 7,840,786.59 Cashpaidforotherfinancingactivities 820,636,309.25 53,170,214.12 Totalcashoutflowsfromfinancingactivities 1,367,621,081.75 127,011,000.71 Netcashflowfromfinancingactivities -932,105,555.82 257,144,644.23 IV.ImpactofExchangeRateFluctuationsonCashandCash Equivalents -28,486,901.68 287,726,733.50 V.Netincreaseincashandcashequivalents -14,514,301,556.92 -11,088,386,537.51 Add:Beginningbalanceofcashandcashequivalents. 52,993,171,152.75 63,274,376,513.00
Page 54
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 53 VI.EndingBalanceofCashandCashEquivalents 38,478,869,595.83 52,185,989,975.49 6. Cash flow statement Unit:RMB Item Firsthalfof2026 Firsthalfof2025 I.Cashflowsfromoperatingactivities: Cashreceivedfromthesaleofgoodsandprovisionofservices 45,237,628,634.57 52,673,723,414.17 Rebatesoftaxesandsurchargesreceived 175,362.93 80,464,734.28 Cashreceivedfromotheroperatingactivities 553,483,072.44 968,553,469.71 Totalcashinflowsfromoperatingactivities 45,791,287,069.94 53,722,741,618.16 Cashpaidforthepurchaseofgoodsandacceptanceofservices 40,228,610,231.86 51,269,802,561.93 Cashpaidtoandonbehalfofemployees 4,744,764,993.77 3,612,840,778.60 Varioustaxesandfeespaid 1,647,890,020.68 1,504,405,933.42 Cashpaymentsforotheritemsrelatedtooperatingactivities 4,019,851,582.05 4,907,709,472.80 BusinessoperationsTotalcashoutflows 50,641,116,828.36 61,294,758,746.75 Netcashflowfromoperatingactivities -4,849,829,758.42 -7,572,017,128.59 II.Cashflowsfrominvestingactivities: Cashreceivedfromtherecoveryofinvestments 8,107,808.95 Cashreceivedfrominvestmentincome 1,203,727,910.38 418,072,106.70 Netcashproceedsfromthedisposaloffixedassets,intangibleassets, andotherlong-termassets. 133,389,149.72 154,051,790.41 Cashreceivedfromotherinvestingactivities Totalcashinflowsfrominvestingactivities 1,345,224,869.05 572,123,897.11 Cashpaidfortheacquisitionoffixedassets,intangibleassets,and otherlong-termassets 1,424,349,904.43 1,214,891,938.38 Cashpaidforinvestments 327,000,001.00 1,890,723,740.46 Cashpaidforotherinvestingactivities Totalcashoutflowsfrominvestingactivities 1,751,349,905.43 3,105,615,678.84 Netcashflowfrominvestingactivities -406,125,036.38 -2,533,491,781.73 3.Cashflowsfromfinancingactivities: Cashreceivedfrominvestments Cashproceedsfromborrowings 41,502,388.14 Cashreceivedfromotherfinancingactivities Totalcashinflowsfromfinancingactivities 41,502,388.14 Cashpaidforrepaymentofdebt 36,000,000.00 36,000,000.00 Cashpaidfordividends,profits,orinterestpayments 10,091,181.14 7,357,000.00 Cashpaidforotherfinancingactivities 816,171,547.45 33,309,556.36 Totalcashoutflowsfromfinancingactivities 862,262,728.59 76,666,556.36 Netcashflowfromfinancingactivities -820,760,340.45 -76,666,556.36 IV.ImpactofExchangeRateFluctuationsonCashandCashEquivalents 2,423,550.04 V.Netincreaseincashandcashequivalents -6,074,291,585.21 -10,182,175,466.68
Page 55
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 54 Add:Beginningbalanceofcashandcashequivalents. 22,291,778,931.83 34,681,359,143.17 VI.BalanceofCashandCashEquivalentsattheEndofthePeriod 16,217,487,346.62 24,499,183,676.49
Page 56
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 55 7. Consolidated Statement of Changes in Equity Amountforthisperiod Unit:RMB Item Firsthalfof2026 Equityattributabletoownersoftheparentcompany Non-controlling interest TotalOwners'Equity Sharecapital CapitalReserve Debit:Treasury Stock Other Comprehensive Income Specialreserves Surplusreserve Undistributedprofits I.Balanceattheendoftheprevious year 9,914,086,060.00 8,980,708,730.02 3,395,829.33 -134,796,483.22 119,363,825.70 4,957,043,030.00 53,503,168,524.85 4,648,549,150.65 81,984,727,008.67 II.Openingbalanceforthecurrentyear 9,914,086,060.00 8,980,708,730.02 3,395,829.33 -134,796,483.22 119,363,825.70 4,957,043,030.00 53,503,168,524.85 4,648,549,150.65 81,984,727,008.67 III.Amountofincreaseordecreasein currentperiod(Decreaseisindicated with"-") -1,180,512.00 -335,047,644.90 786,895,899.95 107,974,903.91 37,063,180.15 -321,213,376.64 -987,254,821.14 -2,286,554,170.57 (I)Totalcomprehensiveincome 107,974,903.91 817,395,511.85 -636,681,244.23 288,689,171.53 (II)Capitalinvestedandreducedby owners -1,180,512.00 -335,047,644.90 786,895,899.95 -365,178,955.13 -1,488,303,011.98 1.Commonsharesinvestedbyowners 40,000,000.00 40,000,000.00 2.Amountofshare-basedpayment includedinowner'sequity -2,230,590.41 -2,230,590.41 3.Other -1,180,512.00 -332,817,054.49 786,895,899.95 -405,178,955.13 -1,526,072,421.57 (III)ProfitDistribution -1,138,608,888.49 -1,138,608,888.49 1.Distributionstoowners(or shareholders) -1,138,608,888.49 -1,138,608,888.49 (IV)Internaltransferswithinowners' equity (5)SpecialReserves 37,063,180.15 14,605,378.22 51,668,558.37 1.Currentperiodextraction 54,912,184.73 16,029,783.42 70,941,968.15 2.Usageforthisperiod. -17,849,004.58 -1,424,405.20 -19,273,409.78 (VI)Others. IV.EndingBalancefortheCurrent Period 9,912,905,548.00 8,645,661,085.12 790,291,729.28 -26,821,579.31 156,427,005.85 4,957,043,030.00 53,181,955,148.21 3,661,294,329.51 79,698,172,838.10
Page 57
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 56 Previousyear'samount Unit:RMB Item Firsthalfof2025 Equityattributabletoownersoftheparentcompany Non-controlling interests Totalowner'sequity Sharecapital Capitalreserve Less:Treasuryshares Othercomprehensive income Specialreserve Surplusreserve Undistributedprofit I.Closingbalanceofpreviousyear 9,914,086,060.00 8,925,798,850.14 169,261,662.73 7,523,358.77 95,013,488.38 4,957,043,030.00 52,846,021,500.43 2,504,374,617.11 79,080,599,242.10 II.Balanceatthebeginningofthe currentyear 9,914,086,060.00 8,925,798,850.14 169,261,662.73 7,523,358.77 95,013,488.38 4,957,043,030.00 52,846,021,500.43 2,504,374,617.11 79,080,599,242.10 III.Amountofincreaseordecreasein currentperiod(Decreaseisindicatedwith "-") 30,568,843.52 -112,935,815.55 -76,680,556.34 30,729,494.34 -631,353,698.15 -431,719,070.68 -965,519,171.76 (I)Totalcomprehensiveincome -76,680,556.34 2,291,211,254.67 -498,557,363.40 1,715,973,334.93 (II)Capitalinvestedandreducedby owners 30,568,843.52 -112,935,815.55 62,000,000.00 205,504,659.07 1.Commonsharesinvestedbyowners 62,000,000.00 62,000,000.00 2.Amountofshare-basedpayment includedinowner'sequity 15,696,797.33 -112,935,815.55 128,632,612.88 3.Other 14,872,046.19 14,872,046.19 (III)Profitdistribution -2,922,564,952.82 -2,922,564,952.82 1.Distributiontoowners(or shareholders) -2,922,564,952.82 -2,922,564,952.82 (IV)Internalcarry-forwardofowner's equity (V)Specialreserve 30,729,494.34 4,838,292.72 35,567,787.06 1.Currentwithdrawal 58,903,145.28 7,514,745.10 66,417,890.38 2.Usedinthisperiod -28,173,650.94 -2,676,452.38 -30,850,103.32 (VI)Others IV.EndingBalancefortheCurrent Period 9,914,086,060.00 8,956,367,693.66 56,325,847.18 -69,157,197.57 125,742,982.72 4,957,043,030.00 52,214,667,802.28 2,072,655,546.43 78,115,080,070.34
Page 58
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 57 8. Statement of Changes in Equity Attributable to the Parent Company Amountforthisperiod Unit:RMB Item Firsthalfof2026 Sharecapital CapitalReserve Debit:Treasury Stock Other Comprehensive Income Specialreserves Surplusreserve Undistributedprofits TotalOwners'Equity I.Balanceattheendoftheprevious year 9,914,086,060.00 6,949,972,483.48 3,395,829.33 158,816,051.27 65,367,525.26 4,957,043,030.00 48,548,118,724.39 70,590,008,045.07 II.Openingbalanceforthecurrent year 9,914,086,060.00 6,949,972,483.48 3,395,829.33 158,816,051.27 65,367,525.26 4,957,043,030.00 48,548,118,724.39 70,590,008,045.07 III.AmountsofChangesinthe CurrentPeriod(Decreasesshallbe indicatedwitha"—"sign) -1,180,512.00 -2,230,590.41 786,895,899.95 899,027,479.76 128,992,501.00 (I)Totalcomprehensiveincome 2,037,636,368.25 2,037,636,368.25 (II)Capitalcontributedbyownersand capitalreductions -1,180,512.00 -2,230,590.41 786,895,899.95 -790,307,002.36 Theamountofshare-basedpayment recognizedinowners'equity. -2,230,590.41 -2,230,590.41 2.Others -1,180,512.00 786,895,899.95 -788,076,411.95 (III)ProfitDistribution -1,138,608,888.49 -1,138,608,888.49 1.Distributionstoowners(or shareholders) -1,138,608,888.49 -1,138,608,888.49 (IV)Internaltransferswithinowners' equity (5)SpecialReserves 20,272,023.60 20,272,023.60 1.Currentwithdrawal 31,580,750.76 31,580,750.76 2.Usedinthis period -11,308,727.16 -11,308,727.16 (VI)Other IV.Closingbalanceofthecurrent period 9,912,905,548.00 6,947,741,893.07 790,291,729.28 158,816,051.27 85,639,548.86 4,957,043,030.00 49,447,146,204.15 70,719,000,546.07
Page 59
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 58 Amountoflastyear Unit:RMB Item Semi-annual2025 Sharecapital Capitalreserve Less:Treasuryshares Other comprehensive income Specialreserve Surplusreserve Undistributedprofit Totalowner's equity I.Closingbalanceofpreviousyear 9,914,086,060.00 8,353,032,903.95 169,261,662.73 162,659,055.80 44,805,848.15 4,957,043,030.00 47,158,746,846.13 70,421,112,081.30 II.Balance atthebeginningofthe currentyear 9,914,086,060.00 8,353,032,903.95 169,261,662.73 162,659,055.80 44,805,848.15 4,957,043,030.00 47,158,746,846.13 70,421,112,081.30 III.Amountofincrease ordecreasein currentperiod(Decreaseisindicated with"-") 30,568,843.52 -112,935,815.55 -2,894,301.11 18,660,348.93 -1,835,506,282.38 -1,676,235,575.49 (I)Totalcomprehensiveincome -2,894,301.11 1,087,058,670.44 1,084,164,369.33 (II)Capitalinvestedandreducedby owners 30,568,843.52 -112,935,815.55 143,504,659.07 1.Amountofshare-basedpayment includedinowner'sequity 15,696,797.33 -112,935,815.55 128,632,612.88 2.Other 14,872,046.19 14,872,046.19 (III)Profitdistribution -2,922,564,952.82 -2,922,564,952.82 1.Distributiontoowners(or shareholders) -2,922,564,952.82 -2,922,564,952.82 (IV)Internaltransferswithinowners' equity (5)SpecialReserves 18,660,348.93 18,660,348.93 1.Thisperiod's extraction. 33,871,629.18 33,871,629.18 2.Usageforthisperiod. -15,211,280.25 -15,211,280.25 (VI)Others IV.EndingBalancefortheCurrent Period 9,914,086,060.00 8,383,601,747.47 56,325,847.18 159,764,754.69 63,466,197.08 4,957,043,030.00 45,323,240,563.75 68,744,876,505.81
Page 60
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 59 III. Basic Company Information Chongqing ChanganAutomobile Co., Ltd. (hereinafter referred to as the "Company" or "our Company")isajoint-stockcompanyregisteredinChongqinginOctober1996.Itwaslistedonthe Shenzhen Stock Exchange in June 1997. As of June 30, 2026, the Company's total issued share capital amounted to 9,912,905,548 shares. Registered Address: No. 260 Xinjian East Road, Jiangbei District, Chongqing, China; Office Address: No. 61 Dongshengmen Road, Jiangbei District,Chongqing,China,FinancialCityNo.2,BuildingT2. The Company's principal actual business activities include the manufacturing and sales of automobiles(includingsedans),automobileengineseriesproducts,andsupportingcomponents. The Company's parent company is ChenzhiAutomotiveTechnology Group Co., Ltd., and its ultimatecontrollingpartyisChinaChanganAutomobileGroupCo.,Ltd. IV. Basis for Preparation of Financial Statements 1.Preparation Basis These financial statements have been prepared in accordance with the Basic Standard of EnterpriseAccountingStandardsandvariousspecificaccountingstandards,applicationguidelines for enterprise accounting standards, interpretations of enterprise accounting standards, and other relevantregulationspromulgatedbytheMinistryofFinance(hereinaftercollectivelyreferredtoas "Enterprise Accounting Standards"), as well as the relevant provisions of Rule No. 15 of the "Reporting Rules for Information Disclosure of Companies Offering Securities to the Public" issuedbytheChinaSecuritiesRegulatoryCommission. 2.Going concern Thesefinancialstatementshavebeenpreparedonagoingconcernbasis. V. Significant Accounting Policies and Accounting Estimates 1. Statement on Compliance with Enterprise Accounting Standards This setoffinancialstatements hasbeenpreparedincompliancewiththe requirements of theAccounting Standards for Enterprises promulgated by the Ministry of Finance of the People's Republic of China, andtruly and completely reflects the consolidatedand parent company financial position of the Company as of June 30, 2026, as well as the consolidated and parent company operating results and cash flows for the period from January1toJune30,2026. 2. Accounting period ThefiscalyearrunsfromJanuary1toDecember31oftheGregoriancalendar. 3. Operating cycle Thecompany'soperatingcycleis12months. 4. Functional currency ThefunctionalcurrencyoftheCompanyandthecurrencyusedinthepreparationofthese financial statements are both the Renminbi. Unless otherwise specified, all amounts are expressed in Renminbi (RMB) RMB. The subsidiaries, joint ventures, and associates of the Company determine their functional currencies based on the primary economic environments in which they operate, and their financial statements are translated into RMBwhenpreparingconsolidatedfinancialreports.
Page 61
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 60 5. Accounting treatment methods for business combinations under common control and those not under common control. Business combinations under common control: Assets and liabilities acquired by the combining party in the business combination (including goodwill arising from the acquisition of the combined party by the ultimate controlling party) are measured based on the carrying amounts of the combined party's assets and liabilities in the consolidated financial statements of the ultimate controlling party as of the combination date. The differencebetweenthebookvalueofnetassetsacquiredinthemergerandthebookvalue of the merger consideration paid (orthe total par value of sharesissued) shall beadjusted against the share premium in capital reserve; if the share premium in capital reserve is insufficienttooffsetthedifference,theretainedearningsshallbeadjusted. Business combinations not under common control: The cost of combination is the fair value of assets paid, liabilities incurred or assumed, and equity securities issued by the acquirerontheacquisitiondatetoobtaincontrolovertheacquiree.Theexcessofthecost of the combination over the acquirer's share of the fair value of the acquiree's identifiable net assets is recognized as goodwill; the excess of the acquirer's share of the fair value of the acquiree's identifiable net assets over the cost of the combination is recognized in profit or loss for the current period. In a business combination, the identifiable assets, liabilities, and contingent liabilities of the acquiree that meet the recognition criteria are measuredatfairvalueontheacquisitiondate. Directly attributable costs incurred for a business combination are recognized in profit or loss in the period in which they are incurred; transaction costs incurredfor issuing equity ordebtsecuritiesforabusinesscombinationareincludedintheinitialcarryingamountof theequityordebtsecurities. 6. Criteria for determining control and the method for preparing consolidated financial statements (1) Criteria for judging control The scope of consolidation for the consolidated financial statements is determined based on control and includes the Company and all of its subsidiaries. Control refers to the situation where an entity has power over an investee, is exposed, or has rights, to variable returns from its involvement with the investee, and has the abilitytouseitspowerovertheinvesteetoaffecttheamountoftheentity'sreturns. (2) Merge program The Company regards the entire corporate group as a single accounting entity and prepares consolidated financial statements in accordance with uniform accounting policies to reflect the group's overall financial position, results of operations, and cash flows. The effects of intragroup transactions between the Company and its subsidiaries, and among the subsidiaries themselves, are eliminated. In the event thatinternaltransactionsindicateanimpairmentlossontherelevantassets,thefull amount of such loss shall be recognized. If the accounting policies or accounting periods adopted by a subsidiary differ from those of the Company, necessary adjustments shall be made to align them with the Company's accounting policies andaccountingperiodswhenpreparingtheconsolidatedfinancialstatements. The share of the subsidiary's equity, current net profit or loss, and current total comprehensive income attributable to non-controlling interests are presented separatelyundertheequityChapteroftheconsolidatedbalancesheet,underthenet profit line item of the consolidated income statement, and under the total comprehensive incomelineitem,respectively.Thecurrentperiodlossbornebythe non-controlling interests of a subsidiary that exceeds the non-controlling interests' share of the subsidiary's opening equity is offset against the non-controlling interests. (1)Increasethenumberofsubsidiariesorbusinessunits. During the reporting period, for subsidiaries or businesses acquired through business combinations under common control, their operating results and cash flows from the beginning of the period of consolidation to the end of the reporting
Page 62
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 61 period are included in the consolidated financial statements, and the opening balances of the consolidated financial statements and relevant items in the comparative statements are adjusted accordingly, as if the consolidated reporting entity had existed since the date when the ultimate controlling party obtained control. Where control over an investee under common control is achieved due to additional investments or other reasons, the recognized gains or losses, other comprehensive income, and other changes in net assets related to equity interests heldpriortoobtainingcontroloverthecombinedpartyfromthelaterofthedateof the original equity acquisition or the date when the combining party and the combined party came under common control, up to the date of the combination, shall be offset against the opening retained earnings for the comparative reporting periodorcurrentperiodprofitorloss,respectively. During the reporting period, for subsidiaries or businesses acquired through businesscombinations notundercommon control,the fairvalues ofall identifiable assets, liabilities, and contingent liabilities determined as of the acquisition date shall serve as the basis. Included in the consolidated financial statements from the dateofacquisition. Where control over an investee not under common control is achieved due to additionalinvestmentorotherreasons,theequityinterestintheacquireeheldprior to the acquisition date shall be remeasured at its fair value on the acquisition date, and the difference between the fair value and its carrying amount shall be recognized as investment income for the current period. Other comprehensive income previously recognized under the equity method that is subsequently reclassifiable to profit or loss, as well as other changes in equity accounted for under the equity method, related to the equity interest in the acquiree held prior to the acquisition date shall be reclassified to investment income for the current periodtowhichtheacquisitiondatebelongs. (2)Disposalofsubsidiaries ①Generalprocessingmethods When control over an investee is lost due to the disposal of a portion of equity interests or other reasons, the remaining equity interest in the investee after the disposal shall be remeasured at its fair value on the date control is lost. The differencebetween the sumof the consideration received for the disposal of equity interests and the fair value of the remaining equity interests, and the sum of the share of the net assets of the original subsidiary calculated continuously from the acquisitiondateorthedateofcombination basedontheoriginal shareholdingratio andgoodwill, shallberecognizedas investmentincome inthecurrentperiodwhen control is lost. Other comprehensive income that is subsequently reclassified into profit or loss related to equity investments in existing subsidiaries, as well as other changes in owners' equity accounted for under the equity method, are reclassified tocurrentinvestmentincomeuponlossofcontrol. ②Step-by-stepdisposalofsubsidiaries When an investment in a subsidiary is disposed of in stages through multiple transactions until control is lost, the terms, conditions, and economic implications of the various transactions regarding the disposal of the investment in the subsidiary typically indicate that such multiple transactions constitute a single packagearrangementiftheymeetoneormoreofthefollowingcircumstances: i. These transactions were concluded simultaneously or with due regard to their mutualinterdependence. II. Only when these transactions are integrated can a complete commercial outcomebeachieved; ⅲ. The occurrence of a transaction depends on the occurrence of at least one other transaction. IV. A transaction is uneconomical when considered in isolation but becomes economicalwhenevaluatedinconjunctionwithothertransactions. Where multiple transactions constitute a single package, they shall be accounted
Page 63
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 62 for as a single transaction involving the disposal of a subsidiary and the loss of control; prior to the loss of control, any difference between the disposal proceeds for each transaction and the corresponding share of the net assets of the subsidiary shall be recognized as other comprehensive income in the consolidated financial statementsandtransferredtoprofitorlossintheperiodwhencontrolislost. If the transactions do not constitute a package deal, the equity investment in the subsidiaryshall beaccountedfor priorto thelossof controlinaccordancewith the method for partial disposal of an equity investment in a subsidiary without loss of control, and upon the loss of control, it shall be accounted for in accordance with thegeneralmethodfordisposalofasubsidiary. (3)Acquisitionofminorityequityinterestsinasubsidiary. The difference between the long-term equity investment newly acquired through the purchase of a minority interest and the share of the net assets of the subsidiary calculated based on the incremental shareholding percentage, which has been continuously calculated from the acquisition date or the merger date, shall be used toadjustthesharepremiuminthecapitalreserveintheconsolidatedbalancesheet; if the share premium in the capital reserve is insufficient to offset the difference, theretainedearningsshallbeadjustedaccordingly. (4)Partialdisposalofequityinvestmentinasubsidiarywithoutlossofcontrol The difference between the disposal proceeds and the share of the net assets of the subsidiary calculated continuously from the acquisition date or the date of combination that corresponds to the long-term equity investment disposed of shall be used to adjust the share premium within capital reserve in the consolidated balance sheet; if the share premium within capital reserve is insufficient to offset thedifference,retainedearningsshallbeadjusted. 7. Criteria for the determination of cash and cash equivalents. Cash refers to the company's cash on hand and demand deposits that are available for immediate payment. Cash equivalents refer to investments held by the Company that are short-term, highly liquid,readilyconvertible toknown amounts ofcash,andsubjectto an insignificantriskofchangesinvalue. 8. Foreign currency transactions and translation of foreign currency financial statements (1) Foreign currency transactions Foreign currency transactions are recorded in RMB by translating the foreign currencyamountsusingthespotexchangerateprevailingonthetransactiondate. At the balance sheet date, the balances of foreign currency monetary items are translated at the spot exchange rate prevailing on that date, and the resulting exchange differences, except for those arising from foreign currency borrowings specifically related to the acquisition or construction of qualifying assets that are capitalized in accordance with the principles for capitalization of borrowing costs, arerecognizedinprofitorlossforthecurrentperiod. (2) Translation of Foreign Currency Financial Statements Assets and liabilities in the balance sheet are translated using the spot exchange rate on the balance sheet date, while equity items, except for "retained earnings," are translated using the spot exchange rate at the time of occurrence. Revenue and expense items in the income statement are translated using the spot exchange rate onthedateofthetransaction. Upon disposal of a foreign operation, the exchange differences arising from the translation of the foreign entity's financial statements, which are included in other comprehensive income under equity, shall be reclassified from equity to profit or lossforthecurrentperiod. 9. Financial instruments The Company recognizes a financial asset, a financial liability, or an equity instrument whenitbecomesapartytotheprovisionsofafinancialinstrumentcontract. (1) Classification of financial instruments
Page 64
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 63 Based on the Company's business model for managing financial assets and the contractual cash flow characteristics of the financial assets, financial assets are classified at initial recognition as financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financialassetsmeasuredatfairvaluethroughprofitorloss. The Company shall classify financial assets as measured at amortized cost only if they meet both of the following conditions and are not designated as financial assetsatfairvaluethroughprofitorloss: Thebusinessmodelistoholdcontractualcashflows. The contractual cash flows are solely payments of principal and interest on the principalamountoutstanding. The Company shall classify financial assets as financial assets measured at fair value through other comprehensive income (debt instruments) if they meet both of the following conditions andare notdesignated as financial assets measured at fair valuethroughprofitorloss: Thebusinessmodelistoholdthefinancialassetinordertocollectcontractualcash flowsandtosellthefinancialasset. The contractual cash flows are solely payments of principal and interest on the principalamountoutstanding. For equity instrument investments that are not held for trading, the Company may irrevocablydesignatethematinitialrecognitionasfinancialassetsmeasuredatfair value through other comprehensive income (equity instruments). This designation shall be made on an instrument-by-instrument basis, and the relevant investments mustmeetthedefinitionofanequityinstrumentfromtheissuer'sperspective. Except for financial assets measured at amortized cost and those measured at fair value through other comprehensive income, the Company classifies all remaining financialassetsasfinancialassetsmeasuredatfairvaluethroughprofitorloss. Financial liabilities are classified at initial recognition as either financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost. (2) Basis for recognition and measurement methods of financial instruments Financialassetsmeasuredatamortizedcost Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables, and debt investments, which are initially recognized at fair value with related transaction costs included in the initial carrying amount; however, accounts receivable that do not contain a significant financing component, as well as those for which the Company has decided not to consider a financing component of one year or less, are initially recognizedatthetransactionpricespecifiedinthecontract. Interest calculated using the effective interest method during the holding period is recognizedinthecurrentperiod'sprofitorloss. Upon recovery or disposal, the difference between the proceeds received and the carrying amount of the financial asset shall be recognized in the current period's profitorloss. (2) Financial assets measured at fair value with changes recognized in other comprehensiveincome(debtinstruments) Financial assets measured at fair value through other comprehensive income (debt instruments), including receivables financing and other debt investments, are initially recognized at fair value, with related transaction costs included in the initial carrying amount. Subsequent measurement of the financial asset is performed at fair value, with changes in fair value recognized in other comprehensive income, except for interest calculated using the effective interest method,impairmentlossesorgains,andexchangedifferences.
Page 65
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 64 Upon derecognition, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from other comprehensive income to profit orlossforthecurrentperiod. (3) Financial assets measured at fair value with changes recognized in other comprehensiveincome(equityinstruments) Financial assets measured at fair value through other comprehensive income (equityinstruments),includinginvestmentsinotherequityinstruments,areinitially recognized at fair value, with related transaction costs included in the initial carrying amount. The financial asset is subsequently measured at fair value, with changes in fair value recognized in other comprehensive income. Dividends receivedarerecognizedinthecurrentperiod'sprofitorloss. Upon derecognition, the cumulative gain or loss previously recognized in other comprehensiveincomeisreclassifiedfromothercomprehensiveincometoretained earnings. Financialassetsmeasuredatfairvaluewithchangesrecognizedinprofitorloss. Financial assets measured at fair value through profit or loss include trading financial assets, derivative financial assets, and other non-current financial assets, which are initially recognized at fair value with related transaction expenses charged to profit or loss for the current period. The financial asset is subsequently measuredatfairvalue,withchanges infairvaluerecognizedinthecurrentperiod's profitorloss. (5) Financial liabilities measured at fair value with changes recognized in profit or loss Financial liabilities measured at fair value through profit or loss include trading financial liabilities and derivative financial liabilities, which are initially recognized at fair value, with related transaction expenses charged to profit or loss in the current period. Such financial liabilities are subsequently measured at fair value,withchangesinfairvaluerecognizedinprofitorlossforthecurrentperiod. Upon derecognition, the difference between its carrying amount and the considerationpaidisrecognizedinprofitorlossforthecurrentperiod. (6)Financialliabilitiesmeasuredatamortizedcost Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables, which are initially recognized at fair value with relatedtransactioncostsincludedintheinitialcarryingamount. Interest calculated using the effective interest method during the holding period is recognizedinthecurrentperiod'sprofitorloss. Uponderecognition,thedifferencebetweentheconsiderationpaidandthecarrying amount of the financial liability shall be recognized in profit or loss for the current period. (3) Basis for derecognition of financial assets and recognition of transfers of financial assets, along with their measurement methods. The Company derecognizes a financial asset when one of the following conditions ismet: Thecontractualrighttocollectcashflowsfromafinancialassethasterminated; The financial asset has been transferred, and substantially all risks and rewards incidental to ownership of the financial asset have been transferred to the transferee. The financial asset has been transferred; although the Company has neither transferred nor retained substantially all the risks and rewards of ownership of the financialasset,ithasnotretainedcontroloverthefinancialasset.
Page 66
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 65 If the Company modifies or renegotiates a contract with the counterparty and such modificationconstitutesasubstantialmodification,theoriginalfinancialassetshall be derecognized, and a new financial asset shall be recognized in accordance with themodifiedterms. When a financial asset is transferred, if the transferor retains substantially all the risks and rewards incidental to the ownership of the financial asset, the financial assetshallnotbederecognized. When assessing whether the transfer of financial assets meets the aforementioned derecognition criteria for financial assets, the principle of substance over form is applied. The company classifies transfers of financial assets into full transfers and partial transfers. When the transfer of a financial asset in its entirety meets the conditions for derecognition, the difference between the following two amounts shall be recognizedinprofitorlossforthecurrentperiod: (1)Thecarryingamountofthefinancialassetstransferred. (2) The sum of the consideration received due to the transfer and the cumulative amount of fair value changes originally recognized directly in equity (applicable when the transferred financial asset is a debt instrument measured at fair value throughothercomprehensiveincome). When a partial transfer of a financial asset meets the criteria for derecognition, the carrying amount of the entire transferred financial asset shall be allocated between theportionderecognizedandtheportionretainedbasedontheirrelativefairvalues, andthedifferencebetweenthefollowingtwoamountsshallberecognizedinprofit orlossforthecurrentperiod: (1)Thecarryingamountofthederecognizedportion; (2) The sum of the consideration for the derecognized portion and the amount corresponding to the derecognized portion within the cumulative amount of fair value changes originally recognized directly in equity, applicable when the transferred financialasset is adebtinstrument measuredat fair value throughother comprehensiveincome. Ifthetransferoffinancialassetsdoesnotmeettheconditionsforderecognition,the financial assets shall continue to be recognized, and the consideration received shallberecognizedasafinancialliability. (4) Derecognition of financial liabilities A financial liability or a part thereof shall be derecognized when its present obligation has beendischarged, in wholeor in part, except whencashsettlement is madeusinganelectronicpaymentsystem. When afinancialliability (ora partthereof)is settled in cashthroughanelectronic payment system, the Company shall derecognize it only when the payment instructionhasbeeninitiatedandthefollowingconditionsaresimultaneouslymet: 1. The Company lacks the actual capability to recall, stop, or cancel payment instructions. 2. The Company lacks the actual capability to draw down the cash designated for settlementpursuanttopaymentinstructions; Settlementrisksassociatedwithelectronicpaymentsystemsarenotmaterial. If the Company enters into an agreement with creditors to replace an existing financial liability with a new financial liability, and the contractual terms of the newfinancialliabilityaresubstantiallydifferentfromthoseoftheexistingfinancial liability,theexistingfinancialliabilityshallbederecognized,andthenewfinancial liabilityshallberecognizedsimultaneously. If substantive modifications are made to all or part of the contractual terms of an existing financial liability, the existing financial liability or a portion thereof shall be derecognized, and the financial liability with the modified terms shall be
Page 67
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 66 recognizedasanewfinancialliability. When a financial liability is derecognized in whole or in part, the difference between the carrying amount of the derecognized financial liability and the considerationpaid(includingnon-cashassetstransferredornewfinancialliabilities assumed)isrecognizedinprofitorlossforthecurrentperiod. IftheCompanyrepurchasesaportionofafinancialliability,ontherepurchasedate it allocates the carrying amount of the entire financial liability between the portion that continues to be recognized and the portion that is derecognized based on their relative fair values. The difference between the carrying amount allocated to the derecognized portion and the consideration paid (including non-cash assets transferred or new financial liabilities assumed) is recognized in profit or loss for thecurrentperiod. (5) Methodology for determining the fair value of financial assets and financial liabilities. Financial instruments with an active market shall have their fair value determined based on quoted prices in that active market. For financial instruments lacking an active market, valuation techniques are employed to determine their fair value. In valuation, the Company employs valuation techniques that are appropriate under thecircumstancesandsupportedbysufficientavailabledataandotherinformation, selects input values consistent with the characteristics of the assets or liabilities considered by market participants in transactions for the relevant assets or liabilities, and prioritizes the use of relevant observable inputs. Unobservable inputs shall be used only when relevant observable inputs are not available or obtainingthemisnotpracticable. (6) Testing methodologies and accounting treatment methods for impairment of financial instruments. The Company applies impairment accounting based on expected credit losses to financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income (debt instruments), and financial guarantee contracts. The Company considers reasonable and supportable information regarding past events, current conditions, andforecasts of future economic conditions to calculate the probability-weighted amount of thepresent value of the difference betweenthe contractualcashflowsdueandtheexpectedcashflowstobereceived,weightedby theriskofdefault,therebyrecognizingexpectedcreditlosses. For receivables and contract assets arising from transactions governed by Accounting Standards for Business Enterprises No. 14 — Revenue, the Company consistently measures the allowance for expected credit losses at an amount equivalenttothelifetimeexpectedcreditlosses,regardlessofwhetherasignificant financingcomponentexists. For lease receivables arising from transactions governed byAccounting Standards forBusinessEnterprisesNo.21—Leases,theCompanyhaselectedtoconsistently measure the allowance for expected credit losses at an amount equivalent to the lifetimeexpectedcreditlosses. For other financial instruments, the Companyassesses changes in the credit risk of therelevantfinancialinstrumentssinceinitialrecognitionateachreportingdate. The Company determines the relative change in the probability of default of a financial instrument over its expected life by comparing the risk of default occurring on the reporting date with the risk of default occurring on the initial recognition date, in order to assess whether the credit risk of the financial instrument has increased significantly since initial recognition. Generally, the Company considers that the credit risk of a financial instrument has increased significantlyifitismorethan30dayspastdue,unlessthereisconvincingevidence to the contrary that the credit risk of the financial instrument has not increased
Page 68
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 67 significantlysinceinitialrecognition. The Company considers that the credit risk of a financial instrument has not increased significantly since initial recognition if the financial instrument has low creditriskatthereportingdate. If the credit risk of a financial instrument has increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to the lifetime expected credit losses; if the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to the expected credit losses over the next 12 months. The increase or reversal of the provision for losses thus formed shall be recognized as an impairment loss or gain in the current period's profit or loss. For financial assets measuredatfairvalue throughothercomprehensiveincome (debtinstruments),the allowance for credit losses is recognized in other comprehensive income, while impairment losses or gains are recognized in profit or loss, without reducing the carryingamountofthefinancialassetpresentedinthebalancesheet. 10. Inventory (1) Classification and Cost of Inventory Inventory is classified into: goods in transit, raw materials, consumable tools and spare parts, finished goods, work-in-process, goods dispatched, and materials entrustedforprocessing,amongothers. Inventories are initially measured at cost, which comprises purchase costs, conversion costs, and other costs incurred to bring the inventories to their present locationandcondition. (2) Inventory stocktaking system Adopttheperpetualinventorysystem. (3) Amortization methods for low-value consumables and packaging materials. (1) Low-value consumables are expensed in full upon issuance using the one-time write-offmethod. (2)Packagingmaterialsareexpensedinfullupontheirfirstuse. (4) Recognition criteria and accrual methods for inventory provision for decline in value Atthebalancesheetdate,inventoriesshallbemeasuredatthelowerofcostandnet realizable value. When the cost of inventory exceeds its net realizable value, an allowance for inventory obsolescence shall be recognized. Net realizable value refers totheestimated sellingpriceofinventory intheordinarycourseofbusiness, less the estimated costs to complete and the estimated costs of sale and related taxes. Finished goods, merchandise held for sale, and raw materials intended for sale are inventory items held directly for sale; their net realizable value is determined by deducting estimated selling expenses and related taxes from the estimated selling price in the ordinary course of business; for inventory items that require further processing, the net realizable value is determined by deducting the estimated costs to complete, estimated selling expenses, and related taxes from the estimated sellingpriceofthefinishedgoodstobeproducedintheordinarycourseofbusiness; for inventory held to fulfill sales or service contracts, the net realizable value is calculatedbasedonthecontractprice,andifthequantityofinventoryheldexceeds the quantity ordered under the sales contract, the net realizable value of the excess portioniscalculatedbasedonthegeneralsellingprice. After the provision for inventory decline in value has been accrued, if the factors that previously caused the reduction in inventory value have disappeared, resulting in the net realizable value of the inventory exceeding its carrying amount, the provision shall be reversed within the amount originally accrued, and the amount ofthereversalshallberecognizedinthecurrentperiod'sprofitorloss.
Page 69
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 68 11. Contract assets (1) Recognition methods and criteria for contract assets. The Company presents contract assets or contract liabilities on the balance sheet based on the relationship between the fulfillment of performance obligations and customer payments. Contract assets are presented for the right to consideration to which the Company is entitled in exchange for transferring goods or providing services to customers, where such right is conditional on factors other than the passage of time. Contract assets and contract liabilities under the same contract shall bepresentedonanetbasis.Theentity's unconditional right (dependentsolely on the passage of time) to receive consideration from customers is presented separatelyasareceivable. (2) Determination methods for expected credit losses on contract assets and related accounting treatment methods. The methodology for determining the expected credit losses on contract assets and the corresponding accounting treatment are detailed in Note V(9)6, "Testing MethodologyandAccountingTreatmentforFinancialInstrumentImpairment." 12. Held for sale and discontinued operations (1) Held for sale An item of non-current asset or a disposal group is classified as held for sale if its carrying amount is recovered principally through a sale transaction rather than through continuing use, which includes non-monetary asset exchanges that have commercialsubstance. The Company classifies non-current assets or disposal groups as held for sale only whentheymeetallofthefollowingconditions: (1) It isavailablefor immediate salein its currentconditioninaccordancewith the customary practices for selling such assets or disposal groups in similar transactions; (2) Highly probable sale, meaning the Company has approved a disposal plan and obtained a firm purchase commitment, with the disposal expected to be completed within one year. Where applicable regulations require approval from the Company's relevant competent authorities or regulatory bodies prior to sale, such approvalhasalreadybeenobtained. Non-current assets (excluding financial assets, deferred tax assets, and assets arising from employee benefits) or disposal groups classified as held for sale shall have their carrying amounts reduced to the fair value less costs to sell if the carrying amount exceeds that amount; the reduction shall be recognized as an impairment loss in profit or loss for the current period, and a provision for impairmentofassetsheldforsaleshallbeestablishedsimultaneously. 13. Long-term equity investment (1) Criteria for determining joint control and significant influence. Joint control refers to the shared control over an arrangement pursuant to contractual agreements, whereby decisions regarding the relevant activities of the arrangement require the unanimous consent of the parties sharing control. The investee is classified as a joint venture of the Company when the Company, together with other joint operators, exercises joint control over the investee and holdsrightstothenetassetsoftheinvestee. Significant influence refers to the power to participate in the financial and operating policy decisions of an investee without having control or joint control overthosepolicies.Theinvesteeisclassified asanassociateoftheCompanywhen theCompanyisabletoexercisesignificantinfluenceoverit. (2) Determination of the initial investment cost Long-termequityinvestmentsarisingfrombusinesscombinations. For long-term equity investments in subsidiaries formed through business combinations under common control, the initial investment cost shall be
Page 70
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 69 determined on the combination date as the investor's share of the carrying amount of the acquiree's net assets in the consolidated financial statements of the ultimate controlling party. The difference between the initial investment cost of long-term equity investments and the book value of the consideration paid shall be adjusted against the share premium in capital reserve; if the share premium in capital reserve is insufficient to offset the difference, the retained earnings shall be adjusted.Where controlover aninvestee undercommon controlis achieved dueto additional investments or other reasons, the difference between the initial investment cost of the long-term equity investment recognized in accordance with the aforementionedprinciples andthe sumofthe carrying amountof thelong-term equity investment held prior to the combination and the carrying amount of the additional consideration paid for the shares acquired on the combination date shall beadjustedagainstcapitalreserve;ifthecapitalreserveisinsufficienttoabsorbthe adjustment,thedeficitshallbechargedagainstretainedearnings. For long-term equity investments in subsidiaries formed through business combinations not under common control, the initial investment cost shall be determined based on the acquisition cost ascertained on the acquisition date. If controlover an investeethat is notundercommon control canbe achievedthrough additional investments or other reasons, the initial investment cost shall be determined as the sum of the carrying amount of the originally held equity investmentandthecostofthenewlyaddedinvestment. (2) Long-term equity investments acquired by means other than business combinations. Long-term equity investments acquired through cash payment shall have their initialinvestmentcostmeasuredattheactualpurchasepricepaid. Long-term equity investments acquired by issuing equity securities shall be initiallymeasuredatthefairvalueoftheequitysecuritiesissued. (3) Subsequent measurement and methods for recognizing gains and losses. Long-termequityinvestmentsaccountedforusingthecostmethod. Long-term equity investments in subsidiaries are accounted for using the cost method, unless the investment meets the criteria for classification as held for sale. Exceptforcashdividendsorprofits declaredbutnotyet distributedincludedinthe actual consideration paid at the time of investment, the Company recognizes current investment income based on the cash dividends or profits declared by the investeethatitisentitledtoreceive. Long-termequityinvestmentsaccountedforusingtheequitymethod. Long-term equity investments in associates and joint ventures are accounted for using the equity method. When the initial investment cost exceeds the investor's share of the fair value of the investee's identifiable net assets at the time of investment, the difference shall not adjust the initial investment cost of the long-term equity investment; conversely, when the initial investment cost is less than the investor's share of the fair value of the investee's identifiable net assets at the time of investment, the difference shall be recognized in current profit or loss, andthecostofthelong-termequityinvestmentshallbeadjustedaccordingly. TheCompanyrecognizesitsshareofthenetprofitorlossandothercomprehensive income of the investee, which it is entitled to or obligated to share, as investment income and other comprehensive income respectively, while simultaneously adjusting the carrying amount of the long-term equity investment. The share of profitorcashdividendsdeclaredbytheinvesteeshallbecalculatedandrecognized, with a corresponding reduction in the carrying amount of the long-term equity investment; for other changes in the investee's equity other than net profit or loss, other comprehensive income, and profit distribution (hereinafter referred to as "other changes in equity"), the carryingamount of the long-term equity investment shallbeadjustedandtheamountshallberecognizedinequity. When confirming the share of net profit or loss, other comprehensive income, and other changes in equity of the investee, the share is determined based on the fair
Page 71
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 70 value of the investee's identifiable net assets at the date of acquisition, with adjustments made to the investee's net profit and other comprehensive income in accordancewiththecompany'saccountingpoliciesandaccountingperiods. Unrealized internal transaction gains or losses between the Company and its associates or joint ventures are eliminated based on the Company's share of such amounts to recognize investment income, except where the assets contributed or sold constitute a business. Unrealized internal transaction losses incurred with investeesthatconstituteassetimpairmentlossesshallberecognizedinfull. Regarding net losses incurred by joint ventures or associates, the Company's share is limited to the carrying amount of the long-term equity investment and other long-term interests that, in substance, constitute the net investment in the joint venture or associate, reduced to zero, unless the Company has an obligation to assume additional losses. When a joint venture or an associate subsequently generates net profit, the Company shall resume recognizing its share of profit after offsetting the share of losses that were previously unconfirmed against the amount ofprofitsharing. (3)Disposaloflong-termequityinvestments Upondisposaloflong-termequityinvestments,thedifferencebetweenthecarrying amount andtheactualproceedsreceived shall berecognizedinthe currentperiod's profitorloss. In the event of a partial disposal of long-term equity investments accounted for under the equity method where the remaining equity interest continues to be accountedforusingtheequitymethod,theothercomprehensiveincomepreviously recognized under the equity method shall be transferred on a basis consistent with that used by the investee for the direct disposal of relevant assets or liabilities, proportionate to the portion disposed, while other changes in equity shall be transferredtocurrentprofitorlossonaproportionalbasis. When joint control or significant influence over an investee is lost due to the disposal of equity investments or other reasons, other comprehensive income recognized for the original equity investment under the equity method shall be accounted for at the same basis as the direct disposal of related assets or liabilities bytheinvesteeupondiscontinuationoftheequitymethod,andallotherchangesin owners' equity shall be transferred to current profit or loss upon discontinuation of theequitymethod. When control over an investee is lost due to the disposal of a portion of equity investments or similar reasons, and the remaining equity interest is capable of exercising joint control or significant influence over the investee, the remaining interest shall be accounted for using the equity method, with retrospective adjustment as if the equity method had been applied since the date of acquisition; other comprehensive income recognized prior to obtaining control shall be reclassified on thesame basis as ifthe investee haddirectly disposedof the related assets or liabilities, proportionally, and other changes in equity recognized under theequitymethodshallbereclassifiedproportionallytocurrentprofitorloss;ifthe remaining equity interest is incapable of exercising joint control or significant influence, it shall be classified as a financial asset, with the difference between its fair value and carrying amount at the date control was lost recognized in current profit or loss, and all other comprehensive income and other changes in equity recognizedpriortoobtainingcontrolshallbefullyreclassified. Where a subsidiary's equity investment is disposed of in stages through multiple transactions until control is lost, and such transactions constitute a package deal, they shall be accounted for as a single transaction involving the disposal of the subsidiary's equity investment and the loss of control; prior to the loss of control, the difference between the disposal proceeds for each transaction and the corresponding carrying amount of the long-term equity investment disposed of shall, in the separate financial statements, initially be recognized as other comprehensiveincomeandsubsequentlytransferredtothecurrentperiod'sprofitor loss upon the loss of control. Transactions that do not constitute a package deal
Page 72
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 71 shallbeaccountedforseparately. 14. Investment property Investment property refers to land or buildings held to earn rentals or for capital appreciationor both,including land heldfor leaseduse, landheld for capital appreciation and later transferred, and buildings held for leased use (including buildings completed from self-construction or development activities for leased use, and buildings under constructionordevelopmentthatareintendedforleaseduseinthefuture). Subsequent expenditures related to investment property shall be capitalized into the cost of the investment property if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably; otherwise, such expenditures shall be recognized as an expense in the period in which theyareincurred. The Company measures its existing investment properties using the cost model. Investmentpropertiesmeasuredunderthecostmodel,specificallybuildingsheldforlease, aredepreciatedusing thesame policy asthecompany's fixed assets,while landuserights heldforleaseareamortizedinaccordancewiththepolicyappliedtointangibleassets. 15. Fixed assets (1) Recognition and Initial Measurement of Fixed Assets Fixed assets refer to tangible assets held for the purpose of producing goods, providing services, renting out, or for administrative management, which have a useful life exceeding one accounting year. Fixed assets are recognized only when thefollowingconditionsaresimultaneouslymet: (1) It is probable that the economic benefits associated with the fixed asset will flowintotheenterprise; (2)Thecostofthefixedassetcanbemeasuredreliably. Fixed assets are initially measured at cost, taking into account the impact of estimateddismantlingandremovalcosts. Subsequentexpendituresrelatedtofixedassetsarecapitalizedintothecostoffixed assets when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably; the carrying amount of any replaced part is derecognized; and all other subsequent expendituresarerecognizedasexpensesintheperiodinwhichtheyareincurred. (2) Depreciation methods Depreciationoffixedassetsiscalculatedusingthestraight-linemethodbycategory, with the depreciation rate determined based on the asset category,estimated useful life, and estimated net residual value rate. For fixed assets with impairment provisions recognized, depreciation expense in future periods shall be determined based on the carrying amount after deducting the impairment provision and the estimated remaining useful life. If the components of a fixed asset have different useful lives or provide economic benefits to the enterprise in different ways, different depreciation rates or depreciation methods shall be selected to calculate depreciationseparately. The depreciation methods, useful lives, residual value rates, and annual depreciationratesforvariouscategoriesoffixedassetsareasfollows: Category ServiceLife(Years) Estimatedresidual valuerate Annualdepreciationrate Housesandbuildings 20-35 3% 2.77-4.85% Machineryandequipment 5-20 3% 4.85-19.40% Transportationequipment 4-10 3% 9.70-24.25% Otherdevices 3-21 3% 4.62-32.33% Note: Depreciation for molds in machinery and equipment is calculated using the
Page 73
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 72 units-of-productionmethod. (3) Disposal of fixed assets Afixedasset shallbederecognized uponits disposal orwhenit is expectedthat no future economic benefits will be derived from its use or disposal. The disposal proceeds from the sale, transfer, scrapping, or damage of fixed assets, after deducting their book value and related taxes and fees, shall be recognized as currentperiodprofitorloss. 16. Construction in progress Construction in progress is measured at the actual costs incurred.Actual costs encompass constructioncosts, installation costs,borrowing costs eligible forcapitalization, andother necessary expenditures incurred prior to bringing the construction in progress to its intended usable condition. Construction in progress is transferred to fixed assets upon reaching the intended usable state, and depreciation commences from the following month. 17. Borrowing costs (1) Recognition principles for capitalization of borrowing costs Borrowing costs directly attributable to the acquisition, construction,or production of qualifying assets shall be capitalized and included in the cost of the relevant assets; other borrowing costs shall be recognized as expenses in the period in whichtheyareincurredandchargedtothecurrentperiod'sprofitorloss. Assets qualifying for capitalization refer to fixed assets, investment properties, and inventories, among others, that require a substantial period of construction or productionactivitiestoreachtheirintendedusableorsalablecondition. (2) Capitalization period of borrowing costs The capitalization period refers to the period from the commencement of capitalization of borrowing costs to the cessation of capitalization, excluding any periodduringwhichcapitalizationofborrowingcostsissuspended. Borrowing costs shall commence when all of the following conditions are simultaneouslymet.Capitalization: (1) Capital expenditures have been incurred, which include expenditures incurred in the form of cash payments, transfers of non-cash assets, or assumption of interest-bearing debts for the purpose of constructing or producing assets that qualifyforcapitalization; (2)Borrowingcostshavebeenincurred; (3) Activities necessary to bring the asset to its intended usable or saleable conditionhavecommenced. Borrowing costs shall cease to be capitalized when the qualifying assets under constructionorproductionreachtheirintendedusableorsaleablestatus. (3) During the period of capitalization suspension Borrowing costs shall be suspended from capitalization for assets that meet the capitalization criteria if an abnormal interruption occurs during their acquisition, construction, or production and the interruption lasts continuously for more than three months; If the borrowing costs are incurred as a necessary procedure for the acquisition, construction, or production of a qualifying asset to reach its intended usable or salable condition, such borrowing costs shall continue to be capitalized. Borrowing costs incurred during an interruption are recognized as expenses in the current period until the borrowing costs resume capitalization after the acquisition, construction,orproductionactivitiesoftheassetrecommence. (4) Calculation methods for the capitalization rate of borrowing costs and the amount of capitalized costs. For special borrowings incurred specifically for the construction or production of
Page 74
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 73 qualifying assets, the amount of borrowing costs to be capitalized shall be determined by deducting from the actual borrowing costs incurred during the period any interest income earned from depositing the undrawn portion of the borrowing funds in a bank or any investment income earned from temporary investments. For general borrowings utilized in the acquisition or construction of qualifying assets, the amount of borrowing costs to be capitalized is determined by multiplying the weighted average of accumulated asset expenditures exceeding the specific borrowings by the capitalization rate applicable to the general borrowings utilized.Thecapitalizationrateis determinedbasedontheweightedaverage actual interestrateofgeneralborrowings. During the capitalization period, exchange differences arising from the principal and interest of foreign currency borrowings specifically for qualifying assets shall becapitalizedandincludedinthecostofthoseassets.Exchangedifferencesarising from the principal and interest of foreign currency borrowings other than those specifically borrowed for foreign currency purposes shall be recognized in the currentperiod'sprofitorloss. 18. Intangible assets (1) Valuation methods for intangible assets (1)Uponacquisition,intangibleassetsareinitiallymeasuredatcost; The cost of purchased intangible assets includes the purchase price, related taxes and fees, and other expenditures directly attributable to bringing the asset to the conditionandlocationnecessaryforitsintendeduse. (2)SubsequentMeasurement Analyzeanddeterminetheusefullifeofintangibleassetsupontheiracquisition. Intangibleassetswithfiniteusefullivesareamortizedovertheperiodduringwhich they are expected to generate economic benefits for the enterprise; if the period over whichanintangible asset isexpected togenerate economic benefitscannot be foreseen, it is classified as an intangible asset with an indefinite useful life and is notamortized. (2) Estimation of the useful lives of intangible assets with finite useful lives. Item Expectedservicelife Amortizationmethod Landuserights 33-50years Straight-linemethod Softwareusagerights 2years Straight-linemethod Trademarkusagerights 10years Straight-linemethod Non-patentedtechnology 5-11years Straight-linemethod Patentedtechnology 10years Straight-linemethod (3) Specific criteria for delineating the research phase and the development phase. Expenditures for internal company research and development Items are classified intoresearchphaseexpendituresanddevelopmentphaseexpenditures. Research Phase: The stage involving original, planned investigations and research activities conducted to acquire and comprehend new scientific or technological knowledge. Development Phase: The stage involving the application of research findings or otherknowledgetoaspecificplanordesignpriortocommercialproductionoruse, aimed at producing new materials, devices, products, or other items with substantiveimprovements. (4) Specific conditions for capitalizing development phase expenditures Expendituresincurredduringtheresearchphaseshallberecognizedasexpensesin
Page 75
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 74 the current period when incurred. Expenditures incurred during the development phase shall be recognized as intangible assets only if they satisfy all of the following conditions; otherwise, such expenditures shall be charged to the current period'sprofitorloss. (1) It is technically feasible to complete the intangible asset so that it will be availableforuseorsale. (2)Theintentiontocompletetheintangibleassetanduseorsellit; (3) The manner in which an intangible asset generates future economic benefits, including demonstrating the existence of a market for the products produced using theintangibleassetorfortheintangibleassetitself, and,iftheintangibleassetisto beusedinternally,demonstratingitsutility. (4)Sufficient technical,financial,andotherresourcesareavailable tocomplete the developmentoftheintangibleassetandtouseorsellit; (5) Expenditures incurredduringthedevelopment phaseofthe intangible asset can bemeasuredreliably. If research phase expenditures and development phase expenditures cannot be distinguished, all incurred research and development expenditures shall be recognizedasexpensesinthecurrentperiod. 19. Long-term asset impairment Long-term equity investments, investment properties measured under the cost model, fixed assets, construction in progress, right-of-use assets, and intangible assets with finite useful lives are subject to impairment testing if there are indications of impairment as of the balance sheet date. If the impairment test indicates that the recoverable amount of an asset is lower than its carrying amount, an impairment provision shall be accrued for the differenceandrecognized asanimpairment loss.Therecoverable amount is thehigher of an asset's fair value less costs of disposal and its value in use, which is the present value of the estimated future cash flows expected to be derived from the asset. Impairment provisions for assets are calculated and recognized on an individual asset basis; however, if it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs shall be determined. A cash-generatingunitisthesmallestidentifiablegroupofassetsthatgeneratescashinflows thatarelargelyindependentofthecashinflowsfromotherassetsorgroupsofassets. Goodwill arising from business combinations, intangible assets with indefinite useful lives,andintangibleassets notyet availablefor useshall betestedfor impairment atleast annually at the end of each fiscal year, regardless of whether there is any indication of impairment. The Company conducts impairment tests for goodwill; the carrying amount of goodwill arising from business combinations is allocated to relevant asset groups from the acquisition date using a reasonable method, and if it is difficult to allocate to a specific asset group, it is allocated to the relevant asset group combination.Arelevant asset group or combination of asset groups is an asset group or combination of asset groups that can benefitfromthesynergiesarisingfromabusinesscombination. When performing impairment tests on asset groups or combinations of asset groups that includegoodwill, if there areindications ofimpairment inthe asset groupor combination of asset groups related to goodwill, an impairment test shall first be conducted on the asset group or combination of asset groups excluding goodwill to calculate the recoverable amount, compare it with the relevant carrying amount, and recognize the corresponding impairment loss. Subsequently, an impairment test is performed on the asset group or group of asset groups containing goodwill by comparing its carrying amount with its recoverable amount; if the recoverable amount is lower than the carrying amount, the impairment loss is first allocated to reduce the carrying amount of goodwill allocated to the asset group or group of asset groups, and then, in proportion to the carrying amounts of the other assets within the asset group or group of asset groups excludinggoodwill,thecarryingamountsofthoseotherassetsarereducedaccordingly. Once recognized, the impairment loss on the aforementioned assets shall not be reversed insubsequentaccountingperiods.
Page 76
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 75 20. Long-term deferred expenses Long-term deferred expenses refer to various costs that have been incurred but are to be amortized over a period exceeding one year, borne by the current period and subsequent periods. 21. Contract liabilities TheCompanypresentscontractassetsorcontractliabilitiesonthebalancesheetbasedon the relationship between the fulfillment of performance obligations and customer payments. Contract liabilities are presented as the Company's obligations to transfer goods or provide services to customers in exchange for consideration received or receivable from such customers. Contract assets and contract liabilities under the same contractshallbepresentedonanetbasis. 22. Employee compensation (1) Accounting treatment methods for short-term employee benefits. The Company recognizes short-term compensation as a liability and charges it to current profit or loss or to the cost of relevant assets during the accounting periods inwhichemployeesprovideservicestotheCompany. The social insurance premiums and housing provident fund contributions paid by the Company for its employees, along with the trade union funds and employee education funds accrued in accordance with regulations, are determined as corresponding employee compensation amounts for the accounting periods during which employees provide services to the Company, calculated based on the prescribedaccrualbasesandaccrualratios. Employee welfareexpensesincurredbytheCompanyarerecognizedinthecurrent period's profit or loss or in the cost of relevant assets based on the actual amounts incurred at the time of occurrence, with non-monetary welfare measured at fair value. (2) Accounting treatment methods for post-employment benefits (1)Definedcontributionplan The Company contributes to basic endowment insurance and unemployment insurance for its employees in accordance with relevant regulations of the local government;duringtheaccountingperiodsinwhichemployeesprovide services to the Company,the amount payable is calculated based on the contribution base and rateprescribedbylocalregulations,recognizedasaliability,andchargedtocurrent periodprofitorlossorincludedinthecostofrelevantassets. (2)Definedbenefitplan The Company attributes the benefit obligations arising from the defined benefit plantotheperiodsduringwhichemployees provideservices, basedontheformula determined by the Itemed unit credit method, and recognizes them in the current profitorlossoraspartofthecostofrelevantassets. The deficit or surplus arising from the present value of the defined benefit obligation less the fair value of the defined benefit plan assets is recognized as a net defined benefit liability or a net defined benefit asset. Where a defined benefit plan has a surplus, the Company measures the net asset of the defined benefit plan atthelowerofthesurplusintheplanandtheassetceiling. All obligations under defined benefit plans, including those expected to be settled within twelve months after the end of the annual reporting period in which employee services are rendered, are discounted using the market yield at the balance sheet date on government bonds or high-quality corporate bonds in an active market that match the term and currency of the defined benefit plan obligations. Service costs arising from defined benefit plans and the net interest on the net defined benefit liability or asset are recognized in profit or loss or included in the cost of relevant assets; changes resulting from remeasuring the net defined benefit
Page 77
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 76 liability or asset are recognized in other comprehensive income and shall not be reclassified to profit or loss in subsequent accounting periods, and upon termination of the original defined benefit plan, the amount previously recognized in other comprehensive income shall be fully transferred within equity to retained earnings. Upon settlement of a defined benefit plan, a gain or loss on settlement is recognizedbasedonthedifferencebetweenthepresentvalueofthedefinedbenefit obligationdeterminedatthesettlementdateandthesettlementprice. (3) Accounting treatment methods for termination benefits When the Company provides termination benefits to employees, it recognizes the liabilityforemployeebenefitsarisingfromterminationbenefitsattheearlierofthe following dates: when the Company can no longer unilaterally withdraw the terminationbenefitsofferedduetoaplantoterminateemployment relationshipsor a proposal for workforce reductions; or when the Company recognizes costs or expenses related to a restructuring that involves the payment of termination benefits,andsuchamountsareincludedincurrentperiodprofitorloss. 23. Provision for liabilities TheCompanyrecognizesaprovisionforcontingent liabilitieswhentherelatedobligation meetsallofthefollowingconditions: (1)ThisobligationrepresentsapresentobligationassumedbytheCompany; (2) It is probable that fulfilling this obligation will result in an outflow of economic benefitsfromtheCompany; (3)Theamountoftheobligationcanbemeasuredreliably. Provisions are initially measured at the best estimate of the expenditure required to settle thepresentobligation. When determining the best estimate, factors such as risks, uncertainties, and the time value of money related to contingent events are comprehensively considered. For items where the time value of money has a material effect, the best estimate is determined by discountingtherelevantfuturecashoutflows. When the expenditure required to settle a provision is expected to be reimbursed wholly or partially by a third party, the compensation amount is recognized as a separate asset only when it is virtually certain to be received, and the recognized compensation amount shallnotexceedthecarryingamountoftheprovision. The Company reviews the carrying amount of provisions at the balance sheet date and adjusts the carrying amount to the current best estimate if there is conclusive evidence thatthecarryingamountnolongerreflectsthecurrentbestestimate. 24. Share-based payment The share-based payment transactions of the Company are transactions in which equity instrumentsaregrantedorliabilitiesareincurredbasedonequityinstrumentsinexchange for services received from employees or other parties. The Company's share-based payments are classified into equity-settled share-based payments and cash-settled share-basedpayments. (1) Equity-settled share-based payments and equity instruments Share-based payments settled by equity instruments in exchange for employee services shall be measured at the fair value of the equity instruments granted to employees. For share-based payment transactions that are exercisable immediately upon grant, the fair value of the equity instruments is recognized as relevant costs or expenses onthegrant date, with a correspondingincreasein capital reserve. For share-based payment transactions where vesting is contingent uponthe completion of service during the vesting period or the achievement of specified performance conditions, the Company, on each balance sheet date during the vesting period, recognizes the services received in the current period as relevant costs or expenses and correspondingly increases capital reserve, based on the best estimate of the
Page 78
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 77 number of equity instruments expected to vest andmeasured at the fair value as of thegrantdate. If the terms of an equity-settled share-based payment arrangement are modified, at leasttheservicesreceivedshallberecognizedasifthetermshadnotbeenmodified. Furthermore, any modification that increases the fair value of the equity instruments granted, or any change favorable to employees on the modification date,shallresultintherecognitionofanincreaseintheservicesobtained. During the vesting period, if the granted equity instruments are cancelled, the Company shall treat the cancellation as an accelerated vesting event, immediately recognizing the amount that would have been recognized over the remaining vesting period in the current period's profit or loss, while simultaneously recognizing additional paid-in capital. However, if new equity instruments are granted and it is determined on the grant date of the new equity instruments that they are granted in replacement of the cancelled equity instruments, the replacement equity instruments shall be accounted for in the same manner as the modificationofthetermsandconditionsoftheoriginalequityinstruments. (2) Share-based payments settled in cash and equity instruments Share-based payments settled in cash are measured at the fair value of the liability incurred by the Company, which is determined based on shares or other equity instruments. For share-based payment transactions that are vested immediately upon grant, the Company recognizes the fair value of the liability incurred on the grant date as relevant costs or expensesand correspondingly increases the liability. For share-based payment transactions that requireservice to becompleted within a vesting period or the achievement of specified performance conditions before vesting, the Company shall, on each balance sheet date during the vesting period, recognize the services received in the current period in the relevant costs or expenses and correspondingly in liabilities, based on the best estimate of the number of instruments expected to vest and measured at the fair value of the liability assumed by the Company. At each balance sheet date prior to the settlement of the relevant liability and on the settlement date, the fair value of the liabilityisremeasured,withanychangesrecognizedinprofitorlossforthecurrent period. When the Company modifies the terms and conditions of a cash-settled share-based payment arrangement to convert it into an equity-settled share-based payment arrangement, it shall measure the equity-settled share-based payment arrangement at the fair value of the equity instruments granted on the modification date, regardless of whether the modification occurs during or after the vesting period; the services received to dateshall berecognized inequity (capital reserve), the liability recognized for the cash-settled share-based payment arrangement as of the modification date shall be derecognized, and the difference between the two amounts shall be recognized in profit or loss for the current period. If the waiting period is extended or shortened due to modifications, the Company shall account forthemodificationbasedontherevisedwaitingperiod. 25. Income 1、 Accounting policies adopted for the recognition and measurement of revenue. The Company recognizes revenue when it satisfies its performance obligations under the contract,which occurswhen the customer obtains control of therelevant goods or services. Obtaining control over relevant goods or services refers to the ability to directtheuse ofsuchgoodsor servicesandobtain substantiallyall ofthe remainingeconomicbenefitsfromthem. When a contract includes two or more performance obligations, the Company allocates the transaction price to each performance obligation on the contract inception date based on the relative standalone selling prices of the goods or services promised in each performance obligation. The Company recognizes revenue based on the transaction price allocated to each distinct performance
Page 79
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 78 obligation. Transaction price refers to the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties and amounts expected to be refundedtocustomers.TheCompanydeterminesthetransactionpricebasedonthe contract terms and its past customary practices, considering the effects of variable consideration, significant financing components, non-cash consideration, and consideration payable to the customer when establishing the transaction price.The Company determines the transaction price, which includes variable consideration, as the amount of revenue recognized to date that is highly probable will not result in a significant reversal when the related uncertainties are resolved. Where a contract contains a significant financing component, the Company determines the transaction price as the amount of cash that would be payable by the customer at the time the customer obtains control of the goods or services, and amortizes the difference between the transaction price and the contract consideration over the contractperiodusingtheeffectiveinterestmethod. An entity satisfies a performance obligation over a period of time if any of the followingconditionsaremet;otherwise,theperformanceobligationissatisfiedata pointintime: • The customer simultaneously obtains and consumes the economic benefits derivedfromtheCompany'sperformanceastheCompanyperforms. • The customer has the ability to control the work-in-progress asset during the company'sperformance. • The goods produced during the Company's performance of the contract have no alternative use, and the Company has an enforceable right to payment for performancecompletedtodatethroughouttheentirecontractperiod. For performance obligations satisfied over time, the Company recognizes revenue over that period based on the progress of performance, except where the progress cannot be reasonably determined. The Company determines the progress of performance obligations using the output method or the input method, considering the nature of the goods or services. When the progress of fulfillment cannot be reasonably determined, if the costs incurred are expected to be recoverable, the Company recognizes revenue equal to the amount of costs incurred until the progressoffulfillmentcanbereasonablydetermined. For performance obligations satisfied at a point in time, the Company recognizes revenue when the customer obtains control of the relevant goods or services. In determining whether a customer has obtained control of goods or services, the Companyconsidersthefollowingindicators: • The Company has a present right to consideration for the goods or services, meaningthecustomerhasapresentobligationtopayforthegoodsorservices. • The Company has transferred the legal title of the product to the customer, meaningthecustomernowholdsthelegaltitletotheproduct. • The Company has transferred physical possession of the product to the customer,meaningthecustomernowhasphysicalcontroloftheproduct. • The Company has transferred the significant risks and rewards of ownership of the goods to the customer, meaning that the customer has obtained the significantrisksandrewardsofownershipofthegoods. • Thecustomerhasacceptedthegoodsorservices. The Companydetermines whetherit actsas a principalor an agent in atransaction based on whether it controls the specified good or service before that good or serviceistransferredtothecustomer.TheCompanyistheprincipalandrecognizes revenue based on the total amount of consideration received or receivable if it controls the goods or services before transferring them to the customer; otherwise, the Company is an agent and recognizes revenue based on the amount of commissionorfeesitexpectstobeentitledtoreceive.
Page 80
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 79 2、 Disclose the specific revenue recognition methods and measurement approaches according to business type. The Company recognizes revenue when it satisfies its performance obligations under the contract,which occurswhen the customer obtains control of therelevant goods or services. Obtaining control over relevant goods or services refers to the ability to direct the use of such goods or the provision of such services and to obtainsubstantiallyalloftheremainingeconomicbenefitstherefrom. (1)Salescontractforgoods Sales contracts between the Company and its customers typically include performance obligations, such as the transfer of goods. The Company typically recognizes revenue at the point in time when each performance obligation is satisfied, based on a comprehensive assessment of the following factors: the existence of a present right to payment for the goods, the transfer of significant risksandrewardsofownershipofthegoods,thetransfer oflegal titletothegoods, the transfer of physical possession of the goods, and the customer's acceptance of thegoods. (2)Provideaservicecontract. The performance obligations under service contracts between the Company and its customers are recognized as satisfied over a period of time because the customer simultaneously receives and consumes the economic benefits derived from the Company's performance,andtheCompanyhasanenforceablerighttopaymentfor performance completed to date throughout the contract period; accordingly, revenue is recognized based on the progress of performance, except where the progress cannot be reasonably determined. The Company determines the progress of performance of serviceobligations using theoutput methodbasedon completed or delivered products. When the progress of performance cannot be reasonably determined, if the costs incurred by the Company are expected to be recoverable, revenue shall be recognized based on the amount of costs incurred until the progressofperformancecanbereasonablydetermined. (3)Variableconsideration Certain contracts between the Company and its customers include sales rebate arrangements, resulting in variable consideration. The Company determines the best estimate of variable consideration based on either the expected value or the most likely amount, provided that the transaction price including variable consideration does not exceed the amount for which it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the relateduncertaintyisresolved. (4)WarrantyObligations In accordance with the contract agreement and applicable laws, the Company provides a quality assurance for the products sold. For product warranties that provide a service in addition to assuring customers that the sold products comply with agreed-upon standards, the Company treats such service-type warranties as a separate performance obligation, allocates a portion of the transaction price to the service-type warranty based on the relative standalone selling prices of the products andthe service-type warranty,andrecognizes revenuewhen the customer obtainscontroloftheservice.Whenassessingwhetheraqualityassuranceprovides a separate service to the customer beyond assuring that the products sold comply with agreed-upon specifications, the Company considers factors such as whether the quality assurance is legally required, the duration of the quality assurance, and thenatureofthetaskstheCompanycommitstoperforming. (5)RewardPointsProgram The Company grants reward points to customers when selling products or providing services, whichcustomers can redeemfor free or discounted products or services. The rewards points program grants customers a material right, which the
Page 81
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 80 Companyaccountsfor asaseparateperformanceobligation; accordingly,a portion of the transaction price is allocated to the rewards points based on the relative standalone selling prices of the goods or services provided and the rewards points, and revenue is recognized when the customer obtains control of the goods or servicestoberedeemedforthepointsorwhenthepointsexpire. (6)PrincipalResponsiblePerson/Agent Regarding the Company's ability to direct third-party representatives to provide services to customers on its behalf, the Company has the autonomy to determine the prices of the goods or services transacted; specifically, the Company controls the relevant goods prior to their transfer to customers, thereby establishing the Company as the principal, and revenue is recognized based on the total amount of consideration received orreceivable. Otherwise, the Companyacts as an agent and recognizesrevenuebasedonthecommissionorfeeamountitexpectstobeentitled to receive, which shall be determined as the net amount after deducting payments to be made to other relevant parties from the total consideration received or receivable,orbasedontheagreedcommissionamountorpercentage. 26. Contract costs Contractcostscomprisecontractfulfillmentcostsandcontractacquisitioncosts. Costs incurred by the Company to fulfill a contract that fall outside the scope of relevant accounting standards governing inventories, property, plant and equipment, or intangible assets shall be recognized as an asset as contract fulfillment costs if the following conditionsaremet: • This cost is directly attributable to a contract that is either current or expected to be obtained. • This cost increases the resources the Company will use to fulfill its performance obligationsinthefuture. • Thiscostisexpectedtoberecoverable. IncrementalcostsincurredbytheCompanytoobtainacontractarerecognizedasanasset ascontractacquisitioncostsiftheyareexpectedtoberecoverable. Assets related to contract costs are amortized on the same basis as the recognition of revenue for the goods or services associated with such assets; however, for contract acquisition costs with an amortization period not exceeding one year, the Company recognizesthemincurrentprofitorlosswhenincurred. For assets related to contract costs, if their carrying amount exceeds the difference between the following two items, the Company shall recognize an impairment provision fortheexcessamountandconfirmitasanassetimpairmentloss: 1. The remaining consideration expected to be received from the transfer of goods or servicesrelatedtotheasset; 2.Theestimatedcostsexpectedtobeincurredtotransfertherelatedgoodsorservices. If factors that previously caused an impairment change, resulting in the aforementioned difference exceeding the asset's carrying amount, the Company shall reverse the previously recognized impairment provision and recognize it in current profit or loss, provided that the asset's carrying amount after reversal does not exceed the carrying amount that would have been determined had no impairment provision been recognized onthedateofreversal. 27. Government subsidies (1) Type Government grants are monetary ornon-monetaryassets received bytheCompany from the government without charge, classified into grants related to assets and grantsrelatedtoincome. Government grants related to assets refer to those grants received by the Company that are intended for the acquisition, construction, or other forms of creation of long-term assets. Government grants related to income refer to government grants otherthanthoserelatedtoassets.
Page 82
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 81 (2) Confirmation point Government grants are recognized when the company meets the conditions attachedtothemandwhenthegrantsarereceivable. (3) Accounting treatment TheCompanyaccountsforgovernmentgrantsusingthenetmethod. Government grants related to assets are either deducted from the carrying amount of the relevant assets or recognized as deferred income. Deferred income recognizedshallbeallocatedtocurrentprofitorlossininstallmentsovertheuseful lifeoftherelatedassetusingareasonableandsystematicmethod; Government grants related to income that compensate for relevant costs, expenses, or losses to be incurred by the Company in future periods are recognized as deferred income and are included in the current period's profit or loss or offset against relevant costs, expenses, or losses in the period when the related costs, expenses,orlossesarerecognized; governmentgrants thatcompensateforrelevant costs, expenses, orlosses already incurredbythe Company arerecognized directly in the current period's profit or loss or offset against relevant costs, expenses, or losses. The interest subsidy on policy-based preferential loans obtained by the Company shallbeaccountedforseparatelyaccordingtothefollowingtwoscenarios: (1) When the government allocates interest subsidy funds to the lending bank, which then provides loans to the Company at a preferential policy rate, the Companyshallrecognizetheloanattheamountactuallyreceivedandcalculatethe relatedborrowingcostsbasedontheloanprincipalandthepreferentialpolicyrate. (2)WherethegovernmentdirectlydisbursesinterestsubsidyfundstotheCompany, the Company shall offset the corresponding interest subsidy against the relevant borrowingcosts. 28. Deferred tax assets and deferred tax liabilities Income tax comprises current income tax and deferred income tax. Except for income taxesarisingfrombusinesscombinationsandtransactionsoreventsrecognizeddirectlyin equity (including other comprehensive income), the Company recognizes current and deferredincometaxesinthecurrentperiod'sprofitorloss. Deferred tax assets and deferred tax liabilities are recognized based on the differences (temporary differences) between the tax bases of assets and liabilities and their carrying amounts. Deferred tax assets arising from deductible temporary differences are recognized to the extent that it is probable that taxable profits will be available in future periods against which the deductible temporary differences can be utilized. Deferred tax assets are recognized for deductible losses and tax credits carried forward to future years to the extent that it is probable that future taxable profit will be available against which the deductiblelossesandtaxcreditscanbeutilized. Deferred tax liabilities are recognized for all taxable temporary differences, except in specificcircumstances. Special circumstances in which deferred tax assets or deferred tax liabilities are not recognizedinclude: • Initialrecognitionofgoodwill. • Transactions or events that are not business combinations, do not affect accounting profit or taxable income (or deductible losses) at the time of occurrence, and where the initial recognition of assets and liabilities does not give rise to equal amounts of taxable temporarydifferencesanddeductibletemporarydifferences. Deferred tax liabilities are recognized for all taxable temporary differences associated
Page 83
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 82 with investments in subsidiaries, associates, and joint ventures, except where the Companyis abletocontrolthe timing ofthereversal ofthe temporarydifferenceandit is probable thatthe temporary differencewill notreverse intheforeseeablefuture. Deferred tax assets are recognized for deductible temporary differences associated with investments in subsidiaries, associates, and joint ventures when it is probable that the temporary differences will reverse in the foreseeable future andthat taxable profit will be availableagainstwhichthedeductibletemporarydifferencescanbeutilized. At the balance sheet date, deferred tax assets and deferred tax liabilities are measured using the tax rates that are expected to apply in the periods when the related assets are recoveredortherelatedliabilitiesaresettled,inaccordancewithtaxlaws. At the balance sheet date, the Company reviews the carrying amount of deferred tax assets. If it is not probable that sufficient taxable profits will be available in the future to utilize the benefits of deferred tax assets, the carrying amount of deferred tax assets is reduced. The amount of the reduction is reversed when it is probable that sufficient taxableprofitwillbeavailabletoutilizethedeductibletemporarydifferences. Current income tax assets and current income tax liabilities are presented on a net basis whenthere is a legally enforceable right to set off therecognized amounts and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously. On the balancesheet date, deferred tax assets and deferredtax liabilities are presented on anetbasisonlywhenthefollowingconditionsaresimultaneouslymet: • The taxpayer has a legally enforceable right to offset current income tax assets against currentincometaxliabilitiesonanetbasis. • Deferred tax assets and deferred tax liabilities are recognized as a net amount if they relate to income taxes levied by the same taxation authority on either the same taxable entity or on different taxable entities that intend to settle current tax assets and liabilities onanetbasisortorealizetheassetsandsettletheliabilitiessimultaneouslyineachfuture periodinwhichsignificantdeferredtaxassetsandliabilitiesareexpectedtoreverse. 29. Leasing Leasing refers to a contract whereby the lessor transfers the right to use an asset to the lesseeforaspecifiedperiodinexchangeforconsideration.Onthecommencementdateof thecontract,theCompanyassesseswhetherthecontractis,orcontains,alease.Acontract is a lease or contains a lease if it conveys the right to control the use of one or more identifiedassetsforaperiodoftimeinexchangeforconsideration. When a contract contains multiple separate leases, the Company shall separate the contract and account for each separate lease individually. When a contract contains both lease and non-lease components, the lessee and the lessor shall allocate the lease and non-leasecomponentsseparately. (1) The Company, as the lessee, (1)Right-of-useassets On the commencement date of the lease term, the Company recognizes a right-of-useasset forall leasesexcept forshort-term leasesandleasesoflow-value assets.Right-of-useassetsareinitiallymeasuredatcost.Thiscostincludes: Theinitialmeasurementamountofleaseliabilities; Leasepaymentsmadeatorbeforethecommencementdateofthelease,netof anyleaseincentivesreceived. InitialdirectcostsincurredbytheCompany; TheCompanyrecognizesprovisionsfortheestimatedcostsofdismantling andremovingleasedassets,restoringthesiteonwhichtheleasedassetsare located,orrestoringtheleasedassetstotheconditionstipulatedinthelease terms,excludingcostsincurredfortheproductionofinventory. The Company will subsequently depreciate the right-of-use assets using the straight-line method. For leases where it is reasonably certain that the Company will obtain ownership of the leased asset at the end of the lease term, depreciation ischargedovertheremainingusefullifeoftheleasedasset;otherwise,depreciation is charged over the shorter of the lease term and the remaining useful life of the
Page 84
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 83 leasedasset. (2)Leaseliabilities On the commencement date of the lease term, the Company recognizes a lease liability for all leases except for short-term leases and leases of low-value assets. Lease liabilities are initially measured at the present value of the lease payments thatarenotyetpaid.Leasepaymentsinclude: Fixedpayments(includingsubstantivefixedpayments),lessanylease incentivesreceived. Variableleasepaymentsthatdependonanindexorarate; Theestimatedamountpayablebasedontheguaranteedresidualvalue providedbythecompany. Theexercisepriceofthepurchaseoption,providedthatthecompany reasonablydeterminesitwillexercisesuchoption; Amountspayableforexercisingaterminationoption,providedthatthelease termreflectsthecompany'sintentiontoexercisethatterminationoption. TheCompanyutilizes theimplicit rateoftheleaseasthediscountrate;however,if the implicit rate of the lease cannot be determined reasonably, the Company's incrementalborrowingrateisusedasthediscountrate. The Company calculates interest expenses on lease liabilities for each period duringtheleasetermbasedonafixedperiodicinterestrate andrecognizesthemin currentprofitorlossoraspartofthecostofrelevantassets. Variable lease payments that are not included in the measurement of the lease liability are recognized in profit or loss for the current period or as part of the cost oftherelatedassetwhentheyoccur. Subsequent to the commencement date of the lease, the Company remeasures the lease liability and adjusts the corresponding right-of-use asset in the event of the following circumstances; if the carrying amount of the right-of-use asset has been reduced to zero but the lease liability still requires further reduction, the difference shallberecognizedinprofitorlossforthecurrentperiod. When the assessment results of purchase options, renewal options, or terminationoptionschange,orwhentheactualexerciseofsuchoptionsdiffers from the original assessment, the Company remeasures the lease liability based on the present value of the revised lease payments calculated using the reviseddiscountrate. When the amount of substantive fixed lease payments changes, the estimated amount payable under the guaranteed residual value changes, or the index or rate used to determine lease payments changes, the Company remeasures the lease liability based on the present value of the revised lease payments discounted at the original discount rate. However, if changes in lease payments arise from changes in a floating interest rate, the presentvalue shall berecalculatedusingareviseddiscountrate. (3)Short-termleasesandleasesoflow-valueassets The Company elects not to recognize right-of-use assets and lease liabilities for short-term leases and leases of low-value assets, and instead recognizes the related lease payments as an expense on a straight-line basis over the lease term in the current period's profit or loss or in thecost of therelevant asset.Ashort-term lease is defined as a lease that, at the commencement date, has a lease term of no more than 12 months and does not include a purchase option. A low-value asset lease refers to a lease where the underlying asset, when new, has a low value. If a companysubleasesorexpectstosubleasealeasedasset,theoriginalleaseshallnot beclassifiedasalow-valueassetlease. (4)Leasemodification A lease modification is accounted for as a separate lease if the modification increases the scope of the lease by adding the right to use one or more underlying
Page 85
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 84 assets and the consideration for the lease modification increases by an amount commensurate with the stand-alone price for the increase in scope adjusted for the specificcircumstancesofthecontract. Theleasemodificationexpandsthescopeoftheleasebyaddingoneormore underlyingassets. Theadditionalconsiderationiscommensuratewiththestand-aloneselling priceoftheexpandedscopeofthelease,adjustedforthecircumstancesofthe contract. Ifaleasemodificationisnotaccountedforasaseparatelease,ontheeffectivedate ofthemodification,theCompanyshallreallocatetheconsiderationofthemodified contract, reassess the lease term, and remeasure the lease liability based on the present value of the modified lease payments discounted at the revised discount rate. Intheeventthataleasemodificationresultsinareductioninthescopeofthelease or a shortening of the lease term, the Company shall correspondingly reduce the carrying amount of the right-of-use asset and recognize any related gain or loss fromthepartialorfulltermination oftheleaseinthecurrentperiod'sprofitorloss. For otherleasemodifications thatresult inthe remeasurement ofthe lease liability, theCompanycorrespondinglyadjuststhecarryingamountoftheright-of-useasset. (2) The Company, acting as the lessor, On the commencement date of the lease, the Company classifies leases as either financeleasesoroperatingleases.Financialleasingreferstoaleasearrangementin which, regardless of whether ownership is ultimately transferred, substantially all risks and rewards incidental to ownership of the leased asset are transferred. Operating lease refers to any lease other than a finance lease. When the Company acts as a sublessor, it classifies the sublease based on the right-of-use asset arising fromtheheadlease. (1)Accountingtreatmentforoperatingleases The lease payments under an operating lease are recognized as rental income on a straight-line basis over the lease term. The company capitalizes initial direct costs incurred in connection with operating leases and allocates them to current profit or loss over the lease term on a basis consistent with that used to recognize rental income. Variable lease payments that are not included in the measurement of the lease receivable are recognized in profit or loss in the period in which the event or condition on which they depend occurs. In the event of a modification to an operating lease, the Company shall account for the modified lease as a new lease effectivefromthemodificationdate,andanyleasepaymentsreceivedorreceivable priortothemodificationshallbetreatedaspaymentsforthenewlease. (2)Accountingtreatmentforfinancialleasing On the commencement date of the lease, the Company recognizes a receivable for the finance lease and derecognizes the leased asset. When initially measuring receivables from finance leases, the Company recognizes the net investment in the lease as the carrying amount of the receivables from finance leases. The net investmentintheleaseis thesumofthepresentvalue oftheunguaranteedresidual value and the lease payments receivable that are not yet received at the commencementdateof theleaseterm,discountedattheinterestrateimplicit inthe lease. The Companycalculates andrecognizes interest income foreach periodduringthe lease term based on a fixed periodic interest rate. The derecognition and impairment of finance lease receivables are accounted for in accordance with Note V(9)"FinancialInstruments"oftheseNotes. Variable lease payments that are not included in the measurement of the net investmentintheleasearerecognizedinprofitorlosswhentheyoccur. If a modification to a finance lease occurs and simultaneously meets the following conditions,theCompanyshallaccountforsuchmodificationasaseparatelease:
Page 86
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 85 Thischangeexpandsthescopeoftheleasebyaddingoneormoreright-of-use assets. The additional consideration is commensurate with the stand-alone selling priceoftheexpandedscopeofthelease,adjustedforthecircumstancesofthat contract. If the modification of a finance lease is not accounted for as a separate lease, the Company shall account for the modified lease in accordance with the following circumstances: If a modification would have resulted in the lease being classified as an operatingleasehadit beeneffective atthecommencement date,theCompany accounts for the modification as a new lease from the effective date of the modification, with the carrying amount of the leased asset being the net investment in the lease immediately prior to the effective date of the modification; If the modification were effective at the commencement date of the lease and theleasewouldhavebeenclassifiedasafinancelease,theCompanyaccounts for the modification in accordance with the policy on modification or renegotiationofcontractssetforthinNoteV(IX)"FinancialInstruments". (3) Sale and leaseback transaction The Company assesses and determines whether the transfer of assets in a sale and leaseback transaction constitutes a sale in accordance with the principles set forth inNoteV(25)Revenue. (1)Asalessee Wherethetransferofanassetinasaleandleasebacktransactionqualifiesasasale, the lessee measures the right-of-use asset arising from the leaseback at the proportion of the carrying amount of the original asset that relates to the right of use retained, and recognizes only the gain or loss relating to the rights transferred tothelessor. In a sale and leasebacktransaction, if the transfer of the asset does not qualify as a sale, the company, acting as the lessee, shall continue to recognize the transferred asset and simultaneously recognize a financial liability equal to the proceeds received from the transfer. The accounting treatment of financial liabilities is detailedinNoteV(IX)"FinancialInstruments". (2)Asalessor If the asset transfer in a sale and leaseback transaction constitutes a sale, the Company,asthelessor,accountsfortheassetacquisitionandaccountsfortheasset lease in accordance with the policyset forth in "2.The Companyas the Lessor"; if the asset transfer in a sale and leaseback transaction does not constitute a sale, the Company, as the lessor, does not recognize the transferred asset but recognizes a financial asset equalto the proceedsfrom the transfer.Theaccounting treatment of financialassetsisdetailedinNoteV(IX)"FinancialInstruments". 30. Methodology for determining importance criteria and basis for selection. Item CriteriaofImportance Significantnon-wholly-ownedsubsidiaries The net assets of a subsidiary account for more than 5% of the consolidatednetassets,oritsnetprofitaccountsformorethan10%ofthe consolidatednetprofit. Significantjointventuresandassociates. The investment income or loss under the equity method for long-term equity investments accounts for more than 10% of the company's consolidatednetprofit. Write-offofsignificantaccountsreceivable The write-off amount for a single item exceeds 5% of the total provision for bad debts on all types of receivables or amounts to more than 15 millionRMB.
Page 87
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 86 Item CriteriaofImportance Significant reversals or recoveries of allowancesfordoubtfulaccountsreceivable. The amount of a single write-back or reversal of bad debt provisions for receivablesaccountsformorethan5%ofthetotalbaddebtprovisionsfor allcategoriesofreceivablesorexceeds15millionRMB. Significant prepayments with an aging period exceedingoneyear. Individual amounts exceeding 5% of the total balance of various types of prepaidaccountsoramountsgreaterthan15millionRMB. Significant accounts payable with an aging periodexceedingoneyearorinarrears. Individual amounts exceeding 5% of the total accounts payable for each categoryoramountsgreaterthan15millionRMB. ImportantongoingconstructionItems TheItem'syear-endbalanceexceeds50millionRMB. 31. Changes in significant accounting policies and accounting estimates (1) Significant changes in accounting policies None. (2) Significant changes in accounting estimates None. VI. Taxes 1. Major tax types and tax rates Taxtypes Taxbase TaxRate(%) Value-AddedTax(VAT) Output tax is calculated based on the revenue from the sale of goods and taxable services in accordance with tax laws, andthe amount ofvalue-added taxpayable is the difference after deducting the input tax allowed for deduction in the currentperiod. 6,7,9,13 Consumptiontax Payablebasedontaxablesalesrevenue. 1,3,5 UrbanMaintenanceandConstructionTax Payable based on the actual value-added tax and consumptiontaxpaid. 5,7 Corporateincometax Payablebasedontaxableincome. 15-41 SurchargesonEducationTax Payable based on the actual value-added tax and consumptiontaxpaid. 3 SurchargesonLocalEducationTaxes Payable based on the actual value-added tax and consumptiontaxpaid. 2 2. Tax incentives 1. In accordance with the relevant regulations for the recognition of national high-tech enterprises and the applicable tax incentive policies, the Company and its subsidiaries below have been recognized as high-tech enterprises and are entitled to a preferential corporate income tax rate of 15% within the prescribed period: This company (2024–2026), its subsidiary Beijing ChanganAutomobile Engineering Research Co., Ltd. (2024–2026),HebeiChanganAutomobileCo.,Ltd.(2026–2028),andDeepalAutomobile TechnologyCo.,Ltd.(2026–2028). 2. In accordance with the "Announcement on Continuing the Corporate Income Tax Policies for the Western Region" jointly issued by the Ministry of Finance, the State Taxation Administration, and the National Development and Reform Commission (Announcement No. 23 of 2020 by the Ministry of Finance, the State Taxation Administration,andtheNationalDevelopmentandReformCommission),fromJanuary1, 2021, to December 31, 2030, corporate income tax shall be levied at a reduced rate of 15% for enterprises engaged in encouraged industries located in the western region. Our company's subsidiaries includeChongqing ChanganInternational Sales Service Co.,Ltd., Chongqing Changan Special Purpose Vehicle Co., Ltd., Chongqing Changan Customer
Page 88
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 87 Service Co., Ltd., Chongqing Changan Software Technology Co., Ltd., Chongqing Changan Technology Co., Ltd., Chongqing Xingzhi Technology Co., Ltd., Chongqing Lingyao Automobile Co., Ltd., and Chongqing Chehe Mei Technology Co., Ltd. In compliancewith theaforementionedrequirements,thecorporateincometaxpayableshall becalculatedatthe15%taxrate. 3. In accordance with the "Announcement of the Ministry of Finance and the State Taxation Administration on Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households Regarding Relevant Taxand Fee Policies" (Announcement No. 12 of 2023 of the Ministry of Finance andthe State Taxation Administration), the taxable income of small and low-profit enterprises shall be calculated at 25% of the actual amount, andcorporate income tax shall be levied at a rate of 20%. Our subsidiaries, Shanghai Changan Zhixing Technology Co., Ltd., Xiamen Changan New Energy Automobile Sales and Service Co., Ltd., Deepal Automobile Nanjing Research Institute Co., Ltd., and DeepalAutomobile Marketing and Service (Shenzhen) Co., Ltd., have been recognized as small and low-profit enterprises andareeligibleforthecorrespondingtaxpreferentialpolicies. 4. In accordance with the "Announcement of the Ministry of Finance and the State Taxation Administration on the Policy of Additional Deduction for Value-Added Tax by Advanced Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the State Taxation Administration, 2023), advanced manufacturing enterprises are permitted to deduct an additional 5% of the current period's deductible input VAT from their payable VAT amount for the period from January 1, 2023, to December 31, 2027. Thisadditionaldeductionpolicyappliestoourcompany,HebeiChanganAutomobileCo., Ltd.,andDeepalAutomobileTechnologyCo.,Ltd. VII. Notes to Consolidated Financial Statement Items 1. Cash and cash equivalents Item Endingbalance Beginningbalance Cash 37,315.38 18,757.73 Cashatbank 26,357,687,126.70 39,929,836,510.36 Othercash 1,860,301,929.25 911,014,156.74 Cashatfinancialcompany 11,433,808,345.52 13,180,865,840.46 Total 39,651,834,716.85 54,021,735,265.29 Amongthem:totalamountoffundsstoredoverseas 5,790,686,462.75 4,732,403,202.98 Note 1: As of June 30, 2026, the amount of funds held overseas by the Company that are restricted from remittance back to China, specifically in the form of asecurity deposit, totaled RMB21,673,168.44. Note 2: Details of monetary funds held by the Company in related-party financial institutions areprovidedinNoteXIV,Chapter(V). 2. Trading financial assets Item Balanceatendof period Balanceatbeginning ofprioryear Financialassetsmeasuredatfairvaluethroughprofitorloss 128,326,557.59 Investmentsinequityinstruments 98,189,461.12 Derivativefinancialinstruments 30,137,096.47
Page 89
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 88 Item Balanceatendof period Balanceatbeginning ofprioryear Total 128,326,557.59 3. Notes Receivable 1、 Notes receivable shall be presented in separate categories. Item Balanceatendofperiod Balanceatbeginningofprioryear Bankacceptancebills 15,192,400,630.63 19,000,946,520.12 Commercialacceptancebills 10,839,673,699.58 13,996,998,569.07 Total 26,032,074,330.21 32,997,945,089.19
Page 90
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 89 2、 Notes receivable are disclosed by classification according to the method for provision of bad debts. Category Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Baddebtprovision Bookvalue Bookbalance Baddebtprovision Bookvalue Amount Ratio(%) Amount Provision ratio(%) Amount Ratio(%) Amount Provision ratio(%) By credit riskBad debt provision provided by characteristicportfolio 26,032,074,330.21 100.00 26,032,074,330.21 32,997,945,089.19 100.00 32,997,945,089.19 Total 26,032,074,330.21 100.00 26,032,074,330.21 32,997,945,089.19 100.00 32,997,945,089.19
Page 91
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 90 Notes receivable for which provision for bad debts is accrued based on a combinationofcreditriskcharacteristics: Name Balanceatendofperiod Notesreceivable Baddebtprovision Provisionratio(%) Bankacceptancebills 15,192,400,630.63 Commercial acceptancebills 10,839,673,699.58 Total 26,032,074,330.21 3、 Notes receivable pledged by the company at the end of the fiscal period. Item PledgedatendofperiodDepositamount Bankacceptancebills 3,708,173,268.45 Commercialacceptancebills 1,109,431,639.00 Total 4,817,604,907.45 4、 Notes receivable endorsed or discounted by the company at the end of the term that have not yet matured as of the balance sheet date. Item Amountderecognizedatendof period Amountnotderecognizedatendof period Bankacceptancebills 8,224,618,322.30 Commercialacceptancebills Total 8,224,618,322.30 4. Accounts Receivable 1、 Accounts receivable are disclosed by aging. Aging Balanceatendofperiod Balanceatbeginningofprioryear 1Withinoneyear(including1years) 7,476,612,928.04 4,229,226,208.97 1to2years(including2years) 29,216,375.55 18,615,201.37 2to3years(including3years) 1,116,962.40 699,218.40 3yearsandabove 185,072,236.79 185,165,040.70 Subtotal 7,692,018,502.78 4,433,705,669.44 Less:baddebtprovision 191,885,926.53 236,861,022.29 Total 7,500,132,576.25 4,196,844,647.15
Page 92
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 91 2、 Disclosure of accounts receivable classified by the method of provision for bad debts. Category Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Baddebtprovision Bookvalue Bookbalance Baddebtprovision Bookvalue Amount Ratio(%) Amount Provision ratio(%) Amount Ratio (%) Amount Provision ratio(%) Bad debt provision madeindividually 84,710,827.34 1.10 76,932,416.95 90.82 7,778,410.39 134,737,278.68 3.04 117,520,250.03 87.22 17,217,028.65 By credit riskBad debt provision provided by characteristic portfolio 7,607,307,675.44 98.90 114,953,509.58 1.51 7,492,354,165.86 4,298,968,390.76 96.96 119,340,772.26 2.78 4,179,627,618.50 Total 7,692,018,502.78 100.00 191,885,926.53 7,500,132,576.25 4,433,705,669.44 100.00 236,861,022.29 4,196,844,647.15
Page 93
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 92 Accounts receivable for which bad debt provisions are accrued based on a combinationofcreditriskcharacteristics: Name Balanceatendofperiod Accountsreceivable Baddebtprovision Provisionratio(%) 1Withinoneyear(including1years) 7,460,612,928.04 565,224.40 0.01 1to2years(including2years) 29,216,375.55 554,582.40 1.90 2to3years(including3years) 770,189.36 238,991.57 31.03 3yearsandabove 116,708,182.49 113,594,711.21 97.33 Total 7,607,307,675.44 114,953,509.58 3、 Details of the provision for bad debts accrued, reversed, or recovered in the current period. Category Balanceat beginningof prioryear CurrentperiodChangeinamount Balanceatend ofperiodProvision Recoveryor reversal ReversalOrWrite-off Otherchanges Bad debt provision made individually 117,520,250.03 2,966,196.52 37,621,636.56 76,932,416.95 By credit riskBad debt provision provided by characteristic portfolio 119,340,772.26 3,292,602.97 7,679,865.65 114,953,509.58 Total 236,861,022.29 3,292,602.97 10,646,062.17 37,621,636.56 191,885,926.53 4、 Details of accounts receivable and contract assets aggregated by the top five debtors at the end of the reporting period. As of June 30, 2026, the aggregate balance of the top five accounts receivable amounted to RMB 4,913,350,089.41, representing 57.72% of the total ending balanceofaccountsreceivableandcontractassets. 5. Prepayments 1、 Prepayments are presented by aging. Aging Balanceatendofperiod Balanceatbeginningofprioryear Amount Ratio(%) Amount Ratio(%) 1Within one year (including1years) 913,202,107.15 98.25 485,225,383.15 98.56 1to2years(including2years) 11,764,036.34 1.27 3,007,464.47 0.61 2to3years(including3years) 3,891,152.81 0.42 4,024,296.15 0.82 3yearsandabove 534,429.12 0.06 30,000.00 0.01 Total 929,391,725.42 100.00 492,287,143.77 100.00 2、 Details of the top five prepayments by payee at the end of the reporting period. As of June 30, 2026, the combined balance of the top five prepayments amounted toRMB606,524,376.51,representing65.26%ofthetotalprepayments.
Page 94
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 93 6. Other receivables Item Balanceatendofperiod Balanceatbeginningofprior year Otherreceivablesitem 967,587,420.26 882,272,960.21 Total 967,587,420.26 882,272,960.21 1、 Other receivables are disclosed by aging. Aging Balanceatendofperiod Balanceatbeginningofprior year 1Withinoneyear(including1years) 806,823,180.67 752,443,662.80 1to2years(including2years) 139,826,156.48 74,225,094.04 2to3years(including3years) 5,795,957.86 7,617,463.19 3yearsandabove 170,036,640.57 58,940,761.15 Subtotal 1,122,481,935.58 893,226,981.18 Less:baddebtprovision 154,894,515.32 10,954,020.97 Total 967,587,420.26 882,272,960.21
Page 95
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 94 2、 Other receivables are disclosed by classification according to the impairment provision method. Category Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Baddebtprovision Bookvalue Bookbalance Baddebtprovision Bookvalue Amount Ratio (%) Amount Provision ratio(%) Amount Ratio (%) Amount Provision ratio(%) Bad debt provision madeindividually 150,856,080.62 13.44 150,856,080.62 100.00 7,259,741.71 0.81 7,259,741.71 100.00 By credit riskBad debt provision provided by characteristicportfolio 971,625,854.96 86.56 4,038,434.70 0.42 967,587,420.26 885,967,239.47 99.19 3,694,279.26 0.42 882,272,960.21 Total 1,122,481,935.58 100.00 154,894,515.32 967,587,420.26 893,226,981.18 100.00 10,954,020.97 882,272,960.21
Page 96
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 95 Other receivables for which provision for bad debts is accrued based on combinationsofcreditriskcharacteristics: Name Balanceatendofperiod Otherreceivables item Baddebtprovision Provisionratio(%) 1Withinoneyear(including1years) 806,762,316.14 2,032,243.49 0.25 1to2years(including2years) 139,826,156.48 233,557.23 0.17 2to3years(including3years) 5,795,957.86 177,021.47 3.05 3yearsandabove 19,241,424.48 1,595,612.51 8.29 Total 971,625,854.96 4,038,434.70 3、 Provision for Bad Debts Accrual Status Baddebtprovision Stage1 Stage2 Stage3 TotalFuture12Expected creditlossover months Expectedcredit lossovertheentire duration(Nocredit impairment incurred) Expectedcredit lossoverthe entire duration(Credit impairment incurred) Balance at beginning of prior year 3,694,279.26 7,259,741.71 10,954,020.97 Balance at beginning of prior yearincurrentperiod --TransfertoStage2 --TransfertoStage3 --TransferbacktoStage2 --TransferbacktoStage1 Currentperiodprovision 390,669.27 390,669.27 Currentperiodreversal 46,513.83 46,513.83 CurrentperiodReversal CurrentperiodWrite-off Otherchanges 143,596,338.91 143,596,338.91 Balanceatendofperiod 4,038,434.70 150,856,080.62 154,894,515.32 4、 Details of the bad debt provision accrued, reversed, or recovered in the current period. Category Balanceat beginningof prioryear CurrentperiodChangeinamount Balanceatendof periodProvision Recoveryor reversal Reversal OrWrite- off Otherchanges Bad debt provision made individually 7,259,741.71 143,596,338.91 150,856,080.62 By credit riskBad debt provision 3,694,279.26 390,669.27 46,513.83 4,038,434.70
Page 97
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 96 Category Balanceat beginningof prioryear CurrentperiodChangeinamount Balanceatendof periodProvision Recoveryor reversal Reversal OrWrite- off Otherchanges provided by characteristic portfolio Total 10,954,020.97 390,669.27 46,513.83 143,596,338.91 154,894,515.32 5、 Classification by nature of funds Natureofpayments Endofperiodbookbalance Beginningofprioryearbookbalance Subsidyreceivable 338,156,514.00 306,292,934.00 Land receivableReserve collection funds 140,042,216.57 249,001,679.00 Pettycash 102,143,584.46 57,611,056.67 Depositsandguarantees 34,591,223.05 40,499,372.49 Advance equity investment payment 617,441.00 3,112,440.00 Other 506,930,956.50 236,709,499.02 Total 1,122,481,935.58 893,226,981.18 6、 Details of the top five other receivables by debtor as of the end of the period. As ofJune30,2026,thecombinedendingbalanceofthetopfive otherreceivables amountedto678,544,890.27RMB. Thisamountrepresents60.45%ofthetotalendingbalanceofotherreceivables.
Page 98
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 97 7. Inventory 1、 Inventory classification Category Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Inventoryfallingprice reserve/Contract performancecost impairmentprovision Bookvalue Bookbalance Inventoryfallingprice reserve/Contract performancecost impairmentprovision Bookvalue Rawmaterials 1,781,346,204.46 59,466,407.69 1,721,879,796.77 1,135,459,985.00 56,372,428.95 1,079,087,556.05 Materialsintransit 105,260,222.99 105,260,222.99 133,511,351.78 - 133,511,351.78 Entrusted processing materials - - - 0.00 Workinprogress 1,509,259,241.38 123,998,385.08 1,385,260,856.30 1,703,295,662.07 82,615,815.74 1,620,679,846.33 Finishedgoods 20,045,091,200.95 501,893,741.66 19,543,197,459.29 19,536,728,819.47 189,212,925.86 19,347,515,893.61 Other 359,786,018.02 359,786,018.02 337,491,722.87 - 337,491,722.87 Total 23,800,742,887.80 685,358,534.43 23,115,384,353.37 22,846,487,541.19 328,201,170.55 22,518,286,370.64
Page 99
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 98 2、 Provision for decline in inventory value and provision for impairment of contract fulfillment costs Category Balanceatbeginningof prioryear Increasesfortheperiodamount Decreasesfortheperiodamount Balanceatendofperiod Provision Other Reversalorwrite-off Other Rawmaterials 56,372,428.95 7,334,646.95 4,448,635.87 8,689,304.08 59,466,407.69 Workinprogress 82,615,815.74 110,006,026.15 68,623,456.81 123,998,385.08 Finishedgoods 189,212,925.86 401,062,187.28 2,032,431.46 90,413,802.94 501,893,741.66 Total 328,201,170.55 518,402,860.38 6,481,067.33 167,726,563.83 685,358,534.43 The Company bases its provision for inventory obsolescence on whether the cost of inventory exceeds its net realizable value. Net realizable value refers to the estimated selling price in the ordinary course of business less the estimated costs of completion, estimated selling expenses, and related taxes. The reversal or write-off of the inventory provision for decline in value this year is due to the increase in the net realizable value of inventory previouslyprovidedforinprioryearsorthesaleofsuchinventoryduringthecurrentyear.
Page 100
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 99 8. Contract Assets 1、 Status of Contract Assets Ite m Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Impairment provision Bookvalue Bookbalance Impairment provision Bookvalue C on tra ct as set s 819,652,376.23 660,966,257.16 158,686,119.07 822,590,180.23 667,318,643.16 155,271,537.07 To tal 819,652,376.23 660,966,257.16 158,686,119.07 822,590,180.23 667,318,643.16 155,271,537.07 2、 The amounts and reasons for significant changes in book value during the reporting period. Item Changeinamount Reasonforchange Newenergysubsidies 3,414,582.00 Recoveryofpartialamounts,reversalofimpairmentprovision Total 3,414,582.00
Page 101
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 100 3、 Contract assets are disclosed by classification according to the impairment accrual method. Category Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Impairmentprovision Bookvalue Bookbalance Impairmentprovision Bookvalue Amount Ratio (%) Amount Provision ratio(%) Amount Ratio(%) Amount Provision ratio(%) Impairment provision provided onindividualbasis 819,652,376.23 100.00 660,966,257.16 80.64 158,686,119.07 822,590,180.23 100.00 667,318,643.16 81.12 155,271,537.07 Total 819,652,376.23 100.00 660,966,257.16 158,686,119.07 822,590,180.23 100.00 667,318,643.16 155,271,537.07
Page 102
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 101 4、 Provision for impairment of contract assets for the current period Item Balanceat beginningof prioryear CurrentperiodChangeinamount Balanceatend ofperiodCurrent period provision Currentperiod reversal Current periodReversal/Write-off Other changes Contract assets 667,318,643.16 6,352,386.00 660,966,257.16 Total 667,318,643.16 6,352,386.00 660,966,257.16 9. Non-current assets due within one year Item Balanceatendofperiod Balanceatbeginningofprior year Long-termreceivablesduewithinoneyear 127,410,633.45 254,821,266.90 Timedeposits andcertificates ofdepositduewithinone year 2,732,188,471.92 1,235,886,944.44 Total 2,859,599,105.37 1,490,708,211.34 10. Other current assets Item Balanceatendofperiod Balanceatbeginningofprior year Inputtaxtobededucted 3,611,458,086.18 3,585,954,836.25 Taxespaidinadvance 618,496,933.62 755,648,767.95 Timedepositsandothers 8,196,211,026.34 7,456,317,494.47 Total 12,426,166,046.14 11,797,921,098.67
Page 103
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 102 11. Long-term receivables 1、 Status of long-term receivables Item Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Baddebtprovision Bookvalue Bookbalance Baddebtprovision Bookvalue Long-termreceivables 1,401,516,967.94 1,401,516,967.94 1,528,927,601.39 1,528,927,601.39 Subtotal 1,401,516,967.94 1,401,516,967.94 1,528,927,601.39 1,528,927,601.39 Less:portionduewithinoneyear 127,410,633.45 127,410,633.45 254,821,266.90 254,821,266.90 Total 1,274,106,334.49 1,274,106,334.49 1,274,106,334.49 1,274,106,334.49
Page 104
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 103 12. Long-term equity investment 1、 Status of long-term equity investments Investeeunit Balanceattheendofthe previousyear (bookvalue) Impairmentprovision Balanceattheendofthe previousyear Changesinthecurrent period Closingbalance (bookvalue) Impairment provision Closingbalance 1.Jointventure NanchangJianglingInvestmentCo.,Ltd. 2,662,903,407.38 152,172,675.29 2,815,076,082.67 ChanganMazdaAutomobileCo.,Ltd. 638,012,017.99 -4,326,613.65 633,685,404.34 ChanganMazdaEngineCo.,Ltd. 809,563,220.38 -152,201.12 809,411,019.26 ChanganFordAutomobileCo.,Ltd. 1,177,568,078.19 130,698,343.83 1,308,266,422.02 Subtotal 5,288,046,723.94 278,392,204.35 5,566,438,928.29 2.Jointventure ChongqingChanganKuayueVehicleCo.,Ltd. 258,998,406.22 -11,954,505.83 247,043,900.39 ChongqingChang'anKuayueVehicleMarketingCo.,Ltd. 1,239,482.34 -1,239,482.34 ChanganAutomobileFinanceCo.,Ltd. 5,603,721,114.14 188,068,528.00 5,791,789,642.14 NanjingChelaiTravelTechnologyCo.,Ltd. 326,831.47 14.86 326,846.33 HunanGuoxinSemiconductorTechnologyCo.,Ltd. 28,211,161.19 -455,662.26 27,755,498.93 Nanjing Lingxing Equity Investment Partnership (Limited Partnership) 3,123,552,090.24 -29,504.04 3,123,522,586.20 NanjingLingxingEquityInvestmentManagementCo.,Ltd. 1,094,810.00 -6,382.78 1,088,427.22 CATARCIntelligentDrivingTechnologyCo.,Ltd. 420,296,556.11 -1,746,697.00 418,549,859.11 Chongqing Changxin Zhiji Private Equity Investment Fund Partnership(LimitedPartnership) 264,750,946.49 -12,171,756.87 252,579,189.62 Anhe Chongqing Dingfeng Automotive Contractual Private EquityInvestmentFund 62,063,111.61 78.47 62,063,190.08 AvatrTechnology(Chongqing)Co.,Ltd. 3,686,300,152.84 -649,433,721.68 3,036,866,431.16
Page 105
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 104 Investeeunit Balanceattheendofthe previousyear (bookvalue) Impairmentprovision Balanceattheendofthe previousyear Changesinthecurrent period Closingbalance (bookvalue) Impairment provision Closingbalance Chongqing Chang'an Innovation Private Equity InvestmentFund Partnership(LimitedPartnership) 167,691,152.12 -521,683.78 167,169,468.34 ChongqingChangyuPrivateEquityInvestmentFundPartnership (LimitedPartnership) 75,033,392.06 -974,982.65 74,058,409.41 HangzhouCherryIntelligentTechnologyCo.,Ltd. WesternVehicleNetwork(Chongqing)Co.,Ltd. 4,446,554.47 -491,007.02 3,955,547.45 Anhe (Chongqing) Private Equity Investment Fund Management Co.,Ltd. 9,641,779.73 -1,643,491.58 7,998,288.15 ChongqingChangxianIntelligentTechnologyCo.,Ltd. 126,101,849.17 1,048,221.03 127,150,070.20 ChanganFordNewEnergyAutomotiveTechnologyCo.,Ltd. 153,148,103.41 697,535.63 153,845,639.04 ChenzhiAnqi(Chongqing)CircularTechnologyCo.,Ltd. 21,612,792.71 -528,701.99 21,084,090.72 ChanganMazdaAutomobileCo.,Ltd. 101,599,499.67 19,623,360.16 121,222,859.83 ChongqingAndaSemiconductorCo.,Ltd. 41,662,428.19 -1,441,425.02 40,221,003.17 ChongqingWutongVehicleNetworkingTechnologyCo.,Ltd. 86,061,012.40 1,005,676.55 87,066,688.95 FAWCATLPowerBatteryCo.,Ltd. 360,274,829.93 38,390,048.06 398,664,877.99 ChanganTimesNewEnergyBatteryCo.,Ltd. 540,807,602.45 276,129,152.38 816,936,754.83 Chongqing Changyuxinhe Private Equity Investment Fund Partnership(LimitedPartnership) 2,448,636.53 2,448,636.53 Subtotal 15,138,635,658.96 -155,227,753.17 14,983,407,905.79 Total 20,426,682,382.90 123,164,451.18 20,549,846,834.08 13. Investments in other equity instruments 1、 Status of investments in other equity instruments Itemname Balanceat beginningof Changesduringthecurrentperiod Balanceatend ofperiod Dividend income Cumulativegains recognizedin Cumulativelosses recognizedin Reasonfordesignationas measuredatfairvalue
Page 106
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 105 Additional investment Gain recognizedin other comprehensive incomeforthe period Loss recognizedin other comprehensive incomeforthe period China South Industries GroupFinanceCo.,Ltd. 351,000,000.00 351,000,000.00 193,979,200.00 Non-listed investments in equityinstruments Guoqi (Beijing) Intelligent Connected Vehicle Research Institute Co., Ltd. 50,000,000.00 50,000,000.00 Non-listed investments in equityinstruments GuoLian Automobile Power Battery Research InstituteCo.,Ltd. 32,000,000.00 32,000,000.00 8,000,000.00 Non-listed investments in equityinstruments Changan Financing LeasingCo.,Ltd. 36,000,000.00 36,000,000.00 5,448,000.00 Non-listed investments in equityinstruments Zhongfa Lian InvestmentCo.,Ltd. 14,801,858.72 14,801,858.72 15,041,910.38 6,198,141.28 Non-listed investments in equityinstruments Guoqi(Beijing)Automobile Lightweight Technology Research Institute Co., Ltd. 4,400,000.00 4,400,000.00 1,400,000.00 Non-listed investments in equityinstruments Chenchi TechnologyCo., Ltd. 97,000,000.00 97,000,000.00 5,461,538.00 Non-listed investments in equityinstruments Zhongqi New Energy Battery Technology Co., Ltd. 107,000,000.00 107,000,000.00 4,123,985.46 Non-listed investments in equityinstruments Total 692,201,858.72 692,201,858.72 15,041,910.38 206,288,738.00 18,322,126.74
Page 107
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 106 14. Investment property 1、 Investment property measured using the cost model. Item Buildingsandstructures Total 1．Originalcarryingamount (1)Balanceatbeginningofprioryear 10,050,100.00 10,050,100.00 (2)Increasesfortheperiodamount (3)Decreasesfortheperiodamount (4)Balanceatendofperiod 10,050,100.00 10,050,100.00 2Accumulated depreciation and accumulated amortization (1)Balanceatbeginningofprioryear 4,307,519.64 4,307,519.64 (2)Increasesfortheperiodamount 113,355.78 113,355.78 —Provisionoramortization 113,355.78 113,355.78 (3)Decreasesfortheperiodamount (4)Balanceatendofperiod 4,420,875.42 4,420,875.42 3Impairmentprovision (1)Balanceatbeginningofprioryear (2)Increasesfortheperiodamount (3)Decreasesfortheperiodamount (4)Balanceatendofperiod 4Bookvalue (1)Carryingamountatendofperiod 5,629,224.58 5,629,224.58 (2)Beginningofprioryearbookvalue 5,742,580.36 5,742,580.36 15. Fixed assets 1、 Fixed Assets and Disposal of Fixed Assets Item Balanceatendofperiod Balanceatbeginningofprior year Fixedassets 22,310,782,207.86 22,048,786,066.87 Total 22,310,782,207.86 22,048,786,066.87
Page 108
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 107 2、 Status of Fixed Assets Item Buildingsandstructures Machineryandequipment Transportationequipment Other Total 1.Originalcarryingamount (1)Balanceatbeginningofprioryear 11,863,699,627.91 29,066,973,374.17 289,606,267.82 10,641,034,843.78 51,861,314,113.68 (2)Increasesfortheperiodamount 565,884,545.86 1,751,877,569.16 3,384,982.54 535,375,403.88 2,856,522,501.44 —Acquisition 49,201,671.85 16,390,657.44 65,592,329.29 —Transferred from construction inprogress 81,522,937.46 370,305,084.32 2,678,708.95 461,607,242.48 916,113,973.21 —Increase from business combination 484,361,608.40 1,332,370,812.99 706,273.59 57,373,662.07 1,874,812,357.05 —Exchangeratechanges 3,841.89 3,841.89 (3)Decreasesfortheperiodamount 61,440,048.44 893,423,451.35 2,937,272.81 428,447,916.26 1,386,248,688.86 —Disposalorwrite-off 882,406,940.15 2,937,272.81 405,177,964.41 1,290,522,177.37 —Governmentsubsidies 4,811,273.58 2,756,072.58 7,567,346.16 —Exchangeratechanges 61,440,048.44 6,205,237.62 20,513,879.27 88,159,165.33 (4)Balanceatendofperiod 12,368,144,125.33 29,925,427,491.98 290,053,977.55 10,747,962,331.40 53,331,587,926.26 2.Accumulateddepreciation (1)Balanceatbeginningofprioryear 3,494,586,531.67 18,582,827,170.16 167,485,725.13 5,622,668,213.86 27,867,567,640.82 (2)Increasesfortheperiodamount 319,076,938.43 1,716,195,946.16 2,004,634.71 370,953,924.14 2,408,231,443.44 —Provision 208,217,792.01 838,706,723.08 1,630,239.37 321,962,586.01 1,370,517,340.47 —Exchangeratechanges 1,548.08 1,548.08 —Increase from business combination 110,859,146.42 877,489,223.08 374,395.34 48,989,790.05 1,037,712,554.89 (3)Decreasesfortheperiodamount 2,042,464.51 731,453,927.28 2,160,252.88 310,910,287.32 1,046,566,931.99
Page 109
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 108 Item Buildingsandstructures Machineryandequipment Transportationequipment Other Total —Disposalorwrite-off 727,392,902.36 2,160,252.88 310,910,287.32 1,040,463,442.56 —Exchangeratechanges 2,042,464.51 4,061,024.92 6,103,489.43 (4)Balanceatendofperiod 3,811,621,005.59 19,567,569,189.04 167,330,106.96 5,682,711,850.68 29,229,232,152.27 3.Impairmentprovision (1)Balanceatbeginningofprioryear 36,561,133.91 1,744,212,082.49 890,946.37 163,296,243.22 1,944,960,405.99 (2)Increasesfortheperiodamount 4,154,546.98 52,821,887.23 2,006.25 805,065.34 57,783,505.80 —Provision 1,219,907.32 535,027.32 1,754,934.64 —Increase from business combination 4,154,546.98 51,601,979.91 2,006.25 270,038.02 56,028,571.16 (3)Decreasesfortheperiodamount 132,219,196.51 497,731.99 78,453,417.16 211,170,345.66 —Disposalorwrite-off 132,219,196.51 497,731.99 78,453,417.16 211,170,345.66 (4)Balanceatendofperiod 40,715,680.89 1,664,814,773.21 395,220.63 85,647,891.40 1,791,573,566.13 4.Bookvalue (1)Carryingamountatendofperiod 8,515,807,438.85 8,693,043,529.73 122,328,649.96 4,979,602,589.32 22,310,782,207.86 (2)Beginningofprioryearbookvalue 8,332,551,962.33 8,739,934,121.52 121,229,596.32 4,855,070,386.70 22,048,786,066.87
Page 110
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 109 3、 Fixed assets temporarily idle as of June 30, 2026, had a book value of RMB 20,625,406.47 (as of December 2025). Fixed assets amounting to RMB 165,186,236.58 as of the 31st. Temporarily idle duetoproductupgradesandreplacements. 4、 Status of fixed assets leased out under operating leases. Item Carryingamountatendofperiod Carryingamountatbeginningof period Buildingsandstructures 90,425,664.88 2,161,991,739.34 Machineryandequipment 117,882,085.34 Transportvehicles Otherequipment 6,720,938.20 5、 Status of fixed assets for which property ownership certificates have not been obtained. AsofJune30,2026,theCompanyholdsnofixedassetslackingtitlecertificates. 16. Construction in progress 1、 Construction in progress and engineering materials Item Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Impairment provision Bookvalue Bookbalance Impairment provision Bookvalue Construction inprogress 1,241,117,877.05 26,550,989.64 1,214,566,887.41 1,056,595,927.21 27,861,352.87 1,028,734,574.34 Total 1,241,117,877.05 26,550,989.64 1,214,566,887.41 1,056,595,927.21 27,861,352.87 1,028,734,574.34 2、 Status of ongoing construction Items Item Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Impairment provision Bookvalue Bookbalance Impairment provision Bookvalue Engineering constructionitem 206,526,678.29 206,526,678.29 173,720,868.36 173,720,868.36 Engine technical transformationItem 29,302,536.02 20,921,684.06 8,380,851.96 29,931,666.41 20,921,684.06 9,009,982.35 Production line construction and technical transformation item 281,151,984.18 281,151,984.18 438,511,351.27 438,511,351.27 OtherItem 724,136,678.56 5,629,305.58 718,507,372.98 414,432,041.17 6,939,668.81 407,492,372.36 Total 1,241,117,877.05 26,550,989.64 1,214,566,887.41 1,056,595,927.21 27,861,352.87 1,028,734,574.34
Page 111
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 110 3、 Changes in significant construction Items in progress during the current period. Itemname Budgetamount Balanceat beginningof prioryear Increasesfor theperiod amount Amount transferredto fixedassets fortheperiod Other decreases forthe period Balanceatend ofperiod Accumulated project investment as percentage ofbudget(%) Project progress (%) Cumulative amountof interest capitalized Ofwhich: interest capitalizedfor the periodAmount capitalized Interest capitalization rateforthe period(%) Sourceof funds Engineering construction item 6,674,709,893.50 173,720,868.36 140,766,635.73 105,001,801.37 209,485,702.72 14.77 14.77 Self-owned funds Engine technical transformation project 447,175,000.00 29,931,666.41 10,618,657.56 11,247,787.95 29,302,536.02 80.47 80.47 Self-owned funds Production line construction and technical transformation item 7,807,867,000.00 438,511,351.27 393,967,529.37 510,800,130.06 321,678,750.58 35.17 35.17 Self-raised and additional issuance OtherItem 414,432,041.17 561,609,676.98 289,064,253.83 6,326,576.59 680,650,887.73 Self-raised and additional issuance Total 1,056,595,927.21 1,106,962,499.64 916,113,973.21 6,326,576.59 1,241,117,877.05
Page 112
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 111 4、 Details of the impairment provision accrued for construction in progress in the current period. Item Balanceat beginningof prioryear Changesduringthecurrentperiod Balanceatend ofperiod Reasonfor provisionProvision Transferred out Other Engine technical transformation project 20,921,684.06 20,921,684.06 OtherItem 6,939,668.81 1,310,363.23 5,629,305.58 Total 27,861,352.87 1,310,363.23 26,550,989.64 17. Right-of-use asset 1、 Status of right-of-use assets Item Buildingsandstructures Machineryand equipment Total 1．Originalcarryingamount (1)Balanceatbeginningofprioryear 594,981,585.09 14,367,603.77 609,349,188.86 (2)Increasesfortheperiodamount 20,756,756.34 20,756,756.34 —Newleases 20,731,292.95 20,731,292.95 —Exchangeratechanges 25,463.39 25,463.39 (3)Decreasesfortheperiodamount 2,320,339.96 2,320,339.96 —Disposal 1,942,155.36 1,942,155.36 —OtherDecrease 378,184.60 378,184.60 (4)Balanceatendofperiod 613,418,001.47 14,367,603.77 627,785,605.24 2Accumulateddepreciation (1)Balanceatbeginningofprioryear 208,308,512.14 4,435,417.87 212,743,930.01 (2)Increasesfortheperiodamount 70,259,041.88 870,662.04 71,129,703.92 —Provision 70,245,399.88 870,662.04 71,116,061.92 —Exchangeratechanges 13,642.00 13,642.00 —Increase from business combination (3)Decreasesfortheperiodamount 1,971,032.13 1,971,032.13 —Transferredtofixedassets —Disposal 1,942,155.36 1,942,155.36 —OtherDecrease 28,876.77 28,876.77 (4)Balanceatendofperiod 276,596,521.89 5,306,079.91 281,902,601.80 3Impairmentprovision (1)Balanceatbeginningofprioryear (2)Increasesfortheperiodamount —Provision (3)Decreasesfortheperiodamount —Disposal (4)Balanceatendofperiod
Page 113
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 112 Item Buildingsandstructures Machineryand equipment Total 4Bookvalue (1)Carryingamountatendofperiod 336,821,479.58 9,061,523.86 345,883,003.44 (2)Beginningofprioryearbookvalue 386,673,072.95 9,932,185.90 396,605,258.85
Page 114
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 113 18. Intangible assets 1、 Status of Intangible Assets Item Landuserights Software Trademarkrights Non-patentedtechnology Patented technology Total 1．Originalcarryingamount (1)Balanceatbeginningofprioryear 2,447,798,267.89 982,952,871.84 2,649,538,294.87 26,088,185,410.01 85,581,514.70 32,254,056,359.31 (2)Increasesfortheperiodamount 144,086,209.05 115,288,008.13 6,496,301.03 4,262,757,258.48 7,034,008.30 4,535,661,784.99 —Acquisition 13,145,568.10 6,435,946.06 19,581,514.16 —InternalR&D 2,936,505,462.00 2,936,505,462.00 —Exchangeratechanges 60,354.97 60,354.97 —Increasefrombusinesscombination 144,086,209.05 102,142,440.03 1,326,251,796.48 7,034,008.30 1,579,514,453.86 (3)Decreasesfortheperiodamount 677,987.91 677,987.91 —Disposal —Exchangeratechanges 677,987.91 677,987.91 (4)Balanceatendofperiod 2,591,884,476.94 1,097,562,892.06 2,656,034,595.90 30,350,942,668.49 92,615,523.00 36,789,040,156.39 2Accumulatedamortization (1)Balanceatbeginningofprioryear 489,411,233.43 835,133,054.13 926,040,739.02 12,223,961,561.20 32,802,297.88 14,507,348,885.66 (2)Increasesfortheperiodamount 51,137,982.90 94,071,710.65 124,304,361.89 2,481,513,742.69 11,342,618.19 2,762,370,416.32 —Provision 26,285,090.85 33,300,079.97 124,273,444.60 1,736,256,969.21 4,308,609.89 1,924,424,194.52 —Increasefrombusinesscombination 24,852,892.05 60,771,630.68 745,256,773.48 7,034,008.30 837,915,304.51 —Exchangeratechanges 30,917.29 30,917.29 —Freetransfer (3)Decreasesfortheperiodamount
Page 115
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 114 Item Landuserights Software Trademarkrights Non-patentedtechnology Patented technology Total —Disposal —Exchangeratechanges (4)Balanceatendofperiod 540,549,216.33 929,204,764.78 1,050,345,100.91 14,705,475,303.89 44,144,916.07 17,269,719,301.98 3Impairmentprovision (1)Balanceatbeginningofprioryear 23,617,923.17 22,381,216.63 475,609,566.32 521,608,706.12 (2)Increasesfortheperiodamount 13,460,620.16 580,995,023.00 594,455,643.16 —Increasefrombusinesscombination 13,460,620.16 580,995,023.00 594,455,643.16 (3)Decreasesfortheperiodamount (4)Balanceatendofperiod 37,078,543.33 22,381,216.63 1,056,604,589.32 1,116,064,349.28 4Bookvalue (1)Carryingamountatendofperiod 2,051,335,260.61 131,279,583.95 1,583,308,278.36 14,588,862,775.28 48,470,606.93 18,403,256,505.13 (2)Beginningofprioryearbookvalue 1,958,387,034.46 124,201,894.54 1,701,116,339.22 13,388,614,282.49 52,779,216.82 17,225,098,767.53 2、 Status of land use rights for which property title certificates have not been obtained. AsofJune30,2026,theCompanyholdsnolanduserightsforwhichthetitlecertificateshavenotbeenfinalized.
Page 116
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 115 19. Goodwill 1、 Changes in Goodwill Nameofinvesteeor mattersforming goodwill Balanceat beginningof prioryear Increasesfortheperiod Decreasesforthe period Balanceatendof periodFormedfrom business combination Other Disposal Other Original carrying amount Nanjing Changan AutomobileCo.,Ltd. 73,465,335.00 73,465,335.00 Hebei Changan AutomobileCo.,Ltd. 9,804,394.00 9,804,394.00 Deepal Automobile TechnologyCo.,Ltd. 1,800,926,049.16 1,800,926,049.16 Jiangling Holding Co., Ltd. 185,387,879.18 185,387,879.18 Subtotal 1,884,195,778.16 185,387,879.18 2,069,583,657.34 Impairmentprovision Nanjing Changan AutomobileCo.,Ltd. 73,465,335.00 73,465,335.00 Subtotal 73,465,335.00 73,465,335.00 Bookvalue 1,810,730,443.16 185,387,879.18 1,996,118,322.34 20. Long-term deferred expenses Item Balanceat beginningof prioryear Increasesforthe periodamount Amortization amountforthe period Otherdecreases Balanceatendof period Extended warranty premium 5,435,297.36 3,886,104.50 3,083,295.72 6,238,106.14 Other 11,285,642.92 4,663,617.64 1,458,204.19 14,491,056.37 Total 16,720,940.28 8,549,722.14 4,541,499.91 20,729,162.51 21. Deferred tax assets and deferred tax liabilities 1、 Unoffset deferred tax assets Item Balanceatendofperiod Balanceatbeginningofprioryear Deductibletemporary differences Deferredtaxassets Deductibletemporary differences Deferredtaxassets Asset impairment provision 2,406,788,004.31 367,613,630.15 2,470,368,361.82 377,963,078.08 Accrued expenses andprovisions 11,350,825,307.41 1,718,579,999.62 10,862,131,182.01 1,645,402,612.29 Unpaid technology development fees and advertisingexpenses 192,834,530.79 28,925,179.62 26,127,221.76 3,919,083.27 Deferredincome 2,477,854,092.26 413,744,650.86 3,233,350,682.85 526,405,634.13 Unpaid wages, bonusesandothers 7,119,354,566.37 1,098,469,114.63 6,598,700,635.31 1,000,772,933.93
Page 117
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 116 Item Balanceatendofperiod Balanceatbeginningofprioryear Deductibletemporary differences Deferredtaxassets Deductibletemporary differences Deferredtaxassets Changes in fair value offinancialassets 4,123,985.46 1,030,996.37 4,123,985.46 1,030,996.37 Total 23,551,780,486.60 3,628,363,571.25 23,194,802,069.21 3,555,494,338.07 2、 Unoffset deferred tax liabilities Item Balanceatendofperiod Balanceatbeginningofprioryear Taxabletemporary differences Deferredtax liabilities Taxabletemporary differences Deferredtax liabilities Changes in fair value offinancialassets 18,219,493.88 4,554,873.47 192,090,596.72 28,813,589.51 Non-sameUnder common controlFair value adjustment from business combination 7,098,686,172.44 1,104,485,654.71 7,156,759,800.00 1,073,513,970.00 Long-term equity investments 1,635,326,272.54 245,298,940.88 1,635,326,272.54 245,298,940.88 Other 1,756,825,403.32 268,646,787.51 1,868,672,681.02 282,840,389.55 Total 10,509,057,342.18 1,622,986,256.57 10,852,849,350.28 1,630,466,889.94 3、 Deferred tax assets or liabilities presented on a net basis after offsetting. Item Endofperiod Beginningofprioryear Offsetofdeferred taxassetsand liabilitiesOffset Amount Deferredafter offsetIncometax assetsorliabilities balance Offsetofdeferredtax assetsand liabilitiesOffset Amount Deferredafter offsetIncometax assetsorliabilities balance Deferredtaxassets 69,254,096.74 3,559,109,474.51 60,023,567.50 3,495,470,770.57 Deferred tax liabilities 69,254,096.74 1,553,732,159.83 60,023,567.50 1,570,443,322.44 4、 Details of unrecognized deferred tax assets Item Balanceatendofperiod Balanceatbeginningof prioryear Deductibletemporarydifferences 2,220,506,134.18 1,267,396,960.13 Deductiblelosses 9,411,418,640.90 9,162,011,203.99 Total 11,631,924,775.08 10,429,408,164.12 5、 The deductible losses of unrecognized deferred tax assets will expire in the following years. Year Balanceatendofperiod Balanceatbeginningof prioryear Remarks 2026year 33,027,475.40 33,027,475.40 2027year 140,492,322.34 166,700,752.95
Page 118
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 117 Year Balanceatendofperiod Balanceatbeginningof prioryear Remarks 2028year 6,539,394.87 6,539,394.87 2029Oneyearandbeyond 9,231,359,448.29 8,955,743,580.77 Total 9,411,418,640.90 9,162,011,203.99 22. Other non-current assets Item Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Impairment provision Bookvalue Bookbalance Impairment provision Bookvalue Large certificates of deposit and time deposits 688,665,712.78 688,665,712.78 2,141,246,110.90 2,141,246,110.90 Advance project payments 450,000,000.00 450,000,000.00 450,000,000.00 450,000,000.00 Total 1,138,665,712.78 1,138,665,712.78 2,591,246,110.90 2,591,246,110.90
Page 119
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 118 23. Assets subject to restrictions on ownership or usage rights. Item Endofperiod Beginningofprioryear Bookbalance Bookvalue Restrictiontype Restrictionstatus Bookbalance Bookvalue Restrictiontype Restrictionstatus Monetaryfunds 1,172,965,121.02 1,172,965,121.02 Guarantee deposit andother Guaranteedepositand other 1,028,564,112.54 1,028,564,112.54 Guarantee deposit andother Guarantee deposit andother Notesreceivable 4,817,604,907.45 4,817,604,907.45 Billpledge Billpledge 5,319,644,475.35 5,319,644,475.35 Billpledge Billpledge Total 5,990,570,028.47 5,990,570,028.47 6,348,208,587.89 6,348,208,587.89
Page 120
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 119 24. Short-term borrowings 1、 Classification of Short-term Borrowings Item Balanceatendofperiod Balanceatbeginningofprior year Creditloans 43,728,914.90 512,275,913.93 Total 43,728,914.90 512,275,913.93 Note:AsofJune30,2026,theannualinterestratefortheaforementionedloanis2.11%. AsofJune30,2026,therewerenooverdueshort-termborrowings. 25. Notes Payable Type Balanceatendofperiod Balanceatbeginningofprior year Bankacceptancebills 36,691,069,572.39 43,111,562,471.54 Commercialacceptancebills 923,621,889.02 867,961,309.25 Total 37,614,691,461.41 43,979,523,780.79 26. Accounts Payable 1、 Accounts Payable Listing Item Balanceatendofperiod Balanceatbeginningofprioryear Payableforgoods 23,676,006,045.62 29,841,076,563.69 Total 23,676,006,045.62 29,841,076,563.69 Note: As of June 30, 2026, there were no significant accounts payable with an agingperiodexceedingoneyear. 27. Deferred revenue 1、 Presentation of advance receipts Item Balanceatendofperiod Balanceatbeginningofprioryear Advancerentreceived 408,273.22 408,273.22 Advancereceipts 44,371,970.84 Total 44,780,244.06 408,273.22 28. Contract liabilities 1、 Status of Contract Liabilities Item Balanceatendofperiod Balanceatbeginningofprior year Advancereceipts 6,801,256,558.23 5,356,608,912.37 Advanceservicefeesreceived 1,617,519,396.46 1,552,000,145.85 Total 8,418,775,954.69 6,908,609,058.22 29. Employee benefits payable 1、 Presentation of Employee Benefits Payable Item Balanceatbeginning ofprioryear Increasesforthe period Decreasesforthe period Balanceatendof period
Page 121
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 120 Item Balanceatbeginning ofprioryear Increasesforthe period Decreasesforthe period Balanceatendof period Short-term employee benefits 4,118,868,610.11 4,937,831,170.48 7,218,947,422.61 1,837,752,357.98 Post-employment benefits-Defined contributionplan 87,410,871.40 624,134,329.68 603,445,452.77 108,099,748.31 Terminationbenefits 31,221,863.05 11,676,441.15 33,170,686.82 9,727,617.38 Total 4,237,501,344.56 5,573,641,941.31 7,855,563,562.20 1,955,579,723.67 2、 Disclosure of short-term employee benefits Item Balanceat beginningofprior year Increasesforthe period Decreasesforthe period Balanceatendof period (1) Wages, bonuses, allowancesandsubsidies 3,565,693,052.95 3,861,830,096.99 6,021,247,178.94 1,406,275,971.00 (2) Employee welfare expenses 7,737,046.84 156,633,299.39 153,607,657.37 10,762,688.86 (3)Socialinsurancefees 49,041,643.82 405,474,102.28 396,308,120.82 58,207,625.28 Including: medical insurance 21,260,074.54 365,291,522.25 354,979,492.85 31,572,103.94 Work injury insurancefees 10,576,951.05 38,933,616.62 38,316,837.00 11,193,730.67 Maternity insurance fees 2,033,719.20 749,727.96 2,656,300.62 127,146.54 Other 15,170,899.03 499,235.45 355,490.35 15,314,644.13 (4)Housingprovidentfund 88,999,656.96 466,150,520.02 492,484,974.90 62,665,202.08 (5) Labor union fees and employeeeducationexpenses 407,397,209.54 47,743,151.80 155,299,490.58 299,840,870.76 Total 4,118,868,610.11 4,937,831,170.48 7,218,947,422.61 1,837,752,357.98 3、 Disclosure of defined contribution plans Item Balanceat beginningofprior year Increasesforthe period Decreasesforthe period Balanceatendof period Basicpensioninsurance 77,911,926.05 604,277,027.02 584,862,551.25 97,326,401.82 Unemploymentinsurancefees 9,498,945.35 19,857,302.66 18,582,901.52 10,773,346.49 Total 87,410,871.40 624,134,329.68 603,445,452.77 108,099,748.31 30. Taxes payable Taxitems Balanceatendofperiod Balanceatbeginningofprioryear Value-addedtax 102,622,190.54 384,399,469.16 Corporateincometax 135,764,770.65 229,680,979.77 Consumptiontax 165,526,318.75 86,908,290.34 Urban maintenance and construction tax and educationsurcharge 18,020,471.90 60,392,301.66 Other 58,503,157.47 91,612,765.90
Page 122
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 121 Taxitems Balanceatendofperiod Balanceatbeginningofprioryear Total 480,436,909.31 852,993,806.83 31. Other payables Item Balanceatendofperiod Balanceatbeginningofprior year Dividendspayable 1,138,608,888.49 Otherpayables 6,133,178,223.55 5,871,006,412.33 Total 7,271,787,112.04 5,871,006,412.33 1、 Dividends Payable Item Closingbalance Balanceattheendofthe previousyear Commonstockdividends 1,138,608,888.49 Total 1,138,608,888.49 2、 Other payables (1)Presentedbynatureofpayment Item Balanceatendofperiod Balanceatbeginningof prioryear Payments for fixed assets, intangible assets and project deposits 1,223,075,135.56 1,859,466,071.62 Customerandsupplierdeposits 492,436,081.95 583,101,361.16 Warehousingandtransportationexpenses 729,407,167.24 667,558,777.74 Advertisingexpenses 661,170,301.45 599,206,406.43 Repairandprocessingexpenses 597,602,340.49 349,430,390.33 Treasurysharerepurchaseobligation 3,395,829.33 Other 2,429,487,196.86 1,808,847,575.72 Total 6,133,178,223.55 5,871,006,412.33 32. Non-current liabilities due within one year Item Balanceatendofperiod Balanceatbeginningofprioryear Long-termborrowingsduewithinoneyear 36,000,000.00 Definedbenefitplanduewithinoneyear 348,363.00 789,000.00 Entrustedloansduewithinoneyear 500,388,888.89 500,427,777.78 Leaseliabilitiesduewithinoneyear 187,310,267.79 161,478,036.89 Provisionsduewithinoneyear 474,500.00 Total 688,522,019.68 698,694,814.67 33. Other current liabilities Item Balanceatendofperiod Balanceatbeginningofprioryear
Page 123
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 122 Item Balanceatendofperiod Balanceatbeginningofprioryear Commercialdiscountstobereturnedaccrued 6,901,584,485.76 7,580,250,063.83 Accruedmarketdevelopmentexpenses 1,387,174,523.24 1,610,436,757.73 Accrued technology transfer and development expenses 1,363,924,661.78 1,661,847,691.70 Accruedtransportationexpenses 1,169,178,818.11 1,134,888,892.69 TobeTurnoutputtax 1,083,254,951.00 938,930,344.49 Accrued negative fuel consumption credit expenses 54,645,400.70 54,645,400.70 Accruedmaintenanceexpenses 119,045,765.07 60,784,887.39 Other 729,796,707.98 115,591,505.11 Total 12,808,605,313.64 13,157,375,543.64 34. Long-term borrowings Item Balanceatendofperiod Balanceatbeginningofprioryear Creditloans 41,502,388.14 Total 41,502,388.14 35. Bonds payable 1、 Details of Bonds Payable Item Balanceatendofperiod Balanceatbeginningofprioryear Corporatebonds 999,852,830.16 999,803,773.56 Total 999,852,830.16 999,803,773.56
Page 124
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 123 2、 Changes in bonds payable (excluding other financial instruments classified as financial liabilities, such as preferred shares and perpetual bonds). Bond name Facevalue Coupon rate Issuedate Bond term Issueamount Balanceat beginningof prioryear Issued for the period Interest accruedat facevalue PremiumDiscount amortization Repaidfor theperiod Balanceatend ofperiod Whether in default Science and technology innovation corporate bondsBond 1,000,000,000.00 3.00% 2022/12/20 5year 1,000,000,000.00 999,803,773.56 15,000,000.00 49,056.60 999,852,830.16 No Total 1,000,000,000.00 1,000,000,000.00 999,803,773.56 15,000,000.00 49,056.60 999,852,830.16
Page 125
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 124 36. Lease liabilities Item Balanceatendofperiod Balanceatbeginningofprior year Leaseliabilities 406,601,034.99 460,625,265.61 Less: reclassified to non-current liabilities due within oneyear 187,310,267.79 161,478,036.89 Total 219,290,767.20 299,147,228.72 37. Long-term payables Item Balanceatendofperiod Balanceatbeginningofprioryear Long-termpayables 2,066,174,873.12 2,053,422,868.05 Specialpayables 554,210,741.19 491,064,477.16 Total 2,620,385,614.31 2,544,487,345.21 1、 Long-term payables Item Balanceatendofperiod Balanceatbeginningofprioryear Payableprojectpayments 2,066,174,873.12 2,053,422,868.05 Total 2,066,174,873.12 2,053,422,868.05 2、 Special Payables Item Balanceat beginningofprior year Increasesforthe period Decreasesforthe period Balanceatendof period Formation reason Smart manufacturing specialproject 411,476,467.65 114,321,443.97 74,098,708.47 451,699,203.15 Automobile structural lightweight design 2,745,046.71 290,800.00 18,730.70 3,017,116.01 Other 76,842,962.80 48,743,500.00 26,092,040.77 99,494,422.03 Total 491,064,477.16 163,355,743.97 100,209,479.94 554,210,741.19 38. Long-term employee benefits payable Item Balanceatendofperiod Balanceatbeginningofprior year I. Post-employment benefits-Net liability of definedbenefitplan 19,428,315.85 22,116,000.00 II.Terminationbenefits 2,381,830.57 2,463,373.29 Total 21,810,146.42 24,579,373.29 39. Provision for liabilities Item Balanceatbeginning ofprioryear Increasesforthe period Decreasesforthe period Balanceatendof period Formation reason
Page 126
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 125 Product quality warranty 7,911,705,600.64 1,437,325,901.57 1,221,192,617.15 8,127,838,885.06 Estimated liability for contract performance costs 233,048,956.29 15,465,012.76 6,844,842.85 241,669,126.20 Total 8,144,754,556.93 1,452,790,914.33 1,228,037,460.00 8,369,508,011.26 40. Deferred income Item Balanceat beginningofprior year Increasesforthe period Decreasesforthe period Balanceatendof period Government subsidies related toassets 52,133,744.00 7,567,346.16 7,567,346.16 52,133,744.00 Including: production and constructionsubsidies 52,133,744.00 7,567,346.16 7,567,346.16 52,133,744.00 Government subsidies related toincome 28,565,648.58 20,465,994.60 16,199,050.51 32,832,592.67 Including: R&D technology subsidies 15,422,087.76 15,422,087.76 Other government subsidies 28,565,648.58 5,043,906.84 16,199,050.51 17,410,504.91 Total 80,699,392.58 28,033,340.76 23,766,396.67 84,966,336.67 41. Other non-current liabilities Item Balanceatendofperiod Balanceatbeginningofprior year AdvancereceiptsServicefees 1,076,573,398.85 1,252,965,662.48 Entrusted loans from China South Industries GroupFinanceCo.,Ltd. Total 1,076,573,398.85 1,252,965,662.48 42. Share capital Item Balanceat beginningofprior year Increaseinchangesfortheperiod(+)Less(-) Balanceatendof period Issue of new shares Bonus shares Capitalization ofreserve Other Subtotal Total shares 9,914,086,060.00 -1,180,512.00 -1,180,512.00 9,912,905,548.00 43. Capital Reserve Item Balanceatbeginning ofprioryear Increasesforthe period Decreasesforthe period Balanceatendof period Sharepremium 7,440,685,530.59 2,230,590.41 7,438,454,940.18 Othercapitalreserve 1,540,023,199.43 332,817,054.49 1,207,206,144.94 Total 8,980,708,730.02 335,047,644.90 8,645,661,085.12
Page 127
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 126 44. Treasury stock Item Balanceat beginningofprior year Increasesforthe period Decreasesforthe period Balanceatendof period Treasuryshares 3,395,829.33 790,291,729.28 3,395,829.33 790,291,729.28 Total 3,395,829.33 790,291,729.28 3,395,829.33 790,291,729.28
Page 128
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 127 45. Other Comprehensive Income Item Balanceat beginningof prioryear Amountfortheperiod Balanceatend ofperiodAmountincurred beforeincometax fortheperiod Less: previously recognizedin other comprehensive incomeand transferredto profitorloss Less:income taxexpense Netprofitaftertax attributabletothe Company Netprofitafter taxattributable to non-controlling interests Less:other comprehensive income transferredto retained earnings 1Other comprehensive income that cannot be reclassifiedtoprofitorloss 153,543,805.13 153,543,805.13 Including: remeasurement of defined benefit planchanges -1,746,000.00 -1,746,000.00 Other comprehensive income not reclassifiable to profit or loss under equity method -4,894,212.99 -4,894,212.99 Changes in fair value of other equity instrumentinvestments 160,184,018.12 160,184,018.12 2Other comprehensive income that will be reclassifiedtoprofitorloss -288,340,288.35 107,974,903.91 107,974,903.91 -180,365,384.44 Including: other comprehensive income reclassifiable to profit or loss under equity method -4,024,764.80 -17,971,991.02 -17,971,991.02 -21,996,755.82 Foreign currency financial statement translationdifference -284,315,523.55 125,946,894.93 125,946,894.93 -158,368,628.62 Totalothercomprehensiveincome -134,796,483.22 107,974,903.91 107,974,903.91 -26,821,579.31
Page 129
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 128 46. Special reserves Item Balanceatbeginning ofprioryear Increasesforthe period Decreasesforthe period Balanceatendof period Safety production expenses 119,363,825.70 54,912,184.73 17,849,004.58 156,427,005.85 Total 119,363,825.70 54,912,184.73 17,849,004.58 156,427,005.85 47. Surplus reserve Item Balanceatbeginning ofprioryear Increasesforthe period Decreasesforthe period Balanceatendof period Statutorysurplusreserve 4,957,043,030.00 4,957,043,030.00 Total 4,957,043,030.00 4,957,043,030.00 48. Undistributed profits Item Amountfortheperiod Amountforthepriorperiod Undistributed profit at beginning of prior year before adjustment 53,503,168,524.85 52,846,021,500.43 Adjustment to undistributed profit at beginning of year (increase+,less-) Undistributedprofitatbeginningofyearafteradjustment 53,503,168,524.85 52,846,021,500.43 Add: net profit attributable to owners of the Company for the period 817,395,511.85 2,291,211,254.67 Less:appropriationofstatutorysurplusreserve Dividendspayableonordinaryshares 1,138,608,888.49 2,922,564,952.82 Ordinarydividendsconvertedtosharecapital Undistributedprofitatendofperiod 53,181,955,148.21 52,214,667,802.28 49. Operating revenue and operating costs 1、 Status of operating revenue and operating costs Item Amountfortheperiod Amountforthepriorperiod Receivedin Becomecurrent Receivedin Becomecurrent Main business 63,397,851,124.11 54,187,871,670.24 71,122,847,357.43 60,912,862,171.69 Other business 2,236,478,618.05 1,929,228,391.91 1,568,463,029.65 1,180,783,111.72 Total 65,634,329,742.16 56,117,100,062.15 72,691,310,387.08 62,093,645,283.41 50. Taxes and Surcharges Item Amountfortheperiod Amountforthepriorperiod Consumptiontax 714,835,429.08 1,276,202,420.19 Urbanmaintenanceandconstructiontax 111,062,596.93 130,139,031.26
Page 130
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 129 Item Amountfortheperiod Amountforthepriorperiod Educationsurcharge 76,132,384.30 85,167,936.91 Other 164,822,595.99 176,523,613.45 Total 1,066,853,006.30 1,668,033,001.81 51. Selling expenses Item Amountfortheperiod Amountforthepriorperiod Salesservicefees 1,614,115,027.21 2,118,239,084.30 Promotionandadvertisingexpenses 1,047,977,187.34 1,264,934,309.87 Wagesandwelfare 512,626,370.78 552,762,577.77 Transportationandwarehousingexpenses 296,301,440.08 138,303,558.30 Packagingexpenses 194,278,447.41 85,306,559.18 Travelexpenses 83,411,172.15 86,385,379.90 Other 112,265,503.53 115,560,997.91 Total 3,860,975,148.50 4,361,492,467.23 52. Administrative expenses Item Amountfortheperiod Amountforthepriorperiod Wagesandwelfare 973,579,131.53 1,594,776,663.07 Depreciationandamortization 289,007,889.97 290,646,828.51 Transportationandtravelexpenses 31,807,352.78 35,404,797.95 Share-basedpayment 15,696,797.33 Other 339,113,026.39 291,488,235.10 Total 1,633,507,400.67 2,228,013,321.96 53. R&D expenses Item Amountfortheperiod Amountforthepriorperiod Wagesandwelfare 1,034,385,315.80 1,388,750,537.27 Depreciationandamortization 1,899,065,895.95 1,574,340,689.76 Outsourcingfees 79,961,733.21 117,404,910.95 Materialcosts 77,120,303.72 116,601,795.35 Testingexpenses 15,452,511.52 26,465,429.21 Other 48,748,144.26 60,093,920.94 Total 3,154,733,904.46 3,283,657,283.48 54. Financial expenses Item Amountfortheperiod Amountforthepriorperiod Interestexpense 54,665,257.01 38,065,837.11
Page 131
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 130 Item Amountfortheperiod Amountforthepriorperiod Less:interestincome 256,185,892.36 657,365,732.49 Exchangegainsandlosses 230,077,293.58 -1,355,964,767.53 Other 40,574,037.32 18,327,382.57 Total 69,130,695.55 -1,956,937,280.34 55. Other income Item Amountfortheperiod Amountforthepriorperiod Government subsidies related to daily activities Including:industrysupportsubsidies 256,455,586.10 235,203,148.24 Othergovernmentsubsidies 412,153,469.44 770,933,495.39 Total 668,609,055.54 1,006,136,643.63 56. Investment returns Item Amountfortheperiod Amountfortheprior period Investment income from long-term equity investments accounted for usingequitymethod -89,741,790.27 55,363,593.69 Non-sameUnder common controlInvestment income from business combination 161,016,229.92 Investment income during the holding period of financial assets held fortrading 1,353,199.70 Investmentincomefromdisposaloffinancialassetsheldfortrading -224,378.10 Dividend income from other equity instrument investments during holdingperiod 15,041,910.38 12,692,880.00 Timedepositinterestandothers 102,893,016.84 45,614,275.62 Total 188,984,988.77 115,023,949.01 57. Gains from changes in fair value Sourcesoffairvaluechangegains Amountfortheperiod Amountfortheprior period Financialassetsheldfortrading 49,558,887.98 6,513,157.75 Financialliabilitiesheldfortrading -9,148,442.85 Total 40,410,445.13 6,513,157.75 58. Credit impairment losses Item Amountfortheperiod Amountforthepriorperiod Baddebtlossonaccountsreceivable -7,353,459.20 3,634,178.78 Baddebtlossonotherreceivables 344,155.44 -362,762.72
Page 132
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 131 Item Amountfortheperiod Amountforthepriorperiod Total -7,009,303.76 3,271,416.06 59. Impairment loss on assets Item Amountfortheperiod Amountforthepriorperiod Inventoryfallinglossandcontractcostimpairmentloss 467,733,212.04 59,083,960.97 Fixedassetimpairmentloss 1,754,934.64 53,148.85 Contractassetimpairmentloss -6,352,386.00 -10,043,931.00 Intangibleassetimpairmentloss Total 463,135,760.68 49,093,178.82 60. Gain on disposal of assets Item Amountfortheperiod Amountfortheprior period Amountincludedin non-recurringprofitandloss forthecurrentperiod Gain on disposal of fixed assets 58,797,846.55 16,996,024.14 58,797,846.55 Gain on disposal of intangibleassets 16,374,329.83 9,441.56 16,374,329.83 Total 75,172,176.38 17,005,465.70 75,172,176.38 61. Non-operating income Item Amountfortheperiod Amountfortheprior period Amountincludedin non-recurringprofitand lossforthecurrent period Penaltyincomeandothers 45,557,329.01 90,081,260.28 45,557,329.01 Total 45,557,329.01 90,081,260.28 45,557,329.01 62. Non-operating expenses Item Amountfortheperiod Amountfortheprior period Amountincludedin non-recurringprofitand lossforthecurrent period Externaldonations 14,600,000.00 Finesandlatepaymentsurcharges 3,818,439.58 1,630,770.51 3,818,439.58 Compensationexpenses 20,295,098.13 20,295,098.13 Other 11,620,359.22 10,600,642.48 11,620,359.22 Total 35,733,896.93 26,831,412.99 35,733,896.93 63. Income tax expense 1、 Statement of Income Tax Expense Item Amountfortheperiod Amountforthepriorperiod Currentincometaxexpense 215,410,957.32 587,548,701.70
Page 133
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 132 Item Amountfortheperiod Amountforthepriorperiod Deferredincometaxexpense -137,222,059.43 -211,231,814.94 Total 78,188,897.89 376,316,886.76 2、 Adjustment process for reconciling accounting profit with income tax expense. Item Amountfortheperiod Totalprofit 258,903,165.51 Bystatutory[Orapplicable]Incometaxexpensecalculatedattaxrate 38,835,474.83 Effectofdifferenttaxratesapplicabletosubsidiaries 1,117,051.10 Effectofadjustmentstoincometaxofpriorperiods -16,979.93 Effectofnon-taxableincome -179,209,672.41 Effectofnon-deductiblecosts,expensesandlosses -1,238.68 Effectofutilizingpreviouslyunrecognizeddeferredtaxassetsfordeductiblelosses -34,554,491.27 Not for the periodEffect of recognizing deferred tax assets for deductible temporary differencesordeductiblelosses 395,410,171.35 Effectofadditionaltaxdeductionssuchassuperdeduction -143,391,417.10 Incometaxexpense 78,188,897.89 64. Cash Flow Statement Items 1、 Cash flows from operating activities (1) Other cash received related to operating activities Item Amountfortheperiod Amountforthepriorperiod Interestincome 256,185,892.36 657,365,732.49 Governmentsubsidies 645,078,390.67 1,088,661,008.79 Other 246,646,188.27 98,233,980.20 Total 1,147,910,471.30 1,844,260,721.48 (2) Other cash paid related to operating activities Item Amountfortheperiod Amountforthepriorperiod Sellingexpenses 3,348,348,777.72 2,643,015,184.51 Administrativeexpenses 370,920,379.17 890,965,941.36 R&Dexpenses 1,788,074,801.89 1,800,991,507.70 Other 1,939,424,016.99 1,166,123,768.26 Total 7,446,767,975.77 6,501,096,401.83 2、 Cash flows related to investment activities (1) Other cash received related to investing activities Item Amountfortheperiod Amountforthepriorperiod Timedepositsandothers 1,137,033,698.63 50,975,988.18 Non-sameUndercommoncontrolConsolidation 537,828,162.89 Total 1,674,861,861.52 50,975,988.18
Page 134
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 133 (2) Cash paid for other items related to investing activities Item Amountfortheperiod Amountforthepriorperiod Certificatesofdepositandlargecertificatesofdeposit 1,825,000,000.00 Other 771,500.00 Total 1,825,771,500.00 3、 Cash flows related to financing activities (1) Cash received from other activities related to financing Item Amountfortheperiod Amountforthepriorperiod Recoveryofacceptancebillmargin 322,309,837.79 280,715,982.94 Total 322,309,837.79 280,715,982.94 (2) Other cash paid related to financing activities Item Amountfortheperiod Amountforthepriorperiod Repurchaseshares 790,291,729.28 Acceptancebillmarginpaid 2,985,639.75 Other 30,344,579.97 50,184,574.37 Total 820,636,309.25 53,170,214.12 65. Supplementary information to the statement of cash flows 1、 Supplementary information to the statement of cash flows Supplementaryinformation Amountfortheperiod Amountfortheprior period 1I.Reconciliationofnetprofittonetcashfromoperatingactivities Netprofit 180,714,267.62 1,792,653,891.27 Add:creditimpairmentloss -7,009,303.76 3,271,416.06 Assetimpairmentloss 463,135,760.68 49,093,178.82 Depreciationoffixedassets 1,370,517,340.47 1,436,203,796.01 Depreciationandamortizationofinvestmentproperty 113,355.78 113,355.78 Depreciationofright-of-useassets 71,116,061.92 53,830,380.91 Amortizationofintangibleassets 1,924,424,194.52 1,584,999,678.88 Amortizationoflong-termdeferredexpenses 4,541,499.91 5,152,847.21 Loss on disposal of fixed assets, intangible assets and other long-termassets(gainof“－”(enteredbynumber) 75,172,176.38 -17,005,465.70 Fixedassetdisposalloss(gainof“－”(enteredbynumber) Fairvaluechangeloss(gainof“－”(enteredbynumber) -40,410,445.13 -6,513,157.75 Financialexpenses(gainof“－”(enteredbynumber) 54,665,257.01 38,065,837.11 Investmentloss(gainof“－”(enteredbynumber) -188,984,988.77 -115,023,949.01 Decrease in deferred tax assets (increase of“ －”(entered by number) -72,869,233.18 -84,242,353.04
Page 135
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 134 Supplementaryinformation Amountfortheperiod Amountfortheprior period Increaseindeferredtaxliabilities(decreaseof“－”(enteredby number) -64,352,826.25 -126,989,461.90 Decreaseininventories(increaseof“－”(enteredbynumber) -954,255,346.61 131,247,271.53 Decreaseinoperatingreceivables (increaseof“－”(enteredby number) 3,359,152,057.08 18,763,979,020.76 Increase in operating payables (decrease of“ －”(entered by number) -17,438,777,743.28 -32,126,023,975.32 Other 9,990,898.11 Netcashfromoperatingactivities -11,413,452,268.37 -8,607,196,790.27 2Significantinvestingandfinancingactivitiesnotinvolvingcash Debtconvertedtocapital ConvertiblecorporatebondsduewithinoneyearBond Right-of-useassetsacquiredbyassumingleaseliabilities 3Netchangesincashandcashequivalents Cashbalanceatendofperiod 38,478,869,595.83 52,185,989,975.49 Less:cashatbeginningofperiod 52,993,171,152.75 63,274,376,513.00 Add:cashequivalentsatendofperiod Less:cashequivalentsatbeginningofperiod Netincreaseincashandcashequivalents -14,514,301,556.92 -11,088,386,537.51 2、 Composition of Cash and Cash Equivalents Item Balanceatendofperiod Balanceatbeginningof prioryear I.Cash 38,478,869,595.83 52,185,989,975.49 Including:cashonhand 37,315.38 6,818.27 Digitalcurrencyavailableforpaymentatanytime Bankdepositsavailableforpaymentatanytime 37,202,498,507.08 52,181,249,531.26 Othermonetaryfundsavailableforpaymentatanytime 1,276,333,773.37 4,733,625.96 Depositswithcentralbankavailableforpayment II.Cashequivalents Including:bondinvestmentsmaturingwithinthreemonths III.Balanceofcashandcashequivalentsatendofperiod 38,478,869,595.83 52,185,989,975.49 Of which: cash and cash equivalents held but not available for usebytheparentorothersubsidiaries 66. Foreign currency monetary items 1、 Foreign currency monetary items Item Foreigncurrencybalanceat endofperiod Exchangerate TranslatedRMBbalanceat endofperiod Monetaryfunds 3,756,415,902.69 Ofwhich:USD 54,109,777.98 6.8109 368,500,362.11 EUR 88,361,383.44 7.7671 686,311,701.32
Page 136
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 135 Item Foreigncurrencybalanceat endofperiod Exchangerate TranslatedRMBbalanceat endofperiod GBP 13,872,159.98 9.0145 124,893,017.14 DiLaMu 2,274,899.97 1.8511 4,211,067.33 ThaiBaht 6,189,244,766.47 0.2042 1,263,843,781.31 RUB 13,215,239,746.81 0.0883 1,166,465,690.45 JPY 305,235,381.00 0.0420 12,819,886.00 Peso 331,990,312.87 0.3897 129,370,397.03 Accountsreceivable 3,995,665,785.29 Ofwhich:USD 182,668,337.21 6.8109 1,244,118,734.86 EUR 83,759,449.90 7.7671 650,568,023.32 JPY 15,277,775.00 0.0420 641,666.55 GBP 2,502,498.22 9.0145 22,558,770.20 Peso 2,516,456,758.96 0.3897 980,663,187.62 ThaiBaht 5,372,749,278.83 0.2042 1,097,115,402.74 Otherreceivables 215,252,048.86 Ofwhich:EUR 13,330,454.37 7.7671 103,538,972.14 USD 1,723,597.87 6.8109 11,717,370.07 JPY 17,408,320.00 0.0420 731,149.44 ThaiBaht 485,447,035.30 0.2042 99,128,284.61 DiLaMu 249,390.45 1.8511 461,646.66 Accountspayable 3,119,822,800.85 Ofwhich:EUR 19,552,268.65 7.7671 151,864,425.83 USD 8,087,804.78 6.8109 54,982,514.44 RUB 3,083,738,463.62 0.0883 272,191,438.45 ThaiBaht 6,439,903,206.67 0.2042 1,315,028,234.80 Peso 3,401,800,751.35 0.3897 1,325,681,752.80 DiLaMu 40,210.97 1.8511 74,434.53 Otherpayables 235,874,561.07 Ofwhich:EUR 19,552,268.65 7.7671 151,864,425.83 USD 40,781.00 6.8109 277,755.31 ThaiBaht 382,583,847.53 0.2042 78,123,621.67 Peso 14,392,502.59 0.3897 5,608,758.26 67. Leasing 1、 As a lessee Item Amountfortheperiod Interestexpenseonleaseliabilities 9,241,094.89 Short-term lease expenses under simplified treatment recognized in related asset cost or currentprofitorloss 2,466,808.57 Low-valueassetleaseexpensesundersimplifiedtreatmentrecognizedinrelatedassetcost orcurrentprofitorloss(excludingshort-termleasesoflow-valueassets) 144,260.79 Totalcashoutflowsrelatedtoleases 50,636,030.23
Page 137
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 136 2、 As the lessor (1)Operatinglease Amountfortheperiod Operatingleaseincome 26,857,765.23 Including: not included inLease incomeVariable lease paymentsAmount relatedIncomeof The undiscounted lease payments to be received after the reporting date are as follows: Remainingleaseterm Amountfortheperiod 1Withinoneyear 41,044,845.17 1to2year 41,847,872.55 2to3year 42,356,903.68 3to4year 42,871,353.68 4to5year 43,711,791.18 5yearsandabove 88,168,225.56 Total 300,000,991.82 VIII. Research and Development Expenditure 1. R&D expenditure Item Amountfortheperiod Amountforthepriorperiod Employeecompensation 1,726,286,589.33 2,006,653,693.63 Depreciationandamortization 1,899,264,901.11 1,577,241,265.67 Outsourcingfees 1,127,192,933.57 1,046,430,730.38 Materialcosts 144,581,876.69 175,556,508.08 Testingexpenses 173,656,767.68 226,711,925.50 Otherexpenses 35,450,948.27 371,287,417.75 Total 5,106,434,016.65 5,403,881,541.01 Including:expensedR&Dexpenditure 3,154,733,904.46 3,283,657,283.48 CapitalizedR&Dexpenditure 1,951,700,112.19 2,120,224,257.53 2. Development expenditures Item Balanceat beginningof prioryear Increasesfortheperiod amount Decreasesfortheperiodamount Balanceatendof periodInternal development expenditure Other Recognizedas intangibleassets Other Automobile development 3,395,674,763.46 1,951,700,112.19 - 2,936,505,462.00 2,239,702.07 2,408,629,711.58 Subtotal 3,395,674,763.46 1,951,700,112.19 - 2,936,505,462.00 2,239,702.07 2,408,629,711.58 Less:
Page 138
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 137 Item Balanceat beginningof prioryear Increasesfortheperiod amount Decreasesfortheperiodamount Balanceatendof periodInternal development expenditure Other Recognizedas intangibleassets Other impairment provision Total 3,395,674,763.46 1,951,700,112.19 - 2,936,505,462.00 2,239,702.07 2,408,629,711.58 IX. Changes in the Scope of Consolidation (I)Businesscombinationsnotundercommoncontrol 1. Details of business combinations not under common control that occurred in this reportingperiod. NameofthePurchased Party Thepoint intimeof equity acquisition. Costof acquiring equity Equity Acquisition Ratio(%) Methods of Acquiring Equity Interests Dateof Purchase Criteriafor determiningthe acquisitiondate. Jiangling Holdings Co., Ltd. 2026/5/31 1.00 25.00 Purchase 2026/5/31 Gaincontrol (Continued) NameofthePurchased Party Revenueofthe acquiredentityfrom theacquisitiondateto theendoftheperiod. Netprofitoftheacquired partyfromtheacquisition datetotheendofthe period. Cashflowsoftheacquired entityfromtheacquisition datetotheendofthe reportingperiod. Jiangling Holdings Co., Ltd. 1,243,409,971.58 9,557,257.44 18,996,599.62 2.CombinationCostandGoodwill JianglingHoldingsCo.,Ltd. Mergercost —Cash 1.00 The fair value of the equity interest held prior to the acquisition date asoftheacquisitiondate. -171,800,824.57 —Others -38,631,295.75 Totalmergercost -210,432,119.32 Less:Shareofthefairvalueofidentifiablenetassetsacquired -395,819,998.50 The amount by which the goodwill or the cost of the business combination is less than the acquirer's share of the fair value of the acquiree'sidentifiablenetassets. 185,387,879.18 3.Identifiableassetsandliabilitiesoftheacquireeasoftheacquisitiondate. JianglingHoldingsCo.,Ltd. Fairvalueonthedate ofpurchase Bookvalueonthedate ofpurchase Assets: 2,821,320,315.34 2,507,888,720.42 Inventory 101,893,997.40 83,499,912.85 Fixedassets 781,071,231.00 550,003,969.51 Constructioninprogress 6,650,643.33 6,770,556.02 Intangibleassets 147,143,506.19 83,053,344.62
Page 139
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 138 JianglingHoldingsCo.,Ltd. Fairvalueonthedate ofpurchase Bookvalueonthedate ofpurchase Liabilities: 3,508,523,613.61 3,612,838,813.61 TotalCurrentLiabilities 3,487,028,019.12 3,487,028,019.12 Totalnon-currentliabilities 21,495,594.49 125,810,794.49 NetAssets -687,203,298.27 -1,104,950,093.19 X. Interests in Other Entities 1. Equity interest in a subsidiary 1、 Composition of a corporate group Nameof subsidiary Registered capital(RMB 10,000) Principal placeof business Placeof registration Natureof business Shareholding ratio(%) Methodof acquisition Direct Indirect Chongqing Changan Automobile International Sales Service Co., Ltd. 142,275.64 Chongqing Municipality Chongqing Municipality Sales 100.00 Establish Chongqing Changan Vehicle Connectivity Technology Co., Ltd. 8,850.00 Chongqing Municipality Chongqing Municipality Lease 100.00 Establish Chongqing Changan Special Purpose Vehicle Co.,Ltd. 2,000.00 Chongqing Municipality Chongqing Municipality Sales 50.00 Establish Chongqing Changan Automobile Customer Service Co.,Ltd. 3,000.00 Chongqing Municipality Chongqing Municipality Sales 99.00 1.00 Establish Chongqing Zhilaidao New EnergyCo.,Ltd. 2,900.00 Chongqing Municipality Chongqing Municipality R&D 100.00 Establish Changan Europe Design Center Co.,Ltd. EUR2,623.56 Turin,Italy Turin,Italy R&D 100.00 Establish Changan Automobile UK R&D Center Co., Ltd. GBP2,639 Birmingham, UK Birmingham, UK R&D 100.00 Establish Beijing Changan Automobile Engineering Technology Research Co., Ltd. 100.00 Beijing Municipality Beijing Municipality R&D 100.00 Establish Changan Japan Design Center Co.,Ltd. JPY1,000 Yokohama, Japan Yokohama, Japan R&D 100.00 Establish
Page 140
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 139 Nameof subsidiary Registered capital(RMB 10,000) Principal placeof business Placeof registration Natureof business Shareholding ratio(%) Methodof acquisition Direct Indirect Changan America R&D Center Co., Ltd. USD154 Novi,USA Novi,USA R&D 100.00 Establish Changan Automobile Investment (Shenzhen) Co., Ltd. 134,451.35 Shenzhen Shenzhen Sales 100.00 Establish Nanjing Changan New Energy Automobile Sales ServiceCo.,Ltd. 5,000.00 Nanjing Municipality Nanjing Municipality Sales 100.00 Establish Chong'anPost stationAutomobile Technology ServiceCo.,Ltd. 200.00 Chongqing Municipality Chongqing Municipality Sales 100.00 Establish Xiamen Changan New Energy Automobile Sales ServiceCo.,Ltd. 200.00 Xiamen Xiamen Sales 100.00 Establish Shanghai Changan Zhixing Technology Co., Ltd. 400.00 Shanghai Shanghai Sales 100.00 Establish Chongqing Chehemei Technology Co., Ltd. 1,000.00 Chongqing Municipality Chongqing Municipality Sales 100.00 Establish Chongqing Changan Kaicheng Automobile Technology Co., Ltd. 142,371.45 Chongqing Municipality Chongqing Municipality Sales 65.90 Establish Chongqing Changan Automobile Software Technology Co., Ltd. 9,900.00 Chongqing Municipality Chongqing Municipality R&D 100.00 Establish Chongqing Xingzhi Technology Co., Ltd. 4,900.00 Chongqing Municipality Chongqing Municipality Sales 100.00 Establish Chongqing Changan Technology Co., Ltd. 9,000.00 Chongqing Municipality Chongqing Municipality R&D 100.00 Establish Chongqing Changan Xing Automobile Co., Ltd. 2,000.00 Chongqing Municipality Chongqing Municipality Lease 100.00 Establish Nanjing Changan Automobile Co., Ltd. 60,181.00 Nanjing Municipality Nanjing Municipality Manufacturing 84.73 Non-sameUnder common controlUnder business combination Chongqing Lingyao Automobile Co., 133,764.00 Chongqing Municipality Chongqing Municipality Manufacturing 100.00 Non-sameUnder common controlUnder
Page 141
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 140 Nameof subsidiary Registered capital(RMB 10,000) Principal placeof business Placeof registration Natureof business Shareholding ratio(%) Methodof acquisition Direct Indirect Ltd. business combination Deepal Automobile Technology Co., Ltd. 46,615.71 Chongqing Municipality Chongqing Municipality Manufacturing 51.00 Non-sameUnder common controlUnder business combination Hefei Changan Automobile Co., Ltd. 227,500.00 Hefei Hefei Manufacturing 100.00 SameUnder common controlUnder business combination Changan Tianshu Intelligent Robot (Chongqing) Co., Ltd. 45,000.00 Chongqing Municipality Chongqing Municipality Manufacturing 50.00 10.00 Establish Changan Automobile Nanchang (Sales) Co.,Ltd. 1,000.00 Nanchang Municipality Nanchang Municipality Sales 100.00 Establish Jiangling Holding Co.,Ltd. 200,000.00 Nanchang Municipality Nanchang Municipality Manufacturing 50.00 Non-sameUnder common controlUnder business combination
Page 142
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 141 2. Interests in joint arrangements or associates 1、 Significant joint ventures or associates. Nameofjointventureorassociate Principalplaceof business Placeof registration Natureofbusiness Shareholdingratio(%) Accountingmethodfor investmentsinjoint venturesorassociates Whetherstrategictothe Company'sactivitiesDirect Indirect ChanganFordAutomobileCo.,Ltd. Chongqing Municipality Chongqing Municipality Automobile manufacturingandsales 50.00 Equitymethod Yes
Page 143
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 142 2、 Key financial information of significant joint ventures Item ChanganFordAutomobileCo.,Ltd. Balanceatendof period/Amountfortheperiod Balanceatbeginningofprior year/Amountforthepriorperiod Currentassets 10,971,039,653.97 13,229,796,476.83 Ofwhich:cashandcashequivalents 4,444,822,084.26 6,580,969,694.88 Non-currentassets 9,201,885,174.11 9,799,477,103.13 Totalassets 20,172,924,828.08 23,029,273,579.96 Currentliabilities 10,859,833,172.67 17,164,149,707.34 Non-currentliabilities 6,424,234,089.46 3,244,020,964.12 Totalliabilities 17,284,067,262.13 20,408,170,671.46 Non-controllinginterests 153,845,639.03 153,148,103.41 Equity attributable to shareholders of the parent company 2,735,011,926.92 2,467,954,805.09 Share of net assets calculated by shareholding ratio 1,367,505,963.46 1,233,977,402.55 Adjustmentitems -59,239,541.44 -56,409,324.36 Carryingamountofinvestmentinjointventures 1,308,266,422.02 1,177,568,078.19 Fair value of joint venture equity investments withquotedprice Netprofit 261,332,897.29 753,237,410.89 Netprofitfromdiscontinuedoperations Othercomprehensiveincome Totalcomprehensiveincome 261,332,897.29 753,237,410.89 Dividends received from joint ventures for the period 3、 Aggregated financial information of immaterial joint ventures and associates. Balanceatendofperiod/Amount fortheperiod Balanceatbeginningofprior year/Amountforthepriorperiod Jointventures: Totalcarryingamountofinvestments 4,258,172,506.27 4,110,478,645.75 Totalamount calculated byshareholding ratio for eachofthefollowing —Netprofit 147,693,860.52 143,148,726.50 —OtherComprehensiveincome -2,386,300.06 —Totalcomprehensiveincome 147,693,860.52 140,762,426.44 Associates: Totalcarryingamountofinvestments 14,983,407,905.79 11,452,335,506.12 Totalamount calculated byshareholding ratio for eachofthefollowing —Netprofit -373,512,752.20 232,595,890.30 —OtherComprehensiveincome -17,971,991.02 1,505,344.19
Page 144
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 143 Balanceatendofperiod/Amount fortheperiod Balanceatbeginningofprior year/Amountforthepriorperiod —Totalcomprehensiveincome -391,484,743.22 234,101,234.49 XI. Government Grants 1. Government grants recognized in the current period's profit or loss Type Amountfortheperiod Amountforthepriorperiod Governmentsubsidiesrelatedtoassets 119,566,726.81 137,869,400.15 Governmentsubsidiesrelatedtoincome 678,168,564.14 1,441,951,363.44 Total 797,735,290.95 1,579,820,763.59
Page 145
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 144 2. Liability items involving government grants. Liabilityitems Balanceat beginningofprior year Newsubsidies receivedforthe period Amountrecognized innon-operating incomeforthe period Amountoffset againstrelated assetsfortheperiod Amountoffset againstcostsand expensesforthe period Otherchanges Balanceatendof period Relatedto assets/Relatedto income Deferredincome 52,133,744.00 7,567,346.16 7,567,346.16 52,133,744.00 Relatedtoassets Deferredincome 28,565,648.58 20,465,994.60 16,199,050.51 32,832,592.67 Relatedtoincome
Page 146
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 145 XII. Risks Related to Financial Instruments 1. Various risks arising from financial instruments. TheCompanyfacesvariousfinancialrisksinitsoperations,includingcreditrisk,liquidity risk, and market risk (which encompasses exchange rate risk, interest rate risk, and other pricerisks).Theaforementionedfinancialrisks andtheriskmanagement policiesadopted bytheCompanytomitigatesuchrisksaredescribedasfollows: The overarching objective of our company's risk management is to formulate risk management policies that minimize risk as much as possible without unduly compromisingthecompany'scompetitivenessandadaptability. 1、 Credit risk Credit risk refers to the risk of financial loss incurred by the Company due to the counterparty'sfailuretofulfillitscontractualobligations. The Company's credit risk primarily arises from cash and cash equivalents, notes receivable, accounts receivable, receivables for financing, other receivables, and debt instrument investments measured at fair value through profit or loss that are excludedfromtheimpairmentassessmentscope. The Company's monetary funds primarily consist of bank deposits held in state-owned banks and other large and medium-sized listed banks with reputable standing and high credit ratings; the Company considers that these deposits do not entailsignificantcreditriskandareunlikelytoresultinmateriallossesduetobank defaults. Furthermore, the Company has established relevant policies to control credit risk exposure for items such as notes receivable, accounts receivable, receivables from financing, contractassets,andotherreceivables.TheCompanyassessescustomers' creditworthiness and establishes corresponding credit periods based on an evaluation of their financial status, the feasibility of obtaining guarantees from thirdparties,credithistory,andotherfactorssuchascurrentmarketconditions.The Company regularly monitors customer credit records; for customers with poor credit history, the Company employs measures such as written collection notices, shortening credit periods, or revoking credit privileges to ensure that the Company'soverallcreditriskremainswithinacontrollablerange. 2、 Liquidity risk Liquidity risk refers to the risk that an enterprise faces a shortage of funds when fulfillingobligationssettledbydeliveringcashorotherfinancialassets. The Company's policy is to ensure sufficient cash to repay maturing debts. Liquidity risk is centrally controlled by the Company's Finance Department. The finance department ensures that the company maintains sufficient liquidity to service its debt under all reasonably foreseeable scenarios by monitoring cash balances, readily marketable securities, and rolling 12-month cash flow forecasts. Simultaneously, continuously monitor the company's compliance with the loan agreement provisions, secure commitments from major financial institutions to provide sufficient standby funding to meet short-term and long-term capital requirements. The Company's various financial liabilities are presented below by maturity based onundiscountedcontractualcashflows.
Page 147
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 146 3、 Market risk Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to changes in market prices, encompassingexchangeraterisk,interestraterisk,andotherpricerisks. (1) Interest rate risk Interest rate risk refers to the risk that the fair value or future cash flows of a financialinstrumentwillfluctuateduetochangesinmarketinterestrates. Interest-bearing financial instruments with fixed rates andfloating rates expose the Companytofairvalueinterestrateriskandcashflowinterestraterisk,respectively. TheCompanydeterminestheproportionoffixed-rateandfloating-rate instruments based on market conditions and maintains an appropriate mix of such instruments through regular review and monitoring. Where necessary, the Company employs interestrateswapinstrumentstohedgeagainstinterestraterisk. The Company's revenue and operating cash flows are substantially unaffected by fluctuations in market interest rates.As of June 30, 2026, all bank borrowings and bonds payable of the Companybear interest at fixed rates.The Company currently hasnohedgingagainstinterestraterisk. (2) Exchange rate risk Exchange rate risk refers to the risk that the fair value or future cash flows of a financialinstrumentwillfluctuateduetochangesinforeignexchangerates. TheCompanycontinuouslymonitorsthescaleofforeigncurrencytransactionsand foreign currency assets and liabilities to minimize exposure to foreign exchange risk. Furthermore, the company may also enter into forward foreign exchange contracts or currency swap agreements to mitigate exchange rate risks. The Company has not entered into any currency swap contracts in the current or precedingperiods. The Company's exposure to exchange rate risk primarily stems from financial assets and financial liabilities denominated in US dollars, and the amounts of foreigncurrencyfinancialassetsandforeigncurrencyfinancialliabilitiesconverted intoRMBarepresentedasfollows. As of June 30, 2026, assuming all other variables remain unchanged, a 5% appreciationor depreciationof the Renminbi against theUS Dollar would result in an increase or decrease in the Company's net profit of RMB 66,193,541.74 (as of December 31, 2025: RMB 25,121,701.91). Management believes that a 5% range reasonably reflects the potential fluctuation of the RMB against the USD in the upcomingfiscalyear. (3) Other price risks Other price risks refer to the risk that the fair value or future cash flows of a financial instrument fluctuate due to market price changes other than those arising fromexchangerateandinterestraterisks. TheCompany's otherpricerisks primarilyarisefrominvestmentsinvariousequity instruments, exposing the Company to the risk of fluctuations in equity instrument prices.
Page 148
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 147 XIII. Disclosure of Fair Value Theinputsusedinfairvaluemeasurementarecategorizedintothreelevels: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilitiesthatareaccessibleatthemeasurementdate. The second-level input value refers to observable inputs, other than quoted prices in active markets for identical assets or liabilities (Level 1), that are directly or indirectly observablefortherelevantassetorliability. TheLevel3inputvaluereferstounobservableinputsfortherelevantassetorliability. The level of the fair value measurement hierarchy to which the fair value measurement resultbelongsisdeterminedbythelowestlevelofinputthatissignificanttothefairvalue measurementasawhole. 1. The fair value at the end of the period of assets and liabilities measured at fair value. Item Fairvalueatendofperiod Level1fairvalue measurement Level2fair value measurement Level3fairvalue measurement Total I. Recurring fair value measurement ◆Financialassetsheldfortrading 98,189,461.12 30,137,096.47 128,326,557.59 (1) Investments in equity instruments 98,189,461.12 98,189,461.12 (2)Derivativefinancialassets 30,137,096.47 30,137,096.47 ◆Other investments in equity instruments 692,201,858.72 692,201,858.72 Total assets measured at fair value on a recurring basis 98,189,461.12 30,137,096.47 692,201,858.72 820,528,416.31
Page 149
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 148 2. Reconciliation of the carrying amounts at the beginning and end of the year and sensitivity analysis of unobservable inputs for Level 3 fair value measurements on a recurring basis. 1、 Reconciliation information for recurring Level 3 fair value measurements. Item Balanceat beginningof prioryear Transferred toLevel3 Transferred outofLevel 3 Totalcurrentgainsorlosses Purchases,issuances,salesandsettlements Balanceatend ofperiod Unrealizedgains orchangesin currentperiod recognizedin profitorlossfor assetsheldatend ofreportingperiod Recognized inprofitor loss Recognizedin other comprehensive income Purchase Issuance Sale Settlement ◆Other investments inequityinstruments 692,201,858.72 692,201,858.72
Page 150
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 149 XIV. Related Parties and Related Party Transactions 1. Information regarding the parent company of our organization. Nameofparent company Placeof registration Natureofbusiness Registeredcapital Shareholding ratioofthe parent company(%) Votingright ratioofthe parent company(%) Chenchi AutomobileTechnology GroupCo.,Ltd. Beijing Municipality Manufacture and sale of automobiles, enginesandparts 6,092,273,400.00 20.87 20.87 The ultimate controlling party of our company is China ChanganAutomobile Group Co., Ltd. 2. Overview of the Company's Subsidiaries Details regarding the Company's subsidiaries are provided in Note 10, "Interests in Other Entities." 3. Status of the Company's Joint Ventures and Associates DetailsoftheCompany'ssignificantassociatesandjointventuresareprovidedinNote10, "InterestsinOtherEntities." 4. Status of Other Related Parties Nameofotherrelatedparties Relationshipofotherrelatedpartieswiththe Company ChongqingQingshanIndustryCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingChanganMinshengLogisticsCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Chenchi(Chongqing)LightweightTechnologyCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany SichuanJian'anIndustryCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany SichuanNingjiangShanchuanMachineryCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany SouthwestFaureciaAutomobilePartsCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Chenchi(Chongqing)BrakeSystemCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany HarbinDong'anAutomobileEngineManufacturingCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany SouthwestIntalAutomotiveAirConditionerCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChengduHuachuanElectricEquipmentCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingConstructionvehiclesAirConditionerCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany HunanTianyanMachineryCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany HarbinDong'anAutomobilePowerCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Chenchi(Chengdu)IntelligentSuspensionCo.,Ltd. Subject to the sameUltimatelyControlled by
Page 151
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 150 Nameofotherrelatedparties Relationshipofotherrelatedpartieswiththe Company holdingcompany ChongqingFujiSupplySupplyChainManagementCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany GuizhouWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingWanyouEconomicDevelopmentCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany JiangsuWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany YunnanWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChengduWanyouXiangyuAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChengduWanyouAutoTradeServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany AnhuiWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChenchiAutomobileTechnologyGroupCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Chongqing Wanyou ChengxingAutomobile Sales & Service Co., Ltd. Subject to the sameUltimatelyControlled by holdingcompany WanyouAutomobileInvestmentCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany inChinaChanganAutomobileGroupTianjinSalesCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany BeijingBeifangChangfuAutomobileSalesCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChengduWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChenchiTechnologyCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany LongchangShanchuanMachineryCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Chongqing WanYouzhicheng AutomobileSales & Service Co., Ltd. Subject to the sameUltimatelyControlled by holdingcompany BeijingOrdnanceInsuranceBrokerageCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingWanYouxingjianAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Ya'anWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingQingshanTransmissionSalesCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany PanzhihuaWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingWanYouzundaAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingChangxiangSupplySupplyChainTechnologyCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany
Page 152
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 151 Nameofotherrelatedparties Relationshipofotherrelatedpartieswiththe Company ChengduWanyouTradingCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingAnfuAutomobileMarketingCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany Chongqing Wanyou Longrui Automobile Sales & Service Co., Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChinaSouthIndustriesGroupFinanceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany DaliWanfuAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany inChinaChina SouthIndustries GroupCommercialfactoringCo., Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingSaimeiDigitalIntelligenceTechnologyCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany LuoyangNorthernEnterpriseGroupCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingJiansheAutomobileSystemsCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChinaChanganAutomobileGroupShenzhenInvestmentCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany ChongqingWanyouAutomobileSales&ServiceCo.,Ltd. Subject to the sameUltimatelyControlled by holdingcompany GKNDrivelineDrivetrainSystem(Chongqing)Co.,Ltd. Companiesinwhichtheultimateholdingcompany hasequityparticipation Chongqing JiansheHanon AutomobileThermal Management SystemCo.,Ltd. Companiesinwhichtheultimateholdingcompany hasequityparticipation BentelerJian'anAutomobileSystems(Chongqing)Co.,Ltd. Companiesinwhichtheultimateholdingcompany hasequityparticipation AVATR(Chongqing)AutomobileSales&ServiceCo.,Ltd. OtherRelatedparty YinwangIntelligentTechnologyCo.,Ltd. OtherRelatedparty BeijingWulianTechnologyCo.,Ltd. OtherRelatedparty TaizhouLingXingzhixiangTechnologyCo.,Ltd. OtherRelatedparty HangzhouLingXingyuexiangAutomobileServiceCo.,Ltd. OtherRelatedparty ShanghaiJiaxingAutomobileServiceCo.,Ltd. OtherRelatedparty HubeiHuamaRuiliAutomobileLightingCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingJiansheTransmissionTechnologyCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol HubeiHuacheLampCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChengduWanyouFilterCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingShangfangAutomobilePartsCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChengdeSukengYinheAutomobilePartsCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingChanganIndustry(Group)Co.,Ltd. Former China South Industries GroupCompanies undergroupcontrol Chongqing Changan Intelligent Industrial Technology Service Former China South Industries GroupCompanies
Page 153
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 152 Nameofotherrelatedparties Relationshipofotherrelatedpartieswiththe Company Co.,Ltd. undergroupcontrol ChengduLingchuanAutomotiveFuelTankCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingYihongDefenseTechnologyCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingDajiangJiexinForgingCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol in China China South Industries Group No. 59 Research Institute Co.,Ltd. Former China South Industries GroupCompanies undergroupcontrol SouthwestOrdnance(Chongqing)SmartTechnologyCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingChanganSmartCityOperationManagementCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol Southwest Ordnance Chongqing Environmental Protection ResearchInstituteCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol NanyangLidaOptoelectronicsCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChengduJialingHuaxiOpticalPrecisionMachineryCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingSouthwestInspectionandTestingCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChinaOrdnanceNews Former China South Industries GroupCompanies undergroupcontrol ChinaOrdnanceEquipmentResearchInstitute Former China South Industries GroupCompanies undergroupcontrol in China China South Industries Group Human Resources DevelopmentCenter Former China South Industries GroupCompanies undergroupcontrol ChongqingJiansheIndustry(Group)Co.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingHongyuPrecisionIndustryGroupCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingChanganWangjiangIndustrialGroupCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol in China China South Industries Group Ordnance Equipment ResearchInstitute Former China South Industries GroupCompanies undergroupcontrol ZhongguangxueGroupCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChengduGuangmingOptoelectronicsCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol JiangxiChangjiangChemicalCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChengduLingchuanSpecialIndustryCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ChongqingChangjiangElectricianIndustrialGroupCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol ConstructionIndustryGroup(Yunnan)Co.,Ltd. Former China South Industries GroupCompanies undergroupcontrol HangzhouZhiyuanResearchInstituteCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol Xi'anOrdnanceIndustrySpecialEquipmentInspectionCo.,Ltd. Former China South Industries GroupCompanies undergroupcontrol
Page 154
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 153 Nameofotherrelatedparties Relationshipofotherrelatedpartieswiththe Company ChongqingNaiShiSteeringSystemCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation LearChangan(Chongqing)AutomobileSystemsCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation ChongqingDajiangDongyangPlasticProductsCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation UnitedAutomobileElectronics(Chongqing)Co.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation ChengduZiguangmingCatalyticTechnologyCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation Chongqing Lingchuan Automobile Parts Manufacturing TechnologyCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation ChongqingDajiangYapuAutomobilePartsCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation TennecoLingchuan(Chongqing)ExhaustSystemCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation ChongqingWanyouHumanResourcesServiceCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation HenanDubangOptoelectronicsCo.,Ltd. Former China South Industries GroupCompanies inwhichthegrouphasequityparticipation
Page 155
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 154 5. Status of Related-Party Transactions 1、 Related-party transactions involving the purchase and sale of goods, as well as the provision and acceptance of services. StatementofPurchasedGoodsandAcceptedServices Relatedparty Relatedpartytransactioncontent Amountfortheperiod Approvedtransaction limit Whether exceeding transaction limit Amountforthepriorperiod TimesChanganPowerBatteryCo.,Ltd. Receiptofservicesandpurchaseofparts 4,982,359,880.50 12,206,838,245.04 No 2,861,184,810.74 ChongqingQingshanIndustryCo.,Ltd. Receiptofservicesandpurchaseofparts 3,341,968,314.53 11,248,575,075.82 No 4,744,432,632.00 Chongqing Changan Minsheng Logistics Co., Ltd. Receiptofservicesandpurchaseofparts 2,026,563,267.28 7,169,699,758.43 No 1,599,767,925.70 Chenchi (Chongqing) Lightweight Technology Co.,Ltd. Purchaseofparts 527,136,508.87 1,048,348,954.85 No - ChongqingNaiShiSteeringSystemCo.,Ltd. Purchaseofparts 455,588,062.14 1,737,565,863.94 No 615,706,328.87 AVATR (Chongqing) Automobile Sales & ServiceCo.,Ltd. Purchaseofvehiclesandparts 436,918,595.05 3,907,268,534.68 No 203,283,625.29 Hubei Huama Ruili Automobile Lighting Co., Ltd. Purchaseofparts 402,065,391.29 1,684,957,913.68 No 607,797,713.80 SichuanJian'anIndustryCo.,Ltd. Receiptofservicesandpurchaseofparts 386,817,699.34 1,295,452,785.00 No 556,162,903.32 Sichuan Ningjiang Shanchuan Machinery Co., Ltd. Purchaseofparts 347,243,618.03 1,006,470,215.06 No 312,245,749.06 ChongqingWulianTechnologyCo.,Ltd. Receiptofservicesandpurchaseofparts 345,865,948.21 2,474,318,650.46 No 688,953,764.27 SouthwestFaureciaAutomobilePartsCo.,Ltd. Purchaseofparts 319,515,969.25 1,042,469,754.12 No 272,744,066.65 Chenchi(Chongqing)BrakeSystemCo.,Ltd. Receiptofservicesandpurchaseofparts 316,712,483.22 1,374,528,625.82 No 545,634,066.12 Harbin Dong'an Automobile Engine ManufacturingCo.,Ltd. Purchaseofparts 269,440,786.10 970,113,512.80 No 408,671,304.94 Southwest Intal Automotive Air Conditioner Co.,Ltd. Receiptofservicesandpurchaseofparts 228,983,490.41 1,006,677,216.30 No 286,458,494.89
Page 156
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 155 Relatedparty Relatedpartytransactioncontent Amountfortheperiod Approvedtransaction limit Whether exceeding transaction limit Amountforthepriorperiod Chongqing Changxian Intelligent Technology Co.,Ltd. Receiptofservices 214,704,000.24 1,056,000,000.00 No 245,510,019.44 Chengdu Huachuan Electric Equipment Co., Ltd. Receiptofservicesandpurchaseofparts 210,672,308.98 705,506,070.02 No 346,756,124.64 Lear Changan (Chongqing) Automobile SystemsCo.,Ltd. Purchaseofparts 205,926,920.58 821,758,825.24 No 235,571,658.74 ChanganFordAutomobileCo.,Ltd. Receiptofservices 177,107,674.41 1,730,563.38 Yes 640,063.46 GKN DrivelineDrivetrain System (Chongqing) Co.,Ltd. Receiptofservicesandpurchaseofparts 170,282,778.69 569,845,942.61 No 223,519,311.35 ChongqingConstruction vehiclesAir ConditionerCo.,Ltd. Purchaseofparts 158,216,437.99 424,416,453.58 No 147,121,378.71 JianglingHoldingCo.,Ltd. Receiptofservicesandpurchaseofparts 194,727,914.12 32,784,320.65 Yes 2,124,490,381.04 Chongqing Dajiang Dongyang Plastic Products Co.,Ltd. Purchaseofparts 133,448,920.65 477,297,133.66 No 205,855,880.56 United Automobile Electronics (Chongqing) Co.,Ltd. Receiptofservicesandpurchaseofparts 130,292,443.16 627,031,879.46 No 345,007,499.56 YinwangIntelligentTechnologyCo.,Ltd. Purchaseofparts 124,006,282.60 1,875,291,657.73 No 335,802,505.19 HunanTianyanMachineryCo.,Ltd. Purchaseofparts 120,070,057.01 344,190,626.56 No 103,676,523.86 Chongqing Jianshe Transmission Technology Co.,Ltd. Purchaseofparts 116,655,319.82 442,978,759.28 No 139,817,864.17 Chengdu Ziguangming Catalytic Technology Co.,Ltd. Purchaseofparts 113,044,741.09 345,656,802.19 No 156,195,553.96 ChanganAutomobileFinanceCo.,Ltd. Receiptofservices 105,932,452.35 528,736.88 Yes - HarbinDong'anAutomobilePowerCo.,Ltd. Purchaseofparts 100,921,576.45 335,283,954.07 No 123,290,329.97 Chenchi (Chengdu) Intelligent Suspension Co., Ltd. Purchaseofparts 86,993,987.69 160,420,572.24 No 45,521,049.97
Page 157
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 156 Relatedparty Relatedpartytransactioncontent Amountfortheperiod Approvedtransaction limit Whether exceeding transaction limit Amountforthepriorperiod HubeiHuacheLampCo.,Ltd. Purchaseofparts 78,139,682.41 214,675,997.71 No 67,650,436.57 ChengduWanyouFilterCo.,Ltd. Purchaseofparts 76,462,885.22 177,047,474.64 No 84,112,950.33 Chongqing Lingchuan Automobile Parts ManufacturingTechnologyCo.,Ltd. Purchaseofparts 74,955,523.36 230,878,450.62 No 102,006,102.48 Chongqing Shangfang Automobile Parts Co., Ltd. Purchaseofparts 58,024,920.72 236,525,105.84 No 90,118,703.70 Chong'anDaSemiconductorCo.,Ltd. Purchaseofparts 54,795,827.65 250,829,468.40 No 63,094,106.85 ChongqingDajiangYapuAutomobilePartsCo., Ltd. Purchaseofparts 51,837,858.43 325,168,187.63 No 132,993,599.94 ChongqingFuji SupplySupply Chain ManagementCo.,Ltd. Receiptofservicesandpurchaseofparts 49,202,647.94 11,140,151.11 Yes 80,728.30 Guizhou Wanyou Automobile Sales & Service Co.,Ltd. Receiptofservices 35,285,534.70 30,079,236.47 Yes 18,177,174.97 Chengde Sukeng Yinhe Automobile Parts Co., Ltd. Purchaseofparts 33,311,260.77 119,581,470.96 No 58,816,914.06 Chongqing Wanyou Economic Development Co.,Ltd. Receiptofservicesandpurchaseofparts 31,379,427.54 40,896,469.98 No 22,433,334.98 Jiangsu Wanyou Automobile Sales & Service Co.,Ltd. Receiptofservicesandpurchaseofparts 28,950,768.92 22,058,055.04 Yes 16,900,581.07 ChongqingChanganIndustry(Group)Co.,Ltd. Receiptofservices 27,412,049.17 91,607,228.40 No 35,206,202.86 Yunnan Wanyou Automobile Sales & Service Co.,Ltd. Receiptofservices 26,061,615.60 41,944,228.02 No 15,982,384.37 Chongqing Changan Intelligent Industrial TechnologyServiceCo.,Ltd. Receiptofservices 20,678,874.33 60,617,627.95 No 22,400,208.03 ChengduWanyou XiangyuAutomobile Sales & ServiceCo.,Ltd. Receiptofservices 18,362,637.89 27,040,975.98 No 15,968,173.19
Page 158
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 157 Relatedparty Relatedpartytransactioncontent Amountfortheperiod Approvedtransaction limit Whether exceeding transaction limit Amountforthepriorperiod Chengdu LingchuanAutomotiveFuel Tank Co., Ltd. Purchaseofparts 18,313,261.04 83,690,391.60 No 27,128,533.16 Tenneco Lingchuan (Chongqing) Exhaust SystemCo.,Ltd. Purchaseofparts 17,103,863.05 122,107,755.80 No 36,548,398.07 Chongqing Yihong Defense Technology Co., Ltd. Purchaseofparts 14,473,869.80 58,527,146.56 No 23,821,213.98 ChongqingDajiangJiexinForgingCo.,Ltd. Purchaseofparts 13,288,594.30 65,066,598.66 No 26,284,866.84 ChanganMazdaEngineCo.,Ltd. Receiptofservicesandpurchaseofparts 11,431,839.80 2,592,674.40 Yes 1,136,326.24 BeijingWulianTechnologyCo.,Ltd. Purchaseofparts 10,783,429.81 76,084,219.51 No 26,310,829.36 ChengduWanyouAutoTradeServiceCo.,Ltd. Receiptofservicesandpurchaseofparts 9,417,731.62 14,716,762.26 No 5,995,585.06 NanjingLingxingTechnologyCo.,Ltd. Receiptofservices 9,309,958.24 24,896,880.50 No 7,335.98 Anhui Wanyou Automobile Sales & Service Co.,Ltd. Receiptofservices 8,583,638.66 11,095,423.54 No 8,243,534.52 Chenchi AutomobileTechnology Group Co., Ltd. Purchaseofparts 7,838,430.55 1,824,115.16 Yes 282,813,246.48 inQichuangZhikeTechnologyCo.,Ltd. Receiptofservices 7,700,000.00 56,203,563.60 No 2,378,000.00 Chongqing Wanyou Chengxing Automobile Sales&ServiceCo.,Ltd. Receiptofservices 6,654,387.83 4,883,435.17 Yes 2,340,416.43 in China China South Industries Group No. 59 ResearchInstituteCo.,Ltd. Purchaseofparts 6,490,193.38 6,722,407.62 No 1,765,406.33 WanyouAutomobileInvestmentCo.,Ltd. Receiptofservices 5,247,474.26 8,355,393.31 No 5,147,240.90 in China Changan Automobile Group Tianjin SalesCo.,Ltd. Receiptofservices 4,550,753.16 9,754,774.07 No 5,195,312.25 Beijing Beifang Changfu Automobile Sales Co.,Ltd. Receiptofservices 4,492,966.76 326,601.29 Yes 377.36
Page 159
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 158 Relatedparty Relatedpartytransactioncontent Amountfortheperiod Approvedtransaction limit Whether exceeding transaction limit Amountforthepriorperiod ChongqingWanyouDuchengAutomobileSales &ServiceCo.,Ltd. Receiptofservices 3,992,698.82 4,335,473.90 No 1,785,922.67 Chengdu Wanyou Automobile Sales & Service Co.,Ltd. Receiptofservices 3,815,663.54 4,892,090.89 No 1,616,665.61 ChenchiTechnologyCo.,Ltd. Purchaseofparts 3,168,827.62 18,058,621.19 No 14,917,528.47 LongchangShanchuanMachineryCo.,Ltd. Purchaseofparts 2,688,642.68 17,670,556.98 No 10,757,990.86 Southwest Ordnance (Chongqing) Smart TechnologyCo.,Ltd. Receiptofservices 1,769,911.50 958,489.25 Yes - Chongqing Changan Smart City Operation ManagementCo.,Ltd. Receiptofservices 1,567,969.15 13,068,191.22 No 4,219,628.61 SouthwestOrdnanceChongqingEnvironmental ProtectionResearchInstituteCo.,Ltd. Receiptofservices 1,401,591.00 8,363,893.80 No 2,775,490.71 Chongqing Wanyou Human Resources Service Co.,Ltd. Receiptofservices 779,015.01 2,463,355.66 No 846,571.98 Chongqing WanYouzhicheng AutomobileSales &ServiceCo.,Ltd. Receiptofservices 214,260.19 902,837.00 No 10,208.59 BeijingOrdnanceInsuranceBrokerageCo.,Ltd. Receiptofservices 135,690.57 703,822.12 No 560,719.00 NanyangLidaOptoelectronicsCo.,Ltd. Purchaseofparts 124,679.50 1,407,516.00 No 990,165.00 Chengdu Jialing Huaxi Optical Precision MachineryCo.,Ltd. Purchaseofparts 85,453.55 377,277.56 No 161,730.08 Chongqing JiansheHanon AutomobileThermal ManagementSystemCo.,Ltd. Purchaseofparts - 36,747,097.28 No 25,767,591.72 AVATRTechnology(Chongqing)Co.,Ltd. Purchaseofparts - 249,522,877.32 No 25,609,887.34 Chongqing WanYouxingjian AutomobileSales &ServiceCo.,Ltd. Receiptofservices - 1,439,705.17 No 973,851.07 Ya'anWanyouAutomobileSales&ServiceCo., Receiptofservices - 1,161,854.22 No 942,847.76
Page 160
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 159 Relatedparty Relatedpartytransactioncontent Amountfortheperiod Approvedtransaction limit Whether exceeding transaction limit Amountforthepriorperiod Ltd. Chongqing Southwest Inspection and Testing Co.,Ltd. Receiptofservices - 1,320,000.00 No 831,155.74 Chongqing Qingshan Transmission Sales Co., Ltd. Purchaseofparts - 305,113.16 No 428,159.41 Panzhihua Wanyou Automobile Sales & ServiceCo.,Ltd. Receiptofservices - 399,614.80 No 299,619.12 Chongqing WanYouzundaAutomobile Sales & ServiceCo.,Ltd. Receiptofservicesandpurchaseofparts - 478,846.67 No 262,574.29 ChinaOrdnanceNews Receiptofservices - 11,732.40 No 255,530.00 ChinaOrdnanceEquipmentResearchInstitute Receiptofservices - 84,000.00 No 61,320.75 Chongqing Changxiang SupplySupply Chain TechnologyCo.,Ltd. Receiptofservices - 108,000.00 No 43,824.69 ChengduWanyouTradingCo.,Ltd. Receiptofservices - 5,756.08 No 4,577.18 in China China South Industries Group Human ResourcesDevelopmentCenter Receiptofservices - 1,898.94 No 1,792.45
Page 161
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 160 StatementofSalesofGoodsandProvisionofServices Relatedparty Relatedpartytransaction content Amountforthe period Amountforthe priorperiod Chongqing WanYouzundaAutomobile Sales & ServiceCo.,Ltd. Salesofparts 1,524,512,945.39 1,602,869,960.28 MaStChanganAutomobileCo.,Ltd. Sales of vehicles and parts and provision of services 950,646,726.05 1,508,937,061.87 AVATRTechnology(Chongqing)Co.,Ltd. Sales of parts and provisionofservices 939,953,280.48 454,184,680.54 Chongqing Wanyou Economic Development Co.,Ltd. Sales of vehicles and parts and provision of services 835,827,708.79 1,117,433,203.42 ChengduWanyou XiangyuAutomobile Sales & ServiceCo.,Ltd. Sales of vehicles and parts and provision of services 507,444,882.82 1,217,370,204.07 WanyouAutomobileInvestmentCo.,Ltd. Sales of vehicles and parts and provision of services 479,764,156.73 698,939,398.78 ChanganMazdaAutomobileCo.,Ltd. Sales of parts and provisionofservices 187,806,766.62 341,029,419.05 Guizhou Wanyou Automobile Sales & Service Co.,Ltd. Sales of vehicles and parts and provision of services 352,991,427.92 713,283,391.56 Yunnan Wanyou Automobile Sales & Service Co.,Ltd. Sales of vehicles and parts and provision of services 218,519,718.53 277,652,074.66 Jiangsu Wanyou Automobile Sales & Service Co.,Ltd. Sales of vehicles and parts and provision of services 183,380,124.35 467,735,302.55 Chongqing WanYouzhicheng AutomobileSales &ServiceCo.,Ltd. Sales of vehicles and parts 181,381,995.28 610,014,111.81 JianglingHoldingCo.,Ltd. Sales of vehicles and parts and provision of services 147,495,078.33 2,174,698.43 ChanganFordAutomobileCo.,Ltd. Sales of parts and provisionofservices 124,049,680.63 74,343,676.00 in China Changan Automobile Group Tianjin SalesCo.,Ltd. Sales of vehicles and parts and provision of services 109,483,158.37 48,859,647.54 Anhui Wanyou Automobile Sales & Service Co.,Ltd. Sales of vehicles and parts and provision of services 107,241,623.31 156,470,576.53 ChanganMazdaEngineCo.,Ltd. Sales of parts and provisionofservices 96,737,947.91 52,634,932.00 Beijing Beifang Changfu Automobile Sales Co.,Ltd. Sales of vehicles and parts and provision of services 50,671,847.21 2,891,555.29 ChongqingChanganKuanyueVehicleCo.,Ltd. Sales of parts and provisionofservices 37,157,168.11 39,159,030.00 Chongqing Changxian Intelligent Technology Co.,Ltd. Provisionofservices 26,930,680.51 3,585,730.58 ChengduWanyouAutoTradeServiceCo.,Ltd. Sales of vehicles and parts and provision of services 19,331,634.11 30,790,191.73
Page 162
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 161 Relatedparty Relatedpartytransaction content Amountforthe period Amountforthe priorperiod Chenchi (Chongqing) Lightweight Technology Co.,Ltd. Provisionofservices 13,369,415.61 - ChongqingQingshanIndustryCo.,Ltd. Salesofparts 10,323,774.43 19,302,119.71 inChinaChanganAutomobileGroupCo.,Ltd. Provisionofservices 4,787,083.93 - Chongqing Changan Intelligent Industrial TechnologyServiceCo.,Ltd. Provisionofservices 3,835,651.59 8,214,976.84 ChongqingWulianTechnologyCo.,Ltd. Provisionofservices 2,020,317.04 256,370.03 Chongqing Wanyou Chengxing Automobile Sales&ServiceCo.,Ltd. Sales of parts and provisionofservices 1,383,002.71 1,141,491.20 Chengdu Wanyou Automobile Sales & Service Co.,Ltd. Sales of vehicles and parts and provision of services 1,259,275.80 1,306,174.47 ChongqingWanyouDuchengAutomobileSales &ServiceCo.,Ltd. Sales of vehicles and parts and provision of services 1,221,438.75 1,204,449.80 Chongqing Anfu Automobile Marketing Co., Ltd. Sales of complete vehicles 1,657,314.27 13,506,106.24 Chongqing Wanyou Longrui Automobile Sales &ServiceCo.,Ltd. Sales of complete vehicles 548,296.45 - ChinaSouthIndustriesGroupFinanceCo.,Ltd. Provisionofservices 502,402.82 933,603.42 SouthwestOrdnanceChongqingEnvironmental ProtectionResearchInstituteCo.,Ltd. Provisionofservices 466,570.82 2,933,122.49 Chongqing Changan Minsheng Logistics Co., Ltd. Provisionofservices 246,821.70 483,970.12 ChanganAutomobileFinanceCo.,Ltd. Provisionofservices 234,921.69 32,623,352.27 Chongqing Changan Kuanyue Vehicle MarketingCo.,Ltd. Salesofparts 165,973.88 199,665.70 JianglingAutomobileCo.,Ltd. Provisionofservices 114,232.03 - ChongqingJiansheIndustry(Group)Co.,Ltd. Provisionofservices 108,490.57 - NanyangLidaOptoelectronicsCo.,Ltd. Provisionofservices 102,169.81 - HenanDubangOptoelectronicsCo.,Ltd. Provisionofservices 89,141.51 - HubeiHuacheLampCo.,Ltd. Provisionofservices 58,018.87 12,264.15 Chengdu Huachuan Electric Equipment Co., Ltd. Provisionofservices 52,960.09 114,847.82 Chongqing Hongyu Precision Industry Group Co.,Ltd. Provisionofservices 14,150.94 58,015.47 Chongqing Dajiang Dongyang Plastic Products Co.,Ltd. Provisionofservices 7,502.26 - Southwest Ordnance (Chongqing) Smart TechnologyCo.,Ltd. Provisionofservices 3,320.00 19,839.00 Chongqing Yihong Defense Technology Co., Ltd. Provisionofservices 1,911.50 - ChongqingConstruction vehiclesAir ConditionerCo.,Ltd. Provisionofservices 477.88 - United Automobile Electronics (Chongqing) Co.,Ltd. Provisionofservices 477.88 - Taizhou LingXingzhixiang TechnologyCo., Ltd. Sales of complete vehicles - 51,106,193.60
Page 163
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 162 Relatedparty Relatedpartytransaction content Amountforthe period Amountforthe priorperiod Chenchi AutomobileTechnology Group Co., Ltd. Provisionofservices - 4,435,919.04 Hangzhou LingXingyuexiang AutomobileServiceCo.,Ltd. Sales of complete vehicles - 4,159,292.00 Chongqing WanYouxingjian AutomobileSales &ServiceCo.,Ltd. Sales of vehicles and parts and provision of services - 742,128.43 Ya'anWanyouAutomobileSales&ServiceCo., Ltd. Sales of vehicles and parts and provision of services - 577,904.72 ChenchiTechnologyCo.,Ltd. Provisionofservices - 330,188.67 SichuanJian'anIndustryCo.,Ltd. Provisionofservices - 255,598.79 Panzhihua Wanyou Automobile Sales & ServiceCo.,Ltd. Sales of vehicles and parts - 154,309.76 Chongqing Changan Wangjiang Industrial GroupCo.,Ltd. Provisionofservices - 141,509.43 ChongqingFuji SupplySupply Chain ManagementCo.,Ltd. Sales of complete vehicles - 120,300.88 in China China South Industries Group OrdnanceEquipmentResearchInstitute Provisionofservices - 113,207.55 ZhongguangxueGroupCo.,Ltd. Provisionofservices - 84,905.66 ChengduGuangmingOptoelectronicsCo.,Ltd. Provisionofservices - 56,603.77 JiangxiChangjiangChemicalCo.,Ltd. Provisionofservices - 56,603.77 Lear Changan (Chongqing) Automobile SystemsCo.,Ltd. Provisionofservices - 22,230.10 Chenchi(Chongqing)BrakeSystemCo.,Ltd. Provisionofservices - 9,978.58 Dali Wanfu Automobile Sales & Service Co., Ltd. Salesofparts - 9,152.99 Southwest Intal Automotive Air Conditioner Co.,Ltd. Provisionofservices - 5,589.43 Chongqing Jianshe Transmission Technology Co.,Ltd. Provisionofservices - 1,478.12 Chengdu LingchuanAutomotiveFuel Tank Co., Ltd. Provisionofservices - 955.75 Otherrelated-partytransactions Relatedparty Relatedparty transactioncontent Amountforthe period Amountfortheprior period ChanganMazdaEngineCo.,Ltd. Provision of personnel technicalsupport 6,840,996.57 6,834,007.18 ChanganMazdaAutomobileCo.,Ltd. Provision of personnel technicalsupport 6,069,811.47 6,208,770.55 ChanganFordAutomobileCo.,Ltd. Provision of personnel technicalsupport 4,839,180.50 8,311,746.30 Chongqing Changan Minsheng Logistics Co., Ltd. Provision of personnel technicalsupport 1,034,071.24 224,765.20 TimesChanganPowerBatteryCo.,Ltd. Provision of personnel technicalsupport 1,500,000.00 1,000,000.00 TimesonePowerBatteryCo.,Ltd. Provision of personnel 800,000.00 -
Page 164
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 163 Relatedparty Relatedparty transactioncontent Amountforthe period Amountfortheprior period technicalsupport Chong'anDaSemiconductorCo.,Ltd. Provision of personnel technicalsupport 350,000.00 - Chenchi AutomobileTechnology Group Co., Ltd. Provision of personnel technicalsupport 90,794.14 - Changan Ford New Energy Automobile TechnologyCo.,Ltd. Provision of personnel technicalsupport - 2,405,566.01 Chongqing Changan Kuanyue Vehicle Co., Ltd. Provision of personnel technicalsupport - 1,827,886.06 ChongqingWulianTechnologyCo.,Ltd. Provision of personnel technicalsupport - 980,275.80 JianglingAutomobileCo.,Ltd. Provision of personnel technicalsupport - 53,029.62 JianglingHoldingCo.,Ltd. Provision of personnel technicalsupport - 50,292.50 AVATRTechnology(Chongqing)Co.,Ltd. Technology development service fees 14,368,173.95 2,838,398.04 ChanganMazdaAutomobileCo.,Ltd. Technology development service fees 12,097,732.43 2,536,382.00 ChanganMazdaEngineCo.,Ltd. Technology development service fees 2,744,921.66 - MaStChanganAutomobileCo.,Ltd. Technology development service fees 1,702,230.02 - ChongqingQingshanIndustryCo.,Ltd. Technology development service fees 434,254.95 9,693,630.55 JianglingHoldingCo.,Ltd. Technology development service fees - 51,552,126.90 Chongqing Changan Kuanyue Vehicle Co., Ltd. Trademark usage fee income 4,223,066.04 68,860.14 WanyouAutomobileInvestmentCo.,Ltd. Interest income from deferredpaymentsin 794,319.82 60,500.00 Guizhou Wanyou Automobile Sales & Service Co.,Ltd. Interest income from deferredpaymentsin 683,487.69 468,774.82 Chongqing Wanyou Economic Development Co.,Ltd. Interest income from deferredpaymentsin 653,637.65 114,761.43 ChengduWanyou XiangyuAutomobile Sales & ServiceCo.,Ltd. Interest income from deferredpaymentsin 598,805.65 334,791.22 Anhui Wanyou Automobile Sales & Service Co.,Ltd. Interest income from deferredpaymentsin 181,123.60 115,716.99 Yunnan Wanyou Automobile Sales & Service Co.,Ltd. Interest income from deferredpaymentsin 163,608.28 16,000.43 ChengduWanyouAutoTradeServiceCo.,Ltd. Interest income from deferredpaymentsin 68,090.11 119,434.71 in China Changan Automobile Group Tianjin SalesCo.,Ltd. Interest income from deferredpaymentsin 40,567.84 - Jiangsu Wanyou Automobile Sales & Service Co.,Ltd. Interest income from deferredpaymentsin 26,214.16 317,195.31
Page 165
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 164 2、 Associated leasing situation TheCompany,actingastheLessor: Nameoflessee Typeofleased assets Leaseincome recognizedforthe period Leaseincomerecognized forthepriorperiod Chongqing Changan Minsheng Logistics Co., Ltd. Buildings and land 2,673,243.00 384,442.29 Chongqing Wanyou Economic Development Co., Ltd. Buildings and land 337,155.96 337,155.96 AVATR(Chongqing)AutomobileSales &Service Co.,Ltd. Vehicles 391,898.97 53,696.79 AVATRTechnology(Chongqing)Co.,Ltd. Vehicles - 41,075.17
Page 166
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 165 TheCompany,astheLessee: Nameoflessor Typeof leased assets Amountfortheperiod Amountforthepriorperiod Rental expensesfor short-term leasesand leasesof low-value assetsunder simplified treatment Variable lease payments notincluded inthe measurement oflease liabilities Rentpaid Interest expenseon lease liabilities Increasein right-of-use assets Rental expensesfor short-term leasesand leasesof low-value assetsunder simplified treatment Variablelease paymentsnot includedinthe measurement oflease liabilities Rentpaid Interest expenseon lease liabilities Increasein right-of-use assets Chongqing Changan Minsheng Logistics Co., Ltd. Warehouse 1,606,670.05 642,668.02 2,101,524.42 98,202.69 - 3,444,547.17 8,131,278.55 3,444,547.17 107,615.41 - Chongqing WanYouzhicheng AutomobileSales & Service Co., Ltd. Automobile 105,930.00 - - - 177,852.33 - 177,852.33 - -
Page 167
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 166 Otherrelated-partytransactions (1) Matters regarding deposits and loans with China North Industries Group Financial Co., Ltd.: Relatedparties ContentofRelated-Party Transactions 2026.6.30 Financial Co., Ltd. of the Ordnance Equipment Group Monetary funds held for related parties. 19,183,808,345.52 Financial Co., Ltd. of the Ordnance Equipment Group Short-termborrowings 43,703,300.00 Financial Co., Ltd. of the Ordnance Equipment Group Entrustedloan 500,000,000.00 (2) Matters regarding deposits and loans with Changan Automobile Finance Co., Ltd.: Relatedparties ContentofRelated-Party Transactions 2026.6.30 ChanganAutomobileFinanceCo.,Ltd. Monetary funds held for related parties. 10,000,000,000.00 6. Unsettled items such as receivables and payables between related parties. 1、 Receivables Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance Accounts receivable AVATRTechnology(Chongqing)Co.,Ltd. 1,714,361,745.08 1,270,441,118.13 ChanganMazdaAutomobileCo.,Ltd. 334,599,235.60 489,818,149.57 MaStChanganAutomobileCo.,Ltd. 163,622,860.02 39,068,423.29 ChanganFordAutomobileCo.,Ltd. 85,465,472.64 72,068,853.21 JianglingHoldingCo.,Ltd. 61,057,381.37 12,819,563.72 ChanganMazdaEngineCo.,Ltd. 59,773,037.57 67,208,668.30 ChongqingChanganKuanyueVehicleCo.,Ltd. 23,122,601.61 28,133,895.43 Chongqing Changxian Intelligent Technology Co., Ltd. 11,077,630.32 18,316,422.57 Chenchi (Chongqing) Lightweight Technology Co., Ltd. 2,325,111.88 - Chongqing WanYouzhicheng AutomobileSales & ServiceCo.,Ltd. 2,065,371.18 2,065,371.18 TimesChanganPowerBatteryCo.,Ltd. 1,590,000.00 1,530,000.00 TimesonePowerBatteryCo.,Ltd. 848,000.00 477,000.00 Chongqing JiansheHanon AutomobileThermal ManagementSystemCo.,Ltd. 603,972.89 - Harbin Dong'an Automobile Engine Manufacturing Co.,Ltd. 575,237.79 - ChongqingWulianTechnologyCo.,Ltd. 430,572.46 1,250,000.00 Chong'anDaSemiconductorCo.,Ltd. 371,000.00 - ChongqingChanganMinshengLogisticsCo.,Ltd. 157,609.11 1,222,115.79
Page 168
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 167 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance ChongqingJiansheIndustry(Group)Co.,Ltd. 115,000.00 115,000.00 HenanDubangOptoelectronicsCo.,Ltd. 94,490.00 - Chongqing Dajiang Dongyang Plastic Products Co., Ltd. 57,174.40 - Chongqing Changan Kuanyue Vehicle Marketing Co.,Ltd. 46,385.47 72,545.83 ChongqingYihongDefenseTechnologyCo.,Ltd. 25,919.34 - Chongqing Hongyu Precision Industry Group Co., Ltd. 15,000.00 143,428.60 AVATR (Chongqing) Automobile Sales & Service Co.,Ltd. 9,499.99 5,549,429.38 LearChangan(Chongqing)AutomobileSystemsCo., Ltd. 5,040.00 - SouthwestFaureciaAutomobilePartsCo.,Ltd. 2,339.94 - Chongqing Jianshe Transmission Technology Co., Ltd. 2,159.94 - SichuanNingjiangShanchuanMachineryCo.,Ltd. 1,799.95 - ChengduHuachuanElectricEquipmentCo.,Ltd. 539.99 - ChongqingConstructionvehiclesAirConditionerCo., Ltd. 539.99 - Chengdu Wanyou Automobile Sales & Service Co., Ltd. 49.94 50.00 Changan Ford New Energy Automobile Technology Co.,Ltd. - 778,294.12 inChinaChanganAutomobileGroupCo.,Ltd. - - Yunnan Wanyou Automobile Sales & Service Co., Ltd. - 11,314,945.40 ChenchiAutomobileTechnologyGroupCo.,Ltd. - 4,748,610.84 ChenchiAnQi(Chongqing)CircularTechnologyCo., Ltd. - 800,000.00 ChongqingFuji SupplySupply Chain Management Co.,Ltd. - 224,215.89 ChongqingQingshanIndustryCo.,Ltd. - 155,000.00 ChanganAutomobileFinanceCo.,Ltd. - 66,718.80 NanjingLingxingTechnologyCo.,Ltd. - 66,389.36 in China China South Industries Group No. 59 ResearchInstituteCo.,Ltd. - 4,320.00 Guizhou Wanyou Automobile Sales & Service Co., Ltd. - 398.00 Notes receivable WanyouAutomobileInvestmentCo.,Ltd. 1,023,245,000.00 2,551,100,000.00 Chongqing Wanyou Economic Development Co., Ltd. 488,985,600.00 280,000,000.00 AVATRTechnology(Chongqing)Co.,Ltd. 993,074,590.73 1,453,315,665.60 ChengduWanyou XiangyuAutomobile Sales & ServiceCo.,Ltd. 312,600,000.00 140,000,000.00
Page 169
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 168 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance Guizhou Wanyou Automobile Sales & Service Co., Ltd. 214,450,000.00 240,000,000.00 JianglingHoldingCo.,Ltd. - 79,557.88 Jiangsu Wanyou Automobile Sales & Service Co., Ltd. 115,338,000.00 - AnhuiWanyouAutomobileSales&ServiceCo.,Ltd. 83,000,000.00 - in China Changan Automobile Group Tianjin Sales Co.,Ltd. 75,100,000.00 - Yunnan Wanyou Automobile Sales & Service Co., Ltd. 32,100,000.00 - ChongqingChanganKuanyueVehicleCo.,Ltd. 21,164,084.00 - ChengduWanyouAutoTradeServiceCo.,Ltd. 6,700,000.00 - Chongqing Changan Kuanyue Vehicle Marketing Co.,Ltd. - 39,362,933.11 ChongqingQingshanIndustryCo.,Ltd. - 11,652,674.47 Other receivables AVATR (Chongqing) Automobile Sales & Service Co.,Ltd. 433,314.83 47,591.42 ChongqingChanganMinshengLogisticsCo.,Ltd. 1.61 - Chongqing ChangxinZhiqi private equity investmentFund partnership enterprise (limited partnership) - 12,982,140.82 Anhe and Chongqing Dingfeng AutomobileContractual private equity investmentFund - 617,440.00 Chongqing Wanyou Economic Development Co., Ltd. - 183,750.00 Prepayments ChongqingWulianTechnologyCo.,Ltd. 45,920,626.00 - Chongqing WanYouzundaAutomobile Sales & ServiceCo.,Ltd. 4,643.00 4,643.00 BeijingWulianTechnologyCo.,Ltd. - 598,369.42 BeijingOrdnanceInsuranceBrokerageCo.,Ltd. - 143,832.00 AVATR (Chongqing) Automobile Sales & Service Co.,Ltd. - 42,425.64 Benteler Jian'an Automobile Systems (Chongqing) Co.,Ltd. - 180.00 2、 Payables Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance Accounts payable TimesChanganPowerBatteryCo.,Ltd. 2,077,378,607.68 2,519,052,360.07 ChongqingQingshanIndustryCo.,Ltd. 444,298,446.37 1,468,049,625.71
Page 170
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 169 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance AVATR (Chongqing)Automobile Sales & Service Co.,Ltd. 237,967,173.23 169,848,698.91 Chenchi (Chongqing) Lightweight Technology Co.,Ltd. 193,361,141.33 320,506,825.72 JianglingHoldingCo.,Ltd. - 457,192,515.37 ChongqingNaiShiSteeringSystemCo.,Ltd. 169,089,656.39 265,248,181.97 Hubei Huama Ruili Automobile Lighting Co., Ltd. 157,182,184.26 280,176,609.53 SouthwestFaureciaAutomobilePartsCo.,Ltd. 108,988,618.13 189,247,048.62 Chenchi(Chongqing)BrakeSystemCo.,Ltd. 85,195,904.65 150,880,885.56 Southwest Intal Automotive Air Conditioner Co., Ltd. 81,952,359.51 155,311,164.28 HunanTianyanMachineryCo.,Ltd. 67,742,896.20 73,806,737.54 Harbin Dong'an Automobile Engine ManufacturingCo.,Ltd. 60,945,556.85 63,683,197.47 GKN DrivelineDrivetrain System (Chongqing) Co.,Ltd. 53,683,502.36 83,830,554.09 ChongqingConstruction vehiclesAir Conditioner Co.,Ltd. 51,469,425.03 92,373,439.43 SichuanJian'anIndustryCo.,Ltd. 51,180,545.07 132,027,650.33 Chongqing JiansheTransmission Technology Co., Ltd. 40,213,115.50 77,570,902.89 ChongqingChanganMinshengLogisticsCo.,Ltd. 39,626,974.80 131,362,395.58 Chengdu Ziguangming Catalytic Technology Co., Ltd. 36,042,760.11 51,381,344.83 Chongqing Dajiang Dongyang Plastic Products Co.,Ltd. 33,777,024.56 129,528,919.61 ChongqingWulianTechnologyCo.,Ltd. 33,041,992.12 99,418,495.36 Chenchi (Chengdu) Intelligent Suspension Co., Ltd. 32,604,114.92 34,664,284.48 Sichuan Ningjiang Shanchuan Machinery Co., Ltd. 30,165,188.46 179,208,240.58 Chong'anDaSemiconductorCo.,Ltd. 28,864,723.43 51,711,529.84 HarbinDong'anAutomobilePowerCo.,Ltd. 27,128,545.11 34,365,293.06 Chengde Sukeng Yinhe Automobile Parts Co., Ltd. 25,427,087.88 17,297,067.71 Lear Changan (Chongqing) Automobile Systems Co.,Ltd. 24,185,410.86 275,355,076.96 HubeiHuacheLampCo.,Ltd. 22,843,236.73 36,924,298.33 United Automobile Electronics (Chongqing) Co., Ltd. 22,016,408.36 24,815,109.89 ChengduHuachuanElectricEquipmentCo.,Ltd. 21,554,843.56 73,350,307.68 ChongqingShangfangAutomobilePartsCo.,Ltd. 19,318,655.41 34,420,344.53 Chongqing Dajiang Yapu Automobile Parts Co., Ltd. 16,316,264.04 46,462,288.18 Chongqing Lingchuan Automobile Parts ManufacturingTechnologyCo.,Ltd. 15,077,908.52 36,949,048.81
Page 171
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 170 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance ChanganMazdaEngineCo.,Ltd. 11,283,344.10 252,693.00 ChengduWanyouFilterCo.,Ltd. 10,104,620.02 40,054,476.35 ChongqingDajiangJiexinForgingCo.,Ltd. 5,937,273.90 6,993,115.96 ChongqingFuji SupplySupply Chain Management Co.,Ltd. 5,614,440.50 - in China China South Industries Group No. 59 ResearchInstituteCo.,Ltd. 4,289,868.20 1,648,414.77 ChenchiAutomobileTechnologyGroupCo.,Ltd. 4,116,973.23 655,689.19 Tenneco Lingchuan (Chongqing) Exhaust System Co.,Ltd. 4,058,690.44 8,901,575.85 Chengdu Lingchuan AutomotiveFuel Tank Co., Ltd. 3,769,848.03 14,132,224.87 NanjingLingxingTechnologyCo.,Ltd. 3,635,017.50 1,634,432.50 ChongqingYihongDefenseTechnologyCo.,Ltd. 3,253,082.26 8,882,622.79 BeijingWulianTechnologyCo.,Ltd. 2,320,015.06 3,263,596.94 ChenchiTechnologyCo.,Ltd. 1,951,343.02 1,063,880.66 LongchangShanchuanMachineryCo.,Ltd. 1,069,178.75 1,094,139.85 Chongqing Wanyou Economic Development Co., Ltd. 1,067,168.96 2,283,835.00 Chongqing JiansheHanon AutomobileThermal ManagementSystemCo.,Ltd. 668,990.37 1,666,216.20 NanyangLidaOptoelectronicsCo.,Ltd. 137,213.45 48,895.00 Chongqing WanYouzundaAutomobile Sales & ServiceCo.,Ltd. 131,440.00 - Chengdu Jialing Huaxi Optical Precision MachineryCo.,Ltd. 123,877.07 136,625.67 ChongqingJiansheIndustry(Group)Co.,Ltd. 90,189.67 575,587.79 Chongqing Wanyou Human Resources Service Co.,Ltd. 22,674.41 - Hangzhou Chelizi Intelligent Technology Co., Ltd. 12,350.00 12,350.00 YinwangIntelligentTechnologyCo.,Ltd. - 20,010,735.96 ChongqingChanganIndustry(Group)Co.,Ltd. - 218,468.87 ChongqingQingshanTransmissionSalesCo.,Ltd. - 133,928.83 ChengduLingchuanSpecialIndustryCo.,Ltd. - 101,585.16 Chongqing Changjiang Electrician Industrial GroupCo.,Ltd. - 40,143.79 ConstructionIndustryGroup(Yunnan)Co.,Ltd. - 18,798.73 AVATRTechnology(Chongqing)Co.,Ltd. - 6,859.51 ChengduWanyou XiangyuAutomobile Sales & ServiceCo.,Ltd. - 2,700.00 in China Changan Automobile Group Tianjin SalesCo.,Ltd. - 1,800.00 Notes payable
Page 172
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 171 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance TimesChanganPowerBatteryCo.,Ltd. 4,566,514,762.68 2,942,318,849.83 JianglingHoldingCo.,Ltd. - 1,168,985,198.42 ChongqingQingshanIndustryCo.,Ltd. 425,885,262.31 828,756,707.82 ChongqingChanganMinshengLogisticsCo.,Ltd. 410,641,978.56 495,189,780.65 Hubei Huama Ruili Automobile Lighting Co., Ltd. 290,793,082.99 401,019,281.55 Southwest Intal Automotive Air Conditioner Co., Ltd. 203,982,382.56 194,397,790.26 Harbin Dong'an Automobile Engine ManufacturingCo.,Ltd. 191,533,245.13 70,342,619.22 Chongqing Dajiang Dongyang Plastic Products Co.,Ltd. 156,057,384.87 95,699,689.14 GKN DrivelineDrivetrain System (Chongqing) Co.,Ltd. 140,402,146.72 158,555,586.28 SouthwestFaureciaAutomobilePartsCo.,Ltd. 135,855,710.05 107,121,575.53 HarbinDong'anAutomobilePowerCo.,Ltd. 120,476,660.45 41,164,010.46 HunanTianyanMachineryCo.,Ltd. 119,560,114.95 148,756,855.34 Chengdu Ziguangming Catalytic Technology Co., Ltd. 107,191,137.39 87,450,311.12 Chong'anDaSemiconductorCo.,Ltd. 84,038,941.80 106,110,908.41 HubeiHuacheLampCo.,Ltd. 77,922,014.18 19,135,621.64 SichuanJian'anIndustryCo.,Ltd. 75,696,261.04 45,560,000.00 Chenchi (Chengdu) Intelligent Suspension Co., Ltd. 69,725,371.36 56,213,167.59 Chongqing Dajiang Yapu Automobile Parts Co., Ltd. 56,923,998.27 92,942,388.71 in China China South Industries GroupCommercialfactoringCo.,Ltd. 52,936,446.56 - ChengduWanyouFilterCo.,Ltd. 45,696,571.10 24,641,534.71 ChongqingShangfangAutomobilePartsCo.,Ltd. 40,131,354.39 44,319,796.09 Chongqing JiansheTransmission Technology Co., Ltd. 31,245,282.58 27,492,312.38 Tenneco Lingchuan (Chongqing) Exhaust System Co.,Ltd. 28,773,172.58 80,359,502.73 Chenchi (Chongqing) Lightweight Technology Co.,Ltd. 26,406,032.55 49,018,599.24 Chongqing Lingchuan Automobile Parts ManufacturingTechnologyCo.,Ltd. 16,981,442.93 34,258,031.45 ChongqingDajiangJiexinForgingCo.,Ltd. 15,731,936.30 34,206,541.87 ChongqingYihongDefenseTechnologyCo.,Ltd. 14,827,631.75 20,307,787.77 Chengdu Lingchuan AutomotiveFuel Tank Co., Ltd. 10,984,852.88 961,311.52 Sichuan Ningjiang Shanchuan Machinery Co., Ltd. 9,713,058.85 29,932,721.08 ChengduHuachuanElectricEquipmentCo.,Ltd. 9,438,252.36 5,625,504.00 Chenchi(Chongqing)BrakeSystemCo.,Ltd. 8,197,216.55 81,882,526.12
Page 173
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 172 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance ChongqingConstruction vehiclesAir Conditioner Co.,Ltd. 5,725,295.45 782,839.01 AVATRTechnology(Chongqing)Co.,Ltd. 5,570,736.85 1,221,863.37 ChenchiAutomobileTechnologyGroupCo.,Ltd. 4,637,368.95 17,801,268.06 Chongqing Saimei Digital Intelligence TechnologyCo.,Ltd. 3,028,017.60 - in China China South Industries Group No. 59 ResearchInstituteCo.,Ltd. 2,944,841.55 2,222,495.38 LongchangShanchuanMachineryCo.,Ltd. 2,126,325.14 1,209,670.71 ChenchiTechnologyCo.,Ltd. 886,995.75 - Chongqing JiansheHanon AutomobileThermal ManagementSystemCo.,Ltd. 410,350.67 7,478,788.77 Southwest Ordnance Chongqing Environmental ProtectionResearchInstituteCo.,Ltd. 305,814.48 - Chengdu Jialing Huaxi Optical Precision MachineryCo.,Ltd. 21,938.70 80,121.59 NanyangLidaOptoelectronicsCo.,Ltd. - 1,348,790.75 Other payables NanchangJianglingInvestmentCo.,Ltd. 1,218,694,485.77 - ChongqingChanganMinshengLogisticsCo.,Ltd. 745,526,817.59 834,089,329.59 ChongqingChangxianIntelligentTechnologyCo., Ltd. 93,433,845.09 71,122,203.75 ChongqingFuji SupplySupply Chain Management Co.,Ltd. 50,068,812.45 6,000.00 Chongqing WanYouzundaAutomobile Sales & ServiceCo.,Ltd. 40,122,096.25 30,640.19 ChanganFordAutomobileCo.,Ltd. 32,045,604.99 69,791,577.55 TimesChanganPowerBatteryCo.,Ltd. 3,725,680.43 19,342,287.18 Chongqing Wanyou Economic Development Co., Ltd. 3,470,932.96 4,275,792.00 JiangsuWanyouAutomobile Sales & ServiceCo., Ltd. 3,035,341.14 6,091,338.00 ChongqingQingshanIndustryCo.,Ltd. 2,655,265.91 12,829,021.25 Chongqing Changan Intelligent Industrial TechnologyServiceCo.,Ltd. 2,112,050.42 2,758,053.43 YunnanWanyouAutomobileSales &ServiceCo., Ltd. 1,857,832.16 3,382,108.00 ChongqingWulianTechnologyCo.,Ltd. 1,580,225.87 66,732.76 SichuanJian'anIndustryCo.,Ltd. 1,368,992.45 2,326,580.42 United Automobile Electronics (Chongqing) Co., Ltd. 1,297,440.00 3,956,563.83 AVATRTechnology(Chongqing)Co.,Ltd. 1,290,938.50 9,913,578.31 Chongqing Changan Smart City Operation ManagementCo.,Ltd. 1,159,119.52 4,003,530.51 ChongqingChanganIndustry(Group)Co.,Ltd. 926,538.76 933,552.33 Hubei Huama Ruili Automobile Lighting Co., Ltd. 517,280.00 517,280.00
Page 174
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 173 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance Chenchi(Chongqing)BrakeSystemCo.,Ltd. 392,562.00 - Chongqing Saimei Digital Intelligence TechnologyCo.,Ltd. 378,502.20 1,514,008.80 Chengdu Wanyou Automobile Sales & Service Co.,Ltd. 322,879.00 349,366.00 WanyouAutomobileInvestmentCo.,Ltd. 307,909.40 1,290,929.00 ChengduWanyou XiangyuAutomobile Sales & ServiceCo.,Ltd. 281,906.18 967,508.00 Anhui Wanyou Automobile Sales & Service Co., Ltd. 272,349.63 618,529.00 Chongqing Dajiang Yapu Automobile Parts Co., Ltd. 262,286.40 13,225.52 Guizhou Wanyou Automobile Sales & Service Co.,Ltd. 231,546.06 727,500.00 ChengduWanyouAutoTradeServiceCo.,Ltd. 219,827.16 682,028.00 ChengduWanyouFilterCo.,Ltd. 166,675.00 120,000.00 in China Changan Automobile Group Tianjin SalesCo.,Ltd. 115,187.00 831,683.00 inChinaChanganAutomobileGroupCo.,Ltd. 113,000.00 - ChongqingWanyouDuchengAutomobileSales & ServiceCo.,Ltd. 90,253.50 2,814.00 GKN DrivelineDrivetrain System (Chongqing) Co.,Ltd. 81,173.55 313,658.96 ChanganMazdaEngineCo.,Ltd. 31,551.41 66,838.01 Beijing Beifang Changfu Automobile Sales Co., Ltd. 25,258.14 200,000.00 Southwest Intal Automotive Air Conditioner Co., Ltd. 21,187.50 704,965.20 ChengduHuachuanElectricEquipmentCo.,Ltd. 11,188.41 28,137.00 Chongqing Wanyou ChengxingAutomobile Sales &ServiceCo.,Ltd. 5,215.00 56,277.00 Southwest Ordnance Chongqing Environmental ProtectionResearchInstituteCo.,Ltd. 1,696.00 824,234.02 YinwangIntelligentTechnologyCo.,Ltd. - 15,935,987.44 inQichuangZhikeTechnologyCo.,Ltd. - 2,231,088.00 Harbin Dong'an Automobile Engine ManufacturingCo.,Ltd. - 1,819,795.77 HarbinDong'anAutomobilePowerCo.,Ltd. - 994,371.75 ChenchiAutomobileTechnologyGroupCo.,Ltd. - 911,597.56 Chenchi (Chongqing) Lightweight Technology Co.,Ltd. - 864,775.44 Lear Changan (Chongqing) Automobile Systems Co.,Ltd. - 794,855.74 HangzhouZhiyuanResearchInstituteCo.,Ltd. - 747,500.00 ShanghaiJiaxingAutomobileServiceCo.,Ltd. - 443,272.50 Xi'an Ordnance Industry Special Equipment InspectionCo.,Ltd. - 257,458.98
Page 175
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 174 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance Chongqing Southwest Inspection andTesting Co., Ltd. - 161,621.43 Chongqing WanYouzhicheng AutomobileSales & ServiceCo.,Ltd. - 150,932.29 ChongqingShangfangAutomobilePartsCo.,Ltd. - 112,642.92 ChongqingNaiShiSteeringSystemCo.,Ltd. - 109,360.11 Chenchi (Chengdu) Intelligent Suspension Co., Ltd. - 33,499.20 Chongqing WanYouxingjian AutomobileSales & ServiceCo.,Ltd. - 100.00 Contract liabilities WanyouAutomobileInvestmentCo.,Ltd. 169,511,597.08 168,512,424.89 ChengduWanyou XiangyuAutomobile Sales & ServiceCo.,Ltd. 162,105,265.69 92,030,844.48 Chongqing Wanyou Economic Development Co., Ltd. 133,309,140.74 188,226,536.62 Guizhou Wanyou Automobile Sales & Service Co.,Ltd. 89,753,793.92 54,348,387.54 Chongqing WanYouzhicheng AutomobileSales & ServiceCo.,Ltd. 67,094,428.39 11,577,578.21 YunnanWanyouAutomobileSales &ServiceCo., Ltd. 66,566,931.26 37,893,132.10 Anhui Wanyou Automobile Sales & Service Co., Ltd. 38,905,672.24 29,364,968.26 Chongqing WanYouzundaAutomobile Sales & ServiceCo.,Ltd. 36,500,412.29 104,306,920.97 MaStChanganAutomobileCo.,Ltd. 30,915,083.01 10,784,533.95 in China Changan Automobile Group Tianjin SalesCo.,Ltd. 30,794,639.52 11,409,714.38 JiangsuWanyouAutomobile Sales & ServiceCo., Ltd. 24,618,484.15 28,757,008.91 inChinaChanganAutomobileGroupCo.,Ltd. 16,980,071.32 16,968,311.32 ChengduWanyouAutoTradeServiceCo.,Ltd. 5,316,011.04 5,866,177.17 ChanganAutomobileFinanceCo.,Ltd. 2,189,046.73 606,371.69 Beijing Beifang Changfu Automobile Sales Co., Ltd. 935,686.09 6,918,517.43 in China China South Industries Group Ordnance EquipmentResearchInstitute 759,366.75 759,366.75 Sichuan Ningjiang Shanchuan Machinery Co., Ltd. 687,162.09 - ChongqingChanganMinshengLogisticsCo.,Ltd. 452,308.38 439,504.23 ChongqingQingshanIndustryCo.,Ltd. 445,603.99 - ChongqingWulianTechnologyCo.,Ltd. 355,862.48 - Chongqing Wanyou ChengxingAutomobile Sales &ServiceCo.,Ltd. 337,990.27 165,943.08 ChengduHuachuanElectricEquipmentCo.,Ltd. 242,796.81 -
Page 176
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 175 Itemname Relatedparty Endofperiodbook balance Beginningofprior yearbookbalance Chengdu Wanyou Automobile Sales & Service Co.,Ltd. 150,787.89 135,054.95 ChongqingWanyouDuchengAutomobileSales & ServiceCo.,Ltd. 100,411.15 147,300.89 HarbinDong'anAutomobilePowerCo.,Ltd. 96,320.00 - ChenchiTechnologyCo.,Ltd. 35,800.00 - SichuanJian'anIndustryCo.,Ltd. 35,100.00 - ChinaSouthIndustriesGroupFinanceCo.,Ltd. 21,300.00 - ChongqingChanganIndustry(Group)Co.,Ltd. 14,221.90 14,221.90 Chenchi (Chongqing) Lightweight Technology Co.,Ltd. 14,120.00 1,140,830.32 Harbin Dong'an Automobile Engine ManufacturingCo.,Ltd. 13,428.72 - in China China South Industries GroupCommercialfactoringCo.,Ltd. 5,040.00 - LuoyangNorthernEnterpriseGroupCo.,Ltd. 4,660.00 - ChongqingJiansheAutomobileSystemsCo.,Ltd. 4,160.00 - ChongqingShangfangAutomobilePartsCo.,Ltd. 3,980.00 3,980.00 ChanganMazdaAutomobileCo.,Ltd. 1,600.00 - China Changan Automobile Group Shenzhen InvestmentCo.,Ltd. 1,140.00 - Chongqing Wanyou Automobile Sales & Service Co.,Ltd. 600.00 - ChongqingFuji SupplySupply Chain Management Co.,Ltd. 500.00 602.65 Southwest Intal Automotive Air Conditioner Co., Ltd. 93.51 - ChongqingQingshanTransmissionSalesCo.,Ltd. 64.07 - ChanganFordAutomobileCo.,Ltd. 1.52 1.84 Chenchi AnQi (Chongqing) Circular Technology Co.,Ltd. - 848,000.00 Panzhihua Wanyou Automobile Sales & Service Co.,Ltd. - 93.51 DaliWanfuAutomobileSales&ServiceCo.,Ltd. - 9.69
Page 177
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 176 XV. Share-based Payment 1. Share-based payment expenses Grantees Amountfortheperiod Amountforthepriorperiod Settlementof equity-settled share-based payment Cash-settled share-based payment Total Settlementof equity-settled share-based payment Cash-settled share-based payment Total Employees 15,696,797.33 15,696,797.33 Total 15,696,797.33 15,696,797.33 XVI. Commitments and Contingencies 1、 Significant commitments existing as of the balance sheet date. Contractedbutnotprovisioned. Closingbalance Balance at the end of the previousyear Capitalcommitment 6,394,547,257.45 7,580,145,740.71 InvestmentCommitment 1,639,000,000.00 2,486,000,000.00 Total 8,033,547,257.45 10,066,145,740.71 XVII. Events After the Balance Sheet Date None XVIII. Notes to Major Items in the Parent Company's Financial Statements 1. Accounts Receivable 1、 Accounts receivable are disclosed by aging. Aging Balanceatendofperiod Balanceatbeginningofprioryear 1Withinoneyear(including1years) 25,256,850,319.85 23,856,071,074.50 1to2year 436,820,560.09 172,874,324.08 2to3year 14,628,002.52 844,754.52 3yearsandabove 220,797,211.73 243,748,449.85 Subtotal 25,929,096,094.19 24,273,538,602.95 Less:baddebtprovision 70,491,048.92 70,362,828.48 Total 25,858,605,045.27 24,203,175,774.47
Page 178
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 177 2、 Disclosure of accounts receivable classified by the method of provision for bad debts. Category Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Baddebtprovision Bookvalue Bookbalance Baddebtprovision Bookvalue Amount Ratio (%) Amount Provision ratio(%) Amount Ratio (%) Amount Provision ratio(%) Bad debt provision made individually 866,019,335.93 3.34 37,652,846.20 4.35 828,366,489.73 47,086,808.46 0.19 37,652,846.20 79.96 9,433,962.26 By credit riskBad debt provision provided by characteristic portfolio 25,063,076,758.26 96.66 32,838,202.72 0.13 25,030,238,555.54 24,226,451,794.49 99.81 32,709,982.28 0.14 24,193,741,812.21 Total 25,929,096,094.19 100.00 70,491,048.92 25,858,605,045.27 24,273,538,602.95 100.00 70,362,828.48 24,203,175,774.47
Page 179
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 178 Accounts receivable for which provision for bad debts is accrued based on a combinationofcreditriskcharacteristics: Name Balanceatendofperiod Accountsreceivable Baddebtprovision Provisionratio(%) 1Within one year (including1years) 24,428,483,830.12 146,647.69 0.00 1to2year 436,820,560.09 31,215.07 0.01 2to3year 14,628,002.52 2,818.05 0.02 3yearsandabove 183,144,365.53 32,657,521.91 17.83 Total 25,063,076,758.26 32,838,202.72 3、 Details of the provision for bad debts accrued, reversed, or recovered in the current period. Category Balanceat beginningof prioryear CurrentperiodChangeinamount Balanceat endofperiodProvision Recovery orreversal ReversalOrWrite-off Other changes Bad debt provision madeindividually 37,652,846.20 37,652,846.20 By credit riskBad debt provision provided by characteristic portfolio 32,709,982.28 128,220.44 32,838,202.72 Total 70,362,828.48 128,220.44 70,491,048.92 4、 Status of accounts receivable and contract assets aggregated by the top five debtors at the end of the period. As of June 30, 2026, the aggregate balance of the top five accounts receivable amounted to RMB 18,962,246,382.73, representing 72.62% of the combined endingbalanceofaccountsreceivableandcontractassets. 2. Other receivables Item Balanceatendofperiod Balanceatbeginningof prioryear Otherreceivablesitem 253,436,165.07 222,763,091.21 Total 253,436,165.07 222,763,091.21 1、 Other receivables are disclosed by aging. Aging Balanceatendofperiod Balanceatbeginningofprior year 1Withinoneyear(including1years) 242,008,751.99 207,731,911.19 1to2year 4,461,810.54 9,841,659.18 2to3year 2,354,699.69 4,368,804.90 3yearsandabove 12,145,917.68 8,089,565.38 Subtotal 260,971,179.90 230,031,940.65
Page 180
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 179 Aging Balanceatendofperiod Balanceatbeginningofprior year Less:baddebtprovision 7,535,014.83 7,268,849.44 Total 253,436,165.07 222,763,091.21
Page 181
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 180 2、 Other receivables are disclosed by classification according to the impairment provision method. Category Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Baddebtprovision Bookvalue Bookbalance Baddebtprovision Bookvalue Amount Ratio (%) Amount Provision ratio(%) Amount Ratio (%) Amount Provision ratio(%) Bad debt provision madeindividually 6,842,932.77 2.62 6,842,932.77 100.00 6,842,932.77 2.97 6,842,932.77 100.00 By credit riskBad debt provision provided by characteristic portfolio 254,128,247.13 97.38 692,082.06 0.27 253,436,165.07 223,189,007.88 97.03 425,916.67 0.19 222,763,091.21 Total 260,971,179.90 100.00 7,535,014.83 253,436,165.07 230,031,940.65 100.00 7,268,849.44 222,763,091.21
Page 182
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 181 Other receivables for which provision for bad debts is accrued based on a combinationofcreditriskcharacteristics: Name Balanceatendofperiod Otherreceivablesitem Baddebtprovision Provisionratio(%) 1Withinoneyear(including1years) 242,008,751.99 36,246.46 1to2year 4,461,810.54 43,804.22 0.98 2to3year 2,354,699.69 57,435.16 2.44 3yearsandabove 5,302,984.91 554,596.22 10.46 Total 254,128,247.13 692,082.06 3、 Provision for Bad Debts Accrual Status Baddebtprovision Stage1 Stage2 Stage3 TotalFuture12Expected creditlossover months Expectedcreditloss overtheentire duration(Nocredit impairment incurred) Expectedcreditloss overtheentire duration(Credit impairment incurred) Balance at beginning of prior year 425,916.67 6,842,932.77 7,268,849.44 Balance at beginning of prior yearincurrentperiod --TransfertoStage2 --TransfertoStage3 --TransferbacktoStage2 --TransferbacktoStage1 Currentperiodprovision 266,165.39 266,165.39 Currentperiodreversal CurrentperiodReversal CurrentperiodWrite-off Otherchanges Balanceatendofperiod 692,082.06 6,842,932.77 7,535,014.83 4、 Details of the provision for bad debts accrued, reversed, or recovered in the current period. Category Balanceat beginningof prioryear CurrentperiodChangeinamount Balanceatend ofperiodProvision Recovery or reversal ReversalOrWrite-off Other changes Bad debt provision madeindividually 6,842,932.77 6,842,932.77 By credit riskBad debt provision provided by characteristic portfolio 425,916.67 266,165.39 692,082.06 Total 7,268,849.44 266,165.39 7,535,014.83
Page 183
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 182 5、 Classification by nature of funds Natureofpayments Endofperiodbookbalance Beginningofprioryearbookbalance Advance equity investment payment 617,441.00 3,112,440.00 Subsidyreceivable 8,654,934.00 71,382,934.00 Pettycash 100,055,426.99 46,884,458.39 Internaltransactions 109,766,750.62 5,444,971.04 Depositsandguarantees 19,512,200.28 Other 22,364,427.01 103,207,137.22 Total 260,971,179.90 230,031,940.65 6、 Details of the top five other receivables by debtor at the end of the period based on the aging of accounts receivable. As ofJune30,2026,thecombinedendingbalanceofthetopfive otherreceivables amounted to RMB 138,543,847.89, representing 53.09% of the total ending balanceofotherreceivables. 3. Long-term equity investment Item Balanceatendofperiod Balanceatbeginningofprioryear Bookbalance Impairment provision Bookvalue Bookbalance Impairment provision Bookvalue Investment in subsidiaries 12,846,133,928.68 49,194,195.00 12,796,939,733.68 12,614,133,927.68 49,194,195.00 12,564,939,732.68 Investments in associates and joint ventures 18,160,989,411.97 18,160,989,411.97 18,236,929,191.74 18,236,929,191.74 Total 31,007,123,340.65 49,194,195.00 30,957,929,145.65 30,851,063,119.42 49,194,195.00 30,801,868,924.42
Page 184
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 183 1、 Investments in associates and joint ventures. Investeeunit Balanceattheendofthe previousyear (bookvalue) Impairment provision Balanceattheend ofthepreviousyear Changesinthecurrent period Closingbalance (bookvalue) Impairmentprovision Closingbalance 1.Jointventure NanchangJianglingInvestmentCo.,Ltd. 2,662,903,407.38 152,172,675.29 2,815,076,082.67 ChanganMazdaAutomobileCo.,Ltd. 638,012,017.99 -4,326,613.65 633,685,404.34 ChanganMazdaEngineCo.,Ltd. 809,563,220.38 -152,201.12 809,411,019.26 ChanganFordAutomobileCo.,Ltd. 1,177,568,078.19 130,698,343.83 1,308,266,422.02 Subtotal 5,288,046,723.94 278,392,204.35 5,566,438,928.29 2.Jointventureenterprises ChanganAutomobileFinanceCo.,Ltd. 5,603,721,114.14 188,068,528.00 5,791,789,642.14 Nanjing Lingxing Equity Investment Partnership (Limited Partnership) 3,123,552,090.24 -29,504.04 3,123,522,586.20 CATARCIntelligentDrivingTechnologyCo.,Ltd. 420,296,556.11 -1,746,697.00 418,549,859.11 ChongqingChanganKuayueVehicleCo.,Ltd. 258,998,406.22 -11,954,505.83 247,043,900.39 Chongqing Changxin Zhiji Private Equity Investment Fund Partnership(LimitedPartnership) 264,750,946.49 -12,171,756.87 252,579,189.62 ChanganTimesNewEnergyBatteryCo.,Ltd. 206,795,435.90 107,341,457.35 314,136,893.25 ChongqingChangxianIntelligentTechnologyCo.,Ltd. 123,022,076.92 -1,356,375.96 121,665,700.96 Chongqing Chang'an Innovation Private Equity Investment FundPartnership(LimitedPartnership) 167,691,152.12 -521,683.78 167,169,468.34 ChanganFordNewEnergyAutomotiveTechnologyCo.,Ltd. 153,148,103.41 697,535.63 153,845,639.04 Anhe Chongqing Dingfeng Automotive Contractual Private EquityInvestmentFund 62,063,111.61 78.47 62,063,190.08
Page 185
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 184 Investeeunit Balanceattheendofthe previousyear (bookvalue) Impairment provision Balanceattheend ofthepreviousyear Changesinthecurrent period Closingbalance (bookvalue) Impairmentprovision Closingbalance HunanGuoxinSemiconductorTechnologyCo.,Ltd. 28,211,161.19 -455,662.26 27,755,498.93 NanjingLingxingEquityInvestmentManagementCo.,Ltd. 1,094,810.00 -6,382.78 1,088,427.22 NanjingChelaiTravelTechnologyCo.,Ltd. 326,831.47 14.86 326,846.33 AvatrTechnology(Chongqing)Co.,Ltd. 2,437,325,004.87 -621,902,499.46 1,815,422,505.41 Chongqing Changyu Private Equity Investment Fund Partnership(LimitedPartnership) 75,033,392.06 -974,982.65 74,058,409.41 ChongqingChang'anKuayueVehicleMarketingCo.,Ltd. 1,239,482.34 -1,239,482.34 ChenzhiAnqi(Chongqing)CircularTechnologyCo.,Ltd. 21,612,792.71 -528,701.99 21,084,090.72 Chongqing Changyuxinhe Private Equity Investment Fund Partnership(LimitedPartnership) 2,448,636.53 2,448,636.53 Subtotal 12,948,882,467.80 -354,331,984.12 12,594,550,483.68 Total 18,236,929,191.74 -75,939,779.77 18,160,989,411.97
Page 186
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 185 4. Operating revenue and operating costs 1、 Status of operating revenue and operating costs Item Amountfortheperiod Amountforthepriorperiod Receivedin Becomecurrent Receivedin Becomecurrent Mainbusiness 40,097,156,312.14 36,588,371,752.81 45,833,419,037.07 42,359,995,925.72 Otherbusiness 4,039,911,645.56 2,675,889,742.39 4,158,828,395.35 2,265,793,194.99 Total 44,137,067,957.70 39,264,261,495.20 49,992,247,432.42 44,625,789,120.71 5. Investment returns Item Amountfortheperiod Amountfortheprior period Investmentincomefromlong-termequityinvestmentsaccountedforusingcost method 1,188,000,000.00 396,000,000.00 Investment income from long-term equity investments accounted for using equitymethod -164,640,970.82 23,105,164.21 Investment income during the holding period of financial assets held for trading 1,353,199.70 Interestincomefromtimedepositsduringholdingperiod 90,814,236.03 43,553,124.93 Dividend income from other equity instrument investments during holding period 15,041,910.38 12,692,880.00 Investmentincomefromdisposaloffinancialassetsheldfortrading 2,627.55 Total 1,129,217,803.14 476,704,368.84 XIX. Supplementary Materials (一) Statement of Details of Non-Recurring Gains and Losses for the Current Period Item Amount Description Gains and losses on disposal of non-current assets, including reversal of asset impairment provisions 75,172,176.38 Government subsidies recognized in current profit or loss, except for those closely related to the Company's normal business, in compliance with national policies, enjoyed according to establishedstandards,andhavingasustainedimpactontheCompany'sprofitorloss 99,005,867.00 Gains and losses on fair value changes of financial assets andliabilities held by non-financial enterprises and gains and losses on disposal of financial assets and liabilities, other than effectivehedgingtransactionsinthenormalcourseofbusiness 40,186,067.03 Feeschargedtonon-financialenterprisesforuseoffundsrecognizedincurrentprofitorloss 63,731,822.45 Non-sameUndercommoncontrolIncomefrombusinesscombination 161,016,229.92 Reversalofimpairmentprovisionforreceivablestestedindividually 9,318,582.52 Othernon-operatingincomeandexpensesotherthanthoseabove 9,823,432.08 Otheritemsmeetingthedefinitionofnon-recurringgainsandlosses 152,504,327.43 Subtotal 610,758,504.81 Incometaxeffect 14,770,091.44 Effectofnon-controllinginterests(aftertax) 29,419,578.14
Page 187
ChongqingChanganAutomobileCo.,Ltd.2026Semi-AnnualReport 186 Item Amount Description Total 566,568,835.23 (二) Return on Equity and Earnings Per Share Profitforthereportingperiod Weightedaverage returnonnetassets (%) Earningspershare(RMB) Basicearnings pershare Diluted earningsper share NetprofitattributabletoordinaryshareholdersoftheCompany 1.06 0.08 0.08 Net profit attributable to ordinary shareholders after deducting non-recurring gainsandlosses 0.33 0.03 0.03 Chongqing Changan Automobile Co., Ltd. August 29, 2026