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1、ContentsChairmans Statement2Corporate Information5Report of the Directors6Management Discussion and Analysis16Directors,Supervisors and Senior Management26Unaudited Interim Condensed Consolidated Financial Statements and Notes28Definitions602023 Interim Report2Chairmans StatementDear Shareholders,On

2、 behalf of the Board of Directors,I hereby present the 2023 interim results of Dongfeng Motor Group for your review.Since the beginning of 2023,Chinas automobile market has been recovering but is subject to great pressure,witnessing lacklustre demands and wider gap between and among segments.Specifi

3、cally,the export vehicle business and the new energy vehicle market grew rapidly;the independent brand vehicle business maintained steady growth;but joint-invested non-luxury vehicles recorded declining sales volume,and the commercial vehicle market gained a recovery that was lower than expectations

4、.Faced with the profound changes,the Group remained committed to the“Three-Year Transition Action Plan”,further promoted implementation of strategies,accelerated the development of new energy segment,vigorously advanced transition and upgrading,and ensured business stability and sustainability by st

5、rictly following the plan that emphasized to“improve the capability and consolidate the foundation,keep a firm determination and strengthen independent development,enhance abilities to boost transformation,gather strength to improve the system,reinforce execution to promote effective plan implementa

6、tion”.During the period,approximately 945,500 vehicles were sold,representing a year-on-year decrease of 23.4%.The independent brand passenger vehicle business achieved sales volume of approximately 156,800 units,representing a year-on-year decrease of 30.9%.The commercial vehicle segment recorded s

7、ales volume of approximately 175,800 units,representing a year-on-year increase of 0.7%.The new energy vehicle segment achieved sales volume of approximately 119,600 units,indicating an improvement of 2.2 percentage points in the contribution to the Groups overall sales performance,and the high-end

8、brand VOYAH witnessed a year-on-year increase of 118.5%in sales volume.Affected by a contracting market share of the joint-invested non-luxury vehicle segment,the Groups joint-invested vehicle business recorded sales volume of 612,900 units;particularly,sales volume of Dongfeng Nissan and Dongfeng H

9、onda decreased year on year by 28.0%and 32.8%respectively.The export vehicle business maintained a positive growth and recorded export of 81,200 vehicles,registering year-on-year increase of 28.1%and hitting a record high.During the period,the Group achieved sales revenue of RMB45,677 million,net pr

10、ofit attributable to equity holders of the company of RMB1,270 million and net profit margin of 2.8%.As the Group further advanced the strategic new energy transition and continuously increased input in new energy brand building,platform,products,key components and core technological resources,the n

11、ew energy R&D investment rose by 49.2%year on year during the period.Under the Groups efforts in improving asset structure and operation efficiency,the gearing ratio stayed at 47.8%and registered a year-on-year decrease of 2.0 percentage points.Dongfeng Motor Group Company Limited3Chairmans Statemen

12、t(Continued)Acting in line with the overall objectives of the“14th Five-Year Plan”and unswervingly promoting the“Three-Year Transition Action Plan”,the Group further advanced the transformation to a preeminent technology-driven enterprise and achieved new progress in development of independent brand

13、 new energy vehicles and core technologies and in deepening reform.On the one hand,the Group advanced brand and product portfolio expansion to accelerate development of the new energy vehicle segment.It developed independent new energy brands and products that covered luxury end,high end,mainstream

14、class and compact class,and strongly boosted“Product Upgrade”,“Brand Advancement”and“Value Increment”.For the M HERO brand targeted at the luxury electric offroad market,M-Hero 917,the first product of the series,was officially launched at Chengdu Motor Show and is now in the mass production,expecte

15、d to be delivered to customers soon.VOYAH,the brand for high-end new energy vehicle market,realized the strategic deployment of“Three Products and Three Categories within Three Years”,built the high-end product matrix comprising SUV,MPV and sedan,and launched FREE with renewed connotation.NAMMI,the

16、approachable professional pure-electric brand,was unveiled officially,in coupled with Dongfeng Quantum Architecture 3,the exclusive platform for NAMMI,providing a new value experience of approachable pure-electric vehicles and devoting to becoming an approachable brand which promotes the popularity

17、of new energy vehicles and enables people to enjoy a better life that is affordable.On the other hand,the Group strengthened control of key technologies and core resources to ensure high-level technological independence.In building exclusive platforms for energy-conserving and new energy vehicles,th

18、e independent brand passenger vehicle segment has established three major platforms,namely M TECH Luxury Offroad Architecture,Dongfeng Quantum Intelligent Electrification Architecture and DSMA Multi-source Low-carbon Energy Architecture;the commercial vehicle segment is now building heavy-duty and l

19、ight-duty electrification platforms and has unveiled the“Mach Power”brand for energy conservation,hybrid power and pure-electric power,maintaining a leading position in the industry.Furthermore,the Group further developed the reform and improvement plan to better activate the vitality and enthusiasm

20、 of the organization.While setting a comprehensive plan for deepening reform and greater improvement,the Group promoted the Sailing Programme for corporate governance and made transition and upgrading as the core task of building a world-class enterprise;accelerated system reform and strengthened in

21、centive and regulation mechanisms,thus encouraging team leaders and employees to achieve higher attainment.2023 Interim Report4Chairmans Statement(Continued)Currently,the Group is promoting significant adjustment to the management system of independent-brand new-energy passenger vehicle segment and

22、developed the integrated management system for three major series under the“Dongfeng”brand,Aeolus,e and NAMMI,which is an important move following the release of“14th Five-Year Plan”,Dongfeng Advance and Transition Action of technological innovation that aims to expedite the“Three-Year Transition Ac

23、tion Plan”in the trend of accelerated development of new energy vehicles in the automobile industry.The direct operation of Dongfeng independent-brand passenger vehicle segment enables the Groups headquarters to“consolidate resources for concerted actions”and achieve resource integration,responsibil

24、ity consolidation and function amalgamation,creating synergies,improving the agility of satisfying market requirements and customer demands and thus laying a solid foundation for stronger competitiveness and better operation efficiency.In the future,the Group will further promote the“Three-Year Tran

25、sition Action Plan”,develop the new energy segment with strong execution,advance the transformation of joint-invested vehicle business,vigorously support technological innovation and actively cultivate innovation advantages to acquire the capability of maintaining healthy and sustainable development

26、,with the direction guided by national strategies,the focus of improving core competitiveness and core functions and the objectives set by the“14th Five Year Plan”;remain determined to grow bigger,stronger and better,pursue substantive quality improvement and reasonable quantity expansion and boost

27、the construction of Preeminent Dongfeng and world-class enterprise,thereby making greater contribution to building a new development pattern,promoting high-quality development and advancing modernisation with Chinese characteristics.Finally,on behalf of the Board,I would like to express my sincere g

28、ratitude to all shareholders for their continued support and dedication.Zhu YanfengChairmanWuhan,the PRC28 August 2023Dongfeng Motor Group Company Limited5Corporate InformationREGISTERED NAMEDongfeng Motor Group Company LimitedREGISTERED ADDRESSSpecial No.1 Dongfeng Road Wuhan Economic and Technolog

29、y Development Zone Wuhan,Hubei 430056 PRCPRINCIPAL PLACE OF BUSINESS IN THE PRCSpecial No.1 Dongfeng Road Wuhan Economic and Technology Development Zone Wuhan,Hubei 430056,PRCPRINCIPAL PLACE OF BUSINESS IN HONG KONG5/F,Manulife Place,348 Kwun Tong Road,Kowloon,Hong Kong Queens Road East,Hong Kong SA

30、RCOMPANY WEBSITECOMPANY SECRETARIESYin Yaoliang(Resigned on 28 Auguest 2023)Liao Xianzhi(Appointed on 28 Auguest 2023)Yuen Wing Yan,Winnie(FCG,HKFCG(PE)AUDITORSErnst&YoungHONG KONG H SHARE REGISTRARComputershare Hong Kong Investor Services LimitedShops 1712-171617th Floor,Hopewell Centre,183 Queens

31、Road EastWan Chai,Hong Kong SARPLACE OF LISTINGThe Stock Exchange of Hong Kong LimitedSTOCK CODE004892023 Interim Report6Report of the DirectorsI.BUSINESS OVERVIEW(I)Major BusinessesDongfeng Motor Group is principally engaged in the businesses of research and development,manufacturing and sales of c

32、ommercial vehicles,passenger vehicles,engines and other auto parts,automobile equipment manufacturing,import and export of automobile products,logistics services,financing services,insurance agency and used car trading.The principal products include commercial vehicles(heavy trucks,medium trucks,lig

33、ht trucks,mini trucks and buses,special purpose vehicles,semi-trailers as well as auto engines and auto parts related to commercial vehicles)and passenger vehicles(basic passenger vehicles,MPV,SUV and auto engines and auto parts related to passenger vehicles).The commercial vehicle business of Dongf

34、eng Motor Group is mainly operated by Dongfeng Commercial Vehicle Co.,Ltd.,Dongfeng Automobile Co.,Ltd.,Dongfeng Liuzhou Motor Co.,Ltd.and Dongfeng Special Commercial Vehicle Co.,Ltd.Dongfeng Motor Groups passenger vehicle business is currently operated by Dongfeng Passenger Vehicle Company,Dongfeng

35、 Liuzhou Motor Co.,Ltd.and Dongfeng Motor Co.,Ltd.,Dongfeng Peugeot Citron Automobile Co.,Ltd.,and Dongfeng Honda Automobile Co.,Ltd.In recent years,Dongfeng Motor Group has accelerated the development of its new-energy vehicle business of“Five-Modernizations”,which is principally operated by Dongfe

36、ng Motor Co.,Ltd.,Dongfeng Special Commercial Vehicle Co.,Ltd.,Dongfeng Passenger Vehicle Company and Zhixin Technology Co.,Ltd.,VOYAH Automobile Technology Co.,Ltd.,and eGT New Energy Automotive Co.,Ltd.The financing service business of Dongfeng Motor Group is currently operated by the following co

37、mpanies:Dongfeng Motor Finance Co.,Ltd.(a wholly-owned subsidiary of the Company),Dongfeng Nissan Auto Finance Co.,Ltd.,Dongfeng Auto Finance Co.,Ltd.Dongfeng Motor Group Company Limited7Report of the Directors(Continued)(II)Principal Business Operations during the First Half of 2023As at 30 June 20

38、23 the production and sales volume for vehicles of Dongfeng Motor Group were approximately 986,000 units and 945,000 units respectively.According to the statistics published by the China Association of Automobile Manufacturers,Dongfeng Motor Group had a market share of approximately 7.1%in terms of

39、sales volume of commercial and passenger vehicles made by domestic manufacturers in the first half of 2023.The following table sets out the production and sales volumes of commercial and passenger vehicles of Dongfeng Motor Group as well as their respective market shares in terms of sales volume in

40、the first half of 2023:Production VolumeSales VolumeMarket Share(Unit)(Unit)(%)1Commercial Vehicles179,609175,7958.9Trucks173,452169,8649.7Buses6,1575,9312.7Passenger Vehicles806,533769,6896.8Basic passenger cars440,588411,1018.2MPVs38,55940,6338.4SUVs327,386317,9555.6 Total986,142945,4847.1 1 Calcu

41、lated based on the statistics published by the China Association of Automobile Manufacturers(III)Business OutlookIn the first half of this year,with the full restoration of normalized operation of the economy and society,the macro policy has been effective,and the national economy has rebounded and

42、improved,but the foundation for the sustained recovery and development of the domestic economy is still unstable,and the current economic operation of China is faced with new difficult challenges such as the lack of domestic demand,the difficulties of operation of some enterprises,and more risks and

43、 hidden problems in key areas,and the external environment is still complicated and severe.In the second half of the year,with the accumulation of positive factors for development,the economy is expected to continue to recover.As for the auto industry,the industry maintained steady development in th

44、e first half of the year,the domestic market continued to recover,and new energy vehicles,auto exports and Chinese brands continued to develop in a favorable manner.In the second half of the year,as the policy effect continues to be realized,the consumption potential of the market will be further re

45、leased,which will help promote the industry to achieve stable growth throughout the year.In the medium to long term,residents demand for auto consumption will remain strong,which,coupled with industry transformation and consumption upgrading as well as the industry dividend brought about by the grow

46、th in exports,will provide sufficient protection for the automobile market to maintain stable growth.2023 Interim Report8Report of the Directors(Continued)II.CORPORATE GOVERNANCE1.Overview of Corporate GovernanceThe Company has been in compliance with the relevant requirements provided by the Compan

47、y Law of the Peoples Republic of China,the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Corporate Governance Code of the Stock Exchange of Hong Kong.The Company supervises and regulates its daily operation in strict compliance with the Articles of Asso

48、ciation of Dongfeng Motor Group Company Limited and various governing systems of the Company,and regularly reviews the operation and management of the Company.In addition,the Company recognises the importance of transparency in governance and accountability to the shareholders of the Company,and com

49、mits to continuously enhancing the standard and effectiveness of corporate governance to ensure that the Company is developing properly on the right path,and the interests of shareholders in the Company will continue to grow and be well protected.2.Corporate Governance CodeDuring the period,the Comp

50、any has complied with the code provisions as set out the Corporate Governance Code(the“Code”)of Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.3.Securities Transaction of the DirectorsThe Company has adopted a code of conduct regarding the dir

51、ectors securities transactions on terms no less exacting than the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers(the“Model Code”).After specific enquiries of all directors by the Company,all directors have confirmed that they had fully complie

52、d with the Model Code throughout the period.4.Independent Non-executive DirectorsDuring the period from 1 January 2023 to 17 May 2023,the Board of Directors of the Company consists of seven Directors,including three Independent Non-executive Directors.Mr.Leung Wai Lap,Philip,an Independent Non-execu

53、tive Director,has the qualification and experience of accounting and financial management;With effect from 17 May 2023,the Board of Directors of the Company consists of six Directors as Mr.Huang Wei ceased to hold the position of non-executive Director of the Company.The composition of the Board of

54、Directors of the Company is in compliance with the requirement of the Listing Rule 3.10(1)that“every board of directors of a listed issuer must include at least three independent nonexecutive directors”,the Listing Rule 3.10A that“an issuer must appoint independent non-executive directors representi

55、ng at least one-third of the board”and the Listing Rule 3.10(2)that“at least one of the independent non-executive directors must have appropriate professional qualifications or accounting or related financial management expertise”.Dongfeng Motor Group Company Limited9Report of the Directors(Continue

56、d)5.Board MeetingThree Board meetings were held by the Company in the first half of 2023 and the major matters covered were as follows:To consider the medium-term business plan for 2022(22MTP)of the Company;To consider the annual investment plan for 2023 of the Company;To consider the investment man

57、agement system and the proposed plan for the preparation of the system for high-risk financial investment business of the Company;To consider the financial report for 2022 and the auditors report for 2022 of the Company and submit them to the Annual General Meeting for voting;To consider the content

58、s of the 2022 Annual Report and preliminary results announcement of the Company,and authorize the Companys representative or the Company Secretary to sign the relevant disclosure documents and submit them to the Annual General Meeting for voting;To consider the profit distribution proposal of the Co

59、mpany for 2022 and submit it to the Annual General Meeting for voting;To consider the annual remuneration proposal of the directors of the Company for the year ended 31 December 2023 and submit it to the Annual General Meeting for voting;To assess the independence of Independent Non-executive Direct

60、ors currently engaged by the Company;To request the shareholders meeting of the Company to give the Board general authority to issue,allot and dispose new domestic shares and new H shares not exceeding 20%of the issued domestic shares and 20%of the issued H shares of the Company,respectively,and aut

61、horise the Board to increase the registered capital and make corresponding amendments to the Articles of Association of the Company as the Board considers appropriate to reflect the new share structure after allotment or issuance of shares;2023 Interim Report10Report of the Directors(Continued)To ap

62、prove the time,place and related matters for convening the 2022 Annual General Meeting of the Company;To consider the amendments to the Articles of Association,Rules of Procedure of General Meeting,Rules of Procedure of the Board,Rules of Procedure of the Audit and Risk Management Committee,and Rule

63、s of Procedure of the Nomination Committee of the Company;To consider the 2022 Environmental,Social and Governance Report;To consider the proposal regarding qualification approval and annual plan for monetary financial derivatives business;To consider the proposal for the Company to increase capital

64、 to Dongfeng Motor Finance Co.,Ltd.;To consider the proposal regarding adjustment to the financing credit line for 2023 of the Company;To consider the proposal to repurchase the tradable shares of the Company;To consider the proposal regarding adjustment to the senior management of the Company;To co

65、nsider the proposal to change the personnel shared service center into a branch;Dongfeng Motor Group Company Limited11Report of the Directors(Continued)The Board meetings allow effective discussion and prompt and prudent decision.As at 30 June 2023,the attendance of directors at the Board meetings i

66、s as follows:Members of the Board of DirectorsAttendance/Number of MeetingsThe Board of DirectorsAttendance RateNoteExecutive DirectorsZhu Yanfeng1/333.33%Yang Qing3/3100%You Zheng3/3100%Non-executive DirectorsHuang Wei(resigned with effect from 17 May 2023)2/2100%Independent Non-executive Directors

67、Zong Qingsheng3/3100%Leung Wai Lap,Philip3/3100%Hu Yiguang3/3100%The management of the Company is responsible for providing the Board with relevant data and information necessary for the consideration of various resolutions and arranging officers to report on the progress of various tasks,especially

68、 updates on major projects of the Company,at the Board meetings.6.Committees under the Board1)Audit and Risk Management CommitteeThe Company has established the Audit and Risk Management Committee in accordance with Rules 3.21 and 3.22 of the Listing Rules.The Audit and Risk Management Committee is

69、mainly responsible for reviewing and monitoring the financial reporting process of the Company,evaluating and determining the nature and level of risks encountered by the Company,reviewing the financial supervision,risk management and internal control system of the Company,and making suggestions and

70、 advice to the Board.The Audit and Risk Management Committee is composed of three members,all of whom are Independent Non-executive Directors of the Company.The member of the Audit and Risk Management Committee is Mr.Leung Wai Lap,Philip,an Independent Non-executive Director who has possessed the pr

71、ofessional qualification as required under Rule 3.10(2)of the Listing Rules.The other two members are Mr.Zong Qingsheng and Mr.Hu Yiguang,the Independent Non-executive Directors.2023 Interim Report12Report of the Directors(Continued)2)Remuneration CommitteeThe Company has established the Remuneratio

72、n Committee in accordance with Rules 3.25 and 3.26 of the Listing Rules.The Remuneration Committee is mainly responsible for formulating the remuneration proposals of directors,supervisors and senior management and medium and long-term incentive schemes and submitting the same to the Board for appro

73、val.The committee is composed of three members with a majority of Independent Non-executive Directors.The chairman of the committee is Mr.Zong Qingsheng,an Independent Non-executive Director,and the other two members are Mr.Hu Yiguang,an Independent Non-executive Director,and Mr.Yang Qing,an Executi

74、ve Director.3)Nomination CommitteeThe Company has established the Nomination Committee in accordance with Rules B.3.1 to B.3.3 of Corporate Governance Code.The Nomination Committee is mainly responsible for nominating candidates of Directors,studying and reviewing the criteria and procedures for the

75、 nomination and selection of Director candidates,and making recommendations.The committee is composed of three members,a majority of whom are Independent Non-executive Directors.Mr.Zong Qingsheng,an Independent Non-executive Director,is the chairman of the Nomination Committee.The other two members

76、of the committee are Mr.Zhu Yanfeng,an Executive Director,and Mr.Leung Wai Lap,Philip,an Independent Non-executive Director.7.Internal ControlIn the first half of 2023,the Board has fully evaluated the effectiveness of the internal control system of the Company through the Audit and Risk Management

77、Committee and the audit department of the Company with focuses on the control environment,risk assessment,control activity,information and communication as well as supervision.According to the evaluation on the internal control system,the Board believes that,during the first half of the year,the Com

78、pany had a complete and fully effective internal control system covering various aspects including corporate governance.Dongfeng Motor Group Company Limited13Report of the Directors(Continued)III.MAJOR MATTERSINTERIM DIVIDENDThe Board of Directors do not recommend an interim dividend for the six mon

79、ths ended 30 June,2023.MAJOR ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES,JOINT VENTURES AND ASSOCIATESFor the six months ended 30 June 2023,there were no material acquisitions and disposals of subsidiaries,joint ventures and associated enterprises by Dongfeng Motor Group.MATERIAL LEGAL PROCEEDINGSFor

80、 the six months ended 30 June 2023,Dongfeng Motor Group was not involved in any material litigation or arbitration and no material litigation or claim was pending or threatened or made against Dongfeng Motor Group as far as Dongfeng Motor Group was aware.Share CapitalAs at 30 June 2023,the total sha

81、re capital of the Company was RMB8,531,270,000,divided into 8,531,270,000 ordinary shares with a par value of RMB1 each,of which 5,760,388,000 shares were Domestic Shares,representing approximately 67.52%of the total number of shares in issue,and 2,770,882,000 shares were H shares,representing appro

82、ximately 32.48%of the total number of shares in issue.2023 Interim Report14Report of the Directors(Continued)Interests of Substantial ShareholdersAs at 30 June 2023,the interest and short positions of the person who hold 5%or more of the class shares in the issued capital of the Company(other than d

83、irectors and supervisors of the Company),as recorded in the register to be kept by the Company pursuant to Section 336 of the Securities and Futures Ordinance are set out below:NameClass of SharesNumber of shares heldPercentage in the class of issued share capitalPercentage in the total share capita

84、l(%)(%)Dongfeng Motor GroupDomestic Share5,760,388,000(L)100.00(L)67.52H Share173,170,000(L)6.24(L)2.03Reynolds Margaret(Meg)H Share220,278,654(L)7.95(L)2.58Ward BryanH Share220,278,654(L)7.95(L)2.58Westwood Global Investments,LLCH Share220,278,654(L)7.95(L)2.58Citigroup Inc.H Share195,335,365(L)7.0

85、4(L)2.296,866,000(S)0.25(S)0.00186,013,146(P)6.71(P)2.18Notes：L Long positionS Short PositionP Lending PoolDongfeng Motor Group Company Limited15Report of the Directors(Continued)Directors and Supervisors Interests in the Share Capital of the CompanyNamePositionClass of SharesNature of interestNumbe

86、r of shares heldPercentage in the class of issued share capitalPercentage in the total share capital(%)(%)He WeiChairman of the Supervisory CommitteeH ShareBeneficial interest100,000(L)0(L)0.00Jin JunEmployee SupervisorH SharesBeneficial interest60,000(L)0(L)0.00Purchase,Sale or Redemption of Listed

87、 Securities of the CompanyWith reference to the Companys circular dated 29 May 2023,the Directors consider that the rationale for the repurchase of the H Shares is based on their confidence in the future development of the Company and the preservation of the value of the Companys investment and the

88、Companys reputation in the capital market,which is in line with the Companys future development strategy.The Directors consider that the flexibility provided by the H-Share repurchase authorization is beneficial to the Company and its shareholders and is in the best interests of the Company and its

89、shareholders.The repurchase authorization was approved at the annual General Meeting held on 20 June 2023.During the six months of 2023,the Company repurchased a total of 61,900,000 H shares on the Stock Exchange of Hong Kong Limited.As at 30 June 2023,the total number of H shares in issue was 2,770

90、,882,000.Details of the share purchase are as follows:MonthNumber of the shares repurchasedPurchase price per share(HKD)Total cost(before expenses)(HKD)HighestLowestJanuary 20233,800,0004.554.4317,068,780May 202319,250,0003.403.3164,978,400June 202338,850,0004.113.41147,230,580Save as disclosed abov

91、e,neither the Company nor any of its subsidiaries purchased,sold or redeemed any of the Companys listed securities during the period ended 30 June 2023.2023 Interim Report16Management Discussion and AnalysisI.OPERATING ENVIRONMENTIn the first half of 2023,Chinas economy has been recovering as a whol

92、e,showcasing an upturn and improvement trend in the overall economy operation,with GDP growth increasing by 5.5%year on year and economic aggregate reaching a new level,ranking the second in the world.In the first half of 2023,the domestic automobile market,after being affected by the shift in promo

93、tional policies and market price fluctuations in the first quarter,gradually recovered in terms of market demand under the combined impetus of central and local pro-consumption policies,the release of the announcement on the implementation of the national emission standards VI for light vehicles,var

94、ious regional automobile marketing campaigns,and the launch of a large number of new vehicle models developed by enterprises.Production and sales in the first half of the year were 13,248,300 units and 13,239,400 units,respectively,representing a year-on-year growth of 9.3%and 9.8%,with production a

95、nd sales volumes remaining the highest in the world.The passenger vehicles market maintained its growth,with mid-term sales of 11,268,400 units throughout the first half of the year,a year-on-year increase of 8.8%.Among which,the sales volume of SUV increased by 15.7%year on year,the sales volume of

96、 basic vehicles increased by 1.5%year on year,and the sales volume of MPV decreased by 26.0%year on year.The commercial vehicle market recovered gradually but less than expectations,and the commercial vehicles sales throughout the medium term were 1,971,000 units,representing a year-on-year increase

97、 of 15.8%.In terms of the production and sales of different models,the sales of buses represented a year-on-year increase of 24.3%,and the sales of trucks represented a year-on-year increase of 14.8%.The new energy vehicle market sustained its rapid growth,with sales of 3,747,000 units of new energy

98、 vehicles throughout the first half of the year,representing a year-on-year increase of 44.1%,among which,the sales of new energy passenger vehicles were 3,577,000 units,with a year-on-year increase of 44.0%,accounting for 31.7%of total passenger vehicle sales volume.A total of 159,000 units of new

99、energy commercial vehicles were sold in first half of the year,representing a year-on-year increase of 54.5%,accounting for 8.1%of the total commercial vehicle sales volume.Dongfeng Motor Group Company Limited17Management Discussion and Analysis(Continued)II.OPERATION ANALYSISIn the first half of 20

100、23,Chinas automotive market remained in a phase of recovery,facing significant pressures in operation,with profitability at a low level.There was a moderate rebound in overall demand but less than expectations,with discernible divergences in segmented markets.In particular,overseas export market and

101、 new energy vehicle market experienced rapid growth,independent brands continued to grow steadily,sales of non-luxury brands of joint ventures continued to decline,and the commercial vehicle market recovered gradually but less than expectations.In the face of the profoundly changing situation,the Gr

102、oup anchored the objectives and tasks of the“Three-Year Transformation and Upgrading Action”,persistently promoted the special work of strategy landing,and accelerated the advancement of the new energy strategy,leading to significant challenges in overall business performance.The Group achieved sale

103、s volume of approximately 945,500 units,sales revenue of approximately RMB45,677 million and profit attributable to shareholders of approximately RMB1,270 million for the period.Affected by the combination of numerous adverse factors,the sales volume of the passenger vehicle of the Company was appro

104、ximately 769,700 units,representing a year-on-year decrease of approximately 23.4%.In particular,the sales volume of the own-brand passenger vehicle business of the Group was approximately 156,800 units,representing a year-on-year decrease of 30.9%;affected by the ongoing decline in market share of

105、the non-luxury passenger vehicle of domestic joint ventures,the sales volume of passenger vehicle business of joint ventures was approximately 612,900 units,representing a year-on-year decrease of approximately 26.4%.The commercial vehicle business was influenced by the gradual recovery of the comme

106、rcial vehicle market,but the actual performance fell significantly short of expectations;the sales volume of commercial vehicles of the Group was approximately 175,800 units,representing a year-on-year increase of approximately 0.7%.The Groups commercial vehicle business encompasses a comprehensive

107、range of heavy-duty,medium-duty,light-duty,passenger,and special-purpose vehicles,and has the core independent research and development and manufacturing capabilities of the entire product chain while the brand of“Longqing”powertrain in commercial vehicles leads the industry in terms of technical pe

108、rformance.The overall operational status of the Groups new energy business remained healthy and stable,with sales volume of new energy vehicles of approximately 120,000 units in the current period,with the proportion of new energy vehicles in the Groups sales volume increasing by 2.2 percentage poin

109、ts.In particular,the sales volume of new energy passenger vehicles was approximately 108,000 units,representing a year-on-year decrease of approximately 7.8%;and the sales volume of new energy commercial vehicles was approximately 12,000 units,representing a year-on-year increase of approximately 1.

110、0%.The Groups overseas business maintained a strong growth momentum,with the total export sales volume of 81,200 units in the current period,representing a year-on-year increase of 28.1%,achieving the highest historical level.2023 Interim Report18Management Discussion and Analysis(Continued)III.FINA

111、NCIAL ANALYSIS1.RevenueThe revenue of the Group for the interim period of 2023 was approximately RMB45,677 million,representing an increase of approximately RMB1,281 million,or approximately 2.9%,as compared with approximately RMB44,396 million for the corresponding period of last year.The change in

112、 revenue was mainly from VOYAH Automobile Technology Co.,Ltd.,Dongfeng Commercial Vehicle Co.,Ltd.,Dongfeng Passenger Vehicle Company,Dongfeng Liuzhou Motor Co.,Ltd.,and Dongfeng Peugeot Citron Automobile Sales Co.,Ltd.The first half of 2023The first half of 2022Sales Revenue RMB millionSales Revenu

113、e RMB millionPassenger vehicles16,11019,919Commercial vehicles25,52620,808Auto financing service3,1143,222Corporate and others1,119637Elimination(192)(190)Total45,67744,396 1.1 Passenger Vehicle BusinessThe sales revenue of passenger vehicles of the Group for the interim period of 2023 decreased by

114、approximately RMB3,809 million,or approximately 19.1%,to approximately RMB16,110 million from approximately RMB19,919 million for the corresponding period of last year.The decrease in revenue was mainly from the passenger vehicles business of Dongfeng Passenger Vehicle Company and Dongfeng Liuzhou M

115、otor Co.,Ltd.1.2 Commercial Vehicle BusinessThe Group was influenced by the gradual recovery of the commercial vehicle market,but the actual performance fell significantly short of expectations.The sales revenue of commercial vehicle business for the interim period of 2023 was approximately RMB25,52

116、6 million,representing an increase of approximately RMB4,718 million or an increase of approximately 22.7%from approximately RMB20,808 million for the corresponding period of last year.The increase in revenue was mainly from the commercial vehicles business of Dongfeng Commercial Vehicle Co.,Ltd.and

117、 Dongfeng Liuzhou Motor Co.,Ltd.and the impact of changes in the consolidation scope of Dongfeng Automobile Co.,Ltd.Dongfeng Motor Group Company Limited19Management Discussion and Analysis(Continued)1.3 Auto Financing Service BusinessAffected by the decline in the sales volume,the revenue of the Gro

118、ups financing service business declined slightly over the corresponding period of last year.The revenue of auto financing service of the Group for the interim period of 2023 decreased by approximately RMB108 million,or approximately 3.4%,to approximately RMB3,114 million from approximately RMB3,222

119、million of the corresponding period of last year.1.4 Information on the Financing Service BusinessThe financing service business of the Group is primarily conducted through a subsidiary of the Company,Dongfeng Motor Finance Co.,Ltd.(“Dongfeng Finance”),holding a financial permit granted by the regul

120、atory authorities,for the purpose of supporting the sale of the commercial and passenger vehicles of the Group.The Groups financing service business targeted both external customers and member units of the Group.Dongfeng Finance provides business under four main categories:(1)absorbing deposits from

121、 member units;(2)Group member units financing,mainly comprising handling of member unit loans,bill discounting,fund settlement and entrusted loans;(3)distributor financing,mainly comprising handling buyers credit for member unit products;and(4)end customers financing,mainly comprising loans and leas

122、e financing to end users.As at 31 December 2022,the balance of Dongfeng Finances credit assets was approximately RMB77,900 million,approximately 84.87%of which was financed by the end customers(average interest rate for end customers:8.93%),approximately 13.38%of which was due from member companies

123、of the Group and their respective suppliers(loan interest rate range:2.1%4.35%;average rate:3.67%)and approximately 1.75%of which was due from distributors(loan interest rate range:5.4%6.78%;average rate:5.65%).In terms of the number of customers,the end customers amounted to 1,144,331,with 267 dist

124、ributors,and a total of 97 member companies of the Group and their respective suppliers.In terms of customer types,approximately 82.15%and 17.85%of the financing balance of Dongfeng Finance was due from individual borrowers and corporate borrowers,respectively.The loans provided to the five largest

125、borrowers,all being member companies of the Group,accounted for 6.45%of the loans.To reduce the risk for the Group,in general,Dongfeng Finance required vehicles as collaterals for its financing services to end customers and may require a guarantor depending on the end customers qualifications.For fi

126、nancing services to vehicle distributors,Dongfeng Finance required vehicle pledges and custody of the vehicles,vehicle qualification certificates and car keys.For the related parties of the Group,the Company determined the guarantee conditions according to different business types and customer quali

127、fications.The major terms of loans granted include loans receivable,interest rate,maturity date and guarantee conditions.2023 Interim Report20Management Discussion and Analysis(Continued)The Group strived to adhere to a set of comprehensive standards,guidelines and procedures in respect of credit ri

128、sk management.A risk and compliance management committee was set up to review the credit policies and operating guidelines of each business line and formulate the benchmark conditions and approval standards for the Groups financing services.The Group adopted an intelligent approval model for individ

129、ual customers,and make loans offering decisions based on credit information and data from the Peoples Bank of China and independent third parties.The Group comprehensively assessed the recoverability of a corporate borrower by establishing a scorecard model based on factors including on-site due dil

130、igence,the borrowers financial capability,credit performance record and guarantee ability.The Group constantly carried out quality inspection to ensure the effectiveness of the implementation of risk assessment procedures,regularly monitored risk and optimized the effect of the loan review model.The

131、 Group adopted information technology to continuously monitor the recoverability of loans.The Group monitored the industrial and commercial,administrative,judicial and credit information changes of corporate borrowers through the post-loan management platform,and monitored the operating efficiency o

132、f its end customers financing business through its vehicle operation monitoring platform.For loan collection,the Group implemented classified collection for overdue loans,and had formulated detailed operating rules for overdue loan collection,including allocation of specialized teams and resources t

133、o collect overdue loans through text messages,telephone calls,letters,outsourced collection,disposal of mortgaged vehicles and judicial proceedings.As stated in the annual report of the Group,the Group recognised provision for impairment of loans and receivables from financing service as of 31 Decem

134、ber 2022 was approximately RMB3,430 million,as compared to that of RMB2,738million as at 31 December 2022.To the best information,knowledge and belief of the Directors,the increase was mainly because(1)Considering the impact of the deferred debt service payments to truck drivers on the impairment al

135、lowance,a more prudent standard was adopted to allocate part of the balance to Stage 2,with a corresponding increase in expected credit losses;(2)As of the end of 2022,the relevant financial institutions have been relatively prudent in their forecasts of the future macroeconomic indicators,with a co

136、rresponding increase in expected credit losses;and(3)the Group adopts the principle of relative prudence in the setting of expected credit modeling in order to enhance its risk-resistance ability.2.Cost of Sales and Gross ProfitThe total cost of sales of the Group for the interim period of 2023 was

137、approximately RMB40,691 million,representing an increase of approximately RMB1,507 million,or approximately 3.8%,as compared with approximately RMB39,184 million of the corresponding period of last year.The total gross profit was approximately RMB4,986 million,representing a decrease of approximatel

138、y RMB226 million,or approximately 4.3%,as compared with approximately RMB5,212 million of the corresponding period of last year.The comprehensive gross profit margin for current period was approximately 10.9%.Dongfeng Motor Group Company Limited21Management Discussion and Analysis(Continued)The decr

139、ease in gross profit was mainly due to a number of factors such as the overall weak demand in the commercial vehicle industry,which is still recovering,as well as the price war.The main changes were that the gross profit of the Groups commercial vehicle business was lower than the corresponding peri

140、od,while the Groups passenger vehicle gross profit was higher than the corresponding period.3.Other IncomeThe total other income of the Group for the interim period of 2023 amounted to approximately RMB2,448 million,representing a decrease of approximately RMB894 million compared with approximately

141、RMB3,342 million of the corresponding period of last year.The changes in other income were mainly due to:(1)the effect of the disposal of Seres shares in the same period last year,none in the current period;(2)an increase of RMB290 million in dividends paid by STLA over the corresponding period;(3)t

142、he effect of the increase in the share price of China Railway Special Cargo held by the Company.4.Selling and Distribution ExpensesThe selling and distribution expenses of the Group for the interim period of 2023 increased by approximately RMB562 million to approximately RMB3,589 million from approx

143、imately RMB3,027 million of the corresponding period of last year.The increase in selling and distribution expenses was mainly due to:(1)increased advertising expenses for the launch of new vehicle models such as VOYAH Zhuiguang,Peugeot 408X,5008,and others;(2)rise in market development expenses for

144、 VOYAH,M HERO,and Dongfeng Commercial Vehicle Co.,Ltd.5.Administrative ExpensesThe administrative expenses of the Group for the interim period of 2023 decreased by approximately RMB213 million to approximately RMB2,022 million from approximately RMB2,235 million of the corresponding period of last y

145、ear.The decrease in administrative expenses was mainly due to the decrease in the sales volume of the Group in the current period and the corresponding decrease in staff salaries.6.Impairment Losses on Financial AssetsThe impairment losses on financial assets of the Group for the interim period of 2

146、023 decreased by approximately RMB629 million to approximately RMB-29 million from approximately RMB600 million in the corresponding period last year.The changes in impairment losses on financial assets were mainly due to loans and receivables from financing service of the Group,related impairment p

147、rovision decreased accordingly.2023 Interim Report22Management Discussion and Analysis(Continued)7.Other ExpensesThe other expenses of the Group for the interim period of 2023 amounted to approximately RMB2,709 million,representing a decrease of approximately RMB185 million as compared with approxim

148、ately RMB2,894 million of the corresponding period of last year.The change in net of other expenses in the current period was mainly due to the capitalisation of research and development expenses for certain projects as the margin of passenger vehicle business of the Group improved in the current pe

149、riod as compared with the corresponding period,with margin from major models turning from negative to positive,while the Groups S2 platform has qualified for capitalization.The Group continues to accelerate its strategic transformation towards new energy,increasing investments in the construction of

150、 high-end new energy brands,platforms,products,key components and core technological resources.In the current period,the investment in research and development amounted to RMB3,462 million,representing an increase of RMB388 million,or 12.62%,as compared with RMB3,074 million of the corresponding per

151、iod,of which:the investment in research and development of new energy amounted to RMB1,560 million,representing an increase of RMB515 million,or 49.3%,as compared with RMB1,045 million of the corresponding period.8.Finance ExpensesThe finance expenses of the Group for the interim period of 2023 amou

152、nted to approximately RMB629 million,representing an increase of approximately RMB324 million as compared with approximately RMB305 million of the corresponding period of last year.The increase in finance expenses in current period was mainly due to the increase in foreign exchange losses of Euro bo

153、nds as compared with the corresponding period as a result of fluctuations of RMB exchange rate.9.Share of Profits and Losses of Joint VenturesShare of profits and losses of joint ventures of the Group for the interim period of 2023 decreased by approximately RMB3,822 million to approximately RMB1,40

154、3 million,from approximately RMB5,225 million of the corresponding period of last year.The main reasons for the change were that:(1)Dongfeng Motor Co.,Ltd.decreased by approximately RMB1,760 million over the corresponding period;(2)Dongfeng Honda Automobile Co.,Ltd.decreased by approximately RMB1,51

155、4 million over the corresponding period;(3)Dongfeng Honda Engine Co.,Ltd.decreased by approximately RMB365 million over the corresponding period.Dongfeng Motor Group Company Limited23Management Discussion and Analysis(Continued)10.Share of Profits and Losses of AssociatesShare of profits and losses

156、of associates of the Group for the interim period of 2023 amounted to approximately RMB331 million,representing a decrease of approximately RMB42 million as compared with that of approximately RMB373 million of the corresponding period of last year,which mainly due to:the decrease in the investment

157、income of Dongfeng Nissan Auto Finance Co.,Ltd.over the corresponding period.11.Income Tax ExpenseThe income tax expense of the Group for the interim period of 2023 increased by approximately RMB69 million to approximately RMB42 million from approximately RMB-27 million in the corresponding period o

158、f last year.12.Profit Attributable to Equity Holders of the Company for the YearThe profit attributable to shareholders of the Group for the interim period of 2023 was approximately RMB1,270 million,representing a decrease of approximately RMB4,230 million,or approximately 76.9%as compared with that

159、 of approximately RMB5,500 million of the corresponding period of last year.The net profit margin(a percentage of profit attributable to shareholders to total revenue)was approximately 2.8%,representing a decrease of approximately 9.6 percentage point as compared with approximately 12.4%of the corre

160、sponding period of last year.The return on net assets(a percentage of profit attributable to shareholders to average net assets)was approximately 1.6%.13.Total AssetsTotal assets of the Group for the interim period of 2023 amounted to approximately RMB316,711 million,representing a decrease of appro

161、ximately RMB13,325 million,or 4.0%,as compared with RMB330,036 million as at the end of the last year.This was mainly due to:(1)an increase in trade receivables of RMB2,378 million;(2)an increase in property,plant and equipment,right-of-use assets and intangible assets of RMB2,013 million;(3)an incr

162、ease in deferred income tax assets of RMB345 million;(4)a decrease in prepayments,deposits and other receivables of RMB11,686 million(Changes in the balance of factoring business under finance company loans and trade financing decreased cash flow by RMB5,779 million,changes in the balance of loans g

163、ranted with maturity of one year decreased cash flow by RMB4,363 million,changes in the balance of finance lease receivables with maturity of one year decreased cash flow by RMB2,711 million;prepayments increased by RMB450 million,other receivables increased by RMB450 million);(5)a decrease in amoun

164、ts due from joint ventures of RMB3,947 million;(6)a decrease in bills receivable of RMB3,946 million;(7)a decrease in cash and cash equivalents,pledged bank balances and time deposits and financial assets at fair value through profit or loss of RMB3,873 million.2023 Interim Report24Management Discus

165、sion and Analysis(Continued)14.Total LiabilitiesTotal liabilities of the Group for the interim period of 2023 amounted to approximately RMB151,475 million,representing a decrease of approximately RMB13,025 million,or 7.92%as compared with approximately RMB164,500 million as at the end of the last ye

166、ar.The decrease was mainly due to:(1)a decrease in interest-bearing borrowings of RMB1,582 million;(2)an increase in trade payables and bills payable of RMB6,223 million;(3)an increase in contract liabilities of RMB1,111 million;(4)a decrease in amounts due to joint ventures of RMB19,352 million.15.

167、Total EquityTotal equity as at the end of June 2023 amounted to RMB165,236 million,representing a decrease of RMB300 million or 0.18%as compared with RMB165,536 million as at the end of last year,of which,equity attributable to equity holders of the Company amounted to RMB156,604 million,representin

168、g an increase of RMB752 million as compared with RMB155,852 million as at the end of last year;non-controlling interests amounted to RMB8,632 million,representing a decrease of RMB1,052 million as compared with RMB9,684 million as at the end of last year.16.Liquidity and Sources of CapitalNet outflo

169、w of cash and cash equivalents for the interim period of 2023 was RMB3,722 million,representing a decrease of RMB16,892 million over the interim period of 2022.This includes a net cash outflow from operating activities of RMB7,954 million,a net cash inflow from investing activities of RMB4,107 milli

170、on and a net cash inflow from financing activities of RMB125 million.Net cash outflow from operating activities amounted to RMB7,954 million.The amount mainly consisted of:(1)an increase in cash flow of RMB11,734 million due to a decrease in the scale of loans granted by financial businesses;(2)an i

171、ncrease in trade payables,bills payable and other payables and accruals of RMB3,517 million;(3)an increase in trade receivables and prepayments and deposits of RMB2,144 million(an increase in trade receivables of RMB2,562 million,a decrease in bills receivables and receivables financing of RMB854 mi

172、llion,an increase in prepayments of RMB450 million);(4)profit before income tax amounted to RMB1,018 million,net of depreciation,impairment and other non-cash items;(5)the decrease in amounts due to joint ventures decrease in cash flow by RMB19,145 million;(6)decrease in cash flow of income tax paym

173、ent by RMB1,512 million;(7)a decrease in cash flow of RMB1,338 million due to decrease in deposit taking of Dongfeng Motor Finance Co.,Ltd.;(8)a decrease in interest payments decreased cash flow by RMB295 million.Net cash inflow from investing activities amounted to RMB4,107 million.The amount mainl

174、y consisted of:(1)increase in cash flow of RMB7,312 million due to the receipt of dividend(dividends of RMB1,013 million from the equity investment in the listed company Stellantis,dividends of RMB1,667 million from Dongfeng Motor Co.,Ltd.,and dividends of RMB4,351 million from Dongfeng Honda Automo

175、bile Co.,Ltd.);(2)cash out-flow of RMB4,400 million for the purchase of fixed assets and intangible assets.Dongfeng Motor Group Company Limited25Management Discussion and Analysis(Continued)Net cash inflow from financing activities amounted to RMB125 million.This amount mainly reflected:(1)increase

176、of bank borrowings,resulting in a cash inflow of RMB12,140 million;(2)repayment of bank borrowings and redemption of bonds,resulting in a cash outflow of RMB11,722 million.As a result of the above,the Groups cash and cash equivalents(excluding non-pledged time deposits with original maturity of thre

177、e months or more when acquired)in the cash flow statement amounted to RMB61,660 million as at 30 June 2023,representing a decrease of RMB3,584 million as compared with RMB65,244 million as at the end of the previous period.Cash and cash equivalents(including non-pledged time deposits with original m

178、aturity of three months or more when acquired)in the balance sheet amounted to RMB62,708 million,representing a decrease of RMB5,338 million as compared with RMB68,046 million as at the end of the previous period.17.Major Financial Figures Based on Proportionate ConsolidationBased on proportionate c

179、onsolidation,the revenue of the Group for the six months ended 30 June 2023 was approximately RMB93,718 million,representing a decrease of approximately RMB14,012 million,or approximately 13.01%,as compared with approximately RMB107,730 million of the corresponding period of last year.Profit before

180、income tax was approximately RMB753 million,representing a decrease of approximately RMB6,119 million,or approximately 89.05%,as compared with approximately RMB6,872 million of the corresponding period of last year.Total assets were approximately RMB364,262 million,representing a decrease of RMB5,86

181、1 million,or approximately 1.58%,as compared with approximately RMB370,123 million as at the end of last year.2023 Interim Report26Directors,Supervisors and Senior ManagementDuring the disclosure period,of 2023 interim report,the directors,supervisors and senior management of the Company include:Zhu

182、 Yanfeng(竺延風)Executive Director and Chairman of the Board of DirectorsYang Qing(楊青)Executive Director,PresidentYou Zheng(尤崢)Executive Director,Vice PresidentHuang Wei(黃偉)Non-executive Director(resigned with effect from 17 May 2023)Zong Qingsheng(宗慶生)Independent Non-executive DirectorLeung Wai Lap,Ph

183、ilip(梁偉立)Independent Non-executive DirectorHu Yiguang(胡裔光)Independent Non-executive DirectorSENIOR MANAGEMENTQiao Yang(喬陽)Vice PresidentFeng Changjun(馮長軍)Vice PresidentYin Yaoliang(殷耀亮)Joint Company Secretary(Resigned on 28 August 2023）Liao XianzhiJoint Company Secretary(Appointed on 28 August 2023)

184、Li Jun(李軍)Secretary to the Board of DirectorsSUPERVISORSHe Wei(何偉)Chairman of the Supervisory CommitteeBao Hongxiang(鮑洪湘)Independent SupervisorJin Jun(靳軍)Employee SupervisorDongfeng Motor Group Company Limited27Directors,Supervisors and Senior Management(Continued)HEADS OF DEPARTMENTSThe head of Off

185、ice of the Company(Party committee of the Board)is Mr.Mao JingThe head of Strategic Planning and Technology Development Department of the Company is Mr.Zhou FengThe head of the Operation Management Department of the Company is Mr.Zhang JunThe head of the Human Resource Department of the Company is M

186、r.Zheng HongyiThe head of the Financial Accounting Controlling Department of the Company are Mr.Liao XianzhiThe head of the International Business Department of the Company is Mr.Ma LeiThe head of the Compliance Audit Department of the Company is Mr.Zhou ChanglingThe head of the Corporate Culture De

187、partment of the Company is Mr.Jin JunThe deputy head of the Discipline inspection and Supervision Department(Discipline Inspection Commission)of the Company is Mr.Chen TaoThe head of the Staff Relation Department of the Company is Mr.Sun SanbaoThe head of the Deepening Reform Promotion Office of the

188、 Company is Mr.GuotaoThe secretary of the Youth League Committee of the Company is Mr.Ge ZheIndependent review report2023 Interim Report28To the Board of Directors of Dongfeng Motor Group Company Limited(Incorporated in the Peoples Republic of China with limited liability)INTRODUCTIONWe have reviewe

189、d the interim financial information set out on pages 29 to 59,which comprises the condensed consolidated statement of financial position of Dongfeng Motor Group Company Limited(the“Company”)and its subsidiaries(the“Group”)as at 30 June 2023 and the related condensed consolidated statements of profit

190、 or loss,comprehensive income,changes in equity and cash flows for the six-month period then ended,and explanatory notes.The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance w

191、ith the relevant provisions thereof and International Accounting Standard 34 Interim Financial Reporting(“IAS 34”)issued by the International Accounting Standards Board(“IASB”).The directors of the Company are responsible for the preparation and presentation of this interim financial information in

192、accordance with IAS 34.Our responsibility is to express a conclusion on this interim financial information based on our review.Our report is made solely to you,as a body,in accordance with our agreed terms of engagement,and for no other purpose.We do not assume responsibility towards or accept liabi

193、lity to any other person for the contents of this report.SCOPE OF REVIEWWe conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Hong Kong Institute of Certified P

194、ublic Accountants.A review of interim financial information consists of making inquiries,primarily of persons responsible for financial and accounting matters,and applying analytical and other review procedures.A review is substantially less in scope than an audit conducted in accordance with Hong K

195、ong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.Accordingly,we do not express an audit opinion.CONCLUSIONBased on our review,nothing has come to our attention that causes us t

196、o believe that the interim financial information is not prepared,in all material respects,in accordance with IAS 34.Ernst&YoungCertified Public AccountantsHong Kong,28 August 2023Interim Condensed Consolidated Statement of Profit or LossFor the six months ended 30 June 2023 Dongfeng Motor Group Comp

197、any Limited29Six months ended 30 June Notes2023RMB million2022RMB million(Unaudited)(Unaudited and restated)Revenue245,67744,396Cost of sales(40,691)(39,184)Gross profit4,9865,212Other income and gain32,4483,342Selling and distribution expenses(3,589)(3,027)Administrative expenses(2,022)(2,235)Impai

198、rment losses on financial assets629(600)Other expenses7(2,709)(2,894)Finance expenses5(629)(305)Share of profits and losses of:Joint ventures1,4035,225Associates331373 PROFIT BEFORE INCOME TAX42485,091Income tax expense8(42)27 PROFIT FOR THE PERIOD2065,118 Attributable to:Equity holders of the Compa

199、ny1,2705,500Non-controlling interests(1,064)(382)2065,118 Earnings per share attributable to ordinary equity holders of the Company:10Basic and diluted earnings per share14.79 cents63.84 cents The notes on pages 37 to 59 form an integral part of this interim consolidated financial information.Interi

200、m Condensed Consolidated Statement of Comprehensive IncomeFor the six months ended 30 June 2023 2023 Interim Report30Six months ended 30 June 2023RMB million2022RMB million(Unaudited)(Unaudited and restated)PROFIT FOR THE PERIOD2065,118 OTHER COMPREHENSIVE INCOMEComprehensive income that will not be

201、 reclassified to profit or loss in subsequent periodsShare of other comprehensive income of joint ventures and associates(40)Changes in fair value of financial assets at fair value through other comprehensive income3,010(3,931)Others(5)3,005(3,971)Other comprehensive income that may be reclassified

202、subsequently to profit or lossCurrency translation differences(1)(14)Income tax effectItem that will not be reclassified subsequently to profit or loss(752)983 OTHER COMPREHENSIVE INCOME FOR THE PERIOD,NET OF TAX2,252(3,002)TOTAL COMPREHENSIVE INCOME FOR THE PERIOD2,4582,116 Attributable to:Equity h

203、olders of the Company3,5222,498Non-controlling interests(1,064)(382)2,4582,116 The notes on pages 37 to 59 form an integral part of this interim consolidated financial information.Interim Condensed Consolidated Statement of Financial Position As at 30 June 2023 Dongfeng Motor Group Company Limited31

204、Notes30 June2023RMB million 31 December2022RMB million(Unaudited)ASSETSNon-current assetsProperty,plant and equipment1122,92721,672Investment properties2,8222,698Right-of-use assets5,0634,799Goodwill3,1553,155Intangible assets9,0478,553Investments in joint ventures40,37240,880Investments in associat

205、es16,15615,714Financial assets at fair value through other comprehensive income1313,39410,384Other non-current assets30,60034,350Deferred tax assets5,1724,827 Total non-current assets148,708147,032 Current assetsInventories13,23513,132Trade receivables1212,77610,398Bills receivable1,3655,311Due from

206、 joint ventures6,92010,867Prepayments,deposits and other receivables39,09050,776Financial assets at fair value through other comprehensive income 1312,7476,777Financial assets at fair value through profit or loss16,90115,743Pledged bank balances and time deposits142,2611,954Cash and bank balances146

207、2,70868,046 Total current assets168,003183,004 TOTAL ASSETS316,711330,036 The notes on pages 37 to 59 form an integral part of this interim consolidated financial information.As at 30 June 2023 2023 Interim Report32Interim Condensed Consolidated Statement of Financial Position(Continued)The notes on

208、 pages 37 to 59 form an integral part of this interim consolidated financial information.Notes30 June2023RMB million 31 December2022RMB million(Unaudited)EQUITY AND LIABILITIESEquity attributable to equity holders of the CompanyIssued capital8,5318,616Reserves27,11625,082Treasury stock(93)Retained p

209、rofits120,957122,247 156,604155,852Non-controlling interests8,6329,684 TOTAL EQUITY165,236165,536 Non-current liabilitiesInterest-bearing borrowings1628,38024,344Lease liabilities1,9611,928Other long term liabilities1,9782,285Government grants2,3422,499Deferred tax liabilities2,3361,621Provisions1,7

210、041,754 Total non-current liabilities38,70134,431 As at 30 June 2023 Dongfeng Motor Group Company Limited33Interim Condensed Consolidated Statement of Financial Position(Continued)Notes30 June2023RMB million 31 December2022RMB million(Unaudited)Current liabilitiesTrade payables1521,80718,568Bills pa

211、yable25,82322,839Other payables and accruals19,51818,168Contract liabilities4,9213,810Due to joint ventures16,68236,034Interest-bearing borrowings1622,46428,082Lease liabilities314300Income tax payables831,139Provisions1,1621,129 Total current liabilities112,774130,069 TOTAL LIABILITIES151,475164,50

212、0 TOTAL EQUITY AND LIABILITIES316,711330,036 DirectorDirectorThe notes on pages 37 to 59 form an integral part of this interim consolidated financial information.Interim Condensed Consolidated Statement of Changes in Equity For the six months ended 30 June 2023 2023 Interim Report34Attributable to o

213、wners of the companyNon-controlling interestsTotal equity Issued capitalCapital reserves*Treasury stockOther comprehensive income*Statutory reserves*Retained profitsTotalRMB million(Unaudited)RMB million(Unaudited)RMB million(Unaudited)RMB million(Unaudited)RMB million(Unaudited)RMB million(Unaudite

214、d)RMB million(Unaudited)RMB million(Unaudited)RMB million(Unaudited)For the six months ended 30 June 2023As at 1 January 20238,6166,004(93)(645)19,723122,247155,8529,684165,536Total comprehensive income for the period2,2521,2703,522(1,064)2,458Repurchase of shares(207)(207)(207)Cancellation of share

215、s(85)(215)3002022 final dividend(2,560)(2,560)(2,560)Dividends declared to non-controlling interests(39)(39)Capital contribution from non-controlling interests4343Other(3)(3)85 As at 30 June 20238,5315,7861,60719,723120,957156,6048,632165,236 The notes on pages 37 to 59 form an integral part of this

216、 interim consolidated financial information.For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited35Interim Condensed Consolidated Statement of Changes in Equity(Continued)The notes on pages 37 to 59 form an integral part of this interim consolidated financial information.Attribu

217、table to owners of the companyNon-controlling interestsTotal equity Issued capitalCapital reserves*Other comprehensive income*Statutory reserves*Retained profitsTotalRMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million(Unaudited)(Unaudited and restated)(Una

218、udited(Unaudited and restated)(Unaudited and restated)(Unaudited and restated)(Unaudited and restated)(Unaudited and restated)For the six months ended 30 June 2022As at 31 December 20218,6163,2202,21618,387114,903147,3424,722152,064Restatement for business combination under common control77468727114

219、 As at 1 January 2022 as restated8,6163,2972,21618,391114,909147,4294,749152,178Total comprehensive income for the period(3,002)5,5002,498(382)2,116Transfer to reserves1,079(1,079)Share of capital reserve of investments accounted for using the equity method4545452021 final dividend(2,585)(2,585)(2,5

220、85)Dividends declared to non-controlling interests(5)(5)Capital contribution from non-controlling interests2121Transactions with non-controlling interests6161(61)Other72(986)987731083 As at 30 June 20228,6163,475(1,772)19,470117,732147,5214,332151,853 *These reserve accounts comprise the consolidate

221、d reserves of RMB27,116 million as at 30 June 2023(30 June 2022:RMB21,172 million)in the consolidated statement of financial position.Interim Condensed Consolidated Statement of Cash FlowsFor the six months ended 30 June 2023 2023 Interim Report36Six months ended 30 June Note2023RMB million2022RMB m

222、illion(Unaudited)(Unaudited and restated)Cash flows from operating activitiesCash flows used in operating activities(6,442)(2,132)Income tax paid(1,512)(1,763)Cash flows used in operating activities net(7,954)(3,895)Cash flows from investing activitiesAcquisition of subsidiaries,joint ventures and a

223、ssociates net(192)(331)Dividends from joint ventures and associates6,2996,803Purchase of property,plant and equipment,right-of-use assets and intangible assets(4,410)(2,838)Other investing cash flows net2,4106,850 Cash flows generated from investing activities net4,10710,484 Cash flows from financin

224、g activitiesProceeds from borrowings and bonds12,14014,342Repayments of borrowings and bonds(11,722)(7,700)Dividends paid to non-controlling interests(39)(5)Other financing cash flows net(254)(56)Cash flows generated from financing activities net1256,581 Net(decrease)/increase in cash and cash equiv

225、alents(3,722)13,170Effects of exchange rate changes on cash and cash equivalents138(159)Cash and cash equivalents at beginning of the period65,24449,030 Cash and cash equivalents at end of the period1461,66062,041 The notes on pages 37 to 59 form an integral part of this interim consolidated financi

226、al information.Notes to Interim Condensed Consolidated Financial InformationFor the six months ended 30 June 2023 Dongfeng Motor Group Company Limited371.1 CORPORATE INFORMATIONDongfeng Motor Group Company Limited(the“Company”)is a joint stock limited liability company incorporated in the Peoples Re

227、public of China(the“PRC”).The registered office of the Company is located at Special No.1 Dongfeng Road,Wuhan Economic and Technology Development Zone,Wuhan,Hubei Province,the PRC.During the period,the Company and its subsidiaries(collectively referred to as the“Group”)were principally engaged in th

228、e manufacturing and sales of automobiles,engines and other automotive parts and rendering of financing services.In the opinion of the directors,the holding company and the ultimate holding company of the Company is Dongfeng Motor Corporation(“DMC”),a state-owned enterprise established in the PRC.Thi

229、s interim condensed consolidated financial information is presented in Renminbi(“RMB”),unless otherwise stated.This interim condensed consolidated financial information was approved for issue by the Board of Directors on 28 August 2023.1.2 BASIS OF PREPARATIONThe interim condensed consolidated finan

230、cial statements for the six months ended 30 June 2023 have been prepared in accordance with International Accounting Standards(“IAS”)34 Interim Financial Reporting.The interim condensed consolidated financial information does not include all the information and disclosures required in the annual fin

231、ancial statements,and should be read in conjunction with the Groups annual consolidated financial statements for the year ended 31 December 2022.1.3 CHANGES IN ACCOUNTING POLICIESThe accounting policies adopted in the preparation of the interim condensed consolidated financial information are consis

232、tent with those applied in the preparation of the Groups annual consolidated financial statements for the year ended 31 December 2022,except for the adoption of the following new and revised International Financial Reporting Standards(“IFRS”)for the first time for the current periods financial infor

233、mation.For the six months ended 30 June 2023 2023 Interim Report38Notes to Interim Condensed Consolidated Financial Information(Continued)1.3 CHANGES IN ACCOUNTING POLICIES(CONTINUED)(i)New and amended standards adopted by the GroupA number of new or amended standards became applicable for the curre

234、nt reporting period and the Group had to change its accounting policies accordingly.The impact of adopting following standards are disclosed below:Effective for annual periods beginning on or afterAmendments to IAS 8Definition of Accounting Estimates 1 January 2023Amendments to IAS 1 and IFRS Practi

235、ce Statement 2Disclosure of Accounting Policies1 January 2023Amendments to IAS 12Deferred Tax related to Assets and Liabilities arising from a Single Transaction1 January 2023The adoption of those amendments did not have any significant impact on the Groups interim financial information.The Group do

236、es not early adopt the following amended standards that have been issued but are not yet effective for the financial year beginning 1 January 2023:Effective for annual periods beginning on or afterAmendments to IFRS 16Lease Liability in a Sale and Leaseback1 January 2024Amendments to IAS 1Classifica

237、tion of liabilities as current or Non-current1 January 2024Amendments to IAS 1Non-current Liabilities with Covenants1 January 2024Amendments to IAS 7 and IFRS 7Supplier Finance Arrangements1 January 2024The Group is assessing the full impact of the new standards,new interpretations and amendments to

238、 standards and interpretations.For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited39Notes to Interim Condensed Consolidated Financial Information(Continued)1.4 ESTIMATESThe preparation of this interim condensed consolidated financial information requires management to make jud

239、gments,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities,income and expenses.Actual results may differ from these estimates.In preparing this interim condensed consolidated financial information,the significant judgments m

240、ade by management in applying the Groups accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2022.1.5 RESTATEMENT OF THE CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSSIn Dece

241、mber 2022,the Group acquired 75.87%equity interest of Nandou Liuxing System Integration Co.,Ltd.(“Nandou System”)from DMC.The consideration of this business combination under common control was RMB89 million.For this business combination under common control,the financial information of the Group an

242、d that of Nandou System has been combined,by using the pooling of interests method,as if the Group had acquired Nandou System from the beginning of the earliest financial period presented.The net assets of the Group,Nandou System is combined using the existing book values from the controlling partys

243、 perspective.No amount is recognised in consideration for goodwill or excess of the Groups interest in the net fair value of Nandou Systems identifiable assets,liabilities and contingent liabilities over the cost of acquisition at the time of common control combination.The difference between the acq

244、uisition consideration and book value of Nandou System at the time of common control combination is taken to the reserves of the Group.Accordingly,the Group has restated the comparative information in the interim financial information.The impact of restatement to the profit and loss account is as fo

245、llows:For the six months ended 30 June 2023 2023 Interim Report40Notes to Interim Condensed Consolidated Financial Information(Continued)1.5 RESTATEMENT OF THE CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS(CONTINUED)For the six months ended 30 June 2022consolidated statement of profit or loss A

246、s per originally reportedRetrospective adjustmentsAs restatedRMB millionRMB millionRMB millionRevenue44,3098744,396Cost of sales(39,105)(79)(39,184)Gross profit5,20485,212Other income and gain3,3423,342Selling and distribution expenses(3,019)(8)(3,027)Administrative expenses(2,223)(12)(2,235)Impairm

247、ent losses on financial assets(604)4(600)Other expenses(2,869)(25)(2,894)Finance expenses(300)(5)(305)Share of profits and losses of:Joint ventures5,2255,225Associates373373 PROFIT BEFORE INCOME TAX5,129(38)5,091 Income tax expense2727 PROFIT FOR THE PERIOD5,156(38)5,118 Profit attributable to:Equit

248、y holders of the company5,529(29)5,500Non-controlling interests(373)(9)(382)5,156(38)5,118 For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited41Notes to Interim Condensed Consolidated Financial Information(Continued)2.REVENUE AND OPERATING SEGMENT INFORMATIONFor management pur

249、poses,the Group is organized into business units based on their products and services,and has four reportable operating segments as follows:The commercial vehicles segment mainly manufactures and sells commercial vehicles,and its related engines and other automotive parts;The passenger vehicles segm

250、ent mainly manufactures and sells passenger vehicles,and its related engines and other automotive parts;The financing service segment mainly provides financing services to external customers and companies within the Group;and The corporate and others segment mainly manufactures and sells other autom

251、obile related products.Management monitors the results of the Groups operating segments separately for the purpose of making decisions about resource allocation and performance assessment.Segment performance is evaluated based on operating segment profit or loss and is measured consistently with pro

252、fit or loss in the consolidated financial information.However,Group financing(including finance costs)and income taxes are managed on a Group basis and are not allocated to operating segments.As the chief operating decision maker of the Group considers that most of the Groups consolidated revenue an

253、d results are attributable to the market in the PRC,and the Groups consolidated assets are mainly located inside the PRC,no geographical information is presented.During the six months ended 30 June 2022 and 2023,no revenue from transactions with a single external customer amounted to 10%or more of t

254、he Groups total revenue.For the six months ended 30 June 2023 2023 Interim Report42Notes to Interim Condensed Consolidated Financial Information(Continued)2.REVENUE AND OPERATING SEGMENT INFORMATION(CONTINUED)For the six months ended 30 June 2023Commercial vehiclesRMB million(Unaudited)Passenger veh

255、iclesRMB million(Unaudited)Financing serviceRMB million(Unaudited)Corporate and othersRMB million(Unaudited)EliminationRMB million(Unaudited)TotalRMB million(Unaudited)Segment revenueSales to external customers25,47416,0023,0941,10745,677Intersegment sales521082012(192)25,52616,1103,1141,119(192)45,

256、677 ResultsSegment results(1,814)(2,456)1,573512994(1,191)Interest income2341151,061(1,076)334Finance expenses(629)Share of profits and losses of:Associates(10)33433(125)331Joint ventures2321,174(3)1,403 Profit before income tax248Income tax expense(42)Profit for the period206 The revenue from the t

257、ransfer of goods are mainly recognized at a point in time.For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited43Notes to Interim Condensed Consolidated Financial Information(Continued)2.REVENUE AND OPERATING SEGMENT INFORMATION(CONTINUED)For the six months ended 30 June 2022Com

258、mercial vehiclesRMB millionPassenger vehiclesRMB millionFinancing serviceRMB millionCorporate and othersRMB millionEliminationRMB million TotalRMB million(Unaudited)(Unaudited and restated)(Unaudited)(Unaudited)(Unaudited)(Unaudited and restated)Segment revenueSales to external customers20,79419,788

259、3,21060444,396Intersegment sales141311233(190)20,80819,9193,222637(190)44,396 ResultsSegment results(769)(2,228)1,0602561,059(622)Interest income317153987(1,037)420Finance expenses(305)Share of profits and losses of:Associates(49)11493(82)373Joint ventures(51)5,22160(5)5,225 Profit before income tax

260、5,091Income tax expense27 Profit for the period5,118 The revenue from the transfer of goods are mainly recognized at a point in time.For the six months ended 30 June 2023 2023 Interim Report44Notes to Interim Condensed Consolidated Financial Information(Continued)3.OTHER INCOME AND GAINSix months en

261、ded 30 June 2023RMB million(Unaudited)2022RMB million(Unaudited)Investment income/(loss)from disposal of subsidiaries,joint ventures and associates791,015Interest income374420Government grants and subsidies256344Dividends from financial assets at fair value through other comprehensive income1,013719

262、Stationing fee received from the joint ventures101105Others625739 2,4483,342 4.PROFIT BEFORE INCOME TAXThe Groups profit before income tax is arrived at after charging/(crediting):Six months ended 30 June 2023RMB million2022RMB million(Unaudited)(Unaudited and restated)Cost of inventories sold40,045

263、38,801Interest expense for financing services(included in cost of sales)354354Write-down of inventories to net realisable value29229Research and development costs2,0012,488Depreciation of property,plant and equipment1,2601,322Amortisation of intangible assets684592Amortization of long-term deferred

264、expenses5612Depreciation of right-of-use assets153174Depreciation of investment properties4226(Reversal of impairment)/impairment losses on financial assets(29)600Gain on disposal of items of property,plant and equipment,net(63)(178)Government grants(256)(334)Employee benefit expense3,4793,453Exchan

265、ge differences,net309(147)For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited45Notes to Interim Condensed Consolidated Financial Information(Continued)5.FINANCE EXPENSESSix months ended 30 June 2023RMB million2022RMB million(Unaudited)(Unaudited and restated)Interest expenses

266、on bank loans and other borrowings288476Interest expenses on lease liabilities5557Exchange loss/(gain)of financing activities,net286(228)Finance expenses629305 6.IMPAIRMENT LOSSES ON FINANCIAL ASSETSSix months ended 30 June 2023RMB million2022RMB million(Unaudited)(Unaudited and restated)(Reversal o

267、f impairment)/impairment losses of trade receivables(23)243(Reversal of impairment)/impairment losses of other receivables(5)10(Reversal of impairment)/impairment losses of loans and receivables from financing services(1)347 (29)600 For the six months ended 30 June 2023 2023 Interim Report46Notes to

268、 Interim Condensed Consolidated Financial Information(Continued)7.OTHER EXPENSESix months ended 30 June 2023RMB million2022RMB million(Unaudited)(Unaudited and restated)Research costs2,0012,488Others708406 2,7092,894 8.INCOME TAX EXPENSESix months ended 30 June 2023RMB million2022RMB million(Unaudit

269、ed)(Unaudited)Current income tax424882Deferred income tax(382)(909)Income tax expense for the period42(27)Under the PRC Corporate Income Tax Law and the respective regulations,the corporate income tax for the Company,its subsidiaries and jointly-controlled entities is calculated at the rates ranging

270、 from 15%to 25%,based on their respective estimated assessable profits for the existing legislation,interpretations and practices in respect thereof.No provision for Hong Kong profits tax has been made as the Group had no assessable profits arising in Hong Kong during the six months ended 30 June 20

271、23 and 30 June 2022.Deferred tax assets were mainly recognized in respect of temporary differences relating to certain future deductible expenses or tax loss for the purpose of corporate income tax.According to IAS 12 Income Taxes,deferred income tax assets and liabilities are measured at the tax ra

272、tes that are expected to apply to the periods when the assets are realized or the liabilities are settled.For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited47Notes to Interim Condensed Consolidated Financial Information(Continued)9.DIVIDENDThe board of directors does not reco

273、mmend the payment of any interim dividend for the six months ended 30 June 2023(six months ended 30 June 2022:Nil).Resolution for distribution of a final dividend of RMB2,560 million(RMB0.3 per share)based on the annual net profit for 2022 attributable to shareholders was approved by the shareholder

274、s of the Company at the annual general meeting held on 20 June 2023,and was paid on 15 August 2023 to shareholders.10.EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANYThe calculation of basic earnings per share is based on:Six months ended 30 June 2023RMB million(Unaudited)20

275、22RMB million(Unaudited)Earnings:Profit attributable to ordinary equity holders of the Company1,2705,500 Number of shares millionmillionShares:Weighted average number of ordinary shares in issue during the period8,5868,616 Earnings per share14.79 cents63.84 cents During the six months ended 30 June

276、2023,84,850,000 repurchased shares were cancelled by the Company.Diluted earnings per share equals basic earnings per share as the Company has no potentially dilutive ordinary shares in issue for the six months ended 30 June 2023 and 30 June 2022.For the six months ended 30 June 2023 2023 Interim Re

277、port48Notes to Interim Condensed Consolidated Financial Information(Continued)11.PROPERTY,PLANT AND EQUIPMENTBuildingsEquipmentConstruction in progressTotalAt 31 Dec 2022,net of accumulated depreciation and impairment6,74912,0012,92221,672Additions4297082,1503,287Disposals(57)(28)(85)Transfer5001,35

278、3(1,853)Transfer to investment properties and intangible assets(384)(39)(423)Depreciation during the period(124)(1,388)(1,512)Impairment(12)(12)At 30 Jun 2023,net of accumulated depreciation and impairment7,11312,6343,18022,927 BuildingsEquipmentConstruction in progressTotalAt 31 Dec 2021,net of acc

279、umulated depreciation and impairment6,18210,7611,88418,827Additions392802,0282,347Disposals(113)(225)(338)Transfer 3231,115(1,438)Transfer to investment properties and intangible assets(167)(67)(234)Disposal of subsidiaries(125)(89)(49)(263)Depreciation during the period(200)(1,122)(1,322)At 30 Jun

280、2022,net of accumulated depreciation and impairment5,93910,7202,35819,017 For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited49Notes to Interim Condensed Consolidated Financial Information(Continued)12.TRADE RECEIVABLESSales of the Groups commercial and passenger vehicles are

281、normally settled on an advance receipt basis,whereby the dealers are required to pay in advance either in cash or by bank acceptance drafts.However,in the case of long-standing customers with bulk purchases and a good repayment history,the Group may offer these customers credit terms that are genera

282、lly between 30 and 180 days.For sales of engines and other automotive parts,the Group generally offers their customers credit terms that are generally between 30 and 180 days.Trade receivables are non-interest bearing.An aging analysis of the Groups trade receivables,net of provision for impairment,

283、based on the invoice date,is as follows:30 June31 December20232022RMB million RMB million(Unaudited)Within three months5,304 4,839More than three months but within one year3,924 2,483More than one year3,548 3,076 12,776 10,398 For the six months ended 30 June 2023 2023 Interim Report50Notes to Inter

284、im Condensed Consolidated Financial Information(Continued)13.FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME30 June31 December20232022RMB millionRMB million(Unaudited)Non-current:Listed equity investments at fair value through other comprehensive income Stellantis N.V.(i)12,5689,77

285、4 FORVIA SE659407Unlisted equity investments at fair value through other comprehensive income167203 13,39410,384 Current:Unlisted debt instruments at fair value through other comprehensive income12,747 6,777 26,141 17,161 (i)The Group held 99,223,907 shares of Stellantis,with a shareholding of 3.17%

286、.The Group cannot directly participate in or influence over the financial and operating decisions of Stellantis and hence cannot exercise significant influence on Stellantis and the investment is accounted for as financial assets at fair value through other comprehensive income.For the six months en

287、ded 30 June 2023 Dongfeng Motor Group Company Limited51Notes to Interim Condensed Consolidated Financial Information(Continued)14.CASH AND CASH EQUIVALENTS AND PLEDGED BANK BALANCES AND TIME DEPOSITS30 June31 December20232022RMB millionRMB million(Unaudited)Cash and bank deposits49,523 53,391Time de

288、posits15,446 16,609 64,969 70,000Less:Pl edged bank balances and time deposits for securing general banking facilities(2,261)(1,954)Cash and bank balances in the consolidated statement of financial position62,708 68,046Less:No n-pledged time deposits with original maturity of three months or more wh

289、en acquired(1,048)(2,802)Cash and cash equivalents in the consolidated statement of cash flow 61,660 65,244 15.TRADE PAYABLESAn aging analysis of the trade payables of the Group,based on the invoice date,is as follows:30 June31 December20232022RMB millionRMB million(Unaudited)Within three months19,1

290、0817,043More than three months but within one year2,275773More than one year424752 21,80718,568 For the six months ended 30 June 2023 2023 Interim Report52Notes to Interim Condensed Consolidated Financial Information(Continued)16.INTEREST-BEARING BORROWINGSInterest expense on borrowings for the six

291、months ended 30 June 2023 was RMB288 million(the restated amount for the six months ended 30 June 2022:RMB476 million).The guaranteed notes were issued in the aggregate principal amount of EUR100 million on 23 October 2018 and were registered in the denomination of EUR100,000 each and to be expired

292、in 5 years.The notes bear interest from 23 October 2018 at a rate of 1.606%per annum.Interest on the notes is pay able annually on 23 October each year.The notes have been listed on the Irish Stock Exchange.The unsecured notes were public issued in amount of RMB1,000 million on 5 December 2018 and w

293、ere offered in the denomination of RMB100 each and to be expired in 5 years.The notes bear interest from 6 December 2018 at a rate of 4.21%per annum.Interest on the notes is payable annually on 6 December each year.The notes have been listed on the Shanghai Stock Exchange.The unsecured notes were pu

294、blic issued in amount of RMB3,000 million on 26 February 2020 and were offered in the denomination of RMB100 each and to be expired in 3 years.The notes bear interest from 27 February 2020 at a rate of 3.05%per annum.Interest on the notes is payable annually on 27 February each year.The notes was fu

295、lly paid in February 2023.The guaranteed notes were issued in the aggregate principal amount of EUR725 million on 20 October 2021 and were registered in the denomination of EUR100,000 each and to be expired in 3 years.The notes bear interest from 19 October 2021 at a rate of 0.425%per annum.Interest

296、 on the notes is payable annually on 19 October each year.The notes have been listed on the Hong Kong Exchanges and Clearing Market.The unsecured notes were public issued in amount of RMB2,000 million on 15 March 2022 and were offered in the denomination of RMB100 each and to be expired in 3 years.T

297、he notes bear interest from 15 March 2022 at a rate of 3.00%per annum.Interest on the notes is payable annually on 15 March each year.The notes have been listed on the Shanghai Stock Exchange.For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited53Notes to Interim Condensed Conso

298、lidated Financial Information(Continued)17.SHARE CAPITALThe Company repurchased 84,850,000 shares of its shares on the Hong Kong Stock Exchange at a total consideration of RMB300 million,which was paid wholly out of retained profits in accordance with section 257 of the Hong Kong Companies Ordinance

299、.The repurchased shares were cancelled during the period,resulting in a decrease in share capital of RMB85 million and capital reserve of RMB215 million.18.COMMITMENTSThe Group had the following capital commitments at the end of the reporting period:30 June31 December20232022RMB millionRMB million(U

300、naudited)Contracted,but not provided for:Property,plant and equipment786 901 For the six months ended 30 June 2023 2023 Interim Report54Notes to Interim Condensed Consolidated Financial Information(Continued)19.RELATED PARTY TRANSACTIONS(a)Transactions with DMC,its subsidiaries,associates and joint

301、ventures,the Groups joint ventures and associates,non-controlling shareholders of a subsidiary and their subsidiaries and subsidiaries joint venturesSave as disclosed elsewhere in this interim condensed consolidated financial information,during the six months ended 30 June 2023,the Group had the fol

302、lowing significant transactions with its related parties:Six months ended 30 June 2023RMB million(Unaudited)2022RMB million(Unaudited)Purchases of automotive parts/raw materials from and the payment of royalty fee to:DMC,its subsidiaries,associates and joint ventures198307Joint ventures2,3844,179Ass

303、ociates20772Subsidiaries joint ventures3,8901,248 6,6795,806 Purchases of automobiles from:DMC,its subsidiaries,associates and joint ventures32Joint ventures4,4625,456 4,4655,458 Purchases of items of property,plant and equipment and intangible assets from:DMC,its subsidiaries,associates and joint v

304、entures160Joint ventures 323482 324542 For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited55Notes to Interim Condensed Consolidated Financial Information(Continued)19.RELATED PARTY TRANSACTIONS(CONTINUED)(a)Transactions with DMC,its subsidiaries,associates and joint ventures,t

305、he Groups joint ventures and associates,non-controlling shareholders of a subsidiary and their subsidiaries and subsidiaries joint ventures(Continued)Six months ended 30 June 2023RMB million(Unaudited)2022RMB million(Unaudited)Purchases of services from:DMC,its subsidiaries,associates and joint vent

306、ures373399Joint ventures 279411Associates5Subsidiaries joint ventures27Non-controlling shareholders of a subsidiary and their subsidiaries12 658839 Sales of automotive parts/raw materials to:DMC,its subsidiaries,associates and joint ventures2153Joint ventures 1,0331,384Associates18Subsidiaries joint

307、 ventures506 1,1221,443 Sales of automobiles to:DMC,its subsidiaries,associates and joint ventures33663Joint ventures 125155Non-controlling shareholders of a subsidiary and their subsidiaries599 466317 For the six months ended 30 June 2023 2023 Interim Report56Notes to Interim Condensed Consolidated

308、 Financial Information(Continued)Six months ended 30 June 2023RMB million(Unaudited)2022RMB million(Unaudited)Provision of services to and rental income from:DMC,its subsidiaries,associates and joint ventures4728Joint ventures279112Associates64 332144 Interest expense paid to:DMC,its subsidiaries,as

309、sociates and joint ventures117109Joint ventures166202Subsidiaries joint ventures1 283312 Interest incomes from:DMC,its subsidiaries,associates and joint ventures2926Joint ventures6413 9339 Fee and commission incomes from joint ventures55 Stationing Fee received from joint ventures101105 Interest exp

310、enses of lease liabilities to DMC3942 These transactions were conducted in accordance with the terms and conditions agreed between the Group and its related parties.19.RELATED PARTY TRANSACTIONS(CONTINUED)(a)Transactions with DMC,its subsidiaries,associates and joint ventures,the Groups joint ventur

311、es and associates,non-controlling shareholders of a subsidiary and their subsidiaries and subsidiaries joint ventures(Continued)For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited57Notes to Interim Condensed Consolidated Financial Information(Continued)19.RELATED PARTY TRANSAC

312、TIONS(CONTINUED)(b)Outstanding balances with related parties30 June31 December20232022RMB millionRMB million(Unaudited)Receivables from related parties included in trade receivables:DMC,its subsidiaries,associates and joint ventures6966Associates41Non-controlling shareholders of a subsidiary and the

313、ir subsidiaries1114 111180 Receivables from related parties included in prepayments,deposits,other receivables:DMC,its subsidiaries,associates and joint ventures933993Associates 54171Non-controlling shareholders of a subsidiary and their subsidiaries1 9881,164 For the six months ended 30 June 2023 2

314、023 Interim Report58Notes to Interim Condensed Consolidated Financial Information(Continued)19.RELATED PARTY TRANSACTIONS(CONTINUED)(b)Outstanding balances with related parties(Continued)30 June31 December20232022RMB millionRMB million(Unaudited)Payables to related parties included in trade payables

315、:DMC,its subsidiaries,associates and joint ventures579691Associates 253144 832835 Payables to related parties included in other payables and accruals and contract liabilities:DMC,its subsidiaries,associates and joint ventures205332Associates1118 216350 Payables to DMC,its subsidiaries,associates and

316、 joint ventures included in lease liabilities:1,6541,570 Payables to non-controlling shareholders of a subsidiary and their subsidiaries included in other long term liabilities:172171 Payables to related parties included in interest-bearing borrowingsDMC,its subsidiaries,associates and joint venture

317、s9,13611,053Associates18 9,13611,071 Receivables and payables from and to related parties are non-interest-bearing,except for those deposit-taking from related parties and loans granted to related parties which are operated by the subsidiaries engaged in financial businesses.For the deposit-taking f

318、rom and loans granted to related parties,the repayment terms and the interest rates were mutually agreed.For the six months ended 30 June 2023 Dongfeng Motor Group Company Limited59Notes to Interim Condensed Consolidated Financial Information(Continued)19.RELATED PARTY TRANSACTIONS(CONTINUED)(c)Comp

319、ensation of key management personnel of the GroupSix months ended 30 June 2023RMB thousand(Unaudited)2022RMB thousand(Unaudited)Short-term employee benefits3,6293,752Post-employment benefits195 213 Total compensation to key management personnel3,8243,965 2023 Interim Report60DefinitionsIn this inter

320、im report,unless the context otherwise requires,the following terms shall have the meanings set out below.“Company”東風汽車集團股份有限公司(Dongfeng Motor Group Company Limited),a joint stock limited company registered in the PRC on 12 October 2004 in accordance with the laws of the PRC or where the context ref

321、ers to any time prior to the date of incorporation,those entities and businesses which were contributed to and conducted by the Company upon its establishment“Dongfeng Joint Venture Companies”Jointly-venture Entities in which the Company,its subsidiaries or Jointly-venture Entities(including their r

322、espective subsidiaries and Jointly-venture Entities)have equity interests as at 30 June 2023.“Group”or“Dongfeng Motor Group”the Company and its subsidiaries,the Dongfeng Joint Venture Companies and their respective subsidiaries and associates.“Joint Venture Company”A joint venture is a type of joint

323、 arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture.Joint control,is the contractually agreed sharing of control of an arrangement,which exists only when decisions about the relevant activities require the unanimous consent o

324、f the parties sharing control.“Dongfeng Motor Corporation”or“DMC”東風汽車集團有限公司(Dongfeng Motor Corporation）,a state-owned enterprise incorporated under the laws of the PRC and the parent of the Company.“PRC”or“China”the Peoples Republic of China.Except where the context requires,geographical references

325、in this interim report to the PRC or China exclude Hong Kong,Macau or Taiwan“Listing Rules”the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited,as amended from time to time“SFO”the Securities and Futures Ordinance(Chapter 571 of the Laws of Hong Kong),as amended,supplemented or otherwise modified from time to time