Jiangling Motors Corporation, Ltd.

2026-08

2026 Half-year Report

Chapter I Important Notes, Contents and Abbreviations

Important Notes

The Company’s Board of Directors and its members and senior management warrant that the contents of the Half‑Year Report are true, accurate and complete, free of any false records, misleading statements or material omissions, and assume individual and joint‑and‑several legal liabilities therefor. Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department, Jiang Nan, warrant that the Financial Statements in this Half-year Report are true, accurate and complete.

All the Directors were present at the Board meeting to review this Half-year Report.

Future plans, development strategies and other forward-looking statements in this Report do not constitute a substantive commitment of the Company to investors. Investors are reminded to note investment risks.

The Company's possible risks and countermeasures are set out in Section 3 of this Report, "Management’s Discussion and Analysis". Please investors refer to the relevant content.

Neither cash dividend nor stock dividend is to be distributed. The Board has decided not to convert capital reserves into share capital for this period.

The Half-year Report is prepared in Chinese and English. In case of discrepancy, the Chinese version will prevail.

Contents

Chapter I Important Notes, Contents and Abbreviations....2

Chapter II Brief Introduction and Operating Highlights....5

Chapter III Management Discussion and Analysis....8

Chapter IV Corporate Governance Structure, Environment and Social...21

Chapter V Major events....23

Chapter VI Share Capital Changes & Shareholders....27

Chapter VII Bond related Information....31

Chapter VIII Financial Statements....32

Catalogue on Documents for Reference

1. Originals of 2026 Half-year financial statements signed by Chairman, Chief Financial Officer and Chief of Finance Department.

2. Originals of all the documents and public announcements disclosed in newspapers designated by CSRC in the first half of 2026.

3. English version of the Half-year Report prepared per the China GAAP.

Abbreviations:

CSRC

JMCG

Ford

JIC

JMC or the Company

EVP

CFO

VP

China Securities Regulatory Commission

Jiangling Motors Group Co., Ltd.

Ford Motor Company

Nanchang Jiangling Investment Co., Ltd.

Jiangling Motors Corporation, Ltd.

Executive Vice President

Chief Financial Officer

Vice President

Chapter II Brief Introduction and Operating Highlights

1. Company’s information

1. Company’s information Share’s name Jiangling Motors, Jiangling B Share’s Code 000550, 200550 Place of listing Shenzhen Stock Exchange Company’s Chinese name 江铃汽车股份有限公司 English name Jiangling Motors Corporation, Ltd. Abbreviation JMC Company legal representative Qiu Tiangao

2. Contact person and method

3. Other matters

I. Contact methods

Changes of registered address, headquarter address, postal code, website and e-mail in the reporting period □Applicable Not Applicable

The Company's registered address, headquarter address, postal code, website and e-mail remain unchanged during the reporting period. For details, please refer to the 2025 Annual Report.

II. Changes of newspapers and website for information disclosure, and place for accessing half-year report in the reporting period □Applicable Not Applicable

There is no change of names of the media and website of Stock Exchange for publication of the Company’s Half-year Report and the place for accessing the Company’s Half-year Report in the reporting period. Please refer to 2025 Annual Report for details.

III. Other Relevant Information

Whether other relevant information has changed during the reporting period □Applicable Not Applicable

4. Main accounting data and financial indicators

Whether the previous accounting data should be retroactively adjusted? □Yes No

Unit: RMB

5. Accounting data difference between China GAAP and IFRS

I. Differences in net profit and net assets in financial statements between in accordance with international accounting standards and Chinese accounting standards □Applicable Not Applicable

II. Differences in net profit and net assets in financial statements between in accordance with overseas accounting standards and Chinese accounting standards □Applicable Not Applicable

6. Non-recurring profit and loss items and amounts Applicable □Not Applicable

Details of other profit and loss items that meet the definition of non-recurring profit and loss

□Applicable Not Applicable

There is no other profit and loss items that meet the definition of non-recurring profit and loss in the Company.

The description of the non-recurring profit and loss items listed in Corporate Information Disclosure of Public Issuing Securities No.1 are defined as recurring profit and loss items

□Applicable Not Applicable

The Company does not have a situation in which the non-recurring profit and loss items listed in No.1 of Corporate Information Disclosure Announcement No.1 are defined as recurring profit and loss.

Chapter III Management Discussion and Analysis

1. Company’s Core Business During the Reporting Period

JMC is a comprehensive automotive manufacturer integrating R&D, manufacturing, sales, and service of complete vehicles and automotive components. It is a National High-Tech Enterprise, a National Innovative Pilot Enterprise, and a "National Vehicle Export Base," and has been ranked among the world's 100 most valuable automotive brands for many consecutive years. Its main products include JMC-brand light truck, Pickup, and light bus, as well as Ford-brand light bus, pickup trucks, MPV, and other commercial vehicles and passenger SUV models. The company also produces engines, frames, axles, and other components.

In terms of R&D strategy, the company is building a technological innovation system centered on new energy vehicle technologies, intelligent connected vehicle technologies, and other key areas. In the first half of 2026, the company has achieved phased breakthroughs in core technology development, including hybrid powertrain systems, NVH control, and power platforms. In the field of intelligence, it is advancing the development of a next-generation vehicle architecture platform, with a focus on centralized computing, integrated cockpit and autonomous driving, and full-scenario intelligent driving, while pursuing the goals of high scalability, high commonality, high safety, and high costeffectiveness.

In terms of manufacturing, the company has comprehensively deployed smart manufacturing. The two major vehicle manufacturing bases at Xiaolan and Fushan have fully established a complete whole-chain vehicle manufacturing system, including stamping, welding, painting, final assembly, CKD parts warehousing, vehicle testing tracks, and intelligent logistics support. The overall automation rate reaches as high as 98%, with 100% automation in core assembly operations, forming full-industry-chain manufacturing capabilities for light commercial vehicles and their components.

In terms of sales and service, in the domestic market, it took the lead in establishing a modern marketing system, adopting an exclusive dealership model integrating sales, spare parts, service, and survey—a "four-in-one" approach—with over 1,000 dealerships in total. In overseas markets, the company continues to expand cooperative distribution channels, with its export footprint now covering more than 120 countries and regions worldwide. In the first half of 2026, cumulative exports grew by 44.8% year-on-year.

In terms of the post-sales ecosystem, the company is deeply engaged in urban delivery capacity, providing customers with cost-effective new energy commercial vehicle operation solutions. At the same time, it is deepening collaboration in the used-vehicle sector and making strategic deployments in battery-swapping services, autonomous vehicles, and other ecosystem initiatives.

Looking ahead, the company will continue to focus on core technology areas such as new energy powertrains, intelligent connected vehicles, and nextgeneration platforms. It will accelerate its global expansion, adhere to valuedriven and lean operations, and transition from a scale-expansion development model to a lean value-growth model.

2. Core Competitiveness Analysis

The Company is a modern Sino-foreign joint venture stock-limited enterprise integrating automotive R&D, manufacturing, and sales. Leveraging its leading position in the light commercial vehicle market and advanced technologies, it stands as a pioneer in China's automotive industry, providing superior products and solutions for the smart logistics sector. The Company is recognized as a National High-tech Enterprise, a National Innovative Pilot Enterprise, a State-recognized Corporate Technology Center, a National Industrial Design Center, a National Intellectual Property Demonstration Enterprise, and a National Vehicle Export Base. It has been listed among the world's top 100 most valuable automotive brands for multiple consecutive years. Guided by its corporate vision of ‘Smart Mobility, Global Connectivity ’, We strive to evolve into a green and smart mobility technology company with cutting-edge technologies, superior quality and worldwide customer trust. In the first half of 2026, within its industry segments: JMC light buses maintained the No. 1 market share; JMC pickup trucks ranked No. 2 in market share; JMC light trucks ranked No. 7 in market share.

The Company has always remained customer-centric. As a provider of fullscenario solutions for light commercial vehicles, it offers customized and scalable integrated solutions based on customer usage scenarios, continuously covering urban delivery, passenger commuting, recreational camping, medical emergency services, and specialized modification applications. Through C2B customized product services, end-to-end logistics solutions, and mobility platform services, the Company helps customers improve operational efficiency and reduce total cost of ownership throughout the vehicle lifecycle.

The Company continues to refine its product portfolio of light bus, light truck, and Pickup. JMC light buses address the needs of freight transport, passenger transport, and specialized modifications, while strengthening the synergy between conventional powertrain and new energy products. JMC light trucks, driven by customer insights, are steadily advancing new energy models such as the E-Shunda and the next-generation Shunda series, enhancing loading efficiency, driving comfort, and energy savings. JMC pickup trucks are available in three major series—Baodian, Yuhu, and Daodao—covering a wide range of applications from workhorse tools and commercial-passenger dual-purpose vehicles to off-road leisure models. With scenario-based variants, the Company is enriching its full-price-band product matrix.

The Company adheres to a dual-brand strategy encompassing its own proprietary brand and the Ford brand, fully leveraging its own strengths while deeply integrating into Ford's global system. In terms of technological R&D, the Company draws on Ford's global platforms to continuously enhance its independent R&D system and global digital design platform, and collaborates with Ford on the development, design, and launch of specific new products.

In terms of brand ecosystem development, the Ford brand continues to build the "Ford Beyond" lifestyle system, which encompasses four major pillars: experience spaces, outdoor lifestyle communities, personalized boutique modifications, and vehicle services/support, delivering a comprehensive offroad and outdoor experience for users. The Ford Bronco Basecamp further enriches the new-energy off-road product lineup and was awarded the Red Dot Product Design Award in 2026 during the reporting period. The locally produced Ford Bronco and Ford Ranger continue to meet user demands for performance, personalization, premium features, and intelligent configurations through a diverse range of series and variants.

In terms of manufacturing management, the Company operates vehicle production bases including the Xiaolan Plant and the Fushan Plant, encompassing advanced manufacturing processes for stamping, welding, painting, final assembly, as well as diesel and gasoline engine production. It continues to build highly intelligent and highly flexible smart manufacturing centers, and enhances multi-variant production efficiency and product quality consistency through digital quality management, flexible production scheduling, and supply chain coordination.

In terms of autonomous driving, the Company continues to deepen the commercial deployment of L4 autonomous delivery vehicles, with a focus on the development and operation of autonomous driving systems for intra-city freight scenarios. It is advancing the coordinated validation of autonomous driving systems, vehicle platforms, and operational use cases, driving the transformation of its commercial vehicle products into smart mobile terminals.

In the field of new energy vehicles, the Company pursues steady yet aggressive progress, accelerating the expansion of its electric vehicle portfolio and market development. For passenger vehicles, it leverages the Ford Bronco Basecamp to broaden new-energy outdoor scenarios. For commercial vehicles, it continues to advance products such as the E-Fushun, E-Shunda, and heavy-duty wide-body high-capacity electric light trucks, refining its new-energy product lineup with a focus on greater loading space, enhanced transport capability, and lower operating costs. Through initiatives such as "JMC Fun-to Drive," the Company explores synergies across products, services, and operational ecosystems.

In terms of export operations, the Company leverages its diversified market expansion capabilities and product quality to continuously promote its light commercial vehicles, pickup trucks, and SUV in overseas markets. The all-new second-generation Ford Territory gasoline and hybrid models have been introduced to markets in the Middle East, Africa, Latin America, the Philippines, and Indochina, with the export product mix and regional footprint steadily being refined.

3. Core Business Analysis

Summary

Refer to the relevant content of “1. the Company’s Core Business During the Reporting Period”.

Year-over-Year Changes of Main Financial Data

Unit: RMB

Significant changes in the composition or source of profits during the reporting period □Applicable Not Applicable

There was no significant change in the composition or source of profits in the period.

Composition of Core Business

Unit: RMB

Reach 10% of Revenue or Profit by Industry, Product or Region

Applicable □Not Applicable

If the Company’s core business scope is adjusted during the reporting period, the Company’s core business data of last year need to be adjusted per the scope in this year □Applicable Not Applicable

4. Non-core business analysis □Applicable Not Applicable

5. Analysis of Assets and Liabilities

I. Major changes

Unit: RMB

II. Main Overseas Assets

□Applicable Not Applicable

III. The fair value of the assets and liabilities.

Applicable □Not Applicable

Unit: RMB

Other change None.

Whether there is a significant change in the measurement attributes of the Company's main assets during the reporting period □Applicable Not Applicable

IV. Restriction on Assets Rights as of the End of the Reporting Period

Unit: RMB

6. Investment Analysis I. Summary □Applicable Not Applicable

II. Obtained Major Equity Investment during the Reporting Period □Applicable Not Applicable

III. Ongoing Major Non-Equity Investment during the Reporting Period □Applicable Not Applicable

IV. Financial Assets Investment (a) Stock Investment □Applicable Not Applicable There was no stock investment during the reporting period.

(b)Derivative Investment

Applicable □Not Applicable

(1) Derivative investments for hedging purposes during the reporting period Applicable □Not Applicable

Units: RMB’000

During the reporting period, the Company did not engage in any derivative investments for speculative purposes.

(2) Derivative investments for speculative purposes during the reporting period

V. Usage of Raised Fund

□Applicable Not Applicable

There was no usage of raised fund on the reporting period.

7. Sales of Major Assets and Equity

I. Sales of Major Assets

□Applicable Not Applicable

No Major Assets were sold during the reporting period.

II. Sales of Major Equity

□Applicable Not Applicable

8. Analysis of major shareholding companies

Applicable □Not Applicable

Operating Results of Main Subsidiaries and Joint-Stock Companies whose impact on JMC’s net profit more than 10%

Unit: RMB’000

Acquisition and disposal of the subsidiaries □Applicable Not Applicable

Description of the main holding and participating companies None.

9. Structured Entities Controlled by JMC □Applicable Not Applicable

10. Potential Challenges and Solutions

In 2026, ongoing geopolitical conflicts continued to impact the global economy, with slowing economic growth, rising inflationary pressures, and heightened global economic uncertainty. China's domestic economy remained generally stable, with GDP growing by 4.7% year-on-year in the first half of the year, demonstrating a trajectory of "stability, resilience, novelty, and optimization," achieving both effective qualitative improvement and reasonable quantitative growth. At the same time, however, China's automotive market has entered a phase of inventory-based attrition, marked by weak domestic consumer demand, steadily rising new energy vehicle penetration, and intensifying industry competition, all of which pose considerable challenges to the Company's operations. To maintain steady and robust growth, the Company will focus on the following key areas:

(1) Market competition and demand shifts.

Challenges and risks: In 2026, due to weak big-ticket consumer spending and the phase-out of policy support, the domestic market continued to contract. Although export growth in the international market exceeded expectations, the external environment has become more complex, severe, and uncertain. At the same time, the fuel-powered vehicle market continued to shrink significantly, while new energy products grew steadily. Market concentration further increased, and industry competition grew even more intense, posing considerable challenges to the Company's operations.

Response measures: The Company will remain customer-centric, grounded in customer needs and new changes in the market environment, while continuously exploring new business growth drivers to seize early opportunities in rapidly evolving industry segments. It will firmly accelerate the strategic pace of new energy transformation, stabilize its core light commercial vehicle business, and capture structural opportunities in the new energy sector. At the same time, the Company will strengthen marketing model innovation, accelerate channel transformation, continue to explore overseas market opportunities, and enhance overseas capability building. By continuously monitoring market and customer insights, it will further improve the competitiveness of its products and services.

(2) Industry Transformation and Technological Revolution.

Challenges and Risks: The automotive industry is experiencing rapid technological iteration, with intensive implementation of new safety regulations, energy consumption constraints, and intelligent connected vehicle compliance rules. These further raise the bar for new vehicle market access, imposing higher requirements on enterprises' R&D capabilities and management standards.

Countermeasures: The company is focusing on the "New Four Modernizations" of the automotive industry—electrification, intelligence, connectivity, and sharing—by concentrating efforts on core key technologies such as new energy powertrains, intelligent connected systems, and next-generation vehicle architecture platforms. On one hand, we are strengthening our R&D foundation by upgrading supporting hardware for product and technology development, expanding and cultivating specialized teams capable of independently developing core technologies, and continuously increasing R&D investment with a strategic emphasis on core technology areas. On the other hand, we are advancing internal digital transformation in depth, proactively collaborating with leading domestic AI model enterprises, universities, and research institutes to establish collaborative R&D channels, thereby accelerating the deployment of artificial intelligence technologies across various business scenarios. Through a synergistic approach that combines independent technology R&D, talent development, digital upgrading, and industry-university-research collaboration, we are comprehensively propelling the company toward high-quality development in electrification, intelligence, connectivity, and sharing.

(3) Cost Competitiveness and Profitability.

Challenges and Risks: As industry competition intensifies, end-user marketing expenditures continue to rise. At the same time, adverse factors on the supply side have become increasingly prominent—prices of raw materials such as precious metals and lithium carbonate are experiencing high-level volatility, automotive chip supply remains tight with procurement costs rising sharply, and the international trade environment is complex and ever-changing. With these multiple pressures converging, the profit margins of the vehicle manufacturing industry have been continuously squeezed, placing sustained strain on the company's cost competitiveness and profitability.

Countermeasures: The company remains firmly committed to prioritizing quality and will continue to provide customers with stable product quality and superior product services. We will vigorously drive marketing innovation and transformation to enhance product competitiveness and further expand sales scale and market share. We will deepen cost reduction and efficiency improvement efforts by continuously carrying out company-wide cost-saving initiatives across all domains—covering manufacturing, product R&D, procurement costs, sales, logistics, and management—to promote optimal resource allocation, improve the effectiveness of resource investment, and enhance operational management efficiency. Through these concrete actions, we aim to improve the company's overall cost competitiveness and profitability, to support the company's high-quality development.

11. Development and implementation of the market value management system and valuation enhancement plan

Whether the Company has a market value management system in place.

□Yes No

Whether the Company has disclosed plans for valuation enhancement. □Yes No

12. Implementation of the action plan of "Double Enhancement of Quality and Return"

Whether the Company has disclosed the action plan of "Double Enhancement of Quality and Return".

□Yes No

1. Changes of Directors and senior management Applicable □Not Applicable

Chapter IV Corporate Governance Structure, Environment and Social

2. Proposal on profit distribution and converting capital reserve to share capital for the reporting period

□Applicable Not Applicable

The Company has decided that neither cash dividend nor stock dividend is to be distributed, and not to convert capital reserve to share capital for the first half of 2026.

3. Implementation of Equity Incentive Plan, Employee Stock Ownership Plan and Other Employee Incentive Method

□Applicable Not Applicable

There was neither equity incentive plan or ESOP, nor other employee incentive method during the reporting period.

4. Environmental Information Disclosure Status

Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental information in accordance with the law.

Applicable □Not Applicable

5. Social responsibility

In the first half of 2026, JMC continued to empower rural revitalization, deepening its "JMC Xiqiao Bridge Project" public welfare brand by donating RMB 2 million to the China Foundation for Rural Development, specifically designated for the construction of convenience bridges. This project was jointly initiated by JMC and the China Foundation for Rural Development in 2007, adhering to the mission of "Building Rural Bridges, Connecting the Path to Revitalization" for nearly two decades. As of the end of June 2026, the company has cumulatively invested over RMB 45.9 million, built 465 convenience bridges, covering 25 provinces (autonomous regions and municipalities directly under the central government) and 132 counties, benefiting more than 700,000 people in underdeveloped areas. These efforts have effectively addressed local transportation difficulties and contributed JMC's strength to the comprehensive revitalization of rural areas.

Chapter V Major Events

1. Commitments by actual controlling parties, shareholders, related parties, acquirers and the Company finished in the reporting period or overdue yet unfinished by the end of the reporting period □Applicable Not Applicable There is no commitment by actual controlling parties, shareholders, related parties, acquirers and the Company finished in the reporting period or overdue yet unfinished by the end of the reporting period.

2. Non-operating funding in the Company occupied by controlling shareholder and its affiliates □Applicable Not Applicable There was no non-operating funding in the Company occupied by controlling shareholder and its affiliates.

3. Illegal external guarantee □Applicable Not Applicable The Company had no illegal external guarantee during the reporting period.

4. Appointment or Dismissal of Accounting Firm Whether the 2026 half-year report is audited? □Yes No JMC 2026 half-year report is not audited.

5. Explanation of the Board of Directors to abnormal opinions from accounting firm for the reporting period □Applicable Not Applicable

6. Explanation of the Board of Directors to abnormal opinions from accounting firm in 2025 report □Applicable Not Applicable

7. Related Matters regarding Bankruptcy □Applicable Not Applicable There was no matter involving bankruptcy during the reporting period.

8. Litigation or arbitration Major Litigation or Arbitration □Applicable Not Applicable There was no major litigation or arbitration during the reporting period.

Other litigation □Applicable Not Applicable

9. Punishment □Applicable Not Applicable

10. Good-faith status of JMC and its controlling shareholder or actual controlling party □Applicable Not Applicable

11. Major related transactions I. Routine related party transactions Applicable □Not Applicable Please refer to the note 8 “Related party Transactions” to the financial statements in the Chapter VIII Financial Statements for details.

Index of the announcement on forecast of the routine related party Transactions:

II. Major related party transaction concerning transfer of assets or equity □Applicable Not Applicable

There was no major related party transaction concerning transfer of assets or equity in the reporting period.

III. Related party transaction concerning joint external investment □Applicable Not Applicable There was no joint external investment during the reporting period.

IV. Related credit and debt Applicable □Not Applicable Is there non-operating related credit and debt? □Yes No

The Company had no non-operating related credit and debt in the reporting period.

V. Transaction with related financial companies or financial companies that the company holds Applicable □Not Applicable

Deposit business

\* Note: JMC applies the consolidated deposit limit in JMCG Finance Company at the end of each month to the lower of the following: 1) 25% of JMCG Finance

Company absorbed deposit in prior year end; or 2) 12% of JMC’s consolidated total cash reserve.

Loan business

Granting credit or other financial business

VI. The transactions between the financial company controlled by the company and its related parties □Applicable Not Applicable The Company has no controlling financial company.

VII. Other major related party transactions □Applicable Not Applicable The Company has no other major related party transaction in the reporting period.

12. Major Contracts and Execution

(1) Entrustment, contract or lease a. Entrustment □Applicable Not Applicable There was no entrustment in the reporting period.

b. Contract □Applicable Not Applicable There was no contract in the reporting period.

c. Lease

Applicable □Not Applicable

Please refer to the Note 5 (12), note 5 (14), note 5 (31), note 5 (62) and note 8 (5) (b) of the financial statements in the Chapter VIII Financial Statements for details.

Project of which the profit and loss brought for the company reaches more than 10% of the total profit of the company during the reporting period □Applicable Not Applicable

There was no leasing project of which the profit and loss brought for the Company reached more than 10% of the total profit of the Company during the reporting period.

II. Major guarantee □Applicable Not Applicable The Company had no external guarantee in the reporting period.

III. Entrusted financial management □Applicable Not Applicable There was no entrusted financial management in the reporting period.

IV. Other Major Contracts

□Applicable Not Applicable

There was no other major contract in the reporting period.

13. External Research, Communication, and Media Interview to the Company Applicable □Not Applicable

14. Other major events

□Applicable Not Applicable

There was no other major event in the reporting period.

15. Major event of JMC subsidiary □Applicable Not Applicable

Chapter VI Share Capital Changes & Shareholders

1. Changes of shareholding structure

I. Table of the changes of shareholding structure

Causes of shareholding changes □Applicable Not Applicable

Approval of changes of shareholding structure □Applicable Not Applicable

Shares Transfer □Applicable Not Applicable

Progress in the implementation of share repurchase □Applicable Not Applicable

The implementation progress of reducing the buyback shares by means of centralized bidding □Applicable Not Applicable

Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’ equity attributable to the equity holders of the Company, generated from shares transfer □Applicable Not Applicable Others to be disclosed necessarily or per the requirements of securities regulator □Applicable Not Applicable II. Changes of limited A shares □Applicable Not Applicable 2. Securities issuance and listing □Applicable Not Applicable

3. Shareholders and shareholding status

There was no change of actual controlling parties during the reporting period.

2. B shares 344,000,000 39.85% 344,000,000 39.85% III. Total 863,214,000 100.00% 863,214,000 100.00% Causes of shareholding changes □Applicable Not Applicable Approval of changes of shareholding structure □Applicable Not Applicable Shares Transfer □Applicable Not Applicable Progress in the implementation of share repurchase □Applicable Not Applicable The implementation progress of reducing the buyback shares by means of centralized bidding □Applicable Not Applicable Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’ equity attributable to the equity holders of the Company, generated from shares transfer □Applicable Not Applicable

6. Preferred Shares

□Applicable Not Applicable

JMC had no preferred shares in the reporting period.

Chapter VII Bond related Information

□Applicable Not Applicable

JIANGLING MOTORS CORPORATION, LTD.

FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2026

[English translation for reference only. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.]

JIANGLING MOTORS CORPORATION, LTD. CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 30 June 2026

(All amounts in RMB Yuan unless otherwise stated)

\* Unaudited financial indexes

(All amounts in RMB Yuan unless otherwise stated)

\* Unaudited financial indexes Legal representative: Qiu Tiangao (All amounts in RMB Yuan unless otherwise stated)

\* Unaudited financial indexes

Legal representative: Qiu Tiangao

CFO: Weihua Li

JIANGLING MOTORS CORPORATION, LTD. CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026

(All amounts in RMB Yuan unless otherwise stated)

大 Unaudited financial indexes

Legal representative: Qiu Tiangao

\* Unaudited financial indexes

\* Unaudited financial indexes

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

1 General information

Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi Motors Manufacturing Factory on 16 June 1992. The address of its headquarters is Nanchang City, Jiangxi Province of the People’s Republic of China (“the PRC”).

On 23 July 1993, with the approval of the China Securities Regulatory Commission (hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi [1993] No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1 December 1993, issuing 494,000,000 shares in total. On 8 April 1994, a total of 25,214,000 shares were distributed for the 1993 dividend distribution programme with the approval of the shareholders’ meeting and Jiangxi Securities Management Leading Group (Gan Securities [1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi [1995] No. 144) and the Shenzhen Securities Management Office (Shenzhen Zheng Ban Fu [1995] No. 92), the Company issued 174,000,000 ordinary shares (“B shares”). In 1998, with the approval of CSRC (Zheng Jian Guo Zi [1998] No. 19), the Company issued additional 170,000,000 B shares.

According to the resolution of the shareholders’ meeting regarding the split share structure reform on 11 January 2006, the Company implemented the Scheme on Split Share Structure Reform on 13 February 2006. After the implementation, the Company’s total paidin capital remains the same. Related details are disclosed in Note 5(36).

As at 30 June 2026, the Company’s paid-in capital totalled RMB863,214,000, with par value of RMB1 per share.

The actual principal business scope of the Company and its subsidiaries (hereinafter “the Group”) includes production and sales of automobile assemblies such as automobiles, special (modified) vehicles, engines and chassis and other automobile parts, and provision of related after-sales services; import and export of automobiles and parts; dealership of used cars; provision of enterprise management and consulting services related to production, sales and rent of automobiles.

These financial statements were authorised for issue by the Company's Board of Directors on 21 August 2026.

2 Basis of preparation of the financial statement

(1) Basis of preparation

The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, specific accounting standards and relevant regulations and in subsequent periods (hereinafter collectively referred to as “the Accounting Standards for Business Enterprises” or “CASs”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by CSRC.

(2) Going concern

These financial statements have been prepared on a going concern basis.

JIANGLING MOTORS CORPORATION, LTD.

3 Summary of significant accounting policies and accounting estimates

The Group determines specific accounting policies and estimates based on the features of its production and operation, which mainly comprise the measurement of expected credit losses on receivables, valuation of inventories, Inventory write-down provision, depreciation of fixed assets and amortisation of intangible assets and right-of-use assets, criteria for capitalisation of development expenditures, impairment of long-term assets, recognition and measurement of revenue, and government grants etc.

(1) Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements of the Company for six months ended 30 June 2026 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the consolidated and company’s financial position of the Company as at 30 June 2026 and their financial performance, cash flows and other information for the period then ended.

(2) Accounting year

The Group's accounting year is a calendar year, i.e. from 1 January to 31 December each year.

(3) Functional currency

The base currency of the Company and its subsidiaries and the currency used in the preparation of these financial statements are RMB. Unless otherwise specified, they are expressed in RMB.

(4) The determination method and selection basis of the material standard followed by financial statement disclosure

Significant recovery or reversal of allowance for doubtful accounts receivable

Significant prepayments with an aging of over 1 year

Significant construction in progress

Significant non-wholly owned subsidiaries

Significant associated companies

The amount of a single recovery or reversal exceeds 1% of the total amount of various receivables and is greater than RMB15 million.

The amount of a single prepayment exceeds 10% of the total amount of various prepayments and is greater than RMB15 million.

The budget of a single project exceeds RMB 50 million.

The net assets of the subsidiary account for more than 5% of the group’s net assets, or its net profit impact reaches 10% or more of the group’s consolidated net profit.

The carrying value of long-term equity investment in a single investee exceeds 5% of the group’s net assets or is greater than RMB100 million, or the investment income/loss under the equity method accounts for 10% or more of the group’s consolidated net profit.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Summary of significant accounting policies and accounting estimates (Cont’d)

(5) Preparation of consolidated financial statements

The scope of consolidation of the consolidated financial statements is determined on a control basis, including the financial statements of the Company and all of its subsidiaries. "Subsidiary" refers to the entity controlled by the Company (including the divisible part of the enterprise and the investee, as well as the structured entity controlled by the Company, etc.). An investor can control an investee if and only if the investor has the following three elements: the investor has authority over the investee; Variable returns for participation in the investee's related activities; Ability to use power over the investee to influence the amount of its return.

If the accounting policies or accounting periods adopted by the subsidiary are inconsistent with those adopted by the Company. the financial statements of the subsidiary shall be adjusted as necessary in accordance with the accounting policies and accounting periods of the Company when preparing the consolidated financial statements. The assets, liabilities, equity, revenues, expenses and cash flows arising from all transactions between companies within the Group are fully offset at the time of the consolidation.

If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders in the shareholders' equity at the beginning of the period, the balance shall still be offset against the minority shareholders' equity.

For subsidiaries acquired through a business combination not under common control, the operating results and cash flows of the acquiree are included in the consolidated financial statements from the date on which the Group acquires control until the termination of the Group's control over them. In preparing the consolidated financial statements, the financial statements of subsidiaries are adjusted on the basis of the fair value of the identifiable assets, liabilities and contingent liabilities determined at the date of acquisition.

For subsidiaries acquired through a business combination under the same control, the operating results and cash flows of the consolidated party are included in the consolidated financial statements from the beginning of the current period of consolidation. When compiling the comparative consolidated financial statements, the relevant items of the previous financial statements are adjusted to be deemed to have existed since the ultimate controller began to exercise control.

If changes in relevant facts and circumstances result in a change in one or more of the control elements, the Group will reassess whether to control the investee.

Without loss of control, a change in minority shareholders' interests is treated as an equity transaction.

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(6) Cash and cash equivalents

Cash comprises the Group’s cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash, subject to an insignificant risk of changes in value.

(7) Foreign currency translation

The Group translates foreign currency transactions into its functional currency.

At the time of initial recognition of a foreign currency transaction, the amount in the foreign currency is converted into the base currency of account using the spot exchange rate on the date of the transaction, but the capital invested by the investor in the foreign currency is converted at the spot exchange rate on the date of the transaction. At the balance sheet date, the spot exchange rate at the balance sheet date is used for foreign currency monetary items. The resulting differences in settlement and translation of monetary items shall be included in profit or loss for the current period, except for the differences arising from special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization, which shall be treated in accordance with the principle of capitalization of borrowing costs. Foreign currency non-monetary items measured at historical cost are still translated using the exchange rate used at the time of initial recognition, and the amount in the base currency of accounting remains unchanged. Foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on the date of fair value determination, and the resulting difference is recognized in profit or loss or other comprehensive income for the current period according to the nature of the non-monetary items.

Cash flows in foreign currencies are translated using the spot exchange rate on the date of the cash flows. The effect of exchange rate changes on cash is presented separately in the statement of cash flows as a reconciliation item.

(8) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of the instrument.

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(a) Recognition and derecognition of financial instruments

The Group recognises a financial asset or financial liability when it becomes a party to a contract for a financial instrument.

If the following conditions are met, the financial assets (or part of the financial assets, or part of a group of similar financial assets) shall be derecognized, that is, the previously recognized financial assets shall be transferred out of the balance sheet:

(1) Expiration of the right to receive cash flows from financial assets; (2) transferred the right to receive cash flows from financial assets or assumed an obligation under a "transfer agreement" to promptly pay the cash flows received in full to a third party; and substantially transfers substantially all of the risks and rewards of ownership of a financial asset, or, while substantially neither transferring nor retaining substantially all of the risks and rewards of ownership of a financial asset, but relinquishes control of that financial asset.

If the obligation for the financial liability has been fulfilled, cancelled or expired, the financial liability is derecognized. If an existing financial liability is replaced by another financial liability by the same creditor with substantially almost entirely different terms, or the terms of the existing liability are substantially all modified, such replacement or modification is treated as a derecognition of the original liability and recognition of a new liability, the difference in profit or loss for the current period.

The purchase and sale of financial assets in the conventional way is recognized and derecognized according to the accounting of the transaction date. The purchase or sale of financial assets in a conventional manner means the purchase or sale of financial assets in accordance with a contract that provides for the delivery of financial assets in accordance with a schedule normally determined by regulations or market practice. A trading day is the date on which the Group commits to buy or sell a financial asset.

(b) Classification and measurement of financial assets

At the time of initial recognition, the Group's financial assets are classified according to the Group's business model of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at amortized cost, investments in debt instruments measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss. All affected underlying financial assets will be reclassified if and only when the Group changes its business model for managing financial assets.

Financial assets are measured at fair value at the time of initial recognition, but if the accounts receivable or notes receivable arising from the sale of goods or the provision of services, etc., do not contain a material financing component or do not consider the financing component of no more than one year, the initial measurement shall be carried out according to the transaction price.

For financial assets measured at fair value through profit or loss, the relevant transaction costs are directly recognized in the current profit or loss, and the transaction costs related to other types of financial assets are included in the initial recognition amount.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(b) Classification and measurement of financial assets (Cont’d)

The subsequent measurement of a financial asset depends on its classification:

Investments in debt instruments measured at amortized cost

If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at amortized cost: the business model for managing the financial asset is to collect contractual cash flows as the goal; The contractual terms of the financial asset provide that the cash flows generated on a specific date are only payments of principal and interest based on the amount of principal not paid. Interest income is recognized using the effective interest rate method for such financial assets, and the gains or losses arising from their derecognition, modification or impairment are included in profit or loss for the current period.

Investments in debt instruments at fair value through other comprehensive income

A financial asset is classified as a financial asset measured at fair value through other comprehensive income if it meets the following conditions: the Group's business model for managing the financial asset is to collect both contractual cash flows and sell financial assets; The contractual terms of the financial asset provide that the cash flows generated on a specific date are only payments of principal and interest based on the amount of principal not paid. Interest income is recognized for such financial assets using the effective interest rate method. Except for interest income, impairment losses and foreign exchange differences, which are recognized as gains or losses for the current period, the remaining fair value changes are recognized as other comprehensive income. When a financial asset is derecognized, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in profit or loss for the current period.

Financial assets at fair value through profit or loss

The above-mentioned financial assets measured at amortized cost and financial assets other than those measured at fair value through other comprehensive income are classified as financial assets measured at fair value through profit or loss. For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are recognized in profit or loss for the current period.

(c) Classification and measurement of financial liabilities

At the time of initial recognition, the Group's financial liabilities are classified as follows: financial liabilities at fair value through profit or loss, and financial liabilities at amortized cost. For financial liabilities measured at fair value through profit or loss, the relevant transaction expenses are directly recognized in the current profit or loss, and the relevant transaction costs of the financial liabilities measured at amortized cost are included in their initial recognition amount.

The subsequent measurement of financial liabilities depends on their classification:

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(c) Classification and measurement of financial liabilities (Cont’d)

Financial liabilities at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss, including trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated at fair value through profit or loss at the time of initial recognition. Trading financial liabilities (including derivatives that are financial liabilities) are subsequently measured at fair value, and all changes in fair value are recognized in profit or loss for the current period, except in relation to hedge accounting. For financial liabilities designated as measured at fair value through profit or loss, subsequent measurement is carried out at fair value, and other fair value changes are included in profit or loss for the current period, except for the fair value changes caused by changes in the Group's own credit risk, which are included in other comprehensive income. If the inclusion of changes in fair value caused by changes in the Group's own credit risk into other comprehensive income would cause or magnify the accounting mismatch in profit or loss, the Group will include all changes in fair value (including the amount affected by changes in its own credit risk) in profit or loss for the current period.

Financial liabilities measured at amortized cost

For such financial liabilities, the effective interest rate method is used, and the subsequent measurement is carried out according to the amortized cost.

(d) Impairment of financial instruments

Methods for determining expected credit losses and accounting treatment methods

The Group conducts impairment treatment and recognizes loss provisions for financial assets measured at amortized cost, debt instrument investments measured at fair value with changes recognized in other comprehensive income, and lease receivables based on expected credit losses.

For receivables that do not contain significant financing components, the Group applies a simplified measurement method to measure the loss provision based on the expected credit loss amount equivalent to the entire duration of the receivable.

For lease receivables and receivables that contain significant financing components, the Group has chosen to apply a simplified measurement approach, measuring the loss provision based on the expected credit loss amount equivalent to the entire duration of the receivable.

Apart from the aforementioned simplified measurement methods for financial assets, the Group assesses at each reporting date whether the credit risk has significantly increased since initial recognition. If the credit risk has not significantly increased since initial recognition, it is classified as Stage 1, and the Group measures the loss allowance at an amount equal to the expected credit losses over the next 12 months, calculating interest income based on the carrying amount and the effective interest rate. If the credit risk has significantly increased since initial recognition but no credit impairment has occurred, it is classified as Stage 2, and the Group measures the loss allowance at an amount equal to the expected credit losses over the entire lifetime, calculating interest income based on the carrying amount and the effective interest rate. If credit impairment occurs after initial recognition, it is classified as Stage 3, and the Group measures the loss allowance at an amount equal to the expected credit losses over the entire lifetime, calculating interest income based on amortized cost and the effective interest rate. For financial instruments that have only low credit risk at the reporting date, the Group assumes that the credit risk has not significantly increased since initial recognition.

3 Summary of significant accounting policies and accounting estimates (Cont’d)Summary of significant ac ounting policies and ac ounting estimates (Cont’d)

(8) Financial instruments (Cont’d)Financial instruments (Cont’d)

(d) Impairment of financial instruments (Cont’d)Impairment of inancial instruments (Cont’d)

The Group's methodology for measuring expected credit losses on financial instruments reflects factors such as the weighted average amount of unbiased probabilities determined by evaluating a range of possible outcomes, the time value of money, and reasonable and evidence-based information on past events, current conditions and projections of future economic conditions that are available at the balance sheet date without unnecessary additional cost or effort.

The credit risk characteristics of various types of financial assets for which the expected credit losses are calculated separately are significantly different from those of other financial assets in this category. When the information of expected credit losses cannot be assessed at a reasonable cost for a sin le financial asset, the Group divides the receivables into several portfolios based on the credit risk characteristics, calculates the expected credit losses on the basis of the portfolio, and determines the basis and accrual method of the portfolio as follows:

When the Group no longer reasonably expects to be able to recover all or part of the contractual cash flows of financial assets, the Group directly writes down the carrying balance of such financial assets.

(e) Financial Instrument Offset

If the following conditions are met at the same time, the financial assets and financial liabilities are presented in the balance sheet as net amounts after offsetting each other: they have the legal right to offset the recognized amount, and such legal right is currently enforceable; The plan is to settle on a net basis, or at the same time to realise the financial asset and settle the financial liability.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(f) Derivative financial instruments

The Group uses derivative financial instruments. Derivative financial instruments are initially measured at the fair value on the date of the signing of the derivative transaction contract, and subsequently measured at their fair value. A derivative financial instrument with a positive fair value is recognized as an asset, and a negative fair value is recognized as a liability.

Except in relation to hedge accounting, gains or losses arising from changes in the fair value of derivatives are directly recognized in profit or loss for the current period.

(g) Transfer of financial assets

If the Group has transferred almost all of the risks and rewards in the ownership of financial assets to the transferee, the recognition of such financial assets shall be terminated; Where almost all of the risks and rewards in the ownership of financial assets are retained, the recognition of the financial assets shall not be terminated.

If the Group neither transfers nor retains almost all of the risks and rewards in the ownership of the financial assets, it shall be dealt with in the following cases: if it has relinquished control of the financial assets, the financial assets shall be terminated and the assets and liabilities arising therefrom shall be recognized; If the financial asset is not relinquished, the relevant financial asset shall be recognized according to the extent to which it continues to be involved in the transferred financial asset, and the relevant liabilities shall be recognized accordingly.

(9) Inventories

Inventory includes raw materials, work-in-progress, finished products, low-value consumables, materials in transit and consignment materials.

Inventory is initially measured at cost. Inventory costs include procurement costs, processing costs, and other costs. Inventories are issued, and their actual cost is determined using the weighted average method. Low-value consumables are amortized using the one-time resale method.

The inventory system adopts a perpetual inventory system.

At the balance sheet date, inventories are measured at the lower of cost and net realizable value, and if the cost is higher than the net realizable value, a provision for inventory decline is made and included in profit or loss for the current period. Net realizable value is the estimated selling price of inventory in the ordinary course of business, less the estimated costs to be incurred at completion, estimated selling expenses, and related taxes. Inventories related to product lines manufactured and sold in the same region, with the same or similar end use or purpose, and difficult to measure separately from other items, are provided for inventory decline on a consolidated basis.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Summary of significant accounting policies and accounting estimates (Cont’d)

(10) Long-term equity investments

Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its associates.

Long-term equity investments are initially measured at the initial investment cost at the time of acquisition. For a long-term equity investment obtained through a business combination under the same control, the initial investment cost shall be the share of the carrying amount of the owner's equity of the merged party in the consolidated financial statements of the ultimate controlling party on the date of consolidation; The difference between the initial investment cost and the carrying amount of the consolidation consideration shall be adjusted to the capital reserve (if it is insufficient to offset the retained earnings). For longterm equity investments obtained through a business combination not under common control, the initial investment cost shall be the cost of the merger (if the business combination of enterprises not under the same control is realized step by step through multiple transactions, the sum of the carrying amount of the equity investment of the acquiree held before the purchase date and the cost of the new investment on the purchase date shall be the initial investment cost). For long-term equity investments obtained by means other than those formed by business combinations, the initial investment costs shall be determined in accordance with the following methods: if they are obtained by paying cash, the initial investment costs shall be the purchase price actually paid and the expenses, taxes and other necessary expenses directly related to the acquisition of the long-term equity investment; If the issuance of equity securities is obtained, the fair value of the equity securities issued shall be used as the initial investment cost.

The long-term equity investments that the Company is able to control the investee are accounted for using the cost method in the Company's individual financial statements. Control refers to having power over the investee, enjoying variable returns by participating in the relevant activities of the investee, and having the ability to use the power over the investee to influence the amount of returns.

Summary of significant accounting policies and accounting estimates (Cont’d)

(¹⁰) Long-term equity investments (Cont’d)

When the cost method is used, long-term equity investments are valued at the initial investment cost. If the investment is increased or recovered, the cost of long-term equity investment shall be adjusted. The cash dividends or profits declared by the investee are recognized as investment income for the current period.

If the Group has a significant influence on the investee, the long-term equity investment is accounted for by the equity method. Significant influence refers to having the power to participate in decision-making on the financial and operational policies of the investee, but not being able to control or jointly control the formulation of these policies with other parties.

When the equity method is adopted, if the initial investment cost of a long-term equity investment is greater than the fair value share of the investee's identifiable net assets at the time of investment, it shall be included in the initial investment cost of the long-term equity investment; If the initial investment cost of a long-term equity investment is less than the fair value share of the investee's identifiable net assets at the time of investment, the difference shall be included in the profit or loss for the current period, and the cost of the long-term equity investment shall be adjusted at the same time.

When the equity method is adopted, after the long-term equity investment is obtained, the investment profit and loss and other comprehensive income shall be recognized separately and the book value of the long-term equity investment shall be adjusted according to the share of the net profit or loss and other comprehensive income realized by the investee that should be enjoyed or shared. When recognizing the share of the investee's net profit or loss, the investee's net profit shall be recognized after adjustment based on the fair value of the investee's identifiable assets at the time of acquisition of the investment, in accordance with the Group's accounting policies and accounting periods, and offsetting the share attributable to the investor in proportion to the internal transaction gains and losses incurred with associates (except that if the internal transaction loss is an asset impairment loss, it shall be recognized in full), and the net profit of the investee shall be recognized after adjustment, except that the assets invested or sold constitute business. The carrying amount of the longterm equity investment shall be reduced accordingly based on the profits or cash dividends declared by the investee. The Group recognises that the net loss incurred by the investee is limited to the carrying amount of the long-term equity investment and other long-term equity that substantially constitutes a net investment in the investee to be written down to zero, unless the Group has the obligation to bear additional losses. For other changes in shareholders' equity of the investee other than net profit or loss, other comprehensive income and profit distribution, the book value of long-term equity investment shall be adjusted and included in shareholders' equity.

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(11) Fixed assets

Fixed assets are recognised only when the economic benefits associated with them are likely to flow into the Group and their costs can be reliably measured. Subsequent expenses related to fixed assets that meet the recognition conditions shall be included in the cost of fixed assets, and the book value of the replaced part shall be derecognized; Otherwise, it will be included in the current profit or loss or the cost of related assets according to the beneficiary object when it occurs.

Fixed assets are initially measured at cost. The cost of acquiring a fixed asset includes the purchase price, relevant taxes, and other expenses directly attributable to the asset incurred before the fixed asset reaches its intended useable state.

The depreciation of fixed assets is calculated using the average life method, and the useful life, estimated net residual value rate and annual depreciation rate of various types of fixed assets are as follows:

The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed and adjusted as appropriate at each year-end.

(12) Construction in progress

Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the construction in progress ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation is charged starting from the following month. The carrying amount of construction in pro ress is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 3(15)).

The criteria for transferring construction in progress to fixed assets when they reach their intended usable state are as follows:

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Summary of significant accounting policies and accounting estimates (Cont’d)

(13) Borrowing costs

The borrowin costs that can be directly attributable to the acquisition, construction or production of assets that meet the conditions for capitalization shall be capitalized, and other borrowing costs shall be included in the profit or loss for the current period.

Borrowing costs are capitalized when capital expenditures and borrowing costs have been incurred and the acquisition, construction or production activities necessary to bring the asset to its intended usable or marketable condition have commenced.

When the acquisition, construction or production of assets eligible for capitalization reaches the intended usable or saleable state, the borrowing costs shall cease to be capitalized. Borrowing costs incurred thereafter are included in profit or loss for the current period.

During the capitalization period, the amount of interest capitalization in each accounting period shall be determined according to the following method: the amount of special borrowings shall be determined by deducting the interest income or investment income of temporary deposits actually incurred in the current period; The general borrowings occupied shall be calculated and determined on the basis of the weighted average of the accumulated asset expenditures exceeding the portion of special borrowings multiplied by the weighted average real interest rate of the general borrowings occupied.

In the process of acquisition, construction or production of assets eligible for capitalization, if there is an abnormal interruption other than the procedures necessary to reach the intended usable or saleable state, and the interruption period exceeds 3 consecutive months, the capitalization of borrowing costs shall be suspended. Borrowing costs incurred during the interruption period are recognized as expenses and are included in profit or loss for the current period until the acquisition or construction of assets or production activities resume.

(14) Intangible assets

(a) Useful life of intangible assets

Intangible assets are amortized using the straight-line method over their useful lives, and their useful lives are as follows:

Basis for determination

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(14) Intangible assets (Cont’d)

(b) Research and development

The Group's R&D expenditure mainly includes the materials used by the Group in carrying out R&D activities, the remuneration of employees in the R&D department, the depreciation and amortization of assets such as equipment and software used in R&D, R&D design expenses and R&D testing.

The expenses in the planned investigation, evaluation and selection stages for the study of the production process of automobile-related products are the expenses in the research stage and are included in the profit or loss for the current period when incurred; Before large-scale production, the expenditure in the design and testing stages related to the final application of the production process of automobile-related products is the expenditure in the development stage, and if the following conditions are met, it shall be capitalized:

The development of the production process of automobile-related products has been fully demonstrated by the technical team;

The management has the intention to complete the development, use or sale of the production process of automotive-related products;

The research and analysis of the preliminary market research shows that the products produced by the production process of automobile-related products have the ability to be marketed;

Sufficient technical and financial support for the development of production processes for automotive-related products and subsequent large-scale production; and

Expenditures on the development of production processes for automotive-related products can be reliably aggregated.

Expenses in the development stage that do not meet the above conditions shall be included in the profit or loss for the current period when incurred. Development expenditures that have been recognized in profit or loss in prior periods are not recognized as assets in subsequent periods. Expenditures incurred in the development phase that have been capitalized are shown on the balance sheet as development expenditures and are converted into intangible assets from the date on which the project reaches its intended use.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Summary of significant accounting policies and accounting estimates (Cont’d)

(15) Impairment of assets

The impairment of assets other than inventories, deferred income tax and financial assets shall be determined according to the following methods: whether there are signs of possible impairment of assets at the balance sheet date, and if there are signs of impairment, the Group will estimate the recoverable amount and conduct impairment tests; Impairment tests shall be carried out at least at the end of each year for goodwill formed as a result of business combinations, intangible assets with indefinite useful lives and intangible assets that have not yet reached a usable state, regardless of whether there is any indication of impairment.

The recoverable amount is determined based on the higher of the fair value of the asset less disposal costs and the present value of the asset's projected future cash flows. The Group estimates its recoverable amount on a single asset basis; Where it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be determined on the basis of the asset group to which the asset belongs. The determination of the asset group is based on whether the main cash inflow generated by the asset group is independent of other assets or the cash inflow of the asset group.

When the recoverable amount of an asset or asset group is lower than its carrying amount, the Group writes down its carrying amount to the recoverable amount, and the written down amount is included in the profit or loss for the current period, and the corresponding asset impairment provision is made.

For the impairment test of goodwill, the carrying amount of goodwill is allocated to the relevant asset group or combination of asset groups in a reasonable manner from the date of purchase. The relevant asset group or combination of asset groups is the asset group or combination of asset groups that can benefit from the synergies of the business combination, and is not larger than the operating segment determined by the Group.

Compare the carrying amount and recoverable amount of the asset group or asset group combination containing goodwill, if the recoverable amount is lower than the book value, the impairment loss amount shall first be offset against the carrying amount of the goodwill allocated to the asset group or asset group combination, and then the carrying amount of other assets shall be offset proportionally according to the proportion of the carrying amount of other assets in the asset group or asset group portfolio except goodwill.

Once the above-mentioned asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Summary of significant accounting policies and accounting estimates (Cont’d)

(16) Employee compensation

Employee remuneration refers to various forms of remuneration or compensation given by the Group for the services provided by employees or for the termination of employment relations, including short-term remuneration, post-employment benefits and severance benefits.

(a) Short-term compensation

Short-term remuneration includes wages, bonuses, allowances and subsidies, employee welfare expenses, medical insurance premiums, work-related injury insurance premiums, housing provident fund, trade union and education funds, short-term paid absences, etc. During the accounting period in which employees provide services, the Group recognises the actual short-term remuneration as a liability and includes it in the profit or loss for the current period or the cost of related assets. Among them, non-monetary benefits are measured at fair value.

(b) Post-employment benefits

The Group classifies post-employment benefit plans into defined contribution plans and defined benefit plans. A defined deposit and withdrawal plan is a post-employment benefit plan in which the Group is no longer obligated to make further payments after depositing a fixed fee into an independent fund; A defined benefit plan is a post-employment benefit plan in addition to a defined contribution plan. During the reporting period, the basic endowment insurance and unemployment insurance paid for employees were all part of the set deposit plan. Supplemental retirement benefits for employees are defined benefit plans.

Defined contribution plans

Basic pensions

The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resources and Social Security. Monthly payments of premiums on the basic pensions are calculated according to the bases and percentage prescribed by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(16) Employee compensation (Cont’d)

(ii) Defined benefit plans

The Group also provides employees with supplementary retirement benefits in addition to the insurance system prescribed by the State. Such supplementary retirement benefits belong to defined benefit plans. The defined benefit liabilities recognised on the balance sheet represent the present value of defined benefit obligations less the fair value of the plan assets. The defined benefit obligations are calculated annually by an independent actuary using projected unit credit method at the interest rate of treasury bonds with similar obligation term and currency. Service costs related to supplementary retirement benefits (including current service costs, historical service costs and settled gains or losses) and net interest are recognised in profit or loss for the current period or the cost of related assets, and changes arising from remeasurement of net liabilities or net assets of defined benefit plans are recognised in other comprehensive income.

(c) Termination benefits

The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss for the current period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that involves the payment of termination benefits.

Internal retirement benefits

The Group provides internal retirement benefits to employees who have received internal retirement arrangements. Internal retirement benefits refer to the wages paid and socia insurance premiums paid to employees who have not reached the retirement age prescribed by the state and who have voluntarily quit their jobs with the approval of the Group's management. The Group pays internal retirement benefits to employees from the date of commencement of the internal retirement arrangement until the employees reach the normal retirement age. For the internal retirement benefits, the Group will account for the retirement benefits by comparison, and when the conditions for the recognition of the retirement benefits are met, the wages and social insurance premiums to be paid by the employees during the period from the date of cessation of the employee's services to the normal retirement date will be recognized as liabilities and included in the profit or loss for the current period in a lump sum. Changes in actuarial assumptions for retirement benefits and differences caused by adjustments to benefit standards are recognized in profit or loss for the current period when they occur.

Severance benefits expected to be paid within one year from the balance sheet date are shown as remuneration payable to employees.

Summary of significant accounting policies and accounting estimates (Cont’d)

(17) Provisions

Provisions for product warranties, compensation to suppliers, etc. are recognised when the Group has a present obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably.

A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors on a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense.

The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.

The provisions expected to be settled within one year since the balance sheet date are classified as other current liabilities.

(18) Revenue

The Group sells automobiles and automobile parts to distributors or end customers. In addition, the Group also provides customers with auto maintenance and additional quality warranty services. The Group recognises revenue at the amount of the consideration that is entitled to be charged by the Group as expected when the customer obtains control over relevant goods or services.

Where two or more obli ations are included in a contract between the Group and the customers, at the beginning date of the contract, the Group allocates the transaction price to individual obligation in the relative proportion to the individual selling prices of products or services committed in each individual obligation. When the individual selling price is unobservable, the Group makes reasonable estimates on the individual selling price with comprehensive consideration to all available information, and by using market adjustment method, cost plus method, etc.

(a) Sale of automobiles and automobile parts to distributors and end customers

The Group sells automobiles and automobile parts to distributors and end customers. According to the contract, the delivery is completed after the products are delivered at the contracted delivery location and acceptance by both parties. The Group recognises the revenue at the timing of delivery completion.

The credit periods granted by the Group to distributors and end customers are generally within one year, which is consistent with the industry practice, and there is no significant financing component. The Group provides product warranties for automobiles and automobile parts as required by laws and regulations and recognises the corresponding provisions (Note 3(17)).

The Group provides distributors and end customers with sales discounts based on sales volume, and related revenue is recognised at contract consideration net of the discount amount estimated based on historical experience and using the expected value method.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(18) Revenue (Cont’d)

(b) Rendering of services

The Group provides customers with automobile transportation, automobile maintenance and additional quality warranty services, and the revenue is recognised based on the progress of service provision within a certain period. According to the nature of the service provided, the performance progress is determined in accordance with the value of the labour provided to the customer.

When the Group recognises revenue based on the stage of completion, the amount with unconditional collection right obtained by the Group is recognised as accounts receivable, and the rest is recognised as contract assets. Meanwhile, loss provision for accounts receivable is recognised on the basis of ECL (Note 3(8)). If the contract price received or receivable exceeds the amount for the completed service, the excess portion will be recognised as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis.

(19) Government grants

Government subsidies are recognized when the conditions attached to them can be met and can be received. If the government subsidy is a monetary asset, it shall be measured according to the amount received or receivable. If the government subsidy is a non-monetary asset, it shall be measured at fair value; If the fair value cannot be reliably obtained, it shall be measured according to the nominal amount.

If the government documents stipulate that it is used for the acquisition, construction or other formation of long-term assets, it shall be regarded as a government subsidy related to the assets; If the government documents are not clear, the judgment shall be made on the basis of the basic conditions that must be met to obtain the subsidy, and the basic condition of the formation of long-term assets through acquisition, construction or other means shall be regarded as the government subsidy related to the assets, and the other shall be regarded as the government subsidy related to the income.

If the government subsidy related to the income is used to compensate for the relevant costs, expenses or losses in subsequent periods, it shall be recognized as deferred income, and shall be included in the profit or loss for the current period or offset the relevant costs in the period in which the relevant costs, expenses or losses are recognized; If it is used to compensate for the relevant costs, expenses or losses that have been incurred, it shall be directly included in the profit or loss for the current period or offset the relevant costs.

Summary of significant accounting policies and accounting estimates (Cont’d)

(19) Government grants (Cont’d)

Asset-related government subsidies to offset the carrying amount of the underlying assets; or recognized as deferred income, which shall be included in profit or loss in instalments in a reasonable and systematic manner during the useful life of the relevant asset (except that the government subsidy measured according to the nominal amount shall be directly included in the profit or loss for the current period), and if the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the balance of the relevant deferred income that has not vet been distributed shall be transferred to the profit or loss of the current period of asset disposal.

If the finance department allocates the subsidized funds to the lending bank, and the lending bank provides loans to the Group at a preferential policy interest rate, the actual amount of the borrowed money received shall be used as the recorded value of the borrowing, and the relevant borrowing costs shall be calculated according to the principal of the loan and the preferential interest rate of the policy.

(20) Deferred income tax

The Group adopts the balance sheet obligation method to provide deferred income tax based on the temporary differences between the carrying amount of assets and liabilities at the balance sheet date and the tax base, as well as the difference between the carrying amount and the tax basis of items that are not recognized as assets and liabilities but whose tax basis can be determined in accordance with the provisions of the tax law.

Deferred tax liabilities are recognized for all kinds of taxable temporary differences, unless:

A taxable temporary difference arises in the following transactions: the initial recognition of goodwill, or the initial recognition of assets or liabilities arising in a single transaction that is not a business combination, the transaction occurs that does not affect neither the accounting profit nor the taxable income or deductible loss, and the assets and liabilities initially recognized do not result in the creation of an equal amount of taxable temporary differences and deductible temporary differences;

For taxable temporary differences related to investments in subsidiaries and associates, the timing of the reversal of the temporary difference is controllable and the temporary difference is likely not to be reversed in the foreseeable future.

For deductible temporary differences, deductible losses and tax credits that can be carried forward to future years, the Group recognises deferred tax assets to the extent that it is likely to obtain future taxable income to offset the deductible temporary differences, deductible losses and tax credits, unless:

A deductible temporary difference arises in a single transaction that is not a business combination, the transaction does not affect the accounting profit or taxable income or deductible loss at the time of the transaction, and the assets and liabilities initially recognized do not result in the creation of an equal amount of taxable temporary difference and a deductible temporary difference;

For deductible temporary differences related to investments in subsidiaries and associates, the temporary differences are likely to be reversed in the foreseeable future and taxable income to be used to offset the temporary differences is likely to be obtained in the future.

Summary of significant accounting policies and accounting estimates (Cont’d)

(20) Deferred income tax (Cont’d)

The Group's deferred tax assets and deferred tax liabilities are measured at the applicable tax rate during the period in which the assets are expected to be recovered or the liabilities are liquidated in accordance with the provisions of the tax law, and reflect the income tax impact of the expected recovery of assets or the settlement of liabilities at the balance sheet date.

At the balance sheet date, the Group reviews the carrying amount of deferred tax assets and writes down the carrying amount of deferred tax assets if it is likely that sufficient taxable income will not be available in future periods to offset the benefits of deferred tax assets. At the balance sheet date, the Group re-evaluates the unrecognised deferred tax assets to the extent that it is likely to obtain sufficient taxable income to be able to reverse all or part of the deferred tax assets.

Deferred tax assets and deferred tax liabilities are presented on a net basis when the following conditions are met: they have the legal right to settle current income tax assets and current income tax liabilities on a net basis; Deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection and administration department on the same taxable entity.

(21) Leases

At the commencement date of the contract, the Group assesses whether the contract is a lease or a included lease and if a party to the contract relinquishes the right to control the use of one or more identified assets for a certain period of time in exchange for consideration, the contract is a lease or a included lease.

(a) As the lessee

In addition to short-term leases and leases of low-value assets, the Group recognises rightof-use assets and lease liabilities for leases.

If the contract includes both lease and non-lease parts, the Group shall apportion the contract consideration according to the relative proportion of the individual prices of each part.

At the commencement date of the lease term, the Group recognises its right to use the leased asset during the lease term as a right-of-use asset, which is initially measured at cost. The cost of a right-of-use asset includes: the initial measurement amount of the lease liability; the amount of the lease payment paid on or before the start date of the lease term (less the amount in relation to the lease incentive received); Initial direct expenses incurred by the lessee; The costs that the lessee expects to incur in order to dismantle and remove the leased asset, restore the premises on which the leased asset is located, or restore the leased asset to the condition agreed in the terms of the lease. If the Group remeasures lease liabilities due to changes in lease payments, the carrying amount of right-of-use assets will be adjusted accordingly. Subsequently, the Group adopted the average life method to provide depreciation for right-of-use assets. If it can be reasonably determined that the ownership of the leased assets will be acquired at the end of the lease term, the Group shall accrue depreciation during the remaining useful life of the leased assets. If it is not reasonably certain that the ownership of the leased assets can be obtained at the end of the lease term, the Group shall accrue depreciation during the period between the lease term and the remaining useful life of the leased assets.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(21) Leases (Cont’d)

(a) As the lessee(Cont’d)

At the commencement date of the lease term, the Group recognises the present value of the outstanding lease payments as lease liabilities, excluding short-term leases and leases of low-value assets. Lease payments include fixed payments and substantial fixed payments net of lease incentives, variable lease payments depending on the index or ratio, expected payments based on the residual value of the guarantee, and the exercise price of the purchase option or the exercise of the termination option, provided that the Group reasonably determines that the option will be exercised or the lease term reflects that the Group will exercise the lease termination option. Variable lease payments that are not included in the measurement of lease liabilities are recognized in profit or loss for the current period when actually incurred, unless otherwise specified in the cost of the relevant assets. The Group remeasures lease liabilities based on the present value of the changed lease payments when there is a change in the amount of the real fixed payment, a change in the estimated amount payable for the residual value of the guarantee, a change in the index or ratio used to determine the amount of the lease payment, and a change in the evaluation result or actual exercise of the option to purchase, renew or terminate the option.

The Group recognises a lease with a lease term of not more than 12 months and without a purchase option as a short-term lease on the commencement date of the lease term; When a single leased asset is a brand new asset, a lease with a lower value is recognized as a lease of a low-value asset. The Group chooses not to recognise right-of-use assets and lease liabilities for short-term leases and leases of low-value assets. The cost of the relevant asset or current profit or loss is recognized on a straight-line basis for each period of the lease term.

(b) As the lessor

Leases that transfer substantially all of the risks and rewards associated with ownership of the leased assets at the lease commencement date are finance leases, and all other leases are operating leases.

The rental income from operating leases is recognized as profit or loss for the current period on a straight-line basis for each period of the lease term, and the variable lease payments that are not included in the lease receipts are recognized in the profit or loss for the current period when actually incurred. Initial direct expenses are capitalised and amortized over the lease term on the same basis as rental income recognition, and are included in profit or loss for the current period.

On the commencement date of the lease term, the Group recognized the financial lease receivables for the financial lease and terminated the recognition of the financial lease assets. When the Group initially measures the financial lease receivables, the net lease investment is used as the recorded value of the financial lease receivables. Net lease investment is the sum of the unsecured residual value and the present value of lease receipts not yet received at the start date of the lease term discounted at the interest rate embedded in the lease, including initial direct costs. The Group calculates and recognises interest income for each period of the lease term at a fixed periodic interest rate. Variable lease payments made by the Group that are not included in the measurement of net lease investments are recognized in profit or loss for the current period when they are actually incurred.

Summary of significant accounting policies and accounting estimates (Cont’d)

(22) Safety production fee

The safety production fee withdrawn in accordance with the regulations shall be included in the cost of the relevant product or the current profit or loss, and shall be included in the special reserve; When using, distinguish whether fixed assets are formed and deal with them separately: if it is an expense expenditure, it will directly offset the special reserves; If fixed assets are formed, the expenses incurred shall be collected, and the fixed assets shall be recognized when they reach the intended usable state, and the equivalent special reserves shall be written off and the equivalent accumulated depreciation shall be recognized.

(23) Fair value measurement

Assets and liabilities measured or disclosed at fair value in the financial statements are determined based on the lowest level of inputs that are material to the fair value measurement as a whole: Level 1 inputs, which are unadjusted quotes in active markets for the same assets or liabilities that can be obtained at the measurement date; Level 2 inputs, which are directly or indirectly observable inputs for related assets or liabilities other than Level 1 inputs; The third level of input value, the unobservable input value of the relevant asset or liability.

At each balance sheet date, the Group re-evaluates the assets and liabilities recognized in the financial statements at fair value on an ongoing basis to determine whether there is a transition between the levels of fair value measurement.

(24) Critical accounting estimates and judgements

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amounts and disclosures of income, expenses, assets and liabilities, as well as the disclosure of contingent liabilities at the balance sheet date. The results of these uncertainties in assumptions and estimates may result in significant adjustments to the carrying amounts of the assets or liabilities affected in the future.

(a) Critical judgements in applying the accounting policies

In applying the Group's accounting policies, management has made the following judgments that have a material impact on the amounts recognized in the financia statements:

Business model

The classification of financial assets at the time of initial recognition depends on the Group's business model for managing financial assets, and in determining the business model, the Group considers the manner in which the performance of financial assets is evaluated and reported to key management personnel, the risks affecting the performance of financial assets and how they are managed, and the manner in which relevant business managers are remunerated. In assessing whether the objective is to collect contractual cash flows, the Group needs to analyze and determine the reason, timing, frequency and value of the sale of financial assets before the maturity date.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Summary of significant accounting policies and accounting estimates (Cont’d)

(24) Critical accounting estimates and judgements (Cont’d)

(a) Critical judgements in applying the accounting policies(Cont’d)

Characteristics of contractual cash flows

The classification of financial assets at the time of initial recognition depends on the contractual cash flow characteristics of the financial assets, and it is necessary to determine whether the contractual cash flows are only the payment of principal and interest based on the outstanding principal, whether there is a significant difference compared with the benchmark cash flow when the time value of money is included in the assessment of the time value of money, and whether the fair value of the prepayment feature is very small in the case of financial assets containing prepayment features.

Judgment of a significant increase in credit risk and credit impairment that has occurred In distinguishing the different stages of financial instruments, the Group's judgment on the significant increase in credit risk and the credit impairment that has occurred is as follows:

The Group's main criteria for judging a significant increase in credit risk are that the number of overdue days exceeds 30 days, or there is a significant change in one or more of the following indicators: the debtor's business environment, internal and external credit ratings, significant changes in actual or expected operating results, and a significant decline in the value of collateral or the credit rating of the guarantor that will affect the probability of default.

The Group's main criteria for judging that credit impairment has occurred are that the number of overdue days exceeds 90 days (i.e., default has occurred), or one or more of the following conditions are met: the debtor has significant financial difficulties, undergoes other debt restructuring or is likely to go bankrupt.

(b) Uncertainty in the estimate

The following are key assumptions about the future at the balance sheet date and other key sources of uncertainty in the estimates that may result in significant adjustments to the carrying amounts of assets and liabilities in future periods.

Impairment of financial instruments

The Group uses an expected credit loss model to assess the impairment of financial instruments. and the application of the expected credit loss model reguires sianificant judgment and estimation, taking into account all reasonable and substantiated information, including forward-looking information. In making these judgments and estimates, the Group inferred the expected changes in the debtor's credit risk based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks and other factors. Different estimates may affect the provision for impairment, and the provision for impairment may not be equal to the actual amount of impairment losses in the future.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(24) Critical accounting estimates and judgements (Cont’d)

(b) Uncertainty in the estimate(Cont’d)

Impairment of non-current assets other than financial assets (other than goodwill) The Group determines whether there is any indication of possible impairment of non-current assets other than financial assets at the balance sheet date. For intangible assets with an indefinite useful life, in addition to the impairment test conducted annually, when there are signs of impairment, the impairment test is also conducted. Other non-current assets, other than financial assets, are tested for impairment when there are indications that their book value is not recoverable. Impairment occurs when the carrying amount of an asset or group of assets is higher than the recoverable amount, i.e., the higher of the fair value less disposal costs and the present value of the projected future cash flows. The fair value, net of disposal costs, is determined by reference to the agreed sale price or observable market price of a similar asset in an arm's length transaction, less incremental costs directly attributable to the disposal of the asset. When estimating the present value of future cash flows, management must estimate the projected future cash flows of the asset or group of assets and select an appropriate discount rate to determine the present value of future cash flows.

Development expenditures

When determining the amount to be capitalized, management must make assumptions regarding the estimated future cash flows of the asset, the applicable discount rate, and the expected benefit period.

Deferred tax assets

To the extent that there is likely to be sufficient taxable income to cover the deductible loss, deferred tax assets should be recognised for all unutilised deductible losses. This requires management to use a great deal of judgment to estimate the timing and amount of taxable income to be obtained in the future, combined with a tax planning strategy, to determine the amount of deferred tax assets to be recognized.

Warranty

For a portfolio of contracts with similar characteristics, the Group makes a reasonable estimate of the warranty rate based on historical warranty data, current warranty situation, and all relevant information such as product improvement and market changes. The estimated warranty rates may not be equal to the actual future warranty rates, and the Group has re-evaluated the warranty rates at least at each balance sheet date and determined the projected liabilities based on the re-assessed warranty rates.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

4 Taxation

(1) The main categories and rates of taxes applicable to the Group are set out below:

(2) Tax preference

According to the relevant regulations of the national high-tech certification and related preferential tax policies, the company has passed the certification of high-tech enterprises in 2024 and is valid for three years. The corporate income tax rate applicable to the Company in six months ended 30 June 2026 is 15% (the six months ended 30 June 2025: 15%).

As at 30 June 2026, except for the Company, the Company’s wholly-owned companies, including JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co., Ltd. (“JMCS”), Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), Guangzhou Fujiang New Energy Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at the rate of 25% (the six months ended 30 June 2025: 25%).

Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy for the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the Ministry of Finance and the State Taxation Administration, the Company, as an advanced manufacturing enterprise, from January 1, 2023 to December 31, 2027, the Company will add 5% of the deductible input tax for the current period to offset the VAT payable.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements

(1) Cash at bank and on hand

(a) As at 30 June 2026, the group's bank deposit with Jiangling Automobile Group Finance Co, Ltd. was RMB1,352,479,456. The Group's bank deposits placed with Jiangling Motor Group Finance Company Limited(“JMCF”) bear interest at the bank's annual interest rate of 0.85%-1.4% (31 December 2025: 0.85%-1.55%) on RMB deposits for the same period.

JMCF, a subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-banking financia institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment Co., Ltd. (“JIC”), a main shareholder of the Company.

(b) Other cash and cash equivalents of RMB26,196,044 (31 December 2025: 27,137,724) were the frozen funds of the Group's litigation.

(2) Financial assets held for trading

(3) Accounts receivable

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

(3) Accounts receivable (Cont’d)

As at 30 June 2026, accounts receivable with individually significant amounts and aged over three years were analyzed as follows:

(b) As at 30 June 2026, the top five accounts receivable ranked by the balances of the debtors are analysed as follows:

(c) Provision for bad debts

For accounts receivable, the Group measures the loss provision based on the lifetime ECL regardless of whether there is a significant financing component.

The provision for bad debts of accounts receivable was analysed by category as follows:

30 June 2026

5 Notes to the consolidated financial statements (Cont’d)

(3) Accounts receivable (Cont’d)

Provision for bad debts (Cont’d)

31 December 2025

Accounts receivable for which the provision for bad debts was provided on the individual basis were analysed follows:

As at 30 June 2026, the Group assessed the expected credit losses on the related accounts receivable. The Group considered a portion of the receivables cannot be collected, therefore, a provision for bad debt was made for those receivables. The related amount was RMB101,673,142 (31 December 2025: RMB103,231,811), of which RMB1,558,669 (the six months ended 30 June 2025: no impact on profit or loss for the current period) was reversed in profit or loss for the current period.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(3) Accounts receivable (Cont’d)

Provision for bad debts (Cont’d)

(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows:

Grouping - Domestic sales of general automobiles:

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(3) Accounts receivable (Cont’d)

(c) Provision for bad debts (Cont’d)

Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d):

Grouping - Export sales of general automobiles:

Grouping - Sales of new energy automobiles:

30 June 2026

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(3) Accounts receivable (Cont’d)

(c) Provision for bad debts (Cont’d)

(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d):

Grouping – Automobile parts:

(iii) The provision for bad debts was RMB782,360 this period. (d) There was no provision for bad debts actually written off during the period.

(e) As at 30 June 2026 and 31 December 2025, there were no accounts receivable pledged.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(4) Financing receivables

The Group considers the need for its daily fund management to discount and endorse a portion of bank acceptance bills, and the business model for managing these bills aims both at receiving contractual cash flows and at selling them; therefore, all bank acceptance bills of the Group are classified as financial assets measured at fair value with changes recognized in other comprehensive income. For the six months ended 30 June 2026 , the Group endorsed and discounted bank acceptance notes, and almost all risks and rewards of ownership have been transferred to other parties, accordingly, the carrying amounts of bank acceptance notes that were derecognised by the Group were RMB797,009,380 and RMB3,892,639,938(2026: RMB1,698,864,617 and RMB7,692,252,503) respectively, and the related losses on discount of RMB6,180 ( for the six months ended 30 June 2025 : RMB234,105) were included in investment income (Note 5(52)).

As at 30 June 2026 and 31 December 2025, as the credit risk characteristics of these bank acceptance notes were similar, no provision for impairment was made individually. In addition, the Group considered that its bank acceptance notes were not exposed to significant credit risk and the probability of default of these banks was very low.

As at 30 June 2026 and 31 December 2025, the Group had no pledged bank acceptance notes receivable presented in financing receivables.

As at 30 June 2026, the Group's bank acceptance notes had been endorsed or discounted but not yet matured were RMB4,534,675,768, which had been derecognised.

There was no significant write-offs of financing receivables for the Group as at 30 June 2026 ( the six months ended 30 June 2025 : Nil).

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(5) Advances to suppliers

(a) The aging of advances to suppliers is analysed as follows:

(b) As at 30 June 2026, the top five advances to suppliers by the balances of the debtors are analysed as follows:

The Group did not have any fund deposited at other parties under the centralised fund management and represented in other receivables.

(a) The aging of other receivables is analysed as follows:

5 Notes to the consolidated financial statements (Cont’d)

(6) Other receivables (Cont’d)

(b) Provision for losses and changes in book balance statements:

The provision for bad debts of other receivables is analysed by category as follows:

30 June 2026

31 December 2025

Stage 1

As at 30 June 2026 and 31 December 2025, the Group had no other receivables at Stage 2 and Stage 3. The analysis of other receivables at Stage 1 was stated below:

5 Notes to the consolidated financial statements (Cont’d)

(6) Other receivables (Cont’d)

(b) Provision for losses and changes in book balance statements (Cont’d):

As at 30 June 2026, the Group’s other receivables with provision for bad debts were analysed below:

As at 31 December 2025, the Group's other receivables with provision for bad debts on the grouping basis are analysed as follows:

(c) As at 30 June 2026, the Group reversed the provision for bad debts amounting to RMB69,155. The reversal in the current period is due to the actual receipt of other receivables corresponding to the provision for bad debts in the previous period.

(d) There was no provision for bad debts actually written off during the period.

(e) As at 30 June 2026, the top five other receivables by the balances of the debtors are listed as follows:

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(7) Inventories

(a) Inventories were summarised by category as follows:

(b) Provision for decline in the value of inventories was analysed as follows:

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

(7) Inventories (Cont’d)

(c) Provision for decline in the value of inventories was analysed as follows:

The Group uses whether the cost is higher than the net realizable value as the basis for the provision for inventory decline. Net realizable value is determined by the estimated selling price of the inventory, less the estimated costs to be incurred at completion, estimated contract performance costs and selling expenses, and related taxes. The reason for the reversal or resale of the provision for inventory decline in the current period is the increase in the net realizable value of the inventory for which the provision for inventory decline has been made in previous years or the sales realized in the current period.

(8) Other current assets

As at 30 June 2026, the Group made a provision for impairment of RMB9,791,000 for input tax that is expected to not be deductible or used in the future.

(9) Current portion of non-current assets

As at 30 June 2026, the Group's long-term receivables were formed by accounts receivable from instalment sales, and the payments will be gradually recovered from 2026 to 2030.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(11) Long-term equity investments

The Group disposed of its equity interest in insignificant associate Hanon Systems during the period. The investment is no longer accounted for as an associate starting from the disposal date, with gain or loss on disposal recorded in current-period investment income.

Related information of equity in associates is set forth in Note 6(2).

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(12) Fixed assets

(a) Fixed assets

As at 30 June 2026, depreciation charged to fixed assets amounted to RMB583,438,289 (the six months ended 30 June 2025: RMB552,829,786), of which the depreciation expenses charged in the cost of sales, selling and distribution expenses, general and administrative expenses and research and development expenses were RMB530,345,081, RMB1,360,355, RMB22,714,791 and RMB29,018,062 (the six months ended 30 June 2025: RMB492,673,591, RMB2,314,697, RMB26,170,440 and RMB31,671,058), respectively.

The costs of fixed assets transferred from construction in progress amounted to RMB300,878,191 (the six months ended 30 June 2025: RMB838,710,612).

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(12) Fixed assets(Cont’d)

(a) Fixed assets (Cont’d)

(i) Temporarily idle fixed assets

As at 30 June 2026, the fixed assets with a carrying amount of approximately RMB131,654,250 (a cost of RMB1,108,465,781) (31 December 2025: a carrying amount of approximately RMB137,144,685 and a cost of RMB1,253,368,096) were idle due to the termination of the equity transfer transaction of JMCH and the change of product process of the Group. The analysis was as follows:

(ii) Operating lease of fixed assets:

As of 30 June 2026, the Cost was RMB999,741,657, the accumulated depreciation was RMB227,857,297, the Impairment provision was RMB168,451,912 and the carrying amount at the end of the period was RMB603,432,448.

(ii) Fixed assets with pending certificates of ownership:

(b) Fixed assets pending for disposal

JIANGLING MOTORS CORPORATION, LTD.

(All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

(13) Construction in progress

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(¹³) Construction in progress (Cont’d)

(a) Movement of significant projects of construction in progress

(b) Provision for impairment of construction in progress

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(14) Right-of-use assets

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(15) Intangible assets

As at 30 June 2026, the intangible assets developed by the Group accounted for 61% (31 December 2025: 63%) of the carrying amount of intangible assets.

JIANGLING MOTORS CORPORATION, LTD.

5 Notes to the consolidated financial statements (Cont’d)

(16) Expenditure on research and development

The Group's total expenditure on research and development activities As at 30 June 2026 and 2025 is presented by nature as follows:

(a) The changes in the Group's development expenditures eligible for capitalisation As at 30 June 2026 is analysed as follows:

The capitalization of the vehicle project started when the product was ready and the R&D data was frozen, and it had passed the Group's technical review meeting. After the completion of the development of the project, it is expected to be ready for mass production of vehicle products with marketing capabilities, with a progress of approximately 60% as of 30 June 2026, and is expected to be completed within the second quarter 2027.

As at 30 June 2026, there was no impairment of the Group's development expenditure items (the six months ended 30 June 2025: nil).

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(17) Deferred tax assets and deferred tax liabilities

(a) Deferred tax assets before offsetting

(b) Deferred tax liabilities before offsetting

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(17) Deferred tax assets and deferred tax liabilities (Cont’d)

(c) Deductible temporary differences and deductible losses for which no deferred tax asset was recognised were analysed as follows:

(d) Deductible losses for which no deferred tax asset was recognised will be expired in following years:

(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting were as follows:

(18) Other non-current assets

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(¹⁹) Provision for asset impairment and losses

As at 31 December 2019, the Group had made full provision for impairment of goodwill.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(20) Short-term borrowings

As at 30 June 2026, the Group had no overdue short-term borrowings and the interest rates ranged from 0.75% to 0.87% (31 December 2025: 0.35% to 0.92%).

(21) Erivative financial liabilities

(23) Accounts payable

As at 30 June 2026, accounts payable with aging over one year amounted to RMB715,052,632 (31 December 2025: RMB717,410,426), which mainly represented payables for materials for which a settlement price had not yet been determined, and such payables had not been finally settled yet.

(24) Contract liabilities

JIANGLING MOTORS CORPORATION, LTD.

(All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(25) Employee benefits payable

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(25) Employee benefits payable (Cont’d)

(b) Defined contribution plans

(c) Defined benefit plans

(d) Termination benefits payable

(i) As at 30 June 2026, other termination benefits paid by the Group for termination of the employment relationship were RMB1,886,038 (the six months ended 30 June 2025: RMB2,458,544).

(26) Taxes payable

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(27) Other payables

As at 30 June 2026, other payables with aging over one year of RMB1,898,140,637 (31 December 2025: RMB1,601,148,088) mainly comprised payables for promotion, payables for research and development expenses and payables for construction projects. Such payables had not been finally settled yet in view of the continuing business transactions with distributors and service providers, and engineering projects and research and development projects that had not yet been accepted and completed.

(28) Current portion of non-current liabilities

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(30) Long-term borrowings

(a) As at 30 June 2026, the above guaranteed loans were long-term borrowings amounting to USD 98,226 guaranteed by JMCF (note 8(5)(c)), borrowed from Industrial and Commercial Bank of China (“ICBC”), Nanchang Ganjiang Sub-branch with interests paid every half year and the principal paid in instalments between 10 December 2007 and 27 October 2027.

(b) As at 30 June 2026, the Group had no overdue long-term borrowings at an interest rate of 1.5% (31 December 2025: 1.5%).

(a) As at 30 June 2026, the Group had no leases that were not included in lease liabilities but will result in potential future cash outflows.

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

(32) Provisions

Product warranties are expenses expected to be incurred during the warranty period from free after-sales services. product warranty and other services for the vehicles sold.

(33) Deferred income

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

The retirement and early-retirement benefits payable within one year are included in employee benefits payable (Note 5(25)(c), Note 5(25)(d)).

For retired and early-retired employees, the Group provides them with a certain amount of supplementary benefits during their retirement or early-retirement period. The amount of benefits depends on the employee’s position, length of service and salary at the time of retirement or early-retirement, and is adjusted in accordance with inflation rate and other factors. The Group’s obligations for supplementary retirement and early-retirement benefits as at the balance sheet date were calculated using projected unit credit method and were reviewed by an external independent actuary.

(35) Other non-current liabilities

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(³⁶) Share capital (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006, as at 30 June 2026, there were 750,840 shares currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted conditions.

5 Notes to the consolidated financial statements (Cont’d)

(³⁷) Capital surplus

In 2025. with the board's approval. the company repurchased 8,632.078 shares through a dedicated securities account via centralized bidding. The repurchased shares will be allocated to the employee stock ownership plan or equity incentive programs. If the company fails to utilize all repurchased shares within 36 months after completion, the unused shares will be canceled.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(³⁹) Other comprehensive income

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(⁴⁰) Special reserve

(⁴¹) Surplus reserve

In accordance with the Company Law of the People’s Republic of China, the Company’s Articles of Association and the resolution of the Board of Directors, the Company should appropriate 10% of net profit for the period to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulated to more than 50% of the registered capital. The statutory surplus reserve can be used to make up for the loss or increase the share capital upon approval from the appropriate authorities. As the accumulated appropriation to the statuary surplus reserve exceeded 50% of the registered capital, no appropriation was made in the current period (the six months ended 30 June 2025: Nil).

(42) Retained earnings

Six months ended 30 June

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(42) Retained earnings(Cont’d)

(a) On June 25, 2026, the Company's 2025 Annual General Meeting examined and approved the Company's 2025 Profit Distribution Proposal. Cash dividends will be distributed at RMB 0.55581 per share, amounting to RMB 474,985,178 in total, based on the total share capital as of the record date for the distribution, less the total number of shares held in the Company's special repurchase securities account.

(43) Revenue and cost of sales

(a) Revenue and cost of sales

(b) The breakdown of revenue

(c) The breakdown of cost of sales

As at 30 June 2026, the amount of revenue corresponding to the performance obligations that the Group had contracted but had not commenced or completed was RMB1,022,005,379, of which the Group expects that RMB204,378,689 and RMB306,613,231 will be recognised as revenue from the sales of automobiles and parts and revenue from the sales of automobile maintenance services respectively in 2026, RMB511,013,459 will be recognised as revenue from automobile maintenance services from 2027 to 2031(Note 5(24)).

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(⁴⁴) Taxes and surcharges

(⁴⁵) Selling and distribution expenses

(⁴⁶) General and administrative expenses

(⁴⁷) Research and development expenses

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(48) Financial expenses

(49) Asset impairment losses

(50) Credit impairment losses

(51) Other income

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

(52) Investment income

There is no significant restriction on the remittance of investment income of the Group.

(53) Gains on changes in fair value

(54) Gains on disposal of assets (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

(55) Non-operating income

(56) Non-operating expenses

(57) Income tax expenses

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026

(All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Notes to the consolidated financial statements (Cont’d)

(57) Income tax expenses (Cont’d)

The reconciliation from income tax calculated based on the applicable tax rates and total profit presented in the consolidated income statement to the income tax expenses is listed as follows:

(58) Earnings per share

(a) Basic earnings per share

Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company by the weighted average number of outstanding ordinary shares of the parent company:

(b) Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted weighted average number of outstanding ordinary shares of the Company. As there were no dilutive potential ordinary shares as at 30 June 2026 (the six months ended 30 June 2025: Nil), diluted earnings per share equalled to basic earnings per share.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(59) Notes to the cash flow statement

The Group does not present cash flows on a net basis, and the significant cash flow items are presented as follows:

(a) Cash received relating to other operating activities

(b) Cash paid relating to other operating activities

(c) Cash received relating to other investing activities

(d) Cash paid relating to other financing activities

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(60) Supplementary information to the cash flow statement

(a) Supplementary information to the cash flow statement

Reconciliation from net profit to cash flows from operating activities

Net increase in cash and cash equivalents

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(⁶⁰) Supplementary information to the cash flow statement (Cont’d)

(b) Changes in liabilities arising from financing activities

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(60) Supplementary information to the cash flow statement (Cont’d)

(c) Cash and cash equivalents

(i) As in Note 5(1), other cash and cash equivalents of RMB26,196,044 as at 30 June 2026(31 December 2025: RMB27,137,724) was not included in cash and cash equivalents.

(61) Foreign currency monetary items

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(62) Lease

(a) As a lessee

The leased assets leased by the Group include houses and buildings used in the course of operation, and the lease term of houses and buildings is usually 1-5 years.

Right-of-use assets, see note 5(14); For lease liabilities, see note 5(31).

(b) As a lessor

The Group leases out its premises, buildings and means of transport for lease terms ranging from 1 to 3 years to form an operating lease.

Operating leases

Gains and losses related to operating leases are presented as follows:

According to the lease contract with the lessee, the undiscounted minimum lease collection amount is as follows:

For fixed assets leased out of operation, see Note 5(12).

JIANGLING MOTORS CORPORATION, LTD.

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

Equity in other entities

(¹) Equity in subsidiaries

Structure of the Group

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

6 Equity in other entities (Cont’d)

(1) Equity in subsidiaries (Cont’d)

(a) Subsidiaries with significant minority interests

The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies, the proportion of minority interests in the Group’s consolidated shareholders’ equity, and the proportion of profit or loss attributable to minority shareholders in the Group’s consolidated net profit, as follows:

Key financial information of the above significant non-wholly owned subsidiaries is presented below.

30 June 2026

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

6 Equity in other entities (Cont’d)

(2) Equity in associates

(a) General information of significant associates

The Group determines the significant associates by taking into account factors such as whether the associates are listed companies, the proportion of their carrying amounts to the Group’s consolidated total assets, and the proportion of the investment income from long-term equity investments under equity method to the Group’s consolidated net profit, as set out below:

(b) Summarised financial information for significant associates

NOTES TO THE FINANCIAL STATEMENTS FOR SIX MONTHS ENDED 30 JUNE 2026 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only]

6 Equity in other entities (Cont’d)

(2) Equity in associates (Cont’d)

(b) Summarised financial information for significant associates (Cont’d)