SAIC MOTOR : Annual Report 2023

SAIC MOTOR ANNUAL REPORT 2023

Company Code: 600104

Abbreviation of the Company: SAIC Motor

SAIC Motor Corporation Limited

Annual Report 2023

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SAIC MOTOR ANNUAL REPORT 2023

Important Note

1. Board of Directors (the "Board"), Board of Supervisors, directors, supervisors and senior management of the Company certify that this report does not contain any false or misleading statements or material omissions and are jointly and severally liable for the authenticity, accuracy and integrity of the content.
2. All directors of the Company attended Board meetings.
3. PricewaterhouseCoopers Zhong Tian LLP issued a standard and unqualified auditors' report to the Company.
4. Mr. Chen Hong, Chairman of the Board, Mr. Wei Yong, the chief financial officer, and Ms. Gu Xiao Qiong, head of Accounting Department, certify the authenticity, accuracy and integrity of the financial reports contained in the Annual Report of the current year.
5. Profit distribution plan or plan for converting reserve into share capital resolved by the Board for the reporting period
   On the basis of the total share capital of 11,575,299,445 shares minus 105,843,541 shares in the Company's special account for share repurchase as at the disclosure date of this report,, that is, 11,469,455,904 shares, the Company plans to distribute cash dividends of RMB 3.69 (inclusive of tax) per 10 shares, totalling RMB 4,232,229,228.58. No capital reserve was converted into share capital. If, during the period between the disclosure date of this report and the registration date of the equity allocation, the number of shares on the basis of which the Company is entitled to distribute profits changes due to situations such as share repurchase, the total amount of the profit distribution remains unchanged and the amount allocated per share is adjusted accordingly.
6. Risk statement of forward-looking description

√Applicable □N/A

Forward-looking description in this report, such as future plans and development strategies, does not constitute any substantive commitment of the Company to investors. Investors are hereby reminded of investment risks.

7. Does the situation exist where the controlling shareholders and other related parties occupy

the funds of the Company for non-operational use?

No

8. Does the situation exist where the external guarantee is provided which is not in compliance

with the required decision-making procedures?

No

9. Are over 1/2 of directors not able to ensure the authenticity, accuracy and integrity of the

Annual Report disclosed by the Company?

No

1. Significant risk alert
   There are no significant risks which have substantive effects on the Company's production and operation during the reporting period. The Company has described the possible risks that the Company may be exposed to in the process of production and operation in this report. Please refer to "Possible Risks" in Section III Management Discussion and Analysis.
2. Others

□Applicable √N/A

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	SAIC MOTOR ANNUAL REPORT 2023
	Contents
Section I	Definition	4
Section II	General Information and Major Financial Indicators of the Company	5
Section III	Management Discussion and Analysis	8
Section IV	Corporate Governance	37
Section V	Environmental and Social Responsibility	58
Section VI	Important Events	63
Section VII	Changes in Shares and Shareholders	77
Section VIII	Preferred Shares	81
Section IX	Bonds	81
Section X	Financial Statements	82

List of Documents Available for Inspection

Financial statements with signatures of legal representative, principal in charge of accounting and head of accounting department.

Original auditors' report with the seal and signatures of accounting firm and CPAs.

Announcements and documents disclosed during the reporting period.

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Section I Definition

1. Definition

In this report, unless the context otherwise indicated, the following terms are defined as below:

Definitions of frequently used diction

CSRC		Refers to	China Securities Regulatory Commission
SSE		Refers to	Shanghai Stock Exchange
Shanghai SASAC		Refers to	Shanghai State-owned Assets Supervision and
	Administration Commission
Company, the Company,	the Group,	Refers to	SAIC Motor Corporation Limited
SAIC Group, SAIC Motor
SAIC (Group)		Refers to	Shanghai Automotive Industry (Group) Co., Ltd.
SAIC Volkswagen		Refers to	SAIC Volkswagen Automotive Co., Ltd.
SAIC GM		Refers to	SAIC General Motors Co., Ltd.
SAIC Passenger Vehicle,	Passenger	Refers to	SAIC Motor Corporation Limited Passenger
Vehicle Branch		Vehicle Branch
SRIH		Refers to	SAIC	MOTOR	R&D INNOVATION
	HEADQUARTERS
SGMW		Refers to	SAIC GM Wuling Co., Ltd.
SAIC MAXUS		Refers to	SAIC MAXUS Vehicle Co., Ltd.
IM Motors		Refers to	IM Motors Co., Ltd.
Rising Auto		Refers to	Rising Auto Technology Co., Ltd.
Shanghai Sunwin		Refers to	Shanghai Sunwin Bus Co., Ltd.
SAIC HONGYAN		Refers to	SAIC HONGYAN Automobile Co., Ltd.
Nanjing Iveco		Refers to	Nanjing Iveco Automobile Co., Ltd.
SAIC Motor CP		Refers to	SAIC Motor CP Co., Ltd.
SAIC Indonesia, Wuling Indonesia	Refers to	SAIC-GM-Wuling Motor Indonesia
HASCO Motor, HASCO		Refers to	HASCO
SNAT		Refers to	Shanghai	New	Power	Automotive
	Technology Company Limited
SFC, SAIC SFC		Refers to	SAIC Finance Co., Ltd.
SAIC GMAC		Refers to	SAIC GMAC Automotive Finance Co., Ltd.
SAIC Financial Holding		Refers to	SAIC Group Financial Holding Management
	Co., Ltd.
Chexiang Technology		Refers to	Shanghai Chexiang Technology Industry Co.,
	Ltd.
Anji Logistics		Refers to	SAIC Anji Logistics Co.,Ltd
SAIC International		Refers to	SAIC International Trade Co., Ltd.
Z-one Tech		Refers to	Z-one Technology Co., Ltd.
SHPT		Refers to	Shanghai	Hydrogen	Propulsion	Technology
	Co., Ltd.
DIAS		Refers to	DIAS	Automotive Electronic Systems Co.,
	Ltd.
Fin Shine		Refers to	Shanghai Sail Cloud Technology Co., Ltd.

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Section II General Information and Major Financial Indicators of the

		Company
I	Information of the Company
Name of the Company in Chinese	上海汽车集团股份有限公司
Abbreviation of the Company in Chinese	上汽集团
Name of the Company in English	SAIC Motor Corporation Limited
Abbreviation of the Company in English	SAIC Motor
Legal representative of the Company	Mr.Chen Hong

1. Contacts

	Secretary of the Board	Securities affairs representative
Name	Mr.Chen Xun	Mr.Lu Xiaolong
Address	No. 489, Weihai Road, Jing'an District,	No. 489, Weihai Road, Jing'an District,
Shanghai, China	Shanghai, China
Telephone	[phone]	[phone]
Fax	[phone]	[phone]
E-mail	[e-mail]	[e-mail]

1. General information of the Company

Registered address	Room 509, No.1 Tower, No. 563 Songtao Road, Pilot Free
Trade Zone, Shanghai, China
Changes in registered address	No change during the reporting period
Office address	No. 489, Weihai Road, Jing'an District, Shanghai, China
Post code of office address	200041
Website	http://www.saicmotor.com
E-mail	[e-mail]

IV Information disclosure and where the information is available

Media and website for disclosure of the	Shanghai Securities News, China Securities Journal
Company's Annual Report	and Securities Times
CSRC website for disclosure of the	http://www.sse.com.cn
Company's Annual Report
Location where the Company's Annual	Office of the Board
Report is available

1. Profile of the Company's shares

Profile of the Company's shares

Class of shares	Stock exchange	Short name	Stock code	Former short
name
A shares	Shanghai Stock	SAIC Motor	600104	Shanghai
Exchange	Automotive

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VI Other relevant information

Information of the	Name	PricewaterhouseCoopers Zhong Tian LLP
accounting firm	Office address	42nd F, Qiantan Centre, No. 588, Dongyu Road,
engaged by the	Pudong New Area, Shanghai
Company (domestic)	Signing CPA	Zhuang Hao and Shen Zhe

VII Major accounting data and financial indicators in recent three years

(I) Major accounting data
				Unit: RMB
Major accounting data	2023	2022	Changes (%)	2021
Total revenue	744,705,132,922.20	744,062,883,284.04	0.09	779,845,786,393.56
Revenue	726,199,110,369.74	720,987,528,302.03	0.72	759,914,635,560.08
Net profit attributable to shareholders	14,106,165,142.98	16,117,549,650.39	-12.48	24,533,097,943.83
of listed companies
Net profit attributable to shareholders
of listed companies after deducting	10,044,669,854.90	8,991,524,863.70	11.71	18,575,001,265.06
non-recurring profit or loss
Net cash flows from operating	42,334,422,535.36	9,504,540,284.51	345.41	21,615,739,153.91
activities
	31 December 2023	31 December 2022	Changes (%)	31 December 2021
Net assets attributable to shareholders	286,318,745,625.95	279,233,525,947.44	2.54	273,773,675,300.63
of listed companies
Total assets	1,006,650,278,661.54	990,107,381,169.76	1.67	916,922,695,643.33

(II) Major financial indicators

Major financial indicators	2023	2022	Changes (%)	2021
Basic earnings per share (RMB/Share)	1.226	1.400	-12.43	2.120
Diluted earnings per share (RMB/Share)	Not applicable	1.400	Not applicable	Not applicable
Basic earnings per share after deducting non-recurring	0.873	0.781	11.78	1.605
profit or loss (RMB/Share)
Weighted average ROE (%)	4.98	5.84	Decreased by 0.86 pct	9.19
Weighted average ROE after deducting non-recurring profit	3.55	3.26	Increased by 0.29 pct	6.96
or loss (%)

Explanation on major accounting data and financial indicators at the end of the recent three reporting periods

√Applicable □N/A

Net cash flows from operating activities increased by 345.41% year-on-year, mainly due to the moderate adjustment of the loan scale by the Company's subsidiary, SFC, according to business needs.

VIII Differences in accounting data under China and foreign accounting standards

1. Differences in net profit and net assets attributable to shareholders of the listed companies where financial statements are disclosed in accordance with International Accounting Standards ("IAS") and China Accounting Standards ("CAS")

□Applicable √N/A

1. Differences in net profit and net assets attributable to shareholders of the listed companies where financial statements are disclosed in accordance with foreign accounting standards and
   CAS

□Applicable √N/A

1. Explanation on differences between China and foreign accounting standards □Applicable √N/A

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IX	Major quarterly financial data for the year 2023
					Unit: RMB
		Q1	Q2	Q3	Q4
		(Jan. to Mar.)	(Apr. to Jun.)	(Jul. to Sept.)	(Oct. to Dec.)
Total revenue	145,916,475,075.54	180,638,392,229.31	196,787,101,644.16	221,363,163,973.19
Revenue	140,657,396,527.85	175,752,150,394.77	191,560,461,797.26	218,229,101,649.86
Net profit attributable to
shareholders of listed	2,782,676,516.80	4,302,369,493.93	4,322,192,065.17	2,698,927,067.08
companies
Net profit attributable to
shareholders of listed
companies after	2,163,263,182.68	3,505,613,083.10	3,802,445,538.41	573,348,050.71
deducting non-recurring
profit or loss
Net cash flows from	-9,863,191,963.88	16,755,969,809.01	14,204,862,742.06	21,236,781,948.17
operating activities

Explanation on differences between above quarterly data and disclosed data in periodic reports □Applicable √N/A

1. Items and amounts of non-recurring profit or loss √Applicable □N/A

				Unit: RMB
Items of non-recurring profit or loss	2023	Note (if	2022	2021
applicable)
Gains or losses on the disposals of non-current assets,
including the written-off portion of the provision for	1,472,863,302.37		2,861,927,027.00	4,522,318,862.58
impairment of assets
Government grants recognized in profit or loss, other
than those that are closely related to the Company's
ordinary course of business, are in accordance with	4,050,408,635.29		3,659,334,808.82	4,032,306,772.41
national policies and regulations, are received in
accordance with established standards and have a
sustained impact on the Company's profit or loss.
Profit or loss arising from changes in fair value of
financial assets and financial liabilities held by non-
financial enterprises and from disposals of financial	46,310,347.47		-50,208,898.51	35,968,969.21
assets and financial liabilities, except for effective
hedging business related to the Company's ordinary
course of business
Income from investments in other equity instruments	7,989,798.56		8,479,952.60
Profit or loss on entrusted loans	22,238,945.89		22,724,343.34	24,606,304.16
Reversal of provision for impairment of receivables	25,611,883.02		31,340,053.18
tested for impairment on an individual basis
Income from the difference between the investment
costs of acquisition of subsidiaries, associates and joint			993,558,775.01	5,456,162.00
ventures and share in the net fair value of the
identifiable assets of the investee when investing
Profit or loss on debt restructuring			-751,177.33	1,695,113.00
Income from business combinations involving entities
not under common control that is achieved in stages				-1,711,806.78
and involves multiple transactions
Other non-operating income and expenses other than	-220,484,566.39		995,512,062.69	-105,364,740.28
the above
Less: Effect of income tax	580,163,559.94		639,137,781.42	781,094,388.83
Effect of minority interests (net of tax)	763,279,498.19		756,754,378.69	1,776,084,568.70
Total	4,061,495,288.08		7,126,024,786.69	5,958,096,678.77

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The Company shall explain about the recognition of non-recurring profit or loss that are not listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 Non-recurringProfit or Loss as non-recurring profit or loss with significant amounts and the recognition of non-recurring profit or loss listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 Non-recurringProfit or Loss as recurring profit or loss.

□Applicable √N/A

XI Items measured at fair value

√Applicable □N/A

				Unit: RMB
Items	Opening balance	Ending balance	Changes	Effect on profits of
2023
Financial assets held for trading	45,230,022,623.99	46,687,571,217.37	1,457,548,593.38	-183,408,132.39
Financing receivables	11,550,691,647.05	16,717,326,180.65	5,166,634,533.60
Other current assets - Interbank	26,138,075,534.51	47,847,818,204.10	21,709,742,669.59
deposits
Other debt investments	843,316,530.00	4,569,999,800.00	3,726,683,270.00
Investments in other equity	17,194,589,995.63	13,713,232,621.62	-3,481,357,374.01
instruments
Other non-current financial	16,624,603,978.18	22,775,688,309.19	6,151,084,331.01	1,157,170,576.70
assets
Financial liabilities held for	51,500,458.60	50,226,585.32	-1,273,873.28	-211,452.94
trading
Other non-current liabilities	100,000,000.00	100,000,000.00
Total	117,732,800,767.96	152,461,862,918.25	34,729,062,150.29	973,550,991.37

XII Others

□Applicable √N/A

Section III Management Discussion and Analysis

1. Discussion and Analysis of Operations

The year 2023 is the beginning year to implement guiding principles of the 20th CPC National Congress. It is also the year of economic recovery and development after the turnaround in the epidemic prevention and control. In the face of multiple challenges such as market downturn at the beginning of the year, unprecedented price competition and accelerated evolution of industry changes in the domestic vehicle market, the Company firmly kept the strategic direction of innovation and transformation，and actively grasped the pace of market recovery and structural growth opportunities. Specifically, with the formulation and implementation of the "Three-year Action Plan for the Development of NEVs" as the direction, the Company promoted the upgrading and development of self-owned brands the transformation of joint ventures, and the transformation of growth drivers continues to accelerate. During the reporting period, the Company's sales volume increased quarter by quarter, reaching 5.021 million vehicles for the year, remaining the first in China for 18 consecutive years;sales of self-owned brand vehicles reached 2.775 million, accounting for more than 55% of the Company's sales volume, an increase of 2.5 pct compared with 2022. Sales of new energy vehicles reached 1.123 million, an increase of 4.6% year on year, remaining a leading position in the global industry. Overseas sales of vehicles reached 1.208 million, an increase of 18.8% year on year, remaining the largest vehicle exporter in domestic for eight consecutive years. The Company's sales of new energy vehicles and overseas sales reached a new record high after achieving the "double million" in 2022.

1. Promote"Three-year Action Plan for the Development of NEVs" through gathering resources and accelerating implementation

Firstly, innovate the project management mechanism. The Company set up a command for "Three-year Action Plan for the Development of NEVs" to make quick decisions on major matters in the development of self-owned brand new energy vehicles. The Company also set up two major teams, namely IM Motors and SAIC Passenger Vehicle to strengthen collaboration with related enterprises and promote the industrialization of key technologies and the production of key vehicles with the "strong

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project" management mechanism. After the launch, IM Motors LS6 quickly jumped to the top of the monthly sales list of medium and large pure electric SUVs in China. In the 2023 China Hybrid Vehicle Extreme Challenge, the Roewe D7 won the double champion of "pure electric cruising range and fuel consumption" for a comprehensive range of 1,700 kilometers.

Secondly, create industry-leading technologies. The Company launched industry-leading technologies such as "quasi-900V" double silicon carbidemotor and high-performance"ultra-efficient hybrid DMH", and realized mass production and application. Phased development of full-stack 3.0 intelligent vehicle architecture, energy closed-loop technology, and the Vehicle Motion Control (VMC) was completed. IM Motors obtained the first batch of L3 self-driving vehicle tests licenses and declared the Intelligent Connected Vehicle Access Pilot Project issued by the Ministry of Industry and Information Technology of the People's Republic of China. Meanwhile, the Company continued to promote independent R&D upgrading and commercialization of technologies such as fuel cell, automatic driving and cloud platform.

Thirdly, expand the "new track" cooperation. The Company signed a Memorandum of Understanding with Audi to jointly develop various new intelligent electric vehicles for the Chinese market. The Company integrated the superior resources with GM, and established a new software and digital center in SAIC GM. The Company also set up a joint venture with Qingtao Energy to accelerate the technological R&D and industrialization of semi-solid and all-solid batteries. In addition, the Company continued to deepen the strategic cooperation with OPPO, Horizon Robotics and other enterprises in fields of "ecological domain" and chips with large computing capacity. The Company also established the "key laboratories" with Hunan University, Shanghai University and other institutions to carry out in- depth university-enterprise cooperation in the fields of advanced vehicle production technology and cyber security of intelligent connected vehicles.

2. Strive to achieve a better operation quality quarter by quarter through adjusting the structure and strengthening the resilience

Firstly, accelerate the development of new energy products. The sales of new products such as IM Motors LS6 and Roewe D7 increased rapidly after the launch and became hot sellers in the market segment. SAIC Volkswagen ID.3 adjusted the marketing strategy, achieving monthly sales of over 10,000 for 4 consecutive months and becoming the "best pure electric vehicle seller of joint ventures". SAIC GM launched the 430km range version of the Buick Velite6 series and the E5 Pioneer Edition to accelerate the brand influence in the new energy vehicle market. The monthly sales of SGMW Binguo and Xingguang have ranked among the top in the segment market, and the third-generation "Macaron" consolidated Wuling Hongguang MINI series' leading position in the global small and micro electric vehicle market. During the reporting period, the Company's sales of new energy passenger vehicles above RMB 150,000 accounted for 43.6%, representing an increase of 19.2 pct from 2022. The Company achieved not only a sequential increase in vehicle sales from quarter to quarter but also a steady year-on-year increase in operating income through optimizing the production and sales structure.

Secondly, accelerate the transformation to new media marketing. The Company actively grasped the trend of marketing change to promote the construction of content centers and the change of marketing organization, and increased cooperation with head Internet platforms, to accelerate the transformation of the marketing model. SAIC Volkswagen strengthened the brand exposure by means of co-branding with famous IPs and explored new practices of digital customer operation along the entire marketing chain. Accordingly, monthly sales of the Lavida family continued to exceed 30,000, and monthly sales of the Passat and the Tiguan recovered to 20,000, consolidating and strengthening the momentum of sales recovery. SGMW further promoted the strategy of "strengthening regional markets and refining the middle office" through data-driven measures, forming practical experience that can be replicated and promoted. Focusing on intelligent positioning, IM Motors created the brand recognition of "intelligent new category" and "driving control" brand awareness, with annual brand awareness increased by more than 30 pct.

Thirdly, accelerate expanding overseas markets. The Company firmly grasped the strategic opportunities in export and overseas markets to continuously deepen the construction of international business system.

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The overseas sales volume continued to maintain a leading position in the domestic industry. The Company's self-owned brands accounted for 92% of overseas sales, with the annual global sales of the MG brand exceeding 800,000, and the knock-out products such as ZS/AP/HS series continued to maintain rapid growth. Especially in the European market, the single-month delivery volume of MG brand has stabilized at more than 20,000, making Europe the Company's first "200,000 vehicles" overseas regional market. In addition, the MG brand has not only ranked among the top two in the pure electric vehicle market in the UK and Spain, but also among the top ten in all major global markets, with the main product, the MG4 EV, winning more than 30 prestigious overseas awards, such as the "Model of the Year in the UK, France, Germany, and Australia". In addition, the export of Company's MAXUS and other commercial vehicles for the year reached the new level of 100,000.

3. Consolidate the development foundations including the operational mechanism and governance system by strengthening supporting efforts and enhancing vitality

Firstly, improve the resilience of supply chain systems. The Company set up a task force to continuously promote the localization of the chip, and built a domestic chip vehicle verification platform, and the relevant models have completed the first round of winter and summer tests. In terms of transport capacity guarantee, ANJI Logistics formed the transport capacity of 32,800 spaces of 7 ro-ro vessels for foreign trade shipping, with the multimodal transport project honored as the "national demonstration project". Meanwhile, focusing on the new track of intelligent connected electric vehicles, the Company accelerated the improvement of the layout of the industrial chain and supply chain by means of strategic direct investment and market-oriented funds. The Company also promoted the linkage of "production, investment and research" in the fields of thermal management, silicon carbide, chip localization, forward-looking technology and cost reduction to deepen the integration of industry and finance and accelerate industrial transformation and upgrading.

Secondly, promote the revolution of market-oriented mechanism. The Company formulated and implemented the work programs of "Building a World-class Model Enterprise" and "Deepening and Improving the Reform of State-owned Enterprises". Meanwhile, the Company steadily pushed forward market-oriented financing projects such as IM Motors, UTOPILOT and Fin Shine. For eligible subsidiaries, the Company continued to implement the net profit incremental incentives, and explored the "military order" special assessment and marketing personnel special incentives to further stimulate the motivation and vitality of the workforce.

Thirdly, Strengthen the cultivation of young cadres. The Company selected young cadres to practice in innovative businesses and key projects, and recruited outstanding young talents to form a "special operation forces", injecting fresh blood to overseas front line. Moreover, the Company continued to facilitate the introduction of technical leaders and overseas high-level talents. In addition, the Company actively participated in the "Achieving Greatness Together" recruitment activities, and conducted joint training of engineering masters and doctors with Fudan University and Shanghai Jiao Tong University. Meanwhile, the Company provided better supporting services in talent apartments and settlement to solve the worries of talents.

Fourthly, enhance governance of listed companies in a continuous manner. During the reporting period, the Company revised the Articles of Association and basic management systems such as the Rules of Procedure for General Meeting of Shareholders, the Rules of Procedure for the Board of Directors, the Rules of Procedure for the Board of Supervisors, the Management Policy for the Raised Funds, and the Related Party Transaction Management Policy. The Company hired an external director to the Board of Directors, appointed three vice presidents to enrich the Company's operation team, and added the general counsel as the Company's senior management, which laid an institutional foundation and organizational guarantee to further enhance the governance level of listed companies. In accordance with the regulations on the necessary rotation of accounting firms, the Company completed the replacement of the external auditor. Adhering to the operation and compliance management in accordance with the law, the Company has established a relatively sound legal management organization and legal risk prevention and control system. The Company has also seriously fulfilled the information disclosure obligations of listed companies and was again listed in the "Class A Information Disclosure of Listed Companies" by the Shanghai Stock Exchange, with the Board of Directors being awarded the

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