Stock code: 200054 Stock Abbreviation: Jianshe Vehicle B Announcement No.: 2021-016

Summary of 2020 Annual Report of Chongqing Jianshe Vehicle System Co., Ltd

1. Important notes

The summary is abstract from full-text of annual report, for more details information , investors should found in the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed by CSRC.

Other directors attending the Meeting for annual report deliberation except for the followed:

The name of director who did not attend the meeting in person	Title for absent director	Reasons for absent	The name of director who was authorized
Yu Jiang	Director	Business trip	Zhou Yongqiang
Zhang Di	Director	Business trip	Dong Qihong

Non-standard auditor’s opinion

□ Applicable √Not applicable

Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share capital for the reporting period, which has been reviewed and approved at the board meeting

□ Applicable √Not applicable

The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the report period.

Plans for profit distribution on preference shares for the reporting period approved by the Board

□ Applicable √Not applicable

II.Company Information

1.Company Profile

Stock ID	Jianshe Vehicle B	Stock Code		200054
Stock Exchange Listed	Shenzhen Stock Exchange
Contact person and contact manner	Board secretary		Securities affairs Representative
Name	Zhang Hushan		Li Wenling
Address	No.1 Jianshe Road, Huaxi Industrial Zone, Ba’nan District, Chongqing		No.1 Jianshe Road, Huaxi Industrial Zone, Ba’nan District, Chongqing
Tel.	023-66295333		023-66295333
Fax.	023-66295333		023-66295333
Email.	cqjsmc@jianshe.com.cn		cqjsmc@jianshe.com.cn

2. Brief introduction to the main business or products in the reporting period

The company engages mainly in production and sales of the vehicle air compressor including the vane iron and aluminous compressor, piston swash-plate fixed discharge rate compressor, piston swash-plate variable discharge rate compressor and motor compressor (with the discharge rate from 18cc to 480cc), has been awarded “China Famous Brand”, “High-quality Product of French Technological Quality Surveillance Evaluation Commission” and “China Recommended Product for Entry into WTO”, etc. for products and has the strategical cooperative partners including the leading production and sales volume in terms of finished automobile such as PEUGEOT , Great Wall Motors ,Chanan Auto, Geely Auto and Dongfeng Nissan , etc.

3. Accounting and financial highlights

1.Accounting and financial highlights for the past three years

Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.

□Yes √No

In RMB

	2020	2019	Changed over last year（％）	2018
Operating revenue（Yuan）	740,851,845.25	791,487,434.18	-6.40%	971,804,000.23
Net profit attributable to the shareholders of the listed company （Yuan）	1,415,942.45	-121,128,719.93	-101.17%	10,543,247.05
Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（Yuan）	-44,041,022.22	-119,395,985.23	-63.11%	9,074,662.19
Net Cash flow generated by business operation（Yuan）	165,013,126.67	13,414,357.42	1,130.12%	162,824,513.55
Basic earning per share(Yuan/Share)	0.012	-1.0147	-101.18%	0.088
Diluted gains per share(Yuan/Share)	0.012	-1.0147	-101.18%	0.088
Net asset earning ratio（%）	0.82%	-52.05%	-101.58%	3.66%
	End of 2020	End of 2019	Changed over last year（％）	End of 2018
Gross assets（Yuan）	1,186,697,453.77	1,190,147,356.58	-0.29%	1,461,770,573.54
Net assets attributable to shareholders of the listed company （Yuan）	173,588,673.06	172,172,730.61	0.82%	293,301,450.54

2.Main Financial Index by Quarters

In RMB

	First quarter	Second quarter	Third quarter	Fourth quarter
Operating revenue	159,386,309.82	175,203,952.03	202,858,501.83	203,403,081.57
Net profit attributable to the shareholders of the listed company	-24,237,509.94	-10,457,910.38	40,472,240.13	-4,360,877.36
Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company	-24,329,373.91	-10,168,757.58	-2,059,817.75	-7,483,072.98
Net Cash flow generated by business operation	21,163,192.63	51,958,701.35	47,434,377.12	44,456,855.57

Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly report as well as semi-annual report index disclosed by the Company.

□ Yes √No

4. Share capital and shareholders

1. Numbers of the common shareholders and the preference shareholders with resumed voting rights as well as the shareholdings of the top 10 shareholders

In shares

Total number of common shareholder s at the end of the reporting period

7,441

Total shareholders at the end of the month from the date of disclosing the annual report

7,393

The total number of preferred shareholders voting rights restored at period-end

0

Total preferred shareholders at the end of the month from the date of disclosing the annual report

0

Shareholdings of top 10 shareholders
Shareholders	Nature of shareholder	Proportion of shares held(%)	Number of shares held at period -end	Amount of restricted shares held	Number of share pledged/frozen
					State of share	Amount
China Military Equipment Group Co., Ltd.	State-owned legal person	71.13%	84,906,250	84,906,250
Gu Zuocheng	Domestic natural person	1.89%	2,261,000	2,218,750
Anhui Hengsheng Investment Development Co., Ltd.	Domestic non-state-owned legal person	1.47%	1,750,000	1,750,000
Liu Dan	Domestic natural person	0.77%	918,251	0
Xu Yuanhui	Domestic natural person	0.65%	777,889	0
Chen Xinqiang	Domestic natural person	0.51%	612,400	0
CORE PACIFIC-YAMAICHI INTERNATIONAL (H.K.) LIMITED	Overseas legal person	0.44%	531,150	0
Zhang Meilan	Domestic natural person	0.43%	513,560	0
Feng Yonghui	Domestic natural person	0.42%	500,000	500,000
Li Jianping	Domestic natural person	0.36%	434,500	0
Explanation on associated relationship among the aforesaid shareholders		There isn’t any associated relationship between the sponsoring shareholder and the other shareholders among the top-10 list. None of them are regarded as ‘Acting in concert’ in accordance with ‘The rules of information disclosure on change of shareholding.’ Foreign shareholders are unknown for their condition of ‘Associated relationship’ and ‘Acting in concert’.
Explanation on shareholders participating in the margin trading business(if any )		Not applicable

(2)Total preference shareholders and the shares held by the Top 10 Preference shareholders

□ Applicable √ Not applicable

No such cases in the reporting period.

(3)Block diagram of the ownership and control relations between the Company and the actual controller

5. Corporation bonds

Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due but not folly cashed on the approval date of annual report

No

III. Discussion and Analysis of the Management

1. Business Operation summary in the reporting period

The Company's 2020 budget target is sales of 2 million units of automotive air-conditioning compressors and is to realize sales revenue of 770 million yuan. Affected by the new coronavirus epidemic, the Company actually sold 1.861 million auto air-conditioning compressors in 2020, a YOY decrease of 7.24%; realized revenue of 740 million yuan; the product gross profit margin was 13.21%, an increase of 3.60 percentage points from the previous year. It realized the operating profit of -37.59 million yuan, a decreased loss by 83.58 million yuan compared with the same period last year. Due to the acquisition of Pingshan Taikai's equity in the year, it realized the

non-operating income of 40.98 million yuan, and the Company realized a profit of 1,416,000 yuan.

2. Material change in principal activities during the reporting period

□ Yes √No

3. Products accounting for over 10% of revenue or profit from principal activities of the Company

√ Applicable □Not applicable

In RMB

Name	Operating income	Operating cost	Gross profit ratio%	Increase /decrease of operating income（％）	Increase /decrease of operating cost（％）	Increase /decrease of Gross profit ratio（％）
Auto and Motorcycle parts	731,571,361.31	-37,589,859.82	13.21%	-6.35%	268.98%	3.60%

4. Seasonal or cyclical operations requiring special attention

□ Yes √No

5. Material difference of revenue, operating costs or net profit attributable to holders of ordinary shares of the Company for the reporting period from the last reporting period

√ Applicable □Not applicable

The total profit for the year was 1,915,000 yuan, a decreased loss of 122.81 million yuan from the previous year, which was mainly because the gross profit margin increased by 3.60 percentage points YOY, the operating profit decreased by 83.58 million yuan compared with the same period of the previous year, and the income

realized by the acquisition of Pingshan Taikai's equity was 40.98 million yuan-which was included in the

Company's current non-operating income (non-recurring income items) , resulted in an increase in the Company's total profit for the current period.

6. Suspension in trading or delisting

□ Applicable √ Not applicable

7. Events relating to the financial report

(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the financial report of last year

□ Applicable √ Not applicable

No such cases in the Reporting Period.

(2) Reason for retrospective restatement to correct major accounting errors during the reporting period

□ Applicable √ Not applicable

No such cases in the Reporting Period.

(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report for the prior year

√ Applicable □Not applicable

In the year, after the Company acquired 50% equity of the Pingshan Taikai, the Company holds 100% of Pingshan Taikai equity, and Pingshan Taikai is included into the consolidated statement.