Changchai Company, Limited Third Quarter Report 2017
CHANGCHAI COMPANY, LIMITED
THIRD QUARTER REPORT 2017
October 2017
1
Changchai Company, Limited Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as
well as the directors, supervisors and senior management of Changchai Company, Limited
(the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents
of this Report, and shall be jointly and severally liable for any false representation, misleading
statements or material omissions in this Report.
All the directors of the Company attended the board meeting for the review of this Report.
Shi Xinkun, head of the Company, Zhang Xin, accounting head for this Report, and Jiang He,
head of the accounting department (head of accounting) of the Company, hereby guarantee
that the financial statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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Changchai Company, Limited Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
September 30, 2017 December 31, 2016 Change
Total assets (RMB) 3,796,065,908.97 3,724,857,266.71 1.91%
Equity attributable to owners
2,307,945,906.41 2,323,712,892.92 -0.68%
of the parent (RMB)
July-September January-September
YoY change YoY change
2017 2017
Net sales (RMB) 551,411,429.29 -8.89% 1,859,517,610.21 5.13%
Net margin attributable to
3,072,285.14 -84.71% 42,751,443.27 -22.42%
owners of the parent (RMB)
Net margin attributable to
owners of the parent before
629,008.33 -96.81% 21,403,055.82 -55.62%
exceptional gains and losses
(RMB)
Net cash from operating
-- -- -61,051,973.62 ——
activities (RMB)
Basic earnings per share
0.01 -75.00% 0.08 -20.00%
(RMB/share)
Diluted earnings per share
0.01 -75.00% 0.08 -20.00%
(RMB/share)
Weighted average return on
0.13% -0.82% 1.85% -0.73%
equity (%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Gains/Losses on disposal of non-current
assets (inclusive of offset asset impairment
provisions) 781,459.40
Governmental subsidy recorded into current
gains/losses (exclusive of governmental 3,097,441.57
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Changchai Company, Limited Third Quarter Report 2017
subsidy closely relevant to business events,
and quantified according to national unified
standards)
The ownership transfer formalities
regarding the Company’s acquisition
of equity interest of Changzhou Fuji
Changchai Robin Gasoline Engine
Profit due to situation where investment costs
Co., Ltd. (Changchai Robin) were
for the Company to obtain
completed on January 20, 2017. As
subsidiaries,associates and joint ventures are
22,756,742.66 such, from that date Changchai Robin
lower than
has been consolidated by the
enjoyable fair value of identifiable net assets
of investees when making investments Company. Since the closing cost of
this equity acquisition was lower than
the appraisal, this transaction
generated a premium of
RMB22,756,742.66.
Gains/Losses on fair value changes of trading
financial assets and liabilities & investment
income from disposal of trading financial
assets and liabilities as well as financial assets 482,684.24
available for sale (exclusive of effective
hedges related to normal business operations
of the Company)
Non-operating income and expense other than
-5,834,733.51
above
Less: Income tax effects 23,208.39
Minority interests effects (after tax) -88,001.48
Total 21,348,387.45 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the
said explanatory announcement as a recurrent gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Changchai Company, Limited Third Quarter Report 2017
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of common Total number of preference shareholders
52,641 0
shareholders at period-end with resumed voting rights at period-end
Top 10 shareholders
Shareholdi Total shares Restricted Pledged or frozen shares
Nature of
Name of shareholder ng held at shares held at
shareholder Status Number
percentage period-end period-end
STATE-OWNED
ASSETS SUPERVISION
AND
On behalf of
ADMINISTRATION
the 30.43% 170,845,236
COMMISSION OF
government
CHANGZHOU
MUNICIPAL PEOPLE’S
GOVERNMENT
Domestic
LEI PING’AN 0.73% 4,093,998
individual
Foreign
KGI ASIA LIMITED 0.57% 3,189,845
corporation
YUNNAN
INTERNATIONAL
TRUST CO., LTD －
Other 0.47% 2,618,658
SHENGJIN No. 36
COLLECTION FUND
TRUST PLAN
GUANGDONG
FINANCE TRUST CO.,
LTD － FINANCE
Other 0.34% 1,911,934
TRUST－JUXIN NO. 3
COLLECTION FUND
TRUST PLAN
Domestic
PENG JUN 0.32% 1,800,000
individual
VANGUARD TOTAL
Foreign
INTERNATIONAL 0.29% 1,626,592
corporation
STOCK INDEX FUND
Domestic
HUANG GUOLIANG 0.27% 1,528,891
individual
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Changchai Company, Limited Third Quarter Report 2017
Domestic
LIANG NIANYOU 0.24% 1,362,652
individual
Domestic
LI SUINAN 0.24% 1,338,700
individual
Top 10 non-restricted shareholders
Non-restricted shares Type of stock
Name of shareholder
held at period-end Type Number
STATE-OWNED ASSETS SUPERVISION AND
ADMINISTRATION COMMISSION OF
170,845,236 RMB common stock 170,845,236
CHANGZHOU MUNICIPAL PEOPLE’S
GOVERNMENT
LEI PING’AN 4,093,998 RMB common stock 4,093,998
Domestically listed
KGI ASIA LIMITED 3,189,845 stock for foreign 3,189,845
investors
YUNNAN INTERNATIONAL TRUST CO., LTD－
SHENGJIN No. 36 COLLECTION FUND TRUST 2,618,658 RMB common stock 2,618,658
PLAN
GUANGDONG FINANCE TRUST CO., LTD －
FINANCE TRUST－JUXIN NO. 3 COLLECTION 1,911,934 RMB common stock 1,911,934
FUND TRUST PLAN
PENG JUN 1,800,000 RMB common stock 1,800,000
Domestically listed
VANGUARD TOTAL INTERNATIONAL STOCK
1,626,592 stock for foreign 1,626,592
INDEX FUND
investors
Domestically listed
HUANG GUOLIANG 1,528,891 stock for foreign 1,528,891
investors
LIANG NIANYOU 1,362,652 RMB common stock 1,362,652
Domestically listed
LI SUINAN 1,338,700 stock for foreign 1,338,700
investors
It is unknown whether there was any associated
relationship among the top ten tradable shareholders and
Related or acting-in-concert parties among among the top ten shareholders not subject to trading
shareholders above moratorium, or whether they are persons acting in concert
as described by Measures for the Administrative of
Disclosure of Shareholder Equity Changes.
The shareholder Lei Ping’an held 4,093,998 shares of the
Top 10 common shareholders conducting securities Company through customer credit collateral securities
margin trading trading account of Guosen Securities Co., Ltd, with the
proportion of the share holding of 0.73%; The shareholder
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Changchai Company, Limited Third Quarter Report 2017
Peng Jun held 1,800,000 shares of the Company through
customer credit collateral securities trading account of
Haitong Securities Co., Ltd, with the proportion of the
share holding of 0.32%.
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
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Changchai Company, Limited Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
1. Selected Items in Consolidated Balance Sheet as of September 30, 2017
Unit: RMB
September 30, December 31,
Change Main reason for change
2017 2016
In nine months ended September 30, 2017,
credit sale was properly carried out to extend
Accounts market space; and most multi-cylinder engine
789,836,525.99 359,279,821.69 119.84%
receivable customers were supporting manufacturers for
bigger enterprises, which means relatively long
account ages for the Company
Prepayments to suppliers of certain materials
Prepayments 25,542,981.62 15,483,475.43 64.97%
were increased to satisfy market needs
Other Temporary loans granted by subsidiary
accounts 17,227,301.11 4,165,674.62 313.55% Housheng Investment to Xuzhou Huadong
receivable Foundry Factory, etc.
Other current
19,683,519.73 39,669,983.12 -50.38% Decrease in overpaid VAT
assets
Short-term
29,900,000.00 10,000,000.00 199.00% Increase in bank loans of subsidiaries
borrowings
A bank loan of RMB20 million was obtained
by the parent company in the current period for
Long-term
20,000,000.00 0.00 —— the R&D and industrialization of State III/State
borrowings
IV-level high-horsepower efficient agricultural
diesel engines
Advances Certain customers were required to pay greater
74,492,032.02 40,890,620.69 82.17%
received advances
Salaries and bonuses accrued in the nine
Payroll months ended September 30, 2016 were mostly
26,207,076.54 58,549,908.90 -55.24%
payable paid in the corresponding period of the current
year
2. Selected Items in Consolidated Income Statement for January-September 2017
Unit: RMB
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Changchai Company, Limited Third Quarter Report 2017
January-September January-September
Change Main reason for change
2017 2016
Increase in foreign exchange income
Finance costs -1,287,876.55 -6,869,369.26 ——
resulted from exchange rate fluctuations
Dividends received on the Bank of
Jiangsu stock and the Foton Motor
stock increased. And the Company
increased its investment in Fuji Robin
Investment to become its controlling shareholder.
13,407,484.45 3,491,931.65 283.96%
income And therefore, the Company’s original
holding in Fuji Robin was measured at
fair value, and the difference between
the fair value and the carrying value
was charged to investment income
Income arising from including
Changzhou Fuji Changchai Robin
Non-operating Gasoline Engine Co., Ltd., whose
25,903,268.01 14,014,264.30 84.84%
income equity interests the Company acquired
at a discount, into the consolidated
financial statements
3. Selected Items in Consolidated Cash Flow Statement for January-September 2017
Unit: RMB
January-September January-September
Change Main reason for change
2017 2016
Net cash from
operating -61,051,973.62 71,161,321.84 —— Increased accounts receivable
activities
The parent company had withdrawn
Net cash from investments in wealth management
investing -63,559,009.38 -41,248,683.31 -54.09% products in January-September
activities 2016, while there was no such event
in the current period
Net cash from
Increase in bank loans of the parent
financing 21,794,509.81 -22,454,068.45 ——
company and subsidiaries
activities
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
Summary of significant event Disclosure date Related announcement
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Changchai Company, Limited Third Quarter Report 2017
The Company and Synergetic Innovation Fund
Management Co., Ltd. jointly incorporated
09/26/2017, 10/19/2017 No. 2017-022,023,024 and 025
Changzhou Synergetic Innovation Private Equity
Fund (Limited Partnership)
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
√ Applicable □ Not applicable
Date of Period of
Commitment Type of
Commitment Contents commitment commitm Fulfillment
maker commitment
making ent
Commitments made in
share reform
Commitments made in
acquisition documents or
shareholding alteration
documents
Commitments made in time
of asset restructuring
Commitments made in time
of IPO or refinancing
Equity incentive
commitments
Rewards Plan
for Shareholders
in Next Three
Years(2017-201
9)
Under the
premise of
positive
distributive
Year Implement
Other commitments made Changchai profit
Company, bonus (remaining 05/11/2017 2017-201 in a normal
to minority shareholders
Limited after-tax profits
9 way
after making
up for the loss
and extracting
for the
common
reserves) in
this year or
half year and
abundant
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Changchai Company, Limited Third Quarter Report 2017
money flow
and no
influence on
the
following-up
going concern
after cash
bonus, the
profits
allocated by
cash every year
shouldn’t be
lower than
10% of the
allocable
profits from
parent
company.
Meanwhile, the
accumulated
allocable
profits by cash
in the arbitrary
continuous
three
accounting
years should
not be lower
than 30% of
the annual
average
allocable
profits in those
three years.
Fulfilled on time Yes
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period
the beginning of the current year through the end of the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Changchai Company, Limited Third Quarter Report 2017
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Progress situation of SOE reform of the
09/21/2017 Other Individual
Company
09/14/2017 Other Individual Future development plan of the Company
Situation of associated enterprises of the
09/14/2017 Other Individual
Company
09/13/2017 Other Individual Operation situation of the Company
08/27/2017 Other Individual Future development plan of the Company
08/21/2017 Other Individual Situation of SOE reform
08/04/2017 Other Individual Number of shareholders
08/03/2017 Other Individual Number of shareholders
07/25/2017 Other Individual Stock situation of the Company
07/24/2017 Other Individual Operation situation of the Company
Progress situation of SOE reform of the
07/24/2017 Other Individual
Company
07/21/2017 Other Individual Operation situation of the Company
07/20/2017 Other Individual Number of shareholders
07/06/2017 Other Individual Situation of SOE reform
Situation of the Company’s holding of
06/22/2017 Other Individual
stock of Jiangsu Bank
Situation of the Company’s holding of
06/05/2017 Other Individual
stock of Jiangsu Bank
05/24/2017 Other Individual Future development plan of the Company
05/10/2017 Other Individual Future development plan of the Company
05/09/2017 Other Individual Future development plan of the Company
05/08/2017 Other Individual Product situation of the Company
05/02/2017 Other Individual R&D situation of the Company
04/27/2017 Other Individual Operation situation of the Company
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Changchai Company, Limited Third Quarter Report 2017
04/24/2017 Other Individual Future development plan of the Company
Production and operation situation of the
04/24/2017 Other Individual
Company
04/17/2017 Other Individual Future development plan of the Company
04/13/2017 Other Individual Future development plan of the Company
04/05/2017 Production and operation situation of the
Other Individual
Company
Production and operation situation of the
04/05/2017 Other Individual
Company
03/30/2017 Other Individual Future development plan of the Company
Production and operation situation of the
02/28/2017 Other Individual
Company
Production and operation situation of the
01/17/2017 Other Individual
Company
Future development strategy of the
01/07/2017 Other Individual
Company
Progress situation of SOE reform of the
01/06/2017 Other Individual
Company
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.
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Changchai Company, Limited Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company, Limited
September 30, 2017
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 581,255,578.83 670,703,802.02
Settlement reserve
Interbank lendings
Financial assets at fair value through gains/losses
Derivative financial assets
Notes receivable 401,582,175.63 501,070,279.01
Accounts receivable 789,836,525.99 359,279,821.69
Prepayments 25,542,981.62 15,483,475.43
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable
Dividends receivable
Other accounts receivable 17,227,301.11 4,165,674.62
Financial assets purchased under agreements to resell
Inventories 384,506,437.61 494,046,458.44
Assets held for sale
Non-current assets due within one year
Other current assets 19,683,519.73 39,669,983.12
Total current assets 2,219,634,520.52 2,084,419,494.33
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 771,040,500.00 820,072,500.00
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Changchai Company, Limited Third Quarter Report 2017
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 21,006,230.03
Investment property 53,416,433.63 55,072,689.23
Fixed assets 573,909,634.56 553,678,938.87
Construction in progress 73,783,374.59 89,781,047.21
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 103,370,216.25 99,915,137.62
R&D expense
Goodwill
Long-term deferred expense
Deferred income tax assets 911,229.42 911,229.42
Other non-current assets
Total non-current assets 1,576,431,388.45 1,640,437,772.38
Total assets 3,796,065,908.97 3,724,857,266.71
Current liabilities:
Short-term borrowings 29,900,000.00 10,000,000.00
Borrowings from Central Bank
Money deposits accepted and inter-bank deposits
Interbank borrowings
Financial liabilities at fair value through gains/losses
Derivative financial liabilities
Notes payable 337,443,300.00 276,090,000.00
Accounts payable 554,684,240.14 605,424,726.65
Advances received 74,492,032.02 40,890,620.69
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 26,207,076.54 58,549,908.90
Taxes payable 9,885,546.47 9,622,332.76
Interest payable
Dividends payable 3,891,433.83 3,891,433.83
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Changchai Company, Limited Third Quarter Report 2017
Other accounts payable 244,448,689.47 204,446,810.56
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 3,194,262.83 2,454,381.75
Total current liabilities 1,284,146,581.30 1,211,370,215.14
Non-current liabilities:
Long-term borrowings 20,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Special payables
Provisions
Deferred income 62,057,232.08 61,057,232.08
Deferred income tax liabilities 102,594,900.00 109,949,700.00
Other non-current liabilities
Total non-current liabilities 184,652,132.08 171,006,932.08
Total liabilities 1,468,798,713.38 1,382,377,147.22
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 164,328,665.43 164,328,665.43
Less: Treasury shares
Other comprehensive income 581,371,100.00 623,048,300.00
Special reserve 11,715,417.22 11,715,417.22
Surplus reserve 311,880,248.88 311,880,248.88
Provisions for general risks
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Changchai Company, Limited Third Quarter Report 2017
Retained earnings 677,276,148.88 651,365,935.39
Equity attributable to owners of the parent 2,307,945,906.41 2,323,712,892.92
Minority interests 19,321,289.18 18,767,226.57
Total owners’ equity 2,327,267,195.59 2,342,480,119.49
Total liabilities and owners’ equity 3,796,065,908.97 3,724,857,266.71
Legal representative: Shi Xinkun Accounting head for this Report: Zhang Xin
Head of the accounting department: Jiang He
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 525,549,403.13 637,109,762.94
Financial assets at fair value through gains/losses
Derivative financial assets
Notes receivable 394,822,175.63 500,870,279.01
Accounts receivable 714,034,306.72 308,800,670.90
Prepayments 4,717,506.31 9,845,904.32
Interest receivable
Dividends receivable
Other accounts receivable 3,418,632.03 3,694,673.93
Inventories 272,195,857.58 430,345,089.36
Assets held for sale
Non-current assets due within one year
Other current assets 24,225,031.87
Total current assets 1,914,737,881.40 1,914,891,412.33
Non-current assets:
Available-for-sale financial assets 763,840,500.00 812,872,500.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 231,752,730.03 205,472,730.03
Investment property 53,416,433.63 55,072,689.23
Fixed assets 468,373,429.08 450,042,747.40
Construction in progress 73,771,164.67 89,781,047.21
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Changchai Company, Limited Third Quarter Report 2017
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 75,137,296.57 78,558,644.37
R&D expense
Goodwill
Long-term deferred expense
Deferred income tax assets 911,229.42 911,229.42
Other non-current assets
Total non-current assets 1,667,202,783.40 1,692,711,587.66
Total assets 3,581,940,664.80 3,607,602,999.99
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through gains/losses
Derivative financial liabilities
Notes payable 316,463,300.00 251,220,000.00
Accounts payable 484,485,849.82 596,734,009.07
Advances received 71,946,670.84 37,250,941.51
Payroll payable 21,002,180.10 52,498,428.10
Taxes payable 8,071,113.46 6,587,374.37
Interest payable
Dividends payable 3,243,179.97 3,243,179.97
Other accounts payable 242,752,287.68 194,596,980.96
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,147,964,581.87 1,142,130,913.98
Non-current liabilities:
Long-term borrowings 20,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
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Changchai Company, Limited Third Quarter Report 2017
Long-term payroll payable
Special payables
Provisions
Deferred income 62,057,232.08 61,057,232.08
Deferred income tax liabilities 102,594,900.00 109,949,700.00
Other non-current liabilities
Total non-current liabilities 184,652,132.08 171,006,932.08
Total liabilities 1,332,616,713.95 1,313,137,846.06
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 183,071,147.70 183,071,147.70
Less: Treasury shares
Other comprehensive income 581,371,100.00 623,048,300.00
Special reserve 11,715,417.22 11,715,417.22
Surplus reserve 311,880,248.88 311,880,248.88
Retained earnings 599,911,711.05 603,375,714.13
Total owners’ equity 2,249,323,950.85 2,294,465,153.93
Total liabilities and owners’ equity 3,581,940,664.80 3,607,602,999.99
3. Consolidated Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 551,411,429.29 605,182,860.65
Including: Net sales 551,411,429.29 605,182,860.65
Interest revenue 0.00 0.00
Premium revenue 0.00 0.00
Fee and commission revenue 0.00 0.00
2. Operating expenses 553,758,537.78 582,629,416.88
Including: Cost of sales 470,832,920.30 508,400,386.36
Interest expense 0.00 0.00
Fee and commission expense 0.00 0.00
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Changchai Company, Limited Third Quarter Report 2017
Surrenders 0.00 0.00
Net claims paid 0.00 0.00
Net amount provided as insurance contract reserve 0.00 0.00
Expenditure on policy dividends 0.00 0.00
Reinsurance premium expense 0.00 0.00
Taxes and surtaxes 1,498,185.39 1,478,280.66
Selling expense 38,153,014.94 26,870,375.76
Administrative expense 44,895,745.06 42,789,316.00
Finance costs -1,621,327.91 -2,058,233.97
Asset impairment losses 0.00 5,149,292.07
Add: Gains on fair value changes (“-” for losses) 0.00 0.00
Investment income (“-” for losses) 4,049,357.83 1,590,796.01
Including: Share of gains/losses of associates and joint
0.00 0.00
ventures
Exchange gains (“-” for losses) 0.00 0.00
Other income 0.00 0.00
3. Operating margin (“-” for losses) 1,702,249.34 24,144,239.78
Add: Non-operating income 4,129,944.60 3,378,070.25
Including: Gains on disposal of non-current assets 22,109.76 6,504.85
Less: Non-operating expense 1,585,185.70 2,636,463.10
Including: Losses on disposal of non-current assets 17,173.24 147,330.43
4. Gross margin (“-” for losses) 4,247,008.24 24,885,846.93
Less: Income tax expense 992,114.23 4,661,917.24
5. Net margin (“-” for losses) 3,254,894.01 20,223,929.69
Attributable to owners of the parent 3,072,285.14 20,090,608.28
Attributable to minority interests 182,608.87 133,321.41
6. Other comprehensive income, net of tax -42,075.00 320,237,050.00
Other comprehensive income, net of tax attributable to
-42,075.00 320,237,050.00
owners of the parent
6.1 Other comprehensive income that will not be
0.00 0.00
reclassified into gains/losses
6.1.1 Changes in net liabilities or assets with a
0.00 0.00
defined benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of
investees that cannot be reclassified into gains/losses under 0.00 0.00
equity method
6.2 Other comprehensive income to be subsequently -42,075.00 320,237,050.00
20
Changchai Company, Limited Third Quarter Report 2017
reclassified into gains/losses
6.2.1 Share of other comprehensive income of
investees that will be reclassified into gains/losses under equity 0.00 0.00
method
6.2.2 Gains/Losses on fair value changes of
-42,075.00 320,237,050.00
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying held-to-maturity
0.00 0.00
investments into available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges 0.00 0.00
6.2.5 Currency translation differences 0.00 0.00
6.2.6 Other 0.00 0.00
Other comprehensive income, net of tax attributable to
0.00 0.00
minority interests
7. Total comprehensive income 3,212,819.01 340,460,979.69
Attributable to owners of the parent 3,030,210.14 340,327,658.28
Attributable to minority interests 182,608.87 133,321.41
8. Earnings per share
8.1 Basic earnings per share 0.01 0.04
8.2 Diluted earnings per share 0.01 0.04
Legal representative: Shi Xinkun Accounting head for this Report: Zhang Xin
Head of the accounting department: Jiang He
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 519,533,251.59 599,271,501.38
Less: Operating expenses 448,760,167.59 508,435,908.29
Taxes and surtaxes 1,417,116.02 1,285,307.03
Selling expense 34,703,041.46 24,541,083.94
Administrative expense 40,079,299.98 39,285,195.41
Finance costs -2,767,240.21 -2,178,342.93
Asset impairment losses 0.00 5,073,416.96
Add: Gains on fair value changes (“-” for losses) 0.00 0.00
Investment income (“-” for loss) 3,757,000.00 1,433,422.80
Including: Share of gains/losses of associates and joint
0.00 0.00
ventures
21
Changchai Company, Limited Third Quarter Report 2017
Other income 0.00 0.00
2. Operating margin (“-” for losses) 1,097,866.75 24,262,355.48
Add: Non-operating income 2,746,050.87 3,245,542.27
Including: Gains on disposal of non-current assets 22,109.76 6,119,622.06
Less: Non-operating expense 777,184.55 2,636,463.10
Including: Losses on disposal of non-current assets 17,173.24 147,330.43
3. Gross margin (“-” for losses) 3,066,733.07 24,871,434.65
Less: Income tax expense 291,560.85 4,537,787.81
4. Net margin (“-” for losses) 2,775,172.22 20,333,646.84
5. Other comprehensive income, net of tax -42,075.00 320,237,050.00
5.1 Other comprehensive income that will not be reclassified
0.00 0.00
into gains and losses
5.1.1 Changes in net liabilities or assets with a defined
0.00 0.00
benefit plan upon re-measurement
5.1.2 Share of other comprehensive income of investees
that cannot be reclassified into gains/losses under equity 0.00 0.00
method
5.2 Other comprehensive income to be subsequently
-42,075.00 320,237,050.00
reclassified into gains/losses
5.2.1 Share of other comprehensive income of investees
0.00 0.00
that will be reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of
-42,075.00 320,237,050.00
available-for-sale financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity
0.00 0.00
investments into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges 0.00 0.00
5.2.5 Currency translation differences 0.00 0.00
5.2.6 Other 0.00 0.00
6. Total comprehensive income 2,733,097.22 340,570,696.84
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Income Statement for January-September
Unit: RMB
January-September January-September
Item
2017 2016
22
Changchai Company, Limited Third Quarter Report 2017
1. Operating revenue 1,859,517,610.21 1,768,843,582.34
Including: Net sales 1,859,517,610.21 1,768,843,582.34
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 1,840,879,902.93 1,712,694,317.75
Including: Cost of sales 1,612,225,242.18 1,492,994,650.79
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 8,530,314.39 3,495,808.07
Selling expense 93,968,371.07 86,388,850.36
Administrative expense 118,293,812.57 121,277,931.70
Finance costs -1,287,876.55 -6,869,369.26
Asset impairment losses 9,150,039.27 15,406,446.09
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for losses) 13,407,484.45 3,491,931.65
Including: Share of gains/losses of associates and joint
ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 32,045,191.73 59,641,196.24
Add: Non-operating income 25,903,268.01 14,014,264.30
Including: Gains on disposal of non-current assets 116,550.19 6,119,622.06
Less: Non-operating expense 7,979,840.88 6,784,303.82
Including: Losses on disposal of non-current assets 35,883.04 179,739.42
4. Gross margin (“-” for losses) 49,968,618.86 66,871,156.72
Less: Income tax expense 6,663,112.98 11,243,665.36
5. Net margin (“-” for losses) 43,305,505.88 55,627,491.36
Attributable to owners of the parent 42,751,443.27 55,108,750.64
Attributable to minority interests 554,062.61 518,740.72
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Changchai Company, Limited Third Quarter Report 2017
6. Other comprehensive income, net of tax -41,677,200.00 270,475,500.00
Other comprehensive income, net of tax attributable to
-41,677,200.00 270,475,500.00
owners of the parent
6.1 Other comprehensive income that will not be
reclassified into gains/losses
6.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of
investees that cannot be reclassified into gains/losses under
equity method
6.2 Other comprehensive income to be subsequently
-41,677,200.00 270,475,500.00
reclassified into gains/losses
6.2.1 Share of other comprehensive income of
investees that will be reclassified into gains/losses under equity
method
6.2.2 Gains/Losses on fair value changes of
-41,677,200.00 270,475,500.00
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences
6.2.6 Other
Other comprehensive income, net of tax attributable to
minority interests
7. Total comprehensive income 1,628,305.88 326,102,991.36
Attributable to owners of the parent 1,074,243.27 325,584,250.64
Attributable to minority interests 554,062.61 518,740.72
8. Earnings per share
8.1 Basic earnings per share 0.08 0.10
8.2 Diluted earnings per share 0.08 0.10
6. Parent Company Income Statement for January-September
Unit: RMB
January-September January-September
Item
2017 2016
1. Operating revenue 1,748,840,798.71 1,762,967,830.04
Less: Operating expenses 1,535,510,001.55 1,508,621,223.35
Taxes and surtaxes 7,469,956.58 2,948,488.79
Selling expense 85,011,010.11 79,839,342.39
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Changchai Company, Limited Third Quarter Report 2017
Administrative expense 104,614,674.10 109,216,619.09
Finance costs -3,403,441.05 -7,536,817.79
Asset impairment losses 9,150,039.27 15,182,514.35
Add: Gains on fair value changes (“-” for losses)
Investment income (“-” for loss) 10,709,750.99 2,618,686.92
Including: Share of gains/losses of associates and joint
ventures
Other income
2. Operating margin (“-” for losses) 21,198,309.14 57,315,146.78
Add: Non-operating income 3,313,407.07 13,149,831.83
Including: Gains on disposal of non-current assets 116,550.19 6,119,622.06
Less: Non-operating expense 6,969,533.83 6,684,303.82
Including: Losses on disposal of non-current assets 35,883.04 179,739.42
3. Gross margin (“-” for losses) 17,542,182.38 63,780,674.79
Less: Income tax expense 4,164,955.68 10,837,520.79
4. Net margin (“-” for losses) 13,377,226.70 52,943,154.00
5. Other comprehensive income, net of tax -41,677,200.00 270,475,500.00
5.1 Other comprehensive income that will not be reclassified
into gains and losses
5.1.1 Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
5.1.2 Share of other comprehensive income of investees
that cannot be reclassified into gains/losses under equity
method
5.2 Other comprehensive income to be subsequently
-41,677,200.00 270,475,500.00
reclassified into gains/losses
5.2.1 Share of other comprehensive income of investees
that will be reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of
-41,677,200.00 270,475,500.00
available-for-sale financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income -28,299,973.30 323,418,654.00
7. Earnings per share
7.1 Basic earnings per share
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Changchai Company, Limited Third Quarter Report 2017
7.2 Diluted earnings per share
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
January-September January-September
Item
2017 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of
1,847,464,192.62 1,878,758,216.61
service
Net increase in money deposits from customers and
interbank placements
Net increase in loans from Central Bank
Net increase in funds borrowed from other financial
institutions
Cash received as premiums of original insurance contracts
Net cash generated by reinsurance business
Net increase in deposits of policy holders and investment
fund
Net increase in disposal of financial assets at fair value
through gains/losses
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax rebates received 24,619,585.42 25,451,713.41
Cash generated by other operating activities 8,501,430.20 13,809,723.65
Subtotal of cash generated by operating activities 1,880,585,208.24 1,918,019,653.67
Cash paid for goods and services 1,592,437,011.20 1,484,652,767.18
Net increase in loans and advances to customers
Net increase in funds deposited in Central Bank and
interbank placements
Cash paid for claims of original insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 244,510,500.67 245,376,567.76
Taxes paid 30,890,368.40 58,392,898.88
Cash used in other operating activities 73,799,301.59 58,436,098.01
Subtotal of cash used in operating activities 1,941,637,181.86 1,846,858,331.83
26
Changchai Company, Limited Third Quarter Report 2017
Net cash from operating activities -61,051,973.62 71,161,321.84
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 12,000,000.00 38,000,000.00
Cash received as investment income 13,407,484.45 3,654,493.73
Net cash generated by disposal of fixed assets, intangible
612,112.84 29,140.00
assets and other long-term assets
Net cash generated by disposal of subsidiaries or other
business units
Cash generated by other investing activities
Subtotal of cash generated by investing activities 26,019,597.29 41,683,633.73
Cash paid to acquire fixed assets, intangible assets and other
64,624,007.34 56,932,317.04
long-term assets
Cash paid for investments 6,000,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business
1,854,599.33
units
Cash used in other investing activities 17,100,000.00 26,000,000.00
Subtotal of cash used in investing activities 89,578,606.67 82,932,317.04
Net cash from investing activities -63,559,009.38 -41,248,683.31
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received as borrowings 44,900,000.00 8,000,000.00
Cash generated by issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities 44,900,000.00 8,000,000.00
Repayment of borrowings 5,000,000.00 17,000,000.00
Cash paid for interest expenses and distribution of
18,105,490.19 13,454,068.45
dividends or profit
Including: dividends or profit paid by subsidiaries to
minority interests
Cash used in other financing activities
Sub-total of cash used in financing activities 23,105,490.19 30,454,068.45
Net cash from financing activities 21,794,509.81 -22,454,068.45
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -102,816,473.19 7,458,570.08
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Changchai Company, Limited Third Quarter Report 2017
Add: Opening balance of cash and cash equivalents 583,278,129.09 526,716,238.21
6. Closing balance of cash and cash equivalents 480,461,655.90 534,174,808.29
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
January-September January-September
Item
2017 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of
1,708,157,948.66 1,741,441,987.77
service
Tax rebates received 24,619,585.42 25,451,713.41
Cash generated by other operating activities 6,986,793.79 11,815,279.64
Subtotal of cash generated by operating activities 1,739,764,327.87 1,778,708,980.82
Cash paid for goods and services 1,483,506,231.99 1,394,962,034.09
Cash paid to and for employees 218,784,328.58 220,651,723.97
Taxes paid 26,440,358.98 51,852,861.28
Cash used in other operating activities 68,004,253.14 54,891,634.27
Subtotal of cash used in operating activities 1,796,735,172.69 1,722,358,253.61
Net cash from operating activities -56,970,844.82 56,350,727.21
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 20,000,000.00
Cash received as investment income 10,709,750.99 3,037,250.00
Net cash generated by disposal of fixed assets, intangible
193,991.71 29,140.00
assets and other long-term assets
Net cash generated by disposal of subsidiaries or other
business units
Cash generated by other investing activities
Subtotal of cash generated by investing activities 10,903,742.70 23,066,390.00
Cash paid to acquire fixed assets, intangible assets and other
63,978,352.64 54,711,256.90
long-term assets
Cash paid for investments
Net cash paid to acquire subsidiaries and other business
26,516,925.27
units
Cash used in other investing activities
Subtotal of cash used in investing activities 90,495,277.91 54,711,256.90
Net cash from investing activities -79,591,535.21 -31,644,866.90
28
Changchai Company, Limited Third Quarter Report 2017
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Cash received as borrowings 20,000,000.00
Cash generated by issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities 20,000,000.00
Repayment of borrowings
Cash paid for interest expenses and distribution of
16,841,229.78 12,911,609.50
dividends or profit
Cash used in other financing activities
Sub-total of cash used in financing activities 16,841,229.78 12,911,609.50
Net cash from financing activities 3,158,770.22 -12,911,609.50
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -133,403,609.81 11,794,250.81
Add: Opening balance of cash and cash equivalents 558,159,090.01 503,933,918.79
6. Closing balance of cash and cash equivalents 424,755,480.20 515,728,169.60
II Auditor’s Report
Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.
29
