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苏常柴B:2019年第一季度报告全文(英文版)2019-04-30  

						Changchai Company, Limited                   First Quarter Report 2019




     CHANGCHAI COMPANY, LIMITED
           FIRST QUARTER REPORT 2019




                             30 April 2019




1
Changchai Company, Limited                                                 First Quarter Report 2019




                               Part I Important Notes

     The Board of Directors (or the “Board”), the Supervisory Committee as well as the
directors, supervisors and senior management of Changchai Company, Limited (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
    All the Company’s directors have attended the Board meeting for the review of this
Report and its summary.
    Shi Xinkun, the Company’s legal representative, Zhang Xin, the Company’s General
Manager, and Jiang He, head of the Company’s financial department (equivalent to financial
manager) hereby guarantee that the Financial Statements carried in this Report are factual,
accurate and complete.
     This Report and its summary have been prepared in both Chinese and English. Should
there be any discrepancies or misunderstandings between the two versions, the Chinese
versions shall prevail.




2
Changchai Company, Limited                                                                      First Quarter Report 2019




                               Part II Key Corporate Information

I Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.

□ Yes √ No
                                                            Q1 2019                Q1 2018             Change (%)
Operating revenue (RMB)                                     557,670,611.48        593,008,785.46               -5.96%
Net profit attributable to the listed company’s
                                                              2,518,025.10          11,343,577.44             -77.80%
shareholders (RMB)
Net profit attributable to the listed company’s
                                                              1,083,678.62          11,141,982.06             -90.27%
shareholders before exceptional items (RMB)
Net cash generated from/used in operating
                                                            -63,832,631.41         -73,259,277.76                  ——
activities (RMB)
Basic earnings per share (RMB/share)                                0.0045                0.0202              -77.72%
Diluted earnings per share (RMB/share)                              0.0045                0.0202              -77.72%
Weighted average return on equity (%)                                 0.13%                  0.51%             -0.38%
                                                         31 March 2019         31 December 2018        Change (%)
Total assets (RMB)                                        3,647,312,419.27       3,542,019,195.75               2.97%
Equity attributable to the listed company’s
                                                          2,127,447,301.84       2,043,308,026.74               4.12%
shareholders (RMB)

Exceptional gains and losses:

√ Applicable □ Not applicable

                                                                                                            Unit: RMB
                                     Item                                           Q1 2019                 Note
    Gain or loss on disposal of non-current assets (inclusive of impairment
                                                                                        984,535.95
    allowance write-offs)
    Government subsidies charged to current profit and loss (exclusive of
    government subsidies given in the Company’s ordinary course of
                                                                                        129,300.00
    business at fixed quotas or amounts as per government’s uniform
    standards )
    Gain or loss on fair-value changes in trading financial assets and
    liabilities and derivative financial assets and liabilities & investment
    income from disposal of trading financial assets and liabilities and                115,280.60
    derivative financial assets and liabilities, and other creditors’
    investment (exclusive of effective portion of hedges that arise in the

3
Changchai Company, Limited                                                                     First Quarter Report 2019


    Company’s ordinary course of business)
    Non-operating income and expense other than the above                               432,639.69
    Less: Income tax effects                                                            223,748.22
            Non-controlling interests effects (net of tax)                                3,661.54
    Total                                                                              1,434,346.48             --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the

Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the

Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

No such cases for the Reporting Period.


II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019

1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders

                                                                                                               Unit: share
Number         of       ordinary                       Number of preferred shareholders with resumed
                                           57,411                                                                      0
shareholders at the period-end                         voting rights at the period-end (if any)
                                                     Top 10 shareholders
                                                                                                         Shares in pledge
                                                         Shareholding Total shares      Restricted
      Name of shareholder          Nature of shareholder                                                    or frozen
                                                          percentage     held          shares held
                                                                                                         Status Shares
Changzhou Investment              State-owned legal
                                                                 30.43% 170,845,236                  0
Group Co., Ltd                    person
KGI Asia Limited                  Foreign legal person            0.57%    3,189,845                 0
                                  Domestic natural
Huang Guoliang                                                    0.27%    1,528,891                 0
                                  person
                                  Domestic natural
Hu Wenyong                                                        0.27%    1,503,566                 0
                                  person
                                  Domestic natural
Li Suinan                                                         0.27%    1,492,200                 0
                                  person
                                  Domestic natural
Tao Xiaofang                                                      0.22%    1,240,000                 0
                                  person
Vanguard Investment
Australia Co.,                    Foreign legal person            0.21%    1,196,785                 0
Ltd—Vanguard Emerging


4
Changchai Company, Limited                                                                 First Quarter Report 2019


Market Stock Index
(Exchange)
                             Domestic natural
Xue Hong                                                   0.21%      1,180,000              0
                             person
                             Domestic natural
Xie Deqing                                                 0.20%      1,115,000              0
                             person
Central  Huijin      Asset State-owned legal
                                                           0.20%      1,107,900              0
Management Co., Ltd.       person
                                       Top 10 unrestricted shareholders
                                                                                      Shares by type
             Name of shareholder                Unrestricted shares held
                                                                                   Type              Shares
                                                                            RMB-denominated
Changzhou Investment Group Co., Ltd                          170,845,236                            170,845,236
                                                                            ordinary stock
                                                                            Domestically listed
KGI Asia Limited                                               3,189,845                               3,189,845
                                                                            foreign stock
                                                                            Domestically listed
Huang Guoliang                                                 1,528,891                               1,528,891
                                                                            foreign stock
                                                                            Domestically listed
Hu Wenyong                                                     1,503,566                               1,503,566
                                                                            foreign stock
                                                                            Domestically listed
Li Suinan                                                      1,492,200                               1,492,200
                                                                            foreign stock
                                                                            RMB-denominated
Tao Xiaofang                                                   1,240,000                               1,240,000
                                                                            ordinary stock
Vanguard Investment Australia Co.,
                                                                            RMB-denominated
Ltd—Vanguard Emerging Market Stock Index                      1,196,785                               1,196,785
                                                                            ordinary stock
(Exchange)
                                                                            Domestically listed
Xue Hong                                                       1,180,000                               1,180,000
                                                                            foreign stock
                                                                            Domestically listed
Xie Deqing                                                      1,115,000                              1,115,000
                                                                            foreign stock
                                                                            RMB-denominated
Central Huijin Asset Management Co., Ltd.                      1,107,900                               1,107,900
                                                                            ordinary stock
                                               It is unknown whether there is among the top 10 public
                                               shareholders and the top 10 unrestricted public shareholders any
Related or acting-in-concert parties among the
                                               related parties or acting-in-concert parties as defined in the
shareholders above
                                               Administrative    Measures     for     Information    Regarding
                                               Shareholding Alteration.
Top 10 ordinary shareholders involved in
                                         N/A
securities margin trading (if any)

5
Changchai Company, Limited                                                               First Quarter Report 2019


Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary

shareholders of the Company conducted any promissory repo during the Reporting Period.

□ Yea √ No

No such cases in the Reporting Period.


2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them


□ Applicable √ Not applicable




6
Changchai Company, Limited                                                             First Quarter Report 2019




                                  Part III Significant Events

I Changes in Key Financial Statement Line Items and Explanation of why

√ Applicable □ Not applicable
1. Accounts receivable increased by RMB263,286,355.77, or 69.49%, as of 31 March 2019 compared to 31
December 2018, primarily because the Company properly allowed customers’ buying on credit for more markets
in Q1 2019 and multi-cylinder diesel engine customers are mainly supporting companies of main engine , which
are usually given longer payment days.
2. Other current assets decreased by RMB16,089,662.06, or 46.83%, as of 31 March 2019 compared to 31
December 2018, mainly because excess VAT paid of the Company decreased, and part of bank financial products
of subsidiaries expired in the Reporting Period.
3. Advances from customers increased by RMB11,615,302.19, or 33.67%, as of 31 March 2019 compared to 31
December 2018, mainly driven by the increase of advances from customers.
4. Payroll payable decreased by RMB20,613,167.11, or 40.82%, as of 31 March 2019 compared to 31 December
2018, mainly because accrued salary and bonus in last period was partially paid in this period.
5. Deferred income tax liabilities increased by RMB14,559,591.18, or 30.35%, as of 31 March 2019 compared to
31 December 2018, mainly because the fair value of financial assets held by the Company rose in the Reporting
Period with the corresponding increase of deferred income tax liabilities.
6. Taxes payable decreased by RMB2,697,983.77, or 38.18%, as of 31 March 2019 compared to 31 December
2018, mainly driven by the decrease of taxes payable of the Company in the Reporting Period.
7. Other comprehensive income increased by RMB81,621,250.00, or 30.87%, as of 31 March 2019 compared to
31 December 2018, mainly because the fair value of financial assets held by the Company rose with the
corresponding increase of other comprehensive income.
8. Finance costs went down by RMB1,202,648.06, or 33.97%, during Q1 2019 compared to Q1 2018, primarily
driven by the changes in net foreign exchange gains and losses resulted from exchange rate fluctuations in Q1
2019.
9. Assets impairment loss rose by RMB6,247,186.29 during Q1 2019 compared to Q1 2018, primarily due to the
increase of accounts receivable and the provision made for bad debt in Q1 2019.
10. Net profit attributable to owners of the Company as the parent went down by RMB8,825,552.34, or 77.80%,
during Q1 2019 compared to Q1 2018, primarily because production and sales volume, and sales revenue
decreased during Q1 2019 compared to Q1 2018 resulted from the fierce market competition in the Reporting
Period, which resulted to an obvious loss of income from core business.
11. Net cash generated from investing activities went down by RMB7,366,971.55, or 37.02%, during Q1 2019
compared to Q1 2018, primarily because the payment for building fixed assets, intangible assets, and other
long-term assets decreased in Q1 2019.

II Progress, Influence and Solutions with regard to Significant Events

□ Applicable √ Not applicable


7
Changchai Company, Limited                                                                       First Quarter Report 2019


Progress of any share repurchase:

□ Applicable √ Not applicable

Progress of any reduction of the repurchased shares through centralized bidding:

□ Applicable √ Not applicable


III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period

□ Applicable √ Not applicable
No such cases in the Reporting Period.

IV Operating Performance Forecast for H1 2019

Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as
explanation of why:
□ Applicable √ Not applicable

V Securities Investments

√ Applicable □ Not applicable
                                                                                                            Unit: RMB
                                                        Gain
                                                                Cum
                                                        /loss
                                                                ulati
                                                          on
                                        Acco                      ve    Purc            Gain
                                                         fair                   Sold
                               Initia   untin   Begi             fair   hase            /loss
                                                        value                     in            Endi
    Varie    Code     Nam         l       g     nnin            value    d in             in            Acco     Capit
                                                        chan                     the              ng
    ty of       of     e of             meas      g             chan     the             the            untin      al
                               inves                     ges                    Repo            carry
    secur    secur    secur             urem    carry            ges    Repo            Repo              g      resou
                                                          in                    rting            ing
     ities    ities    ities   tmen      ent     ing            recor   rting           rting           item      rces
                                                         the                    Perio           value
                               t cost   mode    value            ded    Perio           Perio
                                                        Repo                       d
                                          l                      into     d                d
                                                        rting
                                                                equit
                                                        Perio
                                                                   y
                                                          d
                                                                                                        Inves
                                                                                                        tmen
                                        Fair                                                            ts in
                                41,7             262,    75,1    251,                            338,            Self-
                                        value                                                           other
    Stoc     6001     FOT       84,0             990,    40,0    894,                            130,            owne
                                        meas                            0.00     0.00   0.00            equit
    k        66       ON        00.0             000.    00.0    100.                            000.            d
                                        urem                                                            y
                                   0              00        0     00                              00             funds
                                        ent                                                             instr
                                                                                                        ume
                                                                                                        nts

    Stoc     6009     Bank      18,0    Fair     107,    20,8    93,7   0.00     0.00   0.00     128,   Inves    Self-

8
Changchai Company, Limited                                                            First Quarter Report 2019


    k       19      of       00,0   value   460,   80,0   89,0                        340,   tmen     owne
                    Jiang    00.0   meas    000.   00.0   00.0                        000.   ts in    d
                    su          0   urem     00       0      0                         00    other    funds
                                    ent                                                      equit
                                                                                             y
                                                                                             instr
                                                                                             ume
                                                                                             nts
                                                                                             Inves
                                                                                             tmen
                    Jiang           Fair                                                     ts in
                                                                                                      Self-
                    su       90,5   value   490,          343,                        495,   other
    Stoc    6003                                   5,00                                               owne
                    Expr     00.0   meas    000.          825.   0.00   0.00   0.00   000.   equit
    k       77                                     0.00                                               d
                    essw        0   urem     00            00                          00    y
                                                                                                      funds
                    ay              ent                                                      instr
                                                                                             ume
                                                                                             nts
    Other securities
    investments held as      0.00    --     0.00   0.00   0.00   0.00   0.00   0.00   0.00     --       --
    at the Period-end
                             59,8           370,   96,0   346,                        466,
                             74,5           940,   25,0   026,                        965,
    Total                            --                          0.00   0.00   0.00            --       --
                             00.0           000.   00.0   925.                        000.
                                0            00       0    00                          00
    Disclosure date of
    announcement       on
    Board’s consent for
    securities investment
    Disclosure date of
    announcement       on
    shareholders’
    meeting’s consent for
    securities investment
    (if any)


VI Investments in Derivative Financial Instruments

□ Applicable √ Not applicable
No such cases in the Reporting Period.




9
Changchai Company, Limited                                                              First Quarter Report 2019


VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period

√ Applicable □ Not applicable
                            Way of      Type of
         Date             communica   communicati          Index to main information communicated
                             tion       on party
 28 March 2019           Other        Individual    Equity incentive of the Company
 28 March 2019           Other        Individual    Equity investment of the Company
 28 March 2019           Other        Individual    Operations of the Company
                                                    Progress and shareholding of projects invested by the
 27 March 2019           Other        Individual
                                                    Company
                                                    Operations of the Company’s joint stock companies via
 21 March 2019           Other        Individual
                                                    investments
 21 March 2019           Other        Individual    Brand value and market value of the Company
                                                    Whether Union Test, the Company’s subsidiary
 19 March 2019           Other        Individual
                                                    participated in, planned to be listed
                                                    Whether the Company participates in Xinguang
 18 March 2019           Other        Individual
                                                    Photoelectric through investment
                                                    The Company participates in Xinguang Photoelectric
 18 March 2019           Other        Individual
                                                    through investment
                                                    That the Company participates in               Xinguang
 14 March 2019           Other        Individual
                                                    Photoelectric through investment is not true
                                                    Key tasks of the Company regarding reform and
 10 March 2019           Other        Individual
                                                    development in this year
                                                    Inquired the reform of state-owned enterprises toward
 10 March 2019           Other        Individual
                                                    mixed system
                                                    Inquired the reform of state-owned enterprises toward
 8 March 2019            Other        Individual
                                                    mixed system
 5 March 2019            Other        Individual    Transformation and upgrading of the Company
                                                    The Company purchased the land use right of
 25 February 2019        Other        Individual
                                                    Changzhou High-Tech Zone
                                                    Weaknesses of the Company compared with other
 25 February 2019        Other        Individual
                                                    companies
                                                    Progress of Lithium Battery Diaphragm Project
 25 February 2019        Other        Individual    invested by the industrial fund the Company
                                                    participates in the establishment
                                                    Disclosure of the Company’s operating performance
 2 February 2019         Other        Individual
                                                    forecast

10
Changchai Company, Limited                                                                 First Quarter Report 2019


 1 February 2019         Other           Individual   The Company’s new year’s wishes to investors
 31 January 2019         Other           Individual   Investors’ vision for the Company
                                                      Support to the Company provided by the Company’s
 25 January 2019         Other           Individual
                                                      controlling shareholders
                                                      The Company’s layout of hydrogen-based fuel-cell
 25 January 2019         Other           Individual
                                                      engine business
                                                      Sales of shares of Bank of Jiangsu held by the
 25 January 2019         Other           Individual
                                                      Company
 24 January 2019         Other           Individual   Products of the Company
 24 January 2019         Other           Individual   Efforts of the Company in response to policies
 24 January 2019         Other           Individual   Condition of the industry the Company belongs to
                                                      Progress of Lithium Battery Diaphragm Project
 23 January 2019         Other           Individual   invested by the industrial fund the Company
                                                      participates in the establishment
 23 January 2019         Other           Individual   The Company’s investment in new energy industry
 13 January 2019         Other           Individual   Government subsidies the Company received
                                                      Disclosure condition of the Company’s operating
 11 January 2019         Other           Individual
                                                      performance forecast


VIII Irregularities in the Provision of Guarantees

□ Applicable √ Not applicable
No such cases in the Reporting Period.

IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes

□ Applicable √ Not applicable
No such cases in the Reporting Period.




11
Changchai Company, Limited                                                               First Quarter Report 2019




                                    Part IV Financial Statements

I Financial Statements

1. Consolidated Balance Sheet

Prepared by Changchai Company, Limited
                                                     31 March 2019
                                                                                                     Unit: RMB
                                Item                                 31 March 2019       31 December 2018
 Current assets:
     Monetary capital                                                  659,396,261.80         800,960,036.69
     Settlement reserve
     Interbank loans granted
     Trading financial assets
     Financial assets at fair value through profit or loss
     Derivative financial assets
     Notes and accounts receivable                                    1,107,119,659.73        874,229,941.58
       Including: Notes receivable                                     437,037,772.68         495,370,782.47
                   Accounts receivable                                 642,145,514.88         378,859,159.11
     Prepayments                                                        13,232,719.77          11,352,297.10
     Premiums receivable
     Reinsurance receivables
     Receivable reinsurance contract reserve
     Other receivables                                                  11,863,925.52           9,244,584.42
       Including: Interest receivable
                   Dividends receivable
     Financial assets purchased under resale agreements
     Inventories                                                       511,685,689.73         557,953,891.70
     Contractual assets
     Assets classified as held for sale
     Current portion of non-current assets
     Other current assets                                               18,267,946.91          34,357,608.97
 Total current assets                                                 2,321,566,203.46      2,288,098,360.46


12
Changchai Company, Limited                                                           First Quarter Report 2019


 Non-current assets:
     Loans and advances to customers
     Investments in debt obligations
     Available-for-sale financial assets                                                  498,851,369.49
     Investments in other debt obligations
     Held-to-maturity investments
     Long-term receivables
     Long-term equity investments
     Investments in other equity instruments                       594,876,369.49
     Other non-current financial assets
     Investment property                                            50,103,922.43          50,656,007.63
     Fixed assets                                                  495,840,203.67         511,250,371.37
     Construction in progress                                       81,775,335.52          89,090,384.71
     Productive living assets
     Oil and gas assets
     Right-of-use assets
     Intangible assets                                             102,170,561.99         103,092,879.38
     R&D expense
     Goodwill
     Long-term prepaid expense
     Deferred income tax assets                                        979,822.71              979,822.71
     Other non-current assets
 Total non-current assets                                         1,325,746,215.81      1,253,920,835.29
 Total assets                                                     3,647,312,419.27      3,542,019,195.75
 Current liabilities:
     Short-term borrowings                                          27,000,000.00          27,000,000.00
     Borrowings from central bank
     Interbank loans obtained
     Trading financial liabilities
     Financial liabilities at fair value through profit or loss
     Derivative financial liabilities
     Notes and accounts payable                                   1,032,213,274.91      1,030,130,275.77
     Advances from customers                                        46,115,535.16          34,500,232.97
     Financial assets sold under repurchase agreements


13
Changchai Company, Limited                                                              First Quarter Report 2019


     Customer deposits and interbank deposits
     Payables for acting trading of securities
     Payables for underwriting of securities
     Payroll payable                                                   29,887,425.88          50,500,592.99
     Taxes payable                                                      4,368,102.12           7,066,085.89
     Other payables                                                   214,757,711.70         199,412,250.90
       Including: Interest payable                                              0.00                     0.00
                     Dividends payable                                  3,891,433.83           3,891,433.83
     Handling charges and commissions payable
     Reinsurance payables
     Contractual liabilities
    Liabilities directly associated with assets classified as held
 for sale
     Current portion of non-current liabilities                        18,500,000.00          18,500,000.00
     Other current liabilities                                          2,895,716.82           2,082,985.18
 Total current liabilities                                           1,375,737,766.59      1,369,192,423.70
 Non-current liabilities:
     Insurance contract reserve
     Long-term borrowings                                               2,000,000.00           2,000,000.00
     Bonds payable
       Including: Preferred shares
                     Perpetual bonds
     Lease liabilities
     Long-term payables
     Long-term payroll payable
     Provisions
     Deferred income                                                   59,928,484.84          59,928,484.84
     Deferred income tax liabilities                                   62,531,371.54          47,971,780.36
     Other non-current liabilities
 Total non-current liabilities                                        124,459,856.38         109,900,265.20
 Total liabilities                                                   1,500,197,622.97      1,479,092,688.90
 Owners’ equity:
     Share capital                                                    561,374,326.00         561,374,326.00
     Other equity instruments
       Including: Preferred shares

14
Changchai Company, Limited                                                       First Quarter Report 2019


                  Perpetual bonds
     Capital reserves                                         164,328,665.43          164,328,665.43
     Less: Treasury stock
     Other comprehensive income                               346,026,925.00          264,405,675.00
     Specific reserve                                          15,182,958.83           15,182,958.83
     Surplus reserves                                         320,133,050.15          320,133,050.15
     General reserve
     Retained earnings                                        720,401,376.43          717,883,351.33
 Total equity attributable to owners of the Company as the
                                                             2,127,447,301.84       2,043,308,026.74
 parent
 Non-controlling interests                                     19,667,494.46           19,618,480.11
 Total owners’ equity                                       2,147,114,796.30       2,062,926,506.85
 Total liabilities and owners’ equity                       3,647,312,419.27       3,542,019,195.75


Legal representative: Shi Xinkun                                         General manager: Zhang Xin

Head of the Company’s financial department: Jiang He




15
Changchai Company, Limited                                                       First Quarter Report 2019


2. Balance Sheet of the Company as the Parent

                                                                                             Unit: RMB
                                   Item                      31 March 2019       31 December 2018
 Current assets:
     Monetary capital                                          614,298,184.21         759,404,219.72
     Trading financial assets
     Financial assets at fair value through profit or loss
     Derivative financial assets
     Notes and accounts receivable                            1,021,321,136.46        790,877,079.72
       Including: Notes receivable                             428,324,252.68         490,519,795.91
                    Accounts receivable                        592,996,883.78         300,357,283.81
     Prepayments                                                 5,315,580.26            4,768,038.11
     Other receivables                                          25,179,716.80          21,681,331.85
       Including: Interest receivable                                    0.00                     0.00
                    Dividends receivable                                 0.00                     0.00
     Inventories                                               383,455,086.73         437,423,195.46
     Contractual assets
     Assets classified as held for sale
     Current portion of non-current assets
     Other current assets                                        4,565,051.78          23,099,858.67
 Total current assets                                         2,054,134,756.24      2,037,253,723.53
 Non-current assets:
     Investments in debt obligations
     Available-for-sale financial assets                                              470,940,000.00
     Investments in other debt obligations
     Held-to-maturity investments
     Long-term receivables
     Long-term equity investments                              251,752,730.03         241,752,730.03
     Investments in other equity instruments                   566,965,000.00
     Other non-current financial assets
     Investment property                                        50,103,922.43          50,656,007.63
     Fixed assets                                              397,386,621.16         413,186,680.19
     Construction in progress                                   79,692,166.72          87,007,215.91
     Productive living assets

16
Changchai Company, Limited                                                              First Quarter Report 2019


     Oil and gas assets
     Right-of-use assets
     Intangible assets                                                 71,483,632.39          72,184,608.63
     R&D expense
     Goodwill
     Long-term prepaid expense
     Deferred income tax assets                                           930,641.19              930,641.19
     Other non-current assets
 Total non-current assets                                            1,418,314,713.92      1,336,657,883.58
 Total assets                                                        3,472,449,470.16      3,373,911,607.11
 Current liabilities:
     Short-term borrowings                                             10,000,000.00          10,000,000.00
     Trading financial liabilities
     Financial liabilities at fair value through profit or loss
     Derivative financial liabilities
     Notes and accounts payable                                       985,392,630.66         987,550,797.44
     Advances from customers                                           43,003,437.16          32,072,387.55
     Contractual liabilities
     Payroll payable                                                   24,202,486.14          43,597,759.22
     Taxes payable                                                      1,162,793.09           2,443,767.89
     Other payables                                                   197,158,844.89         185,022,961.56
       Including: Interest payable                                              0.00                     0.00
                   Dividends payable                                    3,243,179.97           3,243,179.97
    Liabilities directly associated with assets classified as held
 for sale
     Current portion of non-current liabilities                        18,500,000.00          18,500,000.00
     Other current liabilities
 Total current liabilities                                           1,279,420,191.94      1,279,187,673.66
 Non-current liabilities:
     Long-term borrowings
     Bonds payable
       Including: Preferred shares
                   Perpetual bonds
     Lease liabilities
     Long-term payables

17
Changchai Company, Limited                                                 First Quarter Report 2019


     Long-term payroll payable
     Provisions
     Deferred income                                      59,928,484.84          59,928,484.84
     Deferred income tax liabilities                      61,063,575.00          46,659,825.00
     Other non-current liabilities
 Total non-current liabilities                           120,992,059.84         106,588,309.84
 Total liabilities                                      1,400,412,251.78      1,385,775,983.50
 Owners’ equity:
     Share capital                                       561,374,326.00         561,374,326.00
     Other equity instruments
       Including: Preferred shares
                     Perpetual bonds
     Capital reserves                                    183,071,147.70         183,071,147.70
     Less: Treasury stock
     Other comprehensive income                          346,026,925.00         264,405,675.00
     Specific reserve                                     15,182,958.83          15,182,958.83
     Surplus reserves                                    320,133,050.15         320,133,050.15
     Retained earnings                                   646,248,810.70         643,968,465.93
 Total owners’ equity                                  2,072,037,218.38      1,988,135,623.61
 Total liabilities and owners’ equity                  3,472,449,470.16      3,373,911,607.11


Legal representative: Shi Xinkun                                  General manager: Zhang Xin

Head of the Company’s financial department: Jiang He




18
Changchai Company, Limited                                                            First Quarter Report 2019


3. Consolidated Income Statement
                                                                                                  Unit: RMB
                                    Item                              Q1 2019                Q1 2018
 1. Revenue                                                          557,670,611.48        593,008,785.46
     Including: Operating revenue                                    557,670,611.48        593,008,785.46
                Interest income
                Premium income
                Handling charge and commission income
 2. Costs and expenses                                               555,707,887.60        579,389,265.96
     Including: Cost of sales                                        490,367,392.94        514,583,143.24
                Interest expense
                Handling charge and commission expense
                Surrenders
                Net claims paid
                Net amount provided as insurance contract reserve
                Expenditure on policy dividends
                Reinsurance premium expense
                Taxes and surcharges                                   2,586,596.10          2,841,402.82
                Selling expense                                       25,812,066.86         27,010,594.06
                Administrative expense                                14,279,960.47         15,887,370.14
                R&D expense                                           14,077,360.88         15,526,783.58
                Finance costs                                          2,337,324.06          3,539,972.12
                  Including: Interest expense                           813,946.55              645,225.08
                                Interest income                        1,405,261.21             986,542.32
                Asset impairment loss                                  6,247,186.29
                Credit impairment loss
 Add: Other income                                                      129,300.00
        Return on investment (“-” for loss)                           115,280.60               64,096.56
          Including: Share of profit or loss of joint ventures and
 associates
        Foreign exchange gain (“-” for loss)
        Net gain on exposure hedges (“-” for loss)
        Gain on changes in fair value (“-” for loss)
        Asset disposal income (“-” for loss)                          984,535.95
 3. Operating profit (“-” for loss)                                  3,191,840.43         13,683,616.06


19
Changchai Company, Limited                                                                      First Quarter Report 2019


 Add: Non-operating income                                                        452,748.32           1,674,474.55
 Less: Non-operating expense                                                       20,108.63           1,524,616.21
 4. Profit before tax (“-” for loss)                                           3,624,480.12         13,833,474.40
 Less: Income tax expense                                                        1,057,440.67          2,294,565.22
 5. Net profit (“-” for net loss)                                              2,567,039.45         11,538,909.18
     5.1 By operating continuity
       5.1.1 Net profit from continuing operations (“-” for net loss)          2,567,039.45         11,538,909.18
       5.1.2 Net profit from discontinued operations ( -” for net loss)
     5.2 By ownership
      5.2.1 Net profit attributable to owners of the Company as the
                                                                                 2,518,025.10         11,343,577.44
 parent
       5.2.2 Net profit attributable to non-controlling interests                  49,014.35              195,331.74
 6. Other comprehensive income, net of tax                                      81,621,250.00        -36,596,325.00
     Attributable to owners of the Company as the parent                        81,621,250.00        -36,596,325.00
       6.1 Items that will not be reclassified to profit or loss                81,621,250.00
        6.1.1 Changes caused by remeasurements on defined benefit
 pension schemes
         6.1.2 Other comprehensive income that will not be
 reclassified to profit or loss under the equity method
        6.1.3 Changes in the fair value of investments in other equity
                                                                                81,621,250.00
 instruments
         6.1.4 Changes in the fair value of the company’s credit risks
         6.1.5 Other
       6.2 Items that will be reclassified to profit or loss                                         -36,596,325.00
         6.2.1 Other comprehensive income that will be reclassified to
 profit or loss under the equity method
         6.2.2 Changes in the fair value of investments in other debt
 obligations
        6.2.3 Gain/Loss on changes              in   the   fair    value   of
                                                                                                     -36,596,325.00
 available-for-sale financial assets
         6.2.4 Other comprehensive income arising from the
 reclassification of financial assets
         6.2.5 Gain/Loss arising from the reclassification of
 held-to-maturity investments to available-for-sale financial assets
        6.2.6 Allowance for credit impairments in investments in
 other debt obligations
         6.2.7 Reserve for cash flow hedges
        6.2.8 Differences arising from the translation of foreign
 currency-denominated financial statements

20
Changchai Company, Limited                                                 First Quarter Report 2019


          6.2.9 Other
     Attributable to non-controlling interests
 7. Total comprehensive income                             84,188,289.45        -25,057,415.82
     Attributable to owners of the Company as the parent   84,139,275.10        -25,252,747.56
     Attributable to non-controlling interests                49,014.35              195,331.74
 8. Earnings per share
     8.1 Basic earnings per share                                0.0045                  0.0202
     8.2 Diluted earnings per share                              0.0045                  0.0202


Legal representative: Shi Xinkun                               General manager: Zhang Xin

Head of the Company’s financial department: Jiang He




21
Changchai Company, Limited                                                             First Quarter Report 2019


4. Income Statement of the Company as the Parent

                                                                                                   Unit: RMB
                                  Item                                Q1 2019               Q1 2018
 1. Operating revenue                                                 517,869,769.55        546,106,384.32
 Less: Cost of sales                                                  460,358,879.40        478,947,398.52
       Taxes and surcharges                                             2,027,946.33          2,016,404.51
       Selling expense                                                 23,691,858.67         24,722,755.12
       Administrative expense                                           9,526,479.22         10,787,074.70
       R&D expense                                                     13,521,905.65         15,526,783.58
       Finance costs                                                    1,105,188.53          1,660,143.55
          Including: Interest expense                                    558,794.31              375,425.98
                       Interest income                                  1,325,616.24             650,882.58
       Asset impairment loss                                            6,247,186.29
       Credit impairment loss
 Add: Other income                                                       129,300.00
         Return on investment (“-” for loss)
          Including: Share of profit or loss of joint ventures and
 associates
         Net gain on exposure hedges (“-” for loss)
         Gain on changes in fair value (“-” for loss)
        Asset disposal income (“-” for loss)                           984,535.95
 2. Operating profit (“-” for loss)                                   2,504,161.41         12,445,824.34
 Add: Non-operating income                                               187,691.12           1,339,652.51
 Less: Non-operating expense                                                9,093.98          1,523,958.21
 3. Profit before tax (“-” for loss)                                  2,682,758.55         12,261,518.64
 Less: Income tax expense                                                402,413.78           1,839,227.80
 4. Net profit (“-” for net loss)                                     2,280,344.77         10,422,290.84
     4.1 Net profit from continuing operations (“-” for net loss)     2,280,344.77         10,422,290.84
    4.2 Net profit from discontinued operations (“-” for net
 loss)
 5. Other comprehensive income, net of tax                             81,621,250.00        -36,596,325.00
     5.1 Items that will not be reclassified to profit or loss         81,621,250.00
     5.1.1 Changes caused by remeasurements on defined
 benefit pension schemes
       5.1.2 Other comprehensive income that will not be


22
Changchai Company, Limited                                                          First Quarter Report 2019


 reclassified to profit or loss under the equity method
      5.1.3 Changes in the fair value of investments in other
                                                                    81,621,250.00
 equity instruments
         5.1.4 Changes in the fair value of the company’s credit
 risks
         5.1.5 Other
     5.2 Items that will be reclassified to profit or loss                               -36,596,325.00
      5.2.1 Other comprehensive income that will              be
 reclassified to profit or loss under the equity method
      5.2.2 Changes in the fair value of investments in other
 debt obligations
      5.2.3 Gain/Loss on changes in the fair value of
                                                                                         -36,596,325.00
 available-for-sale financial assets
      5.2.4 Other comprehensive income arising from the
 reclassification of financial assets
      5.2.5 Gain/Loss arising from the reclassification of
 held-to-maturity investments to available-for-sale financial
 assets
      5.2.6 Allowance for credit impairments in investments in
 other debt obligations
         5.2.7 Reserve for cash flow hedges
      5.2.8 Differences arising from the translation of foreign
 currency-denominated financial statements
         5.2.9 Other
 6. Total comprehensive income                                      83,901,594.77        -26,174,034.16
 7. Earnings per share
      7.1 Basic earnings per share                                        0.0041                  0.0186
      7.2 Diluted earnings per share                                      0.0041                  0.0186


Legal representative: Shi Xinkun                                           General manager: Zhang Xin

Head of the Company’s financial department: Jiang He




23
Changchai Company, Limited                                                         First Quarter Report 2019


5. Consolidated Cash Flow Statement

                                                                                               Unit: RMB
                                Item                              Q1 2019               Q1 2018
 1. Cash flows from operating activities:
    Proceeds from sale of commodities and rendering of
                                                                  385,993,156.10        439,612,228.47
 services
     Net increase in customer deposits and interbank deposits
     Net increase in borrowings from the central bank
     Net increase in loans from other financial institutions
     Premiums received on original insurance contracts
     Net proceeds from reinsurance
     Net increase in deposits and investments of policy holders
    Net increase in proceeds from disposal of financial assets
 at fair value through profit or loss
     Interest, handling charges and commissions received
     Net increase in interbank loans obtained
     Net increase in proceeds from repurchase transactions
     Net proceeds from acting trading of securities
     Tax rebates                                                   13,338,440.09         17,753,037.91
     Cash generated from other operating activities                 5,026,831.34          3,702,330.49
 Subtotal of cash generated from operating activities             404,358,427.53        461,067,596.87
     Payments for commodities and services                        345,226,371.02        406,939,946.87
     Net increase in loans and advances to customers
    Net increase in deposits in the central bank and in
 interbank loans granted
     Payments for claims on original insurance contracts
     Net increase in financial assets held for trading purposes
     Net increase in interbank loans granted
     Interest, handling charges and commissions paid
     Policy dividends paid
     Cash paid to and for employees                                87,234,321.19         92,450,068.47
     Taxes paid                                                     8,260,325.27          9,951,419.10
     Cash used in other operating activities                       27,470,041.46         24,985,440.19
 Subtotal of cash used in operating activities                    468,191,058.94        534,326,874.63
 Net cash generated from/used in operating activities             -63,832,631.41        -73,259,277.76


24
Changchai Company, Limited                                                            First Quarter Report 2019


 2. Cash flows from investing activities:
     Proceeds from disinvestment                                       4,000,000.00          2,000,000.00
     Return on investment                                                115,280.60              64,096.56
   Net proceeds from the disposal of fixed assets, intangible
                                                                       1,001,035.95             198,255.47
 assets and other long-lived assets
   Net proceeds from the disposal of subsidiaries and other
 business units
     Cash generated from other investing activities
 Subtotal of cash generated from investing activities                  5,116,316.55          2,262,352.03
   Payments for the acquisition of fixed assets, intangible
                                                                       7,647,974.81          9,895,537.64
 assets and other long-lived assets
     Payments for investments                                         10,000,000.00          4,265,444.20
     Net increase in pledged loans granted
   Net payments for the acquisition of subsidiaries and other
 business units
     Cash used in other investing activities                                                 8,000,000.00
 Subtotal of cash used in investing activities                        17,647,974.81         22,160,981.84
 Net cash generated from/used in investing activities                -12,531,658.26        -19,898,629.81
 3. Cash flows from financing activities:
     Capital contributions received
      Including: Capital contributions by non-controlling
 interests to subsidiaries
     Borrowings obtained                                               7,000,000.00          1,800,000.00
     Net proceeds from the issuance of bonds
     Cash generated from other financing activities
 Subtotal of cash generated from financing activities                  7,000,000.00          1,800,000.00
     Repayments of borrowings                                          7,000,000.00
     Payments for interest and dividends                                813,946.55              645,225.08
     Including: Dividends          paid     by   subsidiaries   to
 non-controlling interests
     Cash used in other financing activities
 Subtotal of cash used in financing activities                         7,813,946.55             645,225.08
 Net cash generated from/used in financing activities                   -813,946.55          1,154,774.92
 4. Effect of foreign exchange rate changes on cash and cash
 equivalents
 5. Net increase in cash and cash equivalents                        -77,178,236.22        -92,003,132.65
 Add: Cash and cash equivalents, beginning of the period             687,079,639.59        325,263,654.43


25
Changchai Company, Limited                                               First Quarter Report 2019


 6. Cash and cash equivalents, end of the period        609,901,403.37        233,260,521.78


Legal representative: Shi Xinkun                                 General manager: Zhang Xin

Head of the Company’s financial department: Jiang He




26
Changchai Company, Limited                                                            First Quarter Report 2019


6. Cash Flow Statement of the Company as the Parent

                                                                                                  Unit: RMB
                                Item                                 Q1 2019                Q1 2018
 1. Cash flows from operating activities:
     Proceeds from sale of commodities and rendering of services     350,605,925.78        383,944,530.99
     Tax rebates                                                      10,449,706.25         14,412,296.14
     Cash generated from other operating activities                    2,573,315.54          2,985,456.36
 Subtotal of cash generated from operating activities                363,628,947.57        401,342,283.49
     Payments for commodities and services                           321,914,661.45        360,203,288.81
     Cash paid to and for employees                                   74,643,724.56         80,778,231.12
     Taxes paid                                                        4,780,770.52          6,738,039.59
     Cash used in other operating activities                          20,159,658.65         20,149,380.94
 Subtotal of cash used in operating activities                       421,498,815.18        467,868,940.46
 Net cash generated from/used in operating activities                -57,869,867.61        -66,526,656.97
 2. Cash flows from investing activities:
     Proceeds from disinvestment
     Return on investment
   Net proceeds from the disposal of fixed assets, intangible
                                                                        984,535.95               16,700.00
 assets and other long-lived assets
   Net proceeds from the disposal of subsidiaries and other
 business units
     Cash generated from other investing activities
 Subtotal of cash generated from investing activities                   984,535.95               16,700.00
   Payments for the acquisition of fixed assets, intangible assets
                                                                       5,500,496.74          8,205,480.04
 and other long-lived assets
     Payments for investments                                         10,000,000.00
   Net payments for the acquisition of subsidiaries and other
 business units
     Cash used in other investing activities
 Subtotal of cash used in investing activities                        15,500,496.74          8,205,480.04
 Net cash generated from/used in investing activities                -14,515,960.79          -8,188,780.04
 3. Cash flows from financing activities:
     Capital contributions received
     Borrowings obtained
     Net proceeds from the issuance of bonds



27
Changchai Company, Limited                                                                  First Quarter Report 2019


     Cash generated from other financing activities
 Subtotal of cash generated from financing activities
     Repayments of borrowings
     Payments for interest and dividends                                    558,794.31                375,425.98
     Cash used in other financing activities
 Subtotal of cash used in financing activities                              558,794.31                375,425.98
 Net cash generated from/used in financing activities                       -558,794.31              -375,425.98
 4. Effect of foreign exchange rate changes on cash and cash
 equivalents
 5. Net increase in cash and cash equivalents                            -72,944,622.71          -75,090,862.99
 Add: Cash and cash equivalents, beginning of the period                 651,854,206.79          272,064,464.71
 6. Cash and cash equivalents, end of the period                         578,909,584.08          196,973,601.72



II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases

√ Applicable □ Not applicable
Consolidated balance sheet
                                                                                                        Unit: RMB
                      Item                         31 December 2018      1 January 2019          Adjustment
 Current assets:
     Monetary capital                                   800,960,036.69     800,960,036.69
     Settlement reserve
     Interbank loans granted
     Trading financial assets                             N/A
   Financial assets at fair value through
                                                                              N/A
 profit or loss
     Derivative financial assets
     Notes and accounts receivable                      874,229,941.58     874,229,941.58
       Including: Notes receivable                      495,370,782.47     495,370,782.47
                   Accounts receivable                  378,859,159.11     378,859,159.11
     Prepayments                                         11,352,297.10      11,352,297.10
     Premiums receivable
     Reinsurance receivables


28
Changchai Company, Limited                                                           First Quarter Report 2019


     Receivable reinsurance contract reserve
     Other receivables                            9,244,584.42       9,244,584.42
       Including: Interest receivable
                    Dividends receivable
   Financial assets purchased under resale
 agreements
     Inventories                                557,953,891.70     557,953,891.70
     Contractual assets                           N/A
     Assets classified as held for sale
     Current portion of non-current assets
     Other current assets                        34,357,608.97      34,357,608.97
 Total current assets                          2,288,098,360.46   2,288,098,360.46
 Non-current assets:
     Loans and advances to customers
     Investments in debt obligations              N/A
     Available-for-sale financial assets        498,851,369.49        N/A                -498,851,369.49
     Investments in other debt obligations        N/A
     Held-to-maturity investments                                     N/A
     Long-term receivables
     Long-term equity investments
     Investments in other equity instruments      N/A              498,851,369.49         498,851,369.49
     Other non-current financial assets           N/A
     Investment property                         50,656,007.63      50,656,007.63
     Fixed assets                               511,250,371.37     511,250,371.37
     Construction in progress                    89,090,384.71      89,090,384.71
     Productive living assets
     Oil and gas assets
     Right-of-use assets                          N/A
     Intangible assets                          103,092,879.38     103,092,879.38
     R&D expense
     Goodwill
     Long-term prepaid expense
     Deferred income tax assets                     979,822.71         979,822.71
     Other non-current assets
 Total non-current assets                      1,253,920,835.29   1,253,920,835.29

29
Changchai Company, Limited                                                                First Quarter Report 2019


 Total assets                                       3,542,019,195.75   3,542,019,195.75
 Current liabilities:
     Short-term borrowings                            27,000,000.00      27,000,000.00
     Borrowings from central bank
     Interbank loans obtained
     Trading financial liabilities                     N/A
   Financial liabilities at fair value through
                                                                           N/A
 profit or loss
     Derivative financial liabilities
     Notes and accounts payable                     1,030,130,275.77   1,030,130,275.77
     Advances from customers                          34,500,232.97      34,500,232.97
   Financial assets sold under repurchase
 agreements
   Customer       deposits       and    interbank
 deposits
     Payables for acting trading of securities
     Payables for underwriting of securities
     Payroll payable                                  50,500,592.99      50,500,592.99
     Taxes payable                                     7,066,085.89       7,066,085.89
     Other payables                                  199,412,250.90     199,412,250.90
       Including: Interest payable                             0.00               0.00
                   Dividends payable                   3,891,433.83       3,891,433.83
   Handling charges and commissions
 payable
     Reinsurance payables
     Contractual liabilities                           N/A
   Liabilities directly associated          with
 assets classified as held for sale
     Current portion of non-current liabilities       18,500,000.00      18,500,000.00
     Other current liabilities                         2,082,985.18       2,082,985.18
 Total current liabilities                          1,369,192,423.70   1,369,192,423.70
 Non-current liabilities:
     Insurance contract reserve
     Long-term borrowings                              2,000,000.00       2,000,000.00
     Bonds payable
       Including: Preferred shares


30
Changchai Company, Limited                                                               First Quarter Report 2019


                     Perpetual bonds
     Lease liabilities                              N/A
     Long-term payables
     Long-term payroll payable
     Provisions
     Deferred income                               59,928,484.84         59,928,484.84
     Deferred income tax liabilities               47,971,780.36         47,971,780.36
     Other non-current liabilities
 Total non-current liabilities                    109,900,265.20       109,900,265.20
 Total liabilities                              1,479,092,688.90      1,479,092,688.90
 Owners’ equity:
     Share capital                                561,374,326.00       561,374,326.00
     Other equity instruments
       Including: Preferred shares
                     Perpetual bonds
     Capital reserves                             164,328,665.43       164,328,665.43
     Less: Treasury stock
     Other comprehensive income                   264,405,675.00       264,405,675.00
     Specific reserve                              15,182,958.83         15,182,958.83
     Surplus reserves                             320,133,050.15       320,133,050.15
     General reserve
     Retained earnings                            717,883,351.33       717,883,351.33
 Total equity attributable to owners of the
                                                2,043,308,026.74      2,043,308,026.74
 Company as the parent
 Non-controlling interests                         19,618,480.11         19,618,480.11
 Total owners’ equity                          2,062,926,506.85      2,062,926,506.85
 Total liabilities and owners’ equity          3,542,019,195.75      3,542,019,195.75
Notes to adjustment
     The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedge Accounting and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments in 2017, and required all
domestically listed companies to implement since 1 January 2019. In accordance with the provisions of the
standards, as for the financial instruments not derecognized as of the implementation date, retrospective
adjustment shall be made when the recognition and measurement before the revision don’t conform to the
requirements of the revised standards. It is unnecessary to make adjustment when data of previous comparative
financial statements don’t conform to the requirements of the revised standards.

31
Changchai Company, Limited                                                                  First Quarter Report 2019


     The Company starts to carry out the new financial instrument standards since 1 January 2019, and classifies
the financial assets originally recorded in available-for-sale financial assets into financial assets at fair value
through other comprehensive income which will be presented as investment in other equity instruments in
financial statements.



Balance sheet of the Company as the parent
                                                                                                        Unit: RMB
                   Item                  31 December 2018           1 January 2019             Adjustment
 Current assets:
     Monetary capital                        759,404,219.72             759,404,219.72
     Trading financial assets                  N/A
    Financial assets at fair value
                                                                         N/A
 through profit or loss
     Derivative financial assets
     Notes and accounts receivable           790,877,079.72             790,877,079.72
       Including: Notes receivable           490,519,795.91             490,519,795.91
                    Accounts
                                             300,357,283.81             300,357,283.81
 receivable
     Prepayments                                4,768,038.11               4,768,038.11
     Other receivables                        21,681,331.85              21,681,331.85
      Including: Interest
                                                        0.00                         0.00
 receivable
                    Dividends
                                                        0.00                         0.00
 receivable
     Inventories                             437,423,195.46             437,423,195.46
     Contractual assets                        N/A
   Assets classified as held for
 sale
   Current portion of non-current
 assets
     Other current assets                     23,099,858.67              23,099,858.67
 Total current assets                       2,037,253,723.53          2,037,253,723.53
 Non-current assets:
   Investments in debt
                                               N/A
 obligations
   Available-for-sale        financial
                                             470,940,000.00              N/A                    -470,940,000.00
 assets


32
Changchai Company, Limited                                                    First Quarter Report 2019


   Investments in other debt
                                           N/A
 obligations
     Held-to-maturity investments                            N/A
     Long-term receivables
     Long-term equity investments        241,752,730.03     241,752,730.03
    Investments in other equity
                                           N/A              470,940,000.00         470,940,000.00
 instruments
   Other non-current financial
                                           N/A
 assets
     Investment property                  50,656,007.63      50,656,007.63
     Fixed assets                        413,186,680.19     413,186,680.19
     Construction in progress             87,007,215.91      87,007,215.91
     Productive living assets
     Oil and gas assets
     Right-of-use assets                   N/A
     Intangible assets                    72,184,608.63      72,184,608.63
     R&D expense
     Goodwill
     Long-term prepaid expense
     Deferred income tax assets              930,641.19         930,641.19
     Other non-current assets
 Total non-current assets               1,336,657,883.58   1,336,657,883.58
 Total assets                           3,373,911,607.11   3,373,911,607.11
 Current liabilities:
     Short-term borrowings                10,000,000.00      10,000,000.00
     Trading financial liabilities         N/A
   Financial liabilities at fair
                                                             N/A
 value through profit or loss
     Derivative financial liabilities
     Notes and accounts payable          987,550,797.44     987,550,797.44
     Advances from customers              32,072,387.55      32,072,387.55
     Contractual liabilities               N/A
     Payroll payable                      43,597,759.22      43,597,759.22
     Taxes payable                         2,443,767.89       2,443,767.89
     Other payables                      185,022,961.56     185,022,961.56


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Changchai Company, Limited                                                   First Quarter Report 2019


       Including: Interest payable                0.00
                     Dividends
                                          3,243,179.97       3,243,179.97
 payable
    Liabilities directly associated
 with assets classified as held for
 sale
    Current portion of non-current
                                         18,500,000.00      18,500,000.00
 liabilities
     Other current liabilities
 Total current liabilities             1,279,187,673.66   1,279,187,673.66
 Non-current liabilities:
     Long-term borrowings
     Bonds payable
       Including: Preferred shares
                     Perpetual bonds
     Lease liabilities                    N/A
     Long-term payables
     Long-term payroll payable
     Provisions
     Deferred income                     59,928,484.84      59,928,484.84
     Deferred income tax liabilities     46,659,825.00      46,659,825.00
     Other non-current liabilities
 Total non-current liabilities          106,588,309.84     106,588,309.84
 Total liabilities                     1,385,775,983.50   1,385,775,983.50
 Owners’ equity:
     Share capital                      561,374,326.00     561,374,326.00
     Other equity instruments
       Including: Preferred shares
                     Perpetual bonds
     Capital reserves                   183,071,147.70     183,071,147.70
     Less: Treasury stock
     Other comprehensive income         264,405,675.00     264,405,675.00
     Specific reserve                    15,182,958.83      15,182,958.83
     Surplus reserves                   320,133,050.15     320,133,050.15
     Retained earnings                  643,968,465.93     643,968,465.93



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Changchai Company, Limited                                                                  First Quarter Report 2019


 Total owners’ equity                     1,988,135,623.61            1,988,135,623.61
 Total liabilities    and    owners’
                                           3,373,911,607.11            3,373,911,607.11
 equity
Notes to adjustment
     The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedge Accounting and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments in 2017, and required all
domestically listed companies to implement since 1 January 2019. In accordance with the provisions of the
standards, as for the financial instruments not derecognized as of the implementation date, retrospective
adjustment shall be made when the recognition and measurement before the revision don’t conform to the
requirements of the revised standards. It is unnecessary to make adjustment when data of previous comparative
financial statements don’t conform to the requirements of the revised standards.
     The Company starts to carry out the new financial instrument standards since 1 January 2019, and classifies
the financial assets originally recorded in available-for-sale financial assets into financial assets at fair value
through other comprehensive income which will be presented as investment in other equity instruments in
financial statements.

2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
Standards Governing Financial Instruments or Leases

□ Applicable √ Not applicable

III Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.




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