The First Quarterly Report 2010 of Changchai Company Limited
1
CHANGCHAI COMPANY, LIMITED
THE FIRST QUARTERLY REPORT FOR YEAR 2010
§1 Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and senior
executives of the Changchai Company, Limited (hereinafter referred to as the Company)
warrant that this report does not contain any false or misleading statements or omit any
material facts and all information set forth herein are true, accurate and complete.
1.2 None of the directors, supervisors, senior management staffs demonstrated uncertainty
or disagreement about the truthfulness, accuracy, and completeness of this quarterly report.
1.3 All directors of the Company attended the Board meeting.
1.4 The first quarterly financial report has not been audited.
1.5 Person in charge of the Company Mr. Xue guojun, person in charge of the accounting
Mr. He Jianguang and person in charge of accounting organizations Mr. Jiang He hereby
confirm that the Financial Report enclosed in the Quarterly Report is true and complete.
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: RMB
As at 31 Mar. 2010 As at 31 Dec. 2009
Increase/decrease
(%)
Total assets 3,019,331,501.89 2,940,087,431.89 2.70
Owners’ equity (shareholders’
equity)
1,879,223,887.47 1,797,529,734.74 4.54
Share capital 561,374,326.00 561,374,326.00 0.00
Net assets per share 3.35 3.20 4.69
Jan.-Mar. 2010 Jan.-Mar. 2009
Increase/decrease
(%)
Total sales 769,300,023.37 623,404,066.93 23.40
Net profit 39,894,552.73 33,923,390.49 17.60
Net cash flow arising from
operating activities
-4,050,892.81 176,366,986.69 -102.30
Net cash flow per share arising
from operating activities
-0.01 0.47 -102.13
Basic earnings per share 0.07 0.09 -22.22
Diluted earnings per share 0.07 0.09 -22.22
Return on equity (%) 2.12 2.58 Down 0.46
Return on equity after deducting
extraordinary gains and losses(%)
2.54 1.59 Up 0.95The First Quarterly Report 2010 of Changchai Company Limited
2
Items of extraordinary gains and losses
Unit: RMB
Explanation on significant items of non-recurring gains and losses
Naught
2.2 Total number of shareholders as at the end of reporting period and shares held by the
top ten shareholders not subject to trading moratorium
Unit: Share
Total shareholders at the end
of report period 119017
Shares held by the top ten tradable shareholders
Name of shareholder (full name)
Number of shares not
subject to trading
moratorium
Type of share
1. State-owned Assets Supervision &
Management Committee of Changzhou
Municipal People's Government
168,497,736 Renminbi Ordinary Shares
2. Beijing Zhongji Hongli Assets
Management Co., Ltd
977,690 Renminbi Ordinary Shares
3. NORGES BANK 898,350 Domestically listed foreign shares
4. Li Tao 838,391 Domestically listed foreign shares
5. Yu Xiaoping 790,000 Domestically listed foreign shares
6. Ma Zeqi 712,500 Domestically listed foreign shares
7. Shenzhen Huarong Century Investment
Co., Ltd
640,250 Renminbi Ordinary Shares
8. NIHK-CUSTOMERS’ SEGREGATED
ACCOUNT
582,000 Domestically listed foreign shares
9. Shanghai Hongkong Wanguo Securities 568,490 Domestically listed foreign shares
10. Zhou Nan 528,241 Renminbi Ordinary Shares
§3 Significant Events
3.1 Particular about large-margin change of main accounting statement item and financial
index and its reason
√Applicable □Inapplicable
1. Receivable accounts increased71.45% over the year-begin, mainly because the Company
sold goods on credit appropriately in the 1st quarter of 2009 according to agreement and plan
to extend market.
2. Inventories reduced 40.14% over the year-begin, mainly because some inventories
Items of extraordinary gains and losses
Amount from the year-begin to
the end of reporting period
Net non-operating income and expenses 461,181.07
Impact on income tax -8,320,558.36
Total -7,859,377.29The First Quarterly Report 2010 of Changchai Company Limited
3
prepared for this quarter has been sold out in this period.
3、Account received in advance increased 66.54% over the year-begin, because the Company
prepaid the part of payment for goods due to upward tendency in the price of raw materials.
4. Other accounts payable increased 42.43% over the year-begin, because the Company
proposed sales favor in advance according to marketing policy of the Company.
5. Investment income decreased over the year-begin, because the Company sold 4,500,000
shares of Foton Motor held and gained RMB 14.71 million at the same period of last year.
3.2 The progress and influence of significant events and the analysis and explanation on
resolving proposal
□Applicable √Inapplicable
3.3 The fulfillment of the commitment made by the Company, shareholders and the actual
controller
√Applicable □Inapplicable
Commitments Promisee Content of commitments Implementation
Commitment made when share
merger reform
State-owned Assets
Supervision and
Administration
Commission of
Changzhou Municipal
People’s Government
1. No trading and transfer may be taken within
12 months as of the date when the share
merger reform was implemented.
2. After expiration of the aforesaid
undertaking, original non-tradable shares
could be sold through listing and trading on
Shenzhen Stock Exchange, but proportion of
number of shares in total shares of the
Company shall not exceed 5 percent within 12
months, as well as not exceed 10 percent
within 24 months.
The
Committment
has been
implemented.
Commitment concerning share
trading moratorium
Inapplicable
Commitment in the acquisition
report or the report on equity
changes
Inapplicable
Commitment made in the significant
asset reorganization
Inapplicable
Commitment made in the issuance Inapplicable
Other commitments (including
supplementary ones)
Inapplicable
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made
during the period from the beginning of the year to the end of the next report period
compared with the same period of the last year according to prediction, as well as
explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Whether there is the capital provided by the Company to the controlling shareholders
or other related parties, or external guarantee in violation of established procedureThe First Quarterly Report 2010 of Changchai Company Limited
4
□Applicable √Inapplicable
3.5.2 Plan to the Share Holdings proposed or implemented by the shareholders holding
over 30% equities of the Company in the reporting period
□Applicable √Inapplicable
3.5.3 Securities investment
√Applicable □Inapplicable
Unit: RMB Yuan
No.
Type of
securities
Securities
code
Short form
of securities
Initial
investment
amount
(Yuan)
Holding
number
Book value in
period-end
Proportion of
total securities
in period-end
(%)
Gains/losses in
the report period
1 Stock 002384
Dongshan
Precision
13,000.00 500 13,000.00 100.00% 0.00
Other securities investments held in period-end 0.00 - 0.00 0.00 -
Securities investment gain/loss sold out in the
period
- - - - -
Total 13,000.00 500 13,000.00 100.00% 0.00
3.5.4 Equity of other listed companies held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Stock code
Short form of
stock
Initial
investment
amount
Equity
proportion
in that of
this
company
Book value at
the period-end
Profit and
loss in the
report
period
Change in the
owners’ equity
in the report
period
Subject for
accounting
calculation
Source of
shares
600166 Foton Motor 41,784,000.00 3.94% 737,311,250.00 0 32,873,750.00
Financial ass
ets available
for sale
Exchange
assets of
Changcha
i Group
in 1999
600377
Ninghu
Expressway
90,500.00 403,000.00 0 46,000.00
Financial ass
ets available
for sale
Agreeme
nt
transfer
Total 41,874,500.00 737,714,250.00 0 32,919,750.00
3.5.5Equity of non-listed financial enterprises held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Name
Initial
investment
amount
Number of
shares held
Equity
proportion
in that of
this
company
Book value at
the
period-end
Profit and
loss in the
report
period
Change in the
owners’
equity in the
report period
Subject for
accounting
calculation
Source of
sharesThe First Quarterly Report 2010 of Changchai Company Limited
5
Bank of
Jiangsu
38,000,000.00 38,000,000 0.48% 38,000,000.00 0.00 0.00
long-term
equity
investment
sponsor
shares
Total 38,000,000.00 38,000,000 - 38,000,000.00 0.00 0.00 - -
3.5.6 Significant Contract in the reporting period
□Applicable √Inapplicable
3.5.7 Particulars about reception of researches, communications and interviews in the
report period
□Applicable √Inapplicable
3.6 Investment on derivative products
□Applicable √Inapplicable
3.6.1 Quantity of invested derivative products at the period-end
□Applicable √InapplicableThe First Quarterly Report 2010 of Changchai Company Limited
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§ 4 Attachments
4.1 Balance Sheet
Prepared by Changchai Company, Limited 31 Mar. 2010 Unit: RMB Yuan
Amount at the period-end Amount at the period-begin
Items
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 762,877,782.33 700,921,960.80 770,721,154.44 732,773,854.30
Settlement fund reserve
Dismantle fund
Transaction financial asset 13,000.00
Notes receivable 47,452,686.28 46,522,686.28 83,834,240.00 76,174,240.00
Account receivable 438,333,011.81 396,191,307.69 255,668,271.46 218,589,252.04
Account paid in advance 27,467,765.46 24,421,507.80 23,512,432.19 24,502,835.32
Premium receivables
Receivables from reinsures
Reinsurance contract reserve
receivables
Interest receivable
Other account receivable 12,257,376.99 10,904,995.36 15,656,250.31 14,418,443.89
Financial assets purchased
under agreements to resell
Inventories 221,731,638.91 169,299,003.48 370,423,764.66 312,897,677.55
Non-current assets due
within 1 year
Other current assets 95,087.13 133,419.55
Total current assets 1,510,228,348.91 1,348,261,461.41 1,519,949,532.61 1,379,356,303.10
Non-current assets:
Loans and advance
Available for sale financial
assets
737,714,250.00 737,714,250.00 688,538,250.00 688,538,250.00
Held to maturity investments 10,000,000.00
Long-term account
receivable
Long-term equity
investment
60,708,368.14 142,048,168.14 60,708,368.14 112,048,168.14
Investing property 69,978,989.63 69,978,989.63 70,531,074.83 70,531,074.83
Fixed asset 425,392,808.31 370,064,684.55 430,555,693.45 374,070,571.63
Project in construction 101,969,831.51 101,794,189.31 65,803,686.54 65,543,304.34
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 102,756,397.07 100,488,546.67 103,418,318.00 101,134,909.93The First Quarterly Report 2010 of Changchai Company Limited
7
Development expense
Goodwill
Long-term expense to be
apportioned
Deferred tax assets 582,508.32 582,508.32 582,508.32 582,508.32
Other non-current assets
Total of non-current assets 1,509,103,152.98 1,522,671,336.62 1,420,137,899.28 1,412,448,787.19
Total of assets 3,019,331,501.89 2,870,932,798.03 2,940,087,431.89 2,791,805,090.29
Current liabilities:
Short-term borrowings 41,500,000.00 41,500,000.00
Borrowing from Central
Bank
Deposits and due to banks
and other financial
institutions
Placements from banks and
other financial institutions
Transaction financial
liabilities
Notes payable 346,464,400.00 316,280,000.00 323,666,300.00 294,380,000.00
Account payable 357,783,222.11 323,352,013.56 459,360,350.72 422,014,864.70
Account received in
advance
63,105,889.37 62,158,479.39 37,892,215.77 36,868,917.59
Financial assets sold under
agreements to repurchase
Handling charges and
commission payable
Employee’s compensation
payable
7,742,989.81 4,163,512.12 49,743,183.62 44,412,398.41
Tax payable -3,832,563.34 -118,798.72 -6,934,188.05 -1,294,677.52
Interest payable
Other account payable 3,891,433.83 3,243,179.97 3,891,433.83 3,243,179.97
Dividend payable 169,676,995.98 171,525,509.62 119,130,766.55 120,169,477.26
Due to reinsures
Insurance contract reserve
Customer deposits
Amount payables under
security underwriting
Non-current liabilities due
within 1 year
Other current liabilities 1,239,236.11 334,297.88
Total current liabilities 987,571,603.87 880,603,895.94 1,028,584,360.32 919,794,160.41
Non-current liabilities:
Long-term borrowings 30,000,000.00 30,000,000.00The First Quarterly Report 2010 of Changchai Company Limited
8
Debentures payable
Long-term payables
Specific purpose account
payables
Provisions for contingent
liabilities
Deferred tax liabilities 104,375,962.50 104,375,962.50 96,999,562.50 96,999,562.50
Other non-current liabilities 6,935,000.00 6,935,000.00 6,060,000.00 6,060,000.00
Total non-current liabilities 141,310,962.50 141,310,962.50 103,059,562.50 103,059,562.50
Total liabilities 1,128,882,566.37 1,021,914,858.44 1,131,643,922.82 1,022,853,722.91
Owner’s equity
Share capital 561,374,326.00 561,374,326.00 561,374,326.00 561,374,326.00
Capital surplus 764,828,911.26 774,508,097.45 723,029,311.26 732,708,497.45
Less: Treasury Stock
Reserved fund 262,059,351.41 262,059,351.41 262,059,351.41 262,059,351.41
General risk provision 251,066,746.07 212,809,192.52
Retained earnings 290,961,298.80 251,076,164.73
Foreign exchange difference
Total owners' equity
attributable to holding
company
1,879,223,887.47 1,849,017,939.59 1,797,529,734.74 1,768,951,367.38
Minority interest 11,225,048.05 10,913,774.33
Total owner’s equity 1,890,448,935.52 1,849,017,939.59 1,808,443,509.07 1,768,951,367.38
Total liabilities and owner’s
equity
3,019,331,501.89 2,870,932,798.03 2,940,087,431.89 2,791,805,090.29The First Quarterly Report 2010 of Changchai Company Limited
9
4.2 Income Statement
Prepared by Changchai Company, Limited Jan.-Mar. 2010 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 769,300,023.37 779,323,914.51 623,404,066.93 646,619,794.64
Including: Sales 769,300,023.37 779,323,914.51 623,404,066.93 646,619,794.64
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 721,242,034.23 733,633,973.75 602,423,773.29 623,347,762.12
Including: Cost of sales 652,544,129.35 671,856,978.23 556,267,223.99 582,625,411.77
Interests expenses
Handling charges and
commission expenses
Claim expenses-net
Provision for insurance
liability reserve
Expenses for reinsurance
accepted
Payments on surrenders
Policyholder dividends
Taxes and associate charges 51,870.10 32,212.93
Selling and distribution
expenses
23,605,574.48 20,999,506.99 21,296,915.14 20,636,519.28
Administrative expenses 44,857,602.26 41,361,204.77 26,501,942.64 22,836,588.64
Financial expense 182,858.04 -583,716.24 -1,674,521.41 -2,750,757.57
Impairment loss
Add: gain/(loss) from change
in fair value (“-” means loss)
Gain/(loss) from investment
(“-” means loss)
7,214.60 14,709,375.00 14,709,375.00
Including: income form
investment on affiliated
enterprise and jointly
enterprise
Foreign exchange difference
(“-” means loss)
III. Business profit (“-”
means loss)
48,065,203.74 45,689,940.76 35,689,668.64 37,981,407.52
Add: non-business income 2,471,450.22 2,297,352.49 4,553,275.43 1,875,690.50
Less: non-business expense 2,010,269.15 1,939,353.55 2,587,956.77 2,515,541.63
Including: loss from
non-current asset disposalThe First Quarterly Report 2010 of Changchai Company Limited
10
IV. Total profit (“-” means
loss)
48,526,384.81 46,047,939.70 37,654,987.30 37,341,556.39
Less: Tax expense 8,320,558.36 7,780,967.49 3,677,343.75 3,677,343.75
V. Net profit (“-” means
loss)
40,205,826.45 38,266,972.21 33,977,643.55 33,664,212.64
Attributable to parent
company
39,894,552.73 38,266,972.21 33,923,390.49 33,664,212.64
Minority interest 311,273.72 54,253.06
VI. Earnings per share
(I) basic earnings per share 0.07 0.09
(II) diluted earnings per
share
0.07 0.09
VII. Other consolidated
income
VIII. Total consolidated
income
40,205,826.45 38,266,972.21 33,977,643.55 33,664,212.64
Total consolidated income
attributable to owners of
parent company
39,894,552.73 38,266,972.21 33,923,390.49 33,664,212.64
Total consolidated income
attributable to minority
shareholders
311,273.72 54,253.06
4.3 Cash Flow Statement
Prepared by Changchai Company, Limited Jan.- Mar. 2010 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
1. Cash flows for operating
activities:
Cash received from sales of
goods or rending of services
731,548,900.94 730,827,206.89 725,882,550.39 709,078,803.47
Cash received on deposits
and from banks and other
financial institutions
Net increased cash received
on borrowings from central
bank
Cash received on placements
from other financial
institutions
Premium received
Cash received from
reinsurance
Net increased amountThe First Quarterly Report 2010 of Changchai Company Limited
11
received on policyholder
deposit and investment
Cash received from disposal
of held for trading financial
assets
Interests, handling charges
and commission received
Cash received on placements
from bank, net
Cash received under
repurchasing, net
Refund of tax and fare
received
2,402,342.35
Other cash received relating
to operating activities
4,264,889.64 4,126,789.34 3,757,117.69 3,632,949.79
Sub-total of cash inflows 735,813,790.58 734,953,996.23 732,042,010.43 712,711,753.26
Cash paid for goods and
services
646,286,674.02 647,052,618.19 497,890,362.12 500,715,993.20
Loans and advances drawn
Cash paid to central bank,
banks and other financial
institutions, net
Claims paid
Interests, handling charges
and commission paid
Dividends paid to
policyholders
Cash paid to and on behalf of
employees
63,004,883.51 58,217,839.57 44,790,369.84 40,282,634.22
Tax and fare paid 11,548,555.19 10,141,395.44 2,202,793.17 1,432,473.98
Other cash paid relating to
operating activities
19,024,570.67 18,554,580.67 10,791,498.61 10,586,583.96
Sub-total of cash outflows 739,864,683.39 733,966,433.87 555,675,023.74 553,017,685.36
Net cash flow from operating
activities
-4,050,892.81 987,562.36 176,366,986.69 159,694,067.90
2. Cash Flows from
Investment Activities:
Cash received from return of
investments
Cash received from
investment income
7,214.60 14,709,375.00 14,709,375.00
Net cash received from
disposal of fixed assets,
intangible assets and other
long-term assets
745,280.23 745,280.23 98,254.30 98,254.30The First Quarterly Report 2010 of Changchai Company Limited
12
Proceeds from sale of
subsidiaries and other
operating units
Other cash received relating
to investment activities
Sub-total of cash inflows 752,494.83 745,280.23 14,807,629.30 14,807,629.30
Cash paid for acquiring fixed
assets, intangible assets and
other long-term assets
32,890,003.49 32,355,504.48 33,727,894.09 32,635,950.69
Cash paid for acquiring
investments
30,000,000.00
Net cash used in loans
Net cash used in acquiring
subsidiaries and other
operating units
Other cash paid relating to
investment activities
Sub-total of cash outflows 32,890,003.49 62,355,504.48 33,727,894.09 32,635,950.69
Net cash flow from investing
activities
-32,137,508.66 -61,610,224.25 -18,920,264.79 -17,828,321.39
3. Cash Flows from
Financing Activities:
Cash received from
absorbing investment
Including: Cash received
from increase in minority
interest
Cash received from
borrowings
35,000,000.00 30,000,000.00 25,500,000.00 20,000,000.00
Cash received from issuing
debentures
Other proceeds relating to
financing activities
Sub-total of cash inflows 35,000,000.00 30,000,000.00 25,500,000.00 20,000,000.00
Cash paid for settling debt 5,000,000.00 5,500,000.00
Cash paid for distribution of
dividends or profit or
reimbursing interest
1,654,970.64 1,229,231.61 1,796,590.69 1,221,538.50
Including: dividends or profit
paid to minority interest
Other cash payments relating
to financing activities
Sub-total of cash outflows 6,654,970.64 1,229,231.61 7,296,590.69 1,221,538.50
Net cash flow from financing
activities
28,345,029.36 28,770,768.39 18,203,409.31 18,778,461.50The First Quarterly Report 2010 of Changchai Company Limited
13
4. Effect of foreign exchange
rate changes
5. Increase in cash and cash
equivalents
-7,843,372.11 -31,851,893.50 175,650,131.21 160,644,208.01
Add : Cash and cash
equivalents at year-begin
770,721,154.44 732,773,854.30 402,778,967.15 378,820,707.08
6.Cash and cash equivalents
at the end of the year
762,877,782.33 700,921,960.80 578,429,098.36 539,464,915.09
4.4 Auditor’s report
Audit opinion: Unaudited
Board of Directors of
Changchai Company, Limited
Apr.23,2010
