CHANGCHAI COMPANY, LIMITED
SEMI-ANNUAL REPORT 2012
August 2012
1
I. Important Notes
The Board of Directors, the Supervisory Committee as well as Directors, Supervisors and Senior
Executives of 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 shall
take individual and joint responsibility for the factuality, accuracy and completeness of the contents
of this report.
Director He jianguang、Lu Jiangxiang、Zhu Jianming from the Board meeting due to some reasons,
and respectively entrusted Director Shi Jianchun 、Xu Zhenping、Shen Ningwu to vote on his
behalf.
The financial statements for the first half of 2012 have not been audited by a CPAs firm.
Mr. Xue Guojun, company principal, Mr. He Jianguang, head of the accounting work, and Mr. Jiang
He, head of the accounting department (chief of accounting) hereby confirm that the financial
statements enclosed in this report are true and complete.
English Translation for Reference Only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
2
II. Company Profile
（I）Basic information
A-share code 000570 B-share code 200570
A-share abbreviation Su Changchai A B-share abbreviation Su Changchai B
Stock exchange listed with Shenzhen Stock Exchange
Legal Chinese name of the Company 常柴股份有限公司
Abbr. of the legal Chinese name of the
Company
Legal English name of the Company CHANGCHAI COMPANY,LIMITED
Abbr. of the legal English name of the
CHANGCHAI CO.,LTD.
Company
Legal representative of the Company Xue Guojun
Registered address No. 123, Huaide Middle Road, Changzhou, Jiangsu
Postal code for the registered address 213002
Office address No. 123, Huaide Middle Road, Changzhou, Jiangsu
Postal code for the office address 213002
Internet website of the Company http：//www.changchai.com.cn
Email address cctqm@public.cz.js.cn
（II）For contact
Secretary to the Board of Directors Securities Affairs Representative
Name Shi Jianchun He Jianjiang
No. 123, Huaide Middle Road, No. 123, Huaide Middle Road,
Contact address
Changzhou, Jiangsu Changzhou, Jiangsu
Tel. （86）519-86610041 （86）519-68683155
Fax （86）519-86630954 （86）519-86630954
E-mail ccsjc@changchai.com cchjj@changchai.com
（III）About information disclosure and where the semi-annual report is placed
Newspapers designated by the Company
Securities Times, Ta Kung Pao
for information disclosure
Internet website designated by CSRC for
http：//www.cninfo.com.cn
disclosing the semi-annual report
Where the semi-annual report is placed Secretariat of the Board
3
III. Summary of Financial Highlights and Business Highlights
（I）Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
□Yes √No
Major accounting data
Reporting period
Major accounting data Same period of last year Increase/decrease (%)
(Jan.-Jun.)
Gross operating revenues (RMB Yuan) 1,599,480,212.75 1,702,548,109.24 -6.05
Operating profit (RMB Yuan) 31,197,735.95 40,931,592.25 -23.78
Total profit (RMB Yuan) 35,528,457.99 47,558,149.99 -25.29
Net profit attributable to shareholders of the
29,802,438.47 37,156,614.70 -19.79
Company (RMB Yuan)
Net profit attributable to shareholders of the
Company after deducting non-recurring gains and 25,424,883.61 31,604,115.97 -19.55
losses (RMB Yuan)
Net cash flow from operating activities (RMB Yuan) 207,869,158.63 -48,652,001.52 ——
As at the end of this
As at the end of last year Increase/decrease (%)
reporting period
Total assets (RMB Yuan) 3,083,920,367.41 2,870,088,394.73 7.45
Owners’ equity attributable to shareholders of the
1,854,820,864.26 1,742,701,667.71 6.43
Company (RMB Yuan)
Share capital (share) 561,374,326.00 561,374,326.00 0.00
Major financial indexes
Reporting period
Major financial indexes Same period of last year Increase/decrease (%)
(Jan.-Jun.)
Basic EPS (RMB Yuan/share) 0.05 0.07 -28.57
Diluted EPS (RMB Yuan/share) 0.05 0.07 -28.57
Basic EPS after deducting non-recurring gains and
0.05 0.06 -16.67
losses (RMB Yuan/share)
Fully diluted ROE（%） 1.61 1.95 -0.34
Weighted average ROE（%） 1.66 1.87 -0.21
Fully diluted ROE after deducting non-recurring
1.37 1.66 -0.29
gains and losses（%）
Weighted average ROE after deducting non-recurring
1.41 1.59 -0.18
gains and losses（%）
Net cash flow per share from operating activities
0.37 -0.09 ——
(RMB Yuan/share)
As at the end of this As at the end of last year Increase/decrease (%)
4
reporting period
Net assets per share attributable to shareholders of the
3.30 3.10 6.45
Company (RMB Yuan/share)
Liability/asset ratio（%） 39.40 38.80 0.6
（II）Accounting data differences under the domestic and overseas accounting standards
1. Net profit and net asset differences between financial reports disclosed according to the international and
Chinese accounting standards respectively
√Applicable □Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of the Owners’ equity attributable to shareholders of
Company the Company
Reporting period Same period of last year Closing amount Opening amount
As per Chinese accounting
29,802,438.47 37,156,614.70 1,854,820,864.26 1,742,701,667.71
standards
Items and amounts adjusted according to international accounting standards:
As per international
29,802,438.47 37,156,614.70 1,854,820,864.26 1,742,701,667.71
accounting standards
2. Net profit and net asset differences between financial reports disclosed according to the overseas and Chinese accounting
standards respectively
□ Applicable √Inapplicable
Unit: RMB Yuan
Net profit attributable to shareholders of the Owners’ equity attributable to shareholders of
Company the Company
Reporting period Same period of last year Closing amount Opening amount
As per Chinese accounting
29,802,438.47 37,156,614.70 1,854,820,864.26 1,742,701,667.71
standards
Items and amounts adjusted according to international accounting standards:
As per international
29,802,438.47 37,156,614.70 1,854,820,864.26 1,742,701,667.71
accounting standards
（III）Items of non-recurring gains and losses
√Applicable □Inapplicable
Item Amount (RMB Yuan) Note
Including: net income of RMB
Gains and losses on disposal of non-current assets 2,454,786.74 2,454,786.74 from fixed asset
disposal
5
Tax rebate, reduction or exemption due to un-authorized approval or
the lack of formal approval documents
Government grants recognized in the current year, except for those
acquired in the ordinary course of business or granted at certain quotas 1,600,000.00
or amounts according to the country’s unified standards
Capital occupation fees received from non-financial enterprises that are
750,000.00
included in current gains and losses
Gains generated when the investment costs of the Company’s acquiring
subsidiaries, associates and joint ventures are less than the fair value of
identifiable net assets in the investees attributable to the Company in
the acquisition of the investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or manage assets
Various asset impairment provisions due to acts of God such as natural
disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on employee
settlement and integration
Gains and losses on the parts exceeding the fair value when prices of
transactions become unfair
Net current gains and losses from the period-begin to the combination
date of subsidiaries due to business combinations under the same
control
Gains and losses on contingent matters which are irrelevant to the
normal operation of the Company
Gains and losses on fair value changes of transactional financial assets
and liabilities, and investment gains on disposal of transactional
Disposal of trading financial assets
financial assets and liabilities and available-for-sale financial assets, 230,463.19
to obtain investment returns.
except for the effective hedging business related to the Company’s
normal operation
Reversal of impairment provisions for accounts receivable which are
separately tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing properties for
which the fair value method is adopted for subsequent measurement
Current gain and loss effect due to a just-for-once adjustment to current
gains and losses according to requirements of taxation and accounting
laws and regulations
Custodian fee income from entrusted operations with the Company
6
Other non-operating incomes and expenses besides the items above 275,935.30
Other gain and loss items that meet the definition of non-recurring
gains and losses
Minority interests effects -38,906.26
Income tax effects -894,724.11
Total 4,377,554.86
Explanation given by the Company to “other gain and loss items that meet the definition of non-recurring gains and losses” and when
it recognizes a non-recurring gain and loss item as a recurring one according to the nature and features of its ordinary business
Amount involved (RMB
Item Notes
Yuan)
0
IV. Changes in Share Capital and Particulars about Shareholders
（I）Changes in share capital
1. Statement of changes of shares
□Applicable √Inapplicable
2. Changes of shares subject to trading moratorium
□Applicable √Inapplicable
（II）Issuance and listing of securities
1. Securities issues in the previous three years
□Applicable √Inapplicable
2. Changes of the Company’s share number and structure, as well as the corresponding changes in its
asset-liability structure
□Applicable √Inapplicable
3. Existing employee shares
□Applicable √Inapplicable
（III）Shareholders and actual controller
1. Total number of shareholders at the end of the reporting period
The Company had 90562 shareholders in total at the end of the reporting period.
2. Shareholding of the top ten shareholders
Particulars about shares held by the top ten shareholders
Number of Pledged or frozen shares
Name of shareholder (full Nature of Shareholding Total shares held
non-tradable Number of
name) shareholder percentage (%) at the period-end Status of shares
shares held shares
State-owned Assets State-owned 30.02 168,497,736 0
7
Supervision and corporation
Administration Commission
of Changzhou Municipal
People’s Government
Xi Yanping Domestic
0.24 1,355,131 0
natural person
Wang Zhinan Domestic
0.19 1,083,000 0
natural person
Wang Litian Domestic
0.17 960,000 0
natural person
Guotai Junan Securities Overseas
0.16 876,150 0
(Hong Kong) Limited corporation
Li Tao Domestic
0.15 838,391 0
natural person
Dai Yi Domestic
0.15 823,247 0
natural person
Sinoauto Company, Ltd. Overseas
0.15 820,000 0
corporation
Feng Yan Domestic
0.14 796,850 0
natural person
Wang Huimin Domestic
0.14 766,636 0
natural person
Explanation on particulars of shareholders
Particulars about shares held by the top ten shareholders holding tradable shares
√ Applicable □ Inapplicable
Number of tradable Type and number of shares
Name of shareholder shares held at
Type Number
period-end
State-owned Assets Supervision and
Administration Commission of Changzhou 168,497,736 A-shares 168,497,736
Municipal People’s Government
Xi Yanping 1,355,131 A-shares 1,355,131
Wang Zhinan 1,083,000 A-shares 1,083,000
Wang Litian 960,000 A-shares 960,000
Guotai Junan Securities (Hong Kong) Limited 876,150 B-shares 876,150
Li Tao 838,391 B-shares 838,391
Dai Yi 823,247 A-shares 823,247
Sinoauto Company, Ltd. 820,000 B-shares 820,000
Feng Yan 796,850 A-shares 796,850
Wang Huimin 766,636 A-shares 766,636
It is unknown whether there was any associated relationship among the top ten shareholders and among the top
ten shareholders not subject to trading moratorium, or whether they are persons acting in concert as described by
Measures for the Administrative of Disclosure of Shareholder Equity Changes.
8
Strategic investors or general legal persons becoming the top ten shareholders due to placing of new shares
□Applicable √Inapplicable
3. Controlling shareholder and actual controller
（1）Change of the controlling shareholder and actual controller
□Applicable √Inapplicable
（2）Particulars about the controlling shareholder and actual controller
Is there a new actual controller?
□ Yes √ No
State-owned Assets Supervision and Administration Commission
Name of the actual controller
of Changzhou Municipal People’s Government
Local State-owned Assets Supervision and Administration
Type of the actual controller
Commission
（3）Illustration on the relationship between the Company and its actual controller
STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION
COMMISSION OF CHANGZHOU MUNICIPAL PEOPLE’S GOVERNMENT
30.02%
CHANGCHAI COMPANY, LIMITED
（4）The actual controller controls the Company via trust or other ways of asset management.
□Applicable √Inapplicable
4. Other corporate shareholders with a shareholding over 10%
□Applicable √Inapplicable
（IV）Convertible corporate bonds
□Applicable √Inapplicable
9
V. Directors, Supervisors and Senior Management
（I）Shareholding changes of directors, supervisors and senior management
□Applicable √Inapplicable
Shares
Shares
held at
held at Reason for
Name Position Sex Age Office term at
year-begi change
year-en
n
d
Chairman of the From 17 May 2010 to 17
Xue Guojun Male 49 0 0
Board May 2013
Director, General
From 17 May 2010 to 17
He Jianguang Manager, Chief Male 48 0 0
May 2013
Engineer
From 17 May 2010 to 17
Lu Jiaxiang Director Male 57 0 0
May 2013
Director, Deputy
General Manager, From 17 May 2010 to 17
Shi Jianchun Male 50 0 0
Secretary of the May 2013
Board
Director, Deputy From 17 May 2010 to 17
Xu Zhenping Male 55 0 0
General Manager May 2013
Zhuang Director Male From 17 May 2010 to 17
68 0 0
Rongfa May 2013
Independent Director Male From 17 May 2010 to 17
Shen Ningwu 70 0 0
May 2013
Independent Director Male From 17 May 2010 to 17
Zhu Jianming 56 0 0
May 2013
Male From 17 May 2010 to 17
Cao Huiming Independent Director 63 0 0
May 2013
Deputy General From 17 May 2010 to 17
Yin Lihou Male 48 0 0
Manager May 2013
Deputy General From 17 May 2010 to 17
Xu Yi Male 48 0 0
Manager May 2013
Deputy General From 17 May 2010 to 17
Ni Shiyuan Male 56 0 0
Manager May 2013
Deputy General From 31 Dec. 2011 to 17
Liu Xiaoyun Male 50 0 0
Manager May 2013
10
Chairman of the
Supervisory From 17 May 2010 to 17
Lv Weimin Male 58 0 0
Committee, Secretary May 2013
of Party Committee
Yuan Femal From 17 May 2010 to 17
Supervisor 49 0 0
Xiaodong e May 2013
From 17 May 2010 to 17
Ni Mingliang Supervisor Male 45 0 0
May 2013
From 17 May 2010 to 17
Lu Zhonggui Supervisor Male 45 0 0
May 2013
From 17 May 2010 to 17
Wu Keyun Supervisor Male 48 0 0
May 2013
Equity incentives granted to directors, supervisors and senior management during the reporting period
□Applicable √Inapplicable
（II）Post-holding particulars
Post-holding in shareholders units
√Applicable □Inapplicable
Name of the
Receives payment
person holding any Position in the Beginning date Ending date of
Name of the shareholder unit from the shareholder
post in any shareholder unit of office term office term
unit?
shareholder unit
State-owned Assets Supervision
and Administration Commission
Lu Jiaxiang Deputy Director Jun. 2007 —— Yes
of Changzhou Municipal People’s
Government
State-owned Assets Supervision
and Administration Commission
Yuan Xiaodong Chief Officer Nov. 2005 —— Yes
of Changzhou Municipal People’s
Government
Notes to
post-holding in
shareholder units
Post-holding in other units
√Applicable □Inapplicable
Name of the
Position in other Beginning date Ending date of Receives payment
person holding any Name of other unit
unit of office term office term from other unit?
post in other units
Wuxi Fuel Injection
Zhu Jianming Institute director Mar. 2000 —— Yes
Equipment Research Institute
Notes to
post-holding in
11
other units
（III）Remuneration for directors, supervisors and senior management
Decision-making procedure for
The remuneration for the Company’s senior management was submitted to the Board for review
the remuneration of directors,
and approval after the Remuneration & Appraisal Committee under the Board making relevant
supervisors and senior
appraisal contracts.
management
Basis for determining the The annual remuneration drawn by directors, supervisors and senior management from the
remuneration of directors, Company was paid on monthly according to the relevant provisions of wage management and
supervisors and senior rank standard established by the Company, and paid bonus at the end of the year based on the
management debriefing situation made by the Staffs’ Congress of the Company and appraisal results.
Actual payment of the
remuneration of directors, During the reporting period, the company directors, supervisors, the actual payment of senior
supervisors and senior management personnel remuneration amounted to RMB390,000.
management
（IV）Change of directors, supervisors and senior management
□Applicable √Inapplicable
（V）Employees
Number of on-job employees 3194
Number of retired employees for whom the Company shall bear
0
expenses
Function structure
Type of function Number of personnel
Production 2318
Sale 243
Technical 133
Financial 33
Administration 370
Level of education
Level of education Number of personnel
Master’s degree 13
University 235
Junior college 397
High school 1043
Junior middle schools and below 1506
12
VI. Report of the Board of Directors
（I）Discussion and analysis by the management
For the first half of 2012, the Company accumulatively sold various diesel engines and power generation sets of
646,900 in number, a decrease of 7.63% year on year, including 555,400 units of single-cylinder diesel engines,
down 8.64% from a year earlier, representing 51% of the annual target; 88,700 sets of multi-cylinder diesel
engines, down 2.16% as compared with the same period of last year, representing 55% of the annual target; and
2,731 units of engine sets and power units, representing a year-on-year growth of 78.73%. It achieved export
earnings of US$ 11.36 million, down 50.18% from a year earlier. Meanwhile, it realized sales revenues of RMB
1,599,480,200, a decrease of 6.05% year on year and realized a net profit attributable to shareholders of the
Company of RMB 29,802,400, down 19.79% from a year earlier.
Despite drops in the Company’s diesel engine production and sales volumes, sales income, profit and other
indexes due to the macro-environment and the supply-demand relation in the first half of 2012, the Company as a
whole maintained a healthy and steady development trend. The production and sales volumes of single-cylinder
diesel engines decreased but remained at the top of the industry. Multi-cylinder diesel engines saw some growth in
the field of non-road vehicles such as reapers. Despite a weak automobile industry and a sharp slowdown in
growth, the Company still managed to maintain its market share in producing diesel engines for automobiles. The
technical transformation projects involving casting and machine tooling where the Company’s inputs focused
were proceeding in an orderly manner, which provided strong support for expanding the production capacity and
improving the product quality of the Company in the future.
In the reporting period, affected by the decreased sales volume and income and growing labor cost and other
factors, the achieved profit of the Company dropped to some degree on a year-on-year basis.
Is the Company’s actual business performance 20% lower or higher than any earning forecast or business plan for
the reporting period which has been publicly disclosed earlier?
□ Yes √ No
Analysis to the business and performances of the Company’s main subsidiaries and stock-participating companies:
1. With a registered capital of RMB 35 million and the Company holding 60% of its equity interests, Changchai
Wanzhou Diesel Engine Co., Ltd. is mainly engaged in production and manufacture of diesel engines. Up to 30
Jun. 2012, the total assets of the Company stood at RMB 127,879,000 and the net assets at RMB 48,111,300. And
for Jan.-Jun. 2012, the Company achieved sales income of RMB 61,004,700 and net profit of RMB 1,409,500.
2. With a registered capital of RMB 33,786,400 and the Company holding 75% of its equity interests, Changchai
Benniu Diesel Engine Fittings Co., Ltd. is mainly engaged in production and manufacture of diesel engine fittings.
Up to 30 Jun. 2012, the total assets of the Company stood at RMB 186,239,900 and the net assets at RMB
61,721,300. And for Jan.-Jun. 2012, the Company achieved sales income of RMB 98,023,900 and net profit of
RMB 876,400.
3. With a registered capital of RMB 200,000 and the Company holding 100% of its equity interests, Chansun
13
International (Pte.) Ltd. (Chansun) is mainly engaged in Purchasing, sales and technical service of starting engine of diesel engine,
gasoline engine, components, supporting equipment of starting engine of diesel engine and gasoline engine, agricultural equipments
etc. Up to 30 Jun. 2012, the total assets of the Company stood at RMB 1,468,042.30 and the net assets at RMB
1,328,547.56. And for Jan.-Jun. 2012, the Company achieved sales income of RMB 2,201,907.41 and net profit of
RMB 59,656.24.
4. With a registered capital of RMB 37,254,000 and the Company holding 33% of its equity interests, Changzhou
Fuji Changchai Robin Gasoline Engine Co., Ltd. is mainly engaged in production and manufacture of gasoline
engines. Up to 30 Jun. 2012, the total assets of the Company stood at RMB 82,410,900 and the net assets at RMB
56,312,500. And for Jan.-Jun. 2012, the Company achieved sales income of RMB 93,166,000 and net profit of
RMB 162,200.
All risk factors that might have adverse impact on the Company’s effort to realize its future development strategy
and business goals:
Weaker domestic and foreign demand, fiercer market competition, growing labor cost and other factors would
affect the Company’s profit index in the future to some degree.
The Company will try to maintain its market share in terms of the sales volume through adjusting the product and
market structures, as well as developing new products. In face of the homogenization competition in the
single-cylinder diesel engine market, the Company will give full play to its advantages regarding brand and
quality, carry out the product brightening project and the excellent product project, take a path of differentiation
and solidify and expand its market share. As for the multi-cylinder diesel engine market, the Company will focus
on pushing forward mass production of new products such as EV80, 3M78 and 4G33, improving quality and
expanding sales. Meanwhile, the Company will enhance management, specify appraisal, continue to reduce costs
and overcome difficulties so as to improve its business performance.
1. Main business lines and their operating results
（1）Main business lines classified by industries and products
Unit: RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
of operating of gross profit
of operating cost
Industries/product Operating Gross profit rate revenue rate compared
Operating cost compared with
s revenue (%) compared with with the same
the same period
the same period period last year
last year (%)
last year (%) (%)
Industries
Diesel engines
1,567,714,421.37 1,443,552,908.36 7.92 -7.09 -7.19 0.09
and fittings
Products
Diesel engines 1,567,714,421.37 1,443,552,908.36 7.92 -7.09 -7.19 0.09
14
and fittings
Explanation to the main business performances classified by industries and products:
Explanation to the reasons for any significant year-on-year change of the gross profit rate:
（2）Main business lines classified by regions
Unit: RMB Yuan
Increase/decrease compared with the same
Region Operating revenue
period last year (%)
East China 778,764,744.57 -2.18
Northeast China 82,503,124.63 7.19
Southwest China 158,542,506.44 8.33
Central China 176,067,223.19 -20.46
North China 89,884,109.80 -14.46
Northwest China 72,965,341.01 30.40
South China 119,240,235.58 -21.04
Export 89,747,136.15 -33.28
（3）Reasons for significant changes in main business and its structure
□Applicable √Inapplicable
（4）Reasons for significant changes in profitability of main business (gross profit rate) compared with that
in the last year
□Applicable √Inapplicable
（5）Analysis on reasons of significant changes in profit breakdown compared with the last year
□Applicable √Inapplicable
2. Internal control rules in relation to fair value measurement
√Applicable □Inapplicable
Items related to fair value measurement:
Unit: RMB Yuan
Gains/losses on Accumulative fair Impairment
Item Opening amount Closing amount
fair value value changes provisions for
15
changes in the recorded into equity the reporting
reporting period period
Financial assets
Including: 1. Financial assets
measured at fair value whose
changes are recorded into current
gains and losses
Of which: derivative financial
assets
2. Available-for-sale financial
420,057,000.00 96,824,000.00 516,881,000.00
assets
Subtotal of financial assets 420,057,000.00 96,824,000.00 516,881,000.00
Financial liabilities
Investing property
Production biological assets
Others
Total 420,057,000.00 96,824,000.00 516,881,000.00
Where the value estimation technique was adopted to determine fair value for the same or similar items within the
two years, is there any significant difference between the value estimation results? If yes, please state in detail.
□ Yes √ No
3. Foreign-currency financial assets and liabilities held
√Applicable □Inapplicable
Unit: RMB Yuan
Gains/losses on fair Accumulative fair Impairment
Item Opening amount value changes in the value changes provisions for the Closing amount
reporting period recorded into equity reporting period
Financial assets
Including: 1. Financial assets
measured at fair value whose
changes are recorded into
current gains and losses
Of which: derivative
financial assets
2. Loans and receivables 30,377,505.94 22,365,700.23
3. Available-for-sale
16
financial assets
4. Held-to-maturity
investments
Subtotal of financial assets 30,377,505.94 22,365,700.23
Financial liabilities
（II）Investments
1. General utilization of the raised funds
□Applicable √Inapplicable
2. Projects promised to be invested with raised funds
□Applicable √Inapplicable
3. Change of projects invested with raised funds
□Applicable √Inapplicable
4. Significant projects invested with non-raised funds
√Applicable □Inapplicable
Unit: RMB Ten thousand
Disclosure
Amount for the
Project name date of the first Project progress Project earnings
project
announcement
The project has been
Controlled subsidiary Changzhou reviewed and approved by
Changchai Benniu Diesel Engine the board. And formalities
6 Jun. 2012 5000
Fittings Co., Ltd. capital increase for the change of business
project registration are currently
being handled.
Total 5000 -- --
Notes to significant projects invested with non-raised funds
As reviewed and approved at the First Shareholders’ General Meeting for 2012 of Changzhou Changchai Benniu Diesel Engine
Fittings Co., Ltd. (hereinafter referred to as “Changchai Benniu”) on 31 May 2012, it was decided that shareholders of Changchai
Benniu should increase cash of RMB 66,666,700 according to their shareholding ratios. To be specific, the Company should increase a
capital of RMB 50 million according to its shareholding ratio while Mr. Qiang Jinlong, the other natural shareholder of Changchai
Benniu, should increase a capital of RMB 16,666,700 according to his shareholding ratio.
The Company held a special board session by way of telecommunication on 5 Jun. 2012, at which the Company was agreed to
increase capital of RMB 50 million to Changchai Benniu and the Company’s chairman was authorized to the relevant capital increase
and share expansion agreement with Changchai Benniu. On 21 Jun. 2012, the Company and Changchai Benniu officially signed the
capital increase and share expansion agreement.
17
Currently, the formalities for the change of business registration are being handled.
（III）Revision of the Board of Directors’ business plan for the second half of the year
□Applicable √Inapplicable
（IV）Business performance estimate for Jan.-Sept. 2012
Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period from the beginning
of the year to the end of the next reporting period compared with the same period of last year, as well as the reasons
√Applicable □Inapplicable
（V）Explanation of the Board of Directors on “Non-standard Auditing Report” issued by the
CPA firm for the reporting period
□Applicable √Inapplicable
（VI）Explanation of the Board of Directors on changes and solutions of the issues involved in
the “Non-standard Auditing Report” issued by the CPA firm for last year
□Applicable √Inapplicable
（VII）State the discussion results of the Board of Directors on the reasons and influence of
the Company’s accounting policy and estimate alterations or significant accounting error
correction
□Applicable √Inapplicable
（VIII）Formulation and execution of the Company’s cash dividend policy
According to the requirements of the Notice on Further Implementing Matters Related to Cash Dividend
Distribution of Listed Companies (Zheng-Jian-Fa [2012] No. 37) issued by CSRC and the Notice on Further
Implementing Rules Related to Cash Dividend Distribution of Listed Companies (Su-Zheng-Jian-Gong-Si-Zi
[2012] No. 276) issued by CSRC Jiangsu Bureau, the Company convened a special board session on 6 Aug. 2012
to review the proposal on amending some articles in the Company’s Articles of Association, which was later
reviewed and approved at the First Special Shareholders’ General Meeting for 2012 held on 22 Aug. 2012. The
new dividend-related articles in the amendment proposal are in line with relevant laws and regulations, explicitly
specifying dividend standards, conditions and ratios, as well as the relevant decision-making procedure. The
Company will strictly execute the said regulations and rules. The amendment proposal was disclosed on Securities
Times, Ta Kung Pao and http://www.cninfo.com.cn dated 7 Aug. 2012.
18
（IX）Pre-plan for profit distribution or turning capital reserve into share capital
□Applicable √Inapplicable
（X）The accumulative retained profit as at the end of 2011 is a positive number but the
Company has not put forward a cash dividend pre-plan.
□Applicable √Inapplicable
（XI）Formulation and execution of the information insider registration and management
rules
According to requirements of Shenzhen Stock Exchange, CSRC Jiangsu Bureau and other regulatory authorities,
the Company has formulated the Management Rules for Information Insiders and the Management Rules for
External Users of Information. And the Company has strictly followed the said rules in its management over
information insiders. For the reporting period, no insider took advantage of the insider information and traded the
Company’s shares before significant and sensitive information that would affect the Company’s share price was
disclosed, and thus received punishments or rectification requirements from regulatory authorities.
Does the Company investigate to find information insiders trading the Company’s stock and its derivatives and
pursue those responsible?
□ Yes √ No
Have regulatory authorities impose any regulatory measure or administrative punishment on the Company and
relevant personnel due to the execution of the information insider registration and management rules or their
involvement in insider dealings?
□ Yes √ No
（XII）Other matters that need to be disclosed
□Applicable √Inapplicable
（ XIII ） The Company’s liabilities, credit changes and future cash arrangements for
debt-clearing (Only listed companies with convertible corporate bonds are required to fill the
table below.)
□Applicable √Inapplicable
19
VII. Significant Events
（I）Corporate governance
In the reporting period, the Company was strictly in line with laws, statutes such as Company Law, Securities
Laws, Code of Corporate Governance of Listed Companies, Guide Opinion on Establishment of Independent
Director System by Listed Companies and Guidelines on Internal Controls of Listed Companies and so on,
continuously perfected corporate governance, established and accomplished internal management and control
system, consistently and deeply put forward corporate governance activities, so as to further normalized operation
of the Company, raising corporate governance level, laying a guard for steady and healthy development of the
Company, protect legal rights and interests of the Company and all shareholders.
During the reporting period, in order to implement the Basic Norms for Internal Control of Enterprises and its
mating guidelines, and according to the Notice on Doing a Good Job in the Implementation of Internal Control
Norms by Listed Companies in Jiangsu (Su-Zheng-Jian-Zi [2012] No. 101) issued by CSRC Jiangsu Bureau, the
Board of Directors of the Company has reviewed and approved the work plan for the implementation of internal
control norms on 29 Mar. 2012. Currently, various internal control improvements are proceeding in an orderly
manner according to the said work plan.
（II）Execution of the plans for profit distribution, turning capital reserve into share capital
or new share issuance which had been made in the previous period and were carried out in
the reporting period
√Applicable □Inapplicable
As reviewed and approved at the 11th Session of the 6th Board of Directors and later at the 2011 Annual
Shareholders’ General Meeting, the Company decided to, based on the total 561,374,326 shares as at 31 Dec. 2011,
distribute a cash dividend of RMB 0.20 (tax included) to all shareholders for every 10 shares they held. The
Company disclosed the 2011 annual dividend distribution announcement on 5 Jun. 2012. And the 2011 annual
profit distribution plan has been executed.
20
(III) Significant litigations and arbitrations
√Applicable □Inapplicable
Basic Amount involved
Trial result and Execution of the Disclosure date
Type of the information in the Progress of the Serial No. of the
Party with joint influence of the judge of the of the relevant
Complainant Respondent lawsuit/arbitratio about the lawsuit/arbitratio lawsuit/arbitratio relevant interim
responsibility lawsuit/arbitratio lawsuit/arbitratio interim
n lawsuit/arbitratio n (RMB Ten n announcement
n n announcement
n thousand)
Changchai In the process of
Shandong Hongli
Company, 1436 liquidation and
Group Co., Ltd.
Limited bankruptcy
Changzhou
Changchai Changchai In the process of 31 Dec. 2011, 13 2011-015
Company, Benniu Diesel retrial, with no Apr. 2012, 5 2012-003
Limited Engine Fittings judge yet May 2012 2012-008
Co., Ltd
Details of the significant lawsuits and arbitrations:
1. About the lawsuit case of Shandong Hongli Group Co., Ltd., the accused company owed accumulatively RMB 14.36 million to the Company. The Company sued to
Changzhou Intermediate People’s Court in 2001 and sued for compulsory execution in April, 2002. Currently, the defendant has started the bankruptcy procedure.
2. Changchai Benniu Diesel Engine Fittings Co., Ltd. (Changchai Benniu) is the controlled subsidiary of the Company with a register capital of RMB 33,786,400, of which
the Company invested RMB 25,339,800, accounting for 75% of the total register capital, while the natural person of Qiang Jinlong invested RMB 8,446,600, accounting for
25% of the total register capital. In accordance with the provisions of Articles of Association of the Company, the term of operation of Changchai Benniu Diesel Engine
Fittings Co., Ltd. was from 17 Jun. 1996 to 16 Jun. 2011.
Changchai Benniu Diesel Engine Fittings Co., Ltd. convened the First Special Shareholders’ General Meeting for 2011 on 19 Jul. 2011, at which reviewed the Proposal on
Extending the Term of Operation and Revising the Articles of Association for Changchai Benniu Diesel Engine Fittings Co., Ltd., making a Resolution on Extending the
Term of Operation from 17 Jun. 2011 to 16 Jun. 2026 for Changchai Benniu Diesel Engine Fittings Co., Ltd.. The Company believes that the resolution is effective, which
has a restraint on the shareholders. However, the third party of Qiang Jinlong always denies the effectiveness of the resolution made at the session. Therefore, the Company
21
sued to Changzhou Wujin District People’s Court on 28 Dec. 2011, appealing the court to confirm the effectiveness and legality of the resolution made at the First Special
Shareholders’ General Meeting for 2011, extending the term of operation to 16 Jun. 2026 for Changchai Benniu Diesel Engine Fittings Co., Ltd..
On 9 Apr. 2012, Changzhou Wujin District People’s Court issued a Civil Judgment ([2012] WSC Zi No. 25), deciding that it was in line with relevant laws and regulation for
the appeal of the Company on confirming the effectiveness and legality of the resolution made at the First Special Shareholders’ General Meeting for 2011 convened by
Changchai Benniu Diesel Engine Fittings Co., Ltd. on 19 Jul. 2011, thus the court supported it. And it was legal and effective for the resolution made at the shareholders’
general meeting, which was about “the original Article 4 of the Articles of Association stipulated the term of joint operation with shareholders was from 17 Jun. 1996 to 16
Jun. 2011, and now extending the term for 15 years, i.e. from 17 Jun. 2011 to 16 Jun. 2026”.
Changzhou Wujin Administration for Industry & Commerce issued the Business License for Enterprise of Changchai Benniu Diesel Engine Fittings Co., Ltd. on 20 Apr.
2012, with the term of operation from 17 Jun. 1996 to 16 Jun. 2026.
Qiang Jinlong refused to accept the court decision as final. He appealed to Changzhou Intermediary People’s Court, which opened a court session on 27 Jun. 2012 to try this
case. No verdict has been reached so far.
22
(IV) Bankruptcy or reorganization events
□Applicable √Inapplicable
(V) Holding equity of other listed companies and joint financial enterprises
1. Securities investment
√Applicable □Inapplicable
Proportion in
Initial Number of Closing the total Gain/loss in
Serial Variety of Code of Abbr. of investment shares held at carrying closing the reporting
No. securities securities securities amount the amount securities period (RMB
(RMB Yuan) period-end (RMB Yuan) investment Yuan)
amount (%)
Other securities investments held at the period-end 0 -- 0 0 0
Gain/loss on selling securities in the reporting period -- -- -- -- 230,463.19
Total 0 -- 0 100% 230,463.19
Disclosure date of the board announcement of securities
investment approval
Disclosure date of the general meeting announcement of
securities investment approval
Notes to securities investment: Securities investment gains during the reporting period came from
the new shares subscribed by Changzhou Housheng Investment Co., Ltd., the Company’s
wholly-funded subsidiary.
2. Holding equity of other listed companies
√Applicable □Inapplicable
Proportion in Change of
Initial Gain/loss in
the Closing carrying owners’ equity
investment the reporting Accounting
Stock code Stock abbr. company’s amount (RMB during the Stock source
amount (RMB period (RMB title
total equity Yuan) reporting period
Yuan) Yuan)
(%) (RMB Yuan)
By
Financial exchanging
assets assets with
600166 Foton Motor 41,782,175.00 3.42% 516,587,500.00 0.00 82,292,750.00
available for Changchai
sale Group in
1999
23
Financial
Ninghu assets By transfer
600377 90,500.00 293,500.00 0.00 7,650.00
Expressway available for on agreement
sale
Total 41,872,675.00 -- 516,881,000.00 0.00 82,300,400.00 -- --
Notes to holding equity of other listed companies: The Company holds 72.25 million shares of
Foton Motor and 50,000 shares of Ninghu Expressway.
3. Holding equity of non-listed financial enterprises
√Applicable □Inapplicable
Change of
Proportion in
Name of the Initial Closing Gain/loss in owners’
the
non-listed investment Number of carrying the reporting equity during Accounting
company’s Stock source
financial amount shares held amount (RMB period (RMB the reporting title
total equity
enterprise (RMB Yuan) Yuan) Yuan) period (RMB
(%)
Yuan)
Long-term Sponsor’s
Jiangsu Bank 38,000,000.00 38,000,000 0.48% 38,000,000.00 0 0 equity shares
investment
Total 38,000,000.00 38,000,000 -- 38,000,000.00 0 0 -- --
Notes to holding equity of non-listed financial enterprises: The Company holds 38 million shares
of Jiangsu Bank.
4. Trading stocks of other listed companies
√Applicable □Inapplicable
Number of shares
Opening number of Closing number of Used capital (RMB Investment income
Stock name bought in/sold out in
shares shares Yuan) (RMB Yuan)
the reporting period
New share
0 0 230,463.19
subscription
The Company sold new shares obtained through subscription and thus gained a total investment
income of RMB 230,463.19 during the reporting period.
Notes to trading stocks of other listed companies:
(VI) Assets transaction events
1. Purchase of assets
□Applicable √Inapplicable
24
2. Sale of assets
□Applicable √Inapplicable
3. Exchange of assets
□Applicable √Inapplicable
4. Business combination
□Applicable √Inapplicable
5. Progress of these events after the publication of the assets reorganization report or public
notices on the purchases or sales of assets, as well as the influences of these events on the
operation results and financial status of the Company in this reporting period
□Applicable √Inapplicable
(VII) Explanation on shareholding increase scheme during the reporting period
proposed or implemented by the principal shareholders and act-in-concert
persons
□Applicable √Inapplicable
(VIII) Implementation situation and influence of equity incentive plan of the
Company
□Applicable √Inapplicable
(IX) Significant related-party transactions
1. Related-party transactions relevant to routine operation
□Applicable √Inapplicable
2. Related-party transactions regarding purchase and sales of assets
□Applicable √Inapplicable
3. Significant related-party transitions with joint investments
□Applicable √Inapplicable
4. Significant credits and liabilities with related parties
□Applicable √Inapplicable
Capital occupation during the reporting period and debt-clearing progress
□Applicable √Inapplicable
The accountability plan put forward by the Board of Directors when the Company had not completed collecting
25
the capital occupied for non-operating purposes by the end of the reporting period
□Applicable √Inapplicable
5. Other significant related-party transactions
(X) Significant contracts and execution
1. The trust, contract and lease whose profits reaching more than 10% (including 10%) of
the total profits of the Company in the reporting period
(1) Status of trust
□Applicable √Inapplicable
（2）Particulars about contracting
□Applicable √Inapplicable
（3）Particulars about leasing
□Applicable √Inapplicable
2. Guarantees provided by the Company
√ Applicable □ Inapplicable
Unit: RMB Ten thousand
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Disclosure Guarante
Actual
date of Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party relevant guarantee related
guarantee (date of guarantee guarantee or not
announceme amount party or
agreement)
nt not
Total external guarantee line Total actual occurred amount
approved during the reporting 0 of external guarantee during 0
period (A1) the reporting period (A2)
Total external guarantee line that Total actual external guarantee
has been approved at the end of the 0 balance at the end of the 0
reporting period (A3) reporting period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosure Guarante
date of Actual occurrence e for a
Amount for Actual guarantee Type of Period of Executed
Guaranteed party relevant date (date of related
guarantee amount guarantee guarantee or not
announceme agreement) party or
nt not
26
Changzhou
Changchai Benniu
2200 22 Mar. 2011 2200 Credit One year Yes No
Diesel Engine
Fittings Co., Ltd
Total guarantee line approved for Total actual occurred amount
the subsidiaries during the of guarantee for the
0 0
reporting period subsidiaries during the
(B1) reporting period (B2)
Total guarantee line that has been Total actual guarantee balance
approved for the subsidiaries at the 0 for the subsidiaries at the end 0
end of the reporting period (B3) of the reporting period (B4)
Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
Total guarantee line approved Total actual occurred amount
during the reporting period 0 of guarantee during the 0
(A1+B1) reporting period (A2+B2)
Total guarantee line that has been
Total actual guarantee balance
approved at the end of the reporting
0 at the end of the reporting 0
period
period (A4+B4)
(A3+B3)
Proportion of total guarantee amount (A4+B4) to the net assets of
0
the Company
Of which:
Amount of guarantee for shareholders, actual controller and
0
related parties (C)
Amount of debt guarantee provided for the guaranteed party
whose asset-liability ratio is not less than 70% directly or 0
indirectly (D)
Part of the amount of the total guarantee over 50% of net assets
0
(E)
Total amount of the above three guarantees (C+D+E) 0
Explanation on possible bearing joint responsibility of liquidation
Naught
due to immature guarantee
Explanation on provision of guarantees for external parties in
Naught
violation of the prescribed procedure
3. Entrusted financial management
□Applicable √Inapplicable
27
4. Performance of significant contracts relevant to routine operation
□Applicable √Inapplicable
5. Other significant contracts
□Applicable √Inapplicable
(XI) Explanation on issuing corporate bonds
□Applicable √Inapplicable
(XII) Performance of commitments
1. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period, or such commitments carried down into the reporting period
□Applicable √Inapplicable
2. The Company’s assets or projects exist profitable prediction and the reporting period is in
such prediction period, it states the profits from the assets or projects reaching original
prediction and relevant reasons
□Applicable √Inapplicable
(XIII) Items of other comprehensive income
Unit: RMB Yuan
Items This reporting period Same period of last year
1. Profits/(losses) from available-for-sale financial assets 96,824,000.00 -250,046,500.00
Less: Effects on income tax generating from available-for-sale
14,523,600.00 -37,506,975.00
financial assets
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal 82,300,400.00 -212,539,525.00
2. Interests in the investee entities’ other comprehensive income as per
equity method
Less: Effects on income tax generating from the interests in the
investee entities’ other comprehensive income as per equity method
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging
instrument
28
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
The adjustment value that is the converted initial recognition amount of
arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements -1,481.92
Less: Net value of disposal of oversea operations that recognized into
current profit and loss
Subtotal -1,481.92
5. Other
Less: Effects on income tax generating from the others that included
into other comprehensive income
Net amount transferred into profit and loss in the current period that
recognized into other comprehensive income in prior period
Subtotal
Total 82,298,918.08 -212,539,525.00
(XIV) Particulars about researches, visits and interviews received in this
reporting period
Main discussion and
Type of the
Time of reception Place of reception Way of reception Visitor/caller materials provided by the
visitor/caller
Company
Main operation status of
23 Feb. 2012 The Company By phone Individual Investor
the Company
Main operation status of
18 Apr. 2012 The Company By phone Individual Investor
the Company
Main operation status of
24 May 2012 The Company By phone Individual Investor
the Company
(XV) Particulars about engagement and disengagement of CPAs firm
Has this interim report been audited?
□ Yes √ No
Has the CPAs firm been changed?
□ Yes √ No
(XVI) Particulars about punishment and rectification order received by the
Company, its directors, supervisors, senior executives, shareholders, actual
29
controller and acquirer
□Applicable √Inapplicable
(XVII) Explanation on other significant events
□Applicable √Inapplicable
(XVIII) Particulars about significant changes in the profitability, asset status and
credit status of the Company’s convertible bonds guarantor
□Applicable √Inapplicable
(XIX) Index for information disclosure
Newspapers for disclosing Internet website for disclosing
Event information and relevant Publishing date information and the searching
page approach
Securities Times D20; Ta
Announcement on Performance Forecast 17 Jan. 2012 http://www.cninfo.com.cn
Kung Pao B8
Announcement on Resolutions of the 10th
Session of the 6th Board of Directors, Work Securities Times D17; Ta
30 Mar. 2012 http://www.cninfo.com.cn
Plan for the Implementation of Internal Kung Pao B19
Control Norms
Announcement on Lawsuit or Arbitration Securities Times D25; Ta
13 Apr. 2012 http://www.cninfo.com.cn
Progress Kung Pao B6
Abstract of the 2011 Annual Report, Report
for the First Quarter of 2012,
Announcement on Resolutions of the 11th
Session of the 6th Board of Directors, Securities Times D28; Ta
26 Apr. 2012 http://www.cninfo.com.cn
Notice on Convening the 2011 Annual Kung Pao B12
Shareholders’ General Meeting,
Announcement on Resolutions of the 8th
Session of the 6th Supervisory Committee
Announcement on Correction of the Report Securities Times B64; Ta
28 Apr. 2012 http://www.cninfo.com.cn
for the First Quarter of 2012 Kung Pao B7
Announcement on Lawsuit or Arbitration Securities Times B4; Ta
5 May 2012 http://www.cninfo.com.cn
Progress Kung Pao A14
Announcement on Resolutions of the 2011 Securities Times D12; Ta
24 May 2012 http://www.cninfo.com.cn
Annual Shareholders’ General Meeting Kung Pao B3
Announcement on the 2011 Annual Securities Times D12; Ta
5 Jun. 2012 http://www.cninfo.com.cn
Dividend Distribution Kung Pao B5
Announcement on Resolutions of the Securities Times D25; Ta 6 Jun. 2012 http://www.cninfo.com.cn
30
Special Board Session, Announcement on Kung Pao B10
Increasing Capital to the Controlled
Subsidiary Changzhou Changchai Benniu
Diesel Engine Fittings Co., Ltd.
Announcement on Progress of the Capital
Increase to the Controlled Subsidiary Securities Times D33; Ta
26 Jun. 2012 http://www.cninfo.com.cn
Changzhou Changchai Benniu Diesel Kung Pao B2
Engine Fittings Co., Ltd.
VIII. Financial Report
(I) Auditor’s report
Has this interim report been audited?
□ Yes √ No
(II) Financial statements
Consolidated statements or not?
√Yes □No
The monetary unit in the financial statements of the financial report is RMB Yuan if not specified otherwise.
Monetary unit of notes to financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Note Closing balance Opening balance
Current Assets:
Monetary funds 663,396,846.56 553,742,666.81
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 143,007,349.44 181,698,938.60
Accounts receivable 442,072,620.04 360,837,278.55
Accounts paid in advance 34,954,124.65 42,882,876.51
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
31
Dividend receivable
Other accounts receivable 22,089,519.44 11,062,647.69
Financial assets purchased under
agreements to resell
Inventories 387,468,266.85 471,067,741.38
Non-current assets due within 1
year
Other current assets 85,122.78
Total current assets 1,693,073,849.76 1,621,292,149.54
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 516,881,000.00 420,057,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 63,816,940.34 63,763,414.34
Investing property 65,010,222.83 66,114,393.23
Fixed assets 522,424,284.76 428,903,574.63
Construction in progress 134,606,017.26 180,718,077.33
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 87,195,345.14 88,327,078.34
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 912,707.32 912,707.32
Other non-current assets
Total of non-current assets 1,390,846,517.65 1,248,796,245.19
Total assets 3,083,920,367.41 2,870,088,394.73
Current liabilities:
Short-term borrowings 40,000,000.00 37,000,000.00
Borrowings from Central Bank
Customer bank deposits and due
32
to banks and other financial
institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 314,773,964.00 278,080,000.00
Accounts payable 564,104,205.56 495,048,237.44
Accounts received in advance 68,616,602.09 64,357,833.51
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
payable 17,119,284.05 45,290,276.02
Tax payable -42,955,039.99 -61,296,208.84
Interest payable
Dividend payable 7,261,388.55 3,891,433.83
Other accounts payable 139,653,791.36 128,410,363.38
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting
of securities
Non-current liabilities due within
1 year 30,000,000.00
Other current liabilities 778,963.63 1,203,137.39
Total current liabilities 1,109,353,159.25 1,021,985,072.73
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 71,250,975.00 56,727,375.00
Other non-current liabilities 34,564,420.07 34,962,420.07
Total non-current liabilities 105,815,395.07 91,689,795.07
33
Total liabilities 1,215,168,554.32 1,113,674,867.80
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 577,120,648.76 494,820,248.76
Less: Treasury stock
Specific reserves
Surplus reserves 277,156,622.37 277,156,622.37
Provisions for general risks
Retained profits 439,170,749.05 409,368,310.58
Foreign exchange difference -1,481.92 -17,840.00
Total equity attributable to owners
of the Company 1,854,820,864.26 1,742,701,667.71
Minority interests 13,930,948.83 13,711,859.22
Total owners’ (or shareholders’)
equity 1,868,751,813.09 1,756,413,526.93
Total liabilities and owners’ (or
shareholders’) equity 3,083,920,367.41 2,870,088,394.73
Legal representative: Xue Guojun Person-in-charge of the accounting
work: He Jianguang
Chief of the accounting division: Jiang He
2. Balance sheet of the Company
Unit: RMB Yuan
Item Note Closing balance Opening balance
Current Assets:
Monetary funds 584,191,639.04 523,688,773.83
Transactional financial assets
Notes receivable 143,007,349.44 176,278,938.60
Accounts receivable 410,420,932.45 325,793,527.31
Accounts paid in advance 14,525,843.56 20,811,380.78
Interest receivable
Dividend receivable
Other accounts receivable 58,673,840.23 9,201,636.94
Inventories 315,955,142.47 401,674,909.70
34
Non-current assets due within 1
year
Other current assets
Total current assets 1,526,774,747.19 1,457,449,167.16
Non-current assets:
Available-for-sale financial assets 516,881,000.00 420,057,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 134,235,180.34 134,181,654.34
Investing property 65,010,222.83 66,114,393.23
Fixed assets 471,859,068.77 376,208,390.40
Construction in progress 90,513,447.34 161,315,910.30
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 85,054,308.80 86,157,776.66
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 912,707.32 912,707.32
Other non-current assets
Total of non-current assets 1,364,465,935.40 1,244,947,832.25
Total assets 2,891,240,682.59 2,702,396,999.41
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 307,773,964.00 271,080,000.00
Accounts payable 496,167,927.82 441,996,929.38
Accounts received in advance 65,905,321.41 64,183,951.63
Employee’s compensation
payable 13,149,616.46 40,157,951.71
Tax payable -36,072,237.55 -56,938,401.59
Interest payable
Dividend payable 6,613,134.69 3,243,179.97
35
Other accounts payable 130,674,958.75 125,268,578.76
Non-current liabilities due within
1 year 30,000,000.00
Other current liabilities
Total current liabilities 984,212,685.58 918,992,189.86
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 71,250,975.00 56,727,375.00
Other non-current liabilities 34,564,420.07 34,962,420.07
Total non-current liabilities 105,815,395.07 91,689,795.07
Total liabilities 1,090,028,080.65 1,010,681,984.93
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 586,799,834.95 504,499,434.95
Less: Treasury stock
Specific reserves
Surplus reserves 277,156,622.37 277,156,622.37
Retained profits 375,881,818.62 348,684,631.16
Foreign exchange difference
Total owners’ (or shareholders’)
equity 1,801,212,601.94 1,691,715,014.48
Total liabilities and owners’ (or
shareholders’) equity 2,891,240,682.59 2,702,396,999.41
3. Consolidated income statement
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total operating revenues 1,599,480,212.75 1,702,548,109.24
Including: Sales income 1,599,480,212.75 1,702,548,109.24
Interest income
36
Premium income
Handling charge and
commission income
II. Total operating cost 1,577,236,465.99 1,671,832,162.82
Including: Cost of sales 1,472,951,393.72 1,563,753,985.22
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate charges 161,974.43 313,245.25
Selling and distribution
expenses 58,416,299.71 53,181,896.91
Administrative expenses 48,141,907.24 59,829,955.18
Financial expenses -6,657,859.42 -5,675,460.45
Asset impairment loss 4,222,750.31 428,540.71
Add: Gain/(loss) from change in fair
value (“-” means loss) -66,665.37
Gain/(loss) from investment
(“-” means loss) 8,953,989.19 10,282,311.20
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 31,197,735.95 40,931,592.25
Add: non-operating income 7,109,940.84 9,002,588.33
Less: non-operating expense 2,779,218.80 2,376,030.59
Including: loss from non-current
601,158.15 679.50
asset disposal
IV. Total profit (“-” means loss) 35,528,457.99 47,558,149.99
Less: Income tax expense 5,506,929.91 9,631,166.60
37
V. Net profit (“-” means loss) 30,021,528.08 37,926,983.39
Including: Net profit achieved
by combined parties before the
combinations
Attributable to owners of the
Company 29,802,438.47 37,156,614.70
Minority shareholders’ income 219,089.61 770,368.69
VI. Earnings per share -- --
(I) Basic earnings per share 0.05 0.07
(II) Diluted earnings per share 0.05 0.07
Ⅶ. Other comprehensive incomes 82,298,918.08 -212,539,525.00
Ⅷ. Total comprehensive incomes 112,320,446.16 -174,612,541.61
Attributable to owners of the
112,101,356.55 -175,382,910.30
Company
Attributable to minority
770,368.69
shareholders 219,089.61
Legal representative: Xue Guojun Person-in-charge of the accounting
work: He Jianguang
Chief of the accounting division: Jiang He
4. Income statement of the Company
Unit: RMB Yuan
Item Note Jan.-Jun. 2012 Jan.-Jun. 2011
I. Total sales 1,607,060,158.74 1,698,786,025.65
Less: cost of sales 1,496,934,202.57 1,576,529,249.38
Business taxes and surcharges
Distribution expenses 54,949,176.66 50,057,012.94
Administrative expenses 41,350,985.75 51,705,886.62
Financial costs -8,156,193.81 -6,084,501.00
Impairment loss 2,873,555.97 305,531.70
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
means loss) 8,723,526.00 10,115,000.00
Including: income form investment
on associates and joint ventures
38
II. Business profit (“-” means loss) 27,831,957.60 36,387,846.01
Add: non-business income 6,872,462.11 8,834,166.57
Less: non-business expense 2,749,218.80 2,360,206.85
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 31,955,200.91 42,861,805.73
Less: income tax expense 4,758,013.45 8,205,050.82
IV. Net profit (“-” means loss) 27,197,187.46 34,656,754.91
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income 82,298,918.08 -212,539,525.00
VII. Total comprehensive income 109,496,105.54 -177,882,770.09
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
commodities and rendering of service 1,748,751,589.44 1,742,112,976.28
Net increase of deposits from
customers and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
39
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 26,359,104.71 24,805,590.94
Other cash received relating to
operating activities 16,512,408.28 15,950,302.31
Subtotal of cash inflows from operating
activities 1,791,623,102.43 1,782,868,869.53
Cash paid for goods and services 1,380,761,003.27 1,605,540,702.84
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 153,967,006.79 146,277,793.39
Various taxes paid 9,539,003.49 34,717,093.95
Other cash payment relating to
operating activities 39,486,930.25 44,985,280.87
Subtotal of cash outflows from
operating activities 1,583,753,943.80 1,831,520,871.05
Net cash flows from operating activities 207,869,158.63 -48,652,001.52
II. Cash flows from investing activities:
Cash received from withdrawal of
investments 15,486,490.34 232,202.20
Cash received from return on
investments 8,900,463.19 10,312,803.27
Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets 2,964,690.64 20,297,786.84
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to 52,189.02
40
investing activities
Subtotal of cash inflows from
investing activities 27,351,644.17 30,894,981.33
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets 83,862,517.79 66,890,197.14
Cash paid for investment 15,119,437.12 663,948.24
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities 10,000,000.00
Subtotal of cash outflows from
investing activities 108,981,954.91 67,554,145.38
Net cash flows from investing activities -81,630,310.74 -36,659,164.05
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 33,000,000.00 43,500,000.00
Cash received from issuance of
bonds
Other cash received relating to
financing activities 0.00
Subtotal of cash inflows from financing
activities 33,000,000.00 43,500,000.00
Repayment of borrowings 60,000,000.00 32,000,000.00
Cash paid for interest expenses and
distribution of dividends or profit 10,463,297.14 2,608,302.74
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
financing activities
Sub-total of cash outflows from
financing activities 70,463,297.14 34,608,302.74
41
Net cash flows from financing activities -37,463,297.14 8,891,697.26
IV. Effect of foreign exchange rate
changes on cash and cash equivalents -1,481.92
V. Net increase in cash and cash
equivalents 88,774,068.83 -76,419,468.31
Add: Opening balance of cash and
cash equivalents 470,293,043.20 763,106,649.01
VI. Closing balance of cash and cash
equivalents 559,067,112.03 686,687,180.70
6. Cash flow statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2012 Jan.-Jun. 2011
I. Cash flows from operating activities:
Cash received from sale of
commodities and rendering of service 1,731,463,226.76 1,739,971,070.13
Tax refunds received 25,094,793.80 24,805,590.94
Other cash received relating to
operating activities 15,664,736.12 14,233,689.48
Subtotal of cash inflows from operating
activities 1,772,222,756.68 1,779,010,350.55
Cash paid for goods and services 1,409,751,006.75 1,632,168,132.83
Cash paid to and for employees 138,645,503.69 130,085,632.70
Various taxes paid 6,611,058.31 28,995,696.24
Other cash payment relating to
operating activities 32,645,603.38 41,143,545.90
Subtotal of cash outflows from
operating activities 1,587,653,172.13 1,832,393,007.67
Net cash flows from operating activities 184,569,584.55 -53,382,657.12
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
investments 8,670,000.00 10,115,000.00
Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets 2,921,547.76 20,143,379.50
42
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
investing activities 11,591,547.76 30,258,379.50
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets 68,072,114.90 50,816,604.10
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities 50,000,000.00
Subtotal of cash outflows from
investing activities 118,072,114.90 50,816,604.10
Net cash flows from investing activities -106,480,567.14 -20,558,224.60
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
activities
Repayment of borrowings 30,000,000.00
Cash paid for interest expenses and
distribution of dividends or profit 8,466,263.12 1,228,985.37
Other cash payments relating to
financing activities
Sub-total of cash outflows from
financing activities 38,466,263.12 1,228,985.37
Net cash flows from financing activities -38,466,263.12 -1,228,985.37
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
equivalents 39,622,754.29 -75,169,867.09
43
Add: Opening balance of cash and
cash equivalents 440,239,150.22 727,580,790.13
VI. Closing balance of cash and cash
equivalents 479,861,904.51 652,410,923.04
7. Consolidated statement of changes in owners’ equity
Reporting period
Unit: RMB Yuan
Reporting period
Equity attributable to owners of the Company
Paid-up
Total
Item Minority
capital Less: General
Capital Specific Surplus Retaine owners’
(or treasury risk Others interests
reserve reserve reserve d profit equity
share stock reserve
capital)
I. Balance at the end of the 561,374 494,820, 277,156 409,368, -17,840. 13,711,85 1,756,413,
previous year ,326.00 248.76 ,622.37 310.58 00 9.22 526.93
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374 494,820, 277,156 409,368, -17,840. 13,711,85 1,756,413,
the year ,326.00 248.76 ,622.37 310.58 00 9.22 526.93
III. Increase/ decrease of
82,300,4 29,802,4 16,358.0 219,089.6 112,338,28
amount in the year (“-” means
00.00 38.47 8 1 6.16
decrease)
29,802,4 219,089.6 30,021,528
(I) Net profit
38.47 1 .08
(II) Other comprehensive 82,300,4 16,358.0 82,316,758
incomes 00.00 8 .08
82,300,4 29,802,4 16,358.0 219,089.6 112,338,28
Subtotal of (I) and (II)
00.00 38.47 8 1 6.16
(III) Capital paid in and
reduced by owners
1. Capital paid in by
owners
2. Amounts of share-based
44
payments recognized in
owners’ equity
3. Others
(IV) Profit distribution
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to
owners (or shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
561,374 577,120, 277,156 439,170, -1,481.9 13,930,94 1,868,751,
IV. Closing balance
,326.00 648.76 ,622.37 749.05 2 8.83 813.09
Last year
Unit: RMB Yuan
Last year
Equity attributable to owners of the Company
Paid-up
Total
Item Minority
capital Less: General
Capital Specific Surplus Retaine owners’
(or treasury risk Others interests
reserve reserve reserve d profit equity
share stock reserve
capital)
45
I. Balance at the end of the 561,374 883,601, 273,072 360,595, 12,294,22 2,090,938,
previous year ,326.00 748.76 ,577.59 476.29 9.26 357.90
Add: retrospective
adjustments due to business
combinations under the same
control
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374 883,601, 273,072 360,595, 12,294,22 2,090,938,
the year ,326.00 748.76 ,577.59 476.29 9.26 357.90
III. Increase/ decrease of
-388,78 4,084,0 48,772,8 -17,840. 1,417,629 -334,524,8
amount in the year (“-” means
1,500.00 44.78 34.29 00 .96 30.97
decrease)
52,856,8 1,417,629 54,274,509
(I) Net profit
79.07 .96 .03
(II) Other comprehensive -388,78 -17,840. -388,799,3
incomes 1,500.00 00 40.00
-388,78 52,856,8 -17,840. 1,417,629 -334,524,8
Subtotal of (I) and (II)
1,500.00 79.07 00 .96 30.97
(III) Capital paid in and
reduced by owners
1. Capital paid in by
owners
2. Amounts of share-based
payments recognized in
owners’ equity
3. Others
4,084,0 -4,084,0
(IV) Profit distribution
44.78 44.78
1. Appropriations to 4,084,0 -4,084,0
surplus reserves 44.78 44.78
2. Appropriations to
general risk provisions
3. Appropriations to
owners (or shareholders)
4. Other
46
(V) Internal carry-forward of
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the
period
2. Used in the period
(Ⅶ) Other
561,374 494,820, 277,156 409,368, -17,840. 13,711,85 1,756,413,
IV. Closing balance
,326.00 248.76 ,622.37 310.58 00 9.22 526.93
8. Statement of changes in owners’ equity of the Company
Reporting period
Unit: RMB Yuan
Reporting period
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 561,374,32 504,499,43 277,156,62 348,684,63 1,691,715,
previous year 6.00 4.95 2.37 1.16 014.48
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374,32 504,499,43 277,156,62 348,684,63 1,691,715,
the year 6.00 4.95 2.37 1.16 014.48
III. Increase/ decrease of amount 82,300,400 27,197,187 109,497,58
in the year (“-” means decrease) .00 .46 7.46
47
27,197,187 27,197,187
(I) Net profit
.46 .46
(II) Other comprehensive 82,300,400 82,300,400
incomes .00 .00
82,300,400 27,197,187 109,497,58
Subtotal of (I) and (II)
.00 .46 7.46
(III) Capital paid in and
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
(IV) Profit distribution
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
(or shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
561,374,32 586,799,83 277,156,62 375,881,81 1,801,212,
IV. Closing balance
6.00 4.95 2.37 8.62 601.94
48
Last year
Unit: RMB Yuan
Last year
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 561,374,32 893,280,93 273,072,57 311,928,22 2,039,656,
previous year 6.00 4.95 7.59 8.16 066.70
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374,32 893,280,93 273,072,57 311,928,22 2,039,656,
the year 6.00 4.95 7.59 8.16 066.70
III. Increase/ decrease of amount -388,781,5 4,084,044. 36,756,403 -347,941,0
in the year (“-” means decrease) 00.00 78 .00 52.22
40,840,447 40,840,447
(I) Net profit
.78 .78
(II) Other comprehensive -388,781,5 -388,781,5
incomes 00.00 00.00
-388,781,5 40,840,447 -347,941,0
Subtotal of (I) and (II)
00.00 .78 52.22
(III) Capital paid in and
reduced by owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
4,084,044. -4,084,044.
(IV) Profit distribution
78 78
1. Appropriations to surplus 4,084,044. -4,084,044.
reserves 78 78
2. Appropriations to general
risk provisions
3. Appropriations to owners
49
(or shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital
(or share capital) from capital
public reserves
2. New increase of capital
(or share capital) from surplus
reserves
3. Surplus reserves for
making up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
561,374,32 504,499,43 277,156,62 348,684,63 1,691,715,
IV. Closing balance
6.00 4.95 2.37 1.16 014.48
(Ⅲ) Company Profile
Changchai Company, Limited (hereinafter referred to as “the Company”) was founded on 5 May
1994, which is a company limited by shares promoted solely by Changzhou Diesel Engine Plant
through the approval by the State Commission for Restructuring the Economic Systems with
document TGS [1993] No. 9 on 15 Jan. 1993 by way of public offering of shares. With the
approved of the People's Government of Jiangsu Province SZF [1993] No. 67, as well as
reexamined and approved by China Securities Regulatory Commission (“CSRC”) through
document ZJFSZ (1994) No. 9, the Company initially issued A shares to the public from 15 Mar.
1994 to 30 Mar. 1994. As approved by the Shenzhen Stock Exchange through document SZSFZ
(1994) No. 15, such tradable shares of the public got listing on 1 Jul. 1994 at Shenzhen Stock
Exchange with “Su Changchai A” for short of stock, as well as “0570” as stock code (present
stock code is “000570”).
In 1996, with the recommendation of the Office of the People's Government of Jiangsu Province
SZBH [1996] No. 13, as well as first review by Shenzhen Municipal Securities Administration
Office through SZBZ [1996] No. 24, and approval of the State Council Securities Commission
ZWF [1996] No. 27, the Company issued 100 million B shares to qualified investors on 27 Aug.
1996 to 30 Aug. 1996, getting listed on 13 Sep. 1996.
On 9 Jun. 2006, the Company held a shareholders’ general meeting related to A share market to
examine and approve share merger reform plan, and performed the share merger reform on 19 Jun.
2006.
As examined and approved at the 2009 2nd Extraordinary Shareholders’ General Meeting in Sep.
2009, based on the total share capital of 374,249,551 shares as at 30 Jun. 2009, the Company
implemented the profit distribution plan, i.e. to distribute 5 bonus shares and cash of RMB 0.8 for
every 10 shares, with registered capital increased by RMB 187,124,775.00, as well as registered
capital of RMB 561,374,326.00 after change. As at 31 Dec. 2011, the total share capital of the
Company is 561,374,326 shares, as well as registered capital of RMB 561,374,326.00, which
verified by Jiangsu Gongzheng Tianye Certified Public Accountants Company Limited with
issuing Capital Verification Report SGC [2010] No. B002. The Company had registered the
50
change with the administrative authorities for industry and commerce, and obtained the renewed
business license as legal person with No. 320400000004012. The Company’s registered address is
situated at No. 123 Huaide Middle Road, Changzhou, Jiangsu, as well as its head office located at
No. 123 Huaide Middle Road, Changzhou, Jiangsu.
The Company belongs to manufacturing with business scope including manufacturing and sale of
diesel engine, diesel engines part and casting, grain harvesting machine, rotary cultivators,
walking tractor, mould and fixtures, assembling and sale of diesel generating set and pumping unit.
The Company mainly engaged in the production and sales of small and medium-sized single
cylinders and multi-cylinder diesel engine with the label of Changchai Brand. The diesel engine
produced and sold by the Company were mainly used in tractors, combine harvest models, light
commercial vehicle, farm equipment, small-sized construction machinery, generating sets and
shipborne machinery and equipment, etc.. The Company’s main business remained unchanged in
the reporting period.
The Company established the Shareholders’ General Meeting, the Board of Directors and the
Board of Supervisors，Corporate office, Financial Department, Political Department, Investment
and Development Department, Enterprise Management Department, Human Recourses
Department, Production Department, Procurement Department, Sales Company, Market
Department, Chief Engineer Office, Technology Center, QA Department, Foundry Branch,
Machine Processing Branch, Single-cylinder Engine branch, Multi-cylinder Engine Branch and
Overseas Business Department in the Company.
The financial report has been approved to be issued at the 12th Session of the 6th Board of
Directors on 22 Aug. 2012.
(Ⅳ) Main accounting policies, accounting estimates and prior period errors
1. Basis for preparation
With going-concern assumption as the basis, the Company prepares its financial statement in light
of the actual transactions and matters, as well as the accounting standard for business enterprise
promulgated by the Ministry of Finance of PRC on 15 Feb. 2006 and the following important
accounting policies and accounting estimates.
2. Statement on following Accounting Standard for Business Enterprises
The Company declared that the Financial Report prepared by the Company was in line with
requirements of the Accounting Standard for Business Enterprises, which reflected the financial
status, operating results and cash flow of the Company truly and objectively.
3. Fiscal period
The fiscal periods are divided into fiscal year and metaphase, the fiscal year is from Jan. 1 to Dec.
31 and as the metaphase included monthly, quarterly and semi-yearly periods.
4. Currency used in bookkeeping
Renminbi is functional currency of the Company.
5. Accounting methods for business combinations under the same control and business
combinations not under the same control
(1) Business combinations under the same control:
The combination consideration paid by the combining party and net assets obtained by the
combining party in a business combination shall be measured on the basis of their carrying
amount. As for the balance between the carrying amount of the net assets obtained by the
combining party and the carrying amount of the net assets obtained by the combining party and
the carrying amount of the consideration paid by it (or the total par value of the shares issued), the
additional paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be
offset, the retained earnings shall be adjusted. All direct costs for the business combination,
including expenses for audit, evaluating and legal services shall be recorded into the profits and
losses at the current period. The handling fees, commissions and other expense for the issuance of
equity securities or bonds for the business combination shall be recorded into the amount of initial
measurement of the shareholders’ equity or liabilities.
(2) Business combinations not under the same control
The combination costs of the acquirer and the identifiable net assets obtained by the acquirer in a
business combination shall be measured at the fair values. The acquirer shall recognize the
positive balance between the combination costs and the fair value of the identifiable net assets it
obtains form the acquiree as business reputation. The balance that the combination costs are less
than the fair value of the identifiable net assets the acquirer obtains from the acquiree in a business
51
combination, including expense on audit, evaluating and legal services shall be recorded into the
gains and losses at the current period. The handling fees, commissions and other expenses for the
issuance of equity securities or bonds for the business combination shall be recorded into the
amount of initial measurement of the shareholders’ equity or liabilities.
6. Preparation methods for consolidated financial statements
The Company shall start consolidating the subsidiary companies since the date the Company
obtained the actual control right of the subsidiaries and stop consolidating since the date the
Company lost the actual control right of the subsidiaries. All significant current balance,
investment, transactions and unrealized profits between the Company and subsidiary company or
among the subsidiaries shall be offset when preparing the consolidated financial statement. As for
the shares in the owner’s equity of subsidiary company not belong to the Company, shall be
indicated in the item of “minority shareholders’ equity” belonging the owner’s equity in the
consolidated balance sheet.
The accounting policy or accounting period of each subsidiary is different from which of the
Company, which shall be adjusted as the Company; or subsidiaries shall prepare financial
statement again required by the Company when preparing the consolidated financial statements.
As for the added subsidiary company not controlled by the same enterprise preparing the
consolidated financial statement, shall adjust individual financial statement based on the fair value
of the identifiable net assets on the acquisition date; as for the added subsidiary companies
controlled by the same enterprise preparing the financial statement, shall not adjust the financial
statement of the subsidiaries, namely current status of each party participating in the consolidation
when the final control party starts implementing control.
7. Recognition standard for cash and cash equivalents
The term “cash” refers to cash on hand and deposits that are available for payment at any time.
The term “cash equivalents” refers to short-term (within 3 months from the purchase date) and
highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.
8. Business of foreign currencies and the translation of foreign currency statements
Concerning the foreign-currency transactions that occurred, the foreign currency shall be
converted into the recording currency according to the middle price of the market exchange rate
disclosed by the People’s Bank of China on the date of the transaction. Among the said
transactions that occurred, those involving foreign exchanges shall be converted according to the
exchange rates adopted in the actual transactions.
On the balance sheet date, the foreign-currency monetary assets and the balance of the liability
account shall be converted into the recoding currency according to the middle price of the market
exchange rates disclosed by the People’s Bank of China on the Balance Sheet Date. The difference
between the recording-currency amount converted according to the exchange rate on the Balance
Sheet Date and the original book recording-currency amount shall be recognized as gains/losses
from foreign exchange. And the exchange gain/loss caused by the foreign-currency borrowings
related to purchasing fixed assets shall be handled according to the principle of capitalizing
borrowing expenses; the exchange gain/loss incurred in the establishment period shall be recorded
into the establishment expense; others shall be recorded into the financial expenses for the current
period.
On the balance sheet date, the foreign-currency non-monetary items measured by historical cost
shall be converted according to the middle price of the market exchange disclosed by the People’s
Bank of China on the date of the transaction, with no changes in the original recording-currency
amount; while the foreign-currency non-monetary items measured by fair value shall be converted
according to the middle price of the market exchange disclosed by the People’s Bank of China on
the date when the fair value is recognized, and the exchange gain/loss caused thereof shall be
recognized as the gain/loss from fair value changes and recorded into the gain/loss of the current
period.
9. Financial instruments
(1) Category of financial instruments
Financial instruments shall be divided into: Financial assets or financial liabilities measured at fair
value and of which variations are recorded in profits and losses for the current period, the
held-to-maturity investment, accounts receivable, available-for-sale financial assets and other
financial liabilities.
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(2) Recognition and measurement of financial liabilities
1) Recognition of financial assets
When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset
or financial liability.
Where a financial asset satisfies any of the following requirements, the recognition of it shall be
terminated:
(1) Where the contractual rights for collecting the cash flow of the said financial assets are
terminated;
(2) Where the said financial asset has been transferred and meets the conditions for recognizing
the termination of financial assets as provided for in Accounting Standard for Business Enterprises
No. 23 – Transfer of Financial Assets.
Only when the prevailing obligations of a financial liability are relieved in all or in part may the
recognition of the financial liability be terminated in all or partly.
2) The classification, recognition and measurement of financial assets and financial liabilities
(1) The financial assets or financial liabilities which are measured at their fair value and the
variation of which is recorded into the profits and losses of the current period
The interest rate or cash dividend which was gained in the when the financial assets held by the
Company are measured at its fair value and of which the variation is recorded into the profits and
losses in the current period shall be recognized as investment income. On Balance Sheet Date, the
change in the fair value of the financial asset or financial liability which is measured at its fair
value and of which the variation is recorded into the profits and losses of the current period, shall
be recorded into the profits and losses of the current period; when the said financial assets or
financial liabilities are on disposal, the difference between the fair value and the amount in initial
account shall be recognized as investment income, meanwhile, the profits and loses arising from
the change in fair value shall be adjusted.
(2) The investments which will be held to their maturity
The investments which will be held to their maturity will regard the sum between the gained fair
value and the transaction expense thereof as the initially recognized amount. The interest on bonds
in payment, of which the mature interest is not drawn, shall be solely recognized as the
receivables.
The interest revenue which is measured and recognized by the post-amortization cost and actual
interest rate during the holding period of held-to-maturity investment shall be recorded into
investment income. The actual interest rate which is recognized in the period of gaining the
held-to-maturity investment, shall remained unchanged within the predicted term of existence or
within a shorter applicable term of the said investment. The little difference between actual
interest rate and coupon rate shall be recorded into the profits of losses in the current period.
When the held-to-maturity investments are on disposal, the difference between the obtained price
and investment book value shall be recorded into the profits and losses in the current period.
(3) Accounts receivable
The creditor’s right receivable formed during the Company selling commodity outside or offering
labour shall be regarded as the initial recognized amount in accordance with the receivable price
stipulated in the contract or agreement signed between the Company and the buyers.
When the Company recovers or disposes the accounts receivable, the difference between the
obtained price and the book value of the accounts receivable shall be recorded into the profits and
losses in the current period.
(4) Financial assets available for sale
The available-for-sale financial assets will be regarded at the initial recognized amount in
accordance of the sum between the fair value obtained from the said financial assets and the
transaction expense thereof. The interest on bonds of which the mature interest rate is not drawn in
the payment or the cash dividend which is declared but not extended in the payment shall be
solely recognized as the receivables.
The interest rate or cash dividend gained during the period of holding the available-for-sale
financial assets shall be recorded into investment income. On balance sheet date, the financial
assets shall be measured through fair value, while the change in fair value is recorded into capital
reserves (other capital reserves).
When the financial assets are on disposal, the difference between the obtained price and the book
value of the financial assets shall be recorded into investment income, meanwhile, the amount on
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proposal transferring out from the accumulated amount which is directly recorded into
shareholders’ equity and arises from the variation of the fair value, shall be recorded into
investment income.
(5) Other financial liabilities
Other financial liabilities are regarded as the initial recognized amount in accordance with the sum
between the fair value and the transaction expense thereof. The Company shall make subsequent
measurement on other financial liabilities on the basis of the post-amortization costs.
(3) Recognition and accounting method for transfer of financial assets
(4) Recognition Conditions for Termination of Financial Liabilities
When the prevailing obligations of a financial liability are relieved in all or part may the
recognition of the financial liability be terminated in all or partly.
(5) Recognition of financial assets and financial liabilities
(1) The quotation in the active market shall be used to recognize the fair value of the financial
assets or financial liabilities existing in active market.
(2) If the financial instruments do not exist in the active market, the fair value shall be recognized
by value appraisal techniques.
(3) As for the financial assets initially obtained of produced at source and the financial liabilities
assumed, the fair value thereof shall be determined on the basis of the transaction price of the
market.
(6) Withdrawal of Impairment Provision for Financial Assets (excluding Accounts
Receivable)
The recognition standard for impairment provision of the financial assets: the Company shall carry
out an inspection, on the balance sheet day, on the carrying amount of the financial assets other
than those measured at their fair values and of which the variation is recorded into the profits and
losses of the current period. Where there is any objective evidence proving that such financial
asset has been impaired, an impairment provision shall be made.
The withdrawal method for impairment provision of the financial assets: as for the impairment
provision of the financial assets is measured on the basis of post-amortization costs, if the current
value of the predicted future cash flow of the financial assets is below the difference in the
carrying amount of the said financial asset, the impairment provision of the financial assets shall
be made; as for the impairment provision of the available-for-sale financial assets, if the
recoverable amount is below the difference in the carrying amount, the impairment provision shall
be made. Where an available-for-sale financial asset is impaired, even if the recognition of the
financial asset has not been terminated, the accumulative losses arising from the decrease of the
fair value of the owners’ equity which was directly included shall be transferred out and recorded
into the profits and losses of the current period.
(7) Notes on basis of held-to-maturity investment undue that reclassified into
available-for-sales financial assets
10. Recognition and Withdrawal Method for Bad-debt Provisions for Accounts Receivable
1) Recognition standard for bad debt provision of accounts receivable:
Receivables are considered uncollectible after liquidation with statutory procedures for debtors are
in bankrupt, due death of debtors who has no bequest and no undertaker on obligation, or caused
by debtors fail to perform their obligation to pay a debt over three years, and it will be recognized
as bad debt.
2) Withdrawal method of bad debt provision
(1) Provisions for Bad-debt Accounts Receivable with a significant single amount
The recognition standard and the withdrawal method for the bad debt More than RMB 1,000,000 (including RMB
provision of the accounts receivable with significant single amounts 1,000,000)
The Company makes an independent impairment
test on the accounts receivable with significant
single amount, and provision for bad debts shall
Withdrawal method of bad debt provision of the accounts receivable
with significant single amounts withdrawn on the basis of the balance between the
current values of the predicted future cash flow
lower than book value. Upon independent
impairment test, the accounts receivable with
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significant single amounts has not been impaired, it
shall be withdrawn bad debt provision based on
ending balance by adopting aging analysis method.
(2) Accounts receivable for which bad-debt provisions are made on the group basis
Group name Withdraw method Basis for recognition of group
Classified by its credit risk Withdrawal in accordance with the aging analysis
feature method
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Withdrawal proportion of Withdrawal proportion of other accounts
Aging
accounts receivable receivable
Within one year (including
2 2
one year)
One to two years 5 5
Two years to three years 15 15
Over three years
Three to four years 30 30
Four to five years 60 60
Over five years 100 100
In the groups, those adopting balance percentage method to withdraw bad debt provision:
□Applicable √Inapplicable
In the groups, those adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt
provision is made independently
Reason of individually withdrawing bad debt provision: As for an account receivable with an
insignificant single amount and which can not show its risk feature when withdrawing a bad-bet
provision for it on the group basis, the bad-debt provision for the account receivable shall be
withdrawn based on the difference of the expected present value of the account receivable’s future
cash flows less than its carrying amount.
Withdrawal method of bad-debt provision: The Company shall withdraw the bad-debt provision
for such an account receivable by combining the aging method and individual judgment based on
the debtor entity’s actual financial position, cash flows and other relevant information.
Withdrawal policies for bad debt reserves of related parties: according to the 9th meeting of the 4th
Board of Directors, as for the accounts receivable of the related party of the Company with
continuous operation ability, the withdrawal of bad debt reserves could not excess 60% at most.
11. Inventory
(1) Category of Inventory
Inventories of the Company include raw material, material purchasing, Self-manufactured goods,
unfinished products, finished products and low-value consumption.
(2) Pricing method
□First-in first-out method √Weighted average method □Specific identification method □Other
(3) Determination basis of the net realizable value of inventory and withdrawal method of
the provision for falling price of inventory
The inventories at the end of the reporting period will be priced according to the lower of the
product cost and the net realizable value. When all the inventories are checked roundly, for those
which were destroyed, outdated in all or in part, sold at a loss, etc, the Company shall estimate the
irrecoverable part of its cost and withdrawal the inventory falling price reserve. Where the cost of
the single inventory item is higher than the net realizable value, the inventory falling price reserve
shall be withdrawn and recorded into profits and losses of the current period. The net realizable
inventory falling price reserve refers to the value minus the predicted expense needed in the
process of completing the production and sales from the predicted price for sale when the
Company under normal operations. If the value of the inventory with falling price reserve can be
resumed, the inventory falling price reserve and the current income shall be adjusted in line with
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the increase amount by being resumed (the increase amount should be limited by the original
withdrawal amount).
(4) The inventory system is on the basis of perpetual inventory method
√ Perpetual inventory system □Periodic inventory system □Other
(5) Amortization method of low-value consumption goods and packages
Amortization method of low-value consumption goods: one time method
Amortization method of packages: one time method
12 Long-term equity investments
(1) Recognition for initial cost
The initial investment cost of the long-term equity investment shall be recognized by adopting the
following ways in accordance with different methods of acquisition:
(1) As for long-term equity investment acquired through the merger of enterprises under the same
control, it shall, on the date of merger, regard the share of the book value of the owner's equity of
the merged enterprise as the initial cost of the long-term equity investment. The difference
between acquisition cost and initial investment cost shall offset against the capital reserve. If the
capital reserve is insufficient to dilute, the retained earnings shall be adjusted.
(2) As for long-term equity investment acquired through the merger of enterprises not under the
same control, its initial investment cost shall regard as the combination cost calculated by the fair
value of the assets, equity instrument issued and liabilities incurred or undertaken on the
transaction date adding the direct cost related with the acquisition. The identifiable assets of the
combined party and the liabilities (including contingent liability) undertaken on the combining
date shall be measured at the fair value without considering the amount of minority interest. The
acquirer shall recognize the positive balance between the combination costs and the fair value of
the identifiable net assets it obtains from the acquiree as business reputation. The acquirer shall
record the negative balance between the combination costs and the fair value of the identifiable
net assets it obtains from the acquiree into the consolidated income statement directly.
(3) Long-term equity investment obtained by other means
① The initial cost of a long-term equity investment obtained by making payment in cash shall be
the purchase cost which is actually paid.
② The initial cost of a long-term equity investment obtained on the basis of issuing equity
securities shall be the fair value of the equity securities issued.
③ The initial cost of a long-term equity investment of an investor shall be the value stipulated in
the investment contract or agreement, the unfair value stipulated in the contract or agreement shall
be measured at fair value.
④ As for long-term investment obtained by the exchange of non-monetary assets, where it is
commercial in nature, the fair value of the assets surrendered shall be recognized as the initial cost
of the long-term equity investment received; where it is not commercial in nature, the book value
of he assets surrendered shall be recognized as the initial cost of the long-term equity investment
received.
⑤ The initial cost of a long-term equity investment obtained by recombination of liabilities shall
be recognized at fair value of long-term equity investment.
(2) Subsequent measurement and recognition of profits and losses
(1) An investment in the subsidiary company shall be measured by employing the cost method
Where the Company hold, and is able to do equity investment with control over an invested entity,
the invested entity shall be its subsidiary company. Where the Company holds the shares of an
entity over 50%, or, while the Company holds the shares of an entity below 50%, but has a real
control to the said entity, then the said entity shall be its subsidiary company.
(2) An investment in the joint enterprise or associated enterprise shall be measured by employing
the equity method
Where the Company hold, and is able to do equity investment with joint control with other parties
over an invested entity, the invested entity shall be its joint enterprise. Where the Company hold,
and is able to have equity investment with significant influences on an invested entity, the invested
entity shall be its associated entity. Where the Company holds the shares of an entity between 20%
and 50%, and has no real control to the said entity, or, while the Company holds the shares of an
entity below 20%, but has a significant influence to the said entity, then the said entity shall be the
joint enterprise or associated enterprise of the Company.
The Company shall, on the ground of the fair value of all identifiable assets of the invested entity
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when it obtains the investment, recognize the attributible share of the net profits and losses of the
invested entity after it adjusts the net profits of the invested entity.
If the accounting policies and accounting periods adopted by the invested entity are different from
those adopted by the Company, an adjustment shall be made to the financial statements of the
invested entity in accordance with the accounting policies and accounting periods of the Company
and recognize the investment profits or losses.
As for other change of owners’ equity excluding net gains and losses of the investing enterprise,
the book value of the long-term equity investment shall be adjusted and measured into the owner’s
equity.
(3) Long-term equity investment without control, joint control and significant influences
Long-term equity investment for which there is no offer in the active market and of which the fair
value cannot be reliably measured shall be measured by employing the cost method.
Long-term equity investment for which there is offer in the active market and of which the fair
value can be reliably shall be showed in the item “available-for-sale financial assets”, and
recorded at fair value. Change in its fair value shall be included in the shareholders’ equity.
(3) Recognition basis of joint control and significant influences to the investing enterprise
Joint control to the investing enterprise refers to the control over an economic activity in
accordance with the contracts and agreements, which does not exist unless the investing parties of
the economic activity with one an assent on sharing the control power over the relevant important
financial and operating decisions. Significant influences to the investing enterprise refers to the
power to participate in making decisions on the financial and operating policies of an enterprise,
but not to control or do joint control together with other parties over the formulation of these
policies.
(4) Method of impairment test of long-term equity investment and withdrawal method of
impairment provision
Method of impairment test of long-term equity investment: Where the long-term equity
investment with a sign of impairment, its recoverable amount shall be tested. The recoverable
amount shall be determined in light of the higher one of the net amount of the selling fair value of
the long-term equity investment and the current value of the expected future cash flow of the
long-term equity investment.
At the end of reporting period, the Company shall check the long-term equity investment. Where
there is a sign of impairment exists, the recoverable amount shall be estimated. Where its
recoverable amount is lower than its book value, the impairment of long-term investment shall be
made in light of the difference that its recoverable amount is less than its book value.
As for Long-term equity investment for which there is no offer in the active market and of which
the fair value cannot be reliably measured, where the amount that its book value is lower than the
current value due to impact upon the discount for the expected future cash flow, the current market
earnings yield of similar financial assets shall be recognized as impairment loss recording into the
profits and losses of the current period.
As for other long-term equity investment except for the available-for-sales financial assets, once
any provision for impairment is recognized, it shall not be switched back within the asset’s useful
life. The impairment loss of available-for-sales financial asset shall be switched back through
equity.
13. Investment real estates
The investment real estate shall be measured at its cost. Of which, the cost of an investment real
estate by acquisition consists of the acquisition price, relevant taxes, and other expense directly
relegated to the asset; the cost of a self-built investment real estate composes of the necessary
expenses for building the asset to the hoped condition for use. The investment real estates invested
by investors shall be recorded at the value stipulated in the investment contracts or agreements,
but the unfair value appointed in the contract or agreement shall be entered into the account book
at the fair value.
The Company shall make a follow-up measurement to the investment real estate by adopting the
cost pattern. The depreciation or amortization for investment real estate shall be made in the light
of such relevant policies as depreciation or amortization of fixed assets and intangible assets.
As for withdrawal basis of provision for impairment of investment real estates, please refer to
withdrawal method for provision for impairment of fixed assets.
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14. Fixed assets
(1) Recognition of fixed assets
Fixed assets refers to the tangible assets that simultaneously possess the features as follows: a.
They are held for the sake of producing commodities, rendering labor service, renting or business
management; b. Their useful life is in excess of one fiscal year; and c. Their unit value is higher.
The fixed assets shall be measured at its cost when obtaining. Its depreciation shall be withdrawn
by adopting straight line since the next month that bring the fixed asset to the expected conditions
for use.
(2) Recognition basis and measurement of financing leased fixed assets
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(3) Depreciation method of various fixed assets
Type Depreciable life (year) Residual rate (%) Annual depreciation rate (%)
Houses and buildings 20-40 2.50-5
Machine equipments 6-15 6.67-16.67
Electronic equipments
Transportation equipments 5-10 10-20
Other equipments 5-10 10-20
Fixed assets acquired under
-- -- --
finance lease
Including: Houses and
buildings
Machine equipments
Electronic equipments
Transportation equipments
Other equipments
(4) Methods for impairment test of fixed assets and withdrawal method of provision for
impairment
The Company shall make inspection to fixed assets at the end of reporting period. Where there is
any evidence indicates that the recoverable amount of fixed assets is lower than its book value,
such fixed asset shall be subject to an impairment test on the balance sheet date. As for the fixed
assets that its recoverable amount is lower than its book value, its provision for impairment shall
be withdrawn at the difference that recoverable amount of assets is lower than its book value. The
provision for impairment shall be withdrawn on the basis of single item assets. Where it is
difficult to do so, it shall be withdrawn on the basis of the asset group to which the asset belongs.
Once any loss of asset impairment is recognized, it shall not be switched back in the future
accounting periods.
(5) Other explanation
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15. Construction in process
(1) Categories of construction in progress
Construction in progress shall be measured at actual cost. Self-operating projects shall be
measured at direct materials, direct wages and direct construction fees; construction contract shall
be measured at project price payable; project cost for plant engineering shall be recognized at
value of equipments installed, cost of installation, trail run of projects. Costs of construction in
process also include borrowing costs and exchange gains and losses, which should be capitalized.
(2) Standardization on construction in process transferred into fixed assets and time point
The construction in process, of which the fixed assets reach to the predicted condition for use,
shall carry forward fixed assets on schedule. The one that hasn’t audit the final accounting shall
recognize the cost and make depreciation in line with valuation value. The construction in process
shall adjust the original valuation value at its historical cost but not adjust the depreciation that has
been made after auditing the final accounting.
(3) Method of impairment test of construction in process and withdrawal method of
impairment
Where a sign of impairment exists, recoverable amount of construction in process shall be tested.
The recoverable amount of construction in process shall be recognized according to the high one
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between the net amount of fair value after deducting disposal costs and the current value of the
expected future cash flow of construction in process.
At the end of fiscal year, the Company shall check the construction in process roundly. Where
there is a sign of impairment occur, the recoverable amount shall be estimated, and impairment of
construction in process shall be made in light of the difference that its recoverable amount is less
than its book value. Once any provision for impairment is recognized, it shall not be switched
back within the asset’s useful life.
16. Borrowing costs
(1) Recognition principle of capitalization of borrowing costs
The borrowing costs shall include the interest on borrowings, amortization of discounts or
premiums on borrowings, ancillary expenses, and exchange balance on foreign currency
borrowings. Where the borrowing costs occurred belong to specifically borrowed loan or general
borrowing used for the acquisition and construction of investment real estates and inventories over
one year (including one year) shall be capitalized, and record into relevant assets cost. Other
borrowing costs shall be recognized as expenses on the basis of the actual amount incurred, and
shall be recorded into the current profits and losses. The borrowing costs shall not be capitalized
unless they simultaneously meet the following three requirements: (1) The asset disbursements
have already incurred; (2) The borrowing costs have already incurred; and (3) The acquisition and
construction or production activities which are necessary to prepare the asset for its intended use
or sale have already started.
(2) The period of capitalization of borrowing costs
The borrowing costs arising from acquisition and construction of fixed assets, investment real
estates and inventories, if they meet the above-mentioned capitalization conditions, the
capitalization of the borrowing costs shall be measured into asset cost before such assets reach to
the intended use or sale, Where acquisition and construction of fixed assets, investment real
estates and inventories is interrupted abnormally and the interruption period lasts for more than 3
months, the capitalization of the borrowing costs shall be suspended, and recorded into the current
expense, till the acquisition and construction of the assets restarts. When the qualified asset is
ready for the intended use or sale, the capitalization of the borrowing costs shall be ceased, the
borrowing costs occurred later shall be included into the financial expense directly at the current
period.
(3) Period for suspending capitalization of borrowing costs
Suspension of capitalization: Where the acquisition and construction or production of a qualified
asset is interrupted abnormally and the interruption period lasts for more than 3 months, the
capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during
such period shall be recognized as expenses, and shall be recorded into the profits and losses of
the current period, till the acquisition and construction or production of the asset restarts.
(4) Measurement method of capitalization amount of borrowing costs
As for specifically borrowed loans for the acquisition and construction or production of assets
eligible for capitalization, the to-be-capitalized amount of interests shall be determined in light of
the actual cost incurred of the specially borrowed loan at the present period minus the income of
interests earned on the unused borrowing loans as a deposit in the bank or as a temporary
investment.
Where a general borrowing is used for the acquisition and construction or production of assets
eligible for capitalization, the enterprise shall calculate and determine the to-be-capitalized amount
of interests on the general borrowing by multiplying the weighted average asset disbursement of
the part of the accumulative asset disbursements minus the general borrowing by the capitalization
rate of the general borrowing used. The capitalization rate shall be calculated and determined in
light of the weighted average interest rate of the general borrowing.
17. Biological assets
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18. Oil gas assets
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19. Intangible assets
(1) Pricing method of intangible assets
(1) The cost of an outsourcing intangible asset consists of the acquisition price, relevant taxes, and
other expenses directly relegated to the asset.
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(2) The cost of self-developed intangible assets shall include the total expenditures incurred during
the period from the time when it meets the following conditions to the time when the expected
purposes of use are realized, except that the expenditures which have already been treated prior to
the said period shall not be adjusted.
① It is feasible technically to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufacturing by
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally.
④ It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources;
⑤ The development expenditures of the intangible assets can be reliably measured.
(3) The cost invested into intangible assets by investors shall be determined according to the
conventional value in the investment contract or agreement.
(4) The costs of intangible assets acquired from non-monetary assets transaction, debt
recombination, government subsides, and merger of enterprises shall be determined respectively
according to the Accounting Standard for Business Enterprises No. 7 - Non-monetary Assets,
Accounting Standard for Business Enterprises No. 12 – Debt Restructurings, Accounting Standard
for Business Enterprises No. 16 – Government Grants and Accounting Standard for Business
Enterprises No. 20 – Business Combinations.
(2) Estimated useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Notes: List of estimated useful life of each intangible asset and its basis
(3) Judgment basis of intangible assets with uncertain useful life
(4) Withdrawal of impairment provision of intangible assets
Intangible assets trending to impairment can be tested by its recoverable amount.
The recoverable amount of intangible assets shall be recognized according to the high one
between the net amount of fair value after deducting disposal costs and the current value of the
expected future cash flow of intangible assets.
At the end of fiscal year, the Company shall check the intangible assets roundly. Where there is a
sign of impairment occur, the recoverable amount shall be estimated, and impairment of intangible
assets shall be made in light of the difference that its recoverable amount is less than its book
value. Once any provision for asset impairment is recognized, it shall not be switched back within
the asset’s useful life.
(5) Criteria of dividing the research phase and development phase of internal R&D project
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(6) Calculation of the expenditures of internal R&D project
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20. Amortization method of long-term deferred expenses
Long-term deferred expanses of the Company shall be recorded in light of the actual expenditure,
and amortized averagely within benefit period. In case of no benefit in the future accounting
period, the amortized value of such project that fails to be amortized shall be transferred into the
profits and losses of the current period.
21. Assets transfer with repurchasing conditions
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22. Estimated liabilities
(1) Criteria of estimated liabilities
Only if the obligation pertinent to a contingencies shall be recognized as an estimated debts when
the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the Company;
(2) It is likely to cause any economic benefit to flow out of the Company as a result of
performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
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(2) Measurement of estimated liabilities
The Company shall measure the estimated debts in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.
The Company shall check the book value of the estimated debts on the Balance Sheet Date. If
there is any conclusive evidence proving that the said book value can’t truly reflect the current
best estimate, the Company shall, subject to change, make adjustment to carrying value to reflect
the current best estimate.
23. Share-based payment and equity instruments
(1) Categories of share-based payment
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(2) Recognition method of fair value of equity instruments
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(3) Recognition basis of the best estimate of the vested equity instruments
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(4) Accounting treatment relevant to implement, revise and terminate share-based payment
plan
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24. Repurchase of shares of the Company
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25. Revenue
(1) Criteria for recognition time of revenue from sale of goods
The recognition of the revenue from selling goods: the revenue from selling shall be recognized
by the following conditions: The significant risks and rewards of ownership of the goods have
been transferred to the buyer by the Company; the Company retains neither continuous
management right that usually keeps relation with the ownership nor effective control over the
sold goods; the relevant amount of revenue can be measured in a reliable way; the relevant
revenue and costs of selling goods can be measured in a reliable way.
(2) Recognition basis of revenue from transferring use rights of assets
When the relevant economic benefits are likely to flow into the enterprises and the amount of
revenues can be measured in a reliable way, the revenue from abalienating the right to use assets
shall be recognized.
(3) Recognition basis and method for the schedule of contracted project when recognizing
the revenue from providing labour services and construction contract by
percentage-of-completion method
The recognition of the revenue from providing labor services: When the total revenue and costs
from providing labor can be measured in a reliable way; the relevant economic benefits are likely
to flow into the enterprise; the schedule of completion under the transaction can be measured in a
reliable way, the revenue from providing labor shall be recognized.
26. Government Subsidies
(1) Category
Government grants divided into ①Government subsidies pertinent to incomes and ②Government
subsidies pertinent to assets.
(2) Accounting treatment method
The government subsidies pertinent to incomes shall be treated respectively in accordance with
the circumstances as follows: (1) Those subsidies used for compensating the related future
expenses or losses of the Company shall be recognized as deferred income and shall included in
the current profits and losses during the period when the relevant expenses are recognized; or (2)
Those subsidies used for compensating the related expenses or losses incurred to the enterprise
shall be directly included in the current profits and losses.
The government subsidies pertinent to assets shall be recognized as deferred income, equally
distributed within the useful lives of the relevant assets, and included in the current profits and
losses. But the government subsidies measured at their nominal amounts shall be directly included
61
in the current profits and losses.
27. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
According to tax law, the deductible loss and tax deduction which can deduct the taxable amount
in the subsequent years, regarding as temporary difference, shall be recognized as the
corresponding deferred income tax assets.
(2) Recognition basis of deferred income tax liabilities
28. Operating lease and finance lease
(1) Accounting treatments of operating lease
Naught
(2) Accounting treatments of finance lease
Naught
29. Assets held for sale
(1) Recognition criteria of available-for-sale assets
Naught
(2) Accounting treatments of the assets held for sale
Naught
30. Capitalization of assets business
Naught
31. Hedging accounting
Naught
32. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the reporting period?
□Yes √No
(1) Change of accounting policies
Were the main accounting policies changed during the reporting period?
□Yes √No
(2) Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
□Yes √No
33. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
□Yes √No
(1) Retrospective restatement method
Was any previous accounting errors adopting retrospective restatement method discovered in the
reporting period?
□Yes √No
(2) Prospective application method
Was any previous accounting errors adopting prospective application method discovered in the
reporting period?
□Yes √No
34. Other main accounting policies, accounting estimates as well as compilation method of
financial statements
Naught
(Ⅴ) Taxation
1. Main taxes and tax rate
Type of tax Taxation basis Tax rates
VAT Payable to sales revenue 13%、17%
Consumption tax
Business tax Taxable operating revenue 5%
Tax paid in accordance with the
Urban maintenance and construction tax Taxable turnover amount
tax regulations of tax units location
62
Taxable income of parent company
and subsidiary company 15%
Changwan
Enterprise income tax
Taxable income of other
25%
subsidiary companies
70% of original value of 12%
independent properties
Property tax
Taxable income of other 1.2%
subsidiary companies
Education expense surtax Tax paid in accordance with the
Taxable turnover amount
tax regulations of tax units location
2. Tax preference and approved document
In 2009, the Company has been identified as High-tech Enterprises, therefore, it enjoys 15-percent
preferential rate for corporate income tax; the Company’s controlling subsidiary—Changchai
Wanzhou Diesel Engine Co., Ltd., the controlling subsidiary company, shall pay the corporate
income tax at tax rate 15% from 1 Jan. 2011 to 31 Dec. 2020 in accordance with the Notice of the
Ministry of Finance, the General Administration of Customs of PRC and the National
Administration of Taxation about the Preferential Tax Policies for the Western Development.
3. Other explanation
Naught
(Ⅵ) Business combination and consolidated financial statements
General instruction of business combination and consolidated financial statements:naught
1. Subsidiaries
63
(1) Subsidiaries obtained by establishment or investment
Unit: RMB Yuan
Balance of parent
The
The company’s equity after
Actual propor Included
proportio deducting the
amount of tion of in Deductible
Business Registered Business Other essential n of Minority difference that loss of
Subsidiaries Type Registered place investments holdin consolida minority
nature capital scope investment voting interest minority interests
at the g ted interests
rights exceed equity obtained
period-end shares statement
（%） by minority
（%）
shareholders
No. 1101,
Changchai
Limited Xiamen Road, Production
Wanzhou Diesel 35000000.0 21000000.0
Liability Wanzhou Industry and sales of 60 60 Yes 7,671,888.33
Engine Co., Ltd. 0 0
Company District, diesel engine
(Changwan)
Chongqing
Changzhou
Production
Changchai Benniu Limited Nanguan Village,
33786400.0 and sales of 25339800.0
Diesel Engine Liability Benniu Town, Industry 75 75 Yes 13,930,989.61
0 diesel engine 0
Fittings Co., Ltd. Company Wujin District
fittings
(Benniu)
External
Changzhou enterprise
Limited No. 123, Huadei
Housheng Service 30000000.0 investments, 30000000.0
Liability Middle Road, 100 100 Yes
Investment Co., industry 0 investment 0
Company Changzhou
Ltd (Housheng) management,
consultancy
64
service
Purchasing,
sales and
technical
service of
starting
engine of
diesel
engine,
1 Ang Mo Kio gasoline
Chansun Limited Industrial Park engine,
Service USD 0.2 USD 0.2
International (Pte.) Liability 2A#05-12,Amk components, 100 100 Yes
industry million million
Ltd. (Chansun) Company Tech 1,Singapore supporting
(Singapore) equipment of
starting
engine of
diesel engine
and gasoline
engine,
agricultural
equipments
etc.
Other notes to subsidiaries obtained by establishment or investment:
Naught
65
(2) Subsidiaries obtained through business combination under the same control
□ Applicable √ Inapplicable
Other notes: Naught
（3）Subsidiaries obtained through business combination not under the same control
□ Applicable √ Inapplicable
Other notes: Naught
2. Special purpose entities or operating entities with control right formed by entrusted operation or lease
□ Applicable √ Inapplicable
Other explanation on special purpose entities or operating entities with control right formed by entrusted operation
or lease:
Naught
3. Explanation on changes in consolidated scope
Explanation on changes in consolidated scope:
□ Applicable √ Inapplicable
4. Subsidiaries that newly combined into consolidation scope and not longer included in the consolidated
scope in the reporting period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or
lease that newly included in the consolidated scope
□ Applicable √ Inapplicable
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or
lease that not longer included in the consolidated scope
□ Applicable √ Inapplicable
Other notes of subsidiaries that newly combined into consolidation scope and not longer included in the
consolidated scope in the reporting period: Naught
5. Business combination under same control during the reporting period
□ Applicable √ Inapplicable
Other notes to business combination under same control: Naught
6. Business combination not under same control during the reporting period
□ Applicable √ Inapplicable
66
Other notes to business combination not under same control:
Naught
7. Subsidiaries reduced by selling equities without control right during the reporting period
□ Applicable √ Inapplicable
Other notes to subsidiaries reduced by selling equities without control right during the reporting period:
Naught
8. The counter purchases in the reporting period
□ Applicable √ Inapplicable
Other notes to counter purchases:
Naught
9. Mergers in the reporting period
□ Applicable √ Inapplicable
Other notes to mergers:
Naught
10. Exchange rates of major items in financial statements for foreign entities
67
(Ⅶ) Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Closing balance Opening balance
Item Amount in foreign Exchan Amount in Exchange
Amount in RMB Amount in RMB
currency ge rate foreign currency rate
Cash: -- -- 563,489.03 -- -- 1,512,744.56
RMB -- -- 563,489.03 -- -- 1,512,744.56
Bank deposit: -- -- 558,503,623.00 -- -- 468,780,298.64
RMB -- -- 555,379,426.40 -- -- 459,567,621.38
USD 271,088.63 6.3249 1,714,608.48 132,369.38 6.3009 834,046.23
EUR 180,325.72 7.8169 1,409,588.12 979,659.77 8.1625 7,996,472.88
HKD 471,392.81 0.8107 382,158.15
Other monetary funds: -- -- 104,329,734.53 -- -- 83,449,623.61
RMB -- -- 104,329,734.53 -- -- 83,449,623.61
Total -- -- 663,396,846.56 -- -- 553,742,666.81
Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen, deposited overseas or with
potential collecting risks: naught
Other monetary funds as at period-end were of allowance for bank acceptance bill.
2. Trading financial assets
(1)Trading financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Trading bonds investment
Trading equity instruments investment
The financial assets which are measured at their
fair values and the variation of which is recorded
into the profits and losses of the current period
Derivative financial assets
68
Hedging instruments
Others
Total
(2) Trading financial assets with realizable limit
□Applicable √Inapplicable
(3) Hedging instruments and notes to relevant hedging transaction
□Applicable √ Inapplicable
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance bill 143,007,349.44 181,698,938.60
Total 143,007,349.44 181,698,938.60
(2) Notes receivable pledged at period-end
□Applicable √Inapplicable
(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or
agreement, and undue notes endorsed to other parties at the end of the period
Unit: Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- --
Notes: naught
Undue notes endorsed to other parties by the Company
Unit: Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Dongfeng Automobile
2012-2-20 2012-8-16 6,345,000.00
Co., Ltd.
Sichuan South Chun 2012-3-6 2012-9-6 5,000,000.00
69
Auto Group Company
Limited
Chongqing Huitian
Machinery 2012-3-20 2012-9-20 5,000,000.00
Manufacture Company
Changzhou Dongfeng
Agricultural
2012-6-27 2012-12-27 3,000,000.00
Machinery Group Co.,
Ltd
Changzhou Dongfeng
Agricultural
2012-5-25 2012-11-25 3,000,000.00
Machinery Group Co.,
Ltd
Total -- -- 22,345,000.00 --
Notes: naught
Notes of bank acceptance bill that already discounted or pledged: naught
4. Dividends receivable
□Applicable √ Inapplicable
5. Interest receivable
(1) Interest receivable
□Applicable √ Inapplicable
(2) Overdue interest
□Applicable √ Inapplicable
(3) Notes to interest receivable
6. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
70
(%) (%) (%) (%)
Accounts receivable with
significant single amount
16,131,946. 16,103,15 16,721,81 16,563,470.4
and individually 2.41 99.82 2.85 99.05
05 7.15 6.70 7
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
652,897,5 210,853,6 569,108, 208,429,893
Aging group 97.52 32.30 97.15 36.62
12.94 81.80 825.48 .16
652,897,5 210,853,6 569,108, 208,429,893
Subtotal of the groups 97.52 32.30 97.15 36.62
12.94 81.80 825.48 .16
Accounts receivable with
insignificant single
amount but individually 460,313.32 0.07 460,313.32 100.00
withdrawn bad debt
provision
669,489,77 227,417,15 585,830, 224,993,363
Total 100.00 33.97 100.00 38.41
2.31 2.27 642.18 .63
Notes to category of accounts receivable: naught
Accounts receivable with significant single amount and individually withdrawn bad debt provision
√Applicable □Inapplicable
Unit: RMB Yuan
Provision for bad Withdrawal Reason for
Content Book balance
debts proportion withdrawal
With difficulty to
ANHUI FEICAI VEHICLE CO. 6,215,662.64 99.54%
6,186,873.74 recover
HEILONGJIANG PROVINCE
With difficulty to
COAST IMPORT & EXPORT 100.00%
recover
CORP 2,584,805.83 2,584,805.83
ZHEJIANG SANLIAN
With difficulty to
AGRICULTURAL MACHINERY 100.00%
recover
CO. 1,902,326.58 1,902,326.58
FUPING WEIPING
With difficulty to
AGRICULTURAL MACHINERY 100.00%
recover
CO., LTD. 5,429,151.00 5,429,151.00
Total 16,131,946.05 16,103,157.15 99.82%
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Unit: RMB Yuan
71
Closing balance Opening balance
Book balance Book balance
Aging Provision for bad Provision for
Proportio Proportio
Amount debts Amount bad debts
n n
Within 1 year
Including -- -- -- -- -- --
Within 1 year 449,185,450.74 68.80 16,462,521.93 358,562,242.32 63.00 6,084,715.45
Subtotal of
449,185,450.74 68.80 16,462,521.93 358,562,242.32 63.00 6,084,715.45
within 1 year
1-2 years 3,885,009.31 0.60 198,778.07 2,136,812.95 0.38 106,840.65
2-3 years 5,778,687.39 0.89 875,394.37 6,360,569.29 1.12 954,085.39
Over 3 years 194,048,365.50 29.72 193,316,987.40 202,049,200.92 35.5 201,284,251.67
3 to 4 years 499,785.97 0.08 152,778.09 363,996.39 0.06 109,198.92
4 to 5 years 985,379.36 0.15 601,009.17 1,275,379.44 0.22 765,227.66
Over 5 years 192,563,200.17 29.49 192,563,200.17 200,409,825.09 35.22 200,409,825.09
Total 652,897,512.94 100.00 210,853,681.80 569,108,825.48 100.00 208,429,893.16
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √ Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable √ Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√Applicable □Inapplicable
Provision for bad Withdrawal Reason for
Content Book balance
debts proportion withdrawal
ZHEJIANG SANLIAN
With difficulty to
AGRICULTURAL MACHINERY 233,100.00 100
recover
CO. 233,100.00
FUPING WEIPING
With difficulty to
AGRICULTURAL MACHINERY 227,213.32 100
recover
CO., LTD. 227,213.32
Total 460,313.32 460,313.32 100
(2) Accounts receivable reversed or collected in the reporting period
□Applicable √ Inapplicable
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount but
individually made impairment test at the end of reporting period:
72
□Applicable √ Inapplicable
Notes to accounts receivable with insignificant single amount but large risks of groups after grouped by credit risks features: no
(3) The write-off accounts receivable
□Applicable √ Inapplicable
Notes to write off of accounts receivable: naught
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting rights of
the Company
□Applicable √ Inapplicable
(5) Information of top 5 accounts receivable:
Unit: RMB Yuan
The relationship with the
Name of entity Amount Aging Proportion
Company
CHANGZHOU
DONGFENG
AGRICULTURAL Customer 57,976,571.41 Within 1 year 8.66
MACHINERY GROUP
CO., LTD
SHANDONG
WUZHENG (GROUP) Customer 52,833,531.80 Within 1 year 7.89
CO., LTD.
DONGFENG
AUTOMOBILE CO., Customer 43,709,397.96 Within 1 year 6.53
LTD.
SHENYANG JINBEI
VEHICLE
Customer 24,776,779.12 Within 1 year 3.70
MANUFACTURING
CO., LTD
GUANGDONG FUDI
AUTOMOBILE CO., Customer 15,565,396.49 Within 1 year 2.32
LTD.
Total -- 194,861,676.78 -- 29.11
(6) The amounts due from related parties
□Applicable √ Inapplicable
73
(7) Information of accounts receivable that terminated recognition
□Applicable √ Inapplicable
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount of
assets and liabilities arising from further involvement
□Applicable √ Inapplicable
7. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Category Balance Balance
debts debts
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Other accounts
receivable that is
4,504,630.6 4,356,216.8 4,504,630.6
individually significant 7.69 96.71 9.85 96.71
8 7 8 4,356,216.87
and provisions for bad
debts individually
Other accounts receivable that provisions for bad debts by group
52,035,031. 30,135,114. 39,209,198. 28,336,153.1
Aging group 88.87 57.91 85.75 72.27
91 80 49 3
52,035,031. 30,135,114. 39,209,198. 28,336,153.1
Subtotal of group 88.87 57.91 85.75 72.27
91 80 49 3
Other accounts
receivable that is
2,010,948.1 1,969,759.6 2,010,948.1
individually insignificant 3.44 97.95 4.40 1,969,759.64 97.95
6 4 6
but provisions for bad
debts individually
58,550,610. 36,461,091. 45,724,777.3
Total 100.00 62.27 100.00 34,662,129.64 75.81
75 31 3
Notes for categories of other accounts receivable: naught
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√Applicable □Inapplicable
Unit: RMB Yuan
Provision for bad Withdrawal
Content Book balance Reason
debts proportion
74
Changchai Group
With difficulty to
Import & Export Co., 2,853,188.02 2,853,188.02 100.00
recover
Ltd.
With difficulty to
Other customers 1,651,442.66 1,503,028.85 91.01
recover
Total 4,504,630.68 4,356,216.87 --
In the group, other accounts receivable that provisions for bad debts by aging analysis:
√Applicable □Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Book balance Book balance
Aging Provision for bad Provision for bad
Proporti Proporti
Amount debts Amount debts
on on
Within 1 year
Including:
Within 1 year 22,565,519.77 43.37 4,669,715.13 7,377,718.42 18.82 147,554.36
Subtotal of within 1 year 22,565,519.77 43.37 4,669,715.13 7,377,718.42 18.82 147,554.36
1-2 years 2,004,696.09 3.85 100,324.47 1,808,630.66 4.61 90,431.54
2-3 years 2,387,006.79 4.59 350,112.74 2,196,917.70 5.60 329,537.66
Over 3 years 25,077,809.26 48.19 25,014,962.46 27,825,931.71 70.97 27,768,629.57
3 to 4 years 90,456.14 0.17 28,394.51 80,530.00 0.21 24,159.00
4 to 5 years 1,986.74 0.00 1,201.57 2,327.86 0.01 1,396.72
Over 5 years 24,985,366.38 48.02 24,985,366.38 27,743,073.85 70.75 27,743,073.85
Total 52,035,031.91 100.00 30,135,114.80 39,209,198.49 100.00 28,336,153.13
In the group, other accounts receivable that provisions for bad debts by balance percentage:
□Applicable √ Inapplicable
In the group, other accounts receivable that provisions for bad debts by other methods:
□Applicable √ Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√Applicable □Inapplicable
Unit: RMB Yuan
Content Book balance Provision for bad debts Withdrawal proportion Reason
Jie Hua mechanical and
electrical limited 377,033.06 377,033.06 100
company of Anhui
Wuxi tank factory 205,095.61 205,095.61 100
Other 1,428,819.49 1,387,630.97 97.12 Of small amount that
75
difficult to recover
Total 2,010,948.16 1,969,759.64 97.95 --
(2) Information of other accounts receivable reversed or recovered in the reporting period
□Applicable √ Inapplicable
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable:
□Applicable √ Inapplicable
Notes of individually insignificant but was of big risk after grouped by credit risk features other accounts receivable:
□Applicable √ Inapplicable
(3) Information of other accounts receivable written off in the reporting period
□Applicable √ Inapplicable
Notes of written-off of other accounts receivable:naught
(4) Other accounts receivable is due from shareholders with more than 5% (including 5%) of the voting
shares of the Company
□Applicable √ Inapplicable
(5) Nature or details of other significant accounts receivable
□Applicable √ Inapplicable
(6) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship with the Proportion of the total
Name of entity Amount Aging
Company (%)
East China Casting
Customer 6,000,000.00 Within 1 year 10.25
General Factory
Huachi Casting Factory Customer 4,000,000.00 Within 1 year 6.83
Changzhou Vehicle Co.,
Customer 3,879,038.74 Over 5 years 6.63
Ltd.
Changzhou Compressor
Customer 2,940,000.00 Over 5 years 5.02
Company
Changchai Group Import
Customer 2,853,188.02 Over 5 years 4.87
& Export Co., Ltd.
Total -- 19,672,226.76 -- 33.60
76
(7) Information of the amounts due from related parties
□Applicable √ Inapplicable
(8) Information of other accounts receivable that terminated recognition
□Applicable √ Inapplicable
(9) If securitization is carried out on other accounts receivable as the underlying assets, please list amount
of assets and liabilities arising from further involvement
□Applicable √ Inapplicable
8. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 33,888,227.74 96.95 41,855,442.46 97.60
1 year to 2
56,489.31 0.16 41,410.36 0.10
years
2 years to 3
101,875.64 0.29 99,255.83 0.23
years
Over 3 years 907,531.96 2.60 886,767.86 2.07
Total 34,954,124.65 100.00 42,882,876.51 100.00
Notes of aging of prepayment: naught
(2) Information of the top 5 prepayment
Unit: RMB Yuan
Relationship
Name of entity with the Amount Aging Reason for unsettled
Company
Xuzhou East China Casting General Under normal settlement
Supplier 8,726,512.30 Within 1 year
Factory period
Jingsu Changzhou Power Supply Under normal settlement
Supplier 7,100,000.00 Within 1 year
Company Copyright period
Ningbo Jingxin Die Casting Mold Under normal settlement
Supplier 1,370,000.00 Within 1 year
Research Company period
77
China CTDI Engineering Under normal settlement
Supplier 1,080,000.00 Within 1 year
Corporation period
Changzhou Central China Under normal settlement
Supplier 810,000.00 Within 1 year
Construction Engineering Co., Ltd. period
Total -- 19,086,512.30 -- --
Notes of important companies of prepayment: naught
(3) Information about prepayment due from shareholders with more than 5% (including 5%) of the voting
shares of the Company in prepayment
□Applicable √ Inapplicable
(4) Notes of prepayment: naught
9. Inventory
(1) Category
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment of Impairment of
Book balance Book value Book balance Book value
inventories inventories
Raw materials 137,926,539.80 2,639,364.71 135,287,175.09 86,165,455.13 2,639,364.71 83,526,090.42
Construction
117,860,972.32 11,327,352.60 106,533,619.72 118,591,032.59 11,327,352.60 107,263,679.99
contract assets
Inventory goods 143,867,456.96 4,418,906.86 139,448,550.10 276,442,342.59 4,418,906.86 272,023,435.73
Turnover material 326,751.30 326,751.30 517,096.51 517,096.51
Consumable
biological assets
Consign for process
5,872,170.64 5,872,170.64 7,737,438.73 7,737,438.73
materials
Total 405,853,891.02 18,385,624.17 387,468,266.85 489,453,365.55 18,385,624.17 471,067,741.38
(2) Impairment of inventories
Unit: RMB Yuan
Withdrawal in the Decrease in the reporting period
Category Opening book value Closing book balance
reporting period Reversal Written off
Raw materials 2,639,364.71 2,639,364.71
Construction contract 11,327,352.60 11,327,352.60
78
assets
Inventory goods 4,418,906.86 4,418,906.86
Turnover material
Consumable biological
assets
Total 18,385,624.17 18,385,624.17
(3) Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for falling
Item Reasons for reversal provision for impairment of
price of inventories
inventories to closing balance
Book cost is higher than
Raw materials
realizable net value
Book cost is higher than
Inventory goods
realizable net value
Book cost is higher than
Construction contract assets
realizable net value
Turnover material
Consumable biological assets
Consign for process materials
Notes of inventory: naught
10. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Deferred insurance cost 85,122.78
Total 85,122.78
Notes of other current assets:
11. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Available-for-sale bonds
79
Available-for-sale equity instruments 516,881,000.00 420,057,000.00
Others
Total 516,881,000.00 420,057,000.00
In the reporting period, the Company reclassified the held-to-maturity investment into available-for-sale financial assets, a total of
RMB0.00 was reclassified, which takes 0% of total matured investment before reclassification.
Notes of available-for-sale financial assets: The above-mentioned available-for-sale equity instrument includes the shares of Foton
Motor and of Jiangsu Expressway held by the Company. The Closing fair market price of the shares is closing price on the last
trading day at the securities exchange.
(2) Long-term liability investment of available-for-sale financial assets
□Applicable √ Inapplicable
Notes of long-term liability investment of available-for-sale financial assets: naught
12. Held-to-maturity investment
(1) Information
□Applicable √ Inapplicable
Notes of held-to-maturity investment:
(2) Information of held-to-maturity investment sold in the reporting period but was not matured
□Applicable √ Inapplicable
Notes of undue held-to-maturity investment sold in the reporting period: naught
13. Long-term accounts receivable
□Applicable √ Inapplicable
14. Investment to joint ventures and associated enterprises
Unit: Ten thousand Yuan
Percent Voting Total
age of percent operatio
Nature Nature Total
Registra Legal Register holding age of Total Net n
of of Currenc closing
Name of investee tion represe ed shares the closing closing revenue
enterpri busines y liabilitie
place ntative capital of the Compa assets assets of the
ses s s
Compa ny in reportin
ny investee g period
I. Joint ventures
There wasn’t any
80
joint venture in the
Company
II. Associated enterprises
Changzhou Fuji
Limited
Changchai Robin Changz Shijing US
compan Industry 33 33 8241.09 2609.83 5631.26 9316.60 16.22
Diesel Engine Co., hou Qijie $450
y
Ltd.
Beijing Tsinghua
Limited Chen
Investment RMB10
compan Beijing Zhangw Service 25 25 218.77 203.49 15.28
Management Co., 00
y u
Ltd.
Notes if significant differences exists between the important accounting policies and accounting estimations of joint ventures,
associated enterprises and the Company: naught
15. Long-term equity investment
81
(1) List of long-term equity investment
Unit: RMB Yuan
Explanation for
indifferences
Withdrawn
between the
Share holding Voting impairment Cash bonus in
Accounting Initial Opening Increase/decrea share holding Impairment
Investee Closing balance percentage in percentage in provision in the the reporting
method investment cost balance se percentage and provision
investee investee reporting period
voting
period
percentage in
investee
Changzhou
Fuji Changchai
Robin Diesel Equity method 12,294,546.00 18,563,414.34 53,526.00 18,616,940.34 33 33
Engine Co.,
Ltd.
Beijing
Tsinghua
Investment Equity method 2,500,000.00 25 25 44,182.50
Management
Co., Ltd.
Jiangsu Bank Cost method 38,000,000.00 38,000,000.00 38,000,000.00
Chengdu
Changwan
Cost method 510,000.00 510,000.00
Diesel Engine
Markeing Corp.
Chongqing Cost method 290,000.00 290,000.00
82
Wanzhou
Changwan
Diesel Engine
Fitting Corp.
Qidong
Liantong
Cost method 7,200,000.00 7,200,000.00 7,200,000.00 4 4
Dynamometer
Co., Ltd.
Other Cost method 410,000.00 410,000.00
Total -- 61,204,546.00 63,763,414.34 53,526.00 63,816,940.34 1,254,182.50
83
(2) Information of the limitation on the capability to transfer capital to investee
□Applicable √ Inapplicable
Notes of long-term equity investment: ① Beijing Tshinghua Industrial Investment Management Co., Ltd. has stopped to produce or
operate, so no impairment provision was withdrawn.
②Others: RMB 20,000 was invested to Changzhou Economic and Technology Development Company, RMB 100,000 was invested
to Changzhou Tractor Plant, RMB 200,000 was invested to Industry Fund Fraternity of Changzhou Economic & Trade Commission,
RMB 90,000 was invested to Beijing Project Machine Agricultural Machinery Co., Ltd.. The above four items were hard to take back
fully withdrawn impairment provision.
16. Investment property
(1) Investment property calculated by cost
√Applicable □Inapplicable
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening book balance Closing book balance
period reporting period
I. Total original book
87,632,571.14 87,632,571.14
value
1. Houses & buildings 87,632,571.14 87,632,571.14
2. Land use right
II. Accumulated
depreciation and
21,518,177.91 1,104,170.40 22,622,348.31
accumulated
amortization
1. Houses & buildings 21,518,177.91 1,104,170.40 22,622,348.31
2. Land use right
III. Total net book
value of investment 66,114,393.23 65,010,222.83
property
1. Houses & buildings 66,114,393.23 65,010,222.83
2. Land use right
IV. Accumulated
provision for
impairment of
investment property
1. Houses & buildings
84
2. Land use right
V. Total book value of
66,114,393.23 65,010,222.83
investment property
1. Houses & buildings 66,114,393.23 65,010,222.83
2. Land use right
Unit: RMB Yuan
The reporting period
Depreciation and amortization of the reporting period 1,104,170.40
Withdrawal amount for impairment of investment property in the
reporting period
(2) Investment property calculated by fair value
□Applicable √ Inapplicable
Notes of investment property that altered calculated mode and failed to accomplish certification of property, and notes of reason that
the fail accomplish and estimated accomplish date:
There was no investment property that altered calculated mode and failed to accomplish certification of property in the reporting
period.
17. Fixed assets
(1) Information
Unit: RMB Yuan
Opening book Decrease in the Closing book
Item Increase in the reporting period
balance reporting period balance
I. Total original book value 943,044,175.42 130,016,699.67 28,839,452.61 1,044,221,422.48
Including: Property and 8,469,394.39
353,404,024.78 14,287,302.18 347,586,116.99
building
Machineries 529,783,840.23 117,989,230.44 12,397,276.09 635,375,794.58
Vehicles 24,588,205.00 2,005,396.54 405,634.39 26,187,967.15
Other equipment 35,268,105.41 1,552,678.30 1,749,239.95 35,071,543.76
Opening book Increase in Withdrawal in Decrease in current Closing book
--
balance current period current period period balance
II. Accumulated
499,232,847.78 28,962,939.75 18,453,022.55 509,742,764.98
depreciation
Including: Property and 5,998,245.67
162,424,405.18 6,500,258.46 161,922,392.39
building
85
Machineries 295,446,429.47 20,454,885.30 10,167,058.48 305,734,256.29
Vehicles 15,023,727.56 1,051,239.34 296,458.07 15,778,508.83
Other equipment 26,338,285.57 1,458,569.44 1,489,247.54 26,307,607.47
Opening book Closing book
-- --
balance balance
III. The net book value of
443,811,327.64 -- 534,478,657.50
fixed assets
Including: Property and
190,979,619.60 -- 185,663,724.60
building
Machineries 234,337,410.76 -- 329,641,538.29
Vehicles 9,564,477.44 -- 10,409,458.32
Other equipment 8,929,819.84 -- 8,763,936.29
IV. Total impairment
14,907,753.01 -- 12,054,372.74
provision
Including: Property and
11,344,597.44 -- 8,491,217.17
building
Machineries 3,563,155.57 -- 3,563,155.57
Vehicles --
Other equipment --
V. Total book value of fixed
428,903,574.63 -- 522,424,284.76
assets
Including: Property and
179,635,022.16 -- 177,172,507.43
building
Machineries 230,774,255.19 -- 326,078,382.72
Vehicles 9,564,477.44 -- 10,409,458.32
Other equipment 8,929,819.84 -- 8,763,936.29
Depreciation amount of this reporting period was of RMB 28,962,939.75, RMB 75,782,361.65 was transferred into fixed assets from
construction project in the reporting period.
(2) Temporary idle fixed assets
□Applicable √ Inapplicable
(3) Fixed assets leased in from financing lease
□Applicable √ Inapplicable
86
(4) Fixed assets leased out from operation lease
□Applicable √ Inapplicable
(5) Information of hold-for-sale fixed assets at period-end
□Applicable √ Inapplicable
(6) Information of fixed assets failed to accomplish certification of property
□Applicable √ Inapplicable
18. Construction in progress
(1)
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Experimental workshop of
23,202,326.57 23,202,326.57 59,875,894.80 59,875,894.80
technology center
Renovation of casting 11,868,635.22 11,868,635.22 20,456,473.34 20,456,473.34
Expansion capacity of
multi-cylinder (The 2nd 4,558,057.27 4,558,057.27 6,076,901.32 6,076,901.32
Period)
Non-road electric generator
336,503.39 336,503.39 9,184,990.93 9,184,990.93
Project
Base of land in Hehai Road 33,413,009.10 33,413,009.10 9,852,533.55 9,852,533.55
Access System Project of
1,326,828.60 1,326,828.60 1,060,894.50 1,060,894.50
Electrical Substation
Reform of Cylinder Casting
4,726,400.00 4,726,400.00 3,736,400.00 3,736,400.00
Workshop
Japan Dongjiu Molding
7,492,416.30 7,492,416.30 7,482,462.30 7,482,462.30
Machine
Casting Cooling Lines 4,358,974.35 4,358,974.35 4,358,974.35 4,358,974.35
80t/h Sand Conditioning
7,439,596.88 7,439,596.88 2,046,153.84 2,046,153.84
System of Clay Sand
Production Line of Crankcase
1,493,076.90 1,493,076.90 696,769.22 696,769.22
Guard
87
Medium frequency electric
13,888,888.87 13,888,888.87
furnace
Equipment to be installed and
20,501,303.81 20,501,303.81 55,889,629.18 55,889,629.18
payment for projects
Total 134,606,017.26 134,606,017.26 180,718,077.33 180,718,077.33
88
(2) Significant changes in construction in progress
Unit: RMB Yuan
Including:
Project input Capitalization
Opening Increase in Transferred to Other Project Capitalization capitalization Source of
Name of project Budget percentage of of interest rate Closing balance
balance current period fixed assets decrease process of interest of interest funding
budget (%)
this period
Experimental workshop
59,875,894.80 1,678,096.50 38,351,664.73 Self finance 23,202,326.57
of technology center
Renovation of casting 20,456,473.34 12,507,403.85 21,095,241.97 Self finance 11,868,635.22
Expansion capacity of
multi-cylinder (The 2nd 6,076,901.32 4,151,087.18 5,669,931.23 Self finance 4,558,057.27
Period)
Non-road electric
9,184,990.93 1,817,036.18 10,665,523.72 Self finance 336,503.39
generator Project
Base of land in Hehai
9,852,533.55 23,560,475.55 Self finance 33,413,009.10
Road
Access System Project
1,060,894.50 265,934.1 Self finance 1,326,828.60
of Electrical Substation
Reform of Cylinder
3,736,400.00 990,000.0 Self finance 4,726,400.00
Casting Workshop
Japan Dongjiu Molding
7,482,462.30 9,954.0 Self finance 7,492,416.30
Machine
Casting Cooling Lines 4,358,974.35 0.0 Self finance 4,358,974.35
89
80t/h Sand
Conditioning System of 2,046,153.84 5,393,443.0 Self finance 7,439,596.88
Clay Sand
Production Line of
696,769.22 796,307.7 Self finance 1,493,076.90
Crankcase Guard
Medium frequency
13,888,888.87 Self finance 13,888,888.87
electric furnace
Total 124,828,448.15 65,058,626.93 75,782,361.65 114,104,713.45
Notes of significant changes in construction in progress: naught
There was no particular about realizable net value is lower than book value on closing construction in progress, then there was no provision for impairment.
There was no particular about closing construction in progress be used for pledged guarantee.
90
(3) Impairment provision of construction in progress
□Applicable √ Inapplicable
(4) Information of procedures of significant construction in progress
□Applicable √ Inapplicable
(5) Notes of construction in progress: naught
19. Engineering materials
□Applicable √ Inapplicable
20. Clearance of fixed assets
□Applicable √ Inapplicable
Notes of clearance process of fixed assets with a clearance term of over 1 year since the transfer into fixed assets: Naught
21. Productive biological assets
(1) Calculated by cost
□Applicable √ Inapplicable
(2) Calculated by fair value
□Applicable √ Inapplicable
22. Oil and gas assets
□Applicable √ Inapplicable
23. Intangible assets
(1) Information
Unit: RMB Yuan
Increase in the reporting Decrease in the reporting
Item Opening balance Closing balance
period period
I. Total original book
117,212,266.30 117,212,266.30
value
Land use right 117,212,266.30 117,212,266.30
91
II. Accumulated
28,885,187.96 1,131,733.20 30,016,921.16
amortization
Land use right 28,885,187.96 1,131,733.20 30,016,921.16
III. Total net book value of
88,327,078.34 87,195,345.14
intangible assets
Land use right 88,327,078.34 87,195,345.14
IV. Total impairment
provision
Land use right
Total book value of
88,327,078.34 87,195,345.14
intangible assets
Land use right 88,327,078.34 87,195,345.14
Amortization was of RMB 1,131,733.20 in the reporting period.
(2) Company development expense
□Applicable √ Inapplicable
(3) Information of intangible assets that failed to accomplish certification of property
□Applicable √ Inapplicable
24. Goodwill
□Applicable √ Inapplicable
25. Long-term amortization expense
□Applicable √ Inapplicable
Notes of long-term amortization expense: naught
26. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
√Applicable □Inapplicable
Deferred tax assets and liabilities that already recognized
Unit: RMB Yuan
Item Closing balance Opening balance
Deferred income tax assets:
Provision for assets impairment 912,707.32 912,707.32
92
Formation expenses
Deductible losses
Subtotal 912,707.32 912,707.32
Deferred income tax liabilities:
Estimated value of trading financial instruments,
derivative financial instruments
Fair value changes on available-for-sale financial
71,250,975.00 56,727,375.00
assets that recognized into capital reserves
Subtotal 71,250,975.00 56,727,375.00
List of unrecognized deferred income tax assets: naught
Unit: RMB Yuan
Item Closing balance Opening balance
Deductible temporary
Deductible losses
Total
Deductible losses of unrecognized deferred income tax assets will due in the following years
Unit: RMB Yuan
Year Closing balance Opening balance Remark
Total --
Notes: as for those unable to make full recognize on Balance Sheet Date, only the recognized part and due year shall be filled, and
notes on the remark column.
List of taxable differences and deductible differences items
Unit: RMB Yuan
Temporary differences amount
Item
As at period-end As at period-begin
Taxable differences items
Fair value change on available-for-sale financial
475,006,500.00 378,182,500.00
assets
Subtotal 475,006,500.00 378,182,500.00
Deductible differences item
Assets impairment provision 6,084,715.45 6,084,715.45
Subtotal 6,084,715.45 6,084,715.45
93
(2) Deferred income tax assets and liabilities are listed as the net value after offset
□Applicable √ Inapplicable
27. List of provision for assets impairment
Unit: RMB Yuan
Opening book Increase in current Decrease in current period Closing book
Item
balance period Reversal Written off balance
I. Provision for bad debt 259,655,493.27 4,222,750.31 263,878,243.58
II. Provision for inventory
18,385,624.17 18,385,624.17
falling price
III. Impairment provision of
available-for-sale financial
assets
IV. Impairment provision of
held-to-maturity investment
V. Impairment provision of
1,254,182.50 1,254,182.50
long-term equity investment
VI. Impairment provision of
investment property
VII. Impairment provision of
14,907,753.01 2,853,380.27 12,054,372.74
fixed assets
VIII. Impairment provision of
engineering materials
IX. Impairment provision of
construction in progress
X. Impairment provision of
productive biological assets
Including: mature
productive biological assets
XI. Impairment provision of
oil gas assets
XII. Impairment provision of
intangible assets
XIII. Impairment provision of
goodwill
XIV. Impairment provision of
14,000,000.00 14,000,000.00
entrusted loan
Total 308,203,052.95 4,222,750.31 0.00 2,853,380.27 309,572,422.99
Notes of the list of assets impairment: naught
94
28. Other non-current assets
□Applicable √ Inapplicable
Notes of other non-current assets: naught
29. Short-term loan
(1) Category
Unit: RMB Yuan
Category Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan 20,000,000.00 37,000,000.00
Credit loan 20,000,000.00
Total 40,000,000.00 37,000,000.00
Notes: there was no particular about mature short-term loan unsettled in the period-end.
RMB 20,000,000.00 of subsidiary Changwan on guarantee loan was loan guaranteed by State-own Assets’ Guarantee Co., Ltd. of
Wanzhou District, Chongqing and loan of RMB 20,000,000.00 was credit loan of subsidiary Benniu.
(2) List of unsettled mature short-term loan
□Applicable √ Inapplicable
30. Trading financial liabilities
□Applicable √ Inapplicable
31. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
Trade acceptance
Bank acceptance 314,773,964.00 278,080,000.00
Total 314,773,964.00 278,080,000.00
RMB314,773,964.00 will be due in the next fiscal period.
Notes: naught
95
32. Accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Operating accounts payable 549,714,548.35 489,580,470.91
Construction accounts payable 14,389,657.21 5,467,766.53
Total 564,104,205.56 495,048,237.44
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of the
Company
□Applicable √ Inapplicable
Notes of the accounts payable aging over one year: naught
33. Advance from customers
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Advance from customers 68,616,602.09 64,357,833.51
Total 68,616,602.09 64,357,833.51
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the voting shares of
the Company
□Applicable √ Inapplicable
Notes of significant advance from customers aging over one year: naught
34. Payroll payable
Unit: RMB Yuan
Increase in the reporting Decrease in the reporting
Item Opening book balance Closing book balance
period period
I. Salary, bonus,
39,550,341.74 89,239,914.54 118,273,776.47 10,516,479.81
allowance, subsidy
II. Employee welfare 2,287,889.02 2,287,889.02
III. Social insurance 24,892,773.74 24,892,773.74
Including: 16,991,777.76 16,991,777.76
96
Endowment
insurance
Basic pension
5,356,609.20 5,356,609.20
benefits
Unemployment
1,339,549.40 1,339,549.40
insurance
Work-related injury
669,354.10 669,354.10
insurance
Maternity insurance 535,483.28 535,483.28
IV. Housing fund 6,659,099.00 6,659,099.00
V. Redemption for
terminations of labor 64,486.00 64,486.00
contract
VI. Others 5,739,934.28 2,651,852.52 1,788,982.56 6,602,804.24
Including: labour
union budget and
5,739,934.28 2,651,852.52 1,788,982.56 6,602,804.24
employee
education budget
Total 45,290,276.02 125,796,014.82 153,967,006.79 17,119,284.05
There was no payroll payable in default.
The labor union budget and employee education budget is RMB 6,602,804.24, and the non-monetary benefits are RMB0, as well
as the compensation for terminating the labor contract is RMB0.
The estimated distribution date and amount as well as other arrangements for payroll payable: naught
35. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT -51,330,912.45 -65,558,386.62
Consumption tax
Business tax
Corporate income tax 3,492,349.73 813,089.59
Personal income tax 878,989.93 7,886.75
Urban maintenance and construction tax 860,543.45 851,003.62
Property tax 650,489.12 343,678.07
Education surtax 19,896.34 20,690.75
Comprehensive fees 2,473,603.89 2,225,829.00
Total -42,955,039.99 -61,296,208.84
97
Notes of taxes payable: for the taxable income of branch companies and factories approved to be inter-adjusted by their local tax
authorities, the Company shall specified their calculation procedure.
36. Interest payable
□Applicable √ Inapplicable
37. Dividends payable
Unit: RMB Yuan
Reason for unsettlement over 1
Name of company Closing balance Opening balance
year
Common shareholders payable 6,613,134.69 3,243,179.97 Waiting for withdrawal
Minority shareholders 648,253.86 648,253.86 Waiting for withdrawal
Total 7,261,388.55 3,891,433.83 --
Notes: There was RMB 3,369,954.72 of common shares payable on dividends payable waiting for withdrawal in the reporting period.
38. Other accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Other accounts payable 139,653,791.36 128,410,363.38
Total 139,653,791.36 128,410,363.38
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting shares of
the Company
□Applicable √ Inapplicable
(3) Notes of the other large amount accounts payable aging over 1 year: naught
(4) Notes of other accounts payable with significant amount: mainly of sales rebound and quality claim.
39. Estimated liabilities
□Applicable √ Inapplicable
98
40. Non-current liabilities due within 1 year
(1)
□Applicable √ Inapplicable
(2) Long-term loan due within 1 year
□Applicable √ Inapplicable
(3) Bonds payable due within 1 year
□Applicable √ Inapplicable
(4) Long-term accounts payable due within 1 year
□Applicable √ Inapplicable
41. Other current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Sewage charge 150,000.00 357,704.00
Electric charge 422,855.41 647,193.56
Other 206,108.22 198,239.83
Total 778,963.63 1,203,137.39
Notes: naught
42. Long-term loan
(1) Category
□Applicable √ Inapplicable
(2) The top five long-term loans
□Applicable √ Inapplicable
43. Bonds payable
□Applicable √ Inapplicable
99
44. Long-term payable
(1) The top five long-term payable
□Applicable √ Inapplicable
(2) List of the financing lease payable under the long-term loan
□Applicable √ Inapplicable
45. Specific payable
□Applicable √ Inapplicable
46. Other non-current liabilities
Unit: RMB Yuan
Items Closing book amount Opening book amount
Government subsidies on technological 9,689,900.00 10,087,900.00
projects
Compensation for relocation for land in 11,864,289.02 11,864,289.02
Zoucun （Note）
Deferred income（Note） 13,010,231.05 13,010,231.05
Total 34,564,420.07 34,962,420.07
Notes of other non-current liabilities: government grants on 863 project was paid to partner.
Of which including each government grant pertinent to assets or government grant pertinent to income as well as its closing balance:
naught
47. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Capitalization Closing
Issuing new
balance Bonus shares of public Other Subtotal balance
shares
reserves
Total shares 561,374,326.00 561,374,326.00
48. Treasury stock
□Applicable √ Inapplicable
Notes of treasury stock: naught
100
49. Special reserves
□Applicable √ Inapplicable
Notes of special reserves: naught
50. Capital reserves
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening balance Closing balance
period reporting period
Capital premium (share
153,053,986.32 153,053,986.32
capital premium)
Other capital reserves 341,766,262.44 82,300,400.00 424,066,662.44
Total 494,820,248.76 82,300,400.00 577,120,648.76
Notes of capital reserves: There was an increase of RMB 82,300,400.00 on capital reserves in the reporting period, mainly from the
change amount of Foton Automobile and Ninghu Expressway—held by the parent company recognized by fair value and their net
deferred income tax influence amount.
51. Surplus reserves
Unit: RMB Yuan
Decrease in current
Item Opening balance Increase in current period Closing balance
period
Legal surplus reserves 263,999,764.47 263,999,764.47
Discretional surplus reserves 13,156,857.90 13,156,857.90
Reserve fund
Enterprise development funds
Other
Total 277,156,622.37 277,156,622.37
52. Provision for general risk
□Applicable √ Inapplicable
Notes: naught
101
53. Retained profits
Unit: RMB Yuan
As at 30 Jun. 2012 As at 1 Jan. 2012
Withdrawal or Withdrawal or
Item
Amount distributed Amount distributed
proportion proportion
Opening balance of retained
409,368,310.58 -- 360,595,476.29 --
profits before adjustments
Adjustments of opening
balance of retained profits
-- --
(“+” means add, “-” means
reduce)
Opening balance of retained
409,368,310.58 -- 360,595,476.29 --
profits after adjustments
Add: Net profit attributable
29,802,438.47 -- 52,856,879.07 --
to owners of the Company
Less: Withdrawal of
4,084,044.78 10%
statutory surplus reserves
Withdrawal of discretional
surplus reserves
Withdrawal of provision for
general risk
Dividend of common stock
payable
Dividend of common stock
converted into share capital
Closing retained profits 439,170,749.05 -- 409,368,310.58 --
List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
54. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
102
Item Reporting period Same period of last year
Sales of main business 1,567,714,421.37 1,687,334,145.34
Other operating income 31,765,791.38 15,213,963.90
Cost of sales 1,472,951,393.72 1,563,753,985.22
(2) Main business (Classified by industry)
√Applicable □Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Diesels engines and foundry
1,567,714,421.37 1,443,552,908.36 1,687,334,145.34 1,555,379,656.68
fittings
Total 1,567,714,421.37 1,443,552,908.36 1,687,334,145.34 1,555,379,656.68
(3)Main business (Classified by product)
√Applicable □Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Diesels engines and foundry
1,567,714,421.37 1,443,552,908.36 1,687,334,145.34 1,555,379,656.68
fittings
Total 1,567,714,421.37 1,443,552,908.36 1,687,334,145.34 1,555,379,656.68
(4) Main business (Classified by area)
√Applicable □Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Eastern China 778,764,744.57 717,087,306.63 796,127,526.19 733,868,014.10
Northeastern China 82,503,124.63 75,968,954.47 76,965,756.62 70,946,808.27
Southwestern China 158,542,506.44 145,986,088.50 146,347,977.89 134,903,135.95
Central China 176,067,223.19 162,122,864.11 221,352,012.26 204,041,634.42
Northern China 89,884,109.80 82,765,372.53 105,072,678.80 96,855,686.55
Northwestern China 72,965,341.01 67,186,554.38 55,953,661.55 51,577,920.79
Southern China 119,240,235.58 109,796,520.67 151,010,033.99 139,200,605.57
103
Export 89,747,136.15 82,639,247.07 134,504,498.04 123,985,851.03
Total 1,567,714,421.37 1,443,552,908.36 1,687,334,145.34 1,555,379,656.68
(5) The revenue of sales from the top five customers
Unit: RMB Yuan
Customer Main business revenue Proportion of total business revenue (%)
SHANDONG WUZHENG (GROUP) CO.,
155,076,399.67 9.70
LTD.
CHANGZHOU DONGFENG
AGRICULTURAL MACHINERY GROUP 107,597,634.48 6.73
CO.，LTD
DONGFENG AUTOMOBILE CO., LTD. 87,380,791.64 5.46
LIUZHOU GONGXING
51,453,325.52 3.22
AGRICULTURAL MACHINERY CO.
FOTON LOVOL INTERNATIONAL
44,769,119.54 2.80
HEAVY INDUSTRY CO., LTD
Total 446,277,270.85 27.90
Notes: naught
55. Revenue from the construction contracts
□Applicable √ Inapplicable
Notes of revenue from the construction contracts: naught
56. Business tax and surcharges
Unit: RMB Yuan
Item Reporting period Same period of last year Calculation and payment standard
Consumption tax
Please refer to Note 3. 1 “Main tax type
Business tax 37,500.00
and rate”
Urban maintenance and construction Please refer to Note 3. 1 “Main tax type
74,609.66 199,337.89
tax and rate”
Education surtax Please refer to Note 3. 1 “Main tax type
49,864.77 113,907.36
and rate”
Resources tax
Total 161,974.43 313,245.25 --
104
Notes: naught
57. Gains and losses from changes in fair value
Unit: RMB Yuan
Source Reporting period Same period of last year
Trading financial assets -66,665.37
Including: gains from the changes in fair value of
derivative financial instruments
Trading financial liabilities
Investment property calculated in fair value
Other
Total -66,665.37
Notes: naught
58. Investment income
(1) List of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by
cost method
Long-term equity investment income accounted by
53,526.00
equity method
Investment income arising from disposal of
long-term equity investments
Investment income received from holding of trading
financial assets
Investment income received from holding of
held-to-maturity investments
Investment income received from holding of
8,670,000.00 10,115,000.00
available-for-sale financial assets
Investment income received from disposal of
230,463.19 167,311.20
trading financial assets
Investment income received from holding of
held-to-maturity investments
Investment income received from available-for-sale
financial assets
Other
105
Total 8,953,989.19 10,282,311.20
(2) Long-term equity investment income accounted by cost method
□Applicable √ Inapplicable
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease
year
Changzhou Fuji Changchai Robin
53,526.00 Profits occurred in the reporting period
Diesel Engine Co., Ltd.
Total 53,526.00 --
59. Impairment losses
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Bad debts losses 4,222,750.31 428,540.71
II. Inventory falling price losses
III. Impairment losses of available-for-sale financial
assets
IV. Impairment losses of held-to-maturity of investment
V. Impairment losses of long-term equity investment
VI. Impairment losses of investment property
VII. Impairment losses of fixed assets
VIII. Impairment losses of engineering materials
IX. Impairment loss of construction in progress
X. Impairment losses of productive biological assets
XI. Impairment losses of oil and gas assets
XII. Impairment losses of intangible assets
XIII. Impairment losses of goodwill
XIV. Other
Total 4,222,750.31 428,540.71
106
60. Non-operating gains
(1)
Unit: RMB Yuan
Item Reporting period Same period of last year
Total gains from disposal of non-current assets 3,055,944.89 157,337.81
Including：Gains from disposal of fixed assets 3,055,944.89 157,331.81
Gains from disposal of intangible assets
Gains from debt reconstruction
Gains from non-monetary assets exchange
Acceptance of donations
Government grants 1,600,000.00 5,922,000.00
Disposal of current assets income 2,208,378.00 2,724,753.55
Other 245,617.95 198,496.97
Total 7,109,940.84 9,002,588.33
(2) List of government grants
Unit: RMB Yuan
Item Reporting period Same period of last year Note
Special funds for the development
1,600,000.00 Government grants pertinent to income
of five main industries
Other awards and subsidies 5,922,000.00 Government grants pertinent to income
Total 1,600,000.00 5,922,000.00 --
Notes: no
61. Non-operating expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Loss on disposal of non-current assets 601,158.15 679.50
Including: Loss on disposal of fixed assets 601,158.15 679.50
Loss on disposal of intangible assets
Loss on debt reconstruction
Loss on exchange of non-monetary assets
External donation
107
Flood control and security funds 1,585,294.37 1,683,572.06
Loss on disposal of current assets 11,023.45 670,195.29
Other 581,742.83 21,583.74
Total 2,779,218.80 2,376,030.59
Notes: naught
62. Income tax expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Current income tax expense accounted by tax and relevant
5,506,929.91 9,631,166.60
regulations
Adjustment of income tax
Total 5,506,929.91 9,631,166.60
63. Calculation process of basic EPS and diluted EPS
The calculation process of basic EPS of the Company from Jan. to Jun. in 2012 is specified in the following table:
Item Amount
Calculation of basic EPS and diluted EPS
(Ⅰ) Numerator
Net profit after tax 30,021,528.08
Adjustment: influence of preference share dividends and other tools
Gains/losses attributable to ordinary share holders of parent company in
29,802,438.47
the calculation of basic EPS
Adjustment: dividends and interest related to dilution potential ordinary
shares
Gain/loss changes caused by conversion of dilution potential ordinary
shares
Gains/losses attributable to ordinary share holders of parent company in
29,802,438.47
the calculation of diluted EPS
(Ⅱ) Denominator
Weighted average number of common shares issued in the reporting
561,374,326
period in the calculation of basic EPS
Add: weighted average number of common shares converted from all
108
delusion potential common shares
Weighted average number of common shares issued in the reporting
561,374,326
period in the calculation of diluted EPS
(Ⅲ) EPS
Basic EPS
Net profit attributable to common share holders of the Company 0.05
Net profit attributable to common share holders of the Company after 0.05
deducting non-recurring gains/losses
Diluted EPS
Net profit attributable to common share holders of the Company 0.05
Net profit attributable to common share holders of the Company after 0.05
deducting non-recurring gains/losses
64. Other comprehensive income
Unit: RMB Yuan
Item Reporting period Same period of last year
1. Profits/(losses) from available-for-sale financial assets 96,824,000.00 -250,046,500.00
Less: Effects on income tax generating from available-for-sale
14,523,600.00 -37,506,975.00
financial assets
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
Subtotal 82,300,400.00 -212,539,525.00
2. Interests in the investee entities’ other comprehensive
income as per equity method
Less: Effects on income tax generating from the interests in the
investee entities’ other comprehensive income as per equity
method
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
Subtotal
3. Profits/(losses) from cash flow hedging instrument
Less: Effects on income tax generating from cash flow hedging
instrument
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
109
The adjustment value that is the converted initial recognition
amount of arbitrage project
Subtotal
4. Converted amount of foreign currency financial statements -1,481.92
Less: Net value of disposal of oversea operations that
recognized into current profit and loss
Subtotal -1,481.92
5. Other
Less: Effects on income tax generating from the others that
included into other comprehensive income
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior
period
Subtotal
Total 82,298,918.08 -212,539,525.00
Notes: the gain/loss from financial assets available for sale in the reporting period came from the income from the fair value changes
on available-for-sale—shares of Foton Automobile and Ninghu Expressway—held by the parent company.
65. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Amount
Subsidies and grants 1,600,000.00
Interest income 7,259,870.25
Cash received from other activities 7,652,538.03
Total 16,512,408.28
Notes: naught
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Amount
Various kinds of office expenses 4,447,716.17
Expense on transportation and repair 11,982,886.54
Expenses on promotion and guarantee for repair, replacement and refund 19,657,987.17
Cash paid for other activities 3,398,340.37
110
Total 39,486,930.25
Notes: naught
(3) Other cash received relevant to investment activities
Unit: RMB Yuan
Item Amount
Total
Notes: naught
(4) Other cash paid relevant to investment activities
Unit: RMB Yuan
Item Amount
Xuzhou East China Casting General Factory 6,000,000.00
Huachi Casting Factory 4,000,000.00
Total 10,000,000.00
Notes: The above item was money on call to Xuzhou East China Casting General Factory in the reporting period.
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
Item Amount
Total
Notes: naught
(6) Other cash paid relevant to financing activities
Unit: RMB Yuan
Item Amount
Total
Notes: naught
111
66. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
Supplementary Amount of this period Amount of last period
1. Reconciliation of net profit to net cash flows generated
-- --
from operations：
Net profit 30,021,528.08 37,926,983.39
Add: Provision for assets impairments 4,222,750.31
Depreciation of fixed assets, oil-gas assets and productive
26,442,971.71
biological assets 28,962,939.75
Amortization of intangible assets 1,131,733.20 1,178,945.43
Amortization of long-term deferred expense
Losses/gains on disposal of property, intangible asset and
-140,834.57
other long-term assets (gains: negative) -2,454,786.74
Losses/gains on scrapped of fixed assets (gains:
negative)
Losses/gains from variation of fair value (gains: negative) 66,665.37
Financial cost (income: negative) 1,018,671.35 1,514,137.84
Investment loss (gains: negative) -8,900,463.19 -10,115,000.00
Decrease in deferred tax assets (increase: negative)
Increase in deferred tax liabilities (decrease: negative) 14,523,600.00 -37,506,975.00
Decrease in inventory (increase: negative) 83,599,474.53 59,492,230.01
Decrease in accounts receivable from operating activities
-85,978,757.50
(increase: negative) -54,264,989.36
Increase in accounts payable from operating activities
-41,365,057.00
(decrease: negative) 110,008,700.70
Others
Net cash flows generated from operating activities 207,869,158.63 -48,652,001.52
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
Debt converted into capital
Convertible company bonds due within 1 year
Financing leased fixed assets
3. Change of cash and cash equivalent: -- --
Closing balance of Cash 559,067,112.03 686,687,180.70
Less: opening balance of cash 470,293,043.20 763,106,649.01
112
Plus: closing balance of cash equivalent
Less: opening balance of cash equivalents
The net increase in cash and cash equivalents 88,774,068.83 -76,419,468.31
(2)Relevant information of acquisition or disposal of subsidiaries and other operation entities in the
reporting period
□ Applicable √ Inapplicable
(3)Composition of cash and cash equivalents
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Cash 559,067,112.03 470,293,043.20
Including: Cash on hand 563,489.03 1,512,744.56
Bank deposit on demand 558,503,623.00 468,780,298.64
Other monetary funds on demand
Central Bank deposit on demand
Due from banks
Call loan to banks
II. Cash equivalents
Including: bond investments due in three months
III. Closing balance of cash and cash equivalents 559,067,112.03 470,293,043.20
Notes: Naught
67. Notes to statement of changes in owners’ equity
□ Applicable √ Inapplicable
(VIII) Accounting treatment of assets securitization business
1. Notes of main trade arrangement and its accounting treatment of assets securitization business as well as
articles of bankruptcy remote
□ Applicable √ Inapplicable
2. Main information about the special purpose entities in which the Company has no control right but bears
□ Applicable √ Inapplicable
(IX) Related Parties and Related-party Transactions
1. Information of the parent company of the Company
Unit: RMB 0’000
Parent Relationsh Business Registered Legal Business Registered The parent The parent The Organizati
company ip Type place Representa nature Capital company's company's ultimate on Code
113
tive shareholdi voting controlling
ng (%) right (%) party of
the
Company
State-owne
d Assets
Supervisio
n and
Administra
Controllin
tion Governme
g Changzho 01411025-
Commissi nt 30.02 30.02
shareholde u 1
on of authority
r
Changzho
u
Municipal
Governme
nt
Particular about the parent company of the Company: The State-owned Assets Supervision and Administration
Commission of Changzhou Municipal Government is the actual controller of the Company, which held 30.02%
equities of the Company (state-owned equities) as at 30 Jun. 2012.
2. Information of subsidiaries of the Company
Unit: RMB 0’000
Percentage
Legal Percentage
Business Registered Business Registered of Organizatio
Full name Type representati of voting
type place nature capital Shareholdin n code
ve right (%)
g (%)
Changchai Changchai
Wanzhou Company Wanzhou
Controlled Chongqing
Diesel with limited Yin Lihou Diesel 3,500 60 60 20793370-5
subsidiary City
Engine Co., liability Engine Co.,
Ltd. Ltd.
Changzhou Changzhou
Changchai Changchai
Benniu Company Benniu
Controlled Changzhou Cao
Diesel with limited Diesel 3,378.64 75 75 25083232-8
subsidiary City Weiping
Engine liability Engine
Fittings Co., Fittings Co.,
Ltd. Ltd.
Changzhou Wholly-ow Company Changzhou Shi Changzhou
3000 100 100 55027547-1
Housheng ned with limited City Jianchun Housheng
114
Investment subsidiary liability Investment
Co., Ltd. Co., Ltd.
Chansun Wholly-ow Company Chansun
Shi USD
Internationa ned with limited Singapore Internationa 100 100
Jianchun 200,000
l (Pte.) Ltd. subsidiary liability l (Pte.) Ltd.
115
3. Information of joint ventures and associated enterprises
Unit: RMB 0’000
Total sales
Percentage Net profit in
Legal Percentage Total Total Total of revenue
Name of Business Registered Business Registered of the Relationshi Organizatio
representati of voting closing closing closing net in the
investee type address nature capital shareholdin reporting p n code
ve rights (%) assets liabilities assets reporting
g (%) period
period
I. Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- --
ventures
II.
Associated -- -- -- -- -- -- -- -- -- -- -- -- -- --
enterprises
Changzhou
Fuji
Changchai Company
Shijing USD 4.5 Associated
Robin with limited Changzhou Industry 33 33 8241.09 2609.83 5631.26 9316.60 16.22 71497547-5
Qijie million enterprise
Diesel liability
Engine Co.,
Ltd.
Beijing
Tsinghua Company
Chen RMB 10 Associated
Investment with limited Beijing Service 25 25 218.77 203.49 15.28 700233059
Zhangwu million enterprise
Managemen liability
t Co., Ltd.
116
4. Information of other related parties of the Company
□ Applicable √ Inapplicable
Notes: Naught
5. Related-party transactions
(1) Purchase of goods and acceptance of service
□ Applicable √ Inapplicable
(2)Information of related party trust/contract
□ Applicable √ Inapplicable
(3)Information of related-party lease
□ Applicable √ Inapplicable
(4)Information of related-party guarantee
□ Applicable √ Inapplicable
(5)Related-party call loan
□ Applicable √ Inapplicable
(6)Information about assets transfer, debt reorganization of related parties
□ Applicable √ Inapplicable
6. Amounts due from/to related parties
Applicable √ Inapplicable
(X) Share-based Payment
Applicable √ Inapplicable
(XI) Contingency
117
1. Contingent liabilities and its financial effect arising from unsettled litigation or arbitration
Basic Amount involved
Trial result and Execution of the Disclosure date
Type of the information in the Progress of the Serial No. of the
Party with joint influence of the judge of the of the relevant
Complainant Respondent lawsuit/arbitratio about the lawsuit/arbitratio lawsuit/arbitratio relevant interim
responsibility lawsuit/arbitratio lawsuit/arbitratio interim
n lawsuit/arbitratio n (RMB Ten n announcement
n n announcement
n thousand)
Changchai In the process of
Shandong Hongli
Company, 1436 liquidation and
Group Co., Ltd.
Limited bankruptcy
Changzhou 31 Dec. 2011 2011-015
Changchai Changchai In the process of
13 Apr. 2012 2012-003
Company, Benniu Diesel retrial, with no
Limited Engine Fittings judge yet 5 May 2012 2012-008
Co., Ltd
Details of the significant lawsuits and arbitrations:
1. About the lawsuit case of Shandong Hongli Group Co., Ltd., the accused company owed accumulatively RMB 14.36 million to the Company. The Company sued
to Changzhou Intermediate People’s Court in 2001 and sued for compulsory execution in April, 2002. Currently, the defendant has started the bankruptcy procedure.
2. Changchai Benniu Diesel Engine Fittings Co., Ltd. (Changchai Benniu) is the controlled subsidiary of the Company with a register capital of RMB 33,786,400,
of which the Company invested RMB 25,339,800, accounting for 75% of the total register capital, while the natural person of Qiang Jinlong invested RMB
8,446,600, accounting for 25% of the total register capital. In accordance with the provisions of Articles of Association of the Company, the term of operation of
Changchai Benniu Diesel Engine Fittings Co., Ltd. was from 17 Jun. 1996 to 16 Jun. 2011.
Changchai Benniu Diesel Engine Fittings Co., Ltd. convened the First Special Shareholders’ General Meeting for 2011 on 19 Jul. 2011, at which reviewed the
Proposal on Extending the Term of Operation and Revising the Articles of Association for Changchai Benniu Diesel Engine Fittings Co., Ltd., making a Resolution
on Extending the Term of Operation from 17 Jun. 2011 to 16 Jun. 2026 for Changchai Benniu Diesel Engine Fittings Co., Ltd.. The Company believes that the
resolution is effective, which has a restraint on the shareholders. However, the third party of Qiang Jinlong always denies the effectiveness of the resolution made at
118
the session. Therefore, the Company sued to Changzhou Wujin District People’s Court on 28 Dec. 2011, appealing the court to confirm the effectiveness and legality
of the resolution made at the First Special Shareholders’ General Meeting for 2011, extending the term of operation to 16 Jun. 2026 for Changchai Benniu Diesel
Engine Fittings Co., Ltd..
On 9 Apr. 2012, Changzhou Wujin District People’s Court issued a Civil Judgment ([2012] WSC Zi No. 25), deciding that it was in line with relevant laws and
regulation for the appeal of the Company on confirming the effectiveness and legality of the resolution made at the First Special Shareholders’ General Meeting for
2011 convened by Changchai Benniu Diesel Engine Fittings Co., Ltd. on 19 Jul. 2011, thus the court supported it. And it was legal and effective for the resolution
made at the shareholders’ general meeting, which was about “the original Article 4 of the Articles of Association stipulated the term of joint operation with
shareholders was from 17 Jun. 1996 to 16 Jun. 2011, and now extending the term for 15 years, i.e. from 17 Jun. 2011 to 16 Jun. 2026”.
Changzhou Wujin Administration for Industry & Commerce issued the Business License for Enterprise of Changchai Benniu Diesel Engine Fittings Co., Ltd. on 20
Apr. 2012, with the term of operation from 17 Jun. 1996 to 16 Jun. 2026.
Qiang Jinlong refused to accept the court decision as final. He appealed to Changzhou Intermediary People’s Court, which opened a court session on 27 Jun. 2012 to
try this case. No verdict has been reached so far.
119
2. Contingent liabilities and its financial effect arising from loan guarantee offered to other
companies
Applicable √ Inapplicable
(XII) Commitments
1. Significant commitments
Applicable √ Inapplicable
2. Fulfillment of previous commitments
Applicable √ Inapplicable
(XIII)Events after the Balance Sheet Date
Applicable √ Inapplicable
(XIV)Notes of other significant events
1. Exchange of non-monetary assets
Naught
2. Debt reorganization
Naught
3. Business combination
Naught
4. Lease
Naught
5. Closing financial instruments that externally issued and convertible into shares
Naught
6. Main content and significant changes of annuity plan
Naught
7. Other significant events
Naught
(XV) Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Provision for bad debts Balance Provision for bad debts
Category Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Accounts receivable with 62,968,988.61 9.79 44,205,382.69 70.20 66,878,836.94 12.02 45,845,217.26 68.55
120
significant single amount
and individually
withdrawn bad debt
provision
Aging groups 579,760,662.19 90.14 188,103,335.66 32.44 489,715,505.50 87.98 184,955,597.87 37.77
Subtotal of the groups 579,760,662.19 90.14 188,103,335.66 32.44 489,715,505.50 87.98 184,955,597.87 37.77
Accounts receivable with
insignificant single
amount but individually 460,313.32 0.07 460,313.32 100
withdrawn bad debt
provision
Total 643,189,964.12 100 232,769,031.67 36.14 556,594,342.44 100.00 230,800,815.13 41.47
Please fill the name of groups. Proportion in the book value was calculated by dividing the total amount of
accounts receivable from the closing amount of such accounts receivable, while the proportion of
provision for bad debts was calculated by dividing the closing amount of accounts receivable from the
withdrawal amount of such accounts receivable at period-end.
Notes to category of accounts receivable:
Accounts receivable with significant single amount and individually withdrawn bad debt provision at
period-end
√ Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawal
Content of accounts receivable Book balance Bad debts provision Withdrawal reason
proportion
ANHUI FEICAI VEHICLE CO.,LTD. 6,215,662.64 6,186,873.74 99.54 Difficult to recover
HEILONGJIANG PROVINCE COAST
2,584,805.83 2,584,805.83 100.00 Difficult to recover
IMPORT & EXPORT CORP,LTD.
ZHEJIANG SANLIAN
AGRICULTURAL MACHINERY CO., 1,902,326.58 100.00 Difficult to recover
LTD. 1,902,326.58
FUPING WEIPING AGRICULTURAL
5,429,151.00 100.00 Difficult to recover
MACHINERY CO., LTD. 5,429,151.00
Part of accounts
CHANGCHAI WANZHOU DIESEL
46,837,042.56 28,102,225.54 60.00 receivable were
ENGINE CO., LTD.
difficult to recover
Total 62,968,988.61 44,205,382.69 70.20 --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Aging Closing balance Opening balance
121
Book balance Book balance
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1 year 394,697,641.98 68.08 10,634,921.62 303,484,806.74 61.97 6,069,696.14
Subtotal for
those aging 394,697,641.98 68.08 10,634,921.62 303,484,806.74 61.97 6,069,696.14
within 1 year
1-2 years 2,005,739.74 0.35 101,763.49 1,745,307.45 0.36 87,265.37
2-3 years 6,102,671.39 1.05 921,099.91 6,071,399.89 1.24 910,709.98
Over 3 years 176,954,609.08 30.52 176,445,550.65 178,413,991.42 36.43 177,887,926.38
3-4 years 301,098.36 0.05 91,830.36 248,284.39 0.05 74,485.32
4-5 years 786,159.96 0.14 486,369.53 880,664.92 0.18 528,398.95
Over 5 years 175,867,350.76 30.33 175,867,350.76 177,285,042.11 36.20 177,285,042.11
Total 579,760,662.19 100.00 188,103,335.67 489,715,505.50 100.00 184,955,597.87
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□Applicable √ Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
□Applicable √ Inapplicable
Accounts receivable with insignificant single amount but individually withdrawn bad debt provision at
period-end:
□Applicable √ Inapplicable
Withdrawal
Content of accounts receivable Book balance Bad debts provision Withdrawal reason
proportion
MENGCHENG XINGNONG
AGRICULTURAL MACHINERY CO., 233,100.00 233,100.00 100.00 Difficult to recover
LTD.
HENGYANG HENGFA TRACTOR
227,213.32 227,213.32 100.00 Difficult to recover
MANUFACTURING CO., LTD.
Total 460,313.32 460,313.32 100
(2)Information of accounts receivable reversed or recovered in the reporting period
□Applicable √ Inapplicable
The withdrawal of bad debt provision of accounts receivable with significant single amount or
insignificant single amount but individually made impairment test at the end of reporting period:
122
Applicable √ Inapplicable
Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by
credit risks characteristics:
□Applicable √ Inapplicable
(3)Information of accounts receivable that written off in the reporting period
□Applicable √ Inapplicable
(4)Information of shareholders with more than 5% (including 5%) of the voting shares of the
Company in accounts receivable in reporting period
□Applicable √ Inapplicable
(5)Nature or content of other accounts receivable with significant amount
□Applicable √ Inapplicable
(6) Top five accounts receivable
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
CHANGZHOU
DONGFENG
AGRICULTURAL Customer 57,976,571.41 Within 1 year 9.01
MACHINERY GROUP
CO.，LTD
SHANDONG WUZHENG
Customer 52,833,531.80 Within 1 year 8.21
(GROUP) CO., LTD.
CHANGCHAI WANZHOU
Within 4 years and
DIESEL ENGINE CO., Controlled subsidiary 46,837,042.56 7.28
over 5 years
LTD.
DONGFENG
Customer 43,709,397.96 Within 1 year 6.80
AUTOMOBILE CO., LTD.
SHENYANG JINBEI
VEHICLE
Customer 24,776,779.12 Within 1 year 3.85
MANUFACTURING CO.,
LTD.
Total -- 226,133,322.85 -- 35.16
123
(7) Accounts receivable due from related parties
Unit: RMB Yuan
Name of company Relationship Amount Proportion (%)
CHANGCHAI WANZHOU
Controlled subsidiary 46,837,042.56 7.28
DIESEL ENGINE CO., LTD.
Total -- 46,837,042.56 7.28
RMB0.00 was transferred from the accounts receivable not meeting the conditions of termination
recognition.
(9) If securitization is carried out on accounts receivable as the underlying asset, please brief on the
arrangement of relevant transactions.
□Applicable √ Inapplicable
2. Other accounts receivable
(1) Other accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad
Book balance Provision for bad debts Book balance
debts
Category
Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
(%) (%) (%) (%)
Other accounts receivable
with significant single
amount and individually 4,504,630.68 4.92 4,356,216.87 96.71 4,504,630.68 10.91 4,356,216.87 96.71
withdrawn bad debt
provision
Other accounts receivable for which bad debt provisions are made on the group basis
Aging groups 85,144,692.13 92.89 26,660,454.23 31.31 34,767,149.41 84.22 25,755,114.80 74.08
Subtotal of the groups 85,144,692.13 92.89 26,660,454.23 31.31 34,767,149.41 84.22 25,755,114.80 74.08
Other accounts receivable
with insignificant single
amount but individually 2,010,948.16 2.19 1,969,759.64 97.95 2,010,948.16 4.87 1,969,759.64 97.95
withdrawn bad debt
provision
Total 91,660,270.97 100.0 32,986,430.74 35.99 41,282,728.25 100.0 32,081,091.31 71.34-
124
0 0- -
Notes of category:
Other accounts receivable with significant single amount and individually withdrawn bad debt provision at
period-end:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Content of other accounts
Book balance Bad debts provision Withdrawal proportion Withdrawal reason
receivable
Changchai Group
Import & Export Co., 2,853,188.02 2,853,188.02 100.00 Difficult to recover
Ltd.
Other customers 1,651,442.66 1,503,028.85 91.01 Difficult to recover
Total 4,504,630.68 4,356,216.87 --
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Aging
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Within 1 year
Including: -- -- -- -- -- --
Within 1 year 58,101,898.54 68.24 1,813,216.74 7,120,144.87 20.48 142,402.89
Subtotal for
those aging 58,101,898.54 68.24 1,813,216.74 7,120,144.87 20.48 142,402.89
within 1 year
1-2 years 1,259,469.31 1.48 63,496.03 1,019,076.16 2.93 50,953.81
2-3 years 1,096,349.75 1.29 167,309.15 1,186,903.70 3.41 178,035.56
Over 3 years 24,686,974.53 28.99 24,616,432.31 25,441,024.68 73.18 25,383,722.54
3-4 years 93,734.94 0.11 28,543.61 80,530.00 0.23 24,159.00
4-5 years 13,875.28 0.02 8,524.39 2,327.86 0.01 1,396.72
Over 5 years 24,579,364.31 28.87 24,579,364.31 25,358,166.82 72.94 25,358,166.82
Total 85,144,692.13 100.00 26,660,454.23 34,767,149.41 100 25,755,114.80
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□Applicable √ Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
125
□Applicable √ Inapplicable
Other accounts receivable with insignificant single amount but individually withdrawn bad debt provision
at period-end:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Content Book balance Provision for bad debts Withdrawal proportion Reason
Jie Hua mechanical and
electrical limited 377,033.06 377,033.06 100
company of Anhui
Wuxi tank factory 205,095.61 205,095.61 100
Of small amount that
Other 1,428,819.49 1,387,630.97 97.12
difficult to recover
Total 2,010,948.16 1,969,759.64 97.95 --
(2)Information of other accounts receivable reversed or recovered in the reporting period
□Applicable √ Inapplicable
The withdrawal of bad debt provision of other accounts receivable with significant single amount or
insignificant single amount but individually made impairment test at the end of reporting period:
□Applicable √ Inapplicable
Notes to other accounts receivable with insignificant single amount but large risks of groups after grouping
by credit risks characteristics:
□Applicable √ Inapplicable
(3)Information of the write-off other accounts receivable
□Applicable √ Inapplicable
(4) The other accounts receivable due from shareholders with more than 5% (including 5%) of the
voting shares of the Company in the reporting period
□Applicable √ Inapplicable
(5)Nature or content of other accounts receivable with significant amount
□Applicable √ Inapplicable
(6) Top five other accounts receivable
Unit: RMB Yuan
Name of company Relationship Amount Term Proportion (%)
Changchai Benniu Diesel Controlled subsidiary 50,000,000.00 Within 1 year 54.55
126
Engine Fittings Co., Ltd
Changzhou Vehicles Co.,
Customer 3,879,038.74 Over 5 years 4.23
Ltd.
Changzhou Compressor
Customer 2,940,000.00 Over 5 years 3.21
Plant
Changchai Group
Import & Export Co., Customer 2,853,188.02 Over 5 years 3.11
Ltd.
Changzhou xinsheng
Property Management Customer 2,040,136.61 Over 5 years 2.23
Limited
Total -- 61,712,363.37 67.33
(7) Other account receivable due from related parties
Unit: RMB Yuan
Name of company Relationship Amount Proportion (%)
Changchai Benniu Diesel
Controlled subsidiary 50,000,000.00 54.55
Engine Fittings Co., Ltd
Total --
(8) RMB 0 was transferred from the other accounts receivable not meeting the conditions of
termination recognition.
(9) If securitization is carried out on the other accounts receivable as the underlying asset, please
brief on the arrangement of relevant transactions.
□Applicable √ Inapplicable
3. Long-term equity investments
Unit: RMB Yuan
Explanati
ons on Withdraw
difference al amount
s between of Cash
Sharehold Voting Provision
Accounti Initial sharehold impairme bonus in
Opening Increase/ Closing ing right for
The investee ng investmen ing nt the
balance decrease balance Proportio Proportio impairme
method t cost proportio provision reporting
n n nt loss
n and in the period
voting reporting
right period
proportio
127
n
Changchai
Wanzhou Cost 21,000,00 21,000,00 21,000,00
60 60
Diesel Engine method 0.00 0.00 0.00
Co., Ltd
Changchai
Benniu Diesel Cost 25,339,80 25,339,80 25,339,80
75 75
Engine Fittings method 0.00 0.00 0.00
Co., Ltd
Changzhou
Housheng Cost 30,000,00 30,000,00 30,000,00
100 100
Investment Co., method 0.00 0.00 0.00
Ltd.
Chansun
Cost 1,278,440 1,278,440 1,278,440
International 100 100
method .00 .00 .00
(Pte.) Ltd.
Changzhou Fuji
Changchai Equity 12,294,54 18,563,41 18,616,94
53,526.00 33 33
Robin Gasoline method 6.00 4.34 0.34
Engine Co., Ltd.
Beijing
Tsinghua
Industrial Equity 2,500,000
25 25 44,182.50
Investment method .00
Management
Co., Ltd.
Cost 38,000,00 38,000,00 38,000,00
Jiangsu Bank
method 0.00 0.00 0.00
Cost 410,000.0 410,000.0
Others
method 0 0
130,822,7 134,181,6 134,235,1 454,182.5
Total 53,526.00
86.00 54.34 80.34 0
Notes: Naught
4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item Reporting period Same period of last year
Main business revenue 1,584,511,791.72 1,683,572,061.75
Other business revenue 22,548,367.02 15,213,963.90
Cost of sales 1,496,934,202.57 1,576,529,249.38
128
Total
(2)Main business (Classified by industry)
√ Applicable □ Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Industry
Revenue of sales Cots of sales Revenue of sales Cots of sales
Diesels engines and foundry
1,584,511,791.72 1,478,749,466.30 1,683,572,061.75 1,568,154,920.84
fittings
Total 1,584,511,791.72 1,478,749,466.30 1,683,572,061.75 1,568,154,920.84
(3) Main business (Classified by product)
√ Applicable □ Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Product
Revenue of sales Cots of sales Revenue of sales Cots of sales
Diesels engines and foundry
1,584,511,791.72 1,478,749,466.30 1,683,572,061.75 1,568,154,920.84
fittings
Total 1,584,511,791.72 1,478,749,466.30 1,683,572,061.75 1,568,154,920.84
(4) Main business (Classified by area)
√ Applicable □ Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Area
Revenue of sales Cots of sales Revenue of sales Cots of sales
East China 778,764,744.58 726,784,083.54 796,127,526.18 741,549,070.67
Northwest China 82,503,124.63 76,996,240.83 76,965,756.62 71,689,375.65
Western China 175,339,876.79 163,636,364.58 142,585,894.30 132,810,930.32
Central China 176,067,223.19 164,315,162.36 221,352,012.26 206,177,243.70
North China 89,884,109.80 83,884,563.11 105,072,678.80 97,869,430.16
Northwest China 72,965,341.01 68,095,081.17 55,953,661.55 52,117,763.00
South China 119,240,235.58 111,281,238.58 151,010,033.99 140,657,553.83
Overseas 89,747,136.15 83,756,732.12 134,504,498.04 125,283,553.51
Total 1,584,511,791.72 1,478,749,466.30 1,683,572,061.75 1,568,154,920.84
(5) Revenue of sales from the top five customers
Unit: RMB Yuan
Proportion of
Customers Total revenue of sales
total revenue of
129
sales (%)
SHANDONG WUZHENG (GROUP) CO., LTD. 155,076,399.67 9.65
CHANGZHOU DONGFENG AGRICULTURAL MACHINERY GROUP
107,597,634.48 6.70
CO.，LTD
DONGFENG AUTOMOBILE CO., LTD. 87,380,791.64 5.44
LIUZHOU GONGXING AGRICULTURAL MACHINERY CO., LTD. 51,453,325.52 3.20
FOTON LOVOL INTERNATIONAL HEAVY INDUSTRY CO., LTD. 44,769,119.54 2.79
Total 446,277,270.85 27.78
Notes: Naught
5. Investment income
(1)List of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by cost
method
Long-term equity investment income accounted by equity
53,526.00
method
Investment income arising from disposal of long-term equity
investments
Investment income received from holding of trading financial
assets
Investment income received from holding of held-to-maturity
investments
Investment income received from holding of
8,670,000.00 10,115,000.00
available-for-sale financial assets
Investment income received from disposal of trading
financial assets
Investment income received from holding of held-to-maturity
investments
Investment income received from available-for-sale financial
assets
Other
Total 8,723,526.00 10,115,000.00
(2)Long-term equity investment income accounted by cost method
□Applicable √ Inapplicable
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Name of investee Reporting period Same period of last Reason for increase/decrease YoY
130
year
Changzhou Fuji Changchai Robin Gasoline
53,526.00 Profits gained in the reporting period
Engine Co., Ltd.
Total 53,526.00 --
6. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
Supplemental information Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated from
-- --
operations：
Net profit 27,197,187.46 34,656,754.91
Add: Provision for assets impairments 2,873,555.97
Depreciation of fixed assets, oil and gas assets and productive
23,351,213.10
biological assets 25,549,673.21
Amortization of intangible assets 1,103,467.86 1,178,945.43
Amortization of long-term deferred expense
Losses/gains on disposal of property, intangible asset and other
-156,658.31
long-term assets (gains: negative) -2,486,257.01
Losses/gains on scrapped of fixed assets (gains: negative)
Losses/gains from variation of fair value (gains: negative)
Financial cost (income: negative) 398,046.85 1,339,506.77
Investment loss (gains: negative) -8,723,526.00 -10,115,000.00
Decrease in deferred tax assets (increase: negative)
Increase in deferred tax liabilities (decrease: negative) 14,523,600.00 -37,506,975.00
Decrease in inventory (increase: negative) 85,719,767.23 80,806,096.19
Decrease in accounts receivable from operating activities (increase:
-90,425,683.45
negative) -40,478,299.24
Increase in accounts payable from operating activities (decrease:
-56,510,856.76
negative) 78,892,368.22
Others
Net cash flows generated from operating activities 184,569,584.55 -53,382,657.12
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
Debt converted into capital
Convertible company bonds due within 1 year
Financing leased fixed assets
3. Change of cash and cash equivalent: -- --
131
Closing balance of cash 479,861,904.51 652,410,923.04
Less: opening balance of cash 440,239,150.22 727,580,790.13
Plus: closing balance of cash equivalent
Less: opening balance of cash equivalents
The net increase in cash and cash equivalents 39,622,754.29 -75,169,867.09
7. Information of assets and liabilities recognized by evaluation value from the counter purchase
□Applicable √ Inapplicable
(XVI)Supplemental information
1. Return on equity and earnings per share
Unit: RMB Yuan
The weighted average ROE EPS
Profit in the reporting period
(%) Basic EPS Diluted EPS
Net profit attributable to the Company's
1.66 0.05 0.05
common stock shareholders
Net profit attributable to shareholders of the
Company's common stock after deducting 1.41 0.05 0.05
non-recurring gains and losses
2. Particulars on the abnormal conditions of main items in the financial statements of the Company
and relevant reasons
（1）Other accounts receivable
Amount at the period-end increased RMB 11,026,900 over the period-begin, with an increase of 99.68%,
mainly because the Company’s subsidiary—Changzhou Housheng Investment Co., Ltd. provided
temporary loan to its supplier of Xuzhou East China Casting General Factory.
(2) Payroll payable
Amount at the period-end decreased RMB 28,171,000 over the period-begin, with a decrease of 62.2%,
mainly because the salaries and bonus withdrawn in last period have been largely paid in the reporting
period.
(3) Dividends payable
Amount at the period-end increased RMB 3,361,000 over the period-begin, with an increase of 86.6%,
mainly because part of dividends distributed in the reporting period have not been withdrawn.
(4) Other current liabilities
Amount at the period-end decreased RMB 424,200 over the period-begin, with a decrease of 35.26%,
mainly because the power charges and sewage charges, etc. decreased.
(5) Asset impairment loss
132
Amount at the period-end increased RMB 379,420,000 over the period-begin, with an increase of 885.38%,
Mainly for the provision for bad debts.
(6)Income tax expenses
Amount at the period-end decreased RMB 4,124,200 over the period-begin, with a decrease of 42.82%,
mainly because profits for the period decreased over that of same period of last year.
IX. Documents Available for Reference
Documents Available for Reference
1. Text of 2012 Semi-Annual Report carrying the signature of Chairman of the Board;
2. Accounting statements carrying the signatures and seals of the person-in-charge of the
Company, the person-in-charge of accounting and the person-in-charge of the accounting agency;
3. Originals of all the Company’s documents and public notices ever disclosed on Securities Times
and Ta Kung Pao designated by CSRC in the reporting period;
4. Articles of Association of the Company.
Chairman of the Board: Xue Guojun
Date for submission approved by the Board of Directors: 22 August 2012
133
