2013 Semi-annual Report of Changchai Company, Limited
CHANGCHAI COMPANY, LIMITED
2013 Semi-annual Report
16 August 2013
1
2013 Semi-annual Report of Changchai Company, Limited
I. Important Reminders, Contents & Explanation
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Changchai Company, Limited (hereinafter referred to as “the Company”)
warrant that this report is factual, accurate and complete without any false record, misleading
statement or material omission. And they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Mr. Xue Guojun, company principal, Mr. He Jianguang, chief of the accounting work, and Mr. Jiang
He, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Report
enclosed in this report is factual, accurate and complete.
English Translation for Reference Only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
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2013 Semi-annual Report of Changchai Company, Limited
Contents
I. Important Reminders, Contents & Explanation ............................................................................................... 2
II. Company Profile ................................................................................................................................................. 5
III. Accouonting & Business Highlights................................................................................................................. 7
IV. Report of the Board of Directors...................................................................................................................... 9
V. Significant Events.............................................................................................................................................. 14
VI. Change in Shares & Shareholders ................................................................................................................. 16
VII. Directors, Supervisors & Senior Management Staff................................................................................... 20
VIII. Financial Statements .................................................................................................................................... 21
IX. Documents Available for Reference ............................................................................................................. 101
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2013 Semi-annual Report of Changchai Company, Limited
Explanation
Term Refers to Contents
Company, the Company, Changchai Refers to Changchai Company, Limited
Changchai Benniu Refers to Chuangzhou Changchai Benniu Diesel Engine Fittings Co., Ltd.
Changchai Wanzhou Refers to Changchai Wanzhou Diesel Engine Co., Ltd
Housheng Investment Refers to Changzhou Housheng Investment Co., Ltd.
Chansun International Refers to Chansun International (Pte.) Ltd.
Fuji Robin Refers Changzhou Changchai Fuji Robin Gasoline Engine Co., Ltd.
Yuan, Ten thousand Yuan Refers to RMB Yuan, RMB Ten thousand
Reporting period Refers to 1 Jan. 2013-30 Jun. 2013
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2013 Semi-annual Report of Changchai Company, Limited
II. Company Profile
I. Basic information of the Company
Stock abbreviation SCCA, SCCB Stock code 000570, 200570
Stock exchange listed with Shenzhen Stock Exchange
Chinese name of the Company 常柴股份有限公司
Abbr. of the Chinese name of the Company (if any) 苏常柴
English name of the Company (if any) CHANGCHAI COMPANY,LIMITED
Abbr. of the English name of the Company (if any) CHANGCHAI CO.,LTD.
Legal representative of the Company Xue Guojun
II. For Contact
Company Secretary Securities Affairs Representative
Name Shi Jianchun He Jianjiang
Contact address 123 Huaide Middle Road, Changzhou, Jiangsu, China 123 Huaide Middle Road, Changzhou, Jiangsu, China
Tel. (86)519-86610041 (86)519-68683155
Fax (86)519-86630954 (86)519-86630954
E-mail ccsjc@changchai.com cchjj@changchai.com
III. Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the
Company during the reporting period?
□ Applicable √ Inapplicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2012 Annual Report.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report
and the location where this report is placed did not change during the reporting period. The said information can be found in the 2012
Annual Report.
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2013 Semi-annual Report of Changchai Company, Limited
3. Change of the registered information
Did any change occur to the registered information during the reporting period?
√ Applicable □ Inapplicable
Business license Registration code of
Registration date Registration place Organizational code
No. taxation
Changzhou Municipal
Initial registration 5 May 1994 Administration Bureau for 13715586-3 320400137155863 13479241-0
Industry and Commence
Changzhou Municipal
At the end of the
8 Mar. 2010 Administration Bureau for 320400000004012 320400134792410 13479241-0
reporting period
Industry and Commence
4. Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Inapplicable
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2013 Semi-annual Report of Changchai Company, Limited
III. Accounting & Business Highlights
I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB Yuan) 1,597,702,698.46 1,599,480,212.75 -0.11%
Net profit attributable to shareholders of
39,865,197.16 29,802,438.47 33.76%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 40,197,891.46 25,424,883.61 58.10%
losses (RMB Yuan)
Net cash flows from operating activities
86,671,315.58 207,869,158.63 -58.30%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.07 0.05 40.00%
Diluted EPS (RMB Yuan/share) 0.07 0.05 40.00%
Weighted average ROE (%) 2.20% 1.66% 0.54%
As at the end of the
As at the end of last year YoY +/-（％）
reporting period
Total assets (RMB Yuan) 3,159,344,495.44 3,116,489,064.01 1.38%
Net assets attributable to shareholders of
1,770,883,931.54 1,845,193,200.65 -4.03%
the Company (RMB Yuan)
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the Net assets attributable to shareholders of the
Company Company
Reporting period Same period of last year Closing amount Opening amount
According to Chinese
39,865,197.16 29,802,438.47 1,770,883,931.54 1,845,193,200.65
accounting standards
Items and amounts adjusted according to international accounting standards
According to international 39,865,197.16 29,802,438.47 1,770,883,931.54 1,845,193,200.65
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2013 Semi-annual Report of Changchai Company, Limited
accounting standards
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
No difference
III. Items and amounts of extraordinary gains and losses
Unit: RMB Yuan
Item Amount (RMB Yuan) Explanation
Net gain on disposal of fixed
Gains/losses on the disposal of non-current assets 269,485.95
assets
Government grants recognized in the current period, except for
those acquired in the ordinary course of business or granted at
790,000.00
certain quotas or amounts according to the country’s unified
standards
Gains and losses on change in fair value from tradable financial
assets and tradable financial liabilities, as well as investment
income from disposal of tradable financial assets and tradable
219,367.20
financial liabilities and financial assets available for sales except
for effective hedging related with normal businesses of the
Company
Other gain/loss items that meet the definition of an extraordinary
-1,324,436.90
gain/loss
Minority interests effects 141,269.72
Income tax effects 145,840.83
Total -332,694.30
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
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2013 Semi-annual Report of Changchai Company, Limited
IV. Report of the Board of Directors
I. Overview
For the first half of 2013, the Company totally sold 658,600 units of various diesel engines and generator sets, up
1.81% over the same period of last year, including 571,200 units of single-cylinder diesel engines (a year-on-year
increase of 2.35%), 87,400 units of multi-cylinder diesel engines (a year-on-year decrease of 1.58%) and 5,914
units of generator sets and power units (a year-on-year increase of 160%). It achieved an export income of USD
19.96 million, up 21.32% over the same period of last year. Meanwhile, it achieved a sales income of RMB
1,597,702,700, down 0.11% from the same period of last year; and net profit attributable to shareholders of the
Company of RMB 39.8652 million, up 33.76% on the year-on-year basis.
In the reporting period, competition in the diesel engine market became fiercer. The Company vigorously
expanded markets at home and abroad, integrated production resources, optimized management and strictly
controlled the component cost. As a result, the Company maintained a good development. The production and
sales volume of single-cylinder diesel engines increased over the same period of last year, which was still the No.
1 in the industry. The market share of multi-cylinder diesel engines for agricultural machinery kept expanding
while that of multi-cylinder diesel engines for automobile dropped. The Company input more efforts in expanding
the export market, resulting in a much larger export income than the same period of last year. Comparing the first
half of 2013 with the same period of last year, the sales volume and income were basically the same, prices of raw
and auxiliary materials registered a slight drop, the gross profit rate increased profit grew considerably.
In the reporting period, the Company was carrying out planning, technical argumentation and some other
preparations for the light engine relocation project.
II. Main business analysis
Overview
YoY change of major financial data:
Unit: RMB Yuan
Reporting period Same period of last year YoY +/-% Main reasons for change
Operating revenues 1,597,702,698.46 1,599,480,212.75 -0.11%
Operating costs 1,432,960,897.52 1,472,951,393.72 -2.71%
Selling expenses 64,200,737.85 58,416,299.71 9.90%
Administrative expenses 74,097,146.15 48,141,907.24 53.91%
Financial expenses -7,612,793.48 -6,657,859.42 ——
Income tax expenses 7,353,641.41 5,506,929.91 33.53%
Net cash flows from
45,560,408.57 43,649,870.30 4.38%
operating activities
Net cash flows from 86,671,315.58 207,869,158.63 -58.30%
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2013 Semi-annual Report of Changchai Company, Limited
investing activities
Net cash flows from
-60,088,551.71 -81,630,310.74 ——
financing activities
Net increase in cash and
8,601,215.59 -37,463,297.14 ——
cash equivalents
Major changes to the profit structure or sources of the Company during the reporting period:
□ Applicable √ Inapplicable
No major changes occurred to the profit structure or sources of the Company during the reporting period.
Reporting period progress of the future development planning in the disclosed documents of the Company such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Inapplicable
The Company did not mention any future planning for the reporting period in its disclosed documents such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of the previously disclosed business plan in the reporting period:
III. Breakdown of main business
Unit: RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
Operating Gross profit rate of operating of gross profit
Operating costs of operating costs
revenues (%) revenues over last rate over last year
over last year (%)
year (%) (%)
Classified by industry:
Internal
combustion 1,585,168,723.53 1,426,375,878.12 10.02% 1.11% -1.19% 2.10%
engine
Classified by product:
Diesel engines 1,585,168,723.53 1,426,375,878.12 10.02% 1.11% -1.19% 2.10%
Classified by region:
Home 1,462,593,976.75 1,306,940,907.31 10.64% -1.04% -3.59% 2.36%
Overseas 122,574,746.78 119,434,970.81 2.56% 36.58% 35.74% 0.60%
V. Core competitiveness analysis
1. Brand advantage
Incorporated in 1913, the Company has a history over 100 years, with its diesel engines well
received both at home and abroad.
The trademark of “Changchai” was the first among the production goods in the country to be
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2013 Semi-annual Report of Changchai Company, Limited
recognized as a “Famous Trademark of China”. In 2005, the single-cylinder diesel engines of the
Company were among the first to be titled as “Brandname Products of China”. For decades, the
Company developed in a sound manner and cultivated the “Changchai” brand, a famous small
diesel engine brand of China with independent intellectual property rights
2. Product advantage
Currently, the Company is mainly engaged in small power single-cylinder and multi-cylinder diesel
engines. It has a complete product range, a wide power level coverage, a high reputation and
intellectual property rights for its main products. It owns a state-level technical center, a post
doctoral scientific research station and Jiangsu Small-and Medium-Power Internal Combustion
Engine Engineering Research Center. Quite a few of its multi-cylinder diesel engines have passed
the European Union EC certification and the America EPA certification. Besides, it has the
capability to develop and put into pass production products meeting the national emission standard
III and IV.
3. Sales network advantage
The Company has built up a sales service network covering the whole country. With 11 marketing
units, 31 sales service centers, over 400 service locations and 600 cooperation maintenance stations,
the service network covering the major cities and the countryside, the Company is able to provide
quality, efficient and timely services for its customers.
VI. Investment analysis
1. Investments in equities of external parties
(1) Equity-holdings in financial enterprises
Gain/loss
Initial Opening Opening Closing Closing Closing in the
Enterprise Enterprise investment equity-hol equity-hol equity-hol equity-hol book value reporting Accountin Equity
name variety cost (RMB dings ding ratio dings ding ratio (RMB period g title source
Yuan) (share) (%) (share) (%) Yuan) (RMB
Yuan)
Bank of Long-term
Commerci 38,000,0 38,000,0 38,000,0 38,000,0 Promoter’s
Jiangsu 0.42% 0.42% 0.00 equity
al bank 00.00 00 00 00.00 shares
Co., Ltd. investment
38,000,0 38,000,0 38,000,0 38,000,0
Total -- -- 0.00 -- --
00.00 00 00 00.00
(2) Securities investments
Initial
Variety of Code of Name of Number Sharehold Number Sharehold Closing Gain/loss Accounti Source of
investmen
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2013 Semi-annual Report of Changchai Company, Limited
securities securities securities t cost of shares ing of shares ing book for ng title stock
(RMB held at percentag held at percentag value reporting
Yuan) period-be e at period-en e at (RMB period
gin period-be d period-en Yuan) (RMB
gin d Yuan)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Explanation about shareholdings in other listed companies:
√Applicable □ Inapplicable
At the reporting period-end, the Company held salable financial assets accounting to 72,250,000 shares of “Futon
Automobile” and 50,000 shares of “Ninglu High-speed”.
2. Analysis to main subsidiaries and shareholding companies
Particulars about main subsidiaries and shareholding companies:
Unit: RMB Yuan
Main Operating Operating
Company Company Registered Total assets Net assets Net profit
Industry products/ser revenues (RMB profit (RMB
name variety capital (RMB Yuan) (RMB Yuan) (RMB Yuan)
vices Yuan) Yuan)
Diesel
Changchai Machinery
Subsidiary engine 55063000.00 156,747,805.57 111,665,139.14 87,192,497.64 -1,244,157.47 23,472.50
Benniu manufacture
fittings
Changchai Machinery Diesel
Subsidiary 35000000.00 120,815,048.77 51,684,509.03 54,124,993.79 1,627,960.49 1,383,921.93
Wanzhou manufacture engines
External
investment
Housheng Financial
Subsidiary and 30000000.00 33,891,941.62 32,316,961.37 1,004,450.00 748,889.34 561,666.99
Investment services
consulting
service
Chansun Sale of
200000.00U
Internationa Subsidiary Trade diesel 1,329,095.49 1,175,801.47 0.00 -73,304.66 -69,355.09
SD
l engines
Changzhou
Changchai
Fuji Robin Shareholdin Machinery Gasoline 4500000.00
92,169,154.96 58,176,009.74 105,155,341.76 2,316,927.70 1,737,695.77
Gasoline g company manufacture engines USD
Engine Co.,
Ltd.
VII. Particulars about distribution of profits in the reporting period
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2013 Semi-annual Report of Changchai Company, Limited
Particulars about operation and adjustment of profits distribution schemes, such as cash bonus scheme, transfer of
capita reserve into stock capital in the reporting period
√Applicable □ Inapplicable
Affirmed by General Meeting of Shareholders 0f the year 2012 in 26 June 2013, the Company adopted the
following equity rights distribution programs in 2012: the Company distributed RMB 0.25 for per 10 shares to all
the shareholders on the basis of general capitals of 561,374,326 shares. On July 10 2013, the Company issued
announcement about the implement of equity rights distribution in 2012. Equity rights registered date of A shares:
17 July 2013, divided except authority date: 18 July 2013; last trading day of B shares: 17 July 2013, equity rights
registered date: 22 July 2013, divided except authority date: 18 July 2013.
The implementation of profits distribution of the year of 2012 was finished.
VII Registry form of activities of survey, communication and interview in the reporting
period
Main content of
Location of Type of
Time of reception Way of reception Interviewee discussion and
reception interviewee
information provided
Business condition and
Telephone Individual
20 March 2013 Company Individual future development of
communication investor
the Company
Company Business condition and
Telephone Individual
14 May 2013 Individual future development of
communication investor
the Company
Company Business condition and
Telephone Individual
12 June 2013 Individual future development of
communication investor
the Company
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2013 Semi-annual Report of Changchai Company, Limited
V. 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.
In line with all kinds of laws and regulations, the same industry of the Company, business pattern and business
character, the Company established an internal control system which ran through every aspect of daily operating
management, and continuously optimized it to form a normative management system. This system includes a
series of management system, process and standard, such as financial assets control, human resource management,
quality environment management, internal auditing supervisor and every operating aspect, to make sure works
flow smoothly.
There is not discrepancy between the corporate governance and Company Law, relevant regulations of CSRC.
II. Significant litigations and arbitrations
√Applicable □ Inapplicable
Amount Progress of Execution
Forming the Trial result and
Basic situation of involved in the situation on the
estimated influence of the Disclosure Disclosure
the litigation the litigation litigation judgment of the
liabilities or litigation date index
(arbitration) (arbitration) (arbitration) litigation
not? (arbitration)
(RMB 0’000) (arbitration)
About the lawsuit
case of Shandong
Hongli Group Co.,
Ltd., the accused
company owed
accumulatively
RMB 14.36 Under the
million to the compulsory
Company. The Judged for execution by the
Company sued to 1,436 No the second court and in the
Changzhou trial process of
Intermediate liquidation and
People’s Court in bankruptcy
2001 and sued for
compulsory
execution in April,
2002. Currently,
the defendant has
started the
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2013 Semi-annual Report of Changchai Company, Limited
bankruptcy
procedure.
III. Particulars on media’s queries
□Applicable √Inapplicable
There was no media’s query during the year.
V. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial reports was audited
□Yes √No
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2013 Semi-annual Report of Changchai Company, Limited
VI. Change in Share Capital and Particulars about Shareholders
I. Particulars about the changes in share capital
Before the change Increase/decrease (+, -) After the change
Issuance Issuance
Proportion Proportion Proportio
Amount of new Amount of new Amount 比例(%)
(%) (%) n (%)
shares shares
I. Shares subject to
0 0% 0 0%
moratorium
1. Shares held by the State 0 0% 0 0%
2. Shares held by
0 0% 0 0%
state-owned corporation
3. Other shares held by
0 0% 0 0%
domestic investors
Including: shares held
by domestic
0 0% 0 0%
non-state-owned
corporation
Shares held by domestic
0 0% 0 0%
natural person
4. Shares held by foreign
0 0% 0 0%
investors
Including: shares held
0 0% 0 0%
by foreign corporation
Shares held by foreign
0 0% 0 0%
natural person
5. Shares held by senior
0 0% 0 0%
executives
II. Shares not subject to 561,374,3 561,374,3
100% 100%
trading moratorium 26 26
411,374,3 411,374,3
1. RMB ordinary shares 73.28% 73.28%
26 26
2. Domestically listed 150,000,0 150,000,0
26.72% 26.72%
foreign shares 00 00
3. Overseas listed foreign
0 0% 0 0%
shares
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2013 Semi-annual Report of Changchai Company, Limited
4. Others 0 0% 0 0%
561,374,3 561,374,3
III. Total shares 100% 100%
26 26
Reason for the changes in share capital
□Applicable √Inapplicable
Approval for changes in share capital
□ Applicable √ Inapplicable
Transfer for changes in share capital
□Applicable √Inapplicable
Effects of changes in share capital on the basic EPS, diluted EPS, net assets per share attributable to common
shareholders of the Company and other financial indexes over the last year and last period
□ Applicable √ Inapplicable
Other contents that the Company considers necessary or required by the securities regulatory authorities to
disclose
□ Applicable √ Inapplicable
Change of the total shares, shareholder structure, asset structure and liability structure
□ Applicable √ Inapplicable
II. Total number of shareholders and their shareholdings
Unit: share
Total number of shareholders at the end of
76,344
the reporting period
Particulars about shares held by shareholders with a shareholding percentage over 5%
Nature Nature of shareholder
Name of
Nature of Name of Nature of of Name of
Name of shareholder sharehol
shareholder shareholder shareholder sharehol shareholder Situation
der
der
State-owned Assets
Supervision and
Administration On behalf of the
30.02% 168,497,736 0 0 168,497,736
Commission of State
Changzhou Municipal
People’s Government
BNP PARIBAS
WEALTH
Foreign
MANAGEMENT 1.36% 7,619,573 0 7,619,573
corporation
HONG KONG
BRANCH
Huabao Trust Co., Ltd. Other 0.42% 2,361,800 0 2,361,800
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2013 Semi-annual Report of Changchai Company, Limited
–a single type money
trust R2007ZX103
ING ASIA PRIVATE Foreign
0.41% 2,290,000 0 2,290,000
BANK LIMITED corporation
Domestic natural
Li Xiang 0.41% 2,279,113 0 2,279,113
person
Domestic natural
Zhao Shijun 0.4% 2,271,731 0 2,271,731
person
CORE
PACIFIC-YAMAICHI Foreign
0.4% 2,265,562 0 2,265,562
INTERNATIONAL corporation
(H.K.) LIMITED
Zhonghai Trust Co.,
Ltd.– Zhonghai Jufa -
Other 0.37% 2,059,809 0 2,059,809
new share agreed
purchase 1 money trust
Domestic natural
Wang Jinshan 0.35% 1,956,189 0 1,956,189
person
Domestic natural
Liu Tao 0.34% 1,898,600 0 1,898,600
person
It is unknown whether there was any associated relationship among the top ten tradable
Explanation on associated relationship
shareholders and among the top ten shareholders not subject to trading moratorium, or
or/and persons acting in concert among the
whether they are persons acting in concert as described by Measures for the
above-mentioned shareholders:
Administrative of Disclosure of Shareholder Equity Changes.
Particulars about shares held by the top ten shareholders holding shares not subject to trading moratorium
Name of shareholder
Name of shareholder Name of shareholder
Type Number
State-owned Assets Supervision and
Administration Commission of Changzhou 168,497,736 RMB ordinary share 168,497,736
Municipal People’s Government
BNP PARIBAS WEALTH MANAGEMENT
7,619,573 Domestically listed foreign shares 7,619,573
HONG KONG BRANCH
Huabao trust co., LTD. –a single type of asset trust
2,361,800 RMB ordinary share 2,361,800
R2007ZX103
ING ASIA PRIVATE BANK LIMITED 2,290,000 Domestically listed foreign shares 2,290,000
Lixiang 2,279,113 RMB ordinary share 2,279,113
Zhao Shijun 2,271,731 RMB ordinary share 2,271,731
CORE PACIFIC-YAMAICHI INTERNATIONAL
2,265,562 Domestically listed foreign shares 2,265,562
(H.K.) LIMITED
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2013 Semi-annual Report of Changchai Company, Limited
Zhonghai trust co., LTD. – Zhonghai Jufa - new
2,059,809 RMB ordinary share 2,059,809
share agreed purchase 1 money trust
Wang Jinshan 1,956,189 RMB ordinary share 1,956,189
Liu Tao 1,898,600 RMB ordinary share 1,898,600
It is unknown whether there was any associated relationship among the top ten
Explanation on associated relationship or/and
tradable shareholders and among the top ten shareholders not subject to trading
persons acting in concert among the
moratorium, or whether they are persons acting in concert as described by
above-mentioned shareholders:
Measures for the Administrative of Disclosure of Shareholder Equity Changes.
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
III. Changes in controlling shareholders or actual controllers
Change of the controlling shareholder during the reporting period
□ Applicable √ Inapplicable
Change of the actual controller during the reporting period
□ Applicable √ Inapplicable
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2013 Semi-annual Report of Changchai Company, Limited
VII. Directors, Supervisors & Senior Management Staff
I. Changes in shareholding of directors, supervisors and senior management staffs
□ Applicable √ Inapplicable
There is no change in shareholding of directors, supervisors and senior management staffs during the reporting period, for details
please refer to the annual report of 2012.
II. Directors, supervisors and senior management staff who left their posts
Name Position Type Date Reason
Jiang Huaping director Employment 26 June, 2013 Selected by the general meeting of shareholders
Zhong Lei supervisor Employment 26 June, 2013 Selected by the general meeting of shareholders
Xie Guozhhong supervisor Employment 26 June, 2013 Selected by the general meeting of shareholders
Liu Yi supervisor Employment 26 June, 2013 Selected by the general meeting of shareholders
Wei Jinxiang Vice president Employment 26 June, 2013 Employed by the board of directors
Expired and left
Lu Jiaxiang director 26 June, 2013 leave the post for the term expired
the post
Expired and left
Lv Weiming supervisor 26 June, 2013 leave the post for the term expired
the post
Expired and left
Yuan Xiaodong supervisor 26 June, 2013 leave the post for the term expired
the post
Expired and left
Wu Keyun supervisor 26 June, 2013 leave the post for the term expired
the post
Expired and left
Xu Zhenping Vice president 26 June, 2013 leave the post for the term expired
the post
Expired and left
Ni Shiyuan Vice president 26 June, 2013 leave the post for the term expired
the post
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2013 Semi-annual Report of Changchai Company, Limited
VIII. Financial Statements
I. Audit report
Have these financial statements been audited?
□ Yes √ No
These financial statements for the first half of 2013 have not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 793,569,033.81 744,494,588.07
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 186,038,936.00 205,845,568.10
Accounts receivable 505,007,149.00 299,208,278.88
Accounts paid in advance 16,359,518.07 15,111,761.78
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 25,583,400.39 12,892,742.09
Financial assets purchased under
agreements to resell
Inventories 362,755,769.95 452,271,304.37
Non-current assets due within 1 year
21
2013 Semi-annual Report of Changchai Company, Limited
Other current assets 127,017.24
Total current assets 1,889,440,824.46 1,729,824,243.29
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 368,744,500.00 486,503,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 64,392,095.43 63,818,655.83
Investing property 62,801,882.03 63,906,052.43
Fixed assets 565,763,739.20 566,044,962.19
Construction in progress 122,013,648.13 119,576,338.33
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 85,435,606.19 86,063,611.94
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 752,200.00 752,200.00
Other non-current assets
Total of non-current assets 1,269,903,670.98 1,386,664,820.72
Total assets 3,159,344,495.44 3,116,489,064.01
Current liabilities:
Short-term borrowings 30,000,000.00 20,000,000.00
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 390,883,160.00 346,039,002.00
Accounts payable 585,087,751.18 599,455,800.00
Accounts received in advance 68,530,551.82 31,650,567.34
Financial assets sold for repurchase
22
2013 Semi-annual Report of Changchai Company, Limited
Handling charges and commissions
payable
Employee’s compensation payable 26,390,237.49 44,726,018.55
Tax payable -31,818,979.35 -57,736,771.71
Interest payable
Dividend payable 17,925,791.98 3,891,433.83
Other accounts payable 170,178,586.47 135,442,533.37
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
Other current liabilities 3,067,254.75 2,430,896.10
Total current liabilities 1,260,244,354.34 1,125,899,479.48
Non-current liabilities:
Long-term borrowings 0.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 49,030,500.00 66,694,275.00
Other non-current liabilities 63,038,726.56 62,558,726.56
Total non-current liabilities 112,069,226.56 129,253,001.56
Total liabilities 1,372,313,580.90 1,255,152,481.04
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 448,855,654.25 548,950,379.25
Less: Treasury stock
Specific reserves 4,169,087.73 4,169,087.73
Surplus reserves 282,364,917.36 282,364,917.36
Provisions for general risks
23
2013 Semi-annual Report of Changchai Company, Limited
Retained profits 474,197,400.07 448,366,561.06
Foreign exchange difference -77,453.87 -32,070.75
Total equity attributable to owners of
1,770,883,931.54 1,845,193,200.65
the Company
Minority interests 16,146,983.00 16,143,382.32
Total owners’ (or shareholders’) equity 1,787,030,914.54 1,861,336,582.97
Total liabilities and owners’ (or
3,159,344,495.44 3,116,489,064.01
shareholders’) equity
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
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 778,639,202.11 708,748,963.75
Transactional financial assets
Notes receivable 182,918,936.00 204,145,568.10
Accounts receivable 470,732,625.73 270,792,908.11
Accounts paid in advance 7,608,623.26 5,262,544.00
Interest receivable
Dividend receivable
Other accounts receivable 6,786,890.00 10,649,609.55
Inventories 295,533,022.17 394,078,425.44
Non-current assets due within 1 year
Other current assets
Total current assets 1,742,219,299.27 1,593,678,018.95
Non-current assets:
Available-for-sale financial assets 368,744,500.00 486,503,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 184,810,335.43 184,236,895.83
24
2013 Semi-annual Report of Changchai Company, Limited
Investing property 62,801,882.03 63,906,052.43
Fixed assets 510,359,237.13 514,896,287.55
Construction in progress 58,900,682.49 54,016,629.18
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 83,351,100.53 83,950,840.94
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 752,200.00 752,200.00
Other non-current assets
Total of non-current assets 1,269,719,937.61 1,388,261,905.93
Total assets 3,011,939,236.88 2,981,939,924.88
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 390,883,160.00 342,039,002.00
Accounts payable 541,838,710.23 550,360,525.50
Accounts received in advance 68,311,518.64 41,410,038.64
Employee’s compensation payable 23,204,264.67 40,928,015.45
Tax payable -23,947,545.87 -50,279,283.71
Interest payable
Dividend payable 17,277,538.12 3,243,179.97
Other accounts payable 165,243,690.61 131,766,779.90
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 1,182,811,336.40 1,059,468,257.75
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
25
2013 Semi-annual Report of Changchai Company, Limited
Specific payables
Estimated liabilities
Deferred income tax liabilities 49,030,500.00 66,694,275.00
Other non-current liabilities 63,038,726.56 62,558,726.56
Total non-current liabilities 112,069,226.56 129,253,001.56
Total liabilities 1,294,880,562.96 1,188,721,259.31
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 460,883,809.95 560,978,534.95
Less: Treasury stock
Specific reserves 4,169,087.73 4,169,087.73
Surplus reserves 282,364,917.36 282,364,917.36
Provisions for general risks
Retained profits 408,266,532.88 384,331,799.53
Foreign exchange difference
Total owners’ (or shareholders’) equity
1,717,058,673.92 1,793,218,665.57
Total liabilities and owners’ (or
3,011,939,236.88 2,981,939,924.88
shareholders’) equity
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
3. Consolidated income statement
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Total operating revenues 1,597,702,698.46 1,599,480,212.75
Including: Sales income 1,597,702,698.46 1,599,480,212.75
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 1,562,568,115.06 1,577,236,465.99
26
2013 Semi-annual Report of Changchai Company, Limited
Including: Cost of sales 1,432,960,897.52 1,472,951,393.72
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 277,350.13 161,974.43
Selling and distribution expenses 64,200,737.85 58,416,299.71
Administrative expenses 74,097,146.15 48,141,907.24
Financial expenses -7,612,793.48 -6,657,859.42
Asset impairment loss -1,355,223.11 4,222,750.31
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”
12,352,806.80 8,953,989.19
means loss)
Including: share of profits in associates
and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 47,487,390.20 31,197,735.95
Add: non-operating income 2,444,279.30 7,109,940.84
Less: non-operating expense 2,709,230.25 2,779,218.80
Including: loss from non-current asset
17,207.16 601,158.15
disposal
IV. Total profit (“-” means loss) 47,222,439.25 35,528,457.99
Less: Income tax expense 7,353,641.41 5,506,929.91
V. Net profit (“-” means loss) 39,868,797.84 30,021,528.08
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
39,865,197.16 29,802,438.47
Company
27
2013 Semi-annual Report of Changchai Company, Limited
Minority shareholders’ income 3,600.68 219,089.61
VI. Earnings per share -- --
(I) Basic earnings per share 0.07 0.05
(II) Diluted earnings per share 0.07 0.05
Ⅶ. Other comprehensive incomes -100,140,108.12 82,298,918.08
Ⅷ. Total comprehensive incomes -60,271,310.28 112,320,446.16
Attributable to owners of the
-60,274,910.96 112,101,356.55
Company
Attributable to minority
3,600.68 219,089.61
shareholders
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
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Total sales 1,611,325,164.28 1,607,060,158.74
Less: cost of sales 1,459,842,700.85 1,496,934,202.57
Business taxes and surcharges
Distribution expenses 61,139,755.87 54,949,176.66
Administrative expenses 66,196,199.72 41,350,985.75
Financial costs -8,792,831.94 -8,156,193.81
Impairment loss -1,355,223.11 2,873,555.97
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-” means
12,133,439.60 8,723,526.00
loss)
Including: income form investment on
associates and joint ventures
II. Business profit (“-” means loss) 46,428,002.49 27,831,957.60
Add: non-business income 1,172,586.26 6,872,462.11
Less: non-business expense 2,709,116.75 2,749,218.80
Including: loss from non-current asset 17,207.16
28
2013 Semi-annual Report of Changchai Company, Limited
disposal
III. Total profit (“-” means loss) 44,891,472.00 31,955,200.91
Less: income tax expense 6,922,380.50 4,758,013.45
IV. Net profit (“-” means loss) 37,969,091.50 27,197,187.46
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income -100,094,725.00 82,298,918.08
VII. Total comprehensive income -62,125,633.50 109,496,105.54
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
5. Consolidated cash flow statement
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Cash flows from operating activities:
Cash received from sale of
1,616,369,972.24 1,748,751,589.44
commodities and rendering of service
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
29
2013 Semi-annual Report of Changchai Company, Limited
Net increase of intra-group
borrowings
Net increase of funds in
repurchase business
Tax refunds received 23,964,783.80 26,359,104.71
Other cash received relating to
24,647,890.64 16,512,408.28
operating activities
Subtotal of cash inflows from operating
1,664,982,646.68 1,791,623,102.43
activities
Cash paid for goods and services 1,356,780,835.29 1,380,761,003.27
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 157,035,563.67 153,967,006.79
Various taxes paid 21,549,567.29 9,539,003.49
Other cash payment relating to
42,945,364.85 39,486,930.25
operating activities
Subtotal of cash outflows from
1,578,311,331.10 1,583,753,943.80
operating activities
Net cash flows from operating activities 86,671,315.58 207,869,158.63
II. Cash flows from investing activities:
Cash received from withdrawal of
0.00 15,486,490.34
investments
Cash received from return on
11,779,367.20 8,900,463.19
investments
Net cash received from disposal of
fixed assets, intangible assets and other 286,693.11 2,964,690.64
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to 5,000,000.00
30
2013 Semi-annual Report of Changchai Company, Limited
investing activities
Subtotal of cash inflows from
17,066,060.31 27,351,644.17
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 56,154,612.02 83,862,517.79
assets
Cash paid for investment 0.00 15,119,437.12
Net increase of pledged loans
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
21,000,000.00 10,000,000.00
investing activities
Subtotal of cash outflows from
77,154,612.02 108,981,954.91
investing activities
Net cash flows from investing activities -60,088,551.71 -81,630,310.74
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 20,500,000.00 33,000,000.00
Cash received from issuance of
bonds
Other cash received relating to
4,955.77 0.00
financing activities
Subtotal of cash inflows from financing
20,504,955.77 33,000,000.00
activities
Repayment of borrowings 10,500,000.00 60,000,000.00
Cash paid for interest expenses and
1,403,740.18 10,463,297.14
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority shareholders
Other cash payments relating to
financing activities
Sub-total of cash outflows from
11,903,740.18 70,463,297.14
financing activities
31
2013 Semi-annual Report of Changchai Company, Limited
Net cash flows from financing activities 8,601,215.59 -37,463,297.14
IV. Effect of foreign exchange rate
-45,383.12 -1,481.92
changes on cash and cash equivalents
V. Net increase in cash and cash
35,138,596.34 88,774,068.83
equivalents
Add: Opening balance of cash and
637,004,823.27 470,293,043.20
cash equivalents
VI. Closing balance of cash and cash
672,143,419.61 559,067,112.03
equivalents
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
6. Cash flow statement of the Company
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun 2012
I. Cash flows from operating activities:
Cash received from sale of
1,611,461,476.63 1,731,463,226.76
commodities and rendering of service
Tax refunds received 23,964,783.80 25,094,793.80
Other cash received relating to
20,158,573.47 15,664,736.12
operating activities
Subtotal of cash inflows from operating
1,655,584,833.90 1,772,222,756.68
activities
Cash paid for goods and services 1,366,693,890.34 1,409,751,006.75
Cash paid to and for employees 141,588,380.76 138,645,503.69
Various taxes paid 17,960,083.75 6,611,058.31
Other cash payment relating to
41,358,406.67 32,645,603.38
operating activities
Subtotal of cash outflows from
1,567,600,761.52 1,587,653,172.13
operating activities
Net cash flows from operating activities 87,984,072.38 184,569,584.55
II. Cash flows from investing activities:
Cash received from retraction of
investments
32
2013 Semi-annual Report of Changchai Company, Limited
Cash received from return on
11,560,000.00 8,670,000.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 286,693.11 2,921,547.76
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
11,846,693.11 11,591,547.76
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 47,695,953.82 68,072,114.90
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
50,000,000.00
investing activities
Subtotal of cash outflows from
47,695,953.82 118,072,114.90
investing activities
Net cash flows from investing activities -35,849,260.71 -106,480,567.14
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings
Cash received from issuance of
bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
0.00
activities
Repayment of borrowings 0.00 30,000,000.00
Cash paid for interest expenses and
180,422.71 8,466,263.12
distribution of dividends or profit
Other cash payments relating to
financing activities
33
2013 Semi-annual Report of Changchai Company, Limited
Sub-total of cash outflows from
180,422.71 38,466,263.12
financing activities
Net cash flows from financing activities -180,422.71 -38,466,263.12
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
51,954,388.96 39,622,754.29
equivalents
Add: Opening balance of cash and
605,259,198.95 440,239,150.22
cash equivalents
VI. Closing balance of cash and cash
657,213,587.91 479,861,904.51
equivalents
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
7. Consolidated Statement of Changes in Owners’ Equity
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Jan.-Jun. 2013
Jan.-Jun. 2013
Equity attributable to owners of the Company Equity
Equity
Paid-up attributabl
attributable
Item e to
capital Less: General
Capital Specific Surplus Retaine to owners
(or treasury risk Others owners of
reserve reserve reserve d profit of the
share stock reserve the
Company
capital) Company
I. Balance at the end of the 561,374 548,950, 4,169,08 282,364 448,366, -32,070. 16,143,38 1,861,336,
previous year ,326.00 379.25 7.73 ,917.36 561.06 75 2.32 582.97
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374 548,950, 4,169,08 282,364 448,366, -32,070. 16,143,38 1,861,336,
the year ,326.00 379.25 7.73 ,917.36 561.06 75 2.32 582.97
III. Increase/ decrease in the -100,09 25,830,8 -45,383. -74,305,66
3,600.68
period (“-” means decrease) 4,725.00 39.01 12 8.43
34
2013 Semi-annual Report of Changchai Company, Limited
39,865,1 39,868,797
(I) Net profit 3,600.68
97.16 .84
(II) Other comprehensive -100,09 -45,383. -100,140,1
incomes 4,725.00 12 08.12
-100,09 39,865,1 -45,383. -60,271,31
Subtotal of (I) and (II) 3,600.68
4,725.00 97.16 12 0.28
(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
-14,034, -14,034,35
(IV) Profit distribution
358.15 8.15
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to -14,034, -14,034,35
owners (or shareholders) 358.15 8.15
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
35
2013 Semi-annual Report of Changchai Company, Limited
(Ⅶ) Other
561,374 448,855, 4,169,08 282,364 474,197, -77,453. 16,146,98 1,787,030,
IV. Closing balance
,326.00 654.25 7.73 ,917.36 400.07 87 3.00 914.54
Jan.-Jun. 2012
Unit: RMB Yuan
Jan.-Jun. 2013
Equity attributable to owners of the Company Equity
Equity
Paid-up attributabl
attributable
Item e to
capital Less: General
Capital Specific Surplus Retaine to owners
(or treasury risk Others owners of
reserve reserve reserve d profit of the
share stock reserve the
Company
capital) Company
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: retrospective
adjustment due to business
combination under the same
control
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 in the 82,300,4 29,802,4 16,358.0 219,089.6 112,338,28
period (“-” means decrease) 00.00 38.47 8 1 6.16
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
payments recognized in
36
2013 Semi-annual Report of Changchai Company, Limited
owners’ equity
3. Others
(IV) Profit distribution
1. Appropriations to
surplus 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. 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
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
8. Statement of Changes in Owners’ Equity of the Company
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Jan.-Jun. 2013
Item Jan.-Jun. 2013
37
2013 Semi-annual Report of Changchai Company, Limited
Paid-up Paid-up Paid-up Paid-up Paid-up Paid-up Paid-up Paid-up
capital (or capital (or capital (or capital (or capital (or capital (or capital (or capital (or
share share share share share share share share
capital) capital) capital) capital) capital) capital) capital) capital)
I. Balance at the end of the 561,374,32 560,978,53 4,169,087. 282,364,91 384,331,79 1,793,218,
previous year 6.00 4.95 73 7.36 9.53 665.57
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374,32 560,978,53 4,169,087. 282,364,91 384,331,79 1,793,218,
the year 6.00 4.95 73 7.36 9.53 665.57
III. Increase/ decrease in the -100,094,7 23,934,733 -76,159,99
period (“-” means decrease) 25.00 .35 1.65
37,969,091 37,969,091
(I) Net profit
.50 .50
(II) Other comprehensive -100,094,7 -100,094,7
incomes 25.00 25.00
-100,094,7 37,969,091 -62,125,63
Subtotal of (I) and (II)
25.00 .50 3.50
(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
(V) Internal carry-forward of -14,034,35 -14,034,35
owners’ equity 8.15 8.15
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 -14,034,35 -14,034,35
making up losses 8.15 8.15
4. Other
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2013 Semi-annual Report of Changchai Company, Limited
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
IV. Closing balance
(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
561,374,32 460,883,80 4,169,087. 282,364,91 408,266,53 1,717,058,
4. Other
6.00 9.95 73 7.36 2.88 673.92
Jan.-Jun. 2012
Unit: RMB Yuan
Jan.-Jun. 2012
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 in the 82,300,400 27,197,187 109,497,58
period (“-” means decrease) .00 .46 7.46
27,197,187 27,197,187
(I) Net profit
.46 .46
(II) Other comprehensive 82,300,400 82,300,400
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2013 Semi-annual Report of Changchai Company, Limited
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
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
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2013 Semi-annual Report of Changchai Company, Limited
Ⅲ. C o m p a n y P r o f i l e
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
change with the administrative authorities for industry and commerce, and obtained the renewed
business license as legal person with No. 320400000004012. The Company’ 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 2th Session of the 7th Board of Directors
on 14 Aug. 2013.
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
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2013 Semi-annual Report of Changchai Company, Limited
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
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
(1) 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
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2013 Semi-annual Report of Changchai Company, Limited
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
(1) Foreign currency business
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.
(2) Translation of financial statements in foreign currency
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’
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.
(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
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2013 Semi-annual Report of Changchai Company, Limited
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
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
The term "transfer of a financial asset" refers to the Company transferring or delivering a financial
asset to a party other than the issuer of the financial asset.
Where the Company has transferred nearly all of the risks and rewards related to the ownership of
the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly
all of the risks and rewards related to the ownership of the financial asset, it shall not stop
recognizing the financial asset.
Where the Company does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to the circumstances as follows,
respectively: If it gives up its control over the financial asset, it shall stop recognizing the financial
asset and recognize the asset and liability thereof; If it does not give up its control over the
financial asset, it shall, according to the extent of its continuous involvement in the transferred
financial asset, recognize the related financial asset and recognize the relevant liability
accordingly.
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2013 Semi-annual Report of Changchai Company, Limited
(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.
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 1,000,000)
provision of the accounts receivable with significant single amounts
The Company makes an independent impairment test on the
accounts receivable with significant single amount, and
provision for bad debts shall withdrawn on the basis of the
balance between the current values of the predicted future
Withdrawal method of bad debt provision of the accounts receivable
cash flow lower than book value. Upon independent
with significant single amounts
impairment test, the accounts receivable with 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
Aging group Aging analysis method Withdrawal in accordance with the aging analysis method
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Withdrawal proportion of accounts
Aging Withdrawal proportion of other accounts receivable
receivable
Within 1 year (including 1 year) 2% 2%
1－2 years 5% 5%
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2013 Semi-annual Report of Changchai Company, Limited
2－3 years 15% 15%
3－4 years 30% 30%
4－5 years 60% 60%
Over 5 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
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
Reason of individually withdrawing bad debt provision
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.
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
Withdrawal method of bad-debt provision flows and other relevant information. 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
Pricing method: Weighted average method
(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
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
Inventory system: Perpetual inventory system
(5) Amortization method of low-value consumption goods and packages
Low-value consumption goods
Amortization method: one time method
Packages
Amortization method: one time method
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2013 Semi-annual Report of Changchai Company, Limited
12 Long-term equity investments
(1) Recognition for initial investment 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
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,
47
2013 Semi-annual Report of Changchai Company, Limited
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.
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.
48
2013 Semi-annual Report of Changchai Company, Limited
(2) Depreciation method of various fixed assets
Type Depreciable life (year) Residual rate (%) Annual depreciation rate (%)
Houses and buildings
40 5%
Machine equipment
15 16.67%
Transportation equipment 10 20%
(3) 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.
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
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
49
2013 Semi-annual Report of Changchai Company, Limited
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. 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.
(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) Withdrawal of impairment provision of intangible assets
(1) As for the intangible assets with limited service life, which are amortized by straight-line
method when it is available for use within the service period, shall be recorded into the current
50
2013 Semi-annual Report of Changchai Company, Limited
profits and losses. The Company shall, at least at the end of each year, check the service life and
the amortization method of intangible assets with limited service life. When the service life and
the amortization method of intangible assets are different from those before, the years and method
of the amortization shall be changed.
(2) Intangible assets with uncertain service life may not be amortized. However, the Company
shall check the service life of intangible assets with uncertain service life during each accounting
period. Where there are evidences to prove the intangible assets have limited service life, it shall
be estimated of its service life, and be amortized according to the above method mentioned in (1).
(3) The rights to use land of the Company shall be amortized according to the rest service life.
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.
18. 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.
19. 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.
(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.
20. 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 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.
51
2013 Semi-annual Report of Changchai Company, Limited
21. Government Subsidies
(1) Category
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.
(2) Accounting treatment method
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
in the current profits and losses.
22. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
(2) Recognition basis of deferred income tax liabilities
23. 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
24. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
□Yes √No
Inapplicable
(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
V. Taxation
1. Main taxes and tax rate
Type of tax Taxation basis Tax rates
Payable to sales revenue
VAT 13%、17%
Business tax Taxable operating revenue 5%
Tax paid in accordance with the tax
Urban maintenance and construction tax Taxable turnover amount
regulations of tax units location
Taxable income of parent company and
Enterprise income tax 15%
subsidiary company Changwan
Enterprise income tax Taxable income of subsidiary companies 25%
52
2013 Semi-annual Report of Changchai Company, Limited
including Changben and Housheng
Property tax Income of leasing property 12%
70% of original value of independent
Property tax 1.2%
properties
Tax paid in accordance with the tax
Education expense surtax Taxable turnover amount
regulations of tax units location
Tax ratio of income tax of subsidiary companies and factories
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.
Ⅵ. Business combination and consolidated financial statements
Subsidiaries obtained by establishment or investment
Unit: Yuan
Balance
of
Amount parent
which compan
was y’s
Balance
used to equity
of other
deduct after
items
gains deductin
which The The Include
and g the
Full constitut proporti proporti d in
Register Minorit losses of differen
name of Register Busines Busines ed the on of on of consolid
Type ed Type y minority ce that
subsidia ed place s nature s scope actual holding voting ated
capital interest sharehol loss of
ry net shares rights stateme
ders in minority
investm （%） （%） nt
the interests
ent to
equities exceed
subsidia
of equity
ries
minority obtained
sharehol by
ders minority
sharehol
ders
Changc No. Producti
Limited
hai 1101, on and
Liability 350000 21,000, 6,416,0
Wanzho Xiamen Industry sales of 60% 60% Yes
Compan 00.00 000.00 31.23
u Diesel Road, diesel
y
Engine Wanzho engine
53
2013 Semi-annual Report of Changchai Company, Limited
Co., u
Ltd. District,
(Chang Chongqi
wan) ng
Changz
hou
Changc
Nangua
hai Producti
n
Benniu Limited on and
Village,
Diesel Liability 550630 sales of 46,616, 16,147,
Benniu Industry 84.66% 84.66% Yes
Engine Compan 00.00 diesel 400.00 000.68
Town,
Fittings y engine
Wujin
Co., fittings
District
Ltd.
(Benniu
)
External
enterpri
Changz
se
hou
No. 123, investm
Houshe
Limited Huadei ents,
ng
Liability Middle Service 300000 investm 30,000,
Investm 100% 100% Yes
Compan Road, industry 00.00 ent 000.00
ent Co.,
y Changz manage
Ltd
hou ment,
(Houshe
consulta
ng)
ncy
service
Purchasi
ng, sales
and
1 Ang
technica
Mo Kio
Chansu l service
Industri
n of
al Park
Internati Limited starting
2A#05- USD
onal Liability Service engine 200,000
12,Amk 200000. 100% 100% Yes
(Pte.) Compan industry of diesel .00
Tech 00
Ltd. y engine,
1,Singa
(Chansu gasoline
pore
n) engine,
(Singap
compon
ore)
ents,
supporti
ng
54
2013 Semi-annual Report of Changchai Company, Limited
equipme
nt of
starting
engine
of diesel
engine
and
gasoline
engine,
agricult
ural
equipme
nts etc.
VII. Notes to major items of the consolidated financial statement
1. Monetary funds
Ending amount Opening amount
Foreign Foreign
Item Conversion Conversion
currency currency
rate rate
amount amount
Cash： 389,316.31 415,168.06
RMB 389,316.31 415,168.06
Bank
636,589,655.21
savings： 671,754,103.30
RMB 657,798,962.23 616,853,574.65
USD 1,834,359.15 6.1787 11,333,954.88 2,802,144.67 6.2855 17,612,880.33
EUR 325,467.64 8.0536 2,621,186.19 255,265.97 8.3176 2,123,200.23
Other
monetary 107,489,764.80
capital 121,425,614.20
RMB 121,425,614.20 107,489,764.80
Total 793,569,033.81 744,494,588.07
Up to the end of period, other monetary capitals belonged to cash deposit of banker’s acceptance bill.
2. Notes receivable
(1) Classification of notes receivable
Type Ending amount Opening amount
Banker’s acceptance bills 186,038,936.00 205,845,568.10
Total 186,038,936.00 205,845,568.10
55
2013 Semi-annual Report of Changchai Company, Limited
(2) There are not pledged notes receivable at the end of the reporting period.
(3) Top five companies with endorsement transfer but undue notes at the end of the period
Issuing company Issuing day Expiring day Amount
Hebei Leiken Agricultural
2013-5-22 2013-11-22 5,000,000.00
Machinery Co., Ltd.
Xinjiang Jinyuzhou Trading
2013-2-22 2013-8-22 4,000,000.00
Co., Ltd.
Shangdong Shuangli Vehicle
2013-3-25 2013-9-25 3,000,000.00
Co., Ltd.
Changzhou Dongfeng
Agricultural Machinery Group 2013-3-12 2013-9-11 3,000,000.00
Co., Ltd.
Changzhou Dongfeng
Agricultural Machinery Group 2013-3-13 2013-9-13 3,000,000.00
Co., Ltd.
Total 18,000,000.00
3. Accounts receivable
(1) Accounts receivable classified by type
Closing amount Opening amount
Book balance Bad debt provision Book balance
Type
Propo Propor
Amount rtion Amount Proportion (%) Amount tion
(%) (%)
Accounts
receivable
with
significant
single amounts 16,131,946.05 2.22 16,100,566.00 99.81 16,131,946.05 3.10 16,100,566.00 99.81
and
withdrawal of
bad debt
provision
Accounts
receivable
with bad debt
-- -- -- --
provision
withdrawn
according to
56
2013 Semi-annual Report of Changchai Company, Limited
portfolio
Account ages 710,670,359.08 97.75 205,694,590.13 28.94 504,703,603.94 96.86 205,526,705.11 40.72
Accounts
receivables
with
insignificant
single amounts 233,100.00 0.03 233,100.00 100.00 233,100.00 0.04 233,100.00 100.00
and
withdrawal of
bad debt
provision
Total 727,035,405.13 100 222,028,256.13 30.54 521,068,649.99 100 221,860,371.11 42.58
Explanation about the type of accounts receivables
Accounts receivable with significant single amounts and individual withdrawal of bad debt provision
√ Applicable □ Non-applicable
Unit: Yuan
Withdrawal
Accounts recievable Book balance Bad debt provision Withdrawal reason
proportion（%）
Customer 1 1,902,326.58 1,902,326.58 100% Hard to withdraw because of long aging
Customer 2 6,215,662.64 6,184,282.59 99.5% Hard to withdraw because of long aging
Customer 3 5,429,151.00 5,429,151.00 100% Hard to withdraw because of long aging
Customer 4 2,584,805.83 2,584,805.83 100% Hard to withdraw because of long aging
Total 16,131,946.05 16,100,566.00 -- --
In the portfolio, bad debt provision was withdrawn in the way of aging analysis
√ Applicable □ Non-applicable
Unit: Yuan
Ending amount Opening amount
Book balance Book balance
Aging
Amount Proportion Bad debt provision Amount Proportion Bad debt provision
(%) (%)
Within 1 year
Among which： -- -- -- -- -- --
Subtotal within 1
510,008,628.78 71.76% 11,058,810.67 298,767,375.88 59.2% 5,006,347.56
year
1-2 years 3,105,597.36 0.44% 184,632.39 3,001,691.27 0.59% 150,084.60
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2013 Semi-annual Report of Changchai Company, Limited
2-3 years 998,569.79 0.14% 151,036.46 1,070,243.00 0.21% 160,536.46
Above 3 years 196,557,563.15 27.66% 194,300,110.61 201,864,293.79 40% 200,209,736.49
3-4 years 3,105,689.41 0.44% 950,013.56 2,224,801.89 0.44% 667,440.59
4-5 years 256,479.32 0.04% 154,702.63 242,989.99 0.05% 145,793.99
Over 5 years 193,195,394.42 27.18% 193,195,394.42 199,396,501.91 39.51% 199,396,501.91
Total 710,670,359.08 -- 205,694,590.13 504,703,603.94 -- 205,526,705.11
Among the group, receivables for which bad-debt provisions are made with the balance percentage method
□ Applicable √ Non-applicable
Among the group, receivables for which bad-debt provisions are made with other methods
□ Applicable √ Non-applicable
Receivables with small individual amount and with drawing bad-debt provision
√ Applicable □ Non-applicable
Unit: Yuan
Withdrawal proportion
Accounts receivable Book balance Bad debt provision Withdrawal reason
（%）
Mengcheng Xingnong
Hard to withdraw
Agricultural Machinery 233,100.00 233,100.00 100%
because of long aging
Company
Total 233,100.00 233,100.00 -- --
(2) Top five entities of receivables
Relationship Ratio to the
Name of entity with the Amount Useful life total accounts
Company receivable (%)
Burma Good Brothers Co.,
Customer 62,596,931.09 Within 1 year 8.61
Ltd.
Dongfeng Motor Group Co.,
Customer 51,328,411.21 Within 1 year 7.06
Ltd.
Changzhou Dongfeng
Agricultural Machinery Group Customer 39,993,586.18 Within 1 year 5.50
Co., Ltd.
Shandong Wuzheng (Group)
Customer 26,687,618.85 Within 1 year 3.67
Co., Ltd.
Guangdong Foudy
Customer 25,286,308.81 Within 1 year 3.48
Automobile Co., Ltd.
Total 205,892,856.14 28.32
4. Other accounts receivable
(1) Other accounts receivable classified by type
58
2013 Semi-annual Report of Changchai Company, Limited
Ending amount Opening amount
Book balance Bad debt provision Book balance
Type
Propor
Proporti Amou
Amount Proportion (%) Amount tion
on (%) nt
(%)
Other
accounts
receivable
with
significant
single 4,353,188.02 7.63 4,353,188.02 100 4,353,188.02 9.48 4,353,188.02 100
amounts and
individual
withdrawal
of bad debt
provision
Other
accounts
receivable
with bad
debt -- -- -- --
provision
withdrawn
according to
portfolio
Aging
50,855,717.24 89.09 25,272,316.85 49.69 39,688,167.07 86.43 26,795,424.98 67.51
portfolio
Other
accounts
receivables
with
insignificant
1,876,501.77 3.29 1,876,501.77 100 1,876,501.77 4.09 1,876,501.77 100
single
amounts and
withdrawal
of bad debt
provision
Total 57,085,407.03 100.00 31,502,006.64 55.18 45,917,856.86 100.00 33,025,114.77 71.92
Explanation about the type of other accounts receivable
Other accounts receivable with significant single amount and individual withdrawal of bad debt provision at the
end of reporting period
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2013 Semi-annual Report of Changchai Company, Limited
√ Applicable □ Non-applicable
Unit: Yuan
Other accounts Withdrawal proportion
Book balance Amount of bad debt Reason
receivable （%）
Changchai Group Import
2,853,188.02 2,853,188.02 100% Hard to withdraw
& Export Company
Other customer 1,500,000.00 1,500,000.00 100% Hard to withdraw
Total 4,353,188.02 4,353,188.02 -- --
In the portfolio, bad debt provision was withdrawn in the way of aging analysis
√ Applicable □ Non-applicable
Unit: Yuan
Ending amount Opening amount
Book balance Book balance
Aging
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Within 1 year
Among which：
Subtotal within 1 year 21,228,227.73 41.74% 490,492.51 8,178,996.22 20.61% 163,579.93
1-2 years 2,034,931.66 4% 110,563.85 2,216,815.55 5.59% 110,840.79
2-3 years 1,654,340.96 3.25% 250,165.85 1,518,516.94 3.83% 227,777.55
Above 3 years 25,938,216.89 51% 24,421,094.64 27,773,838.36 69.97% 26,293,226.71
3-4 years 2,105,309.39 4.14% 655,469.10 2,077,456.65 5.23% 623,237.00
4-5 years 172,694.32 0.34% 105,412.36 65,980.00 0.17% 39,588.00
Over 5 years 23,660,213.18 46.52% 23,660,213.18 25,630,401.71 64.57% 25,630,401.71
Total 50,855,717.24 -- 25,272,316.85 39,688,167.07 -- 26,795,424.98
Among the group, receivables for which bad-debt provisions are made with the balance percentage method
□ Applicable √ Non-applicable
Among the group, receivables for which bad-debt provisions are made with other methods
□ Applicable √ Non-applicable
Receivables with small individual amount and with drawing bad-debt provision
√ Applicable □ Non-applicable
Unit: Yuan
Other accounts Withdrawal proportion
Book balance Bad debt provision Withdrawal reason
receivable （%）
Jiehua Electrical (Anhui)
377,033.06 377,033.06 100% Hard to withdraw
Co., Ltd.
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2013 Semi-annual Report of Changchai Company, Limited
Wuxi Fuel Tank Factory 205,095.61 205,095.61 100% Hard to withdraw
Other 1,294,373.10 1,294,373.10 100% Hard to withdraw
Total 1,876,501.77 1,876,501.77 -- --
(2) Top five entities of other receivables
Unit: Yuan
Relationship with the Ratio to the total other
Name of entity Amount Useful life
Company accounts receivable (%)
Huachi Machinery Co.,
Customer 9,000,000.00 Within one year 15.77
Ltd.
Xuzhou Huadong
Customer 6,000,000.00 Within one year 10.51
Casting General Factory
Changzhou Compressor
Customer 2,940,000.00 Over 5 years 5.15
Co., Ltd.
Import and Export
Company of Changchai Customer 2,853,188.02 Over 5 years 5.00
Group
Changzhou Xingsheng
Property Management Customer 1,932,190.85 Within two years 3.38
Co., Ltd.
Total -- 22,725,378.87 -- 39.81
5. Prepayment in advance
(1) Accounts receivable listed according to aging analysis
Ending amount Opening amount
Aging
Amount Proportion （%） Amount
Within 1 year 13,784,909.97 84.26 12,720,121.46 84.17
1-2 years 1,628,361.03 9.95 1,466,388.10 9.70
2-3 years 59,479.21 0.36 38,484.36 0.25
Above 3 years
3-4 years
4-5 years 886,767.86 5.42 886,767.86 5.88
Total 16,359,518.07 100.00 15,111,761.78 100.00
(2) Top five entities of prepayment in advance
Relationship
Reason for
Name of entity with the Amount Useful life
unsettlement
Company
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2013 Semi-annual Report of Changchai Company, Limited
Xuzhou East China Casting Within one Normal settlement
Supplier 2,425,516.32
General Factory year period
Changzhou Yangtze River Within one Normal settlement
Supplier 2,076,105.13
Molder Material Factory year period
Changzhou Constructional Within one Normal settlement
Supplier 1,600,000.00
Engineer Co., Ltd. year period
The 3rd Design and Research
Within two Normal settlement
Institution of Engineering Supplier 1,380,000.00
years period
Industry
Changzhou Wujin Construction Within two Normal settlement
Supplier 1,470,000.00
Engineering Corp. years period
Total 8,951,621.45
(3) Among the payment in advance of this period, there existed no debts of shareholders with over 5% of
shares.
6. Inventory
(1) Classification of inventory
Ending amount Opening amount
Items Provision for Provision for
Book balance Book value Book balance Book value
falling price falling price
Raw material 114,530,001.5
113,770,953.13 3,485,525.80 110,285,427.33
118,015,527.36 3,485,525.80 6
Consigned
processing 4,902,993.78 4,902,993.78
materials 5,329,694.65 5,329,694.65
Goods in 121,007,792.6
141,258,903.90 20,251,111.29
process 113,647,296.12 20,251,111.29 93,396,184.83 1
Finished 148,801,408.5 214,895,450.5
219,039,973.28 4,144,522.77
products 152,945,931.32 4,144,522.77 5 1
Low costs and
short lives 1,179,640.14 1,179,640.14
products 698,480.36 698,480.36
Total 362,755,769.9 452,271,304.3
480,152,464.23 27,881,159.86
390,636,929.81 27,881,159.86 5 7
(2) Provision for falling price of inventory
Category Opening book Provided in Decrease this year Closing book balance
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2013 Semi-annual Report of Changchai Company, Limited
balance current period Written
Written off
back
Raw material 3,485,525.80 3,485,525.80
Finished
4,144,522.77 4,144,522.77
products
Goods in
20,251,111.29 20,251,111.29
process
Total 27,881,159.86 27,881,159.86
(3) Situation of provision for falling price of inventory
Basis of withdrawing Reason for switching back Ratio of amount switched back
Items provision for falling price of provision for falling price of in current period to Closing
inventory inventory in current period balance of such inventory (%)
Book cost exceeds net
Raw material
realizable value
Book cost is more than net
Finished products
realizable value
Book cost is more than net
Goods in process
realizable value
(4) There are not capitalized amounts in inventory closing balance.
(5) There is not pledge or other limited rights in inventory closing balance.
7. Available-for-sale financial assets
Items Closing fair value Opening fair value
Available-for-sale equity instrument 368,744,500.00 486,503,000.00
Total 368,744,500.00 486,503,000.00
Salable equinity instruments stated above are Futian Automobile Stock and Ninglu High Speed Stock. Fair value at
the period-end was the closing price of the exchange stock.
8. Investment in cooperative enterprises and joint ventures
Investee Proportion of Proportion of General assets General Net assets in Revenue in this Net profit in
shareholding voting (%) in period-end liabilities in period-end period this period
(%) period-end
I. cooperative enterprises
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2013 Semi-annual Report of Changchai Company, Limited
There is not cooperative
enterprise
II. joint ventures
Changzhou Fushi
Changcai Lobine
33 33 92,169,154.9633,993,145.22 58,176,009.74 105,155,341.76 1,737,695.77
Gasoline Engine Co.,
Ltd.
Beijing Qinghua Xingye
Investment and 25 25 2,187,675.42 2,034,852.68 152,822.74
Management Co., Ltd.
9.Long-term equity investment
(1) Details for long-term equity investment
Accounting Initial investment
Investee Opening balance Increase/decrease Closing balance
method cost
Changzhou Fuji
Changchai Robin Equity
12,294,546.00 18,618,655.83 573,439.60 19,192,095.43
Gasoline Engine Co., method
Ltd.
Beijing Tsinghua
Equity
Industrial Investment 2,500,000.00
method
Management Co., Ltd.
Cost
Jiangsu Bank 38,000,000.00 38,000,000.00 38,000,000.00
method
Chengdu Changwan
Cost
Diesel Engine 510,000.00
method
Markeing Corp.
Chongqing Wanzhou
Cost
Changwan Diesel 290,000.00
method
Engine Fitting Corp.
Qidong Liantong
Cost
Dynamometer Co., 7,200,000.00 7,200,000.00 7,200,000.00
method
Ltd.
Cost
Others 410,000.00
method
Total 61,204,546.00 63,818,655.83 573,439.60 64,392,095.43
Continue
Share Voting Explanation for Impairment Withdrawn Cash bonus in
Investee
holding percentage indifferences between provision impairment the reporting
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2013 Semi-annual Report of Changchai Company, Limited
percentage in investee the share holding provision in period
in investee percentage and voting the
percentage in investee reporting
period
Changzhou Fuji
Changchai Robin
33 33
Gasoline Engine Co.,
Ltd.
Beijing Tsinghua
Industrial Investment 25 25 44,182.50
Management Co., Ltd.
Jiangsu Bank 0.42 0.42
Chengdu Changwan
Diesel Engine 510,000.00
Markeing Corp.
Chongqing Wanzhou
Changwan Diesel 290,000.00
Engine Fitting Corp.
Qidong Liantong
4 4
Dynamometer Co., Ltd.
Others 410,000.00
Total 1,254,182.50
Notes: ① Beijing Tsinghua Industrial Investment Management Co., Ltd. actually quit line production and
withdrawn impairment to 0. ② Others are RMB 20,000 of Changzhou Economic Technology Development Co.,
Ltd., RMB 100,000 of Changzhou Tractor Co., Ltd., RMB 200,000 of Changzhou Economic Committee Industrial
Fund Fraternity, RMB 90,000 of Beijing Engineering Agricultural Machinery Co., Ltd. These Four companies
above are fully withdrawn with impairment provision because of difficulty of withdrawal.
10. Investment real estate
Investment real estate measured at cost
Opening book Increased this Decrease this Closing book
Items
balance year year balance
I. Total original book value 87,632,571.14 87,632,571.14
Houses & buildings 87,632,571.14 87,632,571.14
II. Accumulated depreciation 23,726,518.71 1,104,170.40 24,830,689.11
Houses & buildings 23,726,518.71 1,104,170.40 24,830,689.11
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2013 Semi-annual Report of Changchai Company, Limited
III. Total net book value of
63,906,052.43 62,801,882.03
investment real estate
Houses & buildings 63,906,052.43 62,801,882.03
V. Accumulated amount of
impairment of investment real
estate
Houses & buildings
VI. Total book value of investment
63,906,052.43 62,801,882.03
real estate
Houses & buildings 63,906,052.43 62,801,882.03
Depreciation of this period was RMB 1,104,170.40.
There is not investment real estate with changing measurement model and investment real estate without certificate
of title.
11. Fixed assets
Opening book Closing book
Items Increased this year Decreased this year
balance balance
I. Total original book
amount： 1,108,970,940.80 33,248,640.36 2,517,500.03 1,139,702,081.13
Of which: Houses & 5,128,370.94
buildings 398,034,262.63 308,268.32 402,854,365.25
Machinery 27,195,885.19
equipment 653,009,989.34 1,449,114.50 678,756,760.03
Vehicles 24,629,526.41 625,741.03 200,102.37 25,055,165.07
Other facilities 33,297,162.42 298,643.20 560,014.84 33,035,790.78
Increase
Withdrawal in
in this
this period
period
II. Accumulated
depreciation 531,996,331.04 38,061,920.31 7,049,556.99 563,008,694.36
Of which: Houses &
buildings 167,803,503.45 7,620,450.30 3,663,460.23 171,760,493.52
Machinery
equipment 322,378,991.27 27,706,495.22 2,901,519.73 347,183,966.76
Vehicles 16,046,623.49 1,142,633.42 294,453.20 16,894,803.71
Other facilities 25,767,212.83 1,592,341.37 190,123.83 27,169,430.37
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2013 Semi-annual Report of Changchai Company, Limited
III. Total net book
576,974,609.76
value 576,693,386.77
Of which: Houses &
230,230,759.18
buildings 231,093,871.73
Machinery
330,630,998.07
equipment 331,572,793.27
Vehicles 8,582,902.92 8,160,361.36
Other facilities 7,529,949.59 5,866,360.41
IV. Total provision for
10,929,647.57 10,929,647.57
impairment loss
Of which: Houses &
7,633,328.53 7,633,328.53
buildings
Machinery
3,296,319.04 3,296,319.04
equipment
Other facilities
IV. Total provision for
impairment loss
V. Total book value 566,044,962.19 565,763,739.20
Of which: Houses &
222,597,430.65
buildings 223,460,543.20
Machinery
327,334,679.03
equipment 328,276,474.23
Vehicles 8,582,902.92 8,160,361.36
Other facilities 7,529,949.59 5,866,360.41
In this period, the depreciation amount reached RMB 38,061,920.31; the original price of construction in progress
which was transferred into fixed assets was RMB 27,591,340.17.
12. Construction in progress
(1) Program
Ending amount Opening amount
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Experimental
workshop of 22,910,683.71 22,910,683.71 18,070,869.46 18,070,869.46
technology center
Renovation of
10,985,965.02 10,985,965.02 16,209,429.65 16,209,429.65
casting
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2013 Semi-annual Report of Changchai Company, Limited
Expansion
capacity of
2,403,735.90 2,403,735.90 2,610,644.10 2,610,644.10
multi-cylinder
(The 2nd Period)
Non-road electric
336,503.39 336,503.39 336,503.39 336,503.39
generator Project
Base of land in
3,234,456.96 3,234,456.96 3,247,647.31 3,247,647.31
Hehai Road
Major project 2,562,614.53 2,562,614.53
Power substation
6,829,318.95 6,829,318.95 6,829,318.95 6,829,318.95
(facilities)
Access System
Project of
14,566,271.08 14,566,271.08 12,868,271.08 12,868,271.08
Electrical
Substation
Reform of
Cylinder Casting 6,172,900.00 6,172,900.00 5,672,900.00 5,672,900.00
Workshop
Japan Dongjiu
7,492,416.30 7,492,416.30 7,492,416.30 7,492,416.30
Molding Machine
Casting Cooling
4,382,564.09 4,382,564.09 4,382,564.09 4,382,564.09
Lines
80t/h Sand
Conditioning
7,954,126.79 7,954,126.79 7,439,596.88 7,439,596.88
System of Clay
Sand
Production Line of
5,529,914.45 5,529,914.45
Crankcase Guard
Medium-frequency
Induce Melt 13,890,832.46 13,890,832.46 13,890,832.46 13,890,832.46
Electric Furnace
Equipment to be
installed and
18,291,258.95 18,291,258.95 14,995,430.21 14,995,430.21
payment for
projects
Total 122,013,648.13 122,013,648.13 119,576,338.33 119,576,338.33
(2) Change in main project of construction in progress
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2013 Semi-annual Report of Changchai Company, Limited
Ratio of
Other
Increased this Transferring into capitalization Resource of
Name of projects Opening amount decrea Ending amount
year fixed assets of interest of funds
se
current period
(%)
Experimental
workshop of 18,070,869.46 4,839,814.25 Self-financing 22,910,683.71
technology center
Renovation of casting 16,209,429.65 10,592,822.93 15,816,287.56 Self-financing 10,985,965.02
Expansion capacity of
multi-cylinder (The 2,610,644.10 206,908.20 Self-financing 2,403,735.90
nd
2 Period)
Non-road electric
336,503.39 Self-financing 336,503.39
generator Project
Base of land in Hehai
3,247,647.31 1,591,594.43 1,604,784.78 Self-financing 3,234,456.96
Road
Major project 2,562,614.53 Self-financing 2,562,614.53
Power substation
6,829,318.95 Self-financing 6,829,318.95
(facilities)
Access System
Project of Electrical 12,868,271.08 1,698,000.00 Self-financing 14,566,271.08
Substation
Reform of Cylinder
5,672,900.00 500,000.00 Self-financing 6,172,900.00
Casting Workshop
Japan Dongjiu
7,492,416.30 Self-financing 7,492,416.30
Molding Machine
Casting Cooling Lines 4,382,564.09 Self-financing 4,382,564.09
80t/h Sand
Conditioning System 7,439,596.88 514,529.91 Self-financing 7,954,126.79
of Clay Sand
Production Line of
5,529,914.45 4,700.85 5,534,615.30 Self-financing 0.00
Crankcase Guard
Medium-frequency
Induce Melt Electric 13,890,832.46 Self-financing 13,890,832.46
Furnace
Total 104,580,908.12 22,304,076.90 23,162,595.84 103,722,389.18
(3) Among the Closing balance of the construction in progress, there is no situation that its net realizable
value is lower than its book value, therefore, the Company did not made the provision for impairment.
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2013 Semi-annual Report of Changchai Company, Limited
(4) At the end of reporting period, there is no situation that the construction in progress was used for
mortgage guarantee.
13. Intangible assets
(1) Intangible assets
Opening book Increased this Closing book
Items Decreased this year
balance year balance
I. Total book original value 117,212,266.30 538,268.76 117,750,535.06
Land use right 117,212,266.30 117,212,266.30
II. Accumulative
31,148,654.36 1,166,274.51 32,314,928.87
amortization
Land use right 31,148,654.36 1,131,733.20 32,280,387.56
III. Total net book value 86,063,611.94 -628,005.75 85,435,606.19
Land use right 86,063,611.94 -1,131,733.20 84,931,878.74
IV. Total impairment
provision
Land use right
V. Total of book value of
86,063,611.94 -628,005.75 85,435,606.19
intangible assets
Land use right 86,063,611.94 -1,131,733.20 84,931,878.74
Amount of amortization in this period was RMB 1,166,274.51.
(2) There was not net realizable value lower than book value in period-end balance, therefore, the Company made
not impairment provision.
14. Deferred income tax assets/deferred income tax liabilities
(1) Recognized deferred income tax assets and deferred income liabilities
Item Ending amount Opening amount
Deferred income tax assets
Provision for assets impairment 752,200.00 752,200.00
Subtotal 752,200.00 752,200.00
Deferred income tax liabilities
Change in fair value of available-for-sale financial assets
49,030,500.00 66,694,275.00
measured into capital reserve
Subtotal 49,030,500.00 66,694,275.00
(2) Details about unrecognized deferred income tax assets
Item Ending amount Opening amount
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2013 Semi-annual Report of Changchai Company, Limited
Provision for bad debts 249,870,819.21 249,870,819.21
Inventory falling price reserve 27,881,159.86 27,881,159.86
Total 277,751,979.07 277,751,979.07
(3) Temporary discrepancies in line with assets or liabilities arising temporary discrepancies
Item Amount of temporary discrepancies
Preparation for impairment of assets 5,014,666.67
Change of fair value of salable financial assets included
326,870,000.00
in capital reserve
Total 331,884,666.67
15. Details about provision for assets impairment
Opening book Increase in the Decrease in the reporting period Closing book
Item
balance reporting period Reversal Written off balance
Bad debt provision 254,885,485.88 5,831,170.97 7,186,394.08 253,530,262.77
Provision for falling
price of inventory 27,881,159.86 27,881,159.86
Provision for impairment
of long-term equity
investment 1,254,182.50 1,254,182.50
Provision for impairment
of fixed assets 10,929,647.57 10,929,647.57
Provision for impairment
of consigned loan 14,000,000.00 14,000,000.00
Total 308,950,475.81 5,831,170.97 7,186,394.08 307,595,252.70
16. Short-term borrowings
(1) Varieties of short-term borrowings
Item Ending amount Opening amount
Guaranteed borrowings 20,000,000.00 20,000,000.00
Credit borrowings 10,000,000.00
Total 30,000,000.00 20,000,000.00
(2) Short-term borrowings that have been due up until the period-end but have not been paid off.
(3) Among guaranteed borrowings at the end of reporting period, RMB 20,000,000.00 loans of Changwan
Company was guaranteed by Chongqing Wanzhou State-owned Assets Guarantee Co., Ltd.
17、notes payable
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2013 Semi-annual Report of Changchai Company, Limited
Item Ending amount Opening amount
Bank acceptance 390,883,160.00 346,039,002.00
Total 390,883,160.00 346,039,002.00
Amounts will be paid in next accounting period accounting to RMB 390,883,160.00.
18. Accounts payable
(1) Classification in line with nature of accounts payable
Item Ending amount Opening amount
Operating accounts payable 574,684,746.33 587,143,773.47
Accounts payable for engineering 10,403,004.85 12,312,026.53
Total 585,087,751.18 599,455,800.00
(2) Among the accounts receivable, there existed no item belonging to shareholders' companies or related
parties with over 5% （including 5%）of shares.
(3) Among closing balance, there existed no large-amount accounts receivables with age of accounts being
over 1 year.
19. Advance from customers
Item Ending amount Opening amount
Advance from customers 68,530,551.82 31,650,567.34
Total 68,530,551.82 31,650,567.34
There was not big amount of advance over one year among closing balance.
Among advance at the period-end, there existed not amount of shareholder or party-related holding over 5% (5%
included) of voting shares.
20. Payroll payable
Opening book Increase in the Decrease in the Closing book
Item
balance reporting period reporting period balance
I. Wages, bonuses, allowances
39,257,926.28 100,069,578.51 117,670,374.27 21,657,130.52
and subsidies to employees
II. Welfare expense for
2,340,694.80 2,340,694.80
employees
III. Expenditure of labor union
5,468,092.27 1,920,834.44 2,655,819.74 4,733,106.97
and worker education
IV. Social insurances 27,132,358.86 27,132,358.86
Of which: endowment insurance 15,977,594.73 15,977,594.73
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2013 Semi-annual Report of Changchai Company, Limited
Basic medical insurance 7,959,947.60 7,959,947.60
Unemployment insurance 1,597,928.29 1,597,928.29
Work injury insurance 958,053.91 958,053.91
Maternity insurance 638,834.33 638,834.33
V. Housing accumulation funds 7,236,316.00 7,236,316.00
VI. Compensation for employee
dismissal
Total 44,726,018.55 138,699,782.61 157,035,563.67 26,390,237.49
Among payroll payable, there was not defaulted payroll.
Salaries, bonuses, allowances and subsidies among payroll payable at period-end were mainly withdrawing
bonuses.
21. Taxes and fares payable
Item Ending amount Opening amount
VAT -38,059,970.39 -64,814,786.45
Tax for municipal maintenance and
830,395.63
construction
Business income tax 4,410,364.27 3,606,911.79
Housing property tax 345,780.98
Personal income tax 87,820.95 419,125.94
Educational surcharges 82.73
Synthesis fee 1,742,805.82 1,875,717.67
Total -31,818,979.35 -57,736,771.71
22. Dividend payables
Reason for being unpaid for more than 1
Name of entity Ending amount Opening amount
year
Dividend payables to
common 17,277,538.12 3,243,179.97 Not yet drawn
shareholders
Dividend payables to
minority 648,253.86 648,253.86 Not yet drawn
shareholders
Total 17,925,791.98 3,891,433.83
Dividends payable in this period were RMB 14,034,358.15, which were ordinary stock dividends
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2013 Semi-annual Report of Changchai Company, Limited
of the year of 2012.
23. Other payables
(1)
Item Ending amount Opening amount
Other payables 170,178,586.47 135,442,533.37
Total 170,178,586.47 135,442,533.37
(2) Among other payables at the period-end, there were not debts owned to shareholders or parties-related
holding over 5% (5% included) of voting shares.
(3) There existed no other large amount accounts payable aging over 1 year.
(4) Other accounts payable with significant amount at the end of reporting period were mainly sales favors
and compensation for quality.
24. Other current liabilities
Item Ending amount Opening amount
Sewage charge 329,172.47
Electricity charge 2,560,127.64 2,259,989.60
Others 177,954.64 170,906.50
Total 3,067,254.75 2,430,896.10
25. Other non-current liabilities
Item Ending amount Opening amount
Government subsidies on 38,531,200.00 38,051,200.00
technological projects
Compensation for relocation for
land in Zoucun （Note）
Deferred income（Note） 24,507,526.56 24,507,526.56
Total 63,038,726.56 62,558,726.56
26. Share capital
Increase / decrease this year（＋、－）
Issuan Capitaliz
Opening amount ce of ation of Ending amount
Bonus share Others Subtotal
new public
share reserves
Total
561,374,326.00 561,374,326.00
shares
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2013 Semi-annual Report of Changchai Company, Limited
27. Capital reserve
Increase in the Decrease in the Closing amount
Item Opening amount
reporting period reporting period
Premium of capital
(Premium of share 150,705,016.81
capital)
Other capital reserves 398,245,362.44 100,094,725.00 298,150,637.44
Total 548,950,379.25 100,094,725.00 448,855,654.25
The increase of RMB100, 094,725
in the capital reserve of the reporting period was the net amount of the fair value changes of the available-for-sale f
inancial assets held by the Company (Futon Motor shares and Ninghu Expressway shares) and the relevant deferre
d income tax effect.
28. Specific reserve
Item Opening amount Increase this year Decrease this year Ending amount
Safe production expenses 4,169,087.73 4,169,087.73
Total 4,169,087.73 4,169,087.73
29. Surplus reserves
Items Opening amount Increased this year Decreased this year Ending amount
Statutory surplus reserves 269,208,059.46 269,208,059.46
Free surplus reserves 13,156,857.90 13,156,857.90
Total 282,364,917.36 282,364,917.36
30. Retained profit
Amount Withdrawal or
Item
distributed proportion
Retained profit at the end of year before adjustment 448,366,561.06
Total of retained profit at the year-begin adjustment
Retained profit at the year-begin after adjustment 448,366,561.06
Add: Net profit attributable to owners of parent company in
39,865,197.16
this period
Less: Withdrawal of statutory surplus reserves
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2013 Semi-annual Report of Changchai Company, Limited
Withdrawal of Free surplus reserves
Withdrawal of general risk provision
Dividend of ordinary shares payable 14,034,358.15
Capital transferred from dividend of ordinary shares
Retained profit at the period-end 474,197,400.07
31. Revenue and Cost of Sales
(1) Revenue and Cost of Sales
Unit: Yuan
Items Amount of this period Amount of last period
Income from main business 1,585,168,723.53 1,567,714,421.37
Income from other business 12,533,974.93 31,765,791.38
Operating cost 1,432,960,897.52 1,472,951,393.72
(2) Main business classified according to industry
Unit: Yuan
Amount of this period Amount of last period
Industry
Operating income Operating cost Operating income Operating cost
Internal-combustion engine 1,585,168,723.53 1,426,375,878.12 1,567,714,421.37 1,443,552,908.36
Total 1,585,168,723.53 1,426,375,878.12 1,567,714,421.37 1,443,552,908.36
(3) Main business classified according to products
Unit: Yuan
Amount of this period Amount of last period
Product
Operating income Operating cost Operating income Operating cost
Diesels engines 1,585,168,723.53 1,426,375,878.12 1,567,714,421.37 1,443,552,908.36
Total 1,585,168,723.53 1,426,375,878.12 1,567,714,421.37 1,443,552,908.36
(4) Main business according to regions
Unit: Yuan
Amount of this period Amount of last period
Region
Operating income Operating cost Operating income Operating cost
internal 1,462,593,976.75 1,306,940,907.31 1,477,967,285.22 1,355,563,335.61
external 122,574,746.78 119,434,970.81 89,747,136.15 87,989,572.75
Total 1,585,168,723.53 1,426,375,878.12 1,567,714,421.37 1,443,552,908.36
(5) Operating revenue of the top five clients of the Company
Unit: Yuan
Customer Main business revenue Proportion of total business revenue (%)
76
2013 Semi-annual Report of Changchai Company, Limited
Shandong Wuzheng (Group) Co., Ltd. 124,301,444.73 7.78
Changzhou Dongfeng Agricultural
Machinery Group Co., Ltd. 93,500,000.00 5.85
Burma Good Brother Co., Ltd. 78,482,289.38 4.91
Dongfeng Motor Group Co., Ltd. 58,259,932.10 3.65
Futon Lovol International Heavy
Industry Co., Ltd. Zhu Cheng Wagon
Works 41,357,771.00 2.59
Total 395,901,437.21 24.78
32. Business tax and surcharges
Items Amount of this period Amount of last period Payment standard
Business tax 116,409.53 37,500.00 Please refer to “Main tax type and rate”
Urban maintenance
98,481.85 74,609.66
and construction tax Please refer to “Main tax type and rate”
Educational surtax 62,458.75 49,864.77 Please refer to “Main tax type and rate”
Total 277,350.13 161,974.43
33. Sales expense
Item Amount of this period Amount of last period
Office expense 10,857,628.04 11,756,250.31
Payrolls 11,906,117.70 9,893,584.32
sales promotion expenses 6,957,764.02 8,024,634.94
Expense of guarantee for repair, replace and
28,862,001.22
refund 24,469,254.60
Freight 4,759,994.88 3,906,364.91
Others 857,231.99 366,210.63
Total 64,200,737.85 58,416,299.71
34. Administrative expense
Items Amount of this period Amount of last period
Office expense 14,077,661.38 8,648,601.85
Payrolls 25,736,586.38 15,549,364.36
Depreciation and amortization 7,339,689.80 7,146,280.04
Fees for R & D 9,272,181.48 4,297,310.01
Freight 3,441,772.42 2,973,641.85
Repair charge 3,297,184.88 3,058,490.63
77
2013 Semi-annual Report of Changchai Company, Limited
Tax 5,084,166.47 3,194,974.14
Other 5,847,903.34 3,273,244.36
Total 74,097,146.15 48,141,907.24
35. Financial expense
Item Amount of this period Amount of last period
Interest expenses 1,450,669.32 1,679,312.18
Less: interest income 3,935,881.76 3,410,669.32
Exchange gains or losses 1,020,229.55 695,731.91
others -6,147,810.59 -5,622,234.19
Total -7,612,793.48 -6,657,859.42
36. Investment income
(1) Breakdown of investment income
Items Amount of this period Amount of last period
Long-term equity investment income measured
573,439.60 53,526.00
with equity method
Investment income achieved during the period of
11,560,000.00 8,670,000.00
holding transactional financial assets
Investment income from disposal of
219,367.20 230,463.19
transactional financial assets
Total 12,352,806.80 8,953,989.19
（2）Long-term equity investment income measured with equity method
Invested unit Amount of this period Amount of last period Reason for change
Changzhou Fuji
Changchai Robin
573,439.60 53,526.00 Profits of this period increased
Gasoline Engine Co.,
Ltd.
Total 573,439.60 53,526.00
37. Non-operating income
（1）
Amount recorded
Amount in the Amount in the into non-recurring
Item
reporting period previous period gains and losses of
this period
Total gains from disposal of non-current 286,693.11 3,055,944.89 286,693.11
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2013 Semi-annual Report of Changchai Company, Limited
assets
Including: gains from disposal of fixed
3,055,944.89
assets 286,693.11 286,693.11
gains from disposal of intangible
assets
Insurance compensation
Penalty income
Government subsidies 790,000.00 1,600,000.00 790,000.00
Gains from disposal of current assets 481,693.04 2,208,378.00 481,693.04
Accepted donations
Payables that need not to be paid
Others 885,893.15 245,617.95 885,893.15
Total 2,444,279.30 7,109,940.84 2,444,279.30
(2) Particulars about government subsidies
Item Amount in the reporting Amount in the previous
period period
Special funds for the development of five main
1,600,000.00
industries in Changzhou
Special subsidies for industrial economy steady growth
780,000.00
and promote transformation
Other awards and subsidies 10,000.00
Total 790,000.00 1,600,000.00
38. Non-operating expenses
Item Amount recorded
Amount in the Amount in the into non-recurring
reporting period previous period gains and losses of
this period
Total losses from disposal of non-current
17,207.16 601,158.15 17,207.16
assets
Including: loss from disposal of fixed assets 17,207.16 601,158.15 17,207.16
loss from disposal of intangible assets
Donation
Penalty expense
Expense on flood prevention and security 1,598,791.19 1,585,294.37 1,598,791.19
79
2013 Semi-annual Report of Changchai Company, Limited
Loss from disposal of current assets 113.50 11,023.45 113.50
Others 1,093,118.40 581,742.83 1,093,118.40
Total 2,709,230.25 2,779,218.80 2,709,230.25
39 Income tax expense
Item Amount in the reporting Amount in the previous
period period
Income tax calculated according to the Law of Tax and
7,353,641.41 5,506,929.91
relevant regulations
Adjusting deferred income tax
Total 7,353,641.41 5,506,929.91
40. Calculation process of basic EPS and diluted EPS
The calculation process of basic EPS and diluted EPS of the company from Jan to June is as follow:
Item Amount
Calculation of basic EPS and diluted EPS
(Ⅰ) Numerator
Net profit after tax 39,868,797.84
Adjustment: influence of preference share dividends and other tools
Gains/losses attributable to ordinary share holders of parent company in
39,865,197.16
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
39,865,197.16
the calculation of diluted EPS
(Ⅱ) Denominator
Weighted average number of common shares issued in the reporting
561,374,326.00
period in the calculation of basic EPS
Add: weighted average number of common shares converted from all
delusion potential common shares
Weighted average number of common shares issued in the reporting
561,374,326.00
period in the calculation of diluted EPS
(Ⅲ) EPS
Basic EPS
80
2013 Semi-annual Report of Changchai Company, Limited
Net profit attributable to common share holders of the Company 0.07
Net profit attributable to common share holders of the Company after
0.07
deducting non-recurring gains/losses
Diluted EPS
Net profit attributable to common share holders of the Company 0.07
Net profit attributable to common share holders of the Company after 0.07
deducting non-recurring gains/losses
41. Other comprehensive incomes
Item Amount in the reporting Amount in the previous
period period
1. Gain/loss from the financial assets available for sale -117,758,500.00 96,824,000.00
Minus: income tax impact caused by the financial assets available for
-17,663,775.00 14,523,600.00
sale
Net amount transferred into profit and loss in the current period
that recognized into other comprehensive income in prior period
Subtotal -100,094,725.00 82,300,400.00
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. Converted amount of foreign currency financial statements -45,383.12 -1,481.92
Less: Net value of disposal of oversea operations that recognized into
current profit and loss
Subtotal -45,383.12 -1,481.92
4. 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 -100,140,108.12 82,298,918.08
The gain/loss from financial assets available for sale in the reporting period came from the income from the fair
value changes of the financial assets available-for-sale—shares of Futon Automobile and Ninghu Expressway—
81
2013 Semi-annual Report of Changchai Company, Limited
held by the parent company.
42. Notes to items in the Cash Flow Statement
(1) Other cash received related to operating activities
The amount of this period is RMB 24,647,890.64, the items are as follow：
Item Amount
Subsidies and grants 790,000.00
Cash received from other activities 18,606,187.52
Interest income 5,251,703.12
Total 24,647,890.64
(2) Other cash paid related to operating activities
The amount of this period is RMB 42,945,364.854, the items are as follow：
Item Amount
Various kinds of office expenses 11,231,026.05
Expense on transportation and repair 10,987,497.27
Expenses on promotion and guarantee for repair,
9,819,765.24
replacement and refund
Other expenses 9,463,315.81
Cash paid for other activities 1,443,760.48
Total 42,945,364.85
43. Supplementary information to the Cash Flow Statement
（1）.Supplementary information to the Cash Flow Statement
Supplementary information Amount in the reporting Amount in the previous
period period
1. Reconciliation of net profit to net cash flows
generated from operating activities
Net profit 39,868,797.84 30,021,528.08
Add: Provision for impairment of assets -1,355,223.11 4,222,750.31
Depreciation of fixed assets, of oil-gas assets, of
productive biological assets 38,061,920.31 28,962,939.75
Amortization of intangible assets 1,166,274.51 1,131,733.20
Amortization of long-term deferred expense
Losses on disposal of property, plant and equipment,
intangible assets and other
long-term assets (gains: negative) -269,485.95 -2,454,786.74
82
2013 Semi-annual Report of Changchai Company, Limited
Loss on retirement of fixed assets (gains: negative)
Losses on change in fair value (“-” means income)
Financial cost (gains: negative) 1,450,669.32 1,018,671.35
Investment loss (gains: negative) -12,352,806.80 -8,900,463.19
Decrease in deferred income tax assets (gains: negative)
Increase in deferred income tax liabilities (decrease:
negative) -17,663,775.00 14,523,600.00
Decrease in inventory (gains: negative) 89,515,534.42 83,599,474.53
Decrease in accounts receivable from operating
activities (gains: negative) -154,197,959.83 -54,264,989.36
Increase in payables from operating activities (decrease:
negative) 102,447,369.87 110,008,700.70
Other
Net cash flows generated from operating activities 86,671,315.58 207,869,158.63
II. Investing and financing activities that do not
involving
cash receipts and payment:
Conversion of debt into capital
Convertible bond due within one year
Fixed assets financed by finance leases
III. Net increase in cash and cash equivalents
Closing balance of cash 672,143,419.61 559,067,112.03
Less: Opening balance of cash 637,004,823.27 470,293,043.20
Closing balance of cash equivalents
More: Closing balance of cash equivalents
Less: Opening balance of cash equivalents 35,138,596.34 88,774,068.83
（2）Cash and cash equivalents
Item Closing amount Opening amount
I. Cash 672,143,419.61 637,004,823.27
Including: Cash on hand 389,316.31 415,168.06
Bank deposit on demand 671,754,103.30 636,589,655.21
Other monetary funds on demand
II. Cash equivalent
Including: Bond investment due in three months
III. Closing balance of cash and cash equivalents 672,143,419.61 637,004,823.27
83
2013 Semi-annual Report of Changchai Company, Limited
VIII. Related parties and related transactions
1. Information about the parent company of the Company
Unit: Yuan
Proportion
of shares
Voting
of the Ultimate
Name of Associated Legal rights ratio Code of
Type of Registered Business Registered Company controller
parent relationshi representat of parent organizati
enterprise place nature capital held by of the
company p ive company on
parent Company
(%)
company
(%)
State-owne
d Assets
Supervisio
n and
Administra
Controllin Official
tion
g organ as a Changzho Jiang 01411025-
Commissi 30.02% 30.02%
shareholde legal u Huaping 1
on of
r person
Changzho
u
Municipal
Governme
nt
2. Particulars about subsidiaries of the Company
Unit: Yuan
Full name Legal
Type of Type of Registered Business Registered Shareholdin Voting right Code of
of representati
subsidiary enterprise place nature capital g ratio (%) ratio (%) organization
subsidiary ve
Changchai
Wanzhou Limited
Controlled Chongqing
Diesel Liability Yin Lihou Industry 3,500 60% 60% 20793370-5
subsidiary City
Engine Co., Company
Ltd.
Changzhou
Changchai
Limited
Benniu Controlled Changzhou Cao
Liability Industry 5,506.30 84.66% 84.66% 25083232-8
Diesel subsidiary City Weiping
Company
Engine
Fittings Co.,
84
2013 Semi-annual Report of Changchai Company, Limited
Ltd.
Changzhou
Limited
Housheng Controlled Changzhou Shi
Liability Service 3,000 100% 100% 55027547-1
Investment subsidiary City Jianchun
Company
Co., Ltd.
Chansun Limited
Controlled Shi USD 20 ten
Internationa Liability Singapore Service 100% 100%
subsidiary Jianchun thousand
l (Pte.) Ltd. Company
3. Joint ventures and associated enterprises of the Company
Unit： RMB Yuan
Percentage Voting
Legal of holding percentage
Name of Type of Registration Nature of Registered Relationshi Organizatio
representati shares of of the
investee enterprise place business capital p n code
ve the Company in
Company investee
I. Joint ventures
II. Associated enterprises
Changzhou
Fuji
Changchai Limited
Shijing US $4.5 Associated
Robin liability Changzhou Industry 33% 33% 71497547-5
Qijie million enterprise
Diesel company
Engine Co.,
Ltd.
Beijing
Tsinghua
Limited
Industrial Chen RMB10 Associated
liability Beijing Service 25% 25% 700233059
Investment Zhangwu million enterprise
company
Managemen
t Co., Ltd.
IX. Contingency
1. Contingent liabilities and its financial effect arising from unsettled litigation or arbitration
During the reporting period, the Company’s litigations that lasted from the previous period to the
reporting period were as follows:
Date of Name of the litigation and Involved amount
Name of the accused unit Remark
acceptance arbitration institution (RMB 0’000)
Shandong Hongli Group Co., Ltd. 2001.6.27 Changzhou Intermediate 1,436.00 In the process of
People’s Court liquidation and
85
2013 Semi-annual Report of Changchai Company, Limited
bankruptcy
Total 1,436.00
Explanation on the case:
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’ Court in 2001 and sued for compulsory execution in April, 2002. Currently,
the defendant has started the bankruptcy procedure.
X. Commitments
The Company had no commitments to be disclosed.
XI. Other significant events
1. Assets and liabilities measured by the fair value
Unit: RMB Yuan
Gain/loss from Accumulative Impairment
Item Opening amount change in fair value change in fair value provision for this Closing amount
in this year recorded into equity year
Financial assets
Available-for-sale
486,503,000.00 -117,758,500.00 368,744,500.00
financial assets
Subtotal of financial
486,503,000.00 -117,758,500.00 368,744,500.00
assets
Total of the above
486,503,000.00 -117,758,500.00 368,744,500.00
mentioned
Financial liabilities 0.00 0.00
2. Financial assets and liabilities of foreign currency
Unit: RMB Yuan
Gain/loss from Accumulative Impairment
Item Opening amount change in fair value change in fair value provision for this Closing amount
in this year recorded into equity year
Financial assets
Loans and accounts
61,002,155.81 60,537,230.00
receivable
Subtotal of financial
61,002,155.81 60,537,230.00
assets
Financial liabilities 0.00 0.00
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2013 Semi-annual Report of Changchai Company, Limited
XII.：Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable disclose according to the category
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Propor Propor Prop
Proporti
Amount tion Amount Amount tion Amount ortio
on (%)
(%) (%) n (%)
Accounts
receivable
with
significant
12.91 68.83
single amount 60,613,303.55 8.61% 44,314,296.48 73.11% 64,385,380.76 44,314,296.48
% %
and
individually
withdrawn bad
debt provision
Accounts
receivable for
which bad
643,101,099.6 91.36 434,142,824.2 87.04 183,421,000.3 42.25
debt 188,667,480.98 29.34%
4 % 0 % 7 %
provisions are
made on the
group basis
643,101,099.6 91.36 434,142,824.2 87.04 183,421,000.3 42.25
Aging group 188,667,480.98 29.34%
4 % 0 % 7 %
Accounts
receivable
with
insignificant
100.0
single amount 233,100.00 0.03 233,100.00 100.00 233,100.00 0.05 233,100.00
0
but
individually
withdrawn bad
debt provision
703,947,503.1 498,761,304.9 227,968,396.8
Total -- 233,214,877.46 -- -- --
9 6 5
Accounts receivable with significant single amount and individually withdrawn bad debt provision
at period-end
87
2013 Semi-annual Report of Changchai Company, Limited
√ Applicable □ Inapplicable
Unit: RMB Yuan
Provision for bad Withdrawal
Content of accounts receivable Book balance Withdrawal reason
debts proportion（%）
Customer 1 Part of accounts
44,481,357.50 28,213,730.48 63.43% receivable were
difficult to recover
Customer 2 1,902,326.58 1,902,326.58 100% Difficult to recover
Customer 3 6,215,662.64 6,184,282.59 99.5% Difficult to recover
Customer 4 5,429,151.00 5,429,151.00 100% Difficult to recover
Customer 5 2,584,805.83 2,584,805.83 100% Difficult to recover
Total 60,613,303.55 44,314,296.48 -- --
In the groups, accounts receivable adopting aging analysis 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: -- -- -- -- -- --
Subtotal for
those aging 459,886,996.23 71.51% 11,855,470.35 250,317,375.88 57.66% 5,006,347.56
within 1 year
1-2 years 3,567,499.10 0.55% 189,004.67 3,001,691.27 0.69% 150,084.60
2-3 years 1,092,432.81 0.17% 174,067.32 1,070,243.00 0.25% 160,536.46
Over 3 years 178,554,171.50 27.76% 176,448,938.64 179,753,514.05 41.4% 178,104,031.75
3-4 years 2,899,310.48 0.45% 885,097.17 2,217,551.89 0.51% 665,265.59
4-5 years 253,100.64 0.04% 162,081.09 242,989.99 0.06% 145,793.99
Over 5 years 175,401,760.38 27.27% 175,401,760.38 177,292,972.17 40.83% 177,292,972.17
Total 643,101,099.64 -- 188,667,480.98 434,142,824.20 -- 183,421,000.37
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
88
2013 Semi-annual Report of Changchai Company, Limited
Accounts receivable with insignificant single amount but individually withdrawn bad debt
provision at period-end:
√Applicable □Inapplicable
Unit: RMB Yuan
Content of accounts Withdrawal proportion
Book balance Provision for bad debts Withdrawal reason
receivable （%）
MENGCHENG
XINGNONG
AGRICULTURAL 233,100.00 233,100.00 100% Difficult to recover
MACHINERY CO.,
LTD.
Total 233,100.00 233,100.00 -- --
（2）Top five accounts receivable
Unit: RMB Yuan
Relationship with the
Name of company Amount Term Proportion (%)
Company
CHANGZHOU
DONGFENG
AGRICULTURAL Customer 62,596,931.09 Within one year 8.89%
MACHINERY GROUP
CO.，LTD
SHANDONG
WUZHENG (GROUP) Customer 51,328,411.21 Within one year 7.29%
CO., LTD.
CHANGCHAI
Within four years and
WANZHOU DIESEL Holding subsidiary 44,481,357.50 6.32%
over five years
ENGINE CO., LTD.
GOOD BROTHERS
Customer 39,993,586.18 Within one year 5.68%
CO., LTD.
DONGFENG
AUTOMOBILE CO., Customer 26,687,618.85 Within one year 3.79%
LTD.
Total -- 225,087,904.83 -- 31.97%
（3）Accounts receivable due from related parties
Unit: RMB Yuan
Name of company Relationship with the Company Amount Proportion (%)
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2013 Semi-annual Report of Changchai Company, Limited
CHANGCHAI WANZHOU
Holding subsidiary 44,481,357.50 6.32%
DIESEL ENGINE CO., LTD.
Total -- 44,481,357.50 6.32%
2. Other accounts receivable
(1) Other accounts receivable disclosed by category:
Type Ending amount Opening amount
Book balance Bad debt provision Book balance Bad debt provision
Propor Propor
Proporti Proporti
Amount Amount tion Amount Amount tion
on (%) on (%)
(%) (%)
Other
accounts
receivable
with
significant
single 4,353,188.02 11.58 4,353,188.02 100.00 4,353,188.02 10.66 4,353,188.02 100
amounts and
individual
withdrawal
of bad debt
provision
Other
accounts
receivable
with bad
debt -- -- -- --
provision
withdrawn
according to
portfolio
Aging
31,346,926.19 83.42 24,560,036.19 78.35 34,624,955.38 84.75 23,975,345.83 69.24
portfolio
Subtotal in
1,876,501.77 4.99 1,876,501.77 100.00 1,876,501.77 4.59 1,876,501.77 100
the portfolio
Other
accounts 37,576,615.98 100.00 30,789,725.98 81.94 40,854,645.17 100.00 30,205,035.62 73.93
receivables
90
2013 Semi-annual Report of Changchai Company, Limited
with
insignificant
single
amounts and
withdrawal
of bad debt
provision
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% Difficult to recover
Ltd.
Other customers 1,500,000.00 1,500,000.00 100% Difficult to recover
Total 4,353,188.02 4,353,188.02 -- --
In the groups, other accounts receivable adopting aging 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: -- -- -- -- -- --
Subtotal for
those aging 3,507,612.84 11.19% 161,996.26 7,282,260.86 21.03% 145,645.23
within 1 year
1-2 years 1,204,937.67 3.84% 65,642.53 2,216,814.75 6.4% 110,840.75
2-3 years 962,213.28 3.07% 149,313.29 736,962.44 2.13% 110,544.37
Over 3 years 25,672,162.40 81.89% 24,183,084.11 24,388,917.33 70.44% 23,608,315.48
3-4 years 2,085,440.81 6.65% 653,112.34 1,077,442.65 3.11% 323,232.80
4-5 years 167,394.54 0.53% 110,644.72 65,980.00 0.19% 39,588.00
Over 5 years 23,419,327.05 74.71% 23,419,327.05 23,245,494.68 67.14% 23,245,494.68
Total 31,346,926.19 -- 24,560,036.19 34,624,955.38 -- 23,975,345.83
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
91
2013 Semi-annual Report of Changchai Company, Limited
provision:
□Applicable √ Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□Applicable √ Inapplicable
Other accounts receivable with insignificant single amount but individually withdrawn bad debt
provision at period-end:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Content of other accounts Withdrawal proportion
Book balance Bad debts provision Withdrawal reason
receivable (%)
JIEHUA
ELECTROMACHANIC 377,033.06 377,033.06 100% Difficult to recover
AL (ANHUI) CO., LTD.
WUXI FUEL TANK
205,095.61 205,095.61 100% Difficult to recover
PLANT
Other 1,294,373.10 1,294,373.10 100% Difficult to recover
Total 1,876,501.77 1,876,501.77 -- --
（2）Top five other accounts receivable
Unit: RMB Yuan
Relationship with the
Name of company Amount Term Proportion (%)
Company
Changzhou Compressor Customer
Over five years
Plant 2,940,000.00 7.82
Changchai Group Import Customer
Over five years
and Export Company 2,853,188.02 7.59
Changzhou Xingsheng Customer
Property Management Within two years
Ltd. 1,932,190.85 5.14
Changzhou Vehicle Co., Customer
Over five years
Ltd. 1,879,038.74 5.00
Changzhou New District Customer
Over five years
Accounting Center 1,626,483.25 4.33
Total 11,230,900.86 -- 29.89
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2013 Semi-annual Report of Changchai Company, Limited
3. Long-term equity investments
(1) List of long-term equity investment
Unit: RMB Yuan
Accounting Initial investment
The investee Opening balance Increase/ decrease Closing balance
method cost
Changchai
Cost
Wanzhou Diesel 21,000,000.00 21,000,000.00 21,000,000.00
method
Engine Co., Ltd
Changchai Benniu
Cost
Diesel Engine Fittings 75,339,800.00 75,339,800.00 75,339,800.00
method
Co., Ltd
Changzhou Housheng Cost
30,000,000.00 30,000,000.00 30,000,000.00
Investment Co., Ltd. method
Chansun International Cost
1,278,440.00 1,278,440.00 1,278,440.00
(Pte.) Ltd. method
Changzhou Fuji
Changchai Robin Equity
12,294,546.00 18,618,655.83 573,439.60 19,192,095.43
Diesel Engine Co., method
Ltd.
Beijing Tsinghua
Equity
Investment 2,500,000.00
method
Management Co., Ltd.
Cost
Jiangsu Bank 38,000,000.00 38,000,000.00 38,000,000.00
method
Cost
Others 410,000.00
method
Total 180,822,786.00 184,236,895.83 573,439.60 184,810,335.43
Continued:
Withdrawal
Explanations on amount of
differences between Provision for impairment Cash bonus in
Shareholdin Voting right
The investee shareholding proportion impairment provision in the reporting
g Proportion Proportion
and voting right loss the period
proportion reporting
period
Changchai
Wanzhou Diesel 60 60
Engine Co., Ltd
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2013 Semi-annual Report of Changchai Company, Limited
Changchai Benniu
Diesel Engine Fittings 84.66 84.66
Co., Ltd
Changzhou Housheng
100 100
Investment Co., Ltd.
Chansun International
100 100
(Pte.) Ltd.
Changzhou Fuji
Changchai Robin 33 33
Diesel Engine Co., Ltd.
Beijing Tsinghua
Investment 25 25 44,182.50
Management Co., Ltd.
Jiangsu Bank 0.42 0.42
Others 410,000.00
Total 454,182.50
Notes:
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, and 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.
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 1,598,791,189.35 1,584,511,791.72
Other business revenue 12,533,974.93 22,548,367.02
Total 1,611,325,164.28 1,607,060,158.74
Cost of sales 1,459,842,700.85 1,496,934,202.57
(2) Main business (Classified by industry)
Unit: RMB Yuan
Industry Reporting period Same period of last year
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2013 Semi-annual Report of Changchai Company, Limited
Revenue of sales Cots of sales Revenue of sales Cots of sales
Internal-combustion engine
1,598,791,189.35 1,453,257,681.45 1,584,511,791.72 1,478,749,466.30
industry
Total 1,598,791,189.35 1,453,257,681.45 1,584,511,791.72 1,478,749,466.30
(3) Main business (Classified by product)
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
1,598,791,189.35 1,453,257,681.45 1,584,511,791.72 1,478,749,466.30
accessories
Total 1,598,791,189.35 1,453,257,681.45 1,584,511,791.72 1,478,749,466.30
(4) Main business (Classified by area)
Unit: RMB Yuan
Reporting period Same period of last year
Area
Revenue of sales Cots of sales Revenue of sales Cots of sales
internal 1,476,216,442.57 1,333,822,710.64 1,494,764,655.57 1,390,759,893.55
external 122,574,746.78 119,434,970.81 89,747,136.15 87,989,572.75
Total 1,598,791,189.35 1,453,257,681.45 1,584,511,791.72 1,478,749,466.30
（5）Revenue of sales from the top five customers
Unit: RMB Yuan
Proportion of total
Customers Total revenue of sales
revenue of sales (%)
SHANDONG WUZHENG (GROUP) CO., LTD. 124,301,444.73 7.71
CHANGZHOU DONGFENG AGRICULTURAL MACHINERY
GROUP CO.，LTD 93,500,000.00 5.80
BURMA GOOD BROTHERS CO LTD 78,482,289.38 4.87
DONGFENG AUTOMOBILE CO., LTD. 58,259,932.10 3.62
FOTON LOVOL INTERNATIONAL HEAVY INDUSTRY CO., LTD. 41,357,771.00 2.57
Total 395,901,437.21 24.57
5. Investment income
(1) List of investment income
Unit: RMB Yuan
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2013 Semi-annual Report of Changchai Company, Limited
Item Reporting period Same period of last year
Long-term equity investment income accounted
by cost method
Long-term equity investment income accounted
573,439.60 53,526.00
by equity method
Investment income arising from disposal of
long-term equity investments
Investment income received from holding of
11,560,000.00 8,670,000.00
available-for-sale financial assets
Investment income received from disposal of
trading financial assets
Total 12,133,439.60 8,723,526.00
(2)Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Reason for increase/decrease
Name of investee Reporting period Same period of last year
YoY
Changzhou Fuji
Changchai Robin Profits increased in the
573,439.60 53,526.00
Gasoline Engine Co., reporting period
Ltd.
Total 573,439.60 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 37,969,091.50 27,197,187.46
Add: Provision for assets impairments -1,355,223.11 2,873,555.97
Depreciation of fixed assets, oil and gas assets and
productive biological assets 34,465,109.33 25,549,673.21
Amortization of intangible assets 1,138,009.17 1,103,467.86
Amortization of long-term deferred expense
Losses/gains on disposal of property, intangible asset
and other long-term assets -269,485.95 -2,486,257.01
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2013 Semi-annual Report of Changchai Company, Limited
Losses/gains on scrapped of fixed assets
Losses/gains from variation of fair value
Financial cost 1,304,981.32 398,046.85
Investment loss -12,133,439.60 -8,723,526.00
Decrease in deferred tax assets
Increase in deferred tax liabilities -17,663,775.00 14,523,600.00
Decrease in inventory 98,545,403.27 85,719,767.23
Decrease in accounts receivable from operating
activities -160,072,555.10 -40,478,299.24
Increase in accounts payable from operating activities 106,055,956.55 78,892,368.22
Others
Net cash flows generated from operating activities 87,984,072.38 184,569,584.55
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 657,213,587.91 479,861,904.51
Less: opening balance of cash 605,259,198.95 440,239,150.22
Plus: closing balance of cash equivalent
Less: opening balance of cash equivalents
The net increase in cash and cash equivalents 51,954,388.96 39,622,754.29
XIII：Supplemental information
1. List of non-recurring gains and losses in the period
Unit: RMB Yuan
Item Amount Note
Net profits of disposal of fixed
Loss and gains on disposal of non-current assets
269,485.95 assets
Governmental subsidy included in the current profits
and losses(is closely related with the business event,
except for the governmental subsidy that according to 790,000.00
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2013 Semi-annual Report of Changchai Company, Limited
the national unity standard quota or the quantitative
regal assets)
In addition to the valid hedging activity associated
with the normal operation of the Company, the
changes in fair value through gains or losses which
arising from the holding trading financial assets and
the trading financial liabilities as well as the
investment income that earning from the disposal of
trading financial assets, trading financial liabilities
and available-for-sale financial assets 219,367.20
Income and expenses of the other operation except for
the mentioned above -1,324,436.90
The effect of income tax 141,269.72
the effect of minority interest (after tax) 145,840.83
Total -332,694.30
Notes: Each non-recurring gains and losses would be listed by pretax amount.
2. Return on equity and earnings per share
Unit: RMB Yuan
EPS
Profit in the reporting period The weighted average ROE (%)
Basic EPS Diluted EPS
Net profit attributable to the
Company's common stock 2.20% 0.07 0.07
shareholders
Net profit attributable to
shareholders of the Company's
2.22% 0.07 0.07
common stock after deducting
non-recurring gains and losses
3. Particulars on the abnormal conditions of main items in the financial statements of the
Company and relevant reasons
(1) Accounts receivable
Amount at the period-end increased RMB 20,579,890,000 over the period-begin, with an increase of 68.78%,
mainly because the Company strengthens the promotions, and expanded the proportion of credit sales in a
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2013 Semi-annual Report of Changchai Company, Limited
controllable scale.
(2) Other accounts receivable
Amount at the period-end increased RMB 1,269,070,000 over the period-begin, with an increase of 98.43%,
mainly because the Company’s subsidiary—Changzhou Housheng Investment Co., Ltd. provided temporary loan
to its supplier of Huachi Machinery Co., Ltd.
(3) Short-term loans
Amount at the period-end increased RMB 10,000,000 over the period-begin, with an increase of 50.00%, mainly
because the Company’s subsidiary—Benniu increased the bank loans in this period.
(4) Advance Receipt
Amount at the period-end increased RMB 3,688,000,000 over the period-begin, with an increase of 116.52%,
mainly because the retailers had paid parts of the payments for goods to the Company for inventory reserve in the
production peak season.
(5) Payroll payable
Amount at the period-end decreased RMB 1,833,580,000 over the period-begin, with an decrease of 41.00%,
mainly because the salaries and bonus withdrawn in last period have been largely paid in the reporting period.
(6) Tax payable
Amount at the period-end increased RMB 2,591,780,000 over the period-begin, with an increase of 44.89%,
mainly because the parent company’s inventories in the period-end decreased, and the corresponding VAT input
tax decreased.
(7) Dividends payable
Amount at the period-end increased RMB 1,403,440,000 over the period-begin, with an increase of 360.65%,
mainly because part of dividends distributed in the reporting period have not been withdrawn.
(8) Administration expenses
Amount at the period-end increased RMB 2,595,520,000 over the period-begin, with an increase of 53.91%,
mainly because the relevant expenses increased owning to the one-hundred-year anniversary of the parent
company.
(9) Investment income
Amount at the period-end increased RMB 339,880,000 over the period-begin, with an increase of 37.96%, mainly
because the dividends of the Beiqi Futon increased.
(10) Non-operating income
Amount at the period-end decreased RMB 466,570,000 over the period-begin, with an decrease of 65.62%, mainly
because the incomes of assets disposal and subsidies decreased.
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2013 Semi-annual Report of Changchai Company, Limited
(11) Income tax expenses
Amount at the period-end increased RMB 184,670.000 over the period-begin, with an increase of 33.53%, mainly
because the Company’s profits increased in the reporting period.
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2013 Semi-annual Report of Changchai Company, Limited
IX. Documents Available for Reference
1. Original Copy of the 2013 Semi-annual Report signed by Chairman of the Board.
2. Accounting statements with the signatures and seals of the person-in-charge of the Company,
the person-in-charge of accounting affairs and the accounting organ.
3.All the originals of the Company’s documents and public notices disclosed in the reporting
period in Securities Times and Ta Kung Pao—the newspapers designated by China Securities
Regulatory Commission.
4. Articles of Association of the Company.
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