CHANGCHAI COMPANY, LIMITED
SEMI-Financial Report 2014
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has 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 551,913,952.63 688,297,469.30
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 199,453,958.43 257,845,729.93
Accounts receivable 509,084,231.25 317,295,375.34
Accounts paid in advance 5,729,029.03 14,659,048.00
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 21,924,873.94 12,723,300.47
Financial assets purchased under
agreements to resell
Inventories 439,182,789.99 473,238,876.29
Non-current assets due within 1 year
Other current assets
Total current assets 1,727,288,835.27 1,764,059,799.33
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 368,752,000.00 368,754,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 65,362,119.40 64,748,325.73
Investing property 60,593,541.23 61,697,711.63
Fixed assets 603,448,947.19 619,468,246.18
Construction in progress 99,655,302.07 78,207,347.80
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 84,529,924.49 84,217,899.70
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 1,195,990.26 1,195,990.26
Other non-current assets
Total of non-current assets 1,283,537,824.64 1,278,289,521.30
Total assets 3,010,826,659.91 3,042,349,320.63
Current liabilities:
Short-term borrowings 30,000,000.00 30,000,000.00
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 248,110,000.00 246,300,000.00
Accounts payable 499,234,937.72 577,327,834.60
Accounts received in advance 47,940,584.35 38,090,958.80
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 26,724,757.17 57,122,045.12
Tax payable -14,227,020.07 -23,761,875.83
Interest payable
Dividend payable 3,891,433.83 3,891,433.83
Other accounts payable 207,856,766.31 174,454,382.17
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 1,913,733.67 1,939,407.40
Total current liabilities 1,051,445,192.98 1,105,364,186.09
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 49,031,625.00 49,031,925.00
Other non-current liabilities 58,078,566.13 61,894,052.94
Total non-current liabilities 107,110,191.13 110,925,977.94
Total liabilities 1,158,555,384.11 1,216,290,164.03
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 448,862,029.25 448,863,729.25
Less: Treasury stock
Specific reserves 6,996,256.56 6,996,256.56
Surplus reserves 289,629,574.39 289,629,574.39
Provisions for general risks
Retained profits 528,109,322.52 502,779,906.92
Foreign exchange difference -28,981.92 -66,730.67
Total equity attributable to owners of
1,834,942,526.80 1,809,577,062.45
the Company
Minority interests 17,328,749.00 16,482,094.15
Total owners’ (or shareholders’) equity 1,852,271,275.80 1,826,059,156.60
Total liabilities and owners’ (or
3,010,826,659.91 3,042,349,320.63
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 528,728,310.29 649,755,641.89
Transactional financial assets
Notes receivable 198,565,162.77 257,695,729.93
Accounts receivable 471,025,279.62 287,405,670.66
Accounts paid in advance 5,532,294.55 10,821,513.13
Interest receivable
Dividend receivable
Other accounts receivable 8,547,562.96 10,397,443.72
Inventories 350,183,100.57 401,992,702.79
Non-current assets due within 1 year
Other current assets
Total current assets 1,562,581,710.76 1,618,068,702.12
Non-current assets:
Available-for-sale financial assets 368,752,000.00 368,754,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 213,907,059.40 188,666,565.73
Investing property 60,593,541.23 61,697,711.63
Fixed assets 481,710,036.56 496,473,706.65
Construction in progress 99,192,866.18 77,785,739.64
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 82,501,569.54 82,161,279.41
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 1,195,990.26 1,195,990.26
Other non-current assets
Total of non-current assets 1,307,853,063.17 1,276,734,993.32
Total assets 2,870,434,773.93 2,894,803,695.44
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 241,110,000.00 239,300,000.00
Accounts payable 470,735,552.20 534,436,105.73
Accounts received in advance 47,440,608.47 48,173,277.25
Employee’s compensation payable 23,937,402.26 52,616,431.17
Tax payable -5,707,452.98 -16,220,685.07
Interest payable
Dividend payable 3,243,179.97 3,243,179.97
Other accounts payable 199,592,133.09 167,758,011.92
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 980,351,423.01 1,029,306,320.97
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 49,031,625.00 49,031,925.00
Other non-current liabilities 58,078,566.13 61,894,052.94
Total non-current liabilities 107,110,191.13 110,925,977.94
Total liabilities 1,087,461,614.14 1,140,232,298.91
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 460,890,184.95 460,891,884.95
Less: Treasury stock
Specific reserves 6,996,256.56 6,996,256.56
Surplus reserves 289,629,574.39 289,629,574.39
Provision for general risks
Retained profits 464,082,817.89 435,679,354.63
Foreign exchange difference
Total owners’ (or shareholders’) equity 1,782,973,159.79 1,754,571,396.53
Total liabilities and owners’ (or
2,870,434,773.93 2,894,803,695.44
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. 2014 Jan.-Jun. 2013
I. Total operating revenues 1,339,876,201.72 1,597,702,698.46
Including: Sales income 1,339,876,201.72 1,597,702,698.46
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 1,300,717,656.51 1,562,568,115.06
Including: Cost of sales 1,185,484,758.63 1,432,960,897.52
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 315,287.40 277,350.13
Selling and distribution expenses 58,523,814.07 64,200,737.85
Administrative expenses 62,882,576.84 74,097,146.15
Financial expenses -7,132,562.78 -7,612,793.48
Asset impairment loss 643,782.35 -1,355,223.11
Add: Gain/(loss) from change in fair
value (―-‖ means loss)
Gain/(loss) from investment (―-‖
1,472,670.17 12,352,806.80
means loss)
Including: share of profits in associates
and joint ventures
Foreign exchange gains (―-‖ means
loss)
III. Business profit (―-‖ means loss) 40,631,215.38 47,487,390.20
Add: non-operating income 7,218,462.62 2,444,279.30
Less: non-operating expense 5,605,447.60 2,709,230.25
Including: loss from non-current asset
61,479.60 17,207.16
disposal
IV. Total profit (―-‖ means loss) 42,244,230.40 47,222,439.25
Less: Income tax expense 7,094,145.06 7,353,641.41
V. Net profit (―-‖ means loss) 35,150,085.34 39,868,797.84
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
34,303,430.49 39,865,197.16
Company
Minority shareholders’ income 846,654.85 3,600.68
VI. Earnings per share -- --
(I) Basic earnings per share 0.06 0.07
(II) Diluted earnings per share 0.06 0.07
VII. Other comprehensive incomes 36,048.75 -100,140,108.12
VIII. Total comprehensive incomes 35,186,134.09 -60,271,310.28
Attributable to owners of the
34,339,479.24 -60,274,910.96
Company
Attributable to minority
846,654.85 3,600.68
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. 2014 Jan.-Jun. 2013
I. Total sales 1,354,997,514.11 1,611,325,164.28
Less: cost of sales 1,212,418,726.32 1,459,842,700.85
Business taxes and surcharges
Distribution expenses 55,680,402.73 61,139,755.87
Administrative expenses 55,405,434.27 66,196,199.72
Financial costs -8,790,528.16 -8,792,831.94
Impairment loss 643,782.35 -1,355,223.11
Add: gain/(loss) from change in fair
value (―-‖ means loss)
Gain/(loss) from investment (―-‖ means
3,060,393.67 12,133,439.60
loss)
Including: income form investment on
associates and joint ventures
II. Business profit (―-‖ means loss) 42,700,090.27 46,428,002.49
Add: non-business income 6,216,359.80 1,172,586.26
Less: non-business expense 5,559,301.31 2,709,116.75
Including: loss from non-current asset
61,479.60 17,207.16
disposal
III. Total profit (―-‖ means loss) 43,357,148.76 44,891,472.00
Less: income tax expense 6,533,070.61 6,922,380.50
IV. Net profit (―-‖ means loss) 36,824,078.15 37,969,091.50
V. Earnings per share -- --
(I) Basic earnings per share 0.07
(II) Diluted earnings per share 0.07
VI. Other comprehensive income -1,700.00 -100,094,725.00
VII. Total comprehensive income 36,822,378.15 -62,125,633.50
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. 2014 Jan.-Jun. 2013
I. Cash flows from operating activities:
Cash received from sale of
1,394,839,795.50 1,616,369,972.24
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
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 19,215,031.04 23,964,783.80
Other cash received relating to
18,014,958.47 24,647,890.64
operating activities
Subtotal of cash inflows from operating
1,432,069,785.01 1,664,982,646.68
activities
Cash paid for goods and services 1,252,794,264.51 1,356,780,835.29
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 145,777,445.78 157,035,563.67
Various taxes paid 26,373,319.83 21,549,567.29
Other cash payment relating to
37,480,542.74 42,945,364.85
operating activities
Subtotal of cash outflows from
1,462,425,572.86 1,578,311,331.10
operating activities
Net cash flows from operating activities -30,355,787.85 86,671,315.58
II. Cash flows from investing activities:
Cash received from withdrawal of
0.00
investments
Cash received from return on
1,472,670.17 11,779,367.20
investments
Net cash received from disposal of
fixed assets, intangible assets and other 158,173.02 286,693.11
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
20,000.00 5,000,000.00
investing activities
Subtotal of cash inflows from
1,650,843.19 17,066,060.31
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 61,493,442.88 56,154,612.02
assets
Cash paid for investment 0.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries
23,850,000.00
and other business units
Other cash payments relating to
11,500,000.00 21,000,000.00
investing activities
Subtotal of cash outflows from
96,843,442.88 77,154,612.02
investing activities
Net cash flows from investing activities -95,192,599.69 -60,088,551.71
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
Cash received from issuance of
bonds
Other cash received relating to
4,955.77
financing activities
Subtotal of cash inflows from financing
0.00 20,504,955.77
activities
Repayment of borrowings 10,500,000.00
Cash paid for interest expenses and
8,974,014.89 1,403,740.18
distribution of dividends or profit
Including: dividends or profit paid
553,400.00
by subsidiaries to minority shareholders
Other cash payments relating to
financing activities
Sub-total of cash outflows from
8,974,014.89 11,903,740.18
financing activities
Net cash flows from financing activities -8,974,014.89 8,601,215.59
IV. Effect of foreign exchange rate
37,748.75 -45,383.12
changes on cash and cash equivalents
V. Net increase in cash and cash
-134,484,653.68 35,138,596.34
equivalents
Add: Opening balance of cash and
610,882,216.18 637,004,823.27
cash equivalents
VI. Closing balance of cash and cash
476,397,562.50 672,143,419.61
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. 2014 Jan.-Jun. 2013
I. Cash flows from operating activities:
Cash received from sale of
1,396,130,314.62 1,611,461,476.63
commodities and rendering of service
Tax refunds received 19,215,031.04 23,964,783.80
Other cash received relating to
16,849,880.76 20,158,573.47
operating activities
Subtotal of cash inflows from operating
1,432,195,226.42 1,655,584,833.90
activities
Cash paid for goods and services 1,283,081,961.60 1,366,693,890.34
Cash paid to and for employees 128,355,508.04 141,588,380.76
Various taxes paid 22,352,270.90 17,960,083.75
Other cash payment relating to
32,394,115.76 41,358,406.67
operating activities
Subtotal of cash outflows from
1,466,183,856.30 1,567,600,761.52
operating activities
Net cash flows from operating activities -33,988,629.88 87,984,072.38
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on 2,446,600.00 11,560,000.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 158,173.02 286,693.11
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
2,604,773.02 11,846,693.11
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 56,797,296.86 47,695,953.82
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
24,626,700.00
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
81,423,996.86 47,695,953.82
investing activities
Net cash flows from investing activities -78,819,223.84 -35,849,260.71
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 0.00
activities
Repayment of borrowings 0.00 0.00
Cash paid for interest expenses and
8,420,614.89 180,422.71
distribution of dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from 8,420,614.89 180,422.71
financing activities
Net cash flows from financing activities -8,420,614.89 -180,422.71
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-121,228,468.61 51,954,388.96
equivalents
Add: Opening balance of cash and
574,440,388.77 605,259,198.95
cash equivalents
VI. Closing balance of cash and cash
453,211,920.16 657,213,587.91
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
Jan.-Jun. 2014
Unit: RMB Yuan
Reporting period
Equity attributable to owners of the Company
Paid-up
Total
Item capital Minority
Less: General
Capital Specific Surplus Retaine owners’
(or treasury risk Others interests
reserve reserve reserve d profit equity
share stock reserve
capital)
I. Balance at the end of the 561,374 448,863, 6,996,25 289,629 502,779, -66,730. 16,482,09 1,826,059,
previous year ,326.00 729.25 6.56 ,574.39 906.92 67 4.15 156.60
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374 448,863, 6,996,25 289,629 502,779, -66,730. 16,482,09 1,826,059,
the year ,326.00 729.25 6.56 ,574.39 906.92 67 4.15 156.60
III. Increase/ decrease of
-1,700.0 25,329,4 37,748.7 846,654.8 26,212,119
amount in the year (―-‖ means
0 15.60 5 5 .20
decrease)
34,303,4 846,654.8 35,150,085
(I) Net profit
30.49 5 .34
(II) Other comprehensive -1,700.0 37,748.7
36,048.75
incomes 0 5
-1,700.0 34,303,4 37,748.7 846,654.8 35,186,134
Subtotal of (I) and (II)
0 30.49 5 5 .09
(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
-8,974,0 -8,974,014.
(IV) Profit distribution
14.89 89
1. Appropriations to
surplus reserves
2. Appropriations to
general risk provisions
3. Appropriations to -8,974,0 -8,974,014.
owners (or shareholders) 14.89 89
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
561,374 448,862, 6,996,25 289,629 528,109, -28,981. 17,328,74 1,852,271,
IV. Closing balance
,326.00 029.25 6.56 ,574.39 322.52 92 9.00 275.80
Jan.-Jun. 2013
Unit: RMB Yuan
Last year
Equity attributable to owners of the Company
Paid-up
Total
Item capital Less: General Minority
Capital Specific Surplus Retaine owners’
(or treasury risk Others interests
reserve reserve reserve d profit equity
share stock reserve
capital)
I. Balance at the end of the 561,374 548,950, 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: retrospective
adjustments due to business
combinations under the same
control
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374 548,950, 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 of
-100,09 25,830,8 -45,383. -74,305,66
amount in the year (―-‖ means 3,600.68
4,725.00 39.01 12 8.43
decrease)
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
(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
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
Jan.-Jun. 2014
Unit: RMB Yuan
Reporting period
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 561,374,32 460,891,88 6,996,256. 289,629,57 435,679,35 1,754,571,
previous year 6.00 4.95 56 4.39 4.63 396.53
Add: change of accounting
policy
Correction of errors in
previous periods
Other
II. Balance at the beginning of 561,374,32 460,891,88 6,996,256. 289,629,57 435,679,35 1,754,571,
the year 6.00 4.95 56 4.39 4.63 396.53
III. Increase/ decrease of amount 28,403,463 28,401,763
-1,700.00
in the year (―-‖ means decrease) .26 .26
36,824,078 36,824,078
(I) Net profit
.15 .15
(II) Other comprehensive
-1,700.00 -1,700.00
incomes
36,824,078 36,822,378
Subtotal of (I) and (II) -1,700.00
.15 .15
(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
-8,420,614. -8,420,614.
(IV) Profit distribution
89 89
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners -8,420,614. -8,420,614.
(or shareholders) 89 89
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
561,374,32 460,890,18 6,996,256. 289,629,57 464,082,81 1,782,973,
IV. Closing balance
6.00 4.95 56 4.39 7.89 159.79
Jan.-Jun. 2013
Unit: RMB Yuan
Last year
Paid-up
Less: General Total
Item capital (or Capital Specific Surplus Retained
treasury risk owners’
share reserve reserve reserve profit
stock reserve equity
capital)
I. Balance at the end of the 561,374,32 560,978,53 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 of amount -100,094,7 23,934,733 -76,159,99
in the year (―-‖ 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
-14,034,35 -14,034,35
(IV) Profit distribution
8.15 8.15
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners -14,034,35 -14,034,35
(or shareholders) 8.15 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
(VII) Other
561,374,32 460,883,80 4,169,087. 282,364,91 408,266,53 1,717,058,
IV. Closing balance
6.00 9.95 73 7.36 2.88 673.92
Legal representative: Xue Guojun Person-in-charge of the accounting
work: He Jianguang
Chief of the accounting division: Jiang He
III. Company Profile
Changchai Company, Limited (hereinafter referred to as ―the Company‖) was founded on 5 May 1994, which is a
company limited by shares promoted solely by Changzhou Diesel Engine Plant through the approval by the State
Commission for Restructuring the Economic Systems with document TGS [1993] No. 9 on 15 Jan. 1993 by way of
public offering of shares. With the approved of the People's Government of Jiangsu Province SZF [1993] No. 67,
as well as reexamined and approved by China Securities Regulatory Commission (―CSRC‖) through document
ZJFSZ (1994) No. 9, the Company initially issued A shares to the public from 15 Mar. 1994 to 30 Mar. 1994. As
approved by the Shenzhen Stock Exchange through document SZSFZ (1994) No. 15, such tradable shares of the
public got listing on 1 Jul. 1994 at Shenzhen Stock Exchange with ―Su Changchai A‖ for short of stock, as well as
―0570‖ as stock code (present stock code is ―000570‖).
In 1996, with the recommendation of the Office of the People's Government of Jiangsu Province SZBH [1996] No.
13, as well as first review by Shenzhen Municipal Securities Administration Office through SZBZ [1996] No. 24,
and approval of the State Council Securities Commission ZWF [1996] No. 27, the Company issued 100 million B
shares to qualified investors on 27 Aug. 1996 to 30 Aug. 1996, getting listed on 13 Sep. 1996.
On 9 Jun. 2006, the Company held a shareholders’ general meeting related to A shares 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 and managed the industry and commerce changes registration, as well
as the Company obtained the renewed business license as legal person with No. 320400000004012. 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’s registered address is situated at No.
123 Huaide Middle Road, Changzhou, Jiangsu, as well as its head office located at No. 123 Huaide Middle Road,
Changzhou, Jiangsu.
The Company belongs to manufacturing with business scope including manufacturing and sale of diesel engine,
diesel engines part and casting, grain harvesting machine, rotary cultivators, walking tractor, mould and fixtures,
assembling and sale of diesel generating set and pumping unit. The Company mainly engaged in the production
and sales of small and medium-sized single cylinders and multi-cylinder diesel engine with the label of Changchai
Brand. The diesel engine produced and sold by the Company were mainly used in tractors, combine harvest
models, light commercial vehicle, farm equipment, small-sized construction machinery, generating sets and
shipborne machinery and equipment, etc. The Company’s main business remained unchanged in the reporting
period.
The Company established the Shareholders’ General Meeting, the Board of Directors and the Board of Supervisors,
Corporate office, Financial Department, Political Department, Investment and Development Department,
Enterprise Management Department, Human Recourses Department, Production Department, Procurement
Department, Sales Company, Market Department, Chief Engineer Office, Technology Center, QA Department,
Foundry Branch, Machine Processing Branch, Single-cylinder Engine branch, Multi-cylinder Engine Branch and
Overseas Business Department in the Company.
The financial report has been approved to be issued by the 7th Session of the 7th Board of Directors on 19 Aug.
2014.
IV. Main accounting policies, accounting estimates and prior period errors
1. Basis for preparation
With going-concern assumption as the basis, the Company prepares the following significant
accounting policies and accounting estimates in light of the actual transactions and matters, as
well as the ASBE issued by Ministry of Finance on 15 Feb. 2006.
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 forms 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 of consolidated financial statements
The Company shall start consolidating the subsidiary companies since the date the Company
obtained the actual control right of the subsidiaries and stop consolidating since the date the
Company lost the actual control right of the subsidiaries. All significant current balance,
investment, transactions and unrealized profits between the Company and subsidiary company or
among the subsidiaries shall be offset when preparing the consolidated financial statement. As for
the shares in the owner’s equity of subsidiary company not belong to the Company, shall be
indicated in the item of ―minority shareholders’ equity‖ belonging the owner’s equity in the
consolidated balance sheet.
The accounting policy or accounting period of each subsidiary is different from which of the
Company, which shall be adjusted as the Company; or subsidiaries shall prepare financial
statement again required by the Company when preparing the consolidated financial statements.
As for the added subsidiary company not controlled by the same enterprise preparing the
consolidated financial statement, shall adjust individual financial statement based on the fair value
of the identifiable net assets on the acquisition date; as for the added subsidiary companies
controlled by the same enterprise preparing the financial statement, shall not adjust the financial
statement of the subsidiaries, namely current status of each party participating in the consolidation
when the final control party starts implementing control.
7. Recognition standard for cash and cash equivalents
The term ―cash‖ refers to cash on hand and deposits that are available for payment at any time.
The term ―cash equivalents‖ refers to short-term (within 3 months from the purchase date) and
highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.
8. Foreign currency and accounting method for foreign currency
(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) Translations of financial statements in foreign currencies
On the balance sheet date, the foreign-currency monetary assets and the balance of the liability
account shall be converted into the recoding currency according to the middle price of the market
exchange rates disclosed by the People’s Bank of China on the Balance Sheet Date. The difference
between the recording-currency amount converted according to the exchange rate on the Balance
Sheet Date and the original book recording-currency amount shall be recognized as gains/losses
from foreign exchange. And the exchange gain/loss caused by the foreign-currency borrowings
related to purchasing fixed assets shall be handled according to the principle of capitalizing
borrowing expenses; the exchange gain/loss incurred in the establishment period shall be recorded
into the establishment expense; others shall be recorded into the financial expenses for the current
period.
On the balance sheet date, the foreign-currency non-monetary items measured by historical cost
shall be converted according to the middle price of the market exchange disclosed by the People’s
Bank of China on the date of the transaction, with no changes in the original recording-currency
amount; while the foreign-currency non-monetary items measured by fair value shall be converted
according to the middle price of the market exchange disclosed by the People’s Bank of China on
the date when the fair value is recognized, and the exchange gain/loss caused thereof shall be
recognized as the gain/loss from fair value changes and recorded into the gain/loss of the current
period.
9. Financial instruments
(1) Category of financial instruments
Financial instruments were divided to: 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; investments which will be held to their maturity;
accounts receivable; financial assets available for sale; 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) Financial assets and the category, recognition and measurement of the financial liabilities
The classification, recognition and measurement of financial assets and financial liabilities
(1) The financial assets or financial liabilities which are measured at their fair value and the
variation of which is recorded into the profits and losses of the current period
The interest rate or cash dividend which was gained in the when the financial assets held by the
Company are measured at its fair value and of which the variation is recorded into the profits and
losses in the current period shall be recognized as investment income. On Balance Sheet Date, the
change in the fair value of the financial asset or financial liability which is measured at its fair
value and of which the variation is recorded into the profits and losses of the current period, shall
be recorded into the profits and losses of the current period; when the said financial assets or
financial liabilities are on disposal, the difference between the fair value and the amount in initial
account shall be recognized as investment income, meanwhile, the profits and loses arising from
the change in fair value shall be adjusted.
(2) The investments which will be held to their maturity
The investments which will be held to their maturity will regard the sum between the gained fair
value and the transaction expense thereof as the initially recognized amount. The interest on bonds
in payment, of which the mature interest is not drawn, shall be solely recognized as the
receivables.
The interest revenue which is measured and recognized by the post-amortization cost and actual
interest rate during the holding period of held-to-maturity investment shall be recorded into
investment income. The actual interest rate which is recognized in the period of gaining the
held-to-maturity investment shall remained unchanged within the predicted term of existence or
within a shorter applicable term of the said investment. The little difference between actual
interest rate and coupon rate shall be recorded into the profits of losses in the current period.
When the held-to-maturity investments are on disposal, the difference between the obtained price
and investment book value shall be recorded into the profits and losses in the current period.
(3) Accounts receivable
The creditor’s right receivable formed during the Company selling commodity outside or offering
labor 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
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 (the transferee).
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 occurred assets and liabilities; 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.
(4) Derecognizing conditions of financial liabilities
Only if the whole or partly of the current obligation of the financial liabilities of the Company is
relieved, should derecognize the financial liabilities or partly of it.
(5) Recognition method for fair value 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 criteria and withdrawal methods for bad debts provision of 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) Bad debt provision for individually significant accounts receivable
Judgement basis or monetary standards of provision
for bad debts of the individually significant accounts More than 1 million (including 1 million)
receivable
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
Method of individual provision for bad debts of the
cash flow lower than book value. Upon independent
individually significant accounts receivable
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
Withdrawal method of
Name of group bad debt provision on Recognition basis of group
the group basis
Withdraw the bad debt provisions by aging analysis
Aging group Aging analysis method
method
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Age Withdrawal proportion for Withdrawal proportion for other accounts
accounts receivable (%) receivable (%)
Within 1 year (including 1
2% 2%
year)
1-2 years 5% 5%
2-3 years 15% 15%
3-4 years 30% 30%
4-5 years 60% 60%
Over 5 years 100% 100%
In the groups, adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
In the groups, 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 individually
As for an account receivable with an insignificant single amount and
which can not show its risk feature when withdrawing a bad-bet
Reason of individually withdrawing provision for it on the group basis, the bad-debt provision for the account
bad debt provision receivable shall be withdrawn based on the difference of the expected
present value of the future cash flows of the account receivable that 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 flows and
Withdrawal method for bad debt
other relevant information. According to the 4th Session of the 9th Board
provision
of Directors, as for the accounts receivable of the related parties of the
Company which owned the sustainable operation ability, the bad debts
provision should not exceed 60% at best.
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 for outgoing inventories
Pricing method: Specific identification method
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for
inventories
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) Inventory system for inventories
Inventory system for inventories: Perpetual inventory system
(5) Amortization method of the low-value consumption goods and packing articles
Low-value consumption goods
Amortization method: one-off amortization method
Packing articles
Amortization method: one-off amortization method
12. Long-term equity investment
(1) Recognition of 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 the 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 attributable shares of the net profits and losses of the
invested entity after it adjusts the net profits of the invested entity.
If the accounting policies and accounting periods adopted by the invested entity are different from
those adopted by the Company, an adjustment shall be made to the financial statements of the
invested entity in accordance with the accounting policies and accounting periods of the Company
and recognize the investment profits or losses.
As for other change of owners’ equity excluding net gains and losses of the investing enterprise,
the book value of the long-term equity investment shall be adjusted and measured into the owner’s
equity.
3) Long-term equity investment without control, joint control and significant influences
Long-term equity investment for which there is no offer in the active market and of which the fair
value cannot be reliably measured shall be measured by employing the cost method.
Long-term equity investment for which there is offer in the active market and of which the fair
value can be reliably shall be showed in the item ―available-for-sale financial assets‖, and
recorded at fair value. Change in its fair value shall be included in the shareholders’ equity.
(3) Recognition basis of joint control and significant influences to the investing enterprise
Joint control to the investing enterprise refers to the control over an economic activity in
accordance with the contracts and agreements, which does not exist unless the investing parties of
the economic activity with one an assent on sharing the control power over the relevant important
financial and operating decisions. Significant influences to the investing enterprise refers to the
power to participate in making decisions on the financial and operating policies of an enterprise,
but not to control or do joint control together with other parties over the formulation of these
policies.
(4) Method of impairment test of long-term equity investment and withdrawal method of
impairment provision of long-term investment
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 those are held for the sake of producing commodities, rendering labor
service, renting or business management with their useful life is in excess of one fiscal year and
their unit value is higher.
The fixed assets shall be measured at its cost when obtaining. Its depreciation shall be withdrawn
by adopting straight line since the next month that bring the fixed asset to the expected conditions
for use.
(2) Depreciation method of various fixed assets
Type Depreciable life (year) Residuals rate (%) Annual depreciation rate (%)
Houses and buildings 20-40 2.50-5
Machine equipment 6-15 6.67-16.67
Electronic equipment 5-10 10-20
Transportation equipment 5-10 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) Category construction in process
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
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 ceasing capitalization of borrowing costs
If the acquisition and construction activities of fixed assets, investment real estates and inventories
was interrupted abnormally and the interruption period lasts for more than 3 months, the
capitalization of the borrowing costs shall be suspended , and should recognized as current
expenses till the acquisition and construction of the asset restarts.
(4) Calculation method of capitalized 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
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 selling goods
1) Recognition of revenue from sale of 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. The amount of the revenue from selling shall
ascertain the revenue incurred by selling goods in accordance with the received or receivable price
stipulated in the contract or agreement signed between the enterprise and the buyer, unless the
received or receivable amount as stipulated in the contract or agreement is unfair. 2) Recognition
of 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. If the Company can reliably estimate the
outcome of a transaction concerning the labor services it provides, it shall recognize the revenue
from providing services employing the percentage-of-completion method on the date of the
balance sheet, otherwise the revenue from the providing of labor services shall be recognized in
accordance with the amount of the cost of labor services incurred and expected to be compensated.
The Company recognized the completion process of the transaction concerning the labor services
according to the proportion of the occurred cost of the estimated total cost. The total amount of the
revenue from providing services should be recognized according to the contract price received or
receivable from the accepting of the labor services or the agreement price except for those unfair
prices. 3）Recognition of the 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. The amount of interest revenue should be measured and confirmed in accordance with
the length of time for which the enterprise's cash is used by others and the actual interest rate；the
amount of royalty revenue should be measured and confirmed in accordance with the period and
method of charging as stipulated in the relevant contract or agreement；as for the rental revenue:
the amount of the rental revenue from the operation lease should be recognized according to the
straight-line method during each period of the lease term or accrued into the current gains and
losses if rental actual occurred.
(2) Recognition basis of royalty revenue
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. The amount of interest revenue should be measured and confirmed in
accordance with the length of time for which the enterprise's cash is used by others and the actual
interest rate；the amount of royalty revenue should be measured and confirmed in accordance with
the period and method of charging as stipulated in the relevant contract or agreement；as for the
rental revenue: the amount of the rental revenue from the operation lease should be recognized
according to the straight-line method during each period of the lease term or accrued into the
current gains and losses if rental actual occurred.
(3) Recognition basis for revenue from providing labor services
If the total labor income and the total cost could be measured in a reliable way, the relevant
economic benefits could flow into the Company, and the schedule of completion under the
transaction could be confirmed in a reliable way, should recognized the realization of labor
revenue. If an enterprise could reliably estimate the outcome of a transaction concerning the labor
services it provides, it shall recognize the revenue from providing services employing the
percentage-of-completion method on the balance sheet date, otherwise should be recognized as the
revenue according to the amount of the labor cost that incurred and expected to compensate. The
Company recognized the schedule of completion under the transaction concerning the providing
of labor services according to the proportion of the costs incurred against the estimated total costs.
The Company should ascertain the total revenue from the providing of labor services in
accordance with the received or to-be-received price of the party that receives the labor services as
stipulated in the contract or agreement, unless the received or to-be-received price as stipulated in
the contract or agreement is unfair.
21. Government Subsidies
(1) Types
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 methods
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
Deferred income tax assets and liabilities should be calculated and recognized according to the tax
base and the difference (temporary difference) of assets and liabilities between its book value. As
for the deductible losses and the tax deduction which could deduct the income tax payable in
future years according to the tax laws, should be recognized the corresponding deferred income
tax assets by considering as the temporary differences. As for the temporary differences of the
initial recognition of business reputation, should not be recognized the corresponding deferred
income tax liabilities. As for the temporary differences which are formed by the initial recognition
of assets or liabilities arising from the transactions which are not business combination that neither
affect the accounting profits nor the taxable amount (or the deductible losses),should not be
recognized the corresponding deferred income tax assets and liabilities. On the balance sheet date,
the deferred income assets and deferred income tax liabilities shall be measured at the tax rate
applicable to the period during which the assets are expected to be recovered or the liabilities are
expected to be settled. The recognition of the deferred income tax assets is limited by the income
tax payable that the Company probably gains for deducting the deductible temporary differences,
deductible losses and tax deduction. The deferred income tax assets and the liabilities arising from
the taxable temporary differences relating to the investments of subsidiary companies, associated
enterprises and contractual enterprises shall be recognized, while those the Company could control
the reverse time of the temporary differences and the temporary differences are unlikely to reverse
in the excepted future, should not be recognized.
23. Changes in main accounting policies and estimates
Whether there were changes in main accounting policies and estimates of the reporting period
□ Yes √ No
There was no any change.
(1) Changes of main accounting policies
Whether there were changes of main accounting policies of the reporting period
□ Yes √ No
There was no any change.
(2) Change of accounting estimates
Whether there were changes of accounting estimates
□ Yes √ No
24. Correction of previous accounting errors
Whether there was correction of previous accounting errors
□ Yes √ No
There was no error.
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the
report period?
□Yes √No
(2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the
report period?
□Yes √No
V. Taxation
1. Main taxes and tax rate of the Company
Type of tax Taxation basis Tax rates
VAT Payable to sales revenue 13%、17%
Business tax Taxable operating revenue 5%
Tax paid in accordance with the
Urban maintenance and construction tax Taxable turnover amount
tax regulations of tax units location
Taxable income of parent company
Enterprise income tax and subsidiary company 15%
Changwan
The taxable income of the
Enterprise income tax subsidiaries Changchai Benniu 25%
Company and Housheng Company
Property tax Income of leasing property 12%
70% of original value of
Property tax 1.2%
independent properties
Tax paid in accordance with the
Educatinonal suecharges Taxable turnover amount
tax regulations of tax units location
2. Tax preference and approved document
In 2009, the Company has been identified as High-tech Enterprises, therefore, it enjoys 15-percent preferential rate
for corporate income tax, and continues to enjoy it after the Company passed the reexamination in 2012; 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
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
Balance
of
parent
compan
y’s
equity
after
Actual
deductin
amount The The Include
g the
of Other proporti proporti d in Deducti
Register Minorit differen
Subsidia Register Busines Business investm essential on of on of consolid ble
Type ed y ce that
ries ed place s nature scope ents at investm holding voting ated minority
capital interest loss of
the ent shares rights stateme interests
minority
period- （%） （%） nt
interests
end
exceed
equity
obtained
by
minority
sharehol
ders
Changc No.
hai 1101,
Wanzho Xiamen Producti
Limited
u Diesel Road, on and
Liability 350000 21,000, 4,663,9
Engine Wanzho Industry sales of 60% 60% Yes
Compan 00.00 000.00 73.66
Co., u diesel
y
Ltd. District, engine
(Chang Chongqi
wan) ng
Changz
hou
Changc
Nangua
hai Producti
n
Benniu Limited on and
Village,
Diesel Liability 550630 sales of 550630
Benniu Industry 100% 100% Yes
Engine Compan 00.00 diesel 00.00
Town,
Fittings y engine
Wujin
Co., fittings
District
Ltd.
(Benniu
)
Changz Limited No. 123, Service 300000 External 30,000, 100% 100% Yes
hou Liability Huadei industry 00.00 enterpris 000.00
Houshe Compan Middle e
ng y Road, investme
Investm Changz nts,
ent Co., hou investme
Ltd nt
(Houshe manage
ng) ment,
consulta
ncy
service
Purchasi
ng, sales
and
technical
service
of
starting
engine
of diesel
1 Ang engine,
Mo Kio gasoline
Chansu
Industri engine,
n
al Park compone
Internati Limited
2A#05- nts,
onal Liability USD USD
12,Amk Trade supporti 100% 100% Yes
(Pte.) Compan 200,000 200,000
Tech ng
Ltd. y
1,Singa equipme
(Chansu
pore nt of
n)
(Singap starting
ore) engine
of diesel
engine
and
gasoline
engine,
agricultu
ral
equipme
nts etc.
Changz No. 20 Rice
Limited 100000
hou of 100000 Transpla 221,423
Liability Industry 00.00 95% 95% Yes
Changc Changj 00.00 nter, .13
Compan
hai iang Mini-Till
Houshe y Middle er,
ng Road, Agricult
Agricult Chang ural
ural zhou Machine
Equipm ry
ent Co., Manufac
Ltd. turing
(Houshe and
ng AE) Gardeni
ng
Machine
ry
Manufac
turing.
VII. Notes to major items of the consolidated financial statement
1. Monetary funds
Unit: RMB Yuan
Closing amount Opening amount
Item Foreign currency Conversion Foreign Conversion
RMB amount RMB amount
amount rate currency amount rate
Cash： -- -- 344,615.56 -- -- 626,951.84
RMB -- -- 344,615.56 -- -- 626,951.84
Bank savings： -- -- 476,052,946.94 -- -- 610,255,264.34
RMB -- -- 474,622,224.69 -- -- 586,688,964.61
USD 232,528.73 6.1528 1,430,702.77 3,865,288.95 6.0969 23,566,280.20
EUR 2.32 8.3966 19.48 2.32 8.4189 19.53
Other monetary capital -- -- 75,516,390.13 -- -- 77,415,253.12
RMB -- -- 75,516,390.13 -- -- 77,415,253.12
Total -- -- 551,913,952.63 -- -- 688,297,469.30
Other monetary fund at period-end was the bank acceptance deposit.
2. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance bill 199,453,958.43 257,845,729.93
Total 199,453,958.43 257,845,729.93
(2) Notes transferred to accounts receivable because drawer of the notes fails to execute the
contract or agreement, and undue notes endorsed to other parties at the end of the period
Notes receivable has already endorsed to other party but not yet expired
Unit: RMB Yuan
Issuing entity Date of issuance Expiring day Amount Remark
Jiangsu Xingyao Motor Co.,
28 Feb. 2014 28 Aug. 2014 6,000,000.00
Ltd.
Shandong Wuzheng Group
19 Feb. 2014 19 Aug. 2014 5,000,000.00
Co., Ltd.
Qirui Heavy Industry
4 Feb. 2014 4 Oct. 2014 3,500,000.00
Zhejiang Co., Ltd.
Shandong Pufa Iron and Steel
12 Mar. 2014 12 Sep. 2014 3,000,000.00
Co., Ltd.
Hangzhou Donghua Chain
25 Apr. 2014 25 Oct. 2014 3,000,000.00
Group Co., Ltd.
Total -- -- 20,500,000.00 --
3. Accounts receivable
(1) Accounts receivable classified by type
Unit:
RMB Yuan
Closing amount Opening amount
Type Book balance Bad debt provision Book balance Bad debt provision
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable with
significant single amounts 23,125,776. 19,563,556.6 23,125,77 19,563,556.6
3.14% 84.60% 4.26% 84.60%
and withdrawal of bad 05 1 6.05 1
debt provision
Accounts receivable with bad debt provision withdrawn according to portfolio
711,894,41 206,372,402. 519,100,4 205,629,123.
Account ages 96.77% 28.99% 95.53% 39.61%
4.37 56 54.00 10
711,894,41 206,372,402. 519,100,4 205,629,123.
Subtotal of the groups 96.77% 28.99% 95.53% 39.61%
4.37 56 54.00 10
Accounts receivable with
insignificant single 1,155,900
amount and individually 632,250.00 0.09% 632,250.00 100.00% 0.21% 894,075.00 77.35%
withdrawn bad debt .00
provision
Total 735,652,44 -- 226,568,209. -- 543,382,1 -- 226,086,754. --
0.42 17 30.05 71
Accounts receivable with significant single amount and individually withdrawn bad debt provision
√ Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawal
Accounts receivable Book balance Bad debt provision Withdrawal Reason
Proportion （%）
Customer 1 7,063,600.00 3,531,800.00 50% Estimated irrecoverable
Customer 2 1,902,326.58 1,902,326.58 100% Difficult to recover
Customer 3 6,215,662.64 6,185,243.20 99.51% Difficult to recover
Customer 4 5,359,381.00 5,359,381.00 100% Difficult to recover
Customer 5 2,584,805.83 2,584,805.83 100% Difficult to recover
Total 23,125,776.05 19,563,556.61 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt
provision:
√ Applicable □ Inapplicable
Closing balance Opening balance
Book balance Book balance
Aging Provision for bad Provision for bad
Proportion Proportion
Amount debts Amount debts
(%) (%)
Within 1 year
Including: -- -- -- -- -- --
Subtotal of within
504,855,085.58 70.92% 10,347,453.71 308,845,226.68 59.5% 6,176,905.00
1 year
1-2 years 10,105,567.58 1.42% 505,278.38 9,688,173.12 1.87% 484,408.67
2-3 years 1,008,570.79 0.14% 153,486.37 1,046,771.37 0.2% 157,015.72
Over 3 years 195,925,190.42 27.52% 195,366,184.10 199,520,282.83 38.43% 198,810,793.71
3 to 4 years 310,689.41 0.04% 94,206.82 428,326.55 0.08% 128,497.98
4 to 5 years 856,309.32 0.12% 513,785.59 1,024,151.38 0.2% 614,490.83
Over 5 years 194,758,191.69 27.36% 194,758,191.69 198,067,804.90 38.15% 198,067,804.90
Total 711,894,414.37 -- 206,372,402.56 519,100,454.00 -- 205,629,123.1
Unit: RMB Yuan
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□ Applicable √ Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Inapplicable
Accounts receivable with insignificant single amount but individually withdrawn bad debt
provision at period-end:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawing proportion
Account receivable Balance of book value Provision for bad debt Reason for withdrawal
(%)
Munching Xingnong
Aging was long and
Agricultural Machinery 233,100.00 233,100.00 100%
difficult to recover
Company
China Yituo Group Co.,
399,150.00 399,150.00 100% Difficult to recover
Ltd. Benma branch
Total 632,250.00 632,250.00 -- --
(2) Accounts receivable due to the top five entities
Name of entity Relationship Amount Term Proportion (%)
Changzhou Dongfeng Agricultural
Customer 66,968,308.51 Within one year
Machinery Group Co., Ltd. 9.10%
Changzhou Dongfeng Agricultural
Customer 58,477,192.83 Within one year
Machinery Group Co., Ltd. 7.95%
Dongfeng Automobile Co.,Ltd Customer 34,116,620.40 Within one year 4.64%
Shenyang Jinbei Vehicle
Customer 29,812,218.60 Within one year
Manufacturing Co.,Ltd. 4.05%
Shandong Wuzheng (Group) Co., Ltd. Customer 28,564,311.06 Within one year 3.88%
Total -- 217,938,651.40 -- 29.62%
Unit: RMB Yuan
4. Other accounts receivable
(1) Other accounts receivable disclosed by type
Unit: RMB Yuan
Closing balance Opening balance
Book balance Provision for doubtful debts Book balance Provision for doubtful deb
Category
Proportio Proportio Proportion Proport
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Other accounts
2,853,188.02 6.69% 2,853,188.02 100% 2,853,188.02 6.59% 2,853,188.02 100
receivable with
significant single
amounts and individual
withdrawal of bad debt
provision
accounts receivable with bad debt provision withdrawn according to portfolio
Aging portfolio 37,914,225.9 88.84% 24,709,351.96 65.17% 38,550,324.54 89.01% 25,827,024.07 67
Subtotal of group 37,914,225.9 88.84% 24,709,351.96 65.17% 38,550,324.54 89.01% 25,827,024.07 67
Other accounts
receivables with
insignificant single 1,907,662.13 4.47% 1,907,662.13 100% 1,907,662.13 4.4% 1,907,662.13 100
amounts and withdrawal
of bad debt provision
Total 42,675,076.05 -- 29,470,202.11 -- 43,311,174.69 -- 30,587,874.22 --
Other accounts receivable with significant single amount and individual withdrawal of bad debt provision at the
end of reporting period
√√ Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawal Proportion
Other accounts receivable Book balance Bad debt provision Withdrawal Reason
（%）
Changchai Group Import &
2,853,188.02 2,853,188.02 100% Difficult to recover
Export Company
Total 2,853,188.02 2,853,188.02 -- --
In the groups, other 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
Proportion Book balance Proportion Book balance
Amount Amount
(%) (%)
Within 1 year
Including:
Subtotal for those aging
19,146,299.90 39.96% 382,926.00 8,756,366.02 22.71% 175,127.32
within 1 year
1-2 years 1,043,911.66 2.18% 52,195.58 1,116,546.07 2.9% 55,827.30
2-3 years 1,235,380.45 2.58% 185,307.07 1,503,366.49 3.9% 225,504.97
Over 3 years 26,488,633.89 55.28% 25,368,923.31 27,174,045.96 70.49% 25,370,564.48
3-4 years 605,310.39 1.26% 181,593.12 1,516,000.94 3.93% 454,800.28
4-5 years 1,920,834.32 4.01% 1,224,841.01 1,855,702.05 4.81% 1,113,421.23
Over 5 years 23,962,489.18 50.01% 23,962,489.18 23,802,342.97 61.75% 23,802,342.97
Total 47,914,225.90 -- 25,989,351.96 38,550,324.54 -- 25,827,024.07
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□ Applicable √ Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Inapplicable
Other accounts receivable with insignificant single amount but individually withdrawn bad debt
provision at period-end:
√√ Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawal Proportion
Other accounts receivable Book balance Bad debt provision Withdrawal Reason
（%）
Jiehua Electrical (Anhui) Co.,
377,033.06 377,033.06 100% Difficult to recover
Ltd.
Wuxi Fuel Tank Factory 205,095.61 205,095.61 100% Difficult to recover
Other 1,325,533.46 1,325,533.46 100% Difficult to recover
Total 1,907,662.13 1,907,662.13 -- --
(2) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship with
Name of entity Amount Aging Proportion of the total (%)
the Company
Xuzhou East China Casting General
Customer 10,000,000.00 Within 1 year
Factory 23.43%
Changzhou Compressor Co., Ltd. Customer 2,940,000.00 Over 5 years 6.89%
Import and Export Company of
Customer 2,853,188.02 Over 5 years
Changchai Group 6.69%
Changzhou New District Accounting
Client 1,626,483.25 Over 5 years 3.09%
Center
Changzhou Xingsheng Property
Client 628,615.27 Within 1 year 1.19%
Management Co., Ltd.
Total -- 18,048,286.54 -- 34.26%
5. Prepayment
(1) Prepayment listed according to aging analysis
Aging Closing amount Opening amount
Amount Proportion （%） Amount Proportion （%）
Within 1 year 4,657,851.07 81.30% 13,699,155.24 93.45%
1-2 years 146,310.10 2.56% 70,049.80 0.48%
2-3 years 38,100.00 0.67% 3,075.10 0.02%
Over 3 years 886,767.86 15.48% 886,767.86 6.05%
Total 5,729,029.03 -- 14,659,048.00 --
Unit: RMB Yuan
(2) Top five entities of prepayment
Unit: RMB Yuan
Relationship with the Reason for
Name of entity Amount Term
Company unsettlement
Xuzhou East China Casting General Normal settlement
Supplier 2,700,728.55 Within 1 year
Factory period
Brilliant Group International Ltd. Normal settlement
Supplier 450,643.35 Within 1 year
(Shanghai) period
Changzhou Hidea Machinery Co., Ltd Normal settlement
Supplier 258,600.00 Within 1 year
period
Changzhou Chunyu Diesel Engine Parts Normal settlement
Supplier 110,100.79 Within 1 year
Co., Ltd. period
Changzhou Outskirts Materials Normal settlement
Supplier 94,717.10 Within 1 year
Recycling Co., Ltd. period
Total -- 3,614,789.79 -- --
6. Inventory
(1) Classification of inventory
Unit: RMB Yuan
Closing amount Opening amount
Item Provision for Provision for
Book balance Book value Book balance Book value
falling price falling price
Raw materials 92,012,547.36 2,816,113.21 89,196,434.15 101,823,136.99 2,816,113.21 99,007,023.78
Goods in
process 104,400,092.39 18,032,036.95 86,368,055.44 128,872,052.38 18,032,036.95 110,840,015.43
Inventory goods 272,435,173.72 18,035,127.65 254,400,046.07 272,010,816.14 18,035,127.65 253,975,688.49
Turnover
material 9,218,254.33 0 9,218,254.33 9,416,148.59 0 9,416,148.59
Total 478,066,067.80 38,883,277.81 439,182,789.99 512,122,154.10 38,883,277.81 473,238,876.29
(2) Provision for falling price of inventories
Withdrawal in the Decrease in the reporting period
Category Opening book value Closing book balance
reporting period Reversal Written off
Raw materials 2,816,113.21 2,816,113.21
Goods in process 18,032,036.95 18,032,036.95
Inventory goods 18,035,127.65 18,035,127.65
Turnover material 0.00 0.00
Total 38,883,277.81 38,883,277.81
Unit: RMB Yuan
(3) Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for falling Reasons for reversal in provision for impairment of
Item
price of inventories reporting period inventories to closing balance
(%)
Book cost is higher than
Raw materials
realizable net value
Book cost is higher than
Inventory goods
realizable net value
Book cost is higher than
Goods in process
realizable net value
7. Available-for-sale financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Available-for-sale equity instrument: 368,752,000.00 368,754,000.00
Total 368,752,000.00 368,754,000.00
Note:
The aforesaid available-for-sale equity instruments were the shares of Ninghu High Speed Stock and Foton
Automobile Stock held by the Company. The fair market value of share at period-end was the closing price of the
last trading day of the stock exchange in reporting period.
8. Investment to associated enterprise and joint venture
U
nit: RMB Yuan
Percentage of Voting
Closing total Total operating
holding shares percentage of Closing total Closing total Net profit in
Investee assets( RBM income in this
of the the Company liabilities net assets this period
ten thousand) period
Company in investee
I. Joint ventures
II. Associated enterprises
Changzhou
Fuji Changchai
Robin Diesel 33% 33% 102,073,787.96 40,958,311.67 61,115,476.29 107,292,423.90 1,859,980.81
Engine Co.,
Ltd.
Beijing
Tsinghua
Xingye
Industrial 25% 25% 2,187,675.42 2,034,852.68 152,822.74
Investment
Management
Co., Ltd.
9. Long-term equity investment
Unit: RMB Yuan
Explanati
on for
indifferen
ces Withdraw
between n
Sharehold Cash
Voting the impairme
Accounti Initial ing Impairme bonus in
Opening Increase/d Closing percentag sharehold nt
Investee ng investmen percentag nt the
balance ecrease balance e in ing provision
method t cost e in provision reporting
investee percentag in the
investee period
e and reporting
voting period
percentag
e in
investee
Changzho
u Fuji
Equity 12,294,54 19,548,32 613,793.6 20,162,11
Changcha 33% 33%
method 6.00 5.73 7 9.4
i Robin
Gasoline
Engine
Co., Ltd.
Beijing
Tsinghua
Industrial
Investme Equity 2,500,000
25% 25% 44,182.50
nt method .00
Managem
ent Co.,
Ltd.
Jiangsu Cost 38,000,00 38,000,00 38,000,00
0.42% 0.42%
Bank method 0.00 0.00 0.00
Chengdu
Changwa
n Diesel Cost 510,000.0 510,000.0
Engine method 0 0
Marketin
g Corp.
Chongqin
g
Wanzhou
Changwa Cost 290,000.0 290,000.0
n Diesel method 0 0
Engine
Fitting
Corp.
Qidong
Liantong
Cost 7,200,000 7,200,000 7,200,000
Dynamo 4% 4%
method .00 .00 .00
meter
Co., Ltd.
Cost 410,000.0 410,000.0
Others
method 0 0
61,204,54 64,748,32 613,793.6 65,362,11 1,254,182
Total
6.00 5.73 7 9.40 .50
10. Investment property
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening book balance Closing book balance
period reporting period
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 and
accumulated
amortization 25,934,859.51 1,104,170.40 27,039,029.91
Houses & buildings 25,934,859.51 1,104,170.40 27,039,029.91
III. Total net book
value of investment
property 61,697,711.63 -1,104,170.40 60,593,541.23
Houses & buildings 61,697,711.63 -1,104,170.40 60,593,541.23
V. Total book value of
investment property 61,697,711.63 -1,104,170.40 60,593,541.23
Houses & buildings 61,697,711.63 -1,104,170.40 60,593,541.23
Unit: RMB Yuan
Reporting period
Depreciation and amortization of the reporting period 1,104,170.40
Impairment provision withdrawal amount of investment property of the
0.00
reporting period
11. Fixed assets
Unit: RMB Yuan
Opening book Decrease in the Closing book
Item Increase in the reporting period
balance reporting period balance
I. Total original book
amount： 1,219,866,845.72 18,965,205.55 2,043,543.25 1,236,788,508.02
Of which: Houses &
buildings 405,042,760.27 2,538,095.95 106,357.03 407,474,499.19
Machinery equipment 755,476,414.32 15,578,511.06 1,153,127.55 769,901,797.83
Vehicles
24,733,895.14 634,542.15 551,454.61 24,816,982.68
Other facilities 34,613,775.99 214,056.39 126,247.03 34,701,585.35
-- Opening book Increase in Withdrawal in Decrease in current Closing book
balance current period current period period balance
II. Accumulated
depreciation 589,926,764.58 35,750,825.98 2,809,864.69 622,867,725.87
Of which: Houses &
buildings 182,152,928.40 26,878,029.02 2,558,993.61 206,471,963.81
Machinery equipment 366,362,257.67 6,145,915.25 212,265.36 372,295,907.56
Vehicles 14,762,073.63 1,138,625.36 38,605.72 15,862,093.27
Other facilities 26,649,504.88 1,588,256.35 28,237,761.23
Opening book Closing book
-- --
balance balance
III. Total net book value 629,940,081.14 -- 613,920,782.15
Of which: Houses &
--
buildings 222,889,831.87 201,002,535.38
Machinery equipment 389,114,156.65 -- 397,605,890.27
Vehicles 9,971,821.51 -- 8,954,889.41
Other facilities 7,964,271.11 -- 6,463,824.12
IV. Total provision for
--
impairment loss 10,471,834.96 10,471,834.96
Of which: Houses &
--
buildings 7,633,328.53 7,633,328.53
Machinery equipment 2,838,506.43 -- 2,838,506.43
Other facilities --
V. Total book value 619,468,246.18 -- 603,448,947.19
Of which: Houses &
--
buildings 215,256,503.34 193,369,206.85
Machinery equipment 386,275,650.22 -- 394,767,383.84
Vehicles 9,971,821.51 -- 8,954,889.41
Other facilities 7,964,271.11 -- 6,463,824.12
Depreciation in the reporting period was RMB 35,750,825.98.
Original price of fix assets transferred from construction was RMB 18,751,149.16.
12. Construction in progress
(1) Construction in progress
Closing balance Opening balance
Impairm
Item Impairment ent
Book balance Book value Book balance Book value
provision provisio
n
Experimental workshop of 29,619,402.47 29,619,402.47 27,883,095.92 27,883,095.92
technology center
Renovation of casting 10,345,568.90 10,345,568.90 1,233,832.09 1,233,832.09
Expansion capacity of
multi-cylinder (The 2nd
Period) 3,360,159.66 3,360,159.66 2,609,879.95 2,609,879.95
Non-road electric generator
Project 336,503.39 336,503.39 336,503.39 336,503.39
Base of land in Hehai Road 0.00 0.00 3,661,472.03 3,661,472.03
Static pressure line renovation
8,556,213.65 8,556,213.65
project 7,845,686.59 7,845,686.59
Unerected equipment and
38,736,289.21 38,736,289.21
engineering amount project 34,636,877.83 34,636,877.83
Total 99,655,302.07 99,655,302.07 78,207,347.80 78,207,347.80
(2) Change in main project of construction in progress
Unit: RMB
Yuan
Includin
Oth Project g:
Projec Capitaliz
er input Capitaliz capitaliz Source
Name of Budge Increase in current Transferred to t ation of
Opening balance dec percenta ation of ation of of Closing ba
project t period fixed assets proces interest
reas ge of interest interest funding
s rate (%)
e budget this
period
Experiment
al
workshop Self-rai
27,883,095.92 7,497,842.90 5,761,536.35 29,619,4
of sed
technology
center
Renovation Self-rai
1,233,832.09 9,111,736.81 10,345,5
of casting sed
Expansion
capacity of
Self-rai
multi-cylin 2,609,879.95 931,334.76 181,055.05 3,360,1
sed
der (The
2nd Period)
Non-road
Self-rai
electric 336,503.39 336,5
sed
generator
Project
Base of
land in Self-rai
3,661,472.03 814,628.42 4,476,100.45
Hehai sed
Road
Cylinder
body
flexible Self-rai
7,845,686.59 6,433,864.99 5,578,386.79 8,701,1
manufactur sed
ing line
project
Static
pressure
Self-rai
line 0.00 8,556,213.65 8,556,2
sed
renovation
project
Total 43,570,469.97 33,345,621.53 15,997,078.64 -- -- -- -- 60,919,0
(3) Notes of construction in progress:
There is no net realizable value lower than the book value in the closing balance of construction in progress, thus
no provision for impairment. And there was no mortgage guarantee in the construction in progress at the
period-end.
13. Intangible assets
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening balance Closing balance
period reporting period
I. Total book original value 117,730,385.96 1,573,828.71 119,304,214.67
Land use right 117,212,266.30 117,212,266.30
Software 518,119.66 1,573,828.71 2,091,948.37
II. Accumulative amortization 33,512,486.26 1,261,803.92 34,774,290.18
Land use right 33,411,740.79 1,131,733.20 34,543,473.99
Software 100,745.47 130,070.72 230,816.19
III. Total net book value 84,217,899.70 312,024.79 84,529,924.49
Land use right 83,800,525.51 -1,131,733.20 82,668,792.31
Software 417,374.19 1,443,757.99 1,861,132.18
Total book value of intangible
assets 84,217,899.70 312,024.79 84,529,924.49
Land use right 83,800,525.51 -1,131,733.20 82,668,792.31
Software 417,374.19 1,443,757.99 1,861,132.18
Amortization amount in the reporting period was RMB 1,261,803.92.
14. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
Deferred tax assets and liabilities that already recognized
Unit: RMB Yuan
Item Closing balance Opening balance
Deferred income tax assets
Provision for assets impairment 1,195,990.26 1,195,990.26
Subtotal 1,195,990.26 1,195,990.26
Deferred income tax liabilities：
Change in fair value of available-for-sale
49,031,625.00 49,031,925.00
financial assets measured into capital reserve
Subtotal 49,031,625.00 49,031,925.00
List of unrecognized deferred income tax assets
Unit: RMB Yuan
Item Closing balance Opening balance
Deductible temporary differences 0.00 0.00
Deductible losses 0.00 0.00
Total
Details about taxable differences and deductible difference project.
Unit: RMB Yuan
The amount of temporary differences
Item
Closing period Opening period
Taxable difference project
Change in fair value of available for sale financial
368,752,000.00 368,754,000.00
assets
Subtotal 368,752,000.00 368,754,000.00
Deductible difference project
Provision for impairment 7,973,268.43 7,973,268.43
Subtotal 7,973,268.43 7,973,268.43
(2) Deferred income tax assets and liabilities are listed as the net value after offset
Components items of deferred income tax assets and liabilities after mutual set-off
Unit: RMB Yuan
Deferred income tax Deductible or taxabl Deferred income tax Deductible or taxable
Item
assets or liabilities e temporary differen assets or liabilities temporary
after mutual set-off at ces after mutual set after mutual set-off at differences after
the end of the period -off at the end of t the opening of the mutual set-off at the
he period period opening of the period
Deferred income tax assets 1,195,990.26 1,195,990.26
Deferred income tax liabilities 49,031,625.00 49,031,925.00
15. List of provision for assets impairment
Unit: RMB Yuan
Opening book Decrease Closing book
Item Increase
balance Reversal Written off balance
Bad debt provision 256,674,628.93 9,564,358.21 8,920,575.86 257,318,411.28
Inventory falling price
reserves 38,883,277.81 38,883,277.81
Provision for impairment of
long-term equity investment 1,254,182.50 1,254,182.50
Provision for impairment of
fixed assets 10,471,834.96 10,471,834.96
Other 14,000,000.00 14,000,000.00
Total 321,283,924.20 9,564,358.21 8,920,575.86 321,927,706.55
16. Short-term loan
Unit: RMB Yuan
Category Closing balance Opening balance
Guaranteed borrowings 20,000,000.00 20,000,000.00
Credit loan 10,000,000.00 10,000,000.00
Total 30,000,000.00 30,000,000.00
Short-term borrowings that have been due up until the period-end but have not been paid off.:
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
U
nit: RMB Yuan
Category Closing amount Opening amount
Bankers’ acceptance bill 248,110,000.00 246,300,000.00
Total 248,110,000.00 246,300,000.00
The amount due in the next accounting period was RMB 248,110,000.0.
18. Accounts payable
(1) Accounts payable classified by nature
Uni
t: RMB Yuan
Item Closing amount Opening amount
Operating payables 491,409,276.17 568,123,524.87
Engineering payables 7,825,661.55 9,204,309.73
Total 499,234,937.72 577,327,834.60
(2) Note to large-amount accounts receivables with age of accounts being over 1 year.
There was no note to large-amount accounts receivables with age of accounts being over 1 year.
19. Advance from customers
(1) Advance from customers
U
nit: RMB Yuan
Item Closing amount Opening amount
Prepayment 47,940,584.35 38,090,958.80
Total 47,940,584.35 38,090,958.80
(2) Note to large-amount prepayment with age of accounts being over 1 year.
There was no note to large-amount prepayment with age of accounts being over 1 year.
20. Payroll payable
Unit: RMB Yuan
Item Opening book balance Increase Decrease Closing book balance
I. Wages, bonuses,
allowances and
95,549,866.15 125,934,977.01
subsidies to
employees 51,549,910.49 21,164,799.63
II. Welfare expense
3,980,655.96 3,980,655.96
for employees 0.00
III. Social insurances 25,212,030.96 25,212,030.96 0.00
Of which:
endowment 16,176,423.44 16,176,423.44
insurance 0.00
Basic medical
6,374,417.68 6,374,417.68
insurance 0.00
Unemployment 1,223,347.08 1,223,347.08 0.00
insurance
Work injury
806,545.14 806,545.14
insurance 0.00
Maternity insurance 631,297.62 631,297.62 0.00
Housing
8,042,017.33 8,042,017.33
accumulation funds 0.00
V. Other 5,572,134.63 1,835,762.32 1,847,939.41 5,559,957.54
Total 57,122,045.12 134,620,332.72 165,017,620.67 26,724,757.17
RMB 0.00 is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB 5,559,957.54, and the non-monetary benefits are
RMB 0.00, the compensation for terminating the labor contract is RMB 0.00.
21. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT -21,403,610.46 -39,783,337.11
Business tax 1,428.00 2,235.00
Corporate income tax 4,809,340.14 12,330,315.34
Personal income tax 67,317.27 703,880.69
Urban maintenance and construction tax 834,829.34
Educational surcharges 4471.75
Housing property tax 285,214.33 343,204.41
comprehensive fee 2,013,290.65 1,802,524.72
Total -14,227,020.07 -23,761,875.83
22. Dividends payable
Unit: RMB Yuan
Reason for unsettlement over 1
Name of company Closing balance Opening balance
year
Dividend payables to common
3,243,179.97 3,243,179.97 Not yet drawn
shareholders
Dividend payables to minority
648,253.86 648,253.86 Not yet drawn
shareholders
Total 3,891,433.83 3,891,433.83 --
23. Other accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Other payables 207,856,766.31 174,454,382.17
Total 207,856,766.31 174,454,382.17
(2) Notes of the other large amount accounts payable
The other large amount accounts payable at the end of the period mainly was sales discounts and quality
compensation.
24. Other current liabilities
Unit: RMB Yuan
Item Closing amount Opening amount
Sewage charge 85,000.00 105,000.00
Electricity charge 1,696,800.57 1,663,500.90
Others 131,933.10 170,906.50
Total 1,913,733.67 1,939,407.40
25. Other non-current liabilities
U
nit: RMB Yuan
Item Closing amount Opening amount
Deferred income 58,078,566.13 61,894,052.94
Total 58,078,566.13 61,894,052.94
Liabilities related to government subsidy
U
nit: RMB Yuan
Newly increase Amount recorded
Closing Related to assets/
Item Opening balance amount in the into non-operating Other changes
balance related to income
reporting period income
Special subsidy for
National High
Technology Research 2,720,000.00 1,800,000.00 2,720,000.00 1,800,000.00 Related to assets
and Development
Program of China
Subsidy for electronic
control of diesel
engine research and 6,562,500.00 2,562,500.00 4,000,000.00 Related to assets
development and
industrialization
Subsidy for the
national major 28,770,000.00 28,770,000.00 Related to assets
projects
Compensation for
23,841,552.94 332,986.81 23,508,566.13 Related to assets
removing
Total 61,894,052.94 1,800,000.00 5,615,486.81 58,078,566.13 --
26. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Capitalization Closing
Issuing new
balance Bonus shares of public Other Subtotal balance
shares
reserves
Total shares 561,374,326.00 561,374,326.00
27. Specific reserves
U
nit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening amount Closing amount
period reporting period
Safe production expenses 6,996,256.56 6,996,256.56
Total 6,996,256.56 6,996,256.56
28. Capital reserve
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening amount Closing amount
period reporting period
Capital premium (equity
150,705,016.81 150,705,016.81
premium)
Other capital reserve 20,311,137.44 20,311,137.44
Profit or loss of changes in fair
277,847,575.00 1,700.00 277,845,875.00
value
Total 448,863,729.25 1,700.00 448,862,029.25
29. Surplus reserves
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening amount Closing amount
period reporting period
Statutory surplus reserves 276,472,716.49 276,472,716.49
Discretional surplus reserves 13,156,857.90 13,156,857.90
Total 289,629,574.39 289,629,574.39
30. Retained profits
Unit: RMB Yuan n
Withdrawal or distributed
Item Amount
proportion
Retained profit at the end of year before
502,779,906.92 --
adjustment
Retained profit at the begin of year after
502,779,906.92 --
adjustment
Retained profit at the end of year after adjustment 34,303,430.49 --
Retained profit at the end of year after adjustment 8,974,014.89
Retained profit at the period-end 528,109,322.52 --
31. Revenue and Cost of Sales
(1) Revenue and Cost of Sales
U
nit: RMB Yuan
Item Reporting period Same period of last year
Income of main business 1,326,898,748.16 1,585,168,723.53
Other operating income 12,977,453.56 12,533,974.93
Cost of sales 1,185,484,758.63 1,432,960,897.52
(2) Main business (Classified by industry)
Unit: RMB Yuan
Reporting period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Internal-combustion engine 1,326,898,748.16 1,178,502,245.27 1,585,168,723.53 1,426,375,878.12
Total 1,326,898,748.16 1,178,502,245.27 1,585,168,723.53 1,426,375,878.12
(3) Main business (Classified by product)
Unit RMB Yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Diesels engines 1,326,898,748.16 1,178,502,245.27 1,585,168,723.53 1,426,375,878.12
Total 1,326,898,748.16 1,178,502,245.27 1,585,168,723.53 1,426,375,878.12
(4) Main business (Classified by area)
Unit: RMB Yuan
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Home 1,222,784,580.13 1,077,313,685.36 1,462,593,976.75 1,306,940,907.31
Abroad 104,114,168.03 101,188,559.91 122,574,746.78 119,434,970.81
Total 1,326,898,748.16 1,178,502,245.27 1,585,168,723.53 1,426,375,878.12
(5) The revenue of sales from the top five customers
Unit: RMB Yuan
Customer Main business revenue Proportion of total business revenue (%)
Customer 1 137,968,552.56 10.30%
Customer 2 104,647,944.72 7.81%
Customer 3 74,079,188.03 5.53%
Customer 4 57,917,281.38 4.32%
Customer 5 54,635,193.20 4.08%
Total 429,248,159.89 32.04%
32. Business tax and surcharges
U
nit: RMB Yuan
Same period of
Item Reporting period Calculation and payment standard
last year
Refer to the note ―Main taxes and tax rate during
Payment standard 135,203.48 116,409.53
the reporting period ‖
Urban maintenance and construction Refer to the note ―Main taxes and tax rate during
110,125.57 98,481.85
tax the reporting period ‖
Refer to the note ―Main taxes and tax rate during
Educational surtax 69,958.35 62,458.75
the reporting period ‖
Total 315,287.40 277,350.13 --
33. Sales expense
U
nit: RMB Yuan
Item Reporting period Same period of last year
Office expense 9,908,567.84 10,857,628.04
Payrolls 12,241,733.45 11,906,117.70
sales promotion expenses 5,815,563.78 6,957,764.02
Expense of guarantee for repair, replace
28,862,001.22
and refund 24,972,079.19
Freight 4,940,346.63 4,759,994.88
Others 645,523.18 857,231.99
Total 58,523,814.07 64,200,737.85
34. Administration expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Office expense 11,300,320.13 14,077,661.38
Payrolls 25,662,412.41 25,736,586.38
Depreciation and amortization 6,611,090.07 7,339,689.80
Fees for R & D 7,575,838.28 9,272,181.48
Freight 2,782,316.02 3,441,772.42
Repair charge 1,862,698.02 3,297,184.88
Tax 3,899,516.70 5,084,166.47
Others 3,188,385.21 5,847,903.34
Total 62,882,576.84 74,097,146.15
35. Financial expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Interest expenses 1,508,536.32 1,450,669.32
Less: interest income -3,755,081.76 -3,935,881.76
Exchange gains or losses 936,130.45 1,020,229.55
Others -5,822,147.79 -6,147,810.59
Total -7,132,562.78 -7,612,793.48
36. Income from investment
(1) Details of income from investment
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income measured with
613,793.67 573,439.60
equity method
Investment income achieved during the period of 0.00 11,560,000.00
holding transactional financial assets
Investment income from disposal of transactional
858,876.50 219,367.20
financial assets
Total 1,472,670.17 12,352,806.80
(2) Long-term equity investment income measured with equity method
Unit: RMB Yuan
Investee entity Reporting period Same period of last Reason for change
year
Changzhou Fuji Changchai Robin
613,793.67 573,439.60 Profits of this period increased
Gasoline Engine Co., Ltd.
Total 613,793.67 573,439.60 --
37. Asset impairment loss
Unit: RMB Yuan
38. Non-operating income
(1) Information about non-operating income
U
nit: RMB Yuan
Item Reporting period Same period of last year Amount recorded into
non-recurring gains and
losses of this period
Total gains from disposal of non-current
158,173.02 286,693.11 158,173.02
assets
Including: gains from disposal of fixed
158,173.02 286,693.11 158,173.02
assets
Government subsidies 5,516,500.00 790,000.00 5,516,500.00
Gains from disposal of current assets 297,738.00 481,693.04 297,738.00
Others 1,246,051.60 885,893.15 1,246,051.60
Total 7,218,462.62 2,444,279.30 7,218,462.62
(2) Particulars about government subsidies
U
nit: RMB Yuan
Related to assets/ related to
Item Reporting period Same period of last year
income
Special subsidy for National High
Technology Research and Development 2,720,000.00 Related to income
Program of China
Subsidy for electronic control of diesel
engine research and development and 2,562,500.00 Related to income
industrialization
Special subsidy for industrial economy
780,000.00 Related to income
steady growth promoting the transformation
Other incentives and subsidies 234,000.00 10,000.00 Related to income
Total 5,516,500.00 790,000.00 --
39. Non-operating expenses
U
nit: RMB Yuan
Item Reporting period Same period of last year Amount recorded into
non-recurring gains and
losses of this period
Total losses from disposal of non-current assets 61,479.60 17,207.16 61,479.60
Including: loss from disposal of fixed assets 61,479.60 17,207.16 61,479.60
Expense on flood prevention and security 1,339,876.20 1,598,791.19 1,339,876.20
Loss from disposal of current assets 4,036,328.10 113.50 4,036,328.10
Others 167,763.70 1,093,118.40 167,763.70
Total 5,605,447.60 2,709,230.25 5,605,447.60
40. Income tax expense
U
nit: RMB Yuan
Item Reporting period Same period of last year
Income tax calculated according to the Law of Tax and relevant
6,394,145.06 7,353,641.41
regulations
Total 6,394,145.06 7,353,641.41
41. Calculation process of basic EPS and diluted EPS
Item Amount
Calculation of basic EPS and diluted EPS
(Ⅰ) Numerator
Net profit after tax 34,303,430.49
Adjustment: influence of preference share dividends and other tools
Gains/losses attributable to ordinary share holders of parent company in the 34,303,430.49
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 the 34,303,430.49
calculation of diluted EPS
(Ⅱ) Denominator
Weighted average number of common shares issued in the reporting period 561,374,326.00
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 period 561,374,326.00
in the calculation of diluted EPS
(Ⅲ) EPS
Basic EPS
Net profit attributable to common share holders of the Company 0.06
Net profit attributable to common share holders of the Company after 0.06
deducting non-recurring gains/losses
Diluted EPS
Net profit attributable to common share holders of the Company 0.06
Net profit attributable to common share holders of the Company after 0.06
deducting non-recurring gains/losses
42. Other comprehensive incomes
Unit:
RMB Yuan
Item Reporting period Same period of last year
1. Gain/loss from the financial assets available for sale -2,000.00 -117,758,500.00
Minus: income tax impact caused by the financial assets
-300.00 -17,663,775.00
available for sale
Subtotal -1,700.00 -100,094,725.00
2. Difference from translating of foreign currency financial
37,748.75 -45,383.12
statements
Subtotal 37,748.75 -45,383.12
Total 36,048.75 -100,140,108.12
Note:
The gains from available-for-sale equity instrument were the income from fair value changes in the shares of
Ninghu High Speed Stock and Foton Automobile Stock held by the Company.
43. Notes to items in the Cash Flow Statement
(1) Other cash received related to operating activities
U
nit: RMB Yuan
Item Amount
Subsidies and grants 2,034,000.00
Cash received from other activities 12,225,876.71
Interest income 3,755,081.76
Total 18,014,958.47
(2) Other cash paid related to operating activities
U
nit: RMB Yuan
Item Amount
Sales expenses paid in cash 19,612,069.29
Management expenses paid in cash 17,316,833.94
Service fee expense 291,567.35
Other 260,072.16
Total 37,480,542.74
44. Supplementary information to the Cash Flow Statement
(1) Supplementary information to the Cash Flow Statement
Uni
t: RMB Yuan
Supplemental information Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated
-- --
from operating activities
Net profit 35,150,085.34 39,868,797.84
Add: Provision for impairment of assets 643,782.35 -1,355,223.11
Depreciation of fixed assets, of oil-gas assets, of productive
39,750,825.98 38,061,920.31
biological assets
Amortization of intangible assets 1,312,826.92 1,166,274.51
Losses on disposal of property, plant and equipment,
intangible assets and other -135,455.08 -269,485.95
long-term assets (gains: negative)
Financial cost (income: negative) 1,508,536.32 1,450,669.32
Investment loss (gains: negative) -1,472,670.17 -12,352,806.80
Increase in deferred tax liabilities (decrease: negative) -300.00 -17,663,775.00
Decrease in inventory (increase: negative) 34,056,086.30 89,515,534.42
Decrease in accounts receivable from operating activities
-112,067,072.47 -154,197,959.83
(increase: negative)
Increase in accounts payable from operating activities
-29,102,433.34 102,447,369.87
(decrease: negative)
Net cash flows generated from operating activities -30,355,787.85 86,671,315.58
2. Significant investing and financing activities without
--
involvement of cash receipts and payments
3. Change of cash and cash equivalent: --
Closing balance of cash 476,397,562.50 672,143,419.61
Less：Opening balance of cash 610,882,216.18 637,004,823.27
Add：Closing balance of cash equivalents 0.00
Less：Opening balance of cash equivalents 0.00
Net increase in cash and cash equivalents -134,484,653.68 35,138,596.34
(2) Composition of cash and cash equivalents
Unit:
RMB Yuan
Item Closing amount Opening amount
1.Cash 476,397,562.50 672,143,419.61
Of which: cash in hand 344,615.56 389,316.31
Other monetary capital available for payment at any
476,052,946.94 671,754,103.30
time
2. cash and cash equivalents 0.00 0.00
3. Balance of cash and cash equivalents at the period-end 476,397,562.50 672,143,419.61
VIII. Related party and related Transaction
1. Information related to parent company of the Company
Proportion
Proportion
of voting
of share
rights The
held by
Name of Legal Name of owned by ultimate
Relationsh Registratio Business parent Organizati
parent Type representat parent parent controller
ip n of place scope company on code
company ive company company of the
against the
against the Company
Company
Company
(%)
(%)
Changzho
u
Governme
nt
State-owne Governme
d Assets nt Agency Changzho Jiang 01411025-
Controller 30.02% 30.02%
Supervisio Legal u Huaping 1
n and Person
Administra
tion
Commissi
on
Note:
2. Particulars about subsidiaries of the Company
Registered
Full name Legal capital
Type of Type of Registered Business Shareholdin Voting right Code of
of representati ( RMB ten
subsidiary enterprise place nature g ratio (%) ratio (%) organization
subsidiary ve thousand
yuan)
Changchai
Wanzhou Limited
Controlled Chongqing
Diesel Liability Yin Lihou Industry 3,500 60.00% 60.00% 20793370-5
subsidiary City
Engine Co., Company
Ltd.
Changzhou
Changchai
Benniu Limited
Controlled Changzhou Cao
Diesel Liability Industry 5,506.30 99.00% 100.00% 25083232-8
subsidiary City Weiping
Engine Company
Fittings Co.,
Ltd.
Changzhou
Limited
Housheng Controlled Changzhou Shi
Liability Service 3,000 100.00% 100.00% 55027547-1
Investment subsidiary City Jianchun
Company
Co., Ltd.
Chansun Limited
Controlled Shi USD 20 ten
Internationa Liability Singapore Service 100.00% 100.00%
subsidiary Jianchun thousand
l (Pte.) Ltd. Company
Changzhou
Changchai
Limited
Housheng Controlled Changzhou Xu
Liability Industry 1,000 70.00% 95.00% 08690181-0
Agricultural subsidiary City Zhenping
Company
Equipment
Co., Ltd.
3. Joint ventures and associated enterprises of the Company
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 33.00% 33.00% 71497547-5
Qijie million enterprise
Diesel company
Engine Co.,
Ltd.
Beijing
Tsinghua Limited
Chen RMB10 Associated
Industrial liability Beijing Service 25.00% 25.00% 700233059
Zhangwu million enterprise
Investment company
Managemen
t Co., Ltd.
IX. Contingency
Litigation and arbitration in the reporting period
In the reporting period, the litigation the Company involved in from previous year continuing to the reporting
period：
Name of the litigation or Amount involved
Name of the entity Date of accepted Remark
arbitration institutions (RMB ten thousand)
Shandong Hongli Group Co., 2001.6.27 Changzhou Intermediate 1,436.00 Under the
Ltd. People's Court bankruptcy and
liquidation
Beijing Beiqi Changsheng 2013.8.12 Beijing Shunyi District 806.36 Concluded
Automobile Co., Ltd. People's Court mediation
agreement
Total 2242.36
Note to the case:
As the litigation of Shandong Hongli Group Co., Ltd. the company owned our Company RMB of 14.36 million
payments for good. In 2001, the Company instituted litigation from Changzhou Intermediate People's Court, in Apr.
2002, applied to the court for compulsory execution, so far, the company has entered bankruptcy proceedings, the
aforesaid payment has arranged for the full provision for bad debts.
(2) As the litigation of Beijing Beiqi Changsheng Automobile Co., Ltd. the company owned our Company
RMB of 8.0636 million payments for good. Beijing Shunyi District People's Court accepted the case on Aug. 12
2013. In court, under the auspices, two sides concluded mediation agreement. Payments of RMB 8,063,600.00
Beiqi Changsheng pay to the Company by stages. As the end of the reporting period, Beiqi Changsheng had
paid RMB 3.5 million payments of goods.
X. Co mmi t men t
There was no significant commitment shall disclose but did not disclose.
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
368,754,000.00 -2,000.00 277,845,575.00 368,752,000.00
financial assets
Subtotal of financial
368,754,000.00 -2,000.00 277,845,575.00 368,752,000.00
assets
Total of above 368,754,000.00 -2,000.00 277,845,575.00 368,752,000.00
Financial liabilities 0.00 0.00
2. Foreign financial assets and liabilities
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 account
56,202,430.22 43,860,592.75
receivables
Subtotal of financial
56,202,430.22 43,860,592.75
assets
Financial liabilities 0.00 0.00
XII. Notes to the financial statements of Parent Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Book value Provision for bad debts Book value Provision for bad debts
Items
Propo Proporti Proporti Proporti
Amount Amount Amount Amount
rtion on on on
Accounts receivable with
significant single amount
and individually 67,928,315.76 9.61% 45,500,580.18 66.98% 68,044,928.76 13.14% 45,827,025.23 67.35%
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
Aging group 638,481,266.19 90.30 189,883,722.15 29.74% 448,468,597.96 86.63% 183,542,655.83 637,957
% ,616.19
90.30 637,957
Subtotal of aging group 638,481,266.19 189,883,722.15 29.74% 448,468,597.96 86.63% 183,542,655.83
% ,616.19
Accounts receivable with
insignificant single
100.00 1,155,9
amount but individually 632,250.00 0.09% 632,250.00 1,155,900.00 0.23% 894,075.00
% 00.00
withdrawn bad debt
provision
707,041
Total 707,041,831.95 -- 236,016,552.33 -- 517,669,426.72 -- 230,263,756.06
,831.95
Accounts receivable with significant single amount and individually withdrawn bad debt provision at period-end
Unit: RMB Yuan
Content of accounts Withdrawal
Book balance Provision for bad debts Withdrawal reason
receivable proportion（%）
Difficult to recover part of
Customer 1 44,802,539.71 25,937,023.57 57.89%
the account receivable
Customer 2 7,063,600.00 3,531,800.00 50.00% Difficult to recover
Customer 3 1,902,326.58 1,902,326.58 100.00% Difficult to recover
Customer 4 6,215,662.64 6,185,243.20 99.51% Difficult to recover
Customer 5 5,359,381.00 5,359,381.00 100.00% Difficult to recover
Customer 6 2,584,805.83 2,584,805.83 100.00% Difficult to recover
Total 67,928,315.76 45,500,580.18 --
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
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Within 1 year
Including: -- -- -- -- -- --
Subtitao of
450,971,657.14 70.63% 13,056,602.52 259,312,074.38 57.82% 5,186,241.47
within 1 year
1-2 years 8,568,554.10 1.34% 389,154.67 9,688,173.12 2.16% 484,408.67
2-3 years 1,086,883.45 0.17% 175,026.32 1,046,771.37 0.23% 157,015.72
Over 3 years 177,854,171.50 27.86% 176,262,938.64 178,421,579.09 39.78% 177,714,989.97
3 to 4 years 1,885,310.48 0.30% 685,097.17 428,326.55 0.10% 128,497.98
4 to 5 years 1,053,100.64 0.16% 662,081.09 1,016,901.38 0.23% 610,140.83
Over 5 years 174,915,760.38 27.40% 174,915,760.38 176,976,351.16 39.46% 176,976,351.16
Total 638,481,266.19 -- 189,883,722.15 448,468,597.96 -- 183,542,655.83
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt
provision:
□ Applicable √ Inapplicable
Accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Inapplicable
Accounts receivable with insignificant single amount but independently withdrawn bad debts provision
√Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawing proportion
Account receivable Balance of book value Provision for bad debt Reason for withdrawal
(%)
MengCheng Xingnong
Aing was long and
Agricultural Machinery 233,100.00 233,100.00 100%
difficult to recover
Co.,Ltd.
YTO Group Co., Ltd. Aing was long and
399,150.00 399,150.00 100%
Benma Branch difficult to recover
Total 632,250.00 632,250.00 -- --
(2) Top five accounts receivable
Unit: RMB Yuan
Relationship with
Name of company Amount Term Proportion (%)
the Company
Changzhou Dongfeng Agricultural
Client 66,968,308.51 Within 1year 9.47%
Machinery Group Co., Ltd.
Jiangsu World Agricultural Machinery
Client 58,477,192.83 Within 1year 8.27%
Co., Ltd.
Changchai Wanzhou Diesel Engine Co., Controlling Within 4 years& over 5
44,802,539.71 6.34%
Ltd subsidiary years
Dongfeng Automobile Co., Ltd. Client 34,116,620.40 Within 1year 4.83%
Shenyang Jinbei Vehicle Manufacturing
Client 29,812,218.60 Within 1year 4.22%
Co.,Ltd.
Total -- 234,176,880.05 -- 33.13%
(3) Accounts receivable of related parties
Unit: RMB Yuan
Name of entity Relationship Amount Proportion (%)
CHANGCHAI WANZHOU
Controlling subsidy 44,802,539.71 6.34%
DIESEL ENGINE CO., LTD.
Total -- 44,802,539.71 6.34%
2. Other accounts receivable
（1）Other accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proportion Proportion Proportion Proport
Amount Amount Amount Amount
(%) (%) (%) n (%)
Other accounts
receivable with
significant single
2,853,188.02 7.95% 2,853,188.02 100.00% 2,853,188.02 7.56% 2,853,188.02 100%
amounts and individual
withdrawal of bad debt
provision
Other accounts receivable with bad debt provision withdrawn according to portfolio
Aging portfolio 31,120,387.71 86.73% 22,572,824.75 59.53% 32,970,268.47 87.38% 22,572,824.75 68.46
Subtotal of aging
31,120,387.71 86.73% 22,572,824.75 59.53% 32,970,268.47 87.38% 22,572,824.75 68.46
portfolio
Other accounts
receivables with
insignificant single
1,907,662.13 5.32% 1,907,662.13 100.00% 1,907,662.13 5.06% 1,907,662.13 100
amounts and
withdrawal of bad debt
provision
Total 35,881,237.86 -- 27,333,674.90 -- 37,731,118.62 -- 27,333,674.90 --
Other accounts receivable with significant single amount and individual withdrawal of bad debt provision at the
end of reporting period
√Applicable □ Inapplicable
Unit: RMB Yuan
Withdrawal Proportion
Other accounts receivable Book balance Bad debt provision Withdrawal Reason
（%）
Changchai Group Import &
2,853,188.02 2,853,188.02 100% Difficult to recover
Export Company
Total 2,853,188.02 2,853,188.02 -- --
In the group, other accounts receivable withdrawn bad debt provision by adopting aging analysis
√Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Age
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Within 1 year
Including: -- -- -- -- -- --
Subtotal within 1
6,074,186.94 19.52% 151,219.65 7,560,982.07 22.93% 151,219.65
year
1-2 years 861,570.55 2.77% 44,917.49 898,349.88 2.72% 44,917.49
2-3 years 1,212,215.58 3.90% 225,504.91 1,503,366.09 4.56% 225,504.91
Over 3 years 22,972,414.64 73.82% 22,151,182.70 23,007,570.43 69.79% 22,151,182.70
3-4 years 702,415.68 2.26% 220,333.93 734,446.44 2.23% 220,333.93
4-5 years 852,563.02 2.74% 513,412.83 855,688.05 2.60% 513,412.83
Over 5 years 21,417,435.94 68.82% 21,417,435.94 21,417,435.94 64.96% 21,417,435.94
Total 31,120,387.71 -- 22,572,824.75 32,970,268.47 -- 22,572,824.75
In the group, the other accounts receivable using balance percentage method for withdrawing
provisions for bad debt:
□ Applicable √ Inapplicable
In the group, the accounts receivable were using other methods for withdrawing provisions for bad
debt:
□ Applicable √ Inapplicable
Other accounts receivable with insignificant single amount but independently withdrawn bad debts provision:
√Applicable □Inapplicable
Unit: RMB Yuan
Withdrawal
Other accounts receivable Book balance Bad debt provision Withdrawal Reason
Proportion （%）
Jiehua Electrical (Anhui) Co., Difficult to recover
377,033.06 377,033.06 100%
Ltd.
Wuxi Fuel Tank Factory 205,095.61 205,095.61 100% Difficult to recover
Other 1,325,533.46 1,325,533.46 100% Difficult to recover
Total 1,907,662.13 1,907,662.13 -- --
(2) Top five entities of other receivables
U
ni
t:
R
M
B
y
u
a
n
Proportion in the
Relationship with the
Name of entity Amount Years total other accounts
Company
receivable (%)
Changzhou Compression
Customer 2,940,000.00 Over 5 years 8.19%
Factory
Changcai Import & Export
Customer 2,853,188.02 Over 5 years 7.95%
(Group) Corporation
Changzhou New District
Customer 1,626,483.25 Over 5 years 4.53%
Accounting Center
Changzhou Xingsheng
Property Management Co., Customer 628,615.27 Within 1 year 1.75%
Ltd.
China Export & Credit
Customer 614,990.00 Within 1 year 1.71%
Insurance Corporation
Total -- 8,663,276.54 -- 24.13%
3. Long-term equity investments
(1)
Unit: RMB Yuan
Sharehold Voting Reasons Withdraw
Increasin ing power for al of Cash
Accounti Initial Depreciat
Opening g or Closing proportio proportio inconfor depreciati dividends
Investee ng investmen ion
balance decreasin balance n for n for mity on for this
method t cost reserves
g amount investee investee between reserves period
(%) (%) Sharehold for this
ing period
proportio
n and
Voting
power
proportio
n
Changc
hai
Wanzho Cost 21,000,00 21,000,00 21,000,00
60% 60%
u Diesel method 0.00 0.00 0.00
Engine
Co., Ltd
Indirectly
holding
Changcha 1% of
i Benniu share
Diesel Cost 96,466,50 75,339,80 21,126,70 96,466,50 equity
99% 100%
Engine method 0.00 0.00 0.00 0.00 through
Fittings the
Co., Ltd Housheng
Investme
nt
Changzho
u
Housheng Cost 30,000,00 30,000,00 30,000,00
100% 100%
Investme method 0.00 0.00 0.00
nt Co.,
Ltd.
Chansun
Internatio Cost 1,278,440 1,278,440 1,278,440
100% 100%
nal (Pte.) method .00 .00 .00
Ltd.
Changzho Indirectly
u holding
Changch 25% of
ai share
Houshen Cost 7,000,000 3,500,000 3,500,000 7,000,000 equity
70% 95%
g method .00 .00 .00 .00 through
Agricult the
ural Housheng
Equipm Investme
ent Co., nt
Ltd.
Changzho
u Fuji
Changcha
Equity 12,294,54 19,548,32 613,793.6 20,162,11
i Robin 33% 33%
method 6.00 5.73 7 9.40
Gasoline
Engine
Co., Ltd.
Beijing
Tsinghua
Industrial
Investme Equity 2,500,000
25% 25% 44,182.50
nt method .00
Managem
ent Co.,
Ltd.
Jiangsu Cost 38,000,00 38,000,00 38,000,00
0.42% 0.42%
Bank method 0.00 0.00 0.00
Cost 410,000.0 410,000.0
Others
method 0 0
180,822,7 188,666,5 25,240,49 213,907,0 454,182.5
Total -- -- --
86.00 65.73 3.67 59.40 0
Note:
(1) Beijing Tsinghua Xingye Investment Management Co., Ltd. has no production or operation as a matter of fact,
so no relevant impairment provision is made.
(2) Other: RMB 20,000 in Changzhou Economic and Technological Development Co., Ltd., RMB 100,000 in Cha
ngzhou Tractors Co., Ltd., RMB 200,000 in the Industrial Financing Mutual Benefit Association of Changzhou Ec
onomic and Information Technology Commission and RMB 90,000 in Beijing Engineering and Agricultural Machi
nery Co., Ltd.. Due to difficulty in recovery, full-amount impairment provisions were made for the aforesaid four a
ccounts.
4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item Reporting period Same period of last year
Main operation revenue 1,342,020,060.55 1,598,791,189.35
Other operation revenue 12,977,453.56 12,533,974.93
Total 1,354,997,514.11 1,611,325,164.28
Main operating cost 1,212,418,726.32 1,459,842,700.85
(2) Main business (classified by industries)
Unit: RMB Yuan
Amount of this period Amount of last period
Name of Industries
Operating revenue Operating cost Operating revenue Operating cost
Internal-combustion engine
1,342,020,060.55 1,206,183,564.96 1,598,791,189.35 1,453,257,681.45
industry
Total 1,342,020,060.55 1,206,183,564.96 1,598,791,189.35 1,453,257,681.45
(3) Main business (classified by products)
Unit: RMB Yuan
Amount of this period Amount of last period
Name of Products
Operating revenue Operating cost Operating revenue Operating cost
Diesels engines and
1,342,020,060.55 1,206,183,564.96 1,598,791,189.35 1,453,257,681.45
accessories
Total 1,342,020,060.55 1,206,183,564.96 1,598,791,189.35 1,453,257,681.45
(4) Main business (classified by regions)
Unit: RMB Yuan
Amount of this period Amount of last period
Name of region
Operating revenue Operating cost Operating revenue Operating cost
Domestic 1,237,905,892.52 1,104,995,005.05 1,476,216,442.57 1,333,822,710.64
Overseas 104,114,168.03 101,188,559.91 122,574,746.78 119,434,970.81
Total 1,342,020,060.55 1,206,183,564.96 1,598,791,189.35 1,453,257,681.45
(5) Operating revenue from the top five customers of the Company
Unit: RMB Yuan
Proportion in total
Name of customer Total operating revenue
operating revenue (%)
Customer 1 137,968,552.56 10.18%
Customer 2 104,647,944.72 7.72%
Customer 3 74,079,188.03 5.47%
Customer 4 57,917,281.38 4.27%
Customer 5 54,635,193.20 4.03%
Total 429,248,159.89 31.67%
5. Investment income
(1) Details of investment income
Unit: RMB Yuan
Item Amount of this period Amount of last period
Investment income of long term equity investment accounted
2,446,600.00 0.00
by cost method
Investment income of long term equity investment accounted
613,793.67 573,439.60
by equity method
Investment income gained during the held of available for
11,560,000.00
sale financial assets.
Total 3,060,393.67 12,133,439.60
(2) Long-term equity investment income assessed by equity method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease YoY
year
Changzhou Fuji Changchai Robin Gasoline
613,793.67 573,439.60 Profits of this period increased
Engine Co., Ltd.
Total 613,793.67 573,439.60 --
6. Supplementary information to cash flow statement
Unit: RMB Yuan
Item Amount of this period Amount of last period
1. Reconciliation of net profit to net cash flows generated from
-- --
operating activities
Net profit 36,824,078.15 37,969,091.50
Add: Provision for impairment of assets 643,782.35 -1,355,223.11
Depreciation of fixed assets, of oil-gas assets, of productive
35,365,185.65 34,465,109.33
biological assets
Amortization of intangible assets 1,261,803.62 1,138,009.17
Losses on disposal of property, plant and equipment, intangible
assets and other -135,455.08 -269,485.95
long-term assets (gains: negative)
Financial cost (income: negative) 1,365,236.55 1,304,981.32
Investment loss (gains: negative) -3,060,393.67 -12,133,439.60
Decrease in deferred tax assets (increase: negative) -300.00 -17,663,775.00
Increase in deferred tax liabilities (decrease: negative) 51,809,602.22 98,545,403.27
Decrease in inventory (increase: negative) -124,489,041.80 -160,072,555.10
Decrease in accounts receivable from operating activities (increase:
-33,573,127.87 106,055,956.55
negative)
Increase in accounts payable from operating activities (decrease:
-33,988,629.88 87,984,072.38
negative)
Net cash flows generated from operating activities -- --
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
3. Change of cash and cash equivalent: 453,211,920.16 657,213,587.91
Closing balance of Cash 574,440,388.77 605,259,198.95
Net increase in cash and cash equivalents -121,228,468.61 51,954,388.96
XIII. Supplementary information
1 Items and amounts of extraordinary gains and losses
Unit: RMB Yuan
Government subsidy recorded into current profit or loss was regular profit or los, shall disclose recognition reason
Item Amount Note
Gain/loss on the disposal of non-current assets (including the Net income from the disposal of
158,173.02
offset part of the asset impairment provisions) fixed assets
Government grants recognized in the current period, except for
those acquired in the ordinary course of business or granted at
5,516,500.00
certain quotas or amounts according to the government’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
843,260.06
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
-5,375,774.98
gain/loss
Less: Income tax effects 351,245.37
Minority interests effects (after tax) 7,169.67
Total 783,743.06 --
one by one.
√ Applicable □ Inapplicable
Item Amount (RMB Yuan) Reason
Special subsidy for National
High Technology Research
2,720,000.00
and Development Program of
China
Electronic control of diesel
engine research and
2,562,500.00
development and
industrialization
Other incentives and subsidies 234,000.00
2. 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
34,303,430.49 39,865,197.16 1,834,942,526.80 1,809,577,062.45
accounting standards
Items and amounts adjusted according to international accounting standards
According to international
34,303,430.49 39,865,197.16 1,834,942,526.80 1,809,577,062.45
accounting standards
(2) Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
No difference
3. Return on equity and earnings per share
Unit: RMB Yuan
The weighted average ROE EPS
Profit in the reporting period
(%) Basic EPS Diluted EPS
Net profit attributable to the Company's
1.88% 0.06 0.06
common stock shareholders
Net profit attributable to shareholders of the
Company's common stock after deducting 1.84% 0.06 0.06
non-recurring gains and losses
4. Particulars on the abnormal conditions of main items in the financial statements of the
Company and relevant reasons
(1) Account receivable
Closing amount increased RMB 191.7889 million than that in the opening period, which up by 60.44%, mainly
due to the Company strengthened the promotions, expanded the proportion of credit sales within the scope of the
controllable expanded credit proportion.
(2) Prepayment
Closing amount decreased RMB 8.93 million than that in the opening period, which down by 60.92%; mainly due
to the Company controlled the inventory and reduced the suppliers of raw materials procurement.
(3) Other account receivable
Closing amount increased RMB 9.2016 million than that in the opening period, which up by72.32% ; mainly due
to the subsidiary Housheng Investment’s temporary loan from Xuzhou East China Foundry Factory
(4) Payroll payable
Closing amount decreased RMB 30.3973 million than that in the opening period, which down by 53.21%, mainly
due to paying parts of the accrued salaries and bonuses of previous period in the reporting period.
(5) Tax payable
Closing amount increased RMB 9.5349 million than that in the opening period, which up by 40.13%, mainly due
to the inventory of parent company decreased, and the related VAT input tax decreased.
(6) Assets impairment loss
Closing amount increased RMB 1.999 million than that in the opening period, which up by 147.5%, mainly due to
account receivable increased in the reporting period, thus the bad debt provision withdrawn increased.
(7) Investment income
Closing amount increased RMB 10.8801 million than that in the opening period, which up by 88.08%; mainly due
to gaining cash bonus gained of available for sale financial assets in last period, and .did not happened in this
period.
(8) Non-operating income
Closing amount increased RMB 4.77 42 million than that in the opening period, which up by 195.32%; mainly due
to the Company received the government subsidy which was increased.
(9) Non-operating expense
Non-operating expense increased RMB 1.8962 million than that in last period, which up by 106.9%, mainly due to
the increase of non-current assets disposal of the Company in this period.
Changchai Company, Limited
19 August 2014
