Abstract of the 2014 Annual Report of Changchai Company, Limited
Stock code: 000570, 200570 Stock abbreviation: SCCA, SCCB Announcement No.: 2015-008
Changchai Company, Limited
Abstract of the 2014 Annual Report
1. Important reminders
This abstract is based on the full text of the annual report. For more details, investors are suggested to read the full text disclosed at
the same time with this abstract on the website of Shenzhen Stock Exchange or any other website designated by CSRC.
This abstract is prepared in both Chinese and English. Should there be any understanding discrepancy between the two versions, the
Chinese version shall prevail.
Company profile:
Stock abbreviation SCCA, SCCB Stock code 000570, 200570
Stock exchange listed with Shenzhen Stock Exchange
For contact Company Secretary Securities Affairs Representative
Name Shi Jianchun He Jianjiang
Tel. (86)519-86610041 (86)519-68683155
Fax (86)519-86630954 (86)519-86630954
E-mail ccsjc@changchai.com cchjj@changchai.com
2. Financial highlights and change of shareholders
（1）Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Increase or decrease
2014 2013 of this year over last 2012
year (%)
Operating revenues (RMB Yuan) 2,489,792,063.33 2,927,593,052.78 -14.95% 2,955,536,089.13
Net profit attributable to shareholders
64,202,144.29 75,712,361.04 -15.20% 55,434,031.99
of the Company (RMB Yuan)
Net profit attributable to shareholders
of the Company after extraordinary 58,685,034.57 71,950,142.51 -18.44% 37,838,390.21
gains and losses (RMB Yuan)
Net cash flows from operating
-51,507,355.52 31,406,848.48 -264.00% 305,344,709.73
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.11 0.13 -15.38% 0.10
Diluted EPS (RMB Yuan/share) 0.11 0.13 -15.38% 0.10
Weighted average ROE (%) 3.28% 4.14% -0.86% 3.05%
Increase or decrease
As at 31 Dec. 2014 As at 31 Dec. 2013 of this year-end than As at 31 Dec. 2012
last year-end (%)
Total assets (RMB Yuan) 3,166,783,758.18 3,082,340,149.65 2.74% 3,181,303,850.46
Net assets attributable to shareholders
1,936,936,835.27 1,809,577,062.45 7.04% 1,845,193,200.65
of the Company (RMB Yuan)
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Abstract of the 2014 Annual Report of Changchai Company, Limited
（2） Shareholdings of the top 10 common shareholders
Total number of common shareholders
Total number of common shareholders at
67,414 at the end of the fifth trading day before 62,804
the end of the reporting period
the disclosure date of the annual report
Shareholdings of the top 10 common shareholders
Shareholdin Number of Pledged or frozen shares
Nature of Total number of
Name of shareholder g percentage restricted Status of Number of
shareholder shares held
(%) shares held shares shares
State-owned Assets Supervision and
Administration Commission of On behalf of the
30.02% 168,497,736 0
Changzhou Municipal People’s State
Government
KGI ASIA LIMITED Foreign corporation 0.92% 5,140,894 0
SUN HUNG KAI INVESTMENT
SERVICES LTD-CUSTOMERS Foreign corporation 0.66% 3,701,566 0
A/C
BANK J SAFRA SARASIN
Foreign corporation 0.64% 3,609,881 0
LTD,HONG KONG BRANCH
BNP PARIBAS WEALTH
MANAGEMENT HONG KONG Foreign corporation 0.55% 3,099,873 0
BRANCH
Jiang Xuezhen Domestic individual 0.54% 3,050,000 0
Southwest Securities-
CCB-Aggregate Asset Management
Other 0.53% 2,960,333 0
Plan of Zhufeng No. 1 of Southwest
Securities
Zha Genlou Domestic individual 0.37% 2,080,000 0
CORE PACIFIC-YAMAICHI
INTERNATIONAL (H.K.) Foreign corporation 0.33% 1,872,400 0
LIMITED
Warburg Trust Co., Ltd.-－
Assembled Funds Trust of No. 21 of Other 0.29% 1,630,643 0
Shijiehaoyu
It is unknown whether there was any associated relationship among
the top ten tradable shareholders and among the top ten
Explanation on associated relationship or persons acting in
shareholders not subject to trading moratorium, or whether they are
concert among the above-mentioned shareholders
persons acting in concert as described by Measures for the
Administrative of Disclosure of Shareholder Equity Changes.
Shareholders taking part in securities margin trading (if any) Naught
（3）Shareholdings of the top 10 preferred shareholders
□ Applicable √ Inapplicable
No such cases in the report period.
（4）Relation between the Company and its actual controller in the form of diagram
STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION
COMMISSION OF CHANGZHOU MUNICIPAL PEOPLE’S GOVERNMENT
30.02%
CHANGCHAI COMPANY, LIMITED
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Abstract of the 2014 Annual Report of Changchai Company, Limited
3. Discussion and analysis by the management
For 2014, we sold 956,100 units of various engines and generator sets, including 820,800 units of single-cylinder
engines, 125,100 units of multi-cylinder engines and 10,200 units of generator sets. Meanwhile, we exported
113,000 units of engines and generator sets by ourselves, generating an export income of USD 45.07 million. We
achieved a sales income of RMB 2.489 billion, down 14.95% from last year; and net profits attributable to
shareholders of the Company of RMB 64.2021 million, down15.20% on the year-on-year basis.
Judging from the development trends in the industry, due to the government’s new policy for vehicle emission as
well as the changes in the means and focuses of agricultural machinery subsidies, the macro-economic entered a
gear-shifting period of growth for transformation and upgrading. In the reporting period, the whole agricultural
machinery and combustion engine markets continued to decline. Under such a circumstance, we managed to
achieve a business performance better than the average in the industry. Despite a YoY decrease in both the
production and sales volumes of single-cylinder engines, we were still No. 1 in the industry in this respect. The
multi-cylinder diesel engines for automobile also saw a drop, but those for agricultural and non-road machinery
were stable.
In terms of the sale of single-cylinder diesel engines, we enhanced marketing and marketing innovation,
constantly optimized the product sales and market structures, and focused on the markets regarding governmental
subsidy projects and the market share of our main engine plants. We also adopted flexible measures to effectively
enlarge the market shares of our new products, enhanced the marketing and supporting work for key products,
beefed up marketing of new products, generator sets and pumping units, and enhanced marketing of
high-horsepower single-cylinder engines in the circulating and engine supporting sectors.
Concerning the sale of multi-cylinder diesel engines, we stabilized the current engine supporting system first, and
then effectively enlarged the market share of our multi-cylinder engines in the non-road machinery sector through
accelerating the development of our light-weight engines in sectors such as tug boats, mechanical units, ships,
small-scaled engineering machinery, etc. and providing more competitive products.
In sale of fittings, we kept integrating our service resources, continuously optimized the reserve of fittings for
market services and enhanced marketing. We also proactively pushed forward brand store building, perfected the
spare part supply system, and improved the end market service capability and the coordination capability in
marketing and market expansion.
As for export, we strengthened promotion of our new products in traditional markets such as Southeast Asia and
Africa, and beefed up exploration of new markets and customers. As a result, we successfully entered new
markets such as Columbia, the Philippines and Vietnam, and expanded markets such as Middle East and Africa.
We launched more competitive products to the market, which were more needed by the market. We also expanded
export of components, etc. to create new growth space for export profits. At the same time, considering a highly
centralized export network, we made stricter rules, standardized work processes, prevented market risks and
worked harder on the inflow of funds, which made sure the quality and quantity of our export.
In general, despite certain drops in our sales volume and income, our gross profit rate improved from the year
earlier due to stable raw and auxiliary material prices as well as effective cost reduction.
4. Matters in relation to financial reporting
(1) Explain any change of the accounting policies, accounting estimates or accounting methods as compared
with the financial reporting of last year
√ Applicable □ Inapplicable
Alteration of the accounting polices led by executing the new ASBE
At the year-begin of 2014, the Ministry of Finance issued No. 39 of ASBE—Fair Value Measurement, No. 30 of
ASBE—Presentation of Financial Statements (revised in 2014), No. 9 of ASBE—Employee Compensation (revised in 2014), No. 33
of ASBE—Consolidation Financial Statement (revised in 2014). No. 40 of ASBE—Joint Venture Arrangement, No. 2 of
ASBE—Long-term Investment (revised in 2014) and No. 41 of ASBE—Equity Disclosure of Other Entities which respectively by
C-H [2014] No.6, No. 7, No. 8, No. 10, No. 11, No. 14 and No. 16 which be required to execute among the enterprises that applied
the ASBE since 1 Jul. 2014 as well as encouraged the enterprises listed overseas to execute in advance. At the same time, the
Ministry of Finance issued No. 37 of ASBE—Presentation of Financial Instruments (revised in 2014) as C-H [2014] No. 23
(hereinafter referred to Presentation Guidelines of Financial Instruments for short), which be required to present the financial
instruments according to the requirements of the guidelines in Y2014 and the following period among the financial statement.
The Company began to execute the above 7 new issued or revised enterprises principles except for the presentation guidelines of
financial instruments since 1 Jul. 2014 and began to execute the presentation guidelines of financial instruments when compiling the
2014 financial report.
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Abstract of the 2014 Annual Report of Changchai Company, Limited
The Company adjusted according to the relative requirements of each guideline, while the influences on the financial statement items
during each term of the comparable period of the presentation as well as the amount were as follows:
Content of the changed accounting Report items significantly
policies
2013 2012
influenced
According to No. 2 of ASBE-Long-term
Long-term equity investment -45,200,000.00 -45,200,000.00
Equity Investment (revised in 2014)
Available-for-sale financial
45,200,000.00 45,200,000.00
assets
Other non-current liabilities -61,894,052.94 -62,558,726.56
According to No. 30 of Deferred income 61,894,052.94 62,558,726.56
ASBE-Presentation of Financial Capital reserve -277,847,575.00 -377,934,225.00
Statement (revised in 2014)
Translation reserve 66,730.67 32,070.75
Other comprehensive income 277,780,844.33 377,902,154.25
(2) Explain any retrospective restatement due to correction of any significant accounting error in the
reporting period
□ Applicable √ Inapplicable
No such cases in the report period.
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
√ Applicable □ Inapplicable
There was one combined unit reduced of 2014 of the Company – Changsheng Company.
Changsheng Company was the wholly owned subsidiary of the Company with the register capital of USD 0.2 million and had not
efficiently develop the operating business since established.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
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