Changchai Company, Limited Abstract of Annual Report 2016
Stock code: 000570, 200570 Stock name: Changchai A, Changchai B Announcement No.: 2017-002
CHANGCHAI COMPANY, LIMITED
ABSTRACT OF ANNUAL REPORT 2016
I Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating
results, financial condition and future development planning of the Company, investors are kindly reminded to
read the full text carefully on the media designated by the China Securities Regulatory Commission (the
“CSRC”).
This Annual Report and its abstract have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Modified auditor’s opinion
□ Applicable √ Not applicable
Proposal for profit distribution to common shareholders or converting capital reserve into share capital for
this Reporting Period, which has been considered and approved by the Board
√ Applicable □ Not applicable
Share capital increase from capital reserve
□ Yes √ No
The Board has considered and approved the following proposal for profit distribution to common
shareholders: Based on the total shares of 561,374,326, a cash dividend of RMB0.3 (tax inclusive) per 10 shares
will be distributed to all shareholders of the Company. No bonus shares will be granted, nor will any capital
reserve be converted into share capital.
Proposal for profit distribution to preference shareholders for this Reporting Period, which has been
considered and approved by the Board
□ Applicable √ Not applicable
Stock profile
Stock name Changchai A, Changchai B Stock code 000570, 200570
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name He Jianjiang
123 Huaide Middle Road, Changzhou, Jiangsu,
Office address
China
Fax (86)519-86630954
Tel. (86)519-68683155
E-mail cchjj@changchai.com
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Changchai Company, Limited Abstract of Annual Report 2016
II Brief introduction to the main business or products in this Reporting Period
As a manufacturer, we specialize in the manufacture and sale of diesel engines, diesel engine fittings and
castings, gasoline engines, gasoline engine fittings, cereal harvesting machinery, rotovators, walking tractors,
molds and jigs as well as the assembly and sale of diesel engine and gasoline engine supporting sets.
We mainly manufacture and sell small and medium-sized single-cylinder and multi-cylinder diesel engines
under the brand of “Changchai”, which are often used in tractors, combine-harvesters, light commercial vehicles,
agriculture equipment, small-sized engineering machinery, generator sets, ship machines, etc.
III Key financial results
1. Key financial results for the past three years
Indicate by tick mark whether the Company performed any retroactive adjustments to or restatement of its
accounting data due to changes of accounting policies or correction of accounting errors.
□ Yes √ No
Unit: RMB
2016 2015 +/-% 2014
Operating revenues 2,283,028,855.52 2,519,799,547.29 -9.40% 2,489,792,063.33
Net profit attributable to
62,539,896.17 71,102,792.49 -12.04% 64,202,144.29
shareholders of the Company
Net profit attributable to
shareholders of the Company 56,835,566.28 61,588,462.29 -7.72% 58,685,034.57
before exceptional profit and loss
Net cash flows from operating
99,473,944.04 127,926,882.95 -22.24% -51,507,355.52
activities
Basic earnings per share
0.11 0.13 -15.38% 0.11
(RMB/share)
Diluted earnings per share
0.11 0.13 -15.38% 0.11
(RMB/share)
Weighted average return on
3.00% 3.53% -0.53% 3.28%
equity (%)
December 31, December 31, December 31,
+/-%
2016 2015 2014
Total assets 3,724,857,266.71 3,232,406,102.20 15.23% 3,166,783,758.18
Net assets attributable to
2,323,712,892.92 2,002,910,311.01 16.02% 1,936,936,835.27
shareholders of the Company
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Changchai Company, Limited Abstract of Annual Report 2016
2. Key financial results by quarter
Unit: RMB
1Q 2Q 3Q 4Q
Operating revenues 654,517,225.08 509,143,496.61 605,182,860.65 514,185,273.18
Net profit attributable to
24,282,056.99 10,736,085.37 20,090,608.28 7,431,145.53
shareholders of the Company
Net profit attributable to
shareholders of the Company 24,946,954.15 3,563,547.46 19,718,706.88 8,606,357.79
before exceptional profit and loss
Net cash flows from operating
-5,947,696.22 123,983,609.51 -46,874,591.45 28,312,622.20
activities
Indicate by tick mark whether there are any material differences between the financial indicators above or their
summations and those which have been disclosed in quarterly or semi-annual reports.
□ Yes √ No
IV Share capital and shareholders
1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as
shareholdings of top ten shareholders
Unit: share
Total number Total number of
of common Total number preference
Total number
shareholders at of preference shareholders with
of common
the prior shareholders resumed voting
shareholders 49,929 50,464 0 0
month-end with resumed rights at the prior
at the
before the voting rights at month-end before
period-end
disclosure of the period-end the disclosure of
this Report this Report
Top 10 shareholders
Shareholdin Pledged or frozen shares
Total shares Number of
Nature of g
Name of shareholder held at the restricted
shareholder percentage Status Number
period-end shares held
(%)
State-owned Assets
Supervision and On behalf of
Administration Commission the 30.43% 170,845,236 0
of Changzhou Municipal government
People’s Government
Bosera Value Growth Fund Other 2.49% 14,000,000 0
Galaxy Futures Co.,
Ltd.-Galaxy Futures
Other 1.05% 5,915,274 0
Shengshi No. 2 Asset
Management Plan
China Construction
Bank-Bosera Value Growth Other 0.96% 5,400,000 0
No. 1 Fund
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Changchai Company, Limited Abstract of Annual Report 2016
Foreign
KGI Asia Limited 0.59% 3,324,845 0
corporation
Rongtong Capital-Industrial
Bank-Rongtong Capital
Other 0.56% 3,121,200 0
Rongteng No. 11 Asset
Management Plan
Bank of
Communications-Everbright
Pramerica State-owned Other 0.53% 2,950,000 0
Enterprise Reform Theme
Stock Fund
Zhong Ou Asset
Management-Bank of
China-Ping An Life
Insurance- Zhong Ou Asset
Other 0.34% 1,899,930 0
Management - Ping An Life
Insurance Entrusted
Investment No. 1 Asset
Management Plan
Domestic
Li Liang 0.33% 1,827,445 0
individual
Vanguard Total International Foreign
0.29% 1,626,592 0
Stock Index Fund corporation
It is unknown whether there is among the top 10 tradable
shareholders and the top 10 non-restrictedly tradable shareholders
Related or acting-in-concert parties among
any related parties or acting-in-concert parties as defined in the
the shareholders above
Administrative Measures for Information Regarding Shareholding
Alteration.
Shareholder Li Liang held a total of 1,827,445 shares in the
Shareholders conducting securities margin Company, representing a stake of 0.33%, through the client account
trading of collateral securities for margin trading of Ping An Securities Co.,
Limited.
2. Number of preference shareholders and shareholdings of top ten of them
□ Applicable √ Not applicable
No preference shareholders in this Reporting Period.
3. Ownership and control relations between the actual controller and the Company
STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION
COMMISSION OF CHANGZHOU MUNICIPAL PEOPLE’S GOVERNMENT
30.43%
CHANGCHAI COMPANY, LIMITED
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Changchai Company, Limited Abstract of Annual Report 2016
V Performance discussion and analysis
1. Performance review for this Reporting Period
In the year 2016, facing difficulties such as the continuous downward trend of the macro-economy, stricter
emission laws and regulations, and the enormous pressure from safety and environmental protection requirements,
we took core competitiveness improvement as the most important measure, by speeding product upgrades,
optimizing the product structure, improving product quality, continuously promoting important technological
transformation projects, making full use of the resource advantage, seizing opportunities in domestic and overseas
markets, and expanding the advantages of superior products and business segments. As a result, we managed to
maintain a stable and orderly development.
In 2016, we sold about 724,400 engines and engine units, of which about 116,600 were multi-cylinder
engines, and about 607,800 are single-cylinder engines. We exported about 124,600 engines and engine units; and
we achieved sales revenue of RMB2.283 billion, a yearly decline of 9.4%. The net profit attributable to
shareholders of the Company was RMB62.5714 million, a yearly decline of 12.00%. Under the grim overall
situation of the national small diesel engine industry, although our company's total sales of products went down
from last year, our overall market share was stable, maintaining a leading position in the industry.
In terms of single-cylinder engines, our company adapted to new changes in the market, stabilize the main
supporting enterprise market share, integrate A dealer team and continuously promote the secondary network
construction. At the same time, we also accelerated the pace of product and market structure optimization,
increased the proportion of superior products, and fully involved in bidding projects and the development of key
customers.
Concerning multi-cylinder engines, on the one hand, our company stabilized the existing supporting system
to enhance the supporting market share, speed up the agricultural market support of 4G33 and 4L88 series of
middle and high ranking new products, as well as the promotion of resources of national standard III. Our
company also accelerated the support of end products such as light engines and rice transplanters, but the
supporting sales of commercial vehicles decreased significantly.
Facing a more severe situation of foreign trade market in the past two years, our company's export business
maintained stable and rapid development. Both export volume and export income of our company increased.
As for market service, we focused on national standard III training for product upgrades and service station
optimization, and continuously improved the service capacity of national standard III products. We made full use
of the Internet, visualization and other means to improve the terminal market service capabilities by following-up
and teamwork.
To sum up, in 2016, our company correctly grasped the industry trends, implemented targeted product
structure adjustment, and did a lot to positively and effectively promote product upgrades. On the one hand, the
upgrade of single multi-cylinder products to national standard III was basically completed. The technical route
was recognized by the market and got an advantage in the development of the industry. On the other hand, the
product structure adjustment achieved initial success. New key profitable products increased significantly, making
good preparation for the new development of the company.
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Changchai Company, Limited Abstract of Annual Report 2016
2. Significant changes in the main business in this Reporting Period
□ Yes √ No
3. Products contributing over 10% of the main business revenue or profit
√ Applicable □ Not applicable
Unit: RMB
Operating Operating Gross profit
Operating Gross profit
Product Operating profit revenue: YoY profit: YoY margin: YoY
revenue margin
+/-% +/-% +/-%
Diesel engines 2,258,400,410.51 408,574,378.75 18.09% -9.49% 1.92% 2.02%
4. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes √ No
5. Significant YoY changes in the operating revenues, operating costs and net profit attributable to the
common shareholders or their composition
□ Applicable √ Not applicable
6. Possibility of listing suspension or termination
□ Applicable √ Not applicable
VI Issues related to the financial report
1. YoY changes in accounting policies, accounting estimations and measurement methods
□ Applicable √ Not applicable
No changes.
2. Retroactive restatements due to correction of significant accounting errors in this Reporting Period
□ Applicable √ Not applicable
No such cases.
3. YoY changes in the scope of the consolidated financial statements
□ Applicable √ Not applicable
No changes.
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Changchai Company, Limited Abstract of Annual Report 2016
4. Explanation by the Board of Directors and the Supervisory Board concerning the “auditor’s report with
modified opinion” issued by the CPAs firm for the Company in the Reporting Period
□ Applicable √ Not applicable
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