Changchai Company, Limited First Quarter Report 2019
Stock code: 000570, 200570 Stock abbreviation: Su Changchai , Su Changchai-B Announcement No.: 2019-017
CHANGCHAI COMPANY, LIMITED
THE FIRST QUARTERLY REPORT FOR YEAR 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Changchai Company, Limited (hereinafter referred to as the
“Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this
Report and its summary, and shall be jointly and severally liable for any misrepresentations,
misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report and
its summary.
Shi Xinkun, the Company’s legal representative, Zhang Xin, the Company’s General Manager,
and Jiang He, head of the Company’s financial department (equivalent to financial manager) hereby
guarantee that the Financial Statements carried in this Report are factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there be
any discrepancies or misunderstandings between the two versions, the Chinese versions shall
prevail.
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Changchai Company, Limited First Quarter Report 2019
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2019 Q1 2018 Change (%)
Operating revenue (RMB) 557,670,611.48 593,008,785.46 -5.96%
Net profit attributable to the listed company’s
2,518,025.10 11,343,577.44 -77.80%
shareholders (RMB)
Net profit attributable to the listed company’s
1,083,678.62 11,141,982.06 -90.27%
shareholders before exceptional items (RMB)
Net cash generated from/used in operating
-63,832,631.41 -73,259,277.76 ——
activities (RMB)
Basic earnings per share (RMB/share) 0.0045 0.0202 -77.72%
Diluted earnings per share (RMB/share) 0.0045 0.0202 -77.72%
Weighted average return on equity (%) 0.13% 0.51% -0.38%
31 March 2019 31 December 2018 Change (%)
Total assets (RMB) 3,647,312,419.27 3,542,019,195.75 2.97%
Equity attributable to the listed company’s
2,127,447,301.84 2,043,308,026.74 4.12%
shareholders (RMB)
Nonrecurring gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
984,535.95
allowance write-offs)
Government subsidies charged to current profit and loss (exclusive of
government subsidies given in the Company’s ordinary course of
129,300.00
business at fixed quotas or amounts as per government’s uniform
standards )
Gain or loss on fair-value changes in trading financial assets and
liabilities and derivative financial assets and liabilities & investment
income from disposal of trading financial assets and liabilities and 115,280.60
derivative financial assets and liabilities, and other creditors’
investment (exclusive of effective portion of hedges that arise in the
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Changchai Company, Limited First Quarter Report 2019
Company’s ordinary course of business)
Non-operating income and expense other than the above 432,639.69
Less: Income tax effects 223,748.22
Non-controlling interests effects (net of tax) 3,661.54
Total 1,434,346.48 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of ordinary Number of preferred shareholders with resumed
57,411 0
shareholders at the period-end voting rights at the period-end (if any)
Top 10 shareholders
Shares in pledge
Shareholding Total shares Restricted
Name of shareholder Nature of shareholder or frozen
percentage held shares held
Status Shares
Changzhou Investment State-owned legal
30.43% 170,845,236 0
Group Co., Ltd person
KGI Asia Limited Foreign legal person 0.57% 3,189,845 0
Domestic natural
Huang Guoliang 0.27% 1,528,891 0
person
Domestic natural
Hu Wenyong 0.27% 1,503,566 0
person
Domestic natural
Li Suinan 0.27% 1,492,200 0
person
Domestic natural
Tao Xiaofang 0.22% 1,240,000 0
person
Vanguard Investment
Australia Co., Foreign legal person 0.21% 1,196,785 0
Ltd—Vanguard Emerging
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Changchai Company, Limited First Quarter Report 2019
Market Stock Index
(Exchange)
Domestic natural
Xue Hong 0.21% 1,180,000 0
person
Domestic natural
Xie Deqing 0.20% 1,115,000 0
person
Central Huijin Asset State-owned legal
0.20% 1,107,900 0
Management Co., Ltd. person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
RMB-denominated
Changzhou Investment Group Co., Ltd 170,845,236 170,845,236
ordinary stock
Domestically listed
KGI Asia Limited 3,189,845 3,189,845
foreign stock
Domestically listed
Huang Guoliang 1,528,891 1,528,891
foreign stock
Domestically listed
Hu Wenyong 1,503,566 1,503,566
foreign stock
Domestically listed
Li Suinan 1,492,200 1,492,200
foreign stock
RMB-denominated
Tao Xiaofang 1,240,000 1,240,000
ordinary stock
Vanguard Investment Australia Co.,
RMB-denominated
Ltd—Vanguard Emerging Market Stock Index 1,196,785 1,196,785
ordinary stock
(Exchange)
Domestically listed
Xue Hong 1,180,000 1,180,000
foreign stock
Domestically listed
Xie Deqing 1,115,000 1,115,000
foreign stock
RMB-denominated
Central Huijin Asset Management Co., Ltd. 1,107,900 1,107,900
ordinary stock
It is unknown whether there is among the top 10 public
shareholders and the top 10 unrestricted public shareholders any
Related or acting-in-concert parties among the
related parties or acting-in-concert parties as defined in the
shareholders above
Administrative Measures for Information Regarding
Shareholding Alteration.
Top 10 ordinary shareholders involved in
N/A
securities margin trading (if any)
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Changchai Company, Limited First Quarter Report 2019
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Changchai Company, Limited First Quarter Report 2018
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Accounts receivable increased by RMB263,286,355.77, or 69.49%, as of 31 March 2019 compared to 31
December 2018, primarily because the Company properly allowed customers’ buying on credit for more markets
in Q1 2019 and multi-cylinder diesel engine customers are mainly supporting companies of main engine , which
are usually given longer payment days.
2. Other current assets decreased by RMB16,089,662.06, or 46.83%, as of 31 March 2019 compared to 31
December 2018, mainly because excess VAT paid of the Company decreased, and part of bank financial products
of subsidiaries expired in the Reporting Period.
3. Advances from customers increased by RMB11,615,302.19, or 33.67%, as of 31 March 2019 compared to 31
December 2018, mainly driven by the increase of advances from customers.
4. Payroll payable decreased by RMB20,613,167.11, or 40.82%, as of 31 March 2019 compared to 31 December
2018, mainly because accrued salary and bonus in last period was partially paid in this period.
5. Deferred income tax liabilities increased by RMB14,559,591.18, or 30.35%, as of 31 March 2019 compared to
31 December 2018, mainly because the fair value of financial assets held by the Company rose in the Reporting
Period with the corresponding increase of deferred income tax liabilities.
6. Taxes payable decreased by RMB2,697,983.77, or 38.18%, as of 31 March 2019 compared to 31 December
2018, mainly driven by the decrease of taxes payable of the Company in the Reporting Period.
7. Other comprehensive income increased by RMB81,621,250.00, or 30.87%, as of 31 March 2019 compared to
31 December 2018, mainly because the fair value of financial assets held by the Company rose with the
corresponding increase of other comprehensive income.
8. Finance costs went down by RMB1,202,648.06, or 33.97%, during Q1 2019 compared to Q1 2018, primarily
driven by the changes in net foreign exchange gains and losses resulted from exchange rate fluctuations in Q1
2019.
9. Assets impairment loss rose by RMB6,247,186.29 during Q1 2019 compared to Q1 2018, primarily due to the
increase of accounts receivable and the provision made for bad debt in Q1 2019.
10. Net profit attributable to owners of the Company as the parent went down by RMB8,825,552.34, or 77.80%,
during Q1 2019 compared to Q1 2018, primarily because production and sales volume, and sales revenue
decreased during Q1 2019 compared to Q1 2018 resulted from the fierce market competition in the Reporting
Period, which resulted to an obvious loss of income from core business.
11. Net cash generated from investing activities went down by RMB7,366,971.55, or 37.02%, during Q1 2019
compared to Q1 2018, primarily because the payment for building fixed assets, intangible assets, and other
long-term assets decreased in Q1 2019.
II Progress, Influence and Solutions with regard to Significant Events
□ Applicable √ Not applicable
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Changchai Company, Limited First Quarter Report 2018
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as
explanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain
Cum
/loss
ulati
on
Acco ve Purc Gain
fair Sold
Initia untin Begi fair hase /loss
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the Perio value
t cost mode value ded Perio Perio
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Perio
y
d
Inves
tmen
Fair ts in
41,7 262, 75,1 251, 338, Self-
value other
Stoc 6001 FOT 84,0 990, 40,0 894, 130, owne
meas 0.00 0.00 0.00 equit
k 66 ON 00.0 000. 00.0 100. 000. d
urem y
0 00 0 00 00 funds
ent instr
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Stoc 6009 Bank 18,0 Fair 107, 20,8 93,7 0.00 0.00 0.00 128, Inves Self-
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Changchai Company, Limited First Quarter Report 2018
k 19 of 00,0 value 460, 80,0 89,0 340, tmen owne
Jiang 00.0 meas 000. 00.0 00.0 000. ts in d
su 0 urem 00 0 0 00 other funds
ent equit
y
instr
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Inves
tmen
Jiang Fair ts in
Self-
su 90,5 value 490, 343, 495, other
Stoc 6003 5,00 owne
Expr 00.0 meas 000. 825. 0.00 0.00 0.00 000. equit
k 77 0.00 d
essw 0 urem 00 00 00 y
funds
ay ent instr
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nts
Other securities
investments held as 0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
at the Period-end
59,8 370, 96,0 346, 466,
74,5 940, 25,0 026, 965,
Total -- 0.00 0.00 0.00 -- --
00.0 000. 00.0 925. 000.
0 00 0 00 00
Disclosure date of
announcement on
Board’s consent for
securities investment
Disclosure date of
announcement on
shareholders’
meeting’s consent for
securities investment
(if any)
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Changchai Company, Limited First Quarter Report 2018
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Way of Type of
Date communica communicati Index to main information communicated
tion on party
28 March 2019 Other Individual Equity incentive of the Company
28 March 2019 Other Individual Equity investment of the Company
28 March 2019 Other Individual Operations of the Company
Progress and shareholding of projects invested by the
27 March 2019 Other Individual
Company
Operations of the Company’s joint stock companies via
21 March 2019 Other Individual
investments
21 March 2019 Other Individual Brand value and market value of the Company
Whether Union Test, the Company’s subsidiary
19 March 2019 Other Individual
participated in, planned to be listed
Whether the Company participates in Xinguang
18 March 2019 Other Individual
Photoelectric through investment
The Company participates in Xinguang Photoelectric
18 March 2019 Other Individual
through investment
That the Company participates in Xinguang
14 March 2019 Other Individual
Photoelectric through investment is not true
Key tasks of the Company regarding reform and
10 March 2019 Other Individual
development in this year
Inquired the reform of state-owned enterprises toward
10 March 2019 Other Individual
mixed system
Inquired the reform of state-owned enterprises toward
8 March 2019 Other Individual
mixed system
5 March 2019 Other Individual Transformation and upgrading of the Company
The Company purchased the land use right of
25 February 2019 Other Individual
Changzhou High-Tech Zone
Weaknesses of the Company compared with other
25 February 2019 Other Individual
companies
Progress of Lithium Battery Diaphragm Project
25 February 2019 Other Individual invested by the industrial fund the Company
participates in the establishment
Disclosure of the Company’s operating performance
2 February 2019 Other Individual
forecast
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Changchai Company, Limited First Quarter Report 2018
1 February 2019 Other Individual The Company’s new year’s wishes to investors
31 January 2019 Other Individual Investors’ vision for the Company
Support to the Company provided by the Company’s
25 January 2019 Other Individual
controlling shareholders
The Company’s layout of hydrogen-based fuel-cell
25 January 2019 Other Individual
engine business
Sales of shares of Bank of Jiangsu held by the
25 January 2019 Other Individual
Company
24 January 2019 Other Individual Products of the Company
24 January 2019 Other Individual Efforts of the Company in response to policies
24 January 2019 Other Individual Condition of the industry the Company belongs to
Progress of Lithium Battery Diaphragm Project
23 January 2019 Other Individual invested by the industrial fund the Company
participates in the establishment
23 January 2019 Other Individual The Company’s investment in new energy industry
13 January 2019 Other Individual Government subsidies the Company received
Disclosure condition of the Company’s operating
11 January 2019 Other Individual
performance forecast
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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