Changchai Company, Limited First Quarter Report 2019
CHANGCHAI COMPANY, LIMITED
FIRST QUARTER REPORT 2019
30 April 2019
1
Changchai Company, Limited First Quarter Report 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.
2
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)
Exceptional 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
4
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)
5
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
6
Changchai Company, Limited First Quarter Report 2019
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 2019
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
value in Endi
Varie Code Nam l g nnin value d in in Acco Capit
chan the ng
ty of of e of meas g chan the the untin al
inves ges Repo carry
secur secur secur urem carry ges Repo Repo g resou
in rting ing
ities ities ities tmen ent ing recor rting rting item rces
the Perio value
t cost mode value ded Perio Perio
Repo d
l into d d
rting
equit
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
ume
nts
Stoc 6009 Bank 18,0 Fair 107, 20,8 93,7 0.00 0.00 0.00 128, Inves Self-
8
Changchai Company, Limited First Quarter Report 2019
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
ume
nts
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
ume
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.
9
Changchai Company, Limited First Quarter Report 2019
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
10
Changchai Company, Limited First Quarter Report 2019
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.
11
Changchai Company, Limited First Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company, Limited
31 March 2019
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 659,396,261.80 800,960,036.69
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable 1,107,119,659.73 874,229,941.58
Including: Notes receivable 437,037,772.68 495,370,782.47
Accounts receivable 642,145,514.88 378,859,159.11
Prepayments 13,232,719.77 11,352,297.10
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 11,863,925.52 9,244,584.42
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 511,685,689.73 557,953,891.70
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 18,267,946.91 34,357,608.97
Total current assets 2,321,566,203.46 2,288,098,360.46
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Changchai Company, Limited First Quarter Report 2019
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 498,851,369.49
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments
Investments in other equity instruments 594,876,369.49
Other non-current financial assets
Investment property 50,103,922.43 50,656,007.63
Fixed assets 495,840,203.67 511,250,371.37
Construction in progress 81,775,335.52 89,090,384.71
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 102,170,561.99 103,092,879.38
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 979,822.71 979,822.71
Other non-current assets
Total non-current assets 1,325,746,215.81 1,253,920,835.29
Total assets 3,647,312,419.27 3,542,019,195.75
Current liabilities:
Short-term borrowings 27,000,000.00 27,000,000.00
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes and accounts payable 1,032,213,274.91 1,030,130,275.77
Advances from customers 46,115,535.16 34,500,232.97
Financial assets sold under repurchase agreements
13
Changchai Company, Limited First Quarter Report 2019
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Payroll payable 29,887,425.88 50,500,592.99
Taxes payable 4,368,102.12 7,066,085.89
Other payables 214,757,711.70 199,412,250.90
Including: Interest payable 0.00 0.00
Dividends payable 3,891,433.83 3,891,433.83
Handling charges and commissions payable
Reinsurance payables
Contractual liabilities
Liabilities directly associated with assets classified as held
for sale
Current portion of non-current liabilities 18,500,000.00 18,500,000.00
Other current liabilities 2,895,716.82 2,082,985.18
Total current liabilities 1,375,737,766.59 1,369,192,423.70
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 2,000,000.00 2,000,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 59,928,484.84 59,928,484.84
Deferred income tax liabilities 62,531,371.54 47,971,780.36
Other non-current liabilities
Total non-current liabilities 124,459,856.38 109,900,265.20
Total liabilities 1,500,197,622.97 1,479,092,688.90
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Including: Preferred shares
14
Changchai Company, Limited First Quarter Report 2019
Perpetual bonds
Capital reserves 164,328,665.43 164,328,665.43
Less: Treasury stock
Other comprehensive income 346,026,925.00 264,405,675.00
Specific reserve 15,182,958.83 15,182,958.83
Surplus reserves 320,133,050.15 320,133,050.15
General reserve
Retained earnings 720,401,376.43 717,883,351.33
Total equity attributable to owners of the Company as the
2,127,447,301.84 2,043,308,026.74
parent
Non-controlling interests 19,667,494.46 19,618,480.11
Total owners’ equity 2,147,114,796.30 2,062,926,506.85
Total liabilities and owners’ equity 3,647,312,419.27 3,542,019,195.75
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
15
Changchai Company, Limited First Quarter Report 2019
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 614,298,184.21 759,404,219.72
Trading financial assets
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable 1,021,321,136.46 790,877,079.72
Including: Notes receivable 428,324,252.68 490,519,795.91
Accounts receivable 592,996,883.78 300,357,283.81
Prepayments 5,315,580.26 4,768,038.11
Other receivables 25,179,716.80 21,681,331.85
Including: Interest receivable 0.00 0.00
Dividends receivable 0.00 0.00
Inventories 383,455,086.73 437,423,195.46
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 4,565,051.78 23,099,858.67
Total current assets 2,054,134,756.24 2,037,253,723.53
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 470,940,000.00
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 251,752,730.03 241,752,730.03
Investments in other equity instruments 566,965,000.00
Other non-current financial assets
Investment property 50,103,922.43 50,656,007.63
Fixed assets 397,386,621.16 413,186,680.19
Construction in progress 79,692,166.72 87,007,215.91
Productive living assets
16
Changchai Company, Limited First Quarter Report 2019
Oil and gas assets
Right-of-use assets
Intangible assets 71,483,632.39 72,184,608.63
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 930,641.19 930,641.19
Other non-current assets
Total non-current assets 1,418,314,713.92 1,336,657,883.58
Total assets 3,472,449,470.16 3,373,911,607.11
Current liabilities:
Short-term borrowings 10,000,000.00 10,000,000.00
Trading financial liabilities
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes and accounts payable 985,392,630.66 987,550,797.44
Advances from customers 43,003,437.16 32,072,387.55
Contractual liabilities
Payroll payable 24,202,486.14 43,597,759.22
Taxes payable 1,162,793.09 2,443,767.89
Other payables 197,158,844.89 185,022,961.56
Including: Interest payable 0.00 0.00
Dividends payable 3,243,179.97 3,243,179.97
Liabilities directly associated with assets classified as held
for sale
Current portion of non-current liabilities 18,500,000.00 18,500,000.00
Other current liabilities
Total current liabilities 1,279,420,191.94 1,279,187,673.66
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
17
Changchai Company, Limited First Quarter Report 2019
Long-term payroll payable
Provisions
Deferred income 59,928,484.84 59,928,484.84
Deferred income tax liabilities 61,063,575.00 46,659,825.00
Other non-current liabilities
Total non-current liabilities 120,992,059.84 106,588,309.84
Total liabilities 1,400,412,251.78 1,385,775,983.50
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 183,071,147.70 183,071,147.70
Less: Treasury stock
Other comprehensive income 346,026,925.00 264,405,675.00
Specific reserve 15,182,958.83 15,182,958.83
Surplus reserves 320,133,050.15 320,133,050.15
Retained earnings 646,248,810.70 643,968,465.93
Total owners’ equity 2,072,037,218.38 1,988,135,623.61
Total liabilities and owners’ equity 3,472,449,470.16 3,373,911,607.11
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
18
Changchai Company, Limited First Quarter Report 2019
3. Consolidated Income Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Revenue 557,670,611.48 593,008,785.46
Including: Operating revenue 557,670,611.48 593,008,785.46
Interest income
Premium income
Handling charge and commission income
2. Costs and expenses 555,707,887.60 579,389,265.96
Including: Cost of sales 490,367,392.94 514,583,143.24
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 2,586,596.10 2,841,402.82
Selling expense 25,812,066.86 27,010,594.06
Administrative expense 14,279,960.47 15,887,370.14
R&D expense 14,077,360.88 15,526,783.58
Finance costs 2,337,324.06 3,539,972.12
Including: Interest expense 813,946.55 645,225.08
Interest income 1,405,261.21 986,542.32
Asset impairment loss 6,247,186.29
Credit impairment loss
Add: Other income 129,300.00
Return on investment (“-” for loss) 115,280.60 64,096.56
Including: Share of profit or loss of joint ventures and
associates
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss)
Asset disposal income (“-” for loss) 984,535.95
3. Operating profit (“-” for loss) 3,191,840.43 13,683,616.06
19
Changchai Company, Limited First Quarter Report 2019
Add: Non-operating income 452,748.32 1,674,474.55
Less: Non-operating expense 20,108.63 1,524,616.21
4. Profit before tax (“-” for loss) 3,624,480.12 13,833,474.40
Less: Income tax expense 1,057,440.67 2,294,565.22
5. Net profit (“-” for net loss) 2,567,039.45 11,538,909.18
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 2,567,039.45 11,538,909.18
5.1.2 Net profit from discontinued operations ( -” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the
2,518,025.10 11,343,577.44
parent
5.2.2 Net profit attributable to non-controlling interests 49,014.35 195,331.74
6. Other comprehensive income, net of tax 81,621,250.00 -36,596,325.00
Attributable to owners of the Company as the parent 81,621,250.00 -36,596,325.00
6.1 Items that will not be reclassified to profit or loss 81,621,250.00
6.1.1 Changes caused by remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other equity
81,621,250.00
instruments
6.1.4 Changes in the fair value of the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -36,596,325.00
6.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method
6.2.2 Changes in the fair value of investments in other debt
obligations
6.2.3 Gain/Loss on changes in the fair value of
-36,596,325.00
available-for-sale financial assets
6.2.4 Other comprehensive income arising from the
reclassification of financial assets
6.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial assets
6.2.6 Allowance for credit impairments in investments in
other debt obligations
6.2.7 Reserve for cash flow hedges
6.2.8 Differences arising from the translation of foreign
currency-denominated financial statements
20
Changchai Company, Limited First Quarter Report 2019
6.2.9 Other
Attributable to non-controlling interests
7. Total comprehensive income 84,188,289.45 -25,057,415.82
Attributable to owners of the Company as the parent 84,139,275.10 -25,252,747.56
Attributable to non-controlling interests 49,014.35 195,331.74
8. Earnings per share
8.1 Basic earnings per share 0.0045 0.0202
8.2 Diluted earnings per share 0.0045 0.0202
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
21
Changchai Company, Limited First Quarter Report 2019
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Operating revenue 517,869,769.55 546,106,384.32
Less: Cost of sales 460,358,879.40 478,947,398.52
Taxes and surcharges 2,027,946.33 2,016,404.51
Selling expense 23,691,858.67 24,722,755.12
Administrative expense 9,526,479.22 10,787,074.70
R&D expense 13,521,905.65 15,526,783.58
Finance costs 1,105,188.53 1,660,143.55
Including: Interest expense 558,794.31 375,425.98
Interest income 1,325,616.24 650,882.58
Asset impairment loss 6,247,186.29
Credit impairment loss
Add: Other income 129,300.00
Return on investment (“-” for loss)
Including: Share of profit or loss of joint ventures and
associates
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss)
Asset disposal income (“-” for loss) 984,535.95
2. Operating profit (“-” for loss) 2,504,161.41 12,445,824.34
Add: Non-operating income 187,691.12 1,339,652.51
Less: Non-operating expense 9,093.98 1,523,958.21
3. Profit before tax (“-” for loss) 2,682,758.55 12,261,518.64
Less: Income tax expense 402,413.78 1,839,227.80
4. Net profit (“-” for net loss) 2,280,344.77 10,422,290.84
4.1 Net profit from continuing operations (“-” for net loss) 2,280,344.77 10,422,290.84
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax 81,621,250.00 -36,596,325.00
5.1 Items that will not be reclassified to profit or loss 81,621,250.00
5.1.1 Changes caused by remeasurements on defined
benefit pension schemes
5.1.2 Other comprehensive income that will not be
22
Changchai Company, Limited First Quarter Report 2019
reclassified to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other
81,621,250.00
equity instruments
5.1.4 Changes in the fair value of the company’s credit
risks
5.1.5 Other
5.2 Items that will be reclassified to profit or loss -36,596,325.00
5.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Gain/Loss on changes in the fair value of
-36,596,325.00
available-for-sale financial assets
5.2.4 Other comprehensive income arising from the
reclassification of financial assets
5.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial
assets
5.2.6 Allowance for credit impairments in investments in
other debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the translation of foreign
currency-denominated financial statements
5.2.9 Other
6. Total comprehensive income 83,901,594.77 -26,174,034.16
7. Earnings per share
7.1 Basic earnings per share 0.0041 0.0186
7.2 Diluted earnings per share 0.0041 0.0186
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
23
Changchai Company, Limited First Quarter Report 2019
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
385,993,156.10 439,612,228.47
services
Net increase in customer deposits and interbank deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Net increase in proceeds from disposal of financial assets
at fair value through profit or loss
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax rebates 13,338,440.09 17,753,037.91
Cash generated from other operating activities 5,026,831.34 3,702,330.49
Subtotal of cash generated from operating activities 404,358,427.53 461,067,596.87
Payments for commodities and services 345,226,371.02 406,939,946.87
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in
interbank loans granted
Payments for claims on original insurance contracts
Net increase in financial assets held for trading purposes
Net increase in interbank loans granted
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 87,234,321.19 92,450,068.47
Taxes paid 8,260,325.27 9,951,419.10
Cash used in other operating activities 27,470,041.46 24,985,440.19
Subtotal of cash used in operating activities 468,191,058.94 534,326,874.63
Net cash generated from/used in operating activities -63,832,631.41 -73,259,277.76
24
Changchai Company, Limited First Quarter Report 2019
2. Cash flows from investing activities:
Proceeds from disinvestment 4,000,000.00 2,000,000.00
Return on investment 115,280.60 64,096.56
Net proceeds from the disposal of fixed assets, intangible
1,001,035.95 198,255.47
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 5,116,316.55 2,262,352.03
Payments for the acquisition of fixed assets, intangible
7,647,974.81 9,895,537.64
assets and other long-lived assets
Payments for investments 10,000,000.00 4,265,444.20
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 8,000,000.00
Subtotal of cash used in investing activities 17,647,974.81 22,160,981.84
Net cash generated from/used in investing activities -12,531,658.26 -19,898,629.81
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-controlling
interests to subsidiaries
Borrowings obtained 7,000,000.00 1,800,000.00
Net proceeds from the issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities 7,000,000.00 1,800,000.00
Repayments of borrowings 7,000,000.00
Payments for interest and dividends 813,946.55 645,225.08
Including: Dividends paid by subsidiaries to
non-controlling interests
Cash used in other financing activities
Subtotal of cash used in financing activities 7,813,946.55 645,225.08
Net cash generated from/used in financing activities -813,946.55 1,154,774.92
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -77,178,236.22 -92,003,132.65
Add: Cash and cash equivalents, beginning of the period 687,079,639.59 325,263,654.43
25
Changchai Company, Limited First Quarter Report 2019
6. Cash and cash equivalents, end of the period 609,901,403.37 233,260,521.78
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
26
Changchai Company, Limited First Quarter Report 2019
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 350,605,925.78 383,944,530.99
Tax rebates 10,449,706.25 14,412,296.14
Cash generated from other operating activities 2,573,315.54 2,985,456.36
Subtotal of cash generated from operating activities 363,628,947.57 401,342,283.49
Payments for commodities and services 321,914,661.45 360,203,288.81
Cash paid to and for employees 74,643,724.56 80,778,231.12
Taxes paid 4,780,770.52 6,738,039.59
Cash used in other operating activities 20,159,658.65 20,149,380.94
Subtotal of cash used in operating activities 421,498,815.18 467,868,940.46
Net cash generated from/used in operating activities -57,869,867.61 -66,526,656.97
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of fixed assets, intangible
984,535.95 16,700.00
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 984,535.95 16,700.00
Payments for the acquisition of fixed assets, intangible assets
5,500,496.74 8,205,480.04
and other long-lived assets
Payments for investments 10,000,000.00
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 15,500,496.74 8,205,480.04
Net cash generated from/used in investing activities -14,515,960.79 -8,188,780.04
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Net proceeds from the issuance of bonds
27
Changchai Company, Limited First Quarter Report 2019
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayments of borrowings
Payments for interest and dividends 558,794.31 375,425.98
Cash used in other financing activities
Subtotal of cash used in financing activities 558,794.31 375,425.98
Net cash generated from/used in financing activities -558,794.31 -375,425.98
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -72,944,622.71 -75,090,862.99
Add: Cash and cash equivalents, beginning of the period 651,854,206.79 272,064,464.71
6. Cash and cash equivalents, end of the period 578,909,584.08 196,973,601.72
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated balance sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary capital 800,960,036.69 800,960,036.69
Settlement reserve
Interbank loans granted
Trading financial assets N/A
Financial assets at fair value through
N/A
profit or loss
Derivative financial assets
Notes and accounts receivable 874,229,941.58 874,229,941.58
Including: Notes receivable 495,370,782.47 495,370,782.47
Accounts receivable 378,859,159.11 378,859,159.11
Prepayments 11,352,297.10 11,352,297.10
Premiums receivable
Reinsurance receivables
28
Changchai Company, Limited First Quarter Report 2019
Receivable reinsurance contract reserve
Other receivables 9,244,584.42 9,244,584.42
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 557,953,891.70 557,953,891.70
Contractual assets N/A
Assets classified as held for sale
Current portion of non-current assets
Other current assets 34,357,608.97 34,357,608.97
Total current assets 2,288,098,360.46 2,288,098,360.46
Non-current assets:
Loans and advances to customers
Investments in debt obligations N/A
Available-for-sale financial assets 498,851,369.49 N/A -498,851,369.49
Investments in other debt obligations N/A
Held-to-maturity investments N/A
Long-term receivables
Long-term equity investments
Investments in other equity instruments N/A 498,851,369.49 498,851,369.49
Other non-current financial assets N/A
Investment property 50,656,007.63 50,656,007.63
Fixed assets 511,250,371.37 511,250,371.37
Construction in progress 89,090,384.71 89,090,384.71
Productive living assets
Oil and gas assets
Right-of-use assets N/A
Intangible assets 103,092,879.38 103,092,879.38
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 979,822.71 979,822.71
Other non-current assets
Total non-current assets 1,253,920,835.29 1,253,920,835.29
29
Changchai Company, Limited First Quarter Report 2019
Total assets 3,542,019,195.75 3,542,019,195.75
Current liabilities:
Short-term borrowings 27,000,000.00 27,000,000.00
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities N/A
Financial liabilities at fair value through
N/A
profit or loss
Derivative financial liabilities
Notes and accounts payable 1,030,130,275.77 1,030,130,275.77
Advances from customers 34,500,232.97 34,500,232.97
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Payroll payable 50,500,592.99 50,500,592.99
Taxes payable 7,066,085.89 7,066,085.89
Other payables 199,412,250.90 199,412,250.90
Including: Interest payable 0.00 0.00
Dividends payable 3,891,433.83 3,891,433.83
Handling charges and commissions
payable
Reinsurance payables
Contractual liabilities N/A
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current liabilities 18,500,000.00 18,500,000.00
Other current liabilities 2,082,985.18 2,082,985.18
Total current liabilities 1,369,192,423.70 1,369,192,423.70
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 2,000,000.00 2,000,000.00
Bonds payable
Including: Preferred shares
30
Changchai Company, Limited First Quarter Report 2019
Perpetual bonds
Lease liabilities N/A
Long-term payables
Long-term payroll payable
Provisions
Deferred income 59,928,484.84 59,928,484.84
Deferred income tax liabilities 47,971,780.36 47,971,780.36
Other non-current liabilities
Total non-current liabilities 109,900,265.20 109,900,265.20
Total liabilities 1,479,092,688.90 1,479,092,688.90
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 164,328,665.43 164,328,665.43
Less: Treasury stock
Other comprehensive income 264,405,675.00 264,405,675.00
Specific reserve 15,182,958.83 15,182,958.83
Surplus reserves 320,133,050.15 320,133,050.15
General reserve
Retained earnings 717,883,351.33 717,883,351.33
Total equity attributable to owners of the
2,043,308,026.74 2,043,308,026.74
Company as the parent
Non-controlling interests 19,618,480.11 19,618,480.11
Total owners’ equity 2,062,926,506.85 2,062,926,506.85
Total liabilities and owners’ equity 3,542,019,195.75 3,542,019,195.75
Notes to adjustment
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedge Accounting and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments in 2017, and required all
domestically listed companies to implement since 1 January 2019. In accordance with the provisions of the
standards, as for the financial instruments not derecognized as of the implementation date, retrospective
adjustment shall be made when the recognition and measurement before the revision don’t conform to the
requirements of the revised standards. It is unnecessary to make adjustment when data of previous comparative
financial statements don’t conform to the requirements of the revised standards.
31
Changchai Company, Limited First Quarter Report 2019
The Company starts to carry out the new financial instrument standards since 1 January 2019, and classifies
the financial assets originally recorded in available-for-sale financial assets into financial assets at fair value
through other comprehensive income which will be presented as investment in other equity instruments in
financial statements.
Balance sheet of the Company as the parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary capital 759,404,219.72 759,404,219.72
Trading financial assets N/A
Financial assets at fair value
N/A
through profit or loss
Derivative financial assets
Notes and accounts receivable 790,877,079.72 790,877,079.72
Including: Notes receivable 490,519,795.91 490,519,795.91
Accounts
300,357,283.81 300,357,283.81
receivable
Prepayments 4,768,038.11 4,768,038.11
Other receivables 21,681,331.85 21,681,331.85
Including: Interest
0.00 0.00
receivable
Dividends
0.00 0.00
receivable
Inventories 437,423,195.46 437,423,195.46
Contractual assets N/A
Assets classified as held for
sale
Current portion of non-current
assets
Other current assets 23,099,858.67 23,099,858.67
Total current assets 2,037,253,723.53 2,037,253,723.53
Non-current assets:
Investments in debt
N/A
obligations
Available-for-sale financial
470,940,000.00 N/A -470,940,000.00
assets
32
Changchai Company, Limited First Quarter Report 2019
Investments in other debt
N/A
obligations
Held-to-maturity investments N/A
Long-term receivables
Long-term equity investments 241,752,730.03 241,752,730.03
Investments in other equity
N/A 470,940,000.00 470,940,000.00
instruments
Other non-current financial
N/A
assets
Investment property 50,656,007.63 50,656,007.63
Fixed assets 413,186,680.19 413,186,680.19
Construction in progress 87,007,215.91 87,007,215.91
Productive living assets
Oil and gas assets
Right-of-use assets N/A
Intangible assets 72,184,608.63 72,184,608.63
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 930,641.19 930,641.19
Other non-current assets
Total non-current assets 1,336,657,883.58 1,336,657,883.58
Total assets 3,373,911,607.11 3,373,911,607.11
Current liabilities:
Short-term borrowings 10,000,000.00 10,000,000.00
Trading financial liabilities N/A
Financial liabilities at fair
N/A
value through profit or loss
Derivative financial liabilities
Notes and accounts payable 987,550,797.44 987,550,797.44
Advances from customers 32,072,387.55 32,072,387.55
Contractual liabilities N/A
Payroll payable 43,597,759.22 43,597,759.22
Taxes payable 2,443,767.89 2,443,767.89
Other payables 185,022,961.56 185,022,961.56
33
Changchai Company, Limited First Quarter Report 2019
Including: Interest payable 0.00
Dividends
3,243,179.97 3,243,179.97
payable
Liabilities directly associated
with assets classified as held for
sale
Current portion of non-current
18,500,000.00 18,500,000.00
liabilities
Other current liabilities
Total current liabilities 1,279,187,673.66 1,279,187,673.66
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities N/A
Long-term payables
Long-term payroll payable
Provisions
Deferred income 59,928,484.84 59,928,484.84
Deferred income tax liabilities 46,659,825.00 46,659,825.00
Other non-current liabilities
Total non-current liabilities 106,588,309.84 106,588,309.84
Total liabilities 1,385,775,983.50 1,385,775,983.50
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 183,071,147.70 183,071,147.70
Less: Treasury stock
Other comprehensive income 264,405,675.00 264,405,675.00
Specific reserve 15,182,958.83 15,182,958.83
Surplus reserves 320,133,050.15 320,133,050.15
Retained earnings 643,968,465.93 643,968,465.93
34
Changchai Company, Limited First Quarter Report 2019
Total owners’ equity 1,988,135,623.61 1,988,135,623.61
Total liabilities and owners’
3,373,911,607.11 3,373,911,607.11
equity
Notes to adjustment
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 22-Recognition and
Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 23-Transfer of
Financial Assets, Accounting Standards for Business Enterprises No. 24-Hedge Accounting and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments in 2017, and required all
domestically listed companies to implement since 1 January 2019. In accordance with the provisions of the
standards, as for the financial instruments not derecognized as of the implementation date, retrospective
adjustment shall be made when the recognition and measurement before the revision don’t conform to the
requirements of the revised standards. It is unnecessary to make adjustment when data of previous comparative
financial statements don’t conform to the requirements of the revised standards.
The Company starts to carry out the new financial instrument standards since 1 January 2019, and classifies
the financial assets originally recorded in available-for-sale financial assets into financial assets at fair value
through other comprehensive income which will be presented as investment in other equity instruments in
financial statements.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
Standards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
35
