Changchai Company, Limited Interim Report 2019 (Summary)
Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2019-028
CHANGCHAI COMPANY, LIMITED
INTERIM REPORT 2019 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2019 Interim Report of Changchai Company, Limited (together with
its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full
understanding of the Company’s operating results, financial condition and future development plans, investors
should carefully read the aforesaid full text, which has been disclosed together with this Summary on the media
designated by the China Securities Regulatory Commission (the “CSRC”).
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
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.
Part II Key Corporate Information
1. Stock Profile
Changchai,
Stock name Stock code 000570, 200570
Changchai-B
Stock exchange for stock listing Shenzhen Stock Exchange
Securities
Contact information Board Secretary
Representative
Name He Jianjiang
123 Huaide Middle Road, Changzhou,
Office address
Jiangsu, China
Tel. （86）519-68683155
E-mail address cchjj@changchai.com
1
Changchai Company, Limited Interim Report 2019 (Summary)
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2019 H1 2018 Change (%)
Operating revenue (RMB) 1,115,829,845.59 1,186,760,892.26 -5.98%
Net profit attributable to the listed
19,058,025.07 18,638,557.66 2.25%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 14,227,155.59 17,262,823.25 -17.59%
exceptional gains and losses (RMB)
Net cash generated from/used in
-154,227,704.77 -5,608,853.15 -
operating activities (RMB)
Basic earnings per share (RMB/share) 0.0339 0.0332 2.11%
Diluted earnings per share
0.0339 0.0332 2.11%
(RMB/share)
Weighted average return on equity (%) 0.97% 0.86% 0.11%
30 June 2019 31 December 2018 Change (%)
Total assets (RMB) 3,640,229,950.93 3,542,019,195.75 2.77%
Equity attributable to the listed
2,135,662,393.66 2,043,308,026.74 4.52%
company’s shareholders (RMB)
3. Shareholders and Their Holdings as at 30 June 2019
Unit: share
Number of preferred
Number of ordinary shareholders with
55,742 0
shareholders resumed voting rights (if
any)
Top 10 shareholders
Sharehol Shares in pledge or
Name of ding Number of Restricted frozen
Nature of shareholder
shareholder percenta shares shares
ge Status Shares
Changzhou
Investment Group State-owned legal person 30.43% 170,845,236
Co., Ltd
KGI Asia Limited Foreign legal person 0.57% 3,189,845
Huang Guoliang Domestic natural person 0.27% 1,528,891
Hu Wenyong Domestic natural person 0.27% 1,528,066
Li Suinan Domestic natural person 0.27% 1,507,800
Tao Xiaofang Domestic natural person 0.22% 1,228,000
Xue Hong Domestic natural person 0.22% 1,220,000
Vanguard
Investment Foreign legal person 0.21% 1,196,785
Australia
Ltd-Vanguard
2
Changchai Company, Limited Interim Report 2019 (Summary)
Emerging Market
Stock Index Fund
(Exchange)
Xie Deqing Domestic natural person 0.20% 1,140,100
Central Huijin
Asset Management State-owned legal person 0.20% 1,107,900
Co., Ltd.
It is unknown whether there is among the top 10 public
shareholders and the top 10 unrestricted public shareholders
Related or acting-in-concert parties among the
any related parties or acting-in-concert parties as defined in
shareholders above
the Administrative Measures for Information Regarding
Shareholding Alteration.
Shareholders involved in securities margin
N/A
trading (if any)
4. Change of the Controlling Shareholder or the Actual Controller in the Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding
before the date of this Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
The first half of 2019 saw a trough of the agricultural machinery market, which is expected to continue. During this
3
Changchai Company, Limited Interim Report 2019 (Summary)
period, the Company sold 361,100 units of diesel engines, gasoline engines and related generator sets, including
69,300 units of gasoline engines, generating total sales revenue of RMB1,115,829,845.59, a drop of 5.98%
year-on-year. In the Reporting Period, the Company strengthened product advantages, accelerated market
expansion, and pushed forward product planning step by step. Also, it attached importance to service management
to increase service efficiency, and enhanced internal management for better cost efficiency. Through these efforts,
it has achieved the following results:
Product R&D and innovation: The Company continued to drive the R&D and reserve of diesel engine for
non-road vehicles project under China’s Motor Vehicle Emission Standards IV and diesel engine for automotive
use project under China’s Motor Vehicle Emission Standards VI. The development and application of the remote
monitoring platform entered the stage of software deployment, and the platform provided favorable support to the
reduction in the Company’s service costs of “three guarantees”.
Quality management: In light of the adjustment to its organizational structure, the Company revised its system
documents, which passed the internal audit in April 2019. In June, the Company passed the external audit of its
ISO9001 and IATF16949 quality management systems by CASC and the spot check by China National
Accreditation Service for Conformity Assessment.
Marketing management: The Company solidified the existing advantages and enlarged the share of superior
products. It kept improving service capabilities by building good cooperative partnership with customers and
suppliers, adapting to market changes for opportunities to expand the market and promoting new areas of
supporting products. As a result, customer satisfaction kept rising.
Internal management: The Company further improved the Articles of Association, reinforced the construction of
internal control system and the supervision of key projects. By deepening the medium-term special audit, it
improved risk prevention and control ability and the quality of internal audit work. As timely measures are taken
to solve problems, operational efficiency of the Company is improved.
Market: In traditional agriculture sector, facing increasing market competition, the Company established a sales
policy of stabilizing the market shares of its two main engine factories while developing new markets and new
fields with targeted marketing in key regions, which led to some achievements. Although the total market of single
cylinder engine industry fell substantially, decline in the Company’s sales of single cylinder engines was lower
than the industrial average. Changchai maintained its industrial top position in terms of its market share of single
cylinder engines. In non-road sector, an increase was seen in the Company’s market share of multi-cylinder
engines in tractors, harvesters, corn harvesters, with advantaged fields being further strengthened. Furthermore, in
light of the continuous decline in agriculture sector, the Company continued to expand non-agriculture market by
striving to develop market shares in such supporting markets as coastal, project infrastructure and small project
machinery, in addition to stabilizing its market share of construction machinery and prospecting machinery.
Outbound investment: In February 2019, the Company founded Jiangsu Changchai Machinery Co., Ltd., a wholly
owned subsidiary of the Company, which engages in production projects of light engines and castings. As a result,
the number of the Company’s majority-owned subsidiaries has increased to six.
4
Changchai Company, Limited Interim Report 2019 (Summary)
2. Matters Related to Financial Reporting
(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the Last
Accounting Period
√ Applicable □ Not applicable
Changes to the accounting policies and why Approval process Remark
On 27 August 2019, the
The Notice on Revising and Issuing the Formats of 2019 Financial
Company held the 20th
Statements for General Enterprises issued by the Ministry of Finance
Meeting of the 8th
on 30 April 2019 requires the companies which have implemented
Board of Directors and Refer to (1)
the new standards governing financial instruments but not the new
the 16th Meeting of the of other
standards governing revenue and lease or companies which have
8th Supervisory notes for
implemented the new standards governing financial instruments and
Committee and details
revenue but not the new standards governing lease to adjust items of
approved the Proposal
financial statements in line with requirements in Appendix 1 and
on Changes of Some
Appendix 2 of this Notice.
Accounting Policies
The Company starts to implement the Accounting Standards for
Business Enterprises No.22-Recognition and Measurement of
On 9 April 2019, the
Financial Instruments, Accounting Standards for Business Enterprises
Company held the 17th
No.23-Transfer of Financial Assets, Accounting Standards for
Meeting of the 8th
Business Enterprises No.24-Hedge Accounting and Accounting
Board of Directors and Refer to (2)
Standards for Business Enterprises No.37-Presentation of Financial
13th Meeting of the 8th of other
Instruments, which revised and issued by the Ministry of Finance in
Supervisory Committee notes for
March 2017 and hereinafter collectively referred to as new standards
and approved the details
governing financial instruments since 1 January 2019 which stipulate
Proposal on Changes in
that the company shall classify and measure financial instruments in
Some Accounting
accordance with regulations on the execution date, when the data of
Policies
comparative financial statements of prior years do not comply with
the new standards, no adjustment is made by the Company.
(1) Influence of Changes in Formats of Financial statements
Affected items in the consolidated balance sheet and amount thereof:
31 December 2018 1 January 2019
Notes receivable and accounts Notes receivable 495,370,782.47
receivable 874,229,941.58
Accounts receivable 378,859,159.11
Notes payable and accounts Notes payable 438,375,400.00
payable 1,030,130,275.77
Accounts payable 591,754,875.77
Affected items in the balance sheet of the Company as the parent and amount thereof:
31 December 2018 1 January 2019
Notes receivable and accounts Notes receivable 490,519,795.91
receivable 790,877,079.72
Accounts receivable 300,357,283.81
Notes payable and accounts Notes payable 425,995,400.00
payable 987,550,797.44
Accounts payable 561,555,397.44
(2) Influence of Execution of New Standards Governing Financial Instruments
Affected items in the consolidated balance sheet and amount thereof:
Affected amount
Item 31 December Affected by Affected by 1 January 2019
2018 classification and impairment of
measurement financial assets
5
Changchai Company, Limited Interim Report 2019 (Summary)
Available-for-sale
498,851,369.49 -498,851,369.49
financial assets
Other investments in
498,851,369.49 498,851,369.49
equity instruments
Affected items in the balance sheet of the Company as the parent and amount thereof:
Affected amount
31 December Affected by Affected by
Item 1 January 2019
2018 classification and impairment of
measurement financial assets
Available-for-sale
470,940,000.00 -470,940,000.00
financial assets
Other investments in
470,940,000.00 470,940,000.00
equity instruments
(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the Reporting
Period
□ Applicable √ Not applicable
No such cases.
(3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period
□ Applicable √ Not applicable
No such changes for the Reporting Period.
6
