Changchai Company, Limited Third Quarter Report 2019
Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2019-031
CHANGCHAI COMPANY, LIMITED
THIRD QUARTER REPORT 2019 (SUMMARY)
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 (together with its
consolidated s ubsidiaries, the “Company”, except where the context otherwise requires)
hereby guarantee the factuality, accuracy and completeness of the conte nts of this Report and
its summary, and shall be jointly and severally liable for any misrepresentations , misleading
statements or mate rial 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 departme nt (equivalent to financial manage r)
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 Third Quarter Report 2019
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2019 31 December 2018 Change (%)
Total assets (RMB) 3,498,167,449.23 3,542,019,195.75 -1.24%
Equity attributable to the listed company’s
2,080,307,118.49 2,043,308,026.74 1.81%
shareholders (RMB)
YoY change YoY change
Q3 2019 Q1-Q3 2019
(%) (%)
Operating revenue (RMB) 460,579,449.28 6.47% 1,576,409,294.87 -2.65%
Net profit attributable to the listed
950,668.62 -79.65% 20,008,693.69 -14.16%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 197,704.53 -- 14,424,860.12 27.87%
exceptional items (RMB)
Net cash generated from/used in
-- -- -177,873,130.52 --
operating activities (RMB)
Basic earnings per share (RMB/share) 0.01 0.00% 0.04 0.00%
Diluted earnings per share
0.01 0.00% 0.04 0.00%
(RMB/share)
Weighted average return on equity (%) 0.05% -0.17% 1.02% -0.03%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RM B
Item Q1-Q3 2019 Note
Gain/Loss arising from disposal of non-current assets (inclusive of impairment
1,024,006.08
allowance write-offs)
Government subsidies recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to 326,259.20
the government’s unified standards
Gain/Loss on changes in fair value arising from holding of trading financial assets
and liabilities, derivative financial assets and liabilities and investment income from
337,630.60
disposal of trading financial assets and liabilities, derivative financial assets and
liabilities and other investments in debt obligation other than effective hedge
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Changchai Company, Limited Third Quarter Report 2019
business related to the Company’s normal operating businesses
Reversed portions of impairment allowances for loan by mandate which are tested
4,000,000.00
individually for impairment
Other non-operating income and expense other than the above 732,475.63
Less: Income tax effects 843,914.88
Non-controlling interests effects (after tax) -7,376.94
Total 5,583,833.57 --
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
II Total Numbe r of Shareholde rs and Holdings of Top 10 Shareholde rs at 30 September 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 preferred shareholders with
Number of ordinary shareholders 51,028 0
resumed voting rights (if any)
Top 10 shareholders
Shares in
Sharehol pledge or
Restri
Nature of ding Number of frozen
Name of shareholder cted
shareholder percenta shares Sh
shares Sta
ge are
tus
s
CHANGZHOU INVESTMENT GROUP State-owned
30.43% 170,845,236
CO., LTD legal person
CHINA CITIC BANK CORPORATION
LIMITED-CCB CHINA SECURITIES 500
Other 0.76% 4,254,122
INDEX ENHANCED SECURITIES
INVESTMENT FUND
Foreign legal
KGI ASIA LIMITED 0.57% 3,189,845
person
Domestic
LEI YANQIN 0.36% 2,019,946
natural person
Domestic
GAO FENHUAI 0.33% 1,873,800
natural person
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Changchai Company, Limited Third Quarter Report 2019
Domestic
HU WENYONG 0.28% 1,545,266
natural person
Domestic
HUANG GUOLIANG 0.27% 1,528,891
natural person
Domestic
LI SUINAN 0.27% 1,507,800
natural person
Domestic
XUE HONG 0.23% 1,290,900
natural person
Domestic
ZHOU YONG 0.22% 1,250,000
natural person
Top 10 unrestricted shareholders
Unrestricted Shares by type
Name of shareholder
shares Type Shares
RMB-denominated
CHANGZHOU INVESTMENT GROUP CO., LTD 170,845,236 170,845,236
ordinary stock
CHINA CITIC BANK CORPORATION
RMB-denominated
LIMITED-CCB CHINA SECURITIES 500 INDEX 4,254,122 4,254,122
ordinary stock
ENHANCED SECURITIES INVESTMENT FUND
Domestically listed
KGI ASIA LIMITED 3,189,845 3,189,845
foreign stock
RMB-denominated
LEI YANQIN 2,019,946 2,019,946
ordinary stock
RMB-denominated
GAO FENHUAI 1,873,800 1,873,800
ordinary stock
Domestically listed
HU WENYONG 1,545,266 1,545,266
foreign stock
Domestically listed
HUANG GUOLIANG 1,528,891 1,528,891
foreign stock
Domestically listed
LI SUINAN 1,507,800 1,507,800
foreign stock
Domestically listed
XUE HONG 1,290,900 1,290,900
foreign stock
RMB-denominated
ZHOU YONG 1,250,000 1,250,000
ordinary stock
It is unknown whether there is among the top 10 public shareholders
Related or acting-in-concert parties and the top 10 unrestricted public shareholders any related parties or
among the shareholders above acting-in-concert parties as defined in the Administrative Measures for
Information Regarding Shareholding Alteration.
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Changchai Company, Limited Third Quarter Report 2019
Top 10 ordinary shareholders
involved in securities margin trading N/A
(if any)
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.
□ Yes √ 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 Third Quarter Report 2019
Part III Significant Events
I Changes in Key Consolidated Financial State ment Line Items and Explanation of why
√ Applicable □ Not applicable
1. Consolidated Balance Sheet Items as at 30 September 2019
Item 30 September 31 December 2018
Change (%) Explanation of why
2019 (RMB) (RMB)
Accounts receivable 813,510,517.41 378,859,159.11 114.73% Accounts receivable as at 30
September 2019 rose 114.73% from
the amount as at 31 December 2018,
because during Q1~Q3 2019, credit
sale was properly carried out to
extend market space, and most
multi-cylinder engine customers
were supporting manufacturers for
bigger enterprises, which means
relatively long account ages for the
Company.
Other current assets 15,813,912.76 34,357,608.97 -53.97%Decrease in overpaid VAT
Advance payment 64,895,163.52 34,500,232.97 88.10%The increase of the company's
advance payment.
Payroll payable 12,826,072.56 50,500,592.99 Salaries and bonuses accrued in the
nine months ended 30 September
-74.60%
2018 were paid in the corresponding
period of the current year.
Tax payable 3,867,390.55 7,066,085.89 -45.27%Mainly for the changes of sales and
profit, as well as the impact of the
national tax reduction policy.
The non-current 0.00 18,500,000.00 -100.00% The company repaid the due
liabilities due within non-current liabilities of RMB
one year 18,500,000.00 during the reporting
period..
Long-term loan 0.00 2,000,000.00 -100.00% The company repaid the long-term
loan of RMB 2,000,000.00 during
the reporting period in advance.
2. Consolidated Income Statement Items for Q1~Q3 2019
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Changchai Company, Limited Third Quarter Report 2019
Q1~Q3 2018
Item Q1~Q3 2019 (RMB) Change (%) Explanation of why
(RMB)
Research and 49,515,164.09 36,524,504.36 35.57% some r&d projects used more r&d
development costs funds.
Asset impairment 26,096.43 -2,531,847.48 -- Allowances for doubtful accounts
loss receivable recorded based on aging
led to an increase in asset
impairment loss, while the
collection of entrusted loans with
full-amount impairment allowances
resulted in writedowns in this item.
Non-operating 961,235.14 2,830,716.11 -66.04% More government subsidies.
income
Non-operating expenses 233,654.06 1,698,515.85 -86.24% The large loss of dull materials
disposed in the previous period.
The income tax -2,232,431.33 5,079,513.44 -- The company received a total of
expense 6,700,210.88 yuan of corporate
income tax refund in the final
settlement of 2018 in June 2019.
Other 30,999,075.00 -144,235,225.00 -- Significant increase in gains on fair
comprehensive value changes of investments in
income, net of tax other equity instruments.
3. Consolidated Cash Flow Statement Items for Q1~Q3 2019
Q1~Q3 2019 Q1~Q3 2018
Item Change (%) Explanation of why
(RMB) (RMB)
Net cash generated -177,873,130.52 -54,251,797.59 -- Increase in accounts receivable.
from/used in
operating activities
Net cash generated -64,901,304.94 -23,421,616.03 -- The investment of 50 million yuan
from/used in to Jiangsu Housheng New Energy
investing activities Technology co., LTD.
Net cash generated -44,353,925.59 -16,892,465.30 -- Mainly for the company repaid part
from/used in of the bank debt.
financing activities
II Progress, Influence and Solutions with regard to Significant Events
□ Applicable √ Not applicable
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Changchai Company, Limited Third 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 Pa rties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
√ Applicable □ Not applicable
Perio
Type Date of
d of
Commitm of commit Fulfill
Commitment Contents com
ent maker commi ment ment
mitm
tment making
ent
Rewards Plan for Shareholders in Next
Three Years(2017-2019)
Under the premise of positive distributive
profit (remaining after-tax profits after
making up for the loss and extracting for
the common reserves) in this year or half
Other year and abundant money flow and no Imple
Changcha
commitments influence on the following-up going Year ment
i 11 May
made to Bonus concern after cash bonus, the profits 2017- in a
Company, 2017
minority allocated by cash every year shouldn’t be 2019 norma
Limited
shareholders lower than 10% of the allocable profits l way
from parent company. Meanwhile, the
accumulated allocable profits by cash in
the arbitrary continuous three accounting
years should not be lower than 30% of the
annual average allocable profits in those
three years.
Fulfilled on time Yes
When the commitment was not
completely fulfilled at maturity, the
N/A
specific reasons and following work
plan shall be given
IV Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Changchai Company, Limited Third Quarter Report 2019
V Wealth Manage ment Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
Outstanding
Type of wealth
Funding source Principal amount before Overdue amount
management
maturity
Wealth
management
product purchased Self-funded 1000 1000 0
from securities
company
Total 1000 1000 0
High-risk wealth management entrustments with amounts that are individually s ignificant, or with low security,
low liquidity, or no protection of the principal:
□ Applicable √ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Intervie w, etc.
during Reporting Pe riod
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
17 September 2019 Other Individual Tax rebate of the corporate income tax
Number of shareholders of the
11 September 2019 Other Individual
Company
5 September 2019 Other Individual Agricultural machinery industry policy
Development state of the agricultural
5 September 2019 Other Individual
machinery industry
Transformation and upgrading of the
5 September 2019 Other Individual
Company
Development program of the
5 September 2019 Other Individual
Company
30 August 2019 Other Individual The Company’ investment in the
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Changchai Company, Limited Third Quarter Report 2019
project of Housheng lithium battery
The Company’ investment in the
6 August 2019 Other Individual
project of Housheng lithium battery
The purchase for relocation of the
29 July 2019 Other Individual
Company
The relocation schedule of the
28 July 2019 Other Individual
Company
The relocation schedule of the
28 July 2019 Other Individual
Company
Transformation and upgrading of the
10 July 2019 Other Individual
Company
The Company’ investment in the
4 July 2019 Other Individual
project of Housheng lithium battery
1 July 2019 Other Individual Product rage of the Company
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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