Changchai Company, Limited Interim Report 2020 (Summary)
Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2020-042
CHANGCHAI COMPANY, LIMITED
INTERIM REPORT 2020 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 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 preference 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 Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name He Jianjiang
123 Huaide Middle Road,
Office address
Changzhou, Jiangsu, China
Tel. （86）519-68683155
E-mail address cchjj@changchai.com
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Changchai Company, Limited Interim Report 2020 (Summary)
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Correction of accounting error
H1 2019 Change (%)
H1 2020
Before Restated Restated
Operating revenue (RMB) 1,167,455,782.30 1,115,829,845.59 1,118,871,125.00 4.34%
Net profit attributable to the
listed company’s shareholders 27,690,311.06 19,058,025.07 19,117,635.69 44.84%
(RMB)
Net profit attributable to the
listed company’s shareholders
20,672,139.96 14,227,155.59 14,260,746.62 44.96%
before exceptional gains and
losses (RMB)
Net cash generated from/used in
-20,354,729.25 -154,227,704.77 -153,321,492.87 ---
operating activities (RMB)
Basic earnings per share
0.0493 0.0339 0.0341 44.57%
(RMB/share)
Diluted earnings per share
0.0493 0.0339 0.0341 44.57%
(RMB/share)
Weighted average return on
1.32% 0.97% 0.91% 0.41%
equity (%)
31 December 2019 Change (%)
30 June 2020
Before Restated Restated
Total assets (RMB) 3,538,385,637.01 3,484,975,990.48 3,488,820,324.60 1.42%
Equity attributable to the listed
2,079,769,720.75 2,109,239,597.94 2,110,892,767.58 -1.47%
company’s shareholders (RMB)
Reason for change in accounting policy and particulars about correction of accounting error:
For details, please refer to “1. Correction of Previous Accounting Error” under “XV Other Significant Events” of
“Part XI Financial Statements” in the full text of the Interim Report.
3. Shareholders and Their Holdings as at the end of the Reporting Period
Unit: share
Number of preference
Number of ordinary shareholders with
46,936 0
shareholders resumed voting rights (if
any)
Top 10 shareholders
Sharehold Shares in pledge or
Name of Nature of Number of Restricted frozen
shareholder shareholder ing shares shares
percentag Status Shares
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Changchai Company, Limited Interim Report 2020 (Summary)
e
Changzhou State-owne
Investment Group d legal 30.43% 170,845,236
Co., Ltd person
China Construction
Bank
Corporation-First
State Cinda New
Other 1.70% 9,554,765
Energy Industry
Stock Type
Securities
Investment Fund
Foreign
KGI Asia Limited 0.57% 3,189,845
legal person
China Construction
Bank
Corporation-First
State Cinda
Advanced
Other 0.44% 2,488,474
Intelligent
Manufacturing
Stock Type
Securities
Investment Fund
Bank of
Communications
Co., Ltd.-First
State Cinda Core
Other 0.30% 1,676,500
Technologies
Mixed Type
Securities
Investment Fund
Domestic
Hu Wenyong natural 0.28% 1,561,866
person
Domestic
Li Suinan natural 0.27% 1,540,400
person
Domestic
Huang Guoliang natural 0.27% 1,528,891
person
Domestic
Xue Hong natural 0.24% 1,332,700
person
Domestic
Chen Hengjun natural 0.23% 1,276,500
person
It is unknown whether there is among the top 10 public shareholders and
Related or acting-in-concert
the top 10 unrestricted public shareholders any related parties or
parties among the shareholders
acting-in-concert parties as defined in the Administrative Measures for
above
Information Regarding Shareholding Alteration.
Shareholders involved in
None
securities margin trading (if any)
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Changchai Company, Limited Interim Report 2020 (Summary)
4. Change of the Controlling Shareholder and the De Facto 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 de facto controller in the Reporting Period:
□ Applicable √ Not applicable
The de facto controller remained the same in the Reporting Period.
5. Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preference 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 for the Reporting Period
Agricultural equipment manufacturers suffered hardship in various degrees in the first half of 2020 due to the
COVID-19 pandemic. Under a severe market condition of complexity and volatility at home and abroad during
the Reporting Period, the Company sold 376,800 units of diesel engines, gasoline engines and related generator
sets, including 61,200 units of gasoline engines, generating total sales revenue of RMB1.167 billion, an increase
of 4.34% 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:
In terms of anti-pandemic efforts, the Company has set up a dedicated task force, which is responsible for the
implementation of anti-pandemic measures and the related daily work. The focus is on preparation and application
for resumption of work/production, as well as ensuring smooth logistics, component procurement and marketing
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Changchai Company, Limited Interim Report 2020 (Summary)
planning upon the resumption of work/production. Therefore, the pandemic did not have a significant impact on
the production and operation of the Company during the Reporting Period.
Concerning product development and innovation, the development of diesel engine under the National Emission
Standard IV for Non-Road Vehicles has been pushed forward. Meanwhile, the ongoing diesel outboard engine
program aims to develop lightweight, high-speed and low-emission diesel engine and steering gear for outboard
engines and fill the gap in respect of domestic diesel outboard engines.
With regard to quality management, the Company was ISO9001 and IATF16949 certified by China Jiuding
Automotive Supplier Certification Co., Ltd. in the first half of 2020.
In terms of marketing, the Company managed to make progress in respect of the domestic and overseas markets in
face of the significant challenges of the anti-pandemic work and seizing opportunities during the peak season for
sales. On the domestic market, the Company solidified its existing markets, worked harder on weaker markets,
and launched new products and explored new markets in different areas. As a result, the Company has maintained
its leading position industry-wide with a steadily enlarging market share. In addition, breakthrough was made in
respect of sales of key products in key markets. As for the overseas market, exports of diesel engines and the
related generator sets saw a year-on-year increase. Meanwhile, the Company continued to expand the market
share of its strong products in major markets, as well as build trusted and harmonious partnerships with customers
and suppliers. Also, it actively dealt with market changes, grabbed market expansion opportunities, explored new
markets, and kept perfecting services. As a result, customer satisfaction is on the rise.
In terms of internal management, the Company 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.
During the Reporting Period, construction of Changchai Machinery was in full swing and proceeded smoothly. In
mid April, the Company launched a private placement project of 2020, and the plan was approved at a general
meeting on 8 May 2020.
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
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Changchai Company, Limited Interim Report 2020 (Summary)
Change of Accounting Policies
Changes to the accounting policies and why Approval process Remark
On 28 April 2020, the
The Ministry of Finance issued the Notice on
Company held the 2nd Meeting
Revising and Printing the Accounting Standards for
of the 9th Board of Directors
Business Enterprises No.14-Revenue
and the 2nd Meeting of the 9th
(CK[2017]No.22) (hereinafter referred to as the
Supervisory Committee and
“New Standards governing Revenue”) in July 2017
approved the Proposal on
and required all domestically listed companies to
Changes of Some Accounting
implement it since 1 January 2020.
Policies
Influence of Implementing the New Standards Governing Revenue
Affected items in the consolidated balance sheet and amount thereof:
Item 31 December 2019 Affected by classification and 1 January 2020
measurement
Advances from
31,789,001.78 -31,789,001.78
customers
Contract liabilities 31,789,001.78
Affected items in the balance sheet of the Company as the parent and amount thereof:
Item 31 December 2019 Affected by classification and 1 January 2020
measurement
Advances from
28,673,664.87 -28,673,664.87
customers
Contract liabilities 28,673,664.87
(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the Reporting
Period
√ Applicable □ Not applicable
Correction of Previous Accounting Error
Retrospective Restatement
Unit: RMB
Processing Affected financial statement line items of the Cumulative
Content
procedure comparative periods effects
Changzhou Consolidated Balance Sheet in 2019-Mnetary assets 1,375,254.03
Xingsheng The 4th Meeting Consolidated Balance Sheet in 2019-Trading
3,050,000.00
Property of the 9th Board financial assets
Management of Directors held Consolidated Balance Sheet in 2019-Accounts
Co., Ltd. that 6,391.36
on 29 July 2020 receivable
was not reviewed and
included in Consolidated Balance Sheet in 2019-Prepayment 38,200.00
approved the
the scope of Proposal on Consolidated Balance Sheet in 2019-Other
consolidated -893,682.24
Accounting receivables
statements
Errors Correction Consolidated Balance Sheet in 2019-Inventories 7,158.32
before has in Previous
been Consolidated Balance Sheet in 2019-Other current
Period. 67,355.14
conducted assets
accounting Consolidated Balance Sheet in 2019-Total of current 4,632,342.79
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Changchai Company, Limited Interim Report 2020 (Summary)
treatment assets
according to Consolidated Balance Sheet in 2019-Fixed assets 140,153.19
the
provisions of Consolidated Balance Sheet in 2019-Long-term
53,497.80
the prepaid expenses
accounting Consolidated Balance Sheet in 2019-Deferred
standards 6.52
income tax assets
during the
Consolidated Balance Sheet in 2019-Total of
Reporting 193,657.51
non-current assets
Period.
Consolidated Balance Sheet in 2019- Total assets 4,826,000.30
Consolidated Balance Sheet in 2019-Accounts
14,760.00
payable
Consolidated Balance Sheet in 2019-Advances from
952,386.57
customers
Consolidated Balance Sheet in 2019-Other payables 1,224,017.91
Consolidated Balance Sheet in 2019-Total of current
2,191,164.48
liabilities
Consolidated Balance Sheet in 2019-Total liabilities 2,191,164.48
Consolidated Balance Sheet in 2019-Surplus
163,483.58
reserves
Consolidated Balance Sheet in 2019- Retained
1,471,352.24
earnings
Consolidated Balance Sheet in 2019- Total equity
2,634,835.82
attributable to owners of the Company as the parent
Consolidated Balance Sheet in 2019- Total owners’
2,634,835.82
equity
Consolidated Balance Sheet in 2019- Total liabilities
4,826,000.30
and owners’ equity
Consolidated Income Statement in 2019- Revenue 5,687,083.80
Consolidated Income Statement in 2019- Operating
5,687,083.80
revenue
Consolidated Income Statement in 2019-Operating
5,726,254.73
costs
Consolidated Income Statement in 2019- Cost of
4,884,089.75
sales
Consolidated Income Statement in 2019- Taxes and
21,043.17
surtaxes
Consolidated Income Statement in 2019-
832,824.01
Administrative expense
Consolidated Income Statement in 2019- Finance
-11,702.20
costs
Consolidated Income Statement in 2019-Interest
13,193.10
income
Consolidated Income Statement in 2019- Other
12,063.29
income
Consolidated Income Statement in 2019- Investment
58,549.24
income
Consolidated Income Statement in 2019-Credit 7,317.61
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Changchai Company, Limited Interim Report 2020 (Summary)
impairment loss
Consolidated Income Statement in 2019-Operating
38,759.21
profit
Consolidated Income Statement in 2019-
16,006.10
Non-operating income
Consolidated Income Statement in 2019-
12,597.35
Non-operating expense
Consolidated Income Statement in 2019- Profit
42,167.96
before taxation
Consolidated Income Statement in 2019- Income tax 10,227.22
Consolidated Income Statement in 2019-Net profit 31,940.74
Consolidated Income Statement in 2019- Net profit
31,940.74
from continuing operations
Consolidated Income Statement in 2019- Net profit
31,940.74
attributable to owners of the Company as the parent
Consolidated Income Statement in 2019-Total
31,940.74
comprehensive income
Consolidated Income Statement in 2019-
31,940.74
Attributable to owners of the Company as the parent
Consolidated Income Statement in 2019-Earnings
0.00005
per share
Consolidated Income Statement in 2019- Diluted
0.00005
earnings per share
Consolidated Cash Flow Statement in
2019-Proceeds from sale of commodities and 6,150,306.39
rendering of services
Consolidated Cash Flow Statement in 2019- Cash
110,627.50
generated from other operating activities
Consolidated Cash Flow Statement in 2019-Subtotal
6,260,933.89
of cash used in operating activities
Consolidated Cash Flow Statement in 2019-
4,051,587.11
Payments for commodities and services
Consolidated Cash Flow Statement in 2019- Cash
1,415,158.29
paid to and for employees
Consolidated Cash Flow Statement in 2019- Taxes
223,381.96
paid
Consolidated Cash Flow Statement in 2019- Cash
353,138.57
used in other operating activities
Consolidated Cash Flow Statement in 2019- Subtotal
6,043,265.93
of cash used in operating activities
Consolidated Cash Flow Statement in 2019- Net
217,667.96
cash generated from/used in operating activities
Consolidated Cash Flow Statement in
3,900,000.00
2019-Proceeds from disinvestments
Consolidated Cash Flow Statement in 2019-
58,549.24
Investment income
Consolidated Cash Flow Statement in 2019- Subtotal
3,958,549.24
of cash generated from investing activities
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Changchai Company, Limited Interim Report 2020 (Summary)
Consolidated Cash Flow Statement in
2019-Payments for acquisition of fixed assets, 37,696.92
intangible assets and other long-lived assets
Consolidated Cash Flow Statement in 2019-
6,950,000.00
Payments for investments
Consolidated Cash Flow Statement in 2019- Subtotal
6,987,696.92
of cash used in investing activities
Consolidated Cash Flow Statement in 2019- Net
-3,029,147.68
cash generated from/used in investing activities
Consolidated Cash Flow Statement in 2019- Cash
-2,811,479.72
and cash equivalents, end of the period
(3) Changes to the Scope of the Consolidated Financial Statements Compared to the Last Accounting
Period
□ Applicable √ Not applicable
No such changes for the Reporting Period.
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