Changchai Company, Limited Annual Report 2023 (Summary)
Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2024-005
CHANGCHAI COMPANY, LIMITED
ANNUAL REPORT 2023 (SUMMARY)
Part I Important Notes
This Summary is based on the full Annual 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 position 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”).
All the directors of the Company attended in person the board meeting for the approval of this Report.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:
√ Applicable □ Not applicable
Bonus issue from capital reserves:
□ Yes √ No
The Board has approved a final dividend plan for ordinary shareholders as follows: based on the 705,692,507
shares, a cash dividend of RMB0.47 (tax inclusive) per 10 shares is to be distributed to the shareholders, with no
bonus issue from either profit or capital reserves.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
□ 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 Shenzhen Stock Exchange
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Changchai Company, Limited Annual Report 2023 (Summary)
listing
Contact information Board Secretary Securities Representative
Name He Jianjiang
123 Huaide Middle Road,
Address
Changzhou, Jiangsu, China
Fax （86）519-86630954
Tel. （86）519-68683155
Email address cchjj@changchai.com
2. Principal Activities or Products in the Reporting Period
1. Principal Operations of the Company
We mainly specialize in the R&D, manufacture and sales of diesel engines under the brand "Changchai" and
gasoline engines under the brand "Robin". Our products are mainly used in agricultural machinery, small
engineering machinery, generator sets and shipborne machinery and other fields closely related to people's
livelihood.
In the Reporting Period, there were no major changes in the Company's core business and main products.
2. Main Products of the Company
Our main products are divided into two categories: diesel engines and gasoline engines. The details are as follows:
Main
Product Application
produc Graphic display Product description
features fields
ts
Our diesel engine products include
single-cylinder diesel engines and High power, low Agricultural
multi-cylinder engines, covering oil consumption, machinery,
power range from 3kW to 129kW, low noise, construction
Diesel
and cylinder diameters from 65mm compact machinery,
engine
to 135mm. Besides sale in domestic structure, low generator sets,
market, our diesel engines are sold emission, good shipborne
to Southeast Asia, South America, reliability machinery
the Middle East and Africa.
Our gasoline engines are mainly
general-purpose small gasoline
engines, covering the power range Agricultural
Simple structure,
Gasolin from 1.5kW to 9.0kW. Besides sale machinery,
good reliability,
e in domestic market, our gasoline small
easy
engine engines are sold to Southeast Asia, construction
maintenance
the Middle East, Europe and machinery
America, Africa, Japan and other
countries and regions.
3. Industry Review
(1) Basic information on the industry
The internal combustion engine is an important support for China's manufacturing industry security, energy
security and national defense security, and an important basic industry of national economy and national defense
construction. The internal combustion engine is the most power-dense, thermally efficient and widely used heat
engine power unit.
In order to implement the national overall development strategy of energy conservation, emission reduction,
transformation, and upgrading, the internal combustion engine industry and agricultural machinery industry will
strengthen independent innovation and research and development, accelerate the construction of a common basic
technology platform, optimize the construction of the upstream and downstream industry chain, implement
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Changchai Company, Limited Annual Report 2023 (Summary)
intelligent manufacturing, and actively carry out international exchange and cooperation to accelerate the
realization of industrial technology upgrading.
(2) Development pattern and trend of the industry
In terms of policies, national regulations pertaining to internal combustion engine technology have considerably
tightened, with a notable emphasis on energy conservation, emissions reduction, and reliability, thereby making
them focal points of industrial development. The rigorous enforcement of national emission standards will
expedite the development and deployment of core technologies and crucial components within internal
combustion engines. The exploration and dissemination of efficient and clean internal combustion engine products
will drive the widespread adoption of independent-brand electronic fuel injection systems, high-efficiency
superchargers, and advanced after-treatment solutions.
In recent years, the issuance of the No. 1 Document by the central government has underscored its commitment to
elevating the importance of agriculture and bolstering agricultural development. In 2024, the No. 1 Document
outlined a "road map" to vigorously and effectively propel comprehensive rural revitalization. To stimulate
demand through industrial policies, it is imperative to enhance the research and application proficiency of
agricultural machinery and equipment, promote the innovation framework for cutting-edge agricultural machinery,
vigorously address the deficiencies in agricultural machinery and equipment, bolster the information-based
capabilities and service provision of agricultural machinery and equipment, advance the intelligence and
automation levels of agricultural machinery, reinforce the synergy between technology and reform, and intensify
efforts in core technology research and development, all of which will delineate the trajectory for agricultural
modernization.
As a result of the national policy of subsidies for the purchase of machinery, industrial development policies and
the impact of environmental regulations and requirements, overall market demand for single-cylinder diesel
engines for small agricultural machinery remained low, causing intense competition. Despite the gradual increase
in the use of single-cylinder engines in the non-agricultural sector, overall sales remained on a downward path.
The year 2023 is the first year of upgrading the National Emission Standard III to IV, and the agricultural
machinery industry has entered a drastic “reshuffle” period. From the point of view of the development of the
industry as a whole, the sales of low-quality products continued to weaken, and high-quality products continued to
take over more market share, which promoted the sustainable development of the industry as a whole. With the
full-scale implementation of National Emission Standard IV for Non-road Vehicles and the evolving market
dynamics, the pace of development for high-end agricultural machinery products in China has accelerated. High-
end and intelligent trends of agricultural machinery catalyzed a fresh wave of structural transformation within the
agricultural machinery industry. The sector has entered a phase of profound adjustments propelled by optimization
and upgrading, with agricultural machinery enterprises concurrently embarking on a trajectory of high-quality
development, hastening the integration and advancement of advanced technologies encompassing energy
conservation and emissions reduction, intelligent manufacturing, and the enhancement of product quality and
efficiency. As new opportunities for development arise in the national strategic deployment and the accelerated
transformation and upgrading process, the agricultural machinery market has a broad space for growth.
4. The Company's position in the market
We mainly specialize in the R&D, manufacture and sales of diesel engines under the brand "Changchai" and
gasoline engines under the brand "Robin". Up to now, we have successfully developed a number of advanced core
technologies with independent intellectual property rights. In terms of diesel engine, according to the statistics of
China Internal Combustion Engine Industry Association (CICEIA), as the largest small- and medium-sized single-
cylinder diesel engine manufacturer in the agricultural machinery industry of China, we have maintained a high
market share of single-cylinder engines, and our market share of single-cylinder diesel engines of some power
ranges has ranked first in China. For many years, in the process of achieving steady economic development of the
enterprise, we developed in a sound manner and cultivated the "Changchai" brand, a famous small diesel engine
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Changchai Company, Limited Annual Report 2023 (Summary)
brand of China with independent intellectual property rights.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
Change of
31
31 December December 31 December
31 December 2023
2022 2023 over 31 2021
December
2022 (%)
Total assets (RMB) 5,159,394,958.92 5,219,359,853.42 -1.15% 4,860,382,961.26
Equity attributable to the listed
3,398,946,911.23 3,284,710,665.90 3.48% 3,077,550,018.33
company’s shareholders (RMB)
2023-over-
2023 2022 2022 change 2021
(%)
Operating revenue (RMB) 2,155,698,787.49 2,182,043,095.61 -1.21% 2,452,430,515.60
Net profit attributable to the
listed company’s shareholders 108,495,607.05 76,684,796.91 41.48% 103,006,232.54
(RMB)
Net profit attributable to the
listed company’s shareholders
-47,466,184.54 -73,636,511.02 —— 5,329,092.87
before exceptional gains and
losses (RMB)
Net cash generated from/used in
137,189,827.35 364,930,277.84 -62.41% -266,323,779.30
operating activities (RMB)
Basic earnings per share
0.1537 0.1087 41.40% 0.1657
(RMB/share)
Diluted earnings per share
0.1537 0.1087 41.40% 0.1657
(RMB/share)
Weighted average return on
3.19% 2.51% 0.68% 3.86%
equity (%)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 703,102,297.70 647,415,342.15 458,557,165.00 346,623,982.64
Net profit attributable to the listed
23,934,592.54 108,002,732.12 24,931,699.23 -48,373,416.84
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 1,107,543.07 4,718,000.91 -16,029,859.81 -37,261,868.71
exceptional gains and losses
Net cash generated from/used in
-71,086,048.66 -33,710,768.09 -109,331,432.55 351,318,076.65
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs
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Changchai Company, Limited Annual Report 2023 (Summary)
materially from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well
as Holdings of Top 10 Shareholders
Unit: share
Number
of Number of
Number of
Number ordinary preferred
preferred
of sharehold shareholde
shareholders with
ordinary ers at the rs with
resumed voting
sharehold 58,653 month- 56,686 resumed 0 0
rights at the month-
ers at the end prior voting
end prior to the
period- to the rights at
disclosure of this
end disclosure the period-
Report
of this end
Report
Top 10 shareholders (exclusive of shares lent in refinancing)
Sharehold Shares in pledge,
Name of
Nature of ing Total shares held at Restricted marked or frozen
sharehold
shareholder percentag the period-end shares held
er Status Shares
e
Changzho
u
State-owned
Investme 32.26% 227,663,417 56,818,181 N/A 0
legal person
nt Group
Co., Ltd
Domestic
Chen Jian natural 0.49% 3,478,600 0 N/A 0
person
KGI
ASIA Foreign legal
0.44% 3,101,695 0 N/A 0
LIMITE person
D
Domestic
Wu
natural 0.35% 2,442,200 0 N/A 0
Chunhua
person
China
Internatio
nal
State-owned
Capital 0.27% 1,921,527 0 N/A 0
legal person
Corporati
on
Limited
Domestic
Lu Zhang natural 0.26% 1,836,643 0 N/A 0
person
Domestic
Li Suinan natural 0.23% 1,593,800 0 N/A 0
person
Zhang Domestic 0.22% 1,556,700 0 N/A 0
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Changchai Company, Limited Annual Report 2023 (Summary)
Wenbing natural
person
Domestic
Huang
natural 0.22% 1,528,891 0 N/A 0
Guoliang
person
Huatai
State-owned
Securities 0.21% 1,509,155 0 N/A 0
legal person
Co., Ltd.
It is unknown whether there is among the top 10 public shareholders and the top
Related or acting-in-
10 unrestricted public shareholders any related parties or acting-in-concert parties
concert parties among the
as defined in the Administrative Measures for Information Regarding
shareholders above
Shareholding Alteration.
Top 10 shareholders
Shareholders Chen Jian and Wu Chunhua held 2,952,800 and 2,442,200 shares
involved in securities
respectively in the Company through their margin accounts.
margin trading (if any)
Top 10 shareholders involved in refinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period
√ Applicable □ Not applicable
Unit: share
Changes in top 10 shareholders compared with the end of the prior period
Shares in the common
Shares lent in
Newly added account and credit account
refinancing and not yet
or existing plus shares lent in
returned at the period-
from top 10 refinancing and not yet
Full name of shareholder end
shareholders in returned at the period-end
the Reporting As % of As % of
Period Total
total share Total shares total share
shares
capital capital
Wu Chunhua Newly added 0 0.00% 2,442,200 0.35%
China International Capital
Newly added 0 0.00% 1,921,527 0.27%
Corporation Limited
Lu Zhang Newly added 0 0.00% 1,836,643 0.26%
Zhang Wenbing Newly added 0 0.00% 1,556,700 0.22%
Huatai Securities Co., Ltd. Newly added 0 0.00% 1,509,155 0.21%
MORGAN STANLEY & CO.
Exiting 0 0.00% 694,573 0.10%
INTERNATIONAL PLC.
Yang Xuee Exiting 0 0.00% 0 0.00%
China Minsheng Bank-Goldstate
Yuanqi Dynamic Asset Allocation
Exiting 0 0.00% 0 0.00%
Mixed Type Securities Investment
Fund
CLSA Asset Management Limited-
Exiting 0 0.00% 938,641 0.13%
Clients’ Capital
Dai Wenping Exiting 0 0.00% 0 0.00%
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Changchai Company, Limited Annual Report 2023 (Summary)
No preferred shareholders in the Reporting Period.
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Outstanding Bonds at the Date when this Report Was Authorized for Issue
□ Applicable √ Not applicable
Part III Significant Events
1. Expropriation of the Wuxing branch company’s properties on state-owned land and compensation
On 25 May 2023, the Proposal on the Intention to Sign the Agreement on the Expropriation of the Properties of
the Wuxing Branch Company on State-owned Land in Changzhou City and the Compensation was approved at
the 17th Meeting of the Ninth Board of Directors. Later, the said matter was approved at the First Extraordinary
General Meeting of Shareholders in 2023 dated 12 June 2023. As such, the Company was agreed to sign a
contract with Changzhou Zhonglou District Housing and Urban-Rural Development Bureau on the
expropriation of the Wuxing branch company’s properties on state-owned land and the compensation, with the
contractual total compensation amount being RMB117 million. On 14 June 2023, the Company signed the
Agreement on the Expropriation of the Properties of the Wuxing Branch Company on State-owned Land in
Changzhou City and the Compensation with Changzhou Zhonglou District Housing and Urban-Rural
Development Bureau, and received the first compensation payment of RMB70 million on 28 June 2023, and
received the residual compensation payment of RMB47 million on 9 January 2024.
2. Housing expropriation on state-owned land and compensation of Sanjing Branch
On 27 October 2023, the Company held the Third Meeting of the Tenth Board of Directors, deliberating on and
approving the Proposal on Signing the Sanjing Branch's Agreement on Non-residential Housing Expropriation
and Compensation in Xinbei District, Changzhou City. The matter was approved at the third extraordinary
general meeting on 14 November 2023, approving that the Company would sign agreement with the Housing
and Urban-Rural Development Bureau of Changzhou National High-tech Industrial Development Zone and the
Housing Expropriation and Compensation Service Centre of Sanjing Street, Xinbei District, Changzhou City,
regarding the housing expropriation on state-owned land and compensation of the Sanjing Branch. The total
compensation amount under the agreement was RMB99,929,900. On 29 November 2023, the Company signed
the Agreement on Non-residential Housing Expropriation and Compensation with the Housing and Urban-Rural
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Changchai Company, Limited Annual Report 2023 (Summary)
Development Bureau of Changzhou National High-tech Industrial Development Zone and the Housing
Expropriation and Compensation Service Centre of Sanjing Street, Xinbei District, Changzhou City. The
Company received the first compensation of RMB30 million until January 2024.
3. Acquisition of 7.5% equity held by natural person shareholders of Zhenjiang Siyang
In December 2023, the Company acquired 7.5% equity held by three natural person shareholders of its partially-
owned subsidiaries Zhenjiang Siyang with RMB7.17 million. As at 31 December 2023, the Company had held
a total of 49% equity in Zhenjiang Siyang and remained its largest shareholder.
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