Short form of the Stock: Suchangchai A, Suchangchai B Stock Code: 000570, 200570 Notice Number: 2010-021
CHANGCHAI COMPANY, LIMITED
THE THIRD QUARTERLY REPORT 2010
§ 1 Important Notes
1.1 The Board of Directors, the Supervisory Board, directors, supervisors and senior
management staff of Changchai Company, Limited (hereinafter referred to as “the Company”)
hereby confirm that this report contains no false information, misleading statements or material
omission, and accept, individually and collectively, the responsibilities for the factuality,
accuracy and completeness of the contents of this report.
1.2 None of the directors, supervisors, or senior management demonstrated uncertainty or
disagreement about the factuality, accuracy, and completeness of this quarterly report.
1.3 All directors attended the board meeting in person except the following director.
Name Title Reason Name of consigner
Lu Jiaxiang Director On business trip Shi jianchun
Zhu jianming Independent
Director On business trip Xue guojun
1.4 The Financial Report of this quarterly report has not been audited by a CPA firm.
1.5 Mr. Xue Guojun, Person-in-charge of the Company, Mr. He Jianguang, Person-in-charge of
the accounting work and Mr. Jiang He, Person-in-charge of the accounting department hereby
confirm that the Financial Report enclosed in the Quarterly Report is factual and complete.
§2 Company Profile
2.1 Major accounting data and financial indexes
Unit: (RMB) Yuan
30 Sep. 2010 31 Dec. 2009 Increase/decrease (%)
Total assets (Yuan) 3,174,516,942.30 2,940,087,431.89 7.97%
Owners’ equity attributable to shareholders of listed
company (Yuan)
1,927,086,213.10 1,797,529,734.74 7.21%
Share capital (share) 561,374,326.00 561,374,326.00 0.00%
Net assets per share attributable to shareholders of listed
company (Yuan/share)
3.43 3.20 7.19%Jul.-Sep. 2010
Increase/decrease
year-on-year (%)
Jan.-Sep. 2010
Increase/decrease
year-on-year (%)
Total operating income (Yuan) 651,371,008.34 1.75 2,138,046,463.99 13.26
Net profit attributable to shareholders of listed company
(Yuan)
26,161,938.98 53.47 88,722,265.86 -56.88
Net cash flows generated from operating activities (Yuan) - - 78,466,424.14 -78.29
Net cash flows per share generated from operating activities
(Yuan/share)
- - 0.14 -78.13
Basic earnings per share (Yuan/share) 0.05 66.67 0.16 -56.40
Diluted return on net assets (Yuan/share) 0.05 66.67 0.16 -56.40
Return on equity (%) 1.36% 0.29 4.60% -8.30
Return on equity after deducting non-recurring gains and
losses (%)
1.23% 0.19 4.39% -0.73
Items of non-recurring gains and losses
From year-begin to the end
of report period
Note
Gains and losses from disposal of non-current assets 6,050,730.16
Including: a net income of RMB
6,050,730.16 from fixed asset
disposal
Government subsidies recorded into current gains and losses,
excluding government subsidies with close relationship with the
Company’s business and rationed government grants in line with the
united standard and the state policy
830,030.84
Gains and losses from changes in fair value due to transaction
financial assets and liabilities, and investment income from disposal
of transaction financial assets, transaction financial liabilities and
financial assets available for sale, excluding valid hedging related to
routine operation of the Company
391,272.39
Other non-operating income and expense except the aforesaid items -2,255,070.11
Impact on income tax -813,330.34
Effect on minority interests (after tax) -113,973.46
Total 4,089,659.48 -
2. Total number of shareholders at period-end and shareholding of top ten shareholders holding
tradable shares
Unit:
share
Total number of shareholders at period-end 108538
The top ten shareholders holding shares not subject to trading moratorium
Full name of shareholders
Number of shares not subject
to trading moratorium held at
Type of sharethe period-end
State-owned Assets Supervision and Administration Commission of
Changzhou Municipal Government
168,497,736 RMB ordinary shares
China Construction Bank-ICBC Credit Suisse Selected Balanced
Mixed Fund
3,999,911 RMB ordinary shares
UBS CUSTODY SERVICES SINGAPORE PTE. LTD. 999,908 Domestically listed foreign share
Sinoauto Company, Ltd. 908,510 Domestically listed foreign share
NORGES BANK 898,350 Domestically listed foreign share
Li Tao 838,391 Domestically listed foreign share
Yu Xiaoping 790,000 Domestically listed foreign share
Shenzhen Huarong Century Investment Co., Ltd. 740,250 RMB ordinary shares
Ma Zeqi 712,500 Domestically listed foreign share
Ningxia Computer Software and Technical Service Co., Ltd 672,675 RMB ordinary shares
§ 3 Significant Events
3.1 Particulars about major changes of main accounting statement items and financial indicators,
as well as reasons for the changes
√Applicable □Inapplicable
1. Accounts receivable increased over that at the year-begin mainly because in the report period,
the Company moderately allowed postponed payments in sales according to relevant agreements
and plans so as to expand market space.
2. Inventories decreased over that at the year-begin mainly because some of the inventories that
the Company prepared at the year-begin were sold in the report period.
3. Payroll payable decreased considerably over that at the year-begin mainly because some salary
reserves were withdrawn at the period-begin and spent in the current period.
4. Other accounts payable increased greatly over that at the year-begin mainly because the
Company raised the anticipated expenses on selling concession and repair services so as to
expand the market and strengthen the after-sales service.
5. Investment income decreased significantly over last year mainly because in the same period of
last year, the Company sold the 4.5 million shares of “Foton Motor” (recognized as transactional
financial assets) and transferred the 35,117,105 shares of “Kama B”, at the price of RMB 5.33
per share, to China Hi-tech Group Corporation, which generated a non-recurring income, while
there was no such an income in the current year.
6. Net profit showed a considerable fall as compared with last year mainly because: (1) In the
first half of 2009, the Company sold the 4.5 million shares of “Foton Motor” (recognized as
transactional financial assets), which accumulatively generated a pre-tax income of RMB
14,805,000 for the first three quarters of the year; and (2) In the first half of 2009, the Company
transferred the 35,117,105 shares of “Kama B”, at the price of RMB 5.33 per share, to China
Hi-tech Group Corporation, generating a non-recurring pre-tax income of RMB 155,467,758.02.But there has not been any non-recurring income in 2010.
3.2 Progress and influence of significant events, as well as the analysis on solutions
3.2.1 None-standard opinions
□Applicable √Inapplicable
3.2.2 The Company provided funds to its controlling shareholder or related parties and provided
guarantees in violation of established procedures.
□Applicable √Inapplicable
3.2.3 Signing and performance of significant contracts for daily operation
□Applicable √Inapplicable
3.2.4 Other
□Applicable √Inapplicable
3.3 Fulfillment of commitments made by the Company, shareholders and the actual controller
√Applicable □Inapplicable
Commitment Commitment maker Specific contents of the commitment Execution
Commitment concerning
share reform
State-owned Assets
Supervision and
Administration
Commission of
Changzhou Municipal
Government
1. The non-tradable shares held by the
Commission shall not be listed for trading or
transferred within 12 months since the execution
date of the reform plan; and
2. Upon expiration of the said commitment
period, the originally non-tradable shares sold via
listing and trading in Shenzhen Stock Exchange
shall not exceed 5% of the Company’s total
shares within 12 months or 10% within 24
months.
Accomplished
Commitment concerning
share trading moratorium
Inapplicable
Commitment as stated in the
acquisition report or the
report on owners’ equity
change
Inapplicable
Commitments concerning
significant asset
reorganization
Inapplicable
Commitment concerning
issuance
Inapplicable
Other commitments Inapplicable(including supplementary
ones)
3.4 Warnings of possible losses or major changes of the accumulative net profit achieved during
the period from year-begin to the end of the next report period compared with the same period of
last year, as well as explanation on reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Securities investment
√Applicable □Inapplicable
Seque
nce
No.
Securities
variety
Stock code
Short form of
stock
Initial investment
amount (RMB)
Number of
shares held
(share)
Book value at
period-end
Proportion in
total
securities
investment at
period-end
(%)
Profits or losses in
report period
1 Stock 002485 Sinoer 39,900.00 1,500 39,900.00 14.18% 0.00
2 Stock 002487 DHI Corp 19,300.00 500 19,300.00 6.86% 0.00
3 Stock 300126
Shanghai Ken
Tools
17,000.00 500 17,000.00 6.04% 0.00
4 Stock 300127
Chengdu
Galaxy
Magnets
9,000.00 500 9,000.00 3.20% 0.00
5 Fund
Dongfeng
No.6
200,000.00 200,000.00 196,186.31 69.72% -3,813.69
Other securities investment held at period-end 0.00 - 0.00 0.00% 0.00
Profits or losses from securities investment sold
in report period
- - - - 395,086.08
Total 285,200.00 281,386.31 391,272.39
3.5.2 Equity of other listed companies held by the Company
√Applicable □Inapplicable
Stock code
Short form of
stock
Initial
investment
amount
Proportion in
equity of this
company
Book value at
the period-end
Profits or
losses for
the report
period
Changes in
owners’ equity
in the report
period
Accounting item
Equity
source
600166 Foton Motor 41,784,000.00 3.94% 736,227,500.00 0 48,046,250.00
Available-for-sale
financial assets
Via an asset
exchangewith the
Changchai
Group in
1999
600377
Ninghu
Expressway
90,500.00 351,000.00 0 -6,000.00 Available-for-sale
financial assets
Via an
transfer
upon
agreement
Total 41,874,500.00 736,578,500.00 0 48,040,250.00
3.5.3 Equities of non-listed financial enterprises and to-be-listed enterprises held by the
Company
√Applicable □Inapplicable
Name of the
entity
Initial
investment
amount
Number of
equities
held by the
Company
Proportion
in the
entity’s
total
equities
Closing book
value
Gains/losses
for report
period
Changes in
owners’
equity in the
report period
Accounting
item
Equity
source
Bank of Jiangsu 38,000,000.00 38,000,000 0.48% 38,000,000.00 0.00 0.00
Long-term
equity
investment
Promoter’s
stock
Total 38,000,000.00 38,000,000 - 38,000,000.00 0.00 0.00 - -
3.5.4 Researches, interviews and visits received during the report period
□Applicable √Inapplicable
3.6 Derivatives investment
□Applicable √Inapplicable
3.6.1 Derivatives investment held at the period-end
□Applicable √Inapplicable
