CHANGCHAI COMPANY, LIMITED
THE FIRST QUARTERLY REPORT FOR YEAR 2011
§1 Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and senior
executives of the Changchai Company, Limited (hereinafter referred to as the Company) warrant
that this report does not contain any false or misleading statements or omit any material facts and
all information set forth herein are true, accurate and complete.
1.2 None of the directors, supervisors, senior management staffs demonstrated uncertainty or
disagreement about the truthfulness, 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
Shen ningwu Independent Director On business trip Cao huiming
1.4 The first quarterly financial report has not been audited.
1.5 Person in charge of the Company Mr. Xue guojun, person in charge of the accounting Mr. He
Jianguang and person in charge of accounting organizations Mr. Jiang He hereby confirm that the
Financial Report enclosed in the Quarterly Report is true and complete.
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: RMB
Increase/decrease
As at 31 Mar. 2010 As at 31 Dec. 2009
(%)
Total assets 3,399,879,946.81 3,422,525,753.79 -0.66
Owners’ equity (shareholders’
2,073,500,110.75 2,078,644,128.64 -0.25
equity)
Share capital 561,374,326.00 561,374,326.00 0.00
Net assets per share 3.69 3.70 -0.27
Increase/decrease
Jan.-Mar. 2010 Jan.-Mar. 2009
(%)
Total sales 937,452,656.78 769,300,023.37 21.86
Net profit 25,251,344.61 39,894,552.73 -36.70
Net cash flow arising from
-19,733,974.68 -4,050,892.81 ——
operating activities
Net cash flow per share arising
-0.04 -0.01 ——
from operating activities
Basic earnings per share 0.04 0.07 -42.86%
Diluted earnings per share 0.04 0.07 -42.86%
Return on equity (%) 1.22 2.12 Down 0.90
Return on equity after deducting
1.30 2.54 Down 1.24
extraordinary gains and losses(%)
Items of extraordinary gains and losses
Unit: RMB
Amount from the year-begin to
Items of extraordinary gains and losses
the end of reporting period
Net non-operating income and expenses 2,864,750.84
Impact on income tax -4,474,229.06
Total -1,609,478.22
2.2 Total number of shareholders as at the end of reporting period and shares held by the top ten
shareholders not subject to trading moratorium
Unit: Share
Total shareholders at the end
100,051
of report period
Shares held by the top ten tradable shareholders
Number of shares not
Name of shareholder (full name) subject to trading Type of share
moratorium
1. State-owned Assets Supervision &
Management Committee of Changzhou 168,497,736 Renminbi Ordinary Shares
Municipal People's Government
2 、 LIM CHN MSTR FD SPC
LTD-ABSOLUTE RETURN 1,358,800 Domestically listed foreign share
SEGREGATED PORT
3、Xu Jing 960,710 Renminbi Ordinary Shares
4、NORGES BANK 898,350 Domestically listed foreign shares
5 、 LIM ASIA MULTI-STRATEGY
853,400 Domestically listed foreign shares
FUND INC
6、Li Tao 838,391 Domestically listed foreign shares
7、Sinoauto Company,Ltd. 820,000 Domestically listed foreign shares
8、Shenzhen Huarong Century Investment
789,811 Renminbi Ordinary Shares
Co., Ltd.
9、Ma Ze Qi 712,500 Domestically listed foreign shares
10、Zhen Hen 702,604 Domestically listed foreign shares
§3 Significant Events
3.1 Particular about large-margin change of main accounting statement item and financial index
and its reason
√Applicable □Inapplicable
1. Notes receivable were down 32.14% as compared to the beginning of the year, which was
mainly because the Company adopted acceptance bills more often in its payment for material
purchases in the reporting period.
2. Accounts receivable were up 44.67% as compared to the beginning of the year, which was
mainly because the Company properly extended credit to customers according to relevant
agreements and plans in the reporting period so as to attract more customers.
3. Administrative expense was down 47.23% from a year earlier, which was mainly because
the Company enhanced internal management and strictly controlled its expenses in the
reporting period.
4. Financial expense was down from a year earlier, which was mainly because the Company
advanced some payments and received relevant rebates.
5. Net profit was down 36.70% from a year earlier, which was mainly because the
Company’s gross profit rate decreased as a result of the price rise of raw and auxiliary
materials purchased in the reporting period.
3.2 The progress and influence of significant events and the analysis and explanation on
resolving proposal
□Applicable √Inapplicable
3.3 The fulfillment of the commitment made by the Company, shareholders and the actual
controller
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made during
the period from the beginning of the year to the end of the next report period compared with the
same period of the last year according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Whether there is the capital provided by the Company to the controlling shareholders or
other related parties, or external guarantee in violation of established procedure
□Applicable √Inapplicable
3.5.2 Plan to the Share Holdings proposed or implemented by the shareholders holding over 30%
equities of the Company in the reporting period
□Applicable √Inapplicable
3.5.3 Securities investment
√Applicable □Inapplicable
Unit: RMB Yuan
Type of Securities Short form Initial Holding Book value in Proportion of Gains/losses in
No.
securities code of securities investment number period-end total securities the report period
amount in period-end
(Yuan) (%)
Shengjingsh
1 Stock 002525 17,100.00 500 17,100.00 7.88% 0.00
anhe
Dongfeng
2 Fund A00007 200,000.00 200,000 199,977.05 92.12 -817.06
No.6
Other securities investments held in period-end 0.00 - 0.00 0.00% 0.00
Securities investment gain/loss sold out in the
- - - - 83,936.46
period
Total 217,100.00 - 217,077.05 100% 83,119.40
3.5.4 Equity of other listed companies held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Equity
Profit and Change in the
Initial proportion Subject for
Short form of Book value at loss in the owners’ equity Source of
Stock code investment in that of accounting
stock the period-end report in the report shares
amount this calculation
period period
company
Exchange
Financial ass assets of
600166 Foton Motor 41,784,000.00 3.42% 841,351,250.00 0 -35,763,750.00 ets available Changcha
for sale i Group
in 1999
Financial ass Agreeme
Ninghu
600377 90,500.00 336,500.00 0 4,500.00 ets available nt
Expressway
for sale transfer
Total 41,874,500.00 841,687,750.00 0 -35,759,250.00
3.5.5Equity of non-listed financial enterprises held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Equity
Profit and Change in the
Initial proportion Book value at Subject for
Number of loss in the owners’ Source of
Name investment in that of the accounting
shares held report equity in the shares
amount this period-end calculation
period report period
company
long-term
Bank of sponsor
38,000,000.00 38,000,000 0.48% 38,000,000.00 0.00 0.00 equity
Jiangsu shares
investment
Total 38,000,000.00 38,000,000 - 38,000,000.00 0.00 0.00 - -
3.5.6 Significant Contract in the reporting period
□Applicable √Inapplicable
3.5.7 Particulars about reception of researches, communications and interviews in the report
period
□Applicable √Inapplicable
3.6 Investment on derivative products
□Applicable √Inapplicable
3.6.1 Quantity of invested derivative products at the period-end
□Applicable √Inapplicable
§ 4 Attachments
4.1 Balance Sheet
Prepared by Changchai Company, Limited 31 Mar. 2011 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current assets:
Monetary funds 731,773,858.31 700,514,169.84 763,106,649.01 727,580,790.13
Settlement fund reserve
Outgoing call loans
Transactional financial assets 217,077.05 292,091.61
Notes receivable 96,607,228.19 87,637,228.19 142,352,378.25 142,018,290.85
Accounts receivable 551,704,681.66 508,937,533.50 381,350,829.22 338,138,200.12
Accounts paid in advance 41,334,999.29 33,406,821.30 26,774,287.46 26,207,238.46
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve
receivables
Interest receivable
Dividend receivable
Other accounts receivable 26,719,473.39 14,833,083.37 26,169,152.47 14,379,561.94
Financial assets purchased
under agreements to resell
Inventories 316,106,587.00 247,480,852.44 421,623,254.40 360,914,154.92
Non-current assets due
within 1 year
Other current assets 185,355.64
Total current assets 1,764,649,260.53 1,592,809,688.64 1,761,668,642.42 1,609,238,236.42
Non-current assets:
Loans and advances
Available-for-sale financial
841,687,750.00 841,687,750.00 877,447,000.00 877,447,000.00
assets
Held-to-maturity investments
Long-term accounts
receivable
Long-term equity
63,007,887.47 139,347,687.47 63,007,887.47 139,347,687.47
investment
Investing property 67,770,648.83 67,770,648.83 68,322,734.03 68,322,734.03
Fixed assets 438,768,400.79 383,020,744.74 426,833,093.03 371,065,554.46
Construction in process 125,188,527.58 125,132,965.07 125,825,846.40 125,772,036.03
Engineering materials
Fixed asset disposal
Bearer biological assets
Oil and gas assets
Intangible assets 97,882,585.94 95,669,578.45 98,495,664.77 96,270,212.38
Development expense
Goodwill
Long-term expense to be
apportioned
Deferred income tax assets 924,885.67 924,885.67 924,885.67 924,885.67
Other non-current assets
Total of non-current assets 1,635,230,686.28 1,653,554,260.23 1,660,857,111.37 1,679,150,110.04
Total assets 3,399,879,946.81 3,246,363,948.87 3,422,525,753.79 3,288,388,346.46
Current liabilities:
Short-term borrowings 26,000,000.00 26,000,000.00
Borrowings from Central
Bank
Deposits and due to banks
and other financial
institutions
Placements from banks and
other financial institutions
Transactional financial
liabilities
Notes payable 277,878,800.00 263,840,000.00 281,272,700.00 268,580,000.00
Accounts payable 527,426,375.06 483,589,228.19 561,406,743.51 525,392,317.83
Accounts received in
90,628,532.23 87,849,980.48 97,326,286.93 97,179,884.05
advance
Financial assets sold under
agreements to repurchase
Handling charges and
commissions payable
Employee’s compensation
26,858,866.89 21,669,288.04 51,491,411.51 46,464,096.56
payable
Tax payable -4,286,075.36 -1,268,748.46 -18,752,267.69 -15,988,487.82
Interest payable
dividend payable 3,891,433.83 3,243,179.97 3,891,433.83 3,243,179.97
Other accounts payable 156,519,581.99 149,384,624.93 136,395,687.65 132,339,997.54
Due to reinsurers
Insurance contract reserve
Payables for acting trading
securities
Payables for acting
underwriting securities
Non-current liabilities due
within 1 year
Other current liabilities 2,654,876.74 1,034,108.52
Total current liabilities 1,107,572,391.38 1,008,307,553.15 1,140,066,104.26 1,057,210,988.13
Non-current liabilities:
Long-term borrowings 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00
Debentures payable
Long-term payables
Specific payables
Provisions for contingent
liabilities
Deferred income tax
119,971,987.50 119,971,987.50 125,335,875.00 125,335,875.00
liabilities
Other non-current liabilities 56,185,416.63 56,185,416.63 36,185,416.63 36,185,416.63
Total non-current liabilities 206,157,404.13 206,157,404.13 191,521,291.63 191,521,291.63
Total liabilities 1,313,729,795.51 1,214,464,957.28 1,331,587,395.89 1,248,732,279.76
Owner’s equity (or
shareholders’ equity)
Paid-in capital (or share
561,374,326.00 561,374,326.00 561,374,326.00 561,374,326.00
capital)
Capital reserve 853,206,386.26 862,885,572.45 883,601,748.76 893,280,934.95
Less: Treasury Stock
Specific reserve
Surplus reserve 273,072,577.59 273,072,577.59 273,072,577.59 273,072,577.59
General risk provision
Retained earnings 385,846,820.90 334,566,515.55 360,595,476.29 311,928,228.16
Foreign exchange difference
Total owners' equity
2,073,500,110.75 2,031,898,991.59 2,078,644,128.64 2,039,656,066.70
attributable to the Company
Minority interests 12,650,040.55 12,294,229.26
Total owner’s equity 2,086,150,151.30 2,031,898,991.59 2,090,938,357.90 2,039,656,066.70
Total liabilities and owner’s
3,399,879,946.81 3,246,363,948.87 3,422,525,753.79 3,288,388,346.46
equity
4.2 Income Statement
Prepared by Changchai Company, Limited Jan.-Mar. 2011 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 937,452,656.78 935,811,105.37 769,300,023.37 779,323,914.51
Including: Sales 937,452,656.78 935,811,105.37 769,300,023.37 779,323,914.51
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 910,235,205.60 911,924,272.30 721,242,034.23 733,633,973.75
Including: Cost of sales 863,987,349.78 871,895,714.02 652,544,129.35 671,856,978.23
Interests expenses
Handling charges and
commission expenses
Claim expenses-net
Provision for insurance
liability reserve
Expenses for reinsurance
accepted
Payments on surrenders
Policyholder dividends
Taxes and associate charges 123,083.63 51,870.10
Selling and distribution
26,018,546.70 24,201,143.13 23,605,574.48 20,999,506.99
expenses
Administrative expenses 23,670,579.24 19,578,339.85 44,857,602.26 41,361,204.77
Financial expense -3,564,353.75 -3,750,924.70 182,858.04 -583,716.24
Impairment loss
Add: gain/(loss) from change
-817.06
in fair value (“-” means loss)
Gain/(loss) from investment
7,214.60
(“-” means loss)
Including: income form
investment on affiliated
enterprise and jointly
enterprise
Foreign exchange difference
(“-” means loss)
III. Business profit (“-”
27,216,634.12 23,886,833.07 48,065,203.74 45,689,940.76
means loss)
Add: non-business income 4,275,466.78 4,194,331.81 2,471,450.22 2,297,352.49
Less: non-business expense 1,410,715.94 1,410,715.94 2,010,269.15 1,939,353.55
Including: loss from
non-current asset disposal
IV. Total profit (“-” means
30,081,384.96 26,670,448.94 48,526,384.81 46,047,939.70
loss)
Less: Tax expense 4,474,229.06 4,032,161.55 8,320,558.36 7,780,967.49
V. Net profit (“-” means
25,607,155.90 22,638,287.39 40,205,826.45 38,266,972.21
loss)
Attributable to parent
25,251,344.61 22,638,287.39 39,894,552.73 38,266,972.21
company
Minority interest 355,811.29 311,273.72
VI. Earnings per share
(I) basic earnings per share 0.04 0.07
(II) diluted earnings per
0.04 0.07
share
VII. Other consolidated
income
VIII. Total consolidated
25,607,155.90 22,638,287.39 40,205,826.45 38,266,972.21
income
Total consolidated income
attributable to owners of 25,251,344.61 22,638,287.39 39,894,552.73 38,266,972.21
parent company
Total consolidated income
attributable to minority 355,811.29 311,273.72
shareholders
4.3 Cash Flow Statement
Prepared by Changchai Company, Limited Jan.- Mar. 2011 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
1. Cash flows for operating
activities:
Cash received from sales of
905,918,631.13 892,819,743.15 731,548,900.94 730,827,206.89
goods or rending of services
Cash received on deposits
and from banks and other
financial institutions
Net increased cash received
on borrowings from central
bank
Cash received on placements
from other financial
institutions
Premium received
Cash received from
reinsurance
Net increased amount
received on policyholder
deposit and investment
Cash received from disposal
of held for trading financial
assets
Interests, handling charges
and commission received
Cash received on placements
from bank, net
Cash received under
repurchasing, net
Refund of tax and fare
13,395,285.48 12,528,363.39
received
Other cash received relating
4,586,628.61 4,413,866.71 4,264,889.64 4,126,789.34
to operating activities
Sub-total of cash inflows 923,900,545.22 909,761,973.25 735,813,790.58 734,953,996.23
Cash paid for goods and
830,906,780.11 833,868,581.87 646,286,674.02 647,052,618.19
services
Loans and advances drawn
Cash paid to central bank,
banks and other financial
institutions, net
Claims paid
Interests, handling charges
and commission paid
Dividends paid to
policyholders
Cash paid to and on behalf of
79,699,240.28 71,993,716.17 63,004,883.51 58,217,839.57
employees
Tax and fare paid 12,726,576.51 10,141,395.44 11,548,555.19 10,141,395.44
Other cash paid relating to
20,301,923.00 18,240,244.85 19,024,570.67 18,554,580.67
operating activities
Sub-total of cash outflows 943,634,519.90 934,243,938.33 739,864,683.39 733,966,433.87
Net cash flow from operating
-19,733,974.68 -24,481,965.08 -4,050,892.81 987,562.36
activities
2. Cash Flows from
Investment Activities:
Cash received from return of
investments
Cash received from 7,214.60
investment income
Net cash received from
disposal of fixed assets,
20,140,600.00 20,094,600.00 745,280.23 745,280.23
intangible assets and other
long-term assets
Proceeds from sale of
subsidiaries and other
operating units
Other cash received relating
79,460.42
to investment activities
Sub-total of cash inflows 20,220,060.42 20,094,600.00 752,494.83 745,280.23
Cash paid for acquiring fixed
assets, intangible assets and 30,949,337.15 22,406,549.11 32,890,003.49 32,355,504.48
other long-term assets
Cash paid for acquiring
30,000,000.00
investments
Net cash used in loans
Net cash used in acquiring
subsidiaries and other
operating units
Other cash paid relating to
investment activities
Sub-total of cash outflows 30,949,337.15 22,406,549.11 32,890,003.49 62,355,504.48
Net cash flow from investing
-10,729,276.73 -2,311,949.11 -32,137,508.66 -61,610,224.25
activities
3. Cash Flows from
Financing Activities:
Cash received from
absorbing investment
Including: Cash received
from increase in minority
interest
Cash received from
6,500,000.00 35,000,000.00 30,000,000.00
borrowings
Cash received from issuing
debentures
Other proceeds relating to
22,003.10
financing activities
Sub-total of cash inflows 6,522,003.10 0.00 35,000,000.00 30,000,000.00
Cash paid for settling debt 6,500,000.00 5,000,000.00
Cash paid for distribution of
dividends or profit or 891,542.39 272,706.10 1,654,970.64 1,229,231.61
reimbursing interest
Including: dividends or profit
paid to minority interest
Other cash payments relating
to financing activities
Sub-total of cash outflows 7,391,542.39 272,706.10 6,654,970.64 1,229,231.61
Net cash flow from financing
-869,539.29 -272,706.10 28,345,029.36 28,770,768.39
activities
4. Effect of foreign exchange
rate changes
5. Increase in cash and cash
-31,332,790.70 -27,066,620.29 -7,843,372.11 -31,851,893.50
equivalents
Add : Cash and cash
763,106,649.01 727,580,790.13 770,721,154.44 732,773,854.30
equivalents at year-begin
6.Cash and cash equivalents
731,773,858.31 700,514,169.84 762,877,782.33 700,921,960.80
at the end of the year
4.4 Auditor’s report
Audit opinion: Unaudited
Board of Directors of
Changchai Company, Limited
Apr.22,2011
