CHANGCHAI COMPANY, LIMITED
THE FIRST QUARTERLY REPORT FOR YEAR 2012
§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 Director Xue Guojun was not present at the board session for reviewing this quarterly report
due to business reasons and entrusted Director He Jianguang to vote on his behalf.
1.3 The first quarterly financial report for 2012 has not been audited by an accounting firm.
1.4 Person in charge of the Company Mr. Xue Guojun, person in charge of the accounting Mr.
He Jianguang and person in charge of the accounting organization Mr. Jiang He hereby confirm
that the Financial Report enclosed in the Quarterly Report is true and complete.
English Translation for Reference Only. Should there be any discrepancy between the two
versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: RMB
31 Mar. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets 3,017,128,191.00 2,870,088,394.73 5.12%
Equity attributable to owners of
1,818,209,931.26 1,742,701,667.71 4.33%
the Company
Share capital 561,374,326.00 561,374,326.00 0.00%
Net assets per share attributable
3.24 3.10 4.52%
to owners of the Company
Jan.-Mar. 2012 Jan.-Mar. 2011 Increase/decrease (%)
Total sales 845,226,165.76 937,452,656.78 -9.84%
Net profit attributable to owners
13,475,393.55 25,251,344.61 -46.63%
of the Company
Net cash flow arising from
77,207,351.21 -19,733,974.68 ——
operating activities
Net cash flow per share arising
0.14 -0.04 ——
from operating activities
Basic earnings per share 0.03 0.04 -25.00%
Diluted earnings per share 0.03 0.04 -25.00%
Return on equity (%) 0.76 1.22 -0.46
Return on equity after deducting 0.83 1.30 -0.47
extraordinary gains and losses
(%)
Amount from the
Items of extraordinary gains and losses year-begin to the end of
the reporting period
Net non-operating incomes and expenses -186,779.33
Impact on income tax -1,067,001.09
Total -1,253,780.42
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 of the reporting 94,607
period
Shares held by the top ten tradable share holders
Number of tradable
Name of shareholder Type of share
shares held
1. State-owned Assets Supervision & Management
Committee of Changzhou Municipal People's 168,497,736 Renminbi ordinary shares
Government
Domestically listed foreign
2. Li Tao 838,391
share
Domestically listed foreign
3. Sinoauto Company, Ltd. 820,000
share
4. Feng Yan 796,550 Renminbi ordinary shares
5. Ying Juping 745,300 Renminbi ordinary shares
Domestically listed foreign
6. Ma Zeqi 712,500
share
7. Shenzhen Huarong Century Investment Co., Ltd. 692,921 Renminbi ordinary shares
8. Zhu Yixuan 637,888 Renminbi ordinary shares
Domestically listed foreign
9. Guotai Junan Securities (Hong Kong) Limited 616,450
shares
10. Zhu Shuanglian 585,715 Renminbi ordinary 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. Accounts receivable were up 33.19% 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.
2. Inventories were down 20.85 % as compared to the beginning of the year, which was
mainly some stock products prepared by the Company at the year-begin were sold in the
reporting period.
3.Investment income increased RMB8,785,819.08 over the last period, mainly because the
cash dividends from the equities of Foton Motor held by the Company increased RMB
8,670,000.00.
4. Net profit was down 46.63% from a year earlier, which was mainly because market
competition was fierce, selling prices dropped and labor cost rose.
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 reporting 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
Initial Proportion of
Gains/losses in
Type of Securities Short form investment Holding Book value in total securities
No. the reporting
securities code of securities amount number period-end in period-end
period
(Yuan) (%)
LONGi
1 Stock 601012 21,000.00 1000 21,000.00 29.16% 0.00
Stock
Stock YuXing
2 300305 42,000.00 1000 35,360.00 49.10% -6,640.00
Stock
3 Stock 300307 Cixing Stock 17,500.00 500 15,650.00 21.73% -1,850.00
Other securities investments held at the
0.00 - 0.00 0.00% 0.00
period-end
Securities investment gain/loss sold out in the
- - - - 37,505.03
period
Total 80,500.00 - 72,010.00 100% 29,015.03
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 reporting in the reporting shares
amount this calculation
period period
company
Exchange
Financial ass assets of
600166 Foton Motor 41,784,000.00 3.42% 492,745,000.00 0 72,972,500.00 ets available Changcha
for sale i Group
in 1999
Financial ass Agreeme
Ninghu
600377 90,500.00 293,000.00 0 8,500.00 ets available nt
Expressway
for sale transfer
Total 41,874,500.00 493,038,000.00 0 72,981,000.00
3.5.5 Equity of non-listed financial enterprises held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Equity Change in the
Profit and
Initial proportion Book value at owners’ Subject for
Number of loss in the Source of
Name investment in that of the equity in the accounting
shares held reporting shares
amount this period-end reporting calculation
period
company period
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 contracts in the reporting period
□Applicable √Inapplicable
3.5.7 Particulars about reception of researches, communications and interviews in the reporting
period
√Applicable □Inapplicable
Main discussion and the materials
Time Place Way of reception Visitor
provided by the Company
The main operation status of the
23 Feb. 2012 The Company By telephone Individual investor
Company
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. 2012 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 572,027,349.28 553,195,085.90 553,742,666.81 523,688,773.83
Settlement reserves
Lendings to banks and other
financial institutions
Transactional financial assets 72,010.00
Notes receivable 172,195,635.73 164,035,635.73 181,698,938.60 176,278,938.60
Accounts receivable 480,613,268.93 444,489,652.89 360,837,278.55 325,793,527.31
Accounts paid in advance 36,678,225.41 33,430,300.75 42,882,876.51 20,811,380.78
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable 8,670,000.00 8,670,000.00
Other accounts receivable 23,548,692.30 11,011,242.38 11,062,647.69 9,201,636.94
Financial assets purchased
under agreements to resell
Inventories 372,851,989.45 306,376,679.76 471,067,741.38 401,674,909.70
Non-current assets due within 1
year
Other current assets 422,560.36
Total current assets 1,667,079,731.46 1,521,208,597.41 1,621,292,149.54 1,457,449,167.16
Non-current assets:
Entrusted loans and advances
granted
Available-for-sale financial
493,038,000.00 493,038,000.00 420,057,000.00 420,057,000.00
assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 63,763,414.34 134,181,654.34 63,763,414.34 134,181,654.34
Investing property 65,562,308.03 65,562,308.03 66,114,393.23 66,114,393.23
Fixed assets 433,120,669.90 380,712,304.24 428,903,574.63 376,208,390.40
Construction in progress 205,890,148.21 170,795,342.49 180,718,077.33 161,315,910.30
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 87,761,211.74 85,606,042.73 88,327,078.34 86,157,776.66
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 912,707.32 912,707.32 912,707.32 912,707.32
Other non-current assets
Total of non-current assets 1,350,048,459.54 1,330,808,359.15 1,248,796,245.19 1,244,947,832.25
Total assets 3,017,128,191.00 2,852,016,956.56 2,870,088,394.73 2,702,396,999.41
Current liabilities:
Short-term borrowings 37,000,000.00 37,000,000.00
Borrowings from Central Bank
Customer bank deposits and
due to banks and other financial
institutions
Borrowings from banks and
other financial institutions
Transactional financial
liabilities
Notes payable 313,821,904.00 313,821,904.00 278,080,000.00 271,080,000.00
Accounts payable 550,482,874.51 495,478,822.69 495,048,237.44 441,996,929.38
Accounts received in advance 67,222,593.32 67,048,711.44 64,357,833.51 64,183,951.63
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
13,239,674.13 9,896,931.78 45,290,276.02 40,157,951.71
payable
Tax payable -50,124,274.03 -44,629,878.91 -61,296,208.84 -56,938,401.59
Interest payable
Dividend payable 3,891,433.83 3,243,179.97 3,891,433.83 3,243,179.97
Other accounts payable 145,552,037.25 138,795,339.51 128,410,363.38 125,268,578.76
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
30,000,000.00 30,000,000.00
within 1 year
Other current liabilities 1,456,783.78 1,203,137.39
Total current liabilities 1,082,543,026.79 983,655,010.48 1,021,985,072.73 918,992,189.86
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 67,674,525.00 67,674,525.00 56,727,375.00 56,727,375.00
Other non-current liabilities 34,374,420.07 34,374,420.07 34,962,420.07 34,962,420.07
Total non-current liabilities 102,048,945.07 102,048,945.07 91,689,795.07 91,689,795.07
Total liabilities 1,184,591,971.86 1,085,703,955.55 1,113,674,867.80 1,010,681,984.93
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
561,374,326.00 561,374,326.00 561,374,326.00 561,374,326.00
capital)
Capital reserves 556,854,098.76 566,533,284.95 494,820,248.76 504,499,434.95
Less: Treasury stock
Specific reserves
Surplus reserves 277,156,622.37 277,156,622.37 277,156,622.37 277,156,622.37
Provisions for general risks
Retained profits 422,843,704.13 361,248,767.69 409,368,310.58 348,684,631.16
Foreign exchange difference -18,820.00 -17,840.00
Total equity attributable to owners
1,818,209,931.26 1,766,313,001.01 1,742,701,667.71 1,691,715,014.48
of the Company
Minority interests 14,326,287.88 13,711,859.22
Total owners’ equity 1,832,536,219.14 1,766,313,001.01 1,756,413,526.93 1,691,715,014.48
Total liabilities and owners’
3,017,128,191.00 2,852,016,956.56 2,870,088,394.73 2,702,396,999.41
equity
4.2 Income statement
Prepared by Changchai Company, Limited Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 845,226,165.76 842,829,033.77 937,452,656.78 935,811,105.37
Including: Sales income 845,226,165.76 842,829,033.77 937,452,656.78 935,811,105.37
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 838,659,814.86 837,918,967.42 910,235,205.60 911,924,272.30
Including: Cost of sales 785,328,293.06 791,692,366.50 863,987,349.78 871,895,714.02
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate
101,423.38 123,083.63
charges
Selling and distribution
30,761,683.30 28,860,823.62 26,018,546.70 24,201,143.13
expenses
Administrative expenses 25,640,802.83 21,209,113.45 23,670,579.24 19,578,339.85
Financial expenses -3,172,387.71 -3,843,336.15 -3,564,353.75 -3,750,924.70
Asset impairment loss
Add: Gain/(loss) from change in
-8,567.35 -817.06
fair value (“-” means loss)
Gain/(loss) from investment
8,785,819.08 8,670,000.00
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
15,343,602.63 13,580,066.35 27,216,634.12 23,886,833.07
loss)
Add: non-operating income 1,119,939.68 947,989.76 4,275,466.78 4,194,331.81
Less: non-operating expense 1,306,719.01 1,276,719.01 1,410,715.94 1,410,715.94
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) 15,156,823.30 13,251,337.10 30,081,384.96 26,670,448.94
Less: Income tax expense 1,067,001.09 687,200.57 4,474,229.06 4,032,161.55
V. Net profit (“-” means loss) 14,089,822.21 12,564,136.53 25,607,155.90 22,638,287.39
Attributable to owners of the 13,475,393.55 12,564,136.53 25,251,344.61 22,638,287.39
Company
Minority shareholders’
614,428.66 355,811.29
income
VI. Earnings per share
(I) basic earnings per share 0.03 0.04
(II) diluted earnings per
0.03 0.04
share
Ⅶ. Other comprehensive incomes 62,032,870.00 62,033,850.00 -30,395,362.50 -30,395,362.50
Ⅷ. Total comprehensive incomes 76,122,692.21 74,597,986.53 -4,788,206.60 -7,757,075.11
Attributable to owners of the
75,508,263.55 74,597,986.53 -5,144,017.89 -7,757,075.11
Company
Attributable to minority
614,428.66 355,811.29
shareholders
Where there were business combinations under the same control in the reporting period, the
combined parties achieved net profits of RMB 0.00 before the combinations.
4.3 Cash flow statement
Prepared by Changchai Company, Limited Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 845,225,915.69 844,475,915.69 905,918,631.13 892,819,743.15
service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the
central bank
Net increase of funds borrowed
from other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from
reinsurance business
Net increase of deposits of
policy holders and investment
fund
Net increase of disposal of
tradable financial assets
Cash received from interest,
handling charges and
commissions
Net increase of borrowings
from banks and other financial
institutions
Net increase of funds in
repurchase business
Tax refunds received 15,775,618.36 15,775,618.36 13,395,285.48 12,528,363.39
Other cash received relating to
2,363,212.23 2,051,729.67 4,586,628.61 4,413,866.71
operating activities
Subtotal of cash inflows from
863,364,746.28 862,303,263.72 923,900,545.22 909,761,973.25
operating activities
Cash paid for goods and
682,484,772.40 700,908,747.50 830,906,780.11 833,868,581.87
services
Net increase of customer
lendings and advances
Net increase of funds deposited
in the central bank and amount
due from banks
Cash for paying claims of the
original insurance contracts
Cash for paying interest,
handling charges and
commissions
Cash for paying policy
dividends
Cash paid to and for employees 81,527,551.32 72,236,290.78 79,699,240.28 71,993,716.17
Various taxes paid 4,945,592.94 2,556,110.95 12,726,576.51 10,141,395.44
Other cash payment relating to
17,199,478.41 13,704,182.68 20,301,923.00 18,240,244.85
operating activities
Subtotal of cash outflows from
786,157,395.07 789,405,331.91 943,634,519.90 934,243,938.33
operating activities
Net cash flows from operating
77,207,351.21 72,897,931.81 -19,733,974.68 -24,481,965.08
activities
II. Cash flows from investing
activities:
Cash received from disposal of
9,301,144.39
investments
Cash received from return on
115,819.08
investments
Net cash received from disposal
of fixed assets, intangible assets 20,140,600.00 20,094,600.00
and other long-term assets
Net cash received from disposal
of subsidiaries or other business
units
Other cash received relating
79,460.42
to investing activities
Subtotal of cash inflows
9,416,963.47 20,220,060.42 20,094,600.00
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 30,348,254.84 25,596,039.83 30,949,337.15 22,406,549.11
long-term assets
Cash paid for investment 9,381,644.39
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business
units
Other cash payments relating to
10,000,000.00
investing activities
Subtotal of cash outflows from
49,729,899.23 25,596,039.83 30,949,337.15 22,406,549.11
investing activities
Net cash flows from investing
-40,312,935.76 -25,596,039.83 -10,729,276.73 -2,311,949.11
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
20,000,000.00 6,500,000.00
borrowings
Cash received from issuance
of bonds
Other cash received relating to
22,003.10
financing activities
Subtotal of cash inflows from
20,000,000.00 6,522,003.10 0.00
financing activities
Repayment of borrowings 50,000,000.00 30,000,000.00 6,500,000.00
Cash paid for interest
expenses and distribution of 959,773.07 146,600.00 891,542.39 272,706.10
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
to financing activities
Sub-total of cash outflows from
50,959,773.07 30,146,600.00 7,391,542.39 272,706.10
financing activities
Net cash flows from financing
-30,959,773.07 -30,146,600.00 -869,539.29 -272,706.10
activities
IV. Effect of foreign exchange
rate changes on cash and cash -980.00
equivalents
V. Net increase in cash and cash
5,933,662.38 17,155,291.98 -31,332,790.70 -27,066,620.29
equivalents
Add: Cash and cash
470,293,043.20 440,239,150.22 763,106,649.01 727,580,790.13
equivalents at the period-begin
VI. Cash and cash equivalents at
476,226,705.58 457,394,442.20 731,773,858.31 700,514,169.84
the period-end
4.4 Auditor’s report
Auditor’s opinion: un-audited
