CHANGCHAI COMPANY, LIMITED
THE THIRD QUARTERLY REPORT 2012
I. Important Notes
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management of 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 will take individual and/or joint responsibility for the
authenticity, accuracy and completeness of all contents set forth herein.
All directors attended the board session for reviewing this report.
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 (Accounting principal) hereby confirm that the
Financial Report enclosed in the Quarterly Report is factual and complete.
II. Company Profile
(I) Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
□ Yes √ No □ Inapplicable
30 Sept. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (RMB Yuan) 3,075,768,564.99 2,870,088,394.73 7.17
Owners’ equity attributable to shareholders of the
Company (RMB Yuan) 1,795,139,835.13 1,742,701,667.71 3.01
Share capital (share) 561,374,326.00 561,374,326.00 0.00
Net assets per share attributable to shareholders of
the Company (RMB Yuan/share) 3.20 3.10 3.23
YoY YoY
Jul.-Sept. 2012 increase/decreas Jan.-Sept. 2012 increase/decreas
e (%) e (%)
Gross operating revenues (RMB Yuan) 671,172,774.03 -6.44 2,270,652,986.78 -6.17
Net profit attributable to shareholders of the
Company (RMB Yuan) 13,019,902.39 14.77 42,822,340.86 -11.71
Net cash flow from operating activities (RMB
Yuan) -- -- 249,254,713.34 --
Net cash flow per share from operating activities
(RMB Yuan/share) -- -- 0.44 --
Basic EPS (RMB Yuan/share) 0.02 0.00 0.08 -11.11
Diluted EPS (RMB Yuan/share) 0.02 0.00 0.08 -11.11
Weighted average ROE (%) 0.71 0.09 2.42 -0.25
Weighted average ROE after deducting
non-recurring gains and losses (%) 0.59 0.00 2.04 -0.29
1
Items of non-recurring gains and losses
√Applicable □Inapplicable
Amount during
Item Jan.-Sept. 2012 (RMB Notes
Yuan)
Of which: RMB 2, 624,696.90 is the net
Gains and losses on disposal of non-current assets 2,624,696.90
gains on disposal of fixed assets.
Tax rebate, reduction or exemption due to un-authorized
approval or the lack of formal approval documents
Government grants recognized in the current year, except for
those acquired in the ordinary course of business or granted
3,200,000.00
at certain quotas or amounts according to the country’s
unified standards
Capital occupation fees received from non-financial
750,000.00
enterprises that are included in current gains and losses
Gains generated when the investment costs of the Company’s
acquiring subsidiaries, associates and joint ventures are less
than the fair value of identifiable net assets in the investees
attributable to the Company in the acquisition of the
investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or
manage assets
Various asset impairment provisions due to acts of God such
as natural disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on
employee settlement and integration
Gains and losses on the parts exceeding the fair value when
prices of transactions become unfair
Net current gains and losses from the period-begin to the
combination date of subsidiaries due to business
combinations under the same control
Gains and losses on contingent matters which are irrelevant
to the normal operation of the Company
Gains and losses on fair value changes of transactional
financial assets and liabilities, and investment gains on
Investment income gained from disposal of
disposal of transactional financial assets and liabilities and 248,634.25
transactional financial assets.
available-for-sale financial assets, except for the effective
hedging business related to the Company’s normal operation
Reversal of impairment provisions for accounts receivable
which are separately tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing properties
for which the fair value method is adopted for subsequent
measurement
Current gain and loss effect due to a just-for-once adjustment
to current gains and losses according to requirements of
taxation and accounting laws and regulations
Custodian fee income from entrusted operations with the
Company
Other non-operating incomes and expenses besides the items
1,142,523.35
above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects -13,308.64
2
Income tax effects -1,292,924.50
Total 6,659,621.36 --
(II) Total number of shareholders and top 10 shareholders at the period-end
Total number of shareholders 88,789
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable Type and number of shares
Name of shareholder shares held at
period-end Type Number
State-owned Assets Supervision and Administration
168,497,736 RMB ordinary shares 168,497,736
Commission of Changzhou Municipal Government
Liu Ying 1,607,144 RMB ordinary shares 1,607,144
Wang Zhinan 1,373,040 RMB ordinary shares 1,373,040
Xi Yanping 1,092,500 RMB ordinary shares 1,092,500
Dai Ge 885,247 RMB ordinary shares 885,247
GUOTAI JUNAN SECURITIES(HONGKONG) Domestically listed
883,450 883,450
LIMITED foreign shares
Domestically listed
Li Tao 838,391 838,391
foreign shares
Domestically listed
Sinoauto Company,Ltd. 820,000 820,000
foreign shares
Feng Yan 796,850 RMB ordinary shares 796,850
Li Weidong 747,299 RMB ordinary shares 747,299
Notes of particulars of shareholders Naught
III. Significant Events
(I) Significant changes in major accounting data, financial highlights and reasons for these changes
√Applicable □Inapplicable
1. Accounts receivable increased 36.88% over the year-begin, which was mainly because in the sale of the first
three quarters of the year, the Company properly extended credit to customers according to relevant agreements
and plans so as to attract more customers.
2.Other accounts receivable increased 102.37% over the year-begin, which was mainly because the Company’s
subsidiary—Changzhou Housheng Investment Co., Ltd. provided temporary loan to its supplier of Xuzhou East
China Casting General Factory.
3. Inventory decreased 102.37% over the year-begin, which was mainly because some stocks prepared by the
Company at the year-begin were sold during the first three quarters of the year.
4. Payroll payable decreased 61.68% over the year-begin, which was mainly because some of the salary
provisions made at the period-begin were paid during the reporting period.
(II) Progress of significant events and its influence, as well as the analysis and explanation on
solutions
1. About non-standard audit opinion
□Applicable √Inapplicable
3
2. The Company offers capital to the controlling shareholder or its related parties or provides external
guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
3. Signing and execution of significant contracts concerning routine operation
□Applicable √Inapplicable
4. Others
□Applicable √Inapplicable
(III) Commitments of the Company or shareholders with an over 5% shareholding made in or carried
down into the reporting period
□Applicable √Inapplicable
(IV) Predict the 2012 annual operating results
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
(V) Other significant events that need to be explained
1. Securities investment
√Applicable □Inapplicable
Proportion in
Number of
Initial Closing the total Gain/loss in
shares held at
Serial Variety of Code of Abbr. of investment carrying closing the reporting
the
No. securities securities securities amount amount securities period (RMB
period-end
(RMB Yuan) (RMB Yuan) investment Yuan)
(Share)
amount (%)
Other securities investments held at the period-end 0 -- 0 0 0
Gain/loss on selling securities in the reporting period -- -- -- -- 248,634.25
Total 0 -- 0 100% 248,634.25
Disclosure date of the board announcement of securities
——
investment approval
Disclosure date of the general meeting announcement of
——
securities investment approval
Notes to securities investment: Securities investment gains during the reporting period came from the new shares
subscribed by Changzhou Housheng Investment Co., Ltd., the Company’s wholly-funded subsidiary.
2. Investments in derivatives
□Applicable √Inapplicable
4
3. Derivative investments held at the period-end
□Applicable √Inapplicable
4. Researches, visits and interviews received in the reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
Main situation of the
23 Feb. 2012 The Company By phone Individual Investor
Company’s operation
Main situation of the
18 Apr. 2012 The Company By phone Individual Investor
Company’s operation
Main situation of the
24 May 2012 The Company By phone Individual Investor
Company’s operation
5. Corporate bonds issued
Any corporate bonds issued?
□ Yes √ No
IV. Appendix
(I) Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The currency unit for data of the financial statements below is RMB Yuan unless otherwise specified.
1. Consolidated balance sheet
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 675,153,278.92 553,742,666.81
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 196,865,867.00 181,698,938.60
Accounts receivable 493,914,263.53 360,837,278.55
Accounts paid in advance 25,622,680.75 42,882,876.51
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 22,387,544.06 11,062,647.69
5
Financial assets purchased under agreements to resell
Inventories 314,338,288.36 471,067,741.38
Non-current assets due within 1 year
Other current assets 42,561.36
Total current assets 1,728,324,483.98 1,621,292,149.54
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 444,576,500.00 420,057,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 63,816,940.34 63,763,414.34
Investing property 64,458,137.63 66,114,393.23
Fixed assets 550,940,297.35 428,903,574.63
Construction in progress 136,108,332.06 180,718,077.33
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 86,631,166.31 88,327,078.34
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 912,707.32 912,707.32
Other non-current assets
Total of non-current assets 1,347,444,081.01 1,248,796,245.19
Total assets 3,075,768,564.99 2,870,088,394.73
Current liabilities:
Short-term borrowings 40,000,000.00 37,000,000.00
Borrowings from Central Bank
Customer bank deposits and due to banks and other financial
institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 315,895,260.00 278,080,000.00
Accounts payable 571,239,650.42 495,048,237.44
Accounts received in advance 70,288,237.89 64,357,833.51
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 17,354,396.43 45,290,276.02
Tax payable -35,545,297.54 -61,296,208.84
Interest payable
Dividend payable 3,891,433.83 3,891,433.83
6
Other accounts payable 158,521,115.36 128,410,363.38
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of securities
Non-current liabilities due within 1 year 30,000,000.00
Other current liabilities 1,697,819.62 1,203,137.39
Total current liabilities 1,143,342,616.01 1,021,985,072.73
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 60,405,300.00 56,727,375.00
Other non-current liabilities 63,115,720.07 34,962,420.07
Total non-current liabilities 123,521,020.07 91,689,795.07
Total liabilities 1,266,863,636.08 1,113,674,867.80
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 515,661,823.76 494,820,248.76
Less: Treasury stock
Specific reserves
Surplus reserves 277,156,622.37 277,156,622.37
Provisions for general risks
Retained profits 440,963,164.92 409,368,310.58
Foreign exchange difference -16,101.92 -17,840.00
Total equity attributable to owners of the Company 1,795,139,835.13 1,742,701,667.71
Minority interests 13,765,093.78 13,711,859.22
Total owners’ (or shareholders’) equity 1,808,904,928.91 1,756,413,526.93
Total liabilities and owners’ (or shareholders’) equity 3,075,768,564.99 2,870,088,394.73
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang Chief of the accounting division:
Jiang He
2. Balance sheet of the Company
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 617,416,760.40 523,688,773.83
Transactional financial assets
Notes receivable 196,465,867.00 176,278,938.60
7
Accounts receivable 449,247,842.64 325,793,527.31
Accounts paid in advance 14,314,271.14 20,811,380.78
Interest receivable
Dividend receivable
Other accounts receivable 8,587,984.82 9,201,636.94
Inventories 258,211,204.72 401,674,909.70
Non-current assets due within 1 year
Other current assets
Total current assets 1,544,243,930.72 1,457,449,167.16
Non-current assets:
Available-for-sale financial assets 444,576,500.00 420,057,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 184,235,180.34 134,181,654.34
Investing property 64,458,137.63 66,114,393.23
Fixed assets 501,114,323.08 376,208,390.40
Construction in progress 74,570,226.47 161,315,910.30
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 84,502,574.87 86,157,776.66
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 912,707.32 912,707.32
Other non-current assets
Total of non-current assets 1,354,369,649.71 1,244,947,832.25
Total assets 2,898,613,580.43 2,702,396,999.41
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 304,895,260.00 271,080,000.00
Accounts payable 516,463,142.58 441,996,929.38
Accounts received in advance 70,114,356.01 64,183,951.63
Employee’s compensation payable 13,382,178.23 40,157,951.71
Tax payable -28,209,748.17 -56,938,401.59
Interest payable
Dividend payable 3,243,179.97 3,243,179.97
Other accounts payable 154,071,670.25 125,268,578.76
Non-current liabilities due within 1 year 30,000,000.00
Other current liabilities
8
Total current liabilities 1,033,960,038.87 918,992,189.86
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 60,405,300.00 56,727,375.00
Other non-current liabilities 63,115,720.07 34,962,420.07
Total non-current liabilities 123,521,020.07 91,689,795.07
Total liabilities 1,157,481,058.94 1,010,681,984.93
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 561,374,326.00 561,374,326.00
Capital reserves 525,341,009.95 504,499,434.95
Less: Treasury stock
Specific reserves
Surplus reserves 277,156,622.37 277,156,622.37
Provisions for general risks
Retained profits 377,260,563.17 348,684,631.16
Foreign exchange difference
Total owners’ (or shareholders’) equity 1,741,132,521.49 1,691,715,014.48
Total liabilities and owners’ (or shareholders’) equity 2,898,613,580.43 2,702,396,999.41
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
3. Consolidated income statement for the reporting period
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total operating revenues 671,172,774.03 717,404,575.83
Including: Sales income 671,172,774.03 717,404,575.83
Interest income 0.00 0.00
Premium income 0.00 0.00
Handling charge and commission income 0.00 0.00
II. Total operating cost 659,159,825.77 704,121,102.81
Including: Cost of sales 606,064,417.86 658,013,282.50
Interest expenses 0.00 0.00
Handling charge and commission expenses 0.00 0.00
Surrenders 0.00 0.00
Net claims paid 0.00 0.00
Net amount withdrawn for the insurance contract
reserve 0.00 0.00
9
Expenditure on policy dividends 0.00 0.00
Reinsurance premium 0.00 0.00
Taxes and associate charges 122,595.54 39,732.82
Selling and distribution expenses 29,155,061.50 21,292,914.25
Administrative expenses 29,230,879.36 29,973,163.76
Financial expenses -5,413,128.49 -5,313,911.20
Asset impairment loss 0.00 115,920.68
Add: Gain/(loss) from change in fair value (“-” means loss) 0.00 66,665.37
Gain/(loss) from investment (“-” means loss) 391,280.02 662,630.60
Including: share of profits in associates and joint ventures 0.00 0.00
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 12,404,228.28 14,012,768.99
Add: non-operating income 3,548,061.58 1,597,650.72
Less: non-operating expense 849,480.87 1,087,204.64
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) 15,102,808.99 14,523,215.07
Less: Income tax expense 2,248,761.65 2,926,708.23
V. Net profit (“-” means loss) 12,854,047.34 11,596,506.84
Including: Net profit achieved by combined parties before
the combinations
Attributable to owners of the Company 13,019,902.39 11,344,048.95
Minority shareholders’ income -165,855.05 252,457.89
VI. Earnings per share 0.00
(I) Basic earnings per share 0.02 0.02
(II) Diluted earnings per share 0.02 0.02
VII. Other comprehensive incomes -61,473,445.00 -76,770,300.00
VIII. Total comprehensive incomes -48,619,397.66 -65,173,793.16
Attributable to owners of the Company -48,453,542.61 -65,426,251.05
Attributable to minority shareholders -165,855.05 252,457.89
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
4. Income statement of the Company for the reporting period
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total sales 672,295,030.38 701,132,650.12
Less: cost of sales 612,557,291.91 648,525,159.87
Business taxes and surcharges
Distribution expenses 28,410,037.87 19,694,458.28
Administrative expenses 25,069,050.95 25,925,361.25
Financial costs -6,052,706.17 -5,688,860.58
10
Impairment loss 0.00 191,589.46
Add: gain/(loss) from change in fair value (“-” means loss) 0.00
Gain/(loss) from investment (“-” means loss) 0.00
Including: income form investment on associates and
joint ventures 0.00
II. Business profit (“-” means loss) 12,311,355.82 12,484,941.84
Add: non-business income 3,485,979.08 1,501,816.70
Less: non-business expense 849,480.87 907,204.64
Including: loss from non-current asset disposal 0.00
III. Total profit (“-” means loss) 14,947,854.03 13,079,553.90
Less: income tax expense 2,341,622.96 2,546,977.59
IV. Net profit (“-” means loss) 12,606,231.07 10,532,576.31
V. Earnings per share --
(I) Basic earnings per share 0.02 0.02
(II) Diluted earnings per share 0.02 0.02
VI. Other comprehensive income -61,457,343.08 -76,770,300.00
VII. Total comprehensive income -48,851,112.01 -66,237,723.69
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
5. Consolidated income statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total operating revenues 2,270,652,986.78 2,419,952,685.07
Including: Sales income 2,270,652,986.78 2,419,952,685.07
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 2,236,396,291.76 2,375,953,265.63
Including: Cost of sales 2,079,015,811.58 2,221,767,267.72
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 charges 284,569.97 352,978.07
Selling and distribution expenses 87,571,361.21 74,474,811.16
Administrative expenses 77,372,786.60 89,803,118.94
Financial expenses -12,070,987.91 -10,989,371.65
11
Asset impairment loss 4,222,750.31 544,461.39
Add: Gain/(loss) from change in fair value (“-” means loss) 0.00
Gain/(loss) from investment (“-” means loss) 9,345,269.21 10,944,941.80
Including: share of profits in associates and joint
ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 43,601,964.23 54,944,361.24
Add: non-operating income 10,658,002.42 10,600,239.05
Less: non-operating expense 3,628,699.67 3,463,235.23
Including: loss from non-current asset disposal 601,158.15 679.5
IV. Total profit (“-” means loss) 50,631,266.98 62,081,365.06
Less: Income tax expense 7,755,691.56 12,557,874.83
V. Net profit (“-” means loss) 42,875,575.42 49,523,490.23
Including: Net profit achieved by combined parties before
the combinations
Attributable to owners of the Company 42,822,340.86 48,500,663.65
Minority shareholders’ income 53,234.56 1,022,826.58
VI. Earnings per share
(I) Basic earnings per share 0.08 0.09
(II) Diluted earnings per share 0.08 0.09
VII. Other comprehensive incomes 20,825,473.08 -289,309,825.00
VIII. Total comprehensive incomes 63,701,048.50 -239,786,334.77
Attributable to owners of the Company 63,647,813.94 -240,809,161.35
Attributable to minority shareholders 53,234.56 1,022,826.58
Where business mergers under the same control occurred from 1 Jan. 2012 to 30 Sept. 2012, the net profit achieved by the merged
parties before the business mergers was RMB 0.
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
6. Income statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total sales 2,279,355,189.12 2,399,918,675.77
Less: cost of sales 2,109,491,494.48 2,225,054,409.25
Business taxes and surcharges
Distribution expenses 83,359,214.53 69,751,471.22
Administrative expenses 66,420,036.70 77,631,247.87
Financial costs -14,208,899.98 -11,773,361.58
Impairment loss 2,873,555.97 497,121.16
Add: gain/(loss) from change in fair value (“-” means loss) 0.00
Gain/(loss) from investment (“-” means loss) 8,723,526.00 10,115,000.00
Including: income form investment on associates and
joint ventures
II. Business profit (“-” means loss) 40,143,313.42 48,872,787.85
12
Add: non-business income 10,358,441.19 10,335,983.27
Less: non-business expense 3,598,699.67 3,267,411.49
Including: loss from non-current asset disposal
III. Total profit (“-” means loss) 46,903,054.94 55,941,359.63
Less: income tax expense 7,099,636.41 10,752,028.41
IV. Net profit (“-” means loss) 39,803,418.53 45,189,331.22
V. Earnings per share -- --
(I) Basic earnings per share 0.07 0.08
(II) Diluted earnings per share 0.07 0.08
VI. Other comprehensive income 20,841,575.00 -289,309,825.00
VII. Total comprehensive income 60,644,993.53 -244,120,493.78
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
7. Consolidated cash flow statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
service 2,479,975,403.78 2,383,560,332.63
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 intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 35,367,420.36 32,867,492.58
Other cash received relating to operating activities 22,976,306.45 15,249,503.37
Subtotal of cash inflows from operating activities 2,538,319,130.59 2,431,677,328.58
Cash paid for goods and services 2,002,703,541.64 2,302,191,554.95
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
13
Cash for paying policy dividends
Cash paid to and for employees 210,280,450.37 202,548,309.30
Various taxes paid 18,164,480.31 40,581,167.79
Other cash payment relating to operating activities 57,915,944.93 60,567,089.57
Subtotal of cash outflows from operating activities 2,289,064,417.25 2,605,888,121.61
Net cash flows from operating activities 249,254,713.34 -174,210,793.03
II. Cash flows from investing activities:
Cash received from withdrawal of investments 25,411,478.96 301,022.70
Cash received from return on investments 9,291,743.21 11,117,165.30
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 3,919,173.12 20,489,503.33
Net cash received from disposal of subsidiaries or other
business units
Other cash received relating to investing activities 5,190,000.00
Subtotal of cash inflows from investing activities 38,622,395.29 37,097,691.33
Cash paid to acquire fixed assets, intangible assets and other
long-term assets 110,045,831.74 108,903,627.66
Cash paid for investment 25,314,584.51
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities 10,000,000.00
Subtotal of cash outflows from investing activities 145,360,416.25 108,903,627.66
Net cash flows from investing activities -106,738,020.96 -71,805,936.33
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received from borrowings 38,000,000.00 53,000,000.00
Cash received from issuance of bonds
Other cash received relating to financing activities 0.00
Subtotal of cash inflows from financing activities 38,000,000.00 53,000,000.00
Repayment of borrowings 65,000,000.00 42,000,000.00
Cash paid for interest expenses and distribution of dividends
or profit 15,140,354.74 3,407,268.67
Including: dividends or profit paid by subsidiaries to
minority shareholders
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 80,140,354.74 45,407,268.67
Net cash flows from financing activities -42,140,354.74 7,592,731.33
IV. Effect of foreign exchange rate changes on cash and cash
equivalents -16,101.92 -5,458.08
V. Net increase in cash and cash equivalents 100,360,235.72 -238,429,456.11
Add: Opening balance of cash and cash equivalents 470,293,043.20 763,106,649.01
VI. Closing balance of cash and cash equivalents 570,653,278.92 524,677,192.90
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Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
8. Cash flow statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Changchai Company, Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
service 2,468,469,003.67 2,381,649,837.76
Tax refunds received 33,832,517.49 32,000,570.49
Other cash received relating to operating activities 21,697,903.64 14,276,155.80
Subtotal of cash inflows from operating activities 2,523,999,424.80 2,427,926,564.05
Cash paid for goods and services 2,020,830,436.91 2,353,504,480.19
Cash paid to and for employees 187,784,743.36 178,631,425.91
Various taxes paid 14,261,545.55 33,111,496.23
Other cash payment relating to operating activities 48,763,109.45 55,425,007.34
Subtotal of cash outflows from operating activities 2,271,639,835.27 2,620,672,409.67
Net cash flows from operating activities 252,359,589.53 -192,745,845.62
II. Cash flows from investing activities:
Cash received from retraction of investments
Cash received from return on investments 8,670,000.00 10,115,000.00
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 3,876,030.24 20,143,379.50
Net cash received from disposal of subsidiaries or other
business units
Other cash received relating to investing activities 5,190,000.00
Subtotal of cash inflows from investing activities 12,546,030.24 35,448,379.50
Cash paid to acquire fixed assets, intangible assets and other
long-term assets 88,643,351.47 85,295,916.52
Cash paid for investment 50,000,000.00 1,278,440.00
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 138,643,351.47 86,574,356.52
Net cash flows from investing activities -126,097,321.23 -51,125,977.02
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities
Repayment of borrowings 30,000,000.00
Cash paid for interest expenses and distribution of dividends
or profit 12,584,658.12 1,476,035.37
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Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 42,584,658.12 1,476,035.37
Net cash flows from financing activities -42,584,658.12 -1,476,035.37
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 83,677,610.18 -245,347,858.01
Add: Opening balance of cash and cash equivalents 440,239,150.22 727,580,790.13
VI. Closing balance of cash and cash equivalents 523,916,760.40 482,232,932.12
Legal representative: Xue Guojun Person-in-charge of the accounting work: He Jianguang
Chief of the accounting division: Jiang He
(II) Audit report
Auditor’s opinion Un-audited
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