The Abstract of the 2015 Annual Report of Changchai Company, Limited
Stock Code: 000570, 200570 Stock Abbr.: Changchai A, Changchai B Public Announcement No.: 2016-001
Changchai Company, Limited
The Abstract of the 2015 Annual Report
I. Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating
results, financial condition and future development planning of the Company, investors are kindly reminded to
read the full text carefully on the media designated by the China Securities Regulatory Commission (the
“CSRC”).
This Abstract is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
Auditor’s non-standard opinion
□ Applicable √ Inapplicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
√ Applicable □ Inapplicable
Share capital increase from the capital reserve
□ Yes √ No
Preliminary plan for profit distribution to the common shareholders for the reporting period which has been
reviewed and approved at the board meeting: Based on the total 561,374,326 shares, a cash dividend of RMB0.23
(tax included) will be distributed to all the shareholders for every 10 shares that they hold. No bonus shares will
be granted and no capital reserve will be turned into share capital.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been
reviewed and approved at the board meeting
□ Applicable √ Inapplicable
Company profile
Changchai A, Changchai
Stock abbr. Stock code 000570, 200570
B
Stock exchange Shenzhen Stock Exchange
Contact information Company Secretary Securities Affairs Representative
Name Shi Jianchun He Jianjiang
123 Huaide Middle Road, Changzhou, 123 Huaide Middle Road, Changzhou,
Office address
Jiangsu, China Jiangsu, China
Fax (86)519-86630954 (86)519-86630954
Tel. (86)519-86610041 (86)519-68683155
E-mail address ccsjc@changchai.com cchjj@changchai.com
II. Brief introduction to the main business or products in the reporting period
As a manufacturer, we specialize in the manufacture and sale of diesel engines, diesel engine fittings and castings,
gasoline engines, gasoline engine fittings, cereal harvesting machinery, rotovators, walking tractors, molds and
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The Abstract of the 2015 Annual Report of Changchai Company, Limited
jigs as well as the assembly and sale of diesel engine and gasoline engine supporting sets.
We mainly manufacture and sell small and medium-sized single-cylinder and multi-cylinder diesel engines under
the brand of “Changchai”, which are often used in tractors, combine-harvesters, light commercial vehicles,
agriculture equipment, small-sized engineering machinery, generator sets, ship machines, etc.
III. Accounting and financial highlights
1. Accounting and financial highlights for the past three years
Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the
accounting policy or corrections of accounting errors?
□ Yes √ No
Unit: RMB Yuan
Increase/decrease of
2015 2014 current year over last 2013
year
Operating revenues 2,519,799,547.29 2,489,792,063.33 1.21% 2,927,593,052.78
Net profits attributable to
71,102,792.49 64,202,144.29 10.75% 75,712,361.04
shareholders of the Company
Net profits attributable to
shareholders of the Company
61,588,462.29 58,685,034.57 4.95% 71,950,142.51
after extraordinary gains and
losses
Net cash flows from operating
127,926,882.95 -51,507,355.52 —— 31,406,848.48
activities
Basic EPS (RMB Yuan/share) 0.13 0.11 18.18% 0.13
Diluted EPS (RMB Yuan/share) 0.13 0.11 18.18% 0.13
Weighted average ROE (%) 3.53% 3.28% 0.25% 4.14%
Increase/decrease of
As at 31 Dec. As at 31 Dec. As at 31 Dec.
current year-end than
2015 2014 2013
last year-end
Total assets 3,232,406,102.20 3,166,783,758.18 2.07% 3,082,340,149.65
Net assets attributable to
2,002,910,311.01 1,936,936,835.27 3.41% 1,809,577,062.45
shareholders of the Company
2. Accounting highlights by quarter
Unit: RMB Yuan
Q1 Q2 Q3 Q4
Operating revenues 650,305,530.50 709,590,370.19 815,273,308.97 344,630,337.63
Net profits attributable to
17,279,138.61 20,284,260.57 36,184,587.95 -2,645,194.64
shareholders of the Company
Net profits attributable to
shareholders of the Company
15,137,500.97 20,573,118.31 35,546,486.10 -9,668,643.09
after extraordinary gains and
losses
Net cash flows from operating
1,795,087.91 44,932,653.21 48,916,342.35 32,282,799.48
activities
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The Abstract of the 2015 Annual Report of Changchai Company, Limited
Any material differences between the financial indicators above or their summations and those which have been
disclosed in quarterly or semi-annual reports?
□ Yes √ No
IV. Share capital and shareholders
1. Numbers of the common shareholders and the preference shareholders with resumed voting rights as
well as the shareholdings of the top 10 shareholders
Unit: share
Total number of
Total number
Total number preference
of common
Total number of preference shareholders with
shareholders at
of common shareholders resumed voting
57,048 pervious 54,693 0 0
shareholders with resumed rights at pervious
month-end of
at period-end voting rights at month-end of this
this Report’s
period-end Report’s
disclosure
disclosure
Shareholdings of top 10 shareholders
Shareholdin Total shares Number of Pledged or frozen shares
Nature of
Name of shareholder g held at restricted Status of Number of
shareholder
percentage period-end shares held shares shares
State-owned Assets
Supervision and
On behalf of
Administration Commission 30.43% 170,845,236 0
the State
of Changzhou Municipal
People’s Government
Domestic
Huang Lihou 1.02% 5,705,000 0
individual
Overseas
KGI Asia Limited 0.57% 3,224,845 0
corporation
BNP Paribas Wealth
Overseas
Management Hong Kong 0.55% 3,099,873 0
corporation
Branch
Southwest Securities-
ICBC-Southwest Securities
Shuangxi Huixin ICBC No. Other 0.36% 2,000,000 0
2 Collected Asset
Management Plan
Domestic
Li Min 0.34% 1,918,950 0
individual
China Securities Finance
Other 0.33% 1,826,700 0
Corp.
Southwest Securities-
ICBC-Southwest Securities
Shuangxi Huixin ICBC No. Other 0.31% 1,750,000 0
1 Collected Asset
Management Plan
Bank of Communications
Co., Ltd.-Changxin Other 0.30% 1,661,600 0
Quantified Core Pioneer
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The Abstract of the 2015 Annual Report of Changchai Company, Limited
Mixed Investment Fund
Vanguard Total International Overseas
0.29% 1,626,592 0
Stock Index Fund corporation
It is unknown whether there was any associated relationship among
the top ten tradable shareholders and among the top ten
Related or acting-in-concert parties among
shareholders not subject to trading moratorium, or whether they are
shareholders above
persons acting in concert as described by Measures for the
Administrative of Disclosure of Shareholder Equity Changes.
Shareholder Huang Lihou held a total of 5,705,000 shares in the
Company, representing a stake of 1.02%, through a common
securities account and a client account of collateral securities for
margin trading. Conducting margin trading in the reporting period,
Shareholders conducting securities margin he held 5,600,000 shares (a stake of 1.00% in the Company)
trading (if any) through a client account of collateral securities for margin trading
in Guotai Junan Securities Co., Ltd. Shareholder Li Lin held
1,918,950 shares in the Company (a stake of 0.34%) through a
client account of collateral securities for margin trading in Guosen
Securities Co. , Ltd.
2. Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable √ Inapplicable
No preference shareholders in the reporting period
3. Relationship between the Company and its actual controller in the form of diagram
STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION
COMMISSION OF CHANGZHOU MUNICIPAL PEOPLE’S GOVERNMENT
CHANGCHAI COMPANY, LIMITED
V. Discussion and analysis by the management
1. Business review for the reporting period
In 2015, in face of multiple unfavorable factors such as the slowing-down macro-economy, a continuous decrease
in the gross output and sales volume in the diesel engine industry as well as the mounting pressure on production
safety and environmental protection, we carefully analyzed the market situation, beefed up the adjustment to our
product mix by various means, and seized opportunities in the domestic and overseas markets. We also kept
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The Abstract of the 2015 Annual Report of Changchai Company, Limited
improving our equipment capability, increased the quality of our employees, strictly controlled our product quality
and enhanced management. As a result, we were able to deliver a good business performance, which has further
solidified our position in the diesel engine industry.
In 2015, we sold 907,700 units of various engines and machine sets and achieved sales revenues of
RMB2,519,799,500, almost the same with last year, of which 776,300 units of single-cylinder engines were sold,
down 6.58% from last year; and 131,400 units of multi-cylinder engines were sold, up 5.04% from last year,
maintaining a good development momentum. We exported 95,800 units of various engines and machine sets by
ourselves, generating an income of USD36.48 million. We achieved net profits of RMB71,102,800 attributable to
the shareholders of the Company, up 10.75% on a year-on-year basis.
In terms of single-cylinder engines, the Company launched multiple new products to meet the emission
requirements and the market needs. It grasped the opportunity of product upgrade and de-stocking in the second
half year, and accelerated market sales. It also transferred work focus, made market layout to the targeted
direction, enhanced the sales force for big-bore single-cylinder engines, and firmed the market share.
Concerning multi-cylinder engines, the Company stepped up product innovation, benchmarking management and
lean production. Making full use of its competitive products such as the 4G33 in the non-road field, it
strengthened the promotion of its multi-cylinder engines for harvesters and wheel-tractors, and vigorously broke
into new fields such as plant-protect machines and engineering machines, resulting in a year-on-year increase of
non-road multi-cylinder engines. Meanwhile, a second assembly line for multi-cylinder engines was set up to
meet the assembly requirements of various products.
As for overseas sales, the Company was under severe pressure from the overseas market. The Company stuck to
relying on the support from factors as technology and brand, strengthened the maintenance and management for
key markets and key clients, locked the target markets and target client, try hard efforts to improve the sales of
advantaged traditional products, and accelerated the expansion of new markets.
As for market service, the Company laid emphasis on optimization and integration of web resources for market
service, planned diversified forms of training, continuously optimized management of market service, accessory
reserve, and accessory launch, met the demand from key clients and for key products in time, constantly improved
service satisfaction, and obtained obvious efforts in market service and management.
To sum up, in 2015, by stepping up product development and input to technical innovation, the Company
improved the overall competitiveness of its products and kept its leading position in medium and small
horsepower diesel engines. Meanwhile, the constantly low prices of raw and auxiliary materials contributed to the
result of saving internal costs and expenses, which ensured the sustainable and stable development of the
Company’s efficiency.
2. Significant changes in the main business in the reporting period
□ Yes √ No
3. Products contributing over 10% of the main business revenue or profit
√ Applicable □ Inapplicable
Unit: RMB Yuan
Operating Operating Gross profit
Gross profit
Product Operating revenue Operating profit revenue: YoY profit: YoY margin: YoY
margin
+/-% +/-% +/-%
Diesel
2,495,248,411.83 400,879,413.03 16.07% 1.36% 7.77% 0.95%
engines
4. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes √ No
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The Abstract of the 2015 Annual Report of Changchai Company, Limited
5. Significant YoY changes in the operating revenues, operating costs and net profits attributable to the
common shareholders or their composition
□ Applicable √ Inapplicable
6. Listing suspension or termination
□ Applicable √ Inapplicable
VI. Issues related to the financial report
1. YoY changes in the accounting policy, accounting estimation and measurement methods
□ Applicable √ Inapplicable
No changes.
2. Retrospective restatements due to correction of significant accounting errors in the reporting period
□ Applicable √ Inapplicable
No such cases.
3. YoY changes in the consolidation scope
□ Applicable √ Inapplicable
No changes.
4. Explanation by the Board of Directors and the Supervisory Committee concerning the “non-standard
auditor’s report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
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