Changchai Company, Limited Third Quarter Report 2016
CHANGCHAI COMPANY, LIMITED
THIRD QUARTER REPORT 2016
October 2016
1
Changchai Company, Limited Third Quarter Report 2016
Section I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors
and senior management staff of Changchai Company, Limited (hereinafter
referred to as “the Company”) warrant that the information carried in this
report is factual, accurate and complete, without any false record, misleading
statement or material omission. And they shall be jointly and severally liable for
that.
All directors attended the board session for reviewing this report.
Shi Xinkun, company principal, Zhang Xin, chief of the accounting work,
and Jiang He, chief of the accounting organ (chief of accounting), hereby
confirm that the financial statements enclosed in this report are factual, accurate
and complete.
This Report is prepared in both Chinese and English. Should there be any
discrepancy between the two versions, the Chinese version shall prevail.
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Changchai Company, Limited Third Quarter Report 2016
Section II Financial Highlights & Shareholder Changes
I Highlights of accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year
due to change in accounting policies or correction of accounting errors
□ Yes √ No
30 September 2016 31 December 2015 +/- (%)
Total assets (RMB) 3,565,066,772.23 3,232,406,102.20 10.29%
Net assets attributable to
shareholders of the Company 2,275,011,627.15 2,002,910,311.01 13.59%
(RMB)
July-September January-September
YoY +/- (%) YoY +/- (%)
2016 2016
Operating revenues (RMB) 605,182,860.65 -25.77% 1,768,843,582.34 -18.68%
Net profit attributable to
shareholders of the Company 20,090,608.28 -44.48% 55,108,750.64 -25.27%
(RMB)
Net profit attributable to
shareholders of the Company
19,718,706.88 -44.53% 48,229,208.49 -32.32%
excluding exceptional profit
and loss (RMB)
Net cash flows from operating
-- -- 71,161,321.84 -25.60%
activities (RMB)
Basic earnings per share
0.04 -33.33% 0.10 -23.08%
(RMB/share)
Diluted earnings per share
0.04 -33.33% 0.10 -23.08%
(RMB/share)
Weighted average return on
0.95% -0.82% 2.58% -1.2%
equity
Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2016 Note
Gains/losses on the disposal of non-current assets (including the
6,119,622.06
offset part of the asset impairment provisions)
Government grants recognized in the current period, except for
7,224,482.97
those acquired in the ordinary course of business or granted at
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Changchai Company, Limited Third Quarter Report 2016
certain quotas or amounts according to the government’s unified
standards
Gains and losses on change in fair value from tradable financial
assets and tradable financial liabilities, as well as investment
income from disposal of tradable financial assets and tradable
1,237,244.73
financial liabilities and financial assets available for sales except
for effective hedging related with normal businesses of the
Company
Non-operating income and expense other than the above -6,147,404.55
Less: Income tax effects 1,367,290.18
Minority interests (after tax) 187,112.88
Total 6,879,542.15 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the
said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right
& shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of ordinary shareholders at the
55,425
end of the Reporting Period
Shareholdings of top 10 shareholders
Shareholdi Number of Pledged or frozen
Nature of Number of
Name of shareholder ng restricted shares shares
shareholder shares held
percentage held Status Number
State-owned Assets Supervision and
Administration Commission of On behalf of
30.43% 170,845,236
Changzhou Municipal People’s the State
Government
Bank of Communications Co.,
Ltd.-Changxin Quantified Core Other 1.03% 5,800,009
Pioneer Mixed Investment Fund
China Merchants Bank Company
Other 0.84% 4,699,919
Limited-Huitianfu Medical Service
4
Changchai Company, Limited Third Quarter Report 2016
Flexible Configuration Hybrid
Securities Investment Fund
Overseas
KGI ASIA LIMITED 0.59% 3,324,845
corporation
Mingsheng Tonghui Asset
Management-ICBC-Mingsheng
Other 0.58% 3,231,300
Tonghui No. 6 Juxin Asset
Management Product
BNP PARIBAS WEALTH
Overseas
MANAGEMENT HONG KONG 0.55% 3,099,873
corporation
BRANCH
Domestic
Huang Lihou 0.35% 1,949,700
individual
Domestic
Du Runsheng 0.31% 1,758,186
individual
VANGUARD TOTAL
Overseas
INTERNATIONAL STOCK 0.29% 1,626,592
corporation
INDEX FUND
Domestic
Li Min 0.29% 1,618,950
individual
Shareholdings of top 10 non-restricted shareholders
Number of non-restricted shares Type of shares
Name of shareholder
held at the period-end Type Number
State-owned Assets Supervision and
RMB ordinary
Administration Commission of Changzhou 170,845,236 170,845,236
share
Municipal People’s Government
Bank of Communications Co., Ltd.-Changxin
RMB ordinary
Quantified Core Pioneer Mixed Investment 5,800,009 5,800,009
share
Fund
China Merchants Bank Company
Limited-Huitianfu Medical Service Flexible RMB ordinary
4,699,919 4,699,919
Configuration Hybrid Securities Investment share
Fund
Domestically
KGI ASIA LIMITED 3,324,845 listed foreign 3,324,845
share
Mingsheng Tonghui Asset
RMB ordinary
Management-ICBC-Mingsheng Tonghui No. 6 3,231,300 3,231,300
share
Juxin Asset Management Product
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Changchai Company, Limited Third Quarter Report 2016
Domestically
BNP PARIBAS WEALTH MANAGEMENT
3,099,873 listed foreign 3,099,873
HONG KONG BRANCH
share
RMB ordinary
Huang Lihou 1,949,700 1,949,700
share
RMB ordinary
Du Runsheng 1,758,186 1,758,186
share
Domestically
VANGUARD TOTAL INTERNATIONAL
1,626,592 listed foreign 1,626,592
STOCK INDEX FUND
share
RMB ordinary
Li Min 1,618,950 1,618,950
share
It is unknown whether there was any associated relationship among
the top ten tradable shareholders and among the top ten shareholders
Related or act-in-concert parties among the
not subject to trading moratorium, or whether they are persons acting
shareholders above
in concert as described by Measures for the Administrative of
Disclosure of Shareholder Equity Changes.
The shareholder Huang Lihou held the shares of the Company of
1,949,700 shares through the securities guarantee account of the
customer credit transactions provided by Guotai Junan Securities Co.,
Ltd., with the proportion of the share holding of 0.35%; the
shareholder Du Runsheng held the shares of the Company of
Top 10 ordinary shareholders conducting 1,758,186 shares through the securities guarantee account of the
securities margin trading customer credit transactions provided by Everbright Securties Co.,
Ltd., with the proportion of the share holding of 0.31%; the
shareholder Li Min held the shares of the Company of 1,618,950
shares through the securities guarantee account of the customer credit
transactions provided by Guosen Securities Co., Ltd., with the share
holding of 0.29%.
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company
conduct any promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end
□ Applicable √ Not applicable
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Changchai Company, Limited Third Quarter Report 2016
Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting
Period, as well as reasons for the changes
√ Applicable □ Not applicable
(1) Notes receivable at the period-end decreased by RMB159.6052 million from the amount at the year-beginning,
a decrease of 32.02%, mainly because notes were adopted more often in settlement with customers before this
year to promote payment collection.
(2) Accounts receivable at the period-end increased by RMB377.4436 million from the amount at the
year-beginning, an increase of 122.31%, mainly because according to the characteristics in the production and
operation of the first nine months, credit sale was properly carried out to extend the market space; and the
proportion of multi-cylinder engines in the total sales increased, with most of the customers of multi-cylinder
engines being supporting manufacturers for bigger manufacturers, which means relatively long account ages for
the Company.
(3) Other accounts receivable at the period-end increased by RMB12.4013 million from the amount at the
year-beginning, an increase of 220.56%, mainly because of the temporary loans from the Company’s subsidiary
Changzhou Housheng Investment Co., Ltd. to Xuzhou East China Foundry General Factory, etc..
(4) Other current assets at the period-end decreased by RMB45.5696 million from the amount at the
year-beginning, a decrease of 75.57%, mainly because some bank wealth management products became due and
the overpaid VAT decreased.
(5) Available-for-sale financial assets at the period-end increased by RMB270.4755 million from the amount at the
year-beginning, an increase of 53.77%, mainly because the market value of the 38,000,000 shares held by the
Company in the Bank of Jiangsu increased as it went public in the period.
(6) Construction in progress at the period-end decreased by RMB39.3122 million from the amount at the
year-beginning, a decrease of 36.33%, mainly because some construction in progress turned into fixed assets.
(7) Short-term borrowings at the period-end decreased by RMB9.0000 million from the amount at the
year-beginning, a decrease of 52.94%, mainly because bank borrowings of controlled subsidiary Changchai
Wanzhou Diesel Engine Co., Ltd. decreased.
(8) Accounts received in advance at the period-end increased by RMB10.5532 million from the amount at the
year-beginning, an increase of 39.58%, mainly because advances from customers increased.
(9) Payroll payable at the period-end decreased by RMB29.6607 million from the amount at the year-beginning, a
decrease of 49.18%, mainly because the salaries and bonuses accrued before this year were partially paid in the
current period.
(10) Taxes and surtaxes payable at the period-end decreased by RMB5.9785 million from the amount at the
year-beginning, a decrease of 55.37%, mainly because some taxes and surtaxes for the current period were
provided for before this year.
(11) Return on investment in the current period decreased by RMB5.3965 million from the amount in the same
period of last year, a decrease of 60.71%, mainly because the Company received stock dividends from the Bank of
Jiangsu while there were no such events in the current period.
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Changchai Company, Limited Third Quarter Report 2016
II Progress on significant events, as well as the influence and solutions
□ Applicable √ Not applicable
III Commitments of the Company, its shareholders, actual controller, acquirer, directors,
supervisors, senior management or other related parties fulfilled in the Reporting Period or
ongoing at the period-end
√ Applicable □ Not applicable
Date of Term of
Commitment Type of
Commitment Contents commitment commitm Fulfillment
maker commitment
making ent
Commitments made in
share reform
Commitments made in
acquisition documents or
shareholding alteration
documents
Commitments made in time
of asset restructuring
Commitments made in time
of IPO or refinancing
Commitments concerning
stock ownership incentive
Under the
conditions of in
future three
years
(2014-2016)
the attributable
profit (the
Changchai remaining
Other commitments made Company, Bonus profits after the Y2014-20 In normal
2014-05-14
to minority shareholders Limited commitment losses have been 16 execution
made up and
common
reserves have
been drawn) of
shareholders’
reward plan in
the year or half
year is positive,
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Changchai Company, Limited Third Quarter Report 2016
and the cash
flow is
sufficient, the
cash dividends
had no influence
to the follow-up
continuously
operation, the
profit dividends
in cash shall no
lower than the
10% of
attributable
profit realized
by the Company
and in any three
continuous
accounting years
the
accumulative
profit dividends
in cash shall no
less than 30% of
the average
annual
attributable
profits realized
in three years.
Executed on time Yes
IV Performance forecast for Y2016
Warning of possible loss or considerable YoY change in the accumulative net profit made during the
year-beginning to the end of the next reporting period, as well as the reasons
□ Applicable √ Not applicable
V Securities investment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Changchai Company, Limited Third Quarter Report 2016
VI Investment in derivative financial instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits paid to the Company for purposes of research, communication, interview, etc.
during the Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
2016-09-28 Other Individual Number of shareholders
Whether the Company conduct
2016-09-28 Other Individual
recombination
2016-09-27 Other Individual Number of shareholders
2016-09-22 Other Individual Number of shareholders
2016-09-16 Other Individual Number of shareholders
2016-09-03 Other Individual Number of shareholders
Operation situation of the
2016-08-26 Other Individual
Company
2016-07-13 Other Individual Number of shareholders
Situation of the Company’s
2016-06-18 Other Individual
holding of stock of Jiangsu Bank
Stock increase/decrease plan of
2016-06-13 Other Individual
substantial shareholder
2016-06-06 Other Individual Number of shareholders
Future development plan of the
2016-05-25 Other Individual
Company
Whether the Company conduct
2016-05-25 Other Individual
recombination
2016-05-19 Other Individual Number of shareholders
2016-05-19 Other Individual Stock situation of the Company
Operation situation of the
2016-05-13 Other Individual
Company
2016-04-28 Other Individual Product situation of the Company
Agriculture informationize
2016-04-27 Other Individual
situation
2016-04-26 Other Individual Number of shareholders
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Changchai Company, Limited Third Quarter Report 2016
Operation situation of Changchai
2016-04-22 Other Individual
Benniu
Operation situation of the
2016-04-22 Other Individual
Company
Construction situation of industry
2016-04-22 Other Individual
park
The foreign cooperation of the
2016-04-22 Other Individual
Company
Operation situation of Housheng
2016-04-22 Other Individual
Investment
2016-04-22 Other Individual Future plan of the Company
Direction of the future technology
2016-04-21 Other Individual
product development
2016-04-05 Other Individual R&D situation of the Company
2016-03-31 Other Individual Future plan of the Company
Situation of the Company’s
2016-03-28 Other Individual
participant in refinancing business
Situation of the Company’s
2016-03-28 Other Individual
participant in refinancing business
2016-03-15 Other Individual Stock situation of the Company
2016-03-10 Other Individual Number of shareholders
Operation situation of the
2016-03-01 Other Individual
Company
Situation of the Company’s
2016-02-23 Other Individual participation in Qinghua Xingye
Company
2016-02-23 Other Individual Number of shareholders
Operation situation of Housheng
2016-02-22 Other Individual
Agricultural Equipment
Progress situation of SOE reform
2016-02-01 Other Individual
of the Company
The export business situation of
2016-01-20 Other Individual
the Company
2016-01-11 Other Individual Stock situation of the Company
2016-01-08 Other Individual R&D situation of the Company
2016-01-07 Other Individual Stock situation of the Company
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Changchai Company, Limited Third Quarter Report 2016
2016-01-06 Other Individual Stock situation of the Company
Suggestion for future development
2016-01-06 Other Individual
plan of the Company
Operation situation of jobbing
2016-01-06 Other Individual
foundry
2016-01-06 Other Individual Stock situation of the Company
2016-01-05 Other Individual Stock situation of the Company
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Changchai Company, Limited Third Quarter Report 2016
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Changchai Company, Limited
30 September 2016
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 612,141,492.07 601,312,715.62
Settlement reserve
Interbank lendings
Financial assets at fair value through profit/loss
Derivative financial assets
Notes receivable 338,897,034.31 498,502,274.42
Accounts receivable 686,040,501.34 308,596,920.50
Accounts paid in advance 16,062,589.85 12,882,271.70
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable
Dividends receivable
Other accounts receivable 18,023,804.22 5,622,539.81
Financial assets purchased under agreements to resell
Inventories 287,461,325.80 397,290,012.36
Assets held for sale
Non-current assets due within one year
Other current assets 14,735,091.31 60,304,691.41
Total current assets 1,973,361,838.90 1,884,511,425.82
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 773,455,500.00 502,980,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 20,350,741.68 20,769,304.76
Investment property 55,624,774.43 57,281,030.03
Fixed assets 571,219,463.47 554,601,893.23
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Changchai Company, Limited Third Quarter Report 2016
Construction in progress 68,886,297.06 108,198,455.01
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 101,205,625.81 103,101,462.47
R&D expenses
Goodwill
Long-term deferred expenses
Deferred tax assets 962,530.88 962,530.88
Other non-current assets
Total non-current assets 1,591,704,933.33 1,347,894,676.38
Total assets 3,565,066,772.23 3,232,406,102.20
Current liabilities:
Short-term borrowings 8,000,000.00 17,000,000.00
Borrowings from the Central Bank
Money deposits accepted and inter-bank deposits
Interbank borrowings
Financial liabilities at fair value through profit/loss
Derivative financial liabilities
Notes payable 275,009,300.00 238,200,000.00
Accounts payable 504,547,680.08 535,978,470.07
Accounts received in advance 37,218,909.31 26,665,671.38
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 30,648,690.19 60,309,349.29
Taxes and surtaxes payable 4,819,591.91 10,798,062.93
Interest payable
Dividends payable 3,891,433.83 3,891,433.83
Other accounts payable 249,954,732.71 201,151,632.46
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 2,575,137.38 2,403,287.06
Total current liabilities 1,116,665,475.41 1,096,397,907.02
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
14
Changchai Company, Limited Third Quarter Report 2016
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Special payables
Provisions
Deferred income 52,323,325.48 53,121,605.70
Deferred tax liabilities 102,957,150.00 62,385,825.00
Other non-current liabilities
Total non-current liabilities 155,280,475.48 115,507,430.70
Total liabilities 1,271,945,950.89 1,211,905,337.72
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 164,328,665.43 164,328,665.43
Less: Treasury shares
Other comprehensive income 583,423,850.00 353,519,675.00
Special reserve 10,069,746.98 10,069,746.98
Surplus reserve 305,758,285.91 305,758,285.91
Provisions for general risks
Retained earnings 650,056,752.83 607,859,611.69
Equity attributable to owners of the Company 2,275,011,627.15 2,002,910,311.01
Minority interests 18,109,194.19 17,590,453.47
Total owners’ equity 2,293,120,821.34 2,020,500,764.48
Total liabilities and owners’ equity 3,565,066,772.23 3,232,406,102.20
Legal representative: Shi Xinkun Chief of the accounting work: Zhang Xin
Chief of the accounting organ: Jiang He
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Changchai Company, Limited Third Quarter Report 2016
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 592,194,853.38 572,530,396.20
Financial assets at fair value through profit/loss
Derivative financial assets
Notes receivable 338,647,034.31 490,777,874.42
Accounts receivable 651,880,603.25 263,878,166.23
Accounts paid in advance 6,423,567.92 6,512,574.55
Interest receivable
Dividends receivable
Other accounts receivable 9,270,495.56 4,885,363.01
Inventories 234,583,482.12 348,179,430.41
Assets held for sale
Non-current assets due within one year
Other current assets 41,403,182.61
Total current assets 1,833,000,036.54 1,728,166,987.43
Non-current assets:
Available-for-sale financial assets 766,255,500.00 495,780,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 204,817,241.68 205,235,804.76
Investment property 55,624,774.43 57,281,030.03
Fixed assets 466,619,768.84 445,343,167.61
Construction in progress 68,886,297.06 108,198,455.01
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 79,702,854.21 81,159,855.82
R&D expenses
Goodwill
Long-term deferred expenses
Deferred tax assets 962,530.88 962,530.88
Other non-current assets
Total non-current assets 1,642,868,967.10 1,393,960,844.11
Total assets 3,475,869,003.64 3,122,127,831.54
Current liabilities:
Short-term borrowings
16
Changchai Company, Limited Third Quarter Report 2016
Financial liabilities at fair value through profit/loss
Derivative financial liabilities
Notes payable 251,059,300.00 218,200,000.00
Accounts payable 494,789,853.32 527,416,373.82
Accounts received in advance 59,743,226.27 24,537,940.90
Payroll payable 25,359,358.30 55,068,743.12
Taxes and surtaxes payable 2,308,450.47 8,521,233.87
Interest payable
Dividends payable 3,243,179.97 3,243,179.97
Other accounts payable 239,166,601.87 194,650,090.70
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,075,669,970.20 1,031,637,562.38
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions
Deferred income 52,323,325.48 53,121,605.70
Deferred tax liabilities 102,957,150.00 62,385,825.00
Other non-current liabilities
Total non-current liabilities 155,280,475.48 115,507,430.70
Total liabilities 1,230,950,445.68 1,147,144,993.08
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 183,071,147.70 183,071,147.70
Less: Treasury shares
Other comprehensive income 583,423,850.00 353,519,675.00
Special reserve 10,069,746.98 10,069,746.98
Surplus reserve 305,758,285.91 305,758,285.91
Retained earnings 601,221,201.37 561,189,656.87
Total owners’ equity 2,244,918,557.96 1,974,982,838.46
Total liabilities and owners’ equity 3,475,869,003.64 3,122,127,831.54
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Changchai Company, Limited Third Quarter Report 2016
3. Consolidated income statement for the Reporting Period
Unit: RMB
Item July-September 2016 July-September 2015
1. Operating revenues 605,182,860.65 815,273,308.97
Including: Sales income 605,182,860.65 815,273,308.97
Interest income
Premium income
Fee and commission income
2. Operating costs 582,629,416.88 774,219,303.45
Including: Cost of sales 508,400,386.36 693,638,845.88
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Business tax and surtaxes 1,478,280.66 563,797.34
Selling expenses 26,870,375.76 30,732,717.78
Administrative expenses 42,789,316.00 40,783,750.57
Finance costs -2,058,233.97 -5,054,282.87
Asset impairment loss 5,149,292.07 13,554,474.75
Add: Profit on fair value changes (“-” means loss)
Return on investment (“-” means loss) 1,590,796.01 3,987,809.68
Including: Share of profit/loss of associates and joint
ventures
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) 24,144,239.78 45,041,815.20
Add: Non-operating revenue 3,378,070.25 3,706,277.10
Including: Profit on disposal of non-current assets 6,504.85
Less: Non-operating expense 2,636,463.10 3,411,848.65
Including: Loss on disposal of non-current assets 147,330.43
4. Total profit (“-” means loss) 24,885,846.93 45,336,243.65
Less: Corporate income tax 4,661,917.24 8,577,332.74
5. Net profit (“-” means loss) 20,223,929.69 36,758,910.91
Net profit attributable to owners of the Company 20,090,608.28 36,184,587.95
Minority interests’ income 133,321.41 574,322.96
6. Other comprehensive income net of tax 320,237,050.00 -192,578,275.00
Other comprehensive income net of tax attributable to
320,237,050.00 -192,578,275.00
owners of the Company
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Changchai Company, Limited Third Quarter Report 2016
6.1 Other comprehensive income that will not be
reclassified into profit/loss
6.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of
investees that cannot be reclassified into profit/loss under the
equity method
6.2 Other comprehensive income to be subsequently
320,237,050.00 -192,578,275.00
reclassified into profit/loss
6.2.1 Share of other comprehensive income of
investees that will be reclassified into profit/loss under the
equity method
6.2.2 Profit/loss on fair value changes of
320,237,050.00 -192,578,275.00
available-for-sale financial assets
6.2.3 Profit/loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective profit/loss on cash flow hedges
6.2.5 Currency translation differences
6.2.6 Other
Other comprehensive income net of tax attributable to
minority interests
7. Total comprehensive income 340,460,979.69 -155,819,364.09
Attributable to owners of the Company 340,327,658.28 -156,393,687.05
Attributable to minority interests 133,321.41 574,322.96
8. Earnings per share
8.1 Basic earnings per share 0.04 0.06
8.2 Diluted earnings per share 0.04 0.06
Legal representative: Shi Xinkun Chief of the accounting work: Zhang Xin
Chief of the accounting organ: Jiang He
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Changchai Company, Limited Third Quarter Report 2016
4. Income statement of the Company for the Reporting Period
Unit: RMB
Item July-September 2016 July-September 2015
1. Operating revenues 599,271,501.38 817,184,146.88
Less: Operating costs 508,435,908.29 705,546,162.78
Business tax and surtaxes 1,285,307.03 366,089.65
Selling expenses 24,541,083.94 25,077,177.08
Administrative expenses 39,285,195.41 37,405,232.36
Finance costs -2,178,342.93 -5,340,820.47
Asset impairment loss 5,073,416.96 13,554,474.75
Add: profit on fair value changes (“-” means loss)
Return on investment (“-” means loss) 1,433,422.80 3,501,904.83
Including: Share of profit/loss of associates and joint
ventures
2. Operating profit (“-” means loss) 24,262,355.48 44,077,735.56
Add: Non-operating revenue 3,245,542.27 3,499,082.46
Including: Profit on disposal of non-current assets 6,504.85
Less: Non-operating expense 2,636,463.10 3,362,572.28
Including: Loss on disposal of non-current assets 147,330.43
3. Total profit (“-” means loss) 24,871,434.65 44,214,245.74
Less: Corporate income tax 4,537,787.81 8,206,775.79
4. Net profit (“-” means loss) 20,333,646.84 36,007,469.95
5. Other comprehensive income net of tax 320,237,050.00 -192,578,275.00
5.1 Other comprehensive income that will not be
reclassified into profit and loss
5.1.1 Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
5.1.2 Share of other comprehensive income of investees
that cannot be reclassified into profit/loss under the equity
method
5.2 Other comprehensive income to be subsequently
320,237,050.00 -192,578,275.00
reclassified into profit/loss
5.2.1 Share of other comprehensive income of investees
that will be reclassified into profit/loss under the equity
method
5.2.2 Profit/loss on fair value changes of
320,237,050.00 -192,578,275.00
available-for-sale financial assets
5.2.3 Profit/loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
5.2.4 Effective profit/loss on cash flow hedges
5.2.5 Currency translation differences
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Changchai Company, Limited Third Quarter Report 2016
5.2.6 Other
6. Total comprehensive income 340,570,696.84 -156,570,805.05
7. Earnings per share
7.1 Basic earnings per share 0.04 0.06
7.2 Diluted earnings per share 0.04 0.06
5. Consolidated income statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
January-September
Item January-September 2015
2016
1. Operating revenues 1,768,843,582.34 2,175,169,209.66
Including: Sales income 1,768,843,582.34 2,175,169,209.66
Interest income
Premium income
Fee and commission income
2. Operating costs 1,712,694,317.75 2,094,126,375.43
Including: Cost of sales 1,492,994,650.79 1,872,711,948.61
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Business tax and surtaxes 3,495,808.07 2,843,809.77
Selling expenses 86,388,850.36 88,791,816.70
Administrative expenses 121,277,931.70 125,184,774.75
Finance costs -6,869,369.26 -11,727,986.61
Asset impairment loss 15,406,446.09 16,322,012.21
Add: Profit on fair value changes (“-” means loss) 0.00
Return on investment (“-” means loss) 3,491,931.65 8,888,413.12
Including: Share of profit/loss of associates and joint
ventures
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) 59,641,196.24 89,931,247.35
Add: Non-operating revenue 14,014,264.30 7,370,389.00
Including: Profit on disposal of non-current assets 6,119,622.06 106,674.56
Less: Non-operating expense 6,784,303.82 6,244,506.81
Including: Loss on disposal of non-current assets 179,739.42 14,758.29
4. Total profit (“-” means loss) 66,871,156.72 91,057,129.54
21
Changchai Company, Limited Third Quarter Report 2016
Less: Corporate income tax 11,243,665.36 16,080,776.07
5. Net profit (“-” means loss) 55,627,491.36 74,976,353.47
Net profit attributable to owners of the Company 55,108,750.64 73,747,987.13
Minority interests’ income 518,740.72 1,228,366.34
6. Other comprehensive income net of tax 270,475,500.00 -34,647,000.00
Other comprehensive income net of tax attributable to
270,475,500.00 -34,647,000.00
owners of the Company
6.1 Other comprehensive income that will not be
reclassified into profit/loss
6.1.1 Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of
investees that cannot be reclassified into profit/loss under the
equity method
6.2 Other comprehensive income to be subsequently
270,475,500.00 -34,647,000.00
reclassified into profit/loss
6.2.1 Share of other comprehensive income of
investees that will be reclassified into profit/loss under the
equity method
6.2.2 Profit/loss on fair value changes of
270,475,500.00 -34,647,000.00
available-for-sale financial assets
6.2.3 Profit/loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective profit/loss on cash flow hedges
6.2.5 Currency translation differences
6.2.6 Other
Other comprehensive income net of tax attributable to
minority interests
7. Total comprehensive income 326,102,991.36 40,329,353.47
Attributable to owners of the Company 325,584,250.64 39,100,987.13
Attributable to minority interests 518,740.72 1,228,366.34
8. Earnings per share
8.1 Basic earnings per share 0.10 0.13
8.2 Diluted earnings per share 0.10 0.13
22
Changchai Company, Limited Third Quarter Report 2016
6. Income statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
January-September
Item January-September 2015
2016
1. Operating revenues 1,762,967,830.04 2,188,415,911.23
Less: Operating costs 1,508,621,223.35 1,905,887,198.60
Business tax and surtaxes 2,948,488.79 2,458,335.46
Selling expenses 79,839,342.39 80,828,891.79
Administrative expenses 109,216,619.09 114,270,739.10
Finance costs -7,536,817.79 -12,780,416.48
Asset impairment loss 15,182,514.35 16,322,012.21
Add: profit on fair value changes (“-” means loss)
Return on investment (“-” means loss) 2,618,686.92 7,011,777.30
Including: Share of profit/loss of associates and joint
ventures
2. Operating profit (“-” means loss) 57,315,146.78 88,440,927.85
Add: Non-operating revenue 13,149,831.83 6,551,363.13
Including: Profit on disposal of non-current assets 6,119,622.06 106,674.56
Less: Non-operating expense 6,684,303.82 6,162,644.65
Including: Loss on disposal of non-current assets 179,739.42 14,758.29
3. Total profit (“-” means loss) 63,780,674.79 88,829,646.33
Less: Corporate income tax 10,837,520.79 15,254,623.61
4. Net profit (“-” means loss) 52,943,154.00 73,575,022.72
5. Other comprehensive income net of tax 270,475,500.00 -34,647,000.00
5.1 Other comprehensive income that will not be
reclassified into profit and loss
5.1.1 Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
5.1.2 Share of other comprehensive income of investees
that cannot be reclassified into profit/loss under the equity
method
5.2 Other comprehensive income to be subsequently
270,475,500.00 -34,647,000.00
reclassified into profit/loss
5.2.1 Share of other comprehensive income of investees
that will be reclassified into profit/loss under the equity
method
5.2.2 Profit/loss on fair value changes of
270,475,500.00 -34,647,000.00
available-for-sale financial assets
5.2.3 Profit/loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
23
Changchai Company, Limited Third Quarter Report 2016
5.2.4 Effective profit/loss on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 323,418,654.00 38,928,022.72
7. Earnings per share
7.1 Basic earnings per share 0.10 0.13
7.2 Diluted earnings per share 0.10 0.13
7. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
January-September
Item January-September 2015
2016
1. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
1,878,758,216.61 1,984,543,237.07
service
Net increase in money deposits from customers and
interbank placements
Net increase in loans from the Central Bank
Net increase in funds borrowed from other financial
institutions
Cash received from premium of original insurance
contracts
Net cash received from reinsurance business
Net increase in deposits of policy holders and investment
fund
Net increase in disposal of financial assets at fair value
through profit/loss
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax refunds received 25,451,713.41 17,902,474.19
Cash received from other operating activities 13,809,723.65 12,526,725.39
Subtotal of cash inflows from operating activities 1,918,019,653.67 2,014,972,436.65
Cash paid for goods and services 1,484,652,767.18 1,573,265,648.42
Net increase in loans and advances to customers
Net increase in funds deposited in the Central Bank and
interbank placements
Cash paid for claims of original insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
24
Changchai Company, Limited Third Quarter Report 2016
Cash paid to and for employees 245,376,567.76 228,131,676.49
Taxes and surtaxes paid 58,392,898.88 59,653,475.56
Cash paid for other operating activities 58,436,098.01 58,277,552.71
Subtotal of cash outflows from operating activities 1,846,858,331.83 1,919,328,353.18
Net cash flows from operating activities 71,161,321.84 95,644,083.47
2. Cash flows from investing activities:
Cash received from retraction of investments 38,000,000.00 2,109,642.19
Cash received as return on investments 3,654,493.73 7,782,737.77
Net cash received from disposal of fixed assets, intangible
29,140.00 283,604.57
assets and other long-term assets
Net cash received from disposal of subsidiaries or other
0.00
business units
Cash received from other investing activities 0.00
Subtotal of cash inflows from investing activities 41,683,633.73 10,175,984.53
Cash paid to acquire fixed assets, intangible assets and
56,932,317.04 46,939,756.27
other long-term assets
Cash paid for investment 20,000,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business
0.00
units
Cash paid for other investing activities 26,000,000.00 23,000,000.00
Subtotal of cash outflows from investing activities 82,932,317.04 89,939,756.27
Net cash flows from investing activities -41,248,683.31 -79,763,771.74
3. Cash flows from financing activities:
Cash received from capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received as borrowings 8,000,000.00 12,000,000.00
Cash received from issuance of bonds
Cash received from other financing activities 4,046.87
Subtotal of cash inflows from financing activities 8,000,000.00 12,004,046.87
Repayment of borrowings 17,000,000.00 20,000,000.00
Cash paid for interest expenses and distribution of
13,454,068.45 12,344,836.73
dividends or profit
Including: dividends or profit paid by subsidiaries to
minority interests
Cash paid for other financing activities
Sub-total of cash outflows from financing activities 30,454,068.45 32,344,836.73
Net cash flows from financing activities -22,454,068.45 -20,340,789.86
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents 7,458,570.08 -4,460,478.13
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Changchai Company, Limited Third Quarter Report 2016
Add: Opening balance of cash and cash equivalents 526,716,238.21 464,761,820.50
6. Closing balance of cash and cash equivalents 534,174,808.29 460,301,342.37
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Changchai Company, Limited Third Quarter Report 2016
8. Cash flow statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB
January-September
Item January-September 2016
2015
1. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
1,741,441,987.77 2,000,329,758.45
service
Tax refunds received 25,451,713.41 17,902,474.19
Cash received from other operating activities 11,815,279.64 10,273,377.45
Subtotal of cash inflows from operating activities 1,778,708,980.82 2,028,505,610.09
Cash paid for goods and services 1,394,962,034.09 1,621,637,795.69
Cash paid to and for employees 220,651,723.97 204,419,916.17
Taxes and surtaxes paid 51,852,861.28 55,166,479.12
Cash paid for other operating activities 54,891,634.27 55,229,062.40
Subtotal of cash outflows from operating activities 1,722,358,253.61 1,936,453,253.38
Net cash flows from operating activities 56,350,727.21 92,052,356.71
2. Cash flows from investing activities:
Cash received from retraction of investments 20,000,000.00
Cash received as return on investments 3,037,250.00 6,740,101.95
Net cash received from disposal of fixed assets, intangible
29,140.00 106,674.57
assets and other long-term assets
Net cash received from disposal of subsidiaries or other
business units
Cash received from other investing activities
Subtotal of cash inflows from investing activities 23,066,390.00 6,846,776.52
Cash paid to acquire fixed assets, intangible assets and
54,711,256.90 44,666,156.27
other long-term assets
Cash paid for investment 20,000,000.00
Net cash paid to acquire subsidiaries and other business
units
Cash paid for other investing activities
Subtotal of cash outflows from investing activities 54,711,256.90 64,666,156.27
Net cash flows from investing activities -31,644,866.90 -57,819,379.75
3. Cash flows from financing activities:
Cash received from capital contributions
Cash received as borrowings
Cash received from issuance of bonds
27
Changchai Company, Limited Third Quarter Report 2016
Cash received from other financing activities
Subtotal of cash inflows from financing activities
Repayment of borrowings
Cash paid for interest expenses and distribution of
12,911,609.50 11,227,486.52
dividends or profit
Cash paid for other financing activities 0.00
Sub-total of cash outflows from financing activities 12,911,609.50 11,227,486.52
Net cash flows from financing activities -12,911,609.50 -11,227,486.52
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents 11,794,250.81 23,005,490.44
Add: Opening balance of cash and cash equivalents 503,933,918.79 430,758,675.98
6. Closing balance of cash and cash equivalents 515,728,169.60 453,764,166.42
II Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
28
