Changchai Company, Limited Annual Report 2020 (Summary)
Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2021-011
CHANGCHAI COMPANY, LIMITED
ANNUAL REPORT 2020 (SUMMARY)
Part I Important Notes
This Summary is based on the full Annual Report of Changchai Company, Limited (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full
understanding of the Company’s operating results, financial position and future development plans, investors
should carefully read the aforesaid full text, which has been disclosed together with this Summary on the media
designated by the China Securities Regulatory Commission (the “CSRC”).
All the directors of the Company attended in person the board meeting for the approval of this Report except
for the following:
Reason for not attending the Proxy entrusted to
Name Office title
meeting in person attend the meeting
Xing Min Independent Director For reason of work Zhang Yan
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:
□ Applicable √ Not applicable
The Company has no final dividend plan, either in the form of cash or stock.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:
□ Applicable √ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.
Part II Key Corporate Information
1. Stock Profile
Changchai，
Stock name Stock code 000570, 200570
Changchai-B
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
1
Changchai Company, Limited Annual Report 2020 (Summary)
Name He Jianjiang
123 Huaide Middle Road,
Address
Changzhou, Jiangsu, China
Fax （86）519-86630954
Tel. （86）519-68683155
Email address cchjj@changchai.com
2. Principal Activities 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, rotovators, walking tractors, molds and 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.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Correction of accounting error.
Unit: RMB
2020-over-
2019 2019 2018
2020 change (%)
Before Restated Restated Before Restated
2,296,464, 2,040,133, 2,045,820, 2,132,902, 2,139,272,
Operating revenue 12.25%
711.24 717.30 801.10 718.60 523.92
Net profit attributable to
52,432,443 24,934,586 24,966,526 62,021,374 62,409,528
the listed company’s 110.01%
.05 .11 .85 .04 .46
shareholders
Net profit attributable to
the listed company’s
25,483,147 14,376,783 14,405,485 -43,333,19 -42,961,54
shareholders before 76.90%
.57 .21 .64 6.13 9.69
exceptional gains and
losses
Net cash generated
251,796,65 -20,542,85 -20,325,18 273,819,52 274,514,94
from/used in operating ——
4.53 7.52 9.56 6.89 5.73
activities
Basic earnings per share
0.0934 0.0444 0.0445 109.89% 0.1112 0.1112
(RMB/share)
2
Changchai Company, Limited Annual Report 2020 (Summary)
Diluted earnings per
0.0934 0.0444 0.0445 109.89% 0.1112 0.1112
share (RMB/share)
Weighted average return
2.40% 1.20% 1.21% 1.19% 2.84% 2.86%
on equity (%)
Change of
31
December
31 31 December 2019 2020 over 31 December 2018
December 31
2020 December
2019 (%)
Before Restated Restated Before Restated
3,952,954, 3,484,975, 3,488,820, 3,542,019, 3,546,079,
Total assets 13.30%
464.45 990.48 324.60 195.75 628.86
Equity attributable to the
2,273,349, 2,109,239, 2,110,892, 2,043,308, 2,044,929,
listed company’s 7.70%
347.02 597.94 767.58 026.74 255.64
shareholders
Reason for change in accounting policies and correction of accounting error:
The 4th Meeting of the 9th Board of Directors held on 29 July 2020 reviewed and approved the Proposal on
Correction of Accounting Errors in Previous Period. Changzhou Xingsheng Property Management Co., Ltd. that
was not included in the scope of consolidated statements before has been conducted accounting treatment according
to the provisions of the accounting standards during the Reporting Period. For further information, see the
Announcement No. 2020-043 on the Resolutions of the 4th Meeting of the 9th Board of Directors, the
Announcement No. 2020-045 on Correction of Accounting Errors in Previous Period and the Verification Report on
the Special Statement Regarding the Correction of Accounting Errors in the Period from 2017 to 2019, which can be
found on Securities Times, Ta Kung Pao and http://www.cninfo.com.cn.
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 537,033,349.19 630,422,433.11 584,404,482.93 544,604,446.01
Net profit attributable to the
listed company’s 1,510,305.60 26,180,005.46 11,263,467.62 13,478,664.37
shareholders
Net profit attributable to the
listed company’s
1,271,708.92 19,400,431.04 8,151,814.68 -3,340,807.07
shareholders before
exceptional gains and losses
Net cash generated
from/used in operating 19,241,295.96 -39,596,025.21 38,040,529.46 234,110,854.32
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs
materially from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
3
Changchai Company, Limited Annual Report 2020 (Summary)
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of
Number of Number of
preferred
ordinary preferred
Number of shareholders
shareholders shareholders
ordinary with resumed
at the with
shareholder 47,770 57,470 0 voting rights at 0
month-end resumed
s at the the month-end
prior to the voting rights
period-end prior to the
disclosure of at the
disclosure of
this Report period-end
this Report
Top 10 shareholders
Shareholdin Total shares Shares in pledge or
Nature of Restricted frozen
Name of shareholder g held at the
shareholder shares held
percentage period-end Status Shares
Changzhou
State-owned
Investment Group 30.43% 170,845,236
legal person
Co., Ltd
China Construction
Bank- First State
Cinda New Energy
Other 1.47% 8,233,132
Industry Stock Type
Securities
Investment Fund
KGI ASIA Foreign legal
0.57% 3,189,845
LIMITED person
Domestic
Chen Jian 0.49% 2,764,000
natural person
Domestic
Li Suinan 0.28% 1,548,100
natural person
Domestic
Huang Guoliang 0.27% 1,528,891
natural person
Domestic
Zeng Li 0.24% 1,360,000
natural person
Domestic
Chen Hengjun 0.23% 1,281,000
natural person
Domestic
Xue Hong 0.22% 1,240,000
natural person
Domestic
Hu Wenyong 0.22% 1,230,066
natural person
It is unknown whether there is among the top 10 public shareholders
Related or acting-in-concert parties and the top 10 unrestricted public shareholders any related parties or
among the shareholders above acting-in-concert parties as defined in the Administrative Measures for
Information Regarding Shareholding Alteration.
4
Changchai Company, Limited Annual Report 2020 (Summary)
Top 10 shareholders involved in Shareholder Chen Jian held 900,000 shares in the Company through a
securities margin trading (if any) margin account.
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding
before the date of this Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
In 2020, the outbreak of the COVID-19 pandemic caused decline in the international trade and turmoil in the
financial markets. The agricultural machinery industry and the internal combustion engine industry ushered in a
trend of contrarian growth in the continuous deep adjustment under the combined effect of various favorable factors
such as the comprehensive and effective national prevention and control measures, the proactive local policies for
supporting the resumption of work and production, China attaching great importance to food safety and
standardizing the implementation of subsidy policies for agricultural machinery purchases, and new infrastructure
construction promoting the rapid growth of the construction machinery market. The Company closely followed the
decisions and arrangements of the central, provincial and municipal governments, and coordinated the promotion of
pandemic prevention and control and corporate economic development. Under the premise of comprehensively
strengthening the implementation of pandemic prevention and control arrangements and normalizing pandemic
prevention and control, the Company correctly grasped the strategic development direction and insisted on
5
Changchai Company, Limited Annual Report 2020 (Summary)
strengthening the main business, expanding the areas and improving quality and efficiency, thus achieving good
operating results. Performance in economic indicators such as sales and profits have improved. During the
Reporting Period, the Company sold 759,500 units of diesel engines, gasoline engines and related generator sets,
including 132,200 units of gasoline engines, generating total sales revenue of RMB2,296,464,711.24, an increase of
12.25% year-on-year.
In terms of product development and supporting areas, the Company completed the development, promotion
and supporting work of major non-road multi-cylinder diesel engines of the China IV emission standards and a
variety of ultra-conventional varieties, which has built strong support for the annual sales. Four power ranges of
192FA and two power ranges of ZN390B have obtained Euro V emission certificates. Except for non-agricultural
sectors, products have significantly increased in marine, electromechanical and construction industries. The
Company continued to optimize its products and had sufficient new product reserves; it comprehensively expanded
supporting resources, and achieved significant increases in the field of benchmarking.
With regard to market service, the Company strengthened the after-market service business, built and
improved the after-market sales network; it optimized market service resources and personnel structure, and
enhanced the assessment management of service centers and service stations in the service process. Market service
capabilities and service timeliness have been improved. The Company reached a new high level of market service
satisfaction. The CRM project was integrated with the released applications within the Company, which made
customer management more standardized and consolidated the foundation for promoting the informationization of
the entire market.
Concerning quality management, the Company passed the ISO9001 and IATF16949 quality system
supervision and audit views during the Reporting Period, and passed the voluntary certification of 4L88 agricultural
machinery products by Nanjing Sam Certification T&D Co., Ltd. The Company further optimized the quality
assessment system to effectively improve product reliability.
As for internal management, the Company strengthened lean management to promote the improvement of
quality and efficiency; it further deepened the construction of internal control systems, strengthened the supervision
of key projects, and achieved obvious results in standardizing the management of subsidiaries. By accelerating the
mobilization of internal and external resources, the Company met market demand to the greatest extent and
improved its production and operation efficiency.
During the Reporting Period, construction of Changchai Machinery was in full swing and proceeded smoothly.
In mid-April, the Company launched a private placement project of 2020, and the plan was reviewed and approved
by the China Securities Regulation Commission.
2. Significant Change to Principal Activities in the Reporting Period
□ Yes √ No
6
Changchai Company, Limited Annual Report 2020 (Summary)
3. Product Category Contributing over 10% of Principal Business Revenue or Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in YoY change in
Product Gross profit
Operating revenue Operating profit operating operating profit gross profit
category margin
revenue (%) (%) margin (%)
Diesel
2,112,251,290.73 313,033,825.90 14.82% 13.80% 5.94% -1.10%
engines
Gasoline
132,735,777.75 24,465,587.09 18.43% -0.90% -3.14% -0.43%
engines
4. Business Seasonality that Calls for Special Attention
□ Yes √ No
5. Significant YoY Changes in Operating Revenue, Cost of Sales and Net Profit Attributable to the Listed
Company’s Ordinary Shareholders or Their Compositions
□ Applicable √ Not applicable
6. Possibility of Delisting
□ Applicable √ Not applicable
7. Matters Related to Financial Reporting
(1) YoY Changes to Accounting Policies, Accounting Estimates or Measurement Methods
√ Applicable □ Not applicable
Changes to the accounting policies and why Approval process Remark
The Ministry of Finance issued the Notice on Revising and On 28 April 2020, the
Issuing the Accounting Standards for Business Enterprises Company convened the 2nd
No.14-Revenue (CK [2017] No.22) (hereinafter referred to Meeting of the 9th Board of
as the “New Standards governing Revenue) in July 2017 Directors and the 2nd
and required all companies listed domestically to Meeting of the 9th
implement it since 1 January 2020. Supervisory Committee
and approved the Proposal
on Changes of Some
Accounting Policies.
(1) Influence of Implementing the New Standards governing Revenue
Affected items in the consolidated balance sheet and amount thereof:
Affected by classification and 1 January 2020
Item 31 December 2019
measurement
Advances from customers 31,789,001.78 -31,789,001.78
Contract liabilities 29,652,202.74 29,652,202.74
7
Changchai Company, Limited Annual Report 2020 (Summary)
Other current liabilities 1,177,712.38 2,136,799.04 3,314,511.42
Affected items in the balance sheet of the Company as the parent and amount thereof:
Affected by classification and 1 January 2020
Item 31 December 2019
measurement
Advances from customers 28,673,664.87 -28,673,664.87
Contract liabilities 26,661,229.33 26,661,229.33
Other current liabilities 2,012,435.54 2,012,435.54
(2) Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) YoY Changes to the Scope of Consolidated Financial Statements
□ Applicable √ Not applicable
No such cases.
8
