Changchai Company, Limited First Quarterly Report 2021
CHANGCHAI COMPANY, LIMITED
FIRST QUARTERLY REPORT 2021
28 April 2021
1
Changchai Company, Limited First Quarterly Report 2021
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the
directors, supervisors and senior management of Changchai Company, Limited (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this
Report and its summary.
Shi Xinkun, the Company’s legal representative, Zhang Xin, the Company’s General
Manager, and Jiang He, head of the Company’s financial department (equivalent to financial
manager) hereby guarantee that the Financial Statements carried in this Report are factual,
accurate and complete.
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.
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Changchai Company, Limited First Quarterly Report 2021
Part II Key Corporate Information
I Key Financial Information
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
Q1 2020 Change (%)
Q1 2021
Before After After
Operating revenue (RMB) 774,218,489.69 537,033,349.19 538,139,070.21 43.87%
Net profit attributable to the listed
24,571,254.83 1,510,305.60 1,404,292.62 1,649.72%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 23,604,960.00 1,271,708.92 1,140,714.02 1,969.31%
exceptional items (RMB)
Net cash generated from/used in
-184,484,392.45 19,241,295.96 18,989,933.66 ——
operating activities (RMB)
Basic earnings per share
0.0438 0.0027 0.0025 1,652.00%
(RMB/share)
Diluted earnings per share
0.0438 0.0027 0.0025 1,652.00%
(RMB/share)
Weighted average return on
1.07% 0.07% 0.07% 1.00%
equity (%)
31 December 2020 Change (%)
31 March 2021
Before After After
Total assets (RMB) 4,133,968,635.47 3,952,954,464.45 3,952,954,464.45 4.58%
Equity attributable to the listed
2,426,095,501.85 2,273,349,347.02 2,273,349,347.02 6.72%
company’s shareholders (RMB)
Reason for change in accounting policy and particulars about correction of accounting error:
The Proposal on Correction of Previous Accounting Error was reviewed and approved on the 4th Meeting of
the 9th Board of Directors held on 29 July 2020, and Changzhou Xingsheng Property Management Co., Ltd. which
was not included in the scope of consolidated balance sheet before has been carried out accounting treatment in
accordance to the stipulations of accounting standards. For details, see the Announcement on the Resolutions of
the 4th Meeting of the 9th Board of Directors (Announcement No.:2020-043), the Announcement on Correction of
Previous Accounting Error (Announcement No.:2020-045), and the Authentication Report of Special Instruction
regarding Correction of Accounting Error from 2017 to 2019 disclosed on Securities Times, Ta Kung Pao and
http://www.cninfo.com.cn.
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Changchai Company, Limited First Quarterly Report 2021
1. Effects to the consolidated balance sheet of the same period in 2020
1 January 2020 – 31 March 2020
Effected items
Before After
Income statement:
1. Revenues 537,033,349.19 538,139,070.21
Operating revenue 537,033,349.19 538,139,070.21
2. Costs and expenses 529,922,440.47 531,160,471.23
Cost of sales 468,398,298.69 468,694,592.90
Taxes and levies 3,081,606.93 3,081,767.05
Selling expense 27,529,136.09 27,568,943.45
Administrative expense 16,267,262.68 17,172,240.77
Finance costs -823,896.76 -827,105.78
Other income 805,876.00 805,876.00
Investment income 24,734.34 51,031.10
3. Operating profit 2,763,109.02 2,657,096.04
Non-operating expense 368,721.44 368,721.44
4. Gross profit 2,525,534.32 2,419,521.34
Income tax expense 1,008,368.05 1,008,368.05
5. Net profit 1,517,166.27 1,411,153.29
By operating continuity 1,517,166.27 1,411,153.29
Net profit attributable to owners of the Company as the parent 1,510,305.60 1,404,292.62
6. Total comprehensive income -39,469,833.73 -39,575,846.71
Attributable to owners of the Company as the parent -39,476,694.40 -39,582,707.38
7. Earnings per share
7.1 Basic earnings per share 0.0027 0.0025
7.2 Diluted earnings per share 0.0027 0.0025
Cash Flow Statement:
1. Cash flows from operating activities
Proceeds from sale of commodities and rendering of services 394,536,274.90 395,541,506.92
Cash generated from other operating activities 3,065,965.22 3,091,386.85
Subtotal of cash generated from operating activities 405,942,727.11 406,973,380.76
Payments for commodities and services 281,322,512.13 282,175,437.06
Cash paid to and for employees 76,966,977.12 77,363,224.39
Taxes and levies paid 7,741,624.22 7,741,784.34
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Changchai Company, Limited First Quarterly Report 2021
Cash used in other operating activities 20,670,317.68 20,703,001.31
Subtotal of cash used in operating activities 386,701,431.15 387,983,447.10
Net cash generated from/used in operating activities 19,241,295.96 18,989,933.66
2. Cash flows from investing activities:
Proceeds from disinvestment 1,500,000.00 4,550,000.00
Return on investment 1,778.18 28,074.94
Subtotal of cash generated from investing activities 1,548,278.18 4,624,574.94
Payments for investments 3,000,000.00 6,100,000.00
Cash used in other investing activities 930,300.00 930,300.00
Subtotal of cash used in investing activities 29,054,394.04 32,154,394.04
Net cash generated from/used in investing activities -27,506,115.86 -27,529,819.10
5. Net increase in cash and cash equivalents -8,537,210.92 -8,812,276.46
6. Cash and cash equivalents, end of the period 536,047,533.25 535,772,467.71
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2021 Note
Gain/Loss arising from disposal of non-current assets (inclusive
6,800.10
of impairment allowance write-offs)
Government subsidies recognized in the current period, except for
those acquired in the ordinary course of business or granted at
299,348.30
certain quotas or amounts according to the government’s unified
standards
Gain/Loss on changes in fair value arising from holding of
held-for-trading financial assets and liabilities, derivative
financial assets and liabilities and investment income from
disposal of held-for-trading financial assets and liabilities, 851,116.06
derivative financial assets and liabilities and other debt
investments other than effective hedge business related to the
Company’s normal operating businesses
Other non-operating income and expense other than the above 56,844.59
Less: Income tax effects 247,814.22
Non-controlling interests effects (after tax) 0.00
Total 966,294.83 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
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Changchai Company, Limited First Quarterly Report 2021
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2021
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders with resumed
57,470 0
shareholders at the period-end voting rights at the period-end
(if any)
Top 10 shareholders
Shareh Shares in pledge or
Nature of olding Total shares Restricted frozen
Name of shareholder
shareholder percent held shares held Share
Status
age s
Changzhou Investment State-owned
30.43% 170,845,236
Group Co., Ltd legal person
Foreign
KGI ASIA LIMITED 0.56% 3,151,695
corporation
Domestic
Li Suinan 0.28% 1,548,100
individual
Domestic
Huang Guoliang 0.27% 1,528,891
individual
China Construction Bank
Corporation- First State
Cinda New Energy Other 0.25% 1,418,947
Industry Stock Securities
Investment Fund
Domestic
Chen Jian 0.22% 1,249,000
individual
Domestic
Chen Xiaojing 0.22% 1,239,100
individual
Domestic
Hu Wenyong 0.22% 1,230,011
individual
Domestic
Tao Xiaofang 0.22% 1,218,400
individual
Xue Hong Domestic 0.21% 1,160,000
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Changchai Company, Limited First Quarterly Report 2021
individual
Top 10 unrestricted shareholders
Unrestricted Shares by type
Name of shareholder
shares held Type Shares
RMB-denominate
Changzhou Investment Group Co., Ltd 170,845,236 170,845,236
d ordinary stock
Domestically
KGI ASIA LIMITED 3,151,695 listed foreign 3,151,695
stock
Overseas listed
Li Suinan 1,548,100 1,548,100
foreign stock
Overseas listed
Huang Guoliang 1,528,891 1,528,891
foreign stock
China Construction Bank Corporation- First State
RMB-denominate
Cinda New Energy Industry Stock Securities 1,418,947 1,418,947
d ordinary stock
Investment Fund
RMB-denominate
Chen Jian 1,249,000 1,249,000
d ordinary stock
RMB-denominate
Chen Xiaojing 1,239,100 1,239,100
d ordinary stock
Domestically
Hu Wenyong 1,230,011 listed foreign 1,230,011
stock
RMB-denominate
Tao Xiaofang 1,218,400 1,218,400
d ordinary stock
Domestically
Xue Hong 1,160,000 listed foreign 1,160,000
stock
It is unknown whether there is among the top 10 public shareholders and the
Related or acting-in-concert
top 10 unrestricted public shareholders any related parties or
parties among the shareholders
acting-in-concert parties as defined in the Administrative Measures for
above
Information Regarding Shareholding Alteration.
Top 10 shareholders involved
The shareholders Chen Jian and Chen Xiaojing respectively hold 50,000
in securities margin trading (if
shares and 1,211,800 shares of the Company through their credit account.
any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
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Changchai Company, Limited First Quarterly Report 2021
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
8
Changchai Company, Limited First Quarterly Report 2021
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Accounts receivable increased by RMB381,338,419.54, or 96.02%, as at 31 March 2021 compared to 31
December 2020, primarily because the Company properly allowed customers’ buying on credit for more markets
in the current quarter and multi-cylinder diesel engine customers are mainly supporting companies of main
engine , which are usually given longer payment days.
2. Other current assets decreased by RMB8,672,474.35, or 31.77%, as at 31 March 2021 compared to 31
December 2020, primarily because excess VAT paid of the Company decreased.
3. Construction in progress increased by RMB56,104,226.82, or 84.36%, as at 31 March 2021 compared to 31
December 2020, primarily driven by an increase in construction investment by wholly-owned subsidiary Jiangsu
Changchai Machinery Co., Ltd.
4. Employee benefits payable decreased by RMB21,068,831.24, or 42.03%, as at 31 March 2021 compared to 31
December 2020, mainly because accrued salary and bonus in last period was partially paid in this period.
5. Net profit attributable to owners of the Company as the parent went up by RMB23,166,962.21, or 1649.72%,
during Q1 2021 compared to Q1 2020, primarily driven by an increase in sales revenue.
6. Net cash generated from operating activities went down by RMB203,474,326.11,during Q1 2021 compared to
Q1 2020, primarily because accounts receivable increased, and procurement costs increased as sales expanded.
7. Net cash generated from investing activities went down by RMB62,758,435.88 during Q1 2021 compared to
Q1 2020, primarily driven by an increase in construction investment by wholly-owned subsidiary Jiangsu
Changchai Machinery Co., Ltd. and the payment of capital increase to Housheng New Energy.
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
On 9 April 2020, the 24th meeting of the 8th board of directors of the Company discussed and approved the
Non-public Offering Plan of the Company for 2020. The Company intended to make non-public issuance of
domestic common shares listed in RMB to specific objects, and this matter was approved by the controlling
shareholder Changzhou Investment Group Co., Ltd. and was reviewed and adopted in the meeting of shareholders
of 2019. On 18 September 2020, the temporary meeting of the board of directors of the Company discussed and
approved the relevant revision matters concerning non-public issuance of shares, the Company supplemented and
improved the foresaid plan according to the relevant revision matters, and prepared the Non-public Offering Plan
of the Company for 2020 (Revision Version), which was discussed and approved in the second temporary meeting
of shareholders in 2020. The application of the Company about non-public offering in 2020 was reviewed and
approved by the Issuance Examination Commission of China Securities Regulatory Commission and the
Company received the written approval document from China Securities Regulatory Commission. Now the
Company is actively carrying out relevant work on non-public offering.
Progress of any share repurchase:
□ Applicable √ Not applicable
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Changchai Company, Limited First Quarterly Report 2021
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
1. Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain
Cum
/loss
ulati
on
Acco ve Purc Gain
fair Sold
Initia untin Begi fair hase /loss
value in Endi
Varie Code Nam l g nnin value d in in Acco Capit
chan the ng
ty of of e of meas g chan the the untin al
inves ges Repo carry
secur secur secur urem carry ges Repo Repo g resou
in rting ing
ities ities ities tmen ent ing recor rting rting item rces
the Perio value
t cost mode value ded Perio Perio
Repo d
l into d d
rting
equit
Perio
y
d
Othe
r
equit
Dom Fair
Foto 41,7 455, 459, 582, y Self-
estic/ value
6001 n 84,0 175, 468, 335, instr owne
forei meas 0.00 0.00 0.00 0.00
66 Moto 00.0 000. 350. 000. ume d
gn urem
r 0 00 00 00 nt funds
stock ent
inves
tmen
t
Othe
Dom Fair r
Bank 42,7 127, 92,3 151, Self-
estic/ value equit
6009 of 86,0 764, 20,2 398, owne
forei meas 0.00 0.00 0.00 0.00 y
19 Jiang 00.0 000. 00.0 000. d
gn urem instr
su 0 00 0 00 funds
stock ent ume
nt
10
Changchai Company, Limited First Quarterly Report 2021
inves
tmen
t
Othe
r
Kailo
Dom Fair non-
ng 20,0 38,2 38,9 Self-
estic/ value 664, 664, curre
3009 High 01,2 82,1 46,1 owne
forei meas 026. 0.00 0.00 0.00 026. nt
12 Tech 68.0 05.0 31.0 d
gn urem 00 00 finan
nolog 0 0 0 funds
stock ent cial
y
asset
s
Other securities
investments held at
0.00 -- 0.00 0.00 -- --
the end of the
Reporting Period
104, 621, 551, 772,
664, 664,
571, 221, 788, 679,
Total -- 026. 0.00 0.00 026. -- --
268. 105. 550. 131.
00 00
00 00 00 00
Disclosure date of
announcement on
Board’s consent for
securities investment
Disclosure date of
announcement on
shareholders’
meeting’s consent for
securities investment
(if any)
2. Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Progress of Projects Financed with Raised Funds
□ Applicable √ Not applicable
VI Operating Performance Forecast for January-June 2021
Warning of a forecast loss on or a forecast significant year-on-year change in the accumulative net profit from the
11
Changchai Company, Limited First Quarterly Report 2021
beginning of the year to the end of the next reporting period, as well as explanation of why:
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB’0,000
Specific type Capital resources Amount incurred Undue balance Overdue amount
Broker
financial Self-owned funds 730 1,130 0
products
Total 730 1,130 0
Particulars of entrusted cash management with single significant amount or low security, bad liquidity, and no
capital preservation
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause
impairment for entrusted asset management
□ Applicable √ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Communications with the Investment Community such as Researches, Inquiries and
Interviews Received during the Reporting Period
√ Applicable □ Not applicable
Index to
Place of Way Type of Contents and materials main
Date of visit Visitor
visit of visit visitor provided inquiry
information
12
Changchai Company, Limited First Quarterly Report 2021
Individual Operation and dividend of the
2021-3-30 EasyIR Other Individual EasyIR
investor Company
Individual Progress on non-public offering
2021-3-12 EasyIR Other Individual EasyIR
investor of shares by the Company
Fittings of agricultural
Individual
2021-3-5 EasyIR Other Individual machinery products of the EasyIR
investor
Company
Individual Agricultural machinery
2021-3-5 EasyIR Other Individual EasyIR
investor products of the Company
Individual The Company's layout in the
2021-3-4 EasyIR Other Individual EasyIR
investor new energy industry
Individual The Company's layout in the
2021-3-2 EasyIR Other Individual EasyIR
investor new energy industry
The Company’s measures
Individual
2021-3-1 EasyIR Other Individual actively responding to national EasyIR
investor
rural revitalization
Individual Remuneration and bonus of
2021-2-25 EasyIR Other Individual EasyIR
investor employees of the Company
Individual
2021-2-24 EasyIR Other Individual Development suggestions EasyIR
investor
Individual
2021-2-22 EasyIR Other Individual Investment suggestions EasyIR
investor
Individual Progress on non-public offering
2021-2-22 EasyIR Other Individual EasyIR
investor of shares by the Company
Individual Influence of policies on
2021-2-22 EasyIR Other Individual EasyIR
investor products of the Company
Individual
2021-2-22 EasyIR Other Individual Profit of the Company in 2020 EasyIR
investor
Individual Influence of policies on the
2021-2-21 EasyIR Other Individual EasyIR
investor Company
Individual Sales volume of agricultural
2021-2-21 EasyIR Other Individual EasyIR
investor machinery of the Company
Sales volume of diesel engines
Individual
2021-2-21 EasyIR Other Individual and related generator sets of the EasyIR
investor
Company
Individual Number of shareholders of the
2021-2-19 EasyIR Other Individual EasyIR
investor Company
Individual Production situation of lithium
2021-2-18 EasyIR Other Individual EasyIR
investor battery baffle project
13
Changchai Company, Limited First Quarterly Report 2021
Individual External cooperation of the
2021-2-18 EasyIR Other Individual EasyIR
investor Company
Individual Suggestions on external
2021-2-3 EasyIR Other Individual EasyIR
investor cooperative development
Individual Remuneration and bonus of
2021-2-3 EasyIR Other Individual EasyIR
investor employees of the Company
Individual Information disclosure of the
2021-2-3 EasyIR Other Individual EasyIR
investor Company
Individual
2021-2-2 EasyIR Other Individual Business scope EasyIR
investor
Individual
2021-1-25 EasyIR Other Individual Development suggestions EasyIR
investor
Individual The Company's layout in the
2021-1-25 EasyIR Other Individual EasyIR
investor new energy industry
Individual Customer situation of lithium
2021-1-22 EasyIR Other Individual EasyIR
investor battery baffle project
Individual
2021-1-22 EasyIR Other Individual Number of employees EasyIR
investor
Individual Operation and profit of lithium
2021-1-18 EasyIR Other Individual EasyIR
investor battery baffle project
Individual External cooperation of the
2021-1-6 EasyIR Other Individual EasyIR
investor Company
Individual Phase II construction of lithium
2021-1-5 EasyIR Other Individual EasyIR
investor battery baffle project
Individual Investment in equity of Kailong
2021-1-5 EasyIR Other Individual EasyIR
investor High Technology
Individual The Company's layout in the
2021-1-5 EasyIR Other Individual EasyIR
investor new energy industry
Individual Phase II construction of lithium
2021-1-5 EasyIR Other Individual EasyIR
investor battery baffle project
14
Changchai Company, Limited First Quarterly Report 2021
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company, Limited
31 March 2021
Unit: RMB
Item 31 March 2021 31 December 2020
Current assets:
Monetary assets 549,889,360.21 760,728,222.85
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 11,300,000.00 11,500,272.00
Derivative financial assets
Notes receivable 475,807,269.35 600,140,938.05
Accounts receivable 778,492,436.03 397,154,016.49
Accounts receivable financing
Prepayments 10,503,095.29 9,357,840.75
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 6,245,758.02 6,212,062.80
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 534,218,373.72 606,680,340.55
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 18,626,888.37 27,299,362.72
Total current assets 2,385,083,180.99 2,419,073,056.21
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Changchai Company, Limited First Quarterly Report 2021
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments
Investments in other equity instruments 835,931,950.87 685,137,950.87
Other non-current financial assets 125,697,620.25 98,732,938.63
Investment property 45,687,240.83 46,239,326.03
Fixed assets 434,629,415.15 454,181,555.68
Construction in progress 122,606,659.23 66,502,432.41
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 157,935,906.74 158,870,631.71
Development costs
Goodwill
Long-term prepaid expense 13,693.20 13,693.20
Deferred income tax assets 4,231,873.15 4,231,873.15
Other non-current assets 22,151,095.06 19,971,006.56
Total non-current assets 1,748,885,454.48 1,533,881,408.24
Total assets 4,133,968,635.47 3,952,954,464.45
Current liabilities:
Short-term borrowings 22,000,000.00 22,000,000.00
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 648,619,500.00 595,346,000.00
Accounts payable 583,254,363.62 612,757,392.46
Advances from customers 656,506.66 661,612.17
Contract liabilities 37,152,261.33 35,944,517.15
Financial assets sold under repurchase
agreements
16
Changchai Company, Limited First Quarterly Report 2021
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 29,058,330.23 50,127,161.47
Taxes payable 4,838,616.10 2,869,485.41
Other payables 196,883,165.38 197,545,076.08
Including: Interest payable
Dividends payable 3,891,433.83 3,891,433.83
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 5,435,553.31 5,233,947.12
Total current liabilities 1,527,898,296.63 1,522,485,191.86
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 56,949,737.60 56,949,737.60
Deferred income tax liabilities 103,436,664.70 80,671,598.82
Other non-current liabilities
Total non-current liabilities 160,386,402.30 137,621,336.42
Total liabilities 1,688,284,698.93 1,660,106,528.28
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
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Changchai Company, Limited First Quarterly Report 2021
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 164,328,665.43 164,328,665.43
Less: Treasury stock
Other comprehensive income 553,657,658.24 425,482,758.24
Specific reserve 18,812,986.55 18,812,986.55
Surplus reserves 325,451,531.14 325,451,531.14
General reserve
Retained earnings 802,470,334.49 777,899,079.66
Total equity attributable to owners of the
2,426,095,501.85 2,273,349,347.02
Company as the parent
Non-controlling interests 19,588,434.69 19,498,589.15
Total owners’ equity 2,445,683,936.54 2,292,847,936.17
Total liabilities and owners’ equity 4,133,968,635.47 3,952,954,464.45
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
18
Changchai Company, Limited First Quarterly Report 2021
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2021 31 December 2020
Current assets:
Monetary assets 476,010,891.53 682,322,659.41
Held-for-trading financial assets
Derivative financial assets
Notes receivable 472,437,869.35 581,230,938.05
Accounts receivable 695,794,996.90 317,828,161.25
Accounts receivable financing
Prepayments 5,954,920.63 6,592,567.26
Other receivables 23,791,683.48 24,327,355.36
Including: Interest receivable
Dividends receivable
Inventories 406,485,554.89 475,688,026.57
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 2,457,547.16 17,521,203.46
Total current assets 2,082,933,463.94 2,105,510,911.36
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 435,752,730.03 375,752,730.03
Investments in other equity instruments 835,931,950.87 685,137,950.87
Other non-current financial assets 78,750,000.00 52,500,000.00
Investment property 45,687,240.83 46,239,326.03
Fixed assets 352,115,121.32 369,194,314.03
Construction in progress 28,110,977.45 26,195,189.06
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 67,287,829.16 68,088,982.37
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Changchai Company, Limited First Quarterly Report 2021
Development costs
Goodwill
Long-term prepaid expense
Deferred income tax assets 4,179,544.86 4,179,544.86
Other non-current assets
Total non-current assets 1,847,815,394.52 1,627,288,037.25
Total assets 3,930,748,858.46 3,732,798,948.61
Current liabilities:
Short-term borrowings 5,000,000.00 5,000,000.00
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 640,879,000.00 589,534,000.00
Accounts payable 547,382,988.34 550,360,564.07
Advances from customers 656,506.66 661,612.17
Contract liabilities 32,345,200.24 32,344,514.86
Employee benefits payable 22,329,962.72 42,455,158.67
Taxes payable 1,070,869.93 1,099,861.63
Other payables 180,536,752.53 184,513,545.20
Including: Interest payable
Dividends payable 3,243,179.97 3,243,179.97
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 2,425,890.02 2,426,575.40
Total current liabilities 1,432,627,170.44 1,408,395,832.00
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
20
Changchai Company, Limited First Quarterly Report 2021
Deferred income 56,949,737.60 56,949,737.60
Deferred income tax liabilities 98,079,292.63 75,460,192.63
Other non-current liabilities
Total non-current liabilities 155,029,030.23 132,409,930.23
Total liabilities 1,587,656,200.67 1,540,805,762.23
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 183,071,147.70 183,071,147.70
Less: Treasury stock
Other comprehensive income 553,657,658.24 425,482,758.24
Specific reserve 18,812,986.55 18,812,986.55
Surplus reserves 325,451,531.14 325,451,531.14
Retained earnings 700,725,008.16 677,800,436.75
Total owners’ equity 2,343,092,657.79 2,191,993,186.38
Total liabilities and owners’ equity 3,930,748,858.46 3,732,798,948.61
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
21
Changchai Company, Limited First Quarterly Report 2021
3. Consolidated Income Statement
Unit: RMB
Item Q1 2021 Q1 2020
1. Revenue 774,218,489.69 538,139,070.21
Including: Operating revenue 774,218,489.69 538,139,070.21
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 737,847,784.06 531,160,471.23
Including: Cost of sales 658,879,419.02 468,694,592.90
Interest expense
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract
reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 3,065,396.25 3,081,767.05
Selling expense 34,871,649.31 27,568,943.45
Administrative expense 22,926,455.83 17,172,240.77
R&D expense 19,118,309.57 15,470,032.84
Finance costs -1,013,445.92 -827,105.78
Including: Interest expense 778,030.13 272,391.02
Interest income 1,419,334.80 1,559,568.83
Add: Other income 299,348.30 805,876.00
Return on investment (“-” for loss) 187,090.06 51,031.10
Including: Share of profit or loss of joint ventures
and associates
Income from the derecognition of
financial assets at amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 664,026.00
22
Changchai Company, Limited First Quarterly Report 2021
Credit impairment loss (“-” for loss) -8,105,470.30 -5,148,895.63
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss) 6,800.10 -29,514.41
3. Operating profit (“-” for loss) 29,422,499.79 2,657,096.04
Add: Non-operating income 656,281.69 131,146.74
Less: Non-operating expense 599,437.10 368,721.44
4. Profit before tax (“-” for loss) 29,479,344.38 2,419,521.34
Less: Income tax expense 4,818,244.01 1,008,368.05
5. Net profit (“-” for net loss) 24,661,100.37 1,411,153.29
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
24,661,100.37 1,411,153.29
loss)
5.1.2 Net profit from discontinued operations (“-” for
net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company
24,571,254.83 1,404,292.62
as the parent
5.2.2 Net profit attributable to non-controlling interests 89,845.54 6,860.67
6. Other comprehensive income, net of tax 128,174,900.00 -40,987,000.00
Attributable to owners of the Company as the parent 128,174,900.00 -40,987,000.00
6.1 Items that will not be reclassified to profit or loss 128,174,900.00 -40,987,000.00
6.1.1 Changes caused by remeasurements on defined
benefit schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in
128,174,900.00 -40,987,000.00
other equity instruments
6.1.4 Changes in the fair value arising from changes
in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss
6.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of investments in
other debt obligations
6.2.3 Other comprehensive income arising from the
23
Changchai Company, Limited First Quarterly Report 2021
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in
other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of
foreign currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 152,836,000.37 -39,575,846.71
Attributable to owners of the Company as the parent 152,746,154.83 -39,582,707.38
Attributable to non-controlling interests 89,845.54 6,860.67
8. Earnings per share
8.1 Basic earnings per share 0.0438 0.0025
8.2 Diluted earnings per share 0.0438 0.0025
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
24
Changchai Company, Limited First Quarterly Report 2021
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2021 Q1 2020
1. Operating revenue 731,331,198.20 503,170,117.52
Less: Cost of sales 627,530,021.12 442,502,103.14
Taxes and surcharges 2,153,521.99 2,157,929.61
Selling expense 31,562,894.27 25,275,600.91
Administrative expense 17,958,617.76 12,115,923.01
R&D expense 18,500,648.53 15,078,747.40
Finance costs -1,526,696.66 -1,041,410.01
Including: Interest expense 560,514.78 54,875.67
Interest income 1,338,682.16 1,479,923.86
Add: Other income 224,000.00 300,000.00
Return on investment (“-” for loss)
Including: Share of profit or loss of joint ventures
and associates
Income from the derecognition of
financial assets at amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss)
Credit impairment loss (“-” for loss) -8,105,470.30 -4,870,810.22
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss) 6,800.10 -29,514.41
2. Operating profit (“-” for loss) 27,277,520.99 2,480,898.83
Add: Non-operating income 118,709.98 14,530.00
Less: Non-operating expense 300,313.27 1,380.00
3. Profit before tax (“-” for loss) 27,095,917.70 2,494,048.83
Less: Income tax expense 4,171,346.29 374,107.32
4. Net profit (“-” for net loss) 22,924,571.41 2,119,941.51
4.1 Net profit from continuing operations (“-” for net
22,924,571.41 2,119,941.51
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax 128,174,900.00 -40,987,000.00
5.1 Items that will not be reclassified to profit or loss 128,174,900.00 -40,987,000.00
25
Changchai Company, Limited First Quarterly Report 2021
5.1.1 Changes caused by remeasurements on defined
benefit pension schemes
5.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other
128,174,900.00 -40,987,000.00
equity instruments
5.1.4 Changes in the fair value of the company’s credit
risks
5.1.5 Other
5.2 Items that will be reclassified to profit or loss
5.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Allowance for credit impairments in investments
in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of
foreign currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income 151,099,471.41 -38,867,058.49
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
26
Changchai Company, Limited First Quarterly Report 2021
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2021 Q1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 489,688,618.36 395,541,506.92
Net increase in customer deposits and interbank deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax rebates 10,464,646.99 8,340,486.99
Cash generated from other operating activities 2,794,943.41 3,091,386.85
Subtotal of cash generated from operating activities 502,948,208.76 406,973,380.76
Payments for commodities and services 549,122,439.03 282,175,437.06
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in interbank
loans granted
Payments for claims on original insurance contracts
Net increase in interbank loans granted
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 103,795,716.50 77,363,224.39
Taxes paid 12,047,444.92 7,741,784.34
Cash used in other operating activities 22,467,000.76 20,703,001.31
Subtotal of cash used in operating activities 687,432,601.21 387,983,447.10
Net cash generated from/used in operating activities -184,484,392.45 18,989,933.66
2. Cash flows from investing activities:
Proceeds from disinvestment 7,300,000.00 4,550,000.00
Return on investment 107,580.06 28,074.94
27
Changchai Company, Limited First Quarterly Report 2021
Net proceeds from the disposal of fixed assets, intangible assets
43,495.14 46,500.00
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 7,451,075.20 4,624,574.94
Payments for the acquisition of fixed assets, intangible assets
64,189,330.18 25,124,094.04
and other long-lived assets
Payments for investments 33,550,000.00 6,100,000.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 930,300.00
Subtotal of cash used in investing activities 97,739,330.18 32,154,394.04
Net cash generated from/used in investing activities -90,288,254.98 -27,529,819.10
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-controlling interests
to subsidiaries
Borrowings obtained 7,000,000.00
Cash generated from other financing activities 1,391,000.00
Subtotal of cash generated from financing activities 8,391,000.00
Repayments of borrowings 7,000,000.00
Payments for interest and dividends 289,328.14 272,391.02
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities
Subtotal of cash used in financing activities 7,289,328.14 272,391.02
Net cash generated from/used in financing activities 1,101,671.86 -272,391.02
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -273,670,975.57 -8,812,276.46
Add: Cash and cash equivalents, beginning of the period 629,939,540.50 544,584,744.17
6. Cash and cash equivalents, end of the period 356,268,564.93 535,772,467.71
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
28
Changchai Company, Limited First Quarterly Report 2021
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2021 Q1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 448,318,646.97 354,637,979.41
Tax rebates 8,868,604.58 5,440,557.38
Cash generated from other operating activities 2,152,635.69 2,354,261.65
Subtotal of cash generated from operating activities 459,339,887.24 362,432,798.44
Payments for commodities and services 523,031,644.55 254,044,882.14
Cash paid to and for employees 91,529,134.39 65,955,095.38
Taxes paid 7,997,764.91 3,705,225.58
Cash used in other operating activities 18,996,860.83 16,543,652.69
Subtotal of cash used in operating activities 641,555,404.68 340,248,855.79
Net cash generated from/used in operating activities -182,215,517.44 22,183,942.65
2. Cash flows from investing activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of fixed assets, intangible assets
43,495.14 46,500.00
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
Subtotal of cash generated from investing activities 43,495.14 46,500.00
Payments for the acquisition of fixed assets, intangible assets
1,958,483.50 6,656,932.63
and other long-lived assets
Payments for investments 86,250,000.00 15,000,000.00
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 88,208,483.50 21,656,932.63
Net cash generated from/used in investing activities -88,164,988.36 -21,610,432.63
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Cash generated from other financing activities 1,391,000.00
29
Changchai Company, Limited First Quarterly Report 2021
Subtotal of cash generated from financing activities 1,391,000.00
Repayments of borrowings
Payments for interest and dividends 54,375.01 54,875.67
Cash used in other financing activities
Subtotal of cash used in financing activities 54,375.01 54,875.67
Net cash generated from/used in financing activities 1,336,624.99 -54,875.67
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -269,043,880.81 518,634.35
Add: Cash and cash equivalents, beginning of the period 559,573,331.81 497,777,104.81
6. Cash and cash equivalents, end of the period 290,529,451.00 498,295,739.16
Legal representative: Shi Xinkun General manager: Zhang Xin
Head of the Company’s financial department: Jiang He
30
Changchai Company, Limited First Quarterly Report 2021
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of the New
Standards Governing Leases from 2021
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of the New
Standards Governing Leases from 2021
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
31
