The First Quarterly Report 2009 of Changchai Company Limited
1
CHANGCHAI COMPANY, LIMITED
THE FIRST QUARTERLY REPORT FOR YEAR 2009
§1 Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and senior
executives of the Changchai Company, Limited (hereinafter referred to as the Company)
warrant that this report does not contain any false or misleading statements or omit any
material facts and all information set forth herein are true, accurate and complete.
1.2 None of the directors, supervisors, senior management staffs demonstrated uncertainty
or disagreement about the truthfulness, accuracy, and completeness of this quarterly report.
1.3 Director He jianguang were absent from the Board meeting due to some reasons, and
respectively entrusted Director Shi Jianchun to vote on his behalf.
1.4 The first quarterly financial report has not been audited.
1.5 Person in charge of the Company Mr. Xue guojun, person in charge of the accounting
Mr. He Jianguang and person in charge of accounting organizations Mr. Tang Jianzhong
hereby confirm that the Financial Report enclosed in the Quarterly Report is true and
complete.
§2 Company Profile
2.1 Main accounting data and financial indicators
Unit: RMB
As at 31 Mar. 2009 As at 31 Dec. 2008
Increase/decrease
(%)
Total assets 2,174,620,132.37 1,897,782,775.32 14.59
Owners’ equity (shareholders’
equity)
1,312,959,728.61 1,147,886,088.12 14.38
Share capital 374,249,551.00 374,249,551.00 0.00
Net assets per share 3.51 3.07 14.33
Jan.-Mar. 2009 Jan.-Mar. 2008
Increase/decrease
(%)
Total sales 623,404,066.93 617,446,219.98 0.96
Net profit 33,923,390.49 8,073,280.59 320.19
Net cash flow arising from
operating activities
176,366,986.69 -17,006,274.41 ——
Net cash flow per share arising
from operating activities
0.47 -0.05 ——
Basic earnings per share 0.09 0.02 350.00
Diluted earnings per share 0.09 0.02 350.00
Return on equity (%) 2.58 0.56 2.02The First Quarterly Report 2009 of Changchai Company Limited
2
Return on equity after deducting
extraordinary gains and losses(%)
1.59 0.68 0.91
Items of extraordinary gains and losses
Unit: RMB
The Company acquired RMB 14,709,375.00 through sale of 4,500,000 shares of Foton
Motor.
2.2 Total number of shareholders as at the end of reporting period and shares held by the
top ten shareholders not subject to trading moratorium
Unit: Share
Total shareholders at the end
of report period
63144 shareholders (including 45158 ones of A-share and 17986 ones of
B-share)
Shares held by the top ten tradable shareholders
Name of shareholder (full name)
Number of shares not
subject to trading
moratorium
Type of share
1. State-owned Assets Supervision &
Management Committee of Changzhou
Municipal People's Government
37,424,956 Renminbi Ordinary Shares
2. Shi Hui 5,430,000 Renminbi Ordinary Shares
3. Wu Yinting 2,975,581 Renminbi Ordinary Shares
4. CHINA FOREIGN ECONOMY AND
TRADE TRUST CO., LTD.－Huifu Trust
Plan 3
2,772,306 Renminbi Ordinary Shares
5. Han Huiling 2,385,400 Renminbi Ordinary Shares
6. LGT BANK IN LIECHTENSTEIN
AKTIENGESELLSCHAFT
2,180,061 Domestically listed foreign shares
7. China Construction Bank－ICBCCS
Select Balanced Equity Fund
1,999,906 Renminbi Ordinary Shares
8. GUOTAI JUNAN SECURITIES 1,483,204 Domestically listed foreign shares
Items of extraordinary gains and losses
Amount from the year-begin to
the end of reporting period
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 financial liabilities and financial assets
available for sales except for effective hedging related with
normal businesses of the Company
14,709,375.00
Net non-operating income and expenses 1,965,318.66
Impact on income tax -3,677,343.75
Total 12,997,349.91The First Quarterly Report 2009 of Changchai Company Limited
3
(HONGKONG) LIMITED
9. China Resources SZITIC Trust Co.,
Ltd. –MoneyMore Investment Fund Trust
Plan Phase 1
1,255,949 Renminbi Ordinary Shares
10. Wu lanzhen 1,231,900 Renminbi Ordinary Shares
§3 Significant Events
3.1 Particular about large-margin change of main accounting statement item and financial
index and its reason
√Applicable □Inapplicable
1. In the reporting period, the cash increased by 43.61% compared with the amount at year-begin, which
was mainly because the Company had good sale in the reporting period and acquired cash through sales of
inventory at year-begin and sales of 4,500,000 shares of Foton Motor in the reporting period.
2. At the end of the reporting period, transactional financial assets decreased due to the sales of
4,500,000
shares of Foton Motor in the reporting period.
3. Accounts receivable increased by 67.37% compared with the amount at year-begin, which was mainly
because the Company gave appropriate credits in sale based on agreements and plans in this quarter, so as
to expand market space.
4. Inventory decreased by 58.45% compared with the amount at year-begin, which was mainly because
part of inventory prepared by the Company for this quarter had been sold out.
5. Financial assets available for sale increased by 100.48% compared with the amount at year-begin,
which was mainly because the fair value of 36,125,000 shares of Foton Motor held by the Company
increased at the end of the reporting period.
6. Other payable increased by 45.12% compared with the amount at year-begin, which was mainly
because the Company had good sale in the reporting period and part of selling concession had been
withdrawn according to the sales policies of the Company.
7. Deferred tax liabilities increased by 106.61% compared with the amount at year-begin, which was
mainly because the fair value of 36,125,000 shares of Foton Motor held by the Company increased at the
end of the reporting period.
8. Investment income increased compared with that of last year, which was because the Company
acquired RMB 14,710,000 through sale of 4,500,000 shares of Foton Motor.
9. Net profit increased by 320.19% compared with that of last year, which was mainly because the
Company exerted control over production cost, and the major business profits increased with the increase
of gross profit rate. Besides, the sale of 4,500,000 shares of Foton Motor brought about an income of
RMB 14,710,000.
3.2 The progress and influence of significant events and the analysis and explanation on
resolving proposalThe First Quarterly Report 2009 of Changchai Company Limited
4
□Applicable √Inapplicable
3.3 The fulfillment of the commitment made by the Company, shareholders and the actual
controller
□Applicable √Inapplicable
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made
during the period from the beginning of the year to the end of the next report period
compared with the same period of the last year according to prediction, as well as
explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Whether there is the capital provided by the Company to the controlling shareholders
or other related parties, or external guarantee in violation of established procedure
□Applicable √Inapplicable
3.5.2 Plan to the Share Holdings proposed or implemented by the shareholders holding
over 30% equities of the Company in the reporting period
□Applicable √Inapplicable
3.5.3 Securities investment
√Applicable □Inapplicable
Unit: RMB Yuan
No.
Type of
securities
Securities
code
Short form
of securities
Initial
investment
amount
(Yuan)
Holding
number
Book value in
period-end
Proportion of
total securities
in period-end
(%)
Gains/losses in
the report period
Other securities investments held in period-end 0.00 - 0.00 0.00% 0.00
Securities investment gain/loss sold out in the
period
- - - - 14,709,375.00
Total 0.00 0.00 0.00% 14,709,375.00
3.5.4 Equity of other listed companies held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Stock code
Short form of
stock
Initial
investment
amount
Equity
proportion
in that of
this
company
Book value at
the period-end
Profit and
loss in the
report
period
Change in the
owners’ equity
in the report
period
Subject for
accounting
calculation
Source of
shares
600166 Foton Motor 41,784,000.00 4.45% 348,606,250.00 0 174,845,000.00
Financial ass
ets available
Exchange
assets ofThe First Quarterly Report 2009 of Changchai Company Limited
5
for sale Changcha
i Group
in 1999
900953 *ST Kaima B 31,706,441.63 5.49% 31,706,441.63 0 0.00
Long-term in
vestment on
stocks
By
lawsuits
600377
Ninghu
Expressway
90,500.00 294,000.00 0 22,000.00
Financial ass
ets available
for sale
Agreeme
nt
transfer
Total 73,580,941.63 380,606,691.63 0 174,867,000.00
3.5.5Equity of non-listed financial enterprises held by the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Name
Initial
investment
amount
Number of
shares held
Equity
proportion
in that of
this
company
Book value at
the
period-end
Profit and
loss in the
report
period
Change in the
owners’
equity in the
report period
Subject for
accounting
calculation
Source of
shares
Bank of
Jiangsu
38,000,000.00 38,000,000 0.48% 38,000,000.00 0.00 0.00
long-term
equity
investment
sponsor
shares
Total 38,000,000.00 38,000,000 - 38,000,000.00 0.00 0.00 - -
3.5.6 Significant Contract in the reporting period
□Applicable √Inapplicable
3.5.7 Particulars about reception of researches, communications and interviews in the
report period
√Applicable □Inapplicable
Reception time Reception place Reception way Visitor
Main contents of discussion
and information provided
5 Feb. 2009
The 3rd meeting room of the
Company
By field research
Fortune SGAM Fund
Management Co.,
LTD. SYWG BNP
Paribas Asset
Management Co., Ltd
Macro-economic influence on
the Company and the
Company’s main operation, as
well as future development
6 Feb. 2009
The 3rd meeting room of the
Company
By field research
Changjiang securities
ICBCCS
Macro-economic influence on
the Company and the
Company’s main operation, as
well as future development
9 Feb. 2009 The 3rd meeting room of the By field research Guosen securities The Company’s mainThe First
Quarterly Report 2009 of Changchai Company Limited
6
Company operation, as well as future
development
Board of Directors of
Changchai Company, Limited
Apr. 24, 2009The First Quarterly Report 2009 of Changchai Company Limited
7
Financial Statement
Balance Sheet
Prepared by Changchai Company, Limited 31 Mar. 2009 Unit: RMB Yuan
Amount at the period-end Amount at the period-begin
Items
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 578,429,098.36 539,464,915.09 402,778,967.15 378,820,707.08
Settlement fund reserve
Dismantle fund
Transaction financial asset 21,645,000.00 21,645,000.00
Notes receivable 16,659,276.74 15,729,276.74 27,121,088.60 26,721,088.60
Account receivable 341,792,978.84 303,089,390.20 204,208,036.51 160,990,383.74
Account paid in advance 16,665,088.10 13,276,306.97 9,683,253.18 8,569,751.19
Premium receivables
Receivables from reinsures
Reinsurance contract reserve
receivables
Interest receivable
Other account receivable 26,447,920.80 26,163,553.54 28,063,069.38 27,899,889.79
Financial assets purchased
under agreements to resell
Inventories 134,531,468.98 105,105,496.55 323,777,713.81 289,425,993.52
Non-current assets due
within 1 year
0.00 0.00
Other current assets 162,309.44
Total current assets 1,114,688,141.26 1,002,828,939.09 1,017,277,128.63 914,072,813.92
Non-current assets:
Loans and advance
Available for sale financial
assets
348,900,250.00 348,900,250.00 174,033,250.00 174,033,250.00
Held to maturity investments 0.00 0.00
Long-term account
receivable
0.00 0.00
Long-term equity
investment
93,179,255.93 143,519,055.93 93,179,255.93 143,519,055.93
Investing property 72,187,330.43 72,187,330.43 72,739,415.63 72,739,415.63
Fixed asset 370,762,256.43 313,862,409.46 364,125,318.48 308,323,648.71
Project in construction 68,878,580.41 65,606,037.01 69,705,698.81 67,525,098.81
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 105,404,080.79 103,073,999.71 106,102,470.72 103,756,831.97The First Quarterly Report
2009 of Changchai Company Limited
8
Development expense
Goodwill
Long-term expense to be
apportioned
Deferred tax assets 620,237.12 620,237.12 620,237.12 620,237.12
Other non-current assets
Total of non-current assets 1,059,931,991.11 1,047,769,319.66 880,505,646.69 870,517,538.17
Total of assets 2,174,620,132.37 2,050,598,258.75 1,897,782,775.32 1,784,590,352.09
Current liabilities:
Short-term borrowings 51,200,000.00 51,200,000.00
Borrowing from Central
Bank
Deposits and due to banks
and other financial
institutions
Placements from banks and
other financial institutions
Transaction financial
liabilities
Notes payable 153,238,400.00 136,150,000.00 136,103,600.00 126,990,000.00
Account payable 325,708,053.45 300,564,049.67 361,368,076.43 334,431,191.26
Account received in
advance
52,711,403.74 52,565,000.86 24,690,165.89 24,543,763.01
Financial assets sold under
agreements to repurchase
Handling charges and
commission payable
Employee’s compensation
payable
6,040,186.80 3,597,460.95 25,369,781.88 21,831,003.69
Tax payable -9,650,187.10 -7,084,051.64 -29,212,801.62 -27,781,020.54
Interest payable
Other account payable
Dividend payable 128,501,550.12 125,848,752.28 88,548,123.52 89,518,212.18
Due to reinsures
Insurance contract reserve
Customer deposits
Amount payables under
security underwriting
Non-current liabilities due
within 1 year
0.00 0.00
Other current liabilities 7,075,231.90 3,250,004.97 4,654,904.31 3,771,298.47
Total current liabilities 714,824,638.91 614,891,217.09 662,721,850.41 573,304,448.07
Non-current liabilities:
Long-term borrowings 62,000,000.00 62,000,000.00 42,000,000.00 42,000,000.00The First Quarterly Report 2009
of Changchai Company Limited
9
Debentures payable
Long-term payables
Specific purpose account
payables
690,000.00 690,000.00 690,000.00 690,000.00
Provisions for contingent
liabilities
Deferred tax liabilities 76,756,437.50 76,756,437.50 37,149,762.50 37,149,762.50
Other non-current liabilities
Total non-current liabilities 139,446,437.50 139,446,437.50 79,839,762.50 79,839,762.50
Total liabilities 854,271,076.41 754,337,654.59 742,561,612.91 653,144,210.57
Owner’s equity
Share capital 374,249,551.00 374,249,551.00 374,249,551.00 374,249,551.00
Capital surplus 403,634,436.26 413,313,622.45 272,484,186.26 282,163,372.45
Less: Treasury Stock
Reserved fund 240,369,344.92 240,369,344.92 240,369,344.92 240,369,344.92
General risk provision
Retained earnings 294,706,396.43 268,328,085.79 260,783,005.94 234,663,873.15
Foreign exchange difference
Total owners' equity
attributable to holding
company
1,312,959,728.61 1,296,260,604.16 1,147,886,088.12 1,131,446,141.52
Minority interest 7,389,327.35 7,335,074.29
Total owner’s equity 1,320,349,055.96 1,296,260,604.16 1,155,221,162.41 1,131,446,141.52
Total liabilities and owner’s
equity
2,174,620,132.37 2,050,598,258.75 1,897,782,775.32 1,784,590,352.09
Income Statement
Prepared by Changchai Company, Limited Jan.-Mar. 2009 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 623,404,066.93 646,619,794.64 617,446,219.98 624,698,235.51
Including: Sales 623,404,066.93 646,619,794.64 617,446,219.98 624,698,235.51
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 602,423,773.29 623,347,762.12 599,938,175.83 607,947,551.88
Including: Cost of sales 556,267,223.99 582,625,411.77 552,087,411.73 564,654,528.81
Interests expenses
Handling charges and
commission expenses
Claim expenses-netThe First Quarterly Report 2009 of Changchai Company Limited
10
Provision for insurance
liability reserve
Expenses for reinsurance
accepted
Payments on surrenders
Policyholder dividends
Taxes and associate charges 32,212.93 126,863.37
Selling and distribution
expenses
21,296,915.14 20,636,519.28 20,808,650.10 20,114,232.20
Administrative expenses 26,501,942.64 22,836,588.64 30,521,201.10 27,427,878.46
Financial expense -1,674,521.41 -2,750,757.57 -3,605,950.47 -4,249,087.59
Impairment loss
Add: gain/(loss) from change
in fair value (“-” means loss)
-9,990,000.00 -9,990,000.00
Gain/(loss) from investment
(“-” means loss)
14,709,375.00 14,709,375.00 0.00 0.00
Including: income form
investment on affiliated
enterprise and jointly
enterprise
Foreign exchange difference
(“-” means loss)
III. Business profit (“-”
means loss)
35,689,668.64 37,981,407.52 7,518,044.15 6,760,683.63
Add: non-business income 4,553,275.43 1,875,690.50 1,318,259.61 847,376.49
Less: non-business expense 2,587,956.77 2,515,541.63 2,974,840.87 2,974,840.87
Including: loss from
non-current asset disposal
IV. Total profit (“-” means
loss)
37,654,987.30 37,341,556.39 5,861,462.89 4,633,219.25
Less: Tax expense 3,677,343.75 3,677,343.75 -2,497,500.00 -2,497,500.00
V. Net profit (“-” means
loss)
33,977,643.55 33,664,212.64 8,358,962.89 7,130,719.25
Attributable to parent
company
33,923,390.49 33,664,212.64 8,073,280.59 7,130,719.25
Minority interest 54,253.06 285,682.30
VI. Earnings per share
(I) basic earnings per share 0.09 0.02
(II) diluted earnings per
share
0.09 0.02The First Quarterly Report 2009 of Changchai Company Limited
11
Cash Flow Statement
Prepared by Changchai Company, Limited Jan.- Mar. 2009 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidation Parent company Consolidation Parent company
1. Cash flows for operating
activities:
Cash received from sales of
goods or rending of services
725,882,550.39 709,078,803.47 631,584,789.76 647,698,264.22
Cash received on deposits
and from banks and other
financial institutions
Net increased cash received
on borrowings from central
bank
Cash received on placements
from other financial
institutions
Premium received
Cash received from
reinsurance
Net increased amount
received on policyholder
deposit and investment
Cash received from disposal
of held for trading financial
assets
Interests, handling charges
and commission received
Cash received on placements
from bank, net
Cash received under
repurchasing, net
Refund of tax and fare
received
2,402,342.35
Other cash received relating
to operating activities
3,757,117.69 3,632,949.79 2,358,780.74 2,096,460.85
Sub-total of cash inflows 732,042,010.43 712,711,753.26 633,943,570.50 649,794,725.07
Cash paid for goods and
services
497,890,362.12 500,715,993.20 587,782,105.71 601,368,302.86
Loans and advances drawn
Cash paid to central bank,
banks and other financialThe First Quarterly Report 2009 of Changchai Company Limited
12
institutions, net
Claims paid
Interests, handling charges
and commission paid
Dividends paid to
policyholders
Cash paid to and on behalf of
employees
44,790,369.84 40,282,634.22 49,560,259.46 45,044,010.58
Tax and fare paid 2,202,793.17 1,432,473.98 2,982,589.13 2,439,252.32
Other cash paid relating to
operating activities
10,791,498.61 10,586,583.96 10,624,890.61 9,826,423.52
Sub-total of cash outflows 555,675,023.74 553,017,685.36 650,949,844.91 658,677,989.28
Net cash flow from operating
activities
176,366,986.69 159,694,067.90 -17,006,274.41 -8,883,264.21
2. Cash Flows from
Investment Activities:
Cash received from return of
investments
Cash received from
investment income
14,709,375.00 14,709,375.00
Net cash received from
disposal of fixed assets,
intangible assets and other
long-term assets
98,254.30 98,254.30 105,522.40 105,522.40
Proceeds from sale of
subsidiaries and other
operating units
Other cash received relating
to investment activities
Sub-total of cash inflows 14,807,629.30 14,807,629.30 105,522.40 105,522.40
Cash paid for acquiring fixed
assets, intangible assets and
other long-term assets
33,727,894.09 32,635,950.69 43,218,945.53 42,439,587.70
Cash paid for acquiring
investments
Net cash used in loans
Net cash used in acquiring
subsidiaries and other
operating units
Other cash paid relating to
investment activities
Sub-total of cash outflows 33,727,894.09 32,635,950.69 43,218,945.53 42,439,587.70
Net cash flow from investing
activities
-18,920,264.79 -17,828,321.39 -43,113,423.13 -42,334,065.30
3. Cash Flows fromThe First Quarterly Report 2009 of Changchai Company Limited
13
Financing Activities:
Cash received from
absorbing investment
Including: Cash received
from increase in minority
interest
Cash received from
borrowings
25,500,000.00 20,000,000.00 0.00 0.00
Cash received from issuing
debentures
Other proceeds relating to
financing activities
5,174,043.63 5,174,043.63
Sub-total of cash inflows 25,500,000.00 20,000,000.00 5,174,043.63 5,174,043.63
Cash paid for settling debt 5,500,000.00 4,000,000.00
Cash paid for distribution of
dividends or profit or
reimbursing interest
1,796,590.69 1,221,538.50 1,504,856.72 926,691.83
Including: dividends or profit
paid to minority interest
Other cash payments relating
to financing activities
Sub-total of cash outflows 7,296,590.69 1,221,538.50 5,504,856.72 926,691.83
Net cash flow from financing
activities
18,203,409.31 18,778,461.50 -330,813.09 4,247,351.80
4. Effect of foreign exchange
rate changes
5. Increase in cash and cash
equivalents
175,650,131.21 160,644,208.01 -60,450,510.63 -46,969,977.71
Add : Cash and cash
equivalents at year-begin
402,778,967.15 378,820,707.08 443,234,034.61 417,975,515.87
6.Cash and cash equivalents
at the end of the year
578,429,098.36 539,464,915.09 382,783,523.98 371,005,538.16
