Changchai Company, Limited First Quarterly Report 2023
Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2023-018
CHANGCHAI COMPANY, LIMITED
FIRST QUARTERLY REPORT 2023
Changchai Company, Limited (hereinafter referred to as the “Company”) and all the members of
the Company’s Board of Directors hereby guarantee that the contents of this Report are true,
accurate and complete and free of any misrepresentations, misleading statements or material
omissions.
Important Notes:
1. The Board of Directors, the Supervisory Committee as well as the directors, supervisors and senior
management of the Company hereby guarantee that the contents of this Report are true, accurate and complete
and free of any misrepresentations, misleading statements or material omissions, and collectively and
individually accept legal responsibility for such contents.
2. The Company’s legal representative, General Manager, and head of the financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are true, accurate and
complete.
3. Indicate whether the financial statements in this Report have been audited by an independent auditor.
□Yes √ No
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2023 Q1 2022 YoY change (%)
Operating revenue (RMB) 703,102,297.70 675,718,729.65 4.05%
Net profit attributable to the listed
23,934,592.54 -31,087,265.83 ——
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 1,107,543.07 -12,317,891.45 ——
exceptional items (RMB)
Net cash generated from/used in operating
-71,086,048.66 -47,199,474.48 ——
activities (RMB)
Basic earnings per share (RMB/share) 0.0339 -0.0441 ——
Diluted earnings per share (RMB/share) 0.0339 -0.0441 ——
Weighted average return on equity (%) 0.73% -1.02% 1.75%
31 March 2023 31 December 2022 Change (%)
Total assets (RMB) 5,361,220,136.94 5,219,359,853.42 2.72%
Equity attributable to the listed company’s
3,386,795,958.44 3,284,710,665.90 3.11%
shareholders (RMB)
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Changchai Company, Limited First Quarterly Report 2023
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2023 Note
Gain or loss on disposal of non-
current assets (inclusive of 16,000.00
impairment allowance write-offs)
Government grants through profit or
loss (exclusive of government grants
continuously given in the Company’s
1,110,261.12
ordinary course of business at fixed
quotas or amounts as per the
government’s policies and standards)
Gain or loss on fair-value changes on Increase in the fair value of trading
held-for-trading financial assets and financial assets of Jiangsu Liance
liabilities & income from disposal of Electromechanical Technology Co.,
held-for-trading financial assets and Ltd., Kailong High Technology Co.,
liabilities and available-for-sale 28,444,855.32 Ltd. and Guilin Stars Science and
financial assets (exclusive of the Technology Co., Ltd. held by the
effective portion of hedges that arise Company’s wholly-owned subsidiary
in the Company’s ordinary course of Changzhou Horizon Investment Co.,
business) Ltd. at the period-end.
Non-operating income and expense
281,036.24
other than the above
Less: Income tax effects 7,030,751.32
Non-controlling interests
-5,648.11
effects (net of tax)
Total 22,827,049.47 --
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(III) Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Consolidated Balance Sheet Items
31 March 2023 1 January 2023 Change
Item Explanation of why
(RMB) (RMB) (%)
Most of the Company’s multi-cylinder diesel
engine customers are supporting companies
of main engine, which are usually given
Accounts
743,737,858.47 370,322,179.77 100.84% longer payment days and the Company
receivable
properly allowed customers’ buying on credit
for more markets to step up efforts to expand
the market due to the product emission
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Changchai Company, Limited First Quarterly Report 2023
upgrading
Receivables Discounting some bank acceptance bills with
105,873,190.21 242,813,392.79 -56.40%
financing higher credit rating in the Reporting Period
The consolidation scope increased a
subsidiary Zhenjiang Siyang Diesel Engine
Prepayments 10,160,415.59 6,330,202.69 60.51%
Manufacturing Co., Ltd. in the Reporting
Period
Transfer to fixed assets of wholly-owned
Construction in subsidiary Jiangsu Changchai Machinery
21,187,000.73 30,281,547.56 -30.03%
progress Co., Ltd.’s construction in progress in the
Reporting Period
Employee benefits Salaries and bonuses accrued last period
21,728,474.64 49,351,022.47 -55.97% were paid in the Reporting Period
payable
2. Consolidated Income Statement Items
Change
Item Q1 2023 (RMB) Q1 2022 (RMB) Explanation of why
(%)
The consolidation scope increased a
subsidiary Zhenjiang Siyang Diesel Engine
Taxes and levies 3,617,737.48 2,683,173.54 34.83%
Manufacturing Co., Ltd. in the Reporting
Period
The wholly-owned subsidiary Jiangsu
Changchai Machinery Co., Ltd. has entered
Administrative
26,139,392.36 19,674,958.93 32.86% the production and operation stage in the
expense
Reporting Period which was still in the
construction stage in the previous period
Decreased exchange gains and interest
Finance costs 2,888,672.62 -4,724,177.18 ——
revenue
Other income 1,110,261.12 272,800.00 306.99% Increased government grants
Increase in the fair value of trading financial
assets of Jiangsu Liance Electromechanical
Technology Co., Ltd., Kailong High
Gain on changes Technology Co., Ltd. and Guilin Stars
25,718,114.28 -30,090,071.74 ——
in fair value Science and Technology Co., Ltd. held by the
Company’s wholly-owned subsidiary
Changzhou Horizon Investment Co., Ltd. at
the period-end.
Income from disposal of assets by the
Asset disposal wholly-owned subsidiary Changzhou
16,000.00 0.00 ——
income Changchai Benniu Diesel Engine Fittings
Co., Ltd.
Receipt of compensation for breach of
Non-operating
380,282.59 938,024.81 -59.46% contract in the previous period which did not
income
occur in the Reporting Period
Non-operating
99,246.35 165,774.63 -40.13% YoY decrease in abandonment losses
expense
Net profit The consolidation scope increased a
attributable to subsidiary Zhenjiang Siyang Diesel Engine
1,894,369.80 -31,629.89 ——
non-controlling Manufacturing Co., Ltd. in the Reporting
interests Period
Net profit The domestic market has improved during
attributable to the Reporting Period with the official
23,934,592.54 -31,087,265.83 ——
shareholders of implementation of the “National IV”
the Company as emission standard, and the external market
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Changchai Company, Limited First Quarterly Report 2023
the parent has also picked up, resulting in an increase in
sales and revenue; increase in income from
changes of the fair value of trading financial
assets held by the Company’s wholly-owned
subsidiary Changzhou Horizon Investment
Co., Ltd.
3. Consolidated Cash Flow Statement Items
Change
Item Q1 2023 (RMB) Q1 2022 (RMB) Explanation of why
(%)
Increase of accounts receivable since most of
the Company’s multi-cylinder diesel engine
Net cash customers are supporting companies of main
generated engine, which are usually given longer
from/used in -71,086,048.66 -47,199,474.48 —— payment days and the Company properly
operating allowed customers’ buying on credit in the
activities first quarter for more markets to step up
efforts to expand the market ，relative to the
capital return of less.
Net cash
generated Increase payments for construction projects
from/used in -119,390,601.99 -56,686,774.58 —— by the wholly-owned subsidiary Jiangsu
investing Changchai Machinery Co., Ltd.
activities
Net cash
The discounting of bank acceptance bills
generated
with lower credit ratings in the previous
from/used in -69,125.00 27,863,145.85 ——
period, which did not occur in the Reporting
financing
Period.
activities
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well
as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary Number of preference shareholders with
49,998 0
shareholders resumed voting rights (if any)
Top 10 shareholders
Shares in pledge, marked or
Name of Nature of Shareholdin Total shares Restricted
frozen
shareholder shareholder g percentage held shares held
Status Shares
Changzhou
Investment State-owned
32.26% 227,663,417 56,818,181
Group Co., corporation
Ltd.
Domestic
Chen Jian 0.66% 4,628,700 0
individual
CITIC
State-owned
Securities 0.57% 4,004,302 0
corporation
Co., Ltd.
KGI ASIA Foreign
0.44% 3,101,695 0
LIMITED corporation
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Changchai Company, Limited First Quarterly Report 2023
MORGAN
STANLEY
Foreign
& CO. 0.42% 2,978,425 0
corporation
INTERNATI
ONAL PLC.
Guotai Junan
State-owned
Securities 0.33% 2,310,314 0
corporation
Co., Ltd.
Shenwan
Hongyuan State-owned
0.31% 2,201,800 0
Securities corporation
Co., Ltd.
Huatai
State-owned
Securities 0.27% 1,921,118 0
corporation
Co., Ltd.
Domestic
Li Suinan 0.22% 1,569,100 0
individual
Huang Domestic
0.22% 1,528,891 0
Guoliang individual
Top 10 unrestricted shareholders
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
RMB-
Changzhou Investment Group
170,845,236 denominated 170,845,236
Co., Ltd.
ordinary share
RMB-
Chen Jian 4,628,700 denominated 4,628,700
ordinary share
RMB-
CITIC Securities Co., Ltd. 4,004,302 denominated 4,004,302
ordinary share
Domestically
KGI ASIA LIMITED 3,101,695 listed foreign 3,101,695
share
MORGAN STANLEY & RMB-
CO. INTERNATIONAL 2,978,425 denominated 2,978,425
PLC. ordinary share
RMB-
Guotai Junan Securities Co.,
2,310,314 denominated 2,310,314
Ltd.
ordinary share
RMB-
Shenwan Hongyuan
2,201,800 denominated 2,201,800
Securities Co., Ltd.
ordinary share
RMB-
Huatai Securities Co., Ltd. 1,921,118 denominated 1,921,118
ordinary share
Domestically
Li Suinan 1,569,100 listed foreign 1,569,100
share
Domestically
Huang Guoliang 1,528,891 listed foreign 1,528,891
share
It is unknown whether there is among the top 10 public
shareholders and the top 10 unrestricted public shareholders
Related or acting-in-concert parties among
any related parties or acting-in-concert parties as defined in the
the shareholders above
Administrative Measures for Information Regarding
Shareholding Alteration.
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Changchai Company, Limited First Quarterly Report 2023
Top 10 shareholders engaged in securities Shareholders Chen Jian held 2,968,800 shares in the Company
margin trading (if any) through his credit accounts.
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
□ Applicable √ Not applicable
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Changchai Company, Limited First Quarterly Report 2023
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company, Limited
31 March 2023
Unit: RMB
Item 31 March 2023 1 January 2023
Current assets:
Monetary assets 790,064,666.23 930,013,350.97
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial assets 397,589,178.85 370,103,602.57
Derivative financial assets
Notes receivable 301,456,950.15 297,125,872.54
Accounts receivable 743,737,858.47 370,322,179.77
Receivables financing 105,873,190.21 242,813,392.79
Prepayments 10,160,415.59 6,330,202.69
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 31,296,477.38 32,938,305.16
Including: Interest receivable
Dividends
receivable
Financial assets purchased under
resale agreements
Inventories 515,636,086.80 571,996,881.74
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 45,420,566.34 49,279,022.49
Total current assets 2,941,235,390.02 2,870,922,810.72
Non-current assets:
Loans and advances to customers
Debt investments 39,309,587.93 39,309,587.93
Other debt investments
Long-term receivables
Long-term equity investments
Investments in other equity 1,047,502,240.08 955,560,240.08
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Changchai Company, Limited First Quarterly Report 2023
instruments
Other non-current financial
373,500,000.00 373,500,000.00
assets
Investment property 41,551,660.76 42,160,779.65
Fixed assets 710,868,730.62 720,061,387.76
Construction in progress 21,187,000.73 30,281,547.56
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 155,904,460.54 157,392,217.54
Development costs
Goodwill
Long-term prepaid expense 3,269,754.40 3,279,970.32
Deferred income tax assets 26,220,575.93 26,220,575.93
Other non-current assets 670,735.93 670,735.93
Total non-current assets 2,419,984,746.92 2,348,437,042.70
Total assets 5,361,220,136.94 5,219,359,853.42
Current liabilities:
Short-term borrowings 114,942,700.07 115,437,700.65
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 558,774,169.68 471,876,397.72
Accounts payable 699,135,778.54 747,010,098.88
Advances from customers 888,392.59 837,425.55
Contract liabilities 36,378,560.53 32,843,692.83
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial
institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 21,728,474.64 49,351,022.47
Taxes and levies payable 8,066,555.78 8,570,175.39
Other payables 158,783,513.56 160,046,882.93
Including: Interest payable
Dividends payable 3,891,433.83 3,891,433.83
Fees and commissions payable
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Changchai Company, Limited First Quarterly Report 2023
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 84,601,814.24 78,645,741.16
Total current liabilities 1,683,299,959.63 1,664,619,137.58
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 36,205,625.94 36,205,625.94
Deferred income tax liabilities 180,560,050.46 161,360,251.33
Other non-current liabilities
Total non-current liabilities 216,765,676.40 197,565,877.27
Total liabilities 1,900,065,636.03 1,862,185,014.85
Owners’ equity:
Share capital 705,692,507.00 705,692,507.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 640,133,963.01 640,133,963.01
Less: Treasury stock
Other comprehensive income 733,492,404.07 655,341,704.07
Specific reserve 18,848,856.75 18,848,856.75
Surplus reserves 349,197,725.72 349,197,725.72
General reserve
Retained earnings 939,430,501.89 915,495,909.35
Total equity attributable to owners
3,386,795,958.44 3,284,710,665.90
of the Company as the parent
Non-controlling interests 74,358,542.47 72,464,172.67
Total owners’ equity 3,461,154,500.91 3,357,174,838.57
Total liabilities and owners’ equity 5,361,220,136.94 5,219,359,853.42
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
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Changchai Company, Limited First Quarterly Report 2023
2. Consolidated Income Statement
Unit: RMB
Item Q1 2023 Q1 2022
1. Revenues 703,102,297.70 675,718,729.65
Including: Operating revenue 703,102,297.70 675,718,729.65
Interest revenue
Insurance premium income
Fee and commission income
2. Costs and expenses 691,918,401.77 677,470,421.86
Including: Cost of sales 610,046,549.40 610,619,843.16
Interest costs
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 3,617,737.48 2,683,173.54
Selling expense 34,136,631.64 29,569,565.13
Administrative expense 26,139,392.36 19,674,958.93
R&D expense 15,089,418.27 19,647,058.28
Finance costs 2,888,672.62 -4,724,177.18
Including: Interest costs 2,590,486.99 2,736,515.83
Interest revenue 3,370,700.72 7,915,467.81
Add: Other income 1,110,261.12 272,800.00
Return on investment (“-” for loss) 2,726,741.04 2,152,879.03
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) 25,718,114.28 -30,090,071.74
Credit impairment loss (“-” for loss) -7,540,965.36 -9,216,954.12
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss) 16,000.00
3. Operating profit (“-” for loss) 33,214,047.01 -38,633,039.04
Add: Non-operating income 380,282.59 938,024.81
Less: Non-operating expense 99,246.35 165,774.63
4. Gross profit (“-” for loss) 33,495,083.25 -37,860,788.86
Less: Income tax expense 7,666,120.91 -6,741,893.14
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Changchai Company, Limited First Quarterly Report 2023
5. Net profit (“-” for net loss) 25,828,962.34 -31,118,895.72
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 25,828,962.34 -31,118,895.72
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 as the
23,934,592.54 -31,087,265.83
parent
5.2.2 Net profit attributable to non-controlling interests 1,894,369.80 -31,629.89
6. Other comprehensive income, net of tax 78,150,700.00 -77,678,950.00
Attributable to owners of the Company as the parent 78,150,700.00 -77,678,950.00
6.1 Items that will not be reclassified to profit or loss 78,150,700.00 -77,678,950.00
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 other
78,150,700.00 -77,678,950.00
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 other debt investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt
investments
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 103,979,662.34 -108,797,845.72
Attributable to owners of the Company as the parent 102,085,292.54 -108,766,215.83
Attributable to non-controlling interests 1,894,369.80 -31,629.89
8. Earnings per share
8.1 Basic earnings per share 0.0339 -0.0441
8.2 Diluted earnings per share 0.0339 -0.0441
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
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Changchai Company, Limited First Quarterly Report 2023
3. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2023 Q1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
447,807,917.75 481,987,177.76
services
Net increase in customer deposits and deposits from
other banks and financial institutions
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, fees and commissions received
Net increase in loans from other banks and financial
institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 13,664,218.21 14,647,419.98
Cash generated from other operating activities 4,216,912.24 6,951,907.88
Subtotal of cash generated from operating activities 465,689,048.20 503,586,505.62
Payments for commodities and services 387,355,660.67 415,423,222.76
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other
banks and financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial
institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 96,431,976.19 97,929,246.11
Taxes and levies paid 10,202,886.37 6,496,378.28
Cash used in other operating activities 42,784,573.63 30,937,132.95
Subtotal of cash used in operating activities 536,775,096.86 550,785,980.10
Net cash generated from/used in operating activities -71,086,048.66 -47,199,474.48
2. Cash flows from investing activities:
Proceeds from disinvestment 339,016,751.99 26,278,398.53
Return on investment 2,726,741.04 4,673,141.68
Net proceeds from the disposal of fixed assets,
16,000.00
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities
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Changchai Company, Limited First Quarterly Report 2023
Subtotal of cash generated from investing activities 341,759,493.03 30,951,540.21
Payments for the acquisition of fixed assets,
119,772,481.02 33,047,751.31
intangible assets and other long-lived assets
Payments for investments 341,377,614.00 53,384,875.99
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 1,205,687.49
Subtotal of cash used in investing activities 461,150,095.02 87,638,314.79
Net cash generated from/used in investing activities -119,390,601.99 -56,686,774.58
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-
controlling interests to subsidiaries
Borrowings received 7,000,000.00
Cash generated from other financing activities 27,990,520.85
Subtotal of cash generated from financing activities 34,990,520.85
Repayment of borrowings 7,000,000.00
Interest and dividends paid 69,125.00 127,375.00
Including: Dividends paid by subsidiaries to non-
controlling interests
Cash used in other financing activities
Subtotal of cash used in financing activities 69,125.00 7,127,375.00
Net cash generated from/used in financing activities -69,125.00 27,863,145.85
4. Effect of foreign exchange rates changes on cash and
cash equivalents
5. Net increase in cash and cash equivalents -190,545,775.65 -76,023,103.21
Add: Cash and cash equivalents, beginning of the
810,350,966.05 566,191,095.14
period
6. Cash and cash equivalents, end of the period 619,805,190.40 490,167,991.93
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
(II) 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.
The Board of Directors
Changchai Company, Limited
28 April 2023
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