Changchai Company, Limited Third Quarterly Report 2023
Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2023-067
CHANGCHAI COMPANY, LIMITED
THIRD QUARTERLY REPORT 2023
Changchai Company, Limited (hereinafte r referred to as the “Company”) and all the
me mbers 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
Q3 2023 YoY change (%) Q1-Q3 2023 YoY change (%)
Operating revenue
458,557,165.00 -15.95% 1,809,074,804.85 4.95%
(RMB)
Net profit attributable to
the listed company’s 24,931,699.23 -83.42% 156,869,023.89 15.51%
shareholders (RMB)
Net profit attributable to
the listed company’s
-16,029,859.81 —— -10,204,315.83 ——
shareholders before
exceptional items (RMB)
Net cash generated
from/used in operating —— —— -214,128,249.30 ——
activities (RMB)
Basic earnings per share
0.0353 -83.42% 0.2223 15.54%
(RMB/share)
Diluted earnings per
0.0353 -83.42% 0.2223 15.54%
share (RMB/share)
Weighted average return 0.71% -4.04% 4.67% 0.46%
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Changchai Company, Limited Third Quarterly Report 2023
on equity (%)
31 December
30 September 2023 Change (%)
2022
Total assets (RMB) 5,495,618,169.81 5,219,359,853.42 5.29%
Equity attributable to the
listed company’s 3,513,146,322.70 3,284,710,665.90 6.95%
shareholders (RMB)
(II) Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Q3 2023 Q1-Q3 2023 Note
Gain or loss on disposal of non-
current assets (inclusive of 305,204.87 105,700,898.12
impairment allowance write-offs)
Government grants through profit or
loss (exclusive of government grants
continuously given in the Company’s
945,026.58 4,244,083.10
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
held-for-trading financial assets and
Increased fair value of the
liabilities & income from disposal of
equity interests held by the
held-for-trading financial assets and
Company in Jiangsu Horizon
liabilities and available-for-sale 44,644,600.55 67,231,978.11
New Energy Technology Co.,
financial assets (exclusive of the
Ltd. and dividend payments of
effective portion of hedges that arise
Bank of Jiangsu
in the Company’s ordinary course of
business)
Non-operating income and expense
-939,156.94 -1,740,966.10
other than the above
Less: Income tax effects 4,009,802.82 8,631,372.02
Non-controlling interests
-15,686.80 -268,718.51
effects (net of tax)
Total 40,961,559.04 167,073,339.72 --
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
30 September 1 January 2023 Change
Item Explanation of why
2023 (RMB) (RMB) (%)
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Changchai Company, Limited Third Quarterly Report 2023
The Company properly allowed customers’
buying on credit for more markets and multi-
Accounts
948,500,359.63 370,322,179.77 156.13% cylinder diesel engine customers are mainly
receivable
supporting companies of main engine, which
are usually given longer payment days.
Receivables Decreased bank acceptance notes with high
68,624,801.14 242,813,392.79 -71.74%
financing credit ratings
Increased prepayments for suppliers to
Prepayments 13,917,494.12 6,330,202.69 119.86%
provide more support for them
Compensation to be received for land
Other receivables 85,082,839.10 32,938,305.16 158.31%
expropriation
Other current Decreased overpaid value added tax
1,440,860.14 49,279,022.49 -97.08%
assets
Deferred income Decreased deductible losses before offsetting
4,617,363.32 26,220,575.93 -82.39%
tax assets
Suppliers were paid more often in the form
Notes payable 654,553,381.77 471,876,397.72 38.71%
of notes payable.
Employee benefits Salaries and bonuses accrued last year were
14,127,692.19 49,351,022.47 -71.37%
payable paid in the Reporting Period
Taxes and levies Decreased value added tax payable and other
5,309,868.70 8,570,175.39 -38.04%
payable taxes and levies payable
2. Consolidated Income Statement Items for Q1~Q3
Q1~Q3 2023 Q1~Q3 2022 Change
Item Explanation of why
(RMB) (RMB) (%)
Decreased exchange gains and interest
Finance costs -4,386,564.04 -19,745,726.63 ——
revenue
Other income 4,244,083.10 3,046,711.99 39.30% Increased government grants
The fair value of the equity interests held by
the Company in Jiangsu Horizon New
Gain on changes
50,146,450.23 147,105,037.74 -65.91% Energy Technology Co., Ltd. increased
in fair value
slower during the current period compared
with the same period of last year.
The same period of last year saw reversal of
Asset impairment
-565,273.49 4,947,828.84 -111.42% inventory valuation allowances, with no such
loss
reversal in the current period.
Expropriation of constructions on the state-
Asset disposal
105,700,898.12 -361,395.36 —— owned land of the Changzhou Wuxing
income
branch company during the Reporting Period
The main reason is that the merger cost of the
company's acquisition of 41.5% equity in
Zhenjiang Siyang Diesel Engine
Non-operating
635,091.37 3,745,972.29 -83.05% Manufacturing Co., Ltd. last year was less
income
than the fair value share of identifiable net
assets obtained, with no such goodwill in the
current period.
Non-operating Increased abandonment losses during the
2,376,057.47 1,092,345.39 117.52%
expense Reporting Period
Unused deferred income tax assets that are
Income tax
12,136,766.20 21,137,842.55 -42.58% deductible against losses during the
expense
Reporting Period
Net profit Increased profit of subsidiary Zhenjiang
attributable to 6,051,686.40 1,084,518.63 458.01% Siyang Diesel Engine Manufacturing Co.,
non-controlling Ltd. during the Reporting Period
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Changchai Company, Limited Third Quarterly Report 2023
interests
3. Consolidated Cash Flow Statement Items for Q1~Q3
Q1~Q3 2023 Q1~Q3 2022 Change
Item Explanation of why
(RMB) (RMB) (%)
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 -214,128,249.30 -82,550,839.42 ——
payment days and the Company properly
operating
allowed customers’ buying on credit for
activities
more markets to step up efforts to expand the
market, relative to the capital return of less.
The same period of last year saw the
acquisition of a 41.5% interest in Zhenjiang
Siyang and a capital increase by the
Net cash
Company to Jiangsu Horizon New Energy
generated
Technology Co., Ltd., with no such
from/used in 12,802,394.50 -50,712,854.83 ——
investments in the current period.
investing
Meanwhile, part of the compensation for the
activities
expropriation of land of the Changzhou
Wuxing branch company was received in the
current period.
Net cash The same period of last year saw discounting
generated of bank acceptance notes with lower credit
from/used in -8,773,914.91 52,000,140.67 —— ratings, with no such events in the current
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
56,385 0
shareholders resumed voting rights (if any)
Top 10 shareholders
Shares in pledge, marked or
Name of Nature of Shareholding Total shares Restricted
frozen
shareholder shareholder percentage held shares held
Status Shares
Changzhou
Investment State-owned
32.26% 227,663,417 56,818,181
Group Co., corporation
Ltd.
MORGAN
STANLEY
Foreign
& CO. 1.10% 7,769,569
corporation
INTERNATI
ONAL PLC.
Domestic
Chen Jian 0.57% 4,042,600
individual
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Changchai Company, Limited Third Quarterly Report 2023
KGI ASIA Foreign
0.44% 3,101,695
LIMITED corporation
CITIC
Securities State-owned
0.41% 2,902,151
Company corporation
Limited
MERRILL
LYNCH Foreign
0.35% 2,442,573
INTERNATI corporation
ONAL
Domestic
Wu Chunhua 0.35% 2,442,200
individual
Shenwan
Hongyuan State-owned
0.24% 1,686,141
Securities corporation
Co., Ltd.
Domestic
Li Suinan 0.23% 1,593,800
individual
Zhang Domestic
0.22% 1,545,300
Wenbing 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
MORGAN STANLEY & RMB-
CO. INTERNATIONAL 7,769,569 denominated 7,769,569
PLC. ordinary share
RMB-
Chen Jian 4,042,600 denominated 4,042,600
ordinary share
Domestically
KGI ASIA LIMITED 3,101,695 listed foreign 3,101,695
share
RMB-
CITIC Securities Company
2,902,151 denominated 2,902,151
Limited
ordinary share
RMB-
MERRILL LYNCH
2,442,573 denominated 2,442,573
INTERNATIONAL
ordinary share
RMB-
Wu Chunhua 2,442,200 denominated 2,442,200
ordinary share
RMB-
Shenwan Hongyuan
1,686,141 denominated 1,686,141
Securities Co., Ltd.
ordinary share
Domestically
Li Suinan 1,593,800 listed foreign 1,593,800
share
RMB-
Zhang Wenbing 1,545,300 denominated 1,545,300
ordinary share
It is unknown whether there is among the top 10 public
Related or acting-in-concert parties among the
shareholders and the top 10 unrestricted public shareholders
shareholders above
any related parties or acting-in-concert parties as defined in
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Changchai Company, Limited Third Quarterly Report 2023
the Administrative Measures for Information Regarding
Shareholding Alteration.
Chen Jian and Wu Chunhua respectively held 2,478,800 and
Top 10 shareholders engaged in securities
2,442,200 shares in the Company through their credit
margin trading
accounts.
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable Not applicable
III Other Significant Events
□ Applicable Not applicable
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company, Limited
30 September 2023
Unit: RMB
Item 30 September 2023 1 January 2023
Current assets:
Monetary assets 793,921,697.53 930,013,350.97
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial assets 282,842,226.89 370,103,602.57
Derivative financial assets
Notes receivable 302,393,726.46 297,125,872.54
Accounts receivable 948,500,359.63 370,322,179.77
Receivables financing 68,624,801.14 242,813,392.79
Prepayments 13,917,494.12 6,330,202.69
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 85,082,839.10 32,938,305.16
Including: Interest receivable
Dividends
receivable
Financial assets purchased under
resale agreements
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Changchai Company, Limited Third Quarterly Report 2023
Inventories 598,301,697.90 571,996,881.74
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 1,440,860.14 49,279,022.49
Total current assets 3,095,025,702.91 2,870,922,810.72
Non-current assets:
Loans and advances to customers
Debt investments 40,368,109.09 39,309,587.93
Other debt investments
Long-term receivables
Long-term equity investments
Investments in other equity
1,046,911,240.08 955,560,240.08
instruments
Other non-current financial
412,914,576.80 373,500,000.00
assets
Investment property 40,361,736.50 42,160,779.65
Fixed assets 668,250,365.81 720,061,387.76
Construction in progress 34,490,146.96 30,281,547.56
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 148,221,028.54 157,392,217.54
Development costs
Goodwill
Long-term prepaid expense 3,064,658.61 3,279,970.32
Deferred income tax assets 4,617,363.32 26,220,575.93
Other non-current assets 1,393,241.19 670,735.93
Total non-current assets 2,400,592,466.90 2,348,437,042.70
Total assets 5,495,618,169.81 5,219,359,853.42
Current liabilities:
Short-term borrowings 106,666,549.81 115,437,700.65
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 654,553,381.77 471,876,397.72
Accounts payable 599,509,101.34 747,010,098.88
Advances from customers 855,803.44 837,425.55
Contract liabilities 35,020,256.88 32,843,692.83
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Changchai Company, Limited Third Quarterly Report 2023
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 14,127,692.19 49,351,022.47
Taxes and levies payable 5,309,868.70 8,570,175.39
Other payables 170,503,548.85 160,046,882.93
Including: Interest payable
Dividends payable 3,891,433.83 3,891,433.83
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 100,476,641.21 78,645,741.16
Total current liabilities 1,687,022,844.19 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 33,648,328.84 36,205,625.94
Deferred income tax liabilities 183,284,815.01 161,360,251.33
Other non-current liabilities
Total non-current liabilities 216,933,143.85 197,565,877.27
Total liabilities 1,903,955,988.04 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
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Changchai Company, Limited Third Quarterly Report 2023
Less: Treasury stock
Other comprehensive income 732,990,054.07 655,341,704.07
Specific reserve 19,824,064.73 18,848,856.75
Surplus reserves 349,197,725.72 349,197,725.72
General reserve
Retained earnings 1,065,308,008.17 915,495,909.35
Total equity attributable to owners
3,513,146,322.70 3,284,710,665.90
of the Company as the parent
Non-controlling interests 78,515,859.07 72,464,172.67
Total owners’ equity 3,591,662,181.77 3,357,174,838.57
Total liabilities and owners’ equity 5,495,618,169.81 5,219,359,853.42
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2023 Q1~Q3 2022
1. Revenues 1,809,074,804.85 1,723,822,161.11
Including: Operating revenue 1,809,074,804.85 1,723,822,161.11
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 1,793,921,012.03 1,723,250,063.20
Including: Cost of sales 1,550,178,804.98 1,528,285,603.14
Interest expense
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 11,219,574.86 10,481,397.49
Selling expense 91,990,466.03 80,388,110.83
Administrative expense 76,256,928.17 63,510,263.02
R&D expense 68,661,802.03 60,330,415.35
Finance costs -4,386,564.04 -19,745,726.63
Including: Interest expense 4,289,281.12 6,012,305.10
Interest income 8,242,392.28 8,356,889.05
Add: Other income 4,244,083.10 3,046,711.99
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Changchai Company, Limited Third Quarterly Report 2023
Return on investment (“-” for loss) 17,099,924.85 13,836,894.98
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) 50,146,450.23 147,105,037.74
Credit impairment loss (“-” for loss) -14,981,433.04 -13,768,089.86
Asset impairment loss (“-” for loss) -565,273.49 4,947,828.84
Asset disposal income (“-” for loss) 105,700,898.12 -361,395.36
3. Operating profit (“-” for loss) 176,798,442.59 155,379,086.24
Add: Non-operating income 635,091.37 3,745,972.29
Less: Non-operating expense 2,376,057.47 1,092,345.39
4. Gross profit (“-” for loss) 175,057,476.49 158,032,713.14
Less: Income tax expense 12,136,766.20 21,137,842.55
5. Net profit (“-” for net loss) 162,920,710.29 136,894,870.59
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for
162,920,710.29 136,894,870.59
net loss)
5.1.2 Net profit from discontinued operations (“-”
for net loss)
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the
156,869,023.89 135,810,351.96
Company as the parent (“-” for net loss)
5.2.1 Net profit attributable to non-controlling
6,051,686.40 1,084,518.63
interests (“-” for net loss)
6. Other comprehensive income, net of tax 77,648,350.00 107,325,436.79
Attributable to owners of the Company as the parent 77,648,350.00 107,325,436.79
6.1 Items that will not be reclassified to profit or
77,648,350.00 107,325,436.79
loss
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
77,648,350.00 107,325,436.79
in 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 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
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Changchai Company, Limited Third Quarterly Report 2023
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 240,569,060.29 244,220,307.38
7.1 Attributable to owners of the Company as the
234,517,373.89 243,135,788.75
parent
7.2 Attributable to non-controlling interests 6,051,686.40 1,084,518.63
8. Earnings per share
8.1 Basic earnings per share 0.2223 0.1924
8.2 Diluted earnings per share 0.2223 0.1924
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2023 Q1~Q3 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1,446,377,641.19 1,470,088,784.47
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 88,252,376.59 23,550,037.23
Cash generated from other operating activities 15,970,772.52 17,394,468.43
Subtotal of cash generated from operating activities 1,550,600,790.30 1,511,033,290.13
Payments for commodities and services 1,374,158,537.72 1,204,438,609.81
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
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Changchai Company, Limited Third Quarterly Report 2023
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 242,312,537.73 241,596,494.16
Taxes and levies paid 31,292,358.05 47,369,925.46
Cash used in other operating activities 116,965,606.10 100,179,100.12
Subtotal of cash used in operating activities 1,764,729,039.60 1,593,584,129.55
Net cash generated from/used in operating activities -214,128,249.30 -82,550,839.42
2. Cash flows from investing activities:
Proceeds from disinvestment 877,716,751.99 89,591,553.34
Return on investment 17,099,924.85 13,945,782.65
Net proceeds from the disposal of fixed assets,
58,171,702.95 4,424.78
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities 208,889.64
Subtotal of cash generated from investing activities 952,988,379.79 103,750,650.41
Payments for the acquisition of fixed assets,
150,108,371.29 42,948,956.55
intangible assets and other long-lived assets
Payments for investments 790,077,614.00 111,514,548.69
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 940,185,985.29 154,463,505.24
Net cash generated from/used in investing activities 12,802,394.50 -50,712,854.83
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-
controlling interests to subsidiaries
Borrowings received
Cash generated from other financing activities 83,546,936.65
Subtotal of cash generated from financing activities 83,546,936.65
Repayment of borrowings 9,000,000.00
Interest and dividends paid 8,773,914.91 19,444,136.67
Including: Dividends paid by subsidiaries to non-
controlling interests
Cash used in other financing activities 3,102,659.31
Subtotal of cash used in financing activities 8,773,914.91 31,546,795.98
Net cash generated from/used in financing activities -8,773,914.91 52,000,140.67
4. Effect of foreign exchange rates changes on cash and
cash equivalents
5. Net increase in cash and cash equivalents -210,099,769.71 -81,263,553.58
Add: Cash and cash equivalents, beginning of the
810,350,966.05 573,623,529.10
period
6. Cash and cash equivalents, end of the period 600,251,196.34 492,359,975.52
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Changchai Company, Limited Third Quarterly Report 2023
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation
of the New Accounting Standards Implemented since 2023
□ 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.
The Board of Directors
Changchai Company, Limited
28 October 2023
13
