Changchai Company Limited Interim Report 2024
CHANGCHAI COMPANY LIMITED
INTERIM REPORT 2024
August 2024
1Changchai Company Limited Interim Report 2024
Part I Important Notes Table of Contents and Definitions
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.Xie Guozhong the Company’s legal representative and 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.All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as promises to investors. Investors and other stakeholders
shall be sufficiently aware of the risk and shall differentiate between plans/forecasts and
promises.The Company has described in detail the risks it might face in “X Risks Facing the Companyand Countermeasures” in “Part III Management Discussion and Analysis” herein.The Company has no interim dividend plan either in the form of cash or stock.
2Changchai Company Limited Interim Report 2024
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 6
Part III Management Discussion and Analysis..........10
Part IV Corporate Governance.........................27
Part V Environmental and Social Responsibility...... 28
Part VI Significant Events.......................... 31
Part VII Share Changes and Shareholder Information...36
Part VIII Preferred Shares...........................41
Part IX Bonds....................................... 42
Part X Financial Statements..........................43
3Changchai Company Limited Interim Report 2024
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative General
Manager and head of the financial department (accountant in charge).(II) The originals of all the Company’s documents and announcements which were disclosed on the
website designated by the CSRC during the Reporting Period.(III) The Interim Report disclosed in other securities markets.The above-mentioned documents available for reference are all kept in the Secretariat of the Board
of Directors of the Company.This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.
4Changchai Company Limited Interim Report 2024
Definitions
Term Definition
“Changchai” the “Company” or Changchai Company Limited and its consolidated
“we” subsidiaries except where the context otherwise requires
Changchai Benniu Changzhou Changchai Benniu Diesel Engine Fittings Co.Ltd.Changchai Wanzhou Changchai Wanzhou Diesel Engine Co. Ltd.Horizon Investment Changzhou Horizon Investment Co. Ltd.Horizon Agricultural Equipment Changzhou Changchai Horizon Agricultural EquipmentCo. Ltd.Changchai Robin Changzhou Fuji Changchai Robin Gasoline Engine Co.Ltd.Changchai Machinery Jiangsu Changchai Machinery Co. Ltd.Xingsheng Real Estate Management Changzhou Xingsheng Real Estate Management Co. Ltd.Zhenjiang Siyang Zhenjiang Siyang Diesel Engine Manufacturing Co. Ltd.RMB RMB’0000 Expressed in the Chinese currency of Renminbi expressedin tens of thousands of Renminbi
The “Reporting Period” or “CurrentPeriod” The period from 1 January 2024 to 30 June 2024
5Changchai Company Limited Interim Report 2024
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Changchai Changchai-B Stock code 000570 200570
Stock exchange for listing Shenzhen Stock Exchange
Company name in Chinese 常柴股份有限公司
Abbr. (if any) 苏常柴
Company name in English (if
CHANGCHAI COMPANYLIMITED
any)
Abbr. (if any) CHANGCHAI CO.LTD.Legal representative Xie Guozhong
II Contact Information
Board Secretary Securities Representative
Name He Jianjiang
123 Huaide Middle Road
Office address
Changzhou Jiangsu China
Tel. （86）519-68683155
Fax （86）519-86630954
Email address cchjj@changchai.com
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address office address and their zip codes
website address and email address of the Company in the Reporting Period.□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period which can be found in the 2023 Annual
Report.
2. Media for Information Disclosure and Place where this Report is Lodged
Indicate by tick mark whether any change occurred to the information disclosure media and the place for lodging
the Company’s periodic reports in the Reporting Period.□ Applicable √ Not applicable
6Changchai Company Limited Interim Report 2024
The website of the stock exchange media and other websites where the Company’s periodic reports are disclosed
as well as the place for keeping such reports did not change in the Reporting Period. The said information can be
found in the 2023 Annual Report.
3. Other Relevant Information
Indicate by tick mark whether any change occurred to other relevant information in the Reporting Period.□ Applicable √ Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
H1 2024 H1 2023 Change (%)
Operating revenue (RMB) 1495909152.63 1350517639.85 10.77%
Net profit attributable to the listed
50097655.15131937324.66-62.03%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 59846264.97 5825543.98 927.31%
exceptional gains and losses (RMB)
Net cash generated from/used in
-161814513.00-104796816.75——
operating activities (RMB)
Basic earnings per share (RMB/share) 0.0710 0.1870 -62.03%
Diluted earnings per share
0.07100.1870-62.03%
(RMB/share)
Weighted average return on equity (%) 1.47% 3.93% -2.46%
30 June 2024 31 December 2023 Change (%)
Total assets (RMB) 5329179139.07 5159394958.92 3.29%
Equity attributable to the listed
3372290234.403398946911.23-0.78%
company’s shareholders (RMB)
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
7Changchai Company Limited Interim Report 2024
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.VI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses from the disposal of non current
assets (including the offsetting portion of 408245.54
impairment provisions already made for assets)
Government grants recognised in current profit or Government grants recognised in
loss (exclusive of those that are closely related to the current profit or loss were
Company's normal business operations and given in RMB1953702.37 and the
193085.00 amount recognised in current
accordance with defined criteria and in compliance profit or loss that was exclusive of
with government policies and have a continuing deferred income was
impact on the Company's profit or loss) RMB1704864.73.The company received stock
dividends from Jiangsu Bank Co.Ltd. held by the company the
Gain or loss on fair-value changes in financial assets wealth management income
and liabilities held by a non-financial enterprise as generated from cash management
well as on disposal of financial assets and liabilities -18684594.97 and the decrease in the fair valueof the shares held by
(exclusive of the effective portion of hedges that wholly-owned subsidiary Horizon
arise in the Company’s ordinary course of business) Investment in Jiangsu Liance
Electromechanical Technology
Co. Ltd. and Kailong High
Technology Co. Ltd.Non-operating income and expense other than the
803200.60
above
Less: Income tax effects -7709542.20
Non-controlling interests effects (net of tax) 178088.19
Total -9748609.82
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases for 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:
8Changchai Company Limited Interim Report 2024
□ Applicable √ Not applicable
No such cases for the Reporting Period.
9Changchai Company Limited Interim Report 2024
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
1. Industry review
We are a manufacturer of internal combustion engines and fittings in general equipment manufacturing. According
to the classification of fuel used internal combustion engines are mainly divided into diesel engines and gasoline
engines. Our diesel engines and gasoline engines are mainly used in non-road mobile machinery fields such as
harvesters tractors plant protection machinery small engineering machinery and shipborne machinery.In terms of policies the national strategy of "Made in China 2025" has the R&D and industrialization of efficient
internal combustion engines elevated to the national strategic level and new policies on large-scale equipment
renewal and trade-in of consumer goods will further promote the development of market and science and
technology. National regulations pertaining to internal combustion engine technology have considerably tightened
with a notable emphasis on energy conservation emissions reduction and reliability thereby making them focal
points of industrial development. The rigorous enforcement of national emission standards expedites the
development and deployment of core technologies and crucial components within internal combustion engines.The exploration and dissemination of efficient and clean internal combustion engine products drive the
widespread adoption of independent-brand electronic fuel injection systems high-efficiency superchargers and
advanced after-treatment solutions.In recent years the issuance of the No. 1 Document by the central government has underscored its commitment to
elevating the importance of agriculture and bolstering agricultural development. In 2024 the No. 1 Document
outlined a "road map" to vigorously and effectively propel comprehensive rural revitalization. To stimulate
demand through industrial policies it is imperative to enhance the research and application proficiency of
agricultural machinery and equipment promote the innovation framework for cutting-edge agricultural machinery
vigorously address the deficiencies in agricultural machinery and equipment bolster the information-based
capabilities and service provision of agricultural machinery and equipment advance the intelligence and
automation levels of agricultural machinery reinforce the synergy between technology and reform and intensify
efforts in core technology research and development all of which will delineate the trajectory for agricultural
modernization.As a result of the national policy of subsidies for the purchase of machinery industrial development policies and
the impact of environmental regulations and requirements overall market demand for single-cylinder diesel
engines for small agricultural machinery remained low causing intense competition. Despite the gradual increase
in the use of single-cylinder engines in the non-agricultural sectors overall sales volume remained on a downward
path. From the point of view of the development of the industry as a whole the sales of low-quality products
continued to weaken and high-quality products continued to take over more market share which promoted the
sustainable development of the industry as a whole. With the full-scale implementation of National Emission
Standard IV for Non-road Vehicles and the evolving market dynamics the pace of development for high-end
agricultural machinery products in China has accelerated. High-end and intelligent trends of agricultural
machinery catalyzed a fresh wave of structural transformation within the agricultural machinery industry. The
sector has entered a phase of profound adjustments propelled by optimization and upgrading with agricultural
machinery enterprises concurrently embarking on a trajectory of high-quality development hastening the
integration and advancement of advanced technologies encompassing energy conservation and emissions
10Changchai Company Limited Interim Report 2024
reduction intelligent manufacturing and the enhancement of product quality and efficiency. As new opportunities
for development arise in the national strategic deployment and the accelerated transformation and upgrading
process the agricultural machinery market has a broad space for growth.
2. Principal Operations of the Company
We mainly specialize in the R&D manufacture and sales of diesel engines under the brand "Changchai" and
gasoline engines under the brand "Robin". Our products are mainly used in agricultural machinery small
engineering machinery generator sets and shipborne machinery and other fields closely related to people's
livelihood.In the Reporting Period there were no major changes in the Company's core business and main products.
3. Main Products of the Company
Our main products are divided into two categories: diesel engines and gasoline engines. The details are as follows:
Main
Product Application
produc Graphic display Product description
features fields
ts
Our diesel engine products include
single-cylinder diesel engines and High power low Agricultural
multi-cylinder engines covering oil consumption machinery
power range from 3kW to 129kW low noise construction
Diesel
and cylinder diameters from 65mm compact machinery
engine
to 135mm. Besides sale in domestic structure low generator sets
market our diesel engines are sold emission good shipborne
to Southeast Asia South America reliability machinery
the Middle East and Africa.Our gasoline engines are mainly
general-purpose small gasoline
engines covering the power range Agricultural
Simple structure
Gasolin from 1.5kW to 9.0kW. Besides sale machinery
good reliability
e in domestic market our gasoline small
easy
engine engines are sold to Southeast Asia construction
maintenance
the Middle East Europe and machinery
America Africa Japan and other
countries and regions.
4. Major Business Models
(1) R&D model
We have established an innovative technology management system for internal combustion engine based on
market demand and forward-looking technologies. Prior to the new products or new technologies development
the marketing department first conducts market assessment and customer research and then initiates a project
according to the forecasted market demand; the technology department conducts development according to the
project materials and collects feedback information from the market and customers in real time during the
development process to ensure technology leadership and product suitability.
(2) Purchasing model
We adopt the "purchase-to-order" purchasing model. The ERP system converts the sales orders the sales plan and
the production plans into the demand of parts needed and the purchasing department organizes the purchase
11Changchai Company Limited Interim Report 2024
according to such demand. Meanwhile the purchasing department makes a plan to guide parts procurement
according to the sales plan and provide it to the supplier and urge the supplier to prepare for the goods.
(3) Production model
We adopt the "make-to-order" production management model. The sales department makes sales plans for
different stages according to the orders in hand sales data in previous years market demand judgment and
feedback of existing customers' purchasing intentions. The Company's production department makes the
production plan according to the sales orders displayed in the ERP system the sales plan and the reserve inventory
demand and organizes the production task in strict accordance with the plan. During the production process the
quality assurance department arranges regular inspection to ensure the product quality.
(4) Sale model
We adopt the sales model of "direct selling + distribution" i.e. the direct selling model for the main engine factory
and the distribution model for the individual circulation market represented by farmers and overseas market.
5. The Company's position in the market
We mainly specialize in the R&D manufacture and sales of diesel engines under the brand "Changchai" and
gasoline engines under the brand "Robin". Up to now we have successfully developed a number of advanced core
technologies with independent intellectual property rights. In terms of diesel engine according to the statistics of
China Internal Combustion Engine Industry Association (CICEIA) as the largest small- and medium-sized
single-cylinder diesel engine manufacturer in the agricultural machinery industry of China we have maintained a
high market share of single-cylinder engines and our market share of single-cylinder diesel engines of some
power ranges has ranked first in China. For many years in the process of achieving steady economic development
of the enterprise we developed in a sound manner and cultivated the "Changchai" brand a famous small diesel
engine brand of China with independent intellectual property rights.
6. Key Performance Drivers
(1) National policy driver
In recent years the No. 1 Document issued by the central government has demonstrated the government's
intention to attach greater importance to agriculture and strengthen agricultural development so as to promote the
development of agriculture and rural economy and society and strengthen the support of agricultural technology
and equipment. China's agricultural machinery and equipment industry layout has always been based on the main
line of innovation focused on core technology strengthened the construction of innovation capacity and strove to
make up for the shortcomings and weaknesses. The full implementation of National Emission Standard IV and the
high-end and intelligent trends of agricultural machinery have let the agricultural machinery industry towards a
new stage of development. The Action Plan for Promoting Large-scale Equipment Renewals and Consumer
Goods Trade-ins in 2024 clarifies that old agricultural and industrial machinery will be renewed subsidy policies
will be continuously implemented for agricultural machinery scrapping and renewal the scrapping and renewal of
old agricultural machinery will be promoted and the structural adjustment of agricultural machinery will be
accelerated. The acceleration of the replacement process of old equipment of engineering machinery has created a
favourable policy environment for the application of internal combustion engines.
(2) Industrial chain synergy empowers the sustainable development of the Company
We have built our own casting manufacturing and processing plants to meet the use requirements of some diesel
engine parts. In terms of production and quality we have formed a significant synergy with our own internal
combustion engine assembly department. Our casting manufacturing department and internal combustion engine
assembly department work together to form a mutually reinforcing positive feedback loop to assist the Company
in integrating the internal combustion engine industry chain and building differentiated industry barriers. In terms
of collaborative production the reduction of external purchase is of great significance for the Company to reduce
12Changchai Company Limited Interim Report 2024
process flow reduce intermediate loss improve production efficiency shorten delivery time and increase
purchasing bargaining power. In terms of quality coordination the self-built foundry can improve our quality
control of parts to improve the yield and reliability of internal combustion engines.
(3) Stable and efficient R&D team
We have experienced technical management team and perfect technical support team. Our key technical personnel
and R&D management personnel have been engaged in internal combustion engine R&D design production and
manufacturing for a long time. With profound professional knowledge and rich practical experience they can
make strong forward-looking and scientific judgment in the market direction and technical route. Also we have
established an effective training mechanism to foster talented persons for the follow-up R&D.
(4) Well-known brand with many well-known customers
The Company formerly known as Changzhou Diesel Engine Factory is a national industrial enterprise with a
history of a hundred years and one of the earliest professional internal combustion engine manufacturers in China.Our diesel and gasoline engines as power sources of agricultural machinery and construction machinery show
excellent performance in power range reliability power per litre noise control and emission standards and have
been recognized by customers. We maintained a long-term partnership with major customers with cumulative
partnership time exceeding 15 years. Many main engine plant customers of the Company are well-known
enterprises in the agricultural machinery industry with their market shares being at the forefront of the market.
7. Performance of the Company's Principal Operations in the Reporting Period
In the first half of 2024 the macro economy maintained a moderate recovery and steady progress overall. The
joint influence of such factors as the full entry of products that meet the National Emission Standard IV into the
market the decline in operating income and the adjustment of subsidies made market competition increasingly
fierce and therefore the traditional agricultural machinery industry is slowing down. Meanwhile new market and
industry segments maintained growth momentum accompanied by the increasing demand for high-end products
and the transformation of the agricultural machinery industry towards high-quality development. Centring around
its annual policies and objectives the Company as a whole focused on core areas such as product market and
quality and responded to challenges through precise strategies thus achieving steady growth of the main business.During the Reporting Period the Company sold approximately 325400 diesel engines gasoline engines and
generator sets generating total sales revenue of RMB1496 million an increase of 10.77% year on year.In terms of product development and application the Company intensified efforts on the development and
application of light engines in segmented fields completed the supporting road test for CC12 diesel engine for
three-wheeled motorcycle and made steady progress in the installation and application as well as testing and
verification of multi-cylinder products that meet the National Emission Standard IV for Non-road Vehicles and
terminal products of main engine plant customers. The Company also upgraded the product post-processing
configuration and completed the market verification and emission certification test to effectively improve the
emission reduction capacity of products and continuously develop green power. The Company constantly
improved the assembly and power performance of outboard engines promoted the completion of installation
debugging and market application for products of multiple power ranges and obtained ship inspection certificate
for D25 outboard engines and exported them overseas.In terms of sales and services the Company strengthened channel management for single-cylinder engines and
consolidated the market application share of single-cylinder engines in the industrial cluster. In terms of
multi-cylinder engines the Company intensified the collaboration efforts at the terminal market consolidated
market application share in traditional advantageous fields and expanded the incremental market of harvesting
machinery. Moreover the Company further boosted market development in non-agricultural fields with its
intelligent integrated charging stations successfully entering the flight defence market already. Additionally
13Changchai Company Limited Interim Report 2024
foreign trade sales jumped in emerging markets. The Company also continuously optimized the allocation of
service resources strengthened service collaboration and completed various market service tasks during busy
agricultural periods while increasing the publicity by new media to improve the visibility and quality of
marketing.In terms of quality management the Company continuously optimized the quality system strengthened quality
control and strictly controlled the product inspection and production processes. Moreover the Company actively
responded to market feedback further managed the stabilization and enhancement of the supply chain and
improved the quality level of products through precise measures.In terms of internal management the Company comprehensively improved the establishment of the internal
control system and took multiple measures to reduce costs and improve the Company's operating efficiency and
governance level. Moreover the Company further improved its assessment and incentive mechanism and
strengthened the introduction and cultivation of talents and the building of cadre team to forge a talent team well
adapting to the development of the Company. The Company also carried out safe production activities and fire
security drills organized various cultural and sports activities worked to create a safe stable and cohesive work
environment and corporate atmosphere while strengthening the publicity of corporate image and products through
multiple channels to enhance the Company's brand influence.During the Reporting Period the Company obtained 25% equity of Horizon Agricultural Equipment originally
held by Horizon Investment enabling it to directly hold 100% equity of Horizon Agricultural Equipment. As of
the end of the Reporting Period the Company had received a total of RMB117 million in compensation for
housing expropriation from Wuxing Branch and RMB30 million in the first phase of compensation for housing
expropriation from Sanjing Branch.II Core Competitiveness Analysis
1. Advantages in Brand
Changchai is a national industrial enterprise with a history of over one hundred years. It is one of the earliest
professional manufacturers of internal combustion engines in China. The brand "Changchai" is the earliest
domestic trademark of production goods known as China's well-known trademarks. The diesel engine of
"Changchai" brand is China's brand-name product. The enterprise has been certified by ISO9001 and IATF16949
quality systems ISO14001 environmental management system IATF16949 automotive product quality
management system and accessed to the national export-free enterprise qualification. Changchai was honorably
ranked among “the Top One Hundred Chinese Enterprises in Engineering Industry” and “China PacesetterEnterprise of Industrial Industry” for several times and was awarded the honorary title of “State-level Enterpriseof Observing Contracts and Keeping Promise” “China's Agricultural Machinery Parts and Components LeadingEnterprises” “China's Agricultural Machinery AAA Credit Enterprise” “Quality Management Excellence Awardof Jiangsu Province” and “Mayor Quality Award of Changzhou City”. The Company has been among the 10 users’
most satisfied leading brands in “Jing Geng” competition for many years. During the Reporting Period the
Company was awarded the titles of National Demonstration Enterprise of Product and Service Quality Integrity
Large Key Outstanding Enterprise in the Chinese Mechanical Industry Excellent Brand in the Agricultural
Machinery Equipment Industry of Jiangsu Province etc. For many years in the process of achieving steady
economic development of the enterprise we developed in a sound manner and cultivated the “Changchai” brand
a famous small diesel engine brand of China with independent intellectual property rights.
2. Advantages in Technology
The Company has a state-level technology center and post-doctoral research station and a research center of small
14Changchai Company Limited Interim Report 2024
and medium-power internal combustion engine engineering and technology in Jiangsu Province. Currently it is
mainly engaged in production of small and medium-power single-cylinder and multi-cylinder diesel engine. It has
a complete product range a wide power level coverage a high reputation and intellectual property rights for its
main products. During the Reporting Period the Company applied for and obtained 12 patents accepted by the
China National Intellectual Property Administration and obtained 11 patent authorizations.As of 30 June 2024
the Company had a total of 164 domestic and foreign patents including 17 invention patents.
3. Advantages in Marketing
Changchai has built up a sales service network covering the whole country with 24 sales service centers and 716
designated maintenance stations. In addition in order to meet the National Emission Standard IV for Non-Road
Vehicles and provide better after-sales service for customers a service monitoring platform with Changchai
characteristics has been put in place. With a perfect diesel sales service network system the Company is able to
provide high quality efficient and timely services for customers.III Core Business Analysis
Overview
See contents under the heading “I Principal Activity of the Company in the Reporting Period”.Year-on-year changes in key financial data:
Unit: RMB
Main reason for
H1 2024 H1 2023 Change (%)
change
Operating revenue 1495909152.63 1350517639.85 10.77%
Cost of sales 1247104070.05 1168898203.83 6.69%
Selling expense 62703122.61 62131032.17 0.92%
Administrative expense 53480629.46 52877371.06 1.14%
Increased interest
income and
Finance costs -8614351.66 -4976652.95 —— decreased interest
expenses in the
Reporting Period
Decreased fair value
of held-for-trading
financial assets of
wholly-owned
subsidiary Horizon
Income tax expense 4314671.32 7189328.33 -39.99% Investment in the
Reporting Period
resulting in a
corresponding
decrease in deferred
income tax liabilities
R&D investments 38765247.04 35839071.42 8.16%
Net cash generated
from/used in operating -161814513.00 -104796816.75 ——
activities
15Changchai Company Limited Interim Report 2024
The main reason is
that the net cash
Net cash generated received from the
from/used in investing -132707275.04 -45360077.56 company's—— investment recovery
activities in the current period
decreased
year-on-year.Net cash generated The increased 2023
from/used in financing -33167547.83 -8886489.92 —— final dividend
activities payout
Net increase in cash and
-327689335.87-159043384.23——
cash equivalents
Significant changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
H1 2024 H1 2023
As % of total As % of total
Operating Change (%)
operating Operating revenue operating
revenue
revenue (%) revenue (%)
Total 1495909152.63 100% 1350517639.85 100% 10.77%
By operating division
Internal
combustion 1477768073.74 98.79% 1333099509.22 98.71% 10.85%
engines
Other 18141078.89 1.21% 17418130.63 1.29% 4.15%
By product category
Diesel engines 1397237787.65 93.40% 1246906709.16 92.33% 12.06%
Gasoline
62093594.554.15%82791314.556.13%-25.00%
engines
Other 36577770.43 2.45% 20819616.14 1.54% 75.69%
By operating segment
Domestic 1339807981.05 89.56% 1114906055.18 82.55% 20.17%
Overseas 156101171.58 10.44% 235611584.67 17.45% -33.75%
Operating division product category or operating segment contributing over 10% of operating revenue or
operating profit:
√ Applicable □ Not applicable
Unit: RMB
16Changchai Company Limited Interim Report 2024
YoY
YoY
change in
Gross change in YoY change
gross
Operating revenue Cost of sales profit operating in cost of
profit
margin revenue sales (%)
margin
(%)
(%)
By operating division
Internal
combustion 1477768073.74 1232962844.33 16.57% 10.85% 6.62% 3.32%
engines
By product category
Diesel engines 1397237787.65 1163197030.40 16.75% 12.06% 7.13% 3.83%
Gasoline
62093594.5552444200.0815.54%-25.00%-21.78%-3.48%
engines
By operating segment
Domestic 1339807981.05 1098121111.89 18.04% 20.17% 16.83% 2.34%
Overseas 156101171.58 148982958.16 4.56% -33.75% -34.94% 1.75%
Core business data of the prior period restated according to the changed statistical caliber for the Reporting
Period:
□ Applicable √ Not applicable
IV Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of grossprofit Main reason/source
Recurrent
or not
Return on 14299040.62 24.53% Stock dividends and income frominvestment cash management Yes
Decrease in the fair value of the
shares held by wholly-owned
Gains/losses on subsidiary Horizon Investment in
changes in fair -34487453.74 -59.17% Jiangsu Liance Electromechanical No
value Technology Co. Ltd. and
Kailong High Technology Co.Ltd.Asset impairment -359995.80 -0.62% Inventory valuation losses for theloss current period No
Non-operating
income 1070935.19 1.84%
Amounts that required no
payment No
Non-operating
expense 267734.59 0.46% Compensation matters No
17Changchai Company Limited Interim Report 2024
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2024 31 December 2023 Change
As % of As % of in Reason for any
Amount total Amount total percent significant change
assets assets age (%)
The main reason is
that during the
reporting period the
company increased
its market expansion
efforts moderately
Monetary extended credit
791920099.9014.86%1083867966.8721.01%-6.15%
assets reduced fund
recovery and
increased unexpired
wealth management
at the end of the
period compared to
the beginning.Most of the
Company’s
multi-cylinder diesel
engine customers are
supporting
companies of main
engine which are
Accounts 1183949152. usually given longer
56 22.22% 316543159.91 6.14% 16.08%receivable payment days and the
Company properly
allowed customers’
buying on credit to
step up efforts to
expand the market
due to the product
emission upgrading.Product sales
Inventories 619715018.92 11.63% 789220185.68 15.30% -3.67% increased in the
Reporting Period
reducing diesel
18Changchai Company Limited Interim Report 2024
engine stocks
Investment
38789201.330.73%39837558.110.77%-0.04%
property
Fixed assets 637435729.73 11.96% 675596920.95 13.09% -1.13%
Construction
4330676.580.08%4275622.180.08%0.00%
in progress
Contract
liabilities 37517411.19 0.70% 33352877.66 0.65% 0.05%
2. MajorAssets Overseas
□ Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss Impairme
Cumulati
on nt
ve Purchase Sold in
fair-value allowance
Beginnin fair-value d in the the Other Ending
Item changes made in
g amount changes Reporting Reporting changes amount
in the the
through Period Period
Reporting Reporting
equity
Period Period
Financia
l assets
Held-for
-trading
financial
assets
(exclusi 2256414 -344874 5980443 3862975 4029007
ve of 29.94 53.74 24.00 16.67 83.53
derivati
ve
financial
assets)
Investm
ents in
other 9694880 -520440 9174440
equity 25.67 00.00 25.67
instrume
nts
19Changchai Company Limited Interim Report 2024
Subtotal
of 1195129 -344874 -520440 5980443 3862975 1320344
financial 455.61 53.74 00.00 24.00 16.67 809.20
assets
41291454129145
Others
76.8076.80
Total of
1608044-344874-520440598044338629751733259
the
032.4153.7400.0024.0016.67386.00
above
Financia
l
0.000.00
liabilitie
s
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
4. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying Type of
amount restriction Reason for restriction
Monetary assets-other monet Security deposi Security deposits associated with ba
ary assets 108979912.31 ts nk acceptance notes environment etc.Fixed assets-buildings and c As collateral for the issue of bank
onstructions 1245851.51 As collateral acceptance note
Intangible assets-land use rig As collateral for the issue of bank
hts 828429.65 As collateral acceptance note
Fixed assets-plant and equip As collateral for the issue of bank
ment 21597853.38 As collateral acceptance note
Payment obliga
Notes receivable-transferred 46144123.81 tion of transfer Endorsed at the period-end and undundue notes red undue note ue at the balance sheet date
s
Total 178796170.66
VI Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
20Changchai Company Limited Interim Report 2024
2. Major Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/ Accu
loss mula
Initia Acco Begi on ted Purc Gain/
Varie Code Nam untin nnin fair fair hase Sold Endil g g value value d in in the
loss ng Acco Fund
ty of of e of inves meas carry chan chan the Repo
in the untin ing
urem Repo
carry
secur secur secur
tmen ing
ges ges Repo rting rting ing g sourc
ity ity ity ent amou in the recor rting Periometh Repo ded Perio d Perio
amou
t cost nt d nt
title e
od rting in d
Perio equit
d y
Inves
tmen
Dom t in
Foto Fair
estic/ 4178 3944 2833 3251 other Self-6001 n valueforei 66 4000 8500 0.00 4100 0.00 0.00 0.00 2500 equit fundMoto meth
gn .00 0.00 0.00 0.00 y ed
r od
stock instr
umen
ts
Inves
tmen
Dom t in
Bank Fair
estic/ 4278 1565 1310 1099 1738 other Self-6009 of valueforei 19 6000 4600 0.00 7600 0.00 0.00 8000 6200 equit fundJiang meth
gn .00 0.00 0.00 .00 0.00 y ed
su od
stock instr
umen
ts
21Changchai Company Limited Interim Report 2024
Kailo Held
Dom
ng Fair -for-t
estic/ 2000 1811 -869 -869 9427 radin Self-3009 High valueforei 12 1268 9861 2704 0.00 0.00 0.00 2704 157.g fund
Tech
gn .00
meth finan.00.00.0000
nolo od cial
ed
stock asset
gy s
Held
Dom Lian
Fair -for-t
estic/ ce 7200 6687 -260 -255 4085 radin Self-
forei 6881
value
13 Tech 000. 3600 2080 0.00 0.00 0.00 1104 2800
g fund
gn nolo 00
meth finan.000.000.00.00
od cial
ed
stock gy asset
s
Held
Dom
Fair -for-t
estic/ Lanti radin Self-
6053 1607 value 3015 8036 1041 3819forei 68 an 44.76 0.00 0.00 0.00
g fund
meth 60.00 0.00 60.00 20.00 finan
gn Gas cial edod
stock asset
s
11196363-3466363-3464144
Total 3201 -- 2602 3314 2602 3314 1700 0.00 0.00 -- --
2.761.004.001.004.000.00
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
The company did not sell any significant assets during the reporting period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
22Changchai Company Limited Interim Report 2024
VIII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Relatio
nship
with Principal Registere Total Net Operatin Operating Net
Name
the activity d capital assets assets g revenue profit profit
Compa
ny
Production
Changchai Subsidi of diesel 550630 138725 744905 939793 -209058 -228003
Benniu ary engine 00.00 393.72 66.21 98.35 1.28 5.78
accessories
Diesel
Changchai Subsidi 850000 637956 506157 204368 478583.1 487315.engine
Wanzhou ary 00.00 71.65 13.75 38.02 6 76
assembly
External
Horizon Subsidi investment 400000 739398 664098 -338718 -252136
0.00
Investment ary and 00.00 16.90 33.86 89.89 03.89
consulting
agricultural
Horizon machinery
Agricultura Subsidi product of 100000 280558 -165992 104807. -596197. -596197.l ary rice 00.00 1.03 75.23 44 60 60
Equipment transplanter
etc.Gasoline
Changchai Subsidi 372500 116554 105839 620935 4697318 399141
engines
Robin ary 00.00 160.63 591.10 94.55 .55 3.01
assembly
Internal
combustion
Changchai Subsidi 300000 626470 213155 436624 -473308 -473308
engine and
Machinery ary 000.00 766.42 707.67 877.22 6.59 5.60
related
accessories
Xingsheng
Real estate
Real Estate Subsidi 100000 325176 196217 219984 516159.1 503077.manageme
Manageme ary 0.00 3.76 9.66 4.85 8 63
nt service
nt
23Changchai Company Limited Interim Report 2024
Manufactur
ing and
Zhenjiang Subsidi marketing 200000 118285 106904 402122 6973269 629495
Siyang ary of diesel 0.00 307.51 458.52 71.49 .63 4.12
engines for
ships
Subsidiaries obtained or disposed of in the Reporting Period:
□ Applicable √ Not applicable
Other information about principal subsidiaries and joint stock companies:
1. The Company holds a total of 49% equity interests in Zhenjiang Siyang making it the largest shareholder.
Other shareholders are dispersed. The Company appointed four out of the seven members of Zhenjiang Siyang's
Board of Directors including the Chairman. Therefore the Company is the actual controller of Zhenjiang Siyang
which constitutes the conditions for the consolidation.
2. In June 2024 the Company acquired 25% of the equity interest in Horizon Agricultural Equipment held by
Horizon Investment and the Company now directly holds 100% of the equity interest in Horizon Agricultural
Equipment.IX Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
(1) Market risk
Under the influence of national policies on subsidies for the purchase of machinery industrial development
policies and environmental regulations and requirements the market performance of traditional categories has
declined and the competition in the existing markets has intensified. With the development of high-end intelligent
agricultural machinery the agricultural machinery industry has entered a period of in-depth adjustments led by
optimization and upgrading. Most enterprises have continuously strengthened product development and
optimization and increased market maintenance and development efforts in response to market demand.Meanwhile the products that meet the National Emission Standard IV have fully entered the market further
intensifying industry competition.Countermeasures: First the Company will keep up with the policy orientation and optimize product structure.Second the Company will precisely position marketing with a focus on market demand. Third the Company will
strengthen internal management and improve operating efficiency. Fourth the Company will pay attention to
talent cultivation and stimulate the vitality of innovation. Fifth the Company will enhance risk prevention and
control to ensure steady development.
(2) Industrial risk
In recent years influenced by the development of new energy application technology and relevant policy
incentives various enterprises have accelerated their research application and market application in the field of
new energy power so the market share of application fields related to diesel engines has been affected to a certain
extent. At present new energy power still faces challenges such as high costs and complex operating
24Changchai Company Limited Interim Report 2024
environments in the field of agricultural machinery. However with the continuous breakthrough of new energy
technology some application scenarios of non-road diesel engines may be replaced by new energy power.Countermeasures: First the Company will develop products that meet the national policies on energy conservation
and emission reduction optimize and upgrade product lines according to market demand improve product
competitiveness and stabilize market advantages. Second the Company will accelerate the R&D of new energy
power and expand the fields of new energy hybrid products and application thereof to promote the sustainable
development of the Company.
(3) Foreign trade risk
In recent years the international situation has become increasingly complicated. The Russia-Ukraine conflict and
the Palestinian-Israeli conflict have intensified the fragmentation of the global camp bringing serious negative
impacts on regional politics and security world economic recovery food and energy security ecological
environment and many other aspects while affecting the foreign trade policies of various countries to varying
degrees. If there are significant changes in the political stability and foreign trade policies of foreign markets it
will have a significant impact on product export sales.Countermeasures: First the Company will enhance overall foreign trade efficiency through complementary
internal and external resources information and products. Second the Company will innovate and transform
products in combination with overseas market demand and promote more high-performance products in new
fields to overseas markets. Third the Company will cultivate and develop key markets establish a sound sales and
service network in export markets and strengthen service development in overseas markets.
(4) Foreign exchange risk
In recent years the challenges and uncertainties in the international political and economic environment have
increased leading to an increase in exchange rate fluctuation factors. The Company's products are exported
overseas and exchange rate fluctuations may have adverse effects on the sales of the Company's products.Countermeasures: First the Company will closely monitor exchange rate fluctuations choose appropriate
currencies for pricing and settlement. It will reduce risks by changing payment methods and purchasing export
credit insurance. Second the Company will adjust product prices and payment terms in a timely manner in
response to fluctuations in exchange rates and material prices. Third the Company will enhance the
competitiveness of products and services to reduce the impact of exchange rate fluctuations on the Company's
product sales.
(5) Risk of fluctuations in raw material prices
The market prices of raw materials often fluctuate influenced by factors such as macroeconomic environment
production capacity and changes in demand. The price fluctuations of raw materials such as steel and pig iron will
bring pressure to the Company's manufacturing costs and have a certain impact on the Company's profits.Countermeasures: First the Company will improve production and operation efficiency through measures such as
technological improvement and strengthening cost management. Second it will optimize the supply system and
strengthen supply chain management. Third the Company will timely track market trends and strengthen
inventory management to alleviate the adverse effects of raw material price fluctuations on the Company.
(6) Talent risk
Talent is one of the key factors for the development of the Company. The Company needs talent to help improve
operational efficiency and accelerate its development and building. If the Company's remuneration policies and
talent incentive and constraint policies are inadequate it will lead to a shortage of high-end leading management
and technical talents and a shortage of reserve talents which will affect research and innovation capabilities and
core competitiveness.Countermeasures: First based on the Company's development plan and actual needs of business management the
25Changchai Company Limited Interim Report 2024
Company will continuously improve the talent introduction mechanism and talent cultivation system optimize
personnel structure and comprehensively enhance the overall quality of the employee team. Second the
Company will continuously improve the professional abilities of employees through systematic training and other
measures based on business development needs. Third the Company will improve talent incentive methods and
performance appraisal systems and accelerate the development of young leadership talent to comprehensively
enhance the contribution rate of human resources. Fourth The Company will strengthen the construction of the
staff congress system and trade union services to create a harmonious development environment and enhance
employees' sense of belonging and happiness.XI Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.□ Yes √ No
26Changchai Company Limited Interim Report 2024
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor Index to
Date of the Date of
Meeting Type participati disclosed
meeting disclosure
on ratio information
All proposals
were approved.See
The 2023 Annual Annual general
meeting 32.34% 8 May 2024 9 May 2024
Announcement
General Meeting No. 2024-016 on
Resolutions of
the 2023 Annual
General Meeting.
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
II Change of Directors Supervisors and Senior Management
□ Applicable √ Not applicable
The Company’s directors supervisors and senior management remained the same during the Reporting Period
information of which can be found in the 2023 Annual Report.III Interim Dividend Plan
□ Applicable √ Not applicable
The Company has no interim dividend plan either in the form of cash or stock.IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
27Changchai Company Limited Interim Report 2024
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries was identified as a key polluter by the
environment authorities.□ Yes √ No
Administrative punishments received in the Reporting Period due to environmental issues:
Not applicable.Other environmental information with reference to a key polluter:
Neither the Company nor any of its subsidiaries is a key polluter identified by the environment authorities. They
strictly observe applicable laws and regulations associated with environmental protection in production and
operation including Law of the People's Republic of China on Environmental Protection Law of the People's
Republic of China on Prevention and Control of Water Pollution Law of the People's Republic of China on
Prevention and Control of Air Pollution Law of the People's Republic of China on Prevention and Control of
Environmental Noise Pollution and Law of the People's Republic of China on Prevention and Control of Solid
Waste Pollution. They pay environmental protection tax in accordance with the law without receiving any penalty
for violation of such laws or regulations during the Reporting Period.Actions taken during the Reporting Period to reduce carbon emissions and the impact:
□ Applicable √ Not applicable
Reasons for not disclosing other environment-related information:
The production and operation of the Company and its subsidiaries are in strict compliance with China’s applicable
laws and regulations and the Company will continue to strengthen the supervision and management of
environmental protection to ensure that the development of the Company is in line with environmental protection
policies and regulations.II Social Responsibility
During the Reporting Period the Company attached importance to and actively fulfilled its social responsibilities.Adhering to the core values of "Customer First Employee Oriented Enhancing Shareholder Returns and
Creating Value for Society" and taking "Providing Green Power for a Better Life" as its mission the Company
insisted on integrity management paid taxes according to law and constantly enhanced the capability of
self-development to achieve sustainable development. The Company strove to safeguard the legitimate rights and
interests of shareholders employees customers suppliers and consumers pursued harmonious development
between the Company and society and actively gave back to society.In accordance with the requirements of the Company Law the Securities Law the Code of Corporate Governance
for Listed Companies the Listing Rules of Shenzhen Stock Exchange other relevant laws and regulations and the
Articles of Association the Company standardized its operation and formed an internal management and control
policy system in which the Shareholders' General Meeting the Board of Directors and the Supervisory Committee
restrict each other and operate effectively. According to the internal control policy system the Company defined
the responsibilities and authorities for parties in charge of decision-making execution and supervision effectively
28Changchai Company Limited Interim Report 2024
divided responsibilities and formed a balance mechanism and continuously improved the standardized operation
level of the Company.(I) Protection of the rights and interests of investors: The Company has exercised its functions and powers in strict
accordance with relevant laws and regulations to effectively protect the rights and interests of all shareholders. In
the Reporting Period the Company conducted an online results presentation of Annual Report 2023 earnestly
organized the management of investors communicated with shareholders effectively and treated all shareholders
fairly. The Company completed the payment of the 2023 final dividend of RMB33.1675 million during the
Reporting Period. The Company's total cash dividend amount in the last three years accounted for 60.97% of the
average annual net profit in the last three years exceeding the dividend commitment. The Company's information
disclosure is legal and compliant and the content disclosed is true accurate and complete to safeguard
shareholders' right to know and provide investors with a sufficient investment basis. The Company attaches great
importance to the management of insider information. In the Reporting Period there was no insider trading or
damage to the interests of shareholders.(II) Protection of creditors' equity: The Company established a systematic internal control system that covers
financial management investment management financing management asset management fund management
accounting management and current account management. Moreover prudent financial management plan was
implemented accounting supervision was conducted in accordance with the law and the Company's assets were
effectively utilized to improve the Company's economic benefits and ensure the security of the Company's assets
and funds effectively. The Company upheld the concept of integrity service followed the principle of winning
trust through integrity and establishing reputation through trust continuously improved the management level of
corporate credit and constantly enhanced the core competitiveness and sustainable development capability of the
Company with higher credibility and better service.(III) Protection of the rights and interests of clients and consumers. The Company has built a nationwide sales and
service network in China. To meet the emission requirements of the National Emission Standard IV for Non-road
Vehicles and provide customers with more accurate after-sales services the Company has specially developed a
service monitoring platform with Changchai characteristics. The Company has established a sound long-term
partnership with customers is committed to providing customers with high-quality efficient and timely services
and has been recognized and honoured by many customers and quality suppliers. In recent years the Company
has gradually improved its market service satisfaction and repeatedly won the honorary title of National Model
Enterprise for Trustworthy Product and Service Quality. As a quality supplier for a number of main engine plants
the Company has won the recognition of clients and customers with high-quality products and services.(IV) Protection of suppliers’ rights and interests: The Company enhanced supplier management while observing
the Contract on the Application and Procurement of Parts and the Quality Assurance Agreement for Suppliers
optimized the capacity and supply allocation for parts intensified inventory and plan management and paid
suppliers for the goods promptly pursuant to the contracts. According to the assessment results and actual supply
situation the Company constantly has adjusted and optimized its supply system and supported the technology
growth and progress of suppliers in an effort to create a virtuous cycle of supply relations.(V) Protection of employees' rights and interests: The Company upholds the people-oriented concept in talent
management. Specifically the Company paid attention to the comprehensive ability improvement and personal
career development of employees and improved and developed employees' abilities by combining theory and
practice. The Company has made considerate arrangements for employees including festive perks health
check-ups medical recuperation benefits provided through the labor union service cards assistance to employees
in need and other philanthropic initiatives. The Company actively improved the working environment of
employees and properly monitored employees' health to effectively guarantee the occupational safety and health
29Changchai Company Limited Interim Report 2024
of employees. The Company has strictly observed the Labor Law and the Labor Contract Law protected the
legitimate rights and interests of employees according to law properly addressed reasonable needs of employees
and built harmonious and stable relations between employees and employer. The Company has also provided
employees with a variety of learning training and promotion channels so as to improve the abilities of employees
and enable them to grow together with the Company.(VI) Safe production. The Company strictly implemented the new Work Safety Law of the People's Republic of
China and to build a safe Changchai fully implemented policies and emergency response mechanisms for
security protection and fire safety. Moreover the Company did well in public security and fire control with fire
safety training being conducted for 146 people and six fire drills organized. The Company also strengthened the
safety education of employees so as to improve their self-prevention ability in case of emergency in their daily
work and their comprehensive ability to deal with emergencies in such aspects as safety fire control occupational
health and equipment.(VII) Environmental protection and sustainable development. The Company actively implemented the concept of
scientific development and green development and with a high sense of responsibility to the society and
following the environmental protection principle of efficiency enhancement consumption reduction energy
saving and pollution reduction actively took measures to reduce energy consumption and pollution emissions
thus maintaining a beautiful living environment and promoting the Company's sustainable development. The
Company's activities such as production and operation product design and after-sales service were all in strict
compliance with the "PDCA" principle for continuous improvement and efforts were made to maintain the
effective operation of the new version of the new ISO14001 Environmental management systems.(VIII) Social welfare. The Youth League Committee of the Company organised youths from all branches to carry
out the activity of charity sale of used items with the theme of “Recycle Pass on Love and Raise Hope” and the
money gained from the charity sale was used to buy stationery supplies and give them to the students of
Changchai Hope Primary School. The young people of the Company inherited the spirit of Lei Feng with practical
actions and fostered the outlook on life and values of caring for others dedication solidarity and helping each
other.Centring around its operational policy the Company actively promoted the R&D production and application of
high-quality environmental protection products to serve the development of agriculture rural areas and farmers
while improving the energy efficiency and protecting the environment. Meanwhile in combination with its
realities the Company increased support in social welfare undertakings and earnestly fulfilled its social
responsibility to promote the coordinated and sustainable development of society economy and environment.
30Changchai Company Limited Interim Report 2024
Part VI Significant Events
I Commitments of the Company’s De Facto Controller Shareholders Related Parties and
Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting Period
or Ongoing at the Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.II 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.III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited
□ Yes √ No
The interim financial statements are unaudited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's“Modified Opinion”on the Financial Statements of the Reporting
Period
□ Applicable √ Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable √ Not applicable
VII Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
31Changchai Company Limited Interim Report 2024
VIII Legal Matters
Significant lawsuits and arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
√ Applicable □ Not applicable
The de facto controller of the Company is SASAC of Changzhou People’s Government and the controlling
shareholder of it is Changzhou Investment Group Co. Ltd. There is no such case that the controlling shareholder
fails to perform any legally effective judgment of courts or to pay off matured debts with a large amount.XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
32Changchai Company Limited Interim Report 2024
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in any other finance
business with any related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make deposits receive loans or credit from and was not
involved in any other finance business with any related parties.
7. Other Major Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.XII Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
33Changchai Company Limited Interim Report 2024
Unit: RMB’0000
Impairment
Type Funding source Amount Undue amount Unrecovered allowance foroverdue amount unrecovered
overdue amount
Broker financial
products Self-funded 5924.43 3924.43 0.00 0.00
Bank financial
products Self-funded 31275.00 31200.00 0.00 0.00
Total 37199.43 35124.43 0.00 0.00
High-risk wealth management transactions with a significant single amount or with low security low liquidity:
□ Applicable √ Not applicable
Situation where the principal is expectedly irrecoverable or impairment may be incurred:
□ Applicable √ Not applicable
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIII Other Significant Events
√ Applicable □ Not applicable
1. Expropriation of the Wuxing branch company’s properties on state-owned land and compensation
On 25 May 2023 the Proposal on the Intention to Sign the Agreement on the Expropriation of the Properties of
the Wuxing Branch Company on State-owned Land in Changzhou City and the Compensation was approved at
the 17th Meeting of the Ninth Board of Directors. Later the said matter was approved at the First Extraordinary
General Meeting of Shareholders in 2023 dated 12 June 2023. As such the Company was agreed to sign a
contract with Changzhou Zhonglou District Housing and Urban-Rural Development Bureau on the expropriation
of the Wuxing branch company’s properties on state-owned land and the compensation with the contractual total
compensation amount being RMB117 million. On 14 June 2023 the Company signed the Agreement on the
Expropriation of the Properties of the Wuxing Branch Company on State-owned Land in Changzhou City and the
Compensation with Changzhou Zhonglou District Housing and Urban-Rural Development Bureau and received
the first compensation payment of RMB70 million on 28 June 2023 and received the residual compensation
payment of RMB47 million on 9 January 2024.
2. Housing expropriation on state-owned land and compensation of Sanjing Branch
On 27 October 2023 the Company held the Third Meeting of the Tenth Board of Directors deliberating on and
approving the Proposal on Signing the Sanjing Branch's Agreement on Non-residential Housing Expropriation
and Compensation in Xinbei District Changzhou City. The matter was approved at the third extraordinary general
meeting on 14 November 2023 approving that the Company would sign agreement with the Housing and
Urban-Rural Development Bureau of Changzhou National High-tech Industrial Development Zone and the
Housing Expropriation and Compensation Service Centre of Sanjing Street Xinbei District Changzhou City
regarding the housing expropriation on state-owned land and compensation of the Sanjing Branch. The total
compensation amount under the agreement was RMB99929900. On 29 November 2023 the Company signed the
Agreement on Non-residential Housing Expropriation and Compensation with the Housing and Urban-Rural
34Changchai Company Limited Interim Report 2024
Development Bureau of Changzhou National High-tech Industrial Development Zone and the Housing
Expropriation and Compensation Service Centre of Sanjing Street Xinbei District Changzhou City. As of the
Reporting Period the Company received the first compensation of RMB30 million.
3. Change of accounting firm appointed by the Company
On 7 December 2024 the Proposal on the Appointment of the Financial Audit Institution for 2024 and Its Audit
Expenses and the Proposal on the Appointment of the Internal Control Audit Institution for 2024 and Its Audit
Expenses were approved at the second interim meeting of the Board of Directors in 2024. Later the said matter
was approved at the First Extraordinary General Meeting of Shareholders in 2024 dated 30 July 2024. As such the
Company agreed to appoint Zhongxinghua Certified Pubic Accounts LLP (Special General Partnership) as the
auditor of the Company's finance and internal control in 2024 with the expenses for financial audit and internal
control audit being RMB600000 and RMB135000 respectively.XIV Significant Events of Subsidiaries
√ Applicable □ Not applicable
1. Acquisition of 25% of the equity interest in Horizon Agricultural Equipment
In June 2024 the Company acquired 25% of the equity interest in Horizon Agricultural Equipment held by
Horizon Investment and the Company now directly holds 100% of the equity interest in Horizon Agricultural
Equipment.
35Changchai Company Limited Interim Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Increase/decrease in the Reporting Period
Before After
(+/-)
Shares
Shares
as
as
dividen
New dividen
Percenta d Oth Subtot Percenta
Number issu d Number
ge (%) convert er al ge (%)
es convert
ed from
ed from
capital
profit
reserves
1. Restricted
568181818.05%0568181818.05%
shares
1.1 Shares held
00.00%000.00%
by government
1.2 Shares held
by state-owned 56818181. 8.05% 0 56818181.00 00 8.05%
legal persons
1.3 Shares held
by other
00.00%000.00%
domestic
investors
Among which:
Shares held by
00.00%000.00%
domestic legal
persons
Shares held by
domestic 0 0.00% 0 0 0.00%
natural persons
1.4 Shares held
by foreign 0 0.00% 0 0 0.00%
investors
Among which: 0 0.00% 0 0 0.00%
Shares held by
36Changchai Company Limited Interim Report 2024
foreign legal
persons
S
hares held by
00.00%000.00%
foreign natural
persons
2. Unrestricted 64887432
691.95%0
64887432
shares 6
91.95%
2.1
RMB-denomina 49887432 70.69% 0 49887432 70.69%
ted ordinary 6 6
shares
2.2
Domestically 15000000
021.26%0
1500000021.26%
listed foreign 0
shares
2.3 Oversea
listed foreign 0 0.00% 0 0 0.00%
shares
2.4 Other 0 0.00% 0 0 0.00%
3. Total shares 705692507 100.00% 0
70569250
7100.00%
Reasons for the share changes:
□ Applicable √ Not applicable
Approval of the share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Effects of the share changes on the basic and diluted earnings per share equity per share attributable to the
Company’s ordinary shareholders and other financial indicators of the prior year and the prior accounting period
respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
37Changchai Company Limited Interim Report 2024
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III Shareholders and Their Holdings
Unit: share
Number of ordinary Number of preference shareholders with
533230
shareholders resumed voting rights (if any)
5% or greater ordinary shareholders or the top 10 ordinary shareholders(excluding lending shares through
refinancing)
Shares in
Increa pledge or
se/dec
Shareh Restricted frozen
rease Unrestricted
Name of Nature of olding Ordinary ordinary
in the ordinary S
shareholder shareholder percent shares held shares
Report shares held h
age held Statu
ing ars
Period e
s
Changzhou
State-owned 5681818
Investment 32.26% 227663417 0 170845236
legal person 1
Group Co. Ltd
Domestic
Chen Jian natural 0.52% 3700000 221400 0 3700000
person
KGI ASIA Foreign
LIMITED legal person 0.44% 3101695 0 0 3101695
Domestic
Song Yang natural 0.41% 2871100 2871
person 100
02871100
N/A 0
Domestic
Wu Chunhua natural 0.32% 2236500 -205700 0 2236500person
Domestic
Chen Hengjun natural 0.23% 1649100 1322300 0 1649100person
Domestic
Li Suinan natural 0.23% 1600300 6500 0 1600300
person
Domestic
Zhang Wenbing natural 0.22% 1556700 0 0 1556700
person
38Changchai Company Limited Interim Report 2024
Domestic
Huang Guoliang natural 0.22% 1528891 0 0 1528891
person
BARCLAYS Foreign
BANK PLC legal person 0.21% 1490524
1490
52401490524
Strategic investor or general
legal person becoming a top-10
N/A
ordinary shareholder in a rights
issue (if any)
It is unknown whether there is among the top 10 public shareholders and
Related or acting-in-concert
the 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.Explain if any of the
shareholders above was involved
in entrusting/being entrusted with N/A
voting rights or waiving voting
rights
Special account for share
repurchases (if any) among the N/A
top 10 shareholders
Top 10 unrestricted shareholders (exclusive of shares lent in refinancing and executive lock-up shares)
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
Changzhou Investment Group RMB-denominated
170845236170845236
Co. Ltd ordinary share
RMB-denominated
Chen Jian 3700000 3700000
ordinary share
KGI ASIA LIMITED 3101695 Domestically listedforeign share 3101695
RMB-denominated
Song Yang 2871100 2871100
ordinary share
RMB-denominated
Wu Chunhua 2236500 2236500
ordinary share
RMB-denominated
Chen Hengjun 1649100 1649100
ordinary share
Li Suinan 1600300 Domestically listedforeign share 1600300
RMB-denominated
Zhang Wenbing 1556700 1556700
ordinary share
Huang Guoliang 1528891 Domestically listedforeign share 1528891
39Changchai Company Limited Interim Report 2024
RMB-denominated
BARCLAYS BANK PLC 1490524 1490524
ordinary share
Related or acting-in-concert
parties among the top 10
It is unknown whether there is among the top 10 public shareholders and
unrestricted ordinary
the top 10 unrestricted public shareholders any related parties or
shareholders as well as between
acting-in-concert parties as defined in the Administrative Measures for
the top 10 unrestricted ordinary
Information Regarding Shareholding Alteration.shareholders and the top 10
ordinary shareholders
Top 10 ordinary shareholders
Shareholder Chen Jian and Wu Chunhua respectively held 3300000
involved in securities margin
shares and 2236500 shares in the Company through their credit accounts.trading (if any)
5% or greater shareholders top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing
shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return
compared with the prior period
□ Applicable √ Not applicable
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.IV Change in Shareholdings of Directors Supervisors and Senior Management
□ Applicable √ Not applicable
No changes occurred to the shareholdings of the directors supervisors and senior management in the Reporting
Period. See the 2023 Annual Report for more details.V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
40Changchai Company Limited Interim Report 2024
Part VIII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
41Changchai Company Limited Interim Report 2024
Part IX Bonds
□ Applicable √ Not applicable
42Changchai Company Limited Interim Report 2024
Part X Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor
□ Yes √ No
These interim financial statements have not been audited by an independent auditor.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Changchai Company Limited
30 June 2024
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 791920099.90 1083867966.87
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial assets 402900783.53 225641429.94
Derivative financial assets
Notes receivable 115592564.84 161632567.94
Accounts receivable 1183949152.56 316543159.91
Receivables financing 12282312.54 195875948.92
Prepayments 14444116.16 12333310.85
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 2566508.89 49699753.61
Including: Interest receivable
Dividends
receivable
43Changchai Company Limited Interim Report 2024
Financial assets purchased under
resale agreements
Inventories 619715018.92 789220185.68
Including: Data resource
Contract assets
Assets held for sale 2951451.11
Current portion of non-current
40773509.75
assets
Other current assets 13766702.89 20910504.84
Total current assets 3160088711.34 2896498338.31
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments
Investments in other equity
917444025.67969488025.67
instruments
Other non-current financial
412914576.80412914576.80
assets
Investment property 38789201.33 39837558.11
Fixed assets 637435729.73 675596920.95
Construction in progress 4330676.58 4275622.18
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 145411326.91 148458185.68
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense 7759660.70 8227958.66
Deferred income tax assets 4174238.86 1518995.79
Other non-current assets 830991.15 2578776.77
Total non-current assets 2169090427.73 2262896620.61
44Changchai Company Limited Interim Report 2024
Total assets 5329179139.07 5159394958.92
Current liabilities:
Short-term borrowings
Borrowings from the central
bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 756037100.68 528139582.33
Accounts payable 589863799.52 641484184.05
Advances from customers 30678302.75 1647441.22
Contract liabilities 37517411.19 33352877.66
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 11190041.72 47738883.57
Taxes and levies payable 5684739.66 6231169.74
Other payables 206673763.07 159023382.81
Including: Interest payable
Dividends payable 3891433.83 3891433.83
Fees and commissions payable
Reinsurance payables
Liabilities directly associated
with assets held for sale
Current portion of non-current
liabilities
Other current liabilities 58096009.67 67069965.96
Total current liabilities 1695741168.26 1484687487.34
Non-current liabilities:
45Changchai Company Limited Interim Report 2024
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 31091031.75 32795896.48
Deferred income tax liabilities 155058021.85 171843455.52
Other non-current liabilities
Total non-current liabilities 186149053.60 204639352.00
Total liabilities 1881890221.86 1689326839.34
Owners’ equity:
Share capital 705692507.00 705692507.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 640509675.84 640509675.84
Less: Treasury stock
Other comprehensive income 622942921.82 667180321.82
Specific reserve 20082705.37 19432089.52
Surplus reserves 363695592.34 363695592.34
General reserve
Retained earnings 1019366832.03 1002436724.71
Total equity attributable to owners
3372290234.403398946911.23
of the Company as the parent
Non-controlling interests 74998682.81 71121208.35
Total owners’ equity 3447288917.21 3470068119.58
Total liabilities and owners’ equity 5329179139.07 5159394958.92
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
46Changchai Company Limited Interim Report 2024
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 684650508.98 971143382.52
Held-for-trading financial assets 302000000.00 100437916.67
Derivative financial assets
Notes receivable 100566078.42 152906979.84
Accounts receivable 1156324634.71 291996837.94
Accounts receivable financing 14682312.54 193679203.92
Prepayments 10752337.97 5850589.29
Other receivables 253310648.05 399142024.92
Including: Interest receivable
Dividends
receivable
Inventories 379778666.24 475538711.10
Including: Data resource
Contract assets
Assets held for sale 2951451.11
Current portion of non-current
40773509.75
assets
Other current assets 5839708.73
Total current assets 2905016638.02 2637308864.68
Non-current assets:
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 576443530.03 576443530.03
Investments in other equity
917444025.67969488025.67
instruments
Other non-current financial
412914576.80412914576.80
assets
Investment property 38789201.33 39837558.11
Fixed assets 207158781.94 229931726.27
47Changchai Company Limited Interim Report 2024
Construction in progress 2121021.69 2166940.74
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 57199072.30 58781756.11
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense
Deferred income tax assets 3575852.25 920609.18
Other non-current assets 830991.15 830991.15
Total non-current assets 2216477053.16 2291315714.06
Total assets 5121493691.18 4928624578.74
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 753437100.68 524671742.33
Accounts payable 446291900.59 526544716.02
Advances from customers 30678302.75 1647441.22
Contract liabilities 34394966.41 26149334.52
Employee benefits payable 4832521.38 40766429.54
Taxes payable 2247738.26 2069482.65
Other payables 215785963.92 151919473.64
Including: Interest payable
Dividends payable 3243179.97 3243179.97
Liabilities directly associated
with assets held for sale
Current portion of non-current
liabilities
Other current liabilities 49493487.22 53417011.96
Total current liabilities 1537161981.21 1327185631.88
Non-current liabilities:
Long-term borrowings
48Changchai Company Limited Interim Report 2024
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 31091031.75 32795896.48
Deferred income tax liabilities 149246477.87 157053077.87
Other non-current liabilities
Total non-current liabilities 180337509.62 189848974.35
Total liabilities 1717499490.83 1517034606.23
Owners’ equity:
Share capital 705692507.00 705692507.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 659418700.67 659418700.67
Less: Treasury stock
Other comprehensive income 622942921.82 667180321.82
Specific reserve 19193992.27 19010793.43
Surplus reserves 363695592.34 363695592.34
Retained earnings 1033050486.25 996592057.25
Total owners’ equity 3403994200.35 3411589972.51
Total liabilities and owners’ equity 5121493691.18 4928624578.74
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
49Changchai Company Limited Interim Report 2024
3. Consolidated Income Statement
Unit: RMB
Item H1 2024 H1 2023
1. Revenue 1495909152.63 1350517639.85
Including: Operating revenue 1495909152.63 1350517639.85
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 1402397808.63 1322596281.11
Including: Cost of sales 1247104070.05 1168898203.83
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 8959091.13 7827255.58
Selling expense 62703122.61 62131032.17
Administrative expense 53480629.46 52877371.06
R&D expense 38765247.04 35839071.42
Finance costs -8614351.66 -4976652.95
Including: Interest expense 1546928.49 3343884.90
Interest income 7969452.65 4264102.18
Add: Other income 1953702.37 3299056.52
Return on investment (“-” for loss) 14299040.62 3226921.70
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) -34487453.74 19360455.86
Credit impairment loss (“-” for loss) -17838282.66 -14547351.17
Asset impairment loss (“-” for loss) -359995.80 -565273.49
Asset disposal income (“-” for loss) 408245.54 105395693.25
3. Operating profit (“-” for loss) 57486600.33 144090861.41
Add: Non-operating income 1070935.19 495538.97
Less: Non-operating expense 267734.59 1297348.13
4. Profit before tax (“-” for loss) 58289800.93 143289052.25
50Changchai Company Limited Interim Report 2024
Less: Income tax expense 4314671.32 7189328.33
5. Net profit (“-” for net loss) 53975129.61 136099723.92
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
53975129.61136099723.92
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
50097655.15131937324.66
Company as the parent (“-” for net loss)
5.2.2 Net profit attributable to non-controlling
3877474.464162399.26
interests (“-” for net loss)
6. Other comprehensive income net of tax -44237400.00 73660150.00
Attributable to owners of the Company as the parent -44237400.00 73660150.00
6.1 Items that will not be reclassified to profit or loss -44237400.00 73660150.00
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
-44237400.0073660150.00
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
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 9737729.61 209759873.92
Attributable to owners of the Company as the parent 5860255.15 205597474.66
Attributable to non-controlling interests 3877474.46 4162399.26
51Changchai Company Limited Interim Report 2024
8. Earnings per share
8.1 Basic earnings per share 0.0710 0.1870
8.2 Diluted earnings per share 0.0710 0.1870
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
52Changchai Company Limited Interim Report 2024
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Operating revenue 1420095519.32 1245166233.55
Less: Cost of sales 1212212684.13 1092404343.46
Taxes and surcharges 5596041.85 4338250.54
Selling expense 57773822.40 55517272.45
Administrative expense 38925179.53 37544625.71
R&D expense 34813766.30 31151256.18
Finance costs -12954483.76 -8436313.24
Including: Interest expense 1415480.19 1562299.35
Interest income 11403739.83 7952110.19
Add: Other income 1756921.35 3200820.43
Return on investment (“-” for loss) 13453121.53 2732242.23
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) 354111.11
Credit impairment loss (“-” for loss) -18792776.77 -11755063.73
Asset impairment loss (“-” for loss) -349743.48 -410653.17
Asset disposal income (“-” for loss) 421678.54 105393483.13
2. Operating profit (“-” for loss) 80217710.04 132161738.45
Add: Non-operating income 567599.20
Less: Non-operating expense 3720.00 363382.47
3. Profit before tax (“-” for loss) 80781589.24 131798355.98
Less: Income tax expense 11155612.41 -247487.85
4. Net profit (“-” for net loss) 69625976.83 132045843.83
4.1 Net profit from continuing operations (“-” for net
69625976.83132045843.83
loss)
4.2 Net profit from discontinued operations (“-” for
net loss)
5. Other comprehensive income net of tax -44237400.00 73660150.00
5.1 Items that will not be reclassified to profit or loss -44237400.00 73660150.00
5.1.1 Changes caused by remeasurements on
defined benefit schemes
5.1.2 Other comprehensive income that will not
be reclassified to profit or loss under the equity method
53Changchai Company Limited Interim Report 2024
5.1.3 Changes in the fair value of investments in
-44237400.0073660150.00
other equity instruments
5.1.4 Changes in the fair value arising from
changes in own credit risk
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 Credit impairment allowance for
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 25388576.83 205705993.83
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
54Changchai Company Limited Interim Report 2024
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 881118416.96 1010313942.34
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 10606127.65 69957787.95
Cash generated from other operating activities 12788451.27 11524017.72
Subtotal of cash generated from operating activities 904512995.88 1091795748.01
Payments for commodities and services 748951967.58 918215681.86
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 183166748.96 174060228.57
Taxes paid 38069979.90 23195064.69
Cash used in other operating activities 96138812.44 81121589.64
Subtotal of cash used in operating activities 1066327508.88 1196592564.76
Net cash generated from/used in operating activities -161814513.00 -104796816.75
2. Cash flows from investing activities:
Proceeds from disinvestment 385750000.00 623016751.99
Return on investment 14299040.62 4508124.22
Net proceeds from the disposal of fixed assets intangible assets
76305099.3057844735.80
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities
55Changchai Company Limited Interim Report 2024
Subtotal of cash generated from investing activities 476354139.92 685369612.01
Payments for the acquisition of fixed assets intangible assets
11017090.96135352075.57
and other long-lived assets
Payments for investments 598044324.00 595377614.00
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 609061414.96 730729689.57
Net cash generated from/used in investing activities -132707275.04 -45360077.56
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-controlling interests
to subsidiaries
Borrowings raised
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings
Interest and dividends paid 33167547.83 8886489.92
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities
Subtotal of cash used in financing activities 33167547.83 8886489.92
Net cash generated from/used in financing activities -33167547.83 -8886489.92
4. Effect of foreign exchange rates changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -327689335.87 -159043384.23
Add: Cash and cash equivalents beginning of the period 971629523.46 810350966.05
6. Cash and cash equivalents end of the period 643940187.59 651307581.82
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
56Changchai Company Limited Interim Report 2024
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 792554114.17 882438846.47
Tax rebates 5571468.42 20491423.94
Cash generated from other operating activities 10526359.52 9587042.20
Subtotal of cash generated from operating activities 808651942.11 912517312.61
Payments for commodities and services 723988549.96 774101281.20
Cash paid to and for employees 153563701.50 139789044.66
Taxes paid 28596026.83 7394673.54
Cash used in other operating activities 77233383.77 247440184.71
Subtotal of cash used in operating activities 983381662.06 1168725184.11
Net cash generated from/used in operating activities -174729719.95 -256207871.50
2. Cash flows from investing activities:
Proceeds from disinvestment 370000000.00 610000000.00
Return on investment 13453121.53 4337174.74
Net proceeds from the disposal of fixed assets intangible assets
76421678.5457813485.80
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 459874800.07 672150660.54
Payments for the acquisition of fixed assets intangible assets
2211874.738705239.80
and other long-lived assets
Payments for investments 572000000.00 580000000.00
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities
Subtotal of cash used in investing activities 574211874.73 588705239.80
Net cash generated from/used in investing activities -114337074.66 83445420.74
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayment of borrowings
Interest and dividends paid 33167547.83 8773914.91
Cash used in other financing activities
57Changchai Company Limited Interim Report 2024
Subtotal of cash used in financing activities 33167547.83 8773914.91
Net cash generated from/used in financing activities -33167547.83 -8773914.91
4. Effect of foreign exchange rates changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -322234342.44 -181536365.67
Add: Cash and cash equivalents beginning of the period 899689740.60 704659776.14
6. Cash and cash equivalents end of the period 577455398.16 523123410.47
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
58Changchai Company Limited Interim Report 2024
7. Consolidated Statements of Changes in Owners’ Equity
H1 2024
Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Other L
equity e
instruments s
s:
T G
P r en
Pr
Item er e Other er Non-cont Total
Share ef pe Capital a compreh Specific Surplus al Retained Ot rolling owners’
capital er
Subtotal
tu Ot reserves s ensive reserve reserves re earnings her interests equity
re
al he u income se
d
b r r rv
sh
o y e
ar
n st
es
ds o
c
k
1. Balance as at the end of the 7056925 640509 667180 194320 363695 100243 339894 7112120 3470068
period of prior year 07.00 675.84 321.82 89.52 592.34 6724.71 6911.23 8.35 119.58
Add: Adjustment for change in
accounting policy
59Changchai Company Limited Interim Report 2024
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of 7056925 640509 667180 194320 363695 100243 339894 7112120 3470068
the Reporting Period 07.00 675.84 321.82 89.52 592.34 6724.71 6911.23 8.35 119.58
3. Increase/ decrease in the period -44237 650615. 169301 -26656 3877474 -227792
(“-” for decrease) 400.00 85 07.32 676.83 .46 02.37
3.1 Total comprehensive -44237 500976 586025 3877474 9737729
income 400.00 55.15 5.15 .46 .61
3.2 Capital increased and
reduced by owners
3.2.1 Ordinary shares
increased by owners
3.2.2 Capital increased by
holders of other equity
instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other
3.3 Profit distribution -331675 -33167 -33167547.83 547.83 47.83
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to -331675 -33167 -331675
owners (or shareholders) 47.83 547.83 47.83
3.3.4 Other
60Changchai Company Limited Interim Report 2024
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital
reserves
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve 650615. 650615. 650615.885 85 5
3.5.1 Increase in the period 308316 308316 30831666.06 6.06 .06
3.5.2 Used in the period 243255 243255 24325500.21 0.21 .21
3.6 Other
4. Balance as at the end of the 7056925 640509 622942 200827 363695 101936 337229 7499868 3447288
Reporting Period 07.00 675.84 921.82 05.37 592.34 6832.03 0234.40 2.81 917.21
H1 2023
Unit: RMB
61Changchai Company Limited Interim Report 2024
H1 2023
Equity attributable to owners of the Company as the parent
Other L
equity e
instruments s
s:
T G
P r en
Pr
Item er e Other er Non-cont Total
Share ef pe Capital a compreh Specific Surplus al Retained Ot rolling owners’
er Subtotalcapital tu Ot reserves s ensive reserve reserves re earnings her interests equity
re
al he u income se
d
b r r rv
sh
o y e
ar
n st
es
ds o
c
k
1. Balance as at the end of the 7056925 640133 655341 188488 349197 915495 328471 7246417 3357174
period of prior year 07.00 963.01 704.07 56.75 725.72 909.35 0665.90 2.67 838.57
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of 7056925 640133 655341 188488 349197 915495 328471 7246417 3357174
the Reporting Period 07.00 963.01 704.07 56.75 725.72 909.35 0665.90 2.67 838.57
62Changchai Company Limited Interim Report 2024
3. Increase/ decrease in the period 736601 217781 124880 200718 4162399 2048807
(“-” for decrease) 50.00 0.33 399.59 359.92 .26 59.18
3.1 Total comprehensive 736601 131937 205597 4162399 2097598
income 50.00 324.66 474.66 .26 73.92
3.2 Capital increased and
reduced by owners
3.2.1 Ordinary shares
increased by owners
3.2.2 Capital increased by
holders of other equity
instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other
3.3 Profit distribution -705692 -70569 -7056925.07 25.07 5.07
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to -705692 -70569 -705692
owners (or shareholders) 5.07 25.07 5.07
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital
reserves
63Changchai Company Limited Interim Report 2024
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve 217781 217781 21778100.33 0.33 .33
3.5.1 Increase in the period 459847 459847 45984733.04 3.04 .04
3.5.2 Used in the period 242066 242066 24206622.71 2.71 .71
3.6 Other
4. Balance as at the end of the 7056925 640133 729001 210266 349197 104037 348542 7662657 3562055
Reporting Period 07.00 963.01 854.07 67.08 725.72 6308.94 9025.82 1.93 597.75
Legal representative: Xie Guozhong General Manager: Xie Guozhong Head of the accounting department: Jiang He
64Changchai Company Limited Interim Report 2024
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024
Unit: RMB
H1 2024
Other equity
instruments
Le
Pe ss:
rp Other
Item Pre Tre Ot Totalet Capital comprehen Specific Surplus RetainedShare capital fer Ot asu he owners’
ua reserves sive reserve reserves earnings
red he ry r equity
l income
sha r sto
bo
res ck
nd
s
1. Balance as at the end of the 705692507.0 65941870 66718032 19010793. 363695592. 996592057. 34115899
period of prior year 0 0.67 1.82 43 34 25 72.51
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of 705692507.0 65941870 66718032 19010793. 363695592. 996592057. 34115899
the Reporting Period 0 0.67 1.82 43 34 25 72.51
3. Increase/ decrease in the period -4423740
0.00183198.84
36458429.0-7595772.1
(“-” for decrease) 0 6
65Changchai Company Limited Interim Report 2024
3.1 Total comprehensive -4423740 69625976.8 25388576.
income 0.00 3 83
3.2 Capital increased and
reduced by owners
3.2.1 Ordinary shares
increased by owners
3.2.2 Capital increased by
holders of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other
3.3 Profit distribution -33167547.8 -33167547.3 83
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to -33167547.8 -33167547.
owners (or shareholders) 3 83
3.3.3 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital reserves
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
66Changchai Company Limited Interim Report 2024
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve 183198.84 183198.84
3.5.1 Increase in the period 2333560.4 2333560.45 5
3.5.2 Used in the period 2150361.6 2150361.61 1
3.6 Other
4. Balance as at the end of the 705692507.0 65941870 62294292 19193992. 363695592. 103305048 34039942
Reporting Period 0 0.67 1.82 27 34 6.25 00.35
H1 2023
Unit: RMB
H1 2023
Other equity
instruments
Le
Pe ss:
rp Other
Item Pre Tre Ot Totalet Capital comprehen Specific Surplus RetainedShare capital fer Ot asu he owners’
ua reserves sive reserve reserves earnings
red he ry r equity
l income
sha r sto
bo
res ck
nd
s
67Changchai Company Limited Interim Report 2024
1. Balance as at the end of the 705692507.0 65941870 65534170 18848856. 349197725. 873168182. 32616676
period of prior year 0 0.67 4.07 75 72 73 76.94
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of 705692507.0 65941870 65534170 18848856. 349197725. 873168182. 32616676
the Reporting Period 0 0.67 4.07 75 72 73 76.94
3. Increase/ decrease in the period 73660150 2177810.3 124988918. 200826879
(“-” for decrease) .00 3 76 .09
3.1 Total comprehensive 73660150 132045843. 205705993
income .00 83 .83
3.2 Capital increased and
reduced by owners
3.2.1 Ordinary shares
increased by owners
3.2.2 Capital increased by
holders of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other
3.3 Profit distribution -7056925.07 -7056925.07
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
-7056925.07-7056925.0
owners (or shareholders) 7
68Changchai Company Limited Interim Report 2024
3.3.3 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital reserves
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve 2177810.3 2177810.33 3
3.5.1 Increase in the period 4598473.0 4598473.04 4
3.5.2 Used in the period 2420662.7 2420662.71 1
3.6 Other
4. Balance as at the end of the 705692507.0 65941870 72900185 21026667. 349197725. 998157101. 34624945
Reporting Period 0 0.67 4.07 08 72 49 56.03
Legal representative: Xie Guozhong General Manager: Xie Guozhong Head of the accounting department: Jiang He
69Changchai Company Limited Interim Report 2024
III. Company Profile
Changchai Company Limited (hereinafter referred to as “the Company”) was founded on 5 May 1994 which is a
company limited by shares promoted solely by Changzhou Diesel Engine Plant through the approval by the State
Commission for Restructuring the Economic Systems with document TGS [1993] No. 9 on 15 January 1993 by
way of public offering of shares. With the approved of the People’s Government of Jiangsu Province SZF [1993]
No. 67 as well as reexamined and approved by China Securities Regulatory Commission (“CSRC”) through
document ZJFSZ (1994) No. 9 the Company initially issued A shares to the public from 15 March 1994 to 30
March 1994. As approved by the Shenzhen Stock Exchange through document SZSFZ (1994) No. 15 such
tradable shares of the public got listing on 1 July 1994 at Shenzhen Stock Exchange with “Su Changchai A” for
short of stock as well as “0570” as stock code (present stock code is “000570”).In 1996 with the recommendation of the Office of the People’s Government of Jiangsu Province SZBH [1996]
No. 13 as well as first review by Shenzhen Municipal Securities Administration Office through SZBZ [1996] No.
24 and approval of the State Council Securities Commission ZWF [1996] No. 27 the Company issued 100
million B shares to qualified investors on 27 August 1996 to 30 August 1996 getting listed on 13 September
1996.
On 9 June 2006 the Company held a shareholders’ general meeting related to A shares market to examine and
approve share merger reform plan and performed the share merger reform on 19 June 2006.As examined and approved at the 2nd Extraordinary General Meeting of 2009 in September 2009 based on the
total share capital of 374249551 shares as at 30 June 2009 the Company implemented the profit distribution plan
i.e. to distribute 5 bonus shares and cash of RMB0.80 for every 10 shares with registered capital increased by
RMB187124775.00 as well as registered capital of RMB561374326.00 after change which verified by Jiangsu
Gongzheng Tianye Certified Public Accountants Company Limited with issuing Capital Verification Report SGC
[2010] No. B002.A non-public offering of up to 168412297 new shares was deliberated on and approved as a resolution of the
2020 Annual General Meeting held on 7 May 2021 and approved by the Approval of the Non-public Offering of
Shares of Changchai Co. Ltd. (CSRC Permit [2020] No. 3374) issued by Changchai Company Limited the China
Securities Regulatory Commission. On 16 June 2021 the capital verification report "S.G. W [2021] B062" was
issued by Gongzheng Tianye Accounting Firm (Special General Partnership) confirming that the Company had
issued 144318181 RMB ordinary shares (A shares) in a non-public offering with an additional paid-in capital
(share capital) of RMB144318181. After the capital increasethe total share capital of the Company was
RMB705692507.The unified social credit code of the enterprise business license of the Company is 91320400134792410W.The Company’s registered address is situated at No. 123 Huaide Middle Road Changzhou Jiangsu as well as its
head office located at No. 123 Huaide Middle Road Changzhou Jiangsu.The Company belongs to manufacturing with business scope including manufacturing and sale of diesel engine
diesel engines part and casting grain harvesting machine rotary cultivators walking tractor mould and fixtures
assembling and sale of diesel generating set and pumping unit. The Company mainly engaged in the production
and sales of small and medium-sized single cylinders and multi-cylinder diesel engine with the label of Changchai
Brand. The diesel engine produced and sold by the Company were mainly used in tractors combine harvest
models light commercial vehicle farm equipment small-sized construction machinery generating sets and
shipborne machinery and equipment etc. The Company’s main business remained unchanged in the Reporting
Period.
70Changchai Company Limited Interim Report 2024
The Company established the Board of Shareholders the Board of Directors and the Supervisory Committee
Corporate office Financial Department Political Department Investment and Development Department Audit
Department Human Recourses Department Production Department Procurement Department Sales Company
Chief Engineer Office Technology Center QA Department Foundry Machine Processing Plant Single-cylinder
Engine Plant Multi-cylinder Engine Plant，Machine Set Business Department and Overseas Business Departmentin the Company.The financial report has been approved to be issued by the Board of Directors on 21 August 2024.The consolidated scope of the Company of the Reporting Period includes the Company as the parent and 8
subsidiaries. For the details of the consolidated scope of the Reporting Period and the changes situation please
refer to the changes of the consolidated scope of the notes to the financial report and the notes to the equities
among other entities.IV. Basis for Preparation of the Financial Report
1. Basis for Preparation
With the going-concern assumption as the basis and based on transactions and other events that actually occurred
the Group prepared financial statements in accordance with The Accounting Standards for Business
Enterprises—Basic Standard issued by the Ministry of Finance with Decree No. 33 and revised with Decree No.
76 the various specific accounting standards the Application Guidance of Accounting Standards for Business
Enterprises the Interpretation of Accounting Standards for Business Enterprises and other regulations issued andrevised from 15 February 2006 onwards (hereinafter jointly referred to as “the Accounting Standards for BusinessEnterprises” “China Accounting Standards” or “CAS”) as well as the Rules for Preparation Convention of
Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in 2023)
by China Securities Regulatory Commission.In accordance with relevant provisions of the Accounting Standards for Business Enterprises the Group adopted
the accrual basis in accounting. Except for some financial instruments where impairment occurred on an asset an
impairment reserve was withdrawn accordingly pursuant to relevant requirements.
2. Continuation
The Company comprehensively evaluated the information acquired recently that there would be no such factors in
the 12 months from the end of the Reporting Period that would obviously influence the continuation capability of
the Company and predicted that the operating activities would continue in the future 12 months of the Company.The financial statement compiled base on the continuous operation.V. Important Accounting Policies and Estimations
Notification of specific accounting policies and accounting estimations:
The Company and each subsidiary according to the actual production and operation characteristics and in accord
with the regulations of the relevant ASBE formulated certain specific accounting policies and accounting
estimations which mainly reflected in the financial instruments withdrawal method of the bad debt provision of
the accounts receivable the measurement of the inventory and the depreciation of the fixed assets etc.
71Changchai Company Limited Interim Report 2024
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the Accounting
Standards for Business Enterprises which factually and completely present the Company’s and the Group’s
financial positions business results and cash flows and other relevant information.
2. Fiscal Period
The fiscal periods are divided into fiscal year and metaphase the fiscal year is from January 1 to December 31
and as the metaphase included monthly quarterly and semi-yearly periods.
3. Operating Cycle
A normal operating cycle refers to a period from the Group purchasing assets for processing to realizing cash or
cash equivalents. An operating cycle for the Group is 12 months which is also the classification criterion for the
liquidity of its assets and liabilities.
4. Currency Used in Bookkeeping
Renminbi is functional currency of the Company.
5. Methods for Determining Materiality Standards and Selection Criteria
√Applicable □ Not applicable
Item Materiality criteria
Account receivable with bad debt provision by major
single item Amount greater than or equal to RMB1000000.00
Other receivables with bad debt provision by major
single item Amount greater than or equal to RMB1000000.00
Significant construction in progress Amount greater than or equal to RMB3000000.00
6. Accounting Methods for Business Combinations under the Same Control and Business Combinations not
under the Same Control
(1) Business combinations under the same control:
A business combination under the same control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or the same parties both before and after the business
combination and on which the control is not temporary.For the merger of enterprises under the same control if the consideration of the merging enterprise is that it makes
payment in cash transfers non-cash assets or bear its debts it shall on the date of merger regard the share of the
book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment.The difference between the initial cost of the long-term equity investment and the payment in cash non-cash
assets transferred as well as the book value of the debts borne by the merging party shall offset against the capital
reserve. If the capital reserve is insufficient to dilute the retained earnings shall be adjusted.
72Changchai Company Limited Interim Report 2024
If the consideration of the merging enterprise is that it issues equity securities it shall on the date of merger
regard the share of the book value of the owner's equity of the merged enterprise as the initial cost of the
long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock while
the difference between the initial cost of the long-term equity investment and total face value of the shares issued
shall offset against the capital reserve. If the capital reserve is insufficient to dilute the retained earnings shall be
adjusted.All direct costs for the business combination including expenses for audit evaluating and legal services shall be
recorded into the profits and losses at the current period. The expenses such as the handling charges and
commission etc premium income of deducting the equity securities and as for the premium income was
insufficient to dilute the retained earnings shall be written down.Owning to the reasons such as the additional investment for the equity investment held before acquiring the
control right of the combined parties the confirmed relevant gains and losses other comprehensive income and
the changes of other net assets since the date of the earlier one between the date when acquiring the original equity
right and the date when the combine parties and combined ones were under the same control to the combination
date should be respectively written down and compared with the beginning balance of retained earnings or the
current gains and losses during the statement period.
(2) Business combinations not under the same control
A business combination not under the same control is a business combination in which the combining enterprises
are not ultimately controlled by the same party or the same parties both before and after the business combination.The combination costs of the acquirer and the identifiable net assets obtained by the acquirer in a business
combination shall be measured at the fair values. The acquirer shall recognize the positive balance between the
combination costs and the fair value of the identifiable net assets it obtains forms the acquiree as business
reputation. The direct relevant expenses occurred from the enterprise combination should be included in the
current gains and losses when occurred. The combination costs of the acquirer and the identifiable net assets
obtained by it in the combination shall be measured according to their fair values at the acquiring date. The
difference between the fair value of the assets paid out by the Company and its book value should be included in
the current gains and losses. The purchase date refers to the date that the purchaser acquires the control right of the
acquiree.For the business combinations not under the same control realized through step by step multiple transaction as for
the equity interests that the Group holds in the acquiree before the acquiring date they shall be re-measured
according to their fair values at the acquiring date; the positive difference between their fair values and carrying
amounts shall be recorded into the investment gains for the period including the acquiring date. The equity holed
by the acquiree which involved with the other comprehensive income and the other owners’ equities changes
except for the net gains and losses other comprehensive income and the profits distribution and other related
comprehensive gains and other owners’ equities which in relation to the equity interests that the Group holds in
the acquiree before the acquiring date should be transferred into the current investment income on the acquiring
date except for the other comprehensive income occurred from the re-measurement of the net profits of the
defined benefit plans or the changes of the net assets of the investees.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial Statements
(1) Criteria for determining control
Control refers to the authority held by the investor over the investee entailing participation in its relevant
activities to yield variable returns and the capability to influence the investee's returns through exercising power
73Changchai Company Limited Interim Report 2024
over it.The Company will judge whether these entities have been controlled by the investee based on its comprehensive
consideration of relevant facts and circumstances. Should any changes in such facts and circumstances alter the
elements defining control a reassessment is promptly conducted.Relevant facts and circumstances primarily encompass:
* The purpose of the investee's establishment.* The investee's pertinent activities and decision-making processes therein.* Whether the rights held by the investor currently enable it to dominate the investee's relevant activities.* Whether the investor gains variable returns through participating in the investee's relevant activities.* The investor's capacity to influence the investee's returns through exercising power over it.* The relationship between the investor and other entities.
(2) Consolidation scope
The consolidation scope of the Company's consolidated financial statements is determined based on control
encompassing all subsidiaries (including separately controlled entities by the Company) in the consolidated
financial statements.
(3) Combination procedure
The Company prepares consolidated financial statements based on its own and each subsidiary's financial
statements along with other relevant information.When the Company prepares the consolidated financial statements it shall regard the entire Group as an
accounting entity and shall reflect the overall financial status operating results and cash flows of the Group in
accordance with the requirements for recognition measurement and presentation of the relevant accounting
standard for business enterprises as well as unified accounting policies.All subsidiaries included in the consolidation scope of the consolidated financial statements apply accounting
policies and accounting periods consistent with the Company.The accounting policy or accounting period of each subsidiary is different from which of the Company which
shall be adjusted as the Company; or subsidiaries shall prepare financial statement again required by the Company
when preparing the consolidated financial statements.In preparing the consolidated financial statements transactions between the Company and its subsidiaries as well
as among subsidiaries themselves are offset to reflect their impact on the consolidated balance sheet consolidated
income statement consolidated cash flow statement and consolidated statement of changes in equity. If there are
differences in the recognition of the same transaction when viewed from the perspective of the corporate group's
consolidated financial statements compared to when viewed from the standpoint of the Company or a subsidiary
as the accounting entity adjustments are made from the perspective of the corporate group.The portion of a subsidiary’s shareholders’ equity and the portion of a subsidiary’s net profits and losses for the
period are recognized as minority interests and minority shareholder profits and losses respectively and presented
separately under shareholders’ equity and net profits in the consolidation financial statements. The portion of a
subsidiary’s net profits and losses for the period that belong to minority interests is presented as the item of
“minority shareholder profits and losses” under the bigger item of net profits in the consolidated financial
statements.Where the loss of a subsidiary shared by minority shareholders exceeds the portion enjoyed by minority
shareholders in the subsidiary’s opening owners’ equity minority interests are offset.For subsidiaries acquired through business combinations under common control adjustments to their financial
74Changchai Company Limited Interim Report 2024
statements are based on their assets liabilities (including goodwill arising from the acquisition by the ultimate
controller) and their carrying value in the financial statements of the ultimate controller.For subsidiaries acquired through business combinations not under common control adjustments to their financial
statements are based on the fair value of identifiable net assets as of the acquisition date.* Addition of subsidiaries or businesses
If subsidiaries or businesses are added through business combinations under common control during the Reporting
Period adjustments are made to the opening balances of the consolidated balance sheet. The income expenses
and profits of the subsidiaries or businesses from the beginning of the current period to the end of the Reporting
Period are included in the consolidated income statement. The cash flows of the subsidiaries or businesses from
the beginning of the current period to the end of the Reporting Period are included in the consolidated cash flow
statement. Comparative items in the financial statements are adjusted accordingly treating the reporting entity
after the combination as if it had existed since the date when control was obtained by the ultimate controller.If control over an investee under common control is achieved due to the reasons such as the additional investment
adjustments are made as if all parties participating in the merger existed in their current state from the date when
control was obtained by the ultimate controller. For the equity investment held before acquiring the control right
of the combined parties the confirmed relevant gains and losses other comprehensive income and the changes of
other net assets since the date of the earlier one between the date when acquiring the original equity right and the
date when the combine parties and combined ones were under the same control to the combination date should be
respectively written down and compared with the beginning balance of retained earnings or the current gains and
losses during the statement period.During the Reporting Period if there is an increase in subsidiaries or businesses due to business combinations not
under common control the opening balances of the consolidated balance sheet are not adjusted. The income
expenses and profits of the subsidiary or business from the acquisition date to the end of the Reporting Period are
included in the consolidated income statement. The cash flows of the subsidiary or business from the acquisition
date to the end of the Reporting Period are included in the consolidated cash flow statement.In the event of acquiring control over an investee previously not under common control due to additional
investments or similar reasons as for the equity interests that the Group holds in the acquiree before the acquiring
date they shall be re-measured according to their fair values at the acquiring date; the positive difference between
their fair values and carrying amounts shall be recorded into the investment gains for the period including the
acquiring date. The equity holed by the acquiree which involved with the other comprehensive income and the
other owners’ equities changes except for the net gains and losses other comprehensive income and the profits
distribution and other related comprehensive gains and other owners’ equities which in relation to the equity
interests that the Group holds in the acquiree before the acquiring date should be transferred into the current
investment income on the acquiring date except for the other comprehensive income occurred from the
re-measurement of the net profits of the defined benefit plans or the changes of the net assets of the investees.* Disposal of subsidiaries or businesses
A. General disposal methods
During the Reporting Period if the Company disposes of a subsidiary or business the income expenses and
profits of the subsidiary or business from the beginning of the period to the disposal date are included in the
consolidated income statement. The cash flows of the subsidiary or business from the beginning of the period to
the disposal date are included in the consolidated cash flow statement.Where the Group losses control on its original subsidiaries due to disposal of some equity investments or other
reasons the residual equity interests are re-measured according to the fair value on the date when such control
75Changchai Company Limited Interim Report 2024
ceases. The summation of the consideration obtained from the disposal of equity interests and the fair value of the
residual equity interests minus the portion in the original subsidiary’s net assets measured on a continuous basis
from the acquisition date that is enjoyable by the Group according to the original shareholding percentage in the
subsidiary is recorded in investment gains for the period when the Group’s control on the subsidiary ceases. Other
comprehensive incomes in relation to the equity investment and the other owners’ equities changes except for the
net gains and losses other comprehensive income and profits distribution in the original subsidiary are treated on
the same accounting basis as the acquiree directly disposes the relevant assets or liabilities (that is except for the
changes in the net liabilities or assets with a defined benefit plan resulted from re-measurement of the original
subsidiary the rest shall all be transferred into current investment gains) when such control ceases.B. Disposal of subsidiaries step by step
If the clauses conditions and economic impact by which the equity investments of a subsidiary were disposed of
step by step through multiple transactions until the control was lost and the various transactions in the equity
investments of a subsidiary were disposed of fell under one or more of the following circumstances the multiple
transactions were generally regarded as a "Package Deal":
a. These transactions are reached concurrently or after the impact thereof on each other is taken into consideration.b. These transactions might achieve a complete business result only as a whole;
c. The occurrence of a transaction depends on the occurrence of at a minimum one another transaction; and/or
d. A transaction is considered uneconomical separately but is considered economical when other transactions are
also taken into consideration.For the disposal of equity investment belongs to a package deal should be considered as a transaction and conduct
accounting treatment. However before losing control every disposal cost and corresponding net assets balance of
subsidiary of disposal investment are confirmed as other comprehensive income in consolidated financial
statements which together transferred into the current profits and losses in the loss of control when the Group
losing control on its subsidiary.For the disposal of the equity investment not belongs to a package deal should be executed accounting treatment
according to the relevant policies of partly disposing the equity investment of the subsidiaries under the situation
not lose the control right before losing the control right; when losing the control right the former should be
executed accounting treatment according to the general disposing method of the disposal of the subsidiaries.* Acquisition of minority equity of subsidiaries
The balance existed between the long-term equity investment increased by acquiring shares of minority interest
and the attributable net assets on the subsidiary calculated by the increased shares held since the purchase date (or
combination date) the share premium of capital reserves within the consolidated balance sheet shall be adjusted
if the capital reserves are not sufficient to offset the retained profits shall be adjusted.* The Company disposed part of the long-term equity investment on subsidiaries without losing its controlling
right on them
In the case of partial disposal of long-term equity investments in a subsidiary without loss of control the
difference between the disposal proceeds obtained and the proportionate share of net assets of the subsidiary
continuously calculated from the purchase date or merger date corresponding to the disposal of long-term equity
investments is adjusted in the share premium within the consolidated balance sheet. If the share premium in the
capital reserve is insufficient to offset the difference adjustments are made to retained earnings.
76Changchai Company Limited Interim Report 2024
8. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
The Group classifies joint arrangements into joint operations and joint ventures.A joint operation refers to a joint arrangement where the Group is the joint operations party of the joint
arrangement and enjoys assets and has to bear liabilities related to the arrangement. The Company confirms the
following items related to the interests share among the joint operations and executes accounting treatment
according to the regulations of the relevant ASBE:
(1) Recognizes the assets that it holds and bears in the joint operation and recognizes the jointly-held assets
according to the Group’s stake in the joint operation;
(2) Recognizes the liabilities that it holds and bears in the joint operation and recognizes the jointly-held liabilities
according to the Group’s stake in the joint operation;
(3) Recognizes the income from sale of the Group’s share in the output of the joint operation
(4) Recognizes the income from sale of the joint operation’s outputs according to the Group’s stake in it
(5) Recognizes the expense solely incurred to the Group and the expense incurred to the joint operation according
to the Group’s stake in it.
9. Recognition Standard for Cash and Cash Equivalents
In the Group’s understanding cash and cash equivalents include cash on hand any deposit that can be used for
cover and short-term (usually due within 3 months since the day of purchase) and high circulating investments
which are easily convertible into known amount of cash and whose risks in change of value are minimal.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency business
Concerning the foreign-currency transactions that occurred the foreign currency shall be converted into the
recording currency according to the middle price of the market exchange rate disclosed by the People’s Bank of
China on the date of the transaction. Among the said transactions that occurred those involving foreign exchanges
shall be converted according to the exchange rates adopted in the actual transactions.On the balance sheet date the foreign-currency monetary assets and the balance of the liability account shall be
converted into the recoding currency according to the middle price of the market exchange rates disclosed by the
People’s Bank of China on the Balance Sheet Date. The difference between the recording-currency amount
converted according to the exchange rate on the Balance Sheet Date and the original book recording-currency
amount shall be recognized as gains/losses from foreign exchange. And the exchange gain/loss caused by the
foreign-currency borrowings related to purchasing fixed assets shall be handled according to the principle of
capitalizing borrowing expenses; the exchange gain/loss incurred in the establishment period shall be recorded
into the establishment expense; others shall be recorded into the financial expenses for the current period.On the balance sheet date the foreign-currency non-monetary items measured by historical cost shall be converted
according to the middle price of the market exchange disclosed by the People’s Bank of China on the date of the
transaction with no changes in the original recording-currency amount; while the foreign-currency non-monetary
items measured by fair value shall be converted according to the middle price of the market exchange disclosed by
the People’s Bank of China on the date when the fair value is recognized and the exchange gain/loss caused
thereof shall be recognized as the gain/loss from fair value changes and recorded into the gain/loss of the current
77Changchai Company Limited Interim Report 2024
period.
(2) Translation of foreign currency
The assets and liabilities items among the balance sheet of the foreign operation shall be translated at a spotexchange rate on the balance sheet date. Among the owner’s equity items except for the items as “undistributedprofits” other items shall be translated at the spot exchange rate at the time when they are incurred. And the
revenues and expenses items among the balance sheet of the foreign operation shall be translated at the
approximate exchange rate of the transaction date. The difference caused from the above transaction of the foreign
currency statement should be listed in the other comprehensive income among the owners’ equities.
11. Financial Instruments
(1) Classification of Financial Instruments
The Company classifies the financial assets when initially recognized into the following three categories based on
the business model for financial assets management and characteristics of contractual cash flow of financial assets:
financial assets measured at amortized cost financial assets at fair value through other comprehensive income
(debt instruments) and financial assets at fair value through profit or loss
Financial liabilities were classifies when initially recognized into financial liabilities at fair value through profit or
loss and financial liabilities measured at amortized cost.
(2) Recognition Basis and Measurement Method for Financial Instruments
* Financial assets measured at amortized cost
Financial assets at amortized cost include notes receivable accounts receivable other receivables long-term
receivables and investment in debt obligations which are initially measured at fair value and related transaction
cost shall be recorded into the initial recognized amount. For accounts receivable excluding significant financing
and accounts receivable that the Company decides not to consider financing components less than one year the
initial measurement shall be made at the contract transaction price. The interest calculated with actual rates for the
holding period shall be recorded into the current profit or loss. When recovered or disposed the difference
between the price obtained and the carrying value of the financial assets shall be recorded into the current profit or
loss.* Financial assets at fair value through other comprehensive income (debt instruments)
Financial assets at fair value through other comprehensive income (debt instruments) include accounts receivable
financing and investment in other debt obligations which are initially measured at fair value and related
transaction cost shall be recorded into the initial recognized amount. The subsequent measurement of the financial
assets shall be at fair value and changes of fair value except for interest calculated with actual rates impairment
losses or gains and exchange gains or losses shall be recorded into other comprehensive income. When
derecognized the accumulated gains or losses originally recorded into other comprehensive income shall be
transferred into the current profit or loss.* Financial assets at fair value through other comprehensive income (equity instruments)
Financial assets at fair value through other comprehensive income (equity instruments) include investment in
other equity instruments etc. which are initially measured at fair value and related transaction cost shall be
recorded into the initial recognized amount. The subsequent measurement of the financial assets shall be at fair
value and changes of fair value shall be recorded into other comprehensive income. The dividends obtained shall
be recorded into the current profit or loss. When derecognized the accumulated gains or losses originally recorded
into other comprehensive income shall be transferred into retained earnings.
78Changchai Company Limited Interim Report 2024
* Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include held-for-trading financial assets derivative financial
assets and other non-current financial assets which are initially measured at fair value and the related transaction
cost shall be recorded into the current profit or loss. The subsequent measurement of the financial assets shall be
at fair value and the changes of fair value shall be recorded into the current profit or loss.* Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and derivative
financial liabilities which are initially measured at fair value and the related transaction cost shall be recorded into
the current profit or loss. The subsequent measurement of the financial liabilities shall be at fair value and the
changes of fair value shall be recorded into the current profit or loss. When derecognized the difference between
the carrying value and the paid consideration shall be recorded into the current profit or loss.* Financial liabilities at amortized cost
Financial liabilities at amortized cost include short-term borrowings notes payable accounts payable other
payables long-term borrowings bonds payable and long-term payables which are initially measured at fair value
and the related transaction cost shall be recorded into the initial recognized amount. The interest calculated with
actual rates for the holding period shall be recorded into the current profit or loss. When derecognized the
difference between the paid consideration and the carrying value of the financial liabilities shall be recorded into
the current profit or loss.
(3) Recognition Basis and Measurement of Transfer of Financial Assets
Where the Company has transferred nearly all of the risks and rewards related to the ownership of the financial
asset to the transferee it shall stop recognizing the financial asset and separately recognize the rights and
obligations generated retained from the transfer as assets or liabilities. If it retained nearly all of the risks and
rewards related to the ownership of the financial asset it shall continue to recognize the transferred financial asset.Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of a
financial asset it shall deal with it according to the circumstances as follows respectively: (1) If it gives up its
control over the financial asset it shall stop recognizing the financial asset and separately recognize the rights and
obligations generated retained from the transfer as assets or liabilities; (2) If it does not give up its control over the
financial asset it shall according to the extent of its continuous involvement in the transferred financial asset
recognize the related financial asset and recognize the relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for stopping recognition the difference between
the amounts of the following 2 items shall be recorded in the profits and losses of the current period: (1) The
carrying value of the transferred financial asset on the derecognition date; (2) The sum of consideration received
from the transfer of financial assets and derecognition amount among the accumulative amount of the changes of
the fair value originally recorded in the other comprehensive income (the financial assets involve transfer are
investments in debt instruments at fair value through other comprehensive income. If the transfer of partial
financial asset satisfies the conditions to stop the recognition the entire carrying value of the transferred financial
asset shall between the portion whose recognition has been stopped and the portion whose recognition has not
been stopped be apportioned according to their respective relative fair value on the transfer date and the
difference between the amounts of the following two items shall be included into the profits and losses of the
current period: (1)The carrying value of the portion whose recognition has been stopped; (2)The sum of
consideration of the portion whose recognition has been stopped and derecognition amount among the
accumulative amount of the changes of the fair value originally recorded in the other comprehensive income (the
financial assets involve transfer are investments in debt instruments at fair value through other comprehensive
79Changchai Company Limited Interim Report 2024
income.
(4) Derecognition Basis of Financial Liabilities
A financial liability or part of it can be derecognized after its current obligation has been relieved in full or in part.
(5) Recognition of Fair Value of Financial Assets and Financial Liabilities
The fair value of financial instruments with an active market is determined by the quoted price in the active
market. For financial instruments without active market the fair value is determined by valuation techniques. The
Company adopts the valuation techniques applicable to the current conditions which are supported by sufficient
data and other information for valuation and selects the input values consistent with the characteristics of assets
or liabilities considered by market participants in asset or liability transactions with priority to observable input
values. Unobservable input values are used only when relevant observable input values are not available or
practical.
(6) Impairment of financial instrument
* Impairment measurement and accounting handling of financial instrument
Based on expected credit loss the Company conducts impairment handling and confirms credit impairment loss
for financial assets which is measured by amortized cost debt instrument investment which is measured by fair
value and whose change is calculated into other comprehensive profits financial guarantee contract.Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of
contract breach occurrence as the weight. Credit loss refers to the difference between all contract cash flow which
is converted into cash according to actual interest rate and receivable according to contract and all cash flow
which to be charged as expected i.e. current value of all cash shortage. Among it as for financial asset purchased
or original which has had credit impairment it should be converted into cash according actual interest rate of this
financial asset after credit adjustment.Lifetime expected credit losses refer to those caused by possible defaults during the entire expected duration of a
financial instrument.The expected credit losses in the next 12 months refers to those caused by the default events of the financial
instrument that may occur within 12 months (or the expected duration if the expected duration of the financial
instrument is less than 12 months) after the balance sheet date and is part of the expected credit losses in the
entire duration.On each balance sheet date the Company respectively measured the expected credit losses of financial
instruments in different stages. If the credit risk of a financial instrument has had no significant increase since its
initial recognition the instrument shall fall in the first stage for which the Company would measure the loss
reserves according to the expected credit losses in the future 12 months. If the credit risk of a financial instrument
has had a significant increase since its initial recognition but no credit impairment has occurred the instrument
shall fall in the second stage for which the Company would measure the loss reserves according to the expected
credit losses in the entire duration of the instrument. If the credit impairment has occurred since its initial
recognition the financial instrument shall fall in the third stage for which the Company would measure the loss
reserves according to the expected credit losses in the entire duration of the instrument.As for a financial instrument with low credit risks on the balance sheet date the Company measured the loss
reserves according to the expected credit losses in the future 12 months assuming that its credit risk has had no
significant increase since its initial recognition.For financial instruments with low credit risks in stages 1 and 2 the Company calculated the interest income at the
effective interest rate and on the carrying amount of the instruments without deductions for provisions for asset
impairment. For financial instruments in stage 3 interest income was calculated at the effective interest rates and
80Changchai Company Limited Interim Report 2024
on the amortized cost by reducing the provisions for asset impairment from the carrying amount.For notes receivables accounts receivables and financing receivables whether there was a significant financial
component or not the Company measured the loss reserves based on the expected credit losses for the entire
duration.A. Accounts receivable
For notes receivable accounts receivable other receivables and accounts receivable financing with objective
evidence indicating impairment and those suitable for individual evaluation the Company carries out impairment
test separately to confirm expected credit loss and prepare provision for impairment of single items. For notes
receivable accounts receivable other receivables accounts receivable financing contract assets and long-term
receivables without objective evidence of impairment or a single financial asset with expected credit loss
impossible to be assessed at a reasonable cost the Company divides the notes receivable accounts receivable
other receivables and accounts receivable financing into groups according to the characteristics of credit risk and
calculates the expected credit loss based on receivable groups. The basis for recognizing groups is as follows:
Item Recognition basis Method of measuring expected credit losses
Group 1 of notes Consulting historical experience in credit losses
All commercial bills
receivable combining current situation and prediction for future
Bank’s acceptance bills economic situation the expected credit loss shall beGroup 2 of notes
with low credit rating accounted through exposure at default and the expectedreceivable credit loss rate over the entire life
Bank’s acceptance bills Consulting historical experience in credit losses
with high credit rating combining current situation and prediction for future
Accounts receivable
economic situation the expected credit loss shall be
financing
accounted through exposure at default and the expected
credit loss rate over the entire life
Prepare the comparative list between aging of accounts
receivable and expected credit loss rate over the entire
life and calculate the expected credit loss by consulting
Accounts Accounts receivable
historical experience in credit losses combining current
receivable-credit risk portfolio with credit
situation and prediction for future economic situation.characteristics group period
The Company takes aging as credit risk characteristics
groups and calculates the expected credit loss for
accounts receivable.Accounts Consulting historical experience in credit losses
receivable-intercourse combining current situation and prediction for future
Related party within the
funds among related economic situation the expected credit loss shall be
consolidation scope
party group within the accounted through exposure at default and the expected
consolidation scope credit loss rate over the entire life
Basis for recognizing groups of other receivables is as follows:
Item Recognition basis Method of measuring expected credit losses
Group 1 of other receivables Other receivables Consulting historical experience in credit losses
excluding those from combining current situation and prediction for future
81Changchai Company Limited Interim Report 2024
related parties-aging economic situation the expected credit loss shall be
group accounted through exposure at default and the expected
credit loss rate within the next 12 months or over the
entire life
Consulting historical experience in credit losses
combining current situation and prediction for future
Related party within
economic situation the expected credit loss shall be
Group 2 of other receivables the consolidation
accounted through exposure at default and the expected
scope
credit loss rate within the next 12 months or over the
entire life
12. Accounts Receivable
See “11. Financial Instruments”.
13. Accounts Receivable Financing
See “11. Financial Instruments”.
14. Other Receivables
See “11. Financial Instruments”.
15. Contract Assets
Contract Assets means that the Company is endowed with the right to charge the consideration through
transferring any commodity or service to the client and such right depends on other factors except the passing of
time. The Company’s unconditional right (only depending on the passing of time) of charging the consideration
from the client shall be separately presented as receivables.The recognition method and accounting treatment method of the estimated credit loss of contract assets are
consistent with that specified in Notes V.11.
16. Inventory
(1) Category of Inventory
Inventory refers to the held-for-sale finished products or commodities goods in process materials consumed in
the production process or the process providing the labor service etc. Inventory is mainly including the raw
materials low priced and easily worn articles unfinished products inventories and work in process–outsourced
etc.
(2) Pricing method
Purchasing and storage of the various inventories should be valued according to the planed cost and the dispatch
be calculated according to the weighted average method; carried forward the cost of the finished products
82Changchai Company Limited Interim Report 2024
according to the actual cost of the current period and the sales cost according to the weighted average method.
(3) Determination basis of the net realizable value of inventory and withdrawal method of the provision for falling
price of inventory
At the balance sheet date inventories are measured at the lower of the costs and net realizable value. When all the
inventories are checked roundly for those which were destroyed outdated in all or in part sold at a loss etc the
Company shall estimate the irrecoverable part of its cost and withdrawal the inventory falling price reserve at the
year-end. Where the cost of the single inventory item is higher than the net realizable value the inventory falling
price reserve shall be withdrawn and recorded into profits and losses of the current period. Of which: in the
normal production and operating process as for the commodities inventory directly for sales such as the finished
products commodities and the materials for sales should recognize the net realizable value according to the
amount of the estimated selling price of the inventory minuses the estimated selling expenses and the relevant
taxes; as for the materials inventory needs to be processed in the normal production and operating process should
recognize its net realizable value according to the amount of the estimated selling price of the finished products
minuses the cost predicts to be occur when the production completes and the estimated selling expenses as well as
the relevant taxes; on the balance sheet date for the same inventory with one part agreed by the contract price
and other parts not by the contract price should be respectively recognized the net realizable value. For items of
inventories relating to a product line that are produced and marketed in the same geographical area have the same
or similar end users or purposes and cannot be practicably evaluated separately from other items in that product
line provision for decline in value is determined on an aggregate basis; for large quantity and low value items of
inventories provision for decline in value is made based on categories of inventories.
(4) The perpetual inventory system is maintained for stock system.
(5) Amortization method of low-value consumables and packages
One time amortization method is adopted for low-value consumables and packages.
17. Assets Held for Sale
(1) Classification under held for sale recognition criteria
The Company confirms certain non-current assets or disposal groups as held for sale when they simultaneously
meet the following conditions:
* They can be sold immediately in their current condition following the customary practices observed in similar
transactions; and
* The sale is highly probable meaning the Company has resolved to execute a sales plan obtained regulatory
approval (where applicable) secured definite purchase commitments and anticipates completion of the sale
within one year.A definite purchase commitment refers to a legally binding purchase agreement between the Company and
another party. This agreement encompasses essential terms such as the transaction price timing and sufficiently
stringent penalty clauses for breach minimizing the likelihood of significant adjustments or cancellation.
(2) Accounting treatment for held for sale assets
The Company does not depreciate or amortize non-current assets or disposal groups classified as held for sale. If
their carrying amount exceeds the net amount derived from subtracting the fair value less selling costs the
carrying amount should be written down to the net amount. The written-down amount is recognized as an
impairment loss reflected in the current period's income statement while also establishing a provision for
impairment of held for sale assets.
83Changchai Company Limited Interim Report 2024
Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall be measured at the
lower of net amount of initial measurement amount minus sales cost and that of fair value minus selling expenses
assuming they were not classified as held-for-sale during initial measurement.The aforementioned principles apply to all non-current assets excluding investment properties measured using the
fair value model biological assets measured at fair value less selling costs assets arising from employee benefits
deferred tax assets financial assets governed by accounting standards related to financial instruments and rights
arising from insurance contracts regulated by accounting standards related to insurance contracts.
18. Long-term Equity Investments
(1) Judgment standard of joint control and significant influences
Joint control refers to the control jointly owned according to the relevant agreement on an arrangement by the
Company and the relevant activities of the arrangement should be decided only after the participants which share
the control right make consensus. Significant influence refers to the power of the Company which could anticipate
in the finance and the operation polices of the investees but could not control or jointly control the formulation of
the policies with the other parties.
(2) Recognition for initial investment cost
The initial investment cost of the long-term equity investment shall be recognized by adopting the following ways
in accordance with different methods of acquisition:
1) As for those forms under the same control of the enterprise combine if the combine party takes the cash
payment non-cash assets transformation liabilities assumption or equity securities issuance as the combination
consideration should take the shares of the book value by the ultimate control party in the consolidate financial
statement of the owners’ equities of the combiners acquired on the merger date as the initial investment cost. The
difference between the initial investment cost and the book value of the paid combination consideration or the
total amount of the issued shares of the long-term equity investment should be adjusted the capital reserve; If the
capital reserve is insufficient to dilute the retained earnings shall be adjusted. To include each direct relevant
expense occurred when executing the enterprise merger into the current gains and losses; while the handling
charges and commission occurs from the issuing the equity securities or the bonds for the enterprise merger
should be included in the initial measurement amount of the shareholders’ equities or the liabilities.
2) As for long-term equity investment acquired through the merger of enterprises not under the same control its
initial investment cost shall regard as the combination cost calculated by the fair value of the assets equity
instrument issued and liabilities incurred or undertaken on the purchase date adding the direct cost related with the
acquisition. The identifiable assets of the combined party and the liabilities (including contingent liability)
undertaken on the combining date shall be measured at the fair value without considering the amount of minority
interest. The acquirer shall recognize the positive balance between the combination costs and the fair value of the
identifiable net assets it obtains from the acquiree as business reputation. The acquirer shall record the negative
balance between the combination costs and the fair value of the identifiable net assets it obtains from the acquiree
into the consolidated income statement directly. The agent expense and other relevant management expenses such
as the audit legal service and evaluation consultation occurs from the enterprise merger should be included in the
current gains and losses when occur; while the handling charges and commission occurs from the issuing the
equity securities or the bonds for the enterprise merger should be included in the initial measurement amount of
the shareholders’ equities or the liabilities.
3) Long-term equity investment obtained by other means
The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost
84Changchai Company Limited Interim Report 2024
which is actually paid.The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair
value of the equity securities issued.The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement the unfair value stipulated in the contract or agreement shall be measured at fair value.As for long-term investment obtained by the exchange of non-monetary assets where it is commercial in nature
the fair value of the assets surrendered shall be recognized as the initial cost of the long-term equity investment
received; where it is not commercial in nature the book value of the assets surrendered shall be recognized as the
initial cost of the long-term equity investment received.The initial cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at
fair value of long-term equity investment.
(3) Subsequent measurement and recognition of profits and losses
1) An investment in the subsidiary company shall be measured by employing the cost method
Where the Company hold and is able to do equity investment with control over an invested entity the invested
entity shall be its subsidiary company. Where the Company holds the shares of an entity over 50% or while the
Company holds the shares of an entity below 50% but has a real control to the said entity then the said entity
shall be its subsidiary company.
2) An investment in the joint enterprise or associated enterprise shall be measured by employing the equity
method
Where the Company hold and is able to do equity investment with joint control with other parties over an
invested entity the invested entity shall be its joint enterprise. Where the Company hold and is able to have
equity investment with significant influences on an invested entity the invested entity shall be its associated
entity.After the Company acquired the long-term equity investment should respectively recognize investment income
and other comprehensive income according to the net gains and losses as well as the portion of other
comprehensive income which should be enjoyed or be shared and at the same time adjust the book value of the
long-term equity investment; corresponding reduce the book value of the long-term equity investment according
to profits which be declared to distribute by the investees or the portion of the calculation of cash dividends which
should be enjoyed; for the other changes except for the net gains and losses other comprehensive income and the
owners’ equity except for the profits distribution of the investees should adjust the book value of the long-term
equity investment as well as include in the owners’ equity .The investing enterprise shall on the ground of the fair value of all identifiable assets of the invested entity when
it obtains the investment recognize the attributable share of the net profits and losses of the invested entity after it
adjusts the net profits of the invested entity.If the accounting policy adopted by the investees is not accord with that of the Company should be adjusted
according to the accounting policies of the Company and the financial statement of the investees during the
accounting period and according which to recognize the investment income as well as other comprehensive
income.For the transaction happened between the Company and associated enterprises as well as joint ventures if the
assets launched or sold not form into business the portion of the unrealized gains and losses of the internal
transaction which belongs to the Company according to the calculation of the enjoyed proportion should
recognize the investment gains and losses on the basis. But the losses of the unrealized internal transaction
happened between the Company and the investees which belongs to the impairment losses of the transferred assets
85Changchai Company Limited Interim Report 2024
should not be neutralized.The Company shall recognize the net losses of the invested enterprise according to the following sequence: first of
all to write down the book value of the long-term equity investment. Secondly if the book value of the long-term
equity investment is insufficient for written down should be continued to recognized the investment losses limited
to the book value of other long-term equity which forms of the net investment of the investees and to written
down the book value of the long-term accounts receivable etc. Lastly through the above handling for those
should still undertake the additional obligations according to the investment contracts or the agreements it shall
be recognized as the estimated liabilities in accordance with the estimated duties and then recorded into
investment losses at current period. If the invested entity realizes any net profits later the Company shall after the
amount of its attributable share of profits offsets against its attributable share of the un-recognized losses resume
recognizing its attributable share of profits.In the preparation for the financial statements the balance existed between the long-term equity investment
increased by acquiring shares of minority interest and the attributable net assets on the subsidiary calculated by
the increased shares held since the purchase date (or combination date) the capital reserves shall be adjusted if
the capital reserves are not sufficient to offset the retained profits shall be adjusted; the Company disposed part of
the long-term equity investment on subsidiaries without losing its controlling right on them the balance between
the disposed price and attributable net assets of subsidiaries by disposing the long-term equity investment shall be
recorded into owners’ equity.For other ways on disposal of long-term equity investment the balance between the book value of the disposed
equity and its actual payment gained shall be recorded into current profits and losses.For the long-term equity investment measured by adopting equity method if the remained equity after disposal
still adopts the equity method for measurement the other comprehensive income originally recorded into owners’
equity should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly disposed
by the investees according to the corresponding proportion. The owners’ equity recognized owning to the changes
of the other owners’ equity except for the net gains and losses other comprehensive income and the profits
distribution of the investees should be transferred into the current gains and losses according to the proportion.For the long-term equity investment which adopts the cost method of measurement if the remained equity still
adopt the cost method the other comprehensive income recognized owning to adopting the equity method for
measurement or the recognition and measurement standards of financial instrument before acquiring the control of
the investees should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly
disposed by the investees and should be carried forward into the current gains and losses according to the
proportion; the changes of the other owners’ equity except for the net gains and losses other comprehensive
income and the profits distribution among the net assets of the investees which recognized by adopting the equity
method for measurement should be carried forward into the current gains and losses according to the proportion.For those the Company lost the control of the investees by disposing part of the equity investment as well as the
remained equity after disposal could execute joint control or significant influences on the investees should change
to measure by equity method when compiling the individual financial statement and should adjust the
measurement of the remained equity to equity method as adopted since the time acquired; if the remained equity
after disposal could not execute joint control or significant influences on the investees should change the
accounting disposal according to the relevant regulations of the recognition and measurement standards of
financial instrument and its difference between the fair value and book value on the date lose the control right
should be included in the current gains and losses. For the other comprehensive income recognized by adopting
equity method for measurement or the recognition and measurement standards of financial instrument before the
Company acquired the control of the investees should execute the accounting disposal by adopting the same basis
86Changchai Company Limited Interim Report 2024
of the accounting disposal of the relevant assets or liabilities directly disposed by the investees when lose the
control of them while the changes of the other owners’ equity except for the net gains and losses other
comprehensive income and the profits distribution among the net assets of the investees which recognized by
adopting the equity method for measurement should be carried forward into the current gains and losses
according to the proportion. Of which for the disposed remained equity which adopted the equity method for
measurement the other comprehensive income and the other owners’ equity should be carried forward according
to the proportion; for the disposed remained equity which changed to execute the accounting disposal according to
the recognition and measurement standards of financial instrument the other comprehensive income and the other
owners’ equity should be carried forward in full amount.For those the Company lost the control of the investees by disposing part of the equity investment the disposed
remained equity should change to calculate according to the recognition and measurement standards of financial
instrument and difference between the fair value and book value on the date lose the control right should be
included in the current gains and losses. For the other comprehensive income recognized from the original equity
investment by adopting the equity method should execute the accounting disposal by adopting the same basis of
the accounting disposal of the relevant assets or liabilities directly disposed by the investees when terminate the
equity method for measurement while for the owners’ equity recognized owning to the changes of the other
owner’s equity except for the net gains and losses other comprehensive income and the profits distribution of the
investees should be transferred into the current investment income with full amount when terminate adopting the
equity method.
19. Investment Real Estate
Measurement mode of investment real estate:
Measurement of cost method
Depreciation or amortization method
The investment real estate shall be measured at its cost. Of which the cost of an investment real estate by
acquisition consists of the acquisition price relevant taxes and other expense directly relegated to the asset; the
cost of a self-built investment real estate composes of the necessary expenses for building the asset to the hoped
condition for use. The investment real estate invested by investors shall be recorded at the value stipulated in the
investment contracts or agreements but the unfair value appointed in the contract or agreement shall be entered
into the account book at the fair value.As for withdrawal basis of provision for impairment of investment real estates please refer to withdrawal method
for provision for impairment of fixed assets.
20. Fixed Assets
(1) Recognition Conditions
Fixed assets refers to the tangible assets that simultaneously possess the features as follows: (a) they are held for
the sake of producing commodities rendering labor service renting or business management; and (b) their useful
life is in excess of one fiscal year. The fixed assets are only recognized when the relevant economic benefits
probably flow in the Company and its cost could be reliable measured.
(2) Depreciation Method
Category of fixed assets Method Useful life Annual deprecation
87Changchai Company Limited Interim Report 2024
Housing and building Average method of
20-40 years 2.50%-5%
useful life
Machinery equipment Average method of
6-15 years 6.67%-16.67%
useful life
Transportation Average method of
5-10 years 10%-20%
equipment useful life
Average method of
Other equipment 5-10 years 10%-20%
useful life
(3) Recognition Basis Pricing and Depreciation Method of Fixed Assets by Finance Lease
The Company recognizes those meet with the following one or certain standards as the fixed assets by finance
lease:
1) The leasing contract had agreed that (or made the reasonable judgment according to the relevant conditions on
the lease starting date) when the lease term expires the ownership of leasing the fixed assets could be transferred
to the Company;
2) The Company owns the choosing right for purchasing and leasing the fixed assets with the set purchase price
which is estimated far lower than the fair value of the fixed assets by finance lease when executing the choosing
right so the Company could execute the choosing right reasonably on the lease starting date;
3) Even if the ownership of the fixed assets not be transferred the lease period is of 75% or above of the useful
life of the lease fixed assets;
4) The current value of the minimum lease payment on the lease starting date of the Company is equal to 90% or
above of the fair value of the lease fixed assets on the lease starting date; the current value of the minimum lease
receipts on the lease starting date of the leaser is equal to 90% or above of the fair value of the lease fixed assets
on the lease starting date;
5) The nature of the lease assets is special that only the Company could use it if not execute large transformation.
The fixed assets by finance lease should take the lower one between the fair value of the leasing assets and the
current value of the minimum lease payment on the lease starting date as the entry value. As for the minimum
lease payment which be regarded as the entry value of the long-term accounts payable its difference should be
regarded as the unrecognized financing expense. For the initial direct expenses occur in the lease negotiations and
the signing process of the lease contracts that attribute to the handling expenses counsel fees travel expenses and
stamp taxes of the lease items should be included in the charter-in assets value. The unrecognized financing
expenses should be amortized by adopting the actual interest rate during the period of the lease term.The fixed assets by finance lease shall adopt the same depreciation policy for self-owned fixed assets. If it is
reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term expires
the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will
obtain the ownership of the leased asset at the expiry of the lease term the leased asset shall be fully depreciated
over the shorter one of the lease term or its useful life
21. Construction in Progress
(1) Valuation of the progress in construction
Construction in progress shall be measured at actual cost. Self-operating projects shall be measured at direct
materials direct wages and direct construction fees; construction contract shall be measured at project price
88Changchai Company Limited Interim Report 2024
payable; project cost for plant engineering shall be recognized at value of equipments installed cost of installation
trail run of projects. Costs of construction in process also include borrowing costs and exchange gains and losses
which should be capitalized.
(2) Standardization on construction in process transferred into fixed assets and time point
The construction in process of which the fixed assets reach to the predicted condition for use shall carry forward
fixed assets on schedule. The one that has not audited the final accounting shall recognize the cost and make
depreciation in line with valuation value. The construction in process shall adjust the original valuation value at its
historical cost but not adjust the depreciation that has been made after auditing the final accounting.
22. Borrowing Costs
(1) Recognition principle of capitalization of borrowing costs
The borrowing costs shall include the interest on borrowings amortization of discounts or premiums on
borrowings ancillary expenses and exchange balance on foreign currency borrowings. Where the borrowing
costs occurred belong to specifically borrowed loan or general borrowing used for the acquisition and construction
of investment real estates and inventories over one year (including one year) shall be capitalized and record into
relevant assets cost. Other borrowing costs shall be recognized as expenses on the basis of the actual amount
incurred and shall be recorded into the current profits and losses. The borrowing costs shall not be capitalized
unless they simultaneously meet the following three requirements: (1) The asset disbursements have already
incurred; (2) The borrowing costs have already incurred; and (3) The acquisition and construction or production
activities which are necessary to prepare the asset for its intended use or sale have already started.
(2) The period of capitalization of borrowing costs
The borrowing costs arising from acquisition and construction of fixed assets investment real estates and
inventories if they meet the above-mentioned capitalization conditions the capitalization of the borrowing costs
shall be measured into asset cost before such assets reach to the intended use or sale Where acquisition and
construction of fixed assets investment real estates and inventories is interrupted abnormally and the interruption
period lasts for more than 3 months the capitalization of the borrowing costs shall be suspended and recorded
into the current expense till the acquisition and construction of the assets restarts. When the qualified asset is
ready for the intended use or sale the capitalization of the borrowing costs shall be ceased the borrowing costs
occurred later shall be included into the financial expense directly at the current period.
(3) Measurement method of capitalization amount of borrowing costs
As for specifically borrowed loans for the acquisition and construction or production of assets eligible for
capitalization the to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of
the specially borrowed loan at the present period minus the income of interests earned on the unused borrowing
loans as a deposit in the bank or as a temporary investment.Where a general borrowing is used for the acquisition and construction or production of assets eligible for
capitalization the enterprise shall calculate and determine the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The
capitalization rate shall be calculated and determined in light of the weighted average interest rate of the general
borrowing.
89Changchai Company Limited Interim Report 2024
23. Intangible Assets
(1) Useful Life and the Basis for its Determination Estimation Amortization Methodology or Review
Procedures
(1) Pricing method of intangible assets
Intangible assets purchased should take the actual payment and the relevant other expenses as the actual cost.For the intangible assets invested by the investors should be recognized the actual cost according to the value of
the investment contracts or agreements however for the value of the contracts or agreements is not fair the actual
cost should be recognized according to the fair value.For the intangible assets acquires from the exchange of the non-currency assets if own the commercial nature
should be recorded according to the fair value of the swap-out assets; for those not own the commercial nature
should be recorded according to the book value of the swap-out assets.For the intangible assets acquires from the debts reorganization should be recognized by the fair value.
(2) Amortization method and term of intangible assets
As for the intangible assets with limited service life which are amortized by straight-line method when it is
available for use within the service period shall be recorded into the current profits and losses. The Company
shall at least at the end of each year check the service life and the amortization method of intangible assets with
limited service life. When the service life and the amortization method of intangible assets are different from those
before the years and method of the amortization shall be changed.Intangible assets with uncertain service life may not be amortized. However the Company shall check the service
life of intangible assets with uncertain service life during each accounting period. Where there are evidences to
prove the intangible assets have limited service life it shall be estimated of its service life and be amortized
according to the above method mentioned.The rights to use land of the Company shall be amortized according to the rest service life.
(2) The Scope of R&D Expenditure Collection and the Related Accounting Treatment
The internal research and development projects of an enterprise shall be classified into research phase and
development phase: the term “research” refers to the creative and planned investigation to acquire and understand
new scientific or technological knowledge; the term “development” refers to the application of research
achievements and other knowledge to a certain plan or design prior to the commercial production or use so as to
produce any new material device or product or substantially improved material device and product.The Company collects the costs of the corresponding phases according to the above standard of classifying the
research phase and the development phase. The research expenditures for its internal research and development
projects of an enterprise shall be recorded into the profit or loss for the current period. The development costs for
its internal research and development projects of an enterprise may be capitalized when they satisfy the following
conditions simultaneously: it is feasible technically to finish intangible assets for use or sale; it is intended to
finish and use or sell the intangible assets; the usefulness of methods for intangible assets to generate economic
benefits shall be proved including being able to prove that there is a potential market for the products
manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally; it is able to finish the development of the intangible assets and able to
use or sell the intangible assets with the support of sufficient technologies financial resources and other resources;
the development costs of the intangible assets can be reliably measured.
90Changchai Company Limited Interim Report 2024
24. Impairment of Long-term Assets
For non-current financial Assets of fixed Assets projects under construction intangible Assets with limited
service life investing real estate with cost model long-term equity investment of subsidiaries cooperative
enterprises and joint ventures the Company should judge whether decrease in value exists on the date of balance
sheet. Recoverable amounts should be tested for decrease in value if it exists. Other intangible Assets of reputation
and uncertain service life and other non-accessible intangible assets should be tested for decrease in value no
matter whether it exists.If the recoverable amount is less than book value in impairment test results the provision for impairment of
differences should include in impairment loss. Recoverable amounts would be the higher of net value of asset fair
value deducting disposal charges or present value of predicted cash flow. Asset fair value should be determined
according to negotiated sales price of fair trade. If no sales agreement exists but with asset active market fair
value should be determined according to the Buyer’s price of the asset. If no sales agreement or asset active
market exists asset fair value could be acquired on the basis of best information available. Disposal expenses
include legal fees taxes cartage or other direct expenses of merchantable Assets related to asset disposal. Present
value of predicted asset cash flow should be determined by the proper discount rate according to Assets in service
and predicted cash flow of final disposal. Asset depreciation reserves should be calculated on the basis of single
Assets. If it is difficult to predict the recoverable amounts for single Assets recoverable amounts should be
determined according to the belonging asset group. Asset group is the minimum asset combination producing cash
flow independently.In impairment test book value of the business reputation in financial report should be shared to beneficial asset
group and asset group combination in collaboration of business merger. It is shown in the test that if recoverable
amounts of shared business reputation asset group or asset group combination are lower than book value it should
determine the impairment loss. Impairment loss amount should firstly be deducted and shared to the book value of
business reputation of asset group or asset group combination then deduct book value of all assets according to
proportions of other book value of above assets in asset group or asset group combination except business
reputation.After the asset impairment loss is determined recoverable value amounts would not be returned in future.
25. Long-term Deferred Expenses
Long-term deferred expanses of the Company shall be recorded in light of the actual expenditure and amortized
averagely within benefit period. In case of no benefit in the future accounting period the amortized value of such
project that fails to be amortized shall be transferred into the profits and losses of the current period.
26. Contract Liabilities
Contract liabilities refer to the Company’s obligations in transferring commodities or services to the client for the
received or predicted consideration. Contract assets and contract liabilities under the same contract shall be
presented based on the net amount.
91Changchai Company Limited Interim Report 2024
27. Employee Benefits
(1) Accounting Treatment of Short-term Compensation
Short-term compensation mainly including salary bonus allowances and subsidies employee services and
benefits medical insurance premiums birth insurance premium industrial injury insurance premium housing
fund labor union expenditure and personnel education fund non-monetary benefits etc. The short-term
compensation actually happened during the accounting period when the active staff offering the service for the
Company should be recognized as liabilities and is included in the current gains and losses or relevant assets cost.Of which the non-monetary benefits should be measured according to the fair value.
(2) Accounting Treatment of the Welfare after Demission
The Company classifies the welfare plans after demission into defined contribution plans and defined benefit
plans. Welfare plans after demission refers to the agreement on the welfare after demission reaches between the
Company and the employees or the regulations or methods formulated by the Company for providing the welfare
after demission for the employees. Of which defined contribution plans refers to the welfare plans after demission
that the Company no more undertake the further payment obligations after the payment of the fixed expenses for
the independent funds; defined benefit plans refers to the welfare plans after demission except for the defined
contribution plans.Defined contribution plans
During the accounting period that the Company providing the service for the employees the Company should
recognize the liabilities according to the deposited amount calculated by defined contribution plans and should be
included in the current gains and losses or the relevant assets cost.
(3) Accounting Treatment of the Demission Welfare
The Company should recognize the payroll payment liabilities occur from the demission welfare according to the
earlier date between the following two conditions and include which in the current gains and losses when
providing the demission welfare for the employees: the Company could not unilaterally withdraw the demission
welfare owning to the relieve plans of the labor relationship or reduction; when the Company recognizing the
costs or expenses related to the reorganization involves with the demission welfare payments.
28. Provisions
(1) Criteria of provisions
Only if the obligation pertinent to a contingencies shall be recognized as an estimated debts when the following
conditions are satisfied simultaneously:
1) That obligation is a current obligation of the Company;
2) It is likely to cause any economic benefit to flow out of the Company as a result of performance of the
obligation;
3) The amount of the obligation can be measured in a reliable way.
(2) Measurement of provisions
The Company shall measure the provisions in accordance with the best estimate of the necessary expenses for the
performance of the current obligation.The Company shall check the book value of the provisions on the Balance Sheet Date. If there is any conclusive
92Changchai Company Limited Interim Report 2024
evidence proving that the said book value can’t truly reflect the current best estimate the Company shall subject
to change make adjustment to carrying value to reflect the current best estimate.
29. Revenue
Accounting policies for recognition and measurement of revenue:
When the Company fulfills its due performance obligations (namely when the client obtains the control over
related commodities or services) revenues shall be recognized based on the obligation’s amortized transaction
price. Performance Obligation refers to the Company’s promise of transferring commodities or services that can
be clearly defined to the client. Transaction Price refers to the consideration amount duly charged by the Company
for transferring commodities or services to the client excluding any amount charged by the third party and any
amount predicted to be returned to the client. Control Over Relevant Commodities means that the use of
commodities can be controlled and almost all economic interests can be obtained.On the contract commencement day the Company shall evaluate the contract recognize individual performance
obligation and confirm that individual performance obligation is fulfilled in a certain period. When one of the
following conditions is met such performance obligation shall be deemed as fulfilled in a certain period and the
Company shall recognize it as revenue within a certain period according to the performance schedule: (1) the
client obtains and consumes the economic interests resulting from the Company’s performance of contract while
performing the contract; (2) the client is able to control the commodities under construction during the
performance; (3) commodities produced by the Company during the performance possess the irreplaceable
purpose and the Company has the right to charge all finished parts during the contract period; otherwise the
Company shall recognize the revenue when the client obtains the control over relevant commodities or services.The Company shall adopt the Input Method to determine the Performance Schedule. Namely the Performance
Schedule shall be determined according to the Company’s input for fulfilling performance obligations. When the
Performance Schedule cannot be reasonably determined and all resulting costs are predicted to be compensated
the Company shall recognize the revenue based on the resulting cost amount till the Performance Schedule can be
reasonably determined.When the contract involves two or more than two performance obligations the transaction price shall be
amortized to each single performance obligation on the contract commencement day according to the relative
proportion of the independent selling price of commodities or services under each single performance obligation.If any solid evidence proves that the contract discount or variable consideration only relates to one or more than
one (not all) performance obligation under the contract the Company shall amortize the contract discount or
variable consideration to one or more than one related performance obligations. Independent selling price refers to
the price adopted by the Company to independently sell commodities or services to the client. However
independent selling price cannot be directly observed. The Company shall estimate the independent selling price
by comprehensively considering all related information that can be reasonably obtained and maximally adopting
the observable input value.Variable Consideration
If any variable consideration exists in the contract the Company shall determine the optimal estimation of the
variable consideration based on the expected values or the most possible amount. The variable consideration’s
transaction price shall be included without exceeding the total revenue amount recognized without the risk of
significant restitution when all uncertainties are eliminated. On each balance sheet day the Company shall
re-estimate the variable consideration amount to be included in the transaction price.Consideration Payable to the Client
93Changchai Company Limited Interim Report 2024
If any consideration payable to the client exists in the contract the Company shall use such consideration to offset
the transaction price unless such consideration is paid for acquiring other clearly-defined commodities or services
from the client and write down the current revenue at the later time between the time of recognizing relevant
revenues and the time of paying (or promising the payment) the consideration to the client.Sales with the Quality Assurance
For sales with the Quality Assurance if the Quality Assurance involves another separate service except for the
guarantee of all sold commodities or services meeting all established standards the Quality Assurance shall
constitute a single Performance Obligation; otherwise the Company shall make corresponding accounting
treatment to the Quality Assurance according to ASBE No.13--Contingency.Main Responsibility Person/Agent
According to whether the control over commodities or services is obtained before they are transferred to the client
the Company can judge whether it is Main Responsibility Person or Agent based on its status during the
transaction. If the Company can control commodities or services before they are transferred to the client the
Company shall be Main Responsibility Person and revenues shall be recognized according to the total
consideration amount received or to be received; otherwise the Company shall be Agent and revenues shall be
recognized according to the commission or service fees predicted to be duly charged. However such amount shall
be determined based on the net amount after deducting other amounts payable to other related parties from the
total consideration received or to be duly received or the fixed commission amount or proportion.Specific methods
The specific methods of the Company's revenue recognition are as follows:
The sale contract between the Company and its customers usually contains only the performance obligation for
the transfer of goods which is satisfied at a point in time.The following requirements must be met to confirm the revenue of domestic products: The Company has
delivered the goods to the customer in accordance with the contract and the customer has accepted the goods. The
payment has been recovered or the receipt voucher has been obtained and the relevant economic benefits are
likely to flow in. The customer has obtained control of the relevant goods. The main risks and rewards of product
ownership have been transferred. The legal ownership of the goods has been transferred.The following requirements must be met to confirm the revenue of export products: The Company has declared
the products in accordance with the contract obtained the bills of lading and received the payment or obtained the
receipt voucher and the related economic benefits are likely to flow in. The main risks and rewards of product
ownership have been transferred. The legal ownership of the goods has been transferred.Interest Revenue
Interest Revenue shall be determined according to the time of the Company’s use of monetary capital and the
actual interest rate.
30. Contract Costs
(1) Costs from Acquiring Contract
If the incremental cost resulting from the Company’s acquiring of contract (namely costs merely resulting from
the acquiring of contract) is predicted to be retrieved it shall be recognized as an assets amortized by adopting
the same basis with the recognition of commodities or service revenues related to the assets and included into the
current profit and loss. If the assets’ amortization period does not exceed one year it shall be immediately
included into the current profit and loss. Other expenses resulting from the Company’s acquiring of contract shall
94Changchai Company Limited Interim Report 2024
also be included into the current profit and loss unless it is explicitly borne by the client.
(2) Costs from Executing Contract
The Company’s costs from executing contract is not covered by other ASBE except for Revenue Standards and
when the following situations are met such costs can be recognized as an assets: * the costs are directly related
to a current or predicted contract; * the costs increase the Company’s resources applied to fulfill performance
obligations in the future; * the costs are predicted to be retrieved. The recognized assets shall be amortized by
adopting the same basis with the recognition of commodities or service revenues related to the assets and included
into the current profit and loss.If the book value of contract costs is higher than the difference of the following two items corresponding
depreciation reserves shall be counted and withdrawn and it shall be recognized as the assets depreciation loss: *
the residual consideration predicted to be acquired by transferring commodities related to the assets; * the costs
predicted to occur due to the transfer of related commodities.If the difference between * and * is higher than the book value of contract costs due to any change in various
factors causing depreciation in previous periods it shall be restituted to the withdrawn assets depreciation reserves
and included in the current profit and loss. However the book value of restituted contract costs shall not exceed
the book value of the assets on the day of restitution based on the hypothesis that depreciation reserves are not
counted and withdrawn.
31. Government Grants
(1) Type
A government grant means the monetary or non-monetary assets obtained free by an enterprise from the
government. Government grants consist of the government grants pertinent to assets and government grants
pertinent to income according to the relevant government documents.For those the government documents not definite stipulate the assistance object the judgment basis of the
Company classifies the government grants pertinent to assets and government subsidies pertinent to income is:
whether are used for purchasing or constructing or for forming the long-term assets by other methods.
(2) Recognition of Government Subsidies
The government subsidies should be recognized only when meet with the attached conditions of the government
grants as well as could be acquired.If the government grants are the monetary assets should be measured according to the received or receivable
amount; and for the government grants are the non-monetary assets should be measured by fair value.
(3) Accounting Treatment
The government grants pertinent to assets shall be recognized as deferred income and included in the current
gains and losses or offset the book value of related assets within the useful lives of the relevant assets with a
reasonable and systematic method. Government grants pertinent to income used to compensate the relevant costs
expenses or losses of the Company in the subsequent period shall be recognized as deferred income and shall be
included in the current profit and loss during the period of confirming the relevant costs expenses or losses; those
used to compensate the relevant costs expenses or losses of the Company already happened shall be included in
the current gains and losses or used to offset relevant costs directly.For government grants that include both assets-related and income-related parts they should be distinguished
separately for accounting treatment; for government subsidies that are difficult to be distinguished they should be
classified as income-related.
95Changchai Company Limited Interim Report 2024
Government grants related to the daily activities of the Company shall be included into other income or used to
offset relevant costs by the nature of economic business; those unrelated shall be included into non-operating
income.The government grants recognized with relevant deferred income balance but need to return shall be used to offset
the book balance of relevant deferred income the excessive part shall be included in the current gains and losses
or adjusting the book value of assets for the government grants assets-related that offset the book value of relevant
assets when they are initially recognized; those belong to other cases shall be directly included in the current gains
and losses.
32. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Basis of recognizing the deferred income tax assets
According to the difference between the book value of the assets and liabilities and their tax basis a deferred tax
asset shall be measured in accord with the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled.The recognition of the deferred income tax assets is limited by the income tax payable that the Company probably
gains for deducting the deductible temporary differences. At the balance sheet date where there is strong evidence
showing that sufficient taxable profit will be available against which the deductible temporary difference can be
utilized the deferred tax asset unrecognized in prior period shall be recognized.The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that
sufficient taxable profit will not be available against which the deductible temporary difference can be utilized the
Company shall write down the carrying amount of deferred tax asset or reverse the amount written down later
when it’s probable that sufficient taxable profit will be available.
(2) Basis of recognizing the deferred income tax liabilities
According to the difference between the book value of the assets and liabilities and their tax basis A deferred tax
liability shall be measured in accord with the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled.
33. Lease
(1) Accounting treatment for leases as the lessee
On the beginning date of the lease term the Company will recognize the lease with a lease term not exceeding 12
months and exclude the purchase option as a short-term lease. Leases with lower value when a single leased asset
is a brand-new asset are identified as low-value asset leases. If the Company sublets or expects to sublet the leased
assets the original lease shall not be deemed as a low-value asset lease.The Company records the payments of short-term and low-value asset leases incurred during each period of the
lease term in the relevant asset costs or the profit or loss for the current period by the straight-line method.The Company will recognize right-of-use assets and lease liabilities on the inception date of the lease term
excluding the above short-term and low-value asset leases.* Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise:
A. the amount of the initial measurement of the lease liabilities;
B. any lease payments made at or before the commencement date less any lease incentives received;
96Changchai Company Limited Interim Report 2024
C. any initial direct costs incurred by the lessee;
D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of
the lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonably certain that
ownership of the leased asset(s) will be obtained at the end of the lease term the Company depreciates the leased
asset(s) over its/their remaining service life. If it is not reasonably certain that the ownership of the leasehold
property will be obtained at the end of the lease term the Company will depreciate the leased asset(s) over the
lease term or the remaining service life whichever is shorter.* Lease liabilities
At the commencement date the Company measures the lease liabilities at the present value of the lease payments
that are not paid at that date The Company uses the interest rate implicit in lease as the rate of discount when
calculating the present value of the lease payments. The incremental interest rate on borrowing of the lessee will
be used as the rate of discount if the interest rate implicit in lease cannot be determined. The difference between
the lease payment and its present value is regarded as an unrecognized financing expense. Interest expense is
recognized at the discount rate of the present value of the recognized lease payment during each period of the
lease term and is recorded in the profit and loss for the current period. Variable lease payments that are not
covered in the measurement of the lease liabilities are included in current profit or loss when actually incurred.After the commencement date if there is a change in the following items: (a) actual fixed payments; (b) amounts
expected to be payable under residual value guarantees; (c) an index or a rate used to determine lease payments;
(d) assessment result or exercise of purchase option extension option or termination option. the Company
remeasures the lease liabilities based on the present value of lease payments after changes and adjusts the
carrying amount of the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is reduced to
zero but there shall be a further reduction in the lease liabilities the remaining amount shall be recognized into
profit or loss.
(2) Accounting treatment of leases as the lessor
The Company as lessor
On the start date of the lease term the Company divides the lease that substantially transfers almost all risks and
rewards related to the ownership of the leased assets into finance leases except for operating leases.* Operating lease
The Company recognizes the lease payments receivable as rental earnings in each period within the lease term on
a straight-line basis. The initial direct costs related to the operating lease are capitalized amortized within the
lease term on the same basis as the recognition of rental earnings and included in the profit or loss for the current
period. Variable lease payments obtained by the Company in relation to operating leases that are not included in
the lease receivable are included in the profit or loss for the current period when they are actually incurred.* Financial lease
At the commencement date the Company recognizes the finance lease payment receivable based on the net
investment in the lease (sum of the present value of unguaranteed residual value and lease receipts that are not
received at the commencement date discounted by the interest rate implicit in the lease) and derecognizes assets
held under the finance lease. The Company calculates and recognizes interest income using the interest rate
implicit in the lease over the lease term.Variable lease payments not included in the measurement of the net investment in the lease are charged as profit or
loss in the periods in which they are incurred.
97Changchai Company Limited Interim Report 2024
34. Other Significant Accounting Policies and Accounting Estimates
The Company evaluates the important accounting estimates and key assumptions adopted on an ongoing basis
based on historical experience and other factors including reasonable expectations of future events. Important
accounting estimates and critical assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next fiscal year are listed as follows:
(1) Classification of financial assets
The significant judgments involved when the Company determines the classification of financial assets include
analysis of business models and contractual cash flow characteristics. The Company determines the business
model for managing financial assets at the level of the financial asset portfolio taking into account factors such as
the approach of evaluating and reporting the performance of financial assets to key management personnel the
risks affecting the performance of financial assets and the manner in which they are managed and way in which
the relevant business management personnel are compensated.The following main judgments exist in assessing whether the contractual cash flows of financial assets are
consistent with the basic lending arrangements:
Whether the time distribution or amount of the principal amount during the duration may change due to early
repayment or for other reasons; whether the interest includes only the time value of money credit risk other basic
lending risks and consideration against costs and profits. For example whether the amount of early repayment
reflects only the outstanding principal and interest based on the outstanding principal as well as reasonable
compensation paid for early termination of the contract.
(2) Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable using the exposure to default risk of
accounts receivable and the expected credit loss ratio and determines the expected credit loss ratio based on the
probability of default and the default loss ratio. When determining the expected credit loss ratio the Company
uses data such as internal historical credit loss experience and adjusts historical data to take into account current
conditions and forward-looking information. When considering forward-looking information the Company uses
indicators such as the risk of economic downturn and changes in the external market environment technological
environment and customer profile. The Company regularly monitors and reviews the assumptions related to the
calculation of expected credit losses.
(3) Inventory falling price reserves
The Company follows the inventory accounting policy and carries out measurement based on which is smaller
between the cost and the net realizable value. If the cost of inventories is higher than its net realizable value then
the inventory falling prices reserves were implemented. The impairment of inventories to net realizable value is
based on an assessment of the marketability of the inventories and their net realizable value. The management
shall determine the impairment of inventories after obtaining reliable evidence while taking into account the
purpose of holding inventories the effect of items after the balance sheet date and other factors. Differences
between actual results and original estimates will affect the carrying value of inventories and the provision or
reversal of reverses for falling prices of inventories in the period in which the estimates are changed.
(4) Determination of fair value of unlisted equity investment
The fair value of unlisted equity investment is the expected future cash flows discounted at the current discount
rate for items with similar terms and risk characteristics. Such valuation requires the Company to estimate
expected future cash flows and discount rates and is therefore subject to uncertainty. Under limited circumstances
if the information used to determine fair value is insufficient or if the range of possible estimates of fair value is
98Changchai Company Limited Interim Report 2024
wide and the cost represents the best estimate of fair value within that range the cost may represent its appropriate
estimate of fair value within that range of distribution.
(5) Reserves for long-term assets impairment
The Company determines at the balance sheet date whether there is any indication that a non-current asset other
than a financial asset may be impaired. For intangible assets with an uncertain useful life impairment tests shall
be conducted when there is an indication of impairment besides the annual impairment test. Other non-current
assets other than financial assets shall be tested for impairment when there is an indication that the carrying
amount is irrecoverable.An impairment is indicated when the carrying amount of an asset or asset group is greater than the recoverable
amount which is the higher of the fair value minus disposal expenses and the present value of estimated future
cash flows.The net value of the fair value minus disposal expenses is determined by referring to the negotiable sale price or
observable market price of similar assets in a fair transaction and deducting incremental costs directly attributable
to the disposal of the asset.Estimating the present value of future cash flows requires significant judgments with respect to the production
volume of the asset (or asset group) the selling price the related operating costs and the discount rate used in
calculating the present value. The Company uses all available relevant information in estimating recoverable
amounts including projections of volumes selling prices and related operating costs based on reasonable and
supportable assumptions.
(6) Depreciation and amortization
The Company depreciates and amortizes investment properties fixed assets and intangible assets on a straight-line
basis within their service lives after taking into account their residual values. The Company regularly reviews
service lives to determine the amount of depreciation and amortization expenses to be included in each reporting
period. The service life is determined by the Company based on past experience with similar assets and expected
technological updates. Depreciation and amortization expenses will be adjusted in the future period if there is a
significant change in previous estimates.
(7) Deferred income tax assets
To the extent that it is probable that sufficient taxable profit will be available to offset the losses the Company
recognizes deferred income tax assets for all unused tax losses. This requires the Company's management to use
many judgments to estimate the timing and amount of future taxable profits taking into account tax planning
strategies so as to determine the amount of deferred income tax assets to be recognized.
(8) Income tax
In the normal operating activities of the Company the ultimate tax treatment and calculation of certain
transactions are subject to certain uncertainties. Whether some items can be disbursed before tax requires the
approval of the tax authorities. If the final determination of these tax matters differs from the amounts initially
estimated the difference will have an impact on current and deferred income taxes in the period in which they are
finally determined.
35. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□ Applicable √ Not applicable
99Changchai Company Limited Interim Report 2024
(2) Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of
the NewAccounting Standards Implemented since 2024
□ Applicable √ Not applicable
VI. Taxation
1. Main Taxes and Tax Rate
Category of taxes Tax basis Tax rate
VAT Payable to sales revenue 13% 9% 6% 5%
Urban maintenance and Tax paid in accordance with the tax
Taxable turnover amount
construction tax regulations of tax units location
Enterprise income tax Taxable income 25%、15%、5%
Education surcharge Taxable turnover amount 5%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Changchai Company Limited 15%
Changchai Wanzhou Diesel Engine Co. Ltd. 15%
Changzhou Changchai Benniu Diesel Engine Fittings
25%
Co. Ltd.Changzhou Horizon Investment Co. Ltd. 25%
Changzhou Changchai Horizon Agricultural
25%
Equipment Co. Ltd.Changzhou Fuji Changchai Robin Gasoline Engine
15%
Co. Ltd.Jiangsu Changchai Machinery Co. Ltd. 25%
Changzhou Xingsheng Real Estate Management Co.
5%
Ltd.Zhenjiang Siyang Diesel Engine Manufacturing Co.
15%
Ltd.
2. Tax Preference
On 30 November 2021 the Company obtained the Certificates for High-tech Enterprises again and
it still enjoys 15-percent preferential rate for corporate income tax during the Reporting Period; the
Company’s controlling subsidiary-Changchai Wanzhou Diesel Engine Co. Ltd. the controlling
subsidiary company shall pay the corporate income tax at tax rate 15% from 1 January 2011 to 31
December 2030 in accordance with the Notice of the Ministry of Finance the General
100Changchai Company Limited Interim Report 2024
Administration of Customs of PRC and the National Administration of Taxation about the
Preferential Tax Policies for the Western Development and Ministry of Finance Announcement No.
23 [2020] Announcement of the Ministry of Finance the State Administration of Taxation and the
National Development and Reform Commission on Continuing the Enterprise Income Tax Policy
for the Great Western Development. On 6 November 2023 the wholly-owned subsidiary
Changzhou Fuji Changchai Robin Gasoline Engine Co. Ltd. obtained the "High-tech Enterprise
Certificate" and enjoyed a 15% preferential corporate income tax rate during the Reporting Period;
The wholly-owned subsidiary Changzhou Xingsheng Real Estate Management Co. Ltd. is eligible
small enterprise with low profits and shall pay the corporate income tax at tax rate 5% for small
enterprises with low profits during the Reporting Period; the subsidiary Zhenjiang Siyang Diesel
Engine Manufacturing Co. Ltd. obtained the "High-tech Enterprise Certificate" and enjoyed a 15%
preferential corporate income tax rate during the Reporting Period.VII. Notes to Major Items in the Consolidated Financial Statements of the Company
1. Monetary Assets
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 146931.23 157238.05
Bank deposits 679526223.62 999604998.68
Other monetary assets 112246945.05 84105730.14
Total 791920099.90 1083867966.87
Other notes: At the period-end the restricted monetary assets of the Company was RMB108979912.31 of which
RMB107195110.82 was the cash deposit for bank acceptance bills RMB897966.00 was cash deposit for L/G
and RMB886835.49 was cash deposit for environment.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value
402900783.53225641429.94
through profit or loss
Of which:
Stocks 50661877.00 85295021.00
Financial products 352238906.53 140346408.94
Of which:
Total 402900783.53 225641429.94
101Changchai Company Limited Interim Report 2024
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 115592564.84 161632567.94
Total 115592564.84 161632567.94
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt Bad debtprovision Carrying amount provision
Category Carryi CarryWithdr ng Withdr ing
Amou Propor Amou awal value Amoun Proport Amoun awal value
nt tion nt propor t ion t proport
tion ion
Notes
receivable for
which bad
debt 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
provision
separately
accrued
Of which:
Notes
receivable for
which bad 11559 100.00 11559 16163 100.00 1616debt 2564. % 0.00 0.00% 2564. 2567.9 % 0.00 0.00% 3256provision 84 84 4 7.94
accrued by
group
Of which:
Bank 11559 11559 16163 1616
acceptance 2564. 100.00% 0.00 0.00% 2564. 2567.9
100.00
% 0.00 0.00% 3256bills 84 84 4 7.94
11559 100.00 11559 16163 100.00 1616Total 2564. % 0.00 0.00% 2564. 2567.9 % 0.00 0.00% 325684 84 4 7.94
If adopting the general mode of expected credit loss to withdraw bad debt provision of notes receivable:
□Applicable √ Not applicable
102Changchai Company Limited Interim Report 2024
(3) Notes Receivable Pledged by the Company at the Period-end: None
(4) Notes Receivable which Had Endorsed by the Company or had Discounted but had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination Amount of not terminated
Item
at the period-end recognition at the period-end
Bank acceptance bill 0.00 46144123.81
Total 0.00 46144123.81
4. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within 1 year (including 1 year) 1197542854.82 313597375.85
1 to 2 years 2622686.63 1873298.19
2 to 3 years 4709550.82 4436548.28
Over 3 years 144681837.96 144403241.11
3 to 4 years 5446856.35 5278022.33
4 to 5 years 1895735.78 1815570.52
Over 5 years 137339245.83 137309648.26
Total 1349556930.23 464310463.43
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying Bad debt Carrying Bad debt
amount provision amount provision
Category Withd Carryi Withd Carryin
Amou Propo Amou rawal ngvalue Amou Propor Amou rawal g value
nt rtion nt propo nt tion nt propor
rtion tion
Accounts
receivable
withdrawal of 3380 3380 3380 33805 100.0
Bad debt 5182. 2.50% 5182. 100% 0.00 5182. 7.28% 182.7 0.00
provision 0%71 71 71 1
separately
accrued
103Changchai Company Limited Interim Report 2024
Of which:
Accounts
receivable 1315 1318 1183 4305 11396
withdrawal of 97.50 10.02 92.72 26.47 316543
bad debt 7517 0259 9491 0528 2120.% % % % 159.91
provision of by 47.52 4.96 52.56 0.72 81
group
Of which:
Accounts
receivable for
which bad debt 1315 1318 1183 4305 11396
97.5010.0292.7226.47316543
provision 7517 0259 9491 0528 2120.%%%%159.91
accrued by 47.52 4.96 52.56 0.72 81
credit risk
features group
134916561183464314776
100.012.27100.0031.83316543
Total 5569 0777 9491 1046 7303.
0%%%%159.91
30.237.6752.563.4352
Individual provision for bad debts: 33805182.71 yuan including 31609904.23 yuan for large impairment items
as follows:
Unit: RMB
Beginning balance Ending balance
Name Carrying Bad debt Carrying Bad debt Withdrawal Reason
amount provision amount provision proportion forwithdraw
Difficult
Customer 1 1470110.64 1470110.64 1470110.64 1470110.64 100.00%
to recover
Difficult
Customer 2 1902326.58 1902326.58 1902326.58 1902326.58 100.00%
to recover
Difficult
Customer 3 6215662.64 6215662.64 6215662.64 6215662.64 100.00%
to recover
Difficult
Customer 4 2797123.26 2797123.26 2797123.26 2797123.26 100.00%
to recover
Difficult
Customer 5 2322278.50 2322278.50 2322278.50 2322278.50 100.00%
to recover
Difficult
Customer 6 2584805.83 2584805.83 2584805.83 2584805.83 100.00%
to recover
Difficult
Customer 7 1726935.65 1726935.65 1726935.65 1726935.65 100.00%
to recover
Difficult
Customer 8 2025880.18 2025880.18 2025880.18 2025880.18 100.00%
to recover
104Changchai Company Limited Interim Report 2024
Difficult
Customer 9 5972101.90 5972101.90 5972101.90 5972101.90 100.00%
to recover
Customer Difficult
4592679.054592679.054592679.054592679.05100.00%
10 to recover
Total 31609904.23 31609904.23 31609904.23 31609904.23 -- --
Provision for bad debts by combination: provision for bad debts by combination based on credit risk
characteristics of 131802594.96 yuan
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 1197542854.82 23950857.10 2.00%
1 to 2 years 2622686.63 131134.33 5.00%
2 to 3 years 4246306.96 636946.04 15.00%
3 to 4 years 5446746.35 1634023.91 30.00%
4 to 5 years 1108797.95 665278.77 60.00%
Over 5 years 104784354.81 104784354.81 100.00%
Total 1315751747.52 131802594.96 --
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□ Applicable √ Not applicable
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Category Beginningbalance Reversed or Ending balanceWithdrawal recovered Verification Others
Bad debt
provision
separately 33805182.71 33805182.71
accrued
Withdrawal
of bad debt
provision by 113962120.81 17840474.15 131802594.96
group
Total 147767303.52 17840474.15 165607777.67
Of which bad debt provision reversed or recovered with significant amount in the Reporting Period: No.
105Changchai Company Limited Interim Report 2024
(4) There Were No Accounts Receivable with Actual Verification during the Reporting Period.
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected according to
Arrears Party
Unit: RMB
Ending balance
Proportion to of bad debt
Name of the Ending balance Ending balance
Ending balance total ending provision of
entity of accounts of contract
of accounts balance of accounts
receivable assets receivable and accounts receivable andcontract assets receivable and impairment
contract assets provision for
contract assets
Customer 1 646622440.97 0.00 646622440.97 47.91% 12932448.82
Customer 2 117517494.00 0.00 117517494.00 8.71% 2350349.88
Customer 3 70421083.72 0.00 70421083.72 5.22% 1408421.67
Customer 4 57254239.63 0.00 57254239.63 4.24% 1145084.79
Customer 5 48331650.00 0.00 48331650.00 3.58% 966633.00
Total 940146908.32 0.00 940146908.32 69.66% 18802938.16
5. Accounts Receivable Financing
(1) Accounts Receivable Financing Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bills 12282312.54 195875948.92
Total 12282312.54 195875948.92
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt Carrying amount Bad debt
Catego provision provision
ry Withdr Carryin Withdr Carryin
Amoun Proport Amoun awal g value Amoun Proport Amoun awal g value
t ion t proport t ion t proport
ion ion
Bad
debt 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
provisi
on
106Changchai Company Limited Interim Report 2024
separat
ely
accrued
Of
which:
Bad
debt
provisi
12282 100.00 19587 19587on 312.54 % 0.00 0.00%
12282100.00
312.545948.9%0.000.00%5948.9
accrued 2 2
by
group
Of
which:
Bank
accepta 12282 100.00 12282 19587 100.00 19587
nce 312.54 % 0.00 0.00% 312.54 5948.9 % 0.00 0.00% 5948.9
bills 2 2
1958719587
Total 12282 100.00 0.00 0.00% 12282 100.00312.54 % 312.54 5948.9 % 0.00 0.00% 5948.92 2
(3) Notes Receivable Pledged by the Company at the Period-end: None
(4) Accounts receivable financing which had endorsed by the Company or had discounted but had not due
at the period-end
Unit: RMB
Amount of recognition termination Amount of not terminated
Category
at the period-end recognition at the period-end
Bank acceptance bill 86540386.86
Total 86540386.86
6. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other receivables 2566508.89 49699753.61
Total 2566508.89 49699753.61
107Changchai Company Limited Interim Report 2024
(1) Other Receivables
1) Other Receivables Classified by Accounts Nature
Unit: RMB
Nature Ending carrying value Beginning carrying value
Margin and cash pledge 625636.85 595723.55
Intercourse funds 22723784.78 69845564.95
Petty cash and borrowings by
902563.54922370.54
employees
Other 13614317.60 13638079.94
Total 37866302.77 85001738.98
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within 1 year (including 1 year) 6969619.41 56704032.54
1 to 2 years 2646786.23 115776.00
2 to 3 years 67513.23 12802.00
Over 3 years 28182383.90 28169128.44
3 to 4 years 31232.23 30000.00
4 to 5 years 12023.23
Over 5 years 28139128.44 28139128.44
Total 37866302.77 85001738.98
3) Disclosure by Withdrawal Methods for Bad Debts
√Applicable □Not applicable
Provision for bad debts based on general model of expected credit losses
Unit: RMB
First stage Second stage Third stage
Expected loss in Expected loss in
Bad debt provision Expected credit the duration (credit the duration Total
loss of the next
impairment not (credit impairment
12 months
occurred) occurred)
Balance of 1 January
211671.732715705.9932374607.6535301985.37
2024
108Changchai Company Limited Interim Report 2024
Balance of 1 January
2024 in the Current
Period
--Transfer to Second
stage
-- Transfer to Third stage
-- Reverse to Second
stage
-- Reverse to First stage
Withdrawal of the
-2297.69106.20-2191.49
Current Period
Reversal of the Current
Period
Write-offs of the Current
Period
Verification of the
Current Period
Other changes
Balance of 30 June 2024 209374.04 2715812.19 32374607.65 35299793.88
The basis for the division of each stage and the withdrawal proportion of bad debt provision: None
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ Not applicable
4) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Category Beginning Endingbalance Withdrawal Reversed or Charged-off Other balancerecovered /Written-off s
Bad debt
provision
separately 5282163.35 5282163.35
accrued
Withdrawal of
bad debt
provision by 30019822.02 19588.00 21779.49 30017630.53
group
Total 35301985.37 19588.00 21779.49 35299793.88
109Changchai Company Limited Interim Report 2024
5) There Were No Particulars of the Actual Verification of Other Receivables during the Reporting Period
6) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to
total ending Ending
Name of the entity Nature Ending balance Aging balance of balance of bad
other debt provision
receivables %
Changzhou Compressor Intercourse
2940000.00 Over 5 years 7.76% 2940000.00
Factory funds
Changchai Group Imp. Intercourse
2853188.02 Over 5 years 7.53% 2853188.02
& Exp. Co. Ltd. funds
Changzhou New
Intercourse
District Accounting 1626483.25 Over 5 years 4.29% 1626483.25
funds
Center
Changchai Group Intercourse
1128676.16 Over 5 years 2.98% 1128676.16
Settlement Center funds
Chuangye Diesel Intercourse
Engine Workshop funds 1000000.00 Over 5 years 2.64% 1000000.00
Total 9548347.43 25.20% 9548347.43
7. Prepayments
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 13280773.47 91.95% 11196498.47 90.78%
1 to 2 years 865236.33 5.99% 840617.01 6.82%
2 to 3 years 291256.36 2.02% 289345.37 2.35%
Over 3 years 6850.00 0.05% 6850.00 0.05%
Total 14444116.16 -- 12333310.85 --
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time: There
was no prepayment with significant amount aging over one year as of the period-end.
(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target
At the period-end the total top 5 of the ending balance of the prepayments collected according to the prepayment
110Changchai Company Limited Interim Report 2024
target was RMB8326500 accounting for 57.65% of the total ending balance of prepayments.
8. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
No
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Depreciation Depreciation
reserves of reserves of
inventories inventories
Item Carrying or Carrying Carrying or
amount impairment value amount impairment
Carrying
provision for provision for value
contract contract
performance performance
costs costs
Raw 236679735. 231420008.
5259727.39199751010.7529878.82192221131.
materials 80 41 25 43
Materials
14289320.014289320.0
processed on 0.00 12422107.0 0.00 12422107.0
9922
commission
Goods in 74393358.2 67807625.7
6585732.4690202210.06761129.1483441080.9
process 1 5 5 1
Finished 330693761. 27731258.6 302962502. 527412149. 27690142.4 499722006.goods 05 7 38 21 2 79
Low priced
and easily 3235562.29 0.00 3235562.29 1413859.53 0.00 1413859.53
worn articles
659291737.39576718.5619715018.
Total 831201336. 41981150.3 789220185.
4429206868
(2) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance Costs
Unit: RMB
Increase Decrease
Beginning
Item Transferred-ba
balance Withdrawal Others ck or Other
Ending balance
charged-off s
Raw materials 7529878.82 156525.32 2426676.75 5259727.39
111Changchai Company Limited Interim Report 2024
Goods in
6761129.14175396.686585732.46
process
Finished goods 27690142.42 203470.48 162354.23 27731258.67
Total 41981150.38 359995.80 2764427.66 39576718.52
(3) There Was No Capitalized Borrowing Expense in the Ending Balance of Inventories.
(4) There Was No Inventory Pledged for Guarantee at the Period-end.
9. Held-for-sale Assets
Unit: RMB
Estimate Estimate
Item Ending book Impairment Ending bookbalance allowance value Fair value
d d
disposal disposal
cost time
Houses and
buildings 2725225.86 2725225.86 75721813.00
Machinery
equipment 200020.98 200020.98 10349066.00
Other
equipment 26204.27 26204.27 1433792.00
Total 2951451.11 2951451.11 87504671.00
10. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Investments in debt obligations
0.0040773509.75
due within one year
Total 0.00 40773509.75
(1) Investments in Debt Obligations Due within One Year
√Applicable □ Not applicable
1）Investments in Debt Obligations Due within One Year
Unit: RMB
Ending balance Beginning balance
Group name Falling FallingCarrying Carrying Carrying Carrying
price price
amount value amount value
reserves reserves
Three-year fixed 0.00 0.00 40773509.75 40773509.75
112Changchai Company Limited Interim Report 2024
term deposit
Total 0.00 0.00 40773509.75 40773509.75
11. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
The VAT tax credits 13195639.44 19940871.92
Prepaid corporate income tax 547841.16 908233.33
Prepaid expense 23222.29 61399.59
Total 13766702.89 20910504.84
12. Other Equity Instrument Investment
Unit: RMB
Reason
Accumul Accumul for
Gains Losses ative ative assigning
recorded recorded gains losses to
in other in other recorded recorded Dividend measure
Beginnin comprehe comprehe in other in other
income in fair
Item g balance nsive nsive comprehe comprehe
recognize Ending value of
income in income in nsive nsive d in balance which
the the income in income in current changes
current current the the year included
period period current current other
period period comprehensive
income
Changzho
u
Synergeti
c
Non-tradi
Innovatio
4184570 3184570 4184570 ng equity
n Private
25.67 25.67 25.67 investme
Equity
nt
Fund
(Limited
Partnershi
p)
Other Non-tradi
equity 5510310 5204400 4144170 1099800 4989870 ng equity
instrumen 00.00 0.00 00.00 0.00 00.00 investme
t nt
113Changchai Company Limited Interim Report 2024
investme
nt
measured
by fair
value
96948805204400732874010998009174440
Total
25.670.0025.670.0025.67
Non-trading equity instrument investment disclosed by category
Unit: RMB
Reason for
assigning to
Reason for
Amount of measure by
other
other fair value of
Dividend comprehensi
Accumulativ Accumulativ comprehensi which
Item income ve income
e gains e losses ve transferred changes be
recognized transferred to
to retained included to
retained
earnings other
earnings
comprehensi
ve income
Non-trading
Foton Motor 283341000.equity
Co. Ltd. 00
investment
Non-trading
Bank of 10998000.0 131076000.equity
Jiangsu 0 00
investment
Changzhou
Synergetic
Innovation Non-trading
318457025.
Private equity
67
Equity Fund investment
(Limited
Partnership)
Other notes:
The corporate securities of accommodation business still on lending at the period-end: 1777600 shares of Foton
Motor Co. Ltd.
13. Long-term Equity Investment
Unit: RMB
Invest Begin Begin Increase/decrease Endin Endin
ees ning ning Addit Redu Gain Adjus Chan Cash Withd Other g g
114Changchai Company Limited Interim Report 2024
balan balan ional ced or tment ges in bonus rawal balan balan
ce ce ofdepre invest invest loss of other or of ce ce of
(carry ciatio ment ment recog other equity profit depre (carry depre
ing n nized comp annou ciatio ing ciatio
value) reserv under rehen nced n value) n
es
the sive to reserv reserv
equity incom issue es es
metho e
d
I. Joint venture
Subto
tal 0.00 0.00 0.00 0.00
II. Associated enterprises
Beijin
g
Tsing
hua
Indust
rial
44184418
Invest 0.00 0.00
2.502.50
ment
Mana
geme
nt
Co.Ltd.Subto 4418 4418
0.000.00
tal 2.50 2.50
44184418
Total 0.00 0.002.50 2.50
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□ Applicable √ Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment
tests in prior years or external information: Not applicable
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and
the actual situation of those years: Not applicable
14. Other Non-current Financial Assets
Unit: RMB
115Changchai Company Limited Interim Report 2024
Item Ending balance Beginning balance
Jiangsu Horizon New Energy Technology
412914576.80412914576.80
Co. Ltd.Total 412914576.80 412914576.80
15. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
Item Houses and buildings Total
I. Original carrying value
1. Beginning balance 93077479.52 93077479.52
2. Increased amount of the period
(1) Outsourcing
(2) Transfer from inventories/fixed
assets/construction in progress
(3) Enterprise combination increase
3. Decreased amount of the period
(1) Disposal
(2) Other transfer
4. Ending balance 93077479.52 93077479.52
II. Accumulative depreciation and
accumulative amortization
1. Beginning balance 53239921.41 53239921.41
2. Increased amount of the period 1048356.78 1048356.78
(1) Withdrawal or amortization 1048356.78 1048356.78
3. Decreased amount of the period
(1) Disposal
(2) Other transfer
4. Ending balance 54288278.19 54288278.19
III. Depreciation reserves
1. Beginning balance
2. Increased amount of the period
(1) Withdrawal
116Changchai Company Limited Interim Report 2024
3. Decreased amount of the period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 38789201.33 38789201.33
2. Beginning carrying value 39837558.11 39837558.11
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□ Applicable √ Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment
tests in prior years or external information: Not applicable
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and
the actual situation of those years: Not applicable
16. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 637435729.73 675596920.95
Disposal of fixed assets
Total 637435729.73 675596920.95
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Other
Item Total
buildings equipment equipment equipment
I. Original
carrying value
1. Beginning
683973527.801117118836.8916527248.9361820174.731879439788.35
balance
2. Increased
amount of the 2418461.01 5309.73 321824.49 2745595.23
period
(1) Purchase 5309.73 43595.00 48904.73
117Changchai Company Limited Interim Report 2024
(2) Transfer
from
2418461.01278229.492696690.50
construction in
progress
(3) Enterprise
combination
increase
3. Decreased
amount of the 48062644.51 20515448.25 169264.00 1078316.68 69825673.44
period
(1) Disposal or
9343083.81516924.989860008.79
scrap
(2) Classified as
held-for-sale 48062644.51 11172364.44 169264.00 561391.70 59965664.65
assets
4. Ending
635910883.291099021849.6516363294.6661063682.541812359710.14
balance
II.Accumulative
depreciation
1. Beginning
331778938.87822480700.9610101717.8039184289.071203545646.70
balance
2. Increased
amount of the 10635019.26 23789836.43 699796.64 2799499.71 37924152.04
period
(1) Withdrawal 10635019.26 23789836.43 699796.64 2799499.71 37924152.04
3. Decreased
amount of the 45337418.65 20292066.44 169264.00 1044289.94 66843039.03
period
(1) Disposal or
9319722.98509102.519828825.49
scrap
(2) Classified as
held-for-sale 45337418.65 10972343.46 169264.00 535187.43 57014213.54
assets
4. Ending
297076539.48825978470.9510632250.4440939498.841174626759.71
balance
III.Depreciation
reserves
1. Beginning
297220.70297220.70
balance
118Changchai Company Limited Interim Report 2024
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal or
scrap
4. Ending
297220.70297220.70
balance
IV. Carrying
value
1. Ending
338834343.81272746158.005731044.2220124183.70637435729.73
carrying value
2. Beginning
352194588.93294340915.236425531.1322635885.66675596920.95
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original Accumulative Depreciation
Item Carrying value Note
carrying value depreciation reserves
Machinery
309407.5012186.80297220.70
equipment
17. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 4308776.18 4253721.78
Engineering materials 21900.40 21900.40
Total 4330676.58 4275622.18
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item
Carrying Depreciatio Carrying Carrying Depreciati Carrying
119Changchai Company Limited Interim Report 2024
amount n reserves value amount on reserves value
Innovation
capacity
construction
981532.17981532.17981532.17981532.17
of
technology
center
Equipment to
be installed
3327244.013327244.013272189.613272189.61
and payment
for projects
Total 4308776.18 4308776.18 4253721.78 4253721.78
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
which: Capita
Accu
Amou lizatio
mulate
nt of n rate
Transf Other d
Begin Increa Endin capital of Capita
erred decrea Job amoun
Budge ning sed g ized interes l
Item in sed sched t of
t balanc amoun balanc interes ts for resour
fixed amoun ule interes
e t e ts for the ces
assets t t
the Report
capital
Report ing
ization
ing Period
Period
Innov
ation
capaci
ty Self-ra
constr 9606
6200. 9815 9815 Compl
ised
and
uction 00 32.17 32.17 eted raised
of funds
techno
logy
center
9606
Total 6200. 9815 9815
0032.1732.17
120Changchai Company Limited Interim Report 2024
(3) Impairment Test of Construction in Progress
□Applicable √ Not applicable
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Carrying Impairment Carryingamount provision value amount provision value
Engineerin
21900.4021900.4021900.4021900.40
g materials
Total 21900.40 21900.40 21900.40 21900.40
18. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Trademark use
Item Land use right Software License fee Total
right
I. Original carrying
value
1. Beginning balance 205187775.71 20419604.15 5538000.00 1650973.47 232796353.33
2. Increased amount of
the period
(1) Purchase
(2) Internal R&D
(3) Business
combination increase
3. Decreased amount of
the period
(1) Disposal
4. Ending balance 205187775.71 20419604.15 5538000.00 1650973.47 232796353.33
II. Accumulated
amortization
1. Beginning balance 63473422.16 16541171.87 3800133.10 523440.52 84338167.65
2. Increased amount of
1980481.75708456.08274399.9883520.963046858.77
the period
121Changchai Company Limited Interim Report 2024
(1) Withdrawal 1980481.75 708456.08 274399.98 83520.96 3046858.77
3. Decreased amount of
the period
(1) Disposal
4. Ending balance 65453903.91 17249627.95 4074533.08 606961.48 87385026.42
III. Depreciation
reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
3. Decreased amount of
the period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
139733871.803169976.201463466.921044011.99145411326.91
value
2. Beginning carrying
141714353.553878432.281737866.901127532.95148458185.68
value
19. Long-term Prepaid Expenses
Unit: RMB
Beginning Amortized Ending
Item Increase Decrease
balance amount balance
Trademark renewal
268208.1231831.6833226.81266812.99
fee
External power line
2754000.00206615.332547384.67
access project
Processing reserved
floor paving and
5205750.54260287.504945463.04
lighting installation
works
Total 8227958.66 31831.68 500129.64 7759660.70
122Changchai Company Limited Interim Report 2024
20. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible DeductibleDeferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Bad debt provision 24153483.66 3623022.55 6427652.90 967779.48
Inventory falling
2707033.40506633.202707033.40506633.20
price reserves
Impairment of fixed
297220.7044583.11297220.7044583.11
assets
Total 27157737.76 4174238.86 9431907.00 1518995.79
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Assets evaluation
appreciation for
business
5489891.06823483.655489891.06823483.65
combination not
under the same
control
Changes of fair
value of other
994680304.41154234538.201102931935.12171019971.87
equity instrument
investments
Total 1000170195.47 155058021.85 1108421826.18 171843455.52
(3) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible loss 137917562.93 137917562.93
Bad debt provision 176754087.89 176641635.99
123Changchai Company Limited Interim Report 2024
Falling price reserves of
36869685.1239274116.98
inventories
Total 351541335.94 353833315.90
(4) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Note
20243605384.253605384.25
20255250820.815250820.81
20269546495.239546495.23
202768877350.7468877350.74
202850637511.9050637511.90
Total 137917562.93 137917562.93
21. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Depreciati DepreciatiCarrying Carrying
on Carrying value on Carrying value
amount amount
reserves reserves
Advances
payment of 830991.15 830991.15 2578776.77 2578776.77
equipments
Total 830991.15 830991.15 2578776.77 2578776.77
22. Assets with Restricted Ownership or Right of Use
Unit: RMB
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of
amount value restriction restriction amount value restriction restriction
Bank Bank
Monetary acceptanc acceptanc
funds -- e deposit e deposit
other 1089799 1089799
Occupied environm 7623844 7623844 Occupiedas cash as cash environm
monetary 12.31 12.31 deposit ental 3.41 3.41 deposit ental
funds performa performance bond nce bond
etc. etc.Fixed ass 1245851 1245851 Mortgage Mortgage 1332812 1332812 Mortgage Mortgage
ets – ho .51 .51 d d for .48 .48 d d for
uses and issuing issuing
124Changchai Company Limited Interim Report 2024
building bank bank
s acceptanc acceptanc
e bills e bills
Mortgage Mortgage
Intangible d for d for
assets -- 828429.6 828429.6 Mortgage issuing 847162.2 847162.2 Mortgage issuing
land use 5 5 d bank 8 8 d bank
rights acceptanc acceptanc
e bills e bills
Fixed ass Mortgage Mortgage
ets -- ma d for d for
chinery a 2159785 2159785 Mortgage issuing 2372873 2372873 Mortgage issuing
nd equip 3.38 3.38 d bank 3.18 3.18 d bank
ment acceptanc acceptance bills e bills
Endorsed Discounte
by the d by the
Notes rec
eivable -- Obligatio
Company Obligatio Company
n to pay at the n to pay at theoutstand 4614412 4614412 unexpired period-en 5597983 5597983 bills period-ening transf 3.81 3.81 transferre d and not 2.64 2.64 discounte d and noterred not d notes due on d before due ones the maturity the
balance balance
sheet date sheet date
Total 1787961 1787961 1581269 158126970.66 70.66 83.99 83.99
23. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 756037100.68 528139582.33
Total 756037100.68 528139582.33
At the end of the current period there were no notes payable due and not paid.
24. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Payment for goods 589863799.52 641484184.05
Total 589863799.52 641484184.05
(2) Significant Accounts Payable Aging over One Year or Overdue
Unit: RMB
125Changchai Company Limited Interim Report 2024
Item Ending balance Unpaid/ Un-carry-over reason
Suspending cooperation with
Payment for goods 37259326.16
suppliers to liquidate the payment
Payment for equipment 4576029.01 Equipment warranty
Total 41835355.17
25. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Interest payable 0.00 0.00
Dividends payable 3891433.83 3891433.83
Other payables 202782329.24 155131948.98
Total 206673763.07 159023382.81
(1) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 3243179.97 3243179.97
Dividends for non-controlling
648253.86648253.86
shareholders
Total 3891433.83 3891433.83
The reason for non-payment for over one year: Not gotten by shareholders yet.
(2) Other Payables
1) Other Payables Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Margin & cash pledged 3546895.46 2671042.33
Intercourse funds among units 16052352.25 11107514.80
Intercourse funds among
415689.65398761.04
individuals
Sales discount and three
165240406.47125096632.36
guarantees
Other 17526985.41 15857998.45
126Changchai Company Limited Interim Report 2024
Total 202782329.24 155131948.98
2) Significant Other Payables Aging over One Year or Overdue
The significant other payables aging over one year at the period-end mainly referred to the unsettled temporary
credits and charges owned.
26. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Rent received in advance 678302.75 647441.22
Land compensation received in
30000000.001000000.00
advance
Total 30678302.75 1647441.22
(2) There were no significant advances from customers aging over one year or overdue.
27. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Contract liabilities 37517411.19 33352877.66
Total 37517411.19 33352877.66
There were no significant contract liabilities aging over one year at the end of the period.
28. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 47738883.57 146844195.94 183393037.79 11190041.72
II.Post-employment
benefit-defined 16356909.67 16356909.67
contribution plans
III. Termination
benefits
127Changchai Company Limited Interim Report 2024
IV. Current portion
of other benefits
Total 47738883.57 163201105.61 199749947.46 11190041.72
(2) List of Short-term Salary
Unit: RMB
Beginning
Item Increase Decrease Ending balance
balance
1. Salary bonus
40196939.41123031773.43159614971.933613740.91
allowance subsidy
2.Employee welfare 1592.74 1685033.60 1685033.60 1592.74
3. Social insurance 9287879.34 9287879.34
Of which: Medical
7588439.467588439.46
insurance premiums
Work-related injury
914597.04914597.04
insurance
Maternity insurance 784842.84 784842.84
4. Housing fund 10753058.00 10753058.00
5.Labor union budget
and employee education 7540351.42 2086451.57 2052094.92 7574708.07
budget
6. Short-term absence
with salary
7. Short-term profit
sharing scheme
Total 47738883.57 146844195.94 183393037.79 11190041.72
(3) List of Defined Contribution Plans
Unit: RMB
Beginning
Item Increase Decrease Ending balance
balance
1. Basic pension
15858886.5815858886.58
benefits
2. Unemployment
498023.09498023.09
insurance
3. Enterprise annuities
Total 16356909.67 16356909.67
128Changchai Company Limited Interim Report 2024
29. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 1905690.13 189045.23
Corporate income tax 501235.23 1686812.32
Personal income tax 155738.26 312930.09
Urban maintenance and
116252.32881885.27
construction tax
Property tax 1582563.25 1678590.95
Land use tax 935265.32 943261.64
Stamp duty 295260.23 349554.08
Education Surcharge 50254.32 36841.50
Comprehensive fees 110523.52 120291.58
Environmental protection tax 31957.08 31957.08
Total 5684739.66 6231169.74
30. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Sale service fee 352652.36 393790.53
Transportation storage fee 654893.25 830881.27
Electric charge 1385265.48 1457500.39
Tax to be transferred 2810623.25 2830696.17
Estimated share value added tax 2231194.94 2230084.52
Obligation to pay bills transferred
46144123.8155979832.64
before maturity
Other withholding expenses 4517256.58 3347180.44
Total 58096009.67 67069965.96
31. Deferred Income
Unit: RMB
Beginning Reason for
Item Increase Decrease Ending balance
balance formation
129Changchai Company Limited Interim Report 2024
Government Government
32795896.481704864.7331091031.75
grants appropriation
Total 32795896.48 1704864.73 31091031.75 --
Other notes:
Liability items involving government grants
Unit: RMB
Amount
recorded into
Related to
Beginning Amount of other income
Item Ending balance assets/related
balance new subsidy in the
income
Reporting
Period
National major project
special allocations- Flexible
processing production line 10001835.00 759633.00 9242202.00 Related to assets
for cylinders of diesel
engines
Remove compensation 17181816.74 332986.81 16848829.93 Related to assets
Research and development
and industrialization
allocations of national III/IV
5612244.74 612244.92 4999999.82 Related to assets
standard high-powered
efficient diesel engine for
agricultural use
Total 32795896.48 1704864.73 31091031.75
32. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Bonus Ending
balance New shares Bonus issue from Other Subtotal balance
issued shares
profit
The sum of 70569250 70569250
shares 7.00 7.00
33. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
130Changchai Company Limited Interim Report 2024
Capital premium
620338243.21620338243.21
(premium on stock)
Other capital reserves 20171432.63 20171432.63
Total 640509675.84 640509675.84
34. Other Comprehensive Income
Unit: RMB
Reporting Period
Less:
Record
Less: ed in
Recorded other
in other compre
comprehe hensiv
Attribu
nsive e Attribu
Income table to
income in income table to
Beginni before Less: the
Endin
prior in prior non-co
Item ng taxatio Income Compa
g
period period ntrollin
balance n in the tax ny as
balan
and and g
Curren expens the ce
transferre transfe interest
t e parent
d in rred in s after
Period after
profit or retaine tax
tax
loss in d
the earning
Current s in the
Period Curren
t
Period
I. Other comprehensive -5204 -4423 6229667180 -7806
income that will not be 4000.0 7400.0 4292
reclassified to profit or loss 321.82 600.000 0 1.82
Changes in fair value of -5204 -4423 6229667180 -7806
other equity instrument 4000.0 7400.0 4292
investment 321.82 600.000 0 1.82
-5204-44236229
Total of other 667180 -7806
4000.07400.04292
comprehensive income 321.82 600.00
001.82
Other notes including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized
amount: None
131Changchai Company Limited Interim Report 2024
35. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Safety production
19432089.523083166.062432550.2120082705.37
cost
Total 19432089.52 3083166.06 2432550.21 20082705.37
36. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
350538734.44350538734.44
reserves
Discretional surplus
13156857.9013156857.90
reserves
Total 363695592.34 363695592.34
37. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained
1002436724.71915495909.35
earnings before adjustments
Total retained earnings at the
beginning of the adjustment period
(“+” means up “-” means down)
Beginning balance of retained
1002436724.71915495909.35
earnings after adjustments
Add: Net profit attributable to
owners of the Company as the 50097655.15 131937324.66
parent
Less: Withdrawal of statutory
surplus reserves
Withdrawal of discretional
surplus reserves
Withdrawal of general
reserve
Dividend of ordinary shares 33167547.83 7056925.07
132Changchai Company Limited Interim Report 2024
payable
Dividends of ordinary shares
transferred as share capital
Ending retained earnings 1019366832.03 1040376308.94
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same
control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
38. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 1477768073.74 1232962844.33 1333099509.22 1156456220.22
Other operations 18141078.89 14141225.72 17418130.63 12441983.61
Total 1495909152.63 1247104070.05 1350517639.85 1168898203.83
Information of operating income and operating cost:
Unit: RMB
Category of Segment 1 Total
contracts Operating Revenue Operating cost Operating Revenue Operating cost
Business Type
Of which:
Single-cylinder
473252480.60408535961.19473252480.60408535961.19
diesel engines
Multi-cylinder
850224657.96697174644.25850224657.96697174644.25
diesel engines
Other products 117713164.75 95789399.32 117713164.75 95789399.32
Fittings 36577770.43 31462839.57 36577770.43 31462839.57
Classification by
operating region
Of which:
Sales in domestic
1321666902.161089037564.131321666902.161089037564.13
market
Export sales 156101171.58 143925280.20 156101171.58 143925280.20
133Changchai Company Limited Interim Report 2024
Total 1477768073.74 1232962844.33 1477768073.74 1232962844.33
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0 at the period-end.
39. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and
1206347.651006348.45
construction tax
Education surcharge 892462.87 718820.35
Property tax 3460896.66 3169527.35
Land use tax 2237252.61 2197586.41
Vehicle and vessel use tax 403.52 403.52
Stamp duty 1054326.09 628716.88
Environment tax 102132.33 100381.82
Other 5269.40 5470.80
Total 8959091.13 7827255.58
40. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 27401986.86 28128076.17
Office expenses 5393754.21 5597629.95
Depreciation and amortization 8902514.69 9181948.43
Safety expenses 2432550.21 1768064.08
Repair charge 529280.85 589852.63
Inventory scrap and inventory loss
133065.37-651231.55
(profit)
Other 8687477.27 8263031.35
Total 53480629.46 52877371.06
41. Selling Expense
Unit: RMB
134Changchai Company Limited Interim Report 2024
Item Reporting Period Same period of last year
Employee benefits 21109483.94 17034869.46
Office expenses 4106380.87 3936262.82
Three guarantees 36051097.32 35094246.66
Other 1436160.48 6065653.23
Total 62703122.61 62131032.17
42. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Direct input expense 22523758.26 20419421.63
Employee benefits 11317402.28 11534165.94
Depreciation and amortization 2749281.31 3284892.82
Other 2174805.19 600591.03
Total 38765247.04 35839071.42
43. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 1546928.49 3343884.90
Less: Interest income 7969452.65 4264102.18
Net foreign exchange gains or
-2334179.75-4784425.33
losses
Other 142352.25 727989.66
Total -8614351.66 -4976652.95
44. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Government grants directly
recorded into the current profit or 248837.64 1594191.79
loss
Government grants related to
1704864.731704864.73
deferred income
List of other income:
135Changchai Company Limited Interim Report 2024
Unit: RMB
Category Reporting Period Same period of last year
Membership dues return 12085.00 2856.53
Special funds for high-quality industrial
development 25000.00
Special funds for promoting high-quality
development through technological innovation 513000.00
Special funds for talents 60000.00
Municipal science and technology innovation
and incentive funds Science and Technology 81000.00 543026.62
Program Funding
Subsidies for high-quality invention 30000.00
Intellectual property funding and rewards 1500.00
Rewards for district engineering technology
research centre in 2023 50000.00
Changzhou talent plan-special program for
100000.000.00
foreign talents
Demolition compensation (replacing Zou
Village with Hehai Road) 133666.74 133666.74
Demolition compensation - main workshops in
the base in Hehai Road 199320.07 199320.07
The national major special project - the flexible
processing production line for diesel engine 759633.00 759633.00
cylinder blocks
National III/IV Appropriation for the research
and development and industrialization of
standard high-horsepower high-efficiency 612244.92 612244.92
agricultural diesel engine
Value Added Tax (VAT) Deductions and
Benefits 294256.13
Individual tax handling fees 55752.64 74552.51
Total 1953702.37 3299056.52
136Changchai Company Limited Interim Report 2024
45. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Held-for-trading financial assets -34487453.74 19360455.86
Total -34487453.74 19360455.86
46. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income accounted by
equity method
Investment income from disposal of long-term
equity investment
Investment income from holding of trading
654815.85343730.00
financial assets
Investment income from disposal of trading
2430.18
financial assets
Dividend income from holding of other equity
10998000.00
instrument investment
Income from re-measurement of residual stock
rights at fair value after losing control power
Interest income from holding of investment in debt
499852.62705680.77
obligations
Interest income from holding of investment in
other debt obligations
Investment income from disposal of investment in
other debt obligations
Income from debt reorganization
Income from refinancing operations 74524.00 14396.97
Investment income from financial products 3371852.31 4471297.06
Accounts receivable financing-discount interest of
-1300004.16-2310613.28
bank acceptance bills
Total 14299040.62 3226921.70
47. Credit Impairment Loss
Unit: RMB
137Changchai Company Limited Interim Report 2024
Item Reporting Period Same period of last year
Bad debt loss of accounts
-17840474.15-12796606.08
receivable
Bad debt loss of other receivables 2191.49 -1750745.09
Total -17838282.66 -14547351.17
48. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Loss on inventory valuation and
-359995.80-565273.49
contract performance cost
Total -359995.80 -565273.49
49. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Disposal income of fixed assets
408245.54105395693.25
and intangible assets
50. Non-operating Income
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring
profit or loss
Accounts not required to
410870.50410870.50
be paid
Income from penalty 13396.22 13396.22
Other 646668.47 495538.97 646668.47
Total 1070935.19 495538.97 1070935.19
51. Non-operating Expense
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring
profit or loss
138Changchai Company Limited Interim Report 2024
Compensation for quality 264014.59 144428.82 264014.59
Compensation 0.00 731752.92 0.00
Other 3720.00 421166.39 3720.00
Total 267734.59 1297348.13 267734.59
52. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 12974889.92 2460114.33
Deferred income tax expense -8660218.60 4729214.00
Total 4314671.32 7189328.33
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 58289800.93
Current income tax expense accounted at statutory/applicable tax rate 8769361.12
Influence of applying different tax rates by subsidiaries 551584.53
Influence of income tax before adjustment
Influence of non-taxable income -1832034.96
Influence of non-deductable costs expenses and losses
Influence of deductable losses of unrecognized deferred income tax at the
beginning of the Reporting Period
Influence of deductable temporary difference or deductable losses of
-3174239.37
unrecognized deferred income tax assets in the Reporting Period
Income tax expense 4314671.32
53. Other Comprehensive Income
See Note 34 for details.
54. Cash Flow Statement
(1) Cash Related to Operating Activities
Cash Generated from Other Operating Activities
139Changchai Company Limited Interim Report 2024
Unit: RMB
Item Reporting Period Same period of last year
Subsidy and appropriation 55752.64 1594191.79
Other intercourses in cash 4561973.63 5293371.43
Interest income 7969452.65 4264102.18
Other 201272.35 372352.32
Total 12788451.27 11524017.72
Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Selling and administrative expense
80012536.5279187465.71
paid in cash
Handling charges 1546928.49 1125365.36
Other 789612.45 658923.36
Other transactions 13789734.98 149835.21
Total 96138812.44 81121589.64
(2) Cash Related to Financing Activities
Changes in liabilities arising from financing activities
√ Applicable □ Not applicable
Unit: RMB
Increase Decrease
Item Beginning Endingbalance Cash changes Non-cash Cash changes Non-cash balancechanges changes
Other
payables-divi 3891433.83 33167547.8 33167547.8dends 3 3 3891433.83
payable
Total 3891433.83 33167547.8 33167547.83 3 3891433.83
55. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Same period of last
Supplemental information Reporting Period
year
1. Reconciliation of net profit to net cash flows generated from
140Changchai Company Limited Interim Report 2024
operating activities
Net profit 53975129.61 136099723.92
Add: Provision for impairment of assets -359995.80 15112624.66
Depreciation of fixed assets of oil and gas assets of productive
38972508.8244923816.05
living assets
Depreciation of right-of-use assets
Amortization of intangible assets 3046858.77 3208767.08
Amortization of long-term deferred expenses 500129.64 168946.50
Losses on disposal of fixed assets intangible assets and other
-408245.54-105395693.25
long-term assets (gains by “-”)
Losses on the scrapping of fixed assets (gains by “-”)
Losses on the changes in fair value (gains by “-”) 34487453.74 -19360455.86
Financial expenses (gains by “-”) -8614351.66 -4976652.95
Investment losses (gains by “-”) -14299040.62 -3226921.70
Decrease in deferred income tax assets (increase by “-”) -2655243.07 21603212.61
Increase in deferred income tax liabilities (decrease by “-”) -16785433.67 -17481773.65
Decrease in inventory (increase by “-”) 169505166.76 14472740.38
Decrease in accounts receivable from operating activities
-431702702.30-269061905.84
(increase by “-”)
Increase in payables from operating activities (decrease by “-”) 12523252.32 79116755.30
Other
Net cash flows generated from operating activities -161814513.00 -104796816.75
2. Investing and financing activities that do not involving cash
receipts and payment:
Debt transferred as capital
Convertible corporate bond due within one year
Fixed assets from financing lease
3. Net increase in cash and cash equivalents
Ending balance of cash 643940187.59 651307581.82
Less: Beginning balance of cash 971629523.46 810350966.05
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -327689335.87 -159043384.23
141Changchai Company Limited Interim Report 2024
(2) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 643940187.59 971629523.46
Including: Cash on hand 146931.23 157238.05
Bank deposit on demand 638741422.13 963604998.68
Other monetary assets on demand 5051834.23 7867286.73
Accounts deposited in the central bank
available for payment
Deposits in other banks
Accounts of interbank
II. Cash equivalents
Of which: Bond investment expired within
three months
III. Ending balance of cash and cash
643940187.59971629523.46
equivalents
Of which: Cash and cash equivalents with
restriction in use for the Company as the
parent or subsidiaries of the Group
(3) Monetary Assets Not Classified as Cash and Cash Equivalents
Unit: RMB
Amount during
Item the current Previous period Reason for not classifying the item as
period cash and cash equivalents
Time deposits in banks not held to meet
Bank deposits-fixed time
39000000.00 24000000.00 short-term cash requirements for external
deposits over 3 months
payments
Other monetary assts-cash Banker's acceptance deposit
108979912.31173206532.10
deposit environmental performance bonds etc.Total 147979912.31 197206532.10
56. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
142Changchai Company Limited Interim Report 2024
Ending foreign currency Ending balance converted
Item Exchange rate
balance to RMB
Monetary assets
Of which: USD 13710056.35 7.1268 97708829.60
HKD 9065169.44 0.9127 8273780.15
Accounts receivable
Of which: USD 9065169.44 7.1268 64605649.56
GBP -67212.27 9.0430 -607800.56
Contract liabilities
Of which: USD 472535.68 7.1268 3367667.28
EUR 117145.84 7.6617 897536.28
(2) Notes to Overseas Entities Including: for Significant Oversea Entities Main Operating Place Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency Relevant
Reasons Shall Be Disclosed.□ Applicable √ Not applicable
57. Lease
(1) The Company Was Lessee:
√Applicable □Not applicable
Variable lease payments that are not covered in the measurement of the lease liabilities
□ Applicable √ Not applicable
Simplified short-term lease or lease expense for low-value assets
√Applicable □ Not applicable
The leases simplistically treated by the Company were mainly leased houses etc. which were not recognized as
right-of-use assets and lease liabilities by the Company as required by the provisions of the convergence of the
new standard for leases because of the shorter lease terms and lower individual lease expenses.Circumstances involving sale and leaseback transactions：Not applicable
(2) The Company Was Lessor:
Operating leases with the Company as lessor
√Applicable □ Not applicable
Unit: RMB
Of which: income related to
Item Rental income variable lease payments not
included in lease receipts
143Changchai Company Limited Interim Report 2024
Lease income 1156352.63
Total 1156352.63
Finance leases with the Company as lessor
□ Applicable √ Not applicable
Undiscounted lease receipts for each of the next five years
□ Applicable √ Not applicable
Reconciliation of undiscounted lease receipts to net investment in leases: Not applicable
(3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a Manufacturer or
Distributor
□ Applicable √ Not applicable
VIII. Research and Development Expenditure
Unit: RMB
Item Amount for the current period Amount for the previous period
Direct input 22523758.26 20419421.63
Employee remuneration 11317402.28 11534165.94
Depreciation and amortization 2749281.31 3284892.82
Others 2174805.19 600591.03
Total 38765247.04 35839071.42
Of which: Expensed research and
development expenditure 38765247.04 35839071.42
Capitalized research
and development expenditure 0.00 0.00
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Unit: RMB
Nature Holding percentage
Main Registra
Registere of (%) Way of
Name operating tion
d capital busine
place place Indirect
gaining
ss Directly ly
Changchai Wanzhou Diesel 8500000 Chongqi Chongqi Indust
60.00% Set-up
Engine Co. Ltd. 0.00 ng ng ry
144Changchai Company Limited Interim Report 2024
Changzhou Changchai
5506300 Changzh Changz Indust
Benniu Diesel Engine 99.00% 1.00% Set-up
0.00 ou hou ry
Fittings Co. Ltd.Changzhou Horizon 4000000 Changzh Changz Servic
100.00% Set-up
Investment Co. Ltd. 0.00 ou hou e
Changzhou Changchai
1000000 Changzh Changz Indust
Horizon Agricultural 100.00% Set-up
0.00 ou hou ry
Equipment Co. Ltd.Combinati
Changzhou Fuji Changchai on not
3725000 Changzh Changz Indust
Robin Gasoline Engine Co. 100.00% under the
0.00 ou hou ry
Ltd. same
control
Jiangsu Changchai 3000000 Changzh Changz Indust
100.00% Set-up
Machinery Co. Ltd. 00.00 ou hou ry
Changzhou Xingsheng
1000000 Changzh Changz Servic
Property Management Co. 100.00% Set-up.00 ou hou e
Ltd.Combinati
Zhenjiang Siyang Diesel 2000000
Engine Manufacturing Co. Zhenjian Zhenjia Indust
on not
49.00% under the
Ltd. .00 g ng ry same
control
Explanation:
1. The Company holding 49% of the shares in Zhenjiang Siyang Diesel Engine Manufacturing Co. Ltd. is the
largest shareholder and the other shareholders are relatively scattered. Among the 7 members of the board of
directors of Zhenjiang Siyang 4 are dispatched by the Company. The chairman of Zhenjiang Siyang is dispatched
by the Company and the Company is the actual controller of Zhenjiang Siyang which constitutes the conditions
for merger.
2. In June 2024 the Company acquired 25% of the shares in Horizon Agricultural Equipment originally held by
Horizon Investment. Currently the Company directly holds 100% of the shares in Horizon Agricultural
Equipment.
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Declaring
Shareholding The profit or loss Balance of
dividends
proportion of attributable to the non-controlling
Name distributed to
non-controlling non-controlling interests at the
non-controlling
interests interests period-end
interests
145Changchai Company Limited Interim Report 2024
Changchai
Wanzhou Diesel 40.00% 194926.30 20005287.41
Engine Co. Ltd.Zhenjiang Siyang
Diesel Engine
Manufacturing Co. 51.00% 3682548.16 54993395.40
Ltd.Holding proportion of non-controlling interests in subsidiary different from voting proportion: Not applicable
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Non- Non-
Non- Curre Non- Curre
Name Curre curre Total Curre curre Totalcurre Total nt curre Total nt
nt nt liabili nt nt liabili
nt assets liabili nt assets liabili
assets liabili ties assets liabili ties
assets ties assets ties
ty ty
Chan
gchai
Wanz
hou 4180 2198 6379 1317 1317 4117 2235 6353 1358 1358
Diese 7112. 8559 5671 9957 9957 9375 1977 1353 4154 4154
l 03 .62 .65 .90 .90 .84 .78 .62 .77 .77
Engin
e Co.Ltd.Zhenj
iang
Siyan
g
Diese
l 9304 2524 1182 1138 1138 9474 2646 1212 2029 20603108
Engin 1815 3492 8530 0848 0848 7199 8620 1582 5436 6316
e 79.17.38 .13 7.51 .99 .99 .90 .63 0.53 .96 .13
Manu
factur
ing
Co.Ltd.Unit: RMB
Name Reporting Period Same period of last year
146Changchai Company Limited Interim Report 2024
Cash Cash
Total Total
flows flows
Operating comprehe Operating comprehe
Net profit from Net profit from
revenue nsive revenue nsive
operating operating
income income
activities activities
Changcha
i
Wanzhou 2043683 487315.7 487315.7
8.0266494183.8
2619004212968.8212968.8-852564
Diesel 9 3.15 3 3 6.36
Engine
Co. Ltd.Zhenjian
g Siyang
Diesel
Engine 4021227 6294954 62949541.49 .12 .12 291189.2
3809831696959269695927732566
Manufact 0 2.48 .70 .70 .01
uring
Co. Ltd.
2. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
In 2017 the Company set up Changzhou Xietong Private Equity Fund (Limited Partnership) together with
Synergetic Innovation Fund Management Co. Ltd. through joint investment. On 18 October 2018 and 3
December 2020 new partners were respectively added. Partnership Shares transfer was made respectively on 29
December 2022 and 30 October 2023. In line with the revised Partnership Agreement the general partner is
Synergetic Innovation Fund Management Co. Ltd. and the limited partners are Changchai Company Limited
Changzhou Zhongyou Petroleum Sales Co. Ltd. Changzhou Fuel Co. Ltd. Tong Yinzhu Tong Yinxin Anhui
Haiyunzhou Equity Investment Partnership Enterprise (Limited) Shenzhen Jiaxin One Venture Capital
Partnership (Limited Partnership) Zhong Wende and Qingdao Yinjiahui Industrial Investment Partnership
(Limited Partnership). In accordance with the Partnership Agreement the limited partner does not execute the
partnership affairs. Thus the Company does not control Changzhou Xietong Private Equity Fund (Limited
Partnership) and did not include it into the scope of consolidated financial statements.X. Government Grants
1. Government Grants Recognized at the End of the Reporting Period at the Amount Receivable
□ Applicable √ Not applicable
Reasons for failing to receive government grants in the estimated amount at the estimated point in time
□ Applicable √ Not applicable
2. Liability Items Involving Government Grants
√Applicable□ Not applicable
147Changchai Company Limited Interim Report 2024
Unit: RMB
Amount
Amount
recorded
recorded
into
Amount of into other Related to
Accounting Beginning non-operati Other Ending
items balance new income in assets/relatng income changes balance
subsidy the ed income
in the
Reporting
Reporting
Period
Period
Deferred 32795896 1704864. 31091031 Related to
income .48 73 .75 assets
3. Government Grants Recognized as Current Profit or Loss
√Applicable□ Not applicable
Unit: RMB
Accounting items Amount for the current period Amount for the previous period
Other income 1897949.73 2930247.88
XI. The Risk Related to Financial Instruments
1. Various Types of Risks Arising from Financial Instruments
The goal of the Company’s risk management was gaining the balance between the risk and income and reduced
the negative impact to the operation performance of the Company in the lowest level and maximized the interests
of shareholders and other equity investors. Base on the risk management goal the basis strategy of the Company’s
risk management was to recognized and analyze all kinds of risk that the Company faced set up suitable risk
bottom line and conduct risk management and supervised the risks timely and reliably and control the risk within
the limited scope.The main risks of the Company due to financial instruments were credit risk liquidity risk and market risk. The
management level had reviewed and approved the policies to manage the risks which summarized as follows:
(I) Credit Risk
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the
other party.The credit of risk of the Company mainly was related to account receivable in order to control the risk the
Company conduct the following methods.The Company only conducts related transaction with approved and reputable third party in line with the policy of
the Company the Company need to conduct credit-check for the clients adopting way of credit to conduct
transaction. In addition the Company continuously monitors the balance of account receivable to ensure the
Company would not face the significant bad debt risk.(II) Liquidity Risk
Liquidity risk is referred to the risk of incurring capital shortage when performing settlement obligation in the way
of cash payment or other financial assets. The policies of the Company are to ensure that there was sufficient cash
148Changchai Company Limited Interim Report 2024
to pay the due liabilities.The liquidity risk was centralized controlled by the financial department of the Company. The financial
departments through supervising the balance of the cash and securities can be convert to cash at any time and the
rolling prediction of cash flow in future 12 months to ensure the Company has sufficient cash to pay the liabilities
under the case of all reasonable prediction.(III) Market Risk
Market risk is refer to risk of the fair value or future cash flow of financial instrument changed due to the change
of market price including foreign exchange rate risk interest rate risk.
1. Interest Rate Risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due
to the change of market price.
2. Foreign Exchange Risk
Foreign exchange rate risk is referred to the risk incurred form the change of exchange rate. As for the Company’
s export business customers will be given a certain credit term if the RMB appreciates against the dollar the
company's accounts receivable will incur foreign currency exchange loss.
2. Financial Assets
(1) Classification of Transfer Methods
√Applicable□ Not applicable
Unit: RMB
Transfer Nature of Amount of Recognition
method transferred transferred termination or Basis for recognition terminationfinancial assets financial assets not
Endorsement Notes Not The Company retains substantially all
/discount receivable 46144123.81 derecognized of the risks and rewards including therisk of default associated with its
Endorsement Accounts
/discount receivable 12282312.54 Derecognized
The Company transfers almost all the
financing risks and rewards
Total 58426436.35
(2) Financial Assets Derecognized due to Transfer
√Applicable□ Not applicable
Unit: RMB
Item Transfer method of Amount of derecognized Gains or losses related tofinancial assets financial assets derecognization
Accounts receivable
financing Endorsement 8259386.86
Accounts receivable
financing Discount 78281000.00 -1300004.16
Total 86540386.86 -1300004.16
149Changchai Company Limited Interim Report 2024
(3) Continued Involvement in the Transfer of Assets Financial Assets
√Applicable□ Not applicable
Unit: RMB
Item Transfer method of Amount of assets resulting from Amount of liabilities resultingassets continued involvement from continued involvement
Notes receivable Endorsement 46144123.81 46144123.81
Total 46144123.81 46144123.81
XII. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Item Fair value Fair value Fair value
measurement items measurement items measurement items Total
at level 1 at level 2 at level 3
I. Consistent fair
--------
value measurement
(I) Trading financial
50661877.00352238906.53402900783.53
assets
1. Financial assets
at fair value through 50661877.00 352238906.53 402900783.53
profit or loss
(1) Debt instrument
investment
(2) Equity
instrument 50661877.00 50661877.00
investment
(3) Derivative
financial assets
Wealth
management 352238906.53 352238906.53
investments
2. Financial assets
designated to be
measured at fair
value and the
changes included
into the current
150Changchai Company Limited Interim Report 2024
profit or loss
(1) Debt instrument
investment
(2) Equity
instrument
investment
(II) Other
investments in debt
obligations
(III)Other equity
instrument 498987000.00 418457025.67 917444025.67
investment
(IV) Investment
property
1. Land use right
for lease
2. Buildings leased
out
3. Land use right
held and planned to
be transferred once
appreciating
(V) Living assets
1. Consumptive
living assets
2. Productive living
assets
Accounts receivable
financing 12282312.54 12282312.54
Other non-current
financial assets 412914576.80 412914576.80
Total assets
consistently
549648877.00352238906.53843653915.011745541698.54
measured by fair
value
(VI) Trading
financial liabilities
Of which: Issued
trading bonds
Derivative
151Changchai Company Limited Interim Report 2024
financial liabilities
Other
(VII) Financial
liabilities
designated to be
measured at fair
value and the
changes recorded
into the current
profit or loss
Total liabilities
consistently
measured by fair
value
II. Inconsistent fair
value measurement
(1) Assets held for
sale
Total assets
inconsistently
measured by fair
value
Total liabilities
inconsistently
measured by fair
value
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
For the listed company stocks held by the company in the held-for-trading financial assets measured at fair value
the closing market price on the balance sheet date was the basis for the measurement of fair value.
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
Wealth management and investment: The underlying assets of investment in wealth management products include
bond assets deposit assets fund assets etc. The portfolio of investment assets should be dynamically managed.The fair value of wealth management products should be adjusted according to the yield of similar products
provided by the counterparty.
152Changchai Company Limited Interim Report 2024
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
(1) Accounts receivable financing: Accounts receivable financing is a bank acceptance with high credit rating
short maturity and low risk. The par amount is close to the fair value and is used as the fair value.
(2) Among the other non-current financial assets: for the investments in equity instrument of Jiangsu Horizon New
Energy Technology Co. Ltd. Jiangsu Horizon New Energy Technology Co. Ltd. entrusted an appraisal agency to
evaluate the value of all its shareholders’ equity due to the need for capital increase and share expansion in 2023
and confirmed the premium rate of capital increase based on the appreciation rate of the equity value. The
company’s new investors signed the capital increase agreements on 27 September 2023. Therefore the fair value
of the equity investment had been adjusted and confirmed accordingly based on the premium rate of the new
round of financing. And an appraisal agency was hired to conduct an appraisal to confirm
(3) Among other equity investment instruments the total investment in Chengdu Changwan Diesel Engine
Distribution Co. Ltd. Chongqing Wanzhou Changwan Diesel Engine Parts Co. Ltd. Changzhou Economic and
Technological Development Company Changzhou Tractor Company Changzhou Economic Commission
Industrial Capital Mutual Aid Association Beijing Engineering Machinery Agricultural Machinery Company was
RMB 1.21 million and the fair value was RMB 0.00 due to the difficulty in recovering the investment.Since its establishment in October 2017 Changzhou Synergetic Innovation Private Equity Fund (Limited
Partnership) had increased the equity of partners at the end of the year due to the change in fair value of the equity
held by it. In addition the company's business environment operating conditions and financial status had not
undergone major changes. Therefore the company determined its fair value on the basis of the net book assets of
the partnership at the end of the period.
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
Not applicable
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Not applicable
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
Not applicable
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
The financial assets and liabilities measured at amortization cost mainly include notes receivable accounts
receivable other receivables short-term borrowings accounts payable other payables etc. The difference
between the carrying value and fair value for financial assets and liabilities not measured at fair value is small.
153Changchai Company Limited Interim Report 2024
9. Other
During the Reporting Period there was no conversion between Level 1 and Level 2 nor was there any transfer to
or from Level 3 for the fair value measurement of the Company's financial assets and financial liabilities.XIII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of Proportion of
share held by voting rights
Registration Nature of Registered the Company as owned by the
Name
place business capital the parent Company as the
against the parent against
Company the Company
Investment and
operations of
state-owned
assets assets
management
(excluding
Changzhou financial
Investment Changzhou business) RMB1.2 billion 32.26% 32.26%
Group Co. Ltd. investment
consulting
(excluding
consulting on
investment in
securities and
options) etc.Notes: Information on the Company as the parent
The parent company of the Company is Changzhou Investment Group Co. Ltd. According to the guiding
principle of the Notice of Provincial Government on Issuing the Implementation Plan for Transferring Part of
State-owned Capital to Boost Social Security Fund in Jiangsu Province (SZF [2020] No. 27) the Notice on
Transferring Part of State-owned Capital to Cities and Counties to Boost Social Security Fund (SCGM [2020] No.
139) from the Department of Finance of Jiangsu Province and other five departments and the Notice on
Transferring Part of State-owned Capital at Urban (District) Level to Boost Social Security Fund (CCGM [2020]
No. 4) from Changzhou Finance Bureau and other four departments the 10% state-owned equity of the
Investment Group held by Changzhou Municipal People's Government is transferred to the Department of
Finance of Jiangsu Province free of charge. After the share transfer Changzhou People’s Government holds 90%
state-owned equity of the Investment Group and the Department of Finance of Jiangsu Province holds 10%
state-owned equity of the Investment Group. In accordance with Changzhou People’s Government Document
(CZF [2006] No. 62) Changzhou Investment Group Co. Ltd. is an enterprise which Changzhou People’s
Government authorizes Changzhou Government State-owned Assets Supervision and Administration Commission
154Changchai Company Limited Interim Report 2024
to perform duties of investors. Thus Changzhou Investment Group Co. Ltd. is the controlling shareholder of the
Company and Changzhou Government State-owned Assets Supervision and Administration Commission is still
the actual controller of the Company. The final controller of the Company is Changzhou Government State-owned
Assets Supervision and Administration Commission.
2. Subsidiaries of the Company
Refer to Note IX for details.
3. Situation of Joint Ventures and Associated Enterprises of the Company
None
4. Information on Other Related Parties
Name Relationship with the Company
Changzhou Synergetic Innovation Private Equity Participated in establishing the industrial investment
Fund (Limited Partnership) fund
Jiangsu Horizon New Energy Technology Co. Ltd. Shareholding enterprise of the Company
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on balance sheet date
As of 30 June 2024 there was no significant commitment for the Company to disclose.
2. Contingency
(1) Significant Contingency on Balance Sheet Date
None
(2) In Despite of no Significant Contingency to Disclose the Company Shall Also Make Relevant Statements
There was no significant contingency in the Company.XV. Events after Balance Sheet Date
1. Sales Return
None
155Changchai Company Limited Interim Report 2024
2. Notes to Other Events after Balance Sheet Date
There was no other event after balance sheet date.XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
None
(2) Prospective Application
None
2. Debt Restructuring
Not applicable
3. Assets Replacement
Not applicable
4. Pension Plans
Not applicable
5. Discontinued Operations
Not applicable
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
Due to the operation scope of the Company and subsidiaries were similar the Company conducts common
management and did not divide business unit so the Company only made single branch report.
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
None
156Changchai Company Limited Interim Report 2024
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 1170450727.23 289665029.12
One to two years 2314925.52 1642898.19
Two to three years 4626330.47 4274309.13
More than three years 103514432.55 103238762.39
Three to four years 4545159.53 4376325.51
Four to five years 1476565.43 1398123.34
Over 5 years 97492707.59 97464313.54
Total 1280906415.77 398820998.83
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying Bad debt Carrying Bad debt
amount provision amount provision
Category Withd Carryi Withd Carryin
Amou Propo Amou rawal ngvalue Amou Propor Amou rawal g value
nt rtion nt propo nt tion nt propor
rtion tion
Accounts
receivable
withdrawal of 2105 2105 2105 21058100.0 100.0
Bad debt 8702. 1.64% 8702. 0.00 8702. 5.28% 702.1 0.00
provision 0% 0%18 18 18 8
separately
accrued
Of which:
Accounts
receivable 1259 1035 1156 3777 85765
withdrawal of 98.36 94.72 22.70 291996
bad debt 8477 2307 8.22% 3246 6229 458.7% % % 837.94
provision of by 13.59 8.88 34.71 6.65 1
group
Of which:
157Changchai Company Limited Interim Report 2024
Accounts
receivable for
which bad debt 1259 1035 1156 3777 85765
98.3694.7222.70291996
provision 8477 2307 8.22% 3246 6229 458.7
%%%837.94
accrued by 13.59 8.88 34.71 6.65 1
credit risk
features group
128012451156398810682
100.0100.0026.78291996
Total 9064 8178 9.73% 3246 2099 4160.
0%%%837.94
15.771.0634.718.8389
Individual provision for bad debts: 21058702.18 yuan including 19019243.10 yuan for large impairment items
as follows:
Unit: RMB
Beginning balance Ending balance
Withdraw
Name Carrying Bad debt Carrying Bad debt al Reason
amount provision amount provision proportio for
n withdraw
Difficult
Customer 1 1470110.64 1470110.64 1470110.64 1470110.64 100.00%
to recover
Difficult
Customer 2 1902326.58 1902326.58 1902326.58 1902326.58 100.00%
to recover
Difficult
Customer 3 6215662.64 6215662.64 6215662.64 6215662.64 100.00%
to recover
Difficult
Customer 4 2797123.26 2797123.26 2797123.26 2797123.26 100.00%
to recover
Difficult
Customer 5 2322278.50 2322278.50 2322278.50 2322278.50 100.00%
to recover
Difficult
Customer 6 2584805.83 2584805.83 2584805.83 2584805.83 100.00%
to recover
Difficult
Customer 7 1726935.65 1726935.65 1726935.65 1726935.65 100.00%
to recover
Total 19019243.10 19019243.10 19019243.10 19019243.10 -- --
Provision for bad debts by combination: provision for bad debts by combination based on credit risk
characteristics of RMB 103523078.88
Unit: RMB
Ending balance
Item
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 1170588490.37 23411769.80 2.00 %
1 to 2 years 2314925.52 115746.28 5.00 %
158Changchai Company Limited Interim Report 2024
2 to 3 years 4064067.81 609610.17 15.00%
3 to 4 years 4511159.53 1353347.86 30.00%
4 to 5 years 841163.98 504698.39 60.00%
Over 5 years 77527906.38 77527906.38 100.00%
Total 1259847713.59 103523078.88
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□ Applicable √ Not applicable
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Changes in the current period
Category Beginningbalance Ending balanceWithdrawal Reversed orrecovered Verification Others
Bad debt
provision
accrued by 21058702.18 21058702.18
item
Withdrawal
of bad debt
provision by 85765458.71 17757620.17 103523078.88
group
Total 106824160.89 17757620.17 124581781.06
Of which significant amount of recovered or transferred-back bad debt provision for the current period: None
(4) There were no accounts receivable with actual verification during the Reporting Period.
(5) Top 5 of the Ending Balance of Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Ending balance
Proportion to of bad debt
Ending balance Ending balance Ending balance total ending provision ofName of the
entity of accounts of contract
of accounts balance of accounts
receivable assets receivable and accounts receivable andcontract assets receivable and impairment
contract assets provision for
contract assets
Customer 1 646622440.97 0.00 646622440.97 50.48% 12932448.83
Customer 2 117517494.00 0.00 117517494.00 9.17% 2350349.88
Customer 3 70421083.72 0.00 70421083.72 5.50% 1408421.67
Customer 4 57254239.63 0.00 57254239.63 4.47% 1145084.79
Customer 5 48331650.00 0.00 48331650.00 3.77% 966633.00
Total 940146908.32 0.00 940146908.32 73.39% 18802938.17
159Changchai Company Limited Interim Report 2024
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 253310648.05 399142024.92
Total 253310648.05 399142024.92
(1) Other Receivable
1) Other Receivables Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Cash deposit and Margin 1300.00 1300.00
Intercourse funds among units 288834794.06 433589441.68
Petty cash and borrowings by
864426.75884233.75
employees
Other 13616314.29 13638079.94
Total 303316835.10 448113055.37
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 164027411.09 308824779.36
One to two years 113974734.71 113974034.71
Two to three years 13250.00 12802.00
More than three years 25301439.30 25301439.30
Three to four years 30000.00 30000.00
Four to five years
Over 5 years 25271439.30 25271439.30
Total 303316835.10 448113055.37
3) Disclosure by Withdrawal Methods for Bad Debts
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
Bad debt provision First stage Second stage Third stage Total
160Changchai Company Limited Interim Report 2024
Expected credit Expected loss in the
loss in the next duration (credit
Expected loss in the
impairment not duration (credit12 months occurred) impairment occurred)
Balance of 1
46873.2016709.1048907448.1548971030.45
January 2024
Balance of 1
January 2024 in the —— —— —— ——
Current Period
--Transfer to
Second stage
-- Transfer to Third
stage
-- Reverse to
Second stage
-- Reverse to First
stage
Withdrawal of the
1035156.601035156.60
Current Period
Reversal of the
Current Period
Write-offs of the
Current Period
Verification of the
Current Period
Other changes
Balance of 30 June
1082029.8016709.1048907448.1550006187.05
2024
Changes of carrying amount with significant amount changed of loss provision in the Current Period
□ Applicable √ Not applicable
4) Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Write-of Ending balancebalance Withdrawal Other
recovery f
161Changchai Company Limited Interim Report 2024
Bad debt
provision
21844634.061015568.6022860202.66
withdrawn
separately
Bad debt
provision
27126396.3919588.0027145984.39
withdrawn by
group
Total 48971030.45 1035156.6 50006187.05
5) There Were No Other Receivables with Actual Verification during the Reporting Period
6) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to
total ending Ending balance
Name of the entity Nature Ending balance Aging balance of of bad debt
other provision
receivables
Within 1 year:
Interco
Jiangsu Changchai 142954416.88
urse 237954416.88 78.45%
Machinery Co. Ltd. 1-2 years:
funds
95000000
Within 1 year:
Changzhou Changchai Interco
7699372.641-2
Horizon Agricultural urse 17557631.35 5.79% 17557631.35
years:
Equipment Co. Ltd. funds
9858258.71
Interco
Changzhou Changniu
urse 15000000.00 1-2 years 4.95%
Machinery Co. Ltd.funds
Interco
Changzhou Compressors
urse 2940000.00 Over 5 years 0.97% 2940000.00
Factory
funds
Interco
Changchai Group Imp.urse 2853188.02 Over 5 years 0.94% 2853188.02
& Exp. Co. Ltd.funds
Total 276305236.25 91.10% 23350819.37
3. Long-term Equity Investment
Unit: RMB
162Changchai Company Limited Interim Report 2024
Ending balance Beginning balance
Item Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserves value amount reserves value
Investment to 583443530. 576443530. 583443530. 576443530.
7000000.007000000.00
subsidiaries 03 03 03 03
Investment to
joint ventures
and 44182.50 44182.50 44182.50 44182.50
associated
enterprises
583487712.576443530.583487712.576443530.
Total 7044182.50 7044182.50
53035303
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease for the current period
Beginning Beginnin Endingg balance Withdra Ending balance
balance Addition wal of
Investee of Reduced balance of
(carrying depreciat al investme impairm Others (Carrying depreciatinvestme ent
value) ion value) ionreserve nt
nt provisio reserve
n
Changchai
Wanzhou
51000005100000
Diesel
0.000.00
Engine Co.Ltd.Changzhou
Changchai
Benniu
96466509646650
Diesel
0.000.00
Engine
Fittings Co.Ltd.Changzhou
Horizon 4000000 4000000
Investment 0.00 0.00
Co. Ltd.
163Changchai Company Limited Interim Report 2024
Changzhou
Changchai
Horizon 700000 700000
0.000.00
Agricultural 0.00 0.00
Equipment
Co. Ltd.Changzhou
Fuji
Changchai
47286234728623
Robin
0.030.03
Gasoline
Engine Co.Ltd.Jiangsu
Changchai 3000000 3000000
Machinery 00.00 00.00
Co. Ltd.Changzhou
Xingsheng
1000000.1000000.
Property
0000
Managemen
t Co. Ltd.Zhenjiang
Siyang
Diesel 4069080 4069080
Engine 0.00 0.00
Manufacturi
ng Co. Ltd.
57644357000005764435700000
Total
30.030.0030.030.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease for the current period
Begin Endin
Begin ning Gains Adjus Cash Endin g
ning balan and tment bonus Withd g balan
balan ce of Addit Redu losses of Chan or rawalInvest balan ce ofce depre ional ced recog other ges of profit ofee Other ce depre(carry ciatio invest invest nized comp other s impai s (Carr ciatio
ing n ment ment under rehensive equity
annou rment ying n
value) reserv the nced provis value) reserv
e equity incom to ion e
metho e issue
164Changchai Company Limited Interim Report 2024
d
I. Joint ventures
Subto
tal 0.00 0.00 0.00 0.00
II. Associated enterprises
Beijin
g
Tsing
hua
Xingy
e
Indust
44184418
rial 0.00 0.00
2.502.50
Invest
ment
Mana
geme
nt
Co.Ltd.Subto 4418 4418
0.000.00
tal 2.50 2.50
44184418
Total 0.00 0.00
2.502.50
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□ Applicable √ Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flow.□ Applicable √ Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment
tests in prior years or external information: Not applicable
The reason for the discrepancy between the information used in the Company's impairment tests in prior years and
the actual situation of those years: Not applicable
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 1366413377.99 1162530395.97 1229806219.61 1080327550.17
Other operations 53682141.33 49682288.16 15360013.94 12076793.29
Total 1420095519.32 1212212684.13 1245166233.55 1092404343.46
165Changchai Company Limited Interim Report 2024
Breakdown information of operating income and operating cost:
Unit: RMB
Category of Segment 1 Total
contracts Operating Revenue Operating cost Operating Revenue Operating cost
Business Type
Of which:
Single-cylinder
432998950.52390766306.02432998950.52390766306.02
diesel engines
Multi-cylinder
850224657.96697174644.25850224657.96697174644.25
diesel engines
Other products 47669282.15 41574102.80 47669282.15 41574102.80
Fittings 35520487.36 33015342.90 35520487.36 33015342.90
Classification by
operating region
Of which:
Sales in domestic
1253777712.591058680312.471253777712.591058680312.47
market
Export sales 112635665.40 103850083.50 112635665.40 103850083.50
Total 1366413377.99 1162530395.97 1366413377.99 1162530395.97
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0 at the period-end.
5. Investment Income
Unit: RMB
Same period of last
Item Reporting Period
year
Dividend income from holding of other equity
instrument investment 10998000.00
Interest income from holding of debt obligation
investments 499852.62 705680.77
Investment income obtained from financial products 3180749.07 4322777.77
Income from refinancing operations 74524.00 14396.97
Accounts receivable financing-discount interest of
-1300004.16-2310613.28
bank acceptance bills
Total 13453121.53 2732242.23
166Changchai Company Limited Interim Report 2024
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains and losses from the disposal of non current
assets (including the offsetting portion of 408245.54
impairment provisions already made for assets)
Government grants recognised in profit or loss
Government grants charged to current
(exclusive of those that are closely related to the
profit and loss amounted to
Company's normal business operations and given
RMB1953702.37 the amount
in accordance with defined criteria and in 193085.00
deducting deferred income and
compliance with government policies and have a
charged to current profit and loss was
continuing impact on the Company's profit or
RMB1704864.73.loss)
The company received stock
dividends from Jiangsu Bank Co. Ltd.held by the company the wealth
Gain or loss on fair-value changes in financial
management income generated from
assets and liabilities held by a non-financial
cash management and the decrease in
enterprise as well as on disposal of financial
-18684594.97 the fair value of the shares held by
assets and liabilities (exclusive of the effective
wholly-owned subsidiary Horizon
portion of hedges that is related to the Company's
Investment in Jiangsu Liance
normal business operations)
Electromechanical Technology Co.Ltd. and Kailong High Technology
Co. Ltd.Other non-operating income and expenses other
803200.60
than the above
Less: Income tax effects -7709542.20
Non-controlling interests effects (net of tax) 178088.19
Total -9748609.82 --
Others that meets the definition of non-recurring gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Explain the reasons if the Company classifies any extraordinary gain/loss item mentioned in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Non-recurring Gains and Losses as a recurrent gain/loss item
□ Applicable √ Not applicable
167Changchai Company Limited Interim Report 2024
2. Return on Equity and Earnings Per Share
Weighted average ROE EPS (Yuan/share)
Profit as of Reporting Period
(%) EPS-basic EPS-diluted
Net profit attributable to ordinary
1.47%0.07100.0710
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
1.76%0.08480.0848
deduction of non-recurring profit
or loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
International Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with
Overseas Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data Under Domestic and Overseas
Accounting Standards; for Any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent Such Foreign Auditing Agent's Name Shall Be Clearly Stated
□ Applicable √ Not applicable
The Board of Directors
Changchai Company Limited
23 August 2024
168
沪公网安备31011802005267号
