Stock Code: 000570 200570 Stock Name: Changchai Changchai-B Announcement No. 2021-067
CHANGCHAI COMPANY LIMITED
THIRD QUARTERLY REPORT 2021
Changchai Company Limited (hereinafter referred to as the “Company”) and all the members of
the Company’s Board of Directors hereby guarantee that the contents of this Report are true
accurate and complete and free of any misrepresentations misleading statements or material
omissions.Important Notes:
1. The Board of Directors the Supervisory Committee as well as the directors supervisors and senior
management of the Company hereby guarantee that the contents of this Report are true accurate and complete and
free of any misrepresentations misleading statements or material omissions and collectively and individually
accept legal responsibility for such contents.
2. The Company’s legal representative General Manager and head of the financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are true accurate and
complete.
3. Indicate whether the financial statements in this Report have been audited by an independent auditor.
□Yes √ No
4. Matters with modified audit opinions given by the auditor
□ Applicable √ Not applicable
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
YoY change
Q3 2021 YoY change (%) Q1-Q3 2021
(%)
Operating revenue
484183670.58-17.15%1981354126.3813.10%
(RMB)
Net profit attributable to
the listed company’s -23478352.18 —— 105710713.42 171.37%
shareholders (RMB)
Net profit attributable to
the listed company’s -9073885.20 —— 18086529.38 -37.25%
shareholders beforeexceptional items (RMB)
Net cash generated
from/used in operating —— —— -316185740.11 ——
activities (RMB)
Basic earnings per share
-0.0333——0.1734149.86%
(RMB/share)
Diluted earnings per
-0.0333——0.1734149.86%
share (RMB/share)
Weighted average return
-0.75%-1.29%4.54%2.68%
on equity (%)
30 September 2021 31 December 2020 Change (%)
Total assets (RMB) 4862324921.69 3952954464.45 23.00%
Equity attributable to the
listed company’s 3122661074.22 2273349347.02 37.36%
shareholders (RMB)
Total share capital up to the former trading date before the disclosure:
Total share capital up to the former trading date
705692507
before the disclosure (share)
Fully diluted EPS calculated by the newest share capital:
Dividend on preferred shares paid (RMB) 0.00
Interest on perpetual bonds paid (RMB) 0.00
Fully diluted EPS calculated by the newest share
0.1498
capital (RMB/share)
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q3 2021 Q1-Q3 2021 Note
Gain or loss on disposal of
non-current assets (inclusive of 757900.36 6459.16
impairment allowance write-offs)
Government grants through profit or
loss (exclusive of government grants
continuously given in the Company’s
360000.00766454.70
ordinary course of business at fixed
quotas or amounts as per the
government’s policies and standards)
Gain or loss on fair-value changes on For Q1-Q3 2021 the fair
held-for-trading financial assets and value of stocks in Jiangsu
liabilities & income from disposal of Liance Electromechanical
-20805528.66102081339.45
held-for-trading financial assets and Technology Co. Ltd. and
liabilities and available-for-sale Kailong High Technology Co.financial assets (exclusive of the Ltd. held by the Company’seffective portion of hedges that arise wholly-owned subsidiary
in the Company’s ordinary course of Changzhou Horizon
business) Investment Co. Ltd. and
equity in Jiangsu Horizon
New Energy Technology Co.Ltd. held by the Company
increased. For Q3 gain or loss
on fair value changes
decreased due to the decline in
stock price.Non-operating income and expense
270234.72787110.59
other than the above
Income tax refund 0.00 6307493.08
Less: Income tax effects -5013436.60 22319882.62
Non-controlling interests effects
510.004790.32
(net of tax)
Total -14404466.98 87624184.04 --
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Consolidated Balance Sheet Items
30 September 31 December
Item Change (%) Explanation of why
2021 (RMB) 2020 (RMB)
Investments in wealth management
Held-for-trading
321347440.00 11500272.00 2694.26% instruments with idle funds out of the
financial assets
amount raised in a private placement
Discounting and collection upon maturity of
Notes receivable 346652281.02 600140938.05 -42.24%
bank acceptance notes held by the Company
The Company properly allowed customers’
buying on credit for more markets and
Accounts multi-cylinder diesel engine customers are
1033370187.93397154016.49160.19%
receivable mainly supporting companies of main
engine which are usually given longer
payment days.Decrease in imprest cash security deposits
Other receivables 4002431.93 6212062.80 -35.57% and other receivables as well as provisional
paymentsIncrease in gains on changes in the fair
value of shares held by the Company’s
wholly-owned subsidiary Changzhou
Other non-current Horizon Investment Co. Ltd. in Liance
234801290.7698732938.63137.81%
financial assets Technology Kailong High Tech etc. as
well as of equity interests held by the
Company in Jiangsu Horizon New Energy
Technology Co. Ltd.Construction in Wholly-owned subsidiary Changchai
117018095.8566502432.4175.96%
progress Machinery being under construction
Increase in prepayments of Changchai
Other non-current
63853284.81 19971006.56 219.73% Machinery for construction and engineering
assets
services
Short-term Repayment of some short-term borrowings
12000000.0022000000.00-45.45%
borrowings by the Company and its subsidiary
Employee benefits Salaries and bonuses accrued last year were
14007846.8050127161.47-72.06%
payable paid in the Reporting Period
Deferred income
124661259.24 80671598.82 54.53% Increase in the fair value of financial assets
tax liabilities
Inclusion of share premium upon the
Capital reserves 640676218.40 164328665.43 289.87%
completion of a private placement
2. Consolidated Income Statement Items for Q1~Q3
Q1~Q3 2021 Q1~Q3 2020
Item Change (%) Explanation of why
(RMB) (RMB)
Exchange gains and losses resulted from
Finance costs 823688.31 7051835.86 -88.32% exchange rate fluctuations and increase in
interest income
Decrease in government grants received by
Other income 766454.70 5695097.89 -86.54% the Company
Return on Increase in dividends received by the 8663940.64 5503903.85 57.41%
investment Company from the Bank of Jiangsu
Income tax 23705272.54 5108476.05 364.04% Increase in gains on changes in fair value
expense
Credit impairment Allowances for doubtful accounts
-13804149.22-7335779.05——
losses receivable established based on aging
Asset impairment Decrease in losses on the impairment of
-7356415.78-17398507.67——
losses assets such as inventories
Increase in sales revenue as well as
increase in gains on changes in the fair
Net profit value of shares held by the Company’s
attributable to wholly-owned subsidiary Changzhou
shareholders of 105710713.42 38953778.68 171.37% Horizon Investment Co. Ltd. in Liance
the Company as Technology Kailong High Tech etc. as
the parent well as of equity interests held by the
Company in Jiangsu Horizon New Energy
Technology Co. Ltd.
3. Consolidated Cash Flow Statement Items for Q1~Q3
Item Q1~Q3 2021 Q1~Q3 2020 Change (%) Explanation of why(RMB) (RMB)
Net cash
generated
The Company properly allowed customers’
from/used in -316185740.11 17685800.21 ——
buying on credit for more markets
operating
activities
Net cash Large investments in construction in
generated progress of Changchai Machinery and
from/used in -427869678.24 -104621999.67 —— investments of the Company and its
investing subsidiaries in wealth management
activities instruments with idle funds
Net cash
generated
Receipt of funds raised in a private
from/used in 612388654.75 -2280722.28 ——
placement
financing
activities
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well
as Holdings of Top 10 Shareholders
Unit: share
Number of preference shareholders
Number of ordinary shareholders 51043 0
with resumed voting rights (if any)
Top 10 shareholders
Shareho Shares in pledge marked or
Name of Nature of lding Total shares Restricted frozen
shareholder shareholder percenta held shares held
Status Shares
ge
Changzhou
State-owned
Investment Group 32.26% 227663417 56818181
corporation
Co. Ltd.Nuode Fund-
Huazhang Tiandi
Media Investment
Co. Ltd.-Nuode Other 1.61% 11363636 11363636
Fund Pujiang
No.64 Single Asset
Management Plan
China National
Gold Group Asset State-owned
1.51%1068181810681818
Management Co. corporation
Ltd.Domestic
Chen Beiwen 1.03% 7272727 7272727
individual
Enjoy(Ningbo)Ass Other 0.97% 6818181 6818181et Management
L.P.-Enjoy
Yingshanhong
No.9 Private
Securities
Investment Fund
Changzhou
Transportation
Construction State-owned
0.67%47454544545454
Investment corporation
Development Co.Ltd.Domestic
Yao Jianquan 0.64% 4545454 4545454
individual
Domestic
Sun Meichun 0.64% 4545454 4545454
individual
Jiangxi Jintou Domestic
Industrial non-state-o
0.64%45454544545454
Development Co. wned
Ltd. corporation
Domestic
Minmetals non-state-o
0.64%45454544545454
Securities Co. Ltd. wned
corporation
Top 10 unrestricted shareholders
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
RMB-denominate
Chen Jian 3492700 3492700
d ordinary share
Domestically
KGI ASIA LIMITED 3101695 listed foreign 3101695
share
Domestically
Li Suinan 1548100 listed foreign 1548100
share
Domestically
Huang Guoliang 1528891 listed foreign 1528891
share
RMB-denominate
Wang Zefeng 1386747 1386747
d ordinary share
Domestically
Lu Zhang 1337012 listed foreign 1337012
share
Tao Xiaofang 1240000 RMB-denominate 1240000d ordinary share
Domestically
Xue Hong 1240000 listed foreign 1240000
share
RMB-denominate
Chen Xiaojing 1195800 1195800
d ordinary share
RMB-denominate
Zhang Baoshan 1150000 1150000
d ordinary share
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.Chen Jian Wang Zefeng and Chen Xiaojing respectively held 1966800
Top 10 shareholders engaged in
1386747 and 1194000 shares in the Company through their credit
securities margin trading (if any)
accounts.III Other Significant Events
√ Applicable □ Not applicable
1. Non-public offering of shares
On 9 April 2020 the 24th meeting of the 8th board of directors of the Company discussed and approved the
Non-public Offering Plan of the Company for 2020. The Company intended to make non-public issuance of
domestic common shares listed in RMB to specific objects and this matter was approved by the controlling
shareholder Changzhou Investment Group Co. Ltd. and was reviewed and adopted in the meeting of shareholders
of 2019. On 18 September 2020 the temporary meeting of the board of directors of the Company discussed and
approved the relevant revision matters concerning non-public issuance of shares the Company supplemented and
improved the foresaid plan according to the relevant revision matters and prepared the Non-public Offering Plan
of the Company for 2020 (Revision Version) which was discussed and approved in the second temporary meeting
of shareholders in 2020.On 17 December 2020 the Company received the Reply concerning the Approval of the Non-public Offering of
Shares of Changchai Company Limited (ZJXK [2020] No. 3374) from the China Securities Regulatory
Commission which approved the non-public offering of up to 168412297 shares of the Company. The
Company's offered 144318181 RMB ordinary shares (A shares) in a non-public manner. The issuing price was
RMB4.40 per share total amount raised was RMB634999936.40 and the net amount raised was
RMB622499996.40. The new shares issued in a non-public manner were listed on the Shenzhen Stock Exchange
on 5 July 2021. For details please refer to the Report on Non-public Offering by Changchai Company Limited
and Listing Bulletin disclosed by the Company on www.cninfo.com.cn on 1 July 2021. The Company has
completed the capital registration industrial and commercial registration of changes and revision of articles of
association.IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company Limited
30 September 2021
Unit: RMB
Item 30 September 2021 31 December 2020
Current assets:
Monetary assets 672734056.90 760728222.85
Settlement reserve
Loans to other banks and financial institutions
Held-for-trading financial assets 321347440.00 11500272.00
Derivative financial assets
Notes receivable 346652281.02 600140938.05
Accounts receivable 1033370187.93 397154016.49
Receivables financing
Prepayments 10885260.69 9357840.75
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 4002431.93 6212062.80
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 589150932.87 606680340.55
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 19625671.20 27299362.72
Total current assets 2997768262.54 2419073056.21
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments
Investments in other equity instruments 829767691.82 685137950.87
Other non-current financial assets 234801290.76 98732938.63
Investment property 44583070.43 46239326.03Fixed assets 415214477.96 454181555.68
Construction in progress 117018095.85 66502432.41
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 155021871.48 158870631.71
Development costs
Goodwill
Long-term prepaid expense 65002.89 13693.20
Deferred income tax assets 4231873.15 4231873.15
Other non-current assets 63853284.81 19971006.56
Total non-current assets 1864556659.15 1533881408.24
Total assets 4862324921.69 3952954464.45
Current liabilities:
Short-term borrowings 12000000.00 22000000.00
Borrowings from the central bank
Loans from other banks and financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 656796159.50 595346000.00
Accounts payable 587456913.85 612757392.46
Advances from customers 661612.17
Contract liabilities 37772926.63 35944517.15
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 14007846.80 50127161.47
Taxes and levies payable 4044397.46 2869485.41
Other payables 235066490.82 197545076.08
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 6106039.32 5233947.12
Total current liabilities 1553250774.38 1522485191.86
Non-current liabilities:Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 42179737.60 56949737.60
Deferred income tax liabilities 124661259.24 80671598.82
Other non-current liabilities
Total non-current liabilities 166840996.84 137621336.42
Total liabilities 1720091771.22 1660106528.28
Owners’ equity:
Share capital 705692507.00 561374326.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 640676218.40 164328665.43
Less: Treasury stock
Other comprehensive income 548418038.05 425482758.24
Specific reserve 18812986.55 18812986.55
Surplus reserves 325451531.14 325451531.14
General reserve
Retained earnings 883609793.08 777899079.66
Total equity attributable to owners of the Company
3122661074.222273349347.02
as the parent
Non-controlling interests 19572076.25 19498589.15
Total owners’ equity 3142233150.47 2292847936.17
Total liabilities and owners’ equity 4862324921.69 3952954464.45
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2021 Q1~Q3 2020
1. Revenues 1981354126.38 1751860265.23
Including: Operating revenue 1981354126.38 1751860265.23
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 1942537176.98 1694490647.57
Including: Cost of sales 1709842352.28 1468409717.46
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 9599626.55 9673762.22
Selling expense 97211507.42 102089329.05
Administrative expense 69073749.70 57818820.36
R&D expense 55986252.72 49447182.62
Finance costs 823688.31 7051835.86
Including: Interest expense 5806935.93 5384379.68
Interest income 7246601.53 4563438.25
Add: Other income 766454.70 5695097.89
Return on investment (“-” for loss) 8663940.64 5503903.85
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) 101609123.57
Credit impairment loss (“-” for loss) -13804149.22 -7335779.05
Asset impairment loss (“-” for loss) -7356415.78 -17398507.67
Asset disposal income (“-” for loss) 6459.16 181780.55
3. Operating profit (“-” for loss) 128702362.47 44016113.23
Add: Non-operating income 1268521.68 628068.52
Less: Non-operating expense 481411.09 424278.65
4. Gross profit (“-” for loss) 129489473.06 44219903.10
Less: Income tax expense 23705272.54 5108476.055. Net profit (“-” for net loss) 105784200.52 39111427.05
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 105784200.52 39111427.05
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the
105710713.4238953778.68
parent
5.2.1 Net profit attributable to non-controlling interests 73487.10 157648.37
6. Other comprehensive income net of tax 122935279.81 22732693.67
Attributable to owners of the Company as the parent 122935279.81 22732693.67
6.1 Items that will not be reclassified to profit or loss 122935279.81 22732693.67
6.1.1 Changes caused by remeasurements on defined
benefit schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other
122935279.8122732693.67
equity instruments
6.1.4 Changes in the fair value arising from changes in own
credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss
6.2.1 Other comprehensive income that will be reclassified
to profit or loss under the equity method
6.2.2 Changes in the fair value of other debt investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt
investments
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 228719480.33 61844120.72
Attributable to owners of the Company as the parent 228645993.23 61686472.35
Attributable to non-controlling interests 73487.10 157648.37
8. Earnings per share
8.1 Basic earnings per share 0.1734 0.0694
8.2 Diluted earnings per share 0.1734 0.0694
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2021 Q1~Q3 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1631589730.091611643141.67
services
Net increase in customer deposits and deposits from other
banks and financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest fees and commissions received
Net increase in loans from other banks and financial
institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 33014359.71 21886374.72
Cash generated from other operating activities 10218300.82 11604073.90
Subtotal of cash generated from operating activities 1674822390.62 1645133590.29
Payments for commodities and services 1610525132.37 1284823979.81
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other
banks and financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial
institutions
Interest fees and commissions paid
Policy dividends paid
Cash paid to and for employees 253758615.93 220889699.06
Taxes and levies paid 31954409.88 32562156.11
Cash used in other operating activities 94769972.55 89171955.10
Subtotal of cash used in operating activities 1991008130.73 1627447790.08
Net cash generated from/used in operating activities -316185740.11 17685800.21
2. Cash flows from investing activities:
Proceeds from disinvestment 28222100.00 29773443.16
Return on investment 8762954.14 5503903.85
Net proceeds from the disposal of fixed assets intangible
815419.17108370.88
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and otherbusiness units
Cash generated from other investing activities 97150.00
Subtotal of cash generated from investing activities 37800473.31 35482867.89
Payments for the acquisition of fixed assets intangible
120898051.55114151611.40
assets and other long-lived assets
Payments for investments 344772100.00 25022956.16
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 930300.00
Subtotal of cash used in investing activities 465670151.55 140104867.56
Net cash generated from/used in investing activities -427869678.24 -104621999.67
3. Cash flows from financing activities:
Capital contributions received 634999996.40
Including: Capital contributions by non-controlling
interests to subsidiaries
Borrowings received 7000000.00 20000000.00
Cash generated from other financing activities 1391000.00
Subtotal of cash generated from financing activities 643390996.40 20000000.00
Repayment of borrowings 17000000.00 20000000.00
Interest and dividends paid 1307343.28 2280722.28
Including: Dividends paid by subsidiaries to
non-controlling interests
Cash used in other financing activities 12694998.37
Subtotal of cash used in financing activities 31002341.65 22280722.28
Net cash generated from/used in financing activities 612388654.75 -2280722.28
4. Effect of foreign exchange rates changes on cash and cash
-401452.02
equivalents
5. Net increase in cash and cash equivalents -131666763.60 -89618373.76
Add: Cash and cash equivalents beginning of the period 629939540.50 545959998.20
6. Cash and cash equivalents end of the period 498272776.90 456341624.44
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He(II) Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of the New
Standards Governing Leases from 2021
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of the New
Standards Governing Leases from 2021
□ Applicable √ Not applicable
(III) Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□ Yes √ No
These financial statements have not been audited by such an auditor.The Board of Directors
Changchai Company Limited
29 October 2021
沪公网安备31011802005267号
