Changchai Company Limited First Quarterly Report 2024

Stock Code: 000570 200570 Stock Name: Changchai Changchai-B Announcement No. 2024-015

CHANGCHAI COMPANY LIMITED

FIRST QUARTERLY REPORT 2024

Changchai Company Limited (hereinafter referred to as the “Company”) and all the members of the

Company’s Board of Directors hereby guarantee that the contents of this Report are true accurate and complete

and free of any misrepresentations misleading statements or material omissions.Important Notes:

1. The Board of Directors the Supervisory Committee as well as the directors supervisors and senior

management of the Company hereby guarantee that the contents of this Report are true accurate and complete

and free of any misrepresentations misleading statements or material omissions and collectively and

individually accept legal responsibility for such contents.

2. The Company’s legal representative General Manager and head of the financial department (equivalent to

financial manager) hereby guarantee that the financial statements carried in this Report are true accurate and

complete.

3. Indicate whether the financial statements in this Report have been audited by an independent auditor.

□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No

Q1 2024 Q1 2023 YoY change (%)

Operating revenue (RMB) 836479520.73 703102297.70 18.97%

Net profit attributable to the listed company’s

32382777.7023934592.5435.30%

shareholders (RMB)

Net profit attributable to the listed company’s

39340826.681107543.073452.08%

shareholders before exceptional items (RMB)

Net cash generated from/used in operating

-16877796.78-71086048.66——

activities (RMB)

Basic earnings per share (RMB/share) 0.0459 0.0339 35.40%

Diluted earnings per share (RMB/share) 0.0459 0.0339 35.40%

Weighted average return on equity (%) 0.95% 0.73% 0.22%

1Changchai Company Limited First Quarterly Report 2024

31 March 2024 31 December 2023 Change (%)

Total assets (RMB) 5310015979.74 5159394958.92 2.92%

Equity attributable to the listed company’s

3455988885.603398946911.231.68%

shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q1 2024 Note

Gain or loss on disposal of non-current

assets (inclusive of impairment allowance 421678.54

write-offs)

Government grants recognised in profit or

loss (exclusive of those that are closely

related to the Company's normal business

operations and given in accordance with

205752.64

defined criteria and in compliance with

government policies and have a

continuing impact on the Company's profit

or loss)

Gain or loss on fair-value changes in Decrease in the fair value of stocks of

financial assets and liabilities held by a Jiangsu Liance Electromechanical

non-financial enterprise as well as on Technology Co. Ltd. and Kailong High

disposal of financial assets and liabilities -12754548.76 Technology Co. Ltd. held by the

(exclusive of the effective portion of Company’s wholly-owned subsidiary

hedges that is related to the Company's Changzhou Horizon Investment Co. Ltd.normal business operations) at the period-end.Non-operating income and expense other

266860.33

than the above

Less: Income tax effects -4901912.10

Non-controlling interests effects

-296.17

(net of tax)

Total -6958048.98 --

Other items that meet the definition of exceptional gain/loss:

□ Applicable √ Not applicable

No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the

Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the

Public—Exceptional Gain/Loss Items:

□ Applicable √ Not applicable

No such cases in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why

√ Applicable □ Not applicable

1. Consolidated Balance Sheet Items

31 March 2024 1 January 2024

Item Change (%) Explanation of why

(RMB) (RMB)

2Changchai Company Limited First Quarterly Report 2024

Increase in wealth management

Trading financial

392073902.48 225641429.94 73.76% products purchased in the Reporting

assets

Period

Most of the Company’s multi-

cylinder diesel engine customers

are supporting companies of main

engine which are usually given

Accounts longer payment days and the

927309793.04316543159.91192.95%

receivable Company properly allowed

customers’ buying on credit for

more markets to step up efforts to

expand the market due to the

product emission upgrading

Discounting some bank acceptance

Receivables

43039962.27 195875948.92 -78.03% bills with higher credit rating in the

financing

Reporting Period

Receiving the remaining housing

expropriation compensation of

Other receivables 8369962.10 49699753.61 -83.16%

Changzhou Wuxing branch

company in the Reporting Period

Other current

11246642.93 20910504.84 -46.22% Decreased overpaid value added tax

assets

Decrease in prepayment for

Other non-

1439496.77 2578776.77 -44.18% purchasing equipment in the

current assets

Reporting Period

Salaries and bonuses accrued last

Employee

19915758.78 47738883.57 -58.28% period were paid in the Reporting

benefits payable

Period

Taxes and levies Increased value added tax payable

33356751.036231169.74435.32%

payable and other taxes and levies payable

Increase in transferred bank

Other current acceptance bills before maturity

91687395.0867069965.9636.70%

liabilities with low credit rating in the

Reporting Period

2. Consolidated Income Statement Items

Item Q1 2024 (RMB) Q1 2023 (RMB) Change (%) Explanation of why

Development Increase in investment in R&D

20281737.9415089418.2734.41%

costs projects in the Reporting Period

Increased exchange gains and

Finance costs -3640059.02 2888672.62 ——

decreased interest expenses

Other income 205752.64 1110261.12 -81.47% Decreased government grants

Return on YoY decrease in interest income

523222.062726741.04-80.81%

investment from trading financial assets

Decrease in the fair value of stocks

of Jiangsu Liance Electromechanical

Technology Co. Ltd. and Kailong

Gain on changes High Technology Co. Ltd. held by

-13802251.4525718114.28-153.67%

in fair value the Company’s wholly-owned

subsidiary Changzhou Horizon

Investment Co. Ltd. at the period-

end.

3Changchai Company Limited First Quarterly Report 2024

Increase in impairment losses

Credit provided accordingly to the increase

-11899204.76-7540965.36——

impairment loss in accounts receivable in the

Reporting Period

Asset impairment

421678.54 16000.00 2535.49% Disposal of fixed assets

loss

Decrease in fair value of trading

financial assets held by the

Company’s wholly-owned

Income tax subsidiary Changzhou Horizon

5272662.377666120.91-31.22%

expense Investment Co. Ltd. and

corresponding decrease in deferred

income tax liabilities in the

Reporting Period

Net profit Increase in sales proportion of

attributable to products with higher gross profit

shareholders of 32382777.70 23934592.54 35.30% margins with the optimization of the

the Company as sales structure of the Company’s

the parent products in the Reporting Period

3. Consolidated Cash Flow Statement Items

Item Q1 2024 (RMB) Q1 2023 (RMB) Change (%) Explanation of why

Net cash Decrease in cash paid to customers

generated for purchase due to that the

from/used in -16877796.78 -71086048.66 —— Company digested the previous

operating year’s inventory goods in the

activities Reporting Period

Net cash

generated Increase in investment in wealth

from/used in -187867211.79 -119390601.99 —— management in the Reporting

investing Period

activities

Net cash

There were no financing activities

generated

in the Reporting Period but there

from/used in 0.00 -69125.00 ——

was repayment of interest by

financing

subsidiaries in the prior year

activities

II Shareholder Information

(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well

as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary Number of preference shareholders with resumed

566860

shareholders voting rights

Top 10 shareholders (exclusive of shares lent in refinancing)

Shares in pledge marked

Name of Nature of Shareholdin Total shares Restricted or frozen

shareholder shareholder g percentage held shares held

Status Shares

Changzhou

State-owned

Investment 32.26% 227663417.00 56818181.00 N/A 0.00

corporation

Group Co.

4Changchai Company Limited First Quarterly Report 2024

Ltd.Domestic

Song Yang 0.71% 5000000.00 0.00 N/A 0.00

individual

Domestic

Chen Jian 0.55% 3862800.00 0.00 N/A 0.00

individual

KGI ASIA Foreign

0.44% 3101695.00 0.00 N/A 0.00

LIMITED corporation

Domestic

Wu Chunhua 0.35% 2442200.00 0.00 N/A 0.00

individual

Domestic

Lu Zhang 0.30% 2090243.00 0.00 N/A 0.00

individual

Goldman Foreign

0.28% 1945467.00 0.00 N/A 0.00

Sachs LLC corporation

BARCLAYS Foreign

0.26% 1835622.00 0.00 N/A 0.00

BANK PLC corporation

Chen Domestic

0.23% 1633600.00 0.00 N/A 0.00

Hengjun individual

Domestic

Li Suinan 0.23% 1593800.00 0.00 N/A 0.00

individual

Top 10 unrestricted shareholders

Unrestricted ordinary shares Shares by class

Name of shareholder

held Class Shares

Changzhou Investment Group RMB-denominated

170845236.00170845236.00

Co. Ltd. ordinary share

RMB-denominated

Song Yang 5000000.00 5000000.00

ordinary share

RMB-denominated

Chen Jian 3862800.00 3862800.00

ordinary share

Domestically listed

KGI ASIA LIMITED 3101695.00 3101695.00

foreign share

RMB-denominated

Wu Chunhua 2442200.00 2442200.00

ordinary share

Domestically listed

Lu Zhang 2090243.00 2090243.00

foreign share

RMB-denominated

Goldman Sachs LLC 1945467.00 1945467.00

ordinary share

RMB-denominated

BARCLAYS BANK PLC 1835622.00 1835622.00

ordinary share

RMB-denominated

Chen Hengjun 1633600.00 1633600.00

ordinary share

Domestically listed

Li Suinan 1593800.00 1593800.00

foreign share

It is unknown whether there is among the top 10 public

shareholders and the top 10 unrestricted public shareholders

Related or acting-in-concert parties among

any related parties or acting-in-concert parties as defined in the

the shareholders above

Administrative Measures for Information Regarding

Shareholding Alteration.Shareholders Chen Jian and Wu Chunhua respectively held

Top 10 shareholders engaged in securities

3022800 shares and 2442200 shares in the Company through

margin trading

their credit accounts.

5Changchai Company Limited First Quarterly Report 2024

(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

III 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

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. The

Company received the first compensation of RMB30 million in the Reporting Period.

6Changchai Company Limited First Quarterly Report 2024

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Changchai Company Limited

31 March 2024

Unit: RMB

Item 31 March 2024 1 January 2024

Current assets:

Monetary assets 856670442.52 1083867966.87

Settlement reserve

Loans to other banks and

financial institutions

Held-for-trading financial assets 392073902.48 225641429.94

Derivative financial assets

Notes receivable 113604375.63 161632567.94

Accounts receivable 927309793.04 316543159.91

Receivables financing 43039962.27 195875948.92

Prepayments 10894841.77 12333310.85

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 8369962.10 49699753.61

Including: Interest receivable

Dividends

receivable

Financial assets purchased under

resale agreements

Inventories 637704906.34 789220185.68

Including: Data resource

Contract assets

Assets held for sale

Current portion of non-current

40773509.7540773509.75

assets

Other current assets 11246642.93 20910504.84

Total current assets 3041688338.83 2896498338.31

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

7Changchai Company Limited First Quarterly Report 2024

Long-term equity investments

Investments in other equity

997802025.67969488025.67

instruments

Other non-current financial

412914576.80412914576.80

assets

Investment property 39313379.72 39837558.11

Fixed assets 656580629.54 675596920.95

Construction in progress 4438282.27 4275622.18

Productive living assets

Oil and gas assets

Right-of-use assets

Intangible assets 146380637.41 148458185.68

Including: Data resource

Development costs

Including: Data resource

Goodwill

Long-term prepaid expense 7939616.94 8227958.66

Deferred income tax assets 1518995.79 1518995.79

Other non-current assets 1439496.77 2578776.77

Total non-current assets 2268327640.91 2262896620.61

Total assets 5310015979.74 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 560693656.21 528139582.33

Accounts payable 612997833.81 641484184.05

Advances from customers 30647441.22 1647441.22

Contract liabilities 40073982.98 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 19915758.78 47738883.57

Taxes and levies payable 33356751.03 6231169.74

Other payables 186400648.38 159023382.81

8Changchai Company Limited First Quarterly Report 2024

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 91687395.08 67069965.96

Total current liabilities 1575773467.49 1484687487.34

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 32795896.48 32795896.48

Deferred income tax liabilities 172670628.68 171843455.52

Other non-current liabilities

Total non-current liabilities 205466525.16 204639352.00

Total liabilities 1781239992.65 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 691247221.82 667180321.82

Specific reserve 20024386.19 19432089.52

Surplus reserves 363695592.34 363695592.34

General reserve

Retained earnings 1034819502.41 1002436724.71

Total equity attributable to owners

3455988885.603398946911.23

of the Company as the parent

Non-controlling interests 72787101.49 71121208.35

Total owners’ equity 3528775987.09 3470068119.58

9Changchai Company Limited First Quarterly Report 2024

Total liabilities and owners’ equity 5310015979.74 5159394958.92

Legal representative: Xie Guozhong General Manager: Xie Guozhong

Head of the accounting department: Jiang He

2. Consolidated Income Statement

Unit: RMB

Item Q1 2024 Q1 2023

1. Revenues 836479520.73 703102297.70

Including: Operating revenue 836479520.73 703102297.70

Interest revenue

Insurance premium income

Fee and commission income

2. Costs and expenses 772816412.40 691918401.77

Including: Cost of sales 689569001.62 610046549.40

Interest costs

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 4683468.33 3617737.48

Selling expense 35869182.08 34136631.64

Administrative expense 26053081.45 26139392.36

R&D expense 20281737.94 15089418.27

Finance costs -3640059.02 2888672.62

Including: Interest costs 587604.70 2590486.99

Interest revenue 3080070.64 3370700.72

Add: Other income 205752.64 1110261.12

Return on investment (“-” for loss) 523222.06 2726741.04

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) -13802251.45 25718114.28

Credit impairment loss (“-” for loss) -11899204.76 -7540965.36

Asset impairment loss (“-” for loss) -57832.48

Asset disposal income (“-” for loss) 421678.54 16000.00

3. Operating profit (“-” for loss) 39054472.88 33214047.01

10Changchai Company Limited First Quarterly Report 2024

Add: Non-operating income 370474.42 380282.59

Less: Non-operating expense 103614.09 99246.35

4. Gross profit (“-” for loss) 39321333.21 33495083.25

Less: Income tax expense 5272662.37 7666120.91

5. Net profit (“-” for net loss) 34048670.84 25828962.34

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 34048670.84 25828962.34

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

32382777.7023934592.54

parent

5.2.2 Net profit attributable to non-controlling interests 1665893.14 1894369.80

6. Other comprehensive income net of tax 24066900.00 78150700.00

Attributable to owners of the Company as the parent 24066900.00 78150700.00

6.1 Items that will not be reclassified to profit or loss 24066900.00 78150700.00

6.1.1 Changes caused by remeasurements on defined

benefit schemes

6.1.2 Other comprehensive income that will not be

reclassified to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other

24066900.0078150700.00

equity instruments

6.1.4 Changes in the fair value arising from changes in

own credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss

6.2.1 Other comprehensive income that will be reclassified

to profit or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt

investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests

7. Total comprehensive income 58115570.84 103979662.34

Attributable to owners of the Company as the parent 56449677.70 102085292.54

Attributable to non-controlling interests 1665893.14 1894369.80

8. Earnings per share

8.1 Basic earnings per share 0.0459 0.0339

8.2 Diluted earnings per share 0.0459 0.0339

Legal representative: Xie Guozhong General Manager: Xie Guozhong

Head of the accounting department: Jiang He

11Changchai Company Limited First Quarterly Report 2024

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2024 Q1 2023

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 456415221.66 447807917.75

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 6692216.64 13664218.21

Cash generated from other operating activities 6180466.59 4216912.24

Subtotal of cash generated from operating activities 469287904.89 465689048.20

Payments for commodities and services 340923732.36 387355660.67

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 91776376.54 96431976.19

Taxes and levies paid 10294557.87 10202886.37

Cash used in other operating activities 43171034.90 42784573.63

Subtotal of cash used in operating activities 486165701.67 536775096.86

Net cash generated from/used in operating activities -16877796.78 -71086048.66

2. Cash flows from investing activities:

Proceeds from disinvestment 101700000.00 339016751.99

Return on investment 711860.42 2726741.04

Net proceeds from the disposal of fixed assets intangible assets

422378.5416000.00

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 102834238.96 341759493.03

Payments for the acquisition of fixed assets intangible assets

8657126.75119772481.02

and other long-lived assets

12Changchai Company Limited First Quarterly Report 2024

Payments for investments 282044324.00 341377614.00

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 290701450.75 461150095.02

Net cash generated from/used in investing activities -187867211.79 -119390601.99

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by non-controlling interests

to subsidiaries

Borrowings received

Cash generated from other financing activities

Subtotal of cash generated from financing activities

Repayment of borrowings

Interest and dividends paid 69125.00

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities

Subtotal of cash used in financing activities 69125.00

Net cash generated from/used in financing activities -69125.00

4. Effect of foreign exchange rates changes on cash and cash

equivalents

5. Net increase in cash and cash equivalents -204745008.57 -190545775.65

Add: Cash and cash equivalents beginning of the period 971629523.46 810350966.05

6. Cash and cash equivalents end of the period 766884514.89 619805190.40

Legal representative: Xie Guozhong General Manager: Xie Guozhong

Head of the accounting department: Jiang He

(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation

of the New Accounting Standards Implemented since 2024

□ 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

30 April 2024

13