Changchai Company Limited Third Quarterly Report 2024
Stock Code: 000570 200570 Stock Name: Changchai Changchai-B Announcement No. 2024-033
CHANGCHAI COMPANY LIMITED
THIRD 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
Q3 2024 YoY change (%) Q1-Q3 2024 YoY change (%)
Operating revenue
462057774.620.76%1957966927.258.23%
(RMB)
Net profit attributable to
the listed company’s -3740213.65 —— 46357441.50 -70.45%
shareholders (RMB)
Net profit attributable to
the listed company’s
-17209332.16——42636932.81——
shareholders before
exceptional items (RMB)
Net cash generated
from/used in operating —— —— -310799569.86 ——
activities (RMB)
Basic earnings per share
-0.0053——0.0657-70.45%
(RMB/share)
Diluted earnings per
-0.0053——0.0657-70.45%
share (RMB/share)
1Changchai Company Limited Third Quarterly Report 2024
Weighted average return
-0.11%-0.82%1.34%-3.33%
on equity (%)
30 September 2024 31 December 2023 Change (%)
Total assets (RMB) 5398904258.62 5159394958.92 4.64%
Equity attributable to the
listed company’s 3448089849.78 3398946911.23 1.45%
shareholders (RMB)
(II) Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
Item Q3 2024 Q1-Q3 2024 Note
Gain or loss on disposal of
non-current assets (inclusive of
-192127.32216118.22
impairment allowance 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
172906.00365991.00
in accordance with defined
criteria and in compliance with
government policies and have
a continuing impact on the
Company's profit or loss)
It was mainly attributable to the
financial gains arising from the
Gain or loss on fair-value
Company’s cash management
changes in financial assets and
and the changes in the fair
liabilities held by a non-
value of the stocks of Jiangsu
financial enterprise as well as
Liance Electromechanical
on disposal of financial assets 10507456.38 -8177138.59
Technology Co. Ltd. and
and liabilities (exclusive of the
Kailong High Technology Co.effective portion of hedges that
Ltd. held by the Company’s
is related to the Company's
wholly-owned subsidiary
normal business operations)
Changzhou Horizon Investment
Co. Ltd.Reversed portion of
impairment allowance for
accounts receivable which are 6215662.64 6215662.64
tested individually for
impairment
Non-operating income and
228456.261031656.86
expense other than the above
Less: Income tax effects 3481348.93 -4228193.27
Non-controlling interests
-18113.48159974.71
effects (net of tax)
Total 13469118.51 3720508.69
Other items that meet the definition of exceptional gain/loss:
□ Applicable □ Not applicable
2Changchai Company Limited Third Quarterly Report 2024
No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable □ Not applicable
No such cases in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why
□ Applicable □ Not applicable
1. Consolidated Balance Sheet Items
30 September 1 January 2024 Change
Item Explanation of why
2024 (RMB) (RMB) (%)
Increase in cash dividends cash used in
operating activities and purchase of wealth
Monetary assets 615448491.57 1083867966.87 -43.22%
management products in the Reporting
Period.Increase in wealth management products
Trading financial
443908871.55 225641429.94 96.73% purchased by the Company in the Reporting
assets
Period.Increase of accounts receivable since most of
the Company’s multi-cylinder diesel engine
customers are supporting companies of main
Accounts engine which are usually given longer
1251532755.81316543159.91295.38%
receivable payment days and the Company properly
allowed customers’ buying on credit for
more markets to step up efforts to expand the
market.Decrease in bank acceptance bills with
Receivables
48891443.83 195875948.92 -75.04% higher credit rating held by the Company at
financing
the end of the Reporting Period.Receiving the remaining housing
Other receivables 5616318.99 49699753.61 -88.70% expropriation compensation of Changzhou
Wuxing Branch Company.Current portion of Expiration of three-year fixed time deposits
0.0040773509.75-100.00%
non-current assets during the Reporting Period.Construction in Increase in input of the Company in
6415304.754275622.1850.04%
progress technical transformation project.This mainly resulted from the increase in bad
Deferred income
4174238.86 1518995.79 174.80% debt provision which led to an increase in
tax assets
deferred tax assets.Other non-current Decrease in prepayment for purchasing
1439496.772578776.77-44.18%
assets equipment in the Reporting Period.This is mainly due to the fact that companies
Notes payable 723830422.54 528139582.33 37.05% pay for goods in the form of bank drafts
more often.Receiving the first installment of
Advances from
30499552.75 1647441.22 1751.33% compensation for Sanjing Land in advance in
customers
the Reporting Period.Employee benefits Salaries and bonuses accrued last period
10173471.0647738883.57-78.69%
payable were paid in the Reporting Period.Other current 44296616.19 67069965.96 -33.95% Expiration of payment business for
3Changchai Company Limited Third Quarterly Report 2024
liabilities unexpired but transferred notes.
2. Consolidated Income Statement Items for Q1~Q3
Q1~Q3 2024 Q1~Q3 2023 Change
Item Explanation of why
(RMB) (RMB) (%)
Increased exchange gains and decreased
Finance costs -9749152.97 -4386564.04 ——
interest expenses.Decrease in the fair value of stocks of
Jiangsu Liance Electromechanical
Technology Co. Ltd. and Kailong High
Gain on changes Technology Co. Ltd. held by the Company’s
-25457675.3150146450.23——
in fair value wholly-owned subsidiary Changzhou
Horizon Investment Co. Ltd. in the
Reporting Period compared to the beginning
of the period.Expropriation of constructions on the state-
Asset disposal owned land of Changzhou Wuxing Branch
216118.22105700898.12-99.80%
income Company in the previous period while there
was no such matter in the current period.Non-operating Disposal of non-payments during the
1406648.75635091.37121.49%
income Reporting Period.Non-operating Decreased abandonment losses during the
374991.892376057.47-84.22%
expense Reporting Period.This mainly resulted from the decrease in
Income tax
6488637.31 12136766.20 -46.54% profits during the reporting period and the
expense
changes in deferred tax assets and liabilities.Expropriation of constructions on the state-
owned land of Changzhou Wuxing Branch
Company in the previous period and increase
in fair value of equity held by the Company
Net profit in Jiangsu Horizon New Energy Technology
attributable to Co. Ltd. while there were no such matters in
shareholders of 46357441.50 156869023.89 -70.45% the current period; Decrease in the fair value
the Company as of stocks of Jiangsu Liance
the parent Electromechanical Technology Co. Ltd. and
Kailong High Technology Co. Ltd. held by
the Company’s wholly-owned subsidiary
Changzhou Horizon Investment Co. Ltd.compared to the beginning of the period.
3. Consolidated Cash Flow Statement Items for Q1~Q3
Q1~Q3 2024 Q1~Q3 2023 Change
Item Explanation of why
(RMB) (RMB) (%)
Most of the Company’s multi-cylinder diesel
engine customers are supporting companies
Net cash
of main engine which are usually given
generated
longer payment days and the Company
from/used in -310799569.86 -214128249.30 ——
properly allowed customers’ buying on
operating
credit for more markets to step up efforts to
activities
expand the market relative to the capital
return of less.Net cash Increase in investment in wealth
generated management in the Reporting Period
-196693373.0412802394.50——
from/used in
investing
4Changchai Company Limited Third Quarterly Report 2024
activities
Net cash Increase in the amount of cash dividends
generated paid by the Company during the Reporting
from/used in -33171402.31 -8773914.91 —— P eriod in order to improve the return on
financing investment
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
516590
shareholders resumed voting rights (if any)
Top 10 shareholders (exclusive of shares lent in refinancing)
Restricted Shares in pledge marked or
Name of Nature of Shareholding Total shares
shares frozen
shareholder shareholder percentage held
held Status Shares
Changzhou
Investment State-owned
32.26%227663417
Group Co. corporation
Ltd.Domestic
Chen Jian 0.55% 3915600
individual
KGI ASIA Foreign
0.44%3100195
LIMITED corporation
Domestic
Wu Chunhua 0.32% 2236500
individual
Chen Domestic
0.23% 1649100 0 N/A 0
Hengjun individual
Domestic
Li Suinan 0.23% 1600300
individual
Zhang Domestic
0.22%1556700
Wenbing individual
Huang Domestic
0.22%1528891
Guoliang individual
Domestic
Lu Zhang 0.21% 1486743
individual
Domestic
Xue Hong 0.20% 1380600
individual
Top 10 unrestricted shareholders (exclusive of shares lent in refinancing and locked shares of executives)
Shares by class
Name of shareholder Unrestricted shares held
Class Shares
RMB-
Changzhou Investment Group
227663417 denominated 227663417
Co. Ltd.ordinary share
RMB-
Chen Jian 3915600 denominated 3915600
ordinary share
Domestically
KGI ASIA LIMITED 3100195 listed foreign 3100195
share
5Changchai Company Limited Third Quarterly Report 2024
RMB-
Wu Chunhua 2236500 denominated 2236500
ordinary share
RMB-
Chen Hengjun 1649100 denominated 1649100
ordinary share
Domestically
Li Suinan 1600300 listed foreign 1600300
share
RMB-
Zhang Wenbing 1556700 denominated 1556700
ordinary share
Domestically
Huang Guoliang 1528891 listed foreign 1528891
share
Domestically
Lu Zhang 1486743 listed foreign 1486743
share
Domestically
Xue Hong 1380600 listed foreign 1380600
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 the
any related parties or acting-in-concert parties as defined in
shareholders above
the Administrative Measures for Information Regarding
Shareholding Alteration.Shareholders Chen Jian and Wu Chunhua respectively held
Top 10 shareholders engaged in securities
3915600 and 2236500 shares in the Company through their
margin trading
credit accounts.
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
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable □ Not applicable
III Other Significant Events
□ Applicable □ Not applicable
On 29 August 2024 the Company convened the 4th Extraordinary Meeting of the Board of Directors and
approved the Proposal on Capital Increase in Jiangsu Changchai Machinery Co. Ltd. The Board agreed that
the Company would increase the capital of its wholly-owned subsidiary Jiangsu Changchai Machinery Co. Ltd.by RMB291835919.91 (including the unpaid interest on the loan of RMB4958090.18) by way of transferring
debts to capital surplus and the entire amount of the capital increase would be included into capital surplus. As
of the end of the Reporting Period the Company has completed the capital increase in Jiangsu Changchai
Machinery Co. Ltd.
6Changchai Company Limited Third Quarterly Report 2024
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company Limited
30 September 2024
Unit: RMB
30 September 2024 1 January 2024
Current assets:
Monetary assets 615448491.57 1083867966.87
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial
443908871.55225641429.94
assets
Derivative financial assets
Notes receivable 137258968.27 161632567.94
Accounts receivable 1251532755.81 316543159.91
Receivables financing 48891443.83 195875948.92
Prepayments 14046192.48 12333310.85
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 5616318.99 49699753.61
Including: Interest
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 616704313.56 789220185.68
Including: Data resource
Contract assets
Assets held for sale 2951451.11
Current portion of non-current
40773509.75
assets
Other current assets 15166800.73 20910504.84
Total current assets 3151525607.90 2896498338.31
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
7Changchai Company Limited Third Quarterly Report 2024
Long-term receivables
Long-term equity investments
Investments in other equity
1009502025.67969488025.67
instruments
Other non-current financial
412914576.80412914576.80
assets
Investment property 38265022.94 39837558.11
Fixed assets 623207067.13 675596920.95
Construction in progress 6415304.75 4275622.18
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 143901435.67 148458185.68
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense 7559482.13 8227958.66
Deferred income tax assets 4174238.86 1518995.79
Other non-current assets 1439496.77 2578776.77
Total non-current assets 2247378650.72 2262896620.61
Total assets 5398904258.62 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 723830422.54 528139582.33
Accounts payable 612980631.68 641484184.05
Advances from customers 30499552.75 1647441.22
Contract liabilities 38261365.80 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 10173471.06 47738883.57
Taxes and levies payable 6437433.36 6231169.74
8Changchai Company Limited Third Quarterly Report 2024
Other payables 205701020.97 159023382.81
Including: Interest payable
Dividends
3891433.833891433.83
payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated
with assets held for sale
Current portion of non-current
liabilities
Other current liabilities 44296616.19 67069965.96
Total current liabilities 1672180514.35 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 30238599.38 32795896.48
Deferred income tax liabilities 171138844.36 171843455.52
Other non-current liabilities
Total non-current liabilities 201377443.74 204639352.00
Total liabilities 1873557958.09 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 701192221.82 667180321.82
Specific reserve 21373234.40 19432089.52
Surplus reserves 363695592.34 363695592.34
General reserve
Retained earnings 1015626618.38 1002436724.71
Total equity attributable to owners
3448089849.783398946911.23
of the Company as the parent
9Changchai Company Limited Third Quarterly Report 2024
Non-controlling interests 77256450.75 71121208.35
Total owners’ equity 3525346300.53 3470068119.58
Total liabilities and owners’ equity 5398904258.62 5159394958.92
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2024 Q1~Q3 2023
1. Revenues 1957966927.25 1809074804.85
Including: Operating revenue 1957966927.25 1809074804.85
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 1880745679.29 1793921012.03
Including: Cost of sales 1640211081.77 1550178804.98
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 12703429.37 11219574.86
Selling expense 99502748.28 91990466.03
Administrative expense 81859808.25 76256928.17
R&D expense 56217764.59 68661802.03
Finance costs -9749152.97 -4386564.04
Including: Interest expense 1893598.30 4289281.12
Interest income 8523735.87 8242392.28
Add: Other income 2979040.74 4244083.10
Return on investment (“-” for loss) 15776718.57 17099924.85
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) -25457675.31 50146450.23
Credit impairment loss (“-” for loss) -12325470.52 -14981433.04
10Changchai Company Limited Third Quarterly Report 2024
Asset impairment loss (“-” for loss) -460315.31 -565273.49
Asset disposal income (“-” for loss) 216118.22 105700898.12
3. Operating profit (“-” for loss) 57949664.35 176798442.59
Add: Non-operating income 1406648.75 635091.37
Less: Non-operating expense 374991.89 2376057.47
4. Gross profit (“-” for loss) 58981321.21 175057476.49
Less: Income tax expense 6488637.31 12136766.20
5. Net profit (“-” for net loss) 52492683.90 162920710.29
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
52492683.90162920710.29
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
46357441.50156869023.89
Company as the parent (“-” for net loss)
5.2.2 Net profit attributable to non-controlling interests
6135242.406051686.40
(“-” for net loss)
6. Other comprehensive income net of tax 34011900.00 77648350.00
Attributable to owners of the Company as the parent 34011900.00 77648350.00
6.1 Items that will not be reclassified to profit or loss 34011900.00 77648350.00
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
34011900.0077648350.00
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 86504583.90 240569060.29
7.1 Attributable to owners of the Company as the parent 80369341.50 234517373.89
7.2 Attributable to non-controlling interests 6135242.40 6051686.40
8. Earnings per share
11Changchai Company Limited Third Quarterly Report 2024
8.1 Basic earnings per share 0.0657 0.2223
8.2 Diluted earnings per share 0.0657 0.2223
Legal representative: Xie Guozhong General Manager: Xie Guozhong
Head of the accounting department: Jiang He
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2024 Q1~Q3 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1322840250.441446377641.19
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 16822139.93 88252376.59
Cash generated from other operating activities 13572617.70 15970772.52
Subtotal of cash generated from operating activities 1353235008.07 1550600790.30
Payments for commodities and services 1263331531.66 1374158537.72
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 224982336.51 242312537.73
Taxes and levies paid 45480904.08 31292358.05
Cash used in other operating activities 130239805.68 116965606.10
Subtotal of cash used in operating activities 1664034577.93 1764729039.60
Net cash generated from/used in operating activities -310799569.86 -214128249.30
2. Cash flows from investing activities:
Proceeds from disinvestment 601500000.00 877716751.99
Return on investment 15776718.57 17099924.85
12Changchai Company Limited Third Quarterly Report 2024
Net proceeds from the disposal of fixed assets intangible
76476578.3358171702.95
assets 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 693753296.90 952988379.79
Payments for the acquisition of fixed assets intangible
14652345.94150108371.29
assets and other long-lived assets
Payments for investments 875794324.00 790077614.00
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 890446669.94 940185985.29
Net cash generated from/used in investing activities -196693373.04 12802394.50
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 33171402.31 8773914.91
Including: Dividends paid by subsidiaries to non-
controlling interests
Cash used in other financing activities
Subtotal of cash used in financing activities 33171402.31 8773914.91
Net cash generated from/used in financing activities -33171402.31 -8773914.91
4. Effect of foreign exchange rates changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -540664345.21 -210099769.71
Add: Cash and cash equivalents beginning of the period 971629523.46 810350966.05
6. Cash and cash equivalents end of the period 430965178.25 600251196.34
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.
13Changchai Company Limited Third Quarterly Report 2024
□Yes □ No
These financial statements have not been audited by such an auditor.The Board of Directors
Changchai Company Limited
30 October 2024
14
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