Changchai Company Limited Third Quarterly Report 2022
Stock Code: 000570 200570 Stock Name: Changchai Changchai-B Announcement No. 2022-059
CHANGCHAI COMPANY LIMITED
THIRD QUARTERLY REPORT 2022
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 2022 YoY change (%) Q1-Q3 2022 YoY change (%)
Operating revenue
545599669.0712.68%1723822161.11-13.00%
(RMB)
Net profit attributable to
the listed company’s 150405621.57 —— 135810351.96 28.47%
shareholders (RMB)
Net profit attributable to
the listed company’s
-5566500.16——-11375860.23——
shareholders before
exceptional items (RMB)
Net cash generated
from/used in operating —— —— -82550839.42 ——
activities (RMB)
Basic earnings per share
0.2131——0.192410.96%
(RMB/share)
Diluted earnings per
0.2131——0.192410.96%
share (RMB/share)
Weighted average return 4.75% 5.50% 4.21% -0.33%
1Changchai Company Limited Third Quarterly Report 2022
on equity (%)
31 December
30 September 2022 Change (%)
2021
Total assets (RMB) 5399636868.12 4860382961.26 11.09%
Equity attributable to the
listed company’s 3301798721.38 3077550018.33 7.29%
shareholders (RMB)
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q3 2022 Q1-Q3 2022 Note
Gain or loss on disposal of non-current assets
0.00-361395.36
(inclusive of impairment allowance write-offs)
Government grants through profit or loss
(exclusive of government grants continuously
given in the Company’s ordinary course of 1443881.22 3046711.99
business at fixed quotas or amounts as per the
government’s policies and standards)
Increased fair value
Gain or loss on fair-value changes on held-for-
of the equity
trading financial assets and liabilities & income
interests held
from disposal of held-for-trading financial assets
directly by the
and liabilities and available-for-sale financial 179686038.72 159941932.72
Company in Jiangsu
assets (exclusive of the effective portion of
Horizon New
hedges that arise in the Company’s ordinary
Energy Technology
course of business)
Co. Ltd.Non-operating income and expense other than
702366.962660006.90
the above
Less: Income tax effects 25851232.01 18094554.73
Non-controlling interests effects (net of
8933.166489.33
tax)
Total 155972121.73 147186212.19 --
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Consolidated Balance Sheet Items
30 September 1 January 2022 Change
Item Explanation of why
2022 (RMB) (RMB) (%)
Held-for-trading Decreased idle funds out of the amount
276615340.50404053261.57-31.54%
financial assets raised in a private placement that were used
2Changchai Company Limited Third Quarterly Report 2022
for investment in wealth management
instruments
Increased bank acceptance notes with low
Notes receivable 466815202.65 334311236.78 39.63% credit ratings that were endorsed and
transferred or undue but discounted
The Company properly allowed customers’
buying on credit for more markets and multi-
Accounts
992868051.36 375209126.48 164.62% cylinder diesel engine customers are mainly
receivable
supporting companies of main engine which
are usually given longer payment days.Receivables Decreased bank acceptance notes with high
140969635.00497388826.02-71.66%
financing credit ratings
Increased gains on changes in the fair value
Other non-current of the equity interests held directly by the
373500000.00112500000.00232.00%
financial assets Company in Jiangsu Horizon New Energy
Technology Co. Ltd.Transfer to fixed assets of wholly-owned
Fixed assets 692380621.81 402915521.65 71.84% subsidiary Jiangsu Changchai Machinery
Co. Ltd.’s construction in progress
Transfer to fixed assets of wholly-owned
Construction in
78925875.74 270305690.91 -70.80% subsidiary Jiangsu Changchai Machinery
progress
Co. Ltd.’s construction in progress
Increased prepayments of wholly-owned
Other non-current subsidiary Jiangsu Changchai Machinery
11611024.844543240.88155.57%
assets Co. Ltd. for construction and engineering
services
Short-term Increased bank acceptance notes with low
244395924.9973971466.65230.39%
borrowings credit ratings that were undue but discounted
Employee benefits Salaries and bonuses accrued last year were
14097513.0245385667.48-68.94%
payable paid in the Reporting Period
Increased fair value of the equity interests
Deferred income
154831307.46 117344161.11 31.95% held directly by the Company in Jiangsu
tax liabilities
Horizon New Energy Technology Co. Ltd.Acquisition of a 41.5% interest in Zhenjiang
Non-controlling
70839131.13 19424230.98 264.69% Siyang Diesel Engine Manufacturing Co.
interests
Ltd.
2. Consolidated Income Statement Items for Q1~Q3
Q1~Q3 2022 Q1~Q3 2021 Change
Item Explanation of why
(RMB) (RMB) (%)
Increased exchange income and interest
Finance costs -19745726.63 823688.31 ——
income.Other income 3046711.99 766454.70 297.51% Increased government grants.Increased gains on cash management with
Return on idle raised funds and own fundsand the
13836894.988663940.6459.71%
investment Company received dividends from Bank of
Jiangsu Co. Ltd.Increased fair value of the equity interests
Gain on changes
147105037.74 101609123.57 44.78% held directly by the Company in Jiangsu
in fair value
Horizon New Energy Technology Co. Ltd.During the reporting period the Company
Asset impairment
4947828.84 -7356415.78 —— withdrew the corresponding provision for
loss
clearing obsolete materials.Non-operating 3745972.29 1268521.68 195.30% Goodwill in relation to the 41.5% interest in
3Changchai Company Limited Third Quarterly Report 2022
income Zhenjiang Siyang Diesel Engine
Manufacturing Co. Ltd. acquired by the
Company.Net profit
Acquisition of a 41.5% interest in Zhenjiang
attributable to
1084518.63 73487.10 1375.79% Siyang Diesel Engine Manufacturing Co.
non-controlling
Ltd.interests
3. Consolidated Cash Flow Statement Items for Q1~Q3
Q1~Q3 2022 Q1~Q3 2021 Change
Item Explanation of why
(RMB) (RMB) (%)
Due to the impact of production and sales
Net cash generated during the reporting period the cash
from/used in -82550839.42 -316185740.11 —— expenditure for production operation and
operating activities procurement decreased and the fund
collection was intensified.This is mainly because Jiangsu Changchai
Net cash generated
Machinery Co. Ltd. invested more in the
from/used in -50712854.83 -427869678.24 ——
construction in the previous period but less
investing activities
in this period.Arrival of funds raised in a private
Net cash generated
placement in the same period of last
from/used in 52000140.67 612388654.75 -91.51%
yearand there is no such event in the
financing activities
current period.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
533930
shareholders resumed voting rights (if any)
Top 10 shareholders
Shares in pledge marked or
Name of Nature of Shareholding Total shares Restricted
frozen
shareholder shareholder percentage held shares held
Status Shares
Changzhou
Investment State-owned
32.26%22766341756818181
Group Co. corporation
Ltd.Domestic
Chen Jian 0.70% 4905900 0
individual
KGI ASIA Foreign
0.44%31016950
LIMITED corporation
Domestic
Dai Wenping 0.38% 2705200 0
individual
Domestic
Yang Xue’e 0.30% 2111900 0
individual
Domestic
Su Zhenxing 0.23% 1592093 0
individual
Domestic
Li Suinan 0.22% 1569100 0
individual
4Changchai Company Limited Third Quarterly Report 2022
Huang Domestic
0.22%15288910
Guoliang individual
Domestic
Xue Hong 0.20% 1398100 0
individual
Domestic
Tao Xiaofang 0.19% 1310000 0
individual
Top 10 unrestricted shareholders
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
RMB-
Changzhou Investment Group
170845236 denominated 170845236
Co. Ltd.ordinary share
RMB-
Chen Jian 4905900 denominated 4905900
ordinary share
Domestically
KGI ASIA LIMITED 3101695 listed foreign 3101695
share
RMB-
Dai Wenping 2705200 denominated 2705200
ordinary share
RMB-
Yang Xue’e 2111900 denominated 2111900
ordinary share
RMB-
Su Zhenxing 1592093 denominated 1592093
ordinary share
Domestically
Li Suinan 1569100 listed foreign 1569100
share
Domestically
Huang Guoliang 1528891 listed foreign 1528891
share
Domestically
Xue Hong 1398100 listed foreign 1398100
share
RMB-
Tao Xiaofang 1310000 denominated 1310000
ordinary 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.Chen Jian and Dai Wenping respectively held 3295000 and
Top 10 shareholders engaged in securities
2539200 shares in the Company through their credit
margin trading
accounts.(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
5Changchai Company Limited Third Quarterly Report 2022
1. Participation in bidding for 41.5% equity interests in Zhenjiang Siyang Diesel Engine Manufacturing Co.
Ltd. that was put out for sale
The Sixth Extraordinary Meeting of the Board of Directors in 2021 held by the Company on 28 October 2021
deliberated on and approved the Proposal on Participation in Bidding for 41.5% Equity Interests in Zhenjiang
Siyang Diesel Engine Manufacturing Co. Ltd. authorizing the Management of the Company to participate in
bidding for 41.5% equity interest in Zhenjiang Siyang Diesel Engine Manufacturing Co. Ltd. (hereinafter
referred to as "Zhenjiang Siyang") that had been put out for sale by Jiangsu Keda Assets Marketing Co. Ltd.(hereinafter “Keda Assets”). On 12 January 2022 Jiangsu Assets and Equity Exchange Co. Ltd. issued the
Confirmation of Transaction on the Transfer of 41.5% Equity Interests (Corresponding to Capital Contribution
of RMB830000) in Zhenjiang Siyang Diesel Engine Manufacturing Co. Ltd. The Company won the bid for the
41.5% equity interests in Zhenjiang Siyang at a price of RMB33520800.00. On 23 February 2022 the
Company signed the Contract on Transfer of State-owned Property Rights with Keda Assets. On 9 March 2022
Zhenjiang Siyang has completed the relevant registration alteration formalities with the competent industrial
and commercial administration. On 16 May 2022 Zhenjiang Siyang held meetings of shareholders the Board
of Directors and the Supervisory Committee to elect and appoint new members for the Board of Directors the
Supervisory Committee and management. Zhenjiang Siyang has been included in the consolidated financial
statements of the Company.
2. Capital increase to Jiangsu Horizon New Energy Technology Co. Ltd.
On 25 August 2022 the Proposal on an Intended Capital Increase to Jiangsu Horizon New Energy Technology
Co. Ltd. & the Relevant Related-party Transaction was approved at the Fourth Extraordinary Meeting of the
Board of Directors in 2022. As such the Company was agreed to carry out another capital increase of RMB75
million to Jiangsu Horizon New Energy Technology Co. Ltd. by subscribing for RMB18.8442 million of
additional registered capital at RMB3.98/share. And Chairman of the Board Mr. Shi Xinkun was authorized to
sign the relevant capital increase agreement with the relevant party and handle other matters. Upon this capital
increase the Company holds a total interest of 5.36% in Jiangsu Horizon New Energy Technology Co. Ltd.
6Changchai Company Limited Third Quarterly Report 2022
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company Limited
30 September 2022
Unit: RMB
Item 30 September 2022 1 January 2022
Current assets:
Monetary assets 645607594.39 707966678.74
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial assets 276615340.50 404053261.57
Derivative financial assets
Notes receivable 466815202.65 334311236.78
Accounts receivable 992868051.36 375209126.48
Receivables financing 140969635.00 497388826.02
Prepayments 9880041.00 8197418.39
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 20427334.26 19515350.52
Including: Interest receivable
Dividends
receivable
Financial assets purchased under
resale agreements
Inventories 503234907.64 651083758.18
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 31720575.63 44060822.57
Total current assets 3088138682.43 3041786479.25
Non-current assets:
Loans and advances to customers
Debt investments 37898226.39 37898226.39
Other debt investments
Long-term receivables
Long-term equity investments
Investments in other equity 906142866.29 779877646.53
7Changchai Company Limited Third Quarterly Report 2022
instruments
Other non-current financial
373500000.00112500000.00
assets
Investment property 42769898.54 44597255.21
Fixed assets 692380621.81 402915521.65
Construction in progress 78925875.74 270305690.91
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 157395904.88 155154745.91
Development costs
Goodwill
Long-term prepaid expense 168183.91 110345.30
Deferred income tax assets 10705583.29 10693809.23
Other non-current assets 11611024.84 4543240.88
Total non-current assets 2311498185.69 1818596482.01
Total assets 5399636868.12 4860382961.26
Current liabilities:
Short-term borrowings 244395924.99 73971466.65
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 501477497.72 550774400.00
Accounts payable 775107484.19 666186668.82
Advances from customers 361746.26 660965.62
Contract liabilities 30463923.43 26864081.97
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 14097513.02 45385667.48
Taxes and levies payable 6265011.98 5306378.82
Other payables 157030507.24 148361373.29
Including: Interest payable
Dividends payable 3891433.83 3891433.83
Fees and commissions payable
8Changchai Company Limited Third Quarterly Report 2022
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 103352743.92 88938192.79
Total current liabilities 1832552352.75 1606449195.44
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 39615355.40 39615355.40
Deferred income tax liabilities 154831307.46 117344161.11
Other non-current liabilities
Total non-current liabilities 194446662.86 156959516.51
Total liabilities 2026999015.61 1763408711.95
Owners’ equity:
Share capital 705692507.00 705692507.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 640133963.01 640676218.40
Less: Treasury stock
Other comprehensive income 613336936.34 506011499.55
Specific reserve 18812950.04 18812950.04
Surplus reserves 334144488.46 334144488.46
General reserve
Retained earnings 989677876.53 872212354.88
Total equity attributable to owners
3301798721.383077550018.33
of the Company as the parent
Non-controlling interests 70839131.13 19424230.98
Total owners’ equity 3372637852.51 3096974249.31
Total liabilities and owners’ equity 5399636868.12 4860382961.26
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
9Changchai Company Limited Third Quarterly Report 2022
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2022 Q1~Q3 2021
1. Revenues 1723822161.11 1981354126.38
Including: Operating revenue 1723822161.11 1981354126.38
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 1723250063.20 1942537176.98
Including: Cost of sales 1528285603.14 1709842352.28
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 10481397.49 9599626.55
Selling expense 80388110.83 97211507.42
Administrative expense 63510263.02 69073749.70
R&D expense 60330415.35 55986252.72
Finance costs -19745726.63 823688.31
Including: Interest expense 6012305.10 5806935.93
Interest income 8356889.05 7246601.53
Add: Other income 3046711.99 766454.70
Return on investment (“-” for loss) 13836894.98 8663940.64
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) 147105037.74 101609123.57
Credit impairment loss (“-” for loss) -13768089.86 -13804149.22
Asset impairment loss (“-” for loss) 4947828.84 -7356415.78
Asset disposal income (“-” for loss) -361395.36 6459.16
3. Operating profit (“-” for loss) 155379086.24 128702362.47
Add: Non-operating income 3745972.29 1268521.68
Less: Non-operating expense 1092345.39 481411.09
4. Gross profit (“-” for loss) 158032713.14 129489473.06
Less: Income tax expense 21137842.55 23705272.54
10Changchai Company Limited Third Quarterly Report 2022
5. Net profit (“-” for net loss) 136894870.59 105784200.52
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 136894870.59 105784200.52
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 Company
135810351.96105710713.42
as the parent (“-” for net loss)
5.2.1 Net profit attributable to non-controlling interests (“-”
1084518.6373487.10
for net loss)
6. Other comprehensive income net of tax 107325436.79 122935279.81
Attributable to owners of the Company as the parent 107325436.79 122935279.81
6.1 Items that will not be reclassified to profit or loss 107325436.79 122935279.81
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
107325436.79122935279.81
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 244220307.38 228719480.33
7.1 Attributable to owners of the Company as the parent 243135788.75 228645993.23
7.2 Attributable to non-controlling interests 1084518.63 73487.10
8. Earnings per share
8.1 Basic earnings per share 0.1924 0.1734
8.2 Diluted earnings per share 0.1924 0.1734
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
11Changchai Company Limited Third Quarterly Report 2022
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2022 Q1~Q3 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1470088784.471631589730.09
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 23550037.23 33014359.71
Cash generated from other operating activities 17394468.43 10218300.82
Subtotal of cash generated from operating activities 1511033290.13 1674822390.62
Payments for commodities and services 1204438609.81 1610525132.37
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 241596494.16 253758615.93
Taxes and levies paid 47369925.46 31954409.88
Cash used in other operating activities 100179100.12 94769972.55
Subtotal of cash used in operating activities 1593584129.55 1991008130.73
Net cash generated from/used in operating activities -82550839.42 -316185740.11
2. Cash flows from investing activities:
Proceeds from disinvestment 89591553.34 28222100.00
Return on investment 13945782.65 8762954.14
Net proceeds from the disposal of fixed assets
4424.78815419.17
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities 208889.64
12Changchai Company Limited Third Quarterly Report 2022
Subtotal of cash generated from investing activities 103750650.41 37800473.31
Payments for the acquisition of fixed assets
42948956.55120898051.55
intangible assets and other long-lived assets
Payments for investments 111514548.69 344772100.00
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 154463505.24 465670151.55
Net cash generated from/used in investing activities -50712854.83 -427869678.24
3. Cash flows from financing activities:
Capital contributions received 634999996.40
Including: Capital contributions by non-
controlling interests to subsidiaries
Borrowings received 7000000.00
Cash generated from other financing activities 83546936.65 1391000.00
Subtotal of cash generated from financing activities 83546936.65 643390996.40
Repayment of borrowings 9000000.00 17000000.00
Interest and dividends paid 19444136.67 1307343.28
Including: Dividends paid by subsidiaries to non-
controlling interests
Cash used in other financing activities 3102659.31 12694998.37
Subtotal of cash used in financing activities 31546795.98 31002341.65
Net cash generated from/used in financing activities 52000140.67 612388654.75
4. Effect of foreign exchange rates changes on cash and
cash equivalents
5. Net increase in cash and cash equivalents -81263553.58 -131666763.60
Add: Cash and cash equivalents beginning of the
573623529.10629939540.50
period
6. Cash and cash equivalents end of the period 492359975.52 498272776.90
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
(II) 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 2022
13
沪公网安备31011802005267号
