Changchai Company Limited First Quarterly Report 2022
Stock Code: 000570 200570 Stock Name: Changchai Changchai-B Announcement No.2022-026
CHANGCHAI COMPANY LIMITED
FIRST 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
Q1 2022 Q1 2021 YoY change (%)
Operating revenue (RMB) 675718729.65 774218489.69 -12.72%
Net profit attributable to the listed company’s
-31087265.8324571254.83——
shareholders (RMB)
Net profit attributable to the listed company’s
-12317891.4523604960.00——
shareholders before exceptional items (RMB)
Net cash generated from/used in operating
-47199474.48-184484392.45——
activities (RMB)
Basic earnings per share (RMB/share) -0.0441 0.0438 ——
Diluted earnings per share (RMB/share) -0.0441 0.0438 ——
Weighted average return on equity (%) -1.02% 1.07% -2.09%
31 March 2022 31 December 2021 Change (%)
Total assets (RMB) 4838318261.38 4860382961.26 -0.45%
Equity attributable to the listed company’s
2968783802.503077550018.33-3.53%
shareholders (RMB)
1Changchai Company Limited First Quarterly Report 2022
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2022 Note
Government grants through profit or loss (exclusive of
government grants continuously given in the Company’s
272800.00
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 held-for-trading
financial assets and liabilities & income from disposal of
held-for-trading financial assets and liabilities and
-26731505.22
available-for-sale financial assets (exclusive of the effective
portion of hedges that arise in the Company’s ordinary course
of business)
Non-operating income and expense other than the above 772250.18
Less: Income tax effects -6917080.66
Total -18769374.38 --
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. Notes receivable increased by RMB90331242.37 or 27.02% as at 31 March 2022 compared to 31 December
2021 primarily because the company held an increase in endorsed transfer and discounted bank acceptance bills
with lower credit rating at the end of the Report Period.
2. Accounts receivable increased by RMB417768603.86 or 111.34% as at 31 March 2022 compared to 31
December 2021 primarily because the Company properly allowed customers’ buying on credit for more markets
in the current quarter and multi-cylinder diesel engine customers are mainly supporting companies of main
engine which are usually given longer payment days.
3. Receivables financing decreased by RMB210923616.92 or 42.41% as at 31 March 2022 compared to 31
December 2021 primarily because the bank acceptance bills with higher credit rating held by the Company
decreased at the end of the Report Period.
4. Prepayments increased by RMB4248777.76 or 51.83% as at 31 March 2022 compared to 31 December 2021
primarily because the subsidiary Changchai Wanzhou Diesel Engine Co. Ltd.’s increase on the supplier's support
by adding more advance purchase funds during the Reporting Period.
5. Other current assets decreased by RMB19864684.19 or 45.08% as at 31 March 2022 compared to 31
December 2021 primarily because excess VAT paid by the Company decreased.
6. Long-term equity investments increased by RMB33520800.00 as at 31 March 2022 compared to 31 December
2021 primarily because the Company won the bid for a 41.5% interest in Zhenjiang Siyang Diesel Engine
Manufacturing Co. Ltd. and pay the equity transfer during the Reporting Period.
7. Other non-current assets increased by RMB6312120.24 or 138.93% as at 31 March 2022 compared to 31
December 2021 primarily driven by the increased prepayments by the wholly-owned Subsidiary Jiangsu
Changchai Machinery Co. Ltd. at the end of the Report Period.
8. Short-term borrowings increased by RMB69775258.31 or 94.33% as at 31 March 2022 compared to 31
2Changchai Company Limited First Quarterly Report 2022
December 2021 primarily driven by the increased bank acceptance notes with lower credit ratings held by the
Company at the end of the Report Period that had been discounted but were undue.
9. Employee benefits payable decreased by RMB28161167.31 or 62.05% as at 31 March 2022 compared to 31
December 2021 primarily because salaries and bonuses accrued last year were largely paid in the Reporting
Period.
10. Taxes and levies payable increased by RMB2187975.36 or 41.23% as at 31 March 2022 compared to 31
December 2021 primarily driven by the increased taxes and levies payable such as VAT.
11. Other current liabilities increased by RMB91049660.40 or 102.37% as at 31 March 2022 compared to 31
December 2021 primarily driven by the increased bank acceptance notes with lower credit ratings held by the
Company at the end of the Report Period that had been endorsed and transferred but were undue.
12. Finance costs decreased by RMB3710731.26 during Q1 2022 compared to Q1 2021 primarily driven by the
increased interest income during the Reporting Period.
13. Return on investment increased by RMB1965788.97 or 1050.72% during Q1 2022 compared to Q1 2021
primarily driven by the increased wealth management income from the Company’s use of idle raised funds and
self-owned funds for cash management.
14.Gain on changes in fair value decreased by RMB30754097.74 during Q1 2022 compared to Q1 2021
primarily driven by the decreased fair value of held-for-trading financial assets such as shares held by
wholly-owned subsidiary Changzhou Horizon Investment Co. Ltd. in Jiangsu Liance Electromechanical
Technology Co. Ltd. Kailong High Technology Co. Ltd. and Guilin Stars Science and Technology Co. Ltd. at
the end of the Reporting Period.
15. Non-operating income increased by RMB281743.12 or 42.93% during Q1 2022 compared to Q1 2021
primarily driven by the receipt of compensation for breach of contract during the Reporting Period.
16. Non-operating expense decreased by RMB433662.47 or 72.34% during Q1 2022 compared to Q1 2021
primarily driven by the year-on-year decreased abandonment loss during the Reporting Period.
17. Net profit attributable to shareholders of the Company as the parent decreased by RMB55658520.66 during
Q1 2022 compared to Q1 2021 primarily because during the Reporting Period affected by the pandemic certain
raw material and component suppliers experienced production halts or restricted logistics causing a shortage and
a rise in the costs of these materials; due to restricted retail channels and weaker market demand the Company
saw a decrease in operating revenue and gross profit margin impacting the current profit; and the drop in the fair
value of the financial assets held by the Company also had a substantial impact on the current profit.
18.Net cash generated from operating activities increased by RMB137284917.97 during Q1 2022 compared to
Q1 2021 primarily driven by the year-on-year decrease in cash paid for purchasing goods during the Reporting
Period.
19. Net cash generated from investing activities increased by RMB33601480.40 during Q1 2022 compared to Q1
2021 primarily driven by the wage investment under construction of the wholly-owned Subsidiary Jiangsu
Changchai Machinery Co. Ltd. decreased significantly year-on-year during the Reporting Period.
20. Net cash generated from financing activities increased by RMB26761473.99 during Q1 2022 compared to
Q1 2021 primarily driven by the discounted bank acceptance notes with lower credit ratings during the Reporting
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 preference
shareholders with
Number of ordinary shareholders 53650 0
resumed voting rights
(if any)
Top 10 shareholders
Name of Nature of Shareho Total shares Restrict Shares in pledge marked or
shareholder shareholder lding held ed frozen
3Changchai Company Limited First Quarterly Report 2022
percenta shares
Status Shares
ge held
Changzhou
State-owned 56818
Investment Group 32.26% 227663417
corporation 181
Co. Ltd.Nuode Fund-
Huazhang Tiandi
Media Investment
Co. Ltd.-Nuode
Other 1.49% 10490336
Fund Pujiang
No.64 Single
Asset
Management Plan
China National
Gold Group Asset State-owned
0.92%6520000
Management Co. corporation
Ltd.Domestic
Chen Jian 0.64% 4506000
individual
Changzhou
Transportation
Construction State-owned
0.47%3345454
Investment corporation
Development Co.Ltd.KGI ASIA Foreign
0.44%3101695
LIMITED corporation
Domestic
Yao Jianquan 0.24% 1699954
individual
Domestic
Li Suinan 0.22% 1548100
individual
Domestic
Huang Guoliang 0.22% 1528891
individual
Domestic
Chen Xiaojing 0.20% 1408300
individual
Top 10 unrestricted shareholders
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
Changzhou Investment Group Co. RMB-denominate
170845236170845236
Ltd. d ordinary share
Nuode Fund- Huazhang Tiandi
Media Investment Co. Ltd.-Nuode RMB-denominate
1049033610490336
Fund Pujiang No.64 Single Asset d ordinary share
Management Plan
China National Gold Group Asset RMB-denominate
65200006520000
Management Co. Ltd. d ordinary share
RMB-denominate
Chen Jian 4506000 4506000
d ordinary share
Changzhou Transportation RMB-denominate
33454543345454
Construction Investment d ordinary share
4Changchai Company Limited First Quarterly Report 2022
Development Co. Ltd.Domestically
KGI ASIA LIMITED 3101695 listed foreign 3101695
share
RMB-denominate
Yao Jianquan 1699954 1699954
d ordinary share
Domestically
Li Suinan 1548100 listed foreign 1548100
share
Domestically
Huang Guoliang 1528891 listed foreign 1528891
share
RMB-denominate
Chen Xiaojing 1408300 1408300
d ordinary share
It is unknown whether there is among the top 10 public shareholders and
Related or acting-in-concert parties the top 10 unrestricted public shareholders any related parties or
among the shareholders above acting-in-concert parties as defined in the Administrative Measures for
Information Regarding Shareholding Alteration.Shareholders Chen Jian and Chen Xiaojing respectively held 2972000
Top 10 shareholders engaged in
shares and 1176000 shares in the Company through their credit
securities margin trading (if any)
accounts.(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
1. Participating in the Public Listed Transfer of 41.5% Equity Interests in Zhenjiang Siyang Diesel Engine
Manufacturing Co. Ltd.th
The 6 Interim Meeting of the Board of Directors in 2021 held by the Company on 28 October 2021 deliberated
on and approved the Proposal on Participating in the Public Listed Transfer of 41.5% Equity Interests in
Zhenjiang Siyang Diesel Engine Manufacturing Co. Ltd. authorizing the Management of the Company to
participate in the bidding of the public listed transfer by Jiangsu University of Science and Technology Assets
Management Co. Ltd. of its 41.5% equity interest in Zhenjiang Siyang Diesel Engine Manufacturing Co. Ltd.On 12 January 2022 the Company received the Confirmation of Transaction on the Transfer of 41.5% Equity
Interest (Corresponding to Capital Contribution of RMB830000) in Zhenjiang Siyang Diesel Engine
Manufacturing Co. Ltd. and won the 41.5% equity interest in Zhenjiang Siyang Diesel Engine Manufacturing Co.Ltd. at a price of RMB33520800.00. On 23 February 2022 the Company signed the Contract on Transfer of
State-owned Property Rights with Jiangsu University of Science and Technology Assets Management Co. Ltd. On
9 March 2022 Zhenjiang Siyang Diesel Engine Manufacturing Co. Ltd. has completed the business change
registration.IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company Limited
5Changchai Company Limited First Quarterly Report 2022
31 March 2022
Unit: RMB
Item 31 March 2022 31 December 2021
Current assets:
Monetary assets 610076929.08 707966678.74
Settlement reserve
Loans to other banks and financial institutions
Held-for-trading financial assets 367368261.16 404053261.57
Derivative financial assets
Notes receivable 424642479.15 334311236.78
Accounts receivable 792977730.34 375209126.48
Receivables financing 286465209.10 497388826.02
Prepayments 12446196.15 8197418.39
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 31094276.52 19515350.52
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 538250890.61 651083758.18
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 24196138.38 44060822.57
Total current assets 3087518110.49 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 33520800.00
Investments in other equity instruments 688490646.53 779877646.53
Other non-current financial assets 112500000.00 112500000.00
Investment property 43988136.32 44597255.21
Fixed assets 387813926.53 402915521.65
Construction in progress 271494693.60 270305690.91
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 153614203.12 155154745.91
Development costs
6Changchai Company Limited First Quarterly Report 2022
Goodwill
Long-term prepaid expense 129658.83 110345.30
Deferred income tax assets 10494498.45 10693809.23
Other non-current assets 10855361.12 4543240.88
Total non-current assets 1750800150.89 1818596482.01
Total assets 4838318261.38 4860382961.26
Current liabilities:
Short-term borrowings 143746724.96 73971466.65
Borrowings from the central bank
Loans from other banks and financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 572056000.00 550774400.00
Accounts payable 632769855.67 666186668.82
Advances from customers 660965.62 660965.62
Contract liabilities 27523225.52 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 17224500.17 45385667.48
Taxes and levies payable 7494354.18 5306378.82
Other payables 133013147.79 148361373.29
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 179987853.19 88938192.79
Total current liabilities 1714476627.10 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
7Changchai Company Limited First Quarterly Report 2022
Deferred income 39615355.40 39615355.40
Deferred income tax liabilities 96049875.29 117344161.11
Other non-current liabilities
Total non-current liabilities 135665230.69 156959516.51
Total liabilities 1850141857.79 1763408711.95
Owners’ equity:
Share capital 705692507.00 705692507.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 640676218.40 640676218.40
Less: Treasury stock
Other comprehensive income 428332549.55 506011499.55
Specific reserve 18812950.04 18812950.04
Surplus reserves 334144488.46 334144488.46
General reserve
Retained earnings 841125089.05 872212354.88
Total equity attributable to owners of the Company as the
2968783802.503077550018.33
parent
Non-controlling interests 19392601.09 19424230.98
Total owners’ equity 2988176403.59 3096974249.31
Total liabilities and owners’ equity 4838318261.38 4860382961.26
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
8Changchai Company Limited First Quarterly Report 2022
2. Consolidated Income Statement
Unit: RMB
Item Q1 2022 Q1 2021
1. Revenues 675718729.65 774218489.69
Including: Operating revenue 675718729.65 774218489.69
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 677470421.86 737847784.06
Including: Cost of sales 610619843.16 658879419.02
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 2683173.54 3065396.25
Selling expense 29569565.13 34871649.31
Administrative expense 19674958.93 22926455.83
R&D expense 19647058.28 19118309.57
Finance costs -4724177.18 -1013445.92
Including: Interest expense 2736515.83 778030.13
Interest income 7915467.81 1419334.80
Add: Other income 272800.00 299348.30
Return on investment (“-” for loss) 2152879.03 187090.06
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) -30090071.74 664026.00
Credit impairment loss (“-” for loss) -9216954.12 -8105470.30
Asset impairment loss (“-” for loss)
Asset disposal income (“-” for loss) 6800.10
3. Operating profit (“-” for loss) -38633039.04 29422499.79
Add: Non-operating income 938024.81 656281.69
Less: Non-operating expense 165774.63 599437.10
4. Gross profit (“-” for loss) -37860788.86 29479344.38
Less: Income tax expense -6741893.14 4818244.01
5. Net profit (“-” for net loss) -31118895.72 24661100.37
9Changchai Company Limited First Quarterly Report 2022
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) -31118895.72 24661100.37
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
-31087265.8324571254.83
parent
5.2.1 Net profit attributable to non-controlling interests -31629.89 89845.54
6. Other comprehensive income net of tax -77678950.00 128174900.00
Attributable to owners of the Company as the parent -77678950.00 128174900.00
6.1 Items that will not be reclassified to profit or loss -77678950.00 128174900.00
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
-77678950.00128174900.00
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 -108797845.72 152836000.37
Attributable to owners of the Company as the parent -108766215.83 152746154.83
Attributable to non-controlling interests -31629.89 89845.54
8. Earnings per share
8.1 Basic earnings per share -0.0441 0.0438
8.2 Diluted earnings per share -0.0441 0.0438
Legal representative: Shi Xinkun General Manager: Zhang Xin
Head of the accounting department: Jiang He
10Changchai Company Limited First Quarterly Report 2022
3. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2022 Q1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
481987177.76489688618.36
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 14647419.98 10464646.99
Cash generated from other operating activities 6951907.88 2794943.41
Subtotal of cash generated from operating activities 503586505.62 502948208.76
Payments for commodities and services 415423222.76 549122439.03
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 97929246.11 103795716.50
Taxes and levies paid 6496378.28 12047444.92
Cash used in other operating activities 30937132.95 22467000.76
Subtotal of cash used in operating activities 550785980.10 687432601.21
Net cash generated from/used in operating activities -47199474.48 -184484392.45
2. Cash flows from investing activities:
Proceeds from disinvestment 26278398.53 7300000.00
Return on investment 4673141.68 107580.06
Net proceeds from the disposal of fixed assets
43495.14
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
other business units
11Changchai Company Limited First Quarterly Report 2022
Cash generated from other investing activities
Subtotal of cash generated from investing activities 30951540.21 7451075.20
Payments for the acquisition of fixed assets intangible
33047751.3164189330.18
assets and other long-lived assets
Payments for investments 53384875.99 33550000.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 1205687.49
Subtotal of cash used in investing activities 87638314.79 97739330.18
Net cash generated from/used in investing activities -56686774.58 -90288254.98
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-controlling
interests to subsidiaries
Borrowings received 7000000.00 7000000.00
Cash generated from other financing activities 27990520.85 1391000.00
Subtotal of cash generated from financing activities 34990520.85 8391000.00
Repayment of borrowings 7000000.00 7000000.00
Interest and dividends paid 127375.00 289328.14
Including: Dividends paid by subsidiaries to
non-controlling interests
Cash used in other financing activities
Subtotal of cash used in financing activities 7127375.00 7289328.14
Net cash generated from/used in financing activities 27863145.85 1101671.86
4. Effect of foreign exchange rates changes on cash and
cash equivalents
5. Net increase in cash and cash equivalents -76023103.21 -273670975.57
Add: Cash and cash equivalents beginning of the period 566191095.14 629939540.50
6. Cash and cash equivalents end of the period 490167991.93 356268564.93
(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
30 April 2022
12
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