Changchai Company Limited 2025 Annual Report Abstract

Stock code: 000570 200570 Stock name: Changchai A Changchai B Announcement Number: 2026-004

Changchai Company Limited 2025 Annual Report Abstract

I. Important Notes

This annual report abstract is derived from the full text of the annual report. To obtain a comprehensive

understanding of the Company's operating results financial position and future development plans investors

should carefully read the full text of the annual report on the media designated by the China Securities Regulatory

Commission.All directors attended the board meeting to deliberate on this report.Non-standard Audit Opinion

? Applicable ? Not Applicable

Profit Distribution Proposal or Capital Reserve Conversion Proposal Deliberated by the Board for the Reporting

Period

? Applicable ? Not Applicable

Whether to Convert Capital Reserve into Share Capital

? Yes ? No

The profit distribution proposal approved by the Board is as follows:

Base: 705692507 shares

Cash Dividend: RMB 0.22 per 10 shares (tax inclusive)

Bonus Shares: 0 shares (tax inclusive)

Capital Reserve Conversion into Share Capital: Not applicable

Profit Distribution Proposal for Preferred Shares Deliberated and Approved by the Board for the Reporting

Period

? Applicable ? Not Applicable

II. Corporate Information

1. Corporate Information

Stock name Changchai AChangchai B Stock code 000570 200570

Stock exchange for stock

listing Shenzhen Stock Exchange

Contact Information Board Secretary Securities Representative

Name He Jianjiang

Address 123 Huaide Middle RoadChangzhou Jiangsu China

1Changchai Company Limited 2025 Annual Report Abstract

Fax (86) 519-86630954

Tel. (86) 519-68683155

Email address cchjj@changchai.com

2. Principal Activity of the Company in the Reporting Period

(1) Principal Operations of the Company

We mainly specialize in the R&D manufacture and sales of diesel engines under the brand "Changchai" and

gasoline engines under the brand "Robin". Our products are mainly used in agricultural machinery small

engineering machinery generator sets and shipborne machinery and other fields closely related to people's

livelihood.In the Reporting Period there were no major changes in the Company's core business and main products.

(2) Main Products of the Company

Our main products are divided into two categories: diesel engines and gasoline engines. The details are as follows:

Main

produc Graphic display Product description Product Application

ts features fields

Our diesel engine products include

single-cylinder diesel engines and High power low Agricultural

multi-cylinder engines covering oil consumption machinery

Diesel power range from 3kW to 180kW low noise construction

engine and cylinder diameters from 70mm compact machineryto 140mm. Besides sale in domestic structure low generator sets

market our diesel engines are sold emission good shipborne

to Southeast Asia South America reliability machinery

the Middle East and Africa.Our gasoline engines are mainly

general-purpose small gasoline

engines covering the power range Agricultural

Gasolin from 1.5kW to 9.0kW. Besides sale Simple structuregood reliability machinerye in domestic market our gasoline small

engine engines are sold to Southeast Asia easymaintenance constructionthe Middle East Europe and machinery

America Africa Japan and other

countries and regions.

(3) Industry Overview

We are a manufacturer of internal combustion engines and fittings in general equipment manufacturing. According

to the classification of fuel used internal combustion engines are mainly divided into diesel engines and gasoline

engines. Our diesel engines and gasoline engines are mainly used in non-road mobile machinery fields such as

harvesters tractors plant protection machinery small engineering machinery and shipborne machinery.

1) Basic information on the industry

The internal combustion engine is an important support for China's manufacturing industry security energy

security and national defense security and an important basic industry of national economy and national defense

construction. The internal combustion engine is the most power-dense thermally efficient and widely used heat

engine power unit.In order to implement the national overall development strategy of energy conservation emission reduction

transformation and upgrading the internal combustion engine industry and agricultural machinery industry will

strengthen independent innovation and research and development accelerate the construction of a common basic

technology platform optimize the construction of the upstream and downstream industry chain implement

intelligent manufacturing and actively carry out international exchange and cooperation to accelerate the

realization of industrial technology upgrading.

2) Development pattern and trend of the industry

2Changchai Company Limited 2025 Annual Report Abstract

The "15th Five-Year Plan" period marks a crucial stage for China to achieve its carbon peaking goal and the

internal combustion engine (ICE) industry is entering a strategic window for transformation and reshaping. The

"two new" policies of 2026 provide clear guidance for the promotion of green and intelligent products and the

low-carbon upgrading of industries making energy conservation and carbon reduction the core task for high-

quality development in the sector. Driven by both policy guidance and market demand the industry is accelerating

its layout of a diversified fuel power technology system with the application of low-carbon and zero-carbon fuels

becoming an important direction. Hybrid power (including extended range) serves as a key path for the transition

from internal combustion power to new energy continuously playing an irreplaceable role in the commercial

vehicle and non-road sectors. Through the concerted efforts of combustion optimization emission control and

intelligent monitoring ICEs are accelerating their upgrade towards high efficiency intelligence cleanliness and

low carbon. The deep integration of digital technology and manufacturing processes coupled with continuously

enhanced synergy across the industrial chain is injecting new momentum into the industry's leap towards high-

end development. Relying on technological breakthroughs and systematic innovations the ICE industry will

continue to consolidate its foundation as a driving force for national economic and defense security.In recent years the country has introduced a series of policies to support the development of the agricultural

machinery market including policies on agricultural machinery purchase subsidies scrapping and renewal

subsidies and support for the agricultural machinery circulation industry. The No. 1 central document of 2026

focuses on agricultural and rural modernization and comprehensive rural revitalization. With the core objectives

of enhancing comprehensive agricultural production capacity and stabilizing food security it proposes three major

upgrading directions for agricultural machinery: high-end intelligence green and low-carbon and hillside

adaptability. By optimizing subsidies and expanding scenarios it aims to release industrial dividends and promote

the transformation of agricultural machinery equipment into new productive forces.In 2025 influenced by factors such as low grain prices and frequent abnormal weather China's agricultural

machinery market as a whole performed below expectations. The industry underwent accelerated differentiation

amidst adjustments with the trend of structural transformation becoming increasingly evident. In terms of product

structure traditional mainstay products exhibited sluggish performance but there was uneven performance in

different segments. The tractor market saw a year-on-year decline in production yet large tractors achieved

growth and high-end models such as power-shift tractors experienced leapfrog growth breaking the dominant

position of traditional mechanical-shift tractors. The harvesting machinery market declined overall but its

structure continued to be optimized with an increase in the proportion of large-feed models and tracked

harvesters bucked the trend with their export advantages. The rice transplanter market showed differentiation

with high-speed riding models experiencing a decline in production due to subsidy adjustments while hand-

guided models achieved growth due to price advantages and adjusted agronomic needs. Micro-tillers as a

representative category of mechanization in hilly and mountainous areas performed impressively.From the perspective of competition the industry reshuffle is accelerating and market concentration is

continuously increasing. Leading enterprises leveraging their technological channel and brand advantages have

steadily expanded their market share and occupy a dominant position in niche areas. Most small and medium-

sized enterprises operate on a smaller scale and face increased survival pressures. Looking at the trend of

upgrading high-end and intelligent products have become the focus of enterprises' efforts. High-end tractors such

as power shift and infinitely variable speed have entered large-scale applications; the integration of high-precision

automatic drive systems with Beidou is accelerating; the industrialization of new energy agricultural machinery is

accelerating with breakthroughs in hybrid tractors and electric drive seeders. In terms of export performance

agricultural machinery exports have become an important driving force for industry development with a rapid

growth in total volume with countries along the Belt and Road contributing the majority of the share. Looking at

policy orientation 2026 as the first year of the 15th Five-Year Plan will see continued efforts in large-scale

equipment renewal and subsidies for agricultural machinery purchase and application with policies oriented

towards "preferential subsidies for superior machinery" forcing enterprises to transform towards high-tech and

high-value-added fields. With technological development agricultural machinery is shifting towards high-end

3Changchai Company Limited 2025 Annual Report Abstract

intelligent digital and green directions with significant growth potential in areas such as intelligent agricultural

machinery equipment machinery for hilly and mountainous areas and specialty economic crops new energy

agricultural machinery agricultural robots and unmanned systems and agricultural machinery after-market

services. In the process of national strategic deployment and transformation and upgrading the agricultural

machinery market still has vast potential for development.

(4) The Company's Market Position

The Company mainly engages in R&D production and sales of "Changchai" brand diesel engines and "Robin"

brand gasoline engines. Through its development it has successfully developed multiple advanced core

technologies with independent intellectual property rights. For diesel engines according to China Internal

Combustion Engine Industry Association statistics the Company's single-cylinder engine products hold relatively

high market shares ranking among the top nationally for certain power range single-cylinder diesel engines. Over

the years while achieving steady corporate economic development the Company has cultivated and developed

"Changchai"-a famous Chinese brand in the small diesel engine industry with independent IP and

domestic/international recognition.

3. Major Accounting Data and Financial Indicators

(1) Major Accounting Data and Financial Indicators for the Past Three Years

Whether the Company Needs to Retrospectively Adjust or Restate Prior Years' Accounting Data

? Yes ? No

Unit: RMB

Change of

31

31 December 2025 31 December December 31 December2024 2025 over 31 2023

December

2024

Total assets (RMB) 5578281300.02 5381900903.82 3.65% 5159394958.92

Equity attributable to the listed

company’s shareholders (RMB) 3443190677.55 3362683464.32 2.39% 3398946911.23

2025-over-

2025 2024 2024 change 2023

(%)

Operating revenue (RMB) 2476325822.68 2415869028.32 2.50% 2155698787.49

Net profit attributable to the

listed company’s shareholders 50820986.84 18489896.00 174.86% 108495607.05

(RMB)

Net profit attributable to the

listed company’s shareholders

before exceptional gains and 20573578.22 52958683.45 -61.15% -47466184.54

losses (RMB)

Net cash generated from/used in

operating activities (RMB) 289562549.07 -154292968.70 —— 137189827.35

Basic earnings per share

(RMB/share) 0.0720 0.0262 174.81% 0.1537

Diluted earnings per share

(RMB/share) 0.0720 0.0262 174.81% 0.1537

Weighted average return on 1.49% 0.55% 0.94% 3.19%

4Changchai Company Limited 2025 Annual Report Abstract

equity (%)

(2) Key Financial Information by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 897763657.72 663422968.11 501193579.88 413945616.97

Net profit attributable to the listed

company’s shareholders 43720636.95 29702177.74 -28933980.40 6332152.55

Net profit attributable to the listed

company’s shareholders before 40468902.21 15828598.38 -40744294.49 5020372.12

exceptional gains and losses

Net cash generated from/used in

operating activities -14769195.97 -59536914.66 -140609621.01 504478280.71

Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs

materially from what have been disclosed in the Company’s quarterly or interim reports.□ Yes√ No

4. Share Capital and Shareholders' Information

(1) Table of Ordinary Shareholders and Shareholders with Restored Voting Rights of Preferred Shares

and Shareholding Details of the Top 10 Shareholders

Unit: share

Number of Number Number of

ordinary of preferred

Number of shareholders preferred shareholders with

ordinary 45144 at the 45635 sharehol 0 resumed voting 0

shareholders month-end ders with rights at theprior to the resumed month-end prior

disclosure of voting to the disclosure

this Report rights of this Report

Shareholding of the top 10 shareholders (excluding shares lent through refinancing)

Number of Restricted shares held

shares

Name of Nature of Shareholdin Total shares held with

shareholder shareholder g percentage at the period-end restricted Status Shares

trading

conditions

Changzhou State-

Investment Group owned legal 32.26% 227663417

Co. Ltd person

Domestic

Chen Jian natural 0.71% 4988800

person

KGI ASIA Foreign

LIMITED legal person 0.44% 3100195 0 N/A 0

BARCLAYS Foreign

BANK PLC legal person 0.43% 3042917

Bank of China

Limited -

Huashang Other 0.41% 2895200

Zhenxuan Return

Hybrid Securities

5Changchai Company Limited 2025 Annual Report Abstract

Investment Fund

Domestic

Dai Xuerong natural 0.34% 2396600

person

Domestic

Lv Qiang natural 0.34% 2383800

person

Goldman Sachs

International - Foreign

Own Funds legal person

0.32%2257888

China Minsheng

Banking Corp.Ltd. - Jinyuan

Shun'an Yuanqi

Flexible Other 0.29% 2072600

Allocation Hybrid

Securities

Investment Fund

Domestic

Li Suinan natural 0.23% 1602000

person

Explanation of the It is unknown whether there is among the top 10 public shareholders and the

aforementioned shareholder top 10 unrestricted public shareholders any related parties or acting-in-

related-party relationships or concert parties as defined in the Administrative Measures for Information

concerted actions Regarding Shareholding Alteration.Explanation of shareholders

involved in margin trading and Shareholder Chen Jian holds 4988800 shares of the company's stock

securities lending business (if through a credit account.any)

Information on shares lent by shareholders holding more than 5% of the shares top 10 shareholders and top 10

shareholders of unrestricted tradable shares participating in the refinancing business

□ Applicable √ Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed from the

previous period due to refinancing lending/return reasons

□ Applicable √ Not applicable

(2) Table of Total Number of Preferred Share Shareholders and Shareholding Details of the Top 10

Preferred Share Shareholders

□ Applicable √ Not applicable

The Company had no preferred share shareholders during the reporting period.

6Changchai Company Limited 2025 Annual Report Abstract

(3) Disclosure of Ownership and Control Relationships Between the Company and Its Ultimate

Controlling Party in Diagram Form

5. Bond Information Outstanding as of the Date of Annual Report Approval

? Applicable ? Not Applicable

III. Significant Events

1. Expropriation and compensation for some buildings (street-side shops) at the company headquarters

On February 26 2025 the company received the "Announcement on the Publication of the 'Changzhou City

Urban Rail Transit Line 5 Project Xiheng Street Station Project Housing Expropriation Compensation Plan' and

Solicitation of Opinions" issued by the People's Government of Zhonglou District Changzhou City. Due to

public interest requirements the People's Government of Zhonglou District Changzhou City intends to

expropriate part of the houses at No. 123 Huaide Middle Road Changzhou City (i.e. the company's

headquarters street-side shops). On July 21 2025 the company held the fourth extraordinary meeting of the

board of directors and the third extraordinary meeting of the board of supervisors in 2025 and deliberated and

approved the "Proposal on Signing the 'Changzhou City State-owned Land Housing Expropriation

Compensation Agreement' for the headquarters street-side shops". This matter was deliberated and approved by

the second extraordinary shareholders' meeting in 2025 on August 6 2025 agreeing to the company signing a

compensation agreement with the Zhonglou District Housing and Urban-Rural Development Bureau. The total

compensation amount agreed upon in the agreement is 48.7877 million yuan. On August 7 2025 the company

signed the "Changzhou City State-owned Land Housing Expropriation Compensation Agreement" with the

Housing and Urban-Rural Development Bureau of Zhonglou District Changzhou City and received the first

installment of compensation totaling 14.6363 million yuan in September 2025. In November 2025 the company

received the remaining compensation amount of 34.1514 million yuan. As of the end of the reporting period the

company has received the full amount of compensation for the headquarters street-side shops.

2.Expropriation and compensation for the company's foundry building

On March 6 2025 the company received the "Decision on the Expropriation of Houses on State-owned Land

by the People's Government of Xinbei District Changzhou City" (Changxin Zheng [2025] No. 1) issued by the

People's Government of Xinbei District Changzhou City. Due to the public interest in the reconstruction of the

old urban area the People's Government of Xinbei District Changzhou City decided to expropriate the houses

within the scope of the old urban area reconstruction project (Phase I) of the company's foundry and

surrounding plots in Sanjing Street. On May 8 2025 the company held the second extraordinary meeting of the

board of directors and the second extraordinary meeting of the board of supervisors in 2025 and deliberated and

7Changchai Company Limited 2025 Annual Report Abstract

approved the "Proposal on Signing the Foundry's 'Changzhou Xinbei District Non-Residential House

Expropriation Compensation Agreement'". This matter was deliberated and approved by the first extraordinary

shareholders' meeting in 2025 on May 26 2025 agreeing to the company signing compensation agreements

with the Xinbei District Housing and Urban-Rural Development Bureau and Sanjing Street. The total

compensation amount agreed upon in the agreement is 346.8569 million yuan and the expropriation

compensation agreement is yet to be signed.

3.The subsidiary company Horizon Investment participated in the establishment of Changzhou

Changtou Xinhui No.1 Equity Investment Fund (Limited Partnership)

On November 5 2025 the company held the eighth extraordinary meeting of the board of directors in 2025

which deliberated and approved the "Proposal on Jointly Establishing an Equity Investment Fund with

Changzhou Investment Group Co. Ltd." The wholly-owned subsidiary Changzhou Horizon Investment Co.Ltd. served as a limited partner contributing 30 million yuan to jointly establish the Changzhou Changtou

Xinhui No.1 Equity Investment Fund (Limited Partnership) (hereinafter referred to as "Xinhui No.1 Fund") with

the company's controlling shareholder Changzhou Investment Group Co. Ltd. (hereinafter referred to as

"Investment Group") and the controlling shareholder's wholly-owned subsidiary Changzhou Xinhui Private

Equity Fund Management Co. Ltd. (hereinafter referred to as "Xinhui Private Equity"). The fund invests in

advanced manufacturing projects focusing on strategic emerging industries and future industries such as high-

end manufacturing intelligent agricultural machinery new energy and new power. In November 2025 Horizon

Investment Investment Group and Xinhui Private Equity jointly signed the "Partnership Agreement for

Changzhou Changtou Xinhui No.1 Equity Investment Fund (Limited Partnership)". The initial contribution of

3.91 million yuan has been paid in full; Xinhui No.1 Fund has completed the business registration procedures

obtained a business license issued by the Zhonglou District Government Service Management Office of

Changzhou City completed the private equity fund filing procedures with the Asset Management Association

of China and obtained the "Private Equity Fund Filing Certificate".

4.The subsidiary company Horizon Investment participated in the establishment of Yuanzhi Changtou

Xingyu (Changzhou) Equity Investment Partnership (Limited Partnership)

On December 4 2025 the company held the ninth extraordinary meeting of the board of directors in 2025 and

deliberated and approved the "Proposal on the Subsidiary Participating in the Establishment of Equity

Investment Funds and Related Transactions". Changzhou Housen Investment Co. Ltd. a wholly-owned

subsidiary contributed 50 million yuan as a limited partner to establish the Yuanzhi Changtou Xingyu

(Changzhou) Equity Investment Partnership (Limited Partnership) together with Changzhou Investment Group

Co. Ltd. a controlling shareholder Changzhou Xinhui Private Equity Fund Management Co. Ltd. a wholly-

owned subsidiary of the controlling shareholder Shenzhen Yuanzhi Venture Capital Co. Ltd. Changzhou

Xingyu Industrial Investment Co. Ltd. Changzhou Xingyu Investment Management Co. Ltd. Shenzhen

Capital Operation Group Co. Ltd. Shanghai Zhuguang Julian Hard Technology Venture Capital Partnership

(Limited Partnership) and Changzhou Zhonglou Science and Technology Innovation Investment Partnership

(Limited Partnership). The partnership focuses on the upstream and downstream industrial chain of new energy

vehicles and new energy including but not limited to equipment materials and components.

5. Changchai Robin’s Merger with Horizon Agricultural Equipment

On November 22 2024 the Company held the Fifth Interim Board Meeting of 2024 and passed the Proposal on

the Merger between Changzhou Changchai Horizon Agricultural Equipment Co. Ltd. and Changzhou Fuji

Changchai Robin Gasoline Engine Co. Ltd. The Board approved the wholly-owned subsidiary Changzhou Fuji

Changchai Robin Gasoline Engine Co. Ltd. to absorb and merge another wholly-owned subsidiary Changzhou

Changchai Horizon Agricultural Equipment Co. Ltd. inheriting all assets liabilities business operations and

other rights and obligations. Post-merger Changchai Robin continues normal operations while Horizon

Agricultural Equipment’s legal entity status has been deregistered. In February 2025 the Company received the

Registration Notice (No. Deng Zi [2025] 02270081) issued by the Government Services Management Office of

Changzhou National Hi-Tech District (Xinbei District) confirming the completion of Horizon Agricultural

8Changchai Company Limited 2025 Annual Report Abstract

Equipment’s business deregistration procedures.

6.Changniu Company has merged with Changben Company

On June 9 2025 the company held the third extraordinary meeting of the board of directors in 2025 which

deliberated and approved the "Proposal on the Merger of Changzhou Changchai Benniu Diesel Engine Parts

Co. Ltd. and Changzhou Changniu Machinery Co. Ltd.". The board of directors agreed that Changzhou

Changniu Machinery Co. Ltd. (hereinafter referred to as "Changniu Company") would merge with Changzhou

Changchai Benniu Diesel Engine Parts Co. Ltd. (hereinafter referred to as "Changben Company") through an

overall merger incorporating all assets liabilities businesses and all other rights and obligations of Changben

Company and inheriting the original registered capital equity structure and governance structure of Changben

Company. In September 2025 the company received the "Registration Notice" (Deng Zi [2025] No. 09080200)

and "Registration Notice" (Deng Zi [2025] No. 09080101) issued by the Government Service Management

Office of Changzhou High-tech Industrial Development Zone (Xinbei District). Changben Company completed

the industrial and commercial deregistration and Changniu Company completed the industrial and commercial

change registration marking the completion of the merger.

7.Acquisition of 3% equity held by individual shareholders of Zhenjiang Siyang

In August 2025 the company acquired a 3% equity stake held by six individual shareholders of Zhenjiang

Siyang a controlling subsidiary for a price of RMB 3.06 million. As of the end of the reporting period the

company held a total of 52% equity in Zhenjiang Siyang remaining its largest shareholder.

9