Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2022-059
CHANGCHAI COMPANY, LIMITEDTHIRD QUARTERLY REPORT 2022Changchai Company, Limited (hereinafter referred to as the “Company”) and all themembers of the Company’s Board of Directors hereby guarantee that the contents of thisReport are true, accurate and complete and free of any misrepresentations, misleadingstatements or material omissions.Important Notes:
1. The Board of Directors, the Supervisory Committee as well as the directors, supervisors and seniormanagement of the Company hereby guarantee that the contents of this Report are true, accurate and completeand free of any misrepresentations, misleading statements or material omissions, and collectively andindividually accept legal responsibility for such contents.
2. The Company’s legal representative, General Manager, and head of the financial department (equivalent tofinancial manager) hereby guarantee that the financial statements carried in this Report are true, accurate andcomplete.
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 IndicatorsIndicate 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 (RMB) | 545,599,669.07 | 12.68% | 1,723,822,161.11 | -13.00% |
| Net profit attributable to the listed company’s shareholders (RMB) | 150,405,621.57 | —— | 135,810,351.96 | 28.47% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | -5,566,500.16 | —— | -11,375,860.23 | —— |
| Net cash generated from/used in operating activities (RMB) | —— | —— | -82,550,839.42 | —— |
| Basic earnings per share (RMB/share) | 0.2131 | —— | 0.1924 | 10.96% |
| Diluted earnings per share (RMB/share) | 0.2131 | —— | 0.1924 | 10.96% |
| Weighted average return | 4.75% | 5.50% | 4.21% | -0.33% |
| on equity (%) | |||
| 30 September 2022 | 31 December 2021 | Change (%) | |
| Total assets (RMB) | 5,399,636,868.12 | 4,860,382,961.26 | 11.09% |
| Equity attributable to the listed company’s shareholders (RMB) | 3,301,798,721.38 | 3,077,550,018.33 | 7.29% |
(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 (inclusive of impairment allowance write-offs) | 0.00 | -361,395.36 | |
| Government grants through profit or loss (exclusive of government grants continuously given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s policies and standards) | 1,443,881.22 | 3,046,711.99 | |
| 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 available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 179,686,038.72 | 159,941,932.72 | Increased fair value of the equity interests held directly by the Company in Jiangsu Horizon New Energy Technology Co., Ltd. |
| Non-operating income and expense other than the above | 702,366.96 | 2,660,006.90 | |
| Less: Income tax effects | 25,851,232.01 | 18,094,554.73 | |
| Non-controlling interests effects (net of tax) | 8,933.16 | 6,489.33 | |
| Total | 155,972,121.73 | 147,186,212.19 | -- |
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 theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—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
| Item | 30 September 2022 (RMB) | 1 January 2022 (RMB) | Change (%) | Explanation of why |
| Held-for-trading financial assets | 276,615,340.50 | 404,053,261.57 | -31.54% | Decreased idle funds out of the amount raised in a private placement that were used |
| for investment in wealth management instruments | ||||
| Notes receivable | 466,815,202.65 | 334,311,236.78 | 39.63% | Increased bank acceptance notes with low credit ratings that were endorsed and transferred or undue but discounted |
| Accounts receivable | 992,868,051.36 | 375,209,126.48 | 164.62% | The Company properly allowed customers’ buying on credit for more markets and multi-cylinder diesel engine customers are mainly supporting companies of main engine, which are usually given longer payment days. |
| Receivables financing | 140,969,635.00 | 497,388,826.02 | -71.66% | Decreased bank acceptance notes with high credit ratings |
| Other non-current financial assets | 373,500,000.00 | 112,500,000.00 | 232.00% | Increased gains on changes in the fair value of the equity interests held directly by the Company in Jiangsu Horizon New Energy Technology Co., Ltd. |
| Fixed assets | 692,380,621.81 | 402,915,521.65 | 71.84% | Transfer to fixed assets of wholly-owned subsidiary Jiangsu Changchai Machinery Co., Ltd.’s construction in progress |
Construction inprogress
| Construction in progress | 78,925,875.74 | 270,305,690.91 | -70.80% | Transfer to fixed assets of wholly-owned subsidiary Jiangsu Changchai Machinery Co., Ltd.’s construction in progress |
| Other non-current assets | 11,611,024.84 | 4,543,240.88 | 155.57% | Increased prepayments of wholly-owned subsidiary Jiangsu Changchai Machinery Co., Ltd. for construction and engineering services |
| Short-term borrowings | 244,395,924.99 | 73,971,466.65 | 230.39% | Increased bank acceptance notes with low credit ratings that were undue but discounted |
| Employee benefits payable | 14,097,513.02 | 45,385,667.48 | -68.94% | Salaries and bonuses accrued last year were paid in the Reporting Period |
| Deferred income tax liabilities | 154,831,307.46 | 117,344,161.11 | 31.95% | Increased fair value of the equity interests held directly by the Company in Jiangsu Horizon New Energy Technology Co., Ltd. |
| Non-controlling interests | 70,839,131.13 | 19,424,230.98 | 264.69% | Acquisition of a 41.5% interest in Zhenjiang Siyang Diesel Engine Manufacturing Co., Ltd. |
2. Consolidated Income Statement Items for Q1~Q3
| Item | Q1~Q3 2022 (RMB) | Q1~Q3 2021 (RMB) | Change (%) | Explanation of why |
| Finance costs | -19,745,726.63 | 823,688.31 | —— | Increased exchange income and interest income. |
| Other income | 3,046,711.99 | 766,454.70 | 297.51% | Increased government grants. |
| Return on investment | 13,836,894.98 | 8,663,940.64 | 59.71% | Increased gains on cash management with idle raised funds and own funds,and the Company received dividends from Bank of Jiangsu Co., Ltd. |
| Gain on changes in fair value | 147,105,037.74 | 101,609,123.57 | 44.78% | Increased fair value of the equity interests held directly by the Company in Jiangsu Horizon New Energy Technology Co., Ltd. |
| Asset impairment loss | 4,947,828.84 | -7,356,415.78 | —— | During the reporting period, the Company withdrew the corresponding provision for clearing obsolete materials. |
| Non-operating | 3,745,972.29 | 1,268,521.68 | 195.30% | Goodwill in relation to the 41.5% interest in |
| income | Zhenjiang Siyang Diesel Engine Manufacturing Co., Ltd. acquired by the Company. | |||
| Net profit attributable to non-controlling interests | 1,084,518.63 | 73,487.10 | 1375.79% | Acquisition of a 41.5% interest in Zhenjiang Siyang Diesel Engine Manufacturing Co., Ltd. |
3. Consolidated Cash Flow Statement Items for Q1~Q3
| Item | Q1~Q3 2022 (RMB) | Q1~Q3 2021 (RMB) | Change (%) | Explanation of why |
| Net cash generated from/used in operating activities | -82,550,839.42 | -316,185,740.11 | —— | Due to the impact of production and sales during the reporting period, the cash expenditure for production, operation and procurement decreased, and the fund collection was intensified. |
| Net cash generated from/used in investing activities | -50,712,854.83 | -427,869,678.24 | —— | This is mainly because Jiangsu Changchai Machinery Co., Ltd. invested more in the construction in the previous period, but less in this period. |
| Net cash generated from/used in financing activities | 52,000,140.67 | 612,388,654.75 | -91.51% | Arrival of funds raised in a private placement in the same period of last year,and there is no such event in the current period. |
II Shareholder Information(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as wellas Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 53,393 | Number of preference shareholders with resumed voting rights (if any) | 0 | |||
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge, marked or frozen | |
| Status | Shares | |||||
| Changzhou Investment Group Co., Ltd. | State-owned corporation | 32.26% | 227,663,417 | 56,818,181 | ||
| Chen Jian | Domestic individual | 0.70% | 4,905,900 | 0 | ||
| KGI ASIA LIMITED | Foreign corporation | 0.44% | 3,101,695 | 0 | ||
| Dai Wenping | Domestic individual | 0.38% | 2,705,200 | 0 | ||
| Yang Xue’e | Domestic individual | 0.30% | 2,111,900 | 0 | ||
| Su Zhenxing | Domestic individual | 0.23% | 1,592,093 | 0 | ||
| Li Suinan | Domestic individual | 0.22% | 1,569,100 | 0 | ||
| Huang Guoliang | Domestic individual | 0.22% | 1,528,891 | 0 | ||
| Xue Hong | Domestic individual | 0.20% | 1,398,100 | 0 | ||
| Tao Xiaofang | Domestic individual | 0.19% | 1,310,000 | 0 | ||
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted ordinary shares held | Shares by class | ||||
| Class | Shares | |||||
| Changzhou Investment Group Co., Ltd. | 170,845,236 | RMB-denominated ordinary share | 170,845,236 | |||
| Chen Jian | 4,905,900 | RMB-denominated ordinary share | 4,905,900 | |||
| KGI ASIA LIMITED | 3,101,695 | Domestically listed foreign share | 3,101,695 | |||
| Dai Wenping | 2,705,200 | RMB-denominated ordinary share | 2,705,200 | |||
| Yang Xue’e | 2,111,900 | RMB-denominated ordinary share | 2,111,900 | |||
| Su Zhenxing | 1,592,093 | RMB-denominated ordinary share | 1,592,093 | |||
| Li Suinan | 1,569,100 | Domestically listed foreign share | 1,569,100 | |||
| Huang Guoliang | 1,528,891 | Domestically listed foreign share | 1,528,891 | |||
| Xue Hong | 1,398,100 | Domestically listed foreign share | 1,398,100 | |||
| Tao Xiaofang | 1,310,000 | RMB-denominated ordinary share | 1,310,000 | |||
| Related or acting-in-concert parties among the shareholders above | It is unknown whether there is among the top 10 public shareholders and the top 10 unrestricted public shareholders any related parties or acting-in-concert parties as defined in the Administrative Measures for Information Regarding Shareholding Alteration. | |||||
| Top 10 shareholders engaged in securities margin trading | Chen Jian and Dai Wenping respectively held 3,295,000 and 2,539,200 shares in the Company through their credit accounts. | |||||
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
1. Participation in bidding for 41.5% equity interests in Zhenjiang Siyang Diesel Engine Manufacturing Co.,Ltd. that was put out for saleThe Sixth Extraordinary Meeting of the Board of Directors in 2021 held by the Company on 28 October 2021deliberated on and approved the Proposal on Participation in Bidding for 41.5% Equity Interests in ZhenjiangSiyang Diesel Engine Manufacturing Co., Ltd., authorizing the Management of the Company to participate inbidding for 41.5% equity interest in Zhenjiang Siyang Diesel Engine Manufacturing Co., Ltd. (hereinafterreferred 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 theConfirmation of Transaction on the Transfer of 41.5% Equity Interests (Corresponding to Capital Contributionof RMB830,000) 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 RMB33,520,800.00. On 23 February 2022, theCompany 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 industrialand commercial administration. On 16 May 2022, Zhenjiang Siyang held meetings of shareholders, the Boardof Directors and the Supervisory Committee to elect and appoint new members for the Board of Directors, theSupervisory Committee and management. Zhenjiang Siyang has been included in the consolidated financialstatements 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 TechnologyCo., Ltd. & the Relevant Related-party Transaction was approved at the Fourth Extraordinary Meeting of theBoard of Directors in 2022. As such, the Company was agreed to carry out another capital increase of RMB75million to Jiangsu Horizon New Energy Technology Co., Ltd. by subscribing for RMB18.8442 million ofadditional registered capital at RMB3.98/share. And Chairman of the Board Mr. Shi Xinkun was authorized tosign the relevant capital increase agreement with the relevant party and handle other matters. Upon this capitalincrease, the Company holds a total interest of 5.36% in Jiangsu Horizon New Energy Technology Co., Ltd.
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 | 645,607,594.39 | 707,966,678.74 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | 276,615,340.50 | 404,053,261.57 |
| Derivative financial assets | ||
| Notes receivable | 466,815,202.65 | 334,311,236.78 |
| Accounts receivable | 992,868,051.36 | 375,209,126.48 |
| Receivables financing | 140,969,635.00 | 497,388,826.02 |
| Prepayments | 9,880,041.00 | 8,197,418.39 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 20,427,334.26 | 19,515,350.52 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 503,234,907.64 | 651,083,758.18 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 31,720,575.63 | 44,060,822.57 |
| Total current assets | 3,088,138,682.43 | 3,041,786,479.25 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments | 37,898,226.39 | 37,898,226.39 |
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | ||
| Investments in other equity | 906,142,866.29 | 779,877,646.53 |
| instruments | ||
| Other non-current financial assets | 373,500,000.00 | 112,500,000.00 |
| Investment property | 42,769,898.54 | 44,597,255.21 |
| Fixed assets | 692,380,621.81 | 402,915,521.65 |
| Construction in progress | 78,925,875.74 | 270,305,690.91 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 157,395,904.88 | 155,154,745.91 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 168,183.91 | 110,345.30 |
| Deferred income tax assets | 10,705,583.29 | 10,693,809.23 |
| Other non-current assets | 11,611,024.84 | 4,543,240.88 |
| Total non-current assets | 2,311,498,185.69 | 1,818,596,482.01 |
| Total assets | 5,399,636,868.12 | 4,860,382,961.26 |
| Current liabilities: | ||
| Short-term borrowings | 244,395,924.99 | 73,971,466.65 |
| Borrowings from the central bank | ||
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 501,477,497.72 | 550,774,400.00 |
| Accounts payable | 775,107,484.19 | 666,186,668.82 |
| Advances from customers | 361,746.26 | 660,965.62 |
| Contract liabilities | 30,463,923.43 | 26,864,081.97 |
| 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 | 14,097,513.02 | 45,385,667.48 |
| Taxes and levies payable | 6,265,011.98 | 5,306,378.82 |
| Other payables | 157,030,507.24 | 148,361,373.29 |
| Including: Interest payable | ||
| Dividends payable | 3,891,433.83 | 3,891,433.83 |
| Fees and commissions payable |
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | 103,352,743.92 | 88,938,192.79 |
| Total current liabilities | 1,832,552,352.75 | 1,606,449,195.44 |
| 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 | 39,615,355.40 | 39,615,355.40 |
| Deferred income tax liabilities | 154,831,307.46 | 117,344,161.11 |
| Other non-current liabilities | ||
| Total non-current liabilities | 194,446,662.86 | 156,959,516.51 |
| Total liabilities | 2,026,999,015.61 | 1,763,408,711.95 |
| Owners’ equity: | ||
| Share capital | 705,692,507.00 | 705,692,507.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 640,133,963.01 | 640,676,218.40 |
| Less: Treasury stock | ||
| Other comprehensive income | 613,336,936.34 | 506,011,499.55 |
| Specific reserve | 18,812,950.04 | 18,812,950.04 |
| Surplus reserves | 334,144,488.46 | 334,144,488.46 |
| General reserve | ||
| Retained earnings | 989,677,876.53 | 872,212,354.88 |
| Total equity attributable to owners of the Company as the parent | 3,301,798,721.38 | 3,077,550,018.33 |
| Non-controlling interests | 70,839,131.13 | 19,424,230.98 |
| Total owners’ equity | 3,372,637,852.51 | 3,096,974,249.31 |
| Total liabilities and owners’ equity | 5,399,636,868.12 | 4,860,382,961.26 |
Legal representative: Shi Xinkun General Manager: Zhang XinHead of the accounting department: Jiang He
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2022 | Q1~Q3 2021 |
| 1. Revenues | 1,723,822,161.11 | 1,981,354,126.38 |
| Including: Operating revenue | 1,723,822,161.11 | 1,981,354,126.38 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 1,723,250,063.20 | 1,942,537,176.98 |
| Including: Cost of sales | 1,528,285,603.14 | 1,709,842,352.28 |
| 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 | 10,481,397.49 | 9,599,626.55 |
| Selling expense | 80,388,110.83 | 97,211,507.42 |
| Administrative expense | 63,510,263.02 | 69,073,749.70 |
| R&D expense | 60,330,415.35 | 55,986,252.72 |
| Finance costs | -19,745,726.63 | 823,688.31 |
| Including: Interest expense | 6,012,305.10 | 5,806,935.93 |
| Interest income | 8,356,889.05 | 7,246,601.53 |
| Add: Other income | 3,046,711.99 | 766,454.70 |
| Return on investment (“-” for loss) | 13,836,894.98 | 8,663,940.64 |
| 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) | 147,105,037.74 | 101,609,123.57 |
| Credit impairment loss (“-” for loss) | -13,768,089.86 | -13,804,149.22 |
| Asset impairment loss (“-” for loss) | 4,947,828.84 | -7,356,415.78 |
| Asset disposal income (“-” for loss) | -361,395.36 | 6,459.16 |
| 3. Operating profit (“-” for loss) | 155,379,086.24 | 128,702,362.47 |
| Add: Non-operating income | 3,745,972.29 | 1,268,521.68 |
| Less: Non-operating expense | 1,092,345.39 | 481,411.09 |
| 4. Gross profit (“-” for loss) | 158,032,713.14 | 129,489,473.06 |
| Less: Income tax expense | 21,137,842.55 | 23,705,272.54 |
| 5. Net profit (“-” for net loss) | 136,894,870.59 | 105,784,200.52 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 136,894,870.59 | 105,784,200.52 |
| 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 as the parent (“-” for net loss) | 135,810,351.96 | 105,710,713.42 |
| 5.2.1 Net profit attributable to non-controlling interests (“-” for net loss) | 1,084,518.63 | 73,487.10 |
| 6. Other comprehensive income, net of tax | 107,325,436.79 | 122,935,279.81 |
| Attributable to owners of the Company as the parent | 107,325,436.79 | 122,935,279.81 |
| 6.1 Items that will not be reclassified to profit or loss | 107,325,436.79 | 122,935,279.81 |
| 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 equity instruments | 107,325,436.79 | 122,935,279.81 |
| 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 | 244,220,307.38 | 228,719,480.33 |
| 7.1 Attributable to owners of the Company as the parent | 243,135,788.75 | 228,645,993.23 |
| 7.2 Attributable to non-controlling interests | 1,084,518.63 | 73,487.10 |
| 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 XinHead of the accounting department: Jiang He
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 services | 1,470,088,784.47 | 1,631,589,730.09 |
| 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 | 23,550,037.23 | 33,014,359.71 |
| Cash generated from other operating activities | 17,394,468.43 | 10,218,300.82 |
| Subtotal of cash generated from operating activities | 1,511,033,290.13 | 1,674,822,390.62 |
| Payments for commodities and services | 1,204,438,609.81 | 1,610,525,132.37 |
| 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 | 241,596,494.16 | 253,758,615.93 |
| Taxes and levies paid | 47,369,925.46 | 31,954,409.88 |
| Cash used in other operating activities | 100,179,100.12 | 94,769,972.55 |
| Subtotal of cash used in operating activities | 1,593,584,129.55 | 1,991,008,130.73 |
| Net cash generated from/used in operating activities | -82,550,839.42 | -316,185,740.11 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 89,591,553.34 | 28,222,100.00 |
| Return on investment | 13,945,782.65 | 8,762,954.14 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 4,424.78 | 815,419.17 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | 208,889.64 |
| Subtotal of cash generated from investing activities | 103,750,650.41 | 37,800,473.31 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 42,948,956.55 | 120,898,051.55 |
| Payments for investments | 111,514,548.69 | 344,772,100.00 |
| 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 | 154,463,505.24 | 465,670,151.55 |
| Net cash generated from/used in investing activities | -50,712,854.83 | -427,869,678.24 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 634,999,996.40 | |
| Including: Capital contributions by non-controlling interests to subsidiaries | ||
| Borrowings received | 7,000,000.00 | |
| Cash generated from other financing activities | 83,546,936.65 | 1,391,000.00 |
| Subtotal of cash generated from financing activities | 83,546,936.65 | 643,390,996.40 |
| Repayment of borrowings | 9,000,000.00 | 17,000,000.00 |
| Interest and dividends paid | 19,444,136.67 | 1,307,343.28 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | 3,102,659.31 | 12,694,998.37 |
| Subtotal of cash used in financing activities | 31,546,795.98 | 31,002,341.65 |
| Net cash generated from/used in financing activities | 52,000,140.67 | 612,388,654.75 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | ||
| 5. Net increase in cash and cash equivalents | -81,263,553.58 | -131,666,763.60 |
| Add: Cash and cash equivalents, beginning of the period | 573,623,529.10 | 629,939,540.50 |
| 6. Cash and cash equivalents, end of the period | 492,359,975.52 | 498,272,776.90 |
Legal representative: Shi Xinkun General Manager: Zhang XinHead of the accounting department: Jiang He(II) Independent Auditor’s ReportIndicate 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 DirectorsChangchai Company, Limited
29 October 2022