CHANGCHAICOMPANY,LIMITED
ANNUALREPORT2023
April2024
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.XieGuozhong,theCompany’slegalrepresentativeandGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks.TheCompanyhasdescribedindetailtherisksitmightfacein“XIProspects”in“PartIIIManagementDiscussionandAnalysis”herein.TheBoardhasapprovedafinaldividendplanasfollows:basedonthe705,692,507shares,acashdividendofRMB0.47(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 12
PartIVCorporateGovernance ...... 43
PartVEnvironmentalandSocialResponsibility ...... 65
PartVISignificantEvents ...... 66
PartVIIShareChangesandShareholderInformation ...... 74
PartVIIIPreferredShares ...... 82
PartIXBonds ...... 83
PartXFinancialStatements ...... 84
DocumentsAvailableforReference
1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment.
2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm.
3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod.
4.TheAnnualReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompany.ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Definitions
| Term | Definition |
| “Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HorizonInvestment | ChangzhouHorizonInvestmentCo.,Ltd. |
| HorizonAgriculturalEquipment | ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| ZhenjiangSiyang | ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2023to31December2023 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr. | 苏常柴 | ||
| CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
| Abbr.(ifany) | CHANGCAHICO.,LTD. | ||
| Legalrepresentative | XieGuozhong | ||
| Registeredaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
| Registeredaddressespreviouslyused | N/A | ||
| Zipcode | 213002 | ||
| Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
| Zipcode | 213002 | ||
| Companywebsite | http://www.changchai.com.cn | ||
| Emailaddress | cctqm@public.cz.js.cn | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | HeJianjiang | |
| Address | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
| Tel. | （86）519-68683155 | |
| Fax | （86）519-86630954 | |
| Emailaddress | cchjj@changchai.com |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
| StockexchangewebsitewherethisReportisdisclosed | SecuritiesTimes,TaKungPao(HK) |
| MediaandwebsitewherethisReportisdisclosed | http://www.cninfo.com.cn |
| PlacewherethisReportislodged | BoardSecretariatoftheCompany |
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 91320400134792410W |
| ChangetoprincipalactivityoftheCompanysincegoingpublic | Nochange |
| Everychangeofcontrollingshareholdersinceincorporation | On22November2018,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmenttransferreditsentireholdingsof170,845,236sharesintheCompany(astakeof30.43%)toChangzhouInvestmentGroupCo.,Ltd.fornocompensation,whichhasthusbecomethecontrollingshareholderoftheCompany. |
VOtherInformation
TheindependentauditfirmhiredbytheCompany:
| Name | GongzhengTianyeCertifiedPublicAccountantsLLP |
| Officeaddress | YingtongCommerceBuilding,Changzhou,Jiangsu,China |
| Accountantswritingsignatures | WangWenkai,QinZhijun |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
√Applicable□Notapplicable
| Name | Officeaddress | Representatives | Supervisionperiod |
| ChinaIndustrialSecuritiesCo.,Ltd. | 10/F,ChinaIndustrialSecuritiesPlaza,36ChangliuRoad,PudongNewDistrict,Shanghai | LiuYi,LiLihong | 5July2021-31December2022(continuoussupervisionovermattersassociatedwithunusedraisedfundssince1January2023) |
| DonghaiSecuritiesCo.,Ltd. | 6/F,DonghaiSecuritiesPlaza,1928DongfangRoad,PudongNewDistrict,Shanghai | WangJiangqin,XuQin | 5July2021-31December2022(continuoussupervisionovermattersassociatedwithunusedraisedfundssince1January2023) |
TheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
| 2023 | 2022 | 2023-over-2022change(%) | 2021 | |
| Operatingrevenue(RMB) | 2,155,698,787.49 | 2,182,043,095.61 | -1.21% | 2,452,430,515.60 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 108,495,607.05 | 76,684,796.91 | 41.48% | 103,006,232.54 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | -47,466,184.54 | -73,636,511.02 | —— | 5,329,092.87 |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 137,189,827.35 | 364,930,277.84 | -62.41% | -266,323,779.30 |
| Basicearningspershare(RMB/share) | 0.1537 | 0.1087 | 41.40% | 0.1657 |
| Dilutedearningspershare(RMB/share) | 0.1537 | 0.1087 | 41.40% | 0.1657 |
| Weightedaveragereturnonequity(%) | 3.19% | 2.51% | 0.68% | 3.86% |
| 31December2023 | 31December2022 | Changeof31December2023over31December2022(%) | 31December2021 | |
| Totalassets(RMB) | 5,159,394,958.92 | 5,219,359,853.42 | -1.15% | 4,860,382,961.26 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 3,398,946,911.23 | 3,284,710,665.90 | 3.48% | 3,077,550,018.33 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes√NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
√Yes□No
| Item | 2023 | 2022 | Note |
| Operatingrevenue(RMB) | 2,155,698,787.49 | 2,182,043,095.61 | ProductionandsalesoftheCompany’sprimaryproductsofdieselengines,gasolineengines,etc. |
| Deductionsfromoperatingrevenue(RMB) | 45,321,867.06 | 36,475,111.66 | Otherbusinessrevenuethanthemainoperations |
| Operatingrevenueexclusiveofdeductions(RMB) | 2,110,376,920.43 | 2,145,567,983.95 | Saleofdieselengines,gasolineengines,andaccessories |
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 703,102,297.70 | 647,415,342.15 | 458,557,165.00 | 346,623,982.64 |
| Netprofitattributabletothelistedcompany’sshareholders | 23,934,592.54 | 108,002,732.12 | 24,931,699.23 | -48,373,416.84 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 1,107,543.07 | 4,718,000.91 | -16,029,859.81 | -37,261,868.71 |
| Netcashgeneratedfrom/usedinoperatingactivities | -71,086,048.66 | -33,710,768.09 | -109,331,432.55 | 351,318,076.65 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√No
IXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | 2023 | 2022 | 2021 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 105,702,551.01 | 393,161.73 | 155,515.49 | Expropriationoftheconstructionsonthestate-ownedlandoftheChangzhouWuxingbranchcompanyintheReportingPeriod |
| Governmentgrantsrecognisedincurrentprofitorloss(exclusive | 3,009,573.87 | 3,774,298.59 | 4,268,950.18 | GovernmentgrantsrecognisedincurrentprofitorlosswereRMB6,419,303.33,andtheamountrecognisedin |
| ofthosethatarecloselyrelatedtotheCompany'snormalbusinessoperationsandgiveninaccordancewithdefinedcriteriaandincompliancewithgovernmentpolicies,andhaveacontinuingimpactontheCompany'sprofitorloss) | currentprofitorlossthatwasexclusiveofdeferredincomewasRMB3,409,729.46. | |||
| Gainorlossonfair-valuechangesinfinancialassetsandliabilitiesheldbyanon-financialenterprise,aswellasondisposaloffinancialassetsandliabilities(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 74,628,323.54 | 162,319,373.53 | 114,738,153.54 | IncreaseinthefairvalueoftheCompany’sinterestinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,thesaleofsharesheldbywholly-ownedsubsidiaryHorizonInvestmentinGuilinStarsScienceandTechnologyCo.,Ltd.,aswellasincreasedpricesofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd. |
| Reversedportionsofimpairmentallowancesforreceivableswhicharetestedindividuallyforimpairment | 21,618.24 | 30,000.00 | 147,611.25 | |
| Non-operatingincomeandexpenseotherthantheabove | -254,543.89 | 1,735,346.51 | 2,400,863.71 | |
| Negativegoodwillduetobusinesscombinationnotundercommoncontrol | 1,904,132.58 | |||
| Less:Incometaxeffects | 27,193,473.11 | 19,859,063.58 | 24,027,164.56 | |
| Non-controllinginterestseffects(netoftax) | -47,741.93 | -24,058.57 | 6,789.94 | |
| Total | 155,961,791.59 | 150,321,307.93 | 97,677,139.67 | -- |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable√Notapplicable
NosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysis
IIndustryOverviewfortheReportingPeriod
Weareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasharvesters,tractors,plantprotectionmachinery,smallengineeringmachinery,andshipbornemachinery.
(1)BasicinformationontheindustryTheinternalcombustionengineisanimportantsupportforChina'smanufacturingindustrysecurity,energysecurityandnationaldefensesecurity,andanimportantbasicindustryofnationaleconomyandnationaldefenseconstruction.Theinternalcombustionengineisthemostpower-dense,thermallyefficientandwidelyusedheatenginepowerunit.Inordertoimplementthenationaloveralldevelopmentstrategyofenergyconservation,emissionreduction,transformation,andupgrading,theinternalcombustionengineindustryandagriculturalmachineryindustrywillstrengthenindependentinnovationandresearchanddevelopment,acceleratetheconstructionofacommonbasictechnologyplatform,optimizetheconstructionoftheupstreamanddownstreamindustrychain,implementintelligentmanufacturing,andactivelycarryoutinternationalexchangeandcooperationtoacceleratetherealizationofindustrialtechnologyupgrading.
(2)DevelopmentpatternandtrendoftheindustryIntermsofpolicies,nationalregulationspertainingtointernalcombustionenginetechnologyhaveconsiderablytightened,withanotableemphasisonenergyconservation,emissionsreduction,andreliability,therebymakingthemfocalpointsofindustrialdevelopment.Therigorousenforcementofnationalemissionstandardswillexpeditethedevelopmentanddeploymentofcoretechnologiesandcrucialcomponentswithininternalcombustionengines.Theexplorationanddisseminationofefficientandcleaninternalcombustionengineproductswilldrivethewidespreadadoptionofindependent-brandelectronicfuelinjectionsystems,high-efficiencysuperchargers,andadvancedafter-treatmentsolutions.Inrecentyears,theissuanceoftheNo.1Documentbythecentralgovernmenthasunderscoreditscommitmenttoelevatingtheimportanceofagricultureandbolsteringagriculturaldevelopment.In2024,theNo.1Documentoutlineda"roadmap"tovigorouslyandeffectivelypropelcomprehensiveruralrevitalization.Tostimulatedemandthroughindustrialpolicies,itisimperativetoenhancetheresearchandapplicationproficiencyofagriculturalmachineryandequipment,promotetheinnovationframeworkforcutting-edgeagriculturalmachinery,vigorouslyaddressthedeficienciesinagriculturalmachineryandequipment,bolstertheinformation-basedcapabilitiesandserviceprovisionofagriculturalmachineryandequipment,advancetheintelligenceandautomationlevelsofagriculturalmachinery,reinforcethesynergybetweentechnologyandreform,andintensifyeffortsincoretechnologyresearchanddevelopment,allofwhichwilldelineatethetrajectoryforagriculturalmodernization.Asaresultofthenationalpolicyofsubsidiesforthepurchaseofmachinery,industrialdevelopmentpoliciesandtheimpactofenvironmentalregulationsandrequirements,overallmarketdemandforsingle-cylinderdieselenginesforsmallagriculturalmachineryremainedlow,causingintensecompetition.Despitethegradualincreaseintheuseofsingle-cylinderenginesinthenon-agriculturalsector,overallsalesremainedonadownwardpath.Theyear2023isthefirstyearofupgradingtheNationalEmissionStandardIIItoIV,andtheagricultural
machineryindustryhasenteredadrastic“reshuffle”period.Fromthepointofviewofthedevelopmentoftheindustryasawhole,thesalesoflow-qualityproductscontinuedtoweaken,andhigh-qualityproductscontinuedtotakeovermoremarketshare,whichpromotedthesustainabledevelopmentoftheindustryasawhole.Withthefull-scaleimplementationofNationalEmissionStandardIVforNon-roadVehiclesandtheevolvingmarketdynamics,thepaceofdevelopmentforhigh-endagriculturalmachineryproductsinChinahasaccelerated.High-endandintelligenttrendsofagriculturalmachinerycatalyzedafreshwaveofstructuraltransformationwithintheagriculturalmachineryindustry.Thesectorhasenteredaphaseofprofoundadjustmentspropelledbyoptimizationandupgrading,withagriculturalmachineryenterprisesconcurrentlyembarkingonatrajectoryofhigh-qualitydevelopment,hasteningtheintegrationandadvancementofadvancedtechnologiesencompassingenergyconservationandemissionsreduction,intelligentmanufacturing,andtheenhancementofproductqualityandefficiency.Asnewopportunitiesfordevelopmentariseinthenationalstrategicdeploymentandtheacceleratedtransformationandupgradingprocess,theagriculturalmachinerymarkethasabroadspaceforgrowth.
IIPrincipalActivityoftheCompanyintheReportingPeriod
1.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Ourproductsaremainlyusedinagriculturalmachinery,smallengineeringmachinery,generatorsetsandshipbornemachineryandotherfieldscloselyrelatedtopeople'slivelihood.IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.
2.MainProductsoftheCompanyOurmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
| Mainproducts | Graphicdisplay | Productdescription | Productfeatures | Applicationfields |
| Dieselengine | Ourdieselengineproductsincludesingle-cylinderdieselenginesandmulti-cylinderengines,coveringpowerrangefrom3kWto129kW,andcylinderdiametersfrom65mmto135mm.Besidessaleindomesticmarket,ourdieselenginesaresoldtoSoutheastAsia,SouthAmerica,theMiddleEastandAfrica. | Highpower,lowoilconsumption,lownoise,compactstructure,lowemission,goodreliability | Agriculturalmachinery,constructionmachinery,generatorsets,shipbornemachinery | |
| Gasolineengine | Ourgasolineenginesaremainlygeneral-purposesmallgasolineengines,coveringthepowerrangefrom1.5kWto9.0kW.Besidessaleindomesticmarket,ourgasolineenginesaresoldtoSoutheastAsia,theMiddleEast,Europeand | Simplestructure,goodreliability,easymaintenance | Agriculturalmachinery,smallconstructionmachinery |
3.MajorBusinessModels
(1)R&DmodelWehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedonmarketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologycenterconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability.
(2)PurchasingmodelWeadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplandevelopedbythesalesdepartmentandtheproductionplandrawnupbytheproductiondepartmentintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchaseaccordingtosuchdemand.Meanwhile,thepurchasingdepartmentmakesaplantoguidepartsprocurementaccordingtothesalesdepartment'ssalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.
(3)ProductionmodelWeadoptthe"make-to-order"productionmanagementmodel.Thesalesdepartmentmakessalesplansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedbackofexistingcustomers'purchasingintentions.TheCompany'sproductiondepartmentmakestheproductionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanmadebythesalesdepartmentandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality.
(4)SalemodelWeadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory,andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.
4.TheCompany'spositioninthemarketWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsofChinaInternalCombustionEngineIndustryAssociation(CICEIA),asthelargestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
5.KeyPerformanceDrivers
(1)NationalpolicydriverInrecentyears,theNo.1Documentissuedbythecentralgovernmenthasdemonstratedthegovernment'sintentiontoattachgreaterimportancetoagricultureandstrengthenagriculturaldevelopment,soastopromotethe
developmentofagricultureandruraleconomyandsociety,andstrengthenthesupportofagriculturaltechnologyandequipment.China'sagriculturalmachineryandequipmentindustrylayouthasalwaysbeenbasedonthemainlineofinnovation,focusedoncoretechnology,strengthenedtheconstructionofinnovationcapacity,andstrovetomakeupfortheshortcomingsandweaknesses.ThefullimplementationofNationalEmissionStandardIVandthehigh-endandintelligenttrendsofagriculturalmachineryhavelettheagriculturalmachineryindustrytowardsanewstageofdevelopment.TheActionPlanforPromotingLarge-scaleEquipmentRenewalsandConsumerGoodsTrade-insin2024clarifiesthatoldagriculturalandindustrialmachinerywillberenewed,subsidypolicieswillbecontinuouslyimplementedforagriculturalmachineryscrappingandrenewal,thescrappingandrenewalofoldagriculturalmachinerywillbepromoted,andthestructuraladjustmentofagriculturalmachinerywillbeaccelerated.Theaccelerationofthereplacementprocessofoldequipmentofengineeringmachineryhascreatedafavourablepolicyenvironmentfortheapplicationofinternalcombustionengines.
(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborativeproduction,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargainingpower.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines.
(3)StableandefficientR&DteamWehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.
(4)Well-knownbrandwithmanywell-knowncustomersTheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Ourdieselandgasolineengines,aspowersourcesofagriculturalmachineryandcommercialvehicles,showexcellentperformanceinpowerrange,reliability,powerperlitre,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnershiptimeexceeding15years.ManymainengineplantcustomersoftheCompanyarewell-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket.
IIICoreCompetitivenessAnalysis
1.AdvantagesinBrandChangchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,IATF16949automotiveproductquality
managementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2023,theCompanyanditsproductsgarneredprestigiousaccolades.TheCompanywasrecognizedasoneoftheTop500MachineryIndustryEnterprisesinChina,aNationalDemonstrationEnterpriseofProductandServiceQualityIntegrity,aNationalLeadingEnterpriseintheQualityoftheInternalCombustionEngineIndustry,aNationalLeadingBrandintheQualityoftheInternalCombustionEngineIndustry,andformaintainingStableQualifiedProductsinNationalQualityInspections.Additionally,theCompanywashonouredasoneoftheTop50+AgriculturalMachineryEnterprisesinChina,aLargeKeyOutstandingEnterpriseintheMechanicalIndustry,andreceivedthedistinctionofbeinganInternationallyRenownedBrandCultivatedandDevelopedbyJiangsuProvincefrom2023to2025.Furthermore,theCompanywasrecognizedasanIndustrialFourStarEnterpriseinChangzhou.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,theCompanywasratedasExcellentintheperformanceappraisalbytheprovincialengineeringtechnologyresearchcentrein2023,anditwasawardedthefirstprizeoftheachievementsintheNationalExcellentQualityManagementGroupActivityintheMachineryIndustryin2023.Atthesametime,multipleproductswereawardedtheprovincialcertificationofnewproductsandnewtechnology,andthemunicipalcertificationofhigh-techproducts.DuringtheReportingPeriod,theCompanyobtained19patentauthorizations.Asat2023,theCompanyhadatotalof155validpatentsauthorizeddomesticallyandinternationally,including13inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,withfivemarketingentities,24salesservicecentersand717designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.
IVCoreBusinessAnalysis
1.OverviewIn2023,China'smacroeconomiclandscapedemonstratedasteadyrecoveryandexhibitedadiscernibleupwardtrajectory,althoughoverallvolatilitysurpassedmarketexpectations.Theinternalcombustionenginemarketbenefitedfromvariouspolicies,facilitatingitsrecovery,whilebothupstreamanddownstreamsectorsofthe
industryexperiencedimprovement.WiththecomprehensiveimplementationoftheNationalEmissionStandardIVforNon-roadVehiclesandtheadvancementofmarketdemand,theentireagriculturalmachinerymarketenteredaperiodofin-depthadjustmentsledbyoptimizationandupgrading.Competitionwasintensifying,terminal-sidesaleswereweak,andhigh-qualityoperationanddecelerationoperationremainedthefocusofdevelopment.TheCompanyrallieditseffortsfromtoptobottomtosurmountchallenges,concentratingonaligningproductdevelopment,marketexpansion,andproductionqualitywithannualpoliciesandobjectives.Byseizingopportunities,theCompanyattainedcommendableoutcomesinmarketpenetration,productinnovationandenhancement,aswellascorporatebrandpromotion,thusfosteringthestableandrobustdevelopmentoftheenterprise.DuringtheReportingPeriod,theCompanysoldapproximately630,000dieselengines,gasolineenginesandgeneratorsets,generatingtotalsalesrevenueofRMB2.156billion,almostflatwithlastyear.Intermsofproductdevelopmentandsupport,theCompanycompletedthecertificationandapplicationofmultiplemodelsfortheNationalEmissionStandardIVforNon-roadVehicles,andorderlypromotedthedevelopmentandapplicationofproductsfortheNationalEmissionStandardIVforNon-roadVehiclesinthefieldofengineeringmachinery;basedonmarketvalidationandfeedback,theCompanystrengthenedtheoptimizationofthefullseriesoftheproductsfortheNationalEmissionStandardIVforNon-roadVehicles,providingpowerfulsupportforproductupgrades.TheCompanycontinuouslypromotedthespecialdevelopmentofgeneratorsetsinunmannedaerialvehicleflightdefence,parkingandotherfields,promotedtheresearchanddevelopmentofoutboardengineprojectsandhybridpowerproducts,completedperformancedebuggingandreliabilitytestingofdieselenginesforoutboardenginesofmorepowerranges,andachievedprogressintheresearchanddevelopmentofhybridpowerproductsasscheduled.Intermsofmarketservices,thedomesticmarketadjustedandoptimizeditsdistributionnetwork,consolidateditsadvantagesinapplicationfields,continuouslydeepeneditssupportforsingle-cylinderenginestomultiplenon-agriculturalsegments,andachievedthecomprehensiveinstallationandapplicationofmulti-cylinderenginesfortheNationalEmissionStandardIVforNon-roadVehicles;thegeneratorsetsweregraduallymovingtowardshigh-endandspecializeddevelopmentinthesegmentedfieldofthegeneralmachinerymarket,andlightengineswereappliedintoscenariosofmicroandunmannedequipment,furtheroptimizingproductstructureanddistributionchannels.Atthesametime,theCompanystrengthenedthebuildingofserviceresourcesandthecontrolofserviceprocesses,implementedmultipleroundsofservicetrainingandsystematiccasestudies,andadjustedservicepoliciesduringthebusyfarmingperiod,effectivelyimprovingtheserviceguaranteeworkoftheproductsfortheNationalEmissionStandardIVforNon-roadVehicles.Intermsofqualitymanagement,theCompanycomprehensivelyimprovedthequalitybuildingoftheproductsfortheNationalEmissionStandardIVforNon-roadVehicles,strengthenedwholeprocessmanagement,promotedtheworkofstabilizingandstrengtheningsupplychains,expandedandsupplementedthesupplychainsofcorecomponentsuppliers,andstrictlycontrolledthequalityofproductspareparts.DuringtheReportingPeriod,theCompanyorganizedanannualmanagementreview,conductedaninternalauditonthequalitymanagementsystem,andpassedtheexternalauditsonISO9001andIATF16949qualitymanagementsystems.Intermsofinternalmanagement,theCompanycompletedtheelectionoftheBoardofDirectors,theBoardofSupervisors,andtheManagement,andimproveditsinternalcontrolproceduresandpolicies,continuouslyimprovingtheCompany'smanagementlevel.TheCompanyeffectivelystrengthenedcostcontrolandreducedcostsandexpenses.Additionally,theCompanyfullyimplementedvariouspoliciesandemergencymechanismssuchaspublicsecurityandfiresafety,carriedoutspecialactionsonfiresafety,andorganizedsafetyriskcontrolandhiddendangerinspectionandtreatment.Theseactionseffectivelypreventedandresolvedvarioussafetyrisks,andcreatedasafeandstableenvironmentforenterpriseproductionandoperation.TheCompanycarriedoutaseriesofactivitiestocelebratethe110thanniversaryoftheestablishmentoftheplant,withafocusonproduction
andoperation,corporateculture,andbrandimagepromotion,andstrengthenedthedevelopmentofcorporateculture,achievinggoodresults.DuringtheReportingPeriod,thefundsraisedfromtheprivateplacementinvestmentprojectforrelocatinglightengineswereeffectivelydeployed,andtheinnovationcapacitybuildingprojectofthetechnologycentrewassuccessfullyconcluded.Anysurplusfundsraisedwillbepermanentlyallocatedtoworkingcapitalfollowingthecompletionofrelevantprocedures.InDecember2023,theCompanyacquired7.5%equityheldbythreenaturalpersonshareholdersofZhenjiangSiyang.CurrentlytheCompanyholdsatotalof49%equityinZhenjiangSiyang.Thehouseswithintheexpropriationscopeofthebusplantareas(Phases1and2),includingtheCompany'sWuxingBranch,andthehouseswithintheexpropriationscopeoftheSanjingBranch'soldcityrenovationprojectweresubjecttogovernmentexpropriation.TheCompanyhassignedacompensationagreementforhousingexpropriationwithrelevantgovernmentdepartments.AsatJanuary2024,theCompanyhadreceivedatotalofRMB117millionincompensationforhousingexpropriationfromWuxingBranchandRMB30millioninthefirstphaseofcompensationforhousingexpropriationfromSanjingBranch.
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
| 2023 | 2022 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 2,155,698,787.49 | 100% | 2,182,043,095.61 | 100% | -1.21% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 2,110,376,920.43 | 97.90% | 2,145,567,983.95 | 98.33% | -1.64% |
| Other | 45,321,867.06 | 2.10% | 36,475,111.66 | 1.67% | 24.25% |
| Byproductcategory | |||||
| Dieselengines | 1,908,040,669.16 | 88.51% | 1,971,005,207.88 | 90.33% | -3.19% |
| Gasolineengines | 153,677,944.53 | 7.13% | 148,144,749.68 | 6.79% | 3.73% |
| Other | 93,980,173.80 | 4.36% | 62,893,138.05 | 2.88% | 49.43% |
| Byoperatingsegment | |||||
| Domestic | 1,778,018,604.18 | 82.48% | 1,857,845,869.48 | 85.14% | -4.30% |
| Overseas | 377,680,183.31 | 17.52% | 324,197,226.13 | 14.86% | 16.50% |
| Bymarketingmodel | |||||
| Distribution | 754,228,779.91 | 34.99% | 770,975,653.30 | 35.33% | -2.17% |
| Directsales | 1,401,470,007.58 | 65.01% | 1,411,067,442.31 | 64.67% | -0.68% |
(2)OperatingDivision,ProductCategory,OperatingSegmentorMarketingModelContributingover10%ofOperatingRevenueorOperatingProfit
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 2,110,376,920.43 | 1,813,233,693.78 | 14.08% | -1.64% | -5.77% | 3.76% |
| Byproductcategory | ||||||
| Dieselengines | 1,908,040,669.16 | 1,662,842,571.43 | 12.85% | -3.19% | -7.37% | 3.93% |
| Gasolineengines | 153,677,944.53 | 128,084,343.44 | 16.65% | 3.73% | 1.96% | 1.45% |
| Byoperatingsegment | ||||||
| Domestic | 1,778,018,604.18 | 1,475,842,943.27 | 17.00% | -4.30% | -9.65% | 4.92% |
| Overseas | 377,680,183.31 | 362,912,888.14 | 3.91% | 16.50% | 15.13% | 1.14% |
| Bymarketingmodel | ||||||
| Distribution | 754,228,779.91 | 629,617,071.82 | 16.52% | -2.17% | -7.18% | 4.50% |
| Directsales | 1,401,470,007.58 | 1,209,138,759.59 | 13.72% | -0.68% | -4.82% | 3.75% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
| Operatingdivision | Item | Unit | 2023 | 2022 | Change(%) |
| Dieselengines | Unitsales | Unit | 478,280 | 458,300 | 4.36% |
| Output | Unit | 513,177 | 439,604 | 16.74% | |
| Inventory | Unit | 99,764 | 64,867 | 53.80% |
Anyover30%YoYmovementsinthedataaboveandwhy:
√Applicable□NotapplicableTheinventorychangedmainlybecausetheCompanyadjusteditsmarketingstrategyandincreasedtheinventoryofdieselengines.
(4)ExecutionProgressofMajorSignedSalesandPurchaseContractsintheReportingPeriod
□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
| Product | Item | 2023 | 2022 | Change(%) |
| category | Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | ||
| Dieselengines | Rawmaterials | 1,458,317,249.89 | 79.31% | 1,560,381,852.91 | 80.07% | -6.54% |
| Laborcost | 225,056,024.38 | 12.24% | 229,434,494.85 | 11.77% | -1.91% | |
| Depreciation | 58,676,870.45 | 3.19% | 56,624,131.58 | 2.91% | 3.63% | |
| Energy | 24,344,615.38 | 1.32% | 15,340,866.19 | 0.79% | 58.69% |
EnergycostchangedmainlybecausetheCompany’sfoundrybusinesswasinnormaloperationin2023,consumingmoreenergythanitwasin2022duringarelocation.
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
□Yes√No
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
(8)MajorCustomersandSuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 890,387,045.58 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 41.30% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | CustomerA | 376,215,480.62 | 17.45% |
| 2 | CustomerB | 218,582,431.48 | 10.14% |
| 3 | CustomerC | 118,884,227.95 | 5.51% |
| 4 | CustomerD | 117,597,908.00 | 5.46% |
| 5 | CustomerE | 59,106,997.53 | 2.74% |
| Total | -- | 890,387,045.58 | 41.30% |
Otherinformationaboutmajorcustomers:
□Applicable√NotapplicableMajorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 318,965,836.36 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 17.35% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | SupplierA | 110,589,895.80 | 6.01% |
| 2 | SupplierB | 83,433,267.64 | 4.54% |
| 3 | SupplierC | 60,956,732.67 | 3.32% |
| 4 | SupplierD | 41,071,878.77 | 2.23% |
| 5 | SupplierE | 22,914,061.49 | 1.25% |
| Total | -- | 318,965,836.36 | 17.35% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable
3.Expense
Unit:RMB
| 2023 | 2022 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 99,603,282.16 | 102,630,223.71 | -2.95% | |
| Administrativeexpense | 123,981,333.99 | 119,511,189.72 | 3.74% | |
| Financecosts | -11,284,676.92 | -21,589,704.63 | —— | Decreasedexchangegainsandinterestincome |
| R&Dexpenses | 90,339,104.33 | 81,239,597.06 | 11.20% |
4.R&DInvestments
√Applicable□Notapplicable
| MajorR&Dproject | Purpose | Progress | Specificobjectives | ExpectedimpactontheCompany |
| Developmentof390superchargeddieselengines | Developing390superchargeddieselengineswithhightorque,lightweight,energy-savingandemissionreductionforagriculturalmachinery | Inprogress | Significantoptimizationdesignhasbeencarriedoutonthestructureandperformanceofdieselengines,resultinginasignificantleapinthereliability,fuelconsumption,emissionsandotherindicatorsoftheproducts,reachingtheadvancedlevelofsimilarforeignproducts,andmeetingtheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theengineswillfurthermeettheapplicationrequirementsofvarioussmallandmedium-sizedagriculturalmachinery.Theproductshaveacleartargetmarketpositioning,withbroadmarketprospects. |
| Developmentof4L88dieselengines | Developingefficientandenvironmentally-friendlydiese | Inprogress | Bydevelopingtechnology,optimizingmatching,andpost-processingtechniques,d | Aftertheimplementationoftheproject,theproductwillmeettherequire |
| with37KWandbelowfortheNationalEmissionStandardIVforNon-roadVehicles | lenginesthatmeetemissionrequirements | ieselengineswillmeettheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | mentsoftheoriginalapplicationfieldandhaveabroadmarketapplicationprospect. | |
| Developmentofenginesforminingpickuptrucks | Developingenginesforcommonrailminingpickuptrucksthatmeetthepowerapplicationrequirementsofpickupsforundergroundoperationsandmining,andthatareenergy-saving,emissionreducing,andenvironmentallyfriendly | Inprogress | Throughtechnologicalresearchanddevelopment,theCompanyaimstocreateundergroundpowersystemswithexcellentperformanceindicatorsandcharacteristicssuchashighreliability,lowvibration,lownoise,andsafetythatmeettheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehiclesandrelatedrequirements.TheeconomicandpowerperformanceindicatorsoftheengineswillreachtheleadinglevelinChina. | Aftertheimplementationoftheproject,theCompanywillfurtherexpanditsproductline,explorethepowermarket,andincreaseapplicationfields.Theproductswillhavebroadmarketprospects,addingnewprofitgrowthpointsfortheCompany. |
| Developmentof178FAair-cooleddieselenginesfortheNationalEmissionStandardIVforNon-roadVehicles | Developingefficientandenergy-savingdieselenginesthatmeettheemissionrequirements | Inprogress | Significantoptimizationdesignhasbeencarriedoutonthestructureandperformanceofdieselengines,resultinginasignificantleapinthereliability,fuelconsumption,emissionsandotherindicatorsoftheproduct,reachingtheadvancedlevelofsimilarforeignproductsandmeetingtheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theproductwillmeettheapplicationrequirementsofvarioussmall-sizedagriculturalmachinery,complywithenergy-savingandenvironmentalprotectionpolicies,andhavebroadmarketprospects. |
| DevelopmentofL12water-cooleddieselenginesfortheNationalEmissionStandardIVforNon-roadVehicles | Developingefficient,environmentally-friendly,andenergy-savingsingle-cylinderdieselengines | Inprogress | Improveproductreliability,saveenergyconsumption,andtheemissionindicatorswillmeettheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theCompanywillexpandtheproductapplicationfields,enrichproductreserves,complywithnationalpolicies,andmeetthemachineryapplicationrequirementsandmarketdemand. |
| Developmentprojectof | Developingsingle-cylinderdieselen | Inprogres | Improvingdieselengine’spowerperformance,econo | Aftertheimplementationoftheproject,theprod |
| single-cylinderdieselengineswithamechanicalpumpthatcanmeettheNationalEmissionStandardIVforNon-roadVehicles | gineswithamechanicalpumpthathavehigherperformanceandmeettheNationalEmissionStandardIVforNon-roadVehicles | s | micefficiencyoffuel,andotherperformanceindicators,aswellasservicelifeandmakingtheemissionindicatorsmeettheNationalEmissionStandardIVforNon-roadVehicles | uctwillmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehiclesintermsoftheemissionindicatorsandmeetthesupportingrequirementsofmachinery,bringingaboutnewgrowthpointsfortheCompany’sbenefits. |
| Developmentprojectof4G29dieselengine | Developingdieselenginesthathavehigherperformanceandmeettheemissionrequirements | Inprogress | Improvevariousperformanceindicatorsofdieselengines,meetdomesticallyadvancedlevelintermsofeconomicefficiencyandpowerperformanceandmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theupgradeddieselenginewillmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehiclesanddrivetheCompany’snon-roadvehicletechnologiestobemorematureandwell-developed. |
| Developmentprojectofthespecialdieselengineofthemotorcycle | Developinglightweightsingle-cylinder,water-cooled,high-speeddieselenginestomeetthepowerrequirementsofmotor-tricycleinthemarket | Inprogress | Makingmajoroptimizationofthedieselengine’sstructureandperformancetomeettheadvancedlevelofsimilarproductsabroadaswellastherequirementsoftheNationalEmissionStandardIVforThree-wheelers. | DiversifyingtheCompany’sproducts,furtherexpandingthepowermarket,andmeetingnon-emissionregulatoryrequirementscanbringaboutnewgrowthpointsfortheCompany’sbenefits. |
| Developmentofdieselenginesforhigh-horsepoweroutboardengines | Developingefficient,environmentally-friendlyandenergy-savingoutboardengines | Thedevelopmentofhigh-horsepoweroutboardenginepowerplatformhasbeencompleted | Byapplyinghigh-performancetechnologiessuchasenergy-saving,noisereduction,environmentalprotection,materialsaving,andlongevityenhancementofdieselengines,energysavingshasbeenachieved,meetingtheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles,andmeetingtheapplicationrequirementsofvarioussmallfishingmachinery. | Aftertheimplementationoftheproject,theproducthasobviousadvantagesinpower,safety,economy,andenvironmentalprotection,meetingtheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. |
| DevelopmentofD15dieseloutboardengine | Developingmoreefficient,environmentallyfriendlyandenergy-savingdiesel-poweredprod | Completed | Conductingmajordesignoptimizationoftheenginestructureandperformancetoimprovethereliability,fuelconsumption,emissionsandotherindicatorsofth | Aftertheimplementationoftheproject,theproductwillmeettherequirementsofnon-roadChinaIVvehicleemissionregulationsandopenupthe |
| ucts | eproduct,soastoreachtheadvancedlevelofsimilarforeignproducts. | marketofshipmachinery. | ||
| Developmentofpowerandassemblyfordieseloutboardengines | Developingefficient,environmentally-friendlyandenergy-savingpowerandassemblyfordieseloutboardengines | Completed | Optimizationdesignhasbeencarriedoutonthestructureandperformanceoftheengines,resultinginasignificantleapinthereliability,fuelconsumption,emissionsandotherindicatorsoftheproducts,reachingtheadvancedlevelofsimilarforeignproducts,andmeetingtheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theproductsmeettheemissionrequirementsofNationalEmissionStandardIVforNon-roadVehicles,andhaveawiderangeofapplicationscenariosandbroadmarketprospects. |
| Developmentofdiesel-electrichybridproducts | Developingefficientandenvironmentallyfriendlydiesel-poweredproducts | Completed | Improvingtheemissioncharacteristicsandeconomiccharacteristicsofdiesel-electrichybriddieselenginestoenhancetheenergyefficiency,enduranceandreliability. | Aftertheimplementationoftheproject,theproductmeetsthemarketdemandandmakesthegoodsqualityandlogisticsefficiencyofthecoldchaintimely,safeandefficient,providingawhole-proceduretemperatureandqualitymanagementsolution. |
| DevelopmentofV402dieselengines | Developinglightmulti-cylinderdieselenginesthathavehigherperformanceandmeetemissionrequirements | Completed | Thestructureofdieselenginecomponentshasbeenoptimizedtoimproveproductperformanceandreliability. | Aftertheimplementationoftheproject,theproductsmeettheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles,andsatisfythemachineryapplicationrequirementsandmarketdemand. |
| Developmentoflightlow-emissioncommon-railseriesdieselengines | Developingsmall-boreandmulti-cylinderdieselstomeettheapplicationrequirementsofricetransplanters,plantprotectionspraymachines,tractors,smallengineeringmachineryandgardeningmachinery | Completed | Optimizeandupgradetheproduct,increaseenginepower,andmeettheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theupgradeddieselengineshavebroadandgoodmarketapplicationprospects,aswellasamorecompetitiveadvantageinthemarket. |
DetailsaboutR&Dpersonnel:
| 2023 | 2022 | Change(%) | |
| NumberofR&Dpersonnel | 225 | 236 | -4.66% |
| R&Dpersonnelas%oftotalemployees | 8.74% | 8.89% | -0.15% |
| EducationalbackgroundofR&Dpersonnel | |||
| Bachelor’sdegree | 96 | 101 | -4.95% |
| Master’sdegree | 6 | 7 | -14.29% |
| AgestructureofR&Dpersonnel | |||
| Below30 | 31 | 25 | 24.00% |
| 30~40 | 77 | 84 | -8.33% |
DetailsaboutR&Dinvestments:
| 2023 | 2022 | Change(%) | |
| R&Dinvestments(RMB) | 90,339,104.33 | 81,239,597.06 | 11.20% |
| R&Dinvestmentsas%ofoperatingrevenue | 4.19% | 3.72% | 0.47% |
| CapitalizedR&Dinvestments(RMB) | 0.00 | 0.00 | —— |
| CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 0.00% | 0.00% | —— |
ReasonsforanysignificantchangeinthecompositionofR&Dpersonnelandtheimpact:
□Applicable√NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonsforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
| Item | 2023 | 2022 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 2,169,305,862.90 | 2,150,597,784.38 | 0.87% |
| Subtotalofcashusedinoperatingactivities | 2,032,116,035.55 | 1,785,667,506.54 | 13.80% |
| Netcashgeneratedfrom/usedinoperatingactivities | 137,189,827.35 | 364,930,277.84 | -62.41% |
| Subtotalofcashgeneratedfrominvestingactivities | 1,197,150,475.33 | 944,067,348.19 | 26.81% |
| Subtotalofcashusedininvestingactivities | 1,044,165,754.31 | 1,082,020,854.62 | -3.50% |
| Netcashgeneratedfrom/usedininvestingactivities | 152,984,721.02 | -137,953,506.43 | —— |
| Subtotalofcashgeneratedfromfinancingactivities | 135,437,700.65 | -100.00% | |
| Subtotalofcashusedinfinancingactivities | 131,365,400.07 | 114,312,925.54 | 14.92% |
| Netcashgeneratedfrom/usedinfinancingactivities | -131,365,400.07 | 21,124,775.11 | —— |
| Netincreaseincashandcashequivalents | 161,278,557.41 | 247,948,744.46 | -34.95% |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable?NotapplicableThesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedinthecompany'sincreaseindieselenginereserveinventoryandtheincreaseinprocurementfundspaidtosupplierduringthereportingperiod.Thesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedininvestingactivitieswasprimarilybecausethecompanycompresseditswealthmanagementscale,recoveredsomeofitswealthmanagementfunds,and
receivedsomelandcollectionandstoragefundsfromChangzhouWuxingBranch.Thesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedinfinancingactivitieswasprimarilybecausebankacceptancenoteswithlowcreditlevelswerediscountedinthepriorperiod,withnocomparableeventinthecurrentperiod.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod
√Applicable?NotapplicableThebigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriodwasmainlybecauseoftheimpactonthecurrentincomeofthefairvaluechangesofthefinancialassetsheldbytheCompany,theimpactonthecurrentprofitorlossoftherequisitionofthestate-ownedlandofthebranchcompanyinWuxing,Changzhou,andthediscountingofcertainbankacceptancenoteswithhighcreditlevels.VAnalysisofNon-CoreBusinesses
√Applicable?Notapplicable
Unit:RMB
| Amount | As%ofgrossprofit | Source | Recurrentornot | |
| Returnoninvestment | 19,102,348.95 | 12.54% | Dividendsfromstocksheld,incomefromcashmanagement,andthesaleofsharesheldbywholly-ownedsubsidiaryHorizonInvestmentinGuilinStarsScienceandTechnologyCo.,Ltd., | Yes |
| Gains/lossesonchangesinfairvalue | 49,816,098.68 | 32.70% | IncreaseinthefairvalueoftheCompany’sinterestinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,aswellasincreasedpricesofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd. | No |
| Assetimpairmentloss | -27,893,895.75 | -18.31% | Inventoryvaluationloss | No |
| Non-operatingincome | 927,993.65 | 0.61% | Compensationfortrademarkrightsofsubsidiary | No |
| Non-operatingexpense | 1,182,537.54 | 0.78% | Lossonretirementofnon-currentassets | No |
| Assetdisposalincome | 105,702,551.01 | 69.39% | Expropriationoftheconstructionsonthestate-ownedlandoftheChangzhouWuxingbranchcompanyintheReportingPeriod | No |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 31December2023 | 1January2023 | Changein | Reasonforany |
| Amount | As%oftotalassets | Amount | As%oftotalassets | percentage(%) | significantchange | |
| Monetaryassets | 1,083,867,966.87 | 21.01% | 930,013,350.97 | 17.82% | 3.19% | Thestrengthenedcollectionofpaymentsbycustomers,andthediscountingofcertainbankacceptancenotesfromcustomersintheReportingPeriod. |
| Accountsreceivable | 316,543,159.91 | 6.14% | 370,322,179.77 | 7.10% | -0.96% | |
| Inventories | 789,220,185.68 | 15.30% | 571,996,881.74 | 10.96% | 4.34% | DuringtheReportingPeriod,theCompanyadjusteditsmarketingstrategyandincreasedtheinventoryofdieselengines. |
| Investmentproperty | 39,837,558.11 | 0.77% | 42,160,779.65 | 0.81% | -0.04% | |
| Fixedassets | 675,596,920.95 | 13.09% | 720,061,387.76 | 13.80% | -0.71% | |
| Constructioninprogress | 4,275,622.18 | 0.08% | 30,281,547.56 | 0.58% | -0.50% | Wholly-ownedsubsidiaryChangchaiMachinery’slightweightengineandcastingrelocationprojectwastransferredfromconstructioninprogresstofixedassetsintheReportingPeriod. |
| Short-termborrowings | 0.00 | 0.00% | 115,437,700.65 | 2.21% | -2.21% | Mainlyduetotheterminationofrecognitionofallbankacceptancebillswithlowercreditratingsdiscountedintheearlyandreportingperiods. |
| Contractliabilities | 33,352,877.66 | 0.65% | 32,843,692.83 | 0.63% | 0.02% |
Indicatewhetheroverseasassetstakeupahighpercentageintotalassets.
□Applicable√Notapplicable
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(derivativefinancialassetsexclusive) | 370,103,602.57 | 10,401,521.88 | 0.00 | 0.00 | 947,071,904.04 | 1,109,608,816.74 | 0.00 | 225,641,429.94 |
| 4.Investmentinotherequityinstruments | 955,560,240.08 | 0.00 | 13,927,785.59 | 0.00 | 0.00 | 0.00 | 0.00 | 969,488,025.67 |
| Subtotaloffinancialassets | 1,325,663,842.65 | 10,401,521.88 | 13,927,785.59 | 0.00 | 947,071,904.04 | 1,109,608,816.74 | 0.00 | 1,195,129,455.61 |
| Other | 412,809,587.93 | 39,414,576.80 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 453,688,086.55 |
| Totalofabove | 1,738,473,430.58 | 49,816,098.68 | 13,927,785.59 | 0.00 | 947,071,904.04 | 1,109,608,816.74 | 0.00 | 1,648,817,542.16 |
| Financialliabilities | 0.00 | 0.00 | ||||||
Contentsofotherchange:N/ASignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
Unit:RMB
| Item | Attheperiod-end | Attheperiod-begin | ||||||
| Grossamount | Carryingamount | Typeofrestriction | Reasonforrestriction | Grossamount | Carryingamount | Typeofrestriction | Reasonforrestriction | |
| Monetaryassets-othermonetaryassets | 76,238,443.41 | 76,238,443.41 | Securitydeposits | Securitydepositsassociatedwithbankacceptancenotes,environment,etc. | 95,662,384.92 | 95,662,384.92 | Securitydeposits | Securitydepositsassociatedwithbankacceptancenotes,environment,etc. |
| Fixedassets-buildingsandconstructions | 1,332,812.48 | 1,332,812.48 | Ascollateral | Ascollateralfortheissueofbankacceptancenote | 1,530,890.90 | 1,530,890.90 | Ascollateral | Ascollateralforbankloan |
| Intangibleassets-landuserights | 847,162.28 | 847,162.28 | Ascollateral | Ascollateralfortheissueofbankacceptancenote | 879,275.35 | 879,275.35 | Ascollateral | Ascollateralforbankloan |
| Fixedassets-plantandequipment | 23,728,733.18 | 23,728,733.18 | Ascollateral | Ascollateralfortheissueofbankacceptancenote | 31,222,420.22 | 31,222,420.22 | Ascollateral | Ascollateralforbankloan |
| Notesreceivable-discountedunduenotes | 110,000,000.00 | 110,000,000.00 | Paymentobligationofdiscountedunduenotes | Discountedattheperiod-endandundueatthebalancesheetdate | ||||
| Notesreceivable-transferredunduenotes | 55,979,832.64 | 55,979,832.64 | Paymentobligationoftransferredunduenotes | Endorsedattheperiod-endandundueatthe | 66,395,231.83 | 66,395,231.83 | Paymentobligationoftransferredunduenotes | Endorsedattheperiod-endandundueatthe |
| balancesheetdate | balancesheetdate | |||||||
| Total | 158,126,983.99 | 158,126,983.99 | 305,690,203.22 | 305,690,203.22 |
VIIInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| InvestmentsmadeinReportingPeriod(RMB) | Investmentsmadeinsameperiodoflastyear(RMB) | +/-% |
| 7,170,000.00 | 108,520,800.00 | -93.39% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingamount | Gain/lossonfairvaluechangesintheReportingPeriod | Accumulatedfairvaluechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingamount | Accountingtitle | Fundingsource |
| Domestic/foreignstock | 600166 | FotonMotor | 41,784,000.00 | Fairvaluemethod | 406,045,000.00 | 0.00 | 352,701,000.00 | 0.00 | 0.00 | 0.00 | 394,485,000.00 | Investmentinotherequi | Self-funded |
| tyinstruments | |||||||||||||
| Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 170,586,000.00 | 0.00 | 113,760,000.00 | 0.00 | 0.00 | 11,482,380.00 | 156,546,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 13,592,411.00 | 4,527,450.00 | 0.00 | 0.00 | 0.00 | 4,527,450.00 | 18,119,861.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 60,062,400.00 | 6,811,200.00 | 0.00 | 0.00 | 0.00 | 6,702,140.38 | 66,873,600.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 247,000.00 | 54,560.00 | 0.00 | 0.00 | 0.00 | 69,683.02 | 301,560.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 832885 | StarsScienceandTechnology | 3,600,000.00 | Fairvaluemethod | 4,837,500.00 | -1,237,500.00 | 0.00 | 0.00 | 7,385,857.60 | 2,627,796.19 | 0.00 | Held-for-tradingfinancialassets | Self-funded |
| Total | 115,532,012.76 | -- | 655,370,311.00 | 10,155,710.00 | 466,461,000.00 | 0.00 | 7,385,857.60 | 25,409,449.59 | 636,326,021.00 | -- | -- | ||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
5.UseofRaisedFunds
√Applicable□Notapplicable
(1)OverallUseofRaisedFunds
√Applicable□Notapplicable
Unit:RMB’0,000
| Yearforfund-raising | Methodoffund-raising | Totalraisedfunds | Netproceeds | Totalraisedfundsthathavebeenusedinthecurrentperiod | Totalraisedfundsthathavebeenusedaccumulatively | TotalraisedfundswithalteredpurposesduringtheReportingPeriod | Totalaccumulativeraisedfundswithalteredpurposes | Proportionoftotalaccumulativeraisedfundswithalteredpurposes | Totalraisedfundsthathavenotbeenusedyet | Useandownershipchangeofunusedraisedfunds | Raisedfundsthathavebeenleftunusedforovertwoyears |
| 2021 | Non-publicoffering | 63,500.00 | 62,066.57 | 23,960.95 | 57,138.48 | 0 | 0 | 0.00% | 0 | N/A | 0 |
| Total | -- | 63,500.00 | 62,066.57 | 23,960.95 | 57,138.48 | 0 | 0 | 0.00% | 0 | -- | 0 |
| Explanationoftheoveralluseofraisedfunds | |||||||||||
| On17December2020,theCompanyreceivedtheReplyConcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.OnJune11,2021,thesubscribersofthisnon-publicofferinghavefullyremittedthesubscriptionfundstothebankaccountdesignatedbythesponsorinstitution,andthetotalamountoffundsraisedwasRMB634,999,996.40.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B061)wasissued.Withtheissuanceexpensesdeducted,theactualnetfundsraisedwereRMB620,665,733.97.OnJune15,2021,theaforementionedraisedfundswereremittedtothespecialaccountsetupbytheCompanyforraisedfundsfromthenon-publicofferingofshares.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B062)wasissued.Theraisedfundshaveallbeendepositedinthespecialaccountfortheraisedfundsandatripartitesupervisionagreementhasbeensignedwiththesponsorinstitutionandtheaccountopeningbankforthefundsraised.ThereisnomaterialdifferencebetweenthetripartitesupervisionagreementandthemodeltripartitesupervisionagreementofShenzhenStock | |||||||||||
(2)CommittedProjectsofRaisedFunds
√Applicable□Notapplicable
Unit:RMB’0,000
Exchange,andtheCompanystrictlycomplieswithitwhenusingtheraisedfunds.Asat31December2023,theCompanyhadusedatotalofRMB571,384,800inraisedfunds.Theproposedraisedfunds(includinginterestinthespecialaccountforraisedfundsandnetincomefromwealthmanagement)forthePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEnginesandCastingwerefullyutilizedasplanned;theR&DprojectsforinnovationcapacitybuildingrealizedtheplannedR&DgoalsandachievedcorrespondingR&Dresults.TheCompanycompletedtheinnovationcapacitybuildingprojectforthefundraisingprojectandwillpermanentlysupplementthesurplusraisedfundsofRMB60,242,000toworkingcapitalforroutineproductionandoperationactivities.Thisprojectwasapprovedatthethirdextraordinarygeneralmeetingin2023.Thespecialaccountforraisedfundswascancelledandwillnolongerbeused.TherelevantraisedfundssupervisionagreementssignedbetweentheCompanyandthesponsors,aswellasthecommercialbanksthatdeposittheraisedfunds,willbeterminatedaccordingly.Fordetails,pleaserefertotheAnnouncementontheUseofSurplusRaisedFundsandCancellationofSpecialAccountforRaisedFundsforthePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEngines(AnnouncementNo:2023-060),theAnnouncementontheCompletionoftheProjectofInnovationCapacityBuildingoftheTechnologyCentreinPrivatePlacementRaisedFundsInvestmentProjectandPermanentSupplementofSurplusRaisedFundstoWorkingCapital(AnnouncementNo.:2023-068),andtheAnnouncementonResolutionsoftheThirdExtraordinaryGeneralMeetingin2023(AnnouncementNo.:
2023-072),whichweredisclosedonthehttp://www.cninfo.com.cn.
Committedinvestmentprojectsandinvestmentofexcessiveraised
funds
| Committedinvestmentprojectsandinvestmentofexcessiveraisedfunds | Whetherprojectshavebeenaltered(includingpartialalternation) | Totalcommittedinvestmentwithraisedfunds | Adjustedtotalinvestmentamount(1) | TheinvestmentamountduringtheReportingPeriod | AccumulativeinvestmentamountasoftheendoftheReportingPeriod(2) | InvestmentprogressasoftheendoftheReportingPeriod(3)=(2)/(1) | Datewhentheprojectsarereadyfortheirintendeduse | BenefitsrecordedduringtheReportingPeriod | Whethertheestimatedbenefitsarereached | Whethertherearematerialchangesintheprojectfeasibility |
| Committedinvestmentprojects | ||||||||||
| Relocationprojectoflightenginesandcasting | No | 54,766.71 | 54,766.71 | 23,376.88 | 55,795.20 | 101.88% | May2022 | -6,000.61 | No | No |
| Innovationcapacitybuildingprojectofthe | No | 8,733.29 | 7,299.86 | 584.08 | 1,343.28 | 18.40% | December2023 | 0.00 | Notapplicable | No |
| technicalcenter | ||||||||||
| Subtotalofcommittedinvestmentprojects | -- | 63,500 | 62,066.57 | 23,960.96 | 57,138.48 | -- | -- | -6,000.61 | -- | -- |
| Investmentofexcessiveraisedfunds | ||||||||||
| Notapplicable | ||||||||||
| Total | -- | 63,500 | 62,066.57 | 23,960.96 | 57,138.48 | -- | -- | -6,000.61 | -- | -- |
| Explainprojectbyprojectwhyaprojectfailedtomeetthescheduleorexpectedreturns(includingreasonforinputting“N/A”for“Whethertheestimatedbenefitsarereached”) | ThereasonwhytheprojectofrelocationoflightenginesandcastingfailedtoachievebenefitsduringthisReportingPeriod:Theprojectconsistedofmultipleproductionlinessuchascastingandsingle-cylinderengineassembly,withthemaincustomerbeingtheparentcompany.Duetomarketconditions,therewasacertaindegreeofreductionininternalandexternalordersforthecastingbusiness,andtheproject'smainsourceofprofit,thesingle-cylinderenginebusiness,wasnotfullytransferredfromtheparentcompanytotheprojectuntiltheendof2023,resultingintheprojectfallingshortofitsexpectedbenefits. | |||||||||
| Explanationsofthematerialchangesintheprojectfeasibility | Notapplicable | |||||||||
| Amount,use,anduseprogressofexcessiveraisedfunds | Notapplicable | |||||||||
| Implementationoflocationchangesintheinvestmentprojectswiththeraisedfunds | Applicable | |||||||||
| Occurredintheprioryear | ||||||||||
| TheProposalonAddingImplementationLocationtothePrivatePlacementRaisedFundsInvestmentProjectofInnovationCapacityBuildingoftheTechnicalCentrewasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.TheCompanydecidedtoaddthesitesofcertainbranchesoftheCompanyastheparentandwholly-ownedsubsidiaryChangchaiMachineryaslocationstoplacetheR&DequipmentandimplementtheR&Dproject.Thischangewillnotre-purposetheraisedfundsandwillhelpcarryforwardthetechnicalinnovationproject. | ||||||||||
| Implementationofmethodadjustmentstotheinvestmentprojectswiththeraisedfunds | Notapplicable | |||||||||
| Earlyinvestmentandplacementconcerningtheinvestmentprojectswiththeraisedfunds | Applicable |
| Priortotheavailabilityoftheraisedfunds,inordertoensurethesmoothimplementationoftheinvestmentprojectswithraisedfunds,theCompanyuseditsownfundstoinvestinpartoftheinvestmentprojectswithraisedfundsandpaidpartoftheissuanceexpenses.Asof17June2021,thecumulativeamountoftheCompany'sself-financingfundspre-investedintheinvestmentprojectswithraisedfundswasRMB181,803,327.94,theamountofissuanceexpensesadvancedwasRMB2,358,490.56,totalingRMB184,161,818.50,andtheproposedreplacementamountwasRMB184,161,818.50.ThecapitalswereverifiedbytheGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),andtheVerificationReportonthePre-investmentofSelf-financingFundsintotheInvestmentProjectwithRaisedFundsandthePaymentofIssuanceExpensesbySelf-financingFundsofChangchaiCo.,Ltd.(S.G.W[2021]E1347)wasissuedon25June2021.On28June2021,theThirdInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonReplacingtheFundsPre-investedintheProjectandAdvancedIssuanceExpenseswiththeRaisedFunds,agreeingtousetheraisedfundsfromthenon-publicofferingofsharestoreplacetheself-financingfundstotalingRMB184,161,818.50thathadbeenpre-investedintheprojectpriortotheavailabilityoftheraisedfunds.Inaddition,XingyeSecuritiesCo.,Ltd.andDonghaiSecuritiesCo.,Ltd.issuedaverificationopinionontheuseofraisedfundstoreplaceself-financingfundsthathadbeeninvestedinadvanceintheprojectswithraisedfunds.Fordetails,seetheAnnouncementontheUseofRaisedFundstoReplacePre-investedProjectFundsandAdvancedIssueExpenses(AnnouncementNo.2021-036)publishedonCninfo(http://www.cninfo.com.cn)on30June2021. | |
| Temporaryreplenishmentofworkingcapitalwiththeidleraisedfunds | Notapplicable |
| Surplusraisedfundsforprojectimplementationandreasonsforthesurplus | Applicable |
| On14November2023,theThirdInterimMeetingoftheBoardofDirectorsoftheCompanyin2023deliberatedandapprovedtheProposalontheCompletionoftheProjectofInnovationCapacityBuildingoftheTechnologyCentreinPrivatePlacementRaisedFundsInvestmentProjectandPermanentSupplementofSurplusRaisedFundstoWorkingCapital,agreeingtoclosethe"ProjectofInnovationCapacityBuildingoftheTechnologyCentre"intheCompany'sPrivatePlacementRaisedFundsInvestmentProjectandpermanentlysupplementthesurplusraisedfundswithworkingcapitalofRMB60,236,300(actualdataissubjecttobanksettlementamount).Asat31December2023,theCompanyhadtransferredalltheabove-mentionedsurplusfundstoitsownfundaccount,withanactualamountofRMB60,242,041.74supplementedtoworkingcapital.Themainreasonsforthesurplusofraisedfunds:1.Duringtheimplementationofinnovationcapacitybuildingproject,theCompanystrictlyfollowedtherelevantregulationsontheuseofraisedfunds,scientificallyandprudentlyusedtheraisedfunds,adheredtotheprinciplesofsavingfundsandimprovingassetutilizationrate,andintegratedexistingequipmentandotherresourceswhileensuringprojectprogress,and |
| usedtechnologicalinnovationtocompletepartoftheresearchanddevelopmentprocess,savingsomefinancialexpenses.2.Inordertoimprovetheusingefficiencyofraisedfunds,theCompanyobtainedcertaininvestmentreturnsbyusingsomeidleraisedfundsforcashmanagement,whileensuringthatitdidnotaffectthebuildingoffundraisingprojectsandthesafetyofraisedfunds.Meanwhile,acertainamountofdepositinterestincomewasgeneratedduringthedepositperiodoftheraisedfunds. | |
| Useandownershipchangeofunusedraisedfunds | AsofDecember31,2023,allfundsraisedfortherelocationprojectofthecompany'snon-publicofferingfundraisingprojecthavebeenfullyutilized,andtheinnovationcapacityconstructionprojectofthenon-publicofferingfundraisingprojecthasbeencompleted.Thequalityassurancedepositandfinalpaymenttobepaidafterthecompletionoftheinnovationcapacityconstructionprojectare2.49millionyuan. |
| Problemsintheuseofraisedfundsanddisclosure,orothercases | On13July2021,theFourthInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonChangingtheImplementationEntityofSomeInvestmentProjectswithRaisedFunds,agreeingtochangetheimplementationentityoftheCompany'sinvestmentprojectswithfundsraisedthroughnon-publicofferingofshares,the"relocationprojectoflightenginesandcasting",fromChangchaiMachinery,awholly-ownedsubsidiaryoftheCompany,totheparentcompanyofChangchaiCo.,Ltd.Thematterdidnotchangetheuseandimplementationofthefundsraisedandwasnotasignificantchangeintheinvestmentprojectswithraisedfunds.TheProposalonAddingImplementationEntitytothePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEnginesandCastingwasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.Assuch,theCompanyaddedChangchaiMachineryasanotheroperatingentitywiththeCompanyastheparenttojointlyoperatetherelocationprojectforbetteroperationalflexibilityandstrongermarketcompetitiveness. |
(3)AlteredProjectsofRaisedFunds
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√Notapplicable
IXMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 147,378,887.22 | 76,927,100.64 | 220,119,687.04 | -2,783,191.08 | -3,123,281.26 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 63,531,353.62 | 49,947,198.85 | 43,364,246.66 | 1,258,490.11 | 261,794.64 |
| HorizonInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 108,778,481.44 | 91,623,437.75 | 0.00 | 14,145,897.62 | 10,692,336.36 |
| HorizonAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 2,946,402.96 | -16,003,077.63 | 5,762,363.85 | -1,022,929.03 | -948,611.03 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 118,648,070.60 | 98,943,419.34 | 153,677,944.53 | 13,465,568.83 | 12,559,610.52 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 300,000,000.00 | 710,909,795.88 | 217,446,076.75 | 135,924,117.06 | -57,540,287.98 | -60,006,143.72 |
| XingshengRealEstateManagement | Subsidiary | Realestatemanagementservice | 1,000,000.00 | 3,263,927.91 | 1,459,102.03 | 4,721,964.91 | 891,596.10 | 899,883.99 |
| ZhenjiangSiyang | Subsidiary | Manufacturingandmarketingofdieselenginesforships | 2,000,000.00 | 119,143,292.70 | 98,847,855.74 | 66,935,156.33 | 12,868,234.45 | 10,487,801.85 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
□Applicable√NotapplicableOtherinformationaboutprincipalsubsidiariesandjointstockcompanies:
InDecember2023,theCompanyacquired7.5%equityinterestsinZhenjiangSiyangheldbythreenaturalpersonshareholders,andnowtheCompanyholdsatotalof49%equityinterestsinZhenjiangSiyang,makingitthelargestshareholder.Othershareholdersaredispersed.TheCompanyappointedfouroutofthesevenmembersofZhenjiangSiyang'sBoardofDirectors,includingtheChairman.Therefore,theCompanyistheactualcontrollerofZhenjiangSiyang,whichconstitutestheconditionsfortheconsolidation.
XStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
XIProspects
1.DevelopmentstrategyoftheCompanyTheCompany’sdevelopmentstrategyistobaseonfarmmachinery,becomestrongerintheenginebusiness,exploremoremarketsanddevelopinascientificway.Thestate’spoliciesoncomprehensivelypromotingruralrevitalizationandacceleratingtobuildChinaintoanagriculturalpowerwillbringaboutsignificantandpositiveimpactsfortheindustry.TheCompanywillmakefulluseofthepolicy-baseddividendofstrongnationalsupportforagriculturalproductionanddevelopmentofagriculturalmachineryandcontinuetopromoteinnovativedevelopment,talentrecruitment,qualityimprovement,brandbuilding,andcapitalboosttoacceleratethetechnologicalupgradeoftraditionalpowerproducts,expandnewmarketsinnewfields,andalsotoachievediversifieddevelopmentoftheindustry.TheCompany’smaindevelopmentdirectionsareasfollows:
(1)AcceleratingtechnologicalupgradingandareaexpansionofexistingadvantageousproductsFirst,theCompanywillprioritizetheoptimizationandenhancementofitscoreproducts.ItwillfurtherrefineproductstocomplywiththeNationalEmissionStandardIVforNon-roadVehiclesbasedonmarketfeedback,therebybolsteringcompetitivenesswithinexistingapplicationdomains.Throughproductionandmanufacturing,supplychainmanagement,andservicecapacitybuilding,theCompanywillcomprehensivelyimprovethequalitylevelandserviceskillsfortheproductsoftheNationalEmissionStandardIVforNon-roadVehicles,soastomeetthemarketdemandforproductefficiency,emissionreduction,andreliability.Second,theCompanywillfocusonvalueextensionanddevelophigh-endproducts.
1)TheCompanywillcontinuouslypromotetheoptimizationofgeneratorsetproductsandnetworklayout,movetowardshigh-endandprofessionaldevelopmentinsegmentedfields,develophigh-endindustrialchains,andexpandtheapplicationofgeneratorsetsinmarketssuchasspecialvehicles,unmannedaerialvehicledefence,
parking,andcommunication.
2)Basedontheelectronic,networkedandintelligentcharacteristicsofthedevelopmentofagriculturalmachineryproducts,theCompanywillpromotetheapplicationofadvancedtechnologiessuchastheInternet,bigdata,artificialintelligenceandnewmaterialstoproductdevelopment,furtherimprovethedieselengines’functionsofintelligentcontrol,real-timemonitoringandbigdatacollectionandanalysis,acceleratetheR&Dofintelligentterminalsandhybridpower,andraisetheaddedvalueofproductstobettermeetuserdemands.Third,existingadvantageousproductswillbedevelopedintheterminaldirection.TheCompany'smainproductsaresmallandmedium-powerdieselenginesandgeneralgasolineengines.Themarketofsupportingfacilitiesismainlydistributedinnon-roadfieldssuchasagriculturalmachinery,plantprotectionmachinery,engineeringmachinery,andmarinemachinery.TheCompanyisincreasingitsresearchanddevelopmenteffortsinterminal-sidefieldssuchasgeneratorsets,outboardengines,coldchains,fishingboats,andirontowers,andincreasingitsmarketdevelopmentefforts.ThroughitssubsidiaryZhenjiangSiyang,theCompanywillcontinuetoimproveitsbusinessstructureandstrengthencooperationinthefieldofmarinemachinery,topromotelong-termdevelopment.Atthesametime,theresearchanddevelopmentprojectoftheoutboardenginesintheprojectofinnovationcapacitybuildingofthetechnologycentreintheprivateplacementraisedfundsinvestmentprojecthasbeensuccessfullycompleted,andthedevelopmentoftheoutboardenginepowerplatformforthe10-20horsepower,30-60horsepower,and70-90horsepower(80horsepower)hasbeencompletedinsteps.SomeproductshavepassedtheCCScertificationofChinaClassificationSociety,theEURCDcertification,andMEDcertification.Forthelow-poweroutboardengine,marketvalidationhasbeencompletedandasalessystemfordomesticandinternationalmarketshasbeenestablished.Forthehigh-powerdieselenginesforoutboardengines,theinstallationandperformancedebuggingoftheentiremachinehavebeencompleted,andreliabilitytestshavebeenconducted.TheCompanyfullyutilizesthecapitalplatformoflistedcompanies,andacceleratestheextensionoftheindustrialchainthroughjointventuresandmergersandacquisitions,tobuildnewcompetitiveadvantages.
(2)PromotingindustrialtransformationanddevelopmentinthedirectionofcombinationwithnewenergyWiththerapiddevelopmentofnewenergytechnology,traditionalpowerhasbeenimpactedinsomefields,posingathreatofindustrialsubstitutionforthedevelopmentofnewenergy.However,thedevelopmentopportunitiesoftraditionalpowerstillexistforalongtime.TheCompanyleveragesitsadvantagesinlightpower,expandsnewenergyproducts,andpromotestheresearchanddevelopmentofhybridpowerprojects.Theresearchanddevelopmentprojectfortheoil-electrichybridplatformintheprojectofinnovationcapacitybuildingoftechnologycentreintheprivateplacementraisedfundsinvestmentprojecthasbeencompleted.Theproductprototypeoftheprojecthasbeenbuilt,meetingtheadaptivechargingfunctionwithamaximumpowerof15kW,andachievingcertainresearchanddevelopmentresults.JiangsuHorizonNewEnergyTechnologyCo.,Ltd.,inwhichtheCompanyinvests,ismainlyengagedinlithiumbatterywet-processedseparatorprojectproductswithagooddevelopmentmomentum.Inthefuture,theCompanywillcontinuetoincreaseitsexplorationeffortsinnewpowerandenergyfieldssuchashydrogenfuelandhybridpower,andstrengthencooperationandpenetrationwithrelevantgreenindustries,topromotetheexpansionofenterprisesintonewfields.
2.Operationplanfortheyear2024TheCompanywillconsolidatethetraditionalmarketofagriculturalmachinery,exploretheemergingareaofpower,raisequalitytocreatefineproductswithcoretechnologies,highlightefficiencybyintegratingresources,stimulatevitalitybydeepeningreform,andleveragecapitaltopromotedevelopment.In2024,salesrevenueisexpectedtobeRMB2.3billion,withrevenueofUSD58millionthroughexport.TheaboveoperationplandoesnotrepresenttheprofitforecastofY2024bythelistedcompany,andwhethercanberealizeddependsonvariousfactorsonthechangesofmarketconditionsandtheeffortlevelofthemanagement
team.Thereisalotofuncertainty,andinvestorsshouldpayspecialattentiononit.
3.PossiblefuturerisksandcountermeasuresoftheCompany
(1)MarketriskWiththeupgradingofemissionstandardsinthenon-roadfieldandtheadvancementofmarketdemand,competitionintheexistingmarkethasintensified,andindustryconcentrationhasincreased.Currently,theindustryhasenteredaperiodofin-depthadjustmentsledbyoptimizationandupgrading,andmostenterpriseshavecontinuouslystrengthenedproductdevelopmentandoptimization,andincreasedmarketmaintenanceanddevelopmenteffortsinresponsetomarketdemand.Meanwhile,theproductsfortheNationalEmissionStandardIVforNon-roadVehicleshavefullyenteredthemarket,furtherintensifyingindustrycompetition.Countermeasures:First,theCompanywillkeepupwithmarkettrends,strengthenproductperformanceoptimization,qualityimprovement,andsupplyguaranteetomeetmarketdemand.Second,theCompanywillstabilizethetraditionalapplicationfield,furtherbreakthroughinadvantageousfields,andextendproductlines,expandingtheapplicationofproductsinthehigh-endindustrialchainmarket.Third,theCompanywillenhanceinnovationawareness,activelypromotetheapplicationofadvancedtechnologiessuchastheInternet,bigdata,artificialintelligenceandnewmaterials,furtherimprovetheintelligenceandspecializationofproducts,andacceleratetheresearchanddevelopmentofintelligentterminalsandhybridpower,tobuildnewcompetitiveadvantages.
(2)IndustrialriskInrecentyears,influencedbythedevelopmentofnewenergyapplicationtechnologyandrelevantpolicyincentives,variousenterpriseshaveacceleratedtheirresearch,application,andmarketapplicationinthefieldofnewenergypower,sothemarketshareofapplicationfieldsrelatedtodieselengineshasbeenaffectedtoacertainextent.Atpresent,newenergypowerstillfaceschallengessuchashighcostsandcomplexoperatingenvironmentsinthefieldofagriculturalmachinery.However,withthecontinuousbreakthroughofnewenergytechnology,someapplicationscenariosofnon-roaddieselenginesmaybereplacedbynewenergypower.Countermeasures:First,theCompanywillacceleratetheoptimizationandupgradingofproductperformance,developefficientandenvironmentally-friendlyproducts,andcomplywithnationalenergyconservationandemissionreductionpolicies,toenhanceproductcompetitiveness.Second,theCompanywillacceleratetheresearchandanalysisofnewenergypowerandexpandnewenergyhybridproducts,toprepareforsustainabledevelopment.
(3)ForeigntraderiskInrecentyears,theinternationalsituationhasbecomeincreasinglyturbulent,andtheglobalpoliticalandeconomicenvironmenthasbecomeincreasinglycomplex,causingvaryingdegreesofimpactonforeigntradepoliciesofvariouscountries.Iftherearesignificantchangesinthepoliticalstabilityandforeigntradepoliciesofforeignmarkets,itwillhaveasignificantimpactonproductexportsales.Countermeasures:First,theCompanywillpromoteclosecollaborationamongrelevantdepartments,andenhanceoverallforeigntradeefficiencythroughcomplementaryresources,information,andproducts.Second,theCompanywillinnovateandtransformthetechnologicalrouteincombinationwithoverseasmarketdemand,andpromotemorehigh-performanceproductstooverseasmarkets.Third,theCompanywillacceleratetheimplementationinthetrainingofoverseasservicepersonnel,servicecapacitybuilding,overseascommissionedstationconstruction,andthesupportingenterpriseoverseasmarketchannels,soastoestablishacompletesalesservicenetworkintheexportmarket.
(4)ForeignexchangeriskInrecentyears,thechallengesanduncertaintiesintheinternationalpoliticalandeconomicenvironmenthaveincreased,leadingtoanincreaseinexchangeratefluctuationfactors.TheCompany'sproductsareexported
overseas,andexchangeratefluctuationsmayhaveadverseeffectsonthesalesoftheCompany'sproducts.Countermeasures:First,theCompanywillcloselymonitorexchangeratefluctuations,chooseappropriatecurrenciesforpricingandsettlement,andhedgeagainstrisksthroughhedgingandothermeasures.Second,theCompanywillreducerisksbychangingpaymentmethodsandpurchasingexportcreditinsurance.Third,theCompanywilladjustproductpricesandpaymenttermsinatimelymannerinresponsetofluctuationsinexchangeratesandmaterialprices.Fourth,theCompanywillenhancethecompetitivenessofproductsandservicestocopewithexchangeratefluctuations,toreducetheimpactofexchangeratefluctuationsontheCompany'sproductsales.
(5)RiskoffluctuationsinrawmaterialpricesThemarketpricesofrawmaterialsoftenfluctuate,influencedbyfactorssuchasmacroeconomicenvironment,productioncapacity,andchangesindemand.ThepricefluctuationsofrawmaterialssuchassteelandpigironwillbringpressuretotheCompany'smanufacturingcostsandhaveacertainimpactontheCompany'sprofits.Countermeasures:TheCompanywilloptimizethesupplysystemandstrengthensupplychainmanagementthroughmeasuressuchastechnologicalimprovementandstrengtheningcostmanagement;theCompanywilltimelytrackmarkettrendsandstrengtheninventorymanagement,toalleviatetheadverseeffectsofrawmaterialpricefluctuationsontheCompany.
(6)TalentriskTalentisoneofthekeyfactorsforthedevelopmentoftheCompany.TheCompanyneedstalenttohelpimproveoperationalefficiencyandaccelerateitsdevelopmentandbuilding.IftheCompany'sremunerationpoliciesandtalentincentiveandconstraintpoliciesareinadequate,itwillleadtoashortageofhigh-endleadingmanagementandtechnicaltalents,andashortageofreservetalents,whichwillaffectresearchandinnovationcapabilitiesandcorecompetitiveness.Countermeasures:First,basedontheCompany'sdevelopmentplanandactualneedsofbusinessmanagement,theCompanywillcontinuouslyimprovethetalentintroductionmechanismandtalentcultivationsystem,optimizepersonnelstructure,andcomprehensivelyenhancetheoverallqualityoftheemployeeteam.Second,theCompanywillcontinuouslyimprovetheprofessionalabilitiesofemployeesthroughsystematictrainingandothermeasuresbasedonbusinessdevelopmentneeds.Third,theCompanywillimprovetalentincentivemethodsandperformanceappraisalsystems,tocomprehensivelyenhancethecontributionrateofhumanresources.
XIICommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviewsduringtheReportingPeriod
√Applicable□Notapplicable
| Dateofvisit | Placeofvisit | Wayofvisit | Typeofvisitor | Visitor | Contentsandmaterialsprovided | Indextomaininquiryinformation |
| 20April2023 | Onlinemeeting | Onlineexchange | Other | Investorsandthepublic | TheCompany’sproductionandoperation,developmentandconstruction,investmentandwealthmanagement,etc. | Informationon000570Changchai’sResultsPresentationandRoadshowonwww.cninfo.com.cndated20April2023 |
XIIIImplementationofthe“QualityandEarningsDualImprovement”ActionPlanIndicatewhethertheCompanyhasdisclosedthe“QualityandEarningsDualImprovement”ActionPlan.
□Yes√No
PartIVCorporateGovernance
IGeneralInformationofCorporateGovernanceIntheReportingPeriod,theCompanywasstrictlyinlinewithlaws,statutessuchasCompanyLaw,SecuritiesLaws,CodeofCorporateGovernanceofListedCompanies,GuideOpiniononEstablishmentofIndependentDirectorSystembyListedCompaniesandGuidelinesonInternalControlsofListedCompaniesandsoon,continuouslyperfectedcorporategovernance,establishedandaccomplishedinternalmanagementandcontrolsystem,consistentlyanddeeplyputforwardcorporategovernanceactivities,soastofurthernormalizedoperationoftheCompany,raisingcorporategovernancelevel,layingaguardforsteadyandhealthydevelopmentoftheCompany,protectlegalrightsandinterestsoftheCompanyandallshareholders.TheCompanypromulgatedorrevisedaseriesofinternalcontrolsystemthroughallaspectsofnormaloperationandmanagementactivitiesinaccordancewitheachnationallawsandregulations,characteristicsoftheindustry,operationandself-managingbusiness,andimproveditcontinuously,andfinallyformedanormativemanagementsystem.Andformulatedaseriesofmanagementsystem,processandstandardcoveredeachoperationlinkandlevelofthefinancialassetscontrol,humanresourcesmanagement,qualityenvironmentmanagementandinternalauditsupervisoretc.,whichensuredalltheworkhadrulestofollow.Indicatebytickmarketwhetherthereisanymaterialincompliancewiththeapplicablelaws,administrativeregulationsandregulationsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.
IITheCompany’sIndependencefromItsControllingShareholderandActualControllerinAsset,Personnel,FinancialAffairs,OrganizationandBusiness
TheCompanywasindependentfromthecontrollingshareholderChangzhouInvestmentGroupCo.,Ltdintermsofassets,business,personnel,organizationandfinancing,withindependent&completebusinessandcapabilitytooperateindependently.
1.Assets:ThepropertyrightsrelationshipbetweentheCompanyandthecontrollingshareholderisclear,assetsareclearlydefined,andtherearenofunds,assetsandotherresourcesbeingoccupiedorusedwithoutcompensationbetweenthem.
2.Personnel:TheCompanyandthecontrollingshareholderareindependentofeachotherintermsoflabor,personnelandsalarymanagement,andeachhasanindependentmanagementorganization,asoundmanagementpolicy,andanindependentpersonnelappraisalandassessmentsystem.
3.Finance:TheCompanyhassetupaspecialfinancedepartment,establishedanindependentaccountingsystemandfinancialmanagementpolicy,openedanindependentbankaccount,andimplementedindependentaccountingandindependenttaxpayments.ThereisnointerferenceinthefinancialactivitiesoftheCompanybythecontrollingshareholder.
4.Institution:TheCompanyhasacompleteandindependentcorporategovernancestructureandhasestablishedasoundorganizationalsystemthatmeetsitsownproductionandoperationneeds,whichoperatesindependentlyandwell,andthereisnosubordinaterelationshipwiththefunctionaldepartmentsofthecontrollingshareholder.
5.Business:TheCompanyhasanindependentandcompletebusinesssystemwithindependentandautonomousproductionandoperationalcapability.TheCompanyconductsrelatedtransactionsreasonablyontheprincipleofindependence.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Resolution |
| The2022AnnualGeneralMeeting | AnnualGeneralMeeting | 32.52% | 18May2023 | 19May2023 | Allproposalswereapproved.SeeAnnouncementNo.2023-020onResolutionsofthe2022AnnualGeneralMeeting. |
| The1stExtraordinaryGeneralMeetingof2023 | ExtraordinaryGeneralMeeting | 32.33% | 12June2023 | 13June2023 | Allproposalswereapproved.SeeAnnouncementNo.2023-035onResolutionsofthe1stExtraordinaryGeneralMeetingof2023. |
| The2ndExtraordinaryGeneralMeetingof2023 | ExtraordinaryGeneralMeeting | 32.33% | 10August2023 | 11August2023 | Allproposalswereapproved.SeeAnnouncementNo.2023-054onResolutionsofthe2ndExtraordinaryGeneralMeetingof2023. |
| The3rdExtraordinaryGeneralMeetingof2023 | ExtraordinaryGeneralMeeting | 32.29% | 14November2023 | 15November2023 | Allproposalswereapproved.SeeAnnouncementNo.2023-072onResolutionsofthe3rdExtraordinaryGeneralMeetingof2023. |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√Notapplicable
VDirectors,SupervisorsandSeniorManagement
1.GeneralInformation
| Name | Gender | Age | Officetitle | Incumbent/Former | Startoftenure | Endoftenure | Endingshareholding(share) |
| Li | Male | 42 | Chairmanof | Incumbent | 12June2023 | Ongoing | 0 |
| Desen | theBoard | ||||||
| ZhangXin | Male | 57 | ViceChairmanoftheBoard | Incumbent | 12June2023 | Ongoing | 0 |
| XieGuozhong | Male | 54 | Director | Incumbent | 12June2023 | Ongoing | 0 |
| GeneralManager | |||||||
| TanJie | Female | 44 | Director | Incumbent | 12June2023 | Ongoing | 0 |
| JiangHe | Male | 51 | Director | Incumbent | 16April2020 | Ongoing | 0 |
| ChiefAccountant | |||||||
| YangFeng | Male | 51 | Director | Incumbent | 16April2020 | Ongoing | 0 |
| WangMancang | Male | 60 | Independentdirector | Incumbent | 16April2020 | Ongoing | 0 |
| ZhangYan | Female | 53 | Independentdirector | Incumbent | 16April2020 | Ongoing | 0 |
| JiaBin | Male | 45 | Independentdirector | Incumbent | 12June2023 | Ongoing | 0 |
| NiMingliang | Male | 56 | ChairmanoftheSupervisoryCommittee | Incumbent | 12June2023 | Ongoing | 0 |
| ShiXingyu | Female | 43 | Supervisor | Incumbent | 12June2023 | Ongoing | 0 |
| LuZhonggui | Male | 56 | Supervisor | Incumbent | 18October2016 | Ongoing | 0 |
| LiuYi | Male | 54 | Supervisor | Incumbent | 18October2016 | Ongoing | 0 |
| LinWei | Male | 41 | Supervisor | Incumbent | 12June2023 | Ongoing | 0 |
| SunJianzhong | Male | 51 | Vice-generalManager | Incumbent | 16April2020 | Ongoing | 0 |
| HeJianjiang | Male | 44 | Vice-generalManager | Incumbent | 13December2021 | Ongoing | 0 |
| SecretaryoftheBoard | 18October2016 | ||||||
| WangJing | Male | 36 | Vice-generalManager | Incumbent | 12June2023 | Ongoing | 0 |
| WangWeifen | Male | 52 | ChiefEngineer | Incumbent | 12June2023 | Ongoing | 0 |
| g | |||||||
| ShiXinkun | Male | 59 | ChairmanoftheBoard | Former | 18October2016 | 12June2023 | 0 |
| ZhangXin | Male | 56 | GeneralManager | Former | 18October2016 | 12June2023 | 0 |
| LinTian | Male | 60 | Director | Former | 17December2018 | 12June2023 | 0 |
| XuYi | Male | 59 | Director | Former | 16April2020 | 12June2023 | 0 |
| Vice-generalManager | |||||||
| XingMin | Male | 69 | Independentdirector | Former | 16April2020 | 12June2023 | 0 |
| YinLihou | Male | 59 | Vice-generalManager | Former | 18October2016 | 12June2023 | 0 |
| XieGuozhong | Male | 54 | Vice-generalManager | Former | 16April2020 | 12June2023 | 0 |
| HeJianguang | Male | 59 | ChairmanoftheSupervisoryCommittee | Former | 17December2020 | 12June2023 | 0 |
| ChenLijia | Female | 40 | Supervisor | Former | 16April2020 | 12June2023 | 0 |
| GeJiangli | Female | 53 | Supervisor | Former | 16April2020 | 12June2023 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 0 |
Indicatewhetheranydirector,supervisororseniormanagementresignedbeforetheexpiryoftheirtenureduringtheReportingPeriod.
□Yes√NoChangeofdirectors,supervisorsandseniormanagement:
√Applicable□Notapplicable
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| LiDesen | ChairmanoftheBoard | Elected | 12June2023 | Generalelection |
| ZhangXin | ViceChairmanoftheBoard | Elected | 12June2023 | Generalelection |
| XieGuozhong | Director | Elected | 12June2023 | Generalelection |
| GeneralManager | Appointed | AppointedbytheBoard | ||
| TanJie | Director | Elected | 12June2023 | Generalelection |
| JiaBin | Independentdirector | Elected | 12June2023 | Generalelection |
| NiMingliang | ChairmanoftheSupervisoryCommittee | Elected | 12June2023 | Generalelection |
| ShiXingyu | Supervisor | Elected | 12June2023 | Generalelection |
| LinWei | Supervisor | Elected | 12June2023 | Generalelection |
| WangJing | Vice-generalManager | Appointed | 12June2023 | AppointedbytheBoard |
| WangWeifeng | ChiefEngineer | Appointed | 12June2023 | AppointedbytheBoard |
| ShiXinkun | ChairmanoftheBoard | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| LinTian | Director | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| XuYi | Director | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| Vice-generalManager | ||||
| XingMin | Independentdirector | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| ZhangXin | GeneralManager | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| YinLihou | Vice-generalManager | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| XieGuozhong | Vice-generalManager | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| HeJianguang | ChairmanoftheSupervisoryCommittee | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| ChenLijia | Supervisor | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
| GeJiangli | Supervisor | Departureonexpirationoftermofoffice | 12June2023 | Departureonexpirationoftermofoffice |
2.BiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
LiDesen:HesuccessivelytookthepostsofDirectoroftheOfficeoftheQishuyanRailTransitIndustrialParkManagementCommittee,DeputySecretaryoftheQishuyanStreetPartyWorkingCommitteeanditsOfficeDirector,DirectoroftheFinancialDevelopmentBureauintheChangzhouEconomicDevelopmentZone,Vice
GeneralManagerandPartyMemberoftheLocalFinancialSupervisionandAdministrationBureauinChangzhou,StandingCommitteeMember,MinisteroftheUnitedFrontWorkDepartmentinChangzhou,DeputyDistrictMayorandPartyMemberoftheWujinDistrictCommitteeinChangzhou,andDeputySecretaryoftheDistrictPoliticalConsultativeConferencePartyGroupinChangzhou.Now,heactsasChairmanandPartyCommitteeSecretaryofChangzhouInvestmentGroupCo.,Ltd.,aswellasPartyCommitteeSecretaryandChairmanoftheCompany.ZhangXin:HesuccessivelytookthepostsofSalesManager,GeneralManagerAssistant,DeputyGeneralManager,andGeneralManagerintheCompany.Now,heactsasViceChairmanoftheCompany.XieGuozhong:HesuccessivelytookthepostsofSalesManager,GeneralManagerAssistant,andDeputyGeneralManageroftheCompany.Now,heactsasDeputyPartyCommitteeSecretary,DirectorandGeneralManageroftheCompany,aswellasSupervisorofBeiqiFotonMotorCo.,Ltd.TanJie:ShesuccessivelytookthepostsofDeputyDirectoroftheAccountingDepartmentandDeputyDirectorofthePersonnelandEducationDepartmentoftheChangzhouMunicipalBureauofFinance,DeputySecretaryandYouthLeagueSecretaryoftheChangzhouInstituteofCertifiedPublicAccountants,DirectoroftheComprehensiveDepartment,AgricultureDepartment,AgricultureandRuralDepartment,andAdministrativeandLegalDepartmentoftheChangzhouMunicipalBureauofFinance,andPresidentAssistantofChangzhouInvestmentGroupCo.,Ltd.Now,sheactsasMemberofthePartyCommitteeandVicePresidentofChangzhouInvestmentGroupCo.,Ltd.,aswellasDirectoroftheCompany.JiangHe:HesuccessivelytookthepostsofAccountant,ChiefAssistant,andDeputyChiefoftheFinanceDepartmentoftheCompany.Now,heactsasDirector,ChiefAccountant,andChiefoftheFinanceDepartmentoftheCompany.YangFeng:HesuccessivelyservedasBusinessManageroftheShanghaiInvestmentBankingDepartmentofChinaEconomicDevelopmentTrustandInvestmentCo.,Ltd.,BusinessDirectoroftheInvestmentBankingDepartmentofOrientSecuritiesCo.,Ltd.,GeneralManageroftheInvestmentBankingDepartmentandtheOperationManagementHeadquarters,aswellasChairmanAssistantofAJSecuritiesCo.,Ltd.,ExecutiveGeneralManageroftheEnterpriseDevelopmentandFinancingDepartmentandtheInvestmentBankingDepartmentofCITICSecuritiesCo.,Ltd.,andManagingDirectorofDaiwaSecuritiesChinaCo.,Ltd.Now,heactsasExecutiveDirectorofDeXinInvestmentManageCo.,Limited,IndependentDirectorofShanghaiKindlyEnterpriseDevelopmentGroupCo.,Ltd.,andDirectoroftheCompany.WangMancang:HesuccessivelyservedasateacherandlecturerintheDepartmentofManagement,aswellasafinanciallecturerandprofessorintheDepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity.Now,heactsasDirectoroftheDepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity,ChairmanofShaanxiSecuritiesResearchSociety,aswellasIndependentDirectorofFocuslightTechnologiesInc.,CcoopGroupCo.,Ltd.,andXi'anWonderEnergyChemicalCo.,Ltd.,DirectorofChang'anInternationalTrustCo.,Ltd.,Xi'anGuolianQualityTestingTechnologyCo.,Ltd.andtheCompany.ZhangYan:ShesuccessivelyservedasChiefAccountantofChangzhouZhengdaCertifiedPublicAccountantsCo.,Ltd.,andExecutiveDeputyChiefAccountantofJiangsuGongzhengCertifiedPublicAccountantsCo.,Ltd.Now,sheactsasAssociateProfessorofManagementSchoolofJiangsuUniversityofTechnology,DirectorofChangzhouCommunicationsIndustryGroupCo.,Ltd.,IndependentDirectorofJiangsuTianmuLakeTourismCo.,Ltd.,IndependentNon-executiveDirectorofS-EnjoyServiceGroupCo.,Limited,andIndependentDirectoroftheCompany.JiaBin:HesuccessivelyservedasDeputyDirectoroftheFirstResearchOfficeofTianjinInternalCombustionEngineResearchInstitute,AssistantSecretaryGeneralofChinaInternalCombustionEngineIndustryAssociation
(CICEIA),andSecretaryGeneralofSmallGasolineEngineBranchofCICEIA.Now,heactsasDirectoroftheFirstResearchOfficeofTianjinInternalCombustionEngineResearchInstitute,DeputySecretaryGeneralofCICEIA,IndependentDirectorofLutianMachineryCo.,Ltd.andSuzhouParsunPowerMachineryCo.,Ltd.,DirectorofTianjinTianboKedaTechnologyCo.,Ltd.,andIndependentDirectoroftheCompany.NiMingliang:HesuccessivelyservedasStaffMemberandViceChairmanoftheLabourUnionoftheCompany.Now,heactsasDeputyPartyCommitteeSecretary,ChairmanofBoardofSupervisors,SecretaryofthePartyDisciplineCommittee,ChairmanoftheLabourUnionoftheCompany,ChairmanofXingshengRealEstateManagement,andDirectorofHorizonInvestment.ShiXingyu:HesuccessivelyservedasStaffMember,SectionChief,andDeputyGeneralManageroftheFinanceDepartmentofChangzhouInvestmentGroupCo.,Ltd.Now,heactsasGeneralManageroftheFinanceDepartmentofChangzhouInvestmentGroupCo.,Ltd.,DirectorofDonghaiSecuritiesCo.,Ltd.,andSupervisoroftheCompany.LuZhonggui:HesuccessivelyservedasStaffMemberofthePersonnelDepartment,Full-timeDisciplinaryInspectorofthePartyDisciplineCommittee,andDeputySecretaryofOrganPartyGeneralBranch.Now,heactsasSecretaryofOrganPartyGeneralBranch,ChiefofPoliticalDepartment,OfficeDirector,EmployeeSupervisoroftheCompany,andDirectorofXingshengRealEstateManagement.LiuYi:HesuccessivelytookthepostsofChiefAssistantofEnterpriseManagementDepartment,DeputyChiefoftheFinanceDepartmentandtheAuditDepartmentoftheCompany.Now,heactsasChiefofAuditDepartmentandEmployeeSupervisoroftheCompany,DirectorofZhenjiangSiyang,SupervisorofChangchaiWanzhou,ChangchaiBenniu,HorizonInvestment,HorizonAgriculturalEquipment,ChangchaiRobin,ChangchaiMachinery,andXingshengRealEstateManagement.LinWei:HesuccessivelytookthepostsofStaffMember,DeputyChief,ChiefoftheEnterpriseManagementDepartmentoftheCompany,andDeputyGeneralManagerofChangchaiMachinery.Now,heactsasSupervisorandChiefoftheHumanResourcesDepartmentoftheCompany.SunJianzhong:HesuccessivelytookthepostsofDirectoroftheTechnologyCentreandAssistantGeneralManageroftheCompany.Now,heactsasDeputyGeneralManageroftheCompanyandGeneralManagerofChangchaiMachinery.HeJianjiang:HesuccessivelytookthepostsofStaffMember,ChiefAssistant,andDeputyChiefoftheInvestmentandDevelopmentDepartment,andSecuritiesRepresentativeoftheCompany.Now,heactsasDeputyGeneralManager,SecretaryoftheBoard,andChiefoftheInvestmentandDevelopmentDepartmentoftheCompany,aswellasChairmanoftheBoard&GMofHorizonInvestment,DirectorofHorizonAgriculturalEquipment,ChairmanofZhenjiangSiyang,DirectorofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,andSupervisorofDonghaiSecuritiesCo.,Ltd.WangJing:HesuccessivelytookthepostsofForeignTradeSalespersonintheOverseasBusinessDepartmentoftheCompany,Technicianinthesingle-cylinderengineplant,DeputyDirectoroftheworkshop,AssistanttothePlantDirector,DeputyDirectorofthePlant,SecretaryoftheSingle-cylinderEnginePlantPartyBranch,andAssistantGeneralManageroftheCompany.Now,heactsasDeputyGeneralManageroftheCompany.WangWeifeng:HesuccessivelytookthepostsofDesignerintheDevelopmentDepartment,Designerinthetechnologycentre,andDeputyChiefEngineeroftheCompany.Now,heactsasChiefEngineeroftheCompany.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
| LiDesen | ChangzhouInvestmentGroupCo.,Ltd. | SecretaryofthePartyCommittee,ChairmanoftheBoard | January2024 | Yes | |
| TanJie | ChangzhouInvestmentGroupCo.,Ltd. | MemberofthePartyCommittee,Director,VicePresident | April2023 | Yes | |
| ShiXingyu | ChangzhouInvestmentGroupCo.,Ltd. | GeneralManagerofFinanceDepartment | November2021 | Yes | |
| Notes | N/A | ||||
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| XieGuozhong | BeiqiFotonMotorCo.,Ltd. | Supervisor | 15November2022 | No | |
| HeJianjiang | DonghaiSecuritiesCo.,Ltd. | Supervisor | 18January2023 | 17January2026 | No |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | Director | 28July2023 | |||
| YangFeng | DeXinInvestmentManageCo.,Limited | ExecutiveDirector | 1June2022 | No | |
| ShanghaiKindlyEnterpriseDevelopmentGroupCo.,Ltd. | IndependentDirector | 17April2023 | |||
| ShiXingyu | DonghaiSecuritiesCo.,Ltd. | Director | 20May2021 | 17January2026 | No |
| WangMancang | DepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity | HeadofDepartment, | 1September2006 | Yes |
| Professor | |||||
| ShaanxiSecuritiesResearchSociety | Chairman | 1October2017 | |||
| FocuslightTechnologiesInc. | IndependentDirector | 2May2019 | Yes | ||
| CcoopGroupCo.,Ltd. | IndependentDirector | 18September2020 | Yes | ||
| ShaanxiConstructionMachineryCo.,Ltd. | IndependentDirector | 16November2018 | 5February2024 | Yes | |
| Xi'anWonderEnergyChemicalCo.,Ltd. | IndependentDirector | 24June2020 | 13September2025 | Yes | |
| Chang'anInternationalTrustCo.,Ltd. | Director | 1September2018 | |||
| Xi'anGuolianQualityTestingTechnologyCo.,Ltd. | Director | 1June2020 | |||
| JiaBin | ChinaInternalCombustionEngineIndustryAssociation | Vice-Secretary-General | 1January2018 | No | |
| TianjinInternalCombustionEngineResearchInstitute | DirectoroftheFirstResearchOffice | 1March2009 | Yes | ||
| LutianMachineryCo.,Ltd. | IndependentDirector | 31December2019 | 5January2026 | Yes | |
| SuzhouParsunPowerMachineryCo.,Ltd. | IndependentDirector | 31July2021 | Yes | ||
| TianjinTianboKedaTechnologyCo.,Ltd. | Director | 1August2020 | No | ||
| ZhangYan | JiangsuUniversityofTechnology | Associateprofessor | 1August2008 | Yes | |
| JiangsuTianmuLakeTourismCo.,Ltd. | IndependentDirector | 8February2021 | 6November2026 | Yes | |
| WuxiSAHATElectricTechnologyCo.,Ltd. | IndependentDirector | 2November2020 | 25December2023 | Yes | |
| S-EnjoyServiceGroupCo.,Limited | Independentnon-execu | 20October2018 | Yes |
| tiveDirector | |||||
| ChangzhouCommunicationsIndustryGroupCo.,Ltd. | Director | 14April2022 | 13April2025 | Yes | |
| Notes | None | ||||
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√Notapplicable
3.RemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
In2023,themonthlysalariesofdirectors,supervisorsandseniorexecutivesintheCompanywereinlinewiththestipulationsofrelevantsalarymanagementandgradestandards,andthebenefitsoftheCompanyandassessmentresults.TheincumbentdirectorLiDesen,TanJie,theincumbentsupervisorShiXingyuandtheformerdirctorLinTian,theformersupervisorHeJianguangobtainedsalariesinshareholders'entities.TheformersupervisorChenLijiaobtainedsalariesinbothshareholders’entitiesandotherentities.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
| Name | Gender | Age | Officetitle | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
| LiDesen | Male | 42 | ChairmanoftheBoard | Incumbent | 0.00 | Yes |
| ZhangXin | Male | 57 | ViceChairmanoftheBoard | Incumbent | 85.47 | No |
| XieGuozhong | Male | 54 | Director | Incumbent | 81.91 | No |
| GeneralManager | ||||||
| TanJie | Female | 44 | Director | Incumbent | 0.00 | Yes |
| JiangHe | Male | 51 | Director | Incumbent | 74.62 | No |
| ChiefAccountant | ||||||
| YangFeng | Male | 51 | Director | Incumbent | 0.00 | No |
| WangMancang | Male | 60 | Independentdirector | Incumbent | 10.00 | No |
| ZhangYan | Female | 53 | Independentdirector | Incumbent | 10.00 | No |
| JiaBin | male | 45 | Independentdirector | Incumbent | 5.00 | No |
| NiMingliang | Male | 56 | ChairmanoftheSupervisoryCommittee | Incumbent | 76.15 | No |
| ShiXingyu | Female | 43 | Supervisor | Incumbent | 0.00 | Yes |
| LuZhonggui | Male | 56 | Supervisor | Incumbent | 23.18 | No |
| LiuYi | Male | 54 | Supervisor | Incumbent | 25.15 | No |
| LinWei | Male | 41 | Supervisor | Incumbent | 20.69 | No |
| SunJianzhong | male | 51 | Vice-generalManager | Incumbent | 75.38 | No |
| HeJianjiang | Male | 44 | Vice-generalManager | Incumbent | 74.62 | No |
| SecretaryoftheBoard | ||||||
| WangJing | Male | 36 | Vice-generalManager | Incumbent | 65.61 | No |
| WangWeifeng | Male | 52 | ChiefEngineer | Incumbent | 61.69 | No |
| ShiXinkun | Male | 60 | ChairmanoftheBoard | Former | 42.74 | No |
| LinTian | Male | 61 | Director | Former | 0.00 | Yes |
| XuYi | Male | 60 | Director | Former | 71.94 | No |
| Vice-generalManager | ||||||
| XingMin | Male | 70 | Independentdirector | Former | 5.00 | No |
| HeJianguang | Male | 60 | ChairmanoftheSupervisoryCommittee | Former | 0.00 | Yes |
| ChenLijia | Female | 41 | Supervisor | Former | 0.00 | Yes |
| GeJiangli | Female | 54 | Supervisor | Former | 22.87 | No |
| YinLihou | Male | 60 | Vice-generalManager | Former | 71.94 | No |
| Total | -- | -- | -- | -- | 903.96 | -- |
VIPerformanceofDutybyDirectorsintheReportingPeriod
1.BoardMeetingsConvenedintheReportingPeriod
| Meeting | Dateofmeeting | Disclosuredate | Resolution |
| The15thMeetingofthe9thBoardofDirectors | 13January2023 | / | ThemeetingdeliberatedonandapprovedtheReportontheWorkoftheGeneralManagerfortheYear2022,theBusinessPolicyObjectivesoftheCompanyfortheYear2023,theResultsofthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2022,theProposalonthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2023,andtheProposalonApplicationforBankCreditLinefortheYear2023 |
| The16thMeetingofthe9thBoardofDirectors | 10April2023 | 12April2023 | ThemeetingdeliberatedonandapprovedtheAnnualReportfor2022andItsSummary,theAnnualWorkReportoftheBoardofDirectorsfor2022,PlanoftheProfitDistributionandConversionofSurplusReservesintoShareCapitalfor2022,RewardsPlanforShareholdersinNextThreeYears(2023-2025),ProposalonProvisionofReservesforCreditImpairmentandAssetImpairment,ProposalonSubsidiaries'PlanningtoSellPartoftheTradingFinancialAssets,SpecialReportontheDepositandUseofRaisedFundsfor2022,AnnualSelf-EvaluationReportonInternalControlfor2022,and2022SocialResponsibilityReport |
| The1stExtraordinaryMeetingoftheBoardofDirectorsin2023 | 26April2023 | 28April2023 | ThemeetingdeliberatedonandapprovedtheReportfortheFirstQuarterof2023andtheProposalonConveningtheAnnualGeneralMeetingoftheCompanyfor2022 |
| The17thMeetingofthe9thBoardofDirectors | 25May2023 | 26May2023 | ThemeetingdeliberatedonandapprovedtheProposalonSigningtheWuxingBranch'sAgreementonHousingExpropriationonChangzhouState-ownedLandandCompensation,ProposalonAmendingtheArticlesofAssociationanditsAppendix,ProposalontheElectionoftheBoardofDirectorsandNominationofNon-independentDirectorsfortheTenthBoardofDirectors,ProposalontheElectionoftheBoardofDirectorsandNominationofIndependentDirectorsfortheTenthBoardofDirectors,andProposalonConveningtheFirstExtraordinaryGeneralMeetingin2023 |
| The1stMeetingofthe10thBoardofDirectors | 12June2023 | 13June2023 | ThemeetingdeliberatedonandapprovedtheProposalonElectingtheChairmanoftheCompany,ProposalonElectionofViceChairmanoftheCompany,ProposalonAppointingtheGeneralManageroftheCompany,ProposalonAppointingtheDeputyGeneralManageroftheCompany,ProposalonAppointingtheChiefAccountantoftheCompany,ProposalonAppointingtheChiefEngineeroftheCompany,ProposalonAppointing |
| BoardSecretaryoftheCompany,ProposalonElectionofMembersoftheRemunerationandEvaluationCommitteeoftheBoardofDirectorsoftheCompany,ProposalonElectionofMembersoftheAuditCommitteeoftheBoardofDirectorsoftheCompany,andProposalonElectionofMembersoftheStrategyCommitteeoftheBoardofDirectorsoftheCompany | |||
| The2ndExtraordinaryMeetingoftheBoardofDirectorsin2023 | 10July2023 | 11July2023 | ThemeetingdeliberatedonandapprovedtheProposalonUsingIdleFundstoPurchaseWealthManagementProducts |
| The3rdExtraordinaryMeetingoftheBoardofDirectorsin2023 | 25July2023 | 26July2023 | ThemeetingdeliberatedonandapprovedtheProposalonChangingtheLegalRepresentativeoftheCompanyandAmendingtheArticlesofAssociationandRulesofProcedureoftheBoardofDirectors,ProposalontheRe-appointmentoftheFinancialAuditInstitutionfor2023andItsAuditExpenses,ProposalontheRe-appointmentoftheInternalControlAuditInstitutionfor2023andItsAuditExpenses,andProposalonConveningtheSecondExtraordinaryGeneralMeetingin2023 |
| The2ndMeetingofthe10thBoardofDirectors | 22August2023 | 24August2023 | ThemeetingdeliberatedonandapprovedtheSemi-annualReportfor2023,ProposalonProvisionofReservesforCreditImpairmentandAssetImpairment,andSpecialReportontheDepositandUseofRaisedFundsfortheHalfYearof2023 |
| The3rdMeetingofthe10thBoardofDirectors | 27October2023 | 28October2023 | ThemeetingdeliberatedonandapprovedtheReportoftheThirdQuarterof2023,ProposalontheCompletionoftheProjectofInnovationCapacityBuildingoftheTechnologyCentreinPrivatePlacementRaisedFundsInvestmentProjectandPermanentSupplementofSurplusRaisedFundstoWorkingCapital,ProposalonAmendingtheArticlesofAssociationoftheCompany,ProposalonAmendingtheRulesofProcedureoftheBoardofDirectors,ProposalonAmendingtheIndependentDirectorSystem,ProposalonAmendingtheImplementationRulesoftheAuditCommitteeoftheBoardofDirectors,ProposalonAmendingtheImplementationRulesoftheRemunerationandEvaluationCommitteeoftheBoardofDirectors,ProposalonAmendingtheRulesofProcedureoftheStrategicDevelopmentCommitteeoftheBoardofDirectors,ProposalonAmendingtheWorkSystemforAnnualReportsofIndependentDirectors,ProposalonAmendingtheShareholdingManagementSystemforDirectors,Supervisors,andSeniorManagementMembers,ProposalonAmendingtheFinancialAccountingSystem,ProposalonSigningtheSanjingBranch'sAgreementonNon-residentialHousingExpropriationandCompensationinXinbeiDistrict,ChangzhouCity,andProposalonConveningtheThirdExtraordinary |
| GeneralMeetingin2023 | |||
| The4thExtraordinaryMeetingoftheBoardofDirectorsin2023 | 15December2023 | 16December2023 | ThemeetingdeliberatedonandapprovedtheProposalonUsingIdleFundstoPurchaseWealthManagementProducts |
2.AttendanceofDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Director | Totalnumberofboardmeetingsthedirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingsthedirectorfailedtoattend | Thedirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| LiDesen | 6 | 1 | 5 | 0 | 0 | No | 2 |
| ZhangXin | 10 | 3 | 7 | 0 | 0 | No | 4 |
| XieGuozhong | 6 | 1 | 5 | 0 | 0 | No | 3 |
| TanJie | 6 | 1 | 5 | 0 | 0 | No | 3 |
| JiangHe | 10 | 3 | 7 | 0 | 0 | No | 4 |
| YangFeng | 10 | 1 | 9 | 0 | 0 | No | 4 |
| WangMancang | 10 | 1 | 9 | 0 | 0 | No | 4 |
| ZhangYan | 10 | 2 | 8 | 0 | 0 | No | 4 |
| JiaBin | 6 | 1 | 5 | 0 | 0 | No | 3 |
| ShiXinkun | 4 | 2 | 2 | 0 | 0 | No | 2 |
| LinTian | 4 | 0 | 4 | 0 | 0 | No | 2 |
| XuYi | 4 | 2 | 2 | 0 | 0 | No | 2 |
| XingMin | 4 | 0 | 4 | 0 | 0 | No | 2 |
Explanationofwhyanydirectorfailedtoattendtwoconsecutiveboardmeetings:
N/A
3.ObjectionsRaisedbyDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranydirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
4.OtherInformationaboutthePerformanceofDutybyDirectorsIndicatebytickmarkwhetheranysuggestionsfromdirectorswereadoptedbytheCompany.
√Yes□NoSuggestionsfromdirectorsadoptedornotadoptedbytheCompany:
AlldirectorsoftheCompanyinlinewiththelaw,rules,normativedocumentsandobligationsgivenbytheCompanyoftheCompanylaw,ArticleofAssociations,RulesofProcedureoftheBoardandIndependentDirectorsSystem,comprehensivelyfocusedonthedevelopmentandoperationoftheCompany,activelyattendedthegeneralmeetingofshareholderandmeetingofboardofdirectors.IndependentdirectorsgivenindependentopinionsforthesignificanteventsoftheCompany,andeffectivelymaintainedtheprofitsoftheCompanyandalltheshareholders.TheCompanyactivelylistenedtothesuggestionsfromdirectorsuponthesignificanteventsandadoptedthem.Formoredetails,pleaserefertotheReportontheWorkoftheBoardofDirectorsfor2023disclosedbytheCompanyonhttp://www.cninfo.com.cndated12April2024.
VIISpecialCommitteesundertheBoardofDirectorsduringtheReportingPeriod
| Nameofcommittee | Members | Numberofmeetingsconvened | Dateofmeeting | Contents | Importantcommentsandsuggestions | Otherperformanceofduties |
| AuditCommittee | ZhangYan,WangMancang,LinTian | 3 | 28February2023 | ThemeetingdeliberatedonandapprovedthePreliminaryReviewof2022AnnualReport,AuditPlanfor2022AnnualReport,ReportonInternalAuditWorkfor2022andInternalAuditPlanfor2023,andReportontheUseofRaisedFundsfor2022 | TheauditplanfortheCompany's2022annualreportwasrelativelyreasonable,andthekeycommunicationmatterswereinlinewiththeactualsituationoftheCompany.ThemanagementandtheaccountingfirmareexpectedtocontinuetocloselycooperatetoensurethesmoothcompletionofthedisclosureoftheCompany's2022annualreport | None |
| 6April2023 | Themeetingdeliberatedonandapprovedthe2022FinancialStatements,ProposalonProvisionofReservesforCreditImpairmentandAssetImpairment,SpecialReportontheDepositandUseofRaisedFundsfor2022,andAnnualSelf-EvaluationReportonInternalControlfor2022 | TheCompany'sfinancialstatementsfairlyreflectthefinancialconditionoftheCompanyasat31December2022inallmaterialrespects,anditsoperatingresultsandcashflowsin2022.ItwasconsentedthatboththeproposalsshallbesubmittedtotheBoardofDirectorsfordiscussion | |||
| 25April2023 | ThemeetingdeliberatedontheWorkSummaryoftheAuditDepartmentfortheFirstQuarterof2023,andapprovedtheReportoftheFirstQuarterof2023andtheSpecialReportontheDepositandUseofRaisedFundsintheFirstQuarterof2023 | Itwasconsentedthatboththeproposalsshallbesubmittedtothe1stExtraordinaryMeetingoftheBoardofDirectorsin2023 | |||
| ZhangYan,WangMancang,TanJie | 3 | 24July2023 | ThemeetingdeliberatedonandapprovedtheProposalontheRe-appointmentoftheFinancialAuditInstitutionfor2023andItsAuditExpenses,andProposalontheRe-appointmentoftheInternalControlAuditInstitutionfor2023andItsAuditExpenses | Itwasconsentedthatboththeproposalsshallbesubmittedtothe3rdExtraordinaryMeetingoftheBoardofDirectorsin2023 | |
| 18August2023 | ThemeetingdeliberatedontheWorkReportofAuditDepartmentfortheHalfYearof2023,andapprovedtheSemi-annualReportfor2023,ProposalonProvisionofReservesforCreditImpairmentandAssetImpairment,andSpecialReportontheDepositandUseofRaisedFundsfortheHalfYearof2023 | Itwasconsentedthatboththeproposalsshallbesubmittedtothe2ndMeetingofthe10thBoardofDirectors | |||
| 25October2023 | ThemeetingdeliberatedonandapprovedtheWorkSummaryofAuditDepartmentfortheThirdQuarterof2023,ReportoftheThirdQuarterof2023,SpecialReportontheDepositandUseofRaisedFundsintheThirdQuarterof2023,andProposalontheCompletionoftheProjectofInnovationCapacityBuildingoftheTechnologyCentreinPrivatePlacementRaisedFundsInvestmentProjectandPermanentSupplementofSurplusRaisedFundstoWorkingCapital | AgreetosubmittheReportoftheThirdQuarterof2023andProposalontheCompletionoftheProjectofInnovationCapacityBuildingoftheTechnologyCentreinPrivatePlacementRaisedFundsInvestmentProjectandPermanentSupplementofSurplusRaisedFundstoWorkingCapitaltotheThirdMeetingoftheTenthBoardofDirectorsfordeliberation | |||
| RemunerationandEvaluationCommittee | XingMin,WangMancang,ShiXinkun | 1 | 12January2023 |
ThemeetingdeliberatedonandapprovedtheResultsonthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2022andtheContractonthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2023
VIIIPerformanceofDutybytheSupervisoryCommittee
IndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.IXEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end | 2,002 |
| Numberofin-serviceemployeesofmajorsubsidiariesattheperiod-end | 571 |
| Totalnumberofin-serviceemployeesattheperiod-end | 2,573 |
| TotalnumberofpaidemployeesintheReportingPeriod | 2,573 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 1,677 |
| Sales | 187 |
| Technical | 348 |
| Financial | 41 |
| Administrative | 280 |
| Other | 40 |
| Total | 2,573 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Juniorhighschoolgraduatesandbelow | 1,094 |
| Highschoolgraduates | 679 |
| Collegegraduatesandtechnicalsecondaryschoolgraduates | 497 |
| Bachelors | 285 |
| Mastersandabove | 18 |
| Total | 2,573 |
2.EmployeeRemunerationPolicyTheCompanyalwaysadheredtotheprincipleoftiltingtheremunerationincentivemechanismtowardsexcellenttalents,soastodisplaytherolesofvariousprofessionaltechnicians,managementstaffsandskilledbackbones.Besides,itadheredtotheprincipleofincreasingtheemployee’sincomeintegratedwithincreasinglaborproductionefficiencyandproduction&operationefficiency,soastoperfectthesalarystructureandfurther
increaseemployees’incomesteadily.
3.EmployeeTrainingPlansTheCompanyestablishedtheManagementRulesontheEducation&TrainingforEmployees,aimingtoenhanceemployees’qualityandtryitsbesttocultivateateamoffaithfulandhighlyprofessionaltalents.Besides,itinnovatedthetrainingmechanism,optimizedthetrainingenvironment,andreinforcedtoencourageemployeestoattendvarioustraining,soastoinspiretheemployees’potentialtothemaximumextentandfurtherpromotethesustainabledevelopmentoftheCompany.
4.LaborOutsourcing
□Applicable√NotapplicableXProfitDistributions(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,wasformulated,executedorrevisedintheReportingPeriod:
√Applicable□NotapplicableInArticlesofAssociation,whichhadconfirmedthespecificprofitsdistributionandclearedouttheconditions,standardsandproportionofthecashbonus,stipulatedthedecision-makingprogressoftheformulationandalternationoftheprofitsdistributionpoliciesandthechaptersaswellastheregulationsfullyensuretheopportunitiesforthemediumandsmallshareholderstoexertthefunctionsandtoprovideadvicesaswellasappeals.Thecashbonusofrecent3yearsoftheCompanymetwiththeregulationsoftheArticlesofAssociationandduringthedecision-makingprocessoftheprofitsdistributionproposal,fullyrespectedtheadvicesfromthemediumandsmallshareholders.TheprofitsdistributionpreplanandtheturningcapitalreserveintosharecapitalpreplanoftheCompanywerebothmetwiththerelevantregulationsoftheArticlesofAssociationandsoon.
| Specialstatementaboutthecashdividendpolicy | |
| IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
| Specificandcleardividendstandardandratio | Yes |
| Completedecision-makingprocedureandmechanism | Yes |
| Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
| SpecificreasonsandthenextstepsitintendstotaketoenhancetheinvestorreturnleveliftheCompanydidnotpaycashdividend: | N/A |
| Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
| Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | N/A |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposaldespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletoshareholdersarepositive.
□Applicable√NotapplicableFinaldividendplanfortheReportingPeriod:
√Applicable□Notapplicable
| Bonussharesforevery10shares(share) | 0 |
| Dividendforevery10shares(RMB)(taxinclusive) | 0.47 |
| Additionalsharestobeconvertedfromcapitalreserveforevery10shares(share) | 0 |
| Totalsharesasthebasisfortheprofitdistributionproposal(share) | 705,692,507 |
| Cashdividends(RMB)(taxinclusive) | 33,167,547.83 |
| Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 0 |
| Totalcashdividends(includingthoseinotherforms)(RMB) | 33,167,547.83 |
| Distributableprofit(RMB) | 1,002,436,724.71 |
| Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100% |
| Cashdividendpolicy | |
| Other | |
| Particularsaboutthedividendplan | |
| TheBoardhasapprovedafinaldividendplanasfollows:basedonthetotalsharecapitaloftheCompanyat31December2023,acashdividendofRMB0.47(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves. | |
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIFormulationandImplementationofInternalControlSystemduringtheReportingPeriod
1.InternalControlFormulationandImplementationDuringtheReportingPeriod,theCompanystrictlycompliedwithnationallawsandregulationsandrelevantregulationssuchastheBasicCodeforInternalControlofEnterprisesandtheGuidelinesforApplicationofEnterpriseInternalControl,aswellastheprovisionsandrequirementsoftheCompany'sinternalcontrolstandards,andoptimizedimportantbusinessprocessesandimprovedandperfectedtheinternalcontrolsystemthroughcontinuoussupervisionandeffectiveevaluationoftheoperationoftheCompany'sinternalcontrol,soastoadapttothechangingexternalenvironmentandinternalmanagementrequirementsandimprovetheefficiencyoftheCompany'soperationandmanagement.Bydoingso,theCompanyeffectivelypreventedrisksinoperationandmanagement,andpromotedtheachievementofinternalcontrolobjectives.TheCompany'sinternalcontrolsystemcancoverthemajoraspectsoftheCompany'soperationandmanagement,andtheinternalcontroldesignissoundandreasonable,withnomaterialomissions.
2.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
XIIIManagementofSubsidiariesbytheCompanyduringtheReportingPeriod
| Subsidiary | Integrationplan | Progressonintegration | Problemsfoundinintegration | Solutionstaken | Solutionprogress | Subsequentsolution |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A |
XIVSelf-EvaluationReportorIndependentAuditor’sReportonInternalControl
1.InternalControlSelf-EvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 12April2024 | |
| Indextothedisclosedinternalcontrolself-evaluationreport | 2024-012 | |
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 100.00% | |
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 100.00% | |
| Identificationstandardsforinternalcontrolweaknesses | ||
| Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting |
| Naturestandard | TheCompanyclassifiedthedefectsasseriousdefect,importantdefectandgeneraldefectaccordingtotheinfluencedegreefromtheinternalcontrol:(1)Seriousdefect:referstooneormultiplegroupswithcontroldefectwhichmayleadtheenterpriseseriouslydeviatesthecontroltarget;(2)Importantdefect:referstooneormultiplegroupswithcontroldefectwiththeseverityandtheeconomicresultslowerthanthegreatdefectbutmaystillleadtheenterpriseseriouslydeviatesthecontroltarget;(3)Generaldefect:referstootherdefectexceptforthegreatdefectandsignificantdefect.Naturestandards:defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)thedefectinvolveswiththemalpracticeoftheDirectors,SupervisorsandSeniorExecutives; | Defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)Seriouslyviolatedthenationallawsandadministrativeregulationsandthenormativedocuments;2)“threesignificantonegreat”eventhadnotbeenthroughthecollectivedecision-makingprocess;3)thesignificanteventsinvolvedwiththeproductionandoperationoftheCompanylackedofsystematiccontrolortheinstitutionalsystemwasinvalid;4)theinternalcontroloftheinformationdisclosurewasinvalid,whichledtheCompanybeopencondemnedbythesupervisiondepartment;5)theseriousdefectfromtheassessmentresultsoftheinternalcontrolhadnotbeenrevised. |
| 2)revisedthedisclosedfinancialreport;3)CPAsdiscoveredthegreatmisstatementamongthecurrentfinancialstatementwhilewhichcouldnotbefoundduringtheoperatingprocessoftheinternalcontrol;4)thesupervisionfromtheAuditCommitteeandtheinternalauditinstitutionoftheenterprisewasinvalid. | ||
| Quantitativestandard | Quantitativestandards:Thequantitativestandardsofrecognizingthesignificantdegreeofthemisstatement(includingthefalsenegatives)oftheconsolidatedfinancialreportoftheCompanybasedonthedatafromthe2023consolidatedstatementswasas:Seriousdefect:misstatement≥5%oftheannualprofitsImportantdefect:2.5%oftheannualprofits≤misstatement＜5%oftheannualprofitsGeneraldefect＜2.5%oftheannualprofits | Refertothequantitativecriteriaoftheinternalcontroldefectofthefinancialreport,torecognizethequantitativecriteriaofthesignificantdegreeoftheinternalcontroldefectofthenon-financialreportoftheCompanyas:Seriousdefect:possiblycauseddirectlylosses≥0.1%ofthenetassetsImportantdefect:0.05%ofthenetassets≤possiblycauseddirectlylosses＜0.1%ofthenetassetsGeneraldefect:possiblycauseddirectlylosses＜0.05%ofthenetassets |
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
2.IndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol |
| WebelievedthatChangchaiCompany,LimitedmaintainedeffectiveinternalcontrolofthefinancialreportinsignificantaspectsaccordingtotheBasicNormsofInternalControlandrelevantregulationson31December |
| 2023. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 12April2024 |
| Indextosuchreportdisclosed | S.G.W[2024]No.E1086 |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□NoXVRemediationofProblemsIdentifiedbySelf-inspectionintheSpecialActionontheGovernanceofListedCompaniesN/A
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoAdministrativepunishmentsreceivedintheReportingPeriodduetoenvironmentalissues:
| Companyorsubsidiary | Reasonforpunishment | Violation | Punishment | ImpactontheCompany | RectificationmeasuresoftheCompany |
| N/A | N/A | N/A | N/A | N/A | N/A |
Otherenvironmentalinformationdisclosedwithreferencetokeypolluters:
N/AActionstakenduringtheReportingPeriodtoreducecarbonemissionsandtheimpact:
√Applicable□NotapplicableSeethe2023SocialResponsibilityandESGReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated12April2024.Thereasonfornotdisclosingotherenvironmentalinformation:TheCompanyanditssubsidiariesarenotlistedaskeypollutingunitsbytheenvironmentalprotectiondepartment.TheproductionandoperationoftheCompanyanditssubsidiariesstrictlycomplywithrelevantnationallawsandregulations.TheCompanywillcontinuetostrengthenenvironmentalsupervisionandmanagementtoensurethatthedevelopmentoftheenterprisecomplieswithenvironmentalprotectionpoliciesandregulations.IISocialResponsibility
Seethe2023SocialResponsibilityandESGReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated12April2024.IIIEffortsinPovertyAlleviationandRuralRevitalizationN/A
PartVISignificantEventsIFulfillmentofCommitments
1.CommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutsharetradingrestriction | ItwillnottransferthesharesithasobtainedintheprivateplacementofChangchaiwithin36monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5July2024 | Ongoing |
| ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.ItundertakesnottointerfereintheCompany'soperationandmanagementactivitiesbeyonditsauthorityandnottoencroachontheCompany'sinterests;2.Itundertakesnottotransferbenefitstootherentitiesorindividualsfreeofchargeoronunfairterms,nortoimpairtheinterestsoftheCompanybyanyothermeans;3.AftertheissuanceofthisLetterofCommitmentandbeforethecompletionoftheCompany'snon-publicofferingof | 11April2020 | 11April2020-31December9999 | Ongoing |
| shares,iftheChinaSecuritiesRegulatoryCommission(CSRC)makesothernewregulatoryprovisionsonthereturnfillingmeasuresandcommitments,andtheaforesaidcommitmentscannotmeetsuchprovisionsoftheCSRC,itundertakestoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC;4.ItundertakestoeffectivelyimplementtheCompany'smeasurestofillthereturnandanycommitmentsmadethereon.IftheCompanybreachessuchcommitmentsandcauseslossestotheCompanyortheinvestors,theCompanyiswillingtocompensatetheCompanyortheinvestorsaccordingtolaw. | ||||||
| Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | Aboutdividends | RewardsPlanforShareholdersinNextThreeYears(2023-2025)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | 18May2023 | Year2023-2025 | Ongoing |
| Fulfilledontimeornot | Yes | |||||
| Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A | |||||
2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√Notapplicable
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheLatestPeriod
□Applicable√Notapplicable
VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandCorrectionofMaterialAccountingErrors
√Applicable□Notapplicable
| Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
| TheCompanystartstoimplementthe“accountingtreatmentfordeferredincometaxrelatingtoassetsandliabilitiesarisingfromasingletransactionthatisnotsubjecttotheinitialrecognitionexemption”stipulatedintheAccountingStandardsforBusinessEnterprisesInterpretationNo.16issuedbytheMinistryofFinanceon13November2022since1January2023. | / | Notesofchangestoaccountingpolicies |
Descriptionofchangesinaccountingpolicies:
(1)TheimpactofimplementingtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprisesontheCompanyOn13December2022,theMinistryofFinanceissuedtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprises(CaiKuai[2022]No.31,hereinafterreferredtoas"InterpretationNo.16").Since1January2023,thestipulationof"theaccountingprocessingofinitialrecognitionexemptionisnotapplicabletodeferredincometaxrelatedtoassetsandliabilitiesarisingfromindividualtransactions"hasbeenimplemented,allowingenterprisestoexecuteitaheadofschedulefortheirownannualrelease.TheaccountingprocessingrelatedtothismatterthatwasnotimplementedinadvancebytheCompanyin2023willbeimplementedfrom1January2023.InterpretationNo.16stipulatesthatforsingletransactionsthatarenotbusinesscombinations,thataffectneitheraccountingprofitnortaxableincome(ordeductiblelosses)atthetimewhenthetransactionoccurs,andwherethe
initialrecognitionofassetsandliabilitiesresultsintaxabletemporarydifferencesanddeductibletemporarydifferencesofequalamounts(includingleasetransactionsinwhichthelesseerecognisestheinitialleaseliabilityandincludesitintheright-of-useassetonthecommencementdateoftheleaseterm,aswellassingletransactionsinwhichestimatedliabilitiesarerecognisedandincludedinthecostsofrelatedassetsduetofixedassets'retirementobligations),exemptionfrominitialrecognitionofdeferredincometaxliabilitiesanddeferredincometaxassetsshallnotapply.Enterprisesshallrecognisethecorrespondingdeferredincometaxliabilitiesanddeferredincometaxassets,respectively,inaccordancewithNo.18oftheAccountingStandardsforBusinessEnterprises--IncomeTaxeswhenthetransactionisaffected.Forsingletransactionsthatoccurredbetweenthebeginningoftheearliestperiodpresentedinthefinancialstatementsandthedateofinitialapplicationofthisprovision,aswellasleaseliabilitiesandright-of-useassetsrecognisedatthebeginningoftheearliestperiodpresentedinthefinancialstatementsduetotheapplicationofthisprovisiontosingletransactions,andrecognisedestimatedliabilitiesrelatedtoretirementobligationsandcorrespondingrelatedassets,whichcreatetaxabletemporarydifferencesanddeductibletemporarydifferences,enterprisesshallmakeadjustmentsinaccordancewiththisprovision.ThechangeinaccountingpolicyhasnoimpactontheCompany'sfinancialstatements.
VIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable√NotapplicableVIIIEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
| Nameofthedomesticindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 63 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 22 |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | WangWenkai,QinZhijun |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | ThreeyearsforWangWenkai,threeyearsforQinZhijun |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
√Applicable□NotapplicableInthisyear,theCompanyretainedGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)astheauditinstitutionforitsinternalcontrolattheauditfeesofRMB140,000.
IXPossibilityofDelistingafterDisclosureofthisReport
□Applicable√Notapplicable
XInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIMajorLegalMatters
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIICreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
√Applicable□NotapplicableThedefactocontrolleroftheCompanyisSASACofChangzhouPeople’sGovernmentandthecontrollingshareholderofitisChangzhouInvestmentGroupCo.,Ltd.Thereisnosuchcasethatthecontrollingshareholderfailstoperformanylegallyeffectivejudgmentofcourtsortopayoffmatureddebtswithalargeamount.XIVMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorDisposalofAssetsorEquityInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.AmountsDuetoandfromRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable√NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable√NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
3.CashEntrustedforWealthManagement
(1)CashEntrustedforWealthManagement
√Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
| Specifictype | Capitalresources | Amountincurred | Unduebalance | Unrecoveredoverdueamount | Unrecoveredoverdueamountwithprovisionforimpairment |
| Bankfinancialproducts | Self-funded | 36,070 | 13,070 | 0 | 0 |
| Bankfinancialproducts | Raised-funded | 10,000 | 0 | 0 | 0 |
| Brokerfinancialproducts | Self-funded | 2,028.98 | 1,300 | 0 | 0 |
| Total | 48,098.98 | 14,370 | 0 | 0 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidity:
□Applicable√NotapplicableSituationwheretheprincipalisexpectedlyirrecoverableorimpairmentmaybeincurred:
□Applicable√Notapplicable
(2)EntrustedLoans
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIOtherSignificantEvents
√Applicable□Notapplicable
1.ExpropriationoftheWuxingbranchcompany’spropertiesonstate-ownedlandandcompensationOn25May2023,theProposalontheIntentiontoSigntheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensationwasapprovedatthe17thMeetingoftheNinthBoardofDirectors.Later,thesaidmatterwasapprovedattheFirstExtraordinaryGeneralMeetingofShareholdersin2023dated12June2023.Assuch,theCompanywasagreedtosignacontractwithChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureauontheexpropriation
oftheWuxingbranchcompany’spropertiesonstate-ownedlandandthecompensation,withthecontractualtotalcompensationamountbeingRMB117million.On14June2023,theCompanysignedtheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensationwithChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureau,andreceivedthefirstcompensationpaymentofRMB70millionon28June2023,andreceivedtheresidualcompensationpaymentofRMB47millionon9January2024.
2.Housingexpropriationonstate-ownedlandandcompensationofSanjingBranchOn27October2023,theCompanyheldtheThirdMeetingoftheTenthBoardofDirectors,deliberatingonandapprovingtheProposalonSigningtheSanjingBranch'sAgreementonNon-residentialHousingExpropriationandCompensationinXinbeiDistrict,ChangzhouCity.Thematterwasapprovedatthethirdextraordinarygeneralmeetingon14November2023,approvingthattheCompanywouldsignagreementwiththeHousingandUrban-RuralDevelopmentBureauofChangzhouNationalHigh-techIndustrialDevelopmentZoneandtheHousingExpropriationandCompensationServiceCentreofSanjingStreet,XinbeiDistrict,ChangzhouCity,regardingthehousingexpropriationonstate-ownedlandandcompensationoftheSanjingBranch.ThetotalcompensationamountundertheagreementwasRMB99,929,900.On29November2023,theCompanysignedtheAgreementonNon-residentialHousingExpropriationandCompensationwiththeHousingandUrban-RuralDevelopmentBureauofChangzhouNationalHigh-techIndustrialDevelopmentZoneandtheHousingExpropriationandCompensationServiceCentreofSanjingStreet,XinbeiDistrict,ChangzhouCity.TheCompanyreceivedthefirstcompensationofRMB30millionuntilJanuary2024.
XVIISignificantEventsofSubsidiaries
√Applicable□Notapplicable
1.Acquisitionof7.5%equityheldbynaturalpersonshareholdersofZhenjiangSiyangInDecember2023,theCompanyacquired7.5%equityheldbythreenaturalpersonshareholdersofitspartially-ownedsubsidiariesZhenjiangSiyangwithRMB7.17million.Asat31December2023,theCompanyhadheldatotalof49%equityinZhenjiangSiyangandremaineditslargestshareholder.
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
| 1.Restrictedshares | 56,818,181 | 8.05% | 0 | 56,818,181 | 8.05% | ||||
| 1.1Sharesheldbygovernment | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| 1.2Sharesheldbystate-ownedlegalpersons | 56,818,181.00 | 8.05% | 0 | 56,818,181.00 | 8.05% | ||||
| 1.3Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Amongwhich:Sharesheldby | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| domesticlegalpersons | ||||||
| Sharesheldbydomesticnaturalpersons | 0 | 0.00% | 0 | 0 | 0.00% | |
| 1.4Sharesheldbyforeigninvestors | 0 | 0.00% | 0 | 0 | 0.00% | |
| Amongwhich:Sharesheldbyforeignlegalpersons | 0 | 0.00% | 0 | 0 | 0.00% | |
| Sharesheldbyforeignnaturalpersons | 0 | 0.00% | 0 | 0 | 0.00% | |
| 2.Unrestrictedshares | 648,874,326 | 91.95% | 0 | 648,874,326 | 91.95% | |
| 2.1RMB-denominatedordinaryshares | 498,874,326 | 70.69% | 0 | 498,874,326 | 70.69% | |
| 2.2Domesticallylistedforeignshares | 150,000,000 | 21.26% | 0 | 150,000,000 | 21.26% |
| 2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0 | 0.00% | |
| 2.4Other | 0 | 0.00% | 0 | 0 | 0.00% | |
| 3.Totalshares | 705,692,507 | 100.00% | 0 | 705,692,507 | 100.00% |
Reasonsforthesharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableII.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable√Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable
3.ExistingStaff-HeldShares
□Applicable√NotapplicableIIIShareholdersandActualController
Unit:share
| Numberofordinaryshareholders | 58,653 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 56,686 | Numberofpreferredshareholderswithresumedvotingrights | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport | 0 | |||||||
| 5%orgreatershareholdersortop10shareholders | ||||||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
| Status | Shares | |||||||||||||
| ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 32.26% | 227,663,417 | 0 | 56,818,181 | 170,845,236 | N/A | 0 | ||||||
| ChenJian | Domesticnaturalperson | 0.49% | 3,478,600 | -1,501,300 | 0 | 3,478,600 | ||||||||
| KGIASIALIMITED | Foreignlegalperson | 0.44% | 3,101,695 | 0 | 3,101,695 | |||||||||
| WuChunhua | Domesticnaturalperson | 0.35% | 2,442,200 | 2,442,200 | 2,442,200 | |||||||||
| ChinaInternationalCapitalCorporationLimited | State-ownedlegalperson | 0.27% | 1,921,527 | 1,921,527 | 1,921,527 | |||||||||
| LuZhang | Domesticnaturalperson | 0.26% | 1,836,643 | 1,836,643 | 1,836,643 | |||||||||
| LiSuinan | Domesticnaturalperson | 0.23% | 1,593,800 | 24,700 | 1,593,800 | |||||||||
| ZhangWenbing | Domesticnaturalperson | 0.22% | 1,556,700 | 1,556,700 | 1,556,700 | |||||||||
| HuangGuoliang | Domesticnaturalperson | 0.22% | 1,528,891 | 0 | 1,528,891 | |||||||||
| HuataiSecuritiesCo.,Ltd. | State-ownedlegalperson | 0.21% | 1,509,155 | 1,509,155 | 1,509,155 | |||||||||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue(ifany) | N/A | |||||||||||||
| Relatedoracting-in-concertpartiesamongtheshareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concert | |||||||||||||
| above | partiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| Aboveshareholdersinvolvedinentrusting/beingentrustedwithvotingrightsandgivingupvotingrights | N/A | ||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | ||
| Top10unrestrictedshareholders | |||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |
| Type | Shares | ||
| ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMB-denominatedordinaryshare | 170,845,236 |
| ChenJian | 3,478,600 | RMB-denominatedordinaryshare | 3,478,600 |
| KGIASIALIMITED | 3,101,695 | Domesticallylistedforeignshare | 3,101,695 |
| WuChunhua | 2,442,200 | RMB-denominatedordinaryshare | 2,442,200 |
| ChinaInternationalCapitalCorporationLimited | 1,921,527 | RMB-denominatedordinaryshare | 1,921,527 |
| LuZhang | 1,836,643 | Domesticallylistedforeignshare | 1,836,643 |
| LiSuinan | 1,593,800 | Domesticallylistedforeignshare | 1,593,800 |
| ZhangWenbing | 1,556,700 | RMB-denominatedordinaryshare | 1,556,700 |
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 |
| HuataiSecuritiesCo.,Ltd. | 1,509,155 | RMB-denominatedordinaryshare | 1,509,155 |
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholdersChenJianandWuChunhuaheld2,952,800and2,442,200sharesrespectivelyintheCompanythroughtheirmarginaccounts. | ||
Top10shareholdersinvolvedinrefinancingshareslending
□Applicable√Notapplicable
Changesintop10shareholderscomparedwiththepriorperiod
√Applicable□Notapplicable
Unit:share
| Changesintop10shareholderscomparedwiththeendofthepriorperiod | |||||
| Fullnameofshareholder | Newlyaddedorexistingfromtop10shareholdersintheReportingPeriod | Shareslentinrefinancingandnotyetreturnedattheperiod-end | Sharesinthecommonaccountandcreditaccountplusshareslentinrefinancingandnotyetreturnedattheperiod-end | ||
| Totalshares | As%oftotalsharecapital | Totalshares | As%oftotalsharecapital | ||
| WuChunhua | Newlyadded | 0 | 0.00% | 2,442,200 | 0.35% |
| ChinaInternationalCapitalCorporationLimited | Newlyadded | 0 | 0.00% | 1,921,527 | 0.27% |
| LuZhang | Newlyadded | 0 | 0.00% | 1,836,643 | 0.26% |
| ZhangWenbing | Newlyadded | 0 | 0.00% | 1,556,700 | 0.22% |
| HuataiSecuritiesCo.,Ltd. | Newlyadded | 0 | 0.00% | 1,509,155 | 0.21% |
| MORGANSTANLEY&CO.INTERNATIONALPLC. | Exiting | 0 | 0.00% | 694,573 | 0.10% |
| YangXuee | Exiting | 0 | 0.00% | 0 | 0.00% |
| ChinaMinshengBank-GoldstateYuanqiDynamicAssetAllocationMixedTypeSecuritiesInvestmentFund | Exiting | 0 | 0.00% | 0 | 0.00% |
| CLSAAssetManagementLimited-Clients’Capital | Exiting | 0 | 0.00% | 938,641 | 0.13% |
| DaiWenping | Exiting | 0 | 0.00% | 0 | 0.00% |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyalocalstate-ownedlegalpersonTypeofthecontrollingshareholder:Legalperson
| Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| ChangzhouInvestmentGroupCo.,Ltd | LiDesen | 20June2002 | 91320400467283980X | Propertyinvestmentand |
| management | ||
| Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | None | |
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Localinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:Legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment | ShiJiangshui | 11320400014110251M | Notapplicable | |
| OtherlistedcompaniesathomeorabroadcontrolledbytheactualcontrollerintheReportingPeriod | None | |||
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.NumberofAccumulativePledgedSharesheldbytheCompany’sControllingShareholderortheLargestShareholderaswellasItsActing-in-ConcertPartiesAccountsfor80%ofallsharesoftheCompanyheldbyThem
□Applicable√Notapplicable
5.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
√Applicable□NotapplicableChangzhouInvestmentGroupCo.,Ltd.,thecontrollingshareholderoftheCompany,participatedinthenon-publicofferingofsharesoftheCompanyandwasallotted56,818,181shareswithasubscriptionamountofRMB249,999,996.40.Theshareswerelistedon5July2021,witha36-monthlock-upperiodandareleasedateof5July2024.IVSpecificImplementationofShareRepurchaseduringtheReportingPeriod
Progressonanysharerepurchase
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding
□Applicable√Notapplicable
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
□Applicable√Notapplicable
PartXFinancialStatementsIIndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 10April2024 |
| Nameoftheindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
| No.oftheauditor’sreport | S.G.W[2024]No.A250 |
| Nameofthecertifiedpublicaccountants | WangWenkai,QinZhijun |
TextoftheIndependentAuditor’sReport
TotheShareholdersofChangchaiCompany,Limited,
IOpinionWehaveauditedtheaccompanyingfinancialstatementsofChangchaiCompany,Limited.(togetherwithitsconsolidatedsubsidiariesincludedintheconsolidatedfinancialstatements,the“Company”),whichcomprisetheparent’sandconsolidatedbalancesheetsasat31December2023,theparent’sandconsolidatedincomestatements,theparent’sandconsolidatedcashflowstatements,theparent’sandconsolidatedstatementsofchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionofChangchaiCompany,Limited.Asat31December2023andtheconsolidatedandparentbusinessperformanceandcashflowfor2023.IIBasisforOpinionWeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Andkeyauditmatteridentifiedinourauditissummarizedasfollows:
(I)Recognitionofrevenue
1.DescriptionoftheitemFordetailsandanalysisoftheaccountingpoliciesforrevenuerecognition,pleaserefertoaccountingpoliciesstatedinthenotestofinancialstatements“III.30.Revenue”and“V.39.Operatingincomeandoperatingcost”.In2023,theoperatingincomeofChangchaiCompanyamountedtoRMB2,155,698,800.SincetheoperatingrevenueisoneofkeyperformanceindicatorsoftheCompany,andthereistheinherentriskthatthemanagementmaymanipulatethetimingofrevenuerecognitionforthepurposeofachievingcertaingoalsorexpectations,soweidentifytherevenuerecognitionasakeyaudititem.
2.Responseforaudit
(1)Knowthekeyinternalcontrolrelatedtorevenuerecognition,evaluatewhetheritsdesignandexecutionarevalidornot,andtesttheoperationeffectivenessoftherelatedinternalcontrol.
(2)Interviewthemanagement,knowabouttherecognitionpoliciesregardingrevenueoftheCompany,getandcheckcontractsoragreementsoftheCompanysignedwithcustomers,identifycontracttermsrelatedtotherecognitionofsalesrevenueofproductsandevaluatewhethertherevenuerecognitionoftheCompanymeetstherequirementsofaccountingstandardsforbusinessenterprises.
(3)Forsalesrevenue,conductingsamplingtestsonsupportingdocumentsrelatedtorevenuerecognition,soastochecksupportingdocumentssuchastermsassociatedwithcontroltransferofcommoditiesinsalescontractsanddocumentationcollectedandacknowledgedbyauxiliarymanufacturers(includingbutnotlimitedtosalescontracts,orders,salesinvoices,deliverynotes,exportcustomsdeclarations,etc.);
(4)Checktheoperatingrevenuerecognizedbeforeandafterthebalancesheetdatetothesupportingdocuments,suchasshippingorder,declarationforexportation,andetcbysamplingmethodtoassesswhethertheoperatingrevenueisrecognizedwithinappropriateperiod.
(5)Implementtheconfirmationbydrawingsampletorecognizethebalanceofaccountsreceivableandtheamountofsalesrevenueaccordingtothefeaturesandnaturesofcustomertransaction.(II)Baddebtprovisionforaccountsreceivable
1.DescriptionoftheitemAsaccountingpoliciesstatedinthenotestofinancialstatements“III.10.Impairmentoffinancialinstruments”and“V.4.Accountsreceivable”.On31December2023,thebookbalanceofaccountsreceivableofChangchaiCompanystoodatRMB464,310,500,thebaddebtprovisionamountedtoRMB147,767,300,andthebookvaluewasRMB316,543,200,accountingfor6.13%ofthetotalassetsattheendofthereportingperiod.AsthebalanceofaccountsreceivableissignificantandthejudgementoftheManagementisinvolvedinthewithdrawalofbaddebtprovisionofaccountsreceivable,weconsiderthisasakeyauditmatter.
2.Responseforaudit
(1)AccessChangchai’sinternalcontrolsystemsofsalesandaccountsreceivablemanagementtounderstandandevaluatethedesignofinternalcontrol,andcarryoutwalk-throughtesttoconfirmtheimplementationofinternalcontrolsystems.
(2)AnalyzeandconfirmthereasonablenessofChangchai’saccountingestimatesofbaddebtprovisionforaccountsreceivable,includingthebasisfordeterminingthecombinationofaccountsreceivable,theexpectedcreditlossrateandthejudgmentofimpairmenttestofaccountsreceivableevaluatedindividually.
(3)Combinedbaddebtprovisionpolicyforaccountsreceivable,verifyingtheaccuracyofthebasisfordeterminingaccountsreceivableportfolioandthereasonablenessofbaddebtprovisionseparatelyaccrued;
(4)Accessandchecktheaccountreceivabledetails,agingschedule,statementofprovisionsforbaddebts,andconfirmthereasonablenessofbaddebtprovisionforaccountsreceivablebycombiningwiththerequestofconfirmationofbalanceandsubsequentcollectioninspection;
(5)Foraccountsreceivablewithbaddebtprovisionbysingleitem,referringtocorrespondingcontractsandotherinformationtoobtainanunderstandingofsalesandrepaymentsanddeterminewhetherthebaddebtprovisionbysingleitemisadequatelywithdrawn.
(6)Sendrequestforconfirmationofbalance,andconfirmtheauthenticityandaccuracyoftheamountofaccountsreceivableonthebalancesheetdatebycombiningwithsubsequentinspectionandotherprocedures.IVOtherInformationTheCompany’smanagement(hereinafterreferredtoas“management”)isresponsiblefortheotherinformation.TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2023AnnualReportotherthan
thefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.VResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatementsThemanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,mattersrelatedtogoingconcern(ifapplicable)andusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VIAuditor’sResponsibilitiesforAuditofFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbyCAStodrawusers’attentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatements.Ifsuchdisclosuresareinadequate,weneedtomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancial
statementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheCompanyaudit.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregardingtheplannedscopeandtimingoftheauditandsignificantauditfindings,includinganynoteworthydeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.GongzhengTianyeCertifiedPublicAccountantsChineseCPA:
(SpecialGeneralPartnership)(EngagementPartner)
ChineseCPA:
Wuxi·China10April2024IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
31December2023
Unit:RMB
| Item | 31December2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 1,083,867,966.87 | 930,013,350.97 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 225,641,429.94 | 370,103,602.57 |
| Derivativefinancialassets | ||
| Notesreceivable | 161,632,567.94 | 297,125,872.54 |
| Accountsreceivable | 316,543,159.91 | 370,322,179.77 |
| Accountsreceivablefinancing | 195,875,948.92 | 242,813,392.79 |
| Prepayments | 12,333,310.85 | 6,330,202.69 |
| Premiumsreceivable |
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 49,699,753.61 | 32,938,305.16 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 789,220,185.68 | 571,996,881.74 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | 40,773,509.75 | |
| Othercurrentassets | 20,910,504.84 | 49,279,022.49 |
| Totalcurrentassets | 2,896,498,338.31 | 2,870,922,810.72 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | 39,309,587.93 | |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 969,488,025.67 | 955,560,240.08 |
| Othernon-currentfinancialassets | 412,914,576.80 | 373,500,000.00 |
| Investmentproperty | 39,837,558.11 | 42,160,779.65 |
| Fixedassets | 675,596,920.95 | 720,061,387.76 |
| Constructioninprogress | 4,275,622.18 | 30,281,547.56 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 148,458,185.68 | 157,392,217.54 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | 8,227,958.66 | 3,279,970.32 |
| Deferredincometaxassets | 1,518,995.79 | 26,220,575.93 |
| Othernon-currentassets | 2,578,776.77 | 670,735.93 |
| Totalnon-currentassets | 2,262,896,620.61 | 2,348,437,042.70 |
| Totalassets | 5,159,394,958.92 | 5,219,359,853.42 |
| Currentliabilities: | ||
| Short-termborrowings | 115,437,700.65 | |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 528,139,582.33 | 471,876,397.72 |
| Accountspayable | 641,484,184.05 | 747,010,098.88 |
| Advancesfromcustomers | 1,647,441.22 | 837,425.55 |
| Contractliabilities | 33,352,877.66 | 32,843,692.83 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 47,738,883.57 | 49,351,022.47 |
| Taxespayable | 6,231,169.74 | 8,570,175.39 |
| Otherpayables | 159,023,382.81 | 160,046,882.93 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 67,069,965.96 | 78,645,741.16 |
| Totalcurrentliabilities | 1,484,687,487.34 | 1,664,619,137.58 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities |
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 32,795,896.48 | 36,205,625.94 |
| Deferredincometaxliabilities | 171,843,455.52 | 161,360,251.33 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 204,639,352.00 | 197,565,877.27 |
| Totalliabilities | 1,689,326,839.34 | 1,862,185,014.85 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 640,509,675.84 | 640,133,963.01 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 667,180,321.82 | 655,341,704.07 |
| Specificreserve | 19,432,089.52 | 18,848,856.75 |
| Surplusreserves | 363,695,592.34 | 349,197,725.72 |
| Generalreserve | ||
| Retainedearnings | 1,002,436,724.71 | 915,495,909.35 |
| TotalequityattributabletoownersoftheCompanyastheparent | 3,398,946,911.23 | 3,284,710,665.90 |
| Non-controllinginterests | 71,121,208.35 | 72,464,172.67 |
| Totalowners’equity | 3,470,068,119.58 | 3,357,174,838.57 |
| Totalliabilitiesandowners’equity | 5,159,394,958.92 | 5,219,359,853.42 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 971,143,382.52 | 792,744,709.77 |
| Held-for-tradingfinancialassets | 100,437,916.67 | 280,354,111.11 |
| Derivativefinancialassets | ||
| Notesreceivable | 152,906,979.84 | 282,556,327.54 |
| Accountsreceivable | 291,996,837.94 | 329,060,940.50 |
| Accountsreceivablefinancing | 193,679,203.92 | 291,837,385.00 |
| Prepayments | 5,850,589.29 | 3,097,586.07 |
| Otherreceivables | 399,142,024.92 | 179,596,495.57 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 475,538,711.10 | 397,626,837.43 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | 40,773,509.75 | |
| Othercurrentassets | 5,839,708.73 | 15,594,949.05 |
| Totalcurrentassets | 2,637,308,864.68 | 2,572,469,342.04 |
| Non-currentassets: | ||
| Investmentsindebtobligations | 39,309,587.93 | |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 576,443,530.03 | 569,273,530.03 |
| Investmentsinotherequityinstruments | 969,488,025.67 | 955,560,240.08 |
| Othernon-currentfinancialassets | 412,914,576.80 | 373,500,000.00 |
| Investmentproperty | 39,837,558.11 | 42,160,779.65 |
| Fixedassets | 229,931,726.27 | 249,558,305.21 |
| Constructioninprogress | 2,166,940.74 | 18,366,604.84 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 58,781,756.11 | 64,783,364.89 |
| Developmentcosts | ||
| Goodwill |
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 920,609.18 | 19,860,262.43 |
| Othernon-currentassets | 830,991.15 | |
| Totalnon-currentassets | 2,291,315,714.06 | 2,332,372,675.06 |
| Totalassets | 4,928,624,578.74 | 4,904,842,017.10 |
| Currentliabilities: | ||
| Short-termborrowings | 108,437,700.65 | |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 524,671,742.33 | 518,918,596.58 |
| Accountspayable | 526,544,716.02 | 541,911,517.64 |
| Advancesfromcustomers | 1,647,441.22 | 837,425.55 |
| Contractliabilities | 26,149,334.52 | 24,129,579.35 |
| Employeebenefitspayable | 40,766,429.54 | 41,558,489.86 |
| Taxespayable | 2,069,482.65 | 3,119,171.69 |
| Otherpayables | 151,919,473.64 | 151,206,684.89 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 53,417,011.96 | 67,810,395.33 |
| Totalcurrentliabilities | 1,327,185,631.88 | 1,457,929,561.54 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 32,795,896.48 | 36,205,625.94 |
| Deferredincometaxliabilities | 157,053,077.87 | 149,039,152.68 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 189,848,974.35 | 185,244,778.62 |
| Totalliabilities | 1,517,034,606.23 | 1,643,174,340.16 |
| Owners’equity: |
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 659,418,700.67 | 659,418,700.67 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 667,180,321.82 | 655,341,704.07 |
| Specificreserve | 19,010,793.43 | 18,848,856.75 |
| Surplusreserves | 363,695,592.34 | 349,197,725.72 |
| Retainedearnings | 996,592,057.25 | 873,168,182.73 |
| Totalowners’equity | 3,411,589,972.51 | 3,261,667,676.94 |
| Totalliabilitiesandowners’equity | 4,928,624,578.74 | 4,904,842,017.10 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangH
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | 2023 | 2022 |
| 1.Revenue | 2,155,698,787.49 | 2,182,043,095.61 |
| Including:Operatingrevenue | 2,155,698,787.49 | 2,182,043,095.61 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 2,156,452,273.22 | 2,247,441,538.64 |
| Including:Costofsales | 1,838,755,831.41 | 1,948,677,036.52 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 15,057,398.25 | 16,973,196.26 |
| Sellingexpense | 99,603,282.16 | 102,630,223.71 |
| Administrativeexpense | 123,981,333.99 | 119,511,189.72 |
| R&Dexpense | 90,339,104.33 | 81,239,597.06 |
| Financecosts | -11,284,676.92 | -21,589,704.63 |
| Including:Interestexpense | 1,825,195.98 | 1,993,453.71 |
| Interestincome | 9,008,657.82 | 12,804,077.19 |
| Add:Otherincome | 6,788,111.97 | 7,184,028.05 |
| Returnoninvestment(“-”forloss) | 19,102,348.95 | 7,969,467.19 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 49,816,098.68 | 145,243,457.17 |
| Creditimpairmentloss(“-”forloss) | -172,171.65 | -2,953,740.73 |
| Assetimpairmentloss(“-”forloss) | -27,893,895.75 | -14,367,197.27 |
| Assetdisposalincome(“-”forloss) | 105,702,551.01 | 393,161.73 |
| 3.Operatingprofit(“-”forloss) | 152,589,557.48 | 78,070,733.11 |
| Add:Non-operatingincome | 927,993.65 | 4,257,942.65 |
| Less:Non-operatingexpense | 1,182,537.54 | 618,463.56 |
| 4.Profitbeforetax(“-”forloss) | 152,335,013.59 | 81,710,212.20 |
| Less:Incometaxexpense | 37,636,658.03 | 2,464,079.74 |
| 5.Netprofit(“-”fornetloss) | 114,698,355.56 | 79,246,132.46 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 114,698,355.56 | 79,246,132.46 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent | 108,495,607.05 | 76,684,796.91 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 6,202,748.51 | 2,561,335.55 |
| 6.Othercomprehensiveincome,netoftax | 11,838,617.75 | 149,330,204.52 |
| AttributabletoownersoftheCompanyastheparent | 11,838,617.75 | 149,330,204.52 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 11,838,617.75 | 149,330,204.52 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 11,838,617.75 | 149,330,204.52 |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 126,536,973.31 | 228,576,336.98 |
| AttributabletoownersoftheCompanyastheparent | 120,334,224.80 | 226,015,001.43 |
| Attributabletonon-controllinginterests | 6,202,748.51 | 2,561,335.55 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.1537 | 0.1087 |
| 8.2Dilutedearningspershare | 0.1537 | 0.1087 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | 2023 | 2022 |
| 1.Operatingrevenue | 2,057,120,913.33 | 1,988,473,044.55 |
| Less:Costofsales | 1,788,129,884.67 | 1,784,345,704.10 |
| Taxesandsurcharges | 8,602,178.79 | 11,846,885.20 |
| Sellingexpense | 92,935,731.73 | 97,601,117.35 |
| Administrativeexpense | 87,122,617.94 | 90,150,661.31 |
| R&Dexpense | 79,855,291.69 | 72,372,647.10 |
| Financecosts | -19,194,141.71 | -22,274,862.27 |
| Including:Interestexpense | 1,562,299.35 | 1,531,942.32 |
| Interestincome | 17,311,210.31 | 15,122,552.35 |
| Add:Otherincome | 6,016,229.41 | 6,504,428.46 |
| Returnoninvestment(“-”forloss) | 15,102,581.80 | 36,604,658.62 |
| Including:Shareofprofitorlossofjointventuresandassociates | 28,800,000.00 | |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 39,852,493.47 | 186,354,111.11 |
| Creditimpairmentloss(“-”forloss) | 3,495,307.23 | -8,854,137.91 |
| Assetimpairmentloss(“-”forloss) | -20,288,104.38 | -11,526,145.82 |
| Assetdisposalincome(“-”forloss) | 105,727,630.80 | 4,181,548.77 |
| 2.Operatingprofit(“-”forloss) | 169,575,488.55 | 167,695,354.99 |
| Add:Non-operatingincome | 319,236.80 | 345,409.40 |
| Less:Non-operatingexpense | 51,648.54 | 102,766.76 |
| 3.Profitbeforetax(“-”forloss) | 169,843,076.81 | 167,937,997.63 |
| Less:Incometaxexpense | 24,864,410.60 | 17,405,625.04 |
| 4.Netprofit(“-”fornetloss) | 144,978,666.21 | 150,532,372.59 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 144,978,666.21 | 150,532,372.59 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 11,838,617.75 | 149,330,204.52 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 11,838,617.75 | 149,330,204.52 |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 11,838,617.75 | 149,330,204.52 |
| 5.1.4Changesinthefairvaluearisingfromchangesin |
| owncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | ||
| 6.Totalcomprehensiveincome | 156,817,283.96 | 299,862,577.11 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2023 | 2022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,031,067,538.52 | 2,089,127,900.17 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 98,155,472.59 | 38,479,590.77 |
| Cashgeneratedfromotheroperatingactivities | 40,082,851.79 | 22,990,293.44 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,169,305,862.90 | 2,150,597,784.38 |
| Paymentsforcommoditiesandservices | 1,533,814,952.73 | 1,312,012,931.69 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 310,775,202.76 | 313,119,839.28 |
| Taxespaid | 33,394,657.94 | 52,344,111.33 |
| Cashusedinotheroperatingactivities | 154,131,222.12 | 108,190,624.24 |
| Subtotalofcashusedinoperatingactivities | 2,032,116,035.55 | 1,785,667,506.54 |
| Netcashgeneratedfrom/usedinoperatingactivities | 137,189,827.35 | 364,930,277.84 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,101,955,152.04 | 914,060,767.00 |
| Returnoninvestment | 23,632,366.98 | 17,913,476.59 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 71,562,956.31 | 692,980.99 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 11,400,123.61 | |
| Subtotalofcashgeneratedfrominvestingactivities | 1,197,150,475.33 | 944,067,348.19 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 97,110,602.27 | 48,439,287.62 |
| Paymentsforinvestments | 947,055,152.04 | 1,033,581,567.00 |
| Netincreaseinpledgedloansgranted |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 1,044,165,754.31 | 1,082,020,854.62 |
| Netcashgeneratedfrom/usedininvestingactivities | 152,984,721.02 | -137,953,506.43 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 7,000,000.00 | |
| Cashgeneratedfromotherfinancingactivities | 128,437,700.65 | |
| Subtotalofcashgeneratedfromfinancingactivities | 135,437,700.65 | |
| Repaymentofborrowings | 7,000,000.00 | 12,000,000.00 |
| Interestanddividendspaid | 7,195,400.07 | 18,689,380.47 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 117,170,000.00 | 83,623,545.07 |
| Subtotalofcashusedinfinancingactivities | 131,365,400.07 | 114,312,925.54 |
| Netcashgeneratedfrom/usedinfinancingactivities | -131,365,400.07 | 21,124,775.11 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 2,469,409.11 | -152,802.06 |
| 5.Netincreaseincashandcashequivalents | 161,278,557.41 | 247,948,744.46 |
| Add:Cashandcashequivalents,beginningoftheperiod | 810,350,966.05 | 562,402,221.59 |
| 6.Cashandcashequivalents,endoftheperiod | 971,629,523.46 | 810,350,966.05 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2023 | 2022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,151,742,371.58 | 2,040,092,339.55 |
| Taxrebates | 40,874,390.40 | 27,588,745.34 |
| Cashgeneratedfromotheroperatingactivities | 21,935,914.65 | 21,378,587.89 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,214,552,676.63 | 2,089,059,672.78 |
| Paymentsforcommoditiesandservices | 1,636,385,419.97 | 1,330,893,073.67 |
| Cashpaidtoandforemployees | 212,298,042.01 | 243,134,907.26 |
| Taxespaid | 8,731,121.51 | 39,870,320.72 |
| Cashusedinotheroperatingactivities | 302,274,673.41 | 222,082,917.91 |
| Subtotalofcashusedinoperatingactivities | 2,159,689,256.90 | 1,835,981,219.56 |
| Netcashgeneratedfrom/usedinoperatingactivities | 54,863,419.73 | 253,078,453.22 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,010,000,000.00 | 855,000,000.00 |
| Returnoninvestment | 18,887,391.07 | 45,708,640.27 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 71,055,306.33 | 38,250,224.61 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 1,099,942,697.40 | 938,958,864.88 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 7,558,187.67 | 8,002,707.77 |
| Paymentsforinvestments | 837,170,000.00 | 983,520,800.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 844,728,187.67 | 991,523,507.77 |
| Netcashgeneratedfrom/usedininvestingactivities | 255,214,509.73 | -52,564,642.89 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | ||
| Cashgeneratedfromotherfinancingactivities | 128,437,700.65 | |
| Subtotalofcashgeneratedfromfinancingactivities | 128,437,700.65 | |
| Repaymentofborrowings | ||
| Interestanddividendspaid | 7,056,925.07 | 18,348,005.18 |
| Cashusedinotherfinancingactivities | 110,000,000.00 | 80,503,408.97 |
| Subtotalofcashusedinfinancingactivities | 117,056,925.07 | 98,851,414.15 |
| Netcashgeneratedfrom/usedinfinancingactivities | -117,056,925.07 | 29,586,286.50 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 2,008,960.07 | -1,851,060.10 |
| 5.Netincreaseincashandcashequivalents | 195,029,964.46 | 228,249,036.73 |
| Add:Cashandcashequivalents,beginningoftheperiod | 704,659,776.14 | 476,410,739.41 |
| 6.Cashandcashequivalents,endoftheperiod | 899,689,740.60 | 704,659,776.14 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’Equity2023
Unit:RMB
| Item | 2023 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionof | |||||||||||||||
| previouserror | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 375,712.83 | 11,838,617.75 | 583,232.77 | 14,497,866.62 | 86,940,815.36 | 114,236,245.33 | -1,342,964.32 | 112,893,281.01 | |||||
| 3.1Totalcomprehensiveincome | 11,838,617.75 | 108,495,607.05 | 120,334,224.80 | 6,202,748.51 | 126,536,973.31 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 375,712.83 | 375,712.83 | -7,545,712.83 | -7,170,000.00 | |||||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | 375,712.83 | 375,712.83 | -7,545,712.83 | -7,170,000.00 | |||||||||
| 3.3Profitdistribution | 14,497,866.62 | -21,554,791.69 | -7,056,925.07 | -7,056,925.07 | |||||||||
| 3.3.1Appropriationtosurplusreserves | 14,497,866.62 | -14,497,866.62 | |||||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -7,056,925.07 | -7,056,925.07 | -7,056,925.07 | ||||||||||
| 3.3.4Other | |||||||||||||
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | 583,232.77 | 583,232.77 | 583,232.77 | ||||||||||
| 3.5.1Increaseintheperiod | 5,136,988.70 | 5,136,988.70 | 5,136,988.70 | ||||||||||
| 3.5.2Usedintheperiod | 4,553,755.93 | 4,553,755.93 | 4,553,755.93 | ||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 640,509,675.84 | 667,180,321.82 | 19,432,089.52 | 363,695,592.34 | 1,002,436,724.71 | 3,398,946,911.23 | 71,121,208.35 | 3,470,068,119.58 |
2022
Unit:RMB
| Item | 2022 | ||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Les | Othercomprehensive | Specificreserve | Surplusreserves | Gen | Retainedearnings | Other | Subtotal | |||
| Preferredshares | Perpetualbonds | Other | s:Treasurystock | income | eralreserve | ||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 640,676,218.40 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 872,212,354.88 | 3,077,550,018.33 | 19,424,230.98 | 3,096,974,249.31 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 640,676,218.40 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 872,212,354.88 | 3,077,550,018.33 | 19,424,230.98 | 3,096,974,249.31 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -542,255.39 | 149,330,204.52 | 35,906.71 | 15,053,237.26 | 43,283,554.47 | 207,160,647.57 | 53,039,941.69 | 260,200,589.26 | |||||||
| 3.1Totalcomprehensiveincome | 149,330,204.52 | 76,684,796.91 | 226,015,001.43 | 2,561,335.55 | 228,576,336.98 | ||||||||||
| 3.2Capitalincreasedandreducedbyowners | -542,255.39 | -542,255.39 | 50,478,606.14 | 49,936,350.75 |
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | -542,255.39 | -542,255.39 | 50,478,606.14 | 49,936,350.75 | ||||||
| 3.3Profitdistribution | 15,053,237.26 | -33,401,242.44 | -18,348,005.18 | -18,348,005.18 | ||||||
| 3.3.1Appropriationtosurplusreserves | 15,053,237.26 | -15,053,237.26 | ||||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -18,348,005.18 | -18,348,005.18 | -18,348,005.18 | |||||||
| 3.3.4Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredto |
| retainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | 35,906.71 | 35,906.71 | 35,906.71 | ||||||||||
| 3.5.1Increaseintheperiod | 4,877,232.12 | 4,877,232.12 | 4,877,232.12 | ||||||||||
| 3.5.2Usedintheperiod | 4,841,325.41 | 4,841,325.41 | 4,841,325.41 | ||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2023
Unit:RMB
| Item | 2023 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 659,418,700.67 | 0.00 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | ||||
| Add:Adjustmentforchangeinaccountingpolicy | 0.00 | |||||||||||
| Adjustmentforcorrectionofpreviouserror | 0.00 | |||||||||||
| Otheradjustments | 0.00 | |||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 659,418,700.67 | 0.00 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 11,838,617.75 | 161,936.68 | 14,497,866.62 | 123,423,874.52 | 149,922,295.57 | |||||||
| 3.1Totalcomprehensiveincome | 11,838,617.75 | 144,978,666.21 | 156,817,283.96 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||||
| 3.2.1Ordinaryshares | ||||||||||||
| increasedbyowners | |||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||
| 3.2.4Other | |||||
| 3.3Profitdistribution | 14,497,866.62 | -21,554,791.69 | -7,056,925.07 | ||
| 3.3.1Appropriationtosurplusreserves | 14,497,866.62 | -14,497,866.62 | |||
| 3.3.2Appropriationtoowners(orshareholders) | -7,056,925.07 | -7,056,925.07 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinowners’equity | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||
| 3.4.3Lossoffsetbysurplusreserves | |||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 161,936.68 | 161,936.68 | ||||||||
| 3.5.1Increaseintheperiod | 4,598,473.04 | 4,598,473.04 | ||||||||
| 3.5.2Usedintheperiod | 4,436,536.36 | 4,436,536.36 | ||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 659,418,700.67 | 0.00 | 667,180,321.82 | 19,010,793.43 | 363,695,592.34 | 996,592,057.25 | 3,411,589,972.51 |
2022
Unit:RMB
| Item | 2022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 659,418,700.67 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 756,037,052.58 | 2,980,117,198.30 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 659,418,700.67 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 756,037,052.58 | 2,980,117,198.30 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 149,330,204.52 | 35,906.71 | 15,053,237.26 | 117,131,130.15 | 281,550,478.64 | ||
| 3.1Totalcomprehensiveincome | 149,330,204.52 | 150,532,372.59 | 299,862,577.11 | ||||
| 3.2Capitalincreasedandreducedbyowners | |||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||
| 3.2.4Other | |||||||
| 3.3Profitdistribution | 15,053,237.26 | -33,401,242.44 | -18,348,005.18 | ||||
| 3.3.1Appropriationtosurplusreserves | 15,053,237.26 | -15,053,237.26 | |||||
| 3.3.2Appropriationtoowners(orshareholders) | -18,348,005.18 | -18,348,005.18 | |||||
| 3.3.3Other | |||||||
| 3.4Transferswithinowners’equity | |||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||
| 3.4.3Lossoffsetbysurplus |
| reserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 35,906.71 | 35,906.71 | ||||||||
| 3.5.1Increaseintheperiod | 4,877,232.12 | 4,877,232.12 | ||||||||
| 3.5.2Usedintheperiod | 4,841,325.41 | 4,841,325.41 | ||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 659,418,700.67 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
III.CompanyProfileChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)wasfoundedon5May1994,whichisacompanylimitedbysharespromotedsolelybyChangzhouDieselEnginePlantthroughtheapprovalbytheStateCommissionforRestructuringtheEconomicSystemswithdocumentTGS[1993]No.9on15January1993bywayofpublicofferingofshares.WiththeapprovedofthePeople’sGovernmentofJiangsuProvinceSZF[1993]No.67,aswellasreexaminedandapprovedbyChinaSecuritiesRegulatoryCommission(“CSRC”)throughdocumentZJFSZ(1994)No.9,theCompanyinitiallyissuedAsharestothepublicfrom15March1994to30March1994.AsapprovedbytheShenzhenStockExchangethroughdocumentSZSFZ(1994)No.15,suchtradablesharesofthepublicgotlistingon1July1994atShenzhenStockExchangewith“SuChangchaiA”forshortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).In1996,withtherecommendationoftheOfficeofthePeople’sGovernmentofJiangsuProvinceSZBH[1996]No.13,aswellasfirstreviewbyShenzhenMunicipalSecuritiesAdministrationOfficethroughSZBZ[1996]No.24,andapprovaloftheStateCouncilSecuritiesCommissionZWF[1996]No.27,theCompanyissued100millionBsharestoqualifiedinvestorson27August1996to30August1996,gettinglistedon13September1996.On9June2006,theCompanyheldashareholders’generalmeetingrelatedtoAsharesmarkettoexamineandapprovesharemergerreformplan,andperformedthesharemergerreformon19June2006.Asexaminedandapprovedatthe2
nd
ExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.Anon-publicofferingofupto168,412,297newshareswasdeliberatedonandapprovedasaresolutionofthe2020AnnualGeneralMeetingheldon7May2021andapprovedbytheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)issuedbyChangchaiCompanyLimitedtheChinaSecuritiesRegulatoryCommission.On16June2021,thecapitalverificationreport"S.G.W[2021]B062"wasissuedbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),confirmingthattheCompanyhadissued144,318,181RMBordinaryshares(Ashares)inanon-publicoffering,withanadditionalpaid-incapital(sharecapital)ofRMB144,318,181.ThetotalsharecapitaloftheCompanyafterthecapitalincreasewasRMB705,692,507.CredibilitycodeoftheCompany’sLicenseofBusinessCorporation:91320400134792410W.TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproductionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelofChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combineharvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsetsandshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedintheReportingPeriod.
TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,Foundry,MachineProcessingPlant,Single-cylinderEnginePlant,Multi-cylinderEnginePlant,MachineSetBusinessDepartmentandOverseasBusinessDepartmentintheCompany.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson10April2024.TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand8subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2023)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.ContinuationTheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthefinancialinstruments,withdrawalmethodofthebaddebtprovisionoftheaccountsreceivable,themeasurementoftheinventoryandthedepreciationofthefixedassetsetc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriodThefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.MethodsforDeterminingMaterialityStandardsandSelectionCriteria
?Applicable□Notapplicable
| Item | Materialitycriteria |
| Accountreceivablewithbaddebtprovisionbymajorsingleitem | AmountgreaterthanorequaltoRMB1,000,000.00 |
| Otherreceivableswithbaddebtprovisionbymajorsingleitem | AmountgreaterthanorequaltoRMB1,000,000.00 |
| Significantconstructioninprogress | AmountgreaterthanorequaltoRMB3,000,000.00 |
6.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthe
long-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)BusinesscombinationsnotunderthesamecontrolAbusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
7.CriteriaforJudgingControlandMethodsforPreparingConsolidatedFinancialStatements
(1)CriteriafordeterminingcontrolControlreferstotheauthorityheldbytheinvestorovertheinvestee,entailingparticipationinitsrelevantactivitiestoyieldvariablereturnsandthecapabilitytoinfluencetheinvestee'sreturnsthroughexercisingpoweroverit.TheCompanywilljudgewhethertheseentitieshavebeencontrolledbytheinvesteebasedonitscomprehensive
considerationofrelevantfactsandcircumstances.Shouldanychangesinsuchfactsandcircumstancesaltertheelementsdefiningcontrol,areassessmentispromptlyconducted.Relevantfactsandcircumstancesprimarilyencompass:
①Thepurposeoftheinvestee'sestablishment.
②Theinvestee'spertinentactivitiesanddecision-makingprocessestherein.
③Whethertherightsheldbytheinvestorcurrentlyenableittodominatetheinvestee'srelevantactivities.
④Whethertheinvestorgainsvariablereturnsthroughparticipatingintheinvestee'srelevantactivities.
⑤Theinvestor'scapacitytoinfluencetheinvestee'sreturnsthroughexercisingpoweroverit.
⑥Therelationshipbetweentheinvestorandotherentities.
(2)ConsolidationscopeTheconsolidationscopeoftheCompany'sconsolidatedfinancialstatementsisdeterminedbasedoncontrol,encompassingallsubsidiaries(includingseparatelycontrolledentitiesbytheCompany)intheconsolidatedfinancialstatements.
(3)CombinationprocedureTheCompanypreparesconsolidatedfinancialstatementsbasedonitsownandeachsubsidiary'sfinancialstatements,alongwithotherrelevantinformation.WhentheCompanypreparestheconsolidatedfinancialstatements,itshallregardtheentireGroupasanaccountingentity,andshallreflecttheoverallfinancialstatus,operatingresultsandcashflowsoftheGroupinaccordancewiththerequirementsforrecognition,measurementandpresentationoftherelevantaccountingstandardforbusinessenterprises,aswellasunifiedaccountingpolicies.AllsubsidiariesincludedintheconsolidationscopeoftheconsolidatedfinancialstatementsapplyaccountingpoliciesandaccountingperiodsconsistentwiththeCompany.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.Inpreparingtheconsolidatedfinancialstatements,transactionsbetweentheCompanyanditssubsidiaries,aswellasamongsubsidiariesthemselves,areoffsettoreflecttheirimpactontheconsolidatedbalancesheet,consolidatedincomestatement,consolidatedcashflowstatement,andconsolidatedstatementofchangesinequity.Iftherearedifferencesintherecognitionofthesametransactionwhenviewedfromtheperspectiveofthecorporategroup'sconsolidatedfinancialstatementscomparedtowhenviewedfromthestandpointoftheCompanyorasubsidiaryastheaccountingentity,adjustmentsaremadefromtheperspectiveofthecorporategroup.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodarerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.Forsubsidiariesacquiredthroughbusinesscombinationsundercommoncontrol,adjustmentstotheirfinancialstatementsarebasedontheirassets,liabilities(includinggoodwillarisingfromtheacquisitionbytheultimatecontroller),andtheircarryingvalueinthefinancialstatementsoftheultimatecontroller.
Forsubsidiariesacquiredthroughbusinesscombinationsnotundercommoncontrol,adjustmentstotheirfinancialstatementsarebasedonthefairvalueofidentifiablenetassetsasoftheacquisitiondate.
①AdditionofsubsidiariesorbusinessesIfsubsidiariesorbusinessesareaddedthroughbusinesscombinationsundercommoncontrolduringtheReportingPeriod,adjustmentsaremadetotheopeningbalancesoftheconsolidatedbalancesheet.Theincome,expenses,andprofitsofthesubsidiariesorbusinessesfromthebeginningofthecurrentperiodtotheendoftheReportingPeriodareincludedintheconsolidatedincomestatement.ThecashflowsofthesubsidiariesorbusinessesfromthebeginningofthecurrentperiodtotheendoftheReportingPeriodareincludedintheconsolidatedcashflowstatement.Comparativeitemsinthefinancialstatementsareadjustedaccordingly,treatingthereportingentityafterthecombinationasifithadexistedsincethedatewhencontrolwasobtainedbytheultimatecontroller.Ifcontroloveraninvesteeundercommoncontrolisachievedduetothereasonssuchastheadditionalinvestment,adjustmentsaremadeasifallpartiesparticipatinginthemergerexistedintheircurrentstatefromthedatewhencontrolwasobtainedbytheultimatecontroller.Fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.DuringtheReportingPeriod,ifthereisanincreaseinsubsidiariesorbusinessesduetobusinesscombinationsnotundercommoncontrol,theopeningbalancesoftheconsolidatedbalancesheetarenotadjusted.Theincome,expenses,andprofitsofthesubsidiaryorbusinessfromtheacquisitiondatetotheendoftheReportingPeriodareincludedintheconsolidatedincomestatement.ThecashflowsofthesubsidiaryorbusinessfromtheacquisitiondatetotheendoftheReportingPeriodareincludedintheconsolidatedcashflowstatement.Intheeventofacquiringcontroloveraninvesteepreviouslynotundercommoncontrolduetoadditionalinvestmentsorsimilarreasons,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
②DisposalofsubsidiariesorbusinessesA.GeneraldisposalmethodsDuringtheReportingPeriod,iftheCompanydisposesofasubsidiaryorbusiness,theincome,expenses,andprofitsofthesubsidiaryorbusinessfromthebeginningoftheperiodtothedisposaldateareincludedintheconsolidatedincomestatement.Thecashflowsofthesubsidiaryorbusinessfromthebeginningoftheperiodtothedisposaldateareincludedintheconsolidatedcashflowstatement.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasis
fromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.B.DisposalofsubsidiariesstepbystepIftheclauses,conditions,andeconomicimpact,bywhichtheequityinvestmentsofasubsidiaryweredisposedofstepbystepthroughmultipletransactionsuntilthecontrolwaslost,andthevarioustransactionsintheequityinvestmentsofasubsidiaryweredisposedof,fellunderoneormoreofthefollowingcircumstances,themultipletransactionsweregenerallyregardedasa"PackageDeal":
a.Thesetransactionsarereachedconcurrentlyoraftertheimpactthereofoneachotheristakenintoconsideration.b.Thesetransactionsmightachieveacompletebusinessresultonlyasawhole;c.Theoccurrenceofatransactiondependsontheoccurrenceof,ataminimum,oneanothertransaction;and/ord.Atransactionisconsidereduneconomicalseparatelybutisconsideredeconomicalwhenothertransactionsarealsotakenintoconsideration.Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
③AcquisitionofminorityequityofsubsidiariesThebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thesharepremiumofcapitalreserveswithintheconsolidatedbalancesheetshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted.
④TheCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthemInthecaseofpartialdisposaloflong-termequityinvestmentsinasubsidiarywithoutlossofcontrol,thedifferencebetweenthedisposalproceedsobtainedandtheproportionateshareofnetassetsofthesubsidiarycontinuouslycalculatedfromthepurchasedateormergerdatecorrespondingtothedisposaloflong-termequityinvestmentsisadjustedinthesharepremiumwithintheconsolidatedbalancesheet.Ifthesharepremiuminthecapitalreserveisinsufficienttooffsetthedifference,adjustmentsaremadetoretainedearnings.
8.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheGroupclassifiesjointarrangementsintojointoperationsandjointventures.AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejoint
arrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.
9.RecognitionStandardforCashandCashEquivalentsIntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
10.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessConcerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintotherecordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankofChinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchangesshallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshallbeconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedbythePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamountconvertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currencyamountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbytheforeign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleofcapitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecordedintotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currencynon-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchangegain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothegain/lossofthecurrentperiod.
(2)TranslationofforeigncurrencyTheassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andthe
revenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
11.FinancialInstruments
(1)ClassificationofFinancialInstrumentsTheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:
financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)andfinancialassetsatfairvaluethroughprofitorlossFinancialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①FinancialassetsmeasuredatamortizedcostFinancialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.ForaccountsreceivableexcludingsignificantfinancingandaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,theinitialmeasurementshallbemadeatthecontracttransactionprice.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenrecoveredordisposed,thedifferencebetweenthepriceobtainedandthecarryingvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
②Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)includeaccountsreceivablefinancingandinvestmentinotherdebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueexceptforinterestcalculatedwithactualrates,impairmentlossesorgainsandexchangegainsorlossesshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintothecurrentprofitorloss.
③Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)includeinvestmentinotherequityinstruments,etc.whichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueshallberecordedintoothercomprehensiveincome.Thedividendsobtainedshallberecordedintothecurrentprofitorloss.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintoretainedearnings.
④FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
⑤Financialliabilitiesatfairvaluethroughprofitorloss
Financialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandderivativefinancialliabilitieswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialliabilitiesshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthecarryingvalueandthepaidconsiderationshallberecordedintothecurrentprofitorloss.
⑥FinancialliabilitiesatamortizedcostFinancialliabilitiesatamortizedcostincludeshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayableswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthepaidconsiderationandthecarryingvalueofthefinancialliabilitiesshallberecordedintothecurrentprofitorloss.
(3)RecognitionBasisandMeasurementofTransferofFinancialAssetsWheretheCompanyhastransferrednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethetransferredfinancialasset.WheretheCompanydoesnottransferorretainnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itshalldealwithitaccordingtothecircumstancesasfollows,respectively:(1)Ifitgivesupitscontroloverthefinancialasset,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities;(2)Ifitdoesnotgiveupitscontroloverthefinancialasset,itshall,accordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset,recognizetherelatedfinancialassetandrecognizetherelevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueofthetransferredfinancialassetonthederecognitiondate;(2)Thesumofconsiderationreceivedfromthetransferoffinancialassets,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,theentirecarryingvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped,beapportionedaccordingtotheirrespectiverelativefairvalueonthetransferdate,andthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueoftheportionwhoserecognitionhasbeenstopped;(2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstopped,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.
(4)DerecognitionBasisofFinancialLiabilitiesAfinancialliabilityorpartofitcanbederecognizedafteritscurrentobligationhasbeenrelievedinfullorinpart.
(5)RecognitionofFairValueofFinancialAssetsandFinancialLiabilitiesThefairvalueoffinancialinstrumentswithanactivemarketisdeterminedbythequotedpriceintheactivemarket.Forfinancialinstrumentswithoutactivemarket,thefairvalueisdeterminedbyvaluationtechniques.TheCompanyadoptsthevaluationtechniquesapplicabletothecurrentconditionswhicharesupportedbysufficient
dataandotherinformationforvaluation,andselectstheinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinassetorliabilitytransactions,withprioritytoobservableinputvalues.Unobservableinputvaluesareusedonlywhenrelevantobservableinputvaluesarenotavailableorpractical.
(6)Impairmentoffinancialinstrument
①ImpairmentmeasurementandaccountinghandlingoffinancialinstrumentBasedonexpectedcreditloss,theCompanyconductsimpairmenthandlingandconfirmscreditimpairmentlossforfinancialassetswhichismeasuredbyamortizedcost,debtinstrumentinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,financialguaranteecontract.Expectedcreditlossreferstoweightedaverageofcreditlossoffinancialinstrumentwhichtakestheriskofcontractbreachoccurrenceastheweight.Creditlossreferstothedifferencebetweenallcontractcashflowwhichisconvertedintocashaccordingtoactualinterestrateandreceivableaccordingtocontractandallcashflowwhichtobechargedasexpected,i.e.currentvalueofallcashshortage.Amongit,asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,itshouldbeconvertedintocashaccordingactualinterestrateofthisfinancialassetaftercreditadjustment.Lifetimeexpectedcreditlossesrefertothosecausedbypossibledefaultsduringtheentireexpecteddurationofafinancialinstrument.Theexpectedcreditlossesinthenext12monthsreferstothosecausedbythedefaulteventsofthefinancialinstrumentthatmayoccurwithin12months(ortheexpecteddurationiftheexpecteddurationofthefinancialinstrumentislessthan12months)afterthebalancesheetdate,andispartoftheexpectedcreditlossesintheentireduration.Oneachbalancesheetdate,theCompanyrespectivelymeasuredtheexpectedcreditlossesoffinancialinstrumentsindifferentstages.Ifthecreditriskofafinancialinstrumenthashadnosignificantincreasesinceitsinitialrecognition,theinstrumentshallfallinthefirststage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesinthefuture12months.Ifthecreditriskofafinancialinstrumenthashadasignificantincreasesinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,theinstrumentshallfallinthesecondstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Ifthecreditimpairmenthasoccurredsinceitsinitialrecognition,thefinancialinstrumentshallfallinthethirdstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Asforafinancialinstrumentwithlowcreditrisksonthebalancesheetdate,theCompanymeasuredthelossreservesaccordingtotheexpectedcreditlossesinthefuture12months,assumingthatitscreditriskhashadnosignificantincreasesinceitsinitialrecognition.Forfinancialinstrumentswithlowcreditrisksinstages1and2,theCompanycalculatedtheinterestincomeattheeffectiveinterestrateandonthecarryingamountoftheinstrumentswithoutdeductionsforprovisionsforassetimpairment.Forfinancialinstrumentsinstage3,interestincomewascalculatedattheeffectiveinterestratesandontheamortizedcostbyreducingtheprovisionsforassetimpairmentfromthecarryingamount.Fornotesreceivables,accountsreceivables,andfinancingreceivables,whethertherewasasignificantfinancialcomponentornot,theCompanymeasuredthelossreservesbasedontheexpectedcreditlossesfortheentireduration.A.AccountsreceivableFornotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingwithobjectiveevidenceindicatingimpairmentandthosesuitableforindividualevaluation,theCompanycarriesoutimpairmenttestseparatelytoconfirmexpectedcreditlossandprepareprovisionforimpairmentofsingleitems.Fornotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancing,contractassetsandlong-term
receivableswithoutobjectiveevidenceofimpairment,orasinglefinancialassetwithexpectedcreditlossimpossibletobeassessedatareasonablecost,theCompanydividesthenotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingintogroupsaccordingtothecharacteristicsofcreditrisk,andcalculatestheexpectedcreditlossbasedonreceivablegroups.Thebasisforrecognizinggroupsisasfollows:
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Group1ofnotesreceivable | Allcommercialbills | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Group2ofnotesreceivable | Bank’sacceptancebillswithlowcreditrating | |
| Accountsreceivablefinancing | Bank’sacceptancebillswithhighcreditrating | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Accountsreceivable-creditriskcharacteristicsgroup | Accountsreceivableportfoliowithcreditperiod | Preparethecomparativelistbetweenagingofaccountsreceivableandexpectedcreditlossrateovertheentirelifeandcalculatetheexpectedcreditlossbyconsultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation.TheCompanytakesagingascreditriskcharacteristicsgroupsandcalculatestheexpectedcreditlossforaccountsreceivable. |
| Accountsreceivable-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Basisforrecognizinggroupsofotherreceivablesisasfollows:
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Group1ofotherreceivables | Otherreceivablesexcludingthosefromrelatedparties-aginggroup | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
| Group2ofotherreceivables | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
12.AccountsReceivableSee“11.FinancialInstruments”.
13.AccountsReceivableFinancingSee“11.FinancialInstruments”.
14.OtherReceivablesSee“11.FinancialInstruments”.
15.ContractAssetsContractAssetsmeansthattheCompanyisendowedwiththerighttochargetheconsiderationthroughtransferringanycommodityorservicetotheclient,andsuchrightdependsonotherfactorsexceptthepassingoftime.TheCompany’sunconditionalright(onlydependingonthepassingoftime)ofchargingtheconsiderationfromtheclientshallbeseparatelypresentedasreceivables.TherecognitionmethodandaccountingtreatmentmethodoftheestimatedcreditlossofcontractassetsareconsistentwiththatspecifiedinNotesV.11.
16.Inventory
(1)CategoryofInventoryInventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumedintheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtherawmaterials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourcedetc.
(2)PricingmethodPurchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthedispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproductsaccordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)DeterminationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionforfallingpriceofinventoryAtthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.Whenalltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingpricereserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,theinventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Ofwhich:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchasthefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproducts
minusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
17.AssetsHeldforSale
(1)ClassificationunderheldforsalerecognitioncriteriaTheCompanyconfirmscertainnon-currentassetsordisposalgroupsasheldforsalewhentheysimultaneouslymeetthefollowingconditions:
①Theycanbesoldimmediatelyintheircurrentcondition,followingthecustomarypracticesobservedinsimilartransactions;and
②Thesaleishighlyprobable,meaningtheCompanyhasresolvedtoexecuteasalesplan,obtainedregulatoryapproval(whereapplicable),secureddefinitepurchasecommitments,andanticipatescompletionofthesalewithinoneyear.AdefinitepurchasecommitmentreferstoalegallybindingpurchaseagreementbetweentheCompanyandanotherparty.Thisagreementencompassesessentialtermssuchasthetransactionprice,timing,andsufficientlystringentpenaltyclausesforbreach,minimizingthelikelihoodofsignificantadjustmentsorcancellation.
(2)AccountingtreatmentforheldforsaleassetsTheCompanydoesnotdepreciateoramortizenon-currentassetsordisposalgroupsclassifiedasheldforsale.Iftheircarryingamountexceedsthenetamountderivedfromsubtractingthefairvaluelesssellingcosts,thecarryingamountshouldbewrittendowntothenetamount.Thewritten-downamountisrecognizedasanimpairmentloss,reflectedinthecurrentperiod'sincomestatement,whilealsoestablishingaprovisionforimpairmentofheldforsaleassets.Non-currentassetsordisposalgroupsclassifiedasheld-for-saleonthedateofacquisitionshallbemeasuredatthelowerofnetamountofinitialmeasurementamountminussalescostandthatoffairvalueminussellingexpenses,assumingtheywerenotclassifiedasheld-for-saleduringinitialmeasurement.Theaforementionedprinciplesapplytoallnon-currentassets,excludinginvestmentpropertiesmeasuredusingthefairvaluemodel,biologicalassetsmeasuredatfairvaluelesssellingcosts,assetsarisingfromemployeebenefits,deferredtaxassets,financialassetsgovernedbyaccountingstandardsrelatedtofinancialinstruments,andrightsarisingfrominsurancecontractsregulatedbyaccountingstandardsrelatedtoinsurancecontracts.
18.Long-termEquityInvestments
(1)JudgmentstandardofjointcontrolandsignificantinfluencesJointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)RecognitionforinitialinvestmentcostTheinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeansTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)AninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethodWheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentity
shallbeitssubsidiarycompany.
2)AninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethodWheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheCompany,shouldbeadjustedaccordingtotheaccountingpoliciesoftheCompanyandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheCompanyaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theCompanyshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallbe
recordedintoowners’equity.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoowners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheCompanyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionofthe
investees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
19.InvestmentRealEstateMeasurementmodeofinvestmentrealestate:
MeasurementofcostmethodDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
20.FixedAssets
(1)RecognitionConditionsFixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
| Categoryoffixedassets | Method | Usefullife | Annualdeprecation |
| Housingandbuilding | Averagemethodofusefullife | 20-40years | 2.50%-5% |
| Machineryequipment | Averagemethodofusefullife | 6-15years | 6.67%-16.67% |
| Transportationequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
| Otherequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLeaseTheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
1)Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevantconditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscouldbetransferredtotheCompany;
2)TheCompanyownsthechoosingrightforpurchasingandleasingthefixedassets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinanceleasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyontheleasestartingdate;
3)Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%oraboveoftheusefullifeoftheleasefixedassets;
4)ThecurrentvalueoftheminimumleasepaymentontheleasestartingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;
5)ThenatureoftheleaseassetsisspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.Thefixedassetsbyfinanceleaseshouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumleasepaymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedastheentryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancingexpense.Fortheinitialdirectexpensesoccurintheleasenegotiationsandthesigningprocessoftheleasecontractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedbyadoptingtheactualinterestrateduringtheperiodoftheleaseterm.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife
21.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
22.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)TheperiodofcapitalizationofborrowingcostsTheborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesand
inventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
23.IntangibleAssets
(1)UsefulLifeandtheBasisforitsDetermination,Estimation,AmortizationMethodologyorReviewProcedures
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)AmortizationmethodandtermofintangibleassetsAsfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)TheScopeofR&DExpenditureCollectionandtheRelatedAccountingTreatmentTheinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.TheCompanycollectsthecostsofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentcostsforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentcostsoftheintangibleassetscanbereliablymeasured.
24.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusiness
reputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
25.Long-termDeferredExpensesLong-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
26.ContractLiabilitiesContractliabilitiesrefertotheCompany’sobligationsintransferringcommoditiesorservicestotheclientforthereceivedorpredictedconsideration.Contractassetsandcontractliabilitiesunderthesamecontractshallbepresentedbasedonthenetamount.
27.EmployeeBenefits
(1)AccountingTreatmentofShort-termCompensationShort-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemissionTheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.DefinedcontributionplansDuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
28.Provisions
(1)CriteriaofprovisionsOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)MeasurementofprovisionsTheCompanyshallmeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.TheCompanyshallcheckthebookvalueoftheprovisionsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
29.RevenueAccountingpoliciesforrecognitionandmeasurementofrevenue:
WhentheCompanyfulfillsitsdueperformanceobligations(namelywhentheclientobtainsthecontroloverrelatedcommoditiesorservices),revenuesshallberecognizedbasedontheobligation’samortizedtransactionprice.PerformanceObligationreferstotheCompany’spromiseoftransferringcommoditiesorservicesthatcanbeclearlydefinedtotheclient.TransactionPricereferstotheconsiderationamountdulychargedbytheCompanyfortransferringcommoditiesorservicestotheclient,excludinganyamountchargedbythethirdpartyandanyamountpredictedtobereturnedtotheclient.ControlOverRelevantCommoditiesmeansthattheuseofcommoditiescanbecontrolledandalmostalleconomicinterestscanbeobtained.Onthecontractcommencementday,theCompanyshallevaluatethecontract,recognizeindividualperformanceobligationandconfirmthatindividualperformanceobligationisfulfilledinacertainperiod.Whenoneofthefollowingconditionsismet,suchperformanceobligationshallbedeemedasfulfilledinacertainperiod,andtheCompanyshallrecognizeitasrevenuewithinacertainperiodaccordingtotheperformanceschedule:(1)theclientobtainsandconsumestheeconomicinterestsresultingfromtheCompany’sperformanceofcontractwhileperformingthecontract;(2)theclientisabletocontrolthecommoditiesunderconstructionduringtheperformance;(3)commoditiesproducedbytheCompanyduringtheperformancepossesstheirreplaceablepurpose,andtheCompanyhastherighttochargeallfinishedpartsduringthecontractperiod;otherwise,theCompanyshallrecognizetherevenuewhentheclientobtainsthecontroloverrelevantcommoditiesorservices.TheCompanyshalladopttheInputMethodtodeterminethePerformanceSchedule.Namely,thePerformanceScheduleshallbedeterminedaccordingtotheCompany’sinputforfulfillingperformanceobligations.Whenthe
PerformanceSchedulecannotbereasonablydeterminedandallresultingcostsarepredictedtobecompensated,theCompanyshallrecognizetherevenuebasedontheresultingcostamounttillthePerformanceSchedulecanbereasonablydetermined.Whenthecontractinvolvestwoormorethantwoperformanceobligations,thetransactionpriceshallbeamortizedtoeachsingleperformanceobligationonthecontractcommencementdayaccordingtotherelativeproportionoftheindependentsellingpriceofcommoditiesorservicesundereachsingleperformanceobligation.Ifanysolidevidenceprovesthatthecontractdiscountorvariableconsiderationonlyrelatestooneormorethanone(notall)performanceobligationunderthecontract,theCompanyshallamortizethecontractdiscountorvariableconsiderationtooneormorethanonerelatedperformanceobligations.IndependentsellingpricereferstothepriceadoptedbytheCompanytoindependentlysellcommoditiesorservicestotheclient.However,independentsellingpricecannotbedirectlyobserved.TheCompanyshallestimatetheindependentsellingpricebycomprehensivelyconsideringallrelatedinformationthatcanbereasonablyobtainedandmaximallyadoptingtheobservableinputvalue.VariableConsiderationIfanyvariableconsiderationexistsinthecontract,theCompanyshalldeterminetheoptimalestimationofthevariableconsiderationbasedontheexpectedvaluesorthemostpossibleamount.Thevariableconsideration’stransactionpriceshallbeincludedwithoutexceedingthetotalrevenueamountrecognizedwithouttheriskofsignificantrestitutionwhenalluncertaintiesareeliminated.Oneachbalancesheetday,theCompanyshallre-estimatethevariableconsiderationamounttobeincludedinthetransactionprice.ConsiderationPayabletotheClientIfanyconsiderationpayabletotheclientexistsinthecontract,theCompanyshallusesuchconsiderationtooffsetthetransactionpriceunlesssuchconsiderationispaidforacquiringotherclearly-definedcommoditiesorservicesfromtheclient,andwritedownthecurrentrevenueatthelatertimebetweenthetimeofrecognizingrelevantrevenuesandthetimeofpaying(orpromisingthepayment)theconsiderationtotheclient.SaleswiththeQualityAssuranceForsaleswiththeQualityAssurance,iftheQualityAssuranceinvolvesanotherseparateserviceexceptfortheguaranteeofallsoldcommoditiesorservicesmeetingallestablishedstandards,theQualityAssuranceshallconstituteasinglePerformanceObligation;otherwise,theCompanyshallmakecorrespondingaccountingtreatmenttotheQualityAssuranceaccordingtoASBENo.13--Contingency.MainResponsibilityPerson/AgentAccordingtowhetherthecontrolovercommoditiesorservicesisobtainedbeforetheyaretransferredtotheclient,theCompanycanjudgewhetheritisMainResponsibilityPersonorAgentbasedonitsstatusduringthetransaction.IftheCompanycancontrolcommoditiesorservicesbeforetheyaretransferredtotheclient,theCompanyshallbeMainResponsibilityPerson,andrevenuesshallberecognizedaccordingtothetotalconsiderationamountreceivedortobereceived;otherwise,theCompanyshallbeAgent,andrevenuesshallberecognizedaccordingtothecommissionorservicefeespredictedtobedulycharged.However,suchamountshallbedeterminedbasedonthenetamountafterdeductingotheramountspayabletootherrelatedpartiesfromthetotalconsiderationreceivedortobedulyreceivedorthefixedcommissionamountorproportion.SpecificmethodsThespecificmethodsoftheCompany'srevenuerecognitionareasfollows:
ThesalecontractbetweentheCompanyanditscustomersusuallycontainsonlytheperformanceobligationforthetransferofgoods,whichissatisfiedatapointintime.Thefollowingrequirementsmustbemettoconfirmtherevenueofdomesticproducts:TheCompanyhas
deliveredthegoodstothecustomerinaccordancewiththecontractandthecustomerhasacceptedthegoods.Thepaymenthasbeenrecoveredorthereceiptvoucherhasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.Thecustomerhasobtainedcontroloftherelevantgoods.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.Thefollowingrequirementsmustbemettoconfirmtherevenueofexportproducts:TheCompanyhasdeclaredtheproductsinaccordancewiththecontract,obtainedthebillsoflading,andreceivedthepaymentorobtainedthereceiptvoucherandtherelatedeconomicbenefitsarelikelytoflowin.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.InterestRevenueInterestRevenueshallbedeterminedaccordingtothetimeoftheCompany’suseofmonetarycapitalandtheactualinterestrate.
30.ContractCosts
(1)CostsfromAcquiringContractIftheincrementalcostresultingfromtheCompany’sacquiringofcontract(namelycostsmerelyresultingfromtheacquiringofcontract)ispredictedtoberetrieved,itshallberecognizedasanassets,amortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Iftheassets’amortizationperioddoesnotexceedoneyear,itshallbeimmediatelyincludedintothecurrentprofitandloss.OtherexpensesresultingfromtheCompany’sacquiringofcontractshallalsobeincludedintothecurrentprofitandlossunlessitisexplicitlybornebytheclient.
(2)CostsfromExecutingContractTheCompany’scostsfromexecutingcontractisnotcoveredbyotherASBEexceptforRevenueStandards,andwhenthefollowingsituationsaremet,suchcostscanberecognizedasanassets:①thecostsaredirectlyrelatedtoacurrentorpredictedcontract;②thecostsincreasetheCompany’sresourcesappliedtofulfillperformanceobligationsinthefuture;③thecostsarepredictedtoberetrieved.Therecognizedassetsshallbeamortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Ifthebookvalueofcontractcostsishigherthanthedifferenceofthefollowingtwoitems,correspondingdepreciationreservesshallbecountedandwithdrawnanditshallberecognizedastheassetsdepreciationloss:①theresidualconsiderationpredictedtobeacquiredbytransferringcommoditiesrelatedtotheassets;②thecostspredictedtooccurduetothetransferofrelatedcommodities.Ifthedifferencebetween①and②ishigherthanthebookvalueofcontractcostsduetoanychangeinvariousfactorscausingdepreciationinpreviousperiods,itshallberestitutedtothewithdrawnassetsdepreciationreservesandincludedinthecurrentprofitandloss.However,thebookvalueofrestitutedcontractcostsshallnotexceedthebookvalueoftheassetsonthedayofrestitutionbasedonthehypothesisthatdepreciationreservesarenotcountedandwithdrawn.
31.GovernmentGrants
(1)TypeAgovernmentgrantmeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentgrantsconsistofthegovernmentgrantspertinenttoassetsandgovernmentgrantspertinenttoincomeaccordingtotherelevantgovernmentdocuments.
Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisoftheCompanyclassifiesthegovernmentgrantspertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidiesThegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentgrantsaswellascouldbeacquired.Ifthegovernmentgrantsarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentgrantsarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatmentThegovernmentgrantspertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentgrantspertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,andshallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.Forgovernmentgrantsthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.GovernmentgrantsrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.Thegovernmentgrantsrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentgrantsassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.
32.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)BasisofrecognizingthedeferredincometaxassetsAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,adeferredtaxassetshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)BasisofrecognizingthedeferredincometaxliabilitiesAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtax
liabilityshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
33.Lease
(1)AccountingtreatmentforleasesasthelesseeOnthebeginningdateoftheleaseterm,theCompanywillrecognizetheleasewithaleasetermnotexceeding12monthsandexcludethepurchaseoptionasashort-termlease.Leaseswithlowervaluewhenasingleleasedassetisabrand-newassetareidentifiedaslow-valueassetleases.IftheCompanysubletsorexpectstosublettheleasedassets,theoriginalleaseshallnotbedeemedasalow-valueassetlease.TheCompanyrecordsthepaymentsofshort-termandlow-valueassetleasesincurredduringeachperiodoftheleasetermintherelevantassetcostsortheprofitorlossforthecurrentperiodbythestraight-linemethod.TheCompanywillrecognizeright-of-useassetsandleaseliabilitiesontheinceptiondateoftheleaseterm,excludingtheaboveshort-termandlow-valueassetleases.
①Right-of-useassetsTheright-of-useassetismeasuredatcostandthecostshallcomprise:
A.theamountoftheinitialmeasurementoftheleaseliabilities;B.anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived;C.anyinitialdirectcostsincurredbythelessee;D.anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.TheCompanydepreciatestheright-of-useassetusingthestraight-linemethod.Ifitisreasonablycertainthatownershipoftheleasedasset(s)willbeobtainedattheendoftheleaseterm,theCompanydepreciatestheleasedasset(s)overits/theirremainingservicelife.Ifitisnotreasonablycertainthattheownershipoftheleaseholdpropertywillbeobtainedattheendoftheleaseterm,theCompanywilldepreciatetheleasedasset(s)overtheleasetermortheremainingservicelife,whicheverisshorter.
②LeaseliabilitiesAtthecommencementdate,theCompanymeasurestheleaseliabilitiesatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,TheCompanyusestheinterestrateimplicitinleaseastherateofdiscountwhencalculatingthepresentvalueoftheleasepayments.Theincrementalinterestrateonborrowingofthelesseewillbeusedastherateofdiscount,iftheinterestrateimplicitinleasecannotbedetermined.Thedifferencebetweentheleasepaymentanditspresentvalueisregardedasanunrecognizedfinancingexpense.Interestexpenseisrecognizedatthediscountrateofthepresentvalueoftherecognizedleasepaymentduringeachperiodoftheleasetermandisrecordedintheprofitandlossforthecurrentperiod.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilitiesareincludedincurrentprofitorlosswhenactuallyincurred.Afterthecommencementdate,ifthereisachangeinthefollowingitems:(a)actualfixedpayments;(b)amountsexpectedtobepayableunderresidualvalueguarantees;(c)anindexorarateusedtodetermineleasepayments;(d)assessmentresultorexerciseofpurchaseoption,extensionoptionorterminationoption.,theCompanyremeasurestheleaseliabilitiesbasedonthepresentvalueofleasepaymentsafterchanges,andadjuststhecarryingamountoftheright-of-useassetaccordingly.Ifthecarryingamountoftheright-of-useassetisreducedtozerobutthereshallbeafurtherreductionintheleaseliabilities,theremainingamountshallberecognizedintoprofitorloss.
(2)AccountingtreatmentofleasesasthelessorTheCompanyaslessorOnthestartdateoftheleaseterm,theCompanydividestheleasethatsubstantiallytransfersalmostallrisksandrewardsrelatedtotheownershipoftheleasedassetsintofinanceleases,exceptforoperatingleases.
①OperatingleaseTheCompanyrecognizestheleasepaymentsreceivableasrentalearningsineachperiodwithintheleasetermonastraight-linebasis.Theinitialdirectcostsrelatedtotheoperatingleasearecapitalized,amortizedwithintheleasetermonthesamebasisastherecognitionofrentalearnings,andincludedintheprofitorlossforthecurrentperiod.VariableleasepaymentsobtainedbytheCompanyinrelationtooperatingleasesthatarenotincludedintheleasereceivableareincludedintheprofitorlossforthecurrentperiodwhentheyareactuallyincurred.
②FinancialleaseAtthecommencementdate,theCompanyrecognizesthefinanceleasepaymentreceivablebasedonthenetinvestmentinthelease(sumofthepresentvalueofunguaranteedresidualvalueandleasereceiptsthatarenotreceivedatthecommencementdate,discountedbytheinterestrateimplicitinthelease),andderecognizesassetsheldunderthefinancelease.TheCompanycalculatesandrecognizesinterestincomeusingtheinterestrateimplicitintheleaseovertheleaseterm.Variableleasepaymentsnotincludedinthemeasurementofthenetinvestmentintheleasearechargedasprofitorlossintheperiodsinwhichtheyareincurred.
34.OtherSignificantAccountingPoliciesandAccountingEstimatesTheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
(1)ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforotherreasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.
(2)MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrent
conditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.
(3)InventoryfallingpricereservesTheCompanyfollowstheinventoryaccountingpolicyandcarriesoutmeasurementbasedonwhichissmallerbetweenthecostandthenetrealizablevalue.Ifthecostofinventoriesishigherthanitsnetrealizablevalue,thentheinventoryfallingpricesreserveswereimplemented.Theimpairmentofinventoriestonetrealizablevalueisbasedonanassessmentofthemarketabilityoftheinventoriesandtheirnetrealizablevalue.Themanagementshalldeterminetheimpairmentofinventoriesafterobtainingreliableevidencewhiletakingintoaccountthepurposeofholdinginventories,theeffectofitemsafterthebalancesheetdate,andotherfactors.Differencesbetweenactualresultsandoriginalestimateswillaffectthecarryingvalueofinventoriesandtheprovisionorreversalofreversesforfallingpricesofinventoriesintheperiodinwhichtheestimatesarechanged.
(4)DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
(5)Reservesforlong-termassetsimpairmentTheCompanydeterminesatthebalancesheetdatewhetherthereisanyindicationthatanon-currentasset,otherthanafinancialasset,maybeimpaired.Forintangibleassetswithanuncertainusefullife,impairmenttestsshallbeconductedwhenthereisanindicationofimpairmentbesidestheannualimpairmenttest.Othernon-currentassetsotherthanfinancialassetsshallbetestedforimpairmentwhenthereisanindicationthatthecarryingamountisirrecoverable.Animpairmentisindicatedwhenthecarryingamountofanassetorassetgroupisgreaterthantherecoverableamount,whichisthehigherofthefairvalueminusdisposalexpensesandthepresentvalueofestimatedfuturecashflows.Thenetvalueofthefairvalueminusdisposalexpensesisdeterminedbyreferringtothenegotiablesalepriceorobservablemarketpriceofsimilarassetsinafairtransactionanddeductingincrementalcostsdirectlyattributabletothedisposaloftheasset.Estimatingthepresentvalueoffuturecashflowsrequiressignificantjudgmentswithrespecttotheproductionvolumeoftheasset(orassetgroup),thesellingprice,therelatedoperatingcostsandthediscountrateusedincalculatingthepresentvalue.TheCompanyusesallavailablerelevantinformationinestimatingrecoverableamounts,includingprojectionsofvolumes,sellingpricesandrelatedoperatingcostsbasedonreasonableandsupportableassumptions.
(6)DepreciationandamortizationTheCompanydepreciatesandamortizesinvestmentproperties,fixedassetsandintangibleassetsonastraight-linebasiswithintheirservicelivesaftertakingintoaccounttheirresidualvalues.TheCompanyregularlyreviewsservicelivestodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.TheservicelifeisdeterminedbytheCompanybasedonpastexperiencewithsimilarassetsandexpectedtechnologicalupdates.Depreciationandamortizationexpenseswillbeadjustedinthefutureperiodifthereisa
significantchangeinpreviousestimates.
(7)DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.
(8)IncometaxInthenormaloperatingactivitiesoftheCompany,theultimatetaxtreatmentandcalculationofcertaintransactionsaresubjecttocertainuncertainties.Whethersomeitemscanbedisbursedbeforetaxrequirestheapprovalofthetaxauthorities.Ifthefinaldeterminationofthesetaxmattersdiffersfromtheamountsinitiallyestimated,thedifferencewillhaveanimpactoncurrentanddeferredincometaxesintheperiodinwhichtheyarefinallydetermined.
35.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
Unit:RMB
| Changestotheaccountingpoliciesandwhy | Nameofreportitemsthataresignificantlyaffected | Affectedamount |
| TheCompanystartstoimplementthe“accountingtreatmentfordeferredincometaxrelatingtoassetsandliabilitiesarisingfromasingletransactionthatisnotsubjecttotheinitialrecognitionexemption”stipulatedintheAccountingStandardsforBusinessEnterprisesInterpretationNo.16issuedbytheMinistryofFinanceon13November2022since1January2023. | N/A | 0.00 |
Descriptionofchangesinaccountingpolicies:
(1)TheimpactofimplementingtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprisesontheCompanyOn13December2022,theMinistryofFinanceissuedtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprises(CaiKuai[2022]No.31,hereinafterreferredtoas"InterpretationNo.16").Since1January2023,thestipulationof"theaccountingprocessingofinitialrecognitionexemptionisnotapplicabletodeferredincometaxrelatedtoassetsandliabilitiesarisingfromindividualtransactions"hasbeenimplemented,allowingenterprisestoexecuteitaheadofschedulefortheirownannualrelease.TheaccountingprocessingrelatedtothismatterthatwasnotimplementedinadvancebytheCompanyin2023willbeimplementedfrom1January2023.InterpretationNo.16stipulatesthatforsingletransactionsthatarenotbusinesscombinations,thataffectneitheraccountingprofitnortaxableincome(ordeductiblelosses)atthetimewhenthetransactionoccurs,andwheretheinitialrecognitionofassetsandliabilitiesresultsintaxabletemporarydifferencesanddeductibletemporarydifferencesofequalamounts(includingleasetransactionsinwhichthelesseerecognisestheinitialleaseliabilityandincludesitintheright-of-useassetonthecommencementdateoftheleaseterm,aswellassingletransactionsinwhichestimatedliabilitiesarerecognisedandincludedinthecostsofrelatedassetsduetofixedassets'retirementobligations),exemptionfrominitialrecognitionofdeferredincometaxliabilitiesanddeferredincome
taxassetsshallnotapply.Enterprisesshallrecognisethecorrespondingdeferredincometaxliabilitiesanddeferredincometaxassets,respectively,inaccordancewithNo.18oftheAccountingStandardsforBusinessEnterprises--IncomeTaxeswhenthetransactionisaffected.Forsingletransactionsthatoccurredbetweenthebeginningoftheearliestperiodpresentedinthefinancialstatementsandthedateofinitialapplicationofthisprovision,aswellasleaseliabilitiesandright-of-useassetsrecognisedatthebeginningoftheearliestperiodpresentedinthefinancialstatementsduetotheapplicationofthisprovisiontosingletransactions,andrecognisedestimatedliabilitiesrelatedtoretirementobligationsandcorrespondingrelatedassets,whichcreatetaxabletemporarydifferencesanddeductibletemporarydifferences,enterprisesshallmakeadjustmentsinaccordancewiththisprovision.ThechangeinaccountingpolicyhasnoimpactontheCompany'sfinancialstatements.
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstoFinancialStatementItemsattheBeginningoftheYearoftheFirstImplementationoftheNewAccountingStandardsImplementedsince2023
□Applicable√Notapplicable
VI.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Payabletosalesrevenue | 13%,9%,6%,5% |
| Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
| Enterpriseincometax | Taxableincome | 25%,15%,5% |
| Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Name | Incometaxrate |
| ChangchaiCompany,Limited | 15% |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHorizonInvestmentCo.,Ltd. | 25% |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 25% |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 15% |
| JiangsuChangchaiMachineryCo.,Ltd. | 25% |
| ChangzhouXingshengRealEstateManagementCo.,Ltd. | 5% |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 15% |
2.TaxPreferenceOn30November2021,theCompanyobtainedtheCertificatesforHigh-techEnterprisesagain,anditstil
lenjoys15-percentpreferentialrateforcorporateincometaxduringtheReportingPeriod;theCompany’s
controllingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2030inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopmentandMinistryofFinanceAnnouncementNo.23[2020]AnnouncementoftheMinistryofFinance,theStateAdministrationofTaxationandtheNationalDevelopmentandReformCommissiononContinuingtheEnterpriseIncomeTaxPolicyfortheGreatWesternDevelopment.On6November2023,thewholly-ownedsubsidiaryChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.obtainedagainthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod;Thewholly-ownedsubsidiaryChangzhouXingshengRealEstateManagementCo.,Ltd.iseligiblesmallenterprisewithlowprofitsandshallpaythecorporateincometaxattaxrate5%forsmallenterpriseswithlowprofitsduringtheReportingPeriod;ThesubsidiaryZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.hasobtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod.VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 157,238.05 | 251,965.06 |
| Bankdeposits | 999,604,998.68 | 830,914,999.19 |
| Othermonetaryassets | 84,105,730.14 | 98,846,386.72 |
| Total | 1,083,867,966.87 | 930,013,350.97 |
Othernotes:Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB76,238,443.41,ofwhichRMB74,453,641.92wasthecashdepositforbankacceptancebills,RMB897,966.00wascashdepositforL/G,andRMB886,835.49wascashdepositforenvironment.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 225,641,429.94 | 370,103,602.57 |
| Ofwhich: | ||
| Stocks | 85,295,021.00 | 78,739,311.00 |
| Financialproducts | 140,346,408.94 | 291,364,291.57 |
| Ofwhich: | ||
| Total | 225,641,429.94 | 370,103,602.57 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 161,632,567.94 | 297,125,872.54 |
| Total | 161,632,567.94 | 297,125,872.54 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Notesreceivableforwhichbaddebtprovisionseparatelyaccrued | ||||||||||
| Ofwhich: | ||||||||||
| Notesreceivableforwhichbaddebtprovisionaccruedbygroup | 161,632,567.94 | 100.00% | 161,632,567.94 | 297,125,872.54 | 100.00% | 297,125,872.54 | ||||
| Ofwhich: | ||||||||||
| Bankacceptancebills | 161,632,567.94 | 100.00% | 161,632,567.94 | 297,125,872.54 | 100.00% | 297,125,872.54 | ||||
| Total | 161,632,567.94 | 100.00% | 161,632,567.94 | 297,125,872.54 | 100.00% | 297,125,872.54 | ||||
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable:
□Applicable√Notapplicable
(3)NotesReceivablePledgedbytheCompanyatthePeriod-end:None
(4)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 55,979,832.64 | |
| Total | 55,979,832.64 |
4.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Within1year(including1year) | 313,597,375.85 | 343,017,134.79 |
| 1to2years | 1,873,298.19 | 25,903,580.29 |
| 2to3years | 4,436,548.28 | 6,917,677.75 |
| Over3years | 144,403,241.11 | 146,329,907.31 |
| 3to4years | 5,278,022.33 | 3,465,761.24 |
| 4to5years | 1,815,570.52 | 3,840,453.02 |
| Over5years | 137,309,648.26 | 139,023,693.05 |
| Total | 464,310,463.43 | 522,168,300.14 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 33,805,182.71 | 7.28% | 33,805,182.71 | 100.00% | 0.00 | 51,757,257.99 | 9.91% | 34,367,361.83 | 66.40% | 17,389,896.16 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 430,505,280.72 | 92.72% | 113,962,120.81 | 26.47% | 316,543,159.91 | 470,411,042.15 | 90.09% | 117,478,758.54 | 24.97% | 352,932,283.61 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 430,505,280.72 | 92.72% | 113,962,120.81 | 26.47% | 316,543,159.91 | 470,411,042.15 | 90.09% | 117,478,758.54 | 24.97% | 352,932,283.61 |
| Total | 464,310,463.43 | 100.00% | 147,767,303.52 | 31.83% | 316,543,159.91 | 522,168,300.14 | 100.00% | 151,846,120.37 | 29.08% | 370,322,179.77 |
Numberofcategoriesofbaddebtprovisionbyindividualitem:1Baddebtprovisionseparatelyaccrued:RMB33,805,182.71,ofwhich:RMB31,609,904.23forlargeimpairmentitems,thebreakdownisasfollows:
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer2 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer3 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer4 | 2,797,123.26 | 2,194,980.28 | 2,797,123.26 | 2,797,123.26 | 100.00% | Difficulttorecover |
| Customer5 | 3,633,081.23 | 2,122,165.73 | 2,322,278.50 | 2,322,278.50 | 100.00% | Difficulttorecover |
| Customer6 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer7 | 1,731,493.71 | 1,731,493.71 | 1,726,935.65 | 1,726,935.65 | 100.00% | Difficulttorecover |
| Customer8 | 2,025,880.18 | 2,025,880.18 | 2,025,880.18 | 2,025,880.18 | 100.00% | Difficulttorecover |
| Customer9 | 5,972,101.90 | 5,972,101.90 | 5,972,101.90 | 5,972,101.90 | 100.00% | Difficulttorecover |
| Customer10 | 4,592,679.05 | 4,592,679.05 | 4,592,679.05 | 4,592,679.05 | 100.00% | Difficulttorecover |
| Total | 32,925,265.02 | 30,812,206.54 | 31,609,904.23 | 31,609,904.23 | -- | -- |
Numberofcategoriesofbaddebtprovisionbygroup:1Withdrawalofbaddebtprovisionbygroup:ProvisionforbaddebtsbycreditriskcharacteristicgroupwasRMB113,962,120.81
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 313,597,375.85 | 6,271,947.50 | 2.00% |
| 1to2years | 1,873,298.19 | 93,664.91 | 5.00% |
| 2to3years | 3,894,285.62 | 584,142.84 | 15.00% |
| 3to4years | 5,278,022.33 | 1,583,406.70 | 30.00% |
| 4to5years | 1,083,349.67 | 650,009.80 | 60.00% |
| Over5years | 104,778,949.06 | 104,778,949.06 | 100.00% |
| Total | 430,505,280.72 | 113,962,120.81 | -- |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionseparatelyaccrued | 34,367,361.83 | 177,368.28 | 37,668.24 | 701,879.16 | 33,805,182.71 | |
| Withdrawalofbaddebtprovisionbygroup | 117,478,758.54 | 294,284.60 | 3,395,028.39 | 415,893.94 | 113,962,120.81 | |
| Total | 151,846,120.37 | 471,652.88 | 3,432,696.63 | 1,117,773.10 | 147,767,303.52 | |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Accountsreceivablewithactualverification | 1,117,773.10 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
| Nameoftheentity | Natureoftheaccountsreceivable | Verifiedamount | Reasonforverification | Verificationproceduresperformed | Arisingfromrelated-partytransactionsornot |
| Customer1 | Accoun | 42,099.41 | Debtreorganisation | Reorganization | Not |
| tsreceivableforgoods | agreement | |||
| Customer2 | 659,779.75 | Debtreorganisation | Reorganizationagreement | |
| Longtermreceivablesfrom94customers | 415,893.94 | Withaccountsreceivableagingover5years,thedebtorshavenoassetsfordebtextinguishmentduetothecounterpartcompanybeingrevokedorcancelled,ordebtreorganisation,bankruptcyclearing. | MinutesoftheExecutiveOffice | |
| Total | 1,117,773.10 |
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 155,981,057.12 | 0.00 | 155,981,057.12 | 33.59% | 3,119,621.14 |
| Customer2 | 35,865,520.31 | 0.00 | 35,865,520.31 | 7.72% | 717,310.41 |
| Customer3 | 30,056,545.72 | 0.00 | 30,056,545.72 | 6.47% | 601,130.91 |
| Customer4 | 18,140,927.66 | 0.00 | 18,140,927.66 | 3.91% | 362,818.55 |
| Customer5 | 13,769,193.20 | 0.00 | 13,769,193.20 | 2.97% | 275,383.86 |
| Total | 253,813,244.01 | 0.00 | 253,813,244.01 | 54.66% | 5,076,264.87 |
5.AccountsReceivableFinancing
(1)AccountsReceivableFinancingListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 195,875,948.92 | 242,813,392.79 |
| Total | 195,875,948.92 | 242,813,392.79 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Catego | Endingbalance | Beginningbalance |
| ry | Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | ||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Baddebtprovisionseparatelyaccrued | ||||||||||
| Ofwhich: | ||||||||||
| Baddebtprovisionaccruedbygroup | 195,875,948.92 | 100.00% | 195,875,948.92 | 242,813,392.79 | 100.00% | 242,813,392.79 | ||||
| Ofwhich: | ||||||||||
| Bankacceptancebills | 195,875,948.92 | 100.00% | 195,875,948.92 | 242,813,392.79 | 100.00% | 242,813,392.79 | ||||
| Total | 195,875,948.92 | 100.00% | 195,875,948.92 | 242,813,392.79 | 100.00% | 242,813,392.79 | ||||
(3)NotesReceivablePledgedbytheCompanyatthePeriod-end:None
(4)AccountsreceivablefinancingwhichhadendorsedbytheCompanyorhaddiscountedbuthadnotdueattheperiod-end
Unit:RMB
| Category | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 567,763,410.38 | |
| Total | 567,763,410.38 |
6.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | ||
| Dividendreceivable | ||
| Otherreceivables | 49,699,753.61 | 32,938,305.16 |
| Total | 49,699,753.61 | 32,938,305.16 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Marginandcashpledge | 595,723.55 | 2,028,096.87 |
| Intercoursefunds | 69,845,564.95 | 48,701,034.90 |
| Pettycashandborrowingsbyemployees | 922,370.54 | 742,075.76 |
| Other | 13,638,079.94 | 13,635,867.60 |
| Total | 85,001,738.98 | 65,107,075.13 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Within1year(including1year) | 56,704,032.54 | 16,050,004.29 |
| 1to2years | 115,776.00 | 15,783,825.92 |
| 2to3years | 12,802.00 | 1,164,476.00 |
| Over3years | 28,169,128.44 | 32,108,768.92 |
| 3to4years | 30,000.00 | 420,716.17 |
| 4to5years | 338,457.65 | |
| Over5years | 28,139,128.44 | 31,349,595.10 |
| Total | 85,001,738.98 | 65,107,075.13 |
3)DisclosurebyWithdrawalMethodsforBadDebts
√Applicable□NotapplicableProvisionforbaddebtsbasedongeneralmodelofexpectedcreditlosses
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 373,682.65 | 2,908,755.15 | 28,886,332.17 | 32,168,769.97 |
| Balanceof1January2023intheCurrentPeriod | ||||
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | 20,686.21 | 118.44 | 3,488,275.48 | 3,509,080.13 |
| ReversaloftheCurrentPeriod | 182,697.13 | 193,167.60 | 375,864.73 | |
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof31December2023 | 211,671.73 | 2,715,705.99 | 32,374,607.65 | 35,301,985.37 |
Thebasisforthedivisionofeachstageandthewithdrawalproportionofbaddebtprovision:NoneChangesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Others | |||
| Baddebtprovisionseparatelyaccrued | 5,536,285.44 | 254,122.09 | 5,282,163.35 | |||
| Withdrawalofbaddebtprovisionbygroup | 26,632,484.53 | 3,387,337.49 | 30,019,822.02 | |||
| Total | 32,168,769.97 | 3,387,337.49 | 254,122.09 | 35,301,985.37 | ||
5)ThereWereNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
6)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureau | CompensationforlandacquisitionofWuxingbusplantareaplot | 47,000,000.00 | Within1year | 55.29% | 0.00 |
| ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 3.46% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 3.36% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 1.91% | 1,626,483.25 |
| ChangchaiGroupSettlementCenter | Intercoursefunds | 1,128,676.16 | Over5years | 1.33% | 1,128,676.16 |
| Total | 55,548,347.43 | 65.35% | 8,548,347.43 |
7.Prepayments
(1)PrepaymentListedbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 11,196,498.47 | 90.78% | 5,941,708.21 | 93.86% |
| 1to2years | 840,617.01 | 6.82% | 289,373.60 | 4.57% |
| 2to3years | 289,345.37 | 2.35% | 71,654.18 | 1.13% |
| Over3years | 6,850.00 | 0.05% | 27,466.70 | 0.44% |
| Total | 12,333,310.85 | -- | 6,330,202.69 | -- |
Notesofthereasonsoftheprepaymentagingover1yearwithsignificantamountbutfailedsettledintime:Therewasnoprepaymentwithsignificantamountagingoveroneyearasoftheperiod-end.
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB8,775,900accountingfor71.16%ofthetotalendingbalanceofprepayments.
8.InventoriesWhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 199,751,010.25 | 7,529,878.82 | 192,221,131.43 | 163,954,131.27 | 5,982,286.51 | 157,971,844.76 |
| Materialsprocessedoncommission | 12,422,107.02 | 0.00 | 12,422,107.02 | 12,299,968.98 | 0.00 | 12,299,968.98 |
| Goodsinprocess | 90,202,210.05 | 6,761,129.14 | 83,441,080.91 | 110,883,778.58 | 10,725,860.43 | 100,157,918.15 |
| Finishedgoods | 527,412,149.21 | 27,690,142.42 | 499,722,006.79 | 322,959,181.08 | 22,755,460.80 | 300,203,720.28 |
| Lowpricedandeasilywornarticles | 1,413,859.53 | 0.00 | 1,413,859.53 | 1,363,429.57 | 0.00 | 1,363,429.57 |
| Total | 831,201,336.06 | 41,981,150.38 | 789,220,185.68 | 611,460,489.48 | 39,463,607.74 | 571,996,881.74 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Others | Transferred-backorcharged-off | Others | |||
| Rawmaterials | 5,982,286.51 | 4,292,094.21 | 2,744,501.90 | 7,529,878.82 | ||
| Goodsinprocess | 10,725,860.43 | 466,905.79 | 4,431,637.08 | 6,761,129.14 | ||
| Finishedgoods | 22,755,460.80 | 23,134,895.75 | 18,200,214.13 | 27,690,142.42 | ||
| Total | 39,463,607.74 | 27,893,895.75 | 25,376,353.11 | 41,981,150.38 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories.
(4)ThereWasNoInventoryPledgedforGuaranteeatthePeriod-end
9.CurrentPortionofNon-currentAssets
| Item | Endingbalance | Beginningbalance |
| Investmentsindebtobligationsduewithinoneyear | 40,773,509.75 | |
| Total | 40,773,509.75 |
(1)InvestmentsinDebtObligationsDuewithinOneYear
√Applicable□Notapplicable1）InvestmentsinDebtObligationsDuewithinOneYear
Unit:RMB
| Groupname | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Three-yearfixedtermdeposit | 40,773,509.75 | 40,773,509.75 | 0.00 | 0.00 | ||
| Total | 40,773,509.75 | 40,773,509.75 | 0.00 | 0.00 | ||
2)SignificantInvestmentsinDebtObligationsDuewithinOneYearatthePeriod-end
Unit:RMB
| Item | Parvalue | Couponrate | Maturitydate | Actualinterestrate | Overdueprincipal | ||
| Endingbalance | Beginningbalance | Endingbalance | Beginningbalance | ||||
| Three-yearfixedtermdeposit | 37,000,000.00 | 3.80% | 26April2024 | 3.72% | 0.00% | 0.00 | 0.00 |
| Total | 37,000,000.00 | 0.00 | 0.00 | ||||
10.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 19,940,871.92 | 47,682,930.23 |
| Prepaidcorporateincometax | 908,233.33 | 1,505,424.80 |
| Prepaidexpense | 61,399.59 | 90,667.46 |
| Total | 20,910,504.84 | 49,279,022.49 |
11.InvestmentsinDebtObligations
(1)ListofInvestmentsinDebtObligations
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Three-yearfixedtermdeposit | 0.00 | 0.00 | 39,309,587.93 | 39,309,587.93 | ||
| Total | 0.00 | 0.00 | 39,309,587.93 | 39,309,587.93 | ||
12.OtherEquityInstrumentInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | Gainsrecordedinothercomprehensiveincomeinthecurrentperiod | Lossesrecordedinothercomprehensiveincomeinthecurrentperiod | Accumulativegainsrecordedinothercomprehensiveincomeinthecurrentperiod | Accumulativelossesrecordedinothercomprehensiveincomeinthecurrentperiod | Dividendincomerecognizedincurrentyear | Reasonforassigningtomeasureinfairvalueofwhichchangesincludedothercomprehensiveincome |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 418,457,025.67 | 378,929,240.08 | 39,527,785.59 | 318,457,025.67 | Non-tradingequityinvestment | |||
| Other | 551,031,0 | 576,631,0 | 25,600,00 | 466,461,0 | 11,482,38 | Non-tradi |
| equityinstrumentinvestmentmeasuredbyfairvalue | 00.00 | 00.00 | 0.00 | 00.00 | 0.00 | ngequityinvestment | ||
| Total | 969,488,025.67 | 955,560,240.08 | 39,527,785.59 | 25,600,000.00 | 784,918,025.67 | 11,482,380.00 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
| Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
| FotonMotorCo.,Ltd. | 352,701,000.00 | Non-tradingequityinvestment | ||||
| BankofJiangsu | 11,482,380.00 | 113,760,000.00 | Non-tradingequityinvestment | |||
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 318,457,025.67 | Non-tradingequityinvestment |
Othernotes:
Thecorporatesecuritiesofaccommodationbusinessstillonlendingattheperiod-end:931,800sharesofFotonMotorCo.,Ltd.
13.Long-termEquityInvestment
Unit:RMB
| Investees | Beginning | Beginning | Increase/decrease | Ending | Ending | |||||||
| Addit | Redu | Gain | Adjus | Chan | Cash | Withd | Other | |||||
| balance(carryingvalue) | balanceofdepreciationreserves | ionalinvestment | cedinvestment | orlossrecognizedundertheequitymethod | tmentofothercomprehensiveincome | gesinotherequity | bonusorprofitannouncedtoissue | rawalofdepreciationreserves | balance(carryingvalue) | balanceofdepreciationreserves | ||
| I.Jointventure | ||||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| II.Associatedenterprises | ||||||||||||
| BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
| Subtotal | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
| Total | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
14.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
15.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Total |
| I.Originalcarryingvalue | ||
| 1.Beginningbalance | 93,077,479.52 | 93,077,479.52 |
| 2.Increasedamountoftheperiod | ||
| (1)Outsourcing | ||
| (2)Transferfrominventories/fixedassets/constructioninprogress | ||
| (3)Enterprisecombinationincrease | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 93,077,479.52 | 93,077,479.52 |
| II.Accumulativedepreciationandaccumulativeamortization | ||
| 1.Beginningbalance | 50,916,699.87 | 50,916,699.87 |
| 2.Increasedamountoftheperiod | 2,323,221.54 | 2,323,221.54 |
| (1)Withdrawaloramortization | 2,323,221.54 | 2,323,221.54 |
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 53,239,921.41 | 53,239,921.41 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod | ||
| (1)Withdrawal | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue | ||
| 1.Endingcarryingvalue | 39,837,558.11 | 39,837,558.11 |
| 2.Beginningcarryingvalue | 42,160,779.65 | 42,160,779.65 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | 412,914,576.80 | 373,500,000.00 |
| Total | 412,914,576.80 | 373,500,000.00 |
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
16.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 675,596,920.95 | 720,061,387.76 |
| Disposaloffixedassets | ||
| Total | 675,596,920.95 | 720,061,387.76 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 710,604,039.88 | 1,118,697,686.65 | 19,132,190.47 | 57,025,921.99 | 1,905,459,838.99 |
| 2.Increasedamountoftheperiod | 1,834,818.27 | 38,989,742.83 | 1,987,770.58 | 8,118,776.09 | 50,931,107.77 |
| (1)Purchase | 26,548.67 | 2,982,332.29 | 174,778.77 | 658,300.25 | 3,841,959.98 |
| (2)Transferfromconstructioninprogress | 1,808,269.60 | 36,007,410.54 | 1,812,991.81 | 7,460,475.84 | 47,089,147.79 |
| (3)Enterprisecombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 28,465,330.35 | 40,568,592.59 | 4,592,712.12 | 3,324,523.35 | 76,951,158.41 |
| (1)Disposalorscrap | 28,465,330.35 | 40,568,592.59 | 4,592,712.12 | 3,324,523.35 | 76,951,158.41 |
| 4.Endingbalance | 683,973,527.80 | 1,117,118,836.89 | 16,527,248.93 | 61,820,174.73 | 1,879,439,788.35 |
(2)ListofTemporarilyIdleFixedAssets
Unit:RMB
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 330,845,140.13 | 803,945,702.56 | 13,446,223.77 | 36,738,140.74 | 1,184,975,207.20 |
| 2.Increasedamountoftheperiod | 22,013,333.90 | 57,662,526.29 | 1,228,111.91 | 5,752,924.77 | 86,656,896.87 |
| (1)Withdrawal | 22,013,333.90 | 57,662,526.29 | 1,228,111.91 | 5,752,924.77 | 86,656,896.87 |
| (2)Transferfromcombination | |||||
| 3.Decreasedamountoftheperiod | 21,079,535.16 | 39,127,527.89 | 4,572,617.88 | 3,306,776.44 | 68,086,457.37 |
| (1)Disposalorscrap | 21,079,535.16 | 39,127,527.89 | 4,572,617.88 | 3,306,776.44 | 68,086,457.37 |
| 4.Endingbalance | 331,778,938.87 | 822,480,700.96 | 10,101,717.80 | 39,184,289.07 | 1,203,545,646.70 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 423,244.03 | 423,244.03 | |||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | 126,023.33 | 126,023.33 | |||
| (1)Disposalorscrap | 126,023.33 | 126,023.33 | |||
| 4.Endingbalance | 297,220.70 | 297,220.70 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 352,194,588.93 | 294,340,915.23 | 6,425,531.13 | 22,635,885.66 | 675,596,920.95 |
| 2.Beginningcarryingvalue | 379,758,899.75 | 314,328,740.06 | 5,685,966.70 | 20,287,781.25 | 720,061,387.76 |
| Item | Originalcarryingvalue | Accumulativedepreciation | Depreciationreserves | Carryingvalue | Note |
| Machineryequipment | 309,407.50 | 12,186.80 | 297,220.70 |
17.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 4,253,721.78 | 30,259,647.16 |
| Engineeringmaterials | 21,900.40 | 21,900.40 |
| Total | 4,275,622.18 | 30,281,547.56 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Innovationcapacityconstructionoftechnologycenter | 981,532.17 | 981,532.17 | 5,443,764.33 | 5,443,764.33 | ||
| Relocationprojectoflightengineandcasting | 0.00 | 0.00 | 11,155,119.70 | 11,155,119.70 | ||
| Equipmenttobeinstalledandpaymentforprojects | 3,272,189.61 | 3,272,189.61 | 13,660,763.13 | 13,660,763.13 | ||
| Total | 4,253,721.78 | 4,253,721.78 | 30,259,647.16 | 30,259,647.16 | ||
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Jobschedule | Accumulatedamountof | Ofwhich:Amountofcapital | Capitalizationrateofinteres | Capitalresources |
| interestcapitalization | izedinterestsfortheReportingPeriod | tsfortheReportingPeriod | |||||||||
| Innovationcapacityconstructionoftechnologycenter | 96,066,200.00 | 5,443,764.33 | 4,245,219.52 | 8,707,451.68 | 981,532.17 | Completed | Self-raisedandraisedfunds | ||||
| Relocationprojectoflightengineandcasting | 474,706,000.00 | 11,155,119.70 | 7,427,088.87 | 13,568,085.53 | 5,014,123.04 | 0.00 | Completed | Self-raisedandraisedfunds | |||
| Total | 570,772,200.00 | 16,598,884.03 | 11,672,308.39 | 22,275,537.21 | 5,014,123.04 | 981,532.17 | -- | -- |
(3)ImpairmentTestofConstructioninProgress
□Applicable?Notapplicable
(4)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Engineeringmaterials | 21,900.40 | 21,900.40 | 21,900.40 | 21,900.40 | ||
| Total | 21,900.40 | 21,900.40 | 21,900.40 | 21,900.40 | ||
18.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 214,187,775.71 | 17,847,202.14 | 5,538,000.00 | 1,650,973.47 | 239,223,951.32 |
| 2.Increasedamountoftheperiod | 2,572,402.01 | 2,572,402.01 | |||
| (1)Purchase | 2,572,402.01 | 2,572,402.01 | |||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 9,000,000.00 | 9,000,000.00 | |||
| (1)Disposal | 9,000,000.00 | 9,000,000.00 | |||
| 4.Endingbalance | 205,187,775.71 | 20,419,604.15 | 5,538,000.00 | 1,650,973.47 | 232,796,353.33 |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 63,832,525.74 | 14,396,059.27 | 3,246,750.17 | 356,398.60 | 81,831,733.78 |
| 2.Increasedamountoftheperiod | 4,215,896.42 | 2,145,112.60 | 553,382.93 | 167,041.92 | 7,081,433.87 |
| (1)Withdrawal | 4,215,896.42 | 2,145,112.60 | 553,382.93 | 167,041.92 | 7,081,433.87 |
| (2)Combinationincrease | |||||
| 3.Decreasedamountoftheperiod | 4,575,000.00 | 4,575,000.00 | |||
| (1)Disposal | 4,575,000.00 | 4,575,000.00 | |||
| 4.Endingbalance | 63,473,422.16 | 16,541,171.87 | 3,800,133.10 | 523,440.52 | 84,338,167.65 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue |
| 1.Endingcarryingvalue | 141,714,353.55 | 3,878,432.28 | 1,737,866.90 | 1,127,532.95 | 148,458,185.68 |
| 2.Beginningcarryingvalue | 150,355,249.97 | 3,451,142.87 | 2,291,249.83 | 1,294,574.87 | 157,392,217.54 |
IntangibleassetsformedthroughinternalR&Daccountedfor0%oftheintangibleassetbalanceattheendoftheperiod.
19.Long-termPrepaidExpenses
Unit:RMB
| Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
| Trademarkrenewalfee | 201,970.32 | 92,108.91 | 25,871.11 | 268,208.12 | |
| Externalpowerlineaccessproject | 3,078,000.00 | 324,000.00 | 2,754,000.00 | ||
| Processingreservedfloorpavingandlightinginstallationworks | 5,205,750.54 | 5,205,750.54 | |||
| Total | 3,279,970.32 | 5,297,859.45 | 349,871.11 | 8,227,958.66 |
20.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Baddebtprovision | 6,427,652.90 | 967,779.48 | 6,853,948.19 | 1,048,165.04 |
| Deductibleloss | 149,230,051.55 | 24,713,867.00 | ||
| Inventoryfallingpricereserves | 2,707,033.40 | 506,633.20 | 2,633,715.26 | 395,057.29 |
| Impairmentoffixedassets | 297,220.70 | 44,583.11 | 423,244.03 | 63,486.60 |
| Total | 9,431,907.00 | 1,518,995.79 | 159,140,959.03 | 26,220,575.93 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 5,489,891.06 | 823,483.65 | 5,677,718.36 | 851,657.75 |
| Changesoffairvalueofotherequityinstrumentinvestments | 1,102,931,935.12 | 171,019,971.87 | 1,039,472,114.80 | 160,508,593.58 |
| Total | 1,108,421,826.18 | 171,843,455.52 | 1,045,149,833.16 | 161,360,251.33 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Baddebtprovision | 176,641,635.99 | 177,160,942.15 |
| Fallingpricereservesofinventories | 39,274,116.98 | 36,829,892.48 |
| Deductibleloss | 137,917,562.93 | 22,257,409.96 |
| Total | 353,833,315.90 | 236,248,244.59 |
(4)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| 2023 | 1,146,746.13 | ||
| 2024 | 3,605,384.25 | 3,605,384.25 | |
| 2025 | 5,250,820.81 | 5,250,820.81 | |
| 2026 | 9,546,495.23 | 7,372,277.94 | |
| 2027 | 68,877,350.74 | 4,882,180.83 | |
| 2028 | 50,637,511.90 | ||
| Total | 137,917,562.93 | 22,257,409.96 |
21.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Advancespaymentofequipments | 2,578,776.77 | 2,578,776.77 | 670,735.93 | 670,735.93 | ||
| Total | 2,578,776.77 | 2,578,776.77 | 670,735.93 | 670,735.93 |
22.AssetswithRestrictedOwnershiporRightofUse
Unit:RMB
| Item | Period-end | Period-beginning | ||||||
| Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | |
| Monetaryfunds--othermonetaryfunds | 76,238,443.41 | 76,238,443.41 | Occupiedascashdeposit | Bankacceptancedeposit,environmentalperformancebond,etc. | 95,662,384.92 | 95,662,384.92 | Occupiedascashdeposit | Bankacceptancedeposit,environmentalperformancebond,etc. |
| Fixedassets–housesandbuildings | 1,332,812.48 | 1,332,812.48 | Mortgaged | Mortgagedforissuingbankacceptancebills | 1,530,890.90 | 1,530,890.90 | Mortgaged | Mortgagedforbankloans |
| Intangibleassets--landuserights | 847,162.28 | 847,162.28 | Mortgaged | Mortgagedforissuingbankacceptancebills | 879,275.35 | 879,275.35 | Mortgaged | Mortgagedforbankloans |
| Fixedassets--machineryandequipment | 23,728,733.18 | 23,728,733.18 | Mortgaged | Mortgagedforissuingbankacceptancebills | 31,222,420.22 | 31,222,420.22 | Mortgaged | Mortgagedforbankloans |
| Notesreceivable--outstandingdiscountednotes | 110,000,000.00 | 110,000,000.00 | Obligationtopaybillsdiscountedbeforematurity | DiscountedbytheCompanyattheperiod-endandnotdueonthebalancesheetdate | ||||
| Notesreceivable--outstandingtransferrednotes | 55,979,832.64 | 55,979,832.64 | Obligationtopayunexpiredtransferrednotes | EndorsedbytheCompanyattheperiod-endandnotdueonthe | 66,395,231.83 | 66,395,231.83 | Obligationtopayunexpiredtransferrednotes | EndorsedbytheCompanyattheperiod-endandnotdueonthe |
| balancesheetdate | balancesheetdate | |||||||
| Total | 158,126,983.99 | 158,126,983.99 | 305,690,203.22 | 305,690,203.22 |
23.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageloans | 0.00 | 7,000,000.00 |
| Obligationtopaybillsdiscountedbeforematurity | 0.00 | 108,437,700.65 |
| Total | 0.00 | 115,437,700.65 |
24.NotesPayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 528,139,582.33 | 471,876,397.72 |
| Total | 528,139,582.33 | 471,876,397.72 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
25.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 641,484,184.05 | 747,010,098.88 |
| Total | 641,484,184.05 | 747,010,098.88 |
(2)SignificantAccountsPayableAgingoverOneYearorOverdue
Unit:RMB
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Paymentforgoods | 38,821,047.06 | Suspendingcooperationwithsupplierstoliquidatethepayment |
| Paymentforequipment | 4,684,372.75 | Equipmentwarranty |
| Total | 43,505,419.81 |
26.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 155,131,948.98 | 156,155,449.10 |
| Total | 159,023,382.81 | 160,046,882.93 |
(1)DividendsPayable
Unit:RMB
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 2,671,042.33 | 4,293,474.88 |
| Intercoursefundsamongunits | 11,107,514.80 | 7,831,477.01 |
| Intercoursefundsamongindividuals | 398,761.04 | 397,761.04 |
| Salesdiscountandthreeguarantees | 125,096,632.36 | 126,787,544.75 |
| Other | 15,857,998.45 | 16,845,191.42 |
| Total | 155,131,948.98 | 156,155,449.10 |
2)SignificantOtherPayablesAgingoverOneYearThesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
| Item | Endingbalance | Beginningbalance |
| Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
| Interestofpreferredshares/perpetualbondclassifiedasequityinstrument | ||
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
| Other | ||
| Total | 3,891,433.83 | 3,891,433.83 |
27.AdvancesfromCustomers
(1)ListofAdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Rentreceivedinadvance | 647,441.22 | 837,425.55 |
| Landcompensationreceivedinadvance | 1,000,000.00 | |
| Total | 1,647,441.22 | 837,425.55 |
(2)Therewerenosignificantadvancesfromcustomersagingoveroneyearoroverdue.
28.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Contractliabilities | 33,352,877.66 | 32,843,692.83 |
| Total | 33,352,877.66 | 32,843,692.83 |
Therewerenosignificantcontractliabilitiesagingoveroneyearattheendoftheperiod.
29.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 49,151,022.47 | 276,664,221.67 | 278,076,360.57 | 47,738,883.57 |
| II.Post-employmentbenefit-definedcontributionplans | 32,642,608.82 | 32,642,608.82 | ||
| III.Terminationbenefits | 200,000.00 | 200,000.00 | ||
| IV.Currentportionofotherbenefits | ||||
| Total | 49,351,022.47 | 309,306,830.49 | 310,918,969.39 | 47,738,883.57 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 40,883,518.77 | 230,395,729.07 | 231,082,308.43 | 40,196,939.41 |
| 2.Employeewelfare | 1,592.74 | 3,770,067.21 | 3,770,067.21 | 1,592.74 |
| 3.Socialinsurance | 17,930,988.64 | 17,930,988.64 | ||
| Ofwhich:Medicalinsurancepremiums | 14,582,048.07 | 14,582,048.07 | ||
| Work-relatedinjuryinsurance | 1,822,382.77 | 1,822,382.77 | ||
| Maternityinsurance | 1,526,557.80 | 1,526,557.80 | ||
| 4.Housingfund | 19,978,775.41 | 19,978,775.41 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 8,265,910.96 | 4,476,279.74 | 5,201,839.28 | 7,540,351.42 |
| 6.Short-termabsencewithsalary | ||||
| 7.Short-termprofitsharingscheme | ||||
| Othershort-termcompensation | 112,381.60 | 112,381.60 | ||
| Total | 49,151,022.47 | 276,664,221.67 | 278,076,360.57 | 47,738,883.57 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 31,658,782.33 | 31,658,782.33 | ||
| 2.Unemploymentinsurance | 983,826.49 | 983,826.49 | ||
| 3.Enterpriseannuities | ||||
| Total | 32,642,608.82 | 32,642,608.82 |
30.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 189,045.23 | 2,240,512.82 |
| Corporateincometax | 1,686,812.32 | 1,272,876.86 |
| Personalincometax | 312,930.09 | 68,629.73 |
| Urbanmaintenanceandconstructiontax | 881,885.27 | 1,151,395.75 |
| Propertytax | 1,678,590.95 | 1,172,973.71 |
| Landusetax | 943,261.64 | 1,041,594.39 |
| Stampduty | 349,554.08 | 286,018.61 |
| EducationSurcharge | 36,841.50 | 229,345.14 |
| Comprehensivefees | 120,291.58 | 1,075,134.76 |
| Environmentalprotectiontax | 31,957.08 | 31,693.62 |
| Total | 6,231,169.74 | 8,570,175.39 |
31.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 393,790.53 | 806,555.29 |
| Transportationstoragefee | 830,881.27 | 597,090.12 |
| Electriccharge | 1,457,500.39 | 1,467,332.18 |
| Taxtobetransferred | 2,830,696.17 | 2,821,340.54 |
| Estimatedsharevalueaddedtax | 2,230,084.52 | 1,909,715.09 |
| Obligationtopaybillstransferredbeforematurity | 55,979,832.64 | 66,395,231.83 |
| Otherwithholdingexpenses | 3,347,180.44 | 4,648,476.11 |
| Total | 67,069,965.96 | 78,645,741.16 |
32.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentgrants | 36,205,625.94 | 3,409,729.46 | 32,795,896.48 | Governmentappropriation | |
| Total | 36,205,625.94 | 3,409,729.46 | 32,795,896.48 | -- |
Liabilityitemsinvolvinggovernmentgrants
| Item | Beginningbalance | Amountofnewsubsidy | AmountrecordedintootherincomeintheReportingPeriod | Endingbalance | Relatedtoassets/relatedincome |
| Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengines | 11,521,101.00 | 1,519,266.00 | 10,001,835.00 | Relatedtoassets | |
| Removecompensation | 17,847,790.36 | 665,973.62 | 17,181,816.74 | Relatedtoassets | |
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IV | 6,836,734.58 | 1,224,489.84 | 5,612,244.74 | Relatedtoassets |
| standardhigh-poweredefficientdieselengineforagriculturaluse | ||||
| Total | 36,205,625.94 | 3,409,729.46 | 32,795,896.48 |
33.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 705,692,507.00 | 705,692,507.00 | |||||
34.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium(premiumonstock) | 620,338,243.21 | 620,338,243.21 | ||
| Othercapitalreserves | 19,795,719.80 | 375,712.83 | 20,171,432.63 | |
| Total | 640,133,963.01 | 375,712.83 | 640,509,675.84 |
Othernotes,includingchangesandreasonsthereof:
Increaseinthisperiod:Theparentcompanyacquired7.5%equityofitssubsidiaryZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.ThedifferenceofRMB375,712.83betweenthelong-termequityinvestmentcostnewlyacquiredbytheparentcompanyandtheidentifiablenetassetsharethatshouldbeenjoyedbythesubsidiaryfromthepurchasedate(ormergerdate)calculatedbasedonthenewshareholdingpercentagewasdebitedtocapitalreserve.
35.OtherComprehensiveIncome
Unit:RMB
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:Recordedinothercomprehensiveincomeinpriorperiodandtransferre | Less:Recordedinothercomprehensiveincomeinpriorperiod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributabletonon-controllinginterestsafter | |||
| dinprofitorlossintheCurrentPeriod | andtransferredinretainedearningsintheCurrentPeriod | tax | ||||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 655,341,704.07 | 13,927,785.59 | 2,089,167.84 | 11,838,617.75 | 667,180,321.82 | |||
| Ofwhich:Changescausedbyre-measurementsondefinedbenefitpensionschemes | ||||||||
| Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||||||||
| Changesinfairvalueofotherequityinstrumentinvestment | 655,341,704.07 | 13,927,785.59 | 2,089,167.84 | 11,838,617.75 | 667,180,321.82 | |||
| Changesinfairvalueofcorporatecreditrisk | ||||||||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | ||||||||
| Ofwhich:Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | ||||||||
| Changesinfairvalueofinvestmentinotherdebtobligations | ||||||||
| Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | ||||||||
| Creditdepreciationreservesofinvestmentin |
| otherdebtobligations | |||||||
| Reservesforcashflowhedges | |||||||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | |||||||
| Totalofothercomprehensiveincome | 655,341,704.07 | 13,927,785.59 | 2,089,167.84 | 11,838,617.75 | 667,180,321.82 |
Othernotes,includingtheadjustmentoftheeffectivegain/lossoncashflowhedgestotheinitialrecognizedamount:None
36.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 18,848,856.75 | 5,136,988.70 | 4,553,755.93 | 19,432,089.52 |
| Total | 18,848,856.75 | 5,136,988.70 | 4,553,755.93 | 19,432,089.52 |
37.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 336,040,867.82 | 14,497,866.62 | 350,538,734.44 | |
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 349,197,725.72 | 14,497,866.62 | 363,695,592.34 |
38.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 915,495,909.35 | 872,212,354.88 |
| Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | ||
| Beginningbalanceofretainedearningsafteradjustments | 915,495,909.35 | 872,212,354.88 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 108,495,607.05 | 76,684,796.91 |
| Less:Withdrawalofstatutorysurplusreserves | 14,497,866.62 | 15,053,237.26 |
| Withdrawalofdiscretionalsurplusreserves | ||
| Withdrawalofgeneralreserve | ||
| Dividendofordinarysharespayable | 7,056,925.07 | 18,348,005.18 |
| Dividendsofordinarysharestransferredassharecapital | ||
| Endingretainedearnings | 1,002,436,724.71 | 915,495,909.35 |
Listofadjustmentofbeginningretainedearnings:
(1)RMB0.00beginningretainedearningswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
(2)RMB0.00beginningretainedearningswasaffectedbychangesinaccountingpolicies.
(3)RMB0.00beginningretainedearningswasaffectedbycorrectionofsignificantaccountingerrors.
(4)RMB0.00beginningretainedearningswasaffectedbychangesincombinationscopearisingfromsamecontrol.
(5)RMB0.00beginningretainedearningswasaffectedtotallybyotheradjustments.
39.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 2,110,376,920.43 | 1,813,233,693.78 | 2,145,567,983.95 | 1,924,209,350.48 |
| Otheroperations | 45,321,867.06 | 25,522,137.63 | 36,475,111.66 | 24,467,686.04 |
| Total | 2,155,698,787.49 | 1,838,755,831.41 | 2,182,043,095.61 | 1,948,677,036.52 |
Whethertheloweroftheauditednetprofitbeforeandafterdeductionofnon-recurringgainsandlossesisnegative
√Yes□No
Unit:RMB
| Item | 2023 | Specificdeduction | 2022 | Specificdeduction |
| Operatingrevenue | 2,155,698,787.49 | ThemainbusinessoftheCompanyistheproductionandsalesofdieselenginesandgasolineengines | 2,182,043,095.61 | ThemainbusinessoftheCompanyistheproductionandsalesofdieselenginesandgasolineengines |
| Totaloperatingincomewithdeduction | 45,321,867.06 | Otherbusinessincomeotherthanmainoperations | 36,475,111.66 | Otherbusinessincomeotherthanmainoperations |
| Theproportionoftotaloperatingincomewithdeductioninoperatingrevenue | 2.10% | 1.67% | ||
| I.Businessincomenot |
| relatedtothemainbusiness | ||||
| 1.Otherbusinessincomeoutsidenormalbusiness.E.g.,incomefromtheleaseoffixedassets,intangibleassets,packagingmaterials,salesmaterials,non-monetaryassetexchangewithmaterialsandoperationofentrustedmanagementbusiness,andincomethatisincludedintheincomefromprimarybusinessbutisoutsidethenormalbusinessofthelistedcompany. | 45,321,867.06 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges | 36,475,111.66 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges |
| Subtotalofbusinessincomenotrelatedtothemainbusiness | 45,321,867.06 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges | 36,475,111.66 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges |
| II.Incomewithoutcommercialsubstance | ||||
| Subtotalofincomewithoutcommercialsubstance | 0.00 | None | 0.00 | None |
| III.Otherincomenotrelatedtothemainbusinessorwithoutcommercialsubstance | 0.00 | None | 0.00 | None |
| Operatingrevenueafterdeduction | 2,110,376,920.43 | Salesofdieselandgasolineenginesandotherproductsandaccessories | 2,145,567,983.95 | Salesofdieselandgasolineenginesandotherproductsandaccessories |
Breakdowninformationofoperatingincomeandoperatingcost:
Unit:RMB
| Categoryofcontracts | Segment1 | Total | ||
| OperatingRevenue | Operatingcost | OperatingRevenue | Operatingcost | |
| BusinessType | ||||
| Ofwhich: | ||||
| Single-cylinderdieselengines | 898,804,550.09 | 777,396,32947 | 898,804,550.09 | 777,396,32947 |
| Multi-cylinderdieselengines | 796,114,105.16 | 713,613,118.19 | 796,114,105.16 | 713,613,118.19 |
| Otherproducts | 246,884,141.39 | 189,693,819.70 | 246,884,141.39 | 189,693,819.70 |
| Fittings | 124,949,724.48 | 132,530,426.42 | 124,949,724.48 | 132,530,426.42 |
| Classificationbyoperatingregion | ||||
| Ofwhich: | ||||
| Salesindomesticmarket | 1,732,696,737.12 | 1,465,335,809.67 | 1,732,696,737.12 | 1,465,335,809.67 |
| Exportsales | 377,680,183.31 | 347,897,884.11 | 377,680,183.31 | 347,897,884.11 |
| Total | 2,110,376,920.43 | 1,813,233,693.78 | 2,110,376,920.43 | 1,813,233,693.78 |
Informationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0attheperiod-end.
40.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 1,195,680.92 | 2,905,289.19 |
| Educationsurcharge | 854,061.84 | 2,073,990.11 |
| Propertytax | 7,027,411.47 | 6,312,819.28 |
| Landusetax | 4,209,985.02 | 4,474,736.13 |
| Vehicleandvesselusetax | 2,803.52 | 3,092.64 |
| Stampduty | 1,546,467.17 | 898,751.20 |
| Environmenttax | 204,264.65 | 293,572.90 |
| Other | 16,723.66 | 10,944.81 |
| Total | 15,057,398.25 | 16,973,196.26 |
41.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 51,674,294.80 | 62,242,258.03 |
| Officeexpenses | 10,787,236.38 | 9,510,389.69 |
| Depreciationandamortization | 24,825,227.36 | 16,116,539.74 |
| Safetyexpenses | 4,782,552.29 | 4,877,232.12 |
| Repaircharge | 741,750.01 | 1,736,442.58 |
| Inventoryscrapandinventoryloss(profit) | 6,291,477.71 | -333,858.14 |
| Other | 24,878,795.44 | 25,362,185.70 |
| Total | 123,981,333.99 | 119,511,189.72 |
42.SellingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 42,024,752.56 | 41,414,480.36 |
| Officeexpenses | 10,212,761.75 | 9,191,582.99 |
| Threeguarantees | 45,920,031.28 | 50,709,187.02 |
| Other | 1,445,736.57 | 1,314,973.34 |
| Total | 99,603,282.16 | 102,630,223.71 |
43.DevelopmentCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 51,504,815.69 | 43,996,939.37 |
| Employeebenefits | 24,744,156.04 | 24,608,063.95 |
| Depreciationandamortization | 4,895,983.48 | 4,570,577.95 |
| Entrusteddevelopmentcharges | 684,195.77 | 6,509,898.89 |
| Other | 8,509,953.35 | 1,554,116.90 |
| Total | 90,339,104.33 | 81,239,597.06 |
44.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 1,825,195.98 | 1,993,453.71 |
| Less:Interestincome | 9,008,657.82 | 12,804,077.19 |
| Netforeignexchangegainsorlosses | -4,234,188.82 | -10,929,750.57 |
| Other | 132,973.74 | 150,669.42 |
| Total | -11,284,676.92 | -21,589,704.63 |
45.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Governmentgrantsdirectlyrecordedintothecurrentprofitorloss | 3,009,573.87 | 3,749,273.00 |
| Governmentgrantsrelatedtodeferredincome | 3,409,729.46 | 3,409,729.46 |
| Others | 368,808.64 | 25,025.59 |
Listofotherincome:
| Category | ReportingPeriod | Sameperiodoflastyear |
| Subsidiesforstabilizing,increasingandretainingjobpositions | 771,481.00 | 2,396,713.00 |
| Category | ReportingPeriod | Sameperiodoflastyear |
| Membershipduesreturn | 4,860.00 | 4,760.00 |
| Specialfundsforhigh-qualityindustrialdevelopment | 25,000.00 | |
| Subsidiesforskillenhancementtrainingandtechnicalimprovementreward | 20,000.00 | 50,000.00 |
| Specialfundsforpromotinghigh-qualitydevelopmentthroughtechnologicalinnovation | 513,000.00 | |
| Specialfundsfortalents | 60,000.00 | 170,000.00 |
| Incentivesandsubsidiesforearlierphase-outandscrappingofhigh-emissionoldcarsinChangzhou | 19,500.00 | 59,800.00 |
| Employmentandapprenticeshipsubsidies | 49,706.25 | 11,000.00 |
| High-techenterpriserecognitionbonusandR&Dinvestmentincentives | 80,000.00 | 247,000.00 |
| Municipalscienceandtechnologyinnovationandincentivefunds,ScienceandTechnologyProgramFunding | 543,026.62 | 341,000.00 |
| Subsidiesforhigh-qualityinvention | 30,000.00 | 2,000.00 |
| Specialfundsforbusinessdevelopment | 841,500.00 | 104,300.00 |
| Intellectualpropertyfundingandrewards | 1,500.00 | |
| Rewardsfordistrictengineeringtechnologyresearchcentrein2023 | 50,000.00 | |
| SupportFundsforAgriculturalMachineryGuildinZhonglouDistrictofChangzhouin2022 | 250,000.00 | |
| Municipalspecialfundsforenvironmentalprotection | 10,000.00 | |
| Incentivesforprovincialtechnologytransferacceptor | 27,700.00 | |
| TaxContributionAward | 30,000.00 |
| Category | ReportingPeriod | Sameperiodoflastyear |
| Subsidiesforwork-basedtraining | 45,000.00 | |
| Demolitioncompensation(replacingZouVillagewithHehaiRoad) | 267,333.48 | 267,333.48 |
| Demolitioncompensation-mainworkshopsinthebaseinHehaiRoad | 398,640.14 | 398,640.14 |
| Thenationalmajorspecialproject-theflexibleprocessingproductionlinefordieselenginecylinderblocks | 1,519,266.00 | 1,519,266.00 |
| NationalIII/IVAppropriationfortheresearchanddevelopmentandindustrializationofstandardhigh-horsepowerhigh-efficiencyagriculturaldieselengine | 1,224,489.84 | 1,224,489.84 |
| ValueAddedTax(VAT)DeductionsandBenefits | 294,256.13 | |
| Individualtaxhandlingfees | 74,552.51 | 25,025.59 |
| Total | 6,788,111.97 | 7,184,028.05 |
46.GainonChangesinFairValue
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Held-for-tradingfinancialassets | 10,401,521.88 | -40,756,542.83 |
| Othernon-currentfinancialassets | 39,414,576.80 | 186,000,000.00 |
| Total | 49,816,098.68 | 145,243,457.17 |
47.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | ||
| Investmentincomefromdisposaloflong-termequityinvestment | ||
| Investmentincomefromholdingoftradingfinancialassets | ||
| Investmentincomefromdisposaloftradingfinancialassets | 3,820,476.37 | 12,262.47 |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 11,482,380.00 | 9,360,000.00 |
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
| Interestincomefromholdingofinvestmentindebtobligations | 1,463,921.82 | 1,411,361.54 |
| Interestincomefromholdingofinvestmentinotherdebtobligations | ||
| Investmentincomefromdisposalofinvestmentinotherdebtobligations | ||
| Incomefromdebtreorganization | ||
| Dividendincomefromholdingofheld-for-tradingfinancialassets | 343,730.00 | 296,740.00 |
| Incomefromrefinancingoperations | 28,498.48 | 136,003.96 |
| Investmentincomefromfinancialproducts | 7,673,218.19 | 5,995,552.35 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -5,709,875.91 | -9,242,453.13 |
| Total | 19,102,348.95 | 7,969,467.19 |
48.CreditImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofotherreceivables | -3,133,215.40 | 172,411.52 |
| Baddebtlossofaccountsreceivable | 2,961,043.75 | -3,126,152.25 |
| Total | -172,171.65 | -2,953,740.73 |
49.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| I.Lossoninventoryvaluationandcontractperformancecost | -27,893,895.75 | -14,367,197.27 |
| Total | -27,893,895.75 | -14,367,197.27 |
50.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Disposalincomeoffixedassetsandintangibleassets | 105,702,551.01 | 393,161.73 |
Othernotes:ThePeople'sGovernmentofZhonglouDistrict,ChangzhouCityhasdecidedtoexpropriatethehouseswithintheexpropriationscopeofthebusplantarea(Phases1and2)project,includingChangzhouWuxing
BranchofChangchaiCo.,Ltd.,inaccordancewiththeAnnouncementofthePeople'sGovernmentofZhonglouDistrict,ChangzhouCityontheDecisionontheHousingExpropriationonState-ownedLand(ChangZhongZhengGao[2023]No.10).On14June2023,theCompanysignedtheAgreementonHousingExpropriationonChangzhouState-ownedLandandCompensationwiththeHousingandUrban-RuralDevelopmentBureauofZhonglouDistrict,ChangzhouCity,withatotalcompensationamountofRMB117million.TheCompanyreceivedcompensationofRMB70millionon28June2023andRMB47millionon9January2024,respectively.TheCompanytransferredanetfixedassetvalueofRMB7,761,500(includingRMB7,376,600forrealestatepropertyandRMB384,900forequipment),anetintangibleassetvalueofRMB4,425,000,andarevenueofRMB571,800fromequipmentsalesduetothedemolitionproject,resultinginadisposalincomeofRMB105,385,300.
51.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Incomefromdisposaloffixedassets | 222,436.80 | 236,284.29 | 222,436.80 |
| Incomefrompenalty | 10,840.00 | 93,140.00 | 10,840.00 |
| Accountsnotrequiredtobepaid | 263,791.00 | 1,714,502.08 | 263,791.00 |
| Negativegoodwillgeneratedfromconsolidatedsubsidiaries | 1,904,132.58 | ||
| Other | 430,925.85 | 309,883.70 | 430,925.85 |
| Total | 927,993.65 | 4,257,942.65 | 927,993.65 |
52.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Lossondisposaloffixedassets | 206,219.59 | 148,926.11 | 206,219.59 |
| Compensationforquality | 208,884.78 | ||
| Donation | 150,000.00 | 168,300.00 | 150,000.00 |
| Other | 826,317.95 | 92,352.67 | 826,317.95 |
| Total | 1,182,537.54 | 618,463.56 | 1,182,537.54 |
53.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 3,737,806.63 | 1,267,934.70 |
| Deferredincometaxexpense | 33,095,616.49 | 1,930,017.97 |
| Adjustmentofincometaxofprioryears | 803,234.91 | -733,872.93 |
| Total | 37,636,658.03 | 2,464,079.74 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | 152,335,013.59 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 22,850,252.04 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -4,659,894.28 |
| Influenceofincometaxbeforeadjustment | 803,234.91 |
| Influenceofnon-taxableincome | -1,824,729.50 |
| Influenceofnon-deductablecosts,expensesandlosses | 3,084,261.69 |
| InfluenceofdeductablelossesofunrecognizeddeferredincometaxatthebeginningoftheReportingPeriod | 11,073,313.06 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | 12,433,943.21 |
| Taxpreferencefromeligibleexpenditures | -6,123,723.10 |
| Incometaxexpense | 37,636,658.03 |
54.OtherComprehensiveIncomeSeeNote35fordetails.
55.CashFlowStatement
(1)CashRelatedtoOperatingActivitiesCashGeneratedfromOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 3,084,694.38 | 3,751,451.59 |
| Otherintercoursesincash | 2,744,200.31 | 4,962,530.66 |
| Interestincome | 9,008,657.82 | 12,804,077.19 |
| Recoveryoftimedepositsatmaturity | 24,000,000.00 | |
| Other | 1,245,299.28 | 1,472,234.00 |
| Total | 40,082,851.79 | 22,990,293.44 |
CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingandadministrativeexpensepaidincash | 113,682,364.61 | 89,311,871.19 |
| Handlingcharges | 1,235,742.92 | 1,212,912.33 |
| Other | 1,632,848.89 | 16,260,652.67 |
| Timedepositswithdrawn | 36,000,000.00 | |
| Othertransactions | 1,580,265.70 | 1,405,188.05 |
| Total | 154,131,222.12 | 108,190,624.24 |
(2)CashRelatedtoInvestingActivitiesCashGeneratedfromOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Cashandcashequivalentsfromconsolidatedsubsidiary | 11,400,123.61 | |
| Total | 11,400,123.61 |
(3)CashRelatedtoFinancingActivitiesCashGeneratedfromOtherFinancingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Discountofbankacceptancebillswithlowcreditrating | 128,437,700.65 | |
| Total | 128,437,700.65 |
CashUsedinOtherFinancingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Cashpaidforacquiringequityofminorityshareholdersofsubsidiaries | 7,170,000.00 | |
| Discountofbankacceptancebillswithlowcreditrating | 110,000,000.00 | 83,623,545.07 |
| Total | 117,170,000.00 | 83,623,545.07 |
Changesinliabilitiesarisingfromfinancingactivities
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Cashchanges | Non-cashchanges | Cashchanges | Non-cashchanges | |||
| Short-termborrowings | 115,437,700.65 | 1,700,774.35 | 117,138,475.00 | |||
| Otherpayables-dividendspayable | 3,891,433.83 | 7,056,925.07 | 7,056,925.07 | 3,891,433.83 | ||
| Total | 119,329,134.48 | 8,757,699.42 | 124,195,400.07 | 3,891,433.83 | ||
(4)SignificantActivitiesandFinancialImpactthatDoNotInvolveCurrentCashReceiptsandDisbursementsbutAffecttheCompany'sFinancialPositionorMayAffecttheCompany'sCashFlowsintheFuture
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Amountofendorsedandtransferrednotesreceivable | 389,860,848.07 | 464,117,398.34 |
| Ofwhich:paymentforgoods | 374,911,776.69 | 454,244,525.52 |
| Paymentforacquisitionoflong-termassetsincludingfixedassets | 14,949,071.38 | 9,872,872.82 |
56.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
| Netprofit | 114,698,355.56 | 79,246,132.46 |
| Add:Provisionforimpairmentofassets | 28,066,067.40 | 17,320,938.00 |
| Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 88,980,118.41 | 79,926,656.97 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 7,081,433.87 | 5,824,591.44 |
| Amortizationoflong-termdeferredexpenses | 349,871.11 | 175,893.01 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -105,702,551.01 | -393,161.73 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | -16,217.21 | -87,358.18 |
| Lossesonthechangesinfairvalue(gainsby“-”) | -49,816,098.68 | -145,243,457.17 |
| Financialexpenses(gainsby“-”) | -644,213.13 | 2,146,237.77 |
| Investmentlosses(gainsby“-”) | -24,812,224.86 | -17,211,920.32 |
| Decreaseindeferredincometaxassets(increaseby“-”) | 24,701,580.14 | -15,400,115.80 |
| Increaseindeferredincometaxliabilities(decreaseby“-”) | 8,394,036.35 | 17,330,133.77 |
| Decreaseininventory(increaseby“-”) | -245,117,199.69 | 89,813,152.96 |
| Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | 27,662,484.38 | -33,140,187.50 |
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 263,364,384.71 | 286,526,874.74 |
| Other | -1,904,132.58 | |
| Netcashflowsgeneratedfromoperatingactivities | 137,189,827.35 | 364,930,277.84 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | ||
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | ||
| Endingbalanceofcash | 971,629,523.46 | 810,350,966.05 |
| Less:Beginningbalanceofcash | 810,350,966.05 | 562,402,221.59 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 161,278,557.41 | 247,948,744.46 |
(2)CashandCashEquivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 971,629,523.46 | 810,350,966.05 |
| Including:Cashonhand | 157,238.05 | 251,965.06 |
| Bankdepositondemand | 963,604,998.68 | 806,914,999.19 |
| Othermonetaryassetsondemand | 7,867,286.73 | 3,184,001.80 |
| Accountsdepositedinthecentralbankavailableforpayment | ||
| Depositsinotherbanks | ||
| Accountsofinterbank | ||
| II.Cashequivalents | ||
| Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
| III.Endingbalanceofcashandcashequivalents | 971,629,523.46 | 810,350,966.05 |
(3)MonetaryAssetsNotClassifiedasCashandCashEquivalents
Unit:RMB
Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup
Item
| Item | Amountduringthecurrentperiod | Previousperiod | Reasonfornotclassifyingtheitemascashandcashequivalents |
| Bankdeposits-fixedtimedepositsover3months | 36,000,000.00 | 24,000,000.00 | Timedepositsinbanksnotheldtomeetshort-termcashrequirementsforexternalpayments |
| Othermonetaryassts-cashdeposit | 76,238,443.41 | 95,662,384.92 | Banker'sacceptancedeposit,environmentalperformancebonds,etc. |
| Total | 112,238,443.41 | 119,662,384.92 |
57.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | -- | -- | |
| Ofwhich:USD | 13,417,315.17 | 7.0827 | 95,030,818.16 |
| HKD | 330,722.07 | 0.9062 | 299,700.34 |
| Accountsreceivable | |||
| Ofwhich:USD | 7,812,701.09 | 7.0827 | 55,335,018.01 |
| GBP | -67,212.27 | 9.0411 | -607,672.85 |
| Accountspayable | |||
| Ofwhich:USD | 302.60 | 7.0827 | 2,143.23 |
| Contractliabilities | |||
| Ofwhich:USD | 521,382.67 | 7.0827 | 3,692,797.06 |
| EUR | 117,145.84 | 7.8592 | 920,672.58 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
58.Lease
(1)TheCompanyWasLessee:
√Applicable?NotapplicableVariableleasepaymentsnotincludedinthemeasurementofleaseliabilities?Applicable√NotapplicableSimplifiedhandlingofshort-termleasingorleasingcostsforlowvalueassets
√Applicable?NotapplicableThesimplifiedleasingmethodadoptedbyourcompanyismainlyforleasedproperties.Duetotheshortleasetermandlowindividualleasingcosts,inaccordancewiththenewleasingstandards,ourcompanyhasnotrecognizedtherightofuseassetsandleasingliabilitiesfortheaforementionedleasingactivities.Situationsinvolvingafter-salesleasebacktransactions:Notapplicable
(2)TheCompanyWasLessor:
OperatingleaseswiththeCompanyaslessor
√Applicable?Notapplicable
Unit:RMB
| Item | Rentalincome | Ofwhich:incomerelatedtovariableleasepaymentsnotincludedinleasereceipts |
| Leaseincome | 3,279,654.67 | |
| Total | 3,279,654.67 |
FinanceleaseswiththeCompanyaslessor?Applicable√NotapplicableUndiscountedleasereceiptsforeachofthenextfiveyears?Applicable√NotapplicableReconciliationofundiscountedleasereceiptstonetinvestmentinleases:Notapplicable
(3)RecognitionofGainorLossonSalesunderFinanceLeaseswiththeCompanyasaManufacturerorDistributor
□Applicable√Notapplicable
VIII.ResearchandDevelopmentExpenditure
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Directinput | 51,504,815.69 | 43,996,939.37 |
| Employeeremuneration | 24,744,156.04 | 24,608,063.95 |
| Depreciationandamortization | 4,895,983.48 | 4,570,577.95 |
| Outsourcingdevelopmentfees | 684,195.77 | 6,509,898.89 |
| Others | 8,509,953.35 | 1,554,116.90 |
| Total | 90,339,104.33 | 81,239,597.06 |
| Ofwhich:Expensedresearchanddevelopmentexpenditure | 90,339,104.33 | 81,239,597.06 |
| Capitalizedresearchanddevelopmentexpenditure |
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
| Name | Registeredcapital | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 85,000,000.00 | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 55,063,000.00 | Changzhou | Changzhou | Industry | 99.00% | 1.00% | Set-up |
| ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 10,000,000.00 | Changzhou | Changzhou | Industry | 75.00% | 25.00% | Set-up |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 37,250,000.00 | Changzhou | Changzhou | Industry | 100.00% | Combinationnotunderthesamecontrol | |
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 2,000,000.00 | Zhenjiang | Zhenjiang | Industry | 49.00% | Combinationnotunderthesamecontrol | |
Explanation:theCompanyoriginallyholds41.5%ofthesharesinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,andcurrentlyholds49%ofsharesinitafteracquisitionof7.5%ofsharesoriginallyheldbyothershareholdersinthisyear.Ourcompanyisthelargestshareholder,andtheothershareholdersarerelativelyscattered.Amongthe7membersoftheboardofdirectorsofZhenjiangSiyang,4aredispatchedbyourcompany.ThechairmanofZhenjiangSiyangisdispatchedbyourcompany,andourcompanyistheactualcontrollerofZhenjiangSiyang,whichconstitutestheconditionsformerger.
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 104,717.86 | 19,810,361.11 | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 51.00% | 6,098,030.65 | 51,310,847.24 |
Holdingproportionofnon-controllinginterestsinsubsidiarydifferentfromvotingproportion:Notapplicable
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 41,179,375.84 | 22,351,977.78 | 63,531,353.62 | 13,584,154.77 | 13,584,154.77 | 47,133,617.16 | 23,228,110.09 | 70,361,727.25 | 21,097,619.13 | 21,097,619.13 | ||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 94,747,199.90 | 26,468,620.63 | 121,215,820.53 | 20,295,436.96 | 310,879.17 | 20,606,316.13 | 82,697,983.58 | 28,045,494.39 | 110,743,477.97 | 20,235,256.17 | 322,701.42 | 20,557,957.59 |
Unit:RMB
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 43,364,246.66 | 261,794.64 | 261,794.64 | -8,451,013.52 | 34,281,252.72 | -652,107.80 | -652,107.80 | 650,437.03 |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 66,935,156.33 | 10,423,984.02 | 10,423,984.02 | 1,349,693.24 | 35,440,983.37 | 4,824,237.05 | 4,824,237.05 | -9,291,537.82 |
2.TheTransactionoftheCompanywithItsOwner'sEquityShareChangingbuttheCompanyStillControlstheSubsidiary
(1)NotetotheOwner'sEquityShareChangedinSubsidiaryTheCompany’sshareholdinginZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.wasoriginally41.5%,andnowstandsat49%afteracquiring7.5%ofothershareholders’equityduringtheReportingPeriod.
(2)TheTransaction’sInfluenceontheEquityofNon-controllingInterestsandtheOwner'sEquityAttributabletotheCompanyastheParent
Unit:RMB
| Item | Amount |
| Purchasecost/disposalconsideration | 7,170,000.00 |
| -Cash | 7,170,000.00 |
| -Fairvalueofnon-cashassets | |
| Totalpurchasecost/disposalconsideration | 7,170,000.00 |
| Less:Shareofnetassetsofsubsidiariesbasedonpercentageofequityacquired/disposedof | 7,545,712.83 |
| Difference | -375,712.83 |
| Ofwhich:Adjustingcapitalreserve | -375,712.83 |
| Adjustingsurplusreserve | |
| Adjustingretainedearnings |
3.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018and3December2020,newpartnerswererespectivelyadded.PartnershipSharestransferwasmadeon29December2022and10October2023.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhu,TongYinxin,AnhuiHaiyunzhouEquityInvestmentPartnershipEnterprise(Limited),ShenzhenJiaxinOneVentureCapitalPartnership(limitedpartnership),ZhongWendeandQingdaoYinjiahuiIndustrialInvestmentPartnershipEnterprise(LimitedPartnership).InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.X.GovernmentGrants
1.GovernmentGrantsRecognizedattheEndoftheReportingPeriodattheAmountReceivable
□Applicable?NotapplicableReasonsforfailingtoreceivegovernmentgrantsintheestimatedamountattheestimatedpointintime
□Applicable?Notapplicable
2.LiabilityItemsInvolvingGovernmentGrants?Applicable□Notapplicable
| Accountingitems | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Deferred | 36,205,625 | 3,409,729. | 32,795,896 | Relatedto |
| income | .94 | 46 | .48 | assets |
3.GovernmentGrantsRecognizedasCurrentProfitorLoss?Applicable□Notapplicable
Unit:RMB
| Accountingitems | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Otherincome | 6,419,303.33 | 7,159,002.46 |
XI.TheRiskRelatedtoFinancialInstruments
1.VariousTypesofRisksArisingfromFinancialInstrumentsThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRiskCreditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.(II)LiquidityRiskLiquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.(III)MarketRiskMarketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,includingforeignexchangeraterisk,interestraterisk.
1.InterestRateRiskInterestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRiskForeignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.
2.FinancialAssets
(1)ClassificationofTransferMethods?Applicable□Notapplicable
Unit:RMB
| Transfermethod | Natureoftransferredfinancialassets | Amountoftransferredfinancialassets | Recognitionterminationornot | Basisforrecognitiontermination |
| Endorsement/discount | Notesreceivable | 55,979,832.64 | Notderecognized | TheCompanyretainssubstantiallyalloftherisksandrewards,includingtheriskofdefaultassociatedwithits |
| Endorsement/discount | Accountsreceivablefinancing | 567,763,410.38 | Derecognized | TheCompanytransfersalmostalltherisksandrewards |
| Total | 623,743,243.02 |
(2)FinancialAssetsDerecognizedduetoTransfer?Applicable□Notapplicable
Unit:RMB
| Item | Transfermethodoffinancialassets | Amountofderecognizedfinancialassets | Gainsorlossesrelatedtoderecognization |
| Accountsreceivablefinancing | Endorsement | 163,147,260.38 | |
| Accountsreceivablefinancing | Discount | 404,616,150.00 | -5,709,875.91 |
| Total | 567,763,410.38 | -5,709,875.91 |
(3)ContinuedInvolvementintheTransferofAssetsFinancialAssets?Applicable□Notapplicable
Unit:RMB
| Item | Transfermethodofassets | Amountofassetsresultingfromcontinuedinvolvement | Amountofliabilitiesresultingfromcontinuedinvolvement |
| Notesreceivable | Endorsement | 55,979,832.64 | 55,979,832.64 |
| Total | 55,979,832.64 | 55,979,832.64 |
XII.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 85,295,021.00 | 140,346,408.94 | 225,641,429.94 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 85,295,021.00 | 140,346,408.94 | 225,641,429.94 | |
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 85,295,021.00 | 85,295,021.00 | ||
| (3)Derivativefinancialassets | ||||
| Wealthmanagementinvestments | 140,346,408.94 | 140,346,408.94 | ||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherinvestmentsindebtobligations | ||||
| (III)Otherequityinstrumentinvestment | 551,031,000.00 | 418,457,025.67 | 969,488,025.67 | |
| (IV)Investment | ||||
| property | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuserightheldandplannedtobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Accountsreceivablefinancing | 195,875,948.92 | 195,875,948.92 | ||
| Othernon-currentfinancialassets | 412,914,576.80 | 412,914,576.80 | ||
| Totalassetsconsistentlymeasuredbyfairvalue | 636,326,021.00 | 140,346,408.94 | 1,027,247,551.39 | 1,803,919,981.33 |
| (VI)Tradingfinancialliabilities | ||||
| Ofwhich:Issuedtradingbonds | ||||
| Derivativefinancialliabilities | ||||
| Other | ||||
| (VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
| Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
| II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
| (1)Assetsheldforsale |
| Totalassetsinconsistentlymeasuredbyfairvalue |
| Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Forthelistedcompanystocksheldbythecompanyintheheld-for-tradingfinancialassetsmeasuredatfairvalue,theclosingmarketpriceonthebalancesheetdatewasthebasisforthemeasurementoffairvalue.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Wealthmanagementandinvestment:Theunderlyingassetsofinvestmentinwealthmanagementproductsincludebondassets,depositassets,fundassets,etc.Theportfolioofinvestmentassetsshouldbedynamicallymanaged.Thefairvalueofwealthmanagementproductsshouldbeadjustedaccordingtotheyieldofsimilarproductsprovidedbythecounterparty.
4.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)Accountsreceivablefinancing:Accountsreceivablefinancingisabankacceptancewithhighcreditrating,shortmaturityandlowrisk.Theparamountisclosetothefairvalueandisusedasthefairvalue.
(2)Amongtheothernon-currentfinancialassets:fortheinvestmentsinequityinstrumentofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,JiangsuHorizonNewEnergyTechnologyCo.,Ltd.entrustedanappraisalagencytoevaluatethevalueofallitsshareholders’equityduetotheneedforcapitalincreaseandshareexpansionin2023,andconfirmedthepremiumrateofcapitalincreasebasedontheappreciationrateoftheequityvalue.Thecompany’snewinvestorssignedthecapitalincreaseagreementson27September2023.Therefore,thefairvalueoftheequityinvestmenthadbeenadjustedandconfirmedaccordinglybasedonthepremiumrateofthenewroundoffinancing.Andanappraisalagencywashiredtoconductanappraisaltoconfirm
(3)Amongotherequityinvestmentinstruments,thetotalinvestmentinChengduChangwanDieselEngineDistributionCo.,Ltd.,ChongqingWanzhouChangwanDieselEnginePartsCo.,Ltd.,ChangzhouEconomicandTechnologicalDevelopmentCompany,ChangzhouTractorCompany,ChangzhouEconomicCommissionIndustrialCapitalMutualAidAssociation,BeijingEngineeringMachineryAgriculturalMachineryCompanywasRMB1.21million,andthefairvaluewasRMB0.00duetothedifficultyinrecoveringtheinvestment.SinceitsestablishmentinOctober2017,ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)hadincreasedtheequityofpartnersattheendoftheyearduetothechangeinfairvalueoftheequityheldbyit.Inaddition,thecompany'sbusinessenvironment,operatingconditions,andfinancialstatushadnotundergonemajorchanges.Therefore,thecompanydetermineditsfairvalueonthebasisofthenetbookassetsof
thepartnershipattheendoftheperiod.
5.SensitivenessAnalysisonUnobservableParametersandAdjustmentInformationbetweenBeginningandEndingCarryingValueofConsistentFairValueMeasurementItemsatLevel3Notapplicable
6.ExplaintheReasonforConversionandtheGoverningPolicywhentheConversionHappensifConversionHappensamongConsistentFairValueMeasurementItemsatDifferentLevelsNotapplicable
7.ChangesintheValuationTechniqueintheCurrentPeriodandtheReasonforSuchChangesNotapplicable
8.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValueThefinancialassetsandliabilitiesmeasuredatamortizationcostmainlyincludenotesreceivable,accountsreceivable,otherreceivables,short-termborrowings,accountspayable,otherpayables,etc.Thedifferencebetweenthecarryingvalueandfairvalueforfinancialassetsandliabilitiesnotmeasuredatfairvalueissmall.
9.OtherDuringtheyear,therewasnoconversionbetweenLevel1andLevel2,norwasthereanytransfertoorfromLevel3forthefairvaluemeasurementoftheCompany'sfinancialassetsandfinancialliabilities.
XIII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
| ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement | RMB1.2billion | 32.26% | 32.26% |
Notes:InformationontheCompanyastheparentTheparentcompanyoftheCompanyisChangzhouInvestmentGroupCo.,Ltd.AccordingtotheguidingprincipleoftheNoticeofProvincialGovernmentonIssuingtheImplementationPlanforTransferringPartofState-ownedCapitaltoBoostSocialSecurityFundinJiangsuProvince(SZF[2020]No.27),theNoticeonTransferringPartofState-ownedCapitaltoCitiesandCountiestoBoostSocialSecurityFund(SCGM[2020]No.
139)fromtheDepartmentofFinanceofJiangsuProvinceandotherfivedepartmentsandtheNoticeonTransferringPartofState-ownedCapitalatUrban(District)LeveltoBoostSocialSecurityFund(CCGM[2020]No.4)fromChangzhouFinanceBureauandotherfourdepartments,the10%state-ownedequityoftheInvestmentGroupheldbyChangzhouMunicipalPeople'sGovernmentistransferredtotheDepartmentofFinanceofJiangsuProvincefreeofcharge.Afterthesharetransfer,ChangzhouPeople’sGovernmentholds90%state-ownedequityoftheInvestmentGroupandtheDepartmentofFinanceofJiangsuProvinceholds10%state-ownedequityoftheInvestmentGroup.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),ChangzhouInvestmentGroupCo.,Ltd.isanenterprisewhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteIXfordetails.
3、SituationofjointventuresandassociatedenterprisesofthecompanyNone
4.InformationonOtherRelatedParties
(excluding
financialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc.Name
| Name | RelationshipwiththeCompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
5.RelatedPartyTransactions
(1)Compensationforkeymanagementpersonnel
Unit:RMB
| Item | Currentamountincurred | Amountincurredinthepreviousperiod |
| Compensationforkeymanagementpersonnel | 7,820,700.00 | 7,110,100.00 |
XIV.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof31December2023,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDateNone
(2)InDespiteofnoSignificantContingencytoDisclose,theCompanyShallAlsoMakeRelevantStatementsTherewasnosignificantcontingencyintheCompany.XV.EventsafterBalanceSheetDate
1.ProfitDistribution
Unit:RMB
| Dividendtobedistributedforevery10shares(RMB) | 0.47 |
| Bonussharestobedistributedforevery10shares(share) | 0 |
| Additionalsharestobeconvertedfromcapitalreserveforevery10shares(share) | 0 |
| Dividendforevery10shares(RMB)declaredafterreviewandapproval | 0.47 |
| Bonussharestobedistributedforevery10shares(share)declaredafterreviewandapproval | 0 |
| Additionalsharestobeconvertedfromcapitalreserveforevery10shares(share)declaredafterreviewandapproval | 0 |
| Profitdistributionplan | BasedonthetotalsharecapitalofthecompanyasofDecember31,2023,acashdividendofRMB0.47(includingtax)willbedistributedtoallshareholders |
2.SalesReturnNone
3.NotestoOtherEventsafterBalanceSheetDateTherewasnoothereventafterbalancesheetdate.
XVI.OtherSignificantEvents
1.TheAccountingErrorsCorrectioninPreviousPeriod
(1)RetrospectiveRestatementNone
(2)ProspectiveApplicationNone
2.DebtRestructuringNotapplicable
3.AssetsReplacementNotapplicable
4.PensionPlansNotapplicable
5.DiscontinuedOperationsNotapplicable
6.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegmentDuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommon
management,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
7.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-makingThePeople'sGovernmentofXinbeiDistrict,ChangzhouCitydecidedtoexpropriatethehouseswithintheexpropriationscopeoftheoldcityrenovationprojectonthelandofthesingle-cylinderengineplantofChangchaiCo.,Ltd.(hereinafterreferredtoasthe"Company"),namely,ChangzhouSanjingBranchofChangchaiCo.,Ltd.,inaccordancewiththeAnnouncementofthePeople'sGovernmentofXinbeiDistrict,ChangzhouCityontheDecisionontheHousingExpropriationonState-ownedLand(ChangZhongZhengGao[2022]No.6).On29November2023,theCompanysignedthecompensationagreementwiththeHousingandUrban-RuralDevelopmentBureauofChangzhouNationalHigh-techIndustrialDevelopmentZoneandtheHousingExpropriationandCompensationServiceCentreofSanjingStreet,XinbeiDistrict,ChangzhouCity(hereinafterreferredtoas"SanjingStreet").ThetotalcompensationamountundertheagreementwasRMB99,929,868.Accordingtothepaymentmethodstipulatedinthecompensationagreement,theCompanyreceivedthefirstcompensationpayment(30%ofthecompensation)ofRMB30,000,000(includingRMB1,000,000receivedon29December2023(Presentedinadvancereceiptsonaccount)andRMB29,000,000receivedon3January2024).XVII.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 289,665,029.12 | 304,249,429.01 |
| Onetotwoyears | 1,642,898.19 | 25,731,843.18 |
| Twotothreeyears | 4,274,309.13 | 4,391,594.73 |
| Morethanthreeyears | 103,238,762.39 | 105,760,358.81 |
| Threetofouryears | 4,376,325.51 | 2,917,847.46 |
| Fourtofiveyears | 1,398,123.34 | 2,658,953.02 |
| Over5years | 97,464,313.54 | 100,183,558.33 |
| Total | 398,820,998.83 | 440,133,225.73 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 21,058,702.18 | 5.28% | 21,058,702.18 | 100.00% | 27,364,067.34 | 6.22% | 21,607,429.50 | 78.96% | 5,756,637.84 | |
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 377,762,296.65 | 94.72% | 85,765,458.71 | 22.70% | 291,996,837.94 | 412,769,158.39 | 93.78% | 89,464,855.73 | 21.67% | 323,304,302.66 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 377,762,296.65 | 94.72% | 85,765,458.71 | 22.70% | 291,996,837.94 | 412,769,158.39 | 93.78% | 89,464,855.73 | 21.67% | 323,304,302.66 |
| Total | 398,820,998.83 | 100.00% | 106,824,160.89 | 26.78% | 291,996,837.94 | 440,133,225.73 | 100.00% | 111,072,285.23 | 25.24% | 329,060,940.50 |
Numberofcategoriesofbaddebtprovisionbyindividualitem:1Baddebtprovisionseparatelyaccrued:RMB21,058,702.18,ofwhich:RMB19,019,243.10forlargeimpairmentriskitems
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer2 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer3 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer4 | 2,797,123.26 | 2,194,980.28 | 2,797,123.26 | 2,797,123.26 | 100.00% | Difficulttorecover |
| Customer5 | 3,633,081.23 | 2,122,165.73 | 2,322,278.50 | 2,322,278.50 | 100.00% | Difficulttorecover |
| Customer6 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer7 | 1,731,493.71 | 1,731,493.71 | 1,726,935.65 | 1,726,935.65 | 100.00% | Difficulttorecover |
| Total | 20,334,603.89 | 18,221,545.41 | 19,019,243.10 | 19,019,243.10 | -- | -- |
Numberofcategoriesofbaddebtprovisionbygroup:1Withdrawalofbaddebtprovisionbygroup:thebaddebtprovisionofRMB85,765,458.71withdrawnaccordingtocreditriskcharacteristicgroup,asshownbelow
Unit:RMB
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 289,665,029.12 | 5,793,300.58 | 2.00% |
| 1to2years | 1,642,898.19 | 82,144.91 | 5.00% |
| 2to3years | 3,732,046.47 | 559,806.97 | 15.00% |
| 3to4years | 4,376,325.51 | 1,312,897.65 | 30.00% |
| 4to5years | 821,721.89 | 493,033.13 | 60.00% |
| Over5years | 77,524,275.47 | 77,524,275.47 | 100.00% |
| Total | 377,762,296.65 | 85,765,458.71 | |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheCurrentPeriod
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionaccruedbyitem | 21,607,429.50 | 190,820.08 | 37,668.24 | 701,879.16 | 21,058,702.18 | |
| Withdrawalofbaddebtprovisionbygroup | 89,464,855.73 | 3,283,503.08 | 415,893.94 | 85,765,458.71 | ||
| Total | 111,072,285.23 | 190,820.08 | 3,321,171.32 | 1,117,773.10 | 106,824,160.89 | |
Ofwhichsignificantamountofrecoveredortransferred-backbaddebtprovisionforthecurrentperiod:None
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Accountsreceivablewithactualverification | 1,117,773.10 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
| Nameoftheentity | Nature | Amountverified | Reason | Performanceof | Whether |
| verificationprocedures | generatedfromrelated-partytransaction | ||||
| Customer1 | Accountsreceivableforgoods | 42,099.41 | Debtreorganisation | Reorganizationagreement | Not |
| Customer2 | 659,779.75 | Debtreorganisation | Reorganizationagreement | ||
| Longtermreceivablesfrom94customers | 415,893.94 | Withaccountsreceivableagingover5years,thedebtorshavenoassetsfordebtextinguishmentduetothecounterpartcompanybeingrevokedorcancelled,ordebtreorganisation,bankruptcyclearing. | Minutesoftheexecutiveoffice | ||
| Total | 1,117,773.10 | -- | -- | -- |
(5)Top5oftheEndingBalanceofAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 155,981,057.12 | 0.00 | 155,981,057.12 | 39.11% | 3,119,621.14 |
| Customer2 | 35,865,520.31 | 0.00 | 35,865,520.31 | 8.99% | 717,310.41 |
| Customer3 | 30,056,545.72 | 0.00 | 30,056,545.72 | 7.54% | 601,130.91 |
| Customer4 | 18,140,927.66 | 0.00 | 18,140,927.66 | 4.55% | 362,818.55 |
| Customer5 | 13,769,193.20 | 0.00 | 13,769,193.20 | 3.45% | 275,383.86 |
| Total | 253,813,244.01 | 0.00 | 253,813,244.01 | 63.64% | 5,076,264.87 |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 399,142,024.92 | 179,596,495.57 |
| Total | 399,142,024.92 | 179,596,495.57 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| CashdepositandMargin | 1,300.00 | 1,300.00 |
| Intercoursefundsamongunits | 433,589,441.68 | 214,624,107.53 |
| Pettycashandborrowingsbyemployees | 884,233.75 | 671,817.84 |
| Other | 13,638,079.94 | 13,635,256.64 |
| Total | 448,113,055.37 | 228,932,482.01 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 308,824,779.36 | 182,815,353.08 |
| Onetotwoyears | 113,974,034.71 | 16,778,473.11 |
| Twotothreeyears | 12,802.00 | 99,076.00 |
| Morethanthreeyears | 25,301,439.30 | 29,239,579.82 |
| Threetofouryears | 30,000.00 | 420,716.17 |
| Fourtofiveyears | 333,939.40 | |
| Over5years | 25,271,439.30 | 28,484,924.25 |
| Total | 448,113,055.37 | 228,932,482.01 |
3)DisclosurebyWithdrawalMethodsforBadDebtsWithdrawalofbaddebtprovisionbyadoptingthegeneralmodeofexpectedcreditloss:
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 26,186.99 | 209,876.70 | 49,099,922.75 | 49,335,986.44 |
| Balanceof1January2023intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage |
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | 20,686.21 | 20,686.21 | ||
| ReversaloftheCurrentPeriod | 193,167.60 | 192,474.60 | 385,642.20 | |
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof31December2023 | 46,873.20 | 16,709.10 | 48,907,448.15 | 48,971,030.45 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 25,757,409.37 | 3,912,775.31 | 21,844,634.06 | |||
| Baddebtprovisionwithdrawnbygroup | 23,578,577.07 | 3,547,819.32 | 27,126,396.39 | |||
| Total | 49,335,986.44 | 3,547,819.32 | 3,912,775.31 | 48,971,030.45 | ||
Ofwhichthebaddebtprovisionrecoveredortransferred-backwithsignificantamountduringthecurrentperiod:
Unit:RMB
| Nameoftheentity | Amountreversedorrecovered | Reasonforreversal | Wayofrecovery | Basisandrationalityofdeterminingtheoriginalwithdrawalproportionofbaddebtprovision |
| Changzhou | 3,679,061.18 | Repayment | Cash | Subsidiaryis |
| ChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | insolvent | ||
| Total | 3,679,061.18 |
5)ThereWereNoOtherReceivableswithActualVerificationduringtheReportingPeriod
6)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| JiangsuChangchaiMachineryCo.,Ltd. | Intercoursefunds | 340,703,369.25 | Within1year:245703369.25;1-2years:95000000.00 | 76.03% | |
| ChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureau | CompensationforlandacquisitionofWuxingbusplantareaplot | 47,000,000.00 | Within1year | 10.49% | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 16,542,062.75 | Within1year:6683804.04;1-2years:9858258.71 | 3.69% | 16,542,062.75 |
| ChangzhouChangniuMachineryCo.,Ltd. | Intercoursefunds | 9,000,000.00 | 1-2years | 2.01% | |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 0.66% | 2,940,000.00 |
| Total | -- | 416,185,432.00 | 92.88% | 19,482,062.75 |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 583,443,530.03 | 7,000,000.00 | 576,443,530.03 | 576,273,530.03 | 7,000,000.00 | 569,273,530.03 |
| Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
| Total | 583,487,712.53 | 7,044,182.50 | 576,443,530.03 | 576,317,712.53 | 7,044,182.50 | 569,273,530.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | Endingbalance(Carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofimpairmentprovision | Others | |||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | ||||||
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | ||||||
| ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | 40,000,000.00 | ||||||
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 0.00 | 7,000,000.00 | 0.00 | 7,000,000.00 | ||||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | ||||
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | 300,000,000.00 | ||||
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | ||||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 33,520,800.00 | 7,170,000.00 | 40,690,800.00 | |||
| Total | 569,273,530.03 | 7,000,000.00 | 7,170,000.00 | 576,443,530.03 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | Endingbalance(Carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Others | |||||
| I.Jointventures | ||||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| II.Associatedenterprises | ||||||||||||
| BeijingTsinghuaXingy | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
| eIndustrialInvestmentManagementCo.,Ltd. | |||||
| Subtotal | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |
| Total | 0.00 | 44,182.50 | 0.00 | 44,182.50 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,978,548,527.91 | 1,726,267,965.41 | 1,937,402,949.98 | 1,743,767,173.55 |
| Otheroperations | 78,572,385.42 | 61,861,919.26 | 51,070,094.57 | 40,578,530.55 |
| Total | 2,057,120,913.33 | 1,788,129,884.67 | 1,988,473,044.55 | 1,784,345,704.10 |
Breakdowninformationofoperatingincomeandoperatingcost:
Unit:RMB
| Categoryofcontracts | Segment1 | Total | ||
| OperatingRevenue | Operatingcost | OperatingRevenue | Operatingcost | |
| BusinessType | ||||
| Ofwhich: | ||||
| Single-cylinderdieselengines | 1,099,244,653.24 | 938,065,401.52 | 1,099,244,653.24 | 938,065,401.52 |
| Multi-cylinderdieselengines | 796,114,105.16 | 713,613,118.19 | 796,114,105.16 | 713,613,118.19 |
| Otherproducts | 47,669,282.15 | 41,574,102.80 | 47,669,282.15 | 41,574,102.80 |
| Fittings | 35,520,487.36 | 33,015,342.90 | 35,520,487.36 | 33,015,342.90 |
| Classificationbyoperatingregion | ||||
| Ofwhich: | ||||
| Salesindomesticmarket | 1,695,721,360.88 | 1,458,279,907.37 | 1,695,721,360.88 | 1,458,279,907.37 |
| Exportsales | 282,827,167.03 | 267,988,058.04 | 282,827,167.03 | 267,988,058.04 |
| Total | 1,978,548,527.91 | 1,726,267,965.41 | 1,978,548,527.91 | 1,726,267,965.41 |
Informationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0attheperiod-end.
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 11,482,380.00 | 9,360,000.00 |
| Incomefromrefinancingoperations | 28,498.48 | 136,003.96 |
| Dividendsundercostaccounting | 28,800,000.00 | |
| Interestincomefromholdingofdebtobligationinvestments | 1,463,921.82 | 1,411,361.54 |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 7,022,401.48 | 5,408,606.17 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -4,894,619.98 | -8,511,313.05 |
| Total | 15,102,581.80 | 36,604,658.62 |
XVIII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets | 105,702,551.01 | Duetotheexpropriationofhousesonthestate-ownedlandofChangzhouWuxingBranchduringtheReportingPeriod |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 3,009,573.87 | GovernmentgrantschargedtocurrentprofitandlossamountedtoRMB6,419,303.33,theamountdeductingdeferredincomeandchargedtocurrentprofitandlosswasRMB3,409,729.46. |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andavailable-for-salefinancialassets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 74,628,323.54 | IncreaseinthefairvalueofthestocksofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.heldbytheCompany,salesofstocksofGuilinStarsScienceandTechnologyCo.,Ltd.bytheCompany’swholly-ownedsubsidiaryHorizonInvestmentandpricerisingofstocksofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd.heldbytheCompanyduringtheReportingPeriod |
| Reverseofprovisionforimpairmentofaccountsreceivableindividuallyconductingimpairmenttest | 21,618.24 | |
| Othernon-operatingincomeandexpensesotherthantheabove | -254,543.89 | |
| Less:Incometaxeffects | 27,193,473.11 | |
| Non-controllinginterestseffects(aftertax) | -47,741.93 | |
| Total | 155,961,791.59 | -- |
Othersthatmeetsthedefinitionofnon-recurringgain/loss:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ExplainthereasonsiftheCompanyclassifiesanyextraordinarygain/lossitemmentionedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasarecurrentgain/lossitem
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 3.19% | 0.1537 | 0.1537 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -1.40% | -0.0676 | -0.0676 |
3.DifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards
(1)DifferencesbetweenDisclosedNetProfitsandNetAssetsinFinancialReportinaccordancewithInternationalAccountingStandardsandChineseAccountingStandards
□Applicable?Notapplicable
(2)DifferencesbetweenDisclosedNetProfitsandNetAssetsinFinancialReportinaccordancewithOverseasAccountingStandardsandChineseAccountingStandards
□Applicable?Notapplicable
(3)ExplainReasonsfortheDifferencesbetweenAccountingDataUnderDomesticandOverseasAccountingStandards;forAnyAdjustmentMadetotheDifferenceExistingintheDataAuditedbytheForeignAuditingAgent,SuchForeignAuditingAgent'sNameShallBeClearlyStated
□Applicable?Notapplicable
TheBoardofDirectorsChangchaiCompany,Limited
12April2024