CHANGCHAICOMPANY,LIMITED
ANNUALREPORT2019
April2020
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 3
PartIICorporateInformationandKeyFinancialInformation ...... 5
PartIIIBusinessSummary ...... 10
PartIVOperatingPerformanceDiscussionandAnalysis ...... 13
PartVSignificantEvents ...... 34
PartVIShareChangesandShareholderInformation ...... 48
PartVIIPreferredShares ...... 54
PartVIIIConvertibleCorporateBonds ...... 55
PartIXDirectors,Supervisors,SeniorManagementandStaff ...... 56
PartXCorporateGovernance ...... 63
PartXICorporateBonds ...... 71
PartXIIFinancialStatements ...... 72
PartXIIIDocumentsAvailableforReference ...... 215
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.ShiXinkun,theCompany’slegalrepresentative,ZhangXin,theCompany’sGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks.
TheCompanyhasdescribedindetailtherisksitmightfacein“PartIVOperatingPerformanceDiscussionandAnalysis”,IX,“4.PossibleRisksinFuture”herein.
TheBoardhasapprovedafinaldividendplanasfollows:basedonthe561,374,326shares,theCompanyhasnofinaldividendplan,eitherintheformofcashorstock.
ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
Definitions
Term | Definition |
The“Company”,“Changchai”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
HoushengInvestment | ChangzhouHoushengInvestmentCo.,Ltd. |
HoushengAgriculturalEquipment | ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. |
ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2019to31December2019 |
PartIICorporateInformationandKeyFinancialInformationICorporateInformation
Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
Stockexchangeforstocklisting | ShenzhenStockExchange | ||
CompanynameinChinese | 常柴股份有限公司 | ||
Abbr. | 苏常柴 | ||
CompanynameinEnglish | CHANGCHAICOMPANY,LIMITED | ||
Abbr. | CHANGCAHICO.,LTD. | ||
Legalrepresentative | ShiXinkun | ||
Registeredaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
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
NewspapersdesignatedbytheCompanyforinformationdisclosure | SecuritiesTimes,TaKungPao(HK) |
WebsitedesignatedbyCSRCforpublicationofthisReport | http://www.cninfo.com.cn |
PlacewherethisReportislodged | BoardSecretariatoftheCompanyandtheShenzhenStockExchange |
IVChangetoCompanyRegisteredInformation
Unifiedsocialcreditcode | 91320400134792410W |
ChangetoprincipalactivityoftheCompanysincegoingpublic | Nochange |
Everychangeofcontrollingshareholdersinceincorporation | On22November2018,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmenttransferreditsentireholdingsof170,845,236sharesintheCompany(astakeof30.43%)toChangzhouInvestmentGroupCo.,Ltd.fornocompensation.Thesesharesarenon-restrictedpublicshares. |
VOtherInformation
TheindependentauditfirmhiredbytheCompany:
Name | GongzhengTianyeCertifiedPublicAccountantsLLP |
Officeaddress | YingtongCommerceBuilding,Changzhou,Jiangsu,China |
Accountantswritingsignatures | DaiWeizhong,XuWenxiang |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
2019 | 2018 | 2019-over-2018change(%) | 2017 | |
Operatingrevenue(RMB) | 2,040,133,717.30 | 2,132,902,718.60 | -4.35% | 2,423,058,958.29 |
Netprofitattributabletothelistedcompany’sshareholders(RMB) | 24,934,586.11 | 62,021,374.04 | -59.80% | 46,431,302.73 |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 14,376,783.21 | -43,333,196.13 | - | 18,818,435.16 |
Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -20,542,857.52 | 273,819,526.89 | - | -121,669,279.39 |
Basicearningspershare(RMB/share) | 0.04 | 0.11 | -63.64% | 0.08 |
Dilutedearningspershare(RMB/share) | 0.04 | 0.11 | -63.64% | 0.08 |
Weightedaveragereturnonequity(%) | 1.20% | 2.84% | -1.64% | 2.00% |
31December2019 | 31December2018 | Changeof31December2019over31December2018(%) | 31December2017 | |
Totalassets(RMB) | 3,484,975,990.48 | 3,542,019,195.75 | -1.61% | 3,722,905,285.05 |
Equityattributabletothelistedcompany’sshareholders(RMB) | 2,109,239,597.94 | 2,043,308,026.74 | 3.23% | 2,246,896,857.86 |
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
3.ReasonsforAccountingDataDifferencesAbove
□Applicable√Notapplicable
VIIIKeyFinancialInformationbyQuarter
Unit:RMB
Q1 | Q2 | Q3 | Q4 | |
Operatingrevenue | 557,670,611.48 | 558,159,234.11 | 460,579,449.28 | 463,724,422.4 |
Netprofitattributabletothelistedcompany’sshareholders | 2,518,025.10 | 16,539,999.97 | 950,668.62 | 4,925,892.42 |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 1,083,678.62 | 13,143,476.97 | 197,704.53 | -48,076.91 |
Netcashgeneratedfrom/usedinoperatingactivities | -63,832,631.41 | -90,395,073.36 | -23,645,425.75 | 157,330,273.00 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√No
IXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item | 2019 | 2018 | 2017 | Note |
Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 1,914,137.47 | -265,966.68 | 1,005,800.62 | |
Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 5,312,295.51 | 6,291,685.65 | 8,456,560.85 | |
Capitaloccupationchargesonnon-financialenterprisesthatarechargedtocurrentprofitorloss | 536,504.84 | 938,737.87 | 1,200,592.21 |
GainequaltotheamountbywhichinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheCompany’senjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments | 19,924,486.12 | |||
Gainorlossonfair-valuechangesinheld-for-tradingandderivativefinancialassetsandliabilities&incomefromdisposalofheld-for-tradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -49,255.00 | 105,672,874.83 | 654,862.68 | |
Non-operatingincomeandexpenseotherthantheabove | 372,534.93 | 1,392,895.84 | -4,441,830.05 | |
Gainorlossonre-measurementbythefairvalueofequityinterestsinjointventuresbeforeacquisitiondatesinbusinesscombinationsnotundercommoncontrol | 1,751,203.43 | |||
Reversedportionsofimpairmentallowancesforentrustmentloanswhicharetestedindividuallyforimpairment | 4,000,000.00 | 10,000,000.00 | ||
Less:Incometaxeffects | 1,520,857.98 | 18,670,371.98 | 951,629.77 | |
Non-controllinginterestseffects(netoftax) | 7,556.87 | 5,285.36 | -12,821.48 | |
Total | 10,557,802.90 | 105,354,570.17 | 27,612,867.57 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod
Asamanufacturer,wespecializeinthemanufactureandsaleofdieselengines,dieselenginefittingsandcastings,gasolineengines,gasolineenginefittings,rotovators,walkingtractors,moldsandjigsaswellastheassemblyandsaleofdieselengineandgasolineenginesupportingsets.Wemainlymanufactureandsellsmallandmedium-sizedsingle-cylinderandmulti-cylinderdieselenginesunderthebrandof“Changchai”,whichareoftenusedintractors,combine-harvesters,lightcommercialvehicles,agricultureequipment,small-sizedengineeringmachinery,generatorsets,shipmachines,etc.
IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
Majorassets | Mainreasonforsignificantchanges |
Equityassets | Duringthereportingperiod,thecompanysetupawholly-ownedsubsidiary,JiangsuChangchaiMachineryCo.,Ltd.,andinvestedinJiangsuHoushengNewEnergyTechnologyCo.,Ltd. |
Othercurrentassets | TheendingamountstoodatRMB6,353,920.33,down81.51%fromthebeginningamount,primarilydrivenbyadecreaseinVATwithheld. |
2.MajorAssetsOverseas
□Applicable√NotapplicableIIICoreCompetitivenessAnalysis
1.AdvantagesinBrand
Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,ISO/TS16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorably
rankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe“JiangsuIndependentIndustriesBrandTop50”forfouryearsinarow.Also,ithasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2019,theCompanyonceagainwasgiventhetitleof“Top50IndustrialBrandsofJiangsuProvince”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“NationalModelEnterpriseforTrustworthyProductandServiceQuality”and“China’sTop500MostValuableBrands”,amongothers.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.Its4G33TCdieselenginehasbeenincludedintheprovincialcatalogofkeynewtechnologiesandproductstobepromoted.Its4G33TCand3M78dieselengineshavebeenrecognizedas“high-techproducts”attheprovinciallevel.The4G33V16Multi-CylinderDieselEnginewontheChinaAgriculturalMachineryIndustryAnnualProductInnovationAward,TheSpeedRegulatorforSingle-CylinderDieselEngines—oneoftheCompany’spatentedtechnologies,wontheChinaPatentExcellenceAward,andthreeotherproductsincludingtheH16DieselEnginewererecognizedas“High-TechProduct”atthemunicipallevel.DuringtheReportingPeriod,theCompanyfiledfor9patentsandwasgranted10patents.Currently,theCompanyhasatotalof138patentsgrantedbyauthoritiesathomeandabroad,including12inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,27salesservicecentersandover800servicestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompany
isabletoprovidehighquality,efficientandtimelyservicesforcustomers.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverviewIn2019,China’seconomicsituationwasextremelysevere,withmuchgreaterrisksandchallengesathomeandabroad.Theagriculturalmachinerymarketremainedunderdepressionduetomultiplefactorssuchaschangestotheagriculturalsubsidypolicy,stricteremissionregulationsfordieselengines,morestringentinspectionofsafetyandenvironmentalprotection,fluctuatingpricesofrawmaterials,weakerpurchasingpoweroffarmersandtheChina-U.S.tradewar.Amidthedeepchangeintheagriculturalmachineryindustryandtheharshmarketenvironment,theCompanyformulatedeffectiveoperatingstrategies,refinedtheproductmix,workedonsegmentmarkets,strengthenedqualitycontrolandenhancedinternalmanagement.Asaresult,despiteadecreasingoutputandsalesvolumeintheindustryasawhole,theCompanymanagedtomaintainstableandorderlydevelopment.Certainbusinessindicatorssuchasthesalesvolumedecreased,butslowerthantheindustryaverage.DuringtheReportingPeriod,theCompanysold675,000unitsofdieselengines,gasolineenginesandrelatedgeneratorsets,including138,100unitsofgasolineengines,generatingtotalsalesrevenueofRMB2,040,133,717.30,adropof
4.35%year-on-year.
Intermsofproductdevelopmentandsupportingareas,theCompanyhascompletedthedevelopmentofseveralmodelsofsingle-cylindercommonraildieselenginestofullymeettheStateIIIemissionstandardsofthree-wheelsandStateIVemissionstandardsofnon-roadmobilemachinery.TheCompanyhasestablishedall-roundconnectionwithindustrialmainstreambrandsforproductsofStateIVstandards.Forthekeyproduct4G36V16diesel,ithascompletedthecalibrationofemissionsourcemachinesformultipleafter-treatmentmodesandmultiplepowerranges,withadiversityofplantprotectiontractorsassupportingproducts.TheCompanydevelopedsupportingresourcesonallfronts,completedsupportingpromotionforanumberofproductmodelsandachievedmarkedgrowthinmarketalignment.
Intermsofmarketservice,theCompanyfurtheroptimizedandexpandedthefranchiseddealerteam,strengthenedthefranchiseddealernetwork,enhancedfranchiseloyalty,improvedtheaftermarketsalesandservicenetwork,developednewdealersandbeefedupthesalesandmanagementofaccessories.TheCompanycontinuedtoenhanceservicequality,fullypromotedtheexperienceofmodularmanagementofbusyfarmingseasons,intensifiedtrainingformarketservicepersonnel,mainengineplantsanddealers,exploredtheserviceapplicationofInternet+,drovetheanalysis,integrationandapplicationmanagementofqualityinformationandservicedataandimprovedtheoverallservicecapacityofserviceresources.
Intermsofqualitymanagement,theCompanyfurtherimplementedqualityprojects,refinedsystemmanagementandsuccessfullypassedtheexternalreviewforIATF16949andtheISO9001qualitysystemandtheon-sitemonitoringandreviewofCNAS.Itenhancedthequalityofwholemachinesandpartsonallfronts,madecontinuouseffortstoimproveproductquality,optimizedworkflowsinanumberofaspects,includingtestingequipment,productpartstraceabilitysystemsandqualityimprovementprojects,andrefinedprocesses,leadingtoenhancementinproductimage.
Intermsofinternalmanagement,theCompanystrengthenedproductionorganizationandmanagementaccordingtotheactualsituation,continuouslyimprovedthesupplysystem,intensifieddelicacymanagementofcostandinventory,andpromotedcostreductionandexpenditureminimizationasaresponsetothecontinuousmarketdownturn,leadingtosubstantialachievementsincostreductionandefficiencyenhancementandimprovementsinproductionandoperationefficiency.
DuringtheReportingPeriod,theCompanyestablishedJiangsuChangchaiMachineryCo.,Ltd.toimplement
lightengineandcastingrelocationprojects.ThenewsubsidiaryhasaregisteredcapitalofRMB300millionwithRMB10millionalreadypaidup.Early-stageworkoftheproject,includingfeasibilitydemonstration,planning,designandregistration,hasbeencompleted.Sofar,constructionhascommenced.Theprojectisplannedtobecompletedandputintooperationin2021.
IICoreBusinessAnalysis
1.OverviewSee“IOverview”above.
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
2019 | 2018 | Change(%) | |||
Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
Total | 2,040,133,717.30 | 100% | 2,132,902,718.60 | 100% | -4.35% |
Byoperatingdivision | |||||
Internalcombustionengines | 2,001,911,782.04 | 98.13% | 2,093,039,249.58 | 98.13% | -4.35% |
Other | 38,221,935.26 | 1.87% | 39,863,469.02 | 1.87% | -4.29% |
Byproductcategory | |||||
Dieselengines | 1,856,130,365.33 | 90.98% | 1,945,336,290.52 | 91.21% | -4.59% |
Gasolineengines | 133,936,656.91 | 6.57% | 130,329,100.71 | 6.11% | 2.77% |
Other | 50,066,695.06 | 2.45% | 57,237,327.37 | 2.68% | -12.53% |
Byoperatingsegment | |||||
Domestic | 1,726,174,312.79 | 84.61% | 1,785,012,986.06 | 83.69% | -3.30% |
Overseas | 313,959,404.51 | 15.39% | 347,889,732.54 | 16.31% | -9.75% |
(2)OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit
√Applicable□Notapplicable
Unit:RMB
Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
Byoperatingdivision | ||||||
Internalcombustionengines | 2,001,911,782.04 | 1,679,856,891.00 | 16.09% | -4.35% | -5.74% | 1.24% |
Byproductcategory | ||||||
Dieselengines | 1,856,130,365.33 | 1,560,642,195.38 | 15.92% | -4.59% | -5.65% | 0.95% |
Gasolineengines | 133,936,656.91 | 108,678,942.40 | 18.86% | 2.77% | -4.68% | 6.34% |
Other | 50,066,695.06 | 40,328,639.97 | 19.45% | -12.53% | -11.05% | -1.34% |
Byoperatingsegment | ||||||
Domestic | 1,726,174,312.79 | 1,404,826,591.91 | 18.62% | -3.30% | -4.74% | 1.24% |
Overseas | 313,959,404.51 | 304,823,185.84 | 2.91% | -9.75% | -10.01% | 0.28% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
Operatingdivision | Item | Unit | 2019 | 2018 | Change(%) |
Dieselengines | Unitsales | Unit | 536,932 | 556,443 | -3.51% |
Output | Unit | 519,339 | 562,223 | -7.63% | |
Inventory | Unit | 48,003 | 65,596 | -26.82% |
□Applicable√Notapplicable
(4)ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod
□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
Productcategory | Item | 2019 | 2018 | Change(%) | ||
Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
Dieselengines | Rawmaterials | 1,317,459,424.33 | 78.43% | 1,422,647,277.45 | 78.45% | -7.39% |
Dieselengines | Laborcost | 214,361,508.91 | 12.76% | 238,105,274.10 | 13.13% | -9.97% |
Dieselengines | Depreciation | 74,355,935.23 | 4.43% | 75,456,887.66 | 4.16% | -1.46% |
Dieselengines | Energy | 27,773,748.68 | 1.65% | 28,471,079.99 | 1.57% | -2.45% |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
√Yes□NoChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)reviewedandapprovedtheProposalonEstablishingtheWholly-ownedSubsidiarytoImplementtheProjectofProducingLightEnginesandCastingontheextraordinaryboardmeetingheldon25February2019.TheBoardagreedtheCompanytoinvestRMB0.3billionforestablishingthewholly-ownedsubsidiarytoimplementtheprojectofproducinglightenginesandcasting.Fordetails,pleaserefertotheAnnouncementontheExternalInvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-004)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon26February2019.On6March2019,thewholly-ownedsubsidiarycompletedtheregistrationproceduresandobtainedtheBusinessLicenseissuedbytheAdministrativeExaminationandApprovalAuthorityofChangzhouStateHi-TechIndustryDevelopmentZone(XinbeiDistrict).Formoredetails,pleaserefertotheAnnouncementontheProgressofExternalinvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-005)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon7March2019.Thus,theconsolidationscopeoftheReportingPeriodincreasedasubsidiary-JiangsuChangchaiMachineryCo.,Ltd.
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
(8)MajorCustomersandSuppliersMajorcustomers:
Totalsalestotopfivecustomers(RMB) | 864,536,279.47 |
Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 42.38% |
Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00 |
Informationabouttopfivecustomers:
No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
1 | Customer1 | 360,622,078.51 | 17.68% |
2 | Customer2 | 192,587,952.49 | 9.44% |
3 | Customer3 | 139,976,253.71 | 6.86% |
4 | Customer4 | 90,595,836.18 | 4.44% |
5 | Customer5 | 80,754,158.58 | 3.96% |
Total | -- | 864,536,279.47 | 42.38% |
Otherinformationaboutmajorcustomers:
□Applicable√NotapplicableMajorsuppliers:
Totalpurchasesfromtopfivesuppliers(RMB) | 239,017,892.01 |
Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 16.11% |
Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00 |
Informationabouttopfivesuppliers:
No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
1 | Supplier1 | 98,793,697.74 | 6.66% |
2 | Supplier2 | 51,409,844.73 | 3.47% |
3 | Supplier3 | 37,965,669.05 | 2.56% |
4 | Supplier4 | 28,270,929.54 | 1.91% |
5 | Supplier5 | 22,577,750.95 | 1.52% |
Total | -- | 239,017,892.01 | 16.11% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable
3.Expense
Unit:RMB
2019 | 2018 | Change(%) | Reasonforanysignificantchange | |
Sellingexpense | 97,085,117.05 | 126,997,066.87 | -23.55% |
Administrativeexpense | 106,183,133.40 | 116,027,838.96 | -8.48% |
Financecosts | -4,424,871.16 | -903,762.30 | --- |
R&Dexpenses | 66,221,376.27 | 72,182,840.78 | -8.26% |
4.R&DExpense
√Applicable□NotapplicableTheCompanyhasbeenvaluingtheR&Dofnewproductsandapplicationofnewtechnologies.Basedonthemarket-orientedpolicy,theCompanycontinuouslypromotestechnologicalupgrading,makesgreateffortstoimprovethetechnologicaldevelopmentcapacityandself-innovationcapacityandincreasestheaddedvalueofproductssoastocontinuouslyenhancetheCompany’smarketcompetitiveness.DetailsaboutR&Dexpense:
2019 | 2018 | Change(%) | |
NumberofR&Dpersonnel | 360 | 368 | -2.17% |
R&Dpersonnelas%oftotalemployees | 11.96% | 11.55% | 0.41% |
R&Dexpense(RMB) | 66,221,376.27 | 72,182,840.78 | -8.26% |
R&Dexpenseas%ofoperatingrevenue | 3.25% | 3.38% | -0.13% |
CapitalizedR&Dexpense(RMB) | 0.00 | 0.00 | --- |
CapitalizedR&Dexpenseas%oftotalR&Dexpense | 0.00% | 0.00% | --- |
ReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
Item | 2019 | 2018 | Change(%) |
Subtotalofcashgeneratedfromoperatingactivities | 2,226,972,713.23 | 2,494,609,605.84 | -10.73% |
Subtotalofcashusedinoperatingactivities | 2,247,515,570.75 | 2,220,790,078.95 | 1.20% |
Netcashgeneratedfrom/usedinoperatingactivities | -20,542,857.52 | 273,819,526.89 | —— |
Subtotalofcashgeneratedfrominvestingactivities | 20,016,934.88 | 157,994,762.83 | -87.33% |
Subtotalofcashusedininvestingactivities | 98,179,310.79 | 51,775,807.81 | 89.62% |
Netcashgeneratedfrom/usedininvestingactivities | -78,162,375.91 | 106,218,955.02 | —— |
Subtotalofcashgeneratedfromfinancingactivities | 34,000,000.00 | 40,700,000.00 | -16.46% |
Subtotalofcashusedinfinancingactivities | 78,505,058.96 | 58,922,496.75 | 33.23% |
Netcashgeneratedfrom/usedinfinancingactivities | -44,505,058.96 | -18,222,496.75 | —— |
Netincreaseincashandcashequivalents | -142,494,895.42 | 361,815,985.16 | —— |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable?Notapplicable
Significantchangesinnetcashgeneratedfrom/usedinoperatingactivitiescomparedtothatoflastyearweremainlyduetotheincreaseofaccountsreceivablewithinthecreditperiod,realizationoflessbank’sacceptancebillsintheReportingPeriod;Significantchangesinnetcashgeneratedfrom/usedininvestingactivitiescomparedtothatoflastyearwereduetotheCompany’sinvestmentinJiangsuChangchaiMachineryCo.,Ltd.andJiangsuHoushengNewEnergyTechnologyCo.,Ltd.intheReportingPeriodandincreaseincashinflowthroughsalesofstocksinBankofJiangsulastyear;Significantchangesinnetcashgeneratedfrom/usedinfinancingactivitiescomparedtothatoflastyearweremainlyduetodecreaseofbankloansintheReportingPeriod.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod
√Applicable?Notapplicable
ThebigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriodmainlyduetoincreaseofaccountsreceivablewithinthecreditperiodwhichdecreasedthenetoperatingcashflow.TheexternalinvestmentsoftheCompanyintheReportingPerioddecreasedthenetinvestingcashflow.IIIAnalysisofNon-CoreBusinesses
□Applicable√Notapplicable
IVAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetCompositionAdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeasessince2019
√Applicable□Notapplicable
Unit:RMB
31December2019 | 31December2018 | Change | Reasonfor |
Amount | As%oftotalassets | Amount | As%oftotalassets | inpercentage(%) | anysignificantchange | |
Monetaryassets | 637,214,006.06 | 18.28% | 800,960,036.69 | 22.61% | -4.33% | |
Accountsreceivable | 419,295,665.51 | 12.03% | 378,859,159.11 | 10.70% | 1.33% | |
Inventories | 473,352,010.58 | 13.58% | 557,953,891.70 | 15.75% | -2.17% | |
Investmentproperty | 48,447,666.83 | 1.39% | 50,656,007.63 | 1.43% | -0.04% | |
Long-termequityinvestments | 0 | 0.00% | 0.00 | 0.00% | 0.00% | |
Fixedassets | 457,582,514.13 | 13.13% | 511,250,371.37 | 14.43% | -1.30% | |
Constructioninprogress | 91,358,156.24 | 2.62% | 89,090,384.71 | 2.52% | 0.10% | |
Short-termborrowings | 22,000,000.00 | 0.63% | 27,000,000.00 | 0.76% | -0.13% | |
Long-termborrowings | 0.00 | 0.00% | 2,000,000.00 | 0.06% | -0.06% |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
Financialassets | ||||||||
1.Held-for-tradingfinancialassets(derivativ | 36,205,975.04 | 78,500,000.00 | 26,753,873.41 | 87,952,101.63 |
efinancialassetsexclusive) | ||||||||
4.Investmentinotherequityinstruments | 470,940,000.00 | 61,946,000.00 | 317,059,775.00 | 532,886,000.00 | ||||
Subtotaloffinancialassets | 507,145,975.04 | 61,946,000.00 | 317,059,775.00 | - | 78,500,000.00 | 26,753,873.41 | - | 620,838,101.63 |
Totalofabove | 507,145,975.04 | 61,946,000.00 | 317,059,775.00 | - | 78,500,000.00 | 26,753,873.41 | - | 620,838,101.63 |
Financialliabilities | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
Item | Endingcarryingvalue | Reasons |
Monetaryassets | 92,629,261.89 | Cashdepositsofbankacceptance’sbillandletterofcredit |
Houseconstructions | 2,936,446.13 | Mortgageofbankloan |
Landuseright | 995,328.00 | Mortgageofbankloan |
Machineryequipment | 48,181,935.62 | Mortgageofbankloan |
Total | 144,742,971.64 |
VInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
InvestmentsmadeinReportingPeriod(RMB) | Investmentsmadeinsameperiodoflastyear(RMB) | +/-% |
60,000,000.00 | 20,315,967.20 | 195.33% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
Investee | Mainbusiness | Investmentmethod | Investmentamount | Shareholdingpercentage | Capitalresources | Partner | Investmentterm | Typeofproducts | Progressasofthebalancesheetdate | Estimatedincome | ProfitsorlossesofinvestmentintheReportingPeriod | Involvinginlawsuitornot | Disclosuredate(ifany) | Disclosureindex(ifany) |
JiangsuHoushengNewEnergyTechnologyCo.,Ltd. | Lithiumbatterybaffle | Capitalincrease | 50,000,000.00 | 8.33% | Self-owned | ChangzhouInvestmentGroupCo.,Ltd.andChangzhouSynergeticInnovationPrivateEquityFund(Lim | Long-term | Lithiumbatterybaffle | Theinputhasbeenmade | 0.00 | 0.00 | No | 9July2019 | 2019-022 |
itedPartnership) | ||||||||||||||
JiangsuChangchaiMachineryCo.,Ltd. | Internalcombustionengine,relatedgeneratorsetsandparts | Establishment | 10,000,000.00 | 100.00% | Self-owned | Naught | Long-term | Internalcombustionengine,relatedgeneratorsetsandparts | Theinputhasbeenmade | 0.00 | -396,390.46 | No | 26February2019 | 2019-004 |
Total | -- | -- | 60,000,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -396,390.46 | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingvalue | Gain/LossonfairvaluechangesinReportingPeriod | Accumulatedfairvaluechangeschargedtoequity | PurchasedinReportingPeriod | SoldinReportingPeriod | Gain/lossinReportingPeriod | Endingcarryingvalue | Accountingtitle | Sourceofinvestmentfunds |
Domestic/ | 600166 | Foton | 41,784,0 | Fairvalue | 262, | 39,0 | 221, | 0.00 | 0.00 | 0.00 | 302, | Investmen | Self-owne |
Foreignstock | Motor | 00.00 | method | 990,000.00 | 15,000.00 | 187,850.00 | 005,000.00 | tinotherequityinstruments | dfund | ||||
Domestic/Foreignstock | 600919 | BankofJiangsu | 18,000,000.00 | Fairvaluemethod | 107,460,000.00 | 22,860,000.00 | 95,472,000.00 | 0.00 | 0.00 | 0.00 | 130,320,000.00 | Investmentinotherequityinstruments | Self-ownedfund |
Domestic/Foreignstock | 600377 | JiangsuExpressway | 90,500.00 | Fairvaluemethod | 490,000.00 | 71,000.00 | 399,925.00 | 0.00 | 0.00 | 0.00 | 561,000.00 | Investmentinotherequityinstruments | Self-ownedfund |
Othersecuritiesinvestmentsheldattheperiod-end | -- | -- | -- | ||||||||||
Total | 59,874,500.00 | -- | 370,940,000.00 | 61,946,000.00 | 317,059,775.00 | 432,886,000.00 | -- | -- |
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√NotapplicableVIIMajorSubsidiaries
√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 | 157,983,698.84 | 85,916,917.70 | 183,792,933.88 | -4,215,018.99 | -3,863,133.37 |
ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 69,629,305.71 | 49,034,871.81 | 40,959,222.43 | 248,139.32 | 160,355.43 |
HoushengInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 48,830,828.93 | 48,029,712.93 | 536,504.84 | 1,758,606.98 | 1,727,307.33 |
HoushengAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplante | 10,000,000.00 | 29,088,562.06 | 446,645.83 | 13,888,579.77 | -926,825.38 | -926,825.38 |
retc. | ||||||||
ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 101,729,651.75 | 90,091,435.72 | 133,936,656.91 | 9,931,517.74 | 8,591,287.04 |
ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 100,000,000.00 | 9,606,403.66 | 9,606,403.66 | 0.00 | -387,276.34 | -393,596.34 |
SubsidiariesobtainedordisposedintheReportingPeriod:
√Applicable□Notapplicable
Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
JiangsuChangchaiMachineryCo.,Ltd. | Newlyestablished | Conformtothelong-termdevelopmentplanoftheCompanyandinterestsofallshareholdersandtheCompany.ItisestimatedthatnosignificantimpactswillbegeneratedontheCompany’sfinancialstatusandoperatingperformance. |
Notes:
(1)ChangchaiCompany,Limitedheldthe15
thMeetingofthe8
thBoardofDirectorson27November2018,onwhichtheProposalonCapitalIncreaseintheWholly-ownedSubsidiarywasreviewedandapproved,andintendedtomakethecapitalincreaseinthewholly-ownedsubsidiaryHoushengInvestmentwithitsself-ownedfundsofRMB10million.Afterthiscapitalincrease,theregisteredcapitalofHoushengInvestmentincreasedtoRMB40millionfromRMB30million.On14February2019,HoushengInvestmentcompletedtheregistrationproceduresandobtainedtheBusinessLicenseissuedbyChangzhouBureauofIndustryandCommerce.Fordetails,pleaserefertotheAnnouncementonCapitalIncreaseintheWholly-ownedSubsidiary(No.:2018-034)andtheAnnouncementonProgressofCapitalIncreaseintheWholly-ownedSubsidiary(No.:2019-002)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninforespectivelyon29November2018and15February2019.
(2)On26December2018,ChangchaiCompany,LimitedformallysignedtheInvestmentAgreementwithChangzhouHigh-techZone.Accordingtotheagreement,theCompanywillinvestRMB0.3billiontoestablishawholly-ownedsubsidiarytoimplementtheprojectofproducinglightengineandcasting.TheCompanyheldtheextraordinaryboardmeetingon25February2019andapprovedtheProposalonEstablishingAWholly-ownedSubsidiarytoImplementtheProjectofProducingLightEngineandCasting.Thesaidwholly-ownedsubsidiarycompletedtheregistrationprocedureson6March2019andobtainedtheBusinessLicenseissuedbytheAdministrativeExaminationandApprovalAuthorityofChangzhouNationalHi-TechIndustrialDevelopmentZone(XinbeiDistrict).Formoredetails,pleaserefertotheAnnouncementontheExternalInvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-004)andtheAnnouncementonProgressoftheExternalInvestmentandEstablishingtheWholly-ownedSubsidiary(No.:2019-005)onSecuritiesTimes,Hong
KongTaKungPaoandCninforespectivelyon26February2019and7March2019.Thepreliminaryworkoftheprojectsuchasfeasibilitydemonstration,planningdesignandfilinghasbeencompleted.TheconstructionhasofficiallystartedattheendofDecember2019andisscheduledtobecompletedandputintooperationin2021.
VIIIStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableIXProspects
1.IndustrialCompetitionPatternandDevelopmentTrendIn2019,agriculturalmachinerymarketremainedinthestageofdeepadjustment,withfasterproductupgradingandmoreintensiveindustrialreshuffle.In2020,China’sagriculturalmachinerymarketwillsustainthelow-speednormalizeddevelopmentofthetransformationstage.Despitethedeclineofthetraditionalcategoriesmarket,opportunitiescanstillbefoundinmarketsegments,withintelligentagriculturalmachineryfavoredbythemarket.Thenationalmacro-economywillbepositiveinthelongrunandagriculturalmachineryindustryissupportedbypolicies.Theagriculturalmachinerymarketisprospectivefromtheperspectiveoflong-termdevelopment.Astotalmarketdemandislarge,itisnotonlyanopportunitybutalsoachallengeforagriculturalmachinerymanufacturers,whoneedtoacceleratetheupgradingofagriculturalmachineryproductsandtechnology.
Inaddition,thehugepressurebroughtbythenewenergyindustrytotraditionalinternal-combustionenginecompanieshasforcedtraditionalenginemanufacturerstoactivelyorpassivelybecomeinvolvedinthedevelopmentofnewenergyautomotiveindustries.
Atpresent,thedevelopmenttrendandmarketsituationoftheindustryaremainlyasfollows:firstly,thedemandforagriculturalmachineryandcommercialvehiclesslowsdown,bringingfurthercompetitionoftheindustry;secondly,thecostofproductemissionupgradeisincreasingandittakesacertaintimeforthemarkettoaccept;thirdly,usersareveryconcernedaboutreliability,vibration,noiseandappearancequalityofdieselengines,andextensionof"ThreeGuaranteesofProducts"increasedtheenterpriseexpenseonservice.Overall,thedieselmarketcompetitionisfierce.Therewillbebettermarketprospectsfordieselengineswithhigh-performanceinenergysavingandenvironmentalprotectionandmeetingtherigiddemandofspecificfields.
2.Companydevelopmentstrategies:
Tobaseonthefarmmachinery,dostrongerinthepower,developthefieldsanddevelopscientifically.
ThecurrentproductsmarketstructureoftheCompanymainlydistributedinthefarmequipmentsuchasthewalkingtractor,bigsmallandmedium-sizedwheeledtractors,caterpillartractors,gardeningtractors,plantprotectiontractors,tractorsforpeanutharvest,andcombineharvesters;agriculturalsmallconstructionmachinery,threeroundsandlow-speedvehicles;lighttrucks,pickupsautomobileindustry;generatorandwaterpump,smallshipauxiliarymachinery.TheCompanywouldtakethemarketandusers’demandsastheorientationtoseizethemainlineoftheproductsandtoimprovethequalityandincreasetheefficiencyaswellastodobetterinthepowerandtoconstantlyenhancethemarketcompetitiveness.
Inthefieldofagriculturalmachinery,theCompanymaintainedaleadingpositioninthehorsepowersegmentandcontinuestoexpandthemarketshare,andactivelyexploredandenteredthemarketinlarge-horse-poweredvehiclesandnon-road-specificpowersupportingareasforengineeringuseandachievedstablebreakthroughsintheniche.Intheterminalarea,theCompanyactivelyexpandedthemarketshareoftransplanterproducts.Inaddition,theCompanyextendeditsproductstructuretothegasolineenginefieldbyacquiringajointventurewith
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.,continuouslyexpandedproductapplication,firmlygraspedproductqualityandactivelydevelopedoverseasanddomesticcustomers.TheCompanywillfurtherinnovatethemanagementmechanism,acceleratetheprogressofproductdevelopmentandvigorouslyexpandthemarkettopromotethesustainedandsteadydevelopmentoftheCompany.Inaddition,theCompanyisusingthecloudplatformtechnologytopromoteinformationbuildinganddevelopahighlyefficientandpracticalinformationplatform.Meanwhile,asaresponsetotheplansofChangzhou,theCompanyisimplementinglightengineandcastingrelocationprojectstointegrateexistingresources,improvequalityandincreaseefficiency,whichisbeneficialtotheCompany’ssustainabledevelopment.
3.OperationPlanfortheYear2020:
TheCompanyisimprovingthequalityofsinglecylindermachinerytocreatefinequalityproductsandenhancingthecompetitivenessofmulti-cylindermachineryproductstoexpandthemarket;speedingupthedevelopmentofendmarket,increasingitssizeandmakingachievementsintheparkbuilding;creatingnewmanagementmodelsforhigherreturnsandutilizingcapitaltodrivedevelopment.In2020,theCompanyisexpectedtoachieveasalesrevenueofRMB2billionwithmorethan80,000unitsofnewproducts.TheaboveoperationplandoesnotrepresenttheprofitforecastofY2020bythelistedcompany,andwhethercanberealizeddependsonvariousfactorsonthechangesofmarketconditionsandtheeffortlevelofthemanagementteam.Thereisalotofuncertainty,andinvestorsshouldpayspecialattentiononit.
4.Possiblerisksandcountermeasures:
(1)Marketrisk:
Withfiercecompetition,over-capacityofsometraditionalproductsandthetotalavailablemarketofthesinglecylinderenginewereinadeclinetendencyaswellasthedemandfromtheindustrywasinsufficient.Andtheprofitabilityoftheenterprisesfacedwithrathergreatpressure.Inthefuture,emissionstandardsofinternalcombustionengineswillbefurtherupdatedandairpollutioncontrolwillbefurtherstringent.Safetyproductionandenvironmentalprotectionwillbenormalized,andtheindustrywillstillbeinaperiodofdeepadjustment.However,long-termimprovementofthenationalmacro-economyremainsunchanged,andtheagriculturalmachinerymarketisstillpromisingwithalargetotalmarketdemand.
Countermeasures:
1.Continuetooptimizeproductandmarketstructuresandstrengthenthemarketfoundationtodomesticandforeignmarkets.
2.Dedicatetoproductdevelopmentandupgradingandproactivelyexpandingnewsupportingareas.
3.Fullyfocusonmarketqualitymattersandimprovemarketreputationwithsoundmeasures.
4.ContinuetodrivetheprogressofkeytechnologicalimprovementprojectsandbuildChangchaiIndustryParkwithhighstandards.
5.Maketangibleeffortstoreinforceleanmanagementtopromotequalityimprovement,costreductionandefficiencyenhancement.
6.Makefulluseofthecapitalmarkettoperformcapitaloperationandassistcorporatedevelopment.
7.Toimprovethequalityofemployeesandprovidehumanresourcessupportforcompanydevelopment.
(2)Industrialrisk:
Therapiddevelopmentofnewenergyvehiclesisboundtoaffectthetraditionalfuelautomobileindustryanditsindustrialchain,specifically;itwilldirectlyaffecttheengineandgearboxmanufacturingindustry,andgenerateagreaterimpactonthetraditionalgasolineanddieselengineindustry.Althoughthematurityofrelatedindustriesinthefieldofnewenergymaytakeyears,morethanadecadeorevenlongerfortransition,thetrendisinevitable.Inresponsetotheupgradingofemissionstandardsandtherapiddevelopmentofnewenergyindustries,
enterprisesinthetraditionalinternal-combustionengineindustryneedtoseeknewdevelopmentopportunitiestoshiftindustrialrisks.Countermeasures:
Thefirstmeasureistopreparelayoutinnewenergyindustriesinadvancetoseizetheopportunityforindustrydevelopment.ThesecondoneistoincreasetheR&Dintensityofnewproductsthatmeetsthestandardsofnon-roadnationalGradeIVandothernewproducts,increaseproductemissionstandards,andtakeadvanceddieselengineproductsasthebasisoftheCompanytoexplorethedevelopmentdirectionofnewindustriesandmeettheindustrialupgradingandtransformation.
(3)Policyrisk:
Themacro-economicenvironmentiscomplexandchangeable,economicgrowthisslowingdownandthepolicyonthedieselengineemissionsisbecomingstricterandstricter,whichincreasedtheoperatingdifficultiesandthepressure.Assuch,themarketdemandsforsomeproductsoftheCompanywillbeaffectedtosomeextent.
Countermeasures:
TheCompanywillpaycloseattentiontothegovernment’seconomicmacro-controlpoliciesandmarketdevelopments.Topromotetheworksuchas“promotetheproductsupgradeandqualityenhancing”,toembracetheupgradingoftheengineemissionstandards,toacceleratetheforgingofthenew“StandardV”platform,andtoexecutethenecessaryproductsresourcesreservesinadvance.
(4)Talentrisk:
AstheCompanykeeps,inrecentyears,improvingoperationalefficiencyandtechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend,thedemandforprofessionalandseniormanagementpersonnelisgreatlyincreased.Countermeasures:
Firstly,introduceallkindsofhigh-rankingtalentsthroughvarietiesofchannelsandstrengthenpersonneltraining.
Secondly,theCompanyalsomakesoptimizationintheperformanceappraisalsystemandincentivepaysystemandstrengthensthetrainingofemployeestoreducethelossofprofessionalsandstrengthenspersonnelfortheconstructionoftalentedpersonnelteams.
XCommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
1.DuringtheReportingPeriod
√Applicable□Notapplicable
Date | Wayofcommunication | Typeofcommunicationparty | Indextomaininformationcommunicated |
31December2019 | Other | Individual | Inquiredthecapitaloperationofthecapitalmarket |
27December2019 | Other | Individual | InquiredtheHoushenglithiumbatterybaffleproject |
24December2019 | Other | Individual | Inquiredthereformandrestructuringtowardstate-ownedenterprises |
24December2019 | Other | Individual | InquiredthegeneralelectionoftheBoard |
24December2019 | Other | Individual | InquiredthegeneralelectionoftheBoard |
16December2019 | Other | Individual | InquiredthevisitingactivityofHoushenglithiumbatterybaffleproject |
16December2019 | Other | Individual | InquiredthegeneralelectionoftheBoard |
5December2019 | Other | Individual | InquiredthestartingtimeofproductionofHoushenglithiumbatterybaffle |
26November2019 | Other | Individual | Inquiredthebusinessname |
25November2019 | Other | Individual | Inquiredthebusinessname |
25November2019 | Other | Individual | Inquiredthebusinessname |
25November2019 | Other | Individual | Inquiredthecontinuoussupervisionopinionsfromsecuritiescompanies |
20November2019 | Other | Individual | InquiredthestockpriceoftheCompany |
7November2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
7November2019 | Other | Individual | Inquiredtheconstructionprogressoftheindustrialpark |
6November2019 | Other | Individual | InquiredthestockpriceoftheCompany |
23October2019 | Other | Individual | InquiredtherepurchaseofBshares |
17September2019 | Other | Individual | InquiredtheconsultationoftheCompany’sfinancialaffairs |
11September2019 | Other | Individual | Inquiredshareholders |
5September2019 | Other | Individual | Inquiredindustrypolicies |
5September2019 | Other | Individual | Inquiredtheconditionoftheagriculturalmachineryindustry |
5September2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
5September2019 | Other | Individual | InquiredthedevelopmentstrategyoftheCompany |
30August2019 | Other | Individual | Inquiredtheprogressofnewenergyproject |
6August2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
29July2019 | Other | Individual | Inquiredthelandoftheindustrialpark |
28July2019 | Other | Individual | Inquiredtheremovalproject |
28July2019 | Other | Individual | Inquiredtheremovalproject |
10July2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
4July2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
1July2019 | Other | Individual | InquiredtheconsultationoftheCompany’sbusiness |
31May2019 | Other | Individual | Inquiredtheinvestmentinthenewenergyindustry |
31May2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
21May2019 | Other | Individual | InquiredtheownershipofpremisesoftheCompany’safter-saleservicesites |
21May2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
21May2019 | Other | Individual | InquiredthemainbusinessoftheCompany |
9May2019 | Other | Individual | Inquiredthereformofstate-ownedenterprisestowardmixedsystemandinnovation |
8May2019 | Other | Individual | Inquiredtheproposalsongeneralmeetings |
25April2019 | Other | Individual | InquiredthebusinessdevelopmentoftheCompany |
25April2019 | Other | Individual | Inquiredtheindustrialinvestmentfund |
17April2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
12April2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
11April2019 | Other | Individual | InquiredthereformandupgradingoftheCompany |
11April2019 | Other | Individual | InquiredtheCompany’slayoutinthenewenergyindustry |
10April2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
10April2019 | Other | Individual | InquiredtheCompany’slayoutinthenewenergyindustry |
10April2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
2April2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
31March2019 | Other | Individual | InquiredtheengagementofdirectorsoftheCompany |
31March2019 | Other | Individual | Inquiredtheinvestmentsmadebytheindustrialinvestmentfund |
28March2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
28March2019 | Other | Individual | InquiredtheprogressofM&AandrestructuringoftheCompany |
28March2019 | Other | Individual | InquiredthemainbusinessoftheCompany |
27March2019 | Other | Individual | Inquiredtheprogressoflithiumbatterybaffleandprogressofinvestedprojectsbysubsidiaries |
21March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
21March2019 | Other | Individual | InquiredthebrandvalueoftheCompany |
19March2019 | Other | Individual | Inquiredtheprogressofinvestedprojectsbysubsidiaries |
18March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
18March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
14March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
10March2019 | Other | Individual | InquiredthereformanddevelopmentoftheCompany |
10March2019 | Other | Individual | InquiredthestockpriceoftheCompany |
8March2019 | Other | Individual | InquiredthestockpriceoftheCompany |
5March2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
25February2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
25February2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
25February2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
2February2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
1February2019 | Other | Individual | Inquiredthefestivalgreetingstoinvestors |
1February2019 | Other | Individual | InquiredtheinvestmentintentionprogressoftheCompany |
31January2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
25January2019 | Other | Individual | InquiredtheindustriallayoutoftheCompany |
25January2019 | Other | Individual | InquiredtheimpactsofequitytransferontheCompany |
25January2019 | Other | Individual | InquiredthesalesoffinancialassetsbytheCompany |
24January2019 | Other | Individual | Inquiredtheindustrycondition |
24January2019 | Other | Individual | InquiredthedevelopmentplanningoftheCompany |
24January2019 | Other | Individual | InquiredtheproductsoftheCompany |
23January2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
23January2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
13January2019 | Other | Individual | Inquiredthegovernmentsubsidies |
11January2019 | Other | Individual | InquiredtheperformanceforecastoftheCompany |
Timesofcommunications | 81 | ||
Numberofinstitutionscommunicatedwith | 0 | ||
Numberofindividualscommunicatedwith | 81 | ||
Numberofothercommunicationparties | 0 | ||
Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | None |
PartVSignificantEvents
IProfitDistributionstoOrdinaryShareholders(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,forordinaryshareholderswasformulated,executedorrevisedintheReportingPeriod:
√Applicable□Notapplicable
InArticlesofAssociation,whichhadconfirmedthespecificprofitsdistributionandclearedouttheconditions,standardsandproportionofthecashbonus,stipulatedthedecision-makingprogressoftheformulationandalternationoftheprofitsdistributionpoliciesandthechaptersaswellastheregulationsfullyensuretheopportunitiesforthemediumandsmallshareholderstoexertthefunctionsandtoprovideadvicesaswellasappeals.Thecashbonusofrecent3yearsoftheCompanymetwiththeregulationsoftheArticlesofAssociationandduringthedecision-makingprocessoftheprofitsdistributionproposal,theIndependentDirectorsstatedtheindependentadvicesandfullyrespectedtheadvicesfromthemediumandsmallshareholders.TheprofitsdistributionpreplanandtheturningcapitalreserveintosharecapitalpreplanoftheCompanywerebothmetwiththerelevantregulationsoftheArticlesofAssociationandsoon.
Specialstatementaboutthecashdividendpolicy | |
IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
Specificandcleardividendstandardandratio | Yes |
Completedecision-makingprocedureandmechanism | Yes |
Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | N/A |
Theprofitdistributionstoordinaryshareholders,eitherintheformofcashorstock,inthepastthreeyears(includingtheReportingPeriod)aresummarizedasfollows:
Year | Profitsdistributionproposal | Turningcapitalreserveintosharecapitalproposal | Execution |
2019 | No | No | StillneededtosubmittotheAnnualGeneralMeeting |
2018 | DistributedRMB0.25ofevery10shares(taxesincluding) | No | Finishedtheexecution |
2017 | DistributedRMB0.30ofevery10shares(taxesincluding) | No | Finishedtheexecution |
Cashdividendforordinaryshareholdersinthepastthreeyears(includingtheReportingPeriod):
Unit:RMB
Year | Cashdividends(taxinclusive)(A) | Netprofitattributabletoordinaryshareholdersofthelistedcompanyinconsolidatedstatementsfortheyear(B) | Aas%ofB(%) | Cashdividendsinotherforms(C) | Cas%ofB(%) | Totalcashdividends(includingthoseinotherforms)(D) | Das%ofB(%) |
2019 | 0.00 | 24,934,586.11 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
2018 | 14,034,358.15 | 62,021,374.04 | 22.63% | 0.00 | 0.00% | 14,034,358.15 | 22.63% |
2017 | 16,841,229.78 | 46,431,302.73 | 36.27% | 0.00 | 0.00% | 16,841,229.78 | 36.27% |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive.
√Applicable□Notapplicable
ReasonwhytheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive | UseanduseplanforretainedearningsoftheCompany |
TheimplementationoftheremovalprojectoflightengineandcastingbytheCompanyneedssubsequentcapitalinputwithlargeamount.BasedonthecomprehensiveconsiderationoftheCompany’soperationanddevelopment,theCompanyintendstofailtoconductcashdistributionin2019.Inaddition,theCompanywillactivelypromotethecashdistributionwayunderthepremiseofmakingprofitsandcashmeetingthesustainableoperationanddevelopmentoftheCompanysoastoprotectandincreasethelong-terminterestsofinvestors. | EnhancetheCompany’scapitalstrengthandprepareforthecorporatedevelopment |
IIFinalDividendPlanfortheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIFulfillmentofCommitments
1.CommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end
√Applicable□Notapplicable
Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | bonus | RewardsPlanforShareholdersinNextThreeYears(2017-2019)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyears | 11May2017 | Year2017-2019 | Ongoing |
shouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | |||
Fulfilledontime | Yes | ||
Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A |
2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√NotapplicableIVOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandMethods
√Applicable□Notapplicable
Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
TheNoticeonRevisingandIssuingtheFormatsof2019FinancialStatementsforGeneralEnterprisesissuedbytheMinistryofFinanceon30April2019requiresthecompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsbutnotthenewstandardsgoverningrevenueandleaseorcompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsandrevenuebutnotthenewstandardsgoverningleasetoadjustitemsoffinancialstatementsinlinewithrequirementsoftheAppendix1andAppendix2oftheNotice. | On27August2019,theCompanyheldthe20thMeetingofthe8thBoardofDirectorsandthe16thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesofSomeAccountingPolicies | Referto(1)ofothernotesfordetails |
TheCompanystartstoimplementtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,whichrevisedandissuedbytheMinistryofFinanceinMarch2017andhereinaftercollectivelyreferredtoasnewstandardsgoverningfinancialinstrumentssince1January2019whichstipulatethatthecompanyshallclassifyandmeasurefinancialinstrumentsinaccordancewithregulationsontheexecutiondate,whenthedataofcomparativefinancialstatementsofprioryearsdonotcomplywiththenewstandards,noadjustmentismadebytheCompany. | On9April2019,theCompanyheldthe17thMeetingofthe8thBoardofDirectorsand13thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesinSomeAccountingPolicies | Referto(2)ofothernotesfordetails |
Othernotes:
(1)InfluenceofChangesinFormatsofFinancialstatementsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
31December2018 | 1January2019 | ||
Notesreceivableandaccountsreceivable | 874,229,941.58 | Notesreceivable | 495,370,782.47 |
Accountsreceivable | 378,859,159.11 | ||
Notespayableandaccountspayable | 1,030,130,275.77 | Notespayable | 438,375,400.00 |
Accountspayable | 591,754,875.77 |
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
31December2018 | 1January2019 | ||
Notesreceivableandaccountsreceivable | 790,877,079.72 | Notesreceivable | 490,519,795.91 |
Accountsreceivable | 300,357,283.81 | ||
Notespayableandaccountspayable | 987,550,797.44 | Notespayable | 425,995,400.00 |
Accountspayable | 561,555,397.44 |
(2)InfluenceofExecutionofNewStandardsGoverningFinancialInstrumentsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
Item | 31December2018 | Affectedamount | 1January2019 | |
Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
Othercurrentassets | 34,357,608.97 | -8,253,873.41 | 26,103,735.56 | |
Held-for-tradingfinancialassets | 8,253,873.41 | 8,253,873.41 | ||
Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | ||
Investmentinother | 472,150,000.00 | 1,210,000.00 | 470,940,000.00 |
equityinstruments | ||||
Othernon-currentfinancialassets | 27,911,369.49 | 27,911,369.49 | ||
Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 |
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
Item | 31December2018 | Affectedamount | 1January2019 | |
Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | ||
Investmentinotherequityinstruments | 471,350,000.00 | 410,000.00 | 470,940,000.00 | |
Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 |
VIIRetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
√Applicable□NotapplicableChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)reviewedandapprovedtheProposalonEstablishingtheWholly-ownedSubsidiarytoImplementtheProjectofProducingLightEnginesandCastingontheextraordinaryboardmeetingheldon25February2019.TheBoardagreedtheCompanytoinvestRMB0.3billionforestablishingthewholly-ownedsubsidiarytoimplementtheprojectofproducinglightenginesandcasting.Fordetails,pleaserefertotheAnnouncementontheExternalInvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-004)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon26February2019.On6March2019,thewholly-ownedsubsidiarycompletedtheregistrationproceduresandobtainedtheBusinessLicenseissuedbytheAdministrativeExaminationandApprovalAuthorityofChangzhouStateHi-TechIndustryDevelopmentZone(XinbeiDistrict).Formoredetails,pleaserefertotheAnnouncementontheProgressofExternalinvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-005)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon7March2019.
Therefore,thesubsidiaryJiangsuChangchaiMachineryCo.,Ltd.hasbeennewlyaddedtotheconsolidatedfinancialstatementsoftheReportingPeriod.
IXEngagementandDisengagementofIndependentAuditor
Currentindependentauditor:
Nameofthedomesticindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 60 |
HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 18 |
Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | DaiWeizhong,XuWenxiang |
HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | DaiWeizhongfouryears,XuWenxiangtwoyears |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
□Applicable√Notapplicable
XPossibilityofListingSuspensionorTerminationafterDisclosureofthisReport
□Applicable√Notapplicable
XIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorLegalMatters
√Applicable□Notapplicable
Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
AsforthelawsuitagainstShandongHongliGroupCo.,Ltd.,thedefendant | 1,436 | None | Thejudgmentwasmade | Notapplicable | Compulsoryexecutionandunderthe |
accumulativelyowedtheCompany’spaymentforgoodsofRMB14.36million.TheCompanyfiledanappealtoChangzhouIntermediatePeople’sCourtin2001andappliedtothecourtforcompulsoryexecutioninApril2002.Atpresent,thesaidcompanyisgoingintobankruptcyproceedings. | atthesecondinstance | bankruptcyliquidation |
XIIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIVCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√Notapplicable
XVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√Notapplicable
XVIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.。
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.OtherMajorRelated-PartyTransactions
√Applicable□Notapplicable
TheCompanyanditscontrollingshareholderChangzhouInvestmentGroupCo.,Ltd.signedtheAgreementofTransferringtheCapitalContributionRightinJiangsuHoushengNewEnergyTechnologyCo.,Ltd.withChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership),eachtransfereeacceptedthecapitalcontributionrightofRMB50millioninJiangsuHoushengNewEnergyTechnologyCo.,Ltd.Indextothecurrentannouncementsaboutthesaidrelated-partytransactionsdisclosed:
Titleofannouncement | Disclosuredate | Disclosurewebsite |
AnnouncementonJointAcceptingtheTransferoftheCapitalContributionRightinJiangsuHoushengNewEnergyTechnologyCo.,Ltd.HeldbyChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)withControllingShareholders | 9July2019 | Cninfo |
XVIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Majorguarantees
√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
GuaranteesbetweentheCompanyastheparentanditssubsidiaries | ||||||||
Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25December2018 | 2,000 | 25December2018 | 2,000 | Jointliability | 1year | No | No |
TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 2,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 2,000 | |||||
TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,000 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 2,000 | |||||
Guaranteesprovidedbetweensubsidiaries | ||||||||
Obligor | Disclosuredateoftheguaranteelineannoun | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
cement | ||||
Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||
TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 2,000 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 2,000 | |
TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,000 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 2,000 | |
Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.95% | |||
Ofwhich: | ||||
Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||
Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 2,000 | |||
Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||
Totalofthethreeamountsabove(D+E+F) | 2,000 | |||
Explanationonpossibilitytobearjointliabilityduetoundueguarantees(ifany) | N/A | |||
Explanationontheexternalguaranteesinviolationofstipulatedprocedures(ifany) | N/A |
(2)IrregularitiesinProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedtoOtherEntitiesforManagement
(1)CashEntrustedforWealthManagement
√Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
Specifictype | Capitalresources | Amountincurred | UndueBalance | Overdueamount |
Brokerfinancialproducts | Self-ownedfunds | 2,850.00 | 1,000.00 | 0.00 |
Particularsofcashentrustedforwealthmanagementwithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable√Notapplicable
(2)EntrustedLoans
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIIICorporateSocialResponsibility(CSR)
1.MeasuresTakentoFulfillCSRCommitmentBytaking"ProvideGreenPowerforABetterLife"asitscorporatemissionand"CustomerFirst,StaffFirst,RewardingShareholdersandBenefitingtheSociety"asitscorevalue,theCompanypaysattentiontotheinterestsofallparties,earnestlyfulfilltheresponsibilitiesandobligationsduetoshareholders,employees,consumers,suppliersandotherparties,activelyshoulderthesocialresponsibilitiesandachievecommondevelopmentwhilemaintainingscientificdevelopmentandsteadyoperation.Afteryearsofpracticeandcontinuousrefinementandsummary,thecompanyhasformedanenterpriseculturesystemof"LoveCountryaswellasLoveFactory,WorkDowntoEarthaswellasGoodatInnovation,StrictinDiscipline,andNobleinEthics",ithasbecomeaqualifiedenterprisecitizen,andstrivestoachievethecoordinationandunitybetweenenterprisedevelopmentandecologicalandenvironmentalprotectionaswellassocialharmony.
I.Adheretostandardoperationandguarantyofinterestsofshareholders.Instrictaccordancewithlaws,regulations,rulesandarticlesofassociation,theCompanyhasestablishedaperfectcorporategovernancestructureandasoundinternalcontrolsystem,anditcontinuouslystrengthenstheriskmanagementandinternalsupervision,andimprovesthescientificcharacterofdecision.Duringthereportingperiod,theCompanyhasstandardizedthedisclosureofinformation,ensuredthesincerity,accuracyandcompletenessofcontent,safeguardedtheshareholders'righttoknow,andprovidedsufficientinvestmentbasistoinvestors.Throughdoingagoodjobinthecarefulorganizationandgoodmanagementofinvestors,smoothandeffectivecommunicationwithshareholdersaswellastheaccurate,complete,fairtreatmentofallshareholders,allshareholdersenjoyfairnessandguaranteedlegitimaterightsandinterestsentitled.
II.Stafffirst,andprotecttherightsandinterestsofworkers.TheCompanysignsthelaborcontractsinaccordancewiththerequirementsoftheLaborLaw,LaborContractLawandotherlawsandregulations,andit
strictlyimplementsthetermsasrequiredincontract,paysthesocialsecurityfortheemployeesandcarriesouttheemployeewelfarephysicalexaminationasrequiredbyregulations,andguaranteestheemployee'sannualleave,marriageleave,maternityleaveandotherleaverightsandinterests;italsotakescareofemployees'familyaffairs,balancestheirworkandlife,andprovidesspiritualcomfortandpracticalhelpatcriticalmoments.TheCompanyattachesgreatimportancetotheprotectionofemployees'rightsandinterests,paysattentiontotalenttraining,devotesitselftothecommondevelopmentofenterprisesandemployees,andstrivestobuildastableandharmoniouslabor-capitalrelationship.
III.Prudenceandintegrity,andsafeguardtherightsandinterestsofconsumers,customersandsuppliers.Byadheringtotheprincipleofintegritymanagement,benefit-sharingandmutualbenefit,andupholdingtheenterpriseethicsof"AdvocatingScience,IntegrityandTrustworthiness",theCompanyhasorganizedtheproductionandoperationactivitiesandproductsalesworks,establishedlong-termstrategicpartnershipwithsuppliersandcustomers,takentheimprovementofproductqualityandconsumersatisfactionasanimportantworkoftheCompany,andrealizeditsownvalueintheprocessofcreatingvaluesforconsumers.Thecompanyattachesimportancetothecommunicationwiththesuppliers,andgivesprioritytotheselectionofadvancedtechnologyandenvironmentalprotectionproductstohelptheCompany'senergyconservationandenvironmentprotectionduringtheproductionprocess.Intheprocessofcooperatingwithsuppliers,itcarriesoutexperienceexchange,assistssupplierstoimproveproductquality,andhelpssupplierstogrow.Itimprovesservicesaccordingtomarketdemandandresponseandguaranteestherightsandinterestsofcustomers,andcontinuouslyprovidescompleteserviceforthemarket.
IV.Steadyoperationandsustainabledevelopment.Basedonthenationalpoliciesandactualsituation,theCompanytakestheopportunityofemissionstandardupdatingofnon-roadmachineryandruralconstructiontopromotetheresearchanddevelopmentofagriculturalmachineryproductsandspeedsupproductupdating,andpromotesthesupportingapplicationofproducts.TheCompanyhascontinuouslyimplementedthemeasuresofenergyconservationandemissionreduction,improvedtheefficiencyofenergyutilization,andachievedremarkableresultsincostandexpenditurereduction,andithaspromotedtheCompanytocontinuouslyimproveitsgovernancesystemandenhanceitsmanagementlevel.Underthesupportofrelevantgovernmentdepartments,theCompanyproceedstheconstructionofindustrialparksinaccordancewithurbanplanninginanorderlymannertoformindustrialagglomerationfortheimplementofurbanplanningandagreenandharmoniouslivingenvironment.
V.Supportsocialwelfareactivitiesandgivebacktothesociety.Inrecentyears,theCompanyhastakenanactivepartinthelocalpublicwelfareactionweekanddonatedmoneytohelpneedyresidentseveryyear.Overthepastyears,theCompanyhasorganicallycombinedeconomicdevelopmentwithsocialcontribution,activelycarriedoutvariouspublicwelfareactivitiessuchasassisting"Agriculture,RuralAreas,andRuralResidents",caringstudents,voluntaryblooddonation,voluntaryservice,energyconservationandenvironmentalprotection,earnestlyfulfilledenterprisesocialresponsibility,andmadeduecontributionstotheharmoniousandstabledevelopmentofsocietywithitspracticalactions.
2.MeasuresTakenforTargetedPovertyAlleviationTheCompanydidn’ttakeanytargetedmeasurestohelppeopleliftthemselvesoutofpovertyduringtheReportingPeriod,nosubsequentplantemporarilytoo.
3.IssuesRelatedtoEnvironmentalProtectionIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities.No
TheCompanyanditssubsidiariesarenotthemajorpolluteridentifiedbytheenvironmentalprotectionauthoritiesofChinaduringtheReportingPeriod.TheCompanyattachesgreatimportancetotheworkofenvironmentalprotection,andrequiresthesubsidiariestobuildcorrespondingenvironmentalprotectionfacilitiesaccordingtotheactualsituationofproductionandoperation,strictlycontrollingthepollutants,like“wastegas,wastewater,andwasteresidue”generatedfromtheproductionprocess.
XIXOtherSignificantEvents
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XXSignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformationI.ShareChanges
1.ShareChanges
Unit:share
Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
I.Restrictedshares | 0 | 0.00% | 0 | 0.00% | |||||
1.Sharesheldbythestate | 0 | 0.00% | 0 | 0.00% | |||||
2.Sharesheldbystate-ownLegal-person | 0 | 0.00% | 0 | 0.00% | |||||
3.Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0.00% | |||||
Amongwhich:sharesheldbydomesticlegalperson | 0 | 0.00% | 0 | 0.00% | |||||
Sharesheldbydomesticnaturalperson | 0 | 0.00% | 0 | 0.00% | |||||
4.Overseashareholdings | 0 | 0.00% | 0 | 0.00% | |||||
Amongwhich:sharesheldbyoversealegalperson | 0 | 0.00% | 0 | 0.00% |
Sharesheldbyoverseanaturalperson | 0 | 0.00% | 0 | 0.00% | |
II.Unrestrictedshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% | |
1.RMBordinaryshares | 411,374,326 | 73.28% | 411,374,326 | 73.28% | |
2.Domesticallylistedforeignshares | 150,000,000 | 26.72% | 150,000,000 | 26.72% | |
3.Overseaslistedforeignshares | 0 | 0.00% | 0 | 0.00% | |
4.Other | 0 | 0.00% | 0 | 0.00% | |
III.Totalshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% |
Reasonsforsharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchases:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□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√Notapplicable
IIIShareholdersandActualController
1.ShareholdersandTheirShareholdingsatthePeriod-End
Unit:share
Numberofordinaryshareholders | 50,382 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 48,072 | Numberofpreferredshareholderswithresumedvotingrights | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport | 0 | |||||||
5%orgreatershareholdersortop10shareholders | ||||||||||||||
Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
Status | Shares | |||||||||||||
ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 30.43% | 170,845,236 | 170,845,236 | ||||||||||
KGIAsiaLimited | Foreignlegalperson | 0.57% | 3,189,845 | 3,189,845 | ||||||||||
LeiYanqin | Domesticnaturalperson | 0.39% | 2,181,447 | 2,181,447 | ||||||||||
GaoFenhuai | Domesticnaturalperson | 0.35% | 1,950,000 | 1,950,000 | ||||||||||
HuWenyong | Domesticnaturalperson | 0.28% | 1,561,866 | 1,561,866 | ||||||||||
HuangGuoliang | Domesticnaturalperson | 0.27% | 1,528,891 | 1,528,891 | ||||||||||
LiSuinan | Domesticnaturalperson | 0.27% | 1,507,800 | 1,507,800 | ||||||||||
ZhouYong | Domestic | 0.27% | 1,500,000 | 1,500,000 |
naturalperson | |||||||||
XueHong | Domesticnaturalperson | 0.23% | 1,310,900 | 1,310,900 | |||||
TaoXiaofang | Domesticnaturalperson | 0.22% | 1,230,000 | 1,230,000 | |||||
Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue | N/A | ||||||||
Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||||||||
Top10unrestrictedshareholders | |||||||||
Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |||||||
Type | Shares | ||||||||
ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMBordinaryshares | 170,845,236 | ||||||
KGIAsiaLimited | 3,189,845 | Domesticallylistedforeignshares | 3,189,845 | ||||||
LeiYanqin | 2,181,447 | RMBordinaryshares | 2,181,447 | ||||||
GaoFenhuai | 1,950,000 | RMBordinaryshares | 1,950,000 | ||||||
HuWenyong | 1,561,866 | Domesticallylistedforeignshares | 1,561,866 | ||||||
HuangGuoliang | 1,528,891 | Domesticallylistedforeignshares | 1,528,891 | ||||||
LiSuinan | 1,507,800 | Domesticallylistedforeignshares | 1,507,800 | ||||||
ZhouYong | 1,500,000 | RMBordinaryshares | 1,500,000 | ||||||
XueHong | 1,310,900 | Domesticallylistedforeignshares | 1,310,900 | ||||||
TaoXiaofang | 1,230,000 | RMBordinaryshares | 1,230,000 | ||||||
Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestricted | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. |
publicshareholdersandtop10shareholders | |
Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading | TheshareholdersLeiYanqinandGaoFenhuairespectivelyheld2,017,347sharesand1,950,000sharesoftheCompanythroughtheircreditaccounts. |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√No
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyalocalstate-ownedlegalpersonTypeofthecontrollingshareholder:legalperson
Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
ChangzhouInvestmentGroupCo.,Ltd | ChenLimin | 20June2002 | 91320400467283980X | Propertyinvestmentandmanagement |
Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | None |
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Localinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:legalperson
Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
State-ownedAssetsSupervisionandAdministrationCommissionof | LiuYuedong | 01411025-1 | Notapplicable |
ChangzhouMunicipalPeople’sGovernment | |
OtherlistedcompaniesathomeorabroadcontrolledbytheactualcontrollerintheReportingPeriod | None |
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
AccordingtothedocumentofChangzhouMunicipalPeople'sGovernment(CZF[2006]No.62]),thecontrollingshareholderChangzhouInvestmentGroupCo.,Ltd.istheenterprisetoperformtheinvestorrolefortheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmentasauthorizedbyChangzhouMunicipalPeople’sGovernment.Thus,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmentistheactualcontrolleroftheCompany.IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
5.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
□Applicable√Notapplicable
PartVIIPreferredShares
□Applicable√NotapplicableNopreferredsharesintheReportingPeriod.
PartVIIIConvertibleCorporateBonds
□Applicable√NotapplicableNoconvertiblecorporatebondsintheReportingPeriod.
PartIXDirectors,Supervisors,SeniorManagementandStaffIChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Endingshareholding(share) |
ShiXinkun | ChairmanoftheBoard | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
HeJianguang | ViceChairmanoftheBoard | Former | Male | 56 | 18October2016 | 29January2019 | 0 |
ZhangXin | Director,GeneralManager | Incumbent | Male | 54 | 18October2016 | Uptonow | 0 |
ShiJianchun | Director,Vice-generalManager | Incumbent | Male | 58 | 18October2016 | Uptonow | 0 |
LinTian | Director | Incumbent | Male | 57 | 17December2018 | Uptonow | 0 |
ZhangQiong | Director | Incumbent | Female | 62 | 18October2016 | Uptonow | 0 |
LiMinghui | Independentdirector | Incumbent | Male | 46 | 18October2016 | Uptonow | 0 |
JiaBin | Independentdirector | Incumbent | Male | 42 | 18October2016 | Uptonow | 0 |
FengGenfu | Independentdirector | Incumbent | Male | 63 | 18October2016 | Uptonow | 0 |
YinLihou | Vice-generalManager | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
XuYi | Vice-generalManager | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
LiuXiaoyun | Vice-generalManager | Incumbent | Male | 58 | 18October2016 | Uptonow | 0 |
WeiJinxiang | Vice-generalManager | Incumbent | Male | 57 | 18October2016 | Uptonow | 0 |
NiMingliang | ChairmanoftheSupervisoryCommittee | Incumbent | Male | 53 | 18October2016 | Uptonow | 0 |
ZhuMin | Supervisor | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
XieGuozhong | Supervisor | Incumbent | Male | 51 | 18October2016 | Uptonow | 0 |
LuZhonggui | Supervisor | Incumbent | Male | 53 | 18October2016 | Uptonow | 0 |
LiuYi | Supervisor | Incumbent | Male | 51 | 18October2016 | Uptonow | 0 |
HeJianjiang | SecretaryoftheBoard | Incumbent | Male | 41 | 18October2016 | Uptonow | 0 |
Total | -- | -- | -- | -- | -- | -- | 0 |
IIChangeofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
IIIBiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
ShiXinkun:Nowheactsasvice-presidentofChangzhouInvestmentGroupCo.,Ltd.,theChairmanoftheBoardandPartySecretaryintheCompanyandthedirectorinJiangsuHoushengNewEnergyTechnologyCo.,Ltd.ZhangXin:HesuccessivelytookthepostsofSalesManager,GeneralManagerAssistant,andvice-generalmanagerinourcompany.Now,heactsasDirector,GeneralManager,deputyPartySecretaryoftheCompanyandexecutivedirectorofJiangsuChangchaiMachineryCo.,Ltd.ShiJianchun:HesuccessivelyactedasPartySecretary,Director,Vice-generalManagerandSecretaryoftheBoardoftheCompany.NowheistheDirector,Vice-generalManagerandChairmanoftheBoardofHoushengInvestmentCo.,Ltd.
Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
HeJianguang | ViceChairmanoftheBoard | Left | 29January2019 | Jobtransfer |
LinTian:HesuccessivelyworkedasdeputydirectorofenterprisedevelopmentDept.,GMofinvestmentmanagementDept.IIandI,assistantpresidentinChangzhouInvestmentGroupCo.,Ltd.Nowheisthevicepresident,directorofChangzhouInvestmentGroupCo.,Ltd.,andthedirectoroftheCompany.ZhangQiong:ShesuccessivelyactedasLecturerandAssociateProfessorinDepartmentofLawofAnhuiUniversity,DeputyDirectorofIntellectualPropertyOfficeandDirectorofLegalAffairsOfficeinShenzhenHuaweiTechnologiesCo.,Ltd,SeniorManager,AssistantSecretaryGeneralofShenzhenInnovationInvestmentGroupLtd,Director,GeneralManager,andconsultantofAnhuiHongtuVentureCapitalCo.,Ltd.Now,sheworksasthesupervisorofSynergeticFundsManagementLimited,andthedirectoroftheCompany.FengGenfu:heheldthepostofDeanofInstituteofEconomicsandFinanceinXi’anJiaotongUniversity.Now,heisProfessorandDoctoralAdvisorofInstituteofEconomicsandFinanceinXi’anJiaotongUniversity,andindependentDirectorofDatangInternationalPowerGenerationCo.,Ltd.,ChinaSecuritiesCo.,Ltd,HuarenPharmaceuticalCo.,Ltd.,Xi’AnShaanguPowerCo.,Ltd.andtheCompany.LiMinghui:HeactedasLecturerandAssociateProfessorofSchoolofAccountinginXiamenUniversity,AssociateProfessorandProfessorofSchoolofAccountinginNanjingUniversityBusinessSchool.NowheistheDoctoralSupervisorofSchoolofAccountinginNanjingUniversityBusinessSchool,independentdirectorofBaoshengScience&TechnologyInnovationCo.,Ltd,NanjingSecuritiesCo.,Ltd,andGCLPower(Group)Co.,Ltd.,andindependentdirectoroftheCompany.JiaBin:HesuccessivelyactedastheDeputyDirectorofNo.1ResearchofficeinTianjinResearchInstituteofInternalCombustionEngine,nowheactsastheDirectorofNo.1ResearchofficeinTianjinResearchInstituteofInternalCombustionEngineandSecretary-generalofCICEIASmallGasolineEngineBranch,andindependentdirectoroftheCompany.YinLihou:HeworkedasMinisterofHumanResourcesDepartmentandGeneralManagerAssistant.NowheactsasDeputyGeneralManageroftheCompany,andtheChairmanoftheBoardofChangchaiRobin.XuYi:HesuccessivelytookthepostsofDirectorofTechnicalCenterandGeneralManagerAssistant.NowheisVice-generalManageroftheCompany.LiuXiaoyun:HesuccessivelyactedasMulti-cylinderEngineFactoryDirector,MinisterofPurchaseDepartment,andGeneralManagerAssistantintheCompany.NowheactsasDeputyGeneralManageroftheCompany.WeiJinxiang:HesuccessivelyheldthepostsofDepartmentDirectorofQualityAssuranceDepartment,GeneralManagerAssistantoftheCompany.NowheactsasDeputyGeneralManageroftheCompany,andthechairmanofChangchaiWanzhou,ChangchaiBenniu,andHoushengAgriculturalEquipment.NiMingliang:NowheactsasDeputyPartySecretary,SecretaryofCommission,ChairmanofLaborUnionandChairmanoftheSupervisory.ZhuMin:NowheactsasthePrincipalStaffMemberofOrganizationandPersonnelDivisionofChanzhouAuditBureauandsupervisoroftheCompany.XieGuozhong:NowheactsasGeneralManagerAssistantoftheCompany,GeneralManagerandSecretaryofPartyGeneralBranchoftheSalesCompany,andSupervisoroftheCompanyandDirectorofHoushengAgricultureEquipment.LuZhonggui:NowheactsasMinisterofpoliticalDepartmentoftheCompany,OfficeDirector,SecretaryofOrganPartyGeneralBranchaswellasemployeesupervisoroftheCompany.LiuYi:HesuccessivelytookthepostsofAssistantMinisterofEnterpriseManagementDepartment.NowheactsasDeputyDirectorofAuditDepartmentandSupervisoroftheCompanyandSupervisorofChangchaiWanzhouandChangchaiMachinery.HeJianjiang:HesuccessivelyactedastheSectionMember,AssistantMinister,ViceMinisterofInvestmentandDevelopmentDepartment,RepresentativeofSecuritiesintheCompany.NowheisSecretaryoftheBoardand
MinisterofInvestmentandDevelopmentDepartmentinourCompany,andDirectorofHoushengInvestment,ChangchaiRobin,HoushengAgriculturalEquipment,andChangchaiWanzhou.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
LinTian | ChangzhouInvestmentGroupCo.,Ltd. | Vicepresident,director | December2017 | Yes | |
Notes | Now,heisthevicepresidentanddirectorofChangzhouInvestmentGroupCo.,Ltd. |
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
ZhangQiong | SynergeticFundsManagementLimited | Supervisor | Yes | ||
LiMinghui | NanjingUniversity | DoctoralSupervisor | 1April2012 | Yes | |
BaoshengScience&TechnologyInnovationCo.,Ltd | IndependentDirector | 3December2014 | May2019 | ||
NanjingSecuritiesCo.,Ltd | IndependentDirector | 12May2016 | |||
JiangsuFastenCo.,Ltd | IndependentDirector | 20April2015 | November2019 | ||
GCLPower(Group)Co.,Ltd. | IndependentDirector | 18June2019 | |||
JiaBin | TianjinResearchInstituteofInternalCombustionEngine | theDirectorofNo.1Researchoffice | 1March2009 | Yes | |
ChinaInternalCombustionEngineIndustryAssociation | Secretary-generalofCICEIASmallGasolineEngineBranch. | 1November2011 | |||
FengGenfu | InstituteofEconomicsandFinanceinXi’anJiaotongUniversity | ProfessorandDoctoralAdvisor | 1March2016 | Yes |
DatangInternationalPowerGenerationCo.,Ltd. | IndependentDirector | 30June2016 | January2020 | ||
ChinaSecuritiesCo.,Ltd. | IndependentDirector | 15May2015 | |||
HuarenPharmaceuticalCo.,Ltd. | IndependentDirector | 28August2019 | |||
Xi’AnShaanguPowerCo.,Ltd. | IndependentDirector | 19December2019 | |||
Notes | None |
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√NotapplicableIVRemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
In2019,themonthlysalariesofdirectors,supervisorsandseniorexecutivesintheCompanywereinlinewiththestipulationsofrelevantsalarymanagementandgradestandards,andthebenefitsoftheCompanyandassessmentresults.TheDirectorLinTianobtainedsalariesinshareholders'entities.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
ShiXinkun | ChairmanoftheBoard | Male | 56 | Incumbent | 79.18 | No |
ZhangXin | Director,GeneralManager | Male | 54 | Incumbent | 79.18 | No |
ShiJianchun | Director,Vice-generalManager | Male | 58 | Incumbent | 79.18 | No |
LinTian | Director | Male | 57 | Incumbent | 0 | Yes |
ZhangQiong | Director | Female | 62 | Incumbent | 0 | No |
LiMinghui | Independentdirector | Male | 46 | Incumbent | 5 | No |
JiaBin | Independent | Male | 42 | Incumbent | 5 | No |
director | ||||||
FengGenfu | Independentdirector | Male | 63 | Former | 5 | No |
YinLihou | Vice-generalManager | Male | 56 | Incumbent | 68.67 | No |
XuYi | Vice-generalManager | Male | 56 | Incumbent | 69.14 | No |
LiuXiaoyun | Vice-generalManager | Male | 58 | Incumbent | 69.14 | No |
WeiJinxiang | Vice-generalManager | Male | 57 | Incumbent | 67.73 | No |
NiMingliang | ChairmanoftheSupervisoryCommittee | Male | 53 | Incumbent | 69.14 | No |
ZhuMin | Supervisor | Male | 56 | Incumbent | 0 | No |
XieGuozhong | Supervisor | Male | 51 | Incumbent | 54.17 | No |
LuZhonggui | Supervisor | Male | 53 | Incumbent | 17.01 | No |
LiuYi | Supervisor | Male | 51 | Incumbent | 18.14 | No |
HeJianjiang | SecretaryoftheBoard | Male | 41 | Incumbent | 40.45 | No |
Total | -- | -- | -- | -- | 726.13 | -- |
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
√Applicable□NotapplicableVEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
Numberofin-serviceemployeesoftheCompanyastheparent | 2,440 |
Numberofin-serviceemployeesofmajorsubsidiaries | 570 |
Totalnumberofin-serviceemployees | 3,010 |
TotalnumberofpaidemployeesintheReportingPeriod | 3,010 |
NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
Functions | |
Function | Employees |
Production | 1,992 |
Sales | 226 |
Technical | 360 |
Financial | 39 |
Administrative | 308 |
Other | 85 |
Total | 3,010 |
Educationalbackgrounds | |
Educationalbackground | Employees |
Juniorhighschoolgraduatesandbelow | 1,356 |
Highschoolgraduates | 852 |
Collegegraduatesandtechnicalsecondaryschoolgraduates | 525 |
Bachelors | 259 |
Mastersandabove | 18 |
Total | 3,010 |
PartXCorporateGovernanceIGeneralInformationofCorporateGovernance
IntheReportingPeriod,theCompanywasstrictlyinlinewithlaws,statutessuchasCompanyLaw,SecuritiesLaws,CodeofCorporateGovernanceofListedCompanies,GuideOpiniononEstablishmentofIndependentDirectorSystembyListedCompaniesandGuidelinesonInternalControlsofListedCompaniesandsoon,continuouslyperfectedcorporategovernance,establishedandaccomplishedinternalmanagementandcontrolsystem,consistentlyanddeeplyputforwardcorporategovernanceactivities,soastofurthernormalizedoperationoftheCompany,raisingcorporategovernancelevel,layingaguardforsteadyandhealthydevelopmentoftheCompany,protectlegalrightsandinterestsoftheCompanyandallshareholders.
TheCompanypromulgatedorrevisedaseriesofinternalcontrolsystemthroughallaspectsofnormaloperationandmanagementactivitiesinaccordancewitheachnationallawsandregulations,characteristicsoftheindustry,operationandself-managingbusiness,andimproveditcontinuously,andfinallyformedanormativemanagementsystem.Andformulatedaseriesofmanagementsystem,processandstandardcoveredeachoperationlinkandlevelofthefinancialassetscontrol,humanresourcesmanagement,qualityenvironmentmanagementandinternalauditsupervisoretc.,whichensuredalltheworkhadrulestofollow.IndicatebytickmarketwhetherthereisanymaterialincompliancewiththeregulatorydocumentsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.
IITheCompany’sIndependencefromItsControllingShareholderinBusiness,Personnel,Asset,OrganizationandFinancialAffairs
TheCompanywastotallyindependentfromthecontrollingshareholderChangzhouInvestmentGroupCo.,Ltdintermsofassets,business,personnel,organizationandfinancing,withindependent&completebusinessandcapabilitytooperateindependently.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
The2018AnnualGeneralMeeting | AnnualGeneralMeeting | 0.01% | 16May2019 | 17May2019 | 2019-019 |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√Notapplicable
VPerformanceofDutybyIndependentDirectorsintheReportingPeriod
1.AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
Attendanceofindependentdirectorsatboardmeetingsandgeneralmeetings | |||||||
Independentdirector | Totalnumberofboardmeetingstheindependentdirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingstheindependentdirectorfailedtoattend | Theindependentdirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
LiMinghui | 9 | 2 | 7 | 0 | 0 | No | 1 |
FengGenfu | 9 | 2 | 7 | 0 | 0 | No | 1 |
JiaBin | 9 | 2 | 7 | 0 | 0 | No | 1 |
2.ObjectionsRaisedbyIndependentDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranyindependentdirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
3.OtherInformationaboutthePerformanceofDutybyIndependentDirectorsIndicatebytickmarkwhetheranysuggestionsfromindependentdirectorswereadoptedbytheCompany.
√Yes□NoSuggestionsfromindependentdirectorsadoptedornotadoptedbytheCompany:
TheindependentdirectorsoftheCompanyinlinewiththelaw,rules,normativedocumentsandobligationsgivenbytheCompanyoftheCompanylaw,ArticleofAssociationsandIndependentDirectorsWorkRules,comprehensivelyfocusedonthedevelopmentandoperationoftheCompany,activelyattendedthegeneralmeetingofshareholderandmeetingofboardofdirectors,andgivenindependentopinionsforthesignificant
eventsoftheCompany,andeffectivelymaintainedtheprofitsoftheCompanyandalltheshareholders.TheCompanyactivelylistenedtothesuggestionsfromtheindependentdirectorsuponthesignificanteventsandadoptedthem.
VIPerformanceofDutybySpecializedCommitteesundertheBoardintheReportingPeriod
1.SummaryReportonResponsibilityPerformanceoftheAuditCommitteeundertheBoardofDirectors:
DuringtheReportingPeriod,theAuditCommitteeundertheBoardofDirectorsperformeditsdutyaccordingtothediligentandresponsibleprinciple,basedonrelevantregulationssuchastheCompanyLaw,theGuidelinesforCorporateGovernanceofListedCompanies,theArticlesofAssociationaswellasprovisionsintheEnforcementRegulationoftheAuditCommitteeundertheBoardofDirectoroftheCompany.
(1)MajorworkofAuditCommitteeinReportingPeriod:
1)PeriodicallyexaminedtheworkingplanandexecutionofinnercontroloftheCompany;
2)CommunicatedfullywiththeCPAsfirmonplanandcontentofaudit;
3)UrgedtheCPAsfirmtosummitreportasscheduled;
4)TheAuditCommitteereviewedthefinancialstatementsoftheCompanybeforetheauditandaftertheissuanceofpreliminaryopinionbytheCPAsfirm.AfteritcommunicatedwiththeCPAsfirmonsomeimportantitemsaswellasmajoraccountingestimationitems,auditadjustmentitemsandimportantaccountingpolicieswhichwerelikelytohavepotentialinfluenceonthefinancialstatements,itconsideredthatthefinancialstatementsreflectedtheoverallsituationoftheCompanyauthentically,accuratelyandcompletely.
5)SubmittedthesummaryreportonannualauditoftheCompanyconductedbytheCPAsfirmtotheBoardofDirectors;
6)AdvisedtocontinuetheappointmentofGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)astheauditinstitutionoftheCompanyin2020.
(2)WrittenopinionsonfinancialstatementsoftheCompanyissuedbytheAuditCommittee
1)On20March2020,theAuditCommitteetheAuditCommitteeexaminedthefinancialstatementsoftheCompanyafterthecertifiedpublicaccountantshadissuedthepreliminaryopiniononthestatements,andissuedawrittenopinionasfollows:ThefinancialstatementsoftheCompanywerepreparedinaccordancewiththeNewAccountingStandardsforEnterprisesandrelevantfinancialrulesoftheCompany,andfaithfullyreflectedthefinancialpositionoftheCompany,aswellasthebusinessresultsandcashflowsin2019inallmaterialaspects.
2)Withregardtotheauditedfinancialstatements2019,on9April2020,theAuditCommitteemadethefollowingresolution:theAuditCommitteereviewedthefinancialstatements2019auditedbyauditors,andbelievedthatthesaidfinancialstatementsfaithfullyreflectedthefinancialpositionoftheCompanyasat31December2019,aswellasthebusinessresultsandcashflowsin2019inallmaterialaspects.ItagreedtosubmitthestatementstotheBoardofDirectorsforexaminationandapproval.
(3)SummaryreportontheauditworkconductedbytheCPAsfirmin2019:
AccordingtotheannualauditplanjointlyformulatedbytheAuditCommitteeandGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership),auditorscommunicatedfullywiththemanagementpersonneloftheCompanyandmembersoftheAuditCommitteeontheconsolidationoffinancialstatements,accountingadjustment,accountingpolicyandotheraccountingworkneededtobeimproved,whichhelpedbothpartiesacquireadeeperunderstandingabouttheoperation,financialprocessandimplementationoftheNewAccountingStandardsforBusinessEnterprisesintheCompany.Withsuchunderstanding,theannualauditaccountantswouldmakemorematurejudgmenttoissueafairauditconclusion.
TheAuditCommitteeheldthattheCPAsfirmconductedtheauditstrictlyinaccordancewithprovisionsstipulatedintheIndependentAuditingStandardsforCPAsofthePRC.Thetimeofauditwassufficient,andtheauditorswithexcellentabilitytopracticeweredeployedreasonably.Theissuedauditor’sreportfullyreflectedthefinancialpositionoftheCompanyasat31December2019,aswellasthebusinessresultsandcashflowsin2019,andtheauditconclusionwasinlinewiththeactualsituationoftheCompany.
(4)ResolutionletteronrenewingtheemploymentoftheCPAsfirm:
TheAuditCommitteeconvenedameetingon9April2020toreviewthematterconcerningtheemploymentofaCPAsfirmfortheauditin2020,andthereviewopinionwasasfollows:
GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)hadaccomplishedtheauditoftheCompany2018,andtheauditor’sreportreflectedtheactualfinancialstatusoftheCompanyin2019objectivelyandfairly.
TheAuditCommitteewassatisfiedwiththeauditconductedbyGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)anddecidedtocontinuetoengageitastheauditinstitutionoftheCompanyin2020.Thesaidproposalwasagreedtobesubmittedtothe24
thMeetingofthe8
thBoardofDirectorsforreview.
2.SummaryReportonResponsibilityPerformanceofRemuneration&AppraisalCommitteeundertheBoardofDirectors:
TheRemuneration&AppraisalCommitteeundertheBoardofDirectorswascomposedof3Directors,including2IndependentDirectorsand1InnerDirector.AndoneoftheIndependentDirectorsassumedthepositionofChairmanoftheCommittee.
IntheReportingPeriod,theRemuneration&AppraisalCommitteeraisedtheproposalonimplementingtheappraisalofseniorexecutivesin2019,basedonthefulfillmentofthemainfinancialindicatorsandoperationtargetsin2019,whichweredeterminedintheContractforAppraisalofSeniorExecutivesin2019.
IntheReportingPeriod,basedonrelevantregulationsandrules,theRemuneration&AppraisalCommitteeexaminedtheremunerationoftheCompany’sseniorexecutivesin2019andissuedopinionsasfollows:
TheRemuneration&AppraisalCommitteeheldthat,theremunerationoftheCompany’sseniorexecutivesin2019wasinaccordancewithprovisionsintheContractforAppraisalofSeniorExecutivesin2019,aswellasthelaws,regulationsandrulesoftheCompany.
VIIPerformanceofDutybytheSupervisoryCommitteeIndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.VIIIAppraisalofandIncentiveforSeniorManagement
TheCompanyhasestablishedafairandobjectiveperformanceappraisalandincentiverestraintmechanismforseniormanagementstaffs.Theannualremunerationofseniormanagementstaffsconsistedofthebasicannualsalaryandperformanceappraisalbonus,andthebasicannualsalarywasdistributedmonthlywithacertainproportion,whiletheperformanceappraisalbonuswasdistributedafterbeingappraisedaccordingtotheappraisalschemeforseniormanagementstaffssignedbetweentheBoardofDirectorsandthemanagersforeachyear.
IXInternalControl
1.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
2.InternalControlSelf-EvaluationReport
Disclosuredateoftheinternalcontrolself-evaluationreport | 11April2020 |
Indextothedisclosedinternalcontrolself-evaluationreport | 2020-013 |
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;2)revisedthedisclosedfinancialreport;3)CPAsdiscoveredthegreatmisstatementamongthecurrentfinancialstatementwhilewhichcouldnotbefoundduringtheoperatingprocessoftheinternalcontrol;4)thesupervisionfromtheAuditCommitteeandtheinternalauditinstitutionoftheenterprisewasinvalid. | Defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)Seriouslyviolatedthenationallawsandadministrativeregulationsandthenormativedocuments;2)“threesignificantonegreat”eventhadnotbeenthroughthecollectivedecision-makingprocess;3)thesignificanteventsinvolvedwiththeproductionandoperationoftheCompanylackedofsystematiccontrolortheinstitutionalsystemwasinvalid;4)theinternalcontroloftheinformationdisclosurewasinvalid,whichledtheCompanybeopencondemnedbythesupervisiondepartment;5)theseriousdefectfromtheassessmentresultsoftheinternalcontrolhadnotbeenrevised. |
Quantitativestandard | Quantitativestandards:Thequantitativestandardsofrecognizingthesignificantdegreeofthemisstatement(includingthefalsenegatives)oftheconsolidatedfinancialreportoftheCompany | Refertothequantitativecriteriaoftheinternalcontroldefectofthefinancialreport,torecognizethequantitativecriteriaofthesignificantdegreeoftheinternalcontroldefectofthe |
basedonthedatafromthe2019consolidatedstatementswasas:Seriousdefect:misstatement≥5%oftheannualprofitsImportantdefect:2.5%oftheannualprofits≤misstatement<5%oftheannualprofitsGeneraldefect<2.5%oftheannualprofits | non-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 |
XIndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
WebelievedthatChangchaiCompany,LimitedmaintainedeffectiveinternalcontrolofthefinancialreportinsignificantaspectsaccordingtotheBasicNormsofInternalControlandrelevantregulationson31December2019. | |
Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
Disclosuredate | 11April2020 |
Indextosuchreportdisclosed | 2020-013 |
Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√No
Indicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□No
2.EmployeeRemunerationPolicy
TheCompanyalwaysadheredtotheprincipleoftiltingtheremunerationincentivemechanismtowardsexcellenttalents,soastodisplaytherolesofvariousprofessionaltechnicians,managementstaffsandskilledbackbones.Besides,itadheredtotheprincipleofincreasingtheemployee’sincomeintegratedwithincreasinglaborproductionefficiencyandproduction&operationefficiency,soastoperfectthesalarystructureandfurtherincreaseemployees’incomesteadily.
3.EmployeeTrainingPlans
TheCompanyestablishedtheManagementRulesontheEducation&TrainingforEmployees,aimingtoenhanceemployees’qualityandtryitsbesttocultivateateamoffaithfulandhighlyprofessionaltalents.Besides,itinnovatedthetrainingmechanism,optimizedthetrainingenvironment,andreinforcedtoencourageemployeestoattendvarioustraining,soastoinspiretheemployees’potentialtothemaximumextentandfurtherpromotethesustainabledevelopmentoftheCompany.
4.LaborOutsourcing
□Applicable√Notapplicable
PartXICorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?No.
PartXIIFinancialStatements
IIndependentAuditor’sReport
Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
Dateofsigningthisreport | 9April2020 |
Nameoftheindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
No.oftheauditor’sreport | SGW[2020]A237 |
Nameofthecertifiedpublicaccountants | DaiWeizhong,XuWenxiang |
TextoftheIndependentAuditor’sReport
TotheShareholdersofChangchaiCompany,Limited,
IOpinion
WehaveauditedtheaccompanyingfinancialstatementsofChangchaiCompany,Limited.(togetherwithitsconsolidatedsubsidiariesincludedintheconsolidatedfinancialstatements,the“Company”),whichcomprisetheparent’sandconsolidatedbalancesheetsasat31December2019,theparent’sandconsolidatedincomestatements,theparent’sandconsolidatedcashflowstatements,theparent’sandconsolidatedstatementsofchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionofChangchaiCompany,Limited.asat31December2019andtheconsolidatedandparentbusinessperformanceandcashflowfor2019.IIBasisforOpinion
WeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Andkeyauditmatteridentifiedinourauditissummarizedasfollows:
(I)Recognitionofrevenue
1.Descriptionoftheitem
Fordetailsofaccountingpoliciesgoverningrevenuerecognition,pleaserefertotheNoteIII-25RevenueandtheNoteV-37OperatingRevenueandCostofSales.TheoperatingrevenueoftheCompanyin2019isRMB2,040,133,700.
SincetheoperatingrevenueisoneofkeyperformanceindicatorsoftheCompany,andthereistheinherentriskthatthemanagementmaymanipulatethetimingofrevenuerecognitionforthepurposeofachievingcertaingoalsorexpectations,soweidentifytherevenuerecognitionasakeyaudititem.
2.Responseforaudit
(1)Knowthekeyinternalcontrolrelatedtorevenuerecognition,evaluatewhetheritsdesignandexecutionarevalidornot,andtesttheoperationeffectivenessoftherelatedinternalcontrol.
(2)Analyzeandassessthetime-pointoftransferringmajorrisksandrewardsrelatedtorecognitionofsalesrevenuethroughthesamplinginspectionofsalescontractandinterviewswithmanagement,andthenevaluatetherecognitionpoliciesofsalesrevenueoftheCompany.
(3)Checkthesupportingdocumentsrelatedtorevenuerecognition,suchassalescontracts,orderform,invoiceforsales,shippingorder,declarationforexportation,andetc.
(4)Checktheoperatingrevenuerecognizedbeforeandafterthebalancesheetdatetothesupportingdocuments,suchasshippingorder,declarationforexportation,andetcbysamplingmethodtoassesswhethertheoperatingrevenueisrecognizedwithinappropriateperiod.
(5)Implementtheconfirmationbydrawingsampletorecognizethebalanceofaccountsreceivableandtheamountofsalesrevenueaccordingtothefeaturesandnaturesofcustomertransaction.(II)Baddebtprovisionforaccountsreceivable
1.Descriptionoftheitem
PleaserefertotheaccountingpoliciesstipulatedintheNoteIII-10ImpairmentofFinancialAssetsandtheNoteV-4AccountsReceivable.On31December2019,asforaccountsreceivableoftheCompany,thecarryingamountwasRMB668.5874million,thebaddebtprovisionwasRMB249.2917million,andthecarryingvaluewasRMB419.2957million,accountingfor12.03%oftotalassetsattheperiod-end.Thebaddebtofaccountsreceivableduetofailureofrecoveryatmaturityorfailureofrecoverywillgeneratesignificantimpactsonfinancialstatements,thus,weidentifytheimpairmentofaccountsreceivableasakeyaudititem.
2.Responseforaudit
(1)AccessChangchai’sinternalcontrolsystemsofsalesandaccountsreceivablemanagementtounderstandandevaluatethedesignofinternalcontrol,andcarryoutwalk-throughtesttoconfirmtheimplementationofinternalcontrolsystems.
(2)AnalyzeandconfirmthereasonablenessofChangchai’saccountingestimatesofbaddebtprovisionforaccountsreceivable,includingthebasisfordeterminingthecombinationofaccountsreceivable,theexpectedcreditlossrateandthejudgmentofimpairmenttestofaccountsreceivableevaluatedindividually.
(3)Accessandchecktheaccountreceivabledetails,agingschedule,statementofprovisionsforbaddebts,andconfirmthereasonablenessofbaddebtprovisionforaccountsreceivablebycombiningwiththerequestofconfirmationofbalanceandsubsequentcollectioninspection;
(4)Understandthereasonsforaccountsreceivable,checkChangchai’sreconciliationandcollectionduringthereportingperiodandanyotherdatarelatedtopaymentrecovery,verifyandconfirmitsaccountsreceivablewithouttransactiondisputeattheendofthereportingperiod,aswellastheadequacyofbaddebtprovisionforaccountsreceivable.
(5)Sendrequestforconfirmationofbalance,andconfirmtheauthenticityandaccuracyoftheamountofaccountsreceivableonthebalancesheetdatebycombiningwithsubsequentinspectionandotherprocedures.IVOtherInformation
TheCompany’smanagement(hereinafterreferredtoas“management”)isresponsiblefortheotherinformation.TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2019AnnualReportotherthanthefinancialstatementsandourauditor’sreportthereon.
Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.VResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatements
ThemanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VIAuditor’sResponsibilitiesforAuditofFinancialStatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,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,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheCompanyaudit.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregardingtheplannedscopeandtimingoftheauditandsignificantauditfindings,includinganynoteworthydeficienciesininternalcontrolthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.GongzhengTianyeCertifiedPublicAccountantsChineseCPADaiWeizhong
(SpecialGeneralPartnership)(EngagementPartner)
ChineseCPAXuWenxiangWuxi·China9April2020IIFinancialStatements
Currencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
Unit:RMB
Item | 31December2019 | 31December2018 |
Currentassets: | ||
Monetaryassets | 637,214,006.06 | 800,960,036.69 |
Settlementreserve | ||
Interbankloansgranted | ||
Held-for-tradingfinancialassets | 10,000,000.00 | |
Financialassetsatfairvaluethroughprofitorloss | ||
Derivativefinancialassets | ||
Notesreceivable | 606,283,023.05 | 495,370,782.47 |
Accountsreceivable | 419,295,665.51 | 378,859,159.11 |
Accountsreceivablefinancing | ||
Prepayments | 12,930,546.16 | 11,352,297.10 |
Premiumsreceivable | ||
Reinsurancereceivables | ||
Receivablereinsurancecontractreserve | ||
Otherreceivables | 10,597,073.18 | 9,244,584.42 |
Including:Interestreceivable | ||
Dividendsreceivable | ||
Financialassetspurchasedunderresaleagreements | ||
Inventories | 473,352,010.58 | 557,953,891.70 |
Contractualassets | ||
Assetsclassifiedasheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 6,353,920.33 | 34,357,608.97 |
Totalcurrentassets | 2,176,026,244.87 | 2,288,098,360.46 |
Non-currentassets: | ||
Loansandadvancestocustomers | ||
Investmentsindebtobligations | ||
Available-for-salefinancialassets | 498,851,369.49 | |
Investmentsinotherdebtobligations | ||
Held-to-maturityinvestments | ||
Long-termreceivables | ||
Long-termequityinvestments | ||
Investmentsinotherequityinstruments | 532,886,000.00 | |
Othernon-currentfinancialassets | 77,952,101.63 | |
Investmentproperty | 48,447,666.83 | 50,656,007.63 |
Fixedassets | 457,582,514.13 | 511,250,371.37 |
Constructioninprogress | 91,358,156.24 | 89,090,384.71 |
Productivelivingassets | ||
Oilandgasassets | ||
Userightsassets | ||
Intangibleassets | 99,699,450.26 | 103,092,879.38 |
R&Dexpense | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 1,023,856.52 | 979,822.71 |
Othernon-currentassets | ||
Totalnon-currentassets | 1,308,949,745.61 | 1,253,920,835.29 |
Totalassets | 3,484,975,990.48 | 3,542,019,195.75 |
Currentliabilities: | ||
Short-termborrowings | 22,000,000.00 | 27,000,000.00 |
Borrowingsfromthecentralbank | ||
Interbankloansobtained | ||
Held-for-tradingfinancialliabilities | ||
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notespayable | 403,035,000.00 | 438,375,400.00 |
Accountspayable | 525,610,256.89 | 591,754,875.77 |
Advancesfromcustomers | 30,836,615.21 | 34,500,232.97 |
Contractualliabilities | ||
Financialassetssoldunderrepurchaseagreements | ||
Customerdepositsandinterbankdeposits | ||
Payablesforactingtradingofsecurities | ||
Payablesforunderwritingofsecurities | ||
Payrollpayable | 44,559,015.79 | 50,500,592.99 |
Taxespayable | 9,094,382.58 | 7,066,085.89 |
Otherpayables | 203,840,127.19 | 199,412,250.90 |
Including:Interestpayable | 0.00 | 0.00 |
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Handlingchargesandcommissionspayable | ||
Reinsurancepayables | ||
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | |
Othercurrentliabilities | 1,177,712.38 | 2,082,985.18 |
Totalcurrentliabilities | 1,240,153,110.04 | 1,369,192,423.70 |
Non-currentliabilities: | ||
Insurancecontractreserve | ||
Long-termborrowings | 0.00 | 2,000,000.00 |
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 58,864,111.22 | 59,928,484.84 |
Deferredincometaxliabilities | 57,082,890.27 | 47,971,780.36 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 115,947,001.49 | 109,900,265.20 |
Totalliabilities | 1,356,100,111.53 | 1,479,092,688.90 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 164,328,665.43 | 164,328,665.43 |
Less:Treasurystock | ||
Othercomprehensiveincome | 317,059,775.00 | 264,405,675.00 |
Specificreserve | 17,560,202.07 | 15,182,958.83 |
Surplusreserves | 322,226,700.34 | 320,133,050.15 |
Generalreserve | ||
Retainedearnings | 726,689,929.10 | 717,883,351.33 |
TotalequityattributabletoownersoftheCompanyastheparent | 2,109,239,597.94 | 2,043,308,026.74 |
Non-controllinginterests | 19,636,281.01 | 19,618,480.11 |
Totalowners’equity | 2,128,875,878.95 | 2,062,926,506.85 |
Totalliabilitiesandowners’equity | 3,484,975,990.48 | 3,542,019,195.75 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item | 31December2019 | 31December2018 |
Currentassets: | ||
Monetaryassets | 584,957,678.96 | 759,404,219.72 |
Held-for-tradingfinancialassets | ||
Financialassetsatfairvaluethroughprofitorloss | ||
Derivativefinancialassets | ||
Notesreceivable | 576,948,023.05 | 490,519,795.91 |
Accountsreceivable | 337,447,538.04 | 300,357,283.81 |
Accountsreceivablefinancing | ||
Prepayments | 6,386,284.14 | 4,768,038.11 |
Otherreceivables | 23,639,899.46 | 21,681,331.85 |
Including:Interestreceivable | ||
Dividendsreceivable | ||
Inventories | 368,653,472.39 | 437,423,195.46 |
Contractualassets | ||
Assetsclassifiedasheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 3,898,333.51 | 23,099,858.67 |
Totalcurrentassets | 1,901,931,229.55 | 2,037,253,723.53 |
Non-currentassets: | ||
Investmentsindebtobligations | ||
Available-for-salefinancialassets | 470,940,000.00 | |
Investmentsinotherdebtobligations | ||
Held-to-maturityinvestments | ||
Long-termreceivables |
Long-termequityinvestments | 251,752,730.03 | 241,752,730.03 |
Investmentsinotherequityinstruments | 532,886,000.00 | |
Othernon-currentfinancialassets | 50,000,000.00 | |
Investmentproperty | 48,447,666.83 | 50,656,007.63 |
Fixedassets | 364,071,199.07 | 413,186,680.19 |
Constructioninprogress | 89,330,161.60 | 87,007,215.91 |
Productivelivingassets | ||
Oilandgasassets | ||
Userightsassets | ||
Intangibleassets | 70,169,770.91 | 72,184,608.63 |
R&Dexpense | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 970,026.67 | 930,641.19 |
Othernon-currentassets | ||
Totalnon-currentassets | 1,407,627,555.11 | 1,336,657,883.58 |
Totalassets | 3,309,558,784.66 | 3,373,911,607.11 |
Currentliabilities: | ||
Short-termborrowings | 5,000,000.00 | 10,000,000.00 |
Held-for-tradingfinancialliabilities | ||
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notespayable | 392,105,000.00 | 425,995,400.00 |
Accountspayable | 481,854,210.18 | 561,555,397.44 |
Advancesfromcustomers | 28,673,664.87 | 32,072,387.55 |
Contractualliabilities | ||
Payrollpayable | 39,125,477.30 | 43,597,759.22 |
Taxespayable | 5,952,664.10 | 2,443,767.89 |
Otherpayables | 191,962,821.35 | 185,022,961.56 |
Including:Interestpayable | 0.00 | 0.00 |
Dividendspayable | 3,243,179.97 | 3,243,179.97 |
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | |
Othercurrentliabilities | ||
Totalcurrentliabilities | 1,144,673,837.80 | 1,279,187,673.66 |
Non-currentliabilities: | ||
Long-termborrowings | ||
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 58,864,111.22 | 59,928,484.84 |
Deferredincometaxliabilities | 55,951,725.00 | 46,659,825.00 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 114,815,836.22 | 106,588,309.84 |
Totalliabilities | 1,259,489,674.02 | 1,385,775,983.50 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 183,071,147.70 | 183,071,147.70 |
Less:Treasurystock | ||
Othercomprehensiveincome | 317,059,775.00 | 264,405,675.00 |
Specificreserve | 17,560,202.07 | 15,182,958.83 |
Surplusreserves | 322,226,700.34 | 320,133,050.15 |
Retainedearnings | 648,776,959.53 | 643,968,465.93 |
Totalowners’equity | 2,050,069,110.64 | 1,988,135,623.61 |
Totalliabilitiesandowners’equity | 3,309,558,784.66 | 3,373,911,607.11 |
3.ConsolidatedIncomeStatement
Unit:RMB
Item | 2019 | 2018 |
1.Revenue | 2,040,133,717.30 | 2,132,902,718.60 |
Including:Operatingrevenue | 2,040,133,717.30 | 2,132,902,718.60 |
Interestincome | ||
Premiumincome | ||
Handlingchargeandcommissionincome | ||
2.Costsandexpenses | 1,985,673,605.20 | 2,140,281,299.65 |
Including:Costofsales | 1,709,649,777.75 | 1,813,444,585.66 |
Interestexpense | ||
Handlingchargeandcommissionexpense | ||
Surrenders | ||
Netclaimspaid | ||
Netamountprovidedasinsurancecontractreserve | ||
Expenditureonpolicydividends | ||
Reinsurancepremiumexpense | ||
Taxesandsurcharges | 10,959,071.89 | 12,532,729.68 |
Sellingexpense | 97,085,117.05 | 126,997,066.87 |
Administrativeexpense | 106,183,133.40 | 116,027,838.96 |
R&Dexpense | 66,221,376.27 | 72,182,840.78 |
Financecosts | -4,424,871.16 | -903,762.30 |
Including:Interestexpense | 5,722,554.43 | 4,553,608.46 |
Interestincome | 6,719,990.78 | 4,665,445.23 |
Add:Otherincome | 5,312,295.51 | 6,291,685.65 |
Returnoninvestment(“-”forloss) | 7,951,711.61 | 113,270,824.83 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
Foreignexchangegain(“-”forloss) | ||
Netgainonexposurehedges(“-”forloss) |
Gainonchangesinfairvalue(“-”forloss) | -49,255.00 | |
Creditimpairmentloss(“-”forloss) | -933,128.89 | |
Assetimpairmentloss(“-”forloss) | -42,371,202.17 | -37,598,498.08 |
Assetdisposalincome(“-”forloss) | 2,059,668.56 | 662,151.89 |
3.Operatingprofit(“-”forloss) | 26,430,201.72 | 75,247,583.24 |
Add:Non-operatingincome | 446,345.38 | 1,938,995.76 |
Less:Non-operatingexpense | 219,341.54 | 1,474,218.49 |
4.Profitbeforetax(“-”forloss) | 26,657,205.56 | 75,712,360.51 |
Less:Incometaxexpense | 1,704,818.55 | 13,545,662.67 |
5.Netprofit(“-”fornetloss) | 24,952,387.01 | 62,166,697.84 |
5.1Byoperatingcontinuity | ||
5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 24,952,387.01 | 62,166,697.84 |
5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
5.2Byownership | ||
5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 24,934,586.11 | 62,021,374.04 |
5.2.1Netprofitattributabletonon-controllinginterests | 17,800.90 | 145,323.80 |
6.Othercomprehensiveincome,netoftax | 52,654,100.00 | -250,662,875.00 |
AttributabletoownersoftheCompanyastheparent | 52,654,100.00 | -250,662,875.00 |
6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 52,654,100.00 | |
6.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 52,654,100.00 | |
6.1.4Changesinthefairvalueofthecompany’screditrisks | ||
6.1.5Other | ||
6.2Itemsthatwillbereclassifiedtoprofitorloss | -250,662,875.00 |
6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
6.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | -250,662,875.00 | |
6.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
6.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
6.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
6.2.7Reserveforcashflowhedges | ||
6.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
6.2.9Other | ||
Attributabletonon-controllinginterests | ||
7.Totalcomprehensiveincome | 77,606,487.01 | -188,496,177.16 |
AttributabletoownersoftheCompanyastheparent | 77,588,686.11 | -188,641,500.96 |
Attributabletonon-controllinginterests | 17,800.90 | 145,323.80 |
8.Earningspershare | ||
8.1Basicearningspershare | 0.04 | 0.11 |
8.2Dilutedearningspershare | 0.04 | 0.11 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
Item | 2019 | 2018 |
1.Operatingrevenue | 1,866,291,739.39 | 1,968,727,065.36 |
Less:Costofsales | 1,575,626,989.46 | 1,689,706,860.63 |
Taxesandsurcharges | 8,407,285.53 | 9,550,011.21 |
Sellingexpense | 89,281,567.68 | 113,219,756.42 |
Administrativeexpense | 89,269,943.25 | 99,399,032.15 |
R&Dexpense | 60,705,823.99 | 70,981,785.06 |
Financecosts | -7,320,351.23 | -2,269,683.27 |
Including:Interestexpense | 1,974,711.69 | 1,150,062.50 |
Interestincome | 6,955,017.26 | 4,320,565.70 |
Add:Otherincome | 3,864,303.74 | 6,156,851.75 |
Returnoninvestment(“-”forloss) | 6,206,814.50 | 112,464,720.49 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
Netgainonexposurehedges(“-”forloss) | ||
Gainonchangesinfairvalue(“-”forloss) | ||
Creditimpairmentloss(“-”forloss) | 750,844.30 | |
Assetimpairmentloss(“-”forloss) | -41,914,242.93 | -33,088,706.77 |
Assetdisposalincome(“-”forloss) | 2,072,367.71 | 577,265.23 |
2.Operatingprofit(“-”forloss) | 21,300,568.03 | 74,249,433.86 |
Add:Non-operatingincome | 13,825.00 | 1,231,701.78 |
Less:Non-operatingexpense | 141,118.07 | 1,442,817.89 |
3.Profitbeforetax(“-”forloss) | 21,173,274.96 | 74,038,317.75 |
Less:Incometaxexpense | 236,773.02 | 9,759,917.90 |
4.Netprofit(“-”fornetloss) | 20,936,501.94 | 64,278,399.85 |
4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 20,936,501.94 | 64,278,399.85 |
4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) |
5.Othercomprehensiveincome,netoftax | 52,654,100.00 | -250,662,875.00 |
5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 52,654,100.00 | |
5.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 52,654,100.00 | |
5.1.4Changesinthefairvalueofthecompany’screditrisks | ||
5.1.5Other | ||
5.2Itemsthatwillbereclassifiedtoprofitorloss | -250,662,875.00 | |
5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
5.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | -250,662,875.00 | |
5.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
5.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
5.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
5.2.7Reserveforcashflowhedges | ||
5.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
5.2.9Other | ||
6.Totalcomprehensiveincome | 73,590,601.94 | -186,384,475.15 |
7.Earningspershare | ||
7.1Basicearningspershare | ||
7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
Unit:RMB
Item | 2019 | 2018 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 2,172,685,126.88 | 2,425,197,716.22 |
Netincreaseincustomerdepositsandinterbankdeposits | ||
Netincreaseinborrowingsfromthecentralbank | ||
Netincreaseinloansfromotherfinancialinstitutions | ||
Premiumsreceivedonoriginalinsurancecontracts | ||
Netproceedsfromreinsurance | ||
Netincreaseindepositsandinvestmentsofpolicyholders | ||
Interest,handlingchargesandcommissionsreceived | ||
Netincreaseininterbankloansobtained | ||
Netincreaseinproceedsfromrepurchasetransactions | ||
Netproceedsfromactingtradingofsecurities | ||
Taxrebates | 42,607,617.45 | 57,089,558.17 |
Cashgeneratedfromotheroperatingactivities | 11,679,968.90 | 12,322,331.45 |
Subtotalofcashgeneratedfromoperatingactivities | 2,226,972,713.23 | 2,494,609,605.84 |
Paymentsforcommoditiesandservices | 1,820,127,110.80 | 1,748,699,087.54 |
Netincreaseinloansandadvancestocustomers | ||
Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
Paymentsforclaimsonoriginalinsurancecontracts |
Netincreaseininterbankloansgranted | ||
Interest,handlingchargesandcommissionspaid | ||
Policydividendspaid | ||
Cashpaidtoandforemployees | 286,479,391.58 | 321,746,157.63 |
Taxespaid | 19,775,735.08 | 33,740,896.03 |
Cashusedinotheroperatingactivities | 121,133,333.29 | 116,603,937.75 |
Subtotalofcashusedinoperatingactivities | 2,247,515,570.75 | 2,220,790,078.95 |
Netcashgeneratedfrom/usedinoperatingactivities | -20,542,857.52 | 273,819,526.89 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | 11,201,882.58 | 43,589,736.75 |
Returnoninvestment | 8,488,216.45 | 113,425,932.70 |
Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 326,835.85 | 979,093.38 |
Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
Cashgeneratedfromotherinvestingactivities | ||
Subtotalofcashgeneratedfrominvestingactivities | 20,016,934.88 | 157,994,762.83 |
Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 39,198,814.48 | 18,482,660.75 |
Paymentsforinvestments | 58,980,496.31 | 33,293,147.06 |
Netincreaseinpledgedloansgranted | ||
Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
Cashusedinotherinvestingactivities | ||
Subtotalofcashusedininvestingactivities | 98,179,310.79 | 51,775,807.81 |
Netcashgeneratedfrom/usedininvestingactivities | -78,162,375.91 | 106,218,955.02 |
3.Cashflowsfromfinancingactivities: |
Capitalcontributionsreceived | ||
Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
Borrowingsobtained | 34,000,000.00 | 40,700,000.00 |
Cashgeneratedfromotherfinancingactivities | ||
Subtotalofcashgeneratedfromfinancingactivities | 34,000,000.00 | 40,700,000.00 |
Repaymentsofborrowings | 59,500,000.00 | 39,600,000.00 |
Paymentsforinterestanddividends | 19,005,058.96 | 19,322,496.75 |
Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
Cashusedinotherfinancingactivities | ||
Subtotalofcashusedinfinancingactivities | 78,505,058.96 | 58,922,496.75 |
Netcashgeneratedfrom/usedinfinancingactivities | -44,505,058.96 | -18,222,496.75 |
4.Effectofforeignexchangeratechangesoncashandcashequivalents | 715,396.97 | |
5.Netincreaseincashandcashequivalents | -142,494,895.42 | 361,815,985.16 |
Add:Cashandcashequivalents,beginningoftheperiod | 687,079,639.59 | 325,263,654.43 |
6.Cashandcashequivalents,endoftheperiod | 544,584,744.17 | 687,079,639.59 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
Item | 2019 | 2018 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 1,911,679,765.84 | 2,373,022,957.25 |
Taxrebates | 34,035,423.13 | 40,981,398.83 |
Cashgeneratedfromotheroperatingactivities | 9,754,947.38 | 10,293,262.16 |
Subtotalofcashgeneratedfromoperatingactivities | 1,955,470,136.35 | 2,424,297,618.24 |
Paymentsforcommoditiesandservices | 1,637,576,894.25 | 1,748,150,322.59 |
Cashpaidtoandforemployees | 237,310,147.26 | 268,331,025.24 |
Taxespaid | 8,675,558.38 | 21,464,799.34 |
Cashusedinotheroperatingactivities | 107,932,998.05 | 114,428,231.52 |
Subtotalofcashusedinoperatingactivities | 1,991,495,597.94 | 2,152,374,378.69 |
Netcashgeneratedfrom/usedinoperatingactivities | -36,025,461.59 | 271,923,239.55 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | 4,000,000.00 | 30,000,000.00 |
Returnoninvestment | 6,206,814.50 | 112,621,521.91 |
Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 297,935.85 | 867,615.38 |
Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
Cashgeneratedfromotherinvestingactivities | 9,500,000.00 | |
Subtotalofcashgeneratedfrominvestingactivities | 20,004,750.35 | 143,489,137.29 |
Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 30,078,441.85 | 16,631,342.48 |
Paymentsforinvestments | 60,000,000.00 | 10,000,000.00 |
Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits |
Cashusedinotherinvestingactivities | 9,500,000.00 | |
Subtotalofcashusedininvestingactivities | 99,578,441.85 | 26,631,342.48 |
Netcashgeneratedfrom/usedininvestingactivities | -79,573,691.50 | 116,857,794.81 |
3.Cashflowsfromfinancingactivities: | ||
Capitalcontributionsreceived | ||
Borrowingsobtained | 5,000,000.00 | 10,000,000.00 |
Cashgeneratedfromotherfinancingactivities | ||
Subtotalofcashgeneratedfromfinancingactivities | 5,000,000.00 | 10,000,000.00 |
Repaymentsofborrowings | 28,500,000.00 | 1,000,000.00 |
Paymentsforinterestanddividends | 16,009,069.84 | 17,991,292.28 |
Cashusedinotherfinancingactivities | ||
Subtotalofcashusedinfinancingactivities | 44,509,069.84 | 18,991,292.28 |
Netcashgeneratedfrom/usedinfinancingactivities | -39,509,069.84 | -8,991,292.28 |
4.Effectofforeignexchangeratechangesoncashandcashequivalents | 1,031,120.95 | |
5.Netincreaseincashandcashequivalents | -154,077,101.98 | 379,789,742.08 |
Add:Cashandcashequivalents,beginningoftheperiod | 651,854,206.79 | 272,064,464.71 |
6.Cashandcashequivalents,endoftheperiod | 497,777,104.81 | 651,854,206.79 |
7.ConsolidatedStatementsofChangesinOwners’Equity2019
Unit:RMB
Item | 2019 | ||||||||||||||
EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
Preferredshares | Perpetualbonds | Other | |||||||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 | ||||||
Add:Adjustmentsforchangedaccountingpolicies |
Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||
Otheradjustments | |||||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 |
3.Increase/decreaseintheperiod(“-”fordecrease) | 52,654,100.00 | 2,377,243.24 | 2,093,650.19 | 8,806,577.77 | 65,931,571.20 | 17,800.90 | 65,949,372.10 | |||
3.1Totalcomprehensiveincome | 52,654,100.00 | 24,934,586.11 | 77,588,686.11 | 17,800.90 | 77,606,487.01 | |||||
3.2Capitalincreasedandreducedbyowners | ||||||||||
3.2.1Ordinarysharesincreasedbyowners |
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||
3.2.4Other | ||||||||
3.3Profitdistribution | 2,093,650.19 | -16,128,008.34 | -14,034,358.15 | -14,034,358.15 |
3.3.1Appropriationtosurplusreserves | 2,093,650.19 | -2,093,650.19 | ||||||
3.3.2Appropriationtogeneralreserve | ||||||||
3.3.3Appropriationtoowners(orshareholders) | -14,034,358.15 | -14,034,358.15 | -14,034,358.15 | |||||
3.3.4Other | ||||||||
3.4Transferswithinowners’equity |
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||
3.4.6Other | ||||||
3.5Specificreserve | 2,377,243.24 | 2,377,243.24 | 2,377,243.24 |
3.5.1Increaseintheperiod | 3,868,727.07 | 3,868,727.07 | 3,868,727.07 | ||||||||||
3.5.2Usedintheperiod | 1,491,483.83 | 1,491,483.83 | 1,491,483.83 | ||||||||||
3.6Other | |||||||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 317,059,775.00 | 17,560,202.07 | 322,226,700.34 | 726,689,929.10 | 2,109,239,597.94 | 19,636,281.01 | 2,128,875,878.95 |
2018
Unit:RMB
Item | 2018 | ||||||||||||||
EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
Preferredshares | Perpetualbonds | Other |
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 2,246,896,857.86 | 19,473,156.31 | 2,266,370,014.17 | ||||
Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
Adjustmentsforbusinesscombinationsundercommoncontrol |
Otheradjustments | |||||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 2,246,896,857.86 | 19,473,156.31 | 2,266,370,014.17 | ||||
3.Increase/decreaseintheperiod(“-”fordecrease) | -250,662,875.00 | 1,893,899.62 | 6,427,839.99 | 38,752,304.27 | -203,588,831.12 | 145,323.80 | -203,443,507.32 | ||||||
3.1Totalcomprehensiveincome | -250,662,875.00 | 62,021,374.04 | -188,641,500.96 | 145,323.80 | -188,496,177.16 | ||||||||
3.2Capitalincreasedandreducedbyowners |
3.2.1Ordinarysharesincreasedbyowners |
3.2.2Capitalincreasedbyholdersofotherequityinstruments |
3.2.3Share-basedpaymentsincludedinowners’equity |
3.2.4Other |
3.3Profitdistribution | 6,427,839.99 | -23,269,069.77 | -16,841,229.78 | -16,841,229.78 | ||||
3.3.1Appropriationtosurplusreserves | 6,427,839.99 | -6,427,839.99 | ||||||
3.3.2Appropriationtogeneralreserve | ||||||||
3.3.3Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | -16,841,229.78 | |||||
3.3.4Other |
3.4Transferswithinowners’equity |
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||
3.4.6Other | ||||||
3.5Specificreserve | 1,893,899.62 | 1,893,899.62 | 1,893,899.62 |
3.5.1Increaseintheperiod | 4,135,805.99 | 4,135,805.99 | 4,135,805.99 | ||||||||||
3.5.2Usedintheperiod | 2,241,906.37 | 2,241,906.37 | 2,241,906.37 | ||||||||||
3.6Other | |||||||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2019
Unit:RMB
Item | 2019 | |||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
Preferredshares | Perpetualbonds | Other | ||||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 | |||||
Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
Otheradjustments |
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 | |||
3.Increase/decreaseintheperiod(“-”fordecrease) | 52,654,100.00 | 2,377,243.24 | 2,093,650.19 | 4,808,493.60 | 61,933,487.03 | |||||
3.1Totalcomprehensiveincome | 52,654,100.00 | 20,936,501.94 | 73,590,601.94 | |||||||
3.2Capitalincreasedandreducedbyowners | ||||||||||
3.2.1Ordinarysharesincreasedbyowners | ||||||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments |
3.2.3Share-basedpaymentsincludedinowners’equity | |||||
3.2.4Other | |||||
3.3Profitdistribution | 2,093,650.19 | -16,128,008.34 | -14,034,358.15 | ||
3.3.1Appropriationtosurplusreserves | 2,093,650.19 | -2,093,650.19 | |||
3.3.2Appropriationtoowners(orshareholders) | -14,034,358.15 | -14,034,358.15 | |||
3.3.3Other | |||||
3.4Transferswithinowners’equity |
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
3.4.6Other | ||||||||||
3.5Specificreserve | 2,377,243.24 | 2,377,243.24 | ||||||||
3.5.1Increaseintheperiod | 3,868,727.07 | 3,868,727.07 | ||||||||
3.5.2Usedintheperiod | 1,491,483.83 | 1,491,483.83 | ||||||||
3.6Other | ||||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 317,059,775.00 | 17,560,202.07 | 322,226,700.34 | 648,776,959.53 | 2,050,069,110.64 |
2018
Unit:RMB
Item | 2018 | |||||||||
Share | Otherequityinstruments | Capital | Less: | Other | Specific | Surplus | Retained | Oth | Totalowners’ |
capital | Preferredshares | Perpetualbonds | Other | reserves | Treasurystock | comprehensiveincome | reserve | reserves | earnings | er | equity | |
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | |||||
Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
Otheradjustments | ||||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | |||||
3.Increase/decreaseintheperiod(“-”fordecrease) | -250,662,875.00 | 1,893,899.62 | 6,427,839.99 | 41,009,330.08 | -201,331,805.31 |
3.1Totalcomprehensiveincome | -250,662,875.00 | 64,278,399.85 | -186,384,475.15 | |||
3.2Capitalincreasedandreducedbyowners | ||||||
3.2.1Ordinarysharesincreasedbyowners | ||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||||
3.2.4Other |
3.3Profitdistribution | 6,427,839.99 | -23,269,069.77 | -16,841,229.78 | ||
3.3.1Appropriationtosurplusreserves | 6,427,839.99 | -6,427,839.99 | |||
3.3.2Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | |||
3.3.3Other | |||||
3.4Transferswithinowners’equity | |||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
3.4.5Othercomprehensiveincometransferredtoretainedearnings |
3.4.6Other |
3.5Specificreserve | 1,893,899.62 | 1,893,899.62 | ||||||||
3.5.1Increaseintheperiod | 4,135,805.99 | 4,135,805.99 | ||||||||
3.5.2Usedintheperiod | 2,241,906.37 | 2,241,906.37 | ||||||||
3.6Other | ||||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 |
III.CompanyProfile
ChangchaiCompany,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
ndExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange.Asat31December2015,thetotalsharecapitaloftheCompanyis561,374,326.00shares,aswellasregisteredcapitalofRMB561,374,326.00,whichverifiedbyGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)withissuingCapitalVerificationReportSGC[2010]No.B002.AndtheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.
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,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.
ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson9April2020.
TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand6subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparation
Withthegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theCompanypreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusiness
Enterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theCompanyadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.Continuation
TheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthefinancialinstruments,withdrawalmethodofthebaddebtprovisionoftheaccountsreceivable,themeasurementoftheinventoryandthedepreciationofthefixedassetsetc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheCompany’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriod
Thefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycle
AnormaloperatingcyclereferstoaperiodfromtheCompanypurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheCompanyis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.
Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)Businesscombinationsnotunderthesamecontrol
Abusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.
Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedin
thecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheCompanyholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheCompanyholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatementsTheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheCompanyarerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.
TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.
Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthefinancialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationasparticipatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjusttheperiod-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthecomparedstatement.
Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthecurrentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.
WheretheCompanylossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefair
valueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheCompanyaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheCompany’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.
Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheCompanylosingcontrolonitssubsidiary.
Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
TheCompanyclassifiesjointarrangementsintojointoperationsandjointventures.
AjointoperationreferstoajointarrangementwheretheCompanyisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheCompany’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheCompany’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheCompany’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheCompany’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheCompanyandtheexpenseincurredtothejointoperationaccordingtotheCompany’sstakeinit.
8.RecognitionStandardforCashandCashEquivalentsIntheCompany’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.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)Translationofforeigncurrency
Theassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstruments
(1)ClassificationofFinancialInstruments
TheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)andfinancialassetsatfairvaluethroughprofitorloss
Financialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①Financialassetsmeasuredatamortizedcost
Financialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Foraccountsreceivableexcludingsignificantfinancing
andaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,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.
⑤FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-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.TheCompanyadoptsthevaluationtechniquesapplicabletothecurrentconditionswhicharesupportedbysufficientdataandotherinformationforvaluation,andselectstheinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinassetorliabilitytransactions,withprioritytoobservableinputvalues.Unobservableinputvaluesareusedonlywhenrelevantobservableinputvaluesarenotavailableorpractical.
(6)Impairmentoffinancialinstrument
①ImpairmentmeasurementandaccountinghandlingoffinancialinstrumentBasedonexpectedcreditloss,theCompanyconductsimpairmenthandlingandconfirmscreditimpairmentlossforfinancialassetswhichismeasuredbyamortizedcost,debtinstrumentinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,financialguaranteecontract
Expectedcreditlossreferstoweightedaverageofcreditlossoffinancialinstrumentwhichtakestheriskofcontractbreachoccurrenceastheweight.Creditlossreferstothedifferencebetweenallcontractcashflowwhichisconvertedintocashaccordingtoactualinterestrateandreceivableaccordingtocontractandallcashflowwhichtobechargedasexpected,i.e.currentvalueofallcashshortage.Amongit,asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,itshouldbeconvertedintocashaccordingactualinterestrateofthisfinancialassetaftercreditadjustment.
Asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,theCompanyonlyconfirms
cumulativechangeofexpectedcreditlosswithinthewholedurationafterinitialconfirmationonthebalancesheetdateaslossreserve.
Asforaccountsreceivablewhichdon’tincludemajorfinancingcontentsortheCompanydoesnotconsiderfinancingcontentsincontractwhichislessthanoneyear,theCompanyappliessimplifiedmeasurementmethod,andmeasureslossreserveaccordingtoamountofexpectedcreditlosswithinthewholeduration.Asforaccountreceivableofrentalandaccountsreceivableincludingmajorfinancingcontents,theCompanyappliessimplifiedmeasurementmethod,andmeasurelossreserveaccordingtoamountofexpectedcreditlosswithinthewholeduration.
Asforfinancialassetbeyondabovementionedmeasurementmethods,theCompanyevaluateswhetheritscreditriskhasincreasedobviouslysincetheinitialconfirmationoneachbalancesheetdate.Incasecreditriskhasincreasedobviously,theCompanymeasuresthelossreserveaccordingtoamountofexpectedcreditlosswithinthewholeduration;incasethecreditriskdoesnotincreaseobviously,theCompanymeasureslossreserveaccordingtotheamountofexpectedcreditlossinnext12months.
Byutilizingobtainablerationalandwellgroundedinformation,includingforward-lookinginformation,comparingtheriskofcontractbreachonbalancesheetdateandriskofcontractbreachoninitialconfirmationdate,theCompanyconfirmswhetherthecreditriskoffinancialinstrumenthasincreasedobviouslyfrominitialconfirmation.
Onbalancesheetdate,incasetheCompanyjudgesthatthefinancialinstrumentjusthasrelativelylowcreditrisk,thenitwillbeassumedthatcreditriskofthefinancialinstrumenthasnotincreasedobviously.
Basedonsinglefinancialinstrumentorfinancialportfolio,theCompanyevaluatesexpectedcreditriskandmeasuresexpectedcreditloss.Whenbasedonfinancialinstrumentportfolio,theCompanytakescommonriskcharacteristicsasthebasis,anddividesfinancialinstrumentsintodifferentportfolios.
TheCompanymeasuresexpectedcreditlossagainoneachbalancesheetdate,theincreaseoflossreserveoramountwhichistransferbackgeneratedbyitiscalculatedintocurrentprofitsandlossesasimpairmentprofitsorlosses.Asforfinancialassetwhichismeasuredbyamortizedcost,lossreserveoffsetsthecarryingvalueofthefinancialassetlistedinthebalancesheet;asfordebtinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,theCompanyconfirmsitslossreserveinothercomprehensiveprofitsanddoesnotoffsetthecarryingvalueofthefinancialasset.
②Fornotesreceivable,accountsreceivable,otherreceivablesandlong-termreceivableswithobjectiveevidenceindicatingimpairmentandthosesuitableforindividualevaluation,theCompanycarriesoutimpairmenttestseparatelytoconfirmexpectedcreditlossandprepareprovisionforimpairmentofsingleitems.Fornotesreceivable,accountsreceivableandotherreceivableswithoutobjectiveevidenceofimpairment,orasinglefinancialassetwithexpectedcreditlossimpossibletobeassessedatareasonablecost,theCompanydividesthereceivablesintogroupsaccordingtothecharacteristicsofcreditrisk,andcalculatetheexpectedcreditlossbasedonreceivablegroups.AccountsreceivablewithexpectedcreditlossesmeasuredbygroupsSpecificgroupsandmethodofmeasuringexpectedcreditloss
Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
Bank’sacceptancebillsreceivable | Billtype | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Tradeacceptancebillsreceivable |
Accountsreceivable-creditriskcharacteristicsgroup | Aginggroup | Preparethecomparativelistbetweenagingofaccountsreceivableandexpectedcreditlossrateovertheentirelifeandcalculatetheexpectedcreditlossbyconsultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation |
Accountsreceivable-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Accountsreceivable-thecomparativelistbetweenagingofcreditriskcharacteristicgroupandexpectedcreditlossrateovertheentirelife
Aging | Withdrawalproportion |
Within1year | 2.00% |
1to2years | 5.00% |
2to3years | 15.00% |
3to4years | 30.00% |
4to5years | 60.00% |
Over5years | 100.00% |
OtherreceivableswithexpectedcreditlossesmeasuredbygroupsSpecificgroupsandmethodofmeasuringexpectedcreditloss
Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
Otherreceivables-aginganalysisgroup | Aginggroup | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
Otherreceivables-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Forthemeasurementofimpairmentlossofotherreceivables,refertotheaforesaidmeasurementofimpairmentlossofaccountsreceivable.
11.NotesReceivable
See“10.FinancialInstruments”.
12.AccountsReceivableSee“10.FinancialInstruments”.
13.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,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproductsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackages
Onetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
14.ClassifiedasAssetsHeldforSale
TheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowing
conditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.
15.Long-termEquityInvestments
(1)Judgmentstandardofjointcontrolandsignificantinfluences
Jointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)Recognitionforinitialinvestmentcost
Theinitialinvestmentcostofthelong-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-termequityinvestmentobtainedbyothermeans
Theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.
Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)Aninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethod
WheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)Aninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethod
WheretheCompanyhold,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-termequityinvestmentshallberecordedintoowners’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.Fortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforethe
Companyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
16.InvestmentRealEstateMeasurementmodeofinvestmentrealestate:
MeasurementofcostmethodDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.
Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
17.FixedAssets
(1)RecognitionConditions
Fixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
Categoryoffixedassets | Method | Usefullife | Annualdeprecation |
Housingandbuilding | Averagemethodofusefullife | 20-40 | 2.50%-5% |
Machineryequipment | Averagemethodofusefullife | 6-15 | 6.67%-16.67% |
Transportationequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
Otherequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLease
TheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
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
18.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
19.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)TheperiodofcapitalizationofborrowingcostsTheborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesandinventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.The
capitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
20.IntangibleAssets
(1)PricingMethod,ServiceLife,andImpairmentTest
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.
Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.
Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)Amortizationmethodandtermofintangibleassets
Asfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.
Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.
TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)AccountingPolicesofInternalR&DExpenses
Theinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.
TheCompanycollectstheexpensesofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpendituresforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.
21.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,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.
Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
22.AmortizationMethodofLong-termDeferredExpenses
Long-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
23.Payroll
(1)AccountingTreatmentofShort-termCompensation
Short-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.
24.EstimatedLiabilities
(1)CriteriaofestimatedliabilitiesOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)Measurementofestimatedliabilities
TheCompanyshallmeasuretheestimateddebtsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.
TheCompanyshallcheckthebookvalueoftheestimateddebtsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
25.RevenueHastheCompanyimplementedthenewstandardsgoverningrevenues
□Yes√No
(1)Recognitionofrevenuefromsaleofgoods:therevenuefromsellingshallberecognizedbythefollowingconditions:ThesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheCompany;theCompanyretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliable
way;therelevantrevenueandcostsofsellinggoodscanbemeasuredinareliableway.Theamountoftherevenuefromsellingshallascertaintherevenueincurredbysellinggoodsinaccordancewiththereceivedorreceivablepricestipulatedinthecontractoragreementsignedbetweentheenterpriseandthebuyer,unlessthereceivedorreceivableamountasstipulatedinthecontractoragreementisunfair.
(2)Recognitionofrevenuefromprovidinglaborservices:Whenthetotalrevenueandcostsfromprovidinglaborcanbemeasuredinareliableway;therelevanteconomicbenefitsarelikelytoflowintotheenterprise;thescheduleofcompletionunderthetransactioncanbemeasuredinareliableway,therevenuefromprovidinglaborshallberecognized.IftheCompanycanreliablyestimatetheoutcomeofatransactionconcerningthelaborservicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthepercentage-of-completionmethodonthedateofthebalancesheet,otherwisetherevenuefromtheprovidingoflaborservicesshallberecognizedinaccordancewiththeamountofthecostoflaborservicesincurredandexpectedtobecompensated.TheCompanyrecognizedthecompletionprocessofthetransactionconcerningthelaborservicesaccordingtotheproportionoftheoccurredcostoftheestimatedtotalcost.Thetotalamountoftherevenuefromprovidingservicesshouldberecognizedaccordingtothecontractpricereceivedorreceivablefromtheacceptingofthelaborservicesortheagreementpriceexceptforthoseunfairprices.
(3)Recognitionoftherevenuefromtransferringuserightsofassets:Whentherelevanteconomicbenefitsarelikelytoflowintotheenterprisesandtheamountofrevenuescanbemeasuredinareliableway,therevenuefromabalienatingtherighttouseassetsshallberecognized.Theamountofinterestrevenueshouldbemeasuredandconfirmedinaccordancewiththelengthoftimeforwhichtheenterprise'scashisusedbyothersandtheactualinterestrate;theamountofroyaltyrevenueshouldbemeasuredandconfirmedinaccordancewiththeperiodandmethodofchargingasstipulatedintherelevantcontractoragreement;asfortherentalrevenue:theamountoftherentalrevenuefromtheoperationleaseshouldberecognizedaccordingtothestraight-linemethodduringeachperiodoftheleasetermoraccruedintothecurrentgainsandlossesifrentalactualoccurred.
26.GovernmentSubsidies
(1)Type
Agovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentsubsidiesconsistofthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeaccordingtotherelevantgovernmentdocuments.
Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisoftheCompanyclassifiesthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidies
Thegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentsubsidiesaswellascouldbeacquired.
Ifthegovernmentsubsidiesarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentsubsidiesarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatment
Thegovernmentsubsidiespertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentsubsidiespertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,and
shallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.Forgovernmentsubsidiesthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.
GovernmentsubsidiesrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.
Thegovernmentsubsidiesrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentsubsidiesassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.
27.DeferredIncomeTaxAssetsandLiabilities
(1)Basisofrecognizingthedeferredincometaxassets
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxassetsshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.
TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)Basisofrecognizingthedeferredincometaxliabilities
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxliabilitiesshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
28.Lease
(1)AccountingTreatmentofOperatingLease
Lesseeinanoperatingleaseshalltreattheleasepaymentunderanoperatingleaseasarelevantassetcostorthecurrentprofitorlossonastraight-linebasisovertheleaseterm.Theinitialdirectcostsincurredshallberecognizedasthecurrentprofitorloss;Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.
Lessorsinanoperatingleaseshallberecognizedasthecurrentprofitorlossonastraight-linebasisovertheleaseterm;Initialdirectcostsincurredbylessorsshallberecognizedasthecurrentprofitorloss;theinitialdirectexpensesoccurshouldbedirectlyincludedinthecurrentgainsandlossesexceptforthosewithlargeramountand
becapitalizedaswellasbeincludedinthegainsandlossesbystages.Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.
(2)AccountingTreatmentsofFinancialLease
WhentheCompanyasthelessee,Ontheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingchargesandtheoccurredinitialdirectexpenses,shouldberecordedintheleaseassetsvalue.Duringeachleaseperiod,shouldrecognizethecurrentfinancingexpensesbyadoptingtheactualinterestrate.
WhentheCompanyastheleasorandonthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Duringeachleaseperiod,shouldrecognizethecurrentfinancingrevenuesadoptingtheactualinterestrate.
29.OtherSignificantAccountingPoliciesandEstimates
(1)Operationtermination
OperationterminationreferstothecomposepartthatmeetwithoneofthefollowingconditionswhichhadbeendisposedbytheCompanyorbeclassifiedtoheld-to-soldaswellascouldbeindividuallydistinguishedinoperatingandcompilingthefinancialstatement:
1)Thecomposepartrepresentsanindividualmainbusinessoramainoperationarea;
2)Thecomposepartisapartintendstodisposeandplananindividualmainbusinessoramainoperationarea;
3)Thecomposepartisasubsidiarywhichbeacquiredonlyforresold.
(2)Hedgingaccounting
Theterm“hedging”referstooneormorehedginginstrumentswhicharedesignatedbyanenterpriseforavoidingtherisksofforeignexchange,interestrate,commodityprice,stockprice,creditandetc.,andwhichisexpectedtomakethechangesinfairvalueorcashflowofhedginginstrument(s)tooffsetallorpartofthechangesinthefairvalueorcashflowofthehedgeditem.
Theterm“hedginginstrument”shallrefertoaderivativeinstrumentwhichisdesignatedbyanenterpriseforhedgingandbywhichitisexpectedthatchangesinitsfairvalueorcashflowcanoffsetthechangesinfairvalueorcashflowofthehedgeditem.Forahedgingofforeignexchangerisk,anon-derivativefinancialassetornon-derivativefinancialliabilitymaybeusedasahedginginstrument.
The“hedgeditem”shallrefertothefollowingitemswhichmakeanenterprisefacedtochangesinfairvalueorcashflowandaredesignatedasthehedgedobjectives.
Thehedgingshouldbeexecutedbythehedgingaccountingmethodswhensatisfyingthefollowingconditionsatthesametime:
1)Atthecommencementofthehedging,theenterpriseshallspecifythehedgingrelationshipformally(namelytherelationshipbetweenthehedginginstrumentandthehedgeditem)andprepareaformalwrittendocumentonthehedgingrelationship,riskmanagementobjectivesandthestrategiesofhedging.
2)Thehedgingexpectationishighlyefficientandmeetstheriskmanagementstrategy,whichisconfirmedforthehedgingrelationshipbyenterpriseattheverybeginning.
3)Foracashflowhedgingofforecasttransaction,theforecasttransactionshallbelikelytooccurandshallmaketheenterprisefacedtotheriskofchangesincashflow,whichwillultimatelyaffecttheprofitsandlosses.
4)Theeffectivenessofhedgingcanbereliablymeasured.
5)Thehedgingishighlyeffectiveinaccountingperiodinwhichthehedgingrelationshipisspecified.
30.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
TheNoticeonRevisingandIssuingtheFormatsof2019FinancialStatementsforGeneralEnterprises(CK[2019]No.6)issuedbytheMinistryofFinanceon30April2019requiresthecompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsbutnotthenewstandardsgoverningrevenueandleaseorcompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsandrevenuebutnotthenewstandardsgoverningleasetoadjustitemsoffinancialstatementsinlinewithrequirementsinAppendix1andAppendix2ofthisNotice. | On27August2019,theCompanyheldthe20thMeetingofthe8thBoardofDirectorsandthe16thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesofSomeAccountingPolicies | Referto(1)ofothernotesfordetails |
TheCompanystartstoimplementtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,whichrevisedandissuedbytheMinistryofFinanceinMarch2017andhereinaftercollectivelyreferredtoasnewstandardsgoverningfinancialinstrumentssince1January2019whichstipulatethatthecompanyshallclassifyandmeasurefinancialinstrumentsinaccordancewithregulationsontheexecutiondate,whenthedataofcomparativefinancialstatementsofprioryearsdonotcomplywiththenewstandards,noadjustmentismadebytheCompany. | On9April2019,theCompanyheldthe17thMeetingofthe8thBoardofDirectorsand13thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesinSomeAccountingPolicies | Referto(2)ofothernotesfordetails |
Othernotes:
(1)InfluenceofChangesinFormatsofFinancialstatementsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
31December2018 | 1January2019 | ||
Notesreceivableandaccountsreceivable | 874,229,941.58 | Notesreceivable | 495,370,782.47 |
Accountsreceivable | 378,859,159.11 | ||
Notespayableandaccountspayable | 1,030,130,275.77 | Notespayable | 438,375,400.00 |
Accountspayable | 591,754,875.77 |
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
31December2018 | 1January2019 | ||
Notesreceivableandaccountsreceivable | 790,877,079.72 | Notesreceivable | 490,519,795.91 |
Accountsreceivable | 300,357,283.81 | ||
Notespayableandaccountspayable | 987,550,797.44 | Notespayable | 425,995,400.00 |
Accountspayable | 561,555,397.44 |
(2)InfluenceofExecutionofNewStandardsGoverningFinancialInstrumentsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
Item | 31December2018 | Affectedamount | 1January2019 | |
Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
Othercurrentassets | 34,357,608.97 | -8,253,873.41 | 26,103,735.56 | |
Held-for-tradingfinancialassets | 8,253,873.41 | 8,253,873.41 | ||
Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | ||
Investmentinotherequityinstruments | 472,150,000.00 | 1,210,000.00 | 470,940,000.00 | |
Othernon-currentfinancialassets | 27,911,369.49 | 27,911,369.49 | ||
Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 |
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
Item | 31December2018 | Affectedamount | 1January2019 | |
Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | ||
Investmentinotherequityinstruments | 471,350,000.00 | 410,000.00 | 470,940,000.00 | |
Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 |
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeases
√Applicable□NotapplicableConsolidatedBalanceSheet
Unit:RMB
Item | 31December2018 | 1January2019 | Adjustment |
Currentassets: | |||
Monetaryassets | 800,960,036.69 | 800,960,036.69 | |
Settlementreserve | |||
Interbankloansgranted | |||
Held-for-tradingfinancialassets | 8,253,873.41 | 8,253,873.41 | |
Financialassetsatfairvaluethroughprofitorloss | |||
Derivativefinancialassets | |||
Notesreceivable | 495,370,782.47 | 495,370,782.47 | |
Accountsreceivable | 378,859,159.11 | 378,859,159.11 | |
Accountsreceivablefinancing | |||
Prepayments | 11,352,297.10 | 11,352,297.10 | |
Premiumsreceivable | |||
Reinsurancereceivables | |||
Receivablereinsurancecontractreserve | |||
Otherreceivables | 9,244,584.42 | 9,244,584.42 | |
Including:Interestreceivable | |||
Dividendsreceivable | |||
Financialassetspurchasedunderresaleagreements | |||
Inventories | 557,953,891.70 | 557,953,891.70 | |
Contractualassets | |||
Assetsclassifiedasheldforsale | |||
Currentportionofnon-current |
assets | |||
Othercurrentassets | 34,357,608.97 | 26,103,735.56 | -8,253,873.41 |
Totalcurrentassets | 2,288,098,360.46 | 2,288,098,360.46 | |
Non-currentassets: | |||
Loansandadvancestocustomers | |||
Investmentsindebtobligations | |||
Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | |
Investmentsinotherdebtobligations | |||
Held-to-maturityinvestments | |||
Long-termreceivables | |||
Long-termequityinvestments | |||
Investmentsinotherequityinstruments | 470,940,000.00 | 470,940,000.00 | |
Othernon-currentfinancialassets | 27,911,369.49 | 27,911,369.49 | |
Investmentproperty | 50,656,007.63 | 50,656,007.63 | |
Fixedassets | 511,250,371.37 | 511,250,371.37 | |
Constructioninprogress | 89,090,384.71 | 89,090,384.71 | |
Productivelivingassets | |||
Oilandgasassets | |||
Right-of-useassets | |||
Intangibleassets | 103,092,879.38 | 103,092,879.38 | |
R&Dexpense | |||
Goodwill | |||
Long-termprepaidexpense | |||
Deferredincometaxassets | 979,822.71 | 979,822.71 | |
Othernon-currentassets | |||
Totalnon-currentassets | 1,253,920,835.29 | 1,253,920,835.29 | |
Totalassets | 3,542,019,195.75 | 3,542,019,195.75 | |
Currentliabilities: | |||
Short-termborrowings | 27,000,000.00 | 27,000,000.00 | |
Borrowingsfromcentralbank | |||
Interbankloansobtained | |||
Held-for-tradingfinancialliabilities |
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notespayable | 438,375,400.00 | 438,375,400.00 |
Accountspayable | 591,754,875.77 | 591,754,875.77 |
Advancesfromcustomers | 34,500,232.97 | 34,500,232.97 |
Financialassetssoldunderrepurchaseagreements | ||
Customerdepositsandinterbankdeposits | ||
Payablesforactingtradingofsecurities | ||
Payablesforunderwritingofsecurities | ||
Payrollpayable | 50,500,592.99 | 50,500,592.99 |
Taxespayable | 7,066,085.89 | 7,066,085.89 |
Otherpayables | 199,412,250.90 | 199,412,250.90 |
Including:Interestpayable | ||
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Handlingchargesandcommissionspayable | ||
Reinsurancepayables | ||
Contractualliabilities | ||
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
Othercurrentliabilities | 2,082,985.18 | 2,082,985.18 |
Totalcurrentliabilities | 1,369,192,423.70 | 1,369,192,423.70 |
Non-currentliabilities: | ||
Insurancecontractreserve | ||
Long-termborrowings | 2,000,000.00 | 2,000,000.00 |
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities |
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 59,928,484.84 |
Deferredincometaxliabilities | 47,971,780.36 | 47,971,780.36 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 109,900,265.20 | 109,900,265.20 |
Totalliabilities | 1,479,092,688.90 | 1,479,092,688.90 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 164,328,665.43 | 164,328,665.43 |
Less:Treasurystock | ||
Othercomprehensiveincome | 264,405,675.00 | 264,405,675.00 |
Specificreserve | 15,182,958.83 | 15,182,958.83 |
Surplusreserves | 320,133,050.15 | 320,133,050.15 |
Generalreserve | ||
Retainedearnings | 717,883,351.33 | 717,883,351.33 |
TotalequityattributabletoownersoftheCompanyastheparent | 2,043,308,026.74 | 2,043,308,026.74 |
Non-controllinginterests | 19,618,480.11 | 19,618,480.11 |
Totalowners’equity | 2,062,926,506.85 | 2,062,926,506.85 |
Totalliabilitiesandowners’equity | 3,542,019,195.75 | 3,542,019,195.75 |
Noteforadjustment
In2017,theMinistryofFinancerevisedtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,andrequiredcompanieslisteddomesticallytoimplementsince1January2019.Inaccordancewiththestandards,forfinancialinstrumentsnotderecognizedyetontheexecutiondate,whenthereisinconsistencebetweentheoriginalrecognition&measurementandtherequirementsoftherevisedstandards,retroactiveadjustmentisneeded.Fortheinconsistencebetweenthepriorcomparativefinancialstatementdataandtherequirementsoftherevisedstandards,noadjustmentisneeded.TheCompanystartstoimplementthenewstandardsgoverningfinancialinstrumentssince1January2019.Financialassetsoriginallyrecordedintoavailable-for-salefinancialassetsshallbeclassifiedintofinancialassets
atfairvaluethroughothercomprehensiveincomeandpresentedasinvestmentinotherequityinstrumentsinfinancialstatements.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item | 31December2018 | 1January2019 | Adjustment |
Currentassets: | |||
Monetaryassets | 759,404,219.72 | 759,404,219.72 | |
Held-for-tradingfinancialassets | |||
Financialassetsatfairvaluethroughprofitorloss | |||
Derivativefinancialassets | |||
Notesreceivable | 490,519,795.91 | 490,519,795.91 | |
Accountsreceivable | 300,357,283.81 | 300,357,283.81 | |
Accountsreceivablefinancing | |||
Prepayments | 4,768,038.11 | 4,768,038.11 | |
Otherreceivables | 21,681,331.85 | 21,681,331.85 | |
Including:Interestreceivable | |||
Dividendsreceivable | |||
Inventories | 437,423,195.46 | 437,423,195.46 | |
Contractualassets | |||
Assetsclassifiedasheldforsale | |||
Currentportionofnon-currentassets | |||
Othercurrentassets | 23,099,858.67 | 23,099,858.67 | |
Totalcurrentassets | 2,037,253,723.53 | 2,037,253,723.53 | |
Non-currentassets: | |||
Investmentsindebtobligations | |||
Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | |
Investmentsinotherdebtobligations | |||
Held-to-maturityinvestments | |||
Long-termreceivables | |||
Long-termequityinvestments | 241,752,730.03 | 241,752,730.03 | |
Investmentsinotherequityinstruments | 470,940,000.00 | 470,940,000.00 |
Othernon-currentfinancialassets | ||
Investmentproperty | 50,656,007.63 | 50,656,007.63 |
Fixedassets | 413,186,680.19 | 413,186,680.19 |
Constructioninprogress | 87,007,215.91 | 87,007,215.91 |
Productivelivingassets | ||
Oilandgasassets | ||
Right-of-useassets | ||
Intangibleassets | 72,184,608.63 | 72,184,608.63 |
R&Dexpense | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 930,641.19 | 930,641.19 |
Othernon-currentassets | ||
Totalnon-currentassets | 1,336,657,883.58 | 1,336,657,883.58 |
Totalassets | 3,373,911,607.11 | 3,373,911,607.11 |
Currentliabilities: | ||
Short-termborrowings | 10,000,000.00 | 10,000,000.00 |
Held-for-tradingfinancialliabilities | ||
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notespayable | 425,995,400.00 | 425,995,400.00 |
Accountspayable | 561,555,397.44 | 561,555,397.44 |
Advancesfromcustomers | 32,072,387.55 | 32,072,387.55 |
Contractualliabilities | ||
Payrollpayable | 43,597,759.22 | 43,597,759.22 |
Taxespayable | 2,443,767.89 | 2,443,767.89 |
Otherpayables | 185,022,961.56 | 185,022,961.56 |
Including:Interestpayable | ||
Dividendspayable | 3,243,179.97 | 3,243,179.97 |
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
Othercurrentliabilities | ||
Totalcurrentliabilities | 1,279,187,673.66 | 1,279,187,673.66 |
Non-currentliabilities: | ||
Long-termborrowings | ||
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 59,928,484.84 |
Deferredincometaxliabilities | 46,659,825.00 | 46,659,825.00 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 106,588,309.84 | 106,588,309.84 |
Totalliabilities | 1,385,775,983.50 | 1,385,775,983.50 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 183,071,147.70 | 183,071,147.70 |
Less:Treasurystock | ||
Othercomprehensiveincome | 264,405,675.00 | 264,405,675.00 |
Specificreserve | 15,182,958.83 | 15,182,958.83 |
Surplusreserves | 320,133,050.15 | 320,133,050.15 |
Retainedearnings | 643,968,465.93 | 643,968,465.93 |
Totalowners’equity | 1,988,135,623.61 | 1,988,135,623.61 |
Totalliabilitiesandowners’equity | 3,373,911,607.11 | 3,373,911,607.11 |
Noteforadjustment
In2017,theMinistryofFinancerevisedtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,andrequired
companieslisteddomesticallytoimplementsince1January2019.Inaccordancewiththestandards,forfinancialinstrumentsnotderecognizedyetontheexecutiondate,whenthereisinconsistencebetweentheoriginalrecognition&measurementandtherequirementsoftherevisedstandards,retroactiveadjustmentisneeded.Fortheinconsistencebetweenthepriorcomparativefinancialstatementdataandtherequirementsoftherevisedstandards,noadjustmentisneeded.TheCompanystartstoimplementthenewstandardsgoverningfinancialinstrumentssince1January2019.Financialassetsoriginallyrecordedintoavailable-for-salefinancialassetsshallbeclassifiedintofinancialassetsatfairvaluethroughothercomprehensiveincomeandpresentedasinvestmentinotherequityinstrumentsinfinancialstatements.
(4)RetroactiveAdjustmentstoComparativeDataofPriorYearswhenFirstExecutionofanyNewStandardsGoverningFinancialInstrumentsorLeases
□Applicable√NotapplicableVI.Taxation
1.MainTaxesandTaxRate
Categoryoftaxes | Taxbasis | Taxrate |
VAT | Payabletosalesrevenue | 16%,13%,11%,10%,6% |
Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
Enterpriseincometax | Taxableincome | 25%or15% |
Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
Name | Incometaxrate |
ChangchaiCo.,Ltd. | 15% |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
ChangzhouHoushengInvestmentCo.,Ltd. | 5% |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25% |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 25% |
JiangsuChangchaiMachineryCo.,Ltd. | 25% |
2.TaxPreference
In2018,theCompanyhasbeenidentifiedasHigh-techEnterprises,therefore,itenjoys15-percentpreferentialrateforcorporateincometax;theCompany’scontrollingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2020inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopment.Thecontrollingsubsidiary-ChangzhouHoushengInvestmentCo.,Ltd.shallpaythecorporateincometaxattaxrate5%from1January2019to31December2021inaccordancewiththeNoticeoftheImplementationofInclusiveTaxReductionPolicytoSmallandMicroEnterprisesbyMinistryofFinanceandtheNationalAdministrationoftheTaxation.VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Cashonhand | 153,975.35 | 441,363.70 |
Bankdeposits | 543,923,045.33 | 684,620,907.41 |
Othermonetaryassets | 93,136,985.38 | 115,897,765.58 |
Total | 637,214,006.06 | 800,960,036.69 |
Ofwhich:Totalamountdepositedoverseas | ||
Totalamountofrestrictioninusebyguaranteed,pledgedorfrozen | 92,629,261.89 | 113,880,397.10 |
Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB92,629,261.89,ofwhichRMB90,770,574.15wasthecashdepositforbankacceptancebills,RMB986,662.74wascashdepositforL/C,andRMB872,025.00wascashdepositforenvironment.
2.TradingFinancialAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Financialassetsassignedmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses | 10,000,000.00 | 8,253,873.41 |
Ofwhich:Financialproducts | 10,000,000.00 | 8,253,873.41 |
Total | 10,000,000.00 | 8,253,873.41 |
Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
Item | Endingbalance | Beginningbalance |
Bankacceptancebill | 606,283,023.05 | 495,370,782.47 |
Total | 606,283,023.05 | 495,370,782.47 |
(2)ThereWasNoNotesReceivablePledgedbytheCompanyatthePeriod-end
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
Bankacceptancebill | 366,776,726.29 | |
Total | 366,776,726.29 |
(4)NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
4.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion |
Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 35,534,574.55 | 5.31% | 33,449,794.41 | 94.13% | 2,084,780.14 | 32,020,727.53 | 5.135 | 31,133,291.11 | 97.23% | 887,436.42 |
Ofwhich: | ||||||||||
Accountsreceivablewithsignificantamountforwhichbaddebtprovisionseparatelyaccrued | 30,642,717.62 | 4.58% | 28,557,937.48 | 93.20% | 2,084,780.14 | 28,205,070.58 | 4.52% | 27,317,634.16 | 96.85% | 887,436.42 |
Accountsreceivablewithinsignificantamountforwhichbaddebtprovisionseparatelyaccrued | 4,891,856.93 | 0.73% | 4,891,856.93 | 100.00% | 3,815,656.95 | 0.61% | 3,815,656.95 | 100.00% | ||
Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 633,052,843.24 | 94.69% | 215,841,957.87 | 34.10% | 417,210,885.37 | 591,489,450.66 | 94.87% | 213,517,727.97 | 36.10% | 377,971,722.69 |
Ofwhich: | ||||||||||
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 633,052,843.24 | 94.69% | 215,841,957.87 | 34.10% | 417,210,885.37 | 591,489,450.66 | 94.87% | 213,517,727.97 | 36.10% | 377,971,722.69 |
Total | 668,587,417.79 | 100.00% | 249,291,752.28 | 37.29% | 419,295,665.51 | 623,510,178.19 | 100.00% | 244,651,019.08 | 39.24% | 378,859,159.11 |
Accountreceivableswithdrawnbaddebtprovisionseparatelywithsignificantamountintheperiodend:
Unit:RMB
Name | Endingbalance | |||
Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonofwithdrawal | |
Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00 | Expectedtodifficultlyrecover |
Customer2 | 1,902,326.58 | 1,902,326.58 | 100.00 | Difficulttorecover |
Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00 | Difficulttorecover |
Customer4 | 2,445,367.85 | 2,177,128.33 | 89.03 | Expectedtodifficultlyrecover |
Customer5 | 3,633,081.23 | 1,816,540.61 | 50.00 | Expectedtodifficultlyrecover |
Customer6 | 3,279,100.00 | 3,279,100.00 | 100.00 | Expectedtodifficultlyrecover |
Customer7 | 2,068,377.01 | 2,068,377.01 | 100.00 | Expectedtodifficultlyrecover |
Customer8 | 5,359,381.00 | 5,359,381.00 | 100.00 | Difficulttorecover |
Customer9 | 2,584,805.83 | 2,584,805.83 | 100.00 | Difficulttorecover |
Customer10 | 1,684,504.84 | 1,684,504.84 | 100.00 | Difficulttorecover |
Total | 30,642,717.62 | 28,557,937.48 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
Aging | Endingbalance | ||
Accountsreceivable | Baddebtprovision | Withdrawalproportion | |
Within1year | 399,534,844.49 | 7,990,697.36 | 2.00% |
1to2years | 17,871,570.68 | 893,578.54 | 5.00% |
2to3years | 7,948,315.22 | 1,192,247.28 | 15.00% |
3to4years | 2,241,585.32 | 672,475.60 | 30.00% |
4to5years | 908,921.11 | 545,352.67 | 60.00% |
Over5years | 204,547,606.42 | 204,547,606.42 | 100.00% |
Total | 633,052,843.24 | 215,841,957.87 | -- |
Notesofthebasisofdeterminingthegroup:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsincurredactually,amongwhichtheaccountsincurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcredit
loss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Carryingamount |
Within1year(including1year) | 400,301,753.19 |
1to2years | 19,983,341.14 |
2to3years | 11,370,168.43 |
Over3years | 236,932,155.03 |
3to4years | 4,987,170.10 |
4to5years | 1,346,662.43 |
Over5years | 230,598,322.50 |
Total | 668,587,417.79 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
Withdrawal | Reversalorrecovery | Write-off | |||
Baddebtprovisionwithdrawnseparately | 31,133,291.11 | 3,347,105.92 | 1,030,602.62 | 33,449,794.41 | |
Baddebtprovisionwithdrawnbygroup | 213,517,727.97 | 3,598,115.60 | 1,273,885.70 | 215,841,957.87 | |
Total | 244,651,019.08 | 6,945,221.52 | 2,304,488.32 | 249,291,752.28 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)ThereWereNoParticularsoftheActualVerificationofAccountsReceivableduringtheReportingPeriod.
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
Customer1 | 170,103,568.50 | 25.44% | 3,402,071.37 |
Customer2 | 23,896,557.76 | 3.57% | 477,931.16 |
Customer3 | 21,182,519.25 | 3.17% | 423,650.39 |
Customer4 | 21,885,020.77 | 3.27% | 437,700.42 |
Customer5 | 18,470,927.36 | 2.76% | 369,418.55 |
Total | 255,538,593.64 | 38.21% | 5,110,771.87 |
5.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
Aging | Endingbalance | Beginningbalance | ||
Amount | Proportion | Amount | Proportion | |
Within1year | 10,819,576.65 | 83.67 | 9,535,876.40 | 84.01% |
1to2years | 993,030.99 | 7.68 | 437,529.70 | 3.85% |
2to3years | 115,335.90 | 0.89 | 57,536.24 | 0.51% |
Over3years | 1,002,602.62 | 7.76 | 1,321,354.76 | 11.63% |
Total | 12,930,546.16 | -- | 11,352,297.10 | -- |
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTarget
Attheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB5,494,349.33accountingfor42.49%ofthetotalendingbalanceofprepayments.
6.OtherReceivables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Interestreceivable | 0.00 | 0.00 |
Dividendsreceivable | 0.00 | 0.00 |
Otherreceivables | 10,597,073.18 | 9,244,584.42 |
Total | 10,597,073.18 | 9,244,584.42 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
Item | Endingcarryingamount | Beginningcarryingamount |
Marginandcashpledge | 7,758.60 | 4,200.00 |
Intercoursefunds | 25,293,372.77 | 25,451,250.34 |
Pettycashandborrowingsbyemployees | 3,203,041.67 | 1,232,153.09 |
Other | 15,374,916.41 | 15,546,601.57 |
Total | 43,879,089.45 | 42,234,205.00 |
2)WithdrawalofBadDebtProvision
□Applicable□Notapplicable
Unit:RMB
Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
Balanceof1January2019 | 32,989,620.58 | 32,989,620.58 | ||
Balanceof1January2019intheCurrentPeriod | —— | —— | —— | —— |
--TransfertoSecondstage | ||||
--TransfertoThirdstage | ||||
--ReversetoSecondstage | ||||
--ReversetoFirststage |
WithdrawaloftheCurrentPeriod | 296,359.94 | 296,359.94 | |
ReversaloftheCurrentPeriod | 3,964.25 | 3,964.25 | |
Write-offsoftheCurrentPeriod | |||
VerificationoftheCurrentPeriod | |||
Otherchanges | |||
Balanceof31December2019 | 33,282,016.27 | 33,282,016.27 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Carryingamount |
Within1year(including1year) | 7,635,227.47 |
1to2years | 1,651,595.88 |
2to3years | 1,531,378.71 |
Over3years | 33,060,887.39 |
3to4years | 231,294.13 |
4to5years | 96,930.77 |
Over5years | 32,732,662.49 |
Total | 43,879,089.45 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance |
Withdrawal | Reversalorrecovery | Write-off | Other |
Baddebtprovisionwithdrawnseparately | 5,011,963.16 | 30,485.42 | 5,042,448.58 | ||
Baddebtprovisionwithdrawnbygroup | 27,977,657.42 | 265,874.52 | 3,964.25 | 28,239,567.69 | |
Total | 32,989,620.58 | 296,359.94 | 3,964.25 | 33,282,016.27 |
4)ThereWasNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
5)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
ChangzhouChangjiangCastingMaterialsCo.,Ltd. | Intercoursefunds | 5,000,000.00 | Within1year | 11.39% | 100,000.00 |
ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 6.70% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 6.50% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 3.71% | 1,626,483.25 |
ChangzhouGroupSettlementCentre | Intercoursefunds | 1,140,722.16 | Over5years | 2.60% | 1,140,722.16 |
Total | -- | 13,560,393.43 | -- | 30.90% | 8,660,393.43 |
7.InventoriesWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
(1)CategoryofInventory
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
Rawmaterials | 125,757,856.89 | 6,539,831.39 | 119,218,025.50 | 134,454,498.93 | 5,845,504.24 | 128,608,994.69 |
Materialsprocessedoncommission | 12,444,566.41 | 183,111.28 | 12,261,455.13 | 13,330,233.29 | 993,300.18 | 12,336,933.11 |
Goodsinprocess | 142,399,981.66 | 26,985,350.14 | 115,414,631.52 | 166,798,553.34 | 24,187,100.54 | 142,611,452.80 |
Finishedgoods | 239,694,354.77 | 15,404,153.29 | 224,290,201.48 | 288,979,920.46 | 16,035,855.03 | 272,944,065.43 |
Lowpricedandeasilywornarticles | 3,373,235.80 | 1,205,538.85 | 2,167,696.95 | 3,632,711.20 | 2,180,265.53 | 1,452,445.67 |
Total | 523,669,995.53 | 50,317,984.95 | 473,352,010.58 | 607,195,917.22 | 49,242,025.52 | 557,953,891.70 |
(2)FallingPriceReservesofInventories
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
Withdrawal | Other | Reversalorwrite-off | Other | |||
Rawmaterials | 5,845,504.24 | 707,004.81 | 12,677.66 | 6,539,831.39 | ||
Materialsprocessedoncommission | 993,300.18 | 810,188.90 | 183,111.28 | |||
Goodsinprocess | 24,187,100.54 | 26,985,350.14 | 24,187,100.54 | 26,985,350.14 |
Finishedgoods | 16,035,855.03 | 15,194,526.31 | 15,826,228.05 | 15,404,153.29 | ||
Lowpricedandeasilywornarticles | 2,180,265.53 | 974,726.68 | 1,205,538.85 | |||
Total | 49,242,025.52 | 42,886,881.26 | 41,810,921.83 | 50,317,984.95 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories
(4)ThereWasNoCompletedbutUnsettledAssetsGeneratedfromConstructionContractsatthePeriod-end
8.OtherCurrentAssetsWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
Item | Endingbalance | Beginningbalance |
TheVATtaxcredits | 6,014,692.92 | 25,962,369.29 |
Prepaidexpense | 98,856.26 | 86,761.81 |
Other | 240,371.15 | 54,604.46 |
Total | 6,353,920.33 | 26,103,735.56 |
9.Creditor’sRightsInvestment
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
Entrustedloan | 4,000,000.00 | 4,000,000.00 | ||||
Total | 4,000,000.00 | 4,000,000.00 |
Withdrawalofimpairmentprovision
Unit:RMB
Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) |
Balanceof1January2019 | 4,000,000.00 | 4,000,000.00 | ||
Balanceof1January2019intheCurrentPeriod | —— | —— | —— | —— |
--TransfertoSecondstage | ||||
--TransfertoThirdstage | ||||
--ReversetoSecondstage | ||||
--ReversetoFirststage | ||||
WithdrawaloftheCurrentPeriod | ||||
ReversaloftheCurrentPeriod | 4,000,000.00 | 4,000,000.00 | ||
Write-offsoftheCurrentPeriod | ||||
VerificationoftheCurrentPeriod | ||||
Otherchanges | ||||
Balanceof31December2019 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√Notapplicable
10.Long-termEquityInvestment
Unit:RMB
Investees | Beginningbalance(carryingvalue) | ChangesintheReportingPeriod | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
II.Associatedenterprises |
BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 0 | 0 | 44,182.50 | |
Subtotal | 0 | 0 | 44,182.50 | |
Total | 0 | 0 | 44,182.50 |
11.OtherEquityInstrumentInvestment
Unit:RMB
Item | Endingbalance | Beginningbalance |
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 100,000,000.00 | 100,000,000.00 |
Otherequityinstrumentinvestmentmeasuredbyfairvalue | 432,886,000.00 | 370,940,000.00 |
Total | 532,886,000.00 | 470,940,000.00 |
Disclosureofnon-tradingequityinstrumentinvestmentinthereportingperiodbyitem:
Unit:RMB
Item | Recognizeddividendsincome | Accumulativegains | Accumulativelosses | Amountofothercompressiveincometransferredtoretainedearnings | Reasonforassigningtomeasureatfairvalueandchangesrecordedintoothercomprehensiveincome | Reasonofothercomprehensiveincometransferredtoretainedearnings |
FotonMotorCo.,Ltd. | 39,015,000.00 | Non-tradingequityinvestment | ||||
BankofJiangsu | 6,069,000.00 | 22,860,000.00 | Non-tradingequityinvestment |
JiangsuExpresswayCo.,Ltd. | 71,000.00 | Non-tradingequityinvestment | ||
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Non-tradingequityinvestment | |||
Total | 6,069,000.00 | 61,946,000.00 |
Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
ThestocksoflistedcompaniessuchasFotonMotorCo.,Ltd.heldbytheCompanybelongtonon-tradingequity
investment.Therefore,theinvestmentwasdividedintothefinancialassetsassignedmeasuredbyfairvalueandthechangesbeincludedintheothercomprehensiveincome.
12.OtherNon-currentFinancialAssets
Unit:RMB
Othernotes:
Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
13.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
Item | Housesandbuildings | Total |
Item | Endingbalance | Beginningbalance |
JiangsuLianceElectromechanicalTechnologyCo.,Ltd. | 7,200,000.00 | 7,200,000.00 |
KailongHighTechnologyCo.,Ltd. | 20,001,268.00 | 20,001,268.00 |
GuizhouWarmenPharmaceuticalCo,Ltd. | 200,104.80 | 200,104.80 |
GuizhouAndaEnergyTechnologyCo.,Ltd. | 195,297.49 | 195,297.49 |
HenanLantianGasCo.,Ltd. | 160,744.76 | 160,744.76 |
HebeiSongheRecyclingResourcesCo.,Ltd. | 104,699.44 | 104,699.44 |
AnhuiHofoElectromechanicalCo.,Ltd. | 89,987.14 | 89,987.14 |
JiangsuHoushengNewEnergyTechnologyCo.,Ltd. | 50,000,000.00 | |
Total | 77,952,101.63 | 27,952,101.63 |
I.Originalcarryingvalue | ||
1.Beginningbalance | 87,632,571.14 | 87,632,571.14 |
2.Increasedamountoftheperiod | ||
(1)Outsourcing | ||
(2)Transferfrominventories/fixedassets/constructioninprogress | ||
(3)Enterprisecombinationincrease | ||
3.Decreasedamountoftheperiod | ||
(1)Disposal | ||
(2)Othertransfer | ||
4.Endingbalance | 87,632,571.14 | 87,632,571.14 |
II.Accumulativedepreciationandaccumulativeamortization | ||
1.Beginningbalance | 36,976,563.51 | 36,976,563.51 |
2.Increasedamountoftheperiod | 2,208,340.80 | 2,208,340.80 |
(1)Withdrawaloramortization | 2,208,340.80 | 2,208,340.80 |
3.Decreasedamountoftheperiod | ||
(1)Disposal | ||
(2)Othertransfer | ||
4.Endingbalance | 39,184,904.31 | 39,184,904.31 |
III.Depreciationreserves | ||
1.Beginningbalance | ||
2.Increasedamountoftheperiod | ||
(1)Withdrawal | ||
3.Decreasedamountoftheperiod | ||
(1)Disposal | ||
(2)Othertransfer | ||
4.Endingbalance | ||
IV.Carryingvalue | ||
1.Endingcarryingvalue | 48,447,666.83 | 48,447,666.83 |
2.Beginningcarryingvalue | 50,656,007.63 | 50,656,007.63 |
14.FixedAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Fixedassets | 457,582,514.13 | 511,250,371.37 |
Disposaloffixedassets | 0.00 | 0.00 |
Total | 457,582,514.13 | 511,250,371.37 |
(1)ListofFixedAssets
Unit:RMB
Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
I.Originalcarryingvalue | |||||
1.Beginningbalance | 447,076,373.55 | 936,110,914.94 | 18,083,828.53 | 44,422,389.46 | 1,445,693,506.48 |
2.Increasedamountoftheperiod | 2,093,189.79 | 27,049,532.05 | 1,361,109.97 | 30,503,831.81 | |
(1)Purchase | 1,401,958.84 | 2,546,176.53 | 948,074.27 | 4,896,209.64 | |
(2)Transferfromconstructioninprogress | 691,230.95 | 24,503,355.52 | 413,035.70 | 25,607,622.17 | |
(3)Enterprisecombinationincrease | |||||
3.Decreasedamountoftheperiod | 480,902.12 | 7,022,206.81 | 800,658.99 | 3,574,856.25 | 11,878,624.17 |
(1)Disposalorscrap | 480,902.12 | 7,022,206.81 | 800,658.99 | 3,574,856.25 | 11,878,624.17 |
4.Endingbalance | 448,688,661.22 | 956,138,240.18 | 17,283,169.54 | 42,208,643.18 | 1,464,318,714.12 |
II.Accumulativedepreciation | |||||
1.Beginningbalance | 265,778,832.18 | 619,622,564.64 | 13,341,638.03 | 34,205,985.26 | 932,949,020.11 |
15.ConstructioninProgress
Unit:RMB
Item | Endingbalance | Beginningbalance |
Constructioninprogress | 63,216,445.03 | 59,851,682.79 |
2.Increasedamountoftheperiod | 16,273,258.83 | 61,230,582.50 | 1,287,627.97 | 4,506,366.79 | 83,297,836.09 |
(1)Withdrawal | 16,273,258.83 | 61,230,582.50 | 1,287,627.97 | 4,506,366.79 | 83,297,836.09 |
3.Decreasedamountoftheperiod | 385,508.75 | 6,307,964.63 | 736,947.20 | 3,574,350.63 | 11,004,771.21 |
(1)Disposalorscrap | 385,508.75 | 6,307,964.63 | 736,947.20 | 3,574,350.63 | 11,004,771.21 |
4.Endingbalance | 281,666,582.26 | 674,545,182.51 | 13,892,318.80 | 35,138,001.42 | 1,005,242,084.99 |
III.Depreciationreserves | |||||
1.Beginningbalance | 1,494,115.00 | 1,494,115.00 | |||
2.Increasedamountoftheperiod | |||||
(1)Withdrawal | |||||
3.Decreasedamountoftheperiod | |||||
(1)Disposalorscrap | |||||
4.Endingbalance | 1,494,115.00 | 1,494,115.00 | |||
IV.Carryingvalue | |||||
1.Endingcarryingvalue | 167,022,078.96 | 280,098,942.67 | 3,390,850.74 | 7,070,641.76 | 457,582,514.13 |
2.Beginningcarryingvalue | 181,297,541.37 | 314,994,235.30 | 4,742,190.50 | 10,216,404.20 | 511,250,371.37 |
Engineeringmaterials | 28,141,711.21 | 29,238,701.92 |
Total | 91,358,156.24 | 89,090,384.71 |
(1)ListofConstructioninProgress
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Trialproductionworkshopprojecttechnologycenter | 14,349,461.80 | 14,349,461.80 | ||||
Castingrenovationproject | 396,000.00 | 396,000.00 | ||||
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 11,375,531.74 | 11,375,531.74 | 11,371,098.24 | 11,371,098.24 | ||
DieselEngineCylinderBodyFlexibleManufacturingLine | 38,266,788.31 | 38,266,788.31 | 19,061,813.95 | 19,061,813.95 | ||
35KVSubstation | 1,321,959.41 | 1,321,959.41 | 1,321,959.41 | 1,321,959.41 | ||
Oilywaterseparatingequipment | 340,800.00 | 340,800.00 |
Relocationprojectoflightengineandcasting | 1,687,194.64 | 1,687,194.64 | ||||
Equipmenttobeinstalledandpaymentforprojects | 10,224,170.93 | 10,224,170.93 | 13,351,349.39 | 13,351,349.39 | ||
Total | 63,216,445.03 | 63,216,445.03 | 59,851,682.79 | 59,851,682.79 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulativeinvestmentinconstructionstobudget | Jobschedule | Accumulativeamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsintheReportingPeriod | CapitalizationrateofinterestsintheReportingPeriod | Capitalresources |
Trialproductionworkshopprojecttechnologycenter | 22,896,300.00 | 14,349,461.80 | 14,349,461.80 | Uncompleted | Other |
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 79,000,000.00 | 11,371,098.24 | 4,433.50 | 11,375,531.74 | Uncompleted | Other | ||||
DieselEngineCylinderBodyFlexibleManufacturingLine | 116,040,000.00 | 19,061,813.95 | 19,204,974.36 | 38,266,788.31 | Uncompleted | Other | ||||
35KVSubstation | 1,321,959.41 | 1,321,959.41 | Uncompleted | Other | ||||||
Total | 217,936,300.00 | 46,104,333.40 | 19,209,407.86 | 14,349,461.80 | 50,964,279.46 | -- | -- | -- |
(3)EngineeringMaterials
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue |
Engineeringmaterials | 28,141,711.21 | 28,141,711.21 | 29,238,701.92 | 29,238,701.92 | ||
Total | 28,141,711.21 | 28,141,711.21 | 29,238,701.92 | 29,238,701.92 |
16.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
Item | Landuseright | Patentright | Licensefee | Total |
I.Originalcarryingvalue | ||||
1.Beginningbalance | 144,770,507.85 | 11,517,579.94 | 5,488,000.00 | 161,776,087.79 |
2.Increasedamountoftheperiod | 1,433,300.90 | 1,433,300.90 | ||
(1)Purchase | 1,433,300.90 | 1,433,300.90 | ||
(2)InternalR&D | ||||
(3)Businesscombinationincrease | ||||
3.Decreasedamountoftheperiod | 83,888.26 | 83,888.26 | ||
(1)Disposal | 83,888.26 | 83,888.26 | ||
4.Endingbalance | 144,770,507.85 | 12,866,992.58 | 5,488,000.00 | 163,125,500.43 |
II.Accumulatedamortization | ||||
1.Beginningbalance | 48,128,022.51 | 9,549,052.64 | 1,006,133.26 | 58,683,208.41 |
2.Increasedamountoftheperiod | 2,971,978.31 | 1,305,951.75 | 548,799.96 | 4,826,730.02 |
(1)Withdrawal | 2,971,978.31 | 1,305,951.75 | 548,799.96 | 4,826,730.02 |
3.Decreasedamountoftheperiod | 83,888.26 | 83,888.26 | ||
(1)Disposal | 83,888.26 | 83,888.26 | ||
4.Endingbalance | 51,100,000.82 | 10,771,116.13 | 1,554,933.22 | 63,426,050.17 |
III.Depreciationreserves | ||||
1.Beginningbalance | ||||
2.Increasedamountoftheperiod | ||||
(1)Withdrawal | ||||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
4.Endingbalance | ||||
IV.Carryingvalue | ||||
1.Endingcarryingvalue | 93,670,507.03 | 2,095,876.45 | 3,933,066.78 | 99,699,450.26 |
2.Beginningcarryingvalue | 96,642,485.34 | 1,968,527.30 | 4,481,866.74 | 103,092,879.38 |
17.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenSet-off
Unit:RMB
Item | Endingbalance | Beginningbalance | ||
Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
Provisionforimpairmentofassets | 6,682,163.90 | 1,023,856.52 | 6,401,000.68 | 979,822.71 |
Total | 6,682,163.90 | 1,023,856.52 | 6,401,000.68 | 979,822.71 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
Item | Endingbalance | Beginningbalance | ||
Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
Changesinfairvalueofotherequityinstrumentinvestment | 373,011,500.00 | 55,951,725.00 | ||
Changesinfairvalueofavailable-for-salefinancialassets | 311,065,500.00 | 46,659,825.00 | ||
Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 4,524,661.07 | 1,131,165.27 | 5,247,821.44 | 1,311,955.36 |
Total | 377,536,161.07 | 57,082,890.27 | 316,313,321.44 | 47,971,780.36 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
baddebt | 375,416,184.97 | 271,239,638.98 |
fallingpricereservesofinventories | 50,317,984.95 | 49,242,025.52 |
Total | 425,734,169.92 | 320,481,664.50 |
18.OtherNon-currentAssetsWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
Item | Endingbalance | Beginningbalance |
Total | 0.00 | 0.00 |
Therewasnobalanceattheperiod-begin.Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates-(2)InfluenceofExecutionofNewStandardsGoverningFinancialInstruments”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
19.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
Item | Endingbalance | Beginningbalance |
Mortgageloans | 7,000,000.00 | 7,000,000.00 |
Guaranteedloans | 10,000,000.00 | 10,000,000.00 |
Creditloans | 5,000,000.00 | 10,000,000.00 |
Total | 22,000,000.00 | 27,000,000.00 |
(2)ThereWasNoShort-termBorrowingsOverduebutUnpaid.
20.NotesPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Bankacceptancebill | 403,035,000.00 | 438,375,400.00 |
Total | 403,035,000.00 | 438,375,400.00 |
Theamountofnotespayableduebutunpaidattheperiod-endwasRMB0.
21AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Loans | 525,610,256.89 | 591,754,875.77 |
Total | 525,610,256.89 | 591,754,875.77 |
(2)ThereWasNoSignificantAccountsPayableAgingoverOneYear
22.AdvancesfromCustomersWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
(1)ListofAdvancesfromCustomers
Unit:RMB
Item | Endingbalance | Beginningbalance |
Loan | 30,836,615.21 | 34,500,232.97 |
Total | 30,836,615.21 | 34,500,232.97 |
(2)ThereWereNoSignificantAdvancesfromCustomersAgingoverOneYear
23.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
I.Short-termsalary | 50,500,592.99 | 245,933,884.31 | 251,875,461.51 | 44,559,015.79 |
II.Post-employmentbenefit-definedcontributionplans | 34,554,489.90 | 34,554,489.90 | ||
III.Terminationbenefits | 284,193.00 | 284,193.00 | ||
Total | 50,500,592.99 | 280,772,567.21 | 286,714,144.41 | 44,559,015.79 |
(2)ListofShort-termSalary
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Salary,bonus,allowance,subsidy | 41,939,857.83 | 201,033,055.30 | 206,077,959.42 | 36,894,953.71 |
2.Employeewelfare | 89,592.74 | 3,658,998.62 | 3,746,998.62 | 1,592.74 |
3.Socialinsurance | 18,016,605.44 | 18,016,605.44 | ||
Ofwhich:Medicalinsurancepremiums | 14,983,569.28 | 14,983,569.28 | ||
Work-relatedinjuryinsurance | 1,491,692.35 | 1,491,692.35 | ||
Maternityinsurance | 1,541,343.81 | 1,541,343.81 | ||
4.Housingfund | 19,198,174.00 | 19,198,174.00 | ||
5.Laborunionbudgetandemployeeeducationbudget | 8,471,142.42 | 4,027,050.95 | 4,835,724.03 | 7,662,469.34 |
6.Short-termabsencewithsalary | ||||
7.Short-termprofitsharingscheme | ||||
Total | 50,500,52.99 | 245,933,884.31 | 251,875,461.51 | 44,559,015.79 |
(3)ListofDefinedContributionPlans
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Basicpensionbenefits | 33,571,411.49 | 33,571,411.49 | ||
2.Unemploymentinsurance | 983,078.41 | 983,078.41 | ||
Total | 34,554,489.90 | 34,554,489.90 |
24.TaxesPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
VAT | 1,290,060.47 | 876,055.81 |
Corporateincometax | 5,090,781.18 | 3,665,483.92 |
Personalincometax | 367,624.40 | 140,662.05 |
Urbanmaintenanceandconstructiontax | 970,067.92 | 993,210.56 |
Propertytax | 94,257.20 | 94,256.40 |
Landusetax | 100,135.19 | 100,135.19 |
Stampduty | 6,282.95 | 4,594.61 |
Educationsurcharge | 99,824.96 | 116,355.46 |
Comprehensivefees | 1,075,134.76 | 1,075,134.76 |
Environmentalprotectiontax | 213.55 | 197.13 |
Total | 9,094,382.58 | 7,066,085.89 |
Othernotes:
25.OtherPayables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Interestpayable | ||
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Otherpayables | 199,948,693.36 | 195,520,817.07 |
Total | 203,840,127.19 | 199,412,250.90 |
(1)DividendsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Ordinarystockdividends | 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 |
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
Item | Endingbalance | Beginningbalance |
Marginandcashpledged | 2,674,213.08 | 3,369,213.08 |
Intercoursefundsamongunits | 10,791,973.79 | 10,977,924.77 |
Intercoursefundsamongindividuals | 333,412.05 | 375,201.04 |
Salesdiscountandthreeguarantees | 143,497,522.22 | 144,278,468.99 |
Other | 42,651,572.22 | 36,520,009.19 |
Total | 199,948,693.36 | 195,520,817.07 |
2)SignificantOtherPayablesAgingoverOneYear
Thesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
26.CurrentPortionofNon-currentLiabilities
Unit:RMB
Item | Endingbalance | Beginningbalance |
Currentportionoflong-termborrowings | 0.00 | 18,500,000.00 |
Total | 0.00 | 18,500,000.00 |
Thecurrentportionoflong-termborrowingswasRMB18,500,000.00whichwastheborrowingfortechnicaltransformationprojectoftheCompanyastheparentprovidedbyChinaMerchantsBankChangzhouBranchwiththetermfrom20September2017to19September2019andtheinterestrateof4.75%.
27.OtherCurrentLiabilitiesWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
Item | Endingbalance | Beginningbalance |
Saleservicefee | 229,387.96 | |
Transportationstoragefee | 132,551.86 | |
Electriccharge | 815,772.56 | 2,082,985.18 |
Total | 1,177,712.38 | 2,082,985.18 |
28.Long-termBorrowings
(1)CategoryofLong-termBorrowings
Unit:RMB
Item | Endingbalance | Beginningbalance |
Mortgageloans | 0.00 | 2,000,000.00 |
Total | 0.00 | 2,000,000.00 |
Themortgageloanattheperiod-endwasRMB2,000,000.00,whichwastheloanbythesubsidiary-ChangchaiWanzhoufromGaosuntangBranchofChongqingThreeGorgesBankwiththedurationfrom14December2017to6November2020andtheinterestrateof6.15%.Theloanhasbeenpaidoffinadvanceon24May2019.
29.DeferredIncome
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
Governmentsubsidies | 59,928,484.84 | 1,064,373.62 | 58,864,111.22 | Governmentappropriation | |
Total | 59,928,484.84 | 1,064,373.62 | 58,864,111.22 | -- |
Iteminvolvinggovernmentsubsidies:
Unit:RMB
Item | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
Electriccontrolofdieselengineresearchanddevelopmentandindustrializationallocations | 646,800.00 | 398,400.00 | 248,400.00 | Relatedtoassets | ||
Nationalmajorprojectspecialallocations | 28,770,000.00 | 28,770,000.00 | Relatedtoassets | |||
Removecompensation | 20,511,684.84 | 665,973.62 | 19,845,711.22 | Relatedtoassets |
ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 10,000,000.00 | 10,000,000.00 | Relatedtoassets | |||
Total | 59,928,484.84 | 1,064,373.62 | 58,864,111.22 |
30.ShareCapital
Unit:RMB
Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
Thesumofshares | 561,374,326.00 | 561,374,326.00 |
31.CapitalReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Capitalpremium(premiumonstock) | 143,990,690.24 | 143,990,690.24 | |
Othercapitalreserves | 20,337,975.19 | 20,337,975.19 | |
Total | 164,328,665.43 | 164,328,665.43 |
32.OtherComprehensiveIncome
Unit:RMB
Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredtoprofitorlossintheCurrentPeriod | Less:RecordedintoothercomprehensiveincomeinpriorperiodandtransferredtoretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 264,405,675.00 | 61,946,000.00 | 9,291,900.00 | 52,654,100.00 | 317,059,775.00 | |||
Ofwhich:Changescausedbyre-measurementsondefinedbenefitpensionschemes | ||||||||
Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod |
Changesinfairvalueofotherequityinstrumentinvestment | 264,405,675.00 | 61,946,000.00 | 9,291,900.00 | 52,654,100.00 | 317,059,775.00 | ||
Changesinfairvalueofcorporatecreditrisk | |||||||
II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | |||||||
Ofwhich:Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | |||||||
Changesinfairvalueofothercreditor’srightsinvestment | |||||||
Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | |||||||
Creditdepreciationreservesofothercreditor’srightsinvestment | |||||||
Reservesforcashflowhedges | |||||||
Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | |||||||
Totalofothercomprehensiveincome | 264,405,675.00 | 61,946,000.00 | 9,291,900.00 | 52,654,100.00 | 317,059,775.00 |
33.SpecificReserve
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Safetyproductioncost | 15,182,958.83 | 3,868,727.07 | 1,491,483.83 | 17,560,202.07 |
Total | 15,182,958.83 | 3,868,727.07 | 1,491,483.83 | 17,560,202.07 |
34.SurplusReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Statutorysurplusreserves | 306,976,192.25 | 2,093,650.19 | 309,069,842.44 | |
Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
Total | 320,133,050.15 | 2,093,650.19 | 322,226,700.34 |
35.RetainedEarnings
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Beginningbalanceofretainedearningsbeforeadjustments | 717,883,351.33 | 679,131,047.06 |
Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | ||
Beginningbalanceofretainedearningsafteradjustments | 717,883,351.33 | 679,131,047.06 |
Add:NetprofitattributabletoownersoftheCompanyastheparent | 24,934,586.11 | 62,021,374.04 |
Less:Withdrawalofstatutorysurplusreserves | 2,093,650.19 | 6,427,839.99 |
Withdrawalofdiscretionalsurplusreserves | ||
Withdrawalofgeneralreserve | ||
Dividendofordinarysharespayable | 14,034,358.15 | 16,841,229.78 |
Dividendsofordinarysharestransferredassharecapital | ||
Endingretainedearnings | 726,689,929.10 | 717,883,351.33 |
36.OperatingRevenueandCostofSales
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales |
Mainoperations | 2,001,911,782.04 | 1,679,856,891.00 | 2,093,039,249.58 | 1,782,146,126.35 |
Otheroperations | 38,221,935.26 | 29,792,886.75 | 39,863,469.02 | 31,298,459.31 |
Total | 2,040,133,717.30 | 1,709,649,777.75 | 2,132,902,718.60 | 1,813,444,585.66 |
WhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
37.TaxesandSurtaxes
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Urbanmaintenanceandconstructiontax | 955,480.56 | 1,538,140.51 |
Educationsurcharge | 682,129.42 | 1,098,335.32 |
Propertytax | 4,692,583.81 | 4,720,363.62 |
Landusetax | 3,813,015.72 | 3,813,015.72 |
Vehicleandvesselusetax | 1,320.00 | 1,920.00 |
Stampduty | 541,541.14 | 1,046,929.90 |
Environmenttax | 238,068.00 | 194,011.91 |
Other | 34,933.24 | 120,012.70 |
Total | 10,959,071.89 | 12,532,729.68 |
38.SellingExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Officeexpenses | 15,164,256.65 | 15,226,739.67 |
Employee’sremuneration | 29,850,039.44 | 30,898,847.11 |
Salespromotionalexpense | 5,260,765.63 | 11,065,465.84 |
Threeguarantees | 38,321,773.50 | 59,459,243.39 |
Transportcharge | 7,296,670.11 | 7,875,890.07 |
Other | 1,191,611.72 | 2,470,880.79 |
Total | 97,085,117.05 | 126,997,066.87 |
39.AdministrativeExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Officeexpenses | 11,008,664.40 | 13,620,335.64 |
Employee’sremuneration | 55,260,415.45 | 63,552,532.88 |
Depreciationandamortization | 11,164,412.83 | 12,141,787.46 |
Transportfees | 2,035,060.15 | 2,203,781.08 |
Repaircharge | 391,744.51 | 918,265.20 |
Safetyexpenses | 3,868,727.07 | 4,135,805.99 |
Other | 22,454,108.99 | 19,455,330.71 |
Total | 106,183,133.40 | 116,027,838.96 |
40.R&DExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Directinputexpense | 39,929,867.41 | 44,893,971.91 |
Employee’sremuneration | 19,795,993.59 | 22,101,113.31 |
Depreciationandamortization | 3,926,467.26 | 2,812,179.10 |
EntrustedR&Dcharges | 26,000.00 | 700,000.00 |
Other | 2,543,048.01 | 1,675,576.46 |
Total | 66,221,376.27 | 72,182,840.78 |
41.FinanceCosts
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Interestexpense | 5,722,554.43 | 4,553,608.46 |
Less:Interestincome | 6,719,990.78 | 4,665,445.23 |
Netforeignexchangegainsorlosses | -1,709,183.70 | -6,194,688.23 |
Other | -1,718,251.11 | 5,402,762.70 |
Total | -4,424,871.16 | -903,762.30 |
42.OtherIncome
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Governmentsubsidies | 5,312,295.51 | 6,291,685.65 |
43.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Long-termequityinvestmentincomeaccountedbyequitymethod | ||
Investmentincomefromdisposaloflong-termequityinvestment | ||
Investmentincomefromholdingoftradingfinancialassets | ||
Investmentincomefromdisposaloftradingfinancialassets | ||
Dividendincomefromholdingofotherequityinstrumentinvestment | 6,069,000.00 | |
Investmentincomefromholdingofheld-to–maturityinvestment | ||
Investmentincomefromholdingofavailable-for-salefinancialassets | 7,607,870.00 | |
Investmentincomefromdisposalofavailable-for-salefinancialassets | 104,824,084.63 | |
Investmentincomefromdisposalofheld-to–maturityinvestment | ||
Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
Interestincomefromholdingofcreditor’srightsinvestment | ||
Interestincomefromholdingofothercreditor’srightsinvestment | ||
Investmentincomefromdisposalofothercreditor’srightsinvestment | ||
Investmentincomefromdisposalofothernon-currentfinancialassets | -18,685.03 | |
Investmentincomefromholdingofothernon-currentfinancialassets | 1,408,752.61 | |
Investmentincomefromdisposaloffinancialproductsofsecuritiescompany | 354,829.53 | 838,870.20 |
Otherincomefromholdingofequityinstrumentinvestment | 137,814.50 | |
Total | 7,951,711.61 | 113,270,824.83 |
44.GainonChangesinFairValue
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Tradingfinancialassets | -49,255.00 | |
Ofwhich:gainonchangesinfairvalueofderivativefinancialinstrument | -49,255.00 | |
Total | -49,255.00 |
45.CreditImpairmentLoss
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Baddebtlossofotherreceivables | -292,395.68 | |
Baddebtlossofaccountsreceivable | -4,640,733.21 | |
Impairmentlossofentrustedloan | 4,000,000.00 | |
Total | -933,128.89 |
46.AssetImpairmentLossWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
I.Baddebtloss | -5,459,103.29 | |
II.Lossoninventoryvaluationandcontractperformancecost | -42,371,202.17 | -42,139,394.79 |
III.Impairmentlossonavailable-for-salefinancialassets | ||
IV.Impairmentlossonheld-to-maturityinvestment | ||
V.Impairmentlossonlong-termequityinvestment | ||
VI.Impairmentlossoninvestmentproperty | ||
VII.Impairmentlossonfixedassets |
VIII.Impairmentlossonengineeringmaterials | ||
IX.Impairmentlossonconstructioninprogress | ||
X.Impairmentlossonproductivelivingassets | ||
XI.Impairmentlossonoilandgasassets | ||
XII.Impairmentlossonintangibleassets | ||
XIII.Impairmentlossongoodwill | ||
XIV.Other | -10,000,000.00 | |
Total | -42,371,202.17 | -37,598,498.08 |
47.AssetDisposalIncome
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Fixedassetdisposalincome | 2,059,668.56 | 662,151.89 |
48.Non-operatingIncome
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Insuranceindemnity | 1,179,518.37 | ||
Incomefrompenalty | 373,200.44 | 112,645.60 | 373,200.44 |
Incomegeneratedfromdisposalofcurrentassets | 502,640.00 | ||
Other | 59,319.94 | 144,191.79 | 59,319.94 |
Notneedtopay | 13,825.00 | 13,825.00 | |
Total | 446,345.38 | 1,938,995.76 | 446,345.38 |
49.Non-operatingExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Lossondisposalofnon-currentassets | 145,531.09 | 928,118.57 | 145,531.09 |
Lossondisposalofcurrentassets | 539,665.92 | ||
Other | 73,810.45 | 6,434.00 | 73,810.45 |
Total | 219,341.54 | 1,474,218.49 | 219,341.54 |
50.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Currentincometaxexpense | 1,929,642.45 | 13,721,905.60 |
Deferredincometaxexpense | -224,823.90 | -176,242.93 |
Total | 1,704,818.55 | 13,545,662.67 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod |
Profitbeforetaxation | 26,657,205.56 |
Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 3,998,580.82 |
Influenceofapplyingdifferenttaxratesbysubsidiaries | 300,367.06 |
Influenceofincometaxbeforeadjustment | -6,783,397.42 |
Influenceofnon-taxableincome | -974,350.00 |
Influenceofnon-deductablecosts,expensesandlosses | 228,027.17 |
InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | 8,530,167.41 |
Taxpreferencegeneratedfromeligibleexpense | -3,594,576.49 |
Incometaxexpense | 1,704,818.55 |
51.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Subsidyandappropriation | 4,247,921.89 | 5,227,312.03 |
Otherintercoursesincash | 79,063.29 | 2,429,574.19 |
Interestincome | 6,974,058.50 | 4,665,445.23 |
Other | 378,925.22 | |
Total | 11,679,968.90 | 12,322,331.45 |
Notes:
(2)CashUsedinOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Sellingexpensepaidincash | 62,490,016.60 | 70,472,280.14 |
Administrativeexpensepaidincash | 57,388,527.86 | 44,119,952.70 |
Handlingcharge | 937,381.75 | 517,221.04 |
Other | 317,407.08 | 1,494,483.87 |
Total | 121,133,333.29 | 116,603,937.75 |
52.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
Netprofit | 24,952,387.01 | 62,166,697.84 |
Add:Provisionforimpairmentofassets | 43,304,331.06 | 37,598,498.08 |
Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 85,506,176.89 | 86,806,660.70 |
Depreciationofright-to-useassets | ||
Amortizationofintangibleassets | 4,826,730.02 | 5,248,080.61 |
Amortizationoflong-termdeferredexpenses | ||
Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -2,059,668.56 | -662,151.89 |
Lossesonthescrappingoffixedassets(gainsby“-”) | 145,531.09 | 928,118.57 |
Lossesonthechangesinfairvalue(gainsby“-”) | 49,255.00 | |
Financialexpenses(gainsby“-”) | 5,007,157.46 | 4,553,608.46 |
Investmentlosses(gainsby“-”) | -7,951,711.61 | -113,270,824.83 |
Decreaseindeferredincometaxassets(increaseby“-”) | -44,033.81 | 27,131.10 |
Increaseindeferredincometaxliabilities(decreaseby“-”) | -180,790.09 | -203,374.03 |
Decreaseininventory(increaseby“-”) | 42,230,678.95 | -91,846,479.01 |
Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -139,462,798.46 | 232,739,906.78 |
Increaseinpayablesfromoperatingactivities(decreaseby“-”) | -99,430,107.30 | 63,742,812.33 |
Other | 22,564,004.83 | -14,009,157.82 |
Netcashflowsgeneratedfromoperatingactivities | -20,542,857.52 | 273,819,526.89 |
2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | -- | -- |
Debttransferredascapital | ||
Convertiblecorporatebondduewithinoneyear | ||
Fixedassetsfromfinancinglease | ||
3.Netincreaseincashandcashequivalents | -- | -- |
Endingbalanceofcash | 544,584,744.17 | 687,079,639.59 |
Less:Beginningbalanceofcash | 687,079,639.59 | 325,263,654.43 |
Add:Endingbalanceofcashequivalents | ||
Less:Beginningbalanceofcashequivalents | ||
Netincreaseincashandcashequivalents | -142,494,895.42 | 361,815,985.16 |
(2)CashandCashEquivalents
Unit:RMB
Item | Endingbalance | Beginningbalance |
I.Cash | 544,584,744.17 | 687,079,639.59 |
Including:Cashonhand | 153,975.35 | 441,363.70 |
Bankdepositondemand | 543,923,045.33 | 684,620,907.41 |
Othermonetaryassetsondemand | 507,723.49 | 2,017,368.48 |
Accountsdepositedinthecentralbankavailableforpayment | ||
Depositsinotherbanks | ||
Accountsofinterbank | ||
II.Cashequivalents | ||
Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
III.Endingbalanceofcashandcashequivalents | 544,584,744.17 | 687,079,639.59 |
Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
53.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
Item | Endingcarryingvalue | Reasonforrestriction |
Monetaryassets | 92,629,261.89 | Ascashdepositforbankacceptancebill |
Housesandbuildings | 2,936,446.13 | Mortgagedforborrowingsfrombanks |
Landuseright | 995,328.00 | Mortgagedforborrowingsfrombanks |
Machineryequipment | 48,181,935.62 | Mortgagedforborrowingsfrombanks |
Total | 144,742,971.64 | -- |
54.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
Monetaryassets | -- | -- | |
Ofwhich:USD | 12,870,806.64 | 6.9762 | 89,789,321.28 |
EUR |
HKD | 280,787.13 | 0.8958 | 251,529.11 |
SGD | 54,427.95 | 5.1739 | 281,604.77 |
JPY | 19,477,137.00 | 0.0641 | 1,248,484.48 |
Accountsreceivable | -- | -- | |
Ofwhich:USD | 9,340,696.90 | 6.9762 | 65,162,569.71 |
Accountspayable | - | ||
Ofwhich:USD | 302.60 | 6.9762 | 2,111.00 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
55.GovernmentSubsidy
(1)BasicInformationonGovernmentSubsidy
Unit:RMB
Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
Trinitysubsidy | 674,000.00 | Otherincome | 674,000.00 |
Subsidyforstabilizingposts | 2,162,251.03 | Otherincome | 2,162,251.03 |
ResearchfundforagriculturalmachinerypollutantdischargecontroltechnologyandsystemofLuoyangtractorsresearchlaboratory | 156,000.00 | Otherincome | 156,000.00 |
ResearchfundforagriculturaldieselenginecleancombustionkeytechnologyofWuhanUniversityofTechnology | 59,400.00 | Otherincome | 59,400.00 |
ECIsubsidy | 474,400.00 | Otherincome | 474,400.00 |
Relocationcompensation | 665,973.62 | Otherincome | 665,973.62 |
Patentrewards | 200,000.00 | Otherincome | 200,000.00 |
FundforhillsidetractorkeytechnologyresearchandcompletemachinedevelopmentofJiangsuUniversity | 96,959.20 | Otherincome | 96,959.20 |
R&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 398,400.00 | Otherincome | 398,400.00 |
Taxcontributionsreward | 80,000.00 | Otherincome | 80,000.00 |
Industrydevelopmentfund | 60,000.00 | Otherincome | 60,000.00 |
Otherrewardsandsubsidies | 59,611.66 | Otherincome | 59,611.66 |
Appropriationofothertechnologicalprojects | 225,300.00 | Otherincome | 225,300.00 |
AppropriationforR&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 248,400.00 | Deferredincome | |
Nationalmajorspecialappropriation | 28,770,000.00 | Deferredincome | |
Relocationcompensation | 19,845,711.22 | Deferredincome | |
AppropriationorresearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 10,000,000.00 | Deferredincome |
ReturnofGovernmentSubsidy
□Applicable√Notapplicable
VIII.ChangesofConsolidationScope
1.ChangesinCombinationScopeforOtherReasonsNotetochangesincombinationscopeforotherreasons(suchasnewlyestablishmentorliquidationofsubsidiaries,etc.)andrelevantinformation:
On25February2019,theinterimboardmeetingheldbytheCompany,examinedandapprovedtheProposalonEstablishingWholly-ownedSubsidiarytoImplementtheProductionProjectofLightDutyEngineandCasting,andagreedtheCompanytosetupawholly-ownedsubsidiaryinRMB300milliontoimplementtheproductionproject.RefertoAnnouncementofForeignInvestmentandEstablishingtheWholly-ownedSubsidiary(AnnouncementNo.2019-004)inSecurityTimes,TaKungPaoandthecninfowebsiteon26February2019fordetails.
On6March2019,thewholly-ownedsubsidiarycompletedtheregistrationproceduresandgainedthebusinesslicenseissuedbyAdministrativeApprovalBureauofChangzhouNationalHigh-techIndustryDevelopmentZone(XinbeiDistrict).RefertoAnnouncementofProceduresofForeignInvestmentandEstablishingtheWholly-ownedSubsidiary(AnnouncementNo.2019-005)inSecurityTimes,TaKungPaoandthecninfowebsiteon7March2019fordetails.
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
Directly | Indirectly | |||||
ChangchaiWanzhouDieselEngineCo.,Ltd. | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Changzhou | Changzhou | Industry | 99.00% | 1.00% | Set-up |
ChangzhouHoushengInvestmentCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up | |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | Changzhou | Changzhou | Industry | 70.00% | 25.00% | Set-up |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Combinationnotunderthesamecontrol | |
JiangsuChangchaiMachineryCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Set-up |
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 64,142.17 | 19,613,948.72 | |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 5.00% | -46,341.27 | 22,332.29 |
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. | 43,807,991.71 | 25,821,314.00 | 69,629,305.71 | 20,594,433.90 | 20,594,433.90 | 44,946,886.20 | 26,693,776.10 | 71,640,662.30 | 20,766,145.92 | 2,000,000.00 | 22,766,145.92 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 28,573,892.12 | 514,669.94 | 29,088,562.06 | 28,641,916.23 | 28,641,916.23 | 35,776,302.79 | 625,680.72 | 36,401,983.51 | 35,028,512.30 | 35,028,512.30 |
Unit:RMB
Name | ReportingPeriod | Sameperiodoflastyear | ||||||
Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 40,959,222.43 | 160,355.43 | 160,355.43 | 1,526,529.99 | 46,653,660.46 | 1,117,933.80 | 1,117,933.80 | 1,632,974.66 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 13,888,579.77 | -926,825.38 | -926,825.38 | -419,750.02 | 17,505,784.08 | -6,036,994.34 | -6,036,994.34 | -1,896,203.08 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018,newpartners
wereadded.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhuandTongYinxin.InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.X.TheRiskRelatedtoFinancialInstrumentsThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.
ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRisk
Creditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.
ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable.Inordertocontroltherisk,theCompanyconductsthefollowingmethods.
TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.
(II)LiquidityRisk
Liquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.
TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.
(III)MarketRisk
Marketriskisreferredtoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,including:foreignexchangeraterisk,interestraterisk.
1.InterestRateRisk
Interestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRisk
Foreignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,theCompany’saccountsreceivablewillincurforeigncurrencyexchangeloss.XI.TheDisclosureofFairValue
1.TheDisclosureofFairValue
Unit:RMB
Item | Endingfairvalue |
Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
(I)Financialassetsatfairvaluethroughprofitorloss | 432,886,000.00 | 187,952,101.63 | 620,838,101.63 | |
1.Tradingfinancialassets | 87,952,101.63 | 87,952,101.63 | ||
(1)Debtinstrumentinvestment | 10,000,000.00 | 10,000,000.00 | ||
(2)Equityinstrumentinvestment | 77,952,101.63 | 77,952,101.63. | ||
(3)Derivativefinancialassets | ||||
2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
(1)Debtinstrumentinvestment | ||||
(2)Equityinstrumentinvestment | ||||
(II)Otherbondinvestment | ||||
(III)Otherequityinstrumentinvestment | 432,886,000.00 | 100,000,000.00 | 532,886,000.00 | |
(2)Equityinstrumentinvestment | ||||
(IV)Investmentproperty | ||||
1.Landuserightforlease | ||||
2.Buildingsleasedout | ||||
3.Landuserightheldandplantobetransferredonceappreciating | ||||
(V)Livingassets | ||||
1.Consumptivelivingassets | ||||
2.Productivelivingassets | ||||
Totalassetsconsistentlymeasuredbyfairvalue | 432,886,000.00 | 187,952,101.63 | 620,838,101.63 | |
(VI)Tradingfinancialliabilities | ||||
Ofwhich:Issuedtradingbonds | ||||
Derivativefinancialliabilities |
Other | ||||
(VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
(1)Held-to-saleassets | ||||
Totalassetsinconsistentlymeasuredbyfairvalue | ||||
Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Theavailable-for-salefinancialassetsmeasuredatfairvalueoftheCompanywereshareswiththeclosingpriceasthebasisoffairvaluecalculationatperiod-end.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)IntermsoftradingfinancialassetsheldbytheCompany,astheunderlyingassetsthroughfinancialproductsinvestmentincludecash,bondrepurchase,bankdeposit,interbankloan,nationalbankandcentralbankbill,etc.,theassetsportfolioinvestedwereexecuteddynamicmanagement,whilethefairvalueoffinancialproductsisdifficulttomeasure,sothefairvalueshallberecognizedbyadoptingcostamount.
(2)Intermsofnon-tradingfinancialassets,withregardtotheequityinstrumentinvestmentwithoutactivemarkettransactions,includingthecapitalinvestmenttoJiangsuHoushengNewEnergyTechnologyCo.,Ltd.,JiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd.,andnosignificantimpactduetothelowequityoftheinvestedcompaniesheldbytheCompany,sotheappraisementtotheinvestedcompaniesbyincomeormarketapproachwasunfeasible.Therefore,theinvestmentcostshallberegardedasreasonableestimationoffairvaluetomeasureattheperiod-end.
IntermsofsharesofNEEQunlistedpubliccompaniesheldbytheCompany,asfortheequityinstrumentinvestmentwithinactivemarkettransactions,duetothemarketvalueofsharescannotbereflectedbythemarkettransactionpricewiththelowvolumeofholding,sotheappraisementtotheinvestedcompaniesbyincomeormarketapproachwasunfeasible.Therefore,theinvestmentcostshallberegardedasreasonableestimationoffairvaluetomeasureattheperiod-end.
(3)Intermsofotherequityinstrumentinvestment,therewasnosignificantchangesinbusinessenvironmentandcircumstanceandfinancialconditionofChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership),andthustheinvestmentcostshallberegardedasreasonableestimationoffairvaluetomeasureat
theperiod-end.XII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc. | RMB1.2billion | 30.43% | 30.43% |
Notes:InformationontheCompanyastheparent
On22November2018,ChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontransferredall170,845,236sharesoftheCompany(accountingfor30.43%ofthetotalsharecapitaloftheCompany)toChangzhouInvestmentGroupCo.,Ltd.forfree.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),boththeCompanyandChangzhouInvestmentGroupCo.,Ltd.areenterpriseswhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,afterthesharertransfer,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteIXfordetails.
3.InformationonOtherRelatedParties
Name | RelationshipwiththeCompany |
SynergeticInnovationFundManagementCo.,Ltd. | ThedirectoroftheCompanyservesastheseniormanagementofthecompany |
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
JiangsuHoushengNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
4.Related-partyTransactions
(1)AssetTransferandDebtRestructuringofRelatedParty
Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Equitytransfer(JiangsuHoushengNewEnergyTechnologyCo.,Ltd.) | 50,000,000.00 |
XIII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentonthebalancesheetdateAsof31December2019,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDatePreviouslitigationscontinuingtotheReportingPeriodtheCompanyinvolved:
Nameofdefendant | Dateofaccepted | Nameofthelitigationorarbitrationinstitutions | Amountinvolved(RMB’0,000) | Remark |
ShandongHongliGroupCo.,Ltd. | 27June2001 | ChangzhouIntermediatePeople’sCourt | 1,436.00 | Underthebankruptcyandliquidation |
Notes:
AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulativelyRMB14.36milliontotheCompany.TheCompanysuedtoChangzhouIntermediatePeople’sCourtin2001andsuedforcompulsoryexecutioninApril2002.Currently,thedefendanthasstartedthebankruptcyprocedure.Theaforesaidpaymenthasarrangedforthefullprovisionforbaddebts.
XIV.EventsafterBalanceSheetDate
1.ProfitDistribution
Unit:RMB
Profitsordividendstobedistributed | 0 |
2.NotestoOtherEventsafterBalanceSheetDate
AftertheoutbreakoftheepidemicofCOVID-19,theCompanyrespondedpromptlyandsetupepidemicpreventiongroupheadedbythegeneralmanagertodirectthepreventioninallrespects.Thematerialsforepidemicpreventionwereadequate,andtheCompanyhasorganizedtheemergencyexercisewiththestaffofalllevelstoensuresafeproductionandtocontrolandprevent.TheparentoftheCompanyreturnedtoworkon11February2020,andothersubsidiariessuccessivelyafter7to15daysaswell.Duetothedifferenttimeinworkresumptionofeachproductionprocess,theproductionefficiencywasinfluencedtosomeextent.Duetotheunevenreturntimeofeachproductionprocess,theproductionefficiencyisgreatlyaffected,andthedeliverypressureofthecompanyislarge.Tosumup,therewasnegativeinfluenceoftheepidemictotheoperationperformanceinthefirstquarterofCompanytosomeextent,butinsignificantinfluencetotheyearlyperformance.XV.OtherSignificantEvents
1.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegment
DuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommonmanagement,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
2.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-making
Asoftheapprovalissuedateoffinancialstatements,theCompanydidnotcompletetheliquidationproceduresof2019annualenterpriseincometax.
XVI.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance |
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 37,510,056.90 | 6.66% | 33,788,291.86 | 90.08% | 3,721,765.04 | 35,823,767.01 | 6.85% | 32,806,077.14 | 91.58% | 3,017,689.87 |
Ofwhich: | ||||||||||
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 32,618,199.97 | 5.79% | 28,896,434.93 | 88.59% | 3,721,765.04 | 32,008,110.06 | 6.12% | 28,990,420.19 | 90.57% | 3,017,689.87 |
Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 4,891,856.93 | 0.87% | 4,891,856.93 | 100.00% | 3,815,656.95 | 0.73% | 3,815,656.95 | 100.00% | ||
Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 525,874,423.56 | 93.34% | 192,148,650.56 | 36.54% | 333,725,773.00 | 487,566,507.88 | 93.15% | 190,226,913.94 | 39.02% | 297,339,593.94 |
Ofwhich: |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 525,874,423.56 | 93.34% | 192,148,650.56 | 36.54% | 333,725,773.00 | 487,566,507.88 | 93.15% | 190,226,913.94 | 39.02% | 297,339,593.94 |
Total | 563,384,480.46 | 100.00% | 225,936,942.42 | 40.10% | 337,447,538.04 | 523,390,274.89 | 100.00% | 223,032,991.08 | 42.61% | 300,357,283.81 |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod:
Unit:RMB
Name | Endingbalance | |||
Carryingamount | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
Customer1 | 1,975,482.35 | 338,497.45 | 17.13% | Expectedtodifficultlyrecover |
Customer2 | 1,470,110.64 | 1,470,110.64 | 100.00% | Expectedtodifficultlyrecover |
Customer3 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
Customer4 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
Customer5 | 2,445,367.85 | 2,177,128.33 | 89.03% | Expectedtodifficultlyrecover |
Customer6 | 3,633,081.23 | 1,816,540.62 | 50.00% | Expectedtodifficultlyrecover |
Customer7 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
Customer8 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
Customer9 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
Customer10 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer11 | 1,684,504.84 | 1,684,504.84 | 100.00% | Difficulttorecover |
Total | 32,618,199.97 | 28,896,434.94 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
Name | Endingbalance | ||
Carryingamount | Baddebtprovision | Withdrawalproportion |
Within1year | 323,342,224.45 | 6,466,844.49 | 2.00% |
1to2years | 12,433,193.78 | 621,659.69 | 5.00% |
2to3years | 4,709,436.22 | 706,415.43 | 15.00% |
3to4years | 960,385.32 | 288,115.60 | 30.00% |
4to5years | 908,921.11 | 545,352.67 | 60.00% |
Over5years | 183,520,262.68 | 183,520,262.68 | 100.00% |
Total | 525,874,423.56 | 192,148,650.56 | -- |
Notestothebasisforthedeterminationofthegroups:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsoccurredactually,amongwhichtheaccountsoccurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Carryingamount |
Within1year(including1year) | 324,694,509.71 |
1to2years | 14,957,898.01 |
2to3years | 8,536,920.63 |
Over3years | 215,195,152.11 |
3to4years | 4,031,389.90 |
4to5years | 1,346,662.43 |
Over5years | 209,817,099.78 |
Total | 563,384,480.46 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
Withdrawal | Reversalorrecovery | Write-off | Other |
Baddebtprovisionwithdrawnseparately | 32,806,077.14 | 3,347,105.91 | 2,364,891.19 | 33,788,291.86 | |
Baddebtprovisionwithdrawnbygroup | 190,226,913.94 | 2,808,078.37 | 886,341.75 | 192,148,650.56 | |
Total | 223,032,991.08 | 6,155,184.28 | 3,251,232.94 | 225,936,942.42 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No
(3)ThereWasNoParticularsoftheActualVerificationofAccountsReceivableduringtheReportingPeriod
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsParty
Unit:RMB
Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
Customer1 | 170,103,568.50 | 30.19% | 3,402,071.37 |
Customer2 | 23,896,557.76 | 4.24% | 477,931.16 |
Customer3 | 21,182,519.25 | 3.76% | 423,650.39 |
Customer4 | 21,885,020.77 | 3.88% | 437,700.42 |
Customer5 | 18,470,927.36 | 3.28% | 369,418.55 |
Total | 255,538,593.64 | 45.35% |
2.OtherReceivables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Otherreceivables | 23,639,899.46 | 21,681,331.85 |
Total | 23,639,899.46 | 21,681,331.85 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
Nature | Endingcarryingamount | Beginningcarryingamount |
CashdepositandMargin | 4,200.00 | 4,200.00 |
Intercoursefundsamongunits | 38,535,333.35 | 36,267,607.16 |
Pettycashandborrowingsbyemployees | 624,083.07 | 596,876.87 |
Other | 15,373,206.41 | 15,364,366.83 |
Total | 54,536,822.83 | 52,233,050.86 |
2)WithdrawalofBadDebtProvision
Unit:RMB
Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
Balanceof1January2019 | 30,551,719.01 | 30,551,719.01 | ||
Balanceof1January2019intheCurrentPeriod | —— | —— | —— | —— |
--TransfertoSecondstage | ||||
--TransfertoThirdstage | ||||
--ReversetoSecondstage | ||||
--ReversetoFirststage | ||||
WithdrawaloftheCurrentPeriod | 345,204.36 | 345,204.36 | ||
ReversaloftheCurrentPeriod | ||||
Write-offsoftheCurrentPeriod | ||||
VerificationoftheCurrentPeriod |
Otherchanges | |||
Balanceof31December2019 | 30,896,923.37 | 30,896,923.37 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Carryingamount |
Within1year(including1year) | 21,069,950.51 |
1to2years | 1,594,927.07 |
2to3years | 1,513,504.75 |
Over3years | 30,358,440.50 |
3to4years | 215,594.13 |
4to5years | 96,930.77 |
Over5years | 30,045,915.60 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
Withdrawal | Reversalorrecovery | Write-off | Other | |||
Baddebtprovisionwithdrawnseparately | 5,011,963.16 | 30,485.42 | 5,042,448.58 | |||
Baddebtprovisionwithdrawnbygroup | 25,539,755.85 | 314,718.94 | 25,854,474.79 | |||
Total | 30,551,719.01 | 345,204.36 | 30,896,923.37 |
Otherreceivableswithsignificantamountwithdrawnbaddebtprovisionseparatelyattheperiod-end:
Unit:RMB
Otherreceivables | Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason |
ChangchaiGroupImp.&Exp.Co., | 2,853,188.02 | 2,853,188.02 | 100 | Difficultto |
Ltd. | recover | |||
Total | 2,853,188.02 | 2,853,188.02 |
4)ParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod:No.
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Intercoursefunds | 10,000,000.00 | Within1year | 18.34% | 200,000.00 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 9,215,263.56 | Within1yearwithRMB8,088,841.90,1to2yearswithRMB1,126,421.66 | 16.90% | 218,097.92 |
ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 5.39% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 5.23% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 2.98% | 1,626,483.25 |
Total | -- | 26,634,934.83 | -- | 48.84% | 7,837,769.19 |
3.Long-termEquityInvestment
Unit:RMB
Item | Endingbalance | Beginningbalance |
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Investmenttosubsidiaries | 251,752,730.03 | 0.00 | 251,752,730.03 | 241,752,730.03 | 0.00 | 241,752,730.03 |
Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 0.00 | 44,182.50 | 44,182.50 | 0.00 |
Total | 251,796,912.53 | 44,182.50 | 251,752,730.03 | 241,796,912.53 | 44,182.50 | 241,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
Investees | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||
Additionalinvestment | Reducedinvestment | Withdrawalofdepreciationreserves | Other | ||||
ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | |||||
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | |||||
ChangzhouHoushengInvestmentCo.,Ltd. | 40,000,000.00 | 40,000,000.00 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 7,000,000.00 | 7,000,000.00 | |||
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||
JiangsuChangchaiMachineryCo.,Ltd. | 10,000,000.00 | 10,000,000.00 | |||
Total | 241,752,730.03 | 10,000,000.00 | 251,752,730.03 | 0.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
II.Associatedenterprises |
BeijingTsinghuaXingyeIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 0.00 | 44,182.50 | |
Subtotal | 0.00 | 0.00 | 44,182.50 | |
Total | 0.00 | 0.00 | 44,182.50 |
4.OperatingRevenueandCostofSales
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
Mainoperations | 1,829,511,302.64 | 1,547,250,831.33 | 1,929,864,957.32 | 1,659,272,787.45 |
Otheroperations | 36,780,436.75 | 28,376,158.13 | 38,862,108.04 | 30,434,073.18 |
Total | 1,866,291,739.39 | 1,575,626,989.46 | 1,968,727,065.36 | 1,689,706,860.63 |
WhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
5.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Dividendincomefromholdingofotherequityinstrumentinvestment | 6,069,000.00 | |
Investmentincomefromholdingofavailable-for-salefinancialassets | 7,597,950.00 | |
Investmentincomefromdisposalofavailable-for-salefinancialassets | 104,866,770.49 |
Incomefromtransferringtoaccommodationbusiness | 137,814.50 | |
Total | 6,206,814.50 | 112,464,720.49 |
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
Item | Amount | Note |
Gains/lossesonthedisposalofnon-currentassets | 1,914,137.47 | |
Governmentgrantsrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 5,312,295.51 | |
Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentgainsandlosses | 536,504.84 | |
Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andothercreditor’srightsinvestment,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | -49,255.00 | |
Othernon-operatingincomeandexpensesotherthantheabove | 372,534.93 |
Reversedportionsofimpairmentallowancesforentrustmentloanswhicharetestedindividuallyforimpairment | 4,000,000.00 | |
Less:Incometaxeffects | 1,520,857.98 | |
Non-controllinginterestseffects | 7,556.87 | |
Total | 10,557,802.90 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
EPS-basic | EPS-diluted | ||
NetprofitattributabletoordinaryshareholdersoftheCompany | 1.20% | 0.04 | 0.04 |
NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 0.69% | 0.03 | 0.03 |
PartXIIIDocumentsAvailableforReference
1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment;
2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm;
3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod;and
4.TheAnnualReportdisclosedonotherstockmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.ThisAnnualReportanditsabstracthavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
TheBoardofDirectorsChangchaiCompany,Limited
11April2020