CHANGCHAICOMPANY,LIMITED
INTERIMREPORT2021
August2021
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.Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredaspromisestoinvestors.Investorsandotherstakeholdersshallbesufficientlyawareoftheriskandshalldifferentiatebetweenplans/forecastsandpromises.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 10
PartIVCorporateGovernance ...... 28
PartVEnvironmentalandSocialResponsibility ...... 29
PartVISignificantEvents ...... 31
PartVIIShareChangesandShareholderInformation ...... 40
PartVIIIPreferredShares ...... 46
PartIXCorporateBonds ...... 47
PartXFinancialStatements ...... 48
DocumentsAvailableforReference(I)ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment(accountantincharge).(II)TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonthewebsitedesignatedbytheCSRCduringtheReportingPeriod.(III)TheInterimReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.ThisInterimReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Definitions
| Term | Definition |
| “Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HoushengInvestment | ChangzhouHoushengInvestmentCo.,Ltd. |
| HoushengAgriculturalEquipment | ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2021to30June2021 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr.(ifany) | 苏常柴 | ||
| CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
| Abbr.(ifany) | CHANGCHAICO.,LTD. | ||
| Legalrepresentative | ShiXinkun | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | HeJianjiang | |
| Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
| Tel. | （86）519-68683155 | |
| Fax | （86）519-86630954 | |
| Emailaddress | cchjj@changchai.com |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2020AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√Notapplicable
ThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfordisclosingtheCompany’speriodicreportsandtheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2020AnnualReport.
3.OtherRelevantInformationIndicatebytickmarkwhetheranychangeoccurredtootherrelevantinformationintheReportingPeriod.
□Applicable√Notapplicable
IVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.?Yes√No
| H12021 | H12020 | Change(%) | |
| Operatingrevenue(RMB) | 1,497,170,455.80 | 1,167,455,782.30 | 28.24% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 129,189,065.60 | 27,690,311.06 | 366.55% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 27,160,414.58 | 20,672,139.96 | 31.39% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -92,554,120.06 | -20,354,729.25 | --- |
| Basicearningspershare(RMB/share) | 0.2301 | 0.0493 | 366.73% |
| Dilutedearningspershare(RMB/share) | 0.2301 | 0.0493 | 366.73% |
| Weightedaveragereturnonequity(%) | 5.51% | 1.32% | 4.19% |
| 30June2021 | 31December2020 | Change(%) | |
| Totalassets(RMB) | 4,991,614,977.27 | 3,952,954,464.45 | 26.28% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 3,129,838,126.40 | 2,273,349,347.02 | 37.68% |
TotalsharecapitalattheendofthetradingdaybeforethedisclosureofthisReport:
| TotalsharecapitalattheendofthetradingdaybeforethedisclosureofthisReport(share) | 705,692,507 |
Fullydilutedearningspersharebasedonthelatesttotalsharecapitalabove:
| Dividendspaidforpreferenceshares | 0.00 |
| Interestpaidonperpetualbonds(RMB) | 0.00 |
| Fullydilutedearningspersharebasedonthelatest | 0.1831 |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
3.ReasonsforAccountingDataDifferencesAbove
□Applicable√Notapplicable
VIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
totalsharecapitalabove(RMB/share)Item
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets | -751,441.20 | |
| Governmentgrantsthroughprofitorloss(exclusiveofgovernmentgrantsgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 406,454.70 | |
| Gainorlossonfair-valuechangesofheld-for-tradingandderivativefinancialassetsandliabilities&incomefromdisposalofheld-for-tradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 122,886,868.11 | Increaseinthefairvalueofwholly-ownedsubsidiaryHoushengInvestment’sinterestinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andtheCompany’sinterestinJiangsuHoushengNewEnergyTechnologyCo.,Ltd. |
| Non-operatingincomeandexpenseotherthantheabove | 516,875.87 |
| Incometaxrebates | 6,307,493.08 | |
| Less:Incometaxeffects | 27,333,319.22 | |
| Non-controllinginterestseffects | 4,280.32 | |
| Total | 102,028,651.02 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod
1.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"ChangchaiRobin".Ourproductsaremainlyusedinagriculturalmachinery,smallconstructionmachinery,lightcommercialvehicles,generatorsetsandshipbornemachineryandotherfieldscloselyrelatedtopeople'slivelihood.IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.
2.MainProductsoftheCompanyOurmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
| Mainproducts | Graphicdisplay | Productdescription | Productfeatures | Applicationfields |
| Dieselengine | Ourdieselengineproductsincludesingle-cylinderdieselenginesandmulti-cylinderengines,coveringpowerrangefrom1.62kWto117.6kW,andcylinderdiametersfrom65mmto135mm,withoneormorecylinders.Besidessaleindomesticmarket,ourdieselenginesaresoldtoSoutheastAsia,SouthAmerica,theMiddleEastandAfrica. | Highpower,lowoilconsumption,lownoise,compactstructure,lowemission,goodreliability | Agriculturalmachinery,constructionmachinery,generatorsets,shipbornemachinery | |
| Gasolineengine | Ourgasolineenginesaremainlygeneral-purposesmallgasolineengines,coveringthepowerrangefrom1.5kWto7.0kW.Besidessaleindomesticmarket,ourgasolineenginesaresoldtoSoutheastAsia,theMiddleEast,EuropeandAmerica,Africa,Japanandothercountriesandregions. | Simplestructure,goodreliability,easymaintenance | Agriculturalmachinery,smallconstructionmachinery |
3.MajorBusinessModels
(1)R&DmodelWehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedon
marketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologycenterconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability.
(2)PurchasingmodelWeadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplandevelopedbythesalesdepartmentandtheproductionplandrawnupbytheproductiondepartmentintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchaseaccordingtosuchdemand.Meanwhile,thepurchasingdepartmentmakesaplantoguidepartsprocurementaccordingtothesalesdepartment'ssalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.
(3)ProductionmodelWeadoptthe"make-to-order"productionmanagementmodel.Thesalesdepartmentmakessalesplansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedbackofexistingcustomers'purchasingintentions.TheCompany'sproductiondepartmentmakestheproductionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanmadebythesalesdepartmentandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality.
(4)SalemodelWeadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory,andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.
4.IndustryFactsWeareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasagricultureandengineeringrepresentedbytractors,plantprotectionmachinery,andsmallconstructionmachinery.
(1)IndustrydevelopmentpatternandtrendChina'sdieselengineandgasolineengineindustrypresentsapatternofmultiplecompetitions.Asthestateadopts
increasinglystrictenvironmentalprotectionpolicyandtheemissionstandardscontinuetoupgrade,inparticularChinaVIemissionregulationsforgasolineenginesandChinaIVemissionregulationsfornon-roadmobilemachinerydieselengineswillbeimplemented,environmentalefficientdieselenginesandgasolineengineswillbecomethemainstreamtrendinthefuture.Themarketshareofdieselenginesandgasolineenginesisgraduallyconcentratedinasmallnumberoflarge-scaleenterpriseswithstrongtechnicalandfinancialstrength.Thepresentdevelopmenttrendofinternalcombustionengineindustryisasfollows:(1)energysavingandemissionreduction;(2)intelligentmanufacturing;(3)lightweight.Medium-andlow-endinternalcombustionengineswithlowtechnicalcontentandlowaddedvaluewillbegraduallysqueezedoutofthemarket.Theupgradeofemissionstandardsandthemarket'sdemandforhigh-endproductswilleliminatethosesmallenterpriseswithlowlevelofresearchanddevelopmentorlesstechnologyreserves.Theindustryleaderswillshowthetrendofincreasingmarketshareandrisinggrossprofitmargincenter,andhavethepowertofixthemarketpriceofcoreproducts.
(2)Industrysalesinthefirsthalfof2021FromJanuarytoJune2021,atotalof25,069,400internalcombustionenginesweresold,anincreaseof28.16%yearonyear;theaccumulativepowerwas1,359,437,700kW,anincreaseof25.54%yearonyear.FromJanuarytoJune,3,625,300dieselenginesweresold,anincreaseof22.78%yearonyear.Specifically,591,400enginesforconstructionmachineryweresold,anincreaseof35.98%fromthesameperiodlastyear;868,300enginesforagriculturalmachineryweresold,anincreaseof38.21%fromlastyear;22,600enginesforshipbornemachineryweresold,anincreaseof43.31%fromlastyear;142,100enginesforgeneratorsetsweresold,anincreaseof
15.32%fromlastyear.Inthefirsthalf,21,435,700gasolineinternalcombustionenginesweresold,anincreaseof
29.21%yearonyear.
(3)TheCompany'spositioninthemarketWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"ChangchaiRobin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsofChinaInternalCombustionEngineIndustryAssociation(CICEIA),asthelargestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomic
developmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
5.KeyPerformanceDrivers
(1)NationalpolicydriverInrecentyears,variousdepartmentsofthestatehaveintroducedaseriesofpreferentialpoliciestoencouragethedevelopmentofinternalcombustionengineindustry.Intermsofagriculturalmachinery,thecentralgovernmenthastakensolvingtheproblemsrelatingto"agriculture,ruralareasandfarmers"asthetoppriorityoftheworkofthePartyandthegovernment,andissuedaseriesofpoliciestobenefitfarmers,creatingagoodatmosphereforpromotingthedevelopmentofagricultureandeconomyandsocietyinruralareas;intermsofconstructionmachinery,thestrategyof"westerndevelopment",the"eightverticalandeighthorizontal"high-speedrailwaynetworkplanandthepolicyof"newruralconstruction"haveallcreatedagoodpolicyenvironmentfortheapplicationofinternalcombustionengineindownstreamconstructionmachinery.
(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborativeproduction,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargainingpower.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines.
(3)StableandefficientR&DteamWehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.
(4)Well-knownbrandwithmanywell-knowncustomers
TheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Ourdieselandgasolineengines,aspowersourcesofagriculturalmachinery,constructionmachineryandcommercialvehicles,showexcellentperformanceinpowerrange,reliability,powerperlitre,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnershiptimeexceeding15years.ManymainengineplantcustomersoftheCompanyarewell-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket.
6.MainBusinessOperationsintheReportingPeriodIntheReportingPeriod,theCompanysold437,000dieselengines,gasolineenginesandrelatedgeneratorsets,including77,400gasolineengines,generatingsalesrevenueofRMB1.497billion,anincreaseof28.24%yearonyear.IntermsofproductR&Dandsupportingfacilities,inthefieldofagriculturalmachinery,theCompanycompletedthedevelopmentcertificationforaseriesofmulti-cylinderengines,mechanicalpumpsingle-cylinderenginesthatmeettheNationalEmissionStandardIVforNon-RoadEngines,aswellasthecarryingsupportingtestofrelatedmodelsandterminalproductsofmultiplemainengineenterprises;furtherexpandedthesupportinggeneratorsetsofsingle-cylinderdieselengines,anddevelopedproductsforspecificfields.Inthenon-agriculturalfield,theCompanymadesmoothprogressinthesupportingandcarryingexperimentsofproductsinthemarine,mechanicalandelectricalfields,andsuchproductswererecognizedbyusers.Intermsofmarketservice,onthedomesticmarket,theCompanysolidifieditsexistingfieldsandmarkets,launchednewproductsandexplorednewmarketsindifferentareas,andcontinuedtoimproveservicesatisfaction.Asaresult,theCompanyhasmaintainedasteadilyenlargingmarketshare.Also,breakthroughwasmadeinrespectofsalesofkeyproductsinkeymarkets.Ontheforeigntrademarket,theexportofdieselenginesandrelatedgeneratorsets,fittingssawalargeincrease.Intermsofinternalmanagement,astherawmaterialpricessoaredathomeandabroad,theCompanystrictlycontrolledthepurchasecostandreducedcostsandexpendituresthroughaveragepricemethod,andachievedpositiveresults.Intermsofsafety,environmentalprotectionandanti-pandemicefforts,accordingtothenewrequirements,theCompanyrevisedtheresponsibilitysystemforsafeproduction,increasingtheresponsibilityofsafetyrisk
identificationandcontrolreportofrelevantdepartmentsandpersonnel.TheCompanycontinuedtoimplementathree-yearactiontoimproveproductionsafety.Inthefirsthalfofthisyear,morethan140potentialsafetyproblemswereinvestigatedandtreated.TheCompanyearnestlyimplementedmeasuresagainsttheCOVID-19indailyworkandfullyimplementedtheresponsibilityofanti-pandemiceffortsbyintensifyingcontrolmeasuresandorganizingemployeestogetvaccinatedvoluntarily.IntheReportingPeriod,themaincivilengineeringofChangchaiMachinerywasbasicallycompleted.Municipaloutfield,equipmentinstallation,decorationwereinfullswing.TheCompanylaunchedaprivateplacementdeal.Theproceedsweretransferredtoitsspecialaccountforverification,andthenewshareswerelistedon5July.IICoreCompetitivenessAnalysis
1.AdvantagesinBrandChangchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,ISO/TS16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenawardedtheTop50IndependentIndustrialBrandsinJiangsuProvinceforfourconsecutiveyears,andhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.IntheReportingPeriod,theCompanywasselectedasoneofTop100ChinaMachineryIndustryCompaniesandwasawardedthetitleofNationalModelEnterpriseforTrustworthyProductandServiceQuality.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnology
TheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.IntheReportingPeriod,theCompanywasratedasIntelligentAgriculturalMachineryManufacturingDemonstrationCompanyofJiangsuProvince;itskeytechnologyandequipmentprojectofpowertrainlow-frictionfunctionalsurfacedesignandmanufacturingwonthesecondprizeofScienceandTechnologyAwardofJiangsuProvince,itsindependentkeytechnologyandproductR&Dprojectofmediumandsmallpowernon-roadenginewonthefirstprizeforinnovationachievementin2020ChinaIndustry-University-ResearchInstituteCooperativeInnovationandPromotionAward.Besides,theCompany's4G33Tdieselengineand4G33V16commonraildieselenginewereidentifiedasChangzhouhigh-techproducts.Currently,theCompanyhasatotalof153patentsgrantedbyauthoritiesathomeandabroad,including13inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,26salesservicecenters,and713designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.
IIICoreBusinessAnalysisOverviewIndicatebytickmarkwhethertherelevantinformationisconsistentwithcontentsundertheheading“IPrincipalActivityoftheCompanyintheReportingPeriod”.
√Yes□NoSeecontentsundertheheading“PartIVMainBusinessesOfTheCompanyDuringTheReportingPeriod”.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
| H12021 | H12020 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 1,497,170,455.80 | 1,167,455,782.30 | 28.24% | |
| Costofsales | 1,284,114,729.46 | 985,842,718.68 | 30.26% | Risingpricesofraw |
| materials | ||||
| Sellingexpense | 66,174,807.84 | 63,392,358.52 | 4.39% | |
| Administrativeexpense | 48,008,480.48 | 35,609,030.74 | 34.82% | Increaseinemployeebenefitsduetoexpandedproductionandsales |
| Financecosts | 2,642,630.25 | -719,659.98 | - | |
| Incometaxexpense | 28,287,379.84 | 2,397,311.58 | 1,079.96% | Increaseingainsonfairvalue |
| R&Dexpense | 45,136,853.96 | 32,338,250.78 | 39.58% | UpgradingoftheemissionstandardsoftheCompany’sproducts |
| Netcashgeneratedfrom/usedinoperatingactivities | -92,554,120.06 | -20,354,729.25 | -- | Longerpaymentdaysformoremarkets |
| Netcashgeneratedfrom/usedininvestingactivities | -108,221,860.27 | -29,393,973.49 | -- | IncreaseinconstructioninprogressofChangchaiMachinery |
| Netcashgeneratedfrom/usedinfinancingactivities | 618,110,527.29 | -2,212,485.64 | -- | Arrivaloffundsraisedinaprivateplacement |
| Netincreaseincashandcashequivalents | 417,334,546.96 | -52,322,640.40 | -- |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
√Applicable□NotapplicableNetprofitincreasedsignificantlyyearonyear,primarilydrivenby:
1.Salesrevenueincreasedyearonyear,resultinginacorrespondingincreaseintheprofitsofprincipaloperations.
2.JiangsuLianceElectromechanicalTechnologyCo.,Ltd.(LianceTechnology),whereHoushengInvestment,awholly-ownedsubsidiaryoftheCompany,ownsastake,wentpublicontheSSESTARMarketinMay2021,andtheCompany’sinterestinLianceTechnologyisrecognizedas“financialassetsatfairvaluethroughprofitorloss”.ChangesintherelevantfairvalueresultedinanincreaseintheCompany’sprofit.
3.JiangsuHoushengNewEnergyTechnologyCo.,Ltd.(HoushengNewEnergy),wheretheCompanyownsastake,introducednewinvestor,resultedinanincreaseintherelevantfairvalue.Asaresult,theCompany’sprofitincreased.Breakdownofoperatingrevenue:
Unit:RMB
| H12021 | H12020 | Change(%) |
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) |
| Total | 1,497,170,455.80 | 100% | 1,167,455,782.30 | 100% | 28.24% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 1,475,253,150.96 | 98.54% | 1,149,231,063.13 | 98.44% | 28.37% |
| Other | 21,917,304.84 | 1.46% | 18,224,719.17 | 1.56% | 20.26% |
| Byproductcategory | |||||
| Dieselengines | 1,397,255,572.40 | 93.33% | 1,077,428,497.56 | 92.29% | 29.68% |
| Gasolineengines | 71,788,166.81 | 4.79% | 62,530,025.78 | 5.36% | 14.81% |
| Other | 28,126,716.59 | 1.88% | 27,497,258.96 | 2.36% | 2.29% |
| Byoperatingsegment | |||||
| Domestic | 1,273,749,146.74 | 85.08% | 1,014,992,139.15 | 86.94% | 25.49% |
| Overseas | 223,421,309.06 | 14.92% | 152,463,643.15 | 13.06% | 46.54% |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 1,475,253,150.96 | 1,265,262,684.42 | 14.23% | 28.37% | 29.79% | -0.94% |
| Byproductcategory | ||||||
| Dieselengines | 1,397,255,572.40 | 1,196,797,584.64 | 14.35% | 29.68% | 30.96% | -0.83% |
| Gasolineengines | 71,788,166.81 | 61,380,191.75 | 14.50% | 14.81% | 21.08% | -4.43% |
| Byoperatingsegment | ||||||
| Domestic | 1,273,749,146.74 | 1,067,150,296.23 | 16.22% | 25.49% | 27.39% | -1.25% |
| Overseas | 223,421,309.06 | 216,964,433.23 | 2.89% | 46.54% | 46.45% | 0.06% |
CorebusinessdataofthepriorperiodrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√NotapplicableIVAnalysisofNon-CoreBusinesses
□Applicable√NotapplicableVAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2021 | 31December2020 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 1,232,476,897.46 | 24.69% | 760,728,222.85 | 19.24% | 5.45% | Arrivaloffundsraisedinaprivateplacement |
| Accountsreceivable | 934,930,406.83 | 18.73% | 397,154,016.49 | 10.05% | 8.68% | Longerpaymentdaysformoremarketsandformulti-cylindercustomersmostlybeingsupportingmanufacturersforbiggermanufacturers |
| Inventories | 560,554,921.08 | 11.23% | 606,680,340.55 | 15.35% | -4.12% | |
| Investmentproperty | 45,135,155.63 | 0.90% | 46,239,326.03 | 1.17% | -0.27% | |
| Fixedassets | 427,241,110.69 | 8.56% | 454,181,555.68 | 11.49% | -2.93% | |
| Constructioninprogress | 107,315,205.76 | 2.15% | 66,502,432.41 | 1.68% | 0.47% | Wholly-ownedsubsidiaryChangchaiMachinerybeinginaconstructionperiod |
| Short-termborrowings | 43,385,577.76 | 0.87% | 35,944,517.15 | 0.91% | -0.04% | |
| Contractliabilities | 43,385,577.76 | 0.87% | 35,944,517.15 | 0.91% | -0.04% | |
2.MajorAssetsOverseas
□Applicable√Notapplicable
3.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesthroughequity | ImpairmentallowancemadeintheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(exclusiveofderivativefinancialassets) | 11,500,272.00 | 34,794,118.00 | 11,300,000.00 | 34,994,390.00 | ||||
| 2.Derivativefinancialassets | ||||||||
| 3.Investmentsinotherdebtobligations |
| 4.Investmentsinotherequityinstruments | 685,137,950.87 | 125,451,740.95 | 810,589,691.82 | |||||
| Subtotaloffinancialassets | 696,638,222.87 | 125,451,740.95 | 34,794,118.00 | 11,300,000.00 | 845,584,081.82 | |||
| Others | 98,732,938.63 | 122,554,092.00 | 29,850,000.00 | 485,389.43 | 250,651,641.20 | |||
| Totaloftheabove | 795,371,161.50 | 122,554,092.00 | 125,451,740.95 | 64,644,118.00 | 11,785,389.43 | 1,096,235,723.02 | ||
| Financialliabilities | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
4.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingamount | Reasonforrestriction |
| Monetaryassets | 213,108,704.75 | Securitydepositforbankacceptancebill,etc. |
| Buildings | 1,551,119.26 | Collateralforbankloan |
| Landuseright | 946,766.81 | Collateralforbankloan |
| Plantandequipment | 28,348,410.34 | Collateralforbankloan |
| Total | 243,955,001.16 | -- |
VIInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| TotalinvestmentamountintheReportingPeriod(RMB) | Totalinvestmentamountinthesameperiodoflastyear(RMB) | Change |
| 189,850,000.00 | 35,000,000.00 | 442.43% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
| Investee | Principalactivity | Wayofinvestment | Amountofinvestment | TheCompany’sinterest | Fundingsource | Co-investor | Termofinvestment | Typeoftheinvestee’sproducts | Investmentprogressasofthebalancesheetdate | Anticipatedreturnoninvestment | Investmentincome/lossintheReportingPeriod | Anylegalmatterinvolvedornot | Date(ifany)ofdisclosure | Index(ifany)todisclosedinformation |
| JiangsuChangchaiMachineryCo.,Ltd. | Internalcombustionengine,relatedgeneratorsetsandparts | Capitalcontribution | 160,000,000.00 | 100.00% | Self-funded | None | Long-term | Internalcombustionengine,relatedgeneratorsetsandparts | Theinputhasbeenmade | 0.00 | -889,838.80 | Not | 26February2019 | 2019-004 |
| Total | -- | -- | 160,000,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -889,838.80 | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
| Varie | Code | Nam | Initia | Accountin | Beginnin | Gain/loss | Accumula | Purchase | Soldin | Gain/loss | Ending | Acco | Fund |
| tyofsecurity | ofsecurity | eofsecurity | linvestmentcost | gmeasurementmethod | gcarryingamount | onfairvaluechangesintheReportingPeriod | tedfairvaluechangesrecordedinequity | dintheReportingPeriod | theReportingPeriod | intheReportingPeriod | carryingamount | untingtitle | ingsource |
| Domestic/foreignstock | 600166 | FotonMotor | 41,784,000.00 | Fairvaluemethod | 455,175,000.00 | 0 | 388,229,850.00 | 0 | 0 | 0 | 498,525,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 127,764,000.00 | 0 | 104,850,900.00 | 0 | 0 | 0 | 166,140,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 38,282,105.00 | 1,126,832.00 | 0 | 0 | 0 | 1,126,832.00 | 39,408,937.00 | Othernon-currentfinancialassets | Self-funded |
| Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 7,200,000.00 | 87,552,000.00 | 0 | 0 | 0 | 87,552,000.00 | 94,752,000.00 | Othernon-currentfinancialasset | Self-funded |
| s | |||||||||||||
| Domestic/foreignstock | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 160,744.76 | 125,260.00 | 0 | 0 | 0 | 125,260.00 | 286,004.76 | Othernon-currentfinancialassets | Self-funded |
| Total | 111,932,012.76 | -- | 628,581,849.76 | 88,804,092.00 | 493,080,750.00 | 0.00 | 0.00 | 88,804,092.00 | 799,111,941.76 | -- | -- | ||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIISaleofMajorAssetsandEquityInvestments
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInvestments
□Applicable√Notapplicable
VIIIPrincipalSubsidiariesandJointStockCompanies
√Applicable□NotapplicablePrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 170,296,649.91 | 87,474,117.37 | 123,696,522.97 | 1,291,282.25 | 1,419,424.67 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 77,123,720.11 | 50,017,587.11 | 30,469,040.22 | 561,456.09 | 487,938.46 |
| HoushengInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 153,400,362.59 | 126,376,755.21 | 0.00 | 88,866,740.56 | 66,662,221.08 |
| HoushengAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 25,220,507.37 | -6,861,215.19 | 9,619,648.13 | -595,808.99 | -595,808.99 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 117,853,518.76 | 100,683,102.92 | 71,788,166.81 | 1,085,914.45 | 517,329.63 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 300,000,000.00 | 297,678,528.57 | 297,122,160.39 | 0.00 | -889,838.80 | -889,838.80 |
| XingshengRealEstateManagement | Subsidiary | Realestateservice | 1,000,000.00 | 6,379,341.46 | 3,945,282.16 | 2,549,484.46 | 550,368.72 | 536,609.50 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
□Applicable√NotapplicableOtherinformationaboutprincipalsubsidiariesandjointstockcompanies:
ChangzhouHoushengInvestmentCo.,Ltd.(HoushengInvestment),awholly-ownedsubsidiaryoftheCompany,reportedanetprofitofRMB66.6622millioninH12021,up14,302.41%yearonyear.ThisismainlybecauseJiangsuLianceElectromechanicalTechnologyCo.,Ltd.(LianceTechnology),whereHoushengInvestmentownsastake,wentpublicontheSSESTARMarketinMay2021,andtheCompany’sinterestinLianceTechnologyisrecognizedas“financialassetsatfairvaluethroughprofitorloss”.
IXStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
XRisksFacingtheCompanyandCountermeasures
1.Marketrisk:
Ourdieselenginesarewidelyusedinnon-roadfieldssuchasagriculturalmachinery.Non-roadmobilemachineryisgreatlyaffectedbymacroeconomicfluctuations.Inrecentyears,theprevalenceofglobaltradeprotectionism,thespreadofCOVID-19,abnormalfluctuationsininternationalfinancialmarketsandotherfactorshavebroughtsomeuncertaintytotheglobalmacroeconomicoutlook.IfthemacroenvironmentathomeandabroadhassignificantadversechangesandtheCompanyfailstoadjustitsoperatingstrategyandfindnewgrowthpointsinatimelymanner,suchadversechangesinthemacro-economicenvironmentmayhaveacertainnegativeimpactontheCompany.Countermeasures:First,theCompanyfocusesonthecertificationofsingle-cylinderandmulti-cylindernon-roadenginesthatmeettheNationalEmissionStandardIVforNon-RoadEngines,aswellasthecalibrationoptimizationofenginesundertheNationalEmissionStandardIVforNon-RoadEnginesandprototypecarryingsupportingverification.Second,theCompanyintensifieseffortsintheR&Dinnewareas,keyproductdevelopmentandsupportingwork.Third,theCompanymakesactiveuseofthecapitalplatformtopushaheadcapitaloperationprojectsinasteadyandorderlymannertoservetheCompany'sdevelopment.
2.Industrialrisk:
Inrecentyears,thestateadvocatesenergyconservationandemissionreduction.Newenergypowerrepresentedbypureelectric,hybridpowerandhydrogenfuelpowerhasgrabbedthemarketshareofdieselenginetoacertainextent.Atpresent,newenergypowerismainlyusedinvehicles.Itsuseinagriculturalmachineryisstillfacingproblemssuchashighcostandcomplexoperatingenvironment.However,asbreakthroughshavebeenmadeinnewenergybatterytechnology,thelocalapplicationscenarioofdieselenginemaybereplacedbynewenergypower.Countermeasures:Withregardtothelayoutofnewenergyindustry,theCompanyactivelypromotesprojectconstructionanddevelopment.Meanwhile,theCompanymakespropereffortsinproductR&Dandexpandnewdevelopmentdirectionsandsupportingareas.
3.TheriskofrawmaterialpricefluctuationsTheCompany'srawmaterialpurchasepriceismainlyaffectedbyfactorssuchasmacroeconomiccycle,industrialpolicyadjustment,marketsupplyanddemandchanges.IfthemarketpriceoftheCompany'srawmaterialsfluctuatessubstantiallyandtheCompanyfailstoreducethenegativeimpactofpricefluctuationsthrough
reasonablepurchaseplans,thepricefluctuationsofrawmaterialsmayhaveanegativeimpactontheCompany'sbusinessperformance.Countermeasures:Bystrengtheninginventoryandplanmanagement,costcontrolandothermeasures,theCompanyfurtherimprovesouroperatingefficiencyandreducetheupwardpressureoncosts.
4.Foreigntraderisk:
Againstthebackgroundsofcomplexandchangeableglobaleconomicenvironment,theepidemicbringsmoretoughchallengestotheoperationofforeigntrades.Theexportofproductsisaffectedtosomeextentduetoincreasingunstablefactors.Countermeasures:Wewillstrengthenthemaintenanceandmanagementofoverseaskeymarketsandcustomers,intensifyeffortsinthedevelopmentofemergingmarketsandnewusers,andstrivetoimprovethesalesofhighvalue-addedproducts.
5.Talentrisk:
Inrecentyears,astheCompanyhasbeencommittedtoimprovingoperationalefficiencyandtechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend,thedemandforprofessionalandseniormanagementpersonnelisgreatlyincreased.IftheCompanyisnotabletocontinuetoattractcoretechnologytalentintermsofpaylevels,incentives,andcorporateculture,theCompanywillbeexposedtoariskofashortageofhigh-endtalent,whichwillhaveanegativeimpactonitsbusinessdevelopment.Countermeasures:First,theCompanyintroducesallkindsofhigh-rankingtalentsthroughvarietiesofchannelsandstrengthenpersonneltraining.Second,theCompanyalsomakesoptimizationintheperformanceappraisalsystemandincentivepaysystemandstrengthensthetrainingofemployeestoreducethelossofprofessionalsandstrengthenpersonnelfortheconstructionoftalentedpersonnelteams.
PartIVCorporateGovernanceIAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Dateofdisclosure | Indextodisclosedinformation |
| The2020AnnualGeneralMeeting | AnnualGeneralMeeting | 32.04% | 7May2021 | 8May2021 | AnnouncementNo.2021-028ontheResolutionsofthe2020AnnualGeneralMeetingdisclosedonwww.cninfo.com.cn |
2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferenceShareholderswithResumedVotingRights
□Applicable√Notapplicable
IIChangeofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableNochangesoccurredtotheCompany’sdirectors,supervisorsandseniormanagementduringtheReportingPeriod.Fortheirinformation,seethe2020AnnualReport.IIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoIISocialResponsibility
IntheReportingPeriod,bytaking"ProvideGreenPowerforABetterLife"asitscorporatemissionand"CustomerFirst,StaffFirst,RewardingShareholdersandBenefitingtheSociety"asitscorevalue,theCompanystucktostandardizedandprudentoperation,earnestlyfulfilledtheresponsibilitiesandobligationsduetoshareholders,employees,consumers,suppliersandotherparties,andactivelyparticipatedintheconstructionofaharmonioussociety.TheCompanystrictlycomplieswithlawsandregulations,requirementsofnormativedocumentsongovernanceoflistedcompaniesandtheArticlesofAssociation.Theshareholders'meetings,meetingsoftheBoardofDirectorsandtheBoardofSupervisorsanddecision-makingproceduresoftheCompanyarelegalandcompliant.TheCompanyexercisesitspowersinstrictaccordancewithrelevantlawsandregulationstoeffectivelyprotecttherightsandinterestsofallshareholders.TheCompany'sinformationdisclosureislegalandcompliant,andthecontentdisclosedistrue,accurateandcompletetosafeguardshareholders'righttoknow,andprovideinvestorswithsufficientinvestmentbasis.IntheReportingPeriod,theCompanyconductedonlineresultspresentationofAnnualReport2020,earnestlyorganizedthemanagementofinvestors,communicatedwithshareholderseffectively,accuratelyandcompletely,andtreatedallshareholdersfairly.TheCompanyattachesgreatimportancetothemanagementofinsiderinformation.IntheReportingPeriod,therewasnoinsidertradingordamagetotheinterestsofshareholders.IntheReportingPeriod,theCompanywasawardedthetitleofNationalModelEnterpriseforTrustworthyProductandServiceQuality,StableQualifiedProductinNationalQualityInspection,amongothers.TheCompanyhasestablishedagoodlong-termpartnershipwithsuppliersandcustomers,iscommittedtoimprovingproductqualityandcustomersatisfaction,andhasbeenrecognizedandhonoredbymanycustomersandqualitysuppliers.TheCompanypreferssupplierswithadvancedtechnologyandenvironmentalprotectionproducts,commitstogreencultureandenvironmentalprotection,supportsthetechnologicalgrowthandprogressofsuppliers,andcreatesavirtuouscycleofsupplyrelations.Accordingtothenationalpolicyandactualsituation,theCompanyactivelypromotestheR&Dofhigh-qualityproducts,acceleratesproductupdate,andpushesaheadtheproductsupportingapplicationofproductstoservetheconstructionofagriculture,ruralareasandfarmers.TheCompanycontinuestoimplementenergyconservationandemissionreductionmeasurestoimproveenergyefficiency,reduceconsumptionandprotecttheenvironment.Meanwhile,theCompany'srefinancingisproceedingsmoothly.Theissuanceofnon-publicshareshasbeencompleted,andrelatedprojectsarebeingpromotedinanorderlymanner.TheCompanyactivelycarriesoutcharityactivitiestogivebacktosociety.Itactivelyparticipatesinrelevantcharityactivitiesinthelocality.TheCompanyalwaysremembersitssocialresponsibilities.DuringtheReporting
Period,theCompanymadecontributionstosocialdevelopmentwithpracticalactions.Forexample,itparticipatedin"DreamReformer"CareProgram,madedonations,caredfortroubledteenagers,andcontributedtoruralrevitalization.
PartVISignificantEvents
ICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutshareholdingreduction | 1.ThecompanyanditscontrolledrelatedpartieshavenotreducedtheirholdingsofsharesofChangchaiCompanyfromthesixmonthspriortotheannouncementofthedecisionoftheBoardofDirectorsofChangchaiCompany,Limited("ChangchaiCompany")concerningtheproposaltoconsiderthenon-publicofferingofsharestothedateofissuanceofthisLetterofCommitment.2.ThecompanyanditscontrolledrelatedpartieshavenoplantoreducetheirholdingsofsharesofChangchaiCompanyfromthedateofissuanceofthisLetterofCommitmenttosixmonthsafterthecompletionofthisissuance. | 29September2020 | 10October2019-30June2022 | Ongoing |
| Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.Thecompany'sfundsforsubscribingforthesharesprivatelyofferedbyChangchaiCompany,Limited(ChangchaiCompany)arethecompany'sownfundsorfundsraisedbythecompanyinlegalforms.Thesourcesofthefundsarelegalandthecompanyhasfullandeffectivedisposalrights.Thereisnopublicoffering,proxyholding,structuredarrangementordirectorindirectuseoffundsofChangchaiCompanyanditsaffiliatesforthissubscription.ThereisnoviolationoftherelevantprovisionsoftheDetailedImplementingRulesfortheNon-public | 29September2020 | 21September2020-21September2021 | Expired |
| OfferingofStocksofListedCompaniesortheMeasuresfortheAdministrationoftheOfferingandUnderwritingofSecurities.2.ThecompanyisresponsiblefortheauthenticityoftheforegoingcommitmentsandguaranteestobearthelossescausedtoChangchaiCompanyduetothebreachoftheforegoingcommitments. | ||||||
| Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutsharetradingrestriction | ItwillnottransferthesharesithasobtainedintheprivateplacementofChangchaiwithin36monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5July2024 | Ongoing |
| Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.ItundertakesnottointerfereintheCompany'soperationandmanagementactivitiesbeyonditsauthorityandnottoencroachontheCompany'sinterests;2.Itundertakesnottotransferbenefitstootherentitiesorindividualsfreeofchargeoronunfairterms,nortoimpairtheinterestsoftheCompanybyanyothermeans;3.AftertheissuanceofthisLetterofCommitmentandbeforethecompletionoftheCompany'snon-publicofferingofshares,iftheChinaSecuritiesRegulatoryCommission(CSRC)makesothernewregulatoryprovisionsonthereturnfillingmeasuresandcommitments,andtheaforesaidcommitmentscannotmeetsuchprovisionsoftheCSRC,itundertakestoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC;4.ItundertakestoeffectivelyimplementtheCompany'smeasurestofillthereturnandanycommitmentsmadethereon.IftheCompanybreachessuchcommitmentsandcauseslossestotheCompanyortheinvestors,theCompanyiswillingtocompensatetheCompanyortheinvestorsaccordingtolaw. | 11April2020 | 11April2020-31December9999 | Ongoing |
| Commitmentsmadeinrefinancing | UBSAG,CaitongFundManagementCo.,Ltd.,ChangzhouTraffic | Aboutsharetradingrestricti | I/WeundertakethatI/wewillnottransferthesharesI/wehaveobtainedintheprivateplacementofChangchaiwithin6monthsstartingfromthedatewhentheprivate | 5July2021 | 5July2021-5Januar | Ongoing |
| ConstructionInvestmentDevelopmentGeneralCompany,ChenBeiwen,GuotaiAssetManagementCo.,Ltd.,JiangxiJintouIndustrialDevelopmentCo.,Ltd.,LiXueqin,NanhuaFundCo.,Ltd.,Enjoy(Ningbo)AssetManagementL.P.,NuodeAssetManagementCo.,Ltd.,SunMeichun,MinmetalsSecuritiesCo.,Ltd.,YaoJianquan,ChinaNationalGoldGroupAssetManagementCo.,Ltd.,andZhouZhiheng | on | placementofA-sharesisallowedforpublictrading. | y2022 | |||
| Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | Aboutdividends | RewardsPlanforShareholdersinNextThreeYears(2020-2022)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | 8May2020 | Year2020-2022 | Ongoing |
| Fulfilledontimeornot | Yes | |||||
| Specific | N/A | |||||
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsareunaudited.VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable√Notapplicable
VIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIIILegalMatters
Significantlawsuitsandarbitrations:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
□Applicable√NotapplicableIXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XCreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController
√Applicable□NotapplicableThedefactocontrolleroftheCompanyisSASACofChangzhouPeople’sGovernmentandthecontrollingshareholderofitisChangzhouInvestmentGroupCo.,Ltd.Thereisnosuchcasethatthecontrollingshareholderfailstoperformanylegallyeffectivejudgmentofcourtsortopayoffmatureddebtswithalargeamount.XIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorDisposalofAssetsorEquityInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.AmountsDuetoandfromRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies,orFinanceCompaniesControlledbytheCompany
□Applicable√NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompany,financecompanycontrolledbytheCompanyoranyotherrelatedparties.
6.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| GuaranteesprovidedbytheCompanyastheparentforitssubsidiaries | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 15April2021 | 2,000 | 7May2021 | 2,000 | Jointliability | 1year | No | No |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 2,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 2,000 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,000 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 2,000 | |||||
| Guaranteesbetweensubsidiaries | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| 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 | 0.64% |
| Ofwhich: | |
| Balanceofguaranteesprovidedforshareholders,thedefactocontrollerandtheirrelatedparties(D) | 0 |
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforentitieswithanover70%debt/assetratio(E) | 2,000 |
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 |
| Totalofthethreeamountsabove(D+E+F) | 2,000 |
| Possibilityofhavingtoexecutejointliabilityonoutstandingguarantees(ifany) | N/A |
| Irregularitiesintheprovisionofguaranteestoexternalparties(ifany) | N/A |
3.CashEntrustedforWealthManagement
√Applicable□Notapplicable
Unit:RMB’0,000
| Type | Fundingsource | Amount | Undueamount | Unrecoveredoverdueamount | Impairmentallowanceforunrecoveredoverdueamount |
| Brokerfinancialproducts | Self-funded | 1,940.00 | 980.00 | 0 | 0 |
| Total | 1,940.00 | 980.00 | 0 | 0 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidityornoprincipalprotection:
□Applicable√NotapplicableSituationwheretheprincipalisexpectedlyirrecoverableoranimpairmentmaybeincurred:
□Applicable√Notapplicable
4.SignificantContinuingContracts
□Applicable√Notapplicable
5.OtherSignificantContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIIOtherSignificantEvents
√Applicable□Notapplicable
1.Non-publicofferingofsharesOn9April2020,the24thmeetingofthe8thboardofdirectorsoftheCompanydiscussedandapprovedtheNon-publicOfferingPlanoftheCompanyfor2020.TheCompanyintendedtomakenon-publicissuanceofdomesticcommonshareslistedinRMBtospecificobjects,andthismatterwasapprovedbythecontrollingshareholderChangzhouInvestmentGroupCo.,Ltd.andwasreviewedandadoptedinthemeetingofshareholdersof2019.On18September2020,thetemporarymeetingoftheboardofdirectorsoftheCompanydiscussedandapprovedtherelevantrevisionmattersconcerningnon-publicissuanceofshares,theCompanysupplementedandimprovedtheforesaidplanaccordingtotherelevantrevisionmatters,andpreparedtheNon-publicOfferingPlanoftheCompanyfor2020(RevisionVersion),whichwasdiscussedandapprovedinthesecondtemporarymeetingofshareholdersin2020.On17December2020,theCompanyreceivedtheReplyconcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCompany,Limited(ZJXK[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.TheCompany'soffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.TheissuingpricewasRMB4.40pershare,totalamountraisedwasRMB634,999,936.40,andthenetamountraisedwasRMB622,499,996.40.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.Fordetails,pleaserefertotheReportonNon-publicOfferingbyChangchaiCompany,LimitedandListingBulletindisclosedbytheCompanyonwww.cninfo.com.cnon1July2021.XIVSignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
| 1.Restrictedshares | 0 | 0.00% | 0 | 0.00% | |||||
| 1.1Sharesheldbygovernment | 0 | 0.00% | 0 | 0.00% | |||||
| 1.2Sharesheldbystate-ownedlegalpersons | 0 | 0.00% | 0 | 0.00% | |||||
| 1.3Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0.00% | |||||
| Amongwhich:Sharesheldbydomesticlegalpersons | 0 | 0.00% | 0 | 0.00% | |||||
| Sharesheldbydomesticnaturalpersons | 0 | 0.00% | 0 | 0.00% | |||||
| 1.4Sharesheldbyforeigninvestors | 0 | 0.00% | 0 | 0.00% | |||||
| Amongwhich:Sharesheldbyforeignlegalpersons | 0 | 0.00% | 0 | 0.00% | |||||
| Sharesheldbyforeignnaturalpersons | 0 | 0.00% | 0 | 0.00% | |
| 2.Unrestrictedshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% | |
| 2.1RMB-denominatedordinaryshares | 411,374,326 | 73.28% | 411,374,326 | 73.28% | |
| 2.2Domesticallylistedforeignshares | 150,000,000 | 26.72% | 150,000,000 | 26.72% | |
| 2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0.00% | |
| 2.4Other | 0 | 0.00% | 0 | 0.00% | |
| 3.Totalshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% |
Reasonsforthesharechanges:
□Applicable√NotapplicableApprovalofthesharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
√Applicable□NotapplicableOn17December2020,theCompanyreceivedtheReplyconcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCompany,Limited(ZJXK[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.TheCompany'soffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.TheissuingpricewasRMB4.40pershare,totalamountraisedwasRMB634,999,936.40,andthenetamountraisedwasRMB622,499,996.40.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.Fordetails,pleaserefertotheReportonNon-publicOfferingbyChangchaiCompany,LimitedandListingBulletindisclosedbytheCompanyonwww.cninfo.com.cnon1July2021.Assuch,thetotalsharecapitaloftheCompanyhasincreasedfrom561,374,326sharesto705,692,507shares,including144,318,181restrictedshares.
2.ChangesinRestrictedShares
□Applicable√Notapplicable
IIIssuanceandListingofSecurities
□Applicable√NotapplicableIIIShareholdersandTheirHoldingsasatthePeriod-End
Unit:share
| Numberofordinaryshareholders | 52,417 | Numberofpreferenceshareholderswithresumedvotingrights(ifany) | 0 | |||||||
| 5%orgreaterordinaryshareholdersorthetop10ordinaryshareholders | ||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Ordinarysharesheld | Increase/decreaseintheReportingPeriod | Restrictedordinarysharesheld | Unrestrictedordinarysharesheld | Sharesinpledgeorfrozen | |||
| Status | Shares | |||||||||
| ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 30.43% | 170,845,236 | 170,845,236 | ||||||
| KGIAsiaLimited | Foreignlegalperson | 0.55% | 3,111,695 | 3,111,695 | ||||||
| ChenJian | Domesticnaturalperson | 0.37% | 2,069,000 | 2,069,000 | ||||||
| ChinaConstructionBankCorporation-FirstStateCindaNewEnergyIndustryStockTypeSecuritiesInvestmentFund | Other | 0.29% | 1,601,347 | 1,601,347 | ||||||
| LiSuinan | Domesticnaturalperson | 0.28% | 1,548,100 | 1,548,100 | ||||||
| HuangGuoliang | Domesticnaturalperson | 0.27% | 1,528,891 | 1,528,891 | ||||
| IndustrialandCommercialBankofChina－HuaAnAnxinConsumptionServiceStockTypeSecuritiesInvestmentFund | Other | 0.26% | 1,450,493 | 1,450,493 | ||||
| ChenXiaojing | Domesticnaturalperson | 0.26% | 1,433,000 | 1,433,000 | ||||
| XueHong | Domesticnaturalperson | 0.23% | 1,277,300 | 1,277,300 | ||||
| TaoXiaofang | Domesticnaturalperson | 0.22% | 1,220,000 | 1,220,000 | ||||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderinarightsissue(ifany) | N/A | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | |||||||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | N/A | |||||||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | |||||||
| Top10unrestrictedshareholders | ||||||||
| Nameofshareholder | Unrestrictedordinarysharesheld | Sharesbyclass | ||||||
| Class | Shares | |||||||
| ChangzhouInvestmentGroup | 170,845,236 | RMB-denominated | 170,845,236 | |||||
| Co.,Ltd | ordinaryshare | ||
| KGIAsiaLimited | 3,111,695 | Domesticallylistedforeignshare | 3,111,695 |
| ChenJian | 2,069,000 | RMB-denominatedordinaryshare | 2,069,000 |
| ChinaConstructionBankCorporation-FirstStateCindaNewEnergyIndustryStockTypeSecuritiesInvestmentFund | 1,601,347 | RMB-denominatedordinaryshare | 1,601,347 |
| LiSuinan | 1,548,100 | Domesticallylistedforeignshare | 1,548,100 |
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 |
| IndustrialandCommercialBankofChina－HuaAnAnxinConsumptionServiceStockTypeSecuritiesInvestmentFund | 1,450,493 | RMB-denominatedordinaryshare | 1,450,493 |
| ChenXiaojing | 1,433,000 | RMB-denominatedordinaryshare | 1,433,000 |
| XueHong | 1,277,300 | Domesticallylistedforeignshare | 1,277,300 |
| TaoXiaofang | 1,220,000 | RMB-denominatedordinaryshare | 1,220,000 |
| Relatedoracting-in-concertpartiesamongthetop10unrestrictedordinaryshareholders,aswellasbetweenthetop10unrestrictedordinaryshareholdersandthetop10ordinaryshareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholdersChenJianandChenXiaojingheld150,000and1,211,800sharesrespectivelyintheCompanythroughtheirmarginaccounts. | ||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
IVChangeoftheControllingShareholderortheDeFactoController
ChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXCorporateBonds
□Applicable√NotapplicableNocorporatebondsintheReportingPeriod.
PartXFinancialStatementsIIndependentAuditor’sReport
Aretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes√NoTheseinterimfinancialstatementshavenotbeenauditedbyanindependentauditor.IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
30June2021
Unit:RMB
| Item | 30June2021 | 31December2020 |
| Currentassets: | ||
| Monetaryassets | 1,232,476,897.46 | 760,728,222.85 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 34,994,390.00 | 11,500,272.00 |
| Derivativefinancialassets | ||
| Notesreceivable | 341,957,460.75 | 600,140,938.05 |
| Accountsreceivable | 934,930,406.83 | 397,154,016.49 |
| Accountsreceivablefinancing | ||
| Prepayments | 9,702,974.05 | 9,357,840.75 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 2,537,634.11 | 6,212,062.80 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 560,554,921.08 | 606,680,340.55 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 23,854,335.78 | 27,299,362.72 |
| Totalcurrentassets | 3,141,009,020.06 | 2,419,073,056.21 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 810,589,691.82 | 685,137,950.87 |
| Othernon-currentfinancialassets | 250,651,641.20 | 98,732,938.63 |
| Investmentproperty | 45,135,155.63 | 46,239,326.03 |
| Fixedassets | 427,241,110.69 | 454,181,555.68 |
| Constructioninprogress | 107,315,205.76 | 66,502,432.41 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 156,529,478.36 | 158,870,631.71 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | 51,372.94 | 13,693.20 |
| Deferredincometaxassets | 4,231,873.15 | 4,231,873.15 |
| Othernon-currentassets | 48,860,427.66 | 19,971,006.56 |
| Totalnon-currentassets | 1,850,605,957.21 | 1,533,881,408.24 |
| Totalassets | 4,991,614,977.27 | 3,952,954,464.45 |
| Currentliabilities: | ||
| Short-termborrowings | 17,000,000.00 | 22,000,000.00 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 697,664,500.00 | 595,346,000.00 |
| Accountspayable | 636,843,860.83 | 612,757,392.46 |
| Advancesfromcustomers | 661,612.17 | |
| Contractliabilities | 43,385,577.76 | 35,944,517.15 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 14,763,552.71 | 50,127,161.47 |
| Taxespayable | 4,567,958.40 | 2,869,485.41 |
| Otherpayables | 237,746,198.81 | 197,545,076.08 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 6,438,607.72 | 5,233,947.12 |
| Totalcurrentliabilities | 1,658,410,256.23 | 1,522,485,191.86 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 56,949,737.60 | 56,949,737.60 |
| Deferredincometaxliabilities | 126,752,882.96 | 80,671,598.82 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 183,702,620.56 | 137,621,336.42 |
| Totalliabilities | 1,842,112,876.79 | 1,660,106,528.28 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 640,676,218.40 | 164,328,665.43 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 532,116,738.05 | 425,482,758.24 |
| Specificreserve | 18,812,986.55 | 18,812,986.55 |
| Surplusreserves | 325,451,531.14 | 325,451,531.14 |
| Generalreserve | ||
| Retainedearnings | 907,088,145.26 | 777,899,079.66 |
| TotalequityattributabletoownersoftheCompanyastheparent | 3,129,838,126.40 | 2,273,349,347.02 |
| Non-controllinginterests | 19,663,974.08 | 19,498,589.15 |
| Totalowners’equity | 3,149,502,100.48 | 2,292,847,936.17 |
| Totalliabilitiesandowners’equity | 4,991,614,977.27 | 3,952,954,464.45 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2021 | 31December2020 |
| Currentassets: | ||
| Monetaryassets | 1,085,715,541.07 | 682,322,659.41 |
| Held-for-tradingfinancialassets | 12,920,200.00 | |
| Derivativefinancialassets | ||
| Notesreceivable | 332,587,460.75 | 581,230,938.05 |
| Accountsreceivable | 858,268,721.66 | 317,828,161.25 |
| Accountsreceivablefinancing | ||
| Prepayments | 6,887,234.80 | 6,592,567.26 |
| Otherreceivables | 20,870,644.87 | 24,327,355.36 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 435,993,673.39 | 475,688,026.57 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 7,833,885.68 | 17,521,203.46 |
| Totalcurrentassets | 2,761,077,362.22 | 2,105,510,911.36 |
| Non-currentassets: | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 535,752,730.03 | 375,752,730.03 |
| Investmentsinotherequityinstruments | 810,589,691.82 | 685,137,950.87 |
| Othernon-currentfinancialassets | 112,500,000.00 | 52,500,000.00 |
| Investmentproperty | 45,135,155.63 | 46,239,326.03 |
| Fixedassets | 346,477,083.14 | 369,194,314.03 |
| Constructioninprogress | 17,329,608.93 | 26,195,189.06 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 67,142,576.87 | 68,088,982.37 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 4,179,544.86 | 4,179,544.86 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 1,939,106,391.28 | 1,627,288,037.25 |
| Totalassets | 4,700,183,753.50 | 3,732,798,948.61 |
| Currentliabilities: | ||
| Short-termborrowings | 5,000,000.00 | |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 695,244,000.00 | 589,534,000.00 |
| Accountspayable | 591,767,177.12 | 550,360,564.07 |
| Advancesfromcustomers | 661,612.17 | |
| Contractliabilities | 37,986,177.33 | 32,344,514.86 |
| Employeebenefitspayable | 6,631,467.46 | 42,455,158.67 |
| Taxespayable | 2,036,444.92 | 1,099,861.63 |
| Otherpayables | 212,857,500.24 | 184,513,545.20 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 2,424,649.62 | 2,426,575.40 |
| Totalcurrentliabilities | 1,548,947,416.69 | 1,408,395,832.00 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions |
| Deferredincome | 56,949,737.60 | 56,949,737.60 |
| Deferredincometaxliabilities | 99,340,453.77 | 75,460,192.63 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 156,290,191.37 | 132,409,930.23 |
| Totalliabilities | 1,705,237,608.06 | 1,540,805,762.23 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 659,418,700.67 | 183,071,147.70 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 532,116,738.05 | 425,482,758.24 |
| Specificreserve | 18,812,986.55 | 18,812,986.55 |
| Surplusreserves | 325,451,531.14 | 325,451,531.14 |
| Retainedearnings | 753,453,682.03 | 677,800,436.75 |
| Totalowners’equity | 2,994,946,145.44 | 2,191,993,186.38 |
| Totalliabilitiesandowners’equity | 4,700,183,753.50 | 3,732,798,948.61 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12021 | H12020 |
| 1.Revenue | 1,497,170,455.80 | 1,167,455,782.30 |
| Including:Operatingrevenue | 1,497,170,455.80 | 1,167,455,782.30 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 1,452,332,780.19 | 1,123,014,304.27 |
| Including:Costofsales | 1,284,114,729.46 | 985,842,718.68 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 6,255,278.20 | 6,551,605.53 |
| Sellingexpense | 66,174,807.84 | 63,392,358.52 |
| Administrativeexpense | 48,008,480.48 | 35,609,030.74 |
| R&Dexpense | 45,136,853.96 | 32,338,250.78 |
| Financecosts | 2,642,630.25 | -719,659.98 |
| Including:Interestexpense | 4,437,018.11 | 3,340,575.91 |
| Interestincome | 4,502,088.58 | 2,792,152.75 |
| Add:Otherincome | 406,454.70 | 2,677,964.82 |
| Returnoninvestment(“-”forloss) | 8,524,500.87 | 5,384,597.04 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 122,554,092.00 | |
| Creditimpairmentloss(“-”forloss) | -12,495,432.28 | -5,979,021.29 |
| Assetimpairmentloss(“-”forloss) | -5,950,895.20 | -16,343,805.00 |
| Assetdisposalincome(“-”forloss) | -751,441.20 | 10,977.61 |
| 3.Operatingprofit(“-”forloss) | 157,124,954.50 | 30,192,191.21 |
| Add:Non-operatingincome | 850,183.59 | 468,290.78 |
| Less:Non-operatingexpense | 333,307.72 | 395,375.68 |
| 4.Profitbeforetax(“-”forloss) | 157,641,830.37 | 30,265,106.31 |
| Less:Incometaxexpense | 28,287,379.84 | 2,397,311.58 |
| 5.Netprofit(“-”fornetloss) | 129,354,450.53 | 27,867,794.73 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 129,354,450.53 | 27,867,794.73 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 129,189,065.60 | 27,690,311.06 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 165,384.93 | 177,483.67 |
| 6.Othercomprehensiveincome,netoftax | 106,633,979.81 | -59,691,806.33 |
| AttributabletoownersoftheCompanyastheparent | 106,633,979.81 | -59,691,806.33 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 106,633,979.81 | -59,691,806.33 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 106,633,979.81 | -59,691,806.33 |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations |
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 235,988,430.34 | -31,824,011.60 |
| AttributabletoownersoftheCompanyastheparent | 235,823,045.41 | -32,001,495.27 |
| Attributabletonon-controllinginterests | 165,384.93 | 177,483.67 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.2301 | 0.0493 |
| 8.2Dilutedearningspershare | 0.2301 | 0.0493 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12021 | H12020 |
| 1.Operatingrevenue | 1,410,448,746.19 | 1,081,469,803.12 |
| Less:Costofsales | 1,208,764,033.69 | 923,422,022.77 |
| Taxesandsurcharges | 4,635,318.65 | 5,359,697.76 |
| Sellingexpense | 61,699,594.15 | 57,376,397.80 |
| Administrativeexpense | 39,946,732.13 | 26,796,437.18 |
| R&Dexpense | 44,159,551.96 | 31,647,738.36 |
| Financecosts | 879,974.12 | -1,390,764.55 |
| Including:Interestexpense | 3,961,226.02 | 2,303,571.52 |
| Interestincome | 4,225,564.97 | 2,529,399.84 |
| Add:Otherincome | 324,000.00 | 1,931,604.92 |
| Returnoninvestment(“-”forloss) | 8,191,724.76 | 4,983,988.73 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 33,750,000.00 | |
| Creditimpairmentloss(“-”forloss) | -12,089,483.86 | -5,440,782.47 |
| Assetimpairmentloss(“-”forloss) | 903,169.33 | -15,816,298.12 |
| Assetdisposalincome(“-”forloss) | -751,441.20 | 10,781.75 |
| 2.Operatingprofit(“-”forloss) | 80,691,510.52 | 23,927,568.61 |
| Add:Non-operatingincome | 155,765.48 | 238,948.92 |
| Less:Non-operatingexpense | 31,065.09 | 4,025.58 |
| 3.Profitbeforetax(“-”forloss) | 80,816,210.91 | 24,162,491.95 |
| Less:Incometaxexpense | 5,162,965.63 | 609,572.51 |
| 4.Netprofit(“-”fornetloss) | 75,653,245.28 | 23,552,919.44 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 75,653,245.28 | 23,552,919.44 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 106,633,979.81 | -59,691,806.33 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 106,633,979.81 | -59,691,806.33 |
| 5.1.1Changescausedbyremeasurementsondefined |
| benefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 106,633,979.81 | -59,691,806.33 |
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | ||
| 6.Totalcomprehensiveincome | 182,287,225.09 | -36,138,886.89 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12021 | H12020 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 981,576,052.47 | 860,915,528.67 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 22,968,063.81 | 13,166,033.29 |
| Cashgeneratedfromotheroperatingactivities | 8,267,240.80 | 7,744,404.19 |
| Subtotalofcashgeneratedfromoperatingactivities | 1,012,811,357.08 | 881,825,966.15 |
| Paymentsforcommoditiesandservices | 817,182,988.13 | 657,759,091.59 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 182,319,842.94 | 152,057,875.00 |
| Taxespaid | 23,836,429.52 | 19,245,929.17 |
| Cashusedinotheroperatingactivities | 82,026,216.55 | 73,117,799.64 |
| Subtotalofcashusedinoperatingactivities | 1,105,365,477.14 | 902,180,695.40 |
| Netcashgeneratedfrom/usedinoperatingactivities | -92,554,120.06 | -20,354,729.25 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 20,900,000.00 | 3,550,487.00 |
| Returnoninvestment | 8,666,039.34 | 5,384,597.04 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 544,953.88 | 108,370.88 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 220,217.55 | 97,150.00 |
| Subtotalofcashgeneratedfrominvestingactivities | 30,331,210.77 | 9,140,604.92 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 89,253,071.04 | 33,004,278.41 |
| Paymentsforinvestments | 49,250,000.00 | 4,600,000.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 50,000.00 | 930,300.00 |
| Subtotalofcashusedininvestingactivities | 138,553,071.04 | 38,534,578.41 |
| Netcashgeneratedfrom/usedininvestingactivities | -108,221,860.27 | -29,393,973.49 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 634,999,996.40 | |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 7,000,000.00 | 10,000,000.00 |
| Cashgeneratedfromotherfinancingactivities | 1,391,000.00 | |
| Subtotalofcashgeneratedfromfinancingactivities | 643,390,996.40 | 10,000,000.00 |
| Repaymentofborrowings | 12,000,000.00 | 10,000,000.00 |
| Interestanddividendspaid | 585,750.44 | 2,212,485.64 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 12,694,718.67 | |
| Subtotalofcashusedinfinancingactivities | 25,280,469.11 | 12,212,485.64 |
| Netcashgeneratedfrom/usedinfinancingactivities | 618,110,527.29 | -2,212,485.64 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | -361,452.02 | |
| 5.Netincreaseincashandcashequivalents | 417,334,546.96 | -52,322,640.40 |
| Add:Cashandcashequivalents,beginningoftheperiod | 629,939,540.50 | 545,959,998.20 |
| 6.Cashandcashequivalents,endoftheperiod | 1,047,274,087.46 | 493,637,357.80 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12021 | H12020 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 894,925,360.60 | 731,880,356.33 |
| Taxrebates | 17,264,845.63 | 8,380,462.40 |
| Cashgeneratedfromotheroperatingactivities | 6,892,535.60 | 6,294,839.20 |
| Subtotalofcashgeneratedfromoperatingactivities | 919,082,741.83 | 746,555,657.93 |
| Paymentsforcommoditiesandservices | 781,316,544.81 | 566,778,723.71 |
| Cashpaidtoandforemployees | 155,951,400.17 | 130,215,884.89 |
| Taxespaid | 17,244,260.55 | 12,974,529.61 |
| Cashusedinotheroperatingactivities | 70,426,536.35 | 65,655,389.30 |
| Subtotalofcashusedinoperatingactivities | 1,024,938,741.88 | 775,624,527.51 |
| Netcashgeneratedfrom/usedinoperatingactivities | -105,856,000.05 | -29,068,869.58 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 500,487.00 | |
| Returnoninvestment | 8,191,724.76 | 4,983,988.73 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 43,495.14 | 107,470.88 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 8,235,219.90 | 5,591,946.61 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 4,226,730.46 | 2,365,851.07 |
| Paymentsforinvestments | 186,250,000.00 | 35,000,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 190,476,730.46 | 37,365,851.07 |
| Netcashgeneratedfrom/usedininvestingactivities | -182,241,510.56 | -31,773,904.46 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 634,999,996.40 | |
| Borrowingsraised | 5,000,000.00 | |
| Cashgeneratedfromotherfinancingactivities | 1,391,000.00 |
| Subtotalofcashgeneratedfromfinancingactivities | 636,390,996.40 | 5,000,000.00 |
| Repaymentofborrowings | 5,000,000.00 | 5,000,000.00 |
| Interestanddividendspaid | 109,958.35 | 914,216.00 |
| Cashusedinotherfinancingactivities | 12,694,318.18 | |
| Subtotalofcashusedinfinancingactivities | 17,804,276.53 | 5,914,216.00 |
| Netcashgeneratedfrom/usedinfinancingactivities | 618,586,719.87 | -914,216.00 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | -491,932.82 | |
| 5.Netincreaseincashandcashequivalents | 330,489,209.26 | -62,248,922.86 |
| Add:Cashandcashequivalents,beginningoftheperiod | 559,573,331.81 | 497,777,104.81 |
| 6.Cashandcashequivalents,endoftheperiod | 890,062,541.07 | 435,528,181.95 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’EquityH12021
Unit:RMB
| Item | H12021 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 561,374,326.00 | 164,328,665.43 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 777,899,079.66 | 2,273,349,347.02 | 19,498,589.15 | 2,292,847,936.17 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 561,374,326.00 | 164,328,665.43 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 777,899,079.66 | 2,273,349,347.02 | 19,498,589.15 | 2,292,847,936.17 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 144,318,181.00 | 476,347,552.97 | 106,633,979.81 | 129,189,065.60 | 856,488,779.38 | 165,384.93 | 856,654,164.31 | ||||||
| 3.1Totalcomprehensiveincome | 106,633,979.81 | 129,189,065.60 | 235,823,045.41 | 165,384.93 | 235,988,430.34 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | 620,665,733.97 | |||||||||
| 3.2.1Ordinarysharesincreasedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | 620,665,733.97 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | |||||||||||||
| 3.3Profitdistribution | |||||||||||||
| 3.3.1Appropriationtosurplusreserves |
| 3.3.2Appropriationtogeneralreserve |
| 3.3.3Appropriationtoowners(orshareholders) |
| 3.3.4Other |
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other |
| 3.5Specificreserve |
| 3.5.1Increaseintheperiod |
| 3.5.2Usedintheperiod |
| 3.6Other |
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 640,676,218.40 | 532,116,738.05 | 18,812,986.55 | 325,451,531.14 | 907,088,145.26 | 3,129,838,126.40 | 19,663,974.08 | 3,149,502,100.48 |
H12020
Unit:RMB
| Item | H12020 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 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 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | 1,833.38 | 1,651,336.26 | 1,653,169.64 | 1,653,169.64 | |||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 561,374,326.00 | 164,328,665.43 | 317,059,775.00 | 17,560,202.07 | 322,228,533.72 | 728,341,265.36 | 2,110,892,767.58 | 19,636,281.01 | 2,130,529,048.59 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -60,040,175.00 | 878,448.44 | 28,038,679.73 | -31,123,046.83 | 177,483.67 | -30,945,563.16 | |||||||
| 3.1Totalcomprehensiveincome | -59,691,806.33 | 27,690,311.06 | -32,001,495.27 | 177,483.67 | -31,824,011.60 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | |||||||||||||
| 3.3Profitdistribution | |||||||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||||
| 3.3.2Appropriationto |
| generalreserve | |||||||||
| 3.3.3Appropriationtoowners(orshareholders) | |||||||||
| 3.3.4Other | |||||||||
| 3.4Transferswithinowners’equity | -348,368.67 | 348,368.67 | |||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||
| 3.4.6Other | -348,368.67 | 348,368.67 | |||||||
| 3.5Specificreserve | 878,448.44 | 878,448.44 | 878,448.44 | ||||||
| 3.5.1Increaseintheperiod | 1,883,145.87 | 1,883,145.87 | 1,883,145.87 |
| 3.5.2Usedintheperiod | 1,004,697.43 | 1,004,697.43 | 1,004,697.43 | ||||||||||
| 3.6Other | |||||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 561,374,326.00 | 164,328,665.43 | 257,019,600.00 | 18,438,650.51 | 322,228,533.72 | 756,379,945.09 | 2,079,769,720.75 | 19,813,764.68 | 2,099,583,485.43 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParentH12021
Unit:RMB
| Item | H12021 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 561,374,326.00 | 183,071,147.70 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 677,800,436.75 | 2,191,993,186.38 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 561,374,326.00 | 183,071,147.70 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 677,800,436.75 | 2,191,993,186.38 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 144,318,181.00 | 476,347,552.97 | 106,633,979.81 | 75,653,245.28 | 802,952,959.06 | |||||||
| 3.1Totalcomprehensiveincome | 106,633,979.81 | 75,653,245.28 | 182,287,225.09 | ||||||
| 3.2Capitalincreasedandreducedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | ||||||
| 3.2.1Ordinarysharesincreasedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||
| 3.2.4Other | |||||||||
| 3.3Profitdistribution | |||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||
| 3.3.2Appropriationtoowners(orshareholders) | |||||||||
| 3.3.3Other | |||||||||
| 3.4Transferswithinowners’equity | |||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 532,116,738.05 | 18,812,986.55 | 325,451,531.14 | 753,453,682.03 | 2,994,946,145.44 |
H12020
Unit:RMB
| Item | H12020 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 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 | |||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||
| Adjustmentforcorrectionofpreviouserror | 1,833.38 | 16,500.44 | 18,333.82 | |||||||
| Otheradjustments | ||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 561,374,326.00 | 183,071,147.70 | 317,059,775.00 | 17,560,202.07 | 322,228,533.72 | 648,793,459.97 | 2,050,087,444.46 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -60,040,175.00 | 878,448.44 | 23,901,288.11 | -35,260,438.45 | ||||||
| 3.1Totalcomprehensiveincome | -59,691,806.33 | 23,552,919.44 | -36,138,886.89 | |||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | ||||||||||
| 3.3Profitdistribution | ||||||||||
| 3.3.1Appropriationtosurplusreserves |
| 3.3.2Appropriationtoowners(orshareholders) | |||||||
| 3.3.3Other | |||||||
| 3.4Transferswithinowners’equity | -348,368.67 | 348,368.67 | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | -348,368.67 | 348,368.67 | |||||
| 3.4.6Other | |||||||
| 3.5Specificreserve | 878,448.44 | 878,448.44 | |||||
| 3.5.1Increaseintheperiod | 1,883,145.87 | 1,883,145.87 | |||||
| 3.5.2Usedintheperiod | 1,004,697.43 | 1,004,697.43 | |||||
| 3.6Other |
| 4.BalanceasattheendoftheReportingPeriod | 561,374,326.00 | 183,071,147.70 | 257,019,600.00 | 18,438,650.51 | 322,228,533.72 | 672,694,748.08 | 2,014,827,006.01 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
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
nd
ExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange.Asat31December2020,thetotalsharecapitaloftheCompanyis561,374,326.00shares,aswellasregisteredcapitalofRMB561,374,326.00,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.AndtheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.On9April2020,theCompanyheldthe24
th
Meetingofthe8
th
BoardofDirectors,wherethe2020ProposalonChangchaiCo.,Ltd.Non-publicIssuancewasdeliberatedandadopted.TheCompanyintendedtomakeanon-publicissuanceofdomesticlistedRMBordinarysharestospecifictargets,whichwasapprovedbythecontrollingshareholderChangzhouInvestmentGroupCo.,Ltd.,anddeliberatedandadoptedbythe2019annualgeneralmeeting.On18September2020,theCompany'sBoardofDirectorsdeliberatedandadoptedtheamendmentsrelatedtothenon-publicissuanceofsharesatanExtraordinaryGeneralMeeting.TheCompanysupplementedandimprovedtheforegoingproposalinaccordancewiththerelevantamendments,andcompiledthe2020ProposalonChangchaiCo.,Ltd.Non-publicIssuance(Amendment),whichwasdeliberatedandadoptedbythesecondExtraordinaryGeneralMeetingin2020.TheCompanyoffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.TheissuingpricewasRMB4.40pershare,thetotalamountraisedwasRMB634,999,936.40,andthenetamountraisedwasRMB622,499,996.40.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B062)wasissued.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproduction
andsalesofsmallandmedium-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.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson13April2021.TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand7subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.
IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.ContinuationTheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthefinancialinstruments,withdrawalmethodofthebaddebtprovisionoftheaccountsreceivable,themeasurementoftheinventoryandthedepreciationofthefixedassetsetc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriodThefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.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)BusinesscombinationsnotunderthesamecontrolAbusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatementsTheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiod
thatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthefinancialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationasparticipatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjusttheperiod-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthecomparedstatement.Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthecurrentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheGroupclassifiesjointarrangementsintojointoperationsandjointventures.
AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.
8.RecognitionStandardforCashandCashEquivalentsIntheGroup’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)TranslationofforeigncurrencyTheassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributed
profits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstruments
(1)ClassificationofFinancialInstrumentsTheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:
financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)andfinancialassetsatfairvaluethroughprofitorlossFinancialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①FinancialassetsmeasuredatamortizedcostFinancialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.ForaccountsreceivableexcludingsignificantfinancingandaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,theinitialmeasurementshallbemadeatthecontracttransactionprice.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenrecoveredordisposed,thedifferencebetweenthepriceobtainedandthecarryingvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
②Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)includeaccountsreceivablefinancingandinvestmentinotherdebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueexceptforinterestcalculatedwithactualrates,impairmentlossesorgainsandexchangegainsorlossesshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintothecurrentprofitorloss.
③Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)includeinvestmentinotherequityinstruments,etc.whichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueshallberecordedintoothercomprehensiveincome.Thedividendsobtainedshallberecordedintothecurrentprofitorloss.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintoretainedearnings.
④FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
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.The
Companyadoptsthevaluationtechniquesapplicabletothecurrentconditionswhicharesupportedbysufficientdataandotherinformationforvaluation,andselectstheinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinassetorliabilitytransactions,withprioritytoobservableinputvalues.Unobservableinputvaluesareusedonlywhenrelevantobservableinputvaluesarenotavailableorpractical.
(6)Impairmentoffinancialinstrument
①ImpairmentmeasurementandaccountinghandlingoffinancialinstrumentBasedonexpectedcreditloss,theCompanyconductsimpairmenthandlingandconfirmscreditimpairmentlossforfinancialassetswhichismeasuredbyamortizedcost,debtinstrumentinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,financialguaranteecontract.Expectedcreditlossreferstoweightedaverageofcreditlossoffinancialinstrumentwhichtakestheriskofcontractbreachoccurrenceastheweight.Creditlossreferstothedifferencebetweenallcontractcashflowwhichisconvertedintocashaccordingtoactualinterestrateandreceivableaccordingtocontractandallcashflowwhichtobechargedasexpected,i.e.currentvalueofallcashshortage.Amongit,asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,itshouldbeconvertedintocashaccordingactualinterestrateofthisfinancialassetaftercreditadjustment.Asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,theCompanyonlyconfirmscumulativechangeofexpectedcreditlosswithinthewholedurationafterinitialconfirmationonthebalancesheetdateaslossreserve.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,theCompanyconfirmsitslossreserveinother
comprehensiveprofitsanddoesnotoffsetthecarryingvalueofthefinancialasset.
②Fornotesreceivable,accountsreceivable,otherreceivablesandlong-termreceivableswithobjectiveevidenceindicatingimpairmentandthosesuitableforindividualevaluation,theCompanycarriesoutimpairmenttestseparatelytoconfirmexpectedcreditlossandprepareprovisionforimpairmentofsingleitems.Fornotesreceivable,accountsreceivableandotherreceivableswithoutobjectiveevidenceofimpairment,orasinglefinancialassetwithexpectedcreditlossimpossibletobeassessedatareasonablecost,theCompanydividesthereceivablesintogroupsaccordingtothecharacteristicsofcreditrisk,andcalculatestheexpectedcreditlossbasedonreceivablegroups.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.NotesReceivableSee“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,shouldrecognizethenetrealizablevalueaccordingtothe
amountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproductsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
14.ContractAssetsContractAssetsmeansthattheCompanyisendowedwiththerighttochargetheconsiderationthroughtransferringanycommodityorservicetotheclient,andsuchrightdependsonotherfactorsexceptthepassingoftime.TheCompany’sunconditionalright(onlydependingonthepassingoftime)ofchargingtheconsiderationfromtheclientshallbeseparatelypresentedasreceivables.TherecognitionmethodandaccountingtreatmentmethodoftheestimatedcreditlossofcontractassetsareconsistentwiththatspecifiedinNotesV.12.
15.ContractCosts
(1)CostsfromAcquiringContractIftheincrementalcostresultingfromtheCompany’sacquiringofcontract(namelycostsmerelyresultingfromtheacquiringofcontract)ispredictedtoberetrieved,itshallberecognizedasanassets,amortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Iftheassets’amortizationperioddoesnotexceedoneyear,itshallbeimmediatelyincludedintothecurrentprofitandloss.OtherexpensesresultingfromtheCompany’sacquiringofcontractshallalsobeincludedintothecurrentprofitandlossunlessitisexplicitlybornebytheclient.
(2)CostsfromExecutingContractTheCompany’scostsfromexecutingcontractisnotcoveredbyotherASBEexceptforRevenueStandards,andwhenthefollowingsituationsaremet,suchcostscanberecognizedasanassets:①thecostsaredirectlyrelatedtoacurrentorpredictedcontract;②thecostsincreasetheCompany’sresourcesappliedtofulfillperformanceobligationsinthefuture;③thecostsarepredictedtoberetrieved.Therecognizedassetsshallbeamortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Ifthebookvalueofcontractcostsishigherthanthedifferenceofthefollowingtwoitems,correspondingdepreciationreservesshallbecountedandwithdrawnanditshallberecognizedastheassetsdepreciationloss:①theresidualconsiderationpredictedtobeacquiredbytransferringcommoditiesrelatedtotheassets;②thecostspredictedtooccurduetothetransferofrelatedcommodities.Ifthedifferencebetween①and②ishigherthanthebookvalueofcontractcostsduetoanychangeinvariousfactorscausingdepreciationinpreviousperiods,itshallberestitutedtothewithdrawnassetsdepreciationreservesandincludedinthecurrentprofitandloss.However,thebookvalueofrestitutedcontractcostsshallnotexceedthebookvalueoftheassetsonthedayofrestitutionbasedonthehypothesisthatdepreciationreservesarenotcountedandwithdrawn.
16.AssetsHeldforSaleTheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowingconditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.
17.Long-termEquityInvestments
(1)JudgmentstandardofjointcontrolandsignificantinfluencesJointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)RecognitionforinitialinvestmentcostTheinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeansTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,
thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)AninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethodWheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)AninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethodWheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheCompany,shouldbeadjustedaccordingtotheaccountingpoliciesoftheCompanyandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheCompanyaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshall
berecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.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.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheCompanyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingto
therecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
18.InvestmentRealEstateMeasurementmodeofinvestmentrealestate:
MeasurementofcostmethodDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
19.FixedAssets
(1)RecognitionConditionsFixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(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% |
20.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
21.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.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
22.IntangibleAssets
(1)PricingMethod,ServiceLife,andImpairmentTest
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)AmortizationmethodandtermofintangibleassetsAsfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)AccountingPolicesofInternalR&DCostsTheinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.TheCompanycollectsthecostsofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentcostsforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentcostsoftheintangibleassetscanbereliablymeasured.
23.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimited
servicelife,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.
24.Long-termDeferredExpensesLong-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
25.ContractLiabilitiesContractliabilitiesrefertotheCompany’sobligationsintransferringcommoditiesorservicestotheclientforthereceivedorpredictedconsideration.Contractassetsandcontractliabilitiesunderthesamecontractshallbepresentedbasedonthenetamount.
26.EmployeeBenefits
(1)AccountingTreatmentofShort-termCompensationShort-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.
Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemissionTheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.DefinedcontributionplansDuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
27.Provisions
(1)CriteriaofprovisionsOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)MeasurementofprovisionsTheCompanyshallmeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.TheCompanyshallcheckthebookvalueoftheprovisionsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
28.RevenueAccountingpoliciesforrecognitionandmeasurementofrevenue:
WhentheCompanyfulfillsitsdueperformanceobligations(namelywhentheclientobtainsthecontroloverrelatedcommoditiesorservices),revenuesshallberecognizedbasedontheobligation’samortizedtransactionprice.PerformanceObligationreferstotheCompany’spromiseoftransferringcommoditiesorservicesthatcanbeclearlydefinedtotheclient.TransactionPricereferstotheconsiderationamountdulychargedbytheCompany
fortransferringcommoditiesorservicestotheclient,excludinganyamountchargedbythethirdpartyandanyamountpredictedtobereturnedtotheclient.ControlOverRelevantCommoditiesmeansthattheuseofcommoditiescanbecontrolledandalmostalleconomicinterestscanbeobtained.Onthecontractcommencementday,theCompanyshallevaluatethecontract,recognizeindividualperformanceobligationandconfirmthatindividualperformanceobligationisfulfilledinacertainperiod.Whenoneofthefollowingconditionsismet,suchperformanceobligationshallbedeemedasfulfilledinacertainperiod,andtheCompanyshallrecognizeitasrevenuewithinacertainperiodaccordingtotheperformanceschedule:(1)theclientobtainsandconsumestheeconomicinterestsresultingfromtheCompany’sperformanceofcontractwhileperformingthecontract;(2)theclientisabletocontrolthecommoditiesunderconstructionduringtheperformance;(3)commoditiesproducedbytheCompanyduringtheperformancepossesstheirreplaceablepurpose,andtheCompanyhastherighttochargeallfinishedpartsduringthecontractperiod;otherwise,theCompanyshallrecognizetherevenuewhentheclientobtainsthecontroloverrelevantcommoditiesorservices.TheCompanyshalladopttheInputMethodtodeterminethePerformanceSchedule.Namely,thePerformanceScheduleshallbedeterminedaccordingtotheCompany’sinputforfulfillingperformanceobligations.WhenthePerformanceSchedulecannotbereasonablydeterminedandallresultingcostsarepredictedtobecompensated,theCompanyshallrecognizetherevenuebasedontheresultingcostamounttillthePerformanceSchedulecanbereasonablydetermined.Whenthecontractinvolvestwoormorethantwoperformanceobligations,thetransactionpriceshallbeamortizedtoeachsingleperformanceobligationonthecontractcommencementdayaccordingtotherelativeproportionoftheindependentsellingpriceofcommoditiesorservicesundereachsingleperformanceobligation.Ifanysolidevidenceprovesthatthecontractdiscountorvariableconsiderationonlyrelatestooneormorethanone(notall)performanceobligationunderthecontract,theCompanyshallamortizethecontractdiscountorvariableconsiderationtooneormorethanonerelatedperformanceobligations.IndependentsellingpricereferstothepriceadoptedbytheCompanytoindependentlysellcommoditiesorservicestotheclient.However,independentsellingpricecannotbedirectlyobserved.TheCompanyshallestimatetheindependentsellingpricebycomprehensivelyconsideringallrelatedinformationthatcanbereasonablyobtainedandmaximallyadoptingtheobservableinputvalue.VariableConsiderationIfanyvariableconsiderationexistsinthecontract,theCompanyshalldeterminetheoptimalestimationofthevariableconsiderationbasedontheexpectedvaluesorthemostpossibleamount.Thevariableconsideration’stransactionpriceshallbeincludedwithoutexceedingthetotalrevenueamountrecognizedwithouttheriskofsignificantrestitutionwhenalluncertaintiesareeliminated.Oneachbalancesheetday,theCompanyshallre-estimatethevariableconsiderationamounttobeincludedinthetransactionprice.ConsiderationPayabletotheClientIfanyconsiderationpayabletotheclientexistsinthecontract,theCompanyshallusesuchconsiderationtooffsetthetransactionpriceunlesssuchconsiderationispaidforacquiringotherclearly-definedcommoditiesorservicesfromtheclient,andwritedownthecurrentrevenueatthelatertimebetweenthetimeofrecognizingrelevantrevenuesandthetimeofpaying(orpromisingthepayment)theconsiderationtotheclient.SaleswiththeQualityAssuranceForsaleswiththeQualityAssurance,iftheQualityAssuranceinvolvesanotherseparateserviceexceptfortheguaranteeofallsoldcommoditiesorservicesmeetingallestablishedstandards,theQualityAssuranceshallconstituteasinglePerformanceObligation;otherwise,theCompanyshallmakecorrespondingaccountingtreatmenttotheQualityAssuranceaccordingtoASBENo.13--Contingency.
MainResponsibilityPerson/AgentAccordingtowhetherthecontrolovercommoditiesorservicesisobtainedbeforetheyaretransferredtotheclient,theCompanycanjudgewhetheritisMainResponsibilityPersonorAgentbasedonitsstatusduringthetransaction.IftheCompanycancontrolcommoditiesorservicesbeforetheyaretransferredtotheclient,theCompanyshallbeMainResponsibilityPerson,andrevenuesshallberecognizedaccordingtothetotalconsiderationamountreceivedortobereceived;otherwise,theCompanyshallbeAgent,andrevenuesshallberecognizedaccordingtothecommissionorservicefeespredictedtobedulycharged.However,suchamountshallbedeterminedbasedonthenetamountafterdeductingotheramountspayabletootherrelatedpartiesfromthetotalconsiderationreceivedortobedulyreceivedorthefixedcommissionamountorproportion.InterestRevenueInterestRevenueshallbedeterminedaccordingtothetimeoftheCompany’suseofmonetarycapitalandtheactualinterestrate.RentalIncomeTherentalincomefromoperatingleaseshallberecognizedduringeachleaseperiodaccordingtothestraight-linemethod,andthecontingentrentshallbeincludedintothecurrentprofitandlosswithoutdelay.
29.GovernmentGrants
(1)TypeAgovernmentgrantmeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentgrantsconsistofthegovernmentgrantspertinenttoassetsandgovernmentgrantspertinenttoincomeaccordingtotherelevantgovernmentdocuments.Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisoftheCompanyclassifiesthegovernmentgrantspertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidiesThegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentgrantsaswellascouldbeacquired.Ifthegovernmentgrantsarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentgrantsarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatmentThegovernmentgrantspertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentgrantspertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,andshallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.Forgovernmentgrantsthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.GovernmentgrantsrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.
Thegovernmentgrantsrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentgrantsassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.
30.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)BasisofrecognizingthedeferredincometaxassetsAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,adeferredtaxassetshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)BasisofrecognizingthedeferredincometaxliabilitiesAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxliabilityshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
31.Lease
(1)AccountingTreatmentofOperatingLease
1)OperatingleasedassetsTheCompanyapportionstherentalcostsforrentedassetsonastraight-linebasisovertheentireleasetermwithoutdeductingtherent-freeperiod,andincludestheminthecurrentcosts.TheinitialdirectcostspaidbytheCompanyinconnectionwiththeleasetransactionareincludedinthecurrentcosts.Ifthelessoroftheassetsbearsanylease-relatedcoststhatshouldbebornebytheCompany,theCompanyshalldeductsuchcostsfromthetotalrentcostsandapportiontheminaccordancewiththerentalcostsafterdeductionduringtheleasetermandincludethemintothecurrentcosts.Thecompanychoosesnottorecognizetherighttouseassetsandleaseliabilitiesforshort-termleasesandlow-valueassetleases,andtherelevantleasepaymentsareincludedinthecurrentprofitsandlossesorrelevantassetcostsaccordingtothestraight-linemethodineachperiodoftheleaseterm.Shorttermleasereferstoaleasewithaleasetermofnomorethan12monthsandexcludingthepurchaseoptiononthebeginningdateoftheleaseterm.Lowvalueassetleasereferstotheleasewithlowervaluewhenthesingleleasedassetisanewasset.Wherethecompanysubletsorexpectstosublettheleasedassets,theoriginalleaseisnotalowvalueassetlease.
2)Operatingleasedassets
TheCompanyapportionstherentalcostschargedbytheCompanyforrentingassetsonastraight-linebasisovertheentireleasetermwithoutdeductingtherent-freeperiod,andrecognizesthemasrentalreceipts.TheinitialdirectcostspaidbytheCompanyrelatedtotheleasetransactionshallbeincludedinthecurrentcosts;largeramountsarecapitalizedandrecognizedincurrentprofitonthesamebasisasrentalreceiptthroughoutthetermoftheoperatinglease.IftheCompanybearsthelease-relatedcoststhatshouldbebornebythelessee,theCompanyshalldeductthispartofthecostsfromthetotalrentcosts,andapportionthedeductedrentalcostsduringtheleaseterm.
(2)AccountingTreatmentsofFinancialLease
1)Financingleasedassets:Onthebeginningdateofthelease,theCompanytakestheloweronebetweenthefairvalueoftheleaseholdpropertyandthepresentvalueoftheminimumleasepaymentastheentryvalueoftheleasedasset,takestheminimumleasepaymentastheentryvalueofthelong-termaccountpayable,andthedifferenceastheunrecognizedfinancingcosts.Therecognitionbasis,valuationanddepreciationmethodoffinancingleasedassetsaredescribedin19.FixedAssetsofIV.PreparationBasisofFinancialStatementsofSection10FinancialReport.TheCompanyadoptstheeffectiveinterestmethodtoamortizeunrecognizedfinancingcostsduringtheassetleaseperiodandincludestheminfinancialcosts.
2)Financingleasedassets:Onthebeginningdateoflease,theCompanyrecognizesthefinanceleasereceivables,thedifferencebetweenthesumofunguaranteedresidualvalueanditspresentvalueasunrealizedfinancingincome,whichisrecognizedasrentalreceiptduringeachperiodwhentherentisreceivedinthefuture.TheinitialdirectcostsarisingfromtheCompanyinconnectionwiththeleasetransactionshallbeincludedintheinitialmeasurementoffinanceleasereceivables,andtheamountofincomerecognizedduringtheleasetermshallbededucted.
32.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
| Changestotheaccountingpoliciesandwhy | Approvalprocess |
| TheMinistryofFinancerevisedandissuedtheAccountingStandardsforBusinessEnterprisesNo.21-leases(hereinafterreferredtoasthe“NewStandardsgoverningLeases”)inDecember2018andrequiredalldomesticallylistedcompaniestoimplementitsince1January2021. | On16August2021,the10thMeetingofthe9thBoardofDirectorsandthe10thMeetingofthe9thSupervisoryCommitteewereheldbytheCompanyonwhichtheProposalonChangesofAccountingPolicieswasapprovedandtheCompanywasallowedtoimplementthenewstandardsgoverningleasessince1January2021. |
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningLeasessince2021
□Applicable√NotapplicableOpeningleasesaremainlyshort-termleasesorlowvalueassetleases,whichdonotinvolveadjustingtheaccountsofthebalancesheetatthebeginningoftheyear.
(4)RetroactiveAdjustmentstoComparativeDataofPriorYearswhenFirstExecutionofanyNewStandardsGoverningLeasessince2021
□Applicable√NotapplicableVI.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Payabletosalesrevenue | 13%,9%,6% |
| Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
| Enterpriseincometax | Taxableincome | 25%、15%、5% |
| Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Name | Incometaxrate |
| ChangchaiCompany,Limited | 15% |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHoushengInvestmentCo.,Ltd. | 25% |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25% |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 15% |
| JiangsuChangchaiMachineryCo.,Ltd. | 25% |
| ChangzhouXingshengRealEstateManagementCo.,Ltd. | 5% |
2.TaxPreferenceOn24October2018,theCompanyobtainedtheCertificatesforHigh-techEnterprisesagain,anditstillenjoys15-percentpreferentialrateforcorporateincometaxduringtheReportingPeriod;theCompany’scontrollingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2030inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationof
TaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopment.On2December2020,thewholly-ownedsubsidiaryChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.obtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod;Thewholly-ownedsubsidiaryChangzhouXingshengRealEstateManagementCo.,Ltd.iseligiblesmallenterprisewithlowprofitsandshallpaythecorporateincometaxattaxrate2.5%forsmallenterpriseswithlowprofitsduringtheReportingPeriod.VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 194,231.28 | 287,505.91 |
| Bankdeposits | 1,010,488,713.41 | 620,966,786.57 |
| Othermonetaryassets | 221,793,952.77 | 139,473,930.37 |
| Total | 1,232,476,897.46 | 760,728,222.85 |
| Ofwhich:Totalamountdepositedoverseas | ||
| Totalamountofrestrictioninusebyguaranteed,pledgedorfrozen |
Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB213,108,704.75,ofwhichRMB209,299,350.00wasthecashdepositforbankacceptancebills,RMB2,993,220.00wascashdepositforL/G,andRMB816,134.75wascashdepositforenvironment.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 34,994,390.00 | 11,500,272.00 |
| Ofwhich:Forwardsettlement | 25,194,390.00 | 200,272.00 |
| Financialproducts | 9,800,000.00 | 11,300,000.00 |
| Total | 34,994,390.00 | 11,500,272.00 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 341,957,460.75 | 600,140,938.05 |
| Total | 341,957,460.75 | 600,140,938.05 |
Ifthebaddebtprovisionfornotesreceivablewaswithdrawninaccordancewiththegeneralmodelofexpectedcreditlosses,informationrelatedtobaddebtprovisionshallbedisclosedbyreferencetothedisclosuremethodofotherreceivables:
□Applicable√Notapplicable
(2)ThereWereNoNotesReceivablePledgedbytheCompanyatthePeriod-end
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 706,793,170.52 | |
| Total | 706,793,170.52 |
(4)ThereWereNoNotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreementatthePeriod-end
4.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 33,710,363.72 | 3.03% | 31,814,776.89 | 94.38% | 1,895,586.83 | 33,703,039.72 | 5.98% | 31,807,452.89 | 94.38% | 1,895,586.83 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithsignificantamountforwhichbaddebtprovisionseparatelyaccrued | 29,870,525.05 | 2.68% | 27,974,938.22 | 93.65% | 1,895,586.83 | 29,870,525.05 | 5.30% | 27,974,938.22 | 93.65% | 1,895,586.83 |
| Accountsreceivablewithinsignificantamountforwhichbaddebtprovisionseparatelyaccrued | 3,839,838.67 | 0.35% | 3,839,838.67 | 100% | 3,832,514.67 | 0.68% | 3,832,514.67 | 100.00% | 0.00 | |
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 1,079,815,075.58 | 96.97% | 146,780,255.58 | 13.59% | 933,034,820.00 | 529,486,382.09 | 94.02% | 134,227,952.43 | 25.35% | 395,258,429.66 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 1,079,815,075.58 | 96.97% | 146,780,255.58 | 13.59% | 933,034,820.00 | 529,486,382.09 | 94.02% | 134,227,952.43 | 25.35% | 395,258,429.66 |
| Total | 1,113,525,439.30 | 100% | 178,595,032.47 | 16.04% | 934,930,406.83 | 563,189,421.81 | 100.00% | 166,035,405.32 | 29.48% | 397,154,016.49 |
Accountreceivableswithdrawnbaddebtprovisionseparatelywithsignificantamountattheperiodend:
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonofwithdrawal | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| 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 | 2,254,860.60 | 2,175,814.38 | 96.49% | Expectedtodifficultlyrecover |
| Customer5 | 3,633,081.23 | 1,816,540.62 | 50.00% | Expectedtodifficultlyrecover |
| Customer6 | 3,279,100.00 | 3,279,100.00 | 100.00% | Difficulttorecover |
| Customer7 | 1,617,988.01 | 1,617,988.01 | 100.00% | Difficulttorecover |
| 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 | 1,553,208.52 | 1,553,208.52 | 100.00% | Difficulttorecover |
| Total | 29,870,525.05 | 27,974,938.22 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 929,291,594.72 | 18,585,831.89 | 2% |
| 1to2years | 13,163,708.26 | 658,185.41 | 5% |
| 2to3years | 5,757,387.04 | 863,608.06 | 15% |
| 3to4years | 5,977,789.55 | 1,793,336.87 | 30% |
| 4to5years | 1,863,256.65 | 1,117,953.99 | 60% |
| Over5years | 123,761,339.36 | 123,761,339.36 | 100% |
| Total | 1,079,815,075.58 | 146,780,255.58 | -- |
Notesofthebasisofdeterminingthegroup:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsincurredactually,amongwhichtheaccountsincurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 930,506,222.09 |
| 1to2years | 12,383,657.51 |
| 2to3years | 7,707,136.60 |
| Over3years | 162,928,423.10 |
| 3to4years | 8,514,079.30 |
| 4to5years | 4,948,995.83 |
| Over5years | 149,465,347.97 |
| Total | 1,113,525,439.30 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
| Withdrawal | Reversalorrecovery | Write-off | |||
| Baddebtprovisionwithdrawnseparately | 31,807,452.89 | 64,251.53 | 56,927.53 | 31,814,776.89 | |
| Baddebtprovisionwithdrawnbygroup | 134,227,952.43 | 12,552,303.15 | 146,780,255.58 | ||
| Total | 166,035,405.32 | 12,616,554.68 | 56,927.53 | 0.00 | 178,595,032.47 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)ThereWereNoAccountsReceivablewithActualVerificationduringtheReportingPeriod.
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 559,214,901.98 | 50.22% | 11,184,298.04 |
| Customer2 | 56,638,430.22 | 5.09% | 1,132,768.60 |
| Customer3 | 40,930,712.14 | 3.68% | 818,614.24 |
| Customer4 | 26,775,895.61 | 2.40% | 535,517.91 |
| Customer5 | 19,053,675.15 | 1.71% | 381,073.50 |
| Total | 702,613,615.10 | 63.10% |
5.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 7,305,834.42 | 75.29% | 7,039,656.05 | 75.23% |
| 1to2years | 693,826.41 | 7.15% | 641,762.79 | 6.86% |
| 2to3years | 699,453.91 | 7.215 | 673,819.29 | 7.20% |
| Over3years | 1,003,859.31 | 10.35% | 1,002,602.62 | 10.71% |
| Total | 9,702,974.05 | -- | 9,357,840.75 | -- |
Therewasnoprepaymentwithsignificantamountagingoveroneyearasoftheperiod-end.
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB5,538,728.83accountingfor57.08%ofthetotalendingbalanceofprepayments.
6.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 0.00 | 0.00 |
| Dividendreceivable | 0.00 | 0.00 |
| Otherreceivables | 2,537,634.11 | 6,212,062.80 |
| Total | 2,537,634.11 | 6,212,062.80 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Marginandcashpledge | 4,200.00 | 4,200.00 |
| Intercoursefunds | 20,767,909.49 | 22,967,220.99 |
| Pettycashandborrowingsbyemployees | 1,346,523.65 | 1,359,483.08 |
| Other | 12,280,426.56 | 13,806,779.19 |
| Total | 34,399,059.70 | 38,137,683.26 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2021 | 31,925,620.46 | 31,925,620.46 | ||
| Balanceof1January2021intheCurrentPeriod | —— | —— | ||
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | 7,761.56 | 7,761.56 | ||
| ReversaloftheCurrentPeriod | 71,956.43 | 71,956.43 | ||
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof30June2021 | 31,861,425.59 | 31,861,425.59 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 827,728.98 |
| 1to2years | 476,523.23 |
| 2to3years | 451,265.69 |
| Over3years | 32,643,541.80 |
| 3to4years | 1,152,265.74 |
| 4to5years | 215,623.67 |
| Over5years | 31,275,652.39 |
| Total | 34,399,059.70 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionforwhichaccruedseparately | 5,039,368.41 | 5,039,368.41 | ||||
| Baddebtprovisionforwhichaccruedbygroup | 26,886,252.05 | 7,761.56 | 71,956.43 | 26,822,057.18 | ||
| Total | 31,925,620.46 | 7,761.56 | 71,956.43 | 31,861,425.59 | ||
4)ThereWasNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 8.55% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 8.29% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 4.73% | 1,626,483.25 |
| ChangchaiGroupSettlementCenter | Intercoursefunds | 1,140,722.16 | Over5years | 3.32% | 1,140,722.16 |
| ChangzhouHuadiEngineeringGuaranteeCo.,Ltd. | Intercoursefunds | 624,000.00 | Within1year | 1.81% | 12,480.00 |
| Total | -- | 9,184,393.43 | -- | 26.70% | 8,572,873.43 |
7.InventoryWhethertheCompanyneedstocomplywiththerequirementsofrealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Rawmaterials | 135,917,741.48 | 5,567,303.76 | 130,350,437.72 | 134,712,519.83 | 5,559,513.66 | 129,084,129.60 |
| Materialsprocessedoncommission | 14,693,980.07 | 71,952.26 | 14,622,027.81 | 14,065,866.52 | 68,876.57 | 14,065,866.52 |
| Goodsinprocess | 180,629,930.97 | 25,366,513.61 | 155,263,417.36 | 134,454,109.88 | 18,512,449.08 | 115,941,660.80 |
| Finishedgoods | 273,895,475.17 | 14,223,733.63 | 259,671,741.54 | 361,975,004.89 | 15,261,416.17 | 346,713,588.72 |
| Lowpricedandeasilywornarticles | 1,802,652.69 | 1,155,356.04 | 647,296.65 | 1,906,803.53 | 1,031,708.62 | 875,094.91 |
| Total | 606,939,780.38 | 46,384,859.30 | 560,554,921.08 | 647,114,304.65 | 40,433,964.10 | 606,680,340.55 |
(2)FallingPriceReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Other | Reversalorwrite-off | Other | |||
| Rawmaterials | 5,559,513.66 | 150,326.35 | 142,536.25 | 5,567,303.76 | ||
| Materialsprocessedon | 68,876.57 | 65,088.17 | 62,012.48 | 71,952.26 | ||
| commission | ||||||
| Goodsinprocess | 18,512,449.08 | 6,956,428.76 | 102,364.23 | 25,366,513.61 | ||
| Finishedgoods | 15,261,416.17 | 333,390.12 | 1,371,072.66 | 14,223,733.63 | ||
| Lowpricedandeasilywornarticles | 1,031,708.62 | 351,329.62 | 227,682.20 | 1,155,356.04 | ||
| Total | 40,433,964.10 | 7,856,563.02 | 1,905,667.82 | 46,384,859.30 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories
8.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 23,689,000.10 | 22,534,134.72 |
| Privateplacementofintermediaryagencyfees | 2,358,490.56 | |
| Prepaidcorporateincometax | 2,240,396.88 | |
| Prepaidexpense | 76,507.64 | 80,070.32 |
| Other | 88,828.04 | 86,270.24 |
| Total | 23,854,335.78 | 27,299,362.72 |
9.Long-termEquityInvestment
Unit:RMB
| Investees | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
| Additionalinvestment | Reducedinvestment | Gainorlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Cashbonusorprofitannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
| Associatedenterprises | |||||||||||
| Beijing | 0 | 0 | 44,182 | ||||||||
| TsinghuaIndustrialInvestmentManagementCo.,Ltd. | .50 | |||
| Subtotal | 0 | 0 | 44,182.50 | |
| Total | 0 | 0 | 44,182.50 |
10.OtherEquityInstrumentInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 145,924,691.82 | 102,198,950.87 |
| Otherequityinstrumentinvestmentmeasuredbyfairvalue | 664,665,000.00 | 582,939,000.00 |
| Total | 810,589,691.82 | 685,137,950.87 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
| Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
| FotonMotorCo.,Ltd. | 229,032,500.00 | Non-tradingequityinvestment | ||||
| BankofJiangsu | 7,394,400.00 | 33,141,600.00 | Non-tradingequityinvestment | |||
| ChangzhouSynergetic | 45,924,691.82 | Non-tradingequityinvestment |
| InnovationPrivateEquityFund(LimitedPartnership) | ||
| Total | 7,394,400.00 | 308,098,791.82 |
Othernotes:
Thecorporatesecuritiesofaccommodationbusinessstillonlendingattheperiod-end:6,900,000sharesofFotonMotorCo.,Ltd.
12.OtherNon-currentFinancialAssets
Unit:RMB
12.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Total |
| I.Originalcarryingvalue | ||
| 1.Beginningbalance | 87,632,571.14 | 87,632,571.14 |
| 2.Increasedamountoftheperiod | ||
| (1)Outsourcing | ||
| (2)Transferfrominventories/fixedassets/constructioninprogress |
| Item | Endingbalance | Beginningbalance |
| JiangsuLianceElectromechanicalTechnologyCo.,Ltd. | 94,752,000.00 | 7,200,000.00 |
| KailongHighTechnologyCo.,Ltd. | 39,408,900.00 | 38,282,105.00 |
| GuizhouWeimenPharmaceuticalCo.,Ltd. | 200,104.80 | |
| GuizhouAndaTechnologyEnergyCo.,Ltd. | 195,297.49 | |
| HenanLantianGasCo.,Ltd. | 286,041.76 | 160,744.76 |
| HebeiSongheRenewableResourcesCo.,Ltd. | 104,699.44 | 104,699.44 |
| AnhuiHaofangElectromechanicalCo.,Ltd. | 89,987.14 | |
| JiangsuHosunNewEnergyTechnologyCo.,Ltd. | 112,500,000.00 | 52,500,000.00 |
| GuilinStarsScienceAndTechnologyCo.,Ltd. | 3,600,000.00 | |
| Total | 250,651,641.20 | 98,732,938.63 |
| (3)Enterprisecombinationincrease | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 87,632,571.14 | 87,632,571.14 |
| II.Accumulativedepreciationandaccumulativeamortization | ||
| 1.Beginningbalance | 41,393,245.11 | 41,393,245.11 |
| 2.Increasedamountoftheperiod | 1,104,170.40 | 1,104,170.40 |
| (1)Withdrawaloramortization | 1,104,170.40 | 1,104,170.40 |
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 42,497,415.51 | 42,497,415.51 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod | ||
| (1)Withdrawal | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue | ||
| 1.Endingcarryingvalue | 45,135,155.63 | 45,135,155.63 |
| 2.Beginningcarryingvalue | 46,239,326.03 | 46,239,326.03 |
13.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 427,241,110.69 | 454,181,555.68 |
| Disposaloffixedassets | ||
| Total | 427,241,110.69 | 454,181,555.68 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 465,428,975.71 | 996,970,879.65 | 16,939,308.01 | 42,124,393.11 | 1,521,463,556.48 |
| 2.Increasedamountoftheperiod | 0.00 | 15,884,743.80 | 367,395.61 | 306,526.65 | 16,558,666.06 |
| (1)Purchase | 4,791,943.04 | 367,395.61 | 306,526.65 | 5,465,865.30 | |
| (2)Transferfromconstructioninprogress | 11,092,800.76 | 0.00 | 0.00 | 11,092,800.76 | |
| (3)Enterprisecombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 0.00 | 2,640,642.55 | 1,609,285.56 | 1,920,409.32 | 6,170,337.43 |
| (1)Disposalorscrap | 2,640,642.55 | 1,609,285.56 | 1,920,409.32 | 6,170,337.43 | |
| 4.Endingbalance | 465,428,975.71 | 1,010,214,980.90 | 15,697,418.06 | 40,510,510.44 | 1,531,851,885.11 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 298,167,122.41 | 718,498,347.70 | 13,464,995.78 | 36,670,860.66 | 1,066,801,326.55 |
| 2.Increasedamountoftheperiod | 8,161,561.59 | 29,723,533.18 | 549,419.23 | 1,492,918.35 | 39,927,432.35 |
| (1)Withdrawal | 8,161,561.59 | 29,723,533.18 | 549,419.23 | 1,492,918.35 | 39,927,432.35 |
| 3.Decreasedamountoftheperiod | 0.00 | 1,112,115.65 | 677,756.12 | 808,786.96 | 2,598,658.73 |
| (1)Disposalor | 1,112,115.65 | 677,756.12 | 808,786.96 | 2,598,658.73 |
14.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 99,529,334.27 | 44,844,896.77 |
| Engineeringmaterials | 7,785,871.49 | 21,657,535.64 |
| Total | 107,315,205.76 | 66,502,432.41 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| scrap | |||||
| 4.Endingbalance | 306,328,684.00 | 747,109,765.23 | 13,336,658.89 | 37,354,992.05 | 1,104,130,100.17 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 480,674.25 | 480,674.25 | |||
| 2.Increasedamountoftheperiod | 0.00 | ||||
| (1)Withdrawal | 0.00 | ||||
| 3.Decreasedamountoftheperiod | 0.00 | ||||
| (1)Disposalorscrap | 0.00 | ||||
| 4.Endingbalance | 480,674.25 | 480,674.25 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 159,100,291.71 | 262,624,541.42 | 2,360,759.17 | 3,155,518.39 | 427,241,110.69 |
| 2.Beginningcarryingvalue | 167,261,853.30 | 277,991,857.70 | 3,474,312.23 | 5,453,532.45 | 454,181,555.68 |
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 1,128,887.90 | 1,128,887.90 | 1,128,887.90 | 1,128,887.90 | ||
| Relocationprojectoflightengineandcasting | 89,825,596.83 | 89,825,596.83 | 40,307,243.35 | 40,307,243.35 | ||
| Equipmenttobeinstalledandpaymentforprojects | 8,574,849.54 | 8,574,849.54 | 3,408,765.52 | 3,408,765.52 | ||
| Total | 99,529,334.27 | 99,529,334.27 | 44,844,896.77 | 44,844,896.77 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| Expansioncapacityofmulti-cylinder(The | 79,000,000.00 | 1,128,887.90 | 1,128,887.90 | Uncompleted | Self-funded |
| 2ndPeriod) | |||||||||
| Relocationprojectoflightengineandcasting | 474,706,000.00 | 40,307,243.35 | 49,518,353.48 | 89,825,596.83 | 18.92% | Uncompleted | Raisedfunds | ||
| Total | 553,706,000.00 | 41,436,131.25 | 49,518,353.48 | 90,954,484.73 | -- | -- | -- |
(3)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Engineeringmaterials | 7,785,871.49 | 7,785,871.49 | 21,657,535.64 | 21,657,535.64 | ||
| Total | 7,785,871.49 | 7,785,871.49 | 21,657,535.64 | 21,657,535.64 | ||
15.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 206,783,546.68 | 14,067,915.16 | 5,488,000.00 | 1,087,042.79 | 227,426,504.63 |
| 2.Increasedamountoftheperiod | 0.00 | 800,856.32 | 0.00 | 0.00 | 800,856.32 |
| (1)Purchase | 800,856.32 | 800,856.32 |
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 206,783,546.68 | 14,868,771.48 | 5,488,000.00 | 1,087,042.79 | 228,227,360.95 |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 54,545,676.02 | 11,879,287.65 | 2,103,733.18 | 27,176.07 | 68,555,872.92 |
| 2.Increasedamountoftheperiod | 2,282,064.18 | 571,957.47 | 274,399.98 | 13,588.04 | 3,142,009.67 |
| (1)Withdrawal | 2,282,064.18 | 571,957.47 | 274,399.98 | 13,588.04 | 3,142,009.67 |
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 56,827,740.20 | 12,451,245.12 | 2,378,133.16 | 40,764.11 | 71,697,882.59 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 149,955,806.48 | 2,417,526.36 | 3,109,866.84 | 1,046,278.68 | 156,529,478.36 |
| 2.Beginningcarryingvalue | 152,237,870.66 | 2,188,627.51 | 3,384,266.82 | 1,059,866.72 | 158,870,631.71 |
16.Long-termPrepaidExpenses
| Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
| Furnitureofemployeedormitory,etc. | 13,693.20 | 53,941.59 | 16,261.85 | 51,372.94 | |
| Total | 13,693.20 | 53,941.59 | 16,261.85 | 51,372.94 |
17.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Baddebtprovision | 6,544,083.47 | 981,314.04 | 6,544,083.47 | 981,314.04 |
| Deductibleloss | 21,670,394.08 | 3,250,559.11 | 21,670,394.08 | 3,250,559.11 |
| Total | 28,214,477.55 | 4,231,873.15 | 28,214,477.55 | 4,231,873.15 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Changesinfairvalueofotherequityinstrumentinvestment | 626,019,691.80 | 93,902,953.77 | 500,567,950.87 | 75,085,192.63 |
| Changesinfairvalueoftradingfinancialassets | 18,481,109.00 | 4,600,250.05 | 18,481,109.00 | 4,600,250.05 |
| Changesinfairvalueofothernon-currentfinancialassets | 142,054,092.00 | 27,638,523.00 | 2,500,000.00 | 375,000.00 |
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 4,074,374.26 | 611,156.14 | 4,074,374.26 | 611,156.14 |
| Total | 790,629,267.06 | 126,752,882.96 | 525,623,434.13 | 80,671,598.82 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Baddebtprovision | 210,056,859.88 | 191,416,942.31 |
| Fallingpricereservesofinventories | 46,384,859.30 | 40,433,964.10 |
| Total | 256,441,719.18 | 231,850,906.41 |
18.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Advancespaymentofequipments | 48,860,427.66 | 48,860,427.66 | 19,971,006.56 | 19,971,006.56 | ||
| Total | 48,860,427.66 | 48,860,427.66 | 19,971,006.56 | 19,971,006.56 | ||
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 | |
| Total | 17,000,000.00 | 22,000,000.00 |
(2)ThereWasNoShort-termBorrowingsOverduebutUnpaid.
20.NotesPayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 697,664,500.00 | 595,346,000.00 |
| Total | 697,664,500.00 | 595,346,000.00 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
21.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 636,843,860.83 | 612,757,392.46 |
| Total | 636,843,860.83 | 612,757,392.46 |
(2)ThereWasNoSignificantAccountsPayableAgingoverOneYear
22.AdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 0.00 | 661,612.17 |
| Total | 0.00 | 661,612.17 |
23.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Contractliabilities | 43,385,577.76 | 35,944,517.15 |
| Total | 43,385,577.76 | 35,944,517.15 |
24.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 50,127,161.47 | 133,595,897.09 | 168,959,505.85 | 14,763,552.71 |
| II.Post-employmentbenefit-definedcontributionplans | 13,309,768.09 | 13,309,768.09 | ||
| III.Terminationbenefits | 50,569.00 | 50,569.00 | ||
| Total | 50,127,161.47 | 146,956,234.18 | 182,319,842.94 | 14,763,552.71 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 41,908,627.17 | 111,725,426.48 | 147,070,044.24 | 6,564,009.41 |
| 2.Employeewelfare | 1,592.74 | 1,599,478.57 | 1,599,478.57 | 1,592.74 |
| 3.Socialinsurance | 7,734,560.48 | 7,734,560.48 | ||
| Ofwhich:Medicalinsurancepremiums | 6,379,795.10 | 6,379,795.10 | ||
| Work-relatedinjuryinsurance | 717,233.37 | 717,233.37 | ||
| Maternityinsurance | 637,532.01 | 637,532.01 | ||
| 4.Housingfund | 9,972,779.56 | 9,972,779.56 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 8,216,941.56 | 2,563,652.00 | 2,582,643.00 | 8,197,950.56 |
| Total | 50,127,161.47 | 133,595,897.09 | 168,959,505.85 | 14,763,552.71 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 12,905,516.52 | 12,905,516.52 | ||
| 2.Unemploymentinsurance | 404,251.57 | 404,251.57 | ||
| 3.Enterpriseannuities | ||||
| Total | 13,309,768.09 | 13,309,768.09 |
25.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 844,372.51 | 461.22 |
| Corporateincometax | 836,755.28 | 531,557.38 |
| Personalincometax | 133,337.31 | 114,208.40 |
| Urbanmaintenanceandconstructiontax | 1,012,349.35 | 879,346.31 |
| Propertytax | 190,780.68 | 94,863.50 |
| Landusetax | 202,491.42 | 100,135.19 |
| Stampduty | 82,653.54 | 6,851.35 |
| EducationSurcharge | 203,892.57 | 35,023.81 |
| Comprehensivefees | 1,029,422.25 | 1,075,134.76 |
| Environmentalprotectiontax | 31,903.49 | 31,903.49 |
| Total | 4,567,958.40 | 2,869,485.41 |
26.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 233,854,764.98 | 193,653,642.25 |
| Total | 237,746,198.81 | 197,545,076.08 |
(1)DividendsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
| Interestofpreferredshares/perpetualbondclassifiedasequityinstrument | ||
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
| Other |
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 4,009,371.60 | 3,406,041.83 |
| Intercoursefundsamongunits | 12,532,244.46 | 9,309,617.95 |
| Intercoursefundsamongindividuals | 1,472,274.84 | 1,256,848.49 |
| Salesdiscountandthreeguarantees | 173,475,705.45 | 147,739,746.71 |
| Other | 42,365,168.63 | 31,941,387.27 |
| Total | 233,854,764.98 | 193,653,642.25 |
2)SignificantOtherPayablesAgingoverOneYearThesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
27.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 352,652.58 | 365,047.65 |
| Transportationstoragefee | 254,652.69 | 260,055.33 |
| Electriccharge | 3,421,417.25 | 1,972,314.61 |
| Taxtobetransferred | 2,409,885.20 | 2,636,529.53 |
| Total | 6,438,607.72 | 5,233,947.12 |
28.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentgrants | 56,949,737.60 | 56,949,737.60 | Governmentappropriation |
| Total | 3,891,433.83 | 3,891,433.83 |
| Total | 56,949,737.60 | 56,949,737.60 | -- |
Iteminvolvinggovernmentgrants:
Unit:RMB
| Item | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Nationalmajorprojectspecialallocations | 28,770,000.00 | 28,770,000.00 | Relatedtoassets | |||||
| Removecompensation | 19,179,737.60 | 19,179,737.60 | Relatedtoassets | |||||
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 9,000,000.00 | 9,000,000.00 | Relatedtoassets | |||||
| Total | 56,949,737.60 | 56,949,737.60 |
29.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 561,374,326.00 | 144,318,181.00 | 144,318,181.00 | 705,692,507.00 | |||
30.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium(premiumonstock) | 143,990,690.24 | 476,347,552.97 | 620,338,243.21 | |
| Othercapitalreserves | 20,337,975.19 | 20,337,975.19 | ||
| Total | 164,328,665.43 | 476,347,552.97 | 640,676,218.40 |
Reasonsforchanges:
On17December2020,theCompanyreceivedApprovalofChangchaiCo.,Ltd.Non-publicIssuanceofShares(Z.J.X.K[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedtheCompany'snon-publicissuanceofnomorethan168,412,297newshares.TheCompanyoffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.TheissuingpricewasRMB4.40pershare,totalamountraisedwasRMB634,999,936.40,andthenetamountraisedwasRMB620,665,733.97,ofwhich,thenewly-addedregisteredcapitalwasRMB144,318,181.00andthecapitalreservewasRMB476,347,552.97.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.Fordetails,pleaserefertotheReportonNon-publicIssuancebyChangchaiCo.,Ltd.Non-publicIssuanceReportandListingDeclarationdisclosedbytheCompanyonwww.cninfo.com.cnon1July2021.
31.OtherComprehensiveIncome
Unit:RMB
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrent | Less:Recordedinothercomprehensiveincomeinprior | Less:Recordedinothercomprehensive | Less:Incometaxexpense | AttributabletoownersoftheCompanyasthe | Attributabletonon-controllinginterestsafter | |||
| Period | periodandtransferredinprofitorlossintheCurrentPeriod | incomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | parentaftertax | tax | ||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 425,482,758.24 | 125,451,740.95 | 18,817,761.14 | 106,633,979.81 | 532,116,738.05 | |||
| Ofwhich:Changescausedbyre-measurementsondefinedbenefitpensionschemes | ||||||||
| Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||||||||
| Changesinfairvalueofotherequityinstrumentinvestment | 425,482,758.24 | 125,451,740.95 | 18,817,761.14 | 106,633,979.81 | 532,116,738.05 | |||
| Changesinfairvalueofcorporatecreditrisk | ||||||||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | ||||||||
| Ofwhich:Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | ||||||||
| Changesinfairvalueofinvestmentinotherdebtobligations |
| Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | |||||||
| Creditdepreciationreservesofinvestmentinotherdebtobligations | |||||||
| Reservesforcashflowhedges | |||||||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | |||||||
| Totalofothercomprehensiveincome | 425,482,758.24 | 125,451,740.95 | 18,817,761.14 | 106,633,979.81 | 532,116,738.05 |
32.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 18,812,986.55 | 18,812,986.55 | ||
| Total | 18,812,986.55 | 18,812,986.55 |
33.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 312,294,673.24 | 312,294,673.24 | ||
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 325,451,531.14 | 325,451,531.14 |
34.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 777,899,079.66 | 726,689,929.10 |
| Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | 1,651,336.26 | |
| Beginningbalanceofretainedearningsafteradjustments | 777,899,079.66 | 728,341,265.36 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 129,189,065.60 | 27,690,311.06 |
| Less:Withdrawalofstatutorysurplusreserves | 3,222,997.42 | |
| Withdrawalofdiscretionalsurplusreserves | ||
| Withdrawalofgeneralreserve | ||
| Dividendofordinarysharespayable | ||
| Dividendsofordinarysharestransferredassharecapital | ||
| RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedprofitsintheCurrentPeriod | 348,368.67 | |
| Endingretainedearnings | 907,088,145.26 | 756,379,945.09 |
35.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,475,253,150.96 | 1,265,262,684.42 | 1,149,231,063.13 | 974,846,243.01 |
| Otheroperations | 21,917,304.84 | 18,852,045.04 | 18,224,719.17 | 10,996,475.67 |
| Total | 1,497,170,455.80 | 1,284,114,729.46 | 1,167,455,782.30 | 985,842,718.68 |
Informationrelatedtoperformanceobligations:performingaccordingtothecontractofferInformationrelatedtotransactionvalueassignedtoresidualperformanceobligations:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0attheperiod-end.
36.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 1,026,604.02 | 1,188,616.29 |
| Educationsurcharge | 733,288.56 | 849,011.61 |
| Propertytax | 1,887,353.62 | 2,212,278.84 |
| Landusetax | 1,817,778.95 | 1,804,439.63 |
| Vehicleandvesselusetax | 270,741.50 | 300.00 |
| Stampduty | 402,556.65 | 394,779.95 |
| Environmenttax | 60,179.21 | 60,179.21 |
| Other | 56,775.69 | 42,000.00 |
| Total | 6,255,278.20 | 6,551,605.53 |
37.SellingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Officeexpenses | 4,736,523.65 | 4,629,025.89 |
| Employeebenefits | 17,526,685.96 | 13,886,073.89 |
| Salespromotionalexpense | 6,212,342.60 | 5,545,750.00 |
| Threeguarantees | 28,141,207.55 | 27,893,180.55 |
| Other | 9,558,048.08 | 11,438,328.19 |
| Total | 66,174,807.84 | 63,392,358.52 |
38.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Officeexpenses | 7,630,682.21 | 6,035,491.45 |
| Employeebenefits | 25,708,439.30 | 17,294,526.56 |
| Depreciationandamortization | 5,279,293.31 | 5,263,681.34 |
| Repaircharge | 928,742.39 | 138,950.52 |
| Other | 8,461,323.27 | 4,993,235.00 |
| Total | 48,008,480.48 | 35,609,030.74 |
39.DevelopmentCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 25,574,380.45 | 19,721,929.05 |
| Employeebenefits | 11,406,908.14 | 9,551,798.98 |
| Depreciationandamortization | 1,944,857.24 | 2,063,723.78 |
| Entrusteddevelopmentcharges | 4,716,981.13 | 32,231.13 |
| Other | 1,493,727.00 | 968,567.84 |
| Total | 45,136,853.96 | 32,338,250.78 |
40.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 4,437,018.11 | 3,340,575.91 |
| Interestincome | 4,502,088.58 | 2,792,152.75 |
| Netforeignexchangegainsorlosses | 1,608,275.04 | -1,097,813.30 |
| Other | 1,099,425.68 | -170,269.84 |
| Total | 2,642,630.25 | -719,659.98 |
41.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Governmentgrants | 406,454.70 | 2,657,218.07 |
| Other(Additionaldeductionofinputtax) | 20,746.75 |
42.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | ||
| Investmentincomefromdisposaloflong-termequityinvestment | ||
| Investmentincomefromholdingoftradingfinancialassets | ||
| Investmentincomefromdisposaloftradingfinancialassets | 250,514.11 | |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 7,394,400.00 | 4,983,988.73 |
| Investmentincomefromholdingofheld-to |
| –maturityinvestment | ||
| Investmentincomefromholdingofavailable-for-salefinancialassets | ||
| Investmentincomefromdisposalofavailable-for-salefinancialassets | ||
| Investmentincomefromdisposalofheld-to–maturityinvestment | ||
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
| Interestincomefromholdingofinvestmentindebtobligations | ||
| Interestincomefromholdingofinvestmentinotherdebtobligations | ||
| Investmentincomefromdisposalofinvestmentinotherdebtobligations | ||
| Investmentincomefromholdingofothernon-currentfinancialassets | 149,121.58 | |
| Investmentincomefromdisposaloffinancialproductsofsecuritiescompany | 251,486.73 | |
| Otherincomefromholdingofotherequityinstrumentinvestments | 797,324.76 | |
| Forwardincomefromforeignexchangesettlement | 82,262.00 | |
| Total | 8,524,500.87 | 5,384,597.04 |
43.GainonChangesinFairValue
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Othernon-currentfinancialassets | 122,554,092.00 | |
| Total | 122,554,092.00 | 0.00 |
44.CreditImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofotherreceivables | 64,194.87 | 622,346.72 |
| Baddebtlossofaccountsreceivable | -12,559,627.15 | -6,601,368.01 |
| Total | -12,495,432.28 | -5,979,021.29 |
45.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| I.Baddebtloss | ||
| II.Lossoninventoryvaluationandcontractperformancecost | -5,950,895.20 | -16,343,805.00 |
| III.Impairmentlossonlong-termequityinvestment | ||
| IV.Impairmentlossoninvestmentproperty | ||
| V.Impairmentlossonfixedassets | ||
| VI.Impairmentlossonengineeringmaterials | ||
| VII.Impairmentlossonconstructioninprogress | ||
| VIII.Impairmentlossonproductivelivingassets | ||
| IX.Impairmentlossonoilandgasassets | ||
| X.Impairmentlossonintangibleassets | ||
| XI.Impairmentlossongoodwill | ||
| XII.Other | ||
| Total | -5,950,895.20 | -16,343,805.00 |
46.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Disposalincomeoffixedassets | -751,441.20 | 10,977.61 |
47.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Incomefrompenalty | 246,187.33 | 181,076.00 | 246,187.33 |
| Insuranceindemnity | 115,000.00 | 115,000.00 | |
| Other | 488,996.26 | 287,214.78 | 488,996.26 |
| Total | 850,183.59 | 468,290.78 | 850,183.59 |
48.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Retirementlossofnon-currentassets | 41,983.82 | 1,725.58 | 41,983.82 |
| Other | 291,323.90 | 393,650.10 | 291,323.90 |
| Total | 333,307.72 | 395,375.68 | 333,307.72 |
49.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 1,023,856.84 | 3,442,263.52 |
| Deferredincometaxexpense | 27,263,523.00 | -1,044,951.94 |
| Total | 28,287,379.84 | 2,397,311.58 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | 157,641,830.37 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 23,646,274.56 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 10,948,598.36 |
| Influenceofincometaxbeforeadjustment | -6,307,493.08 |
| Influenceofnon-taxableincome | |
| Influenceofnon-deductablecosts,expensesandlosses | |
| InfluenceofdeductablelossesofunrecognizeddeferredincometaxatthebeginningoftheReportingPeriod | |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | |
| Incometaxexpense | 28,287,379.84 |
50.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 406,454.70 | 2,125,031.26 |
| Otherintercoursesincash | 2,956,131.54 | 2,450,124.78 |
| Interestincome | 4,502,088.58 | 2,792,152.75 |
| Other | 402,565.98 | 377,095.40 |
| Total | 8,267,240.80 | 7,744,404.19 |
(2)CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingandadministrativeexpensepaidincash | 79,257,764.77 | 71,425,919.05 |
| Handlingcharges | 1,776,237.12 | 850,745.30 |
| Other | 896,524.70 | 841,135.29 |
| Othertransactions | 95,689.96 | 0.00 |
| Total | 82,026,216.55 | 73,117,799.64 |
(3)CashGeneratedfromOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Depositofconstructionunit | 220,217.55 | 97,150.00 |
| Total | 220,217.55 | 97,150.00 |
(4)CashUsedinOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Projectmargin | 50,000.00 | 930,300.00 |
| Total | 50,000.00 | 930,300.00 |
(5)CashGeneratedfromOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidiesforprojectloans | 1,391,000.00 | |
| Total | 1,391,000.00 |
(6)CashUsedinOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Privateplacement | 12,694,718.67 | |
| Total | 12,694,718.67 |
51.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
| Netprofit | 129,354,450.53 | 27,867,794.73 |
| Add:Provisionforimpairmentofassets | 18,446,327.48 | 22,322,826.29 |
| Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 39,927,432.35 | 39,921,116.37 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 3,142,009.67 | 2,325,255.12 |
| Amortizationoflong-termdeferredexpenses | 16,261.85 | 19,902.30 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | 751,441.20 | -10,977.61 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | 41,983.82 | 1,725.58 |
| Lossesonthechangesinfairvalue(gainsby“-”) | -122,554,092.00 | |
| Financialexpenses(gainsby“-”) | 2,642,630.25 | 3,702,027.93 |
| Investmentlosses(gainsby“-”) | -824,500.87 | -5,384,597.04 |
| Decreaseindeferredincometaxassets(increaseby“-”) | 0 | -956,111.39 |
| Increaseindeferredincometaxliabilities(decreaseby“-”) | 45,768,261.14 | -88,840.55 |
| Decreaseininventory(increaseby“-”) | 46,125,419.47 | 28,810,293.38 |
| Decreaseinaccountsreceivablefromoperatingactivities | -382,207,027.61 | -219,167,832.28 |
| (increaseby“-”) | ||
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 145,278,539.35 | 93,944,576.05 |
| Other | -18,463,256.69 | -13,661,888.13 |
| Netcashflowsgeneratedfromoperatingactivities | -92,554,120.06 | -20,354,729.25 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | -- | |
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | -- | |
| Endingbalanceofcash | 1,047,274,087.46 | 493,637,357.80 |
| Less:Beginningbalanceofcash | 629,939,540.50 | 545,959,998.20 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 417,334,546.96 | -52,322,640.40 |
(2)CashandCashEquivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 1,047,274,087.46 | 629,939,540.50 |
| Including:Cashonhand | 194,231.28 | 287,505.91 |
| Bankdepositondemand | 1,037,937,290.68 | 620,966,786.57 |
| Othermonetaryassetsondemand | 9,142,565.50 | 8,685,248.02 |
| Accountsdepositedinthecentralbankavailableforpayment | ||
| Depositsinotherbanks | ||
| Accountsofinterbank | ||
| II.Cashequivalents | ||
| Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
| III.Endingbalanceofcashandcashequivalents | 1,047,274,087.46 | 629,939,540.50 |
| Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
52.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Endingcarryingvalue | Reasonforrestriction |
| Monetaryassets | 213,108,704.75 | Ascashdepositforbankacceptancebill |
| Housesandbuildings | 1,551,119.26 | Mortgagedforborrowingsfrombanks |
| Landuseright | 946,766.81 | Mortgagedforborrowingsfrombanks |
| Machineryequipment | 28,348,410.34 | Mortgagedforborrowingsfrombanks |
| Total | 243,955,001.16 | -- |
53.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | -- | -- | 94,797,968.28 |
| Ofwhich:USD | 14,597,155.42 | 6.4601 | 94,299,083.73 |
| HKD | 285,402.45 | 0.8321 | 237,483.38 |
| SGD | 54,427.95 | 4.8027 | 261,401.12 |
| JPY | 1 | 0.058428 | 0.06 |
| Accountsreceivable | -- | -- | 54,390,616.40 |
| Ofwhich:USD | 8,419,469.73 | 6.4601 | 54,390,616.40 |
| Accountspayable | -- | -- | 1,954.83 |
| Ofwhich:USD | 302.6 | 6.4601 | 1,954.83 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
54.GovernmentGrants
(1)BasicInformationonGovernmentGrants
Unit:RMB
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Industrialandinformationindustrytransformationandupgradingsubsidies | 150,000.00 | Otherincome | 150,000.00 |
| InventiongrantsfromtheIntellectualPropertyProtectionCenter | 4,000.00 | Otherincome | 4,000.00 |
| Productionsubsidies | 182,454.70 | Otherincome | 182,454.70 |
| Comprehensiveawardsandsubsidiesfortechnicaltransformationofindustrialenterprises | 70,000.00 | Otherincome | 70,000.00 |
ReturnofGovernmentGrants
□Applicable√NotapplicableVIII.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 | |
| ChangzhouXingshengPropertyManagementCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up | |
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 195,175.38 | 20,007,034.84 | |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 5.00% | -29,790.45 | -343,060.76 |
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. | 52,502,609.07 | 24,621,111.04 | 77,123,720.11 | 27,106,133.00 | 0 | 27,106,133.00 | 49,267,159.00 | 25,044,012.17 | 74,311,171.17 | 24,781,522.52 | 0 | 24,781,522.52 |
| ChangzhouChangchaiHous | 24,469,563.98 | 367,750.30 | 24,837,314.28 | 31,698,529.47 | 0 | 31,698,529.47 | 26,356,205.03 | 423,493.77 | 26,779,698.80 | 33,045,105.00 | 0 | 33,045,105.00 |
Unit:RMB
hengAgriculturalEquipmentCo.,Ltd.Name
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 30,436,079.88 | 487,938.46 | 487,938.46 | -1,981,901.87 | 24,477,850.44 | 469,127.87 | 469,127.87 | 1,744,069.06 |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 9,618,584.31 | -595,808.99 | -595,808.99 | 4,361,727.35 | 9,292,539.79 | -203,349.52 | -203,349.52 | -784,927.87 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018and3December2020,newpartnerswereadded.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhu,TongYinxinandAnhuiHaiyunzhouEquityInvestmentPartnershipEnterprise(Limited).InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhou
XietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.IX.TheRiskRelatedtoFinancialInstrumentsThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRiskCreditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.(II)LiquidityRiskLiquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.(III)MarketRiskMarketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,includingforeignexchangeraterisk,interestraterisk.
1.InterestRateRiskInterestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRiskForeignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.
X.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| 1.Tradingfinancialassets | 134,446,937.00 | 126,004,704.16 | 260,451,641.16 | |
| (I)Financialassetsatfairvaluethroughprofitorloss | 134,446,937.00 | 126,004,704.16 | 260,451,641.16 | |
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 134,446,937.00 | 126,004,704.16 | 260,451,641.16 | |
| (3)Derivativefinancialassets | ||||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherbondinvestment | ||||
| (III)Otherequityinstrumentinvestment | 664,665,000.00 | 145,924,691.82 | 810,589,691.82 | |
| (2)Equityinstrumentinvestment | ||||
| (IV)Investmentproperty | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuserightheldandplannedtobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Totalassetsconsistentlymeasuredbyfairvalue | 799,111,937.00 | 0.00 | 271,929,395.98 | 1,071,041,332.98 |
| (VI)Tradingfinancialliabilities | ||||
| Ofwhich:Issuedtradingbonds | ||||
| Derivativefinancialliabilities | ||||
| Other | ||||
| (VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
| Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
| II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
| (1)Assetsheldforsale | ||||
| Totalassetsinconsistentlymeasuredbyfairvalue | ||||
| Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Forthelistedcompanystocksheldbythecompanyintheinvestmentofotherequityinstrumentsmeasuredatfairvalue,theclosingpriceattheendoftheperiodwasthebasisforthemeasurementoffairvalue.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)Amongthetradingfinancialassets,thebasicassetsinvestedinfinancialproductsincludebondassets,depositassets,fundassets,etc.Theportfolioofinvestmentismanageddynamically,andthechangeinthefairvalueoffinancialproductsisdifficulttomeasure,sothecostamountisadoptedtoconfirmitsfairvalue.Fortheunsettledforwardsettlementcontractattheendoftheperiod,itsfairvaluewasmeasuredbasedonthevaluationofthebank.
(2)IntermsofsharesofNEEQunlistedpubliccompaniesheldbytheCompany,asfortheequityinstrumentinvestmentwithinactivemarkettransactions,duetothemarketvalueofsharescannotbereflectedbythemarkettransactionpricewiththelowvolumeofholding,sotheappraisementtotheinvestedcompaniesbyincomeormarketapproachwasunfeasible.Therefore,theinvestmentcostshallbetreatedasreasonableestimationoffairvaluetomeasureattheperiod-end.JiangsuHoushengNewEnergyTechnologyCo.,Ltd.entrustedanappraisalagencytoevaluatethevalueofallitsshareholders’equityduetotheneedforcapitalincreaseandshareexpansionin2021,andconfirmedthepremiumrateofcapitalincreasebasedontheappreciationrateoftheequityvalue(on16June2021,thecompany’s
investorssignedaninvestmentagreement).Therefore,attheendoftheperiod,thefairvalueoftheequityinvestmenthadbeenadjustedandconfirmedaccordingly.
(3)Amongotherequityinvestmentinstruments,thetotalinvestmentinChengduChangwanDieselEngineDistributionCo.,Ltd.,ChongqingWanzhouChangwanDieselEnginePartsCo.,Ltd.,ChangzhouEconomicandTechnologicalDevelopmentCompany,ChangzhouTractorCompany,ChangzhouEconomicCommissionIndustrialCapitalMutualAidAssociation,BeijingEngineeringMachineryAgriculturalMachineryCompanywasRMB1.21million,andthefairvaluewasRMB0.00duetothedifficultyinrecoveringtheinvestment.SinceitsestablishmentinOctober2017,ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)hasinvestedinJiangsuHoushengNewEnergyTechnologyCo.,Ltd.,andthechangeinfairvalueofthecompany'sequityheldbyithadincreasedtheequityofpartnersattheendoftheyear.Inaddition,thecompany'sbusinessenvironment,operatingconditions,andfinancialstatushadnotundergonemajorchanges.Therefore,thecompanydetermineditsfairvalueonthebasisofthenetbookassetsofthepartnershipattheendoftheperiod.XI.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:InformationontheCompanyastheparentOn22November2018,ChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiongratuitouslytransferredallthe170,845,236sharesoftheCompanyheldbyit(accountingfor30.43%ofthetotalsharesoftheCompany)toChangzhouInvestmentGroupCo.,Ltd.InaccordancewithChangzhouPeople’s
GovernmentDocument(CZF[2006]No.62),boththeCompanyandChangzhouInvestmentGroupCo.,Ltd.areenterpriseswhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,afterthesharetransfer,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.On6May2021,theCompanyreceivedtheLetterontheFreeTransferofState-ownedSharesofChangzhouInvestmentGroupCo.,Ltd.fromitscontrollingshareholder,ChangzhouInvestmentGroupCo.,Ltd.(hereinafterreferredtoasthe"InvestmentGroup").AccordingtotheguidingprincipleoftheNoticeofProvincialGovernmentonIssuingtheImplementationPlanforTransferringPartofState-ownedCapitaltoBoostSocialSecurityFundinJiangsuProvince(SZF[2020]No.27),theNoticeonTransferringPartofState-ownedCapitaltoCitiesandCountiestoBoostSocialSecurityFund(SCGM[2020]No.139)fromtheDepartmentofFinanceofJiangsuProvinceandotherfivedepartmentsandtheNoticeonTransferringPartofState-ownedCapitalatUrban(District)LeveltoBoostSocialSecurityFund(CCGM[2020]No.4)fromChangzhouFinanceBureauandotherfourdepartments,the10%state-ownedequityoftheInvestmentGroupheldbyChangzhouMunicipalPeople'sGovernmentistransferredtotheDepartmentofFinanceofJiangsuProvincefreeofcharge,andDepartmentofFinanceofJiangsuProvinceisentrustedwithspecialaccountmanagementofthetransferredstate-ownedequity.Thealterationofstate-ownedownershipandtheindustrialandcommercialregistrationofchangeshavebeencompleted.Theabove-mentionedtransferonlyaffectstheequitystructureoftheInvestmentGroupanddoesnotaffecttheequityoftheInvestmentGroupintheCompany.ChangzhouInvestmentGroupCo.,Ltd.remainsthecontrollingshareholderoftheCompanyandState-ownedAssetsSupervisionandAdministrationCommission(SASAC)ofChangzhouMunicipalPeople'sGovernmentremainstheactualcontrolleroftheCompany.
2.SubsidiariesoftheCompanyRefertoNoteVIIIfordetails.
3.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHoushengNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
| DonghaiSecuritiesCo.,Ltd. | ControlledbythesameCompanyastheparent |
XII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof30June2021,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
（1）ImportantContingenciesExistingontheBalanceSheetDateAsof30June2021,therewasnocontingencyfortheCompanytodisclose.
（2）IftheCompanyHasnoImportantContingenciestobeDisclosed,itShallAlsobeExplainedThecompanyhasnoimportantcontingenciestobedisclosed.XIII.EventsafterBalanceSheetDate
1.ProfitDistribution
Unit:RMB
| Profitsordividendstobedistributed | 0 |
2.NotestoOtherEventsafterBalanceSheetDateAsoftheapprovalissuedateoffinancialstatements,therewasnosignificanteventafterbalancesheetdatethatshallbedisclosed.XIV.OtherSignificantEvents
1.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegmentDuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommonmanagement,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
2.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-makingNo.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 | 33,550,765.92 | 3.31% | 31,655,179.09 | 94.35% | 1,895,586.83 | 33,543,441.92 | 7.29% | 31,647,855.09 | 94.35% | 1,895,586.83 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 29,870,525.05 | 2.95% | 27,974,938.22 | 93.65% | 1,895,586.83 | 29,870,525.05 | 6.50% | 27,974,938.22 | 93.65% | 1,895,586.83 |
| Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 3,680,240.87 | 0.36% | 3,680,240.87 | 100.00% | 0.00 | 3,672,916.87 | 0.80% | 3,672,916.87 | 100.00% | |
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 978,893,544.67 | 96.69% | 122,520,409.84 | 12.52% | 856,373,134.83 | 426,300,279.29 | 92.71% | 110,367,704.87 | 25.89% | 315,932,574.42 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 978,893,544.67 | 96.69% | 122,520,409.84 | 12.52% | 856,373,134.83 | 426,300,279.29 | 92.71% | 110,367,704.87 | 25.89% | 315,932,574.42 |
| Total | 1,012,444,310.59 | 100% | 154,175,588.93 | 15.23% | 858,268,721.66 | 459,843,721.21 | 100.00% | 142,015,559.96 | 30.88% | 317,828,161.25 |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod:
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| 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 | 2,254,860.60 | 2,175,814.38 | 96.49% | Expectedtodifficultlyrecover |
| Customer5 | 3,633,081.23 | 1,816,540.62 | 50.00% | Expectedtodifficultlyrecover |
| Customer6 | 3,279,100.00 | 3,279,100.00 | 100.00% | Difficulttorecover |
| Customer7 | 1,617,988.01 | 1,617,988.01 | 100.00% | Difficulttorecover |
| 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 | 1,553,208.52 | 1,553,208.52 | 100.00% | Difficulttorecover |
| Total | 29,870,525.05 | 27,974,938.22 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 856,992,523.68 | 17,139,850.47 | 2.00% |
| 1to2years | 11,494,835.88 | 574,741.79 | 5.00% |
| 2to3years | 2,248,492.74 | 337,273.91 | 15.00% |
| 3to4years | 4,685,265.65 | 1,405,579.70 | 30.00% |
| 4to5years | 1,023,656.89 | 614,194.13 | 60.00% |
| Over5years | 102,448,769.83 | 102,448,769.83 | 100.00% |
| Total | 978,893,544.67 | 122,520,409.84 | -- |
Notestothebasisforthedeterminationofthegroups:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsoccurredactually,amongwhichtheaccountsoccurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 857,284,261.14 |
| 1to2years | 10,214,785.13 |
| 2to3years | 4,198,242.30 |
| Over3years | 140,747,022.02 |
| 3to4years | 7,664,472.30 |
| 4to5years | 4,185,761.74 |
| Over5years | 128,896,787.98 |
| Total | 1,012,444,310.59 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 31,647,855.09 | 64,241.53 | 56,917.53 | 31,655,179.09 | ||
| Baddebtprovisionwithdrawnbygroup | 110,367,704.87 | 12,152,704.97 | 122,520,409.84 | ||
| Total | 142,015,559.96 | 12,216,946.50 | 56,917.53 | 154,175,588.93 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)ThereWasNoParticularsoftheActualVerificationofAccountsReceivableduringtheReportingPeriod
(4)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 559,214,901.98 | 55.23% | 11,184,298.04 |
| Customer2 | 56,638,430.22 | 5.59% | 1,132,768.60 |
| Customer3 | 40,930,712.14 | 4.04% | 818,614.24 |
| Customer4 | 26,775,895.61 | 2.64% | 535,517.91 |
| Customer5 | 19,053,675.15 | 1.88% | 381,073.50 |
| Total | 702,613,615.10 | 69.38% |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 20,870,644.87 | 24,327,355.36 |
| Total | 20,870,644.87 | 24,327,355.36 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| CashdepositandMargin | 4,200.00 | 4,200.00 |
| Intercoursefundsamongunits | 37,507,793.73 | 39,857,085.87 |
| Pettycashandborrowingsbyemployees | 1,016,523.69 | 673,198.96 |
| Other | 12,093,296.81 | 13,614,585.00 |
| Total | 50,621,814.23 | 54,149,069.83 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2021 | 29,821,714.47 | 29,821,714.47 | ||
| Balanceof1January2021intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | ||||
| ReversaloftheCurrentPeriod | 70,545.11 | 70,545.11 | ||
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof30June2021 | 29,751,169.36 | 29,751,169.36 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 10,593,552.12 |
| 1to2years | 8,658,952.63 |
| 2to3years | 1,496,325.48 |
| Over3years | 29,872,984.00 |
| 3to4years | 527,586.56 |
| 4to5years | 915,874.24 |
| Over5years | 28,429,523.20 |
| Total | 50,621,814.23 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 5,039,368.41 | 5,039,368.41 | ||||
| Baddebtprovisionwithdrawnbygroup | 24,782,346.06 | 70,545.11 | 24,711,800.95 | |||
| Total | 29,821,714.47 | 70,545.11 | 29,751,169.36 | |||
4)ParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod:No.
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| ChangzhouChangchai | Interco | 10,576,394.98 | Within1year | 20.89% | 597,635.547 |
| HoushengAgriculturalEquipmentCo.,Ltd. | ursefunds | withRMB1,161,229.20,1-2yearswithRMB8,378,639.04,2-3yearswithRMB1,036,526.74 | |||
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Intercoursefunds | 10,000,000.00 | Within1year | 19.75% | 200,000.00 |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 5.81% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 5.64% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 3.21% | 1,626,483.25 |
| Total | -- | 27,996,066.25 | -- | 55.30% | 8,217,306.82 |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 542,752,730.03 | 7,000,000.00 | 535,752,730.03 | 382,752,730.03 | 7,000,000.00 | 375,752,730.03 |
| Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
| Total | 542,796,912.53 | 7,044,182.50 | 535,752,730.03 | 382,796,912.53 | 7,044,182.50 | 375,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investee | Beginning | Increase/decrease | Ending | Ending |
| balance(carryingvalue) | Additionalinvestment | Reducedinvestment | Withdrawalofdepreciationreserve | Other | balance(carryingvalue) | balanceofdepreciationreserve | |
| 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. | 0.00 | 0.00 | 7,000,000.00 | ||||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||||
| JiangsuChangchaiMachineryCo.,Ltd. | 140,000,000.00 | 160，000，000.00 | 300,000,000.00 | ||||
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 |
| Total | 375,752,730.03 | 160,000,000.00 | 535,752,730.03 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| 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 | 1,391,941,677.73 | 1,195,911,988.65 | 1,066,808,215.93 | 914,519,611.82 |
| Otheroperations | 18,507,068.46 | 12,852,045.04 | 14,661,587.19 | 8,902,410.95 |
| Total | 1,410,448,746.19 | 1,208,764,033.69 | 1,081,469,803.12 | 923,422,022.77 |
Informationrelatedtoperformanceobligations:performingaccordingtothecontractofferInformationrelatedtotransactionvalueassignedtoresidualperformanceobligations:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0attheperiod-end.
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 7,394,400.00 | 4,865,000.00 |
| Incomefromtransferringtoaccommodationbusiness | 797,324.76 | 118,988.73 |
| Total | 8,191,724.76 | 4,983,988.73 |
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets | -751,441.20 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 406,454.70 |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentinotherdebtobligations,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 122,886,868.11 | IncreaseinthefairvalueoftheequityofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.heldbytheCompany’swholly-ownedsubsidiaryHoushengInvestmentandtheequityofJiangsuHosunNewEnergyTechnologyCo.,Ltd.heldbytheCompanydurinttheReportingPeriod |
| Othernon-operatingincomeandexpensesotherthantheabove | 516,875.87 | |
| Incometaxrebate | 6,307,493.08 | |
| Less:Incometaxeffects | 27,333,319.22 | |
| Non-controllinginterestseffects | 4,280.32 | |
| Total | 102,028,651.02 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 5.51% | 0.2301 | 0.2301 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 1.19% | 0.0498 | 0.0498 |
TheBoardofDirectorsChangchaiCompany,Limited
18August2021