Stock Code: 000570, 200570 Stock Name: Changchai, Changchai-B Announcement No. 2021-067
CHANGCHAI COMPANY, LIMITEDTHIRD QUARTERLY REPORT 2021
Changchai Company, Limited (hereinafter referred to as the “Company”) and all the members ofthe Company’s Board of Directors hereby guarantee that the contents of this Report are true,accurate and complete and free of any misrepresentations, misleading statements or materialomissions.Important Notes:
1. The Board of Directors, the Supervisory Committee as well as the directors, supervisors and seniormanagement of the Company hereby guarantee that the contents of this Report are true, accurate and complete andfree of any misrepresentations, misleading statements or material omissions, and collectively and individuallyaccept legal responsibility for such contents.
2. The Company’s legal representative, General Manager, and head of the financial department (equivalent tofinancial manager) hereby guarantee that the financial statements carried in this Report are true, accurate andcomplete.
3. Indicate whether the financial statements in this Report have been audited by an independent auditor.
□Yes √ No
4. Matters with modified audit opinions given by the auditor
□ Applicable √ Not applicable
I Key Financial Information(I) Key Accounting Data and Financial IndicatorsIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Q3 2021 | YoY change (%) | Q1-Q3 2021 | YoY change (%) | |
| Operating revenue (RMB) | 484,183,670.58 | -17.15% | 1,981,354,126.38 | 13.10% |
| Net profit attributable to the listed company’s shareholders (RMB) | -23,478,352.18 | —— | 105,710,713.42 | 171.37% |
| Net profit attributable to the listed company’s shareholders before | -9,073,885.20 | —— | 18,086,529.38 | -37.25% |
| exceptional items (RMB) | ||||
| Net cash generated from/used in operating activities (RMB) | —— | —— | -316,185,740.11 | —— |
| Basic earnings per share (RMB/share) | -0.0333 | —— | 0.1734 | 149.86% |
| Diluted earnings per share (RMB/share) | -0.0333 | —— | 0.1734 | 149.86% |
| Weighted average return on equity (%) | -0.75% | -1.29% | 4.54% | 2.68% |
| 30 September 2021 | 31 December 2020 | Change (%) | ||
| Total assets (RMB) | 4,862,324,921.69 | 3,952,954,464.45 | 23.00% | |
| Equity attributable to the listed company’s shareholders (RMB) | 3,122,661,074.22 | 2,273,349,347.02 | 37.36% | |
Total share capital up to the former trading date before the disclosure:
| Total share capital up to the former trading date before the disclosure (share) | 705,692,507 |
Fully diluted EPS calculated by the newest share capital:
| Dividend on preferred shares paid (RMB) | 0.00 |
| Interest on perpetual bonds paid (RMB) | 0.00 |
| Fully diluted EPS calculated by the newest share capital (RMB/share) | 0.1498 |
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Q3 2021 | Q1-Q3 2021 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 757,900.36 | 6,459.16 | |
| Government grants through profit or loss (exclusive of government grants continuously given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s policies and standards) | 360,000.00 | 766,454.70 | |
| Gain or loss on fair-value changes on held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the | -20,805,528.66 | 102,081,339.45 | For Q1-Q3 2021, the fair value of stocks in Jiangsu Liance Electromechanical Technology Co., Ltd. and Kailong High Technology Co., Ltd. held by the Company’s |
| effective portion of hedges that arise in the Company’s ordinary course of business) | wholly-owned subsidiary Changzhou Horizon Investment Co., Ltd. and equity in Jiangsu Horizon New Energy Technology Co., Ltd. held by the Company increased. For Q3, gain or loss on fair value changes decreased due to the decline in stock price. | ||
| Non-operating income and expense other than the above | 270,234.72 | 787,110.59 | |
| Income tax refund | 0.00 | 6,307,493.08 | |
| Less: Income tax effects | -5,013,436.60 | 22,319,882.62 | |
| Non-controlling interests effects (net of tax) | 510.00 | 4,790.32 | |
| Total | -14,404,466.98 | 87,624,184.04 | -- |
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
1. Consolidated Balance Sheet Items
| Item | 30 September 2021 (RMB) | 31 December 2020 (RMB) | Change (%) | Explanation of why |
| Held-for-trading financial assets | 321,347,440.00 | 11,500,272.00 | 2694.26% | Investments in wealth management instruments with idle funds out of the amount raised in a private placement |
| Notes receivable | 346,652,281.02 | 600,140,938.05 | -42.24% | Discounting and collection upon maturity of bank acceptance notes held by the Company |
| Accounts receivable | 1,033,370,187.93 | 397,154,016.49 | 160.19% | The Company properly allowed customers’ buying on credit for more markets and multi-cylinder diesel engine customers are mainly supporting companies of main engine, which are usually given longer payment days. |
| Other receivables | 4,002,431.93 | 6,212,062.80 | -35.57% | Decrease in imprest cash, security deposits and other receivables, as well as provisional payments |
| Other non-current financial assets | 234,801,290.76 | 98,732,938.63 | 137.81% | Increase in gains on changes in the fair value of shares held by the Company’s wholly-owned subsidiary Changzhou Horizon Investment Co., Ltd. in Liance Technology, Kailong High Tech, etc., as well as of equity interests held by the Company in Jiangsu Horizon New Energy Technology Co., Ltd. |
| Construction in progress | 117,018,095.85 | 66,502,432.41 | 75.96% | Wholly-owned subsidiary Changchai Machinery being under construction |
| Other non-current assets | 63,853,284.81 | 19,971,006.56 | 219.73% | Increase in prepayments of Changchai Machinery for construction and engineering services |
| Short-term borrowings | 12,000,000.00 | 22,000,000.00 | -45.45% | Repayment of some short-term borrowings by the Company and its subsidiary |
| Employee benefits payable | 14,007,846.80 | 50,127,161.47 | -72.06% | Salaries and bonuses accrued last year were paid in the Reporting Period |
| Deferred income tax liabilities | 124,661,259.24 | 80,671,598.82 | 54.53% | Increase in the fair value of financial assets |
| Capital reserves | 640,676,218.40 | 164,328,665.43 | 289.87% | Inclusion of share premium upon the completion of a private placement |
2. Consolidated Income Statement Items for Q1~Q3
| Item | Q1~Q3 2021 (RMB) | Q1~Q3 2020 (RMB) | Change (%) | Explanation of why |
| Finance costs | 823,688.31 | 7,051,835.86 | -88.32% | Exchange gains and losses resulted from exchange rate fluctuations and increase in interest income |
| Other income | 766,454.70 | 5,695,097.89 | -86.54% | Decrease in government grants received by the Company |
| Return on investment | 8,663,940.64 | 5,503,903.85 | 57.41% | Increase in dividends received by the Company from the Bank of Jiangsu |
| Income tax expense | 23,705,272.54 | 5,108,476.05 | 364.04% | Increase in gains on changes in fair value |
| Credit impairment losses | -13,804,149.22 | -7,335,779.05 | —— | Allowances for doubtful accounts receivable established based on aging |
| Asset impairment losses | -7,356,415.78 | -17,398,507.67 | —— | Decrease in losses on the impairment of assets such as inventories |
| Net profit attributable to shareholders of the Company as the parent | 105,710,713.42 | 38,953,778.68 | 171.37% | Increase in sales revenue, as well as increase in gains on changes in the fair value of shares held by the Company’s wholly-owned subsidiary Changzhou Horizon Investment Co., Ltd. in Liance Technology, Kailong High Tech, etc., as well as of equity interests held by the Company in Jiangsu Horizon New Energy Technology Co., Ltd. |
3. Consolidated Cash Flow Statement Items for Q1~Q3
| Item | Q1~Q3 2021 | Q1~Q3 2020 | Change (%) | Explanation of why |
| (RMB) | (RMB) | |||
| Net cash generated from/used in operating activities | -316,185,740.11 | 17,685,800.21 | —— | The Company properly allowed customers’ buying on credit for more markets |
| Net cash generated from/used in investing activities | -427,869,678.24 | -104,621,999.67 | —— | Large investments in construction in progress of Changchai Machinery, and investments of the Company and its subsidiaries in wealth management instruments with idle funds |
| Net cash generated from/used in financing activities | 612,388,654.75 | -2,280,722.28 | —— | Receipt of funds raised in a private placement |
II Shareholder Information(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as wellas Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 51,043 | Number of preference shareholders with resumed voting rights (if any) | 0 | ||||
| Top 10 shareholders | |||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge, marked or frozen | ||
| Status | Shares | ||||||
| Changzhou Investment Group Co., Ltd. | State-owned corporation | 32.26% | 227,663,417 | 56,818,181 | |||
| Nuode Fund- Huazhang Tiandi Media Investment Co., Ltd.-Nuode Fund Pujiang No.64 Single Asset Management Plan | Other | 1.61% | 11,363,636 | 11,363,636 | |||
| China National Gold Group Asset Management Co., Ltd. | State-owned corporation | 1.51% | 10,681,818 | 10,681,818 | |||
| Chen Beiwen | Domestic individual | 1.03% | 7,272,727 | 7,272,727 | |||
| Enjoy(Ningbo)Ass | Other | 0.97% | 6,818,181 | 6,818,181 | |||
| et Management L.P.-Enjoy Yingshanhong No.9 Private Securities Investment Fund | ||||||
| Changzhou Transportation Construction Investment Development Co., Ltd. | State-owned corporation | 0.67% | 4,745,454 | 4,545,454 | ||
| Yao Jianquan | Domestic individual | 0.64% | 4,545,454 | 4,545,454 | ||
| Sun Meichun | Domestic individual | 0.64% | 4,545,454 | 4,545,454 | ||
| Jiangxi Jintou Industrial Development Co., Ltd. | Domestic non-state-owned corporation | 0.64% | 4,545,454 | 4,545,454 | ||
| Minmetals Securities Co., Ltd. | Domestic non-state-owned corporation | 0.64% | 4,545,454 | 4,545,454 | ||
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted ordinary shares held | Shares by class | ||||
| Class | Shares | |||||
| Chen Jian | 3,492,700 | RMB-denominated ordinary share | 3,492,700 | |||
| KGI ASIA LIMITED | 3,101,695 | Domestically listed foreign share | 3,101,695 | |||
| Li Suinan | 1,548,100 | Domestically listed foreign share | 1,548,100 | |||
| Huang Guoliang | 1,528,891 | Domestically listed foreign share | 1,528,891 | |||
| Wang Zefeng | 1,386,747 | RMB-denominated ordinary share | 1,386,747 | |||
| Lu Zhang | 1,337,012 | Domestically listed foreign share | 1,337,012 | |||
| Tao Xiaofang | 1,240,000 | RMB-denominate | 1,240,000 | |||
| d ordinary share | |||
| Xue Hong | 1,240,000 | Domestically listed foreign share | 1,240,000 |
| Chen Xiaojing | 1,195,800 | RMB-denominated ordinary share | 1,195,800 |
| Zhang Baoshan | 1,150,000 | RMB-denominated ordinary share | 1,150,000 |
| Related or acting-in-concert parties among the shareholders above | It is unknown whether there is among the top 10 public shareholders and the top 10 unrestricted public shareholders any related parties or acting-in-concert parties as defined in the Administrative Measures for Information Regarding Shareholding Alteration. | ||
| Top 10 shareholders engaged in securities margin trading (if any) | Chen Jian, Wang Zefeng and Chen Xiaojing respectively held 1,966,800, 1,386,747 and 1,194,000 shares in the Company through their credit accounts. | ||
III Other Significant Events
√ Applicable □ Not applicable
1. Non-public offering of shares
On 9 April 2020, the 24th meeting of the 8th board of directors of the Company discussed and approved theNon-public Offering Plan of the Company for 2020. The Company intended to make non-public issuance ofdomestic common shares listed in RMB to specific objects, and this matter was approved by the controllingshareholder Changzhou Investment Group Co., Ltd. and was reviewed and adopted in the meeting of shareholdersof 2019. On 18 September 2020, the temporary meeting of the board of directors of the Company discussed andapproved the relevant revision matters concerning non-public issuance of shares, the Company supplemented andimproved the foresaid plan according to the relevant revision matters, and prepared the Non-public Offering Planof the Company for 2020 (Revision Version), which was discussed and approved in the second temporary meetingof shareholders in 2020.On 17 December 2020, the Company received the Reply concerning the Approval of the Non-public Offering ofShares of Changchai Company, Limited (ZJXK [2020] No. 3374) from the China Securities RegulatoryCommission, which approved the non-public offering of up to 168,412,297 shares of the Company. TheCompany's offered 144,318,181 RMB ordinary shares (A shares) in a non-public manner. The issuing price wasRMB4.40 per share, total amount raised was RMB634,999,936.40, and the net amount raised wasRMB622,499,996.40. The new shares issued in a non-public manner were listed on the Shenzhen Stock Exchangeon 5 July 2021. For details, please refer to the Report on Non-public Offering by Changchai Company, Limitedand Listing Bulletin disclosed by the Company on www.cninfo.com.cn on 1 July 2021. The Company hascompleted the capital registration, industrial and commercial registration of changes, and revision of articles ofassociation.
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company, Limited
30 September 2021
Unit: RMB
| Item | 30 September 2021 | 31 December 2020 |
| Current assets: | ||
| Monetary assets | 672,734,056.90 | 760,728,222.85 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | 321,347,440.00 | 11,500,272.00 |
| Derivative financial assets | ||
| Notes receivable | 346,652,281.02 | 600,140,938.05 |
| Accounts receivable | 1,033,370,187.93 | 397,154,016.49 |
| Receivables financing | ||
| Prepayments | 10,885,260.69 | 9,357,840.75 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 4,002,431.93 | 6,212,062.80 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 589,150,932.87 | 606,680,340.55 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 19,625,671.20 | 27,299,362.72 |
| Total current assets | 2,997,768,262.54 | 2,419,073,056.21 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | ||
| Investments in other equity instruments | 829,767,691.82 | 685,137,950.87 |
| Other non-current financial assets | 234,801,290.76 | 98,732,938.63 |
| Investment property | 44,583,070.43 | 46,239,326.03 |
| Fixed assets | 415,214,477.96 | 454,181,555.68 |
| Construction in progress | 117,018,095.85 | 66,502,432.41 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 155,021,871.48 | 158,870,631.71 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 65,002.89 | 13,693.20 |
| Deferred income tax assets | 4,231,873.15 | 4,231,873.15 |
| Other non-current assets | 63,853,284.81 | 19,971,006.56 |
| Total non-current assets | 1,864,556,659.15 | 1,533,881,408.24 |
| Total assets | 4,862,324,921.69 | 3,952,954,464.45 |
| Current liabilities: | ||
| Short-term borrowings | 12,000,000.00 | 22,000,000.00 |
| Borrowings from the central bank | ||
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 656,796,159.50 | 595,346,000.00 |
| Accounts payable | 587,456,913.85 | 612,757,392.46 |
| Advances from customers | 661,612.17 | |
| Contract liabilities | 37,772,926.63 | 35,944,517.15 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and deposits from other banks and financial institutions | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 14,007,846.80 | 50,127,161.47 |
| Taxes and levies payable | 4,044,397.46 | 2,869,485.41 |
| Other payables | 235,066,490.82 | 197,545,076.08 |
| Including: Interest payable | ||
| Dividends payable | 3,891,433.83 | 3,891,433.83 |
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | 6,106,039.32 | 5,233,947.12 |
| Total current liabilities | 1,553,250,774.38 | 1,522,485,191.86 |
| Non-current liabilities: |
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | 42,179,737.60 | 56,949,737.60 |
| Deferred income tax liabilities | 124,661,259.24 | 80,671,598.82 |
| Other non-current liabilities | ||
| Total non-current liabilities | 166,840,996.84 | 137,621,336.42 |
| Total liabilities | 1,720,091,771.22 | 1,660,106,528.28 |
| Owners’ equity: | ||
| Share capital | 705,692,507.00 | 561,374,326.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 640,676,218.40 | 164,328,665.43 |
| Less: Treasury stock | ||
| Other comprehensive income | 548,418,038.05 | 425,482,758.24 |
| Specific reserve | 18,812,986.55 | 18,812,986.55 |
| Surplus reserves | 325,451,531.14 | 325,451,531.14 |
| General reserve | ||
| Retained earnings | 883,609,793.08 | 777,899,079.66 |
| Total equity attributable to owners of the Company as the parent | 3,122,661,074.22 | 2,273,349,347.02 |
| Non-controlling interests | 19,572,076.25 | 19,498,589.15 |
| Total owners’ equity | 3,142,233,150.47 | 2,292,847,936.17 |
| Total liabilities and owners’ equity | 4,862,324,921.69 | 3,952,954,464.45 |
Legal representative: Shi Xinkun General Manager: Zhang XinHead of the accounting department: Jiang He
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2021 | Q1~Q3 2020 |
| 1. Revenues | 1,981,354,126.38 | 1,751,860,265.23 |
| Including: Operating revenue | 1,981,354,126.38 | 1,751,860,265.23 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 1,942,537,176.98 | 1,694,490,647.57 |
| Including: Cost of sales | 1,709,842,352.28 | 1,468,409,717.46 |
| Interest expense | ||
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 9,599,626.55 | 9,673,762.22 |
| Selling expense | 97,211,507.42 | 102,089,329.05 |
| Administrative expense | 69,073,749.70 | 57,818,820.36 |
| R&D expense | 55,986,252.72 | 49,447,182.62 |
| Finance costs | 823,688.31 | 7,051,835.86 |
| Including: Interest expense | 5,806,935.93 | 5,384,379.68 |
| Interest income | 7,246,601.53 | 4,563,438.25 |
| Add: Other income | 766,454.70 | 5,695,097.89 |
| Return on investment (“-” for loss) | 8,663,940.64 | 5,503,903.85 |
| Including: Share of profit or loss of joint ventures and associates | ||
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 101,609,123.57 | |
| Credit impairment loss (“-” for loss) | -13,804,149.22 | -7,335,779.05 |
| Asset impairment loss (“-” for loss) | -7,356,415.78 | -17,398,507.67 |
| Asset disposal income (“-” for loss) | 6,459.16 | 181,780.55 |
| 3. Operating profit (“-” for loss) | 128,702,362.47 | 44,016,113.23 |
| Add: Non-operating income | 1,268,521.68 | 628,068.52 |
| Less: Non-operating expense | 481,411.09 | 424,278.65 |
| 4. Gross profit (“-” for loss) | 129,489,473.06 | 44,219,903.10 |
| Less: Income tax expense | 23,705,272.54 | 5,108,476.05 |
| 5. Net profit (“-” for net loss) | 105,784,200.52 | 39,111,427.05 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 105,784,200.52 | 39,111,427.05 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 105,710,713.42 | 38,953,778.68 |
| 5.2.1 Net profit attributable to non-controlling interests | 73,487.10 | 157,648.37 |
| 6. Other comprehensive income, net of tax | 122,935,279.81 | 22,732,693.67 |
| Attributable to owners of the Company as the parent | 122,935,279.81 | 22,732,693.67 |
| 6.1 Items that will not be reclassified to profit or loss | 122,935,279.81 | 22,732,693.67 |
| 6.1.1 Changes caused by remeasurements on defined benefit schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | 122,935,279.81 | 22,732,693.67 |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | ||
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 6.2.2 Changes in the fair value of other debt investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 6.2.7 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 228,719,480.33 | 61,844,120.72 |
| Attributable to owners of the Company as the parent | 228,645,993.23 | 61,686,472.35 |
| Attributable to non-controlling interests | 73,487.10 | 157,648.37 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1734 | 0.0694 |
| 8.2 Diluted earnings per share | 0.1734 | 0.0694 |
Legal representative: Shi Xinkun General Manager: Zhang XinHead of the accounting department: Jiang He
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2021 | Q1~Q3 2020 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,631,589,730.09 | 1,611,643,141.67 |
| Net increase in customer deposits and deposits from other banks and financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, fees and commissions received | ||
| Net increase in loans from other banks and financial institutions | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax and levy rebates | 33,014,359.71 | 21,886,374.72 |
| Cash generated from other operating activities | 10,218,300.82 | 11,604,073.90 |
| Subtotal of cash generated from operating activities | 1,674,822,390.62 | 1,645,133,590.29 |
| Payments for commodities and services | 1,610,525,132.37 | 1,284,823,979.81 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and other banks and financial institutions | ||
| Payments for claims on original insurance contracts | ||
| Net increase in loans to other banks and financial institutions | ||
| Interest, fees and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 253,758,615.93 | 220,889,699.06 |
| Taxes and levies paid | 31,954,409.88 | 32,562,156.11 |
| Cash used in other operating activities | 94,769,972.55 | 89,171,955.10 |
| Subtotal of cash used in operating activities | 1,991,008,130.73 | 1,627,447,790.08 |
| Net cash generated from/used in operating activities | -316,185,740.11 | 17,685,800.21 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 28,222,100.00 | 29,773,443.16 |
| Return on investment | 8,762,954.14 | 5,503,903.85 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 815,419.17 | 108,370.88 |
| Net proceeds from the disposal of subsidiaries and other |
| business units | ||
| Cash generated from other investing activities | 97,150.00 | |
| Subtotal of cash generated from investing activities | 37,800,473.31 | 35,482,867.89 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 120,898,051.55 | 114,151,611.40 |
| Payments for investments | 344,772,100.00 | 25,022,956.16 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 930,300.00 | |
| Subtotal of cash used in investing activities | 465,670,151.55 | 140,104,867.56 |
| Net cash generated from/used in investing activities | -427,869,678.24 | -104,621,999.67 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 634,999,996.40 | |
| Including: Capital contributions by non-controlling interests to subsidiaries | ||
| Borrowings received | 7,000,000.00 | 20,000,000.00 |
| Cash generated from other financing activities | 1,391,000.00 | |
| Subtotal of cash generated from financing activities | 643,390,996.40 | 20,000,000.00 |
| Repayment of borrowings | 17,000,000.00 | 20,000,000.00 |
| Interest and dividends paid | 1,307,343.28 | 2,280,722.28 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | 12,694,998.37 | |
| Subtotal of cash used in financing activities | 31,002,341.65 | 22,280,722.28 |
| Net cash generated from/used in financing activities | 612,388,654.75 | -2,280,722.28 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | -401,452.02 | |
| 5. Net increase in cash and cash equivalents | -131,666,763.60 | -89,618,373.76 |
| Add: Cash and cash equivalents, beginning of the period | 629,939,540.50 | 545,959,998.20 |
| 6. Cash and cash equivalents, end of the period | 498,272,776.90 | 456,341,624.44 |
Legal representative: Shi Xinkun General Manager: Zhang XinHead of the accounting department: Jiang He
(II) Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of the NewStandards Governing Leases from 2021
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of the NewStandards Governing Leases from 2021
□ Applicable √ Not applicable
(III) Independent Auditor’s ReportIndicate by tick mark whether the financial statements above have been audited by an independent auditor.
□ Yes √ No
These financial statements have not been audited by such an auditor.
The Board of DirectorsChangchai Company, Limited
29 October 2021