Changchai Company, Limited First Quarter Report 2018
Changchai Company, Limited
The Report for the First Quarter of 2018
April 27, 2018
1
Changchai Company, Limited First Quarter Report 2018
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of Changchai Company, Limited (inclusive of its consolidated
subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent Company”, except where the
context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report, and shall be jointly and severally liable for any misrepresentations,
misleading statements or material omissions in this Report.
All the Company’s Directors have attended the Board meeting for the review of this Report.
Shi Xinkun, the Company’s legal representative, Zhang Xin, the Company’s General Manager,
and Jiang He, head of the Company’s financial department (equivalent to financial manager) hereby
guarantee that the Financial Statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies
or misunderstandings between the two versions, the Chinese version shall prevail.
2
Changchai Company, Limited First Quarter Report 2018
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
January-March 2018 January-March 2017 Change
Sales revenue (RMB) 593,008,785.46 723,164,530.66 -18.00%
Net income attributable to shareholders of the
11,343,577.44 34,991,536.70 -67.58%
listed company (RMB)
Net income attributable to shareholders of the
listed company before nonrecurring gains and 11,141,982.06 14,440,682.83 -22.84%
losses (RMB)
Net cash flows from operating activities (RMB) -73,259,277.76 -52,599,067.83 -
Basic earnings per share (RMB/share) 0.02 0.06 -66.67%
Diluted earnings per share (RMB/share) 0.02 0.06 -66.67%
Weighted average return on equity (%) 0.51% 1.48% -0.97%
March 31, 2018 December 31, 2017 Change
Total assets (RMB) 3,703,879,135.15 3,722,905,285.05 -0.51%
Equity attributable to shareholders of the listed
2,221,644,110.30 2,246,896,857.86 -1.12%
company (RMB)
Nonrecurring gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2018 Note
Gains and losses on disposal of non-current assets (inclusive of offset
122,640.78
allowance for asset impairments)
Gains and losses on changes in fair value of trading financial assets and
liabilities & investment income from disposal of trading financial assets and
64,096.56
liabilities and available-for-sale financial assets (exclusive of effective
portion of hedges that arise in the Company’s ordinary course of business)
Other gains and losses that meet definition of nonrecurring gain/loss 27,217.56
Less: Income tax effects 12,359.52
Total 201,595.38 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Nonrecurring Gains and Losses, or reclassifies any nonrecurring gain/loss item listed in the said
explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
3
Changchai Company, Limited First Quarter Report 2018
No such cases for the Reporting Period.
II Total Number of Shareholders and Top 10 Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Common shareholders at Preferred shareholders with resumed voting
50,915
period-end rights at period-end (if any)
Top 10 shareholders
Shareholding Restri Pledged or
Name of shareholder Nature of shareholder percentage at Shares cted frozen shares
period-end (%) shares Status Shares
State-owned Assets
Supervision and
State-owned juridical
Administration Commission 30.43% 170,845,236
person
of Changzhou Municipal
People’s Government
Foreign juridical
KGI Asia Limited 0.57% 3,189,845 0
person
Domestic natural
Zhang Ruirong 0.32% 1,776,800 0
person
Domestic natural
Wan Peizhong 0.29% 1,645,800 0
person
Domestic natural
Huang Guoliang 0.27% 1,528,891 0
person
Domestic natural
Hu Wenyong 0.27% 1,499,766 0
person
Vanguard Total International Foreign juridical
0.25% 1,382,093 0
Stock Index Fund person
Domestic natural
Liang Nianyou 0.24% 1,339,452 0
person
Domestic natural
Li Suinan 0.24% 1,338,700 0
person
Domestic natural
Xiong Shunbao 0.23% 1,273,051 0
person
Top 10 non-restricted shareholders
Non-restricted shares held at Type of shares
Name of shareholder
period-end Type Shares
State-owned Assets Supervision
and Administration Commission of
170,845,236 RMB common stock 170,845,236
Changzhou Municipal People’s
Government
4
Changchai Company, Limited First Quarter Report 2018
Domestically listed stock
KGI Asia Limited 3,189,845 3,189,845
for foreign investors
Zhang Ruirong 1,776,800 RMB common stock 1,776,800
Wan Peizhong 1,645,800 RMB common stock 1,645,800
Domestically listed stock
Huang Guoliang 1,528,891 1,528,891
for foreign investors
Domestically listed stock
Hu Wenyong 1,499,766 1,499,766
for foreign investors
Vanguard Total International Stock Domestically listed stock
1,382,093 1,382,093
Index Fund for foreign investors
Liang Nianyou 1,339,452 RMB common stock 1,339,452
Domestically listed stock
Li Suinan 1,338,700 1,338,700
for foreign investors
Xiong Shunbao 1,273,051 RMB common stock 1,273,051
It is unknown whether there is among the top 10 tradable shareholders and
Related or acting-in-concert parties the top 10 non-restrictedly tradable shareholders any related parties or
among shareholders above acting-in-concert parties as defined in the Administrative Measures for
Information Regarding Shareholding Alteration.
The shareholder Xiong Shunbao holds 1,273,051 shares in the Company
Shareholders conducting securities
through an account of collateral securities for margin trading in Guolian
margin trading (if any)
Securities Co., Ltd, accounting for 0.23%.
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
5
Changchai Company, Limited First Quarter Report 2018
Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
√ Applicable □ Not applicable
1. Accounts receivable rose by RMB280,595,318.57, or 71.58%, as of March 31, 2018 compared to
December 31, 2017, primarily because the Company properly allowed customers’ buying on credit for more
markets in Q1 2018 and multi-cylinder diesel engine customers are usually given longer payment days.
2. Prepayments rose by RMB8,647,269.62, or 104.87%, as of March 31, 2018 compared to December 31,
2017, primarily because the Company properly increased its prepayments to suppliers to ensure the supply of raw
materials and components.
3.Other receivables were increased by RMB18,512,464.39, or 319.46%, mainly due to the temporary
borrowing of subsidiary, Changzhou Horizon Investment Company, to the Xuzhou Hua Dong Foundry.
4. Finance costs went down by RMB4,583,391.46, during Q1 2018 compared to Q1 2017, primarily driven
by the changes in net foreign exchange gains and losses resulted from exchange rate fluctuations in Q1 2018.
5. Non-operating income decreased by RMB19,969,994.21,or 92.26%, compared with the same period last
year, mainly due to the fact that there was no discount for the equity purchase of subsidiary companies compared
with the same period last year.
6.Non-operating expense went down by RMB2,123,588.54, or 58.21%, during Q1 2018 compared to Q1
2017, primarily driven by a year-over-year decrease in the loss on disposal of defective inventories.
7. Net income went down by RMB23,727,160.85, or 67.28%, during Q1 2018 compared to Q1 2017,
primarily because an equity acquisition was concluded at a price lower than the appraised price, generating a
non-recurring gain, in Q1 2017 and costs increased in Q1 2018 due to weak demand for diesel engines and stricter
emission regulations.
8. Net cash flows from operating activities decreased by RMB20,660,209.93 from the same period of last
year mainly because of the increased accounts receivable.
9. Net cash flows from investing activities went down by RMB29,598,627.43, during Q1 2018 compared to
Q1 2017, primarily because Q1 2018 saw a decrease in fixed-assets construction.
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
6
Changchai Company, Limited First Quarter Report 2018
IV Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018,
as well as explanation of why:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
The Company’s cooperative purpose with foreign
January 3, 2018 Other Individual
companies
Cooperation with scientific research organizations and
January 18, 2018 Other Individual
institutions of higher education
January 29, 2018 Other Individual Disclosure time of the Company’s operating result forecast
March 13, 2018 Other Individual Mixed ownership reform of state-owned enterprises
March 13, 2018 Other Individual Development in Southeast Asian market
March 31, 2018 Other Individual Cooperation with Jiangsu World
March 31, 2018 Other Individual Management of the Company’s market value
March 31, 2018 Other Individual Situation of the Company’s reform
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Money by Its Controlling Shareholder or Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
7
Changchai Company, Limited First Quarter Report 2018
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Changchai Company, Limited
March 31, 2018
Unit: RMB
Item March 31, 2018 December 31, 2017
Current assets:
Monetary assets 366,513,921.78 430,305,367.71
Settlement reserve
Interbank loans granted
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 621,401,634.94 716,404,345.57
Accounts receivable 672,606,272.12 392,010,953.55
Prepayments 36,428,277.39 17,781,007.77
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Interest receivable
Dividends receivable
Other receivables 24,307,435.61 5,794,971.22
Financial assets purchased under resale agreements
Inventories 418,465,150.90 508,246,807.48
Assets classified as held for sale
Current portion of non-current assets
Other current assets 33,187,794.91 42,540,184.05
Total current assets 2,172,910,487.65 2,113,083,637.35
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 750,468,139.04 793,522,639.04
Held-to-maturity investments
Long-term receivables
Long-term equity investments
Investment property 52,312,263.23 52,864,348.43
Property, plant and equipment 544,065,907.91 560,049,970.50
Construction in progress 81,018,450.18 94,581,989.06
8
Changchai Company, Limited First Quarter Report 2018
Engineering materials
Proceeds from disposal of property, plant and equipment
Productive living assets
Oil and gas assets
Intangible assets 102,096,933.33 107,795,746.86
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 1,006,953.81 1,006,953.81
Other non-current assets
Total non-current assets 1,530,968,647.50 1,609,821,647.70
Total assets 3,703,879,135.15 3,722,905,285.05
Current liabilities:
Short-term borrowings 26,700,000.00 24,900,000.00
Borrowings from central bank
Customer deposits and deposits from banks and other financial
institutions
Interbank loans obtained
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable 444,178,000.00 347,070,500.00
Accounts payable 484,086,878.29 616,228,500.18
Advances from customers 46,546,444.25 40,153,984.91
Financial assets sold under repurchase agreements
Handling charges and commissions payable
Payroll payable 44,310,431.42 51,247,112.66
Taxes payable 4,160,118.37 4,017,920.78
Interest payable
Dividends payable 3,891,433.83 3,891,433.83
Other payables 237,449,902.13 192,094,243.08
Reinsurance payables
Insurance contract reserve
Payables for acting trading of securities
Payables for underwriting of securities
Liabilities directly associated with assets classified as held for
sale
Current portion of non-current liabilities
Other current liabilities 2,798,865.66 2,028,937.59
Total current liabilities 1,294,122,073.95 1,281,632,633.03
Non-current liabilities:
Long-term borrowings 21,500,000.00 21,500,000.00
Bonds payable
Including: Preferred shares
9
Changchai Company, Limited First Quarter Report 2018
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income 60,992,858.46 60,992,858.46
Deferred income tax liabilities 85,951,604.39 92,409,779.39
Other non-current liabilities
Total non-current liabilities 168,444,462.85 174,902,637.85
Total liabilities 1,462,566,536.80 1,456,535,270.88
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 164,328,665.43 164,328,665.43
Less: Treasury shares
Other comprehensive income 478,472,225.00 515,068,550.00
Specific reserve 13,289,059.21 13,289,059.21
Surplus reserves 313,705,210.16 313,705,210.16
General reserve
Retained earnings 690,474,624.50 679,131,047.06
Total equity attributable to owners of Parent Company 2,221,644,110.30 2,246,896,857.86
Non-controlling interests 19,668,488.05 19,473,156.31
Total owners’ equity 2,241,312,598.35 2,266,370,014.17
Total liabilities and owners’ equity 3,703,879,135.15 3,722,905,285.05
Legal representative: Shi Xinkun The Company’s general manager: Zhang Xin
Head of the Company financial department: Jiang He
10
Changchai Company, Limited First Quarter Report 2018
2. Parent Company Balance Sheet
Unit: RMB
Item March 31, 2018 December 31, 2017
Current assets:
Monetary assets 323,315,001.72 366,907,287.64
Financial assets at fair value through profit or loss
Derivative financial assets
Notes receivable 618,351,634.94 711,474,345.57
Accounts receivable 595,530,316.22 319,887,051.70
Prepayments 18,485,696.31 9,815,561.98
Interest receivable
Dividends receivable
Other receivables 11,598,810.17 11,798,211.40
Inventories 290,105,961.33 376,814,388.82
Assets classified as held for sale
Current portion of non-current assets
Other current assets 9,616,652.35 20,692,057.15
Total current assets 1,867,004,073.04 1,817,388,904.26
Non-current assets:
Available-for-sale financial assets 742,783,000.00 785,837,500.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 231,752,730.03 231,752,730.03
Investment property 52,312,263.23 52,864,348.43
Property, plant and equipment 440,604,265.55 453,155,359.47
Construction in progress 80,677,650.18 93,681,793.26
Engineering materials
Proceeds from disposal of property, plant and equipment
Productive living assets
Oil and gas assets
Intangible assets 74,523,191.02 75,623,219.49
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 934,554.06 934,554.06
Other non-current assets
Total non-current assets 1,623,587,654.07 1,693,849,504.74
Total assets 3,490,591,727.11 3,511,238,409.00
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
11
Changchai Company, Limited First Quarter Report 2018
Notes payable 421,138,000.00 323,030,500.00
Accounts payable 431,385,259.65 560,214,489.22
Advances from customers 45,026,626.59 38,382,261.14
Payroll payable 39,860,797.44 41,401,495.39
Taxes payable 1,021,050.66 1,373,036.64
Interest payable
Dividends payable 3,243,179.97 3,243,179.97
Other payables 220,694,284.58 182,738,709.26
Liabilities directly associated with assets classified as held for
sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 1,162,369,198.89 1,150,383,671.62
Non-current liabilities:
Long-term borrowings 19,500,000.00 19,500,000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income 60,992,858.46 60,992,858.46
Deferred income tax liabilities 84,436,275.00 90,894,450.00
Other non-current liabilities
Total non-current liabilities 164,929,133.46 171,387,308.46
Total liabilities 1,327,298,332.35 1,321,770,980.08
Owners’ equity:
Share capital 561,374,326.00 561,374,326.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 183,071,147.70 183,071,147.70
Less: Treasury shares
Other comprehensive income 478,472,225.00 515,068,550.00
Specific reserve 13,289,059.21 13,289,059.21
Surplus reserves 313,705,210.16 313,705,210.16
Retained earnings 613,381,426.69 602,959,135.85
Total owners’ equity 2,163,293,394.76 2,189,467,428.92
Total liabilities and owners’ equity 3,490,591,727.11 3,511,238,409.00
12
Changchai Company, Limited First Quarter Report 2018
3. Consolidated Income Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Operating revenue 593,008,785.46 723,164,530.66
Including: Sales revenue 593,008,785.46 723,164,530.66
Interest revenue
Premium revenue
Handling charge and commission revenue
2. Cost of operating revenue 579,389,265.96 705,529,406.81
Including: Cost of sales 514,583,143.24 638,873,185.41
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 2,841,402.82 2,438,458.01
Selling expense 27,010,594.06 26,191,359.28
Administrative expense 31,414,153.72 39,069,823.45
Finance costs 3,539,972.12 -1,043,419.34
Asset impairment losses
Add: Gain on changes in fair value (“-” for loss)
Investment income (“-” for loss) 64,096.56 2,215,049.22
Including: Share of profit or loss of joint ventures and
associates
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss)
Other income
3. Operating income (“-” for loss) 13,683,616.06 19,850,173.07
Add: Non-operating revenue 1,674,474.55 21,644,468.76
Less: Non-operating expense 1,524,616.21 3,648,204.75
4. Pretax income (“-” for loss) 13,833,474.40 37,846,437.08
Less: Income tax expense 2,294,565.22 2,580,367.05
5. Net income (“-” for net loss) 11,538,909.18 35,266,070.03
5.1 Net income from continuing operations (“-” for net loss) 11,538,909.18 35,266,070.03
5.2 Net income from discontinued operations (“-” for net loss)
Attributable to owners of Parent Company 11,343,577.44 34,991,536.70
Attributable to non-controlling interests 195,331.74 274,533.33
6. Other comprehensive income, net of tax -36,596,325.00 34,093,500.00
Attributable to owners of Parent Company -36,596,325.00 34,093,500.00
6.1 Items that will not be reclassified to profit or loss
13
Changchai Company, Limited First Quarter Report 2018
6.1.1 Changes in net liabilities or assets caused by
re-measurements on defined benefit pension schemes
6.1.2 Share of other comprehensive income of investees
that will not be reclassified to profit or loss under equity method
6.2 Items that may subsequently be reclassified to profit or
-36,596,325.00 34,093,500.00
loss
6.2.1 Share of other comprehensive income of investees
that will be reclassified to profit or loss under equity method
6.2.2 Gains/Losses on changes in fair value of
-36,596,325.00 34,093,500.00
available-for-sale financial assets
6.2.3 Gains/Losses arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Differences arising from translation of foreign
currency-denominated financial statements
6.2.6 Other
Attributable to non-controlling interests
7. Total comprehensive income -25,057,415.82 69,359,570.03
Attributable to owners of Parent Company -25,252,747.56 69,085,036.70
Attributable to non-controlling interests 195,331.74 274,533.33
8. Earnings per share
8.1 Basic earnings per share 0.02 0.06
8.2 Diluted earnings per share 0.02 0.06
Legal representative: Shi Xinkun The Company’s general manager: Zhang Xin
Head of the Company financial department: Jiang He
14
Changchai Company, Limited First Quarter Report 2018
4. Parent Company Income Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Sales revenue 546,106,384.32 671,067,381.57
Less: Cost of sales 478,947,398.52 597,712,030.57
Taxes and surtaxes 2,016,404.51 1,852,624.69
Selling expense 24,722,755.12 23,846,836.58
Administrative expense 26,313,858.28 34,336,123.95
Finance costs 1,660,143.55 -1,346,027.09
Asset impairment losses
Add: Gain on changes in fair value (“-” for loss)
Investment income (“-” for loss)
Including: Share of profit or loss of joint ventures and
associates
Asset disposal income (“-” for loss)
Other income
2. Operating income (“-” for loss) 12,445,824.34 14,665,792.87
Add: Non-operating revenue 1,339,652.51 468,401.99
Less: Non-operating expense 1,523,958.21 3,585,448.64
3. Pretax income (“-” for loss) 12,261,518.64 11,548,746.22
Less: Income tax expense 1,839,227.80 1,824,701.90
4. Net income (“-” for net loss) 10,422,290.84 9,724,044.32
4.1 Net income from continuing operations (“-” for net loss) 10,422,290.84 9,724,044.32
4.2 Net income from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax -36,596,325.00 269,528,625.00
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes in net liabilities or assets caused by
re-measurements on defined benefit pension schemes
5.1.2 Share of other comprehensive income of investees that
will not be reclassified into profit or loss under equity method
5.2 Items that may subsequently be reclassified to profit or loss -36,596,325.00 269,528,625.00
5.2.1 Share of other comprehensive income of investees that
will be reclassified into profit or loss under equity method
5.2.2 Gains/Losses on changes in fair value of
-36,596,325.00 269,528,625.00
available-for-sale financial assets
5.2.3 Gains/Losses arising from reclassification of
held-to-maturity investments to available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Differences arising from translation of foreign
currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income -26,174,034.16 279,252,669.32
15
Changchai Company, Limited First Quarter Report 2018
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
16
Changchai Company, Limited First Quarter Report 2018
5. Consolidated Cash Flow Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Cash generated by or used in operating activities:
Proceeds from sale of commodities and rendering of services 439,612,228.47 559,720,974.26
Net increase in customer deposits and deposits from banks and
other financial institutions
Net increase in loans from 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
Net increase in proceeds from disposal of financial assets at fair
value through profit or loss
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Tax rebates 17,753,037.91 20,849,031.11
Cash generated by other operating activities 3,702,330.49 3,910,470.17
Subtotal of cash generated by operating activities 461,067,596.87 584,480,475.54
Payments for commodities and services 406,939,946.87 499,393,990.54
Net increase in loans and advances to customers
Net increase in deposits in central bank and in interbank loans
granted
Payments for claims on original insurance contracts
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 92,450,068.47 98,279,534.01
Taxes paid 9,951,419.10 13,750,299.06
Cash used in other operating activities 24,985,440.19 25,655,719.76
Subtotal of cash used in operating activities 534,326,874.63 637,079,543.37
Net cash flows from operating activities -73,259,277.76 -52,599,067.83
2. Cash generated by or used in investing activities:
Proceeds from disinvestments 2,000,000.00
Investment income 64,096.56 107,098.26
Net proceeds from disposal of property, plant and equipment,
198,255.47 457,913.44
intangible assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other business units
Cash generated by other investing activities
Subtotal of cash generated by investing activities 2,262,352.03 565,011.70
Payments for acquisition of property, plant and equipment,
9,895,537.64 32,207,669.61
intangible assets and other long-lived assets
17
Changchai Company, Limited First Quarter Report 2018
Payments for investments 4,265,444.20 3,000,000.00
Net increase in pledged loans granted
Net payments for acquisition of subsidiaries and other business
1,854,599.33
units
Cash used in other investing activities 8,000,000.00 13,000,000.00
Subtotal of cash used in investing activities 22,160,981.84 50,062,268.94
Net cash flows from investing activities -19,898,629.81 -49,497,257.24
3. Cash generated by or used in financing activities:
Capital contributions received
Including: Capital contributions by non-controlling interests to
subsidiaries
Increase in borrowings obtained 1,800,000.00
Net proceeds from issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities 1,800,000.00
Repayment of borrowings
Payments for interest and dividends 645,225.08 81,250.00
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities 4,497.87
Subtotal of cash used in financing activities 645,225.08 85,747.87
Net cash flows from financing activities 1,154,774.92 -85,747.87
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -92,003,132.65 -102,182,072.94
Add: Cash and cash equivalents, beginning of the period 325,263,654.43 583,278,129.09
6. Cash and cash equivalents, end of the period 233,260,521.78 481,096,056.15
18
Changchai Company, Limited First Quarter Report 2018
6. Parent Company Cash Flow Statement
Unit: RMB
January-March January-March
Item
2018
1. Cash generated by or used in operating activities:
Proceeds from sale of commodities and rendering of services 383,944,530.99 535,658,165.47
Tax rebates 14,412,296.14 17,491,266.11
Cash generated by other operating activities 2,985,456.36 3,339,265.22
Subtotal of cash generated by operating activities 401,342,283.49 556,488,696.80
Payments for commodities and services 360,203,288.81 491,217,873.52
Cash paid to and for employees 80,778,231.12 86,413,231.91
Taxes paid 6,738,039.59 10,628,148.30
Cash used in other operating activities 20,149,380.94 21,879,334.47
Subtotal of cash used in operating activities 467,868,940.46 610,138,588.20
Net cash flows from operating activities -66,526,656.97 -53,649,891.40
2. Cash generated by or used in investing activities:
Proceeds from disinvestments
Investment income
Net proceeds from disposal of property, plant and equipment,
16,700.00 62,913.44
intangible assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other business units
Cash generated by other investing activities
Subtotal of cash generated by investing activities 16,700.00 62,913.44
Payments for acquisition of property, plant and equipment, intangible
8,205,480.04 28,498,615.58
assets and other long-lived assets
Payments for investments
Net payments for acquisition of subsidiaries and other business units 23,794,779.68
Cash used in other investing activities
Subtotal of cash used in investing activities 8,205,480.04 52,293,395.26
Net cash flows from investing activities -8,188,780.04 -52,230,481.82
3. Cash generated by or used in financing activities:
Capital contributions received
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities
Repayment of borrowings
Payments for interest and dividends 375,425.98
Cash used in other financing activities
Sub-total of cash used in financing activities 375,425.98
Net cash flows from financing activities -375,425.98
4. Effect of foreign exchange rate changes on cash and cash equivalents
19
Changchai Company, Limited First Quarter Report 2018
5. Net increase in cash and cash equivalents -75,090,862.99 -105,880,373.22
Add: Cash and cash equivalents, beginning of the period 272,064,464.71 558,159,090.01
6. Cash and cash equivalents, end of the period 196,973,601.72 452,278,716.79
II Independent Auditor’s Report
Indicate by tick mark whether the Q1 financial statements have been audited by an independent auditor.
□Yes √ No
The Q1 financial statements have not been audited by such an auditor.
20
