CHANGCHAICOMPANY,LIMITED
ANNUALREPORT2018
April2019
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 3
PartIICorporateInformationandKeyFinancialInformation ...... 5
PartIIIBusinessSummary ...... 10
PartIVOperatingPerformanceDiscussionandAnalysis ...... 12
PartVSignificantEvents ...... 27
PartVIShareChangesandShareholderInformation ...... 38
PartVIIPreferredShares ...... 44
PartVIIIDirectors,Supervisors,SeniorManagementandStaff ...... 45
PartIXCorporateGovernance ...... 52
PartXCorporateBonds ...... 58
PartXIFinancialStatements ...... 59
PartXIIDocumentsAvailableforReference ...... 171
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.
ThedirectorMrs.ZhangQiongwasnotpresentattheboardsessionforreviewingthisannualrepoetanditssummaryandthusentrustedtheChairmanoftheBoardMr.ShiXinkuntovoteonbehalfofher.
Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks.
TheCompanyhasdescribedindetailtherisksitmightfacein“PartIVOperatingPerformanceDiscussionandAnalysis”,IX,“4.PossibleRisksinFuture”herein.
TheBoardhasapprovedafinaldividendplanasfollows:basedonthe561,374,326shares,acashdividendofRMB0.25(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.
ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
Definitions
Term
Term | Definition |
The“Company”,“Changchai”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
HoushengInvestment | ChangzhouHoushengInvestmentCo.,Ltd. |
HoushengAgriculturalEquipment | ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. |
ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2018to31December2018 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname
Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
Stockexchangeforstocklisting | ShenzhenStockExchange | ||
CompanynameinChinese | 常柴股份有限公司 | ||
Abbr. | 苏常柴 | ||
CompanynameinEnglish | CHANGCHAICOMPANY,LIMITED | ||
Abbr. | CHANGCHAICO.,LTD. | ||
Legalrepresentative | ShiXinkun | ||
Registeredaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
Zipcode | 213002 | ||
Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
Zipcode | 213002 | ||
Companywebsite | http://www.changchai.com.cn | ||
Emailaddress | cctqm@public.cz.js.cn |
IIContactInformation
BoardSecretary | SecuritiesRepresentative | |
Name | HeJianjiang | |
Address | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
Tel. | (86)519-68683155 | |
Fax | (86)519-86630954 | |
Emailaddress | cchjj@changchai.com |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
NewspapersdesignatedbytheCompanyforinformationdisclosure | SecuritiesTimes,TaKungPao(HK) |
WebsitedesignatedbyCSRCforpublicationofthisReport | http://www.cninfo.com.cn |
PlacewherethisReportislodged | BoardSecretariatoftheCompanyandtheShenzhenStock |
Exchange
IVChangetoCompanyRegisteredInformation
ExchangeUnifiedsocialcreditcode
Unifiedsocialcreditcode | 91320400134792410W |
ChangetoprincipalactivityoftheCompanysincegoingpublic | Nochange |
Everychangeofcontrollingshareholdersinceincorporation | On22November2018,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmenttransferreditsentireholdingsof170,845,236sharesintheCompany(astakeof30.43%)toChangzhouInvestmentGroupCo.,Ltd.fornocompensation.Thesesharesarenon-restrictedpublicshares. |
VOtherInformation
TheindependentauditfirmhiredbytheCompany:
Name | JiangsuGongzhengTianyeCertifiedPublicAccountantsLLP |
Officeaddress | YingtongCommerceBuilding,Changzhou,Jiangsu,China |
Accountantswritingsignatures | DaiWeizhong,XuWenxiang |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√Notapplicable
VIKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes√No
2018 | 2017 | 2018-over-2017change(%) | 2016 | |
Operatingrevenue(RMB) | 2,132,902,718.60 | 2,423,058,958.29 | -11.97% | 2,283,028,855.52 |
Netprofitattributabletothelistedcompany’sshareholders(RMB) | 62,021,374.04 | 46,431,302.73 | 33.58% | 62,539,896.17 |
Netprofitattributabletothelistedcompany’sshareholders | -43,333,196.13 | 18,818,435.16 | —— | 56,835,566.28 |
beforeexceptionalitems(RMB)
beforeexceptionalitems(RMB) | ||||
Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 273,819,526.89 | -121,669,279.39 | —— | 99,473,944.04 |
Basicearningspershare(RMB/share) | 0.11 | 0.08 | 37.50% | 0.11 |
Dilutedearningspershare(RMB/share) | 0.11 | 0.08 | 37.50% | 0.11 |
Weightedaveragereturnonequity(%) | 2.84% | 2.00% | 0.84% | 3.00% |
31December2018 | 31December2017 | Changeof31December2018over31December2017(%) | 31December2016 | |
Totalassets(RMB) | 3,542,019,195.75 | 3,722,905,285.05 | -4.86% | 3,724,857,266.71 |
Equityattributabletothelistedcompany’sshareholders(RMB) | 2,043,308,026.74 | 2,246,896,857.86 | -9.06% | 2,323,712,892.92 |
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS□Applicable√NotapplicableNodifferencefortheReportingPeriod.2.NetProfitandEquityunderCASandForeignAccountingStandards□Applicable√NotapplicableNodifferencefortheReportingPeriod.
VIIIKeyFinancialInformationbyQuarter
Unit:RMB
Q1 | Q2 | Q3 | Q4 | |
Operatingrevenue | 593,008,785.46 | 593,752,106.80 | 432,605,495.58 | 513,536,330.76 |
Netprofitattributabletothelistedcompany’sshareholders | 11,343,577.44 | 7,294,980.22 | 4,670,842.38 | 38,711,974.00 |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalitems | 11,141,982.06 | 6,120,841.19 | -5,982,192.17 | -54,613,827.21 |
Netcashgeneratedfrom/usedinoperatingactivities | -73,259,277.76 | 67,650,424.61 | -48,642,944.44 | 328,071,324.48 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.□Yes√No
IXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item | 2018 | 2017 | 2016 | Note |
Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -265,966.68 | 1,005,800.62 | 6,254,028.26 | |
Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 6,291,685.65 | 8,456,560.85 | 7,948,135.65 | |
Capitaloccupationchargesonnon-financialenterprisesthatarechargedtocurrentprofitorloss | 938,737.87 | 1,200,592.21 | 1,340,364.82 | |
IncomeequaltotheamountbywhichinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheCompany’senjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments | 19,924,486.12 | |||
Gainorlossonfair-valuechangesintradingfinancialassetsandliabilities&investmentincomefromdisposaloftradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets | 105,672,874.83 | 654,862.68 | 1,058,569.81 | Saleofthe20,000,000BankofJiangsusharesintheReportingPeriod |
(exclusiveofeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness)
(exclusiveofeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | ||||
Reversedportionofimpairmentallowanceforloanbymandatewhicharetestedindividuallyforimpairment | 10,000,000.00 | |||
Gainorlossonre-measurementbythefairvalueofequityinterestsinjointventuresbeforeacquisitiondatesinbusinesscombinationsnotundercommoncontrol | 1,751,203.43 | |||
Non-operatingincomeandexpenseotherthantheabove | 1,392,895.84 | -4,441,830.05 | -9,328,953.27 | |
Less:Incometaxeffects | 18,670,371.98 | 951,629.77 | 1,294,119.50 | |
Non-controllinginterestseffects(netoftax) | 5,285.36 | -12,821.48 | 273,695.88 | |
Total | 105,354,570.17 | 27,612,867.57 | 5,704,329.89 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod
Asamanufacturer,wespecializeinthemanufactureandsaleofdieselengines,dieselenginefittingsandcastings,gasolineengines,gasolineenginefittings,rotovators,walkingtractors,moldsandjigsaswellastheassemblyandsaleofdieselengineandgasolineenginesupportingsets.
Wemainlymanufactureandsellsmallandmedium-sizedsingle-cylinderandmulti-cylinderdieselenginesunderthebrandof“Changchai”,whichareoftenusedintractors,combine-harvesters,lightcommercialvehicles,agricultureequipment,small-sizedengineeringmachinery,generatorsets,shipmachines,etc.
IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
Majorassets
Majorassets | Mainreasonforsignificantchanges |
Monetarycapital | TheendingamountstoodatRMB800,960,036.69,up86.14%fromthebeginningamount,primarilyduetothecompany'ssaleofsharesofJiangsuBankandthematurityofsomebankacceptancebillsheldbythecompany. |
Otherreceivables | TheendingamountstoodatRMB9,244,584.42,up59.53%fromthebeginningamount,primarilydrivenbythetemporaryloansgrantedbythesubsidiaryChangzhouHoushengInvestmentCo.,Ltd.toChangzhouChangjiangFoundryMaterialsCo.,Ltd.,amongothers,intheReportingPeriod. |
Available-for-salefinancialassets | TheendingamountstoodatRMB498,851,369.49,down37.13%fromthebeginningamount,primarilydrivenbythesaleofthe20,000,000BankofJiangsusharesintheReportingPeriod. |
2.MajorAssetsOverseas□Applicable√Notapplicable
IIICoreCompetitivenessAnalysis
1.AdvantagesinBrand
Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9000qualitysystem,ISO14001
environmentalmanagementsystem,ISO/TS16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“JiangsuIndependentIndustriesBrandTop50”,“QualityManagementExcellenceAwardofJiangsuProvince”,“MayorQualityAwardofChangzhouCity”,alsoourcompanywonasthe10usersmostsatisfiedleadingbrandsin“JingGeng”competitioninthelastfiveyears,aswellasChina’sMostValuableBrandsTop500for14consecutiveyears.In2018,theCompanywasgrantedthehonorsofScienceandTechnologyAwardofChina’sMachineryIndustry,AnnualMostInfluentialBrandofChina’sAgriculturalMachineryIndustry,40yearsofReformandOpening-upAward-OutstandingContributionEnterpriseofJiangsuAgriculturalMachineryIndustry,40yearsofReformandOpening-upAward-OutstandingContributionofChina’sAgriculturalMachineryIndustry,andModelEnterprisesofNationalQualityandCreditBenchmark.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.2.AdvantagesinTechnology
TheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.In2018,theCompanyappliedcommonrailtechnologytosinglecylinderdieselengineforthefirsttime.The3M78seriesdieselenginewasalsograntedthefirstComplianceCertificateforEuroVEmissionStandardsofNon-roadMobileMachineryunder19kWinChina.Thefirstmassproductionofair-cooledandwater-cooledcommonrailsinglecylinderenginesfornon-roadStateIIIelectroniccontrolmodelwaslaunched.Theproject“KeyTechnologiesofGSeriesAgriculturalDieselEngines”appliedbytheCompanywasgrantedthesecondprizeofScienceandTechnologyAwardofChina’sMachineryIndustry.Currently,theCompanyhasatotalof139patentsgrantedbyauthoritiesathomeandabroad,including14inventionpatents.3.AdvantagesinMarketing
Changchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,27salesservicecenters,and799servicestations.TheCompanyhaspassedthecustoms’high-levelenterprisecertification.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverview
In2018,Chinawasfacinganegativemacroeconomicenvironment.Affectedbychangesinagriculturalsubsidies,emissionregulationupdates,fluctuationsinrawmaterialpricesandotherfactors,theagriculturalmachinerymarketwasunderdepression.Inthedeepadjustmentstageoftheagriculturalmachineryindustry,theCompanystrengthenedproductadvantages,acceleratedmarketexpansionandpushedforwardproductplanningstepbystep.Meanwhile,managementandoperationalefficiencyhavebeenimprovedtosomedegree.Despitetheintensifiedmarketcompetition,theCompanymaintainedanorderlydevelopment.Withthedeclineintheoverallsalesofthesinglecylinderengineindustry,theCompany’ssalesalsodeclinedbutataslowerpacethantheindustryaverage,whilemaintainingthelargestmarketshareintheindustry.DuringtheReportingPeriod,theCompanysold713,300thousandunitsofdieselengines,gasolineenginesandrelatedgeneratorsets,including138,000unitsofgasolineengines,generatingtotalsalesrevenueofRMB2,132,902,718.60,adropof11.97%overlastyear.
Inrespectofproductdevelopmentandstructuraladjustment,severalcommonrailmodelsofsinglecylinderandmulti-cylinderengineshavebeendevelopedtofullymeettheStateIIIemissionstandardsofnon-roadmobilemachineryandtheStateVemissionstandardsofroadmobilemachinery,leavingspaceformeetinghigheremissionstandards.Productmodelscoverfarmmachinerysuchasharvestersandtractorsindifferentpowersections,andgraduallyinvolvedinthesubdivisionfieldsoftowerbasestation,shipmachine,prospecting,transportationandsoon.
Intermsofqualitymanagement,theCompanyfurtherimprovedthequalitycontrolprocessofproductdevelopmentprocess.Itpromotedtechnicalexchanges,qualitymanagement,andtheadjustmentofproductdevelopment.Duringthereportingperiod,Changchaiorganized31QCgroupactivities,andtheexcellentQCachievementsrecommendedoutwardswereincludedinthenationalmechanicalindustryqualityachievementcollections.
Speakingofmarketingmanagement,theCompanysolidifiedtheexistingadvantagesandenlargedtheshareofsuperiorproducts.Itkeptimprovingservicecapabilitiesbybuildinggoodcooperativepartnershipwithcustomersandsuppliers,adaptingtomarketchangesforopportunitiestoexpandthemarketandpromotingnewareasofsupportingproducts.In2018,Changchaiachievedamarketservicesatisfactionofproductshigherthantheaveragelevelin2016and2017andanincreasinglygreatermarketreputation.
Toachievebetterinternalmanagement,theCompanyfurtherimprovedtheArticlesofAssociation,reinforcedtheconstructionofinternalcontrolsystemandthesupervisionofkeyprojects.Bydeepeningthemedium-termspecialaudit,itimprovedriskpreventionandcontrolabilityandthequalityofinternalauditwork.Astimelymeasuresaretakentosolveproblems,operationalefficiencyoftheCompanyisimproved.
IICoreBusinessAnalysis
1.OverviewSee“IOverview”above.2.RevenueandCostAnalysis(1)BreakdownofOperatingRevenue
Unit:RMB
2018
2018 | 2017 | Change(%) | |||
Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
Total | 2,132,902,718.60 | 100% | 2,423,058,958.29 | 100% | -11.97% |
Byoperatingdivision | |||||
Internalcombustionengines | 2,093,039,249.58 | 98.13% | 2,393,799,573.65 | 98.79% | -12.56% |
Other | 39,863,469.02 | 1.87% | 29,259,384.64 | 1.21% | 36.24% |
Byproductcategory | |||||
Dieselengines | 1,945,336,290.52 | 91.21% | 2,232,948,960.31 | 92.15% | -12.88% |
Gasolineengines | 130,329,100.71 | 6.11% | 160,850,613.34 | 6.64% | -18.98% |
Other | 57,237,327.37 | 2.68% | 29,259,384.64 | 1.21% | 95.62% |
Byoperatingsegment | |||||
Domestic | 1,785,012,986.06 | 83.69% | 2,067,943,295.18 | 85.34% | -13.68% |
Overseas | 347,889,732.54 | 16.31% | 355,115,663.11 | 14.66% | -2.03% |
(2)OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit√Applicable□NotapplicableIstheCompanysubjecttoanyindustry-specificdisclosurerequirements?No.
Unit:RMB
Operatingrevenue | Costofsales | Grossprofit | YoYchangeinoperating | YoYchangeincostofsales | YoYchangeingrossprofit |
margin
margin | revenue(%) | (%) | margin(%) | |||
Byoperatingdivision | ||||||
Internalcombustionengines | 2,093,039,249.58 | 1,782,146,126.35 | 14.85% | -12.56% | -13.23% | 0.65% |
Byproductcategory | ||||||
Dieselengines | 1,945,336,290.52 | 1,654,092,356.37 | 14.97% | -12.88% | -13.51% | 0.62% |
Gasolineengines | 130,329,100.71 | 114,016,043.86 | 12.52% | -18.98% | -19.38% | 0.44% |
Other | 57,237,327.37 | 45,336,185.43 | 20.79% | — | — | — |
Byoperatingsegment | ||||||
Domestic | 1,785,012,986.06 | 1,474,704,353.06 | 17.38% | -13.68% | -14.60% | 0.89% |
Overseas | 347,889,732.54 | 338,740,232.60 | 2.63% | -2.03% | -2.11% | 0.08% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue√Yes□No
Operatingdivision | Item | Unit | 2018 | 2017 | Change(%) |
Dieselengines | Unitsales | Unit | 556,443 | 686,264 | -18.92% |
Output | Unit | 562,223 | 661,077 | -14.95% | |
Inventory | Unit | 65,596 | 59,816 | 9.66% |
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√Notapplicable(4)ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
Productcategory | Item | 2018 | 2017 | Change(%) | ||
Costofsales | As%oftotalcostofsales | Costofsales | As%oftotalcostofsales |
(%)
(%) | (%) | |||||
Dieselengines | Rawmaterials | 1,422,647,277.45 | 78.45% | 1,625,846,295.28 | 78.43% | -12.50% |
Dieselengines | Laborcost | 238,105,274.10 | 13.13% | 272,591,904.14 | 13.15% | -12.65% |
Dieselengines | Depreciation | 75,456,887.66 | 4.16% | 76,438,334.33 | 3.69% | -1.28% |
Dieselengines | Energy | 28,471,079.99 | 1.57% | 32,657,278.01 | 1.58% | -12.82% |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod□Yes√No(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod□Applicable√Notapplicable(8)MajorCustomersandSuppliers
Majorcustomers:
Totalsalestotopfivecustomers(RMB) | 863,147,321.92 |
Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 40.47% |
Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivecustomers:
No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
1 | Customer1 | 370,156,919.61 | 17.35% |
2 | Customer2 | 167,159,534.53 | 7.84% |
3 | Customer3 | 140,526,505.47 | 6.59% |
4 | Customer4 | 98,451,038.00 | 4.62% |
5 | Customer5 | 86,853,324.31 | 4.07% |
Total | -- | 863,147,321.92 | 40.47% |
Otherinformationaboutmajorcustomers:
□Applicable√Notapplicable
Majorsuppliers:
Totalpurchasesfromtopfivesuppliers(RMB) | 242,596,738.21 |
Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 15.30% |
Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivesuppliers:
No.
No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
1 | Supplier1 | 109,533,473.78 | 6.91% |
2 | Supplier2 | 47,748,909.62 | 3.01% |
3 | Supplier3 | 35,176,114.00 | 2.22% |
4 | Supplier4 | 25,685,549.31 | 1.62% |
5 | Supplier5 | 24,452,691.50 | 1.54% |
Total | -- | 242,596,738.21 | 15.30% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable3.Expense
Unit:RMB
2018 | 2017 | Change(%) | Reasonforanysignificantchange | |
Sellingexpense | 126,997,066.87 | 102,297,713.37 | 24.14% | |
Administrativeexpense | 116,027,838.96 | 107,835,619.11 | 7.60% | |
Financecosts | -903,762.30 | -2,290,794.39 | — | MainlyduetothedecreaseincorporateinterestincomeandtheincreaseinbankchargesduringtheReportingPeriod. |
R&Dexpenses | 72,182,840.78 | 76,715,296.15 | -5.91% |
4.R&DExpense√Applicable□NotapplicableDetailsaboutR&Dexpense:
2018 | 2017 | Change(%) | |
NumberofR&Dpersonnel | 368 | 373 | -1.34% |
R&Dpersonnelas%oftotalemployees | 11.55% | 10.87% | 0.68% |
R&Dexpense(RMB) | 72,182,840.78 | 76,715,296.15 | -5.91% |
R&Dexpenseas%ofoperatingrevenue | 3.38% | 3.17% | 0.21% |
CapitalizedR&Dexpense(RMB) | 0.00 | 0.00 | 0.00% |
CapitalizedR&Dexpenseas%oftotalR&Dexpense | 0.00% | 0.00% | 0.00% |
ReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable5.CashFlows
Unit:RMB
Item
Item | 2018 | 2017 | Change(%) |
Subtotalofcashgeneratedfromoperatingactivities | 2,494,609,605.84 | 2,406,119,189.23 | 3.68% |
Subtotalofcashusedinoperatingactivities | 2,220,790,078.95 | 2,527,788,468.62 | -12.14% |
Netcashgeneratedfrom/usedinoperatingactivities | 273,819,526.89 | -121,669,279.39 | —— |
Subtotalofcashgeneratedfrominvestingactivities | 157,994,762.83 | 21,199,959.56 | 645.26% |
Subtotalofcashusedininvestingactivities | 51,775,807.81 | 175,764,577.00 | -70.54% |
Netcashgeneratedfrom/usedininvestingactivities | 106,218,955.02 | -154,564,617.44 | —— |
Subtotalofcashgeneratedfromfinancingactivities | 40,700,000.00 | 51,900,000.00 | -21.58% |
Subtotalofcashusedinfinancingactivities | 58,922,496.75 | 33,680,577.83 | 74.95% |
Netcashgeneratedfrom/usedinfinancingactivities | -18,222,496.75 | 18,219,422.17 | —— |
Netincreaseincashandcashequivalents | 361,815,985.16 | -258,014,474.66 | —— |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable□Notapplicable
Thesignificantchangesofnetcashflowsfromoperatingactivitiesweremainlyduetothecashcollectionofbankacceptancedraftheldbythebank.
ThesignificantchangesofnetcashflowsfrominvestingactivitieswasthejointinfluenceofthecashinflowsfromtheCompanysellingthestocksofBankofJiangsu,andcashoutflowsfrominvestingChangzhouSynergeticEquityInvestmentPartnership(LLP).
ThesignificantchangesofnetcashflowsfromfinancingactivitiesweremainlyduetotheincreaseofreturningbankloansintheReportingPeriod.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod√Applicable□Notapplicable
Itwasduetothebankacceptancebilliscollectedandrealized,theincreaseofnetcashflowsfromoperatingactivities;thesaleofthestocksofBankofJiangsuwhichobtainedmuchinvestmentincomeandaddedthecashflowsfrominvestingactivities.
IIIAnalysisofNon-CoreBusinesses
□Applicable√Notapplicable
IVAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
31December2018
31December2018 | 31December2017 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
Amount | As%oftotalassets | Amount | As%oftotalassets | |||
Monetarycapital | 800,960,036.69 | 22.61% | 430,305,367.71 | 11.56% | 11.05% | TheendingamountstoodatRMB800,960,036.69,up86.14%fromthebeginningamount,primarilyduetothecompany'ssaleofsharesofJiangsuBankandthematurityofsomebankacceptancebillsheldbythecompany. |
Accountsreceivable | 378,859,159.11 | 10.70% | 392,010,953.55 | 10.53% | 0.17% | |
Inventories | 557,953,891.70 | 15.75% | 508,246,807.48 | 13.65% | 2.10% | |
Investmentproperty | 50,656,007.63 | 1.43% | 52,864,348.43 | 1.42% | 0.01% | |
Long-termequityinvestments | 0.00 | 0.00% | 0.00 | 0.00% | 0.00% | |
Fixedassets | 511,250,371.37 | 14.43% | 560,049,970.50 | 15.04% | -0.61% | |
Constructioninprogress | 89,090,384.71 | 2.52% | 94,581,989.06 | 2.54% | -0.02% | |
Short-termborrowings | 27,000,000.00 | 0.76% | 24,900,000.00 | 0.67% | 0.09% | |
Long-termborrowings | 2,000,000.00 | 0.06% | 21,500,000.00 | 0.58% | -0.52% |
2.AssetsandLiabilitiesatFairValue√Applicable□Notapplicable
Unit:RMB
Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Endingamount |
Financialassets
Financialassets | ||||||
Available-for-salefinancialassets | 793,522,639.04 | -167,897,500.00 | 438,065,500.00 | 147,000,000.00 | 370,940,000.00 | |
Subtotaloffinancialassets | 793,522,639.04 | -167,897,500.00 | 438,065,500.00 | 147,000,000.00 | 370,940,000.00 | |
Totalofabove | 793,522,639.04 | -167,897,500.00 | 438,065,500.00 | 147,000,000.00 | 370,940,000.00 | |
Financialliabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No3.RestrictedAssetRightsasatthePeriod-End
Item | Endingcarryingvalue | Reasons |
Monetarycapital | 113,880,397.10 | Cashdepositsofbankacceptance’sbillandletterofcredit |
Houseconstructions | 9,151,848.69 | Mortgageofbankloan |
Landuseright | 1,005,328.00 | Mortgageofbankloan |
Machineryequipment | 51,191,810.97 | Mortgageofbankloan |
Total | 175,229,384.76 |
VInvestmentsMade
1.TotalInvestmentAmount√Applicable□Notapplicable
InvestmentsmadeinReportingPeriod(RMB) | Investmentsmadeinsameperiodoflastyear(RMB) | +/-% |
20,315,967.20 | 126,280,000.00 | -83.91% |
2.MajorEquityInvestmentsMadeintheReportingPeriod□Applicable√Notapplicable3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod□Applicable√Notapplicable4.FinancialInvestments
(1)SecuritiesInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.(2)InvestmentsinDerivativeFinancialInstruments□Applicable√NotapplicableNosuchcasesintheReportingPeriod.5.UseofFundsRaised□Applicable√NotapplicableNosuchcasesintheReportingPeriod
VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets√Applicable□Notapplicable
Counterparty
Counterparty | Soldassets | Dateofthesale | Transactionprice(RMB0’000) | NetprofitoftheassetscontributingtotheCompanyfromtheperiod-begintothe | ImpactstotheCompany | NetprofitoftheassetssalecontributingtotheCompanyas%oftotalnetprofit | Pricingprinciple | Related-partytransactionornot | Relationshipwithcounterparty | Thepropertyrightoftheinvolvedassetshastransferredownershipornot | Theinvolvedallcreditsandliabilitiestransf | Implementedasscheduleornot,ifnot,explainthereasonsandthemeasuretakenbythe | Disclosuredate | Disclosureindex |
dateofthesale(RMB0’000)
dateofthesale(RMB0’000) | erredornot | Company | ||||||||||||
Secondarymarket | BankofJiangsu’sstocks | 22November2018 | 6,534.83 | 5,534.83 | LiquidizingremnantassetsoftheCompany,andsupportingthedevelopmentofmainbusiness | 89.24% | Centralizedbidding | No | Not-related | Yes | Yes | Yes | 23November2018 | 2018-032 |
Secondarymarket | BankofJiangsu’sstocks | 24December2018 | 5,908.05 | 4,908.05 | Raisingfundstoimplementtheprojectoflightengines | 79.13% | Centralizedbidding | No | Not-related | Yes | Yes | Yes | 25December2018 | 2018-047 |
2.SaleofMajorEquityInterests□Applicable√Notapplicable
VIIMajorSubsidiaries
√Applicable□Notapplicable
Majorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
Name
Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 171,749,235.63 | 89,780,051.07 | 199,151,372.46 | -2,055,514.73 | -1,447,732.64 |
ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 71,640,662.30 | 48,874,516.38 | 46,653,660.46 | 1,362,904.18 | 1,117,933.80 |
HoushengInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 47,236,108.89 | 46,302,405.6 | 938,737.87 | 909,172.33 | 640,592.73 |
HoushengAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 36,401,983.51 | 1,373,471.21 | 17,505,784.08 | -6,040,644.34 | -6,036,994.34 |
ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 94,799,310.09 | 81,500,148.68 | 130,329,100.71 | 10,103,960.02 | 6,896,226.52 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable√Notapplicable
VIIIStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
IXProspects
1.Industrycompetitionstructureanddevelopmenttendency
In2018,China'sagriculturalmachineryindustrywasinaperiodofdeepadjustment.Thenewagriculturalmachinerymarketdevelopedrapidly,andnichemarketwaspreferredbyconsumers.Thetraditionalagriculturalmachinerymarketwasfacingchallengesanddifficultiesfromtransformationandupgrading.In2019,China'sagriculturalmachinerymarketisexpectedtostayinaperiodofcyclicallowebb.Theindustrywillbestillinaperiodofdeepadjustment,astheenvironmentalprotectiongovernancewillbecomemorestringent,butonthe
otherhand,thenationalmacro-economywillbepositiveinthelongrun.Theagriculturalmachinerymarketisprospectivefromtheperspectiveoflong-termdevelopment.Astotalmarketdemandislarge,itisnotonlyanopportunitybutalsoachallengeforagriculturalmachinerymanufacturers,whoneedtoacceleratetheupgradingofagriculturalmachineryproductsandtechnology.
Inaddition,thehugepressurebroughtbythenewenergyindustrytotraditionalinternal-combustionenginecompanieshasforcedtraditionalenginemanufacturerstoactivelyorpassivelybecomeinvolvedinthedevelopmentofnewenergyautomotiveindustries.
Atpresent,thedevelopmenttrendandmarketsituationoftheindustryaremainlyasfollows:firstly,thedemandforagriculturalmachineryandcommercialvehiclesslowsdown,bringingfurthercompetitionoftheindustry;secondly,marketneedstimetoaccepttherisingcostofproductemissionupgrade;thirdly,usersareveryconcernedaboutreliability,vibration,noiseandappearancequalityofdieselengines,andtheextensionofThreeGuaranteesincreasestheservicecostoftheenterprise.Overall,thedieselmarketcompetitionisfierce.Theindustrywillfurtherreshuffle,andtherewillbebettermarketprospectsfordieselengineswithhigh-performanceinenergysavingandenvironmentalprotection.
2.Companydevelopmentstrategies:
Tobaseonthefarmmachinery,dostrongerinthepower,developthefieldsanddevelopscientifically.
ThecurrentproductsmarketstructureoftheCompanymainlydistributedinthefarmequipmentsuchasthewalkingtractor,bigsmallandmedium-sizedwheeledtractors,caterpillartractors,gardeningtractors,plantprotectiontractors,tractorsforpeanutharvest,andcombineharvesters;agriculturalsmallconstructionmachinery,threeroundsandlow-speedvehicles;lighttrucks,pickupsautomobileindustry;generatorandwaterpump,smallshipauxiliarymachinery.TheCompanywouldtakethemarketandusers’demandsastheorientationtoseizethemainlineoftheproductsandtoimprovethequalityandincreasetheefficiencyaswellastodobetterinthepowerandtoconstantlyenhancethemarketcompetitiveness.
Inthefieldofagriculturalmachinery,theCompanymaintainedaleadingpositioninthehorsepowersegmentandcontinuestoexpandthemarketshare,andactivelyexploredandenteredthemarketinlarge-horse-poweredvehiclesandnon-road-specificpowersupportingareasforengineeringuse.Intheterminalarea,theCompanyactivelyexpandedthemarketshareoftransplanterproducts.Inaddition,theCompanyextendeditsproductstructuretothegasolineenginefieldbyacquiringajointventurewithChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.TheCompanywillfurtherinnovatethemanagementmechanism,acceleratetheprogressofproductdevelopmentandvigorouslyexpandthemarkettopromotethesustainedandsteadydevelopmentoftheCompany.
3.OperationPlanfortheYear2019:
Weshouldimprovethequalityofsinglecylindermachinery,andexpandapplicationofmulti-cylindermachinery.Inrespectofterminal,weshouldpursuebreakthroughandinternalcostsavings.Asparkconstructioncommenced,weshouldaccelerateindustrialtransformationandupgrading.ThesalesincomeachievesRMB2.1billionandsalesofnewproductsexceed80,000setsareexpectedin2019.
TheaboveoperationplandoesnotrepresenttheprofitforecastofY2019bythelistedcompany,andwhethercanberealizeddependsonvariousfactorsonthechangesofmarketconditionsandtheeffortlevelofthemanagementteam.Thereisalotofuncertainty,andinvestorsshouldpayspecialattentiononit.
4.Possiblerisksandcountermeasures:
(1)Marketrisk:
Withfiercecompetition,over-capacityofsomeproductsandthetotalavailablemarketofthesinglecylinderenginewereinadeclinetendencyaswellasthedemandfromtheindustrywasinsufficient.Andtheprofitabilityoftheenterprisesfacedwithrathergreatpressure.Inthefuture,emissionstandardsofinternalcombustionengines
willbefurtherupdatedandairpollutioncontrolwillbefurtherstringent.Safetyproductionandenvironmentalprotectionwillbenormalized,andtheindustrywillstillbeinaperiodofdeepadjustment.However,long-termimprovementofthenationalmacro-economyremainsunchanged,andtheagriculturalmachinerymarketisstillpromisingwithalargetotalmarketdemand.
TheCompanytakesthefollowingcounter-measuresforfuturedevelopment:
Toenhancetheadvantagesofkeyproductsandthefollow-upR&DstrengthoftheCompany.2.Toadapttomarketchangesforopportunitiestoexpanddomesticandforeignmarkets.3.Toimproveinternalandexternalqualitycontrolandpromotethequalityofwholemachineandpartsuptoanewlevel.
4.Toproceedwithtechnologicaltransformationprojectsinanorderlymannerandimprovecompanyequipment.
5.Tofurtherimplementleanmanagementforimprovementsofproductionandoperationefficiency.
6.Toimprovethequalityofemployeesandprovidehumanresourcessupportforcompanydevelopment.
(2)Industrialrisk:
Therapiddevelopmentofnewenergyvehiclesisboundtoaffectthetraditionalfuelautomobileindustryanditsindustrialchain,specifically,itwilldirectlyaffecttheengineandgearboxmanufacturingindustry,andgenerateagreaterimpactonthetraditionalgasolineanddieselengineindustry.Althoughthematurityofrelatedindustriesinthefieldofnewenergymaytakeyears,morethanadecadeorevenlongerfortransition,thetrendisinevitable.Inresponsetotheupgradingofemissionstandardsandtherapiddevelopmentofnewenergyindustries,enterprisesinthetraditionalinternal-combustionengineindustryneedtoseeknewdevelopmentopportunitiestoshiftindustrialrisks.
Countermeasures:
Thefirstmeasureistopreparelayoutinnewenergyindustriesinadvancetoseizetheopportunityforindustrydevelopment.
ThesecondoneistoincreasetheR&Dintensityofnewproductsthatmeetsthestandardsofnon-roadnationalGradeIVandothernewproducts,increaseproductemissionstandards,andtakeadvanceddieselengineproductsasthebasisoftheCompanytoexplorethedevelopmentdirectionofnewindustriesandmeettheindustrialupgradingandtransformation.
(3)Policyrisk:
Themacro-economicenvironmentiscomplexandchangeable,economicgrowthisslowingdownandthepolicyonthedieselengineemissionsisbecomingstricterandstricter,whichincreasedtheoperatingdifficultiesandthepressure.Assuch,themarketdemandsforsomeproductsoftheCompanywillbeaffectedtosomeextent.
Countermeasures:TheCompanywillpaycloseattentiontothegovernment’seconomicmacro-controlpoliciesandmarketdevelopments.Topromotetheworksuchas“promotetheproductsupgradeandqualityenhancing”,toembracetheupgradingoftheengineemissionstandards,toacceleratetheforgingofthenew“StandardV”platform,andtoexecutethenecessaryproductsresourcesreservesinadvance.
(4)Talentrisk:
AstheCompanykeeps,inrecentyears,improvingoperationalefficiencyandtechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend,thedemandforprofessionalandseniormanagementpersonnelisgreatlyincreased.
Countermeasures:
Firstly,introduceallkindsofhigh-rankingtalentsthroughvarietiesofchannelsandstrengthenpersonneltraining.
Secondly,theCompanyalsomakesoptimizationintheperformanceappraisalsystemandincentivepay
systemandstrengthensthetrainingofemployeestoreducethelossofprofessionalsandstrengthenspersonnelfortheconstructionoftalentedpersonnelteams.
XCommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
1.DuringtheReportingPeriod√Applicable□Notapplicable
Date
Date | Wayofcommunication | Typeofcommunicationparty | Indextomaininformationcommunicated |
23December2018 | Other | Individual | InquiredtheequityinvestmentoftheCompany |
23December2018 | Other | Individual | InquiredtheinvestedprojectoftheCompany |
19December2018 | Other | Individual | InquiredthefutureplanningoftheCompany |
18December2018 | Other | Individual | InquiredwhethertherewashorizontalcompetitionofinvestmentprojectoftheCompany |
12December2018 | Other | Individual | Inquiredthesituationsofmajority-ownedsubsidiaryoftheCompany |
10December2018 | Other | Individual | InquiredtheconditionsofthelandwhichwillbepurchasedinthefutureoftheCompany |
10December2018 | Other | Individual | InquiredtheprogressoftheprojectoflithiumbatterymembraneofindustryfundsestablishedbytheCompany |
27November2018 | Other | Individual | InquiredtheoperationsoftheCompany |
20November2018 | Other | Individual | InquiredthesharerepurchasesoftheCompany |
19November2018 | Other | Individual | InquiredtheequityinvestmentprojectoftheCompany |
19November2018 | Other | Individual | InquiredtheequityinvestmentprojectoftheCompany |
16November2018 | Other | Individual | InquiredtheparticipationinprofitoftheCompany |
16November2018 | Other | Individual | InquiredtheoperationsoftheCompany |
16November2018 | Other | Individual | InquiredthesharerepurchasesoftheCompany |
12November2018 | Other | Individual | InquiredtheequityinvestmentprojectoftheCompany |
31October2018 | Other | Individual | InquiredtheequitytransferoftheCompany |
22October2018 | Other | Individual | InquiredtheequitytransferoftheCompany |
22October2018 | Other | Individual | InquiredtheequitytransferoftheCompany |
13August2018 | Other | Individual | InquiredtheprogressoftheprojectoflithiumbatterymembraneofindustryfundsestablishedbytheCompany |
18July2018
18July2018 | Other | Individual | InquiredtherepurchaseofBshare | |
1June2018 | Other | Individual | InquiredtheequitytransferoftheCompany | |
11May2018 | Other | Individual | InquiredtheshareholdingsofseniorexecutivesoftheCompany | |
11May2018 | Other | Individual | Inquiredthereformofstate-ownedenterprises | |
6April2018 | Other | Individual | Inquiredthereformofstate-ownedenterprisestowardmixedsystem | |
31March2018 | Other | Individual | InquiredthereformoftheCompany | |
31March2018 | Other | Individual | InquiredthemarketvaluemanagementoftheCompany | |
31March2018 | Other | Individual | InquiredthecooperationwithJiangsuWorld | |
13March2018 | Other | Individual | InquiredthedevelopmentofSoutheastAsianmarketoftheCompany | |
13March2018 | Other | Individual | Inquiredthereformofstate-ownedenterprisestowardmixedsystem | |
29January2018 | Other | Individual | InquiredthetimetodisclosetheearningspreannouncementoftheCompany | |
18January2018 | Other | Individual | Inquiredthecooperationwithscientificresearchinstitutionandinstitutionofhighereducation | |
3January2018 | Other | Individual | Inquiredthecooperationintentionwithforeigncompanies | |
Timesofcommunications | 32 | |||
Numberofinstitutionscommunicatedwith | 0 | |||
Numberofindividualscommunicatedwith | 32 | |||
Numberofothercommunicationparties | 0 | |||
Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | None |
PartVSignificantEvents
IProfitDistributionstoOrdinaryShareholders(intheFormofCashand/orStock)
Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,forordinaryshareholderswasformulated,executedorrevisedintheReportingPeriod:
√Applicable□Notapplicable
InArticlesofAssociation,whichhadconfirmedthespecificprofitsdistributionandclearedouttheconditions,standardsandproportionofthecashbonus,stipulatedthedecision-makingprogressoftheformulationandalternationoftheprofitsdistributionpoliciesandthechaptersaswellastheregulationsfullyensuretheopportunitiesforthemediumandsmallshareholderstoexertthefunctionsandtoprovideadvicesaswellasappeals.Thecashbonusofrecent3yearsoftheCompanymetwiththeregulationsoftheArticlesofAssociationandduringthedecision-makingprocessoftheprofitsdistributionproposal,theIndependentDirectorsstatedtheindependentadvicesandfullyrespectedtheadvicesfromthemediumandsmallshareholders.TheprofitsdistributionpreplanandtheturningcapitalreserveintosharecapitalpreplanoftheCompanywerebothmetwiththerelevantregulationsoftheArticlesofAssociationandsoon.
Specialstatementaboutthecashdividendpolicy
Specialstatementaboutthecashdividendpolicy | |
IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
Specificandcleardividendstandardandratio | Yes |
Completedecision-makingprocedureandmechanism | Yes |
Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | N/A |
Theprofitdistributionstoordinaryshareholders,eitherintheformofcashorstock,inthepastthreeyears(includingtheReportingPeriod)aresummarizedasfollows:
Year | Profitsdistributionproposal | Turningcapitalreserveintosharecapitalproposal | Execution |
2018 | DistributedRMB0.25ofevery10shares(taxesincluding) | No | StillneededtosubmittotheAnnualGeneralMeeting |
2017 | DistributedRMB0.30ofevery10shares(taxesincluding) | No | Finishedtheexecution |
2016 | DistributedRMB0.30ofevery10 | No | Finishedtheexecution |
shares(taxesincluding)
Cashdividendforordinaryshareholdersinthepastthreeyears(includingtheReportingPeriod):
Unit:RMB
shares(taxesincluding)
Year
Year | Cashdividends(taxinclusive)(A) | Netprofitattributabletoordinaryshareholdersofthelistedcompanyinconsolidatedstatementsfortheyear(B) | Aas%ofB(%) | Cashdividendsinotherforms(C) | Cas%ofB(%) | Totalcashdividends(includingthoseinotherforms)(D) | Das%ofB(%) |
2018 | 14,034,358.15 | 62,021,374.04 | 22.63% | 0.00 | 0.00% | 14,034,358.15 | 22.63% |
2017 | 16,841,229.78 | 46,431,302.73 | 36.27% | 0.00 | 0.00% | 16,841,229.78 | 36.27% |
2016 | 16,841,229.78 | 62,539,896.17 | 26.93% | 0.00 | 0.00% | 16,841,229.78 | 26.93% |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive.□Applicable√Notapplicable
IIFinalDividendPlanfortheReportingPeriod
√Applicable□Notapplicable
Bonussharesforevery10shares(share) | 0 |
Dividendforevery10shares(RMB)(taxincluded) | 0.25 |
Turningcapitalreserveintosharecapitalforevery10shares(share) | 0 |
Totalsharesasthebasisfortheallocationpreplan(share) | 561,374,326 |
Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 0 |
Totalcashdividends(includingthoseinotherforms)(RMB) | 14,034,358.15 |
Distributiveprofit(RMB) | 643,968,465.93 |
Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100.00% |
Cashdividendsituation | |
Other | |
Detailsabouttheprofitallocationorturningcapitalreserveintosharecapital | |
ThepreplanoftheprofitsdistributionreviewedandapprovedbytheBoardofDirectorsoftheCompanywas:basedonthetotalsharecapitaloftheCompanyon31December2018,theCompanydistributedthecashbonusofRMB0.25(taxincluded)ofevery10sharesforthewholeshareholders.Therewasnobonusshareandnoturnfromcapitalreservetosharecapitalof2018. |
IIIFulfillmentofCommitments
1.CommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end√Applicable□Notapplicable
Commitment
Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | bonus | RewardsPlanforShareholdersinNextThreeYears(2017-2019)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | 11May2017 | Year2017-2019 | Ongoing |
Fulfilledontime | Yes | |||||
Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A |
2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.□Applicable√Notapplicable
IVOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableTherewerenoretrospectiverestatementsduetocorrectionofmaterialaccountingerrorsintheReportingPeriod
VIYoYChangestoAccountingPolicies,EstimatesandMethods
√Applicable□Notapplicable1.Changestoaccountingpolicies
NotesoftheMinistryofFinanceonRevisingandPrintingtheFormatof2018GeneralEnterprisesFinancialStatement(CK[2018]No.15)wasissuedbytheMinistryofFinanceon15June2018,whichrevisedtheformatofgeneralenterprisesfinancialstatements.Afteritwasbeingreviewedandapprovedbythe14thMeetingofthe8thBoardofDirectors,theCompanybegantoimplementtheabove-mentionednoticeontherequiredtimebytheMinistryofFinance.Andretroactiveadjustmentwasadoptedforthechangesintheaccountingpolicy.Theitemsandamountoftheinfluencedconsolidatedbalancesheeton31December2017:
Unit:RMB
Beforeadjustment
Beforeadjustment | Afteradjustment | ||
Item | Amount | Item | Amount |
Notesreceivable | 716,404,345.57 | Notesandaccountsreceivable | 1,108,415,299.12 |
Accountsreceivable | 392,010,953.55 | ||
Otherreceivables | 5,794,971.22 | Otherreceivables | 5,794,971.22 |
Interestreceivable | 0.00 | ||
Dividendsreceivable | 0.00 | ||
Fixedassets | 560,049,970.50 | Fixedassets | 560,049,970.50 |
Disposaloffixedassets | 0.00 | ||
Constructioninprocess | 94,581,989.06 | Constructioninprocess | 94,581,989.06 |
Engineeringmaterial | 0.00 | ||
Notespayable | 347,070,500.00 | Notesandaccountspayable | 963,299,000.18 |
Accountspayable | 616,228,500.18 | ||
Otherpayables | 192,094,243.08 | Otherpayables | 195,985,676.91 |
Interestpayable | 0.00 |
Dividendspayable
Dividendspayable | 3,891,433.83 | ||
Administrativeexpense | 184,550,915.26 | Administrativeexpense | 107,835,619.11 |
R&Dexpense | 76,715,296.15 |
2.ChangestoaccountingestimatesNosuchcasesintheReportingPeriod.
VIIRetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
IXEngagementandDisengagementofIndependentAuditor
Currentindependentauditor:
Nameofthedomesticindependentauditor | JiangsuGongzhengTianyeCertifiedPublicAccountantsLLP |
TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 60 |
HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 17 |
Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | DaiWeizhong,XuWenxiang |
HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | DaiWeizhongthreeyears,XuWenxiangoneyear |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
√Applicable□NotapplicableDuringReportingPeriod,theCompanyhiredJiangsuGongzhengTianyeCertifiedPublicAccountantsLLPastheinternalcontrolauditoratthecostofRMB120,000.
XPossibilityofListingSuspensionorTerminationafterDisclosureofthisReport
□Applicable√Notapplicable
XIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorLegalMatters
√Applicable□Notapplicable
Generalinformation
Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulativelyRMB14.36milliontotheCompany.TheCompanysuedtoChangzhouIntermediatePeople’sCourtin2001andsuedforcompulsoryexecutioninApril,2002.Currently,thedefendanthasstartedthebankruptcyprocedure. | 1,436 | No | Judgedforthesecondtrial | N/A | Underthecompulsoryexecutionbythecourtandintheprocessofliquidationandbankruptcy |
XIIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIVCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√Notapplicable
XVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XVIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions□Applicable√NotapplicableNosuchcasesintheReportingPeriod.2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests□Applicable√NotapplicableNosuchcasesintheReportingPeriod.3.RelatedTransactionsRegardingJointInvestmentsinThirdParties□Applicable√NotapplicableNosuchcasesintheReportingPeriod.4.CreditsandLiabilitieswithRelatedParties□Applicable√NotapplicableNosuchcasesintheReportingPeriod.5.OtherMajorRelated-PartyTransactions□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XVIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.2.Majorguarantees√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthose
forsubsidiaries)
GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
GuaranteesbetweentheCompanyastheparentanditssubsidiaries | ||||||||
Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 29November2018 | 2,000 | 29November2018 | 2,000 | Jointliability | 1year | No | No |
TotalapprovedlineforsuchguaranteesintheReporting | 2,000 | Totalactualamountofsuchguaranteesinthe | 2,000 |
Period(B1)
Period(B1) | ReportingPeriod(B2) | |||||||
TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,000 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 2,000 | |||||
Guaranteesprovidedbetweensubsidiaries | ||||||||
Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | 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 | 0.98% | |||||||
Ofwhich: | ||||||||
Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||||||
Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 2000 | |||||||
Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||||||
Totalofthethreeamountsabove(D+E+F) | 2000 | |||||||
Explanationonpossibilitytobearjointliabilityduetoundueguarantees | N/A | |||||||
Explanationontheexternalguaranteesinviolationofstipulatedprocedures | N/A |
(2)IrregularitiesinProvisionofGuarantees□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.3.CashEntrustedtoOtherEntitiesforManagement(1)CashEntrustedforWealthManagement√Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
Specifictype
Specifictype | Capitalresources | Amountincurred | UndueBalance | Overdueamount |
Brokerfinancialproducts | Self-ownedfunds | 2,208.41 | 400.00 | 0.00 |
Whetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement□Applicable√Notapplicable
(2)EntrustedLoans
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.4.OtherMajorContracts□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XVIIICorporateSocialResponsibility(CSR)
1.MeasuresTakentoFulfillCSRCommitment
TheCompanyholdstheprinciplesofcomplianceoflaws,strictprocedures,prudenceandintegrity.Basedonthecorevaluesof“customerfirst,stafffirst,rewardingshareholdersandbenefitingthesociety”,itimprovestheproductionefficiencyandoperationqualityandfulfillsitsresponsibilitiesandobligationstoshareholders,employees,consumersandsupplierstorealizecommondevelopmentoftheCompanyandstakeholders.Moreover,theCompanydevelopsbasedonnationalpoliciesandneedstoprovidesupportfortheconstructionofagriculture,countrysideandfarmers.Inordertoconformtotheconstructionoflow-carboneconomyandcoordinatewiththedirectionofsocialdevelopment,theCompanyinvestsalotinproductresearchanddevelopmentandcompletesenergyconservationandemissionreductionworkforagreenandbetterlife.
1.Guarantyofinterestsofshareholders.TheCompanyimprovesthecorporategovernancestructureandinternalmanagementcontrolsystembasedonrelevantlegalnormsandregulations.Theworkofgeneralmeetingofshareholders,boardofdirectorsandboardofsupervisorsiscarriedoutinstrictaccordancewiththeArticlesofAssociation.Thedisclosureofcompanyinformationisbasedontruth,accuracyandcompleteness.All
shareholdersenjoyfairnessandguaranteedlegitimaterightsandinterestsentitled.
2.Careforemployees.TheCompanyconsidersstafffirstandtakestheprotectionofemployees'rightsandinterestsseriously.Itinvestsalotinpersonneltrainingtoimprovestaffinitiativeandcreativityforcommondevelopmentofcompanyandstaff.Besidesperformance,theCompanyalsocaresforpersonalandfamilywell-beingofstafftobuildaharmoniouslabor-managementrelationship.
3.Protectionoftherightsandinterestsofconsumers,customersandsuppliers.TheCompanyupholdstheenterpriseethicsof“advocatingscience,integrityandtrustworthiness”inproductionandoperationactivitiesandproductsales.Itdevelopsgoodcooperativerelationswithsuppliersandcustomersandcoordinatestheworkofallpartiesforsharingofwealth.Itimprovesservicesaccordingtomarketdemandandresponseandguaranteestherightsandinterestsofcustomers.Byprovidingcompleteservicesforconsumersandimprovingcustomersatisfaction,theCompanyrealizesgreaterachievements.
4.Sustainabledevelopment.Basedonthenationalpoliciesandactualsituation,theCompanytakestheopportunityofemissionstandardupdatingofnon-roadmachineryandruralconstructiontopromotetheresearchanddevelopmentofagriculturalmachineryproductsandspeedsupproductupdating.Underthesupportofrelevantgovernmentdepartments,theCompanyproceedstheconstructionofindustrialparksinaccordancewithurbanplanninginanorderlymannertoformindustrialagglomerationfortheimplementofurbanplanningandagreenandharmoniouslivingenvironment.2.MeasuresTakenforTargetedPovertyAlleviation
TheCompanydidn’ttakeanytargetedmeasurestohelppeopleliftthemselvesoutofpovertyduringtheReportingPeriod,nosubsequentplantemporarilytoo.3.IssuesRelatedtoEnvironmentalProtection□Applicable√NotapplicableIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities.No
TheCompanyanditssubsidiariesarenotthemajorpolluteridentifiedbytheenvironmentalprotectionauthoritiesofChinaduringtheReportingPeriod.TheCompanyattachesgreatimportancetotheworkofenvironmentalprotection,andrequiresthesubsidiariestobuildcorrespondingenvironmentalprotectionfacilitiesaccordingtotheactualsituationofproductionandoperation,strictlycontrollingthepollutants,like“wastegas,wastewater,andwasteresidue”generatedfromtheproductionprocess.
XIXOtherSignificantEvents
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XXSignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformation
I.ShareChanges
1.ShareChanges
Unit:share
Before
Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
I.Restrictedshares | 0 | 0.00% | 0 | 0.00% | |||||
1.Sharesheldbythestate | 0 | 0.00% | 0 | 0.00% | |||||
2.Sharesheldbystate-ownLegal-person | 0 | 0.00% | 0 | 0.00% | |||||
3.Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0.00% | |||||
Amongwhich:sharesheldbydomesticlegalperson | 0 | 0.00% | 0 | 0.00% | |||||
Sharesheldbydomesticnaturalperson | 0 | 0.00% | 0 | 0.00% | |||||
4.Overseashareholdings | 0 | 0.00% | 0 | 0.00% | |||||
Amongwhich:sharesheldbyoversealegalperson | 0 | 0.00% | 0 | 0.00% | |||||
Sharesheldbyoverseanaturalperson | 0 | 0.00% | 0 | 0.00% | |||||
II.Unrestrictedshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% | |||||
1.RMBordinaryshares | 411,374,326 | 73.28% | 411,374,326 | 73.28% | |||||
2.Domesticallylistedforeignshares | 150,000,000 | 26.72% | 150,000,000 | 26.72% | |||||
3.Oversealistedforeignshares | 0 | 0.00% | 0 | 0.00% | |||||
4.Other | 0 | 0.00% | 0 | 0.00% |
III.Totalshares
III.Totalshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% |
Reasonsforsharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
√Applicable□Notapplicable
TheformercontrollingshareholdersState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople'sGovernmentandChangzhouInvestmentGroupCo.,Ltd.signedtheAgreementonGratuitousTransferofState-ownedSharesofChangchaiCo.,Ltd.on16August2018fortheproposaloftransferring170,845,236sharesofChangchaiCo.,Ltd.heldbytheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople'sGovernmenttoChangzhouInvestmentGroupCo.,Ltd..Theworkofgratuitoustransferof170,845,236shares(accountingfor30.43%oftheCompany'stotalequity)oftheCompanyfromState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople'sGovernmenttoChangzhouInvestmentGroupCo.,Ltd.wascompletedon22November2018.Thenatureofthesharesisunrestrictedpublicshares.Effectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable2.ChangesinRestrictedShares□Applicable√Notapplicable
II.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod□Applicable√Notapplicable2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable3.ExistingStaff-HeldShares□Applicable√Notapplicable
IIIShareholdersandActualController
1.ShareholdersandTheirShareholdingsatthePeriod-End
Unit:share
Numberofordinaryshareholders
Numberofordinaryshareholders | 49,051 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 57,411 | Numberofpreferredshareholderswithresumedvotingrights | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport | 0 | |||||||
5%orgreatershareholdersortop10shareholders | ||||||||||||||
Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
Status | Shares | |||||||||||||
ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 30.43% | 170,845,236 | 170,845,236 | ||||||||||
KGIAsiaLimited | Foreignlegalperson | 0.57% | 3,189,845 | 3,189,845 | ||||||||||
ZhangRuirong | Domesticnaturalperson | 0.32% | 1,789,800 | 1,789,800 | ||||||||||
WanPeizhong | Domesticnaturalperson | 0.29% | 1,645,800 | 1,645,800 | ||||||||||
HuangGuoliang | Domesticnaturalperson | 0.27% | 1,528,891 | 1,528,891 | ||||||||||
HuWenyong | Domesticnaturalperson | 0.27% | 1,500,066 | 1,500,066 | ||||||||||
GaoYuehua | Domestic | 0.25% | 1,390,500 | 1,390,500 |
naturalperson
naturalperson | |||||||||
LiSuinan | Domesticnaturalperson | 0.24% | 1,356,000 | 1,356,000 | |||||
XiongShunbao | Domesticnaturalperson | 0.23% | 1,282,251 | 1,282,251 | |||||
VanguardTotalInternationalStockIndexFund | Foreignlegalperson | 0.23% | 1,277,294 | 1,277,294 | |||||
Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue | N/A | ||||||||
Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||||||||
Top10unrestrictedshareholders | |||||||||
Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |||||||
Type | Shares | ||||||||
ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMBordinaryshares | 170,845,236 | ||||||
KGIAsiaLimited | 3,189,845 | Domesticallylistedforeignshares | 3,189,845 | ||||||
ZhangRuirong | 1,789,800 | RMBordinaryshares | 1,789,800 | ||||||
WanPeizhong | 1,645,800 | RMBordinaryshares | 1,645,800 | ||||||
HuangGuoliang | 1,528,891 | Domesticallylistedforeignshares | 1,528,891 | ||||||
HuWenyong | 1,500,066 | Domesticallylistedforeignshares | 1,500,066 | ||||||
GaoYuehua | 1,390,500 | RMBordinaryshares | 1,390,500 | ||||||
LiSuinan | 1,356,000 | Domesticallylistedforeignshares | 1,356,000 | ||||||
XiongShunbao | 1,282,251 | RMBordinaryshares | 1,282,251 | ||||||
VanguardTotalInternationalStockIndexFund | 1,277,294 | Domesticallylistedforeignshares | 1,277,294 | ||||||
Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellas | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegarding |
betweentop10unrestrictedpublicshareholdersandtop10shareholders
betweentop10unrestrictedpublicshareholdersandtop10shareholders | ShareholdingAlteration. |
Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading | N/A |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.□Yea√NoNosuchcasesintheReportingPeriod.2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyalocalstate-ownedlegalpersonTypeofthecontrollingshareholder:legalperson
Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
ChangzhouInvestmentGroupCo.,Ltd | ChenLimin | 20June2002 | 91320400467283980X | Propertyinvestmentandmanagement |
Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | None |
ChangeofthecontrollingshareholderintheReportingPeriod:
√Applicable□NotApplicable
Nameofnewcontrollingshareholder | ChangzhouInvestmentGroupCo.,Ltd |
Dateofchange | 22November2018 |
Indextotheappointedwebsite | http://www.cninfo.com.cn2018-031 |
Disclosuredateontheappointedwebsite | 23November2018 |
3.ActualControllerNatureoftheactualcontroller:Localinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:legalperson
Nameofactualcontroller | Legal | Dateof | Unifiedsocialcreditcode | Principalactivity |
representative/personincharge
representative/personincharge | establishment | |||
State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment | LiuYuedong | 01411025-1 | Notapplicable | |
OtherlistedcompaniesathomeorabroadcontrolledbytheactualcontrollerintheReportingPeriod | None |
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
AccordingtothedocumentofChangzhouMunicipalPeople'sGovernment(CZF[2006]No.62]),boththeCompanyandChangzhouInvestmentGroupCo.,Ltd.belongtotheenterprisestoperformtheresponsibilitiesofinvestorsundersupervisionoftheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople'sGovernmentauthorizedbyChangzhouMunicipalPeople'sGovernment.Inviewofthis,aftertheequitytransfer,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompany,andtheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople'sGovernmentisstilltheactualcontrolleroftheCompany.IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.□Applicable√Notapplicable4.Other10%orGreaterCorporateShareholders□Applicable√Notapplicable
5.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers□Applicable√Notapplicable
PartVIIPreferredShares
□Applicable√NotapplicableNopreferredsharesintheReportingPeriod.
PartVIIIDirectors,Supervisors,SeniorManagementandStaff
IChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
Name
Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Endingshareholding(share) |
ShiXinkun | ChairmanoftheBoard | Incumbent | Male | 55 | 18October2016 | 17October2019 | 0 |
HeJianguang | ViceChairmanoftheBoard | Former | Male | 55 | 18October2016 | 29January2019 | 0 |
ZhangXin | Director,GeneralManager | Incumbent | Male | 53 | 18October2016 | 17October2019 | 0 |
ShiJianchun | Director,Vice-generalManager | Incumbent | Male | 57 | 18October2016 | 17October2019 | 0 |
XuQian | Director | Former | Female | 56 | 18October2016 | 17December2018 | 0 |
LinTian | Director | Incumbent | Male | 56 | 17December2018 | 17October2019 | 0 |
ZhangQiong | Director | Incumbent | Female | 61 | 18October2016 | 17October2019 | 0 |
LiMinghui | Independentdirector | Incumbent | Male | 45 | 18October2016 | 17October2019 | 0 |
JiaBin | Independentdirector | Incumbent | Male | 41 | 18October2016 | 17October2019 | 0 |
FengGenfu | Independentdirector | Incumbent | Male | 62 | 18October2016 | 17October2019 | 0 |
YinLihou | Vice-generalManager | Incumbent | Male | 55 | 18October2016 | 17October2019 | 0 |
XuYi | Vice-generalManager | Incumbent | Male | 55 | 18October2016 | 17October2019 | 0 |
LiuXiaoyun | Vice-generalManager | Incumbent | Male | 57 | 18October2016 | 17October2019 | 0 |
WeiJinxiang
WeiJinxiang | Vice-generalManager | Incumbent | Male | 56 | 18October2016 | 17October2019 | 0 |
NiMingliang | ChairmanoftheSupervisor | Incumbent | Male | 52 | 18October2016 | 17October2019 | 0 |
ZhuMin | Supervisor | Incumbent | Male | 55 | 18October2016 | 17October2019 | 0 |
XieGuozhong | Supervisor | Incumbent | Male | 50 | 18October2016 | 17October2019 | 0 |
LuZhonggui | Supervisor | Incumbent | Male | 52 | 18October2016 | 17October2019 | 0 |
LiuYi | Supervisor | Incumbent | Male | 50 | 18October2016 | 17October2019 | 0 |
HeJianjiang | SecretaryoftheBoard | Incumbent | Male | 40 | 18October2016 | 17October2019 | 0 |
Total | -- | -- | -- | -- | -- | -- | 0 |
IIChangeofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
HeJianguang | ViceChairmanoftheBoard | Left | 29January2019 | Jobtransfer |
XuQian | Director | Left | 17December2018 | Changesinshareholder |
LinTian | Director | Appointed | 17December2018 | Changesinshareholder |
IIIBiographicalInformation
Professionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
ShiXinkun:Heactedasvice-presidentofChangzhouInvestmentGroupCo.,Ltd.Now,heistheChairmanoftheBoardandPartySecretaryinourcompany.
ZhangXin:HesuccessivelytookthepostsofSalesManager,GeneralManagerAssistant,andvice-generalmanagerinourcompany.Now,heactsasDirector,GeneralManager,anddeputyPartySecretaryofourcompany.
ShiJianchun:HesuccessivelyactedasPartySecretary,Director,Vice-generalManagerandSecretaryoftheBoardoftheCompany.NowheistheDirector,Vice-generalManagerandChairmanoftheBoardofHoushengInvestmentCo.,Ltd.
LinTian:HesuccessivelyworkedasdeputydirectorofenterprisedevelopmentDept.,GMofinvestmentmanagementDept.IIandI,assistantpresidentinChangzhouInvestmentGroupCo.,Ltd.Nowheisthevicepresident,directorofChangzhouInvestmentGroupCo.,Ltd.,andthedirectoroftheCompany.
ZhangQiong:ShesuccessivelyactedasLecturerandAssociateProfessorinDepartmentofLawofAnhuiUniversity,DeputyDirectorofIntellectualPropertyOfficeandDirectorofLegalAffairsOfficeinShenzhenHuaweiTechnologiesCo.,Ltd,SeniorManager,AssistantSecretaryGeneralofShenzhenInnovationInvestmentGroupLtd,Director,GeneralManager,andconsultantofAnhuiHongtuVentureCapitalCo.,Ltd.Now,sheworksasthesupervisorofSynergeticFundsManagementLimited,andthedirectoroftheCompany.
FengGenfu:heheldthepostofDeanofInstituteofEconomicsandFinanceinXi’anJiaotongUniversity.Now,heisProfessorandDoctoralAdvisorofInstituteofEconomicsandFinanceinXi’anJiaotongUniversity,IndependentDirectorofDatangInternationalPowerGenerationCo.,Ltd.,andChinaSecuritiesCo.,Ltd,andtheindependentdirectoroftheCompany.
LiMinghui:HeactedasLecturerandAssociateProfessorofSchoolofAccountinginXiamenUniversity,AssociateProfessorandProfessorofSchoolofAccountinginNanjingUniversityBusinessSchool.NowheistheDoctoralSupervisorofSchoolofAccountinginNanjingUniversityBusinessSchool,independentdirectorofBaoshengScience&TechnologyInnovationCo.,Ltd,NanjingSecuritiesCo.,Ltd,andJiangsuFastenCo.,Ltd.,andindependentdirectoroftheCompany.
JiaBin:HesuccessivelyactedastheDeputyDirectorofNo.1ResearchofficeinTianjinResearchInstituteofInternalCombustionEngine,nowheactsastheDirectorofNo.1ResearchofficeinTianjinResearchInstituteofInternalCombustionEngineandSecretary-generalofCICEIASmallGasolineEngineBranch,andindependentdirectoroftheCompany.
YinLihou:HeworkedasMinisterofHumanResourcesDepartmentandGeneralManagerAssistant.NowheactsasDeputyGeneralManageroftheCompany,andtheChairmanoftheBoardofChangchaiRobin.
XuYi:HesuccessivelytookthepostsofDirectorofTechnicalCenterandGeneralManagerAssistant.NowheisVice-generalManageroftheCompany.
LiuXiaoyun:HesuccessivelyactedasMulti-cylinderEngineFactoryDirector,MinisterofPurchaseDepartment,andGeneralManagerAssistantintheCompany.NowheactsasDeputyGeneralManageroftheCompany.
WeiJinxiang:HesuccessivelyheldthepostsofDepartmentDirectorofQualityAssuranceDepartment,GeneralManagerAssistantoftheCompany.NowheactsasDeputyGeneralManageroftheCompany,andthechairmanofChangchaiWanzhou,ChangchaiBenniu,andHoushengAgriculturalEquipment.
NiMingliang:NowheactsasDeputyPartySecretary,SecretaryofCommission,ChairmanofLaborUnionandChairmanoftheSupervisory.
ZhuMin:NowheactsasDeputySectionChiefandPrincipalStaffMemberofChangzhouSASACPropertyRights,andSectionSupervisorofSupervisory.,andsupervisoroftheCompany.
XieGuozhong:NowheactsasGeneralManagerAssistantoftheCompany,GeneralManagerandSecretaryofPartyGeneralBranchoftheSalesCompany,andSupervisoroftheCompanyandDirectorofHoushengAgricultureEquipment.
LuZhonggui:NowheactsasMinisterofpoliticalDepartmentoftheCompany,OfficeDirector,SecretaryofOrganPartyGeneralBranchaswellasemployeesupervisoroftheCompany.
LiuYi:HesuccessivelytookthepostsofAssistantMinisterofEnterpriseManagementDepartment.NowheactsasDeputyDirectorofAuditDepartmentandSupervisoroftheCompanyandSupervisorofChangchai
Wanzhou.
HeJianjiang:HesuccessivelyactedastheSectionMember,AssistantMinister,ViceMinisterofInvestmentandDevelopmentDepartmentinourCompany,RepresentativeofSecuritiesintheCompany.NowheisSecretaryoftheBoardandMinisterofInvestmentandDevelopmentDepartmentinourCompany,andDirectorofHoushengInvestment,ChangchaiRobin,HoushengAgriculturalEquipment,andChangchaiWanzhou.
Officesheldconcurrentlyinshareholdingentities:
Name
Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
LinTian | ChangzhouInvestmentGroupCo.,Ltd. | Vicepresident,director | December2017 | Yes |
Officesheldconcurrentlyinotherentities:
Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
ZhangQiong | SynergeticFundsManagementLimited | Supervisor | Yes | ||
LiMinghui | NanjingUniversity | DoctoralSupervisor | 1April2012 | Yes | |
BaoshengScience&TechnologyInnovationCo.,Ltd | IndependentDirector | 3December2014 | |||
NanjingSecuritiesCo.,Ltd | IndependentDirector | 12May2016 | |||
JiangsuFastenCo.,Ltd | IndependentDirector | 20April2015 | |||
JiaBin | TianjinResearchInstituteofInternalCombustionEngine | theDirectorofNo.1Researchoffice | 1March2009 | Yes | |
ChinaInternalCombustionEngineIndustryAssociation | Secretary-generalofCICEIASmallGasolineEngineBranch. | 1November2011 | |||
FengGenfu | InstituteofEconomicsandFinanceinXi’anJiaotongUniversity | ProfessorandDoctoralAdvisor | 1March2016 | Yes | |
DatangInternationalPowerGenerationCo.,Ltd. | IndependentDirector | 30June2016 | |||
ChinaSecuritiesCo.,Ltd. | IndependentDirector | 15May2015 |
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisors
andseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√Notapplicable
IVRemunerationofDirectors,SupervisorsandSeniorManagement
Decision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
In2018,themonthlysalariesofdirectors,supervisorsandseniorexecutivesintheCompanywereinlinewiththestipulationsofrelevantsalarymanagementandgradestandards,andthebenefitsoftheCompanyandassessmentresults.TheDirectorLinTianobtainedsalariesinshareholders'entities.
Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
Name
Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
ShiXinkun | ChairmanoftheBoard | Male | 55 | Incumbent | 50.98 | No |
HeJianguang | ViceChairmanoftheBoard | Male | 55 | Former | 50.98 | No |
ZhangXin | Director,GeneralManager | Male | 53 | Incumbent | 50.98 | No |
ShiJianchun | Director,Vice-generalManager | Male | 57 | Incumbent | 50.98 | No |
XuQian | Director | Female | 56 | Former | 0 | Yes |
LinTian | Director | Male | 56 | Incumbent | 0 | Yes |
ZhangQiong | Director | Female | 61 | Incumbent | 0 | No |
LiMinghui | Independentdirector | Male | 45 | Incumbent | 5 | No |
JiaBin | Independentdirector | Male | 41 | Incumbent | 5 | No |
FengGenfu | Independentdirector | Male | 62 | Incumbent | 5 | No |
YinLihou | Vice-generalManager | Male | 55 | Incumbent | 42.77 | No |
XuYi | Vice-general | Male | 55 | Incumbent | 44.55 | No |
Manager
Manager | ||||||
LiuXiaoyun | Vice-generalManager | Male | 57 | Incumbent | 43.66 | No |
WeiJinxiang | Vice-generalManager | Male | 56 | Incumbent | 42.33 | No |
NiMingliang | ChairmanoftheSupervisor | Male | 52 | Incumbent | 43.66 | No |
ZhuMin | Supervisor | Male | 55 | Incumbent | 0 | Yes |
XieGuozhong | Supervisor | Male | 50 | Incumbent | 41.22 | No |
LuZhonggui | Supervisor | Male | 52 | Incumbent | 16.65 | No |
LiuYi | Supervisor | Male | 50 | Incumbent | 15.50 | No |
HeJianjiang | SecretaryoftheBoard | Male | 40 | Incumbent | 31.96 | No |
Total | -- | -- | -- | -- | 541.22 | -- |
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
□Applicable√Notapplicable
VEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
Numberofin-serviceemployeesoftheCompanyastheparent | 2,595 |
Numberofin-serviceemployeesofmajorsubsidiaries | 591 |
Totalnumberofin-serviceemployees | 3,186 |
TotalnumberofpaidemployeesintheReportingPeriod | 3,186 |
NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
Functions | |
Function | Employees |
Production | 2,168 |
Sales | 230 |
Technical | 368 |
Financial | 41 |
Administrative
Administrative | 346 |
Other | 33 |
Total | 3,186 |
Educationalbackgrounds | |
Educationalbackground | Employees |
Juniorhighschoolgraduatesandbelow | 1,417 |
Highschoolgraduates | 918 |
Collegegraduatesandtechnicalsecondaryschoolgraduates | 556 |
Bachelors | 275 |
Mastersandabove | 20 |
Total | 3,186 |
2.EmployeeRemunerationPolicy
TheCompanyalwaysadheredtotheprincipleoftiltingtheremunerationincentivemechanismtowardsexcellenttalents,soastodisplaytherolesofvariousprofessionaltechnicians,managementstaffsandskilledbackbones.Besides,itadheredtotheprincipleofincreasingtheemployee’sincomeintegratedwithincreasinglaborproductionefficiencyandproduction&operationefficiency,soastoperfectthesalarystructureandfurtherincreaseemployees’incomesteadily.3.EmployeeTrainingPlans
TheCompanyestablishedtheManagementRulesontheEducation&TrainingforEmployees,aimingtoenhanceemployees’qualityandtryitsbesttocultivateateamoffaithfulandhighlyprofessionaltalents.Besides,itinnovatedthetrainingmechanism,optimizedthetrainingenvironment,andreinforcedtoencourageemployeestoattendvarioustraining,soastoinspiretheemployees’potentialtothemaximumextentandfurtherpromotethesustainabledevelopmentoftheCompany.4.LaborOutsourcing□Applicable√Notapplicable
PartIXCorporateGovernance
IGeneralInformationofCorporateGovernance
IntheReportingPeriod,theCompanywasstrictlyinlinewithlaws,statutessuchasCompanyLaw,SecuritiesLaws,CodeofCorporateGovernanceofListedCompanies,GuideOpiniononEstablishmentofIndependentDirectorSystembyListedCompaniesandGuidelinesonInternalControlsofListedCompaniesandsoon,continuouslyperfectedcorporategovernance,establishedandaccomplishedinternalmanagementandcontrolsystem,consistentlyanddeeplyputforwardcorporategovernanceactivities,soastofurthernormalizedoperationoftheCompany,raisingcorporategovernancelevel,layingaguardforsteadyandhealthydevelopmentoftheCompany,protectlegalrightsandinterestsoftheCompanyandallshareholders.
TheCompanypromulgatedorrevisedaseriesofinternalcontrolsystemthroughallaspectsofnormaloperationandmanagementactivitiesinaccordancewitheachnationallawsandregulations,characteristicsoftheindustry,operationandself-managingbusiness,andimproveditcontinuously,andfinallyformedanormativemanagementsystem.Andformulatedaseriesofmanagementsystem,processandstandardcoveredeachoperationlinkandlevelofthefinancialassetscontrol,humanresourcesmanagement,qualityenvironmentmanagementandinternalauditsupervisoretc.,whichensuredalltheworkhadrulestofollow.IndicatebytickmarketwhetherthereisanymaterialincompliancewiththeregulatorydocumentsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.□Yes√NoNosuchcasesintheReportingPeriod.
IITheCompany’sIndependencefromItsControllingShareholderinBusiness,Personnel,Asset,OrganizationandFinancialAffairs
TheCompanywastotallyindependentfromthecontrollingshareholderChangzhouInvestmentGroupCo.,Ltdintermsofassets,business,personnel,organizationandfinancing,withindependent&completebusinessandcapabilitytooperateindependently.
IIIHorizontalCompetition
□Applicable√Notapplicable
IVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
Meeting
Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
The2017AnnualGeneralMeeting | AnnualGeneralMeeting | 0.03% | 17May2018 | 18May2018 | 2018-014 |
The1
st
ExtraordinaryGeneralMeetingof2018
The1stExtraordinaryGeneralMeetingof2018 | ExtraordinaryGeneralMeeting | 0.02% | 17December2018 | 18December2018 | 2018-044 |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights□Applicable√Notapplicable
VPerformanceofDutybyIndependentDirectorsintheReportingPeriod
1.AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
Attendanceofindependentdirectorsinboardmeetings | ||||||
Independentdirector | DuepresenceinthisReportingPeriod(times) | Presenceonsite(times) | Presencebytelecommunication(times) | Presencethroughaproxy(times) | Absence(times) | Absentfortwoconsecutivetimes |
LiMinghui | 8 | 3 | 5 | 0 | 0 | No |
FengGenfu | 8 | 2 | 5 | 1 | 0 | No |
JiaBin | 8 | 2 | 5 | 1 | 0 | No |
Attendanceofindependentdirectorsinmeetingsofshareholdersasnon-votingdelegates(times) | 2 |
Whyanyindependentdirectorfailedtoattendtwoconsecutiveboardmeetings:
Notapplicable.2.ObjectionsRaisedbyIndependentDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranyindependentdirectorsraisedanyobjectionsonanymatteroftheCompany.□Yes√NoNosuchcasesintheReportingPeriod.3.OtherInformationaboutthePerformanceofDutybyIndependentDirectorsIndicatebytickmarkwhetheranysuggestionsfromindependentdirectorswereadoptedbytheCompany.√Yes□NoSuggestionsfromindependentdirectorsadoptedornotadoptedbytheCompany:
TheindependentdirectorsoftheCompanyinlinewiththelaw,rules,normativedocumentsandobligationsgivenbytheCompanyoftheCompanylaw,ArticleofAssociationsandIndependentDirectorsWorkRules,comprehensivelyfocusedonthedevelopmentandoperationoftheCompany,activelyattendedthegeneralmeetingofshareholderandmeetingofboardofdirectors,andgivenindependentopinionsforthesignificant
eventsoftheCompany,andeffectivelymaintainedtheprofitsoftheCompanyandalltheshareholders.TheCompanyactivelylistenedtothesuggestionsfromtheindependentdirectorsuponthesignificanteventsandadoptedthem.
VIPerformanceofDutybySpecializedCommitteesundertheBoardintheReportingPeriod
1.SummaryReportonResponsibilityPerformanceoftheAuditCommitteeundertheBoardofDirectors:
DuringtheReportingPeriod,theAuditCommitteeundertheBoardofDirectorsperformeditsdutyaccordingtothediligentandresponsibleprinciple,basedonrelevantregulationssuchastheCompanyLaw,theGuidelinesforCorporateGovernanceofListedCompanies,theArticlesofAssociationaswellasprovisionsintheEnforcementRegulationoftheAuditCommitteeundertheBoardofDirectoroftheCompany.
(1)MajorworkofAuditCommitteeinReportingPeriod:
1)PeriodicallyexaminedtheworkingplanandexecutionofinnercontroloftheCompany;
2)CommunicatedfullywiththeCPAsfirmonplanandcontentofaudit;
3)UrgedtheCPAsfirmtosummitreportasscheduled;
4)TheAuditCommitteereviewedthefinancialstatementsoftheCompanybeforetheauditandaftertheissuanceofpreliminaryopinionbytheCPAsfirm.AfteritcommunicatedwiththeCPAsfirmonsomeimportantitemsaswellasmajoraccountingestimationitems,auditadjustmentitemsandimportantaccountingpolicieswhichwerelikelytohavepotentialinfluenceonthefinancialstatements,itconsideredthatthefinancialstatementsreflectedtheoverallsituationoftheCompanyauthentically,accuratelyandcompletely.
5)SubmittedthesummaryreportonannualauditoftheCompanyconductedbytheCPAsfirmtotheBoardofDirectors;
6)AdvisedtocontinuetheappointmentofJiangsuGongzhengCertifiedPublicAccountantsCo.,LtdastheauditinstitutionoftheCompanyin2019.
(2)WrittenopinionsonfinancialstatementsoftheCompanyissuedbytheAuditCommittee
1)On22March2019,theAuditCommitteetheAuditCommitteeexaminedthefinancialstatementsoftheCompanyafterthecertifiedpublicaccountantshadissuedthepreliminaryopiniononthestatements,andissuedawrittenopinionasfollows:ThefinancialstatementsoftheCompanywerepreparedinaccordancewiththeNewAccountingStandardsforEnterprisesandrelevantfinancialrulesoftheCompany,andfaithfullyreflectedthefinancialpositionoftheCompany,aswellasthebusinessresultsandcashflowsin2018inallmaterialaspects.
2)Withregardtotheauditedfinancialstatements2018,on9April2019,theAuditCommitteemadethefollowingresolution:theAuditCommitteereviewedthefinancialstatements2018auditedbyauditors,andbelievedthatthesaidfinancialstatementsfaithfullyreflectedthefinancialpositionoftheCompanyasat31December2018,aswellasthebusinessresultsandcashflowsin2018inallmaterialaspects.ItagreedtosubmitthestatementstotheBoardofDirectorsforexaminationandapproval.
(3)SummaryreportontheauditworkconductedbytheCPAsfirmin2018:
AccordingtotheannualauditplanjointlyformulatedbytheAuditCommitteeandJiangsuGongzhengTianyeCertifiedPublicAccountantsCo.,Ltd,auditorscommunicatedfullywiththemanagementpersonneloftheCompanyandmembersoftheAuditCommitteeontheconsolidationoffinancialstatements,accountingadjustment,accountingpolicyandotheraccountingworkneededtobeimproved,whichhelpedbothpartiesacquireadeeperunderstandingabouttheoperation,financialprocessandimplementationoftheNewAccountingStandardsforBusinessEnterprisesintheCompany.Withsuchunderstanding,theannualauditaccountantswouldmakemorematurejudgmenttoissueafairauditconclusion.
TheAuditCommitteeheldthattheCPAsfirmconductedtheauditstrictlyinaccordancewithprovisions
stipulatedintheIndependentAuditingStandardsforCPAsofthePRC.Thetimeofauditwassufficient,andtheauditorswithexcellentabilitytopracticeweredeployedreasonably.Theissuedauditor’sreportfullyreflectedthefinancialpositionoftheCompanyasat31December2018,aswellasthebusinessresultsandcashflowsin2018,andtheauditconclusionwasinlinewiththeactualsituationoftheCompany.
(4)ResolutionletteronrenewingtheemploymentoftheCPAsfirm:
TheAuditCommitteeconvenedameetingon9April2019toreviewthematterconcerningtheemploymentofaCPAsfirmfortheauditin2019,andthereviewopinionwasasfollows:JiangsuGongzhengTianyeCertifiedPublicAccountantsCo.,LtdhadaccomplishedtheauditoftheCompany2018,andtheauditor’sreportreflectedtheactualfinancialstatusoftheCompanyin2018objectivelyandfairly.
TheAuditCommitteewassatisfiedwiththeauditconductedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCo.,LtdanddecidedtocontinuetoengageitastheauditinstitutionoftheCompanyin2019.
Thesaidproposalwasagreedtobesubmittedtothe17
th
Meetingofthe8
th
BoardofDirectorsforreview.2.SummaryReportonResponsibilityPerformanceofRemuneration&AppraisalCommitteeundertheBoardofDirectors:
TheRemuneration&AppraisalCommitteeundertheBoardofDirectorswascomposedof3Directors,including2IndependentDirectorsand1InnerDirector.AndoneoftheIndependentDirectorsassumedthepositionofChairmanoftheCommittee.
IntheReportingPeriod,theRemuneration&AppraisalCommitteeraisedtheproposalonimplementingtheappraisalofseniorexecutivesin2018,basedonthefulfillmentofthemainfinancialindicatorsandoperationtargetsin2018,whichweredeterminedintheContractforAppraisalofSeniorExecutivesin2018.
IntheReportingPeriod,basedonrelevantregulationsandrules,theRemuneration&AppraisalCommitteeexaminedtheremunerationoftheCompany’sseniorexecutivesin2018andissuedopinionsasfollows:
TheRemuneration&AppraisalCommitteeheldthat,theremunerationoftheCompany’sseniorexecutivesin2018wasinaccordancewithprovisionsintheContractforAppraisalofSeniorExecutivesin2018,aswellasthelaws,regulationsandrulesoftheCompany.
VIIPerformanceofDutybytheSupervisoryCommittee
IndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.
VIIIAppraisalofandIncentiveforSeniorManagement
TheCompanyhasestablishedafairandobjectiveperformanceappraisalandincentiverestraintmechanismforseniormanagementstaffs.Theannualremunerationofseniormanagementstaffsconsistedofthebasicannualsalaryandperformanceappraisalbonus,andthebasicannualsalarywasdistributedmonthlywithacertainproportion,whiletheperformanceappraisalbonuswasdistributedafterbeingappraisedaccordingtotheappraisalschemeforseniormanagementstaffssignedbetweentheBoardofDirectorsandthemanagersforeachyear.
IXInternalControl
1.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod□Yes√No2.InternalControlSelf-EvaluationReport
Disclosuredateoftheinternalcontrolself-evaluationreport
Disclosuredateoftheinternalcontrolself-evaluationreport | 11April2019 | ||
Indextothedisclosedinternalcontrolself-evaluationreport | 2019-008 | ||
Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 100.00% | ||
Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 100.00% | ||
Identificationstandardsforinternalcontrolweaknesses | |||
Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting | |
Naturestandard | TheCompanyclassifiedthedefectsasseriousdefect,importantdefectandgeneraldefectaccordingtotheinfluencedegreefromtheinternalcontrol:(1)Seriousdefect:referstooneormultiplegroupswithcontroldefectwhichmayleadtheenterpriseseriouslydeviatesthecontroltarget;(2)Importantdefect:referstooneormultiplegroupswithcontroldefectwiththeseverityandtheeconomicresultslowerthanthegreatdefectbutmaystillleadtheenterpriseseriouslydeviatesthecontroltarget;(3)Generaldefect:referstootherdefectexceptforthegreatdefectandsignificantdefect.Naturestandards:defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)thedefectinvolveswiththemalpracticeoftheDirectors,SupervisorsandSeniorExecutives;2)revisedthedisclosedfinancialreport;3)CPAsdiscoveredthegreatmisstatementamongthecurrentfinancialstatementwhilewhichcouldnotbefoundduringtheoperatingprocessoftheinternalcontrol; | Defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)Seriouslyviolatedthenationallawsandadministrativeregulationsandthenormativedocuments;2)“threesignificantonegreat”eventhadnotbeenthroughthecollectivedecision-makingprocess;3)thesignificanteventsinvolvedwiththeproductionandoperationoftheCompanylackedofsystematiccontrolortheinstitutionalsystemwasinvalid;4)theinternalcontroloftheinformationdisclosurewasinvalid,whichledtheCompanybeopencondemnedbythesupervisiondepartment;5)theseriousdefectfromtheassessmentresultsoftheinternalcontrolhadnotbeenrevised. |
4)thesupervisionfromtheAuditCommitteeandtheinternalauditinstitutionoftheenterprisewasinvalid.
4)thesupervisionfromtheAuditCommitteeandtheinternalauditinstitutionoftheenterprisewasinvalid. | ||
Quantitativestandard | Quantitativestandards:Thequantitativestandardsofrecognizingthesignificantdegreeofthemisstatement(includingthefalsenegatives)oftheconsolidatedfinancialreportoftheCompanybasedonthedatafromthe2018consolidatedstatementswasas:Seriousdefect:misstatement≥5%oftheannualprofitsImportantdefect:2.5%oftheannualprofits≤misstatement<5%oftheannualprofitsGeneraldefect<2.5%oftheannualprofits | Refertothequantitativecriteriaoftheinternalcontroldefectofthefinancialreport,torecognizethequantitativecriteriaofthesignificantdegreeoftheinternalcontroldefectofthenon-financialreportoftheCompanyas:Seriousdefect:possiblycauseddirectlylosses≥0.1%ofthenetassetsImportantdefect:0.05%ofthenetassets≤possiblycauseddirectlylosses<0.1%ofthenetassetsGeneraldefect:possiblycauseddirectlylosses<0.05%ofthenetassets |
Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 |
XIndependentAuditor’sReportonInternalControl√Applicable□Notapplicable
Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
WebelievedthatChangchaiCompany,LimitedmaintainedeffectiveinternalcontrolofthefinancialreportinsignificantaspectsaccordingtotheBasicNormsofInternalControlandrelevantregulationson31December2018. | |
Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
Disclosuredate | 11April2019 |
Indextosuchreportdisclosed | 2019-008 |
Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.√Yes□No
PartXCorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?No.
PartXIFinancialStatements
IIndependentAuditor’sReport
Typeoftheindependentauditor’sopinion
Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
Dateofsigningthisreport | 9April2019 |
Nameoftheindependentauditor | JiangsuGongzhengTianyeCertifiedPublicAccountantsLLP |
No.oftheauditor’sreport | SugongW[2019]A405 |
Nameofthecertifiedpublicaccountants | DaiWeizhong,XuWenxiang |
TextoftheIndependentAuditor’sReport
TotheShareholdersofChangchaiCompany,Limited,
IOpinion
WehaveauditedtheaccompanyingfinancialstatementsofChangchaiCompany,Limited.(togetherwithitsconsolidatedsubsidiariesincludedintheconsolidatedfinancialstatements,the“Company”),whichcomprisetheparent’sandconsolidatedbalancesheetsasat31December2018,theparent’sandconsolidatedincomestatements,theparent’sandconsolidatedcashflowstatements,theparent’sandconsolidatedstatementsofchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.
Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionofChangchaiCompany,Limited.asat31December2018andtheconsolidatedandparentbusinessperformanceandcashflowfor2018.IIBasisforOpinion
WeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinouraudit
ofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Andkeyauditmatteridentifiedinourauditissummarizedasfollows:
(I)Recognitionofrevenue1.DescriptionoftheitemTheconsolidatedrevenueoftheCompanyin2018wasRMB2,132,902,700.Becauseofthesignificantamountoftherevenueandbeingthekeyperformanceindicator,relatedrisksofrecognitionofrevenuemayexistedaccordingtotheaccountingpolicies,soweidentifyincomerecognitionasakeyaudititem.
2.Responseforaudit(1)Knowthekeyinternalcontrolrelatedtorevenuerecognition,evaluatewhetheritsdesignandexecutionarevalidornot,andtesttheoperationeffectivenessoftherelatedinternalcontrol.
(2)Analyzeandassessthetime-pointoftransferringmajorrisksandrewardsrelatedtorecognitionofsalesrevenuethroughthesamplinginspectionofsalescontractandinterviewswithmanagement,andthenevaluatetherecognitionpoliciesofsalesrevenueoftheCompany.
(3)Checkthesupportingdocumentsrelatedtorevenuerecognition,suchassalescontracts,orderform,invoiceforsales,shippingorder,declarationforexportation,andetc.
(4)Checktheoperatingrevenuerecognizedbeforeandafterthebalancesheetdatetothesupportingdocuments,suchasshippingorder,declarationforexportation,andetcbysamplingmethodtoassesswhethertheoperatingrevenueisrecognizedwithinappropriateperiod.
(5)Implementtheconfirmationbydrawingsampletorecognizethebalanceofaccountsreceivableandtheamountofsalesrevenueaccordingtothefeaturesandnaturesofcustomertransaction.
(II)Baddebtprovisionforaccountsreceivable
1.Descriptionoftheitem
AsstatedinNotesV.2oftheFinancialStatements,asof31December2018,carryingvalueofaccountsreceivableoftheCompanyisRMB378,859,200,accountingfor10.70%ofthetotalassets.BaddebtprovisionforaccountsreceivableoftheCompanyiscalculatedbytheassessmentofaccountsreceivable’sreturnability.Theassessmentofaccountsreceivable’sreturnabilityneedslargejudgmentofthemanagement,involvingthesignificantaccountingestimationswithsignificantinfluencesonamounts.So,wetakebaddebtprovisionforaccountreceivableasakeyaudititem.
2.Responseforaudit
(1)Knowing,evaluatingandtestingtherelatedinternalcontrolofbaddebtprovisionforaccountsreceivable;(2)Re-checkingtherelatedconsiderationsandobjectiveevidencesofimpairmenttestforaccountsreceivable,payingattentiontowhetherthemanagementhasfullyrecognizedtheimpairmentofitems;
(3)Foraccountsreceivablemadebaddebtprovisionseparately,were-checkthebasisandreasonabilityfortheestimatedavailablecashflowinthefuture;
(4)Foraccountsreceivablemadebaddebtprovisionbythecreditriskscharacteristicgroup,weevaluatewhethertheratioofbaddebtprovisionconfirmedbymanagementisreasonable;
(5)Werequestforconfirmationofaccountsreceivable,andchecktheconfirmationresultwiththecarryingamount;
(6)Checkingthepaymentcollectionafterthebindingstage,andevaluatingthereasonabilityofbaddebtprovisionmadebymanagement.IVOtherInformation
TheCompany’smanagement(hereinafterreferredtoas“management”)isresponsiblefortheotherinformation.TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2017AnnualReportotherthanthefinancialstatementsandourauditor’sreportthereon.
Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.
Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.VResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatements
ThemanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VIAuditor’sResponsibilitiesforAuditofFinancialStatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefree
frommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
JiangsuGongzhengTianyeCertifiedPublicAccountantsChineseCPADaiWeizhong
(LLP)(EngagementPartner)
ChineseCPAXuWenxiangWuxi·China9April2019
IIFinancialStatements
Currencyunitforthefinancialstatementsandthenotesthereto:RMB1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
Unit:RMB
Item
Item | 31December2018 | 31December2017 |
Currentassets: | ||
Monetarycapital | 800,960,036.69 | 430,305,367.71 |
Settlementreserve | ||
Interbankloansgranted | ||
Financialassetsatfairvaluethroughprofitorloss | ||
Derivativefinancialassets | ||
Notesandaccountsreceivable | 874,229,941.58 | 1,108,415,299.12 |
Including:Notesreceivable | 495,370,782.47 | 716,404,345.57 |
Accountsreceivable | 378,859,159.11 | 392,010,953.55 |
Prepayments | 11,352,297.10 | 17,781,007.77 |
Premiumsreceivable | ||
Reinsurancereceivables | ||
Receivablereinsurancecontractreserve | ||
Otherreceivables | 9,244,584.42 | 5,794,971.22 |
Including:Interestreceivable | ||
Dividendsreceivable | ||
Financialassetspurchasedunderresaleagreements | ||
Inventories | 557,953,891.70 | 508,246,807.48 |
Assetsclassifiedasheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 34,357,608.97 | 42,540,184.05 |
Totalcurrentassets | 2,288,098,360.46 | 2,113,083,637.35 |
Non-currentassets: | ||
Loansandadvancestocustomers | ||
Available-for-salefinancialassets | 498,851,369.49 | 793,522,639.04 |
Held-to-maturityinvestments | ||
Long-termreceivables | ||
Long-termequityinvestments | 0.00 | 0.00 |
Investmentproperty
Investmentproperty | 50,656,007.63 | 52,864,348.43 |
Fixedassets | 511,250,371.37 | 560,049,970.50 |
Constructioninprogress | 89,090,384.71 | 94,581,989.06 |
Productivelivingassets | ||
Oilandgasassets | ||
Intangibleassets | 103,092,879.38 | 107,795,746.86 |
R&Dexpense | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 979,822.71 | 1,006,953.81 |
Othernon-currentassets | 0.00 | 0.00 |
Totalnon-currentassets | 1,253,920,835.29 | 1,609,821,647.70 |
Totalassets | 3,542,019,195.75 | 3,722,905,285.05 |
Currentliabilities: | ||
Short-termborrowings | 27,000,000.00 | 24,900,000.00 |
Borrowingsfromcentralbank | ||
Customerdepositsandinterbankdeposits | ||
Interbankloansobtained | ||
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notesandaccountspayable | 1,030,130,275.77 | 963,299,000.18 |
Advancesfromcustomers | 34,500,232.97 | 40,153,984.91 |
Financialassetssoldunderrepurchaseagreements | ||
Handlingchargesandcommissionspayable | ||
Payrollpayable | 50,500,592.99 | 51,247,112.66 |
Taxespayable | 7,066,085.89 | 4,017,920.78 |
Otherpayables | 199,412,250.90 | 195,985,676.91 |
Including:Interestpayable | ||
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Reinsurancepayables | ||
Insurancecontractreserve | ||
Payablesforactingtradingofsecurities | ||
Payablesforunderwritingofsecurities | ||
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale |
Currentportionofnon-currentliabilities
Currentportionofnon-currentliabilities | 18,500,000.00 | |
Othercurrentliabilities | 2,082,985.18 | 2,028,937.59 |
Totalcurrentliabilities | 1,369,192,423.70 | 1,281,632,633.03 |
Non-currentliabilities: | ||
Long-termborrowings | 2,000,000.00 | 21,500,000.00 |
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 60,992,858.46 |
Deferredincometaxliabilities | 47,971,780.36 | 92,409,779.39 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 109,900,265.20 | 174,902,637.85 |
Totalliabilities | 1,479,092,688.90 | 1,456,535,270.88 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 164,328,665.43 | 164,328,665.43 |
Less:Treasurystock | ||
Othercomprehensiveincome | 264,405,675.00 | 515,068,550.00 |
Specificreserve | 15,182,958.83 | 13,289,059.21 |
Surplusreserves | 320,133,050.15 | 313,705,210.16 |
Generalreserve | ||
Retainedearnings | 717,883,351.33 | 679,131,047.06 |
TotalequityattributabletoownersoftheCompanyastheparent | 2,043,308,026.74 | 2,246,896,857.86 |
Non-controllinginterests | 19,618,480.11 | 19,473,156.31 |
Totalowners’equity | 2,062,926,506.85 | 2,266,370,014.17 |
Totalliabilitiesandowners’equity | 3,542,019,195.75 | 3,722,905,285.05 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item
Item | 31December2018 | 31December2017 |
Currentassets: | ||
Monetarycapital | 759,404,219.72 | 366,907,287.64 |
Financialassetsatfairvaluethroughprofitorloss | ||
Derivativefinancialassets | ||
Notesandaccountsreceivable | 790,877,079.72 | 1,031,361,397.27 |
Including:Notesreceivable | 490,519,795.91 | 711,474,345.57 |
Accountsreceivable | 300,357,283.81 | 319,887,051.70 |
Prepayments | 4,768,038.11 | 9,815,561.98 |
Otherreceivables | 21,681,331.85 | 11,798,211.40 |
Including:Interestreceivable | 0.00 | 0.00 |
Dividendsreceivable | 0.00 | 0.00 |
Inventories | 437,423,195.46 | 376,814,388.82 |
Assetsclassifiedasheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 23,099,858.67 | 20,692,057.15 |
Totalcurrentassets | 2,037,253,723.53 | 1,817,388,904.26 |
Non-currentassets: | ||
Available-for-salefinancialassets | 470,940,000.00 | 785,837,500.00 |
Held-to-maturityinvestments | ||
Long-termreceivables | ||
Long-termequityinvestments | 241,752,730.03 | 231,752,730.03 |
Investmentproperty | 50,656,007.63 | 52,864,348.43 |
Fixedassets | 413,186,680.19 | 453,155,359.47 |
Constructioninprogress | 87,007,215.91 | 93,681,793.26 |
Productivelivingassets | ||
Oilandgasassets | ||
Intangibleassets | 72,184,608.63 | 75,623,219.49 |
R&Dexpense | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 930,641.19 | 934,554.06 |
Othernon-currentassets
Othernon-currentassets | ||
Totalnon-currentassets | 1,336,657,883.58 | 1,693,849,504.74 |
Totalassets | 3,373,911,607.11 | 3,511,238,409.00 |
Currentliabilities: | ||
Short-termborrowings | 10,000,000.00 | |
Financialliabilitiesatfairvaluethroughprofitorloss | ||
Derivativefinancialliabilities | ||
Notesandaccountspayable | 987,550,797.44 | 883,244,989.22 |
Advancesfromcustomers | 32,072,387.55 | 38,382,261.14 |
Payrollpayable | 43,597,759.22 | 41,401,495.39 |
Taxespayable | 2,443,767.89 | 1,373,036.64 |
Otherpayables | 185,022,961.56 | 185,981,889.23 |
Including:Interestpayable | ||
Dividendspayable | 3,243,179.97 | 3,243,179.97 |
Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
Currentportionofnon-currentliabilities | 18,500,000.00 | |
Othercurrentliabilities | ||
Totalcurrentliabilities | 1,279,187,673.66 | 1,150,383,671.62 |
Non-currentliabilities: | ||
Long-termborrowings | 19,500,000.00 | |
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Long-termpayables | ||
Long-termpayrollpayable | ||
Provisions | ||
Deferredincome | 59,928,484.84 | 60,992,858.46 |
Deferredincometaxliabilities | 46,659,825.00 | 90,894,450.00 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 106,588,309.84 | 171,387,308.46 |
Totalliabilities | 1,385,775,983.50 | 1,321,770,980.08 |
Owners’equity: | ||
Sharecapital | 561,374,326.00 | 561,374,326.00 |
Otherequityinstruments |
Including:Preferredshares
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 183,071,147.70 | 183,071,147.70 |
Less:Treasurystock | ||
Othercomprehensiveincome | 264,405,675.00 | 515,068,550.00 |
Specificreserve | 15,182,958.83 | 13,289,059.21 |
Surplusreserves | 320,133,050.15 | 313,705,210.16 |
Retainedearnings | 643,968,465.93 | 602,959,135.85 |
Totalowners’equity | 1,988,135,623.61 | 2,189,467,428.92 |
Totalliabilitiesandowners’equity | 3,373,911,607.11 | 3,511,238,409.00 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
Item
Item | 2018 | 2017 |
1.Revenue | 2,132,902,718.60 | 2,423,058,958.29 |
Including:Operatingrevenue | 2,132,902,718.60 | 2,423,058,958.29 |
Interestincome | ||
Premiumincome | ||
Handlingchargeandcommissionincome | ||
2.Costsandexpenses | 2,177,879,797.73 | 2,412,300,893.20 |
Including:Costofsales | 1,813,444,585.66 | 2,072,877,976.77 |
Interestexpense | ||
Handlingchargeandcommissionexpense | ||
Surrenders | ||
Netclaimspaid | ||
Netamountprovidedasinsurancecontractreserve | ||
Expenditureonpolicydividends | ||
Reinsurancepremiumexpense | ||
Taxesandsurcharges | 12,532,729.68 | 13,904,298.45 |
Sellingexpense | 126,997,066.87 | 102,297,713.37 |
Administrativeexpense | 116,027,838.96 | 107,835,619.11 |
R&Dexpense | 72,182,840.78 | 76,715,296.15 |
Financecosts | -903,762.30 | -2,290,794.39 |
Including:Interestexpense | 4,553,608.46 | 2,119,903.67 |
Interestincome | 4,665,445.23 | 7,613,535.50 |
Assetimpairmentloss | 37,598,498.08 | 40,960,783.74 |
Add:Otherincome | 6,291,685.65 | 8,456,560.85 |
Investmentincome(“-”forloss) | 113,270,824.83 | 13,115,817.10 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Gainonchangesinfairvalue(“-”forloss) | ||
Foreignexchangegain(“-”forloss) | ||
Assetdisposalincome(“-”forloss) | 662,151.89 | 1,373,236.33 |
3.Operatingprofit(“-”forloss) | 75,247,583.24 | 33,703,679.37 |
Add:Non-operatingincome | 1,938,995.76 | 22,907,878.36 |
Less:Non-operatingexpense
Less:Non-operatingexpense | 1,474,218.49 | 7,792,658.00 |
4.Profitbeforetax(“-”forloss) | 75,712,360.51 | 48,818,899.73 |
Less:Incometaxexpense | 13,545,662.67 | 1,681,667.26 |
5.Netprofit(“-”fornetloss) | 62,166,697.84 | 47,137,232.47 |
5.1Netprofitfromcontinuingoperations(“-”fornetloss) | 62,166,697.84 | 47,137,232.47 |
5.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
NetprofitattributabletoownersoftheCompanyastheparent | 62,021,374.04 | 46,431,302.73 |
Netprofitattributabletonon-controllinginterests | 145,323.80 | 705,929.74 |
6.Othercomprehensiveincome,netoftax | -250,662,875.00 | -107,979,750.00 |
AttributabletoownersoftheCompanyastheparent | -250,662,875.00 | -107,979,750.00 |
6.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
6.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
6.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||
6.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss | -250,662,875.00 | -107,979,750.00 |
6.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | ||
6.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | -250,662,875.00 | -107,979,750.00 |
6.2.3Gain/Lossarisingfromreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
6.2.4Effectivegain/lossoncashflowhedges | ||
6.2.5Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | ||
6.2.6Other | ||
Attributabletonon-controllinginterests | ||
7.Totalcomprehensiveincome | -188,496,177.16 | -60,842,517.53 |
AttributabletoownersoftheCompanyastheparent | -188,641,500.96 | -61,548,447.27 |
Attributabletonon-controllinginterests | 145,323.80 | 705,929.74 |
8.Earningspershare | ||
8.1Basicearningspershare | 0.11 | 0.08 |
8.2Dilutedearningspershare | 0.11 | 0.08 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
Item
Item | 2018 | 2017 |
1.Operatingrevenue | 1,968,727,065.36 | 2,235,805,990.99 |
Less:Costofsales | 1,689,706,860.63 | 1,931,679,323.68 |
Taxesandsurcharges | 9,550,011.21 | 11,611,908.48 |
Sellingexpense | 113,219,756.42 | 91,518,856.80 |
Administrativeexpense | 99,399,032.15 | 90,013,191.80 |
R&Dexpense | 70,981,785.06 | 76,589,354.80 |
Financecosts | -2,269,683.27 | -5,269,152.69 |
Including:Interestexpense | 1,150,062.50 | 243,305.56 |
Interestincome | 4,320,565.70 | 7,398,676.24 |
Assetimpairmentloss | 33,088,706.77 | 36,843,390.33 |
Add:Otherincome | 6,156,851.75 | 7,921,898.35 |
Investmentincome(“-”forloss) | 112,464,720.49 | 10,709,750.99 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Gainonchangesinfairvalue(“-”forloss) | ||
Assetdisposalincome(“-”forloss) | 577,265.23 | 1,184,146.48 |
2.Operatingprofit(“-”forloss) | 74,249,433.86 | 22,634,913.61 |
Add:Non-operatingincome | 1,231,701.78 | 1,324,306.44 |
Less:Non-operatingexpense | 1,442,817.89 | 6,979,953.83 |
3.Profitbeforetax(“-”forloss) | 74,038,317.75 | 16,979,266.22 |
Less:Incometaxexpense | 9,759,917.90 | -1,270,346.56 |
4.Netprofit(“-”fornetloss) | 64,278,399.85 | 18,249,612.78 |
4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 64,278,399.85 | 18,249,612.78 |
4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
5.Othercomprehensiveincome,netoftax | -250,662,875.00 | -107,979,750.00 |
5.1Itemsthatwillnotbereclassifiedtoprofitorloss | ||
5.1.1Changesincausedbyremeasurementsondefinedbenefitpensionschemes | ||
5.1.2Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||
5.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss | -250,662,875.00 | -107,979,750.00 |
5.2.1Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod |
5.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets
5.2.2Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | -250,662,875.00 | -107,979,750.00 |
5.2.3Gain/Lossarisingfromreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
5.2.4Effectivegain/lossoncashflowhedges | ||
5.2.5Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | ||
5.2.6Other | ||
6.Totalcomprehensiveincome | -186,384,475.15 | -89,730,137.22 |
7.Earningspershare | ||
7.1Basicearningspershare | ||
7.2Dilutedearningspershare |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
Item
Item | 2018 | 2017 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 2,425,197,716.22 | 2,340,135,466.05 |
Netincreaseincustomerdepositsandinterbankdeposits | ||
Netincreaseinborrowingsfromcentralbank | ||
Netincreaseinloansfromotherfinancialinstitutions | ||
Premiumsreceivedonoriginalinsurancecontracts | ||
Netproceedsfromreinsurance | ||
Netincreaseindepositsandinvestmentsofpolicyholders | ||
Netincreaseinproceedsfromdisposaloffinancialassetsatfairvaluethroughprofitorloss | ||
Interest,handlingchargesandcommissionsreceived | ||
Netincreaseininterbankloansobtained | ||
Netincreaseinproceedsfromrepurchasetransactions | ||
Taxrebates | 57,089,558.17 | 45,280,119.53 |
Cashgeneratedfromotheroperatingactivities | 12,322,331.45 | 20,703,603.65 |
Subtotalofcashgeneratedfromoperatingactivities | 2,494,609,605.84 | 2,406,119,189.23 |
Paymentsforcommoditiesandservices | 1,748,699,087.54 | 2,068,207,850.42 |
Netincreaseinloansandadvancestocustomers | ||
Netincreaseindepositsincentralbankandininterbankloansgranted | ||
Paymentsforclaimsonoriginalinsurancecontracts | ||
Interest,handlingchargesandcommissionspaid | ||
Policydividendspaid | ||
Cashpaidtoandforemployees | 321,746,157.63 | 332,974,762.36 |
Taxespaid | 33,740,896.03 | 38,505,023.00 |
Cashusedinotheroperatingactivities | 116,603,937.75 | 88,100,832.84 |
Subtotalofcashusedinoperatingactivities | 2,220,790,078.95 | 2,527,788,468.62 |
Netcashgeneratedfrom/usedinoperatingactivities | 273,819,526.89 | -121,669,279.39 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | 43,589,736.75 | 8,000,000.00 |
Investmentincome | 113,425,932.70 | 11,364,613.67 |
Netproceedsfromdisposaloffixedassets,intangibleassets | 979,093.38 | 835,345.89 |
andotherlong-livedassets
andotherlong-livedassets | ||
Netproceedsfromdisposalofsubsidiariesorotherbusinessunits | ||
Cashgeneratedfromotherinvestingactivities | 1,000,000.00 | |
Subtotalofcashgeneratedfrominvestingactivities | 157,994,762.83 | 21,199,959.56 |
Paymentsforacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 18,482,660.75 | 57,507,086.97 |
Paymentsforinvestments | 33,293,147.06 | 113,985,139.04 |
Netincreaseinpledgedloansgranted | ||
Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits | 4,272,350.99 | |
Cashusedinotherinvestingactivities | ||
Subtotalofcashusedininvestingactivities | 51,775,807.81 | 175,764,577.00 |
Netcashgeneratedfrom/usedininvestingactivities | 106,218,955.02 | -154,564,617.44 |
3.Cashflowsfromfinancingactivities: | ||
Capitalcontributionsreceived | ||
Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
Increaseinborrowingsobtained | 40,700,000.00 | 51,900,000.00 |
Netproceedsfromissuanceofbonds | ||
Cashgeneratedfromotherfinancingactivities | ||
Subtotalofcashgeneratedfromfinancingactivities | 40,700,000.00 | 51,900,000.00 |
Repaymentofborrowings | 39,600,000.00 | 15,500,000.00 |
Paymentsforinterestanddividends | 19,322,496.75 | 18,180,577.83 |
Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
Cashusedinotherfinancingactivities | ||
Subtotalofcashusedinfinancingactivities | 58,922,496.75 | 33,680,577.83 |
Netcashgeneratedfrom/usedinfinancingactivities | -18,222,496.75 | 18,219,422.17 |
4.Effectofforeignexchangeratechangesoncashandcashequivalents | ||
5.Netincreaseincashandcashequivalents | 361,815,985.16 | -258,014,474.66 |
Add:Cashandcashequivalents,beginningoftheperiod | 325,263,654.43 | 583,278,129.09 |
6.Cashandcashequivalents,endoftheperiod | 687,079,639.59 | 325,263,654.43 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
Item
Item | 2018 | 2017 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 2,373,022,957.25 | 2,272,196,372.83 |
Taxrebates | 40,981,398.83 | 29,635,115.60 |
Cashgeneratedfromotheroperatingactivities | 10,293,262.16 | 16,533,875.78 |
Subtotalofcashgeneratedfromoperatingactivities | 2,424,297,618.24 | 2,318,365,364.21 |
Paymentsforcommoditiesandservices | 1,748,150,322.59 | 2,059,024,833.30 |
Cashpaidtoandforemployees | 268,331,025.24 | 277,811,436.98 |
Taxespaid | 21,464,799.34 | 28,251,524.17 |
Cashusedinotheroperatingactivities | 114,428,231.52 | 81,615,494.68 |
Subtotalofcashusedinoperatingactivities | 2,152,374,378.69 | 2,446,703,289.13 |
Netcashgeneratedfrom/usedinoperatingactivities | 271,923,239.55 | -128,337,924.92 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | 30,000,000.00 | |
Investmentincome | 112,621,521.91 | 10,709,750.99 |
Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-livedassets | 867,615.38 | 131,366.89 |
Netproceedsfromdisposalofsubsidiariesorotherbusinessunits | ||
Cashgeneratedfromotherinvestingactivities | 1,000,000.00 | |
Subtotalofcashgeneratedfrominvestingactivities | 143,489,137.29 | 11,841,117.88 |
Paymentsforacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 16,631,342.48 | 45,733,282.92 |
Paymentsforinvestments | 10,000,000.00 | 126,280,000.00 |
Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits | ||
Cashusedinotherinvestingactivities | ||
Subtotalofcashusedininvestingactivities | 26,631,342.48 | 172,013,282.92 |
Netcashgeneratedfrom/usedininvestingactivities | 116,857,794.81 | -160,172,165.04 |
3.Cashflowsfromfinancingactivities: | ||
Capitalcontributionsreceived | ||
Increaseinborrowingsobtained | 10,000,000.00 | 20,000,000.00 |
Netproceedsfromissuanceofbonds | ||
Cashgeneratedfromotherfinancingactivities |
Subtotalofcashgeneratedfromfinancingactivities
Subtotalofcashgeneratedfromfinancingactivities | 10,000,000.00 | 20,000,000.00 |
Repaymentofborrowings | 1,000,000.00 | 500,000.00 |
Paymentsforinterestanddividends | 17,991,292.28 | 17,084,535.34 |
Cashusedinotherfinancingactivities | ||
Sub-totalofcashusedinfinancingactivities | 18,991,292.28 | 17,584,535.34 |
Netcashgeneratedfrom/usedinfinancingactivities | -8,991,292.28 | 2,415,464.66 |
4.Effectofforeignexchangeratechangesoncashandcashequivalents | ||
5.Netincreaseincashandcashequivalents | 379,789,742.08 | -286,094,625.30 |
Add:Cashandcashequivalents,beginningoftheperiod | 272,064,464.71 | 558,159,090.01 |
6.Cashandcashequivalents,endoftheperiod | 651,854,206.79 | 272,064,464.71 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’Equity2018
Unit:RMB
Item
Item | 2018 | ||||||||||||
EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | |||||
Preferredshares | Perpetualbonds | Other | |||||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 19,473,156.31 | 2,266,370,014.17 | |||||
Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||
Otheradjustments | |||||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 19,473,156.31 | 2,266,370,014.17 | |||||
3.Increase/decreaseintheperiod(“-”for | -250,662 | 1,893,89 | 6,427,83 | 38,752,3 | 145,323. | -203,443 |
decrease)
decrease) | ,875.00 | 9.62 | 9.99 | 04.27 | 80 | ,507.32 | ||
3.1Totalcomprehensiveincome | -142,712,875.00 | 62,021,374.04 | 145,323.80 | -80,546,177.16 | ||||
3.2Capitalincreasedandreducedbyowners | ||||||||
3.2.1Ordinarysharesincreasedbyshareholders | ||||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||
3.2.4Other | ||||||||
3.3Profitdistribution | 6,427,839.99 | -23,269,069.77 | -16,841,229.78 | |||||
3.3.1Appropriationtosurplusreserves | 6,427,839.99 | -6,427,839.99 | ||||||
3.3.2Appropriationtogeneralreserve | ||||||||
3.3.3Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | ||||||
3.3.4Other | ||||||||
3.4Transferswithinowners’equity | ||||||||
3.4.1Increasein |
capital(orsharecapital)fromcapitalreserves
capital(orsharecapital)fromcapitalreserves | |||||||||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||
3.4.3Lossoffsetbysurplusreserves | |||||||||||
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||
3.4.5Other | |||||||||||
3.5Specificreserve | 1,893,899.62 | 1,893,899.62 | |||||||||
3.5.1Increaseintheperiod | 4,135,805.99 | 4,135,805.99 | |||||||||
3.5.2Usedintheperiod | 2,241,906.37 | 2,241,906.37 | |||||||||
3.6Other | -107,950,000.00 | -107,950,000.00 | |||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 19,618,480.11 | 2,062,926,506.85 |
2017
Unit:RMB
Item
Item | 2017 | ||||||||||||
EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | |||||
Preferredshares | Perpetualbonds | Other | |||||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 651,365,935.39 | 18,767,226.57 | 2,342,480,119.49 | |||||
Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||
Otheradjustments | |||||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 651,365,935.39 | 18,767,226.57 | 2,342,480,119.49 | |||||
3.Increase/decreaseintheperiod(“-”fordecrease) | -107,979,750.00 | 1,573,641.99 | 1,824,961.28 | 27,765,111.67 | 705,929.74 | -76,110,105.32 |
3.1Totalcomprehensiveincome
3.1Totalcomprehensiveincome | -107,979,750.00 | 46,431,302.73 | 705,929.74 | -60,842,517.53 | ||||
3.2Capitalincreasedandreducedbyowners | ||||||||
3.2.1Ordinarysharesincreasedbyshareholders | ||||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||
3.2.4Other | ||||||||
3.3Profitdistribution | 1,824,961.28 | -18,666,191.06 | -16,841,229.78 | |||||
3.3.1Appropriationtosurplusreserves | 1,824,961.28 | -1,824,961.28 | ||||||
3.3.2Appropriationtogeneralreserve | ||||||||
3.3.3Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | ||||||
3.3.4Other |
3.4Transferswithinowners’equity
3.4Transferswithinowners’equity | |||||||||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||
3.4.3Lossoffsetbysurplusreserves | |||||||||||
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||||
3.4.5Other | |||||||||||
3.5Specificreserve | 1,573,641.99 | 1,573,641.99 | |||||||||
3.5.1Increaseintheperiod | 4,161,424.06 | 4,161,424.06 | |||||||||
3.5.2Usedintheperiod | 2,587,782.07 | 2,587,782.07 | |||||||||
3.6Other | |||||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 19,473,156.31 | 2,266,370,014.17 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2018
Unit:RMB
Item
Item | 2018 | ||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Totalowners’equity | |||
Preferredshares | Perpetualbonds | Other | |||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | ||||
Add:Adjustmentsforchangedaccountingpolicies | |||||||||||
Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
Otheradjustments | |||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | ||||
3.Increase/decreaseintheperiod(“-”fordecrease) | -250,662,875.00 | 1,893,899.62 | 6,427,839.99 | 41,009,330.08 | -201,331,805.31 | ||||||
3.1Totalcomprehensiveincome | -142,712,875.00 | 64,278,399.85 | -78,434,475.15 | ||||||||
3.2Capitalincreasedandreducedbyowners |
3.2.1Ordinarysharesincreasedbyowners
3.2.1Ordinarysharesincreasedbyowners | ||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||
3.2.4Other | ||||
3.3Profitdistribution | 6,427,839.99 | -23,269,069.77 | -16,841,229.78 | |
3.3.1Appropriationtosurplusreserves | 6,427,839.99 | -6,427,839.99 | ||
3.3.2Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | ||
3.3.3Other | ||||
3.4Transferswithinowners’equity | ||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||
3.4.3Lossoffsetbysurplusreserves | |||||||||
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||
3.4.5Other | |||||||||
3.5Specificreserve | 1,893,899.62 | 1,893,899.62 | |||||||
3.5.1Increaseintheperiod | 4,135,805.99 | 4,135,805.99 | |||||||
3.5.2Usedintheperiod | 2,241,906.37 | 2,241,906.37 | |||||||
3.6Other | -107,950,000.00 | -107,950,000.00 | |||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 |
2017
Unit:RMB
Item
Item | 2017 | ||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Totalowners’equity | |||
Preferredshares | Perpetualbonds | Other | |||||||||
1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 603,375,714.13 | 2,294,465,153.93 | ||||
Add:Adjustmentsforchangedaccountingpolicies | |||||||||||
Adjustmentsforcorrectionsofpreviouserrors | |||||||||||
Otheradjustments | |||||||||||
2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 623,048,300.00 | 11,715,417.22 | 311,880,248.88 | 603,375,714.13 | 2,294,465,153.93 | ||||
3.Increase/decreaseintheperiod(“-”fordecrease) | -107,979,750.00 | 1,573,641.99 | 1,824,961.28 | -416,578.28 | -104,997,725.01 | ||||||
3.1Totalcomprehensiveincome | -107,979,750.00 | 18,249,612.78 | -89,730,137.22 | ||||||||
3.2Capitalincreasedandreducedbyowners | |||||||||||
3.2.1Ordinary |
sharesincreasedbyowners
sharesincreasedbyowners | ||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||
3.2.4Other | ||||
3.3Profitdistribution | 1,824,961.28 | -18,666,191.06 | -16,841,229.78 | |
3.3.1Appropriationtosurplusreserves | 1,824,961.28 | -1,824,961.28 | ||
3.3.2Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | ||
3.3.3Other | ||||
3.4Transferswithinowners’equity | ||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||
3.4.2Increaseincapital(orshare |
capital)fromsurplusreserves
capital)fromsurplusreserves | |||||||||
3.4.3Lossoffsetbysurplusreserves | |||||||||
3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | |||||||||
3.4.5Other | |||||||||
3.5Specificreserve | 1,573,641.99 | 1,573,641.99 | |||||||
3.5.1Increaseintheperiod | 4,161,424.06 | 4,161,424.06 | |||||||
3.5.2Usedintheperiod | 2,587,782.07 | 2,587,782.07 | |||||||
3.6Other | |||||||||
4.Balancesasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 |
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.Asat31December2015,thetotalsharecapitaloftheCompanyis561,374,326.00shares,aswellasregisteredcapitalofRMB561,374,326.00,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.AndtheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.
TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.
TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproductionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelofChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combineharvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsetsandshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedintheReportingPeriod.
TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.
ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson9April2019.
TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand5subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.IV.BasisforPreparationoftheFinancialReport1.BasisforPreparation
Withthegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.
InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.2.Continuation
TheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsDoestheCompanyneedtocomplywiththedisclosurerequirementsofspecialindustry?No
Notificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthewithdrawalmethodofthebaddebtprovisionoftheaccountsreceivable(NotesIII,11),themeasurementoftheinventory(NotesIII,12)andthedepreciationofthefixedassets(NotesIII,16)etc.Asforthedetailsofthesignificantaccountingjudgmentandtheestimationsmadebythemanagementlayer,pleaserefertoNotesIII,30“Importantaccountingjudgmentandestimations”.1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriod
Thefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.3.OperatingCycle
AnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.4.CurrencyUsedinBookkeeping
RenminbiisfunctionalcurrencyoftheCompany.5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.
Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.
Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)Businesscombinationsnotunderthesamecontrol
Abusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.
Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.
Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.6.MethodsforPreparingConsolidatedFinancialStatements
TheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.
TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.
TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.
Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthe
financialstatement,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.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
TheGroupclassifiesjointarrangementsintojointoperationsandjointventures.
AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.8.RecognitionStandardforCashandCashEquivalents
IntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)Foreigncurrencybusiness
Concerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintotherecordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankofChinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchangesshallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.
Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshallbeconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedbythePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamountconvertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currencyamountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbytheforeign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleofcapitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecordedintotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.
Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currencynon-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchangegain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothegain/lossofthecurrentperiod.
(2)Translationofforeigncurrency
Theassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.10.FinancialInstruments
(1)Categoryoffinancialinstruments
TheCompanyclassifiesthefinancialassetsintofourkindssuchastradingfinancialassets,available-for-salefinancialassets,accountsreceivableandheld-to-maturityinvestmentaccordingtotheinvestmentpurposeandtheeconomynature.
TheCompanyclassifiesthefinancialliabilitiesintotwokindssuchasthefinancialliabilitiesmeasuredbyfairvaluewiththechangesincludedinthecurrentgainsandlossesandtheotherfinancialliabilitiesmeasuredbyamortizedcostaccordingtotheeconomynature.
(2)Recognitionbasisandmeasurementmethodsoffinancialinstruments
Thetradingfinancialassetsshouldbemeasuredbyfairvaluewiththechangesoffairvalueincludedinthecurrentgainsandlosses;theavailable-for-salefinancialassetsshouldbemeasuredbyfairvaluewiththechangesoffairvalueincludedintheowners’equities;andtheaccountsreceivableandtheheld-to-maturityinvestmentshouldbemeasuredbyamortizedcost.
(3)Recognitionbasisandmeasurementmethodsoffinancialinstrumentstransformation
TheCompanytransfersordeliversafinancialassettoapartyotherthantheissuerofthefinancialassetandthetransformationofthefinancialassetscouldbewholeofthefinancialassetsorapartofit,whichincludingtwomethods:
Theenterprisetransferstherighttoanotherpartyforreceivingthecashflowofthefinancialasset;
Theenterprisetransfersthefinancialassettoanotherparty,butmaintainstherighttoreceivethecashflowofthefinancialassetandundertakestheobligationtopaythecashflowitreceivestothefinalrecipient.
WheretheCompanyhastransferredapartornearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandthedifferencebetweentheconsiderationreceivedandthebookvalueofthetransferredfinancialassetsshouldberecognizedasgainsandlossesandatthesametimetransferstheaccumulativegainsorlossesfromtherecognizedfinancialassetsamongtheoriginalowners’equitiesinthegainsandlosses;ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethewholeorpartofthefinancialassetsandtheconsiderationreceivedberecognizedasfinancialliabilities.
WheretheCompanyneithertransfersnorretainsnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,anditdoesnotceaseitscontrolonthesaidfinancialasset,itrecognizestherelevantfinancialassetandliabilityaccordinglyaccordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset.
(4)De-recognitionconditionsoffinancialliabilities
Onlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.
(5)Recognitionmethodsofthefairvalueofmainfinancialassetsandfinancialliabilities
AsforthefinancialassetsheldbytheCompanyorthefinancialliabilitiesplanstoundertake,ifthereexistsactivemarket,shouldadoptthecurrentofferingpriceintheactivemarket,andasforthefinancialassetsplanstobepurchasedbytheCompanyorthefinancialliabilitiesundertook,shouldadoptthecurrentofferingintheactivemarket,andifthereisnocurrentofferingpriceoraskingprice,shouldadoptthemarketquotationoftherecenttransactionsortheadjustedmarketquotationoftherecenttransactions,exceptforthereisdefiniteevidenceindicatethemarketquotationisnotthefairvalue.
Wherethereisnoactivemarketforafinancialinstrument,theenterpriseconcernedshalladoptvalueappraisaltechniques,includingthepricesadoptedbytheparties,whoarefamiliarwiththecondition,inthelatestmarkettransactionupontheirownfreewill,thecurrentfairvalueobtainedbyreferringtootherfinancialinstrumentsofthesameessentialnatureetc.
(6)Impairmenttestmethodandwithdrawalmethodsofimpairmentprovisionoffinancialassets(excludingaccountsreceivable)
TheCompanyshallcarryoutaninspection,onthebalancesheetday,onthecarryingamountofthefinancialassetsotherthanthosemeasuredattheirfairvaluesandofwhichthevariationisrecordedintotheprofitsand
lossesofthecurrentperiod.Wherethereisanyobjectiveevidenceprovingthatsuchfinancialassethasbeenimpaired,animpairmentprovisionshallbemade.Forthefinancialassetswithsignificantsingleamount,ifthereisobjectiveevidenceindicatestheoccurredimpairment,shouldrecognizetheimpairmentlossesandshouldincludewhichinthecurrentgainsandlosses.Asforthefinancialassetswithinsignificantsingleamountbutnotoccurimpairment,theCompanyshouldexecutetheimpairmenttestbycreditgroupsaccordingtothecreditdegreeofthecustomersandtheactualsituationofthehappenofthebaddebtsovertheyearsforrecognizingtheimpairmentlosses.
Theexpression“objectiveevidenceprovingthatthefinancialassethasbeenimpaired”referstotheactuallyincurredeventswhich,afterthefinancialassetisinitiallyrecognized,haveanimpactonthepredictedfuturecashflowofthesaidfinancialassetthatcanbereliablymeasuredbytheenterprise.
Theobjectiveevidencesthatcanprovetheimpairmentofafinancialassetshallinclude:
Aseriousfinancialdifficultyoccurstotheissuerordebtor;
Thedebtorbreachesanyofthecontractualstipulations,forexample,failstopayordelaysthepaymentofinterestsortheprincipal,etc.;
Thecreditormakesanyconcessiontothedebtorwhoisinfinancialdifficultiesduetoeconomicorlegalfactors,etc.;
Thedebtorwillprobablybecomebankruptorcarryoutotherfinancialreorganizations;
Thefinancialassetcannolongercontinuetobetradedintheactivemarketduetoseriousfinancialdifficultiesoftheissuer;
Itisimpossibletoidentifywhetherthecashflowofacertainassetwithinacertaincombinationoffinancialassetshasdecreasedornot.Butaftermakinganoverallappraisalaccordingtothepublicdataavailable,itisfoundthatthepredictedfuturecashflowofthesaidcombinationoffinancialassetshasindeeddecreasedsinceitwasinitiallyrecognizedandsuchdecreasecanbemeasured,forexample,theabilityofthedebtorofthesaidcombinationoffinancialassetsworsensgradually,theunemploymentrateofthecountryorregionwherethedebtorissituatedincreases,thepricesoftheregionwheretheguarantyissituatedareobviouslydropping,ortheindustrialsectorconcernedisinslump,etc.;
Anyseriouslydisadvantageouschangehasoccurredtotechnical,market,economicorlegalenvironment,etc.whereinthedebtoroperatesitsbusiness,whichmakestheinvestorofanequityinstrumentunabletotakebackitsinvestment;
Wherethefairvalueoftheequityinstrumentinvestmentdropssignificantlyornotcontemporarily;
Otherobjectiveevidencesshowingtheimpairmentofthefinancialasset.
Whereafinancialassetmeasuredonthebasisofpost-amortizationcostsisimpaired,thecarryingamountofthesaidfinancialassetshallbecalculatedbythedifferencebetweenthebookvalueandthecurrentvalueofthepredictedfuturecashflowoftheimpairmentlosses.
Whereanyfinancialassetmeasuredonthebasisofpost-amortizationcostsisrecognizedashavingsufferedfromanyimpairmentloss,ifthereisanyobjectiveevidenceprovingthatthevalueofthesaidfinancialassethasbeenrestored,anditisobjectivelyrelatedtotheeventsthatoccuraftersuchlossisrecognized,theimpairment-relatedlossesasoriginallyrecognizedshallbereversedandberecordedintotheprofitsandlossesofthecurrentperiod.
Whereasellablefinancialassetisimpaired,eveniftherecognitionofthefinancialassethasnotbeenterminated,theaccumulativelossesarisingfromthedecreaseofthefairvalueoftheowner’sequitywhichisdirectlyincludedshallbetransferredoutandrecordedintotheprofitsandlossesofthecurrentperiod..Theaccumulativelossesaretheinitialcostafterdeductingtheprincipal,theamortizationamount,fairvalueofcurrentperiodandbalanceafteroriginallyrecordedintoimpairmentlossofprofitsorlosses.Aftertherecognitionof
impairmentlosses,ifthereisanyobjectiveevidenceindicatedthatthevalueoffinancialassetsisresumedandobjectivelyrelatedtotheeventsaftertherecognitionofimpairmentlosses,transfertheimpairmentlossesoriginallyrecognized,transfertheimpairmentlossesofavailableforsaleequityinstrumentinvestmentandrecognizedasothercomprehensiveincome,andtransfertheimpairmentlossesofavailableforsaleliabilityinstrumentsandrecordintocurrentprofitsorlosses.11.NotesandAccountsReceivable(1)AccountsReceivablewithSignificantSingleAmountforwhichtheBadDebtProvisionisMadeIndividually
Recognitioncriteriaofaccountsreceivablewithindividualandsignificantamount
Recognitioncriteriaofaccountsreceivablewithindividualandsignificantamount | SignificantsingleamountsreferstotheaccountsreceivableofthesingleamountmorethanRMB1million(RMB1millioninclude)(includingaccountsreceivableandotheraccountsreceivable) |
Withdrawalmethodofthebaddebtprovisionoftheaccountsreceivablewithsignificantsingleamounts | TheCompanymakesanindependentimpairmenttestontheaccountsreceivablewithsignificantsingleamount,andprovisionforbaddebtsshallwithdrawnonthebasisofthebalancebetweenthecurrentvaluesofthepredictedfuturecashflowlowerthanbookvalue.Uponindependentimpairmenttest,theaccountsreceivablewithsignificantsingleamountshasnotbeenimpaired,itshallbewithdrawnbaddebtprovisionbasedonendingbalancebyadoptingaginganalysismethod. |
(2)AccountsReceivablewhichtheBadDebtProvisioniswithdrawnbyCreditRiskCharacteristics
Groupname | Withdrawalmethodofbaddebtprovision |
theageoftheaccountsreceivableisdividedbythegroupsofcreditrisk | aginganalysismethod |
Inthegroups,thoseadoptingaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□Notapplicable
Aging | Withdrawalproportionofaccountreceivables | Withdrawalproportionofotheraccountreceivables |
Within1year(including1year) | 2.00% | 2.00% |
1to2years | 5.00% | 5.00% |
2to3years | 15.00% | 15.00% |
3to4years | 30.00% | 30.00% |
4to5years | 60.00% | 60.00% |
Over5years | 100.00% | 100.00% |
Inthegroups,thoseadoptingbalancepercentagemethodtowithdrawbaddebtprovision
□Applicable√NotapplicableInthegroups,thoseadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable(3)AccountsReceivablewithanInsignificantSingleAmountbutforwhichtheBadDebtProvisionisMadeIndependently
Reasonofindividuallywithdrawingbaddebtprovision
Reasonofindividuallywithdrawingbaddebtprovision | InsignificantsingleamountsreferstotheaccountsreceivableofthesingleamountlowerthanRMB1million(RMB1millionnotinclude)(includingaccountsreceivableandotheraccountsreceivable). |
Withdrawalmethodforbaddebtprovision | Asforanaccountreceivablewithaninsignificantsingleamountandwhichcannotshowitsriskfeaturewhenwithdrawingabad-betprovisionforitonthegroupbasis,thebad-debtprovisionfortheaccountreceivableshallbewithdrawnbasedonthedifferenceoftheexpectedpresentvalueofthefuturecashflowsoftheaccountreceivablethatlessthanitscarryingamount.TheCompanyshallwithdrawthebad-debtprovisionforsuchanaccountreceivablebycombiningtheagingmethodandindividualjudgmentbasedonthedebtorentity’sactualfinancialposition,cashflowsandotherrelevantinformation. |
12.InventoryIstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?No
(1)CategoryofInventory
Inventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumedintheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtherawmaterials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourcedetc.
(2)Pricingmethod
Purchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthedispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproductsaccordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)Determinationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionforfallingpriceofinventory
Atthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.Whenalltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingpricereserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,theinventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Ofwhich:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchasthefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinished
productsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.13.AssetsHeldforSale
TheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowingconditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.14.Long-termEquityInvestments
(1)Judgmentstandardofjointcontrolandsignificantinfluences
Jointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheGroupwhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)Recognitionforinitialinvestmentcost
Theinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeans
Theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.
Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.
Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.
Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.
Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)Aninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethod
WheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)Aninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethod
WheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.
AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandthe
owners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.
Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.
IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheGroup,shouldbeadjustedaccordingtotheaccountingpoliciesoftheGroupandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.
ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheGroupaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.
TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:
firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theGroupshall,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,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontrolof
theinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.
ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheGroupacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.
ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.15.InvestmentRealEstate
Measurementmodeofinvestmentrealestate:
Measurementofcostmodel
Depreciationoramortizationmethod
Theinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedinthe
investmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.
Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.16.FixedAssets
(1)RecognitionConditions
Fixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
Categoryoffixedassets
Categoryoffixedassets | Method | Usefullife | Annualdeprecation |
Housingandbuilding | Averagemethodofusefullife | 20-40 | 2.50%-5% |
Machineryequipment | Averagemethodofusefullife | 6-15 | 6.67%-16.67% |
Transportationequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
Otherequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLease
TheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
1)Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevantconditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscouldbetransferredtotheCompany;
2)TheCompanyownsthechoosingrightforpurchasingandleasingthefixedassets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinanceleasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyontheleasestartingdate;
3)Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%oraboveoftheusefullifeoftheleasefixedassets;
4)ThecurrentvalueoftheminimumleasepaymentontheleasestartingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;
5)ThenatureoftheleaseassetsisspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.
Thefixedassetsbyfinanceleaseshouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumleasepaymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedastheentryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancingexpense.Fortheinitialdirectexpensesoccurintheleasenegotiationsand
thesigningprocessoftheleasecontractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedbyadoptingtheactualinterestrateduringtheperiodoftheleaseterm.
Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife17.ConstructioninProgressIstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?No
(1)Valuationoftheprogressinconstruction
Constructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)Standardizationonconstructioninprocesstransferredintofixedassetsandtimepoint
Theconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.18.BorrowingCosts
(1)Recognitionprincipleofcapitalizationofborrowingcosts
Theborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)Theperiodofcapitalizationofborrowingcosts
Theborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesandinventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetis
readyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.
Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.19.IntangibleAssets(1)PricingMethod,ServiceLife,andImpairmentTest
(1)Pricingmethodofintangibleassets
Intangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.
Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.
Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.
Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)Amortizationmethodandtermofintangibleassets
Asfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.
Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.
TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.(2)AccountingPolicesofInternalR&DExpenses
Theinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.
TheCompanycollectstheexpensesofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpendituresforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.20.ImpairmentofLong-termAssets
Fornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theGroupshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.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.21.AmortizationMethodofLong-termDeferredExpenses
Long-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,and
amortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.22.Payroll(1)AccountingTreatmentofShort-termCompensation
Short-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheGroupshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.(2)AccountingTreatmentoftheWelfareafterDemission
TheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.
Definedcontributionplans
DuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.(3)AccountingTreatmentoftheDemissionWelfare
TheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.23.EstimatedLiabilities
(1)Criteriaofestimatedliabilities
Onlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)Measurementofestimatedliabilities
TheCompanyshallmeasuretheestimateddebtsinaccordancewiththebestestimateofthenecessary
expensesfortheperformanceofthecurrentobligation.
TheCompanyshallcheckthebookvalueoftheestimateddebtsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.24.RevenueIstheCompanysubjecttoanydisclosurerequirementsforspecialindustries?No
(1)Recognitionofrevenuefromsaleofgoods:therevenuefromsellingshallberecognizedbythefollowingconditions:ThesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheCompany;theCompanyretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliableway;therelevantrevenueandcostsofsellinggoodscanbemeasuredinareliableway.Theamountoftherevenuefromsellingshallascertaintherevenueincurredbysellinggoodsinaccordancewiththereceivedorreceivablepricestipulatedinthecontractoragreementsignedbetweentheenterpriseandthebuyer,unlessthereceivedorreceivableamountasstipulatedinthecontractoragreementisunfair.
(2)Recognitionofrevenuefromprovidinglaborservices:Whenthetotalrevenueandcostsfromprovidinglaborcanbemeasuredinareliableway;therelevanteconomicbenefitsarelikelytoflowintotheenterprise;thescheduleofcompletionunderthetransactioncanbemeasuredinareliableway,therevenuefromprovidinglaborshallberecognized.IftheCompanycanreliablyestimatetheoutcomeofatransactionconcerningthelaborservicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthepercentage-of-completionmethodonthedateofthebalancesheet,otherwisetherevenuefromtheprovidingoflaborservicesshallberecognizedinaccordancewiththeamountofthecostoflaborservicesincurredandexpectedtobecompensated.TheCompanyrecognizedthecompletionprocessofthetransactionconcerningthelaborservicesaccordingtotheproportionoftheoccurredcostoftheestimatedtotalcost.Thetotalamountoftherevenuefromprovidingservicesshouldberecognizedaccordingtothecontractpricereceivedorreceivablefromtheacceptingofthelaborservicesortheagreementpriceexceptforthoseunfairprices.
(3)Recognitionoftherevenuefromtransferringuserightsofassets:Whentherelevanteconomicbenefitsarelikelytoflowintotheenterprisesandtheamountofrevenuescanbemeasuredinareliableway,therevenuefromabalienatingtherighttouseassetsshallberecognized.Theamountofinterestrevenueshouldbemeasuredandconfirmedinaccordancewiththelengthoftimeforwhichtheenterprise'scashisusedbyothersandtheactualinterestrate;theamountofroyaltyrevenueshouldbemeasuredandconfirmedinaccordancewiththeperiodandmethodofchargingasstipulatedintherelevantcontractoragreement;asfortherentalrevenue:theamountoftherentalrevenuefromtheoperationleaseshouldberecognizedaccordingtothestraight-linemethodduringeachperiodoftheleasetermoraccruedintothecurrentgainsandlossesifrentalactualoccurred.25.GovernmentSubsidies
(1)Type
Agovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentsubsidiesconsistofthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeaccordingtotherelevantgovernmentdocuments.
Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisofthe
Companyclassifiesthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidiesThegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentsubsidiesaswellascouldbeacquired.
Ifthegovernmentsubsidiesarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentsubsidiesarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatment
Thegovernmentsubsidiespertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentsubsidiespertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,andshallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.
Forgovernmentsubsidiesthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.
GovernmentsubsidiesrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.
Thegovernmentsubsidiesrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentsubsidiesassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.26.DeferredIncomeTaxAssetsandLiabilities
(1)Basisofrecognizingthedeferredincometaxassets
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxassetsshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.
TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)Basisofrecognizingthedeferredincometaxliabilities
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferred
taxliabilitiesshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.27.Lease(1)AccountingTreatmentofOperatingLease
Lesseeinanoperatingleaseshalltreattheleasepaymentunderanoperatingleaseasarelevantassetcostorthecurrentprofitorlossonastraight-linebasisovertheleaseterm.Theinitialdirectcostsincurredshallberecognizedasthecurrentprofitorloss;Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.
Lessorsinanoperatingleaseshallberecognizedasthecurrentprofitorlossonastraight-linebasisovertheleaseterm;Initialdirectcostsincurredbylessorsshallberecognizedasthecurrentprofitorloss;theinitialdirectexpensesoccurshouldbedirectlyincludedinthecurrentgainsandlossesexceptforthosewithlargeramountandbecapitalizedaswellasbeincludedinthegainsandlossesbystages.Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.(2)AccountingTreatmentsofFinancialLease
WhentheCompanyasthelessee,Ontheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingchargesandtheoccurredinitialdirectexpenses,shouldberecordedintheleaseassetsvalue.Duringeachleaseperiod,shouldrecognizethecurrentfinancingexpensesbyadoptingtheactualinterestrate.
WhentheCompanyastheleasorandonthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Duringeachleaseperiod,shouldrecognizethecurrentfinancingrevenuesadoptingtheactualinterestrate.28.OtherSignificantAccountingPoliciesandEstimates
(1)Operationtermination
OperationterminationreferstothecomposepartthatmeetwithoneofthefollowingconditionswhichhadbeendisposedbytheGrouporbeclassifiedtoheld-to-soldaswellascouldbeindividuallydistinguishedinoperatingandcompilingthefinancialstatement:
1)Thecomposepartrepresentsanindividualmainbusinessoramainoperationarea;
2)Thecomposepartisapartintendstodisposeandplananindividualmainbusinessoramainoperationarea;
3)Thecomposepartisasubsidiarywhichbeacquiredonlyforresold.
(2)Hedgingaccounting
Theterm“hedging”referstooneormorehedginginstrumentswhicharedesignatedbyanenterpriseforavoidingtherisksofforeignexchange,interestrate,commodityprice,stockprice,creditandetc.,andwhichis
expectedtomakethechangesinfairvalueorcashflowofhedginginstrument(s)tooffsetallorpartofthechangesinthefairvalueorcashflowofthehedgeditem.
Theterm“hedginginstrument”shallrefertoaderivativeinstrumentwhichisdesignatedbyanenterpriseforhedgingandbywhichitisexpectedthatchangesinitsfairvalueorcashflowcanoffsetthechangesinfairvalueorcashflowofthehedgeditem.Forahedgingofforeignexchangerisk,anon-derivativefinancialassetornon-derivativefinancialliabilitymaybeusedasahedginginstrument.
The“hedgeditem”shallrefertothefollowingitemswhichmakeanenterprisefacedtochangesinfairvalueorcashflowandaredesignatedasthehedgedobjectives.
Thehedgingshouldbeexecutedbythehedgingaccountingmethodswhensatisfyingthefollowingconditionsatthesametime:
1)Atthecommencementofthehedging,theenterpriseshallspecifythehedgingrelationshipformally(namelytherelationshipbetweenthehedginginstrumentandthehedgeditem)andprepareaformalwrittendocumentonthehedgingrelationship,riskmanagementobjectivesandthestrategiesofhedging.
2)Thehedgingexpectationishighlyefficientandmeetstheriskmanagementstrategy,whichisconfirmedforthehedgingrelationshipbyenterpriseattheverybeginning.
3)Foracashflowhedgingofforecasttransaction,theforecasttransactionshallbelikelytooccurandshallmaketheenterprisefacedtotheriskofchangesincashflow,whichwillultimatelyaffecttheprofitsandlosses.
4)Theeffectivenessofhedgingcanbereliablymeasured.
5)Thehedgingishighlyeffectiveinaccountingperiodinwhichthehedgingrelationshipisspecified.29.ChangesinMainAccountingPoliciesandEstimates(1)ChangeofAccountingPolicies
Contentsandreasons
Contentsandreasons | Procedures | Remarks |
Inthebalancesheet,“NotesReceivable”and“AccountsReceivable”arecombinedinto“NotesReceivableandAccountsReceivable”;“NotesPayable”and“AccountsPayable”arecombinedinto“NotesPayableandAccountsPayable”;“InterestReceivable”and“DividendsReceivable”areincorporatedinto“OtherReceivables”;“InterestPayable”and“DividendsPayable”areincorporatedinto“OtherPayables”“FixedAssetsLiquidation”isincorporatedinto“FixedAssets”;“EngineeringMaterials”isincorporatedinto“ConstructioninProgress”;“SpecificPayables”isincorporatedinto“Long-termPayables”.The | The14thMeetingofthe8thBoardofDirectors | TheimpactontheitemsofConsolidatedBalanceSheetasat31December2017isasfollows:1.“NotesReceivableandAccountsReceivable”increasedbyRMB1,108,415,299.12;”Notesreceivable”decreasedbyRMB716,404,345.57;“Accountsreceivable”decreasedbyRMB392,010,953.55;2.“NotesPayableandAccountsPayable”increasedbyRMB963,299,000.18,“NotesPayable”decreasedbyRMB347,070,500.00and“AccountsPayable”decreasedbyRMB616,228,500.18.3.The“DividendsPayable"decreasedbyRMB3,891,433.83 |
comparativedatashallbeadjustedaccordingly.
comparativedatashallbeadjustedaccordingly. | andwasincorporatedinto“OtherPayables”;the“QtherPayables”increasedbyRMB3,891,433.83,andtheadjustedbalanceof"OtherPayables"wasRMB195,985,676.91. | |
Intheincomestatement,theitemof“R&DExpense”isaddedandtheoriginalR&Dexpenseintheitemof“AdministrativeExpense”isreclassifiedinto“R&DExpense”;intheincomestatement,theitemsof“Ofwhich:interestexpense”and“Interestincome”areaddedundertheitemof“FinanceCosts”.Thecomparativedatashallbeadjustedaccordingly. | TheimpactontheitemsofConsolidatedIncomeStatementfortheyear2017isasfollows:The“AdministrativeExpense”wasreducedbyRMB76,715,296.15,reclassifiedto"R&DExpense",andtheadjusted“AdministrativeExpense”wasRMB107,835,619.11,whilethe“R&DExpense”increasedbyRMB76,715,296.15. |
NotesoftheMinistryofFinanceonRevisingandPrintingtheFormatof2018GeneralEnterprisesFinancialStatement(CK[2018]No.15)wasissuedbytheMinistryofFinanceon15June2018,whichrevisedtheformatofgeneralenterprisesfinancialstatements.Afteritwasbeingreviewedandapprovedbythe14thMeetingofthe8thBoardofDirectors,theCompanybegantoimplementtheabove-mentionednoticeontherequiredtimebytheMinistryofFinance.(2)ChangesinAccountingEstimates□Applicable√Notapplicable30.OtherCriticalaccountingjudgmentsandestimates
Duetotheinsideuncertaintyofoperatingactivity,theGroupneededtomakejudgments,estimatesandassumptiononthebookvalueoftheaccountswithoutaccuratemeasurementduringtheemploymentofaccountingpolicies.Andthesejudgments,estimatesandassumptionweremadebasingonthepriorexperienceoftheseniorexecutivesoftheGroup,aswellasinconsiderationofotherfactors.Thesejudgments,estimatesandassumptionwouldalsoaffectthereportamountofincome,costs,assetsandliabilities,aswellasthedisclosureofcontingentliabilitiesonbalancesheetdate.However,theuncertaintyoftheseestimateswaslikelytocausesignificantadjustmentonthebookvalueoftheaffectedassetsandliabilities.
TheGroupwouldcheckperiodicallytheabovejudgments,estimatesandassumptiononthebasisofcontinuingoperation.Forthechangesinaccountingestimatesonlyaffectedonthecurrentperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurred;forthechangesinaccountingestimatesaffectedthecurrentperiodandalsothefutureperiod,theinfluenceshouldberecognizedattheperiodofchangeoccurredandfutureperiod.
Onthebalancesheetdate,theGroupneededtomakejudgments,estimatesandassumptionontheaccountsinthefollowingimportantitems:
(1)ProvisionforBadDebts
Inaccordancewiththeaccountingpoliciesofaccountsreceivable,theGroupmeasuredthelossesforbaddebtsbyadoptingallowancemethod.Theimpairmentofaccountsreceivablewasbasedontheappraisaloftherecoverabilityofaccountsreceivable.Theimpairmentofaccountsreceivablewasdependentonthejudgmentandestimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthebookvalueofaccountsreceivableandthewithdrawalandreversalonprovisionforbaddebtsofaccountsreceivableduringtheperiodofestimatesbeingchanged.
(2)ProvisionforFallingPriceofInventories
Inaccordancewiththeaccountingpoliciesofinventories,fortheinventoriesthatthecostsweremorethanthenetrealizablevalueaswellasout-of-dateanddull-saleinventories,theGroupwithdrawntheprovisionforfallingpriceofinventoriesontheloweronebetweencostsandnetrealizablevalue.Evaluatingthefallingpriceofinventoriesneededthemanagementlevelgainthevalidevidenceandtakefullconsiderationofthepurposeofinventories,influenceofeventsafterbalancesheetdateandotherfactors,andthenmaderelevantjudgmentsandestimates.Theactualamountandthedifferenceofpreviousestimateswouldaffectthebookvalueofinventoriesandthewithdrawalandreversalonprovisionforbaddebtsofinventoriesduringtheperiodofestimatesbeingchanged.
(3)Held-to-maturityInvestment
TheCompanyclassifiesthenon-derivativefinancialassetswhichmeetwithconditionswithfixedorconfirmablerepaymentamountandfixedmaturitydateaswellastheCompanyownsdefiniteintentionandabilitytoholduntilmatureastheheld-to-maturityinvestment.Toexecutetheclassificationneedslargejudgment.Intheprocessofexecutingthejudgment,theCompanywouldassesstheintentionandabilityoftheinvestmentwhichholduntiltheduedate.Exceptfortheparticularsituation(forexample,sellingtheinvestmentwithinsignificantamountwhenapproachingtheduedate),iftheCompanyfailstoholdtheinvestmentuntiltheduedate,shouldre-classifytheinvestmenttotheavailable-for-salefinancialassetsandwouldnomorebeclassifiedastheheld-to-maturityinvestmentinthecurrentfiscalyearaswellastheafterwardtwocompletefiscalyears.Ifthereexitssuchsituation,thatwouldprobablycausesignificantinfluencesonthevalueoftherelevantfinancialassetspresentedonthefinancialstatementandmayinfluencetherisksmanagementstrategiesofthefinancialinstrumentsoftheCompany.
(4)Held-to-maturityInvestmentImpairment
TheCompanyconfirmswhethertheheld-to-maturityinvestmenthasimpairmentdependsonthejudgmentfromthemanagementlayertoalargeextent.Theobjectiveevidencesoftheimpairmentsincludingtheissuerswhichoccurseriousfinancialdifficultiesthatleadthefinancialassetscouldnotcontinuetotradeintheactivemarketandtoexecutethecontractsregulations(forexample,toreturntheinterestsortheprincipalviolatesatreaty)etc.Intheprocessofexecutingjudgment,theCompanyneedstoevaluatetheinfluencesoftheobjectiveevidencesoftheimpairmentontheestimatedfuturecashflow.
(5)TheImpairmentofFinancialAssetsAvailableforSale
TheGroupjudgedwhetherthefinancialassetsavailableforsalewereimpairedrelyingheavilyonthejudgmentandassumptionofthemanagementteam,soastodecidewhetherrecognizedtheimpairmentlossesintheincomestatement.Duringtheprocessofmakingthejudgmentandassumption,theGroupneededtoappraisethebalanceofthecostoftheinvestmentexceedingitsfairvalueandthecontinuousperiod,thefinancialstatusandbusinessforecastinashortperiod,includingtheindustrialsituation,technicalreform,creditlevel,defaultrateandriskofcounterparty.
(6)ProvisionforImpairmentofNon-financialNon-currentAssetsTheGroupmadeajudgmentonthenon-currentassetsotherthanfinancialassetswhethertheyhadanyindicationofimpairmentonthebalancesheetdate.Fortheintangibleassetswithoutfiniteservicelife,otherthantheannualimpairmenttest,theyshouldbesubjecttotheimpairmenttestwhentherewasanyindicationofimpairment.Forothernon-currentnon-financialassets,whichshouldbesubjectedtoimpairmenttestwhentherewasindicationofimpairmentindicatedthatthebookvaluecan’tberecoverable.
Whenthebookvalueoftheassetsorassetsportfoliowasmorethantherecoverableamount,whichwasthehigheronebetweenthenetamountoffairvalueafterdeductingthedisposalexpensesandthediscountedamountoftheestimatedfuturecashflow,itmeansimpairmentincurred.
Thenetamountoffairvalueafterdeductingthedisposalexpensesshouldbefixedthepriceinthesaleagreementforsimilarassetsinthefairtransactionminustheincreasedcostsdirectlyattributabletotheassetsdisposal.
Whenestimatedthediscountedvalueoffuturecashflow,theGroupneededtomakeimportantjudgmentontheoutput,sellingprice,relevantcostsandthediscountrateforcalculatingthediscountedamount,etc.Whenestimatedtherecoverableamount,theGroupwouldadoptalltheavailabledocuments,includingthepredictionforrelevantoutput,sellingpriceandrelevantoperatingcostsarisingfromreasonableandsupportiveassumptions.
TheGroupmadetheimpairmenttestongoodwillatleastonetimeperyear,whichrequiredtopredictthediscountedamountofthefuturecashflowoftheassetsorassetsportfoliowiththedistributedgoodwill,forwhich,theGroupneededtopredictthefuturecashflowoftheassetsorassetsportfolio,andadoptthepropertydiscountedratetodecidethediscountedamountoffuturecashflow.
(7)DepreciationandAmortization
Fortheinvestmentrealestate,fixedassetsandintangibleassets,theGroupwithdrewthedepreciationandamortizationbyadoptingthestraight-linemethodduringtheservicelifeafterfullconsiderationofthesalvagevalue.TheGroupcheckedtheservicelifeperiodicallysoastodecidetheamountofdepreciationandamortizationateachReportingPeriod.TheservicelifewasfixedbytheGroupinaccordancewiththepreviousexperienceofthesimilarassetsandtheexpectedtechnicalupdate.Iftherewasanysignificantchangeonthepreviousestimates,thedepreciationandamortizationexpensesshouldbeadjusted.
(8)IncomeTax
Duringtheroutineoperatingactivities,thereweresomeuncertaintyintheultimatetaxtreatmentandcalculationforpartsoftransactions.Someaccountsofsuchtransactioncouldbelistedaspre-taxexpendituresonlyaftertheapprovaloftaxationauthorities.Iftherewereanydifferencesbetweentheultimateresultofrecognitionforthesetaxationmatersandtheirinitialestimates,thedifferenceswouldaffectthecurrentincometaxanddeferredincometaxattheperiodofultimaterecognition.VI.Taxation1.MainTaxesandTaxRate
Categoryoftaxes
Categoryoftaxes | Taxbasis | Taxrate |
VAT | Payabletosalesrevenue | 17%,16%,13%,11%,10%,6% |
Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
Enterpriseincometax | Taxableincome | 25%or15% |
Educationsurcharge
Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
Name | Incometaxrate |
ChangchaiCo.,Ltd. | 15% |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
ChangzhouHoushengInvestmentCo.,Ltd. | 25% |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25% |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 25% |
2.TaxPreference
In2018,theCompanyhasbeenidentifiedasHigh-techEnterprises,therefore,itenjoys15-percentpreferentialrateforcorporateincometax;theCompany’scontrollingsubsidiary—ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2020inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopment.VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany1.MonetaryCapital
Unit:RMB
Item | Endingbalance | Beginningbalance |
Cashonhand | 441,363.70 | 466,356.31 |
Bankdeposits | 684,620,907.41 | 324,781,747.27 |
Othermonetarycapital | 115,897,765.58 | 105,057,264.13 |
Total | 800,960,036.69 | 430,305,367.71 |
Attheperiod-end,therestrictedmonetarycapitaloftheCompanywasRMB113,880,397.10,ofwhich,RMB111,740,012.93wasthecashdepositforbankacceptancebillsandRMB2,140,384.17wascashdepositforL/C.2.NotesReceivableandAccountsReceivable
Item | Endingbalance | Beginningbalance |
Notesreceivable | 495,370,782.47 | 716,404,345.57 |
Accountsreceivable
Accountsreceivable | 378,859,159.11 | 392,010,953.55 |
Total | 874,229,941.58 | 1,108,415,299.12 |
(1)NotesReceivable
1)NotesReceivableListedbyCategory
Unit:RMB
Item | Endingbalance | Beginningbalance |
Bankacceptancebill | 495,370,782.47 | 716,404,345.57 |
Total | 495,370,782.47 | 716,404,345.57 |
2)ThereWasNoNotesReceivablePledgedbytheCompanyatthePeriod-end3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
Bankacceptancebill | 485,209,946.33 | |
Total | 485,209,946.33 |
4)ThereWasNoNotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
(2)AccountsReceivable
1)AccountsReceivableClassifiedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 28,205,070.58 | 4.52% | 27,317,634.16 | 96.85% | 887,436.42 | 26,482,933.51 | 4.19% | 25,729,422.09 | 97.15% | 753,511.42 |
Accountsreceivablewithdrawalofbaddebtprovisionbycreditriskscharacteristics | 591,489,450.66 | 94.87% | 213,517,727.97 | 36.10% | 377,971,722.69 | 604,209,510.47 | 95.65% | 212,952,068.34 | 35.24% | 391,257,442.13 |
Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 3,815,656.95 | 0.61% | 3,815,656.95 | 100.00% | 974,986.14 | 0.16% | 974,986.14 | 100.00% | ||
Total | 623,510,178.19 | 100.00% | 244,651,019.08 | 39.24% | 378,859,159.11 | 631,667,430.12 | 100.00% | 239,656,476.57 | 37.94% | 392,010,953.55 |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheperiod-end:
√Applicable□Notapplicable
Unit:RMB
Accountsreceivable(classifiedbyunits) | Endingbalance | |||
Accountsreceivable | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
Customer1 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
Customer2 | 1,161,700.00 | 580,850.00 | 50.00% | Expectedtodifficultlyrecover |
Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
Customer4 | 2,484,497.34 | 2,177,910.92 | 87.66% | Expectedtodifficultlyrecover |
Customer5 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
Customer6 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
Customer7 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
Customer8
Customer8 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer9 | 1,679,109.54 | 1,679,109.54 | 100.00% | Difficulttorecover |
Customer10 | 1,470,110.64 | 1,470,110.64 | 100.00% | Expectedtodifficultlyrecover |
Total | 28,205,070.58 | 27,317,634.16 | -- | -- |
Inthegroups,accountsreceivableadoptedaginganalysismethodstoaccruebaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
Aging | Endingbalance | ||
Accountsreceivable | Baddebtprovision | Withdrawalproportion | |
Sub-itemwithin1year | |||
Subtotalofwithin1year | 363,307,344.78 | 7,266,147.87 | 2.00% |
1to2years | 18,019,515.24 | 900,975.76 | 5.00% |
2to3years | 4,691,418.52 | 703,712.78 | 15.00% |
3to4years | 929,020.59 | 278,706.18 | 30.00% |
4to5years | 434,915.38 | 260,949.23 | 60.00% |
Over5years | 204,107,236.15 | 204,107,236.15 | 100.00% |
Total | 591,489,450.66 | 213,517,727.97 |
Notesofthebasisofrecognizingthegroup:
Amongthesegroups,accountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebtprovision:
□Applicable√NotapplicableAmongthesegroups,accountsreceivableadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB6,540,830.48;theamountofthereversedorcollectedpartduringtheReportingPeriodwasofRMB1,546,287.97.3)ThereWereNoParticularsoftheActualVerificationofAccountsReceivableduringtheReportingPeriod4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Attheperiod-end,thetotaltop5oftheendingbalanceoftheaccountsreceivablecollectedaccordingtothearrearspartywasRMB206,150,555.84accountingfor33.06%ofthetotalendingbalanceofaccountsreceivable.AndtheendingbalanceofbaddebtprovisionwithdrawnwasRMB4,123,011.12.
3.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
Aging
Aging | Endingbalance | Beginningbalance | ||
Amount | Proportion | Amount | Proportion | |
Within1year | 9,535,876.40 | 84.01% | 16,300,217.23 | 91.67% |
1to2years | 437,529.70 | 3.85% | 110,270.90 | 0.62% |
2to3years | 57,536.24 | 0.51% | 384,622.72 | 2.16% |
Over3years | 1,321,354.76 | 11.63% | 985,896.92 | 5.55% |
Total | 11,352,297.10 | -- | 17,781,007.77 | -- |
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTarget
Attheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB6,371,752.62accountingfor56.13%ofthetotalendingbalanceofprepayments.4.OtherReceivables(1)OtherReceivablesClassifiedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Otherreceivableswithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,853,188.02 | 6.76% | 2,853,188.02 | 100.00% | 2,853,188.02 | 7.45% | 2,853,188.02 | 100.00% | ||
Otherreceivableswithdrawnbad | 37,222,241.84 | 88.13% | 27,977,657.42 | 75.16% | 9,244,584.42 | 33,367,460.9 | 87.08% | 27,572,489.76 | 82.63% | 5,794,971.22 |
debtprovisionaccordingtocreditriskscharacteristics
debtprovisionaccordingtocreditriskscharacteristics | 8 | |||||||||
Otherreceivableswithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,158,775.14 | 5.11% | 2,158,775.14 | 100.00% | 2,099,382.02 | 5.47% | 2,099,382.02 | 100.00% | ||
Total | 42,234,205.00 | 100.00% | 32,989,620.58 | 78.11% | 9,244,584.42 | 38,320,031.02 | 100.00% | 32,525,059.80 | 84.88% | 5,794,971.22 |
Otherreceivableswithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheperiod-end√Applicable□Notapplicable
Unit:RMB
Otherreceivables(byunit) | Endingbalance | |||
Otherreceivables | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
ChangchaiGroupImport&ExportCompany | 2,853,188.02 | 2,853,188.02 | 100.00% | Difficulttorecover |
Total | 2,853,188.02 | 2,853,188.02 | -- | -- |
Amongthesegroups,otherreceivablesadoptingaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
Aging | Endingbalance | ||
Otherreceivables | Baddebtprovision | Withdrawalproportion | |
Subentrywithin1year | |||
Subtotalofwithin1year | 7,235,781.27 | 144,715.62 | 2% |
1to2years | 1,914,609.00 | 95,730.46 | 5% |
2to3years | 284,706.89 | 42,706.03 | 15% |
3to4years | 96,930.77 | 29,079.23 | 30% |
4to5years | 61,969.57 | 37,181.74 | 60% |
Over5years | 27,628,244.34 | 27,628,244.34 | 100% |
Total
Total | 37,222,241.84 | 27,977,657.42 |
Notes:
Amongthesegroups,otherreceivablesadoptingbalancepercentagemethodtowithdrawbaddebtprovision:
□Applicable√NotapplicableAmongthesegroups,otherreceivablesadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB466,360.42;theamountofthereversedorcollectedpartduringtheReportingPeriodwasofRMB1,799.64.(3)ThereWereNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod(4)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
Nature | Endingcarryingamount | Beginningcarryingamount |
Margin&cashpledge | 4,200.00 | 4,200.00 |
Intercoursefunds | 25,451,250.34 | 21,072,102.14 |
Pettycashandborrowingsbyemployees | 1,232,153.09 | 1,854,174.11 |
Other | 15,546,601.57 | 15,389,554.77 |
Total | 42,234,205.00 | 38,320,031.02 |
(5)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
ChangzhouChangjiangCastingMaterialsCo.,Ltd. | Intercoursefunds | 5,000,000.00 | Within1year | 11.84% | 100,000.00 |
ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 6.96% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 6.76% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 3.85% | 1,626,483.25 |
ChangzhouGroupSettlementCentre
ChangzhouGroupSettlementCentre | Intercoursefunds | 1,140,722.16 | Over5years | 2.70% | 1,140,722.16 |
Total | -- | 13,560,393.43 | -- | 32.11% | 8,660,393.43 |
5.InventoriesWhethertheCompanyneedsatisfyrelevantdisclosurerequirementsgoverningtherealestateindustryNo
(1)CategoryofInventories
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
Rawmaterials | 134,454,498.93 | 5,845,504.24 | 128,608,994.69 | 137,637,917.36 | 5,646,775.16 | 131,991,142.20 |
Goodsinprocess | 166,798,553.34 | 24,187,100.54 | 142,611,452.80 | 142,366,956.08 | 18,705,451.92 | 123,661,504.16 |
Inventorygoods | 288,979,920.46 | 16,035,855.03 | 272,944,065.43 | 247,668,232.73 | 15,020,818.93 | 232,647,413.80 |
Revolvingmaterials | ||||||
Consumptivelivingassets | ||||||
CompletedbutUnsettledAssetsGeneratedfromConstructionContacts | ||||||
Materialsprocessedoncommission | 13,330,233.29 | 993,300.18 | 12,336,933.11 | 17,692,442.71 | 183,111.28 | 17,509,331.43 |
Lowpricedandeasilywornarticles | 3,632,711.20 | 2,180,265.53 | 1,452,445.67 | 4,212,709.15 | 1,775,293.26 | 2,437,415.89 |
Total | 607,195,917.22 | 49,242,025.52 | 557,953,891.70 | 549,578,258.03 | 41,331,450.55 | 508,246,807.48 |
WhethertheCompanyneedsatisfyrelevantdisclosurerequirementsstatedinSZSEIndustrialInformationDisclosureGuidanceNo.4---ListedCompanySpecializedinSeedIndustryandPlantingBusinessesornot?No(2)FallingPriceReservesofInventories
Unit:RMB
Item
Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
Withdrawal | Other | Reverseorwrite-off | Other | |||
Rawmaterials | 5,646,775.16 | 802,784.22 | 604,055.14 | 5,845,504.24 | ||
Goodsinprocess | 18,705,451.92 | 24,187,100.54 | 18,705,451.92 | 24,187,100.54 | ||
Inventorygoods | 15,020,818.93 | 15,436,905.74 | 14,421,869.64 | 16,035,855.03 | ||
Revolvingmaterials | ||||||
Consumptivelivingassets | ||||||
CompletedbutUnsettledAssetsGeneratedfromConstructionContracts | ||||||
Materialsprocessedoncommission | 183,111.28 | 810,188.90 | 0.00 | 993,300.18 | ||
Lowpricedandeasilywornarticles | 1,775,293.26 | 902,415.39 | 497,443.12 | 2,180,265.53 | ||
Total | 41,331,450.55 | 42,139,394.79 | 34,228,819.82 | 49,242,025.52 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories(4)ThereWasNoCompletedbutUnsettledAssetsGeneratedfromConstructionContractsatthePeriod-end6.OtherCurrentAssets
Unit:RMB
Item
Item | Endingbalance | Beginningbalance |
TheVATtaxcredits | 25,962,369.29 | 28,078,565.33 |
Bankfinancialproducts | 0.00 | 825,933.00 |
Prepaidexpense | 86,761.81 | 135,685.72 |
Securitiescompanyfinancialproduct | 8,253,873.41 | 13,500,000.00 |
Other | 54,604.46 | 0.00 |
Total | 34,357,608.97 | 42,540,184.05 |
7.Available-for-saleFinancialAssets(1)ListofAvailable-for-saleFinancialAssets
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Available-for-saledebtinstruments: | ||||||
Available-for-saleequityinstruments: | 500,061,369.49 | 1,210,000.00 | 498,851,369.49 | 794,732,639.04 | 1,210,000.00 | 793,522,639.04 |
Measuredatfairvale | 370,940,000.00 | 370,940,000.00 | 685,837,500.00 | 685,837,500.00 | ||
Measuredatcost | 129,121,369.49 | 1,210,000.00 | 127,911,369.49 | 108,895,139.04 | 1,210,000.00 | 107,685,139.04 |
Total | 500,061,369.49 | 1,210,000.00 | 498,851,369.49 | 794,732,639.04 | 1,210,000.00 | 793,522,639.04 |
(2)Available-for-saleFinancialAssetsatFairValueatthePeriod-end
Unit:RMB
Category
Category | Available-for-saleequityinstruments | Total |
Costofequityinstruments/amortizedcostofdebtinstruments | 59,874,500.00 | 59,874,500.00 |
Fairvalue | 370,940,000.00 | 370,940,000.00 |
Accumulatedchangesinfairvaluerecordedintoothercomprehensiveincome | 264,405,675.00 | 264,405,675.00 |
Amountwithdrawnimpairment |
(3)Available-for-saleFinancialAssetsMeasuredbyCostatthePeriod-end
Unit:RMB
Investee | Carryingamount | Depreciationreserves | Shareholdingproportionamongtheinvestees | CashbonusoftheReportingPeriod | ||||||
Period-beginning | Increase | Decrease | Period-end | Period-beginning | Increase | Decrease | Period-end | |||
JiangsuLianceElectromechanicalTechnologyCo.,LTD. | 7,200,000.00 | 7,200,000.00 | 3.02% | |||||||
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 100,000,000.00 | 100,000,000.00 | 70.92% | |||||||
KailongHighTechnologyCo.,Ltd. | 20,001,268.00 | 20,001,268.00 | 1.20% | |||||||
GuizhouWarmenPharmaceuticalCo,Ltd. | 200,104.80 | 200,104.80 | 920.00 | |||||||
GuizhouAndaEnergyTechnologyCo.,Ltd. | 195,297.49 | 195,297.49 | 3,000.00 |
FUNIKUltrahardMaterialCo.,Ltd
FUNIKUltrahardMaterialCo.,Ltd | 63,096.08 | 63,096.08 | |||||||
EpitopOptoelectronicCo.,LTD | 26,640.67 | 26,640.67 | |||||||
HENANLANTIANGAS,.LTD. | 160,744.76 | 160,744.76 | 6,000.00 | ||||||
HebeiSongheRecyclingResourcesCo.,Ltd. | 104,699.44 | 104,699.44 | |||||||
HunanLitianHigh-techMaterialsCo.,Ltd. | 49,255.00 | 49,255.00 | |||||||
Other | 1,210,000.00 | 1,210,000.00 | 1,210,000.00 | 1,210,000.00 | |||||
Total | 108,895,139.04 | 20,315,967.20 | 89,736.75 | 129,121,369.49 | 1,210,000.00 | 1,210,000.00 | -- | 9,920.00 |
Note:Otherrespectivelyreferstoasfollows:RMB0.51millionforChengduChangwanDieselMachineDistributionCo.,Ltd.,RMB0.29millionforChongqingWanzhouChangwanDieselEngineFittingsCo.,Ltd.,RMB20,000forChangzhouEconomicandTechnologicalDevelopmentCompany,RMB0.1millionforChangzhouTractorCompany,RMB0.2millionforChangzhouEconomicCommissionIndustrialFundRotatingSavingsandCreditAssociations,RMB90,000forBeijingEngineeringMachineryAgriculturalMachineryCompany.Theabove-mentionedinvestmentsaredifficulttorecover,thusthedepreciationreservesarewithdrawninfull.(4)ChangesinDepreciationofAvailable-for-saleFinancialAssetsduringtheReportingPeriod
Unit:RMB
Category | Available-for-saleequityinstruments | Available-for-saledebtinstruments | Total |
Beginningbalancewithdrawnimpairment | 1,210,000.00 | 1,210,000.00 | |
WithdrawalintheReportingPeriod | |||
Ofwhich:transferredfromothercomprehensiveincome |
DecreaseintheReportingPeriod
DecreaseintheReportingPeriod | |||
Ofwhich:transferredbackduetorallyoffairvalueaftertheReportingPeriod | |||
Endingbalancewithdrawnimpairment | 1,210,000.00 | 1,210,000.00 |
8.Long-termEquityInvestments
Unit:RMB
Investees | Beginningbalance | Increase/decrease | Endingbalance | Endingbalanceofdepreciationreserves | |||||||
Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
I.Jointventures | |||||||||||
II.Associatedenterprises | |||||||||||
BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
Subtotal | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
Total | 44,182.50 | 44,182.50 | 44,182.50 |
9.InvestmentProperty(1)InvestmentPropertyAdoptingtheCostMeasurementMode√Applicable□Notapplicable
Unit:RMB
Item
Item | Housesandbuildings | Landuseright | Constructioninprogress | Total |
I.Originalcarryingvalue | ||||
1.Beginningbalance | 87,632,571.14 | 87,632,571.14 | ||
2.Increasedamountoftheperiod | ||||
(1)Outsourcing | ||||
(2)Transferfrominventories\fixedassets\constructioninprogress | ||||
(3)Enterprisecombinationincrease | ||||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
(2)Othertransfer | ||||
4.Endingbalance | 87,632,571.14 | 87,632,571.14 | ||
II.Accumulativedepreciationandaccumulativeamortization | ||||
1.Beginningbalance | 30,351,541.11 | 30,351,541.11 | ||
2.Increasedamountoftheperiod | 2,208,340.80 | 2,208,340.80 | ||
(1)Withdrawaloramortization | 2,208,340.80 | 2,208,340.80 | ||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
(2)Othertransfer | ||||
4.Endingbalance | 32,559,881.91 | 32,559,881.91 |
III.Depreciationreserves
III.Depreciationreserves | |||
1.Beginningbalance | |||
2.Increasedamountoftheperiod | |||
(1)Withdrawal | |||
3.Decreasedamountoftheperiod | |||
(1)Disposal | |||
(2)Othertransfer | |||
4.Endingbalance | |||
IV.Carryingvalue | |||
1.Endingcarryingvalue | 55,072,689.23 | 55,072,689.23 | |
2.Beginningcarryingvalue | 57,281,030.03 | 55,072,689.23 |
10.FixedAssets
Unit:RMB
(1)ListofFixedAssets
Unit:RMB
Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
I.Originalcarryingvalue | |||||
1.Beginningbalance | 445,235,823.37 | 910,680,568.87 | 23,363,510.00 | 44,350,166.61 | 1,423,630,068.85 |
2.Increasedamountoftheperiod | 1,840,550.18 | 31,574,161.21 | 1,081,805.53 | 2,940,725.89 | 37,437,242.81 |
Item | Endingbalance | Beginningbalance |
Fixedassets | 511,250,371.37 | 560,049,970.50 |
Total | 511,250,371.37 | 560,049,970.50 |
(1)Purchase
(1)Purchase | 807,517.05 | 1,478,874.00 | 46,410.26 | 680,597.77 | 3,013,399.08 |
(2)Transferfromconstructioninprogress | 1,033,033.13 | 30,095,287.21 | 1,035,395.27 | 2,260,128.12 | 34,423,843.73 |
(3)Enterprisecombinationincrease | |||||
3.Decreasedamountoftheperiod | 6,143,815.14 | 6,361,487.00 | 2,868,503.04 | 15,373,805.18 | |
(1)DisposalorScrap | 6,143,815.14 | 6,361,487.00 | 2,868,503.04 | 15,373,805.18 | |
4.Endingbalance | 447,076,373.55 | 936,110,914.94 | 18,083,828.53 | 44,422,389.46 | 1,445,693,506.48 |
II.Accumulativedepreciation | |||||
1.Beginningbalance | 249,203,618.96 | 561,623,572.09 | 17,903,567.46 | 33,355,224.84 | 862,085,983.35 |
2.Increasedamountoftheperiod | 16,575,213.22 | 62,874,579.95 | 1,657,207.90 | 3,491,318.83 | 84,598,319.90 |
(1)Withdrawal | 16,575,213.22 | 62,874,579.95 | 1,657,207.90 | 3,491,318.83 | 84,598,319.90 |
3.Decreasedamountoftheperiod | 4,875,587.40 | 6,219,137.33 | 2,640,558.41 | 13,735,283.14 | |
(1)DisposalorScrap | 4,875,587.40 | 6,219,137.33 | 2,640,558.41 | 13,735,283.14 | |
4.Endingbalance | 265,778,832.18 | 619,622,564.64 | 13,341,638.03 | 34,205,985.26 | 932,949,020.11 |
III.Depreciationreserves | |||||
1.Beginning | 1,494,115.00 | 1,494,115.00 |
balance
balance | |||||
2.Increasedamountoftheperiod | |||||
(1)Withdrawal | |||||
3.Decreasedamountoftheperiod | |||||
(1)DisposalorScrap | |||||
4.Endingbalance | 1,494,115.00 | 1,494,115.00 | |||
IV.Carryingvalue | |||||
1.Endingcarryingvalue | 181,297,541.37 | 314,994,235.30 | 4,742,190.50 | 10,216,404.20 | 511,250,371.37 |
2.Beginningcarryingvalue | 196,032,204.41 | 347,562,881.78 | 5,459,942.54 | 10,994,941.77 | 560,049,970.50 |
ThedepreciationintheReportingPeriodwasRMB84,598,319.90.theoriginalvalueofthefixedassetstransferredfromconstructioninprogressintheReportingPeriodwasRMB34,423,843.73.11.ConstructioninProgress
Unit:RMB
Item | Endingbalance | Beginningbalance |
Constructioninprogress | 89,090,384.71 | 94,581,989.06 |
Total | 89,090,384.71 | 94,581,989.06 |
(1)ListofConstructioninProgress
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Trialproductionworkshopproject | 14,349,461.80 | 14,349,461.80 | 14,349,461.80 | 14,349,461.80 |
technologycenter
technologycenter | ||||||
Castingrenovationproject | 396,000.00 | 396,000.00 | 396,000.00 | 396,000.00 | ||
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 11,371,098.24 | 11,371,098.24 | 11,217,706.49 | 11,217,706.49 | ||
DieselEngineCylinderBodyFlexibleManufacturingLine | 19,061,813.95 | 19,061,813.95 | 20,125,955.51 | 20,125,955.51 | ||
35KVSubstation | 1,321,959.41 | 1,321,959.41 | 1,218,587.83 | 1,218,587.83 | ||
Equipmenttobeinstalledandpaymentforprojects | 42,590,051.31 | 42,590,051.31 | 47,274,277.43 | 47,274,277.43 | ||
Total | 89,090,384.71 | 89,090,384.71 | 94,581,989.06 | 94,581,989.06 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:amountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
Trialproductionworkshopproject | 2,289.63 | 14,349,461.80 | 14,349,461.80 | 62.67% | Uncompleted | Other |
technologycenter
technologycenter | ||||||||||
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 7,019.00 | 11,217,706.49 | 172,084.91 | 18,693.16 | 11,371,098.24 | 91.94% | Uncompleted | Other | ||
DieselEngineCylinderBodyFlexibleManufacturingLine | 11,604.00 | 20,125,955.51 | 1,167,197.29 | 2,231,338.85 | 19,061,813.95 | 35.24% | Uncompleted | Other | ||
35KVSubstation | 1,218,587.83 | 103,371.58 | 1,321,959.41 | Uncompleted | Other | |||||
Total | 20,912.63 | 46,911,711.63 | 1,442,653.78 | 2,250,032.01 | 46,104,333.40 | -- |
12.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
Item | Landuseright | Software | Patent | Total |
I.Originalcarryingvalue | ||||
1.Beginningbalance | 144,770,507.85 | 10,972,366.81 | 5,488,000.00 | 161,230,874.66 |
2.Increasedamountoftheperiod | 545,213.13 | 545,213.13 | ||
(1)Purchase | 545,213.13 | 545,213.13 | ||
(2)InternalR&D | ||||
(3)Businesscombinationincrease | ||||
3.Decreasedamountoftheperiod |
(1)Disposal
(1)Disposal | ||||
4.Endingbalance | 144,770,507.85 | 11,517,579.94 | 5,488,000.00 | 161,776,087.79 |
II.Accumulatedamortization | ||||
1.Beginningbalance | 45,156,044.23 | 7,821,750.27 | 457,333.30 | 53,435,127.80 |
2.Increasedamountoftheperiod | 2,971,978.28 | 1,727,302.37 | 548,799.96 | 5,248,080.61 |
(1)Withdrawal | 2,971,978.28 | 1,727,302.37 | 548,799.96 | 5,248,080.61 |
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
4.Endingbalance | 48,128,022.51 | 9,549,052.64 | 1,006,133.26 | 58,683,208.41 |
III.Depreciationreserves | ||||
1.Beginningbalance | ||||
2.Increasedamountoftheperiod | ||||
(1)Withdrawal | ||||
3.Decreasedamountoftheperiod | ||||
(1)Disposal | ||||
4.Endingbalance | ||||
IV.Carryingvalue | ||||
1.Endingcarryingvalue | 96,642,485.34 | 1,968,527.30 | 4,481,866.74 | 103,092,879.38 |
2.Beginningcarryingvalue | 99,614,463.62 | 3,150,616.54 | 5,030,666.70 | 107,795,746.86 |
13.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities(1)DeferredIncomeTaxAssetsthatHadnotBeenSet-off
Unit:RMB
Item | Endingbalance | Beginningbalance | ||
Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
Provisionforimpairmentofassets | 6,401,000.68 | 979,822.71 | 6,519,959.41 | 1,006,953.81 |
Total | 6,401,000.68 | 979,822.71 | 6,519,959.41 | 1,006,953.81 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
Item
Item | Endingbalance | Beginningbalance | ||
Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 5,247,821.44 | 1,311,955.36 | 6,061,317.56 | 1,515,329.39 |
Changesinfairvalueofavailable-for-salefinancialassets | 311,065,500.00 | 46,659,825.00 | 605,963,000.00 | 90,894,450.00 |
Total | 316,313,321.44 | 47,971,780.36 | 612,024,317.56 | 92,409,779.39 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Baddebtprovision | 271,239,638.98 | 265,661,576.96 |
Inventoryfallingpricereserves | 49,242,025.52 | 41,331,450.55 |
Total | 320,481,664.50 | 306,993,027.51 |
14.OtherNon-currentAssets
Unit:RMB
Item | Endingbalance | Endingdepreciationreserve | Beginningbalance | Beginningdepreciationreserve |
Entrustedloans | 4,000,000.00 | 4,000,000.00 | 14,000,000.00 | 14,000,000.00 |
Total | 4,000,000.00 | 4,000,000.00 | 14,000,000.00 | 14,000,000.00 |
15.Short-termBorrowings(1)CategoryofShort-termBorrowings
Unit:RMB
Item | Endingbalance | Beginningbalance |
Mortgageloans | 7,000,000.00 | 14,900,000.00 |
Guaranteedloans | 10,000,000.00 | 10,000,000.00 |
Creditloans | 10,000,000.00 |
Total
Total | 27,000,000.00 | 24,900,000.00 |
16.NotesPayableandAccountsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Notespayable | 438,375,400.00 | 347,070,500.00 |
Accountspayable | 591,754,875.77 | 616,228,500.18 |
Total | 1,030,130,275.77 | 963,299,000.18 |
(1)ListofNotesPayable
Unit:RMB
Category | Endingbalance | Beginningbalance |
Bankacceptancebill | 438,375,400.00 | 347,070,500.00 |
Total | 438,375,400.00 | 347,070,500.00 |
Therewasnooverduenotespayableattheperiod-end.
(2)ListofAccountsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Loans | 591,754,875.77 | 616,228,500.18 |
Total | 591,754,875.77 | 616,228,500.18 |
(3)ThereWereNoSignificantAccountsPayableAgingoverOneYear17.AdvancesfromCustomers(1)ListofAdvancesfromCustomers
Unit:RMB
Item | Endingbalance | Beginningbalance |
Loans | 34,500,232.97 | 40,153,984.91 |
Total | 34,500,232.97 | 40,153,984.91 |
(2)ThereWereNoSignificantAdvancesfromCustomersAgingoverOneYear18.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
Item
Item | Beginningbalance | Increase | Decrease | Endingbalance |
I.Short-termsalary | 51,247,112.66 | 280,901,398.81 | 281,647,918.48 | 50,500,592.99 |
II.Post-employmentbenefit-definedcontributionplans | 40,098,239.15 | 40,098,239.15 | ||
III.Terminationbenefits | ||||
IV.Currentportionofotherwelfares | ||||
Total | 51,247,112.66 | 320,999,637.96 | 321,746,157.63 | 50,500,592.99 |
(2)ListofShort-termSalary
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Salary,bonus,allowance,subsidy | 42,781,111.59 | 232,330,506.45 | 233,171,760.21 | 41,939,857.83 |
2.Employeewelfare | 177,592.74 | 4,437,251.44 | 4,525,251.44 | 89,592.74 |
3.Socialinsurance | 19,902,879.86 | 19,902,879.86 | ||
Ofwhich:Medicalinsurancepremiums | 16,483,144.57 | 16,483,144.57 | ||
Work-relatedinjuryinsurance | 1,810,165.12 | 1,810,165.12 | ||
Maternityinsurance | 1,609,570.17 | 1,609,570.17 | ||
4.Housingfund | 19,768,075.80 | 19,768,075.80 | ||
5.Laborunionbudgetandemployeeeducationbudget | 8,288,408.33 | 4,462,685.26 | 4,279,951.17 | 8,471,142.42 |
6.Short-termabsencewithsalary | ||||
7Short-termprofitsharingscheme | ||||
Total | 51,247,112.66 | 280,901,398.81 | 281,647,918.48 | 50,500,592.99 |
(3)ListofDefinedContributionPlans
Unit:RMB
Item
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Basicpensionbenefits | 39,068,369.04 | 39,068,369.04 | ||
2.Unemploymentinsurance | 1,029,870.11 | 1,029,870.11 | ||
3.Annuity | ||||
Total | 40,098,239.15 | 40,098,239.15 |
19.TaxesPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
VAT | 876,055.81 | 257,634.15 |
Corporateincometax | 3,665,483.92 | 1,220,803.03 |
Personalincometax | 140,662.05 | 397,114.88 |
Urbanmaintenanceandconstructiontax | 993,210.56 | 850,853.05 |
Propertytax | 94,256.40 | 173,200.76 |
Landusetax | 100,135.19 | 21,000.00 |
Stampduty | 4,594.61 | 7,508.61 |
EducationSurcharge | 116,355.46 | 14,671.54 |
Comprehensivefees | 1,075,134.76 | 1,075,134.76 |
Environmentalprotectiontax | 197.13 | |
Total | 7,066,085.89 | 4,017,920.78 |
20.OtherPayables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Otherpayables | 195,520,817.07 | 192,094,243.08 |
Total | 199,412,250.90 | 195,985,676.91 |
(1)DividendsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Ordinarysharedividends
Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
Total | 3,891,433.83 | 3,891,433.83 |
Thereasonfornon-paymentforoveroneyear:notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
Item | Endingbalance | Beginningbalance |
Margin&cashpledged | 3,369,213.08 | 3,266,453.59 |
Intercoursefundsamongunits | 10,977,924.77 | 10,838,311.11 |
Intercoursefundsamongindividuals | 375,201.04 | 457,465.63 |
Salesdiscountandthreeguarantees | 144,278,468.99 | 142,449,844.40 |
Other | 36,520,009.19 | 35,082,168.35 |
Total | 195,520,817.07 | 192,094,243.08 |
2)SignificantOtherPayablesAgingoverOneYear
Thesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.21.CurrentPortionofNon-currentLiabilities
Unit:RMB
Item | Endingbalance | Beginningbalance |
Currentportionoflong-termborrowings | 18,500,000.00 | |
Total | 18,500,000.00 |
Thecurrentportionoflong-termborrowingswasRMB18,500,000.00whichwastheborrowingfortechnicaltransformationprojectoftheCompanyastheparentprovidedbyChinaMerchantsBankChangzhouBranchwiththetermfrom20September2017to19September2019andtheinterestrateof4.75%.22.OtherCurrentLiabilities
Unit:RMB
Item | Endingbalance | Beginningbalance |
Sewagecharge
Sewagecharge | 54,000.00 | |
Electriccharge | 2,082,985.18 | 1,974,937.59 |
Total | 2,082,985.18 | 2,028,937.59 |
23.Long-termBorrowings
Unit:RMB
Item | Endingbalance | Beginningbalance |
Mortgageborrowings | 2,000,000.00 | 2,000,000.00 |
Loanoncredit | 19,500,000.00 | |
Total | 2,000,000.00 | 21,500,000.00 |
Themortgageloanattheperiod-endwasRMB2,000,000.00,whichwastheloanbythesubsidiary-ChangchaiWanzhoufromGaosuntangBranchofChongqingThreeGorgesBankwiththedurationfrom14December2017to6November2020andtheinterestrateof6.15%.24.DeferredIncome
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
Governmentsubsidies | 60,992,858.46 | — | 1,064,373.62 | 59,928,484.84 | Governmentappropriation |
Total | 60,992,858.46 | — | 1,064,373.62 | 59,928,484.84 | -- |
Iteminvolvinggovernmentsubsidies:
Unit:RMB
Item | Beginningbalance | Amountofnewlysubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
Electriccontrolofdieselengine | 1,045,200.00 | 398,400.00 | 646,800.00 | Relatedtoassets |
researchanddevelopmentandindustrializationallocations
researchanddevelopmentandindustrializationallocations | ||||||
Nationalmajorprojectspecialallocations | 28,770,000.00 | 28,770,000.00 | Relatedtoassets | |||
Removecompensation | 21,177,658.46 | 665,973.62 | 20,511,684.84 | Relatedtoassets | ||
ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 10,000,000.00 | 10,000,000.00 | Relatedtoassets |
25.ShareCapital
Unit:RMB
Beginning
balance
Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
Thesumofshares | 561,374,326.00 | 561,374,326.00 |
26.CapitalReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Capitalpremium(premiumonstock) | 143,990,690.24 | 143,990,690.24 | ||
Othercapitalreserves | 20,337,975.19 | 20,337,975.19 | ||
Total | 164,328,665.43 | 164,328,665.43 |
27.OtherComprehensiveIncome
Unit:RMB
Item | Beginningbalance | ReportingPeriod | Endingbalance | ||||
IncomebeforetaxationintheCurrentPeriod | Less:recordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | |||||||
Ofwhich:Changescausedbyre-measurementsondefinedbenefitpensionschemes | |||||||
Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod |
II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss
II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | 515,068,550.00 | -167,897,500.00 | 107,950,000.00 | -25,184,625.00 | -250,662,875.00 | 264,405,675.00 | |
Ofwhich:Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | |||||||
Gain/Lossonchangesinfairvalueofavailable-for-salefinancialassets | 515,068,550.00 | -167,897,500.00 | 107,950,000.00 | -25,184,625.00 | -250,662,875.00 | 264,405,675.00 | |
Gain/Lossarisingfromreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | |||||||
Effectivegain/lossoncashflowhedges | |||||||
Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | |||||||
Totalofothercomprehensiveincome | 515,068,550.00 | -167,897,500.00 | 107,950,000.00 | -25,184,625.00 | -250,662,875.00 | 264,405,675.00 |
28.SpecificReserve
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Safetyproductioncost | 13,289,059.21 | 4,135,805.99 | 2,241,906.37 | 15,182,958.83 |
Total | 13,289,059.21 | 4,135,805.99 | 2,241,906.37 | 15,182,958.83 |
29.SurplusReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Statutorysurplusreserves | 300,548,352.26 | 6,427,839.99 | 306,976,192.25 | |
Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
Total | 313,705,210.16 | 6,427,839.99 | 320,133,050.15 |
30.RetainedEarnings
Unit:RMB
Item
Item | ReportingPeriod | Sameperiodoflastyear |
Beginningbalanceofretainedearningsbeforeadjustments | 679,131,047.06 | 651,365,935.39 |
Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-“meansdown) | ||
Beginningbalanceofretainedearningsafteradjustments | 679,131,047.06 | 651,365,935.39 |
Add:NetprofitattributabletoownersoftheCompanyastheparent | 62,021,374.04 | 46,431,302.73 |
Less:withdrawalofstatutorysurplusreserves | 6,427,839.99 | 1,824,961.28 |
Withdrawalofdiscretionalsurplusreserves | ||
Withdrawalofgeneralreserve | ||
Dividendofordinarysharespayable | 16,841,229.78 | 16,841,229.78 |
Dividendofordinarysharestransferredassharecapital | ||
Endingretainedearnings | 717,883,351.33 | 679,131,047.06 |
31.OperatingRevenueandCostofSales
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
Mainoperations | 2,093,039,249.58 | 1,782,146,126.35 | 2,393,799,573.65 | 2,053,982,326.15 |
Otheroperations | 39,863,469.02 | 31,298,459.31 | 29,259,384.64 | 18,895,650.62 |
Total | 2,132,902,718.60 | 1,813,444,585.66 | 2,423,058,958.29 | 2,072,877,976.77 |
32.TaxesandSurtaxes
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Urbanmaintenanceandconstructiontax | 1,538,140.51 | 2,565,415.20 |
EducationSurcharge | 1,098,335.32 | 1,832,439.41 |
Propertytax | 4,720,363.62 | 4,650,467.91 |
Landusetax
Landusetax | 3,813,015.72 | 3,659,038.57 |
Vehicleandvesselusetax | 1,920.00 | 1,920.00 |
StampDuty | 1,046,929.90 | 1,151,693.01 |
Environmenttax | 194,011.91 | |
Other | 120,012.70 | 43,324.35 |
Total | 12,532,729.68 | 13,904,298.45 |
33.SellingExpense
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Officeexpenses | 15,226,739.67 | 16,073,409.43 |
Employee’sremuneration | 30,898,847.11 | 30,109,247.54 |
Salespromotionalexpense | 11,065,465.84 | 17,037,228.20 |
Threeguarantees | 59,459,243.39 | 28,911,112.28 |
Transportcharge | 7,875,890.07 | 7,199,785.26 |
Other | 2,470,880.79 | 2,966,930.66 |
Total | 126,997,066.87 | 102,297,713.37 |
34.AdministrativeExpense
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Officeexpenses | 13,620,335.64 | 14,110,423.74 |
Employee’sremuneration | 63,552,532.88 | 56,985,514.29 |
Depreciationandamortization | 12,141,787.46 | 13,290,918.09 |
Transportfees | 2,203,781.08 | 2,699,980.24 |
Repaircharge | 918,265.20 | 1,831,393.13 |
Safetyexpenses | 4,135,805.99 | 4,161,424.06 |
Other | 19,455,330.71 | 14,755,965.56 |
Total | 116,027,838.96 | 107,835,619.11 |
35.R&DExpense
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Directinputexpense
Directinputexpense | 44,893,971.91 | 51,378,796.38 |
Employee’sremuneration | 22,101,113.31 | 20,303,733.38 |
Depreciationandamortization | 2,812,179.10 | 2,833,926.92 |
EntrustedR&Dcharges | 700,000.00 | |
Other | 1,675,576.46 | 2,198,839.47 |
Total | 72,182,840.78 | 76,715,296.15 |
36.FinanceCosts
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Interestexpense | 4,553,608.46 | 2,119,903.67 |
Less:Interestincome | 4,665,445.23 | 7,613,535.50 |
Netforeignexchangegainsorlosses | -6,194,688.23 | 6,421,288.87 |
Other | 5,402,762.70 | -3,218,451.43 |
Total | -903,762.30 | -2,290,794.39 |
37.AssetImpairmentLoss
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Baddebtloss | 5,459,103.29 | 5,093,473.40 |
Lossoninventoryvaluation | 42,139,394.79 | 35,867,310.34 |
Other | -10,000,000.00 | |
Total | 37,598,498.08 | 40,960,783.74 |
38.OtherIncome
Unit:RMB
Resource | ReportingPeriod | SamePeriodoflastyear |
Governmentsubsidies | 6,291,685.65 | 8,456,560.85 |
Total | 6,291,685.65 | 8,456,560.85 |
Listofgovernmentsubsidiesrecordedintootherincome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | Relatedtoassets/income |
Subsidyforthetransformationandupgradingofindustrialandinformationsectors
Subsidyforthetransformationandupgradingofindustrialandinformationsectors | 150,000.00 | 2,070,000.00 | Relatedtoincome |
Trinitysubsidy | 2,300,000.00 | 1,696,000.00 | Relatedtoincome |
Subsidyforstabilizingposts | 992,136.63 | 1,355,883.23 | Relatedtoincome |
Subsidyforthespecialrectificationofcoalfiredboilers | 60,000.00 | Relatedtoincome | |
Subsidyforparticipatingintheinternationalbrandcampaign | 300,000.00 | Relatedtoincome | |
Commercialdevelopmentfund | 511,400.00 | 21,700.00 | Relatedtoincome |
Developmentfundsforsmallandmedium-sizedenterprises | 32,000.00 | Relatedtoincome | |
Relocationcompensation | 665,973.62 | 1,780,757.62 | Relatedtoassets |
R&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 398,400.00 | 398,400.00 | Relatedtoassets |
Industry-university-researchcooperationsubsidy | 200,000.00 | Relatedtoincome | |
OneBeltandOneRoadProjectFund | 30,000.00 | Relatedtoincome | |
Otherrewardsandsubsidies | 235,775.40 | 110,820.00 | Relatedtoincome |
Appropriationofothertechnologicalprojects | 808,000.00 | 631,000.00 | Relatedtoincome |
Total | 6,291,685.65 | 8,456,560.85 |
39.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Investmentincomefromholdingofavailableforsalefinancialassets | 7,607,870.00 | 10,709,750.99 |
Investmentincomefromdisposalofavailable-for-salefinancialassets | 104,824,084.63 | |
Investmentincomefromdisposaloffinancialproductsofsecuritiescompanies | 838,870.20 | 654,862.68 |
Gainsorlossesgeneratedfromre-measurementonstockrightsatfairvalueheldbeforethepurchasedateforthebusinesscombinationnotunderthesamecontrol | 1,751,203.43 | |
Total | 113,270,824.83 | 13,115,817.10 |
40.AssetDisposalIncome
Unit:RMB
Sources
Sources | ReportingPeriod | Sameperiodoflastyear |
Fixedassetdisposalincome | 662,151.89 | 1,373,236.33 |
Total | 662,151.89 | 1,373,236.33 |
41.Non-operatingIncome
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Insuranceindemnity | 1,179,518.37 | 1,453,805.83 | 1,179,518.37 |
Incomefrompenalty | 112,645.60 | 218,421.07 | 112,645.60 |
Incomegeneratedfromdisposalofcurrentassets | 502,640.00 | 303,456.00 | 502,640.00 |
Other | 144,191.79 | 1,007,709.34 | 144,191.79 |
Negativegoodwillgeneratedfrombusinesscombinationnotunderthesamecontrol | 19,924,486.12 | ||
Total | 1,938,995.76 | 22,907,878.36 | 1,938,995.76 |
42.Non-operatingExpense
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Donation | 210,000.00 | ||
Lossondisposalofnon-currentassets | 928,118.57 | 367,435.71 | 928,118.57 |
Ofwhich:lossondisposaloffixedassets | 928,118.57 | 367,435.71 | 928,118.57 |
Lossondisposalofcurrentassets | 539,665.92 | 7,047,215.23 | 539,665.92 |
Other | 6,434.00 | 168,007.06 | 6,434.00 |
Total | 1,474,218.49 | 7,792,658.00 | 1,474,218.49 |
43.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Thecurrentincometaxcalculatedasstipulatedinthetaxlawandrelevantregulations
Thecurrentincometaxcalculatedasstipulatedinthetaxlawandrelevantregulations | 13,721,905.60 | 2,030,954.40 |
Deferredincometaxexpense | -176,242.93 | -349,287.14 |
Total | 13,545,662.67 | 1,681,667.26 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod |
Profitbeforetaxation | 75,712,360.51 |
Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 11,356,854.08 |
Influenceofapplyingdifferenttaxratesbysubsidiaries | 362,218.33 |
Influenceofincometaxbeforeadjustment | 247,877.80 |
Influenceofnon-taxableincome | -1,301,828.54 |
Influenceofnon-deductablecosts,expensesandlosses | 4,128,125.59 |
InfluenceofdeductablelossofunrecognizeddeferredincometaxassetsatthebeginningoftheReportingPeriod | 23,218.23 |
InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | 2,295,717.17 |
Taxpreferencegeneratedfromeligibleexpense | -3,566,519.99 |
Incometaxexpense | 13,545,662.67 |
44.CashFlowStatement(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Subsidyandappropriation | 5,227,312.03 | 8,003,187.23 |
Otherintercoursesincash | 2,429,574.19 | 5,034,680.92 |
Interestincome | 4,665,445.23 | 7,665,735.50 |
Total | 12,322,331.45 | 20,703,603.65 |
(2)CashUsedinOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | SamePeriodoflastyear |
Sellingexpensepaidincash | 70,472,280.14 | 42,623,103.17 |
Administrativeexpensepaidincash
Administrativeexpensepaidincash | 44,119,952.70 | 42,894,223.56 |
Handlingcharge | 517,221.04 | 797,242.10 |
Other | 1,494,483.87 | 1,786,264.01 |
Total | 116,603,937.75 | 88,100,832.84 |
45.SupplementalInformationforCashFlowStatement(1)SupplementalInformationforCashFlowStatement
Unit:RMB
Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
Netprofit | 62,166,697.84 | 47,137,232.47 |
Add:Provisionforimpairmentofassets | 37,598,498.08 | 40,960,783.74 |
Depreciationoffixedassets,ofoil-gasassets,ofproductivebiologicalassets | 86,806,660.70 | 90,190,434.30 |
Amortizationofintangibleassets | 5,248,080.61 | 6,018,505.30 |
Amortizationoflong-termdeferredexpenses | ||
Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby"-") | -662,151.89 | -1,373,236.33 |
Lossesonthescrappingoffixedassets(gainsby“-”) | 928,118.57 | 367,435.71 |
Lossesonthechangesinfairvalue(gainsby“-”) | ||
Financialexpenses(gainsby"-") | 4,553,608.46 | 2,119,903.67 |
Investmentlosses(gainsby"-") | -113,270,824.83 | -13,115,817.10 |
Decreaseindeferredincometaxassets(increaseby"-") | 27,131.10 | -95,724.39 |
Increaseindeferredincometaxliabilities(decreaseby“-”) | -203,374.03 | -253,562.75 |
Decreaseininventory(increaseby"-") | -91,846,479.01 | -16,207,075.64 |
Decreaseinaccountsreceivablefromoperatingactivities(increaseby"-") | 232,739,906.78 | -255,524,512.29 |
Increaseinpayablesfromoperatingactivities(decreaseby"-") | 63,742,812.33 | 15,592,612.02 |
Other | -14,009,157.82 | -37,486,258.10 |
Netcashflowsgeneratedfromoperatingactivities | 273,819,526.89 | -121,669,279.39 |
2.Investingandfinancingactivitiesthatdonot | -- | -- |
involvingcashreceiptsandpayment:
involvingcashreceiptsandpayment: | ||
Debttransferredascapital | ||
Convertiblecorporatebondduewithinoneyear | ||
Fixedassetsfromfinancinglease | ||
3.Netincreaseincashandcashequivalents | -- | -- |
Closingbalanceofcash | 687,079,639.59 | 325,263,654.43 |
Less:Openingbalanceofcash | 325,263,654.43 | 583,278,129.09 |
Add:Closingbalanceofcashequivalents | ||
Less:Openingbalanceofcashequivalents | ||
Netincreaseincashandcashequivalents | 361,815,985.16 | -258,014,474.66 |
(2)CashandCashEquivalents
Unit:RMB
Item | Endingbalance | Beginningbalance |
I.Cash | 687,079,639.59 | 325,263,654.43 |
Including:Cashonhand | 441,363.70 | 466,356.31 |
Bankdepositondemand | 684,620,907.41 | 324,781,747.27 |
Othermonetarycapitalondemand | 2,017,368.48 | 15,550.85 |
Accountsdepositedinthecentralbankavailableforpayment | ||
Depositsinotherbanks | ||
Accountsofinterbank | ||
II.Cashequivalents | ||
Ofwhich:bondinvestmentexpiredwithinthreemonths | ||
III.Endingbalanceofcashandcashequivalents | 687,079,639.59 | 325,263,654.43 |
Ofwhich:cashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
46.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
Item | Endingcarryingvalue | Reasonforrestriction |
Monetarycapital | 113,880,397.10 | AscashdepositforbankacceptancebillandL/C |
Housesandbuildings | 9,151,848.69 | Mortgagedforborrowingsfrombanks |
Landuseright | 1,005,328.00 | Mortgagedforborrowingsfrombanks |
Machineryequipment | 51,191,810.97 | Mortgagedforborrowingsfrombanks |
Total
Total | 175,229,384.76 | -- |
47.ForeignCurrencyMonetaryItems(1)ForeignCurrencyMonetaryItems
Unit:RMB
Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
Monetarycapital | -- | -- | |
Ofwhich:USD | 8,960,950.31 | 6.8632 | 61,500,794.17 |
HKD | 254,028.39 | 0.8762 | 222,579.68 |
SGD | 54,427.95 | 5.0062 | 272,477.20 |
JPY | 52,511,025.00 | 0.061887 | 3,249,749.80 |
Accountsreceivable | -- | -- | -- |
Ofwhich:USD | 8,969,144.29 | 6.8632 | 61,557,031.09 |
Accountspayable | -- | -- | -- |
Ofwhich:USD | 302.60 | 6.8632 | 2,076.80 |
48.GovernmentSubsidy(1)BasicInformationonGovernmentSubsidy
Unit:RMB
Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
Subsidyforthetransformationandupgradingofindustrialandinformationsectors | 150,000.00 | Otherincome | 150,000.00 |
Trinitysubsidy | 2,300,000.00 | Otherincome | 2,300,000.00 |
Subsidyforstabilizingposts | 992,136.63 | Otherincome | 992,136.63 |
Commercialdevelopmentfund | 511,400.00 | Otherincome | 511,400.00 |
Relocationcompensation | 665,973.62 | Otherincome | 665,973.62 |
R&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 398,400.00 | Otherincome | 398,400.00 |
Industry-university-researchcooperationsubsidy | 200,000.00 | Otherincome | 200,000.00 |
OneBeltandOneRoadProjectFund | 30,000.00 | Otherincome | 30,000.00 |
Otherrewardsandsubsidies | 235,775.40 | Otherincome | 235,775.40 |
Appropriationofothertechnologicalprojects
Appropriationofothertechnologicalprojects | 808,000.00 | Otherincome | 808,000.00 |
AppropriationforR&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 646,800.00 | Deferredincome | |
Nationalmajorspecialappropriation | 28,770,000.00 | Deferredincome | |
Relocationcompensation | 20,511,684.84 | Deferredincome | |
AppropriationorresearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 10,000,000.00 | Deferredincome |
(2)ReturnofGovernmentSubsidy□Applicable√NotapplicableVIII.EquityinOtherEntities1.EquityinSubsidiary
(1)Subsidiaries
Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
Directly | Indirectly | |||||
ChangchaiWanzhouDieselEngineCo.,Ltd. | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 99.00% | 1.00% | Set-up |
ChangzhouHoushengInvestmentCo.,Ltd. | ChangzhouCity | ChangzhouCity | Service | 100.00% | Set-up | |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 70.00% | 25.00% | Set-up |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | ChangzhouCity | ChangzhouCity | Industry | 100.00% | Combinationnotunderthesamecontrol |
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
Name
Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 447,173.52 | 19,549,806.55 | |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 5.00% | -301,849.72 | 68,673.56 |
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. | 44,946,886.20 | 26,693,776.10 | 71,640,662.30 | 20,766,145.92 | 2,000,000.00 | 22,766,145.92 | 51,974,844.72 | 27,420,469.36 | 79,395,314.08 | 29,638,731.50 | 2,000,000.00 | 31,638,731.50 |
ChangzhouChangchaiHoushengAgricult | 35,776,302.79 | 625,680.72 | 36,401,983.51 | 35,028,512.30 | 35,028,512.30 | 38,597,424.23 | 346,526.83 | 38,943,951.06 | 31,533,485.51 | 31,533,485.51 |
uralEquipmentCo.,Ltd.
Unit:RMB
uralEquipmentCo.,Ltd.
Name
Name | ReportingPeriod | Sameperiodoflastyear | ||||||
Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 46,653,660.46 | 1,117,933.80 | 1,117,933.80 | 64,348,508.86 | 1,759,213.66 | 1,759,213.66 | 6,032,875.55 | |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 17,505,784.08 | -6,036,994.34 | -6,036,994.34 | 15,715,166.92 | 44,885.51 | 44,885.51 | -10,230,832.08 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018,newpartnerswereadded.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhuandTongYinxin.InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.
IX.TheRiskRelatedtoFinancialInstruments
ThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.
ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRisk
Creditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.
ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.
TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.
(II)LiquidityRisk
Liquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.
TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.
(III)MarketRisk
Marketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,including:foreignexchangeraterisk,interestraterisk.
1.InterestRateRisk
Interestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRisk
Foreignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.X.TheDisclosureofFairValue1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
Item
Item | Endingfairvalue | |||
Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
(I)Financialassetsatfairvaluethroughprofitorloss | ||||
1.Tradingfinancialassets | ||||
(1)Debtinstrumentinvestment | ||||
(2)Equityinstrumentinvestment | ||||
(3)Derivativefinancialassets | ||||
2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
(1)Debtinstrumentinvestment | ||||
(2)Equityinstrumentinvestment | ||||
(II)Available-for-salefinancialassets | 370,940,000.00 | 370,940,000.00 | ||
(1)Debtinstrumentinvestment | ||||
(2)Equityinstrumentinvestment | 370,940,000.00 | 370,940,000.00 | ||
(3)Other | ||||
(III)Investmentproperty | ||||
1.Landuserightforlease | ||||
2.Buildingsleasedout | ||||
3.Landuserightheldandplantobetransferredonceappreciating | ||||
(IV)Livingassets | ||||
1.Consumptivelivingassets | ||||
2.Productivelivingassets |
Totalassetsconsistentlymeasuredbyfairvalue
Totalassetsconsistentlymeasuredbyfairvalue | 370,940,000.00 | 370,940,000.00 | ||
(V)Tradingfinancialliabilities | ||||
Ofwhich:issuedtradingbonds | ||||
Derivativefinancialliabilities | ||||
Other | ||||
(VI)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
(1)Held-to-saleassets | ||||
Totalassetsinconsistentlymeasuredbyfairvalue | ||||
Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Theavailable-for-salefinancialassetsmeasuredatfairvalueoftheCompanywereshareswiththeclosingpriceasthebasisoffairvaluecalculationatperiod-end.XI.RelatedPartyandRelated-partyTransactions1.InformationRelatedtotheCompanyastheParentoftheCompany
Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
Changzhou | Changzhou | Investmentand | RMB1.2billion | 30.43% | 30.43% |
InvestmentGroupCo.,Ltd.
InvestmentGroupCo.,Ltd. | operationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc. |
Notes:informationontheCompanyastheparent
On22November2018,ChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontransferredall170,845,236sharesoftheCompany(accountingfor30.43%ofthetotalsharecapitaloftheCompany)toChangzhouInvestmentGroupCo.,Ltd.forfree.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),boththeCompanyandChangzhouInvestmentGroupCo.,Ltd.areenterpriseswhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,afterthesharertransfer,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.
ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.2.SubsidiariesoftheCompanyRefertoNoteIXfordetails.3.InformationonOtherRelatedParties
Name | RelationshipwiththeCompany |
SynergeticInnovationFundManagementCo.,Ltd. | ThedirectoroftheCompanyservesastheseniormanagementofthecompany |
4.Related-partyTransactions
Therewasnorelated-partytransactionduringtheReportingPeriod.
XII.CommitmentsandContingency
1.SignificantCommitmentsAsof31December2018,therewasnosignificantcommitmentfortheCompanytodisclose.2.Contingency(1)SignificantContingencyonBalanceSheetDatePreviouslitigationscontinuingtotheReportingPeriodtheCompanyinvolved:
Nameofdefendant
Nameofdefendant | Dateofaccepted | Nameofthelitigationorarbitrationinstitutions | Amountinvolved(RMB’0,000) | Remark |
ShandongHongliGroupCo.,Ltd. | 27June2001 | ChangzhouIntermediatePeople'sCourt | 1,436.00 | Underthebankruptcyandliquidation |
Notes:
AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulativelyRMB14.36milliontotheCompany.TheCompanysuedtoChangzhouIntermediatePeople’sCourtin2001andsuedforcompulsoryexecutioninApril2002.Currently,thedefendanthasstartedthebankruptcyprocedure.Theaforesaidpaymenthasarrangedforthefullprovisionforbaddebts.XIII.EventsafterBalanceSheetDate1.ProfitDistribution
Unit:RMB
Profitsordividendstobedistributed | 14,034,358.2 |
Profitsordividendsannouncedtobedistributedaftertheapproval |
XVI.OtherSignificantEvents1.SegmentInformation(1)IfthereWasnoReportableSegment,ortheTotalAmountofAssetsandLiabilitiesofEachReportableSegmentCouldnotBeReported,RelevantReasonsShallBeClearlyStated
DuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductcommonmanagement,didnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
(2)OtherNotes
2.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-making
Asoftheapprovalissuedateoffinancialstatements,theCompanydidnotcompletetheliquidationproceduresof2018annualenterpriseincometax.XV.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent1.NotesReceivableandAccountsReceivable
Item
Item | Endingbalance | Beginningbalance |
Notesreceivable | 490,519,795.91 | 711,474,345.57 |
Accountsreceivable | 300,357,283.81 | 319,887,051.70 |
Total | 790,877,079.72 | 1,031,361,397.27 |
(1)NotesPayable
1)NotesReceivableListedbyCategory
Unit:RMB
Item | Endingbalance | Beginningbalance |
Bankacceptancebill | 490,519,795.91 | 711,474,345.57 |
Total | 490,519,795.91 | 711,474,345.57 |
Unit:RMB
2)ThereWasNoNotesReceivablePledgedbytheCompanyatthePeriod-end3)NotesReceivableEndorsedbytheCompanyorDiscountedandnotdueontheBalanceSheetDateatthePeriod-end
Unit:RMB
Item | DerecognizedAmountattheperiod-end | Non-derecognizedamountattheperiod-end |
Bankacceptancebill | 379,379,946.33 | |
Total | 379,379,946.33 |
4)ThereWasNoNotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
(2)AccountsReceivable
1)AccountsReceivableClassifiedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance |
Carryingamount
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 32,008,110.06 | 6.12% | 28,990,420.19 | 90.57% | 3,017,689.87 | 35,274,603.67 | 6.52% | 30,401,000.85 | 86.18% | 4,873,602.82 |
Accountsreceivablewithdrawalofbaddebtprovisionofbycreditriskscharacteristics: | 487,566,507.88 | 93.15% | 190,226,913.94 | 39.02% | 297,339,593.94 | 505,142,981.60 | 93.30% | 190,129,532.72 | 37.64% | 315,013,448.88 |
Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 3,815,656.95 | 0.73% | 3,815,656.95 | 100.00% | 974,986.14 | 0.18% | 974,986.14 | 100.00% | ||
Total | 523,390,274.89 | 100.00% | 223,032,991.08 | 42.61% | 300,357,283.81 | 541,392,571.41 | 100.00% | 221,505,519.71 | 40.91% | 319,887,051.70 |
Accountsreceivablewithsinglesignificantamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod√Applicable□notapplicable
Unit:RMB
Accountsreceivable(byunits) | Endingbalance | |||
Accountsreceivable | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
Customer1 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
Customer2
Customer2 | 1,161,700.00 | 580,850.00 | 50.00% | Expectedtodifficultlyrecover |
Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
Customer4 | 2,484,497.34 | 2,177,910.92 | 87.66% | Expectedtodifficultlyrecover |
Customer5 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
Customer6 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
Customer7 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
Customer8 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer9 | 1,679,109.54 | 1,679,109.54 | 100.00% | Difficulttorecover |
Customer10 | 1,470,110.64 | 1,470,110.64 | 100.00% | Expectedtodifficultlyrecover |
Customer11 | 3,803,039.48 | 1,672,786.03 | 43.99% | Expectedtodifficultlyrecover |
Total | 32,008,110.06 | 28,990,420.19 | -- | -- |
Inthegroups,accountsreceivableadoptedaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□notapplicable
Unit:RMB
Aging | Endingbalance | ||
Accountsreceivable | Baddebtprovision | Withdrawalproportion | |
Subentrywithin1year | |||
Subtotalofwithin1year | 289,548,156.74 | 5,790,963.13 | 2.00% |
1to2years | 12,197,754.24 | 609,887.71 | 5.00% |
2to3years | 1,376,768.52 | 206,515.28 | 15.00% |
3to4years | 929,020.59 | 278,706.18 | 30.00% |
4to5years | 434,915.38 | 260,949.23 | 60.00% |
Over5years | 183,079,892.41 | 183,079,892.41 | 100.00% |
Total | 487,566,507.88 | 190,226,913.94 |
Inthegroups,accountsreceivableadoptedbalancepercentagemethodtowithdrawbaddebtprovision:
□Applicable√Notapplicable(2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB5,902,476.58;theamountofthereversedorcollectedpartduringtheReportingPeriodwasofRMB4,375,005.21.
(3)ThereWasNoParticularsoftheActualVerificationofAccountsReceivableduringtheReportingPeriod(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsParty
Attheperiod-end,thetotaltop5oftheendingbalanceoftheaccountsreceivablecollectedaccordingtoarrearspartywasRMB206,150,555.84,accountingfor39.39%ofthetotalendingbalanceofaccountsreceivable.TheendingbalanceofbaddebtprovisionwithdrawnwasRMB4,123,011.12.2.OtherReceivables
Item
Item | Endingbalance | Beginningbalance |
Otherreceivables | 21,681,331.85 | 11,798,211.40 |
Total | 21,681,331.85 | 11,798,211.40 |
(1)OtherReceivables
1)OtherReceivablesDisclosedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Otherreceivableswithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,853,188.02 | 5.46% | 2,853,188.02 | 100.00% | 2,853,188.02 | 6.83% | 2,853,188.02 | 100.00% | ||
Otherreceivableswithdrawnbaddebtprovisionaccordingtocreditriskscharacteristics | 47,221,087.70 | 90.41% | 25,539,755.85 | 54.09% | 21,681,331.85 | 36,815,664.59 | 88.14% | 25,017,453.19 | 67.95% | 11,798,211.40 |
Otherreceivableswithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued
Otherreceivableswithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 2,158,775.14 | 4.13% | 2,158,775.14 | 100.00% | 2,099,382.02 | 5.03% | 2,099,382.02 | 100.00% | ||
Total | 52,233,050.86 | 100.00% | 30,551,719.01 | 58.49% | 21,681,331.85 | 41,768,234.63 | 100.00% | 29,970,023.23 | 71.75% | 11,798,211.40 |
Otherreceivableswithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod√Applicable□Notapplicable
Unit:RMB
Otherreceivables(unit) | Endingbalance | |||
Otherreceivables | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
ChangchaiGroupImp.&Exp.Co.,Ltd. | 2,853,188.02 | 2,853,188.02 | 100.00% | Difficulttorecover |
Total | 2,853,188.02 | 2,853,188.02 | -- | -- |
Amongthesegroups,otherreceivablesadoptingaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
Aging | Endingbalance | ||
Otherreceivables | Baddebtprovision | Withdrawalproportion | |
Subentrywithin1year | |||
Subtotalwithin1year | 20,056,261.64 | 401,125.23 | 2.00% |
1to2years | 1,795,421.38 | 89,771.07 | 5.00% |
2to3years | 269,006.89 | 40,351.03 | 15.00% |
3to4years | 96,930.77 | 29,079.23 | 30.00% |
4to5years | 60,094.33 | 36,056.60 | 60.00% |
Over5years | 24,943,372.69 | 24,943,372.69 | 100.00% |
Total | 47,221,087.70 | 25,539,755.85 |
Amongthesegroups,otherreceivablesadoptingbalancepercentagemethodtowithdrawbaddebtprovision□Applicable√NotapplicableAmongthesegroups,otherreceivablesadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable2)BadDebtProvisionWithdrawal,ReversedorRecoveredintheReportingPeriodThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB581,695.78;theamountofthereversedorcollectedpartduringtheReportingPeriodwasofRMB0.00.3)ThereWasNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod4)OtherReceivablesClassifiedbyNature
Unit:RMB
Nature
Nature | Endingcarryingamount | Beginningcarryingamount |
Cashdeposit&Margin | 4,200.00 | 4,200.00 |
Intercoursefundsamongunits | 36,267,607.16 | 25,497,534.34 |
Pettycashandborrowingsbyemployees | 596,876.87 | 912,133.46 |
Other | 15,364,366.83 | 15,354,366.83 |
Total | 52,233,050.86 | 41,768,234.63 |
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceoftotalotherreceivables% | Endingbalanceofbaddebtprovision |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Intercoursefunds | 10,000,000.00 | Within1year | 19.14% | 200,000.00 |
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 8,165,948.87 | Within1year | 15.63% | 163,318.98 |
ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 5.63% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 5.46% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 3.11% | 1,626,483.25 |
Total | -- | 25,585,620.14 | -- | 48.97% | 7,782,990.25 |
3.Long-termEquityInvestment
Unit:RMB
Item
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserve | Carryingvalue | Carryingamount | Depreciationreserve | Carryingvalue | |
Investmenttosubsidiaries | 241,752,730.03 | 241,752,730.03 | 231,752,730.03 | 231,752,730.03 | ||
Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
Total | 241,796,912.53 | 44,182.50 | 241,752,730.03 | 231,796,912.53 | 44,182.50 | 231,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
Investee | Beginningbalance | Increase | Decrease | Endingbalance | Depreciationreservewithdrawn | Endingbalanceofdepreciationreserve |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | ||||
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | ||||
ChangzhouHoushengInvestmentCo.,Ltd. | 30,000,000.00 | 10,000,000.00 | 40,000,000.00 | |||
ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 7,000,000.00 | 7,000,000.00 | ||||
ChangzhouFujiChangchaiRobin | 47,286,230.03 | 47,286,230.03 |
GasolineEngineCo.,Ltd.
GasolineEngineCo.,Ltd. | ||||
Total | 231,752,730.03 | 10,000,000.00 | 241,752,730.03 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
Investee | Beginningbalance | Increase/decrease | Endingbalance | Endingbalanceofdepreciationreserve | |||||||
Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
I.Jointventures | |||||||||||
II.Associatedenterprises | |||||||||||
BeijingTsinghuaXingyeIndustrialInvestmentManagementCo.,Ltd. | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
Subtotal | 44,182.50 | 44,182.50 | 44,182.50 | ||||||||
Total | 44,182.50 | 44,182.50 | 44,182.50 |
(3)OtherNotes
4.OperatingRevenueandCostofSales
Unit:RMB
Item
Item | ReportingPeriod | Sameperiodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
Mainoperations | 1,929,864,957.32 | 1,659,272,787.45 | 2,208,546,755.61 | 1,913,570,161.64 |
Otheroperations | 38,862,108.04 | 30,434,073.18 | 27,259,235.38 | 18,109,162.04 |
Total | 1,968,727,065.36 | 1,689,706,860.63 | 2,235,805,990.99 | 1,931,679,323.68 |
5.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Investmentincomefromholdingofavailable-for-salefinancialassets | 7,597,950.00 | 10,709,750.99 |
Investmentincomefromdisposalofavailable-for-salefinancialassets | 104,866,770.49 | |
Total | 112,464,720.49 | 10,709,750.99 |
XVI.SupplementaryMaterials1.ItemsandAmountsofNon-recurringProfitorLoss√Applicable□Notapplicable
Unit:RMB
Item | Amount | Note |
Gains/lossesonthedisposalofnon-currentassets | -265,966.68 | |
Governmentgrantsrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 6,291,685.65 | |
Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentgainsandlosses | 938,737.87 | |
Gain/lossfromchangeoffairvalueoftransactionalassetsandliabilities,andinvestmentgainsfromdisposaloftransactionalfinancialassetsandliabilitiesandavailable-for-salefinancial | 105,672,874.83 | Saleofthe20,000,000BankofJiangsusharesintheReportingPeriod |
assets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses
assets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | ||
Reverseofbaddebtprovisionofaccountreceivableindividuallyconductingimpairmenttest | 10,000,000.00 | |
Othernon-operatingincomeandexpensesotherthantheabove | 1,392,895.84 | |
Less:Incometaxeffects | 18,670,371.98 | |
Non-controllinginterestseffects | 5,285.36 | |
Total | 105,354,570.17 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem?Applicable√Notapplicable2.ReturnonEquityandEarningsPerShare
ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
EPS-basic | EPS-diluted | ||
NetprofitattributabletoordinaryshareholdersoftheCompany | 2.84% | 0.11 | 0.11 |
NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -1.99% | -0.08 | -0.08 |
PartXIIDocumentsAvailableforReference
1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment;
2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm;
3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod;and
4.TheAnnualReportdisclosedonotherstockmarkets.
Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.
ThisAnnualReportanditsabstracthavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
TheBoardofDirectorsChangchaiCompany,Limited
11April2019