CHANGCHAICOMPANY,LIMITED
INTERIMREPORT2024
August2024
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.XieGuozhong,theCompany’slegalrepresentativeandGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredaspromisestoinvestors.Investorsandotherstakeholdersshallbesufficientlyawareoftheriskandshalldifferentiatebetweenplans/forecastsandpromises.TheCompanyhasdescribedindetailtherisksitmightfacein“XRisksFacingtheCompanyandCountermeasures”in“PartIIIManagementDiscussionandAnalysis”herein.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 10
PartIVCorporateGovernance ...... 27
PartVEnvironmentalandSocialResponsibility ...... 28
PartVISignificantEvents ...... 31
PartVIIShareChangesandShareholderInformation ...... 36
PartVIIIPreferredShares ...... 41
PartIXBonds ...... 42
PartXFinancialStatements ...... 43
DocumentsAvailableforReference
(I)ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment(accountantincharge).(II)TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonthewebsitedesignatedbytheCSRCduringtheReportingPeriod.(III)TheInterimReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompany.ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Definitions
Term
| Term | Definition |
| “Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HorizonInvestment | ChangzhouHorizonInvestmentCo.,Ltd. |
| HorizonAgriculturalEquipment | ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
| ZhenjiangSiyang | ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2024to30June2024 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname
| Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr.(ifany) | 苏常柴 | ||
| CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
| Abbr.(ifany) | CHANGCHAICO.,LTD. | ||
| Legalrepresentative | XieGuozhong | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | HeJianjiang | |
| Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
| Tel. | （86）519-68683155 | |
| Fax | （86）519-86630954 | |
| Emailaddress | cchjj@changchai.com |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2023AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√Notapplicable
Thewebsiteofthestockexchange,mediaandotherwebsiteswheretheCompany’speriodicreportsaredisclosed,aswellastheplaceforkeepingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2023AnnualReport.
3.OtherRelevantInformationIndicatebytickmarkwhetheranychangeoccurredtootherrelevantinformationintheReportingPeriod.
□Applicable√Notapplicable
IVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.?Yes√No
H12024
| H12024 | H12023 | Change(%) | |
| Operatingrevenue(RMB) | 1,495,909,152.63 | 1,350,517,639.85 | 10.77% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 50,097,655.15 | 131,937,324.66 | -62.03% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 59,846,264.97 | 5,825,543.98 | 927.31% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -161,814,513.00 | -104,796,816.75 | —— |
| Basicearningspershare(RMB/share) | 0.0710 | 0.1870 | -62.03% |
| Dilutedearningspershare(RMB/share) | 0.0710 | 0.1870 | -62.03% |
| Weightedaveragereturnonequity(%) | 1.47% | 3.93% | -2.46% |
| 30June2024 | 31December2023 | Change(%) | |
| Totalassets(RMB) | 5,329,179,139.07 | 5,159,394,958.92 | 3.29% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 3,372,290,234.40 | 3,398,946,911.23 | -0.78% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√Notapplicable
NodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.VIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Amount | Note |
| Gainsandlossesfromthedisposalofnoncurrentassets(includingtheoffsettingportionofimpairmentprovisionsalreadymadeforassets) | 408,245.54 | |
| Governmentgrantsrecognisedincurrentprofitorloss(exclusiveofthosethatarecloselyrelatedtotheCompany'snormalbusinessoperationsandgiveninaccordancewithdefinedcriteriaandincompliancewithgovernmentpolicies,andhaveacontinuingimpactontheCompany'sprofitorloss) | 193,085.00 | GovernmentgrantsrecognisedincurrentprofitorlosswereRMB1,953,702.37,andtheamountrecognisedincurrentprofitorlossthatwasexclusiveofdeferredincomewasRMB1,704,864.73. |
| Gainorlossonfair-valuechangesinfinancialassetsandliabilitiesheldbyanon-financialenterprise,aswellasondisposaloffinancialassetsandliabilities(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -18,684,594.97 | ThecompanyreceivedstockdividendsfromJiangsuBankCo.,Ltd.heldbythecompany,thewealthmanagementincomegeneratedfromcashmanagementandthedecreaseinthefairvalueofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,andKailongHighTechnologyCo.,Ltd. |
| Non-operatingincomeandexpenseotherthantheabove | 803,200.60 | |
| Less:Incometaxeffects | -7,709,542.20 | |
| Non-controllinginterestseffects(netoftax) | 178,088.19 | |
| Total | -9,748,609.82 |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysisIPrincipalActivityoftheCompanyintheReportingPeriod
1.IndustryreviewWeareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasharvesters,tractors,plantprotectionmachinery,smallengineeringmachinery,andshipbornemachinery.Intermsofpolicies,thenationalstrategyof"MadeinChina2025"hastheR&Dandindustrializationofefficientinternalcombustionengineselevatedtothenationalstrategiclevel,andnewpoliciesonlarge-scaleequipmentrenewalandtrade-inofconsumergoodswillfurtherpromotethedevelopmentofmarketandscienceandtechnology.Nationalregulationspertainingtointernalcombustionenginetechnologyhaveconsiderablytightened,withanotableemphasisonenergyconservation,emissionsreduction,andreliability,therebymakingthemfocalpointsofindustrialdevelopment.Therigorousenforcementofnationalemissionstandardsexpeditesthedevelopmentanddeploymentofcoretechnologiesandcrucialcomponentswithininternalcombustionengines.Theexplorationanddisseminationofefficientandcleaninternalcombustionengineproductsdrivethewidespreadadoptionofindependent-brandelectronicfuelinjectionsystems,high-efficiencysuperchargers,andadvancedafter-treatmentsolutions.Inrecentyears,theissuanceoftheNo.1Documentbythecentralgovernmenthasunderscoreditscommitmenttoelevatingtheimportanceofagricultureandbolsteringagriculturaldevelopment.In2024,theNo.1Documentoutlineda"roadmap"tovigorouslyandeffectivelypropelcomprehensiveruralrevitalization.Tostimulatedemandthroughindustrialpolicies,itisimperativetoenhancetheresearchandapplicationproficiencyofagriculturalmachineryandequipment,promotetheinnovationframeworkforcutting-edgeagriculturalmachinery,vigorouslyaddressthedeficienciesinagriculturalmachineryandequipment,bolstertheinformation-basedcapabilitiesandserviceprovisionofagriculturalmachineryandequipment,advancetheintelligenceandautomationlevelsofagriculturalmachinery,reinforcethesynergybetweentechnologyandreform,andintensifyeffortsincoretechnologyresearchanddevelopment,allofwhichwilldelineatethetrajectoryforagriculturalmodernization.Asaresultofthenationalpolicyofsubsidiesforthepurchaseofmachinery,industrialdevelopmentpoliciesandtheimpactofenvironmentalregulationsandrequirements,overallmarketdemandforsingle-cylinderdieselenginesforsmallagriculturalmachineryremainedlow,causingintensecompetition.Despitethegradualincreaseintheuseofsingle-cylinderenginesinthenon-agriculturalsectors,overallsalesvolumeremainedonadownwardpath.Fromthepointofviewofthedevelopmentoftheindustryasawhole,thesalesoflow-qualityproductscontinuedtoweaken,andhigh-qualityproductscontinuedtotakeovermoremarketshare,whichpromotedthesustainabledevelopmentoftheindustryasawhole.Withthefull-scaleimplementationofNationalEmissionStandardIVforNon-roadVehiclesandtheevolvingmarketdynamics,thepaceofdevelopmentforhigh-endagriculturalmachineryproductsinChinahasaccelerated.High-endandintelligenttrendsofagriculturalmachinerycatalyzedafreshwaveofstructuraltransformationwithintheagriculturalmachineryindustry.Thesectorhasenteredaphaseofprofoundadjustmentspropelledbyoptimizationandupgrading,withagriculturalmachineryenterprisesconcurrentlyembarkingonatrajectoryofhigh-qualitydevelopment,hasteningtheintegrationandadvancementofadvancedtechnologiesencompassingenergyconservationandemissions
reduction,intelligentmanufacturing,andtheenhancementofproductqualityandefficiency.Asnewopportunitiesfordevelopmentariseinthenationalstrategicdeploymentandtheacceleratedtransformationandupgradingprocess,theagriculturalmachinerymarkethasabroadspaceforgrowth.
2.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Ourproductsaremainlyusedinagriculturalmachinery,smallengineeringmachinery,generatorsetsandshipbornemachineryandotherfieldscloselyrelatedtopeople'slivelihood.IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.
3.MainProductsoftheCompanyOurmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
Mainproducts
| Mainproducts | Graphicdisplay | Productdescription | Productfeatures | Applicationfields |
| Dieselengine | Ourdieselengineproductsincludesingle-cylinderdieselenginesandmulti-cylinderengines,coveringpowerrangefrom3kWto129kW,andcylinderdiametersfrom65mmto135mm.Besidessaleindomesticmarket,ourdieselenginesaresoldtoSoutheastAsia,SouthAmerica,theMiddleEastandAfrica. | Highpower,lowoilconsumption,lownoise,compactstructure,lowemission,goodreliability | Agriculturalmachinery,constructionmachinery,generatorsets,shipbornemachinery | |
| Gasolineengine | Ourgasolineenginesaremainlygeneral-purposesmallgasolineengines,coveringthepowerrangefrom1.5kWto9.0kW.Besidessaleindomesticmarket,ourgasolineenginesaresoldtoSoutheastAsia,theMiddleEast,EuropeandAmerica,Africa,Japanandothercountriesandregions. | Simplestructure,goodreliability,easymaintenance | Agriculturalmachinery,smallconstructionmachinery |
4.MajorBusinessModels
(1)R&DmodelWehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedonmarketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologydepartmentconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability.
(2)PurchasingmodelWeadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplanandtheproductionplansintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchase
accordingtosuchdemand.Meanwhile,thepurchasingdepartmentmakesaplantoguidepartsprocurementaccordingtothesalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.
(3)ProductionmodelWeadoptthe"make-to-order"productionmanagementmodel.Thesalesdepartmentmakessalesplansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedbackofexistingcustomers'purchasingintentions.TheCompany'sproductiondepartmentmakestheproductionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality.
(4)SalemodelWeadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory,andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.
5.TheCompany'spositioninthemarketWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsofChinaInternalCombustionEngineIndustryAssociation(CICEIA),asthelargestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
6.KeyPerformanceDrivers
(1)NationalpolicydriverInrecentyears,theNo.1Documentissuedbythecentralgovernmenthasdemonstratedthegovernment'sintentiontoattachgreaterimportancetoagricultureandstrengthenagriculturaldevelopment,soastopromotethedevelopmentofagricultureandruraleconomyandsociety,andstrengthenthesupportofagriculturaltechnologyandequipment.China'sagriculturalmachineryandequipmentindustrylayouthasalwaysbeenbasedonthemainlineofinnovation,focusedoncoretechnology,strengthenedtheconstructionofinnovationcapacity,andstrovetomakeupfortheshortcomingsandweaknesses.ThefullimplementationofNationalEmissionStandardIVandthehigh-endandintelligenttrendsofagriculturalmachineryhavelettheagriculturalmachineryindustrytowardsanewstageofdevelopment.TheActionPlanforPromotingLarge-scaleEquipmentRenewalsandConsumerGoodsTrade-insin2024clarifiesthatoldagriculturalandindustrialmachinerywillberenewed,subsidypolicieswillbecontinuouslyimplementedforagriculturalmachineryscrappingandrenewal,thescrappingandrenewalofoldagriculturalmachinerywillbepromoted,andthestructuraladjustmentofagriculturalmachinerywillbeaccelerated.Theaccelerationofthereplacementprocessofoldequipmentofengineeringmachineryhascreatedafavourablepolicyenvironmentfortheapplicationofinternalcombustionengines.
(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithourowninternalcombustionengineassemblydepartment.OurcastingmanufacturingdepartmentandinternalcombustionengineassemblydepartmentworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborativeproduction,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduce
processflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargainingpower.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines.
(3)StableandefficientR&DteamWehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.
(4)Well-knownbrandwithmanywell-knowncustomersTheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Ourdieselandgasolineengines,aspowersourcesofagriculturalmachinery,andconstructionmachinery,showexcellentperformanceinpowerrange,reliability,powerperlitre,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnershiptimeexceeding15years.ManymainengineplantcustomersoftheCompanyarewell-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket.
7.PerformanceoftheCompany'sPrincipalOperationsintheReportingPeriodInthefirsthalfof2024,themacroeconomymaintainedamoderaterecoveryandsteadyprogressoverall.ThejointinfluenceofsuchfactorsasthefullentryofproductsthatmeettheNationalEmissionStandardIVintothemarket,thedeclineinoperatingincome,andtheadjustmentofsubsidiesmademarketcompetitionincreasinglyfierce,andthereforethetraditionalagriculturalmachineryindustryisslowingdown.Meanwhile,newmarketandindustrysegmentsmaintainedgrowthmomentum,accompaniedbytheincreasingdemandforhigh-endproductsandthetransformationoftheagriculturalmachineryindustrytowardshigh-qualitydevelopment.Centringarounditsannualpoliciesandobjectives,theCompanyasawholefocusedoncoreareassuchasproduct,marketandquality,andrespondedtochallengesthroughprecisestrategies,thusachievingsteadygrowthofthemainbusiness.DuringtheReportingPeriod,theCompanysoldapproximately325,400dieselengines,gasolineenginesandgeneratorsets,generatingtotalsalesrevenueofRMB1,496million,anincreaseof10.77%yearonyear.Intermsofproductdevelopmentandapplication,theCompanyintensifiedeffortsonthedevelopmentandapplicationoflightenginesinsegmentedfields,completedthesupportingroadtestforCC12dieselengineforthree-wheeledmotorcycle,andmadesteadyprogressintheinstallationandapplicationaswellastestingandverificationofmulti-cylinderproductsthatmeettheNationalEmissionStandardIVforNon-roadVehiclesandterminalproductsofmainengineplantcustomers.TheCompanyalsoupgradedtheproductpost-processingconfiguration,andcompletedthemarketverificationandemissioncertificationtesttoeffectivelyimprovetheemissionreductioncapacityofproductsandcontinuouslydevelopgreenpower.TheCompanyconstantlyimprovedtheassemblyandpowerperformanceofoutboardengines,promotedthecompletionofinstallationdebuggingandmarketapplicationforproductsofmultiplepowerranges,andobtainedshipinspectioncertificateforD25outboardenginesandexportedthemoverseas.Intermsofsalesandservices,theCompanystrengthenedchannelmanagementforsingle-cylinderengines,andconsolidatedthemarketapplicationshareofsingle-cylinderenginesintheindustrialcluster.Intermsofmulti-cylinderengines,theCompanyintensifiedthecollaborationeffortsattheterminalmarket,consolidatedmarketapplicationshareintraditionaladvantageousfields,andexpandedtheincrementalmarketofharvestingmachinery.Moreover,theCompanyfurtherboostedmarketdevelopmentinnon-agriculturalfields,withitsintelligentintegratedchargingstationssuccessfullyenteringtheflightdefencemarketalready.Additionally,
foreigntradesalesjumpedinemergingmarkets.TheCompanyalsocontinuouslyoptimizedtheallocationofserviceresources,strengthenedservicecollaboration,andcompletedvariousmarketservicetasksduringbusyagriculturalperiods,whileincreasingthepublicitybynewmediatoimprovethevisibilityandqualityofmarketing.Intermsofqualitymanagement,theCompanycontinuouslyoptimizedthequalitysystem,strengthenedqualitycontrol,andstrictlycontrolledtheproductinspectionandproductionprocesses.Moreover,theCompanyactivelyrespondedtomarketfeedback,furthermanagedthestabilizationandenhancementofthesupplychain,andimprovedthequalitylevelofproductsthroughprecisemeasures.Intermsofinternalmanagement,theCompanycomprehensivelyimprovedtheestablishmentoftheinternalcontrolsystem,andtookmultiplemeasurestoreducecostsandimprovetheCompany'soperatingefficiencyandgovernancelevel.Moreover,theCompanyfurtherimproveditsassessmentandincentivemechanism,andstrengthenedtheintroductionandcultivationoftalentsandthebuildingofcadreteamtoforgeatalentteamwelladaptingtothedevelopmentoftheCompany.TheCompanyalsocarriedoutsafeproductionactivitiesandfiresecuritydrills,organizedvariousculturalandsportsactivities,workedtocreateasafe,stableandcohesiveworkenvironmentandcorporateatmosphere,whilestrengtheningthepublicityofcorporateimageandproductsthroughmultiplechannelstoenhancetheCompany'sbrandinfluence.DuringtheReportingPeriod,theCompanyobtained25%equityofHorizonAgriculturalEquipmentoriginallyheldbyHorizonInvestment,enablingittodirectlyhold100%equityofHorizonAgriculturalEquipment.AsoftheendoftheReportingPeriod,theCompanyhadreceivedatotalofRMB117millionincompensationforhousingexpropriationfromWuxingBranchandRMB30millioninthefirstphaseofcompensationforhousingexpropriationfromSanjingBranch.
IICoreCompetitivenessAnalysis
1.AdvantagesinBrandChangchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,IATF16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.DuringtheReportingPeriod,theCompanywasawardedthetitlesofNationalDemonstrationEnterpriseofProductandServiceQualityIntegrity,LargeKeyOutstandingEnterpriseintheChineseMechanicalIndustry,ExcellentBrandintheAgriculturalMachineryEquipmentIndustryofJiangsuProvince,etc.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmall
andmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,theCompanyappliedforandobtained12patentsacceptedbytheChinaNationalIntellectualPropertyAdministration,andobtained11patentauthorizations.Asof30June2024,theCompanyhadatotalof164domesticandforeignpatents,including17inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with24salesservicecentersand716designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.
IIICoreBusinessAnalysis
OverviewSeecontentsundertheheading“IPrincipalActivityoftheCompanyintheReportingPeriod”.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
H12024
| H12024 | H12023 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 1,495,909,152.63 | 1,350,517,639.85 | 10.77% | |
| Costofsales | 1,247,104,070.05 | 1,168,898,203.83 | 6.69% | |
| Sellingexpense | 62,703,122.61 | 62,131,032.17 | 0.92% | |
| Administrativeexpense | 53,480,629.46 | 52,877,371.06 | 1.14% | |
| Financecosts | -8,614,351.66 | -4,976,652.95 | —— | IncreasedinterestincomeanddecreasedinterestexpensesintheReportingPeriod |
| Incometaxexpense | 4,314,671.32 | 7,189,328.33 | -39.99% | Decreasedfairvalueofheld-for-tradingfinancialassetsofwholly-ownedsubsidiaryHorizonInvestmentintheReportingPeriod,resultinginacorrespondingdecreaseindeferredincometaxliabilities |
| R&Dinvestments | 38,765,247.04 | 35,839,071.42 | 8.16% | |
| Netcashgeneratedfrom/usedinoperatingactivities | -161,814,513.00 | -104,796,816.75 | —— |
Netcashgeneratedfrom/usedininvestingactivities
| Netcashgeneratedfrom/usedininvestingactivities | -132,707,275.04 | -45,360,077.56 | —— | Themainreasonisthatthenetcashreceivedfromthecompany'sinvestmentrecoveryinthecurrentperioddecreasedyear-on-year. |
| Netcashgeneratedfrom/usedinfinancingactivities | -33,167,547.83 | -8,886,489.92 | —— | Theincreased2023finaldividendpayout |
| Netincreaseincashandcashequivalents | -327,689,335.87 | -159,043,384.23 | —— |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Breakdownofoperatingrevenue:
Unit:RMB
| H12024 | H12023 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 1,495,909,152.63 | 100% | 1,350,517,639.85 | 100% | 10.77% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 1,477,768,073.74 | 98.79% | 1,333,099,509.22 | 98.71% | 10.85% |
| Other | 18,141,078.89 | 1.21% | 17,418,130.63 | 1.29% | 4.15% |
| Byproductcategory | |||||
| Dieselengines | 1,397,237,787.65 | 93.40% | 1,246,906,709.16 | 92.33% | 12.06% |
| Gasolineengines | 62,093,594.55 | 4.15% | 82,791,314.55 | 6.13% | -25.00% |
| Other | 36,577,770.43 | 2.45% | 20,819,616.14 | 1.54% | 75.69% |
| Byoperatingsegment | |||||
| Domestic | 1,339,807,981.05 | 89.56% | 1,114,906,055.18 | 82.55% | 20.17% |
| Overseas | 156,101,171.58 | 10.44% | 235,611,584.67 | 17.45% | -33.75% |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
√Applicable□Notapplicable
Unit:RMB
Operatingrevenue
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 1,477,768,073.74 | 1,232,962,844.33 | 16.57% | 10.85% | 6.62% | 3.32% |
| Byproductcategory | ||||||
| Dieselengines | 1,397,237,787.65 | 1,163,197,030.40 | 16.75% | 12.06% | 7.13% | 3.83% |
| Gasolineengines | 62,093,594.55 | 52,444,200.08 | 15.54% | -25.00% | -21.78% | -3.48% |
| Byoperatingsegment | ||||||
| Domestic | 1,339,807,981.05 | 1,098,121,111.89 | 18.04% | 20.17% | 16.83% | 2.34% |
| Overseas | 156,101,171.58 | 148,982,958.16 | 4.56% | -33.75% | -34.94% | 1.75% |
CorebusinessdataofthepriorperiodrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
IVAnalysisofNon-CoreBusinesses
√Applicable□Notapplicable
Unit:RMB
| Amount | As%ofgrossprofit | Mainreason/source | Recurrentornot | |
| Returnoninvestment | 14,299,040.62 | 24.53% | Stockdividendsandincomefromcashmanagement | Yes |
| Gains/lossesonchangesinfairvalue | -34,487,453.74 | -59.17% | Decreaseinthefairvalueofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,andKailongHighTechnologyCo.,Ltd. | No |
| Assetimpairmentloss | -359,995.80 | -0.62% | Inventoryvaluationlossesforthecurrentperiod | No |
| Non-operatingincome | 1,070,935.19 | 1.84% | Amountsthatrequirednopayment | No |
| Non-operatingexpense | 267,734.59 | 0.46% | Compensationmatters | No |
VAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
30June2024
| 30June2024 | 31December2023 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 791,920,099.90 | 14.86% | 1,083,867,966.87 | 21.01% | -6.15% | Themainreasonisthatduringthereportingperiod,thecompanyincreaseditsmarketexpansionefforts,moderatelyextendedcredit,reducedfundrecovery,andincreasedunexpiredwealthmanagementattheendoftheperiodcomparedtothebeginning. |
| Accountsreceivable | 1,183,949,152.56 | 22.22% | 316,543,159.91 | 6.14% | 16.08% | MostoftheCompany’smulti-cylinderdieselenginecustomersaresupportingcompaniesofmainengine,whichareusuallygivenlongerpaymentdaysandtheCompanyproperlyallowedcustomers’buyingoncredittostepupeffortstoexpandthemarketduetotheproductemissionupgrading. |
| Inventories | 619,715,018.92 | 11.63% | 789,220,185.68 | 15.30% | -3.67% | ProductsalesincreasedintheReportingPeriod,reducingdiesel |
enginestocks
| enginestocks | ||||||
| Investmentproperty | 38,789,201.33 | 0.73% | 39,837,558.11 | 0.77% | -0.04% | |
| Fixedassets | 637,435,729.73 | 11.96% | 675,596,920.95 | 13.09% | -1.13% | |
| Constructioninprogress | 4,330,676.58 | 0.08% | 4,275,622.18 | 0.08% | 0.00% | |
| Contractliabilities | 37,517,411.19 | 0.70% | 33,352,877.66 | 0.65% | 0.05% |
2.MajorAssetsOverseas
□Applicable√Notapplicable
3.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesthroughequity | ImpairmentallowancemadeintheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Financialassets | ||||||||
| Held-for-tradingfinancialassets(exclusiveofderivativefinancialassets) | 225,641,429.94 | -34,487,453.74 | 598,044,324.00 | 386,297,516.67 | 402,900,783.53 | |||
| Investmentsinotherequityinstruments | 969,488,025.67 | -52,044,000.00 | 917,444,025.67 |
Subtotaloffinancialassets
| Subtotaloffinancialassets | 1,195,129,455.61 | -34,487,453.74 | -52,044,000.00 | 598,044,324.00 | 386,297,516.67 | 1,320,344,809.20 | ||
| Others | 412,914,576.80 | 412,914,576.80 | ||||||
| Totaloftheabove | 1,608,044,032.41 | -34,487,453.74 | -52,044,000.00 | 598,044,324.00 | 386,297,516.67 | 1,733,259,386.00 | ||
| Financialliabilities | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
4.RestrictedAssetRightsasatthePeriod-End
Unit:RMB
| Item | Endingcarryingamount | Typeofrestriction | Reasonforrestriction |
| Monetaryassets-othermonetaryassets | 108,979,912.31 | Securitydeposits | Securitydepositsassociatedwithbankacceptancenotes,environment,etc. |
| Fixedassets-buildingsandconstructions | 1,245,851.51 | Ascollateral | Ascollateralfortheissueofbankacceptancenote |
| Intangibleassets-landuserights | 828,429.65 | Ascollateral | Ascollateralfortheissueofbankacceptancenote |
| Fixedassets-plantandequipment | 21,597,853.38 | Ascollateral | Ascollateralfortheissueofbankacceptancenote |
| Notesreceivable-transferredunduenotes | 46,144,123.81 | Paymentobligationoftransferredunduenotes | Endorsedattheperiod-endandundueatthebalancesheetdate |
| Total | 178,796,170.66 |
VIInvestmentsMade
1.TotalInvestmentAmount
□Applicable√Notapplicable
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
Varietyofsecurity
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingamount | Gain/lossonfairvaluechangesintheReportingPeriod | Accumulatedfairvaluechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingamount | Accountingtitle | Fundingsource |
| Domestic/foreignstock | 600166 | FotonMotor | 41,784,000.00 | Fairvaluemethod | 394,485,000.00 | 0.00 | 283,341,000.00 | 0.00 | 0.00 | 0.00 | 325,125,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 156,546,000.00 | 0.00 | 131,076,000.00 | 0.00 | 0.00 | 10,998,000.00 | 173,862,000.00 | Investmentinotherequityinstruments | Self-funded |
Domestic/foreignstock
| Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 18,119,861.00 | -8,692,704.00 | 0.00 | 0.00 | 0.00 | -8,692,704.00 | 9,427,157.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 66,873,600.00 | -26,020,800.00 | 0.00 | 0.00 | 0.00 | -25,511,040.00 | 40,852,800.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 301,560.00 | 80,360.00 | 0.00 | 0.00 | 0.00 | 104,160.00 | 381,920.00 | Held-for-tradingfinancialassets | Self-funded |
| Total | 111,932,012.76 | -- | 636,326,021.00 | -34,633,144.00 | 636,326,021.00 | -34,633,144.00 | 414,417,000.00 | 0.00 | 0.00 | -- | -- | ||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofRaisedFunds
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIISaleofMajorAssetsandEquityInvestments
1.SaleofMajorAssets
□Applicable√NotapplicableThecompanydidnotsellanysignificantassetsduringthereportingperiod.
2.SaleofMajorEquityInvestments
□Applicable√Notapplicable
VIIIPrincipalSubsidiariesandJointStockCompanies
√Applicable□NotapplicablePrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
Name
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 138,725,393.72 | 74,490,566.21 | 93,979,398.35 | -2,090,581.28 | -2,280,035.78 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 63,795,671.65 | 50,615,713.75 | 20,436,838.02 | 478,583.16 | 487,315.76 |
| HorizonInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 73,939,816.90 | 66,409,833.86 | 0.00 | -33,871,889.89 | -25,213,603.89 |
| HorizonAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 2,805,581.03 | -16,599,275.23 | 104,807.44 | -596,197.60 | -596,197.60 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 116,554,160.63 | 105,839,591.10 | 62,093,594.55 | 4,697,318.55 | 3,991,413.01 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 300,000,000.00 | 626,470,766.42 | 213,155,707.67 | 436,624,877.22 | -4,733,086.59 | -4,733,085.60 |
| XingshengRealEstateManagement | Subsidiary | Realestatemanagementservice | 1,000,000.00 | 3,251,763.76 | 1,962,179.66 | 2,199,844.85 | 516,159.18 | 503,077.63 |
ZhenjiangSiyang
| ZhenjiangSiyang | Subsidiary | Manufacturingandmarketingofdieselenginesforships | 2,000,000.00 | 118,285,307.51 | 106,904,458.52 | 40,212,271.49 | 6,973,269.63 | 6,294,954.12 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
□Applicable√NotapplicableOtherinformationaboutprincipalsubsidiariesandjointstockcompanies:
1.TheCompanyholdsatotalof49%equityinterestsinZhenjiangSiyang,makingitthelargestshareholder.Othershareholdersaredispersed.TheCompanyappointedfouroutofthesevenmembersofZhenjiangSiyang'sBoardofDirectors,includingtheChairman.Therefore,theCompanyistheactualcontrollerofZhenjiangSiyang,whichconstitutestheconditionsfortheconsolidation.
2.InJune2024,theCompanyacquired25%oftheequityinterestinHorizonAgriculturalEquipmentheldbyHorizonInvestment,andtheCompanynowdirectlyholds100%oftheequityinterestinHorizonAgriculturalEquipment.
IXStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
XRisksFacingtheCompanyandCountermeasures
(1)MarketriskUndertheinfluenceofnationalpoliciesonsubsidiesforthepurchaseofmachinery,industrialdevelopmentpoliciesandenvironmentalregulationsandrequirements,themarketperformanceoftraditionalcategorieshasdeclined,andthecompetitionintheexistingmarketshasintensified.Withthedevelopmentofhigh-endintelligentagriculturalmachinery,theagriculturalmachineryindustryhasenteredaperiodofin-depthadjustmentsledbyoptimizationandupgrading.Mostenterpriseshavecontinuouslystrengthenedproductdevelopmentandoptimization,andincreasedmarketmaintenanceanddevelopmenteffortsinresponsetomarketdemand.Meanwhile,theproductsthatmeettheNationalEmissionStandardIVhavefullyenteredthemarket,furtherintensifyingindustrycompetition.Countermeasures:First,theCompanywillkeepupwiththepolicyorientationandoptimizeproductstructure.Second,theCompanywillpreciselypositionmarketingwithafocusonmarketdemand.Third,theCompanywillstrengtheninternalmanagementandimproveoperatingefficiency.Fourth,theCompanywillpayattentiontotalentcultivationandstimulatethevitalityofinnovation.Fifth,theCompanywillenhanceriskpreventionandcontroltoensuresteadydevelopment.
(2)IndustrialriskInrecentyears,influencedbythedevelopmentofnewenergyapplicationtechnologyandrelevantpolicyincentives,variousenterpriseshaveacceleratedtheirresearch,application,andmarketapplicationinthefieldofnewenergypower,sothemarketshareofapplicationfieldsrelatedtodieselengineshasbeenaffectedtoacertainextent.Atpresent,newenergypowerstillfaceschallengessuchashighcostsandcomplexoperating
environmentsinthefieldofagriculturalmachinery.However,withthecontinuousbreakthroughofnewenergytechnology,someapplicationscenariosofnon-roaddieselenginesmaybereplacedbynewenergypower.Countermeasures:First,theCompanywilldevelopproductsthatmeetthenationalpoliciesonenergyconservationandemissionreduction,optimizeandupgradeproductlinesaccordingtomarketdemand,improveproductcompetitiveness,andstabilizemarketadvantages.Second,theCompanywillacceleratetheR&Dofnewenergypower,andexpandthefieldsofnewenergyhybridproductsandapplicationthereoftopromotethesustainabledevelopmentoftheCompany.
(3)ForeigntraderiskInrecentyears,theinternationalsituationhasbecomeincreasinglycomplicated.TheRussia-UkraineconflictandthePalestinian-Israeliconflicthaveintensifiedthefragmentationoftheglobalcamp,bringingseriousnegativeimpactsonregionalpoliticsandsecurity,worldeconomicrecovery,foodandenergysecurity,ecologicalenvironmentandmanyotheraspects,whileaffectingtheforeigntradepoliciesofvariouscountriestovaryingdegrees.Iftherearesignificantchangesinthepoliticalstabilityandforeigntradepoliciesofforeignmarkets,itwillhaveasignificantimpactonproductexportsales.Countermeasures:First,theCompanywillenhanceoverallforeigntradeefficiencythroughcomplementaryinternalandexternalresources,information,andproducts.Second,theCompanywillinnovateandtransformproductsincombinationwithoverseasmarketdemand,andpromotemorehigh-performanceproductsinnewfieldstooverseasmarkets.Third,theCompanywillcultivateanddevelopkeymarkets,establishasoundsalesandservicenetworkinexportmarkets,andstrengthenservicedevelopmentinoverseasmarkets.
(4)ForeignexchangeriskInrecentyears,thechallengesanduncertaintiesintheinternationalpoliticalandeconomicenvironmenthaveincreased,leadingtoanincreaseinexchangeratefluctuationfactors.TheCompany'sproductsareexportedoverseas,andexchangeratefluctuationsmayhaveadverseeffectsonthesalesoftheCompany'sproducts.Countermeasures:First,theCompanywillcloselymonitorexchangeratefluctuations,chooseappropriatecurrenciesforpricingandsettlement.Itwillreducerisksbychangingpaymentmethodsandpurchasingexportcreditinsurance.Second,theCompanywilladjustproductpricesandpaymenttermsinatimelymannerinresponsetofluctuationsinexchangeratesandmaterialprices.Third,theCompanywillenhancethecompetitivenessofproductsandservices,toreducetheimpactofexchangeratefluctuationsontheCompany'sproductsales.
(5)RiskoffluctuationsinrawmaterialpricesThemarketpricesofrawmaterialsoftenfluctuate,influencedbyfactorssuchasmacroeconomicenvironment,productioncapacity,andchangesindemand.ThepricefluctuationsofrawmaterialssuchassteelandpigironwillbringpressuretotheCompany'smanufacturingcostsandhaveacertainimpactontheCompany'sprofits.Countermeasures:First,theCompanywillimproveproductionandoperationefficiencythroughmeasuressuchastechnologicalimprovementandstrengtheningcostmanagement.Second,itwilloptimizethesupplysystemandstrengthensupplychainmanagement.Third,theCompanywilltimelytrackmarkettrendsandstrengtheninventorymanagement,toalleviatetheadverseeffectsofrawmaterialpricefluctuationsontheCompany.
(6)TalentriskTalentisoneofthekeyfactorsforthedevelopmentoftheCompany.TheCompanyneedstalenttohelpimproveoperationalefficiencyandaccelerateitsdevelopmentandbuilding.IftheCompany'sremunerationpoliciesandtalentincentiveandconstraintpoliciesareinadequate,itwillleadtoashortageofhigh-endleadingmanagementandtechnicaltalents,andashortageofreservetalents,whichwillaffectresearchandinnovationcapabilitiesandcorecompetitiveness.Countermeasures:First,basedontheCompany'sdevelopmentplanandactualneedsofbusinessmanagement,the
Companywillcontinuouslyimprovethetalentintroductionmechanismandtalentcultivationsystem,optimizepersonnelstructure,andcomprehensivelyenhancetheoverallqualityoftheemployeeteam.Second,theCompanywillcontinuouslyimprovetheprofessionalabilitiesofemployeesthroughsystematictrainingandothermeasuresbasedonbusinessdevelopmentneeds.Third,theCompanywillimprovetalentincentivemethodsandperformanceappraisalsystems,andacceleratethedevelopmentofyoungleadershiptalent,tocomprehensivelyenhancethecontributionrateofhumanresources.Fourth,TheCompanywillstrengthentheconstructionofthestaffcongresssystemandtradeunionservicestocreateaharmoniousdevelopmentenvironmentandenhanceemployees'senseofbelongingandhappiness.XIImplementationofthe“QualityandEarningsDualImprovement”ActionPlan
IndicatewhethertheCompanyhasdisclosedthe“QualityandEarningsDualImprovement”ActionPlan.
□Yes√No
PartIVCorporateGovernanceIAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
Meeting
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Dateofdisclosure | Indextodisclosedinformation |
| The2023AnnualGeneralMeeting | Annualgeneralmeeting | 32.34% | 8May2024 | 9May2024 | Allproposalswereapproved.SeeAnnouncementNo.2024-016onResolutionsofthe2023AnnualGeneralMeeting. |
2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferenceShareholderswithResumedVotingRights
□Applicable√Notapplicable
IIChangeofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableTheCompany’sdirectors,supervisorsandseniormanagementremainedthesameduringtheReportingPeriod,informationofwhichcanbefoundinthe2023AnnualReport.IIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoAdministrativepunishmentsreceivedintheReportingPeriodduetoenvironmentalissues:
Notapplicable.Otherenvironmentalinformationwithreferencetoakeypolluter:
NeithertheCompanynoranyofitssubsidiariesisakeypolluteridentifiedbytheenvironmentauthorities.Theystrictlyobserveapplicablelawsandregulationsassociatedwithenvironmentalprotectioninproductionandoperation,includingLawofthePeople'sRepublicofChinaonEnvironmentalProtection,LawofthePeople'sRepublicofChinaonPreventionandControlofWaterPollution,LawofthePeople'sRepublicofChinaonPreventionandControlofAirPollution,LawofthePeople'sRepublicofChinaonPreventionandControlofEnvironmentalNoisePollution,andLawofthePeople'sRepublicofChinaonPreventionandControlofSolidWastePollution.Theypayenvironmentalprotectiontaxinaccordancewiththelaw,withoutreceivinganypenaltyforviolationofsuchlawsorregulationsduringtheReportingPeriod.ActionstakenduringtheReportingPeriodtoreducecarbonemissionsandtheimpact:
□Applicable√NotapplicableReasonsfornotdisclosingotherenvironment-relatedinformation:
TheproductionandoperationoftheCompanyanditssubsidiariesareinstrictcompliancewithChina’sapplicablelawsandregulations,andtheCompanywillcontinuetostrengthenthesupervisionandmanagementofenvironmentalprotectiontoensurethatthedevelopmentoftheCompanyisinlinewithenvironmentalprotectionpoliciesandregulations.IISocialResponsibilityDuringtheReportingPeriod,theCompanyattachedimportancetoandactivelyfulfilleditssocialresponsibilities.Adheringtothecorevaluesof"CustomerFirst,EmployeeOriented,EnhancingShareholderReturns,andCreatingValueforSociety",andtaking"ProvidingGreenPowerforaBetterLife"asitsmission,theCompanyinsistedonintegritymanagement,paidtaxesaccordingtolaw,andconstantlyenhancedthecapabilityofself-developmenttoachievesustainabledevelopment.TheCompanystrovetosafeguardthelegitimaterightsandinterestsofshareholders,employees,customers,suppliersandconsumers,pursuedharmoniousdevelopmentbetweentheCompanyandsociety,andactivelygavebacktosociety.InaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLaw,theCodeofCorporateGovernanceforListedCompanies,theListingRulesofShenzhenStockExchange,otherrelevantlawsandregulationsandtheArticlesofAssociation,theCompanystandardizeditsoperation,andformedaninternalmanagementandcontrolpolicysysteminwhichtheShareholders'GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommitteerestricteachotherandoperateeffectively.Accordingtotheinternalcontrolpolicysystem,theCompanydefinedtheresponsibilitiesandauthoritiesforpartiesinchargeofdecision-making,executionandsupervision,effectively
dividedresponsibilitiesandformedabalancemechanism,andcontinuouslyimprovedthestandardizedoperationleveloftheCompany.(I)Protectionoftherightsandinterestsofinvestors:TheCompanyhasexerciseditsfunctionsandpowersinstrictaccordancewithrelevantlawsandregulationstoeffectivelyprotecttherightsandinterestsofallshareholders.IntheReportingPeriod,theCompanyconductedanonlineresultspresentationofAnnualReport2023,earnestlyorganizedthemanagementofinvestors,communicatedwithshareholderseffectively,andtreatedallshareholdersfairly.TheCompanycompletedthepaymentofthe2023finaldividendofRMB33.1675millionduringtheReportingPeriod.TheCompany'stotalcashdividendamountinthelastthreeyearsaccountedfor60.97%oftheaverageannualnetprofitinthelastthreeyears,exceedingthedividendcommitment.TheCompany'sinformationdisclosureislegalandcompliant,andthecontentdisclosedistrue,accurateandcompletetosafeguardshareholders'righttoknow,andprovideinvestorswithasufficientinvestmentbasis.TheCompanyattachesgreatimportancetothemanagementofinsiderinformation.IntheReportingPeriod,therewasnoinsidertradingordamagetotheinterestsofshareholders.(II)Protectionofcreditors'equity:TheCompanyestablishedasystematicinternalcontrolsystemthatcoversfinancialmanagement,investmentmanagement,financingmanagement,assetmanagement,fundmanagement,accountingmanagementandcurrentaccountmanagement.Moreover,prudentfinancialmanagementplanwasimplemented,accountingsupervisionwasconductedinaccordancewiththelaw,andtheCompany'sassetswereeffectivelyutilizedtoimprovetheCompany'seconomicbenefitsandensurethesecurityoftheCompany'sassetsandfundseffectively.TheCompanyupheldtheconceptofintegrityservice,followedtheprincipleofwinningtrustthroughintegrityandestablishingreputationthroughtrust,continuouslyimprovedthemanagementlevelofcorporatecredit,andconstantlyenhancedthecorecompetitivenessandsustainabledevelopmentcapabilityoftheCompanywithhighercredibilityandbetterservice.(III)Protectionoftherightsandinterestsofclientsandconsumers.TheCompanyhasbuiltanationwidesalesandservicenetworkinChina.TomeettheemissionrequirementsoftheNationalEmissionStandardIVforNon-roadVehiclesandprovidecustomerswithmoreaccurateafter-salesservices,theCompanyhasspeciallydevelopedaservicemonitoringplatformwithChangchaicharacteristics.TheCompanyhasestablishedasound,long-termpartnershipwithcustomers,iscommittedtoprovidingcustomerswithhigh-quality,efficientandtimelyservices,andhasbeenrecognizedandhonouredbymanycustomersandqualitysuppliers.Inrecentyears,theCompanyhasgraduallyimproveditsmarketservicesatisfaction,andrepeatedlywonthehonorarytitleofNationalModelEnterpriseforTrustworthyProductandServiceQuality.Asaqualitysupplierforanumberofmainengineplants,theCompanyhaswontherecognitionofclientsandcustomerswithhigh-qualityproductsandservices.(IV)Protectionofsuppliers’rightsandinterests:TheCompanyenhancedsuppliermanagementwhileobservingtheContractontheApplicationandProcurementofPartsandtheQualityAssuranceAgreementforSuppliers,optimizedthecapacityandsupplyallocationforparts,intensifiedinventoryandplanmanagement,andpaidsuppliersforthegoodspromptlypursuanttothecontracts.Accordingtotheassessmentresultsandactualsupplysituation,theCompanyconstantlyhasadjustedandoptimizeditssupplysystem,andsupportedthetechnologygrowthandprogressofsuppliers,inanefforttocreateavirtuouscycleofsupplyrelations.(V)Protectionofemployees'rightsandinterests:TheCompanyupholdsthepeople-orientedconceptintalentmanagement.Specifically,theCompanypaidattentiontothecomprehensiveabilityimprovementandpersonalcareerdevelopmentofemployees,andimprovedanddevelopedemployees'abilitiesbycombiningtheoryandpractice.TheCompanyhasmadeconsideratearrangementsforemployees,includingfestiveperks,healthcheck-ups,medicalrecuperation,benefitsprovidedthroughthelaborunionservicecards,assistancetoemployeesinneed,andotherphilanthropicinitiatives.TheCompanyactivelyimprovedtheworkingenvironmentofemployees,andproperlymonitoredemployees'healthtoeffectivelyguaranteetheoccupationalsafetyandhealth
ofemployees.TheCompanyhasstrictlyobservedtheLaborLawandtheLaborContractLaw,protectedthelegitimaterightsandinterestsofemployeesaccordingtolaw,properlyaddressedreasonableneedsofemployees,andbuiltharmoniousandstablerelationsbetweenemployeesandemployer.TheCompanyhasalsoprovidedemployeeswithavarietyoflearning,trainingandpromotionchannels,soastoimprovetheabilitiesofemployeesandenablethemtogrowtogetherwiththeCompany.(VI)Safeproduction.TheCompanystrictlyimplementedthenewWorkSafetyLawofthePeople'sRepublicofChinaand,tobuildasafeChangchai,fullyimplementedpoliciesandemergencyresponsemechanismsforsecurityprotectionandfiresafety.Moreover,theCompanydidwellinpublicsecurityandfirecontrol,withfiresafetytrainingbeingconductedfor146peopleandsixfiredrillsorganized.TheCompanyalsostrengthenedthesafetyeducationofemployees,soastoimprovetheirself-preventionabilityincaseofemergencyintheirdailyworkandtheircomprehensiveabilitytodealwithemergenciesinsuchaspectsassafety,firecontrol,occupationalhealthandequipment.(VII)Environmentalprotectionandsustainabledevelopment.TheCompanyactivelyimplementedtheconceptofscientificdevelopmentandgreendevelopmentand,withahighsenseofresponsibilitytothesocietyandfollowingtheenvironmentalprotectionprincipleofefficiencyenhancement,consumptionreduction,energysavingandpollutionreduction,activelytookmeasurestoreduceenergyconsumptionandpollutionemissions,thusmaintainingabeautifullivingenvironmentandpromotingtheCompany'ssustainabledevelopment.TheCompany'sactivitiessuchasproductionandoperation,productdesign,andafter-salesservicewereallinstrictcompliancewiththe"PDCA"principleforcontinuousimprovement,andeffortsweremadetomaintaintheeffectiveoperationofthenewversionofthenewISO14001Environmentalmanagementsystems.(VIII)Socialwelfare.TheYouthLeagueCommitteeoftheCompanyorganisedyouthsfromallbranchestocarryouttheactivityofcharitysaleofuseditemswiththethemeof“Recycle,PassonLove,andRaiseHope”,andthemoneygainedfromthecharitysalewasusedtobuystationerysuppliesandgivethemtothestudentsofChangchaiHopePrimarySchool.TheyoungpeopleoftheCompanyinheritedthespiritofLeiFengwithpracticalactions,andfosteredtheoutlookonlifeandvaluesofcaringforothers,dedication,solidarityandhelpingeachother.Centringarounditsoperationalpolicy,theCompanyactivelypromotedtheR&D,productionandapplicationofhigh-qualityenvironmentalprotectionproductstoservethedevelopmentofagriculture,ruralareasandfarmers,whileimprovingtheenergyefficiencyandprotectingtheenvironment.Meanwhile,incombinationwithitsrealities,theCompanyincreasedsupportinsocialwelfareundertakings,andearnestlyfulfilleditssocialresponsibilitytopromotethecoordinatedandsustainabledevelopmentofsociety,economyandenvironment.
PartVISignificantEvents
ICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsareunaudited.
VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable√Notapplicable
VIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIIILegalMattersSignificantlawsuitsandarbitrations:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
□Applicable√NotapplicableIXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XCreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController
√Applicable□NotapplicableThedefactocontrolleroftheCompanyisSASACofChangzhouPeople’sGovernmentandthecontrollingshareholderofitisChangzhouInvestmentGroupCo.,Ltd.Thereisnosuchcasethatthecontrollingshareholderfailstoperformanylegallyeffectivejudgmentofcourtsortopayoffmatureddebtswithalargeamount.XIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorDisposalofAssetsorEquityInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.AmountsDuetoandfromRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable√NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable√NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedforWealthManagement
√Applicable□Notapplicable
Unit:RMB’0,000
Type
| Type | Fundingsource | Amount | Undueamount | Unrecoveredoverdueamount | Impairmentallowanceforunrecoveredoverdueamount |
| Brokerfinancialproducts | Self-funded | 5,924.43 | 3,924.43 | 0.00 | 0.00 |
| Bankfinancialproducts | Self-funded | 31,275.00 | 31,200.00 | 0.00 | 0.00 |
| Total | 37,199.43 | 35,124.43 | 0.00 | 0.00 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidity:
□Applicable√NotapplicableSituationwheretheprincipalisexpectedlyirrecoverableorimpairmentmaybeincurred:
□Applicable√Notapplicable
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIIOtherSignificantEvents
√Applicable□Notapplicable
1.ExpropriationoftheWuxingbranchcompany’spropertiesonstate-ownedlandandcompensationOn25May2023,theProposalontheIntentiontoSigntheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensationwasapprovedatthe17thMeetingoftheNinthBoardofDirectors.Later,thesaidmatterwasapprovedattheFirstExtraordinaryGeneralMeetingofShareholdersin2023dated12June2023.Assuch,theCompanywasagreedtosignacontractwithChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureauontheexpropriationoftheWuxingbranchcompany’spropertiesonstate-ownedlandandthecompensation,withthecontractualtotalcompensationamountbeingRMB117million.On14June2023,theCompanysignedtheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensationwithChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureau,andreceivedthefirstcompensationpaymentofRMB70millionon28June2023,andreceivedtheresidualcompensationpaymentofRMB47millionon9January2024.
2.Housingexpropriationonstate-ownedlandandcompensationofSanjingBranchOn27October2023,theCompanyheldtheThirdMeetingoftheTenthBoardofDirectors,deliberatingonandapprovingtheProposalonSigningtheSanjingBranch'sAgreementonNon-residentialHousingExpropriationandCompensationinXinbeiDistrict,ChangzhouCity.Thematterwasapprovedatthethirdextraordinarygeneralmeetingon14November2023,approvingthattheCompanywouldsignagreementwiththeHousingandUrban-RuralDevelopmentBureauofChangzhouNationalHigh-techIndustrialDevelopmentZoneandtheHousingExpropriationandCompensationServiceCentreofSanjingStreet,XinbeiDistrict,ChangzhouCity,regardingthehousingexpropriationonstate-ownedlandandcompensationoftheSanjingBranch.ThetotalcompensationamountundertheagreementwasRMB99,929,900.On29November2023,theCompanysignedtheAgreementonNon-residentialHousingExpropriationandCompensationwiththeHousingandUrban-Rural
DevelopmentBureauofChangzhouNationalHigh-techIndustrialDevelopmentZoneandtheHousingExpropriationandCompensationServiceCentreofSanjingStreet,XinbeiDistrict,ChangzhouCity.AsoftheReportingPeriod,theCompanyreceivedthefirstcompensationofRMB30million.
3.ChangeofaccountingfirmappointedbytheCompanyOn7December2024,theProposalontheAppointmentoftheFinancialAuditInstitutionfor2024andItsAuditExpensesandtheProposalontheAppointmentoftheInternalControlAuditInstitutionfor2024andItsAuditExpenseswereapprovedatthesecondinterimmeetingoftheBoardofDirectorsin2024.Later,thesaidmatterwasapprovedattheFirstExtraordinaryGeneralMeetingofShareholdersin2024dated30July2024.AssuchtheCompanyagreedtoappointZhongxinghuaCertifiedPubicAccountsLLP(SpecialGeneralPartnership)astheauditoroftheCompany'sfinanceandinternalcontrolin2024,withtheexpensesforfinancialauditandinternalcontrolauditbeingRMB600,000andRMB135,000respectively.
XIVSignificantEventsofSubsidiaries
√Applicable□Notapplicable
1.Acquisitionof25%oftheequityinterestinHorizonAgriculturalEquipmentInJune2024,theCompanyacquired25%oftheequityinterestinHorizonAgriculturalEquipmentheldbyHorizonInvestment,andtheCompanynowdirectlyholds100%oftheequityinterestinHorizonAgriculturalEquipment.
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
Before
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
| 1.Restrictedshares | 56,818,181 | 8.05% | 0 | 56,818,181 | 8.05% | ||||
| 1.1Sharesheldbygovernment | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| 1.2Sharesheldbystate-ownedlegalpersons | 56,818,181.00 | 8.05% | 0 | 56,818,181.00 | 8.05% | ||||
| 1.3Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Amongwhich:Sharesheldbydomesticlegalpersons | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Sharesheldbydomesticnaturalpersons | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| 1.4Sharesheldbyforeigninvestors | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Amongwhich:Sharesheldby | 0 | 0.00% | 0 | 0 | 0.00% | ||||
foreignlegalpersons
| foreignlegalpersons | ||||||
| Sharesheldbyforeignnaturalpersons | 0 | 0.00% | 0 | 0 | 0.00% | |
| 2.Unrestrictedshares | 648,874,326 | 91.95% | 0 | 648,874,326 | 91.95% | |
| 2.1RMB-denominatedordinaryshares | 498,874,326 | 70.69% | 0 | 498,874,326 | 70.69% | |
| 2.2Domesticallylistedforeignshares | 150,000,000 | 21.26% | 0 | 150,000,000 | 21.26% | |
| 2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0 | 0.00% | |
| 2.4Other | 0 | 0.00% | 0 | 0 | 0.00% | |
| 3.Totalshares | 705,692,507 | 100.00% | 0 | 705,692,507 | 100.00% |
Reasonsforthesharechanges:
□Applicable√NotapplicableApprovalofthesharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√Notapplicable
II.IssuanceandListingofSecurities
□Applicable√NotapplicableIIIShareholdersandTheirHoldings
Unit:share
Numberofordinaryshareholders
| Numberofordinaryshareholders | 53,323 | Numberofpreferenceshareholderswithresumedvotingrights(ifany) | 0 | |||||||
| 5%orgreaterordinaryshareholdersorthetop10ordinaryshareholders(excludinglendingsharesthroughrefinancing) | ||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Ordinarysharesheld | Increase/decreaseintheReportingPeriod | Restrictedordinarysharesheld | Unrestrictedordinarysharesheld | Sharesinpledgeorfrozen | |||
| Status | Shares | |||||||||
| ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 32.26% | 227,663,417 | 0 | 56,818,181 | 170,845,236 | N/A | 0 | ||
| ChenJian | Domesticnaturalperson | 0.52% | 3,700,000 | 221,400 | 0 | 3,700,000 | ||||
| KGIASIALIMITED | Foreignlegalperson | 0.44% | 3,101,695 | 0 | 0 | 3,101,695 | ||||
| SongYang | Domesticnaturalperson | 0.41% | 2,871,100 | 2,871,100 | 0 | 2,871,100 | ||||
| WuChunhua | Domesticnaturalperson | 0.32% | 2,236,500 | -205,700 | 0 | 2,236,500 | ||||
| ChenHengjun | Domesticnaturalperson | 0.23% | 1,649,100 | 1,322,300 | 0 | 1,649,100 | ||||
| LiSuinan | Domesticnaturalperson | 0.23% | 1,600,300 | 6,500 | 0 | 1,600,300 | ||||
| ZhangWenbing | Domesticnaturalperson | 0.22% | 1,556,700 | 0 | 0 | 1,556,700 | ||||
HuangGuoliang
| HuangGuoliang | Domesticnaturalperson | 0.22% | 1,528,891 | 0 | 0 | 1,528,891 | |||
| BARCLAYSBANKPLC | Foreignlegalperson | 0.21% | 1,490,524 | 1,490,524 | 0 | 1,490,524 | |||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderinarightsissue(ifany) | N/A | ||||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||||||||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | N/A | ||||||||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | ||||||||
| Top10unrestrictedshareholders(exclusiveofshareslentinrefinancingandexecutivelock-upshares) | |||||||||
| Nameofshareholder | Unrestrictedordinarysharesheld | Sharesbyclass | |||||||
| Class | Shares | ||||||||
| ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMB-denominatedordinaryshare | 170,845,236 | ||||||
| ChenJian | 3,700,000 | RMB-denominatedordinaryshare | 3,700,000 | ||||||
| KGIASIALIMITED | 3,101,695 | Domesticallylistedforeignshare | 3,101,695 | ||||||
| SongYang | 2,871,100 | RMB-denominatedordinaryshare | 2,871,100 | ||||||
| WuChunhua | 2,236,500 | RMB-denominatedordinaryshare | 2,236,500 | ||||||
| ChenHengjun | 1,649,100 | RMB-denominatedordinaryshare | 1,649,100 | ||||||
| LiSuinan | 1,600,300 | Domesticallylistedforeignshare | 1,600,300 | ||||||
| ZhangWenbing | 1,556,700 | RMB-denominatedordinaryshare | 1,556,700 | ||||||
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 | ||||||
BARCLAYSBANKPLC
| BARCLAYSBANKPLC | 1,490,524 | RMB-denominatedordinaryshare | 1,490,524 |
| Relatedoracting-in-concertpartiesamongthetop10unrestrictedordinaryshareholders,aswellasbetweenthetop10unrestrictedordinaryshareholdersandthetop10ordinaryshareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholderChenJianandWuChunhuarespectivelyheld3,300,000sharesand2,236,500sharesintheCompanythroughtheircreditaccounts. | ||
5%orgreatershareholders,top10shareholdersandTop10unrestrictedshareholdersinvolvedinrefinancingshareslending
□Applicable√NotapplicableChangesintop10shareholdersandtop10unrestrictedshareholdersduetorefinancingshareslending/returncomparedwiththepriorperiod
□Applicable√NotapplicableIndicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableNochangesoccurredtotheshareholdingsofthedirectors,supervisorsandseniormanagementintheReportingPeriod.Seethe2023AnnualReportformoredetails.VChangeoftheControllingShareholderortheDeFactoController
ChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
□Applicable√Notapplicable
PartXFinancialStatements
IIndependentAuditor’sReport
Aretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes√NoTheseinterimfinancialstatementshavenotbeenauditedbyanindependentauditor.IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
30June2024
Unit:RMB
Item
| Item | 30June2024 | 1January2024 |
| Currentassets: | ||
| Monetaryassets | 791,920,099.90 | 1,083,867,966.87 |
| Settlementreserve | ||
| Loanstootherbanksandfinancialinstitutions | ||
| Held-for-tradingfinancialassets | 402,900,783.53 | 225,641,429.94 |
| Derivativefinancialassets | ||
| Notesreceivable | 115,592,564.84 | 161,632,567.94 |
| Accountsreceivable | 1,183,949,152.56 | 316,543,159.91 |
| Receivablesfinancing | 12,282,312.54 | 195,875,948.92 |
| Prepayments | 14,444,116.16 | 12,333,310.85 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 2,566,508.89 | 49,699,753.61 |
| Including:Interestreceivable | ||
| Dividendsreceivable |
Financialassetspurchasedunderresaleagreements
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 619,715,018.92 | 789,220,185.68 |
| Including:Dataresource | ||
| Contractassets | ||
| Assetsheldforsale | 2,951,451.11 | |
| Currentportionofnon-currentassets | 40,773,509.75 | |
| Othercurrentassets | 13,766,702.89 | 20,910,504.84 |
| Totalcurrentassets | 3,160,088,711.34 | 2,896,498,338.31 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Debtinvestments | ||
| Otherdebtinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 917,444,025.67 | 969,488,025.67 |
| Othernon-currentfinancialassets | 412,914,576.80 | 412,914,576.80 |
| Investmentproperty | 38,789,201.33 | 39,837,558.11 |
| Fixedassets | 637,435,729.73 | 675,596,920.95 |
| Constructioninprogress | 4,330,676.58 | 4,275,622.18 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 145,411,326.91 | 148,458,185.68 |
| Including:Dataresource | ||
| Developmentcosts | ||
| Including:Dataresource | ||
| Goodwill | ||
| Long-termprepaidexpense | 7,759,660.70 | 8,227,958.66 |
| Deferredincometaxassets | 4,174,238.86 | 1,518,995.79 |
| Othernon-currentassets | 830,991.15 | 2,578,776.77 |
| Totalnon-currentassets | 2,169,090,427.73 | 2,262,896,620.61 |
Totalassets
| Totalassets | 5,329,179,139.07 | 5,159,394,958.92 |
| Currentliabilities: | ||
| Short-termborrowings | ||
| Borrowingsfromthecentralbank | ||
| Loansfromotherbanksandfinancialinstitutions | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 756,037,100.68 | 528,139,582.33 |
| Accountspayable | 589,863,799.52 | 641,484,184.05 |
| Advancesfromcustomers | 30,678,302.75 | 1,647,441.22 |
| Contractliabilities | 37,517,411.19 | 33,352,877.66 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsanddepositsfromotherbanksandfinancialinstitutions | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 11,190,041.72 | 47,738,883.57 |
| Taxesandleviespayable | 5,684,739.66 | 6,231,169.74 |
| Otherpayables | 206,673,763.07 | 159,023,382.81 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Feesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 58,096,009.67 | 67,069,965.96 |
| Totalcurrentliabilities | 1,695,741,168.26 | 1,484,687,487.34 |
| Non-currentliabilities: |
Insurancecontractreserve
| Insurancecontractreserve | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferenceshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 31,091,031.75 | 32,795,896.48 |
| Deferredincometaxliabilities | 155,058,021.85 | 171,843,455.52 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 186,149,053.60 | 204,639,352.00 |
| Totalliabilities | 1,881,890,221.86 | 1,689,326,839.34 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferenceshares | ||
| Perpetualbonds | ||
| Capitalreserves | 640,509,675.84 | 640,509,675.84 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 622,942,921.82 | 667,180,321.82 |
| Specificreserve | 20,082,705.37 | 19,432,089.52 |
| Surplusreserves | 363,695,592.34 | 363,695,592.34 |
| Generalreserve | ||
| Retainedearnings | 1,019,366,832.03 | 1,002,436,724.71 |
| TotalequityattributabletoownersoftheCompanyastheparent | 3,372,290,234.40 | 3,398,946,911.23 |
| Non-controllinginterests | 74,998,682.81 | 71,121,208.35 |
| Totalowners’equity | 3,447,288,917.21 | 3,470,068,119.58 |
| Totalliabilitiesandowners’equity | 5,329,179,139.07 | 5,159,394,958.92 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item
| Item | 30June2024 | 1January2024 |
| Currentassets: | ||
| Monetaryassets | 684,650,508.98 | 971,143,382.52 |
| Held-for-tradingfinancialassets | 302,000,000.00 | 100,437,916.67 |
| Derivativefinancialassets | ||
| Notesreceivable | 100,566,078.42 | 152,906,979.84 |
| Accountsreceivable | 1,156,324,634.71 | 291,996,837.94 |
| Accountsreceivablefinancing | 14,682,312.54 | 193,679,203.92 |
| Prepayments | 10,752,337.97 | 5,850,589.29 |
| Otherreceivables | 253,310,648.05 | 399,142,024.92 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 379,778,666.24 | 475,538,711.10 |
| Including:Dataresource | ||
| Contractassets | ||
| Assetsheldforsale | 2,951,451.11 | |
| Currentportionofnon-currentassets | 40,773,509.75 | |
| Othercurrentassets | 5,839,708.73 | |
| Totalcurrentassets | 2,905,016,638.02 | 2,637,308,864.68 |
| Non-currentassets: | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 576,443,530.03 | 576,443,530.03 |
| Investmentsinotherequityinstruments | 917,444,025.67 | 969,488,025.67 |
| Othernon-currentfinancialassets | 412,914,576.80 | 412,914,576.80 |
| Investmentproperty | 38,789,201.33 | 39,837,558.11 |
| Fixedassets | 207,158,781.94 | 229,931,726.27 |
Constructioninprogress
| Constructioninprogress | 2,121,021.69 | 2,166,940.74 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 57,199,072.30 | 58,781,756.11 |
| Including:Dataresource | ||
| Developmentcosts | ||
| Including:Dataresource | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 3,575,852.25 | 920,609.18 |
| Othernon-currentassets | 830,991.15 | 830,991.15 |
| Totalnon-currentassets | 2,216,477,053.16 | 2,291,315,714.06 |
| Totalassets | 5,121,493,691.18 | 4,928,624,578.74 |
| Currentliabilities: | ||
| Short-termborrowings | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 753,437,100.68 | 524,671,742.33 |
| Accountspayable | 446,291,900.59 | 526,544,716.02 |
| Advancesfromcustomers | 30,678,302.75 | 1,647,441.22 |
| Contractliabilities | 34,394,966.41 | 26,149,334.52 |
| Employeebenefitspayable | 4,832,521.38 | 40,766,429.54 |
| Taxespayable | 2,247,738.26 | 2,069,482.65 |
| Otherpayables | 215,785,963.92 | 151,919,473.64 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 49,493,487.22 | 53,417,011.96 |
| Totalcurrentliabilities | 1,537,161,981.21 | 1,327,185,631.88 |
| Non-currentliabilities: | ||
| Long-termborrowings |
Bondspayable
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 31,091,031.75 | 32,795,896.48 |
| Deferredincometaxliabilities | 149,246,477.87 | 157,053,077.87 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 180,337,509.62 | 189,848,974.35 |
| Totalliabilities | 1,717,499,490.83 | 1,517,034,606.23 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 659,418,700.67 | 659,418,700.67 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 622,942,921.82 | 667,180,321.82 |
| Specificreserve | 19,193,992.27 | 19,010,793.43 |
| Surplusreserves | 363,695,592.34 | 363,695,592.34 |
| Retainedearnings | 1,033,050,486.25 | 996,592,057.25 |
| Totalowners’equity | 3,403,994,200.35 | 3,411,589,972.51 |
| Totalliabilitiesandowners’equity | 5,121,493,691.18 | 4,928,624,578.74 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
Item
| Item | H12024 | H12023 |
| 1.Revenue | 1,495,909,152.63 | 1,350,517,639.85 |
| Including:Operatingrevenue | 1,495,909,152.63 | 1,350,517,639.85 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 1,402,397,808.63 | 1,322,596,281.11 |
| Including:Costofsales | 1,247,104,070.05 | 1,168,898,203.83 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 8,959,091.13 | 7,827,255.58 |
| Sellingexpense | 62,703,122.61 | 62,131,032.17 |
| Administrativeexpense | 53,480,629.46 | 52,877,371.06 |
| R&Dexpense | 38,765,247.04 | 35,839,071.42 |
| Financecosts | -8,614,351.66 | -4,976,652.95 |
| Including:Interestexpense | 1,546,928.49 | 3,343,884.90 |
| Interestincome | 7,969,452.65 | 4,264,102.18 |
| Add:Otherincome | 1,953,702.37 | 3,299,056.52 |
| Returnoninvestment(“-”forloss) | 14,299,040.62 | 3,226,921.70 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -34,487,453.74 | 19,360,455.86 |
| Creditimpairmentloss(“-”forloss) | -17,838,282.66 | -14,547,351.17 |
| Assetimpairmentloss(“-”forloss) | -359,995.80 | -565,273.49 |
| Assetdisposalincome(“-”forloss) | 408,245.54 | 105,395,693.25 |
| 3.Operatingprofit(“-”forloss) | 57,486,600.33 | 144,090,861.41 |
| Add:Non-operatingincome | 1,070,935.19 | 495,538.97 |
| Less:Non-operatingexpense | 267,734.59 | 1,297,348.13 |
| 4.Profitbeforetax(“-”forloss) | 58,289,800.93 | 143,289,052.25 |
Less:Incometaxexpense
| Less:Incometaxexpense | 4,314,671.32 | 7,189,328.33 |
| 5.Netprofit(“-”fornetloss) | 53,975,129.61 | 136,099,723.92 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 53,975,129.61 | 136,099,723.92 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent(“-”fornetloss) | 50,097,655.15 | 131,937,324.66 |
| 5.2.2Netprofitattributabletonon-controllinginterests(“-”fornetloss) | 3,877,474.46 | 4,162,399.26 |
| 6.Othercomprehensiveincome,netoftax | -44,237,400.00 | 73,660,150.00 |
| AttributabletoownersoftheCompanyastheparent | -44,237,400.00 | 73,660,150.00 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | -44,237,400.00 | 73,660,150.00 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -44,237,400.00 | 73,660,150.00 |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 9,737,729.61 | 209,759,873.92 |
| AttributabletoownersoftheCompanyastheparent | 5,860,255.15 | 205,597,474.66 |
| Attributabletonon-controllinginterests | 3,877,474.46 | 4,162,399.26 |
8.Earningspershare
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.0710 | 0.1870 |
| 8.2Dilutedearningspershare | 0.0710 | 0.1870 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
Item
| Item | H12024 | H12023 |
| 1.Operatingrevenue | 1,420,095,519.32 | 1,245,166,233.55 |
| Less:Costofsales | 1,212,212,684.13 | 1,092,404,343.46 |
| Taxesandsurcharges | 5,596,041.85 | 4,338,250.54 |
| Sellingexpense | 57,773,822.40 | 55,517,272.45 |
| Administrativeexpense | 38,925,179.53 | 37,544,625.71 |
| R&Dexpense | 34,813,766.30 | 31,151,256.18 |
| Financecosts | -12,954,483.76 | -8,436,313.24 |
| Including:Interestexpense | 1,415,480.19 | 1,562,299.35 |
| Interestincome | 11,403,739.83 | 7,952,110.19 |
| Add:Otherincome | 1,756,921.35 | 3,200,820.43 |
| Returnoninvestment(“-”forloss) | 13,453,121.53 | 2,732,242.23 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 354,111.11 | |
| Creditimpairmentloss(“-”forloss) | -18,792,776.77 | -11,755,063.73 |
| Assetimpairmentloss(“-”forloss) | -349,743.48 | -410,653.17 |
| Assetdisposalincome(“-”forloss) | 421,678.54 | 105,393,483.13 |
| 2.Operatingprofit(“-”forloss) | 80,217,710.04 | 132,161,738.45 |
| Add:Non-operatingincome | 567,599.20 | |
| Less:Non-operatingexpense | 3,720.00 | 363,382.47 |
| 3.Profitbeforetax(“-”forloss) | 80,781,589.24 | 131,798,355.98 |
| Less:Incometaxexpense | 11,155,612.41 | -247,487.85 |
| 4.Netprofit(“-”fornetloss) | 69,625,976.83 | 132,045,843.83 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 69,625,976.83 | 132,045,843.83 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | -44,237,400.00 | 73,660,150.00 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | -44,237,400.00 | 73,660,150.00 |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod |
5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -44,237,400.00 | 73,660,150.00 |
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | ||
| 6.Totalcomprehensiveincome | 25,388,576.83 | 205,705,993.83 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
Item
| Item | H12024 | H12023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 881,118,416.96 | 1,010,313,942.34 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 10,606,127.65 | 69,957,787.95 |
| Cashgeneratedfromotheroperatingactivities | 12,788,451.27 | 11,524,017.72 |
| Subtotalofcashgeneratedfromoperatingactivities | 904,512,995.88 | 1,091,795,748.01 |
| Paymentsforcommoditiesandservices | 748,951,967.58 | 918,215,681.86 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 183,166,748.96 | 174,060,228.57 |
| Taxespaid | 38,069,979.90 | 23,195,064.69 |
| Cashusedinotheroperatingactivities | 96,138,812.44 | 81,121,589.64 |
| Subtotalofcashusedinoperatingactivities | 1,066,327,508.88 | 1,196,592,564.76 |
| Netcashgeneratedfrom/usedinoperatingactivities | -161,814,513.00 | -104,796,816.75 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 385,750,000.00 | 623,016,751.99 |
| Returnoninvestment | 14,299,040.62 | 4,508,124.22 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 76,305,099.30 | 57,844,735.80 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities |
Subtotalofcashgeneratedfrominvestingactivities
| Subtotalofcashgeneratedfrominvestingactivities | 476,354,139.92 | 685,369,612.01 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 11,017,090.96 | 135,352,075.57 |
| Paymentsforinvestments | 598,044,324.00 | 595,377,614.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 609,061,414.96 | 730,729,689.57 |
| Netcashgeneratedfrom/usedininvestingactivities | -132,707,275.04 | -45,360,077.56 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | ||
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | ||
| Repaymentofborrowings | ||
| Interestanddividendspaid | 33,167,547.83 | 8,886,489.92 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | ||
| Subtotalofcashusedinfinancingactivities | 33,167,547.83 | 8,886,489.92 |
| Netcashgeneratedfrom/usedinfinancingactivities | -33,167,547.83 | -8,886,489.92 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | ||
| 5.Netincreaseincashandcashequivalents | -327,689,335.87 | -159,043,384.23 |
| Add:Cashandcashequivalents,beginningoftheperiod | 971,629,523.46 | 810,350,966.05 |
| 6.Cashandcashequivalents,endoftheperiod | 643,940,187.59 | 651,307,581.82 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
Item
| Item | H12024 | H12023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 792,554,114.17 | 882,438,846.47 |
| Taxrebates | 5,571,468.42 | 20,491,423.94 |
| Cashgeneratedfromotheroperatingactivities | 10,526,359.52 | 9,587,042.20 |
| Subtotalofcashgeneratedfromoperatingactivities | 808,651,942.11 | 912,517,312.61 |
| Paymentsforcommoditiesandservices | 723,988,549.96 | 774,101,281.20 |
| Cashpaidtoandforemployees | 153,563,701.50 | 139,789,044.66 |
| Taxespaid | 28,596,026.83 | 7,394,673.54 |
| Cashusedinotheroperatingactivities | 77,233,383.77 | 247,440,184.71 |
| Subtotalofcashusedinoperatingactivities | 983,381,662.06 | 1,168,725,184.11 |
| Netcashgeneratedfrom/usedinoperatingactivities | -174,729,719.95 | -256,207,871.50 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 370,000,000.00 | 610,000,000.00 |
| Returnoninvestment | 13,453,121.53 | 4,337,174.74 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 76,421,678.54 | 57,813,485.80 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 459,874,800.07 | 672,150,660.54 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 2,211,874.73 | 8,705,239.80 |
| Paymentsforinvestments | 572,000,000.00 | 580,000,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 574,211,874.73 | 588,705,239.80 |
| Netcashgeneratedfrom/usedininvestingactivities | -114,337,074.66 | 83,445,420.74 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | ||
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | ||
| Repaymentofborrowings | ||
| Interestanddividendspaid | 33,167,547.83 | 8,773,914.91 |
| Cashusedinotherfinancingactivities |
Subtotalofcashusedinfinancingactivities
| Subtotalofcashusedinfinancingactivities | 33,167,547.83 | 8,773,914.91 |
| Netcashgeneratedfrom/usedinfinancingactivities | -33,167,547.83 | -8,773,914.91 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | ||
| 5.Netincreaseincashandcashequivalents | -322,234,342.44 | -181,536,365.67 |
| Add:Cashandcashequivalents,beginningoftheperiod | 899,689,740.60 | 704,659,776.14 |
| 6.Cashandcashequivalents,endoftheperiod | 577,455,398.16 | 523,123,410.47 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’EquityH12024
Unit:RMB
Item
| Item | H12024 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 705,692,507.00 | 640,509,675.84 | 667,180,321.82 | 19,432,089.52 | 363,695,592.34 | 1,002,436,724.71 | 3,398,946,911.23 | 71,121,208.35 | 3,470,068,119.58 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
Adjustmentforcorrectionofpreviouserror
| Adjustmentforcorrectionofpreviouserror | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 705,692,507.00 | 640,509,675.84 | 667,180,321.82 | 19,432,089.52 | 363,695,592.34 | 1,002,436,724.71 | 3,398,946,911.23 | 71,121,208.35 | 3,470,068,119.58 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -44,237,400.00 | 650,615.85 | 16,930,107.32 | -26,656,676.83 | 3,877,474.46 | -22,779,202.37 | |||||||
| 3.1Totalcomprehensiveincome | -44,237,400.00 | 50,097,655.15 | 5,860,255.15 | 3,877,474.46 | 9,737,729.61 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | |||||||||||||
| 3.3Profitdistribution | -33,167,547.83 | -33,167,547.83 | -33,167,547.83 | ||||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -33,167,547.83 | -33,167,547.83 | -33,167,547.83 | ||||||||||
| 3.3.4Other |
3.4Transferswithinowners’equity
| 3.4Transferswithinowners’equity | |||||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | 650,615.85 | 650,615.85 | 650,615.85 | ||||||||||
| 3.5.1Increaseintheperiod | 3,083,166.06 | 3,083,166.06 | 3,083,166.06 | ||||||||||
| 3.5.2Usedintheperiod | 2,432,550.21 | 2,432,550.21 | 2,432,550.21 | ||||||||||
| 3.6Other | |||||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 640,509,675.84 | 622,942,921.82 | 20,082,705.37 | 363,695,592.34 | 1,019,366,832.03 | 3,372,290,234.40 | 74,998,682.81 | 3,447,288,917.21 |
H12023
Unit:RMB
Item
| Item | H12023 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||||
3.Increase/decreaseintheperiod(“-”fordecrease)
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 73,660,150.00 | 2,177,810.33 | 124,880,399.59 | 200,718,359.92 | 4,162,399.26 | 204,880,759.18 | |||
| 3.1Totalcomprehensiveincome | 73,660,150.00 | 131,937,324.66 | 205,597,474.66 | 4,162,399.26 | 209,759,873.92 | ||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||
| 3.2.4Other | |||||||||
| 3.3Profitdistribution | -7,056,925.07 | -7,056,925.07 | -7,056,925.07 | ||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -7,056,925.07 | -7,056,925.07 | -7,056,925.07 | ||||||
| 3.3.4Other | |||||||||
| 3.4Transferswithinowners’equity | |||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | 2,177,810.33 | 2,177,810.33 | 2,177,810.33 | ||||||||||
| 3.5.1Increaseintheperiod | 4,598,473.04 | 4,598,473.04 | 4,598,473.04 | ||||||||||
| 3.5.2Usedintheperiod | 2,420,662.71 | 2,420,662.71 | 2,420,662.71 | ||||||||||
| 3.6Other | |||||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 640,133,963.01 | 729,001,854.07 | 21,026,667.08 | 349,197,725.72 | 1,040,376,308.94 | 3,485,429,025.82 | 76,626,571.93 | 3,562,055,597.75 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParentH12024
Unit:RMB
Item
| Item | H12024 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 705,692,507.00 | 659,418,700.67 | 667,180,321.82 | 19,010,793.43 | 363,695,592.34 | 996,592,057.25 | 3,411,589,972.51 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 667,180,321.82 | 19,010,793.43 | 363,695,592.34 | 996,592,057.25 | 3,411,589,972.51 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -44,237,400.00 | 183,198.84 | 36,458,429.00 | -7,595,772.16 | ||||||||
3.1Totalcomprehensiveincome
| 3.1Totalcomprehensiveincome | -44,237,400.00 | 69,625,976.83 | 25,388,576.83 | |||
| 3.2Capitalincreasedandreducedbyowners | ||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||
| 3.2.4Other | ||||||
| 3.3Profitdistribution | -33,167,547.83 | -33,167,547.83 | ||||
| 3.3.1Appropriationtosurplusreserves | ||||||
| 3.3.2Appropriationtoowners(orshareholders) | -33,167,547.83 | -33,167,547.83 | ||||
| 3.3.3Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves |
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 183,198.84 | 183,198.84 | ||||||||
| 3.5.1Increaseintheperiod | 2,333,560.45 | 2,333,560.45 | ||||||||
| 3.5.2Usedintheperiod | 2,150,361.61 | 2,150,361.61 | ||||||||
| 3.6Other | ||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 622,942,921.82 | 19,193,992.27 | 363,695,592.34 | 1,033,050,486.25 | 3,403,994,200.35 |
H12023
Unit:RMB
| Item | H12023 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
1.Balanceasattheendoftheperiodofprioryear
| 1.Balanceasattheendoftheperiodofprioryear | 705,692,507.00 | 659,418,700.67 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | |||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||
| Otheradjustments | ||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 73,660,150.00 | 2,177,810.33 | 124,988,918.76 | 200,826,879.09 | ||||||
| 3.1Totalcomprehensiveincome | 73,660,150.00 | 132,045,843.83 | 205,705,993.83 | |||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | ||||||||||
| 3.3Profitdistribution | -7,056,925.07 | -7,056,925.07 | ||||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 3.3.2Appropriationtoowners(orshareholders) | -7,056,925.07 | -7,056,925.07 |
3.3.3Other
| 3.3.3Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 2,177,810.33 | 2,177,810.33 | ||||||||
| 3.5.1Increaseintheperiod | 4,598,473.04 | 4,598,473.04 | ||||||||
| 3.5.2Usedintheperiod | 2,420,662.71 | 2,420,662.71 | ||||||||
| 3.6Other | ||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 729,001,854.07 | 21,026,667.08 | 349,197,725.72 | 998,157,101.49 | 3,462,494,556.03 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment: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,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.Anon-publicofferingofupto168,412,297newshareswasdeliberatedonandapprovedasaresolutionofthe2020AnnualGeneralMeetingheldon7May2021andapprovedbytheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)issuedbyChangchaiCompanyLimitedtheChinaSecuritiesRegulatoryCommission.On16June2021,thecapitalverificationreport"S.G.W[2021]B062"wasissuedbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),confirmingthattheCompanyhadissued144,318,181RMBordinaryshares(Ashares)inanon-publicoffering,withanadditionalpaid-incapital(sharecapital)ofRMB144,318,181.Afterthecapitalincrease,thetotalsharecapitaloftheCompanywasRMB705,692,507.TheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.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.
TheCompanyestablishedtheBoardofShareholders,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,Foundry,MachineProcessingPlant,Single-cylinderEnginePlant,Multi-cylinderEnginePlant，MachineSetBusinessDepartmentandOverseasBusinessDepartmentintheCompany.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson21August2024.TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand8subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2023)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.ContinuationTheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthefinancialinstruments,withdrawalmethodofthebaddebtprovisionoftheaccountsreceivable,themeasurementoftheinventoryandthedepreciationofthefixedassetsetc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriodThefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.MethodsforDeterminingMaterialityStandardsandSelectionCriteria
√Applicable□Notapplicable
Item
| Item | Materialitycriteria |
| Accountreceivablewithbaddebtprovisionbymajorsingleitem | AmountgreaterthanorequaltoRMB1,000,000.00 |
| Otherreceivableswithbaddebtprovisionbymajorsingleitem | AmountgreaterthanorequaltoRMB1,000,000.00 |
| Significantconstructioninprogress | AmountgreaterthanorequaltoRMB3,000,000.00 |
6.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)BusinesscombinationsnotunderthesamecontrolAbusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
7.CriteriaforJudgingControlandMethodsforPreparingConsolidatedFinancialStatements
(1)CriteriafordeterminingcontrolControlreferstotheauthorityheldbytheinvestorovertheinvestee,entailingparticipationinitsrelevantactivitiestoyieldvariablereturnsandthecapabilitytoinfluencetheinvestee'sreturnsthroughexercisingpower
overit.TheCompanywilljudgewhethertheseentitieshavebeencontrolledbytheinvesteebasedonitscomprehensiveconsiderationofrelevantfactsandcircumstances.Shouldanychangesinsuchfactsandcircumstancesaltertheelementsdefiningcontrol,areassessmentispromptlyconducted.Relevantfactsandcircumstancesprimarilyencompass:
①Thepurposeoftheinvestee'sestablishment.
②Theinvestee'spertinentactivitiesanddecision-makingprocessestherein.
③Whethertherightsheldbytheinvestorcurrentlyenableittodominatetheinvestee'srelevantactivities.
④Whethertheinvestorgainsvariablereturnsthroughparticipatingintheinvestee'srelevantactivities.
⑤Theinvestor'scapacitytoinfluencetheinvestee'sreturnsthroughexercisingpoweroverit.
⑥Therelationshipbetweentheinvestorandotherentities.
(2)ConsolidationscopeTheconsolidationscopeoftheCompany'sconsolidatedfinancialstatementsisdeterminedbasedoncontrol,encompassingallsubsidiaries(includingseparatelycontrolledentitiesbytheCompany)intheconsolidatedfinancialstatements.
(3)CombinationprocedureTheCompanypreparesconsolidatedfinancialstatementsbasedonitsownandeachsubsidiary'sfinancialstatements,alongwithotherrelevantinformation.WhentheCompanypreparestheconsolidatedfinancialstatements,itshallregardtheentireGroupasanaccountingentity,andshallreflecttheoverallfinancialstatus,operatingresultsandcashflowsoftheGroupinaccordancewiththerequirementsforrecognition,measurementandpresentationoftherelevantaccountingstandardforbusinessenterprises,aswellasunifiedaccountingpolicies.AllsubsidiariesincludedintheconsolidationscopeoftheconsolidatedfinancialstatementsapplyaccountingpoliciesandaccountingperiodsconsistentwiththeCompany.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.Inpreparingtheconsolidatedfinancialstatements,transactionsbetweentheCompanyanditssubsidiaries,aswellasamongsubsidiariesthemselves,areoffsettoreflecttheirimpactontheconsolidatedbalancesheet,consolidatedincomestatement,consolidatedcashflowstatement,andconsolidatedstatementofchangesinequity.Iftherearedifferencesintherecognitionofthesametransactionwhenviewedfromtheperspectiveofthecorporategroup'sconsolidatedfinancialstatementscomparedtowhenviewedfromthestandpointoftheCompanyorasubsidiaryastheaccountingentity,adjustmentsaremadefromtheperspectiveofthecorporategroup.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodarerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.Forsubsidiariesacquiredthroughbusinesscombinationsundercommoncontrol,adjustmentstotheirfinancial
statementsarebasedontheirassets,liabilities(includinggoodwillarisingfromtheacquisitionbytheultimatecontroller),andtheircarryingvalueinthefinancialstatementsoftheultimatecontroller.Forsubsidiariesacquiredthroughbusinesscombinationsnotundercommoncontrol,adjustmentstotheirfinancialstatementsarebasedonthefairvalueofidentifiablenetassetsasoftheacquisitiondate.
①AdditionofsubsidiariesorbusinessesIfsubsidiariesorbusinessesareaddedthroughbusinesscombinationsundercommoncontrolduringtheReportingPeriod,adjustmentsaremadetotheopeningbalancesoftheconsolidatedbalancesheet.Theincome,expenses,andprofitsofthesubsidiariesorbusinessesfromthebeginningofthecurrentperiodtotheendoftheReportingPeriodareincludedintheconsolidatedincomestatement.ThecashflowsofthesubsidiariesorbusinessesfromthebeginningofthecurrentperiodtotheendoftheReportingPeriodareincludedintheconsolidatedcashflowstatement.Comparativeitemsinthefinancialstatementsareadjustedaccordingly,treatingthereportingentityafterthecombinationasifithadexistedsincethedatewhencontrolwasobtainedbytheultimatecontroller.Ifcontroloveraninvesteeundercommoncontrolisachievedduetothereasonssuchastheadditionalinvestment,adjustmentsaremadeasifallpartiesparticipatinginthemergerexistedintheircurrentstatefromthedatewhencontrolwasobtainedbytheultimatecontroller.Fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.DuringtheReportingPeriod,ifthereisanincreaseinsubsidiariesorbusinessesduetobusinesscombinationsnotundercommoncontrol,theopeningbalancesoftheconsolidatedbalancesheetarenotadjusted.Theincome,expenses,andprofitsofthesubsidiaryorbusinessfromtheacquisitiondatetotheendoftheReportingPeriodareincludedintheconsolidatedincomestatement.ThecashflowsofthesubsidiaryorbusinessfromtheacquisitiondatetotheendoftheReportingPeriodareincludedintheconsolidatedcashflowstatement.Intheeventofacquiringcontroloveraninvesteepreviouslynotundercommoncontrolduetoadditionalinvestmentsorsimilarreasons,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
②DisposalofsubsidiariesorbusinessesA.GeneraldisposalmethodsDuringtheReportingPeriod,iftheCompanydisposesofasubsidiaryorbusiness,theincome,expenses,andprofitsofthesubsidiaryorbusinessfromthebeginningoftheperiodtothedisposaldateareincludedintheconsolidatedincomestatement.Thecashflowsofthesubsidiaryorbusinessfromthebeginningoftheperiodtothedisposaldateareincludedintheconsolidatedcashflowstatement.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrol
ceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.B.DisposalofsubsidiariesstepbystepIftheclauses,conditions,andeconomicimpact,bywhichtheequityinvestmentsofasubsidiaryweredisposedofstepbystepthroughmultipletransactionsuntilthecontrolwaslost,andthevarioustransactionsintheequityinvestmentsofasubsidiaryweredisposedof,fellunderoneormoreofthefollowingcircumstances,themultipletransactionsweregenerallyregardedasa"PackageDeal":
a.Thesetransactionsarereachedconcurrentlyoraftertheimpactthereofoneachotheristakenintoconsideration.b.Thesetransactionsmightachieveacompletebusinessresultonlyasawhole;c.Theoccurrenceofatransactiondependsontheoccurrenceof,ataminimum,oneanothertransaction;and/ord.Atransactionisconsidereduneconomicalseparatelybutisconsideredeconomicalwhenothertransactionsarealsotakenintoconsideration.Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
③AcquisitionofminorityequityofsubsidiariesThebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thesharepremiumofcapitalreserveswithintheconsolidatedbalancesheetshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted.
④TheCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthemInthecaseofpartialdisposaloflong-termequityinvestmentsinasubsidiarywithoutlossofcontrol,thedifferencebetweenthedisposalproceedsobtainedandtheproportionateshareofnetassetsofthesubsidiarycontinuouslycalculatedfromthepurchasedateormergerdatecorrespondingtothedisposaloflong-termequityinvestmentsisadjustedinthesharepremiumwithintheconsolidatedbalancesheet.Ifthesharepremiuminthecapitalreserveisinsufficienttooffsetthedifference,adjustmentsaremadetoretainedearnings.
8.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheGroupclassifiesjointarrangementsintojointoperationsandjointventures.AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.
9.RecognitionStandardforCashandCashEquivalentsIntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
10.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessConcerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintotherecordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankofChinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchangesshallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshallbeconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedbythePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamountconvertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currencyamountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbytheforeign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleofcapitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecordedintotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currencynon-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchangegain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothegain/lossofthecurrent
period.
(2)TranslationofforeigncurrencyTheassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
11.FinancialInstruments
(1)ClassificationofFinancialInstrumentsTheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:
financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)andfinancialassetsatfairvaluethroughprofitorlossFinancialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①FinancialassetsmeasuredatamortizedcostFinancialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.ForaccountsreceivableexcludingsignificantfinancingandaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,theinitialmeasurementshallbemadeatthecontracttransactionprice.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenrecoveredordisposed,thedifferencebetweenthepriceobtainedandthecarryingvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
②Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)includeaccountsreceivablefinancingandinvestmentinotherdebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueexceptforinterestcalculatedwithactualrates,impairmentlossesorgainsandexchangegainsorlossesshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintothecurrentprofitorloss.
③Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)includeinvestmentinotherequityinstruments,etc.whichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueshallberecordedintoothercomprehensiveincome.Thedividendsobtainedshallberecordedintothecurrentprofitorloss.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintoretainedearnings.
④FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
⑤FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandderivativefinancialliabilitieswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialliabilitiesshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthecarryingvalueandthepaidconsiderationshallberecordedintothecurrentprofitorloss.
⑥FinancialliabilitiesatamortizedcostFinancialliabilitiesatamortizedcostincludeshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayableswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthepaidconsiderationandthecarryingvalueofthefinancialliabilitiesshallberecordedintothecurrentprofitorloss.
(3)RecognitionBasisandMeasurementofTransferofFinancialAssetsWheretheCompanyhastransferrednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethetransferredfinancialasset.WheretheCompanydoesnottransferorretainnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itshalldealwithitaccordingtothecircumstancesasfollows,respectively:(1)Ifitgivesupitscontroloverthefinancialasset,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities;(2)Ifitdoesnotgiveupitscontroloverthefinancialasset,itshall,accordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset,recognizetherelatedfinancialassetandrecognizetherelevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueofthetransferredfinancialassetonthederecognitiondate;(2)Thesumofconsiderationreceivedfromthetransferoffinancialassets,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,theentirecarryingvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped,beapportionedaccordingtotheirrespectiverelativefairvalueonthetransferdate,andthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueoftheportionwhoserecognitionhasbeenstopped;(2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstopped,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensive
income.
(4)DerecognitionBasisofFinancialLiabilitiesAfinancialliabilityorpartofitcanbederecognizedafteritscurrentobligationhasbeenrelievedinfullorinpart.
(5)RecognitionofFairValueofFinancialAssetsandFinancialLiabilitiesThefairvalueoffinancialinstrumentswithanactivemarketisdeterminedbythequotedpriceintheactivemarket.Forfinancialinstrumentswithoutactivemarket,thefairvalueisdeterminedbyvaluationtechniques.TheCompanyadoptsthevaluationtechniquesapplicabletothecurrentconditionswhicharesupportedbysufficientdataandotherinformationforvaluation,andselectstheinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinassetorliabilitytransactions,withprioritytoobservableinputvalues.Unobservableinputvaluesareusedonlywhenrelevantobservableinputvaluesarenotavailableorpractical.
(6)Impairmentoffinancialinstrument
①ImpairmentmeasurementandaccountinghandlingoffinancialinstrumentBasedonexpectedcreditloss,theCompanyconductsimpairmenthandlingandconfirmscreditimpairmentlossforfinancialassetswhichismeasuredbyamortizedcost,debtinstrumentinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,financialguaranteecontract.Expectedcreditlossreferstoweightedaverageofcreditlossoffinancialinstrumentwhichtakestheriskofcontractbreachoccurrenceastheweight.Creditlossreferstothedifferencebetweenallcontractcashflowwhichisconvertedintocashaccordingtoactualinterestrateandreceivableaccordingtocontractandallcashflowwhichtobechargedasexpected,i.e.currentvalueofallcashshortage.Amongit,asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,itshouldbeconvertedintocashaccordingactualinterestrateofthisfinancialassetaftercreditadjustment.Lifetimeexpectedcreditlossesrefertothosecausedbypossibledefaultsduringtheentireexpecteddurationofafinancialinstrument.Theexpectedcreditlossesinthenext12monthsreferstothosecausedbythedefaulteventsofthefinancialinstrumentthatmayoccurwithin12months(ortheexpecteddurationiftheexpecteddurationofthefinancialinstrumentislessthan12months)afterthebalancesheetdate,andispartoftheexpectedcreditlossesintheentireduration.Oneachbalancesheetdate,theCompanyrespectivelymeasuredtheexpectedcreditlossesoffinancialinstrumentsindifferentstages.Ifthecreditriskofafinancialinstrumenthashadnosignificantincreasesinceitsinitialrecognition,theinstrumentshallfallinthefirststage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesinthefuture12months.Ifthecreditriskofafinancialinstrumenthashadasignificantincreasesinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,theinstrumentshallfallinthesecondstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Ifthecreditimpairmenthasoccurredsinceitsinitialrecognition,thefinancialinstrumentshallfallinthethirdstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Asforafinancialinstrumentwithlowcreditrisksonthebalancesheetdate,theCompanymeasuredthelossreservesaccordingtotheexpectedcreditlossesinthefuture12months,assumingthatitscreditriskhashadnosignificantincreasesinceitsinitialrecognition.Forfinancialinstrumentswithlowcreditrisksinstages1and2,theCompanycalculatedtheinterestincomeattheeffectiveinterestrateandonthecarryingamountoftheinstrumentswithoutdeductionsforprovisionsforassetimpairment.Forfinancialinstrumentsinstage3,interestincomewascalculatedattheeffectiveinterestratesand
ontheamortizedcostbyreducingtheprovisionsforassetimpairmentfromthecarryingamount.Fornotesreceivables,accountsreceivables,andfinancingreceivables,whethertherewasasignificantfinancialcomponentornot,theCompanymeasuredthelossreservesbasedontheexpectedcreditlossesfortheentireduration.A.AccountsreceivableFornotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingwithobjectiveevidenceindicatingimpairmentandthosesuitableforindividualevaluation,theCompanycarriesoutimpairmenttestseparatelytoconfirmexpectedcreditlossandprepareprovisionforimpairmentofsingleitems.Fornotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancing,contractassetsandlong-termreceivableswithoutobjectiveevidenceofimpairment,orasinglefinancialassetwithexpectedcreditlossimpossibletobeassessedatareasonablecost,theCompanydividesthenotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingintogroupsaccordingtothecharacteristicsofcreditrisk,andcalculatestheexpectedcreditlossbasedonreceivablegroups.Thebasisforrecognizinggroupsisasfollows:
Item
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Group1ofnotesreceivable | Allcommercialbills | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Group2ofnotesreceivable | Bank’sacceptancebillswithlowcreditrating | |
| Accountsreceivablefinancing | Bank’sacceptancebillswithhighcreditrating | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Accountsreceivable-creditriskcharacteristicsgroup | Accountsreceivableportfoliowithcreditperiod | Preparethecomparativelistbetweenagingofaccountsreceivableandexpectedcreditlossrateovertheentirelifeandcalculatetheexpectedcreditlossbyconsultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation.TheCompanytakesagingascreditriskcharacteristicsgroupsandcalculatestheexpectedcreditlossforaccountsreceivable. |
| Accountsreceivable-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Basisforrecognizinggroupsofotherreceivablesisasfollows:
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Group1ofotherreceivables | Otherreceivablesexcludingthosefrom | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfuture |
relatedparties-aging
group
| relatedparties-aginggroup | economicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife | |
| Group2ofotherreceivables | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
12.AccountsReceivableSee“11.FinancialInstruments”.
13.AccountsReceivableFinancingSee“11.FinancialInstruments”.
14.OtherReceivablesSee“11.FinancialInstruments”.
15.ContractAssetsContractAssetsmeansthattheCompanyisendowedwiththerighttochargetheconsiderationthroughtransferringanycommodityorservicetotheclient,andsuchrightdependsonotherfactorsexceptthepassingoftime.TheCompany’sunconditionalright(onlydependingonthepassingoftime)ofchargingtheconsiderationfromtheclientshallbeseparatelypresentedasreceivables.TherecognitionmethodandaccountingtreatmentmethodoftheestimatedcreditlossofcontractassetsareconsistentwiththatspecifiedinNotesV.11.
16.Inventory
(1)CategoryofInventoryInventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumedintheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtherawmaterials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourcedetc.
(2)PricingmethodPurchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthedispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproducts
accordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)DeterminationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionforfallingpriceofinventoryAtthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.Whenalltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingpricereserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,theinventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Ofwhich:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchasthefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproductsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
17.AssetsHeldforSale
(1)ClassificationunderheldforsalerecognitioncriteriaTheCompanyconfirmscertainnon-currentassetsordisposalgroupsasheldforsalewhentheysimultaneouslymeetthefollowingconditions:
①Theycanbesoldimmediatelyintheircurrentcondition,followingthecustomarypracticesobservedinsimilartransactions;and
②Thesaleishighlyprobable,meaningtheCompanyhasresolvedtoexecuteasalesplan,obtainedregulatoryapproval(whereapplicable),secureddefinitepurchasecommitments,andanticipatescompletionofthesalewithinoneyear.AdefinitepurchasecommitmentreferstoalegallybindingpurchaseagreementbetweentheCompanyandanotherparty.Thisagreementencompassesessentialtermssuchasthetransactionprice,timing,andsufficientlystringentpenaltyclausesforbreach,minimizingthelikelihoodofsignificantadjustmentsorcancellation.
(2)AccountingtreatmentforheldforsaleassetsTheCompanydoesnotdepreciateoramortizenon-currentassetsordisposalgroupsclassifiedasheldforsale.Iftheircarryingamountexceedsthenetamountderivedfromsubtractingthefairvaluelesssellingcosts,thecarryingamountshouldbewrittendowntothenetamount.Thewritten-downamountisrecognizedasanimpairmentloss,reflectedinthecurrentperiod'sincomestatement,whilealsoestablishingaprovisionforimpairmentofheldforsaleassets.
Non-currentassetsordisposalgroupsclassifiedasheld-for-saleonthedateofacquisitionshallbemeasuredatthelowerofnetamountofinitialmeasurementamountminussalescostandthatoffairvalueminussellingexpenses,assumingtheywerenotclassifiedasheld-for-saleduringinitialmeasurement.Theaforementionedprinciplesapplytoallnon-currentassets,excludinginvestmentpropertiesmeasuredusingthefairvaluemodel,biologicalassetsmeasuredatfairvaluelesssellingcosts,assetsarisingfromemployeebenefits,deferredtaxassets,financialassetsgovernedbyaccountingstandardsrelatedtofinancialinstruments,andrightsarisingfrominsurancecontractsregulatedbyaccountingstandardsrelatedtoinsurancecontracts.
18.Long-termEquityInvestments
(1)JudgmentstandardofjointcontrolandsignificantinfluencesJointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)RecognitionforinitialinvestmentcostTheinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeansTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecost
whichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)AninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethodWheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)AninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethodWheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheCompany,shouldbeadjustedaccordingtotheaccountingpoliciesoftheCompanyandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheCompanyaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,
shouldnotbeneutralized.TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theCompanyshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoowners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheCompanyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasis
oftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
19.InvestmentRealEstateMeasurementmodeofinvestmentrealestate:
MeasurementofcostmethodDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
20.FixedAssets
(1)RecognitionConditionsFixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
Categoryoffixedassets
| Categoryoffixedassets | Method | Usefullife | Annualdeprecation |
Housingandbuilding
| Housingandbuilding | Averagemethodofusefullife | 20-40years | 2.50%-5% |
| Machineryequipment | Averagemethodofusefullife | 6-15years | 6.67%-16.67% |
| Transportationequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
| Otherequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLeaseTheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
1)Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevantconditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscouldbetransferredtotheCompany;
2)TheCompanyownsthechoosingrightforpurchasingandleasingthefixedassets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinanceleasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyontheleasestartingdate;
3)Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%oraboveoftheusefullifeoftheleasefixedassets;
4)ThecurrentvalueoftheminimumleasepaymentontheleasestartingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;
5)ThenatureoftheleaseassetsisspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.Thefixedassetsbyfinanceleaseshouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumleasepaymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedastheentryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancingexpense.Fortheinitialdirectexpensesoccurintheleasenegotiationsandthesigningprocessoftheleasecontractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedbyadoptingtheactualinterestrateduringtheperiodoftheleaseterm.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife
21.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectprice
payable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
22.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)TheperiodofcapitalizationofborrowingcostsTheborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesandinventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
23.IntangibleAssets
(1)UsefulLifeandtheBasisforitsDetermination,Estimation,AmortizationMethodologyorReviewProcedures
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)AmortizationmethodandtermofintangibleassetsAsfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)TheScopeofR&DExpenditureCollectionandtheRelatedAccountingTreatmentTheinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.TheCompanycollectsthecostsofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentcostsforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentcostsoftheintangibleassetscanbereliablymeasured.
24.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
25.Long-termDeferredExpensesLong-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
26.ContractLiabilitiesContractliabilitiesrefertotheCompany’sobligationsintransferringcommoditiesorservicestotheclientforthereceivedorpredictedconsideration.Contractassetsandcontractliabilitiesunderthesamecontractshallbepresentedbasedonthenetamount.
27.EmployeeBenefits
(1)AccountingTreatmentofShort-termCompensationShort-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemissionTheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.DefinedcontributionplansDuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
28.Provisions
(1)CriteriaofprovisionsOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)MeasurementofprovisionsTheCompanyshallmeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.TheCompanyshallcheckthebookvalueoftheprovisionsontheBalanceSheetDate.Ifthereisanyconclusive
evidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
29.RevenueAccountingpoliciesforrecognitionandmeasurementofrevenue:
WhentheCompanyfulfillsitsdueperformanceobligations(namelywhentheclientobtainsthecontroloverrelatedcommoditiesorservices),revenuesshallberecognizedbasedontheobligation’samortizedtransactionprice.PerformanceObligationreferstotheCompany’spromiseoftransferringcommoditiesorservicesthatcanbeclearlydefinedtotheclient.TransactionPricereferstotheconsiderationamountdulychargedbytheCompanyfortransferringcommoditiesorservicestotheclient,excludinganyamountchargedbythethirdpartyandanyamountpredictedtobereturnedtotheclient.ControlOverRelevantCommoditiesmeansthattheuseofcommoditiescanbecontrolledandalmostalleconomicinterestscanbeobtained.Onthecontractcommencementday,theCompanyshallevaluatethecontract,recognizeindividualperformanceobligationandconfirmthatindividualperformanceobligationisfulfilledinacertainperiod.Whenoneofthefollowingconditionsismet,suchperformanceobligationshallbedeemedasfulfilledinacertainperiod,andtheCompanyshallrecognizeitasrevenuewithinacertainperiodaccordingtotheperformanceschedule:(1)theclientobtainsandconsumestheeconomicinterestsresultingfromtheCompany’sperformanceofcontractwhileperformingthecontract;(2)theclientisabletocontrolthecommoditiesunderconstructionduringtheperformance;(3)commoditiesproducedbytheCompanyduringtheperformancepossesstheirreplaceablepurpose,andtheCompanyhastherighttochargeallfinishedpartsduringthecontractperiod;otherwise,theCompanyshallrecognizetherevenuewhentheclientobtainsthecontroloverrelevantcommoditiesorservices.TheCompanyshalladopttheInputMethodtodeterminethePerformanceSchedule.Namely,thePerformanceScheduleshallbedeterminedaccordingtotheCompany’sinputforfulfillingperformanceobligations.WhenthePerformanceSchedulecannotbereasonablydeterminedandallresultingcostsarepredictedtobecompensated,theCompanyshallrecognizetherevenuebasedontheresultingcostamounttillthePerformanceSchedulecanbereasonablydetermined.Whenthecontractinvolvestwoormorethantwoperformanceobligations,thetransactionpriceshallbeamortizedtoeachsingleperformanceobligationonthecontractcommencementdayaccordingtotherelativeproportionoftheindependentsellingpriceofcommoditiesorservicesundereachsingleperformanceobligation.Ifanysolidevidenceprovesthatthecontractdiscountorvariableconsiderationonlyrelatestooneormorethanone(notall)performanceobligationunderthecontract,theCompanyshallamortizethecontractdiscountorvariableconsiderationtooneormorethanonerelatedperformanceobligations.IndependentsellingpricereferstothepriceadoptedbytheCompanytoindependentlysellcommoditiesorservicestotheclient.However,independentsellingpricecannotbedirectlyobserved.TheCompanyshallestimatetheindependentsellingpricebycomprehensivelyconsideringallrelatedinformationthatcanbereasonablyobtainedandmaximallyadoptingtheobservableinputvalue.VariableConsiderationIfanyvariableconsiderationexistsinthecontract,theCompanyshalldeterminetheoptimalestimationofthevariableconsiderationbasedontheexpectedvaluesorthemostpossibleamount.Thevariableconsideration’stransactionpriceshallbeincludedwithoutexceedingthetotalrevenueamountrecognizedwithouttheriskofsignificantrestitutionwhenalluncertaintiesareeliminated.Oneachbalancesheetday,theCompanyshallre-estimatethevariableconsiderationamounttobeincludedinthetransactionprice.ConsiderationPayabletotheClient
Ifanyconsiderationpayabletotheclientexistsinthecontract,theCompanyshallusesuchconsiderationtooffsetthetransactionpriceunlesssuchconsiderationispaidforacquiringotherclearly-definedcommoditiesorservicesfromtheclient,andwritedownthecurrentrevenueatthelatertimebetweenthetimeofrecognizingrelevantrevenuesandthetimeofpaying(orpromisingthepayment)theconsiderationtotheclient.SaleswiththeQualityAssuranceForsaleswiththeQualityAssurance,iftheQualityAssuranceinvolvesanotherseparateserviceexceptfortheguaranteeofallsoldcommoditiesorservicesmeetingallestablishedstandards,theQualityAssuranceshallconstituteasinglePerformanceObligation;otherwise,theCompanyshallmakecorrespondingaccountingtreatmenttotheQualityAssuranceaccordingtoASBENo.13--Contingency.MainResponsibilityPerson/AgentAccordingtowhetherthecontrolovercommoditiesorservicesisobtainedbeforetheyaretransferredtotheclient,theCompanycanjudgewhetheritisMainResponsibilityPersonorAgentbasedonitsstatusduringthetransaction.IftheCompanycancontrolcommoditiesorservicesbeforetheyaretransferredtotheclient,theCompanyshallbeMainResponsibilityPerson,andrevenuesshallberecognizedaccordingtothetotalconsiderationamountreceivedortobereceived;otherwise,theCompanyshallbeAgent,andrevenuesshallberecognizedaccordingtothecommissionorservicefeespredictedtobedulycharged.However,suchamountshallbedeterminedbasedonthenetamountafterdeductingotheramountspayabletootherrelatedpartiesfromthetotalconsiderationreceivedortobedulyreceivedorthefixedcommissionamountorproportion.SpecificmethodsThespecificmethodsoftheCompany'srevenuerecognitionareasfollows:
ThesalecontractbetweentheCompanyanditscustomersusuallycontainsonlytheperformanceobligationforthetransferofgoods,whichissatisfiedatapointintime.Thefollowingrequirementsmustbemettoconfirmtherevenueofdomesticproducts:TheCompanyhasdeliveredthegoodstothecustomerinaccordancewiththecontractandthecustomerhasacceptedthegoods.Thepaymenthasbeenrecoveredorthereceiptvoucherhasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.Thecustomerhasobtainedcontroloftherelevantgoods.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.Thefollowingrequirementsmustbemettoconfirmtherevenueofexportproducts:TheCompanyhasdeclaredtheproductsinaccordancewiththecontract,obtainedthebillsoflading,andreceivedthepaymentorobtainedthereceiptvoucherandtherelatedeconomicbenefitsarelikelytoflowin.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.InterestRevenueInterestRevenueshallbedeterminedaccordingtothetimeoftheCompany’suseofmonetarycapitalandtheactualinterestrate.
30.ContractCosts
(1)CostsfromAcquiringContractIftheincrementalcostresultingfromtheCompany’sacquiringofcontract(namelycostsmerelyresultingfromtheacquiringofcontract)ispredictedtoberetrieved,itshallberecognizedasanassets,amortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Iftheassets’amortizationperioddoesnotexceedoneyear,itshallbeimmediatelyincludedintothecurrentprofitandloss.OtherexpensesresultingfromtheCompany’sacquiringofcontractshall
alsobeincludedintothecurrentprofitandlossunlessitisexplicitlybornebytheclient.
(2)CostsfromExecutingContractTheCompany’scostsfromexecutingcontractisnotcoveredbyotherASBEexceptforRevenueStandards,andwhenthefollowingsituationsaremet,suchcostscanberecognizedasanassets:①thecostsaredirectlyrelatedtoacurrentorpredictedcontract;②thecostsincreasetheCompany’sresourcesappliedtofulfillperformanceobligationsinthefuture;③thecostsarepredictedtoberetrieved.Therecognizedassetsshallbeamortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Ifthebookvalueofcontractcostsishigherthanthedifferenceofthefollowingtwoitems,correspondingdepreciationreservesshallbecountedandwithdrawnanditshallberecognizedastheassetsdepreciationloss:①theresidualconsiderationpredictedtobeacquiredbytransferringcommoditiesrelatedtotheassets;②thecostspredictedtooccurduetothetransferofrelatedcommodities.Ifthedifferencebetween①and②ishigherthanthebookvalueofcontractcostsduetoanychangeinvariousfactorscausingdepreciationinpreviousperiods,itshallberestitutedtothewithdrawnassetsdepreciationreservesandincludedinthecurrentprofitandloss.However,thebookvalueofrestitutedcontractcostsshallnotexceedthebookvalueoftheassetsonthedayofrestitutionbasedonthehypothesisthatdepreciationreservesarenotcountedandwithdrawn.
31.GovernmentGrants
(1)TypeAgovernmentgrantmeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentgrantsconsistofthegovernmentgrantspertinenttoassetsandgovernmentgrantspertinenttoincomeaccordingtotherelevantgovernmentdocuments.Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisoftheCompanyclassifiesthegovernmentgrantspertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidiesThegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentgrantsaswellascouldbeacquired.Ifthegovernmentgrantsarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentgrantsarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatmentThegovernmentgrantspertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentgrantspertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,andshallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.Forgovernmentgrantsthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.
GovernmentgrantsrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.Thegovernmentgrantsrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentgrantsassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.
32.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)BasisofrecognizingthedeferredincometaxassetsAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,adeferredtaxassetshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)BasisofrecognizingthedeferredincometaxliabilitiesAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxliabilityshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
33.Lease
(1)AccountingtreatmentforleasesasthelesseeOnthebeginningdateoftheleaseterm,theCompanywillrecognizetheleasewithaleasetermnotexceeding12monthsandexcludethepurchaseoptionasashort-termlease.Leaseswithlowervaluewhenasingleleasedassetisabrand-newassetareidentifiedaslow-valueassetleases.IftheCompanysubletsorexpectstosublettheleasedassets,theoriginalleaseshallnotbedeemedasalow-valueassetlease.TheCompanyrecordsthepaymentsofshort-termandlow-valueassetleasesincurredduringeachperiodoftheleasetermintherelevantassetcostsortheprofitorlossforthecurrentperiodbythestraight-linemethod.TheCompanywillrecognizeright-of-useassetsandleaseliabilitiesontheinceptiondateoftheleaseterm,excludingtheaboveshort-termandlow-valueassetleases.
①Right-of-useassetsTheright-of-useassetismeasuredatcostandthecostshallcomprise:
A.theamountoftheinitialmeasurementoftheleaseliabilities;B.anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived;
C.anyinitialdirectcostsincurredbythelessee;D.anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.TheCompanydepreciatestheright-of-useassetusingthestraight-linemethod.Ifitisreasonablycertainthatownershipoftheleasedasset(s)willbeobtainedattheendoftheleaseterm,theCompanydepreciatestheleasedasset(s)overits/theirremainingservicelife.Ifitisnotreasonablycertainthattheownershipoftheleaseholdpropertywillbeobtainedattheendoftheleaseterm,theCompanywilldepreciatetheleasedasset(s)overtheleasetermortheremainingservicelife,whicheverisshorter.
②LeaseliabilitiesAtthecommencementdate,theCompanymeasurestheleaseliabilitiesatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,TheCompanyusestheinterestrateimplicitinleaseastherateofdiscountwhencalculatingthepresentvalueoftheleasepayments.Theincrementalinterestrateonborrowingofthelesseewillbeusedastherateofdiscount,iftheinterestrateimplicitinleasecannotbedetermined.Thedifferencebetweentheleasepaymentanditspresentvalueisregardedasanunrecognizedfinancingexpense.Interestexpenseisrecognizedatthediscountrateofthepresentvalueoftherecognizedleasepaymentduringeachperiodoftheleasetermandisrecordedintheprofitandlossforthecurrentperiod.Variableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilitiesareincludedincurrentprofitorlosswhenactuallyincurred.Afterthecommencementdate,ifthereisachangeinthefollowingitems:(a)actualfixedpayments;(b)amountsexpectedtobepayableunderresidualvalueguarantees;(c)anindexorarateusedtodetermineleasepayments;(d)assessmentresultorexerciseofpurchaseoption,extensionoptionorterminationoption.,theCompanyremeasurestheleaseliabilitiesbasedonthepresentvalueofleasepaymentsafterchanges,andadjuststhecarryingamountoftheright-of-useassetaccordingly.Ifthecarryingamountoftheright-of-useassetisreducedtozerobutthereshallbeafurtherreductionintheleaseliabilities,theremainingamountshallberecognizedintoprofitorloss.
(2)AccountingtreatmentofleasesasthelessorTheCompanyaslessorOnthestartdateoftheleaseterm,theCompanydividestheleasethatsubstantiallytransfersalmostallrisksandrewardsrelatedtotheownershipoftheleasedassetsintofinanceleases,exceptforoperatingleases.
①OperatingleaseTheCompanyrecognizestheleasepaymentsreceivableasrentalearningsineachperiodwithintheleasetermonastraight-linebasis.Theinitialdirectcostsrelatedtotheoperatingleasearecapitalized,amortizedwithintheleasetermonthesamebasisastherecognitionofrentalearnings,andincludedintheprofitorlossforthecurrentperiod.VariableleasepaymentsobtainedbytheCompanyinrelationtooperatingleasesthatarenotincludedintheleasereceivableareincludedintheprofitorlossforthecurrentperiodwhentheyareactuallyincurred.
②FinancialleaseAtthecommencementdate,theCompanyrecognizesthefinanceleasepaymentreceivablebasedonthenetinvestmentinthelease(sumofthepresentvalueofunguaranteedresidualvalueandleasereceiptsthatarenotreceivedatthecommencementdate,discountedbytheinterestrateimplicitinthelease),andderecognizesassetsheldunderthefinancelease.TheCompanycalculatesandrecognizesinterestincomeusingtheinterestrateimplicitintheleaseovertheleaseterm.Variableleasepaymentsnotincludedinthemeasurementofthenetinvestmentintheleasearechargedasprofitorlossintheperiodsinwhichtheyareincurred.
34.OtherSignificantAccountingPoliciesandAccountingEstimatesTheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
(1)ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforotherreasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.
(2)MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.
(3)InventoryfallingpricereservesTheCompanyfollowstheinventoryaccountingpolicyandcarriesoutmeasurementbasedonwhichissmallerbetweenthecostandthenetrealizablevalue.Ifthecostofinventoriesishigherthanitsnetrealizablevalue,thentheinventoryfallingpricesreserveswereimplemented.Theimpairmentofinventoriestonetrealizablevalueisbasedonanassessmentofthemarketabilityoftheinventoriesandtheirnetrealizablevalue.Themanagementshalldeterminetheimpairmentofinventoriesafterobtainingreliableevidencewhiletakingintoaccountthepurposeofholdinginventories,theeffectofitemsafterthebalancesheetdate,andotherfactors.Differencesbetweenactualresultsandoriginalestimateswillaffectthecarryingvalueofinventoriesandtheprovisionorreversalofreversesforfallingpricesofinventoriesintheperiodinwhichtheestimatesarechanged.
(4)DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueis
wideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
(5)Reservesforlong-termassetsimpairmentTheCompanydeterminesatthebalancesheetdatewhetherthereisanyindicationthatanon-currentasset,otherthanafinancialasset,maybeimpaired.Forintangibleassetswithanuncertainusefullife,impairmenttestsshallbeconductedwhenthereisanindicationofimpairmentbesidestheannualimpairmenttest.Othernon-currentassetsotherthanfinancialassetsshallbetestedforimpairmentwhenthereisanindicationthatthecarryingamountisirrecoverable.Animpairmentisindicatedwhenthecarryingamountofanassetorassetgroupisgreaterthantherecoverableamount,whichisthehigherofthefairvalueminusdisposalexpensesandthepresentvalueofestimatedfuturecashflows.Thenetvalueofthefairvalueminusdisposalexpensesisdeterminedbyreferringtothenegotiablesalepriceorobservablemarketpriceofsimilarassetsinafairtransactionanddeductingincrementalcostsdirectlyattributabletothedisposaloftheasset.Estimatingthepresentvalueoffuturecashflowsrequiressignificantjudgmentswithrespecttotheproductionvolumeoftheasset(orassetgroup),thesellingprice,therelatedoperatingcostsandthediscountrateusedincalculatingthepresentvalue.TheCompanyusesallavailablerelevantinformationinestimatingrecoverableamounts,includingprojectionsofvolumes,sellingpricesandrelatedoperatingcostsbasedonreasonableandsupportableassumptions.
(6)DepreciationandamortizationTheCompanydepreciatesandamortizesinvestmentproperties,fixedassetsandintangibleassetsonastraight-linebasiswithintheirservicelivesaftertakingintoaccounttheirresidualvalues.TheCompanyregularlyreviewsservicelivestodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.TheservicelifeisdeterminedbytheCompanybasedonpastexperiencewithsimilarassetsandexpectedtechnologicalupdates.Depreciationandamortizationexpenseswillbeadjustedinthefutureperiodifthereisasignificantchangeinpreviousestimates.
(7)DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.
(8)IncometaxInthenormaloperatingactivitiesoftheCompany,theultimatetaxtreatmentandcalculationofcertaintransactionsaresubjecttocertainuncertainties.Whethersomeitemscanbedisbursedbeforetaxrequirestheapprovalofthetaxauthorities.Ifthefinaldeterminationofthesetaxmattersdiffersfromtheamountsinitiallyestimated,thedifferencewillhaveanimpactoncurrentanddeferredincometaxesintheperiodinwhichtheyarefinallydetermined.
35.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
□Applicable√Notapplicable
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstoFinancialStatementItemsattheBeginningoftheYearoftheFirstImplementationoftheNewAccountingStandardsImplementedsince2024
□Applicable√Notapplicable
VI.Taxation
1.MainTaxesandTaxRate
Categoryoftaxes
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Payabletosalesrevenue | 13%,9%,6%,5% |
| Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
| Enterpriseincometax | Taxableincome | 25%、15%、5% |
| Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Name | Incometaxrate |
| ChangchaiCompany,Limited | 15% |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHorizonInvestmentCo.,Ltd. | 25% |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 25% |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 15% |
| JiangsuChangchaiMachineryCo.,Ltd. | 25% |
| ChangzhouXingshengRealEstateManagementCo.,Ltd. | 5% |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 15% |
2.TaxPreference
On30November2021,theCompanyobtainedtheCertificatesforHigh-techEnterprisesagain,anditstillenjoys15-percentpreferentialrateforcorporateincometaxduringtheReportingPeriod;theCompany’scontrollingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2030inaccordancewiththeNoticeoftheMinistryofFinance,theGeneral
AdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopmentandMinistryofFinanceAnnouncementNo.23[2020]AnnouncementoftheMinistryofFinance,theStateAdministrationofTaxationandtheNationalDevelopmentandReformCommissiononContinuingtheEnterpriseIncomeTaxPolicyfortheGreatWesternDevelopment.On6November2023,thewholly-ownedsubsidiaryChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.obtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod;Thewholly-ownedsubsidiaryChangzhouXingshengRealEstateManagementCo.,Ltd.iseligiblesmallenterprisewithlowprofitsandshallpaythecorporateincometaxattaxrate5%forsmallenterpriseswithlowprofitsduringtheReportingPeriod;thesubsidiaryZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.obtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod.VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 146,931.23 | 157,238.05 |
| Bankdeposits | 679,526,223.62 | 999,604,998.68 |
| Othermonetaryassets | 112,246,945.05 | 84,105,730.14 |
| Total | 791,920,099.90 | 1,083,867,966.87 |
Othernotes:Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB108,979,912.31,ofwhichRMB107,195,110.82wasthecashdepositforbankacceptancebills,RMB897,966.00wascashdepositforL/G,andRMB886,835.49wascashdepositforenvironment.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 402,900,783.53 | 225,641,429.94 |
| Ofwhich: | ||
| Stocks | 50,661,877.00 | 85,295,021.00 |
| Financialproducts | 352,238,906.53 | 140,346,408.94 |
| Ofwhich: | ||
| Total | 402,900,783.53 | 225,641,429.94 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 115,592,564.84 | 161,632,567.94 |
| Total | 115,592,564.84 | 161,632,567.94 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Notesreceivableforwhichbaddebtprovisionseparatelyaccrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Ofwhich: | ||||||||||
| Notesreceivableforwhichbaddebtprovisionaccruedbygroup | 115,592,564.84 | 100.00% | 0.00 | 0.00% | 115,592,564.84 | 161,632,567.94 | 100.00% | 0.00 | 0.00% | 161,632,567.94 |
| Ofwhich: | ||||||||||
| Bankacceptancebills | 115,592,564.84 | 100.00% | 0.00 | 0.00% | 115,592,564.84 | 161,632,567.94 | 100.00% | 0.00 | 0.00% | 161,632,567.94 |
| Total | 115,592,564.84 | 100.00% | 0.00 | 0.00% | 115,592,564.84 | 161,632,567.94 | 100.00% | 0.00 | 0.00% | 161,632,567.94 |
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable:
□Applicable√Notapplicable
(3)NotesReceivablePledgedbytheCompanyatthePeriod-end:None
(4)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
Item
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 0.00 | 46,144,123.81 |
| Total | 0.00 | 46,144,123.81 |
4.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Within1year(including1year) | 1,197,542,854.82 | 313,597,375.85 |
| 1to2years | 2,622,686.63 | 1,873,298.19 |
| 2to3years | 4,709,550.82 | 4,436,548.28 |
| Over3years | 144,681,837.96 | 144,403,241.11 |
| 3to4years | 5,446,856.35 | 5,278,022.33 |
| 4to5years | 1,895,735.78 | 1,815,570.52 |
| Over5years | 137,339,245.83 | 137,309,648.26 |
| Total | 1,349,556,930.23 | 464,310,463.43 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 33,805,182.71 | 2.50% | 33,805,182.71 | 100% | 0.00 | 33,805,182.71 | 7.28% | 33,805,182.71 | 100.00% | 0.00 |
Ofwhich:
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 1,315,751,747.52 | 97.50% | 131,802,594.96 | 10.02% | 1,183,949,152.56 | 430,505,280.72 | 92.72% | 113,962,120.81 | 26.47% | 316,543,159.91 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 1,315,751,747.52 | 97.50% | 131,802,594.96 | 10.02% | 1,183,949,152.56 | 430,505,280.72 | 92.72% | 113,962,120.81 | 26.47% | 316,543,159.91 |
| Total | 1,349,556,930.23 | 100.00% | 165,607,777.67 | 12.27% | 1,183,949,152.56 | 464,310,463.43 | 100.00% | 147,767,303.52 | 31.83% | 316,543,159.91 |
Individualprovisionforbaddebts:33,805,182.71yuan,including31,609,904.23yuanforlargeimpairmentitems,asfollows:
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer2 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer3 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer4 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 100.00% | Difficulttorecover |
| Customer5 | 2,322,278.50 | 2,322,278.50 | 2,322,278.50 | 2,322,278.50 | 100.00% | Difficulttorecover |
| Customer6 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer7 | 1,726,935.65 | 1,726,935.65 | 1,726,935.65 | 1,726,935.65 | 100.00% | Difficulttorecover |
| Customer8 | 2,025,880.18 | 2,025,880.18 | 2,025,880.18 | 2,025,880.18 | 100.00% | Difficulttorecover |
Customer9
| Customer9 | 5,972,101.90 | 5,972,101.90 | 5,972,101.90 | 5,972,101.90 | 100.00% | Difficulttorecover |
| Customer10 | 4,592,679.05 | 4,592,679.05 | 4,592,679.05 | 4,592,679.05 | 100.00% | Difficulttorecover |
| Total | 31,609,904.23 | 31,609,904.23 | 31,609,904.23 | 31,609,904.23 | -- | -- |
Provisionforbaddebtsbycombination:provisionforbaddebtsbycombinationbasedoncreditriskcharacteristicsof13,180,2594.96yuan
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 1,197,542,854.82 | 23,950,857.10 | 2.00% |
| 1to2years | 2,622,686.63 | 131,134.33 | 5.00% |
| 2to3years | 4,246,306.96 | 636,946.04 | 15.00% |
| 3to4years | 5,446,746.35 | 1,634,023.91 | 30.00% |
| 4to5years | 1,108,797.95 | 665,278.77 | 60.00% |
| Over5years | 104,784,354.81 | 104,784,354.81 | 100.00% |
| Total | 1,315,751,747.52 | 131,802,594.96 | -- |
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable:
□Applicable√Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionseparatelyaccrued | 33,805,182.71 | 33,805,182.71 | ||||
| Withdrawalofbaddebtprovisionbygroup | 113,962,120.81 | 17,840,474.15 | 131,802,594.96 | |||
| Total | 147,767,303.52 | 17,840,474.15 | 165,607,777.67 | |||
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(4)ThereWereNoAccountsReceivablewithActualVerificationduringtheReportingPeriod.
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
Nameofthe
entity
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 646,622,440.97 | 0.00 | 646,622,440.97 | 47.91% | 12,932,448.82 |
| Customer2 | 117,517,494.00 | 0.00 | 117,517,494.00 | 8.71% | 2,350,349.88 |
| Customer3 | 70,421,083.72 | 0.00 | 70,421,083.72 | 5.22% | 1,408,421.67 |
| Customer4 | 57,254,239.63 | 0.00 | 57,254,239.63 | 4.24% | 1,145,084.79 |
| Customer5 | 48,331,650.00 | 0.00 | 48,331,650.00 | 3.58% | 966,633.00 |
| Total | 940,146,908.32 | 0.00 | 940,146,908.32 | 69.66% | 18,802,938.16 |
5.AccountsReceivableFinancing
(1)AccountsReceivableFinancingListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 12,282,312.54 | 195,875,948.92 |
| Total | 12,282,312.54 | 195,875,948.92 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Baddebtprovision | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
separatelyaccrued
| separatelyaccrued | ||||||||||
| Ofwhich: | ||||||||||
| Baddebtprovisionaccruedbygroup | 12,282,312.54 | 100.00% | 0.00 | 0.00% | 12,282,312.54 | 195,875,948.92 | 100.00% | 0.00 | 0.00% | 195,875,948.92 |
| Ofwhich: | ||||||||||
| Bankacceptancebills | 12,282,312.54 | 100.00% | 0.00 | 0.00% | 12,282,312.54 | 195,875,948.92 | 100.00% | 0.00 | 0.00% | 195,875,948.92 |
| Total | 12,282,312.54 | 100.00% | 0.00 | 0.00% | 12,282,312.54 | 195,875,948.92 | 100.00% | 0.00 | 0.00% | 195,875,948.92 |
(3)NotesReceivablePledgedbytheCompanyatthePeriod-end:None
(4)AccountsreceivablefinancingwhichhadendorsedbytheCompanyorhaddiscountedbuthadnotdueattheperiod-end
Unit:RMB
| Category | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 86,540,386.86 | |
| Total | 86,540,386.86 |
6.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 0.00 | 0.00 |
| Dividendreceivable | 0.00 | 0.00 |
| Otherreceivables | 2,566,508.89 | 49,699,753.61 |
| Total | 2,566,508.89 | 49,699,753.61 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
Nature
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Marginandcashpledge | 625,636.85 | 595,723.55 |
| Intercoursefunds | 22,723,784.78 | 69,845,564.95 |
| Pettycashandborrowingsbyemployees | 902,563.54 | 922,370.54 |
| Other | 13,614,317.60 | 13,638,079.94 |
| Total | 37,866,302.77 | 85,001,738.98 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Within1year(including1year) | 6,969,619.41 | 56,704,032.54 |
| 1to2years | 2,646,786.23 | 115,776.00 |
| 2to3years | 67,513.23 | 12,802.00 |
| Over3years | 28,182,383.90 | 28,169,128.44 |
| 3to4years | 31,232.23 | 30,000.00 |
| 4to5years | 12,023.23 | |
| Over5years | 28,139,128.44 | 28,139,128.44 |
| Total | 37,866,302.77 | 85,001,738.98 |
3)DisclosurebyWithdrawalMethodsforBadDebts
√Applicable□NotapplicableProvisionforbaddebtsbasedongeneralmodelofexpectedcreditlosses
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2024 | 211,671.73 | 2,715,705.99 | 32,374,607.65 | 35,301,985.37 |
Balanceof1January2024intheCurrentPeriod
| Balanceof1January2024intheCurrentPeriod | ||||
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | -2,297.69 | 106.20 | -2,191.49 | |
| ReversaloftheCurrentPeriod | ||||
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof30June2024 | 209,374.04 | 2,715,812.19 | 32,374,607.65 | 35,299,793.88 |
Thebasisforthedivisionofeachstageandthewithdrawalproportionofbaddebtprovision:NoneChangesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Others | |||
| Baddebtprovisionseparatelyaccrued | 5,282,163.35 | 5,282,163.35 | ||||
| Withdrawalofbaddebtprovisionbygroup | 30,019,822.02 | 19,588.00 | 21,779.49 | 30,017,630.53 | ||
| Total | 35,301,985.37 | 19,588.00 | 21,779.49 | 35,299,793.88 | ||
5)ThereWereNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
6)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 7.76% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 7.53% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 4.29% | 1,626,483.25 |
| ChangchaiGroupSettlementCenter | Intercoursefunds | 1,128,676.16 | Over5years | 2.98% | 1,128,676.16 |
| ChuangyeDieselEngineWorkshop | Intercoursefunds | 1,000,000.00 | Over5years | 2.64% | 1,000,000.00 |
| Total | 9,548,347.43 | 25.20% | 9,548,347.43 |
7.Prepayments
(1)PrepaymentListedbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 13,280,773.47 | 91.95% | 11,196,498.47 | 90.78% |
| 1to2years | 865,236.33 | 5.99% | 840,617.01 | 6.82% |
| 2to3years | 291,256.36 | 2.02% | 289,345.37 | 2.35% |
| Over3years | 6,850.00 | 0.05% | 6,850.00 | 0.05% |
| Total | 14,444,116.16 | -- | 12,333,310.85 | -- |
Notesofthereasonsoftheprepaymentagingover1yearwithsignificantamountbutfailedsettledintime:Therewasnoprepaymentwithsignificantamountagingoveroneyearasoftheperiod-end.
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepayment
targetwasRMB8,326,500accountingfor57.65%ofthetotalendingbalanceofprepayments.
8.InventoriesWhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNo
(1)CategoryofInventory
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 236,679,735.80 | 5,259,727.39 | 231,420,008.41 | 199,751,010.25 | 7,529,878.82 | 192,221,131.43 |
| Materialsprocessedoncommission | 14,289,320.09 | 0.00 | 14,289,320.09 | 12,422,107.02 | 0.00 | 12,422,107.02 |
| Goodsinprocess | 74,393,358.21 | 6,585,732.46 | 67,807,625.75 | 90,202,210.05 | 6,761,129.14 | 83,441,080.91 |
| Finishedgoods | 330,693,761.05 | 27,731,258.67 | 302,962,502.38 | 527,412,149.21 | 27,690,142.42 | 499,722,006.79 |
| Lowpricedandeasilywornarticles | 3,235,562.29 | 0.00 | 3,235,562.29 | 1,413,859.53 | 0.00 | 1,413,859.53 |
| Total | 659,291,737.44 | 39,576,718.52 | 619,715,018.92 | 831,201,336.06 | 41,981,150.38 | 789,220,185.68 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Others | Transferred-backorcharged-off | Others | |||
| Rawmaterials | 7,529,878.82 | 156,525.32 | 2,426,676.75 | 5,259,727.39 | ||
Goodsinprocess
| Goodsinprocess | 6,761,129.14 | 175,396.68 | 6,585,732.46 | |||
| Finishedgoods | 27,690,142.42 | 203,470.48 | 162,354.23 | 27,731,258.67 | ||
| Total | 41,981,150.38 | 359,995.80 | 2,764,427.66 | 39,576,718.52 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories.
(4)ThereWasNoInventoryPledgedforGuaranteeatthePeriod-end.
9.Held-for-saleAssets
Unit:RMB
| Item | Endingbookbalance | Impairmentallowance | Endingbookvalue | Fairvalue | Estimateddisposalcost | Estimateddisposaltime |
| Housesandbuildings | 2,725,225.86 | 2,725,225.86 | 75,721,813.00 | |||
| Machineryequipment | 200,020.98 | 200,020.98 | 10,349,066.00 | |||
| Otherequipment | 26,204.27 | 26,204.27 | 1,433,792.00 | |||
| Total | 2,951,451.11 | 2,951,451.11 | 87,504,671.00 |
10.CurrentPortionofNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Investmentsindebtobligationsduewithinoneyear | 0.00 | 40,773,509.75 |
| Total | 0.00 | 40,773,509.75 |
(1)InvestmentsinDebtObligationsDuewithinOneYear
√Applicable□Notapplicable1）InvestmentsinDebtObligationsDuewithinOneYear
Unit:RMB
| Groupname | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Three-yearfixed | 0.00 | 0.00 | 40,773,509.75 | 40,773,509.75 | ||
termdeposit
| termdeposit | ||||||
| Total | 0.00 | 0.00 | 40,773,509.75 | 40,773,509.75 |
11.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 13,195,639.44 | 19,940,871.92 |
| Prepaidcorporateincometax | 547,841.16 | 908,233.33 |
| Prepaidexpense | 23,222.29 | 61,399.59 |
| Total | 13,766,702.89 | 20,910,504.84 |
12.OtherEquityInstrumentInvestment
Unit:RMB
| Item | Beginningbalance | Gainsrecordedinothercomprehensiveincomeinthecurrentperiod | Lossesrecordedinothercomprehensiveincomeinthecurrentperiod | Accumulativegainsrecordedinothercomprehensiveincomeinthecurrentperiod | Accumulativelossesrecordedinothercomprehensiveincomeinthecurrentperiod | Dividendincomerecognizedincurrentyear | Endingbalance | Reasonforassigningtomeasureinfairvalueofwhichchangesincludedothercomprehensiveincome |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 418,457,025.67 | 318,457,025.67 | 418,457,025.67 | Non-tradingequityinvestment | ||||
| Otherequityinstrument | 551,031,000.00 | 52,044,000.00 | 414,417,000.00 | 10,998,000.00 | 498,987,000.00 | Non-tradingequityinvestment |
investmentmeasuredbyfairvalue
| investmentmeasuredbyfairvalue | |||||||
| Total | 969,488,025.67 | 52,044,000.00 | 732,874,025.67 | 10,998,000.00 | 917,444,025.67 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
| Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
| FotonMotorCo.,Ltd. | 283,341,000.00 | Non-tradingequityinvestment | ||||
| BankofJiangsu | 10,998,000.00 | 131,076,000.00 | Non-tradingequityinvestment | |||
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 318,457,025.67 | Non-tradingequityinvestment |
Othernotes:
Thecorporatesecuritiesofaccommodationbusinessstillonlendingattheperiod-end:1,777,600sharesofFotonMotorCo.,Ltd.
13.Long-termEquityInvestment
Unit:RMB
| Investees | Beginning | Beginning | Increase/decrease | Ending | Ending | |||||||
| Addit | Redu | Gain | Adjus | Chan | Cash | Withd | Other | |||||
balan
ce(carryingvalue)
| balance(carryingvalue) | balanceofdepreciationreserves | ionalinvestment | cedinvestment | orlossrecognizedundertheequitymethod | tmentofothercomprehensiveincome | gesinotherequity | bonusorprofitannouncedtoissue | rawalofdepreciationreserves | balance(carryingvalue) | balanceofdepreciationreserves | ||
| I.Jointventure | ||||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| II.Associatedenterprises | ||||||||||||
| BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
| Subtotal | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
| Total | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
14.OtherNon-currentFinancialAssets
Unit:RMB
15.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Housesandbuildings | Total |
| I.Originalcarryingvalue | ||
| 1.Beginningbalance | 93,077,479.52 | 93,077,479.52 |
| 2.Increasedamountoftheperiod | ||
| (1)Outsourcing | ||
| (2)Transferfrominventories/fixedassets/constructioninprogress | ||
| (3)Enterprisecombinationincrease | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 93,077,479.52 | 93,077,479.52 |
| II.Accumulativedepreciationandaccumulativeamortization | ||
| 1.Beginningbalance | 53,239,921.41 | 53,239,921.41 |
| 2.Increasedamountoftheperiod | 1,048,356.78 | 1,048,356.78 |
| (1)Withdrawaloramortization | 1,048,356.78 | 1,048,356.78 |
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 54,288,278.19 | 54,288,278.19 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod | ||
| (1)Withdrawal |
Item
| Item | Endingbalance | Beginningbalance |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | 412,914,576.80 | 412,914,576.80 |
| Total | 412,914,576.80 | 412,914,576.80 |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue | ||
| 1.Endingcarryingvalue | 38,789,201.33 | 38,789,201.33 |
| 2.Beginningcarryingvalue | 39,837,558.11 | 39,837,558.11 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
16.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 637,435,729.73 | 675,596,920.95 |
| Disposaloffixedassets | ||
| Total | 637,435,729.73 | 675,596,920.95 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 683,973,527.80 | 1,117,118,836.89 | 16,527,248.93 | 61,820,174.73 | 1,879,439,788.35 |
| 2.Increasedamountoftheperiod | 2,418,461.01 | 5,309.73 | 321,824.49 | 2,745,595.23 | |
| (1)Purchase | 5,309.73 | 43,595.00 | 48,904.73 |
(2)Transferfromconstructioninprogress
| (2)Transferfromconstructioninprogress | 2,418,461.01 | 278,229.49 | 2,696,690.50 | ||
| (3)Enterprisecombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 48,062,644.51 | 20,515,448.25 | 169,264.00 | 1,078,316.68 | 69,825,673.44 |
| (1)Disposalorscrap | 9,343,083.81 | 516,924.98 | 9,860,008.79 | ||
| (2)Classifiedasheld-for-saleassets | 48,062,644.51 | 11,172,364.44 | 169,264.00 | 561,391.70 | 59,965,664.65 |
| 4.Endingbalance | 635,910,883.29 | 1,099,021,849.65 | 16,363,294.66 | 61,063,682.54 | 1,812,359,710.14 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 331,778,938.87 | 822,480,700.96 | 10,101,717.80 | 39,184,289.07 | 1,203,545,646.70 |
| 2.Increasedamountoftheperiod | 10,635,019.26 | 23,789,836.43 | 699,796.64 | 2,799,499.71 | 37,924,152.04 |
| (1)Withdrawal | 10,635,019.26 | 23,789,836.43 | 699,796.64 | 2,799,499.71 | 37,924,152.04 |
| 3.Decreasedamountoftheperiod | 45,337,418.65 | 20,292,066.44 | 169,264.00 | 1,044,289.94 | 66,843,039.03 |
| (1)Disposalorscrap | 9,319,722.98 | 509,102.51 | 9,828,825.49 | ||
| (2)Classifiedasheld-for-saleassets | 45,337,418.65 | 10,972,343.46 | 169,264.00 | 535,187.43 | 57,014,213.54 |
| 4.Endingbalance | 297,076,539.48 | 825,978,470.95 | 10,632,250.44 | 40,939,498.84 | 1,174,626,759.71 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 297,220.70 | 297,220.70 |
(2)ListofTemporarilyIdleFixedAssets
Unit:RMB
Item
| Item | Originalcarryingvalue | Accumulativedepreciation | Depreciationreserves | Carryingvalue | Note |
| Machineryequipment | 309,407.50 | 12,186.80 | 297,220.70 |
17.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 4,308,776.18 | 4,253,721.78 |
| Engineeringmaterials | 21,900.40 | 21,900.40 |
| Total | 4,330,676.58 | 4,275,622.18 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carrying | Depreciatio | Carrying | Carrying | Depreciati | Carrying | |
2.Increasedamountoftheperiod
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposalorscrap | |||||
| 4.Endingbalance | 297,220.70 | 297,220.70 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 338,834,343.81 | 272,746,158.00 | 5,731,044.22 | 20,124,183.70 | 637,435,729.73 |
| 2.Beginningcarryingvalue | 352,194,588.93 | 294,340,915.23 | 6,425,531.13 | 22,635,885.66 | 675,596,920.95 |
amount
| amount | nreserves | value | amount | onreserves | value | |
| Innovationcapacityconstructionoftechnologycenter | 981,532.17 | 981,532.17 | 981,532.17 | 981,532.17 | ||
| Equipmenttobeinstalledandpaymentforprojects | 3,327,244.01 | 3,327,244.01 | 3,272,189.61 | 3,272,189.61 | ||
| Total | 4,308,776.18 | 4,308,776.18 | 4,253,721.78 | 4,253,721.78 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| Innovationcapacityconstructionoftechnologycenter | 96,066,200.00 | 981,532.17 | 981,532.17 | Completed | Self-raisedandraisedfunds | ||||||
| Total | 96,066,200.00 | 981,532.17 | 981,532.17 |
(3)ImpairmentTestofConstructioninProgress
□Applicable√Notapplicable
(4)EngineeringMaterials
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Engineeringmaterials | 21,900.40 | 21,900.40 | 21,900.40 | 21,900.40 | ||
| Total | 21,900.40 | 21,900.40 | 21,900.40 | 21,900.40 | ||
18.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 205,187,775.71 | 20,419,604.15 | 5,538,000.00 | 1,650,973.47 | 232,796,353.33 |
| 2.Increasedamountoftheperiod | |||||
| (1)Purchase | |||||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 205,187,775.71 | 20,419,604.15 | 5,538,000.00 | 1,650,973.47 | 232,796,353.33 |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 63,473,422.16 | 16,541,171.87 | 3,800,133.10 | 523,440.52 | 84,338,167.65 |
| 2.Increasedamountoftheperiod | 1,980,481.75 | 708,456.08 | 274,399.98 | 83,520.96 | 3,046,858.77 |
(1)Withdrawal
| (1)Withdrawal | 1,980,481.75 | 708,456.08 | 274,399.98 | 83,520.96 | 3,046,858.77 |
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 65,453,903.91 | 17,249,627.95 | 4,074,533.08 | 606,961.48 | 87,385,026.42 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 139,733,871.80 | 3,169,976.20 | 1,463,466.92 | 1,044,011.99 | 145,411,326.91 |
| 2.Beginningcarryingvalue | 141,714,353.55 | 3,878,432.28 | 1,737,866.90 | 1,127,532.95 | 148,458,185.68 |
19.Long-termPrepaidExpenses
Unit:RMB
| Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
| Trademarkrenewalfee | 268,208.12 | 31,831.68 | 33,226.81 | 266,812.99 | |
| Externalpowerlineaccessproject | 2,754,000.00 | 206,615.33 | 2,547,384.67 | ||
| Processingreservedfloorpavingandlightinginstallationworks | 5,205,750.54 | 260,287.50 | 4,945,463.04 | ||
| Total | 8,227,958.66 | 31,831.68 | 500,129.64 | 7,759,660.70 |
20.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Baddebtprovision | 24,153,483.66 | 3,623,022.55 | 6,427,652.90 | 967,779.48 |
| Inventoryfallingpricereserves | 2,707,033.40 | 506,633.20 | 2,707,033.40 | 506,633.20 |
| Impairmentoffixedassets | 297,220.70 | 44,583.11 | 297,220.70 | 44,583.11 |
| Total | 27,157,737.76 | 4,174,238.86 | 9,431,907.00 | 1,518,995.79 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 5,489,891.06 | 823,483.65 | 5,489,891.06 | 823,483.65 |
| Changesoffairvalueofotherequityinstrumentinvestments | 994,680,304.41 | 154,234,538.20 | 1,102,931,935.12 | 171,019,971.87 |
| Total | 1,000,170,195.47 | 155,058,021.85 | 1,108,421,826.18 | 171,843,455.52 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibleloss | 137,917,562.93 | 137,917,562.93 |
| Baddebtprovision | 176,754,087.89 | 176,641,635.99 |
Fallingpricereservesofinventories
| Fallingpricereservesofinventories | 36,869,685.12 | 39,274,116.98 |
| Total | 351,541,335.94 | 353,833,315.90 |
(4)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| 2024 | 3,605,384.25 | 3,605,384.25 | |
| 2025 | 5,250,820.81 | 5,250,820.81 | |
| 2026 | 9,546,495.23 | 9,546,495.23 | |
| 2027 | 68,877,350.74 | 68,877,350.74 | |
| 2028 | 50,637,511.90 | 50,637,511.90 | |
| Total | 137,917,562.93 | 137,917,562.93 |
21.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Advancespaymentofequipments | 830,991.15 | 830,991.15 | 2,578,776.77 | 2,578,776.77 | ||
| Total | 830,991.15 | 830,991.15 | 2,578,776.77 | 2,578,776.77 | ||
22.AssetswithRestrictedOwnershiporRightofUse
Unit:RMB
| Item | Period-end | Period-beginning | ||||||
| Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | |
| Monetaryfunds--othermonetaryfunds | 108,979,912.31 | 108,979,912.31 | Occupiedascashdeposit | Bankacceptancedeposit,environmentalperformancebond,etc. | 76,238,443.41 | 76,238,443.41 | Occupiedascashdeposit | Bankacceptancedeposit,environmentalperformancebond,etc. |
| Fixedassets–housesand | 1,245,851.51 | 1,245,851.51 | Mortgaged | Mortgagedforissuing | 1,332,812.48 | 1,332,812.48 | Mortgaged | Mortgagedforissuing |
buildings
| buildings | bankacceptancebills | bankacceptancebills | ||||||
| Intangibleassets--landuserights | 828,429.65 | 828,429.65 | Mortgaged | Mortgagedforissuingbankacceptancebills | 847,162.28 | 847,162.28 | Mortgaged | Mortgagedforissuingbankacceptancebills |
| Fixedassets--machineryandequipment | 21,597,853.38 | 21,597,853.38 | Mortgaged | Mortgagedforissuingbankacceptancebills | 23,728,733.18 | 23,728,733.18 | Mortgaged | Mortgagedforissuingbankacceptancebills |
| Notesreceivable--outstandingtransferrednotes | 46,144,123.81 | 46,144,123.81 | Obligationtopayunexpiredtransferrednotes | EndorsedbytheCompanyattheperiod-endandnotdueonthebalancesheetdate | 55,979,832.64 | 55,979,832.64 | Obligationtopaybillsdiscountedbeforematurity | DiscountedbytheCompanyattheperiod-endandnotdueonthebalancesheetdate |
| Total | 178,796,170.66 | 178,796,170.66 | 158,126,983.99 | 158,126,983.99 |
23.NotesPayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 756,037,100.68 | 528,139,582.33 |
| Total | 756,037,100.68 | 528,139,582.33 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
24.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 589,863,799.52 | 641,484,184.05 |
| Total | 589,863,799.52 | 641,484,184.05 |
(2)SignificantAccountsPayableAgingoverOneYearorOverdue
Unit:RMB
Item
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Paymentforgoods | 37,259,326.16 | Suspendingcooperationwithsupplierstoliquidatethepayment |
| Paymentforequipment | 4,576,029.01 | Equipmentwarranty |
| Total | 41,835,355.17 |
25.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 0.00 | 0.00 |
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 202,782,329.24 | 155,131,948.98 |
| Total | 206,673,763.07 | 159,023,382.81 |
(1)DividendsPayable
Unit:RMB
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 3,546,895.46 | 2,671,042.33 |
| Intercoursefundsamongunits | 16,052,352.25 | 11,107,514.80 |
| Intercoursefundsamongindividuals | 415,689.65 | 398,761.04 |
| Salesdiscountandthreeguarantees | 165,240,406.47 | 125,096,632.36 |
| Other | 17,526,985.41 | 15,857,998.45 |
Item
| Item | Endingbalance | Beginningbalance |
| 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 |
Total
| Total | 202,782,329.24 | 155,131,948.98 |
2)SignificantOtherPayablesAgingoverOneYearorOverdueThesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
26.AdvancesfromCustomers
(1)ListofAdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Rentreceivedinadvance | 678,302.75 | 647,441.22 |
| Landcompensationreceivedinadvance | 30,000,000.00 | 1,000,000.00 |
| Total | 30,678,302.75 | 1,647,441.22 |
(2)Therewerenosignificantadvancesfromcustomersagingoveroneyearoroverdue.
27.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Contractliabilities | 37,517,411.19 | 33,352,877.66 |
| Total | 37,517,411.19 | 33,352,877.66 |
Therewerenosignificantcontractliabilitiesagingoveroneyearattheendoftheperiod.
28.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 47,738,883.57 | 146,844,195.94 | 183,393,037.79 | 11,190,041.72 |
| II.Post-employmentbenefit-definedcontributionplans | 16,356,909.67 | 16,356,909.67 | ||
| III.Terminationbenefits |
IV.Currentportionofotherbenefits
| IV.Currentportionofotherbenefits | ||||
| Total | 47,738,883.57 | 163,201,105.61 | 199,749,947.46 | 11,190,041.72 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 40,196,939.41 | 123,031,773.43 | 159,614,971.93 | 3,613,740.91 |
| 2.Employeewelfare | 1,592.74 | 1,685,033.60 | 1,685,033.60 | 1,592.74 |
| 3.Socialinsurance | 9,287,879.34 | 9,287,879.34 | ||
| Ofwhich:Medicalinsurancepremiums | 7,588,439.46 | 7,588,439.46 | ||
| Work-relatedinjuryinsurance | 914,597.04 | 914,597.04 | ||
| Maternityinsurance | 784,842.84 | 784,842.84 | ||
| 4.Housingfund | 10,753,058.00 | 10,753,058.00 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 7,540,351.42 | 2,086,451.57 | 2,052,094.92 | 7,574,708.07 |
| 6.Short-termabsencewithsalary | ||||
| 7.Short-termprofitsharingscheme | ||||
| Total | 47,738,883.57 | 146,844,195.94 | 183,393,037.79 | 11,190,041.72 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 15,858,886.58 | 15,858,886.58 | ||
| 2.Unemploymentinsurance | 498,023.09 | 498,023.09 | ||
| 3.Enterpriseannuities | ||||
| Total | 16,356,909.67 | 16,356,909.67 |
29.TaxesPayable
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| VAT | 1,905,690.13 | 189,045.23 |
| Corporateincometax | 501,235.23 | 1,686,812.32 |
| Personalincometax | 155,738.26 | 312,930.09 |
| Urbanmaintenanceandconstructiontax | 116,252.32 | 881,885.27 |
| Propertytax | 1,582,563.25 | 1,678,590.95 |
| Landusetax | 935,265.32 | 943,261.64 |
| Stampduty | 295,260.23 | 349,554.08 |
| EducationSurcharge | 50,254.32 | 36,841.50 |
| Comprehensivefees | 110,523.52 | 120,291.58 |
| Environmentalprotectiontax | 31,957.08 | 31,957.08 |
| Total | 5,684,739.66 | 6,231,169.74 |
30.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 352,652.36 | 393,790.53 |
| Transportationstoragefee | 654,893.25 | 830,881.27 |
| Electriccharge | 1,385,265.48 | 1,457,500.39 |
| Taxtobetransferred | 2,810,623.25 | 2,830,696.17 |
| Estimatedsharevalueaddedtax | 2,231,194.94 | 2,230,084.52 |
| Obligationtopaybillstransferredbeforematurity | 46,144,123.81 | 55,979,832.64 |
| Otherwithholdingexpenses | 4,517,256.58 | 3,347,180.44 |
| Total | 58,096,009.67 | 67,069,965.96 |
31.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
Governmentgrants
| Governmentgrants | 32,795,896.48 | 1,704,864.73 | 31,091,031.75 | Governmentappropriation | |
| Total | 32,795,896.48 | 1,704,864.73 | 31,091,031.75 | -- |
Othernotes:
Liabilityitemsinvolvinggovernmentgrants
Unit:RMB
| Item | Beginningbalance | Amountofnewsubsidy | AmountrecordedintootherincomeintheReportingPeriod | Endingbalance | Relatedtoassets/relatedincome |
| Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengines | 10,001,835.00 | 759,633.00 | 9,242,202.00 | Relatedtoassets | |
| Removecompensation | 17,181,816.74 | 332,986.81 | 16,848,829.93 | Relatedtoassets | |
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 5,612,244.74 | 612,244.92 | 4,999,999.82 | Relatedtoassets | |
| Total | 32,795,896.48 | 1,704,864.73 | 31,091,031.75 |
32.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 705,692,507.00 | 705,692,507.00 | |||||
33.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
Capitalpremium(premiumonstock)
| Capitalpremium(premiumonstock) | 620,338,243.21 | 620,338,243.21 | |
| Othercapitalreserves | 20,171,432.63 | 20,171,432.63 | |
| Total | 640,509,675.84 | 640,509,675.84 |
34.OtherComprehensiveIncome
Unit:RMB
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 667,180,321.82 | -52,044,000.00 | -7,806,600.00 | -44,237,400.00 | 622,942,921.82 | |||
| Changesinfairvalueofotherequityinstrumentinvestment | 667,180,321.82 | -52,044,000.00 | -7,806,600.00 | -44,237,400.00 | 622,942,921.82 | |||
| Totalofothercomprehensiveincome | 667,180,321.82 | -52,044,000.00 | -7,806,600.00 | -44,237,400.00 | 622,942,921.82 | |||
Othernotes,includingtheadjustmentoftheeffectivegain/lossoncashflowhedgestotheinitialrecognizedamount:None
35.SpecificReserve
Unit:RMB
Item
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 19,432,089.52 | 3,083,166.06 | 2,432,550.21 | 20,082,705.37 |
| Total | 19,432,089.52 | 3,083,166.06 | 2,432,550.21 | 20,082,705.37 |
36.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 350,538,734.44 | 350,538,734.44 | ||
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 363,695,592.34 | 363,695,592.34 |
37.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 1,002,436,724.71 | 915,495,909.35 |
| Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | ||
| Beginningbalanceofretainedearningsafteradjustments | 1,002,436,724.71 | 915,495,909.35 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 50,097,655.15 | 131,937,324.66 |
| Less:Withdrawalofstatutorysurplusreserves | ||
| Withdrawalofdiscretionalsurplusreserves | ||
| Withdrawalofgeneralreserve | ||
| Dividendofordinaryshares | 33,167,547.83 | 7,056,925.07 |
payable
| payable | ||
| Dividendsofordinarysharestransferredassharecapital | ||
| Endingretainedearnings | 1,019,366,832.03 | 1,040,376,308.94 |
Listofadjustmentofbeginningretainedearnings:
(1)RMB0.00beginningretainedearningswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
(2)RMB0.00beginningretainedearningswasaffectedbychangesinaccountingpolicies.
(3)RMB0.00beginningretainedearningswasaffectedbycorrectionofsignificantaccountingerrors.
(4)RMB0.00beginningretainedearningswasaffectedbychangesincombinationscopearisingfromsamecontrol.
(5)RMB0.00beginningretainedearningswasaffectedtotallybyotheradjustments.
38.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,477,768,073.74 | 1,232,962,844.33 | 1,333,099,509.22 | 1,156,456,220.22 |
| Otheroperations | 18,141,078.89 | 14,141,225.72 | 17,418,130.63 | 12,441,983.61 |
| Total | 1,495,909,152.63 | 1,247,104,070.05 | 1,350,517,639.85 | 1,168,898,203.83 |
Informationofoperatingincomeandoperatingcost:
Unit:RMB
| Categoryofcontracts | Segment1 | Total | ||
| OperatingRevenue | Operatingcost | OperatingRevenue | Operatingcost | |
| BusinessType | ||||
| Ofwhich: | ||||
| Single-cylinderdieselengines | 473,252,480.60 | 408,535,961.19 | 473,252,480.60 | 408,535,961.19 |
| Multi-cylinderdieselengines | 850,224,657.96 | 697,174,644.25 | 850,224,657.96 | 697,174,644.25 |
| Otherproducts | 117,713,164.75 | 95,789,399.32 | 117,713,164.75 | 95,789,399.32 |
| Fittings | 36,577,770.43 | 31,462,839.57 | 36,577,770.43 | 31,462,839.57 |
| Classificationbyoperatingregion | ||||
| Ofwhich: | ||||
| Salesindomesticmarket | 1,321,666,902.16 | 1,089,037,564.13 | 1,321,666,902.16 | 1,089,037,564.13 |
| Exportsales | 156,101,171.58 | 143,925,280.20 | 156,101,171.58 | 143,925,280.20 |
Total
| Total | 1,477,768,073.74 | 1,232,962,844.33 | 1,477,768,073.74 | 1,232,962,844.33 |
Informationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0attheperiod-end.
39.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 1,206,347.65 | 1,006,348.45 |
| Educationsurcharge | 892,462.87 | 718,820.35 |
| Propertytax | 3,460,896.66 | 3,169,527.35 |
| Landusetax | 2,237,252.61 | 2,197,586.41 |
| Vehicleandvesselusetax | 403.52 | 403.52 |
| Stampduty | 1,054,326.09 | 628,716.88 |
| Environmenttax | 102,132.33 | 100,381.82 |
| Other | 5,269.40 | 5,470.80 |
| Total | 8,959,091.13 | 7,827,255.58 |
40.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 27,401,986.86 | 28,128,076.17 |
| Officeexpenses | 5,393,754.21 | 5,597,629.95 |
| Depreciationandamortization | 8,902,514.69 | 9,181,948.43 |
| Safetyexpenses | 2,432,550.21 | 1,768,064.08 |
| Repaircharge | 529,280.85 | 589,852.63 |
| Inventoryscrapandinventoryloss(profit) | 133,065.37 | -651,231.55 |
| Other | 8,687,477.27 | 8,263,031.35 |
| Total | 53,480,629.46 | 52,877,371.06 |
41.SellingExpense
Unit:RMB
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 21,109,483.94 | 17,034,869.46 |
| Officeexpenses | 4,106,380.87 | 3,936,262.82 |
| Threeguarantees | 36,051,097.32 | 35,094,246.66 |
| Other | 1,436,160.48 | 6,065,653.23 |
| Total | 62,703,122.61 | 62,131,032.17 |
42.DevelopmentCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 22,523,758.26 | 20,419,421.63 |
| Employeebenefits | 11,317,402.28 | 11,534,165.94 |
| Depreciationandamortization | 2,749,281.31 | 3,284,892.82 |
| Other | 2,174,805.19 | 600,591.03 |
| Total | 38,765,247.04 | 35,839,071.42 |
43.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 1,546,928.49 | 3,343,884.90 |
| Less:Interestincome | 7,969,452.65 | 4,264,102.18 |
| Netforeignexchangegainsorlosses | -2,334,179.75 | -4,784,425.33 |
| Other | 142,352.25 | 727,989.66 |
| Total | -8,614,351.66 | -4,976,652.95 |
44.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Governmentgrantsdirectlyrecordedintothecurrentprofitorloss | 248,837.64 | 1,594,191.79 |
| Governmentgrantsrelatedtodeferredincome | 1,704,864.73 | 1,704,864.73 |
Listofotherincome:
Unit:RMB
Category
| Category | ReportingPeriod | Sameperiodoflastyear |
| Membershipduesreturn | 12,085.00 | 2,856.53 |
| Specialfundsforhigh-qualityindustrialdevelopment | 25,000.00 | |
| Specialfundsforpromotinghigh-qualitydevelopmentthroughtechnologicalinnovation | 513,000.00 | |
| Specialfundsfortalents | 60,000.00 | |
| Municipalscienceandtechnologyinnovationandincentivefunds,ScienceandTechnologyProgramFunding | 81,000.00 | 543,026.62 |
| Subsidiesforhigh-qualityinvention | 30,000.00 | |
| Intellectualpropertyfundingandrewards | 1,500.00 | |
| Rewardsfordistrictengineeringtechnologyresearchcentrein2023 | 50,000.00 | |
| Changzhoutalentplan-specialprogramforforeigntalents | 100,000.00 | 0.00 |
| Demolitioncompensation(replacingZouVillagewithHehaiRoad) | 133,666.74 | 133,666.74 |
| Demolitioncompensation-mainworkshopsinthebaseinHehaiRoad | 199,320.07 | 199,320.07 |
| Thenationalmajorspecialproject-theflexibleprocessingproductionlinefordieselenginecylinderblocks | 759,633.00 | 759,633.00 |
| NationalIII/IVAppropriationfortheresearchanddevelopmentandindustrializationofstandardhigh-horsepowerhigh-efficiencyagriculturaldieselengine | 612,244.92 | 612,244.92 |
| ValueAddedTax(VAT)DeductionsandBenefits | 294,256.13 | |
| Individualtaxhandlingfees | 55,752.64 | 74,552.51 |
| Total | 1,953,702.37 | 3,299,056.52 |
45.GainonChangesinFairValue
Unit:RMB
Sources
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Held-for-tradingfinancialassets | -34,487,453.74 | 19,360,455.86 |
| Total | -34,487,453.74 | 19,360,455.86 |
46.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | ||
| Investmentincomefromdisposaloflong-termequityinvestment | ||
| Investmentincomefromholdingoftradingfinancialassets | 654,815.85 | 343,730.00 |
| Investmentincomefromdisposaloftradingfinancialassets | 2,430.18 | |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 10,998,000.00 | |
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
| Interestincomefromholdingofinvestmentindebtobligations | 499,852.62 | 705,680.77 |
| Interestincomefromholdingofinvestmentinotherdebtobligations | ||
| Investmentincomefromdisposalofinvestmentinotherdebtobligations | ||
| Incomefromdebtreorganization | ||
| Incomefromrefinancingoperations | 74,524.00 | 14,396.97 |
| Investmentincomefromfinancialproducts | 3,371,852.31 | 4,471,297.06 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -1,300,004.16 | -2,310,613.28 |
| Total | 14,299,040.62 | 3,226,921.70 |
47.CreditImpairmentLoss
Unit:RMB
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofaccountsreceivable | -17,840,474.15 | -12,796,606.08 |
| Baddebtlossofotherreceivables | 2,191.49 | -1,750,745.09 |
| Total | -17,838,282.66 | -14,547,351.17 |
48.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Lossoninventoryvaluationandcontractperformancecost | -359,995.80 | -565,273.49 |
| Total | -359,995.80 | -565,273.49 |
49.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Disposalincomeoffixedassetsandintangibleassets | 408,245.54 | 105,395,693.25 |
50.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Accountsnotrequiredtobepaid | 410,870.50 | 410,870.50 | |
| Incomefrompenalty | 13,396.22 | 13,396.22 | |
| Other | 646,668.47 | 495,538.97 | 646,668.47 |
| Total | 1,070,935.19 | 495,538.97 | 1,070,935.19 |
51.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Compensationforquality
| Compensationforquality | 264,014.59 | 144,428.82 | 264,014.59 |
| Compensation | 0.00 | 731,752.92 | 0.00 |
| Other | 3,720.00 | 421,166.39 | 3,720.00 |
| Total | 267,734.59 | 1,297,348.13 | 267,734.59 |
52.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 12,974,889.92 | 2,460,114.33 |
| Deferredincometaxexpense | -8,660,218.60 | 4,729,214.00 |
| Total | 4,314,671.32 | 7,189,328.33 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | 58,289,800.93 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 8,769,361.12 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 551,584.53 |
| Influenceofincometaxbeforeadjustment | |
| Influenceofnon-taxableincome | -1,832,034.96 |
| Influenceofnon-deductablecosts,expensesandlosses | |
| InfluenceofdeductablelossesofunrecognizeddeferredincometaxatthebeginningoftheReportingPeriod | |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | -3,174,239.37 |
| Incometaxexpense | 4,314,671.32 |
53.OtherComprehensiveIncomeSeeNote34fordetails.
54.CashFlowStatement
(1)CashRelatedtoOperatingActivitiesCashGeneratedfromOtherOperatingActivities
Unit:RMB
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 55,752.64 | 1,594,191.79 |
| Otherintercoursesincash | 4,561,973.63 | 5,293,371.43 |
| Interestincome | 7,969,452.65 | 4,264,102.18 |
| Other | 201,272.35 | 372,352.32 |
| Total | 12,788,451.27 | 11,524,017.72 |
CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingandadministrativeexpensepaidincash | 80,012,536.52 | 79,187,465.71 |
| Handlingcharges | 1,546,928.49 | 1,125,365.36 |
| Other | 789,612.45 | 658,923.36 |
| Othertransactions | 13,789,734.98 | 149,835.21 |
| Total | 96,138,812.44 | 81,121,589.64 |
(2)CashRelatedtoFinancingActivitiesChangesinliabilitiesarisingfromfinancingactivities
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Cashchanges | Non-cashchanges | Cashchanges | Non-cashchanges | |||
| Otherpayables-dividendspayable | 3,891,433.83 | 33,167,547.83 | 33,167,547.83 | 3,891,433.83 | ||
| Total | 3,891,433.83 | 33,167,547.83 | 33,167,547.83 | 3,891,433.83 | ||
55.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfrom |
operatingactivities
| operatingactivities | ||
| Netprofit | 53,975,129.61 | 136,099,723.92 |
| Add:Provisionforimpairmentofassets | -359,995.80 | 15,112,624.66 |
| Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 38,972,508.82 | 44,923,816.05 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 3,046,858.77 | 3,208,767.08 |
| Amortizationoflong-termdeferredexpenses | 500,129.64 | 168,946.50 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -408,245.54 | -105,395,693.25 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | ||
| Lossesonthechangesinfairvalue(gainsby“-”) | 34,487,453.74 | -19,360,455.86 |
| Financialexpenses(gainsby“-”) | -8,614,351.66 | -4,976,652.95 |
| Investmentlosses(gainsby“-”) | -14,299,040.62 | -3,226,921.70 |
| Decreaseindeferredincometaxassets(increaseby“-”) | -2,655,243.07 | 21,603,212.61 |
| Increaseindeferredincometaxliabilities(decreaseby“-”) | -16,785,433.67 | -17,481,773.65 |
| Decreaseininventory(increaseby“-”) | 169,505,166.76 | 14,472,740.38 |
| Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -431,702,702.30 | -269,061,905.84 |
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 12,523,252.32 | 79,116,755.30 |
| Other | ||
| Netcashflowsgeneratedfromoperatingactivities | -161,814,513.00 | -104,796,816.75 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | ||
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | ||
| Endingbalanceofcash | 643,940,187.59 | 651,307,581.82 |
| Less:Beginningbalanceofcash | 971,629,523.46 | 810,350,966.05 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -327,689,335.87 | -159,043,384.23 |
(2)CashandCashEquivalents
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| I.Cash | 643,940,187.59 | 971,629,523.46 |
| Including:Cashonhand | 146,931.23 | 157,238.05 |
| Bankdepositondemand | 638,741,422.13 | 963,604,998.68 |
| Othermonetaryassetsondemand | 5,051,834.23 | 7,867,286.73 |
| Accountsdepositedinthecentralbankavailableforpayment | ||
| Depositsinotherbanks | ||
| Accountsofinterbank | ||
| II.Cashequivalents | ||
| Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
| III.Endingbalanceofcashandcashequivalents | 643,940,187.59 | 971,629,523.46 |
| Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
(3)MonetaryAssetsNotClassifiedasCashandCashEquivalents
Unit:RMB
| Item | Amountduringthecurrentperiod | Previousperiod | Reasonfornotclassifyingtheitemascashandcashequivalents |
| Bankdeposits-fixedtimedepositsover3months | 39,000,000.00 | 24,000,000.00 | Timedepositsinbanksnotheldtomeetshort-termcashrequirementsforexternalpayments |
| Othermonetaryassts-cashdeposit | 108,979,912.31 | 173,206,532.10 | Banker'sacceptancedeposit,environmentalperformancebonds,etc. |
| Total | 147,979,912.31 | 197,206,532.10 |
56.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
Item
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | |||
| Ofwhich:USD | 13,710,056.35 | 7.1268 | 97,708,829.60 |
| HKD | 9,065,169.44 | 0.9127 | 8,273,780.15 |
| Accountsreceivable | |||
| Ofwhich:USD | 9,065,169.44 | 7.1268 | 64,605,649.56 |
| GBP | -67,212.27 | 9.0430 | -607,800.56 |
| Contractliabilities | |||
| Ofwhich:USD | 472,535.68 | 7.1268 | 3,367,667.28 |
| EUR | 117,145.84 | 7.6617 | 897,536.28 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
57.Lease
(1)TheCompanyWasLessee:
√Applicable□NotapplicableVariableleasepaymentsthatarenotcoveredinthemeasurementoftheleaseliabilities
□Applicable√NotapplicableSimplifiedshort-termleaseorleaseexpenseforlow-valueassets
√Applicable□NotapplicableTheleasessimplisticallytreatedbytheCompanyweremainlyleasedhouses,etc.,whichwerenotrecognizedasright-of-useassetsandleaseliabilitiesbytheCompanyasrequiredbytheprovisionsoftheconvergenceofthenewstandardforleasesbecauseoftheshorterleasetermsandlowerindividualleaseexpenses.Circumstancesinvolvingsaleandleasebacktransactions：Notapplicable
(2)TheCompanyWasLessor:
OperatingleaseswiththeCompanyaslessor
√Applicable□Notapplicable
Unit:RMB
| Item | Rentalincome | Ofwhich:incomerelatedtovariableleasepaymentsnotincludedinleasereceipts |
Leaseincome
| Leaseincome | 1,156,352.63 |
| Total | 1,156,352.63 |
FinanceleaseswiththeCompanyaslessor
□Applicable√NotapplicableUndiscountedleasereceiptsforeachofthenextfiveyears
□Applicable√NotapplicableReconciliationofundiscountedleasereceiptstonetinvestmentinleases:Notapplicable
(3)RecognitionofGainorLossonSalesunderFinanceLeaseswiththeCompanyasaManufacturerorDistributor
□Applicable√Notapplicable
VIII.ResearchandDevelopmentExpenditure
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Directinput | 22,523,758.26 | 20,419,421.63 |
| Employeeremuneration | 11,317,402.28 | 11,534,165.94 |
| Depreciationandamortization | 2,749,281.31 | 3,284,892.82 |
| Others | 2,174,805.19 | 600,591.03 |
| Total | 38,765,247.04 | 35,839,071.42 |
| Ofwhich:Expensedresearchanddevelopmentexpenditure | 38,765,247.04 | 35,839,071.42 |
| Capitalizedresearchanddevelopmentexpenditure | 0.00 | 0.00 |
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
Unit:RMB
| Name | Registeredcapital | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 85,000,000.00 | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd.
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 55,063,000.00 | Changzhou | Changzhou | Industry | 99.00% | 1.00% | Set-up |
| ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 10,000,000.00 | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 37,250,000.00 | Changzhou | Changzhou | Industry | 100.00% | Combinationnotunderthesamecontrol | |
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 2,000,000.00 | Zhenjiang | Zhenjiang | Industry | 49.00% | Combinationnotunderthesamecontrol |
Explanation:
1.TheCompanyholding49%ofthesharesinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.isthelargestshareholder,andtheothershareholdersarerelativelyscattered.Amongthe7membersoftheboardofdirectorsofZhenjiangSiyang,4aredispatchedbytheCompany.ThechairmanofZhenjiangSiyangisdispatchedbytheCompany,andtheCompanyistheactualcontrollerofZhenjiangSiyang,whichconstitutestheconditionsformerger.
2.InJune2024,theCompanyacquired25%ofthesharesinHorizonAgriculturalEquipmentoriginallyheldbyHorizonInvestment.CurrentlytheCompanydirectlyholds100%ofthesharesinHorizonAgriculturalEquipment.
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
ChangchaiWanzhouDieselEngineCo.,Ltd.
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 194,926.30 | 20,005,287.41 | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 51.00% | 3,682,548.16 | 54,993,395.40 |
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. | 41,807,112.03 | 21,988,559.62 | 63,795,671.65 | 13,179,957.90 | 13,179,957.90 | 41,179,375.84 | 22,351,977.78 | 63,531,353.62 | 13,584,154.77 | 13,584,154.77 | ||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 93,041,815.38 | 25,243,492.13 | 118,285,307.51 | 11,380,848.99 | 11,380,848.99 | 94,747,199.90 | 26,468,620.63 | 121,215,820.53 | 20,295,436.96 | 310,879.17 | 20,606,316.13 | |
Unit:RMB
| Name | ReportingPeriod | Sameperiodoflastyear |
Operating
revenue
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 20,436,838.02 | 487,315.76 | 487,315.76 | 494,183.89 | 26,190,043.15 | 212,968.83 | 212,968.83 | -8,525,646.36 |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 40,212,271.49 | 6,294,954.12 | 6,294,954.12 | 291,189.20 | 38,098,312.48 | 6,969,592.70 | 6,969,592.70 | 7,732,566.01 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018and3December2020,newpartnerswererespectivelyadded.PartnershipSharestransferwasmaderespectivelyon29December2022and30October2023.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhu,TongYinxin,AnhuiHaiyunzhouEquityInvestmentPartnershipEnterprise(Limited),ShenzhenJiaxinOneVentureCapitalPartnership(LimitedPartnership),ZhongWendeandQingdaoYinjiahuiIndustrialInvestmentPartnership(LimitedPartnership).InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.
X.GovernmentGrants
1.GovernmentGrantsRecognizedattheEndoftheReportingPeriodattheAmountReceivable
□Applicable√NotapplicableReasonsforfailingtoreceivegovernmentgrantsintheestimatedamountattheestimatedpointintime
□Applicable√Notapplicable
2.LiabilityItemsInvolvingGovernmentGrants
√Applicable?Notapplicable
Unit:RMB
Accounting
items
| Accountingitems | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Deferredincome | 32,795,896.48 | 1,704,864.73 | 31,091,031.75 | Relatedtoassets |
3.GovernmentGrantsRecognizedasCurrentProfitorLoss
√Applicable?Notapplicable
Unit:RMB
| Accountingitems | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Otherincome | 1,897,949.73 | 2,930,247.88 |
XI.TheRiskRelatedtoFinancialInstruments
1.VariousTypesofRisksArisingfromFinancialInstrumentsThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRiskCreditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.(II)LiquidityRiskLiquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcash
topaythedueliabilities.TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.(III)MarketRiskMarketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,includingforeignexchangeraterisk,interestraterisk.
1.InterestRateRiskInterestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRiskForeignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.
2.FinancialAssets
(1)ClassificationofTransferMethods
√Applicable?Notapplicable
Unit:RMB
Transfermethod
| Transfermethod | Natureoftransferredfinancialassets | Amountoftransferredfinancialassets | Recognitionterminationornot | Basisforrecognitiontermination |
| Endorsement/discount | Notesreceivable | 46,144,123.81 | Notderecognized | TheCompanyretainssubstantiallyalloftherisksandrewards,includingtheriskofdefaultassociatedwithits |
| Endorsement/discount | Accountsreceivablefinancing | 12,282,312.54 | Derecognized | TheCompanytransfersalmostalltherisksandrewards |
| Total | 58,426,436.35 |
(2)FinancialAssetsDerecognizedduetoTransfer
√Applicable?Notapplicable
Unit:RMB
| Item | Transfermethodoffinancialassets | Amountofderecognizedfinancialassets | Gainsorlossesrelatedtoderecognization |
| Accountsreceivablefinancing | Endorsement | 8,259,386.86 | |
| Accountsreceivablefinancing | Discount | 78,281,000.00 | -1,300,004.16 |
| Total | 86,540,386.86 | -1,300,004.16 |
(3)ContinuedInvolvementintheTransferofAssetsFinancialAssets
√Applicable?Notapplicable
Unit:RMB
Item
| Item | Transfermethodofassets | Amountofassetsresultingfromcontinuedinvolvement | Amountofliabilitiesresultingfromcontinuedinvolvement |
| Notesreceivable | Endorsement | 46,144,123.81 | 46,144,123.81 |
| Total | 46,144,123.81 | 46,144,123.81 |
XII.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 50,661,877.00 | 352,238,906.53 | 402,900,783.53 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 50,661,877.00 | 352,238,906.53 | 402,900,783.53 | |
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 50,661,877.00 | 50,661,877.00 | ||
| (3)Derivativefinancialassets | ||||
| Wealthmanagementinvestments | 352,238,906.53 | 352,238,906.53 | ||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrent | ||||
profitorloss
| profitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherinvestmentsindebtobligations | ||||
| (III)Otherequityinstrumentinvestment | 498,987,000.00 | 418,457,025.67 | 917,444,025.67 | |
| (IV)Investmentproperty | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuserightheldandplannedtobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Accountsreceivablefinancing | 12,282,312.54 | 12,282,312.54 | ||
| Othernon-currentfinancialassets | 412,914,576.80 | 412,914,576.80 | ||
| Totalassetsconsistentlymeasuredbyfairvalue | 549,648,877.00 | 352,238,906.53 | 843,653,915.01 | 1,745,541,698.54 |
| (VI)Tradingfinancialliabilities | ||||
| Ofwhich:Issuedtradingbonds | ||||
| Derivative |
financialliabilities
| financialliabilities |
| Other |
| (VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss |
| Totalliabilitiesconsistentlymeasuredbyfairvalue |
| II.Inconsistentfairvaluemeasurement |
| (1)Assetsheldforsale |
| Totalassetsinconsistentlymeasuredbyfairvalue |
| Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Forthelistedcompanystocksheldbythecompanyintheheld-for-tradingfinancialassetsmeasuredatfairvalue,theclosingmarketpriceonthebalancesheetdatewasthebasisforthemeasurementoffairvalue.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Wealthmanagementandinvestment:Theunderlyingassetsofinvestmentinwealthmanagementproductsincludebondassets,depositassets,fundassets,etc.Theportfolioofinvestmentassetsshouldbedynamicallymanaged.Thefairvalueofwealthmanagementproductsshouldbeadjustedaccordingtotheyieldofsimilarproductsprovidedbythecounterparty.
4.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)Accountsreceivablefinancing:Accountsreceivablefinancingisabankacceptancewithhighcreditrating,shortmaturityandlowrisk.Theparamountisclosetothefairvalueandisusedasthefairvalue.
(2)Amongtheothernon-currentfinancialassets:fortheinvestmentsinequityinstrumentofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,JiangsuHorizonNewEnergyTechnologyCo.,Ltd.entrustedanappraisalagencytoevaluatethevalueofallitsshareholders’equityduetotheneedforcapitalincreaseandshareexpansionin2023,andconfirmedthepremiumrateofcapitalincreasebasedontheappreciationrateoftheequityvalue.Thecompany’snewinvestorssignedthecapitalincreaseagreementson27September2023.Therefore,thefairvalueoftheequityinvestmenthadbeenadjustedandconfirmedaccordinglybasedonthepremiumrateofthenewroundoffinancing.Andanappraisalagencywashiredtoconductanappraisaltoconfirm
(3)Amongotherequityinvestmentinstruments,thetotalinvestmentinChengduChangwanDieselEngineDistributionCo.,Ltd.,ChongqingWanzhouChangwanDieselEnginePartsCo.,Ltd.,ChangzhouEconomicandTechnologicalDevelopmentCompany,ChangzhouTractorCompany,ChangzhouEconomicCommissionIndustrialCapitalMutualAidAssociation,BeijingEngineeringMachineryAgriculturalMachineryCompanywasRMB1.21million,andthefairvaluewasRMB0.00duetothedifficultyinrecoveringtheinvestment.SinceitsestablishmentinOctober2017,ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)hadincreasedtheequityofpartnersattheendoftheyearduetothechangeinfairvalueoftheequityheldbyit.Inaddition,thecompany'sbusinessenvironment,operatingconditions,andfinancialstatushadnotundergonemajorchanges.Therefore,thecompanydetermineditsfairvalueonthebasisofthenetbookassetsofthepartnershipattheendoftheperiod.
5.SensitivenessAnalysisonUnobservableParametersandAdjustmentInformationbetweenBeginningandEndingCarryingValueofConsistentFairValueMeasurementItemsatLevel3Notapplicable
6.ExplaintheReasonforConversionandtheGoverningPolicywhentheConversionHappensifConversionHappensamongConsistentFairValueMeasurementItemsatDifferentLevelsNotapplicable
7.ChangesintheValuationTechniqueintheCurrentPeriodandtheReasonforSuchChangesNotapplicable
8.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValueThefinancialassetsandliabilitiesmeasuredatamortizationcostmainlyincludenotesreceivable,accountsreceivable,otherreceivables,short-termborrowings,accountspayable,otherpayables,etc.Thedifferencebetweenthecarryingvalueandfairvalueforfinancialassetsandliabilitiesnotmeasuredatfairvalueissmall.
9.OtherDuringtheReportingPeriod,therewasnoconversionbetweenLevel1andLevel2,norwasthereanytransfertoorfromLevel3forthefairvaluemeasurementoftheCompany'sfinancialassetsandfinancialliabilities.XIII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
Name
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
| ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc. | RMB1.2billion | 32.26% | 32.26% |
Notes:InformationontheCompanyastheparentTheparentcompanyoftheCompanyisChangzhouInvestmentGroupCo.,Ltd.AccordingtotheguidingprincipleoftheNoticeofProvincialGovernmentonIssuingtheImplementationPlanforTransferringPartofState-ownedCapitaltoBoostSocialSecurityFundinJiangsuProvince(SZF[2020]No.27),theNoticeonTransferringPartofState-ownedCapitaltoCitiesandCountiestoBoostSocialSecurityFund(SCGM[2020]No.
139)fromtheDepartmentofFinanceofJiangsuProvinceandotherfivedepartmentsandtheNoticeonTransferringPartofState-ownedCapitalatUrban(District)LeveltoBoostSocialSecurityFund(CCGM[2020]No.4)fromChangzhouFinanceBureauandotherfourdepartments,the10%state-ownedequityoftheInvestmentGroupheldbyChangzhouMunicipalPeople'sGovernmentistransferredtotheDepartmentofFinanceofJiangsuProvincefreeofcharge.Afterthesharetransfer,ChangzhouPeople’sGovernmentholds90%state-ownedequityoftheInvestmentGroupandtheDepartmentofFinanceofJiangsuProvinceholds10%state-ownedequityoftheInvestmentGroup.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),ChangzhouInvestmentGroupCo.,Ltd.isanenterprisewhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission
toperformdutiesofinvestors.Thus,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteIXfordetails.
3.SituationofJointVenturesandAssociatedEnterprisesoftheCompanyNone
4.InformationonOtherRelatedParties
Name
| Name | RelationshipwiththeCompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
XIV.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof30June2024,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDateNone
(2)InDespiteofnoSignificantContingencytoDisclose,theCompanyShallAlsoMakeRelevantStatementsTherewasnosignificantcontingencyintheCompany.XV.EventsafterBalanceSheetDate
1.SalesReturnNone
2.NotestoOtherEventsafterBalanceSheetDateTherewasnoothereventafterbalancesheetdate.
XVI.OtherSignificantEvents
1.TheAccountingErrorsCorrectioninPreviousPeriod
(1)RetrospectiveRestatementNone
(2)ProspectiveApplicationNone
2.DebtRestructuringNotapplicable
3.AssetsReplacementNotapplicable
4.PensionPlansNotapplicable
5.DiscontinuedOperationsNotapplicable
6.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegmentDuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommonmanagement,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
7.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-makingNone
XVII.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
Aging
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 1,170,450,727.23 | 289,665,029.12 |
| Onetotwoyears | 2,314,925.52 | 1,642,898.19 |
| Twotothreeyears | 4,626,330.47 | 4,274,309.13 |
| Morethanthreeyears | 103,514,432.55 | 103,238,762.39 |
| Threetofouryears | 4,545,159.53 | 4,376,325.51 |
| Fourtofiveyears | 1,476,565.43 | 1,398,123.34 |
| Over5years | 97,492,707.59 | 97,464,313.54 |
| Total | 1,280,906,415.77 | 398,820,998.83 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 21,058,702.18 | 1.64% | 21,058,702.18 | 100.00% | 0.00 | 21,058,702.18 | 5.28% | 21,058,702.18 | 100.00% | 0.00 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 1,259,847,713.59 | 98.36% | 103,523,078.88 | 8.22% | 1,156,324,634.71 | 377,762,296.65 | 94.72% | 85,765,458.71 | 22.70% | 291,996,837.94 |
| Ofwhich: | ||||||||||
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 1,259,847,713.59 | 98.36% | 103,523,078.88 | 8.22% | 1,156,324,634.71 | 377,762,296.65 | 94.72% | 85,765,458.71 | 22.70% | 291,996,837.94 |
| Total | 1,280,906,415.77 | 100.00% | 124,581,781.06 | 9.73% | 1,156,324,634.71 | 398,820,998.83 | 100.00% | 106,824,160.89 | 26.78% | 291,996,837.94 |
Individualprovisionforbaddebts:21,058,702.18yuan,including19,019,243.10yuanforlargeimpairmentitems,asfollows:
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer2 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer3 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer4 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 100.00% | Difficulttorecover |
| Customer5 | 2,322,278.50 | 2,322,278.50 | 2,322,278.50 | 2,322,278.50 | 100.00% | Difficulttorecover |
| Customer6 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer7 | 1,726,935.65 | 1,726,935.65 | 1,726,935.65 | 1,726,935.65 | 100.00% | Difficulttorecover |
| Total | 19,019,243.10 | 19,019,243.10 | 19,019,243.10 | 19,019,243.10 | -- | -- |
Provisionforbaddebtsbycombination:provisionforbaddebtsbycombinationbasedoncreditriskcharacteristicsofRMB103,523,078.88
Unit:RMB
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 1,170,588,490.37 | 23,411,769.80 | 2.00% |
| 1to2years | 2,314,925.52 | 115,746.28 | 5.00% |
2to3years
| 2to3years | 4,064,067.81 | 609,610.17 | 15.00% |
| 3to4years | 4,511,159.53 | 1,353,347.86 | 30.00% |
| 4to5years | 841,163.98 | 504,698.39 | 60.00% |
| Over5years | 77,527,906.38 | 77,527,906.38 | 100.00% |
| Total | 1,259,847,713.59 | 103,523,078.88 |
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable:
□Applicable√Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheCurrentPeriod
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionaccruedbyitem | 21,058,702.18 | 21,058,702.18 | ||||
| Withdrawalofbaddebtprovisionbygroup | 85,765,458.71 | 17,757,620.17 | 103,523,078.88 | |||
| Total | 106,824,160.89 | 17,757,620.17 | 124,581,781.06 | |||
Ofwhichsignificantamountofrecoveredortransferred-backbaddebtprovisionforthecurrentperiod:None
(4)TherewerenoaccountsreceivablewithactualverificationduringtheReportingPeriod.
(5)Top5oftheEndingBalanceofAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
| Customer1 | 646,622,440.97 | 0.00 | 646,622,440.97 | 50.48% | 12,932,448.83 |
| Customer2 | 117,517,494.00 | 0.00 | 117,517,494.00 | 9.17% | 2,350,349.88 |
| Customer3 | 70,421,083.72 | 0.00 | 70,421,083.72 | 5.50% | 1,408,421.67 |
| Customer4 | 57,254,239.63 | 0.00 | 57,254,239.63 | 4.47% | 1,145,084.79 |
| Customer5 | 48,331,650.00 | 0.00 | 48,331,650.00 | 3.77% | 966,633.00 |
| Total | 940,146,908.32 | 0.00 | 940,146,908.32 | 73.39% | 18,802,938.17 |
2.OtherReceivables
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 253,310,648.05 | 399,142,024.92 |
| Total | 253,310,648.05 | 399,142,024.92 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| CashdepositandMargin | 1,300.00 | 1,300.00 |
| Intercoursefundsamongunits | 288,834,794.06 | 433,589,441.68 |
| Pettycashandborrowingsbyemployees | 864,426.75 | 884,233.75 |
| Other | 13,616,314.29 | 13,638,079.94 |
| Total | 303,316,835.10 | 448,113,055.37 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 164,027,411.09 | 308,824,779.36 |
| Onetotwoyears | 113,974,734.71 | 113,974,034.71 |
| Twotothreeyears | 13,250.00 | 12,802.00 |
| Morethanthreeyears | 25,301,439.30 | 25,301,439.30 |
| Threetofouryears | 30,000.00 | 30,000.00 |
| Fourtofiveyears | ||
| Over5years | 25,271,439.30 | 25,271,439.30 |
| Total | 303,316,835.10 | 448,113,055.37 |
3)DisclosurebyWithdrawalMethodsforBadDebtsWithdrawalofbaddebtprovisionbyadoptingthegeneralmodeofexpectedcreditloss:
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
Expectedcreditlossinthenext12months
| Expectedcreditlossinthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2024 | 46,873.20 | 16,709.10 | 48,907,448.15 | 48,971,030.45 |
| Balanceof1January2024intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | 1,035,156.60 | 1,035,156.60 | ||
| ReversaloftheCurrentPeriod | ||||
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof30June2024 | 1,082,029.80 | 16,709.10 | 48,907,448.15 | 50,006,187.05 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
Baddebtprovisionwithdrawnseparately
| Baddebtprovisionwithdrawnseparately | 21,844,634.06 | 1,015,568.60 | 22,860,202.66 | |
| Baddebtprovisionwithdrawnbygroup | 27,126,396.39 | 19,588.00 | 27,145,984.39 | |
| Total | 48,971,030.45 | 1,035,156.6 | 50,006,187.05 |
5)ThereWereNoOtherReceivableswithActualVerificationduringtheReportingPeriod
6)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| JiangsuChangchaiMachineryCo.,Ltd. | Intercoursefunds | 237,954,416.88 | Within1year:142,954,416.88,1-2years:95,000,000 | 78.45% | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 17,557,631.35 | Within1year:7,699,372.64,1-2years:9,858,258.71 | 5.79% | 17,557,631.35 |
| ChangzhouChangniuMachineryCo.,Ltd. | Intercoursefunds | 15,000,000.00 | 1-2years | 4.95% | |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 0.97% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 0.94% | 2,853,188.02 |
| Total | 276,305,236.25 | 91.10% | 23,350,819.37 |
3.Long-termEquityInvestment
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 583,443,530.03 | 7,000,000.00 | 576,443,530.03 | 583,443,530.03 | 7,000,000.00 | 576,443,530.03 |
| Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
| Total | 583,487,712.53 | 7,044,182.50 | 576,443,530.03 | 583,487,712.53 | 7,044,182.50 | 576,443,530.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | Endingbalance(Carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofimpairmentprovision | Others | |||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | ||||||
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | ||||||
| ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | 40,000,000.00 | ||||||
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd.
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 0.00 | 7,000,000.00 | 0.00 | 7,000,000.00 | |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | 300,000,000.00 | |||
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | |||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 40,690,800.00 | 40,690,800.00 | |||
| Total | 576,443,530.03 | 7,000,000.00 | 576,443,530.03 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | Endingbalance(Carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymetho | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Others | |||||
d
| d | |||||||
| I.Jointventures | |||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | |||
| II.Associatedenterprises | |||||||
| BeijingTsinghuaXingyeIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |||
| Subtotal | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |||
| Total | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,366,413,377.99 | 1,162,530,395.97 | 1,229,806,219.61 | 1,080,327,550.17 |
| Otheroperations | 53,682,141.33 | 49,682,288.16 | 15,360,013.94 | 12,076,793.29 |
| Total | 1,420,095,519.32 | 1,212,212,684.13 | 1,245,166,233.55 | 1,092,404,343.46 |
Breakdowninformationofoperatingincomeandoperatingcost:
Unit:RMB
Categoryof
contracts
| Categoryofcontracts | Segment1 | Total | ||
| OperatingRevenue | Operatingcost | OperatingRevenue | Operatingcost | |
| BusinessType | ||||
| Ofwhich: | ||||
| Single-cylinderdieselengines | 432,998,950.52 | 390,766,306.02 | 432,998,950.52 | 390,766,306.02 |
| Multi-cylinderdieselengines | 850,224,657.96 | 697,174,644.25 | 850,224,657.96 | 697,174,644.25 |
| Otherproducts | 47,669,282.15 | 41,574,102.80 | 47,669,282.15 | 41,574,102.80 |
| Fittings | 35,520,487.36 | 33,015,342.90 | 35,520,487.36 | 33,015,342.90 |
| Classificationbyoperatingregion | ||||
| Ofwhich: | ||||
| Salesindomesticmarket | 1,253,777,712.59 | 1,058,680,312.47 | 1,253,777,712.59 | 1,058,680,312.47 |
| Exportsales | 112,635,665.40 | 103,850,083.50 | 112,635,665.40 | 103,850,083.50 |
| Total | 1,366,413,377.99 | 1,162,530,395.97 | 1,366,413,377.99 | 1,162,530,395.97 |
Informationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0attheperiod-end.
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 10,998,000.00 | |
| Interestincomefromholdingofdebtobligationinvestments | 499,852.62 | 705,680.77 |
| Investmentincomeobtainedfromfinancialproducts | 3,180,749.07 | 4,322,777.77 |
| Incomefromrefinancingoperations | 74,524.00 | 14,396.97 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -1,300,004.16 | -2,310,613.28 |
| Total | 13,453,121.53 | 2,732,242.23 |
XVIII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Amount | Note |
| Gainsandlossesfromthedisposalofnoncurrentassets(includingtheoffsettingportionofimpairmentprovisionsalreadymadeforassets) | 408,245.54 | |
| Governmentgrantsrecognisedinprofitorloss(exclusiveofthosethatarecloselyrelatedtotheCompany'snormalbusinessoperationsandgiveninaccordancewithdefinedcriteriaandincompliancewithgovernmentpolicies,andhaveacontinuingimpactontheCompany'sprofitorloss) | 193,085.00 | GovernmentgrantschargedtocurrentprofitandlossamountedtoRMB1,953,702.37,theamountdeductingdeferredincomeandchargedtocurrentprofitandlosswasRMB1,704,864.73. |
| Gainorlossonfair-valuechangesinfinancialassetsandliabilitiesheldbyanon-financialenterprise,aswellasondisposaloffinancialassetsandliabilities(exclusiveoftheeffectiveportionofhedgesthatisrelatedtotheCompany'snormalbusinessoperations) | -18,684,594.97 | ThecompanyreceivedstockdividendsfromJiangsuBankCo.,Ltd.heldbythecompany,thewealthmanagementincomegeneratedfromcashmanagementandthedecreaseinthefairvalueofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,andKailongHighTechnologyCo.,Ltd. |
| Othernon-operatingincomeandexpensesotherthantheabove | 803,200.60 | |
| Less:Incometaxeffects | -7,709,542.20 | |
| Non-controllinginterestseffects(netoftax) | 178,088.19 | |
| Total | -9,748,609.82 | -- |
Othersthatmeetsthedefinitionofnon-recurringgain/loss:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ExplainthereasonsiftheCompanyclassifiesanyextraordinarygain/lossitemmentionedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasarecurrentgain/lossitem
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
ProfitasofReportingPeriod
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 1.47% | 0.0710 | 0.0710 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 1.76% | 0.0848 | 0.0848 |
3.DifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards
(1)DifferencesbetweenDisclosedNetProfitsandNetAssetsinFinancialReportinaccordancewithInternationalAccountingStandardsandChineseAccountingStandards
□Applicable√Notapplicable
(2)DifferencesbetweenDisclosedNetProfitsandNetAssetsinFinancialReportinaccordancewithOverseasAccountingStandardsandChineseAccountingStandards
□Applicable√Notapplicable
(3)ExplainReasonsfortheDifferencesbetweenAccountingDataUnderDomesticandOverseasAccountingStandards;forAnyAdjustmentMadetotheDifferenceExistingintheDataAuditedbytheForeignAuditingAgent,SuchForeignAuditingAgent'sNameShallBeClearlyStated
□Applicable√Notapplicable
TheBoardofDirectorsChangchaiCompany,Limited
23August2024