CHANGCHAICOMPANY,LIMITED
ANNUALREPORT2021
April2022
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 3
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 11
PartIVCorporateGovernance ...... 46
PartVEnvironmentalandSocialResponsibility ...... 67
PartVISignificantEvents ...... 68
PartVIIShareChangesandShareholderInformation ...... 79
PartVIIIPreferredShares ...... 89
PartIXBonds ...... 90
PartXFinancialStatements ...... 91
PartIImportantNotes,TableofContentsandDefinitionsTheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.ShiXinkun,theCompany’slegalrepresentative,ZhangXin,theCompany’sGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks.TheCompanyhasdescribedindetailtherisksitmightfacein“XIProspects”in“PartIIIManagementDiscussionandAnalysis”herein.TheBoardhasapprovedafinaldividendplanasfollows:basedonthe705,692,507shares,acashdividendofRMB0.26(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.
DocumentsAvailableforReference
1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment.
2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm.
3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod.
4.TheAnnualReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Definitions
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. |
XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2021to31December2021 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
Stockexchangeforstocklisting | ShenzhenStockExchange | ||
CompanynameinChinese | 常柴股份有限公司 | ||
Abbr. | 苏常柴 | ||
CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
Abbr.(ifany) | CHANGCAHICO.,LTD. | ||
Legalrepresentative | ShiXinkun | ||
Registeredaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
Zipcode | 213002 | ||
Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
Zipcode | 213002 | ||
Companywebsite | http://www.changchai.com.cn | ||
Emailaddress | cctqm@public.cz.js.cn |
IIContactInformation
BoardSecretary | SecuritiesRepresentative | |
Name | HeJianjiang | |
Address | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
Tel. | (86)519-68683155 | |
Fax | (86)519-86630954 | |
Emailaddress | cchjj@changchai.com |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
NewspapersdesignatedbytheCompanyforinformationdisclosure | SecuritiesTimes,TaKungPao(HK) |
WebsitedesignatedbyCSRCforpublicationofthisReport | http://www.cninfo.com.cn |
PlacewherethisReportislodged | BoardSecretariatoftheCompanyandtheShenzhenStockExchange |
IVChangetoCompanyRegisteredInformation
Unifiedsocialcreditcode | 91320400134792410W |
ChangetoprincipalactivityoftheCompanysincegoingpublic | Nochange |
Everychangeofcontrollingshareholdersinceincorporation | On22November2018,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmenttransferreditsentireholdingsof170,845,236sharesintheCompany(astakeof30.43%)toChangzhouInvestmentGroupCo.,Ltd.fornocompensation.Thesesharesarenon-restrictedpublicshares. |
VOtherInformation
TheindependentauditfirmhiredbytheCompany:
Name | GongzhengTianyeCertifiedPublicAccountantsLLP |
Officeaddress | YingtongCommerceBuilding,Changzhou,Jiangsu,China |
Accountantswritingsignatures | WangWenkai,QinZhijun |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
√Applicable□Notapplicable
Name | Officeaddress | Representatives | Supervisionperiod |
ChinaIndustrialSecuritiesCo.,Ltd. | 10/F,ChinaIndustrialSecuritiesPlaza,36ChangliuRoad,PudongNewDistrict,Shanghai | WangLingxiao,LiLihong | 5July2021-31December2022 |
DonghaiSecuritiesCo.,Ltd. | 6/F,DonghaiSecuritiesPlaza,1928DongfangRoad,PudongNewDistrict,Shanghai | WangJiangqin,XuQin | 5July2021-31December2022 |
TheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
2021 | 2020 | 2021-over-2020change(%) | 2019 | |
Operatingrevenue(RMB) | 2,452,430,515.60 | 2,296,464,711.24 | 6.79% | 2,045,820,801.10 |
Netprofitattributabletothelistedcompany’sshareholders(RMB) | 103,006,232.54 | 52,432,443.05 | 96.46% | 24,966,526.85 |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsand | 5,329,092.87 | 25,483,147.57 | -79.09% | 14,405,485.64 |
losses(RMB) | ||||
Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -266,323,779.30 | 251,796,654.53 | -- | -20,325,189.56 |
Basicearningspershare(RMB/share) | 0.1657 | 0.0934 | 77.41% | 0.0445 |
Dilutedearningspershare(RMB/share) | 0.1657 | 0.0934 | 77.41% | 0.0445 |
Weightedaveragereturnonequity(%) | 3.86% | 2.40% | 1.46% | 1.21% |
31December2021 | 31December2020 | Changeof31December2021over31December2020(%) | 31December2019 | |
Totalassets(RMB) | 4,860,382,961.26 | 3,952,954,464.45 | 22.96% | 3,488,820,324.60 |
Equityattributabletothelistedcompany’sshareholders(RMB) | 3,077,550,018.33 | 2,273,349,347.02 | 35.38% | 2,110,892,767.58 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes√NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
□Yes√NoVIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
3.ReasonsforAccountingDataDifferencesAbove
□Applicable√Notapplicable
VIIIKeyFinancialInformationbyQuarter
Unit:RMB
Q1 | Q2 | Q3 | Q4 | |
Operatingrevenue | 774,218,489.69 | 722,951,966.11 | 484,183,670.58 | 471,076,389.22 |
Netprofitattributabletothelistedcompany’sshareholders | 24,571,254.83 | 104,617,810.77 | -23,478,352.18 | -2,704,480.88 |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 23,604,960.00 | 3,555,454.58 | -9,073,885.20 | -12,757,436.51 |
Netcashgeneratedfrom/usedinoperatingactivities | -184,484,392.45 | 91,930,272.39 | -223,631,620.05 | 49,861,960.81 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√No
IXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item | 2021 | 2020 | 2019 | Note |
Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 155,515.49 | 263,408.53 | 1,914,137.47 | |
Governmentgrantsthroughprofitorloss(exclusiveofgovernmentgrantsconsistentlygivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernmentalpoliciesorstandards) | 4,268,950.18 | 7,763,215.65 | 5,312,295.51 | |
Capitaloccupationchargesonnon-financialenterprisesthatarerecognizedinprofitorloss | 344,842.86 | 536,504.84 | ||
Gainorlossonfair-valuechangesonheld-for-tradingfinancialassetsandliabilities | 114,738,153.54 | 27,526,935.85 | -49,255.00 | Increaseinthefairvalueofwholly-ownedsubsidiaryHorizon |
&incomefromdisposalofheld-for-tradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | Investment’sinterestsinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,andGuilinStarsScienceandTechnologyCo.,Ltd.,aswellasoftheCompany’sinterestinJiangsuHorizonNewEnergyTechnologyCo.,Ltd. | |||
Impairmentofreceivablestestedseparatelyisreadytoberolledback | 147,611.25 | |||
Non-operatingincomeandexpenseotherthantheabove | 2,400,863.71 | -1,571,453.49 | 375,943.68 | |
Reversedportionsofimpairmentallowancesforentrustmentloanswhicharetestedindividuallyforimpairment | 4,000,000.00 | |||
Less:Incometaxeffects | 24,027,164.56 | 7,122,148.63 | 1,521,028.42 | |
Non-controllinginterestseffects(netoftax) | 6,789.94 | 255,505.29 | 7,556.87 | |
Total | 97,677,139.67 | 26,949,295.48 | 10,561,041.21 | -- |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysis
IIndustryOverviewfortheReportingPeriod
Weareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasagricultureandengineeringrepresentedbytractors,plantprotectionmachinery,andsmallconstructionmachinery.
(1)BasicinformationontheindustryTheinternalcombustionengineisanimportantsupportforChina'smanufacturingindustrysecurity,energysecurityandnationaldefensesecurity,andanimportantbasicindustryofnationaleconomyandnationaldefenseconstruction.Theinternalcombustionengineisthemostpower-dense,thermallyefficientandwidelyusedheatenginepowerunit.Forsometimetocome,theinternalcombustionenginewillstillbethedominantpowerforautomobiles,constructionmachinery,agriculturalmachinery,shipsandgeneratorsets,motorcycles,gardenmachinery,andmilitaryequipment.Inordertoimplementthenationaloveralldevelopmentstrategyofenergyconservation,emissionreduction,transformation,andupgrading,theinternalcombustionengineindustryandagriculturalmachineryindustrywillstrengthenindependentinnovationandresearchanddevelopment,acceleratetheconstructionofacommonbasictechnologyplatform,optimizetheconstructionoftheupstreamanddownstreamindustrychain,implementintelligentmanufacturing,andactivelycarryoutinternationalexchangeandcooperationtoacceleratetherealizationofindustrialtechnologyupgrading.
(2)DevelopmentpatternandtrendoftheindustryChina'sdieselengineandgasolineengineindustriespresentapatternofmultiplecompetitions.Asthestateadoptsincreasinglystrictenvironmentalprotectionpolicyandtheemissionstandardscontinuetoupgrade,especiallyasChinaVIemissionregulationsforgasolineenginesandChinaIVemissionregulationsfornon-roadmobilemachinerydieselenginesareorwillbeimplemented,thecoretechnologyandkeypartsofinternalcombustionengineswillberapidlydevelopedandapplied,andtheresearch,development,promotingandapplicationofenvironmentallyfriendlyandefficientdieselenginesandgasolineengineswillbecomethemainstreamtrend,whichpromotesthewideuseofthefuelinjectionsystem,high-efficiencysuperchargerandhigh-efficiencyafter-treatment.Inthenewnormal,theinternalcombustionengineindustryandagriculturalmachineryindustrywillimprovetheindustry'scapabilityofindependentinnovation,supportthewholemachinedevelopment,andorganizeandimplementgreenmanufacturingandintelligentmanufacturing,soastoimprovetheoverallstrengthoftheindustry.Themarketshareofdieselandgasolineenginesisgraduallyconcentratedinafewlarge-scaleenterpriseswithtechnicalandcapitalstrength.Thepresentdevelopmenttrendofinternalcombustionengineindustryisasfollows:(1)energysavingandemissionreduction;(2)intelligentmanufacturing;(3)lightweight.Medium-andlow-endinternalcombustionengineswithlowtechnicalcontentandlowaddedvaluewillbegraduallysqueezedoutofthemarket.Theupgradeofemissionstandardsandthemarket'sdemandforhigh-endproductswilleliminatethosesmallenterpriseswithlowlevelofresearchanddevelopmentorlesstechnologyreserves.Theindustryleaderswillshowthetrendofincreasingmarketshareandrisinggrossprofitmargincenter,andhavethepowertofixthemarketpriceofcoreproducts.
(3)Salesofinternalcombustionengineindustryin2021
Thetotalsalesofinternalcombustionenginesin2021were50,473,600units,anincreaseof7.82%comparedto2020and6.97%comparedto2019.Thetotalpowerfortheyearwas2,752,177,900kilowatts,up5.71%year-on-year.Thetotalsalesofdieselenginesfortheyearwere6,108,400units,down3.67%year-on-year.Specifically,1,048,100enginesforconstructionmachinery,1,464,800enginesforagriculturalmachinery,40,200enginesforshipbornemachinery,and317,500enginesforelectricitygenerationweresold.Thesalesofgasolineinternalcombustionengineswere44,350,600,anincreaseof9.67%year-on-year.Theoverallsituationofgasolineengineswasgood.SinceSeptember,theautomotivemarketwhichaccountsforalargerproportionhasgraduallyrebounded,leadingtoanoverallimprovementintheindustry.However,duetothecontradictionbetweensupplyanddemandofrawmaterials,recurrentepidemicsandotherfactors,themarketdemandwasstillsuppressed.Also,dieselengineshavedecreasedyear-on-yearforeightconsecutivemonths.Intermsofthesegmentsoftheinternalcombustionenginemarket,in2021,1,135,800unitsforconstructionmachineryweresold,up12.64%year-on-year;5,369,200unitsforagriculturalmachineryweresold,up27.44%year-on-year;40,200unitsforshipbornemachineryweresold,up19.69%year-on-year;1,547,300unitsforgeneratorsetsweresold,up30.24%year-on-year;2,498,800unitsforgardenmachineryweresold,up18.35%year-on-year.Enginesforgeneratorsetsandagriculturalmachineryperformedwell,bothwithanincreaseofaround30%.Construction,shipborne,andgardenmachineryalsogrewby10-20%.
IIPrincipalActivityoftheCompanyintheReportingPeriod
1.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Ourproductsaremainlyusedinagriculturalmachinery,smallconstructionmachinery,lightcommercialvehicles,generatorsetsandshipbornemachineryandotherfieldscloselyrelatedtopeople'slivelihood.IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.
2.MainProductsoftheCompanyOurmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
Mainproducts | Graphicdisplay | Productdescription | Productfeatures | Applicationfields |
Dieselengine | Ourdieselengineproductsincludesingle-cylinderdieselenginesandmulti-cylinderengines,coveringpowerrangefrom1.62kWto117.6kW,andcylinderdiametersfrom65mmto135mm,withoneormorecylinders.Besidessaleindomesticmarket,ourdieselenginesaresoldtoSoutheastAsia,SouthAmerica,theMiddleEastandAfrica. | Highpower,lowoilconsumption,lownoise,compactstructure,lowemission,goodreliability | Agriculturalmachinery,constructionmachinery,generatorsets,shipbornemachinery |
Gasolineengine | Ourgasolineenginesaremainlygeneral-purposesmallgasolineengines,coveringthepowerrangefrom1.5kWto7.0kW.Besidessaleindomesticmarket,ourgasolineenginesaresoldtoSoutheastAsia,theMiddleEast,EuropeandAmerica,Africa,Japanandothercountriesandregions. | Simplestructure,goodreliability,easymaintenance | Agriculturalmachinery,smallconstructionmachinery |
3.MajorBusinessModels
(1)R&DmodelWehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedonmarketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologycenterconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability.
(2)PurchasingmodelWeadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplandevelopedbythesalesdepartmentandtheproductionplandrawnupbytheproductiondepartmentintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchaseaccordingtosuchdemand.Meanwhile,thepurchasingdepartmentmakesaplantoguidepartsprocurementaccordingtothesalesdepartment'ssalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.
(3)ProductionmodelWeadoptthe"make-to-order"productionmanagementmodel.Thesalesdepartmentmakessalesplansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedbackofexistingcustomers'purchasingintentions.TheCompany'sproductiondepartmentmakestheproductionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanmadebythesalesdepartmentandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality.
(4)SalemodelWeadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory,andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.
4.TheCompany'spositioninthemarketWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"ChangchaiRobin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsofChinaInternalCombustionEngineIndustryAssociation(CICEIA),asthelargestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
5.KeyPerformanceDrivers
(1)NationalpolicydriverInrecentyears,variousdepartmentsofthestatehaveintroducedaseriesofpreferentialpoliciestoencouragethedevelopmentofinternalcombustionengineindustry.Intermsofagriculturalmachinery,thecentralgovernmenthastakensolvingtheproblemsrelatingto"agriculture,ruralareasandfarmers"asthetoppriorityoftheworkofthePartyandthegovernment,andissuedaseriesofpoliciestobenefitfarmers,creatingagoodatmosphereforpromotingthedevelopmentofagricultureandeconomyandsocietyinruralareas;intermsofconstructionmachinery,thestrategyof"westerndevelopment",the"eightverticalandeighthorizontal"high-speedrailwaynetworkplanandthepolicyof"newruralconstruction"haveallcreatedagoodpolicyenvironmentfortheapplicationofinternalcombustionengineindownstreamconstructionmachinery.
(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborativeproduction,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargainingpower.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines.
(3)StableandefficientR&DteamWehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.
(4)Well-knownbrandwithmanywell-knowncustomersTheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Ourdieselandgasolineengines,aspowersourcesofagriculturalmachinery,constructionmachineryandcommercialvehicles,showexcellentperformanceinpowerrange,reliability,powerperlitre,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnershiptimeexceeding15years.ManymainengineplantcustomersoftheCompanyarewell-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket.IIICoreCompetitivenessAnalysis
1.AdvantagesinBrandChangchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,IATF16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorably
rankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2021,theCompanywasawardedhonorarytitlessuchasNationalTop100EnterprisesofMachineryIndustry,NationalDemonstrationEnterpriseofProductandServiceQualityIntegrity,NationalQualityLeaderofInternalCombustionEngineIndustry,NationalQualityLeadingBrandofInternalCombustionEngineIndustry,Top100InnovativeEnterprisesofJiangsuProvince,DemonstrationInstitutionofIntelligentAgriculturalMachineryManufacturingofJiangsuProvince,"Five-starEnterpriseintheCloud"ofJiangsuProvince.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,twoQCachievementswonthefirstandsecondprizesoftheAchievementsof2021ExcellentNationalQualityControlTeam'sActivityofNationalMachineryIndustry,the4G33V16dieselenginewasawardedthetitleofNationalMachineryIndustryCustomerSatisfactionProduct,theprojectofKeyTechnologyandEquipmentforDesignandManufactureofLowFrictionFunctionalSurfaceofPowerAssemblywonthesecondprizeofScienceandTechnologyAwardofJiangsuProvince,the4G33Tand4G33V16dieselengineswererecognizedasHigh-techProductsofChangzhouCity,theprojectofDieselOutboardEnginePowerandAssemblyDevelopmentwaslistedinScienceandTechnologyPlanofChangzhouCityin2021,andtheprojectofDevelopmentofLightweightLowEmissionDieselEngineofCommonRailSerieswonthethirdprizeinthecity'sinnovationandentrepreneurshipcompetitionin2021.DuringtheReportingPeriod,atotalof22patentsweredeclaredand19patentsweregranted.Currently,theCompanyhasatotalof152patentsgrantedbyauthoritiesathomeandabroad,including12inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,26salesservicecenters,and709designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.IVCoreBusinessAnalysis
1.OverviewIn2021,infaceofcomplexandseveresituationssuchasadjustmentstotheagriculturalmachinerysubsidypolicy,recurrentdomesticandoverseasepidemics,priceincreaseofrawmaterials,impactonthesupplychainandindustrychain,andshrinkingmarketdemand,theCompanyfocusedontheimplementationofannualpolicyandtarget,andpromotedworkinallrespectswiththemainlineof"strengtheningthemainbusiness,accelerating
transformation,expandingtheareas,andimprovingqualityandefficiency".TheCompanymaintainedgoodeconomicoperation,achievedgoodbusinessperformance,andwonaseriesofhonorsbyfocusingontechnologyinnovationandqualityimprovementandadheringtothedualdrivebymainbusinessandcapitaloperation.DuringtheReportingPeriod,theCompanysold749,300dieselengines,gasolineenginesandrelatedgeneratorsets,including153,000gasolineengines,generatingtotalsalesrevenueofRMB2,452million,anincreaseof
6.79%year-on-year.Intermsofproductdevelopmentandsupport,theCompanymadeeffortsinsegments,developedtheCC12Mdieselengineforthemotorcyclearea,andmettheemissionrequirementsthroughtheplanofcommonrail,EGR,andDOC.Lightpowermadeabreakthroughincoldchainandconstructionmachinerysupport,andmultiplevarietiesofdieselenginescompletedtheperformancetestsandreliabilityverification,withorderlycarryingandsupporting;intheareaofshipbornegeneratorsets,carryingofnewproductswasconductedinsmallbatches.Foradvantageousproducts,adaptivequalityimprovementandoptimizationanddevelopmentofsupportingcomponentswerecarriedout.Intermsofmarketservices,theCompanymademulti-dimensionaleffortsinbothinternalandexternalmarkets,continuouslyoptimizedthedistributionnetwork,activelyrespondedtotheforeigntrademarketenvironment,andimplementedadual-brandandintegratedsalesstrategyforwholemachinesandaccessories,fullyguaranteeingthecontinuousgrowthofproductsales.Themarketservicesatisfactionof2021was85.36%,asteadyincreaseyear-on-year.Theserviceresponseandtimelinessduringthefarmingseasonwerebasicallythesameaslastyear.Ayear-on-yearincreaseinrevenuefromsalesofaccessoriesandoilwasachieved.Intermsofqualitymanagement,theCompanystrictlyenforcedthequalityresponsibilitysystem,strengthenedthequalitycontrolprocessmanagement,andeffectivelyreducedqualitylosswhileimprovingproductreliability.TheCompanyconductedqualityimprovementfocusingonqualityproblemsofkeyproductsandmajormarketfailureproblems,improvedtherapidresponsemechanismandprocedureforbatchproblems,andcontinuouslyreducedtheon-sitezero-kilometerfailurerateofthewholevehicleenterprise.Intermsofinternalmanagement,theCompanycontinuouslystrengthenedrefinedmanagementandcomprehensivelyimprovedtheefficiencyofproduction,operationandmanagement.TheCompanymadesolideffortstoreducecostsandcutexpenses,strengthenedstandardized,normalizedandinstitutionalizedsafetymanagement,andcontinuedtocarryoutthethree-yearactionofspecialsafetyrectificationofsafetyproduction,withanoverallstablesafetyproductionsituation.TheCompanystrengthenedenvironmentalprotectionrectificationwork.Theenvironmentalmanagementwaseffective,andtheCompanysuccessfullypassedtheISO14001environmentalsystemsupervisionandreviewduringtheyear.DuringtheReportingPeriod,theCompany'snon-publicshareissuanceprojectwassuccessfullyissued,theraisedfundswereremittedtotheCompany'sspecialaccountforfundraisingandunderwentcapitalverification,andtheadditionalshareswerelistedonJuly5.ChangchaiMachinery,theimplementationentityoftherelocationprojectoflightenginesandcastinginthefund-raisingproject,iscurrentlyintheequipmentinstallationandcommissioningstage,andisexpectedtohaveconditionsforpilotproductioninMay2022.Thedevelopmentprojectofthedieseloutboardenginefortheinnovationcapacitybuildingprojectofthetechnicalcenterisprogressingsmoothly.Thereliabilityverificationoftheoutboardengineassemblyhasbeenimplemented,andtheusercarryingtestoftheprototypehasbeenorganized,whichwasrecognizedbyusers.Smallbatchproductionhasbeenarrangedtoexpandtheusertestandfurtherexpandthemarketofdieseloutboardengine.
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
2021 | 2020 | Change(%) | |||
Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
Total | 2,452,430,515.60 | 100% | 2,296,464,711.24 | 100% | 6.79% |
Byoperatingdivision | |||||
Internalcombustionengines | 2,404,119,747.06 | 98.03% | 2,252,479,553.51 | 98.08% | 6.73% |
Other | 48,310,768.54 | 1.97% | 43,985,157.73 | 1.92% | 9.83% |
Byproductcategory | |||||
Dieselengines | 2,241,032,641.05 | 91.38% | 2,112,251,290.73 | 91.98% | 6.10% |
Gasolineengines | 149,717,934.82 | 6.10% | 132,735,777.75 | 5.78% | 12.79% |
Other | 61,679,939.73 | 2.52% | 51,477,642.76 | 2.24% | 19.82% |
Byoperatingsegment | |||||
Domestic | 2,038,317,678.97 | 83.11% | 1,922,972,122.74 | 83.74% | 6.00% |
Overseas | 414,112,836.63 | 16.89% | 373,492,588.50 | 16.26% | 10.88% |
Bymarketingmodel | |||||
Distribution | 689,413,386.97 | 28.11% | 617,839,609.20 | 26.90% | 11.58% |
Directsales | 1,763,017,128.63 | 71.89% | 1,678,625,102.04 | 73.10% | 5.03% |
(2)OperatingDivision,ProductCategory,OperatingSegmentorMarketingModelContributingover10%ofOperatingRevenueorOperatingProfit
√Applicable□Notapplicable
Unit:RMB
Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
Byoperatingdivision | ||||||
Internalcombustionengines | 2,404,119,747.06 | 2,051,932,677.42 | 14.65% | 6.73% | 6.96% | -0.18% |
Byproductcategory | ||||||
Dieselengines | 2,241,032,641.05 | 1,925,495,245.19 | 14.08% | 6.10% | 7.02% | -0.74% |
Gasolineengines | 149,717,934.82 | 128,977,618.86 | 13.85% | 12.79% | 19.13% | -4.58% |
Byoperatingsegment | ||||||
Domestic | 2,038,317,678.97 | 1,685,403,460.00 | 17.31% | 6.00% | 6.15% | -0.12% |
Overseas | 414,112,836.63 | 402,517,677.20 | 2.80% | 10.88% | 10.93% | -0.05% |
Bymarketingmodel | ||||||
Distribution | 689,413,386.97 | 572,431,613.43 | 16.97% | 11.58% | 11.95% | -0.27% |
Directsales | 1,763,017,128.63 | 1,515,489,523.77 | 14.04% | 5.03% | 5.30% | -0.22% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
Operatingdivision | Item | Unit | 2021 | 2020 | Change(%) |
Dieselengines | Unitsales | Unit | 596,279 | 627,331 | -4.95% |
Output | Unit | 601,253 | 657,917 | -8.61% | |
Inventory | Unit | 83,563 | 78,589 | 6.33% |
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√Notapplicable
(4)ExecutionProgressofMajorSignedSalesandPurchaseContractsintheReportingPeriod
□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
Productcategory | Item | 2021 | 2020 | Change(%) | ||
Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
Dieselengines | Rawmaterials | 1,659,710,451.07 | 79.61% | 1,526,191,466.63 | 78.24% | 8.75% |
Dieselengines | Laborcost | 240,110,930.78 | 11.52% | 222,248,951.31 | 11.39% | 8.04% |
Dieselengines | Depreciation | 71,198,110.78 | 3.42% | 71,562,851.51 | 3.67% | -0.51% |
Dieselengines | Energy | 30,044,125.27 | 1.44% | 34,214,195.38 | 1.75% | -12.19% |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
□Yes√No
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
(8)MajorCustomersandSuppliersMajorcustomers:
Totalsalestotopfivecustomers(RMB) | 1,163,820,018.04 |
Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 47.46% |
Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivecustomers:
No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
1 | Customer1 | 562,503,236.06 | 22.94% |
2 | Customer2 | 233,708,017.39 | 9.53% |
3 | Customer3 | 157,425,933.38 | 6.42% |
4 | Customer4 | 105,465,470.21 | 4.30% |
5 | Customer5 | 104,717,361.00 | 4.27% |
Total | -- | 1,163,820,018.04 | 47.46% |
Otherinformationaboutmajorcustomers:
□Applicable√NotapplicableMajorsuppliers:
Totalpurchasesfromtopfivesuppliers(RMB) | 327,640,433.65 |
Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 16.88% |
Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivesuppliers:
No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
1 | Supplier1 | 153,851,839.50 | 7.93% |
2 | Supplier2 | 70,110,846.63 | 3.61% |
3 | Supplier3 | 46,115,577.30 | 2.38% |
4 | Supplier4 | 29,257,550.55 | 1.51% |
5 | Supplier5 | 28,304,619.67 | 1.46% |
Total | -- | 327,640,433.65 | 16.88% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable
3.Expense
Unit:RMB
2021 | 2020 | Change(%) | Reasonforanysignificantchange | |
Sellingexpense | 117,242,290.32 | 128,372,278.62 | -8.67% | |
Administrativeexpense | 98,890,284.22 | 87,446,195.74 | 13.09% | |
Financecosts | 1,203,615.80 | 15,768,310.32 | -92.37% | Decreasedexchangelosses |
R&Dexpenses | 82,390,284.14 | 72,258,781.08 | 14.02% |
4.R&DInvestments
√Applicable□Notapplicable
MajorR&Dproject | Purpose | Progress | Specificobjectives | ExpectedimpactontheCompany |
Developmentof12KWdieselenginesilentinvertergeneratorset | Developingahigher-performancesilentinvertergeneratorsettomeetmarketdemand | Inprogress | Improvingtheautomationandintelligencelevelofthegeneratorset,enhancingtheperformanceandreliabilityoftheset,andachievingsetoperationwithlownoiseandlowfuelconsumptiontomeettheemissionrequirements. | Aftertheimplementationoftheproject,thetechnologyandmarketcompetitivenessoftheproductwillbeenhanced. |
DevelopmentofV402dieselengine | Developingahigher-performancelightmulti-cylinderdieselenginethatmeetstheemissionrequirements | Inprogress | Conductingstructuraloptimizationofdieselenginecomponentstoimproveproductperformanceandreliability. | Aftertheimplementationoftheproject,theproductwillmeettherequirementsofnon-roadChinaIVvehicleemissionregulations,thesupportingrequirementsof |
machinery,andmarketdemand. | ||||
DevelopmentofD15dieseloutboardengine | Developingmoreefficient,environmentallyfriendlyandenergy-savingdiesel-poweredproducts | Inprogress | Conductingmajordesignoptimizationoftheenginestructureandperformancetoimprovethereliability,fuelconsumption,emissionsandotherindicatorsoftheproduct,soastoreachtheadvancedlevelofsimilarforeignproducts. | Aftertheimplementationoftheproject,theproductwillmeettherequirementsofnon-roadChinaIVvehicleemissionregulationsandopenupthemarketofshipmachinery. |
Developmentofdiesel-electrichybridproducts | Developingefficientandenvironmentallyfriendlydiesel-poweredproducts | Inprogress | Improvingtheemissioncharacteristicsandeconomiccharacteristicsofdiesel-electrichybriddieselenginestoenhancetheenergyefficiency,enduranceandreliability. | Aftertheimplementationoftheproject,theproductmeetsthemarketdemandandmakesthegoodsqualityandlogisticsefficiencyofthecoldchaintimely,safeandefficient,providingawhole-proceduretemperatureandqualitymanagementsolution. |
Developmentofamulti-cylinderseriesofdieselenginesthatmeetnon-roadEuropeanVstandards | Improvingproductperformanceanddevelopingmulti-cylinderdieselenginesthatbettermeetemissionstandards | Completed | Conductingmajordesignoptimizationofthestructureandperformanceofthedieselenginetoimprovethereliability,fuelconsumption,emissionsandotherindicatorsoftheproduct,soastomeettheEuropeanVemissionstandards. | Itmeetsthesupportingrequirementsofvarioustypesofsmallagriculturalmachineryandbroadensthemarket. |
Developmentofsingle-cylinderair-cooleddieselenginesthatmeet | Developmentofcontroltechnologyofemissionreductionandsingle-cylinderair-cooleddiesel | Completed | Optimizingcomponentsrelatedtoemissionperformancetoimprovethereliability,fuelconsumption,emissionsandotherindicatorsof | Itenrichestheproductseries,meetsthesupportingrequirementsofnon-roadmachinery,andfurtherexpandsand |
non-roadEuropeanVstandards | enginesthataremorecompliantwithemissionstandards | theproduct,soastomeettheEuropeanVemissionstandards. | consolidatesthemarketshare. |
DetailsaboutR&Dpersonnel:
2021 | 2020 | Change(%) | |
NumberofR&Dpersonnel | 264 | 253 | 4.35% |
R&Dpersonnelas%oftotalemployees | 9.55% | 8.84% | 0.71% |
EducationalbackgroundofR&Dpersonnel | —— | —— | —— |
Bachelor’sdegree | 117 | 117 | 0.00% |
Master’sdegree | 13 | 13 | 0.00% |
AgestructureofR&Dpersonnel | —— | —— | —— |
Below30 | 34 | 32 | 6.25% |
30~40 | 95 | 98 | -3.06% |
DetailsaboutR&Dinvestments:
2021 | 2020 | Change(%) | |
R&Dinvestments(RMB) | 82,390,284.14 | 72,258,781.08 | 14.02% |
R&Dinvestmentsas%ofoperatingrevenue | 3.36% | 3.15% | 0.21% |
CapitalizedR&Dinvestments(RMB) | 0.00 | 0.00 | --- |
CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 0.00% | 0.00% | --- |
ReasonsforanysignificantchangeinthecompositionofR&Dpersonnelandtheimpact:
□Applicable√NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonsforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
Item | 2021 | 2020 | Change(%) |
Subtotalofcashgeneratedfromoperatingactivities | 1,878,728,640.47 | 2,281,623,334.91 | -17.66% |
Subtotalofcashusedinoperatingactivities | 2,145,052,419.77 | 2,029,826,680.38 | 5.68% |
Netcashgeneratedfrom/usedinoperatingactivities | -266,323,779.30 | 251,796,654.53 | -- |
Subtotalofcashgeneratedfrominvestingactivities | 385,966,151.68 | 564,355,776.61 | -31.75% |
Subtotalofcashusedininvestingactivities | 851,480,343.34 | 717,612,880.11 | 18.54% |
Netcashgeneratedfrom/usedin | -465,514,191.66 | -153,257,103.50 | -- |
investingactivities | |||
Subtotalofcashgeneratedfromfinancingactivities | 711,844,747.79 | 22,000,000.00 | 3,135.66% |
Subtotalofcashusedinfinancingactivities | 45,328,892.65 | 27,732,890.38 | 63.45% |
Netcashgeneratedfrom/usedinfinancingactivities | 666,515,855.14 | -5,732,890.38 | -- |
Netincreaseincashandcashequivalents | -67,537,318.91 | 83,979,542.30 | -- |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable?NotapplicableThesignificantchangeinnetcashflowfromoperatingactivitiesoverthesameperiodismainlycausedbytheincreaseintheproportionofbankacceptancebillsinthepaymentforgoodsreceivedbythecompanyduringthereportingperiod,andthesupportoflargepurchasepaymentforsuppliersduetotherisingpriceofrawmaterialsandtheimpactoftheepidemicThesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedininvestingactivitieswasprimarilyduetotheinputoftheCompany’sraisedfundstoChangchaiMachinery’sconstructioninprogress,andtheuseofcertainidleraisedfundsforcashmanagement.Thesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedinfinancingactivitieswasprimarilybecausetheCompanyraisedagrossamountofRMB634,999,936.40(netamount:RMB620,665,733.97)inaprivateplacementof144,318,181RMB-denominatedordinaryshares(A-stock)duringtheReportingPeriod.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod
√Applicable?NotapplicableThesignificantdifferencebetweenthenetcashflowgeneratedbythecompany'soperatingactivitiesduringthereportingperiodandtheannualnetprofitismainlycausedbytheincreaseintheproportionofbankacceptancebillsandtheincreaseofoperatingreceivablesinthepaymentforgoodsreceivedbythecompanyduringthereportingperiod.VAnalysisofNon-CoreBusinesses
□Applicable√NotapplicableVIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
31December2021 | 1January2021 | Changeinpercentage(%) | Reasonforanysignificantchange | ||
Amount | As%oftotalassets | Amount | As%oftotalassets |
Monetaryassets | 707,966,678.74 | 14.57% | 760,728,222.85 | 19.24% | -4.67% | |
Accountsreceivable | 375,209,126.48 | 7.72% | 397,154,016.49 | 10.05% | -2.33% | |
Inventories | 651,083,758.18 | 13.40% | 606,680,340.55 | 15.35% | -1.95% | |
Investmentproperty | 44,597,255.21 | 0.92% | 46,239,326.03 | 1.17% | -0.25% | |
Fixedassets | 402,915,521.65 | 8.29% | 454,181,555.68 | 11.49% | -3.20% | |
Constructioninprogress | 270,305,690.91 | 5.56% | 66,502,432.41 | 1.68% | 3.88% | Wholly-ownedsubsidiaryChangchaiMachinerywasinaconstructionperiodduringtheReportingPeriod. |
Short-termborrowings | 73,971,466.65 | 1.52% | 22,000,000.00 | 0.56% | 0.96% | IncreaseddiscountedbankacceptancenotesthatwereundueattheendoftheReportingPeriod. |
Contractliabilities | 26,864,081.97 | 0.55% | 35,944,517.15 | 0.91% | -0.36% |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
Financialassets | ||||||||
1.Held-for-tradingfinancialassets(derivativefinancialassetsexclusive) | 11,500,272.00 | 74,810,411.81 | 0.00 | 844,889,944.71 | 572,790,216.71 | 45,642,849.76 | 404,053,261.57 |
2.Derivativefinancialassets | ||||||||
3.Otherdebtinvestment | ||||||||
4.Investmentinotherequityinstruments | 685,137,950.87 | 595,307,646.53 | 0.00 | 0.00 | 0.00 | 0.00 | 779,877,646.53 | |
Subtotaloffinancialassets | 696,638,222.87 | 74,810,411.81 | 595,307,646.53 | 0.00 | 844,889,944.71 | 572,790,216.71 | 45,642,849.76 | 1,183,930,908.10 |
Investmentproperty | ||||||||
Productivelivingassets | ||||||||
Other | 98,732,938.63 | 33,750,000.00 | 0.00 | 0.00 | 64,148,226.39 | 590,088.87 | -45,642,849.76 | 150,398,226.39 |
Totalofabove | 795,371,161.50 | 108,560,411.81 | 595,307,646.53 | 0.00 | 909,038,171.10 | 573,380,305.58 | 0.00 | 1,334,329,134.49 |
Financialliabilities | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
Item | Endingcarryingvalue | Reasons |
Monetaryassets | 145,564,457.15 | Securitydepositsassociatedwithbankacceptancenotes,environment,etc. |
Houseconstructions | 1,760,577.22 | Collateralforbankloan |
Landuseright | 911,388.42 | Collateralforbankloan |
Machineryequipment | 30,560,526.26 | Collateralforbankloan |
Paymentobligationsinrelationtodiscountednotes | 61,971,466.65 |
thatwereundue | ||
Unduetransferredbillpaymentobligation | 72,391,302.15 | |
Total | 313,159,717.85 | -- |
VIIInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
InvestmentsmadeinReportingPeriod(RMB) | Investmentsmadeinsameperiodoflastyear(RMB) | +/-% |
160,000,000.00 | 154,786,000.00 | 3.37% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
Investee | Mainbusiness | Investmentmethod | Investmentamount | Shareholdingpercentage | Capitalresources | Partner | Investmentterm | Typeofproducts | Progressasofthebalancesheetdate | Estimatedincome | ProfitsorlossesofinvestmentintheReportingPeriod | Involvinginlawsuitornot | Disclosuredate(ifany) | Disclosureindex(ifany) |
JiangsuChangchaiMachineryCo.,Ltd. | Internalcombustionengine,relatedgeneratorsetsandparts | Capitalcontribution | 160,000,000.00 | 100.00% | Self-funded | None | Long-term | Internalcombustionengine,relatedgeneratorsetsandparts | Theinputhasbeenmade | 0.00 | -1,868,343.80 | Not | 26February2019 | 2019-004 |
Total | -- | -- | 160,000,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -1,868,343.80 | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
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 | 455,175,000.00 | 0.00 | 455,296,000.00 | 0.00 | 0.00 | 0.00 | 497,080,000.00 | Investmentinotherequit | Self-funded |
yinstruments | |||||||||||||
Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 127,764,000.00 | 0.00 | 93,636,000.00 | 0.00 | 0.00 | 0.00 | 136,422,000.00 | Investmentinotherequityinstruments | Self-funded |
Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 38,282,105.00 | -14,145,766.00 | 0.00 | 0.00 | 0.00 | -14,145,766.00 | 24,136,339.00 | Held-for-tradingfinancialassets | Self-funded |
Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 7,200,000.00 | 80,640,000.00 | 0.00 | 0.00 | 0.00 | 80,640,000.00 | 87,840,000.00 | Held-for-tradingfinancialassets | Self-funded |
Domestic/foreignstock | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 160,744.76 | 128,255.24 | 0.00 | 0.00 | 0.00 | 128,255.24 | 289,000.00 | Held-for-tradingfinancialassets | Self-funded |
Domestic/foreignstock | 832885 | StarsScienceandTechnology | 3,600,000.00 | Fairvaluemethod | 3,600,000.00 | 6,075,000.00 | 0.00 | 0.00 | 0.00 | 6,075,000.00 | 9,675,000.00 | Held-for-tradingfinancialasset | Self-funded |
s | |||||||||||
Total | 115,532,012.76 | -- | 632,181,849.76 | 72,697,489.24 | 548,932,000.00 | 0.00 | 0.00 | 72,697,489.24 | 755,442,339.00 | -- | -- |
Disclosuredateoftheannouncementontheboard’sapprovalofthesecuritiesinvestments | N/A |
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofRaisedFunds
√Applicable□Notapplicable
(1)OverallUseofRaisedFunds
√Applicable□Notapplicable
Unit:RMB’0,000
Yearforfund-raising | Methodoffund-raising | Totalraisedfunds | Totalraisedfundsthathavebeenusedinthecurrentperiod | Totalraisedfundsthathavebeenusedaccumulatively | TotalraisedfundswithalteredpurposesduringtheReportingPeriod | Totalaccumulativeraisedfundswithalteredpurposes | Proportionoftotalaccumulativeraisedfundswithalteredpurposes | Totalraisedfundsthathavenotbeenusedyet | Useandownershipchangeofunusedraisedfunds | raisedfundsthathavebeenleftunusedforovertwoyears |
2021 | Non-publicofferin | 634,999,996.40 | 257,383,601.02 | 257,383,601.02 | 0.00 | 0.00 | 0.00 | 377,616,395.38 | Specialaccou | 0.00 |
g | ntfordepositingraisedfunds | |||||||||
Total | -- | 634,999,996.40 | 257,383,601.02 | 257,383,601.02 | 0.00 | 0.00 | 0.00 | 377,616,395.38 | -- | 0.00 |
Explanationoftheoveralluseofraisedfunds | ||||||||||
On17December2020,theCompanyreceivedtheReplyConcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.OnJune11,2021,thesubscribersofthisnon-publicofferinghavefullyremittedthesubscriptionfundstothebankaccountdesignatedbythesponsorinstitution,andthetotalamountoffundsraisedwasRMB634,999,996.40.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B061)wasissued.Withtheissuanceexpensesdeducted,theactualnetfundsraisedwereRMB620,665,733.97.OnJune15,2021,theaforementionedraisedfundswereremittedtothespecialaccountsetupbytheCompanyforraisedfundsfromthenon-publicofferingofshares.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B062)wasissued.Theraisedfundshaveallbeendepositedinthespecialaccountfortheraisedfundsandatripartitesupervisionagreementhasbeensignedwiththesponsorinstitutionandtheaccountopeningbankforthefundsraised.ThereisnomaterialdifferencebetweenthetripartitesupervisionagreementandthemodeltripartitesupervisionagreementofShenzhenStockExchange,andtheCompanystrictlycomplieswithitwhenusingtheraisedfunds. |
(2)CommittedProjectsofRaisedFunds
√Applicable□Notapplicable
Unit:RMB’0,000
Committedinvestmentprojectsandinvestmentofexcessiveraisedfunds | Whetherprojectshavebeenaltered(includingpartialalternation) | Totalcommittedinvestmentwithraisedfunds | Adjustedtotalinvestmentamount(1) | TheinvestmentamountduringtheReportingPeriod | AccumulativeinvestmentamountasoftheendoftheReportingPeriod(2) | InvestmentprogressasoftheendoftheReportingPeriod(3)=(2)/(1) | Datewhentheprojectsarereadyfortheirintendeduse | BenefitsrecordedduringtheReportingPeriod | Whethertheestimatedbenefitsarereached | Whethertherearematerialchangesintheprojectfeasibility |
Committedinvestmentprojects | ||||||||||
Relocatio | No | 547,667, | 547,667, | 241,071, | 241,071, | 44.02 | May | Not | Not | No |
nprojectoflightenginesandcasting | 100.00 | 100.00 | 542.28 | 542.28 | % | 2022 | applicable | applicable | ||
Innovationcapacitybuildingprojectofthetechnicalcenter | No | 87,332,900.00 | 72,998,600.00 | 1,259,250.00 | 1,259,250.00 | 1.73% | December2023 | Notapplicable | Notapplicable | No |
Subtotalofcommittedinvestmentprojects | -- | 635,000,000.00 | 620,665,700.00 | 242,330,792.28 | 242,330,792.28 | -- | -- | - | -- | -- |
Investmentofexcessiveraisedfunds | ||||||||||
Notapplicable | ||||||||||
Total | -- | 635,000,000.00 | 620,665,700.00 | 242,330,792.28 | 242,330,792.28 | -- | -- | - | -- | -- |
Casesandreasonsforfailingtoreachtheplannedprogressorpredictedreturn(byspecificprojects) | Notapplicable | |||||||||
Explanationsofthematerialchangesinthe | Notapplicable |
projectfeasibility | |
Amount,use,anduseprogressofexcessiveraisedfunds | Notapplicable |
Implementationoflocationchangesintheinvestmentprojectswiththeraisedfunds
Implementationoflocationchangesintheinvestmentprojectswiththeraisedfunds | Notapplicable |
Implementationofmethodadjustmentstotheinvestmentprojectswiththeraisedfunds
Implementationofmethodadjustmentstotheinvestmentprojectswiththeraisedfunds | Notapplicable |
Earlyinvestmentandplacementconcerningtheinvestmentprojectswiththe
Earlyinvestmentandplacementconcerningtheinvestmentprojectswiththe | Applicable |
Priortotheavailabilityoftheraisedfunds,inordertoensurethesmoothimplementationoftheinvestmentprojectswithraisedfunds,theCompanyuseditsownfundstoinvestinpartoftheinvestmentprojectswithraisedfundsandpaidpartoftheissuanceexpenses.AsofJune17,2021,thecumulativeamountoftheCompany'sself-financingfundspre-investedintheinvestmentprojectswithraisedfundswasRMB181,803,327.94,theamountofissuanceexpensesadvancedwasRMB2,358,490.56,totalingRMB184,161,818.50,andtheproposedreplacementamountwasRMB184,161,818.50.ThecapitalswereverifiedbytheGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),andtheVerificationReportonthePre-investmentofSelf-financingFundsintotheInvestmentProjectwithRaisedFundsandthePaymentofIssuanceExpensesbySelf-financingFundsofChangchaiCo.,Ltd.(S.G.W[2021]E1347)wasissuedonJune25,2021.OnJune28,2021, |
raisedfunds | theThirdInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonReplacingtheFundsPre-investedintheProjectandAdvancedIssuanceExpenseswiththeRaisedFunds,agreeingtousetheraisedfundsfromthenon-publicofferingofsharestoreplacetheself-financingfundstotalingRMB184,161,818.50thathadbeenpre-investedintheprojectpriortotheavailabilityoftheraisedfunds.Inaddition,XingyeSecuritiesCo.,Ltd.andDonghaiSecuritiesCo.,Ltd.issuedaverificationopinionontheuseofraisedfundstoreplaceself-financingfundsthathadbeeninvestedinadvanceintheprojectswithraisedfunds.Fordetails,seetheAnnouncementontheUseofRaisedFundstoReplacePre-investedProjectFundsandAdvancedIssueExpenses(AnnouncementNo.2021-036)publishedonCninfo(http://www.cninfo.com.cn)onJune30,2021. |
Temporaryreplenishmentofworkingcapitalwiththeidleraisedfunds | Notapplicable |
Surplusraisedfundsforprojectimplementationandreasonsforthesurplus
Surplusraisedfundsforprojectimplementationandreasonsforthesurplus | Notapplicable |
Useandownershipchangeofunusedraisedfunds
Useandownershipchangeofunusedraisedfunds | Depositedinthespecialaccountforraisedfunds |
Problemsintheuseofraisedfundsanddisclosure,or | OnJuly13,2021,theFourthInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonChangingtheImplementationEntityofSomeInvestmentProjectswithRaisedFunds,agreeingtochangetheimplementationentityoftheCompany'sinvestmentprojectswithfundsraisedthroughnon-publicofferingofshares,the"relocationprojectoflightenginesandcasting",fromChangchaiMachinery,awholly-ownedsubsidiaryoftheCompany,totheparentcompanyofChangchaiCo.,Ltd.Thematterdidnotchangetheuseandimplementationofthefundsraisedandwasnotasignificantchangeintheinvestmentprojectswithraisedfunds. |
othercases | The"relocationprojectoflightenginesandcasting"wasoriginallyindependentlyconstructedbyChangchaiMachineryandoperatedindependentlyaftertheconstructionwascompleted.Currently,themainprojectofChangchaiMachineryhasbeencompleted,andsomeoftheequipmentwillberelocatedfromthecurrentlightengineandcastingbasetoChangchaiMachinerysuccessively.AftertheequipmentinvestedbyChangchaiMachineryisinstalled,commissionedandformallyputintooperation,theimplementationentityoftheprojectwillchangetoChangchai'sparentcompany.Basedonthescaleandbrandeffectofthelistedcompany,theaforementionedchangeswillbemorebeneficialtotheactualoperationoftheprojectinthefutureandwillnothaveasignificantimpactontheconsolidatedstatementsofthelistedcompany. |
(3)AlteredProjectsofRaisedFunds
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√NotapplicableIXMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 189,600,396.86 | 88,373,637.91 | 229,098,137.33 | 2,312,364.88 | 2,318,945.21 |
ChangchaiWanzhou | Subsidiary | Dieselengine | 85,000,000.00 | 72,342,232.67 | 49,916,215.92 | 42,629,379.24 | 491,150.73 | 386,567.27 |
assembly | ||||||||
HorizonInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 137,604,313.27 | 111,368,910.56 | 0.00 | 68,830,821.65 | 51,654,376.43 |
HorizonAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 14,830,191.37 | -10,845,107.80 | 14,362,872.77 | -4,579,701.60 | -4,579,701.60 |
ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 119,883,552.55 | 99,931,461.70 | 149,717,934.82 | 3,035,835.66 | 3,228,906.53 |
ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 300,000,000.00 | 362,508,931.98 | 296,143,655.39 | 0.00 | -2,428,707.63 | -1,868,343.80 |
XingshengRealEstateManagement | Subsidiary | Realestatemanagementservice | 1000,000.00 | 6,356,175.89 | 4,217,440.40 | 5,858,835.76 | 894,857.18 | 808,767.74 |
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable√NotapplicableOtherinformationaboutprincipalsubsidiariesandjointstockcompanies:
ChangzhouHorizonInvestmentCo.,Ltd.(HorizonInvestment),awholly-ownedsubsidiaryoftheCompany,reportedanetprofitofRMB51.6544millionin2021,up342.06%yearonyear.ThisismainlybecauseJiangsuLianceElectromechanicalTechnologyCo.,Ltd.(LianceTechnology),whereHorizonInvestmentownsastake,wentpublicontheSSESTARMarketinMay2021,andtheCompany’sinterestinLianceTechnologyisrecognizedas“financialassetsatfairvaluethroughprofitorloss”.ItisalsoaresultoftheincreasedfairvalueofequityinterestsheldinLianceTechnology,andGuilinStarsScienceandTechnologyCo.,Ltd.duringtheReportingPeriod.
XStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
XIProspects
1.DevelopmentstrategyoftheCompanyTheCompany’sdevelopmentstrategyistobaseonfarmmachinery,becomestrongerintheenginebusiness,exploremoremarketsanddevelopinascientificway.TheCompanywillmakefulluseofthepolicy-baseddividendofstrongnationalsupportforagriculturalproductionanddevelopmentofagriculturalmachinerytoacceleratethetechnologicalupgradeoftraditionalpowerproducts,andalsotoachievediversifieddevelopmentoftheindustry.TheCompanywillacceleratethetechnologicalupgradeoftraditionalpowerproductsandalsoachievediversifieddevelopmentoftheindustry.TheCompanywillstartrefinancingprojectsinduecoursebasedonthecapitaldemandandproductplanning.Themaindevelopmentdirectionsareasfollows:
(1)AcceleratingtechnologicalupgradingandareaexpansionfortraditionalproductsFirst,traditionalproductswillbedevelopedinthedirectionofintelligentandnetworkedhigh-endproducts.Basedonthethreecharacteristicsofagriculturalmachineryproductswillhave,namelyelectronic,networkedandintelligent,theCompanywillpromotetheapplicationofadvancedtechnologiessuchastheInternet,bigdata,artificialintelligenceandnewmaterialstoproductdevelopment,andmaketheproductswithintelligentcontrol,real-timemonitoringandbigdatacollectionandanalysisfunctionswhilepursuingenergysavingandemissionreduction,soastonotonlyenhancethetechnicalstrengthofproductsandstrengthentheexistingadvantageousproducts,butalsopursueusersatisfactionandmakeChangchaiproductsappreciateinvalue.Second,traditionalproductswillbedevelopedintheterminaldirection.Thedieselengineisanintermediateproductandacoreproducttodevelopintheterminaldirection.Atpresent,theCompany'smainproductsaresmallandmediumpowerdieselenginesandgeneralgasolineengines,themarketofsupportingfacilitiesismainlydistributedinagriculturalmachinery,plantprotectionmachinery,shipsandothernon-roadareas,andalsointheautomobilearea.Theupstreamanddownstreamoftheindustrychaincontaingreaterdevelopmentspaceandopportunities.Currently,Changchaiisfocusingongeneratorsets,outboardengines,coldchains,fishingboats,towersandotherterminalareas,withbroadprospects.TheCompanycanmakefulluseofthecapitalplatformofthelistedcompanytocutinattherighttimethroughjointventurecooperation,mergersandacquisitions,restructuring,etc.,toacceleratetheextensionoftheindustrialchainandbuildnewcompetitiveadvantages.
(2)PromotingindustrialtransformationanddevelopmentinthedirectionofcombinationwithnewenergyTheunstoppabledevelopmentofnewenergyhasimpactedinternalcombustionengineproducts,buttheopportunityexistsforalongtime.Whiletappingtheadvantagesoftraditionalindustries,internalcombustionenginesshoulddevelopwiththedevelopmentofnewenergyaswell.Atpresent,theCompanyhasinvestedinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.throughequityparticipationandinvestedinaprojectofwet-processseparatorfilmforlithiumbatteries.Inthefuture,theCompanywillincreaseitseffortstoexplorenewenergyareassuchaslithiumbatteryandhydrogenfuel,andpromotethedevelopmentoftheenterprisetowardthenewenergyindustrythroughcapitaloperation.
2.OperationplanfortheYear2022:
TheCompanywillconsolidatethetraditionalmarketofagriculturalmachinery,exploretheemergingareaofpower,paycloseattentiontoqualitytocreatefineproducts,innovatemanagementtohighlightefficiency,promotethesoundoperationofthepark,andleveragecapitaltopromotedevelopment.In2022,salesrevenueisexpectedtobeRMB2.3billion,andtheCompanywillensurethatnewproductssaleswillexceed10,000units.TheaboveoperationplandoesnotrepresenttheprofitforecastofY2022bythelistedcompany,andwhethercanberealizeddependsonvariousfactorsonthechangesofmarketconditionsandtheeffortlevelofthemanagementteam.Thereisalotofuncertainty,andinvestorsshouldpayspecialattentiononit.
3.PossiblefuturerisksandcountermeasuresoftheCompany
(1)Marketrisk:
Inrecentyears,theagriculturalindustryhasstillbeeninaperiodofdeepadjustment,subjecttocontinuedlowfoodprices,marketdemandsaturation,upgradesofChinaIVvehicleemissionstandardsandotheruncertainties.Theuserpurchasedemandisalsochanging,fromtheoriginalrigiddemandtoastock-basedrenewal,whilethereductioninuserrevenuehaslengthenedtherenewalcycle.Meanwhile,theprevalenceofglobaltradeprotectionism,thespreadofCOVID-19,abnormalfluctuationsininternationalfinancialmarketsandotherfactorshavebroughtsomeuncertaintytotheglobalmacroeconomicoutlook,whichhasanimpactontheareaofnon-roadmobilemachinery.Countermeasures:First,theCompanysolidifiesthetraditionalsupportingfieldsandfurtherexpandstheCompany'sadvantagesinthefieldofagriculturalmachinery.Second,theCompanyexpandsmorepossibilitiesforapplicationsinshipbornegeneratorsets,high-speedricetransplanters,coldchainvehicles,excavatorsandothersmallconstructionmachinery,conductsin-depthresearchanddevelopmentinnewareasanddevelopmentandsupportingofkeyproducts.Third,theCompanymakesactiveuseofthecapitalplatformtopushaheadcapitaloperationprojectsinasteadyandorderlymannertoservetheCompany'sdevelopment.
(2)Industrialrisk:
Inrecentyears,thestateadvocatesenergyconservationandemissionreduction.Newenergypowerrepresentedbypureelectric,hybridpowerandhydrogenfuelpowerhasgrabbedthemarketshareofdieselenginetoacertainextent.Atpresent,newenergypowerismainlyusedinvehicles.Itsuseinagriculturalmachineryisstillfacingproblemssuchashighcostandcomplexoperatingenvironment.However,asbreakthroughshavebeenmadeinnewenergybatterytechnology,thelocalapplicationscenarioofdieselenginemaybereplacedbynewenergypower.Countermeasures:Withregardtothelayoutofnewenergyindustry,theCompanyintensifieseffortsinexploringthenewenergyareaandactivelypromotesprojectconstructionanddevelopment.Meanwhile,theCompanymakespropereffortsinproductR&Dandexpandsnewdevelopmentdirectionsandsupportingareas.
(3)TheriskofrawmaterialpricefluctuationsTheCompany'srawmaterialpurchasepriceismainlyaffectedbyfactorssuchasmacroeconomiccycle,industrialpolicyadjustment,marketsupplyanddemandchanges.PricefluctuationsofrawmaterialsmayaffectCompany'sbusinessperformance.Countermeasures:Bystrengtheninginventoryandplanmanagement,costcontrolandothermeasures,theCompanyfurtherimprovesouroperatingefficiencyandreducetheupwardpressureoncosts.
(4)ForeigntraderiskAgainstthebackgroundsofcomplexandchangeableglobaleconomicenvironment,theepidemicbringsmoretoughchallengestotheoperationofforeigntrades.Theexportofproductscouldbeaffectedtosomeextentduetounstablefactors.Countermeasures:TheCompanyactivelyrespondstotheforeigntrademarketenvironment,implementsthedual-brandandintegratedsalesstrategyforwholemachinesandaccessories,andseeksprogresswhilemaintainingstability;theCompanystrengthensthemaintenanceandmanagementofoverseaskeymarketsandcustomers,intensifieseffortsinthedevelopmentofemergingmarketsandnewusers,andstrivestoimprovethesalesofhighvalue-addedproducts.
(5)Talentrisk:
TheCompanyneedshigh-leveltalents,highlyskilledtalentsandlackstalentstohelptheCompanyimproveitsoperationalefficiencyandstrengthentechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend.Therefore,thedemandforprofessionaltalentsandsenior
managementtalentshasincreasedsignificantly.Countermeasures:First,theCompanyinsistsontakingtheinitiativetopromotetheimplementationandeffectivenessofstafftrainingandtalentintroduction.Second,theCompanystrengthensthemanagementofcompensationandbenefits,andimprovestheperformanceappraisalpolicyandcompensationandbenefitspolicy.Third,theCompanyincreasesthetrainingoftalentsandimprovesthecareermanagementsystemofemployees.Fourth,theCompanypromotestheinformationizationofhumanresourcemanagementandfurtherimprovestheefficiencyofhumanresourcemanagement.
XIICommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviewsduringtheReportingPeriod
√Applicable□Notapplicable
Dateofvisit | Placeofvisit | Wayofvisit | Typeofvisitor | Visitor | Contentsandmaterialsprovided | Indextomaininquiryinformation |
2021-12-29 | EasyIR | Other | Individual | Individualinvestor | CustomersandoperationofHorizonNewEnergy | EasyIR |
2021-12-29 | EasyIR | Other | Individual | Individualinvestor | CapacityofHorizonNewEnergy | EasyIR |
2021-12-27 | EasyIR | Other | Individual | Individualinvestor | ZhenjiangSiyangequitybiddingtransactionfollow-up | EasyIR |
2021-12-27 | EasyIR | Other | Individual | Individualinvestor | InvestmentoftheCompanyinthenewenergyindustry | EasyIR |
2021-12-26 | EasyIR | Other | Individual | Individualinvestor | R&DprogressofthehybridpowerplatformoftheCompany | EasyIR |
2021-12-24 | EasyIR | Other | Individual | Individualinvestor | DevelopmentplanofHorizonNewEnergy | EasyIR |
2021-12-23 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforsynergisticdevelopmentbetweentheCompanyandthecontrollingshareholder | EasyIR |
2021-12-23 | EasyIR | Other | Individual | Individualinvestor | ProgressoftheCompany'sparticipationintheequityauctionofZhenjiangSiyang | EasyIR |
2021-12-09 | EasyIR | Other | Individual | Individualinvestor | CapacityofHorizonNewEnergy | EasyIR |
2021-12-01 | EasyIR | Other | Individual | Individualinvestor | ProductR&DoftheCompany | EasyIR |
2021-11-30 | EasyIR | Other | Individual | Individualinvestor | ProductR&DoftheCompany | EasyIR |
2021-11-23 | EasyIR | Other | Individual | Individualinvestor | SegmentoftheCompany | EasyIR |
2021-11-22 | EasyIR | Other | Individual | Individualinvestor | ProgressoftherelocationprojectoftheCompany | EasyIR |
2021-11-22 | EasyIR | Other | Individual | Individualinvestor | CustomersofHorizonNewEnergy | EasyIR |
2021-11-09 | EasyIR | Other | Individual | Individualinvestor | ApplicationofproductsoftheCompany | EasyIR |
2021-11-02 | EasyIR | Other | Individual | Individualinvestor | ConstructionprogressofHorizonNewEnergy | EasyIR |
2021-11-01 | EasyIR | Other | Individual | Individualinvestor | CapacityplanningofHorizonNewEnergy | EasyIR |
2021-10-28 | EasyIR | Other | Individual | Individualinvestor | CapacityandconstructionprogressofHorizonNewEnergy | EasyIR |
2021-10-26 | EasyIR | Other | Individual | Individualinvestor | Shareholders'shareholdingofHorizonNewEnergy | EasyIR |
2021-10-25 | EasyIR | Other | Individual | Individualinvestor | Shareholders'shareholdingofHorizonNewEnergy | EasyIR |
2021-10-20 | EasyIR | Other | Individual | Individualinvestor | DevelopmenttrendoftheindustryanddevelopmentplanoftheCompany | EasyIR |
2021-10-20 | EasyIR | Other | Individual | Individualinvestor | Company'sparticipationinChinaInternationalExhibitiononInternalCombustionEnginesandParts | EasyIR |
2021-10-19 | EasyIR | Other | Individual | Individualinvestor | CapacityofHorizonNewEnergy,progressoftherelocationprojectoftheCompany,andsuggestionsoftheofficialwebsite | EasyIR |
2021-10-19 | EasyIR | Other | Individual | Individualinvestor | CapacityofHorizonNewEnergy,progressoftherelocationprojectoftheCompany | EasyIR |
2021-10-18 | EasyIR | Other | Individual | Individualinvestor | ImpactofclimateandenvironmentontheCompany'sbusinessdevelopment | EasyIR |
2021-10-15 | EasyIR | Other | Individual | Individualinvestor | R&Dofnewenergyagriculturalmachinery | EasyIR |
2021-10-14 | EasyIR | Other | Individual | Individualinvestor | ApplicabilityofnewenergytotheCompany'sproducts | EasyIR |
2021-10-13 | EasyIR | Other | Individual | Individualinvestor | ResultsforecastreleaseoftheCompany | EasyIR |
2021-10-13 | EasyIR | Other | Individual | Individualinvestor | Suggestionsforinteractionbetweenthesecretaryofthe | EasyIR |
BoardofDirectorsandinvestors | ||||||
2021-10-09 | EasyIR | Other | Individual | Individualinvestor | Company'sproducts | EasyIR |
2021-10-04 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforexpansionoftheCompany'sproducts | EasyIR |
2021-09-30 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforinvestmentandcooperationintheagriculturalmachineryindustrychainoftheCompany | EasyIR |
2021-09-30 | EasyIR | Other | Individual | Individualinvestor | DevelopmentoftheCompanyafterthestrategicreorganizationofstate-ownedcapitalandsubsequentplanning | EasyIR |
2021-09-27 | EasyIR | Other | Individual | Individualinvestor | Company'sgeneratorsetbusiness | EasyIR |
2021-09-27 | EasyIR | Other | Individual | Individualinvestor | Company'sgeneratorsetbusiness | EasyIR |
2021-09-27 | EasyIR | Other | Individual | Individualinvestor | Company'sgeneratorsetbusiness | EasyIR |
2021-09-24 | EasyIR | Other | Individual | Individualinvestor | Company'sgeneratorsetbusiness | EasyIR |
2021-09-22 | EasyIR | Other | Individual | Individualinvestor | ConstructionprogressoftheseparatorfilmprojectofHorizonNewEnergy | EasyIR |
2021-09-13 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforCompany'sdevelopment | EasyIR |
2021-09-13 | EasyIR | Other | Individual | Individualinvestor | ConstructionoftheseparatorfilmprojectofHorizonNewEnergy | EasyIR |
2021-09-09 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforCompany'sdevelopment | EasyIR |
2021-09-09 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforCompanytransformationanddevelopment | EasyIR |
2021-09-09 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforCompany'sdevelopment | EasyIR |
2021-09-09 | EasyIR | Other | Individual | Individualinvestor | ConstructionandcapacityoftheproductlineoftheseparatorfilmprojectofHorizonNewEnergy | EasyIR |
2021-08-27 | EasyIR | Other | Individual | Individualinvestor | IssuancetimeofAandBSharesoftheCompany | EasyIR |
2021-08-18 | EasyIR | Other | Individual | Individual | Suggestionsfordevelopmentof | EasyIR |
investor | thenewenergyindustry | |||||
2021-08-17 | EasyIR | Other | Individual | Individualinvestor | OperationstatusofthesubsidiaryChangchaiMachinery | EasyIR |
2021-08-11 | EasyIR | Other | Individual | Individualinvestor | TechnologyreserveoftheCompany | EasyIR |
2021-07-28 | EasyIR | Other | Individual | Individualinvestor | ProgressoftheCompany'srelocationprojectandtheimpactontheCompany | EasyIR |
2021-07-27 | EasyIR | Other | Individual | Individualinvestor | Follow-upplanningontheoriginalbaseoftheCompany'srelocationproject | EasyIR |
2021-07-26 | EasyIR | Other | Individual | Individualinvestor | CapitalincreaseplanandcapacityandproducttechnologyoftheseparatorfilmprojectofHorizonNewEnergy | EasyIR |
2021-07-20 | EasyIR | Other | Individual | Individualinvestor | EquitystructureofHorizonNewEnergy | EasyIR |
2021-07-20 | EasyIR | Other | Individual | Individualinvestor | ApplicationoftheseparatorfilmofHorizonNewEnergy | EasyIR |
2021-07-18 | EasyIR | Other | Individual | Individualinvestor | InvestmentoftheCompanyinthenewenergyindustry | EasyIR |
2021-07-13 | EasyIR | Other | Individual | Individualinvestor | CustomersoftheseparatorfilmprojectofHorizonNewEnergy | EasyIR |
2021-07-13 | EasyIR | Other | Individual | Individualinvestor | MainbusinessesofthesubsidiaryHorizonAgriculturalEquipment | EasyIR |
2021-07-02 | EasyIR | Other | Individual | Individualinvestor | Reasonsandprogressoftherelocationprojectoflightenginesandcasting | EasyIR |
2021-06-29 | EasyIR | Other | Individual | Individualinvestor | Projectresultsofthenon-publicofferingofshares | EasyIR |
2021-06-29 | EasyIR | Other | Individual | Individualinvestor | Numberofshareholders | EasyIR |
2021-06-27 | EasyIR | Other | Individual | Individualinvestor | Projectoftheseparatorfilmforlithiumbatteries | EasyIR |
2021-06-27 | EasyIR | Other | Individual | Individualinvestor | Company'sshareholdinginHorizonNewEnergy | EasyIR |
2021-06-21 | EasyIR | Other | Individual | Individualinvestor | Company'sexternalcooperation | EasyIR |
2021-06-17 | EasyIR | Other | Individual | Individualinvestor | Projectoftheseparatorfilmforlithiumbatteries | EasyIR |
2021-06-12 | EasyIR | Other | Individual | Individualinvestor | Capacityandshareholders'shareholdingofHorizonNew | EasyIR |
Energy | ||||||
2021-06-11 | EasyIR | Other | Individual | Individualinvestor | OperationstatusofHorizonNewEnergy | EasyIR |
2021-06-07 | EasyIR | Other | Individual | Individualinvestor | RelatedrelationshipoftheCompany | EasyIR |
2021-06-05 | EasyIR | Other | Individual | Individualinvestor | Projectoftheseparatorfilmforlithiumbatteriesinoperation | EasyIR |
2021-06-04 | EasyIR | Other | Individual | Individualinvestor | Progressoftheprojectoftheseparatorfilmforlithiumbatteries | EasyIR |
2021-06-02 | EasyIR | Other | Individual | Individualinvestor | NumberofshareholdersoftheCompany | EasyIR |
2021-05-30 | EasyIR | Other | Individual | Individualinvestor | ReasonsfortheCompany'snetincomegrowthinthefirstquarterof2020and2021 | EasyIR |
2021-05-28 | EasyIR | Other | Individual | Individualinvestor | Projectofthenon-publicofferingofsharesoftheCompany | EasyIR |
2021-05-27 | EasyIR | Other | Individual | Individualinvestor | InvestmentoftheCompany | EasyIR |
2021-05-27 | EasyIR | Other | Individual | Individualinvestor | Impactofrawmaterialpriceincrease | EasyIR |
2021-05-27 | EasyIR | Other | Individual | Individualinvestor | Issuanceoftheprojectofthenon-publicofferingofsharesoftheCompany | EasyIR |
2021-05-25 | EasyIR | Other | Individual | Individualinvestor | Company'sshareholdinginHorizonNewEnergy | EasyIR |
2021-05-24 | EasyIR | Other | Individual | Individualinvestor | Applicabilityoftheseparatorfilmforlithiumbatteriestosodiumbatteries | EasyIR |
2021-05-19 | EasyIR | Other | Individual | Individualinvestor | Company'sgeneratorbusiness | EasyIR |
2021-05-12 | EasyIR | Other | Individual | Individualinvestor | DevelopmentoftheCompany'sproductelectrification | EasyIR |
2021-05-11 | EasyIR | Other | Individual | Individualinvestor | ReasonsforthelocationchoiceofHorizonNewEnergy'ssubsidiary | EasyIR |
2021-05-11 | EasyIR | Other | Individual | Individualinvestor | Mixed-ownershipreformoftheCompany | EasyIR |
2021-05-11 | EasyIR | Other | Individual | Individualinvestor | CountermeasuresoftheCompanyforthepriceincreaseofrawmaterials | EasyIR |
2021-04-25 | EasyIR | Other | Individual | Individualinvestor | Companysalesoverview | EasyIR |
2021-04-21 | EasyIR | Other | Individual | Individualinvestor | Company'sobjectives | EasyIR |
2021-04-21 | EasyIR | Other | Individual | Individualinvestor | SupportandhelpofChangzhouInvestmentGrouptotheCompany | EasyIR |
2021-04-21 | EasyIR | Other | Individual | Individualinvestor | Company'sobjectives | EasyIR |
2021-04-21 | EasyIR | Other | Individual | Individualinvestor | Company'spurchaseandstorageoflandplots | EasyIR |
2021-04-15 | EasyIR | Other | Individual | Individualinvestor | Company'sdividends | EasyIR |
2021-04-08 | EasyIR | Other | Individual | Individualinvestor | InvestmentandR&DoftheCompanyinthenewenergyindustry | EasyIR |
2021-04-08 | EasyIR | Other | Individual | Individualinvestor | TransformationandupgradingoftheCompany | EasyIR |
2021-04-08 | EasyIR | Other | Individual | Individualinvestor | Company'spurchaseandstorageofplants | EasyIR |
2021-04-08 | EasyIR | Other | Individual | Individualinvestor | Company'sproductionandoperationstatus | EasyIR |
2021-04-08 | EasyIR | Other | Individual | Individualinvestor | Q1resultsforecastoftheCompany | EasyIR |
2021-04-08 | EasyIR | Other | Individual | Individualinvestor | Projectoftheseparatorfilmforlithiumbatteriesinoperation | EasyIR |
2021-04-08 | EasyIR | Other | Individual | Individualinvestor | Company'splanfordisposalofBankofJiangsushares | EasyIR |
2021-03-30 | EasyIR | Other | Individual | Individualinvestor | Company'soperationanddividends | EasyIR |
2021-03-12 | EasyIR | Other | Individual | Individualinvestor | Projectprogressofthenon-publicofferingofsharesoftheCompany | EasyIR |
2021-03-05 | EasyIR | Other | Individual | Individualinvestor | SupportingofagriculturalproductsoftheCompany | EasyIR |
2021-03-05 | EasyIR | Other | Individual | Individualinvestor | AgriculturalproductsoftheCompany | EasyIR |
2021-03-04 | EasyIR | Other | Individual | Individualinvestor | InvestmentoftheCompanyinthenewenergyindustry | EasyIR |
2021-03-02 | EasyIR | Other | Individual | Individualinvestor | InvestmentoftheCompanyinthenewenergyindustry | EasyIR |
2021-03-01 | EasyIR | Other | Individual | Individualinvestor | OperationmeasuresoftheCompany | EasyIR |
2021-02-25 | EasyIR | Other | Individual | Individualinvestor | CompensationandbonusesforCompany'semployees | EasyIR |
2021-02-24 | EasyIR | Other | Individual | Individual | SuggestionsforCompany's | EasyIR |
investor | development | |||||
2021-02-22 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforinvestmentoftheCompany | EasyIR |
2021-02-22 | EasyIR | Other | Individual | Individualinvestor | Projectprogressofthenon-publicofferingofsharesoftheCompany | EasyIR |
2021-02-22 | EasyIR | Other | Individual | Individualinvestor | ImpactofpoliciesonproductsoftheCompany | EasyIR |
2021-02-22 | EasyIR | Other | Individual | Individualinvestor | Company'sprofitsin2020 | EasyIR |
2021-02-21 | EasyIR | Other | Individual | Individualinvestor | ImpactofpoliciesontheCompany | EasyIR |
2021-02-21 | EasyIR | Other | Individual | Individualinvestor | SalesofagriculturalmachineryoftheCompany | EasyIR |
2021-02-21 | EasyIR | Other | Individual | Individualinvestor | SalesofdieselgeneratorsetsoftheCompany | EasyIR |
2021-02-19 | EasyIR | Other | Individual | Individualinvestor | NumberofshareholdersoftheCompany | EasyIR |
2021-02-18 | EasyIR | Other | Individual | Individualinvestor | Projectoftheseparatorfilmforlithiumbatteriesinoperation | EasyIR |
2021-02-18 | EasyIR | Other | Individual | Individualinvestor | Company'sexternalcooperation | EasyIR |
2021-02-03 | EasyIR | Other | Individual | Individualinvestor | SuggestionsfortheCompany'sexternalcooperationanddevelopment | EasyIR |
2021-02-03 | EasyIR | Other | Individual | Individualinvestor | CompensationandbonusesforCompany'semployees | EasyIR |
2021-02-03 | EasyIR | Other | Individual | Individualinvestor | InformationdisclosureoftheCompany | EasyIR |
2021-02-02 | EasyIR | Other | Individual | Individualinvestor | BusinessscopeoftheCompany | EasyIR |
2021-01-25 | EasyIR | Other | Individual | Individualinvestor | SuggestionsforCompany'sdevelopment | EasyIR |
2021-01-25 | EasyIR | Other | Individual | Individualinvestor | InvestmentoftheCompanyinthenewenergyindustry | EasyIR |
2021-01-22 | EasyIR | Other | Individual | Individualinvestor | Customersoftheprojectoftheseparatorfilmforlithiumbatteries | EasyIR |
2021-01-22 | EasyIR | Other | Individual | Individualinvestor | NumberofemployeesoftheCompany | EasyIR |
2021-01-18 | EasyIR | Other | Individual | Individualinvestor | Operationandprofitsoftheprojectoftheseparatorfilmforlithiumbatteries | EasyIR |
2021-01-06 | EasyIR | Other | Individual | Individual | Company'sexternal | EasyIR |
investor | cooperation | |||||
2021-01-05 | EasyIR | Other | Individual | Individualinvestor | PhaseIIConstructionoftheprojectoftheseparatorfilmforlithiumbatteries | EasyIR |
2021-01-05 | EasyIR | Other | Individual | Individualinvestor | InvestmentandequityparticipationoftheCompanyinKailongHigh-tech | EasyIR |
2021-01-05 | EasyIR | Other | Individual | Individualinvestor | InvestmentoftheCompanyinthenewenergyindustry | EasyIR |
2021-01-05 | EasyIR | Other | Individual | Individualinvestor | PhaseIIConstructionoftheprojectoftheseparatorfilmforlithiumbatteries | EasyIR |
PartIVCorporateGovernance
IGeneralInformationofCorporateGovernanceIntheReportingPeriod,theCompanywasstrictlyinlinewithlaws,statutessuchasCompanyLaw,SecuritiesLaws,CodeofCorporateGovernanceofListedCompanies,GuideOpiniononEstablishmentofIndependentDirectorSystembyListedCompaniesandGuidelinesonInternalControlsofListedCompaniesandsoon,continuouslyperfectedcorporategovernance,establishedandaccomplishedinternalmanagementandcontrolsystem,consistentlyanddeeplyputforwardcorporategovernanceactivities,soastofurthernormalizedoperationoftheCompany,raisingcorporategovernancelevel,layingaguardforsteadyandhealthydevelopmentoftheCompany,protectlegalrightsandinterestsoftheCompanyandallshareholders.TheCompanypromulgatedorrevisedaseriesofinternalcontrolsystemthroughallaspectsofnormaloperationandmanagementactivitiesinaccordancewitheachnationallawsandregulations,characteristicsoftheindustry,operationandself-managingbusiness,andimproveditcontinuously,andfinallyformedanormativemanagementsystem.Andformulatedaseriesofmanagementsystem,processandstandardcoveredeachoperationlinkandlevelofthefinancialassetscontrol,humanresourcesmanagement,qualityenvironmentmanagementandinternalauditsupervisoretc.,whichensuredalltheworkhadrulestofollow.Indicatebytickmarketwhetherthereisanymaterialincompliancewiththeapplicablelaws,administrativeregulationsandregulationsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.
IITheCompany’sIndependencefromItsControllingShareholderandActualControllerinAsset,Personnel,FinancialAffairs,OrganizationandBusiness
TheCompanywasindependentfromthecontrollingshareholderChangzhouInvestmentGroupCo.,Ltdintermsofassets,business,personnel,organizationandfinancing,withindependent&completebusinessandcapabilitytooperateindependently.
1.Assets:ThepropertyrightsrelationshipbetweentheCompanyandthecontrollingshareholderisclear,assetsareclearlydefined,andtherearenofunds,assetsandotherresourcesbeingoccupiedorusedwithoutcompensationbetweenthem.
2.Personnel:TheCompanyandthecontrollingshareholderareindependentofeachotherintermsoflabor,personnelandsalarymanagement,andeachhasanindependentmanagementorganization,asoundmanagementpolicy,andanindependentpersonnelappraisalandassessmentsystem.
3.Finance:TheCompanyhassetupaspecialfinancedepartment,establishedanindependentaccountingsystemandfinancialmanagementpolicy,openedanindependentbankaccount,andimplementedindependentaccountingandindependenttaxpayments.ThereisnointerferenceinthefinancialactivitiesoftheCompanybythecontrollingshareholder.
4.Institution:TheCompanyhasacompleteandindependentcorporategovernancestructureandhasestablishedasoundorganizationalsystemthatmeetsitsownproductionandoperationneeds,whichoperatesindependentlyandwell,andthereisnosubordinaterelationshipwiththefunctionaldepartmentsofthecontrollingshareholder.
5.Business:TheCompanyhasanindependentandcompletebusinesssystemwithindependentandautonomous
productionandoperationalcapability.TheCompanyconductsrelatedtransactionsreasonablyontheprincipleofindependence.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Resolution |
The2020AnnualGeneralMeeting | AnnualGeneralMeeting | 32.04% | 7May2021 | 8May2021 | Allproposalswereapproved.SeeAnnouncementNo.2021-028onResolutionsofthe2020AnnualGeneralMeeting. |
The1stExtraordinaryGeneralMeetingof2021 | ExtraordinaryGeneralMeeting | 32.26% | 2September2021 | 3September2021 | Allproposalswereapproved.SeeAnnouncementNo.2021-061onResolutionsofthe1stExtraordinaryGeneralMeetingof2021. |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√Notapplicable
VDirectors,SupervisorsandSeniorManagement
1.GeneralInformation
Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Endingshareholding(share) |
ShiXinkun | ChairmanoftheBoard | Incumbent | Male | 58 | 18October2016 | Uptonow | 0 |
ZhangXin | Director,GeneralManager | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
LinTian | Director | Incumbent | Male | 59 | 17December2018 | Uptonow | 0 |
XuYi | Director,Vice-generalManager | Incumbent | Male | 58 | 16April2020 | Uptonow | 0 |
JiangHe | Director,ChiefAccountant | Incumbent | Male | 50 | 16April2020 | Uptonow | 0 |
YangFeng | Director | Incumbent | Male | 50 | 16April2020 | Uptonow | 0 |
WangMancang | Independentdirector | Incumbent | Male | 59 | 16April2020 | Uptonow | 0 |
XingMin | Independentdirector | Incumbent | Male | 68 | 16April2020 | Uptonow | 0 |
ZhangYan | Independentdirector | Incumbent | Female | 52 | 16April2020 | Uptonow | 0 |
YinLihou | Vice-generalManager | Incumbent | Male | 58 | 18October2016 | Uptonow | 0 |
XieGuozhong | Vice-generalManager | Incumbent | Male | 53 | 16April2020 | Uptonow | 0 |
SunJianzhong | Vice-generalManager | Incumbent | Male | 50 | 16April2020 | Uptonow | 0 |
HeJianjiang | Vice-generalManagerandSecretaryoftheBoard | Incumbent | Male | 43 | 18October2016 | Uptonow | 0 |
HeJianguang | ChairmanoftheSupervisoryCommittee | Incumbent | Male | 58 | 17December2020 | Uptonow | 0 |
LuZhonggui | Supervisor | Incumbent | Male | 55 | 18October2016 | Uptonow | 0 |
LiuYi | Supervisor | Incumbent | Male | 53 | 18October2016 | Uptonow | 0 |
ChenLijia | Supervisor | Incumbent | Female | 39 | 16April2020 | Uptonow | 0 |
GeJiangli | Supervisor | Incumbent | Female | 52 | 16April2020 | Uptonow | 0 |
Total | -- | -- | -- | -- | -- | -- | 0 |
Indicatewhetheranydirector,supervisororseniormanagementresignedbeforetheexpiryoftheirtenureduring
theReportingPeriod.
□Yes√NoChangeofdirectors,supervisorsandseniormanagement:
√Applicable□Notapplicable
Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
HeJianjiang | Vice-generalManager | Appointed | 13December2021 | AppointedbytheBoard |
2.BiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
ShiXinkun:Nowheactsasvice-presidentofChangzhouInvestmentGroupCo.,Ltd.,theChairmanoftheBoardandPartySecretaryintheCompanyandtheChairmanoftheBoardinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.ZhangXin:HesuccessivelytookthepostsofSalesManager,GeneralManagerAssistant,andvice-generalmanagerinourcompany.Now,heactsasDirector,GeneralManager,deputyPartySecretaryoftheCompanyandexecutivedirectorofJiangsuChangchaiMachineryCo.,Ltd.LinTian:HesuccessivelyworkedasdeputydirectorofenterprisedevelopmentDept.,GMofinvestmentmanagementDept.IIandI,assistantpresidentinChangzhouInvestmentGroupCo.,Ltd.Nowheisthevicepresident,directorofChangzhouInvestmentGroupCo.,Ltd.,andthedirectoroftheCompany.XuYi:successivelyservedasthedirectorandassistanttotheGMoftheCompany’stechnologycenter,andcurrentlyservesasthedirectoranddeputyGMoftheCompany.JiangHe:successivelyservedastheaccountant,assistanttotheminister,andviceministerofthefinancialdepartmentoftheCompany.Heiscurrentlyadirector,chiefaccountantandministerofthefinancialdepartmentoftheCompany.YangFeng:successivelyservedasthebusinessmanageroftheShanghaiInvestmentBankingDepartmentofChinaEconomicDevelopmentTrustandInvestmentCo.,Ltd.,businessdirectoroftheinvestmentbankingdepartmentofOrientSecuritiesCo.,Ltd.,GMofandassistantchairmanofAJSecurities’investmentbankingdepartment,operationmanagementheadquarters,workedinthedevelopmentfinancedepartmentandinvestmentbankingdepartment,andservedastheEGMintheequipmentgroup,investmentrecommendationgroup,NEEQbusinessdepartmentandcomprehensivegroupofCITICSecuritiesCo.,Ltd.CurrentlyservingasthedirectorandGMofShanghaiLingheAssetManagementPartnership(LP),DaiwaSecuritiesChinaCo.,Ltd.,andthedirector
oftheCompany.WangMancang:successivelyservedasateacher,lecturer,lecturerandprofessorintheDepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity,andcurrentlyservesasthedirectoroftheDepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity,andthedirectorofInstituteofPublicEconomics,counselorofXi'anmunicipalgovernment,expertofthe"financialgroup"ofthegovernmentdecisionadvisorycommittee,independentdirectorofXi'anChenxiAviationTechnologyCorp.,Ltd.,ShaanxiConstructionMachineryCo.,Ltd,Chang'anInternationalTrustCo.,Ltd.,FocuslightTechnologiesInc.andtheCompany.XingMin:successivelyservedassecretaryofthePartyCommitteeandadministrativeassistantgeneralmanager(AGM)ofChinaNationalHeavyMachineryCorporation;secretaryofthePartyCommitteeandGMofChinaNationalMachineToolSalesandTechnicalServiceCorporation(CNMTC);currentlySecretary-GeneralofChinaInternalCombustionEngineIndustryAssociation(CICEIA),directorofActBlueCo.,Ltd.,IndependentDirectorofZhejiangZhongjianTechnologyCo.,Ltd.,JiangsuYunyiElectricCo.,Ltd.,WeifuHigh-TechnologyGroupCo.,Ltd.,ZhejiangXinchaiCo.,Ltd.,andtheCompany.ZhangYan:successivelyservedaschiefaccountantofChangzhouZhengdaCertifiedPublicAccountantsCo.,Ltd.,executivedeputychiefaccountantofJiangsuGongzhengCertifiedPublicAccountantsCo.,Ltd.,currentlyassociateprofessorofBusinessSchoolofJiangsuUniversityofTechnology,independentnon-executivedirectorofS-EnjoyServiceGroupCo.,Limited,independentdirectorofJiangsuChanghaiCompositeMaterialsCo.,Ltd.,WuxiSAHATElectricTechnologyCo.,Ltd.,JiangsuTianmuLakeTourismCo.,Ltd.,andtheCompany.YinLihou:HeworkedasMinisterofHumanResourcesDepartmentandGeneralManagerAssistant.NowheactsasDeputyGeneralManageroftheCompany,andtheChairmanoftheBoardofChangchaiRobin.XieGuozhong:successivelyactsasGeneralManagerAssistantoftheCompany,SupervisorandSecretaryofPartyGeneralBranch.NowheisDeputyGMoftheCompany,GeneralManageroftheSalesCompanyandChairmanoftheBoardofChangchaiWanzhou.SunJianzhong:successivelyservedasthedirectorofthetechnicalcenterandassistanttothegeneralmanageroftheCompany.HeiscurrentlythedeputygeneralmanageroftheCompany.HeJianjiang:HesuccessivelyactedastheStaffMember,AssistanttotheChief,andDeputyChiefoftheInvestmentandDevelopmentDepartment,andSecuritiesRepresentativeoftheCompany.NowheisDeputyGeneralManager,SecretaryoftheBoard,andChiefoftheInvestmentandDevelopmentDepartmentoftheCompany,aswellasDirector&GMofHorizonInvestment,DirectorofHorizonAgriculturalEquipmentandChangchaiWanzhou.HeJianguang:successivelyservedasdeputychiefofDesignSectionofChangzhouDieselEngineFactory,engineerofProductDevelopmentDepartment,deputydirectoroftheCompany’sJointVentureOffice,deputydirectorofTechnologyCenter,chiefengineer,director,generalmanager,vicechairmanofChangzhouDieselEngineFactory,amemberofthePartycommittee,secretaryoftheDisciplineInspectionCommissionandsupervisorofChangzhouInvestmentGroupCo.,Ltd.,currentlyamemberofthePartyCommitteeofChangzhouInvestmentGroupCo.,Ltd.,andchairmanoftheboardofsupervisorsoftheCompany.ChenLijia:vicepresidentandgeneralmanagerofriskcontrollegaldepartmentofChangzhouInvestmentGroup
Co.,Ltd.andsupervisoroftheCompany.GeJiangli:directorandsupervisorofHumanResourcesDepartmentoftheCompany.LuZhonggui:NowheactsasMinisterofpoliticalDepartmentoftheCompany,OfficeDirector,SecretaryofOrganPartyGeneralBranchaswellasemployeesupervisoroftheCompanyandDirectorofXingshengRealEstateManagement.LiuYi:HesuccessivelytookthepostsofAssistantMinisterofEnterpriseManagementDepartment.NowheactsasDirectorofAuditDepartmentandEmployeeSupervisoroftheCompany,SupervisorofChangchaiWanzhou,ChangchaiBenniu,HorizonInvestment,HorizonAgriculturalEquipment,ChangchaiRobin,ChangchaiMachineryandXingshengRealEstateManagement.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
LinTian | ChangzhouInvestmentGroupCo.,Ltd. | Vicepresident,director | December2017 | Yes | |
ChenLijia | ChangzhouInvestmentGroupCo.,Ltd. | VicePresident,GMofRiskControlLegalDepartment | March2018 | Yes | |
ShiXinkun | ChangzhouInvestmentGroupCo.,Ltd. | Vicepresident | No | ||
HeJianguang | ChangzhouInvestmentGroupCo.,Ltd. | MemberofthePartyCommittee | January2019 | Yes | |
Notes | N/A |
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
ShiXinkun | JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ChairmanoftheBoard | 19November2021 | No | |
YangFeng | DaiwaSecurities(China)Co.Ltd. | ManagingDirector | 1January2021 | Yes | |
WangMancang | FinanceDepartmentofSchoolofEconomics&ManagementNorthwestUniversity | Teacher | 1October1996 | Yes | |
Xi’anGovernment | Consultant | 1October2015 |
Decision-makingAdvisoryCommitteeofXi’anGovernment | Financegroupleader | 1April2017 | |||
ShaanxiSecuritiesResearchAssociation | President | 1October2017 | |||
Chang'anInternationalTrustCo.,Ltd. | IndependentDirector | 1July2018 | |||
ShaanxiConstructionMachineryCo.,Ltd. | IndependentDirector | 16November2018 | |||
Xi’anFocuslightTechnologyCo.,Ltd. | IndependentDirector | 1October2018 | |||
XingMin | ChinaInternalCombustionEngineIndustryAssociation | StandingViceChairmanandSecretary-general | 1August2008 | Yes | |
TianjinUniversity | Full-timeprofessor | 1June2019 | April2021 | ||
ZYNPCorporation | IndependentDirector | 29January2016 | 21May2021 | ||
ZhongjianTechnologyCo.,Ltd | IndependentDirector | 20June2017 | |||
JiangsuYunyiElectronicCo.,Ltd. | IndependentDirector | 15July2019 | |||
WeifuHigh-TechnologyGroupCo.,Ltd. | IndependentDirector | 20May2021 | |||
ZhejiangXinchaiCo.,Ltd. | IndependentDirector | 6December2019 | |||
ActBlueCo.,Ltd. | Director | 22November2021 | |||
ZhangYan | JiangsuUniversityofTechnology | Associateprofessor | 1August2008 | Yes | |
JiangsuChanghaiCompositeMaterialsCo.,Ltd. | IndependentDirector | 16February2016 | |||
S-EnjoyServiceGroupCo.,Limited | Independentnon-executivedirector | 20October2018 | |||
WuxiSAHATElectricTechnologyCo.,Ltd. | IndependentDirector | 2November2020 | |||
JiangsuTianmuLakeTourismCo.,Ltd. | IndependentDirector | 8February2021 | |||
Notes | None |
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√Notapplicable
3.RemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
In2021,themonthlysalariesofdirectors,supervisorsandseniorexecutivesintheCompanywereinlinewiththestipulationsofrelevantsalarymanagementandgradestandards,andthebenefitsoftheCompanyandassessmentresults.DirectorLinTianandSupervisorsHeJianguangandChenLijiaobtainedsalariesinshareholders'entities.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
ShiXinkun | ChairmanoftheBoard | Male | 58 | Incumbent | 93.46 | No |
ZhangXin | Director,GeneralManager | Male | 56 | Incumbent | 93.46 | No |
LinTian | Director | Male | 59 | Incumbent | 0 | Yes |
XuYi | Director,Vice-generalManager | Male | 58 | Incumbent | 82.19 | No |
JiangHe | Director,ChiefAccountant | Male | 50 | Incumbent | 81.28 | No |
YangFeng | Director | Male | 50 | Incumbent | 0 | No |
WangMancang | Independentdirector | Male | 59 | Incumbent | 10 | No |
XingMin | Independentdirector | Male | 68 | Incumbent | 10 | No |
ZhangYan | Independentdirector | Female | 52 | Incumbent | 10 | No |
YinLihou | Vice-generalManager | Male | 58 | Incumbent | 80.98 | No |
XieGuozhong | Vice-generalManager | Male | 53 | Incumbent | 81.89 | No |
SunJianzhong | Vice-generalManager | Male | 50 | Incumbent | 81.58 | No |
HeJianjiang | Vice-generalManagerandSecretaryofthe | Male | 43 | Incumbent | 80.87 | No |
Board | ||||||
HeJianguang | ChairmanoftheSupervisoryCommittee | Male | 58 | Incumbent | 0 | Yes |
ChenLijia | Supervisor | Female | 39 | Incumbent | 0 | Yes |
LuZhonggui | Supervisor | Male | 55 | Incumbent | 20.45 | No |
GeJiangli | Supervisor | Female | 52 | Incumbent | 20.20 | No |
LiuYi | Supervisor | Male | 53 | Incumbent | 20.37 | No |
Total | -- | -- | -- | -- | 766.73 | -- |
VIPerformanceofDutybyDirectorsintheReportingPeriod
1.BoardMeetingsConvenedintheReportingPeriod
Meeting | Dateofmeeting | Disclosuredate | Resolution |
The1stExtraordinaryMeetingoftheBoardofDirectorsin2021 | 2021-01-20 | 2021-01-21 | ThemeetingdeliberatedonandapprovedtheObligationsonConductingForwardForeignExchangeSettlement |
The7thMeetingofthe9thBoardofDirectors | 2021-01-29 | -- | ThemeetingdeliberatedonandapprovedtheReportontheWorkoftheGeneralManagerfortheYear2020,theBusinessPolicyObjectivesoftheCompanyfortheYear2021,theResultsofthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2020,theContractonthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2021,andtheProposalonApplicationforBankCreditLine |
The8thMeetingofthe9thBoardofDirectors | 2021-04-13 | 2021-04-15 | ThemeetingdeliberatedonandapprovedtheAnnualReportfor2020andItsSummary,theAnnualWorkReportoftheBoardofDirectorsfor2020,theAnnualSelf-EvaluationReportonInternalControlfor2020,theProposalontheProvisionofReservesforAssetImpairment,theProposalontheProvisionofGuaranteesforBankCreditforSubsidiaries,theProposalonExtendingtheValidityPeriodofResolutionsoftheCompany'sNon-publicOfferingofSharesattheGeneralMeeting,theProposalontheRequestfortheGeneralMeetingtoExtendtheValidityPeriodofResolutionsoftheCompany'sNon-publicOfferingofSharesattheGeneralMeeting,theProposalonAmendingtheArticles |
ofAssociationoftheCompany,theProposalonAmendingtheRulesofProcedureoftheGeneralMeeting,theProposalonAmendingthePolicyofIndependentDirectors,andtheProposalonConveningtheAnnualGeneralMeetingoftheCompanyfor2020. | |||
The9thMeetingofthe9thBoardofDirectors | 2021-04-27 | 2021-04-28 | ThemeetingdeliberatedonandapprovedtheReportfortheFirstQuarterof2021,theProposalonAmendingtheRulesofImplementationoftheAuditCommitteeoftheBoardofDirectors,theProposaltoAmendtheImplementationRulesoftheRemunerationandEvaluationCommittee,theProposalonAmendingtheWorkPolicyoftheSecretaryoftheBoardofDirectors,theProposalonAmendingtheManagementPolicyofInformationDisclosureMatters,theProposalonAmendingtheRegistrationPolicyofInsideInformationInsider,theProposalonAmendingtheManagementPolicyofExternalInformationUsers,theProposalonAmendingtheInternalAuditPolicy,andtheProposalonAmendingtheDecision-makingPolicyofRelatedTransactions. |
The2ndExtraordinaryMeetingoftheBoardofDirectorsin2021 | 2021-05-18 | 2021-05-19 | ThemeetingdeliberatedonandapprovedtheProposalontheProposedOpeningofaSpecialAccountfortheFundsRaisedfromtheNon-publicOfferingofSharesandAuthorizationtoEnterintoaSupervisionAgreementfortheFundsRaised |
The3rdExtraordinaryMeetingoftheBoardofDirectorsin2021 | 2021-06-28 | 2021-06-30 | ThemeetingdeliberatedonandapprovedtheProposalonUsingRaisedFundstoReplacePre-investedProjectFundsandAdvancedIssueExpenses |
The4thExtraordinaryMeetingoftheBoardofDirectorsin2021 | 2021-07-13 | 2021-07-15 | ThemeetingdeliberatedonandapprovedtheProposalonAmendingtheArticlesof<AssociationoftheCompany>,ProposalonAmendingthe<ManagementPolicyofWealthManagementProducts>,ProposalonUsingOwnIdleFundstoPurchaseWealthManagementProducts,ProposalonUsingIdleFundstoPurchaseWealthManagementProducts,andProposalonChangingtheImplementationEntityofSomeInvestmentProjectswithRaisedFunds |
The5thExtraordinaryMeetingoftheBoardofDirectorsin2021 | 2021-07-26 | 2021-07-28 | ThemeetingdeliberatedonandapprovedtheProposalonRelated-PartyTransactionregardingtheUseofIdleRaisedFundsforPurchaseofReturnCertificateofDonghaiSecurities |
The10thMeetingofthe9thBoardofDirectors | 2021-08-16 | 2021-08-18 | ThemeetingdeliberatedonandapprovedtheSemi-annualReportfor2021andItsSummary,ProposalonChangeofAccountingPolicy,ProposalonProvisionofReservesforAssetImpairment,ProposalonWrite-offofCertainAccountsReceivable,SpecialReportontheDepositandUseofRaisedFundsfortheSemi-annualPeriodof2021,ProposalontheRe-appointmentoftheFinancialAuditInstitutionfor2021andItsAuditExpenses,ProposalontheRe-appointmentoftheInternalControlAuditInstitutionfor2021,andProposalonConveningtheFirstExtraordinaryGeneralMeetingofShareholdersfor2021 |
The6thExtraordinaryMeetingoftheBoardofDirectorsin2021 | 2021-10-28 | 2021-10-29 | ThemeetingdeliberatedonandapprovedtheReportoftheThirdQuarterof2021andProposalonParticipatinginthePublicListedTransferof41.5%EquityInterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. |
The7thExtraordinaryMeetingoftheBoardofDirectorsin2021 | 2021-12-13 | 2021-12-14 | ThemeetingdeliberatedonandapprovedtheProposalontheProposedAppointmentofMr.HeJianjiangasDeputyGeneralManageroftheCompany |
2.AttendanceofDirectorsatBoardMeetingsandGeneralMeetings
Attendanceofdirectorsatboardmeetingsandgeneralmeetings | |||||||
Director | Totalnumberofboardmeetingsthedirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingsthedirectorfailedtoattend | Thedirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
ShiXinkun | 11 | 5 | 6 | 0 | 0 | No | 2 |
ZhangXin | 11 | 5 | 6 | 0 | 0 | No | 2 |
LinTian | 11 | 5 | 6 | 0 | 0 | No | 2 |
JiangHe | 11 | 5 | 6 | 0 | 0 | No | 2 |
YangFeng | 11 | 5 | 6 | 0 | 0 | No | 2 |
WangMancang | 11 | 5 | 6 | 0 | 0 | No | 2 |
XingMin | 11 | 4 | 6 | 1 | 0 | No | 2 |
ZhangYan | 11 | 5 | 6 | 0 | 0 | No | 2 |
Explanationofwhyanydirectorfailedtoattendtwoconsecutiveboardmeetings:
N/A
3.ObjectionsRaisedbyDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranydirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
4.OtherInformationaboutthePerformanceofDutybyDirectorsIndicatebytickmarkwhetheranysuggestionsfromdirectorswereadoptedbytheCompany.
√Yes□NoSuggestionsfromdirectorsadoptedornotadoptedbytheCompany:
TheindependentdirectorsoftheCompanyinlinewiththelaw,rules,normativedocumentsandobligationsgivenbytheCompanyoftheCompanylaw,ArticleofAssociationsandIndependentDirectorsWorkRules,comprehensivelyfocusedonthedevelopmentandoperationoftheCompany,activelyattendedthegeneralmeetingofshareholderandmeetingofboardofdirectors,andgivenindependentopinionsforthesignificanteventsoftheCompany,andeffectivelymaintainedtheprofitsoftheCompanyandalltheshareholders.TheCompanyactivelylistenedtothesuggestionsfromtheindependentdirectorsuponthesignificanteventsandadoptedthem.
VIISpecialCommitteesundertheBoardofDirectorsduringtheReportingPeriod
Nameofcommittee | Members | Numberofmeetingsconvened | Dateofmeeting | Contents | Importantcommentsandsuggestions | Otherperformanceofduties | Specificdisputedmatters(ifany) |
AuditCommittee | ZhangYan,WangMancang,LinTian | 3 | 18January2021 | ThemeetingdiscussedandapprovedtheReportonFinancialPre-auditin2020,ReportonAuditPlanArrangementfor2020,andReportonInternalAuditWorkin2020andInternalAuditPlanfor2021 | TheCompany'sfinancialstatementshavebeenpreparedinaccordancewiththenewAccountingStandardsforBusinessEnterprisesandtheprovisionsoftheCompany's |
relevantfinancialpoliciesandpresentedfairly,inallmaterialrespects,thefinancialstatusoftheCompanyasof31December2020andtheoperatingresultsandcashflowsfor2020.TheCompany'sfinancialandaccountingstatementsareauthenticandaccurate. | ||
6April2021 | ThemeetingreviewedandapprovedtheauditedannualfinancialstatementsoftheCompanyfor2020 | TheCompany'sstatementspresentedfairly,inallmaterialrespects,thefinancialstatusoftheCompanyasof31December2020andtheoperatingresultsandcashflowsfor2020.Itwasconsentedthattheyshallbe |
submittedtotheBoardofDirectorsforreviewandapproval | |||||
13August2021 | ThemeetingdeliberatedonandapprovedtheSemi-annualWorkSummaryoftheAuditDepartmentfor2021,ProposalonProvisionofReservesforAssetImpairment,ProposalontheWrite-offofCertainAccountsReceivable,SpecialReportontheDepositandUseofRaisedFundsfortheSemi-annualPeriodof2021,ProposalontheRe-appointmentoftheFinancialAuditInstitutionfor2021andItsAuditExpenses,andProposalontheRe-appointmentoftheInternalControlAuditInstitutionfor2021 | ItwasconsentedthatboththeproposalsshallbesubmittedtotheBoardofDirectorsfordiscussion | |||
StrategyCommittee | ShiXinkun,XingMin, | 1 | 29January2021 | ThemeetingdeliberatedonandapprovedtheOperationPolicy | Itwasconsentedthatboththeproposals |
YangFeng | andObjectivesfor2021 | shallbesubmittedtotheBoardofDirectorsfordiscussion | |||
RemunerationandEvaluationCommittee | XingMin,WangMancang,ShiXinkun | 1 | 20January2021 | ThemeetingdeliberatedonandapprovedtheEncashmentofAppraisaloftheSeniorManagementin2020andAppraisalContractoftheSeniorManagementfor2021 | ItwasconsentedthatboththeproposalsshallbesubmittedtotheBoardofDirectorsfordiscussion |
VIIIPerformanceofDutybytheSupervisoryCommittee
IndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.IXEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end | 2240 |
Numberofin-serviceemployeesofmajorsubsidiariesattheperiod-end | 524 |
Totalnumberofin-serviceemployeesattheperiod-end | 2764 |
TotalnumberofpaidemployeesintheReportingPeriod | 2764 |
NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
Functions | |
Function | Employees |
Production | 1845 |
Sales | 205 |
Technical | 362 |
Financial | 37 |
Administrative | 294 |
Other | 21 |
Total | 2764 |
Educationalbackgrounds | |
Educationalbackground | Employees |
Juniorhighschoolgraduatesandbelow | 1198 |
Highschoolgraduates | 776 |
Collegegraduatesandtechnicalsecondaryschoolgraduates | 508 |
Bachelors | 263 |
Mastersandabove | 19 |
Total | 2764 |
2.EmployeeRemunerationPolicyTheCompanyalwaysadheredtotheprincipleoftiltingtheremunerationincentivemechanismtowardsexcellenttalents,soastodisplaytherolesofvariousprofessionaltechnicians,managementstaffsandskilledbackbones.Besides,itadheredtotheprincipleofincreasingtheemployee’sincomeintegratedwithincreasinglaborproductionefficiencyandproduction&operationefficiency,soastoperfectthesalarystructureandfurtherincreaseemployees’incomesteadily.
3.EmployeeTrainingPlansTheCompanyestablishedtheManagementRulesontheEducation&TrainingforEmployees,aimingtoenhanceemployees’qualityandtryitsbesttocultivateateamoffaithfulandhighlyprofessionaltalents.Besides,itinnovatedthetrainingmechanism,optimizedthetrainingenvironment,andreinforcedtoencourageemployeestoattendvarioustraining,soastoinspiretheemployees’potentialtothemaximumextentandfurtherpromotethesustainabledevelopmentoftheCompany.
4.LaborOutsourcing
□Applicable√NotapplicableXProfitDistributions(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,wasformulated,executedorrevisedintheReportingPeriod:
√Applicable□NotapplicableInArticlesofAssociation,whichhadconfirmedthespecificprofitsdistributionandclearedouttheconditions,standardsandproportionofthecashbonus,stipulatedthedecision-makingprogressoftheformulationand
alternationoftheprofitsdistributionpoliciesandthechaptersaswellastheregulationsfullyensuretheopportunitiesforthemediumandsmallshareholderstoexertthefunctionsandtoprovideadvicesaswellasappeals.Thecashbonusofrecent3yearsoftheCompanymetwiththeregulationsoftheArticlesofAssociationandduringthedecision-makingprocessoftheprofitsdistributionproposal,theIndependentDirectorsstatedtheindependentadvicesandfullyrespectedtheadvicesfromthemediumandsmallshareholders.TheprofitsdistributionpreplanandtheturningcapitalreserveintosharecapitalpreplanoftheCompanywerebothmetwiththerelevantregulationsoftheArticlesofAssociationandsoon.
Specialstatementaboutthecashdividendpolicy | |
IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
Specificandcleardividendstandardandratio | Yes |
Completedecision-makingprocedureandmechanism | Yes |
Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | N/A |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposaldespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletoshareholdersarepositive.
□Applicable√NotapplicableFinaldividendplanfortheReportingPeriod:
√Applicable□Notapplicable
Bonussharesforevery10shares(share) | 0 |
Dividendforevery10shares(RMB)(taxinclusive) | 0.26 |
Additionalsharestobeconvertedfromcapitalreserveforevery10shares(share) | 0 |
Totalsharesasthebasisfortheprofitdistributionproposal(share) | 705,692,507 |
Cashdividends(RMB)(taxinclusive) | 18,348,005.18 |
Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 0 |
Totalcashdividends(includingthoseinotherforms)(RMB) | 18,348,005.18 |
Distributableprofit(RMB) | 756,037,052.58 |
Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100% |
Cashdividendpolicy | |
Other | |
Particularsaboutthedividendplan | |
TheBoardhasapprovedafinaldividendplanasfollows:basedonthetotalsharecapitaloftheCompanyat31December2021,acashdividendofRMB0.26(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves. |
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIFormulationandImplementationofInternalControlSystemduringtheReportingPeriod
1.InternalControlFormulationandImplementationDuringtheReportingPeriod,theCompanystrictlycompliedwithnationallawsandregulationsandrelevantregulationssuchastheBasicCodeforInternalControlofEnterprisesandtheGuidelinesforApplicationofEnterpriseInternalControl,aswellastheprovisionsandrequirementsoftheCompany'sinternalcontrolstandards,andoptimizedimportantbusinessprocessesandimprovedandperfectedtheinternalcontrolsystemthroughcontinuoussupervisionandeffectiveevaluationoftheoperationoftheCompany'sinternalcontrol,soastoadapttothechangingexternalenvironmentandinternalmanagementrequirementsandimprovetheefficiencyoftheCompany'soperationandmanagement.Bydoingso,theCompanyeffectivelypreventedrisksinoperationandmanagement,andpromotedtheachievementofinternalcontrolobjectives.TheCompany'sinternalcontrolsystemcancoverthemajoraspectsoftheCompany'soperationandmanagement,andtheinternalcontroldesignissoundandreasonable,withnomaterialomissions.
2.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
XIIIManagementofSubsidiariesbytheCompanyduringtheReportingPeriod
Subsidiary | Integrationplan | Progressonintegration | Problemsfoundinintegration | Solutionstaken | Solutionprogress | Subsequentsolution |
N/A | N/A | N/A | N/A | N/A | N/A | N/A |
XIVSelf-EvaluationReportorIndependentAuditor’sReportonInternalControl
1.InternalControlSelf-EvaluationReport
Disclosuredateoftheinternalcontrolself-evaluationreport | 13April2022 |
Indextothedisclosedinternalcontrolself-evaluationreport | 2022-019 |
Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 100.00% |
Evaluatedentities’combined | 100.00% |
operatingrevenueas%ofconsolidatedoperatingrevenue | ||
Identificationstandardsforinternalcontrolweaknesses | ||
Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting |
Naturestandard | TheCompanyclassifiedthedefectsasseriousdefect,importantdefectandgeneraldefectaccordingtotheinfluencedegreefromtheinternalcontrol:(1)Seriousdefect:referstooneormultiplegroupswithcontroldefectwhichmayleadtheenterpriseseriouslydeviatesthecontroltarget;(2)Importantdefect:referstooneormultiplegroupswithcontroldefectwiththeseverityandtheeconomicresultslowerthanthegreatdefectbutmaystillleadtheenterpriseseriouslydeviatesthecontroltarget;(3)Generaldefect:referstootherdefectexceptforthegreatdefectandsignificantdefect.Naturestandards:defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)thedefectinvolveswiththemalpracticeoftheDirectors,SupervisorsandSeniorExecutives;2)revisedthedisclosedfinancialreport;3)CPAsdiscoveredthegreatmisstatementamongthecurrentfinancialstatementwhilewhichcouldnotbefoundduringtheoperatingprocessoftheinternalcontrol;4)thesupervisionfromtheAuditCommitteeandtheinternalauditinstitutionoftheenterprisewasinvalid. | Defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)Seriouslyviolatedthenationallawsandadministrativeregulationsandthenormativedocuments;2)“threesignificantonegreat”eventhadnotbeenthroughthecollectivedecision-makingprocess;3)thesignificanteventsinvolvedwiththeproductionandoperationoftheCompanylackedofsystematiccontrolortheinstitutionalsystemwasinvalid;4)theinternalcontroloftheinformationdisclosurewasinvalid,whichledtheCompanybeopencondemnedbythesupervisiondepartment;5)theseriousdefectfromtheassessmentresultsoftheinternalcontrolhadnotbeenrevised. |
Quantitativestandard | Quantitativestandards:Thequantitativestandardsofrecognizingthesignificantdegreeofthemisstatement(includingthefalsenegatives)oftheconsolidatedfinancialreportoftheCompanybasedonthedatafromthe2020consolidatedstatementswasas:Seriousdefect:misstatement≥5%oftheannualprofits | Refertothequantitativecriteriaoftheinternalcontroldefectofthefinancialreport,torecognizethequantitativecriteriaofthesignificantdegreeoftheinternalcontroldefectofthenon-financialreportoftheCompanyas:Seriousdefect:possiblycauseddirectlylosses≥0.1%ofthenet |
Importantdefect:2.5%oftheannualprofits≤misstatement<5%oftheannualprofitsGeneraldefect<2.5%oftheannualprofits | assetsImportantdefect:0.05%ofthenetassets≤possiblycauseddirectlylosses<0.1%ofthenetassetsGeneraldefect:possiblycauseddirectlylosses<0.05%ofthenetassets | |
Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 |
2.IndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
WebelievedthatChangchaiCompany,LimitedmaintainedeffectiveinternalcontrolofthefinancialreportinsignificantaspectsaccordingtotheBasicNormsofInternalControlandrelevantregulationson31December2021. | |
Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
Disclosuredate | 13April2022 |
Indextosuchreportdisclosed | SGW[2022]ENo.1139 |
Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□No
XVRemediationofProblemsIdentifiedbySelf-inspectionintheSpecialActionontheGovernanceofListedCompaniesAccordingtothedeploymentofChinaSecuritiesRegulatoryCommission,theCompanyorganizedaself-inspectionofthespecialactionofgovernanceoflistedcompanies,inwhichitwasidentifiedthat:RegardingtheBoardofDirectors,theSupervisoryCommittee,andthegeneralmeetingoftheCompany,thetermofofficeoftheEighthBoardofDirectorsexpiredon17October2019withoutre-election,andthere-electionwascompletedon16April2020.
PartVEnvironmentalandSocialResponsibilityIMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoAdministrativepunishmentsreceivedintheReportingPeriodduetoenvironmentalissues:
Companyorsubsidiary | Reasonforpunishment | Violation | Punishment | ImpactontheCompany | RectificationmeasuresoftheCompany |
N/A | N/A | N/A | N/A | N/A | N/A |
ActionstakenduringtheReportingPeriodtoreducecarbonemissionsandtheimpact:
√Applicable□NotapplicableSeethe2021SocialResponsibilityReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated13April2022.Reasonsfornotdisclosingotherenvironment-relatedinformation:
N/A
IISocialResponsibilitySeethe2021SocialResponsibilityReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated13April2022.IIIEffortsinPovertyAlleviationandRuralRevitalizationTheFifthPlenumofthe17thCPCCentralCommitteelisted“consolidatingpovertyalleviationresultandoverallimplementationofruralrevitalizationstrategy”themajortargetsoftheeconomicandsocialdevelopmentinthe“fourteenthfive-yearplan”.TheCompanywillactivelyparticipateinpovertyalleviationworkaccordingtothecalloftheCommunistPartyofChinaandthegovernmentalplanningandmakeitsowncontributionforrealizingcommonprosperityinChina.
PartVISignificantEvents
IFulfillmentofCommitments
1.CommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
√Applicable□Notapplicable
Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutshareholdingreduction | 1.ThecompanyanditscontrolledrelatedpartieshavenotreducedtheirholdingsofsharesofChangchaiCompanyfromthesixmonthspriortotheannouncementofthedecisionoftheBoardofDirectorsofChangchaiCompany,Limited("ChangchaiCompany")concerningtheproposaltoconsiderthenon-publicofferingofsharestothedateofissuanceofthisLetterofCommitment.2.ThecompanyanditscontrolledrelatedpartieshavenoplantoreducetheirholdingsofsharesofChangchaiCompanyfromthedateofissuanceofthisLetterofCommitmenttosixmonthsafterthecompletionofthisissuance. | 29September2020 | 10October2019-30June2022 | Ongoing |
ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.Thecompany'sfundsforsubscribingforthesharesprivatelyofferedbyChangchaiCompany,Limited(ChangchaiCompany)arethecompany'sownfundsorfundsraised | 29September | 21September2020-21 | Expired |
bythecompanyinlegalforms.Thesourcesofthefundsarelegalandthecompanyhasfullandeffectivedisposalrights.Thereisnopublicoffering,proxyholding,structuredarrangementordirectorindirectuseoffundsofChangchaiCompanyanditsaffiliatesforthissubscription.ThereisnoviolationoftherelevantprovisionsoftheDetailedImplementingRulesfortheNon-publicOfferingofStocksofListedCompaniesortheMeasuresfortheAdministrationoftheOfferingandUnderwritingofSecurities.2.ThecompanyisresponsiblefortheauthenticityoftheforegoingcommitmentsandguaranteestobearthelossescausedtoChangchaiCompanyduetothebreachoftheforegoingcommitments. | 2020 | September2021 | |||
ChangzhouInvestmentGroupCo.,Ltd. | Aboutsharetradingrestriction | ItwillnottransferthesharesithasobtainedintheprivateplacementofChangchaiwithin36monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5July2024 | Ongoing |
ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.ItundertakesnottointerfereintheCompany'soperationandmanagementactivitiesbeyonditsauthorityandnottoencroachontheCompany'sinterests;2.Itundertakesnottotransferbenefitstootherentitiesorindividualsfreeofchargeoronunfairterms,nortoimpairtheinterestsoftheCompanybyanyothermeans;3.AftertheissuanceofthisLetterofCommitmentandbeforethecompletionoftheCompany's | 11April2020 | 11April2020-31December9999 | Ongoing |
non-publicofferingofshares,iftheChinaSecuritiesRegulatoryCommission(CSRC)makesothernewregulatoryprovisionsonthereturnfillingmeasuresandcommitments,andtheaforesaidcommitmentscannotmeetsuchprovisionsoftheCSRC,itundertakestoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC;4.ItundertakestoeffectivelyimplementtheCompany'smeasurestofillthereturnandanycommitmentsmadethereon.IftheCompanybreachessuchcommitmentsandcauseslossestotheCompanyortheinvestors,theCompanyiswillingtocompensatetheCompanyortheinvestorsaccordingtolaw. | |||||
UBSAG,CaitongFundManagementCo.,Ltd.,ChangzhouTrafficConstructionInvestmentDevelopmentGeneralCompany,ChenBeiwen,GuotaiAssetManagementCo.,Ltd.,JiangxiJintouIndustrialDevelopmentCo.,Ltd.,LiXueqin,NanhuaFundCo.,Ltd.,Enjoy(Ningbo)AssetManagementL.P.,NuodeAssetManagementCo.,Ltd.,SunMeichun,MinmetalsSecuritiesCo.,Ltd.,YaoJianquan,ChinaNationalGoldGroupAssetManagementCo.,Ltd.,andZhou | Aboutsharetradingrestriction | I/WeundertakethatI/wewillnottransferthesharesI/wehaveobtainedintheprivateplacementofChangchaiwithin6monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5January2022 | Completed |
Zhiheng | ||||||
Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | Aboutdividends | RewardsPlanforShareholdersinNextThreeYears(2020-2022)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | 8May2020 | Year2020-2022 | Ongoing |
Fulfilledontimeornot | Yes | |||||
Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A |
2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√Notapplicable
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableDuringthereportingperiodofthecompany,therewasnononoperatingoccupationoffundsbythecontrollingshareholdersandotherrelatedpartiesofthelistedcompany.IIIIrregularitiesintheProvisionofGuarantees
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
IVExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheLatestPeriod
□Applicable√Notapplicable
VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandCorrectionofMaterialAccountingErrors
√Applicable□Notapplicable
Changestotheaccountingpoliciesandwhy | Approvalprocess |
TheMinistryofFinanceissuedtheAccountingStandardsforBusinessEnterprisesNo.21-Leases(Revised)in2018,requiringthatenterpriseslistedbothdomesticallyandabroadandoverseaslistedenterprisespreparingfinancialstatementsinaccordancewiththeInternationalFinancialReportingStandardsortheAccountingStandardsforBusinessEnterprisesshallimplementitsince1January2019andthatotherscarryitoutsince1January2021. | On16August2021,the10thMeetingofthe9thBoardofDirectorsandthe10thMeetingofthe9thSupervisoryCommitteewereheldbytheCompanyonwhichtheProposalonChangesofAccountingPolicieswasapprovedandtheCompanywasallowedtoimplementthenewstandardsgoverningleasessince1January2021. |
VIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIIEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
Nameofthedomesticindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 60 |
HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 20 |
Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignatureson | WangWenkai,QinZhijun |
theauditor’sreport | |
HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | OneyearforWangWenkai,oneyearforQinZhijun |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
√Applicable□NotapplicableInthisyear,theCompanyretainedGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)astheauditinstitutionforitsinternalcontrolattheauditfeesofRMB120,000
IXPossibilityofDelistingafterDisclosureofthisReport
□Applicable√NotapplicableXInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIMajorLegalMatters
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIICreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
√Applicable□NotapplicableThedefactocontrolleroftheCompanyisSASACofChangzhouPeople’sGovernmentandthecontrollingshareholderofitisChangzhouInvestmentGroupCo.,Ltd.Thereisnosuchcasethatthecontrollingshareholderfailstoperformanylegallyeffectivejudgmentofcourtsortopayoffmatureddebtswithalargeamount.XIVMajorRelated-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□NotapplicableTheProposalonUsingIdleFundstoPurchaseWealthManagementProductswasdeliberatedandapprovedattheFourthInterimMeetingoftheBoardofDirectorsin2021andtheSecondInterimMeetingoftheBoardofSupervisorsin2021heldbytheCompanyon13July2021,allowingtheCompanyanditswholly-ownedsubsidiariestousenomorethanRMB350millionofidleraisedfundstopurchasewealthmanagementproductsforcashmanagementonthepremisethattheinvestmentprojectswithraisedfundsarecarriedoutnormallyandtheuseofraisedfundsisnotaffected.On27July2021,theCompanyenteredintoasubscriptionagreementwithDonghaiSecuritiesCo.,Ltd.fortheproduct"DonghaiSecuritiesLongGainReturnCertificateJuneTypeCustomizedIssueNo.13".ThesubscriptionamountisRMB50million,andthesourceoffundsisidleraisedfunds.Thereturncertificatematuredon25January2022,withatotalofRMB50,949,300inprincipalandreturnreceived.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed
Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
AnnouncementonProgressofUsingIdleFundstoPurchase | 28July2021 | www.cninfo.com.cn |
XVMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
Unit:RMB'0,000
DonghaiSecuritiesReturnCertificateandRelated-partyTransactionsGuaranteesprovidedbytheCompanyforexternalparties(exclusiveofthoseforsubsidiaries)
GuaranteesprovidedbytheCompanyforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
GuaranteesprovidedbytheCompanyastheparentforitssubsidiaries | ||||||||
Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
ChangzhouChangchai | 15April2021 | 2,000 | 7May2021 | 2,000 | Jointliability | 1year | No | No |
HorizonAgriculturalEquipmentCo.,Ltd. | ||||||||
TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 2,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 2,000 | |||||
TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,000 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 500 | |||||
Guaranteesbetweensubsidiaries | ||||||||
Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||
TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 2,000 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 2,000 | |||||
TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,000 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 500 | |||||
Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.16% | |||||||
Ofwhich: | ||||||||
Balanceofguaranteesprovidedforshareholders,thedefactocontrollerandtheirrelatedparties(D) | 0 | |||||||
Balanceofdebtguaranteesprovideddirectlyorindirectlyforentitieswithanover70%debt/assetratio(E) | 500 | |||||||
Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||||||
Totalofthethreeamountsabove(D+E+F) | 500 | |||||||
Possibilityofhavingtoexecutejointliabilityonoutstandingguarantees(ifany) | N/A |
Irregularitiesintheprovisionofguaranteestoexternalparties(ifany) | N/A |
3.CashEntrustedforWealthManagement
(1)CashEntrustedforWealthManagement
√Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
Specifictype | Capitalresources | Amountincurred | Unduebalance | Unrecoveredoverdueamount | Unrecoveredoverdueamountwithprovisionforimpairment |
Brokerfinancialproducts | Self-funded | 980 | 0 | 0 | 0 |
Bankfinancialproducts | Self-funded | 2,300 | 2,000 | 0 | 0 |
Brokerfinancialproducts | Raised-funded | 5,000 | 5,000 | 0 | 0 |
Bankfinancialproducts | Raised-funded | 41,000 | 21,000 | 0 | 0 |
Total | 49,280 | 28,000 | 0 | 0 |
Detailsofhigh-riskentrustedfinancialmanagementwithsignificantsingleamountorlowsecurityandpoorliquidity
□Applicable√NotapplicableTheprincipalofentrustedfinancialmanagementisexpectedtobeunabletoberecoveredorthereareothersituationsthatmayleadtoimpairment
□Applicable√Notapplicable
(2)EntrustedLoans
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XVIOtherSignificantEvents
√Applicable□Notapplicable
1.Accomplishmentofnon-publicofferingofsharesOn17December2020,theCompanyreceivedtheReplyconcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCompany,Limited(ZJXK[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.TheCompany'soffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.TheissuingpricewasRMB4.40pershare,totalamountraisedwasRMB634,999,936.40,andthenetamountactuallyraisedwasRMB620,665,733.97afterdeductingvariousissuanceexpenses.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.ExceptforthesharessubscribedbytheInvestmentGroup,therestrictionhasbeenliftedon5January2022.Fordetails,pleaserefertotheReportonNon-publicOfferingbyChangchaiCompany,LimitedandListingBulletindisclosedbytheCompanyonwww.cninfo.com.cnon1July2021.
2.ParticipatinginthePublicListedTransferof41.5%EquityInterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.TheSixthInterimMeetingoftheBoardofDirectorsin2021heldbytheCompanyon28October2021deliberatedonandapprovedtheProposalonParticipatinginthePublicListedTransferof41.5%EquityInterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,authorizingtheManagementoftheCompanytoparticipateinthebiddingofthepubliclistedtransferbyJiangsuUniversityofScienceandTechnologyAssetsManagementCo.,Ltd.(hereinafterreferredtoas"ScienceUniversityAssets")ofits41.5%equityinterestinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.(hereinafterreferredtoas"ZhenjiangSiyang").On12January2022,ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.issuedtheConfirmationofTransactionontheTransferof41.5%EquityInterest(CorrespondingtoCapitalContributionofRMB830,000).TheCompanywonthe41.5%equityinterestinZhenjiangSiyangatapriceofRMB33,520,800.00.On23February2022,theCompanysignedtheContractonTransferofState-ownedPropertyRightswithScienceUniversityAssets.On9March2022,ZhenjiangSiyanghascompletedtherelevantregistrationalterationformalitieswiththecompetentindustrialandcommercialadministration.
XVIISignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
1.Restrictedshares | 0 | 0.00% | 144,318,181 | 144,318,181 | 144,318,181 | 20.45% | |||
1.1Sharesheldbygovernment | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
1.2Sharesheldbystate-ownedlegalpersons | 0 | 0.00% | 72,045,453 | 72,045,453 | 72,045,453 | 10.21% | |||
1.3Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 68,863,638 | 68,863,638 | 68,863,638 | 9.76% | |||
Amongwhich:Sharesheldbydomesticlegalpersons | 0 | 0.00% | 48,818,178 | 48,818,178 | 48,818,178 | 6.92% | |||
Sharesheldbydomesticnaturalpersons | 0 | 0.00% | 20,045,460 | 20,045,460 | 20,045,460 | 2.84% | |||
1.4Sharesheldbyforeigninvestors | 0 | 0.00% | 3,409,090 | 3,409,090 | 3,409,090 | 0.48% | |||
Amongwhich:Sharesheldbyforeignlegalpersons | 0 | 0.00% | 3,409,090 | 3,409,090 | 3,409,090 | 0.48% | |||
Sharesheldbyforeignnatural | 0 | 0.00% | 0 | 0 | 0 | 0.00% |
persons | |||||||
2.Unrestrictedshares | 561,374,326 | 100.00% | 0 | 0 | 561,374,326 | 79.55% | |
2.1RMB-denominatedordinaryshares | 411,374,326 | 73.28% | 0 | 0 | 411,374,326 | 58.29% | |
2.2Domesticallylistedforeignshares | 150,000,000 | 26.72% | 0 | 0 | 150,000,000 | 21.26% | |
2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
2.4Other | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
3.Totalshares | 561,374,326 | 100.00% | 144,318,181 | 144,318,181 | 705,692,507 | 100.00% |
Reasonsforthesharechanges:
√Applicable□NotapplicableOn17December2020,theCompanyreceivedtheReplyconcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCompany,Limited(ZJXK[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.TheCompany'soffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.Fordetails,pleaserefertotheReportonNon-publicOfferingbyChangchaiCompany,LimitedandListingBulletindisclosedbytheCompanyonwww.cninfo.com.cnon1July2021.Approvalofsharechanges:
√Applicable□NotapplicableOn17December2020,theCompanyreceivedtheReplyconcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCompany,Limited(ZJXK[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.TheCompany'soffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.Transferofshareownership:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
√Applicable□NotapplicableDuringtheReportingPeriod,theCompanycompletedtheprivateplacementofstocks.AndthesharecapitaloftheCompanychangedinto705,692,507sharesfrom561,374,326shares.Basedontheweightedaveragesharecapital,on31December2021,thebasicearningspersharewillbeRMB0.1657pershare,thedilutedearningspersharewillbeRMB0.1657pershare,andthenetassetspersharewillbeRMB4.3610pershare.OtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
√Applicable□Notapplicable
Unit:share
Nameoftheshareholders | Restrictedsharesamountattheperiod-begin | Restrictedsharesincreasedoftheperiod | Restrictedsharesrelievedoftheperiod | Restrictedsharesamountattheperiod-end | Restrictedreasons | Restrictedsharesrelieveddate |
ChangzhouInvestmentGroupCo.,Ltd. | 0 | 56,818,181 | 0 | 56,818,181 | Additionalissuanceof56,818,181sharesthroughtheprivateplacementofshares | 2024-7-5 |
UBSAG | 0 | 3,409,090 | 0 | 3,409,090 | Additionalissuanceof3,409,090sharesthroughtheprivateplacementofshares | 2022-1-5 |
CaitongFundManagementCo.,Ltd. | 0 | 7,909,090 | 0 | 7,909,090 | Additionalissuanceof7,909,090sharesthroughtheprivateplacementofshares | 2022-1-5 |
JiangxiJintouIndustrialDevelopmentCo.,Ltd. | 0 | 4,545,454 | 0 | 4,545,454 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
GuotaiAssetManagementCo.,Ltd. | 0 | 8,181,818 | 0 | 8,181,818 | Additionalissuanceof8,181,818sharesthroughtheprivateplacementofshares | 2022-1-5 |
Enjoy(Ningbo)AssetManagementL.P. | 0 | 6,818,181 | 0 | 6,818,181 | Additionalissuanceof6,818,181sharesthroughtheprivateplacementofshares | 2022-1-5 |
ZhouZhiheng | 0 | 3,409,090 | 0 | 3,409,090 | Additionalissuanceof3,409,090sharesthroughtheprivateplacementofshares | 2022-1-5 |
ChinaNationalGoldGroupAssetManagementCo.,Ltd. | 0 | 10,681,818 | 0 | 10,681,818 | Additionalissuanceof10,681,818sharesthroughtheprivateplacementofshares | 2022-1-5 |
SunMeichun | 0 | 4,545,454 | 0 | 4,545,454 | Additionalissuanceof4,545,454sharesthroughtheprivate | 2022-1-5 |
placementofshares | ||||||
NuodeAssetManagementCo.,Ltd. | 0 | 11,363,636 | 0 | 11,363,636 | Additionalissuanceof11,363,636sharesthroughtheprivateplacementofshares | 2022-1-5 |
MinmetalsSecuritiesCo.,Ltd. | 0 | 4,545,454 | 0 | 4,545,454 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
ChenBeiwen | 0 | 7,272,727 | 0 | 7,272,727 | Additionalissuanceof7,272,727sharesthroughtheprivateplacementofshares | 2022-1-5 |
NanhuaFundCo.,Ltd. | 0 | 5,454,545 | 0 | 5,454,545 | Additionalissuanceof5,454,545sharesthroughtheprivateplacementofshares | 2022-1-5 |
YaoJianquan | 0 | 4,545,454 | 0 | 4,545,454 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
ChangzhouTransportationConstructionInvestmentDevelopmentCo.,Ltd. | 0 | 4,545,454 | 0 | 4,545,454 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
LiXueqin | 0 | 272,735 | 0 | 272,735 | Additionalissuanceof272,735sharesthroughtheprivateplacementofshares | 2022-1-5 |
Total | 0 | 144,318,181 | 0 | 144,318,181 | -- | -- |
II.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
√Applicable□Notapplicable
NameofStockandderivativesecuritiesthereof | Issuedate | issueprice(interest) | Issueamount | Listingdate | Approvedamountforlisting | Terminationdatefortrading | Disclosureindex | Disclosuredate |
Stock | ||||||||
Changchai | 3June2021 | RMB4.40pershare | 144,318,181 | 5July2021 | 144,318,181 | --- | Fordetails,pleaserefertotheReportonNon-publicOfferingbyChangchaiCompany,LimitedandListingBulletindisclosedbytheCompanyonwww.cninfo.com.cn | 1July2021 |
Convertiblecorporatebonds,convertiblecorporatebondsseparatelytradedandcorporatebonds | ||||||||
Otherderivativesecurities |
Notes:
On17December2020,theCompanyreceivedtheReplyconcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCompany,Limited(ZJXK[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.TheCompany'soffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.TheissuingpricewasRMB4.40pershare,totalamountraisedwasRMB634,999,936.40,andthenetamountactuallyraisedwasRMB620,665,733.97afterdeductingvariousissuanceexpenses.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
√Applicable□NotapplicableDuringtheReportingPeriod,theCompanycompletedanon-publicofferingof144,318,181RMBordinaryshares(Ashares),changingthetotalnumberofsharesoftheCompanyfrom561,374,326sharesto705,692,507shares,including561,374,326sharesnotsubjecttotradingmoratoriumand144,318,181sharessubjecttotradingmoratorium.AttheendoftheReportingPeriod,theCompany'stotalassetsincreasedbyRMB907,428,496.81,or22.96%,andequityattributabletoownersoftheCompanyastheparentincreasedbyRMB804,200,671.31,or35.38%,comparedwiththebeginningoftheyear.ThescaleoftheCompany'stotalassetsandequityattributabletoownersoftheCompanyastheparenthasincreased,whichisconducivetofurtherenhancingthecapitalstrength.Atthesametime,theasset-liabilityratiodecreased,whichisconducivetoenhancingtheCompany'sstabilityofcapitalstructureandriskresistance.
3.ExistingStaff-HeldShares
□Applicable√NotapplicableIIIShareholdersandActualController
Unit:share
Numberofordinaryshareholders | 49,947 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 53,650 | Numberofpreferredshareholderswithresumedvotingrights | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport | 0 | |||||||
5%orgreatershareholdersortop10shareholders | ||||||||||||||
Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
Status | Shares | |||||||||||||
ChangzhouInvestmentGroupCo.,Ltd | State-ownedcorporation | 32.26% | 227,663,417 | 56,818,181 | 56,818,181 | 170,845,236 | ||||||||
NuodeFund-HuazhangTiandiMediaInvestmentCo.,Ltd.-NuodeFundPujiangNo.64SingleAssetManagementPlan | Other | 1.61% | 11,363,636 | 11,363,636 | 11,363,636 | 0 | ||||||||
ChinaNationalGoldGroupAssetManagementCo.,Ltd. | State-ownedcorporation | 1.51% | 10,681,818 | 10,681,818 | 10,681,818 | 0 | ||||||||
ChenBeiwen | Domesticindividual | 1.03% | 7,272,727 | 7,272,727 | 7,272,727 | 0 | ||||||||
Enjoy(Ningbo)AssetManagementL.P.-EnjoyYingshanhongNo.9PrivateSecuritiesInvestmentFund | Other | 0.97% | 6,818,181 | 6,818,181 | 6,818,181 | 0 | ||||||||
UBSAG | Foreigncorporation | 0.66% | 4,631,555 | 3,409,090 | 3,409,090 | 1,222,465 | ||||||||
ChangzhouTransportationConstructionInvestmentDevelopmentCo., | State-ownedcorporation | 0.65% | 4,595,454 | 4,545,454 | 4,545,454 | 50,000 |
Ltd. | |||||||||
YaoJianquan | Domesticindividual | 0.64% | 4,545,454 | 4,545,454 | 4,545,454 | 0 | |||
SunMeichun | Domesticindividual | 0.64% | 4,545,454 | 4,545,454 | 4,545,454 | 0 | |||
JiangxiJintouIndustrialDevelopmentCo.,Ltd. | Domesticnon-state-ownedcorporation | 0.64% | 4,545,454 | 4,545,454 | 4,545,454 | 0 | |||
Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue(ifany) | N/A | ||||||||
Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||||||||
Aboveshareholdersinvolvedinentrusting/beingentrustedwithvotingrightsandgivingupvotingrights | N/A | ||||||||
Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | ||||||||
Top10unrestrictedshareholders | |||||||||
Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |||||||
Type | Shares | ||||||||
ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMB-denominatedordinaryshare | 170,845,236 | ||||||
ChenJian | 3,999,400 | RMB-denominatedordinaryshare | 3,999,400 | ||||||
KGIASIALIMITED | 3,101,695 | Domesticallylistedforeignshare | 3,101,695 | ||||||
LiSuinan | 1,548,100 | Domesticallylistedforeignshare | 1,548,100 | ||||||
HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 | ||||||
ChenXiaojing | 1,423,700 | RMB-denominatedordinaryshare | 1,423,700 | ||||||
LuZhang | 1,409,512 | Domesticallylistedforeignshare | 1,409,512 | ||||||
TaoXiaofang | 1,240,000 | RMB-denominatedordinaryshare | 1,240,000 | ||||||
XueHong | 1,240,000 | Domesticallylisted | 1,240,000 |
foreignshare | |||
UBSAG | 1,222,465 | RMB-denominatedordinaryshare | 1,222,465 |
Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholdersChenJianandChenXiaojingrespectivelyheld2,473,000sharesand1,194,000sharesoftheCompanythroughtheircreditaccounts. |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyalocalstate-ownedlegalpersonTypeofthecontrollingshareholder:Legalperson
Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
ChangzhouInvestmentGroupCo.,Ltd | ChenLimin | 20June2002 | 91320400467283980X | Propertyinvestmentandmanagement |
Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | None |
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Localinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:Legalperson
Nameofactualcontroller | Legalrepresentative/personin | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
charge | ||||
State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment | WangWenzhuo | 01411025-1 | Notapplicable | |
OtherlistedcompaniesathomeorabroadcontrolledbytheactualcontrollerintheReportingPeriod | None |
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.NumberofAccumulativePledgedSharesheldbytheCompany’sControllingShareholderortheLargestShareholderaswellasItsActing-in-ConcertPartiesAccountsfor80%ofallsharesoftheCompanyheldbyThem
□Applicable√Notapplicable
5.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
√Applicable□NotapplicableChangzhouInvestmentGroupCo.,Ltd.,thecontrollingshareholderoftheCompany,participatedinthenon-publicofferingofsharesoftheCompanyandwasallotted56,818,181shareswithasubscriptionamountof
RMB249,999,996.40.Theshareswerelistedon5July2021,witha36-monthlock-upperiodandareleasedateof5July2024.IVSpecificImplementationofShareRepurchaseduringtheReportingPeriodProgressonanysharerepurchase
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding
□Applicable√Notapplicable
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
□Applicable√Notapplicable
PartXFinancialStatementsIIndependentAuditor’sReport
Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
Dateofsigningthisreport | 11April2022 |
Nameoftheindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
No.oftheauditor’sreport | SGW[2022]ANo.315 |
Nameofthecertifiedpublicaccountants | WangWenkai,QinZhijun |
TextoftheIndependentAuditor’sReport
TotheShareholdersofChangchaiCompany,Limited,
IOpinionWehaveauditedtheaccompanyingfinancialstatementsofChangchaiCompany,Limited.(togetherwithitsconsolidatedsubsidiariesincludedintheconsolidatedfinancialstatements,the“Company”),whichcomprisetheparent’sandconsolidatedbalancesheetsasat31December2021,theparent’sandconsolidatedincomestatements,theparent’sandconsolidatedcashflowstatements,theparent’sandconsolidatedstatementsofchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionofChangchaiCompany,Limited.Asat31December2021andtheconsolidatedandparentbusinessperformanceandcashflowfor2021.IIBasisforOpinionWeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Andkeyauditmatteridentifiedinourauditissummarizedasfollows:
(I)Recognitionofrevenue
1.DescriptionoftheitemFordetailsandanalysisoftheaccountingpoliciesforrevenuerecognition,pleaserefertotheaccountingpoliciesdescribedinnotes3,30,Revenueand5,37,OperatingRevenueandOperatingcoststothefinancialstatements.In2021,theoperatingrevenueofChangchaiStockisRMB2,452,430,500.SincetheoperatingrevenueisoneofkeyperformanceindicatorsoftheCompany,andthereistheinherentriskthatthemanagementmaymanipulatethetimingofrevenuerecognitionforthepurposeofachievingcertaingoalsorexpectations,soweidentifytherevenuerecognitionasakeyaudititem.
2.Responseforaudit
(1)Knowthekeyinternalcontrolrelatedtorevenuerecognition,evaluatewhetheritsdesignandexecutionarevalidornot,andtesttheoperationeffectivenessoftherelatedinternalcontrol.
(2)Interviewthemanagement,knowabouttherecognitionpoliciesregardingrevenueoftheCompany,getandcheckcontractsoragreementsoftheCompanysignedwithcustomers,identifycontracttermsrelatedtotherecognitionofsalesrevenueofproductsandevaluatewhethertherevenuerecognitionoftheCompanymeetstherequirementsofaccountingstandardsforbusinessenterprises.
(3)Applysamplingtestforsalesrevenue,checkthesupportingdocumentsrelatedtorevenuerecognition,checktheprovisionofgoodstransfercontroltothesalescontractandsupportingmanufacturersrecipientsandconfirmthereceivingofdocumentsandothersupportingdocuments(includingbutnotlimitedtosalescontracts,orders,salesinvoices,invoices,exportcustomsdeclaration).
(4)Checktheoperatingrevenuerecognizedbeforeandafterthebalancesheetdatetothesupportingdocuments,suchasshippingorder,declarationforexportation,andetcbysamplingmethodtoassesswhethertheoperatingrevenueisrecognizedwithinappropriateperiod.
(5)Implementtheconfirmationbydrawingsampletorecognizethebalanceofaccountsreceivableandtheamountofsalesrevenueaccordingtothefeaturesandnaturesofcustomertransaction.(II)Baddebtprovisionforaccountsreceivable
1.DescriptionoftheitemAsdescribedintheaccountingpoliciesdescribedin"3,10,Impairmentoffinancialinstruments"and"5,4,Accountsreceivable"inthenotestothefinancialstatements.OnDecember31,2021,thebookbalanceofaccountsreceivableofChangchaiStockwas554,530,200yuan,theallowanceforbaddebtswas179,321,100yuan,andthebookvaluewas375,209,100yuan,accountingfor7.72%ofthetotalassetsattheendoftheperiod.Becausetheaccountsreceivablebalanceissignificantandtheprovisionfordoubtfulaccountsreceivabletakesmanagement'sjudgmentinconsideration,weidentifieditasakeyaudititem.
2.Responseforaudit
(1)AccessChangchai’sinternalcontrolsystemsofsalesandaccountsreceivablemanagementtounderstandandevaluatethedesignofinternalcontrol,andcarryoutwalk-throughtesttoconfirmtheimplementationofinternalcontrolsystems.
(2)AnalyzeandconfirmthereasonablenessofChangchai’saccountingestimatesofbaddebtprovisionforaccountsreceivable,includingthebasisfordeterminingthecombinationofaccountsreceivable,theexpectedcreditlossrateandthejudgmentofimpairmenttestofaccountsreceivableevaluatedindividually.
(3)Combinedwiththepolicyofaccountsreceivablebaddebtprovision,reviewtodeterminewhetherthebasisofaccountsreceivablecombinationisaccurate,andwhetherthejudgmentofindividualbaddebtprovisionisreasonable;
(4)Accessandchecktheaccountreceivabledetails,agingschedule,statementofprovisionsforbaddebts,andconfirmthereasonablenessofbaddebtprovisionforaccountsreceivablebycombiningwiththerequestofconfirmationofbalanceandsubsequentcollectioninspection;
(5)Fortheaccountsreceivabledividedintoindividualprovisionforbaddebt,refertothecorrespondingcontractandotherinformation,understanditssalesandpaymentcollection,andjudgewhethertheprovisionforbaddebtissufficient;
(6)Sendrequestforconfirmationofbalance,andconfirmtheauthenticityandaccuracyoftheamountofaccountsreceivableonthebalancesheetdatebycombiningwithsubsequentinspectionandotherprocedures.IVOtherInformationTheCompany’smanagement(hereinafterreferredtoas“management”)isresponsiblefortheotherinformation.
TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2020AnnualReportotherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.VResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatementsThemanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,mattersrelatedtogoingconcern(ifapplicable)andusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VIAuditor’sResponsibilitiesforAuditofFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbyCAStodrawusers’attentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatements.Ifsuchdisclosuresareinadequate,weneedtomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheCompanyaudit.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregardingtheplannedscopeandtimingoftheauditandsignificantauditfindings,includinganynoteworthydeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.GongzhengTianyeCertifiedPublicAccountantsChineseCPA:WangWenkai
(SpecialGeneralPartnership)(EngagementPartner)
ChineseCPA:QinZhijunWuxi·China11April2022IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
31December2021
Unit:RMB
Item | 31December2021 | 31December2020 |
Currentassets: | ||
Monetaryassets | 707,966,678.74 | 760,728,222.85 |
Settlementreserve | ||
Interbankloansgranted | ||
Held-for-tradingfinancialassets | 404,053,261.57 | 11,500,272.00 |
Derivativefinancialassets | ||
Notesreceivable | 334,311,236.78 | 600,140,938.05 |
Accountsreceivable | 375,209,126.48 | 397,154,016.49 |
Accountsreceivablefinancing | 497,388,826.02 | |
Prepayments | 8,197,418.39 | 9,357,840.75 |
Premiumsreceivable | ||
Reinsurancereceivables |
Receivablereinsurancecontractreserve | ||
Otherreceivables | 19,515,350.52 | 6,212,062.80 |
Including:Interestreceivable | ||
Dividendsreceivable | ||
Financialassetspurchasedunderresaleagreements | ||
Inventories | 651,083,758.18 | 606,680,340.55 |
Contractassets | ||
Assetsheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 44,060,822.57 | 27,299,362.72 |
Totalcurrentassets | 3,041,786,479.25 | 2,419,073,056.21 |
Non-currentassets: | ||
Loansandadvancestocustomers | ||
Investmentsindebtobligations | 37,898,226.39 | |
Investmentsinotherdebtobligations | ||
Long-termreceivables | ||
Long-termequityinvestments | ||
Investmentsinotherequityinstruments | 779,877,646.53 | 685,137,950.87 |
Othernon-currentfinancialassets | 112,500,000.00 | 98,732,938.63 |
Investmentproperty | 44,597,255.21 | 46,239,326.03 |
Fixedassets | 402,915,521.65 | 454,181,555.68 |
Constructioninprogress | 270,305,690.91 | 66,502,432.41 |
Productivelivingassets | ||
Oilandgasassets | ||
Right-of-useassets | ||
Intangibleassets | 155,154,745.91 | 158,870,631.71 |
Developmentcosts | ||
Goodwill | ||
Long-termprepaidexpense | 110,345.30 | 13,693.20 |
Deferredincometaxassets | 10,693,809.23 | 4,231,873.15 |
Othernon-currentassets | 4,543,240.88 | 19,971,006.56 |
Totalnon-currentassets | 1,818,596,482.01 | 1,533,881,408.24 |
Totalassets | 4,860,382,961.26 | 3,952,954,464.45 |
Currentliabilities: | ||
Short-termborrowings | 73,971,466.65 | 22,000,000.00 |
Borrowingsfromthecentralbank | ||
Interbankloansobtained | ||
Held-for-tradingfinancialliabilities | ||
Derivativefinancialliabilities | ||
Notespayable | 550,774,400.00 | 595,346,000.00 |
Accountspayable | 666,186,668.82 | 612,757,392.46 |
Advancesfromcustomers | 660,965.62 | 661,612.17 |
Contractliabilities | 26,864,081.97 | 35,944,517.15 |
Financialassetssoldunderrepurchaseagreements | ||
Customerdepositsandinterbankdeposits | ||
Payablesforactingtradingofsecurities | ||
Payablesforunderwritingofsecurities | ||
Employeebenefitspayable | 45,385,667.48 | 50,127,161.47 |
Taxespayable | 5,306,378.82 | 2,869,485.41 |
Otherpayables | 148,361,373.29 | 197,545,076.08 |
Including:Interestpayable | ||
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Handlingchargesandcommissionspayable | ||
Reinsurancepayables | ||
Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
Currentportionofnon-currentliabilities | ||
Othercurrentliabilities | 88,938,192.79 | 5,233,947.12 |
Totalcurrentliabilities | 1,606,449,195.44 | 1,522,485,191.86 |
Non-currentliabilities: | ||
Insurancecontractreserve | ||
Long-termborrowings | ||
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables |
Long-termemployeebenefitspayable | ||
Provisions | ||
Deferredincome | 39,615,355.40 | 56,949,737.60 |
Deferredincometaxliabilities | 117,344,161.11 | 80,671,598.82 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 156,959,516.51 | 137,621,336.42 |
Totalliabilities | 1,763,408,711.95 | 1,660,106,528.28 |
Owners’equity: | ||
Sharecapital | 705,692,507.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 640,676,218.40 | 164,328,665.43 |
Less:Treasurystock | ||
Othercomprehensiveincome | 506,011,499.55 | 425,482,758.24 |
Specificreserve | 18,812,950.04 | 18,812,986.55 |
Surplusreserves | 334,144,488.46 | 325,451,531.14 |
Generalreserve | ||
Retainedearnings | 872,212,354.88 | 777,899,079.66 |
TotalequityattributabletoownersoftheCompanyastheparent | 3,077,550,018.33 | 2,273,349,347.02 |
Non-controllinginterests | 19,424,230.98 | 19,498,589.15 |
Totalowners’equity | 3,096,974,249.31 | 2,292,847,936.17 |
Totalliabilitiesandowners’equity | 4,860,382,961.26 | 3,952,954,464.45 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item | 31December2021 | 31December2020 |
Currentassets: | ||
Monetaryassets | 615,184,387.01 | 682,322,659.41 |
Held-for-tradingfinancialassets | 262,004,030.14 | |
Derivativefinancialassets | ||
Notesreceivable | 312,118,296.88 | 581,230,938.05 |
Accountsreceivable | 349,135,255.42 | 317,828,161.25 |
Accountsreceivablefinancing | 497,388,826.02 | |
Prepayments | 2,727,652.23 | 6,592,567.26 |
Otherreceivables | 26,497,081.34 | 24,327,355.36 |
Including:Interestreceivable | ||
Dividendsreceivable | ||
Inventories | 516,588,187.24 | 475,688,026.57 |
Contractassets | ||
Assetsheldforsale | ||
Currentportionofnon-currentassets | ||
Othercurrentassets | 21,292,211.46 | 17,521,203.46 |
Totalcurrentassets | 2,602,935,927.74 | 2,105,510,911.36 |
Non-currentassets: | ||
Investmentsindebtobligations | 37,898,226.39 | |
Investmentsinotherdebtobligations | ||
Long-termreceivables | ||
Long-termequityinvestments | 535,752,730.03 | 375,752,730.03 |
Investmentsinotherequityinstruments | 779,877,646.53 | 685,137,950.87 |
Othernon-currentfinancialassets | 112,500,000.00 | 52,500,000.00 |
Investmentproperty | 44,597,255.21 | 46,239,326.03 |
Fixedassets | 325,034,679.67 | 369,194,314.03 |
Constructioninprogress | 15,557,418.76 | 26,195,189.06 |
Productivelivingassets | ||
Oilandgasassets | ||
Right-of-useassets | ||
Intangibleassets | 66,621,426.26 | 68,088,982.37 |
Developmentcosts | ||
Goodwill | ||
Long-termprepaidexpense | ||
Deferredincometaxassets | 9,613,375.32 | 4,179,544.86 |
Othernon-currentassets | ||
Totalnon-currentassets | 1,927,452,758.17 | 1,627,288,037.25 |
Totalassets | 4,530,388,685.91 | 3,732,798,948.61 |
Currentliabilities: | ||
Short-termborrowings | 58,971,466.65 | 5,000,000.00 |
Held-for-tradingfinancialliabilities | ||
Derivativefinancialliabilities | ||
Notespayable | 544,444,400.00 | 589,534,000.00 |
Accountspayable | 546,689,207.59 | 550,360,564.07 |
Advancesfromcustomers | 660,965.62 | 661,612.17 |
Contractliabilities | 24,730,270.44 | 32,344,514.86 |
Employeebenefitspayable | 37,861,577.50 | 42,455,158.67 |
Taxespayable | 2,955,053.82 | 1,099,861.63 |
Otherpayables | 135,773,368.98 | 184,513,545.20 |
Including:Interestpayable | ||
Dividendspayable | 3,243,179.97 | 3,243,179.97 |
Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
Currentportionofnon-currentliabilities | ||
Othercurrentliabilities | 63,535,570.11 | 2,426,575.40 |
Totalcurrentliabilities | 1,415,621,880.71 | 1,408,395,832.00 |
Non-currentliabilities: | ||
Long-termborrowings | ||
Bondspayable | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Leaseliabilities | ||
Long-termpayables | ||
Long-termemployeebenefitspayable | ||
Provisions | ||
Deferredincome | 39,615,355.40 | 56,949,737.60 |
Deferredincometaxliabilities | 95,034,251.50 | 75,460,192.63 |
Othernon-currentliabilities | ||
Totalnon-currentliabilities | 134,649,606.90 | 132,409,930.23 |
Totalliabilities | 1,550,271,487.61 | 1,540,805,762.23 |
Owners’equity: | ||
Sharecapital | 705,692,507.00 | 561,374,326.00 |
Otherequityinstruments | ||
Including:Preferredshares | ||
Perpetualbonds | ||
Capitalreserves | 659,418,700.67 | 183,071,147.70 |
Less:Treasurystock | ||
Othercomprehensiveincome | 506,011,499.55 | 425,482,758.24 |
Specificreserve | 18,812,950.04 | 18,812,986.55 |
Surplusreserves | 334,144,488.46 | 325,451,531.14 |
Retainedearnings | 756,037,052.58 | 677,800,436.75 |
Totalowners’equity | 2,980,117,198.30 | 2,191,993,186.38 |
Totalliabilitiesandowners’equity | 4,530,388,685.91 | 3,732,798,948.61 |
3.ConsolidatedIncomeStatement
Unit:RMB
Item | 2021 | 2020 |
1.Revenue | 2,452,430,515.60 | 2,296,464,711.24 |
Including:Operatingrevenue | 2,452,430,515.60 | 2,296,464,711.24 |
Interestincome | ||
Insurancepremiumincome | ||
Handlingchargeandcommissionincome | ||
2.Costsandexpenses | 2,399,524,185.52 | 2,267,289,166.18 |
Including:Costofsales | 2,084,671,762.08 | 1,950,573,991.27 |
Interestexpense | ||
Handlingchargeandcommissionexpense | ||
Surrenders | ||
Netinsuranceclaimspaid | ||
Netamountprovidedasinsurancecontractreserve | ||
Expenditureonpolicydividends | ||
Reinsurancepremiumexpense | ||
Taxesandsurcharges | 15,125,948.96 | 12,869,609.15 |
Sellingexpense | 117,242,290.32 | 128,372,278.62 |
Administrativeexpense | 98,890,284.22 | 87,446,195.74 |
R&Dexpense | 82,390,284.14 | 72,258,781.08 |
Financecosts | 1,203,615.80 | 15,768,310.32 |
Including:Interestexpense | 5,907,625.42 | 7,302,086.80 |
Interestincome | 7,921,535.62 | 5,467,634.76 |
Add:Otherincome | 6,633,332.38 | 7,808,732.52 |
Returnoninvestment(“-”forloss) | 9,327,296.95 | 6,545,826.85 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
Exchangegain(“-”forloss) | ||
Netgainonexposurehedges |
(“-”forloss) | ||
Gainonchangesinfairvalue(“-”forloss) | 104,570,498.36 | 20,981,109.00 |
Creditimpairmentloss(“-”forloss) | -52,017,151.82 | 2,378,630.68 |
Assetimpairmentloss(“-”forloss) | -8,676,024.20 | -11,155,930.76 |
Assetdisposalincome(“-”forloss) | 155,515.49 | 229,121.29 |
3.Operatingprofit(“-”forloss) | 112,899,797.24 | 55,963,034.64 |
Add:Non-operatingincome | 4,037,896.76 | 1,047,114.21 |
Less:Non-operatingexpense | 1,637,033.05 | 2,629,797.33 |
4.Profitbeforetax(“-”forloss) | 115,300,660.95 | 54,380,351.52 |
Less:Incometaxexpense | 12,368,786.58 | 2,085,600.33 |
5.Netprofit(“-”fornetloss) | 102,931,874.37 | 52,294,751.19 |
5.1Byoperatingcontinuity | ||
5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 102,931,874.37 | 52,294,751.19 |
5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
5.2Byownership | ||
5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent | 103,006,232.54 | 52,432,443.05 |
5.2.1Netprofitattributabletonon-controllinginterests | -74,358.17 | -137,691.86 |
6.Othercomprehensiveincome,netoftax | 80,528,741.31 | 108,771,351.91 |
AttributabletoownersoftheCompanyastheparent | 80,528,741.31 | 108,771,351.91 |
6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 80,528,741.31 | 108,771,351.91 |
6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 80,528,741.31 | 108,771,351.91 |
6.1.4Changesinthefair |
valuearisingfromchangesinowncreditrisk | ||
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 | 183,460,615.68 | 161,066,103.10 |
AttributabletoownersoftheCompanyastheparent | 183,534,973.85 | 161,203,794.96 |
Attributabletonon-controllinginterests | -74,358.17 | -137,691.86 |
8.Earningspershare | ||
8.1Basicearningspershare | 0.1657 | 0.0934 |
8.2Dilutedearningspershare | 0.1657 | 0.0934 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
Item | 2021 | 2020 |
1.Operatingrevenue | 2,267,232,119.78 | 2,123,200,238.11 |
Less:Costofsales | 1,944,820,462.59 | 1,823,443,404.79 |
Taxesandsurcharges | 11,893,439.38 | 10,349,672.15 |
Sellingexpense | 106,770,873.83 | 110,774,087.06 |
Administrativeexpense | 80,635,862.36 | 70,342,720.73 |
R&Dexpense | 75,021,386.36 | 67,074,041.38 |
Financecosts | -2,350,968.39 | 10,879,173.24 |
Including:Interestexpense | 3,932,469.12 | 5,197,914.71 |
Interestincome | 8,354,523.54 | 6,017,663.50 |
Add:Otherincome | 5,810,480.10 | 5,478,200.87 |
Returnoninvestment(“-”forloss) | 8,352,714.26 | 5,437,925.05 |
Including:Shareofprofitorlossofjointventuresandassociates | ||
Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
Netgainonexposurehedges(“-”forloss) | ||
Gainonchangesinfairvalue(“-”forloss) | 35,754,030.14 | 2,500,000.00 |
Creditimpairmentloss(“-”forloss) | -16,143,004.02 | 2,599,053.83 |
Assetimpairmentloss(“-”forloss) | -3,866,890.01 | -18,384,759.06 |
Assetdisposalincome(“-”forloss) | 6,642.47 | 80,014.23 |
2.Operatingprofit(“-”forloss) | 80,355,036.59 | 28,047,573.68 |
Add:Non-operatingincome | 3,441,588.57 | 542,506.89 |
Less:Non-operatingexpense | 1,086,173.24 | 262,488.62 |
3.Profitbeforetax(“-”forloss) | 82,710,451.92 | 28,327,591.95 |
Less:Incometaxexpense | -4,219,121.23 | -3,554,013.58 |
4.Netprofit(“-”fornetloss) | 86,929,573.15 | 31,881,605.53 |
4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 86,929,573.15 | 31,881,605.53 |
4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
5.Othercomprehensiveincome,netoftax | 80,528,741.31 | 108,771,351.91 |
5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 80,528,741.31 | 108,771,351.91 |
5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossunder |
theequitymethod | ||
5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 80,528,741.31 | 108,771,351.91 |
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 | 167,458,314.46 | 140,652,957.44 |
7.Earningspershare | ||
7.1Basicearningspershare | ||
7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
Unit:RMB
Item | 2021 | 2020 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 1,806,075,487.79 | 2,230,952,492.49 |
Netincreaseincustomerdepositsandinterbankdeposits | ||
Netincreaseinborrowingsfromthecentralbank | ||
Netincreaseinloansfromotherfinancialinstitutions | ||
Premiumsreceivedonoriginalinsurancecontracts | ||
Netproceedsfromreinsurance | ||
Netincreaseindepositsandinvestmentsofpolicyholders | ||
Interest,handlingchargesandcommissionsreceived | ||
Netincreaseininterbankloansobtained | ||
Netincreaseinproceedsfromrepurchasetransactions | ||
Netproceedsfromactingtradingofsecurities | ||
Taxrebates | 50,016,426.49 | 33,693,741.46 |
Cashgeneratedfromotheroperatingactivities | 22,636,726.19 | 16,977,100.96 |
Subtotalofcashgeneratedfromoperatingactivities | 1,878,728,640.47 | 2,281,623,334.91 |
Paymentsforcommoditiesandservices | 1,648,743,526.28 | 1,571,967,433.96 |
Netincreaseinloansandadvancestocustomers | ||
Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
Paymentsforclaimsonoriginalinsurancecontracts | ||
Netincreaseininterbankloansgranted | ||
Interest,handlingchargesandcommissionspaid | ||
Policydividendspaid |
Cashpaidtoandforemployees | 323,020,547.09 | 294,472,502.80 |
Taxespaid | 31,276,348.44 | 39,853,712.33 |
Cashusedinotheroperatingactivities | 142,011,997.96 | 123,533,031.29 |
Subtotalofcashusedinoperatingactivities | 2,145,052,419.77 | 2,029,826,680.38 |
Netcashgeneratedfrom/usedinoperatingactivities | -266,323,779.30 | 251,796,654.53 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | 373,180,033.58 | 557,198,253.76 |
Returnoninvestment | 11,396,891.86 | 6,545,826.85 |
Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 589,226.24 | 275,546.00 |
Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
Cashgeneratedfromotherinvestingactivities | 336,150.00 | |
Subtotalofcashgeneratedfrominvestingactivities | 385,166,151.68 | 564,355,776.61 |
Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 139,772,849.33 | 133,737,262.64 |
Paymentsforinvestments | 709,038,171.10 | 579,733,766.76 |
Netincreaseinpledgedloansgranted | ||
Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
Cashusedinotherinvestingactivities | 1,869,322.91 | 4,141,850.71 |
Subtotalofcashusedininvestingactivities | 850,680,343.34 | 717,612,880.11 |
Netcashgeneratedfrom/usedininvestingactivities | -465,514,191.66 | -153,257,103.50 |
3.Cashflowsfromfinancingactivities: | ||
Capitalcontributionsreceived | 633,873,281.14 | |
Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
Borrowingsraised | 19,000,000.00 | 22,000,000.00 |
Cashgeneratedfromotherfinancingactivities | 58,971,466.65 | |
Subtotalofcashgeneratedfromfinancingactivities | 711,844,747.79 | 22,000,000.00 |
Repaymentofborrowings | 29,000,000.00 | 22,000,000.00 |
Interestanddividendspaid | 1,707,729.02 | 3,232,890.38 |
Including:Dividendspaidby |
subsidiariestonon-controllinginterests | ||
Cashusedinotherfinancingactivities | 14,621,163.63 | 2,500,000.00 |
Subtotalofcashusedinfinancingactivities | 45,328,892.65 | 27,732,890.38 |
Netcashgeneratedfrom/usedinfinancingactivities | 666,515,855.14 | -5,732,890.38 |
4.Effectofforeignexchangerateschangesoncashandcashequivalents | -2,215,203.09 | -8,827,118.35 |
5.Netincreaseincashandcashequivalents | -67,537,318.91 | 83,979,542.30 |
Add:Cashandcashequivalents,beginningoftheperiod | 629,939,540.50 | 545,959,998.20 |
6.Cashandcashequivalents,endoftheperiod | 562,402,221.59 | 629,939,540.50 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
Item | 2021 | 2020 |
1.Cashflowsfromoperatingactivities: | ||
Proceedsfromsaleofcommoditiesandrenderingofservices | 1,721,407,332.48 | 1,963,288,154.66 |
Taxrebates | 39,451,775.67 | 25,903,016.36 |
Cashgeneratedfromotheroperatingactivities | 16,788,453.39 | 9,006,278.01 |
Subtotalofcashgeneratedfromoperatingactivities | 1,777,647,561.54 | 1,998,197,449.03 |
Paymentsforcommoditiesandservices | 1,632,770,616.35 | 1,388,644,147.32 |
Cashpaidtoandforemployees | 267,953,154.75 | 247,717,051.40 |
Taxespaid | 21,295,926.17 | 26,755,852.89 |
Cashusedinotheroperatingactivities | 129,115,999.33 | 110,744,198.57 |
Subtotalofcashusedinoperatingactivities | 2,051,135,696.60 | 1,773,861,250.18 |
Netcashgeneratedfrom/usedinoperatingactivities | -273,488,135.06 | 224,336,198.85 |
2.Cashflowsfrominvestingactivities: | ||
Proceedsfromdisinvestment | 500,487.00 | |
Returnoninvestment | 10,222,037.17 | 5,437,925.05 |
Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 124,954.89 | 183,890.00 |
Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
Cashgeneratedfromotherinvestingactivities | 9,718,669.72 | |
Subtotalofcashgeneratedfrominvestingactivities | 10,346,992.06 | 15,840,971.77 |
Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 5,665,400.94 | 4,071,225.07 |
Paymentsforinvestments | 484,148,226.39 | 154,786,000.00 |
Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
Cashusedinotherinvestingactivities | 1,869,322.91 | 9,000,000.00 |
Subtotalofcashusedininvestingactivities | 491,682,950.24 | 167,857,225.07 |
Netcashgeneratedfrom/usedininvestingactivities | -481,335,958.18 | -152,016,253.30 |
3.Cashflowsfromfinancingactivities: | ||
Capitalcontributionsreceived | 633,873,281.14 | |
Borrowingsraised | 5,000,000.00 | 5,000,000.00 |
Cashgeneratedfromotherfinancingactivities | 58,971,466.65 |
Subtotalofcashgeneratedfromfinancingactivities | 697,844,747.79 | 5,000,000.00 |
Repaymentofborrowings | 10,000,000.00 | 5,000,000.00 |
Interestanddividendspaid | 160,362.10 | 1,027,748.70 |
Cashusedinotherfinancingactivities | 14,621,163.63 | 2,500,000.00 |
Subtotalofcashusedinfinancingactivities | 24,781,525.73 | 8,527,748.70 |
Netcashgeneratedfrom/usedinfinancingactivities | 673,063,222.06 | -3,527,748.70 |
4.Effectofforeignexchangerateschangesoncashandcashequivalents | -1,401,721.22 | -6,995,969.85 |
5.Netincreaseincashandcashequivalents | -83,162,592.40 | 61,796,227.00 |
Add:Cashandcashequivalents,beginningoftheperiod | 559,573,331.81 | 497,777,104.81 |
6.Cashandcashequivalents,endoftheperiod | 476,410,739.41 | 559,573,331.81 |
7.ConsolidatedStatementsofChangesinOwners’Equity2021
Unit:RMB
Item | 2021 | ||||||||||||||
EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
Preferredshares | Perpetualbonds | Other | |||||||||||||
1.Balanceasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 777,899,079.66 | 2,273,349,347.02 | 19,498,589.15 | 2,292,847,936.17 | ||||||
Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
Adjustmentforcorrectionofpreviouserror |
Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||
Otheradjustments | |||||||||||||
2.Balanceasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 777,899,079.66 | 2,273,349,347.02 | 19,498,589.15 | 2,292,847,936.17 | ||||
3.Increase/decreaseintheperiod(“-”fordecrease) | 144,318,181.00 | 476,347,552.97 | 80,528,741.31 | -36.51 | 8,692,957.32 | 94,313,275.22 | 804,200,671.31 | -74,358.17 | 804,126,313.14 | ||||
3.1Totalcomprehensiveincome | 80,528,741.31 | 103,006,232.54 | 183,534,973.85 | -74,358.17 | 183,460,615.68 | ||||||||
3.2Capitalincreasedandreducedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | 620,665,733.97 | |||||||||
3.2.1Ordinarysharesincreasedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | 620,665,733.97 | |||||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
3.2.4Other | |||||||||||||
3.3Profitdistribution | 8,692,957.32 | -8,692,957.32 | |||||||||||
3.3.1Appropriationtosurplusreserves | 8,692,957.32 | -8,692,957.32 | |||||||||||
3.3.2Appropriationtogeneralreserve | |||||||||||||
3.3.3Appropriationtoowners(orshareholders) | |||||||||||||
3.3.4Other |
3.4Transferswithinowners’equity | |||||||||||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
3.4.3Lossoffsetbysurplusreserves | |||||||||||||
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
3.4.6Other | |||||||||||||
3.5Specificreserve | -36.51 | -36.51 | -36.51 | ||||||||||
3.5.1Increaseintheperiod | 4,023,200.24 | 4,023,200.24 | 4,023,200.24 | ||||||||||
3.5.2Usedintheperiod | 4,023,236.75 | 4,023,236.75 | 4,023,236.75 | ||||||||||
3.6Other | |||||||||||||
4.Balanceasattheendoftheperiod | 705,692,507.00 | 640,676,218.40 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 872,212,354.88 | 3,077,550,018.33 | 19,424,230.98 | 3,096,974,249.31 |
2020
Unit:RMB
Item | 2020 | ||
EquityattributabletoownersoftheCompanyastheparent | Non-cont | Total |
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | rollinginterests | owners’equity | |||
Preferredshares | Perpetualbonds | Other | |||||||||||||
1.Balanceasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 317,059,775.00 | 17,560,202.07 | 322,226,700.34 | 726,689,929.10 | 2,109,239,597.94 | 19,636,281.01 | 2,128,875,878.95 | ||||||
Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
Adjustmentforcorrectionofpreviouserror | 1,833.38 | 1,651,336.26 | 1,653,169.64 | 1,653,169.64 | |||||||||||
Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||||
Otheradjustments | |||||||||||||||
2.Balanceasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 317,059,775.00 | 17,560,202.07 | 322,228,533.72 | 728,341,265.36 | 2,110,892,767.58 | 19,636,281.01 | 2,130,529,048.59 |
3.Increase/decreaseintheperiod(“-”fordecrease) | 108,422,983.24 | 1,252,784.48 | 3,222,997.42 | 49,557,814.30 | 162,456,579.44 | -137,691.86 | 162,318,887.58 | |||
3.1Totalcomprehensiveincome | 108,771,351.91 | 52,432,443.05 | 161,203,794.96 | -137,691.86 | 161,066,103.10 | |||||
3.2Capitalincreasedandreducedbyowners | ||||||||||
3.2.1Ordinarysharesincreasedbyowners | ||||||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
3.2.4Other | ||||||||||
3.3Profitdistribution | 3,222,997.42 | -3,222,997.42 | ||||||||
3.3.1Appropriationtosurplusreserves | 3,222,997.42 | -3,222,997.42 | ||||||||
3.3.2Appropriationtogeneralreserve | ||||||||||
3.3.3Appropriationtoowners(orshareholders) | ||||||||||
3.3.4Other | ||||||||||
3.4Transferswithinowners’equity | -348,368.67 | 348,368.67 | ||||||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
3.4.3Lossoffsetbysurplusreserves | |||||||||||||
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
3.4.6Other | -348,368.67 | 348,368.67 | |||||||||||
3.5Specificreserve | 1,252,784.48 | 1,252,784.48 | 1,252,784.48 | ||||||||||
3.5.1Increaseintheperiod | 3,766,291.74 | 3,766,291.74 | 3,766,291.74 | ||||||||||
3.5.2Usedintheperiod | 2,513,507.26 | 2,513,507.26 | 2,513,507.26 | ||||||||||
3.6Other | |||||||||||||
4.Balanceasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 777,899,079.66 | 2,273,349,347.02 | 19,498,589.15 | 2,292,847,936.17 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2021
Unit:RMB
Item | 2021 | |||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
Preferredshares | Perpetualbonds | Other | ||||||||||
1.Balanceasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 677,800,436.75 | 2,191,993,186.38 | |||||
Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
Adjustmentforcorrectionofpreviouserror | ||||||||||||
Otheradjustments | ||||||||||||
2.Balanceasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 677,800,436.75 | 2,191,993,186.38 | |||||
3.Increase/decreaseintheperiod(“-”fordecrease) | 144,318,181.00 | 476,347,552.97 | 80,528,741.31 | -36.51 | 8,692,957.32 | 78,236,615.83 | 788,124,011.92 | |||||
3.1Totalcomprehensiveincome | 80,528,741.31 | 86,929,573.15 | 167,458,314.46 | |||||||||
3.2Capitalincreasedandreducedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 |
3.2.1Ordinarysharesincreasedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | |||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||
3.2.4Other | ||||||||
3.3Profitdistribution | 8,692,957.32 | -8,692,957.32 | ||||||
3.3.1Appropriationtosurplusreserves | 8,692,957.32 | -8,692,957.32 | ||||||
3.3.2Appropriationtoowners(orshareholders) | ||||||||
3.3.3Other | ||||||||
3.4Transferswithinowners’equity | ||||||||
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||
3.4.3Lossoffsetbysurplusreserves | ||||||||
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings |
3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
3.4.6Other | ||||||||||
3.5Specificreserve | -36.51 | -36.51 | ||||||||
3.5.1Increaseintheperiod | 4,023,200.24 | 4,023,200.24 | ||||||||
3.5.2Usedintheperiod | 4,023,236.75 | 4,023,236.75 | ||||||||
3.6Other | ||||||||||
4.Balanceasattheendoftheperiod | 705,692,507.00 | 659,418,700.67 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 756,037,052.58 | 2,980,117,198.30 |
2020
Unit:RMB
Item | 2020 | |||||||||||
Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
Preferredshares | Perpetualbonds | Other | ||||||||||
1.Balanceasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 317,059,775.00 | 17,560,202.07 | 322,226,700.34 | 648,776,959.53 | 2,050,069,110.64 | |||||
Add:Adjustmentforchangeinaccountingpolicy |
Adjustmentforcorrectionofpreviouserror | 1,833.38 | 16,500.44 | 18,333.82 | |||||||
Otheradjustments | ||||||||||
2.Balanceasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 317,059,775.00 | 17,560,202.07 | 322,228,533.72 | 648,793,459.97 | 2,050,087,444.46 | |||
3.Increase/decreaseintheperiod(“-”fordecrease) | 108,422,983.24 | 1,252,784.48 | 3,222,997.42 | 29,006,976.78 | 141,905,741.92 | |||||
3.1Totalcomprehensiveincome | 108,771,351.91 | 31,881,605.53 | 140,652,957.44 | |||||||
3.2Capitalincreasedandreducedbyowners | ||||||||||
3.2.1Ordinarysharesincreasedbyowners | ||||||||||
3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
3.2.4Other | ||||||||||
3.3Profitdistribution | 3,222,997.42 | -3,222,997.42 | ||||||||
3.3.1Appropriationtosurplusreserves | 3,222,997.42 | -3,222,997.42 | ||||||||
3.3.2Appropriationtoowners(orshareholders) | ||||||||||
3.3.3Other | ||||||||||
3.4Transferswithinowners’equity | -348,368.67 | 348,368.67 |
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||||||
3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
3.4.3Lossoffsetbysurplusreserves | ||||||||||
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
3.4.5Othercomprehensiveincometransferredtoretainedearnings | -348,368.67 | 348,368.67 | ||||||||
3.4.6Other | ||||||||||
3.5Specificreserve | 1,252,784.48 | 1,252,784.48 | ||||||||
3.5.1Increaseintheperiod | 3,766,291.74 | 3,766,291.74 | ||||||||
3.5.2Usedintheperiod | 2,513,507.26 | 2,513,507.26 | ||||||||
3.6Other | ||||||||||
4.Balanceasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 677,800,436.75 | 2,191,993,186.38 |
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.ThetotalamountraisedwasRMB634,999,996.40;thenetamountraisedwasRMB620,665,733.97,whichincreasedthecapitalreserve(sharecapitalpremium)byRMB476,347,552.97.Asof31December2021,thetotalsharecapitaloftheCompanywasRMB705,692,507.Theunifiedsocialcreditcodeofthecompany'sbusinesslicenseis91320400134792410W.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’smainbusinessremainedunchangedintheReporting
Period.TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson11April2022.TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand7subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.
IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.ContinuationTheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimations
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriodThefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)Businesscombinationsnotunderthesamecontrol
Abusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatementsTheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthefinancialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationas
participatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjusttheperiod-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthecomparedstatement.Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthecurrentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheGroupclassifiesjointarrangementsintojointoperationsandjointventures.AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.
8.RecognitionStandardforCashandCashEquivalentsIntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessConcerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintotherecordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankofChinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchangesshallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshallbeconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedbythePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamountconvertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currencyamountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbytheforeign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleofcapitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecordedintotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currencynon-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchangegain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothegain/lossofthecurrentperiod.
(2)TranslationofforeigncurrencyTheassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstruments
(1)ClassificationofFinancialInstrumentsTheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:
financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome
(debtinstruments)andfinancialassetsatfairvaluethroughprofitorlossFinancialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①FinancialassetsmeasuredatamortizedcostFinancialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.ForaccountsreceivableexcludingsignificantfinancingandaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,theinitialmeasurementshallbemadeatthecontracttransactionprice.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenrecoveredordisposed,thedifferencebetweenthepriceobtainedandthecarryingvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
②Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)includeaccountsreceivablefinancingandinvestmentinotherdebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueexceptforinterestcalculatedwithactualrates,impairmentlossesorgainsandexchangegainsorlossesshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintothecurrentprofitorloss.
③Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)includeinvestmentinotherequityinstruments,etc.whichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueshallberecordedintoothercomprehensiveincome.Thedividendsobtainedshallberecordedintothecurrentprofitorloss.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintoretainedearnings.
④FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
⑤FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandderivativefinancialliabilitieswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialliabilitiesshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthecarryingvalueandthepaidconsiderationshallberecordedintothecurrentprofitorloss.
⑥FinancialliabilitiesatamortizedcostFinancialliabilitiesatamortizedcostincludeshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayableswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenderecognized,the
differencebetweenthepaidconsiderationandthecarryingvalueofthefinancialliabilitiesshallberecordedintothecurrentprofitorloss.
(3)RecognitionBasisandMeasurementofTransferofFinancialAssetsWheretheCompanyhastransferrednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethetransferredfinancialasset.WheretheCompanydoesnottransferorretainnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itshalldealwithitaccordingtothecircumstancesasfollows,respectively:(1)Ifitgivesupitscontroloverthefinancialasset,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities;(2)Ifitdoesnotgiveupitscontroloverthefinancialasset,itshall,accordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset,recognizetherelatedfinancialassetandrecognizetherelevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueofthetransferredfinancialassetonthederecognitiondate;(2)Thesumofconsiderationreceivedfromthetransferoffinancialassets,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,theentirecarryingvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped,beapportionedaccordingtotheirrespectiverelativefairvalueonthetransferdate,andthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueoftheportionwhoserecognitionhasbeenstopped;(2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstopped,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.
(4)DerecognitionBasisofFinancialLiabilitiesAfinancialliabilityorpartofitcanbederecognizedafteritscurrentobligationhasbeenrelievedinfullorinpart.
(5)RecognitionofFairValueofFinancialAssetsandFinancialLiabilitiesThefairvalueoffinancialinstrumentswithanactivemarketisdeterminedbythequotedpriceintheactivemarket.Forfinancialinstrumentswithoutactivemarket,thefairvalueisdeterminedbyvaluationtechniques.TheCompanyadoptsthevaluationtechniquesapplicabletothecurrentconditionswhicharesupportedbysufficientdataandotherinformationforvaluation,andselectstheinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinassetorliabilitytransactions,withprioritytoobservableinputvalues.Unobservableinputvaluesareusedonlywhenrelevantobservableinputvaluesarenotavailableorpractical.
(6)Impairmentoffinancialinstrument
①ImpairmentmeasurementandaccountinghandlingoffinancialinstrumentBasedonexpectedcreditloss,theCompanyconductsimpairmenthandlingandconfirmscreditimpairmentlossforfinancialassetswhichismeasuredbyamortizedcost,debtinstrumentinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,financialguaranteecontract.Expectedcreditlossreferstoweightedaverageofcreditlossoffinancialinstrumentwhichtakestheriskof
contractbreachoccurrenceastheweight.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,interestincomewascalculatedattheeffectiveinterestratesandontheamortizedcostbyreducingtheprovisionsforassetimpairmentfromthecarryingamount.Fornotesreceivables,accountsreceivables,andfinancingreceivables,whethertherewasasignificantfinancialcomponentornot,theCompanymeasuredthelossreservesbasedontheexpectedcreditlossesfortheentireduration.A.AccountsreceivableFornotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingwithobjectiveevidenceindicatingimpairmentandthosesuitableforindividualevaluation,theCompanycarriesoutimpairmenttestseparatelytoconfirmexpectedcreditlossandprepareprovisionforimpairmentofsingleitems.Fornotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancing,contractassetsandlong-termreceivableswithoutobjectiveevidenceofimpairment,orasinglefinancialassetwithexpectedcreditlossimpossibletobeassessedatareasonablecost,theCompanydividesthenotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingintogroupsaccordingtothecharacteristicsofcreditrisk,andcalculatestheexpectedcreditlossbasedonreceivablegroups.Thebasisforrecognizinggroupsisasfollows:
Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
Group1ofnotesreceivable | Allcommercialbills | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpected |
Group2ofnotesreceivable | Bank’sacceptancebillswithlowcreditrating |
creditlossrateovertheentirelife | ||
Accountsreceivablefinancing | Bank’sacceptancebillswithhighcreditrating | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Accountsreceivable-creditriskcharacteristicsgroup | Accountsreceivableportfoliowithcreditperiod | Preparethecomparativelistbetweenagingofaccountsreceivableandexpectedcreditlossrateovertheentirelifeandcalculatetheexpectedcreditlossbyconsultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation.TheCompanytakesagingascreditriskcharacteristicsgroupsandcalculatestheexpectedcreditlossforaccountsreceivable. |
Accountsreceivable-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Basisforrecognizinggroupsofotherreceivablesisasfollows:
Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
Group1ofotherreceivables | Otherreceivablesexcludingthosefromrelatedparties-aginggroup | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
Group2ofotherreceivables | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
11.AccountsReceivableSee“10.FinancialInstruments”.
12.AccountsReceivableFinancingSee“10.FinancialInstruments”.
13.OtherReceivablesSee“10.FinancialInstruments”.
14.Inventory
(1)CategoryofInventoryInventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumedintheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtherawmaterials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourcedetc.
(2)PricingmethodPurchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthedispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproductsaccordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)DeterminationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionforfallingpriceofinventoryAtthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.Whenalltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingpricereserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,theinventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Ofwhich:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchasthefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproductsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
15.ContractAssetsContractAssetsmeansthattheCompanyisendowedwiththerighttochargetheconsiderationthroughtransferringanycommodityorservicetotheclient,andsuchrightdependsonotherfactorsexceptthepassingoftime.TheCompany’sunconditionalright(onlydependingonthepassingoftime)ofchargingtheconsiderationfromtheclientshallbeseparatelypresentedasreceivables.TherecognitionmethodandaccountingtreatmentmethodoftheestimatedcreditlossofcontractassetsareconsistentwiththatspecifiedinNotesV.11.
16.ContractCosts
(1)CostsfromAcquiringContractIftheincrementalcostresultingfromtheCompany’sacquiringofcontract(namelycostsmerelyresultingfromtheacquiringofcontract)ispredictedtoberetrieved,itshallberecognizedasanassets,amortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Iftheassets’amortizationperioddoesnotexceedoneyear,itshallbeimmediatelyincludedintothecurrentprofitandloss.OtherexpensesresultingfromtheCompany’sacquiringofcontractshallalsobeincludedintothecurrentprofitandlossunlessitisexplicitlybornebytheclient.
(2)CostsfromExecutingContractTheCompany’scostsfromexecutingcontractisnotcoveredbyotherASBEexceptforRevenueStandards,andwhenthefollowingsituationsaremet,suchcostscanberecognizedasanassets:①thecostsaredirectlyrelatedtoacurrentorpredictedcontract;②thecostsincreasetheCompany’sresourcesappliedtofulfillperformanceobligationsinthefuture;③thecostsarepredictedtoberetrieved.Therecognizedassetsshallbeamortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Ifthebookvalueofcontractcostsishigherthanthedifferenceofthefollowingtwoitems,correspondingdepreciationreservesshallbecountedandwithdrawnanditshallberecognizedastheassetsdepreciationloss:①theresidualconsiderationpredictedtobeacquiredbytransferringcommoditiesrelatedtotheassets;②thecostspredictedtooccurduetothetransferofrelatedcommodities.Ifthedifferencebetween①and②ishigherthanthebookvalueofcontractcostsduetoanychangeinvariousfactorscausingdepreciationinpreviousperiods,itshallberestitutedtothewithdrawnassetsdepreciationreservesandincludedinthecurrentprofitandloss.However,thebookvalueofrestitutedcontractcostsshallnotexceedthebookvalueoftheassetsonthedayofrestitutionbasedonthehypothesisthatdepreciationreservesarenotcountedandwithdrawn.
17.AssetsHeldforSaleTheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowingconditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.
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-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefair
valueoftheequitysecuritiesissued.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-term
equityinvestmentisinsufficientforwrittendown,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,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedby
adoptingtheequitymethodformeasurement,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 | Method | Usefullife | Annualdeprecation |
Housingandbuilding | Averagemethodofusefullife | 20-40 | 2.50%-5% |
Machineryequipment | Averagemethodofusefullife | 6-15 | 6.67%-16.67% |
Transportationequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
Otherequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
(3)RecognitionBasis,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;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmake
depreciationinlinewithvaluationvalue.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)PricingMethod,ServiceLife,andImpairmentTest
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.
Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)AmortizationmethodandtermofintangibleassetsAsfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)AccountingPolicesofInternalR&DCostsTheinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.TheCompanycollectsthecostsofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentcostsforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentcostsoftheintangibleassetscanbereliablymeasured.
24.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfair
valuedeductingdisposalchargesorpresentvalueofpredictedcashflow.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.Welfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweenthe
Companyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.DefinedcontributionplansDuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
28.LeaseLiabilitiesOnthecommencementdateoftheleaseterm,theCompanyrecognizesthepresentvalueofoutstandingleasepaymentsasleaseliabilities.Theamountofleasepaymentincludesthefollowingfivecontents:fixedamountandsubstantialfixedamount.Ifthereisleaseincentive,theamountrelatedtoleaseincentivewillbededucted.Variableleasepaymentssubjecttoanindexorratio,whichatthetimeofinitialmeasurementisbasedontheindexorratioofthecommencementdateoftheleaseterm;Theexercisepriceofthepurchaseoptionprovidedthatthelesseeisreasonablycertainthattheoptionwillbeexercised;TheamountpayableforexercisingtheterminationoptionprovidedthattheleasetermreflectsthattheLesseewillexercisetheterminationoption;Theamountexpectedtobepaidbasedontheresidualvalueofthesecurityprovidedbythelessee.Whencalculatingthepresentvalueoftheleasepayment,theleaseembeddedinterestrateisusedasthediscountrate;iftheleaseembeddedinterestratecannotbedetermined,thecompany'sincrementalloaninterestrateisusedasthediscountrate.Thecompanycalculatestheinterestexpenseoftheleaseliabilityineachperiodoftheleasetermaccordingtothefixedperiodicinterestrateandrecordsitintotheprofitandlossofthecurrentperiod,exceptotherwisestipulatedtorecorditintothecostofrelatedassets.Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesshallbeincludedincurrentprofitandlosswhenactuallyincurred,unlessotherwisestipulatedtobeincludedinthecostofrelatedassets.Leasetermbegan,inthefuturewhensubstantialchangesoccurredinthefixedpayment,theguaranteedresidualvalueisexpectedtocopewiththeamountofchange,isusedtodeterminetheleasepaymentratioindexorchange,calloptions,renewaloptionsorterminatetheoptionevaluationresultsortheactualexercisechanges,thecompanyinaccordancewiththechangesoftheleasethepresentvalueofthepaymentstomeasureleaseliability.
29.Provisions
(1)CriteriaofprovisionsOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)MeasurementofprovisionsTheCompanyshallmeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.TheCompanyshallcheckthebookvalueoftheprovisionsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
30.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.TheCompanyshallestimatetheindependentsellingpricebycomprehensivelyconsideringallrelatedinformationthatcanbereasonablyobtainedandmaximallyadopting
theobservableinputvalue.VariableConsiderationIfanyvariableconsiderationexistsinthecontract,theCompanyshalldeterminetheoptimalestimationofthevariableconsiderationbasedontheexpectedvaluesorthemostpossibleamount.Thevariableconsideration’stransactionpriceshallbeincludedwithoutexceedingthetotalrevenueamountrecognizedwithouttheriskofsignificantrestitutionwhenalluncertaintiesareeliminated.Oneachbalancesheetday,theCompanyshallre-estimatethevariableconsiderationamounttobeincludedinthetransactionprice.ConsiderationPayabletotheClientIfanyconsiderationpayabletotheclientexistsinthecontract,theCompanyshallusesuchconsiderationtooffsetthetransactionpriceunlesssuchconsiderationispaidforacquiringotherclearly-definedcommoditiesorservicesfromtheclient,andwritedownthecurrentrevenueatthelatertimebetweenthetimeofrecognizingrelevantrevenuesandthetimeofpaying(orpromisingthepayment)theconsiderationtotheclient.SaleswiththeQualityAssuranceForsaleswiththeQualityAssurance,iftheQualityAssuranceinvolvesanotherseparateserviceexceptfortheguaranteeofallsoldcommoditiesorservicesmeetingallestablishedstandards,theQualityAssuranceshallconstituteasinglePerformanceObligation;otherwise,theCompanyshallmakecorrespondingaccountingtreatmenttotheQualityAssuranceaccordingtoASBENo.13--Contingency.MainResponsibilityPerson/AgentAccordingtowhetherthecontrolovercommoditiesorservicesisobtainedbeforetheyaretransferredtotheclient,theCompanycanjudgewhetheritisMainResponsibilityPersonorAgentbasedonitsstatusduringthetransaction.IftheCompanycancontrolcommoditiesorservicesbeforetheyaretransferredtotheclient,theCompanyshallbeMainResponsibilityPerson,andrevenuesshallberecognizedaccordingtothetotalconsiderationamountreceivedortobereceived;otherwise,theCompanyshallbeAgent,andrevenuesshallberecognizedaccordingtothecommissionorservicefeespredictedtobedulycharged.However,suchamountshallbedeterminedbasedonthenetamountafterdeductingotheramountspayabletootherrelatedpartiesfromthetotalconsiderationreceivedortobedulyreceivedorthefixedcommissionamountorproportion.SpecificmethodsThespecificmethodsoftheCompany'srevenuerecognitionareasfollows:
ThesalecontractbetweentheCompanyanditscustomersusuallycontainsonlytheperformanceobligationforthetransferofgoods,whichissatisfiedatapointintime.Thefollowingrequirementsmustbemettoconfirmtherevenueofdomesticproducts:TheCompanyhasdeliveredthegoodstothecustomerinaccordancewiththecontractandthecustomerhasacceptedthegoods.Thepaymenthasbeenrecoveredorthereceiptvoucherhasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.Thecustomerhasobtainedcontroloftherelevantgoods.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.Thefollowingrequirementsmustbemettoconfirmtherevenueofexportproducts:TheCompanyhasdeclaredtheproductsinaccordancewiththecontract,obtainedthebillsoflading,andreceivedthepaymentorobtainedthereceiptvoucherandtherelatedeconomicbenefitsarelikelytoflowin.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.InterestRevenueInterestRevenueshallbedeterminedaccordingtothetimeoftheCompany’suseofmonetarycapitalandtheactualinterestrate.
RentalIncomeTherentalincomefromoperatingleaseshallberecognizedduringeachleaseperiodaccordingtothestraight-linemethod,andthecontingentrentshallbeincludedintothecurrentprofitandlosswithoutdelay.
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.LeaseLeasereferstoacontractwherebythelessorassignstherighttouseanassettothelesseeforconsiderationwithinacertainperiodoftime.Onthecommencementdateofthecontract,thecompanyevaluateswhetherthecontractisaleaseorincludesalease.Thecontractisaleaseorincludesaleaseifapartyinthecontractcedestherighttocontroltheuseofoneormoreidentifiedassetsforaspecifiedperiodinexchangeforconsideration.Ifthecontractcontainsmultipleseparateleasesatthesametime,thecompanywilldividethecontractandconductaccountingtreatmentforeachseparatelease.Ifthecontractcontainsboththeleasedpartandthenon-leasedpart,thelesseeandthelessorshalldividetheleasedpartandthenon-leasedpart.
(1)TheCompanyactsasthelesseeThegeneralaccountingtreatmentoftheCompanyasalesseeisshowninNote28,LeaseLiabilities.Forshort-termleaseswithaleasetermoflessthan12monthsandlow-valueassetleaseswithalowvaluewhenasingleassetisbrand-new,theCompanychoosesnottorecognizetherighttouseassetsandleaseliabilities,andwillrecordtherelevantrentalexpensesintocurrentprofitsandlossesorthecostofrelevantassetsineachperiodoftheleasetermaccordingtothestraight-linemethod.Iftheleasechangesandthefollowingconditionsaremet,thecompanywilltreattheleasechangeasaseparatelease:theleasechangeexpandsthescopeoftheleasebyaddingtherighttouseoneormoreleasedassets;Theincreasedconsiderationisequivalenttotheamountoftheseparatepricefortheextendedportionoftheleaseadjustedforthecircumstancesofthecontract.Iftheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theCompanyshallre-apportiontheconsiderationofthecontractafterthechange,re-determinetheleaseterm,andre-measuretheleaseliabilityaccordingtothepresentvaluecalculatedfromtheleasepaymentafterthechangeandthereviseddiscountrate.
(2)TheCompanyactsasthelessorOntheleasecommencementdate,theCompanyclassifiestheleasesthatsubstantiallytransferalmostallrisksandrewardsrelatedtotheownershipoftheleasedassetsasfinancialleases,andallotherleasesasoperatingleases.
1)OperatingleaseDuringeachperiodoftheleaseterm,theCompanyrecognizesrentalincomeasrentalincomeinaccordancewiththestraight-linemethod,andtheinitialdirectexpensesincurredarecapitalizedandapportiononthesamebasisasrentalincomerecognition,andrecordedintocurrentprofitandlossbystages.Thevariableleasepaymentsobtainedbythecompanyrelatedtooperatingleasesandnotincludedintheleasereceiptsshallbeincludedinthe
currentprofitandlosswhenactuallyincurred.
2)FinanceleaseOnthebeginningdateoftheleaseterm,thecompanyrecognizesthefinanceleasereceivablesandterminatestherecognitionoffinanceleaseassetsinaccordancewiththenetamountofleaseinvestment(thesumoftheunguaranteedresidualvalueandtheamountofleasereceiptsnotreceivedonthebeginningdateoftheleaseterm).Duringeachperiodoftheleaseterm,thecompanycalculatesandrecognizestheinterestincomeinaccordancewiththeinherentinterestrateofthelease.Thevariableleasepaymentsobtainedbythecompany,whicharenotincludedinthenetleaseinvestmentmeasurement,shallbeincludedinthecurrentprofitandlosswhenactuallyincurred.
(3)After-salesleasebackTheCompanyevaluatesanddetermineswhetherthetransferofassetsinasale-and-leasebacktransactionisasaleinaccordancewiththeaccountingStandardsforBusinessEnterprisesNo.14-Revenue.
1)TheCompanyactsasthelesseeIfthetransferofassetsinthesaleandleasebacktransactionisasale,theCompanyshallmeasuretherighttouseassetsformedbythesaleandleasebackaccordingtothepartofthebookvalueoftheoriginalassetrelatedtotherighttouseacquiredbyleaseback,andshallonlyrecognizetherelevantgainsorlossesinrespectoftherighttransferredtothelessor.Ifthetransferofassetsinasale-and-leasebacktransactionisnotasale,theCompanyshallcontinuetorecognizethetransferredassetsandatthesametimerecognizeafinancialliabilityequaltothetransferincome,andconductaccountingtreatmentforthefinancialliabilityinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
2)TheCompanyactsasthelessorIfthetransferofassetsinasale-and-leasebacktransactionisasale,theCompanyshallprovideaccountingtreatmentforthepurchaseofassetsinaccordancewithotherapplicableaccountingstandardsforenterprisesandtheleaseofassetsinaccordancewithaccountingStandardsforBusinessEnterprisesNo.21-Lease.Ifthetransferofassetsinasale-leasebacktransactionisnotasale,theCompanydoesnotrecognizethetransferredasset,butrecognizesafinancialassetequaltothetransferincome,andconductsaccountingtreatmentonthefinancialassetinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
34.OtherSignificantAccountingPoliciesandAccountingEstimatesTheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
(1)ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsare
consistentwiththebasiclendingarrangements:
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,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
(5)Reservesforlong-termassetsimpairmentTheCompanydeterminesatthebalancesheetdatewhetherthereisanyindicationthatanon-currentasset,otherthanafinancialasset,maybeimpaired.Forintangibleassetswithanuncertainusefullife,impairmenttestsshallbeconductedwhenthereisanindicationofimpairmentbesidestheannualimpairmenttest.Othernon-currentassetsotherthanfinancialassetsshallbetestedforimpairmentwhenthereisanindicationthatthecarryingamountisirrecoverable.Animpairmentisindicatedwhenthecarryingamountofanassetorassetgroupisgreaterthantherecoverableamount,whichisthehigherofthefairvalueminusdisposalexpensesandthepresentvalueofestimatedfuturecashflows.Thenetvalueofthefairvalueminusdisposalexpensesisdeterminedbyreferringtothenegotiablesalepriceorobservablemarketpriceofsimilarassetsinafairtransactionanddeductingincrementalcostsdirectlyattributabletothedisposaloftheasset.Estimatingthepresentvalueoffuturecashflowsrequiressignificantjudgmentswithrespecttotheproduction
volumeoftheasset(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
Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
TheMinistryofFinanceissuedtheAccountingStandardsforBusinessEnterprisesNo.21-Leases(Revised)in2018,requiringthatenterpriseslistedbothdomesticallyandabroadandoverseaslistedenterprisespreparingfinancialstatementsinaccordancewiththeInternationalFinancialReportingStandardsortheAccountingStandardsforBusinessEnterprisesshallimplementitsince1January2019andthatotherscarryitoutsince1January2021. | The10thmeetingofthe9thBoardofDirectorsheldonAugust16,2021 |
In2018,theMinistryofFinanceissuedtherevisedAccountingStandardsforBusinessEnterprisesNo.21--Leases(referredtoasthe"NewLeaseStandards").Thenewleasestandardsrequirethelesseetorecognizetherighttouseassetsandleaseliabilities,aswellasdepreciationandinterestexpenses,forallleasesexceptshort-termleasesandlow-valueassetleases.SinceJanuary1,2021,theCompanyhasconductedaccountingtreatmentinaccordancewiththenewlyrevisedleasestandards.Forcontractsexistingpriortothefirstexecution,theCompanyhaschosennottore-evaluate
whethertheyareleasesorincludeleases,andwillnotadjusttheinformationforcomparableperiodsinaccordancewiththecohesionprovisions.AdoptingthenewlyrevisedleasingstandardsThenewlyrevisedleasingstandardshavenosignificantimpactonthecompany'snetprofit,totalassetsandnetassetsofthecurrentandearlyperiod,andthereisnoadjustmentoftheamountofretainedearningsatthebeginningoftheperiodandotherrelevantitemsinthefinancialstatements.
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningRevenueorLeasessince2020
□Applicable√Notapplicable
(4)RetroactiveAdjustmentstoComparativeDataofPriorYearswhenFirstExecutionofanyNewStandardsGoverningRevenueorLeasessince2020
□Applicable√Notapplicable
VI.Taxation
1.MainTaxesandTaxRate
Categoryoftaxes | Taxbasis | Taxrate |
VAT | Payabletosalesrevenue | 13%,9%,6%,5% |
Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
Enterpriseincometax | Taxableincome | 25%、15%、2.5% |
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. | 2.5% |
2.TaxPreferenceOn30November2021,theCompanyobtainedtheCertificatesforHigh-techEnterprisesagain,anditstillenjoys15-percentpreferentialrateforcorporateincometaxduringtheReportingPeriod;theCompany’scontrollingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythe
corporateincometaxattaxrate15%from1January2011to31December2030inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopmentandMinistryofFinanceAnnouncementNo.23[2020]AnnouncementoftheMinistryofFinance,theStateAdministrationofTaxationandtheNationalDevelopmentandReformCommissiononContinuingtheEnterpriseIncomeTaxPolicyfortheGreatWesternDevelopment.On2December2020,thewholly-ownedsubsidiaryChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.obtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod;Thewholly-ownedsubsidiaryChangzhouXingshengRealEstateManagementCo.,Ltd.iseligiblesmallenterprisewithlowprofitsandshallpaythecorporateincometaxattaxrate2.5%forsmallenterpriseswithlowprofitsduringtheReportingPeriod.
VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Cashonhand | 145,594.98 | 287,505.91 |
Bankdeposits | 561,746,767.12 | 620,966,786.57 |
Othermonetaryassets | 146,074,316.64 | 139,473,930.37 |
Total | 707,966,678.74 | 760,728,222.85 |
Ofwhich:Totalamountdepositedoverseas | ||
Totalamountofrestrictioninusebymortgage,pledgeorfreeze | 145,564,457.15 | 130,788,682.35 |
Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB145,564,457.15,ofwhichRMB141,773,647.60wasthecashdepositforbankacceptancebills,RMB2,993,220.00wascashdepositforL/G,andRMB797,589.55wascashdepositforenvironment.
2.TradingFinancialAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Financialassetsatfairvaluethroughprofitorloss | 404,053,261.57 | 11,500,272.00 |
Ofwhich:Stocks | 121,940,343.76 | |
Forwardsettlement | 200,272.00 | |
Financialproducts | 282,112,917.81 | 11,300,000.00 |
Total | 404,053,261.57 | 11,500,272.00 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
Item | Endingbalance | Beginningbalance |
Bankacceptancebill | 334,311,236.78 | 600,140,938.05 |
Total | 334,311,236.78 | 600,140,938.05 |
Ifthebaddebtprovisionfornotesreceivablewaswithdrawninaccordancewiththegeneralmodelofexpectedcreditlosses,informationrelatedtobaddebtprovisionshallbedisclosedbyreferencetothedisclosuremethodofotherreceivables:
□Applicable√Notapplicable
(2)ThereWereNoNotesReceivablePledgedbytheCompanyatthePeriod-end
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
Bankacceptancebill | 135,391,302.15 | |
Total | 135,391,302.15 |
(4)ThereWereNoNotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreementatthePeriod-end
4.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 50,437,453.63 | 9.10 | 44,054,367.15 | 87.34 | 6,383,086.48 | 33,703,039.72 | 5.98% | 31,807,452.89 | 94.38% | 1,895,586.83 |
Ofwhich: |
Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 504,092,720.08 | 90.90 | 135,266,680.08 | 26.83 | 368,826,040.00 | 529,486,382.09 | 94.02% | 134,227,952.43 | 25.35% | 395,258,429.66 |
Ofwhich: | ||||||||||
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 504,092,720.08 | 90.90 | 135,266,680.08 | 26.83 | 368,826,040.00 | 529,486,382.09 | 94.02% | 134,227,952.43 | 25.35% | 395,258,429.66 |
Total | 554,530,173.71 | 100.00 | 179,321,047.23 | 32.34 | 375,209,126.48 | 563,189,421.81 | 100.00% | 166,035,405.32 | 29.48% | 397,154,016.49 |
Accountreceivableswithdrawnbaddebtprovisionseparatelywithsignificantamountattheperiodend:
Unit:RMB
Name | Endingbalance | |||
Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonofwithdrawal | |
Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
Customer2 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
Customer4 | 2,797,123.26 | 2,194,980.28 | 78.47% | Expectedtodifficultlyrecover |
Customer5 | 3,633,081.23 | 2,122,165.73 | 58.41% | Expectedtodifficultlyrecover |
Customer6 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer7 | 1,523,110.59 | 1,523,110.59 | 100.00% | Difficulttorecover |
Customer8 | 1,511,937.64 | 302,387.53 | 20.00% | Expectedtodifficultlyrecover |
Customer9 | 3,780,509.60 | 720,031.71 | 19.05% | Expectedtodifficultlyrecover |
Customer10 | 1,962,873.80 | 1,962,873.80 | 100.00% | Difficulttorecover |
Customer11 | 2,790,920.00 | 2,790,920.00 | 100.00% | Difficulttorecover |
Customer12 | 2,025,880.18 | 2,025,880.18 | 100.00% | Difficulttorecover |
Customer13 | 2,589,892.74 | 2,589,892.74 | 100.00% | Difficulttorecover |
Customer14 | 2,837,045.23 | 2,837,045.23 | 100.00% | Difficulttorecover |
Customer15 | 5,972,101.90 | 5,972,101.90 | 100.00% | Difficulttorecover |
Customer16 | 4,592,679.05 | 4,592,679.05 | 100.00% | Difficulttorecover |
Total | 48,190,060.91 | 41,806,974.43 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
Aging | Endingbalance | ||
Carryingamount | Baddebtprovision | Withdrawalproportion | |
Within1year | 349,034,264.26 | 6,980,685.29 | 2.00% |
1to2years | 22,333,500.04 | 1,116,675.00 | 5.00% |
2to3years | 2,363,804.88 | 354,570.74 | 15.00% |
3to4years | 2,689,676.16 | 806,902.85 | 30.00% |
4to5years | 4,159,071.34 | 2,495,442.80 | 60.00% |
Over5years | 123,512,403.40 | 123,512,403.40 | 100.00% |
Total | 504,092,720.08 | 135,266,680.08 | -- |
Notesofthebasisofdeterminingthegroup:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsincurredactually,amongwhichtheaccountsincurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Carryingamount |
Within1year(including1year) | 353,357,486.52 |
1to2years | 45,104,892.94 |
2to3years | 4,591,959.37 |
Over3years | 151,475,834.88 |
3to4years | 4,639,425.72 |
4to5years | 6,695,361.09 |
Over5years | 140,141,048.07 |
Total | 554,530,173.71 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
Withdrawal | Reversalorrecovery | Write-off | |||
Baddebtprovisionwithdrawnseparately | 31,807,452.89 | 24,084,034.50 | 147,611.25 | 11,689,508.99 | 44,054,367.15 |
Baddebtprovisionwithdrawnbygroup | 134,227,952.43 | 27,517,871.70 | 26,479,144.05 | 135,266,680.08 | |
Total | 166,035,405.32 | 51,601,906.20 | 147,611.25 | 38,168,653.04 | 179,321,047.23 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)ThereWereNoAccountsReceivablewithActualVerificationduringtheReportingPeriod.
Unit:RMB
Item | Verifiedamount |
Accountsreceivablewithactualverification | 38,168,653.04 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
Nameoftheentity | Natureoftheaccountsreceivable | Verifiedamount | Reasonforverification | Verificationproceduresperformed | Arisingfromrelated-partytransactionsornot |
Customer1 | Accountsreceivable | 997,047.83 | Theaccountageofthedebtorismorethan5years,andthedebtorhasnoassetstopayoffduetothecancellationordebtrestructuringoftheotherparty,bankruptcyliquidationorjudiciallitigation. | TheCompanyheldthe10thMeetingofthe9thBoardofDirectorsandthe10thMeetingofthe9thSupervisoryCommitteeon16August2021andapprovedtheProposalonVerificationofSomeAccountsReceivable;OnDecember23,2021,the30thmeetingoftheboardof2ndDirectorsofChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd.decidedtoreviewandapprovetheProposalonthewrite-offofpartofreceivablesbyChangzhouChangniuMachineryCo.,LTD. | Not |
Customer2 | 516,384.40 | ||||
Customer3 | 5,359,381.00 | ||||
Customer4 | 5,309,605.00 | ||||
Customer5 | 3,662,926.13 | ||||
Customer6 | 3,279,100.00 | ||||
Customer7 | 2,295,898.35 | ||||
Customer8 | 1,617,988.01 | ||||
Customer9 | 707,050.39 | ||||
Customer10 | 612,001.02 | ||||
Customer11 | 583,558.66 | ||||
Customer12 | 533,146.26 | ||||
Customer13 | 978,233.10 | ||||
Customer14 | 1,217,860.04 | ||||
Total | -- | 27,670,180.19 | -- | -- | -- |
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
Customer1 | 174,635,898.30 | 31.49% | 3,492,717.97 |
Customer2 | 64,375,015.92 | 11.61% | 1,287,500.32 |
Customer3 | 37,370,796.27 | 6.74% | 747,415.93 |
Customer4 | 18,082,456.14 | 3.26% | 361,649.12 |
Customer5 | 8,152,568.83 | 1.47% | 163,051.38 |
Total | 302,616,735.46 | 54.57% |
5.AccountsReceivableFinancing
Unit:RMB
Item | Endingbalance | Beginningbalance |
Bankacceptancebills | 497,388,826.02 | |
Total | 497,388,826.02 |
ChangesofaccountsreceivablefinancingandfairvaluethereofintheReportingPeriod
√Applicable□NotapplicablePleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivablefinancing.
□Applicable√NotapplicableOthernotes:
TheCompanydiscountsandendorsesaportionofitsbankacceptancesbasedonitsroutinefundmanagementneeds,andtheconditionsforderecognitionaremet,sothebankacceptancesareclassifiedasfinancialassetsmeasuredatfairvaluewhosechangeisincludedinothercomprehensiveincome.On31December2021,therewasnobankacceptanceforwhichbaddebtprovisionaccruedseparatelyintheCompany.TheCompanymeasurestheprovisionofbaddebtprovisiononthebasisofexpectedcreditlossesthroughouttheduration.TheCompanybelievesthatthecreditriskcharacteristicsofthebankacceptancesitholdsaresimilar,andtherewasnobankacceptanceforwhichbaddebtprovisionaccruedseparately.Inaddition,therewasnosignificantcreditriskinthebankacceptance,andnosignificantlosswouldbecausedbybankdefaults.
(1)AccountsreceivablefinancingwhichhadendorsedbytheCompanyorhaddiscountedbuthadnotdueattheperiod-end
Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
Bankacceptancebill | 214,422,574.14 | |
Total | 214,422,574.14 |
6.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
Aging | Endingbalance | Beginningbalance | ||
Amount | Proportion | Amount | Proportion | |
Within1year | 6,706,970.55 | 81.82% | 7,039,656.05 | 75.23% |
1to2years | 94,583.55 | 1.15% | 641,762.79 | 6.86% |
2to3years | 362,397.67 | 4.42% | 673,819.29 | 7.20% |
Over3years | 1,033,466.62 | 12.61% | 1,002,602.620 | 10.71% |
Total | 8,197,418.39 | -- | 9,357,840.75 | -- |
Therewasnoprepaymentwithsignificantamountagingoveroneyearasoftheperiod-end.
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB2,411,854.81accountingfor29.42%ofthetotalendingbalanceofprepayments.
7.OtherReceivables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Interestreceivable | ||
Dividendreceivable | ||
Otherreceivables | 19,515,350.52 | 6,212,062.80 |
Total | 19,515,350.52 | 6,212,062.80 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
Nature | Endingcarryingvalue | Beginningcarryingvalue |
Marginandcashpledge | 1,299,600.00 | 4,200.00 |
Intercoursefunds | 35,889,738.80 | 22,967,220.99 |
Pettycashandborrowingsbyemployees | 1,184,204.41 | 1,359,483.08 |
Other | 13,630,284.64 | 13,806,779.19 |
Total | 52,003,827.85 | 38,137,683.26 |
2)WithdrawalofBadDebtProvision
Unit:RMB
Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
Balanceof1January2021 | 31,925,620.46 | 31,925,620.46 | ||
Balanceof1January2021intheCurrentPeriod | ||||
--TransfertoSecondstage | -26,783,142.19 | 26,783,142.19 | ||
--TransfertoThirdstage | -5,039,368.41 | 5,039,368.41 | ||
--ReversetoSecondstage | ||||
--ReversetoFirststage | ||||
WithdrawaloftheCurrentPeriod | 184,499.59 | 674,822.50 | 859,322.09 |
ReversaloftheCurrentPeriod | 296,465.22 | 296,465.22 | ||
Write-offsoftheCurrentPeriod | ||||
VerificationoftheCurrentPeriod | ||||
Otherchanges | ||||
Balanceof30December2021 | 287,609.45 | 26,486,676.97 | 5,714,190.91 | 32,488,477.33 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Endingbalance |
Within1year(including1year) | 17,631,994.08 |
1to2years | 1,416,120.16 |
2to3years | 116,820.58 |
Over3years | 32,838,893.03 |
3to4years | 396,819.78 |
4to5years | 1,119,890.57 |
Over5years | 31,322,182.68 |
Total | 52,003,827.85 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
Withdrawal | Reversalorrecovery | Write-off | Other | |||
Baddebtprovisionforwhichaccruedseparately | 5,039,368.41 | 674,822.50 | 5,714,190.91 | |||
Baddebtprovisionforwhichaccruedbygroup | 26,886,252.05 | 111,965.63 | 26,774,286.42 | |||
Total | 31,925,620.46 | 674,822.50 | 111,965.63 | 32,488,477.33 |
4)ThereWasNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 5.65% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 5.49% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 3.13% | 1,626,483.25 |
ChangchaiGroupSettlementCenter | Intercoursefunds | 1,140,722.16 | Over5years | 2.19% | 1,140,722.16 |
ChangzhouHuadiEngineeringGuaranteeCo.,Ltd. | Engineeringdeposit | 1,065,400.00 | 1-2years | 2.05% | 53,270.00 |
Total | 9,625,793.43 | 18.51% | 8,613,663.43 |
8.InventoryWhethertheCompanyneedstocomplywiththerequirementsofrealestateindustryNo
(1)CategoryofInventory
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
Rawmaterials | 148,617,321.85 | 7,260,564.47 | 141,356,757.38 | 134,712,519.83 | 5,559,513.66 | 129,153,006.17 |
Materialsprocessedoncommission | 13,877,280.60 | 13,877,280.60 | 14,065,866.52 | 68,876.57 | 13,996,989.95 | |
Goodsinprocess | 119,354,374.14 | 15,534,236.35 | 103,820,137.79 | 134,454,109.88 | 18,512,449.08 | 115,941,660.80 |
Finishedgoods | 403,855,588.94 | 13,029,104.26 | 390,826,484.68 | 361,975,004.89 | 15,261,416.17 | 346,713,588.72 |
Lowpricedandeasilywornarticles | 1,203,097.73 | 1,203,097.73 | 1,906,803.53 | 1,031,708.62 | 875,094.91 | |
Total | 686,907,663.26 | 35,823,905.08 | 651,083,758.18 | 647,114,304.65 | 40,433,964.10 | 606,680,340.55 |
(2)Provisionforinventorydepreciationandprovisionforimpairmentofcontractperformancecosts
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
Withdrawal | Other | Reversalorwrite-off | Other | |||
Rawmaterials | 5,559,513.65 | 5,635,488.24 | 3,934,437.42 | 7,260,564.47 | ||
Materialsprocessedoncommission | 68,876.57 | 68,876.57 | ||||
Goodsinprocess | 18,512,449.09 | 4,137,802.16 | 7,116,014.90 | 15,534,236.35 | ||
Finishedgoods | 15,261,416.17 | 2,232,311.91 | 13,029,104.26 | |||
Lowpricedandeasilywornarticles | 1,031,708.62 | 1,031,708.62 | ||||
Total | 40,433,964.10 | 9,773,290.40 | 14,383,349.42 | 35,823,905.08 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories
9.OtherCurrentAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
TheVATtaxcredits | 37,806,274.29 | 22,534,134.72 |
Privateplacementofintermediaryagencyfees | 2,358,490.56 | |
Prepaidcorporateincometax | 6,143,886.15 | 2,240,396.88 |
Prepaidexpense | 110,662.13 | 80,070.32 |
Other | 86,270.24 | |
Total | 44,060,822.57 | 27,299,362.72 |
10.InvestmentsinDebtObligations
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
Three-yearfixedtermdeposit | 37,898,226.39 | 37,898,226.39 | ||||
Total | 37,898,226.39 | 37,898,226.39 |
Significantinvestmentsindebtobligations
Unit:RMB
Item | Endingbalance | Beginningbalance |
Parvalue | Couponrate | Actualinterestrate | Maturitydate | Parvalue | Couponrate | Actualinterestrate | Maturitydate | |
Three-yearfixedtermdeposit | 37,000,000.00 | 3.80% | 26April2024 | |||||
Total | 37,000,000.00 | —— | —— | —— | —— | —— | —— |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthereportingperiod
□Applicable√Notapplicable
11.Long-termEquityInvestment
Unit:RMB
Investees | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
Additionalinvestment | Reducedinvestment | Gainorlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Cashbonusorprofitannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
II.Associatedenterprises | |||||||||||
BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 0.00 | 44,182.50 | ||||||||
Subtotal | 0.00 | 0.00 | 44,182.50 | ||||||||
Total | 0.00 | 0.00 | 44,182.50 |
12.OtherEquityInstrumentInvestment
Unit:RMB
Item | Endingbalance | Beginningbalance |
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 146,375,646.53 | 102,198,950.87 |
Otherequityinstrumentinvestmentmeasuredbyfairvalue | 633,502,000.00 | 582,939,000.00 |
Total | 779,877,646.53 | 685,137,950.87 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
FotonMotorCo.,Ltd. | 455,296,000.00 | Non-tradingequityinvestment | ||||
BankofJiangsu | 7,394,400.00 | 93,636,000.00 | Non-tradingequityinvestment | |||
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 46,375,646.53 | Non-tradingequityinvestment |
Othernotes:
Thecorporatesecuritiesofaccommodationbusinessstillonlendingattheperiod-end:3,276,000sharesofFotonMotorCo.,Ltd.
13.OtherNon-currentFinancialAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
JiangsuLianceElectromechanicalTechnologyCo.,Ltd. | 7,200,000.00 | |
KailongHighTechnologyCo.,Ltd. | 38,282,105.00 | |
GuizhouWeimenPharmaceuticalCo.,Ltd. | 200,104.80 | |
GuizhouAndaTechnologyEnergyCo.,Ltd. | 195,297.49 | |
HenanLantianGasCo.,Ltd. | 160,744.76 | |
HebeiSongheRenewableResourcesCo.,Ltd. | 104,699.44 | |
AnhuiHaofangElectromechanicalCo.,Ltd. | 89,987.14 | |
JiangsuHorizonNewEnergyTechnology | 112,500,000.00 | 52,500,000.00 |
14.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
Item | Housesandbuildings | Total |
I.Originalcarryingvalue | ||
1.Beginningbalance | 87,632,571.14 | 87,632,571.14 |
2.Increasedamountoftheperiod | 5,444,908.38 | 5,444,908.38 |
(1)Outsourcing | ||
(2)Transferfrominventories/fixedassets/constructioninprogress | 5,444,908.38 | 5,444,908.38 |
(3)Enterprisecombinationincrease | ||
3.Decreasedamountoftheperiod | ||
(1)Disposal | ||
(2)Othertransfer | ||
4.Endingbalance | 93,077,479.52 | 93,077,479.52 |
II.Accumulativedepreciationandaccumulativeamortization | ||
1.Beginningbalance | 41,393,245.11 | 41,393,245.11 |
2.Increasedamountoftheperiod | 7,086,979.20 | 7,086,979.20 |
(1)Withdrawaloramortization | 2,208,340.80 | 2,208,340.80 |
(2)Transferredinto | 4,878,638.40 | 4,878,638.40 |
3.Decreasedamountoftheperiod | ||
(1)Disposal | ||
(2)Othertransfer | ||
4.Endingbalance | 48,480,224.31 | 48,480,224.31 |
III.Depreciationreserves | ||
1.Beginningbalance | ||
2.Increasedamountoftheperiod | ||
(1)Withdrawal | ||
3.Decreasedamountoftheperiod | ||
(1)Disposal | ||
(2)Othertransfer | ||
4.Endingbalance | ||
IV.Carryingvalue | ||
1.Endingcarryingvalue | 44,597,255.21 | 44,597,255.21 |
2.Beginningcarryingvalue | 46,239,326.03 | 46,239,326.03 |
Co.,Ltd.
Co.,Ltd. | ||
Total | 112,500,000.00 | 98,732,938.63 |
15.FixedAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Fixedassets | 402,915,521.65 | 454,181,555.68 |
Disposaloffixedassets | ||
Total | 402,915,521.65 | 454,181,555.68 |
(1)ListofFixedAssets
Unit:RMB
Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
I.Originalcarryingvalue | |||||
1.Beginningbalance | 465,428,975.71 | 996,970,879.65 | 16,939,308.01 | 42,124,393.11 | 1,521,463,556.48 |
2.Increasedamountoftheperiod | 2,893,957.93 | 24,394,538.81 | 746,936.13 | 1,132,052.80 | 29,167,485.67 |
(1)Purchase | 890,191.23 | 1,758,130.59 | 499,325.51 | 553,980.35 | 3,701,627.68 |
(2)Transferfromconstructioninprogress | 2,003,766.70 | 22,636,408.22 | 247,610.62 | 578,072.45 | 25,465,857.99 |
(3)Enterprisecombinationincrease | |||||
3.Decreasedamountoftheperiod | 10,947,523.68 | 8,814,883.34 | 2,176,590.76 | 1,901,608.94 | 23,840,606.72 |
(1)Disposalorscrap | 5,502,615.30 | 8,814,883.34 | 2,176,590.76 | 1,901,608.94 | 18,395,698.34 |
(2)Transferout | 5,444,908.38 | 5,444,908.38 | |||
4.Endingbalance | 457,375,409.96 | 1,012,550,535.12 | 15,509,653.38 | 41,354,836.97 | 1,526,790,435.43 |
II.Accumulativedepreciation | |||||
1.Beginningbalance | 298,167,122.41 | 718,498,347.70 | 13,464,995.78 | 36,670,860.66 | 1,066,801,326.55 |
(2)ListofTemporarilyIdleFixedAssets
Item | Originalcarryingvalue | Accumulativedepreciation | Depreciationreserves | Carryingvalue | Note |
Machineryequipment | 561,589.50 | 80,915.25 | 480,674.25 |
16.ConstructioninProgress
Unit:RMB
2.Increasedamountoftheperiod | 16,282,369.02 | 55,623,684.44 | 937,276.73 | 1,076,506.45 | 73,919,836.64 |
(1)Withdrawal | 16,282,369.02 | 55,623,684.44 | 937,276.73 | 1,076,506.45 | 73,919,836.64 |
3.Decreasedamountoftheperiod | 4,911,488.40 | 8,529,943.08 | 2,002,885.69 | 1,882,606.49 | 17,326,923.66 |
(1)Disposalorscrap | 32,850.00 | 8,529,943.08 | 2,002,885.69 | 1,882,606.49 | 12,448,285.26 |
(2)Transferout | 4,878,638.40 | 4,878,638.40 | |||
4.Endingbalance | 309,538,003.03 | 765,592,089.06 | 12,399,386.82 | 35,864,760.62 | 1,123,394,239.53 |
III.Depreciationreserves | |||||
1.Beginningbalance | 480,674.25 | 480,674.25 | |||
2.Increasedamountoftheperiod | |||||
(1)Withdrawal | |||||
3.Decreasedamountoftheperiod | |||||
(1)Disposalorscrap | |||||
4.Endingbalance | 480,674.25 | 480,674.25 | |||
IV.Carryingvalue | |||||
1.Endingcarryingvalue | 147,837,406.93 | 246,477,771.81 | 3,110,266.56 | 5,490,076.35 | 402,915,521.65 |
2.Beginningcarryingvalue | 167,261,853.30 | 277,991,857.70 | 3,474,312.23 | 5,453,532.45 | 454,181,555.68 |
Item | Endingbalance | Beginningbalance |
Constructioninprogress | 268,417,880.66 | 44,844,896.77 |
Engineeringmaterials | 1,887,810.25 | 21,657,535.64 |
Total | 270,305,690.91 | 66,502,432.41 |
(1)ListofConstructioninProgress
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 1,097,435.90 | 1,097,435.90 | 1,128,887.90 | 1,128,887.90 | ||
Innovationcapacityconstructionoftechnologycenter | 3,714,601.76 | 3,714,601.76 | ||||
Relocationprojectoflightengineandcasting | 254,748,122.49 | 254,748,122.49 | 40,307,243.35 | 40,307,243.35 | ||
Equipmenttobeinstalledandpaymentforprojects | 8,857,720.51 | 8,857,720.51 | 3,408,765.52 | 3,408,765.52 | ||
Total | 268,417,880.66 | 268,417,880.66 | 44,844,896.77 | 44,844,896.77 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructio | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsfortheRepor | CapitalizationrateofinterestsfortheReportingPerio | Capitalresources |
nstobudget | tingPeriod | d | ||||||||||
Expansioncapacityofmulti-cylinder(The2ndPeriod) | 79,000,000.00 | 1,128,887.90 | 31,452.00 | 1,097,435.90 | Uncompleted | Self-raised | ||||||
Innovationcapacityconstructionoftechnologycenter | 96,066,200.00 | 3,714,601.76 | 3,714,601.76 | 3.87% | Uncompleted | Self-raisedfundsandraisedfund | ||||||
Relocationprojectoflightengineandcasting | 1,000,118,700.00 | 40,307,243.35 | 214,440,879.14 | 254,748,122.49 | 25.47% | Uncompleted | Self-raisedfundsandraisedfund | |||||
Noisereductionrenovationofthehouses | 1,972,314.70 | 1,972,314.70 | Completed | Self-raised | ||||||||
Total | 1,175,184,900.0 | 43,408,445.95 | 218,155,480.90 | 2,003,766.70 | 259,560,160.15 | -- | -- | -- |
(3)EngineeringMaterials
Unit:RMB
Item
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Engineeringmaterials | 1,887,810.25 | 1,887,810.25 | 21,657,535.64 | 21,657,535.64 | ||
Total | 1,887,810.25 | 1,887,810.25 | 21,657,535.64 | 21,657,535.64 |
17.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
I.Originalcarryingvalue | |||||
1.Beginningbalance | 206,783,546.68 | 14,067,915.16 | 5,488,000.00 | 1,087,042.79 | 227,426,504.63 |
2.Increasedamountoftheperiod | 1,668,804.50 | 563,930.68 | 2,232,735.18 | ||
(1)Purchase | 1,668,804.50 | 563,930.68 | 2,232,735.18 | ||
(2)InternalR&D | |||||
(3)Businesscombinationincrease | |||||
3.Decreasedamountoftheperiod | |||||
(1)Disposal | |||||
4.Endingbalance | 206,783,546.68 | 15,736,719.66 | 5,488,000.00 | 1,650,973.47 | 229,659,239.81 |
II.Accumulatedamortization | |||||
1.Beginningbalance | 54,545,676.02 | 11,879,287.65 | 2,103,733.18 | 27,176.07 | 68,555,872.92 |
2.Increasedamountoftheperiod | 4,259,967.94 | 977,672.47 | 548,799.96 | 162,180.61 | 5,948,620.98 |
(1)Withdrawal | 4,259,967.94 | 977,672.47 | 548,799.96 | 162,180.61 | 5,948,620.98 |
3.Decreasedamountoftheperiod | |||||
(1)Disposal | |||||
4.Endingbalance | 58,805,643.96 | 12,856,960.12 | 2,652,533.14 | 189,356.68 | 74,504,493.90 |
III.Depreciationreserves | |||||
1.Beginningbalance |
2.Increasedamountoftheperiod | |||||
(1)Withdrawal | |||||
3.Decreasedamountoftheperiod | |||||
(1)Disposal | |||||
4.Endingbalance | |||||
IV.Carryingvalue | |||||
1.Endingcarryingvalue | 147,977,902.72 | 2,879,759.54 | 2,835,466.86 | 1,461,616.79 | 155,154,745.91 |
2.Beginningcarryingvalue | 152,237,870.66 | 2,188,627.51 | 3,384,266.82 | 1,059,866.72 | 158,870,631.71 |
18.Long-termPrepaidExpenses
Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
Furnitureofemployeedormitory,etc. | 13,693.20 | 13,693.20 | |||
Trademarkrenewalfee | 114,257.43 | 3,912.13 | 110,345.30 | ||
Total | 13,693.20 | 114,257.43 | 17,605.33 | 110,345.30 |
19.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
Item | Endingbalance | Beginningbalance | ||
Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
Baddebtprovision | 7,196,880.38 | 1,087,755.38 | 6,544,083.47 | 981,314.04 |
Deductibleloss | 59,064,221.02 | 9,085,419.14 | 21,670,394.08 | 3,250,559.11 |
Inventoryfallingpricereserves | 2,990,223.81 | 448,533.57 | ||
Impairmentoffixedassets | 480,674.25 | 72,101.14 | ||
Total | 69,731,999.46 | 10,693,809.23 | 28,214,477.55 | 4,231,873.15 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
Item | Endingbalance | Beginningbalance |
Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
Changesinfairvalueofotherequityinstrumentinvestment | 595,307,646.53 | 89,296,146.98 | 500,567,950.87 | 75,085,192.63 |
Changesinfairvalueoftradingfinancialassets | 89,101,335.36 | 22,064,042.06 | 18,481,109.00 | 4,600,250.05 |
Changesinfairvalueofothernon-currentfinancialassets | 36,250,000.00 | 5,437,500.00 | 2,500,000.00 | 375,000.00 |
Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 3,643,147.16 | 546,472.07 | 4,074,374.26 | 611,156.14 |
Total | 724,302,129.05 | 117,344,161.11 | 525,623,434.13 | 80,671,598.82 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Baddebtprovision | 204,612,644.18 | 191,416,942.31 |
Fallingpricereservesofinventories | 32,833,681.27 | 40,433,964.10 |
Deductibleloss | 14,716,019.78 | 13,352,584.61 |
Total | 252,162,345.23 | 245,203,491.02 |
(4)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
Years | Endingamount | Beginningamount | Note |
2021 | 1,490,211.13 | ||
2022 | 434,000.66 | 769,219.70 | |
2023 | 940,673.56 | 2,275,610.42 | |
2024 | 6,538,363.99 | 6,538,363.99 | |
2025 | 2,279,179.37 | 2,279,179.37 | |
2026 | 4,523,802.20 | ||
Total | 14,716,019.78 | 13,352,584.61 | -- |
20.OtherNon-currentAssets
Unit:RMB
Item | Endingbalance | Beginningbalance |
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Advancespaymentofequipments | 4,543,240.88 | 4,543,240.88 | 19,971,006.56 | 19,971,006.56 | ||
Total | 4,543,240.88 | 4,543,240.88 | 19,971,006.56 | 19,971,006.56 |
21.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
Item | Endingbalance | Beginningbalance |
Mortgageloans | 7,000,000.00 | 7,000,000.00 |
Guaranteedloans | 5,000,000.00 | 10,000,000.00 |
Creditloans | 5,000,000.00 | |
Obligationtopaybillsdiscountedbeforematurity | 61,971,466.65 | |
Total | 73,971,466.65 | 22,000,000.00 |
(2)ThereWasNoShort-termBorrowingsOverduebutUnpaid.
22.NotesPayable
Unit:RMB
Category | Endingbalance | Beginningbalance |
Bankacceptancebill | 550,774,400.00 | 595,346,000.00 |
Total | 550,774,400.00 | 595,346,000.00 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
23.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
Paymentforgoods | 666,186,668.82 | 612,757,392.46 |
Total | 666,186,668.82 | 612,757,392.46 |
(2)SignificantAccountsPayableAgingoverOneYear
Item | Endingbalance | Unpaid/Un-carry-overreason |
Paymentforgoods | 12,367,497.92 | Supplierterminatescooperation,pendingpayment |
Paymentforequipment | 1,845,062.03 | Equipmentwarranty |
Total | 14,212,559.95 |
24.AdvancesfromCustomers
Unit:RMB
Item | Endingbalance | Beginningbalance |
Paymentforgoods | 660,965.62 | 661,612.17 |
Total | 660,965.62 | 661,612.17 |
Therewerenosignificantadvancesfromcustomersagingoveroneyearattheendoftheperiod.
25.ContractLiabilities
Unit:RMB
Item | Endingbalance | Beginningbalance |
Contractliabilities | 26,864,081.97 | 35,944,517.15 |
Total | 26,864,081.97 | 35,944,517.15 |
Therewerenosignificantcontractliabilitiesagingoveroneyearattheendoftheperiod.
26.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
I.Short-termsalary | 50,127,161.47 | 285,683,270.01 | 290,424,764.00 | 45,385,667.48 |
II.Post-employmentbenefit-definedcontributionplans | 32,595,783.09 | 32,595,783.09 | ||
III.Terminationbenefits | ||||
IV.Currentportionofotherbenefits | ||||
Total | 50,127,161.47 | 318,279,053.10 | 323,020,547.09 | 45,385,667.48 |
(2)ListofShort-termSalary
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Salary,bonus,allowance,subsidy | 41,908,627.17 | 240,287,147.00 | 244,820,001.40 | 37,375,772.77 |
2.Employeewelfare | 1,592.74 | 2,040,614.93 | 2,040,614.93 | 1,592.74 |
3.Socialinsurance | 19,165,330.63 | 19,165,330.63 | ||
Ofwhich:Medicalinsurancepremiums | 15,877,310.21 | 15,877,310.21 | ||
Work-relatedinjuryinsurance | 1,747,668.07 | 1,747,668.07 |
Maternityinsurance | 1,540,352.35 | 1,540,352.35 | ||
4.Housingfund | 19,414,745.80 | 19,414,745.80 | ||
5.Laborunionbudgetandemployeeeducationbudget | 8,216,941.56 | 4,775,431.65 | 4,984,071.24 | 8,008,301.97 |
6.Short-termabsencewithsalary | ||||
7.Short-termprofitsharingscheme | ||||
Total | 50,127,161.47 | 285,683,270.01 | 290,424,764.00 | 45,385,667.48 |
(3)ListofDefinedContributionPlans
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
1.Basicpensionbenefits | 31,606,867.16 | 31,606,867.16 | ||
2.Unemploymentinsurance | 988,915.93 | 988,915.93 | ||
3.Enterpriseannuities | ||||
Total | 32,595,783.09 | 32,595,783.09 |
27.TaxesPayable
Unit:RMB
Item | Endingbalance | Beginningbalance |
VAT | 372,401.11 | 461.22 |
Corporateincometax | 470,363.07 | 531,557.38 |
Personalincometax | 76,559.47 | 114,208.40 |
Urbanmaintenanceandconstructiontax | 957,520.42 | 879,346.31 |
Propertytax | 1,160,865.33 | 94,863.50 |
Landusetax | 1,026,217.69 | 100,135.19 |
Stampduty | 44,759.84 | 6,851.35 |
EducationSurcharge | 90,862.46 | 35,023.81 |
Comprehensivefees | 1,075,134.76 | 1,075,134.76 |
Environmentalprotectiontax | 31,694.67 | 31,903.49 |
Total | 5,306,378.82 | 2,869,485.41 |
28.OtherPayables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Interestpayable | ||
Dividendspayable | 3,891,433.83 | 3,891,433.83 |
Otherpayables | 144,469,939.46 | 193,653,642.25 |
Total | 148,361,373.29 | 197,545,076.08 |
(1)DividendsPayable
Unit:RMB
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
Item | Endingbalance | Beginningbalance |
Margin&cashpledged | 5,045,246.58 | 3,406,041.83 |
Intercoursefundsamongunits | 8,364,769.41 | 9,309,617.95 |
Intercoursefundsamongindividuals | 402,661.04 | 1,256,848.49 |
Salesdiscountandthreeguarantees | 114,581,855.32 | 147,739,746.71 |
Other | 16,075,407.11 | 31,941,387.27 |
Total | 144,469,939.46 | 193,653,642.25 |
2)SignificantOtherPayablesAgingoverOneYearThesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
29.OtherCurrentLiabilities
Unit:RMB
Item | Endingbalance | Beginningbalance |
Saleservicefee | 460,437.94 | 365,047.65 |
Transportationstoragefee | 870,397.06 | 260,055.33 |
Electriccharge | 3,131,920.88 | 1,972,314.61 |
Taxtobetransferred | 2,250,515.65 | 2,636,529.53 |
Estimatedsharevalueaddedtax | 3,989,913.45 |
Item
Item | Endingbalance | Beginningbalance |
Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
Interestofpreferredshares/perpetualbondclassifiedasequityinstrument | ||
Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
Other | ||
Total | 3,891,433.83 | 3,891,433.83 |
Obligationtopaybillstransferredbeforematurity | 72,391,302.15 | |
Otherwithholdingexpenses | 5,843,705.66 | |
Total | 88,938,192.79 | 5,233,947.12 |
30.DeferredIncome
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
Governmentgrants | 56,949,737.60 | -14,970,000.00 | 2,364,382.20 | 39,615,355.40 | Governmentappropriation |
Total | 56,949,737.60 | -14,970,000.00 | 2,364,382.20 | 39,615,355.40 | -- |
Iteminvolvinggovernmentgrants:
Unit:RMB
Item | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengines | 28,770,000.00 | -14,770,000.00 | 759,633.00 | 200,000.00 | 13,040,367.00 | Relatedtoassets | ||
Removecompensation | 19,179,737.60 | 665,973.62 | 18,513,763.98 | Relatedtoassets | ||||
ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 9,000,000.00 | 938,775.58 | 8,061,224.42 | Relatedtoassets | ||||
Total | 56,949,737.60 | -14,770,000.00 | 2,364,382.20 | 200,000.00 | 39,615,355.40 |
Notes:Thenationalmajorspecialproject-theflexibleprocessingproductionlinefordieselenginecylinderblocksunderwentcomprehensiveperformanceevaluationbytheIndustrialDevelopmentPromotionCenteroftheMinistryofIndustryandInformationTechnology(MIIT),anditwasdeterminedthatthefinalappropriationincomewasRMB13.8million,withRMB28.77millionreceivedfromthecountryandthebalanceofRMB14.77millionreturnedtoMIIT.
31.ShareCapital
Unit:RMB
Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
Thesumofshares | 561,374,326.00 | 144,318,181.00 | 144,318,181.00 | 705,692,507.00 |
Note:Anon-publicofferingofupto168,412,297newshareswasdeliberatedonandapprovedasaresolutionofthe8th
Meetingofthe9
thBoardofDirectorsheldon13April2021andthe2020AnnualGeneralMeetingheldon7May2021andapprovedbytheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)issuedbyChangchaiCompanyLimitedtheChinaSecuritiesRegulatoryCommission.OnJune16,2021,thecapitalverificationreport"S.G.W[2021]B062"wasissuedbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),confirmingthattheCompanyhadissued144,318,181RMBordinaryshares(Ashares)inanon-publicoffering,withanadditionalpaid-incapital(sharecapital)ofRMB144,318,181.ThetotalamountraisedwasRMB634,999,996.40;thenetamountraisedafterdeductingrelatedissuanceexpensesofRMB14,334,262.43wasRMB620,665,733.97,whichincreasedthecapitalreserve(sharecapitalpremium)byRMB476,347,552.97.Afterthisalteration,thetotalsharecapitalwasRMB705,692,507.00.TheCompanyhascompletedcorrespondingregistrationproceduresforindustrialandcommercialchangeon17September2021.
32.CapitalReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Capitalpremium(premiumonstock) | 143,990,690.24 | 476,347,552.97 | 620,338,243.21 | |
Othercapitalreserves | 20,337,975.19 | 20,337,975.19 | ||
Total | 164,328,665.43 | 476,347,552.97 | 640,676,218.40 |
Othernotes,includingchangesandreasonsthereof:Theincreaseinpremiumonstockforthecurrentperiodisshowninthepaid-incapitalstatement.
33.OtherComprehensiveIncome
Unit:RMB
Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 425,482,758.24 | 94,739,695.66 | 14,210,954.35 | 80,528,741.31 | 506,011,499.55 | |||
Ofwhich:Changescausedbyre-measurementsondefinedbenefitpensionschemes | ||||||||
Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||||||||
Changesinfairvalueofotherequityinstrumentinvestment | 425,482,758.24 | 94,739,695.66 | 14,210,954.35 | 80,528,741.31 | 506,011,499.55 | |||
Changesinfairvalueofcorporatecreditrisk | ||||||||
II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | ||||||||
Ofwhich:Shareofothercomprehensiveincomeof |
investeesthatwillbereclassifiedtoprofitorlossunderequitymethod | |||||||
Changesinfairvalueofinvestmentinotherdebtobligations | |||||||
Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | |||||||
Creditdepreciationreservesofinvestmentinotherdebtobligations | |||||||
Reservesforcashflowhedges | |||||||
Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | |||||||
Totalofothercomprehensiveincome | 425,482,758.24 | 94,739,695.66 | 14,210,954.35 | 80,528,741.31 | 506,011,499.55 |
34.SpecificReserve
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Safetyproductioncost | 18,812,986.55 | 4,023,200.24 | 4,023,236.75 | 18,812,950.04 |
Total | 18,812,986.55 | 4,023,200.24 | 4,023,236.75 | 18,812,950.04 |
35.SurplusReserves
Unit:RMB
Item | Beginningbalance | Increase | Decrease | Endingbalance |
Statutorysurplusreserves | 312,294,673.24 | 8,692,957.32 | 320,987,630.56 | |
Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
Total | 325,451,531.14 | 8,692,957.32 | 334,144,488.46 |
36.RetainedEarnings
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Beginningbalanceofretainedearningsbeforeadjustments | 777,899,079.66 | 726,689,929.10 |
Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | 1,651,336.26 | |
Beginningbalanceofretainedearningsafteradjustments | 777,899,079.66 | 728,341,265.36 |
Add:NetprofitattributabletoownersoftheCompanyastheparent | 103,006,232.54 | 52,432,443.05 |
Less:Withdrawalofstatutorysurplusreserves | 8,692,957.32 | 3,222,997.42 |
Withdrawalofdiscretionalsurplusreserves | ||
Withdrawalofgeneralreserve | ||
Dividendofordinarysharespayable | ||
Dividendsofordinarysharestransferredassharecapital | ||
RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedprofitsintheCurrentPeriod | ||
Endingretainedearnings | 872,212,354.88 | 777,899,079.66 |
Listofadjustmentofbeginningretainedearnings:
1)RMB0beginningretainedearningswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
2)RMB0beginningretainedearningswasaffectedbychangesinaccountingpolicies.
3)RMB0beginningretainedearningswasaffectedbycorrectionofsignificantaccountingerrors.
4)RMB0beginningretainedearningswasaffectedbychangesincombinationscopearisingfromsamecontrol.
5)RMB0beginningretainedearningswasaffectedtotallybyotheradjustments.
37.OperatingRevenueandCostofSales
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
Mainoperations | 2,404,119,747.06 | 2,051,932,677.42 | 2,252,479,553.51 | 1,918,486,625.85 |
Otheroperations | 48,310,768.54 | 32,739,084.66 | 43,985,157.73 | 32,087,365.42 |
Total | 2,452,430,515.60 | 2,084,671,762.08 | 2,296,464,711.24 | 1,950,573,991.27 |
Whethertheloweroftheauditednetprofitbeforeandafterdeductionofnon-recurringgainsandlossesisnegative
□Yes√NoRelevantinformationofrevenue:
Unit:RMB
Categoryofcontracts | Segment1 |
ProductTypes |
Ofwhich: | |
Single-cylinderdieselengines | 1,050,641,417.26 |
Multi-cylinderdieselengines | 1,091,284,576.58 |
Otherproducts | 181,798,390.14 |
Accessories | 80,395,363.08 |
Classifiedbybusinessarea | |
Ofwhich: | |
Salesindomesticmarket | 1,990,006,910.43 |
Exportsales | 414,112,836.63 |
Total | 2,404,119,747.06 |
Informationrelatedtoperformanceobligations:none
38.TaxesandSurtaxes
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Urbanmaintenanceandconstructiontax | 1,472,605.59 | 2,090,758.82 |
Educationsurcharge | 1,051,826.51 | 1,493,399.12 |
Propertytax | 6,157,554.67 | 4,573,282.78 |
Landusetax | 5,226,882.22 | 3,752,947.49 |
Vehicleandvesselusetax | 2,875.00 | 1,350.00 |
Stampduty | 969,210.59 | 698,047.82 |
Environmenttax | 204,133.44 | 221,775.24 |
Other | 40,860.94 | 38,047.88 |
Total | 15,125,948.96 | 12,869,609.15 |
39.SellingExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Employeebenefits | 42,968,060.55 | 38,670,632.17 |
Officeexpenses | 11,247,378.94 | 15,665,504.29 |
Salespromotionalexpense | 1,435,536.25 | 6,859,494.25 |
Threeguarantees | 60,722,393.46 | 65,108,496.52 |
Transportcharge | 320,853.84 | |
Other | 548,067.28 | 2,068,151.39 |
Total | 117,242,290.32 | 128,372,278.62 |
40.AdministrativeExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Employeebenefits | 51,646,790.82 | 54,275,945.07 |
Officeexpenses | 9,359,397.93 | 10,970,658.73 |
Depreciationandamortization | 9,925,872.31 | 10,255,597.50 |
Safetyexpenses | 4,023,200.24 | 3,766,291.74 |
Repaircharge | 1,985,784.26 | 788,498.70 |
Inventoryscrapandinventoryloss(profit) | 5,218,542.74 | |
Other | 16,730,695.92 | 7,389,204.00 |
Total | 98,890,284.22 | 87,446,195.74 |
41.DevelopmentCosts
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Directinputexpense | 49,871,973.96 | 43,808,908.87 |
Employeebenefits | 21,059,641.45 | 20,288,706.97 |
Depreciationandamortization | 4,240,194.24 | 4,534,946.69 |
Designcosts | 250,000.00 | |
Entrusteddevelopmentcharges | 5,521,861.13 | 430,000.00 |
Other | 1,446,613.36 | 3,196,218.55 |
Total | 82,390,284.14 | 72,258,781.08 |
42.FinanceCosts
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Interestexpense | 5,907,625.42 | 7,302,086.80 |
Less:Interestincome | 7,921,535.62 | 5,467,634.76 |
Netforeignexchangegainsorlosses | 3,969,634.63 | 14,491,248.00 |
Other | -752,108.63 | -557,389.72 |
Total | 1,203,615.80 | 15,768,310.32 |
43.OtherIncome
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Governmentgrantsdirectlyrecordedintothecurrentprofitorloss | 4,234,711.29 | 5,848,842.03 |
Governmentgrantsrelatedtodeferredincome | 2,364,382.20 | 1,914,373.62 |
Others | 34,238.89 | 45,516.87 |
44.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Long-termequityinvestmentincomeaccountedbyequitymethod | ||
Investmentincomefromdisposaloflong-termequityinvestment | ||
Investmentincomefromholdingoftradingfinancialassets | ||
Investmentincomefromdisposaloftradingfinancialassets | 450,637.63 | -25,036.13 |
Dividendincomefromholdingofotherequityinstrumentinvestment | 7,394,400.00 | 5,004,000.00 |
Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
Interestincomefromholdingofinvestmentindebtobligations | ||
Interestincomefromholdingofinvestmentinotherdebtobligations | ||
Investmentincomefromdisposalofinvestmentinotherdebtobligations | ||
Incomefromdebtreorganization | ||
Investmentincomefromdisposalofothernon-currentfinancialassets | -221,711.92 | 149,821.58 |
Dividendincomefromholdingofheld-for-tradingfinancialassets | 189,085.80 | |
Dividendincomefromholdingofothernon-currentfinancialassets | ||
Incomefromrefinancingbusiness | 1,028,964.68 | 433,925.05 |
Investmentincomefromfinancialproducts | 2,292,008.67 | 753,991.35 |
Forwardincomefromforeignexchangesettlement | 63,235.00 | 229,125.00 |
Accountsreceivablefinancing-discountinterestofbankacceptancebills | -1,869,322.91 | |
Total | 9,327,296.95 | 6,545,826.85 |
45.GainonChangesinFairValue
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Held-for-tradingfinancialassets | 70,820,498.36 | 200,272.00 |
Othernon-currentfinancialassets | 33,750,000.00 | 20,780,837.00 |
Total | 104,570,498.36 | 20,981,109.00 |
46.CreditImpairmentLoss
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Baddebtlossofotherreceivables | -562,856.87 | 1,498,356.99 |
Baddebtlossofaccountsreceivable | -51,454,294.95 | 880,273.69 |
Total | -52,017,151.82 | 2,378,630.68 |
47.AssetImpairmentLoss
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
I.Baddebtloss | ||
II.Lossoninventoryvaluationandcontractperformancecost | -8,676,024.20 | -11,155,930.76 |
III.Impairmentlossonlong-termequityinvestment | ||
IV.Impairmentlossoninvestmentproperty | ||
V.Impairmentlossonfixedassets | ||
VI.Impairmentlossonengineeringmaterials | ||
VII.Impairmentlossonconstructioninprogress | ||
VIII.Impairmentlossonproductivelivingassets | ||
IX.Impairmentlossonoilandgasassets | ||
X.Impairmentlossonintangibleassets | ||
XI.Impairmentlossongoodwill | ||
XII.Other | ||
Total | -8,676,024.20 | -11,155,930.76 |
48.AssetDisposalIncome
Unit:RMB
Sources | ReportingPeriod | Sameperiodoflastyear |
Disposalincomeoffixedassets | 155,515.49 | 229,121.29 |
49.Non-operatingIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Incomefromscrappingfixedassets | 5,825.24 | 5,825.24 | |
Incomefromscrappingprojectsunderconstruction | 2,089,369.81 | 2,089,369.81 | |
Incomefrompenalty | 398,143.00 | 267,439.00 | 398,143.00 |
Accountsnotrequiredtobepaid | 1,429,558.71 | 399,049.91 | 1,429,558.71 |
Other | 115,000.00 | 380,625.30 | 115,000.00 |
Total | 4,037,896.76 | 1,047,114.21 | 4,037,896.76 |
50.Non-operatingExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
Retirementlossofnon-currentassets | 22,405.72 | 34,356.44 | 22,405.72 |
Compensationforquality | 507,265.91 | 2,085,438.03 | 507,265.91 |
Donation | 250,000.00 | ||
Other | 1,107,361.42 | 260,002.86 | 1,107,361.42 |
Total | 1,637,033.05 | 2,629,797.33 | 1,637,033.05 |
51.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Currentincometaxexpense | 443,034.91 | 838,369.52 |
Deferredincometaxexpense | 15,999,671.86 | 1,247,230.81 |
Adjustmentofincometaxofprioryears | -4,073,920.19 | |
Total | 12,368,786.58 | 2,085,600.33 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
Item | ReportingPeriod |
Profitbeforetaxation | 115,300,660.95 |
Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 17,295,099.15 |
Influenceofapplyingdifferenttaxratesbysubsidiaries | 6,503,621.47 |
Influenceofincometaxbeforeadjustment | -4,073,920.19 |
Influenceofnon-taxableincome | -1,156,431.45 |
Influenceofnon-deductablecosts,expensesandlosses | 812,440.52 |
InfluenceofdeductablelossesofunrecognizeddeferredincometaxatthebeginningoftheReportingPeriod | -89,988.54 |
InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | 1,898,604.18 |
Taxpreferencefromeligibleexpenditures | -8,820,638.56 |
Incometaxexpense | 12,368,786.58 |
52.OtherComprehensiveIncomeSeeNote33fordetails.
53.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Subsidyandappropriation | 4,240,292.03 | 5,857,679.00 |
Otherintercoursesincash | 6,603,764.28 | 5,144,619.79 |
Interestincome | 7,921,535.62 | 5,467,634.76 |
Other | 3,871,134.26 | 507,167.41 |
Total | 22,636,726.19 | 16,977,100.96 |
(2)CashUsedinOtherOperatingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Sellingandadministrativeexpensepaidincash | 101,602,750.69 | 120,289,403.78 |
Handlingcharges | 1,220,112.47 | 1,776,237.12 |
Other | 15,807,386.22 | 777,383.09 |
Othertransactions | 23,381,748.58 | 690,007.30 |
Total | 142,011,997.96 | 123,533,031.29 |
(3)CashGeneratedfromOtherInvestingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Depositofconstructionunit | 336,150.00 | |
Total | 336,150.00 |
(4)CashUsedinOtherInvestingActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Projectmargin | 4,141,850.71 | |
Accountsreceivablefinancing-discountinterestfrombankacceptancebills | 1,869,322.91 | |
Total | 1,869,322.91 | 4,141,850.71 |
(5)CashGeneratedfromOtherFinancialActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Discountofunduebankacceptancebillswithlowcreditrating | 58,971,466.65 | |
Total | 58,971,466.65 |
(6)CashUsedinOtherFinancialActivities
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Intermediaryagencyfeesforprivateplacement | 10,849,056.61 | 2,500,000.00 |
Discountinterestfrombankacceptancebills | 3,772,107.02 | |
Total | 14,621,163.63 | 2,500,000.00 |
54.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
Netprofit | 102,931,874.37 | 52,294,751.19 |
Add:Provisionforimpairmentofassets | 60,693,176.02 | 8,777,300.08 |
Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 76,128,177.44 | 80,616,241.38 |
Depreciationofright-of-useassets | ||
Amortizationofintangibleassets | 4,711,649.34 | 5,129,822.75 |
Amortizationoflong-termdeferredexpenses | 17,605.33 | 39,804.60 |
Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -155,515.49 | -229,121.29 |
Lossesonthescrappingoffixedassets(gainsby“-”) | -2,072,789.33 | 34,356.44 |
Lossesonthechangesinfairvalue(gainsby“-”) | -104,570,498.36 | -20,981,109.00 |
Financialexpenses(gainsby“-”) | 8,122,828.51 | 16,911,546.38 |
Investmentlosses(gainsby“-”) | -9,327,296.95 | -6,545,826.85 |
Decreaseindeferredincometaxassets(increaseby“-”) | -6,461,936.08 | -3,208,010.11 |
Increaseindeferredincometaxliabilities(decreaseby“-”) | 22,461,607.94 | 4,455,240.92 |
Decreaseininventory(increaseby“-”) | -53,079,441.83 | -144,477,102.41 |
Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -286,670,314.47 | 16,892,902.36 |
Increaseinpayablesfromoperatingactivities(decreaseby“-”) | -79,052,905.74 | 278,992,494.07 |
Other | -36,906,635.98 | |
Netcashflowsgeneratedfromoperatingactivities | -266,323,779.30 | 251,796,654.53 |
2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | ||
Debttransferredascapital | ||
Convertiblecorporatebondduewithinoneyear | ||
Fixedassetsfromfinancinglease | ||
3.Netincreaseincashandcashequivalents | ||
Endingbalanceofcash | 562,402,221.59 | 629,939,540.50 |
Less:Beginningbalanceofcash | 629,939,540.50 | 545,959,998.20 |
Add:Endingbalanceofcashequivalents | ||
Less:Beginningbalanceofcashequivalents | ||
Netincreaseincashandcashequivalents | -67,537,318.91 | 83,979,542.30 |
(2)CashandCashEquivalents
Unit:RMB
Item | Endingbalance | Beginningbalance |
I.Cash | 562,402,221.59 | 629,939,540.50 |
Including:Cashonhand | 145,594.98 | 287,505.91 |
Bankdepositondemand | 561,746,767.12 | 620,966,786.57 |
Othermonetaryassetsondemand | 509,859.49 | 8,685,248.02 |
Accountsdepositedinthecentralbankavailableforpayment | ||
Depositsinotherbanks | ||
Accountsofinterbank | ||
II.Cashequivalents | ||
Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
III.Endingbalanceofcashandcashequivalents | 562,402,221.59 | 629,939,540.50 |
Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
55.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
Item | Endingcarryingvalue | Reasonforrestriction |
Monetaryassets | 145,564,457.15 | Ascashdepositforbankacceptancebillandforenvironment |
Housesandbuildings | 1,760,577.22 | Mortgagedforborrowingsfrombanks |
Landuseright | 911,388.42 | Mortgagedforborrowingsfrombanks |
Machineryequipment | 30,560,526.26 | Mortgagedforborrowingsfrombanks |
Obligationtopaybillsdiscountedbeforematurity | 61,971,466.65 | |
Unduetransferredbillpaymentobligation | 72,391,302.15 | |
Total | 313,159,717.85 |
56.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
Monetaryassets | -- | -- | |
Ofwhich:USD | 16,223,008.73 | 6.3757 | 103,433,038.04 |
EUR | |||
HKD | 285,401.45 | 0.8176 | 233,344.23 |
SGD | 54,427.95 | 4.7179 | 256,785.63 |
Accountsreceivable | -- | -- | |
Ofwhich:USD | 10,773,556.74 | 6.3757 | 68,688,965.83 |
GBP | -67,212.27 | 8.6064 | -578,455.68 |
Accountspayable | |||
Ofwhich:USD | 302.60 | 6.3757 | 1,929.29 |
Contractliabilities | |||
Ofwhich:USD | 784,613.15 | 6.3757 | 5,002,458.10 |
EUR | 117,145.84 | 7.2197 | 845,757.83 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
57.GovernmentGrants
(1)BasicInformationonGovernmentGrants
Unit:RMB
Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
Industrialandinformationindustrytransformationandupgradingsubsidies | 70,000.00 | Otherincome | 70,000.00 |
Projectfundforthefirstpurchaseofspecialinnovativeproductsforindustrialhigh-qualitydevelopmentandapplicationpromotion | 200,000.00 | Otherincome | 200,000.00 |
ChangzhouindustrialInternetspecialfund | 100,000.00 | Otherincome | 100,000.00 |
SubsidyforChangzhouStrongQualityCityAward | 100,000.00 | Otherincome | 100,000.00 |
Subsidyforstabilizingposts | 61,713.39 | Otherincome | 61,713.39 |
Businessdevelopmentfund | 693,000.00 | Otherincome | 693,000.00 |
DiscountinterestforloansfromFinanceBureauforScienceandTechnologyAchievementTransformationFundProject | 1,391,000.00 | Otherincome | 1,391,000.00 |
BenniuTown2020GasBoilerLowNitrogenCombustionReconstructionSubsidy | 20,000.00 | Otherincome | 20,000.00 |
Specialfundforhigh-qualitydevelopment | 37,000.00 | Otherincome | 37,000.00 |
Taxcontributionaward | 20,000.00 | Otherincome | 20,000.00 |
Fundingforthefirstyearofthedemonstrationbasefortrainingadvancedskilledpersonnel | 30,000.00 | Otherincome | 30,000.00 |
Subsidiesfortrainingbywork | 468,621.90 | Otherincome | 468,621.90 |
Epidemicsubsidy | 100,000.00 | Otherincome | 100,000.00 |
Post-doctoralgrants,outboundawardsandsiteestablishmentawards | 120,000.00 | Otherincome | 120,000.00 |
Financialcentersubsidy | 240,376.00 | Otherincome | 240,376.00 |
Innovation-drivenrewards | 30,000.00 | Otherincome | 30,000.00 |
SubsidyfundofNewDistrictFinanceBureauaward | 13,000.00 | Otherincome | 13,000.00 |
SubsidyfundofNewDistrictFinanceBureauaward | 540,000.00 | Otherincome | 540,000.00 |
Relocationcompensation(replaceZouVillagewithHehaiRoad | 13,344,397.90 | Deferredincome | 267,333.48 |
Relocationcompensation-MainworkshopofHehaiRoadBase | 11,864,289.02 | Deferredincome | 398,640.14 |
Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengine | 13,800,000.00 | Deferredincome | 759,633.00 |
AppropriationorresearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 10,000,000.00 | Deferredincome | 938,775.58 |
Total | 53,243,398.21 | 6,599,093.49 |
ReturnofGovernmentGrants
√Applicable□Notapplicable
Item | Amount | Reason |
Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengine | 14,770,000.00 | SeeNote30fordetails |
VIII.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
Directly | Indirectly | |||||
ChangchaiWanzhouDieselEngineCo.,Ltd. | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Changzhou | Changzhou | Industry | 99.00% | 1.00% | Set-up |
ChangzhouHorizonInvestmentCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up | |
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Changzhou | Changzhou | Industry | 70.00% | 25.00% | Set-up |
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Combinationnotunderthesamecontrol | |
JiangsuChangchaiMachineryCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
ChangzhouXingshengPropertyManagementCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up |
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 154,626.91 | 19,966,486.37 | |
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 5.00% | -228,985.08 | -542,255.39 |
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. | 48,200,342.77 | 24,141,889.90 | 72,342,232.67 | 22,426,016.75 | 22,426,016.75 | 49,267,159.00 | 25,044,012.17 | 74,311,171.17 | 24,781,522.52 | 24,781,522.52 | ||
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 14,505,888.53 | 324,302.84 | 14,830,191.37 | 25,675,299.17 | 25,675,299.17 | 26,356,205.03 | 423,493.77 | 26,779,698.80 | 33,045,105.00 | 33,045,105.00 |
Unit:RMB
Name | ReportingPeriod | Sameperiodoflastyear | ||||||
Operatingrevenue | Netprofit | Totalcomprehensive | Cashflowsfrom | Operatingrevenue | Netprofit | Totalcomprehensive | Cashflowsfrom |
income | operatingactivities | income | operatingactivities | |||||
ChangchaiWanzhouDieselEngineCo.,Ltd. | 42,629,379.24 | 386,567.27 | 386,567.27 | 2,563,679.17 | 43,143,296.52 | 494,776.84 | 494,776.84 | 2,183,407.36 |
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 14,362,872.77 | -4,579,701.60 | -4,579,701.60 | 6,216,842.70 | 14,280,066.47 | -6,712,052.03 | -6,712,052.03 | -171,680.44 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018and3December2020,newpartnerswereadded.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhu,TongYinxinandAnhuiHaiyunzhouEquityInvestmentPartnershipEnterprise(Limited).InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.
IX.TheRiskRelatedtoFinancialInstruments
ThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRiskCreditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.
TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.(II)LiquidityRiskLiquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.(III)MarketRiskMarketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,includingforeignexchangeraterisk,interestraterisk.
1.InterestRateRiskInterestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRiskForeignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.X.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
Item | Endingfairvalue | |||
Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
1.Tradingfinancialassets | 121,940,343.76 | 282,112,917.81 | 404,053,261.57 | |
(I)Financialassetsatfairvaluethroughprofitorloss | 121,940,343.76 | 282,112,917.81 | 404,053,261.57 | |
(1)Equityinstrumentinvestment | 121,940,343.76 | 121,940,343.76 | ||
(2Financialinvestment | 282,112,917.81 | 282,112,917.81 | ||
2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrent |
profitorloss | ||||
(1)Debtinstrumentinvestment | ||||
(2)Equityinstrumentinvestment | ||||
(II)Otherbondinvestment | ||||
(III)Otherequityinstrumentinvestment | 633,502,000.00 | 146,375,646.53 | 779,877,646.53 | |
(IV)Investmentproperty | ||||
1.Landuserightforlease | ||||
2.Buildingsleasedout | ||||
3.Landuserightheldandplannedtobetransferredonceappreciating | ||||
(V)Livingassets | ||||
1.Consumptivelivingassets | ||||
2.Productivelivingassets | ||||
Receivablesfinancing | 497,388,826.02 | 497,388,826.02 | ||
Othernon-currentfinancialassets | 112,500,000.00 | 112,500,000.00 | ||
Totalassetsconsistentlymeasuredbyfairvalue | 755,442,343.76 | 282,112,917.81 | 756,264,472.55 | 1,793,819,734.12 |
(VI)Tradingfinancialliabilities | ||||
Ofwhich:Issuedtradingbonds | ||||
Derivativefinancialliabilities | ||||
Other | ||||
(VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
(1)Assetsheldforsale | ||||
Totalassetsinconsistentlymeasuredbyfairvalue | ||||
Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Thecompanyshallusetheclosingpriceofthetradingmarketonthebalancesheetdateasthebasisforthefairvaluemeasurementofthestocksofthelistedcompanyheldinthetradingfinancialassetsmeasuredatfairvalue.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Financialinvestment:Thebasicassetsoffinancialproductsincludebondassets,depositassets,fundassets,etc.Theportfolioofinvestmentisdynamicallymanaged,andthefairvalueoffinancialproductsisadjustedaccordingtothereturnrateofsimilarproductsprovidedbythecounterparty.
4.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)Receivablesfinancing:Receivablesfinancingreferstobankacceptancebillswithhighcreditrating,thisitemfeatureswithshorttermandlowrisk,andtheparvalueisclosetothefairvalue,sotheparvalueisadoptedasthefairvalue.
(2)Othernon-currentfinancialassets:fortheinvestmentsinequityinstrumentofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,JiangsuHorizonNewEnergyTechnologyCo.,Ltd.entrustedanappraisalagencytoevaluatethevalueofallitsshareholders’equityduetotheneedforcapitalincreaseandshareexpansionin2021,andconfirmedthepremiumrateofcapitalincreasebasedontheappreciationrateoftheequityvalue.Thecompany’snewinvestorssignedtheinvestmentagreementsrespectivelyinJune2021andDecember2021.Therefore,thefairvalueoftheequityinvestmenthadbeenadjustedandconfirmedaccordinglybasedonthepremiumrateofcapitalincreasefromnewinvestors.
(3)Amongotherequityinvestmentinstruments,thetotalinvestmentinChengduChangwanDieselEngineDistributionCo.,Ltd.,ChongqingWanzhouChangwanDieselEnginePartsCo.,Ltd.,ChangzhouEconomicandTechnologicalDevelopmentCompany,ChangzhouTractorCompany,ChangzhouEconomicCommissionIndustrialCapitalMutualAidAssociation,BeijingEngineeringMachineryAgriculturalMachineryCompanywasRMB1.21million,andthefairvaluewasRMB0.00duetothedifficultyinrecoveringtheinvestment.SinceitsestablishmentinOctober2017,ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)hasinvestedinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,andthechangeinfairvalueofthecompany'sequityheldbyithadincreasedtheequityofpartnersattheendoftheyear.Inaddition,thecompany'sbusinessenvironment,operatingconditions,andfinancialstatushadnotundergonemajorchanges.Therefore,thecompanydetermineditsfairvalueonthebasisofthenetbookassetsofthepartnershipattheendoftheperiod.
5.SensitivenessAnalysisonUnobservableParametersandAdjustmentInformationbetweenBeginningandEndingCarryingValueofConsistentFairValueMeasurementItemsatLevel3Notapplicable
6.ExplaintheReasonforConversionandtheGoverningPolicywhentheConversionHappensifConversionHappensamongConsistentFairValueMeasurementItemsatDifferentLevelsNotapplicable
7.ChangesintheValuationTechniqueintheCurrentPeriodandtheReasonforSuchChangesNotapplicable
8.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValueThefinancialassetsandliabilitiesmeasuredatamortizationcostmainlyincludenotesreceivable,accountsreceivable,otherreceivables,short-termborrowings,accountspayable,otherpayables,etc.Thedifferencebetweenthecarryingvalueandfairvalueforfinancialassetsandliabilitiesnotmeasuredatfairvalueissmall.
9.OtherDuringtheyear,therewasnoconversionbetweenLevel1andLevel2,norwasthereanytransfertoorfromLevel3forthefairvaluemeasurementoftheCompany'sfinancialassetsandfinancialliabilities.
XI.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc. | RMB1.2billion | 32.26% | 32.26% |
Notes:InformationontheCompanyastheparent
TheparentcompanyoftheenterpriseisChangzhouInvestmentGroupCo.,Ltd.,whichisawholly-ownedsubsidiaryofChangzhouMunicipalPeople'sGovernment.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),boththeCompanyandChangzhouInvestmentGroupCo.,Ltd.areenterpriseswhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,afterthesharertransfer,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteVIIIfordetails.
3.InformationonOtherRelatedParties
Name | RelationshipwiththeCompany |
ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
DonghaiSecuritiesCo.,Ltd. | ControlledbythesameCompanyastheparent |
4.Related-partyTransactions
(1)OtherRelated-partyTransaction
1)On28June2020,the3rdMeetingofthe9thBoardofDirectorsapprovedtheProposalonSignatureofJointSponsorshipUnderwritingAgreementofthePrivatePlacementofAsharesandRelated-partyTransaction,whichallowedtheCompanysigningthejointsponsorshipunderwritingagreementwithIndustrialSecuritiesCo.,Ltd.(hereinafterreferredtoas“IndustrialSecurities”)andDonghaiSecuritiesCo.,Ltd.(hereinafterreferredtoas“DonghaiSecurities”),andappointingIndustrialSecuritiesandDonghaiSecuritiesastheco-sponsorunderwritersfortheprivateplacementofAsharesoftheCompanywithsponsorfeeofRMB3milliontoIndustrialSecuritiesandDonghaiSecuritiesandtheunderwritingfeeofnomorethanRMB11million(inclusiveofRMB11million).Asof31December2021,theCompanyhaspaidasponsorshipfeeofRMB1.5million(ofwhich,RMB0.75millionwaspaidin2021andRMB0.75millionwaspaidin2020)toDonghaiSecuritiesandpaidanunderwritingfeeofRMB6.5million(paidin2021).Allistax-inclusive.
2)TheProposalonUsingIdleFundstoPurchaseWealthManagementProductswasdeliberatedandapprovedattheFourthInterimMeetingoftheBoardofDirectorsin2021andtheSecondInterimMeetingoftheBoardofSupervisorsin2021heldbytheCompanyon13July2021,allowingtheCompanyanditswholly-ownedsubsidiariestousenomorethanRMB350millionofidleraisedfundstopurchasewealthmanagementproductsforcashmanagementonthepremisethattheinvestmentprojectswithraisedfundsarecarriedoutnormallyandtheuseofraisedfundsisnotaffected.On27July2021,theCompanyenteredintoasubscriptionagreementwithDonghaiSecuritiesCo.,Ltd.fortheproduct"DonghaiSecuritiesLongGainReturnCertificateJuneTypeCustomizedIssueNo.13".ThesubscriptionamountisRMB50million,andthesourceoffundsisidleraisedfunds.Thereturncertificatematuredon25
January2022,withatotalofRMB50,949,315.07inprincipalandreturnactuallyreceived,whichisrecognizedasgainsonchangesoffairvalueofRMB817,465.75in2021.XII.StockPayment
1.TheOverallSituationofStockPayment
□Applicable√Notapplicable
2.TheStockPaymentSettledinEquity
□Applicable√Notapplicable
3.TheStockPaymentSettledinCash
□Applicable√Notapplicable
4.ModificationandTerminationoftheStockPaymentNone
XIII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof31December2021,therewasnosignificantcommitmentfortheCompanytodisclose.
2.ContingencyApprovedonthe8
thMeetingofthe9
thBoardofDirectorsheldon13April2021,theCompanyprovidedaguaranteeforthecreditgrantedtothesubsidiaryHorizonAgriculturalEquipmentbyICBCnotexceedingRMB20million,whichwasalsoapprovedontheCompany’sAnnualGeneralMeetingofShareholdersin2020.Asof31December2021,theCompanyprovidedaguaranteefortheshort-termborrowingsofRMB5millionofthesubsidiaryHorizonAgriculturalEquipment.
XIV.EventsafterBalanceSheetDate
1.ProfitDistribution
Unit:RMB
Profitsordividendstobedistributed | 18,348,005.18 |
2.SalesReturnNone
3.NotestoOtherEventsafterBalanceSheetDateTheSixthInterimMeetingoftheBoardofDirectorsin2021heldbytheCompanyon28October2021deliberatedonandapprovedtheProposalonParticipatinginthePublicListedTransferof41.5%EquityInterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,authorizingtheManagementoftheCompanytoparticipateinthebiddingofthepubliclistedtransferbyJiangsuUniversityofScienceandTechnologyAssetsManagementCo.,Ltd.(hereinafterreferredtoas"ScienceUniversityAssets")ofits41.5%equityinterestinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.(hereinafterreferredtoas"ZhenjiangSiyang").On1January2022,ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.IssuedtheConfirmationofTransactionontheTransferof41.5%EquityInterest(CorrespondingtoCapitalContributionofRMB830,000).TheCompanywonthe41.5%equityinterestinZhenjiangSiyangatapriceofRMB33,520,800.00asofFebruary2022.On23February2022,theCompanysignedtheContractonTransferofState-ownedPropertyRightswithScienceUniversityAssets.On9March2022,ZhenjiangSiyanghascompletedthebusinesschangeregistration.
XV.OtherSignificantEvents
1.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegmentDuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommonmanagement,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
2.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-makingNone
XVI.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
Category | Endingbalance | Beginningbalance | ||||||||
Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
Accounts | 27,50 | 6.00% | 21,12 | 76.80 | 6,383, | 33,54 | 7.29% | 31,647 | 94.35 | 1,895,5 |
receivableforwhichbaddebtprovisionseparatelyaccrued | 9,745.33 | 6,658.85 | % | 086.48 | 3,441.92 | ,855.09 | % | 86.83 | ||
Ofwhich: | ||||||||||
Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 430,771,912.03 | 94.00% | 88,019,743.09 | 20.43% | 342,752,168.94 | 426,300,279.29 | 92.71% | 110,367,704.87 | 25.89% | 315,932,574.42 |
Ofwhich: | ||||||||||
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 430,771,912.03 | 94.00% | 88,019,743.09 | 20.43% | 342,752,168.94 | 426,300,279.29 | 92.71% | 110,367,704.87 | 25.89% | 315,932,574.42 |
Total | 458,281,657.36 | 100.00% | 109,146,401.94 | 23.82% | 349,135,255.42 | 459,843,721.21 | 100.00% | 142,015,559.96 | 30.88% | 317,828,161.25 |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod:
Unit:RMB
Name | Endingbalance | |||
Carryingamount | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
Customer2 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
Customer4 | 2,797,123.26 | 2,194,980.28 | 78.47% | Expectedtodifficultlyrecover |
Customer5 | 3,633,081.23 | 2,122,165.73 | 58.41% | Expectedtodifficultlyrecover |
Customer6 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer7 | 1,523,110.59 | 1,523,110.59 | 100.00% | Difficulttorecover |
Customer8 | 1,511,937.64 | 302,387.53 | 20.00% | Difficulttorecover |
Customer9 | 3,780,509.60 | 720,031.71 | 19.05% | Difficulttorecover |
Total | 25,418,668.01 | 19,035,581.53 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup
Unit:RMB
Name | Endingbalance | ||
Carryingamount | Baddebtprovision | Withdrawalproportion | |
Within1year | 329,625,991.33 | 6,592,519.83 | 2.00% |
1to2years | 17,473,471.22 | 873,673.56 | 5.00% |
2to3years | 1,426,271.10 | 213,940.67 | 15.00% |
3to4years | 709,597.16 | 212,879.15 | 30.00% |
4to5years | 3,524,628.34 | 2,114,777.00 | 60.00% |
Over5years | 78,011,952.88 | 78,011,952.88 | 100.00% |
Total | 430,771,912.03 | 88,019,743.09 | -- |
Notestothebasisforthedeterminationofthegroups:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsoccurredactually,amongwhichtheaccountsoccurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Carryingamount |
Within1year(including1year) | 333,949,213.59 |
1to2years | 17,473,471.22 |
2to3years | 3,514,160.19 |
Over3years | 103,344,812.36 |
3to4years | 2,659,346.72 |
4to5years | 6,048,418.09 |
Over5years | 94,637,047.55 |
Total | 458,281,657.36 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
Withdrawal | Reversalorrecovery | Write-off | Other | |||
Baddebtprovisionwithdrawnseparately | 31,647,855.09 | 1,315,924.00 | 147,611.25 | 11,689,508.99 | 21,126,658.85 |
Baddebtprovisionwithdrawnbygroup | 110,367,704.87 | 1,595,171.86 | 23,943,133.64 | 88,019,743.09 | ||
Total | 142,015,559.96 | 2,911,095.86 | 147,611.25 | 35,632,642.63 | 109,146,401.94 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)AccountsReceivablewithActualVerificationduringtheReportingPeriod
Unit:RMB
Item | Amountverified |
Accountsreceivablewithactualverification | 35,632,642.63 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
Nameoftheentity | Nature | Amountverified | Reason | Performanceofverificationprocedures | Whethergeneratedfromrelated-partytransaction |
Customer1 | Loanreceivables | 997,047.83 | Theaccountageofthedebtorismorethan5years,andthedebtorhasnoassetstopayoffduetothecancellationordebtrestructuringoftheotherparty,bankruptcyliquidationorjudiciallitigation. | TheCompanyheldthe10thMeetingofthe9thBoardofDirectorsandthe10thMeetingofthe9thSupervisoryCommitteeon16August2021andapprovedtheProposalonVerificationofSomeAccountsReceivable. | Not |
Customer2 | 516,384.40 | ||||
Customer3 | 5,359,381.00 | ||||
Customer4 | 5,309,605.00 | ||||
Customer5 | 3,662,926.13 | ||||
Customer6 | 3,279,100.00 | ||||
Customer7 | 2,295,898.35 | ||||
Customer8 | 1,617,988.01 | ||||
Customer9 | 707,050.39 | ||||
Customer10 | 612,001.02 | ||||
Customer11 | 583,558.66 | ||||
Customer12 | 533,146.26 | ||||
Total | 25,474,087.05 | -- | -- | -- |
(4)Top5oftheEndingBalanceofAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
Customer1 | 174,635,898.30 | 38.11% | 3,492,717.97 |
Customer2 | 64,375,015.92 | 14.05% | 1,287,500.32 |
Customer3 | 37,370,796.27 | 8.15% | 747,415.93 |
Customer4 | 18,082,456.14 | 3.95% | 361,649.12 |
Customer5 | 8,152,568.83 | 1.78% | 163,051.38 |
Total | 302,616,735.46 | 66.04% |
2.OtherReceivables
Unit:RMB
Item | Endingbalance | Beginningbalance |
Otherreceivables | 26,497,081.34 | 24,327,355.36 |
Total | 26,497,081.34 | 24,327,355.36 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
Nature | Endingcarryingamount | Beginningcarryingamount |
CashdepositandMargin | 4,200.00 | 4,200.00 |
Intercoursefundsamongunits | 55,450,919.93 | 39,857,085.87 |
Pettycashandborrowingsbyemployees | 613,410.65 | 673,198.96 |
Other | 13,629,784.64 | 13,614,585.00 |
Total | 69,698,315.22 | 54,149,069.83 |
2)WithdrawalofBadDebtProvision
Unit:RMB
Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
Balanceof1January2021 | 29,821,714.47 | 29,821,714.47 | ||
Balanceof1January2021intheCurrentPeriod | —— | —— | —— | —— |
--TransfertoSecondstage | -24,494,613.09 | 24,494,613.09 | -24,494,613.09 | |
--TransfertoThirdstage | -5,039,368.41 | 5,039,368.41 | -5,039,368.41 | |
--ReversetoSecondstage | ||||
--ReversetoFirststage | ||||
WithdrawaloftheCurrentPeriod | 14,143,241.36 | 14,143,241.36 | ||
ReversaloftheCurrentPeriod | 78,119.44 | 685,602.51 | 763,721.95 | |
Write-offsoftheCurrentPeriod |
VerificationoftheCurrentPeriod | ||||
Otherchanges | ||||
Balanceof31December2021 | 209,613.53 | 23,809,010.58 | 19,182,609.77 | 43,201,233.88 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
Aging | Carryingamount |
Within1year(including1year) | 37,544,101.26 |
1to2years | 2,067,489.45 |
2to3years | 116,820.58 |
Over3years | 29,969,903.93 |
3to4years | 392,301.53 |
4to5years | 1,113,086.11 |
Over5years | 28,464,516.29 |
Total | 69,698,315.22 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
Withdrawal | Reversalorrecovery | Write-off | Other | |||
Baddebtprovisionwithdrawnseparately | 5,039,368.41 | 14,143,241.36 | 19,182,609.77 | |||
Baddebtprovisionwithdrawnbygroup | 24,782,346.06 | 763,721.95 | 24,018,624.11 | |||
Total | 29,821,714.47 | 14,143,241.36 | 763,721.95 | 43,201,233.88 |
4)ParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod:None.
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 13,468,418.86 | Within1yearwithRMB11,668,418.86,1-2yearswithRMB18billion | 19.32% | 13,468,418.86 |
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Intercoursefunds | 9,000,000.00 | Within1year | 12.91% | 180,000.00 |
ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 4.22% | 2,940,000.00 |
ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 4.09% | 2,853,188.02 |
ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 2.33% | 1,626,483.25 |
Total | -- | 29,888,090.13 | 42.88% | 21,068,090.13 |
6)DerecognitionofOtherReceivablesduetotheTransferofFinancialAssets:none
7)TheAmountoftheAssetsandLiabilitiesFormedduetotheTransferandtheContinuedInvolvementofOtherReceivables:none
3.Long-termEquityInvestment
Unit:RMB
Item | Endingbalance | Beginningbalance | ||||
Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
Investmenttosubsidiaries | 542,752,730.03 | 7,000,000.00 | 535,752,730.03 | 382,752,730.03 | 7,000,000.00 | 375,752,730.03 |
Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
Total | 542,796,912.53 | 7,044,182.50 | 535,752,730.03 | 382,796,912.53 | 7,044,182.50 | 375,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
Investee | Beginning | Increase/decrease | Ending | Ending |
balance(carryingvalue) | Additionalinvestment | Reducedinvestment | Withdrawalofdepreciationreserve | Other | balance(carryingvalue) | balanceofdepreciationreserve | |
ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | |||||
ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | |||||
ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | 40,000,000.00 | |||||
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 0.00 | 0.00 | 7,000,000.00 | ||||
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||||
JiangsuChangchaiMachineryCo.,Ltd. | 140,000,000.00 | 160,000,000.00 | 300,000,000.00 | ||||
ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
Total | 375,752,730.03 | 160,000,000.00 | 535,752,730.03 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
II.Associatedenterprises | |||||||||||
BeijingTsinghuaXingyeIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 0.00 | 44,182.50 | ||||||||
Subtotal | 0.00 | 0.00 | 44,182.50 | ||||||||
Total | 0.00 | 0.00 | 44,182.50 |
4.OperatingRevenueandCostofSales
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear | ||
Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
Mainoperations | 2,221,914,222.25 | 1,913,817,106.36 | 2,086,035,553.15 | 1,794,202,913.98 |
Otheroperations | 45,317,897.53 | 31,003,356.23 | 37,164,684.96 | 29,240,490.81 |
Total | 2,267,232,119.78 | 1,944,820,462.59 | 2,123,200,238.11 | 1,823,443,404.79 |
Informationonrevenue:
Unit:RMB
Categoryofcontracts | Segment1 |
ProductTypes | |
Ofwhich: | |
Single-cylinderdieselengines | 1,053,647,263.06 |
Multi-cylinderdieselengines | 1,091,284,576.58 |
Otherproducts | 36,122,588.06 |
Accessories | 40,859,794.55 |
Classifiedbybusinessarea | |
Ofwhich: | |
Salesindomesticmarket | 1,898,433,419.02 |
Exportsales | 323,480,803.23 |
Total | 2,221,914,222.25 |
Informationrelatedtoperformanceobligations:None
5.InvestmentIncome
Unit:RMB
Item | ReportingPeriod | Sameperiodoflastyear |
Dividendincomefromholdingofotherequityinstrumentinvestment | 7,394,400.00 | 5,004,000.00 |
Incomefromtransferringtoaccommodationbusiness | 1,028,964.68 | 433,925.05 |
Investmentincomefromdisposalofheld-for-tradingfinancialassets | 1,798,672.49 | |
Accountsreceivablefinancing-discountinterestofbankacceptancebills | -1,869,322.91 | |
Total | 8,352,714.26 | 5,437,925.05 |
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
Item | Amount | Note |
Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 155,515.49 |
Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 4,268,950.18 | |
Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andavailable-for-salefinancialassets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 114,738,153.54 | IncreaseinthefairvalueoftheequityofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andGuilinStarsScienceandTechnologyCo.,Ltd.heldbytheCompany’swholly-ownedsubsidiaryHorizonInvestmentandtheequityofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.heldbytheCompanyduringtheReportingPeriod |
Impairmentofreceivablestestedseparatelyisreadytoberolledback | 147,611.25 | |
Othernon-operatingincomeandexpensesotherthantheabove | 2,400,863.71 | |
Less:Incometaxeffects | 24,027,164.56 | |
Non-controllinginterestseffects(aftertax) | 6,789.94 | |
Total | 97,677,139.67 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
EPS-basic | EPS-diluted | ||
NetprofitattributabletoordinaryshareholdersoftheCompany | 3.86% | 0.1657 | 0.1657 |
NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 0.20% | 0.0086 | 0.0086 |
TheBoardofDirectorsChangchaiCompany,Limited
13April2022