CHANGCHAICOMPANY,LIMITED
INTERIMREPORT2022
August2022
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.Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredaspromisestoinvestors.Investorsandotherstakeholdersshallbesufficientlyawareoftheriskandshalldifferentiatebetweenplans/forecastsandpromises.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIBusinessSummary ...... 9
PartIVCorporateGovernance ...... 32
PartVEnvironmentalandSocialResponsibility ...... 33
PartVISignificantEvents ...... 35
PartVIIShareChangesandShareholderInformation ...... 44
PartVIIIPreferredShares ...... 52
PartIXBonds ...... 53
PartXFinancialStatements ...... 54
DocumentsAvailableforReference(I)ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment(accountantincharge).(II)TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonthewebsitedesignatedbytheCSRCduringtheReportingPeriod.(III)TheInterimReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.ThisInterimReporthasbeenpreparedinbothChineseandEnglish.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. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
| ZhenjiangSiyang | ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2022to30June2022 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr.(ifany) | 苏常柴 | ||
| CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
| Abbr.(ifany) | CHANGCHAICO.,LTD. | ||
| Legalrepresentative | ShiXinkun | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | HeJianjiang | |
| Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
| Tel. | （86）519-68683155 | |
| Fax | （86）519-86630954 | |
| Emailaddress | cchjj@changchai.com |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2021AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfor
disclosingtheCompany’speriodicreportsandtheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2021AnnualReport.
3.OtherRelevantInformationIndicatebytickmarkwhetheranychangeoccurredtootherrelevantinformationintheReportingPeriod.
□Applicable√Notapplicable
IVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.?Yes√No
| H12022 | H12021 | Change(%) | |
| Operatingrevenue(RMB) | 1,178,222,492.04 | 1,497,170,455.80 | -21.30% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | -14,595,269.61 | 129,189,065.60 | —— |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | -5,809,360.07 | 27,160,414.58 | —— |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -74,300,501.12 | -92,554,120.06 | —— |
| Basicearningspershare(RMB/share) | -0.0207 | 0.2301 | —— |
| Dilutedearningspershare(RMB/share) | -0.0207 | 0.2301 | —— |
| Weightedaveragereturnonequity(%) | -0.48% | 5.51% | -5.99% |
| 30June2022 | 31December2021 | Change(%) | |
| Totalassets(RMB) | 4,956,058,838.71 | 4,860,382,961.26 | 1.97% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 2,994,802,512.99 | 3,077,550,018.33 | -2.69% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.VIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | -361,395.36 | |
| Governmentgrantsthroughprofitorloss(exclusiveofgovernmentgrantsconsistentlygivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernmentalpoliciesorstandards) | 1,602,830.77 | |
| Gainorlossonfair-valuechangesonheld-for-tradingfinancialassetsandliabilities&incomefromdisposalofheld-for-tradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -19,744,106.00 | Decreaseinthefairvalueofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,KailongHighTechnologyCo.,Ltd.,andGuilinStarsScienceandTechnologyCo.,Ltd. |
| Non-operatingincomeandexpenseotherthantheabove | 1,957,639.94 | |
| Less:Incometaxeffects | -7,756,677.28 | |
| Non-controllinginterestseffects(netoftax) | -2,443.83 | |
| Total | -8,785,909.54 |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod
1.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"ChangchaiRobin".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&DmodelWehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedon
marketdemandandforward-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.IndustryFactsWeareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasagricultureandengineeringrepresentedbytractors,plantprotectionmachinery,andsmallconstructionmachinery.
(1)DevelopmentpatternandtrendoftheindustryChina'sdieselengineandgasolineengineindustriespresentapatternofmultiplecompetitions.Asthestateadopts
increasinglystrictenvironmentalprotectionpolicyandtheemissionstandardscontinuetoupgrade,especiallyasChinaVIemissionregulationsforgasolineenginesandChinaIVemissionregulationsfornon-roadmobilemachinerydieselenginesareorwillbeimplemented,thecoretechnologyandkeypartsofinternalcombustionengineswillberapidlydevelopedandapplied,andtheresearch,development,promotingandapplicationofenvironmentallyfriendlyandefficientdieselenginesandgasolineengineswillbecomethemainstreamtrend,whichpromotesthewideuseofthefuelinjectionsystem,high-efficiencysuperchargerandhigh-efficiencyafter-treatment.Inthenewnormal,theinternalcombustionengineindustryandagriculturalmachineryindustrywillimprovetheindustry'scapabilityofindependentinnovation,supportthewholemachinedevelopment,andorganizeandimplementgreenmanufacturingandintelligentmanufacturing,soastoimprovetheoverallstrengthoftheindustry.Themarketshareofdieselandgasolineenginesisgraduallyconcentratedinafewlarge-scaleenterpriseswithtechnicalandcapitalstrength.Currently,theagriculturalmachineryindustryismovingtowardsslowingdowndevelopmentspeedandincreasingdevelopmentquality,upgradingandtransformation,aswellasshoringupweakspots.Thepresentdevelopmenttrendofinternalcombustionengineindustryisasfollows:(1)energysavingandemissionreduction;(2)intelligentmanufacturing;(3)lightweight.Medium-andlow-endinternalcombustionengineswithlowtechnicalcontentandlowaddedvaluewillbegraduallysqueezedoutofthemarket.Theupgradeofemissionstandardsandthemarket'sdemandforhigh-endproductswilleliminatethosesmallenterpriseswithlowlevelofresearchanddevelopmentorlesstechnologyreserves.Concentrationisincreasingintheindustryandtopmanufacturersaregrowingstronger.Theindustryleaderswillshowthetrendofincreasingmarketshareandrisinggrossprofitmargincenter,andhavethepowertofixthemarketpriceofcoreproducts.
(2)Industrysalesinthefirsthalfof2022FromJanuarytoJune2022,thetotalsalesofinternalcombustionengineswere21,452,000units,adeclineof
14.42%yearonyear;theaccumulativepowerwas1,27,7,057,900kW,adecreaseof18.85%yearonyear.FromJanuarytoJune,2,289,500dieselenginesweresold,adecreaseof30.05%yearonyear.Specifically,450,400enginesforconstructionmachineryweresold,adecreaseof23.84%fromthesameperiodlastyear;652,900enginesforagriculturalmachineryweresold,adecreaseof24.81%fromlastyear;20,600enginesforshipbornemachineryweresold,adecreaseof7.69%fromlastyear;155,300enginesforgeneratorsetsweresold,anincreaseof9.29%fromlastyear.Inthefirsthalf,19,155,400gasolineinternalcombustionenginesweresold,down10.71%yearonyear.
Intermsofthesegmentsoftheinternalcombustionenginemarket,fromJanuarytoJune,482,900enginesforconstructionmachineryweresold,down23.79%yearonyear;2,414,700enginesforagriculturalmachineryweresold,down8.38%yearonyear;20,600enginesforshipbornemachineryweresold,down8.26%yearonyear;640,200enginesforgeneratorsetsweresold,down4.74%yearonyear.
(3)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.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingthe
internalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.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.
6.MainBusinessOperationsintheReportingPeriodInthefirsthalfof2022,theinternationalenvironmentwascomplexandchangeable,ChinasawrecurrentoutbreaksoftheCOVID-19pandemic,andsupplyandlogisticsdisruptionswereexperienced.Inaddition,pricesofrawmaterialskeptrising,withbulkmaterialsremainingathighlevelsofprices.ThesefactorsaffectedtheCompany’sproductionandoperation.Balancingpandemicpreventionandcontrolwithoperationanddevelopment,theCompanymovedforwardinasteadymanner.Accordingtotheoperationalobjectivessetfortheyear,theCompanysoughtprogressamidstabilitybyconsolidatingthecorebusinessandmakingtargetedeffortsinimprovingmarketingquality.IntheReportingPeriod,theCompanysoldatotalof317.5thousanddieselengines,gasolineenginesandrelatedgeneratorsets,including75.2thousandgasolineengines,generatingsales
revenueofRMB1.178billion,adecreaseof21.30%yearonyear.Intermsofproductdevelopmentandapplication,theCompanycompletedthedevelopmentandcertificationforlightenginesandmechanicalpumpsingle-cylinderenginesthatmeettheNationalEmissionStandardIVforNon-RoadEngines,aswellastheapplicationexperimentsofavarietyofmulti-cylinderdieselenginesthatmeettheNationalEmissionStandardIVforNon-RoadEnginesonterminalproductsofcustomers.Inthenon-agriculturalfield,theCompanyspedupeffortsinproductdevelopmentandapplication,madesmoothprogressinshipborneproducts,andcompletedmostexperimentsfortheEuropeanUnioncertificationandclassificationsocietycertification.Intermsofmarketservices,onthedomesticmarket,theCompanydeepeneditsexpansioninmarketsegmentsandnon-agriculturalfields;ontheoverseasmarket,theCompanypaidattentiontothecultivationanddevelopmentofemergingandcoremarketsegments,maintainedastableshareoftraditionalapplicationfieldsandmainmarkets,andachievedgrowthinsalesofkeyproducts.Intheforeigntrademarket,affectedbythepandemic,internationalsituationandfinancialenvironment,theexportvolumedecreased,butthebusinessvolumeintheemergingcoremarketsegmentsincreased.Intermsofqualitymanagement,theCompanypassedthesupervisionandverificationbyISO9001andIATF16949qualitysystemsduringtheReportingPeriod.Throughthequalityimprovementproject,theCompanyenhancedthesupplierqualitylevel,strengthenedtheprocessqualitycontrolandreducedqualityloss.Multiplemeasuresweretakentoreducecostsandincreaseefficiencytocopewiththecontinuousriseinrawmaterialpricesathomeandabroad.Greateffortsweremadetoresolutelycrackdownoninfringementsinthemarkettoprotectthebrandmarketimage.Intermsofsafety,environmentalprotectionandpandemicpreventionandcontrol,theCompanyrepeatedlycarriedoutspecialandcomprehensiveemergencyplandrillsandfielddisposalplandrillsforkeypositionstoimprovescientificrescueandaccidentemergencyrescueability,strengthenoccupationalhealtheducationforemployees,andeffectivelysafeguardthelifeandpropertysafetyofemployeesandenterprises.TheCompanyincreaseditsinvestmentintheinformationconstructionoftheCompanyastheparentandsubsidiariestoeffectivelyguaranteethesecurityofthenetworkinformationsystem.Allemployeeswereorganizedtoparticipateinnucleicacidtesting.Throughmeasuressuchastransferbyspecialpersonsandvehicles,afirmfreightpandemicpreventionbarrierwasbuilttoeffectivelyensurethesafetyandstabilityoftheCompany'ssupplychainandsaleschannels.
IntheReportingPeriod,theCompanyacquired41.5%oftheequityofZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.bybidding.On16May2022,ZhenjiangSiyangconvenedageneralmeetingofshareholders,ameetingoftheBoardofDirectorsandameetingoftheSupervisoryCommitteetore-electmembersfortheBoardofDirectors,theSupervisoryCommitteeandmanagement.ZhenjiangSiyanghasbeenincludedintheconsolidatedfinancialstatementsoftheCompany.
IICoreCompetitivenessAnalysis
1.AdvantagesinBrandChangchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,IATF16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.DuringtheReportingPeriod,theCompanywasawardedhonorarytitlessuchastheNationalModelEnterpriseforTrustworthyProductandServiceQuality,ProductwithGuaranteedQualityandReputationinChina,NationalBrandLeadinginProductandServiceQualityIntegrity,andTrustworthyandCreditOrientedEnterpriseinJiangsu.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itis
mainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,atotalof19patentswereappliedforand12newpatentsweregranted.Currently,theCompanyhasatotalof150patentsgrantedbyauthoritiesathomeandabroad,including10inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,26salesservicecenters,and698designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.IIICoreBusinessAnalysisOverviewSeecontentsundertheheading“IPrincipalActivityoftheCompanyintheReportingPeriod”.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
| H12022 | H12021 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 1,178,222,492.04 | 1,497,170,455.80 | -21.30% | |
| Costofsales | 1,051,395,232.42 | 1,284,114,729.46 | -18.12% | |
| Sellingexpense | 51,759,201.38 | 66,174,807.84 | -21.78% | |
| Administrativeexpense | 40,216,534.11 | 48,008,480.48 | -16.23% | |
| Financecosts | -13,000,719.98 | 2,642,630.25 | —— | IncreasedexchangegainsandinterestincomeintheReportingPeriod |
| Incometaxexpense | -6,206,048.88 | 28,287,379.84 | —— | Decreasedfairvalueofsharesheldbywholly-ownedsubsidiaryHorizonInvestmentintheReportingPeriod,leadingtoa |
| correspondingdecreaseinincometaxexpense | ||||
| R&Dinvestments | 40,159,787.47 | 45,136,853.96 | -11.03% | |
| Netcashgeneratedfrom/usedinoperatingactivities | -74,300,501.12 | -92,554,120.06 | —— | |
| Netcashgeneratedfrom/usedininvestingactivities | -86,580,833.90 | -108,221,860.27 | —— | |
| Netcashgeneratedfrom/usedinfinancingactivities | 27,896,685.26 | 618,110,527.29 | -95.49% | Arrivaloffundsraisedinaprivateplacementinthesameperiodoflastyear |
| Netincreaseincashandcashequivalents | -132,984,649.76 | 417,334,546.96 | —— |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
√Applicable□NotapplicableIntheReportingPeriod,theCompanyrecordedanetloss,mainlyduetothefollowingreasons:
1.IntheReportingPeriod,duringthepeakseasonoftheagriculturalmachineryindustry,thepandemichadanegativeimpactontheCompany'sproductionorganization,rawmaterialsupplyandlogisticstransportation.Someordersweredelayedinproduction,deliveryorevencanceled,whichdirectlyledtothedeclineoftheCompany'sproductionandsalesvolumes,salesrevenueandcorebusinessprofit.
2.IntheReportingPeriod,thefairvalueofLianceTechnology(688113),KailongHighTechnology(300912),StarsScienceandTechnology(832885)andotherstocksheldbyChangzhouHorizonInvestmentCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany,decreasedcomparedwiththebeginningoftheperiod.Breakdownofoperatingrevenue:
Unit:RMB
| H12022 | H12021 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 1,178,222,492.04 | 100% | 1,497,170,455.80 | 100% | -21.30% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 1,161,021,786.32 | 98.54% | 1,475,253,150.96 | 98.54% | -21.30% |
| Other | 17,200,705.72 | 1.46% | 21,917,304.84 | 1.46% | -21.52% |
| Byproductcategory | |||||
| Dieselengines | 1,079,645,157.01 | 91.63% | 1,397,255,572.40 | 93.33% | -22.73% |
| Gasolineengines | 73,850,875.09 | 6.27% | 71,788,166.81 | 4.79% | 2.87% |
| Other | 24,726,459.94 | 2.10% | 28,126,716.59 | 1.88% | -12.09% |
| Byoperatingsegment | |||||
| Domestic | 1,019,205,712.35 | 86.50% | 1,273,749,146.74 | 85.08% | -19.98% |
| Overseas | 159,016,779.69 | 13.50% | 223,421,309.06 | 14.92% | -28.83% |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 1,161,021,786.32 | 1,038,738,676.27 | 10.53% | -21.30% | -17.90% | -3.70% |
| Byproductcategory | ||||||
| Dieselengines | 1,079,645,157.01 | 966,445,549.55 | 10.48% | -22.73% | -19.25% | -3.87% |
| Gasolineengines | 73,850,875.09 | 63,190,398.12 | 14.44% | 2.87% | 2.95% | -0.06% |
| Byoperatingsegment | ||||||
| Domestic | 1,019,205,712.35 | 896,815,020.88 | 12.01% | -19.98% | -15.96% | -4.21% |
| Overseas | 159,016,779.69 | 154,580,211.54 | 2.79% | -28.83% | -28.75% | -0.10% |
CorebusinessdataofthepriorperiodrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√NotapplicableAnyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√NotapplicableIVAnalysisofNon-CoreBusinesses
□Applicable√Notapplicable
VAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2022 | 31December2021 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 572,221,826.49 | 11.55% | 707,966,678.74 | 14.57% | -3.02% | |
| Accountsreceivable | 915,456,685.20 | 18.47% | 375,209,126.48 | 7.72% | 10.75% | Longerpaymentdaysformoremarketsandformulti-cylindercustomersmostlybeingsupportingmanufacturersforbiggermanufacturers |
| Inventories | 533,700,662.32 | 10.77% | 651,083,758.18 | 13.40% | -2.63% | |
| Investmentproperty | 43,379,017.43 | 0.88% | 44,597,255.21 | 0.92% | -0.04% | |
| Fixedassets | 710,380,148.39 | 14.33% | 402,915,521.65 | 8.29% | 6.04% | CompletionandtransfertofixedassetsofChangchaiMachinery’sconstructioninprogressintheReportingPeriod |
| Constructioninprogress | 76,620,116.30 | 1.55% | 270,305,690.91 | 5.56% | -4.01% | CompletionandtransfertofixedassetsofChangchaiMachinery’sconstructioninprogressintheReportingPeriod |
| Short-termborrowings | 134,395,924.99 | 2.71% | 73,971,466.65 | 1.52% | 1.19% | IncreasedbankacceptancenotesheldbytheCompanyattheperiod-endthatwerediscountedbutundue |
| Contractliabilities | 39,180,596.15 | 0.79% | 26,864,081.97 | 0.55% | 0.24% |
2.MajorAssetsOverseas
□Applicable√Notapplicable
3.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesthroughequity | ImpairmentallowancemadeintheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Financialassets | ||||||||
| Held-for-tradingfinancialassets(exclusiveofderivativefinancialassets) | 404,053,261.57 | -30,488,388.88 | 443,708,211.00 | 413,291,169.81 | 403,981,913.88 | |||
| Investmentsinotherequityinstruments | 779,877,646.53 | 546,042,496.53 | 721,918,646.53 | |||||
| Subtotaloffinancialassets | 1,183,930,908.10 | -30,488,388.88 | 546,042,496.53 | 443,708,211.00 | 413,291,169.81 | 1,125,900,560.41 | ||
| Others | 150,398,226.39 | 150,398,226.39 | ||||||
| Totalof | 1,334,329,134.49 | -30,488,388.88 | 546,042,496.53 | 443,708,211.00 | 413,291,169.81 | 1,276,298,786.80 |
| theabove | |||
| Financialliabilities | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
4.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingamount | Reasonforrestriction |
| Monetaryassets | 123,582,947.15 | Securitydepositsassociatedwithbankacceptancenotes,environment,etc. |
| Buildings | 1,634,418.39 | Collateralforbankloan |
| Landuseright | 885,605.70 | Collateralforbankloan |
| Plantandequipment | 28,360,996.68 | Collateralforbankloan |
| Paymentobligationsinrelationtodiscountednotesthatwereundue | 134,395,924.99 | |
| Paymentobligationsinrelationtotransferrednotesthatwereundue | 98,388,074.25 | |
| Total | 387,247,967.16 |
VIInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| TotalinvestmentamountintheReportingPeriod(RMB) | Totalinvestmentamountinthesameperiodoflastyear(RMB) | Change |
| 33,520,800.00 | 189,850,000.00 | -82.34% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
| Investee | Principalactiv | Wayofinve | Amountof | TheCompany | Fundingsour | Co-inves | Termofinve | Typeofthe | Investment | Anticipated | Investment | Anylegalmatt | Date(ifany) | Index(ifany) |
| ity | stment | investment | ’sinterest | ce | tor | stment | investee’sproducts | progressasofthebalancesheetdate | returnoninvestment | income/lossintheReportingPeriod | erinvolvedornot | ofdisclosure | todisclosedinformation | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | Manufacturingandmarketingofdieselenginesetsforships | Acquisition | 33,520,800.00 | 41.50% | Self-funded | None | Long-term | Manufacturingandmarketingofdieselenginesetsforships | Transactioncompletedwiththerelevantequityintereststransferred | 0.00 | 1,798,981.78 | Not | 29October2021 | 2021-068 |
| Total | -- | -- | 33,520,800.00 | -- | -- | -- | -- | -- | -- | 0.00 | 1,798,981.78 | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmen | Accountingmeasurementmethod | Beginningcarryingamount | Gain/lossonfairvaluechangesinthe | Accumulatedfairvaluechangesrecor | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingamount | Accountingtitle | Fundingsource |
| tcost | ReportingPeriod | dedinequity | |||||||||||
| Domestic/foreignstock | 600166 | FotonMotor | 41,784,000.00 | Fairvaluemethod | 497,080,000.00 | 0.00 | 367,151,000.00 | 0.00 | 0.00 | 0.00 | 408,935,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 136,422,000.00 | 0.00 | 123,822,000.00 | 0.00 | 0.00 | 0.00 | 166,608,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 24,136,339.00 | -6,237,820.00 | 0.00 | 0.00 | 0.00 | -6,237,820.00 | 17,898,519.00 | Othernon-currentfinancialassets | Self-funded |
| Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 87,840,000.00 | -22,248,000.00 | 0.00 | 0.00 | 0.00 | -22,248,000.00 | 65,592,000.00 | Othernon-currentfinancialassets | Self-funded |
| Domestic/foreign | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 289,000.00 | -37,000.00 | 0.00 | 0.00 | 0.00 | -37,000.00 | 252,000.00 | Othernon-curre | Self-funded |
| stock | ntfinancialassets | ||||||||||||
| Domestic/foreignstock | 832885 | StarsScienceandTechnology | 3,600,000.00 | Fairvaluemethod | 9,675,000.00 | -2,709,000.00 | 0.00 | 0.00 | 0.00 | -2,709,000.00 | 6,966,000.00 | Othernon-currentfinancialassets | Self-funded |
| Total | 115,532,012.76 | -- | 755,442,339.00 | -31,231,820.00 | 490,973,000.00 | 0.00 | 0.00 | -31,231,820.00 | 666,251,519.00 | -- | -- | ||
(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-publicoffering | 63,500 | 2,771.29 | 28,509.65 | 0 | 0 | 0.00% | 34,990.35 | Specialaccountfordepositingraisedfunds | 0 |
| Total | -- | 63,500 | 2,771.29 | 28,509.65 | 0 | 0 | 0.00% | 34,990.35 | -- | 0 |
| 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.AttheendoftheReportingPeriod,RMB285.0965millionofraisedfundshasbeenusedcumulatively,withtheunusedraisedfundsbeingRMB349.9035million. | ||||||||||
(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 | ||||||||||
| Relocationprojectoflightenginesandcasting | No | 54,766.71 | 54,766.71 | 2,733.53 | 26,840.68 | 49.01% | 31May2022 | Nil | No | No |
| Innovationcapacitybuildingprojectofthetechnicalcenter | No | 8,733.29 | 7,299.86 | 37.76 | 163.69 | 2.24% | 31December2023 | Nil | Notapplicable | No |
| Subtotalofcommittedinvestmentprojects | -- | 63,500.00 | 62,066.57 | 2,771.29 | 27,004.37 | -- | -- | -- | -- | -- |
| Investmentofexcessiveraisedfunds | ||||||||||
| Notapplicable | ||||||||||
| Total | -- | 63,500.00 | 62,066.57 | 2,771.29 | 27,004.37 | -- | -- | -- | -- | -- |
| Casesandreasonsforfailingtoreachtheplannedprogressorpredictedreturn(byspecificprojects) | Reasonsforslowingpaymentprogressoflightengineandfoundryingrelocationproject:affectedbytheepidemicfromthesecondhalfof2021tothefirsthalfof2022,thefinalacceptanceprogressoftheprojectisaffectedtoacertainextent,resultinginslowpaymentprogress.Atpresent,thesignedcontractamountoftheprojectisabout470millionyuan,andtheremainingunpaidamountismainlytheunpaidpartaccordingtothepaymentscheduleagreedinthecontractandthesupportingworkingcapitaloftheprojectis130millionyuan.TheprojecthasreachedtheintendedusablestateinMay2022,andpaymentwillbemadeafterthefinalacceptanceoftheproject.Thereasonwhythelightengineandcastingrelocationprojectdidnotrealizebenefitsinthereportingperiod:theprojectreachedtheexpectedserviceablestateinMay2022,anditwilltakesometimeforordermatchingsales.Therefore,asofJune30,2022,nobenefitshavebeenrealized. | |||||||||
| Explanationsofthematerialchangesintheprojectfeasibility | Notapplicable | |||||||||
| Amount,use,anduseprogressofexcessiveraisedfunds | Notapplicable | |||||||||
| Implementationoflocationchangesintheinvestmentprojectswiththe | Notapplicable | |||||||||
| raisedfunds | |
| Implementationofmethodadjustmentstotheinvestmentprojectswiththeraisedfunds | Notapplicable |
| Earlyinvestmentandplacementconcerningtheinvestmentprojectswiththeraisedfunds | 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,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 | Notapplicable |
| Useandownershipchangeofunusedraisedfunds | Depositedinthespecialaccountforraisedfunds |
| Problemsintheuseofraisedfundsanddisclosure,orothercases | OnJuly13,2021,theFourthInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonChangingtheImplementationEntityofSomeInvestmentProjectswithRaisedFunds,agreeingtochangetheimplementationentityoftheCompany'sinvestmentprojectswithfundsraisedthroughnon-publicofferingofshares,the"relocationprojectoflightenginesandcasting",fromChangchaiMachinery,awholly-ownedsubsidiaryoftheCompany,totheparentcompanyofChangchaiCo.,Ltd.Thematterdidnotchangetheuseandimplementationofthefundsraisedandwasnotasignificantchangeintheinvestmentprojectswithraisedfunds.TheProposalonAddingImplementationEntitytothePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEnginesandCastingwasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.Assuch,theCompanydecidedtoaddChangchaiMachineryasanotheroperatingentitywiththeCompanyastheparenttojointoperatetherelocationprojectforbetteroperationalflexibilityandstrongermarketcompetitiveness. |
Note:TheProposalonAddingImplementationLocationtothePrivatePlacementRaisedFundsInvestmentProjectofInnovationCapacityBuildingoftheTechnicalCenterwasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.AsthemainplantoftheCompanyastheparenthasalimitedspace,andcertainR&Dequipmenttobepurchasedneedtoworkwiththerelevantproductionsystem,theCompanydecidedtoaddthesitesofcertainbranchesoftheCompanyastheparentandwholly-ownedsubsidiaryChangchaiMachineryaslocationstoplacetheR&DequipmentandimplementtheR&Dproject.Thischangewillnotre-purposetheraisedfundsandwillhelpcarryforwardthetechnicalinnovationproject.
(3)AlteredProjectsofRaisedFunds
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VIISaleofMajorAssetsandEquityInvestments
1.SaleofMajorAssets
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInvestments
□Applicable√NotapplicableVIIIPrincipalSubsidiariesandJointStockCompanies
√Applicable□NotapplicablePrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 172,490,381.82 | 86,534,429.51 | 101,298,856.28 | -2,043,106.28 | -1,839,208.40 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 71,016,620.36 | 49,609,617.74 | 17,154,269.32 | -324,337.55 | -306,598.18 |
| HorizonInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 106,394,105.84 | 88,110,858.94 | 0.00 | -31,065,595.50 | -23,258,051.62 |
| HorizonAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 10,948,345.00 | -12,272,632.64 | 3,473,571.23 | -1,427,524.84 | -1,427,524.84 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 124,503,924.47 | 108,440,954.08 | 73,850,875.09 | 6,550,455.49 | 5,412,817.26 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelated | 300,000,000.00 | 504,460,914.22 | 293,767,525.35 | 0.00 | -2,414,958.49 | -2,376,129.73 |
| accessories | ||||||||
| XingshengRealEstateManagement | Subsidiary | Realestatemanagementservice | 1,000,000.00 | 6,474,578.39 | 5,087,636.70 | 2,239,917.00 | 940,967.61 | 870,196.02 |
| ZhenjiangSiyang | Subsidiary | Manufacturingandmarketingofdieselenginesforships | 2,000,000.00 | 97,221,753.24 | 83,879,657.40 | 23,435,207.63 | 3,352,758.26 | 2,594,944.16 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
√Applicable□Notapplicable
| Companyname | HowthesubsidiarywasobtainedordisposedofintheReportingPeriod | ImpactontheCompany’soperationsandoperatingresults |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | TheCompanywonthebidofRMB33.5208millionofownfundsforthe41.5%equityinterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,whichwasputoutforsalebyJiangsuKedaAssetsMarketingCo.,Ltd. | ThistransactionwillhelptheCompanyexpanditsproductchain,completeitsbusinessportfolioandpromotelong-termdevelopment. |
Otherinformationaboutprincipalsubsidiariesandjointstockcompanies:
ChangzhouHorizonInvestmentCo.,Ltd.(HorizonInvestment),awholly-ownedsubsidiaryoftheCompany,reportedanetprofitofRMB-23.2581millioninH12022(H12021:RMB62.4119million).ThisismainlyaresultofthedecreasedfairvalueofsharesheldinLianceTechnology(688113),KailongHighTechnology(300912)andStarsScienceandTechnology(832885),amongothers.
IXStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
XRisksFacingtheCompanyandCountermeasures
1.MarketriskInrecentyears,theagriculturalindustryhasstillbeeninaperiodofdeepadjustment,inwhichdieselenginesfacelimitedtotaldemand,theproductdeliveryabilityanddeliveryenvironmentneedtobeimproved,andtheloweruserrevenueexacerbatestheincreaseinupdatecycles.Countermeasures:First,theCompanyintensifieditseffortsinkeyproductdevelopmentandapplication,andproductdevelopmentinnewfields.Second,theCompanysolidifiedthetraditionalapplicationfieldsandexpandedmorepossibilitiesforapplicationsinnewfields.Third,theCompanymadeactiveuseofthecapital
platformtopushaheadcapitaloperationprojectsinasteadyandorderlymannertoservetheCompany'sdevelopment.
2.IndustrialriskInrecentyears,thestateadvocatesenergyconservationandemissionreduction.Newenergypowerrepresentedbypureelectric,hybridpowerandhydrogenfuelpowerhasgrabbedthemarketshareofdieselenginetoacertainextent.Atpresent,newenergypowerismainlyusedinvehicles.Itsuseinagriculturalmachineryisstillfacingproblemssuchashighcostandcomplexoperatingenvironment.However,asbreakthroughshavebeenmadeinnewenergybatterytechnology,thelocalapplicationscenarioofdieselenginemaybereplacedbynewenergypower.Countermeasures:Withregardtothelayoutofnewenergyindustry,theCompanyactivelypromotesprojectconstructionanddevelopment.Meanwhile,theCompanymakespropereffortsinproductR&Dandexpandsnewdevelopmentdirectionsandapplicationareas.
3.TheriskofrawmaterialpricefluctuationsTheCompany'srawmaterialpurchasepriceismainlyaffectedbyfactorssuchasmacroeconomiccycle,industrialpolicyadjustment,marketsupplyanddemandchanges.PricefluctuationsofrawmaterialsmayadverselyaffectCompany'sbusinessperformance.Countermeasures:Bystrengtheninginventoryandplanmanagement,costcontrolandothermeasures,theCompanyfurtherimprovesouroperatingefficiencyandreducetheupwardpressureoncosts.
4.ForeigntraderiskTheinternationaleconomicenvironmentiscomplexandvolatile.Multiplefactorshavecreateduncertaintiestotheglobalmacroeconomicoutlook,suchasseverechallengesbroughtbythenormalizationoftheCOVID-19tothecurrentforeigntradeoperation,theprevalenceofglobaltradeprotectionismandtheabnormalfluctuationsoftheinternationalfinancialmarket,affectingtheexportofproducts.Countermeasures:TheCompanyconsolidatedtheexistingcustomerbase,strengthenedthemaintenanceandmanagementofoverseaskeymarketsandcustomers,intensifiedeffortsinthedevelopmentofemergingmarketsandnewusers,andendeavoredtoimprovethesalesofhigh-value-addedproducts.
5.Talentrisk
AstheCompanyhasbeencommittedtoimprovingoperationalefficiencyandtechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend,ithasasignificantlygreaterdemandforprofessionalsandseniormanagementpersonnel.Countermeasures:First,theCompanyintroducedtoptalentthroughvariouschannelsandstrengthenedpersonneltraining.Second,theCompanyoptimizedtheperformanceappraisalsystemandincentivepaysystem.Third,theCompanymadeeffortstostrengthenemployeetrainingandactivelypromotetalentcultivationtoreducethelossofprofessionalsandreinforcetalentteambuilding.
PartIVCorporateGovernanceIAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Dateofdisclosure | Indextodisclosedinformation |
| The2021AnnualGeneralMeeting | AnnualGeneralMeeting | 32.33% | 6May2022 | 7May2022 | Allproposalswereapproved.SeeAnnouncementNo.2022-027onResolutionsofthe2021AnnualGeneralMeeting. |
2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferenceShareholderswithResumedVotingRights
□Applicable√Notapplicable
IIChangeofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableNochangesoccurredtotheCompany’sdirectors,supervisorsandseniormanagementduringtheReportingPeriod.Fortheirinformation,seethe2021AnnualReport.IIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVEnvironmentalandSocialResponsibilityIMajorEnvironmentalIssues
IndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoAdministrativepunishmentsreceivedintheReportingPeriodduetoenvironmentalissues:
| Companyorsubsidiary | Reasonforpunishment | Violation | Punishment | ImpactontheCompany | RectificationmeasuresoftheCompany |
| N/A | N/A | N/A | N/A | N/A | N/A |
Otherenvironmentalinformationwithreferencetoakeypolluter:
NeithertheCompanynoranyofitssubsidiariesisakeypolluteridentifiedbytheenvironmentauthorities.Theystrictlyobserveapplicablelawsandregulationsassociatedwithenvironmentalprotectioninproductionandoperation,withoutreceivinganypenaltyformajorviolationofsuchlawsorregulationsduringtheReportingPeriod.ActionstakenduringtheReportingPeriodtoreducecarbonemissionsandtheimpact:
□Applicable√NotapplicableReasonsfornotdisclosingotherenvironment-relatedinformation:
N/A
IISocialResponsibilityIntheReportingPeriod,theCompanyalwaysattachedequalimportancetoeconomicbenefitsandsocialbenefits,paidattentiontoitscorporatesocialresponsibility,andmaintainedstandardizedandprudentoperation.Also,theCompanyconscientiouslyfulfilleditsresponsibilitiesandobligationstoshareholders,employees,consumers,suppliersandotherparties,inanefforttoachievewin-winoutcomesforallparties,andtotakeanactivepartintheconstructionofaharmonioussociety.InstrictaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLaw,theCodeofCorporateGovernanceforListedCompanies,theListingRulesofShenzhenStockExchange,otherrelevantlawsandregulationsandtheArticlesofAssociation,theCompanystandardizeditsoperation,andformedaninternalmanagementandcontrolpolicysysteminwhichtheShareholders'GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommitteerestricteachotherandoperateeffectively.Accordingtotheinternalcontrolpolicysystem,theCompanydefinedtheresponsibilitiesandauthoritiesforpartiesinchargeofdecision-making,executionandsupervision,effectivelydividedresponsibilitiesandformedabalancemechanism,andcontinuouslyimprovedthestandardizedoperationleveloftheCompany.Protectionoftherightsandinterestsofinvestors:TheCompanyhasexerciseditsfunctionsandpowersinstrictaccordancewithrelevantlawsandregulationstoeffectivelyprotecttherightsandinterestsofallshareholders.IntheReportingPeriod,theCompanyconductedanonlineresultspresentationofAnnualReport2021,earnestlyorganizedthemanagementofinvestors,communicatedwithshareholderseffectively,accuratelyandcompletely,andtreatedallshareholdersfairly.TheCompany'sinformationdisclosureislegalandcompliant,andthecontent
disclosedistrue,accurateandcompletetosafeguardshareholders'righttoknow,andprovideinvestorswithasufficientinvestmentbasis.TheCompanyattachesgreatimportancetothemanagementofinsiderinformation.IntheReportingPeriod,therewasnoinsidertradingordamagetotheinterestsofshareholders.Protectionofcreditors'equity:TheCompanyestablishedasystematicinternalcontrolsystemthatcoversfinancialmanagement,investmentmanagement,financingmanagement,assetmanagement,fundmanagement,accountingmanagementandcurrentaccountmanagement.Moreover,prudentfinancialmanagementplanwasimplemented,accountingsupervisionwasconductedinaccordancewiththelaw,andtheCompany'sassetswereeffectivelyutilizedtoimprovetheCompany'seconomicbenefitsandensurethesecurityoftheCompany'sassetsandfundseffectively.Protectionofemployees'rightsandinterests:TheCompanyupholdsthepeople-orientedconceptintalentmanagement.Specifically,theCompanypaidattentiontothecomprehensiveabilityimprovementandpersonalcareerdevelopmentofemployees,andimprovedanddevelopedemployees'abilitiesbycombiningtheoryandpractice.TheCompanyactivelyimprovedtheworkingenvironmentofemployees,andproperlymonitoredemployees'healthtoeffectivelyguaranteetheoccupationalsafetyandhealthofemployees.TheCompanyhasstrictlyobservedtheLaborLawandtheLaborContractLaw,protectedthelegitimaterightsandinterestsofemployeesaccordingtolaw,andbuiltharmoniousandstablerelationsbetweenemployeesandemployer.Protectionoftherightsandinterestsofcustomersandsuppliers:IntheReportingPeriod,theCompanywasawardedhonorarytitlessuchastheNationalModelEnterpriseforTrustworthyProductandServiceQuality,ProductwithGuaranteedQualityandReputationinChinaandNationalBrandLeadinginProductandServiceQualityIntegrity.TheCompanyhasestablishedgoodlong-termpartnershipswithitssuppliersandcustomers,iscommittedtoprovidingcustomerswithquality,efficientandtimelyservices,andhasbeenrecognizedandhonoredbymanycustomersandhigh-qualitysuppliers.Accordingtotheassessmentresultsandactualsupplysituation,theCompanyconstantlyhasadjustedandoptimizeditssupplysystem,andsupportedthetechnologygrowthandprogressofsuppliers,inanefforttocreateavirtuouscycleofsupplyrelations.TheCompanyactivelypromotedtheR&Dofhigh-qualityproducts,acceleratedproductupdate,andpromotedtheapplicationofproductstoservetheconstructionofagriculture,ruralareasandfarmers.TheCompanycontinuedtoimplementenergyconservationandemissionreductionmeasurestoimproveenergyefficiency,reduceconsumptionandprotecttheenvironment.TheCompanytooksolidstepsforcharitytogivebacktosociety.Specifically,itactivelyparticipatedinrelevantcharityactivitiesinthelocality.TheCompanyalwaysremembersitssocialresponsibilities,andhasmadecontributionstosocialdevelopmentwithpracticalactions.
PartVISignificantEvents
ICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| CommitmentsmadeinIPOorrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutshareholdingreduction | 1.ThecompanyanditscontrolledrelatedpartieshavenotreducedtheirholdingsofsharesofChangchaiCompanyfromthesixmonthspriortotheannouncementofthedecisionoftheBoardofDirectorsofChangchaiCompany,Limited("ChangchaiCompany")concerningtheproposaltoconsiderthenon-publicofferingofsharestothedateofissuanceofthisLetterofCommitment.2.ThecompanyanditscontrolledrelatedpartieshavenoplantoreducetheirholdingsofsharesofChangchaiCompanyfromthedateofissuanceofthisLetterofCommitmenttosixmonthsafterthecompletionofthisissuance. | 29September2020 | 10October2019-30June2022 | Expired |
| ChangzhouInvestmentGroupCo.,Ltd. | Aboutsharetrading | ItwillnottransferthesharesithasobtainedintheprivateplacementofChangchaiwithin36monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5July2024 | Ongoing |
| restriction | |||||
| ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.ItundertakesnottointerfereintheCompany'soperationandmanagementactivitiesbeyonditsauthorityandnottoencroachontheCompany'sinterests;2.Itundertakesnottotransferbenefitstootherentitiesorindividualsfreeofchargeoronunfairterms,nortoimpairtheinterestsoftheCompanybyanyothermeans;3.AftertheissuanceofthisLetterofCommitmentandbeforethecompletionoftheCompany'snon-publicofferingofshares,iftheChinaSecuritiesRegulatoryCommission(CSRC)makesothernewregulatoryprovisionsonthereturnfillingmeasuresandcommitments,andtheaforesaidcommitmentscannotmeetsuchprovisionsoftheCSRC,itundertakestoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC;4.ItundertakestoeffectivelyimplementtheCompany'smeasurestofillthereturnandanycommitmentsmadethereon.IftheCompanybreachessuchcommitmentsandcauseslossestotheCompanyortheinvestors,theCompanyiswillingtocompensatetheCompanyortheinvestorsaccordingtolaw. | 11April2020 | 11April2020-31December9999 | Ongoing |
| UBSAG,CaitongFundManagementCo.,Ltd.,ChangzhouTrafficConstructionInvestmentDevelopmentGeneralCompany,ChenBeiwen,GuotaiAssetManagementCo.,Ltd.,JiangxiJintouIndustrialDevelopmentCo.,Ltd.,LiXueqin,NanhuaFundCo.,Ltd.,Enjoy(Ningbo) | Aboutsharetradingrestriction | I/WeundertakethatI/wewillnottransferthesharesI/wehaveobtainedintheprivateplacementofChangchaiwithin6monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5January2022 | Expired |
| AssetManagementL.P.,NuodeAssetManagementCo.,Ltd.,SunMeichun,MinmetalsSecuritiesCo.,Ltd.,YaoJianquan,ChinaNationalGoldGroupAssetManagementCo.,Ltd.,andZhouZhiheng | ||||||
| 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 | |||||
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsareunaudited.VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable√Notapplicable
VIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIILegalMattersSignificantlawsuitsandarbitrations:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
□Applicable√NotapplicableIXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XCreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController
√Applicable□NotapplicableThedefactocontrolleroftheCompanyisSASACofChangzhouPeople’sGovernmentandthecontrollingshareholderofitisChangzhouInvestmentGroupCo.,Ltd.Thereisnosuchcasethatthecontrollingshareholderfailstoperformanylegallyeffectivejudgmentofcourtsortopayoffmatureddebtswithalargeamount.
XIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorDisposalofAssetsorEquityInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.AmountsDuetoandfromRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable√NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable√NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
Unit:RMB'0,000
| 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 |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 15April2021 | 2,000 | 7May2021 | 2,000 | Jointliability | 1year | Yes | No |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 0 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 500 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 0 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 0 | |||||
| Guaranteesbetweensubsidiaries | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 0 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 500 | |||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 0 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 0 | |||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.00% |
| Ofwhich: | |
| Balanceofguaranteesprovidedforshareholders,thedefactocontrollerandtheirrelatedparties(D) | 0 |
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforentitieswithanover70%debt/assetratio(E) | 0 |
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 |
| Totalofthethreeamountsabove(D+E+F) | 0 |
| Possibilityofhavingtoexecutejointliabilityonoutstandingguarantees(ifany) | N/A |
| Irregularitiesintheprovisionofguaranteestoexternalparties(ifany) | N/A |
3.CashEntrustedforWealthManagement
√Applicable□Notapplicable
Unit:RMB’0,000
| Type | Fundingsource | Amount | Undueamount | Unrecoveredoverdueamount | Impairmentallowanceforunrecoveredoverdueamount |
| Brokerfinancialproducts | Self-funded | 855 | 855 | 0 | 0 |
| Bankfinancialproducts | Self-funded | 2,500 | 2,500 | 0 | 0 |
| Brokerfinancialproducts | Raisedfunds | 5,000 | 0 | 0 | 0 |
| Bankfinancialproducts | Raisedfunds | 28,000 | 28,000 | 0 | 0 |
| Total | 36,355 | 31,355 | 0 | 0 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidityornoprincipalprotection:
□Applicable√NotapplicableSituationwheretheprincipalisexpectedlyirrecoverableoranimpairmentmaybeincurred:
□Applicable√Notapplicable
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIIOtherSignificantEvents
√Applicable□Notapplicable
1.Participationinbiddingfor41.5%equityinterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.thatwasputoutforsaleTheSixthExtraordinaryMeetingoftheBoardofDirectorsin2021heldbytheCompanyon28October2021deliberatedonandapprovedtheProposalonParticipationinBiddingfor41.5%EquityInterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,authorizingtheManagementoftheCompanytoparticipateinbiddingfor41.5%equityinterestinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.(hereinafterreferredtoas"ZhenjiangSiyang")thathadbeenputoutforsalebyJiangsuKedaAssetsMarketingCo.,Ltd.(hereinafter,“KedaAssets”).On12January2022,JiangsuAssetsandEquityExchangeCo.,Ltd.issuedtheConfirmationofTransactionontheTransferof41.5%EquityInterests(CorrespondingtoCapitalContributionofRMB830,000)inZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.TheCompanywonthebidforthe41.5%equityinterestsinZhenjiangSiyangatapriceofRMB33,520,800.00.On23February2022,theCompanysignedtheContractonTransferofState-ownedPropertyRightswithKedaAssets.On9March2022,ZhenjiangSiyanghascompletedtherelevantregistrationalterationformalitieswiththecompetentindustrialandcommercialadministration.On16May2022,ZhenjiangSiyangheldmeetingsofshareholders,theBoardofDirectorsandtheSupervisoryCommitteetoelectandappointnewmembersfortheBoardofDirectors,theSupervisoryCommitteeandmanagement.ZhenjiangSiyanghasbeenincludedintheconsolidatedfinancialstatementsoftheCompany.
XIVSignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
| 1.Restrictedshares | 144,318,181 | 20.45% | -87,500,000.00 | -87,500,000.00 | 56,818,181 | 8.05% | |||
| 1.1Sharesheldbygovernment | 0 | 0.00% | 0.00 | 0.00 | 0 | 0.00% | |||
| 1.2Sharesheldbystate-ownedlegalpersons | 72,045,453 | 10.21% | -15,227,272.00 | -15,227,272.00 | 56,818,181.00 | 8.05% | |||
| 1.3Sharesheldbyotherdomesticinvestors | 68,863,638 | 9.76% | -68,863,638.00 | -68,863,638.00 | 0 | 0.00% | |||
| Amongwhich:Shares | 48,818,178 | 6.92% | -48,818,178.00 | -48,818,178.00 | 0 | 0.00% | |||
| heldbydomesticlegalpersons | |||||||
| Sharesheldbydomesticnaturalpersons | 20,045,460 | 2.84% | -20,045,460.00 | -20,045,460.00 | 0 | 0.00% | |
| 1.4Sharesheldbyforeigninvestors | 3,409,090 | 0.48% | -3,409,090.00 | -3,409,090.00 | 0 | 0.00% | |
| Amongwhich:Sharesheldbyforeignlegalpersons | 3,409,090 | 0.48% | -3,409,090.00 | -3,409,090.00 | 0 | 0.00% | |
| Sharesheldbyforeignnaturalpersons | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 2.Unrestrictedshares | 561,374,326 | 79.55% | 87,500,000.00 | 87,500,000.00 | 648,874,326 | 91.95% | |
| 2.1RMB-denominatedordinaryshares | 411,374,326 | 58.29% | 87,500,000.00 | 87,500,000.00 | 498,874,326 | 70.69% | |
| 2.2Domestically | 150,000,000 | 21.26% | 0 | 0 | 150,000,000 | 21.26% |
| listedforeignshares | |||||||
| 2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 2.4Other | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 3.Totalshares | 705,692,507 | 100.00% | 0 | 0 | 705,692,507 | 100.00% |
Reasonsforthesharechanges:
√Applicable□NotapplicableThe144,318,181newsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.DuringtheReportingPeriod,atotalof87,500,000sharesjointlyheldby15shareholderswerereleasedtobetradedon5January2022.Approvalofthesharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
√Applicable□Notapplicable
Unit:share
| Nameoftheshareholders | Restrictedsharesamountattheperiod-begi | Restrictedsharesrelievedoftheperiod | Restrictedsharesincreasedoftheperiod | Restrictedsharesamountattheperiod-end | Restrictedreasons | Restrictedsharesrelieveddate |
| n | ||||||
| ChangzhouInvestmentGroupCo.,Ltd. | 56,818,181 | 0 | 0 | 56,818,181 | Additionalissuanceof56,818,181sharesthroughtheprivateplacementofshares | 2024-7-5 |
| UBSAG | 3,409,090 | 3,409,090 | 0 | 0 | Additionalissuanceof3,409,090sharesthroughtheprivateplacementofshares | 2022-1-5 |
| CaitongFundManagementCo.,Ltd. | 7,909,090 | 7,909,090 | 0 | 0 | Additionalissuanceof7,909,090sharesthroughtheprivateplacementofshares | 2022-1-5 |
| JiangxiJintouIndustrialDevelopmentCo.,Ltd. | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
| GuotaiAssetManagementCo.,Ltd. | 8,181,818 | 8,181,818 | 0 | 0 | Additionalissuanceof8,181,818sharesthroughtheprivateplacementofshares | 2022-1-5 |
| Enjoy(Ningbo)AssetManagementL.P. | 6,818,181 | 6,818,181 | 0 | 0 | Additionalissuanceof6,818,181sharesthroughtheprivateplacementofshares | 2022-1-5 |
| ZhouZhiheng | 3,409,090 | 3,409,090 | 0 | 0 | Additionalissuanceof3,409,090sharesthroughtheprivateplacementofshares | 2022-1-5 |
| ChinaNationalGoldGroupAssetManagementCo.,Ltd. | 10,681,818 | 10,681,818 | 0 | 0 | Additionalissuanceof10,681,818sharesthroughtheprivateplacementofshares | 2022-1-5 |
| SunMeichun | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivate | 2022-1-5 |
| placementofshares | ||||||
| NuodeAssetManagementCo.,Ltd. | 11,363,636 | 11,363,636 | 0 | 0 | Additionalissuanceof11,363,636sharesthroughtheprivateplacementofshares | 2022-1-5 |
| MinmetalsSecuritiesCo.,Ltd. | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
| ChenBeiwen | 7,272,727 | 7,272,727 | 0 | 0 | Additionalissuanceof7,272,727sharesthroughtheprivateplacementofshares | 2022-1-5 |
| NanhuaFundCo.,Ltd. | 5,454,545 | 5,454,545 | 0 | 0 | Additionalissuanceof5,454,545sharesthroughtheprivateplacementofshares | 2022-1-5 |
| YaoJianquan | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
| ChangzhouTransportationConstructionInvestmentDevelopmentCo.,Ltd. | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 2022-1-5 |
| LiXueqin | 272,735 | 272,735 | 0 | 0 | Additionalissuanceof272,735sharesthroughtheprivateplacementofshares | 2022-1-5 |
| Total | 144,318,181 | 87,500,000 | 0 | 56,818,181 | -- | -- |
II.IssuanceandListingofSecurities
□Applicable√Notapplicable
IIIShareholdersandTheirHoldings
Unit:share
| Numberofordinaryshareholders | 57,434 | Numberofpreferenceshareholderswithresumedvotingrights(ifany) | 0 | |||||||
| 5%orgreaterordinaryshareholdersorthetop10ordinaryshareholders | ||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Ordinarysharesheld | Increase/decreaseintheReportingPeriod | Restrictedordinarysharesheld | Unrestrictedordinarysharesheld | Sharesinpledgeorfrozen | |||
| Status | Shares | |||||||||
| ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 32.26% | 227,663,417 | 56,818,181 | 170,845,236 | |||||
| ChenJian | Domesticnaturalperson | 0.70% | 4,952,045 | 4,952,045 | ||||||
| ChinaNationalGoldGroupAssetManagementCo.,Ltd. | State-ownedcorporation | 0.45% | 3,200,000 | 3,200,000 | ||||||
| KGIASIALIMITED | Foreignlegalperson | 0.44% | 3,101,695 | 3,101,695 | ||||||
| YaoJianquan | Domesticnaturalperson | 0.24% | 1,699,954 | 1,699,954 | ||||||
| ChinaMinshengBank-GoldstateYuanqiDynamicAssetAllocationMixedTypeSecuritiesInvestmentFund | Other | 0.22% | 1,579,173 | 1,579,173 | ||||||
| LiSuinan | Domesticnaturalperson | 0.22% | 1,569,100 | 1,569,100 | ||||||
| HuangGuoliang | Domesticnaturalperson | 0.22% | 1,528,891 | 1,528,891 | ||||||
| SuZhenxing | Domesticnaturalperson | 0.21% | 1,490,393 | 1,490,393 | ||||||
| LuZhang | Domesticnatural | 0.19% | 1,370,112 | 1,370,112 | ||||||
| person | ||||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderinarightsissue(ifany) | N/A | |||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | |||
| Explainifanyoftheshareholdersabovewasinvolvedinentrusting/beingentrustedwithvotingrightsorwaivingvotingrights | N/A | |||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | |||
| Top10unrestrictedshareholders | ||||
| Nameofshareholder | Unrestrictedordinarysharesheld | Sharesbyclass | ||
| Class | Shares | |||
| ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMB-denominatedordinaryshare | 170,845,236 | |
| ChenJian | 4,952,045 | RMB-denominatedordinaryshare | 4,952,045 | |
| ChinaNationalGoldGroupAssetManagementCo.,Ltd. | 3,200,000 | RMB-denominatedordinaryshare | 3,200,000 | |
| KGIASIALIMITED | 3,101,695 | Domesticallylistedforeignshare | 3,101,695 | |
| YaoJianquan | 1,699,954 | RMB-denominatedordinaryshare | 1,699,954 | |
| ChinaMinshengBank-GoldstateYuanqiDynamicAssetAllocationMixedTypeSecuritiesInvestmentFund | 1,579,173 | RMB-denominatedordinaryshare | 1,579,173 | |
| LiSuinan | 1,569,100 | Domesticallylistedforeignshare | 1,569,100 | |
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 | |
| SuZhenxing | 1,490,393 | RMB-denominatedordinaryshare | 1,490,393 | |
| LuZhang | 1,370,112 | Domesticallylistedforeignshare | 1,370,112 | |
| Relatedoracting-in-concertpartiesamongthetop10unrestrictedordinaryshareholders,aswellasbetweenthetop10unrestrictedordinaryshareholdersandthetop10ordinaryshareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. |
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholdersChenJianandYaoJianquanheld3,380,000and1,699,954sharesrespectivelyintheCompanythroughtheirmarginaccounts. |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableNochangesoccurredtotheshareholdingsofthedirectors,supervisorsandseniormanagementintheReportingPeriod.Seethe2021AnnualReportformoredetails.VChangeoftheControllingShareholderortheDeFactoController
ChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
□Applicable√Notapplicable
PartXFinancialStatementsIIndependentAuditor’sReport
Aretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes√NoTheseinterimfinancialstatementshavenotbeenauditedbyanindependentauditor.IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
30June2022
Unit:RMB
| Item | 30June2022 | 1January2022 |
| Currentassets: | ||
| Monetaryassets | 572,221,826.49 | 707,966,678.74 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 403,981,913.88 | 404,053,261.57 |
| Derivativefinancialassets | ||
| Notesreceivable | 481,963,539.81 | 334,311,236.78 |
| Accountsreceivable | 915,456,685.20 | 375,209,126.48 |
| Accountsreceivablefinancing | 109,896,100.86 | 497,388,826.02 |
| Prepayments | 9,181,800.63 | 8,197,418.39 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 17,260,272.39 | 19,515,350.52 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Financialassetspurchasedunder |
| resaleagreements | ||
| Inventories | 533,700,662.32 | 651,083,758.18 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 28,394,257.94 | 44,060,822.57 |
| Totalcurrentassets | 3,072,057,059.52 | 3,041,786,479.25 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | 37,898,226.39 | 37,898,226.39 |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 721,918,646.53 | 779,877,646.53 |
| Othernon-currentfinancialassets | 112,500,000.00 | 112,500,000.00 |
| Investmentproperty | 43,379,017.43 | 44,597,255.21 |
| Fixedassets | 710,380,148.39 | 402,915,521.65 |
| Constructioninprogress | 76,620,116.30 | 270,305,690.91 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 158,820,832.11 | 155,154,745.91 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | 168,183.91 | 110,345.30 |
| Deferredincometaxassets | 10,705,583.29 | 10,693,809.23 |
| Othernon-currentassets | 11,611,024.84 | 4,543,240.88 |
| Totalnon-currentassets | 1,884,001,779.19 | 1,818,596,482.01 |
| Totalassets | 4,956,058,838.71 | 4,860,382,961.26 |
| Currentliabilities: | ||
| Short-termborrowings | 134,395,924.99 | 73,971,466.65 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 565,529,500.00 | 550,774,400.00 |
| Accountspayable | 716,529,188.78 | 666,186,668.82 |
| Advancesfromcustomers | 411,746.26 | 660,965.62 |
| Contractliabilities | 39,180,596.15 | 26,864,081.97 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 13,334,668.05 | 45,385,667.48 |
| Taxespayable | 9,362,552.01 | 5,306,378.82 |
| Otherpayables | 153,925,355.85 | 148,361,373.29 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 117,795,225.18 | 88,938,192.79 |
| Totalcurrentliabilities | 1,750,464,757.27 | 1,606,449,195.44 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares |
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 39,615,355.40 | 39,615,355.40 |
| Deferredincometaxliabilities | 101,423,332.63 | 117,344,161.11 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 141,038,688.03 | 156,959,516.51 |
| Totalliabilities | 1,891,503,445.30 | 1,763,408,711.95 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 640,133,963.01 | 640,676,218.40 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 456,746,349.55 | 506,011,499.55 |
| Specificreserve | 18,812,950.04 | 18,812,950.04 |
| Surplusreserves | 334,144,488.46 | 334,144,488.46 |
| Generalreserve | ||
| Retainedearnings | 839,272,254.93 | 872,212,354.88 |
| TotalequityattributabletoownersoftheCompanyastheparent | 2,994,802,512.99 | 3,077,550,018.33 |
| Non-controllinginterests | 69,752,880.42 | 19,424,230.98 |
| Totalowners’equity | 3,064,555,393.41 | 3,096,974,249.31 |
| Totalliabilitiesandowners’equity | 4,956,058,838.71 | 4,860,382,961.26 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2022 | 1January2022 |
| Currentassets: | ||
| Monetaryassets | 470,089,580.54 | 615,184,387.01 |
| Held-for-tradingfinancialassets | 280,677,397.27 | 262,004,030.14 |
| Derivativefinancialassets | ||
| Notesreceivable | 442,389,706.25 | 312,118,296.88 |
| Accountsreceivable | 876,984,511.81 | 349,135,255.42 |
| Accountsreceivablefinancing | 104,609,495.00 | 497,388,826.02 |
| Prepayments | 2,008,908.66 | 2,727,652.23 |
| Otherreceivables | 112,148,961.53 | 26,497,081.34 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 384,892,199.17 | 516,588,187.24 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 21,292,211.46 | |
| Totalcurrentassets | 2,673,800,760.23 | 2,602,935,927.74 |
| Non-currentassets: | ||
| Investmentsindebtobligations | 37,898,226.39 | 37,898,226.39 |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 569,273,530.03 | 535,752,730.03 |
| Investmentsinotherequityinstruments | 721,918,646.53 | 779,877,646.53 |
| Othernon-currentfinancialassets | 112,500,000.00 | 112,500,000.00 |
| Investmentproperty | 43,379,017.43 | 44,597,255.21 |
| Fixedassets | 268,405,430.86 | 325,034,679.67 |
| Constructioninprogress | 14,527,817.41 | 15,557,418.76 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 64,495,178.59 | 66,621,426.26 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 9,613,375.32 | 9,613,375.32 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 1,842,011,222.56 | 1,927,452,758.17 |
| Totalassets | 4,515,811,982.79 | 4,530,388,685.91 |
| Currentliabilities: | ||
| Short-termborrowings | 127,395,924.99 | 58,971,466.65 |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 555,529,500.00 | 544,444,400.00 |
| Accountspayable | 511,502,328.13 | 546,689,207.59 |
| Advancesfromcustomers | 361,746.26 | 660,965.62 |
| Contractliabilities | 33,230,278.78 | 24,730,270.44 |
| Employeebenefitspayable | 6,363,916.75 | 37,861,577.50 |
| Taxespayable | 5,136,642.12 | 2,955,053.82 |
| Otherpayables | 131,936,513.29 | 135,773,368.98 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 101,680,550.03 | 63,535,570.11 |
| Totalcurrentliabilities | 1,473,137,400.35 | 1,415,621,880.71 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares |
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 39,615,355.40 | 39,615,355.40 |
| Deferredincometaxliabilities | 86,442,011.09 | 95,034,251.50 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 126,057,366.49 | 134,649,606.90 |
| Totalliabilities | 1,599,194,766.84 | 1,550,271,487.61 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 659,418,700.67 | 659,418,700.67 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 456,746,349.55 | 506,011,499.55 |
| Specificreserve | 18,812,950.04 | 18,812,950.04 |
| Surplusreserves | 334,144,488.46 | 334,144,488.46 |
| Retainedearnings | 741,802,220.23 | 756,037,052.58 |
| Totalowners’equity | 2,916,617,215.95 | 2,980,117,198.30 |
| Totalliabilitiesandowners’equity | 4,515,811,982.79 | 4,530,388,685.91 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12022 | H12021 |
| 1.Revenue | 1,178,222,492.04 | 1,497,170,455.80 |
| Including:Operatingrevenue | 1,178,222,492.04 | 1,497,170,455.80 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 1,175,890,460.94 | 1,452,332,780.19 |
| Including:Costofsales | 1,051,395,232.42 | 1,284,114,729.46 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 5,360,425.54 | 6,255,278.20 |
| Sellingexpense | 51,759,201.38 | 66,174,807.84 |
| Administrativeexpense | 40,216,534.11 | 48,008,480.48 |
| R&Dexpense | 40,159,787.47 | 45,136,853.96 |
| Financecosts | -13,000,719.98 | 2,642,630.25 |
| Including:Interestexpense | 3,276,786.93 | 4,437,018.11 |
| Interestincome | 6,634,812.22 | 4,502,088.58 |
| Add:Otherincome | 1,602,830.77 | 406,454.70 |
| Returnoninvestment(“-”forloss) | 11,744,282.88 | 8,524,500.87 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -30,488,388.88 | 122,554,092.00 |
| Creditimpairmentloss(“-”forloss) | -11,932,826.66 | -12,495,432.28 |
| Assetimpairmentloss(“-”forloss) | 4,342,775.64 | -5,950,895.20 |
| Assetdisposalincome(“-”forloss) | -361,395.36 | -751,441.20 |
| 3.Operatingprofit(“-”forloss) | -22,760,690.51 | 157,124,954.50 |
| Add:Non-operatingincome | 2,349,897.18 | 850,183.59 |
| Less:Non-operatingexpense | 392,257.24 | 333,307.72 |
| 4.Profitbeforetax(“-”forloss) | -20,803,050.57 | 157,641,830.37 |
| Less:Incometaxexpense | -6,206,048.88 | 28,287,379.84 |
| 5.Netprofit(“-”fornetloss) | -14,597,001.69 | 129,354,450.53 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | -14,597,001.69 | 129,354,450.53 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | -14,595,269.61 | 129,189,065.60 |
| 5.2.1Netprofitattributabletonon-controllinginterests | -1,732.08 | 165,384.93 |
| 6.Othercomprehensiveincome,netoftax | -49,265,150.00 | 106,633,979.81 |
| AttributabletoownersoftheCompanyastheparent | -49,265,150.00 | 106,633,979.81 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | -49,265,150.00 | 106,633,979.81 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -49,265,150.00 | 106,633,979.81 |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | -63,862,151.69 | 235,988,430.34 |
| AttributabletoownersoftheCompanyastheparent | -63,860,419.61 | 235,823,045.41 |
| Attributabletonon-controllinginterests | -1,732.08 | 165,384.93 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | -0.0207 | 0.2301 |
| 8.2Dilutedearningspershare | -0.0207 | 0.2301 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12022 | H12021 |
| 1.Operatingrevenue | 1,078,301,529.20 | 1,410,448,746.19 |
| Less:Costofsales | 970,973,105.63 | 1,208,764,033.69 |
| Taxesandsurcharges | 3,155,384.25 | 4,635,318.65 |
| Sellingexpense | 46,868,501.97 | 61,699,594.15 |
| Administrativeexpense | 30,805,739.43 | 39,946,732.13 |
| R&Dexpense | 38,111,512.10 | 44,159,551.96 |
| Financecosts | -12,522,766.90 | 879,974.12 |
| Including:Interestexpense | 2,512,056.83 | 3,961,226.02 |
| Interestincome | 6,463,613.32 | 4,225,564.97 |
| Add:Otherincome | 1,591,699.00 | 324,000.00 |
| Returnoninvestment(“-”forloss) | 11,181,384.11 | 8,191,724.76 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 677,397.27 | 33,750,000.00 |
| Creditimpairmentloss(“-”forloss) | -18,418,259.44 | -12,089,483.86 |
| Assetimpairmentloss(“-”forloss) | 4,630,554.88 | 903,169.33 |
| Assetdisposalincome(“-”forloss) | 3,985,814.42 | -751,441.20 |
| 2.Operatingprofit(“-”forloss) | 4,558,642.96 | 80,691,510.52 |
| Add:Non-operatingincome | 106,436.47 | 155,765.48 |
| Less:Non-operatingexpense | 551,906.60 | 31,065.09 |
| 3.Profitbeforetax(“-”forloss) | 4,113,172.83 | 80,816,210.91 |
| Less:Incometaxexpense | 0.00 | 5,162,965.63 |
| 4.Netprofit(“-”fornetloss) | 4,113,172.83 | 75,653,245.28 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 4,113,172.83 | 75,653,245.28 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | -49,265,150.00 | 106,633,979.81 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | -49,265,150.00 | 106,633,979.81 |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -49,265,150.00 | 106,633,979.81 |
| 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 | -45,151,977.17 | 182,287,225.09 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12022 | H12021 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 852,422,695.04 | 981,576,052.47 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 21,003,040.54 | 22,968,063.81 |
| Cashgeneratedfromotheroperatingactivities | 15,868,307.49 | 8,267,240.80 |
| Subtotalofcashgeneratedfromoperatingactivities | 889,294,043.07 | 1,012,811,357.08 |
| Paymentsforcommoditiesandservices | 692,753,586.82 | 817,182,988.13 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 171,587,076.85 | 182,319,842.94 |
| Taxespaid | 22,071,086.33 | 23,836,429.52 |
| Cashusedinotheroperatingactivities | 77,182,794.19 | 82,026,216.55 |
| Subtotalofcashusedinoperatingactivities | 963,594,544.19 | 1,105,365,477.14 |
| Netcashgeneratedfrom/usedinoperatingactivities | -74,300,501.12 | -92,554,120.06 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 60,336,793.52 | 20,900,000.00 |
| Returnoninvestment | 11,678,930.55 | 8,666,039.34 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 176.99 | 544,953.88 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 169,856.31 | 220,217.55 |
| Subtotalofcashgeneratedfrominvestingactivities | 72,185,757.37 | 30,331,210.77 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 32,486,960.27 | 89,253,071.04 |
| Paymentsforinvestments | 126,279,631.00 | 49,250,000.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 50,000.00 | |
| Subtotalofcashusedininvestingactivities | 158,766,591.27 | 138,553,071.04 |
| Netcashgeneratedfrom/usedininvestingactivities | -86,580,833.90 | -108,221,860.27 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 634,999,996.40 | |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 7,000,000.00 | |
| Cashgeneratedfromotherfinancingactivities | 49,395,924.99 | 1,391,000.00 |
| Subtotalofcashgeneratedfromfinancingactivities | 49,395,924.99 | 643,390,996.40 |
| Repaymentofborrowings | 12,000,000.00 | |
| Interestanddividendspaid | 18,895,164.72 | 585,750.44 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 2,604,075.01 | 12,694,718.67 |
| Subtotalofcashusedinfinancingactivities | 21,499,239.73 | 25,280,469.11 |
| Netcashgeneratedfrom/usedinfinancingactivities | 27,896,685.26 | 618,110,527.29 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | ||
| 5.Netincreaseincashandcashequivalents | -132,984,649.76 | 417,334,546.96 |
| Add:Cashandcashequivalents,beginningoftheperiod | 573,623,529.10 | 629,939,540.50 |
| 6.Cashandcashequivalents,endoftheperiod | 440,638,879.34 | 1,047,274,087.46 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12022 | H12021 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 786,613,668.93 | 894,925,360.60 |
| Taxrebates | 15,030,607.99 | 17,264,845.63 |
| Cashgeneratedfromotheroperatingactivities | 11,394,587.24 | 6,892,535.60 |
| Subtotalofcashgeneratedfromoperatingactivities | 813,038,864.16 | 919,082,741.83 |
| Paymentsforcommoditiesandservices | 656,683,755.72 | 781,316,544.81 |
| Cashpaidtoandforemployees | 142,487,390.71 | 155,951,400.17 |
| Taxespaid | 17,126,241.78 | 17,244,260.55 |
| Cashusedinotheroperatingactivities | 65,961,229.60 | 70,426,536.35 |
| Subtotalofcashusedinoperatingactivities | 882,258,617.81 | 1,024,938,741.88 |
| Netcashgeneratedfrom/usedinoperatingactivities | -69,219,753.65 | -105,856,000.05 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | ||
| Returnoninvestment | 11,181,384.11 | 8,191,724.76 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 43,495.14 | |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 11,181,384.11 | 8,235,219.90 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 3,984,411.73 | 4,226,730.46 |
| Paymentsforinvestments | 53,520,800.00 | 186,250,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 57,505,211.73 | 190,476,730.46 |
| Netcashgeneratedfrom/usedininvestingactivities | -46,323,827.62 | -182,241,510.56 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 634,999,996.40 | |
| Borrowingsraised | ||
| Cashgeneratedfromotherfinancingactivities | 49,395,924.99 | 1,391,000.00 |
| Subtotalofcashgeneratedfromfinancingactivities | 49,395,924.99 | 636,390,996.40 |
| Repaymentofborrowings | 5,000,000.00 | |
| Interestanddividendspaid | 18,348,005.18 | 109,958.35 |
| Cashusedinotherfinancingactivities | 47,604,075.01 | 12,694,318.18 |
| Subtotalofcashusedinfinancingactivities | 65,952,080.19 | 17,804,276.53 |
| Netcashgeneratedfrom/usedinfinancingactivities | -16,556,155.20 | 618,586,719.87 |
| 4.Effectofforeignexchangerateschangesoncashandcash |
| equivalents | ||
| 5.Netincreaseincashandcashequivalents | -132,099,736.47 | 330,489,209.26 |
| Add:Cashandcashequivalents,beginningoftheperiod | 476,410,739.41 | 559,573,331.81 |
| 6.Cashandcashequivalents,endoftheperiod | 344,311,002.94 | 890,062,541.07 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’EquityH12022
Unit:RMB
| Item | H12022 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 705,692,507.00 | 640,676,218.40 | 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 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 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 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -542,255.39 | -49,265,150.00 | -32,943,274.79 | -82,750,680.18 | 50,331,824.28 | -32,418,855.90 | |||||||
| 3.1Totalcomprehensiveincome | -49,265,150.00 | -14,595,269.61 | -63,860,419.61 | -1,732.08 | -63,862,151.69 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -542,255.39 | -542,255.39 | 50,333,556.36 | 49,791,300.97 | |||||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | -542,255.39 | -542,255.39 | 50,333,556.36 | 49,791,300.97 | |||||||||
| 3.3Profitdistribution | -18,348,005.18 | -18,348,005.18 | -18,348,005.18 | ||||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||||
| 3.3.2Appropriationtogeneralreserve |
| 3.3.3Appropriationtoowners(orshareholders) | -18,348,005.18 | -18,348,005.18 | -18,348,005.18 | ||||||||||
| 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 | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | |||||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 640,133,963.01 | 456,746,349.55 | 18,812,950.04 | 334,144,488.46 | 839,269,080.09 | 2,994,799,338.15 | 69,756,055.26 | 3,064,555,393.41 |
H12021
Unit:RMB
| Item | H12021 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 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.BalanceasatthebeginningoftheReportingPeriod | 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 | 106,633,979.81 | 129,189,065.60 | 856,488,779.38 | 165,384.93 | 856,654,164.31 | ||||||
| 3.1Totalcomprehensiveincome | 106,633,979.81 | 129,189,065.60 | 235,823,045.41 | 165,384.93 | 235,988,430.34 | ||||||||
| 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 | |||||||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||||
| 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 | |||||||||||||
| 3.5.1Increaseintheperiod | |||||||||||||
| 3.5.2Usedintheperiod | |||||||||||||
| 3.6Other | |||||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 640,676,218.40 | 532,116,738.05 | 18,812,986.55 | 325,451,531.14 | 907,088,145.26 | 3,129,838,126.40 | 19,663,974.08 | 3,149,502,100.48 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParentH12022
Unit:RMB
| Item | H12022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 705,692,507.00 | 659,418,700.67 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 756,037,052.58 | 2,980,117,198.30 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 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 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -49,265,150.00 | -14,234,832.35 | -63,499,982.35 | |||||||||
| 3.1Totalcomprehensiveincome | -49,265,150.00 | 4,113,172.83 | -45,151,977.17 | |||
| 3.2Capitalincreasedandreducedbyowners | ||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||
| 3.2.4Other | ||||||
| 3.3Profitdistribution | -18,348,005.18 | -18,348,005.18 | ||||
| 3.3.1Appropriationtosurplusreserves | ||||||
| 3.3.2Appropriationtoowners(orshareholders) | -18,348,005.18 | -18,348,005.18 | ||||
| 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 | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 456,746,349.55 | 18,812,950.04 | 334,144,488.46 | 741,802,220.23 | 2,916,617,215.95 |
H12021
Unit:RMB
| Item | H12021 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 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.BalanceasatthebeginningoftheReportingPeriod | 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 | 106,633,979.81 | 75,653,245.28 | 802,952,959.06 | |||||
| 3.1Totalcomprehensiveincome | 106,633,979.81 | 75,653,245.28 | 182,287,225.09 | |||||||
| 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 | ||||||||||
| 3.3.1Appropriationtosurplusreserves | ||||||||||
| 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 | ||||||||||
| 3.5.1Increaseintheperiod | ||||||||||
| 3.5.2Usedintheperiod | ||||||||||
| 3.6Other | ||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 532,116,738.05 | 18,812,986.55 | 325,451,531.14 | 753,453,682.03 | 2,994,946,145.44 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
III.CompanyProfile
ChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)wasfoundedon5May1994,whichisacompanylimitedbysharespromotedsolelybyChangzhouDieselEnginePlantthroughtheapprovalbytheStateCommissionforRestructuringtheEconomicSystemswithdocumentTGS[1993]No.9on15January1993bywayofpublicofferingofshares.WiththeapprovedofthePeople’sGovernmentofJiangsuProvinceSZF[1993]No.67,aswellasreexaminedandapprovedbyChinaSecuritiesRegulatoryCommission(“CSRC”)throughdocumentZJFSZ(1994)No.9,theCompanyinitiallyissuedAsharestothepublicfrom15March1994to30March1994.AsapprovedbytheShenzhenStockExchangethroughdocumentSZSFZ(1994)No.15,suchtradablesharesofthepublicgotlistingon1July1994atShenzhenStockExchangewith“SuChangchaiA”forshortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).In1996,withtherecommendationoftheOfficeofthePeople’sGovernmentofJiangsuProvinceSZBH[1996]No.13,aswellasfirstreviewbyShenzhenMunicipalSecuritiesAdministrationOfficethroughSZBZ[1996]No.24,andapprovaloftheStateCouncilSecuritiesCommissionZWF[1996]No.27,theCompanyissued100millionBsharestoqualifiedinvestorson27August1996to30August1996,gettinglistedon13September1996.On9June2006,theCompanyheldashareholders’generalmeetingrelatedtoAsharesmarkettoexamineandapprovesharemergerreformplan,andperformedthesharemergerreformon19June2006.Asexaminedandapprovedatthe2
ndExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange.Asat31December2020,thetotalsharecapitaloftheCompanyis561,374,326.00shares,aswellasregisteredcapitalofRMB561,374,326.00,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.AndtheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.On9April2020,theCompanyheldthe24
thMeetingofthe8
th
BoardofDirectors,wherethe2020ProposalonChangchaiCo.,Ltd.Non-publicIssuancewasdeliberatedandadopted.TheCompanyintendedtomakeanon-publicissuanceofdomesticlistedRMBordinarysharestospecifictargets,whichwasapprovedbythecontrollingshareholderChangzhouInvestmentGroupCo.,Ltd.,anddeliberatedandadoptedbythe2019annualgeneralmeeting.On18September2020,theCompany'sBoardofDirectorsdeliberatedandadoptedtheamendmentsrelatedtothenon-publicissuanceofsharesatanExtraordinaryGeneralMeeting.TheCompanysupplementedandimprovedtheforegoingproposalinaccordancewiththerelevantamendments,andcompiledthe2020ProposalonChangchaiCo.,Ltd.Non-publicIssuance(Amendment),whichwasdeliberatedandadoptedbythesecondExtraordinaryGeneralMeetingin2020.TheCompanyoffered144,318,181RMBordinaryshares(Ashares)inanon-publicmanner.TheissuingpricewasRMB4.40pershare,thetotalamountraisedwasRMB634,999,936.40,andthenetamountraisedwasRMB622,499,996.40.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B062)wasissued.Thenewsharesissuedinanon-publicmannerwerelistedontheShenzhenStockExchangeon5July2021.TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,
assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproductionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelofChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combineharvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsetsandshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedintheReportingPeriod.TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson22August2022.TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand8subsidiaries.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
Notificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthefinancialinstruments,withdrawalmethodofthebaddebtprovisionoftheaccountsreceivable,themeasurementoftheinventoryandthedepreciationofthefixedassetsetc.
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,while
thedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)BusinesscombinationsnotunderthesamecontrolAbusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatementsTheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofa
subsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthefinancialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationasparticipatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjusttheperiod-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthecomparedstatement.Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthecurrentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.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,derivativefinancial
assetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
⑤FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandderivativefinancialliabilitieswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialliabilitiesshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthecarryingvalueandthepaidconsiderationshallberecordedintothecurrentprofitorloss.
⑥FinancialliabilitiesatamortizedcostFinancialliabilitiesatamortizedcostincludeshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayableswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthepaidconsiderationandthecarryingvalueofthefinancialliabilitiesshallberecordedintothecurrentprofitorloss.
(3)RecognitionBasisandMeasurementofTransferofFinancialAssetsWheretheCompanyhastransferrednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethetransferredfinancialasset.WheretheCompanydoesnottransferorretainnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itshalldealwithitaccordingtothecircumstancesasfollows,respectively:(1)Ifitgivesupitscontroloverthefinancialasset,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities;(2)Ifitdoesnotgiveupitscontroloverthefinancialasset,itshall,accordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset,recognizetherelatedfinancialassetandrecognizetherelevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueofthetransferredfinancialassetonthederecognitiondate;(2)Thesumofconsiderationreceivedfromthetransferoffinancialassets,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,theentirecarryingvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped,beapportionedaccordingtotheirrespectiverelativefairvalueonthetransferdate,andthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueoftheportionwhoserecognitionhasbeenstopped;(2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstopped,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.
(4)DerecognitionBasisofFinancialLiabilitiesAfinancialliabilityorpartofitcanbederecognizedafteritscurrentobligationhasbeenrelievedinfullorinpart.
(5)RecognitionofFairValueofFinancialAssetsandFinancialLiabilitiesThefairvalueoffinancialinstrumentswithanactivemarketisdeterminedbythequotedpriceintheactivemarket.Forfinancialinstrumentswithoutactivemarket,thefairvalueisdeterminedbyvaluationtechniques.TheCompanyadoptsthevaluationtechniquesapplicabletothecurrentconditionswhicharesupportedbysufficientdataandotherinformationforvaluation,andselectstheinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinassetorliabilitytransactions,withprioritytoobservableinputvalues.Unobservableinputvaluesareusedonlywhenrelevantobservableinputvaluesarenotavailableorpractical.
(6)Impairmentoffinancialinstrument
①ImpairmentmeasurementandaccountinghandlingoffinancialinstrumentBasedonexpectedcreditloss,theCompanyconductsimpairmenthandlingandconfirmscreditimpairmentlossforfinancialassetswhichismeasuredbyamortizedcost,debtinstrumentinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,financialguaranteecontract.Expectedcreditlossreferstoweightedaverageofcreditlossoffinancialinstrumentwhichtakestheriskofcontractbreachoccurrenceastheweight.Creditlossreferstothedifferencebetweenallcontractcashflowwhichisconvertedintocashaccordingtoactualinterestrateandreceivableaccordingtocontractandallcashflowwhichtobechargedasexpected,i.e.currentvalueofallcashshortage.Amongit,asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,itshouldbeconvertedintocashaccordingactualinterestrateofthisfinancialassetaftercreditadjustment.Lifetimeexpectedcreditlossesrefertothosecausedbypossibledefaultsduringtheentireexpecteddurationofafinancialinstrument.Theexpectedcreditlossesinthenext12monthsreferstothosecausedbythedefaulteventsofthefinancialinstrumentthatmayoccurwithin12months(ortheexpecteddurationiftheexpecteddurationofthefinancialinstrumentislessthan12months)afterthebalancesheetdate,andispartoftheexpectedcreditlossesintheentireduration.Oneachbalancesheetdate,theCompanyrespectivelymeasuredtheexpectedcreditlossesoffinancialinstrumentsindifferentstages.Ifthecreditriskofafinancialinstrumenthashadnosignificantincreasesinceitsinitialrecognition,theinstrumentshallfallinthefirststage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesinthefuture12months.Ifthecreditriskofafinancialinstrumenthashadasignificantincreasesinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,theinstrumentshallfallinthesecondstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Ifthecreditimpairmenthasoccurredsinceitsinitialrecognition,thefinancialinstrumentshallfallinthethirdstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Asforafinancialinstrumentwithlowcreditrisksonthebalancesheetdate,theCompanymeasuredthelossreservesaccordingtotheexpectedcreditlossesinthefuture12months,assumingthatitscreditriskhashadnosignificantincreasesinceitsinitialrecognition.Forfinancialinstrumentswithlowcreditrisksinstages1and2,theCompanycalculatedtheinterestincomeattheeffectiveinterestrateandonthecarryingamountoftheinstrumentswithoutdeductionsforprovisionsforassetimpairment.Forfinancialinstrumentsinstage3,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,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Group2ofnotesreceivable | Bank’sacceptancebillswithlowcreditrating | |
| Accountsreceivablefinancing | Bank’sacceptancebillswithhighcreditrating | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Accountsreceivable-creditriskcharacteristicsgroup | Accountsreceivableportfoliowithcreditperiod | Preparethecomparativelistbetweenagingofaccountsreceivableandexpectedcreditlossrateovertheentirelifeandcalculatetheexpectedcreditlossbyconsultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation.TheCompanytakesagingascreditriskcharacteristicsgroupsandcalculatestheexpectedcreditlossforaccountsreceivable. |
| Accountsreceivable-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Basisforrecognizinggroupsofotherreceivablesisasfollows:
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Group1ofotherreceivables | Otherreceivablesexcludingthosefromrelatedparties-aginggroup | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
| Group2ofotherreceivables | Relatedpartywithintheconsolidation | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfuture |
| scope | economicsituation,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,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproduct
lineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;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)whichmeetwiththefollowingconditionsas
assetsheldforsale:
(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-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecost
whichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)AninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethodWheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)AninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethodWheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheCompany,shouldbeadjustedaccordingtotheaccountingpoliciesoftheCompanyandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheCompanyaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.
TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theCompanyshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoowners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheCompanyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethe
controlofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
19.InvestmentRealEstateMeasurementmodeofinvestmentrealestate:
MeasurementofcostmethodDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
20.FixedAssets
(1)RecognitionConditionsFixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
| Categoryoffixedassets | Method | Usefullife | Annualdeprecation |
| Housingandbuilding | Averagemethodofusefullife | 20-40years | 2.50%-5% |
| Machineryequipment | Averagemethodofusefullife | 6-15years | 6.67%-16.67% |
| Transportationequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
| Otherequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLeaseTheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
1)Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevantconditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscouldbetransferredtotheCompany;
2)TheCompanyownsthechoosingrightforpurchasingandleasingthefixedassets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinanceleasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyontheleasestartingdate;
3)Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%oraboveoftheusefullifeoftheleasefixedassets;
4)ThecurrentvalueoftheminimumleasepaymentontheleasestartingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;
5)ThenatureoftheleaseassetsisspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.Thefixedassetsbyfinanceleaseshouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumleasepaymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedastheentryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancingexpense.Fortheinitialdirectexpensesoccurintheleasenegotiationsandthesigningprocessoftheleasecontractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedbyadoptingtheactualinterestrateduringtheperiodoftheleaseterm.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife
21.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforward
fixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
22.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)TheperiodofcapitalizationofborrowingcostsTheborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesandinventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
23.IntangibleAssets
(1)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.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fair
valueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
25.Long-termDeferredExpensesLong-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
26.ContractLiabilitiesContractliabilitiesrefertotheCompany’sobligationsintransferringcommoditiesorservicestotheclientforthereceivedorpredictedconsideration.Contractassetsandcontractliabilitiesunderthesamecontractshallbepresentedbasedonthenetamount.
27.EmployeeBenefits
(1)AccountingTreatmentofShort-termCompensationShort-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemissionTheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefined
contributionplans.DefinedcontributionplansDuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
28.LeaseLiabilitiesOnthecommencementdateoftheleaseterm,theCompanyrecognizesthepresentvalueofunpaidleasepaymentsasleaseliabilities.Leasepaymentsinclude:fixedpaymentandsubstantialfixedpayment,andtherelevantamountaftertheleaseincentive(ifany)isdeducted;variableleasepaymentsthatdependonindexationorratio,whicharedeterminedaccordingtotheindexationorratioonthecommencementdateoftheleasetermintheinitialmeasurement;exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease;andestimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee.TheCompanyusestheinterestrateimplicitinleaseastherateofdiscountwhencalculatingthepresentvalueoftheleasepayments.Theincrementallendingrateofthelesseewillbeusedastherateofdiscount,iftheinterestrateimplicitinleasecannotbedetermined.TheCompanycalculatestheinterestchargeoftheleaseliabilitiesineachperiodoftheleasetermatafixedperiodicinterestrateandincludesitintheprofitorlossofthecurrentperiod,unlesssuchinterestchargeisstipulatedtobeincludedintheunderlyingassetcosts.Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilitiesshouldbeincludedintheprofitorlossofthecurrentperiodwhentheyareactuallyincurred,unlesssuchpaymentsarestipulatedtobeincludedintheunderlyingassetcosts.TheCompanywillre-calculatetheleaseliabilitiesusingthepresentvalueofthechangedleasepayments,ifthesubstantialfixedpayment,theestimatedpaymentsduetotheguaranteedresidualvalue,theindexorrateusedtodeterminetheleasepayments,ortheassessmentresultofthecalloption,therenewaloption,ortheterminationoption,ortheactualexercisechanges,afterthecommencementdateoftheleaseterm.
29.Provisions
(1)CriteriaofprovisionsOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)Measurementofprovisions
TheCompanyshallmeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.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.TheCompanyshallestimatetheindependentsellingpricebycomprehensivelyconsideringallrelatedinformationthatcanbereasonablyobtainedandmaximallyadoptingtheobservableinputvalue.VariableConsiderationIfanyvariableconsiderationexistsinthecontract,theCompanyshalldeterminetheoptimalestimationofthevariableconsiderationbasedontheexpectedvaluesorthemostpossibleamount.Thevariableconsideration’stransactionpriceshallbeincludedwithoutexceedingthetotalrevenueamountrecognizedwithouttheriskof
significantrestitutionwhenalluncertaintiesareeliminated.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.LeaseTheterm"lease"referstoacontractwherebythelessortransferstherightofuseregardingtheleasedasset(s)tothelesseewithinaspecifiedtimeinexchangeforconsideration.Fromtheeffectivedateofacontract,theCompanyassesseswhetherthecontractisaleaseorincludesanylease.Ifapartytothecontracttransferredtherightallowingthecontrolovertheuseofoneormoreassetsthathavebeenidentifiedwithinacertainperiod,inexchangeforaconsideration,suchcontractisaleaseorincludesalease.Ifacontractcontainsmultiplesingleleasesatthesametime,theCompanywillsplitthecontract,andconductaccountingtreatmentofeachsingleleaserespectively.Ifacontractcontainsbothleaseandnon-leasepartsatthesametime,thelesseeandlessorwillsplittheleaseandnon-leaseparts.
(1)TheCompanyasthelesseeSeeNote28(leaseliabilities)forthegeneralaccountingtreatmentoftheCompanyasthelessee.Forshort-termleaseswithaleasetermnotexceeding12monthsandleasesoflow-valueassetswhensingleleasedassetsarebrandnewassets,theCompanychoosesnottorecognizeright-of-useassetsandleaseliabilities,andrecordsrelevantrentalexpensesintotheprofitorlossofthecurrentperiodortheunderlyingassetcostsonastraight-linebasisineachperiodwithintheleaseterm.Ifaleasechangesandmeetsthefollowingconditionsatthesametime,theCompanywillaccountfortheleasechangeasaseparatelease:theleasechangeexpandstheleasescopebyincreasingtherighttouseoneormoreleasedassets;theincreasedconsiderationisequivalenttotheseparatepriceoftheexpandedleasescopeadjustedaccordingtothecontract.Wheretheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theCompanywillallocatetheconsiderationofthechangedcontractandre-determinethechangedleaseterm.Thepresentvaluedeterminedbasedonthechangedleasepaymentsandtherevisedrateofdiscountareusedtoremeasuretheleaseliabilities.
(2)TheCompanyasthelessorOnthecommencementdateoftheleaseterm,theCompanyclassifiestheleasesthatsubstantiallytransferalmostallrisksandrewardsrelatedtotheownershipoftheleasedassetsasfinanceleases,andleasesotherthanfinanceleasesasoperatingleases.
1)OperatingleaseTheCompanyrecognizestheleasepaymentsreceivableasrentalsineachperiodwithintheleasetermonastraight-linebasis.TheCompanycapitalizestheinitialdirectcostsrelatedtooperatingleasesuponincurrencethereofandapportionsandincludessuchcostsintheprofitorlossofthecurrentperiodonthebasissameastherecognitionofrentals.Thereceivedvariableleasepaymentsrelatedtooperatingleasesthatarenotincludedintheleasepaymentsreceivableareincludedinprofitorlossofthecurrentperiodwhentheyareactuallyincurred.
2)FinancialleaseOnthecommencementdateoftheleaseterm,theCompanyrecognizesthefinanceleasereceivablesonthebasisofnetinvestmentinthelease(thesumoftheunguaranteedresidualvalueandthepresentvalueoftheleasepaymentsreceivablenotyetreceivedonthecommencementdateoftheleasetermdiscountedattheinterestrateimplicitinlease)andderecognizestheleasedassetofthefinancelease.TheCompanycalculatesandrecognizesinterestincomebasedontheinterestrateimplicitinleaseineachperiodwithintheleaseterm.Thereceivedvariableleasepaymentsthatarenotcoveredinthemeasurementofthenetinvestmentintheleaseareincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.
(3)SaleandleasebackTheCompanyassesseswhethertheassettransferinasaleandleasebacktransactionisasaleinaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.14-Income.
1)TheCompanyasthelesseeIftheassettransferinasaleandleasebacktransactionisasale,theCompanymeasurestheright-of-useassetsformedbythesaleandleasebackbasedontheportionoftheoriginalasset'scarryingvaluethatisrelatedtotheuserightacquiredbytheleaseback,andrecognizesrelatedgainsorlossesonlyfortherighttransferredtothelessor.Iftheassettransferinasaleandleasebacktransactionisnotasale,theCompanycontinuestorecognizethetransferredassetandatthesametimerecognizesafinancialliabilityequivalenttothetransferincome,andconductscorrespondingaccountingtreatmentforthefinancialliabilityinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
2)TheCompanyasthelessorIftheassettransferinasaleandleasebacktransactionisasale,theCompanyappliesotheraccountingstandardsforbusinessenterprisestotheaccountingtreatmentforassetpurchase,andconductscorrespondingaccountingtreatmentforassetleaseinaccordancewiththeAccountingStandardforBusinessEnterprisesNo.21-Leases.Iftheassettransferinasaleandleasebacktransactionisnotasale,theCompanydoesnotrecognizethetransferredasset,butrecognizesafinancialassetequivalenttothetransferincome,andconductscorrespondingaccountingtreatmentforthefinancialassetinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.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.
Estimatingthepresentvalueoffuturecashflowsrequiressignificantjudgmentswithrespecttotheproductionvolumeoftheasset(orassetgroup),thesellingprice,therelatedoperatingcostsandthediscountrateusedincalculatingthepresentvalue.TheCompanyusesallavailablerelevantinformationinestimatingrecoverableamounts,includingprojectionsofvolumes,sellingpricesandrelatedoperatingcostsbasedonreasonableandsupportableassumptions.
(6)DepreciationandamortizationTheCompanydepreciatesandamortizesinvestmentproperties,fixedassetsandintangibleassetsonastraight-linebasiswithintheirservicelivesaftertakingintoaccounttheirresidualvalues.TheCompanyregularlyreviewsservicelivestodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.TheservicelifeisdeterminedbytheCompanybasedonpastexperiencewithsimilarassetsandexpectedtechnologicalupdates.Depreciationandamortizationexpenseswillbeadjustedinthefutureperiodifthereisasignificantchangeinpreviousestimates.
(7)DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.
(8)IncometaxInthenormaloperatingactivitiesoftheCompany,theultimatetaxtreatmentandcalculationofcertaintransactionsaresubjecttocertainuncertainties.Whethersomeitemscanbedisbursedbeforetaxrequirestheapprovalofthetaxauthorities.Ifthefinaldeterminationofthesetaxmattersdiffersfromtheamountsinitiallyestimated,thedifferencewillhaveanimpactoncurrentanddeferredincometaxesintheperiodinwhichtheyarefinallydetermined.
35.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
| Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
| TheMinistryofFinanceissuedtheAccountingStandardsforBusinessEnterprisesInterpretationNo.15(CaiKuai[2021]No.35)on30December2021whichgivesaspecificationoffollowingcontents:“Accountingtreatmentforsalesofproductsorby-productsbyenterprisesgeneratedfromfixedassetsbeforereachingtheintendedstateofavailabilityorfromtheperiodofR&D”,“Judgmentononerouscontracts”and“Presentationofcentralizedcapitalmanagement”.InaccordancewiththeAccountingStandardsforBusinessEnterprisesInterpretationNo.15,theCompanyhasimplementedtheprovisionsregardingtheaccountingtreatmentforsalesofproductsorby-productsbyenterprisesgeneratedfromfixedassetsbeforereachingtheintendedstateofavailabilityorfromtheperiodofR&Dsince1January2022,theprovisionsregardingthepresentationofcentralizedcapitalmanagement | On22August2022,the13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteewereheldbytheCompanyonwhichtheProposalonChangesof |
| since30December2021,andtheprovisionsregardingjudgmentononerouscontractssince1January2022.ThischangeinaccountingpoliciesdoesnotinvolvetheretrospectiveadjustmentoftheCompanyinpreviousyears,nordoesitadjustthedatainthecomparativefinancialstatementsofthepreviousperiod. | AccountingPolicieswasapproved. |
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
VI.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Payabletosalesrevenue | 13%,9%,6% |
| 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% |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 25% |
2.TaxPreferenceOn30November2021,theCompanyobtainedtheCertificatesforHigh-techEnterprisesagain,anditstillenjoys15-percentpreferentialrateforcorporateincometaxduringtheReportingPeriod;theCompany’scontrollingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%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 | 201,776.86 | 145,594.98 |
| Bankdeposits | 447,927,242.99 | 561,746,767.12 |
| Othermonetaryassets | 124,092,806.64 | 146,074,316.64 |
| Total | 572,221,826.49 | 707,966,678.74 |
| Totalamountofrestrictioninusebymortgage,pledgeorfreeze | 123,582,947.15 | 145,564,457.15 |
Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB123,582,947.15,ofwhichRMB125,778,577.60wasthecashdepositforbankacceptancebills,RMB2,993,220.00wascashdepositforL/GandRMB797,589.55wascashdepositforenvironment.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 403,981,913.88 | 404,053,261.57 |
| Ofwhich: | ||
| Stocks | 104,304,516.61 | 121,940,343.76 |
| Financialproducts | 299,677,397.27 | 282,112,917.81 |
| Ofwhich: | ||
| Total | 403,981,913.88 | 404,053,261.57 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 481,963,539.81 | 334,311,236.78 |
| Total | 481,963,539.81 | 334,311,236.78 |
Ifthebaddebtprovisionfornotesreceivablewaswithdrawninaccordancewiththegeneralmodelofexpectedcreditlosses,informationrelatedtobaddebtprovisionshallbedisclosedbyreferencetothedisclosuremethodofotherreceivables:
□Applicable√Notapplicable
(2)ThereWereNoNotesReceivablePledgedbytheCompanyatthePeriod-end
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 247,086,575.81 | |
| Total | 247,086,575.81 |
(4)ThereWereNoNotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreementatthePeriod-end
4.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carrying | Carryingamount | Baddebtprovision | Carryingvalue | |
| Amount | Proportion | Amount | Withdrawalproportion | value | Amount | Proportion | Amount | Withdrawalproportion | ||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 46,656,944.03 | 4.21% | 43,334,335.44 | 92.88% | 3,322,608.59 | 50,437,453.63 | 9.10% | 44,054,367.15 | 87.34% | 6,383,086.48 |
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 1,060,290,561.35 | 95.79% | 148,156,484.74 | 13.97% | 912,134,076.61 | 504,092,720.08 | 90.90% | 135,266,680.08 | 26.83% | 368,826,040.00 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 1,060,290,561.35 | 95.79% | 148,156,484.74 | 13.97% | 912,134,076.61 | 504,092,720.08 | 90.90% | 135,266,680.08 | 26.83% | 368,826,040.00 |
| Total | 1,106,947,505.38 | 100.00% | 191,490,820.18 | 17.30% | 915,456,685.20 | 554,530,173.71 | 100.00% | 179,321,047.23 | 32.34% | 375,209,126.48 |
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 | 1,962,873.80 | 1,962,873.80 | 100.00% | Difficulttorecover |
| Customer10 | 2,790,920.00 | 2,790,920.00 | 100.00% | Difficulttorecover |
| Customer11 | 2,025,880.18 | 2,025,880.18 | 100.00% | Difficulttorecover |
| Customer12 | 2,589,892.74 | 2,589,892.74 | 100.00% | Difficulttorecover |
| Customer13 | 2,837,045.23 | 2,837,045.23 | 100.00% | Difficulttorecover |
| Customer14 | 5,972,101.90 | 5,972,101.90 | 100.00% | Difficulttorecover |
| Customer15 | 4,592,679.05 | 4,592,679.05 | 100.00% | Difficulttorecover |
| Total | 44,409,551.31 | 41,086,942.72 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 902,418,413.99 | 18,048,368.28 | 2.00% |
| 1to2years | 21,100,490.04 | 1,055,024.50 | 5.00% |
| 2to3years | 5,388,349.99 | 808,252.50 | 15.00% |
| 3to4years | 2,526,740.52 | 758,022.16 | 30.00% |
| 4to5years | 3,424,373.75 | 2,054,624.25 | 60.00% |
| Over5years | 125,590,924.31 | 125,432,193.06 | 100.00% |
| Total | 1,060,449,292.60 | 148,156,484.74 | -- |
Notesofthebasisofdeterminingthegroup:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsincurredactually,amongwhichtheaccountsincurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 902,802,395.40 |
| 1to2years | 43,871,882.94 |
| 2to3years | 7,616,504.48 |
| Over3years | 152,656,722.56 |
| 3to4years | 4,476,490.08 |
| 4to5years | 5,960,663.50 |
| Over5years | 142,219,568.98 |
| Total | 1,106,947,505.38 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
| Withdrawal | Reversalorrecovery | Write-off | |||
| Baddebtprovisionwithdrawnseparately | 44,054,367.15 | 720,031.71 | 43,334,335.44 | ||
| Baddebtprovisionwithdrawnbygroup | 135,266,680.08 | 12,889,804.66 | 148,156,484.74 | ||
| Total | 179,321,047.23 | 12,889,804.66 | 720,031.71 | 191,490,820.18 | |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)ThereWereNoAccountsReceivablewithActualVerificationduringtheReportingPeriod.
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 567,626,334.55 | 51.28% | 11,352,526.69 |
| Customer2 | 57,715,364.53 | 5.21% | 1,154,307.29 |
| Customer3 | 18,252,915.05 | 1.65% | 365,058.30 |
| Customer4 | 18,121,707.37 | 1.64% | 362,434.15 |
| Customer5 | 16,876,870.97 | 1.52% | 337,537.42 |
| Total | 678,593,192.47 | 61.30% |
5.AccountsReceivableFinancing
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 109,896,100.86 | 497,388,826.02 |
| Total | 109,896,100.86 | 497,388,826.02 |
ChangesofaccountsreceivablefinancingandfairvaluethereofintheReportingPeriod
□Applicable√NotapplicablePleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivablefinancing.
□Applicable√NotapplicableOthernotes:
TheCompanydiscountsandendorsesaportionofitsbankacceptancesbasedonitsroutinefundmanagementneeds,andtheconditionsforderecognitionaremet,sothebankacceptancesareclassifiedasfinancialassetsmeasuredatfairvaluewhosechangeisincludedinothercomprehensiveincome.On30June2022,therewasnobankacceptanceforwhichbaddebtprovisionaccruedseparatelyintheCompany.TheCompanymeasurestheprovisionofbaddebtprovisiononthebasisofexpectedcreditlossesthroughouttheduration.TheCompanybelievesthatthecreditriskcharacteristicsofthebankacceptancesitholdsaresimilar,andtherewasnobankacceptanceforwhichbaddebtprovisionaccruedseparately.Inaddition,therewasnosignificantcreditriskinthebankacceptance,andnosignificantlosswouldbecausedbybankdefaults.
(1)AccountsreceivablefinancingwhichhadendorsedbytheCompanyorhaddiscountedbuthadnotdueattheperiod-end
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 54,899,008.45 | |
| Total | 54,899,008.45 |
6.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 7,585,000.47 | 82.61% | 6,706,970.55 | 81.82% |
| 1to2years | 155,683.67 | 1.70% | 94,583.55 | 1.15% |
| 2to3years | 254,994.24 | 2.78% | 362,397.67 | 4.42% |
| Over3years | 1,186,122.25 | 12.92% | 1,033,466.62 | 12.61% |
| Total | 9,181,800.63 | 8,197,418.39 |
Therewasnoprepaymentwithsignificantamountagingoveroneyearasoftheperiod-end.
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB2,412,325.81accountingfor26.27%ofthetotalendingbalanceofprepayments.
7.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 17,260,272.39 | 19,515,350.52 |
| Total | 17,260,272.39 | 19,515,350.52 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Marginandcashpledge | 1,299,600.00 | 1,299,600.00 |
| Intercoursefunds | 32,732,932.66 | 35,889,738.80 |
| Pettycashandborrowingsbyemployees | 1,313,447.41 | 1,184,204.41 |
| Other | 14,165,823.36 | 13,630,284.64 |
| Total | 49,511,803.43 | 52,003,827.85 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2022 | 287,609.45 | 26,486,676.97 | 5,714,190.91 | 32,488,477.33 |
| Balanceof1 |
| January2022intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | ||||
| ReversaloftheCurrentPeriod | 236,946.29 | 236,946.29 | ||
| Balanceof30June2022 | 50,663.16 | 26,486,676.97 | 5,714,190.91 | 32,251,531.04 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 13,682,698.23 |
| 1to2years | 2,165,331.51 |
| 2to3years | 766,470.37 |
| Over3years | 32,897,303.32 |
| 3to4years | 256,820.18 |
| 4to5years | 1,058,355.18 |
| Over5years | 31,582,127.96 |
| Total | 49,511,803.43 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionforwhichaccruedseparately | 5,714,190.91 | 5,714,190.91 | ||||
| Baddebtprovisionforwhichaccruedbygroup | 26,774,286.42 | 236,946.29 | 26,537,340.13 | |||
| Total | 32,488,477.33 | 236,946.29 | 32,251,531.04 | |||
4)ThereWasNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 5.94% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 5.76% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 3.29% | 1,626,483.25 |
| ChangchaiGroupSettlementCenter | Intercoursefunds | 1,140,722.16 | Over5years | 2.30% | 1,140,722.16 |
| ChangzhouHuadiEngineeringGuaranteeCo.,Ltd. | Engineeringdeposit | 1,065,400.00 | 1to2years | 1.45% | 53,270.00 |
| Total | 9,625,793.43 | 19.44% | 8,613,663.43 |
8.InventoryWhethertheCompanyneedstocomplywiththerequirementsofrealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Rawmaterials | 144,804,663.02 | 7,064,048.12 | 137,740,614.90 | 148,617,321.85 | 7,260,564.47 | 141,356,757.38 |
| Goodsinprocess | 101,886,302.27 | 13,185,471.76 | 88,700,830.51 | 119,354,374.14 | 15,534,236.35 | 103,820,137.79 |
| Finishedgoods | 303,224,440.42 | 10,710,415.19 | 292,514,025.23 | 403,855,588.94 | 13,029,104.26 | 390,826,484.68 |
| Materialsprocessedoncommission | 13,581,935.05 | 0.00 | 13,581,935.05 | 13,877,280.60 | 13,877,280.60 | |
| Lowpricedandeasilywornarticles | 1,163,256.63 | 1,163,256.63 | 1,203,097.73 | 1,203,097.73 | ||
| Total | 564,660,597.39 | 30,959,935.07 | 533,700,662.32 | 686,907,663.26 | 35,823,905.08 | 651,083,758.18 |
(2)FallingPriceReservesandimpairmentprovisionforcontractperformancecosts
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Other | Reversalorwrite-off | Other | |||
| Rawmaterials | 7,260,564.47 | 65,235.32 | 261,751.67 | 7,064,048.12 | ||
| Goodsinprocess | 15,534,236.35 | 222,543.92 | 2,571,308.51 | 13,185,471.76 | ||
| Finishedgoods | 13,029,104.26 | 2,318,689.07 | 10,710,415.19 | |||
| Total | 35,823,905.08 | 287,779.24 | 5,151,749.25 | 30,959,935.07 | ||
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories
9.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 27,698,694.05 | 37,806,274.29 |
| Prepaidcorporateincometax | 582,198.15 | 6,143,886.15 |
| Prepaidexpense | 113,365.74 | 110,662.13 |
| Total | 28,394,257.94 | 44,060,822.57 |
10.InvestmentsinDebtObligations
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Three-yearfixedtermdeposit | 37,898,226.39 | 37,898,226.39 | 37,898,226.39 | 37,898,226.39 | ||
| Total | 37,898,226.39 | 37,898,226.39 | 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 | 37,000,000.00 | 3.80% | 26April2024 | ||
| Total | 37,000,000.00 | 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 | 146,375,646.53 |
| Otherequityinstrumentinvestmentmeasuredbyfairvalue | 575,543,000.00 | 633,502,000.00 |
| Total | 721,918,646.53 | 779,877,646.53 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
| Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
| FotonMotorCo.,Ltd. | 367,151,000.00 | Non-tradingequityinvestment | ||||
| BankofJiangsu | 9,360,000.00 | 123,822,000.00 | Non-tradingequityinvestment | |||
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 46,375,646.53 | Non-tradingequityinvestment |
Othernotes:
Thecorporatesecuritiesofaccommodationbusinessstillonlendingattheperiod-end:4,535,000sharesofFotonMotorCo.,Ltd.
13.OtherNon-currentFinancialAssets
Unit:RMB
14.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Total |
| I.Originalcarryingvalue | ||
| 1.Beginningbalance | 93,077,479.52 | 93,077,479.52 |
| 2.Increasedamountoftheperiod | ||
| (1)Outsourcing | ||
| (2)Transferfrominventories/fixedassets/constructioninprogress | ||
| (3)Enterprisecombinationincrease | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 93,077,479.52 | 93,077,479.52 |
| II.Accumulativedepreciationandaccumulativeamortization | ||
| 1.Beginningbalance | 48,480,224.31 | 48,480,224.31 |
| 2.Increasedamountoftheperiod | 1,218,237.78 | 1,218,237.78 |
| (1)Withdrawaloramortization | 1,218,237.78 | 1,218,237.78 |
| (2)Transferredinto | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 49,698,462.09 | 49,698,462.09 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod |
Item
| Item | Endingbalance | Beginningbalance |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | 112,500,000.00 | 112,500,000.00 |
| Total | 112,500,000.00 | 112,500,000.00 |
| (1)Withdrawal | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue | ||
| 1.Endingcarryingvalue | 43,379,017.43 | 43,379,017.43 |
| 2.Beginningcarryingvalue | 44,597,255.21 | 44,597,255.21 |
15.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 710,380,148.39 | 402,915,521.65 |
| Total | 710,380,148.39 | 402,915,521.65 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 457,375,409.96 | 1,012,550,535.12 | 15,509,653.38 | 41,354,836.97 | 1,526,790,435.43 |
| 2.Increasedamountoftheperiod | 203,847,078.49 | 136,107,529.11 | 3,431,027.22 | 5,374,982.88 | 348,760,617.70 |
| (1)Purchase | 106,424.78 | 28,522.13 | 134,946.91 | ||
| (2)Transferfromconstructioninprogress | 183,680,924.37 | 128,757,743.93 | 2,808,764.69 | 4,971,498.04 | 320,218,931.03 |
| (3)Enterprisecombinationincrease | 20,166,154.12 | 7,349,785.18 | 515,837.75 | 374,962.71 | 28,406,739.76 |
| 3.Decreasedamountoftheperiod | 15,246,966.71 | 117,705.14 | 15,364,671.85 | ||
| (1)Disposalorscrap | 15,246,966.71 | 117,705.14 | 15,364,671.85 | ||
| 4.Endingbalance | 661,222,488.45 | 1,133,411,097.52 | 18,940,680.60 | 46,612,114.71 | 1,860,186,381.28 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 309,538,003.03 | 765,592,089.06 | 12,399,386.82 | 35,864,760.62 | 1,123,394,239.53 |
| 2.Increasedamountoftheperiod | 12,356,859.77 | 26,941,279.63 | 863,834.31 | 772,621.89 | 40,934,595.60 |
| (1)Withdrawal | 8,141,184.51 | 24,883,354.40 | 416,402.05 | 514,726.91 | 33,955,667.87 |
| (2)Merge | 4,215,675.26 | 2,057,925.23 | 447,432.26 | 257,894.98 | 6,978,927.73 |
| 3.Decreasedamountoftheperiod | 0.00 | 14,886,037.53 | 0.00 | 117,238.96 | 15,003,276.49 |
| (1)Disposalorscrap | 14,886,037.53 | 117,238.96 | 15,003,276.49 | ||
| 4.Endingbalance | 321,894,862.80 | 777,647,331.16 | 13,263,221.13 | 36,520,143.55 | 1,149,325,558.64 |
| 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 |
(2)ListofTemporarilyIdleFixedAssets
| Item | Originalcarryingvalue | Accumulativedepreciation | Depreciationreserves | Carryingvalue | Note |
| Machineryequipment | 561,589.50 | 80,915.25 | 480,674.25 |
16.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 75,687,504.60 | 268,417,880.66 |
| Engineeringmaterials | 932,611.70 | 1,887,810.25 |
| Total | 76,620,116.30 | 270,305,690.91 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 1,097,435.90 | 1,097,435.90 | 1,097,435.90 | 1,097,435.90 | ||
| Innovationcapacityconstructionoftechnologycenter | 4,092,290.16 | 4,092,290.16 | 3,714,601.76 | 3,714,601.76 | ||
IV.Carryingvalue
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 339,327,625.65 | 355,283,092.11 | 5,677,459.47 | 10,091,971.16 | 710,380,148.39 |
| 2.Beginningcarryingvalue | 147,837,406.93 | 246,477,771.81 | 3,110,266.56 | 5,490,076.35 | 402,915,521.65 |
| Relocationprojectoflightengineandcasting | 61,644,458.18 | 61,644,458.18 | 254,748,122.49 | 254,748,122.49 | ||
| Equipmenttobeinstalledandpaymentforprojects | 8,853,320.36 | 8,853,320.36 | 8,857,720.51 | 8,857,720.51 | ||
| Total | 75,687,504.60 | 75,687,504.60 | 268,417,880.66 | 268,417,880.66 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 79,000,000.00 | 1,097,435.90 | 1,097,435.90 | Uncompleted | Self-raised | |||||||
| Innovationcapacity | 87,332,900.00 | 3,714,601.76 | 377,688.40 | 4,092,290.16 | 4.69% | Uncompleted | Self-raisedandraisedfunds |
| constructionoftechnologycenter | ||||||||||
| Relocationprojectoflightengineandcasting | 474,706,000.00 | 254,748,122.49 | 115,384,742.86 | 308,488,407.17 | 61,644,458.18 | 77.97% | Uncompleted | Self-raisedandraisedfunds | ||
| Total | 641,038,900.00 | 259,560,160.15 | 115,762,431.26 | 308,488,407.17 | 66,834,184.24 |
(3)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Engineeringmaterials | 932,611.70 | 932,611.70 | 1,887,810.25 | 1,887,810.25 | ||
| Total | 932,611.70 | 932,611.70 | 1,887,810.25 | 1,887,810.25 | ||
17.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 206,783,546.68 | 15,736,719.66 | 5,488,000.00 | 1,650,973.47 | 229,659,239.81 |
| 2.Increasedamountoftheperiod | 7,356,480.86 | 176,723.98 | 50,000.00 | 7,583,204.84 | |
| (1)Purchase | |||||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | 7,356,480.86 | 176,723.98 | 50,000.00 | 7,583,204.84 | |
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 214,140,027.54 | 15,913,443.64 | 5,538,000.00 | 1,650,973.47 | 237,242,444.65 |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 58,805,643.96 | 12,856,960.12 | 2,652,533.14 | 189,356.68 | 74,504,493.90 |
| 2.Increasedamountoftheperiod | 2,810,991.43 | 708,541.25 | 316,495.66 | 81,090.31 | 3,917,118.65 |
| (1)Withdrawal | 2,129,983.97 | 595,634.26 | 273,995.66 | 81,090.31 | 3,080,704.20 |
| (2)Combinationincrease | 681,007.46 | 112,906.99 | 42,500.00 | 836,414.45 | |
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 61,616,635.39 | 13,565,501.37 | 2,969,028.80 | 270,446.99 | 78,421,612.55 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 152,523,392.15 | 2,347,942.27 | 2,568,971.20 | 1,380,526.49 | 158,820,832.11 |
| 2.Beginningcarryingvalue | 147,977,902.72 | 2,879,759.54 | 2,835,466.86 | 1,461,616.79 | 155,154,745.91 |
18.Long-termPrepaidExpenses
Unit:RMB
| Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
| Trademarkrenewalfee | 110,345.30 | 59,794.67 | 1,956.06 | 168,183.91 | |
| Total | 110,345.30 | 59,794.67 | 1,956.06 | 168,183.91 |
19.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Deductibleloss | 59,064,221.02 | 9,085,419.14 | 59,064,221.02 | 9,085,419.14 |
| Baddebtprovision | 7,549,512.71 | 1,175,913.46 | 7,196,880.38 | 1,087,755.38 |
| Inventoryfallingpricereserves | 2,153,192.30 | 372,149.55 | 2,990,223.81 | 448,533.57 |
| Impairmentoffixedassets | 480,674.25 | 72,101.14 | 480,674.25 | 72,101.14 |
| Total | 69,247,600.28 | 10,705,583.29 | 69,731,999.46 | 10,693,809.23 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 5,560,619.60 | 1,025,840.18 | 3,643,147.16 | 546,472.07 |
| Changesinfairvalueofotherequityinstrumentinvestment | 537,348,646.53 | 80,602,296.98 | 595,307,646.53 | 89,296,146.98 |
| Changesinfairvalueofothernon-currentfinancialassets | 36,250,000.00 | 5,437,500.00 | 36,250,000.00 | 5,437,500.00 |
| Changesinfairvalueoftradingfinancialassets | 58,546,907.88 | 14,357,695.47 | 89,101,335.36 | 22,064,042.06 |
| Total | 637,706,174.01 | 101,423,332.63 | 724,302,129.05 | 117,344,161.11 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibleloss | 14,716,019.78 | 14,716,019.78 |
| Baddebtprovision | 216,192,838.51 | 204,612,644.18 |
| Fallingpricereservesofinventories | 28,806,742.77 | 32,833,681.27 |
| Total | 259,715,601.06 | 252,162,345.23 |
(4)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| 2022 | 434,000.66 | 434,000.66 | |
| 2023 | 940,673.56 | 940,673.56 | |
| 2024 | 6,538,363.99 | 6,538,363.99 | |
| 2025 | 2,279,179.37 | 2,279,179.37 | |
| 2026 | 4,523,802.20 | 4,523,802.20 | |
| Total | 14,716,019.78 | 14,716,019.78 |
20.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Advancespaymentofequipments | 11,611,024.84 | 11,611,024.84 | 4,543,240.88 | 4,543,240.88 | ||
| Total | 11,611,024.84 | 11,611,024.84 | 4,543,240.88 | 4,543,240.88 | ||
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 | |
| Obligationtopaybillsdiscountedbeforematurity | 127,395,924.99 | 61,971,466.65 |
| Total | 134,395,924.99 | 73,971,466.65 |
(2)ThereWasNoShort-termBorrowingsOverduebutUnpaid.
22.NotesPayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 565,529,500.00 | 550,774,400.00 |
| Total | 565,529,500.00 | 550,774,400.00 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
23.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 716,529,188.78 | 666,186,668.82 |
| Total | 716,529,188.78 | 666,186,668.82 |
(2)SignificantAccountsPayableAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Paymentforgoods | 12,974,557.92 | Supplierterminatescooperation,pendingpayment |
| Paymentforequipment | 1,845,062.03 | Equipmentwarranty |
| Total | 14,819,619.95 |
24.AdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 411,746.26 | 660,965.62 |
| Total | 411,746.26 | 660,965.62 |
Therewerenosignificantadvancesfromcustomersagingoveroneyearattheendoftheperiod.
25.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Contractliabilities | 39,180,596.15 | 26,864,081.97 |
| Total | 39,180,596.15 | 26,864,081.97 |
Therewerenosignificantcontractliabilitiesagingoveroneyearattheendoftheperiod.
26.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 45,385,667.48 | 149,376,585.46 | 181,427,584.89 | 13,334,668.05 |
| II.Post-employmentbenefit-definedcontributionplans | 18,443,542.01 | 18,443,542.01 | ||
| Total | 45,385,667.48 | 167,820,127.47 | 199,871,126.90 | 13,334,668.05 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 37,375,772.77 | 124,330,031.39 | 156,774,557.85 | 4,931,246.31 |
| 2.Employeewelfare | 1,592.74 | 1,154,031.03 | 1,154,031.03 | 1,592.74 |
| 3.Socialinsurance | 10,884,539.06 | 10,884,539.06 | 0.00 | |
| Ofwhich:Medicalinsurancepremiums | 8,993,646.85 | 8,993,646.85 | 0.00 |
| Work-relatedinjuryinsurance | 1,013,249.35 | 1,013,249.35 | 0.00 | |
| Maternityinsurance | 877,642.86 | 877,642.86 | 0.00 | |
| 4.Housingfund | 10,179,506.00 | 10,179,506.00 | 0.00 | |
| 5.Laborunionbudgetandemployeeeducationbudget | 8,008,301.97 | 2,828,477.98 | 2,434,950.95 | 8,401,829.00 |
| Total | 45,385,667.48 | 149,376,585.46 | 181,427,584.89 | 13,334,668.05 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 17,884,275.01 | 17,884,275.01 | ||
| 2.Unemploymentinsurance | 559,267.00 | 559,267.00 | ||
| Total | 18,443,542.01 | 18,443,542.01 |
27.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 5,196,069.28 | 372,401.11 |
| Corporateincometax | 206,196.36 | 470,363.07 |
| Personalincometax | 66,697.40 | 76,559.47 |
| Urbanmaintenanceandconstructiontax | 790,823.73 | 957,520.42 |
| Propertytax | 1,041,554.72 | 1,160,865.33 |
| Landusetax | 793,050.50 | 1,026,217.69 |
| Stampduty | 29,478.70 | 44,759.84 |
| EducationSurcharge | 100,157.22 | 90,862.46 |
| Comprehensivefees | 1,075,134.76 | 1,075,134.76 |
| Environmentalprotectiontax | 63,389.34 | 31,694.67 |
| Total | 9,362,552.01 | 5,306,378.82 |
28.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 150,033,922.02 | 144,469,939.46 |
| Total | 153,925,355.85 | 148,361,373.29 |
(1)DividendsPayable
Unit:RMB
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 5,005,246.58 | 5,045,246.58 |
| Intercoursefundsamongunits | 5,020,885.02 | 8,364,769.41 |
| Intercoursefundsamongindividuals | 387,661.04 | 402,661.04 |
| Salesdiscountandthreeguarantees | 121,566,325.37 | 114,581,855.32 |
| Other | 18,053,804.01 | 16,075,407.11 |
| Total | 150,033,922.02 | 144,469,939.46 |
2)SignificantOtherPayablesAgingoverOneYearThesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
| Item | Endingbalance | Beginningbalance |
| Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
| Total | 3,891,433.83 | 3,891,433.83 |
29.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 448,414.73 | 460,437.94 |
| Transportationstoragefee | 766,870.71 | 870,397.06 |
| Electriccharge | 3,784,957.96 | 3,131,920.88 |
| Taxtobetransferred | 2,223,378.37 | 2,250,515.65 |
| Estimatedsharevalueaddedtax | 3,267,400.13 | 3,989,913.45 |
| Obligationtopaybillstransferredbeforematurity | 101,680,550.03 | 72,391,302.15 |
| Otherwithholdingexpenses | 5,623,653.25 | 5,843,705.66 |
| Total | 117,795,225.18 | 88,938,192.79 |
30.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentgrants | 39,615,355.40 | 39,615,355.40 | Governmentappropriation | ||
| Total | 39,615,355.40 | 39,615,355.40 | -- |
Iteminvolvinggovernmentgrants:
Unit:RMB
| Item | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengines | 13,040,367.00 | 13,040,367.00 | Relatedtoassets | |||||
| Removecompensation | 18,513,763.98 | 18,513,763.98 | Relatedtoassets |
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 8,061,224.42 | 8,061,224.42 | Relatedtoassets |
31.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 705,692,507.00 | 705,692,507.00 | |||||
32.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium(premiumonstock) | 620,338,243.21 | 620,338,243.21 | ||
| Othercapitalreserves | 20,337,975.19 | 542,255.39 | 19,795,719.80 | |
| Total | 640,676,218.40 | 542,255.39 | 640,133,963.01 |
33.OtherComprehensiveIncome
Unit:RMB
| Item | Beginning | ReportingPeriod | Endin |
| balance | IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | gbalance | |
| I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 506,011,499.55 | -57,959,000.00 | -8,693,850.00 | -49,265,150.00 | 456,746,349.55 | |||
| Changesinfairvalueofotherequityinstrumentinvestment | 506,011,499.55 | -57,959,000.00 | -8,693,850.00 | -49,265,150.00 | 456,746,349.55 | |||
| Totalofothercomprehensiveincome | 506,011,499.55 | -57,959,000.00 | -8,693,850.00 | -49,265,150.00 | 456,746,349.55 |
34.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 18,812,986.55 | 18,812,950.04 | ||
| Total | 18,812,986.55 | 18,812,950.04 |
35.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 320,987,630.56 | 320,987,630.56 |
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | |
| Total | 334,144,488.46 | 334,144,488.46 |
36.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 872,212,354.88 | 777,899,079.66 |
| Beginningbalanceofretainedearningsafteradjustments | 872,212,354.88 | 777,899,079.66 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | -14,592,094.77 | 129,189,065.60 |
| Dividendsofordinarysharespayable | 18,348,005.18 | |
| Endingretainedearnings | 839,272,254.93 | 907,088,145.26 |
Listofadjustmentofbeginningretainedearnings:
(1)RMB0.00beginningretainedearningswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
(2)RMB0.00beginningretainedearningswasaffectedbychangesinaccountingpolicies.
(3)RMB0.00beginningretainedearningswasaffectedbycorrectionofsignificantaccountingerrors.
(4)RMB0.00beginningretainedearningswasaffectedbychangesincombinationscopearisingfromsamecontrol.
(5)RMB0.00beginningretainedearningswasaffectedtotallybyotheradjustments.
37.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,161,021,786.32 | 1,038,738,676.27 | 1,475,253,150.96 | 1,265,262,684.42 |
| Otheroperations | 17,200,705.72 | 12,656,556.15 | 21,917,304.84 | 18,852,045.04 |
| Total | 1,178,222,492.04 | 1,051,395,232.42 | 1,497,170,455.80 | 1,284,114,729.46 |
Relevantinformationofrevenue:
Unit:RMB
| Categoryofcontracts | Segment1 |
| ProductTypes | |
| Ofwhich: |
| Single-cylinderdieselengines | 440,462,569.28 |
| Multi-cylinderdieselengines | 612,150,701.94 |
| Otherproducts | 88,912,608.25 |
| Fittings | 36,696,612.57 |
| Classifiedbybusinessarea | |
| Ofwhich: | |
| Salesindomesticmarket | 1,019,205,712.35 |
| Exportsales | 159,016,779.69 |
| Total | 1,178,222,492.04 |
Informationrelatedtoperformanceobligations:none
38.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 812,411.02 | 1,026,604.02 |
| Educationsurcharge | 579,085.68 | 733,288.56 |
| Propertytax | 1,817,465.17 | 1,887,353.62 |
| Landusetax | 1,586,101.00 | 1,817,778.95 |
| Vehicleandvesselusetax | 201,437.50 | 270,741.50 |
| Stampduty | 207,601.82 | 402,556.65 |
| Environmenttax | 102,066.70 | 60,179.21 |
| Other | 54,256.65 | 56,775.69 |
| Total | 5,360,425.54 | 6,255,278.20 |
39.SellingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 16,943,256.62 | 17,526,685.96 |
| Officeexpenses | 3,724,135.21 | 4,736,523.65 |
| Salespromotionalexpense | 3,274,025.90 | 6,212,342.60 |
| Threeguarantees | 20,297,149.84 | 28,141,207.55 |
| Other | 7,520,633.81 | 9,558,048.08 |
| Total | 51,759,201.38 | 66,174,807.84 |
40.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 23,311,653.61 | 25,708,439.30 |
| Officeexpenses | 4,566,775.20 | 7,630,682.21 |
| Depreciationandamortization | 4,952,365.26 | 5,279,293.31 |
| Repaircharge | 428,378.02 | 928,742.39 |
| Other | 6,957,362.02 | 8,461,323.27 |
| Total | 40,216,534.11 | 48,008,480.48 |
41.DevelopmentCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 24,257,520.75 | 25,574,380.45 |
| Employeebenefits | 11,798,332.91 | 11,406,908.14 |
| Depreciationandamortization | 2,981,055.64 | 1,944,857.24 |
| Entrusteddevelopmentcharges | 4,716,981.13 | |
| Other | 1,122,878.17 | 1,493,727.00 |
| Total | 40,159,787.47 | 45,136,853.96 |
42.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 3,276,786.93 | 4,437,018.11 |
| Less:Interestincome | 6,634,812.22 | 4,502,088.58 |
| Netforeignexchangegainsorlosses | -7,111,099.45 | 1,608,275.04 |
| Other | -2,531,595.24 | 1,099,425.68 |
| Total | -13,000,719.98 | 2,642,630.25 |
43.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Governmentgrantsdirectlyrecordedintothecurrentprofitorloss | 1,602,830.77 | 406,454.70 |
44.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Investmentincomefromdisposaloftradingfinancialassets | 364,131.30 | 250,514.11 |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 9,360,000.00 | 8,191,724.76 |
| Incomefromrefinancingoperations | 60,799.49 | |
| Investmentincomefromfinancialproducts | 4,297,768.75 | |
| Forwardincomefromforeignexchangesettlement | 0.00 | 82,262.00 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -2,338,416.66 | |
| Total | 11,744,282.88 | 8,524,500.87 |
45.GainonChangesinFairValue
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Held-for-tradingfinancialassets | -30,488,388.88 | 122,554,092.00 |
| Total | -30,488,388.88 | 122,554,092.00 |
46.CreditImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofotherreceivables | 236,946.29 | 64,194.87 |
| Baddebtlossofaccountsreceivable | -12,169,772.95 | -12,559,627.15 |
| Total | -11,932,826.66 | -12,495,432.28 |
47.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Lossoninventoryvaluationandcontractperformancecost | 4,342,775.64 | -5,950,895.20 |
| Total | 4,342,775.64 | -5,950,895.20 |
48.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Disposalincomeoffixedassets | -361,395.36 | -751,441.20 |
49.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Incomefrompenalty | 246,187.33 | ||
| NegativegoodwillfromcombinationofZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 1,798,981.78 | 1,798,981.78 | |
| Other | 550,915.40 | 603,996.26 | 550,915.40 |
| Total | 2,349,897.18 | 850,183.59 | 2,349,897.18 |
50.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Retirementlossofnon-currentassets | 41,983.82 | ||
| Other | 392,257.24 | 291,323.90 | 392,257.24 |
| Total | 392,257.24 | 333,307.72 | 392,257.24 |
51.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 1,599,680.00 | 1,023,856.84 |
| Add:Deferredincometaxexpense | -7,805,728.88 | 27,263,523.00 |
| Total | -6,206,048.88 | 28,287,379.84 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | -20,803,050.57 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -6,206,048.88 |
| Taxpreferencefromeligibleexpenditures | -9,360,000.00 |
| Incometaxexpense | -6,206,048.88 |
52.OtherComprehensiveIncomeSeeNote33fordetails.
53.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 1,602,830.77 | 406,454.70 |
| Otherintercoursesincash | 6,000,698.61 | 2,956,131.54 |
| Interestincome | 7,872,212.72 | 4,502,088.58 |
| Other | 392,565.39 | 402,565.98 |
| Total | 15,868,307.49 | 8,267,240.80 |
(2)CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingandadministrativeexpensepaidincash | 75,307,038.72 | 79,257,764.77 |
| Handlingcharges | 1,058,635.32 | 1,776,237.12 |
| Other | 749,863.50 | 896,524.70 |
| Othertransactions | 67,256.65 | 95,689.96 |
| Total | 77,182,794.19 | 82,026,216.55 |
(3)CashGeneratedfromOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Depositofconstructionunit | 169,856.31 | 220,217.55 |
| Total | 169,856.31 | 220,217.55 |
(4)CashUsedinOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Projectmargin | 50,000.00 | |
| Total | 50,000.00 |
(5)CashGeneratedfromOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyforprojectloans | 1,391,000.00 | |
| Discountofunduebankacceptancebillswithlowcreditrating | 49,395,924.99 | |
| Total | 49,395,924.99 | 1,391,000.00 |
(6)CashUsedinOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Intermediaryagencyfeesforprivateplacement | 12,694,718.67 | |
| Discountinterestfrombankacceptancebills | 2,604,075.01 | |
| Total | 2,604,075.01 | 12,694,718.67 |
54.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflast |
| year | ||
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | -14,597,001.69 | 129,354,450.53 |
| Add:Provisionforimpairmentofassets | -8,871,223.50 | 18,446,327.48 |
| Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 40,934,595.60 | 39,927,432.35 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 3,076,523.63 | 3,142,009.67 |
| Amortizationoflong-termdeferredexpenses | 1,956.06 | 16,261.85 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | 361,395.36 | 751,441.20 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | 0.00 | 41,983.82 |
| Lossesonthechangesinfairvalue(gainsby“-”) | 30,488,388.88 | -122,554,092.00 |
| Financialexpenses(gainsby“-”) | -13,000,719.98 | 2,642,630.25 |
| Investmentlosses(gainsby“-”) | -11,744,282.88 | -824,500.87 |
| Decreaseindeferredincometaxassets(increaseby“-”) | -11,774.06 | |
| Increaseindeferredincometaxliabilities(decreaseby“-”) | -15,920,828.48 | 45,768,261.14 |
| Decreaseininventory(increaseby“-”) | 117,904,290.23 | 46,125,419.47 |
| Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -241,738,053.67 | -382,207,027.61 |
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 55,684,539.07 | 145,278,539.35 |
| Other | -16,868,305.69 | -18,463,256.69 |
| Netcashflowsgeneratedfromoperatingactivities | -74,300,501.12 | -92,554,120.06 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | ||
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | ||
| Endingbalanceofcash | 440,638,879.34 | 1,047,274,087.46 |
| Less:Beginningbalanceofcash | 573,623,529.10 | 629,939,540.50 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -132,984,649.76 | 417,334,546.96 |
(2)NetCashUsedinAcquisitionofSubsidiariesintheReportingPeriod
Unit:RMB
| Amount | |
| CashorcashequivalentspaidintheReportingPeriodforbusinesscombinationoccurringintheReportingPeriod | 33,520,800.00 |
| Netcashusedinacquisitionofsubsidiaries | 33,520,800.00 |
(3)CashandCashEquivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 440,638,879.34 | 573,623,529.10 |
| Including:Cashonhand | 201,776.86 | 145,594.98 |
| Bankdepositondemand | 439,927,242.99 | 561,746,767.12 |
| Othermonetaryassetsondemand | 509,859.49 | 509,859.49 |
| III.Endingbalanceofcashandcashequivalents | 440,638,879.34 | 573,623,529.10 |
55.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Endingcarryingvalue | Reasonforrestriction |
| Monetaryassets | 123,582,947.15 | Ascashdepositforbankacceptancebillandforenvironment |
| Housesandbuildings | 1,634,418.39 | Mortgagedforborrowingsfrombanks |
| Landuseright | 885,605.70 | Mortgagedforborrowingsfrombanks |
| Machineryequipment | 28,360,996.68 | Mortgagedforborrowingsfrombanks |
| Obligationtopaybillsdiscountedbeforematurity | 134,395,924.99 | |
| Obligationtopaybillstransferredbeforematurity | 98,388,074.25 | |
| Total | 387,247,967.16 |
56.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | |||
| Ofwhich:USD | 14,872,369.02 | 6.7114 | 99,814,417.44 |
| HKD | 301,761.84 | 0.8552 | 258,066.73 |
| SGD | 54,427.95 | 4.817 | 262,179.44 |
| Accountsreceivable | |||
| Ofwhich:USD | 9,170,863.92 | 6.7114 | 61,549,336.11 |
| GBP | -67,212.27 | 8.1365 | -546,872.63 |
| Accountspayable | |||
| Ofwhich:USD | 302.60 | 6.7114 | 2,030.87 |
| Contractliabilities | |||
| Ofwhich:USD | 784,613.15 | 6.7114 | 5,265,852.69 |
| EUR | 117,145.84 | 7.0084 | 821,004.91 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
57.GovernmentGrants
(1)BasicInformationonGovernmentGrants
Unit:RMB
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Businessdevelopmentfund | 102,800.00 | Otherincome | 102,800.00 |
| MunicipalsubsidyforapplicationofR&Dprojects | 200,000.00 | Otherincome | 200,000.00 |
| Subsidyforstabilizingposts | 521,460.00 | Otherincome | 521,460.00 |
| Exportawardfromagriculturalmachineryindustryassociation | 250,000.00 | Otherincome | 250,000.00 |
| Talentssubsidies | 50,000.00 | Otherincome | 50,000.00 |
| Scienceandtechnologyawards | 60,000.00 | Otherincome | 60,000.00 |
| Subsidyforstabilizingposts | 347,639.00 | Otherincome | 347,639.00 |
| Vehiclescrappingsubsidy | 59,800.00 | Otherincome | 59,800.00 |
| Subsidyforstabilizingposts | 11,131.77 | Otherincome | 11,131.77 |
(2)ReturnofGovernmentGrants
□Applicable√NotapplicableVIII.ChangesofConsolidationScope
1.BusinessCombinationNotundertheSameControl
(1)BusinessCombinationNotundertheSameControlintheReportingPeriod
Unit:RMB
| Nameofacquiree | Timeandplaceofgainingtheequity | Costofgainingtheequity | Proportionofequity | Waytogaintheequity | Purchasedate | Recognitionbasisofpurchasedate | Incomeofacquireefromthepurchasedatetoperiod-end | Netprofitsofacquireefromthepurchasedatetoperiod-end |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 23February2022 | 33,520,800.00 | 41.50% | Acquisitionincash | 31May2022 | On16May2022,theBoardofDirectorsofZhenjiangSiyangwasreorganizedanditsArticlesofAssociationwereamended,afterwhichdirectorsappointedbyChangchaiCompanyaccountformorethanhalfofthetotalnumber | 4,813,008.16 | 206,678.96 |
(2)CombinationCostandGoodwill
Unit:RMB
ofdirectors.InMay2022,ChangchaiappointedmanagerstoparticipateintheproductionandoperationmanagementofZhenjiangSiyang.
Combinationcost
| Combinationcost | |
| --Cash | 33,520,800.00 |
| --Fairvalueofnon-cashassets | |
| --Fairvalueofdebtsissuedorundertaken | |
| --Fairvalueofequitysecuritiesissued | |
| --Fairvalueofcontingentconsideration | |
| --Fairvalueofequitiesheldbeforethepurchasedateonthepurchasedate | |
| --Other | |
| Totalcombinationcost | 33,520,800.00 |
| Less:fairvalueofidentifiablenetassetsacquired | 35,319,781.78 |
| Theamountofgoodwill/combinedcostlessthanthefairvalueshareofidentifiablenetassetsobtained | -1,798,981.78 |
Notetodeterminationmethodofthefairvalueofthecombinationcost,considerationandchanges:
Combinationcost:AccordingtotheConfirmationofTransactionontheTransferof41.5%EquityInterest(CorrespondingtoCapitalContributionofRMB830,000)inZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.issuedbyJiangsuPropertyRightsExchangeCo.,Ltd.on12January2022,thetransactionpriceisRMB33,520,800.00,andChangchaiCompany,Limitedpaidaone-timepaymentofRMB33,520,800.00on23February2022.Determinationmethodoffairvalue:ZhenjiangSiyang'sbasedateofassetsevaluationis31March2021.TheevaluatedvalueofassetsofZhenjiangSiyangon31March2021isusedasthefairvalue.ThefairvalueofZhenjiangSiyangcontinuouslymeasuredfrom31May2022iscalculated,whichismultipliedbytheshareholdingratioofChangchaiCompany,LimitedtoobtainthefairvalueshareoftheidentifiablenetassetsobtainedbyChangchaiCompany,Limited.Themainreasonsfortheformationoflarge-valuegoodwill:Notapplicable
(3)TheIdentifiableAssetsandLiabilitiesofAcquireeonPurchaseDate
Unit:RMB
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | ||
| Fairvalueonpurchasedate | Carryingvalueonpurchasedate | |
| Assets: | 99,136,050.80 | 96,915,442.89 |
| Monetaryassets | 19,400,123.61 | 19,400,123.61 |
| Accountsreceivable | 24,790,090.34 | 24,790,090.34 |
| Inventories | 25,093,473.79 | 25,096,648.68 |
| Fixedassets | 21,864,448.97 | 21,427,812.03 |
| Intangibleassets | 6,746,790.39 | 4,959,644.53 |
| Liabilities: | 14,028,142.91 | 13,472,197.21 |
| Borrowings | ||
| Accountspayable | 13,472,197.21 | 13,472,197.21 |
| Deferredincometaxliabilities | 555,945.70 | |
| Netassets | 85,107,907.89 | 83,443,245.68 |
| Less:Non-controllinginterests | 49,788,126.12 | 48,814,298.72 |
| Netassetsacquired | 35,319,781.78 | 34,628,946.96 |
Thedeterminationmethodofthefairvalueofidentifiableassetsandliabilities:ContinuousmeasurementbasedonassessmentvalueContingentliabilitiesofacquireesundertakeninthebusinesscombination:None
(4)GainsorlossesfromRe-measurementofEquityHeldbeforethePurchaseDateatFairValueWhetherthereisatransactionthatthroughmultipletransactionstepbysteptorealizebusinesscombinationandgainingthecontrolduringtheReportingPeriod
□Yes√No
(5)NotestoReasonableConsiderationorFairValueofIdentifiableAssetsandLiabilitiesoftheAcquireethatCannotBeDeterminedontheAcquisitionDateorduringthePeriod-endoftheMergerNotapplicableIX.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
| Name | Mainoperatin | Registration | Natureof | Holdingpercentage(%) | Wayofgaining |
| gplace | place | business | 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 | 75.00% | 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 | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | Zhenjiang | Zhenjiang | Industry | 41.50% | Combinationnotunderthesamecontrol |
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | -122,639.26 | 19,843,847.11 | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 58.50% | 49,909,033.31 | 49,909,033.31 |
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. | 47,341,885.15 | 23,674,735.21 | 71,016,620.36 | 21,407,002.62 | 21,407,002.62 | 48,200,342.77 | 24,141,889.90 | 72,342,232.67 | 22,426,016.75 | 22,426,016.75 | ||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 70,175,371.13 | 27,046,382.11 | 97,221,753.24 | 13,342,095.84 | 13,342,095.84 | 65,195,270.42 | 27,826,516.89 | 93,021,787.31 | 11,548,769.99 | 11,548,769.99 |
Unit:RMB
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 17,154,269.32 | -306,598.18 | -306,598.18 | -3,005,981.47 | 30,436,079.88 | 487,938.46 | 487,938.46 | -1,981,901.87 |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 4,813,008.16 | 206,678.96 | 206,678.96 | 6,994,726.52 | 0.00 | 0.00 | 0.00 | 0.00 |
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.X.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.XI.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 104,304,516.61 | 299,677,397.27 | 403,981,913.88 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 104,304,516.61 | 299,677,397.27 | 403,981,913.88 | |
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 104,304,516.61 | 104,304,516.61 | ||
| (3)Derivativefinancialassets | ||||
| (4)Wealthmanagementinvestments | 299,677,397.27 | 299,677,397.27 | ||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
| (1)Debtinstrument | ||||
| investment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherinvestmentsindebtobligations | ||||
| (III)Otherequityinstrumentinvestment | 575,543,000.00 | 146,375,646.53 | 721,918,646.53 | |
| (IV)Investmentproperty | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuserightheldandplannedtobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Accountsreceivablefinancing | 109,896,100.86 | 109,896,100.86 | ||
| Othernon-currentfinancialassets | 112,500,000.00 | 112,500,000.00 | ||
| Totalassetsconsistentlymeasuredbyfairvalue | 679,847,516.61 | 299,677,397.27 | 368,771,747.39 | 1,348,296,661.27 |
| (VI)Tradingfinancialliabilities | ||||
| Ofwhich:Issuedtradingbonds | ||||
| Derivativefinancialliabilities | ||||
| Other |
| (VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
| Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
| II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
| (1)Assetsheldforsale | ||||
| Totalassetsinconsistentlymeasuredbyfairvalue | ||||
| Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Forthelistedcompanystocksheldbythecompanyintheheld-for-tradingfinancialassetsmeasuredatfairvalue,theclosingmarketpriceonthebalancesheetdatewasthebasisforthemeasurementoffairvalue.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Wealthmanagementandinvestment:Theunderlyingassetsofinvestmentinwealthmanagementproductsincludebondassets,depositassets,fundassets,etc.Theportfolioofinvestmentassetsshouldbedynamicallymanaged.Thefairvalueofwealthmanagementproductsshouldbeadjustedaccordingtotheyieldofsimilarproductsprovidedbythecounterparty.
4.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)Accountsreceivablefinancing:Accountsreceivablefinancingisabankacceptancewithhighcreditrating,
shortmaturityandlowrisk.Theparamountisclosetothefairvalueandisusedasthefairvalue.
(2)Amongtheothernon-currentfinancialassets:fortheinvestmentsinequityinstrumentofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,JiangsuHorizonNewEnergyTechnologyCo.,Ltd.entrustedanappraisalagencytoevaluatethevalueofallitsshareholders’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.Other
Duringtheyear,therewasnoconversionbetweenLevel1andLevel2,norwasthereanytransfertoorfromLevel3forthefairvaluemeasurementoftheCompany'sfinancialassetsandfinancialliabilities.XII.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:InformationontheCompanyastheparentTheparentcompanyoftheCompanyisChangzhouInvestmentGroupCo.,Ltd.AccordingtotheguidingprincipleoftheNoticeofProvincialGovernmentonIssuingtheImplementationPlanforTransferringPartofState-ownedCapitaltoBoostSocialSecurityFundinJiangsuProvince(SZF[2020]No.27),theNoticeonTransferringPartofState-ownedCapitaltoCitiesandCountiestoBoostSocialSecurityFund(SCGM[2020]No.
139)fromtheDepartmentofFinanceofJiangsuProvinceandotherfivedepartmentsandtheNoticeonTransferringPartofState-ownedCapitalatUrban(District)LeveltoBoostSocialSecurityFund(CCGM[2020]No.4)fromChangzhouFinanceBureauandotherfourdepartments,the10%state-ownedequityoftheInvestmentGroupheldbyChangzhouMunicipalPeople'sGovernmentistransferredtotheDepartmentofFinanceofJiangsuProvincefreeofcharge.Afterthesharetransfer,ChangzhouPeople’sGovernmentholds90%state-ownedequityoftheInvestmentGroupandtheDepartmentofFinanceofJiangsuProvinceholds10%state-ownedequityoftheInvestmentGroup.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),ChangzhouInvestmentGroupCo.,Ltd.isanenterprisewhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstill
theactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteVIIIfordetails.
3.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
| DonghaiSecuritiesCo.,Ltd. | ControlledbythesameCompanyastheparent |
XIII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof30June2022,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDateNone
(2)InDespiteofnoSignificantContingencytoDisclose,theCompanyShallAlsoMakeRelevantStatementsTherewasnosignificantcontingencyintheCompany.XIV.EventsafterBalanceSheetDate
1.SalesReturnNone
2.NotestoOtherEventsafterBalanceSheetDateTherewasnoothereventafterbalancesheetdate.
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 | |||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 23,729,235.73 | 2.38% | 20,406,627.14 | 86.00% | 3,322,608.59 | 27,509,745.33 | 6.00% | 21,126,658.85 | 76.80% | 6,383,086.48 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 973,736,101.52 | 97.62% | 100,074,198.30 | 10.28% | 873,661,903.22 | 430,771,912.03 | 94.00% | 88,019,743.09 | 20.43% | 342,752,168.94 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 973,736,101.52 | 97.62% | 100,074,198.30 | 10.28% | 873,661,903.22 | 430,771,912.03 | 94.00% | 88,019,743.09 | 20.43% | 342,752,168.94 |
| Total | 997,465,337.25 | 100.00% | 120,480,825.44 | 12.08% | 876,984,511.81 | 458,281,657.36 | 100.00% | 109,146,401.94 | 23.82% | 349,135,255.42 |
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 |
| Total | 21,638,158.41 | 18,315,549.82 | ||
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup
Unit:RMB
| Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 854,773,136.44 | 17,094,662.72 | 2.00% |
| 1to2years | 20,989,671.22 | 1,049,483.56 | 5.00% |
| 2to3years | 2,019,401.20 | 302,910.18 | 15.00% |
| 3to4years | 1,068,018.76 | 320,405.63 | 30.00% |
| 4to5years | 2,113,093.71 | 1,267,856.23 | 60.00% |
| Over5years | 79,778,188.13 | 79,778,188.13 | 100.00% |
| Total | 960,701,509.46 | 99,813,506.45 |
Notestothebasisforthedeterminationofthegroups:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsoccurredactually,amongwhichtheaccountsoccurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 872,090,950.76 |
| 1to2years | 20,989,671.22 |
| 2to3years | 4,107,290.29 |
| Over3years | 100,277,424.98 |
| 3to4years | 3,017,768.32 |
| 4to5years | 4,636,883.46 |
| Over5years | 92,622,773.20 |
| Total | 997,465,337.25 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 21,126,658.85 | 720,031.71 | 20,406,627.14 | |||
| Baddebtprovisionwithdrawnbygroup | 88,019,743.09 | 12,054,455.21 | 100,074,198.30 | |||
| Total | 109,146,401.94 | 12,054,455.21 | 720,031.71 | 120,480,825.44 | ||
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)TherewerenoaccountsreceivablewithactualverificationduringtheReportingPeriod.
(4)Top5oftheEndingBalanceofAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 567,626,334.55 | 56.91% | 11,352,526.69 |
| Customer2 | 57,715,364.53 | 5.79% | 1,154,307.29 |
| Customer3 | 18,252,915.05 | 1.83% | 365,058.30 |
| Customer4 | 18,121,707.37 | 1.82% | 362,434.15 |
| Customer5 | 16,876,870.97 | 1.69% | 337,537.42 |
| Total | 678,593,192.47 | 68.04% |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 112,148,961.53 | 26,497,081.34 |
| Total | 112,148,961.53 | 26,497,081.34 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| CashdepositandMargin | 4,200.00 | 4,200.00 |
| Intercoursefundsamongunits | 147,411,452.59 | 55,450,919.93 |
| Pettycashandborrowingsbyemployees | 742,653.65 | 613,410.65 |
| Other | 14,165,323.36 | 13,629,784.64 |
| Total | 162,323,629.60 | 69,698,315.22 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2022 | 209,613.53 | 23,809,010.58 | 19,182,609.77 | 43,201,233.88 |
| Balanceof1January2022intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | 6,962,340.36 | 132,636.76 | 7,094,977.12 | |
| ReversaloftheCurrentPeriod | 11,141.18 | 11,141.18 | ||
| Balanceof30June2022 | 7,160,812.71 | 23,941,647.34 | 19,182,609.77 | 50,285,069.82 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 130,104,060.37 |
| 1to2years | 2,133,744.72 |
| 2to3years | 58,410.29 |
| Over3years | 30,027,414.22 |
| 3to4years | 254,561.05 |
| 4to5years | 902,693.83 |
| Over5years | 28,870,159.34 |
| Total | 162,323,629.60 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 19,182,609.77 | 5,231,176.29 | 24,413,786.06 | ||
| Baddebtprovisionwithdrawnbygroup | 24,018,624.11 | 1,863,800.83 | 11,141.18 | 25,871,283.76 | |
| Total | 43,201,233.88 | 7,094,977.12 | 11,141.18 | 50,285,069.82 |
4)ParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod:None.
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| JiangsuChangchaiMachineryCo.,Ltd. | Intercoursefunds | 87,416,859.70 | Within1year | 53.85% | 1,748,337.19 |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 18,699,595.15 | Within1yearwithRMB16,899,595.15,1-2yearswithRMB1,800,000.00 | 11.59% | 18,699,595.15 |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Intercoursefunds | 9,000,000.00 | Within1year | 5.54% | 180,000.00 |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 1.81% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 1.76% | 2,853,188.02 |
| Total | 120,909,642.87 | 74.55% | 26,421,120.36 |
6)DerecognitionofOtherReceivablesduetotheTransferofFinancialAssets:none
7)TheAmountoftheAssetsandLiabilitiesFormedduetotheTransferandtheContinuedInvolvementofOtherReceivables:none
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 576,273,530.03 | 7,000,000.00 | 569,273,530.03 | 542,752,730.03 | 7,000,000.00 | 535,752,730.03 |
| Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
| Total | 576,317,712.53 | 7,044,182.50 | 569,273,530.03 | 542,796,912.53 | 7,044,182.50 | 535,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofdepreciationreserve | Other | ||||
| 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. | 7,000,000.00 | ||||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | 300,000,000.00 | |||
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | |||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 33,520,800.00 | 33,520,800.00 | |||
| Total | 535,752,730.03 | 33,520,800.00 | 569,273,530.03 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequity | Adjustmentofothercomprehensiveincom | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
| method | e | ||||||
| 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 | 1,063,899,643.27 | 960,873,534.45 | 1,391,941,677.73 | 1,195,911,988.65 |
| Otheroperations | 14,401,885.93 | 10,099,571.18 | 18,507,068.46 | 12,852,045.04 |
| Total | 1,078,301,529.20 | 970,973,105.63 | 1,410,448,746.19 | 1,208,764,033.69 |
Informationonrevenue:
Unit:RMB
| Categoryofcontracts | Segment1 |
| ProductTypes | |
| Ofwhich: | |
| Single-cylinderdieselengines | 440,462,569.28 |
| Multi-cylinderdieselengines | 612,150,701.94 |
| Otherproducts | 10,248,725.00 |
| Fittings | 15,439,532.98 |
| Classifiedbybusinessarea | |
| Ofwhich: | |
| Salesindomesticmarket | 974,096,235.13 |
| Exportsales | 104,205,294.07 |
| Total | 1,078,301,529.20 |
Informationrelatedtoperformanceobligations:none
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 4,099,001.28 | |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 9,360,000.00 | 7,394,400.00 |
| Incomefromrefinancingoperations | 60,799.49 | 797,324.76 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -2,338,416.66 | |
| Total | 11,181,384.11 | 8,191,724.76 |
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets | -361,395.36 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 1,602,830.77 | |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andavailable-for-salefinancialassets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | -19,744,106.00 | DecreaseinthefairvalueofthestocksofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,KailongHighTechnologyCo.,Ltd.andGuilinStarsScienceandTechnologyCo.,Ltd.heldbytheCompany’swholly-ownedsubsidiaryHorizonInvestmentduringtheReportingPeriod |
| Othernon-operatingincomeandexpensesotherthanthe | 1,957,639.94 |
| above | ||
| Less:Incometaxeffects | -7,756,677.28 | |
| Non-controllinginterestseffects | -2,443.83 | |
| Total | -8,785,909.54 | -- |
Othersthatmeetsthedefinitionofnon-recurringgain/loss:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ExplainthereasonsiftheCompanyclassifiesanyextraordinarygain/lossitemmentionedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasarecurrentgain/lossitem
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | -0.48% | -0.0207 | -0.0207 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -0.19% | -0.0082 | -0.0082 |
TheBoardofDirectorsChangchaiCompany,Limited
24August2022