CHANGCHAICOMPANY,LIMITED
INTERIMREPORT2023
August2023
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.XieGuozhong,theCompany’slegalrepresentativeandGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredaspromisestoinvestors.Investorsandotherstakeholdersshallbesufficientlyawareoftheriskandshalldifferentiatebetweenplans/forecastsandpromises.TheCompanyhasdescribedindetailtherisksitmightfacein“XRisksFacingtheCompanyandCountermeasures”in“PartIIIManagementDiscussionandAnalysis”herein.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 9
PartIVCorporateGovernance ...... 36
PartVEnvironmentalandSocialResponsibility ...... 38
PartVISignificantEvents ...... 41
PartVIIShareChangesandShareholderInformation ...... 47
PartVIIIPreferenceShares ...... 53
PartIXBonds ...... 54
PartXFinancialStatements ...... 55
DocumentsAvailableforReference(I)ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment(accountantincharge).(II)TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonthewebsitedesignatedbytheCSRCduringtheReportingPeriod.(III)TheInterimReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompany.ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Definitions
| Term | Definition |
| “Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HorizonInvestment | ChangzhouHorizonInvestmentCo.,Ltd. |
| HorizonAgriculturalEquipment | ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
| ZhenjiangSiyang | ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2023to30June2023 |
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 | XieGuozhong | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | HeJianjiang | |
| Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
| Tel. | （86）519-68683155 | |
| Fax | （86）519-86630954 | |
| Emailaddress | cchjj@changchai.com |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2022AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√Notapplicable
Thewebsiteandmedianameandwebsiteofthestockexchangewherethecompanydiscloseditssemi-annualreport.Thelocationofthecompany'ssemi-annualreportremainsunchangedduringthereportingperiod,asdetailedinthe2022annualreport.
3.OtherRelevantInformationIndicatebytickmarkwhetheranychangeoccurredtootherrelevantinformationintheReportingPeriod.
□Applicable√Notapplicable
IVKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.?Yes√No
| H12023 | H12022 | Change(%) | |
| Operatingrevenue(RMB) | 1,350,517,639.85 | 1,178,222,492.04 | 14.62% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 131,937,324.66 | -14,595,269.61 | —— |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 5,825,543.98 | -5,809,360.07 | —— |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -104,796,816.75 | -74,300,501.12 | —— |
| Basicearningspershare(RMB/share) | 0.1870 | -0.0207 | —— |
| Dilutedearningspershare(RMB/share) | 0.1870 | -0.0207 | —— |
| Weightedaveragereturnonequity(%) | 3.93% | -0.48% | 4.41% |
| 30June2023 | 31December2022 | Change(%) | |
| Totalassets(RMB) | 5,559,083,368.07 | 5,219,359,853.42 | 6.51% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 3,485,429,025.82 | 3,284,710,665.90 | 6.11% |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√Notapplicable
NodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
VIExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 105,395,693.25 | Expropriationoftheconstructionsonthestate-ownedlandoftheChangzhouWuxingbranchcompanyintheReportingPeriod |
| Governmentgrantsthroughprofitorloss(exclusiveofgovernmentgrantsconsistentlygivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernmentalpoliciesorstandards) | 3,299,056.52 | |
| Gainorlossonfair-valuechangesonheld-for-tradingfinancialassetsandliabilities&incomefromdisposalofheld-for-tradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 22,587,377.56 | Increaseinthefairvalueofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,KailongHighTechnologyCo.,Ltd.,GuilinStarsScienceandTechnologyCo.,Ltd.,andHenanLantianGasCo.,Ltd. |
| Non-operatingincomeandexpenseotherthantheabove | -801,809.16 | |
| Less:Incometaxeffects | 4,621,569.20 | |
| Non-controllinginterestseffects(netoftax) | -253,031.71 | |
| Total | 126,111,780.68 |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysisIPrincipalActivityoftheCompanyintheReportingPeriod
1.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Ourproductsaremainlyusedinagriculturalmachinery,smallengineeringmachinery,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.TheCompanyintheIndustryWeareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasharvesters,tractors,plantprotectionmachinery,smallengineeringmachinery,andshipbornemachinery.
(1)DevelopmentpatternandtrendoftheindustryIntermsofpolicies,atthebeginningof2023,the20thNo.1Documentguidingtheworkonagriculture,rural
areas,andfarmersissuedbythecentralgovernmentdemonstratedthegovernment’sintentiontoattachgreaterimportancetoagricultureandstrengthenagriculturaldevelopment.Inabidtodoso,thegovernmentwillstepupeffortstoenhanceagriculturalscienceandtechnologyandprovidemoreequipment,drivetotacklekeyproblemsofkeyandcoretechnologiesinagriculture,andmakeagriculturalmachinerymoreintelligentandautomated.Intermsofindustryconcerns,theupgradeandconversiontoproductsthatmeettheNationalEmissionStandardIVraisechallengestoenterprises.Attheendof2022,thecentralgovernmentappropriatedRMB211.5billionofagriculture-relatedtransferpaymentfundsfor2023inadvance,includingRMB14.5billionforsubsidiesofagriculturalmachineryprocurementandapplication.Thecentralgovernmentallocatedsubstantivefundsforsubsidiesandimplementedpoliciestostrengthenagricultureandbenefitfarmers,indicatingthatthestatewillcontinuetoattachgreatimportancetoagriculturalmechanization.Intermsofindustrialdevelopment,afteraten-yeargoldenperiodofdevelopment,since2016,theentireagriculturalmachineryindustryhasenteredaperiodofdeepadjustmentthathaslastedforyears.Althoughshort-termexplosivegrowthwasseenin2020,itwentdownagain,enteringaphaseofupdatingexistingmachineryfromthegrowthofnewmachineprocurement.TheswitchtotheNationalEmissionStandardIVforNon-roadVehicleshasposedchallengesforenterprises,inadditiontomultiplepressuresfromtheshrinkingofthedemandside,prematuremarketoverdraft,participationoftycoonsfromotherindustries,andtheimpactofnewenergymarketonthetraditionalmarket.Currently,multiplesegmentedscenariosstillrequireall-weatherandcontinuousinputandoutput,whichisanadvantageofdieselenginesthatcannotbesubstitutedinashorttime.Furthermore,newdevelopmentopportunitieshavebeenbroughtaboutintheprocessofnationalstrategicdeploymentandaccelerationoftransformationandupgrade.Therefore,thetraditionalmarketofagriculturalmachinerystillhasabrilliantfuture.China'sdieselengineandgasolineengineindustriespresentapatternofmultiplecompetitions.Asthestateadoptsincreasinglystrictenvironmentalprotectionpolicyandtheemissionstandardscontinuetoupgrade,thecoretechnologyandkeypartsofinternalcombustionengineswillberapidlydevelopedandapplied,andtheresearch,development,promotingandapplicationofenvironmentallyfriendlyandefficientdieselenginesandgasolineengineswillbecomethemainstreamtrend,whichpromotesthewideuseofthefuelinjectionsystem,high-efficiencysuperchargerandhigh-efficiencyafter-treatment.Inthenewnormal,theinternalcombustionengineindustryandagriculturalmachineryindustrywillimprovetheindustry'scapabilityofindependentinnovation,supportthewholemachinedevelopment,andorganizeandimplementgreenmanufacturingand
intelligentmanufacturing,soastoimprovetheoverallstrengthoftheindustry.Themarketshareofdieselandgasolineenginesisgraduallyconcentratedinafewlarge-scaleenterpriseswithtechnicalandcapitalstrength.Thepresentdevelopmenttrendofinternalcombustionengineindustryisasfollows:(1)energysavingandemissionreduction;(2)intelligentmanufacturing;(3)lightweight.Medium-andlow-endinternalcombustionengineswithlowtechnicalcontentandlowaddedvaluewillbegraduallysqueezedoutofthemarket.Theupgradeofemissionstandardsandthemarket'sdemandforhigh-endproductswilleliminatethosesmallenterpriseswithlowlevelofresearchanddevelopmentorlesstechnologyreserves.
(2)Industrysalesinthefirsthalfof2023Amidamarketrecoveryfacilitatedbymultiplenationalpolicies,theupstreamanddownstreammarketsintheinternalcombustionengineindustryweresomewhatimproved.Despiteslightlyinsufficientmarketdemands,thesalesweregraduallygrowing.Ontheterminalside,theagriculturalmachineryandprojectmarketswerestillsevereinsales.FromJanuarytoJune2023,thetotalsalesofinternalcombustionengineswere21,592,400units,adeclineof
0.20%yearonyear;theaccumulativepowerwas1,359,215,700kW,anincreaseof6.08%yearonyear.FromJanuarytoJune,2,678,700dieselenginesweresold,anincreaseof8.85%yearonyear.Specifically,476,900enginesforconstructionmachineryweresold,anincreaseof5.88%fromthesameperiodlastyear;862,100enginesforagriculturalmachineryweresold,anincreaseof32.04%fromlastyear;33,500enginesforshipbornemachineryweresold,anincreaseof62.62%fromlastyear;190,700enginesforgeneratorsetsweresold,anincreaseof22.79%fromlastyear.Inthefirsthalf,18,902,100gasolineinternalcombustionenginesweresold,down1.39%yearonyear.Intermsofthesegmentsoftheinternalcombustionenginemarketbypurpose,fromJanuarytoJune,thesalesofenginesforagriculturalmachinerywitnessedayear-on-yeardecline.Tobemorespecific,507,800enginesforconstructionmachineryweresold,up5.16%yearonyear;2,073,600enginesforagriculturalmachineryweresold,down14.13%yearonyear;33,500enginesforshipbornemachineryweresold,up62.62%yearonyear;767,300enginesforgeneratorsetsweresold,up19.85%yearonyear.
(3)TheCompany'spositioninthemarketWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsof
ChinaInternalCombustionEngineIndustryAssociation(CICEIA),asthelargestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
5.KeyPerformanceDrivers
(1)NationalpolicydriverInrecentyears,variousdepartmentsofthestatehaveintroducedaseriesofpreferentialpoliciestoencouragethedevelopmentofinternalcombustionengineindustry.Intermsofagriculturalmachinery,thecentralgovernmenthastakensolvingtheproblemsrelatingto"agriculture,ruralareasandfarmers"asthetoppriorityoftheworkofthePartyandthegovernment,andissuedaseriesofpoliciestobenefitfarmers,creatingagoodatmosphereforpromotingthedevelopmentofagricultureandeconomyandsocietyinruralareas;intermsofconstructionmachinery,thestrategyof"westerndevelopment",the"eightverticalandeighthorizontal"high-speedrailwaynetworkplanandthepolicyof"newruralconstruction"haveallcreatedagoodpolicyenvironmentfortheapplicationofinternalcombustionengineindownstreamconstructionmachinery.
(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborativeproduction,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargainingpower.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines.
(3)StableandefficientR&DteamWehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionand
manufacturingforalongtime.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.PerformanceoftheCompany’sPrincipalOperationsintheReportingPeriodInthefirsthalfof2023,themacroeconomywasstillrecoveringstably.AffectedbyfactorssuchastheswitchtotheNationalEmissionStandardIV,marketoverextension,andconservativepurchaseintentionsofusers,theagriculturalmachineryindustrywasconfrontedwithaseverechallengeandthusenteredadownturnforin-depthadjustments.ThistestedtheCompany’sbusiness.Inthiscontext,theCompanyadheredtoitsannualpolicyandgoalsandseizedmarketopportunities.Additionally,itenhancedinternalmanagementandcomprehensivelypushedaheadwithalltasks.Asaresult,itsurmounteddifficultiesandachievedexcellentoperatingresults.DuringtheReportingPeriod,theCompanysold365.3thousanddieselengines,gasolineenginesandgeneratorsets,including78.2thousandgasolineengines,generatingtotalsalesrevenueofRMB1.351billion,anincreaseof
14.62%year-on-year.Intermsofproductdevelopmentandapplication,theCompanyenhancedthebatchapplicationandmarkettestingandtrackingofproductsthatmettheNationalEmissionStandardIVforNon-RoadEnginesandoptimizedtheproductperformanceonanongoingbasisincombinationwiththeusers’feedbackanddemands.Atthesametime,theCompanyadvancedthedevelopmentofproductsdesignedforitsexpansionintonewfields,diversifiedproductsindifferentpowerranges,andcarriedoutorderlyexperimentsforproductapplicationinthemarket.TheseeffortsearnedtwooftheCompany’sproducts,namely3M78andL24,atitleofHigh-techProductsofChangzhou.Additionally,twonewproducts,4G29and4G36V16,passedtheacceptanceinspectionforthe
appraisalofJiangsuProvincefornewproductsandtechnologies.Intermsofmarketservices,theCompanyfurtheroptimizedthesalesnetworkandproductmixofsingle-cylinderenginesinthecirculationmarketandconsolidateditsmarketapplicationshareintheindustrialcluster.Moreover,allproductsintherequiredpowerrangesofthemainengineplantcustomerswereadjustedtofullymeettheNationalEmissionStandardIV,thushelpingtheCompanyconsolidatethemarketshareofitsadvantageousproductsandexpandtheapplicationofnewmodels.Meanwhile,effortswereredoubledtoimprovetheservicesthatmettheNationalEmissionStandardIVandoptimizetheserviceresources.TrainingontheproductsincompliancewiththeNationalEmissionStandardIVwasconductedonanongoingbasis,andpoliciesonservicesduringthebusyseasonwereadjusted.Doingsofurtherconsolidatedtheserviceresources.Furthermore,thankstotheincreasinglystableforeigntradeenvironment,foreigntradewitnessedasignificantincrementinthetraditionalmarket.Intermsofqualitymanagement,theCompanystrictlycontrolledthequalityofproductsincompliancewiththeNationalEmissionStandardIVinordertocontinuouslyimprovetheirqualitystabilityandreliability.Tothisend,theCompanycarriedouttargetedqualityimprovementandenhancedthecontrolofthewholeprocess,hopingtoproduceincreasinglystableandsatisfactoryproducts.Intermsofinternalmanagement,safetyriskcontrolandhazardinspectionandremediationwereorganizedtopreventandmitigatemiscellaneoussafetyrisks,facilitatethecompletionofthesafeproductionactivityplan,and,moreimportantly,boosttheCompany’scapabilityofsafeproduction.Additionally,arangeofpublicityactivitiesinproductionandoperation,corporateculture,andbrandimagepublicitywasorganizedtocelebratethe110thanniversaryoftheCompanyandenhancethedevelopmentofcorporateculture.Thisdeliveredexcellentresults.DuringtheReportingPeriod,theChangzhouWuxingbranchcompany,togetherwithotherhouseswithinthescopeofexpropriationofthepassengertrainfactoryarea(phasesIandII)project,wasexpropriatedbythegovernment.Hence,theCompanysignedtheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensationwithChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureau,andreceivedthefirstcompensationpaymentofRMB70millionon28June2023.
IICoreCompetitivenessAnalysis
1.AdvantagesinBrand
Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.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,theCompanywasawardedhonorarytitlessuchasTop500MachineryIndustryInChina,andNationalDemonstrationEnterpriseofProductandServiceQualityIntegrity.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,theCompanypassedtheperformancere-appraisalbyJiangsuProvincialEngineeringCentre;andtwomulti-cylinderdieselengines,4G36V16and4G29,passedthenewproductappraisal.Intheperiod,theCompanyfiledatotalofsixpatentapplications,allofwhichhavebeenacceptedbytheChinaNationalIntellectualPropertyAdministration,andweregranted13patents.Sofar,theCompanyhas163patents,including15inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with24salesservicecentersand693designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-Road
Vehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.
IIICoreBusinessAnalysis
OverviewSeecontentsundertheheading“IPrincipalActivityoftheCompanyintheReportingPeriod”.Year-on-yearchangesinkeyfinancialdata:
Unit:RMB
| H12023 | H12022 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 1,350,517,639.85 | 1,178,222,492.04 | 14.62% | |
| Costofsales | 1,168,898,203.83 | 1,051,395,232.42 | 11.18% | |
| Sellingexpense | 62,131,032.17 | 51,759,201.38 | 20.04% | |
| Administrativeexpense | 52,877,371.06 | 40,216,534.11 | 31.48% | DuringtheReportingPeriod,thewholly-ownedsubsidiary,JiangsuChangchaiMachineryCo.,Ltd.,hasenteredtheproductionandoperationstage,whileitwasstillintheconstructionstageinthesameperiodoflastyear. |
| Financecosts | -4,976,652.95 | -13,000,719.98 | —— | DecreasedexchangegainsandinterestincomeintheReportingPeriod |
| Incometaxexpense | 7,189,328.33 | -6,206,048.88 | —— | DuringtheReportingPeriod,increaseinthestockpricesofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,KailongHightechCo.,Ltd.,GuilinXingchenTechnologyCo.,Ltd.,andHenanLantianGasCo.,Ltd.heldbywholly-ownedsubsidiaryHousheng |
| Investment,correspondingtotheincreaseindeferredincometaxexpensesprovisioned. | ||||
| R&Dinvestments | 35,839,071.42 | 40,159,787.47 | -10.76% | |
| Netcashgeneratedfrom/usedinoperatingactivities | -104,796,816.75 | -74,300,501.12 | —— | DuringtheReportingPeriod,mostoftheCompany’smulti-cylinderdieselenginecustomersweresupportingcompaniesofmainengine,whichareusuallygivenlongerpaymentdaysandtheCompanyproperlyallowedcustomers’buyingoncreditformoremarketstostepupeffortstoexpandthemarketduetotheproductemissionupgrading,resultinginrelativelylowercashinflow. |
| Netcashgeneratedfrom/usedininvestingactivities | -45,360,077.56 | -86,580,833.90 | —— | TheCompanyacquireda41.5%interestinZhenjiangSiyanginthesameperiodoflastyear,withnocomparableinvestmentinthecurrentperiod. |
| Netcashgeneratedfrom/usedinfinancingactivities | -8,886,489.92 | 27,896,685.26 | —— | Somebankacceptancenoteswithlowcreditratingswerediscountedinthesameperiodoflastyear,withnocomparableinvestmentinthecurrentperiod. |
| Netincreaseincashandcashequivalents | -159,043,384.23 | -132,984,649.76 | —— |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableBreakdownofoperatingrevenue:
| H12023 | H12022 | Change(%) |
Unit:RMBOperatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 1,333,099,509.22 | 1,156,456,220.22 | 13.25% | 14.82% | 11.33% | 2.72% |
| Byproductcategory | ||||||
| Dieselengines | 1,246,906,709.16 | 1,085,807,867.36 | 12.92% | 15.49% | 12.35% | 2.44% |
| Gasolineengines | 82,791,314.55 | 67,045,804.51 | 19.02% | 12.11% | 6.10% | 4.58% |
| Byoperatingsegment | ||||||
| Domestic | 1,114,906,055.18 | 939,907,304.69 | 15.70% | 9.39% | 4.81% | 3.69% |
Operatingrevenue
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 1,350,517,639.85 | 100% | 1,178,222,492.04 | 100% | 14.62% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 1,333,099,509.22 | 98.71% | 1,161,021,786.32 | 98.54% | 14.82% |
| Other | 17,418,130.63 | 1.29% | 17,200,705.72 | 1.46% | 1.26% |
| Byproductcategory | |||||
| Dieselengines | 1,246,906,709.16 | 92.33% | 1,079,645,157.01 | 91.63% | 15.49% |
| Gasolineengines | 82,791,314.55 | 6.13% | 73,850,875.09 | 6.27% | 12.11% |
| Other | 20,819,616.14 | 1.54% | 24,726,459.94 | 2.10% | -15.80% |
| Byoperatingsegment | |||||
| Domestic | 1,114,906,055.18 | 82.55% | 1,019,205,712.35 | 86.50% | 9.39% |
| Overseas | 235,611,584.67 | 17.45% | 159,016,779.69 | 13.50% | 48.17% |
| Overseas | 235,611,584.67 | 228,990,899.14 | 2.81% | 48.17% | 48.14% | 0.02% |
CorebusinessdataofthepriorperiodrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
IVAnalysisofNon-CoreBusinesses
√Applicable□Notapplicable
Unit:RMB
| Amount | As%ofgrossprofit | Mainreason/source | Recurrentornot | |
| Returnoninvestment | 3,226,921.70 | 2.25% | Stockdividendsandincomefromcashmanagement | Yes |
| Gains/lossesonchangesinfairvalue | 19,360,455.86 | 13.51% | Increasedpricesofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,KailongHighTechnologyCo.,Ltd.,GuilinStarsScienceandTechnologyCo.,Ltd.,andHenanLantianGasCo.,Ltd.duringtheReportingPeriod | No |
| Assetimpairmentloss | -565,273.49 | -0.39% | Inventoryvaluationloss | No |
| Non-operatingincome | 495,538.97 | 0.35% | Trademarkinfringementdamageincome | No |
| Non-operatingexpense | 1,297,348.13 | 0.91% | Mainlycausedbycompensationmatters | No |
| Assetdisposalincome | 105,395,693.25 | 73.55% | Expropriationoftheconstructionsonthestate-ownedlandoftheChangzhouWuxingbranchcompanyintheReportingPeriod | No |
VAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2023 | 31December2022 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 851,514,113.92 | 15.32% | 930,013,350.97 | 17.82% | -2.50% | |
| Accounts | 934,790,431.84 | 16.82% | 370,322,179.77 | 7.10% | 9.72% | Mostofthe |
| receivable | Company’smulti-cylinderdieselenginecustomersaresupportingcompaniesofmainengine,whichareusuallygivenlongerpaymentdaysandtheCompanyproperlyallowedcustomers’buyingoncreditformoremarketstostepupeffortstoexpandthemarketduetotheproductemissionupgrading | |||||
| Inventories | 557,524,141.36 | 10.03% | 571,996,881.74 | 10.96% | -0.93% | |
| Investmentproperty | 40,942,541.87 | 0.74% | 42,160,779.65 | 0.81% | -0.07% | |
| Fixedassets | 683,448,533.29 | 12.29% | 720,061,387.76 | 13.80% | -1.51% | |
| Constructioninprogress | 30,905,577.10 | 0.56% | 30,281,547.56 | 0.58% | -0.02% | |
| Short-termborrowings | 110,447,699.49 | 1.99% | 115,437,700.65 | 2.21% | -0.22% | |
| Contractliabilities | 33,094,812.97 | 0.60% | 32,843,692.83 | 0.63% | -0.03% |
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) | 370,103,602.57 | 19,360,455.86 | 605,127,734.16 | 633,120,983.27 | 361,470,809.32 | |||
| Investmentsinotherequityinstruments | 955,560,240.08 | 844,650,390.08 | 1,042,219,240.08 | |||||
| Subtotaloffinancialassets | 1,325,663,842.65 | 19,360,455.86 | 844,650,390.08 | 605,127,734.16 | 633,120,983.27 | 1,403,690,049.40 | ||
| Others | 412,809,587.93 | 705,680.77 | 413,515,268.70 | |||||
| Totaloftheabove | 1,738,473,430.58 | 20,066,136.63 | 844,650,390.08 | 605,127,734.16 | 633,120,983.27 | 1,817,205,318.10 | ||
| Financialliabilities | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
4.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingamount | Reasonforrestriction |
| Monetaryassets | 173,206,532.10 | Securitydepositsassociatedwithbankacceptancenotes,environment,etc. |
| Buildings | 1,422,559.69 | Collateralforbankloan |
| Landuseright | 863,218.81 | Collateralforbankloan |
| Plantandequipment | 25,771,609.33 | Collateralforbankloan |
| Paymentobligationsinrelationtodiscountednotesthatwereundue | 110,000,000.00 | |
| Paymentobligationsinrelationtotransferrednotesthatwereundue | 103,721,703.95 | |
| Total | 414,985,623.88 |
VIInvestmentsMade
1.TotalInvestmentAmount
□Applicable√Notapplicable
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingamount | Gain/lossonfairvaluechangesintheReportingPeriod | Accumulatedfairvaluechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingamount | Accountingtitle | Fundingsource |
| Domestic/foreign | 600166 | FotonMotor | 41,784,000.00 | Fairvaluemethod | 406,045,000.00 | 0.00 | 449,516,000.00 | 0.00 | 0.00 | 0.00 | 491,300,000.00 | Investmentinother | Self-funded |
| stock | equityinstruments | ||||||||||||
| Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 170,586,000.00 | 0.00 | 129,204,000.00 | 0.00 | 0.00 | 0.00 | 171,990,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 13,592,411.00 | 9,417,096.00 | 0.00 | 0.00 | 0.00 | 9,417,096.00 | 23,009,507.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 60,062,400.00 | 8,884,800.00 | 0.00 | 0.00 | 0.00 | 8,884,800.00 | 68,947,200.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 247,000.00 | 20,960.00 | 0.00 | 0.00 | 0.00 | 20,960.00 | 267,960.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 832885 | StarsScienceandTechnology | 3,600,000.00 | Fairvaluemethod | 4,837,500.00 | 594,000.00 | 0.00 | 0.00 | 0.00 | 594,000.00 | 5,431,500.00 | Held-for-tradingfinancialassets | Self-funded |
| Total | 115,532,012.76 | -- | 655,370,311.00 | 18,916,856.00 | 578,720,000.00 | 0.00 | 0.00 | 18,916,856.00 | 760,946,167.00 | -- | -- | ||
(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 | 21,178.19 | 54,355.72 | 0 | 0 | 0.00% | 8,985.98 | Depositedinthespecialaccountforraisedfundsandputintocashmanagement | 8,985.98 |
| Total | -- | 63,500 | 21,178.19 | 54,355.72 | 0 | 0 | 0.00% | 8,985.98 | -- | 8,985.98 |
| Explanationoftheoveralluseofraisedfunds | ||||||||||
| On17December2020,theCompanyreceivedtheReplyConcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.OnJune11,2021,thesubscribersofthisnon-publicofferinghavefullyremittedthesubscriptionfundstothebankaccountdesignatedbythesponsorinstitution,andthetotalamountoffundsraisedwasRMB634,999,996.40.Afterdeductingvariousissuancefees,theactualnetamountraisedthistimeis620,665,733.97yuan,includinganadditionalregisteredcapitalof144,318,181.00yuanandanadditionalcapitalreserveof476,347,552.97yuan. | ||||||||||
(2)CommittedProjectsofRaisedFunds
√Applicable□Notapplicable
Unit:RMB’0,000
OnJune16,2021,NotaryTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)conductedacapitalverificationoftheabove-mentionedraisedfundsandissuedthe"CapitalVerificationReportontheNonPublicDevelopmentofStocksofChangchaiCo.,Ltd."(SuGongW[2021]B062).Afterdeductingtherecommendationandunderwritingfees,theunderwriteroftherecommendationactuallyreceived622,499,996.40yuanofraisedfunds,whichweredepositedinthreespecialaccountsforraisedfundsopenedbythecompanyandChangchaiMachinery,andsignedatripartitesupervisionagreementforraisedfundswiththerecommendationinstitutionandtheaccountopeningbank.ThereisnosignificantdifferencebetweenthetripartiteregulatoryagreementandthemodeltripartiteregulatoryagreementoftheShenzhenStockExchange,andourcompanystrictlyfollowsandfulfillsitwhenusingtheraisedfunds.Asof30June2023,RMB543.5572millionofraisedfundshasbeenusedcumulatively,withtheunusedraisedfundsbeingRMB89.8598million.
Committedinvestmentprojectsandinvestmentofexcessiveraisedfunds
| 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 | 20,919.43 | 53,337.75 | 97.39% | May2022 | -1,937.34 | No | No |
| Innovationcapacitybuildingprojectofthetechnicalcenter | No | 8,733.29 | 7,299.86 | 258.76 | 1,017.97 | 13.95% | December2023 | 0 | Notapplicable | No |
| Subtotalofcommittedinvestmentprojects | -- | 63,500.00 | 62,066.57 | 21,178.19 | 54,355.72 | -- | -- | -1,937.34 | -- | -- |
| Investmentofexcessiveraisedfunds | ||||||||||
| Notapplicable | ||||||||||
| Total | -- | 63,50 | 62,06 | 21,17 | 54,35 | -- | -- | -1,937 | -- | -- |
| 0.00 | 6.57 | 8.19 | 5.72 | .34 | ||||
| Casesandreasonsforfailingtoreachtheplannedprogressorpredictedreturn(byspecificprojects) | Lightengineandcastingrelocationproject:1)Reasonsforpaymentnotmeetingtheplannedschedule:AsofJune30,2023,theinvestmentprogressoftheproject'sraisedfundswas97.39%,andtheremainingfundsnotinvestedweremainlythefinalpaymentforsomeequipmentthathadnotbeenfinallyaccepted.2)Thereasonforthefailuretoachievebenefitsduringthisreportingperiodisthattheprojectconsistsofmultipleproductionlinessuchascastingandsinglecylindermachineassembly.Currently,castinghasbeenofficiallyputintooperationandthemaincustomeristheparentcompany.However,duetothemarketsituation,internalandexternalordershavedecreasedtoacertainextent,leadingtoaslowdowninproductioncapacityrelease;Moreover,allsinglecylindermachineassemblyemployeeshavenotyetrelocatedtotheprojectaddressandarestillintheprocessofgradualrelocation,sotheexpectedbenefitshavenotbeenachievedinthisperiod.TechnicalCenterInnovationCapacityBuildingProject:Reasonsfornotachievingtheplannedprogress:Thecompanyadheredtotheprincipleofsavingfundsandimprovingassetutilizationatthebeginningoftheindependentproject,borrowedsomeoriginalequipment,andusedtechnologicalinnovationmethodstocompletesomeoftheresearchanddevelopmentprocess,savingsomecapitalexpenses;Thereisstillsomeunpaidbalanceinthesignedcontract.Theprojectisexpectedtobecompletedbeforethescheduledavailabilitydate. | |||||||
| Explanationsofthematerialchangesintheprojectfeasibility | Notapplicable | |||||||
| Amount,use,anduseprogressofexcessiveraisedfunds | Notapplicable | |||||||
| Implementationoflocationchangesintheinvestmentprojectswiththeraisedfunds | Applicable | |||||||
| Occurredintheprioryear | ||||||||
| TheProposalonAddingImplementationLocationtothePrivatePlacementRaisedFundsInvestmentProjectofInnovationCapacityBuildingoftheTechnicalCentrewasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.TheCompanydecidedtoaddthesitesofcertainbranchesoftheCompanyastheparentandwholly-ownedsubsidiaryChangchaiMachineryaslocationstoplacetheR&DequipmentandimplementtheR&Dproject.Thischangewillnotre-purposetheraisedfundsandwillhelpcarryforwardthetechnicalinnovationproject. | ||||||||
| Implementationofmethodadjustmentstotheinvestment | Notapplicable | |||||||
| projectswiththeraisedfunds | |
| Earlyinvestmentandplacementconcerningtheinvestmentprojectswiththeraisedfunds | Applicable |
| Priortotheavailabilityoftheraisedfunds,inordertoensurethesmoothimplementationoftheinvestmentprojectswithraisedfunds,theCompanyuseditsownfundstoinvestinpartoftheinvestmentprojectswithraisedfundsandpaidpartoftheissuanceexpenses.Asof17June2021,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)wasissuedon25June2021.On28June2021,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)on30June2021. | |
| Temporaryreplenishmentofworkingcapitalwiththeidleraisedfunds | Notapplicable |
| Surplusraisedfundsforprojectimplementationandreasonsforthesurplus | Notapplicable |
| Useandownershipchangeofunusedraisedfunds | Somearedepositedinthespecialaccountforraisedfundsandsometemporarilyidleraisedfundsareusedtopurchasewealthmanagementproducts |
| Problemsintheuseofraised | On13July2021,theFourthInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonChangingtheImplementationEntityof |
| fundsanddisclosure,orothercases | SomeInvestmentProjectswithRaisedFunds,agreeingtochangetheimplementationentityoftheCompany'sinvestmentprojectswithfundsraisedthroughnon-publicofferingofshares,the"relocationprojectoflightenginesandcasting",fromChangchaiMachinery,awholly-ownedsubsidiaryoftheCompany,totheparentcompanyofChangchaiCo.,Ltd.Thematterdidnotchangetheuseandimplementationofthefundsraisedandwasnotasignificantchangeintheinvestmentprojectswithraisedfunds.TheProposalonAddingImplementationEntitytothePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEnginesandCastingwasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.Assuch,theCompanyintendedtoaddChangchaiMachineryasanotheroperatingentitywiththeCompanyastheparenttojointlyoperatetherelocationprojectforbetteroperationalflexibilityandstrongermarketcompetitiveness. |
(3)AlteredProjectsofRaisedFunds
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIISaleofMajorAssetsandEquityInvestments
1.SaleofMajorAssets
√Applicable□Notapplicable
| Transactionparty | Assetsold | Dateofsale | Transactionprice(RMB’0,000) | NetprofitcontributedtotheCompanyfromtheperiod-begintothedateofsale(RMB’0,000) | EffectontheCompany | RatioofthenetprofitcontributedbythesaleoftheassettotheCompany’stotalprofit(%) | Pricingprinciple | Related-partytransactionornot | RelationshipbetweenthetransactionpartyandtheCompany(applicableforrelated-partytransa | Ownershipoftheassetinvolvedhasbeenall | Creditor’srightsandliabilitiesinvol | Executedasscheduledornot;ifnot,givereasonsandmeasurestaken | Disclosuredate | Indextodisclosedinformation |
| ctions) | transferredornot | vedhavebeenalltransferredornot | |||||||||||
| ChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureau | TheCompany'spropertiesanditsannexeslocatedinXinxinVillageCommittee,WuxingTownship | 14June2023 | 11,700 | 0 | TheWuxingbranchcompanyisoneoftheCompany'slightengineproductionbases,whichhasceasedproductionasofthedateofsale,andpartoftheequipmentandproductionlineshavebeenrelocatedtoJiangsuChangchaiMachineryCo.,Ltd.whichistheimplementationbodyofthelightengineandcastingrelocationprojectofthenon-publicofferingproject.TheexpropriationwillnothaveasignificantimpactontheCompany'sproductionandoperation.TheCompanywillaccountfortheexpropriationin | 77.44% | Thedemolitionandrelocationcompensationamountwasdeterminedbytakingtheevaluationresultasreference,combiningwiththelocaldemolitionandrelocationcompensation | No | N/A | N/A | N/A | Yes,implementedasplanned | Seenote1 |
| accordancewiththeAccountingStandardsforBusinessEnterprisesandotherrelevantregulations. | policy,andmutualconsultationonaddingrelevantrelocationcompensation,incentives,etc. |
Note1:Seethefollowingannouncementsdisclosedonhttp://www.cninfo.com.cn:
1)ReminderontheIntentionofthePeople'sGovernmentofZhonglouDistrict,ChangzhouCitytoExpropriatePropertiesoftheWuxingBranchCompany(AnnouncementNo.2023-016)disclosedon19April2023;
2)AnnouncementontheResolutionsofthe17
thMeetingoftheNinthBoardofDirectors(AnnouncementNo.2023-021),andAnnouncementontheIntentiontoSigntheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensation(AnnouncementNo.2023-022),bothdisclosedon26May2023;
3)AnnouncementontheResolutionsoftheFirstExtraordinaryGeneralMeetingofShareholdersin2023(AnnouncementNo.2023-035)disclosedon13June2023;and
4)AnnouncementonProgressontheExpropriationofPropertiesonState-ownedLandoftheWuxingBranchCompanyandtheCompensation(AnnouncementNo.2023-042)disclosedon29June2023.
2.SaleofMajorEquityInvestments
□Applicable√NotapplicableVIIIPrincipalSubsidiariesandJointStockCompanies
√Applicable□NotapplicablePrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| Changchai | Subsidi | Production | 55,063,0 | 153,669, | 78,777,8 | 122,681, | -1,256,37 | -1,272,54 |
| Benniu | ary | ofdieselengineaccessories | 00.00 | 633.65 | 41.60 | 208.07 | 7.50 | 0.30 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 71,003,981.46 | 49,477,076.95 | 26,190,043.15 | 976,591.52 | 212,968.83 |
| HorizonInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 113,700,314.85 | 95,581,384.34 | 0.00 | 19,383,284.61 | 14,650,282.95 |
| HorizonAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 6,824,928.69 | -15,647,624.60 | 3,010,166.17 | -593,158.00 | -593,158.00 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 117,886,692.47 | 97,562,037.80 | 82,791,314.55 | 9,401,412.58 | 8,180,809.75 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 300,000,000.00 | 592,685,799.88 | 258,078,854.01 | 43,818,522.52 | -19,380,229.04 | -19,373,366.46 |
| XingshengRealEstateManagement | Subsidiary | Realestatemanagementservice | 1,000,000.00 | 3,374,315.88 | 522,108.72 | 1,207,467.09 | -132,801.40 | -37,109.32 |
| ZhenjiangSiyang | Subsidiary | Manufacturingandmarketingofdieselenginesforships | 2,000,000.00 | 115,324,977.87 | 97,155,113.08 | 38,098,312.48 | 8,214,000.25 | 6,969,592.70 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
□Applicable√Notapplicable
IXStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
XRisksFacingtheCompanyandCountermeasures
(1)MarketriskDuetofactorssuchassubsidypolicychange,tightsupplychain,upgradingoftheNationalEmissionStandardIVforNon-roadVehicles,andintensifiedexistingcompetition,theagriculturalmachineryindustryhasstillbeeninaperiodofdeepadjustment.Thedieselenginemarketfaceslimitedtotaldemand,thedeliverycapacityandenvironmentofproductsneedtobeimproved,andtheloweruserrevenuecompromisestheincreaseinthedemandside.Countermeasures:First,theCompanysolidifiesthetraditionalsupportingfields,furtherexpandstheCompany’sadvantagesinthefieldofagriculturalmachinery,andcontinuestopromotethemassproductionofthefullrangeofmodelsthatmeettheNationalEmissionStandardIVforNon-roadVehiclestoensurethecontinuoussupplylevelofsupplychainsandmeetmarketdemands.Second,theCompanyexpandsapplicationsinshipbornegeneratorsets,high-speedricetransplanters,coldchainvehicles,excavatorsandothersmallconstructionmachinery,conductsin-depthresearchanddevelopmentinnewareasanddevelopmentandsupportingofkeyproducts.TheCompanyfurtheroptimisestheperformanceofoutboardengines,whichhavebeenputintoproductionandintroducedtothemarketinthefirsthalfoftheyear.Theseenginesareforyachts,lifeboats,fishingboats,salvageboats,etc.,whicharewellreceived.Third,theCompanycreatesthe“internalcombustionengine+”mode,activelypromotestheapplicationofadvancedtechnologiessuchastheInternet,bigdata,artificialintelligenceandnewmaterialstoproductdevelopment,furtherimprovesthedieselengines’functionsofintelligentcontrol,real-timemonitoringandbigdatacollectionandanalysis,acceleratestheR&Dofintelligentterminalsandhybridpower,promotestheproductstodeveloptowardsthehighend,andbuildsnewcompetitiveedges.
(2)IndustrialriskInrecentyears,thestateadvocatesenergyconservationandemissionreduction.Newenergypowerrepresentedbypureelectric,hybridpowerandhydrogenfuelpowerhasgrabbedthemarketshareofdieselenginetoacertainextent.Atpresent,newenergypowerismainlyusedinvehicles.Itsuseinagriculturalmachineryisstillfacingproblemssuchashighcostandcomplexoperatingenvironment.However,asbreakthroughshavebeenmadeinnewenergybatterytechnology,thelocalapplicationscenarioofdieselenginemaybereplacedbynewenergypower.
Countermeasures:First,theCompanystrengthensexplorationinthenewenergysector,andactivelypromotesprojectconstructionanddevelopment.Second,theCompanymakespropereffortsinproductR&D,developsefficientandeco-friendlyproducts,andexpandsnewdevelopmentdirectionsandapplicationareas.Atpresent,theCompanyispushingforwardinanorderlymannertheresearchanddevelopmentofthehybrid-electricengineproject,installing,debuggingandfurtheroptimisingtheprojectequipmentandprototype.Finally,theCompanyactivelylooksforhigh-qualityinvestmenttargetsintheupstreamanddownstreamoftheindustry,effectivelyintegratesresourcesandenhancesthequalityofdevelopment.AftertheacquisitionofZhenjiangSiyangbytheCompany,thetwosideshavebeensteadilyintegratingandsharingresourcesinvariousareassuchasproductionorganisation,procurementsystemandemissionupgradedeclaration,whichisbeneficialtotheCompany'sexpansionofitsproductchain,improvementofitsbusinessstructure,andpromotionofitslong-termdevelopment.
(3)ForeigntraderiskInthecontextofthecomplexandchangeableglobaleconomicenvironmentandtheturmoilinthebreadbasketofEuropecausedbytheRussia-Ukraineconflict,thepricesofimportedagriculturalproducts,fertilizer,feed,oil,andgasincrease,whichdirectlycompromisetheplantingcostsandpurchasingpoweroffarmers.Theunstablefactorshavebroughtaboutcertainimpactsonproductexport.Countermeasures:First,theCompanywillpaycloseattentiontotherelevantdynamics,activelydealwiththeforeigntrademarketchanges,aswellasstrengthenthemaintenanceandmanagementofoverseaskeymarketsandcustomers,soastoincreasethemarketshare.Second,itwillintensifyeffortsinthedevelopmentofemergingmarketsandnewusers,enhancemarketresearch,lookfornewmarketingpoints,andendeavortoimprovethesalesofhigh-value-addedproducts.Third,itpaysattentiontotheriskcontrolofcustomerpayments,improvesinternalprocesscontrol,andfocusesontimelypreventiontosolveanypossibleproblems.
(4)ForeignexchangeriskSomeoftheCompany’sexportsaresettledinUSD.Inthefuture,duetothesignificantexchangeratefluctuationofRMBagainstUSD,theCompanymayfacetheriskofadverseimpactonproductsalesduetoexchangeratefluctuation.
Countermeasures:First,theCompanywillenhanceriskcontroltoensureitscapitalsecurity,constantlypayattentiontothedepreciationofcurrenciesandshortageofUSDinthemarket,andlowerriskbychangingpaymentmethodschangeandinsuringexportcreditinsurance.Second,theCompanywillpromptlyadjustproductpricesandpaymenttermstocopewithfluctuationsinexchangeratesandmaterialprices.
(5)TalentriskTheCompanyneedshigh-leveltalents,highlyskilledtalentsandlackstalentstohelptheCompanyimproveitsoperationalefficiencyandstrengthentechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend.Therefore,thedemandforprofessionaltalentsandseniormanagementtalentshasincreasedsignificantly.Countermeasures:First,theCompanyhassteppedupeffortstocultivateandappointyoungleadersandrecruitedmoreprofessionaltalents.Second,theCompanyhasrecruitedadvancedtalentsthroughmultipleapproaches,andconstantlyenhancedthedevelopmentofskillexperts,technicalandmanagementpersonnel,andworkersandtechnicianssoastoraisethecontributionrateofhumanresourcesinallrespects.Third,theCompanypromotestheappraisalandincentivereformprogramme,improvestheappraisalandincentivemechanismforexecutives,effectivelymobilisestheirenthusiasm,andenhancestheefficiencyandqualityatwork.
PartIVCorporateGovernance
IAnnualandExtraordinaryGeneralMeetingConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Dateofdisclosure | Indextodisclosedinformation |
| The2022AnnualGeneralMeeting | Annualgeneralmeeting | 32.52% | 18May2023 | 19May2023 | Allproposalswereapproved.SeeAnnouncementNo.2023-020onResolutionsofthe2022AnnualGeneralMeeting. |
| TheFirstExtraordinaryGeneralMeetingin2023 | Extraordinarygeneralmeeting | 32.33% | 12June2023 | 13June2023 | Allproposalswereapproved.SeeAnnouncementNo.2023-035onResolutionsoftheFirstExtraordinaryGeneralMeetingin2023. |
2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferenceShareholderswithResumedVotingRights
□Applicable√Notapplicable
IIChangeofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
| Name | Titleofoffice | Typeofchange | Date | Reason |
| LiDesen | ChairmanoftheBoard | Elected | 12June2023 | Re-election |
| ZhangXin | ViceChairmanoftheBoard | Elected | 12June2023 | Re-election |
| XieGuozhong | Director | Elected | 12June2023 | Re-election |
| TanJie | Director | Elected | 12June2023 | Re-election |
| JiaBin | IndependentDirector | Elected | 12June2023 | Re-election |
| NiMingliang | ChairmanoftheSupervisory | Elected | 12June2023 | Re-election |
| Committee | ||||
| ShiXingyu | Supervisor | Elected | 12June2023 | Re-election |
| LinWei | Supervisor | Elected | 12June2023 | Re-election |
| XieGuozhong | GeneralManager | Appointed | 12June2023 | AppointedbytheBoardofDirectors |
| WangJing | DeputyGeneralManager | Appointed | 12June2023 | AppointedbytheBoardofDirectors |
| WangWeifeng | ChiefEngineer | Appointed | 12June2023 | AppointedbytheBoardofDirectors |
| ShiXinkun | ChairmanoftheBoard | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| LinTian | Director | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| XuYi | DirectorandDeputyGeneralManager | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| XingMin | IndependentDirector | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| ZhangXin | GeneralManager | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| YinLihou | DeputyGeneralManager | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| XieGuozhong | DeputyGeneralManager | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| HeJianguang | ChairmanoftheSupervisoryCommittee | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| ChenLijia | Supervisor | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
| GeJiangli | Supervisor | Leftofficeupontheexpiryofthetermofoffice | 12June2023 | Leftofficeupontheexpiryofthetermofoffice |
IIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVEnvironmentalandSocialResponsibilityIMajorEnvironmentalIssuesIndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoAdministrativepunishmentsreceivedintheReportingPeriodduetoenvironmentalissues:N/AOtherenvironmentalinformationwithreferencetoakeypolluter:
Thecompanyanditssubsidiariesarenotlistedaskeypollutantdischargeunitsbytheenvironmentalprotectiondepartment.ThecompanyanditssubsidiariesconscientiouslyimplementenvironmentalprotectionlawsandregulationssuchastheEnvironmentalProtectionLawofthePeople'sRepublicofChina,theWaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,theAirPollutionPreventionandControlLawofthePeople'sRepublicofChina,theEnvironmentalNoisePollutionPreventionandControlLawofthePeople'sRepublicofChina,andtheSolidWastePollutionPreventionandControlLawofthePeople'sRepublicofChinaintheirdailyproductionandoperation,andpayenvironmentalprotectiontaxesinaccordancewiththelaw,TherewerenopenaltiesforenvironmentalviolationsduringtheReportingPeriod.ActionstakenduringtheReportingPeriodtoreducecarbonemissionsandtheimpact:
√Applicable□NotapplicableThecompanyadherestoahealthy,green,andharmoniousdevelopmentmodel,continuouslypromotingrecyclableproductsandenvironmentallyfriendlymaterialstoachievethegoalofreducingpollutionandcarbonemissions.Duringthereportingperiod,thecomprehensiveenergyconsumptionofthecompany'soutputvaluewas0.014tonsofstandardcoal,comparedto0.02tonsofstandardcoalinthesameperiodlastyear,ayear-on-yeardecreaseof30%.Reasonsfornotdisclosingotherenvironment-relatedinformation:
N/A
IISocialResponsibilityIntheReportingPeriod,theCompanyadheredtothecorevaluesof"CustomerFirst,EmployeeOriented,EnhancingShareholderReturns,andCreatingValueforSociety",andtook"ProvidingGreenPowerforaBetterLife"asitsmission,andoperatedsteadilyarounditsoperationalpolicy.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,theCompanyconductedanonlineresultspresentationofAnnualReport2022,earnestlyorganizedthemanagementofinvestors,communicatedwithshareholderseffectively,accuratelyandcompletely,andtreatedallshareholdersfairly.TheCompanycompliedwiththedividendcommitmentandcompletedthepaymentofthe2022finaldividendofRMB7.0569millionduringtheReportingPeriod.TheCompany'sinformationdisclosureislegalandcompliant,andthecontentdisclosedistrue,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.TheCompanyhasmadeconsideratearrangementsforemployees,includingfestiveperks,healthcheck-ups,medicalrecuperation,benefitsprovidedthroughthelaborunionservicecards,assistancetoemployeesinneed,andotherphilanthropicinitiatives.TheCompanyactivelyimprovedtheworkingenvironmentofemployees,andproperlymonitoredemployees'healthtoeffectivelyguaranteetheoccupationalsafetyandhealthofemployees.TheCompanyhasstrictlyobservedtheLaborLawandtheLaborContractLaw,protectedthelegitimaterightsandinterestsofemployeesaccordingtolaw,properlyaddressedreasonableneedsofemployees,andbuiltharmoniousandstablerelationsbetweenemployeesandemployer.Protectionoftherightsandinterestsofcustomersandconsumers:TheCompanyhasestablishedgoodlong-termpartnershipswithitscustomers,iscommittedtoprovidingcustomerswithquality,efficientandtimelyservices,andhasbeenrecognizedandhonoredasahigh-qualitysupplierbymanycustomers.Additionally,theCompanyhasbeenawardedthehonorabletitlesofExcellentSupplierofWorldAgricultureMachineryandExcellentSupplierofDongfengAgriculturalMachineryforseveralconsecutiveyears.DuringtheReportingPeriod,theCompanywontheprestigioustitleoftheNationalModelEnterpriseforTrustworthyProductandServiceQuality.Additionally,itconductedmultipletrainingsessionsonproductscompliantwiththeNationalEmissionStandardIVinthemarketandcontinuouslyenhancedtheskillsofitsmarketservicepersonnelandintegratedsocialserviceresourcestodeliverservicesinlinewiththeNationalEmissionStandardIV.Protectionofsuppliers’rightsandinterests:TheCompanyenhancedsuppliermanagementwhileobservingtheContractontheApplicationandProcurementofPartsandtheQualityAssuranceAgreementforSuppliers,optimizedthecapacityandsupplyallocationforparts,intensifiedinventoryandplanmanagement,andpaidsuppliersforthegoodspromptlypursuanttothecontracts.Accordingtotheassessmentresultsandactualsupplysituation,theCompanyconstantlyhasadjustedandoptimizeditssupplysystem,andsupportedthetechnologygrowthandprogressofsuppliers,inanefforttocreateavirtuouscycleofsupplyrelations.
Intermsofsafeproduction,tobuildasafeChangchai,theCompanyfullyimplementedpoliciesandemergencyresponsemechanismsforsecurityprotectionandfiresafety.Additionally,itlaunchedthe“LifeaboveAll,EliminateAllHazards”specialactiononfiresafetyandpushedaheadwithremediationmeasuresbythetimelineofthespecialaction.Intheprocess,fourfiredrillswereorganized.Intermsofculturaldevelopment,onits110thanniversary,theCompanyfullyshowcaseditsnewimageininnovation,productR&D,equipmentenhancement,qualityimprovement,andcorporateculturedevelopment.Additionally,itlaunchedmultiplethemedactivities,suchasthe“Celebratethe110thAnniversary,DisplayOurPresence”orienteeringhikingforemployees,todisplaytheCompany’spresenceonallfrontsfrommultipleperspectives,enhancetheCompany’scohesionandmotivationforgrowth,andboosttheemployees’senseofbelongingandobtainment.Moreover,duringtheperiod,theCompanycooperatedwiththeEconomy30MinutesprogramofChinaCentralTelevision(“CCTV”)toshootaspecialreportonstrengtheningtheweakspotsindomesticagriculturalmachinery.ItalsoenhancedthepublicityofChangchai’sbrandimageandnewflagshipproducts.DoingsocontinuouslyboostedChangchai’s“CentennialChangchai,TimelessClassic”positiveimage.TheCompanyactivelypromotedtheR&Dofhigh-qualityproducts,acceleratedproductupdate,andpromotedtheapplicationofproductstoservetheconstructionofagriculture,ruralareasandfarmers.TheCompanycontinuedtoimplementenergyconservationandemissionreductionmeasurestoimproveenergyefficiency,reduceconsumptionandprotecttheenvironment.TheCompanytooksolidstepsforcharitytogivebacktosociety.TheCompanyalwaysremembersitssocialresponsibilities,andhasmadecontributionstosocialdevelopmentwithpracticalactions.
PartVISignificantEvents
ICommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| CommitmentsmadeinIPOorrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutsharetradingrestriction | ItwillnottransferthesharesithasobtainedintheprivateplacementofChangchaiwithin36monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5July2024 | Ongoing |
| ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.ItundertakesnottointerfereintheCompany'soperationandmanagementactivitiesbeyonditsauthorityandnottoencroachontheCompany'sinterests;2.Itundertakesnottotransferbenefitstootherentitiesorindividualsfreeofchargeoronunfairterms,nortoimpairtheinterestsoftheCompanybyanyothermeans;3.AftertheissuanceofthisLetterofCommitmentandbeforethecompletionoftheCompany'snon-publicofferingofshares,iftheChinaSecuritiesRegulatoryCommission(CSRC)makes | 11April2020 | 11April2020-31December9999 | Ongoing |
| othernewregulatoryprovisionsonthereturnfillingmeasuresandcommitments,andtheaforesaidcommitmentscannotmeetsuchprovisionsoftheCSRC,itundertakestoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC;4.ItundertakestoeffectivelyimplementtheCompany'smeasurestofillthereturnandanycommitmentsmadethereon.IftheCompanybreachessuchcommitmentsandcauseslossestotheCompanyortheinvestors,theCompanyiswillingtocompensatetheCompanyortheinvestorsaccordingtolaw. | ||||||
| Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | Aboutdividends | RewardsPlanforShareholdersinNextThreeYears(2023-2025)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | 18May2023 | Year2023-2025 | Ongoing |
| Fulfilledontimeornot | Yes | |||||
| Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A | |||||
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsareunaudited.VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√Notapplicable
VIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable√Notapplicable
VIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIILegalMattersSignificantlawsuitsandarbitrations:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
□Applicable√Notapplicable
IXPunishmentsandRectifications
□Applicable√Notapplicable
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,receiveloansorcreditfromandwasnot
involvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedforWealthManagement
√Applicable□Notapplicable
Unit:RMB’0,000
| Type | Fundingsource | Amount | Undueamount | Unrecoveredoverdueamount | Impairmentallowanceforunrecoveredoverdueamount |
| Bankfinancialproducts | Raisedfunds | 10,000.00 | 5,000.00 | 0.00 | 0.00 |
| Brokerfinancialproducts | Self-funded | 1,565.39 | 1,266.09 | 0.00 | 0.00 |
| Bankfinancialproducts | Self-funded | 33,500.00 | 20,070.00 | 0.00 | 0.00 |
| Total | 45,065.39 | 26,336.09 | 0.00 | 0.00 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidity:
□Applicable√NotapplicableSituationwheretheprincipalisexpectedlyirrecoverableoranimpairmentmaybeincurred:
□Applicable√Notapplicable
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIIOtherSignificantEvents
√Applicable□Notapplicable
1.ExpropriationoftheWuxingbranchcompany’spropertiesonstate-ownedlandandcompensationOn25May2023,theProposalontheIntentiontoSigntheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensationwasapprovedatthe17thMeetingoftheNinthBoardofDirectors.Later,thesaidmatterwasapprovedattheFirstExtraordinaryGeneralMeetingofShareholdersin2023dated12June2023.Assuch,theCompanywasagreedtosignacontractwithChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureauontheexpropriationoftheWuxingbranchcompany’spropertiesonstate-ownedlandandthecompensation,withthecontractualtotalcompensationamountbeingRMB117million.On14June2023,theCompanysignedtheAgreementontheExpropriationofthePropertiesoftheWuxingBranchCompanyonState-ownedLandinChangzhouCityandtheCompensationwithChangzhouZhonglouDistrictHousingandUrban-RuralDevelopmentBureau,andreceivedthefirstcompensationpaymentofRMB70millionon28June2023.
XIVSignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIIShareChangesandShareholderInformationIShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
| 1.Restrictedshares | 56,818,181 | 8.05% | 0 | 56,818,181 | 8.05% | ||||
| 1.1Sharesheldbygovernment | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| 1.2Sharesheldbystate-ownedlegalpersons | 56,818,181.00 | 8.05% | 0 | 56,818,181.00 | 8.05% | ||||
| 1.3Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| Amongwhich:Shares | 0 | 0.00% | 0 | 0 | 0.00% | ||||
| heldbydomesticlegalpersons | ||||||
| Sharesheldbydomesticnaturalpersons | 0 | 0.00% | 0 | 0 | 0.00% | |
| 1.4Sharesheldbyforeigninvestors | 0 | 0.00% | 0 | 0 | 0.00% | |
| Amongwhich:Sharesheldbyforeignlegalpersons | 0 | 0.00% | 0 | 0 | 0.00% | |
| Sharesheldbyforeignnaturalpersons | 0 | 0.00% | 0 | 0 | 0.00% | |
| 2.Unrestrictedshares | 648,874,326 | 91.95% | 0 | 648,874,326 | 91.95% | |
| 2.1RMB-denominatedordinaryshares | 498,874,326 | 70.69% | 0 | 498,874,326 | 70.69% | |
| 2.2Domestically | 150,000,000 | 21.26% | 0 | 150,000,000 | 21.26% |
| listedforeignshares | ||||||
| 2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0 | 0.00% | |
| 2.4Other | 0 | 0.00% | 0 | 0 | 0.00% | |
| 3.Totalshares | 705,692,507 | 100.00% | 0 | 705,692,507 | 100.00% |
Reasonsforthesharechanges:
□Applicable√NotapplicableApprovalofthesharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableII.IssuanceandListingofSecurities
□Applicable√NotapplicableIIIShareholdersandTheirHoldings
Unit:share
| Numberofordinary | 51,091 | Numberofpreferenceshareholders | 0 |
| shareholders | withresumedvotingrights(ifany) | |||||||||
| 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 | 0.65% | 4,580,300 | 4,580,300 | ||||||
| KGIASIALIMITED | Foreignlegalperson | 0.44% | 3,101,695 | 3,101,695 | ||||||
| HuataiSecuritiesCo.,Ltd. | State-ownedlegalperson | 0.38% | 2,667,721 | 2,667,721 | ||||||
| ChinaMinshengBank-GoldstateYuanqiDynamicAssetAllocationMixedTypeSecuritiesInvestmentFund | Other | 0.27% | 1,880,000 | 1,880,000 | ||||||
| LiSuinan | Domesticnaturalperson | 0.23% | 1,591,300 | 1,591,300 | ||||||
| HuangGuoliang | Domesticnaturalperson | 0.22% | 1,528,891 | 1,528,891 | ||||||
| XueHong | Domesticnaturalperson | 0.21% | 1,516,900 | 1,516,900 | ||||||
| XuQingguo | Domesticnaturalperson | 0.21% | 1,500,300 | 1,500,300 | ||||||
| BankofChinaCo.,Ltd.-GFundQuantifiedMultifactorEquitySecuritiesInvestmentFund | Other | 0.21% | 1,456,200 | 1,456,200 | ||||||
| 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 | 4,580,300 | RMB-denominatedordinaryshare | 4,580,300 |
| KGIASIALIMITED | 3,101,695 | Domesticallylistedforeignshare | 3,101,695 |
| HuataiSecuritiesCo.,Ltd. | 2,667,721 | RMB-denominatedordinaryshare | 2,667,721 |
| ChinaMinshengBank-GoldstateYuanqiDynamicAssetAllocationMixedTypeSecuritiesInvestmentFund | 1,880,000 | RMB-denominatedordinaryshare | 1,880,000 |
| LiSuinan | 1,591,300 | Domesticallylistedforeignshare | 1,591,300 |
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 |
| XueHong | 1,516,900 | Domesticallylistedforeignshare | 1,516,900 |
| XuQingguo | 1,500,300 | RMB-denominatedordinaryshare | 1,500,300 |
| BankofChinaCo.,Ltd.-GFundQuantifiedMultifactorEquitySecuritiesInvestmentFund | 1,456,200 | RMB-denominatedordinaryshare | 1,456,200 |
| Relatedoracting-in-concertpartiesamongthetop10unrestrictedordinaryshareholders,aswellasbetweenthetop10unrestrictedordinary | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| shareholdersandthetop10ordinaryshareholders | |
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholderChenJianheld2,917,800sharesintheCompanythroughhismarginaccount. |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableNochangesoccurredtotheshareholdingsofthedirectors,supervisorsandseniormanagementintheReportingPeriod.Seethe2022AnnualReportformoredetails.VChangeoftheControllingShareholderortheDeFactoController
ChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
□Applicable√Notapplicable
PartXFinancialStatementsIIndependentAuditor’sReport
Aretheseinterimfinancialstatementsauditedbyanindependentauditor?
□Yes√NoTheseinterimfinancialstatementshavenotbeenauditedbyanindependentauditor.
IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
30June2023
Unit:RMB
| Item | 30June2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 851,514,113.92 | 930,013,350.97 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 361,470,809.32 | 370,103,602.57 |
| Derivativefinancialassets | ||
| Notesreceivable | 303,323,811.21 | 297,125,872.54 |
| Accountsreceivable | 934,790,431.84 | 370,322,179.77 |
| Accountsreceivablefinancing | 73,649,132.14 | 242,813,392.79 |
| Prepayments | 13,987,786.33 | 6,330,202.69 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 86,055,608.38 | 32,938,305.16 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 323,730.00 | |
| Financialassetspurchasedunder |
| resaleagreements | ||
| Inventories | 557,524,141.36 | 571,996,881.74 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 6,821,658.96 | 49,279,022.49 |
| Totalcurrentassets | 3,189,137,493.46 | 2,870,922,810.72 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | 40,015,268.70 | 39,309,587.93 |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 1,042,219,240.08 | 955,560,240.08 |
| Othernon-currentfinancialassets | 373,500,000.00 | 373,500,000.00 |
| Investmentproperty | 40,942,541.87 | 42,160,779.65 |
| Fixedassets | 683,448,533.29 | 720,061,387.76 |
| Constructioninprogress | 30,905,577.10 | 30,281,547.56 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 149,758,450.45 | 157,392,217.54 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | 3,145,658.61 | 3,279,970.32 |
| Deferredincometaxassets | 4,617,363.32 | 26,220,575.93 |
| Othernon-currentassets | 1,393,241.19 | 670,735.93 |
| Totalnon-currentassets | 2,369,945,874.61 | 2,348,437,042.70 |
| Totalassets | 5,559,083,368.07 | 5,219,359,853.42 |
| Currentliabilities: | ||
| Short-termborrowings | 110,447,699.49 | 115,437,700.65 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 702,452,311.45 | 471,876,397.72 |
| Accountspayable | 647,261,475.07 | 747,010,098.88 |
| Advancesfromcustomers | 815,054.54 | 837,425.55 |
| Contractliabilities | 33,094,812.97 | 32,843,692.83 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 13,799,549.93 | 49,351,022.47 |
| Taxespayable | 5,326,332.75 | 8,570,175.39 |
| Otherpayables | 162,180,812.51 | 160,046,882.93 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 108,306,935.42 | 78,645,741.16 |
| Totalcurrentliabilities | 1,783,684,984.13 | 1,664,619,137.58 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares |
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 34,500,761.21 | 36,205,625.94 |
| Deferredincometaxliabilities | 178,842,024.98 | 161,360,251.33 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 213,342,786.19 | 197,565,877.27 |
| Totalliabilities | 1,997,027,770.32 | 1,862,185,014.85 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 640,133,963.01 | 640,133,963.01 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 729,001,854.07 | 655,341,704.07 |
| Specificreserve | 21,026,667.08 | 18,848,856.75 |
| Surplusreserves | 349,197,725.72 | 349,197,725.72 |
| Generalreserve | ||
| Retainedearnings | 1,040,376,308.94 | 915,495,909.35 |
| TotalequityattributabletoownersoftheCompanyastheparent | 3,485,429,025.82 | 3,284,710,665.90 |
| Non-controllinginterests | 76,626,571.93 | 72,464,172.67 |
| Totalowners’equity | 3,562,055,597.75 | 3,357,174,838.57 |
| Totalliabilitiesandowners’equity | 5,559,083,368.07 | 5,219,359,853.42 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 30June2023 | 1January2023 |
| Currentassets: | ||
| Monetaryassets | 691,752,491.28 | 792,744,709.77 |
| Held-for-tradingfinancialassets | 250,354,111.11 | 280,354,111.11 |
| Derivativefinancialassets | ||
| Notesreceivable | 271,518,313.78 | 282,556,327.54 |
| Accountsreceivable | 881,319,079.38 | 329,060,940.50 |
| Accountsreceivablefinancing | 127,421,331.00 | 291,837,385.00 |
| Prepayments | 11,595,756.22 | 3,097,586.07 |
| Otherreceivables | 360,599,343.16 | 179,596,495.57 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 365,868,555.83 | 397,626,837.43 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 3,899,274.38 | 15,594,949.05 |
| Totalcurrentassets | 2,964,328,256.14 | 2,572,469,342.04 |
| Non-currentassets: | ||
| Investmentsindebtobligations | 40,015,268.70 | 39,309,587.93 |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 569,273,530.03 | 569,273,530.03 |
| Investmentsinotherequityinstruments | 1,042,219,240.08 | 955,560,240.08 |
| Othernon-currentfinancialassets | 373,500,000.00 | 373,500,000.00 |
| Investmentproperty | 40,942,541.87 | 42,160,779.65 |
| Fixedassets | 227,448,700.45 | 249,558,305.21 |
| Constructioninprogress | 19,479,659.35 | 18,366,604.84 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 58,585,924.15 | 64,783,364.89 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 182,217.62 | 19,860,262.43 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 2,371,647,082.25 | 2,332,372,675.06 |
| Totalassets | 5,335,975,338.39 | 4,904,842,017.10 |
| Currentliabilities: | ||
| Short-termborrowings | 107,447,699.49 | 108,437,700.65 |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 749,494,510.31 | 518,918,596.58 |
| Accountspayable | 529,683,922.85 | 541,911,517.64 |
| Advancesfromcustomers | 837,425.55 | |
| Contractliabilities | 25,822,486.68 | 24,129,579.35 |
| Employeebenefitspayable | 4,814,304.67 | 41,558,489.86 |
| Taxespayable | 2,131,290.34 | 3,119,171.69 |
| Otherpayables | 150,757,906.83 | 151,206,684.89 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 107,037,385.15 | 67,810,395.33 |
| Totalcurrentliabilities | 1,677,189,506.32 | 1,457,929,561.54 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares |
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 34,500,761.21 | 36,205,625.94 |
| Deferredincometaxliabilities | 161,790,514.83 | 149,039,152.68 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 196,291,276.04 | 185,244,778.62 |
| Totalliabilities | 1,873,480,782.36 | 1,643,174,340.16 |
| 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 | 729,001,854.07 | 655,341,704.07 |
| Specificreserve | 21,026,667.08 | 18,848,856.75 |
| Surplusreserves | 349,197,725.72 | 349,197,725.72 |
| Retainedearnings | 998,157,101.49 | 873,168,182.73 |
| Totalowners’equity | 3,462,494,556.03 | 3,261,667,676.94 |
| Totalliabilitiesandowners’equity | 5,335,975,338.39 | 4,904,842,017.10 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | H12023 | H12022 |
| 1.Revenue | 1,350,517,639.85 | 1,178,222,492.04 |
| Including:Operatingrevenue | 1,350,517,639.85 | 1,178,222,492.04 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 1,322,596,281.11 | 1,175,890,460.94 |
| Including:Costofsales | 1,168,898,203.83 | 1,051,395,232.42 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 7,827,255.58 | 5,360,425.54 |
| Sellingexpense | 62,131,032.17 | 51,759,201.38 |
| Administrativeexpense | 52,877,371.06 | 40,216,534.11 |
| R&Dexpense | 35,839,071.42 | 40,159,787.47 |
| Financecosts | -4,976,652.95 | -13,000,719.98 |
| Including:Interestexpense | 3,343,884.90 | 3,276,786.93 |
| Interestincome | 4,264,102.18 | 6,634,812.22 |
| Add:Otherincome | 3,299,056.52 | 1,602,830.77 |
| Returnoninvestment(“-”forloss) | 3,226,921.70 | 11,744,282.88 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 19,360,455.86 | -30,488,388.88 |
| Creditimpairmentloss(“-”forloss) | -14,547,351.17 | -11,932,826.66 |
| Assetimpairmentloss(“-”forloss) | -565,273.49 | 4,342,775.64 |
| Assetdisposalincome(“-”forloss) | 105,395,693.25 | -361,395.36 |
| 3.Operatingprofit(“-”forloss) | 144,090,861.41 | -22,760,690.51 |
| Add:Non-operatingincome | 495,538.97 | 2,349,897.18 |
| Less:Non-operatingexpense | 1,297,348.13 | 392,257.24 |
| 4.Profitbeforetax(“-”forloss) | 143,289,052.25 | -20,803,050.57 |
| Less:Incometaxexpense | 7,189,328.33 | -6,206,048.88 |
| 5.Netprofit(“-”fornetloss) | 136,099,723.92 | -14,597,001.69 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 136,099,723.92 | -14,597,001.69 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 131,937,324.66 | -14,595,269.61 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 4,162,399.26 | -1,732.08 |
| 6.Othercomprehensiveincome,netoftax | 73,660,150.00 | -49,265,150.00 |
| AttributabletoownersoftheCompanyastheparent | 73,660,150.00 | -49,265,150.00 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 73,660,150.00 | -49,265,150.00 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 73,660,150.00 | -49,265,150.00 |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 209,759,873.92 | -63,862,151.69 |
| AttributabletoownersoftheCompanyastheparent | 205,597,474.66 | -63,860,419.61 |
| Attributabletonon-controllinginterests | 4,162,399.26 | -1,732.08 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.1870 | -0.0207 |
| 8.2Dilutedearningspershare | 0.1870 | -0.0207 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | H12023 | H12022 |
| 1.Operatingrevenue | 1,245,166,233.55 | 1,078,301,529.20 |
| Less:Costofsales | 1,092,404,343.46 | 970,973,105.63 |
| Taxesandsurcharges | 4,338,250.54 | 3,155,384.25 |
| Sellingexpense | 55,517,272.45 | 46,868,501.97 |
| Administrativeexpense | 37,544,625.71 | 30,805,739.43 |
| R&Dexpense | 31,151,256.18 | 38,111,512.10 |
| Financecosts | -8,436,313.24 | -12,522,766.90 |
| Including:Interestexpense | 1,562,299.35 | 2,512,056.83 |
| Interestincome | 7,952,110.19 | 6,463,613.32 |
| Add:Otherincome | 3,200,820.43 | 1,591,699.00 |
| Returnoninvestment(“-”forloss) | 2,732,242.23 | 11,181,384.11 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 354,111.11 | 677,397.27 |
| Creditimpairmentloss(“-”forloss) | -11,755,063.73 | -18,418,259.44 |
| Assetimpairmentloss(“-”forloss) | -410,653.17 | 4,630,554.88 |
| Assetdisposalincome(“-”forloss) | 105,393,483.13 | 3,985,814.42 |
| 2.Operatingprofit(“-”forloss) | 132,161,738.45 | 4,558,642.96 |
| Add:Non-operatingincome | 106,436.47 | |
| Less:Non-operatingexpense | 363,382.47 | 551,906.60 |
| 3.Profitbeforetax(“-”forloss) | 131,798,355.98 | 4,113,172.83 |
| Less:Incometaxexpense | -247,487.85 | 0.00 |
| 4.Netprofit(“-”fornetloss) | 132,045,843.83 | 4,113,172.83 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 132,045,843.83 | 4,113,172.83 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 73,660,150.00 | -49,265,150.00 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 73,660,150.00 | -49,265,150.00 |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 73,660,150.00 | -49,265,150.00 |
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | ||
| 6.Totalcomprehensiveincome | 205,705,993.83 | -45,151,977.17 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | H12023 | H12022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 1,010,313,942.34 | 852,422,695.04 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 69,957,787.95 | 21,003,040.54 |
| Cashgeneratedfromotheroperatingactivities | 11,524,017.72 | 15,868,307.49 |
| Subtotalofcashgeneratedfromoperatingactivities | 1,091,795,748.01 | 889,294,043.07 |
| Paymentsforcommoditiesandservices | 918,215,681.86 | 692,753,586.82 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 174,060,228.57 | 171,587,076.85 |
| Taxespaid | 23,195,064.69 | 22,071,086.33 |
| Cashusedinotheroperatingactivities | 81,121,589.64 | 77,182,794.19 |
| Subtotalofcashusedinoperatingactivities | 1,196,592,564.76 | 963,594,544.19 |
| Netcashgeneratedfrom/usedinoperatingactivities | -104,796,816.75 | -74,300,501.12 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 623,016,751.99 | 60,336,793.52 |
| Returnoninvestment | 4,508,124.22 | 11,678,930.55 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 57,844,735.80 | 176.99 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 169,856.31 | |
| Subtotalofcashgeneratedfrominvestingactivities | 685,369,612.01 | 72,185,757.37 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 135,352,075.57 | 32,486,960.27 |
| Paymentsforinvestments | 595,377,614.00 | 126,279,631.00 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 730,729,689.57 | 158,766,591.27 |
| Netcashgeneratedfrom/usedininvestingactivities | -45,360,077.56 | -86,580,833.90 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | ||
| Cashgeneratedfromotherfinancingactivities | 49,395,924.99 | |
| Subtotalofcashgeneratedfromfinancingactivities | 49,395,924.99 | |
| Repaymentofborrowings | ||
| Interestanddividendspaid | 8,886,489.92 | 18,895,164.72 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 2,604,075.01 | |
| Subtotalofcashusedinfinancingactivities | 8,886,489.92 | 21,499,239.73 |
| Netcashgeneratedfrom/usedinfinancingactivities | -8,886,489.92 | 27,896,685.26 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | ||
| 5.Netincreaseincashandcashequivalents | -159,043,384.23 | -132,984,649.76 |
| Add:Cashandcashequivalents,beginningoftheperiod | 810,350,966.05 | 573,623,529.10 |
| 6.Cashandcashequivalents,endoftheperiod | 651,307,581.82 | 440,638,879.34 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | H12023 | H12022 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 882,438,846.47 | 786,613,668.93 |
| Taxrebates | 20,491,423.94 | 15,030,607.99 |
| Cashgeneratedfromotheroperatingactivities | 9,587,042.20 | 11,394,587.24 |
| Subtotalofcashgeneratedfromoperatingactivities | 912,517,312.61 | 813,038,864.16 |
| Paymentsforcommoditiesandservices | 774,101,281.20 | 656,683,755.72 |
| Cashpaidtoandforemployees | 139,789,044.66 | 142,487,390.71 |
| Taxespaid | 7,394,673.54 | 17,126,241.78 |
| Cashusedinotheroperatingactivities | 247,440,184.71 | 65,961,229.60 |
| Subtotalofcashusedinoperatingactivities | 1,168,725,184.11 | 882,258,617.81 |
| Netcashgeneratedfrom/usedinoperatingactivities | -256,207,871.50 | -69,219,753.65 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 610,000,000.00 | |
| Returnoninvestment | 4,337,174.74 | 11,181,384.11 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 57,813,485.80 | |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 672,150,660.54 | 11,181,384.11 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 8,705,239.80 | 3,984,411.73 |
| Paymentsforinvestments | 580,000,000.00 | 53,520,800.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 588,705,239.80 | 57,505,211.73 |
| Netcashgeneratedfrom/usedininvestingactivities | 83,445,420.74 | -46,323,827.62 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | ||
| Cashgeneratedfromotherfinancingactivities | 49,395,924.99 | |
| Subtotalofcashgeneratedfromfinancingactivities | 49,395,924.99 | |
| Repaymentofborrowings | ||
| Interestanddividendspaid | 8,773,914.91 | 18,348,005.18 |
| Cashusedinotherfinancingactivities | 47,604,075.01 | |
| Subtotalofcashusedinfinancingactivities | 8,773,914.91 | 65,952,080.19 |
| Netcashgeneratedfrom/usedinfinancingactivities | -8,773,914.91 | -16,556,155.20 |
| 4.Effectofforeignexchangerateschangesoncashandcash |
| equivalents | ||
| 5.Netincreaseincashandcashequivalents | -181,536,365.67 | -132,099,736.47 |
| Add:Cashandcashequivalents,beginningoftheperiod | 704,659,776.14 | 476,410,739.41 |
| 6.Cashandcashequivalents,endoftheperiod | 523,123,410.47 | 344,311,002.94 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’EquityH12023
Unit:RMB
| Item | H12023 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheperiodofprioryear | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 73,660,150.00 | 2,177,810.33 | 124,880,399.59 | 200,718,359.92 | 4,162,399.26 | 204,880,759.18 | |||||||
| 3.1Totalcomprehensiveincome | 73,660,150.00 | 131,937,324.66 | 205,597,474.66 | 4,162,399.26 | 209,759,873.92 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | |||||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | |||||||||||||
| 3.3Profitdistribution | -7,056,925.07 | -7,056,925.07 | -7,056,925.07 | ||||||||||
| 3.3.1Appropriationtosurplusreserves | |||||||||||||
| 3.3.2Appropriationtogeneralreserve |
| 3.3.3Appropriationtoowners(orshareholders) | -7,056,925.07 | -7,056,925.07 | -7,056,925.07 | ||||||||||
| 3.3.4Other | |||||||||||||
| 3.4Transferswithinowners’equity | |||||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | 2,177,810.33 | 2,177,810.33 | 2,177,810.33 | ||||||||||
| 3.5.1Increaseintheperiod | 4,598,473.04 | 4,598,473.04 | 4,598,473.04 | ||||||||||
| 3.5.2Usedintheperiod | 2,420,662.71 | 2,420,662.71 | 2,420,662.71 | ||||||||||
| 3.6Other | |||||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 640,133,963.01 | 729,001,854.07 | 21,026,667.08 | 349,197,725.72 | 1,040,376,308.94 | 3,485,429,025.82 | 76,626,571.93 | 3,562,055,597.75 |
H12022
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 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParentH12023
Unit:RMB
| Item | H12023 | |||||||||||
| 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 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.BalanceasatthebeginningoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 73,660,150.00 | 2,177,810.33 | 124,988,918.76 | 200,826,879.09 | ||||||||
| 3.1Totalcomprehensiveincome | 73,660,150.00 | 132,045,843.83 | 205,705,993.83 | |||
| 3.2Capitalincreasedandreducedbyowners | ||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||
| 3.2.4Other | ||||||
| 3.3Profitdistribution | -7,056,925.07 | -7,056,925.07 | ||||
| 3.3.1Appropriationtosurplusreserves | ||||||
| 3.3.2Appropriationtoowners(orshareholders) | -7,056,925.07 | -7,056,925.07 | ||||
| 3.3.3Other | ||||||
| 3.4Transferswithinowners’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 2,177,810.33 | 2,177,810.33 | ||||||||
| 3.5.1Increaseintheperiod | 4,598,473.04 | 4,598,473.04 | ||||||||
| 3.5.2Usedintheperiod | 2,420,662.71 | 2,420,662.71 | ||||||||
| 3.6Other | ||||||||||
| 4.BalanceasattheendoftheReportingPeriod | 705,692,507.00 | 659,418,700.67 | 729,001,854.07 | 21,026,667.08 | 349,197,725.72 | 998,157,101.49 | 3,462,494,556.03 |
H12022
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 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
III.CompanyProfileChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)wasfoundedon5May1994,whichisacompanylimitedbysharespromotedsolelybyChangzhouDieselEnginePlantthroughtheapprovalbytheStateCommissionforRestructuringtheEconomicSystemswithdocumentTGS[1993]No.9on15January1993bywayofpublicofferingofshares.WiththeapprovedofthePeople’sGovernmentofJiangsuProvinceSZF[1993]No.67,aswellasreexaminedandapprovedbyChinaSecuritiesRegulatoryCommission(“CSRC”)throughdocumentZJFSZ(1994)No.9,theCompanyinitiallyissuedAsharestothepublicfrom15March1994to30March1994.AsapprovedbytheShenzhenStockExchangethroughdocumentSZSFZ(1994)No.15,suchtradablesharesofthepublicgotlistingon1July1994atShenzhenStockExchangewith“SuChangchaiA”forshortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).In1996,withtherecommendationoftheOfficeofthePeople’sGovernmentofJiangsuProvinceSZBH[1996]No.13,aswellasfirstreviewbyShenzhenMunicipalSecuritiesAdministrationOfficethroughSZBZ[1996]No.24,andapprovaloftheStateCouncilSecuritiesCommissionZWF[1996]No.27,theCompanyissued100millionBsharestoqualifiedinvestorson27August1996to30August1996,gettinglistedon13September1996.On9June2006,theCompanyheldashareholders’generalmeetingrelatedtoAsharesmarkettoexamineandapprovesharemergerreformplan,andperformedthesharemergerreformon19June2006.Asexaminedandapprovedatthe2
nd
ExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.Anon-publicofferingofupto168,412,297newshareswasdeliberatedonandapprovedasaresolutionofthe2020AnnualGeneralMeetingheldon7May2021andapprovedbytheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)issuedbyChangchaiCompanyLimitedtheChinaSecuritiesRegulatoryCommission.On16June2021,thecapitalverificationreport"S.G.W[2021]B062"wasissuedbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),confirmingthattheCompanyhadissued144,318,181RMBordinaryshares(Ashares)inanon-publicoffering,withanadditionalpaid-incapital(sharecapital)ofRMB144,318,181.ThetotalamountraisedwasRMB634,999,996.40;thenetamountraisedwasRMB620,665,733.97,whichincreasedthecapitalreserve(sharecapitalpremium)byRMB476,347,552.97.Asof31December2021,thetotalsharecapitaloftheCompanywasRMB705,692,507.TheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproductionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelofChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combineharvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsetsandshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedintheReporting
Period.TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson22August2023.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.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
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,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthe
controlrightofthecombinedparties,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’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,which
shallbeadjustedastheCompany;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-heldassets
accordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.
8.RecognitionStandardforCashandCashEquivalentsIntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessConcerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintotherecordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankofChinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchangesshallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshallbeconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedbythePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamountconvertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currencyamountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbytheforeign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleofcapitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecordedintotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currencynon-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchangegain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothegain/lossofthecurrentperiod.
(2)TranslationofforeigncurrencyTheassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstruments
(1)ClassificationofFinancialInstrumentsTheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:
financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)andfinancialassetsatfairvaluethroughprofitorlossFinancialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①FinancialassetsmeasuredatamortizedcostFinancialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.ForaccountsreceivableexcludingsignificantfinancingandaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,theinitialmeasurementshallbemadeatthecontracttransactionprice.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenrecoveredordisposed,thedifferencebetweenthepriceobtainedandthecarryingvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
②Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)includeaccountsreceivablefinancingandinvestmentinotherdebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueexceptforinterestcalculatedwithactualrates,impairmentlossesorgainsandexchangegainsorlossesshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintothecurrentprofitorloss.
③Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)includeinvestmentinotherequityinstruments,etc.whichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueshallberecordedintoothercomprehensiveincome.Thedividendsobtainedshallberecordedintothecurrentprofitorloss.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintoretainedearnings.
④FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
⑤FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandderivativefinancialliabilitieswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialliabilitiesshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetween
thecarryingvalueandthepaidconsiderationshallberecordedintothecurrentprofitorloss.
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 | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
11.AccountsReceivableSee“10.FinancialInstruments”.
12.AccountsReceivableFinancingSee“10.FinancialInstruments”.
13.OtherReceivablesSee“10.FinancialInstruments”.
14.Inventory
(1)CategoryofInventoryInventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumedintheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtherawmaterials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourcedetc.
(2)PricingmethodPurchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthedispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproductsaccordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)DeterminationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionforfallingpriceofinventoryAtthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.Whenalltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingpricereserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,theinventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Ofwhich:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchasthefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproductsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
15.ContractAssetsContractAssetsmeansthattheCompanyisendowedwiththerighttochargetheconsiderationthroughtransferringanycommodityorservicetotheclient,andsuchrightdependsonotherfactorsexceptthepassingoftime.TheCompany’sunconditionalright(onlydependingonthepassingoftime)ofchargingtheconsiderationfromtheclientshallbeseparatelypresentedasreceivables.TherecognitionmethodandaccountingtreatmentmethodoftheestimatedcreditlossofcontractassetsareconsistentwiththatspecifiedinNotesV.11.
16.ContractCosts
(1)CostsfromAcquiringContractIftheincrementalcostresultingfromtheCompany’sacquiringofcontract(namelycostsmerelyresultingfromtheacquiringofcontract)ispredictedtoberetrieved,itshallberecognizedasanassets,amortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Iftheassets’amortizationperioddoesnotexceedoneyear,itshallbeimmediatelyincludedintothecurrentprofitandloss.OtherexpensesresultingfromtheCompany’sacquiringofcontractshallalsobeincludedintothecurrentprofitandlossunlessitisexplicitlybornebytheclient.
(2)CostsfromExecutingContractTheCompany’scostsfromexecutingcontractisnotcoveredbyotherASBEexceptforRevenueStandards,andwhenthefollowingsituationsaremet,suchcostscanberecognizedasanassets:①thecostsaredirectlyrelatedtoacurrentorpredictedcontract;②thecostsincreasetheCompany’sresourcesappliedtofulfillperformanceobligationsinthefuture;③thecostsarepredictedtoberetrieved.Therecognizedassetsshallbeamortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Ifthebookvalueofcontractcostsishigherthanthedifferenceofthefollowingtwoitems,correspondingdepreciationreservesshallbecountedandwithdrawnanditshallberecognizedastheassetsdepreciationloss:①theresidualconsiderationpredictedtobeacquiredbytransferringcommoditiesrelatedtotheassets;②thecostspredictedtooccurduetothetransferofrelatedcommodities.Ifthedifferencebetween①and②ishigherthanthebookvalueofcontractcostsduetoanychangeinvariousfactorscausingdepreciationinpreviousperiods,itshallberestitutedtothewithdrawnassetsdepreciationreservesandincludedinthecurrentprofitandloss.However,thebookvalueofrestitutedcontractcostsshallnotexceedthebookvalueoftheassetsonthedayofrestitutionbasedonthehypothesisthatdepreciationreservesarenotcountedandwithdrawn.
17.AssetsHeldforSaleTheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowingconditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.
18.Long-termEquityInvestments
(1)JudgmentstandardofjointcontrolandsignificantinfluencesJointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)RecognitionforinitialinvestmentcostTheinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeansTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-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,itshall
berecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theCompanyshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoowners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheCompanyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingto
therecognitionandmeasurementstandardsoffinancialinstrument,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,PricingandDepreciationMethodofFixedAssetsbyFinanceLease
TheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
1)Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevantconditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscouldbetransferredtotheCompany;
2)TheCompanyownsthechoosingrightforpurchasingandleasingthefixedassets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinanceleasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyontheleasestartingdate;
3)Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%oraboveoftheusefullifeoftheleasefixedassets;
4)ThecurrentvalueoftheminimumleasepaymentontheleasestartingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;
5)ThenatureoftheleaseassetsisspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.Thefixedassetsbyfinanceleaseshouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumleasepaymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedastheentryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancingexpense.Fortheinitialdirectexpensesoccurintheleasenegotiationsandthesigningprocessoftheleasecontractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedbyadoptingtheactualinterestrateduringtheperiodoftheleaseterm.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife
21.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
22.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumson
borrowings,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,checktheservicelifeandtheamortizationmethodofintangibleassetswith
limitedservicelife.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,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcash
flowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
25.Long-termDeferredExpensesLong-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
26.ContractLiabilitiesContractliabilitiesrefertotheCompany’sobligationsintransferringcommoditiesorservicestotheclientforthereceivedorpredictedconsideration.Contractassetsandcontractliabilitiesunderthesamecontractshallbepresentedbasedonthenetamount.
27.EmployeeBenefits
(1)AccountingTreatmentofShort-termCompensationShort-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemissionTheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.DefinedcontributionplansDuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
28.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)MeasurementofprovisionsTheCompanyshallmeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.
TheCompanyshallcheckthebookvalueoftheprovisionsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
30.RevenueAccountingpoliciesforrecognitionandmeasurementofrevenue:
WhentheCompanyfulfillsitsdueperformanceobligations(namelywhentheclientobtainsthecontroloverrelatedcommoditiesorservices),revenuesshallberecognizedbasedontheobligation’samortizedtransactionprice.PerformanceObligationreferstotheCompany’spromiseoftransferringcommoditiesorservicesthatcanbeclearlydefinedtotheclient.TransactionPricereferstotheconsiderationamountdulychargedbytheCompanyfortransferringcommoditiesorservicestotheclient,excludinganyamountchargedbythethirdpartyandanyamountpredictedtobereturnedtotheclient.ControlOverRelevantCommoditiesmeansthattheuseofcommoditiescanbecontrolledandalmostalleconomicinterestscanbeobtained.Onthecontractcommencementday,theCompanyshallevaluatethecontract,recognizeindividualperformanceobligationandconfirmthatindividualperformanceobligationisfulfilledinacertainperiod.Whenoneofthefollowingconditionsismet,suchperformanceobligationshallbedeemedasfulfilledinacertainperiod,andtheCompanyshallrecognizeitasrevenuewithinacertainperiodaccordingtotheperformanceschedule:(1)theclientobtainsandconsumestheeconomicinterestsresultingfromtheCompany’sperformanceofcontractwhileperformingthecontract;(2)theclientisabletocontrolthecommoditiesunderconstructionduringtheperformance;(3)commoditiesproducedbytheCompanyduringtheperformancepossesstheirreplaceablepurpose,andtheCompanyhastherighttochargeallfinishedpartsduringthecontractperiod;otherwise,theCompanyshallrecognizetherevenuewhentheclientobtainsthecontroloverrelevantcommoditiesorservices.TheCompanyshalladopttheInputMethodtodeterminethePerformanceSchedule.Namely,thePerformanceScheduleshallbedeterminedaccordingtotheCompany’sinputforfulfillingperformanceobligations.WhenthePerformanceSchedulecannotbereasonablydeterminedandallresultingcostsarepredictedtobecompensated,theCompanyshallrecognizetherevenuebasedontheresultingcostamounttillthePerformanceSchedulecanbereasonablydetermined.Whenthecontractinvolvestwoormorethantwoperformanceobligations,thetransactionpriceshallbeamortizedtoeachsingleperformanceobligationonthecontractcommencementdayaccordingtotherelativeproportionoftheindependentsellingpriceofcommoditiesorservicesundereachsingleperformanceobligation.Ifanysolidevidenceprovesthatthecontractdiscountorvariableconsiderationonlyrelatestooneormorethanone(notall)performanceobligationunderthecontract,theCompanyshallamortizethecontractdiscountorvariableconsiderationtooneormorethanonerelatedperformanceobligations.IndependentsellingpricereferstothepriceadoptedbytheCompanytoindependentlysellcommoditiesorservicestotheclient.However,independentsellingpricecannotbedirectlyobserved.TheCompanyshallestimatetheindependentsellingpricebycomprehensivelyconsideringallrelatedinformationthatcanbereasonablyobtainedandmaximallyadoptingtheobservableinputvalue.VariableConsiderationIfanyvariableconsiderationexistsinthecontract,theCompanyshalldeterminetheoptimalestimationofthevariableconsiderationbasedontheexpectedvaluesorthemostpossibleamount.Thevariableconsideration’stransactionpriceshallbeincludedwithoutexceedingthetotalrevenueamountrecognizedwithouttheriskofsignificantrestitutionwhenalluncertaintiesareeliminated.Oneachbalancesheetday,theCompanyshallre-estimatethevariableconsiderationamounttobeincludedinthetransactionprice.
ConsiderationPayabletotheClientIfanyconsiderationpayabletotheclientexistsinthecontract,theCompanyshallusesuchconsiderationtooffsetthetransactionpriceunlesssuchconsiderationispaidforacquiringotherclearly-definedcommoditiesorservicesfromtheclient,andwritedownthecurrentrevenueatthelatertimebetweenthetimeofrecognizingrelevantrevenuesandthetimeofpaying(orpromisingthepayment)theconsiderationtotheclient.SaleswiththeQualityAssuranceForsaleswiththeQualityAssurance,iftheQualityAssuranceinvolvesanotherseparateserviceexceptfortheguaranteeofallsoldcommoditiesorservicesmeetingallestablishedstandards,theQualityAssuranceshallconstituteasinglePerformanceObligation;otherwise,theCompanyshallmakecorrespondingaccountingtreatmenttotheQualityAssuranceaccordingtoASBENo.13--Contingency.MainResponsibilityPerson/AgentAccordingtowhetherthecontrolovercommoditiesorservicesisobtainedbeforetheyaretransferredtotheclient,theCompanycanjudgewhetheritisMainResponsibilityPersonorAgentbasedonitsstatusduringthetransaction.IftheCompanycancontrolcommoditiesorservicesbeforetheyaretransferredtotheclient,theCompanyshallbeMainResponsibilityPerson,andrevenuesshallberecognizedaccordingtothetotalconsiderationamountreceivedortobereceived;otherwise,theCompanyshallbeAgent,andrevenuesshallberecognizedaccordingtothecommissionorservicefeespredictedtobedulycharged.However,suchamountshallbedeterminedbasedonthenetamountafterdeductingotheramountspayabletootherrelatedpartiesfromthetotalconsiderationreceivedortobedulyreceivedorthefixedcommissionamountorproportion.SpecificmethodsThespecificmethodsoftheCompany'srevenuerecognitionareasfollows:
ThesalecontractbetweentheCompanyanditscustomersusuallycontainsonlytheperformanceobligationforthetransferofgoods,whichissatisfiedatapointintime.Thefollowingrequirementsmustbemettoconfirmtherevenueofdomesticproducts:TheCompanyhasdeliveredthegoodstothecustomerinaccordancewiththecontractandthecustomerhasacceptedthegoods.Thepaymenthasbeenrecoveredorthereceiptvoucherhasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.Thecustomerhasobtainedcontroloftherelevantgoods.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.Thefollowingrequirementsmustbemettoconfirmtherevenueofexportproducts:TheCompanyhasdeclaredtheproductsinaccordancewiththecontract,obtainedthebillsoflading,andreceivedthepaymentorobtainedthereceiptvoucherandtherelatedeconomicbenefitsarelikelytoflowin.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.InterestRevenueInterestRevenueshallbedeterminedaccordingtothetimeoftheCompany’suseofmonetarycapitalandtheactualinterestrate.
31.GovernmentGrants
(1)TypeAgovernmentgrantmeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentgrantsconsistofthegovernmentgrantspertinenttoassetsandgovernmentgrantspertinenttoincomeaccordingtotherelevantgovernmentdocuments.Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisofthe
Companyclassifiesthegovernmentgrantspertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
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)Basisofrecognizingthedeferredincometaxliabilities
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,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.Thereceived
variableleasepaymentsthatarenotcoveredinthemeasurementofthenetinvestmentintheleaseareincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.
(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.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforotherreasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.
(2)MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.
(3)InventoryfallingpricereservesTheCompanyfollowstheinventoryaccountingpolicyandcarriesoutmeasurementbasedonwhichissmallerbetweenthecostandthenetrealizablevalue.Ifthecostofinventoriesishigherthanitsnetrealizablevalue,thentheinventoryfallingpricesreserveswereimplemented.Theimpairmentofinventoriestonetrealizablevalueisbasedonanassessmentofthemarketabilityoftheinventoriesandtheirnetrealizablevalue.Themanagementshalldeterminetheimpairmentofinventoriesafterobtainingreliableevidencewhiletakingintoaccountthepurposeofholdinginventories,theeffectofitemsafterthebalancesheetdate,andotherfactors.Differencesbetweenactualresultsandoriginalestimateswillaffectthecarryingvalueofinventoriesandtheprovisionorreversalofreversesforfallingpricesofinventoriesintheperiodinwhichtheestimatesarechanged.
(4)DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
(5)Reservesforlong-termassetsimpairmentTheCompanydeterminesatthebalancesheetdatewhetherthereisanyindicationthatanon-currentasset,otherthanafinancialasset,maybeimpaired.Forintangibleassetswithanuncertainusefullife,impairmenttestsshallbeconductedwhenthereisanindicationofimpairmentbesidestheannualimpairmenttest.Othernon-currentassetsotherthanfinancialassetsshallbetestedforimpairmentwhenthereisanindicationthatthecarryingamountisirrecoverable.Animpairmentisindicatedwhenthecarryingamountofanassetorassetgroupisgreaterthantherecoverableamount,whichisthehigherofthefairvalueminusdisposalexpensesandthepresentvalueofestimatedfuturecashflows.Thenetvalueofthefairvalueminusdisposalexpensesisdeterminedbyreferringtothenegotiablesalepriceorobservablemarketpriceofsimilarassetsinafairtransactionanddeductingincrementalcostsdirectlyattributabletothedisposaloftheasset.Estimatingthepresentvalueoffuturecashflowsrequiressignificantjudgmentswithrespecttotheproductionvolumeoftheasset(orassetgroup),thesellingprice,therelatedoperatingcostsandthediscountrateusedincalculatingthepresentvalue.TheCompanyusesallavailablerelevantinformationinestimatingrecoverableamounts,includingprojectionsofvolumes,sellingpricesandrelatedoperatingcostsbasedonreasonableandsupportableassumptions.
(6)Depreciationandamortization
TheCompanydepreciatesandamortizesinvestmentproperties,fixedassetsandintangibleassetsonastraight-linebasiswithintheirservicelivesaftertakingintoaccounttheirresidualvalues.TheCompanyregularlyreviewsservicelivestodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.TheservicelifeisdeterminedbytheCompanybasedonpastexperiencewithsimilarassetsandexpectedtechnologicalupdates.Depreciationandamortizationexpenseswillbeadjustedinthefutureperiodifthereisasignificantchangeinpreviousestimates.
(7)DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.
(8)IncometaxInthenormaloperatingactivitiesoftheCompany,theultimatetaxtreatmentandcalculationofcertaintransactionsaresubjecttocertainuncertainties.Whethersomeitemscanbedisbursedbeforetaxrequirestheapprovalofthetaxauthorities.Ifthefinaldeterminationofthesetaxmattersdiffersfromtheamountsinitiallyestimated,thedifferencewillhaveanimpactoncurrentanddeferredincometaxesintheperiodinwhichtheyarefinallydetermined.
35.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
□Applicable√Notapplicable
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstoFinancialStatementItemsattheBeginningoftheYearoftheFirstImplementationoftheNewAccountingStandardsImplementedsince2023
□Applicable√NotapplicableVI.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Payabletosalesrevenue | 13%,9%,6%,5% |
| Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
| Enterpriseincometax | Taxableincome | 25%、15%、5% |
| Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Name | Incometaxrate |
| ChangchaiCompany,Limited | 15% |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHorizonInvestmentCo.,Ltd. | 25% |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 25% |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 15% |
| JiangsuChangchaiMachineryCo.,Ltd. | 25% |
| ChangzhouXingshengRealEstateManagementCo.,Ltd. | 5% |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 15% |
2.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.iseligiblesmallenterprisewithlowprofitsandshallpaythecorporateincometaxattaxrate5%forsmallenterpriseswithlowprofitsduringtheReportingPeriod;thesubsidiaryZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.obtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod.VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 230,083.56 | 251,965.06 |
| Bankdeposits | 675,401,119.95 | 830,914,999.19 |
| Othermonetaryassets | 175,882,910.41 | 98,846,386.72 |
| Total | 851,514,113.92 | 930,013,350.97 |
| Totalamountofrestrictioninusebymortgage,pledgeorfreeze | 173,206,532.10 | 95,662,384.92 |
Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB173,206,532.10,ofwhichRMB168,629,080.81wasthecashdepositforbankacceptancebills,RMB2,993,220.00wascashdepositforL/G,RMB871,348.35wascashdepositforenvironmentandRMB712,882.94wascashdepositforL/C.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 361,470,809.32 | 370,103,602.57 |
| Ofwhich: | ||
| Stocks | 111,116,698.21 | 78,739,311.00 |
| Financialproducts | 250,354,111.11 | 291,364,291.57 |
| Ofwhich: | ||
| Total | 361,470,809.32 | 370,103,602.57 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 303,323,811.21 | 297,125,872.54 |
| Total | 303,323,811.21 | 297,125,872.54 |
Ifthebaddebtprovisionfornotesreceivablewaswithdrawninaccordancewiththegeneralmodelofexpectedcreditlosses,informationrelatedtobaddebtprovisionshallbedisclosedbyreferencetothedisclosuremethodofotherreceivables:
□Applicable√Notapplicable
(2)ThereWereNoNotesReceivablePledgedbytheCompanyatthePeriod-end
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 213,721,703.95 | |
| Total | 213,721,703.95 |
(4)ThereWereNoNotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreementatthePeriod-end
4.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 51,757,257.99 | 4.71% | 34,518,555.59 | 66.69% | 17,238,702.40 | 51,757,257.99 | 9.91% | 34,367,361.83 | 66.40% | 17,389,896.16 |
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 1,047,675,900.30 | 95.29% | 130,124,170.86 | 12.42% | 917,551,729.44 | 470,411,042.15 | 90.09% | 117,478,758.54 | 24.97% | 352,932,283.61 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 1,047,675,900.30 | 95.29% | 130,124,170.86 | 12.42% | 917,551,729.44 | 470,411,042.15 | 90.09% | 117,478,758.54 | 24.97% | 352,932,283.61 |
| Total | 1,099,433,158.29 | 100.00% | 164,642,726.45 | 14.98% | 934,790,431.84 | 522,168,300.14 | 100.00% | 151,846,120.37 | 29.08% | 370,322,179.77 |
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 | 1,731,493.71 | 1,731,493.71 | 100.00% | Difficulttorecover |
| Customer8 | 1,511,937.64 | 755,968.82 | 50.00% | Expectedtodifficultlyrecover |
| Customer9 | 3,329,074.84 | 720,031.71 | 21.63% | Expectedtodifficultlyrecover |
| Customer10 | 2,025,880.18 | 2,025,880.18 | 100.00% | Difficulttorecover |
| Customer11 | 5,972,101.90 | 5,972,101.90 | 100.00% | Difficulttorecover |
| Customer12 | 4,592,679.05 | 4,592,679.05 | 100.00% | Difficulttorecover |
| Total | 37,766,277.50 | 32,288,207.07 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 898,214,835.94 | 17,964,296.72 | 2.00% |
| 1to2years | 28,644,358.99 | 1,432,217.95 | 5.00% |
| 2to3years | 9,017,979.76 | 1,352,696.96 | 15.00% |
| 3to4years | 2,403,195.36 | 720,958.61 | 30.00% |
| 4to5years | 1,853,824.07 | 1,112,294.44 | 60.00% |
| Over5years | 107,541,706.18 | 107,541,706.18 | 100.00% |
| Total | 1,047,675,900.30 | 130,124,170.86 | -- |
Notesofthebasisofdeterminingthegroup:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsincurredactually,amongwhichtheaccountsincurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableif
adoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 913,387,657.93 |
| 1to2years | 29,153,815.65 |
| 2to3years | 9,171,200.96 |
| Over3years | 147,720,483.75 |
| 3to4years | 4,491,084.45 |
| 4to5years | 3,803,573.63 |
| Over5years | 139,425,825.67 |
| Total | 1,099,433,158.29 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
| Withdrawal | Reversalorrecovery | Write-off | |||
| Baddebtprovisionwithdrawnseparately | 34,367,361.83 | 151,193.76 | 34,518,555.59 | ||
| Baddebtprovisionwithdrawnbygroup | 117,478,758.54 | 12,645,412.32 | 130,124,170.86 | ||
| Total | 151,846,120.37 | 12,796,606.08 | 164,642,726.45 | ||
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)ThereWereNoAccountsReceivablewithActualVerificationduringtheReportingPeriod.
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 552,639,182.57 | 50.27% | 12,458,137.94 |
| Customer2 | 84,694,433.47 | 7.70% | 1,693,888.67 |
| Customer3 | 41,213,013.00 | 3.75% | 824,260.26 |
| Customer4 | 40,039,625.72 | 3.64% | 800,792.51 |
| Customer5 | 33,964,600.00 | 3.09% | 679,292.00 |
| Total | 752,550,854.76 | 68.45% |
5.AccountsReceivableFinancing
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 73,649,132.14 | 242,813,392.79 |
| Total | 73,649,132.14 | 242,813,392.79 |
ChangesofaccountsreceivablefinancingandfairvaluethereofintheReportingPeriod
√Applicable□NotapplicablePleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivablefinancing.
□Applicable√NotapplicableOthernotes:
TheCompanydiscountsandendorsesaportionofitsbankacceptancesbasedonitsroutinefundmanagementneeds,andtheconditionsforderecognitionaremet,sothebankacceptancesareclassifiedasfinancialassetsmeasuredatfairvaluewhosechangeisincludedinothercomprehensiveincome.On30June2023,therewasnobankacceptanceforwhichbaddebtprovisionaccruedseparatelyintheCompany.TheCompanymeasurestheprovisionofbaddebtprovisiononthebasisofexpectedcreditlossesthroughouttheduration.TheCompanybelievesthatthecreditriskcharacteristicsofthebankacceptancesitholdsaresimilar,andtherewasnobankacceptanceforwhichbaddebtprovisionaccruedseparately.Inaddition,therewasnosignificantcreditriskinthebankacceptance,andnosignificantlosswouldbecausedbybankdefaults.
(1)AccountsreceivablefinancingwhichhadendorsedbytheCompanyorhaddiscountedbuthadnotdueattheperiod-end
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 263,573,165.89 | |
| Total | 263,573,165.89 |
6.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 13,483,398.14 | 96.39% | 5,941,708.21 | 93.86% |
| 1to2years | 379,608.96 | 2.71% | 289,373.60 | 4.57% |
| 2to3years | 87,058.21 | 0.62% | 71,654.18 | 1.13% |
| Over3years | 37,721.02 | 0.27% | 27,466.70 | 0.43% |
| Total | 13,987,786.33 | 6,330,202.69 | ||
Therewasnoprepaymentwithsignificantamountagingoveroneyearasoftheperiod-end.
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB10,960,900accountingfor78.36%ofthetotalendingbalanceofprepayments.
7.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendsreceivable | 323,730.00 | |
| Otherreceivables | 85,731,878.38 | 32,938,305.16 |
| Total | 86,055,608.38 | 32,938,305.16 |
(1)DividendsReceivable
1)ClassificationofDividendsReceivable
Unit:RMB
| Item(investee) | Endingbalance | Beginningbalance |
| JiangsuLianceElectromechanicalTechnologyCo.,Ltd. | 276,480.00 | |
| GuilinStarsScienceandTechnologyCo.,Ltd. | 47,250.00 | |
| Total | 323,730.00 |
(2)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Collectionsonbehalfoflandacquisition | 47,000,000.00 | |
| Marginandcashpledge | 1,761,816.87 | 2,028,096.87 |
| Intercoursefunds | 56,724,157.74 | 48,701,034.90 |
| Pettycashandborrowingsbyemployees | 734,875.76 | 742,075.76 |
| Other | 13,754,273.07 | 13,635,867.60 |
| Total | 119,975,123.44 | 65,107,075.13 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 373,682.65 | 2,908,755.15 | 28,886,332.17 | 32,168,769.97 |
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | 1,750,745.09 | 1,750,745.09 | ||
| Balanceof30June2023 | 2,124,427.74 | 2,908,755.15 | 28,886,332.17 | 33,919,515.06 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 70,413,701.12 |
| 1to2years | 15,987,431.24 |
| 2to3years | 1,267,129.65 |
| Over3years | 32,306,861.43 |
| 3to4years | 501,252.53 |
| 4to5years | 403,661.17 |
| Over5years | 31,401,947.73 |
| Total | 119,975,123.44 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionforwhichaccruedseparately | 5,536,285.44 | 5,536,285.44 | ||||
| Baddebtprovisionforwhichaccruedbygroup | 26,632,484.53 | 1,750,745.09 | 28,383,229.62 | |||
| Total | 32,168,769.97 | 1,750,745.09 | 33,919,515.06 | |||
4)ThereWasNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontoendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ChangzhouZhonglouDistrictHousingandUrbanRuralDevelopmentBureau | Intercoursefunds | 47,000,000.00 | Within1year | 41.19% | 940,000.00 |
| ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 2.58% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 2.50% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 1.43% | 1,626,483.25 |
| ChangchaiGroupSettlementCenter | Intercoursefunds | 1,140,722.16 | Over5years | 1.00% | 1,140,722.16 |
| Total | 55,560,393.43 | 48.70% | 9,500,393.43 |
8.InventoryWhethertheCompanyneedstocomplywiththerequirementsofrealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Rawmaterials | 148,767,935.41 | 6,026,733.56 | 142,741,201.85 | 163,954,131.27 | 5,982,286.51 | 157,971,844.76 |
| Goodsinprocess | 104,634,477.66 | 10,497,724.74 | 94,136,752.92 | 110,883,778.58 | 10,725,860.43 | 100,157,918.15 |
| Finishedgoods | 330,258,089.18 | 22,773,098.72 | 307,484,990.46 | 322,959,181.08 | 22,755,460.80 | 300,203,720.28 |
| Materialsprocessedoncommission | 11,824,951.25 | 11,824,951.25 | 12,299,968.98 | 12,299,968.98 | ||
| Lowpricedandeasilywornarticles | 1,336,244.88 | 1,336,244.88 | 1,363,429.57 | 1,363,429.57 | ||
| Total | 596,821,698.38 | 39,297,557.02 | 557,524,141.36 | 611,460,489.48 | 39,463,607.74 | 571,996,881.74 |
(2)FallingPriceReservesandimpairmentprovisionforcontractperformancecosts
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Other | Reversalorwrite-off | Other | |||
| Rawmaterials | 5,982,286.51 | 95,068.40 | 50,621.35 | 6,026,733.56 | ||
| Goodsinprocess | 10,725,860.43 | 228,135.69 | 10,497,724.74 | |||
| Finishedgoods | 22,755,460.80 | 470,205.09 | 452,567.17 | 22,773,098.72 | ||
| Total | 39,463,607.74 | 565,273.49 | 731,324.21 | 39,297,557.02 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories
9.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 6,734,450.62 | 47,682,930.23 |
| Prepaidcorporateincometax | 1,505,424.80 | |
| Prepaidexpense | 87,208.34 | 90,667.46 |
| Total | 6,821,658.96 | 49,279,022.49 |
10.InvestmentsinDebtObligations
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Three-yearfixedtermdeposit | 40,015,268.70 | 40,015,268.70 | 39,309,587.93 | 39,309,587.93 | ||
| Total | 40,015,268.70 | 40,015,268.70 | 39,309,587.93 | 39,309,587.93 | ||
Significantinvestmentsindebtobligations
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||||
| Parvalue | Couponrate | Actualinterestrate | Maturitydate | Parvalue | Couponrate | Actualinterestrate | Maturitydate | |
| Three-yearfixedtermdeposit | 37,000,000.00 | 3.80% | 3.72% | 26April2024 | 37,000,000.00 | 3.80% | 3.72% | 26April2024 |
| Total | 37,000,000.00 | 37,000,000.00 | ||||||
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthereportingperiod
□Applicable√Notapplicable
11.Long-termEquityInvestment
Unit:RMB
| Invest | Begin | Increase/decrease | Endin | Endin |
| ees | ningbalance(carryingvalue) | Additionalinvestment | Reducedinvestment | Gainorlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Cashbonusorprofitannouncedtoissue | Withdrawalofdepreciationreserves | Other | gbalance(carryingvalue) | gbalanceofdepreciationreserves |
| 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) | 378,929,240.08 | 378,929,240.08 |
| Otherequityinstrumentinvestmentmeasuredbyfairvalue | 663,290,000.00 | 576,631,000.00 |
| Total | 1,042,219,240.08 | 955,560,240.08 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
| Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
| FotonMotorCo.,Ltd. | 449,516,000.00 | Non-tradingequityinvestment | ||||
| BankofJiangsu | 129,204,000.00 | Non-tradingequityinvestment | ||||
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 278,929,240.08 | Non-tradingequityinvestment |
Othernotes:
Thecorporatesecuritiesofaccommodationbusinessstillonlendingattheperiod-end:350,000sharesofFotonMotorCo.,Ltd.
13.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | 373,500,000.00 | 373,500,000.00 |
| Total | 373,500,000.00 | 373,500,000.00 |
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 | 50,916,699.87 | 50,916,699.87 |
| 2.Increasedamountoftheperiod | 1,218,237.78 | 1,218,237.78 |
| (1)Withdrawaloramortization | 1,218,237.78 | 1,218,237.78 |
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 52,134,937.65 | 52,134,937.65 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod | ||
| (1)Withdrawal | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue | ||
| 1.Endingcarryingvalue | 40,942,541.87 | 40,942,541.87 |
| 2.Beginningcarryingvalue | 42,160,779.65 | 42,160,779.65 |
15.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 683,448,533.29 | 720,061,387.76 |
| Total | 683,448,533.29 | 720,061,387.76 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 710,604,039.88 | 1,118,697,686.65 | 19,132,190.47 | 57,025,921.99 | 1,905,459,838.99 |
| 2.Increasedamountoftheperiod | 12,197,407.65 | 3,875,068.13 | 16,072,475.78 | ||
| (1)Purchase | 7,896,305.10 | 125,548.65 | 8,021,853.75 | ||
| (2)Transferfromconstructioninprogress | 4,301,102.55 | 3,749,519.48 | 8,050,622.03 | ||
| (3)Enterprisecombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 28,447,991.38 | 18,974,531.40 | 47,422,522.78 | ||
| (1)Disposalorscrap | 28,447,991.38 | 18,974,531.40 | 47,422,522.78 | ||
| 4.Endingbalance | 682,156,048.50 | 1,111,920,562.90 | 19,132,190.47 | 60,900,990.12 | 1,874,109,791.99 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 330,845,140.13 | 803,945,702.56 | 13,446,223.77 | 36,738,140.74 | 1,184,975,207.20 |
| 2.Increasedamountoftheperiod | 9,520,203.78 | 32,324,865.35 | 564,507.28 | 2,514,239.64 | 44,923,816.05 |
| (1)Withdrawal | 9,520,203.78 | 32,324,865.35 | 564,507.28 | 2,514,239.64 | 44,923,816.05 |
| 3.Decreasedamountoftheperiod | 21,071,383.95 | 18,589,624.63 | 39,661,008.58 | ||
| (1)Disposalorscrap | 21,071,383.95 | 18,589,624.63 | 39,661,008.58 | ||
| 4.Endingbalance | 319,293,959.96 | 817,680,943.28 | 14,010,731.05 | 39,252,380.38 | 1,190,238,014.67 |
| III.Depreciationreserves |
| 1.Beginningbalance | 423,244.03 | 423,244.03 | |||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposalorscrap | |||||
| 4.Endingbalance | 423,244.03 | 423,244.03 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 362,862,088.54 | 293,816,375.59 | 5,121,459.42 | 21,648,609.74 | 683,448,533.29 |
| 2.Beginningcarryingvalue | 379,758,899.75 | 314,328,740.06 | 5,685,966.70 | 20,287,781.25 | 720,061,387.76 |
(2)ListofTemporarilyIdleFixedAssets
Unit:RMB
| Item | Originalcarryingvalue | Accumulativedepreciation | Depreciationreserves | Carryingvalue | Note |
| Machineryequipment | 476,507.50 | 53,263.47 | 423,244.03 |
16.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 30,883,676.70 | 30,259,647.16 |
| Engineeringmaterials | 21,900.40 | 21,900.40 |
| Total | 30,905,577.10 | 30,281,547.56 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Innovationcapacityconstructionoftechnologycenter | 6,573,635.34 | 6,573,635.34 | 5,443,764.33 | 5,443,764.33 | ||
| Relocationprojectoflightengineandcasting | 10,666,094.73 | 10,666,094.73 | 11,155,119.70 | 11,155,119.70 | ||
| Equipmenttobeinstalledandpaymentforprojects | 13,643,946.63 | 13,643,946.63 | 13,660,763.13 | 13,660,763.13 | ||
| Total | 30,883,676.70 | 30,883,676.70 | 30,259,647.16 | 30,259,647.16 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| Innovationcapacityconstructionoftechnology | 96,066,200.00 | 5,443,764.33 | 1,458,004.06 | 328,133.05 | 6,573,635.34 | 7.42% | Uncompleted | Self-raisedandraisedfunds |
| center | ||||||||||
| Relocationprojectoflightengineandcasting | 474,706,000.00 | 11,155,119.70 | 5,879,876.03 | 6,596,305.10 | 10,438,690.63 | 80.35% | Uncompleted | Self-raisedandraisedfunds | ||
| Total | 570,772,200.00 | 16,598,884.03 | 7,337,880.09 | 6,924,438.15 | 17,012,325.97 |
(3)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Engineeringmaterials | 21,900.40 | 21,900.40 | 21,900.40 | 21,900.40 | ||
| Total | 21,900.40 | 21,900.40 | 21,900.40 | 21,900.40 | ||
17.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 214,187,775.71 | 17,847,202.14 | 5,538,000.00 | 1,650,973.47 | 239,223,951.32 |
| 2.Increasedamountoftheperiod | |||||
| (1)Purchase | |||||
| (2)InternalR&D |
| (3)Businesscombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 9,000,000.00 | 9,000,000.00 | |||
| (1)Disposal | 9,000,000.00 | 9,000,000.00 | |||
| 4.Endingbalance | 205,187,775.71 | 17,847,202.14 | 5,538,000.00 | 1,650,973.47 | 230,223,951.32 |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 63,832,525.74 | 14,396,059.28 | 3,246,750.17 | 356,398.60 | 81,831,733.79 |
| 2.Increasedamountoftheperiod | 2,149,063.08 | 700,324.52 | 275,858.52 | 83,520.96 | 3,208,767.08 |
| (1)Withdrawal | 2,149,063.08 | 700,324.52 | 275,858.52 | 83,520.96 | 3,208,767.08 |
| 3.Decreasedamountoftheperiod | 4,575,000.00 | 4,575,000.00 | |||
| (1)Disposal | 4,575,000.00 | 4,575,000.00 | |||
| 4.Endingbalance | 61,406,588.82 | 15,096,383.80 | 3,522,608.69 | 439,919.56 | 80,465,500.87 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 143,781,186.89 | 2,750,818.34 | 2,015,391.31 | 1,211,053.91 | 149,758,450.45 |
| 2.Beginningcarryingvalue | 150,355,249.97 | 3,451,142.87 | 2,291,249.83 | 1,294,574.87 | 157,392,217.54 |
18.Long-termPrepaidExpenses
Unit:RMB
| Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
| Trademark | 201,970.32 | 38,985.00 | 11,296.71 | 229,658.61 |
| renewalfee | |||||
| ElectricityOutsideLineAccessProject | 3,078,000.00 | 162,000.00 | 2,916,000.00 | ||
| Total | 3,279,970.32 | 38,985.00 | 173,296.71 | 3,145,658.61 |
19.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Deductibleloss | 18,390,162.07 | 3,045,579.73 | 149,230,051.55 | 24,713,867.00 |
| Baddebtprovision | 7,005,141.95 | 1,070,844.10 | 6,853,948.19 | 1,048,165.04 |
| Inventoryfallingpricereserves | 2,916,352.63 | 437,452.89 | 2,633,715.26 | 395,057.29 |
| Impairmentoffixedassets | 423,244.03 | 63,486.60 | 423,244.03 | 63,486.60 |
| Total | 28,734,900.68 | 4,617,363.32 | 159,140,959.03 | 26,220,575.93 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 5,677,718.36 | 851,657.75 | 5,677,718.36 | 851,657.75 |
| Changesinfairvalue | 1,156,017,272.47 | 177,990,367.23 | 1,039,472,114.80 | 160,508,593.58 |
| Total | 1,161,694,990.83 | 178,842,024.98 | 1,045,149,833.16 | 161,360,251.33 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Deductibleloss | 22,257,409.96 | 22,257,409.96 |
| Baddebtprovision | 191,557,099.56 | 177,160,942.15 |
| Fallingpricereservesofinventories | 37,395,165.97 | 36,829,892.48 |
| Total | 251,209,675.49 | 236,248,244.59 |
(4)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
Unit:RMB
| Years | Endingamount | Beginningamount | Note |
| 2023 | 1,146,746.13 | 1,146,746.13 | |
| 2024 | 3,605,384.25 | 3,605,384.25 | |
| 2025 | 5,250,820.81 | 5,250,820.81 | |
| 2026 | 7,372,277.94 | 7,372,277.94 | |
| 2027 | 4,882,180.83 | 4,882,180.83 | |
| Total | 22,257,409.96 | 22,257,409.96 |
20.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Advancespaymentofequipments | 1,393,241.19 | 1,393,241.19 | 670,735.93 | 670,735.93 | ||
| Total | 1,393,241.19 | 1,393,241.19 | 670,735.93 | 670,735.93 | ||
21.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageloans | 3,000,000.00 | 7,000,000.00 |
| Obligationtopaybillsdiscountedbeforematurity | 107,447,699.49 | 108,437,700.65 |
| Total | 110,447,699.49 | 115,437,700.65 |
(2)ThereWasNoShort-termBorrowingsOverduebutUnpaid.
22.NotesPayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 702,452,311.45 | 471,876,397.72 |
| Total | 702,452,311.45 | 471,876,397.72 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
23.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 647,261,475.07 | 747,010,098.88 |
| Total | 647,261,475.07 | 747,010,098.88 |
(2)SignificantAccountsPayableAgingoverOneYear
Unit:RMB
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Paymentforgoods | 52,642,097.90 | Supplierterminatescooperation,pendingpayment |
| Paymentforequipment | 6,202,576.90 | Equipmentwarranty |
| Total | 58,844,674.80 |
24.AdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Houserentcollectedinadvance | 815,054.54 | 837,425.55 |
| Total | 815,054.54 | 837,425.55 |
Therewerenosignificantadvancesfromcustomersagingoveroneyearattheendoftheperiod.
25.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Contractliabilities | 33,094,812.97 | 32,843,692.83 |
| Total | 33,094,812.97 | 32,843,692.83 |
Therewerenosignificantcontractliabilitiesagingoveroneyearattheendoftheperiod.
26.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 49,151,022.47 | 152,421,301.25 | 187,972,773.79 | 13,599,549.93 |
| II.Post-employmentbenefit-definedcontributionplans | 17,540,182.64 | 17,540,182.64 | ||
| III.Terminationbenefits | 200,000.00 | 200,000.00 | ||
| Total | 49,351,022.47 | 169,961,483.89 | 205,512,956.43 | 13,799,549.93 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 40,883,518.77 | 128,018,061.42 | 162,906,190.95 | 5,995,389.24 |
| 2.Employeewelfare | 1,592.74 | 1,188,689.39 | 1,188,689.39 | 1,592.74 |
| 3.Socialinsurance | 9,284,245.62 | 9,284,245.62 | ||
| Ofwhich:Medicalinsurancepremiums | 7,545,525.15 | 7,545,525.15 | ||
| Work-relatedinjuryinsurance | 968,016.73 | 968,016.73 | ||
| Maternityinsurance | 770,703.74 | 770,703.74 | ||
| 4.Housingfund | 10,716,609.27 | 10,716,609.27 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 8,265,910.96 | 3,213,695.55 | 3,877,038.56 | 7,602,567.95 |
| Total | 49,151,022.47 | 152,421,301.25 | 187,972,773.79 | 13,599,549.93 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 17,019,510.11 | 17,019,510.11 | ||
| 2.Unemploymentinsurance | 520,672.53 | 520,672.53 | ||
| Total | 17,540,182.64 | 17,540,182.64 |
27.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 1,651,730.27 | 2,240,512.82 |
| Corporateincometax | 490,046.14 | 1,272,876.86 |
| Personalincometax | 109,664.93 | 68,629.73 |
| Urbanmaintenanceandconstructiontax | 115,621.12 | 1,151,395.75 |
| Propertytax | 1,593,082.93 | 1,172,973.71 |
| Landusetax | 926,082.50 | 1,041,594.39 |
| Stampduty | 280,664.27 | 286,018.61 |
| EducationSurcharge | 49,551.90 | 229,345.14 |
| Comprehensivefees | 109,664.93 | 1,075,134.76 |
| Environmentalprotectiontax | 223.76 | 31,693.62 |
| Total | 5,326,332.75 | 8,570,175.39 |
28.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 158,289,378.68 | 156,155,449.10 |
| Total | 162,180,812.51 | 160,046,882.93 |
(1)DividendsPayable
Unit:RMB
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 4,678,536.54 | 4,293,474.88 |
| Intercoursefundsamongunits | 8,163,215.36 | 7,831,477.01 |
| Intercoursefundsamongindividuals | 385,683.04 | 397,761.04 |
| Salesdiscountandthreeguarantees | 128,905,093.55 | 126,787,544.75 |
| Other | 16,156,850.19 | 16,845,191.42 |
| Total | 158,289,378.68 | 156,155,449.10 |
2)SignificantOtherPayablesAgingoverOneYearThesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
29.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 412,356.65 | 806,555.29 |
| Transportationstoragefee | 698,545.06 | 597,090.12 |
| Electriccharge | 1,372,210.26 | 1,467,332.18 |
| Taxtobetransferred | 2,513,659.65 | 2,821,340.54 |
| Estimatedsharevalueaddedtax | 1,910,806.37 | 1,909,715.09 |
| Obligationtopaybillstransferredbeforematurity | 96,724,142.81 | 66,395,231.83 |
Item
| Item | Endingbalance | Beginningbalance |
| Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
| Total | 3,891,433.83 | 3,891,433.83 |
| Otherwithholdingexpenses | 4,675,214.62 | 4,648,476.11 |
| Total | 108,306,935.42 | 78,645,741.16 |
30.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentgrants | 36,205,625.94 | 1,704,864.73 | 34,500,761.21 | Governmentappropriation | |
| Total | 36,205,625.94 | 1,704,864.73 | 34,500,761.21 | -- |
Iteminvolvinggovernmentgrants:
Unit:RMB
| Item | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengines | 11,521,101.00 | 759,633.00 | 10,761,468.00 | Relatedtoassets | ||||
| Removecompensation | 17,847,790.36 | 332,986.81 | 17,514,803.55 | Relatedtoassets | ||||
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 6,836,734.58 | 612,244.92 | 6,224,489.66 | 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 | 19,795,719.80 | 19,795,719.80 | ||
| Total | 640,133,963.01 | 640,133,963.01 |
33.OtherComprehensiveIncome
Unit:RMB
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Othercomprehensive | 655,341,704.07 | 86,659,000.00 | 12,998,850.00 | 73,660,150.00 | 729,001,85 | |||
| incomethatwillnotbereclassifiedtoprofitorloss | 4.07 | ||||||
| Changesinfairvalueofotherequityinstrumentinvestment | 655,341,704.07 | 86,659,000.00 | 12,998,850.00 | 73,660,150.00 | 729,001,854.07 | ||
| Totalofothercomprehensiveincome | 655,341,704.07 | 86,659,000.00 | 12,998,850.00 | 73,660,150.00 | 729,001,854.07 |
34.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 18,848,856.75 | 4,598,473.04 | 2,420,662.71 | 21,026,667.08 |
| Total | 18,848,856.75 | 4,598,473.04 | 2,420,662.71 | 21,026,667.08 |
35.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 336,040,867.82 | 336,040,867.82 | ||
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 349,197,725.72 | 349,197,725.72 |
36.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 915,495,909.35 | 872,212,354.88 |
| Beginningbalanceofretainedearningsafteradjustments | 915,495,909.35 | 872,212,354.88 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 131,937,324.66 | -14,592,094.77 |
| Dividendsofordinarysharespayable | 7,056,925.07 | 18,348,005.18 |
| Endingretainedearnings | 1,040,376,308.94 | 839,272,254.93 |
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 | 1,333,099,509.22 | 1,156,456,220.22 | 1,161,021,786.32 | 1,038,738,676.27 |
| Otheroperations | 17,418,130.63 | 12,441,983.61 | 17,200,705.72 | 12,656,556.15 |
| Total | 1,350,517,639.85 | 1,168,898,203.83 | 1,178,222,492.04 | 1,051,395,232.42 |
Relevantinformationofrevenue:
Unit:RMB
| Categoryofcontracts | Segment1 |
| ProductTypes | |
| Ofwhich: | |
| Single-cylinderdieselengines | 607,361,121.44 |
| Multi-cylinderdieselengines | 584,029,144.61 |
| Otherproducts | 82,791,314.55 |
| Fittings | 20,819,616.14 |
| Classifiedbybusinessarea | |
| Ofwhich: | |
| Salesindomesticmarket | 1,097,487,924.55 |
| Exportsales | 235,611,584.67 |
| Total | 1,333,099,509.22 |
Informationrelatedtoperformanceobligations:none
38.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 1,006,348.45 | 812,411.02 |
| Educationsurcharge | 718,820.35 | 579,085.68 |
| Propertytax | 3,169,527.35 | 1,817,465.17 |
| Landusetax | 2,197,586.41 | 1,586,101.00 |
| Vehicleandvesselusetax | 403.52 | 201,437.50 |
| Stampduty | 628,716.88 | 207,601.82 |
| Environmenttax | 100,381.82 | 102,066.70 |
| Other | 5,470.80 | 54,256.65 |
| Total | 7,827,255.58 | 5,360,425.54 |
39.SellingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 17,034,869.46 | 16,943,256.62 |
| Officeexpenses | 3,936,262.82 | 3,724,135.21 |
| Salespromotionalexpense | 3,274,025.90 | |
| Threeguarantees | 35,094,246.66 | 20,297,149.84 |
| Other | 6,065,653.23 | 7,520,633.81 |
| Total | 62,131,032.17 | 51,759,201.38 |
40.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 28,128,076.17 | 23,311,653.61 |
| Officeexpenses | 5,597,629.95 | 4,566,775.20 |
| Depreciationandamortization | 9,181,948.43 | 4,952,365.26 |
| Safetyexpenses | 1,768,064.08 | |
| Repaircharge | 589,852.63 | 428,378.02 |
| Inventoryobsolescenceandinventoryshortage(overage) | -651,231.55 | |
| Other | 8,263,031.35 | 6,957,362.02 |
| Total | 52,877,371.06 | 40,216,534.11 |
41.DevelopmentCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 20,419,421.63 | 24,257,520.75 |
| Employeebenefits | 11,534,165.94 | 11,798,332.91 |
| Depreciationandamortization | 3,284,892.82 | 2,981,055.64 |
| Other | 600,591.03 | 1,122,878.17 |
| Total | 35,839,071.42 | 40,159,787.47 |
42.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 3,343,884.90 | 3,276,786.93 |
| Less:Interestincome | 4,264,102.18 | 6,634,812.22 |
| Netforeignexchangegainsorlosses | -4,784,425.33 | -7,111,099.45 |
| Other | 727,989.66 | -2,531,595.24 |
| Total | -4,976,652.95 | -13,000,719.98 |
43.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Governmentgrantsdirectlyrecordedintothecurrentprofitorloss | 1,594,191.79 | 1,602,830.77 |
| Governmentgrantsrelatedtodeferredincome | 1,704,864.73 |
44.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Investmentincomefromholdingoftradingfinancialassets | 343,730.00 | |
| Investmentincomefromdisposaloftradingfinancialassets | 2,430.18 | 364,131.30 |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 9,360,000.00 | |
| Interestfromholdingofinvestmentsindebtobligations | 705,680.77 | |
| Incomefromrefinancingoperations | 14,396.97 | 60,799.49 |
| Investmentincomefromfinancialproducts | 4,471,297.06 | 4,297,768.75 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -2,310,613.28 | -2,338,416.66 |
| Total | 3,226,921.70 | 11,744,282.88 |
45.GainonChangesinFairValue
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Held-for-tradingfinancialassets | 19,360,455.86 | -30,488,388.88 |
| Total | 19,360,455.86 | -30,488,388.88 |
46.CreditImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofotherreceivables | -1,750,745.09 | 236,946.29 |
| Baddebtlossofaccountsreceivable | -12,796,606.08 | -12,169,772.95 |
| Total | -14,547,351.17 | -11,932,826.66 |
47.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Lossoninventoryvaluationandcontractperformancecost | -565,273.49 | 4,342,775.64 |
| Total | -565,273.49 | 4,342,775.64 |
48.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Disposalincomeoffixedassets | 105,395,693.25 | -361,395.36 |
49.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurring |
| profitorloss | |||
| Negativegoodwillfromcombinationnotunderthesamecontrol | 1,798,981.78 | ||
| Other | 495,538.97 | 550,915.40 | 495,538.97 |
| Total | 495,538.97 | 2,349,897.18 | 495,538.97 |
50.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Qualitycompensation | 144,428.82 | 144,428.82 | |
| Compensationmatters | 731,752.92 | 731,752.92 | |
| Other | 421,166.39 | 392,257.24 | 421,166.39 |
| Total | 1,297,348.13 | 392,257.24 | 1,297,348.13 |
51.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 2,460,114.33 | 1,599,680.00 |
| Deferredincometaxexpense | 4,729,214.00 | -7,805,728.88 |
| Total | 7,189,328.33 | -6,206,048.88 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | 143,289,052.25 |
| Incometaxexpensescalculatedbasedonstatutory/applicabletaxrates | 21,493,357.84 |
| Theimpactofdeductiblelossesondeferredincometaxassetsrecognizedinthepriorperiodofuse | -21,668,287.27 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 7,364,257.76 |
| Incometaxexpense | 7,189,328.33 |
52.OtherComprehensiveIncomeSeeNote33fordetails.
53.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
(2)CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingandadministrativeexpensepaidincash | 79,187,465.71 | 75,307,038.72 |
| Handlingcharges | 1,125,365.36 | 1,058,635.32 |
| Other | 658,923.36 | 749,863.50 |
| Othertransactions | 149,835.21 | 67,256.65 |
| Total | 81,121,589.64 | 77,182,794.19 |
(3)CashGeneratedfromOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Depositofconstructionunit | 169,856.31 | |
| Total | 169,856.31 |
(4)CashGeneratedfromOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Discountofunduebankacceptancebillswithlowcreditrating | 49,395,924.99 |
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 1,594,191.79 | 1,602,830.77 |
| Otherintercoursesincash | 5,293,371.43 | 6,000,698.61 |
| Interestincome | 4,264,102.18 | 7,872,212.72 |
| Other | 372,352.32 | 392,565.39 |
| Total | 11,524,017.72 | 15,868,307.49 |
| Total | 49,395,924.99 |
(5)CashUsedinOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Discountinterestfrombankacceptancebills | 2,604,075.01 | |
| Total | 2,604,075.01 |
54.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | 136,099,723.92 | -14,597,001.69 |
| Add:Provisionforimpairmentofassets | 15,112,624.66 | -8,871,223.50 |
| Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 44,923,816.05 | 40,934,595.60 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 3,208,767.08 | 3,076,523.63 |
| Amortizationoflong-termdeferredexpenses | 168,946.50 | 1,956.06 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -105,395,693.25 | 361,395.36 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | ||
| Lossesonthechangesinfairvalue(gainsby“-”) | -19,360,455.86 | 30,488,388.88 |
| Financialexpenses(gainsby“-”) | -4,976,652.95 | -13,000,719.98 |
| Investmentlosses(gainsby“-”) | -3,226,921.70 | -11,744,282.88 |
| Decreaseindeferredincometaxassets(increaseby“-”) | 21,603,212.61 | -11,774.06 |
| Increaseindeferredincometaxliabilities(decreaseby“-”) | -17,481,773.65 | -15,920,828.48 |
| Decreaseininventory(increaseby“-”) | 14,472,740.38 | 117,904,290.23 |
| Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -269,061,905.84 | -241,738,053.67 |
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 79,116,755.30 | 55,684,539.07 |
| Other | -16,868,305.69 | |
| Netcashflowsgeneratedfromoperatingactivities | -104,796,816.75 | -74,300,501.12 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | ||
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | ||
| Endingbalanceofcash | 651,307,581.82 | 440,638,879.34 |
| Less:Beginningbalanceofcash | 810,350,966.05 | 573,623,529.10 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -159,043,384.23 | -132,984,649.76 |
(2)CashandCashEquivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 651,307,581.82 | 810,350,966.05 |
| Including:Cashonhand | 230,083.56 | 251,965.06 |
| Bankdepositondemand | 648,401,119.95 | 806,914,999.19 |
| Othermonetaryassetsondemand | 2,676,378.31 | 3,184,001.80 |
| III.Endingbalanceofcashandcashequivalents | 651,307,581.82 | 810,350,966.05 |
55.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Endingcarryingvalue | Reasonforrestriction |
| Monetaryassets | 173,206,532.10 | Ascashdepositforbankacceptancebillandforenvironment |
| Housesandbuildings | 1,422,559.69 | Mortgagedforborrowingsfrombanks |
| Landuseright | 863,218.81 | Mortgagedforborrowingsfrombanks |
| Machineryequipment | 25,771,609.33 | Mortgagedforborrowingsfrombanks |
| Obligationtopaybillsdiscountedbeforematurity | 110,000,000.00 | |
| Obligationtopaybillstransferredbeforematurity | 103,721,703.95 |
| Total | 414,985,623.88 |
56.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | 73,299,699.59 | ||
| Ofwhich:USD | 10,103,155.25 | 7.2258 | 73,003,379.21 |
| HKD | 321,388.70 | 0.9220 | 296,320.38 |
| Accountsreceivable | 78,604,894.44 | ||
| Ofwhich:USD | 10,878,365.64 | 7.2258 | 78,604,894.44 |
| Accountspayable | 2,186.53 | ||
| Ofwhich:USD | 302.60 | 7.2258 | 2,186.53 |
| Contractliabilities | 5,646,020.60 | ||
| Ofwhich:USD | 781,369.62 | 7.2258 | 5,646,020.60 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
57.GovernmentGrants
(1)BasicInformationonGovernmentGrants
Unit:RMB
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Subsidiesforstabilizingandincreasingjobpositionsandretainingworkers | 162,791.79 | Otherincome | 162,791.79 |
| Subsidiesforindustry-university-researchcooperation | 30,000.00 | Otherincome | 30,000.00 |
| IncentiveformunicipaltechnologytransferinChangzhou | 400,000.00 | Otherincome | 400,000.00 |
| SpecialfundsforinnovativedevelopmentinChangzhou | 333,000.00 | Otherincome | 333,000.00 |
| Incentivesandsubsidiesforearlierphase-outandscrappingofhigh-emissionoldcarsinChangzhou | 19,500.00 | Otherincome | 19,500.00 |
| Subsidiesforexport | 628,900.00 | Otherincome | 628,900.00 |
| Jobskillssubsidies | 20,000.00 | Otherincome | 20,000.00 |
| Demolitioncompensation(replacingZouVillagewithHehaiRoad) | 13,344,397.90 | Deferredincome | 133,666.74 |
| Demolitioncompensation-mainworkshopsinthebaseinHehaiRoad | 11,864,289.02 | Deferredincome | 199,320.07 |
| Thenationalmajorspecialproject-theflexibleprocessingproductionlinefordieselenginecylinderblocks | 13,800,000.00 | Deferredincome | 759,633.00 |
| NationalIII/IVAppropriationfortheresearchanddevelopmentandindustrializationofstandardhigh-horsepowerhigh-efficiencyagriculturaldieselengine | 10,000,000.00 | Deferredincome | 612,244.92 |
(2)ReturnofGovernmentGrants
□Applicable√NotapplicableVIII.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
| Name | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | |||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Changzhou | Changzhou | Industry | 99.00% | 1.00% | Set-up |
| ChangzhouHorizonInvestmentCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Changzhou | Changzhou | Industry | 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 |
Note:TheCompanyholds41.5%sharesofZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.asthelargestshareholderofit.Othersharesareemployeesharesandnon-employeeshares,relativelydispersed.Noothershareholderhasahighershareholdingratiothatisclosetothatoftheactualcontroller.TheBoardofDirectorsofZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.consistsofsevenmembers,ofwhichfivemembersincludingtheChairmanoftheBoardaresentbytheCompany.Thus,theCompanyistheactualcontrollerofZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,whichformsthemergeconditions.
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 85,187.53 | 19,790,830.78 | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 58.50% | 4,077,211.73 | 56,835,741.15 |
Holdingproportionofnon-controllinginterestsinsubsidiarydifferentfromvotingproportion:Notapplicable
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 48,074,711.77 | 22,775,552.20 | 70,850,263.97 | 21,373,187.02 | 21,373,187.02 | 47,133,617.16 | 23,228,110.09 | 70,361,727.25 | 21,097,619.13 | 21,097,619.13 | ||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 88,124,204.01 | 27,200,773.86 | 115,324,977.87 | 17,836,297.37 | 333,567.42 | 18,169,864.79 | 82,697,983.58 | 28,045,494.39 | 110,743,477.97 | 20,235,256.17 | 322,701.42 | 20,557,957.59 |
Unit:RMB
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 26,190,043.15 | 212,968.83 | 212,968.83 | -8,525,646.36 | 17,154,269.32 | -306,598.18 | -306,598.18 | -3,005,981.47 |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 38,098,312.48 | 6,969,592.70 | 6,969,592.70 | 7,732,566.01 | 4,813,008.16 | 206,678.96 | 206,678.96 | 6,994,726.52 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018and3December2020,newpartnerswererespectivelyadded.On29December2022,theCompanytransferredthepartnershipshares.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhu,TongYinxin,AnhuiHaiyunzhouEquityInvestmentPartnershipEnterprise(Limited),ShenzhenJiaxinNo.1VentureCapitalPartnership(LimitedPartnership)andZhongWende.InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.
IX.TheRiskRelatedtoFinancialInstruments
ThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRiskCreditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.(II)LiquidityRiskLiquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.(III)MarketRiskMarketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,includingforeignexchangeraterisk,interestraterisk.
1.InterestRateRiskInterestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRiskForeignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.X.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 111,116,698.21 | 250,354,111.11 | 361,470,809.32 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 111,116,698.21 | 250,354,111.11 | 361,470,809.32 | |
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 111,116,698.21 | 111,116,698.21 | ||
| (3)Derivativefinancialassets | ||||
| Wealthmanagementinvestments | 250,354,111.11 | 250,354,111.11 | ||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherinvestmentsindebtobligations | ||||
| (III)Otherequityinstrumentinvestment | 663,290,000.00 | 378,929,240.08 | 1,042,219,240.08 | |
| (IV)Investmentproperty | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuserightheldandplannedtobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Accountsreceivablefinancing | 73,649,132.14 | 73,649,132.14 | ||
| Othernon-currentfinancialassets | 373,500,000.00 | 373,500,000.00 | ||
| Totalassetsconsistentlymeasuredbyfairvalue | 774,406,698.21 | 250,354,111.11 | 826,078,372.22 | 1,850,839,181.54 |
| (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’equityduetotheneedforcapitalincreaseandshareexpansionin2022,andconfirmedthepremiumrateofcapitalincreasebasedontheappreciationrateoftheequityvalue.Thecompany’snewinvestorssignedtheinvestmentagreementsrespectively29August2022.Therefore,thefairvalueoftheequityinvestmenthadbeenadjustedandconfirmedaccordinglybasedonthepremiumrateofthelatestfinancing.
(3)Amongotherequityinvestmentinstruments,thetotalinvestmentinChengduChangwanDieselEngineDistributionCo.,Ltd.,ChongqingWanzhouChangwanDieselEnginePartsCo.,Ltd.,ChangzhouEconomicandTechnologicalDevelopmentCompany,ChangzhouTractorCompany,ChangzhouEconomicCommissionIndustrialCapitalMutualAidAssociation,BeijingEngineeringMachineryAgriculturalMachineryCompanywas
RMB1.21million,andthefairvaluewasRMB0.00duetothedifficultyinrecoveringtheinvestment.SinceitsestablishmentinOctober2017,ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)hasincreasedtheequityofpartnersattheendoftheyearduetothechangeinfairvalueoftheequityheldbyit.Inaddition,thecompany'sbusinessenvironment,operatingconditions,andfinancialstatushadnotundergonemajorchanges.Therefore,thecompanydetermineditsfairvalueonthebasisofthenetbookassetsofthepartnershipattheendoftheperiod.
5.SensitivenessAnalysisonUnobservableParametersandAdjustmentInformationbetweenBeginningandEndingCarryingValueofConsistentFairValueMeasurementItemsatLevel3Notapplicable
6.ExplaintheReasonforConversionandtheGoverningPolicywhentheConversionHappensifConversionHappensamongConsistentFairValueMeasurementItemsatDifferentLevelsNotapplicable
7.ChangesintheValuationTechniqueintheCurrentPeriodandtheReasonforSuchChangesNotapplicable
8.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValueThefinancialassetsandliabilitiesmeasuredatamortizationcostmainlyincludenotesreceivable,accountsreceivable,otherreceivables,short-termborrowings,accountspayable,otherpayables,etc.Thedifferencebetweenthecarryingvalueandfairvalueforfinancialassetsandliabilitiesnotmeasuredatfairvalueissmall.
9.OtherDuringtheReportingPeriod,therewasnoconversionbetweenLevel1andLevel2,norwasthereanytransfertoorfromLevel3forthefairvaluemeasurementoftheCompany'sfinancialassetsandfinancialliabilities.XI.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
| ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc. | RMB1.2billion | 32.26% | 32.26% |
Notes: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-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteVIIIfordetails.
3.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
XII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof30June2023,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDateNone
(2)InDespiteofnoSignificantContingencytoDisclose,theCompanyShallAlsoMakeRelevantStatementsTherewasnosignificantcontingencyintheCompany.XIII.EventsafterBalanceSheetDate
1.NotestoOtherEventsafterBalanceSheetDateTherewasnoothereventafterbalancesheetdate.
XIV.OtherSignificantEvents
1.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegmentDuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommonmanagement,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
2.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-makingNone
XV.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 | 27,364,067.34 | 2.72% | 21,758,623.26 | 79.52% | 5,605,444.08 | 27,364,067.34 | 6.22% | 21,607,429.50 | 78.96% | 5,756,637.84 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 977,509,255.46 | 97.28% | 101,795,620.16 | 10.41% | 875,713,635.30 | 412,769,158.39 | 93.78% | 89,464,855.73 | 21.67% | 323,304,302.66 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 977,509,255.46 | 97.28% | 101,795,620.16 | 10.41% | 875,713,635.30 | 412,769,158.39 | 93.78% | 89,464,855.73 | 21.67% | 323,304,302.66 |
| Total | 1,004,873,322.80 | 100.00% | 123,554,243.42 | 12.30% | 881,319,079.38 | 440,133,225.73 | 100.00% | 111,072,285.23 | 25.24% | 329,060,940.50 |
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 | 1,731,493.71 | 1,731,493.71 | 100.00% | Difficulttorecover |
| Customer8 | 1,511,937.64 | 755,968.82 | 50.00% | Expectedtodifficultlyrecover |
| Customer9 | 3,329,074.84 | 720,031.71 | 21.63% | Expectedtodifficultlyrecover |
| Total | 25,175,616.37 | 19,697,545.94 |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 859,890,514.81 | 17,197,810.30 | 2.00% |
| 1to2years | 26,758,256.03 | 1,337,912.80 | 5.00% |
| 2to3years | 7,082,680.52 | 1,062,402.08 | 15.00% |
| 3to4years | 1,750,847.90 | 525,254.38 | 30.00% |
| 4to5years | 886,788.94 | 532,073.36 | 60.00% |
| Over5years | 81,140,167.20 | 81,140,167.24 | 100.00% |
| Total | 977,509,255.46 | 101,795,620.16 | |
Notestothebasisforthedeterminationofthegroups:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsoccurredactually,amongwhichtheaccountsoccurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 863,346,963.30 |
| 1to2years | 27,300,968.69 |
| 2to3years | 7,082,680.52 |
| Over3years | 107,142,710.29 |
| 3to4years | 3,838,737.01 |
| 4to5years | 2,836,538.50 |
| Over5years | 100,467,434.78 |
| Total | 1,004,873,322.80 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 21,607,429.50 | 151,193.76 | 21,758,623.26 | |||
| Baddebtprovisionwithdrawnbygroup | 89,464,855.73 | 12,330,764.43 | 101,795,620.16 | |||
| Total | 111,072,285.23 | 12,481,958.19 | 123,554,243.42 | |||
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)TherewerenoaccountsreceivablewithactualverificationduringtheReportingPeriod.
(4)Top5oftheEndingBalanceofAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 552,639,182.57 | 55.00% | 12,458,137.94 |
| Customer2 | 84,694,433.47 | 8.43% | 1,693,888.67 |
| Customer3 | 41,213,013.00 | 4.10% | 824,260.26 |
| Customer4 | 40,039,625.72 | 3.98% | 800,792.51 |
| Customer5 | 33,964,600.00 | 3.38% | 679,292.00 |
| Total | 752,550,854.76 | 74.89% |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 360,599,343.16 | 179,596,495.57 |
| Total | 360,599,343.16 | 179,596,495.57 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| Collectinglandcollectionandstoragefundsonbehalf | 47,000,000.00 | |
| CashdepositandMargin | 1,300.00 | 1,300.00 |
| Intercoursefundsamongunits | 347,191,045.14 | 214,624,107.53 |
| Pettycashandborrowingsbyemployees | 642,563.68 | 671,817.84 |
| Other | 13,593,526.32 | 13,635,256.64 |
| Total | 408,428,435.14 | 228,932,482.01 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2023 | 26,186.99 | 209,876.70 | 49,099,922.75 | 49,335,986.44 |
| Balanceof1January2023intheCurrentPeriod | ||||
| WithdrawaloftheCurrentPeriod | 986,089.16 | 986,089.16 | ||
| ReversaloftheCurrentPeriod | 2,492,983.62 | 2,492,983.62 | ||
| Balanceof30June2023 | 1,012,276.15 | 209,876.70 | 46,606,939.13 | 47,829,091.98 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√Notapplicable
Disclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 361,587,084.62 |
| 1to2years | 17,302,125.74 |
| 2to3years | 161,608.32 |
| Over3years | 29,377,616.46 |
| 3to4years | 440,952.49 |
| 4to5years | 389,176.36 |
| Over5years | 28,547,487.61 |
| Total | 408,428,435.14 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 25,757,409.37 | 2,492,983.62 | 23,264,425.75 | |||
| Baddebtprovisionwithdrawnbygroup | 23,578,577.07 | 986,089.16 | 24,564,666.23 | |||
| Total | 49,335,986.44 | 986,089.16 | 2,492,983.62 | 47,829,091.98 | ||
4)ParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod:None.
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| JiangsuChangchaiMachineryManufacturingCo.,Ltd. | Intercoursefunds | 270,624,584.71 | 1-2years | 65.82% | —— |
| ChangzhouZhonglouDistrictHousingandUrbanRuralDevelopmentBureau | Intercoursefunds | 47,000,000.00 | Within1year | 11.43% | 940,000.00 |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 17,728,140.31 | Within1year | 4.31% | 17,728,140.31 |
| ChangzhouChangniuMachineryCo.,Ltd. | Intercoursefunds | 9,000,000.00 | 1-2years | 2.19% | —— |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 0.72% | 2,940,000.00 |
| Total | 347,292,725.02 | 84.47% | 21,608,140.31 |
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 | 576,273,530.03 | 7,000,000.00 | 569,273,530.03 |
| 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 | 576,317,712.53 | 7,044,182.50 | 569,273,530.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investee | Beginningbalance(carrying | Increase/decrease | Endingbalance(carrying | Endingbalanceofdepreciatio | |||
| Additional | Reduced | Withdrawa | Other | ||||
| value) | investment | investment | lofdepreciationreserve | value) | nreserve | ||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | |||||
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | |||||
| ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | 40,000,000.00 | |||||
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 0.00 | 0.00 | 7,000,000.00 | ||||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||||
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | 300,000,000.00 | |||||
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
| Zhenjiang | 33,520,800 | 33,520,800 |
| SiyangDieselEngineManufacturingCo.,Ltd. | .00 | .00 | ||
| Total | 569,273,530.03 | 569,273,530.03 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Other | ||||
| II.Associatedenterprises | |||||||||||
| BeijingTsinghuaXingyeIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 0.00 | 44,182.50 | ||||||||
| Subtotal | 0.00 | 0.00 | 44,182.50 | ||||||||
| Total | 0.00 | 0.00 | 44,182.50 | ||||||||
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 1,229,806,219.61 | 1,080,327,550.17 | 1,063,899,643.27 | 960,873,534.45 |
| Otheroperations | 15,360,013.94 | 12,076,793.29 | 14,401,885.93 | 10,099,571.18 |
| Total | 1,245,166,233.55 | 1,092,404,343.46 | 1,078,301,529.20 | 970,973,105.63 |
Informationonrevenue:
Unit:RMB
| Categoryofcontracts | Segment1 |
| ProductTypes | |
| Ofwhich: | |
| Single-cylinderdieselengines | 607,361,121.44 |
| Multi-cylinderdieselengines | 584,029,144.61 |
| Otherproducts | 21,859,902.74 |
| Fittings | 16,556,050.82 |
| Classifiedbybusinessarea | |
| Ofwhich: | |
| Salesindomesticmarket | 1,046,596,379.76 |
| Exportsales | 183,209,839.85 |
| Total | 1,229,806,219.61 |
Informationrelatedtoperformanceobligations:none
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 4,322,777.77 | 4,099,001.28 |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 9,360,000.00 | |
| Interestfromholdingofinvestmentsindebtobligations | 705,680.77 | |
| Incomefromrefinancingoperations | 14,396.97 | 60,799.49 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -2,310,613.28 | -2,338,416.66 |
| Total | 2,732,242.23 | 11,181,384.11 |
XVI.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets | 105,395,693.25 | Duetotheexpropriationofhousesonthestate-ownedlandofChangzhouWuxingBranchduringtheReportingPeriod |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 3,299,056.52 | |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andavailable-for-salefinancialassets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 22,587,377.56 | IncreaseinthefairvalueofthestocksofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.,KailongHighTechnologyCo.,Ltd.,GuilinStarsScienceandTechnologyCo.,Ltd.andHenanLantianGasCo.,Ltd.heldbytheCompany’swholly-ownedsubsidiaryHorizonInvestmentduringtheReportingPeriod |
| Othernon-operatingincomeandexpensesotherthantheabove | -801,809.16 | |
| Less:Incometaxeffects | 4,621,569.20 | |
| Non-controllinginterestseffects | -253,031.71 | |
| Total | 126,111,780.68 | -- |
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 | 3.93% | 0.1870 | 0.1870 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 0.17% | 0.0083 | 0.0083 |
3.DifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards
(1)DifferencesofNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderInternationalandChineseAccountingStandards
□Applicable?Notapplicable
(2)DifferencesofNetprofitandNetassetsDisclosedinFinancialReportsPreparedunderOverseasandChineseAccountingStandards
□Applicable?Notapplicable
TheBoardofDirectorsChangchaiCompany,Limited
22August2023