CHANGCHAICOMPANY,LIMITED
ANNUALREPORT2019
April2020
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 3
PartIICorporateInformationandKeyFinancialInformation ...... 5
PartIIIBusinessSummary ...... 10
PartIVOperatingPerformanceDiscussionandAnalysis ...... 13
PartVSignificantEvents ...... 34
PartVIShareChangesandShareholderInformation ...... 48
PartVIIPreferredShares ...... 54
PartVIIIConvertibleCorporateBonds ...... 55
PartIXDirectors,Supervisors,SeniorManagementandStaff ...... 56
PartXCorporateGovernance ...... 63
PartXICorporateBonds ...... 71
PartXIIFinancialStatements ...... 72
PartXIIIDocumentsAvailableforReference ...... 215
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.ShiXinkun,theCompany’slegalrepresentative,ZhangXin,theCompany’sGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks.
TheCompanyhasdescribedindetailtherisksitmightfacein“PartIVOperatingPerformanceDiscussionandAnalysis”,IX,“4.PossibleRisksinFuture”herein.
TheBoardhasapprovedafinaldividendplanasfollows:basedonthe561,374,326shares,theCompanyhasnofinaldividendplan,eitherintheformofcashorstock.
ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
Definitions
| Term | Definition |
| The“Company”,“Changchai”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HoushengInvestment | ChangzhouHoushengInvestmentCo.,Ltd. |
| HoushengAgriculturalEquipment | ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2019to31December2019 |
PartIICorporateInformationandKeyFinancialInformationICorporateInformation
| Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr. | 苏常柴 | ||
| CompanynameinEnglish | CHANGCHAICOMPANY,LIMITED | ||
| Abbr. | CHANGCAHICO.,LTD. | ||
| Legalrepresentative | ShiXinkun | ||
| Registeredaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
| Zipcode | 213002 | ||
| Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
| Zipcode | 213002 | ||
| Companywebsite | http://www.changchai.com.cn | ||
| Emailaddress | cctqm@public.cz.js.cn | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | HeJianjiang | |
| Address | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | |
| Tel. | （86）519-68683155 | |
| Fax | （86）519-86630954 | |
| Emailaddress | cchjj@changchai.com |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
| NewspapersdesignatedbytheCompanyforinformationdisclosure | SecuritiesTimes,TaKungPao(HK) |
| WebsitedesignatedbyCSRCforpublicationofthisReport | http://www.cninfo.com.cn |
| PlacewherethisReportislodged | BoardSecretariatoftheCompanyandtheShenzhenStockExchange |
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 91320400134792410W |
| ChangetoprincipalactivityoftheCompanysincegoingpublic | Nochange |
| Everychangeofcontrollingshareholdersinceincorporation | On22November2018,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmenttransferreditsentireholdingsof170,845,236sharesintheCompany(astakeof30.43%)toChangzhouInvestmentGroupCo.,Ltd.fornocompensation.Thesesharesarenon-restrictedpublicshares. |
VOtherInformation
TheindependentauditfirmhiredbytheCompany:
| Name | GongzhengTianyeCertifiedPublicAccountantsLLP |
| Officeaddress | YingtongCommerceBuilding,Changzhou,Jiangsu,China |
| Accountantswritingsignatures | DaiWeizhong,XuWenxiang |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
| 2019 | 2018 | 2019-over-2018change(%) | 2017 | |
| Operatingrevenue(RMB) | 2,040,133,717.30 | 2,132,902,718.60 | -4.35% | 2,423,058,958.29 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 24,934,586.11 | 62,021,374.04 | -59.80% | 46,431,302.73 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 14,376,783.21 | -43,333,196.13 | - | 18,818,435.16 |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -20,542,857.52 | 273,819,526.89 | - | -121,669,279.39 |
| Basicearningspershare(RMB/share) | 0.04 | 0.11 | -63.64% | 0.08 |
| Dilutedearningspershare(RMB/share) | 0.04 | 0.11 | -63.64% | 0.08 |
| Weightedaveragereturnonequity(%) | 1.20% | 2.84% | -1.64% | 2.00% |
| 31December2019 | 31December2018 | Changeof31December2019over31December2018(%) | 31December2017 | |
| Totalassets(RMB) | 3,484,975,990.48 | 3,542,019,195.75 | -1.61% | 3,722,905,285.05 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 2,109,239,597.94 | 2,043,308,026.74 | 3.23% | 2,246,896,857.86 |
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
3.ReasonsforAccountingDataDifferencesAbove
□Applicable√Notapplicable
VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 557,670,611.48 | 558,159,234.11 | 460,579,449.28 | 463,724,422.4 |
| Netprofitattributabletothelistedcompany’sshareholders | 2,518,025.10 | 16,539,999.97 | 950,668.62 | 4,925,892.42 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 1,083,678.62 | 13,143,476.97 | 197,704.53 | -48,076.91 |
| Netcashgeneratedfrom/usedinoperatingactivities | -63,832,631.41 | -90,395,073.36 | -23,645,425.75 | 157,330,273.00 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√No
IXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | 2019 | 2018 | 2017 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 1,914,137.47 | -265,966.68 | 1,005,800.62 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 5,312,295.51 | 6,291,685.65 | 8,456,560.85 | |
| Capitaloccupationchargesonnon-financialenterprisesthatarechargedtocurrentprofitorloss | 536,504.84 | 938,737.87 | 1,200,592.21 |
| GainequaltotheamountbywhichinvestmentcostsfortheCompanytoobtainsubsidiaries,associatesandjointventuresarelowerthantheCompany’senjoyablefairvalueofidentifiablenetassetsofinvesteeswhenmakinginvestments | 19,924,486.12 | |||
| Gainorlossonfair-valuechangesinheld-for-tradingandderivativefinancialassetsandliabilities&incomefromdisposalofheld-for-tradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -49,255.00 | 105,672,874.83 | 654,862.68 | |
| Non-operatingincomeandexpenseotherthantheabove | 372,534.93 | 1,392,895.84 | -4,441,830.05 | |
| Gainorlossonre-measurementbythefairvalueofequityinterestsinjointventuresbeforeacquisitiondatesinbusinesscombinationsnotundercommoncontrol | 1,751,203.43 | |||
| Reversedportionsofimpairmentallowancesforentrustmentloanswhicharetestedindividuallyforimpairment | 4,000,000.00 | 10,000,000.00 | ||
| Less:Incometaxeffects | 1,520,857.98 | 18,670,371.98 | 951,629.77 | |
| Non-controllinginterestseffects(netoftax) | 7,556.87 | 5,285.36 | -12,821.48 | |
| Total | 10,557,802.90 | 105,354,570.17 | 27,612,867.57 | -- |
ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod
Asamanufacturer,wespecializeinthemanufactureandsaleofdieselengines,dieselenginefittingsandcastings,gasolineengines,gasolineenginefittings,rotovators,walkingtractors,moldsandjigsaswellastheassemblyandsaleofdieselengineandgasolineenginesupportingsets.Wemainlymanufactureandsellsmallandmedium-sizedsingle-cylinderandmulti-cylinderdieselenginesunderthebrandof“Changchai”,whichareoftenusedintractors,combine-harvesters,lightcommercialvehicles,agricultureequipment,small-sizedengineeringmachinery,generatorsets,shipmachines,etc.
IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
| Majorassets | Mainreasonforsignificantchanges |
| Equityassets | Duringthereportingperiod,thecompanysetupawholly-ownedsubsidiary,JiangsuChangchaiMachineryCo.,Ltd.,andinvestedinJiangsuHoushengNewEnergyTechnologyCo.,Ltd. |
| Othercurrentassets | TheendingamountstoodatRMB6,353,920.33,down81.51%fromthebeginningamount,primarilydrivenbyadecreaseinVATwithheld. |
2.MajorAssetsOverseas
□Applicable√NotapplicableIIICoreCompetitivenessAnalysis
1.AdvantagesinBrand
Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,ISO/TS16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorably
rankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe“JiangsuIndependentIndustriesBrandTop50”forfouryearsinarow.Also,ithasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2019,theCompanyonceagainwasgiventhetitleof“Top50IndustrialBrandsofJiangsuProvince”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“NationalModelEnterpriseforTrustworthyProductandServiceQuality”and“China’sTop500MostValuableBrands”,amongothers.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.Its4G33TCdieselenginehasbeenincludedintheprovincialcatalogofkeynewtechnologiesandproductstobepromoted.Its4G33TCand3M78dieselengineshavebeenrecognizedas“high-techproducts”attheprovinciallevel.The4G33V16Multi-CylinderDieselEnginewontheChinaAgriculturalMachineryIndustryAnnualProductInnovationAward,TheSpeedRegulatorforSingle-CylinderDieselEngines—oneoftheCompany’spatentedtechnologies,wontheChinaPatentExcellenceAward,andthreeotherproductsincludingtheH16DieselEnginewererecognizedas“High-TechProduct”atthemunicipallevel.DuringtheReportingPeriod,theCompanyfiledfor9patentsandwasgranted10patents.Currently,theCompanyhasatotalof138patentsgrantedbyauthoritiesathomeandabroad,including12inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,27salesservicecentersandover800servicestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompany
isabletoprovidehighquality,efficientandtimelyservicesforcustomers.
PartIVOperatingPerformanceDiscussionandAnalysis
IOverviewIn2019,China’seconomicsituationwasextremelysevere,withmuchgreaterrisksandchallengesathomeandabroad.Theagriculturalmachinerymarketremainedunderdepressionduetomultiplefactorssuchaschangestotheagriculturalsubsidypolicy,stricteremissionregulationsfordieselengines,morestringentinspectionofsafetyandenvironmentalprotection,fluctuatingpricesofrawmaterials,weakerpurchasingpoweroffarmersandtheChina-U.S.tradewar.Amidthedeepchangeintheagriculturalmachineryindustryandtheharshmarketenvironment,theCompanyformulatedeffectiveoperatingstrategies,refinedtheproductmix,workedonsegmentmarkets,strengthenedqualitycontrolandenhancedinternalmanagement.Asaresult,despiteadecreasingoutputandsalesvolumeintheindustryasawhole,theCompanymanagedtomaintainstableandorderlydevelopment.Certainbusinessindicatorssuchasthesalesvolumedecreased,butslowerthantheindustryaverage.DuringtheReportingPeriod,theCompanysold675,000unitsofdieselengines,gasolineenginesandrelatedgeneratorsets,including138,100unitsofgasolineengines,generatingtotalsalesrevenueofRMB2,040,133,717.30,adropof
4.35%year-on-year.
Intermsofproductdevelopmentandsupportingareas,theCompanyhascompletedthedevelopmentofseveralmodelsofsingle-cylindercommonraildieselenginestofullymeettheStateIIIemissionstandardsofthree-wheelsandStateIVemissionstandardsofnon-roadmobilemachinery.TheCompanyhasestablishedall-roundconnectionwithindustrialmainstreambrandsforproductsofStateIVstandards.Forthekeyproduct4G36V16diesel,ithascompletedthecalibrationofemissionsourcemachinesformultipleafter-treatmentmodesandmultiplepowerranges,withadiversityofplantprotectiontractorsassupportingproducts.TheCompanydevelopedsupportingresourcesonallfronts,completedsupportingpromotionforanumberofproductmodelsandachievedmarkedgrowthinmarketalignment.
Intermsofmarketservice,theCompanyfurtheroptimizedandexpandedthefranchiseddealerteam,strengthenedthefranchiseddealernetwork,enhancedfranchiseloyalty,improvedtheaftermarketsalesandservicenetwork,developednewdealersandbeefedupthesalesandmanagementofaccessories.TheCompanycontinuedtoenhanceservicequality,fullypromotedtheexperienceofmodularmanagementofbusyfarmingseasons,intensifiedtrainingformarketservicepersonnel,mainengineplantsanddealers,exploredtheserviceapplicationofInternet+,drovetheanalysis,integrationandapplicationmanagementofqualityinformationandservicedataandimprovedtheoverallservicecapacityofserviceresources.
Intermsofqualitymanagement,theCompanyfurtherimplementedqualityprojects,refinedsystemmanagementandsuccessfullypassedtheexternalreviewforIATF16949andtheISO9001qualitysystemandtheon-sitemonitoringandreviewofCNAS.Itenhancedthequalityofwholemachinesandpartsonallfronts,madecontinuouseffortstoimproveproductquality,optimizedworkflowsinanumberofaspects,includingtestingequipment,productpartstraceabilitysystemsandqualityimprovementprojects,andrefinedprocesses,leadingtoenhancementinproductimage.
Intermsofinternalmanagement,theCompanystrengthenedproductionorganizationandmanagementaccordingtotheactualsituation,continuouslyimprovedthesupplysystem,intensifieddelicacymanagementofcostandinventory,andpromotedcostreductionandexpenditureminimizationasaresponsetothecontinuousmarketdownturn,leadingtosubstantialachievementsincostreductionandefficiencyenhancementandimprovementsinproductionandoperationefficiency.
DuringtheReportingPeriod,theCompanyestablishedJiangsuChangchaiMachineryCo.,Ltd.toimplement
lightengineandcastingrelocationprojects.ThenewsubsidiaryhasaregisteredcapitalofRMB300millionwithRMB10millionalreadypaidup.Early-stageworkoftheproject,includingfeasibilitydemonstration,planning,designandregistration,hasbeencompleted.Sofar,constructionhascommenced.Theprojectisplannedtobecompletedandputintooperationin2021.
IICoreBusinessAnalysis
1.OverviewSee“IOverview”above.
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
| 2019 | 2018 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 2,040,133,717.30 | 100% | 2,132,902,718.60 | 100% | -4.35% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 2,001,911,782.04 | 98.13% | 2,093,039,249.58 | 98.13% | -4.35% |
| Other | 38,221,935.26 | 1.87% | 39,863,469.02 | 1.87% | -4.29% |
| Byproductcategory | |||||
| Dieselengines | 1,856,130,365.33 | 90.98% | 1,945,336,290.52 | 91.21% | -4.59% |
| Gasolineengines | 133,936,656.91 | 6.57% | 130,329,100.71 | 6.11% | 2.77% |
| Other | 50,066,695.06 | 2.45% | 57,237,327.37 | 2.68% | -12.53% |
| Byoperatingsegment | |||||
| Domestic | 1,726,174,312.79 | 84.61% | 1,785,012,986.06 | 83.69% | -3.30% |
| Overseas | 313,959,404.51 | 15.39% | 347,889,732.54 | 16.31% | -9.75% |
(2)OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 2,001,911,782.04 | 1,679,856,891.00 | 16.09% | -4.35% | -5.74% | 1.24% |
| Byproductcategory | ||||||
| Dieselengines | 1,856,130,365.33 | 1,560,642,195.38 | 15.92% | -4.59% | -5.65% | 0.95% |
| Gasolineengines | 133,936,656.91 | 108,678,942.40 | 18.86% | 2.77% | -4.68% | 6.34% |
| Other | 50,066,695.06 | 40,328,639.97 | 19.45% | -12.53% | -11.05% | -1.34% |
| Byoperatingsegment | ||||||
| Domestic | 1,726,174,312.79 | 1,404,826,591.91 | 18.62% | -3.30% | -4.74% | 1.24% |
| Overseas | 313,959,404.51 | 304,823,185.84 | 2.91% | -9.75% | -10.01% | 0.28% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
| Operatingdivision | Item | Unit | 2019 | 2018 | Change(%) |
| Dieselengines | Unitsales | Unit | 536,932 | 556,443 | -3.51% |
| Output | Unit | 519,339 | 562,223 | -7.63% | |
| Inventory | Unit | 48,003 | 65,596 | -26.82% |
□Applicable√Notapplicable
(4)ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod
□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
| Productcategory | Item | 2019 | 2018 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| Dieselengines | Rawmaterials | 1,317,459,424.33 | 78.43% | 1,422,647,277.45 | 78.45% | -7.39% |
| Dieselengines | Laborcost | 214,361,508.91 | 12.76% | 238,105,274.10 | 13.13% | -9.97% |
| Dieselengines | Depreciation | 74,355,935.23 | 4.43% | 75,456,887.66 | 4.16% | -1.46% |
| Dieselengines | Energy | 27,773,748.68 | 1.65% | 28,471,079.99 | 1.57% | -2.45% |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
√Yes□NoChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)reviewedandapprovedtheProposalonEstablishingtheWholly-ownedSubsidiarytoImplementtheProjectofProducingLightEnginesandCastingontheextraordinaryboardmeetingheldon25February2019.TheBoardagreedtheCompanytoinvestRMB0.3billionforestablishingthewholly-ownedsubsidiarytoimplementtheprojectofproducinglightenginesandcasting.Fordetails,pleaserefertotheAnnouncementontheExternalInvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.：2019-004)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon26February2019.On6March2019,thewholly-ownedsubsidiarycompletedtheregistrationproceduresandobtainedtheBusinessLicenseissuedbytheAdministrativeExaminationandApprovalAuthorityofChangzhouStateHi-TechIndustryDevelopmentZone(XinbeiDistrict).Formoredetails,pleaserefertotheAnnouncementontheProgressofExternalinvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-005)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon7March2019.Thus,theconsolidationscopeoftheReportingPeriodincreasedasubsidiary-JiangsuChangchaiMachineryCo.,Ltd.
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
(8)MajorCustomersandSuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 864,536,279.47 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 42.38% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00 |
Informationabouttopfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | Customer1 | 360,622,078.51 | 17.68% |
| 2 | Customer2 | 192,587,952.49 | 9.44% |
| 3 | Customer3 | 139,976,253.71 | 6.86% |
| 4 | Customer4 | 90,595,836.18 | 4.44% |
| 5 | Customer5 | 80,754,158.58 | 3.96% |
| Total | -- | 864,536,279.47 | 42.38% |
Otherinformationaboutmajorcustomers:
□Applicable√NotapplicableMajorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 239,017,892.01 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 16.11% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00 |
Informationabouttopfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | Supplier1 | 98,793,697.74 | 6.66% |
| 2 | Supplier2 | 51,409,844.73 | 3.47% |
| 3 | Supplier3 | 37,965,669.05 | 2.56% |
| 4 | Supplier4 | 28,270,929.54 | 1.91% |
| 5 | Supplier5 | 22,577,750.95 | 1.52% |
| Total | -- | 239,017,892.01 | 16.11% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable
3.Expense
Unit:RMB
| 2019 | 2018 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 97,085,117.05 | 126,997,066.87 | -23.55% |
| Administrativeexpense | 106,183,133.40 | 116,027,838.96 | -8.48% |
| Financecosts | -4,424,871.16 | -903,762.30 | --- |
| R&Dexpenses | 66,221,376.27 | 72,182,840.78 | -8.26% |
4.R&DExpense
√Applicable□NotapplicableTheCompanyhasbeenvaluingtheR&Dofnewproductsandapplicationofnewtechnologies.Basedonthemarket-orientedpolicy,theCompanycontinuouslypromotestechnologicalupgrading,makesgreateffortstoimprovethetechnologicaldevelopmentcapacityandself-innovationcapacityandincreasestheaddedvalueofproductssoastocontinuouslyenhancetheCompany’smarketcompetitiveness.DetailsaboutR&Dexpense:
| 2019 | 2018 | Change(%) | |
| NumberofR&Dpersonnel | 360 | 368 | -2.17% |
| R&Dpersonnelas%oftotalemployees | 11.96% | 11.55% | 0.41% |
| R&Dexpense(RMB) | 66,221,376.27 | 72,182,840.78 | -8.26% |
| R&Dexpenseas%ofoperatingrevenue | 3.25% | 3.38% | -0.13% |
| CapitalizedR&Dexpense(RMB) | 0.00 | 0.00 | --- |
| CapitalizedR&Dexpenseas%oftotalR&Dexpense | 0.00% | 0.00% | --- |
ReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
| Item | 2019 | 2018 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 2,226,972,713.23 | 2,494,609,605.84 | -10.73% |
| Subtotalofcashusedinoperatingactivities | 2,247,515,570.75 | 2,220,790,078.95 | 1.20% |
| Netcashgeneratedfrom/usedinoperatingactivities | -20,542,857.52 | 273,819,526.89 | —— |
| Subtotalofcashgeneratedfrominvestingactivities | 20,016,934.88 | 157,994,762.83 | -87.33% |
| Subtotalofcashusedininvestingactivities | 98,179,310.79 | 51,775,807.81 | 89.62% |
| Netcashgeneratedfrom/usedininvestingactivities | -78,162,375.91 | 106,218,955.02 | —— |
| Subtotalofcashgeneratedfromfinancingactivities | 34,000,000.00 | 40,700,000.00 | -16.46% |
| Subtotalofcashusedinfinancingactivities | 78,505,058.96 | 58,922,496.75 | 33.23% |
| Netcashgeneratedfrom/usedinfinancingactivities | -44,505,058.96 | -18,222,496.75 | —— |
| Netincreaseincashandcashequivalents | -142,494,895.42 | 361,815,985.16 | —— |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable?Notapplicable
Significantchangesinnetcashgeneratedfrom/usedinoperatingactivitiescomparedtothatoflastyearweremainlyduetotheincreaseofaccountsreceivablewithinthecreditperiod,realizationoflessbank’sacceptancebillsintheReportingPeriod;Significantchangesinnetcashgeneratedfrom/usedininvestingactivitiescomparedtothatoflastyearwereduetotheCompany’sinvestmentinJiangsuChangchaiMachineryCo.,Ltd.andJiangsuHoushengNewEnergyTechnologyCo.,Ltd.intheReportingPeriodandincreaseincashinflowthroughsalesofstocksinBankofJiangsulastyear;Significantchangesinnetcashgeneratedfrom/usedinfinancingactivitiescomparedtothatoflastyearweremainlyduetodecreaseofbankloansintheReportingPeriod.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod
√Applicable?Notapplicable
ThebigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriodmainlyduetoincreaseofaccountsreceivablewithinthecreditperiodwhichdecreasedthenetoperatingcashflow.TheexternalinvestmentsoftheCompanyintheReportingPerioddecreasedthenetinvestingcashflow.IIIAnalysisofNon-CoreBusinesses
□Applicable√Notapplicable
IVAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetCompositionAdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeasessince2019
√Applicable□Notapplicable
Unit:RMB
| 31December2019 | 31December2018 | Change | Reasonfor |
| Amount | As%oftotalassets | Amount | As%oftotalassets | inpercentage(%) | anysignificantchange | |
| Monetaryassets | 637,214,006.06 | 18.28% | 800,960,036.69 | 22.61% | -4.33% | |
| Accountsreceivable | 419,295,665.51 | 12.03% | 378,859,159.11 | 10.70% | 1.33% | |
| Inventories | 473,352,010.58 | 13.58% | 557,953,891.70 | 15.75% | -2.17% | |
| Investmentproperty | 48,447,666.83 | 1.39% | 50,656,007.63 | 1.43% | -0.04% | |
| Long-termequityinvestments | 0 | 0.00% | 0.00 | 0.00% | 0.00% | |
| Fixedassets | 457,582,514.13 | 13.13% | 511,250,371.37 | 14.43% | -1.30% | |
| Constructioninprogress | 91,358,156.24 | 2.62% | 89,090,384.71 | 2.52% | 0.10% | |
| Short-termborrowings | 22,000,000.00 | 0.63% | 27,000,000.00 | 0.76% | -0.13% | |
| Long-termborrowings | 0.00 | 0.00% | 2,000,000.00 | 0.06% | -0.06% |
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(derivativ | 36,205,975.04 | 78,500,000.00 | 26,753,873.41 | 87,952,101.63 |
| efinancialassetsexclusive) | ||||||||
| 4.Investmentinotherequityinstruments | 470,940,000.00 | 61,946,000.00 | 317,059,775.00 | 532,886,000.00 | ||||
| Subtotaloffinancialassets | 507,145,975.04 | 61,946,000.00 | 317,059,775.00 | - | 78,500,000.00 | 26,753,873.41 | - | 620,838,101.63 |
| Totalofabove | 507,145,975.04 | 61,946,000.00 | 317,059,775.00 | - | 78,500,000.00 | 26,753,873.41 | - | 620,838,101.63 |
| Financialliabilities | 0.00 | 0.00 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingvalue | Reasons |
| Monetaryassets | 92,629,261.89 | Cashdepositsofbankacceptance’sbillandletterofcredit |
| Houseconstructions | 2,936,446.13 | Mortgageofbankloan |
| Landuseright | 995,328.00 | Mortgageofbankloan |
| Machineryequipment | 48,181,935.62 | Mortgageofbankloan |
| Total | 144,742,971.64 |
VInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| InvestmentsmadeinReportingPeriod(RMB) | Investmentsmadeinsameperiodoflastyear(RMB) | +/-% |
| 60,000,000.00 | 20,315,967.20 | 195.33% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
| Investee | Mainbusiness | Investmentmethod | Investmentamount | Shareholdingpercentage | Capitalresources | Partner | Investmentterm | Typeofproducts | Progressasofthebalancesheetdate | Estimatedincome | ProfitsorlossesofinvestmentintheReportingPeriod | Involvinginlawsuitornot | Disclosuredate(ifany) | Disclosureindex(ifany) |
| JiangsuHoushengNewEnergyTechnologyCo.,Ltd. | Lithiumbatterybaffle | Capitalincrease | 50,000,000.00 | 8.33% | Self-owned | ChangzhouInvestmentGroupCo.,Ltd.andChangzhouSynergeticInnovationPrivateEquityFund(Lim | Long-term | Lithiumbatterybaffle | Theinputhasbeenmade | 0.00 | 0.00 | No | 9July2019 | 2019-022 |
| itedPartnership) | ||||||||||||||
| JiangsuChangchaiMachineryCo.,Ltd. | Internalcombustionengine,relatedgeneratorsetsandparts | Establishment | 10,000,000.00 | 100.00% | Self-owned | Naught | Long-term | Internalcombustionengine,relatedgeneratorsetsandparts | Theinputhasbeenmade | 0.00 | -396,390.46 | No | 26February2019 | 2019-004 |
| Total | -- | -- | 60,000,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -396,390.46 | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingvalue | Gain/LossonfairvaluechangesinReportingPeriod | Accumulatedfairvaluechangeschargedtoequity | PurchasedinReportingPeriod | SoldinReportingPeriod | Gain/lossinReportingPeriod | Endingcarryingvalue | Accountingtitle | Sourceofinvestmentfunds |
| Domestic/ | 600166 | Foton | 41,784,0 | Fairvalue | 262, | 39,0 | 221, | 0.00 | 0.00 | 0.00 | 302, | Investmen | Self-owne |
| Foreignstock | Motor | 00.00 | method | 990,000.00 | 15,000.00 | 187,850.00 | 005,000.00 | tinotherequityinstruments | dfund | ||||
| Domestic/Foreignstock | 600919 | BankofJiangsu | 18,000,000.00 | Fairvaluemethod | 107,460,000.00 | 22,860,000.00 | 95,472,000.00 | 0.00 | 0.00 | 0.00 | 130,320,000.00 | Investmentinotherequityinstruments | Self-ownedfund |
| Domestic/Foreignstock | 600377 | JiangsuExpressway | 90,500.00 | Fairvaluemethod | 490,000.00 | 71,000.00 | 399,925.00 | 0.00 | 0.00 | 0.00 | 561,000.00 | Investmentinotherequityinstruments | Self-ownedfund |
| Othersecuritiesinvestmentsheldattheperiod-end | -- | -- | -- | ||||||||||
| Total | 59,874,500.00 | -- | 370,940,000.00 | 61,946,000.00 | 317,059,775.00 | 432,886,000.00 | -- | -- | |||||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
VISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√NotapplicableVIIMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 157,983,698.84 | 85,916,917.70 | 183,792,933.88 | -4,215,018.99 | -3,863,133.37 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 69,629,305.71 | 49,034,871.81 | 40,959,222.43 | 248,139.32 | 160,355.43 |
| HoushengInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 48,830,828.93 | 48,029,712.93 | 536,504.84 | 1,758,606.98 | 1,727,307.33 |
| HoushengAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplante | 10,000,000.00 | 29,088,562.06 | 446,645.83 | 13,888,579.77 | -926,825.38 | -926,825.38 |
| retc. | ||||||||
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 101,729,651.75 | 90,091,435.72 | 133,936,656.91 | 9,931,517.74 | 8,591,287.04 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 100,000,000.00 | 9,606,403.66 | 9,606,403.66 | 0.00 | -387,276.34 | -393,596.34 |
SubsidiariesobtainedordisposedintheReportingPeriod:
√Applicable□Notapplicable
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| JiangsuChangchaiMachineryCo.,Ltd. | Newlyestablished | Conformtothelong-termdevelopmentplanoftheCompanyandinterestsofallshareholdersandtheCompany.ItisestimatedthatnosignificantimpactswillbegeneratedontheCompany’sfinancialstatusandoperatingperformance. |
Notes:
(1)ChangchaiCompany,Limitedheldthe15
thMeetingofthe8
thBoardofDirectorson27November2018,onwhichtheProposalonCapitalIncreaseintheWholly-ownedSubsidiarywasreviewedandapproved,andintendedtomakethecapitalincreaseinthewholly-ownedsubsidiaryHoushengInvestmentwithitsself-ownedfundsofRMB10million.Afterthiscapitalincrease,theregisteredcapitalofHoushengInvestmentincreasedtoRMB40millionfromRMB30million.On14February2019,HoushengInvestmentcompletedtheregistrationproceduresandobtainedtheBusinessLicenseissuedbyChangzhouBureauofIndustryandCommerce.Fordetails,pleaserefertotheAnnouncementonCapitalIncreaseintheWholly-ownedSubsidiary(No.:2018-034)andtheAnnouncementonProgressofCapitalIncreaseintheWholly-ownedSubsidiary(No.:2019-002)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninforespectivelyon29November2018and15February2019.
(2)On26December2018,ChangchaiCompany,LimitedformallysignedtheInvestmentAgreementwithChangzhouHigh-techZone.Accordingtotheagreement,theCompanywillinvestRMB0.3billiontoestablishawholly-ownedsubsidiarytoimplementtheprojectofproducinglightengineandcasting.TheCompanyheldtheextraordinaryboardmeetingon25February2019andapprovedtheProposalonEstablishingAWholly-ownedSubsidiarytoImplementtheProjectofProducingLightEngineandCasting.Thesaidwholly-ownedsubsidiarycompletedtheregistrationprocedureson6March2019andobtainedtheBusinessLicenseissuedbytheAdministrativeExaminationandApprovalAuthorityofChangzhouNationalHi-TechIndustrialDevelopmentZone(XinbeiDistrict).Formoredetails,pleaserefertotheAnnouncementontheExternalInvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-004)andtheAnnouncementonProgressoftheExternalInvestmentandEstablishingtheWholly-ownedSubsidiary(No.:2019-005)onSecuritiesTimes,Hong
KongTaKungPaoandCninforespectivelyon26February2019and7March2019.Thepreliminaryworkoftheprojectsuchasfeasibilitydemonstration,planningdesignandfilinghasbeencompleted.TheconstructionhasofficiallystartedattheendofDecember2019andisscheduledtobecompletedandputintooperationin2021.
VIIIStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableIXProspects
1.IndustrialCompetitionPatternandDevelopmentTrendIn2019,agriculturalmachinerymarketremainedinthestageofdeepadjustment,withfasterproductupgradingandmoreintensiveindustrialreshuffle.In2020,China’sagriculturalmachinerymarketwillsustainthelow-speednormalizeddevelopmentofthetransformationstage.Despitethedeclineofthetraditionalcategoriesmarket,opportunitiescanstillbefoundinmarketsegments,withintelligentagriculturalmachineryfavoredbythemarket.Thenationalmacro-economywillbepositiveinthelongrunandagriculturalmachineryindustryissupportedbypolicies.Theagriculturalmachinerymarketisprospectivefromtheperspectiveoflong-termdevelopment.Astotalmarketdemandislarge,itisnotonlyanopportunitybutalsoachallengeforagriculturalmachinerymanufacturers,whoneedtoacceleratetheupgradingofagriculturalmachineryproductsandtechnology.
Inaddition,thehugepressurebroughtbythenewenergyindustrytotraditionalinternal-combustionenginecompanieshasforcedtraditionalenginemanufacturerstoactivelyorpassivelybecomeinvolvedinthedevelopmentofnewenergyautomotiveindustries.
Atpresent,thedevelopmenttrendandmarketsituationoftheindustryaremainlyasfollows:firstly,thedemandforagriculturalmachineryandcommercialvehiclesslowsdown,bringingfurthercompetitionoftheindustry;secondly,thecostofproductemissionupgradeisincreasingandittakesacertaintimeforthemarkettoaccept;thirdly,usersareveryconcernedaboutreliability,vibration,noiseandappearancequalityofdieselengines,andextensionof"ThreeGuaranteesofProducts"increasedtheenterpriseexpenseonservice.Overall,thedieselmarketcompetitionisfierce.Therewillbebettermarketprospectsfordieselengineswithhigh-performanceinenergysavingandenvironmentalprotectionandmeetingtherigiddemandofspecificfields.
2.Companydevelopmentstrategies:
Tobaseonthefarmmachinery,dostrongerinthepower,developthefieldsanddevelopscientifically.
ThecurrentproductsmarketstructureoftheCompanymainlydistributedinthefarmequipmentsuchasthewalkingtractor,bigsmallandmedium-sizedwheeledtractors,caterpillartractors,gardeningtractors,plantprotectiontractors,tractorsforpeanutharvest,andcombineharvesters;agriculturalsmallconstructionmachinery,threeroundsandlow-speedvehicles;lighttrucks,pickupsautomobileindustry;generatorandwaterpump,smallshipauxiliarymachinery.TheCompanywouldtakethemarketandusers’demandsastheorientationtoseizethemainlineoftheproductsandtoimprovethequalityandincreasetheefficiencyaswellastodobetterinthepowerandtoconstantlyenhancethemarketcompetitiveness.
Inthefieldofagriculturalmachinery,theCompanymaintainedaleadingpositioninthehorsepowersegmentandcontinuestoexpandthemarketshare,andactivelyexploredandenteredthemarketinlarge-horse-poweredvehiclesandnon-road-specificpowersupportingareasforengineeringuseandachievedstablebreakthroughsintheniche.Intheterminalarea,theCompanyactivelyexpandedthemarketshareoftransplanterproducts.Inaddition,theCompanyextendeditsproductstructuretothegasolineenginefieldbyacquiringajointventurewith
ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.,continuouslyexpandedproductapplication,firmlygraspedproductqualityandactivelydevelopedoverseasanddomesticcustomers.TheCompanywillfurtherinnovatethemanagementmechanism,acceleratetheprogressofproductdevelopmentandvigorouslyexpandthemarkettopromotethesustainedandsteadydevelopmentoftheCompany.Inaddition,theCompanyisusingthecloudplatformtechnologytopromoteinformationbuildinganddevelopahighlyefficientandpracticalinformationplatform.Meanwhile,asaresponsetotheplansofChangzhou,theCompanyisimplementinglightengineandcastingrelocationprojectstointegrateexistingresources,improvequalityandincreaseefficiency,whichisbeneficialtotheCompany’ssustainabledevelopment.
3.OperationPlanfortheYear2020:
TheCompanyisimprovingthequalityofsinglecylindermachinerytocreatefinequalityproductsandenhancingthecompetitivenessofmulti-cylindermachineryproductstoexpandthemarket;speedingupthedevelopmentofendmarket,increasingitssizeandmakingachievementsintheparkbuilding;creatingnewmanagementmodelsforhigherreturnsandutilizingcapitaltodrivedevelopment.In2020,theCompanyisexpectedtoachieveasalesrevenueofRMB2billionwithmorethan80,000unitsofnewproducts.TheaboveoperationplandoesnotrepresenttheprofitforecastofY2020bythelistedcompany,andwhethercanberealizeddependsonvariousfactorsonthechangesofmarketconditionsandtheeffortlevelofthemanagementteam.Thereisalotofuncertainty,andinvestorsshouldpayspecialattentiononit.
4.Possiblerisksandcountermeasures:
(1)Marketrisk:
Withfiercecompetition,over-capacityofsometraditionalproductsandthetotalavailablemarketofthesinglecylinderenginewereinadeclinetendencyaswellasthedemandfromtheindustrywasinsufficient.Andtheprofitabilityoftheenterprisesfacedwithrathergreatpressure.Inthefuture,emissionstandardsofinternalcombustionengineswillbefurtherupdatedandairpollutioncontrolwillbefurtherstringent.Safetyproductionandenvironmentalprotectionwillbenormalized,andtheindustrywillstillbeinaperiodofdeepadjustment.However,long-termimprovementofthenationalmacro-economyremainsunchanged,andtheagriculturalmachinerymarketisstillpromisingwithalargetotalmarketdemand.
Countermeasures:
1.Continuetooptimizeproductandmarketstructuresandstrengthenthemarketfoundationtodomesticandforeignmarkets.
2.Dedicatetoproductdevelopmentandupgradingandproactivelyexpandingnewsupportingareas.
3.Fullyfocusonmarketqualitymattersandimprovemarketreputationwithsoundmeasures.
4.ContinuetodrivetheprogressofkeytechnologicalimprovementprojectsandbuildChangchaiIndustryParkwithhighstandards.
5.Maketangibleeffortstoreinforceleanmanagementtopromotequalityimprovement,costreductionandefficiencyenhancement.
6.Makefulluseofthecapitalmarkettoperformcapitaloperationandassistcorporatedevelopment.
7.Toimprovethequalityofemployeesandprovidehumanresourcessupportforcompanydevelopment.
(2)Industrialrisk:
Therapiddevelopmentofnewenergyvehiclesisboundtoaffectthetraditionalfuelautomobileindustryanditsindustrialchain,specifically;itwilldirectlyaffecttheengineandgearboxmanufacturingindustry,andgenerateagreaterimpactonthetraditionalgasolineanddieselengineindustry.Althoughthematurityofrelatedindustriesinthefieldofnewenergymaytakeyears,morethanadecadeorevenlongerfortransition,thetrendisinevitable.Inresponsetotheupgradingofemissionstandardsandtherapiddevelopmentofnewenergyindustries,
enterprisesinthetraditionalinternal-combustionengineindustryneedtoseeknewdevelopmentopportunitiestoshiftindustrialrisks.Countermeasures:
Thefirstmeasureistopreparelayoutinnewenergyindustriesinadvancetoseizetheopportunityforindustrydevelopment.ThesecondoneistoincreasetheR&Dintensityofnewproductsthatmeetsthestandardsofnon-roadnationalGradeIVandothernewproducts,increaseproductemissionstandards,andtakeadvanceddieselengineproductsasthebasisoftheCompanytoexplorethedevelopmentdirectionofnewindustriesandmeettheindustrialupgradingandtransformation.
(3)Policyrisk:
Themacro-economicenvironmentiscomplexandchangeable,economicgrowthisslowingdownandthepolicyonthedieselengineemissionsisbecomingstricterandstricter,whichincreasedtheoperatingdifficultiesandthepressure.Assuch,themarketdemandsforsomeproductsoftheCompanywillbeaffectedtosomeextent.
Countermeasures:
TheCompanywillpaycloseattentiontothegovernment’seconomicmacro-controlpoliciesandmarketdevelopments.Topromotetheworksuchas“promotetheproductsupgradeandqualityenhancing”,toembracetheupgradingoftheengineemissionstandards,toacceleratetheforgingofthenew“StandardV”platform,andtoexecutethenecessaryproductsresourcesreservesinadvance.
(4)Talentrisk:
AstheCompanykeeps,inrecentyears,improvingoperationalefficiencyandtechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend,thedemandforprofessionalandseniormanagementpersonnelisgreatlyincreased.Countermeasures:
Firstly,introduceallkindsofhigh-rankingtalentsthroughvarietiesofchannelsandstrengthenpersonneltraining.
Secondly,theCompanyalsomakesoptimizationintheperformanceappraisalsystemandincentivepaysystemandstrengthensthetrainingofemployeestoreducethelossofprofessionalsandstrengthenspersonnelfortheconstructionoftalentedpersonnelteams.
XCommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
1.DuringtheReportingPeriod
√Applicable□Notapplicable
| Date | Wayofcommunication | Typeofcommunicationparty | Indextomaininformationcommunicated |
| 31December2019 | Other | Individual | Inquiredthecapitaloperationofthecapitalmarket |
| 27December2019 | Other | Individual | InquiredtheHoushenglithiumbatterybaffleproject |
| 24December2019 | Other | Individual | Inquiredthereformandrestructuringtowardstate-ownedenterprises |
| 24December2019 | Other | Individual | InquiredthegeneralelectionoftheBoard |
| 24December2019 | Other | Individual | InquiredthegeneralelectionoftheBoard |
| 16December2019 | Other | Individual | InquiredthevisitingactivityofHoushenglithiumbatterybaffleproject |
| 16December2019 | Other | Individual | InquiredthegeneralelectionoftheBoard |
| 5December2019 | Other | Individual | InquiredthestartingtimeofproductionofHoushenglithiumbatterybaffle |
| 26November2019 | Other | Individual | Inquiredthebusinessname |
| 25November2019 | Other | Individual | Inquiredthebusinessname |
| 25November2019 | Other | Individual | Inquiredthebusinessname |
| 25November2019 | Other | Individual | Inquiredthecontinuoussupervisionopinionsfromsecuritiescompanies |
| 20November2019 | Other | Individual | InquiredthestockpriceoftheCompany |
| 7November2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
| 7November2019 | Other | Individual | Inquiredtheconstructionprogressoftheindustrialpark |
| 6November2019 | Other | Individual | InquiredthestockpriceoftheCompany |
| 23October2019 | Other | Individual | InquiredtherepurchaseofBshares |
| 17September2019 | Other | Individual | InquiredtheconsultationoftheCompany’sfinancialaffairs |
| 11September2019 | Other | Individual | Inquiredshareholders |
| 5September2019 | Other | Individual | Inquiredindustrypolicies |
| 5September2019 | Other | Individual | Inquiredtheconditionoftheagriculturalmachineryindustry |
| 5September2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
| 5September2019 | Other | Individual | InquiredthedevelopmentstrategyoftheCompany |
| 30August2019 | Other | Individual | Inquiredtheprogressofnewenergyproject |
| 6August2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
| 29July2019 | Other | Individual | Inquiredthelandoftheindustrialpark |
| 28July2019 | Other | Individual | Inquiredtheremovalproject |
| 28July2019 | Other | Individual | Inquiredtheremovalproject |
| 10July2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
| 4July2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
| 1July2019 | Other | Individual | InquiredtheconsultationoftheCompany’sbusiness |
| 31May2019 | Other | Individual | Inquiredtheinvestmentinthenewenergyindustry |
| 31May2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
| 21May2019 | Other | Individual | InquiredtheownershipofpremisesoftheCompany’safter-saleservicesites |
| 21May2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
| 21May2019 | Other | Individual | InquiredthemainbusinessoftheCompany |
| 9May2019 | Other | Individual | Inquiredthereformofstate-ownedenterprisestowardmixedsystemandinnovation |
| 8May2019 | Other | Individual | Inquiredtheproposalsongeneralmeetings |
| 25April2019 | Other | Individual | InquiredthebusinessdevelopmentoftheCompany |
| 25April2019 | Other | Individual | Inquiredtheindustrialinvestmentfund |
| 17April2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
| 12April2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
| 11April2019 | Other | Individual | InquiredthereformandupgradingoftheCompany |
| 11April2019 | Other | Individual | InquiredtheCompany’slayoutinthenewenergyindustry |
| 10April2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
| 10April2019 | Other | Individual | InquiredtheCompany’slayoutinthenewenergyindustry |
| 10April2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
| 2April2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
| 31March2019 | Other | Individual | InquiredtheengagementofdirectorsoftheCompany |
| 31March2019 | Other | Individual | Inquiredtheinvestmentsmadebytheindustrialinvestmentfund |
| 28March2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
| 28March2019 | Other | Individual | InquiredtheprogressofM&AandrestructuringoftheCompany |
| 28March2019 | Other | Individual | InquiredthemainbusinessoftheCompany |
| 27March2019 | Other | Individual | Inquiredtheprogressoflithiumbatterybaffleandprogressofinvestedprojectsbysubsidiaries |
| 21March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
| 21March2019 | Other | Individual | InquiredthebrandvalueoftheCompany |
| 19March2019 | Other | Individual | Inquiredtheprogressofinvestedprojectsbysubsidiaries |
| 18March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
| 18March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
| 14March2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
| 10March2019 | Other | Individual | InquiredthereformanddevelopmentoftheCompany |
| 10March2019 | Other | Individual | InquiredthestockpriceoftheCompany |
| 8March2019 | Other | Individual | InquiredthestockpriceoftheCompany |
| 5March2019 | Other | Individual | InquiredthetransformationandupgradingoftheCompany |
| 25February2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
| 25February2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
| 25February2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
| 2February2019 | Other | Individual | InquiredtheinvestmentoftheCompany |
| 1February2019 | Other | Individual | Inquiredthefestivalgreetingstoinvestors |
| 1February2019 | Other | Individual | InquiredtheinvestmentintentionprogressoftheCompany |
| 31January2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
| 25January2019 | Other | Individual | InquiredtheindustriallayoutoftheCompany |
| 25January2019 | Other | Individual | InquiredtheimpactsofequitytransferontheCompany |
| 25January2019 | Other | Individual | InquiredthesalesoffinancialassetsbytheCompany |
| 24January2019 | Other | Individual | Inquiredtheindustrycondition |
| 24January2019 | Other | Individual | InquiredthedevelopmentplanningoftheCompany |
| 24January2019 | Other | Individual | InquiredtheproductsoftheCompany |
| 23January2019 | Other | Individual | InquiredthedevelopmentsuggestionsoftheCompany |
| 23January2019 | Other | Individual | Inquiredtheprogressofthelithiumbatterybaffle |
| 13January2019 | Other | Individual | Inquiredthegovernmentsubsidies |
| 11January2019 | Other | Individual | InquiredtheperformanceforecastoftheCompany |
| Timesofcommunications | 81 | ||
| Numberofinstitutionscommunicatedwith | 0 | ||
| Numberofindividualscommunicatedwith | 81 | ||
| Numberofothercommunicationparties | 0 | ||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | None | ||
PartVSignificantEvents
IProfitDistributionstoOrdinaryShareholders(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,forordinaryshareholderswasformulated,executedorrevisedintheReportingPeriod:
√Applicable□Notapplicable
InArticlesofAssociation,whichhadconfirmedthespecificprofitsdistributionandclearedouttheconditions,standardsandproportionofthecashbonus,stipulatedthedecision-makingprogressoftheformulationandalternationoftheprofitsdistributionpoliciesandthechaptersaswellastheregulationsfullyensuretheopportunitiesforthemediumandsmallshareholderstoexertthefunctionsandtoprovideadvicesaswellasappeals.Thecashbonusofrecent3yearsoftheCompanymetwiththeregulationsoftheArticlesofAssociationandduringthedecision-makingprocessoftheprofitsdistributionproposal,theIndependentDirectorsstatedtheindependentadvicesandfullyrespectedtheadvicesfromthemediumandsmallshareholders.TheprofitsdistributionpreplanandtheturningcapitalreserveintosharecapitalpreplanoftheCompanywerebothmetwiththerelevantregulationsoftheArticlesofAssociationandsoon.
| Specialstatementaboutthecashdividendpolicy | |
| IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
| Specificandcleardividendstandardandratio | Yes |
| Completedecision-makingprocedureandmechanism | Yes |
| Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
| Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
| Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | N/A |
Theprofitdistributionstoordinaryshareholders,eitherintheformofcashorstock,inthepastthreeyears(includingtheReportingPeriod)aresummarizedasfollows:
| Year | Profitsdistributionproposal | Turningcapitalreserveintosharecapitalproposal | Execution |
| 2019 | No | No | StillneededtosubmittotheAnnualGeneralMeeting |
| 2018 | DistributedRMB0.25ofevery10shares(taxesincluding) | No | Finishedtheexecution |
| 2017 | DistributedRMB0.30ofevery10shares(taxesincluding) | No | Finishedtheexecution |
Cashdividendforordinaryshareholdersinthepastthreeyears(includingtheReportingPeriod):
Unit:RMB
| Year | Cashdividends(taxinclusive)(A) | Netprofitattributabletoordinaryshareholdersofthelistedcompanyinconsolidatedstatementsfortheyear(B) | Aas%ofB(%) | Cashdividendsinotherforms(C) | Cas%ofB(%) | Totalcashdividends(includingthoseinotherforms)(D) | Das%ofB(%) |
| 2019 | 0.00 | 24,934,586.11 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| 2018 | 14,034,358.15 | 62,021,374.04 | 22.63% | 0.00 | 0.00% | 14,034,358.15 | 22.63% |
| 2017 | 16,841,229.78 | 46,431,302.73 | 36.27% | 0.00 | 0.00% | 16,841,229.78 | 36.27% |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive.
√Applicable□Notapplicable
| ReasonwhytheCompanyfailstoputforwardacashdividendproposalfortheordinaryshareholdersdespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletotheordinaryshareholdersarepositive | UseanduseplanforretainedearningsoftheCompany |
| TheimplementationoftheremovalprojectoflightengineandcastingbytheCompanyneedssubsequentcapitalinputwithlargeamount.BasedonthecomprehensiveconsiderationoftheCompany’soperationanddevelopment,theCompanyintendstofailtoconductcashdistributionin2019.Inaddition,theCompanywillactivelypromotethecashdistributionwayunderthepremiseofmakingprofitsandcashmeetingthesustainableoperationanddevelopmentoftheCompanysoastoprotectandincreasethelong-terminterestsofinvestors. | EnhancetheCompany’scapitalstrengthandprepareforthecorporatedevelopment |
IIFinalDividendPlanfortheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIFulfillmentofCommitments
1.CommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | bonus | RewardsPlanforShareholdersinNextThreeYears(2017-2019)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyears | 11May2017 | Year2017-2019 | Ongoing |
| shouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | |||
| Fulfilledontime | Yes | ||
| Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A | ||
2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√NotapplicableIVOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandMethods
√Applicable□Notapplicable
| Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
| TheNoticeonRevisingandIssuingtheFormatsof2019FinancialStatementsforGeneralEnterprisesissuedbytheMinistryofFinanceon30April2019requiresthecompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsbutnotthenewstandardsgoverningrevenueandleaseorcompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsandrevenuebutnotthenewstandardsgoverningleasetoadjustitemsoffinancialstatementsinlinewithrequirementsoftheAppendix1andAppendix2oftheNotice. | On27August2019,theCompanyheldthe20thMeetingofthe8thBoardofDirectorsandthe16thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesofSomeAccountingPolicies | Referto(1)ofothernotesfordetails |
| TheCompanystartstoimplementtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,whichrevisedandissuedbytheMinistryofFinanceinMarch2017andhereinaftercollectivelyreferredtoasnewstandardsgoverningfinancialinstrumentssince1January2019whichstipulatethatthecompanyshallclassifyandmeasurefinancialinstrumentsinaccordancewithregulationsontheexecutiondate,whenthedataofcomparativefinancialstatementsofprioryearsdonotcomplywiththenewstandards,noadjustmentismadebytheCompany. | On9April2019,theCompanyheldthe17thMeetingofthe8thBoardofDirectorsand13thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesinSomeAccountingPolicies | Referto(2)ofothernotesfordetails |
Othernotes:
(1)InfluenceofChangesinFormatsofFinancialstatementsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
| 31December2018 | 1January2019 | ||
| Notesreceivableandaccountsreceivable | 874,229,941.58 | Notesreceivable | 495,370,782.47 |
| Accountsreceivable | 378,859,159.11 | ||
| Notespayableandaccountspayable | 1,030,130,275.77 | Notespayable | 438,375,400.00 |
| Accountspayable | 591,754,875.77 | ||
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
| 31December2018 | 1January2019 | ||
| Notesreceivableandaccountsreceivable | 790,877,079.72 | Notesreceivable | 490,519,795.91 |
| Accountsreceivable | 300,357,283.81 | ||
| Notespayableandaccountspayable | 987,550,797.44 | Notespayable | 425,995,400.00 |
| Accountspayable | 561,555,397.44 | ||
(2)InfluenceofExecutionofNewStandardsGoverningFinancialInstrumentsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
| Item | 31December2018 | Affectedamount | 1January2019 | |
| Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
| Othercurrentassets | 34,357,608.97 | -8,253,873.41 | 26,103,735.56 | |
| Held-for-tradingfinancialassets | 8,253,873.41 | 8,253,873.41 | ||
| Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | ||
| Investmentinother | 472,150,000.00 | 1,210,000.00 | 470,940,000.00 | |
| equityinstruments | ||||
| Othernon-currentfinancialassets | 27,911,369.49 | 27,911,369.49 | ||
| Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
| Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 |
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
| Item | 31December2018 | Affectedamount | 1January2019 | |
| Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
| Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | ||
| Investmentinotherequityinstruments | 471,350,000.00 | 410,000.00 | 470,940,000.00 | |
| Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
| Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 | ||
VIIRetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
√Applicable□NotapplicableChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)reviewedandapprovedtheProposalonEstablishingtheWholly-ownedSubsidiarytoImplementtheProjectofProducingLightEnginesandCastingontheextraordinaryboardmeetingheldon25February2019.TheBoardagreedtheCompanytoinvestRMB0.3billionforestablishingthewholly-ownedsubsidiarytoimplementtheprojectofproducinglightenginesandcasting.Fordetails,pleaserefertotheAnnouncementontheExternalInvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.：2019-004)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon26February2019.On6March2019,thewholly-ownedsubsidiarycompletedtheregistrationproceduresandobtainedtheBusinessLicenseissuedbytheAdministrativeExaminationandApprovalAuthorityofChangzhouStateHi-TechIndustryDevelopmentZone(XinbeiDistrict).Formoredetails,pleaserefertotheAnnouncementontheProgressofExternalinvestmentandIntentionofEstablishingtheWholly-ownedSubsidiary(No.:2019-005)disclosedonSecuritiesTimes,HongKongTaKungPaoandCninfoon7March2019.
Therefore,thesubsidiaryJiangsuChangchaiMachineryCo.,Ltd.hasbeennewlyaddedtotheconsolidatedfinancialstatementsoftheReportingPeriod.
IXEngagementandDisengagementofIndependentAuditor
Currentindependentauditor:
| Nameofthedomesticindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 60 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 18 |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | DaiWeizhong,XuWenxiang |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | DaiWeizhongfouryears,XuWenxiangtwoyears |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
□Applicable√Notapplicable
XPossibilityofListingSuspensionorTerminationafterDisclosureofthisReport
□Applicable√Notapplicable
XIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorLegalMatters
√Applicable□Notapplicable
| Generalinformation | Involvedamount(RMB’0,000) | Provision | Progress | Decisionsandeffects | Executionofdecisions | Disclosuredate | Indextodisclosedinformation |
| AsforthelawsuitagainstShandongHongliGroupCo.,Ltd.,thedefendant | 1,436 | None | Thejudgmentwasmade | Notapplicable | Compulsoryexecutionandunderthe |
| accumulativelyowedtheCompany’spaymentforgoodsofRMB14.36million.TheCompanyfiledanappealtoChangzhouIntermediatePeople’sCourtin2001andappliedtothecourtforcompulsoryexecutioninApril2002.Atpresent,thesaidcompanyisgoingintobankruptcyproceedings. | atthesecondinstance | bankruptcyliquidation |
XIIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIVCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√Notapplicable
XVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√Notapplicable
XVIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.。
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.OtherMajorRelated-PartyTransactions
√Applicable□Notapplicable
TheCompanyanditscontrollingshareholderChangzhouInvestmentGroupCo.,Ltd.signedtheAgreementofTransferringtheCapitalContributionRightinJiangsuHoushengNewEnergyTechnologyCo.,Ltd.withChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership),eachtransfereeacceptedthecapitalcontributionrightofRMB50millioninJiangsuHoushengNewEnergyTechnologyCo.,Ltd.Indextothecurrentannouncementsaboutthesaidrelated-partytransactionsdisclosed:
| Titleofannouncement | Disclosuredate | Disclosurewebsite |
| AnnouncementonJointAcceptingtheTransferoftheCapitalContributionRightinJiangsuHoushengNewEnergyTechnologyCo.,Ltd.HeldbyChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)withControllingShareholders | 9July2019 | Cninfo |
XVIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Majorguarantees
√Applicable□Notapplicable
(1)Guarantees
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| GuaranteesbetweentheCompanyastheparentanditssubsidiaries | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25December2018 | 2,000 | 25December2018 | 2,000 | Jointliability | 1year | No | No |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 2,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 2,000 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 2,000 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 2,000 | |||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannoun | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| cement | ||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 2,000 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 2,000 | |
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 2,000 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 2,000 | |
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.95% | |||
| Ofwhich: | ||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 0 | |||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 2,000 | |||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |||
| Totalofthethreeamountsabove(D+E+F) | 2,000 | |||
| Explanationonpossibilitytobearjointliabilityduetoundueguarantees(ifany) | N/A | |||
| Explanationontheexternalguaranteesinviolationofstipulatedprocedures(ifany) | N/A | |||
(2)IrregularitiesinProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedtoOtherEntitiesforManagement
(1)CashEntrustedforWealthManagement
√Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
| Specifictype | Capitalresources | Amountincurred | UndueBalance | Overdueamount |
| Brokerfinancialproducts | Self-ownedfunds | 2,850.00 | 1,000.00 | 0.00 |
Particularsofcashentrustedforwealthmanagementwithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedassetmanagement
□Applicable√Notapplicable
(2)EntrustedLoans
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIIICorporateSocialResponsibility(CSR)
1.MeasuresTakentoFulfillCSRCommitmentBytaking"ProvideGreenPowerforABetterLife"asitscorporatemissionand"CustomerFirst,StaffFirst,RewardingShareholdersandBenefitingtheSociety"asitscorevalue,theCompanypaysattentiontotheinterestsofallparties,earnestlyfulfilltheresponsibilitiesandobligationsduetoshareholders,employees,consumers,suppliersandotherparties,activelyshoulderthesocialresponsibilitiesandachievecommondevelopmentwhilemaintainingscientificdevelopmentandsteadyoperation.Afteryearsofpracticeandcontinuousrefinementandsummary,thecompanyhasformedanenterpriseculturesystemof"LoveCountryaswellasLoveFactory,WorkDowntoEarthaswellasGoodatInnovation,StrictinDiscipline,andNobleinEthics",ithasbecomeaqualifiedenterprisecitizen,andstrivestoachievethecoordinationandunitybetweenenterprisedevelopmentandecologicalandenvironmentalprotectionaswellassocialharmony.
I.Adheretostandardoperationandguarantyofinterestsofshareholders.Instrictaccordancewithlaws,regulations,rulesandarticlesofassociation,theCompanyhasestablishedaperfectcorporategovernancestructureandasoundinternalcontrolsystem,anditcontinuouslystrengthenstheriskmanagementandinternalsupervision,andimprovesthescientificcharacterofdecision.Duringthereportingperiod,theCompanyhasstandardizedthedisclosureofinformation,ensuredthesincerity,accuracyandcompletenessofcontent,safeguardedtheshareholders'righttoknow,andprovidedsufficientinvestmentbasistoinvestors.Throughdoingagoodjobinthecarefulorganizationandgoodmanagementofinvestors,smoothandeffectivecommunicationwithshareholdersaswellastheaccurate,complete,fairtreatmentofallshareholders,allshareholdersenjoyfairnessandguaranteedlegitimaterightsandinterestsentitled.
II.Stafffirst,andprotecttherightsandinterestsofworkers.TheCompanysignsthelaborcontractsinaccordancewiththerequirementsoftheLaborLaw,LaborContractLawandotherlawsandregulations,andit
strictlyimplementsthetermsasrequiredincontract,paysthesocialsecurityfortheemployeesandcarriesouttheemployeewelfarephysicalexaminationasrequiredbyregulations,andguaranteestheemployee'sannualleave,marriageleave,maternityleaveandotherleaverightsandinterests;italsotakescareofemployees'familyaffairs,balancestheirworkandlife,andprovidesspiritualcomfortandpracticalhelpatcriticalmoments.TheCompanyattachesgreatimportancetotheprotectionofemployees'rightsandinterests,paysattentiontotalenttraining,devotesitselftothecommondevelopmentofenterprisesandemployees,andstrivestobuildastableandharmoniouslabor-capitalrelationship.
III.Prudenceandintegrity,andsafeguardtherightsandinterestsofconsumers,customersandsuppliers.Byadheringtotheprincipleofintegritymanagement,benefit-sharingandmutualbenefit,andupholdingtheenterpriseethicsof"AdvocatingScience,IntegrityandTrustworthiness",theCompanyhasorganizedtheproductionandoperationactivitiesandproductsalesworks,establishedlong-termstrategicpartnershipwithsuppliersandcustomers,takentheimprovementofproductqualityandconsumersatisfactionasanimportantworkoftheCompany,andrealizeditsownvalueintheprocessofcreatingvaluesforconsumers.Thecompanyattachesimportancetothecommunicationwiththesuppliers,andgivesprioritytotheselectionofadvancedtechnologyandenvironmentalprotectionproductstohelptheCompany'senergyconservationandenvironmentprotectionduringtheproductionprocess.Intheprocessofcooperatingwithsuppliers,itcarriesoutexperienceexchange,assistssupplierstoimproveproductquality,andhelpssupplierstogrow.Itimprovesservicesaccordingtomarketdemandandresponseandguaranteestherightsandinterestsofcustomers,andcontinuouslyprovidescompleteserviceforthemarket.
IV.Steadyoperationandsustainabledevelopment.Basedonthenationalpoliciesandactualsituation,theCompanytakestheopportunityofemissionstandardupdatingofnon-roadmachineryandruralconstructiontopromotetheresearchanddevelopmentofagriculturalmachineryproductsandspeedsupproductupdating,andpromotesthesupportingapplicationofproducts.TheCompanyhascontinuouslyimplementedthemeasuresofenergyconservationandemissionreduction,improvedtheefficiencyofenergyutilization,andachievedremarkableresultsincostandexpenditurereduction,andithaspromotedtheCompanytocontinuouslyimproveitsgovernancesystemandenhanceitsmanagementlevel.Underthesupportofrelevantgovernmentdepartments,theCompanyproceedstheconstructionofindustrialparksinaccordancewithurbanplanninginanorderlymannertoformindustrialagglomerationfortheimplementofurbanplanningandagreenandharmoniouslivingenvironment.
V.Supportsocialwelfareactivitiesandgivebacktothesociety.Inrecentyears,theCompanyhastakenanactivepartinthelocalpublicwelfareactionweekanddonatedmoneytohelpneedyresidentseveryyear.Overthepastyears,theCompanyhasorganicallycombinedeconomicdevelopmentwithsocialcontribution,activelycarriedoutvariouspublicwelfareactivitiessuchasassisting"Agriculture,RuralAreas,andRuralResidents",caringstudents,voluntaryblooddonation,voluntaryservice,energyconservationandenvironmentalprotection,earnestlyfulfilledenterprisesocialresponsibility,andmadeduecontributionstotheharmoniousandstabledevelopmentofsocietywithitspracticalactions.
2.MeasuresTakenforTargetedPovertyAlleviationTheCompanydidn’ttakeanytargetedmeasurestohelppeopleliftthemselvesoutofpovertyduringtheReportingPeriod,nosubsequentplantemporarilytoo.
3.IssuesRelatedtoEnvironmentalProtectionIndicatebytickmarkwhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities.No
TheCompanyanditssubsidiariesarenotthemajorpolluteridentifiedbytheenvironmentalprotectionauthoritiesofChinaduringtheReportingPeriod.TheCompanyattachesgreatimportancetotheworkofenvironmentalprotection,andrequiresthesubsidiariestobuildcorrespondingenvironmentalprotectionfacilitiesaccordingtotheactualsituationofproductionandoperation,strictlycontrollingthepollutants,like“wastegas,wastewater,andwasteresidue”generatedfromtheproductionprocess.
XIXOtherSignificantEvents
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XXSignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIShareChangesandShareholderInformationI.ShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 0 | 0.00% | 0 | 0.00% | |||||
| 1.Sharesheldbythestate | 0 | 0.00% | 0 | 0.00% | |||||
| 2.Sharesheldbystate-ownLegal-person | 0 | 0.00% | 0 | 0.00% | |||||
| 3.Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0.00% | |||||
| Amongwhich:sharesheldbydomesticlegalperson | 0 | 0.00% | 0 | 0.00% | |||||
| Sharesheldbydomesticnaturalperson | 0 | 0.00% | 0 | 0.00% | |||||
| 4.Overseashareholdings | 0 | 0.00% | 0 | 0.00% | |||||
| Amongwhich:sharesheldbyoversealegalperson | 0 | 0.00% | 0 | 0.00% | |||||
| Sharesheldbyoverseanaturalperson | 0 | 0.00% | 0 | 0.00% | |
| II.Unrestrictedshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% | |
| 1.RMBordinaryshares | 411,374,326 | 73.28% | 411,374,326 | 73.28% | |
| 2.Domesticallylistedforeignshares | 150,000,000 | 26.72% | 150,000,000 | 26.72% | |
| 3.Overseaslistedforeignshares | 0 | 0.00% | 0 | 0.00% | |
| 4.Other | 0 | 0.00% | 0 | 0.00% | |
| III.Totalshares | 561,374,326 | 100.00% | 561,374,326 | 100.00% |
Reasonsforsharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchases:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
□Applicable√NotapplicableII.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable√Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable
3.ExistingStaff-HeldShares
□Applicable√Notapplicable
IIIShareholdersandActualController
1.ShareholdersandTheirShareholdingsatthePeriod-End
Unit:share
| Numberofordinaryshareholders | 50,382 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 48,072 | Numberofpreferredshareholderswithresumedvotingrights | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport | 0 | |||||||
| 5%orgreatershareholdersortop10shareholders | ||||||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
| Status | Shares | |||||||||||||
| ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 30.43% | 170,845,236 | 170,845,236 | ||||||||||
| KGIAsiaLimited | Foreignlegalperson | 0.57% | 3,189,845 | 3,189,845 | ||||||||||
| LeiYanqin | Domesticnaturalperson | 0.39% | 2,181,447 | 2,181,447 | ||||||||||
| GaoFenhuai | Domesticnaturalperson | 0.35% | 1,950,000 | 1,950,000 | ||||||||||
| HuWenyong | Domesticnaturalperson | 0.28% | 1,561,866 | 1,561,866 | ||||||||||
| HuangGuoliang | Domesticnaturalperson | 0.27% | 1,528,891 | 1,528,891 | ||||||||||
| LiSuinan | Domesticnaturalperson | 0.27% | 1,507,800 | 1,507,800 | ||||||||||
| ZhouYong | Domestic | 0.27% | 1,500,000 | 1,500,000 | ||||||||||
| naturalperson | |||||||||
| XueHong | Domesticnaturalperson | 0.23% | 1,310,900 | 1,310,900 | |||||
| TaoXiaofang | Domesticnaturalperson | 0.22% | 1,230,000 | 1,230,000 | |||||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue | N/A | ||||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||||||||
| Top10unrestrictedshareholders | |||||||||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |||||||
| Type | Shares | ||||||||
| ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMBordinaryshares | 170,845,236 | ||||||
| KGIAsiaLimited | 3,189,845 | Domesticallylistedforeignshares | 3,189,845 | ||||||
| LeiYanqin | 2,181,447 | RMBordinaryshares | 2,181,447 | ||||||
| GaoFenhuai | 1,950,000 | RMBordinaryshares | 1,950,000 | ||||||
| HuWenyong | 1,561,866 | Domesticallylistedforeignshares | 1,561,866 | ||||||
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshares | 1,528,891 | ||||||
| LiSuinan | 1,507,800 | Domesticallylistedforeignshares | 1,507,800 | ||||||
| ZhouYong | 1,500,000 | RMBordinaryshares | 1,500,000 | ||||||
| XueHong | 1,310,900 | Domesticallylistedforeignshares | 1,310,900 | ||||||
| TaoXiaofang | 1,230,000 | RMBordinaryshares | 1,230,000 | ||||||
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestricted | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||||||||
| publicshareholdersandtop10shareholders | |
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading | TheshareholdersLeiYanqinandGaoFenhuairespectivelyheld2,017,347sharesand1,950,000sharesoftheCompanythroughtheircreditaccounts. |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√No
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyalocalstate-ownedlegalpersonTypeofthecontrollingshareholder:legalperson
| Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| ChangzhouInvestmentGroupCo.,Ltd | ChenLimin | 20June2002 | 91320400467283980X | Propertyinvestmentandmanagement |
| Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | None | |||
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Localinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| State-ownedAssetsSupervisionandAdministrationCommissionof | LiuYuedong | 01411025-1 | Notapplicable |
| ChangzhouMunicipalPeople’sGovernment | |
| OtherlistedcompaniesathomeorabroadcontrolledbytheactualcontrollerintheReportingPeriod | None |
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
AccordingtothedocumentofChangzhouMunicipalPeople'sGovernment(CZF[2006]No.62]),thecontrollingshareholderChangzhouInvestmentGroupCo.,Ltd.istheenterprisetoperformtheinvestorrolefortheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmentasauthorizedbyChangzhouMunicipalPeople’sGovernment.Thus,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmentistheactualcontrolleroftheCompany.IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
5.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
□Applicable√Notapplicable
PartVIIPreferredShares
□Applicable√NotapplicableNopreferredsharesintheReportingPeriod.
PartVIIIConvertibleCorporateBonds
□Applicable√NotapplicableNoconvertiblecorporatebondsintheReportingPeriod.
PartIXDirectors,Supervisors,SeniorManagementandStaffIChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Endingshareholding(share) |
| ShiXinkun | ChairmanoftheBoard | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
| HeJianguang | ViceChairmanoftheBoard | Former | Male | 56 | 18October2016 | 29January2019 | 0 |
| ZhangXin | Director,GeneralManager | Incumbent | Male | 54 | 18October2016 | Uptonow | 0 |
| ShiJianchun | Director,Vice-generalManager | Incumbent | Male | 58 | 18October2016 | Uptonow | 0 |
| LinTian | Director | Incumbent | Male | 57 | 17December2018 | Uptonow | 0 |
| ZhangQiong | Director | Incumbent | Female | 62 | 18October2016 | Uptonow | 0 |
| LiMinghui | Independentdirector | Incumbent | Male | 46 | 18October2016 | Uptonow | 0 |
| JiaBin | Independentdirector | Incumbent | Male | 42 | 18October2016 | Uptonow | 0 |
| FengGenfu | Independentdirector | Incumbent | Male | 63 | 18October2016 | Uptonow | 0 |
| YinLihou | Vice-generalManager | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
| XuYi | Vice-generalManager | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
| LiuXiaoyun | Vice-generalManager | Incumbent | Male | 58 | 18October2016 | Uptonow | 0 |
| WeiJinxiang | Vice-generalManager | Incumbent | Male | 57 | 18October2016 | Uptonow | 0 |
| NiMingliang | ChairmanoftheSupervisoryCommittee | Incumbent | Male | 53 | 18October2016 | Uptonow | 0 |
| ZhuMin | Supervisor | Incumbent | Male | 56 | 18October2016 | Uptonow | 0 |
| XieGuozhong | Supervisor | Incumbent | Male | 51 | 18October2016 | Uptonow | 0 |
| LuZhonggui | Supervisor | Incumbent | Male | 53 | 18October2016 | Uptonow | 0 |
| LiuYi | Supervisor | Incumbent | Male | 51 | 18October2016 | Uptonow | 0 |
| HeJianjiang | SecretaryoftheBoard | Incumbent | Male | 41 | 18October2016 | Uptonow | 0 |
| Total | -- | -- | -- | -- | -- | -- | 0 |
IIChangeofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
IIIBiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
ShiXinkun:Nowheactsasvice-presidentofChangzhouInvestmentGroupCo.,Ltd.,theChairmanoftheBoardandPartySecretaryintheCompanyandthedirectorinJiangsuHoushengNewEnergyTechnologyCo.,Ltd.ZhangXin:HesuccessivelytookthepostsofSalesManager,GeneralManagerAssistant,andvice-generalmanagerinourcompany.Now,heactsasDirector,GeneralManager,deputyPartySecretaryoftheCompanyandexecutivedirectorofJiangsuChangchaiMachineryCo.,Ltd.ShiJianchun:HesuccessivelyactedasPartySecretary,Director,Vice-generalManagerandSecretaryoftheBoardoftheCompany.NowheistheDirector,Vice-generalManagerandChairmanoftheBoardofHoushengInvestmentCo.,Ltd.
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| HeJianguang | ViceChairmanoftheBoard | Left | 29January2019 | Jobtransfer |
LinTian:HesuccessivelyworkedasdeputydirectorofenterprisedevelopmentDept.,GMofinvestmentmanagementDept.IIandI,assistantpresidentinChangzhouInvestmentGroupCo.,Ltd.Nowheisthevicepresident,directorofChangzhouInvestmentGroupCo.,Ltd.,andthedirectoroftheCompany.ZhangQiong:ShesuccessivelyactedasLecturerandAssociateProfessorinDepartmentofLawofAnhuiUniversity,DeputyDirectorofIntellectualPropertyOfficeandDirectorofLegalAffairsOfficeinShenzhenHuaweiTechnologiesCo.,Ltd,SeniorManager,AssistantSecretaryGeneralofShenzhenInnovationInvestmentGroupLtd,Director,GeneralManager,andconsultantofAnhuiHongtuVentureCapitalCo.,Ltd.Now,sheworksasthesupervisorofSynergeticFundsManagementLimited,andthedirectoroftheCompany.FengGenfu:heheldthepostofDeanofInstituteofEconomicsandFinanceinXi’anJiaotongUniversity.Now,heisProfessorandDoctoralAdvisorofInstituteofEconomicsandFinanceinXi’anJiaotongUniversity,andindependentDirectorofDatangInternationalPowerGenerationCo.,Ltd.,ChinaSecuritiesCo.,Ltd,HuarenPharmaceuticalCo.,Ltd.,Xi’AnShaanguPowerCo.,Ltd.andtheCompany.LiMinghui:HeactedasLecturerandAssociateProfessorofSchoolofAccountinginXiamenUniversity,AssociateProfessorandProfessorofSchoolofAccountinginNanjingUniversityBusinessSchool.NowheistheDoctoralSupervisorofSchoolofAccountinginNanjingUniversityBusinessSchool,independentdirectorofBaoshengScience&TechnologyInnovationCo.,Ltd,NanjingSecuritiesCo.,Ltd,andGCLPower(Group)Co.,Ltd.,andindependentdirectoroftheCompany.JiaBin:HesuccessivelyactedastheDeputyDirectorofNo.1ResearchofficeinTianjinResearchInstituteofInternalCombustionEngine,nowheactsastheDirectorofNo.1ResearchofficeinTianjinResearchInstituteofInternalCombustionEngineandSecretary-generalofCICEIASmallGasolineEngineBranch,andindependentdirectoroftheCompany.YinLihou:HeworkedasMinisterofHumanResourcesDepartmentandGeneralManagerAssistant.NowheactsasDeputyGeneralManageroftheCompany,andtheChairmanoftheBoardofChangchaiRobin.XuYi:HesuccessivelytookthepostsofDirectorofTechnicalCenterandGeneralManagerAssistant.NowheisVice-generalManageroftheCompany.LiuXiaoyun:HesuccessivelyactedasMulti-cylinderEngineFactoryDirector,MinisterofPurchaseDepartment,andGeneralManagerAssistantintheCompany.NowheactsasDeputyGeneralManageroftheCompany.WeiJinxiang:HesuccessivelyheldthepostsofDepartmentDirectorofQualityAssuranceDepartment,GeneralManagerAssistantoftheCompany.NowheactsasDeputyGeneralManageroftheCompany,andthechairmanofChangchaiWanzhou,ChangchaiBenniu,andHoushengAgriculturalEquipment.NiMingliang:NowheactsasDeputyPartySecretary,SecretaryofCommission,ChairmanofLaborUnionandChairmanoftheSupervisory.ZhuMin:NowheactsasthePrincipalStaffMemberofOrganizationandPersonnelDivisionofChanzhouAuditBureauandsupervisoroftheCompany.XieGuozhong:NowheactsasGeneralManagerAssistantoftheCompany,GeneralManagerandSecretaryofPartyGeneralBranchoftheSalesCompany,andSupervisoroftheCompanyandDirectorofHoushengAgricultureEquipment.LuZhonggui:NowheactsasMinisterofpoliticalDepartmentoftheCompany,OfficeDirector,SecretaryofOrganPartyGeneralBranchaswellasemployeesupervisoroftheCompany.LiuYi:HesuccessivelytookthepostsofAssistantMinisterofEnterpriseManagementDepartment.NowheactsasDeputyDirectorofAuditDepartmentandSupervisoroftheCompanyandSupervisorofChangchaiWanzhouandChangchaiMachinery.HeJianjiang:HesuccessivelyactedastheSectionMember,AssistantMinister,ViceMinisterofInvestmentandDevelopmentDepartment,RepresentativeofSecuritiesintheCompany.NowheisSecretaryoftheBoardand
MinisterofInvestmentandDevelopmentDepartmentinourCompany,andDirectorofHoushengInvestment,ChangchaiRobin,HoushengAgriculturalEquipment,andChangchaiWanzhou.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
| LinTian | ChangzhouInvestmentGroupCo.,Ltd. | Vicepresident,director | December2017 | Yes | |
| Notes | Now,heisthevicepresidentanddirectorofChangzhouInvestmentGroupCo.,Ltd. | ||||
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| ZhangQiong | SynergeticFundsManagementLimited | Supervisor | Yes | ||
| LiMinghui | NanjingUniversity | DoctoralSupervisor | 1April2012 | Yes | |
| BaoshengScience&TechnologyInnovationCo.,Ltd | IndependentDirector | 3December2014 | May2019 | ||
| NanjingSecuritiesCo.,Ltd | IndependentDirector | 12May2016 | |||
| JiangsuFastenCo.,Ltd | IndependentDirector | 20April2015 | November2019 | ||
| GCLPower(Group)Co.,Ltd. | IndependentDirector | 18June2019 | |||
| JiaBin | TianjinResearchInstituteofInternalCombustionEngine | theDirectorofNo.1Researchoffice | 1March2009 | Yes | |
| ChinaInternalCombustionEngineIndustryAssociation | Secretary-generalofCICEIASmallGasolineEngineBranch. | 1November2011 | |||
| FengGenfu | InstituteofEconomicsandFinanceinXi’anJiaotongUniversity | ProfessorandDoctoralAdvisor | 1March2016 | Yes |
| DatangInternationalPowerGenerationCo.,Ltd. | IndependentDirector | 30June2016 | January2020 | ||
| ChinaSecuritiesCo.,Ltd. | IndependentDirector | 15May2015 | |||
| HuarenPharmaceuticalCo.,Ltd. | IndependentDirector | 28August2019 | |||
| Xi’AnShaanguPowerCo.,Ltd. | IndependentDirector | 19December2019 | |||
| Notes | None | ||||
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√NotapplicableIVRemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
In2019,themonthlysalariesofdirectors,supervisorsandseniorexecutivesintheCompanywereinlinewiththestipulationsofrelevantsalarymanagementandgradestandards,andthebenefitsoftheCompanyandassessmentresults.TheDirectorLinTianobtainedsalariesinshareholders'entities.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
| Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
| ShiXinkun | ChairmanoftheBoard | Male | 56 | Incumbent | 79.18 | No |
| ZhangXin | Director,GeneralManager | Male | 54 | Incumbent | 79.18 | No |
| ShiJianchun | Director,Vice-generalManager | Male | 58 | Incumbent | 79.18 | No |
| LinTian | Director | Male | 57 | Incumbent | 0 | Yes |
| ZhangQiong | Director | Female | 62 | Incumbent | 0 | No |
| LiMinghui | Independentdirector | Male | 46 | Incumbent | 5 | No |
| JiaBin | Independent | Male | 42 | Incumbent | 5 | No |
| director | ||||||
| FengGenfu | Independentdirector | Male | 63 | Former | 5 | No |
| YinLihou | Vice-generalManager | Male | 56 | Incumbent | 68.67 | No |
| XuYi | Vice-generalManager | Male | 56 | Incumbent | 69.14 | No |
| LiuXiaoyun | Vice-generalManager | Male | 58 | Incumbent | 69.14 | No |
| WeiJinxiang | Vice-generalManager | Male | 57 | Incumbent | 67.73 | No |
| NiMingliang | ChairmanoftheSupervisoryCommittee | Male | 53 | Incumbent | 69.14 | No |
| ZhuMin | Supervisor | Male | 56 | Incumbent | 0 | No |
| XieGuozhong | Supervisor | Male | 51 | Incumbent | 54.17 | No |
| LuZhonggui | Supervisor | Male | 53 | Incumbent | 17.01 | No |
| LiuYi | Supervisor | Male | 51 | Incumbent | 18.14 | No |
| HeJianjiang | SecretaryoftheBoard | Male | 41 | Incumbent | 40.45 | No |
| Total | -- | -- | -- | -- | 726.13 | -- |
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
√Applicable□NotapplicableVEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparent | 2,440 |
| Numberofin-serviceemployeesofmajorsubsidiaries | 570 |
| Totalnumberofin-serviceemployees | 3,010 |
| TotalnumberofpaidemployeesintheReportingPeriod | 3,010 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 1,992 |
| Sales | 226 |
| Technical | 360 |
| Financial | 39 |
| Administrative | 308 |
| Other | 85 |
| Total | 3,010 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Juniorhighschoolgraduatesandbelow | 1,356 |
| Highschoolgraduates | 852 |
| Collegegraduatesandtechnicalsecondaryschoolgraduates | 525 |
| Bachelors | 259 |
| Mastersandabove | 18 |
| Total | 3,010 |
PartXCorporateGovernanceIGeneralInformationofCorporateGovernance
IntheReportingPeriod,theCompanywasstrictlyinlinewithlaws,statutessuchasCompanyLaw,SecuritiesLaws,CodeofCorporateGovernanceofListedCompanies,GuideOpiniononEstablishmentofIndependentDirectorSystembyListedCompaniesandGuidelinesonInternalControlsofListedCompaniesandsoon,continuouslyperfectedcorporategovernance,establishedandaccomplishedinternalmanagementandcontrolsystem,consistentlyanddeeplyputforwardcorporategovernanceactivities,soastofurthernormalizedoperationoftheCompany,raisingcorporategovernancelevel,layingaguardforsteadyandhealthydevelopmentoftheCompany,protectlegalrightsandinterestsoftheCompanyandallshareholders.
TheCompanypromulgatedorrevisedaseriesofinternalcontrolsystemthroughallaspectsofnormaloperationandmanagementactivitiesinaccordancewitheachnationallawsandregulations,characteristicsoftheindustry,operationandself-managingbusiness,andimproveditcontinuously,andfinallyformedanormativemanagementsystem.Andformulatedaseriesofmanagementsystem,processandstandardcoveredeachoperationlinkandlevelofthefinancialassetscontrol,humanresourcesmanagement,qualityenvironmentmanagementandinternalauditsupervisoretc.,whichensuredalltheworkhadrulestofollow.IndicatebytickmarketwhetherthereisanymaterialincompliancewiththeregulatorydocumentsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.
IITheCompany’sIndependencefromItsControllingShareholderinBusiness,Personnel,Asset,OrganizationandFinancialAffairs
TheCompanywastotallyindependentfromthecontrollingshareholderChangzhouInvestmentGroupCo.,Ltdintermsofassets,business,personnel,organizationandfinancing,withindependent&completebusinessandcapabilitytooperateindependently.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
| The2018AnnualGeneralMeeting | AnnualGeneralMeeting | 0.01% | 16May2019 | 17May2019 | 2019-019 |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√Notapplicable
VPerformanceofDutybyIndependentDirectorsintheReportingPeriod
1.AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofindependentdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Independentdirector | Totalnumberofboardmeetingstheindependentdirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingstheindependentdirectorfailedtoattend | Theindependentdirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| LiMinghui | 9 | 2 | 7 | 0 | 0 | No | 1 |
| FengGenfu | 9 | 2 | 7 | 0 | 0 | No | 1 |
| JiaBin | 9 | 2 | 7 | 0 | 0 | No | 1 |
2.ObjectionsRaisedbyIndependentDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranyindependentdirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
3.OtherInformationaboutthePerformanceofDutybyIndependentDirectorsIndicatebytickmarkwhetheranysuggestionsfromindependentdirectorswereadoptedbytheCompany.
√Yes□NoSuggestionsfromindependentdirectorsadoptedornotadoptedbytheCompany:
TheindependentdirectorsoftheCompanyinlinewiththelaw,rules,normativedocumentsandobligationsgivenbytheCompanyoftheCompanylaw,ArticleofAssociationsandIndependentDirectorsWorkRules,comprehensivelyfocusedonthedevelopmentandoperationoftheCompany,activelyattendedthegeneralmeetingofshareholderandmeetingofboardofdirectors,andgivenindependentopinionsforthesignificant
eventsoftheCompany,andeffectivelymaintainedtheprofitsoftheCompanyandalltheshareholders.TheCompanyactivelylistenedtothesuggestionsfromtheindependentdirectorsuponthesignificanteventsandadoptedthem.
VIPerformanceofDutybySpecializedCommitteesundertheBoardintheReportingPeriod
1.SummaryReportonResponsibilityPerformanceoftheAuditCommitteeundertheBoardofDirectors:
DuringtheReportingPeriod,theAuditCommitteeundertheBoardofDirectorsperformeditsdutyaccordingtothediligentandresponsibleprinciple,basedonrelevantregulationssuchastheCompanyLaw,theGuidelinesforCorporateGovernanceofListedCompanies,theArticlesofAssociationaswellasprovisionsintheEnforcementRegulationoftheAuditCommitteeundertheBoardofDirectoroftheCompany.
(1)MajorworkofAuditCommitteeinReportingPeriod:
1)PeriodicallyexaminedtheworkingplanandexecutionofinnercontroloftheCompany;
2)CommunicatedfullywiththeCPAsfirmonplanandcontentofaudit;
3)UrgedtheCPAsfirmtosummitreportasscheduled;
4)TheAuditCommitteereviewedthefinancialstatementsoftheCompanybeforetheauditandaftertheissuanceofpreliminaryopinionbytheCPAsfirm.AfteritcommunicatedwiththeCPAsfirmonsomeimportantitemsaswellasmajoraccountingestimationitems,auditadjustmentitemsandimportantaccountingpolicieswhichwerelikelytohavepotentialinfluenceonthefinancialstatements,itconsideredthatthefinancialstatementsreflectedtheoverallsituationoftheCompanyauthentically,accuratelyandcompletely.
5)SubmittedthesummaryreportonannualauditoftheCompanyconductedbytheCPAsfirmtotheBoardofDirectors;
6)AdvisedtocontinuetheappointmentofGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)astheauditinstitutionoftheCompanyin2020.
(2)WrittenopinionsonfinancialstatementsoftheCompanyissuedbytheAuditCommittee
1)On20March2020,theAuditCommitteetheAuditCommitteeexaminedthefinancialstatementsoftheCompanyafterthecertifiedpublicaccountantshadissuedthepreliminaryopiniononthestatements,andissuedawrittenopinionasfollows:ThefinancialstatementsoftheCompanywerepreparedinaccordancewiththeNewAccountingStandardsforEnterprisesandrelevantfinancialrulesoftheCompany,andfaithfullyreflectedthefinancialpositionoftheCompany,aswellasthebusinessresultsandcashflowsin2019inallmaterialaspects.
2)Withregardtotheauditedfinancialstatements2019,on9April2020,theAuditCommitteemadethefollowingresolution:theAuditCommitteereviewedthefinancialstatements2019auditedbyauditors,andbelievedthatthesaidfinancialstatementsfaithfullyreflectedthefinancialpositionoftheCompanyasat31December2019,aswellasthebusinessresultsandcashflowsin2019inallmaterialaspects.ItagreedtosubmitthestatementstotheBoardofDirectorsforexaminationandapproval.
(3)SummaryreportontheauditworkconductedbytheCPAsfirmin2019:
AccordingtotheannualauditplanjointlyformulatedbytheAuditCommitteeandGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership),auditorscommunicatedfullywiththemanagementpersonneloftheCompanyandmembersoftheAuditCommitteeontheconsolidationoffinancialstatements,accountingadjustment,accountingpolicyandotheraccountingworkneededtobeimproved,whichhelpedbothpartiesacquireadeeperunderstandingabouttheoperation,financialprocessandimplementationoftheNewAccountingStandardsforBusinessEnterprisesintheCompany.Withsuchunderstanding,theannualauditaccountantswouldmakemorematurejudgmenttoissueafairauditconclusion.
TheAuditCommitteeheldthattheCPAsfirmconductedtheauditstrictlyinaccordancewithprovisionsstipulatedintheIndependentAuditingStandardsforCPAsofthePRC.Thetimeofauditwassufficient,andtheauditorswithexcellentabilitytopracticeweredeployedreasonably.Theissuedauditor’sreportfullyreflectedthefinancialpositionoftheCompanyasat31December2019,aswellasthebusinessresultsandcashflowsin2019,andtheauditconclusionwasinlinewiththeactualsituationoftheCompany.
(4)ResolutionletteronrenewingtheemploymentoftheCPAsfirm:
TheAuditCommitteeconvenedameetingon9April2020toreviewthematterconcerningtheemploymentofaCPAsfirmfortheauditin2020,andthereviewopinionwasasfollows:
GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)hadaccomplishedtheauditoftheCompany2018,andtheauditor’sreportreflectedtheactualfinancialstatusoftheCompanyin2019objectivelyandfairly.
TheAuditCommitteewassatisfiedwiththeauditconductedbyGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)anddecidedtocontinuetoengageitastheauditinstitutionoftheCompanyin2020.Thesaidproposalwasagreedtobesubmittedtothe24
thMeetingofthe8
thBoardofDirectorsforreview.
2.SummaryReportonResponsibilityPerformanceofRemuneration&AppraisalCommitteeundertheBoardofDirectors:
TheRemuneration&AppraisalCommitteeundertheBoardofDirectorswascomposedof3Directors,including2IndependentDirectorsand1InnerDirector.AndoneoftheIndependentDirectorsassumedthepositionofChairmanoftheCommittee.
IntheReportingPeriod,theRemuneration&AppraisalCommitteeraisedtheproposalonimplementingtheappraisalofseniorexecutivesin2019,basedonthefulfillmentofthemainfinancialindicatorsandoperationtargetsin2019,whichweredeterminedintheContractforAppraisalofSeniorExecutivesin2019.
IntheReportingPeriod,basedonrelevantregulationsandrules,theRemuneration&AppraisalCommitteeexaminedtheremunerationoftheCompany’sseniorexecutivesin2019andissuedopinionsasfollows:
TheRemuneration&AppraisalCommitteeheldthat,theremunerationoftheCompany’sseniorexecutivesin2019wasinaccordancewithprovisionsintheContractforAppraisalofSeniorExecutivesin2019,aswellasthelaws,regulationsandrulesoftheCompany.
VIIPerformanceofDutybytheSupervisoryCommitteeIndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.VIIIAppraisalofandIncentiveforSeniorManagement
TheCompanyhasestablishedafairandobjectiveperformanceappraisalandincentiverestraintmechanismforseniormanagementstaffs.Theannualremunerationofseniormanagementstaffsconsistedofthebasicannualsalaryandperformanceappraisalbonus,andthebasicannualsalarywasdistributedmonthlywithacertainproportion,whiletheperformanceappraisalbonuswasdistributedafterbeingappraisedaccordingtotheappraisalschemeforseniormanagementstaffssignedbetweentheBoardofDirectorsandthemanagersforeachyear.
IXInternalControl
1.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
2.InternalControlSelf-EvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 11April2020 |
| Indextothedisclosedinternalcontrolself-evaluationreport | 2020-013 |
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 100.00% | |
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 100.00% | |
| Identificationstandardsforinternalcontrolweaknesses | ||
| Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting |
| Naturestandard | TheCompanyclassifiedthedefectsasseriousdefect,importantdefectandgeneraldefectaccordingtotheinfluencedegreefromtheinternalcontrol:(1)Seriousdefect:referstooneormultiplegroupswithcontroldefectwhichmayleadtheenterpriseseriouslydeviatesthecontroltarget;(2)Importantdefect:referstooneormultiplegroupswithcontroldefectwiththeseverityandtheeconomicresultslowerthanthegreatdefectbutmaystillleadtheenterpriseseriouslydeviatesthecontroltarget;(3)Generaldefect:referstootherdefectexceptforthegreatdefectandsignificantdefect.Naturestandards:defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)thedefectinvolveswiththemalpracticeoftheDirectors,SupervisorsandSeniorExecutives;2)revisedthedisclosedfinancialreport;3)CPAsdiscoveredthegreatmisstatementamongthecurrentfinancialstatementwhilewhichcouldnotbefoundduringtheoperatingprocessoftheinternalcontrol;4)thesupervisionfromtheAuditCommitteeandtheinternalauditinstitutionoftheenterprisewasinvalid. | Defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)Seriouslyviolatedthenationallawsandadministrativeregulationsandthenormativedocuments;2)“threesignificantonegreat”eventhadnotbeenthroughthecollectivedecision-makingprocess;3)thesignificanteventsinvolvedwiththeproductionandoperationoftheCompanylackedofsystematiccontrolortheinstitutionalsystemwasinvalid;4)theinternalcontroloftheinformationdisclosurewasinvalid,whichledtheCompanybeopencondemnedbythesupervisiondepartment;5)theseriousdefectfromtheassessmentresultsoftheinternalcontrolhadnotbeenrevised. |
| Quantitativestandard | Quantitativestandards:Thequantitativestandardsofrecognizingthesignificantdegreeofthemisstatement(includingthefalsenegatives)oftheconsolidatedfinancialreportoftheCompany | Refertothequantitativecriteriaoftheinternalcontroldefectofthefinancialreport,torecognizethequantitativecriteriaofthesignificantdegreeoftheinternalcontroldefectofthe |
| basedonthedatafromthe2019consolidatedstatementswasas:Seriousdefect:misstatement≥5%oftheannualprofitsImportantdefect:2.5%oftheannualprofits≤misstatement＜5%oftheannualprofitsGeneraldefect＜2.5%oftheannualprofits | non-financialreportoftheCompanyas:Seriousdefect:possiblycauseddirectlylosses≥0.1%ofthenetassetsImportantdefect:0.05%ofthenetassets≤possiblycauseddirectlylosses＜0.1%ofthenetassetsGeneraldefect:possiblycauseddirectlylosses＜0.05%ofthenetassets | |
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
XIndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
| WebelievedthatChangchaiCompany,LimitedmaintainedeffectiveinternalcontrolofthefinancialreportinsignificantaspectsaccordingtotheBasicNormsofInternalControlandrelevantregulationson31December2019. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 11April2020 |
| Indextosuchreportdisclosed | 2020-013 |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√No
Indicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□No
2.EmployeeRemunerationPolicy
TheCompanyalwaysadheredtotheprincipleoftiltingtheremunerationincentivemechanismtowardsexcellenttalents,soastodisplaytherolesofvariousprofessionaltechnicians,managementstaffsandskilledbackbones.Besides,itadheredtotheprincipleofincreasingtheemployee’sincomeintegratedwithincreasinglaborproductionefficiencyandproduction&operationefficiency,soastoperfectthesalarystructureandfurtherincreaseemployees’incomesteadily.
3.EmployeeTrainingPlans
TheCompanyestablishedtheManagementRulesontheEducation&TrainingforEmployees,aimingtoenhanceemployees’qualityandtryitsbesttocultivateateamoffaithfulandhighlyprofessionaltalents.Besides,itinnovatedthetrainingmechanism,optimizedthetrainingenvironment,andreinforcedtoencourageemployeestoattendvarioustraining,soastoinspiretheemployees’potentialtothemaximumextentandfurtherpromotethesustainabledevelopmentoftheCompany.
4.LaborOutsourcing
□Applicable√Notapplicable
PartXICorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?No.
PartXIIFinancialStatements
IIndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 9April2020 |
| Nameoftheindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
| No.oftheauditor’sreport | SGW[2020]A237 |
| Nameofthecertifiedpublicaccountants | DaiWeizhong,XuWenxiang |
TextoftheIndependentAuditor’sReport
TotheShareholdersofChangchaiCompany,Limited,
IOpinion
WehaveauditedtheaccompanyingfinancialstatementsofChangchaiCompany,Limited.(togetherwithitsconsolidatedsubsidiariesincludedintheconsolidatedfinancialstatements,the“Company”),whichcomprisetheparent’sandconsolidatedbalancesheetsasat31December2019,theparent’sandconsolidatedincomestatements,theparent’sandconsolidatedcashflowstatements,theparent’sandconsolidatedstatementsofchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionofChangchaiCompany,Limited.asat31December2019andtheconsolidatedandparentbusinessperformanceandcashflowfor2019.IIBasisforOpinion
WeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Andkeyauditmatteridentifiedinourauditissummarizedasfollows:
(I)Recognitionofrevenue
1.Descriptionoftheitem
Fordetailsofaccountingpoliciesgoverningrevenuerecognition,pleaserefertotheNoteIII-25RevenueandtheNoteV-37OperatingRevenueandCostofSales.TheoperatingrevenueoftheCompanyin2019isRMB2,040,133,700.
SincetheoperatingrevenueisoneofkeyperformanceindicatorsoftheCompany,andthereistheinherentriskthatthemanagementmaymanipulatethetimingofrevenuerecognitionforthepurposeofachievingcertaingoalsorexpectations,soweidentifytherevenuerecognitionasakeyaudititem.
2.Responseforaudit
(1)Knowthekeyinternalcontrolrelatedtorevenuerecognition,evaluatewhetheritsdesignandexecutionarevalidornot,andtesttheoperationeffectivenessoftherelatedinternalcontrol.
(2)Analyzeandassessthetime-pointoftransferringmajorrisksandrewardsrelatedtorecognitionofsalesrevenuethroughthesamplinginspectionofsalescontractandinterviewswithmanagement,andthenevaluatetherecognitionpoliciesofsalesrevenueoftheCompany.
(3)Checkthesupportingdocumentsrelatedtorevenuerecognition,suchassalescontracts,orderform,invoiceforsales,shippingorder,declarationforexportation,andetc.
(4)Checktheoperatingrevenuerecognizedbeforeandafterthebalancesheetdatetothesupportingdocuments,suchasshippingorder,declarationforexportation,andetcbysamplingmethodtoassesswhethertheoperatingrevenueisrecognizedwithinappropriateperiod.
(5)Implementtheconfirmationbydrawingsampletorecognizethebalanceofaccountsreceivableandtheamountofsalesrevenueaccordingtothefeaturesandnaturesofcustomertransaction.(II)Baddebtprovisionforaccountsreceivable
1.Descriptionoftheitem
PleaserefertotheaccountingpoliciesstipulatedintheNoteIII-10ImpairmentofFinancialAssetsandtheNoteV-4AccountsReceivable.On31December2019,asforaccountsreceivableoftheCompany,thecarryingamountwasRMB668.5874million,thebaddebtprovisionwasRMB249.2917million,andthecarryingvaluewasRMB419.2957million,accountingfor12.03%oftotalassetsattheperiod-end.Thebaddebtofaccountsreceivableduetofailureofrecoveryatmaturityorfailureofrecoverywillgeneratesignificantimpactsonfinancialstatements,thus,weidentifytheimpairmentofaccountsreceivableasakeyaudititem.
2.Responseforaudit
(1)AccessChangchai’sinternalcontrolsystemsofsalesandaccountsreceivablemanagementtounderstandandevaluatethedesignofinternalcontrol,andcarryoutwalk-throughtesttoconfirmtheimplementationofinternalcontrolsystems.
(2)AnalyzeandconfirmthereasonablenessofChangchai’saccountingestimatesofbaddebtprovisionforaccountsreceivable,includingthebasisfordeterminingthecombinationofaccountsreceivable,theexpectedcreditlossrateandthejudgmentofimpairmenttestofaccountsreceivableevaluatedindividually.
(3)Accessandchecktheaccountreceivabledetails,agingschedule,statementofprovisionsforbaddebts,andconfirmthereasonablenessofbaddebtprovisionforaccountsreceivablebycombiningwiththerequestofconfirmationofbalanceandsubsequentcollectioninspection;
(4)Understandthereasonsforaccountsreceivable,checkChangchai’sreconciliationandcollectionduringthereportingperiodandanyotherdatarelatedtopaymentrecovery,verifyandconfirmitsaccountsreceivablewithouttransactiondisputeattheendofthereportingperiod,aswellastheadequacyofbaddebtprovisionforaccountsreceivable.
(5)Sendrequestforconfirmationofbalance,andconfirmtheauthenticityandaccuracyoftheamountofaccountsreceivableonthebalancesheetdatebycombiningwithsubsequentinspectionandotherprocedures.IVOtherInformation
TheCompany’smanagement(hereinafterreferredtoas“management”)isresponsiblefortheotherinformation.TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2019AnnualReportotherthanthefinancialstatementsandourauditor’sreportthereon.
Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.VResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatements
ThemanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VIAuditor’sResponsibilitiesforAuditofFinancialStatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbyCAStodrawusers’attentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatements.Ifsuchdisclosuresareinadequate,weneedtomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheCompanyaudit.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregardingtheplannedscopeandtimingoftheauditandsignificantauditfindings,includinganynoteworthydeficienciesininternalcontrolthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.GongzhengTianyeCertifiedPublicAccountantsChineseCPADaiWeizhong
(SpecialGeneralPartnership)(EngagementPartner)
ChineseCPAXuWenxiangWuxi·China9April2020IIFinancialStatements
Currencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
Unit:RMB
| Item | 31December2019 | 31December2018 |
| Currentassets: | ||
| Monetaryassets | 637,214,006.06 | 800,960,036.69 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 10,000,000.00 | |
| Financialassetsatfairvaluethroughprofitorloss | ||
| Derivativefinancialassets | ||
| Notesreceivable | 606,283,023.05 | 495,370,782.47 |
| Accountsreceivable | 419,295,665.51 | 378,859,159.11 |
| Accountsreceivablefinancing | ||
| Prepayments | 12,930,546.16 | 11,352,297.10 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 10,597,073.18 | 9,244,584.42 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 473,352,010.58 | 557,953,891.70 |
| Contractualassets | ||
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 6,353,920.33 | 34,357,608.97 |
| Totalcurrentassets | 2,176,026,244.87 | 2,288,098,360.46 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | ||
| Available-for-salefinancialassets | 498,851,369.49 | |
| Investmentsinotherdebtobligations | ||
| Held-to-maturityinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 532,886,000.00 | |
| Othernon-currentfinancialassets | 77,952,101.63 | |
| Investmentproperty | 48,447,666.83 | 50,656,007.63 |
| Fixedassets | 457,582,514.13 | 511,250,371.37 |
| Constructioninprogress | 91,358,156.24 | 89,090,384.71 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Userightsassets | ||
| Intangibleassets | 99,699,450.26 | 103,092,879.38 |
| R&Dexpense | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 1,023,856.52 | 979,822.71 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 1,308,949,745.61 | 1,253,920,835.29 |
| Totalassets | 3,484,975,990.48 | 3,542,019,195.75 |
| Currentliabilities: | ||
| Short-termborrowings | 22,000,000.00 | 27,000,000.00 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | ||
| Derivativefinancialliabilities | ||
| Notespayable | 403,035,000.00 | 438,375,400.00 |
| Accountspayable | 525,610,256.89 | 591,754,875.77 |
| Advancesfromcustomers | 30,836,615.21 | 34,500,232.97 |
| Contractualliabilities | ||
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Payrollpayable | 44,559,015.79 | 50,500,592.99 |
| Taxespayable | 9,094,382.58 | 7,066,085.89 |
| Otherpayables | 203,840,127.19 | 199,412,250.90 |
| Including:Interestpayable | 0.00 | 0.00 |
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 18,500,000.00 | |
| Othercurrentliabilities | 1,177,712.38 | 2,082,985.18 |
| Totalcurrentliabilities | 1,240,153,110.04 | 1,369,192,423.70 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | 0.00 | 2,000,000.00 |
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Provisions | ||
| Deferredincome | 58,864,111.22 | 59,928,484.84 |
| Deferredincometaxliabilities | 57,082,890.27 | 47,971,780.36 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 115,947,001.49 | 109,900,265.20 |
| Totalliabilities | 1,356,100,111.53 | 1,479,092,688.90 |
| Owners’equity: | ||
| Sharecapital | 561,374,326.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 164,328,665.43 | 164,328,665.43 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 317,059,775.00 | 264,405,675.00 |
| Specificreserve | 17,560,202.07 | 15,182,958.83 |
| Surplusreserves | 322,226,700.34 | 320,133,050.15 |
| Generalreserve | ||
| Retainedearnings | 726,689,929.10 | 717,883,351.33 |
| TotalequityattributabletoownersoftheCompanyastheparent | 2,109,239,597.94 | 2,043,308,026.74 |
| Non-controllinginterests | 19,636,281.01 | 19,618,480.11 |
| Totalowners’equity | 2,128,875,878.95 | 2,062,926,506.85 |
| Totalliabilitiesandowners’equity | 3,484,975,990.48 | 3,542,019,195.75 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2019 | 31December2018 |
| Currentassets: | ||
| Monetaryassets | 584,957,678.96 | 759,404,219.72 |
| Held-for-tradingfinancialassets | ||
| Financialassetsatfairvaluethroughprofitorloss | ||
| Derivativefinancialassets | ||
| Notesreceivable | 576,948,023.05 | 490,519,795.91 |
| Accountsreceivable | 337,447,538.04 | 300,357,283.81 |
| Accountsreceivablefinancing | ||
| Prepayments | 6,386,284.14 | 4,768,038.11 |
| Otherreceivables | 23,639,899.46 | 21,681,331.85 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 368,653,472.39 | 437,423,195.46 |
| Contractualassets | ||
| Assetsclassifiedasheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 3,898,333.51 | 23,099,858.67 |
| Totalcurrentassets | 1,901,931,229.55 | 2,037,253,723.53 |
| Non-currentassets: | ||
| Investmentsindebtobligations | ||
| Available-for-salefinancialassets | 470,940,000.00 | |
| Investmentsinotherdebtobligations | ||
| Held-to-maturityinvestments | ||
| Long-termreceivables |
| Long-termequityinvestments | 251,752,730.03 | 241,752,730.03 |
| Investmentsinotherequityinstruments | 532,886,000.00 | |
| Othernon-currentfinancialassets | 50,000,000.00 | |
| Investmentproperty | 48,447,666.83 | 50,656,007.63 |
| Fixedassets | 364,071,199.07 | 413,186,680.19 |
| Constructioninprogress | 89,330,161.60 | 87,007,215.91 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Userightsassets | ||
| Intangibleassets | 70,169,770.91 | 72,184,608.63 |
| R&Dexpense | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 970,026.67 | 930,641.19 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 1,407,627,555.11 | 1,336,657,883.58 |
| Totalassets | 3,309,558,784.66 | 3,373,911,607.11 |
| Currentliabilities: | ||
| Short-termborrowings | 5,000,000.00 | 10,000,000.00 |
| Held-for-tradingfinancialliabilities | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | ||
| Derivativefinancialliabilities | ||
| Notespayable | 392,105,000.00 | 425,995,400.00 |
| Accountspayable | 481,854,210.18 | 561,555,397.44 |
| Advancesfromcustomers | 28,673,664.87 | 32,072,387.55 |
| Contractualliabilities | ||
| Payrollpayable | 39,125,477.30 | 43,597,759.22 |
| Taxespayable | 5,952,664.10 | 2,443,767.89 |
| Otherpayables | 191,962,821.35 | 185,022,961.56 |
| Including:Interestpayable | 0.00 | 0.00 |
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 18,500,000.00 | |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 1,144,673,837.80 | 1,279,187,673.66 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Provisions | ||
| Deferredincome | 58,864,111.22 | 59,928,484.84 |
| Deferredincometaxliabilities | 55,951,725.00 | 46,659,825.00 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 114,815,836.22 | 106,588,309.84 |
| Totalliabilities | 1,259,489,674.02 | 1,385,775,983.50 |
| Owners’equity: | ||
| Sharecapital | 561,374,326.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 183,071,147.70 | 183,071,147.70 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 317,059,775.00 | 264,405,675.00 |
| Specificreserve | 17,560,202.07 | 15,182,958.83 |
| Surplusreserves | 322,226,700.34 | 320,133,050.15 |
| Retainedearnings | 648,776,959.53 | 643,968,465.93 |
| Totalowners’equity | 2,050,069,110.64 | 1,988,135,623.61 |
| Totalliabilitiesandowners’equity | 3,309,558,784.66 | 3,373,911,607.11 |
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | 2019 | 2018 |
| 1.Revenue | 2,040,133,717.30 | 2,132,902,718.60 |
| Including:Operatingrevenue | 2,040,133,717.30 | 2,132,902,718.60 |
| Interestincome | ||
| Premiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 1,985,673,605.20 | 2,140,281,299.65 |
| Including:Costofsales | 1,709,649,777.75 | 1,813,444,585.66 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 10,959,071.89 | 12,532,729.68 |
| Sellingexpense | 97,085,117.05 | 126,997,066.87 |
| Administrativeexpense | 106,183,133.40 | 116,027,838.96 |
| R&Dexpense | 66,221,376.27 | 72,182,840.78 |
| Financecosts | -4,424,871.16 | -903,762.30 |
| Including:Interestexpense | 5,722,554.43 | 4,553,608.46 |
| Interestincome | 6,719,990.78 | 4,665,445.23 |
| Add:Otherincome | 5,312,295.51 | 6,291,685.65 |
| Returnoninvestment(“-”forloss) | 7,951,711.61 | 113,270,824.83 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Foreignexchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) |
| Gainonchangesinfairvalue(“-”forloss) | -49,255.00 | |
| Creditimpairmentloss(“-”forloss) | -933,128.89 | |
| Assetimpairmentloss(“-”forloss) | -42,371,202.17 | -37,598,498.08 |
| Assetdisposalincome(“-”forloss) | 2,059,668.56 | 662,151.89 |
| 3.Operatingprofit(“-”forloss) | 26,430,201.72 | 75,247,583.24 |
| Add:Non-operatingincome | 446,345.38 | 1,938,995.76 |
| Less:Non-operatingexpense | 219,341.54 | 1,474,218.49 |
| 4.Profitbeforetax(“-”forloss) | 26,657,205.56 | 75,712,360.51 |
| Less:Incometaxexpense | 1,704,818.55 | 13,545,662.67 |
| 5.Netprofit(“-”fornetloss) | 24,952,387.01 | 62,166,697.84 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 24,952,387.01 | 62,166,697.84 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoownersoftheCompanyastheparent | 24,934,586.11 | 62,021,374.04 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 17,800.90 | 145,323.80 |
| 6.Othercomprehensiveincome,netoftax | 52,654,100.00 | -250,662,875.00 |
| AttributabletoownersoftheCompanyastheparent | 52,654,100.00 | -250,662,875.00 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 52,654,100.00 | |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 52,654,100.00 | |
| 6.1.4Changesinthefairvalueofthecompany’screditrisks | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | -250,662,875.00 |
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | -250,662,875.00 | |
| 6.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 6.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 6.2.7Reserveforcashflowhedges | ||
| 6.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.9Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 77,606,487.01 | -188,496,177.16 |
| AttributabletoownersoftheCompanyastheparent | 77,588,686.11 | -188,641,500.96 |
| Attributabletonon-controllinginterests | 17,800.90 | 145,323.80 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.04 | 0.11 |
| 8.2Dilutedearningspershare | 0.04 | 0.11 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | 2019 | 2018 |
| 1.Operatingrevenue | 1,866,291,739.39 | 1,968,727,065.36 |
| Less:Costofsales | 1,575,626,989.46 | 1,689,706,860.63 |
| Taxesandsurcharges | 8,407,285.53 | 9,550,011.21 |
| Sellingexpense | 89,281,567.68 | 113,219,756.42 |
| Administrativeexpense | 89,269,943.25 | 99,399,032.15 |
| R&Dexpense | 60,705,823.99 | 70,981,785.06 |
| Financecosts | -7,320,351.23 | -2,269,683.27 |
| Including:Interestexpense | 1,974,711.69 | 1,150,062.50 |
| Interestincome | 6,955,017.26 | 4,320,565.70 |
| Add:Otherincome | 3,864,303.74 | 6,156,851.75 |
| Returnoninvestment(“-”forloss) | 6,206,814.50 | 112,464,720.49 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | ||
| Creditimpairmentloss(“-”forloss) | 750,844.30 | |
| Assetimpairmentloss(“-”forloss) | -41,914,242.93 | -33,088,706.77 |
| Assetdisposalincome(“-”forloss) | 2,072,367.71 | 577,265.23 |
| 2.Operatingprofit(“-”forloss) | 21,300,568.03 | 74,249,433.86 |
| Add:Non-operatingincome | 13,825.00 | 1,231,701.78 |
| Less:Non-operatingexpense | 141,118.07 | 1,442,817.89 |
| 3.Profitbeforetax(“-”forloss) | 21,173,274.96 | 74,038,317.75 |
| Less:Incometaxexpense | 236,773.02 | 9,759,917.90 |
| 4.Netprofit(“-”fornetloss) | 20,936,501.94 | 64,278,399.85 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 20,936,501.94 | 64,278,399.85 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) |
| 5.Othercomprehensiveincome,netoftax | 52,654,100.00 | -250,662,875.00 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 52,654,100.00 | |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitpensionschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 52,654,100.00 | |
| 5.1.4Changesinthefairvalueofthecompany’screditrisks | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss | -250,662,875.00 | |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Gain/Lossonchangesinthefairvalueofavailable-for-salefinancialassets | -250,662,875.00 | |
| 5.2.4Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.5Gain/Lossarisingfromthereclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets | ||
| 5.2.6Allowanceforcreditimpairmentsininvestmentsinotherdebtobligations | ||
| 5.2.7Reserveforcashflowhedges | ||
| 5.2.8Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.9Other | ||
| 6.Totalcomprehensiveincome | 73,590,601.94 | -186,384,475.15 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2019 | 2018 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,172,685,126.88 | 2,425,197,716.22 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 42,607,617.45 | 57,089,558.17 |
| Cashgeneratedfromotheroperatingactivities | 11,679,968.90 | 12,322,331.45 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,226,972,713.23 | 2,494,609,605.84 |
| Paymentsforcommoditiesandservices | 1,820,127,110.80 | 1,748,699,087.54 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts |
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 286,479,391.58 | 321,746,157.63 |
| Taxespaid | 19,775,735.08 | 33,740,896.03 |
| Cashusedinotheroperatingactivities | 121,133,333.29 | 116,603,937.75 |
| Subtotalofcashusedinoperatingactivities | 2,247,515,570.75 | 2,220,790,078.95 |
| Netcashgeneratedfrom/usedinoperatingactivities | -20,542,857.52 | 273,819,526.89 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 11,201,882.58 | 43,589,736.75 |
| Returnoninvestment | 8,488,216.45 | 113,425,932.70 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 326,835.85 | 979,093.38 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 20,016,934.88 | 157,994,762.83 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 39,198,814.48 | 18,482,660.75 |
| Paymentsforinvestments | 58,980,496.31 | 33,293,147.06 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 98,179,310.79 | 51,775,807.81 |
| Netcashgeneratedfrom/usedininvestingactivities | -78,162,375.91 | 106,218,955.02 |
| 3.Cashflowsfromfinancingactivities: |
| Capitalcontributionsreceived | ||
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsobtained | 34,000,000.00 | 40,700,000.00 |
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 34,000,000.00 | 40,700,000.00 |
| Repaymentsofborrowings | 59,500,000.00 | 39,600,000.00 |
| Paymentsforinterestanddividends | 19,005,058.96 | 19,322,496.75 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | ||
| Subtotalofcashusedinfinancingactivities | 78,505,058.96 | 58,922,496.75 |
| Netcashgeneratedfrom/usedinfinancingactivities | -44,505,058.96 | -18,222,496.75 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | 715,396.97 | |
| 5.Netincreaseincashandcashequivalents | -142,494,895.42 | 361,815,985.16 |
| Add:Cashandcashequivalents,beginningoftheperiod | 687,079,639.59 | 325,263,654.43 |
| 6.Cashandcashequivalents,endoftheperiod | 544,584,744.17 | 687,079,639.59 |
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2019 | 2018 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 1,911,679,765.84 | 2,373,022,957.25 |
| Taxrebates | 34,035,423.13 | 40,981,398.83 |
| Cashgeneratedfromotheroperatingactivities | 9,754,947.38 | 10,293,262.16 |
| Subtotalofcashgeneratedfromoperatingactivities | 1,955,470,136.35 | 2,424,297,618.24 |
| Paymentsforcommoditiesandservices | 1,637,576,894.25 | 1,748,150,322.59 |
| Cashpaidtoandforemployees | 237,310,147.26 | 268,331,025.24 |
| Taxespaid | 8,675,558.38 | 21,464,799.34 |
| Cashusedinotheroperatingactivities | 107,932,998.05 | 114,428,231.52 |
| Subtotalofcashusedinoperatingactivities | 1,991,495,597.94 | 2,152,374,378.69 |
| Netcashgeneratedfrom/usedinoperatingactivities | -36,025,461.59 | 271,923,239.55 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 4,000,000.00 | 30,000,000.00 |
| Returnoninvestment | 6,206,814.50 | 112,621,521.91 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 297,935.85 | 867,615.38 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 9,500,000.00 | |
| Subtotalofcashgeneratedfrominvestingactivities | 20,004,750.35 | 143,489,137.29 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 30,078,441.85 | 16,631,342.48 |
| Paymentsforinvestments | 60,000,000.00 | 10,000,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits |
| Cashusedinotherinvestingactivities | 9,500,000.00 | |
| Subtotalofcashusedininvestingactivities | 99,578,441.85 | 26,631,342.48 |
| Netcashgeneratedfrom/usedininvestingactivities | -79,573,691.50 | 116,857,794.81 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsobtained | 5,000,000.00 | 10,000,000.00 |
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 5,000,000.00 | 10,000,000.00 |
| Repaymentsofborrowings | 28,500,000.00 | 1,000,000.00 |
| Paymentsforinterestanddividends | 16,009,069.84 | 17,991,292.28 |
| Cashusedinotherfinancingactivities | ||
| Subtotalofcashusedinfinancingactivities | 44,509,069.84 | 18,991,292.28 |
| Netcashgeneratedfrom/usedinfinancingactivities | -39,509,069.84 | -8,991,292.28 |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | 1,031,120.95 | |
| 5.Netincreaseincashandcashequivalents | -154,077,101.98 | 379,789,742.08 |
| Add:Cashandcashequivalents,beginningoftheperiod | 651,854,206.79 | 272,064,464.71 |
| 6.Cashandcashequivalents,endoftheperiod | 497,777,104.81 | 651,854,206.79 |
7.ConsolidatedStatementsofChangesinOwners’Equity2019
Unit:RMB
| Item | 2019 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 | ||||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 |
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 52,654,100.00 | 2,377,243.24 | 2,093,650.19 | 8,806,577.77 | 65,931,571.20 | 17,800.90 | 65,949,372.10 | |||
| 3.1Totalcomprehensiveincome | 52,654,100.00 | 24,934,586.11 | 77,588,686.11 | 17,800.90 | 77,606,487.01 | |||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||
| 3.2.1Ordinarysharesincreasedbyowners |
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||
| 3.2.4Other | ||||||||
| 3.3Profitdistribution | 2,093,650.19 | -16,128,008.34 | -14,034,358.15 | -14,034,358.15 |
| 3.3.1Appropriationtosurplusreserves | 2,093,650.19 | -2,093,650.19 | ||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -14,034,358.15 | -14,034,358.15 | -14,034,358.15 | |||||
| 3.3.4Other | ||||||||
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||
| 3.4.6Other | ||||||
| 3.5Specificreserve | 2,377,243.24 | 2,377,243.24 | 2,377,243.24 |
| 3.5.1Increaseintheperiod | 3,868,727.07 | 3,868,727.07 | 3,868,727.07 | ||||||||||
| 3.5.2Usedintheperiod | 1,491,483.83 | 1,491,483.83 | 1,491,483.83 | ||||||||||
| 3.6Other | |||||||||||||
| 4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 317,059,775.00 | 17,560,202.07 | 322,226,700.34 | 726,689,929.10 | 2,109,239,597.94 | 19,636,281.01 | 2,128,875,878.95 |
2018
Unit:RMB
| Item | 2018 | ||||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balancesasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 2,246,896,857.86 | 19,473,156.31 | 2,266,370,014.17 | ||||
| Add:Adjustmentsforchangedaccountingpolicies | |||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | |||||||||||||
| Adjustmentsforbusinesscombinationsundercommoncontrol |
| Otheradjustments | |||||||||||||
| 2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 679,131,047.06 | 2,246,896,857.86 | 19,473,156.31 | 2,266,370,014.17 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -250,662,875.00 | 1,893,899.62 | 6,427,839.99 | 38,752,304.27 | -203,588,831.12 | 145,323.80 | -203,443,507.32 | ||||||
| 3.1Totalcomprehensiveincome | -250,662,875.00 | 62,021,374.04 | -188,641,500.96 | 145,323.80 | -188,496,177.16 | ||||||||
| 3.2Capitalincreasedandreducedbyowners |
| 3.2.1Ordinarysharesincreasedbyowners |
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments |
| 3.2.3Share-basedpaymentsincludedinowners’equity |
| 3.2.4Other |
| 3.3Profitdistribution | 6,427,839.99 | -23,269,069.77 | -16,841,229.78 | -16,841,229.78 | ||||
| 3.3.1Appropriationtosurplusreserves | 6,427,839.99 | -6,427,839.99 | ||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | -16,841,229.78 | |||||
| 3.3.4Other |
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings | ||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||
| 3.4.6Other | ||||||
| 3.5Specificreserve | 1,893,899.62 | 1,893,899.62 | 1,893,899.62 |
| 3.5.1Increaseintheperiod | 4,135,805.99 | 4,135,805.99 | 4,135,805.99 | ||||||||||
| 3.5.2Usedintheperiod | 2,241,906.37 | 2,241,906.37 | 2,241,906.37 | ||||||||||
| 3.6Other | |||||||||||||
| 4.Balancesasattheendoftheperiod | 561,374,326.00 | 164,328,665.43 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 717,883,351.33 | 2,043,308,026.74 | 19,618,480.11 | 2,062,926,506.85 |
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2019
Unit:RMB
| Item | 2019 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 52,654,100.00 | 2,377,243.24 | 2,093,650.19 | 4,808,493.60 | 61,933,487.03 | |||||
| 3.1Totalcomprehensiveincome | 52,654,100.00 | 20,936,501.94 | 73,590,601.94 | |||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments |
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||
| 3.2.4Other | |||||
| 3.3Profitdistribution | 2,093,650.19 | -16,128,008.34 | -14,034,358.15 | ||
| 3.3.1Appropriationtosurplusreserves | 2,093,650.19 | -2,093,650.19 | |||
| 3.3.2Appropriationtoowners(orshareholders) | -14,034,358.15 | -14,034,358.15 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinowners’equity |
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 2,377,243.24 | 2,377,243.24 | ||||||||
| 3.5.1Increaseintheperiod | 3,868,727.07 | 3,868,727.07 | ||||||||
| 3.5.2Usedintheperiod | 1,491,483.83 | 1,491,483.83 | ||||||||
| 3.6Other | ||||||||||
| 4.Balancesasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 317,059,775.00 | 17,560,202.07 | 322,226,700.34 | 648,776,959.53 | 2,050,069,110.64 |
2018
Unit:RMB
| Item | 2018 | |||||||||
| Share | Otherequityinstruments | Capital | Less: | Other | Specific | Surplus | Retained | Oth | Totalowners’ | |
| capital | Preferredshares | Perpetualbonds | Other | reserves | Treasurystock | comprehensiveincome | reserve | reserves | earnings | er | equity | |
| 1.Balancesasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | |||||
| Add:Adjustmentsforchangedaccountingpolicies | ||||||||||||
| Adjustmentsforcorrectionsofpreviouserrors | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balancesasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 515,068,550.00 | 13,289,059.21 | 313,705,210.16 | 602,959,135.85 | 2,189,467,428.92 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -250,662,875.00 | 1,893,899.62 | 6,427,839.99 | 41,009,330.08 | -201,331,805.31 |
| 3.1Totalcomprehensiveincome | -250,662,875.00 | 64,278,399.85 | -186,384,475.15 | |||
| 3.2Capitalincreasedandreducedbyowners | ||||||
| 3.2.1Ordinarysharesincreasedbyowners | ||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||
| 3.2.4Other |
| 3.3Profitdistribution | 6,427,839.99 | -23,269,069.77 | -16,841,229.78 | ||
| 3.3.1Appropriationtosurplusreserves | 6,427,839.99 | -6,427,839.99 | |||
| 3.3.2Appropriationtoowners(orshareholders) | -16,841,229.78 | -16,841,229.78 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinowners’equity | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
| 3.4.3Lossoffsetbysurplusreserves |
| 3.4.4Changesindefinedbenefitpensionschemestransferredtoretainedearnings |
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other |
| 3.5Specificreserve | 1,893,899.62 | 1,893,899.62 | ||||||||
| 3.5.1Increaseintheperiod | 4,135,805.99 | 4,135,805.99 | ||||||||
| 3.5.2Usedintheperiod | 2,241,906.37 | 2,241,906.37 | ||||||||
| 3.6Other | ||||||||||
| 4.Balancesasattheendoftheperiod | 561,374,326.00 | 183,071,147.70 | 264,405,675.00 | 15,182,958.83 | 320,133,050.15 | 643,968,465.93 | 1,988,135,623.61 |
III.CompanyProfile
ChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)wasfoundedon5May1994,whichisacompanylimitedbysharespromotedsolelybyChangzhouDieselEnginePlantthroughtheapprovalbytheStateCommissionforRestructuringtheEconomicSystemswithdocumentTGS[1993]No.9on15January1993bywayofpublicofferingofshares.WiththeapprovedofthePeople’sGovernmentofJiangsuProvinceSZF[1993]No.67,aswellasreexaminedandapprovedbyChinaSecuritiesRegulatoryCommission(“CSRC”)throughdocumentZJFSZ(1994)No.9,theCompanyinitiallyissuedAsharestothepublicfrom15March1994to30March1994.AsapprovedbytheShenzhenStockExchangethroughdocumentSZSFZ(1994)No.15,suchtradablesharesofthepublicgotlistingon1July1994atShenzhenStockExchangewith“SuChangchaiA”forshortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).In1996,withtherecommendationoftheOfficeofthePeople’sGovernmentofJiangsuProvinceSZBH[1996]No.13,aswellasfirstreviewbyShenzhenMunicipalSecuritiesAdministrationOfficethroughSZBZ[1996]No.24,andapprovaloftheStateCouncilSecuritiesCommissionZWF[1996]No.27,theCompanyissued100millionBsharestoqualifiedinvestorson27August1996to30August1996,gettinglistedon13September1996.
On9June2006,theCompanyheldashareholders’generalmeetingrelatedtoAsharesmarkettoexamineandapprovesharemergerreformplan,andperformedthesharemergerreformon19June2006.
Asexaminedandapprovedatthe2
ndExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange.Asat31December2015,thetotalsharecapitaloftheCompanyis561,374,326.00shares,aswellasregisteredcapitalofRMB561,374,326.00,whichverifiedbyGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)withissuingCapitalVerificationReportSGC[2010]No.B002.AndtheunifiedsocialcreditcodeoftheenterprisebusinesslicenseoftheCompanyis91320400134792410W.
TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.
TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproductionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelofChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combineharvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsetsandshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedintheReportingPeriod.
TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.
ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson9April2020.
TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand6subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparation
Withthegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theCompanypreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusiness
Enterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theCompanyadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.Continuation
TheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthefinancialinstruments，withdrawalmethodofthebaddebtprovisionoftheaccountsreceivable,themeasurementoftheinventoryandthedepreciationofthefixedassetsetc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementspreparedbytheCompanyareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheCompany’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriod
Thefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycle
AnormaloperatingcyclereferstoaperiodfromtheCompanypurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheCompanyis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.
Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.
Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthecontrolrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)Businesscombinationsnotunderthesamecontrol
Abusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.
Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedin
thecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheCompanyholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheCompanyholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatementsTheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheCompanyarerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.
TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,whichshallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.
Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthefinancialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationasparticipatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjusttheperiod-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthecomparedstatement.
Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthecurrentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.
WheretheCompanylossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefair
valueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheCompanyaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheCompany’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.
Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheCompanylosingcontrolonitssubsidiary.
Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperations
TheCompanyclassifiesjointarrangementsintojointoperationsandjointventures.
AjointoperationreferstoajointarrangementwheretheCompanyisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassetsaccordingtotheCompany’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheCompany’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheCompany’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheCompany’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheCompanyandtheexpenseincurredtothejointoperationaccordingtotheCompany’sstakeinit.
8.RecognitionStandardforCashandCashEquivalentsIntheCompany’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)Translationofforeigncurrency
Theassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstruments
(1)ClassificationofFinancialInstruments
TheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)andfinancialassetsatfairvaluethroughprofitorloss
Financialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①Financialassetsmeasuredatamortizedcost
Financialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Foraccountsreceivableexcludingsignificantfinancing
andaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,theinitialmeasurementshallbemadeatthecontracttransactionprice.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenrecoveredordisposed,thedifferencebetweenthepriceobtainedandthecarryingvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
②Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)includeaccountsreceivablefinancingandinvestmentinotherdebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueexceptforinterestcalculatedwithactualrates,impairmentlossesorgainsandexchangegainsorlossesshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintothecurrentprofitorloss.
③Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)includeinvestmentinotherequityinstruments,etc.whichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueshallberecordedintoothercomprehensiveincome.Thedividendsobtainedshallberecordedintothecurrentprofitorloss.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintoretainedearnings.
④FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
⑤FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandderivativefinancialliabilitieswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialliabilitiesshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthecarryingvalueandthepaidconsiderationshallberecordedintothecurrentprofitorloss.
⑥FinancialliabilitiesatamortizedcostFinancialliabilitiesatamortizedcostincludeshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayableswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthepaidconsiderationandthecarryingvalueofthefinancialliabilitiesshallberecordedintothecurrentprofitorloss.
(3)RecognitionBasisandMeasurementofTransferofFinancialAssetsWheretheCompanyhastransferrednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethetransferredfinancialasset.
WheretheCompanydoesnottransferorretainnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itshalldealwithitaccordingtothecircumstancesasfollows,respectively:(1)Ifitgivesupitscontroloverthefinancialasset,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities;(2)Ifitdoesnotgiveupitscontroloverthefinancialasset,itshall,accordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset,recognizetherelatedfinancialassetandrecognizetherelevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueofthetransferredfinancialassetonthederecognitiondate;(2)Thesumofconsiderationreceivedfromthetransferoffinancialassets,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,theentirecarryingvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped,beapportionedaccordingtotheirrespectiverelativefairvalueonthetransferdate,andthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueoftheportionwhoserecognitionhasbeenstopped;(2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstopped,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(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.
Asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,theCompanyonlyconfirms
cumulativechangeofexpectedcreditlosswithinthewholedurationafterinitialconfirmationonthebalancesheetdateaslossreserve.
Asforaccountsreceivablewhichdon’tincludemajorfinancingcontentsortheCompanydoesnotconsiderfinancingcontentsincontractwhichislessthanoneyear,theCompanyappliessimplifiedmeasurementmethod,andmeasureslossreserveaccordingtoamountofexpectedcreditlosswithinthewholeduration.Asforaccountreceivableofrentalandaccountsreceivableincludingmajorfinancingcontents,theCompanyappliessimplifiedmeasurementmethod,andmeasurelossreserveaccordingtoamountofexpectedcreditlosswithinthewholeduration.
Asforfinancialassetbeyondabovementionedmeasurementmethods,theCompanyevaluateswhetheritscreditriskhasincreasedobviouslysincetheinitialconfirmationoneachbalancesheetdate.Incasecreditriskhasincreasedobviously,theCompanymeasuresthelossreserveaccordingtoamountofexpectedcreditlosswithinthewholeduration;incasethecreditriskdoesnotincreaseobviously,theCompanymeasureslossreserveaccordingtotheamountofexpectedcreditlossinnext12months.
Byutilizingobtainablerationalandwellgroundedinformation,includingforward-lookinginformation,comparingtheriskofcontractbreachonbalancesheetdateandriskofcontractbreachoninitialconfirmationdate,theCompanyconfirmswhetherthecreditriskoffinancialinstrumenthasincreasedobviouslyfrominitialconfirmation.
Onbalancesheetdate,incasetheCompanyjudgesthatthefinancialinstrumentjusthasrelativelylowcreditrisk,thenitwillbeassumedthatcreditriskofthefinancialinstrumenthasnotincreasedobviously.
Basedonsinglefinancialinstrumentorfinancialportfolio,theCompanyevaluatesexpectedcreditriskandmeasuresexpectedcreditloss.Whenbasedonfinancialinstrumentportfolio,theCompanytakescommonriskcharacteristicsasthebasis,anddividesfinancialinstrumentsintodifferentportfolios.
TheCompanymeasuresexpectedcreditlossagainoneachbalancesheetdate,theincreaseoflossreserveoramountwhichistransferbackgeneratedbyitiscalculatedintocurrentprofitsandlossesasimpairmentprofitsorlosses.Asforfinancialassetwhichismeasuredbyamortizedcost,lossreserveoffsetsthecarryingvalueofthefinancialassetlistedinthebalancesheet;asfordebtinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,theCompanyconfirmsitslossreserveinothercomprehensiveprofitsanddoesnotoffsetthecarryingvalueofthefinancialasset.
②Fornotesreceivable,accountsreceivable,otherreceivablesandlong-termreceivableswithobjectiveevidenceindicatingimpairmentandthosesuitableforindividualevaluation,theCompanycarriesoutimpairmenttestseparatelytoconfirmexpectedcreditlossandprepareprovisionforimpairmentofsingleitems.Fornotesreceivable,accountsreceivableandotherreceivableswithoutobjectiveevidenceofimpairment,orasinglefinancialassetwithexpectedcreditlossimpossibletobeassessedatareasonablecost,theCompanydividesthereceivablesintogroupsaccordingtothecharacteristicsofcreditrisk,andcalculatetheexpectedcreditlossbasedonreceivablegroups.AccountsreceivablewithexpectedcreditlossesmeasuredbygroupsSpecificgroupsandmethodofmeasuringexpectedcreditloss
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Bank’sacceptancebillsreceivable | Billtype | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Tradeacceptancebillsreceivable |
| Accountsreceivable-creditriskcharacteristicsgroup | Aginggroup | Preparethecomparativelistbetweenagingofaccountsreceivableandexpectedcreditlossrateovertheentirelifeandcalculatetheexpectedcreditlossbyconsultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation |
| Accountsreceivable-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Accountsreceivable-thecomparativelistbetweenagingofcreditriskcharacteristicgroupandexpectedcreditlossrateovertheentirelife
| Aging | Withdrawalproportion |
| Within1year | 2.00% |
| 1to2years | 5.00% |
| 2to3years | 15.00% |
| 3to4years | 30.00% |
| 4to5years | 60.00% |
| Over5years | 100.00% |
OtherreceivableswithexpectedcreditlossesmeasuredbygroupsSpecificgroupsandmethodofmeasuringexpectedcreditloss
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Otherreceivables-aginganalysisgroup | Aginggroup | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
| Otherreceivables-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Forthemeasurementofimpairmentlossofotherreceivables,refertotheaforesaidmeasurementofimpairmentlossofaccountsreceivable.
11.NotesReceivable
See“10.FinancialInstruments”.
12.AccountsReceivableSee“10.FinancialInstruments”.
13.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-valueconsumablesandpackages
Onetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
14.ClassifiedasAssetsHeldforSale
TheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowing
conditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.
15.Long-termEquityInvestments
(1)Judgmentstandardofjointcontrolandsignificantinfluences
Jointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)Recognitionforinitialinvestmentcost
Theinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeans
Theinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.
Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)Aninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethod
WheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)Aninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethod
WheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.
AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.
Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.
IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheCompany,shouldbeadjustedaccordingtotheaccountingpoliciesoftheCompanyandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.
ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheCompanyaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,
shouldnotbeneutralized.TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:
firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshallberecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theCompanyshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoowners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.
Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.
ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforethe
Companyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
16.InvestmentRealEstateMeasurementmodeofinvestmentrealestate:
MeasurementofcostmethodDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.
Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
17.FixedAssets
(1)RecognitionConditions
Fixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
| Categoryoffixedassets | Method | Usefullife | Annualdeprecation |
| Housingandbuilding | Averagemethodofusefullife | 20-40 | 2.50%-5% |
| Machineryequipment | Averagemethodofusefullife | 6-15 | 6.67%-16.67% |
| Transportationequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
| Otherequipment | Averagemethodofusefullife | 5-10 | 10%-20% |
(3)RecognitionBasis,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
18.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
19.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumsonborrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)TheperiodofcapitalizationofborrowingcostsTheborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesandinventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.The
capitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
20.IntangibleAssets
(1)PricingMethod,ServiceLife,andImpairmentTest
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.
Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.
Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)Amortizationmethodandtermofintangibleassets
Asfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswithlimitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.
Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.
TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)AccountingPolicesofInternalR&DExpenses
Theinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.
TheCompanycollectstheexpensesofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentexpendituresforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentexpendituresoftheintangibleassetscanbereliablymeasured.
21.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcashflowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.
Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
22.AmortizationMethodofLong-termDeferredExpenses
Long-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
23.Payroll
(1)AccountingTreatmentofShort-termCompensation
Short-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.
24.EstimatedLiabilities
(1)CriteriaofestimatedliabilitiesOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)Measurementofestimatedliabilities
TheCompanyshallmeasuretheestimateddebtsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.
TheCompanyshallcheckthebookvalueoftheestimateddebtsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
25.RevenueHastheCompanyimplementedthenewstandardsgoverningrevenues
□Yes√No
(1)Recognitionofrevenuefromsaleofgoods:therevenuefromsellingshallberecognizedbythefollowingconditions:ThesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheCompany;theCompanyretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;therelevantamountofrevenuecanbemeasuredinareliable
way;therelevantrevenueandcostsofsellinggoodscanbemeasuredinareliableway.Theamountoftherevenuefromsellingshallascertaintherevenueincurredbysellinggoodsinaccordancewiththereceivedorreceivablepricestipulatedinthecontractoragreementsignedbetweentheenterpriseandthebuyer,unlessthereceivedorreceivableamountasstipulatedinthecontractoragreementisunfair.
(2)Recognitionofrevenuefromprovidinglaborservices:Whenthetotalrevenueandcostsfromprovidinglaborcanbemeasuredinareliableway;therelevanteconomicbenefitsarelikelytoflowintotheenterprise;thescheduleofcompletionunderthetransactioncanbemeasuredinareliableway,therevenuefromprovidinglaborshallberecognized.IftheCompanycanreliablyestimatetheoutcomeofatransactionconcerningthelaborservicesitprovides,itshallrecognizetherevenuefromprovidingservicesemployingthepercentage-of-completionmethodonthedateofthebalancesheet,otherwisetherevenuefromtheprovidingoflaborservicesshallberecognizedinaccordancewiththeamountofthecostoflaborservicesincurredandexpectedtobecompensated.TheCompanyrecognizedthecompletionprocessofthetransactionconcerningthelaborservicesaccordingtotheproportionoftheoccurredcostoftheestimatedtotalcost.Thetotalamountoftherevenuefromprovidingservicesshouldberecognizedaccordingtothecontractpricereceivedorreceivablefromtheacceptingofthelaborservicesortheagreementpriceexceptforthoseunfairprices.
(3)Recognitionoftherevenuefromtransferringuserightsofassets:Whentherelevanteconomicbenefitsarelikelytoflowintotheenterprisesandtheamountofrevenuescanbemeasuredinareliableway,therevenuefromabalienatingtherighttouseassetsshallberecognized.Theamountofinterestrevenueshouldbemeasuredandconfirmedinaccordancewiththelengthoftimeforwhichtheenterprise'scashisusedbyothersandtheactualinterestrate；theamountofroyaltyrevenueshouldbemeasuredandconfirmedinaccordancewiththeperiodandmethodofchargingasstipulatedintherelevantcontractoragreement；asfortherentalrevenue:theamountoftherentalrevenuefromtheoperationleaseshouldberecognizedaccordingtothestraight-linemethodduringeachperiodoftheleasetermoraccruedintothecurrentgainsandlossesifrentalactualoccurred.
26.GovernmentSubsidies
(1)Type
Agovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentsubsidiesconsistofthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeaccordingtotherelevantgovernmentdocuments.
Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisoftheCompanyclassifiesthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidies
Thegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentsubsidiesaswellascouldbeacquired.
Ifthegovernmentsubsidiesarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentsubsidiesarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatment
Thegovernmentsubsidiespertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentsubsidiespertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,and
shallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.Forgovernmentsubsidiesthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.
GovernmentsubsidiesrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.
Thegovernmentsubsidiesrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentsubsidiesassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.
27.DeferredIncomeTaxAssetsandLiabilities
(1)Basisofrecognizingthedeferredincometaxassets
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxassetsshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.
TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)Basisofrecognizingthedeferredincometaxliabilities
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxliabilitiesshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
28.Lease
(1)AccountingTreatmentofOperatingLease
Lesseeinanoperatingleaseshalltreattheleasepaymentunderanoperatingleaseasarelevantassetcostorthecurrentprofitorlossonastraight-linebasisovertheleaseterm.Theinitialdirectcostsincurredshallberecognizedasthecurrentprofitorloss;Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.
Lessorsinanoperatingleaseshallberecognizedasthecurrentprofitorlossonastraight-linebasisovertheleaseterm;Initialdirectcostsincurredbylessorsshallberecognizedasthecurrentprofitorloss;theinitialdirectexpensesoccurshouldbedirectlyincludedinthecurrentgainsandlossesexceptforthosewithlargeramountand
becapitalizedaswellasbeincludedinthegainsandlossesbystages.Contingentrentsshallbechargedasexpensesintheperiodsinwhichtheyareincurred.
(2)AccountingTreatmentsofFinancialLease
WhentheCompanyasthelessee,Ontheleasebeginningdate,theCompanyshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognizetheamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,andtreatthebalancebetweentherecordedamountoftheleasedassetandthelong-termaccountpayableasunrecognizedfinancingchargesandtheoccurredinitialdirectexpenses,shouldberecordedintheleaseassetsvalue.Duringeachleaseperiod,shouldrecognizethecurrentfinancingexpensesbyadoptingtheactualinterestrate.
WhentheCompanyastheleasorandonthebeginningdateoftheleaseterm,theCompanyshallrecognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsastheenteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalueatthesametime.Thebalancebetweenthesumoftheminimumleasereceipts,theinitialdirectcostsandtheunguaranteedresidualvalueandthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancingincome.Duringeachleaseperiod,shouldrecognizethecurrentfinancingrevenuesadoptingtheactualinterestrate.
29.OtherSignificantAccountingPoliciesandEstimates
(1)Operationtermination
OperationterminationreferstothecomposepartthatmeetwithoneofthefollowingconditionswhichhadbeendisposedbytheCompanyorbeclassifiedtoheld-to-soldaswellascouldbeindividuallydistinguishedinoperatingandcompilingthefinancialstatement:
1)Thecomposepartrepresentsanindividualmainbusinessoramainoperationarea;
2)Thecomposepartisapartintendstodisposeandplananindividualmainbusinessoramainoperationarea;
3)Thecomposepartisasubsidiarywhichbeacquiredonlyforresold.
(2)Hedgingaccounting
Theterm“hedging”referstooneormorehedginginstrumentswhicharedesignatedbyanenterpriseforavoidingtherisksofforeignexchange,interestrate,commodityprice,stockprice,creditandetc.,andwhichisexpectedtomakethechangesinfairvalueorcashflowofhedginginstrument(s)tooffsetallorpartofthechangesinthefairvalueorcashflowofthehedgeditem.
Theterm“hedginginstrument”shallrefertoaderivativeinstrumentwhichisdesignatedbyanenterpriseforhedgingandbywhichitisexpectedthatchangesinitsfairvalueorcashflowcanoffsetthechangesinfairvalueorcashflowofthehedgeditem.Forahedgingofforeignexchangerisk,anon-derivativefinancialassetornon-derivativefinancialliabilitymaybeusedasahedginginstrument.
The“hedgeditem”shallrefertothefollowingitemswhichmakeanenterprisefacedtochangesinfairvalueorcashflowandaredesignatedasthehedgedobjectives.
Thehedgingshouldbeexecutedbythehedgingaccountingmethodswhensatisfyingthefollowingconditionsatthesametime:
1)Atthecommencementofthehedging,theenterpriseshallspecifythehedgingrelationshipformally(namelytherelationshipbetweenthehedginginstrumentandthehedgeditem)andprepareaformalwrittendocumentonthehedgingrelationship,riskmanagementobjectivesandthestrategiesofhedging.
2)Thehedgingexpectationishighlyefficientandmeetstheriskmanagementstrategy,whichisconfirmedforthehedgingrelationshipbyenterpriseattheverybeginning.
3)Foracashflowhedgingofforecasttransaction,theforecasttransactionshallbelikelytooccurandshallmaketheenterprisefacedtotheriskofchangesincashflow,whichwillultimatelyaffecttheprofitsandlosses.
4)Theeffectivenessofhedgingcanbereliablymeasured.
5)Thehedgingishighlyeffectiveinaccountingperiodinwhichthehedgingrelationshipisspecified.
30.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
| Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
| TheNoticeonRevisingandIssuingtheFormatsof2019FinancialStatementsforGeneralEnterprises(CK[2019]No.6)issuedbytheMinistryofFinanceon30April2019requiresthecompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsbutnotthenewstandardsgoverningrevenueandleaseorcompanieswhichhaveimplementedthenewstandardsgoverningfinancialinstrumentsandrevenuebutnotthenewstandardsgoverningleasetoadjustitemsoffinancialstatementsinlinewithrequirementsinAppendix1andAppendix2ofthisNotice. | On27August2019,theCompanyheldthe20thMeetingofthe8thBoardofDirectorsandthe16thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesofSomeAccountingPolicies | Referto(1)ofothernotesfordetails |
| TheCompanystartstoimplementtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,whichrevisedandissuedbytheMinistryofFinanceinMarch2017andhereinaftercollectivelyreferredtoasnewstandardsgoverningfinancialinstrumentssince1January2019whichstipulatethatthecompanyshallclassifyandmeasurefinancialinstrumentsinaccordancewithregulationsontheexecutiondate,whenthedataofcomparativefinancialstatementsofprioryearsdonotcomplywiththenewstandards,noadjustmentismadebytheCompany. | On9April2019,theCompanyheldthe17thMeetingofthe8thBoardofDirectorsand13thMeetingofthe8thSupervisoryCommitteeandapprovedtheProposalonChangesinSomeAccountingPolicies | Referto(2)ofothernotesfordetails |
Othernotes:
(1)InfluenceofChangesinFormatsofFinancialstatementsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
| 31December2018 | 1January2019 | ||
| Notesreceivableandaccountsreceivable | 874,229,941.58 | Notesreceivable | 495,370,782.47 |
| Accountsreceivable | 378,859,159.11 | ||
| Notespayableandaccountspayable | 1,030,130,275.77 | Notespayable | 438,375,400.00 |
| Accountspayable | 591,754,875.77 | ||
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
| 31December2018 | 1January2019 | ||
| Notesreceivableandaccountsreceivable | 790,877,079.72 | Notesreceivable | 490,519,795.91 |
| Accountsreceivable | 300,357,283.81 | ||
| Notespayableandaccountspayable | 987,550,797.44 | Notespayable | 425,995,400.00 |
| Accountspayable | 561,555,397.44 | ||
(2)InfluenceofExecutionofNewStandardsGoverningFinancialInstrumentsAffecteditemsintheconsolidatedbalancesheetandamountthereof:
| Item | 31December2018 | Affectedamount | 1January2019 | |
| Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
| Othercurrentassets | 34,357,608.97 | -8,253,873.41 | 26,103,735.56 | |
| Held-for-tradingfinancialassets | 8,253,873.41 | 8,253,873.41 | ||
| Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | ||
| Investmentinotherequityinstruments | 472,150,000.00 | 1,210,000.00 | 470,940,000.00 | |
| Othernon-currentfinancialassets | 27,911,369.49 | 27,911,369.49 | ||
| Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
| Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 | ||
AffecteditemsinthebalancesheetoftheCompanyastheparentandamountthereof:
| Item | 31December2018 | Affectedamount | 1January2019 | |
| Affectedbyclassificationandmeasurement | Affectedbyimpairmentoffinancialassets | |||
| Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | ||
| Investmentinotherequityinstruments | 471,350,000.00 | 410,000.00 | 470,940,000.00 | |
| Othernon-currentassets | -4,000,000.00 | 4,000,000.00 | ||
| Investmentindebtobligations | 4,000,000.00 | -4,000,000.00 | ||
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstotheFinancialStatementsattheBeginningoftheFirstExecutionYearofanyNewStandardsGoverningFinancialInstruments,RevenueorLeases
√Applicable□NotapplicableConsolidatedBalanceSheet
Unit:RMB
| Item | 31December2018 | 1January2019 | Adjustment |
| Currentassets: | |||
| Monetaryassets | 800,960,036.69 | 800,960,036.69 | |
| Settlementreserve | |||
| Interbankloansgranted | |||
| Held-for-tradingfinancialassets | 8,253,873.41 | 8,253,873.41 | |
| Financialassetsatfairvaluethroughprofitorloss | |||
| Derivativefinancialassets | |||
| Notesreceivable | 495,370,782.47 | 495,370,782.47 | |
| Accountsreceivable | 378,859,159.11 | 378,859,159.11 | |
| Accountsreceivablefinancing | |||
| Prepayments | 11,352,297.10 | 11,352,297.10 | |
| Premiumsreceivable | |||
| Reinsurancereceivables | |||
| Receivablereinsurancecontractreserve | |||
| Otherreceivables | 9,244,584.42 | 9,244,584.42 | |
| Including:Interestreceivable | |||
| Dividendsreceivable | |||
| Financialassetspurchasedunderresaleagreements | |||
| Inventories | 557,953,891.70 | 557,953,891.70 | |
| Contractualassets | |||
| Assetsclassifiedasheldforsale | |||
| Currentportionofnon-current |
| assets | |||
| Othercurrentassets | 34,357,608.97 | 26,103,735.56 | -8,253,873.41 |
| Totalcurrentassets | 2,288,098,360.46 | 2,288,098,360.46 | |
| Non-currentassets: | |||
| Loansandadvancestocustomers | |||
| Investmentsindebtobligations | |||
| Available-for-salefinancialassets | 498,851,369.49 | -498,851,369.49 | |
| Investmentsinotherdebtobligations | |||
| Held-to-maturityinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | |||
| Investmentsinotherequityinstruments | 470,940,000.00 | 470,940,000.00 | |
| Othernon-currentfinancialassets | 27,911,369.49 | 27,911,369.49 | |
| Investmentproperty | 50,656,007.63 | 50,656,007.63 | |
| Fixedassets | 511,250,371.37 | 511,250,371.37 | |
| Constructioninprogress | 89,090,384.71 | 89,090,384.71 | |
| Productivelivingassets | |||
| Oilandgasassets | |||
| Right-of-useassets | |||
| Intangibleassets | 103,092,879.38 | 103,092,879.38 | |
| R&Dexpense | |||
| Goodwill | |||
| Long-termprepaidexpense | |||
| Deferredincometaxassets | 979,822.71 | 979,822.71 | |
| Othernon-currentassets | |||
| Totalnon-currentassets | 1,253,920,835.29 | 1,253,920,835.29 | |
| Totalassets | 3,542,019,195.75 | 3,542,019,195.75 | |
| Currentliabilities: | |||
| Short-termborrowings | 27,000,000.00 | 27,000,000.00 | |
| Borrowingsfromcentralbank | |||
| Interbankloansobtained | |||
| Held-for-tradingfinancialliabilities |
| Financialliabilitiesatfairvaluethroughprofitorloss | ||
| Derivativefinancialliabilities | ||
| Notespayable | 438,375,400.00 | 438,375,400.00 |
| Accountspayable | 591,754,875.77 | 591,754,875.77 |
| Advancesfromcustomers | 34,500,232.97 | 34,500,232.97 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Payrollpayable | 50,500,592.99 | 50,500,592.99 |
| Taxespayable | 7,066,085.89 | 7,066,085.89 |
| Otherpayables | 199,412,250.90 | 199,412,250.90 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Contractualliabilities | ||
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
| Othercurrentliabilities | 2,082,985.18 | 2,082,985.18 |
| Totalcurrentliabilities | 1,369,192,423.70 | 1,369,192,423.70 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | 2,000,000.00 | 2,000,000.00 |
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities |
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Provisions | ||
| Deferredincome | 59,928,484.84 | 59,928,484.84 |
| Deferredincometaxliabilities | 47,971,780.36 | 47,971,780.36 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 109,900,265.20 | 109,900,265.20 |
| Totalliabilities | 1,479,092,688.90 | 1,479,092,688.90 |
| Owners’equity: | ||
| Sharecapital | 561,374,326.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 164,328,665.43 | 164,328,665.43 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 264,405,675.00 | 264,405,675.00 |
| Specificreserve | 15,182,958.83 | 15,182,958.83 |
| Surplusreserves | 320,133,050.15 | 320,133,050.15 |
| Generalreserve | ||
| Retainedearnings | 717,883,351.33 | 717,883,351.33 |
| TotalequityattributabletoownersoftheCompanyastheparent | 2,043,308,026.74 | 2,043,308,026.74 |
| Non-controllinginterests | 19,618,480.11 | 19,618,480.11 |
| Totalowners’equity | 2,062,926,506.85 | 2,062,926,506.85 |
| Totalliabilitiesandowners’equity | 3,542,019,195.75 | 3,542,019,195.75 |
Noteforadjustment
In2017,theMinistryofFinancerevisedtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,andrequiredcompanieslisteddomesticallytoimplementsince1January2019.Inaccordancewiththestandards,forfinancialinstrumentsnotderecognizedyetontheexecutiondate,whenthereisinconsistencebetweentheoriginalrecognition&measurementandtherequirementsoftherevisedstandards,retroactiveadjustmentisneeded.Fortheinconsistencebetweenthepriorcomparativefinancialstatementdataandtherequirementsoftherevisedstandards,noadjustmentisneeded.TheCompanystartstoimplementthenewstandardsgoverningfinancialinstrumentssince1January2019.Financialassetsoriginallyrecordedintoavailable-for-salefinancialassetsshallbeclassifiedintofinancialassets
atfairvaluethroughothercomprehensiveincomeandpresentedasinvestmentinotherequityinstrumentsinfinancialstatements.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2018 | 1January2019 | Adjustment |
| Currentassets: | |||
| Monetaryassets | 759,404,219.72 | 759,404,219.72 | |
| Held-for-tradingfinancialassets | |||
| Financialassetsatfairvaluethroughprofitorloss | |||
| Derivativefinancialassets | |||
| Notesreceivable | 490,519,795.91 | 490,519,795.91 | |
| Accountsreceivable | 300,357,283.81 | 300,357,283.81 | |
| Accountsreceivablefinancing | |||
| Prepayments | 4,768,038.11 | 4,768,038.11 | |
| Otherreceivables | 21,681,331.85 | 21,681,331.85 | |
| Including:Interestreceivable | |||
| Dividendsreceivable | |||
| Inventories | 437,423,195.46 | 437,423,195.46 | |
| Contractualassets | |||
| Assetsclassifiedasheldforsale | |||
| Currentportionofnon-currentassets | |||
| Othercurrentassets | 23,099,858.67 | 23,099,858.67 | |
| Totalcurrentassets | 2,037,253,723.53 | 2,037,253,723.53 | |
| Non-currentassets: | |||
| Investmentsindebtobligations | |||
| Available-for-salefinancialassets | 470,940,000.00 | -470,940,000.00 | |
| Investmentsinotherdebtobligations | |||
| Held-to-maturityinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | 241,752,730.03 | 241,752,730.03 | |
| Investmentsinotherequityinstruments | 470,940,000.00 | 470,940,000.00 |
| Othernon-currentfinancialassets | ||
| Investmentproperty | 50,656,007.63 | 50,656,007.63 |
| Fixedassets | 413,186,680.19 | 413,186,680.19 |
| Constructioninprogress | 87,007,215.91 | 87,007,215.91 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 72,184,608.63 | 72,184,608.63 |
| R&Dexpense | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 930,641.19 | 930,641.19 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 1,336,657,883.58 | 1,336,657,883.58 |
| Totalassets | 3,373,911,607.11 | 3,373,911,607.11 |
| Currentliabilities: | ||
| Short-termborrowings | 10,000,000.00 | 10,000,000.00 |
| Held-for-tradingfinancialliabilities | ||
| Financialliabilitiesatfairvaluethroughprofitorloss | ||
| Derivativefinancialliabilities | ||
| Notespayable | 425,995,400.00 | 425,995,400.00 |
| Accountspayable | 561,555,397.44 | 561,555,397.44 |
| Advancesfromcustomers | 32,072,387.55 | 32,072,387.55 |
| Contractualliabilities | ||
| Payrollpayable | 43,597,759.22 | 43,597,759.22 |
| Taxespayable | 2,443,767.89 | 2,443,767.89 |
| Otherpayables | 185,022,961.56 | 185,022,961.56 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsclassifiedasheldforsale | ||
| Currentportionofnon-currentliabilities | 18,500,000.00 | 18,500,000.00 |
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 1,279,187,673.66 | 1,279,187,673.66 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termpayrollpayable | ||
| Provisions | ||
| Deferredincome | 59,928,484.84 | 59,928,484.84 |
| Deferredincometaxliabilities | 46,659,825.00 | 46,659,825.00 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 106,588,309.84 | 106,588,309.84 |
| Totalliabilities | 1,385,775,983.50 | 1,385,775,983.50 |
| Owners’equity: | ||
| Sharecapital | 561,374,326.00 | 561,374,326.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 183,071,147.70 | 183,071,147.70 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 264,405,675.00 | 264,405,675.00 |
| Specificreserve | 15,182,958.83 | 15,182,958.83 |
| Surplusreserves | 320,133,050.15 | 320,133,050.15 |
| Retainedearnings | 643,968,465.93 | 643,968,465.93 |
| Totalowners’equity | 1,988,135,623.61 | 1,988,135,623.61 |
| Totalliabilitiesandowners’equity | 3,373,911,607.11 | 3,373,911,607.11 |
Noteforadjustment
In2017,theMinistryofFinancerevisedtheAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments,AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets,AccountingStandardsforBusinessEnterprisesNo.24-HedgeAccountingandAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,andrequired
companieslisteddomesticallytoimplementsince1January2019.Inaccordancewiththestandards,forfinancialinstrumentsnotderecognizedyetontheexecutiondate,whenthereisinconsistencebetweentheoriginalrecognition&measurementandtherequirementsoftherevisedstandards,retroactiveadjustmentisneeded.Fortheinconsistencebetweenthepriorcomparativefinancialstatementdataandtherequirementsoftherevisedstandards,noadjustmentisneeded.TheCompanystartstoimplementthenewstandardsgoverningfinancialinstrumentssince1January2019.Financialassetsoriginallyrecordedintoavailable-for-salefinancialassetsshallbeclassifiedintofinancialassetsatfairvaluethroughothercomprehensiveincomeandpresentedasinvestmentinotherequityinstrumentsinfinancialstatements.
(4)RetroactiveAdjustmentstoComparativeDataofPriorYearswhenFirstExecutionofanyNewStandardsGoverningFinancialInstrumentsorLeases
□Applicable√NotapplicableVI.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Payabletosalesrevenue | 16%,13%,11%,10%,6% |
| Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
| Enterpriseincometax | Taxableincome | 25%or15% |
| Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Name | Incometaxrate |
| ChangchaiCo.,Ltd. | 15% |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHoushengInvestmentCo.,Ltd. | 5% |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 25% |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 25% |
| JiangsuChangchaiMachineryCo.,Ltd. | 25% |
2.TaxPreference
In2018,theCompanyhasbeenidentifiedasHigh-techEnterprises,therefore,itenjoys15-percentpreferentialrateforcorporateincometax;theCompany’scontrollingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2020inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopment.Thecontrollingsubsidiary-ChangzhouHoushengInvestmentCo.,Ltd.shallpaythecorporateincometaxattaxrate5%from1January2019to31December2021inaccordancewiththeNoticeoftheImplementationofInclusiveTaxReductionPolicytoSmallandMicroEnterprisesbyMinistryofFinanceandtheNationalAdministrationoftheTaxation.VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 153,975.35 | 441,363.70 |
| Bankdeposits | 543,923,045.33 | 684,620,907.41 |
| Othermonetaryassets | 93,136,985.38 | 115,897,765.58 |
| Total | 637,214,006.06 | 800,960,036.69 |
| Ofwhich:Totalamountdepositedoverseas | ||
| Totalamountofrestrictioninusebyguaranteed,pledgedorfrozen | 92,629,261.89 | 113,880,397.10 |
Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB92,629,261.89,ofwhichRMB90,770,574.15wasthecashdepositforbankacceptancebills,RMB986,662.74wascashdepositforL/C,andRMB872,025.00wascashdepositforenvironment.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsassignedmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses | 10,000,000.00 | 8,253,873.41 |
| Ofwhich:Financialproducts | 10,000,000.00 | 8,253,873.41 |
| Total | 10,000,000.00 | 8,253,873.41 |
Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 606,283,023.05 | 495,370,782.47 |
| Total | 606,283,023.05 | 495,370,782.47 |
(2)ThereWasNoNotesReceivablePledgedbytheCompanyatthePeriod-end
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedandhadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 366,776,726.29 | |
| Total | 366,776,726.29 |
(4)NotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreement
4.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 35,534,574.55 | 5.31% | 33,449,794.41 | 94.13% | 2,084,780.14 | 32,020,727.53 | 5.135 | 31,133,291.11 | 97.23% | 887,436.42 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithsignificantamountforwhichbaddebtprovisionseparatelyaccrued | 30,642,717.62 | 4.58% | 28,557,937.48 | 93.20% | 2,084,780.14 | 28,205,070.58 | 4.52% | 27,317,634.16 | 96.85% | 887,436.42 |
| Accountsreceivablewithinsignificantamountforwhichbaddebtprovisionseparatelyaccrued | 4,891,856.93 | 0.73% | 4,891,856.93 | 100.00% | 3,815,656.95 | 0.61% | 3,815,656.95 | 100.00% | ||
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 633,052,843.24 | 94.69% | 215,841,957.87 | 34.10% | 417,210,885.37 | 591,489,450.66 | 94.87% | 213,517,727.97 | 36.10% | 377,971,722.69 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 633,052,843.24 | 94.69% | 215,841,957.87 | 34.10% | 417,210,885.37 | 591,489,450.66 | 94.87% | 213,517,727.97 | 36.10% | 377,971,722.69 |
| Total | 668,587,417.79 | 100.00% | 249,291,752.28 | 37.29% | 419,295,665.51 | 623,510,178.19 | 100.00% | 244,651,019.08 | 39.24% | 378,859,159.11 |
Accountreceivableswithdrawnbaddebtprovisionseparatelywithsignificantamountintheperiodend:
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonofwithdrawal | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00 | Expectedtodifficultlyrecover |
| 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 | 2,445,367.85 | 2,177,128.33 | 89.03 | Expectedtodifficultlyrecover |
| Customer5 | 3,633,081.23 | 1,816,540.61 | 50.00 | Expectedtodifficultlyrecover |
| Customer6 | 3,279,100.00 | 3,279,100.00 | 100.00 | Expectedtodifficultlyrecover |
| Customer7 | 2,068,377.01 | 2,068,377.01 | 100.00 | Expectedtodifficultlyrecover |
| Customer8 | 5,359,381.00 | 5,359,381.00 | 100.00 | Difficulttorecover |
| Customer9 | 2,584,805.83 | 2,584,805.83 | 100.00 | Difficulttorecover |
| Customer10 | 1,684,504.84 | 1,684,504.84 | 100.00 | Difficulttorecover |
| Total | 30,642,717.62 | 28,557,937.48 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
| Aging | Endingbalance | ||
| Accountsreceivable | Baddebtprovision | Withdrawalproportion | |
| Within1year | 399,534,844.49 | 7,990,697.36 | 2.00% |
| 1to2years | 17,871,570.68 | 893,578.54 | 5.00% |
| 2to3years | 7,948,315.22 | 1,192,247.28 | 15.00% |
| 3to4years | 2,241,585.32 | 672,475.60 | 30.00% |
| 4to5years | 908,921.11 | 545,352.67 | 60.00% |
| Over5years | 204,547,606.42 | 204,547,606.42 | 100.00% |
| Total | 633,052,843.24 | 215,841,957.87 | -- |
Notesofthebasisofdeterminingthegroup:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsincurredactually,amongwhichtheaccountsincurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcredit
loss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 400,301,753.19 |
| 1to2years | 19,983,341.14 |
| 2to3years | 11,370,168.43 |
| Over3years | 236,932,155.03 |
| 3to4years | 4,987,170.10 |
| 4to5years | 1,346,662.43 |
| Over5years | 230,598,322.50 |
| Total | 668,587,417.79 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | ||
| Withdrawal | Reversalorrecovery | Write-off | |||
| Baddebtprovisionwithdrawnseparately | 31,133,291.11 | 3,347,105.92 | 1,030,602.62 | 33,449,794.41 | |
| Baddebtprovisionwithdrawnbygroup | 213,517,727.97 | 3,598,115.60 | 1,273,885.70 | 215,841,957.87 | |
| Total | 244,651,019.08 | 6,945,221.52 | 2,304,488.32 | 249,291,752.28 | |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)ThereWereNoParticularsoftheActualVerificationofAccountsReceivableduringtheReportingPeriod.
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 170,103,568.50 | 25.44% | 3,402,071.37 |
| Customer2 | 23,896,557.76 | 3.57% | 477,931.16 |
| Customer3 | 21,182,519.25 | 3.17% | 423,650.39 |
| Customer4 | 21,885,020.77 | 3.27% | 437,700.42 |
| Customer5 | 18,470,927.36 | 2.76% | 369,418.55 |
| Total | 255,538,593.64 | 38.21% | 5,110,771.87 |
5.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 10,819,576.65 | 83.67 | 9,535,876.40 | 84.01% |
| 1to2years | 993,030.99 | 7.68 | 437,529.70 | 3.85% |
| 2to3years | 115,335.90 | 0.89 | 57,536.24 | 0.51% |
| Over3years | 1,002,602.62 | 7.76 | 1,321,354.76 | 11.63% |
| Total | 12,930,546.16 | -- | 11,352,297.10 | -- |
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTarget
Attheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB5,494,349.33accountingfor42.49%ofthetotalendingbalanceofprepayments.
6.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | 0.00 | 0.00 |
| Dividendsreceivable | 0.00 | 0.00 |
| Otherreceivables | 10,597,073.18 | 9,244,584.42 |
| Total | 10,597,073.18 | 9,244,584.42 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Item | Endingcarryingamount | Beginningcarryingamount |
| Marginandcashpledge | 7,758.60 | 4,200.00 |
| Intercoursefunds | 25,293,372.77 | 25,451,250.34 |
| Pettycashandborrowingsbyemployees | 3,203,041.67 | 1,232,153.09 |
| Other | 15,374,916.41 | 15,546,601.57 |
| Total | 43,879,089.45 | 42,234,205.00 |
2)WithdrawalofBadDebtProvision
□Applicable□Notapplicable
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2019 | 32,989,620.58 | 32,989,620.58 | ||
| Balanceof1January2019intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage |
| WithdrawaloftheCurrentPeriod | 296,359.94 | 296,359.94 | |
| ReversaloftheCurrentPeriod | 3,964.25 | 3,964.25 | |
| Write-offsoftheCurrentPeriod | |||
| VerificationoftheCurrentPeriod | |||
| Otherchanges | |||
| Balanceof31December2019 | 33,282,016.27 | 33,282,016.27 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 7,635,227.47 |
| 1to2years | 1,651,595.88 |
| 2to3years | 1,531,378.71 |
| Over3years | 33,060,887.39 |
| 3to4years | 231,294.13 |
| 4to5years | 96,930.77 |
| Over5years | 32,732,662.49 |
| Total | 43,879,089.45 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance |
| Withdrawal | Reversalorrecovery | Write-off | Other |
| Baddebtprovisionwithdrawnseparately | 5,011,963.16 | 30,485.42 | 5,042,448.58 | ||
| Baddebtprovisionwithdrawnbygroup | 27,977,657.42 | 265,874.52 | 3,964.25 | 28,239,567.69 | |
| Total | 32,989,620.58 | 296,359.94 | 3,964.25 | 33,282,016.27 |
4)ThereWasNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
5)Top5oftheEndingBalanceoftheOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| ChangzhouChangjiangCastingMaterialsCo.,Ltd. | Intercoursefunds | 5,000,000.00 | Within1year | 11.39% | 100,000.00 |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 6.70% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 6.50% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 3.71% | 1,626,483.25 |
| ChangzhouGroupSettlementCentre | Intercoursefunds | 1,140,722.16 | Over5years | 2.60% | 1,140,722.16 |
| Total | -- | 13,560,393.43 | -- | 30.90% | 8,660,393.43 |
7.InventoriesWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Rawmaterials | 125,757,856.89 | 6,539,831.39 | 119,218,025.50 | 134,454,498.93 | 5,845,504.24 | 128,608,994.69 |
| Materialsprocessedoncommission | 12,444,566.41 | 183,111.28 | 12,261,455.13 | 13,330,233.29 | 993,300.18 | 12,336,933.11 |
| Goodsinprocess | 142,399,981.66 | 26,985,350.14 | 115,414,631.52 | 166,798,553.34 | 24,187,100.54 | 142,611,452.80 |
| Finishedgoods | 239,694,354.77 | 15,404,153.29 | 224,290,201.48 | 288,979,920.46 | 16,035,855.03 | 272,944,065.43 |
| Lowpricedandeasilywornarticles | 3,373,235.80 | 1,205,538.85 | 2,167,696.95 | 3,632,711.20 | 2,180,265.53 | 1,452,445.67 |
| Total | 523,669,995.53 | 50,317,984.95 | 473,352,010.58 | 607,195,917.22 | 49,242,025.52 | 557,953,891.70 |
(2)FallingPriceReservesofInventories
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Other | Reversalorwrite-off | Other | |||
| Rawmaterials | 5,845,504.24 | 707,004.81 | 12,677.66 | 6,539,831.39 | ||
| Materialsprocessedoncommission | 993,300.18 | 810,188.90 | 183,111.28 | |||
| Goodsinprocess | 24,187,100.54 | 26,985,350.14 | 24,187,100.54 | 26,985,350.14 | ||
| Finishedgoods | 16,035,855.03 | 15,194,526.31 | 15,826,228.05 | 15,404,153.29 | ||
| Lowpricedandeasilywornarticles | 2,180,265.53 | 974,726.68 | 1,205,538.85 | |||
| Total | 49,242,025.52 | 42,886,881.26 | 41,810,921.83 | 50,317,984.95 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories
(4)ThereWasNoCompletedbutUnsettledAssetsGeneratedfromConstructionContractsatthePeriod-end
8.OtherCurrentAssetsWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 6,014,692.92 | 25,962,369.29 |
| Prepaidexpense | 98,856.26 | 86,761.81 |
| Other | 240,371.15 | 54,604.46 |
| Total | 6,353,920.33 | 26,103,735.56 |
9.Creditor’sRightsInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Entrustedloan | 4,000,000.00 | 4,000,000.00 | ||||
| Total | 4,000,000.00 | 4,000,000.00 | ||||
Withdrawalofimpairmentprovision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) |
| Balanceof1January2019 | 4,000,000.00 | 4,000,000.00 | ||
| Balanceof1January2019intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | ||||
| ReversaloftheCurrentPeriod | 4,000,000.00 | 4,000,000.00 | ||
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof31December2019 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√Notapplicable
10.Long-termEquityInvestment
Unit:RMB
| Investees | Beginningbalance(carryingvalue) | ChangesintheReportingPeriod | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
| II.Associatedenterprises | |||||||||||
| BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 0 | 0 | 44,182.50 | |
| Subtotal | 0 | 0 | 44,182.50 | |
| Total | 0 | 0 | 44,182.50 |
11.OtherEquityInstrumentInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 100,000,000.00 | 100,000,000.00 |
| Otherequityinstrumentinvestmentmeasuredbyfairvalue | 432,886,000.00 | 370,940,000.00 |
| Total | 532,886,000.00 | 470,940,000.00 |
Disclosureofnon-tradingequityinstrumentinvestmentinthereportingperiodbyitem:
Unit:RMB
| Item | Recognizeddividendsincome | Accumulativegains | Accumulativelosses | Amountofothercompressiveincometransferredtoretainedearnings | Reasonforassigningtomeasureatfairvalueandchangesrecordedintoothercomprehensiveincome | Reasonofothercomprehensiveincometransferredtoretainedearnings |
| FotonMotorCo.,Ltd. | 39,015,000.00 | Non-tradingequityinvestment | ||||
| BankofJiangsu | 6,069,000.00 | 22,860,000.00 | Non-tradingequityinvestment |
| JiangsuExpresswayCo.,Ltd. | 71,000.00 | Non-tradingequityinvestment | ||
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Non-tradingequityinvestment | |||
| Total | 6,069,000.00 | 61,946,000.00 |
Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
ThestocksoflistedcompaniessuchasFotonMotorCo.,Ltd.heldbytheCompanybelongtonon-tradingequity
investment.Therefore,theinvestmentwasdividedintothefinancialassetsassignedmeasuredbyfairvalueandthechangesbeincludedintheothercomprehensiveincome.
12.OtherNon-currentFinancialAssets
Unit:RMB
Othernotes:
Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
13.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Total |
| Item | Endingbalance | Beginningbalance |
| JiangsuLianceElectromechanicalTechnologyCo.,Ltd. | 7,200,000.00 | 7,200,000.00 |
| KailongHighTechnologyCo.,Ltd. | 20,001,268.00 | 20,001,268.00 |
| GuizhouWarmenPharmaceuticalCo,Ltd. | 200,104.80 | 200,104.80 |
| GuizhouAndaEnergyTechnologyCo.,Ltd. | 195,297.49 | 195,297.49 |
| HenanLantianGasCo.,Ltd. | 160,744.76 | 160,744.76 |
| HebeiSongheRecyclingResourcesCo.,Ltd. | 104,699.44 | 104,699.44 |
| AnhuiHofoElectromechanicalCo.,Ltd. | 89,987.14 | 89,987.14 |
| JiangsuHoushengNewEnergyTechnologyCo.,Ltd. | 50,000,000.00 | |
| Total | 77,952,101.63 | 27,952,101.63 |
| I.Originalcarryingvalue | ||
| 1.Beginningbalance | 87,632,571.14 | 87,632,571.14 |
| 2.Increasedamountoftheperiod | ||
| (1)Outsourcing | ||
| (2)Transferfrominventories/fixedassets/constructioninprogress | ||
| (3)Enterprisecombinationincrease | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 87,632,571.14 | 87,632,571.14 |
| II.Accumulativedepreciationandaccumulativeamortization | ||
| 1.Beginningbalance | 36,976,563.51 | 36,976,563.51 |
| 2.Increasedamountoftheperiod | 2,208,340.80 | 2,208,340.80 |
| (1)Withdrawaloramortization | 2,208,340.80 | 2,208,340.80 |
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 39,184,904.31 | 39,184,904.31 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod | ||
| (1)Withdrawal | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue | ||
| 1.Endingcarryingvalue | 48,447,666.83 | 48,447,666.83 |
| 2.Beginningcarryingvalue | 50,656,007.63 | 50,656,007.63 |
14.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 457,582,514.13 | 511,250,371.37 |
| Disposaloffixedassets | 0.00 | 0.00 |
| Total | 457,582,514.13 | 511,250,371.37 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 447,076,373.55 | 936,110,914.94 | 18,083,828.53 | 44,422,389.46 | 1,445,693,506.48 |
| 2.Increasedamountoftheperiod | 2,093,189.79 | 27,049,532.05 | 1,361,109.97 | 30,503,831.81 | |
| (1)Purchase | 1,401,958.84 | 2,546,176.53 | 948,074.27 | 4,896,209.64 | |
| (2)Transferfromconstructioninprogress | 691,230.95 | 24,503,355.52 | 413,035.70 | 25,607,622.17 | |
| (3)Enterprisecombinationincrease | |||||
| 3.Decreasedamountoftheperiod | 480,902.12 | 7,022,206.81 | 800,658.99 | 3,574,856.25 | 11,878,624.17 |
| (1)Disposalorscrap | 480,902.12 | 7,022,206.81 | 800,658.99 | 3,574,856.25 | 11,878,624.17 |
| 4.Endingbalance | 448,688,661.22 | 956,138,240.18 | 17,283,169.54 | 42,208,643.18 | 1,464,318,714.12 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 265,778,832.18 | 619,622,564.64 | 13,341,638.03 | 34,205,985.26 | 932,949,020.11 |
15.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 63,216,445.03 | 59,851,682.79 |
| 2.Increasedamountoftheperiod | 16,273,258.83 | 61,230,582.50 | 1,287,627.97 | 4,506,366.79 | 83,297,836.09 |
| (1)Withdrawal | 16,273,258.83 | 61,230,582.50 | 1,287,627.97 | 4,506,366.79 | 83,297,836.09 |
| 3.Decreasedamountoftheperiod | 385,508.75 | 6,307,964.63 | 736,947.20 | 3,574,350.63 | 11,004,771.21 |
| (1)Disposalorscrap | 385,508.75 | 6,307,964.63 | 736,947.20 | 3,574,350.63 | 11,004,771.21 |
| 4.Endingbalance | 281,666,582.26 | 674,545,182.51 | 13,892,318.80 | 35,138,001.42 | 1,005,242,084.99 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | 1,494,115.00 | 1,494,115.00 | |||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposalorscrap | |||||
| 4.Endingbalance | 1,494,115.00 | 1,494,115.00 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 167,022,078.96 | 280,098,942.67 | 3,390,850.74 | 7,070,641.76 | 457,582,514.13 |
| 2.Beginningcarryingvalue | 181,297,541.37 | 314,994,235.30 | 4,742,190.50 | 10,216,404.20 | 511,250,371.37 |
| Engineeringmaterials | 28,141,711.21 | 29,238,701.92 |
| Total | 91,358,156.24 | 89,090,384.71 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Trialproductionworkshopprojecttechnologycenter | 14,349,461.80 | 14,349,461.80 | ||||
| Castingrenovationproject | 396,000.00 | 396,000.00 | ||||
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 11,375,531.74 | 11,375,531.74 | 11,371,098.24 | 11,371,098.24 | ||
| DieselEngineCylinderBodyFlexibleManufacturingLine | 38,266,788.31 | 38,266,788.31 | 19,061,813.95 | 19,061,813.95 | ||
| 35KVSubstation | 1,321,959.41 | 1,321,959.41 | 1,321,959.41 | 1,321,959.41 | ||
| Oilywaterseparatingequipment | 340,800.00 | 340,800.00 | ||||
| Relocationprojectoflightengineandcasting | 1,687,194.64 | 1,687,194.64 | ||||
| Equipmenttobeinstalledandpaymentforprojects | 10,224,170.93 | 10,224,170.93 | 13,351,349.39 | 13,351,349.39 | ||
| Total | 63,216,445.03 | 63,216,445.03 | 59,851,682.79 | 59,851,682.79 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulativeinvestmentinconstructionstobudget | Jobschedule | Accumulativeamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsintheReportingPeriod | CapitalizationrateofinterestsintheReportingPeriod | Capitalresources |
| Trialproductionworkshopprojecttechnologycenter | 22,896,300.00 | 14,349,461.80 | 14,349,461.80 | Uncompleted | Other |
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 79,000,000.00 | 11,371,098.24 | 4,433.50 | 11,375,531.74 | Uncompleted | Other | ||||
| DieselEngineCylinderBodyFlexibleManufacturingLine | 116,040,000.00 | 19,061,813.95 | 19,204,974.36 | 38,266,788.31 | Uncompleted | Other | ||||
| 35KVSubstation | 1,321,959.41 | 1,321,959.41 | Uncompleted | Other | ||||||
| Total | 217,936,300.00 | 46,104,333.40 | 19,209,407.86 | 14,349,461.80 | 50,964,279.46 | -- | -- | -- |
(3)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Engineeringmaterials | 28,141,711.21 | 28,141,711.21 | 29,238,701.92 | 29,238,701.92 | ||
| Total | 28,141,711.21 | 28,141,711.21 | 29,238,701.92 | 29,238,701.92 |
16.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Patentright | Licensefee | Total |
| I.Originalcarryingvalue | ||||
| 1.Beginningbalance | 144,770,507.85 | 11,517,579.94 | 5,488,000.00 | 161,776,087.79 |
| 2.Increasedamountoftheperiod | 1,433,300.90 | 1,433,300.90 | ||
| (1)Purchase | 1,433,300.90 | 1,433,300.90 | ||
| (2)InternalR&D | ||||
| (3)Businesscombinationincrease | ||||
| 3.Decreasedamountoftheperiod | 83,888.26 | 83,888.26 | ||
| (1)Disposal | 83,888.26 | 83,888.26 | ||
| 4.Endingbalance | 144,770,507.85 | 12,866,992.58 | 5,488,000.00 | 163,125,500.43 |
| II.Accumulatedamortization | ||||
| 1.Beginningbalance | 48,128,022.51 | 9,549,052.64 | 1,006,133.26 | 58,683,208.41 |
| 2.Increasedamountoftheperiod | 2,971,978.31 | 1,305,951.75 | 548,799.96 | 4,826,730.02 |
| (1)Withdrawal | 2,971,978.31 | 1,305,951.75 | 548,799.96 | 4,826,730.02 |
| 3.Decreasedamountoftheperiod | 83,888.26 | 83,888.26 | ||
| (1)Disposal | 83,888.26 | 83,888.26 | ||
| 4.Endingbalance | 51,100,000.82 | 10,771,116.13 | 1,554,933.22 | 63,426,050.17 |
| III.Depreciationreserves | ||||
| 1.Beginningbalance | ||||
| 2.Increasedamountoftheperiod | ||||
| (1)Withdrawal | ||||
| 3.Decreasedamountoftheperiod | ||||
| (1)Disposal | ||||
| 4.Endingbalance | ||||
| IV.Carryingvalue | ||||
| 1.Endingcarryingvalue | 93,670,507.03 | 2,095,876.45 | 3,933,066.78 | 99,699,450.26 |
| 2.Beginningcarryingvalue | 96,642,485.34 | 1,968,527.30 | 4,481,866.74 | 103,092,879.38 |
17.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenSet-off
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 6,682,163.90 | 1,023,856.52 | 6,401,000.68 | 979,822.71 |
| Total | 6,682,163.90 | 1,023,856.52 | 6,401,000.68 | 979,822.71 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxliabilities | Deductibletemporarydifference | Deferredincometaxliabilities | |
| Changesinfairvalueofotherequityinstrumentinvestment | 373,011,500.00 | 55,951,725.00 | ||
| Changesinfairvalueofavailable-for-salefinancialassets | 311,065,500.00 | 46,659,825.00 | ||
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 4,524,661.07 | 1,131,165.27 | 5,247,821.44 | 1,311,955.36 |
| Total | 377,536,161.07 | 57,082,890.27 | 316,313,321.44 | 47,971,780.36 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| baddebt | 375,416,184.97 | 271,239,638.98 |
| fallingpricereservesofinventories | 50,317,984.95 | 49,242,025.52 |
| Total | 425,734,169.92 | 320,481,664.50 |
18.OtherNon-currentAssetsWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Total | 0.00 | 0.00 |
Therewasnobalanceattheperiod-begin.Referto“XII.FinancialStatements(V)30.ChangesinMainAccountingPoliciesandEstimates-(2)InfluenceofExecutionofNewStandardsGoverningFinancialInstruments”forthedifferencebetweenbeginningbalanceandendingbalanceinthepriorperiod(31December2018)fordetails.
19.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageloans | 7,000,000.00 | 7,000,000.00 |
| Guaranteedloans | 10,000,000.00 | 10,000,000.00 |
| Creditloans | 5,000,000.00 | 10,000,000.00 |
| Total | 22,000,000.00 | 27,000,000.00 |
(2)ThereWasNoShort-termBorrowingsOverduebutUnpaid.
20.NotesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 403,035,000.00 | 438,375,400.00 |
| Total | 403,035,000.00 | 438,375,400.00 |
Theamountofnotespayableduebutunpaidattheperiod-endwasRMB0.
21AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Loans | 525,610,256.89 | 591,754,875.77 |
| Total | 525,610,256.89 | 591,754,875.77 |
(2)ThereWasNoSignificantAccountsPayableAgingoverOneYear
22.AdvancesfromCustomersWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
(1)ListofAdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Loan | 30,836,615.21 | 34,500,232.97 |
| Total | 30,836,615.21 | 34,500,232.97 |
(2)ThereWereNoSignificantAdvancesfromCustomersAgingoverOneYear
23.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 50,500,592.99 | 245,933,884.31 | 251,875,461.51 | 44,559,015.79 |
| II.Post-employmentbenefit-definedcontributionplans | 34,554,489.90 | 34,554,489.90 | ||
| III.Terminationbenefits | 284,193.00 | 284,193.00 | ||
| Total | 50,500,592.99 | 280,772,567.21 | 286,714,144.41 | 44,559,015.79 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 41,939,857.83 | 201,033,055.30 | 206,077,959.42 | 36,894,953.71 |
| 2.Employeewelfare | 89,592.74 | 3,658,998.62 | 3,746,998.62 | 1,592.74 |
| 3.Socialinsurance | 18,016,605.44 | 18,016,605.44 | ||
| Ofwhich:Medicalinsurancepremiums | 14,983,569.28 | 14,983,569.28 | ||
| Work-relatedinjuryinsurance | 1,491,692.35 | 1,491,692.35 | ||
| Maternityinsurance | 1,541,343.81 | 1,541,343.81 | ||
| 4.Housingfund | 19,198,174.00 | 19,198,174.00 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 8,471,142.42 | 4,027,050.95 | 4,835,724.03 | 7,662,469.34 |
| 6.Short-termabsencewithsalary | ||||
| 7.Short-termprofitsharingscheme | ||||
| Total | 50,500,52.99 | 245,933,884.31 | 251,875,461.51 | 44,559,015.79 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 33,571,411.49 | 33,571,411.49 | ||
| 2.Unemploymentinsurance | 983,078.41 | 983,078.41 | ||
| Total | 34,554,489.90 | 34,554,489.90 |
24.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 1,290,060.47 | 876,055.81 |
| Corporateincometax | 5,090,781.18 | 3,665,483.92 |
| Personalincometax | 367,624.40 | 140,662.05 |
| Urbanmaintenanceandconstructiontax | 970,067.92 | 993,210.56 |
| Propertytax | 94,257.20 | 94,256.40 |
| Landusetax | 100,135.19 | 100,135.19 |
| Stampduty | 6,282.95 | 4,594.61 |
| Educationsurcharge | 99,824.96 | 116,355.46 |
| Comprehensivefees | 1,075,134.76 | 1,075,134.76 |
| Environmentalprotectiontax | 213.55 | 197.13 |
| Total | 9,094,382.58 | 7,066,085.89 |
Othernotes:
25.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 199,948,693.36 | 195,520,817.07 |
| Total | 203,840,127.19 | 199,412,250.90 |
(1)DividendsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Ordinarystockdividends | 3,243,179.97 | 3,243,179.97 |
| Interestofpreferredshares/perpetualbondclassifiedasequityinstrument | ||
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
| Other | ||
| Total | 3,891,433.83 | 3,891,433.83 |
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Marginandcashpledged | 2,674,213.08 | 3,369,213.08 |
| Intercoursefundsamongunits | 10,791,973.79 | 10,977,924.77 |
| Intercoursefundsamongindividuals | 333,412.05 | 375,201.04 |
| Salesdiscountandthreeguarantees | 143,497,522.22 | 144,278,468.99 |
| Other | 42,651,572.22 | 36,520,009.19 |
| Total | 199,948,693.36 | 195,520,817.07 |
2)SignificantOtherPayablesAgingoverOneYear
Thesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
26.CurrentPortionofNon-currentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Currentportionoflong-termborrowings | 0.00 | 18,500,000.00 |
| Total | 0.00 | 18,500,000.00 |
Thecurrentportionoflong-termborrowingswasRMB18,500,000.00whichwastheborrowingfortechnicaltransformationprojectoftheCompanyastheparentprovidedbyChinaMerchantsBankChangzhouBranchwiththetermfrom20September2017to19September2019andtheinterestrateof4.75%.
27.OtherCurrentLiabilitiesWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 229,387.96 | |
| Transportationstoragefee | 132,551.86 | |
| Electriccharge | 815,772.56 | 2,082,985.18 |
| Total | 1,177,712.38 | 2,082,985.18 |
28.Long-termBorrowings
(1)CategoryofLong-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageloans | 0.00 | 2,000,000.00 |
| Total | 0.00 | 2,000,000.00 |
Themortgageloanattheperiod-endwasRMB2,000,000.00,whichwastheloanbythesubsidiary-ChangchaiWanzhoufromGaosuntangBranchofChongqingThreeGorgesBankwiththedurationfrom14December2017to6November2020andtheinterestrateof6.15%.Theloanhasbeenpaidoffinadvanceon24May2019.
29.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentsubsidies | 59,928,484.84 | 1,064,373.62 | 58,864,111.22 | Governmentappropriation | |
| Total | 59,928,484.84 | 1,064,373.62 | 58,864,111.22 | -- |
Iteminvolvinggovernmentsubsidies:
Unit:RMB
| Item | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Electriccontrolofdieselengineresearchanddevelopmentandindustrializationallocations | 646,800.00 | 398,400.00 | 248,400.00 | Relatedtoassets | ||
| Nationalmajorprojectspecialallocations | 28,770,000.00 | 28,770,000.00 | Relatedtoassets | |||
| Removecompensation | 20,511,684.84 | 665,973.62 | 19,845,711.22 | Relatedtoassets |
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 10,000,000.00 | 10,000,000.00 | Relatedtoassets | |||
| Total | 59,928,484.84 | 1,064,373.62 | 58,864,111.22 |
30.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 561,374,326.00 | 561,374,326.00 | |||||
31.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium(premiumonstock) | 143,990,690.24 | 143,990,690.24 | |
| Othercapitalreserves | 20,337,975.19 | 20,337,975.19 | |
| Total | 164,328,665.43 | 164,328,665.43 |
32.OtherComprehensiveIncome
Unit:RMB
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredtoprofitorlossintheCurrentPeriod | Less:RecordedintoothercomprehensiveincomeinpriorperiodandtransferredtoretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 264,405,675.00 | 61,946,000.00 | 9,291,900.00 | 52,654,100.00 | 317,059,775.00 | |||
| Ofwhich:Changescausedbyre-measurementsondefinedbenefitpensionschemes | ||||||||
| Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||||||||
| Changesinfairvalueofotherequityinstrumentinvestment | 264,405,675.00 | 61,946,000.00 | 9,291,900.00 | 52,654,100.00 | 317,059,775.00 | ||
| Changesinfairvalueofcorporatecreditrisk | |||||||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | |||||||
| Ofwhich:Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | |||||||
| Changesinfairvalueofothercreditor’srightsinvestment | |||||||
| Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | |||||||
| Creditdepreciationreservesofothercreditor’srightsinvestment | |||||||
| Reservesforcashflowhedges | |||||||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | |||||||
| Totalofothercomprehensiveincome | 264,405,675.00 | 61,946,000.00 | 9,291,900.00 | 52,654,100.00 | 317,059,775.00 |
33.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 15,182,958.83 | 3,868,727.07 | 1,491,483.83 | 17,560,202.07 |
| Total | 15,182,958.83 | 3,868,727.07 | 1,491,483.83 | 17,560,202.07 |
34.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 306,976,192.25 | 2,093,650.19 | 309,069,842.44 | |
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 320,133,050.15 | 2,093,650.19 | 322,226,700.34 |
35.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 717,883,351.33 | 679,131,047.06 |
| Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | ||
| Beginningbalanceofretainedearningsafteradjustments | 717,883,351.33 | 679,131,047.06 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 24,934,586.11 | 62,021,374.04 |
| Less:Withdrawalofstatutorysurplusreserves | 2,093,650.19 | 6,427,839.99 |
| Withdrawalofdiscretionalsurplusreserves | ||
| Withdrawalofgeneralreserve | ||
| Dividendofordinarysharespayable | 14,034,358.15 | 16,841,229.78 |
| Dividendsofordinarysharestransferredassharecapital | ||
| Endingretainedearnings | 726,689,929.10 | 717,883,351.33 |
36.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 2,001,911,782.04 | 1,679,856,891.00 | 2,093,039,249.58 | 1,782,146,126.35 |
| Otheroperations | 38,221,935.26 | 29,792,886.75 | 39,863,469.02 | 31,298,459.31 |
| Total | 2,040,133,717.30 | 1,709,649,777.75 | 2,132,902,718.60 | 1,813,444,585.66 |
WhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
37.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 955,480.56 | 1,538,140.51 |
| Educationsurcharge | 682,129.42 | 1,098,335.32 |
| Propertytax | 4,692,583.81 | 4,720,363.62 |
| Landusetax | 3,813,015.72 | 3,813,015.72 |
| Vehicleandvesselusetax | 1,320.00 | 1,920.00 |
| Stampduty | 541,541.14 | 1,046,929.90 |
| Environmenttax | 238,068.00 | 194,011.91 |
| Other | 34,933.24 | 120,012.70 |
| Total | 10,959,071.89 | 12,532,729.68 |
38.SellingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Officeexpenses | 15,164,256.65 | 15,226,739.67 |
| Employee’sremuneration | 29,850,039.44 | 30,898,847.11 |
| Salespromotionalexpense | 5,260,765.63 | 11,065,465.84 |
| Threeguarantees | 38,321,773.50 | 59,459,243.39 |
| Transportcharge | 7,296,670.11 | 7,875,890.07 |
| Other | 1,191,611.72 | 2,470,880.79 |
| Total | 97,085,117.05 | 126,997,066.87 |
39.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Officeexpenses | 11,008,664.40 | 13,620,335.64 |
| Employee’sremuneration | 55,260,415.45 | 63,552,532.88 |
| Depreciationandamortization | 11,164,412.83 | 12,141,787.46 |
| Transportfees | 2,035,060.15 | 2,203,781.08 |
| Repaircharge | 391,744.51 | 918,265.20 |
| Safetyexpenses | 3,868,727.07 | 4,135,805.99 |
| Other | 22,454,108.99 | 19,455,330.71 |
| Total | 106,183,133.40 | 116,027,838.96 |
40.R&DExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 39,929,867.41 | 44,893,971.91 |
| Employee’sremuneration | 19,795,993.59 | 22,101,113.31 |
| Depreciationandamortization | 3,926,467.26 | 2,812,179.10 |
| EntrustedR&Dcharges | 26,000.00 | 700,000.00 |
| Other | 2,543,048.01 | 1,675,576.46 |
| Total | 66,221,376.27 | 72,182,840.78 |
41.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 5,722,554.43 | 4,553,608.46 |
| Less:Interestincome | 6,719,990.78 | 4,665,445.23 |
| Netforeignexchangegainsorlosses | -1,709,183.70 | -6,194,688.23 |
| Other | -1,718,251.11 | 5,402,762.70 |
| Total | -4,424,871.16 | -903,762.30 |
42.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Governmentsubsidies | 5,312,295.51 | 6,291,685.65 |
43.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | ||
| Investmentincomefromdisposaloflong-termequityinvestment | ||
| Investmentincomefromholdingoftradingfinancialassets | ||
| Investmentincomefromdisposaloftradingfinancialassets | ||
| Dividendincomefromholdingofotherequityinstrumentinvestment | 6,069,000.00 | |
| Investmentincomefromholdingofheld-to–maturityinvestment | ||
| Investmentincomefromholdingofavailable-for-salefinancialassets | 7,607,870.00 | |
| Investmentincomefromdisposalofavailable-for-salefinancialassets | 104,824,084.63 | |
| Investmentincomefromdisposalofheld-to–maturityinvestment | ||
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
| Interestincomefromholdingofcreditor’srightsinvestment | ||
| Interestincomefromholdingofothercreditor’srightsinvestment | ||
| Investmentincomefromdisposalofothercreditor’srightsinvestment | ||
| Investmentincomefromdisposalofothernon-currentfinancialassets | -18,685.03 | |
| Investmentincomefromholdingofothernon-currentfinancialassets | 1,408,752.61 | |
| Investmentincomefromdisposaloffinancialproductsofsecuritiescompany | 354,829.53 | 838,870.20 |
| Otherincomefromholdingofequityinstrumentinvestment | 137,814.50 | |
| Total | 7,951,711.61 | 113,270,824.83 |
44.GainonChangesinFairValue
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Tradingfinancialassets | -49,255.00 | |
| Ofwhich:gainonchangesinfairvalueofderivativefinancialinstrument | -49,255.00 | |
| Total | -49,255.00 |
45.CreditImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofotherreceivables | -292,395.68 | |
| Baddebtlossofaccountsreceivable | -4,640,733.21 | |
| Impairmentlossofentrustedloan | 4,000,000.00 | |
| Total | -933,128.89 |
46.AssetImpairmentLossWhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| I.Baddebtloss | -5,459,103.29 | |
| II.Lossoninventoryvaluationandcontractperformancecost | -42,371,202.17 | -42,139,394.79 |
| III.Impairmentlossonavailable-for-salefinancialassets | ||
| IV.Impairmentlossonheld-to-maturityinvestment | ||
| V.Impairmentlossonlong-termequityinvestment | ||
| VI.Impairmentlossoninvestmentproperty | ||
| VII.Impairmentlossonfixedassets |
| VIII.Impairmentlossonengineeringmaterials | ||
| IX.Impairmentlossonconstructioninprogress | ||
| X.Impairmentlossonproductivelivingassets | ||
| XI.Impairmentlossonoilandgasassets | ||
| XII.Impairmentlossonintangibleassets | ||
| XIII.Impairmentlossongoodwill | ||
| XIV.Other | -10,000,000.00 | |
| Total | -42,371,202.17 | -37,598,498.08 |
47.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Fixedassetdisposalincome | 2,059,668.56 | 662,151.89 |
48.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Insuranceindemnity | 1,179,518.37 | ||
| Incomefrompenalty | 373,200.44 | 112,645.60 | 373,200.44 |
| Incomegeneratedfromdisposalofcurrentassets | 502,640.00 | ||
| Other | 59,319.94 | 144,191.79 | 59,319.94 |
| Notneedtopay | 13,825.00 | 13,825.00 | |
| Total | 446,345.38 | 1,938,995.76 | 446,345.38 |
49.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Lossondisposalofnon-currentassets | 145,531.09 | 928,118.57 | 145,531.09 |
| Lossondisposalofcurrentassets | 539,665.92 | ||
| Other | 73,810.45 | 6,434.00 | 73,810.45 |
| Total | 219,341.54 | 1,474,218.49 | 219,341.54 |
50.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | SamePeriodoflastyear |
| Currentincometaxexpense | 1,929,642.45 | 13,721,905.60 |
| Deferredincometaxexpense | -224,823.90 | -176,242.93 |
| Total | 1,704,818.55 | 13,545,662.67 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | 26,657,205.56 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 3,998,580.82 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | 300,367.06 |
| Influenceofincometaxbeforeadjustment | -6,783,397.42 |
| Influenceofnon-taxableincome | -974,350.00 |
| Influenceofnon-deductablecosts,expensesandlosses | 228,027.17 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | 8,530,167.41 |
| Taxpreferencegeneratedfromeligibleexpense | -3,594,576.49 |
| Incometaxexpense | 1,704,818.55 |
51.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 4,247,921.89 | 5,227,312.03 |
| Otherintercoursesincash | 79,063.29 | 2,429,574.19 |
| Interestincome | 6,974,058.50 | 4,665,445.23 |
| Other | 378,925.22 | |
| Total | 11,679,968.90 | 12,322,331.45 |
Notes:
(2)CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingexpensepaidincash | 62,490,016.60 | 70,472,280.14 |
| Administrativeexpensepaidincash | 57,388,527.86 | 44,119,952.70 |
| Handlingcharge | 937,381.75 | 517,221.04 |
| Other | 317,407.08 | 1,494,483.87 |
| Total | 121,133,333.29 | 116,603,937.75 |
52.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
| Netprofit | 24,952,387.01 | 62,166,697.84 |
| Add:Provisionforimpairmentofassets | 43,304,331.06 | 37,598,498.08 |
| Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 85,506,176.89 | 86,806,660.70 |
| Depreciationofright-to-useassets | ||
| Amortizationofintangibleassets | 4,826,730.02 | 5,248,080.61 |
| Amortizationoflong-termdeferredexpenses | ||
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -2,059,668.56 | -662,151.89 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | 145,531.09 | 928,118.57 |
| Lossesonthechangesinfairvalue(gainsby“-”) | 49,255.00 | |
| Financialexpenses(gainsby“-”) | 5,007,157.46 | 4,553,608.46 |
| Investmentlosses(gainsby“-”) | -7,951,711.61 | -113,270,824.83 |
| Decreaseindeferredincometaxassets(increaseby“-”) | -44,033.81 | 27,131.10 |
| Increaseindeferredincometaxliabilities(decreaseby“-”) | -180,790.09 | -203,374.03 |
| Decreaseininventory(increaseby“-”) | 42,230,678.95 | -91,846,479.01 |
| Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -139,462,798.46 | 232,739,906.78 |
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | -99,430,107.30 | 63,742,812.33 |
| Other | 22,564,004.83 | -14,009,157.82 |
| Netcashflowsgeneratedfromoperatingactivities | -20,542,857.52 | 273,819,526.89 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | -- | -- |
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | -- | -- |
| Endingbalanceofcash | 544,584,744.17 | 687,079,639.59 |
| Less:Beginningbalanceofcash | 687,079,639.59 | 325,263,654.43 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -142,494,895.42 | 361,815,985.16 |
(2)CashandCashEquivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 544,584,744.17 | 687,079,639.59 |
| Including:Cashonhand | 153,975.35 | 441,363.70 |
| Bankdepositondemand | 543,923,045.33 | 684,620,907.41 |
| Othermonetaryassetsondemand | 507,723.49 | 2,017,368.48 |
| Accountsdepositedinthecentralbankavailableforpayment | ||
| Depositsinotherbanks | ||
| Accountsofinterbank | ||
| II.Cashequivalents | ||
| Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
| III.Endingbalanceofcashandcashequivalents | 544,584,744.17 | 687,079,639.59 |
| Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
53.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Endingcarryingvalue | Reasonforrestriction |
| Monetaryassets | 92,629,261.89 | Ascashdepositforbankacceptancebill |
| Housesandbuildings | 2,936,446.13 | Mortgagedforborrowingsfrombanks |
| Landuseright | 995,328.00 | Mortgagedforborrowingsfrombanks |
| Machineryequipment | 48,181,935.62 | Mortgagedforborrowingsfrombanks |
| Total | 144,742,971.64 | -- |
54.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | -- | -- | |
| Ofwhich:USD | 12,870,806.64 | 6.9762 | 89,789,321.28 |
| EUR |
| HKD | 280,787.13 | 0.8958 | 251,529.11 |
| SGD | 54,427.95 | 5.1739 | 281,604.77 |
| JPY | 19,477,137.00 | 0.0641 | 1,248,484.48 |
| Accountsreceivable | -- | -- | |
| Ofwhich:USD | 9,340,696.90 | 6.9762 | 65,162,569.71 |
| Accountspayable | - | ||
| Ofwhich:USD | 302.60 | 6.9762 | 2,111.00 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
55.GovernmentSubsidy
(1)BasicInformationonGovernmentSubsidy
Unit:RMB
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Trinitysubsidy | 674,000.00 | Otherincome | 674,000.00 |
| Subsidyforstabilizingposts | 2,162,251.03 | Otherincome | 2,162,251.03 |
| ResearchfundforagriculturalmachinerypollutantdischargecontroltechnologyandsystemofLuoyangtractorsresearchlaboratory | 156,000.00 | Otherincome | 156,000.00 |
| ResearchfundforagriculturaldieselenginecleancombustionkeytechnologyofWuhanUniversityofTechnology | 59,400.00 | Otherincome | 59,400.00 |
| ECIsubsidy | 474,400.00 | Otherincome | 474,400.00 |
| Relocationcompensation | 665,973.62 | Otherincome | 665,973.62 |
| Patentrewards | 200,000.00 | Otherincome | 200,000.00 |
| FundforhillsidetractorkeytechnologyresearchandcompletemachinedevelopmentofJiangsuUniversity | 96,959.20 | Otherincome | 96,959.20 |
| R&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 398,400.00 | Otherincome | 398,400.00 |
| Taxcontributionsreward | 80,000.00 | Otherincome | 80,000.00 |
| Industrydevelopmentfund | 60,000.00 | Otherincome | 60,000.00 |
| Otherrewardsandsubsidies | 59,611.66 | Otherincome | 59,611.66 |
| Appropriationofothertechnologicalprojects | 225,300.00 | Otherincome | 225,300.00 |
| AppropriationforR&Dandindustrializationofoff-roaddieselenginecontrolledbyelectricity | 248,400.00 | Deferredincome | |
| Nationalmajorspecialappropriation | 28,770,000.00 | Deferredincome | |
| Relocationcompensation | 19,845,711.22 | Deferredincome | |
| AppropriationorresearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 10,000,000.00 | Deferredincome |
ReturnofGovernmentSubsidy
□Applicable√Notapplicable
VIII.ChangesofConsolidationScope
1.ChangesinCombinationScopeforOtherReasonsNotetochangesincombinationscopeforotherreasons(suchasnewlyestablishmentorliquidationofsubsidiaries,etc.)andrelevantinformation:
On25February2019,theinterimboardmeetingheldbytheCompany,examinedandapprovedtheProposalonEstablishingWholly-ownedSubsidiarytoImplementtheProductionProjectofLightDutyEngineandCasting,andagreedtheCompanytosetupawholly-ownedsubsidiaryinRMB300milliontoimplementtheproductionproject.RefertoAnnouncementofForeignInvestmentandEstablishingtheWholly-ownedSubsidiary(AnnouncementNo.2019-004)inSecurityTimes,TaKungPaoandthecninfowebsiteon26February2019fordetails.
On6March2019,thewholly-ownedsubsidiarycompletedtheregistrationproceduresandgainedthebusinesslicenseissuedbyAdministrativeApprovalBureauofChangzhouNationalHigh-techIndustryDevelopmentZone(XinbeiDistrict).RefertoAnnouncementofProceduresofForeignInvestmentandEstablishingtheWholly-ownedSubsidiary(AnnouncementNo.2019-005)inSecurityTimes,TaKungPaoandthecninfowebsiteon7March2019fordetails.
IX.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 |
| ChangzhouHoushengInvestmentCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | Changzhou | Changzhou | Industry | 70.00% | 25.00% | Set-up |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Combinationnotunderthesamecontrol | |
| JiangsuChangchaiMachineryCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 64,142.17 | 19,613,948.72 | |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 5.00% | -46,341.27 | 22,332.29 |
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. | 43,807,991.71 | 25,821,314.00 | 69,629,305.71 | 20,594,433.90 | 20,594,433.90 | 44,946,886.20 | 26,693,776.10 | 71,640,662.30 | 20,766,145.92 | 2,000,000.00 | 22,766,145.92 | |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 28,573,892.12 | 514,669.94 | 29,088,562.06 | 28,641,916.23 | 28,641,916.23 | 35,776,302.79 | 625,680.72 | 36,401,983.51 | 35,028,512.30 | 35,028,512.30 |
Unit:RMB
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40,959,222.43 | 160,355.43 | 160,355.43 | 1,526,529.99 | 46,653,660.46 | 1,117,933.80 | 1,117,933.80 | 1,632,974.66 |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 13,888,579.77 | -926,825.38 | -926,825.38 | -419,750.02 | 17,505,784.08 | -6,036,994.34 | -6,036,994.34 | -1,896,203.08 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018,newpartners
wereadded.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhuandTongYinxin.InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.X.TheRiskRelatedtoFinancialInstrumentsThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.
ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRisk
Creditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.
ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable.Inordertocontroltherisk,theCompanyconductsthefollowingmethods.
TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.
(II)LiquidityRisk
Liquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.
TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.
(III)MarketRisk
Marketriskisreferredtoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,including:foreignexchangeraterisk,interestraterisk.
1.InterestRateRisk
Interestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRisk
Foreignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,theCompany’saccountsreceivablewillincurforeigncurrencyexchangeloss.XI.TheDisclosureofFairValue
1.TheDisclosureofFairValue
Unit:RMB
| Item | Endingfairvalue |
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Financialassetsatfairvaluethroughprofitorloss | 432,886,000.00 | 187,952,101.63 | 620,838,101.63 | |
| 1.Tradingfinancialassets | 87,952,101.63 | 87,952,101.63 | ||
| (1)Debtinstrumentinvestment | 10,000,000.00 | 10,000,000.00 | ||
| (2)Equityinstrumentinvestment | 77,952,101.63 | 77,952,101.63. | ||
| (3)Derivativefinancialassets | ||||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherbondinvestment | ||||
| (III)Otherequityinstrumentinvestment | 432,886,000.00 | 100,000,000.00 | 532,886,000.00 | |
| (2)Equityinstrumentinvestment | ||||
| (IV)Investmentproperty | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuserightheldandplantobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Totalassetsconsistentlymeasuredbyfairvalue | 432,886,000.00 | 187,952,101.63 | 620,838,101.63 | |
| (VI)Tradingfinancialliabilities | ||||
| Ofwhich:Issuedtradingbonds | ||||
| Derivativefinancialliabilities |
| Other | ||||
| (VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
| Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
| II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
| (1)Held-to-saleassets | ||||
| Totalassetsinconsistentlymeasuredbyfairvalue | ||||
| Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Theavailable-for-salefinancialassetsmeasuredatfairvalueoftheCompanywereshareswiththeclosingpriceasthebasisoffairvaluecalculationatperiod-end.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)IntermsoftradingfinancialassetsheldbytheCompany,astheunderlyingassetsthroughfinancialproductsinvestmentincludecash,bondrepurchase,bankdeposit,interbankloan,nationalbankandcentralbankbill,etc.,theassetsportfolioinvestedwereexecuteddynamicmanagement,whilethefairvalueoffinancialproductsisdifficulttomeasure,sothefairvalueshallberecognizedbyadoptingcostamount.
(2)Intermsofnon-tradingfinancialassets,withregardtotheequityinstrumentinvestmentwithoutactivemarkettransactions,includingthecapitalinvestmenttoJiangsuHoushengNewEnergyTechnologyCo.,Ltd.,JiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd.,andnosignificantimpactduetothelowequityoftheinvestedcompaniesheldbytheCompany,sotheappraisementtotheinvestedcompaniesbyincomeormarketapproachwasunfeasible.Therefore,theinvestmentcostshallberegardedasreasonableestimationoffairvaluetomeasureattheperiod-end.
IntermsofsharesofNEEQunlistedpubliccompaniesheldbytheCompany,asfortheequityinstrumentinvestmentwithinactivemarkettransactions,duetothemarketvalueofsharescannotbereflectedbythemarkettransactionpricewiththelowvolumeofholding,sotheappraisementtotheinvestedcompaniesbyincomeormarketapproachwasunfeasible.Therefore,theinvestmentcostshallberegardedasreasonableestimationoffairvaluetomeasureattheperiod-end.
(3)Intermsofotherequityinstrumentinvestment,therewasnosignificantchangesinbusinessenvironmentandcircumstanceandfinancialconditionofChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership),andthustheinvestmentcostshallberegardedasreasonableestimationoffairvaluetomeasureat
theperiod-end.XII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
| ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc. | RMB1.2billion | 30.43% | 30.43% |
Notes:InformationontheCompanyastheparent
On22November2018,ChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontransferredall170,845,236sharesoftheCompany(accountingfor30.43%ofthetotalsharecapitaloftheCompany)toChangzhouInvestmentGroupCo.,Ltd.forfree.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),boththeCompanyandChangzhouInvestmentGroupCo.,Ltd.areenterpriseswhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,afterthesharertransfer,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteIXfordetails.
3.InformationonOtherRelatedParties
| Name | RelationshipwiththeCompany |
| SynergeticInnovationFundManagementCo.,Ltd. | ThedirectoroftheCompanyservesastheseniormanagementofthecompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHoushengNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
4.Related-partyTransactions
(1)AssetTransferandDebtRestructuringofRelatedParty
| Relatedparty | Content | ReportingPeriod | Sameperiodoflastyear |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Equitytransfer(JiangsuHoushengNewEnergyTechnologyCo.,Ltd.) | 50,000,000.00 |
XIII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentonthebalancesheetdateAsof31December2019,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDatePreviouslitigationscontinuingtotheReportingPeriodtheCompanyinvolved:
| Nameofdefendant | Dateofaccepted | Nameofthelitigationorarbitrationinstitutions | Amountinvolved(RMB’0,000) | Remark |
| ShandongHongliGroupCo.,Ltd. | 27June2001 | ChangzhouIntermediatePeople’sCourt | 1,436.00 | Underthebankruptcyandliquidation |
Notes:
AboutthelawsuitcaseofShandongHongliGroupCo.,Ltd.,theaccusedcompanyowedaccumulativelyRMB14.36milliontotheCompany.TheCompanysuedtoChangzhouIntermediatePeople’sCourtin2001andsuedforcompulsoryexecutioninApril2002.Currently,thedefendanthasstartedthebankruptcyprocedure.Theaforesaidpaymenthasarrangedforthefullprovisionforbaddebts.
XIV.EventsafterBalanceSheetDate
1.ProfitDistribution
Unit:RMB
| Profitsordividendstobedistributed | 0 |
2.NotestoOtherEventsafterBalanceSheetDate
AftertheoutbreakoftheepidemicofCOVID-19,theCompanyrespondedpromptlyandsetupepidemicpreventiongroupheadedbythegeneralmanagertodirectthepreventioninallrespects.Thematerialsforepidemicpreventionwereadequate,andtheCompanyhasorganizedtheemergencyexercisewiththestaffofalllevelstoensuresafeproductionandtocontrolandprevent.TheparentoftheCompanyreturnedtoworkon11February2020,andothersubsidiariessuccessivelyafter7to15daysaswell.Duetothedifferenttimeinworkresumptionofeachproductionprocess,theproductionefficiencywasinfluencedtosomeextent.Duetotheunevenreturntimeofeachproductionprocess,theproductionefficiencyisgreatlyaffected,andthedeliverypressureofthecompanyislarge.Tosumup,therewasnegativeinfluenceoftheepidemictotheoperationperformanceinthefirstquarterofCompanytosomeextent,butinsignificantinfluencetotheyearlyperformance.XV.OtherSignificantEvents
1.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegment
DuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommonmanagement,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
2.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-making
Asoftheapprovalissuedateoffinancialstatements,theCompanydidnotcompletetheliquidationproceduresof2019annualenterpriseincometax.
XVI.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 37,510,056.90 | 6.66% | 33,788,291.86 | 90.08% | 3,721,765.04 | 35,823,767.01 | 6.85% | 32,806,077.14 | 91.58% | 3,017,689.87 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 32,618,199.97 | 5.79% | 28,896,434.93 | 88.59% | 3,721,765.04 | 32,008,110.06 | 6.12% | 28,990,420.19 | 90.57% | 3,017,689.87 |
| Accountsreceivablewithinsignificantsingleamountforwhichbaddebtprovisionseparatelyaccrued | 4,891,856.93 | 0.87% | 4,891,856.93 | 100.00% | 3,815,656.95 | 0.73% | 3,815,656.95 | 100.00% | ||
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 525,874,423.56 | 93.34% | 192,148,650.56 | 36.54% | 333,725,773.00 | 487,566,507.88 | 93.15% | 190,226,913.94 | 39.02% | 297,339,593.94 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 525,874,423.56 | 93.34% | 192,148,650.56 | 36.54% | 333,725,773.00 | 487,566,507.88 | 93.15% | 190,226,913.94 | 39.02% | 297,339,593.94 |
| Total | 563,384,480.46 | 100.00% | 225,936,942.42 | 40.10% | 337,447,538.04 | 523,390,274.89 | 100.00% | 223,032,991.08 | 42.61% | 300,357,283.81 |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod:
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| Customer1 | 1,975,482.35 | 338,497.45 | 17.13% | Expectedtodifficultlyrecover |
| Customer2 | 1,470,110.64 | 1,470,110.64 | 100.00% | Expectedtodifficultlyrecover |
| Customer3 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer4 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer5 | 2,445,367.85 | 2,177,128.33 | 89.03% | Expectedtodifficultlyrecover |
| Customer6 | 3,633,081.23 | 1,816,540.62 | 50.00% | Expectedtodifficultlyrecover |
| Customer7 | 3,279,100.00 | 3,279,100.00 | 100.00% | Expectedtodifficultlyrecover |
| Customer8 | 2,068,377.01 | 2,068,377.01 | 100.00% | Expectedtodifficultlyrecover |
| Customer9 | 5,359,381.00 | 5,359,381.00 | 100.00% | Difficulttorecover |
| Customer10 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer11 | 1,684,504.84 | 1,684,504.84 | 100.00% | Difficulttorecover |
| Total | 32,618,199.97 | 28,896,434.94 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 323,342,224.45 | 6,466,844.49 | 2.00% |
| 1to2years | 12,433,193.78 | 621,659.69 | 5.00% |
| 2to3years | 4,709,436.22 | 706,415.43 | 15.00% |
| 3to4years | 960,385.32 | 288,115.60 | 30.00% |
| 4to5years | 908,921.11 | 545,352.67 | 60.00% |
| Over5years | 183,520,262.68 | 183,520,262.68 | 100.00% |
| Total | 525,874,423.56 | 192,148,650.56 | -- |
Notestothebasisforthedeterminationofthegroups:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsoccurredactually,amongwhichtheaccountsoccurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 324,694,509.71 |
| 1to2years | 14,957,898.01 |
| 2to3years | 8,536,920.63 |
| Over3years | 215,195,152.11 |
| 3to4years | 4,031,389.90 |
| 4to5years | 1,346,662.43 |
| Over5years | 209,817,099.78 |
| Total | 563,384,480.46 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 32,806,077.14 | 3,347,105.91 | 2,364,891.19 | 33,788,291.86 | |
| Baddebtprovisionwithdrawnbygroup | 190,226,913.94 | 2,808,078.37 | 886,341.75 | 192,148,650.56 | |
| Total | 223,032,991.08 | 6,155,184.28 | 3,251,232.94 | 225,936,942.42 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No
(3)ThereWasNoParticularsoftheActualVerificationofAccountsReceivableduringtheReportingPeriod
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 170,103,568.50 | 30.19% | 3,402,071.37 |
| Customer2 | 23,896,557.76 | 4.24% | 477,931.16 |
| Customer3 | 21,182,519.25 | 3.76% | 423,650.39 |
| Customer4 | 21,885,020.77 | 3.88% | 437,700.42 |
| Customer5 | 18,470,927.36 | 3.28% | 369,418.55 |
| Total | 255,538,593.64 | 45.35% |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 23,639,899.46 | 21,681,331.85 |
| Total | 23,639,899.46 | 21,681,331.85 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| CashdepositandMargin | 4,200.00 | 4,200.00 |
| Intercoursefundsamongunits | 38,535,333.35 | 36,267,607.16 |
| Pettycashandborrowingsbyemployees | 624,083.07 | 596,876.87 |
| Other | 15,373,206.41 | 15,364,366.83 |
| Total | 54,536,822.83 | 52,233,050.86 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2019 | 30,551,719.01 | 30,551,719.01 | ||
| Balanceof1January2019intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | 345,204.36 | 345,204.36 | ||
| ReversaloftheCurrentPeriod | ||||
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod |
| Otherchanges | |||
| Balanceof31December2019 | 30,896,923.37 | 30,896,923.37 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 21,069,950.51 |
| 1to2years | 1,594,927.07 |
| 2to3years | 1,513,504.75 |
| Over3years | 30,358,440.50 |
| 3to4years | 215,594.13 |
| 4to5years | 96,930.77 |
| Over5years | 30,045,915.60 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 5,011,963.16 | 30,485.42 | 5,042,448.58 | |||
| Baddebtprovisionwithdrawnbygroup | 25,539,755.85 | 314,718.94 | 25,854,474.79 | |||
| Total | 30,551,719.01 | 345,204.36 | 30,896,923.37 | |||
Otherreceivableswithsignificantamountwithdrawnbaddebtprovisionseparatelyattheperiod-end:
Unit:RMB
| Otherreceivables | Carryingamount | Baddebtprovision | Withdrawalproportion(%) | Withdrawalreason |
| ChangchaiGroupImp.&Exp.Co., | 2,853,188.02 | 2,853,188.02 | 100 | Difficultto |
| Ltd. | recover | |||
| Total | 2,853,188.02 | 2,853,188.02 |
4)ParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod:No.
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Intercoursefunds | 10,000,000.00 | Within1year | 18.34% | 200,000.00 |
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 9,215,263.56 | Within1yearwithRMB8,088,841.90,1to2yearswithRMB1,126,421.66 | 16.90% | 218,097.92 |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 5.39% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 5.23% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCentre | Intercoursefunds | 1,626,483.25 | Over5years | 2.98% | 1,626,483.25 |
| Total | -- | 26,634,934.83 | -- | 48.84% | 7,837,769.19 |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 251,752,730.03 | 0.00 | 251,752,730.03 | 241,752,730.03 | 0.00 | 241,752,730.03 |
| Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 0.00 | 44,182.50 | 44,182.50 | 0.00 |
| Total | 251,796,912.53 | 44,182.50 | 251,752,730.03 | 241,796,912.53 | 44,182.50 | 241,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investees | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofdepreciationreserves | Other | ||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | |||||
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | |||||
| ChangzhouHoushengInvestmentCo.,Ltd. | 40,000,000.00 | 40,000,000.00 | |||||
| ChangzhouChangchaiHoushengAgriculturalEquipmentCo.,Ltd. | 7,000,000.00 | 7,000,000.00 | |||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||
| JiangsuChangchaiMachineryCo.,Ltd. | 10,000,000.00 | 10,000,000.00 | |||
| Total | 241,752,730.03 | 10,000,000.00 | 251,752,730.03 | 0.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
| 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 | 1,829,511,302.64 | 1,547,250,831.33 | 1,929,864,957.32 | 1,659,272,787.45 |
| Otheroperations | 36,780,436.75 | 28,376,158.13 | 38,862,108.04 | 30,434,073.18 |
| Total | 1,866,291,739.39 | 1,575,626,989.46 | 1,968,727,065.36 | 1,689,706,860.63 |
WhethertheCompanyhasexecutedthenewrevenuestandards
□Yes√No
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 6,069,000.00 | |
| Investmentincomefromholdingofavailable-for-salefinancialassets | 7,597,950.00 | |
| Investmentincomefromdisposalofavailable-for-salefinancialassets | 104,866,770.49 |
| Incomefromtransferringtoaccommodationbusiness | 137,814.50 | |
| Total | 6,206,814.50 | 112,464,720.49 |
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gains/lossesonthedisposalofnon-currentassets | 1,914,137.47 | |
| Governmentgrantsrecognizedinthecurrentperiod,exceptforthoseacquiredintheordinarycourseofbusinessorgrantedatcertainquotasoramountsaccordingtothegovernment’sunifiedstandards | 5,312,295.51 | |
| Capitaloccupationchargesonnon-financialenterprisesthatarerecordedintocurrentgainsandlosses | 536,504.84 | |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andothercreditor’srightsinvestment,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | -49,255.00 | |
| Othernon-operatingincomeandexpensesotherthantheabove | 372,534.93 |
| Reversedportionsofimpairmentallowancesforentrustmentloanswhicharetestedindividuallyforimpairment | 4,000,000.00 | |
| Less:Incometaxeffects | 1,520,857.98 | |
| Non-controllinginterestseffects | 7,556.87 | |
| Total | 10,557,802.90 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 1.20% | 0.04 | 0.04 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 0.69% | 0.03 | 0.03 |
PartXIIIDocumentsAvailableforReference
1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment;
2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm;
3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod;and
4.TheAnnualReportdisclosedonotherstockmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompanyandtheShenzhenStockExchange.ThisAnnualReportanditsabstracthavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
TheBoardofDirectorsChangchaiCompany,Limited
11April2020