CHANGCHAICOMPANY,LIMITED
ANNUALREPORT2022
April2023
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“XIProspects”in“PartIIIManagementDiscussionandAnalysis”herein.TheBoardhasapprovedafinaldividendplanasfollows:basedonthe705,692,507shares,acashdividendofRMB0.10(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 11
PartIVCorporateGovernance ...... 46
PartVEnvironmentalandSocialResponsibility ...... 65
PartVISignificantEvents ...... 66
PartVIIShareChangesandShareholderInformation ...... 77
PartVIIIPreferredShares ...... 86
PartIXBonds ...... 87
PartXFinancialStatements ...... 88
DocumentsAvailableforReference
1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment.
2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm.
3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod.
4.TheAnnualReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompany.ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Definitions
| Term | Definition |
| “Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HorizonInvestment | ChangzhouHorizonInvestmentCo.,Ltd. |
| HorizonAgriculturalEquipment | ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| ZhenjiangSiyang | ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2022to31December2022 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | Changchai,Changchai-B | Stockcode | 000570,200570 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr. | 苏常柴 | ||
| CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
| Abbr.(ifany) | CHANGCAHICO.,LTD. | ||
| Legalrepresentative | ShiXinkun | ||
| Registeredaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
| Registeredaddressespreviouslyused | N/A | ||
| 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 | BoardSecretariatoftheCompany |
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 91320400134792410W |
| ChangetoprincipalactivityoftheCompanysincegoingpublic | Nochange |
| Everychangeofcontrollingshareholdersinceincorporation | On22November2018,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmenttransferreditsentireholdingsof170,845,236sharesintheCompany(astakeof30.43%)toChangzhouInvestmentGroupCo.,Ltd.fornocompensation,whichhasthusbecomethecontrollingshareholderoftheCompany. |
VOtherInformation
TheindependentauditfirmhiredbytheCompany:
| Name | GongzhengTianyeCertifiedPublicAccountantsLLP |
| Officeaddress | YingtongCommerceBuilding,Changzhou,Jiangsu,China |
| Accountantswritingsignatures | WangWenkai,QinZhijun |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
√Applicable□Notapplicable
| Name | Officeaddress | Representatives | Supervisionperiod |
| ChinaIndustrialSecuritiesCo.,Ltd. | 10/F,ChinaIndustrialSecuritiesPlaza,36ChangliuRoad,PudongNewDistrict,Shanghai | WangLingxiao,LiLihong | 5July2021-31December2022 |
| DonghaiSecuritiesCo.,Ltd. | 6/F,DonghaiSecuritiesPlaza,1928DongfangRoad,PudongNewDistrict,Shanghai | WangJiangqin,XuQin | 5July2021-31December2022 |
TheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
| 2022 | 2021 | 2022-over-2021change(%) | 2020 | |
| Operatingrevenue(RMB) | 2,182,043,095.61 | 2,452,430,515.60 | -11.03% | 2,296,464,711.24 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 76,684,796.91 | 103,006,232.54 | -25.55% | 52,432,443.05 |
| Netprofitattributabletothelistedcompany’s | -73,636,511.02 | 5,329,092.87 | —— | 25,483,147.57 |
| shareholdersbeforeexceptionalgainsandlosses(RMB) | ||||
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 364,930,277.84 | -266,323,779.30 | —— | 251,796,654.53 |
| Basicearningspershare(RMB/share) | 0.1087 | 0.1657 | -34.40% | 0.0934 |
| Dilutedearningspershare(RMB/share) | 0.1087 | 0.1657 | -34.40% | 0.0934 |
| Weightedaveragereturnonequity(%) | 2.51% | 3.86% | -1.35% | 2.40% |
| 31December2022 | 31December2021 | Changeof31December2022over31December2021(%) | 31December2020 | |
| Totalassets(RMB) | 5,219,359,853.42 | 4,860,382,961.26 | 7.39% | 3,952,954,464.45 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 3,284,710,665.90 | 3,077,550,018.33 | 6.73% | 2,273,349,347.02 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes√NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
√Yes□No
| Item | 2022 | 2021 | Note |
| Operatingrevenue(RMB) | 2,182,043,095.61 | 2,452,430,515.60 | ProductionandsalesoftheCompany’sprimaryproductsofdieselengines,gasolineengines,etc. |
| Deductionsfromoperatingrevenue(RMB) | 36,475,111.66 | 48,310,768.54 | Otherbusinessrevenuethanthemainoperations |
| Operatingrevenueexclusiveofdeductions(RMB) | 2,145,567,983.95 | 2,404,119,747.06 | Dieselengines,gasolineengines,andaccessories |
VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√Notapplicable
NodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 675,718,729.65 | 502,503,762.39 | 545,599,669.07 | 458,220,934.50 |
| Netprofitattributabletothelistedcompany’sshareholders | -31,087,265.83 | 16,491,996.22 | 150,405,621.57 | -59,125,555.05 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | -12,317,891.45 | 6,508,531.38 | -5,566,500.16 | -62,260,650.79 |
| Netcashgeneratedfrom/usedinoperatingactivities | -47,199,474.48 | -27,101,026.64 | -8,250,338.30 | 447,481,117.26 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√No
IXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | 2022 | 2021 | 2020 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 393,161.73 | 155,515.49 | 263,408.53 | |
| Governmentgrantsthroughprofitorloss(exclusiveofgovernmentgrantsconsistentlygivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsaspergovernmentalpoliciesorstandards) | 3,774,298.59 | 4,268,950.18 | 7,763,215.65 | |
| Capitaloccupationchargesonnon-financialenterprises | 344,842.86 |
| thatarerecognizedinprofitorloss | ||||
| Gainorlossonfair-valuechangesonheld-for-tradingfinancialassetsandliabilities&incomefromdisposalofheld-for-tradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | 162,319,373.53 | 114,738,153.54 | 27,526,935.85 | IncreaseinthefairvalueoftheCompany’sinterestinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,aswellasdecreasedpricesofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd. |
| Reversedportionsofimpairmentallowancesforreceivableswhicharetestedindividuallyforimpairment | 30,000.00 | 147,611.25 | ||
| Non-operatingincomeandexpenseotherthantheabove | 1,735,346.51 | 2,400,863.71 | -1,571,453.49 | |
| Negativegoodwillduetobusinesscombinationnotundercommoncontrol | 1,904,132.58 | |||
| Less:Incometaxeffects | 19,859,063.58 | 24,027,164.56 | 7,122,148.63 | |
| Non-controllinginterestseffects(netoftax) | -24,058.57 | 6,789.94 | 255,505.29 | |
| Total | 150,321,307.93 | 97,677,139.67 | 26,949,295.48 | -- |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysis
IIndustryOverviewfortheReportingPeriod
Weareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasharvesters,tractors,plantprotectionmachinery,smallengineeringmachinery,andshipbornemachinery.
(1)BasicinformationontheindustryTheinternalcombustionengineisanimportantsupportforChina'smanufacturingindustrysecurity,energysecurityandnationaldefensesecurity,andanimportantbasicindustryofnationaleconomyandnationaldefenseconstruction.Theinternalcombustionengineisthemostpower-dense,thermallyefficientandwidelyusedheatenginepowerunit.Inordertoimplementthenationaloveralldevelopmentstrategyofenergyconservation,emissionreduction,transformation,andupgrading,theinternalcombustionengineindustryandagriculturalmachineryindustrywillstrengthenindependentinnovationandresearchanddevelopment,acceleratetheconstructionofacommonbasictechnologyplatform,optimizetheconstructionoftheupstreamanddownstreamindustrychain,implementintelligentmanufacturing,andactivelycarryoutinternationalexchangeandcooperationtoacceleratetherealizationofindustrialtechnologyupgrading.
(2)DevelopmentpatternandtrendoftheindustryIntermsofpolicies,atthebeginningof2023,the20thNo.1Documentguidingtheworkonagriculture,ruralareas,andfarmersissuedbythecentralgovernmentdemonstratedthegovernment’sintentiontoattachgreaterimportancetoagricultureandstrengthenagriculturaldevelopment.Inabidtodoso,thegovernmentwillstepupeffortstoenhanceagriculturalscienceandtechnologyandprovidemoreequipment,drivetotacklekeyproblemsofkeyandcoretechnologiesinagriculture,andmakeagriculturalmachinerymoreintelligentandautomated.Intermsofindustryconcerns,theupgradeandconversiontoproductsthatmeettheNationalEmissionStandardIVraisechallengestoenterprises.Attheendof2022,thecentralgovernmentappropriatedRMB211.5billionofagriculture-relatedtransferpaymentfundsfor2023inadvance,includingRMB14.5billionforsubsidiesofagriculturalmachineryprocurementandapplication.Thecentralgovernmentallocatedsubstantivefundsforsubsidiesandimplementedpoliciestostrengthenagricultureandbenefitfarmers,indicatingthatthestatewillcontinuetoattachgreatimportancetoagriculturalmechanization.Intermsofindustrialdevelopment,afteraten-yeargoldenperiodofdevelopment,since2016,theentireagriculturalmachineryindustryhasenteredaperiodofdeepadjustmentthathaslastedforyears.Althoughshort-termexplosivegrowthwasseenin2020,itwentdownagain,enteringaphaseofupdatingexistingmachineryfromthegrowthofnewmachineprocurement.2022,thefirstyearofswitchingtotheNationalEmissionStandardIVforNon-roadVehicles,theagriculturalmachineryindustryfacedpressuressuchastheshrinkingofthedemandside,prematuremarketoverdraft,participationoftycoonsfromotherindustries,andtheimpactofnewenergymarketonthetraditionalmarket.Currently,multiplesegmentedscenariosstillrequireall-weatherandcontinuousinputandoutput,whichisanadvantageofdieselenginesthatcannotbesubstitutedinashorttime.Furthermore,newdevelopmentopportunitieshavebeenbroughtaboutintheprocessofnationalstrategicdeploymentandaccelerationoftransformationandupgrade.Therefore,thetraditionalmarketofagriculturalmachinerystillhasabrilliantfuture.
China'sdieselengineandgasolineengineindustriespresentapatternofmultiplecompetitions.Asthestateadoptsincreasinglystrictenvironmentalprotectionpolicyandtheemissionstandardscontinuetoupgrade,thecoretechnologyandkeypartsofinternalcombustionengineswillberapidlydevelopedandapplied,andtheresearch,development,promotingandapplicationofenvironmentallyfriendlyandefficientdieselenginesandgasolineengineswillbecomethemainstreamtrend,whichpromotesthewideuseofthefuelinjectionsystem,high-efficiencysuperchargerandhigh-efficiencyafter-treatment.Inthenewnormal,theinternalcombustionengineindustryandagriculturalmachineryindustrywillimprovetheindustry'scapabilityofindependentinnovation,supportthewholemachinedevelopment,andorganizeandimplementgreenmanufacturingandintelligentmanufacturing,soastoimprovetheoverallstrengthoftheindustry.Themarketshareofdieselandgasolineenginesisgraduallyconcentratedinafewlarge-scaleenterpriseswithtechnicalandcapitalstrength.Thepresentdevelopmenttrendofinternalcombustionengineindustryisasfollows:(1)energysavingandemissionreduction;(2)intelligentmanufacturing;(3)lightweight.Medium-andlow-endinternalcombustionengineswithlowtechnicalcontentandlowaddedvaluewillbegraduallysqueezedoutofthemarket.Theupgradeofemissionstandardsandthemarket'sdemandforhigh-endproductswilleliminatethosesmallenterpriseswithlowlevelofresearchanddevelopmentorlesstechnologyreserves.
(3)Salesofinternalcombustionengineindustryin2022Thetotalvolumeofthemarketdroppedsignificantlyduetofactorssuchassubsidypolicychange,tightsupplychain,upgradingoftheNationalEmissionStandardIVforNon-roadVehicles,andintensifiedexistingcompetition.Thetotalsalesofinternalcombustionenginesin2022were43,154,700units,adecreaseof14.51%comparedto2021.Thetotalsalesofdieselenginesfortheyearwere4,286,600units,downby29.82%yearonyear.Specifically,837,200enginesforconstructionmachinery,1,222,300enginesforagriculturalmachinery,39,700enginesforshipbornemachinery,and311,700enginesforelectricitygenerationweresold.Thesalesofgasolineinternalcombustionengineswere38,856,000,adropof12.39%yearonyear.Onthewhole,theinternalcombustionenginemarketshowedadecliningtendencyforthewholeyear,withtheconstructionandagriculturalmachinerystillshowinganadjustmenttrend.Theagriculturalmachineryindustryfacedamajorshakeout,focusingontheswitchingofproductsthatmeettheChinaIVemissionstandardsfornon-roadmobilemachinery.Accordingtotheinformationonthesubsidiesofagriculturalmachineryprocurement,themainterminalproductsthatneedtobeupgradedtomeetChinaIVemissionstandardsarelargeandmediumtractors,wheatharvesters,forageharvesters,andsprayrod-typesprayers.ThemarketpaidmoreattentiontowhethertheycanbeadequatelyverifiedtomeetChinaIVemissionstandardsandwhethermassproductioncanberealized.Inthesecondhalfof2022,thesalesoflargeandmediumtractors,wheatharvesters,andcornharvesterspeaked,showingthatthetraditionaldemandcyclewasaltered.Intermsofthesegmentsoftheinternalcombustionenginemarket,in2022,897,300unitsofconstructionmachineryweresold,downby21.00%yearonyear;4,141,300unitsofagriculturalmachineryweresold,downby22.87%yearonyear;39,700unitsofshipbornemachineryweresold,downby1.18%yearonyear;1,253,000unitsofgeneratorsetsweresold,downby19.02yearonyear;and1,645,400unitsofhorticulturalmachineryweresold,downby34.15%yearonyear.Comparedwithlastyear,theyear-over-yeargrowthofallkindsofmachinerywasnegative.Duetotheimpactofinternationaltradeandthecharacteristicsoftheenterprisescale,theinternalcombustionengineindustrywassteadyandshowedapositivetrendonthewhole.In2022,thetotalvolumeofimportsandexportswasUSD30,086million,downby2.47%yearonyear;specifically,theimportvolumewasUSD8,803million,downby18.63%yearonyearandtheexportvolumewasUSD21,284million,upby6.27%yearonyear.
IIPrincipalActivityoftheCompanyintheReportingPeriod
1.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Ourproductsaremainlyusedinagriculturalmachinery,smallengineeringmachinery,lightcommercialvehicles,generatorsetsandshipbornemachineryandotherfieldscloselyrelatedtopeople'slivelihood.IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.
2.MainProductsoftheCompanyOurmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
| Mainproducts | Graphicdisplay | Productdescription | Productfeatures | Applicationfields |
| Dieselengine | Ourdieselengineproductsincludesingle-cylinderdieselenginesandmulti-cylinderengines,coveringpowerrangefrom1.62kWto117.6kW,andcylinderdiametersfrom65mmto135mm,withoneormorecylinders.Besidessaleindomesticmarket,ourdieselenginesaresoldtoSoutheastAsia,SouthAmerica,theMiddleEastandAfrica. | Highpower,lowoilconsumption,lownoise,compactstructure,lowemission,goodreliability | Agriculturalmachinery,constructionmachinery,generatorsets,shipbornemachinery | |
| Gasolineengine | Ourgasolineenginesaremainlygeneral-purposesmallgasolineengines,coveringthepowerrangefrom1.5kWto7.0kW.Besidessaleindomesticmarket,ourgasolineenginesaresoldtoSoutheastAsia,theMiddleEast,EuropeandAmerica,Africa,Japanandothercountriesandregions. | Simplestructure,goodreliability,easymaintenance | Agriculturalmachinery,smallconstructionmachinery |
3.MajorBusinessModels
(1)R&DmodelWehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedonmarketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologycenterconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability.
(2)PurchasingmodelWeadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplandevelopedbythesalesdepartmentandtheproductionplandrawnupbytheproductiondepartmentintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchaseaccordingtosuchdemand.Meanwhile,thepurchasingdepartmentmakesaplantoguidepartsprocurementaccordingtothesales
department'ssalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.
(3)ProductionmodelWeadoptthe"make-to-order"productionmanagementmodel.Thesalesdepartmentmakessalesplansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedbackofexistingcustomers'purchasingintentions.TheCompany'sproductiondepartmentmakestheproductionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanmadebythesalesdepartmentandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality.
(4)SalemodelWeadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory,andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.
4.TheCompany'spositioninthemarketWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsofChinaInternalCombustionEngineIndustryAssociation(CICEIA),asthelargestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
5.KeyPerformanceDrivers
(1)NationalpolicydriverInrecentyears,variousdepartmentsofthestatehaveintroducedaseriesofpreferentialpoliciestoencouragethedevelopmentofinternalcombustionengineindustry.Intermsofagriculturalmachinery,thecentralgovernmenthastakensolvingtheproblemsrelatingto"agriculture,ruralareasandfarmers"asthetoppriorityoftheworkofthePartyandthegovernment,andissuedaseriesofpoliciestobenefitfarmers,creatingagoodatmosphereforpromotingthedevelopmentofagricultureandeconomyandsocietyinruralareas;intermsofconstructionmachinery,thestrategyof"westerndevelopment",the"eightverticalandeighthorizontal"high-speedrailwaynetworkplanandthepolicyof"newruralconstruction"haveallcreatedagoodpolicyenvironmentfortheapplicationofinternalcombustionengineindownstreamconstructionmachinery.
(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborativeproduction,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargainingpower.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines.
(3)StableandefficientR&DteamWehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.Ourkeytechnicalpersonnel
andR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.
(4)Well-knownbrandwithmanywell-knowncustomersTheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Ourdieselandgasolineengines,aspowersourcesofagriculturalmachinery,constructionmachineryandcommercialvehicles,showexcellentperformanceinpowerrange,reliability,powerperlitre,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnershiptimeexceeding15years.ManymainengineplantcustomersoftheCompanyarewell-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket.
IIICoreCompetitivenessAnalysis
1.AdvantagesinBrandChangchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.ItisoneoftheearliestprofessionalmanufacturersofinternalcombustionenginesinChina.Thebrand"Changchai"istheearliestdomestictrademarkofproductiongoodsknownasChina'swell-knowntrademarks.Thedieselengineof"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949qualitysystems,ISO14001environmentalmanagementsystem,IATF16949automotiveproductqualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyrankedamong“theTopOneHundredChineseEnterprisesinEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterpriseofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAwardofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2022,theCompanywasawardedhonorarytitlessuchasTop500MachineryIndustryInChina,NationalDemonstrationEnterpriseofProductandServiceQualityIntegrity,NationalQualityLeaderofInternalCombustionEngineIndustry,NationalQualityLeadingBrandofInternalCombustionEngineIndustry,ProductwithGuaranteedQualityandReputationinChina,StableQualifiedProductinNationalQualityInspection,TopTenEnterprisesofAgriculturalMachineryandEquipmentIndustryinJiangsuProvince,andThreeStarEnterpriseinChangzhou.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
2.AdvantagesinTechnologyTheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,theCompanyobtainedtheRe-assessmentCertificateoftheNationalEnterpriseTechnologyCentre,andsevenmodelsincludingEH36andZN490BwererecognizedasHigh-tech
ProductsofChangzhouCity.Inaddition,theCompanywonthehonoroftheresearchanddevelopmentbaseoftheintelligentandlightweightdieselengineoftheagriculturalmachineryandequipmentindustryinJiangsuProvince.DuringtheReportingPeriod,theCompanywasgranted23patents.Asoftheendof2022,ithasatotalof159validpatentsathomeandabroad,including13inventionpatents.
3.AdvantagesinMarketingChangchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,26salesservicecenters,and698designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.IVCoreBusinessAnalysis
1.OverviewIn2022,thedomesticandinternationalpoliticalandeconomicsituationwascomplexandvolatile.China’seconomycontinuedtofacemultiplepressuressuchasshrinkingdemand,supplyinterruptions,andweakenedexpectations.Thetotalvolumeofthemarketdroppedduetofactorssuchassubsidypolicychange,tightsupplychain,upgradingoftheNationalEmissionStandardIVforNon-roadVehicles,andintensifiedexistingcompetition.Facingthenewnormalofthecomplicatedandvolatiledevelopmentanddecliningtrendoftheagriculturalmachineryindustry,theCompanyunitedallemployeesandfurtherfocusedonproducts,market,andqualitytoseekprogresswhilemaintainingstabilityandinnovation.TheCompanysparednoefforttoadvancetheimplementationoftheannualoperationpolicyandobjectives,effectivelycombinedproductoperationandcapitalmanagement,andacceleratedproductionupgradeandindustrialchainexpansiontomaintainastableandorderlydevelopmenttendency.DuringtheReportingPeriod,theCompanysoldapproximately607,300dieselengines,gasolineenginesandgeneratorsets,includingapproximately147,000gasolineengines,generatingtotalsalesrevenueofRMB2.182billion,adecreaseof11.03%year-on-year.Intermsofproductdevelopmentandsupport,theCompanycompletedthedevelopmentandsupportcertificationformainstreammodelsofsingle-cylinderandmulti-cylinderenginesthatmettheNationalEmissionStandardIVforNon-roadVehiclesandlaunchedthemtothemarketthroughmassproduction.TheCompanyorderlyadvancedtheextensionofmulti-cylinderengines’upperandlowerpowerranges.Thehigh-powermulti-cylinderengineswerelaunchedtothemarketthroughmassproductionaftercompletingsupportverificationandtheoptimizedmulti-cylinderproductswithsmallcylinderdiametersmadebreakthroughsintermsofthesupportingfields.Inaddition,thedevelopmentofthedieseloutboardenginemadephasedprogressandpassedRCD,MEDEUcertification,andCCScertification.Intermsofmarketservices,domesticandoverseassalesmaintainedthestabilityofthefoundationandexpandednewmarkets.Thesingle-cylinderorderlycompletedtheswitchofaccessoriesthatmettheNationalEmissionStandardIVforNon-RoadEnginesofmainenginefactoriesandpromotedthesalesofproductsinthenon-agriculturefieldsbyactiveguidanceandnetworkoptimization.Intermsofmulti-cylinderengines,themarketshareofaccessoriesinthekeyfieldswasincreased.Inaddition,theforeigntrademarketmaintainedsalesgrowthincoremarketsegmentsandmadebreakthroughsintheemergingmarket.TheCompanysteppedupeffortstomanagetheappraisalsofservicesitesintheserviceprocessandfurtheroptimizedtheresourceallocationoftheservicesites.TheCompanycompletedthefunctioniterationanddevelopmentoftheremotemonitoringplatformofengines,whichwillprovideeffectivetechnicalsupportfortheCompany’sproductdesignanddevelopmentand
theafter-salesservicesofrepair,replacementandreturn.Intermsofqualitymanagement,theCompanysteppedupeffortstodevelopthequalitymanagementsystem,implementedthequalityresponsibilitysystem,strengthenedthequalitylosscontroloftheentireproductionandmanufacturingprocess,andeffectivelyreducedqualityloss.TheCompanyorganizedtoimplementthemanagementreview,internalreviewofthequalitysystem,productreview,andprocessreviewandproperlyadjustthecontentofthesystemdocumentsbasedonreality,andsuccessfullypassedtheannualexternalauditofthequalitymanagementsystem.Intermsofinternalmanagement,theCompanycontinuedtocarryoutthethree-yearactionofspecialsafetyrectificationofsafetyproduction,promotedthe“safetycode”inallrespects,madethehiddenriskscreeningandgovernanceinstitutionalizedandstandardized,andsuccessfullypassedtheISO14001environmentalsystemsupervisionandreviewduringtheyear.TheCompanyinitiatedthestandardimplementationofthemanagementsystemoftheintegrationof“informationtechnologyandindustrialization”withintheyearandsuccessfullypassedtheassessmentoftheAA-gradeintegrationof“informationtechnologyandindustrialization”managementsystem.DuringtheReportingPeriod,theCompanyadoptedmultiplemeasurestoreducecostsandincreaseefficiencytocopewiththecontinuousriseinrawmaterialpricesathomeandabroad.GreateffortsweremadetoresolutelycrackdownoninfringementsinthemarketandtheCompany’sintellectualpropertywaseffectivelysafeguardedthroughinnovativemeasures.IntheReportingPeriod,theCompanyacquired41.5%oftheequityofZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.bybidding.On16May2022,ZhenjiangSiyangconvenedageneralmeetingofshareholders,ameetingoftheBoardofDirectorsandameetingoftheSupervisoryCommitteetore-electmembersfortheBoardofDirectors,theSupervisoryCommitteeandmanagement.ZhenjiangSiyanghasbeenincludedintheconsolidatedfinancialstatementsoftheCompany.
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
| 2022 | 2021 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 2,182,043,095.61 | 100% | 2,452,430,515.60 | 100% | -11.03% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 2,145,567,983.95 | 98.33% | 2,404,119,747.06 | 98.03% | -10.75% |
| Other | 36,475,111.66 | 1.67% | 48,310,768.54 | 1.97% | -24.50% |
| Byproductcategory | |||||
| Dieselengines | 1,971,005,207.88 | 90.33% | 2,241,032,641.05 | 91.38% | -12.05% |
| Gasolineengines | 148,144,749.68 | 6.79% | 149,717,934.82 | 6.10% | -1.05% |
| Other | 62,893,138.05 | 2.88% | 61,679,939.73 | 2.52% | 1.97% |
| Byoperatingsegment | |||||
| Domestic | 1,857,845,869.48 | 85.14% | 2,038,317,678.97 | 83.11% | -8.85% |
| Overseas | 324,197,226.13 | 14.86% | 414,112,836.63 | 16.89% | -21.71% |
| Bymarketingmodel | |||||
| Distribution | 770,975,653.30 | 35.33% | 689,413,386.97 | 28.11% | 11.83% |
| Directsales | 1,411,067,442.31 | 64.67% | 1,763,017,128.63 | 71.89% | -19.96% |
(2)OperatingDivision,ProductCategory,OperatingSegmentorMarketingModelContributingover10%ofOperatingRevenueorOperatingProfit
√Applicable□Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 2,145,567,983.95 | 1,924,209,350.48 | 10.32% | -10.75% | -6.22% | -4.33% |
| Byproductcategory | ||||||
| Dieselengines | 1,971,005,207.88 | 1,795,214,080.08 | 8.92% | -12.05% | -6.77% | -5.16% |
| Gasolineengines | 148,144,749.68 | 125,625,016.85 | 15.20% | -1.05% | -2.60% | 1.35% |
| Byoperatingsegment | ||||||
| Domestic | 1,857,845,869.48 | 1,633,460,073.55 | 12.08% | -8.85% | -3.08% | -5.23% |
| Overseas | 324,197,226.13 | 315,216,962.97 | 2.77% | -21.71% | -21.69% | -0.03% |
| Bymarketingmodel | ||||||
| Distribution | 770,975,653.30 | 678,293,018.21 | 12.02% | 11.83% | 18.49% | -4.95% |
| Directsales | 1,411,067,442.31 | 1,270,384,018.31 | 9.97% | -19.96% | -16.17% | -4.07% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
| Operatingdivision | Item | Unit | 2022 | 2021 | Change(%) |
| Dieselengines | Unitsales | Unit | 458,300 | 596,279.00 | -23.14% |
| Output | Unit | 439,604 | 601,253.00 | -26.89% |
| Inventory | Unit | 64,867 | 83,563.00 | -22.37% |
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√Notapplicable
(4)ExecutionProgressofMajorSignedSalesandPurchaseContractsintheReportingPeriod
□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
| Productcategory | Item | 2022 | 2021 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| Dieselengines | Rawmaterials | 1,560,381,852.91 | 80.07% | 1,659,710,451.07 | 79.61% | -5.98% |
| Dieselengines | Laborcost | 229,434,494.85 | 11.77% | 240,110,930.78 | 11.52% | -4.45% |
| Dieselengines | Depreciation | 56,624,131.58 | 2.91% | 71,198,110.78 | 3.42% | -20.47% |
| Dieselengines | Energy | 15,340,866.19 | 0.79% | 30,044,125.27 | 1.44% | -48.94% |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
√Yes□NoTheSixthExtraordinaryMeetingoftheBoardofDirectorsin2021heldbytheCompanyon28October2021deliberatedonandapprovedtheProposalonParticipationinBiddingfor41.5%EquityInterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,authorizingtheManagementoftheCompanytoparticipateinbiddingfor41.5%equityinterestinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.(hereinafterreferredtoas"ZhenjiangSiyang")thathadbeenputoutforsalebyJiangsuKedaAssetsMarketingCo.,Ltd.(hereinafter,“KedaAssets”).On12January2022,JiangsuAssetsandEquityExchangeCo.,Ltd.issuedtheConfirmationofTransactionontheTransferof41.5%EquityInterests(CorrespondingtoCapitalContributionofRMB830,000)inZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.TheCompanywonthebidforthe41.5%equityinterestsinZhenjiangSiyangatapriceofRMB33,520,800.00.On23February2022,theCompanysignedtheContractonTransferofState-ownedPropertyRightswithKedaAssets.On9March2022,ZhenjiangSiyanghascompletedtherelevantregistrationalterationformalitieswiththecompetentindustrialandcommercialadministration.On16May2022,ZhenjiangSiyangheldmeetingsofshareholders,theBoardofDirectorsandtheSupervisoryCommitteetoelectandappointnewmembersfortheBoardofDirectors,theSupervisoryCommitteeandmanagement,withtheCompanytakingoverhalfoftheseatsintheBoardofZhenjiangSiyang.Assuch,ZhenjiangSiyanghasbeenincludedintheconsolidatedfinancialstatementsoftheCompany,bringingthenumberofconsolidatedsubsidiariestoeight.
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
(8)MajorCustomersandSuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 1,054,121,258.48 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 48.31% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | Customer1 | 550,073,305.21 | 25.21% |
| 2 | Customer2 | 207,614,866.65 | 9.51% |
| 3 | Customer3 | 174,674,496.40 | 8.01% |
| 4 | Customer4 | 66,280,122.00 | 3.04% |
| 5 | Customer5 | 55,478,468.22 | 2.54% |
| Total | -- | 1,054,121,258.48 | 48.31% |
Otherinformationaboutmajorcustomers:
□Applicable√NotapplicableMajorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 288,156,794.05 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 18.39% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | Supplier1 | 128,212,300.00 | 8.18% |
| 2 | Supplier2 | 57,147,375.28 | 3.65% |
| 3 | Supplier3 | 43,433,746.37 | 2.77% |
| 4 | Supplier4 | 35,757,706.62 | 2.28% |
| 5 | Supplier5 | 23,605,665.79 | 1.51% |
| Total | -- | 288,156,794.05 | 18.39% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable
3.Expense
Unit:RMB
| 2022 | 2021 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 102,630,223.71 | 117,242,290.32 | -12.46% | |
| Administrativeexpense | 119,511,189.72 | 98,890,284.22 | 20.85% | |
| Financecosts | -21,589,704.63 | 1,203,615.80 | —— | Increasedexchangegainsandinterestincome |
| R&Dexpenses | 81,239,597.06 | 82,390,284.14 | -1.40% |
4.R&DInvestments
√Applicable□Notapplicable
| MajorR&Dproject | Purpose | Progress | Specificobjectives | ExpectedimpactontheCompany |
| Developmentprojectofthelightweight,low-emissiondieselengineofcommonrailseries | Developingthemulti-cylinderdieselenginewithsmallcylinderdiametersthatcanmeetthesupportingrequirementsofricetransplanters,plantprotectionspraymachines,tractors,smallconstructionmachinery,andhorticulturalmachinery | Inprogress | OptimizingandupgradingbasedontheMseriesdieselengine.Increasingenginepowerbyadoptingthehigh-pressurecommonrailsystem,electroniccontroltechnicalroute,superchargerandpost-processingtechnologytomeettheNationalEmissionStandardIVforNon-RoadVehiclesandexpandmarketsupportingfields. | Aftertheimplementationoftheproject,theupgradeddieselenginewillhaveabroadandgoodmarketapplicationprospectsandwillbemorecompetitiveinthemarket. |
| ThepowerandassemblyR&Dprojectofdieseloutboardengines | Developingefficient,eco-friendly,andenergy-savingpowerandassemblyofdieseloutboardengines. | Inprogress | Makinganoptimaldesignoftheengine’sstructureandperformancetosignificantlyimproveproductindicatorssuchasreliability,fuelconsumption,andemissiontomeettheadvancedlevelofsimilarproductsabroadaswellastherequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theproductwillmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehiclesandwillhaveextensiveapplicationscenariosandbroadmarketprospects. |
| Development | Developing | In | Realizingenergysaving, | Afterthe |
| projectofthespecialdieselengineofthehighhorsepoweroutboardengines | efficient,eco-friendly,andenergy-savingoutboardengines | progress | meetingtherequirementsoftheNationalEmissionStandardIVforNon-roadVehicles,andmeetingthesupportingrequirementsofvarioustypesofsmallfisherymachinerybyapplyinghigh-performancetechnologiessuchasdieselengineenergysaving,noisereduction,environmentalprotection,materialsaving,andservicelifeextension. | implementationoftheproject,theproductwillhavesalientadvantagesintermsofpowerperformance,safety,economicefficiency,andenvironmentalprotectionandmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. |
| Developmentprojectofthespecialdieselengineofthemotorcycle | Developinglightweightsingle-cylinder,water-cooled,high-speeddieselenginestomeetthepowerrequirementsofmotor-tricycleinthemarket | Inprogress | Makingmajoroptimizationofthedieselengine’sstructureandperformancetomeettheadvancedlevelofsimilarproductsabroadaswellastherequirementsoftheNationalEmissionStandardIVforThree-wheelers. | DiversifyingtheCompany’sproducts,furtherexpandingthepowermarket,andmeetingnon-emissionregulatoryrequirementscanbringaboutnewgrowthpointsfortheCompany’sbenefits. |
| Developmentprojectof4G29dieselengine | Developingdieselenginesthathavehigherperformanceandmeettheemissionrequirements | Inprogress | Furthermakingdieselenginesmoretechnicalandloweringtheharmfulsubstanceemissionsofdieselenginestomaketheirindicatorsbetter,meetdomesticallyadvancedlevelintermsofeconomicefficiencyandpowerperformanceandmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehicles. | Aftertheimplementationoftheproject,theupgradeddieselenginewillmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehiclesanddrivetheCompany’snon-roadvehicletechnologiestobemorematureandwell-developed. |
| Developmentprojectofsingle-cylinderdieselengineswithamechanicalpumpthatcanmeettheNational | Developingsingle-cylinderdieselengineswithamechanicalpumpthathavehigherperformanceandmeettheNationalEmissionStandardIVforNon-road | Inprogress | Improvingdieselengine’spowerperformance,economicefficiencyoffuel,andotherperformanceindicators,aswellasservicelifeandmakingtheemissionindicatorsmeettheNationalEmissionStandardIVforNon-roadVehicles | Aftertheimplementationoftheproject,theproductwillmeettherequirementsoftheNationalEmissionStandardIVforNon-roadVehiclesintermsoftheemissionindicatorsandmeetthe |
| EmissionStandardIVforNon-roadVehicles | Vehicles | supportingrequirementsofmachinery,bringingaboutnewgrowthpointsfortheCompany’sbenefits. | ||
| DevelopmentofV402dieselengine | Developingahigher-performancelightmulti-cylinderdieselenginethatmeetstheemissionrequirements | Inprogress | Conductingstructuraloptimizationofdieselenginecomponentstoimproveproductperformanceandreliability. | Aftertheimplementationoftheproject,theproductwillmeettherequirementsofnon-roadChinaIVvehicleemissionregulations,thesupportingrequirementsofmachinery,andmarketdemand. |
| DevelopmentofD15dieseloutboardengine | Developingmoreefficient,environmentallyfriendlyandenergy-savingdiesel-poweredproducts | Inprogress | Conductingmajordesignoptimizationoftheenginestructureandperformancetoimprovethereliability,fuelconsumption,emissionsandotherindicatorsoftheproduct,soastoreachtheadvancedlevelofsimilarforeignproducts. | Aftertheimplementationoftheproject,theproductwillmeettherequirementsofnon-roadChinaIVvehicleemissionregulationsandopenupthemarketofshipmachinery. |
| Developmentofdiesel-electrichybridproducts | Developingefficientandenvironmentallyfriendlydiesel-poweredproducts | Inprogress | Improvingtheemissioncharacteristicsandeconomiccharacteristicsofdiesel-electrichybriddieselenginestoenhancetheenergyefficiency,enduranceandreliability. | Aftertheimplementationoftheproject,theproductmeetsthemarketdemandandmakesthegoodsqualityandlogisticsefficiencyofthecoldchaintimely,safeandefficient,providingawhole-proceduretemperatureandqualitymanagementsolution. |
DetailsaboutR&Dpersonnel:
| 2022 | 2021 | Change(%) | |
| NumberofR&Dpersonnel | 236 | 264 | -10.61% |
| R&Dpersonnelas%of | 8.89% | 9.55% | -0.66% |
| totalemployees | |||
| EducationalbackgroundofR&Dpersonnel | |||
| Bachelor’sdegree | 101 | 117 | -13.68% |
| Master’sdegree | 7 | 13 | -46.15% |
| AgestructureofR&Dpersonnel | |||
| Below30 | 25 | 34 | -26.47% |
| 30~40 | 84 | 95 | -11.59% |
DetailsaboutR&Dinvestments:
| 2022 | 2021 | Change(%) | |
| R&Dinvestments(RMB) | 81,239,597.06 | 82,390,284.14 | -1.40% |
| R&Dinvestmentsas%ofoperatingrevenue | 3.72% | 3.36% | 0.36% |
| CapitalizedR&Dinvestments(RMB) | 0.00 | 0.00 | —— |
| CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 0.00% | 0.00% | —— |
ReasonsforanysignificantchangeinthecompositionofR&Dpersonnelandtheimpact:
□Applicable√NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonsforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
| Item | 2022 | 2021 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 2,150,597,784.38 | 1,878,728,640.47 | 14.47% |
| Subtotalofcashusedinoperatingactivities | 1,785,667,506.54 | 2,145,052,419.77 | -16.75% |
| Netcashgeneratedfrom/usedinoperatingactivities | 364,930,277.84 | -266,323,779.30 | —— |
| Subtotalofcashgeneratedfrominvestingactivities | 944,067,348.19 | 385,166,151.68 | 145.11% |
| Subtotalofcashusedininvestingactivities | 1,082,020,854.62 | 850,680,343.34 | 27.19% |
| Netcashgeneratedfrom/usedininvestingactivities | -137,953,506.43 | -465,514,191.66 | —— |
| Subtotalofcashgeneratedfromfinancingactivities | 135,437,700.65 | 711,844,747.79 | -80.97% |
| Subtotalofcashusedinfinancingactivities | 114,312,925.54 | 45,328,892.65 | 152.19% |
| Netcashgeneratedfrom/usedinfinancingactivities | 21,124,775.11 | 666,515,855.14 | -96.83% |
| Netincreaseincashandcash | 247,948,744.46 | -67,537,318.91 | —— |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable?NotapplicableThesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedinoperatingactivitieswasprimarilybecausetheCompanystrengthenedthecollectionofpaymentsbycustomers,destockedduetotherisingemissionstandards(resultingindecreasedprocurementexpenditure),anddiscountedcertainbankacceptancenotesfromcustomerswithhighcreditlevelsforcashmanagementpurposesinpursuitofhigherincomeintheReportingPeriod.Thesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedininvestingactivitieswasprimarilyduetotheCompany’sacquisitionofa41.5%interestinZhenjiangSiyang,acapitalincreasetoJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,andtheproperuseofidlefundsforcashmanagementpurposes,intheReportingPeriod.Thesignificantyear-on-yearchangeinnetcashgeneratedfrom/usedinfinancingactivitieswasprimarilybecausetheCompanyraisedagrossamountofRMB634,999,936.40(netproceeds:RMB620,665,733.97)inaprivateplacementof144,318,181sharesoftheRMB-denominatedordinarystock(A-stock)lastyear,whiletherewerenosuchfinancingactivitiesduringtheReportingPeriod.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod
√Applicable?NotapplicableThebigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriodwasmainlybecauseoftheimpactonthecurrentincomeofthefairvaluechangesofthefinancialassetsheldbytheCompany,andthediscountingofcertainbankacceptancenoteswithhighcreditlevels.VAnalysisofNon-CoreBusinesses
√Applicable?Notapplicable
Unit:RMB
equivalents
Amount
| Amount | As%ofgrossprofit | Source | Recurrentornot | |
| Returnoninvestment | 7,969,467.19 | 9.75% | Stockdividendsandincomefromcashmanagement | Yes |
| Gains/lossesonchangesinfairvalue | 145,243,457.17 | 177.75% | increasedfairvalueoftheCompany’sinterestinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,aswellasthedecreasedpricesofthesharesheldbywholly-ownedsubsidiaryHorizonInvestmentinJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd. | No |
| Assetimpairmentloss | -14,367,197.27 | -17.58% | Inventoryvaluationloss | No |
| Non-operatingincome | 4,257,942.65 | 5.21% | Negativegoodwillandamountsthatrequirenopaymentduetobusinesscombinationnotundercommoncontrol | No |
| Non-operatingexpense | 618,463.56 | 0.76% | Lossonretirementofnon-currentassets | No |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 31December2022 | 1January2022 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 930,013,350.97 | 17.82% | 707,966,678.74 | 14.57% | 3.25% | Thestrengthenedcollectionofpaymentsbycustomers,andthediscountingofcertainbankacceptancenotesfromcustomersintheReportingPeriod. |
| Accountsreceivable | 370,322,179.77 | 7.10% | 375,209,126.48 | 7.72% | -0.62% | |
| Inventories | 571,996,881.74 | 10.96% | 651,083,758.18 | 13.40% | -2.44% | |
| Investmentproperty | 42,160,779.65 | 0.81% | 44,597,255.21 | 0.92% | -0.11% | |
| Fixedassets | 720,061,387.76 | 13.80% | 402,915,521.65 | 8.29% | 5.51% | Majority-ownedsubsidiaryChangchaiMachinery’slightweightengineandcastingrelocationprojectwastransferredfromconstructioninprogresstofixedassetsintheReportingPeriod. |
| Constructioninprogress | 30,281,547.56 | 0.58% | 270,305,690.91 | 5.56% | -4.98% | Majority-ownedsubsidiaryChangchaiMachinery’slightweightengineandcastingrelocationprojectwastransferredfromconstructioninprogresstofixedassetsintheReportingPeriod. |
| Short-termborrowings | 115,437,700.65 | 2.21% | 73,971,466.65 | 1.52% | 0.69% | CertainbankacceptancenoteswithlowcreditlevelswerediscountedintheReportingPeriod,whichwereundueattheperiod-end. |
| Contractliabilities | 32,843,692.83 | 0.63% | 26,864,081.97 | 0.55% | 0.08% | |
Indicatewhetheroverseasassetstakeupahighpercentageintotalassets.
□Applicable√Notapplicable
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(derivativefinancialassetsexclusive) | 404,053,261.57 | -42,836,741.19 | 969,060,767.00 | 960,173,684.81 | 370,103,602.57 | |||
| 4.Investmentinotherequityinstruments | 779,877,646.53 | 770,990,240.08 | 955,560,240.08 | |||||
| Subtotaloffinancialassets | 1,183,930,908.10 | -42,836,741.19 | 770,990,240.08 | 969,060,767.00 | 960,173,684.81 | 1,325,663,842.65 | ||
| Other | 150,398,226.39 | 187,411,361.54 | 75,000,000.00 | 412,809,587.93 | ||||
| Totalofabove | 1,334,329,134.49 | 144,574,620.35 | 770,990,240.08 | 1,044,060,767.00 | 960,173,684.81 | 1,738,473,430.58 | ||
| Financialliabilities | 0.00 | 0.00 | ||||||
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
| Item | Endingcarryingvalue | Reasons |
| Monetaryassets | 95,662,384.92 | Securitydepositsassociatedwithbankacceptancenotes,environment,etc. |
| Buildings | 1,530,890.90 | Collateralforbankloan |
| Landuseright | 879,275.35 | Collateralforbankloan |
| Plantandequipment | 31,222,420.22 | Collateralforbankloan |
| Paymentobligationsinrelationtodiscountednotesthatwereundue | 110,000,000.00 | |
| Paymentobligationsinrelationtotransferrednotesthatwereundue | 66,395,231.83 | |
| Total | 305,690,203.22 |
VIIInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| InvestmentsmadeinReportingPeriod(RMB) | Investmentsmadeinsameperiodoflastyear(RMB) | +/-% |
| 108,520,800.00 | 160,000,000.00 | -32.17% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
√Applicable□Notapplicable
Unit:RMB
| Investee | Mainbusiness | Investmentmethod | Investmentamount | Shareholdingpercentage | Capitalresources | Partner | Investmentterm | Typeofproducts | Progressasofthebalancesheetdate | Estimatedincome | ProfitsorlossesofinvestmentintheReportingPeriod | Involvinginlawsuitornot | Disclosuredate(ifany) | Disclosureindex(ifany) |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | Manufacturingandmarketingofdieselenginesetsforships | Acquisition | 33,520,800.00 | 41.50% | Self-funded | None | Long-term | Manufacturingandmarketingofdieselenginesetsforships | Transactioncompletedwiththerelevantequityintereststransferred | 0.00 | 1,904,132.58 | Not | 29October2021 | 2021-068 |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | Lithiumdiaphragm | Capitalincrease | 75,000,000.00 | 5.36% | Self-funded | None | Long-term | Lithiumdiaphragm | Ownershipchangeregisteredwiththeindustrialandcommercialadministration | 0.00 | 186,000,000.00 | Not | 27August2022 | 2022-049 |
| Total | -- | -- | 108,520,800.00 | -- | -- | -- | -- | -- | -- | 0.00 | 187,904,132.58 | -- | -- | -- |
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
| Varietyof | Codeof | Nameof | Initial | Accounting | Beginning | Gain/losson | Accumulated | Purchasedin | Soldinthe | Gain/lossin | Endingcarry | Accountin | Funding |
| security | security | security | investmentcost | measurementmethod | carryingamount | fairvaluechangesintheReportingPeriod | fairvaluechangesrecordedinequity | theReportingPeriod | ReportingPeriod | theReportingPeriod | ingamount | gtitle | source |
| Domestic/foreignstock | 600166 | FotonMotor | 41,784,000.00 | Fairvaluemethod | 497,080,000.00 | 0.00 | 364,261,000.00 | 0.00 | 0.00 | 0.00 | 406,045,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 136,422,000.00 | 0.00 | 127,800,000.00 | 0.00 | 0.00 | 0.00 | 170,586,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 24,136,339.00 | -10,543,928.00 | 0.00 | 0.00 | 0.00 | -10,543,928.00 | 13,592,411.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 87,840,000.00 | -27,777,600.00 | 0.00 | 0.00 | 0.00 | -27,777,600.00 | 60,062,400.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 289,000.00 | -42,000.00 | 0.00 | 0.00 | 0.00 | -42,000.00 | 247,000.00 | Held-for-tradingfinancialassets | Self-funded |
| Dom | 8328 | Stars | 3,600 | Fair | 9,675 | -4,83 | 0.00 | 0.00 | 0.00 | -4,83 | 4,83 | Held | Self- |
| estic/foreignstock | 85 | ScienceandTechnology | ,000.00 | valuemethod | ,000.00 | 7,500.00 | 7,500.00 | 7,500.00 | -for-tradingfinancialassets | funded | |||
| Total | 115,532,012.76 | -- | 755,442,339.00 | -43,201,028.00 | 492,061,000.00 | 0.00 | 0.00 | -43,201,028.00 | 655,370,311.00 | -- | -- | ||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofRaisedFunds
√Applicable□Notapplicable
(1)OverallUseofRaisedFunds
√Applicable□Notapplicable
Unit:RMB’0,000
| Yearforfund-raising | Methodoffund-raising | Totalraisedfunds | Totalraisedfundsthathavebeenusedinthecurrentperiod | Totalraisedfundsthathavebeenusedaccumulatively | TotalraisedfundswithalteredpurposesduringtheReportingPeriod | Totalaccumulativeraisedfundswithalteredpurposes | Proportionoftotalaccumulativeraisedfundswithalteredpurposes | Totalraisedfundsthathavenotbeenusedyet | Useandownershipchangeofunusedraisedfunds | Raisedfundsthathavebeenleftunusedforovertwoyears |
| 2021 | Non-publicoffering | 63,500.00 | 8,944.45 | 34,682.81 | 0.00 | 0.00 | 0.00% | 28,817.19 | Specialaccountfordepositingraisedfunds | 0.00 |
| Total | -- | 63,500.00 | 8,944.45 | 34,682.81 | 0.00 | 0.00 | 0.00% | 28,817.19 | -- | 0.00 |
| Explanationoftheoveralluseofraisedfunds |
| On17December2020,theCompanyreceivedtheReplyConcerningtheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)fromtheChinaSecuritiesRegulatoryCommission,whichapprovedthenon-publicofferingofupto168,412,297sharesoftheCompany.OnJune11,2021,thesubscribersofthisnon-publicofferinghavefullyremittedthesubscriptionfundstothebankaccountdesignatedbythesponsorinstitution,andthetotalamountoffundsraisedwasRMB634,999,996.40.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B061)wasissued.Withtheissuanceexpensesdeducted,theactualnetfundsraisedwereRMB620,665,733.97.OnJune15,2021,theaforementionedraisedfundswereremittedtothespecialaccountsetupbytheCompanyforraisedfundsfromthenon-publicofferingofshares.AfterthecapitalverificationbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),theCapitalVerificationReportoftheFundsRaisedbytheNon-publicIssuanceofChangchaiCo.,Ltd.(S.G.W[2021]B062)wasissued.Theraisedfundshaveallbeendepositedinthespecialaccountfortheraisedfundsandatripartitesupervisionagreementhasbeensignedwiththesponsorinstitutionandtheaccountopeningbankforthefundsraised.ThereisnomaterialdifferencebetweenthetripartitesupervisionagreementandthemodeltripartitesupervisionagreementofShenzhenStockExchange,andtheCompanystrictlycomplieswithitwhenusingtheraisedfunds.Asof31December2022,RMB346.8281millionofraisedfundshasbeenusedcumulatively,withtheunusedraisedfundsbeingRMB288.1719million. |
(2)CommittedProjectsofRaisedFunds
√Applicable□Notapplicable
Unit:RMB’0,000
| Committedinvestmentprojectsandinvestmentofexcessiveraisedfunds | Whetherprojectshavebeenaltered(includingpartialalternation) | Totalcommittedinvestmentwithraisedfunds | Adjustedtotalinvestmentamount(1) | TheinvestmentamountduringtheReportingPeriod | AccumulativeinvestmentamountasoftheendoftheReportingPeriod(2) | InvestmentprogressasoftheendoftheReportingPeriod(3)=(2)/(1) | Datewhentheprojectsarereadyfortheirintendeduse | BenefitsrecordedduringtheReportingPeriod | Whethertheestimatedbenefitsarereached | Whethertherearematerialchangesintheprojectfeasibility |
| Committedinvestmentprojects | ||||||||||
| Relocationprojectoflightenginesandcasting | No | 54,766.71 | 54,766.71 | 8,311.17 | 32,418.32 | 59.19% | 31May2022 | -1,639.88 | No | No |
| Innovationcapacitybuildingprojectofthetechnicalcenter | No | 8,733.29 | 7,299.86 | 633.28 | 759.21 | 10.40% | 31December2023 | Notapplicable | Notapplicable | No |
| Subtotalof | -- | 63,50 | 62,06 | 8,944. | 33,17 | -- | -- | -1,639.88 | -- | -- |
| committedinvestmentprojects | 0.00 | 6.57 | 45 | 7.53 | ||||||
| Investmentofexcessiveraisedfunds | ||||||||||
| Notapplicable | ||||||||||
| Total | -- | 63,500.00 | 62,066.57 | 8,944.45 | 33,177.53 | -- | -- | -1,639.88 | -- | -- |
| Casesandreasonsforfailingtoreachtheplannedprogressorpredictedreturn(byspecificprojects) | ThereasonsforthefailuretorealizethebenefitsoftherelocationprojectoflightenginesandcastingduringtheReportingPeriod:TheprojectmetthehopedconditionforuseinMay2022.However,duetomarketfactors,theproductionlinefailedtoachievetheexpectedproductionvolume.Thesalesrevenueoftheproductswasinadequatetocoverthecostsofthedepreciationofnewfixedassetsandadministrativeexpenses.Asaresult,theprojectfailedtoachievetheanticipatedbenefitasof31December2022.Thereasonsfortheslowpaymentprogressoftherelocationprojectoflightenginesandcasting:Asof31December2022,theprojectdidnotcompletethefinalaccountauditandfinalacceptanceinspectionofequipment,compromisingthepaymentprogress.Asof31March2023,thepaymentamountreachedRMB476.1310million,accountingfor86.94%ofthetotalamount.Theunpaidfundsmainlyrefertothesupportingworkingcapitalandthebalanceoftheremainingunacceptedequipment.Thereasonsfortheslowpaymentprogressoftheinnovationcapacityconstructionofthetechnologycentre:Asof31December2022,halfoftheconstructionperiodoftheinnovationcapacityconstructionofthetechnologycentrewaspassedandsomeR&Dobjectiveswereachieved.However,thepaymentprogressoftheprojectwasslowforthefollowingspecificreasons:1.Fromthebeginningoftheprojectinitiation,theCompanyadheredtotheprinciplesofsavingcapitalandincreasingtheassetutilisationrate.ItutilisedexistingequipmenttocompletesomeoftheR&Dprocesses,savingsomeexpensesofequipment.2.Thebalanceofsomesignedcontractswasnotpaid.2.Thebalanceofsomesignedcontractswasnotpaid. | |||||||||
| Explanationsofthematerialchangesintheprojectfeasibility | Notapplicable | |||||||||
| Amount,use,anduseprogressofexcessiveraisedfunds | Notapplicable | |||||||||
| Implementationoflocationchangesintheinvestmentprojectswiththeraisedfunds | Applicable | |||||||||
| OccurredduringtheReportingPeriod | ||||||||||
| TheProposalonAddingImplementationLocationtothePrivatePlacementRaisedFundsInvestmentProjectofInnovationCapacityBuildingoftheTechnicalCentrewasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.TheCompanydecidedtoaddthesitesofcertainbranchesoftheCompanyastheparentandwholly-ownedsubsidiaryChangchaiMachineryaslocationstoplacetheR&Dequipmentand | ||||||||||
| implementtheR&Dproject.Thischangewillnotre-purposetheraisedfundsandwillhelpcarryforwardthetechnicalinnovationproject. | |
| Implementationofmethodadjustmentstotheinvestmentprojectswiththeraisedfunds | Notapplicable |
| Earlyinvestmentandplacementconcerningtheinvestmentprojectswiththeraisedfunds | Applicable |
| Priortotheavailabilityoftheraisedfunds,inordertoensurethesmoothimplementationoftheinvestmentprojectswithraisedfunds,theCompanyuseditsownfundstoinvestinpartoftheinvestmentprojectswithraisedfundsandpaidpartoftheissuanceexpenses.Asof17June2021,thecumulativeamountoftheCompany'sself-financingfundspre-investedintheinvestmentprojectswithraisedfundswasRMB181,803,327.94,theamountofissuanceexpensesadvancedwasRMB2,358,490.56,totalingRMB184,161,818.50,andtheproposedreplacementamountwasRMB184,161,818.50.ThecapitalswereverifiedbytheGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),andtheVerificationReportonthePre-investmentofSelf-financingFundsintotheInvestmentProjectwithRaisedFundsandthePaymentofIssuanceExpensesbySelf-financingFundsofChangchaiCo.,Ltd.(S.G.W[2021]E1347)wasissuedon25June2021.On28June2021,theThirdInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonReplacingtheFundsPre-investedintheProjectandAdvancedIssuanceExpenseswiththeRaisedFunds,agreeingtousetheraisedfundsfromthenon-publicofferingofsharestoreplacetheself-financingfundstotalingRMB184,161,818.50thathadbeenpre-investedintheprojectpriortotheavailabilityoftheraisedfunds.Inaddition,XingyeSecuritiesCo.,Ltd.andDonghaiSecuritiesCo.,Ltd.issuedaverificationopinionontheuseofraisedfundstoreplaceself-financingfundsthathadbeeninvestedinadvanceintheprojectswithraisedfunds.Fordetails,seetheAnnouncementontheUseofRaisedFundstoReplacePre-investedProjectFundsandAdvancedIssueExpenses(AnnouncementNo.2021-036)publishedonCninfo(http://www.cninfo.com.cn)on30June2021. | |
| Temporaryreplenishmentofworkingcapitalwiththeidleraisedfunds | Notapplicable |
| Surplusraisedfundsforprojectimplementationandreasonsforthesurplus | Notapplicable |
| Useandownershipchangeofunusedraised | Somearedepositedinthespecialaccountforraisedfundsandsometemporarilyidleraisedfundsareusedtopurchasewealthmanagementproducts |
| funds | |
| Problemsintheuseofraisedfundsanddisclosure,orothercases | On13July2021,theFourthInterimMeetingoftheBoardofDirectorsoftheCompanyin2021deliberatedandapprovedtheProposalonChangingtheImplementationEntityofSomeInvestmentProjectswithRaisedFunds,agreeingtochangetheimplementationentityoftheCompany'sinvestmentprojectswithfundsraisedthroughnon-publicofferingofshares,the"relocationprojectoflightenginesandcasting",fromChangchaiMachinery,awholly-ownedsubsidiaryoftheCompany,totheparentcompanyofChangchaiCo.,Ltd.Thematterdidnotchangetheuseandimplementationofthefundsraisedandwasnotasignificantchangeintheinvestmentprojectswithraisedfunds.TheProposalonAddingImplementationEntitytothePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEnginesandCastingwasapprovedatthe13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteeoftheCompanyon22August2022.Assuch,theCompanyhasaddedChangchaiMachineryasanotheroperatingentitywiththeCompanyastheparenttojointoperatetherelocationprojectforbetteroperationalflexibilityandstrongermarketcompetitiveness. |
(3)AlteredProjectsofRaisedFunds
□Applicable√NotapplicableVIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√NotapplicableIXMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| Changcha | Subsidiar | Productio | 55,063,000.00 | 155,037,7 | 80,050,38 | 190,631,8 | -9,633,75 | -8,323,25 |
| iBenniu | y | nofdieselengineaccessories | 13.45 | 1.90 | 59.08 | 8.49 | 6.01 | |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 70,361,727.25 | 49,264,108.12 | 34,281,252.72 | -658,955.59 | -652,107.80 |
| HorizonInvestment | Subsidiary | Externalinvestmentandconsulting | 40,000,000.00 | 94,446,635.52 | 80,931,101.39 | 0.00 | -40,971,243.24 | -30,437,809.17 |
| HorizonAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 9,071,468.38 | -15,054,466.60 | 3,513,853.60 | -4,209,358.80 | -4,209,358.80 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 107,556,955.89 | 86,383,808.82 | 148,144,749.68 | 12,403,784.38 | 11,452,347.12 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 300,000,000.00 | 577,467,039.02 | 277,452,220.47 | 27,200,812.94 | -23,984,344.72 | -18,691,434.92 |
| XingshengRealEstateManagement | Subsidiary | Realestatemanagementservice | 1,000,000.00 | 2,614,116.80 | 559,218.04 | 4,640,127.66 | 197,076.51 | 141,777.64 |
| ZhenjiangSiyang | Subsidiary | Manufacturingandmarketingofdieselenginesforships | 2,000,000.00 | 108,595,310.06 | 88,360,053.89 | 35,440,983.37 | 4,616,942.04 | 4,885,811.05 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
√Applicable□Notapplicable
| Companyname | HowthesubsidiarywasobtainedordisposedofintheReportingPeriod | ImpactontheCompany’soperationsandoperatingresults |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | TheCompanywonthebidofRMB33.5208millionofownfundsforthe41.5%equityinterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,whichwasputoutforsalebyJiangsuKedaAssetsMarketingCo.,Ltd. | ThistransactionwillhelptheCompanyexpanditsproductchain,completeitsbusinessportfolioandpromotelong-termdevelopment. |
Otherinformationaboutprincipalsubsidiariesandjointstockcompanies:N/A
XStructuredBodiesControlledbytheCompany
□Applicable√Notapplicable
XIProspects
1.DevelopmentstrategyoftheCompanyTheCompany’sdevelopmentstrategyistobaseonfarmmachinery,becomestrongerintheenginebusiness,exploremoremarketsanddevelopinascientificway.Thestate’sexistingpoliciesandnewpoliciesoncomprehensivelypromotingruralrevitalizationandacceleratingtobuildChinaintoanagriculturalpowerwillbringaboutsignificantandpositiveimpactsfortheindustry.TheCompanywillmakefulluseofthepolicy-baseddividendofstrongnationalsupportforagriculturalproductionanddevelopmentofagriculturalmachineryandcontinuetopromoteinnovativedevelopment,talentrecruitment,qualityimprovement,brandbuilding,andcapitalboosttoacceleratethetechnologicalupgradeoftraditionalpowerproducts,expandnewmarketsinnewfields,andalsotoachievediversifieddevelopmentoftheindustry.TheCompany’smaindevelopmentdirectionsareasfollows:
(1)AcceleratingtechnologicalupgradingandareaexpansionfortraditionalproductsFirst,theCompanywillcontinuetopromotethemassproductionofthefullrangeofmodelsthatmeettheNationalEmissionStandardIVforNon-roadVehicles.ItwillfurtheroptimizetheproductsthatmeettheNationalEmissionStandardIVforNon-roadVehiclesanddevelopitscapabilityofproduction,manufacturing,andafter-salesservicetoensurethattheproducts’powerperformance,economicefficiency,andreliabilitycanmeetmarketdemands.Second,traditionalproductswillbedevelopedinthedirectionofintelligentandnetworkedhigh-endproducts.Basedontheelectronic,networkedandintelligentcharacteristicsofthedevelopmentofagriculturalmachineryproducts,theCompanywillpromotetheapplicationofadvancedtechnologiessuchastheInternet,bigdata,artificialintelligenceandnewmaterialstoproductdevelopment,furtherimprovethedieselengines’functionsofintelligentcontrol,real-timemonitoringandbigdatacollectionandanalysis,acceleratetheR&Dofintelligentterminalsandhybridpower,promotetheproductstodeveloptowardsthehighend,strengthentheexistingadvantageousproducts,andraisetheaddedvalueofproductstobettermeetuserdemands.Third,traditionalproductswillbedevelopedintheterminaldirection.Thedieselengineisanintermediateproductandacoreproducttodevelopintheterminaldirection.Atpresent,theCompany’smainproductsaresmallandmedium-powerdieselenginesandgeneralgasolineengines,themarketofsupportingfacilitiesismainlydistributedinagriculturalmachinery,plantprotectionmachinery,constructionmachinery,shipbornemachinery,andothernon-roadareas.TheCompanyisnowfocusingonterminalfieldssuchasgeneratingsets,outboardengines,coldchains,fishingboats,andirontowers,withabroadprospect.Currently,theCompanyhassuccessfullyacquired41.5%oftheequityofZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,(“ZhenjiangSiyang”)becomingthelargestshareholderandgainingcontrol.ZhenjiangSiyangmainlyengagesinthedieselengineunitsoflifeboatsandrescueboats,whichisatop1brandofthemainengineoflifeboatsinthe
world.Meanwhile,theoutboardengineprojecthasmadephasedprogress,withthesmall-poweroutboardenginesgraduallycompletingmarketverification.Inaddition,adomesticandoverseasmarketsalessystemhasbeenbuilt,whichisconducivetoexpandingtheproductchainandimprovingthebusinessstructure.TheCompanywillmakefulluseofthecapitalplatformofthelistedcompanytocutinattherighttimethroughjointventurecooperation,mergersandacquisitions,restructuring,etc.,toacceleratetheextensionoftheindustrialchainandbuildnewcompetitiveadvantages.
(2)PromotingindustrialtransformationanddevelopmentinthedirectionofcombinationwithnewenergyTheirreversibledevelopmentofnewenergyhasimpactedinternalcombustionengineproducts,buttheopportunityexistsforalongtime.Whiletappingtheadvantagesoftraditionalindustries,internalcombustionenginesshoulddevelopwiththedevelopmentofnewenergyaswell.Atpresent,theCompanyhasinvestedinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.throughequityparticipation,mainlyengagingintheproductsoftheprojectofwet-processseparatorfilmforlithiumbatteries,withagooddevelopmentmomentum.Inthefuture,theCompanywillseizethedevelopmentopportunitiesofthe“carbonpeakingandcarbonneutrality”strategyraisedbythestate,continuetoincreaseitseffortstoexplorenewenergyareassuchaslithiumbatteryandhydrogenfuel,promotecooperationandpenetrationofrelatedgreenindustry,anddriveittoexpandtonewfields.
2.OperationplanfortheYear2023:
TheCompanywillconsolidatethetraditionalmarketofagriculturalmachinery,exploretheemergingareaofpower,raisequalitytocreatefineproductswithcoretechnologies,highlightefficiencybyintegratingresources,stimulatevitalitybydeepeningreform,andleveragecapitaltopromotedevelopment.In2023,salesrevenueisexpectedtobeRMB2.2billion,withrevenueofUSD52millionthroughexport.TheaboveoperationplandoesnotrepresenttheprofitforecastofY2023bythelistedcompany,andwhethercanberealizeddependsonvariousfactorsonthechangesofmarketconditionsandtheeffortlevelofthemanagementteam.Thereisalotofuncertainty,andinvestorsshouldpayspecialattentiononit.
3.PossiblefuturerisksandcountermeasuresoftheCompany
(1)Marketrisk:
Thetotalvolumeofthemarketwilldropduetofactorssuchassubsidypolicychange,tightsupplychain,upgradingoftheNationalEmissionStandardIVforNon-roadVehicles,andintensifiedexistingcompetition.Inrecentyears,theagriculturalmachineryindustryhasstillbeeninaperiodofdeepadjustment.Thedieselenginemarketfaceslimitedtotaldemand,thedeliverycapacityandenvironmentofproductsneedtobeimproved,andtheloweruserrevenuecompromisestheincreaseinthedemandside.Countermeasures:First,theCompanysolidifiesthetraditionalsupportingfields,furtherexpandstheCompany’sadvantagesinthefieldofagriculturalmachinery,andcontinuestopromotethemassproductionofthefullrangeofmodelsthatmeettheNationalEmissionStandardIVforNon-roadVehiclestoensurethecontinuoussupplylevelofsupplychainsandmeetmarketdemands.Second,theCompanyexpandsapplicationsinshipbornegeneratorsets,high-speedricetransplanters,coldchainvehicles,excavatorsandothersmallconstructionmachinery,conductsin-depthresearchanddevelopmentinnewareasanddevelopmentandsupportingofkeyproducts.Third,theCompanycreatesthe“internalcombustionengine+”mode,activelypromotestheapplicationofadvancedtechnologiessuchastheInternet,bigdata,artificialintelligenceandnewmaterialstoproductdevelopment,furtherimprovesthedieselengines’functionsofintelligentcontrol,real-timemonitoringandbigdatacollectionandanalysis,acceleratestheR&Dofintelligentterminalsandhybridpower,promotestheproductstodeveloptowardsthehighend,andbuildsnewcompetitiveedges.
(2)IndustrialriskInrecentyears,thestateadvocatesenergyconservationandemissionreduction.Newenergypowerrepresentedbypureelectric,hybridpowerandhydrogenfuelpowerhasgrabbedthemarketshareofdieselenginetoacertain
extent.Atpresent,newenergypowerismainlyusedinvehicles.Itsuseinagriculturalmachineryisstillfacingproblemssuchashighcostandcomplexoperatingenvironment.However,asbreakthroughshavebeenmadeinnewenergybatterytechnology,thelocalapplicationscenarioofdieselenginemaybereplacedbynewenergypower.Countermeasures:TheCompanystrengthensexplorationinthenewenergysector,andactivelypromotesprojectconstructionanddevelopment.Meanwhile,theCompanymakespropereffortsinproductR&D,developsefficientandeco-friendlyproducts,andexpandsnewdevelopmentdirectionsandapplicationareas.
(3)ForeigntraderiskInthecontextofthecomplexandchangeableglobaleconomicenvironmentandtheturmoilinthebreadbasketofEuropecausedbytheRussia-Ukraineconflict,thepricesofimportedagriculturalproducts,fertilizer,feed,oil,andgasincrease,whichdirectlycompromisetheplantingcostsandpurchasingpoweroffarmers.Theunstablefactorshavebroughtaboutcertainimpactsonproductexport.Countermeasures:TheCompanywillactivelydealwiththeforeigntrademarketchanges,strengthenthemaintenanceandmanagementofoverseaskeymarketsandcustomers,intensifyeffortsinthedevelopmentofemergingmarketsandnewusers,andendeavortoimprovethesalesofhigh-value-addedproducts.
(4)ForeignexchangeriskSomeoftheCompany’sexportsaresettledinUSD.Inthefuture,duetothesignificantexchangeratefluctuationofRMBagainstUSD,theCompanymayfacetheriskofadverseimpactonproductsalesduetoexchangeratefluctuation.Countermeasures:First,theCompanywillenhanceriskcontroltoensureitscapitalsecurity,constantlypayattentiontothedepreciationofcurrenciesandshortageofUSDinthemarket,andlowerriskbychangingpaymentmethodschangeandinsuringexportcreditinsurance.Second,theCompanywillpromptlyadjustproductpricesandpaymenttermstocopewithfluctuationsinexchangeratesandmaterialprices.
(5)Talentrisk:
TheCompanyneedshigh-leveltalents,highlyskilledtalentsandlackstalentstohelptheCompanyimproveitsoperationalefficiencyandstrengthentechnologicalinnovationtocopewiththeincreasinglyfiercemarketcompetitionandindustrydevelopmenttrend.Therefore,thedemandforprofessionaltalentsandseniormanagementtalentshasincreasedsignificantly.Countermeasures:First,theCompanyhassteppedupeffortstocultivateandappointyoungleadersandrecruitedmoreprofessionaltalents.Second,theCompanyhaspromotedthereformprogramofappraisalandmotivation,recruitedadvancedtalentsthroughmultipleapproaches,andconstantlyenhancedthedevelopmentofskillexperts,technicalandmanagementpersonnel,andworkersandtechnicianssoastoraisethecontributionrateofhumanresourcesinallrespects.
XIICommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviewsduringtheReportingPeriod
√Applicable□Notapplicable
| Dateofvisit | Placeofvisit | Wayofvisit | Typeofvisitor | Visitor | Contentsandmaterialsprovided | Indextomaininquiryinformation |
| 4January2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ProductusageofHorizonNewEnergyTechnology | http://irm.cninfo.com.cn |
| Co.,Ltd. | ||||||
| 6January2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Development,products,andfinancingofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 12January2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ProductstatusanddevelopmentsuggestionsofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 18January2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Company’sproductionandoperationstatusandproductsuggestions | http://irm.cninfo.com.cn |
| 20January2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ImpactoftheresultsofHorizonNewEnergyontheCompany | http://irm.cninfo.com.cn |
| 27January2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheintentionoftheCompanytorepurchaseshares | http://irm.cninfo.com.cn |
| 31January2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproductR&D,marketadvantages,andsituationoftheoutboardengineproduct | http://irm.cninfo.com.cn |
| 8February2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproductR&D,application,andmarketadvantages | http://irm.cninfo.com.cn |
| 9February2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ProductproductionandsalesofHorizonNewEnergyTechnologyCo.,Ltd.,theprogressoftheCompany’srelocationproject,andproductapplication | http://irm.cninfo.com.cn |
| 10February2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ProductcapacityreleaseofPhaseIIShanxiBaseProjectofHorizonNewEnergy | http://irm.cninfo.com.cn |
| 13February2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ImpactofthedevelopmentdirectionofHorizonNewEnergyTechnologyCo.,Ltd.andprogressoftheCompany’srelocationprojectontheCompany | http://irm.cninfo.com.cn |
| 22February2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’smonthlyproductioncapacity | http://irm.cninfo.com.cn |
| 28February2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ThemonthlyproductioncapacityofHorizonNewEnergyCo.,Ltd. | http://irm.cninfo.com.cn |
| 3March2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’soverseascustomers | http://irm.cninfo.com.cn |
| 18March2022 | http://irm.cn | Othe | Indiv | Individual | Productapplicationof | http://irm.cni |
| info.com.cn | r | idual | investor | HorizonNewEnergyTechnologyCo.,Ltd. | nfo.com.cn | |
| 21March2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’ssharerepurchaseintention,production,andsales,andtheresultsofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 30March2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproductexpansionandR&D,thecustomerprofileandproductioncapacityin2021ofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 14April2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ThemonthlyproductioncapacityoftheseparatorfilmofHorizonNewEnergy | http://irm.cninfo.com.cn |
| 21April2022 | Onlinemeeting | Other | Other | Investorsandthepublic | TheCompany’sproductionandoperatingactivities,andinvestments | Informationon000570Changchai’sResultsPresentationandRoadshowonwww.cninfo.com.cndated21April2022 |
| 28April2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sassets,andintentiontoselltheheldLianceTechnologyshares | http://irm.cninfo.com.cn |
| 6May2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheshipmentsinQ1ofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 11May2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Theimpactofthe“BeltandRoad”ontheCompany | http://irm.cninfo.com.cn |
| 16May2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’ssalesinQ1andcustomers | http://irm.cninfo.com.cn |
| 13June2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | SupplyandcustomersofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 14June2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Company’sshareholdinginHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 15June2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’srelocationproject,theuseofthefundsraised,productR&Dprogress,theCompany’s | http://irm.cninfo.com.cn |
| developmentdirectionandprogress,assistanceofcontrollingshareholderstotheCompany,andoperationandcustomersofHorizonNewEnergyTechnologyCo.,Ltd. | ||||||
| 17June2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Productapplicationfieldsofthesubsidiary,ZhenjiangSiyang | http://irm.cninfo.com.cn |
| 20June2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Purchaseandstorage | http://irm.cninfo.com.cn |
| 23June2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sapplicationfieldsofdieselengineproducts | http://irm.cninfo.com.cn |
| 27June2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ThedevelopmentintentionsoftheCompany’ssubsidiaries | http://irm.cninfo.com.cn |
| 19July2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheshipmentsinQ2ofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 21July2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ThedevelopmentintentionsoftheCompany | http://irm.cninfo.com.cn |
| 23July2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheshipmentsofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 24July2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheshipmentsofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 25July2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ThecompaniesinvestedbytheCompany | http://irm.cninfo.com.cn |
| 26July2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ProductapplicabilityofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 27July2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ProductapplicabilityofHorizonNewEnergyTechnologyCo.,Ltd.andthesituationofitssubsidiary,HorizonNewMaterial | http://irm.cninfo.com.cn |
| 1August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Numberofshareholders | http://irm.cninfo.com.cn |
| 2August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | SuggestionsontheCompany’sdevelopment | http://irm.cninfo.com.cn |
| 2August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | SuggestionsontheCompany’sdevelopment | http://irm.cninfo.com.cn |
| 3August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | EquitysituationofChangzhouSynergeticInnovationPrivate | http://irm.cninfo.com.cn |
| EquityFundinvestedbytheCompany | ||||||
| 5August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sbusiness | http://irm.cninfo.com.cn |
| 8August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheproductcapacityofHorizonNewMaterial,asubsidiaryofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 11August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproducts | http://irm.cninfo.com.cn |
| 17August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproductsandbusiness | http://irm.cninfo.com.cn |
| 18August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproductsandbusiness | http://irm.cninfo.com.cn |
| 19August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheapplicationoftheCompany’sproductsinshipbornemachinery | http://irm.cninfo.com.cn |
| 22August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompanydevelopmentsuggestionsandprogressinrelocation,purchaseandstorage | http://irm.cninfo.com.cn |
| 25August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ImpactoftheresultsofHorizonNewEnergyandsubsidiesofagriculturalmachineryontheCompany’ssales | http://irm.cninfo.com.cn |
| 26August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sdevelopment | http://irm.cninfo.com.cn |
| 31August2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ImpactoftheCompany’sinvestmentinChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)oftheCompany | http://irm.cninfo.com.cn |
| 1September2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’scapitalincreaseinHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 13September2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproductexport | http://irm.cninfo.com.cn |
| 30September2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ThesupportingfieldsoftheCompany’sproducts | http://irm.cninfo.com.cn |
| 12October2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sprogressinpurchaseandstorage,investment,shareholdingintentionsofemployees,andproductioncapacityaftertherelocation | http://irm.cninfo.com.cn |
| 20October2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | CustomersofHorizonNewMaterial,asubsidiaryofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 25October2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | CustomersofHorizonNewMaterial,asubsidiaryofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 8November2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Relocationexpenses | http://irm.cninfo.com.cn |
| 16November2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ImpactoftheNationalEmissionStandardIVforNon-roadVehiclesontheCompany’sproductsandsales,andtheCompany’sproductcertificationandfeaturedservicemonitoringplatforms | http://irm.cninfo.com.cn |
| 17November2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproduction,sales,andmarketofdieselenginesthatmeettheNationalEmissionStandardIVforNon-roadVehicles | http://irm.cninfo.com.cn |
| 24November2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Theintentionofgoingpublic,productapplicability,andproductordersofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 27November2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | CustomercooperationofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 30November2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sproductapplicationandsales,purchaseandstorage,prototypingtestingofthecoldchainhybridpowerproduct,andextensionofChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | http://irm.cninfo.com.cn |
| 5December2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | Supportingfieldsofgeneratingsets | http://irm.cninfo.com.cn |
| 21December2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | TheCompany’sdevelopmentsuggestions,andtheproductionlineandproductcapacityofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
| 23December2022 | http://irm.cninfo.com.cn | Other | Individual | Individualinvestor | ProductioncapacityofHorizonNewEnergyTechnologyCo.,Ltd. | http://irm.cninfo.com.cn |
PartIVCorporateGovernance
IGeneralInformationofCorporateGovernance
IntheReportingPeriod,theCompanywasstrictlyinlinewithlaws,statutessuchasCompanyLaw,SecuritiesLaws,CodeofCorporateGovernanceofListedCompanies,GuideOpiniononEstablishmentofIndependentDirectorSystembyListedCompaniesandGuidelinesonInternalControlsofListedCompaniesandsoon,continuouslyperfectedcorporategovernance,establishedandaccomplishedinternalmanagementandcontrolsystem,consistentlyanddeeplyputforwardcorporategovernanceactivities,soastofurthernormalizedoperationoftheCompany,raisingcorporategovernancelevel,layingaguardforsteadyandhealthydevelopmentoftheCompany,protectlegalrightsandinterestsoftheCompanyandallshareholders.TheCompanypromulgatedorrevisedaseriesofinternalcontrolsystemthroughallaspectsofnormaloperationandmanagementactivitiesinaccordancewitheachnationallawsandregulations,characteristicsoftheindustry,operationandself-managingbusiness,andimproveditcontinuously,andfinallyformedanormativemanagementsystem.Andformulatedaseriesofmanagementsystem,processandstandardcoveredeachoperationlinkandlevelofthefinancialassetscontrol,humanresourcesmanagement,qualityenvironmentmanagementandinternalauditsupervisoretc.,whichensuredalltheworkhadrulestofollow.Indicatebytickmarketwhetherthereisanymaterialincompliancewiththeapplicablelaws,administrativeregulationsandregulationsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.IITheCompany’sIndependencefromItsControllingShareholderandActualControllerinAsset,Personnel,FinancialAffairs,OrganizationandBusinessTheCompanywasindependentfromthecontrollingshareholderChangzhouInvestmentGroupCo.,Ltdintermsofassets,business,personnel,organizationandfinancing,withindependent&completebusinessandcapabilitytooperateindependently.
1.Assets:ThepropertyrightsrelationshipbetweentheCompanyandthecontrollingshareholderisclear,assetsareclearlydefined,andtherearenofunds,assetsandotherresourcesbeingoccupiedorusedwithoutcompensationbetweenthem.
2.Personnel:TheCompanyandthecontrollingshareholderareindependentofeachotherintermsoflabor,personnelandsalarymanagement,andeachhasanindependentmanagementorganization,asoundmanagementpolicy,andanindependentpersonnelappraisalandassessmentsystem.
3.Finance:TheCompanyhassetupaspecialfinancedepartment,establishedanindependentaccountingsystemandfinancialmanagementpolicy,openedanindependentbankaccount,andimplementedindependentaccountingandindependenttaxpayments.ThereisnointerferenceinthefinancialactivitiesoftheCompanybythecontrollingshareholder.
4.Institution:TheCompanyhasacompleteandindependentcorporategovernancestructureandhasestablishedasoundorganizationalsystemthatmeetsitsownproductionandoperationneeds,whichoperatesindependentlyandwell,andthereisnosubordinaterelationshipwiththefunctionaldepartmentsofthecontrollingshareholder.
5.Business:TheCompanyhasanindependentandcompletebusinesssystemwithindependentandautonomous
productionandoperationalcapability.TheCompanyconductsrelatedtransactionsreasonablyontheprincipleofindependence.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Resolution |
| The2021AnnualGeneralMeeting | AnnualGeneralMeeting | 32.33% | 6May2022 | 7May2022 | Allproposalswereapproved.SeeAnnouncementNo.2022-027onResolutionsofthe2021AnnualGeneralMeeting. |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√Notapplicable
VDirectors,SupervisorsandSeniorManagement
1.GeneralInformation
| Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Endingshareholding(share) |
| ShiXinkun | ChairmanoftheBoard | Incumbent | Male | 59 | 18October2016 | Ongoing | 0 |
| ZhangXin | Director,GeneralManager | Incumbent | Male | 57 | 18October2016 | Ongoing | 0 |
| LinTian | Director | Incumbent | Male | 60 | 17December2018 | Ongoing | 0 |
| XuYi | Director,Vice-general | Incumbent | Male | 59 | 16April2020 | Ongoing | 0 |
| Manager | |||||||
| JiangHe | Director,ChiefAccountant | Incumbent | Male | 51 | 16April2020 | Ongoing | 0 |
| YangFeng | Director | Incumbent | Male | 51 | 16April2020 | Ongoing | 0 |
| WangMancang | Independentdirector | Incumbent | Male | 60 | 16April2020 | Ongoing | 0 |
| XingMin | Independentdirector | Incumbent | Male | 69 | 16April2020 | Ongoing | 0 |
| ZhangYan | Independentdirector | Incumbent | Female | 53 | 16April2020 | Ongoing | 0 |
| YinLihou | Vice-generalManager | Incumbent | Male | 59 | 18October2016 | Ongoing | 0 |
| XieGuozhong | Vice-generalManager | Incumbent | Male | 54 | 16April2020 | Ongoing | 0 |
| SunJianzhong | Vice-generalManager | Incumbent | Male | 51 | 16April2020 | Ongoing | 0 |
| HeJianjiang | Vice-generalManagerandSecretaryoftheBoard | Incumbent | Male | 44 | 18October2016 | Ongoing | 0 |
| HeJianguang | ChairmanoftheSupervisoryCommittee | Incumbent | Male | 59 | 17December2020 | Ongoing | 0 |
| LuZhonggui | Supervisor | Incumbent | Male | 56 | 18October2016 | Ongoing | 0 |
| LiuYi | Supervisor | Incumbent | Male | 54 | 18October2016 | Ongoing | 0 |
| ChenLijia | Supervisor | Incumbent | Female | 40 | 16April2020 | Ongoing | 0 |
| GeJiangli | Supervisor | Incumbent | Female | 53 | 16April2020 | Ongoing | 0 |
| Total | -- | -- | -- | -- | -- | -- | 0 |
Indicatewhetheranydirector,supervisororseniormanagementresignedbeforetheexpiryoftheirtenureduring
theReportingPeriod.
□Yes√NoChangeofdirectors,supervisorsandseniormanagement:
□Applicable√Notapplicable
2.BiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
ShiXinkun:NowheactsastheChairmanoftheBoardandPartySecretaryintheCompany,theChairmanoftheBoardinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,theChairmanoftheBoardinShanxiHorizonNewMaterialTechnologyCo.,Ltd.,andanInvestmentandDevelopmentAdvisorforChangzhouInvestmentGroupCo.,Ltd.ZhangXin:HesuccessivelytookthepostsofSalesManager,GeneralManagerAssistant,andvice-generalmanagerinourcompany.Now,heactsasDirector,GeneralManager,deputyPartySecretaryoftheCompanyandexecutivedirectorofJiangsuChangchaiMachineryCo.,Ltd.LinTian:HesuccessivelyworkedasdeputydirectorofenterprisedevelopmentDept.,GMofinvestmentmanagementDept.IIandI,assistantpresidentandvicepresidentinChangzhouInvestmentGroupCo.,Ltd.NowheisanInvestmentandDevelopmentAdvisorforChangzhouInvestmentGroupCo.,Ltd.,andthedirectoroftheCompany.XuYi:successivelyservedasthedirectorandassistanttotheGMoftheCompany’stechnologycenter,andcurrentlyservesasthedirectoranddeputyGMoftheCompany,inadditiontobeingadirectorofHorizonInvestment.JiangHe:successivelyservedastheaccountant,assistanttotheminister,andviceministerofthefinancialdepartmentoftheCompany.Heiscurrentlyadirector,chiefaccountantandministerofthefinancialdepartmentoftheCompany.YangFeng:successivelyservedasthebusinessmanageroftheShanghaiInvestmentBankingDepartmentofChinaEconomicDevelopmentTrustandInvestmentCo.,Ltd.,businessdirectoroftheinvestmentbankingdepartmentofOrientSecuritiesCo.,Ltd.,GMofandassistantchairmanofAJSecurities’investmentbankingdepartment,operationmanagementheadquarters,workedinthedevelopmentfinancedepartmentandinvestmentbankingdepartment,andservedastheEGMintheequipmentgroup,investmentrecommendationgroup,NEEQbusinessdepartmentandcomprehensivegroupofCITICSecuritiesCo.,Ltd.CurrentlyservingasanexecutivedirectorofDeXinInvestmentManageCo.,Limited,andthedirectoroftheCompany.WangMancang:successivelyservedasateacherandlecturerintheDepartmentofManagement,aswellasafinanciallecturerandprofessorintheDepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity,andcurrentlyservesasthedirectoroftheDepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity,counselorofXi'anmunicipalgovernment,chairmanof
ShaanxiSecuritiesResearchSociety,aswellasanindependentdirectorofFocuslightTechnologiesInc.,CcoopGroupCo.,Ltd.,ShaanxiConstructionMachineryCo.,Ltd,Xi'anWonderEnergyChemicalCo.,Ltd.,andtheCompany.XingMin:successivelyservedassecretaryofthePartyCommitteeandadministrativeassistantgeneralmanager(AGM)ofChinaNationalHeavyMachineryCorporation;secretaryofthePartyCommitteeandGMofChinaNationalMachineToolSalesandTechnicalServiceCorporation(CNMTC);currentlyExecutiveViceChairmanandSecretary-GeneralofChinaInternalCombustionEngineIndustryAssociation(CICEIA),IndependentDirectorofZhejiangZhongjianTechnologyCo.,Ltd.,IndependentDirectorofJiangsuYunyiElectricCo.,Ltd.,IndependentDirectorofWeifuHigh-TechnologyGroupCo.,Ltd.,IndependentDirectorofZhejiangXinchaiCo.,Ltd.,directorofActBlueCo.,Ltd.,andIndependentDirectoroftheCompany.ZhangYan:successivelyservedaschiefaccountantofChangzhouZhengdaCertifiedPublicAccountantsCo.,Ltd.,executivedeputychiefaccountantofJiangsuGongzhengCertifiedPublicAccountantsCo.,Ltd.,currentlyassociateprofessorofBusinessSchoolofJiangsuUniversityofTechnology,independentnon-executivedirectorofS-EnjoyServiceGroupCo.,Limited,directorofChangzhouCommunicationsIndustryGroupCo.,Ltd.,aswellasindependentdirectorofWuxiSAHATElectricTechnologyCo.,Ltd.,JiangsuTianmuLakeTourismCo.,Ltd.,andtheCompany.YinLihou:HeworkedasMinisterofHumanResourcesDepartmentandGeneralManagerAssistant.NowheactsasDeputyGeneralManageroftheCompany,andtheChairmanoftheBoardofChangchaiRobin.XieGuozhong:HeusedtobeGeneralManagerAssistant,SecretaryofPartyGeneralBranchandSupervisoroftheCompany.HeisnowDeputyGMoftheCompany,GMoftheSalesCompany,ChairmanoftheBoardofChangchaiWanzhou,andSupervisorofBeiqiFotonMotorCo.,Ltd.SunJianzhong:successivelyservedasthedirectorofthetechnicalcenterandassistanttothegeneralmanageroftheCompany.HeiscurrentlythedeputygeneralmanageroftheCompany,thegeneralmanagerofChangchaiMachinery,andthechairmanoftheboardofChangchaiBenniu.HeJianjiang:HeusedtobetheStaffMember,AssistanttotheChief,andDeputyChiefoftheInvestmentandDevelopmentDepartment,andSecuritiesRepresentativeoftheCompany.NowheisDeputyGeneralManager,SecretaryoftheBoard,andChiefoftheInvestmentandDevelopmentDepartmentoftheCompany,aswellasChairmanoftheBoard&GMofHorizonInvestment,DirectorofHorizonAgriculturalEquipmentandChangchaiWanzhou,ChairmanoftheBoardofZhenjiangSiyang,andSupervisorofDonghaiSecuritiesCo.,Ltd.HeJianguang:successivelyservedasdeputychiefofDesignSectionofChangzhouDieselEngineFactory,engineerofProductDevelopmentDepartment,deputydirectoroftheCompany’sJointVentureOffice,deputydirectorofTechnologyCenter,chiefengineer,director,generalmanager,vicechairmanofChangzhouDieselEngineFactory,amemberofthePartycommittee,secretaryoftheDisciplineInspectionCommissionandsupervisorofChangzhouInvestmentGroupCo.,Ltd.,currentlyaninvestmentanddevelopmentadvisorofChangzhouInvestmentGroupCo.,Ltd.,andchairmanoftheSupervisoryCommitteeoftheCompany.ChenLijia:FormerlyvicepresidentandgeneralmanagerofriskcontrollegaldepartmentofChangzhouInvestmentGroupCo.,Ltd.;andcurrentlydeputygeneralmanagerofChangzhouMetroGroupCo.,Ltd.,andsupervisoroftheCompany.
GeJiangli:FormerlyheadofHumanResourcesDepartmentoftheCompany,andcurrentlysupervisoroftheCompany.LuZhonggui:NowheactsasMinisterofpoliticalDepartmentoftheCompany,OfficeDirector,SecretaryofOrganPartyGeneralBranchaswellasemployeesupervisoroftheCompanyandDirectorofXingshengRealEstateManagement.LiuYi:HesuccessivelytookthepostsofAssistantMinisterofEnterpriseManagementDepartment.NowheactsasDirectorofAuditDepartmentandEmployeeSupervisoroftheCompany,DirectoroftheCompany,SupervisorofChangchaiWanzhou,ChangchaiBenniu,HorizonInvestment,HorizonAgriculturalEquipment,ChangchaiRobin,ChangchaiMachinery,XingshengRealEstateManagementandJiangsuHorizonNewEnergyTechnologyCo.,Ltd.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
| LinTian | ChangzhouInvestmentGroupCo.,Ltd. | InvestmentandDevelopmentAdvisor | October2021 | Yes | |
| ShiXinkun | ChangzhouInvestmentGroupCo.,Ltd. | InvestmentandDevelopmentAdvisor | December2022 | No | |
| HeJianguang | ChangzhouInvestmentGroupCo.,Ltd. | InvestmentandDevelopmentAdvisor | December2022 | Yes | |
| Notes | N/A | ||||
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| ShiXinkun | JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ChairmanoftheBoard | 19November2021 | No | |
| ShanxiHorizonNewMaterialTechnologyCo.,Ltd. | ChairmanoftheBoard | 7February2021 | No | ||
| HeJianjiang | DonghaiSecuritiesCo.,Ltd. | Supervisor | 18January2023 | No | |
| XieGuozhong | BeiqiFotonMotorCo.,Ltd. | Supervisor | 15November2022 | Yes |
| YangFeng | DeXinInvestmentManageCo.,Limited | ExecutiveDirector | 1June2022 | No | |
| WangMancang | FinanceDepartmentofSchoolofEconomics&ManagementNorthwestUniversity | Teacher | 1October1996 | Yes | |
| Xi’anGovernment | Consultant | 1October2015 | |||
| ShaanxiSecuritiesResearchSociety | Chairman | 1October2017 | |||
| Xi’anFocuslightTechnologyCo.,Ltd. | IndependentDirector | 2May2019 | |||
| CcoopGroupCo.,Ltd. | IndependentDirector | 1September2020 | |||
| ShaanxiConstructionMachineryCo.,Ltd. | IndependentDirector | 16November2018 | |||
| Xi'anWonderEnergyChemicalCo.,Ltd. | IndependentDirector | 1June2020 | |||
| XingMin | ChinaInternalCombustionEngineIndustryAssociation | StandingViceChairmanandSecretary-general | 1December2021 | Yes | |
| ZhongjianTechnologyCo.,Ltd | IndependentDirector | 20June2017 | |||
| JiangsuYunyiElectronicCo.,Ltd. | IndependentDirector | 15July2019 | May2022 | ||
| WeifuHigh-TechnologyGroupCo.,Ltd. | IndependentDirector | 20May2021 | |||
| ZhejiangXinchaiCo.,Ltd. | IndependentDirector | 6December2019 | September2022 | ||
| ActBlueCo.,Ltd. | Director | 22November2021 | |||
| ZhangYan | JiangsuUniversityofTechnology | Associateprofessor | 1August2008 | Yes | |
| ChangzhouCommunicationsIndustryGroupCo.,Ltd. | Director | 1May2022 | |||
| WuxiSAHATElectricTechnologyCo.,Ltd. | IndependentDirector | 2November2020 | |||
| JiangsuTianmuLakeTourismCo.,Ltd. | IndependentDirector | 8February2021 | |||
| S-EnjoyServiceGroupCo.,Limited | Independentnon-executivedirector | 20October2018 | |||
| Notes | None | ||||
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√Notapplicable
3.RemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
In2022,themonthlysalariesofdirectors,supervisorsandseniorexecutivesintheCompanywereinlinewiththestipulationsofrelevantsalarymanagementandgradestandards,andthebenefitsoftheCompanyandassessmentresults.DirectorLinTianandSupervisorsHeJianguangobtainedsalariesinshareholders'entities.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
| Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
| ShiXinkun | ChairmanoftheBoard | Male | 59 | Incumbent | 85.49 | No |
| ZhangXin | Director,GeneralManager | Male | 57 | Incumbent | 85.49 | No |
| LinTian | Director | Male | 60 | Incumbent | 0.00 | Yes |
| XuYi | Director,Vice-generalManager | Male | 59 | Incumbent | 74.51 | No |
| JiangHe | Director,ChiefAccountant | Male | 51 | Incumbent | 73.99 | No |
| YangFeng | Director | Male | 51 | Incumbent | 0.00 | No |
| WangMancang | Independentdirector | Male | 60 | Incumbent | 10.00 | No |
| XingMin | Independentdirector | Male | 69 | Incumbent | 10.00 | No |
| ZhangYan | Independentdirector | Female | 53 | Incumbent | 10.00 | No |
| YinLihou | Vice-generalManager | Male | 59 | Incumbent | 73.99 | No |
| XieGuozhong | Vice-generalManager | Male | 54 | Incumbent | 74.51 | No |
| SunJianzhong | Vice-generalManager | Male | 51 | Incumbent | 74.51 | No |
| HeJianjiang | Vice-general | Male | 44 | Incumbent | 74.51 | No |
| ManagerandSecretaryoftheBoard | ||||||
| HeJianguang | ChairmanoftheSupervisoryCommittee | Male | 59 | Incumbent | 0.00 | Yes |
| ChenLijia | Supervisor | Female | 40 | Incumbent | 0.00 | Yes |
| LuZhonggui | Supervisor | Male | 56 | Incumbent | 19.92 | No |
| GeJiangli | Supervisor | Female | 53 | Incumbent | 20.91 | No |
| LiuYi | Supervisor | Male | 54 | Incumbent | 23.18 | No |
| Total | -- | -- | -- | -- | 711.01 | -- |
VIPerformanceofDutybyDirectorsintheReportingPeriod
1.BoardMeetingsConvenedintheReportingPeriod
| Meeting | Dateofmeeting | Disclosuredate | Resolution |
| The1stExtraordinaryMeetingoftheBoardofDirectorsin2022 | 19January2022 | 21January2022 | ThemeetingdeliberatedonandapprovedtheObligationsonConductingForwardForeignExchangeSettlement |
| The11thMeetingofthe9thBoardofDirectors | 21January2022 | —— | ThemeetingdeliberatedonandapprovedtheReportontheWorkoftheGeneralManagerfortheYear2021,theBusinessPolicyObjectivesoftheCompanyfortheYear2022,theResultsofthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2021,theContractonthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2022,andtheProposalonApplicationforBankCreditLine |
| The12thMeetingofthe9thBoardofDirectors | 11April2022 | 13April2022 | ThemeetingdeliberatedonandapprovedtheAnnualReportfor2021andItsSummary,theAnnualWorkReportoftheBoardofDirectorsfor2021,PlanoftheProfitDistributionandConversionofSurplusReservesintoShareCapitalfor2021,ProposalontheRe-appointmentoftheFinancialAuditInstitutionfor2022andItsAuditExpenses,ProposalontheRe-appointmentoftheInternalControlAuditInstitutionfor2022,ProposalonExpandingtheBusinessScopeoftheCompanyandAmendingtheArticlesofAssociationoftheCompany,ProposalonAmendingtheRulesofProcedureoftheBoardMeeting,theProposalonAmendingtheRulesofProcedureoftheGeneralMeeting,theProposalonAmendingthePolicyofIndependentDirectors,SpecialReportontheDepositandUseofRaisedFundsfor2021,theAnnualSelf-EvaluationReportonInternalControlfor2021,theProposalonthe |
| ProvisionofReservesforCreditImpairmentandAssetImpairment,the2021SocialResponsibilityReport,andProposalonConveningtheAnnualGeneralMeetingoftheCompanyfor2021 | |||
| The2ndExtraordinaryMeetingoftheBoardofDirectorsin2022 | 28April2022 | 30April2022 | ThemeetingdeliberatedonandapprovedtheReportfortheFirstQuarterof2022 |
| The3rdExtraordinaryMeetingoftheBoardofDirectorsin2022 | 11July2022 | 12July2022 | ThemeetingdeliberatedonandapprovedtheProposalonUsingOwnIdleFundstoPurchaseWealthManagementProductsandProposalonUsingIdleFundstoPurchaseWealthManagementProducts |
| The13thMeetingofthe9thBoardofDirectors | 22August2022 | 24August2022 | ThemeetingdeliberatedonandapprovedtheSemi-annualReportfor2022andItsSummary,ProposalonProvisionofReservesforCreditImpairmentandAssetImpairment,ProposalonChangeofAccountingPolicy,SpecialReportontheDepositandUseofRaisedFundsfortheSemi-annualPeriodof2022,ProposalonAddingImplementationLocationtothePrivatePlacementRaisedFundsInvestmentProjectofInnovationCapacityBuildingoftheTechnicalCentre,ProposalonAddingImplementationEntitytothePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEnginesandCasting |
| The4thExtraordinaryMeetingoftheBoardofDirectorsin2022 | 25August2022 | 27August2022 | ThemeetingdeliberatedonandapprovedtheProposalonPlanningtoParticipateinCapitalIncreaseandShareExpansionandRelatedTransactionsofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.andtheProposalonPlanningtoSellPartoftheTradingFinancialAssets |
| The5thExtraordinaryMeetingoftheBoardofDirectorsin2022 | 29September2022 | 30September2022 | ThemeetingdeliberatedonandapprovedtheProposalonPlanningtoUseBankAcceptancesforPartofthePaymentsofFund-raisingProjectsandEqualReplacementofRaisedFunds |
| The6thExtraordinaryMeetingoftheBoardofDirectorsin2022 | 17October2022 | 18October2022 | ThemeetingdeliberatedonandapprovedtheProposalonPlanningtoExtendtheOperationPeriodofChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) |
| The14thMeetingofthe9thBoardofDirectors | 28October2022 | 29October2022 | ThemeetingdeliberatedonandapprovedtheReportoftheThirdQuarterof2022 |
| The7thExtraordinaryMeetingoftheBoardofDirectorsin2022 | 15December2022 | 16December2022 | ThemeetingdeliberatedonandapprovedtheProposalonUsingIdleFundstoPurchasetheLimitofWealthManagementProducts |
2.AttendanceofDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Director | Totalnumberofboardmeetingsthedirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingsthedirectorfailedtoattend | Thedirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| ShiXinkun | 11 | 2 | 9 | 0 | 0 | No | 1 |
| ZhangXin | 11 | 2 | 9 | 0 | 0 | No | 1 |
| LinTian | 11 | 1 | 9 | 1 | 0 | No | 1 |
| XuYi | 11 | 2 | 9 | 0 | 0 | No | 1 |
| JiangHe | 11 | 2 | 9 | 0 | 0 | No | 1 |
| YangFeng | 11 | 2 | 9 | 0 | 0 | No | 1 |
| XingMin | 11 | 2 | 9 | 0 | 0 | No | 1 |
| WangMancang | 11 | 2 | 9 | 0 | 0 | No | 1 |
| ZhangYan | 11 | 2 | 9 | 0 | 0 | No | 1 |
Explanationofwhyanydirectorfailedtoattendtwoconsecutiveboardmeetings:
N/A
3.ObjectionsRaisedbyDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranydirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
4.OtherInformationaboutthePerformanceofDutybyDirectorsIndicatebytickmarkwhetheranysuggestionsfromdirectorswereadoptedbytheCompany.
√Yes□NoSuggestionsfromdirectorsadoptedornotadoptedbytheCompany:
AlldirectorsoftheCompanyinlinewiththelaw,rules,normativedocumentsandobligationsgivenbytheCompanyoftheCompanylaw,ArticleofAssociations,RulesofProcedureoftheBoardandIndependentDirectorsWorkRules,comprehensivelyfocusedonthedevelopmentandoperationoftheCompany,activelyattendedthegeneralmeetingofshareholderandmeetingofboardofdirectors.Independentdirectorsgiven
independentopinionsforthesignificanteventsoftheCompany,andeffectivelymaintainedtheprofitsoftheCompanyandalltheshareholders.TheCompanyactivelylistenedtothesuggestionsfromdirectorsuponthesignificanteventsandadoptedthem.Formoredetails,pleaserefertotheReportontheWorkoftheBoardofDirectorsfor2022disclosedbytheCompanyonhttp://www.cninfo.com.cndated12April2023.
VIISpecialCommitteesundertheBoardofDirectorsduringtheReportingPeriod
| Nameofcommittee | Members | Numberofmeetingsconvened | Dateofmeeting | Contents | Importantcommentsandsuggestions | Otherperformanceofduties | Specificdisputedmatters(ifany) |
| AuditCommittee | ZhangYan,WangMancang,LinTian | 3 | 19January2022 | ThemeetingdiscussedandapprovedtheReportonFinancialPre-auditin2021,ReportonAuditPlanArrangementfor2021,ReportonInternalAuditWorkin2021andInternalAuditPlanfor2022andReportontheDepositandUseofRaisedFundsfor2021 | TheCompany'sfinancialstatementshavebeenpreparedinaccordancewiththenewAccountingStandardsforBusinessEnterprisesandtheprovisionsoftheCompany'srelevantfinancialpoliciesandpresentedfairly,inallmaterialrespects,thefinancialstatusoftheCompanyasof31December2021andtheoperatingresultsandcashflowsfor2021.TheCompany'sfinancialandaccountingstatementsareauthenticandaccurate. | ||
| 7April2022 | ThemeetingreviewedandapprovedtheAnnualFinancialStatementsoftheCompanyfor2021,ProposalonProvisionofReservesforAssetImpairment,SpecialReportontheDepositandUseofRaisedFundsfor2021,theAnnualSelf-EvaluationReportonInternalControlfor2021,ProposalontheRe-appointmentoftheFinancialAuditInstitutionfor2022andItsAuditExpenses,andProposalontheRe-appointmentoftheInternalControlAudit | ItwasconsentedthatboththeproposalsshallbesubmittedtotheBoardofDirectorsfordiscussion |
| Institutionfor2022 | |||||
| 18August2022 | ThemeetingdeliberatedonandapprovedtheSemi-annualWorkSummaryoftheAuditDepartmentfor2022,theSemi-annualReportfor2022,ProposalonProvisionofReservesforCreditImpairmentandAssetImpairment,SpecialReportontheDepositandUseofRaisedFundsfortheSemi-annualPeriodof2022,ProposalonChangeofAccountingPolicy,ProposalonAddingImplementationLocationtothePrivatePlacementRaisedFundsInvestmentProjectofInnovationCapacityBuildingoftheTechnicalCentreandProposalonAddingImplementationEntitytothePrivatePlacementRaisedFundsInvestmentProjectofRelocationofLightEnginesandCasting | ItwasconsentedthatboththeproposalsshallbesubmittedtotheBoardofDirectorsfordiscussion | |||
| RemunerationandEvaluationCommittee | XingMin,WangMancang,ShiXinkun | 1 | 20January2022 | ThemeetingdeliberatedonandapprovedtheContractonthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2021andtheContractonthePerformanceAppraisaloftheSeniorManagementoftheCompanyfortheYear2022 | ItwasconsentedthatboththeproposalsshallbesubmittedtotheBoardofDirectorsfordiscussion |
VIIIPerformanceofDutybytheSupervisoryCommittee
IndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.IXEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end | 2,114 |
| Numberofin-serviceemployeesofmajorsubsidiariesattheperiod-end | 542 |
| Totalnumberofin-serviceemployeesattheperiod-end | 2,656 |
| TotalnumberofpaidemployeesintheReportingPeriod | 2,656 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 1,731 |
| Sales | 195 |
| Technical | 356 |
| Financial | 42 |
| Administrative | 288 |
| Other | 44 |
| Total | 2,656 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Juniorhighschoolgraduatesandbelow | 1,133 |
| Highschoolgraduates | 747 |
| Collegegraduatesandtechnicalsecondaryschoolgraduates | 487 |
| Bachelors | 271 |
| Mastersandabove | 18 |
| Total | 2,656 |
2.EmployeeRemunerationPolicyTheCompanyalwaysadheredtotheprincipleoftiltingtheremunerationincentivemechanismtowardsexcellenttalents,soastodisplaytherolesofvariousprofessionaltechnicians,managementstaffsandskilledbackbones.Besides,itadheredtotheprincipleofincreasingtheemployee’sincomeintegratedwithincreasinglaborproductionefficiencyandproduction&operationefficiency,soastoperfectthesalarystructureandfurtherincreaseemployees’incomesteadily.
3.EmployeeTrainingPlansTheCompanyestablishedtheManagementRulesontheEducation&TrainingforEmployees,aimingtoenhanceemployees’qualityandtryitsbesttocultivateateamoffaithfulandhighlyprofessionaltalents.Besides,itinnovatedthetrainingmechanism,optimizedthetrainingenvironment,andreinforcedtoencourageemployeestoattendvarioustraining,soastoinspiretheemployees’potentialtothemaximumextentandfurtherpromotethesustainabledevelopmentoftheCompany.
4.LaborOutsourcing
□Applicable√Notapplicable
XProfitDistributions(intheFormofCashand/orStock)
Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,wasformulated,executedorrevisedintheReportingPeriod:
√Applicable□NotapplicableInArticlesofAssociation,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 |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposaldespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletoshareholdersarepositive.
□Applicable√NotapplicableFinaldividendplanfortheReportingPeriod:
√Applicable□Notapplicable
| Bonussharesforevery10shares(share) | 0 |
| Dividendforevery10shares(RMB)(taxinclusive) | 0.10 |
| Additionalsharestobeconvertedfromcapitalreserveforevery10shares(share) | 0 |
| Totalsharesasthebasisfortheprofitdistributionproposal(share) | 705,692,507 |
| Cashdividends(RMB)(taxinclusive) | 7,056,925.07 |
| Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 0 |
| Totalcashdividends(includingthoseinotherforms)(RMB) | 7,056,925.07 |
| Distributableprofit(RMB) | 915,495,909.35 |
| Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100% |
| Cashdividendpolicy |
| Other |
| Particularsaboutthedividendplan |
| TheBoardhasapprovedafinaldividendplanasfollows:basedonthetotalsharecapitaloftheCompanyat31December2022,acashdividendofRMB0.10(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves. |
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIFormulationandImplementationofInternalControlSystemduringtheReportingPeriod
1.InternalControlFormulationandImplementationDuringtheReportingPeriod,theCompanystrictlycompliedwithnationallawsandregulationsandrelevantregulationssuchastheBasicCodeforInternalControlofEnterprisesandtheGuidelinesforApplicationofEnterpriseInternalControl,aswellastheprovisionsandrequirementsoftheCompany'sinternalcontrolstandards,andoptimizedimportantbusinessprocessesandimprovedandperfectedtheinternalcontrolsystemthroughcontinuoussupervisionandeffectiveevaluationoftheoperationoftheCompany'sinternalcontrol,soastoadapttothechangingexternalenvironmentandinternalmanagementrequirementsandimprovetheefficiencyoftheCompany'soperationandmanagement.Bydoingso,theCompanyeffectivelypreventedrisksinoperationandmanagement,andpromotedtheachievementofinternalcontrolobjectives.TheCompany'sinternalcontrolsystemcancoverthemajoraspectsoftheCompany'soperationandmanagement,andtheinternalcontroldesignissoundandreasonable,withnomaterialomissions.
2.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√NoXIIIManagementofSubsidiariesbytheCompanyduringtheReportingPeriod
| Subsidiary | Integrationplan | Progressonintegration | Problemsfoundinintegration | Solutionstaken | Solutionprogress | Subsequentsolution |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | AsthelargestshareholderofZhenjiangSiyang,theCompanynominateddirectors, | On16May2022,ZhenjiangSiyangconvenedameetingofshareholders,theBoardofDirectors,andtheBoardofSupervisorstoelectnewmembersoftheBoardof | N/A | N/A | N/A | N/A |
| supervisors,andManagementpersonnelforthenewBoardofDirectorsandBoardofSupervisorsanddispatchedManagement,financial,andtechnicalpersonneltoZhenjiangSiyangforproductionandoperationsmanagement. | Directors,theBoardofSupervisorsandtheManagement.ThedirectorsdesignatedbytheCompanyaccountedformorethanhalfandZhenjiangSiyangwasincludedintheCompany’sconsolidatedreport.TheCompanydesignatedthreeManagementpersonneltoZhenjiangSiyangforroutinemanagement,financial,andtechnicalposts. |
XIVSelf-EvaluationReportorIndependentAuditor’sReportonInternalControl
1.InternalControlSelf-EvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 12April2023 | |
| Indextothedisclosedinternalcontrolself-evaluationreport | 2023-011 | |
| 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. | Defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)Seriouslyviolatedthenationallawsandadministrativeregulationsandthenormativedocuments;2)“threesignificantonegreat”eventhadnotbeenthroughthecollectivedecision-makingprocess;3)thesignificanteventsinvolvedwiththeproductionandoperationoftheCompanylackedofsystematiccontrolortheinstitutionalsystemwasinvalid;4)theinternalcontroloftheinformationdisclosurewas |
| Naturestandards:defectswiththefollowingrandomcharacteristicsshouldberecognizedasseriousdefect:1)thedefectinvolveswiththemalpracticeoftheDirectors,SupervisorsandSeniorExecutives;2)revisedthedisclosedfinancialreport;3)CPAsdiscoveredthegreatmisstatementamongthecurrentfinancialstatementwhilewhichcouldnotbefoundduringtheoperatingprocessoftheinternalcontrol;4)thesupervisionfromtheAuditCommitteeandtheinternalauditinstitutionoftheenterprisewasinvalid. | invalid,whichledtheCompanybeopencondemnedbythesupervisiondepartment;5)theseriousdefectfromtheassessmentresultsoftheinternalcontrolhadnotbeenrevised. | |
| Quantitativestandard | Quantitativestandards:Thequantitativestandardsofrecognizingthesignificantdegreeofthemisstatement(includingthefalsenegatives)oftheconsolidatedfinancialreportoftheCompanybasedonthedatafromthe2022consolidatedstatementswasas:Seriousdefect:misstatement≥5%oftheannualprofitsImportantdefect:2.5%oftheannualprofits≤misstatement＜5%oftheannualprofitsGeneraldefect＜2.5%oftheannualprofits | Refertothequantitativecriteriaoftheinternalcontroldefectofthefinancialreport,torecognizethequantitativecriteriaofthesignificantdegreeoftheinternalcontroldefectofthenon-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 | |
2.IndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
| WebelievedthatChangchaiCompany,LimitedmaintainedeffectiveinternalcontrolofthefinancialreportinsignificantaspectsaccordingtotheBasicNormsofInternalControlandrelevantregulationson31December2022. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 10April2023 |
| Indextosuchreportdisclosed | S.G.W[2023]E1111 |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□NoXVRemediationofProblemsIdentifiedbySelf-inspectionintheSpecialActionontheGovernanceofListedCompaniesN/A
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssuesIndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoAdministrativepunishmentsreceivedintheReportingPeriodduetoenvironmentalissues:
| Companyorsubsidiary | Reasonforpunishment | Violation | Punishment | ImpactontheCompany | RectificationmeasuresoftheCompany |
| N/A | N/A | N/A | N/A | N/A | N/A |
ActionstakenduringtheReportingPeriodtoreducecarbonemissionsandtheimpact:
√Applicable□NotapplicableSeethe2022SocialResponsibilityReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated12April2023.Reasonsfornotdisclosingotherenvironment-relatedinformation:
N/A
IISocialResponsibility
Seethe2022SocialResponsibilityReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated12April2023.IIIEffortsinPovertyAlleviationandRuralRevitalizationN/A
PartVISignificantEventsIFulfillmentofCommitments
1.CommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
√Applicable□Notapplicable
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutshareholdingreduction | 1.ThecompanyanditscontrolledrelatedpartieshavenotreducedtheirholdingsofsharesofChangchaiCompanyfromthesixmonthspriortotheannouncementofthedecisionoftheBoardofDirectorsofChangchaiCompany,Limited("ChangchaiCompany")concerningtheproposaltoconsiderthenon-publicofferingofsharestothedateofissuanceofthisLetterofCommitment.2.ThecompanyanditscontrolledrelatedpartieshavenoplantoreducetheirholdingsofsharesofChangchaiCompanyfromthedateofissuanceofthisLetterofCommitmenttosixmonthsafterthecompletionofthisissuance. | 29September2020 | 10October2019-30June2022 | Expired |
| ChangzhouInvestmentGroupCo.,Ltd. | Aboutsharetra | ItwillnottransferthesharesithasobtainedintheprivateplacementofChangchaiwithin36monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5July2024 | Ongoing |
| dingrestriction | |||||
| ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.ItundertakesnottointerfereintheCompany'soperationandmanagementactivitiesbeyonditsauthorityandnottoencroachontheCompany'sinterests;2.Itundertakesnottotransferbenefitstootherentitiesorindividualsfreeofchargeoronunfairterms,nortoimpairtheinterestsoftheCompanybyanyothermeans;3.AftertheissuanceofthisLetterofCommitmentandbeforethecompletionoftheCompany'snon-publicofferingofshares,iftheChinaSecuritiesRegulatoryCommission(CSRC)makesothernewregulatoryprovisionsonthereturnfillingmeasuresandcommitments,andtheaforesaidcommitmentscannotmeetsuchprovisionsoftheCSRC,itundertakestoissuesupplementarycommitmentsinaccordancewiththelatestprovisionsoftheCSRC;4.ItundertakestoeffectivelyimplementtheCompany'smeasurestofillthereturnandanycommitmentsmadethereon.IftheCompanybreachessuchcommitmentsandcauseslossestotheCompanyortheinvestors,theCompanyiswillingtocompensatetheCompanyortheinvestorsaccordingtolaw. | 11April2020 | 11April2020-31December9999 | Ongoing |
| UBSAG,CaitongFundManagementCo.,Ltd.,ChangzhouTrafficConstructionInvestmentDevelopmentGeneralCompany,ChenBeiwen,GuotaiAssetManagementCo.,Ltd.,JiangxiJintou | Aboutsharetradi | I/WeundertakethatI/wewillnottransferthesharesI/wehaveobtainedintheprivateplacementofChangchaiwithin6monthsstartingfromthedatewhentheprivateplacementofA-sharesisallowedforpublictrading. | 5July2021 | 5July2021-5January2022 | Expired |
| IndustrialDevelopmentCo.,Ltd.,LiXueqin,NanhuaFundCo.,Ltd.,Enjoy(Ningbo)AssetManagementL.P.,NuodeAssetManagementCo.,Ltd.,SunMeichun,MinmetalsSecuritiesCo.,Ltd.,YaoJianquan,ChinaNationalGoldGroupAssetManagementCo.,Ltd.,andZhouZhiheng | ngrestriction | |||||
| Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | Aboutdividends | RewardsPlanforShareholdersinNextThreeYears(2020-2022)Underthepremiseofpositivedistributiveprofit(remainingafter-taxprofitsaftermakingupforthelossandextractingforthecommonreserves)inthisyearorhalfyearandabundantmoneyflowandnoinfluenceonthefollowing-upgoingconcernaftercashbonus,theprofitsallocatedbycasheveryyearshouldn’tbelowerthan10%oftheallocableprofitsfromparentcompany.Meanwhile,theaccumulatedallocableprofitsbycashinthearbitrarycontinuousthreeaccountingyearsshouldnotbelowerthan30%oftheannualaverageallocableprofitsinthosethreeyears. | 8May2020 | Year2020-2022 | Expired |
| Fulfilledontimeornot | Yes | |||||
| Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A | |||||
2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√NotapplicableIIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheLatestPeriod
□Applicable√Notapplicable
VExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandCorrectionofMaterialAccountingErrors
√Applicable□Notapplicable
| Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
| TheCompanystartstoimplementthe“Accountingtreatmentforsalesofproductsorby-productsbyenterprisesgeneratedfromfixedassetsbeforereachingtheintendedstateofavailabilityorfromtheperiodofR&D”and“Judgmentononerouscontracts”and“Presentationofcentralizedcapitalmanagement”stipulatedintheAccountingStandardsforBusinessEnterprisesInterpretationNo.15issuedbytheMinistryofFinancein2021since1January2022. | On22August2022,the13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteewereheldbytheCompanyonwhichtheProposalonChangesofAccountingPolicieswasapproved. | Notesofchangestoaccountingpolicies-(1) |
| TheCompanystartstoimplementthe“accountingtreatmentoftheincometaxeffectoffinancialinstrumentrelateddividendwhoseissuerisclassifiedasequityinstrument”and“accountingtreatmentofshare-basedpaymentincashsettlementmodifiedintoshare-basedpaymentinequitysettlementbytheenterprise”stipulatedintheAccountingStandardsforBusinessEnterprisesInterpretationNo.16issuedbytheMinistryofFinancein2022since13December2022. | / | Notesofchangestoaccountingpolicies-(2) |
Descriptionofchangesinaccountingpolicies:
(1)TheimpactofimplementingtheInterpretationNo.15ofAccountingStandardsforBusinessEnterprisesontheCompanyOn31December2021,theMinistryofFinanceissuedtheInterpretationNo.15ofAccountingStandardsforBusinessEnterprises(C.K.[2021]No.35)(hereinafterreferredtoas“InterpretationNo.15”).Contentsof“accountingtreatmentofexternalsalesofproductsorby-productproducedbytheenterprisebeforethefixedassetsreachtheintendedusablestateorduringtheresearchanddevelopmentprocess(hereinafterreferredtoas‘TrialSales’)”and“judgmentonloss-makingcontracts”cameintoforceon1January2022.TheCompanyimplementedInterpretationNo.15sincethedateofissuance,andtheimplementationhasnomaterialimpactonthefinancialstatementsduringthereportingperiod.
(2)TheimpactofimplementingtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprisesontheCompanyOn13December2022,theMinistryofFinanceissuedtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprises(C.K.[2022]No.31)(hereinafterreferredtoas“InterpretationNo.16”).Theregulationsof“accountingtreatmentfordeferredincometaxrelatingtoassetsandliabilitiesarisingfromasingletransactionthatisnotsubjecttotheinitialrecognitionexemption”cameintoforceon1January2023,allowingcompaniestoimplementtheexemptionpriortotheyearofissuance,whichhasnotbeenimplementedbytheCompanyinadvancethisyear.Inaddition,thecontentsof“accountingtreatmentoftheincometaxeffectoffinancialinstrumentrelateddividendwhoseissuerisclassifiedasequityinstrument”and“accountingtreatmentofshare-basedpaymentincashsettlementmodifiedintoshare-basedpaymentinequitysettlementbytheenterprise”cameintoforceontheissuancedate.TheCompanyimplementedInterpretationNo.16sincethedateofissuance,andtheimplementationhasnomaterialimpactonthefinancialstatementsduringthereportingperiod.VIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
√Applicable□NotapplicableTheSixthExtraordinaryMeetingoftheBoardofDirectorsin2021heldbytheCompanyon28October2021deliberatedonandapprovedtheProposalonParticipationinBiddingfor41.5%EquityInterestsinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.,authorizingtheManagementoftheCompanytoparticipateinbiddingfor41.5%equityinterestinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.(hereinafterreferredtoas"ZhenjiangSiyang")thathadbeenputoutforsalebyJiangsuKedaAssetsMarketingCo.,Ltd.(hereinafter,“KedaAssets”).On12January2022,JiangsuAssetsandEquityExchangeCo.,Ltd.issuedtheConfirmationofTransactionontheTransferof41.5%EquityInterests(CorrespondingtoCapitalContributionofRMB830,000)inZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.TheCompanywonthebidforthe41.5%equityinterestsinZhenjiangSiyangatapriceofRMB33,520,800.00.On23February2022,theCompanysignedtheContractonTransferofState-ownedPropertyRightswithKedaAssets.On9March2022,ZhenjiangSiyanghascompletedtherelevantregistrationalterationformalitieswiththecompetentindustrialandcommercialadministration.On16May2022,ZhenjiangSiyangheldmeetingsofshareholders,theBoardofDirectorsandtheSupervisoryCommitteetoelectandappointnewmembersfortheBoardofDirectors,theSupervisoryCommitteeandmanagement.TheCompanyholdsmorethanhalfoftheboardseatsofZhejiangSiyangandZhenjiangSiyanghasbeenincludedintheconsolidatedfinancialstatementsoftheCompany.Sincethen,thenumberofsubsidiarieswithintheconsolidationscopeoftheCompanyincreasestoeightfromseven.
VIIIEngagementandDisengagementofIndependentAuditor
Currentindependentauditor:
| Nameofthedomesticindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 60 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 21 |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | WangWenkai,QinZhijun |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | TwoyearsforWangWenkai,twoyearsforQinZhijun |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
√Applicable□NotapplicableInthisyear,theCompanyretainedGongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership)astheauditinstitutionforitsinternalcontrolattheauditfeesofRMB120,000.
IXPossibilityofDelistingafterDisclosureofthisReport
□Applicable√NotapplicableXInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIMajorLegalMatters
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
XIIICreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
√Applicable□NotapplicableThedefactocontrolleroftheCompanyisSASACofChangzhouPeople’sGovernmentandthecontrollingshareholderofitisChangzhouInvestmentGroupCo.,Ltd.Thereisnosuchcasethatthecontrollingshareholderfailstoperformanylegallyeffectivejudgmentofcourtsortopayoffmatureddebtswithalargeamount.XIVMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Related-PartyTransactionsRegardingPurchaseorDisposalofAssetsorEquityInvestments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.AmountsDuetoandfromRelatedParties
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.TransactionswithRelatedFinanceCompanies
□Applicable√NotapplicableTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.
6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany
□Applicable√NotapplicableThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
√Applicable□Notapplicable
On25August2022,theCompanyheldtheFourthInterimMeetingoftheBoardofDirectorsandtheFourthInterimMeetingoftheSupervisoryCommitteein2022anddeliberatedandapprovedtheProposalonPlanningtoParticipateinCapitalIncreaseandShareExpansionandRelatedTransactionsofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,agreeingtoincreaseRMB75millioncapitaltoHorizonNewEnergyforthesubscriptionofitsnewlyregisteredcapitalofRMB18,844,200andauthorizingShiXinkun,theCompany’sChairman,tosigncapitalincreaseagreementswithrelatedparties.InAugust2022,HorizonNewEnergyanditsshareholderssignedtheCapitalIncreaseAgreementofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,agreeingthattheregisteredcapitalofHorizonNewEnergywasincreasedfromRMB1,405,622,491toRMB1.75billion.InOctober2022,HorizonNewEnergycompletedtheindustrialandcommercialchangeregistrationproceduresaccordingtotheaforesaidcapitalincreaseagreementandobtainedthenewbusinesslicense.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed
| Titleofpublicannouncement | Disclosuredate | Disclosurewebsite |
| ProposalonPlanningtoParticipateinCapitalIncreaseandShareExpansionandRelatedTransactionsofJiangsuHorizonNewEnergyTechnologyCo.,Ltd. | 27August2022 | www.cninfo.com.cn |
XVMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
√Applicable□Notapplicable
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
| Guarantee-receivingentity | Disclosuredateofthe | Lineofguarantee | Actualoccurrencedate | Actualguarantee | Typeofguarantee | Termofguarantee | Havingexpire | Guaranteefora |
| guaranteelineannouncement | (agreementsigningdate) | amount | dornot | relatedpartyornot | ||||
| GuaranteesprovidedbytheCompanyastheparentforitssubsidiaries | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 15April2021 | 2,000 | 7May2021 | 2,000 | Jointliability | 1year | Yes | No |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 0 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 500 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 0 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 0 | |||||
| Guaranteesbetweensubsidiaries | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(agreementsigningdate) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 0 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 500 | |||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 0 | TotalactualguaranteebalanceattheendoftheReportingPeriod | 0 | |||||
| (A4+B4+C4) | ||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 0.00% | |
| Ofwhich: | ||
| Balanceofguaranteesprovidedforshareholders,thedefactocontrollerandtheirrelatedparties(D) | 0 | |
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforentitieswithanover70%debt/assetratio(E) | 0 | |
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 0 | |
| Totalofthethreeamountsabove(D+E+F) | 0 | |
| Possibilityofhavingtoexecutejointliabilityonoutstandingguarantees(ifany) | N/A | |
| Irregularitiesintheprovisionofguaranteestoexternalparties(ifany) | N/A | |
Compoundguarantees:N/A
3.CashEntrustedforWealthManagement
(1)CashEntrustedforWealthManagement
√Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
| Specifictype | Capitalresources | Amountincurred | Unduebalance | Unrecoveredoverdueamount | Unrecoveredoverdueamountwithprovisionforimpairment |
| Brokerfinancialproducts | Self-funded | 885 | 600 | 0 | 0 |
| Bankfinancialproducts | Self-funded | 18,200 | 18,200 | 0 | 0 |
| Brokerfinancialproducts | Raised-funded | 5,000 | 0 | 0 | 0 |
| Bankfinancialproducts | Raised-funded | 28,000 | 10,000 | 0 | 0 |
| Total | 52,085 | 28,800 | 0 | 0 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidity:
□Applicable√NotapplicableSituationwheretheprincipalisexpectedlyirrecoverableoranimpairmentmaybeincurred:
□Applicable√Notapplicable
(2)EntrustedLoans
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIOtherSignificantEvents
□Applicable√NotapplicableXVIISignificantEventsofSubsidiaries
□Applicable√Notapplicable
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
| 1.Restrictedshares | 144,318,181 | 20.45% | -87,500,000.00 | -87,500,000.00 | 56,818,181 | 8.05% | |||
| 1.1Sharesheldbygovernment | 0 | 0.00% | 0.00 | 0.00 | 0 | 0.00% | |||
| 1.2Sharesheldbystate-ownedlegalpersons | 72,045,453 | 10.21% | -15,227,272.00 | -15,227,272.00 | 56,818,181.00 | 8.05% | |||
| 1.3Sharesheldbyotherdomesticinvestors | 68,863,638 | 9.76% | -68,863,638.00 | -68,863,638.00 | 0 | 0.00% | |||
| Amongwhich:Sharesheldbydomesticlegalpersons | 48,818,178 | 6.92% | -48,818,178.00 | -48,818,178.00 | 0 | 0.00% | |||
| Sharesheldbydomesticnaturalpersons | 20,045,460 | 2.84% | -20,045,460.00 | -20,045,460.00 | 0 | 0.00% | |||
| 1.4Sharesheldbyforeigninvestors | 3,409,090 | 0.48% | -3,409,090.00 | -3,409,090.00 | 0 | 0.00% | |||
| Amongwhich:Sharesheldbyforeignlegalpersons | 3,409,090 | 0.48% | -3,409,090.00 | -3,409,090.00 | 0 | 0.00% | |||
| Sharesheldbyforeignnaturalpersons | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 2.Unrestrictedshares | 561,374,326 | 79.55% | 87,500,000.00 | 87,500,000.00 | 648,874,326 | 91.95% | |
| 2.1RMB-denominatedordinaryshares | 411,374,326 | 58.29% | 87,500,000.00 | 87,500,000.00 | 498,874,326 | 70.69% | |
| 2.2Domesticallylistedforeignshares | 150,000,000 | 21.26% | 0 | 0 | 150,000,000 | 21.26% | |
| 2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 2.4Other | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |
| 3.Totalshares | 705,692,507 | 100.00% | 0 | 0 | 705,692,507 | 100.00% |
Reasonsforthesharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
√Applicable□Notapplicable
Unit:share
| Nameoftheshareholders | Restrictedsharesamountattheperiod-begin | Restrictedsharesrelievedoftheperiod | Restrictedsharesincreasedoftheperiod | Restrictedsharesamountattheperiod-end | Restrictedreasons | Restrictedsharesrelieveddate |
| UBSAG | 3,409,090 | 3,409,090 | 0 | 0 | Additionalissuanceof3,409,090shares | 5January2022 |
| throughtheprivateplacementofshares | ||||||
| CaitongFundManagementCo.,Ltd. | 7,909,090 | 7,909,090 | 0 | 0 | Additionalissuanceof7,909,090sharesthroughtheprivateplacementofshares | 5January2022 |
| JiangxiJintouIndustrialDevelopmentCo.,Ltd. | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 5January2022 |
| GuotaiAssetManagementCo.,Ltd. | 8,181,818 | 8,181,818 | 0 | 0 | Additionalissuanceof8,181,818sharesthroughtheprivateplacementofshares | 5January2022 |
| Enjoy(Ningbo)AssetManagementL.P. | 6,818,181 | 6,818,181 | 0 | 0 | Additionalissuanceof6,818,181sharesthroughtheprivateplacementofshares | 5January2022 |
| ZhouZhiheng | 3,409,090 | 3,409,090 | 0 | 0 | Additionalissuanceof3,409,090sharesthroughtheprivateplacementofshares | 5January2022 |
| ChinaNationalGoldGroupAssetManagementCo.,Ltd. | 10,681,818 | 10,681,818 | 0 | 0 | Additionalissuanceof10,681,818sharesthroughtheprivateplacementofshares | 5January2022 |
| SunMeichun | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 5January2022 |
| NuodeAssetManagementCo.,Ltd. | 11,363,636 | 11,363,636 | 0 | 0 | Additionalissuanceof11,363,636sharesthroughtheprivateplacementofshares | 5January2022 |
| MinmetalsSecuritiesCo.,Ltd. | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 5January2022 |
| ChenBeiwen | 7,272,727 | 7,272,727 | 0 | 0 | Additionalissuanceof7,272,727sharesthroughtheprivateplacementofshares | 5January2022 |
| NanhuaFundCo.,Ltd. | 5,454,545 | 5,454,545 | 0 | 0 | Additionalissuanceof5,454,545sharesthroughtheprivateplacementofshares | 5January2022 |
| YaoJianquan | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 5January2022 |
| ChangzhouTransportationConstructionInvestmentDevelopmentCo.,Ltd. | 4,545,454 | 4,545,454 | 0 | 0 | Additionalissuanceof4,545,454sharesthroughtheprivateplacementofshares | 5January2022 |
| LiXueqin | 272,735 | 272,735 | 0 | 0 | Additionalissuanceof272,735sharesthroughtheprivateplacementofshares | 5January2022 |
| Total | 87,500,000 | 87,500,000 | 0 | 0 | -- | -- |
II.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable√Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable
3.ExistingStaff-HeldShares
□Applicable√NotapplicableIIIShareholdersandActualController
Unit:share
| Numberofordinaryshareholders | 50,886 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 49,998 | Numberofpreferredshareholderswithresumedvotingrights | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport | 0 | |||||||
| 5%orgreatershareholdersortop10shareholders | ||||||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | |||||||
| Status | Shares | |||||||||||||
| ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 32.26% | 227,663,417 | 56,818,181 | 170,845,236 | |||||||||
| ChenJian | Domesticnaturalperson | 0.71% | 4,979,900 | 4,979,900 | ||||||||||
| MORGANSTANLEY&CO.INTERNATIONALPLC. | Foreignlegalperson | 0.45% | 3,146,392 | 3,146,392 | ||||||||||
| KGIASIALIMITED | Foreignlegalperson | 0.44% | 3,101,695 | 3,101,695 | ||||||||||
| YangXuee | Domesticnaturalperson | 0.37% | 2,611,500 | 2,611,500 | ||||||||||
| ChinaMinshengBank-GoldstateYuanqiDynamicAssetAllocationMixedTypeSecuritiesInvestmentFund | Other | 0.36% | 2,530,800 | 2,530,800 | ||||||||||
| CLSAAssetManagementLimited-Clients’Capital | Foreignlegalperson | 0.25% | 1,780,068 | 1,780,068 | ||||||||||
| DaiWenping | Domesticnaturalperson | 0.25% | 1,776,200 | 1,776,200 | ||||||||||
| LiSuinan | Domesticnaturalperson | 0.22% | 1,569,100 | 1,569,100 | ||||||||||
| HuangGuoliang | Domesticnaturalperson | 0.22% | 1,528,891 | 1,528,891 | ||||||||||
| Strategicinvestororgenerallegal | N/A | |||||||||||||
| personbecomingatop-10ordinaryshareholderduetorightsissue(ifany) | |||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| Aboveshareholdersinvolvedinentrusting/beingentrustedwithvotingrightsandgivingupvotingrights | N/A | ||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | ||
| Top10unrestrictedshareholders | |||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |
| Type | Shares | ||
| ChangzhouInvestmentGroupCo.,Ltd | 170,845,236 | RMB-denominatedordinaryshare | 170,845,236 |
| ChenJian | 4,979,900 | RMB-denominatedordinaryshare | 4,979,900 |
| MORGANSTANLEY&CO.INTERNATIONALPLC. | 3,146,392 | RMB-denominatedordinaryshare | 3,146,392 |
| KGIASIALIMITED | 3,101,695 | Domesticallylistedforeignshare | 3,101,695 |
| YangXuee | 2,611,500 | RMB-denominatedordinaryshare | 2,611,500 |
| ChinaMinshengBank-GoldstateYuanqiDynamicAssetAllocationMixedTypeSecuritiesInvestmentFund | 2,530,800 | RMB-denominatedordinaryshare | 2,530,800 |
| CLSAAssetManagementLimited-Clients’Capital | 1,780,068 | RMB-denominatedordinaryshare | 1,780,068 |
| DaiWenping | 1,776,200 | RMB-denominatedordinaryshare | 1,776,200 |
| LiSuinan | 1,569,100 | Domesticallylistedforeignshare | 1,569,100 |
| HuangGuoliang | 1,528,891 | Domesticallylistedforeignshare | 1,528,891 |
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholdersChenJianandDaiWenpingheld3,320,000and1,610,200sharesrespectivelyintheCompanythroughtheirmarginaccounts. |
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyalocalstate-ownedlegalpersonTypeofthecontrollingshareholder:Legalperson
| Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| ChangzhouInvestmentGroupCo.,Ltd | ChenLimin | 20June2002 | 91320400467283980X | Propertyinvestmentandmanagement |
| Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | None | |||
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Localinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:Legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment | WangWenzhuo | 11320400014110251M | Notapplicable | |
| Otherlistedcompaniesathomeorabroadcontrolledbytheactual | None | |||
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.NumberofAccumulativePledgedSharesheldbytheCompany’sControllingShareholderortheLargestShareholderaswellasItsActing-in-ConcertPartiesAccountsfor80%ofallsharesoftheCompanyheldbyThem
□Applicable√Notapplicable
5.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
√Applicable□NotapplicableChangzhouInvestmentGroupCo.,Ltd.,thecontrollingshareholderoftheCompany,participatedinthenon-publicofferingofsharesoftheCompanyandwasallotted56,818,181shareswithasubscriptionamountofRMB249,999,996.40.Theshareswerelistedon5July2021,witha36-monthlock-upperiodandareleasedateof5July2024.
IVSpecificImplementationofShareRepurchaseduringtheReportingPeriodProgressonanysharerepurchase
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding
□Applicable√Notapplicable
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
□Applicable√Notapplicable
PartXFinancialStatements
IIndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 10thApril2023 |
| Nameoftheindependentauditor | GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership) |
| No.oftheauditor’sreport | S.G.No.W[2023]A351 |
| Nameofthecertifiedpublicaccountants | WangWenkai,QinZhijun |
TextoftheIndependentAuditor’sReport
TotheShareholdersofChangchaiCompany,Limited,
IOpinionWehaveauditedtheaccompanyingfinancialstatementsofChangchaiCompany,Limited.(togetherwithitsconsolidatedsubsidiariesincludedintheconsolidatedfinancialstatements,the“Company”),whichcomprisetheparent’sandconsolidatedbalancesheetsasat31December2022,theparent’sandconsolidatedincomestatements,theparent’sandconsolidatedcashflowstatements,theparent’sandconsolidatedstatementsofchangesinowners’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionofChangchaiCompany,Limited.Asat31December2022andtheconsolidatedandparentbusinessperformanceandcashflowfor2022.IIBasisforOpinionWeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Andkeyauditmatteridentifiedinourauditissummarizedasfollows:
(I)Recognitionofrevenue
1.DescriptionoftheitemFordetailsandanalysisoftheaccountingpoliciesforrevenuerecognition,pleaserefertoaccountingpoliciesstatedinthenotestofinancialstatements“III.30.Revenue”and“V.37.Operatingincomeandoperatingcost”.In2022,theoperatingincomeofChangchaiCompanyamountedtoRMB2,182,043,100.SincetheoperatingrevenueisoneofkeyperformanceindicatorsoftheCompany,andthereistheinherentriskthatthemanagementmaymanipulatethetimingofrevenuerecognitionforthepurposeofachievingcertaingoalsorexpectations,soweidentifytherevenuerecognitionasakeyaudititem.
2.Responseforaudit
(1)Knowthekeyinternalcontrolrelatedtorevenuerecognition,evaluatewhetheritsdesignandexecutionarevalidornot,andtesttheoperationeffectivenessoftherelatedinternalcontrol.
(2)Interviewthemanagement,knowabouttherecognitionpoliciesregardingrevenueoftheCompany,getandcheckcontractsoragreementsoftheCompanysignedwithcustomers,identifycontracttermsrelatedtotherecognitionofsalesrevenueofproductsandevaluatewhethertherevenuerecognitionoftheCompanymeetstherequirementsofaccountingstandardsforbusinessenterprises.
(3)Forsalesrevenue,conductingsamplingtestsonsupportingdocumentsrelatedtorevenuerecognition,soastochecksupportingdocumentssuchastermsassociatedwithcontroltransferofcommoditiesinsalescontractsanddocumentationcollectedandacknowledgedbyauxiliarymanufacturers(includingbutnotlimitedtosalescontracts,orders,salesinvoices,deliverynotes,exportcustomsdeclarations,etc.);
(4)Checktheoperatingrevenuerecognizedbeforeandafterthebalancesheetdatetothesupportingdocuments,suchasshippingorder,declarationforexportation,andetcbysamplingmethodtoassesswhethertheoperatingrevenueisrecognizedwithinappropriateperiod.
(5)Implementtheconfirmationbydrawingsampletorecognizethebalanceofaccountsreceivableandtheamountofsalesrevenueaccordingtothefeaturesandnaturesofcustomertransaction.(II)Baddebtprovisionforaccountsreceivable
1.DescriptionoftheitemAsaccountingpoliciesstatedinthenotestofinancialstatements“III.10.Impairmentoffinancialinstruments”and“V.4.Accountsreceivable”.On31December2022,thebookbalanceofaccountsreceivableofChangchaiCompanystoodatRMB522,168,300,thebaddebtprovisionamountedtoRMB151,846,100million,andthebookvaluewasRMB370,322,200,accountingfor7.10%ofthetotalassetsattheendofthereportingperiod.AsthebalanceofaccountsreceivableissignificantandthejudgementoftheManagementisinvolvedinthewithdrawalofbaddebtprovisionofaccountsreceivable,weconsiderthisasakeyauditmatter.
2.Responseforaudit
(1)AccessChangchai’sinternalcontrolsystemsofsalesandaccountsreceivablemanagementtounderstandandevaluatethedesignofinternalcontrol,andcarryoutwalk-throughtesttoconfirmtheimplementationofinternalcontrolsystems.
(2)AnalyzeandconfirmthereasonablenessofChangchai’saccountingestimatesofbaddebtprovisionforaccountsreceivable,includingthebasisfordeterminingthecombinationofaccountsreceivable,theexpectedcreditlossrateandthejudgmentofimpairmenttestofaccountsreceivableevaluatedindividually.
(3)Combinedbaddebtprovisionpolicyforaccountsreceivable,verifyingtheaccuracyofthebasisfordeterminingaccountsreceivableportfolioandthereasonablenessofbaddebtprovisionseparatelyaccrued;
(4)Accessandchecktheaccountreceivabledetails,agingschedule,statementofprovisionsforbaddebts,andconfirmthereasonablenessofbaddebtprovisionforaccountsreceivablebycombiningwiththerequestofconfirmationofbalanceandsubsequentcollectioninspection;
(5)Foraccountsreceivablewithbaddebtprovisionbysingleitem,referringtocorrespondingcontractsandotherinformationtoobtainanunderstandingofsalesandrepaymentsanddeterminewhetherthebaddebtprovisionbysingleitemisadequatelywithdrawn.
(6)Sendrequestforconfirmationofbalance,andconfirmtheauthenticityandaccuracyoftheamountofaccountsreceivableonthebalancesheetdatebycombiningwithsubsequentinspectionandotherprocedures.IVOtherInformationTheCompany’smanagement(hereinafterreferredtoas“management”)isresponsiblefortheotherinformation.TheotherinformationcomprisesalloftheinformationincludedintheCompany’s2022AnnualReportotherthan
thefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.VResponsibilitiesofManagementandThoseChargedwithGovernanceforFinancialStatementsThemanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveafairviewinaccordancewithCAS,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,mattersrelatedtogoingconcern(ifapplicable)andusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VIAuditor’sResponsibilitiesforAuditofFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredbyCAStodrawusers’attentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatements.Ifsuchdisclosuresareinadequate,weneedtomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancial
statementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheCompanyaudit.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregardingtheplannedscopeandtimingoftheauditandsignificantauditfindings,includinganynoteworthydeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.GongzhengTianyeCertifiedPublicAccountantsChineseCPA:WangWenkai
(SpecialGeneralPartnership)(EngagementPartner)
ChineseCPA:QinZhijunWuxi·China10thApril2023IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
31December2022
Unit:RMB
| Item | 31December2022 | 1January2022 |
| Currentassets: | ||
| Monetaryassets | 930,013,350.97 | 707,966,678.74 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 370,103,602.57 | 404,053,261.57 |
| Derivativefinancialassets | ||
| Notesreceivable | 297,125,872.54 | 334,311,236.78 |
| Accountsreceivable | 370,322,179.77 | 375,209,126.48 |
| Accountsreceivablefinancing | 242,813,392.79 | 497,388,826.02 |
| Prepayments | 6,330,202.69 | 8,197,418.39 |
| Premiumsreceivable |
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 32,938,305.16 | 19,515,350.52 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 571,996,881.74 | 651,083,758.18 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 49,279,022.49 | 44,060,822.57 |
| Totalcurrentassets | 2,870,922,810.72 | 3,041,786,479.25 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | 39,309,587.93 | 37,898,226.39 |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 955,560,240.08 | 779,877,646.53 |
| Othernon-currentfinancialassets | 373,500,000.00 | 112,500,000.00 |
| Investmentproperty | 42,160,779.65 | 44,597,255.21 |
| Fixedassets | 720,061,387.76 | 402,915,521.65 |
| Constructioninprogress | 30,281,547.56 | 270,305,690.91 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 157,392,217.54 | 155,154,745.91 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | 3,279,970.32 | 110,345.30 |
| Deferredincometaxassets | 26,220,575.93 | 10,693,809.23 |
| Othernon-currentassets | 670,735.93 | 4,543,240.88 |
| Totalnon-currentassets | 2,348,437,042.70 | 1,818,596,482.01 |
| Totalassets | 5,219,359,853.42 | 4,860,382,961.26 |
| Currentliabilities: | ||
| Short-termborrowings | 115,437,700.65 | 73,971,466.65 |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 471,876,397.72 | 550,774,400.00 |
| Accountspayable | 747,010,098.88 | 666,186,668.82 |
| Advancesfromcustomers | 837,425.55 | 660,965.62 |
| Contractliabilities | 32,843,692.83 | 26,864,081.97 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 49,351,022.47 | 45,385,667.48 |
| Taxespayable | 8,570,175.39 | 5,306,378.82 |
| Otherpayables | 160,046,882.93 | 148,361,373.29 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 78,645,741.16 | 88,938,192.79 |
| Totalcurrentliabilities | 1,664,619,137.58 | 1,606,449,195.44 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 36,205,625.94 | 39,615,355.40 |
| Deferredincometaxliabilities | 161,360,251.33 | 117,344,161.11 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 197,565,877.27 | 156,959,516.51 |
| Totalliabilities | 1,862,185,014.85 | 1,763,408,711.95 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 640,133,963.01 | 640,676,218.40 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 655,341,704.07 | 506,011,499.55 |
| Specificreserve | 18,848,856.75 | 18,812,950.04 |
| Surplusreserves | 349,197,725.72 | 334,144,488.46 |
| Generalreserve | ||
| Retainedearnings | 915,495,909.35 | 872,212,354.88 |
| TotalequityattributabletoownersoftheCompanyastheparent | 3,284,710,665.90 | 3,077,550,018.33 |
| Non-controllinginterests | 72,464,172.67 | 19,424,230.98 |
| Totalowners’equity | 3,357,174,838.57 | 3,096,974,249.31 |
| Totalliabilitiesandowners’equity | 5,219,359,853.42 | 4,860,382,961.26 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
| Item | 31December2022 | 1January2022 |
| Currentassets: | ||
| Monetaryassets | 792,744,709.77 | 615,184,387.01 |
| Held-for-tradingfinancialassets | 280,354,111.11 | 262,004,030.14 |
| Derivativefinancialassets | ||
| Notesreceivable | 282,556,327.54 | 312,118,296.88 |
| Accountsreceivable | 329,060,940.50 | 349,135,255.42 |
| Accountsreceivablefinancing | 291,837,385.00 | 497,388,826.02 |
| Prepayments | 3,097,586.07 | 2,727,652.23 |
| Otherreceivables | 179,596,495.57 | 26,497,081.34 |
| Including:Interestreceivable | ||
| Dividendsreceivable | ||
| Inventories | 397,626,837.43 | 516,588,187.24 |
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | ||
| Othercurrentassets | 15,594,949.05 | 21,292,211.46 |
| Totalcurrentassets | 2,572,469,342.04 | 2,602,935,927.74 |
| Non-currentassets: | ||
| Investmentsindebtobligations | 39,309,587.93 | 37,898,226.39 |
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 569,273,530.03 | 535,752,730.03 |
| Investmentsinotherequityinstruments | 955,560,240.08 | 779,877,646.53 |
| Othernon-currentfinancialassets | 373,500,000.00 | 112,500,000.00 |
| Investmentproperty | 42,160,779.65 | 44,597,255.21 |
| Fixedassets | 249,558,305.21 | 325,034,679.67 |
| Constructioninprogress | 18,366,604.84 | 15,557,418.76 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 64,783,364.89 | 66,621,426.26 |
| Developmentcosts | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 19,860,262.43 | 9,613,375.32 |
| Othernon-currentassets |
| Totalnon-currentassets | 2,332,372,675.06 | 1,927,452,758.17 |
| Totalassets | 4,904,842,017.10 | 4,530,388,685.91 |
| Currentliabilities: | ||
| Short-termborrowings | 108,437,700.65 | 58,971,466.65 |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 518,918,596.58 | 544,444,400.00 |
| Accountspayable | 541,911,517.64 | 546,689,207.59 |
| Advancesfromcustomers | 837,425.55 | 660,965.62 |
| Contractliabilities | 24,129,579.35 | 24,730,270.44 |
| Employeebenefitspayable | 41,558,489.86 | 37,861,577.50 |
| Taxespayable | 3,119,171.69 | 2,955,053.82 |
| Otherpayables | 151,206,684.89 | 135,773,368.98 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 67,810,395.33 | 63,535,570.11 |
| Totalcurrentliabilities | 1,457,929,561.54 | 1,415,621,880.71 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | ||
| Deferredincome | 36,205,625.94 | 39,615,355.40 |
| Deferredincometaxliabilities | 149,039,152.68 | 95,034,251.50 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 185,244,778.62 | 134,649,606.90 |
| Totalliabilities | 1,643,174,340.16 | 1,550,271,487.61 |
| Owners’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 659,418,700.67 | 659,418,700.67 |
| Less:Treasurystock |
| Othercomprehensiveincome | 655,341,704.07 | 506,011,499.55 |
| Specificreserve | 18,848,856.75 | 18,812,950.04 |
| Surplusreserves | 349,197,725.72 | 334,144,488.46 |
| Retainedearnings | 873,168,182.73 | 756,037,052.58 |
| Totalowners’equity | 3,261,667,676.94 | 2,980,117,198.30 |
| Totalliabilitiesandowners’equity | 4,904,842,017.10 | 4,530,388,685.91 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
| Item | 2022 | 2021 |
| 1.Revenue | 2,182,043,095.61 | 2,452,430,515.60 |
| Including:Operatingrevenue | 2,182,043,095.61 | 2,452,430,515.60 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 2,247,441,538.64 | 2,399,524,185.52 |
| Including:Costofsales | 1,948,677,036.52 | 2,084,671,762.08 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 16,973,196.26 | 15,125,948.96 |
| Sellingexpense | 102,630,223.71 | 117,242,290.32 |
| Administrativeexpense | 119,511,189.72 | 98,890,284.22 |
| R&Dexpense | 81,239,597.06 | 82,390,284.14 |
| Financecosts | -21,589,704.63 | 1,203,615.80 |
| Including:Interestexpense | 1,993,453.71 | 5,907,625.42 |
| Interestincome | 12,804,077.19 | 7,921,535.62 |
| Add:Otherincome | 7,184,028.05 | 6,633,332.38 |
| Returnoninvestment(“-”forloss) | 7,969,467.19 | 9,327,296.95 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 145,243,457.17 | 104,570,498.36 |
| Creditimpairmentloss(“-”forloss) | -2,953,740.73 | -52,017,151.82 |
| Assetimpairmentloss(“-”forloss) | -14,367,197.27 | -8,676,024.20 |
| Assetdisposalincome(“-”forloss) | 393,161.73 | 155,515.49 |
| 3.Operatingprofit(“-”forloss) | 78,070,733.11 | 112,899,797.24 |
| Add:Non-operatingincome | 4,257,942.65 | 4,037,896.76 |
| Less:Non-operatingexpense | 618,463.56 | 1,637,033.05 |
| 4.Profitbeforetax(“-”forloss) | 81,710,212.20 | 115,300,660.95 |
| Less:Incometaxexpense | 2,464,079.74 | 12,368,786.58 |
| 5.Netprofit(“-”fornetloss) | 79,246,132.46 | 102,931,874.37 |
| 5.1Byoperatingcontinuity |
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 79,246,132.46 | 102,931,874.37 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byownership | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent | 76,684,796.91 | 103,006,232.54 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 2,561,335.55 | -74,358.17 |
| 6.Othercomprehensiveincome,netoftax | 149,330,204.52 | 80,528,741.31 |
| AttributabletoownersoftheCompanyastheparent | 149,330,204.52 | 80,528,741.31 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | 149,330,204.52 | 80,528,741.31 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 149,330,204.52 | 80,528,741.31 |
| 6.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 6.1.5Other | ||
| 6.2Itemsthatwillbereclassifiedtoprofitorloss | ||
| 6.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 6.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 6.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 6.2.5Reserveforcashflowhedges | ||
| 6.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 6.2.7Other | ||
| Attributabletonon-controllinginterests | ||
| 7.Totalcomprehensiveincome | 228,576,336.98 | 183,460,615.68 |
| AttributabletoownersoftheCompanyastheparent | 226,015,001.43 | 183,534,973.85 |
| Attributabletonon-controllinginterests | 2,561,335.55 | -74,358.17 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.1087 | 0.1657 |
| 8.2Dilutedearningspershare | 0.1087 | 0.1657 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
| Item | 2022 | 2021 |
| 1.Operatingrevenue | 1,988,473,044.55 | 2,267,232,119.78 |
| Less:Costofsales | 1,784,345,704.10 | 1,944,820,462.59 |
| Taxesandsurcharges | 11,846,885.20 | 11,893,439.38 |
| Sellingexpense | 97,601,117.35 | 106,770,873.83 |
| Administrativeexpense | 90,150,661.31 | 80,635,862.36 |
| R&Dexpense | 72,372,647.10 | 75,021,386.36 |
| Financecosts | -22,274,862.27 | -2,350,968.39 |
| Including:Interestexpense | 1,531,942.32 | 3,932,469.12 |
| Interestincome | 15,122,552.35 | 8,354,523.54 |
| Add:Otherincome | 6,504,428.46 | 5,810,480.10 |
| Returnoninvestment(“-”forloss) | 36,604,658.62 | 8,352,714.26 |
| Including:Shareofprofitorlossofjointventuresandassociates | 28,800,000.00 | |
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | 186,354,111.11 | 35,754,030.14 |
| Creditimpairmentloss(“-”forloss) | -8,854,137.91 | -16,143,004.02 |
| Assetimpairmentloss(“-”forloss) | -11,526,145.82 | -3,866,890.01 |
| Assetdisposalincome(“-”forloss) | 4,181,548.77 | 6,642.47 |
| 2.Operatingprofit(“-”forloss) | 167,695,354.99 | 80,355,036.59 |
| Add:Non-operatingincome | 345,409.40 | 3,441,588.57 |
| Less:Non-operatingexpense | 102,766.76 | 1,086,173.24 |
| 3.Profitbeforetax(“-”forloss) | 167,937,997.63 | 82,710,451.92 |
| Less:Incometaxexpense | 17,405,625.04 | -4,219,121.23 |
| 4.Netprofit(“-”fornetloss) | 150,532,372.59 | 86,929,573.15 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 150,532,372.59 | 86,929,573.15 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | 149,330,204.52 | 80,528,741.31 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | 149,330,204.52 | 80,528,741.31 |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | 149,330,204.52 | 80,528,741.31 |
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other | ||
| 5.2Itemsthatwillbereclassifiedtoprofitorloss |
| 5.2.1Othercomprehensiveincomethatwillbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.2.2Changesinthefairvalueofinvestmentsinotherdebtobligations | ||
| 5.2.3Othercomprehensiveincomearisingfromthereclassificationoffinancialassets | ||
| 5.2.4Creditimpairmentallowanceforinvestmentsinotherdebtobligations | ||
| 5.2.5Reserveforcashflowhedges | ||
| 5.2.6Differencesarisingfromthetranslationofforeigncurrency-denominatedfinancialstatements | ||
| 5.2.7Other | ||
| 6.Totalcomprehensiveincome | 299,862,577.11 | 167,458,314.46 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
| Item | 2022 | 2021 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,089,127,900.17 | 1,806,075,487.79 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 38,479,590.77 | 50,016,426.49 |
| Cashgeneratedfromotheroperatingactivities | 22,990,293.44 | 22,636,726.19 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,150,597,784.38 | 1,878,728,640.47 |
| Paymentsforcommoditiesandservices | 1,312,012,931.69 | 1,648,743,526.28 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 313,119,839.28 | 323,020,547.09 |
| Taxespaid | 52,344,111.33 | 31,276,348.44 |
| Cashusedinotheroperatingactivities | 108,190,624.24 | 142,011,997.96 |
| Subtotalofcashusedinoperatingactivities | 1,785,667,506.54 | 2,145,052,419.77 |
| Netcashgeneratedfrom/usedinoperatingactivities | 364,930,277.84 | -266,323,779.30 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 914,060,767.00 | 373,180,033.58 |
| Returnoninvestment | 17,913,476.59 | 11,396,891.86 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 692,980.99 | 589,226.24 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 11,400,123.61 | |
| Subtotalofcashgeneratedfrominvestingactivities | 944,067,348.19 | 385,166,151.68 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 48,439,287.62 | 139,772,849.33 |
| Paymentsforinvestments | 1,033,581,567.00 | 709,038,171.10 |
| Netincreaseinpledgedloansgranted |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 1,869,322.91 | |
| Subtotalofcashusedininvestingactivities | 1,082,020,854.62 | 850,680,343.34 |
| Netcashgeneratedfrom/usedininvestingactivities | -137,953,506.43 | -465,514,191.66 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 633,873,281.14 | |
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 7,000,000.00 | 19,000,000.00 |
| Cashgeneratedfromotherfinancingactivities | 128,437,700.65 | 58,971,466.65 |
| Subtotalofcashgeneratedfromfinancingactivities | 135,437,700.65 | 711,844,747.79 |
| Repaymentofborrowings | 12,000,000.00 | 29,000,000.00 |
| Interestanddividendspaid | 18,689,380.47 | 1,707,729.02 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 83,623,545.07 | 14,621,163.63 |
| Subtotalofcashusedinfinancingactivities | 114,312,925.54 | 45,328,892.65 |
| Netcashgeneratedfrom/usedinfinancingactivities | 21,124,775.11 | 666,515,855.14 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | -152,802.06 | -2,215,203.09 |
| 5.Netincreaseincashandcashequivalents | 247,948,744.46 | -67,537,318.91 |
| Add:Cashandcashequivalents,beginningoftheperiod | 562,402,221.59 | 629,939,540.50 |
| 6.Cashandcashequivalents,endoftheperiod | 810,350,966.05 | 562,402,221.59 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
| Item | 2022 | 2021 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,040,092,339.55 | 1,721,407,332.48 |
| Taxrebates | 27,588,745.34 | 39,451,775.67 |
| Cashgeneratedfromotheroperatingactivities | 21,378,587.89 | 16,788,453.39 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,089,059,672.78 | 1,777,647,561.54 |
| Paymentsforcommoditiesandservices | 1,330,893,073.67 | 1,632,770,616.35 |
| Cashpaidtoandforemployees | 243,134,907.26 | 267,953,154.75 |
| Taxespaid | 39,870,320.72 | 21,295,926.17 |
| Cashusedinotheroperatingactivities | 222,082,917.91 | 129,115,999.33 |
| Subtotalofcashusedinoperatingactivities | 1,835,981,219.56 | 2,051,135,696.60 |
| Netcashgeneratedfrom/usedinoperatingactivities | 253,078,453.22 | -273,488,135.06 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 855,000,000.00 | |
| Returnoninvestment | 45,708,640.27 | 10,222,037.17 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 38,250,224.61 | 124,954.89 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 938,958,864.88 | 10,346,992.06 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 8,002,707.77 | 5,665,400.94 |
| Paymentsforinvestments | 983,520,800.00 | 484,148,226.39 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 1,869,322.91 | |
| Subtotalofcashusedininvestingactivities | 991,523,507.77 | 491,682,950.24 |
| Netcashgeneratedfrom/usedininvestingactivities | -52,564,642.89 | -481,335,958.18 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | 633,873,281.14 | |
| Borrowingsraised | 5,000,000.00 | |
| Cashgeneratedfromotherfinancingactivities | 128,437,700.65 | 58,971,466.65 |
| Subtotalofcashgeneratedfromfinancingactivities | 128,437,700.65 | 697,844,747.79 |
| Repaymentofborrowings | 10,000,000.00 | |
| Interestanddividendspaid | 18,348,005.18 | 160,362.10 |
| Cashusedinotherfinancingactivities | 80,503,408.97 | 14,621,163.63 |
| Subtotalofcashusedinfinancingactivities | 98,851,414.15 | 24,781,525.73 |
| Netcashgeneratedfrom/usedinfinancingactivities | 29,586,286.50 | 673,063,222.06 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | -1,851,060.10 | -1,401,721.22 |
| 5.Netincreaseincashandcashequivalents | 228,249,036.73 | -83,162,592.40 |
| Add:Cashandcashequivalents,beginningoftheperiod | 476,410,739.41 | 559,573,331.81 |
| 6.Cashandcashequivalents,endoftheperiod | 704,659,776.14 | 476,410,739.41 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinOwners’Equity2022
Unit:RMB
| Item | 2022 | ||||||||||||
| EquityattributabletoownersoftheCompanyastheparent | Non-controllinginterests | Totalowners’equity | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||
Preferredshares
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 640,676,218.40 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 872,212,354.88 | 3,077,550,018.33 | 19,424,230.98 | 3,096,974,249.31 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
| Adjustmentforbusiness |
| combinationundercommoncontrol | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 640,676,218.40 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 872,212,354.88 | 3,077,550,018.33 | 19,424,230.98 | 3,096,974,249.31 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -542,255.39 | 149,330,204.52 | 35,906.71 | 15,053,237.26 | 43,283,554.47 | 207,160,647.57 | 53,039,941.69 | 260,200,589.26 | |||||
| 3.1Totalcomprehensiveincome | 149,330,204.52 | 76,684,796.91 | 226,015,001.43 | 2,561,335.55 | 228,576,336.98 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | -542,255.39 | -542,255.39 | 50,478,606.14 | 49,936,350.75 | |||||||||
| 3.2.1Ordinarysharesincreasedbyowners | |||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | -542,255.39 | -542,255.39 | 50,478,606.14 | 49,936,350.75 | |||||||||
| 3.3Profitdistribution | 15,053,237.26 | -33,401,242.44 | -18,348,005.18 | -18,348,005.18 | |||||||||
| 3.3.1Appropriationtosurplusreserves | 15,053,237.26 | -15,053,237.26 | |||||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | -18,348,005.18 | -18,348,005.18 | -18,348,005.18 | ||||||||||
| 3.3.4Other | |||||||||||||
| 3.4Transferswithinowners’ |
| equity | |||||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | 35,906.71 | 35,906.71 | 35,906.71 | ||||||||||
| 3.5.1Increaseintheperiod | 4,877,232.12 | 4,877,232.12 | 4,877,232.12 | ||||||||||
| 3.5.2Usedintheperiod | 4,841,325.41 | 4,841,325.41 | 4,841,325.41 | ||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 |
2021
Unit:RMB
| Item | 2021 | ||
| EquityattributabletoownersoftheCompanyastheparent | Non-cont | Total | |
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | rollinginterests | owners’equity | |||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 561,374,326.00 | 164,328,665.43 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 777,899,079.66 | 2,273,349,347.02 | 19,498,589.15 | 2,292,847,936.17 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
| Adjustmentforbusinesscombinationundercommoncontrol | |||||||||||||||
| Otheradjustments | |||||||||||||||
| 2.Balanceasatthebeginningoftheyear | 561,374,326.00 | 164,328,665.43 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 777,899,079.66 | 2,273,349,347.02 | 19,498,589.15 | 2,292,847,936.17 | ||||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 144,318,181.00 | 476,347,552.97 | 80,528,741.31 | -36.51 | 8,692,957.32 | 94,313,275.22 | 804,200,671.31 | -74,358.17 | 804,126,313.14 | ||||
| 3.1Totalcomprehensiveincome | 80,528,741.31 | 103,006,232.54 | 183,534,973.85 | -74,358.17 | 183,460,615.68 | ||||||||
| 3.2Capitalincreasedandreducedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | 620,665,733.97 | |||||||||
| 3.2.1Ordinarysharesincreasedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | 620,665,733.97 | |||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||||||||||
| 3.2.4Other | |||||||||||||
| 3.3Profitdistribution | 8,692,957.32 | -8,692,957.32 | |||||||||||
| 3.3.1Appropriationtosurplusreserves | 8,692,957.32 | -8,692,957.32 | |||||||||||
| 3.3.2Appropriationtogeneralreserve | |||||||||||||
| 3.3.3Appropriationtoowners(orshareholders) | |||||||||||||
| 3.3.4Other | |||||||||||||
| 3.4Transferswithinowners’equity | |||||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||||||||||
| 3.4.3Lossoffsetbysurplusreserves | |||||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | -36.51 | -36.51 | -36.51 | ||||||||||
| 3.5.1Increaseintheperiod | 4,023,200.24 | 4,023,200.24 | 4,023,200.24 | ||||||||||
| 3.5.2Usedintheperiod | 4,023,236.75 | 4,023,236.75 | 4,023,236.75 | ||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 640,676,218.40 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 872,212,354.88 | 3,077,550,018.33 | 19,424,230.98 | 3,096,974,249.31 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinOwners’EquityoftheCompanyastheParent2022
Unit:RMB
| Item | 2022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 659,418,700.67 | 505,663,130.88 | 18,812,950.04 | 334,144,488.46 | 756,385,421.25 | 2,980,117,198.30 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 659,418,700.67 | 505,663,130.88 | 18,812,950.04 | 334,144,488.46 | 756,385,421.25 | 2,980,117,198.30 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 149,330,204.52 | 35,906.71 | 15,053,237.26 | 117,131,130.15 | 281,550,478.64 | |||||||
| 3.1Totalcomprehensiveincome | 149,330,204.52 | 150,532,372.59 | 299,862,577.11 | |||||||||
| 3.2Capitalincreasedandreducedbyowners | ||||||||||||
| 3.2.1Ordinaryshares | ||||||||||||
| increasedbyowners | |||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | |||||
| 3.2.4Other | |||||
| 3.3Profitdistribution | 15,053,237.26 | -33,401,242.44 | -18,348,005.18 | ||
| 3.3.1Appropriationtosurplusreserves | 15,053,237.26 | -15,053,237.26 | |||
| 3.3.2Appropriationtoowners(orshareholders) | -18,348,005.18 | -18,348,005.18 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinowners’equity | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||
| 3.4.3Lossoffsetbysurplusreserves | |||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings |
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 35,906.71 | 35,906.71 | ||||||||
| 3.5.1Increaseintheperiod | 4,877,232.12 | 4,877,232.12 | ||||||||
| 3.5.2Usedintheperiod | 4,841,325.41 | 4,841,325.41 | ||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 659,418,700.67 | 654,993,335.40 | 18,848,856.75 | 349,197,725.72 | 873,516,551.40 | 3,261,667,676.94 |
2021
Unit:RMB
| Item | 2021 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalowners’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 561,374,326.00 | 183,071,147.70 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 677,800,436.75 | 2,191,993,186.38 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balanceasatthebeginningoftheyear | 561,374,326.00 | 183,071,147.70 | 425,482,758.24 | 18,812,986.55 | 325,451,531.14 | 677,800,436.75 | 2,191,993,186.38 | |||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 144,318,181.00 | 476,347,552.97 | 80,528,741.31 | -36.51 | 8,692,957.32 | 78,236,615.83 | 788,124,011.92 | |||
| 3.1Totalcomprehensiveincome | 80,528,741.31 | 86,929,573.15 | 167,458,314.46 | |||||||
| 3.2Capitalincreasedandreducedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | |||||||
| 3.2.1Ordinarysharesincreasedbyowners | 144,318,181.00 | 476,347,552.97 | 620,665,733.97 | |||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinowners’equity | ||||||||||
| 3.2.4Other | ||||||||||
| 3.3Profitdistribution | 8,692,957.32 | -8,692,957.32 | ||||||||
| 3.3.1Appropriationtosurplusreserves | 8,692,957.32 | -8,692,957.32 | ||||||||
| 3.3.2Appropriationtoowners(orshareholders) | ||||||||||
| 3.3.3Other | ||||||||||
| 3.4Transferswithinowners’equity | ||||||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves |
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | -36.51 | -36.51 | ||||||||
| 3.5.1Increaseintheperiod | 4,023,200.24 | 4,023,200.24 | ||||||||
| 3.5.2Usedintheperiod | 4,023,236.75 | 4,023,236.75 | ||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 659,418,700.67 | 506,011,499.55 | 18,812,950.04 | 334,144,488.46 | 756,037,052.58 | 2,980,117,198.30 |
Legalrepresentative:ShiXinkunGeneralManager:ZhangXinHeadoftheaccountingdepartment:JiangHe
III.CompanyProfile
ChangchaiCompany,Limited(hereinafterreferredtoas“theCompany”)wasfoundedon5May1994,whichisacompanylimitedbysharespromotedsolelybyChangzhouDieselEnginePlantthroughtheapprovalbytheStateCommissionforRestructuringtheEconomicSystemswithdocumentTGS[1993]No.9on15January1993bywayofpublicofferingofshares.WiththeapprovedofthePeople’sGovernmentofJiangsuProvinceSZF[1993]No.67,aswellasreexaminedandapprovedbyChinaSecuritiesRegulatoryCommission(“CSRC”)throughdocumentZJFSZ(1994)No.9,theCompanyinitiallyissuedAsharestothepublicfrom15March1994to30March1994.AsapprovedbytheShenzhenStockExchangethroughdocumentSZSFZ(1994)No.15,suchtradablesharesofthepublicgotlistingon1July1994atShenzhenStockExchangewith“SuChangchaiA”forshortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).In1996,withtherecommendationoftheOfficeofthePeople’sGovernmentofJiangsuProvinceSZBH[1996]No.13,aswellasfirstreviewbyShenzhenMunicipalSecuritiesAdministrationOfficethroughSZBZ[1996]No.24,andapprovaloftheStateCouncilSecuritiesCommissionZWF[1996]No.27,theCompanyissued100millionBsharestoqualifiedinvestorson27August1996to30August1996,gettinglistedon13September1996.On9June2006,theCompanyheldashareholders’generalmeetingrelatedtoAsharesmarkettoexamineandapprovesharemergerreformplan,andperformedthesharemergerreformon19June2006.Asexaminedandapprovedatthe2
nd
ExtraordinaryGeneralMeetingof2009inSeptember2009,basedonthetotalsharecapitalof374,249,551sharesasat30June2009,theCompanyimplementedtheprofitdistributionplan,i.e.todistribute5bonussharesandcashofRMB0.80forevery10shares,withregisteredcapitalincreasedbyRMB187,124,775.00,aswellasregisteredcapitalofRMB561,374,326.00afterchange,whichverifiedbyJiangsuGongzhengTianyeCertifiedPublicAccountantsCompanyLimitedwithissuingCapitalVerificationReportSGC[2010]No.B002.Anon-publicofferingofupto168,412,297newshareswasdeliberatedonandapprovedasaresolutionofthe2020AnnualGeneralMeetingheldon7May2021andapprovedbytheApprovaloftheNon-publicOfferingofSharesofChangchaiCo.,Ltd.(CSRCPermit[2020]No.3374)issuedbyChangchaiCompanyLimitedtheChinaSecuritiesRegulatoryCommission.On16June2021,thecapitalverificationreport"S.G.W[2021]B062"wasissuedbyGongzhengTianyeAccountingFirm(SpecialGeneralPartnership),confirmingthattheCompanyhadissued144,318,181RMBordinaryshares(Ashares)inanon-publicoffering,withanadditionalpaid-incapital(sharecapital)ofRMB144,318,181.ThetotalamountraisedwasRMB634,999,996.40;thenetamountraisedwasRMB620,665,733.97,whichincreasedthecapitalreserve(sharecapitalpremium)byRMB476,347,552.97.Asof31December2021,thetotalsharecapitaloftheCompanywasRMB705,692,507.CredibilitycodeoftheCompany’sLicenseofBusinessCorporation:91320400134792410W.TheCompany’sregisteredaddressissituatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu,aswellasitsheadofficelocatedatNo.123HuaideMiddleRoad,Changzhou,Jiangsu.TheCompanybelongstomanufacturingwithbusinessscopeincludingmanufacturingandsaleofdieselengine,dieselenginespartandcasting,grainharvestingmachine,rotarycultivators,walkingtractor,mouldandfixtures,assemblingandsaleofdieselgeneratingsetandpumpingunit.TheCompanymainlyengagedintheproductionandsalesofsmallandmedium-sizedsinglecylindersandmulti-cylinderdieselenginewiththelabelofChangchaiBrand.ThedieselengineproducedandsoldbytheCompanyweremainlyusedintractors,combineharvestmodels,lightcommercialvehicle,farmequipment,small-sizedconstructionmachinery,generatingsetsandshipbornemachineryandequipment,etc.TheCompany’smainbusinessremainedunchangedintheReporting
Period.TheCompanyestablishedtheShareholders’GeneralMeeting,theBoardofDirectorsandtheSupervisoryCommittee,Corporateoffice,FinancialDepartment,PoliticalDepartment,InvestmentandDevelopmentDepartment,AuditDepartment,HumanRecoursesDepartment,ProductionDepartment,ProcurementDepartment,SalesCompany,ChiefEngineerOffice,TechnologyCenter,QADepartment,FoundryBranch,MachineProcessingBranch,Single-cylinderEnginebranch,Multi-cylinderEngineBranchandOverseasBusinessDepartmentintheCompany.ThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorson10April2023.TheconsolidatedscopeoftheCompanyoftheReportingPeriodincludestheCompanyastheparentand8subsidiaries.ForthedetailsoftheconsolidatedscopeoftheReportingPeriodandthechangessituation,pleaserefertothechangesoftheconsolidatedscopeofthenotestothefinancialreportandthenotestotheequitiesamongotherentities.IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusinessEnterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2014)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.ContinuationTheCompanycomprehensivelyevaluatedtheinformationacquiredrecentlythattherewouldbenosuchfactorsinthe12monthsfromtheendoftheReportingPeriodthatwouldobviouslyinfluencethecontinuationcapabilityoftheCompanyandpredictedthattheoperatingactivitieswouldcontinueinthefuture12monthsoftheCompany.Thefinancialstatementcompiledbaseonthecontinuousoperation.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyandeachsubsidiaryaccordingtotheactualproductionandoperationcharacteristicsandinaccordwiththeregulationsoftherelevantASBE,formulatedcertainspecificaccountingpoliciesandaccountingestimations,whichmainlyreflectedinthefinancialinstruments,withdrawalmethodofthebaddebtprovisionoftheaccountsreceivable,themeasurementoftheinventoryandthedepreciationofthefixedassetsetc.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheGroupareincompliancewithincompliancewiththeAccountingStandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheGroup’sfinancialpositions,businessresultsandcashflowsandotherrelevantinformation.
2.FiscalPeriodThefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl
(1)Businesscombinationsunderthesamecontrol:
Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Forthemergerofenterprisesunderthesamecontrol,iftheconsiderationofthemergingenterpriseisthatitmakespaymentincash,transfersnon-cashassetsorbearitsdebts,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thedifferencebetweentheinitialcostofthelong-termequityinvestmentandthepaymentincash,non-cashassetstransferredaswellasthebookvalueofthedebtsbornebythemergingpartyshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Iftheconsiderationofthemergingenterpriseisthatitissuesequitysecurities,itshall,onthedateofmerger,regardtheshareofthebookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment.Thetotalfacevalueofthestocksissuedshallberegardedasthecapitalstock,whilethedifferencebetweentheinitialcostofthelong-termequityinvestmentandtotalfacevalueofthesharesissuedshalloffsetagainstthecapitalreserve.Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Alldirectcostsforthebusinesscombination,includingexpensesforaudit,evaluatingandlegalservicesshallberecordedintotheprofitsandlossesatthecurrentperiod.Theexpensessuchasthehandlingchargesandcommissionetc,premiumincomeofdeductingtheequitysecurities,andasforthepremiumincomewasinsufficienttodilute,theretainedearningsshallbewrittendown.Owningtothereasonssuchastheadditionalinvestment,fortheequityinvestmentheldbeforeacquiringthe
controlrightofthecombinedparties,theconfirmedrelevantgainsandlosses,othercomprehensiveincomeandthechangesofothernetassetssincethedateoftheearlieronebetweenthedatewhenacquiringtheoriginalequityrightandthedatewhenthecombinepartiesandcombinedoneswereunderthesamecontroltothecombinationdate,shouldberespectivelywrittendownandcomparedwiththebeginningbalanceofretainedearningsorthecurrentgainsandlossesduringthestatementperiod.
(2)BusinesscombinationsnotunderthesamecontrolAbusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombination.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationshallbemeasuredatthefairvalues.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsformstheacquireeasbusinessreputation.Thedirectrelevantexpensesoccurredfromtheenterprisecombinationshouldbeincludedinthecurrentgainsandlosseswhenoccurred.Thecombinationcostsoftheacquirerandtheidentifiablenetassetsobtainedbyitinthecombinationshallbemeasuredaccordingtotheirfairvaluesattheacquiringdate.ThedifferencebetweenthefairvalueoftheassetspaidoutbytheCompanyanditsbookvalueshouldbeincludedinthecurrentgainsandlosses.Thepurchasedatereferstothedatethatthepurchaseracquiresthecontrolrightoftheacquiree.Forthebusinesscombinationsnotunderthesamecontrolrealizedthroughstepbystepmultipletransaction,asfortheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdate,theyshallbere-measuredaccordingtotheirfairvaluesattheacquiringdate;thepositivedifferencebetweentheirfairvaluesandcarryingamountsshallberecordedintotheinvestmentgainsfortheperiodincludingtheacquiringdate.Theequityholedbytheacquireewhichinvolvedwiththeothercomprehensiveincomeandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionandotherrelatedcomprehensivegainsandotherowners’equitieswhichinrelationtotheequityintereststhattheGroupholdsintheacquireebeforetheacquiringdateshouldbetransferredintothecurrentinvestmentincomeontheacquiringdate,exceptfortheothercomprehensiveincomeoccurredfromthere-measurementofthenetprofitsofthedefinedbenefitplansorthechangesofthenetassetsoftheinvestees.
6.MethodsforPreparingConsolidatedFinancialStatementsTheCompanyconfirmstheconsolidatedscopebasedonthecontrolandincludesthesubsidiarieswithactualcontrolrightintotheconsolidatedfinancialstatement.TheconsolidatedfinancialstatementoftheCompanyiscompiledaccordingtotheregulationsofNo.33ofASBE-ConsolidatedFinancialStatementandtherelevantregulationsandasforthewholesignificantcome-and-gobalance,investment,transactionandtheunrealizedprofitsshouldbewrittenoffwhencompilingtheconsolidatedfinancialstatement.Theportionofasubsidiary’sshareholders’equityandtheportionofasubsidiary’snetprofitsandlossesfortheperiodnotheldbytheGrouparerecognizedasminorityinterestsandminorityshareholderprofitsandlossesrespectivelyandpresentedseparatelyundershareholders’equityandnetprofitsintheconsolidationfinancialstatements.Theportionofasubsidiary’snetprofitsandlossesfortheperiodthatbelongtominorityinterestsispresentedastheitemof“minorityshareholderprofitsandlosses”underthebiggeritemofnetprofitsintheconsolidatedfinancialstatements.Wherethelossofasubsidiarysharedbyminorityshareholdersexceedstheportionenjoyedbyminorityshareholdersinthesubsidiary’sopeningowners’equity,minorityinterestsareoffset.TheaccountingpolicyoraccountingperiodofeachsubsidiaryisdifferentfromwhichoftheCompany,which
shallbeadjustedastheCompany;orsubsidiariesshallpreparefinancialstatementagainrequiredbytheCompanywhenpreparingtheconsolidatedfinancialstatements.Asfortheaddedsubsidiarycompanynotcontrolledbythesameenterprisepreparingtheconsolidatedfinancialstatement,shalladjustindividualfinancialstatementbasedonthefairvalueoftheidentifiablenetassetsontheacquisitiondate;asfortheaddedsubsidiarycompaniescontrolledbythesameenterprisepreparingthefinancialstatement,shallnotadjustthefinancialstatementofthesubsidiaries,namelysurvivedbyintegrationasparticipatingintheconsolidationwhenthefinalcontrolpartystartsimplementingcontrolandshouldadjusttheperiod-beginamountoftheconsolidatedbalancesheetandatthesametimeadjusttherelevantitemsofthecomparedstatement.Asforthedisposedsubsidiaries,theoperationresultandthecashflowshouldbeincludedintheconsolidatedincomestatementandtheconsolidatedcashflowbeforethedisposingdate;thedisposedsubsidiariesofthecurrentperiod,shouldnotbeadjustedtheperiod-beginamountoftheconsolidatedbalancesheet.WheretheGrouplossescontrolonitsoriginalsubsidiariesduetodisposalofsomeequityinvestmentsorotherreasons,theresidualequityinterestsarere-measuredaccordingtothefairvalueonthedatewhensuchcontrolceases.Thesummationoftheconsiderationobtainedfromthedisposalofequityinterestsandthefairvalueoftheresidualequityinterests,minustheportionintheoriginalsubsidiary’snetassetsmeasuredonacontinuousbasisfromtheacquisitiondatethatisenjoyablebytheGroupaccordingtotheoriginalshareholdingpercentageinthesubsidiary,isrecordedininvestmentgainsfortheperiodwhentheGroup’scontrolonthesubsidiaryceases.Othercomprehensiveincomesinrelationtotheequityinvestmentandtheotherowners’equitieschangesexceptforthenetgainsandlosses,othercomprehensiveincomeandprofitsdistributionintheoriginalsubsidiaryaretreatedonthesameaccountingbasisastheacquireedirectlydisposestherelevantassetsorliabilities(thatis,exceptforthechangesinthenetliabilitiesorassetswithadefinedbenefitplanresultedfromre-measurementoftheoriginalsubsidiary,therestshallallbetransferredintocurrentinvestmentgains)whensuchcontrolceases.AndsubsequentmeasurementisconductedontheresidualequityinterestsaccordingtotheNo.2AccountingStandardforBusinessEnterprises-Long-termEquityInvestmentsortheNo.22AccountingStandardforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments.Forthedisposalofequityinvestmentbelongstoapackagedeal,shouldbeconsideredasatransactionandconductaccountingtreatment.However,Beforelosingcontrol,everydisposalcostandcorrespondingnetassetsbalanceofsubsidiaryofdisposalinvestmentareconfirmedasothercomprehensiveincomeinconsolidatedfinancialstatements,whichtogethertransferredintothecurrentprofitsandlossesinthelossofcontrol,whentheGrouplosingcontrolonitssubsidiary.Forthedisposaloftheequityinvestmentnotbelongstoapackagedeal,shouldbeexecutedaccountingtreatmentaccordingtotherelevantpoliciesofpartlydisposingtheequityinvestmentofthesubsidiariesunderthesituationnotlosethecontrolrightbeforelosingthecontrolright;whenlosingthecontrolright,theformershouldbeexecutedaccountingtreatmentaccordingtothegeneraldisposingmethodofthedisposalofthesubsidiaries.
7.ClassificationofJointArrangementsandAccountingTreatmentofJointOperationsTheGroupclassifiesjointarrangementsintojointoperationsandjointventures.AjointoperationreferstoajointarrangementwheretheGroupisthejointoperationspartyofthejointarrangementandenjoysassetsandhastobearliabilitiesrelatedtothearrangement.TheCompanyconfirmsthefollowingitemsrelatedtotheinterestsshareamongthejointoperationsandexecutesaccountingtreatmentaccordingtotheregulationsoftherelevantASBE:
(1)Recognizestheassetsthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldassets
accordingtotheGroup’sstakeinthejointoperation;
(2)Recognizestheliabilitiesthatitholdsandbearsinthejointoperationandrecognizesthejointly-heldliabilitiesaccordingtotheGroup’sstakeinthejointoperation;
(3)RecognizestheincomefromsaleoftheGroup’sshareintheoutputofthejointoperation
(4)Recognizestheincomefromsaleofthejointoperation’soutputsaccordingtotheGroup’sstakeinit
(5)RecognizestheexpensesolelyincurredtotheGroupandtheexpenseincurredtothejointoperationaccordingtotheGroup’sstakeinit.
8.RecognitionStandardforCashandCashEquivalentsIntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedforcover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.ForeignCurrencyBusinessesandTranslationofForeignCurrencyFinancialStatements
(1)ForeigncurrencybusinessConcerningtheforeign-currencytransactionsthatoccurred,theforeigncurrencyshallbeconvertedintotherecordingcurrencyaccordingtothemiddlepriceofthemarketexchangeratedisclosedbythePeople’sBankofChinaonthedateofthetransaction.Amongthesaidtransactionsthatoccurred,thoseinvolvingforeignexchangesshallbeconvertedaccordingtotheexchangeratesadoptedintheactualtransactions.Onthebalancesheetdate,theforeign-currencymonetaryassetsandthebalanceoftheliabilityaccountshallbeconvertedintotherecodingcurrencyaccordingtothemiddlepriceofthemarketexchangeratesdisclosedbythePeople’sBankofChinaontheBalanceSheetDate.Thedifferencebetweentherecording-currencyamountconvertedaccordingtotheexchangerateontheBalanceSheetDateandtheoriginalbookrecording-currencyamountshallberecognizedasgains/lossesfromforeignexchange.Andtheexchangegain/losscausedbytheforeign-currencyborrowingsrelatedtopurchasingfixedassetsshallbehandledaccordingtotheprincipleofcapitalizingborrowingexpenses;theexchangegain/lossincurredintheestablishmentperiodshallberecordedintotheestablishmentexpense;othersshallberecordedintothefinancialexpensesforthecurrentperiod.Onthebalancesheetdate,theforeign-currencynon-monetaryitemsmeasuredbyhistoricalcostshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedateofthetransaction,withnochangesintheoriginalrecording-currencyamount;whiletheforeign-currencynon-monetaryitemsmeasuredbyfairvalueshallbeconvertedaccordingtothemiddlepriceofthemarketexchangedisclosedbythePeople’sBankofChinaonthedatewhenthefairvalueisrecognized,andtheexchangegain/losscausedthereofshallberecognizedasthegain/lossfromfairvaluechangesandrecordedintothegain/lossofthecurrentperiod.
(2)TranslationofforeigncurrencyTheassetsandliabilitiesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner’sequityitems,exceptfortheitemsas“undistributedprofits”,otheritemsshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Andtherevenuesandexpensesitemsamongthebalancesheetoftheforeignoperationshallbetranslatedattheapproximateexchangerateofthetransactiondate.Thedifferencecausedfromtheabovetransactionoftheforeigncurrencystatementshouldbelistedintheothercomprehensiveincomeamongtheowners’equities.
10.FinancialInstruments
(1)ClassificationofFinancialInstrumentsTheCompanyclassifiesthefinancialassetswheninitiallyrecognizedintothefollowingthreecategoriesbasedonthebusinessmodelforfinancialassetsmanagementandcharacteristicsofcontractualcashflowoffinancialassets:
financialassetsmeasuredatamortizedcost,financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)andfinancialassetsatfairvaluethroughprofitorlossFinancialliabilitieswereclassifieswheninitiallyrecognizedintofinancialliabilitiesatfairvaluethroughprofitorlossandfinancialliabilitiesmeasuredatamortizedcost.
(2)RecognitionBasisandMeasurementMethodforFinancialInstruments
①FinancialassetsmeasuredatamortizedcostFinancialassetsatamortizedcostincludenotesreceivable,accountsreceivable,otherreceivables,long-termreceivables,andinvestmentindebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.ForaccountsreceivableexcludingsignificantfinancingandaccountsreceivablethattheCompanydecidesnottoconsiderfinancingcomponentslessthanoneyear,theinitialmeasurementshallbemadeatthecontracttransactionprice.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenrecoveredordisposed,thedifferencebetweenthepriceobtainedandthecarryingvalueofthefinancialassetsshallberecordedintothecurrentprofitorloss.
②Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)includeaccountsreceivablefinancingandinvestmentinotherdebtobligationswhichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueexceptforinterestcalculatedwithactualrates,impairmentlossesorgainsandexchangegainsorlossesshallberecordedintoothercomprehensiveincome.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintothecurrentprofitorloss.
③Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)includeinvestmentinotherequityinstruments,etc.whichareinitiallymeasuredatfairvalueandrelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandchangesoffairvalueshallberecordedintoothercomprehensiveincome.Thedividendsobtainedshallberecordedintothecurrentprofitorloss.Whenderecognized,theaccumulatedgainsorlossesoriginallyrecordedintoothercomprehensiveincomeshallbetransferredintoretainedearnings.
④FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialassets,derivativefinancialassetsandothernon-currentfinancialassetswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialassetsshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.
⑤FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludeheld-for-tradingfinancialliabilitiesandderivativefinancialliabilitieswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintothecurrentprofitorloss.Thesubsequentmeasurementofthefinancialliabilitiesshallbeatfairvalueandthechangesoffairvalueshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetween
thecarryingvalueandthepaidconsiderationshallberecordedintothecurrentprofitorloss.
⑥FinancialliabilitiesatamortizedcostFinancialliabilitiesatamortizedcostincludeshort-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayableswhichareinitiallymeasuredatfairvalueandtherelatedtransactioncostshallberecordedintotheinitialrecognizedamount.Theinterestcalculatedwithactualratesfortheholdingperiodshallberecordedintothecurrentprofitorloss.Whenderecognized,thedifferencebetweenthepaidconsiderationandthecarryingvalueofthefinancialliabilitiesshallberecordedintothecurrentprofitorloss.
(3)RecognitionBasisandMeasurementofTransferofFinancialAssetsWheretheCompanyhastransferrednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialassettothetransferee,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallcontinuetorecognizethetransferredfinancialasset.WheretheCompanydoesnottransferorretainnearlyalloftherisksandrewardsrelatedtotheownershipofafinancialasset,itshalldealwithitaccordingtothecircumstancesasfollows,respectively:(1)Ifitgivesupitscontroloverthefinancialasset,itshallstoprecognizingthefinancialassetandseparatelyrecognizetherightsandobligationsgeneratedretainedfromthetransferasassetsorliabilities;(2)Ifitdoesnotgiveupitscontroloverthefinancialasset,itshall,accordingtotheextentofitscontinuousinvolvementinthetransferredfinancialasset,recognizetherelatedfinancialassetandrecognizetherelevantliabilityaccordingly.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueofthetransferredfinancialassetonthederecognitiondate;(2)Thesumofconsiderationreceivedfromthetransferoffinancialassets,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,theentirecarryingvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped,beapportionedaccordingtotheirrespectiverelativefairvalueonthetransferdate,andthedifferencebetweentheamountsofthefollowingtwoitemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:(1)Thecarryingvalueoftheportionwhoserecognitionhasbeenstopped;(2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstopped,andderecognitionamountamongtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheothercomprehensiveincome(thefinancialassetsinvolvetransferareinvestmentsindebtinstrumentsatfairvaluethroughothercomprehensiveincome.
(4)DerecognitionBasisofFinancialLiabilitiesAfinancialliabilityorpartofitcanbederecognizedafteritscurrentobligationhasbeenrelievedinfullorinpart.
(5)RecognitionofFairValueofFinancialAssetsandFinancialLiabilitiesThefairvalueoffinancialinstrumentswithanactivemarketisdeterminedbythequotedpriceintheactivemarket.Forfinancialinstrumentswithoutactivemarket,thefairvalueisdeterminedbyvaluationtechniques.TheCompanyadoptsthevaluationtechniquesapplicabletothecurrentconditionswhicharesupportedbysufficientdataandotherinformationforvaluation,andselectstheinputvaluesconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsinassetorliabilitytransactions,withprioritytoobservableinputvalues.Unobservableinputvaluesareusedonlywhenrelevantobservableinputvaluesarenotavailableorpractical.
(6)Impairmentoffinancialinstrument
①ImpairmentmeasurementandaccountinghandlingoffinancialinstrumentBasedonexpectedcreditloss,theCompanyconductsimpairmenthandlingandconfirmscreditimpairmentlossforfinancialassetswhichismeasuredbyamortizedcost,debtinstrumentinvestmentwhichismeasuredbyfairvalueandwhosechangeiscalculatedintoothercomprehensiveprofits,financialguaranteecontract.Expectedcreditlossreferstoweightedaverageofcreditlossoffinancialinstrumentwhichtakestheriskofcontractbreachoccurrenceastheweight.Creditlossreferstothedifferencebetweenallcontractcashflowwhichisconvertedintocashaccordingtoactualinterestrateandreceivableaccordingtocontractandallcashflowwhichtobechargedasexpected,i.e.currentvalueofallcashshortage.Amongit,asforfinancialassetpurchasedororiginalwhichhashadcreditimpairment,itshouldbeconvertedintocashaccordingactualinterestrateofthisfinancialassetaftercreditadjustment.Lifetimeexpectedcreditlossesrefertothosecausedbypossibledefaultsduringtheentireexpecteddurationofafinancialinstrument.Theexpectedcreditlossesinthenext12monthsreferstothosecausedbythedefaulteventsofthefinancialinstrumentthatmayoccurwithin12months(ortheexpecteddurationiftheexpecteddurationofthefinancialinstrumentislessthan12months)afterthebalancesheetdate,andispartoftheexpectedcreditlossesintheentireduration.Oneachbalancesheetdate,theCompanyrespectivelymeasuredtheexpectedcreditlossesoffinancialinstrumentsindifferentstages.Ifthecreditriskofafinancialinstrumenthashadnosignificantincreasesinceitsinitialrecognition,theinstrumentshallfallinthefirststage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesinthefuture12months.Ifthecreditriskofafinancialinstrumenthashadasignificantincreasesinceitsinitialrecognitionbutnocreditimpairmenthasoccurred,theinstrumentshallfallinthesecondstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Ifthecreditimpairmenthasoccurredsinceitsinitialrecognition,thefinancialinstrumentshallfallinthethirdstage,forwhichtheCompanywouldmeasurethelossreservesaccordingtotheexpectedcreditlossesintheentiredurationoftheinstrument.Asforafinancialinstrumentwithlowcreditrisksonthebalancesheetdate,theCompanymeasuredthelossreservesaccordingtotheexpectedcreditlossesinthefuture12months,assumingthatitscreditriskhashadnosignificantincreasesinceitsinitialrecognition.Forfinancialinstrumentswithlowcreditrisksinstages1and2,theCompanycalculatedtheinterestincomeattheeffectiveinterestrateandonthecarryingamountoftheinstrumentswithoutdeductionsforprovisionsforassetimpairment.Forfinancialinstrumentsinstage3,interestincomewascalculatedattheeffectiveinterestratesandontheamortizedcostbyreducingtheprovisionsforassetimpairmentfromthecarryingamount.Fornotesreceivables,accountsreceivables,andfinancingreceivables,whethertherewasasignificantfinancialcomponentornot,theCompanymeasuredthelossreservesbasedontheexpectedcreditlossesfortheentireduration.A.AccountsreceivableFornotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingwithobjectiveevidenceindicatingimpairmentandthosesuitableforindividualevaluation,theCompanycarriesoutimpairmenttestseparatelytoconfirmexpectedcreditlossandprepareprovisionforimpairmentofsingleitems.Fornotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancing,contractassetsandlong-termreceivableswithoutobjectiveevidenceofimpairment,orasinglefinancialassetwithexpectedcreditlossimpossibletobeassessedatareasonablecost,theCompanydividesthenotesreceivable,accountsreceivable,otherreceivablesandaccountsreceivablefinancingintogroupsaccordingtothecharacteristicsofcreditrisk,andcalculatestheexpectedcreditlossbasedonreceivablegroups.Thebasisforrecognizinggroupsisasfollows:
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Group1ofnotesreceivable | Allcommercialbills | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Group2ofnotesreceivable | Bank’sacceptancebillswithlowcreditrating | |
| Accountsreceivablefinancing | Bank’sacceptancebillswithhighcreditrating | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
| Accountsreceivable-creditriskcharacteristicsgroup | Accountsreceivableportfoliowithcreditperiod | Preparethecomparativelistbetweenagingofaccountsreceivableandexpectedcreditlossrateovertheentirelifeandcalculatetheexpectedcreditlossbyconsultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation.TheCompanytakesagingascreditriskcharacteristicsgroupsandcalculatestheexpectedcreditlossforaccountsreceivable. |
| Accountsreceivable-intercoursefundsamongrelatedpartygroupwithintheconsolidationscope | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossrateovertheentirelife |
Basisforrecognizinggroupsofotherreceivablesisasfollows:
| Item | Recognitionbasis | Methodofmeasuringexpectedcreditlosses |
| Group1ofotherreceivables | Otherreceivablesexcludingthosefromrelatedparties-aginggroup | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
| Group2ofotherreceivables | Relatedpartywithintheconsolidationscope | Consultinghistoricalexperienceincreditlosses,combiningcurrentsituationandpredictionforfutureeconomicsituation,theexpectedcreditlossshallbeaccountedthroughexposureatdefaultandtheexpectedcreditlossratewithinthenext12monthsorovertheentirelife |
11.AccountsReceivableSee“10.FinancialInstruments”.
12.AccountsReceivableFinancingSee“10.FinancialInstruments”.
13.OtherReceivablesSee“10.FinancialInstruments”.
14.Inventory
(1)CategoryofInventoryInventoryreferstotheheld-for-salefinishedproductsorcommodities,goodsinprocess,materialsconsumedintheproductionprocessortheprocessprovidingthelaborserviceetc.Inventoryismainlyincludingtherawmaterials,lowpricedandeasilywornarticles,unfinishedproducts,inventoriesandworkinprocess–outsourcedetc.
(2)PricingmethodPurchasingandstorageofthevariousinventoriesshouldbevaluedaccordingtotheplanedcostandthedispatchbecalculatedaccordingtotheweightedaveragemethod;carriedforwardthecostofthefinishedproductsaccordingtotheactualcostofthecurrentperiodandthesalescostaccordingtotheweightedaveragemethod.
(3)DeterminationbasisofthenetrealizablevalueofinventoryandwithdrawalmethodoftheprovisionforfallingpriceofinventoryAtthebalancesheetdate,inventoriesaremeasuredatthelowerofthecostsandnetrealizablevalue.Whenalltheinventoriesarecheckedroundly,forthosewhichweredestroyed,outdatedinallorinpart,soldataloss,etc,theCompanyshallestimatetheirrecoverablepartofitscostandwithdrawaltheinventoryfallingpricereserveattheyear-end.Wherethecostofthesingleinventoryitemishigherthanthenetrealizablevalue,theinventoryfallingpricereserveshallbewithdrawnandrecordedintoprofitsandlossesofthecurrentperiod.Ofwhich:inthenormalproductionandoperatingprocess,asforthecommoditiesinventorydirectlyforsalessuchasthefinishedproducts,commoditiesandthematerialsforsales,shouldrecognizethenetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceoftheinventoryminusestheestimatedsellingexpensesandtherelevanttaxes;asforthematerialsinventoryneedstobeprocessedinthenormalproductionandoperatingprocess,shouldrecognizeitsnetrealizablevalueaccordingtotheamountoftheestimatedsellingpriceofthefinishedproductsminusesthecostpredictstobeoccurwhentheproductioncompletesandtheestimatedsellingexpensesaswellastherelevanttaxes;onthebalancesheetdate,forthesameinventorywithonepartagreedbythecontractpriceandotherpartsnotbythecontractprice,shouldberespectivelyrecognizedthenetrealizablevalue.Foritemsofinventoriesrelatingtoaproductlinethatareproducedandmarketedinthesamegeographicalarea,havethesameorsimilarendusersorpurposes,andcannotbepracticablyevaluatedseparatelyfromotheritemsinthatproductlineprovisionfordeclineinvalueisdeterminedonanaggregatebasis;forlargequantityandlowvalueitemsofinventories,provisionfordeclineinvalueismadebasedoncategoriesofinventories.
(4)Theperpetualinventorysystemismaintainedforstocksystem.
(5)Amortizationmethodoflow-valueconsumablesandpackagesOnetimeamortizationmethodisadoptedforlow-valueconsumablesandpackages.
15.ContractAssetsContractAssetsmeansthattheCompanyisendowedwiththerighttochargetheconsiderationthroughtransferringanycommodityorservicetotheclient,andsuchrightdependsonotherfactorsexceptthepassingoftime.TheCompany’sunconditionalright(onlydependingonthepassingoftime)ofchargingtheconsiderationfromtheclientshallbeseparatelypresentedasreceivables.TherecognitionmethodandaccountingtreatmentmethodoftheestimatedcreditlossofcontractassetsareconsistentwiththatspecifiedinNotesV.11.
16.ContractCosts
(1)CostsfromAcquiringContractIftheincrementalcostresultingfromtheCompany’sacquiringofcontract(namelycostsmerelyresultingfromtheacquiringofcontract)ispredictedtoberetrieved,itshallberecognizedasanassets,amortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Iftheassets’amortizationperioddoesnotexceedoneyear,itshallbeimmediatelyincludedintothecurrentprofitandloss.OtherexpensesresultingfromtheCompany’sacquiringofcontractshallalsobeincludedintothecurrentprofitandlossunlessitisexplicitlybornebytheclient.
(2)CostsfromExecutingContractTheCompany’scostsfromexecutingcontractisnotcoveredbyotherASBEexceptforRevenueStandards,andwhenthefollowingsituationsaremet,suchcostscanberecognizedasanassets:①thecostsaredirectlyrelatedtoacurrentorpredictedcontract;②thecostsincreasetheCompany’sresourcesappliedtofulfillperformanceobligationsinthefuture;③thecostsarepredictedtoberetrieved.Therecognizedassetsshallbeamortizedbyadoptingthesamebasiswiththerecognitionofcommoditiesorservicerevenuesrelatedtotheassetsandincludedintothecurrentprofitandloss.Ifthebookvalueofcontractcostsishigherthanthedifferenceofthefollowingtwoitems,correspondingdepreciationreservesshallbecountedandwithdrawnanditshallberecognizedastheassetsdepreciationloss:①theresidualconsiderationpredictedtobeacquiredbytransferringcommoditiesrelatedtotheassets;②thecostspredictedtooccurduetothetransferofrelatedcommodities.Ifthedifferencebetween①and②ishigherthanthebookvalueofcontractcostsduetoanychangeinvariousfactorscausingdepreciationinpreviousperiods,itshallberestitutedtothewithdrawnassetsdepreciationreservesandincludedinthecurrentprofitandloss.However,thebookvalueofrestitutedcontractcostsshallnotexceedthebookvalueoftheassetsonthedayofrestitutionbasedonthehypothesisthatdepreciationreservesarenotcountedandwithdrawn.
17.AssetsHeldforSaleTheCompanyrecognizesthecomponents(orthenon-currentassets)whichmeetwiththefollowingconditionsasassetsheldforsale:
(1)Thecomponentsmustbeimmediatelysoldonlyaccordingtotheusualtermsofsellingthiskindofcomponentsunderthecurrentconditions;
(2)TheCompanyhadmadesolutionsondisposingthecomponents(orthenon-currentassets),forexample,theCompanyshouldgaintheapprovalfromtheshareholdersaccordingtotheregulationsandhadacquiredtheapprovedfromtheAnnualGeneralMeetingortherelevantauthorityinstitutions;
(3)TheCompanyhadsignedtheirrevocabletransformationagreementwiththetransferee;
(4)Thetransformationshouldbecompletedwithin1year.
18.Long-termEquityInvestments
(1)JudgmentstandardofjointcontrolandsignificantinfluencesJointcontrol,referstothecontroljointlyownedaccordingtotherelevantagreementonanarrangementbytheCompanyandtherelevantactivitiesofthearrangementshouldbedecidedonlyaftertheparticipantswhichsharethecontrolrightmakeconsensus.SignificantinfluencereferstothepoweroftheCompanywhichcouldanticipateinthefinanceandtheoperationpolicesoftheinvestees,butcouldnotcontrolorjointlycontroltheformulationofthepolicieswiththeotherparties.
(2)RecognitionforinitialinvestmentcostTheinitialinvestmentcostofthelong-termequityinvestmentshallberecognizedbyadoptingthefollowingwaysinaccordancewithdifferentmethodsofacquisition:
1)Asforthoseformsunderthesamecontroloftheenterprisecombine,ifthecombinepartytakesthecashpayment,non-cashassetstransformation,liabilitiesassumptionorequitysecuritiesissuanceasthecombinationconsideration,shouldtakethesharesofthebookvaluebytheultimatecontrolpartyintheconsolidatefinancialstatementoftheowners’equitiesofthecombinersacquiredonthemergerdateastheinitialinvestmentcost.Thedifferencebetweentheinitialinvestmentcostandthebookvalueofthepaidcombinationconsiderationorthetotalamountoftheissuedsharesofthelong-termequityinvestmentshouldbeadjustedthecapitalreserve;Ifthecapitalreserveisinsufficienttodilute,theretainedearningsshallbeadjusted.Toincludeeachdirectrelevantexpenseoccurredwhenexecutingtheenterprisemergerintothecurrentgainsandlosses;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
2)Asforlong-termequityinvestmentacquiredthroughthemergerofenterprisesnotunderthesamecontrol,itsinitialinvestmentcostshallregardasthecombinationcostcalculatedbythefairvalueoftheassets,equityinstrumentissuedandliabilitiesincurredorundertakenonthepurchasedateaddingthedirectcostrelatedwiththeacquisition.Theidentifiableassetsofthecombinedpartyandtheliabilities(includingcontingentliability)undertakenonthecombiningdateshallbemeasuredatthefairvaluewithoutconsideringtheamountofminorityinterest.Theacquirershallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasbusinessreputation.Theacquirershallrecordthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheconsolidatedincomestatementdirectly.Theagentexpenseandotherrelevantmanagementexpensessuchastheaudit,legalserviceandevaluationconsultationoccursfromtheenterprisemerger,shouldbeincludedinthecurrentgainsandlosseswhenoccur;whilethehandlingchargesandcommissionoccursfromtheissuingtheequitysecuritiesorthebondsfortheenterprisemergershouldbeincludedintheinitialmeasurementamountoftheshareholders’equitiesortheliabilities.
3)Long-termequityinvestmentobtainedbyothermeansTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.Theinitialcostofalong-termequityinvestmentofaninvestorshallbethevaluestipulatedintheinvestmentcontractoragreement,theunfairvaluestipulatedinthecontractoragreementshallbemeasuredatfairvalue.Asforlong-terminvestmentobtainedbytheexchangeofnon-monetaryassets,whereitiscommercialinnature,
thefairvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived;whereitisnotcommercialinnature,thebookvalueoftheassetssurrenderedshallberecognizedastheinitialcostofthelong-termequityinvestmentreceived.Theinitialcostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatfairvalueoflong-termequityinvestment.
(3)Subsequentmeasurementandrecognitionofprofitsandlosses
1)AninvestmentinthesubsidiarycompanyshallbemeasuredbyemployingthecostmethodWheretheCompanyhold,andisabletodoequityinvestmentwithcontroloveraninvestedentity,theinvestedentityshallbeitssubsidiarycompany.WheretheCompanyholdsthesharesofanentityover50%,or,whiletheCompanyholdsthesharesofanentitybelow50%,buthasarealcontroltothesaidentity,thenthesaidentityshallbeitssubsidiarycompany.
2)AninvestmentinthejointenterpriseorassociatedenterpriseshallbemeasuredbyemployingtheequitymethodWheretheCompanyhold,andisabletodoequityinvestmentwithjointcontrolwithotherpartiesoveraninvestedentity,theinvestedentityshallbeitsjointenterprise.WheretheCompanyhold,andisabletohaveequityinvestmentwithsignificantinfluencesonaninvestedentity,theinvestedentityshallbeitsassociatedentity.AftertheCompanyacquiredthelong-termequityinvestment,shouldrespectivelyrecognizeinvestmentincomeandothercomprehensiveincomeaccordingtothenetgainsandlossesaswellastheportionofothercomprehensiveincomewhichshouldbeenjoyedorbeshared,andatthesametimeadjustthebookvalueofthelong-termequityinvestment;correspondingreducethebookvalueofthelong-termequityinvestmentaccordingtoprofitswhichbedeclaredtodistributebytheinvesteesortheportionofthecalculationofcashdividendswhichshouldbeenjoyed;fortheotherchangesexceptforthenetgainsandlosses,othercomprehensiveincomeandtheowners’equityexceptfortheprofitsdistributionoftheinvestees,shouldadjustthebookvalueofthelong-termequityinvestmentaswellasincludeintheowners’equity.Theinvestingenterpriseshall,onthegroundofthefairvalueofallidentifiableassetsoftheinvestedentitywhenitobtainstheinvestment,recognizetheattributableshareofthenetprofitsandlossesoftheinvestedentityafteritadjuststhenetprofitsoftheinvestedentity.IftheaccountingpolicyadoptedbytheinvesteesisnotaccordwiththatoftheCompany,shouldbeadjustedaccordingtotheaccountingpoliciesoftheCompanyandthefinancialstatementoftheinvesteesduringtheaccountingperiodandaccordingwhichtorecognizetheinvestmentincomeaswellasothercomprehensiveincome.ForthetransactionhappenedbetweentheCompanyandassociatedenterprisesaswellasjointventures,iftheassetslaunchedorsoldnotformintobusiness,theportionoftheunrealizedgainsandlossesoftheinternaltransaction,whichbelongstotheCompanyaccordingtothecalculationoftheenjoyedproportion,shouldrecognizetheinvestmentgainsandlossesonthebasis.ButthelossesoftheunrealizedinternaltransactionhappenedbetweentheCompanyandtheinvesteeswhichbelongstotheimpairmentlossesofthetransferredassets,shouldnotbeneutralized.TheCompanyshallrecognizethenetlossesoftheinvestedenterpriseaccordingtothefollowingsequence:firstofall,towritedownthebookvalueofthelong-termequityinvestment.Secondly,ifthebookvalueofthelong-termequityinvestmentisinsufficientforwrittendown,shouldbecontinuedtorecognizedtheinvestmentlosseslimitedtothebookvalueofotherlong-termequitywhichformsofthenetinvestmentoftheinvesteesandtowrittendownthebookvalueofthelong-termaccountsreceivableetc.Lastly,throughtheabovehandling,forthoseshouldstillundertaketheadditionalobligationsaccordingtotheinvestmentcontractsortheagreements,itshall
berecognizedastheestimatedliabilitiesinaccordancewiththeestimateddutiesandthenrecordedintoinvestmentlossesatcurrentperiod.Iftheinvestedentityrealizesanynetprofitslater,theCompanyshall,aftertheamountofitsattributableshareofprofitsoffsetsagainstitsattributableshareoftheun-recognizedlosses,resumerecognizingitsattributableshareofprofits.Inthepreparationforthefinancialstatements,thebalanceexistedbetweenthelong-termequityinvestmentincreasedbyacquiringsharesofminorityinterestandtheattributablenetassetsonthesubsidiarycalculatedbytheincreasedsharesheldsincethepurchasedate(orcombinationdate),thecapitalreservesshallbeadjusted,ifthecapitalreservesarenotsufficienttooffset,theretainedprofitsshallbeadjusted;theCompanydisposedpartofthelong-termequityinvestmentonsubsidiarieswithoutlosingitscontrollingrightonthem,thebalancebetweenthedisposedpriceandattributablenetassetsofsubsidiariesbydisposingthelong-termequityinvestmentshallberecordedintoowners’equity.Forotherwaysondisposaloflong-termequityinvestment,thebalancebetweenthebookvalueofthedisposedequityanditsactualpaymentgainedshallberecordedintocurrentprofitsandlosses.Forthelong-termequityinvestmentmeasuredbyadoptingequitymethod,iftheremainedequityafterdisposalstilladoptstheequitymethodformeasurement,theothercomprehensiveincomeoriginallyrecordedintoowners’equityshouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesaccordingtothecorrespondingproportion.Theowners’equityrecognizedowningtothechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentgainsandlossesaccordingtotheproportion.Forthelong-termequityinvestmentwhichadoptsthecostmethodofmeasurement,iftheremainedequitystilladoptthecostmethod,theothercomprehensiveincomerecognizedowningtoadoptingtheequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforeacquiringthecontroloftheinvestees,shouldadoptthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteesandshouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion;thechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestmentaswellastheremainedequityafterdisposalcouldexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetomeasurebyequitymethodwhencompilingtheindividualfinancialstatementandshouldadjustthemeasurementoftheremainedequitytoequitymethodasadoptedsincethetimeacquired;iftheremainedequityafterdisposalcouldnotexecutejointcontrolorsignificantinfluencesontheinvestees,shouldchangetheaccountingdisposalaccordingtotherelevantregulationsoftherecognitionandmeasurementstandardsoffinancialinstrument,anditsdifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.FortheothercomprehensiveincomerecognizedbyadoptingequitymethodformeasurementortherecognitionandmeasurementstandardsoffinancialinstrumentbeforetheCompanyacquiredthecontroloftheinvestees,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenlosethecontrolofthem,whilethechangesoftheotherowners’equityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionamongthenetassetsoftheinvesteeswhichrecognizedbyadoptingtheequitymethodformeasurement,shouldbecarriedforwardintothecurrentgainsandlossesaccordingtotheproportion.Ofwhich,forthedisposedremainedequitywhichadoptedtheequitymethodformeasurement,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardaccordingtotheproportion;forthedisposedremainedequitywhichchangedtoexecutetheaccountingdisposalaccordingto
therecognitionandmeasurementstandardsoffinancialinstrument,theothercomprehensiveincomeandtheotherowners’equityshouldbecarriedforwardinfullamount.ForthosetheCompanylostthecontroloftheinvesteesbydisposingpartoftheequityinvestment,thedisposedremainedequityshouldchangetocalculateaccordingtotherecognitionandmeasurementstandardsoffinancialinstrument,anddifferencebetweenthefairvalueandbookvalueonthedatelosethecontrolrightshouldbeincludedinthecurrentgainsandlosses.Fortheothercomprehensiveincomerecognizedfromtheoriginalequityinvestmentbyadoptingtheequitymethod,shouldexecutetheaccountingdisposalbyadoptingthesamebasisoftheaccountingdisposaloftherelevantassetsorliabilitiesdirectlydisposedbytheinvesteeswhenterminatetheequitymethodformeasurement,whilefortheowners’equityrecognizedowningtothechangesoftheotherowner’sequityexceptforthenetgainsandlosses,othercomprehensiveincomeandtheprofitsdistributionoftheinvestees,shouldbetransferredintothecurrentinvestmentincomewithfullamountwhenterminateadoptingtheequitymethod.
19.InvestmentRealEstateMeasurementmodeofinvestmentrealestate:
MeasurementofcostmethodDepreciationoramortizationmethodTheinvestmentrealestateshallbemeasuredatitscost.Ofwhich,thecostofaninvestmentrealestatebyacquisitionconsistsoftheacquisitionprice,relevanttaxes,andotherexpensedirectlyrelegatedtotheasset;thecostofaself-builtinvestmentrealestatecomposesofthenecessaryexpensesforbuildingtheassettothehopedconditionforuse.Theinvestmentrealestateinvestedbyinvestorsshallberecordedatthevaluestipulatedintheinvestmentcontractsoragreements,buttheunfairvalueappointedinthecontractoragreementshallbeenteredintotheaccountbookatthefairvalue.Asforwithdrawalbasisofprovisionforimpairmentofinvestmentrealestates,pleaserefertowithdrawalmethodforprovisionforimpairmentoffixedassets.
20.FixedAssets
(1)RecognitionConditionsFixedassetsreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:(a)theyareheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;and(b)theirusefullifeisinexcessofonefiscalyear.ThefixedassetsareonlyrecognizedwhentherelevanteconomicbenefitsprobablyflowintheCompanyanditscostcouldbereliablemeasured.
(2)DepreciationMethod
| Categoryoffixedassets | Method | Usefullife | Annualdeprecation |
| Housingandbuilding | Averagemethodofusefullife | 20-40years | 2.50%-5% |
| Machineryequipment | Averagemethodofusefullife | 6-15years | 6.67%-16.67% |
| Transportationequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
| Otherequipment | Averagemethodofusefullife | 5-10years | 10%-20% |
(3)RecognitionBasis,PricingandDepreciationMethodofFixedAssetsbyFinanceLease
TheCompanyrecognizesthosemeetwiththefollowingoneorcertainstandardsasthefixedassetsbyfinancelease:
1)Theleasingcontracthadagreedthat(ormadethereasonablejudgmentaccordingtotherelevantconditionsontheleasestartingdate)whentheleasetermexpires,theownershipofleasingthefixedassetscouldbetransferredtotheCompany;
2)TheCompanyownsthechoosingrightforpurchasingandleasingthefixedassets,withthesetpurchasepricewhichisestimatedfarlowerthanthefairvalueofthefixedassetsbyfinanceleasewhenexecutingthechoosingright,sotheCompanycouldexecutethechoosingrightreasonablyontheleasestartingdate;
3)Eveniftheownershipofthefixedassetsnotbetransferred,theleaseperiodisof75%oraboveoftheusefullifeoftheleasefixedassets;
4)ThecurrentvalueoftheminimumleasepaymentontheleasestartingdateoftheCompanyisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;thecurrentvalueoftheminimumleasereceiptsontheleasestartingdateoftheleaserisequalto90%oraboveofthefairvalueoftheleasefixedassetsontheleasestartingdate;
5)ThenatureoftheleaseassetsisspecialthatonlytheCompanycoulduseitifnotexecutelargetransformation.Thefixedassetsbyfinanceleaseshouldtaketheloweronebetweenthefairvalueoftheleasingassetsandthecurrentvalueoftheminimumleasepaymentontheleasestartingdateastheentryvalue.Asfortheminimumleasepaymentwhichberegardedastheentryvalueofthelong-termaccountspayable,itsdifferenceshouldberegardedastheunrecognizedfinancingexpense.Fortheinitialdirectexpensesoccurintheleasenegotiationsandthesigningprocessoftheleasecontractsthatattributetothehandlingexpenses,counselfees,travelexpensesandstamptaxesoftheleaseitems,shouldbeincludedinthecharter-inassetsvalue.Theunrecognizedfinancingexpensesshouldbeamortizedbyadoptingtheactualinterestrateduringtheperiodoftheleaseterm.Thefixedassetsbyfinanceleaseshalladoptthesamedepreciationpolicyforself-ownedfixedassets.Ifitisreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciatedovertheshorteroneoftheleasetermoritsusefullife
21.ConstructioninProgress
(1)ValuationoftheprogressinconstructionConstructioninprogressshallbemeasuredatactualcost.Self-operatingprojectsshallbemeasuredatdirectmaterials,directwagesanddirectconstructionfees;constructioncontractshallbemeasuredatprojectpricepayable;projectcostforplantengineeringshallberecognizedatvalueofequipmentsinstalled,costofinstallation,trailrunofprojects.Costsofconstructioninprocessalsoincludeborrowingcostsandexchangegainsandlosses,whichshouldbecapitalized.
(2)StandardizationonconstructioninprocesstransferredintofixedassetsandtimepointTheconstructioninprocess,ofwhichthefixedassetsreachtothepredictedconditionforuse,shallcarryforwardfixedassetsonschedule.Theonethathasnotauditedthefinalaccountingshallrecognizethecostandmakedepreciationinlinewithvaluationvalue.Theconstructioninprocessshalladjusttheoriginalvaluationvalueatitshistoricalcostbutnotadjustthedepreciationthathasbeenmadeafterauditingthefinalaccounting.
22.BorrowingCosts
(1)RecognitionprincipleofcapitalizationofborrowingcostsTheborrowingcostsshallincludetheinterestonborrowings,amortizationofdiscountsorpremiumson
borrowings,ancillaryexpenses,andexchangebalanceonforeigncurrencyborrowings.Wheretheborrowingcostsoccurredbelongtospecificallyborrowedloanorgeneralborrowingusedfortheacquisitionandconstructionofinvestmentrealestatesandinventoriesoveroneyear(includingoneyear)shallbecapitalized,andrecordintorelevantassetscost.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingthreerequirements:(1)Theassetdisbursementshavealreadyincurred;(2)Theborrowingcostshavealreadyincurred;and(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.
(2)TheperiodofcapitalizationofborrowingcostsTheborrowingcostsarisingfromacquisitionandconstructionoffixedassets,investmentrealestatesandinventories,iftheymeettheabove-mentionedcapitalizationconditions,thecapitalizationoftheborrowingcostsshallbemeasuredintoassetcostbeforesuchassetsreachtotheintendeduseorsale,Whereacquisitionandconstructionoffixedassets,investmentrealestatesandinventoriesisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended,andrecordedintothecurrentexpense,tilltheacquisitionandconstructionoftheassetsrestarts.Whenthequalifiedassetisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased,theborrowingcostsoccurredlatershallbeincludedintothefinancialexpensedirectlyatthecurrentperiod.
(3)MeasurementmethodofcapitalizationamountofborrowingcostsAsforspecificallyborrowedloansfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theto-be-capitalizedamountofinterestsshallbedeterminedinlightoftheactualcostincurredofthespeciallyborrowedloanatthepresentperiodminustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorasatemporaryinvestment.Whereageneralborrowingisusedfortheacquisitionandconstructionorproductionofassetseligibleforcapitalization,theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.
23.IntangibleAssets
(1)PricingMethod,ServiceLife,andImpairmentTest
(1)PricingmethodofintangibleassetsIntangibleassetspurchasedshouldtaketheactualpaymentandtherelevantotherexpensesastheactualcost.Fortheintangibleassetsinvestedbytheinvestorsshouldberecognizedtheactualcostaccordingtothevalueoftheinvestmentcontractsoragreements,however,forthevalueofthecontractsoragreementsisnotfair,theactualcostshouldberecognizedaccordingtothefairvalue.Fortheintangibleassetsacquiresfromtheexchangeofthenon-currencyassets,ifownthecommercialnature,shouldberecordedaccordingtothefairvalueoftheswap-outassets;forthosenotownthecommercialnature,shouldberecordedaccordingtothebookvalueoftheswap-outassets.Fortheintangibleassetsacquiresfromthedebtsreorganizationshouldberecognizedbythefairvalue.
(2)AmortizationmethodandtermofintangibleassetsAsfortheintangibleassetswithlimitedservicelife,whichareamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod,shallberecordedintothecurrentprofitsandlosses.TheCompanyshall,atleastattheendofeachyear,checktheservicelifeandtheamortizationmethodofintangibleassetswith
limitedservicelife.Whentheservicelifeandtheamortizationmethodofintangibleassetsaredifferentfromthosebefore,theyearsandmethodoftheamortizationshallbechanged.Intangibleassetswithuncertainservicelifemaynotbeamortized.However,theCompanyshallchecktheservicelifeofintangibleassetswithuncertainservicelifeduringeachaccountingperiod.Wherethereareevidencestoprovetheintangibleassetshavelimitedservicelife,itshallbeestimatedofitsservicelife,andbeamortizedaccordingtotheabovemethodmentioned.TherightstouselandoftheCompanyshallbeamortizedaccordingtotherestservicelife.
(2)AccountingPolicesofInternalR&DCostsTheinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchphaseanddevelopmentphase:theterm“research”referstothecreativeandplannedinvestigationtoacquireandunderstandnewscientificortechnologicalknowledge;theterm“development”referstotheapplicationofresearchachievementsandotherknowledgetoacertainplanordesign,priortothecommercialproductionoruse,soastoproduceanynewmaterial,deviceorproduct,orsubstantiallyimprovedmaterial,deviceandproduct.TheCompanycollectsthecostsofthecorrespondingphasesaccordingtotheabovestandardofclassifyingtheresearchphaseandthedevelopmentphase.Theresearchexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallberecordedintotheprofitorlossforthecurrentperiod.Thedevelopmentcostsforitsinternalresearchanddevelopmentprojectsofanenterprisemaybecapitalizedwhentheysatisfythefollowingconditionssimultaneously:itisfeasibletechnicallytofinishintangibleassetsforuseorsale;itisintendedtofinishanduseorselltheintangibleassets;theusefulnessofmethodsforintangibleassetstogenerateeconomicbenefitsshallbeproved,includingbeingabletoprovethatthereisapotentialmarketfortheproductsmanufacturedbyapplyingtheintangibleassetsorthereisapotentialmarketfortheintangibleassetsitselfortheintangibleassetswillbeusedinternally;itisabletofinishthedevelopmentoftheintangibleassets,andabletouseorselltheintangibleassets,withthesupportofsufficienttechnologies,financialresourcesandotherresources;thedevelopmentcostsoftheintangibleassetscanbereliablymeasured.
24.ImpairmentofLong-termAssetsFornon-currentfinancialAssetsoffixedAssets,projectsunderconstruction,intangibleAssetswithlimitedservicelife,investingrealestatewithcostmodel,long-termequityinvestmentofsubsidiaries,cooperativeenterprisesandjointventures,theCompanyshouldjudgewhetherdecreaseinvalueexistsonthedateofbalancesheet.Recoverableamountsshouldbetestedfordecreaseinvalueifitexists.OtherintangibleAssetsofreputationanduncertainservicelifeandothernon-accessibleintangibleassetsshouldbetestedfordecreaseinvaluenomatterwhetheritexists.Iftherecoverableamountislessthanbookvalueinimpairmenttestresults,theprovisionforimpairmentofdifferencesshouldincludeinimpairmentloss.Recoverableamountswouldbethehigherofnetvalueofassetfairvaluedeductingdisposalchargesorpresentvalueofpredictedcashflow.Assetfairvalueshouldbedeterminedaccordingtonegotiatedsalespriceoffairtrade.Ifnosalesagreementexistsbutwithassetactivemarket,fairvalueshouldbedeterminedaccordingtotheBuyer’spriceoftheasset.Ifnosalesagreementorassetactivemarketexists,assetfairvaluecouldbeacquiredonthebasisofbestinformationavailable.Disposalexpensesincludelegalfees,taxes,cartageorotherdirectexpensesofmerchantableAssetsrelatedtoassetdisposal.PresentvalueofpredictedassetcashflowshouldbedeterminedbytheproperdiscountrateaccordingtoAssetsinserviceandpredictedcashflowoffinaldisposal.AssetdepreciationreservesshouldbecalculatedonthebasisofsingleAssets.IfitisdifficulttopredicttherecoverableamountsforsingleAssets,recoverableamountsshouldbedeterminedaccordingtothebelongingassetgroup.Assetgroupistheminimumassetcombinationproducingcash
flowindependently.Inimpairmenttest,bookvalueofthebusinessreputationinfinancialreportshouldbesharedtobeneficialassetgroupandassetgroupcombinationincollaborationofbusinessmerger.Itisshowninthetestthatifrecoverableamountsofsharedbusinessreputationassetgrouporassetgroupcombinationarelowerthanbookvalue,itshoulddeterminetheimpairmentloss.Impairmentlossamountshouldfirstlybedeductedandsharedtothebookvalueofbusinessreputationofassetgrouporassetgroupcombination,thendeductbookvalueofallassetsaccordingtoproportionsofotherbookvalueofaboveassetsinassetgrouporassetgroupcombinationexceptbusinessreputation.Aftertheassetimpairmentlossisdetermined,recoverablevalueamountswouldnotbereturnedinfuture.
25.Long-termDeferredExpensesLong-termdeferredexpansesoftheCompanyshallberecordedinlightoftheactualexpenditure,andamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortizedvalueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
26.ContractLiabilitiesContractliabilitiesrefertotheCompany’sobligationsintransferringcommoditiesorservicestotheclientforthereceivedorpredictedconsideration.Contractassetsandcontractliabilitiesunderthesamecontractshallbepresentedbasedonthenetamount.
27.EmployeeBenefits
(1)AccountingTreatmentofShort-termCompensationShort-termcompensationmainlyincludingsalary,bonus,allowancesandsubsidies,employeeservicesandbenefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housingfund,laborunionexpenditureandpersonneleducationfund,non-monetarybenefitsetc.Theshort-termcompensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheservicefortheCompanyshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Ofwhichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)AccountingTreatmentoftheWelfareafterDemissionTheCompanyclassifiesthewelfareplansafterdemissionintodefinedcontributionplansanddefinedbenefitplans.WelfareplansafterdemissionreferstotheagreementonthewelfareafterdemissionreachesbetweentheCompanyandtheemployees,ortheregulationsormethodsformulatedbytheCompanyforprovidingthewelfareafterdemissionfortheemployees.Ofwhich,definedcontributionplansreferstothewelfareplansafterdemissionthattheCompanynomoreundertakethefurtherpaymentobligationsafterthepaymentofthefixedexpensesfortheindependentfunds;definedbenefitplans,referstothewelfareplansafterdemissionexceptforthedefinedcontributionplans.DefinedcontributionplansDuringtheaccountingperiodthattheCompanyprovidingtheservicefortheemployees,theCompanyshouldrecognizetheliabilitiesaccordingtothedepositedamountcalculatedbydefinedcontributionplans,andshouldbeincludedinthecurrentgainsandlossesortherelevantassetscost.
(3)AccountingTreatmentoftheDemissionWelfareTheCompanyshouldrecognizethepayrollpaymentliabilitiesoccurfromthedemissionwelfareaccordingtotheearlierdatebetweenthefollowingtwoconditionsandincludewhichinthecurrentgainsandlosseswhenprovidingthedemissionwelfarefortheemployees:theCompanycouldnotunilaterallywithdrawthedemissionwelfareowningtotherelieveplansofthelaborrelationshiporreduction;whentheCompanyrecognizingthecostsorexpensesrelatedtothereorganizationinvolveswiththedemissionwelfarepayments.
28.LeaseLiabilitiesOnthecommencementdateoftheleaseterm,theCompanyrecognizesthepresentvalueofunpaidleasepaymentsasleaseliabilities.Leasepaymentsinclude:fixedpaymentandsubstantialfixedpayment,andtherelevantamountaftertheleaseincentive(ifany)isdeducted;variableleasepaymentsthatdependonindexationorratio,whicharedeterminedaccordingtotheindexationorratioonthecommencementdateoftheleasetermintheinitialmeasurement;exercisepriceofthepurchasedoption,providedthatthelesseereasonablydeterminesthattheoptionwillbeexercised;theamounttobepaidfortheexerciseoftheleaseterminationoptions,providedthattheleasetermreflectsthatthelesseewillexercisetheoptionstoterminatethelease;andestimatedpaymentsduetotheguaranteedresidualvalueprovidedbythelessee.TheCompanyusestheinterestrateimplicitinleaseastherateofdiscountwhencalculatingthepresentvalueoftheleasepayments.Theincrementallendingrateofthelesseewillbeusedastherateofdiscount,iftheinterestrateimplicitinleasecannotbedetermined.TheCompanycalculatestheinterestchargeoftheleaseliabilitiesineachperiodoftheleasetermatafixedperiodicinterestrateandincludesitintheprofitorlossofthecurrentperiod,unlesssuchinterestchargeisstipulatedtobeincludedintheunderlyingassetcosts.Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilitiesshouldbeincludedintheprofitorlossofthecurrentperiodwhentheyareactuallyincurred,unlesssuchpaymentsarestipulatedtobeincludedintheunderlyingassetcosts.TheCompanywillre-calculatetheleaseliabilitiesusingthepresentvalueofthechangedleasepayments,ifthesubstantialfixedpayment,theestimatedpaymentsduetotheguaranteedresidualvalue,theindexorrateusedtodeterminetheleasepayments,ortheassessmentresultofthecalloption,therenewaloption,ortheterminationoption,ortheactualexercisechanges,afterthecommencementdateoftheleaseterm.
29.Provisions
(1)CriteriaofprovisionsOnlyiftheobligationpertinenttoacontingenciesshallberecognizedasanestimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultofperformanceoftheobligation;
3)Theamountoftheobligationcanbemeasuredinareliableway.
(2)MeasurementofprovisionsTheCompanyshallmeasuretheprovisionsinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.
TheCompanyshallcheckthebookvalueoftheprovisionsontheBalanceSheetDate.Ifthereisanyconclusiveevidenceprovingthatthesaidbookvaluecan’ttrulyreflectthecurrentbestestimate,theCompanyshall,subjecttochange,makeadjustmenttocarryingvaluetoreflectthecurrentbestestimate.
30.RevenueAccountingpoliciesforrecognitionandmeasurementofrevenue:
WhentheCompanyfulfillsitsdueperformanceobligations(namelywhentheclientobtainsthecontroloverrelatedcommoditiesorservices),revenuesshallberecognizedbasedontheobligation’samortizedtransactionprice.PerformanceObligationreferstotheCompany’spromiseoftransferringcommoditiesorservicesthatcanbeclearlydefinedtotheclient.TransactionPricereferstotheconsiderationamountdulychargedbytheCompanyfortransferringcommoditiesorservicestotheclient,excludinganyamountchargedbythethirdpartyandanyamountpredictedtobereturnedtotheclient.ControlOverRelevantCommoditiesmeansthattheuseofcommoditiescanbecontrolledandalmostalleconomicinterestscanbeobtained.Onthecontractcommencementday,theCompanyshallevaluatethecontract,recognizeindividualperformanceobligationandconfirmthatindividualperformanceobligationisfulfilledinacertainperiod.Whenoneofthefollowingconditionsismet,suchperformanceobligationshallbedeemedasfulfilledinacertainperiod,andtheCompanyshallrecognizeitasrevenuewithinacertainperiodaccordingtotheperformanceschedule:(1)theclientobtainsandconsumestheeconomicinterestsresultingfromtheCompany’sperformanceofcontractwhileperformingthecontract;(2)theclientisabletocontrolthecommoditiesunderconstructionduringtheperformance;(3)commoditiesproducedbytheCompanyduringtheperformancepossesstheirreplaceablepurpose,andtheCompanyhastherighttochargeallfinishedpartsduringthecontractperiod;otherwise,theCompanyshallrecognizetherevenuewhentheclientobtainsthecontroloverrelevantcommoditiesorservices.TheCompanyshalladopttheInputMethodtodeterminethePerformanceSchedule.Namely,thePerformanceScheduleshallbedeterminedaccordingtotheCompany’sinputforfulfillingperformanceobligations.WhenthePerformanceSchedulecannotbereasonablydeterminedandallresultingcostsarepredictedtobecompensated,theCompanyshallrecognizetherevenuebasedontheresultingcostamounttillthePerformanceSchedulecanbereasonablydetermined.Whenthecontractinvolvestwoormorethantwoperformanceobligations,thetransactionpriceshallbeamortizedtoeachsingleperformanceobligationonthecontractcommencementdayaccordingtotherelativeproportionoftheindependentsellingpriceofcommoditiesorservicesundereachsingleperformanceobligation.Ifanysolidevidenceprovesthatthecontractdiscountorvariableconsiderationonlyrelatestooneormorethanone(notall)performanceobligationunderthecontract,theCompanyshallamortizethecontractdiscountorvariableconsiderationtooneormorethanonerelatedperformanceobligations.IndependentsellingpricereferstothepriceadoptedbytheCompanytoindependentlysellcommoditiesorservicestotheclient.However,independentsellingpricecannotbedirectlyobserved.TheCompanyshallestimatetheindependentsellingpricebycomprehensivelyconsideringallrelatedinformationthatcanbereasonablyobtainedandmaximallyadoptingtheobservableinputvalue.VariableConsiderationIfanyvariableconsiderationexistsinthecontract,theCompanyshalldeterminetheoptimalestimationofthevariableconsiderationbasedontheexpectedvaluesorthemostpossibleamount.Thevariableconsideration’stransactionpriceshallbeincludedwithoutexceedingthetotalrevenueamountrecognizedwithouttheriskofsignificantrestitutionwhenalluncertaintiesareeliminated.Oneachbalancesheetday,theCompanyshallre-estimatethevariableconsiderationamounttobeincludedinthetransactionprice.
ConsiderationPayabletotheClientIfanyconsiderationpayabletotheclientexistsinthecontract,theCompanyshallusesuchconsiderationtooffsetthetransactionpriceunlesssuchconsiderationispaidforacquiringotherclearly-definedcommoditiesorservicesfromtheclient,andwritedownthecurrentrevenueatthelatertimebetweenthetimeofrecognizingrelevantrevenuesandthetimeofpaying(orpromisingthepayment)theconsiderationtotheclient.SaleswiththeQualityAssuranceForsaleswiththeQualityAssurance,iftheQualityAssuranceinvolvesanotherseparateserviceexceptfortheguaranteeofallsoldcommoditiesorservicesmeetingallestablishedstandards,theQualityAssuranceshallconstituteasinglePerformanceObligation;otherwise,theCompanyshallmakecorrespondingaccountingtreatmenttotheQualityAssuranceaccordingtoASBENo.13--Contingency.MainResponsibilityPerson/AgentAccordingtowhetherthecontrolovercommoditiesorservicesisobtainedbeforetheyaretransferredtotheclient,theCompanycanjudgewhetheritisMainResponsibilityPersonorAgentbasedonitsstatusduringthetransaction.IftheCompanycancontrolcommoditiesorservicesbeforetheyaretransferredtotheclient,theCompanyshallbeMainResponsibilityPerson,andrevenuesshallberecognizedaccordingtothetotalconsiderationamountreceivedortobereceived;otherwise,theCompanyshallbeAgent,andrevenuesshallberecognizedaccordingtothecommissionorservicefeespredictedtobedulycharged.However,suchamountshallbedeterminedbasedonthenetamountafterdeductingotheramountspayabletootherrelatedpartiesfromthetotalconsiderationreceivedortobedulyreceivedorthefixedcommissionamountorproportion.SpecificmethodsThespecificmethodsoftheCompany'srevenuerecognitionareasfollows:
ThesalecontractbetweentheCompanyanditscustomersusuallycontainsonlytheperformanceobligationforthetransferofgoods,whichissatisfiedatapointintime.Thefollowingrequirementsmustbemettoconfirmtherevenueofdomesticproducts:TheCompanyhasdeliveredthegoodstothecustomerinaccordancewiththecontractandthecustomerhasacceptedthegoods.Thepaymenthasbeenrecoveredorthereceiptvoucherhasbeenobtained,andtherelevanteconomicbenefitsarelikelytoflowin.Thecustomerhasobtainedcontroloftherelevantgoods.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.Thefollowingrequirementsmustbemettoconfirmtherevenueofexportproducts:TheCompanyhasdeclaredtheproductsinaccordancewiththecontract,obtainedthebillsoflading,andreceivedthepaymentorobtainedthereceiptvoucherandtherelatedeconomicbenefitsarelikelytoflowin.Themainrisksandrewardsofproductownershiphavebeentransferred.Thelegalownershipofthegoodshasbeentransferred.InterestRevenueInterestRevenueshallbedeterminedaccordingtothetimeoftheCompany’suseofmonetarycapitalandtheactualinterestrate.
31.GovernmentGrants
(1)TypeAgovernmentgrantmeansthemonetaryornon-monetaryassetsobtainedfreebyanenterprisefromthegovernment.Governmentgrantsconsistofthegovernmentgrantspertinenttoassetsandgovernmentgrantspertinenttoincomeaccordingtotherelevantgovernmentdocuments.Forthosethegovernmentdocumentsnotdefinitestipulatetheassistanceobject,thejudgmentbasisofthe
Companyclassifiesthegovernmentgrantspertinenttoassetsandgovernmentsubsidiespertinenttoincomeis:
whetherareusedforpurchasingorconstructingorforformingthelong-termassetsbyothermethods.
(2)RecognitionofGovernmentSubsidiesThegovernmentsubsidiesshouldberecognizedonlywhenmeetwiththeattachedconditionsofthegovernmentgrantsaswellascouldbeacquired.Ifthegovernmentgrantsarethemonetaryassets,shouldbemeasuredaccordingtothereceivedorreceivableamount;andforthegovernmentgrantsarethenon-monetaryassets,shouldbemeasuredbyfairvalue.
(3)AccountingTreatmentThegovernmentgrantspertinenttoassetsshallberecognizedasdeferredincome,andincludedinthecurrentgainsandlossesoroffsetthebookvalueofrelatedassetswithintheusefullivesoftherelevantassetswithareasonableandsystematicmethod.Governmentgrantspertinenttoincomeusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyinthesubsequentperiodshallberecognizedasdeferredincome,andshallbeincludedinthecurrentprofitandlossduringtheperiodofconfirmingtherelevantcosts,expensesorlosses;thoseusedtocompensatetherelevantcosts,expensesorlossesoftheCompanyalreadyhappenedshallbeincludedinthecurrentgainsandlossesorusedtooffsetrelevantcostsdirectly.Forgovernmentgrantsthatincludebothassets-relatedandincome-relatedparts,theyshouldbedistinguishedseparatelyforaccountingtreatment;forgovernmentsubsidiesthataredifficulttobedistinguished,theyshouldbeclassifiedasincome-related.GovernmentgrantsrelatedtothedailyactivitiesoftheCompanyshallbeincludedintootherincomeorusedtooffsetrelevantcostsbythenatureofeconomicbusiness;thoseunrelatedshallbeincludedintonon-operatingincome.Thegovernmentgrantsrecognizedwithrelevantdeferredincomebalancebutneedtoreturnshallbeusedtooffsetthebookbalanceofrelevantdeferredincome,theexcessivepartshallbeincludedinthecurrentgainsandlossesoradjustingthebookvalueofassetsforthegovernmentgrantsassets-relatedthatoffsetthebookvalueofrelevantassetswhentheyareinitiallyrecognized;thosebelongtoothercasesshallbedirectlyincludedinthecurrentgainsandlosses.
32.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)BasisofrecognizingthedeferredincometaxassetsAccordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,adeferredtaxassetshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.TherecognitionofthedeferredincometaxassetsislimitedbytheincometaxpayablethattheCompanyprobablygainsfordeductingthedeductibletemporarydifferences.Atthebalancesheetdate,wherethereisstrongevidenceshowingthatsufficienttaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,thedeferredtaxassetunrecognizedinpriorperiodshallberecognized.TheCompanyassessesthecarryingamountofdeferredtaxassetatthebalancesheetdate.Ifit’sprobablethatsufficienttaxableprofitwillnotbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyshallwritedownthecarryingamountofdeferredtaxasset,orreversetheamountwrittendownlaterwhenit’sprobablethatsufficienttaxableprofitwillbeavailable.
(2)Basisofrecognizingthedeferredincometaxliabilities
Accordingtothedifferencebetweenthebookvalueoftheassetsandliabilitiesandtheirtaxbasis,Adeferredtaxliabilityshallbemeasuredinaccordwiththetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
33.LeaseTheterm"lease"referstoacontractwherebythelessortransferstherightofuseregardingtheleasedasset(s)tothelesseewithinaspecifiedtimeinexchangeforconsideration.Fromtheeffectivedateofacontract,theCompanyassesseswhetherthecontractisaleaseorincludesanylease.Ifapartytothecontracttransferredtherightallowingthecontrolovertheuseofoneormoreassetsthathavebeenidentifiedwithinacertainperiod,inexchangeforaconsideration,suchcontractisaleaseorincludesalease.Ifacontractcontainsmultiplesingleleasesatthesametime,theCompanywillsplitthecontract,andconductaccountingtreatmentofeachsingleleaserespectively.Ifacontractcontainsbothleaseandnon-leasepartsatthesametime,thelesseeandlessorwillsplittheleaseandnon-leaseparts.
(1)TheCompanyasthelesseeSeeNote28(leaseliabilities)forthegeneralaccountingtreatmentoftheCompanyasthelessee.Forshort-termleaseswithaleasetermnotexceeding12monthsandleasesoflow-valueassetswhensingleleasedassetsarebrandnewassets,theCompanychoosesnottorecognizeright-of-useassetsandleaseliabilities,andrecordsrelevantrentalexpensesintotheprofitorlossofthecurrentperiodortheunderlyingassetcostsonastraight-linebasisineachperiodwithintheleaseterm.Ifaleasechangesandmeetsthefollowingconditionsatthesametime,theCompanywillaccountfortheleasechangeasaseparatelease:theleasechangeexpandstheleasescopebyincreasingtherighttouseoneormoreleasedassets;theincreasedconsiderationisequivalenttotheseparatepriceoftheexpandedleasescopeadjustedaccordingtothecontract.Wheretheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theCompanywillallocatetheconsiderationofthechangedcontractandre-determinethechangedleaseterm.Thepresentvaluedeterminedbasedonthechangedleasepaymentsandtherevisedrateofdiscountareusedtoremeasuretheleaseliabilities.
(2)TheCompanyasthelessorOnthecommencementdateoftheleaseterm,theCompanyclassifiestheleasesthatsubstantiallytransferalmostallrisksandrewardsrelatedtotheownershipoftheleasedassetsasfinanceleases,andleasesotherthanfinanceleasesasoperatingleases.
1)OperatingleaseTheCompanyrecognizestheleasepaymentsreceivableasrentalsineachperiodwithintheleasetermonastraight-linebasis.TheCompanycapitalizestheinitialdirectcostsrelatedtooperatingleasesuponincurrencethereofandapportionsandincludessuchcostsintheprofitorlossofthecurrentperiodonthebasissameastherecognitionofrentals.Thereceivedvariableleasepaymentsrelatedtooperatingleasesthatarenotincludedintheleasepaymentsreceivableareincludedinprofitorlossofthecurrentperiodwhentheyareactuallyincurred.
2)FinancialleaseOnthecommencementdateoftheleaseterm,theCompanyrecognizesthefinanceleasereceivablesonthebasisofnetinvestmentinthelease(thesumoftheunguaranteedresidualvalueandthepresentvalueoftheleasepaymentsreceivablenotyetreceivedonthecommencementdateoftheleasetermdiscountedattheinterestrateimplicitinlease)andderecognizestheleasedassetofthefinancelease.TheCompanycalculatesandrecognizesinterestincomebasedontheinterestrateimplicitinleaseineachperiodwithintheleaseterm.Thereceived
variableleasepaymentsthatarenotcoveredinthemeasurementofthenetinvestmentintheleaseareincludedintheprofitorlossofthecurrentperiodwhenactuallyincurred.
(3)SaleandleasebackTheCompanyassesseswhethertheassettransferinasaleandleasebacktransactionisasaleinaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprisesNo.14-Income.
1)TheCompanyasthelesseeIftheassettransferinasaleandleasebacktransactionisasale,theCompanymeasurestheright-of-useassetsformedbythesaleandleasebackbasedontheportionoftheoriginalasset'scarryingvaluethatisrelatedtotheuserightacquiredbytheleaseback,andrecognizesrelatedgainsorlossesonlyfortherighttransferredtothelessor.Iftheassettransferinasaleandleasebacktransactionisnotasale,theCompanycontinuestorecognizethetransferredassetandatthesametimerecognizesafinancialliabilityequivalenttothetransferincome,andconductscorrespondingaccountingtreatmentforthefinancialliabilityinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
2)TheCompanyasthelessorIftheassettransferinasaleandleasebacktransactionisasale,theCompanyappliesotheraccountingstandardsforbusinessenterprisestotheaccountingtreatmentforassetpurchase,andconductscorrespondingaccountingtreatmentforassetleaseinaccordancewiththeAccountingStandardforBusinessEnterprisesNo.21-Leases.Iftheassettransferinasaleandleasebacktransactionisnotasale,theCompanydoesnotrecognizethetransferredasset,butrecognizesafinancialassetequivalenttothetransferincome,andconductscorrespondingaccountingtreatmentforthefinancialassetinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments.
34.OtherSignificantAccountingPoliciesandAccountingEstimatesTheCompanyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedonanongoingbasis,basedonhistoricalexperienceandotherfactors,includingreasonableexpectationsoffutureevents.Importantaccountingestimatesandcriticalassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfiscalyeararelistedasfollows:
(1)ClassificationoffinancialassetsThesignificantjudgmentsinvolvedwhentheCompanydeterminestheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheCompanydeterminesthebusinessmodelformanagingfinancialassetsatthelevelofthefinancialassetportfolio,takingintoaccountfactorssuchastheapproachofevaluatingandreportingtheperformanceoffinancialassetstokeymanagementpersonnel,therisksaffectingtheperformanceoffinancialassetsandthemannerinwhichtheyaremanaged,andwayinwhichtherelevantbusinessmanagementpersonnelarecompensated.Thefollowingmainjudgmentsexistinassessingwhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements:
Whetherthetimedistributionoramountoftheprincipalamountduringthedurationmaychangeduetoearlyrepaymentorforotherreasons;whethertheinterestincludesonlythetimevalueofmoney,creditrisk,otherbasiclendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentreflectsonlytheoutstandingprincipalandinterestbasedontheoutstandingprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.
(2)MeasurementofexpectedcreditlossesofaccountsreceivableTheCompanycalculatestheexpectedcreditlossofaccountsreceivableusingtheexposuretodefaultriskofaccountsreceivableandtheexpectedcreditlossratio,anddeterminestheexpectedcreditlossratiobasedontheprobabilityofdefaultandthedefaultlossratio.Whendeterminingtheexpectedcreditlossratio,theCompanyusesdatasuchasinternalhistoricalcreditlossexperienceandadjustshistoricaldatatotakeintoaccountcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theCompanyusesindicatorssuchastheriskofeconomicdownturnandchangesintheexternalmarketenvironment,technologicalenvironmentandcustomerprofile.TheCompanyregularlymonitorsandreviewstheassumptionsrelatedtothecalculationofexpectedcreditlosses.
(3)InventoryfallingpricereservesTheCompanyfollowstheinventoryaccountingpolicyandcarriesoutmeasurementbasedonwhichissmallerbetweenthecostandthenetrealizablevalue.Ifthecostofinventoriesishigherthanitsnetrealizablevalue,thentheinventoryfallingpricesreserveswereimplemented.Theimpairmentofinventoriestonetrealizablevalueisbasedonanassessmentofthemarketabilityoftheinventoriesandtheirnetrealizablevalue.Themanagementshalldeterminetheimpairmentofinventoriesafterobtainingreliableevidencewhiletakingintoaccountthepurposeofholdinginventories,theeffectofitemsafterthebalancesheetdate,andotherfactors.Differencesbetweenactualresultsandoriginalestimateswillaffectthecarryingvalueofinventoriesandtheprovisionorreversalofreversesforfallingpricesofinventoriesintheperiodinwhichtheestimatesarechanged.
(4)DeterminationoffairvalueofunlistedequityinvestmentThefairvalueofunlistedequityinvestmentistheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateforitemswithsimilartermsandriskcharacteristics.SuchvaluationrequirestheCompanytoestimateexpectedfuturecashflowsanddiscountratesandisthereforesubjecttouncertainty.Underlimitedcircumstances,iftheinformationusedtodeterminefairvalueisinsufficient,oriftherangeofpossibleestimatesoffairvalueiswideandthecostrepresentsthebestestimateoffairvaluewithinthatrange,thecostmayrepresentitsappropriateestimateoffairvaluewithinthatrangeofdistribution.
(5)Reservesforlong-termassetsimpairmentTheCompanydeterminesatthebalancesheetdatewhetherthereisanyindicationthatanon-currentasset,otherthanafinancialasset,maybeimpaired.Forintangibleassetswithanuncertainusefullife,impairmenttestsshallbeconductedwhenthereisanindicationofimpairmentbesidestheannualimpairmenttest.Othernon-currentassetsotherthanfinancialassetsshallbetestedforimpairmentwhenthereisanindicationthatthecarryingamountisirrecoverable.Animpairmentisindicatedwhenthecarryingamountofanassetorassetgroupisgreaterthantherecoverableamount,whichisthehigherofthefairvalueminusdisposalexpensesandthepresentvalueofestimatedfuturecashflows.Thenetvalueofthefairvalueminusdisposalexpensesisdeterminedbyreferringtothenegotiablesalepriceorobservablemarketpriceofsimilarassetsinafairtransactionanddeductingincrementalcostsdirectlyattributabletothedisposaloftheasset.Estimatingthepresentvalueoffuturecashflowsrequiressignificantjudgmentswithrespecttotheproductionvolumeoftheasset(orassetgroup),thesellingprice,therelatedoperatingcostsandthediscountrateusedincalculatingthepresentvalue.TheCompanyusesallavailablerelevantinformationinestimatingrecoverableamounts,includingprojectionsofvolumes,sellingpricesandrelatedoperatingcostsbasedonreasonableandsupportableassumptions.
(6)Depreciationandamortization
TheCompanydepreciatesandamortizesinvestmentproperties,fixedassetsandintangibleassetsonastraight-linebasiswithintheirservicelivesaftertakingintoaccounttheirresidualvalues.TheCompanyregularlyreviewsservicelivestodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.TheservicelifeisdeterminedbytheCompanybasedonpastexperiencewithsimilarassetsandexpectedtechnologicalupdates.Depreciationandamortizationexpenseswillbeadjustedinthefutureperiodifthereisasignificantchangeinpreviousestimates.
(7)DeferredincometaxassetsTotheextentthatitisprobablethatsufficienttaxableprofitwillbeavailabletooffsetthelosses,theCompanyrecognizesdeferredincometaxassetsforallunusedtaxlosses.ThisrequirestheCompany'smanagementtousemanyjudgmentstoestimatethetimingandamountoffuturetaxableprofits,takingintoaccounttaxplanningstrategies,soastodeterminetheamountofdeferredincometaxassetstoberecognized.
(8)IncometaxInthenormaloperatingactivitiesoftheCompany,theultimatetaxtreatmentandcalculationofcertaintransactionsaresubjecttocertainuncertainties.Whethersomeitemscanbedisbursedbeforetaxrequirestheapprovalofthetaxauthorities.Ifthefinaldeterminationofthesetaxmattersdiffersfromtheamountsinitiallyestimated,thedifferencewillhaveanimpactoncurrentanddeferredincometaxesintheperiodinwhichtheyarefinallydetermined.
35.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
| Changestotheaccountingpoliciesandwhy | Approvalprocess | Remark |
| TheCompanystartstoimplementthe“Accountingtreatmentforsalesofproductsorby-productsbyenterprisesgeneratedfromfixedassetsbeforereachingtheintendedstateofavailabilityorfromtheperiodofR&D”and“Judgmentononerouscontracts”and“Presentationofcentralizedcapitalmanagement”stipulatedintheAccountingStandardsforBusinessEnterprisesInterpretationNo.15issuedbytheMinistryofFinancein2021since1January2022. | On22August2022,the13thMeetingofthe9thBoardofDirectorsandthe12thMeetingofthe9thSupervisoryCommitteewereheldbytheCompanyonwhichtheProposalonChangesofAccountingPolicieswasapproved. | Notesofchangestoaccountingpolicies-(1) |
| TheCompanystartstoimplementthe“accountingtreatmentoftheincometaxeffectoffinancialinstrumentrelateddividendwhoseissuerisclassifiedasequityinstrument”and“accountingtreatmentofshare-basedpaymentincashsettlementmodifiedintoshare-basedpaymentinequitysettlementbytheenterprise”stipulatedintheAccountingStandardsforBusinessEnterprisesInterpretationNo.16issuedbytheMinistryofFinancein2022since13December2022. | / | Notesofchangestoaccountingpolicies-(2) |
Descriptionofchangesinaccountingpolicies:
(1)TheimpactofimplementingtheInterpretationNo.15ofAccountingStandardsforBusinessEnterprisesontheCompanyOn31December2021,theMinistryofFinanceissuedtheInterpretationNo.15ofAccountingStandardsforBusinessEnterprises(C.K.[2021]No.35)(hereinafterreferredtoas“InterpretationNo.15”).Contentsof“accountingtreatmentofexternalsalesofproductsorby-productproducedbytheenterprisebeforethefixedassetsreachtheintendedusablestateorduringtheresearchanddevelopmentprocess(hereinafterreferredtoas‘TrialSales’)”and“judgmentonloss-makingcontracts”cameintoforceon1January2022.TheCompanyimplementedInterpretationNo.15sincethedateofissuance,andtheimplementationhasnomaterialimpactonthefinancialstatementsduringthereportingperiod.
(2)TheimpactofimplementingtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprisesontheCompanyOn13December2022,theMinistryofFinanceissuedtheInterpretationNo.16ofAccountingStandardsforBusinessEnterprises(C.K.[2022]No.31)(hereinafterreferredtoas“InterpretationNo.16”).Theregulationsof“accountingtreatmentfordeferredincometaxrelatingtoassetsandliabilitiesarisingfromasingletransactionthatisnotsubjecttotheinitialrecognitionexemption”cameintoforceon1January2023,allowingcompaniestoimplementtheexemptionpriortotheyearofissuance,whichhasnotbeenimplementedbytheCompanyinadvancethisyear.Inaddition,thecontentsof“accountingtreatmentoftheincometaxeffectoffinancialinstrumentrelateddividendwhoseissuerisclassifiedasequityinstrument”and“accountingtreatmentofshare-basedpaymentincashsettlementmodifiedintoshare-basedpaymentinequitysettlementbytheenterprise”cameintoforceontheissuancedate.TheCompanyimplementedInterpretationNo.16sincethedateofissuance,andtheimplementationhasnomaterialimpactonthefinancialstatementsduringthereportingperiod.
(2)ChangesinAccountingEstimates
□Applicable√NotapplicableVI.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxbasis | Taxrate |
| VAT | Payabletosalesrevenue | 13%,9%,6%,5% |
| Urbanmaintenanceandconstructiontax | Taxableturnoveramount | Taxpaidinaccordancewiththetaxregulationsoftaxunitslocation |
| Enterpriseincometax | Taxableincome | 25%,15%,2.5% |
| Educationsurcharge | Taxableturnoveramount | 5% |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Name | Incometaxrate |
| ChangchaiCompany,Limited | 15% |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHorizonInvestmentCo.,Ltd. | 25% |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo., | 25% |
| Ltd. | |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 15% |
| JiangsuChangchaiMachineryCo.,Ltd. | 25% |
| ChangzhouXingshengRealEstateManagementCo.,Ltd. | 2.5% |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 15% |
2.TaxPreferenceOn30November2021,theCompanyobtainedtheCertificatesforHigh-techEnterprisesagain,anditstillenjoys15-percentpreferentialrateforcorporateincometaxduringtheReportingPeriod;theCompany’scontrollingsubsidiary-ChangchaiWanzhouDieselEngineCo.,Ltd.,thecontrollingsubsidiarycompany,shallpaythecorporateincometaxattaxrate15%from1January2011to31December2030inaccordancewiththeNoticeoftheMinistryofFinance,theGeneralAdministrationofCustomsofPRCandtheNationalAdministrationofTaxationaboutthePreferentialTaxPoliciesfortheWesternDevelopmentandMinistryofFinanceAnnouncementNo.23[2020]AnnouncementoftheMinistryofFinance,theStateAdministrationofTaxationandtheNationalDevelopmentandReformCommissiononContinuingtheEnterpriseIncomeTaxPolicyfortheGreatWesternDevelopment.On2December2020,thewholly-ownedsubsidiaryChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.obtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod;Thewholly-ownedsubsidiaryChangzhouXingshengRealEstateManagementCo.,Ltd.iseligiblesmallenterprisewithlowprofitsandshallpaythecorporateincometaxattaxrate2.5%forsmallenterpriseswithlowprofitsduringtheReportingPeriod;ThesubsidiaryZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.acquiredintheyearhasobtainedthe"High-techEnterpriseCertificate"andenjoyeda15%preferentialcorporateincometaxrateduringtheReportingPeriod.
VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 251,965.06 | 145,594.98 |
| Bankdeposits | 830,914,999.19 | 561,746,767.12 |
| Othermonetaryassets | 98,846,386.72 | 146,074,316.64 |
| Total | 930,013,350.97 | 707,966,678.74 |
| Ofwhich:Totalamountdepositedoverseas | ||
| Totalamountofrestrictioninusebymortgage,pledgeorfreeze | 95,662,384.92 | 145,564,457.15 |
Attheperiod-end,therestrictedmonetaryassetsoftheCompanywasRMB95,662,384.92,ofwhichRMB91,084,933.63wasthecashdepositforbankacceptancebills,RMB2,993,220.00wascashdepositforL/G,RMB871,348.35wascashdepositforenvironmentandRMB712,882.94wascashdepositforcredit.
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 370,103,602.57 | 404,053,261.57 |
| Ofwhich:Stocks | 78,739,311.00 | 121,940,343.76 |
| Financialproducts | 291,364,291.57 | 282,112,917.81 |
| Total | 370,103,602.57 | 404,053,261.57 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 297,125,872.54 | 334,311,236.78 |
| Total | 297,125,872.54 | 334,311,236.78 |
Ifthebaddebtprovisionfornotesreceivablewaswithdrawninaccordancewiththegeneralmodelofexpectedcreditlosses,informationrelatedtobaddebtprovisionshallbedisclosedbyreferencetothedisclosuremethodofotherreceivables:
□Applicable√Notapplicable
(2)NotesReceivablePledgedbytheCompanyatthePeriod-end:None
(3)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 176,395,231.83 | |
| Total | 176,395,231.83 |
(4)ThereWereNoNotesTransferredtoAccountsReceivablebecauseDraweroftheNotesFailedtoExecutetheContractorAgreementatthePeriod-end
4.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 51,757,257.99 | 9.91% | 34,367,361.83 | 66.40% | 17,389,896.16 | 50,437,453.63 | 9.10% | 44,054,367.15 | 87.34% | 6,383,086.48 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 470,411,042.15 | 90.09% | 117,478,758.54 | 24.97% | 352,932,283.61 | 504,092,720.08 | 90.90% | 135,266,680.08 | 26.83% | 368,826,040.00 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 470,411,042.15 | 90.09% | 117,478,758.54 | 24.97% | 352,932,283.61 | 504,092,720.08 | 90.90% | 135,266,680.08 | 26.83% | 368,826,040.00 |
| Total | 522,168,300.14 | 100.00% | 151,846,120.37 | 29.08% | 370,322,179.77 | 554,530,173.71 | 100.00% | 179,321,047.23 | 32.34% | 375,209,126.48 |
Accountreceivableswithdrawnbaddebtprovisionseparatelywithsignificantamountattheperiodend:
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonofwithdrawal | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer2 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer4 | 2,797,123.26 | 2,194,980.28 | 78.47% | Expectedtodifficultlyrecover |
| Customer5 | 3,633,081.23 | 2,122,165.73 | 58.41% | Expectedtodifficultlyrecover |
| Customer6 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer7 | 1,731,493.71 | 1,731,493.71 | 100.00% | Difficulttorecover |
| Customer8 | 1,511,937.64 | 604,775.06 | 40.00% | Expectedtodifficultlyrecover |
| Customer9 | 3,329,074.84 | 720,031.71 | 21.63% | Expectedtodifficultlyrecover |
| Customer10 | 2,025,880.18 | 2,025,880.18 | 100.00% | Difficulttorecover |
| Customer11 | 5,972,101.90 | 5,972,101.90 | 100.00% | Difficulttorecover |
| Customer12 | 4,592,679.05 | 4,592,679.05 | 100.00% | Difficulttorecover |
| Total | 37,766,277.50 | 32,137,013.31 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup:
Unit:RMB
| Aging | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 327,927,427.98 | 6,558,548.57 | 2.00% |
| 1to2years | 25,360,867.63 | 1,268,043.39 | 5.00% |
| 2to3years | 6,764,456.55 | 1,014,668.48 | 15.00% |
| 3to4years | 1,377,872.15 | 413,361.64 | 30.00% |
| 4to5years | 1,890,703.46 | 1,134,422.08 | 60.00% |
| Over5years | 107,089,714.38 | 107,089,714.38 | 100.00% |
| Total | 470,411,042.15 | 117,478,758.54 | -- |
Notesofthebasisofdeterminingthegroup:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsincurredactually,amongwhichtheaccountsincurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 343,017,134.79 |
| 1to2years | 25,903,580.29 |
| 2to3years | 6,917,677.75 |
| Over3years | 146,329,907.31 |
| 3to4years | 3,465,761.24 |
| 4to5years | 3,840,453.02 |
| Over5years | 139,023,693.05 |
| Total | 522,168,300.14 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Transferofconsolidatedsubsidiary | |||
| Baddebtprovisionwithdrawnseparately | 44,054,367.15 | 493,726.45 | 10,180,731.77 | 34,367,361.83 | ||
| Baddebtprovisionwithdrawnbygroup | 135,266,680.08 | 2,632,425.80 | 20,769,169.67 | 348,822.33 | 117,478,758.54 | |
| Total | 179,321,047.23 | 3,126,152.25 | 30,949,901.44 | 348,822.33 | 151,846,120.37 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)AccountsReceivablewithActualVerificationduringtheReportingPeriod
Unit:RMB
| Item | Verifiedamount |
| Accountsreceivablewithactualverification | 30,949,901.44 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
| Nameoftheentity | Natureoftheaccountsreceivable | Verifiedamount | Reasonforverification | Verificationproceduresperformed | Arisingfromrelated-partytransactionsornot |
| Customer1 | Accountsreceivableforgoods | 2,837,045.23 | Withaccountsreceivableagingover5years,thedebtorshavenoassetsfordebtextinguishmentduetothecounterpartcompanybeingrevokedorcancelled,ordebtreorganisation,bankruptcyclearing,orjudiciallitigationandotherreasons. | ChangchaiWanzhouDieselEngineCo.,Ltd.heldthe1stExtraordinaryGeneralMeetingon20December2022andapprovedtheProposalonVerificationofSomeAccountsReceivable. | Not |
| Customer2 | 2,790,920.00 | ||||
| Customer3 | 2,589,892.74 | ||||
| Customer4 | 2,173,984.00 | ||||
| Customer5 | 1,962,873.80 | ||||
| Customer6 | 1,635,047.54 | ||||
| Customer7 | 1,444,186.14 | ||||
| Customer8 | 1,266,654.55 | ||||
| Customer9 | 1,209,883.25 | ||||
| Customer10 | 1,128,969.12 | ||||
| Customer11 | 1,068,019.00 | ||||
| Customer12 | 1,062,062.94 | ||||
| Customer13 | 1,043,064.00 | ||||
| Total | 22,212,602.31 |
(4)Top5oftheEndingBalanceoftheAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 182,469,247.05 | 34.94% | 3,649,384.94 |
| Customer2 | 40,330,698.62 | 7.72% | 806,613.97 |
| Customer3 | 20,619,430.63 | 3.95% | 412,388.61 |
| Customer4 | 18,538,588.59 | 3.55% | 913,245.46 |
| Customer5 | 15,564,496.00 | 2.98% | 311,289.92 |
| Total | 277,522,460.89 | 53.14% |
5.AccountsReceivableFinancing
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 242,813,392.79 | 497,388,826.02 |
| Total | 242,813,392.79 | 497,388,826.02 |
ChangesofaccountsreceivablefinancingandfairvaluethereofintheReportingPeriod
√Applicable□NotapplicablePleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivablefinancing.
□Applicable√NotapplicableOthernotes:
TheCompanydiscountsandendorsesaportionofitsbankacceptancesbasedonitsroutinefundmanagementneeds,andtheconditionsforderecognitionaremet,sothebankacceptancesareclassifiedasfinancialassetsmeasuredatfairvaluewhosechangeisincludedinothercomprehensiveincome.On31December2022,therewasnobankacceptanceforwhichbaddebtprovisionaccruedseparatelyintheCompany.TheCompanymeasurestheprovisionofbaddebtprovisiononthebasisofexpectedcreditlossesthroughouttheduration.TheCompanybelievesthatthecreditriskcharacteristicsofthebankacceptancesitholdsaresimilar,andtherewasnobankacceptanceforwhichbaddebtprovisionaccruedseparately.Inaddition,therewasnosignificantcreditriskinthebankacceptance,andnosignificantlosswouldbecausedbybankdefaults.
(1)AccountsreceivablefinancingwhichhadendorsedbytheCompanyorhaddiscountedbuthadnotdueattheperiod-end
Unit:RMB
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 511,689,991.87 | |
| Total | 511,689,991.87 |
6.Prepayments
(1)ListbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 5,941,708.21 | 93.86% | 6,706,970.55 | 81.82% |
| 1to2years | 289,373.60 | 4.57% | 94,583.55 | 1.15% |
| 2to3years | 71,654.18 | 1.13% | 362,397.67 | 4.42% |
| Over3years | 27,466.70 | 0.44% | 1,033,466.62 | 12.61% |
| Total | 6,330,202.69 | -- | 8,197,418.39 | -- |
Therewasnoprepaymentwithsignificantamountagingoveroneyearasoftheperiod-end.
(2)Top5oftheEndingBalanceofthePrepaymentsCollectedaccordingtothePrepaymentTargetAttheperiod-end,thetotaltop5oftheendingbalanceoftheprepaymentscollectedaccordingtotheprepaymenttargetwasRMB4,798,600accountingfor75.80%ofthetotalendingbalanceofprepayments.
7.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | ||
| Dividendreceivable | ||
| Otherreceivables | 32,938,305.16 | 19,515,350.52 |
| Total | 32,938,305.16 | 19,515,350.52 |
(1)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Marginandcashpledge | 2,028,096.87 | 1,299,600.00 |
| Intercoursefunds | 48,701,034.90 | 35,889,738.80 |
| Pettycashandborrowingsbyemployees | 742,075.76 | 1,184,204.41 |
| Other | 13,635,867.60 | 13,630,284.64 |
| Total | 65,107,075.13 | 52,003,827.85 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2022 | 287,609.45 | 26,486,676.97 | 5,714,190.91 | 32,488,477.33 |
| Balanceof1January2022intheCurrentPeriod | ||||
| --TransfertoSecondstage | -871.48 | 871.48 | ||
| --TransfertoThirdstage | -4,266.68 | -23,342,513.38 | 23,346,780.06 | |
| --ReversetoSecondstage |
| --ReversetoFirststage | ||||
| Transferofconsolidatedsubsidiary | 3,810.00 | 3,810.00 | ||
| WithdrawaloftheCurrentPeriod | 150,404.27 | 150,404.27 | ||
| ReversaloftheCurrentPeriod | 148,176.99 | 174,638.80 | 322,815.79 | |
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | 63,002.91 | 88,102.93 | 151,105.84 | |
| Otherchanges | ||||
| Balanceof31December2022 | 373,682.65 | 2,908,755.15 | 28,886,332.17 | 32,168,769.97 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Endingbalance |
| Within1year(including1year) | 16,050,004.29 |
| 1to2years | 15,783,825.92 |
| 2to3years | 1,164,476.00 |
| Over3years | 32,108,768.92 |
| 3to4years | 420,716.17 |
| 4to5years | 338,457.65 |
| Over5years | 31,349,595.10 |
| Total | 65,107,075.13 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofwithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Transferofconsolidatedsubsidiary | |||
| Baddebtprovisionforwhichaccruedseparately | 5,714,190.91 | 177,905.47 | 5,536,285.44 | |||
| Baddebtprovisionforwhichaccruedbygroup | 26,774,286.42 | 5,493.95 | 151,105.84 | 3,810.00 | 26,632,484.53 | |
| Total | 32,488,477.33 | 5,493.95 | 177,905.47 | 151,105.84 | 3,810.00 | 32,168,769.97 |
4)ThereWereNoParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
Unit:RMB
| Item | Written-offamount |
| Otherreceivableswithactualverification | 151,105.84 |
Ofwhichtheverificationofsignificantotherreceivables:
Unit:RMB
| Nameoftheentity | Nature | Written-offamount | Reasonforverification | Verificationproceduresperformed | Whetheroccurredbecauseofrelated-partytransactions |
| Customer1 | Otherintercoursefunds | 21,472.28 | Withaccountsreceivableagingover5years,thecounterpartcompanybeingrevokedorcancelled,ordebtreorganisation,bankruptcyclearingorthedebtorshavenoassetsfordebtextinguishment | ApprovedbytheadministrativeofficemeetingofChangzhouChangchaiBenniuDieselEnginePartsCo.,Ltd.,asubsidiary. | Not |
| Customer2 | 41,530.63 | ||||
| Customer3 | 9,020.00 | TheProposalontheWrite-offofCertainOtherReceivableswasapprovedatthePartyCommitteeandOfficeMeeting. | |||
| Customer4 | 8,357.60 | ||||
| Customer5 | 7,933.63 | ||||
| Customer6 | 7,800.00 | ||||
| Customer7 | 6,700.00 | ||||
| Customer8 | 6,000.00 | ||||
| Customer9 | 6,000.00 | ||||
| Customer10 | 5,525.00 | ||||
| Total | 120,339.14 | -- | -- | -- |
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 4.52% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 4.38% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 2.50% | 1,626,483.25 |
| ChangchaiGroupSettlementCenter | Intercoursefunds | 1,140,722.16 | Over5years | 1.75% | 1,140,722.16 |
| ChangzhouHuadiEngineeringGuaranteeCo.,Ltd. | Engineeringdeposit | 1,065,400.00 | 2-3years | 1.64% | 159,810.00 |
| Total | 9,625,793.43 | 14.78% | 8,720,203.43 |
8.InventoryWhethertheCompanyneedstocomplywiththerequirementsofrealestateindustryNo
(1)CategoryofInventory
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Rawmaterials | 163,954,131.27 | 5,982,286.51 | 157,971,844.76 | 148,617,321.85 | 7,260,564.47 | 141,356,757.38 |
| Materialsprocessedoncommission | 12,299,968.98 | 12,299,968.98 | 13,877,280.60 | 13,877,280.60 | ||
| Goodsinprocess | 110,883,778.58 | 10,725,860.43 | 100,157,918.15 | 119,354,374.14 | 15,534,236.35 | 103,820,137.79 |
| Finishedgoods | 322,959,181.08 | 22,755,460.80 | 300,203,720.28 | 403,855,588.94 | 13,029,104.26 | 390,826,484.68 |
| Lowpricedandeasilywornarticles | 1,363,429.57 | 1,363,429.57 | 1,203,097.73 | 1,203,097.73 | ||
| Total | 611,460,489.48 | 39,463,607.74 | 571,996,881.74 | 686,907,663.26 | 35,823,905.08 | 651,083,758.18 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginning | Increase | Decrease | Endingbalance |
| balance | Withdrawal | Transferofconsolidatedsubsidiary | Reversalorwrite-off | Other | ||
| Rawmaterials | 7,260,564.47 | 1,473,329.89 | 491,707.02 | 3,243,314.87 | 5,982,286.51 | |
| Goodsinprocess | 15,534,236.35 | 4,808,375.92 | 10,725,860.43 | |||
| Finishedgoods | 13,029,104.26 | 13,441,573.49 | 3,715,216.95 | 22,755,460.80 | ||
| Total | 35,823,905.08 | 14,914,903.38 | 491,707.02 | 11,766,907.74 | 39,463,607.74 |
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories.
9.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 47,682,930.23 | 37,806,274.29 |
| Prepaidcorporateincometax | 1,505,424.80 | 6,143,886.15 |
| Prepaidexpense | 90,667.46 | 110,662.13 |
| Total | 49,279,022.49 | 44,060,822.57 |
10.InvestmentsinDebtObligations
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Three-yearfixedtermdeposit | 39,309,587.93 | 39,309,587.93 | 37,898,226.39 | 37,898,226.39 | ||
| Total | 39,309,587.93 | 39,309,587.93 | 37,898,226.39 | 37,898,226.39 | ||
Significantinvestmentsindebtobligations
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||||
| Parvalue | Couponrate | Actualinterestrate | Maturitydate | Parvalue | Couponrate | Actualinterestrate | Maturitydate | |
| Three-yearfixedtermdeposit | 37,000,000.00 | 3.80% | 3.72% | 26April2024 | 37,000,000.00 | 3.80% | 26April2024 | |
| Total | 37,000,000.00 | —— | —— | —— | 37,000,000.00 | —— | —— | —— |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthereportingperiod
□Applicable√Notapplicable
11.Long-termEquityInvestment
Unit:RMB
| Investees | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserves | |||||||
| Additionalinvestment | Reducedinvestment | Gainorlossrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesinotherequity | Cashbonusorprofitannouncedtoissue | Withdrawalofdepreciationreserves | Other | ||||
| II.Associatedenterprises | |||||||||||
| BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 0.00 | 44,182.50 | ||||||||
| Subtotal | 0.00 | 0.00 | 44,182.50 | ||||||||
| Total | 0.00 | 0.00 | 44,182.50 | ||||||||
12.OtherEquityInstrumentInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 378,929,240.08 | 146,375,646.53 |
| Otherequityinstrumentinvestmentmeasuredbyfairvalue | 576,631,000.00 | 633,502,000.00 |
| Total | 955,560,240.08 | 779,877,646.53 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
| Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
| FotonMotorCo.,Ltd. | 364,261,000.00 | Non-tradingequityinvestment | ||||
| BankofJiangsu | 9,360,000.00 | 127,800,000.00 | Non-tradingequityinvestment | |||
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 278,929,240.08 | Non-tradingequityinvestment |
Othernotes:
Thecorporatesecuritiesofaccommodationbusinessstillonlendingattheperiod-end:350,000sharesofFotonMotorCo.,Ltd.
13.OtherNon-currentFinancialAssets
Unit:RMB
14.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
| Item | Housesandbuildings | Total |
| I.Originalcarryingvalue | ||
| 1.Beginningbalance | 93,077,479.52 | 93,077,479.52 |
Item
| Item | Endingbalance | Beginningbalance |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | 373,500,000.00 | 112,500,000.00 |
| Total | 373,500,000.00 | 112,500,000.00 |
| 2.Increasedamountoftheperiod | ||
| (1)Outsourcing | ||
| (2)Transferfrominventories/fixedassets/constructioninprogress | ||
| (3)Enterprisecombinationincrease | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 93,077,479.52 | 93,077,479.52 |
| II.Accumulativedepreciationandaccumulativeamortization | ||
| 1.Beginningbalance | 48,480,224.31 | 48,480,224.31 |
| 2.Increasedamountoftheperiod | 2,436,475.56 | 2,436,475.56 |
| (1)Withdrawaloramortization | 2,436,475.56 | 2,436,475.56 |
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 50,916,699.87 | 50,916,699.87 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod | ||
| (1)Withdrawal | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue | ||
| 1.Endingcarryingvalue | 42,160,779.65 | 42,160,779.65 |
| 2.Beginningcarryingvalue | 44,597,255.21 | 44,597,255.21 |
15.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 720,061,387.76 | 402,915,521.65 |
| Disposaloffixedassets | ||
| Total | 720,061,387.76 | 402,915,521.65 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 457,375,409.95 | 1,012,550,535.12 | 15,509,653.38 | 41,354,837.04 | 1,526,790,435.49 |
| 2.Increasedamountoftheperiod | 253,254,929.43 | 125,801,337.31 | 4,237,121.43 | 18,442,087.47 | 401,735,475.64 |
| (1)Purchase | 39,329.44 | 1,242,576.10 | 603,856.90 | 2,296,172.76 | 4,181,935.20 |
| (2)Transferfromconstructioninprogress | 232,659,718.43 | 117,139,454.39 | 3,010,897.32 | 15,794,897.09 | 368,604,967.23 |
| (3)Enterprisecombinationincrease | 20,555,881.56 | 7,419,306.82 | 622,367.21 | 351,017.62 | 28,948,573.21 |
| 3.Decreasedamountoftheperiod | 26,299.50 | 19,654,185.78 | 614,584.34 | 2,771,002.52 | 23,066,072.14 |
| (1)Disposalorscrap | 26,299.50 | 19,654,185.78 | 614,584.34 | 2,771,002.52 | 23,066,072.14 |
| 4.Endingbalance | 710,604,039.88 | 1,118,697,686.65 | 19,132,190.47 | 57,025,921.99 | 1,905,459,838.99 |
| II.Accumulativedepreciation | |||||
| 1.Beginningbalance | 309,538,003.02 | 765,592,089.06 | 12,399,386.82 | 35,864,760.69 | 1,123,394,239.59 |
| 2.Increasedamountoftheperiod | 21,330,936.61 | 58,002,318.90 | 1,645,043.30 | 3,596,006.84 | 84,574,305.65 |
| (1)Withdrawal | 18,617,538.65 | 54,407,073.34 | 1,103,512.47 | 3,362,056.95 | 77,490,181.41 |
| (2)Transferfromcombination | 2,713,397.96 | 3,595,245.56 | 541,530.83 | 233,949.89 | 7,084,124.24 |
| 3.Decreasedamountoftheperiod | 23,799.50 | 19,648,705.40 | 598,206.35 | 2,722,626.79 | 22,993,338.04 |
| (1)Disposalorscrap | 23,799.50 | 19,648,705.40 | 598,206.35 | 2,722,626.79 | 22,993,338.04 |
| 4.Endingbalance | 330,845,140.13 | 803,945,702.56 | 13,446,223.77 | 36,738,140.74 | 1,184,975,207.20 |
| III.Depreciationreserves |
(2)ListofTemporarilyIdleFixedAssets
Unit:RMB
| Item | Originalcarryingvalue | Accumulativedepreciation | Depreciationreserves | Carryingvalue | Note |
| Machineryequipment | 476,507.50 | 53,263.47 | 423,244.03 |
16.ConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 30,259,647.16 | 268,417,880.66 |
| Engineeringmaterials | 21,900.40 | 1,887,810.25 |
| Total | 30,281,547.56 | 270,305,690.91 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
1.Beginningbalance
| 1.Beginningbalance | 480,674.25 | 480,674.25 | |||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | 57,430.22 | 57,430.22 | |||
| (1)Disposalorscrap | 57,430.22 | 57,430.22 | |||
| 4.Endingbalance | 423,244.03 | 423,244.03 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 379,758,899.75 | 314,328,740.06 | 5,685,966.70 | 20,287,781.25 | 720,061,387.76 |
| 2.Beginningcarryingvalue | 147,837,406.93 | 246,477,771.81 | 3,110,266.56 | 5,490,076.35 | 402,915,521.65 |
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 1,097,435.90 | 1,097,435.90 | ||||
| Innovationcapacityconstructionoftechnologycenter | 5,443,764.33 | 5,443,764.33 | 3,714,601.76 | 3,714,601.76 | ||
| Relocationprojectoflightengineandcasting | 11,155,119.70 | 11,155,119.70 | 254,748,122.49 | 254,748,122.49 | ||
| Equipmenttobeinstalledandpaymentforprojects | 13,660,763.13 | 13,660,763.13 | 8,857,720.51 | 8,857,720.51 | ||
| Total | 30,259,647.16 | 30,259,647.16 | 268,417,880.66 | 268,417,880.66 |
(2)ChangesinSignificantConstructioninProgressduringtheReportingPeriod
Unit:RMB
| Item | Budget | Beginningbalance | Increasedamount | Transferredinfixedassets | Otherdecreasedamount | Endingbalance | Proportionofaccumulatedinvestmentinconstructionstobudget | Jobschedule | Accumulatedamountofinterestcapitalization | Ofwhich:AmountofcapitalizedinterestsfortheReportingPeriod | CapitalizationrateofinterestsfortheReportingPeriod | Capitalresources |
| Expansioncapacityofmulti-cylinder(The2ndPeriod) | 1,097,435.90 | 1,097,435.90 | Completed | Self-raised | ||||||
| Innovationcapacityconstructionoftechnologycenter | 96,066,200.00 | 3,714,601.76 | 1,950,929.23 | 221,766.66 | 5,443,764.33 | 5.90% | Uncompleted | Self-raisedandraisedfunds | ||
| Relocationprojectoflightengineandcasting | 474,706,000.00 | 254,748,272.15 | 120,775,065.42 | 361,128,217.87 | 3,240,000.00 | 11,155,119.70 | 79.11% | Uncompleted | Self-raisedandraisedfunds | |
| Total | 570,772,200.00 | 259,560,309.81 | 122,725,994.65 | 362,447,420.43 | 3,240,000.00 | 16,598,884.03 | -- | -- | -- |
(3)EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Engineeringmaterials | 21,900.40 | 21,900.40 | 1,887,810.25 | 1,887,810.25 | ||
| Total | 21,900.40 | 21,900.40 | 1,887,810.25 | 1,887,810.25 | ||
17.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 206,783,546.68 | 15,736,719.66 | 5,488,000.00 | 1,650,973.47 | 229,659,239.81 |
| 2.Increasedamountoftheperiod | 7,404,229.03 | 2,110,482.48 | 50,000.00 | 9,564,711.51 | |
| (1)Purchase | 1,933,758.50 | 1,933,758.50 | |||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | 7,404,229.03 | 176,723.98 | 50,000.00 | 7,630,953.01 | |
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 214,187,775.71 | 17,847,202.14 | 5,538,000.00 | 1,650,973.47 | 239,223,951.32 |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 58,805,643.96 | 12,856,960.12 | 2,652,533.14 | 189,356.68 | 74,504,493.90 |
| 2.Increasedamountoftheperiod | 5,026,881.78 | 1,539,099.16 | 594,217.03 | 167,041.92 | 7,327,239.89 |
| (1)Withdrawal | 4,298,126.15 | 1,426,192.17 | 551,717.03 | 167,041.92 | 6,443,077.27 |
| (2)Combinationincrease | 728,755.63 | 112,906.99 | 42,500.00 | 884,162.62 | |
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 63,832,525.74 | 14,396,059.28 | 3,246,750.17 | 356,398.60 | 81,831,733.79 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue |
| 1.Endingcarryingvalue | 150,355,249.97 | 3,451,142.87 | 2,291,249.83 | 1,294,574.87 | 157,392,217.54 |
| 2.Beginningcarryingvalue | 147,977,902.72 | 2,879,759.54 | 2,835,466.86 | 1,461,616.79 | 155,154,745.91 |
18.Long-termPrepaidExpenses
| Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
| Trademarkrenewalfee | 110,345.30 | 105,518.03 | 13,893.01 | 201,970.32 | |
| Externalpowerlineaccessproject | 3,240,000.00 | 162,000.00 | 3,078,000.00 | ||
| Total | 110,345.30 | 3,345,518.03 | 175,893.01 | 3,279,970.32 |
19.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Baddebtprovision | 6,853,948.19 | 1,048,165.04 | 7,196,880.38 | 1,087,755.38 |
| Deductibleloss | 149,230,051.55 | 24,713,867.00 | 59,064,221.02 | 9,085,419.14 |
| Inventoryfallingpricereserves | 2,633,715.26 | 395,057.29 | 2,990,223.81 | 448,533.57 |
| Impairmentoffixedassets | 423,244.03 | 63,486.60 | 480,674.25 | 72,101.14 |
| Total | 159,140,959.03 | 26,220,575.93 | 69,731,999.46 | 10,693,809.23 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 5,677,718.36 | 851,657.75 | 3,643,147.16 | 546,472.07 |
| Changesoffairvalue | 1,039,472,114.80 | 160,508,593.58 | 720,658,981.89 | 116,797,689.04 |
| Total | 1,045,149,833.16 | 161,360,251.33 | 724,302,129.05 | 117,344,161.11 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Baddebtprovision | 177,160,942.15 | 204,612,644.18 |
| Fallingpricereservesofinventories | 36,829,892.48 | 32,833,681.27 |
| Deductibleloss | 22,257,409.96 | 14,716,019.78 |
| Total | 236,248,244.59 | 252,162,345.23 |
(4)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
| Years | Endingamount | Beginningamount | Note |
| 2022 | 434,000.66 | ||
| 2023 | 1,146,746.13 | 940,673.56 | |
| 2024 | 3,605,384.25 | 6,538,363.99 | |
| 2025 | 5,250,820.81 | 2,279,179.37 | |
| 2026 | 7,372,277.94 | 4,523,802.20 | |
| 2027 | 4,882,180.83 | ||
| Total | 22,257,409.96 | 14,716,019.78 | -- |
20.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Advancespaymentofequipments | 670,735.93 | 670,735.93 | 4,543,240.88 | 4,543,240.88 | ||
| Total | 670,735.93 | 670,735.93 | 4,543,240.88 | 4,543,240.88 | ||
21.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Mortgageloans | 7,000,000.00 | 7,000,000.00 |
| Guaranteedloans | 5,000,000.00 | |
| Obligationtopaybillsdiscountedbeforematurity | 108,437,700.65 | 61,971,466.65 |
| Total | 115,437,700.65 | 73,971,466.65 |
(2)ThereWasNoShort-termBorrowingsOverduebutUnpaid.
22.NotesPayable
Unit:RMB
| Category | Endingbalance | Beginningbalance |
| Bankacceptancebill | 471,876,397.72 | 550,774,400.00 |
| Total | 471,876,397.72 | 550,774,400.00 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
23.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 747,010,098.88 | 666,186,668.82 |
| Total | 747,010,098.88 | 666,186,668.82 |
(2)SignificantAccountsPayableAgingoverOneYear
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Paymentforgoods | 53,297,351.52 | Supplierterminatescooperation,pendingpayment |
| Paymentforequipment | 40,637,976.87 | Equipmentwarranty |
| Total | 93,935,328.39 |
24.AdvancesfromCustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Advancepaymentofhouserent | 837,425.55 | 660,965.62 |
| Total | 837,425.55 | 660,965.62 |
Therewerenosignificantadvancesfromcustomersagingoveroneyearattheendoftheperiod.
25.ContractLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Contractliabilities | 32,843,692.83 | 26,864,081.97 |
| Total | 32,843,692.83 | 26,864,081.97 |
Therewerenosignificantcontractliabilitiesagingoveroneyearattheendoftheperiod.
26.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 45,385,667.48 | 279,381,408.55 | 275,616,053.56 | 49,151,022.47 |
| II.Post-employmentbenefit-definedcontributionplans | 37,243,881.82 | 37,243,881.82 | ||
| III.Terminationbenefits | 459,903.90 | 259,903.90 | 200,000.00 | |
| IV.Currentportionofotherbenefits | ||||
| Total | 45,385,667.48 | 317,085,194.27 | 313,119,839.28 | 49,351,022.47 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 37,375,772.77 | 229,118,091.49 | 225,610,345.49 | 40,883,518.77 |
| 2.Employeewelfare | 1,592.74 | 3,138,764.51 | 3,138,764.51 | 1,592.74 |
| 3.Socialinsurance | 21,460,410.40 | 21,460,410.40 | ||
| Ofwhich:Medicalinsurancepremiums | 17,834,836.44 | 17,834,836.44 | ||
| Work-relatedinjuryinsurance | 2,049,942.68 | 2,049,942.68 | ||
| Maternityinsurance | 1,575,631.28 | 1,575,631.28 | ||
| 4.Housingfund | 21,244,377.54 | 21,244,377.54 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 8,008,301.97 | 4,419,764.61 | 4,162,155.62 | 8,265,910.96 |
| 6.Short-termabsencewithsalary | ||||
| 7.Short-termprofitsharingscheme | ||||
| Total | 45,385,667.48 | 279,381,408.55 | 275,616,053.56 | 49,151,022.47 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 36,127,234.70 | 36,127,234.70 | |
| 2.Unemploymentinsurance | 1,116,647.12 | 1,116,647.12 | |
| 3.Enterpriseannuities | |||
| Total | 37,243,881.82 | 37,243,881.82 |
27.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 2,240,512.82 | 372,401.11 |
| Corporateincometax | 1,272,876.86 | 470,363.07 |
| Personalincometax | 68,629.73 | 76,559.47 |
| Urbanmaintenanceandconstructiontax | 1,151,395.75 | 957,520.42 |
| Propertytax | 1,172,973.71 | 1,160,865.33 |
| Landusetax | 1,041,594.39 | 1,026,217.69 |
| Stampduty | 286,018.61 | 44,759.84 |
| EducationSurcharge | 229,345.14 | 90,862.46 |
| Comprehensivefees | 1,075,134.76 | 1,075,134.76 |
| Environmentalprotectiontax | 31,693.62 | 31,694.67 |
| Total | 8,570,175.39 | 5,306,378.82 |
28.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 156,155,449.10 | 144,469,939.46 |
| Total | 160,046,882.93 | 148,361,373.29 |
(1)DividendsPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
| Interestofpreferredshares/perpetualbondclassifiedasequityinstrument | ||
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 4,293,474.88 | 5,045,246.58 |
| Intercoursefundsamongunits | 7,831,477.01 | 8,364,769.41 |
| Intercoursefundsamongindividuals | 397,761.04 | 402,661.04 |
| Salesdiscountandthreeguarantees | 126,787,544.75 | 114,581,855.32 |
| Other | 16,845,191.42 | 16,075,407.11 |
| Total | 156,155,449.10 | 144,469,939.46 |
2)SignificantOtherPayablesAgingoverOneYearThesignificantotherpayablesagingoveroneyearattheperiod-endmainlyreferredtotheunsettledtemporarycreditsandchargesowned.
29.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 806,555.29 | 460,437.94 |
| Transportationstoragefee | 597,090.12 | 870,397.06 |
| Electriccharge | 1,467,332.18 | 3,131,920.88 |
| Taxtobetransferred | 2,821,340.54 | 2,250,515.65 |
| Estimatedsharevalueaddedtax | 1,909,715.09 | 3,989,913.45 |
| Obligationtopaybillstransferredbeforematurity | 66,395,231.83 | 72,391,302.15 |
| Otherwithholdingexpenses | 4,648,476.11 | 5,843,705.66 |
| Total | 78,645,741.16 | 88,938,192.79 |
30.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentgrants | 39,615,355.40 | 3,409,729.46 | 36,205,625.94 | Governmentappropriation | |
| Total | 39,615,355.40 | 3,409,729.46 | 36,205,625.94 | -- |
Iteminvolvinggovernmentgrants:
Unit:RMB
| Other | ||
| Total | 3,891,433.83 | 3,891,433.83 |
| Item | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | AmountoffsetcostintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengines | 13,040,367.00 | 1,519,266.00 | 11,521,101.00 | Relatedtoassets | ||||
| Removecompensation | 18,513,763.98 | 665,973.62 | 17,847,790.36 | Relatedtoassets | ||||
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 8,061,224.42 | 1,224,489.84 | 6,836,734.58 | Relatedtoassets |
31.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 705,692,507.00 | 705,692,507.00 | |||||
32.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium(premiumonstock) | 620,338,243.21 | 620,338,243.21 | ||
| Othercapitalreserves | 20,337,975.19 | -542,255.39 | 19,795,719.80 | |
| Total | 640,676,218.40 | -542,255.39 | 640,133,963.01 |
Othernotes,includingchangesandreasonsthereof:
Increaseforthecurrentperiod:TheoriginalshareholdingratiooftheparentcompanytothesubsidiarycompanyChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd.(hereinafterreferredtoas“HorizonAgriculturalEquipment”)is95%.TheoriginalminorityshareholdersofHorizonAgriculturalEquipmenttransferredtheir5%sharestotheparentcompanyforfreethisyear,andwasincludedinlong-termequityinvestmentandcapitalsurplusas5%oftheopeningnetassetsofHorizonAgriculturalEquipment.
33.OtherComprehensiveIncome
Unit:RMB
| Item | Beginningbalance | ReportingPeriod | Endingbalance | |||||
| IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletoownersoftheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | |||
| I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 506,011,499.55 | 175,682,593.55 | 26,352,389.03 | 149,330,204.52 | 655,341,704.07 | |||
| Ofwhich:Changescausedbyre-measurementsondefinedbenefitpensionschemes | ||||||||
| Shareofothercomprehensiveincomeofinvesteesthatwillnotbereclassifiedtoprofitorlossunderequitymethod | ||||||||
| Changesinfairvalueofotherequityinstrumentinvestment | 506,011,499.55 | 175,682,593.55 | 26,352,389.03 | 149,330,204.52 | 655,341,704.07 | ||
| Changesinfairvalueofcorporatecreditrisk | |||||||
| II.Othercomprehensiveincomethatmaysubsequentlybereclassifiedtoprofitorloss | |||||||
| Ofwhich:Shareofothercomprehensiveincomeofinvesteesthatwillbereclassifiedtoprofitorlossunderequitymethod | |||||||
| Changesinfairvalueofinvestmentinotherdebtobligations | |||||||
| Amountoffinancialassetsreclassifiedtoothercomprehensiveincome | |||||||
| Creditdepreciationreservesofinvestmentinotherdebtobligations | |||||||
| Reservesforcashflowhedges | |||||||
| Differencesarisingfromtranslationofforeigncurrency-denominatedfinancialstatements | |||||||
| Totalofothercomprehensiveincome | 506,011,499.55 | 175,682,593.55 | 26,352,389.03 | 149,330,204.52 | 655,341,704.07 |
34.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 18,812,950.04 | 4,877,232.12 | 4,841,325.41 | 18,848,856.75 |
| Total | 18,812,950.04 | 4,877,232.12 | 4,841,325.41 | 18,848,856.75 |
35.SurplusReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 320,987,630.56 | 15,053,237.26 | 336,040,867.82 | |
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 334,144,488.46 | 15,053,237.26 | 349,197,725.72 |
36.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 872,212,354.88 | 777,899,079.66 |
| Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | ||
| Beginningbalanceofretainedearningsafteradjustments | 872,212,354.88 | 777,899,079.66 |
| Add:NetprofitattributabletoownersoftheCompanyastheparent | 76,684,796.91 | 103,006,232.54 |
| Less:Withdrawalofstatutorysurplusreserves | 15,053,237.26 | 8,692,957.32 |
| Withdrawalofdiscretionalsurplusreserves | ||
| Withdrawalofgeneralreserve | ||
| Dividendofordinarysharespayable | 18,348,005.18 | |
| Dividendsofordinarysharestransferredassharecapital | ||
| Endingretainedearnings | 915,495,909.35 | 872,212,354.88 |
Listofadjustmentofbeginningretainedearnings:
(1)RMB0.00beginningretainedearningswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandardsforBusinessEnterprisesandrelevantnewregulations.
(2)RMB0.00beginningretainedearningswasaffectedbychangesinaccountingpolicies.
(3)RMB0.00beginningretainedearningswasaffectedbycorrectionofsignificantaccountingerrors.
(4)RMB0.00beginningretainedearningswasaffectedbychangesincombinationscopearisingfromsamecontrol.
(5)RMB0.00beginningretainedearningswasaffectedtotallybyotheradjustments.
37.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 2,145,567,983.95 | 1,924,209,350.48 | 2,404,119,747.06 | 2,051,932,677.42 |
| Otheroperations | 36,475,111.66 | 24,467,686.04 | 48,310,768.54 | 32,739,084.66 |
| Total | 2,182,043,095.61 | 1,948,677,036.52 | 2,452,430,515.60 | 2,084,671,762.08 |
Whethertheloweroftheauditednetprofitbeforeandafterdeductionofnon-recurringgainsandlossesisnegative
√Yes□No
Unit:RMB
| Item | 2022 | Specificdeduction | 2021 | Specificdeduction |
| Operatingrevenue | 2,182,043,095.61 | ThemainbusinessoftheCompanyistheproductionandsalesofdieselenginesandgasolineengines | 2,452,430,515.60 | ThemainbusinessoftheCompanyistheproductionandsalesofdieselenginesandgasolineengines |
| Totaloperatingincomewithdeduction | 36,475,111.66 | Otherbusinessincomeotherthanmainoperations | 48,310,768.54 | Otherbusinessincomeotherthanmainoperations |
| Theproportionoftotaloperatingincomewithdeductioninoperatingrevenue | 1.67% | 1.97% | ||
| I.Businessincomenotrelatedtothemainbusiness | ||||
| 1.Otherbusinessincomeoutsidenormalbusiness.E.g.,incomefromtheleaseoffixedassets,intangibleassets,packagingmaterials,salesmaterials,non-monetaryassetexchangewithmaterialsandoperationofentrustedmanagementbusiness,andincomethatisincludedintheincomefromprimarybusinessbutisoutsidethenormalbusinessofthelistedcompany. | 36,475,111.66 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges | 48,310,768.54 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges |
| Subtotalofbusinessincomenotrelatedtothemainbusiness | 36,475,111.66 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges | 48,310,768.54 | Incomefromsalesofmaterials,housingrentalfees,propertyandutilitycharges |
| II.Incomewithoutcommercialsubstance | ||||
| Subtotalofincome | 0.00 | None | 0.00 | None |
| withoutcommercialsubstance | ||||
| III.Otherincomenotrelatedtothemainbusinessorwithoutcommercialsubstance | 0.00 | None | 0.00 | None |
| Operatingrevenueafterdeduction | 2,145,567,983.95 | Dieselengines,gasolineenginesandfittingsbusiness | 2,404,119,747.06 | Dieselengines,gasolineenginesandfittingsbusiness |
Relevantinformationofrevenue:
Unit:RMB
| Categoryofcontracts | Total |
| ProductTypes | |
| Ofwhich: | |
| Single-cylinderdieselengines | 814,545,044.55 |
| Multi-cylinderdieselengines | 1,055,889,184.19 |
| Otherproducts | 212,223,234.20 |
| Fittings | 62,910,521.01 |
| Classifiedbybusinessarea | |
| Ofwhich: | |
| Salesindomesticmarket | 1,821,370,757.82 |
| Exportsales | 324,197,226.13 |
| Total | 2,145,567,983.95 |
Informationrelatedtoperformanceobligations:none
38.TaxesandSurtaxes
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 2,905,289.19 | 1,472,605.59 |
| Educationsurcharge | 2,073,990.11 | 1,051,826.51 |
| Propertytax | 6,312,819.28 | 6,157,554.67 |
| Landusetax | 4,474,736.13 | 5,226,882.22 |
| Vehicleandvesselusetax | 3,092.64 | 2,875.00 |
| Stampduty | 898,751.20 | 969,210.59 |
| Environmenttax | 293,572.90 | 204,133.44 |
| Other | 10,944.81 | 40,860.94 |
| Total | 16,973,196.26 | 15,125,948.96 |
39.SellingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 41,414,480.36 | 42,968,060.55 |
| Officeexpenses | 9,191,582.99 | 11,247,378.94 |
| Salespromotionalexpense | 1,435,536.25 | |
| Threeguarantees | 50,709,187.02 | 60,722,393.46 |
| Transportcharge | 320,853.84 | |
| Other | 1,314,973.34 | 548,067.28 |
| Total | 102,630,223.71 | 117,242,290.32 |
40.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 62,242,258.03 | 51,646,790.82 |
| Officeexpenses | 9,510,389.69 | 9,359,397.93 |
| Depreciationandamortization | 16,116,539.74 | 9,925,872.31 |
| Safetyexpenses | 4,877,232.12 | 4,023,200.24 |
| Repaircharge | 1,736,442.58 | 1,985,784.26 |
| Inventoryscrapandinventoryloss(profit) | -333,858.14 | 5,218,542.74 |
| Other | 25,362,185.70 | 16,730,695.92 |
| Total | 119,511,189.72 | 98,890,284.22 |
41.DevelopmentCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 43,996,939.37 | 49,871,973.96 |
| Employeebenefits | 24,608,063.95 | 21,059,641.45 |
| Depreciationandamortization | 4,570,577.95 | 4,240,194.24 |
| Designcosts | 250,000.00 | |
| Entrusteddevelopmentcharges | 6,509,898.89 | 5,521,861.13 |
| Other | 1,554,116.90 | 1,446,613.36 |
| Total | 81,239,597.06 | 82,390,284.14 |
42.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 1,993,453.71 | 5,907,625.42 |
| Less:Interestincome | 12,804,077.19 | 7,921,535.62 |
| Netforeignexchangegainsorlosses | -10,929,750.57 | 3,969,634.63 |
| Other | 150,669.42 | -752,108.63 |
| Total | -21,589,704.63 | 1,203,615.80 |
43.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Governmentgrantsdirectlyrecordedintothecurrentprofitorloss | 3,749,273.00 | 4,234,711.29 |
| Governmentgrantsrelatedtodeferredincome | 3,409,729.46 | 2,364,382.20 |
| Others | 25,025.59 | 34,238.89 |
44.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | ||
| Investmentincomefromdisposaloflong-termequityinvestment | ||
| Investmentincomefromholdingoftradingfinancialassets | ||
| Investmentincomefromdisposaloftradingfinancialassets | 12,262.47 | 450,637.63 |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 9,360,000.00 | 7,394,400.00 |
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
| Interestincomefromholdingofinvestmentindebtobligations | 1,411,361.54 | |
| Interestincomefromholdingofinvestmentinotherdebtobligations | ||
| Investmentincomefromdisposalofinvestmentinotherdebtobligations | ||
| Incomefromdebtreorganization |
| Investmentincomefromdisposalofothernon-currentfinancialassets | -221,711.92 | |
| Dividendincomefromholdingofheld-for-tradingfinancialassets | 296,740.00 | 189,085.80 |
| Incomefromrefinancingoperations | 136,003.96 | 1,028,964.68 |
| Investmentincomefromfinancialproducts | 5,995,552.35 | 2,292,008.67 |
| Forwardincomefromforeignexchangesettlement | 63,235.00 | |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -9,242,453.13 | -1,869,322.91 |
| Total | 7,969,467.19 | 9,327,296.95 |
45.GainonChangesinFairValue
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Held-for-tradingfinancialassets | -40,756,542.83 | 70,820,498.36 |
| Othernon-currentfinancialassets | 186,000,000.00 | 33,750,000.00 |
| Total | 145,243,457.17 | 104,570,498.36 |
46.CreditImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofotherreceivables | 172,411.52 | -562,856.87 |
| Baddebtlossofaccountsreceivable | -3,126,152.25 | -51,454,294.95 |
| Total | -2,953,740.73 | -52,017,151.82 |
47.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| I.Baddebtloss | ||
| II.Lossoninventoryvaluationandcontractperformancecost | -14,367,197.27 | -8,676,024.20 |
| III.Impairmentlossonlong-termequityinvestment | ||
| IV.Impairmentlossoninvestmentproperty | ||
| V.Impairmentlossonfixedassets | ||
| VI.Impairmentlossonengineeringmaterials | ||
| VII.Impairmentlossonconstructioninprogress | ||
| VIII.Impairmentlossonproductivelivingassets | ||
| IX.Impairmentlossonoilandgasassets |
| X.Impairmentlossonintangibleassets | ||
| XI.Impairmentlossongoodwill | ||
| XII.Other | ||
| Total | -14,367,197.27 | -8,676,024.20 |
48.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Disposalincomeoffixedassets | 393,161.73 | 155,515.49 |
49.Non-operatingIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Incomefromscrapoffixedassets | 236,284.29 | 5,825.24 | 236,284.29 |
| Incomefromscrapofconstructioninprogress | 2,089,369.81 | ||
| Incomefrompenalty | 93,140.00 | 398,143.00 | 93,140.00 |
| Accountsnotrequiredtobepaid | 1,714,502.08 | 1,429,558.71 | 1,714,502.08 |
| Negativegoodwillgeneratedfromcombinationnotunderthesamecontrol | 1,904,132.58 | 1,904,132.58 | |
| Other | 309,883.70 | 115,000.00 | 309,883.70 |
| Total | 4,257,942.65 | 4,037,896.76 | 4,257,942.65 |
50.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountrecordedinthecurrentnon-recurringprofitorloss |
| Retirementlossofnon-currentassets | 148,926.11 | 22,405.72 | 148,926.11 |
| Compensationforquality | 208,884.78 | 507,265.91 | 208,884.78 |
| Donation | 168,300.00 | 168,300.00 | |
| Other | 92,352.67 | 1,107,361.42 | 92,352.67 |
| Total | 618,463.56 | 1,637,033.05 | 618,463.56 |
51.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 1,267,934.70 | 443,034.91 |
| Deferredincometaxexpense | 1,930,017.97 | 15,999,671.86 |
| Adjustmentofincometaxofprioryears | -733,872.93 | -4,073,920.19 |
| Total | 2,464,079.74 | 12,368,786.58 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
| Profitbeforetaxation | 81,710,212.20 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 12,256,531.82 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -7,278,933.33 |
| Influenceofincometaxbeforeadjustment | -733,872.93 |
| Influenceofnon-taxableincome | -1,430,654.07 |
| Influenceofnon-deductablecosts,expensesandlosses | 3,725,995.40 |
| InfluenceofdeductablelossesofunrecognizeddeferredincometaxatthebeginningoftheReportingPeriod | 172,794.49 |
| InfluenceofdeductabletemporarydifferenceordeductablelossesofunrecognizeddeferredincometaxassetsintheReportingPeriod | 4,019,365.61 |
| Taxpreferencefromeligibleexpenditures | -8,267,147.25 |
| Incometaxexpense | 2,464,079.74 |
52.OtherComprehensiveIncomeSeeNote33fordetails.
53.CashFlowStatement
(1)CashGeneratedfromOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 3,751,451.59 | 4,240,292.03 |
| Otherintercoursesincash | 4,962,530.66 | 6,603,764.28 |
| Interestincome | 12,804,077.19 | 7,921,535.62 |
| Other | 1,472,234.00 | 3,871,134.26 |
| Total | 22,990,293.44 | 22,636,726.19 |
(2)CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingandadministrativeexpensepaidincash | 89,311,871.19 | 101,602,750.69 |
| Handlingcharges | 1,212,912.33 | 1,220,112.47 |
| Other | 16,260,652.67 | 15,807,386.22 |
| Othertransactions | 1,405,188.05 | 23,381,748.58 |
| Total | 108,190,624.24 | 142,011,997.96 |
(3)CashGeneratedfromOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Cashandcashequivalentsfromcombinationofsubsidiary | 11,400,123.61 | |
| Total | 11,400,123.61 |
(4)CashUsedinOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Accountsreceivablefinancing-discountinterestfrombankacceptancebills | 1,869,322.91 | |
| Total | 1,869,322.91 |
(5)CashGeneratedfromOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Discountofbankacceptancebillswithlowcreditrating | 128,437,700.65 | 58,971,466.65 |
| Total | 128,437,700.65 | 58,971,466.65 |
(6)CashUsedinOtherFinancialActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Intermediaryagencyfeesforprivateplacement | 10,849,056.61 | |
| Discountofbankacceptancebillswithlowcreditrating | 83,623,545.07 | 3,772,107.02 |
| Total | 83,623,545.07 | 14,621,163.63 |
54.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | -- | -- |
| Netprofit | 79,246,132.46 | 102,931,874.37 |
| Add:Provisionforimpairmentofassets | 17,320,938.00 | 60,693,176.02 |
| Depreciationoffixedassets,ofoilandgasassets,ofproductivelivingassets | 79,926,656.97 | 76,128,177.44 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 5,824,591.44 | 4,711,649.34 |
| Amortizationoflong-termdeferredexpenses | 175,893.01 | 17,605.33 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -393,161.73 | -155,515.49 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | -87,358.18 | -2,072,789.33 |
| Lossesonthechangesinfairvalue(gainsby“-”) | -145,243,457.17 | -104,570,498.36 |
| Financialexpenses(gainsby“-”) | 2,146,237.77 | 8,122,828.51 |
| Investmentlosses(gainsby“-”) | -17,211,920.32 | -9,327,296.95 |
| Decreaseindeferredincometaxassets(increaseby“-”) | -15,400,115.80 | -6,461,936.08 |
| Increaseindeferredincometaxliabilities(decreaseby“-”) | 17,330,133.77 | 22,461,607.94 |
| Decreaseininventory(increaseby“-”) | 89,813,152.96 | -53,079,441.83 |
| Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -33,140,187.50 | -286,670,314.47 |
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 286,526,874.74 | -79,052,905.74 |
| Other | -1,904,132.58 | |
| Netcashflowsgeneratedfromoperatingactivities | 364,930,277.84 | -266,323,779.30 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | ||
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | ||
| Endingbalanceofcash | 810,350,966.05 | 562,402,221.59 |
| Less:Beginningbalanceofcash | 562,402,221.59 | 629,939,540.50 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | 247,948,744.46 | -67,537,318.91 |
(2)CashandCashEquivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 810,350,966.05 | 562,402,221.59 |
| Including:Cashonhand | 251,965.06 | 145,594.98 |
| Bankdepositondemand | 806,914,999.19 | 561,746,767.12 |
| Othermonetaryassetsondemand | 3,184,001.80 | 509,859.49 |
| Accountsdepositedinthecentralbankavailableforpayment | ||
| Depositsinotherbanks |
| Accountsofinterbank | ||
| II.Cashequivalents | ||
| Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
| III.Endingbalanceofcashandcashequivalents | 810,350,966.05 | 562,402,221.59 |
| Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
55.AssetswithRestrictedOwnershiporRighttoUse
Unit:RMB
| Item | Endingcarryingvalue | Reasonforrestriction |
| Monetaryassets | 95,662,384.92 | Ascashdepositforbankacceptancebillandforenvironment |
| Housesandbuildings | 1,530,890.90 | Mortgagedforborrowingsfrombanks |
| Landuseright | 879,275.35 | Mortgagedforborrowingsfrombanks |
| Machineryequipment | 31,222,420.22 | Mortgagedforborrowingsfrombanks |
| Obligationtopaybillsdiscountedbeforematurity | 110,000,000.00 | |
| Obligationtopaybillstransferredbeforematurity | 66,395,231.83 | |
| Total | 305,690,203.22 |
56.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | -- | -- | |
| Ofwhich:USD | 13,543,608.99 | 6.9646 | 94,325,820.43 |
| HKD | 320,344.50 | 0.8933 | 286,163.74 |
| Accountsreceivable | |||
| Ofwhich:USD | 8,596,374.27 | 6.9646 | 59,870,308.38 |
| GBP | -67,212.27 | 8.3941 | -564,186.52 |
| Accountspayable | |||
| Ofwhich:USD | 302.60 | 6.9646 | 2,107.49 |
| Contractliabilities | |||
| Ofwhich:USD | 635,740.16 | 6.9646 | 4,427,675.94 |
| EUR | 117,145.84 | 7.4229 | 869,561.86 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
57.GovernmentGrants
(1)BasicInformationonGovernmentGrants
Unit:RMB
| Category | Amount | Listeditems | Amountrecordedinthecurrentprofitorloss |
| Subsidiesforstabilizingandincreasingjobpositionsandretainingworkers | 2,396,713.00 | Otherincome | 2,396,713.00 |
| Specialfundsforbusinessdevelopment | 102,800.00 | Otherincome | 102,800.00 |
| Membershipduesreturn | 4,760.00 | Otherincome | 4,760.00 |
| Municipalspecialfundsforenvironmentalprotection | 10,000.00 | Otherincome | 10,000.00 |
| 2021EnterpriseTechnicalInnovationAward | 50,000.00 | Otherincome | 50,000.00 |
| FinancialAssistancetothe19thBatchofTechnologyPlansinChangzhouin2021 | 200,000.00 | Otherincome | 200,000.00 |
| The9thBatchofSpecialFundsforTalentsin2022 | 50,000.00 | Otherincome | 50,000.00 |
| SupportFundsforAgriculturalMachineryGuildinZhonglouDistrcitofChangzhouin2022 | 250,000.00 | Otherincome | 250,000.00 |
| Incentivesandsubsidiesforearlierphase-outandscrappingofhigh-emissionoldcarsinChangzhou | 59,800.00 | Otherincome | 59,800.00 |
| FinancialAssistancetothe2rdBatchofTechnologyPlansinChanzhou | 110,000.00 | Otherincome | 110,000.00 |
| The25thBatchofSpecialFundsforTalentsin2022 | 120,000.00 | Otherincome | 120,000.00 |
| Industrialdevelopmentfunds | 1,500.00 | Otherincome | 1,500.00 |
| IncentivesforR&DspendingonNo.208 | 47,000.00 | Otherincome | 47,000.00 |
| Incentivesforprovincialtechnologytransferacceptor | 27,700.00 | Otherincome | 27,700.00 |
| Employmentandapprenticeshipsubsidies | 11,000.00 | Otherincome | 11,000.00 |
| Subsidiesforhigh-qualityinvention | 2,000.00 | Otherincome | 2,000.00 |
| TaxContributionAward | 30,000.00 | Otherincome | 30,000.00 |
| Subsidiesforwork-basedtraining | 45,000.00 | Otherincome | 45,000.00 |
| Innovation-drivenincentives | 31,000.00 | Otherincome | 31,000.00 |
| Re-affirmanddeclareincentivesforhighandnewtechenterprises | 200,000.00 | Otherincome | 200,000.00 |
| Demolitioncompensation(replacingZouVillagewithHehaiRoad) | 13,344,397.90 | Deferredincome | 267,333.48 |
| Demolitioncompensation-mainworkshopsinthebaseinHehaiRoad | 11,864,289.02 | Deferredincome | 398,640.14 |
| Thenationalmajorspecialproject-theflexibleprocessingproductionlinefordieselenginecylinderblocks | 13,800,000.00 | Deferredincome | 1,519,266.00 |
| NationalIII/IVAppropriationfortheresearchanddevelopmentandindustrializationofstandardhigh-horsepowerhigh-efficiencyagriculturaldieselengine | 10,000,000.00 | Deferredincome | 1,224,489.84 |
ReturnofGovernmentGrants
□Applicable√NotapplicableVIII.ChangesofConsolidationScope
1.BusinessCombinationNotundertheSameControl
(1)BusinessCombinationNotundertheSameControlintheReportingPeriod
Unit:RMB
| Nameofacquiree | Timeandplaceofgainingtheequity | Costofgainingtheequity | Proportionofequity | Waytogaintheequity | Purchasedate | Recognitionbasisofpurchasedate | Incomeofacquireefromthepurchasedatetoperiod-end | Netprofitsofacquireefromthepurchasedatetoperiod-end |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 23February2022 | 33,520,800.00 | 41.50% | Acquisitionincash | 31May2022 | On16May2022,theBoardofDirectorsofZhenjiangSiyangwasreorganizedanditsArticlesofAssociationwereamended,afterwhichdirectorsappointedbyChangchaiCompanyareinthemajority.InMay2022,ChangchaiappointedmanagerstoparticipateintheproductionandoperationmanagementofZhenjiangSiyang. | 35,440,983.37 | 4,824,237.05 |
(2)CombinationCostandGoodwill
Unit:RMB
| Combinationcost | |
| --Cash | 33,520,800.00 |
| --Fairvalueofnon-cashassets | |
| --Fairvalueofdebtsissuedorundertaken | |
| --Fairvalueofequitysecuritiesissued | |
| --Fairvalueofcontingentconsideration | |
| --Fairvalueofequitiesheldbeforethepurchasedateonthepurchasedate | |
| --Other | |
| Totalcombinationcost | 33,520,800.00 |
| Less:fairvalueofidentifiablenetassetsacquired | 35,424,932.58 |
| Theamountofgoodwill/combinedcostlessthanthefairvalueshareofidentifiablenetassetsobtained | -1,904,132.58 |
Notetodeterminationmethodofthefairvalueofthecombinationcost,considerationandchanges:
Combinationcost:AccordingtotheConfirmationofTransactionontheTransferof41.5%EquityInterest(CorrespondingtoCapitalContributionofRMB830,000)inZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.issuedbyJiangsuPropertyRightsExchangeCo.,Ltd.on12January2022,thetransactionpriceisRMB33,520,800.00,andChangchaiCompany,Limitedpaidaone-timepaymentofRMB33,520,800.00on23February2022.Determinationmethodoffairvalue:ZhenjiangSiyang'sbasedateofassetsevaluationis31March2021.TheevaluatedvalueofassetsofZhenjiangSiyangon31March2021isusedasthefairvalue.ThefairvalueofZhenjiangSiyangcontinuouslymeasuredfrom31May2022iscalculated,whichismultipliedbytheshareholdingratioofChangchaiCompany,LimitedtoobtainthefairvalueshareoftheidentifiablenetassetsobtainedbyChangchaiCompany,Limited.Themainreasonsfortheformationoflarge-valuegoodwill:Notapplicable
(3)TheIdentifiableAssetsandLiabilitiesofAcquireeonPurchaseDate
Unit:RMB
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | ||
| Fairvalueonpurchasedate | Carryingvalueonpurchasedate | |
| Assets: | 99,167,047.96 | 96,946,440.05 |
| Monetaryassets | 19,400,123.61 | 19,400,123.61 |
| Accountsreceivable | 24,790,090.34 | 24,790,090.34 |
| Inventories | 25,093,473.79 | 25,096,648.68 |
| Fixedassets | 21,864,448.97 | 21,427,812.03 |
| Intangibleassets | 6,746,790.39 | 4,959,644.53 |
| Othercurrentassets | 697,629.25 | 697,629.25 |
| Constructioninprogress | 447,840.71 | 447,840.71 |
| Deferredincometaxassets | 126,650.90 | 126,650.90 |
| Liabilities: | 13,805,764.63 | 13,472,197.21 |
| Borrowings | ||
| Accountspayable | 13,472,197.21 | 13,472,197.21 |
| Deferredincometaxliabilities | 333,567.42 | |
| Netassets | 85,361,283.33 | 83,474,242.84 |
| Less:Non-controllinginterests | 49,936,350.75 | 48,832,432.06 |
| Netassetsacquired | 35,424,932.58 | 34,641,810.78 |
(4)GainsorlossesfromRe-measurementofEquityHeldbeforethePurchaseDateatFairValueWhetherthereisatransactionthatthroughmultipletransactionstepbysteptorealizebusinesscombinationandgainingthecontrolduringtheReportingPeriod
□Yes√No
(5)NotestoReasonableConsiderationorFairValueofIdentifiableAssetsandLiabilitiesoftheAcquireethatCannotBeDeterminedontheAcquisitionDateorduringthePeriod-endoftheMergerNotapplicable
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 |
| ChangzhouHorizonInvestmentCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Changzhou | Changzhou | Industry | 75.00% | 25.00% | Set-up |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Combinationnotunderthesamecontrol | |
| JiangsuChangchaiMachineryCo.,Ltd. | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
| ChangzhouXingshengPropertyManagementCo.,Ltd. | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | Zhenjiang | Zhenjiang | Industry | 41.50% | Combinationnotunderthesamecontrol | |
Explanation:thecompanyholds41.5%ofthesharesinZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.Ourcompanyisthelargestshareholder,andtheothershareholdersareemployeeandnonemployeeshares,whicharerelativelyscattered.Therearenoothershareholderswithahighshareholdingratiothatisclosetotheactualcontroller'sshareholdingratio;Amongthe7membersoftheboardofdirectorsofZhenjiangSiyang,5aredispatchedbyourcompany.ThechairmanofZhenjiangSiyangisdispatchedbyourcompany,andourcompanyisthesubstantivecontrollerofZhenjiangSiyang,whichconstitutestheconditionsformerger.
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | -260,843.12 | 19,705,643.25 | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 58.50% | 2,822,178.67 | 52,758,529.42 |
Holdingproportionofnon-controllinginterestsinsubsidiarydifferentfromvotingproportion:Notapplicable
(3)TheMainFinancialInformationofSignificantNotWholly-ownedSubsidiary
Unit:RMB
| Name | Endingbalance | Beginningbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliability | Totalliabilities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 47,133,617.16 | 23,228,110.09 | 70,361,727.25 | 21,097,619.13 | 21,097,619.13 | 48,200,342.77 | 24,141,889.90 | 72,342,232.67 | 22,426,016.75 | 22,426,016.75 | ||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 82,697,983.58 | 28,045,494.39 | 110,743,477.97 | 20,235,256.17 | 322,701.42 | 20,557,957.59 | —— | —— | —— | —— | —— | —— |
| ChangzhouChangchaiHorizonAgriculturalEquipment | —— | —— | —— | —— | —— | —— | 14,505,888.53 | 324,302.84 | 14,830,191.37 | 25,675,299.17 | 25,675,299.17 | |
Unit:RMB
Co.,Ltd.
Name
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 34,281,252.72 | -652,107.80 | -652,107.80 | 650,437.03 | 42,629,379.24 | 386,567.27 | 386,567.27 | 2,563,679.17 |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 35,440,983.37 | 4,824,237.05 | 4,824,237.05 | -9,291,537.82 | —— | —— | —— | —— |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | —— | —— | —— | —— | 14,362,872.77 | -4,579,701.60 | -4,579,701.60 | 6,216,842.70 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018and3December2020,newpartnerswererespectivelyadded.PartnershipSharestransferwasmadeon29December2022.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhu,TongYinxin,AnhuiHaiyunzhouEquityInvestmentPartnershipEnterprise(Limited),ShenzhenJiaxinOneVentureCapitalPartnership(limitedpartnership)andZhongWende.InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.
X.TheRiskRelatedtoFinancialInstruments
ThegoaloftheCompany’sriskmanagementwasgainingthebalancebetweentheriskandincome,andreducedthenegativeimpacttotheoperationperformanceoftheCompanyinthelowestlevelandmaximizedtheinterestsofshareholdersandotherequityinvestors.Baseontheriskmanagementgoal,thebasisstrategyoftheCompany’sriskmanagementwastorecognizedandanalyzeallkindsofriskthattheCompanyfaced,setupsuitableriskbottomlineandconductriskmanagement,andsupervisedtheriskstimelyandreliablyandcontroltheriskwithinthelimitedscope.ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.Themanagementlevelhadreviewedandapprovedthepoliciestomanagetherisks,whichsummarizedasfollows:
(I)CreditRiskCreditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsoftheotherparty.ThecreditofriskoftheCompanymainlywasrelatedtoaccountreceivable,inordertocontroltherisk,theCompanyconductthefollowingmethods.TheCompanyonlyconductsrelatedtransactionwithapprovedandreputablethirdparty,inlinewiththepolicyoftheCompany,theCompanyneedtoconductcredit-checkfortheclientsadoptingwayofcredittoconducttransaction.Inaddition,theCompanycontinuouslymonitorsthebalanceofaccountreceivabletoensuretheCompanywouldnotfacethesignificantbaddebtrisk.(II)LiquidityRiskLiquidityriskisreferredtotheriskofincurringcapitalshortagewhenperformingsettlementobligationinthewayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficientcashtopaythedueliabilities.TheliquidityriskwascentralizedcontrolledbythefinancialdepartmentoftheCompany.Thefinancialdepartmentsthroughsupervisingthebalanceofthecashandsecuritiescanbeconverttocashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhassufficientcashtopaytheliabilitiesunderthecaseofallreasonableprediction.(III)MarketRiskMarketriskisrefertoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothechangeofmarketprice,includingforeignexchangeraterisk,interestraterisk.
1.InterestRateRiskInterestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangeduetothechangeofmarketprice.
2.ForeignExchangeRiskForeignexchangerateriskisreferredtotheriskincurredformthechangeofexchangerate.AsfortheCompany’sexportbusiness,customerswillbegivenacertaincreditterm,iftheRMBappreciatesagainstthedollar,thecompany'saccountsreceivablewillincurforeigncurrencyexchangeloss.XI.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue |
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | 78,739,311.00 | 291,364,291.57 | 370,103,602.57 | |
| 1.Financialassetsatfairvaluethroughprofitorloss | 78,739,311.00 | 291,364,291.57 | 370,103,602.57 | |
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 78,739,311.00 | 78,739,311.00 | ||
| (3)Derivativefinancialassets | ||||
| Wealthmanagementinvestments | 291,364,291.57 | 291,364,291.57 | ||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherinvestmentsindebtobligations | ||||
| (III)Otherequityinstrumentinvestment | 576,631,000.00 | 378,929,240.08 | 955,560,240.08 | |
| (IV)Investmentproperty | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuseright |
| heldandplannedtobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Accountsreceivablefinancing | 242,813,392.79 | 242,813,392.79 | ||
| Othernon-currentfinancialassets | 373,500,000.00 | 373,500,000.00 | ||
| Totalassetsconsistentlymeasuredbyfairvalue | 655,370,311.00 | 291,364,291.57 | 995,242,632.87 | 1,941,977,235.44 |
| (VI)Tradingfinancialliabilities | ||||
| Ofwhich:Issuedtradingbonds | ||||
| Derivativefinancialliabilities | ||||
| Other | ||||
| (VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss | ||||
| Totalliabilitiesconsistentlymeasuredbyfairvalue | ||||
| II.Inconsistentfairvaluemeasurement | -- | -- | -- | -- |
| (1)Assetsheldforsale | ||||
| Totalassetsinconsistentlymeasuredbyfairvalue | ||||
| Totalliabilities |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Forthelistedcompanystocksheldbythecompanyintheheld-for-tradingfinancialassetsmeasuredatfairvalue,theclosingmarketpriceonthebalancesheetdatewasthebasisforthemeasurementoffairvalue.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Wealthmanagementandinvestment:Theunderlyingassetsofinvestmentinwealthmanagementproductsincludebondassets,depositassets,fundassets,etc.Theportfolioofinvestmentassetsshouldbedynamicallymanaged.Thefairvalueofwealthmanagementproductsshouldbeadjustedaccordingtotheyieldofsimilarproductsprovidedbythecounterparty.
4.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)Accountsreceivablefinancing:Accountsreceivablefinancingisabankacceptancewithhighcreditrating,shortmaturityandlowrisk.Theparamountisclosetothefairvalueandisusedasthefairvalue.
(2)Amongtheothernon-currentfinancialassets:fortheinvestmentsinequityinstrumentofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,JiangsuHorizonNewEnergyTechnologyCo.,Ltd.entrustedanappraisalagencytoevaluatethevalueofallitsshareholders’equityduetotheneedforcapitalincreaseandshareexpansionin2022,andconfirmedthepremiumrateofcapitalincreasebasedontheappreciationrateoftheequityvalue.Thecompany’snewinvestorssignedtheinvestmentagreementson29August2022.Therefore,thefairvalueoftheequityinvestmenthadbeenadjustedandconfirmedaccordinglybasedonthepremiumrateofthenewroundoffinancing.
(3)Amongotherequityinvestmentinstruments,thetotalinvestmentinChengduChangwanDieselEngineDistributionCo.,Ltd.,ChongqingWanzhouChangwanDieselEnginePartsCo.,Ltd.,ChangzhouEconomicandTechnologicalDevelopmentCompany,ChangzhouTractorCompany,ChangzhouEconomicCommissionIndustrialCapitalMutualAidAssociation,BeijingEngineeringMachineryAgriculturalMachineryCompanywasRMB1.21million,andthefairvaluewasRMB0.00duetothedifficultyinrecoveringtheinvestment.SinceitsestablishmentinOctober2017,ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership)hadincreasedtheequityofpartnersattheendoftheyearduetothechangeinfairvalueoftheequityheldbyit.Inaddition,thecompany'sbusinessenvironment,operatingconditions,andfinancialstatushadnotundergonemajorchanges.Therefore,thecompanydetermineditsfairvalueonthebasisofthenetbookassetsofthepartnershipattheendoftheperiod.
5.SensitivenessAnalysisonUnobservableParametersandAdjustmentInformationbetweenBeginningandEndingCarryingValueofConsistentFairValueMeasurementItemsatLevel3
Notapplicable
6.ExplaintheReasonforConversionandtheGoverningPolicywhentheConversionHappensifConversionHappensamongConsistentFairValueMeasurementItemsatDifferentLevelsNotapplicable
7.ChangesintheValuationTechniqueintheCurrentPeriodandtheReasonforSuchChangesNotapplicable
8.FairValueofFinancialAssetsandLiabilitiesNotMeasuredatFairValueThefinancialassetsandliabilitiesmeasuredatamortizationcostmainlyincludenotesreceivable,accountsreceivable,otherreceivables,short-termborrowings,accountspayable,otherpayables,etc.Thedifferencebetweenthecarryingvalueandfairvalueforfinancialassetsandliabilitiesnotmeasuredatfairvalueissmall.
9.OtherDuringtheyear,therewasnoconversionbetweenLevel1andLevel2,norwasthereanytransfertoorfromLevel3forthefairvaluemeasurementoftheCompany'sfinancialassetsandfinancialliabilities.XII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
| ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excluding | RMB1.2billion | 32.26% | 32.26% |
Notes:InformationontheCompanyastheparentTheparentcompanyoftheCompanyisChangzhouInvestmentGroupCo.,Ltd.AccordingtotheguidingprincipleoftheNoticeofProvincialGovernmentonIssuingtheImplementationPlanforTransferringPartofState-ownedCapitaltoBoostSocialSecurityFundinJiangsuProvince(SZF[2020]No.27),theNoticeonTransferringPartofState-ownedCapitaltoCitiesandCountiestoBoostSocialSecurityFund(SCGM[2020]No.
139)fromtheDepartmentofFinanceofJiangsuProvinceandotherfivedepartmentsandtheNoticeonTransferringPartofState-ownedCapitalatUrban(District)LeveltoBoostSocialSecurityFund(CCGM[2020]No.4)fromChangzhouFinanceBureauandotherfourdepartments,the10%state-ownedequityoftheInvestmentGroupheldbyChangzhouMunicipalPeople'sGovernmentistransferredtotheDepartmentofFinanceofJiangsuProvincefreeofcharge.Afterthesharetransfer,ChangzhouPeople’sGovernmentholds90%state-ownedequityoftheInvestmentGroupandtheDepartmentofFinanceofJiangsuProvinceholds10%state-ownedequityoftheInvestmentGroup.InaccordancewithChangzhouPeople’sGovernmentDocument(CZF[2006]No.62),ChangzhouInvestmentGroupCo.,Ltd.isanenterprisewhichChangzhouPeople’sGovernmentauthorizesChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissiontoperformdutiesofinvestors.Thus,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderoftheCompanyandChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommissionisstilltheactualcontrolleroftheCompany.ThefinalcontrolleroftheCompanyisChangzhouGovernmentState-ownedAssetsSupervisionandAdministrationCommission.
2.SubsidiariesoftheCompanyRefertoNoteIXfordetails.
3、SituationofjointventuresandassociatedenterprisesofthecompanyNone
4.InformationonOtherRelatedParties
consultingoninvestmentinsecuritiesandoptions),etc.Name
| Name | RelationshipwiththeCompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
| DonghaiSecuritiesCo.,Ltd. | ControlledbythesameCompanyastheparent |
5.RelatedPartyTransactions
(1)Compensationforkeymanagementpersonnel
Unit:RMB
| Item | Currentamountincurred | Amountincurredinthepreviousperiod |
| Compensationforkeymanagementpersonnel | 7,110,100.00 | 7,667,300.00 |
(2)OtherRelated-partyTransaction
1)On25August2022,theCompanyheldtheFourthInterimMeetingoftheBoardofDirectorsandtheFourthInterimMeetingoftheSupervisoryCommitteein2022anddeliberatedandapprovedtheProposalonPlanningtoParticipateinCapitalIncreaseandShareExpansionandRelatedTransactionsofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,agreeingtoincreaseRMB75millioncapitaltoHorizonNewEnergyforthesubscriptionofitsnewlyregisteredcapitalofRMB18,844,200andauthorizingShiXinkun,theCompany’sChairman,tosigncapitalincreaseagreementswithrelatedparties.InAugust2022,HorizonNewEnergyanditsshareholderssignedtheCapitalIncreaseAgreementofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,agreeingthattheregisteredcapitalofHorizonNewEnergywasincreasedfromRMB1,405,622,491toRMB1.75billion.InOctober2022,HorizonNewEnergycompletedtheindustrialandcommercialchangeregistrationproceduresaccordingtotheaforesaidcapitalincreaseagreementandobtainedthenewbusinesslicense.
2)TheProposalonUsingIdleFundstoPurchaseWealthManagementProductswasdeliberatedandapprovedattheFourthInterimMeetingoftheBoardofDirectorsin2021andtheSecondInterimMeetingoftheBoardofSupervisorsin2021heldbytheCompanyon13July2021,allowingtheCompanyanditswholly-ownedsubsidiariestousenomorethanRMB350millionofidleraisedfundstopurchasewealthmanagementproductsforcashmanagementonthepremisethattheinvestmentprojectswithraisedfundsarecarriedoutnormallyandtheuseofraisedfundsisnotaffected.On27July2021,theCompanyenteredintoasubscriptionagreementwithDonghaiSecuritiesCo.,Ltd.fortheproduct"DonghaiSecuritiesLongGainReturnCertificateJuneTypeCustomizedIssueNo.13".ThesubscriptionamountisRMB50million,andthesourceoffundsisidleraisedfunds.Thereturncertificatematuredon25January2022,withatotalofRMB50,949,315.07inprincipalandreturnactuallyreceived,whichisrecognizedasgainsonchangesoffairvalueofRMB817,465.75in2021andasinvestmentincomeofRMB131,849.32in2022.
XIII.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof31December2022,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDateNone
(2)InDespiteofnoSignificantContingencytoDisclose,theCompanyShallAlsoMakeRelevantStatementsTherewasnosignificantcontingencyintheCompany.
XIV.EventsafterBalanceSheetDate
1.ProfitDistribution
Unit:RMB
| Profitsordividendstobedistributed | 7,056,925.07 |
2.SalesReturnNone
3.NotestoOtherEventsafterBalanceSheetDateTherewasnoothereventafterbalancesheetdate.
XV.OtherSignificantEvents
1.TheAccountingErrorsCorrectioninPreviousPeriod
(1)RetrospectiveRestatementNone
(2)ProspectiveApplicationNone
2.DebtRestructuringNotapplicable
3.AssetsReplacementNotapplicable
4.PensionPlansNotapplicable
5.DiscontinuedOperationsNotapplicable
6.SegmentInformation
(1)DeterminationBasisandAccountingPoliciesofReportableSegmentDuetotheoperationscopeoftheCompanyandsubsidiariesweresimilar,theCompanyconductscommon
management,anddidnotdividebusinessunit,sotheCompanyonlymadesinglebranchreport.
7.OtherSignificantTransactionsandEventswithInfluenceonInvestors’Decision-makingNone
XVI.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Accountsreceivableforwhichbaddebtprovisionseparatelyaccrued | 27,364,067.34 | 6.22% | 21,607,429.50 | 78.96% | 5,756,637.84 | 27,509,745.33 | 6.00% | 21,126,658.85 | 76.80% | 6,383,086.48 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbygroup | 412,769,158.39 | 93.78% | 89,464,855.73 | 21.67% | 323,304,302.66 | 430,771,912.03 | 94.00% | 88,019,743.09 | 20.43% | 342,752,168.94 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 412,769,158.39 | 93.78% | 89,464,855.73 | 21.67% | 323,304,302.66 | 430,771,912.03 | 94.00% | 88,019,743.09 | 20.43% | 342,752,168.94 |
| Total | 440,133,225.73 | 100.00% | 111,072,285.23 | 25.24% | 329,060,940.50 | 458,281,657.36 | 100.00% | 109,146,401.94 | 23.82% | 349,135,255.42 |
Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheendoftheperiod:
Unit:RMB
| Name | Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | Withdrawalreason | |
| Customer1 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer2 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer3 | 6,215,662.64 | 6,215,662.64 | 100.00% | Difficulttorecover |
| Customer4 | 2,797,123.26 | 2,194,980.28 | 78.47% | Expectedtodifficultlyrecover |
| Customer5 | 3,633,081.23 | 2,122,165.73 | 58.41% | Expectedtodifficultlyrecover |
| Customer6 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer7 | 1,731,493.71 | 1,731,493.71 | 100.00% | Difficulttorecover |
| Customer8 | 1,511,937.64 | 604,775.06 | 40.00% | Expectedtodifficultlyrecover |
| Customer9 | 3,329,074.84 | 720,031.71 | 21.63% | Expectedtodifficultlyrecover |
| Total | 25,175,616.37 | 19,546,352.18 | -- | -- |
Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup
Unit:RMB
| Endingbalance | |||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 300,792,980.52 | 6,015,859.61 | 2.00% |
| 1to2years | 25,189,130.52 | 1,259,456.53 | 5.00% |
| 2to3years | 4,391,594.73 | 658,739.21 | 15.00% |
| 3to4years | 829,958.37 | 248,987.51 | 30.00% |
| 4to5years | 709,203.46 | 425,522.08 | 60.00% |
| Over5years | 80,856,290.79 | 80,856,290.79 | 100.00% |
| Total | 412,769,158.39 | 89,464,855.73 | |
Notestothebasisforthedeterminationofthegroups:
Theaccountsreceivablewasadoptedtheaginganalysisbasedonthemonthswhentheaccountsoccurredactually,amongwhichtheaccountsoccurredearlierwillbeprioritytobesettledintermsofthecapitalturnover.ExplanationoftheinputvalueandassumptionadoptedtodeterminethewithdrawalamountofbaddebtprovisionontheCurrentPeriod:Withreferencetotheexperienceofthehistoricalcreditloss,combiningwiththepredictionofthepresentstatusandfuturefinancialsituation,thecomparisontablewaspreparedbetweentheagingoftheaccountsreceivableandestimatedcreditlossrateinthedurationandtocalculatetheestimatedcreditloss.Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 304,249,429.01 |
| 1to2years | 25,731,843.18 |
| 2to3years | 4,391,594.73 |
| Over3years | 105,760,358.81 |
| 3to4years | 2,917,847.46 |
| 4to5years | 2,658,953.02 |
| Over5years | 100,183,558.33 |
| Total | 440,133,225.73 |
(2)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriod
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 21,126,658.85 | 480,770.65 | 21,607,429.50 | |||
| Baddebtprovisionwithdrawnbygroup | 88,019,743.09 | 2,150,511.77 | 705,399.13 | 89,464,855.73 | ||
| Total | 109,146,401.94 | 2,631,282.42 | 705,399.13 | 111,072,285.23 | ||
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:No.
(3)AccountsReceivablewithActualVerificationduringtheReportingPeriod
Unit:RMB
| Item | Amountverified |
| Accountsreceivablewithactualverification | 705,399.13 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
| Nameoftheentity | Nature | Amountverified | Reason | Performanceofverificationprocedures | Whethergeneratedfromrelated-partytransaction |
| Customer1 | Accountsreceivableofgoods | 256,244.04 | Withaccountsreceivableagingover5years,thecounterpartcompanybeingrevokedorcancelled,ordebtreorganisation,bankruptcyclearingorthedebtorshavenoassetsfordebt | ThePartyCommitteeandtheofficemeetingreviewedandapprovedtheProposalontheVerificationofAccountsReceivableoftheOverseasBusinessDepartmentDuetoPendingPrototypesandPendingQualityIssues | Not |
| Customer2 | 69,529.81 | ||||
| Customer3 | 72,967.54 | ||||
| Customer4 | 59,625.69 | ||||
| Customer5 | 44,647.49 | ||||
| Customer6 | 71,769.00 | ||||
| Customer7 | 40,120.00 |
| extinguishment | |||||
| Total | 614,903.57 | -- | -- | -- |
(4)Top5oftheEndingBalanceofAccountsReceivableCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Proportiontototalendingbalanceofaccountsreceivable | Endingbalanceofbaddebtprovision |
| Customer1 | 182,469,247.05 | 41.46% | 3,649,384.94 |
| Customer2 | 40,330,698.62 | 9.16% | 806,613.97 |
| Customer3 | 20,619,430.63 | 4.68% | 412,388.61 |
| Customer4 | 18,538,588.59 | 4.21% | 913,245.46 |
| Customer5 | 15,564,496.00 | 3.54% | 311,289.92 |
| Total | 277,522,460.89 | 63.05% |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Otherreceivables | 179,596,495.57 | 26,497,081.34 |
| Total | 179,596,495.57 | 26,497,081.34 |
(1)OtherReceivable
1)OtherReceivablesClassifiedbyAccountNature
Unit:RMB
| Nature | Endingcarryingamount | Beginningcarryingamount |
| CashdepositandMargin | 1,300.00 | 4,200.00 |
| Intercoursefundsamongunits | 214,624,107.53 | 55,450,919.93 |
| Pettycashandborrowingsbyemployees | 671,817.84 | 613,410.65 |
| Other | 13,635,256.64 | 13,629,784.64 |
| Total | 228,932,482.01 | 69,698,315.22 |
2)WithdrawalofBadDebtProvision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2022 | 209,613.53 | 23,809,010.58 | 19,182,609.77 | 43,201,233.88 |
| Balanceof1January2022intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | ||||
| --TransfertoThirdstage | -23,342,513.38 | 23,342,513.38 | ||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | 6,574,799.60 | 6,574,799.60 | ||
| ReversaloftheCurrentPeriod | 183,426.54 | 168,517.57 | 351,944.11 | |
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | 88,102.93 | 88,102.93 | ||
| Otherchanges | ||||
| Balanceof31December2022 | 26,186.99 | 209,876.70 | 49,099,922.75 | 49,335,986.44 |
ChangesofcarryingamountwithsignificantamountchangedoflossprovisionintheCurrentPeriod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Carryingamount |
| Within1year(including1year) | 182,815,353.08 |
| 1to2years | 16,778,473.11 |
| 2to3years | 99,076.00 |
| Over3years | 29,239,579.82 |
| 3to4years | 420,716.17 |
| 4to5years | 333,939.40 |
| Over5years | 28,484,924.25 |
| Total | 228,932,482.01 |
3)BadDebtProvisionWithdrawn,ReversedorRecoveredintheReportingPeriodInformationofbaddebtprovisionwithdrawn:
Unit:RMB
| Category | Beginningbalance | ChangesintheReportingPeriod | Endingbalance | |||
| Withdrawal | Reversalorrecovery | Write-off | Other | |||
| Baddebtprovisionwithdrawnseparately | 19,182,609.77 | 6,574,799.60 | 25,757,409.37 | |||
| Baddebtprovisionwithdrawnbygroup | 24,018,624.11 | 351,944.11 | 88,102.93 | 23,578,577.07 | ||
| Total | 43,201,233.88 | 6,574,799.60 | 351,944.11 | 88,102.93 | 49,335,986.44 |
4)ParticularsoftheActualVerificationofOtherReceivablesduringtheReportingPeriod
Unit:RMB
| Item | Written-offamount |
| Otherreceivableswithactualverification | 88,102.93 |
Ofwhichtheverificationofsignificantotherreceivables:
Unit:RMB
| Nameoftheentity | Nature | Written-offamount | Reasonforverification | Verificationproceduresperformed | Whetheroccurredbecauseofrelated-partytransactions |
| Customer1 | Otherintercoursefunds | 9,020.00 | Withaccountsreceivableagingover5years,thecounterpartcompanybeingrevokedorcancelled,ordebtreorganisation,bankruptcyclearingorthedebtorshavenoassetsfordebtextinguishment | TheProposalontheWrite-offofCertainOtherReceivableswasapprovedatthePartyCommitteeandOfficeMeeting. | Not |
| Customer2 | 8,357.60 | ||||
| Customer3 | 7,933.63 | ||||
| Customer4 | 7,800.00 | ||||
| Customer5 | 6,700.00 | ||||
| Customer6 | 6,000.00 | ||||
| Customer7 | 6,000.00 | ||||
| Total | 51,811.23 | -- | -- | -- |
5)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables | Endingbalanceofbaddebtprovision |
| JiangsuChangchaiMachineryManufacturingCo.,Ltd. | Intercoursefunds | 135,735,255.26 | Within1year | 59.29% | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Intercoursefunds | 20,221,123.93 | Within1yearwithRMB18,996,476.74,1-2yearswithRMB1,224,647.19 | 8.83% | 20,221,123.93 |
| ChangzhouChangniuMachineryCo.,Ltd. | Intercoursefunds | 9,000,000.00 | 1-2years | 3.93% | |
| ChangzhouCompressorsFactory | Intercoursefunds | 2,940,000.00 | Over5years | 1.28% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 1.25% | 2,853,188.02 |
| Total | -- | 170,749,567.21 | 74.58% | 26,014,311.95 |
6)DerecognitionofOtherReceivablesduetotheTransferofFinancialAssets:none
7)TheAmountoftheAssetsandLiabilitiesFormedduetotheTransferandtheContinuedInvolvementofOtherReceivables:none
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 576,273,530.03 | 7,000,000.00 | 569,273,530.03 | 542,752,730.03 | 7,000,000.00 | 535,752,730.03 |
| Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
| Total | 576,317,712.53 | 7,044,182.50 | 569,273,530.03 | 542,796,912.53 | 7,044,182.50 | 535,752,730.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
| Investee | Beginningbalance(carrying | Increase/decrease | Endingbalance(carrying | Endingbalanceofdepreciatio | |||
| Additional | Reduced | Withdrawa | Other | ||||
| value) | investment | investment | lofdepreciationreserve | value) | nreserve | ||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | |||||
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 96,466,500.00 | 96,466,500.00 | |||||
| ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | 40,000,000.00 | |||||
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 0.00 | 0.00 | 7,000,000.00 | ||||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | |||||
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | 300,000,000.00 | |||||
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
| ZhenjiangSiyangDiesel | 33,520,800.00 | 33,520,800.00 |
| EngineManufacturingCo.,Ltd. | |||||
| Total | 535,752,730.03 | 33,520,800.00 | 569,273,530.03 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Increase/decrease | Endingbalance(carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | 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 | 1,937,402,949.98 | 1,743,767,173.55 | 2,221,914,222.25 | 1,913,817,106.36 |
| Otheroperations | 51,070,094.57 | 40,578,530.55 | 45,317,897.53 | 31,003,356.23 |
| Total | 1,988,473,044.55 | 1,784,345,704.10 | 2,267,232,119.78 | 1,944,820,462.59 |
Informationonrevenue:
Unit:RMB
| Categoryofcontracts | Total |
| ProductTypes | |
| Ofwhich: | |
| Single-cylinderdieselengines | 810,033,457.43 |
| Multi-cylinderdieselengines | 1,068,550,094.42 |
| Otherproducts | 31,841,402.73 |
| Fittings | 26,977,995.40 |
| Classifiedbybusinessarea | |
| Ofwhich: | |
| Salesindomesticmarket | 1,717,395,940.92 |
| Exportsales | 220,007,009.06 |
| Total | 1,937,402,949.98 |
Informationrelatedtoperformanceobligations:none
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 9,360,000.00 | 7,394,400.00 |
| Incomefromrefinancingoperations | 136,003.96 | 1,028,964.68 |
| Dividendsundercostaccounting | 28,800,000.00 | |
| Interestincomefromholdingofdebtobligationinvestments | 1,411,361.54 | |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 5,408,606.17 | 1,798,672.49 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -8,511,313.05 | -1,869,322.91 |
| Total | 36,604,658.62 | 8,352,714.26 |
XVII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets | 393,161.73 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 3,774,298.59 | |
| Gain/lossfromchangeoffairvalueoftradingfinancialassetsandliabilities,andinvestmentgainsfromdisposaloftradingfinancialassetsandliabilities,andderivativefinancialassetsandliabilities,andavailable-for-salefinancialassets,otherthanvalidhedgingrelatedtotheCompany’scommonbusinesses | 162,319,373.53 | IncreaseinthefairvalueoftheequityofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.heldbytheCompanyandpricefallingofstocksofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHighTechnologyCo.,Ltd.heldbythewholly-ownedsubsidiaryHorizonInvestmentduringtheReportingPeriod. |
| Reverseofprovisionforimpairmentofaccountsreceivableindividuallyconductingimpairmenttest | 30,000.00 | |
| Othernon-operatingincomeandexpensesotherthantheabove | 1,735,346.51 | |
| Negativegoodwillduetobusinesscombinationnotundercommoncontrol | 1,904,132.58 | |
| Less:Incometaxeffects | 19,859,063.58 | |
| Non-controllinginterestseffects(aftertax) | -24,058.57 | |
| Total | 150,321,307.93 | -- |
ExplainthereasonsiftheCompanyclassifiesanitemasannon-recurringgain/lossaccordingtothedefinitionintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLosses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 2.51% | 0.1087 | 0.1087 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | -2.41% | -0.1043 | -0.1043 |
TheBoardofDirectorsChangchaiCompany,Limited
10April2023