CHANGCHAICOMPANY,LIMITED
ANNUALREPORT2024
April2025
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.XieGuozhong,theCompany’slegalrepresentativeandGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks.TheCompanyhasdescribedindetailtherisksitmightfacein“XIProspects”in“PartIIIManagementDiscussionandAnalysis”herein.TheBoardhasapprovedafinaldividendplanasfollows:basedonthe705,692,507shares,acashdividendofRMB0.1(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves.
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 2
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 11
PartIVCorporateGovernance ...... 36
PartVEnvironmentalandSocialResponsibility ...... 56
PartVISignificantEvents ...... 57
PartVIIShareChangesandShareholderInformation ...... 66
PartVIIIPreferenceShares ...... 73
PartIXBonds ...... 73
PartXFinancialStatements ...... 74
DocumentsAvailableforReference
1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment.
2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm.
3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod.
4.TheAnnualReportdisclosedinothersecuritiesmarkets.Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompany.ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
Definitions
Term
| Term | Definition |
| “Changchai”,the“Company”or“we” | ChangchaiCompany,Limitedanditsconsolidatedsubsidiaries,exceptwherethecontextotherwiserequires |
| ChangchaiBenniu | ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. |
| ChangchaiWanzhou | ChangchaiWanzhouDieselEngineCo.,Ltd. |
| HorizonInvestment | ChangzhouHorizonInvestmentCo.,Ltd. |
| HorizonAgriculturalEquipment | ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. |
| ChangchaiRobin | ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. |
| ChangchaiMachinery | JiangsuChangchaiMachineryCo.,Ltd. |
| XingshengRealEstateManagement | ChangzhouXingshengRealEstateManagementCo.,Ltd. |
| ZhenjiangSiyang | ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. |
| RMB,RMB’0,000 | ExpressedintheChinesecurrencyofRenminbi,expressedintensofthousandsofRenminbi |
| The“ReportingPeriod”or“CurrentPeriod” | Theperiodfrom1January2024to31December2024 |
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname
| Stockname | Changchai,ChangchaiB | Stockcode | 000570,200570 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 常柴股份有限公司 | ||
| Abbr. | 苏常柴 | ||
| CompanynameinEnglish(ifany) | CHANGCHAICOMPANY,LIMITED | ||
| Abbr.(ifany) | CHANGCHAICO.,LTD. | ||
| Legalrepresentative | XieGuozhong | ||
| Registeredaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
| Zipcode | 213002 | ||
| Registeredaddressespreviouslyused | N/A | ||
| Officeaddress | 123HuaideMiddleRoad,Changzhou,Jiangsu,China | ||
| Zipcodeofofficeaddress | 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
| StockexchangewebsitewherethisReportisdisclosed | http://www.szse.cn |
| MediaandwebsitewherethisReportisdisclosed | SecuritiesTimeshttp://www.cninfo.com.cn |
PlacewherethisReportislodged
| PlacewherethisReportislodged | BoardSecretariatoftheCompany |
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 91320400134792410W |
| ChangetoprincipalactivityoftheCompanysincegoingpublic | Nochange |
| Everychangeofcontrollingshareholdersinceincorporation | On22November2018,theState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernmenttransferreditsentireholdingsof170,845,236sharesintheCompany(astakeof30.43%)toChangzhouInvestmentGroupCo.,Ltd.fornocompensation,whichhasthusbecomethecontrollingshareholderoftheCompany. |
VOtherInformationTheindependentauditfirmhiredbytheCompany:
| Name | ZhongxinghuaCertifiedPublicAccountants(SpecialGeneralPartnership) |
| Officeaddress | 20thFloor,SouthBuilding,Building1,Yard20,LizeRoad,FengtaiDistrict,Beijing,China |
| Accountantswritingsignatures | WangJun,PangDaliang |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
| 2024 | 2023 | 2024-over-2023change(%) | 2022 | |
| Operatingrevenue(RMB) | 2,415,869,028.32 | 2,155,698,787.49 | 12.07% | 2,182,043,095.61 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 18,489,896.00 | 108,495,607.05 | -82.96% | 76,684,796.91 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 52,958,683.45 | -47,466,184.54 | —— | -73,636,511.02 |
Netcashgeneratedfrom/usedinoperatingactivities(RMB)
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | -154,292,968.70 | 137,189,827.35 | —— | 364,930,277.84 |
| Basicearningspershare(RMB/share) | 0.0262 | 0.1537 | -82.95% | 0.1087 |
| Dilutedearningspershare(RMB/share) | 0.0262 | 0.1537 | -82.95% | 0.1087 |
| Weightedaveragereturnonequity(%) | 0.55% | 3.19% | -2.64% | 2.51% |
| 31December2024 | 31December2023 | Changeof31December2024over31December2023(%) | 31December2022 | |
| Totalassets(RMB) | 5,381,900,903.82 | 5,159,394,958.92 | 4.31% | 5,219,359,853.42 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 3,362,683,464.32 | 3,398,946,911.23 | -1.07% | 3,284,710,665.90 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes√NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
□Yes√NoVIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.VIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 836,479,520.73 | 659,429,631.90 | 462,057,774.62 | 457,902,101.07 |
| Netprofitattributabletothelistedcompany’sshareholders | 32,382,777.70 | 17,714,877.45 | -3,740,213.65 | -27,867,545.50 |
Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 39,340,826.68 | 20,505,438.29 | -17,209,332.16 | 10,321,750.64 |
| Netcashgeneratedfrom/usedinoperatingactivities | -16,877,796.78 | -144,936,716.22 | -148,985,056.86 | 156,506,601.16 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.
□Yes√NoIXExceptionalGainsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | 2024 | 2023 | 2022 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 304,377.71 | 105,702,551.01 | 393,161.73 | |
| Governmentgrantsrecognizedincurrentprofitorloss(exclusiveofthosethatarecloselyrelatedtotheCompany'snormalbusinessoperationsandgiveninaccordancewithdefinedcriteriaandincompliancewithgovernmentpolicies,andhaveacontinuingimpactontheCompany'sprofitorloss) | 3,477,338.38 | 3,009,573.87 | 3,774,298.59 | Thegovernmentsubsidiesincludedinthecurrentperiod'sprofitandlossamountedtoRMB7,553,294.84.DeductinggovernmentgrantsrelatedtoassetstransferredfromdeferredincometotalingRMB3,409,729.46andjobretentionsubsidiesofRMB666,227.00.Thegovernmentsubsidiesincludedinthecurrentperiod'snonrecurringprofitandlossamountedtoRMB3,477,338.38. |
| Gainorlossonfair-valuechangesinfinancialassetsandliabilitiesheldbyanon-financialenterprise,aswellasondisposaloffinancialassetsandliabilities(exclusiveoftheeffectiveportionof | -58,411,420.91 | 74,628,323.54 | 162,319,373.53 | Duringthereportingperiod,thedecreasewasattributableto:(i)thedeclineinfairvalueoftheCompany'sequityholdingsinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,and(ii)thedropinsharepricesofJiangsuLiance |
hedgesthatariseintheCompany’sordinarycourseofbusiness)
| hedgesthatariseintheCompany’sordinarycourseofbusiness) | Electro-MechanicalTechnologyCo.,Ltd.andKailongHigh-TechCo.,Ltd.heldbyitswholly-ownedsubsidiary,HorizonInvestment. | |||
| Reversedportionsofimpairmentallowancesforreceivableswhicharetestedindividuallyforimpairment | 1,122,559.94 | |||
| Non-operatingincomeandexpenseotherthantheabove | 7,735,818.14 | 21,618.24 | 30,000.00 | |
| Negativegoodwillduetobusinesscombinationnotundercommoncontrol | 267,434.70 | |||
| Less:Incometaxeffects | 1,952,095.73 | -254,543.89 | 1,735,346.51 | |
| Non-controllinginterestseffects(netoftax) | 1,904,132.58 | |||
| Total | -9,444,181.95 | 27,193,473.11 | 19,859,063.58 | |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 361,173.09 | -47,741.93 | -24,058.57 | |
| Governmentgrantsrecognizedincurrentprofitorloss(exclusiveofthosethatarecloselyrelatedtotheCompany'snormalbusinessoperationsandgiveninaccordancewithdefinedcriteriaandincompliancewithgovernmentpolicies,andhaveacontinuingimpactontheCompany'sprofitorloss) | -34,468,787.45 | 155,961,791.59 | 150,321,307.93 | -- |
Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
PartIIIManagementDiscussionandAnalysisIIndustryOverviewfortheReportingPeriodWeareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.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)DevelopmentpatternandtrendoftheindustryFromapolicyperspective,thereisastrongemphasisonprioritizingenergyconservationandemissionsreduction,promotinggreen,circular,low-carbon,andenvironmentallyfriendlypractices.Energyefficiency,emissionreduction,andreliabilityhavebecomethemainthemesinthedevelopmentofinternalcombustionengines.Theindustryisgraduallytransitioningtowardgreenerandsmartersolutions,leveragingoptimizedcombustiontechnology,emissioncontrol,andintelligentmonitoringtominimizeenvironmentalimpactandenhanceoperationalefficiency.Inrecentyears,thegovernmenthasintroducedaseriesofpoliciestosupporttheagriculturalmachinerymarket,includingpurchasesubsidies,scrappageandrenewalincentives,andsupportfortheagriculturalequipmentdistributionsector.The2025CentralNo.1Documentoutlinesgoalsforruralrevitalizationandbuildingastrongagriculturalsector,callingforhigh-qualitydevelopmentofagriculturalmachinery,acceleratedR&Dandadoptionofadvanceddomesticfarmequipment,andthephasingoutofoutdatedmachinery.Italsosupportssmartagriculture,expandingtheapplicationofAI,bigdata,andlow-altitudetechnologies.Theseinitiativespresentnewgrowthopportunitiesfortheagriculturalmachinerysectorwhiledemandinghigherlevelsoftechnologicalinnovationandindustrialupgrading.In2024,thesingle-cylinderenginemarketcontinuedtodeclineduetoweakeningagriculturaldemand,remainingonadownwardtrend.Meanwhile,multi-cylinderenginescompliantwithChinaIVemissionsstandardshavefullyenteredthemarket.Theoverallagriculturalmachinerymarketremainedstable,butlowlivestock,agriculturalproduct,andgrainprices,reducedoperationalincome,andsubsidyadjustmentshavedampenedpurchasingpower,leadingtoinsufficientdemand.Whilethetraditionalagriculturalmachineryindustryisindecline,emergingsegmentsandnewapplicationscontinuetogrow,withrisingdemandformid-to-high-endproducts.Leadingcompaniesarestrengtheningtheircompetitiveadvantages,furtherconsolidatingmarketshareanddrivingindustry
concentration.Fromanindustrydevelopmentstandpoint,technologicalinnovationisfuelingindustrialupgrades,whilepolicysupportisexpandingmarketpotential.WiththerapidadvancementofAI,bigdata,newenergy,andenergy-savingtechnologies,agriculturalmachineryisevolvingfromtraditionalmechanizationtowardhigh-end,intelligent,digital,andgreensolutions,usheringinanewwaveofstructuraltransformation.Agriculturalmachinerycompaniesareenteringahigh-qualitydevelopmentphase,acceleratingtheadoptionofadvancedtechnologiesandproductsinenergyefficiency,smartmanufacturing,andproductivityenhancement.Amidnationalstrategicinitiativesandacceleratedindustrialtransformation,newgrowthopportunitiesareemerging,pavingthewayforexpansiveprospectsintheagriculturalmachinerymarket.IIPrincipalActivityoftheCompanyintheReportingPeriod
1.PrincipalOperationsoftheCompanyWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Ourproductsaremainlyusedinagriculturalmachinery,smallengineeringmachinery,generatorsetsandshipbornemachineryandotherfieldscloselyrelatedtopeople'slivelihood.IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.
2.MainProductsoftheCompanyOurmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
Mainproducts
| Mainproducts | Graphicdisplay | Productdescription | Productfeatures | Applicationfields |
| Dieselengine | Ourdieselengineproductsincludesingle-cylinderdieselenginesandmulti-cylinderengines,coveringpowerrangefrom3kWto129kW,andcylinderdiametersfrom65mmto135mm.Besidessaleindomesticmarket,ourdieselenginesaresoldtoSoutheastAsia,SouthAmerica,theMiddleEastandAfrica. | Highpower,lowoilconsumption,lownoise,compactstructure,lowemission,goodreliability | Agriculturalmachinery,constructionmachinery,generatorsets,shipbornemachinery | |
| Gasolineengine | Ourgasolineenginesaremainlygeneral-purposesmallgasolineengines,coveringthepowerrangefrom1.5kWto9.0kW.Besidessaleindomesticmarket,ourgasolineenginesaresoldtoSoutheastAsia,theMiddleEast,EuropeandAmerica,Africa,Japanandothercountriesandregions. | Simplestructure,goodreliability,easymaintenance | Agriculturalmachinery,smallconstructionmachinery |
3.MajorBusinessModels
(1)R&DmodelWehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedonmarketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologycenterconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability.
(2)PurchasingmodelWeadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplandevelopedbythesalesdepartmentandtheproductionplandrawnupbytheproductiondepartmentintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchaseaccordingtosuchdemand.Meanwhile,thepurchasingdepartmentmakesaplantoguidepartsprocurementaccordingtothesalesdepartment'ssalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.
(3)ProductionmodelWeadoptthe"make-to-order"productionmanagementmodel.Thesalesdepartmentmakessalesplansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedbackofexistingcustomers'purchasingintentions.TheCompany'sproductiondepartmentmakestheproductionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanmadebythesalesdepartmentandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality.
(4)SalemodelWeadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory,andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.
4.TheCompany'spositioninthemarketWemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsofChinaInternalCombustionEngineIndustryAssociation(CICEIA),asthelargestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.
5.KeyPerformanceDrivers
(1)NationalpolicydriverInrecentyears,theNo.1Documentissuedbythecentralgovernmenthasdemonstratedthegovernment'sintentiontoattachgreaterimportancetoagricultureandstrengthenagriculturaldevelopment,soastopromotethedevelopmentofagricultureandruraleconomyandsociety,andstrengthenthesupportofagriculturaltechnologyandequipment.China'sagriculturalmachineryandequipmentindustrylayouthasalwaysbeenbasedonthemainlineofinnovation,focusedoncoretechnology,strengthenedtheconstructionofinnovationcapacity,andstrovetomakeupfortheshortcomingsandweaknesses.ThefullimplementationofNationalEmissionStandardIVandthehigh-endandintelligenttrendsofagriculturalmachineryhavelettheagriculturalmachineryindustrytowardsa
newstageofdevelopment.TheActionPlanforPromotingLarge-scaleEquipmentRenewalsandConsumerGoodsTrade-insin2024clarifiesthatoldagriculturalandindustrialmachinerywillberenewed,subsidypolicieswillbecontinuouslyimplementedforagriculturalmachineryscrappingandrenewal,thescrappingandrenewalofoldagriculturalmachinerywillbepromoted,andthestructuraladjustmentofagriculturalmachinerywillbeaccelerated.Theaccelerationofthereplacementprocessofoldequipmentofengineeringmachineryhascreatedafavorablepolicyenvironmentfortheapplicationofinternalcombustionengines.
(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborativeproduction,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargainingpower.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines.
(3)StableandefficientR&DteamWehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.
(4)Well-knownbrandwithmanywell-knowncustomersTheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Ourdieselandgasolineengines,aspowersourcesofagriculturalmachineryandcommercialvehicles,showexcellentperformanceinpowerrange,reliability,powerperliter,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnershiptimeexceeding15years.ManymainengineplantcustomersoftheCompanyarewell-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket.IIICoreCompetitivenessAnalysis
1.AdvantagesinBrandChangchaiisacentury-oldnationalindustrialenterpriseandoneofChina’searliestspecializedmanufacturersofinternalcombustionengines.The"Changchai"brandisrecognizedasaChinaFamousTrademark,anditsdieselenginesareChinaBrandNameProducts.ThecompanyhasobtainedcertificationsincludingISO9001,IATF16949(QualityManagementSystem),ISO14001(EnvironmentalManagementSystem),andIATF16949(AutomotiveProductQualityManagementSystem),aswellasthenationalqualificationforexportproductexemptionfrominspection.ChangchaihasbeenrepeatedlylistedamongChina’sTop100MachineryIndustryEnterprisesandChina’sIndustryLeadingEnterprises.Ithasbeenhonoredwithtitlessuchas:
?NationalContract-Honoring&CreditworthyEnterprise
?LeadingAgriculturalMachineryComponentsEnterpriseinChina?AAACredit-RatedAgriculturalMachineryEnterprise?JiangsuProvincialQualityManagementExcellenceAward?ChangzhouMayor’sQualityAward?"FineFarmingCup"AwardforTop10MostSatisfactoryAfter-SalesServiceBrands(multipleyears)Duringthereportingperiod,thecompanywasfurtherrecognizedas:
?NationalProduct&ServiceQualityIntegrityDemonstrationEnterprise?ChinaAgriculturalMachineryAnnualTOP50+SupportingSupplierAward?KeyLarge-ScaleMachineryIndustryEnterprise?OutstandingBrandinJiangsuAgriculturalEquipmentIndustry?JiangsuContract-Honoring&CreditworthyEnterpriseOvertheyears,whileachievingsteadyeconomicgrowth,Changchaihascultivatedanddevelopedthe"Changchai"brand—arenownednationalbrandinChina’ssmalldieselengineindustrywithindependentintellectualpropertyrightsandastrongreputationathomeandabroad.
2.TechnologicalAdvantagesChangchaioperatesaNational-LevelTechnicalCenter,aPostdoctoralResearchStation,andtheJiangsuProvincialSmall-andMedium-PowerInternalCombustionEngineEngineeringResearchCenter.Thecompanyspecializesinmanufacturingsingle-andmulti-cylinderdieselenginesinthesmall-to-mediumpowerrange,offeringthemostcomprehensiveproductportfolioandbroadestpowercoverageinChina’ssmalldieselenginesector,withindependentIPrightsforallcoreproducts.Duringthereportingperiod,Changchai:
?WontheFirstPrizeforOutstandingQualityManagementAchievementsinChina’smachineryindustry
(2024).?Obtained24newpatents,bringingitstotalto172validpatents(including18domesticand3internationalinventionpatents)bytheendof2024.
3.Marketing&ServiceAdvantagesChangchaiadoptsamarket-centricapproach,continuouslyinnovatingitssalesstrategies.Itimplementsanintegrated"Five-in-One"managementsystemcovering:
?Whole-machinesales?Sparepartssupply?Warrantyservices?Paymentcollection?CustomerfeedbackThecompanyhasbuiltanextensivenationwidesalesandservicenetwork,including:
?24salesservicecenters?736authorizedservicestations?CoverageextendingtobothurbanandruralareasThisnetworkranksamongthemostcomprehensiveinChina’ssmall-to-mediumdieselengineindustry.ThroughitsChangchaiCustomerCallCenter,thecompanydeliversproactive,rapid,convenient,andprecisepre-sales,in-sales,andafter-salesservices.TocomplywithChinaNon-RoadStageIVemissionstandardsandenhanceafter-salesprecision,Changchaihas
developedacustomizedservicemonitoringplatform,furtherstrengtheningitscompetitiveedgeincustomersupport.IVCoreBusinessAnalysis
1.OverviewIn2024,theglobaleconomicsituationcontinuedtodecline,withheightenedinternationalgeopoliticaltensionsandcomplexglobaltraderelations.Domestically,China'seconomymaintainedstablegrowth,butstructuralsupply-demandimbalancesandinsufficienteffectivedemandpersisted.WiththefullmarketizationofNon-RoadChinaStageIVproductsandfactorssuchaslowgrainpricesandsubsidyadjustments,marketdemanddecreasedandcompetitionintensified.Whiletheoverallsituationremainedstable,minorfluctuationswereobserved.Thetraditionalagriculturalmachineryindustryoperatedataslowerpace,whileemergingsegmentsandnewapplicationscontinuedtogrow,drivingtheindustrytowardhigh-qualitydevelopmentwithbroadmarketprospects.Adheringtoitsdevelopmentstrategyandannualoperationalobjectives,thecompanyactivelyadaptedtomarketconditions.Throughtheunitedeffortsofallemployees,itachievedsteady,orderly,andhealthydevelopment,maintainingitsleadingpositioninthesmallagriculturaldieselengineindustry.Duringthereportingperiod,thecompanysold604,600dieselengines,gasolineengines,andgeneratorsets,generatingRMB2.416billioninrevenue,representinga12.07%year-on-yearincrease.InproductR&Dandsupportingapplications,thecompanycontinuouslyoptimizeditscoreproductsbasedonmarketdemand,strengtheningtheintegrationofNon-RoadChinaStageIVmulti-cylinderengineswithnewOEMequipment.Theinstallationvolumeoflightweightdieselenginesincreasedsignificantlyyear-on-year.Thecompanyacceleratedproductdevelopmentandexpandeditsproductline,speedingupthemassproductionofChinaStageIVsingle-cylinderdieselengines,whichenteredthemarketinbulkandgaineduserrecognition.Phasedprogresswasmadeinthedevelopmentandsupportingworkformulti-cylinderproducts.Meanwhile,thecompanyincreasedinvestmentintechnologicalreserves,steadilyadvancinghybridpowerR&Dprojects.TheD25outboardengineobtainedshipinspectioncertificationandcompletedproductionandsupplychainintegration.Insalesandservices,thedomesticmarketadoptedmultiplemeasurestoconsolidateitsmainmarketsandstrengthencompetitiveproductsacrossvarioussectors,solidifyingthecompany'sshareinthetraditionalagriculturalmachinerymarketwhileacceleratingexpansionintonewfieldssuchasconstruction,cropprotection,electromechanical,low-altitude,andmarineapplications.Theinternationalmarketoptimizeditslayout,significantlyincreasingsalesincoreandemergingmarkets.Leveragingsynergiesbetweendomesticandinternationalmarkets,thecompanyrefineditscustomernetwork,improvedserviceresourceallocationandcoordination,andfurtherenhancedservicequality.Italsoexpandednewmediaapplicationstoboostmarketingeffectivenessandcustomerengagementthroughmultiplechannels.Inqualitymanagement,thecompanyimplementedmeasuressuchascomponentupgradesandproductionprocessimprovementstoaddressmarketqualityissues.Itstrengthenedtechnicalandqualityexchangeswithsuppliersanddeepenedqualityengineeringinitiatives,effectivelyimprovingoverallqualitystandards.Thecompanycontinueditssupplychainassuranceefforts,focusingonstrengthening,supplementing,andextendingthesupplychaintobuildastable,efficient,andreliablesupplysystem.Byoptimizingproductionprocessesandmanagementmodels,itreducedproductionandoperationalcostswhilecontinuouslyimprovingefficiency.Safetytraining,riskidentification,hazardrectification,emergencydrills,andoccupationalhealthmeasureswereincorporatedinto
routineinstitutionalmanagement,andtheenvironmentalmanagementsystemoperatedinanorderlyandcontrolledmanner.Duringthereportingperiod,thecompanypassedexternalauditsforISO9001andIATF16949qualitymanagementsystems.Ininternalmanagement,thecompanyfurtherstrengthenedoversightofsubsidiaries,comprehensivelyimproveditsinternalcontrolsystem,andimplementedmultiplecost-reductionandefficiency-boostingmeasurestoenhanceoperationalperformanceandgovernance.Intalentdevelopment,itintensifiedcadretrainingandrejuvenationefforts,refinedperformanceevaluationandincentivemechanisms,andmotivatedemployeestoboostcorporatevitality.Safetytraining,firedrills,andotheractivitieswereconducted,withincreasedemphasisoninspectionsandhazardrectificationtoensureasafefoundationforstableandhealthydevelopment.Variousculturalandsportsactivitieswereorganizedtocreateasecure,stable,andcohesiveworkenvironmentandcorporateculture.Externally,thecompanystrengtheneditscorporateimageandproductpromotiontoenhancebrandinfluence.Duringthereportingperiod,wholly-ownedsubsidiaryChangchaiRobinabsorbedandmergedwithwholly-ownedsubsidiaryHorizonAgriculturalEquipment,inheritingallassets,liabilities,businessoperations,andotherrightsandobligations.ByFebruary2025,HorizonAgriculturalEquipment'slegalentitystatuswasderegistered,completingthemerger.Additionally,thecompanyincreasedcapitalinwholly-ownedsubsidiaryChangchaiMachinerybyRMB291.8359millionthrougha"debt-to-capitalreserveconversion,"withtheentireamountrecordedascapitalsurplus.
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
2024
| 2024 | 2023 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 2,415,869,028.32 | 100% | 2,155,698,787.49 | 100% | 12.07% |
| Byoperatingdivision | |||||
| Internalcombustionengines | 2,371,931,691.41 | 98.18% | 2,110,376,920.43 | 97.90% | 12.39% |
| Other | 43,937,336.91 | 1.82% | 45,321,867.06 | 2.10% | -3.05% |
| Byproductcategory | |||||
| Dieselengines | 2,243,543,689.25 | 92.87% | 1,908,040,669.16 | 88.51% | 17.58% |
| Gasolineengines | 122,859,838.38 | 5.09% | 153,677,944.53 | 7.13% | -20.05% |
| Other | 49,465,500.69 | 2.05% | 93,980,173.80 | 4.36% | -47.37% |
| Byoperatingsegment | |||||
| Domestic | 2,059,623,002.73 | 85.25% | 1,778,018,604.18 | 82.48% | 15.84% |
| Overseas | 356,246,025.59 | 14.75% | 377,680,183.31 | 17.52% | -5.68% |
| Bymarketingmodel | |||||
Distribution
| Distribution | 961,865,962.18 | 39.81% | 754,228,779.91 | 34.99% | 27.53% |
| Directsales | 1,454,003,066.14 | 60.19% | 1,401,470,007.58 | 65.01% | 3.75% |
(2)OperatingDivision,ProductCategory,OperatingSegmentorMarketingModelContributingover10%ofOperatingRevenueorOperatingProfit
□Applicable√Notapplicable
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Internalcombustionengines | 2,371,931,691.41 | 2,084,092,192.19 | 12.14% | 12.39% | 12.12% | 0.21% |
| Byproductcategory | ||||||
| Dieselengines | 2,243,543,689.25 | 1,937,324,581.91 | 13.65% | 17.58% | 13.40% | 3.18% |
| Gasolineengines | 122,859,838.38 | 108,205,868.99 | 11.93% | -20.05% | -15.52% | -4.73% |
| Byoperatingsegment | ||||||
| Domestic | 2,059,623,002.73 | 1,780,283,448.38 | 13.56% | 15.84% | 17.02% | -0.87% |
| Overseas | 356,246,025.59 | 339,017,017.69 | 4.84% | -5.68% | -6.58% | 0.93% |
| Bymarketingmodel | ||||||
| Distribution | 961,865,962.18 | 837,305,962.65 | 12.95% | 27.53% | 24.02% | 2.47% |
| Directsales | 1,454,003,066.14 | 1,281,994,503.42 | 11.83% | 3.75% | 6.03% | -1.89% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
√Yes□No
| Operatingdivision | Item | Unit | 2024 | 2023 | Change(%) |
| Dieselengines | Unitsales | Unit | 477,592 | 478,280 | -0.14% |
| Output | Unit | 473,719 | 513,177 | -7.69% | |
| Inventory | Unit | 95,891 | 99,764 | -3.88% |
Anyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√Notapplicable
(4)ExecutionProgressofMajorSignedSalesandPurchaseContractsintheReportingPeriod
□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
Productcategory
| Productcategory | Item | 2024 | 2023 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| Dieselandgasolineengines | Rawmaterials | 1,594,081,880.39 | 77.93% | 1,458,317,249.89 | 77.39% | 9.31% |
| Laborcost | 230,255,452.63 | 11.26% | 225,056,024.38 | 11.94% | 2.31% | |
| Depreciation | 58,977,062.10 | 2.88% | 58,676,870.45 | 3.11% | 0.51% | |
| Energy | 25,209,330.48 | 1.23% | 24,344,615.38 | 1.29% | 3.55% | |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
□Yes√No
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
(8)MajorCustomersandSuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 1,177,094,563.31 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 48.72% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | CustomerA | 694,759,928.51 | 28.76% |
| 2 | CustomerB | 208,352,865.36 | 8.62% |
| 3 | CustomerC | 127,606,552.93 | 5.28% |
| 4 | CustomerD | 78,389,441.53 | 3.24% |
| 5 | CustomerE | 67,985,774.98 | 2.81% |
Total
| Total | -- | 1,177,094,563.31 | 48.72% |
Otherinformationaboutmajorcustomers:
□Applicable√NotapplicableMajorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 398,156,825.26 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 22.79% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 0.00% |
Informationabouttopfivesuppliers:
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | SupplierA | 128,079,527.00 | 7.33% |
| 2 | SupplierB | 103,700,959.42 | 5.94% |
| 3 | SupplierC | 70,755,470.41 | 4.05% |
| 4 | SupplierD | 53,533,925.01 | 3.06% |
| 5 | SupplierE | 42,086,943.42 | 2.41% |
| Total | -- | 398,156,825.26 | 22.79% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable
3.Expense
Unit:RMB
| 2024 | 2023 | Change(%) | Reasonforanysignificantchange | |
| Sellingexpense | 60,617,254.43 | 54,069,774.62 | 12.11% | |
| Administrativeexpense | 115,466,341.90 | 123,981,333.99 | -6.87% | |
| Financecosts | -23,423,038.69 | -11,284,676.92 | —— | Thisgrowthmainlyresultedfromincreasedinterestincomeandexchangegains. |
| R&Dexpenses | 83,401,477.60 | 90,339,104.33 | -7.68% |
4.R&DInvestments
√Applicable□Notapplicable
| MajorR&Dproject | Purpose | Progress | Specificobjectives | ExpectedimpactontheCompany |
4H11V16DieselEngineDevelopmentProject
| 4H11V16DieselEngineDevelopmentProject | Develophigher-performancedieselenginesthatmeetemissionrequirements | Inprogress | OptimizedieselengineperformancetomeetNon-RoadChinaStageIVemissionstandards. | Post-implementation,theupgradeddieselenginewillcomplywithNon-RoadChinaStageIVemissionstandards,withbroadandpromisingmarketapplicationprospects. |
| 4H13V16DieselEngineDevelopmentProject | Develophigher-performancedieselenginescompliantwithemissionregulations | Inprogress | Enhancedieselengineperformancetoeffectivelyreduceharmfulemissionsandpromoteenergyconservationandemissionreduction. | Uponprojectcompletion,theproductwillmeetNon-RoadChinaStageIVrequirements,advancingthecompany'snon-roadproducttechnologymaturitywhiledemonstratingexcellentmarketpotential. |
| 4G36V16ADieselEngineDevelopmentProject | Optimizeandupgradedieselengineperformancetomeetmarketdemand | Inprogress | Improveproductperformance,reachtheadvancedlevelofsimilarforeignproducts,andmeetemissionrequirements. | Aftertheimplementationoftheproject,theproductwillmeetmarketdemandandcomplieswiththeNon-RoadChinaStageIVemissionstandards,withbroadmarketprospectsinthefuture. |
| 4G33TCDieselEngineMatchingTractorDevelopmentProject | Develophigher-performance,energy-savingandemission-reducingdieselengines | Inprogress | Refinedieselengineperformancetoachievehigh-efficiencyoutputwithenergy-savingandemission-reducingbenefits. | Uponprojectcompletion,theproductwillmeettherequirementsofNon-RoadChinaStageIVemissionstandardsandmarketdemand. |
| L22ChinaStageIVDieselEngineDevelopmentProject | DevelopNon-RoadChinaStageIVmechanicalpumpenginesthatmeetemissionrequirementsandmarketdemand | Inprogress | Improveproductperformance,reachtheadvancedlevelofsimilarforeignproducts,andmeetemissionrequirements. | Uponprojectcompletion,theproductwillmeettherequirementsofNon-RoadChinaStageIVemissionstandards,theproducthasbroadmarketprospects. |
| L24CommonRailChinaStageIVDieselEngineOptimizationProject | Develophigher-performancedieselengineswithenergyconservationandemissionreduction | Inprogress | Upgradeengineperformancetoachievebest-in-classdomesticreliabilitywhilemeetingNon-RoadChinaStageIVemissionrequirements. | Uponprojectcompletion,theproductwillmeettherequirementsofNon-RoadChinaStageIVemissionstandardsandmarketdemand,theproducthasbroadmarketprospects. |
| 390 | Develop | In | Improveproduct | Aftertheimplementationofthe |
TurbochargedDieselEngineDevelopment
| TurbochargedDieselEngineDevelopment | higher-performancedieselengineswithenergyconservationandemissionreduction | progress | performance,reachtheadvancedlevelofsimilarforeignproducts,andmeetemissionrequirements. | project,theproductwillmeettheemissionrequirements,haveacleartargetmarketpositioningandbroadmarketprospects. |
| 4L88ChinaStageIVDieselEngineDevelopment | Develophigh-efficiency,environmentally-friendlydieselenginesmeetingemissionrequirements | Inprogress | Improveproductperformance,andmeetemissionrequirements. | Post-projectproductswillmaintainexistingOEMapplicationcompatibilitywhileexpandingmarketopportunities. |
| MiningPickupTruckEngineDevelopment | Develophigher-performanceminingpickupengineswithenergyconservationandemissionreduction | Inprogress | Improveproductperformance,meetnonroadnationalemissionregulationsandrelatedrequirements,andachieveleadingdomesticindicators. | Aftertheimplementationoftheproject,thecompany'sproductlinewillbefurtherexpandedtomeetemissionrequirementsandhavebroadmarketprospects |
| 178FAAir-CooledChinaStageIVDieselEngineDevelopment | Develophigh-efficiency,energy-savingdieselenginescompliantwithemissionstandards | Inprogress | Improveproductperformance,reachtheadvancedlevelofsimilarforeignproducts,andmeetemissionrequirements. | Aftertheimplementationoftheproject,theproductwillmeetmarketdemand,complywithenergy-savingandenvironmentalprotectionpolicies,andhavebroadmarketprospects. |
| L12Water-CooledChinaStageIVDieselEngineDevelopment | Develophigh-efficiency,eco-friendlyandenergy-efficientsingle-cylinderdieselengines | Inprogress | EnhanceproductreliabilityandenergyefficiencywhilemeetingStageIVemissionregulations. | Implementationwillexpandproductapplications,enrichtechnicalreserves,andmeetbothregulatoryandmarketdemands. |
| 3M82DieselEngineDevelopmentProject | Develophigher-performancedieselenginessatisfyingemissionstandards | Completed | Improveproductperformance,reachtheadvancedlevelofsimilarforeignproducts,andmeetemissionrequirements. | Uponprojectcompletion,theproductwillmeettherequirementsofNon-RoadChinaStageIVemissionstandards,theproducthasbroadmarketprospects. |
| Developmentof173FAAir-CooledChinaIVDieselEngine | Developmentofhigh-efficiency,energy-savingdieselenginesthatmeetemissionrequirements | Completed | Improveproductperformancemetrics,achieveenergy-savingandemissionreduction,andcomplywiththeNon-RoadChinaIVemissionstandards. | Uponprojectcompletion,theproductswillmeetmarketdemand,complywithenergy-savingandenvironmentalprotectionpolicies,anddemonstratebroadmarketprospects. |
MechanicalPumpSingle-CylinderDieselEngineNon-RoadChinaStageIVDevelopmentProject
| MechanicalPumpSingle-CylinderDieselEngineNon-RoadChinaStageIVDevelopmentProject | Develophigher-performancemechanicalpumpsingle-cylinderdieselenginesmeetingNon-RoadChinaStageIVemissionrequirements | Completed | Improvepowerperformance,fueleconomy,servicelifeandNon-RoadChinaStageIVcompliance. | Uponprojectcompletion,theproductwillmeettherequirementsofNon-RoadChinaStageIVemissionstandardsandmarketdemand. |
| 4G29DieselEngineDevelopmentProject | Develophigher-performancedieselenginesconformingtoemissionregulations | Completed | ElevateallperformancemetricstodomesticadvancedlevelswhilesatisfyingNon-RoadChinaStageIVstandards. | UpgradedengineswillachieveNon-RoadChinaStageIVcertification,advancingthecompany'stechnologicalcapabilitiesinthissector. |
| MotorcycleTricycleSpecializedDieselEngineDevelopmentProject | Developlightweightsingle-cylinderwater-cooledhigh-speeddieselengines | Completed | Improveproductperformance,reachtheadvancedlevelofsimilarforeignproducts,andmeetemissionrequirements. | Uponprojectcompletion,theproductwillenrichthecompany'sproducts,furtherexplorethepowermarket,andmeetemissionregulations. |
DetailsaboutR&Dinvestments:
| 2024 | 2023 | Change(%) | |
| NumberofR&Dpersonnel | 214 | 225 | -4.89% |
| R&Dpersonnelas%oftotalemployees | 8.84% | 8.74% | 0.10% |
| EducationalbackgroundofR&Dpersonnel | |||
| Bachelor’sdegree | 91 | 96 | -5.21% |
| Master’sdegree | 9 | 6 | 50.00% |
| AgestructureofR&Dpersonnel | |||
| Below30 | 17 | 31 | -45.16% |
| 30~40 | 81 | 77 | 5.19% |
DetailsaboutR&Dinvestments:
| 2024 | 2023 | Change(%) | |
| R&Dinvestments(RMB) | 83,401,477.60 | 90,339,104.33 | -7.68% |
| R&Dinvestmentsas%ofoperatingrevenue | 3.45% | 4.19% | -0.74% |
| CapitalizedR&Dinvestments(RMB) | 0.00 | 0.00 | —— |
CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments
| CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 0.00% | 0.00% | —— |
ReasonsforanysignificantchangeinthecompositionofR&Dpersonnelandtheimpact:
□Applicable√NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dexpenseinoperatingrevenue:
□Applicable√NotapplicableReasonsforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
| Item | 2024 | 2023 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 2,325,383,619.26 | 2,169,305,862.90 | 7.19% |
| Subtotalofcashusedinoperatingactivities | 2,479,676,587.96 | 2,032,116,035.55 | 22.02% |
| Netcashgeneratedfrom/usedinoperatingactivities | -154,292,968.70 | 137,189,827.35 | —— |
| Subtotalofcashgeneratedfrominvestingactivities | 1,206,915,907.12 | 1,197,150,475.33 | 0.82% |
| Subtotalofcashusedininvestingactivities | 1,198,878,172.96 | 1,044,165,754.31 | 14.82% |
| Netcashgeneratedfrom/usedininvestingactivities | 8,037,734.16 | 152,984,721.02 | -94.75% |
| Subtotalofcashgeneratedfromfinancingactivities | 94,412,090.20 | 0.00 | —— |
| Subtotalofcashusedinfinancingactivities | 33,168,340.22 | 131,365,400.07 | -74.75% |
| Netcashgeneratedfrom/usedinfinancingactivities | 61,243,749.98 | -131,365,400.07 | —— |
| Netincreaseincashandcashequivalents | -78,947,638.62 | 161,278,557.41 | —— |
Explanationofwhyanyofthedataabovevariessignificantly:
√Applicable?NotapplicableThesignificantyear-on-yearfluctuationinnetcashflowfromoperatingactivitieswasprimarilyattributabletoextendedpaymenttermsgrantedtomostoftheCompany'smulti-cylinderenginecustomers(OEMsuppliers),coupledwithincreasedmarketexpansionexpendituresforemission-standardupgradedproducts,resultinginslowercashcollectionandrelativelyhigherprocurementpaymentstosuppliersduringthereportingperiod.Thematerialchangeinnetcashflowfrominvestingactivitieswasmainlyduetoincreasedinvestmentsinwealthmanagementproductsduringthereportingperiod.Thesubstantialvariationinnetcashflowfromfinancingactivitiesprincipallyarosefromthediscountingofbankacceptancebillswithlowercreditratingsduringthereportingperiod,asnosuchactivitieswereconductedinthepreviousperiod.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod
√Applicable?NotapplicableThesignificantvariancebetweentheCompany'snetcashflowfromoperatingactivitiesanditsnetprofitforthereportingperiodwasprimarilyattributableto(i)theimpactoffairvaluechangesinfinancialassetsheldbytheCompanyoncurrent-periodearnings,and(ii)increasedprocurementpaymentsmadetosuppliersduringthereportingperiod.VAnalysisofNon-CoreBusinesses
√Applicable?Notapplicable
Unit:RMB
Amount
| Amount | As%ofgrossprofit | Source | Recurrentornot | |
| Returnoninvestment | 24,265,851.27 | 158.01% | Theincreasewasprimarilyattributabletodividendsreceivedfromequityholdingsandinvestmentincomegeneratedfromcashmanagementactivities. | Yes |
| Gains/lossesonchangesinfairvalue | -65,938,196.89 | -429.38% | Duringthereportingperiod,thefairvalueoftheCompany'sequityinterestinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.declined,andthesharepricesofJiangsuLianceElectromechanicalTechnologyCo.,Ltd.andKailongHigh-TechCo.,Ltd.,heldbywholly-ownedsubsidiaryHorizonInvestment,decreasedcomparedtothebeginningoftheperiod. | No |
| Assetimpairmentloss | -14,403,371.83 | -93.79% | No | |
| Non-operatingincome | 2,838,603.42 | 18.48% | No | |
| Non-operatingexpense | 886,507.69 | 5.77% | No | |
| Assetdisposalincome | 304,377.71 | 1.98% | No |
VIAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 31December2024 | 1January2024 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| CashandCashEquivalents | 1,063,700,492.59 | 19.76% | 1,083,867,966.87 | 21.01% | -1.25% | |
Accountsreceivable
| Accountsreceivable | 444,254,240.02 | 8.25% | 316,543,159.91 | 6.14% | 2.11% | TheprimaryreasonswerethatmostoftheCompany'smulti-cylinderenginecustomersareOEMsupplierswithrelativelylongerpaymentterms.Meanwhile,duetoproductemissionupgrades,theCompanyintensifiedmarketexpansioneffortsduringthereportingperiodandappropriatelyextendedcreditterms,resultinginasignificantincreaseinaccountsreceivable. |
| Inventories | 819,201,998.42 | 15.22% | 789,220,185.68 | 15.30% | -0.08% | |
| Investmentproperty | 37,740,844.55 | 0.70% | 39,837,558.11 | 0.77% | -0.07% | |
| Fixedassets | 615,414,505.40 | 11.43% | 675,596,920.95 | 13.09% | -1.66% | |
| Constructioninprogress | 3,376,866.69 | 0.06% | 4,275,622.18 | 0.08% | -0.02% | |
| Short-termborrowings | 94,471,787.41 | 1.76% | 0.00 | 0.00% | 1.76% | ThevariancewasprincipallyattributabletotheCompany'sdiscountingofbankacceptancebillswithlowercreditratingsduringthereportingperiod,asnosuchtransactionswereconductedinthepreviousperiod. |
| Contractliabilities | 31,640,879.59 | 0.59% | 33,352,877.66 | 0.65% | -0.06% |
Indicatewhetheroverseasassetstakeupahighpercentageintotalassets.
□Applicable√Notapplicable
2.AssetsandLiabilitiesatFairValue
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | ImpairmentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchange | Endingamount |
| Financialassets | ||||||||
| 1.Held-for-tradingfinancialassets(derivativefinancialassetsexclusive) | 225,641,429.94 | -33,023,970.29 | 0.00 | 0.00 | 1,179,550,000.00 | 1,068,500,000.00 | 0.00 | 303,667,459.65 |
| 2.Investmentinotherequityinstruments | 969,488,025.67 | 0.00 | 756,550,058.72 | 0.00 | 0.00 | 0.00 | 0.00 | 941,120,058.72 |
| Subtotaloffinancialassets | 1,195,129,455.61 | -33,023,970.29 | 756,550,058.72 | 0.00 | 1,179,550,000.00 | 1,068,500,000.00 | 0.00 | 1,244,787,518.37 |
| Other | 453,688,086.55 | -35,045,359.31 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 377,869,217.49 |
| Totalofabove | 1,648,817,542.16 | -68,069,329.60 | 756,550,058.72 | 0.00 | 1,179,550,000.00 | 1,068,500,000.00 | 0.00 | 1,622,656,735.86 |
| Financialliabilities | 0.00 | 0.00 | ||||||
Contentsofotherchange:N/ASignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-End
Unit:RMB
| Item | Attheperiod-end | Reasonforrestriction |
| Monetaryassets | 171,018,607.75 | Bankacceptancebillguaranteedeposits、Letterofguaranteedeposits、Performancebonddeposits、Termdepositsandaccruedinterest |
| Notesreceivable | 70,878,200.00 | Paymentobligationsforundiscountedbutdiscountedbills |
Notesreceivable
| Notesreceivable | 163,858,135.20 | Paymentobligationsforundiscountedbuttransferredbills |
VIIInvestmentsMade
1.TotalInvestmentAmount
√Applicable□Notapplicable
| InvestmentsmadeinReportingPeriod(RMB) | Investmentsmadeinsameperiodoflastyear(RMB) | +/-% |
| 291,835,919.91 | 7,170,000.00 | 3,970.24% |
TheCompanyincreaseditscapitalcontributioninitswholly-ownedsubsidiaryJiangsuChangchaiMachineryCo.,Ltd.byRMB291,835,919.91(includingunpaidloaninterestofRMB4,958,090.18)througha"debt-to-capitalreserve"arrangement,withtheentireamountbeingrecordedascapitalreserve.
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Unit:RMB
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingamount | Gain/lossonfairvaluechangesintheReportingPeriod | Accumulatedfairvaluechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingamount | Accountingtitle | Fundingsource |
| Domestic/foreignstock | 600166 | FotonMotor | 41,784,000.00 | Fairvaluemethod | 394,485,000.00 | 0.00 | 320,911,000.00 | 0.00 | 0.00 | 0.00 | 362,695,000.00 | Investmentinotherequity | Self-funded |
instruments
| instruments | |||||||||||||
| Domestic/foreignstock | 600919 | BankofJiangsu | 42,786,000.00 | Fairvaluemethod | 156,546,000.00 | 0.00 | 187,002,000.00 | 0.00 | 0.00 | 18,163,080.00 | 229,788,000.00 | Investmentinotherequityinstruments | Self-funded |
| Domestic/foreignstock | 300912 | KailongHighTechnology | 20,001,268.00 | Fairvaluemethod | 18,119,861.00 | -6,549,711.00 | 0.00 | 0.00 | 0.00 | -6,549,711.00 | 11,570,150.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 688113 | LianceTechnology | 7,200,000.00 | Fairvaluemethod | 66,873,600.00 | -26,164,800.00 | 0.00 | 0.00 | 0.00 | -23,864,413.59 | 40,708,800.00 | Held-for-tradingfinancialassets | Self-funded |
| Domestic/foreignstock | 605368 | LantianGas | 160,744.76 | Fairvaluemethod | 301,560.00 | 18,480.00 | 0.00 | 0.00 | 0.00 | 58,577.36 | 320,040.00 | Held-for-tradingfinancialassets | Self-funded |
| Total | 111,932,012.76 | -- | 636,326,021.00 | -32,696,031.00 | 507,913,000.00 | 0.00 | 0.00 | -12,192,467.23 | 645,081,990.00 | -12,192,467.23 | -- | ||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofRaisedFunds
□Applicable√NotapplicableDuringthereportingperiod,theCompanydidnothaveanyutilizationofraisedcapital.VIIISaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√NotapplicableIXMajorSubsidiaries
√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
Name
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChangchaiBenniu | Subsidiary | Productionofdieselengineaccessories | 55,063,000.00 | 167,733,258.21 | 67,329,303.86 | 197,317,344.78 | -9,939,698.59 | -9,624,659.68 |
| ChangchaiWanzhou | Subsidiary | Dieselengineassembly | 85,000,000.00 | 66,453,054.91 | 51,118,130.95 | 40,738,284.52 | 827,260.03 | 679,056.41 |
| HorizonInvestment | Subsidiary | Externalinvestment | 40,000,000.00 | 76,280,278.94 | 69,299,925.93 | 0.00 | -30,041,548.20 | -22,323,511.82 |
andconsulting
| andconsulting | ||||||||
| HorizonAgriculturalEquipment | Subsidiary | agriculturalmachineryproductofricetransplanteretc. | 10,000,000.00 | 657,162.26 | -16,245,594.49 | 2,016,906.93 | -483,407.44 | -242,516.86 |
| ChangchaiRobin | Subsidiary | Gasolineenginesassembly | 37,250,000.00 | 124,877,704.42 | 106,160,750.36 | 127,473,497.67 | 6,480,470.70 | 5,921,004.60 |
| ChangchaiMachinery | Subsidiary | Internalcombustionengineandrelatedaccessories | 300,000,000.00 | 807,891,051.24 | 510,083,511.24 | 863,773,492.51 | 721,291.82 | 102,653.19 |
| XingshengRealEstateManagement | Subsidiary | Realestatemanagementservice | 1,000,000.00 | 3,561,461.17 | 1,967,999.30 | 3,102,209.12 | 526,235.32 | 508,897.27 |
| ZhenjiangSiyang | Subsidiary | Manufacturingandmarketingofdieselenginesforships | 2,000,000.00 | 127,544,513.83 | 110,945,413.11 | 69,479,046.40 | 12,926,717.65 | 11,482,443.77 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
□Applicable√NotapplicableOtherinformationaboutprincipalsubsidiariesandjointstockcompanies:
1.EquityOwnershipandControlofZhenjiangSiyangAsoftheendofthereportingperiod,theCompanyholdsa49%equityinterestinZhenjiangSiyang,makingitthelargestshareholder.Giventhatothershareholdersarehighlydispersed,andconsideringthat4outof7boardseats(includingtheChairman)areappointedbytheCompany,theCompanyexercisesactualcontroloverZhenjiangSiyang.Accordingly,ZhenjiangSiyangmeetsthecriteriaforconsolidationunderapplicableaccountingstandards.
2.AcquisitionofRemainingStakeinHorizonAgriculturalEquipment(HorizonAgriculturalEquipment)InJune2024,theCompanyacquiredtheremaining25%equityinterestinHorizonAgriculturalEquipmentfromHorizonInvestment.Asofthereportingperiodend,theCompanynowholds100%OwnershipofHorizonAgriculturalEquipment.
XStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableXIProspects
1.DevelopmentstrategyoftheCompanyTheCompany’sdevelopmentstrategyistobaseonfarmmachinery,becomestrongerintheenginebusiness,exploremoremarketsanddevelopinascientificway.Thecomprehensivenationalpoliciesonruralrevitalizationandaccelerateddevelopmentofanagriculturalpowerhousewillgeneratesignificantpositiveimpactsontheindustry.TheCompanywillfullycapitalizeonpolicydividendsfromthegovernment'sstrongsupportforagriculturalproductionandfarmmachinerydevelopment.Wewillsteadfastlyadvance:
(1)AcceleratingTechnologicalUpgradesandMarketExpansionforExistingProductsFirst,theCompanywillprioritizetheoptimizationandenhancementofitscoreproducts.1）ByaligningwithmarketdemandandleveragingtheCompany'scompetitiveproductsandtechnologies,wewillstabilizesupplysharewithmajorOEMpartnersforsingle-cylinderengines,increasemarketpenetrationinkeyindustrialclusters,tapintohigh-potentialsalesregions,andconsolidateourindustryleadershipposition.Formulti-cylinderengines,wewillaccelerateproductoptimizationandupgrades,expediteR&Dandcommercializationofpolicy-compliantnewproducts,enhanceprofitabilityofexistingproducts,expandproductlineofferings,strengthensupportingservicesincoremarketsegments,andincreasemarketshareinspecializedapplications.2）Tomeetoverseasmarketdemands,wewillinnovativelyupgradeexistingproducttechnologiesanddevelopexport-orientedmodelswithenhancedreliabilityandsuperiorperformance.LeveragingOEMpartners'globaldistributionchannels,wewillexpandourinternationalmarketpresence.Throughoptimizedresourceallocationandsynergies,weaimtoimproveoverallexportefficiency,enhancemarketservicequality,andactivelyincreasecustomersatisfaction.Second,wewillfocusonvaluechainextensionbydevelopingpremiumproductofferings.1）TheCompanywillcontinuetooptimizeitspowerunitproductsanddistributionnetwork,pursuingpremiumandspecializeddevelopmentinnichemarketstomoveupthevaluechain.Thisincludesexpandingapplicationsinspecializedvehicles,UAVcropprotection,stationarypower,andtelecommunicationsmarkets.OurindependentlydevelopedintegratedUAVchargingsystemhasbeenlaunchedwithpositivemarketfeedback.2）Alignedwiththeindustrytrendsofelectrification,connectivity,andintelligentlyinagriculturalmachinery,theCompanyisintegratingadvancedtechnologiesincludingInternetofThings(IoT),bigdataanalytics,artificialintelligence,andnewmaterialsintoproductdevelopment.Theseinnovationsenhanceintelligentcontrolsystems,real-timemonitoringcapabilities,andbigdatacollection/analysisfunctionsindieselengines,therebyincreasingproductvalue-addedfeaturesandbettermeetingend-userrequirements.Third,wewillextenditsmarketreachtowardend-userapplications.TheCompany'scoreproductsconsistofsmall-to-mediumpowerdieselenginesandgeneral-purposegasolineengines,primarilyservingoff-roadapplicationsincludingagriculturalmachinery,cropprotectionequipment,constructionmachinery,andmarineengines.WeareintensifyingR&Deffortsandmarketpenetrationingeneratorsets,outboardmotors,coldchainsystems,fishingvessels,andtelecommunicationtowerapplications.ThroughoursubsidiaryZhenjiangSiyang,wecontinuetooptimizeourmarineenginebusinessstructureand
strengthencollaborativepartnershipstoensuresustainabledevelopment.Ongoingimprovementstoouroutboardmotorpowerplatformsinclude:
?Establishingcomprehensivedomesticandinternationalsalesnetworks?Continuousproductoptimizationbasedonmarketdemandandfeedback?Expandingproductlineofferings?Enhancingoverallbusinessstructure.
(2)DrivingIndustrialTransformationThroughNewEnergyIntegrationWhiletherapidadvancementofnewenergytechnologieshasimpactedtraditionalpowersystemsincertainapplications,creatingsubstitutionrisks,long-termopportunitiesforconventionalenginesremain.Leveragingourexpertiseinlight-dutypowersolutions,weare:
?ExpandingNewEnergyProductLines:Developinghybridpowersystemsandadvancingtheirintegrationacrossmultipledownstreamapplications?AcceleratingAlternativeFuelR&D:Intensifyingeffortsinhydrogencombustiontechnologyandothercleanenergysolutions?StrengtheningIndustryCollaboration:Buildingstrategicpartnershipswithgreentechnologyproviders
toenhancemarketpenetration
2.2025OperationalPlanStrengthenourpositioninthetraditionalagriculturalmachinerymarketwhileexpandingintoemergingpowersegments.Wewillenhanceproductqualitytosolidifyourcorecompetitiveness,drivecontinuousinnovationtoboostvitality,implementleanmanagementtoimproveefficiency,andoptimizeresourceallocationforhigh-performanceoperations.TheCompanytargetsRMB2.4billioninsalesrevenuefor2025,includingUSD55millioninexportrevenue.
3.PotentialRisksandtheCompany'sCountermeasures
(1)MarketRisksTheagriculturalmachineryindustryhasenteredaperiodofdeepadjustmentdominatedbyoptimizationandupgrading.Duetotheimpactofnationalequipmentpurchasesubsidypolicies,industrialdevelopmentpolicies,andenvironmentalregulations,thetraditionalproductmarketisdeclining,competitionintheexistingmarketisintensifying,andtheindustryismovingtowardhigh-endandintelligentdevelopment.MostcompaniesarecontinuouslystrengtheningproductR&Dandoptimizationinlinewithmarketdemand,increasingmarketmaintenanceandexpansionefforts.WiththefullmarketentryofChinaIVemissionstandardproducts,industrycompetitionhasfurtherintensified.Countermeasures:First,closelyfollowpolicyguidance,optimizeproductstructure,adheretotheprincipleofprofitablesales,andstrengthenbothdomesticandinternationalmarkets.Second,focusonmarketdemand,accelerateproductR&Dandinnovation,consolidatetraditionalsupportingfields,makefurtherbreakthroughsinadvantageousareas,andexpandproductapplicationsinhigh-endindustrialchainmarkets.Third,enhanceinnovationawareness,activelypromotetheapplicationofadvancedtechnologiessuchasinternet,bigdata,artificialintelligence,andnewmaterials,acceleratethedevelopmentofsmartterminalsandhybridpowersystems,andbuildnewcompetitiveadvantages.Fourth,aimforqualityimprovementandefficiencyenhancement,strengtheninternalandexternalqualityresponsibilities,andimprovecorporategovernanceandoperationalefficiency.Fifth,emphasizetalentdevelopment,usehumanresourcesassupport,andpromoteefficientinternalcollaboration.
(2)IndustryRisks
Theadvancementofnewenergyapplicationtechnologiesandrelatedpolicieshaspromptedenterprisestoaccelerateresearch,application,andmarketdeploymentinnewenergypowersystems,whichhasaffectedthemarketshareofdieselenginesincertainsupportingfieldstosomeextent.Currently,newenergypowersystemsstillfacechallengessuchashighcostsandcomplexoperatingenvironmentsinagriculturalmachineryapplications.However,withcontinuousbreakthroughsinnewenergytechnologies,someapplicationscenariosofnon-roaddieselenginesmaybereplacedbynewenergypowersystems.Countermeasures:First,developproductsthatcomplywithnationalenergyconservationandemissionreductionpolicies,optimizeandupgradeproductlinesaccordingtomarketdemand,strengthentheapplicationofartificialintelligenceandnewmaterials,enhanceproductaddedvalueandcompetitiveness,andconsolidatemarketadvantages.Second,acceleratetheresearchanddevelopmentofnewenergypowersystems,leveragethecompany'sadvantagesinlight-dutypowersystemstoexpandnewenergyhybridproductsandsupportingfields,andpromotesustainablecorporatedevelopment.Third,maintaincoordinateddevelopmentbetweenproductoperationsandcapitaloperations,focusonemergingindustries,andutilizecapitalmarketstoacceleratethepaceofexternalexpansion.
(3)InternationalTradeRisksInrecentyears,thegloballandscapehasbecomeincreasinglycomplex,withfrequentgeopoliticalconflictsandinternationaltradedisputes.Thesedevelopmentshaveseverelyimpactedregionalpoliticsandsecurity,globaleconomicrecovery,foodandenergysecurity,andecologicalenvironments,leadingtovaryingdegreesofinfluenceonforeigntradepoliciesworldwide.Significantchangesinthepoliticalstabilityortradepoliciesofoverseasmarketscouldsubstantiallyaffectourexportsales.Countermeasures:First,enhancecollaborativeservicecapabilitiesthroughcomplementarysharingofinternal/externalresources,information,andproductstodriveincrementalmarketdemandandimproveoveralltradeefficiency.Second,innovateandadaptproductsaccordingtooverseasmarketneeds,expandingpromotionofhigh-performanceproductsandnewapplicationsolutions.Third,cultivatekeymarketsbyleveragingoverseasdistributionchannelsofdownstreamOEMs,strengtheninglocalservicepersonneltraining,servicecapacitybuilding,andauthorizedoverseasservicestations.
(4)ExchangeRateRisksRecentyearshaveseengrowingchallengesanduncertaintiesintheglobalpoliticalandeconomicenvironment,withincreasedvolatilityinexchangerates.Asourproductsarewidelyexported,currencyfluctuationsmayadverselyaffectsales.Countermeasures:First,closelymonitorexchangeratemovements,selectingoptimalcurrenciesforpricing/settlementwhilemitigatingrisksthroughpaymentmethodadjustmentsandexportcreditinsurance.Second,implementtimelymeasureslikeproductpriceadjustmentsandrevisedpaymenttermstoaddressexchangerateandmaterialcostfluctuations.Third,enhanceproductandservicecompetitivenesstoreducetheimpactofcurrencyvolatilityonsales.
(5)RawMaterialPriceVolatilityRiskThemarketpricesofrawmaterialsaresubjecttofluctuationsduetomacroeconomicconditions,productioncapacity,anddemandchanges.Pricevolatilityofkeyinputssuchassteelandpigironwillincreaseourmanufacturingcostsandimpactcorporateprofitability.Countermeasures:First,wewillstrengtheninternalmanagementthroughtechnologicalimprovementsandenhancedcostcontrolmeasurestooptimizeworkflowsandimproveproductionefficiency.Second,wewillcontinueimplementingsupplyassuranceinitiativestobuildastable,efficientandreliablesupplysystem.Third,wewillcloselymonitormarkettrendsandstrengtheninventorymanagementtomitigatetheadverseimpactsof
rawmaterialpricefluctuations.
(6)TalentRiskTalentisoneofthekeyfactorsfortheCompany'sdevelopment.Werequiretalentedpersonneltoenhanceoperationalefficiencyandacceleratedevelopment.IftheCompany'scompensationpoliciesandtalentincentivemechanismsareinadequate,itmayleadtoinsufficienthigh-levelmanagementandtechnicaltalents,aswellasalackoftalentreserves,ultimatelyaffectingR&Dinnovationcapabilitiesandcorecompetitiveness.Countermeasures:First,inaccordancewiththeCompany'sdevelopmentplanandactualoperationalneeds,wewillcontinuouslyimprovetalentrecruitmentmechanismsandtalentcultivationsystems,optimizeworkforcestructure,andcomprehensivelyenhanceoverallemployeequality.Second,basedonbusinessdevelopmentrequirements,wewillconsistentlyupgradeemployees'professionalcapabilitiesthroughsystematictrainingprograms.Third,wewillrefinetalentincentivemethodsandperformanceevaluationsystems,acceleratetherejuvenationofmanagementteams,andimproveoverallhumanresourcecontributionefficiency.Fourth,wewillstrengthentheemployeerepresentativecongresssystemandunionservicestocreateaharmoniousdevelopmentenvironmentandenhanceemployees'senseofbelongingandwell-being.XIICommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviewsduringtheReportingPeriod
√Applicable□Notapplicable
Dateofvisit
| Dateofvisit | Placeofvisit | Wayofvisit | Typeofvisitor | Visitor | Contentsandmaterialsprovided | Indextomaininquiryinformation |
| 23April2024 | Onlinemeeting | Onlineexchange | Other | Investorsandthepublic | TheCompany’sproductionandoperation,developmentandconstruction,investmentandwealthmanagement,etc. | Informationon000570Changchai’sResultsPresentationandRoadshowonwww.cninfo.com.cndated23April2024 |
XIIIImplementationofMarketValueManagementSystemandValuationEnhancementPlanIndicatewhethertheCompanyhasdisclosedtheMarketValueManagementSystem
□Yes√NoIndicatewhethertheCompanyhasdisclosedtheValuationEnhancementPlan
□Yes√NoXIV.ImplementationStatusofthe"DualEnhancementofQualityandReturns"InitiativeIndicatewhethertheCompanyhasdisclosedthe“QualityandEarningsDualImprovement”ActionPlan.
□Yes√No
PartIVCorporateGovernance
IGeneralInformationofCorporateGovernanceIntheReportingPeriod,theCompanywasstrictlyinlinewithlaws,statutessuchasCompanyLaw,SecuritiesLaws,CodeofCorporateGovernanceofListedCompanies,GuideOpiniononEstablishmentofIndependentDirectorSystembyListedCompaniesandGuidelinesonInternalControlsofListedCompaniesandsoon,continuouslyperfectedcorporategovernance,establishedandaccomplishedinternalmanagementandcontrolsystem,consistentlyanddeeplyputforwardcorporategovernanceactivities,soastofurthernormalizedoperationoftheCompany,raisingcorporategovernancelevel,layingaguardforsteadyandhealthydevelopmentoftheCompany,protectlegalrightsandinterestsoftheCompanyandallshareholders.TheCompanypromulgatedorrevisedaseriesofinternalcontrolsystemthroughallaspectsofnormaloperationandmanagementactivitiesinaccordancewitheachnationallawsandregulations,characteristicsoftheindustry,operationandself-managingbusiness,andimproveditcontinuously,andfinallyformedanormativemanagementsystem.Andformulatedaseriesofmanagementsystem,processandstandardcoveredeachoperationlinkandlevelofthefinancialassetscontrol,humanresourcesmanagement,qualityenvironmentmanagementandinternalauditsupervisoretc.,whichensuredalltheworkhadrulestofollow.Indicatebytickmarketwhetherthereisanymaterialincompliancewiththeapplicablelaws,administrativeregulationsandregulationsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.IITheCompany’sIndependencefromItsControllingShareholderandActualControllerinAsset,Personnel,FinancialAffairs,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:TheCompanyhasanindependentandcompletebusinesssystemwithindependentandautonomousproductionandoperationalcapability.TheCompanyconductsrelatedtransactionsreasonablyontheprincipleofindependence.IIIHorizontalCompetition
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
Meeting
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Resolution |
| The2023AnnualGeneralMeeting | AnnualGeneralMeeting | 32.34% | 8May2024 | 9May2024 | Allproposalswereapproved.SeeAnnouncementNo.2024-016onResolutionsofthe2023AnnualGeneralMeeting. |
| The1stExtraordinaryGeneralMeetingof2024 | ExtraordinaryGeneralMeeting | 32.58% | 30July2024 | 31July2024 | Allproposalswereapproved.SeeAnnouncementNo.2024-024onResolutionsofthe1stExtraordinaryGeneralMeetingof2024. |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√NotapplicableVDirectors,SupervisorsandSeniorManagement
1.GeneralInformation
| Name | Gender | Age | Officetitle | Incumbent/Former | Startoftenure | Endoftenure | Beginningshareholding(share) | +/-(share) | Endingshareholding(share) |
| LiDesen | Male | 43 | ChairmanoftheBoard | Incumbent | 12June2023 | 1January2025 | 0 | 0 | 0 |
| ZhangXin | Male | 58 | ViceChairmanoftheBoard | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| Xie | Male | 55 | Director | Incum | 12June2023 | Ongoin | 0 | 0 | 0 |
Guozhong
| Guozhong | GeneralManager | bent | g | ||||||
| TanJie | Female | 45 | Director | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| JiangHe | Male | 52 | Director | Incumbent | 16April2020 | Ongoing | 0 | 0 | 0 |
| ChiefAccountant | |||||||||
| YangFeng | Male | 52 | Director | Incumbent | 16April2020 | Ongoing | 0 | 0 | 0 |
| WangMancang | Male | 61 | Independentdirector | Incumbent | 16April2020 | Ongoing | 0 | 0 | 0 |
| ZhangYan | Female | 54 | Independentdirector | Incumbent | 16April2020 | Ongoing | 0 | 0 | 0 |
| JiaBin | Male | 46 | Independentdirector | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| NiMingliang | Male | 57 | ChairmanoftheSupervisoryCommittee | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| ShiXingyu | Female | 44 | Supervisor | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| LuZhonggui | Male | 57 | Supervisor | Incumbent | 18October2016 | Ongoing | 0 | 0 | 0 |
| LiuYi | Male | 55 | Supervisor | Incumbent | 18October2016 | Ongoing | 0 | 0 | 0 |
| LinWei | Male | 42 | Supervisor | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| SunJianzhong | Male | 52 | Vice-generalManager | Incumbent | 16April2020 | Ongoing | 0 | 0 | 0 |
| HeJianjiang | Male | 45 | Vice-generalManager | Incumbent | 13December2021 | Ongoing | 0 | 0 | 0 |
| SecretaryoftheBoard | 18October2016 | ||||||||
| WangJing | Male | 37 | Vice-generalManager | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| WangWeifeng | Male | 53 | ChiefEngineer | Incumbent | 12June2023 | Ongoing | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 0 | 0 | 0 |
DisclosuresonDeparturesofDirectors,Supervisors,andDismissalsofSeniorManagementDuringtheReportingPeriod
□Yes√NoChangesintheCompany'sDirectors,SupervisorsandSeniorManagement
□Applicable√Notapplicable
2.BiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,
supervisorsandseniormanagement:
LiDesen:PreviouslyservedasDirectoroftheOfficeofQishuyanRailTransitIndustrialParkManagementCommittee,DeputySecretaryoftheQishuyanSubdistrictPartyWorkingCommitteeandDirectoroftheSubdistrictOffice,DirectoroftheFinancialDevelopmentBureauofChangzhouEconomicDevelopmentZone,DeputyDirectorandPartyLeadershipGroupMemberofChangzhouLocalFinancialSupervisionBureau,StandingCommitteeMemberofWujinDistrictCommitteeofChangzhou,MinisteroftheUnitedFrontWorkDepartment,DeputyDistrictChiefandPartyLeadershipGroupMemberoftheDistrictGovernment,DeputySecretaryofthePartyLeadershipGroupoftheDistrictPoliticalConsultativeConference,ChairmanoftheBoardofDirectorsandPartyCommitteeSecretaryofChangzhouInvestmentGroupCo.,Ltd.,andPartyCommitteeSecretaryandChairmanoftheBoardofDirectorsoftheCompany.CurrentlyservesasDeputySecretaryandDistrictChiefofChangzhouZhonglouDistrict.(OnJanuary1,2025,Mr.LiDesenresignedfromhispositionsasChairmanoftheBoard,Director,ChairmanandMemberoftheBoardStrategyCommittee,andMemberoftheBoardRemunerationandAppraisalCommitteeoftheCompanyduetoworkreassignment.Followinghisresignationfromtheabovepositions,Mr.LiDesennolongerholdsanyotherpositionsintheCompany.)
ZhangXin:PreviouslyservedasManageroftheCompany'sSalesCompany,AssistantGeneralManager,DeputyGeneralManager,andGeneralManager.CurrentlyservesasViceChairmanoftheBoardofDirectorsoftheCompany,actingonbehalfoftheChairman'sduties.XieGuozhong:PreviouslyservedasGeneralManager,AssistantGeneralManager,andDeputyGeneralManageroftheCompany'sSalesCompany.CurrentlyservesasDeputySecretaryofthePartyCommittee,Director,GeneralManageroftheCompany,DirectorofChangchaiMachinery,andSupervisorofBeiqiFotonMotorCo.,Ltd.TanJie:PreviouslyservedasDeputyDirectoroftheAccountingDepartmentandDeputyDirectorofthePersonnelandEducationDepartmentofChangzhouMunicipalFinanceBureau,DeputySecretary-GeneralofChangzhouCertifiedPublicAccountantsAssociationandSecretaryoftheYouthLeagueCommittee,DirectoroftheComprehensiveDepartment,DirectoroftheAgricultureDepartment,DirectoroftheAgricultureandRuralAffairsDepartment,andDirectoroftheAdministrativeandPolitical-LegalDepartmentofChangzhouMunicipalFinanceBureau,andAssistantPresidentofChangzhouInvestmentGroupCo.,Ltd.CurrentlyservesasMemberofthePartyCommittee,Director,andVicePresidentofChangzhouInvestmentGroupCo.,Ltd.,andDirectoroftheCompany.JiangHe:PreviouslyservedasAccountant,AssistantMinister,andDeputyMinisteroftheFinanceDepartmentoftheCompany.CurrentlyservesasDirector,ChiefAccountant,andMinisteroftheFinanceDepartmentoftheCompany.YangFeng:PreviouslyservedasBusinessManageroftheShanghaiInvestmentBankingDepartmentofChinaEconomicDevelopmentTrust&InvestmentCorp.,BusinessDirectoroftheInvestmentBankingDepartmentofOrientSecuritiesCo.,Ltd.,GeneralManageroftheInvestmentBankingDepartmentandOperationManagementHeadquartersandAssistanttotheChairmanofAJSecurities,ExecutiveGeneralManageroftheCorporateDevelopmentFinancingDepartmentandInvestmentBankingDepartmentofCITICSecuritiesCo.,Ltd.,andManagingDirectorofDaiwaSecuritiesChinaCo.,Ltd.CurrentlyservesasExecutiveDirectorofDeXinInvestmentManagement(HongKong)Co.,Ltd.,IndependentDirectorofShanghaiKindlyEnterpriseDevelopmentGroupCo.,Ltd.,andDirectoroftheCompany.WangMancang:PreviouslyservedasTeacherandLecturerintheDepartmentofManagement,LecturerandProfessorintheDepartmentofFinanceatNorthwestUniversitySchoolofEconomicsandManagement.CurrentlyservesasDirectoroftheDepartmentofFinanceatNorthwestUniversitySchoolofEconomicsandManagement,DirectorofthePublicEconomicsResearchInstitute,CounselorofXi'anMunicipalGovernment,
Expertofthe"FinanceandFiscalGroup"oftheGovernmentDecision-makingAdvisoryCommittee,IndependentDirectorofXi'anFocuslightTechnologiesCo.,Ltd.,IndependentDirectorofXi'anWonderEnergyChemicalCo.,Ltd.,andIndependentDirectoroftheCompany.ZhangYan:PreviouslyservedasChiefAccountantofChangzhouZhengdaCertifiedPublicAccountantsCo.,Ltd.andExecutiveDeputyChiefAccountantofJiangsuGongzhengCertifiedPublicAccountantsCo.,Ltd.CurrentlyservesasAssociateProfessoratJiangsuUniversityofTechnologySchoolofManagement,DirectorofChangzhouCommunicationsHoldingGroupCo.,Ltd.,DirectorofChangzhouTransportationIndustryGroupCo.,Ltd.,IndependentDirectorofDinoParkCulturalTourismGroupCo.,Ltd.,IndependentNon-executiveDirectorofSeazenEnjoyServicesGroupLimited,IndependentDirectorofJiangsuTianmuLakeTourismCo.,Ltd.,andIndependentDirectoroftheCompany.JiaBin:PreviouslyservedasDeputyDirectoroftheFirstResearchOfficeofTianjinInternalCombustionEngineResearchInstitute,AssistantSecretary-GeneralandDeputySecretary-GeneralofChinaInternalCombustionEngineIndustryAssociation,andSecretary-GeneralofSmallGasolineEngineBranchofChinaInternalCombustionEngineIndustryAssociation.CurrentlyservesasDirectoroftheFirstResearchOfficeofTianjinInternalCombustionEngineResearchInstitute(TianjinMotorcycleTechnologyCenter),Secretary-GeneralofChinaInternalCombustionEngineIndustryAssociation,IndependentDirectorofLutianMachineryCo.,Ltd.,DirectorofTianjinTianboKedaTechnologyCo.,Ltd.,andIndependentDirectoroftheCompany.NiMingliang:PreviouslyservedasClerkandViceChairmanoftheLaborUnionoftheCompany.CurrentlyservesasDeputySecretaryofthePartyCommittee,ChairmanoftheBoardofSupervisors,ChairmanoftheLaborUnionoftheCompany,ChairmanoftheBoardofDirectorsofthePropertyManagementCompany,andDirectorofHorizonInvestment.ShiXingyu:PreviouslyservedasClerk,SectionChief,DeputyGeneralManagerandGeneralManageroftheFinanceDepartmentofChangzhouInvestmentGroupCo.,Ltd.CurrentlyservesasGeneralManagerofChangzhouXinhuiVentureCapitalCo.,Ltd.,DirectorofDonghaiSecuritiesCo.,Ltd.,andSupervisoroftheCompany.LuZhonggui:PreviouslyservedasClerkoftheOrganizationandPersonnelDepartment,Full-timeDisciplineInspectoroftheDisciplineInspectionCommission,andDeputySecretaryoftheOrganPartyGeneralBranchoftheCompany.CurrentlyservesasSecretaryoftheOrganPartyGeneralBranch,MinisterofthePoliticalDepartment,DirectoroftheOffice,EmployeeSupervisoroftheCompany,andDirectorofXingshengRealEstateManagement.LiuYi:PreviouslyservedasAssistantMinisteroftheEnterpriseManagementDepartment,DeputyMinisteroftheFinanceDepartmentandDeputyMinisteroftheAuditingDepartmentoftheCompany.CurrentlyservesasMinisteroftheAuditingDepartment,EmployeeSupervisoroftheCompany,DirectorofZhenjiangSiyang,SupervisorofChangchaiWanzhou,SupervisorofChangchaiBenniu,SupervisorofHorizonInvestment,SupervisorofHorizonAgriculturalEquipment,SupervisorofChangchaiRobin,SupervisorofChangchaiMachinery,andSupervisorofXingshengRealEstateManagement.LinWei:PreviouslyservedasClerk,DeputyMinisterandMinisteroftheEnterpriseManagementDepartment,andDeputyGeneralManagerofChangchaiMachineryoftheCompany.CurrentlyservesasSupervisorandMinisteroftheHumanResourcesDepartmentoftheCompany.SunJianzhong:PreviouslyservedasDirectoroftheTechnologyCenterandAssistantGeneralManageroftheCompany.CurrentlyservesasDeputyGeneralManageroftheCompanyandGeneralManagerofChangchaiMachinery.HeJianjiang:PreviouslyservedasClerk,AssistantMinisterandDeputyMinisteroftheInvestmentandDevelopmentDepartment,andSecuritiesAffairsRepresentativeoftheCompany.CurrentlyservesasDeputy
GeneralManager,BoardSecretaryandMinisteroftheInvestmentandDevelopmentDepartmentoftheCompany,ChairmanandGeneralManagerofHorizonInvestment,DirectorofHorizonAgriculturalEquipment,ChairmanofZhenjiangSiyang,DirectorofJiangsuHorizonNewEnergyTechnologyCo.,Ltd.,andSupervisorofDonghaiSecuritiesCo.,Ltd.WangJing:PreviouslyservedasForeignTradeSalespersonoftheOverseasBusinessDivision,Technician,DeputyWorkshopDirector,AssistantFactoryDirector,DeputyFactoryDirectorandSecretaryoftheSingle-CylinderPartyGeneralBranchoftheSingle-CylinderEngineFactory,andAssistantGeneralManageroftheCompany.CurrentlyservesasDeputyGeneralManageroftheCompanyandChairmanofChangchaiBenniu.WangWeifeng:PreviouslyservedasDesigneroftheDevelopmentDepartment,DesigneroftheTechnologyCenterandDeputyChiefEngineeroftheCompany.CurrentlyservesasChiefEngineerandDeputyDirectoroftheTechnologyCenteroftheCompany.Officesheldconcurrentlyinshareholdingentities:
√Applicable□Notapplicable
Name
| Name | Shareholdingentity | Officeheldintheshareholdingentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheshareholdingentity |
| LiDesen | ChangzhouInvestmentGroupCo.,Ltd. | SecretaryofthePartyCommittee,ChairmanoftheBoard | January2024 | January2025 | Yes |
| TanJie | MemberofthePartyCommittee,Director,VicePresident | April2023 | Ongoing | Yes | |
| ShiXingyu | GeneralManagerofFinanceDepartment | November2021 | May2024 | Yes | |
| Notes | Nil | ||||
Officesheldconcurrentlyinotherentities:
√Applicable□Notapplicable
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| XieGuozhong | BeiqiFotonMotorCo.,Ltd. | Supervisor | 15November2022 | Ongoing | No |
| He | DonghaiSecuritiesCo.,Ltd. | Supervisor | 18January2023 | Ongoing | No |
Jianjiang
| Jianjiang | JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | Director | 28July2023 | Ongoing | |
| YangFeng | DeXinInvestmentManageCo.,Limited | ExecutiveDirector | 1June2022 | Ongoing | No |
| ShanghaiKindlyEnterpriseDevelopmentGroupCo.,Ltd. | IndependentDirector | 17April2023 | Ongoing | ||
| ShiXingyu | DonghaiSecuritiesCo.,Ltd. | Director | 20May2021 | Ongoing | No |
| ChangzhouXinhuiVentureCapitalCo.,Ltd. | GeneralManager | 11November2024 | Ongoing | Yes | |
| WangMancang | DepartmentofFinanceoftheSchoolofEconomicsandManagementofNorthwestUniversity | HeadofDepartment,Professor | 1September2006 | Ongoing | Yes |
| PublicEconomicsResearchInstitute | Director | Ongoing | |||
| Xi'anMunicipalGovernment | Counselor | Ongoing | |||
| FinancialandFiscalAffairsPaneloftheGovernmentDecision-makingAdvisoryCommittee | Expert | Ongoing | |||
| FocuslightTechnologiesInc. | IndependentDirector | 2May2019 | Ongoing | Yes | |
| Xi'anWonderEnergyChemicalCo.,Ltd. | IndependentDirector | 24June2020 | Ongoing | Yes | |
| CcoopGroupCo.,Ltd. | IndependentDirector | 18September2020 | 26April2024 | Yes | |
| ShaanxiConstructionMachineryCo.,Ltd. | IndependentDirector | 16November2018 | 5February2024 | Yes | |
| Chang'anInternationalTrustCo.,Ltd. | Director | 1September2018 | 11November2024 | ||
| Xi'anGuolianQualityTestingTechnologyCo.,Ltd. | Director | 1June2020 | 2September2024 | ||
| JiaBin | TianjinInternalCombustionEngineResearchInstitute | DirectoroftheFirstResearchOffice | March2009 | Ongoing | Yes |
| ChinaInternalCombustionEngineIndustryAssociation | Secretary-General | December2024 | Ongoing | No | |
| LutianMachineryCo.,Ltd. | IndependentDirector | 31December2019 | Ongoing | Yes | |
| SuzhouParsunPowerMachineryCo.,Ltd. | IndependentDirector | 31July2021 | 31October2024 | Yes | |
| TianjinTianboKedaTechnologyCo.,Ltd. | Director | 18August2020 | Ongoing | No |
ZhangYan
| ZhangYan | JiangsuUniversityofTechnology | Associateprofessor | August2008 | Ongoing | Yes |
| JiangsuTianmuLakeTourismCo.,Ltd. | IndependentDirector | 8February2021 | Ongoing | Yes | |
| S-EnjoyServiceGroupCo.,Limited | Independentnon-executiveDirector | 20October2018 | Ongoing | Yes | |
| DinoParkCulturalTourismGroupCo.,Ltd. | IndependentDirector | September2024 | Ongoing | Yes | |
| ChangzhouCommunicationsHoldingGroupCo.,Ltd. | Director | 23April2024 | Ongoing | Yes | |
| ChangzhouTransportationIndustrialGroupCo.,Ltd. | Director | 14April2022 | Ongoing | Yes | |
| Notes | Nil | ||||
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√Notapplicable
3.RemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
In2024,themonthlysalariesofdirectors,supervisors,andseniormanagementpersonnelwhoreceivedremunerationfromtheCompanyweredisbursedinaccordancewiththeCompany’sregulationsonsalarymanagementandgradestandards.Year-endincentivecompensationwaspaidbasedontheCompany’sperformanceandassessmentresults.CurrentdirectorsLiDesenandTanJie,aswellassupervisorShiXingyu,receivetheirremunerationfromshareholderentities.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
Unit:RMB’0,000
| Name | Gender | Age | Officetitle | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany | Anyremunerationfromrelatedparty |
| LiDesen | Male | 43 | ChairmanoftheBoard | Incumbent | 0 | Yes |
| ZhangXin | Male | 58 | ViceChairmanoftheBoard | Incumbent | 90.11 | No |
XieGuozhong
| XieGuozhong | Male | 55 | Director | Incumbent | 90.11 | No |
| GeneralManager | ||||||
| TanJie | Female | 45 | Director | Incumbent | 0 | Yes |
| JiangHe | Male | 52 | Director | Incumbent | 78.26 | No |
| ChiefAccountant | ||||||
| YangFeng | Male | 52 | Director | Incumbent | 0 | No |
| WangMancang | Male | 61 | Independentdirector | Incumbent | 10 | No |
| ZhangYan | Female | 54 | Independentdirector | Incumbent | 10 | No |
| JiaBin | male | 46 | Independentdirector | Incumbent | 10 | No |
| NiMingliang | Male | 57 | ChairmanoftheSupervisoryCommittee | Incumbent | 85.36 | No |
| ShiXingyu | Female | 44 | Supervisor | Incumbent | 0 | Yes |
| LuZhonggui | Male | 57 | Supervisor | Incumbent | 26.59 | No |
| LiuYi | Male | 55 | Supervisor | Incumbent | 26.05 | No |
| LinWei | Male | 42 | Supervisor | Incumbent | 24.72 | No |
| SunJianzhong | male | 52 | Vice-generalManager | Incumbent | 77.86 | No |
| He | Male | 45 | Vice-general | Incumbent | 76.23 | No |
Jianjiang
| Jianjiang | Manager | |||||
| SecretaryoftheBoard | ||||||
| WangJing | Male | 37 | Vice-generalManager | Incumbent | 77.86 | No |
| WangWeifeng | Male | 53 | ChiefEngineer | Incumbent | 78.67 | No |
| Total | -- | -- | -- | -- | 761.82 | -- |
Othersituationexplanations：
□Applicable√NotapplicableVIPerformanceofDutybyDirectorsintheReportingPeriod
1.BoardMeetingsConvenedintheReportingPeriod
| Meeting | Dateofmeeting | Disclosuredate | Resolution |
| The4thMeetingofthe10thBoardofDirectors | January26,2024 | / | Themeetingreviewedandapprovedthe"2023GeneralManagerWorkReport,""2024CompanyOperationalPolicyObjectives,""2023SeniorManagementPerformanceEvaluationResults,""2024SeniorManagementAssessmentPlan,"and"ProposalonApplyingfor2024BankCreditLines." |
| The5thMeetingofthe10thBoardofDirectors | April10,2024 | April12,2024 | Themeetingreviewedandapprovedthe"2023AnnualReportandItsSummary,""2023BoardofDirectorsWorkReport,""ProposalonAmendingtheArticlesofAssociation,""ProposalonAmendingtheRulesofProcedureforShareholders'Meetings,""ProposalonAmendingtheRulesofProcedureforBoardMeetings,""ProposalonAmendingtheIndependentDirectorSystem,""ProposalonRevisingtheThree-Year(2023–2025)ShareholderReturnPlan,""2023ProfitDistributionandCapitalReserveCapitalizationProposal,""ProposalonEstablishingthe'AccountingFirmSelectionPolicy,'""ProposalonMaking2023CreditImpairmentandAssetImpairmentProvisions,""SpecialReportontheDepositandUseof2023RaisedFunds,""2023InternalControlSelf-AssessmentReport,""2023CorporateSocialResponsibilityandESGReport,"and"ProposalonConveningthe2023AnnualGeneralMeetingofShareholders." |
| The1stExtraordinaryMeetingoftheBoardofDirectorsin2024 | April29,2024 | April30,2024 | Themeetingreviewedandapprovedthe"2024FirstQuarterReport." |
The2ndExtraordinaryMeetingoftheBoardofDirectorsin2024
| The2ndExtraordinaryMeetingoftheBoardofDirectorsin2024 | July12,2024 | July13,2024 | Themeetingreviewedandapprovedthe"ProposalonAppointingthe2024FinancialAuditFirmandItsAuditFees,""ProposalonAppointingthe2024InternalControlAuditFirmandItsAuditFees,"and"ProposalonConveningthe2024FirstExtraordinaryGeneralMeetingofShareholders." |
| The3rdExtraordinaryMeetingoftheBoardofDirectorsin2024 | August21,2024 | August23,2024 | Themeetingreviewedandapprovedthe"2024InterimReport"and"ProposalonMaking2024InterimCreditImpairmentandAssetImpairmentProvisions." |
| The4thExtraordinaryMeetingoftheBoardofDirectorsin2024 | August29,2024 | August30,2024 | Themeetingreviewedandapprovedthe"ProposalonCapitalIncreaseinJiangsuChangchaiMachineryCo.,Ltd." |
| The6thMeetingofthe10thBoardofDirectors | October28,2024 | October30,2024 | Themeetingreviewedandapprovedthe"2024ThirdQuarterReport." |
| The5thExtraordinaryMeetingoftheBoardofDirectorsin2024 | November22,2024 | November23,2024 | Themeetingreviewedandapprovedthe"ProposalonContinuingtoUseIdleOwnFundsforWealthManagementProducts,""ProposalontheMergerofChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd.andChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.,"and"ProposalonExtendingtheOperatingPeriodofChangzhouCollaborativeInnovationEquityInvestmentPartnership(LimitedPartnership)." |
2.AttendanceofDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Director | Totalnumberofboardmeetingsthedirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbywayoftelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingsthedirectorfailedtoattend | Thedirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| LiDesen | 8 | 2 | 6 | 0 | 0 | No | 1 |
| ZhangXin | 8 | 2 | 6 | 0 | 0 | No | 2 |
| XieGuozhong | 8 | 2 | 6 | 0 | 0 | No | 2 |
| TanJie | 8 | 2 | 6 | 0 | 0 | No | 2 |
| JiangHe | 8 | 2 | 6 | 0 | 0 | No | 2 |
| YangFeng | 8 | 2 | 6 | 0 | 0 | No | 2 |
| WangMancang | 8 | 2 | 6 | 0 | 0 | No | 2 |
| ZhangYan | 8 | 2 | 6 | 0 | 0 | No | 2 |
| JiaBin | 8 | 0 | 8 | 0 | 0 | No | 2 |
Explanationofwhyanydirectorfailedtoattendtwoconsecutiveboardmeetings:N/A
3.ObjectionsRaisedbyDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranydirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
4.OtherInformationaboutthePerformanceofDutybyDirectorsIndicatebytickmarkwhetheranysuggestionsfromdirectorswereadoptedbytheCompany.
√Yes□NoSuggestionsfromdirectorsadoptedornotadoptedbytheCompany:
AlldirectorsoftheCompanyinlinewiththelaw,rules,normativedocumentsandobligationsgivenbytheCompanyoftheCompanylaw,ArticleofAssociations,RulesofProcedureoftheBoardandIndependentDirectorsSystem,comprehensivelyfocusedonthedevelopmentandoperationoftheCompany,activelyattendedthegeneralmeetingofshareholderandmeetingofboardofdirectors.IndependentdirectorsgivenindependentopinionsforthesignificanteventsoftheCompany,andeffectivelymaintainedtheprofitsoftheCompanyandalltheshareholders.TheCompanyactivelylistenedtothesuggestionsfromdirectorsuponthesignificanteventsandadoptedthem.Formoredetails,pleaserefertotheReportontheWorkoftheBoardofDirectorsfor2024disclosedbytheCompanyonhttp://www.cninfo.com.cndated11April2025.VIISpecialCommitteesundertheBoardofDirectorsduringtheReportingPeriod
Nameofcommittee
| Nameofcommittee | Members | Numberofmeetingsconvened | Dateofmeeting | Contents | Importantcommentsandsuggestions | Otherperformanceofduties | Specificdetailsoftheobjectionmatter |
| AuditCommittee | ZhangYan,WangMancang,LinTian | 8 | January4,2024 | Themeetingreviewedandapprovedthe"2023AnnualReportAuditPlan." | Nil | Nil | Nil |
| January25,2024 | Themeetingreviewedandapprovedthe"PreliminaryReviewCommunicationMattersforthe2023AnnualReport,""AuditDepartment's2023WorkSummaryand2024WorkPlan,"and"SpecialReportontheDepositandUseof2023RaisedFunds." | TheCompany's2023annualreportauditplanisrelativelyreasonable,andthekeycommunicationmattersalignwiththeCompany'sactualsituation.ItisexpectedthattheCompany'smanagementwillcontinuetoworkcloselywiththeaccountingfirmtoensurethesmoothcompletionofthedisclosure |
oftheCompany's2023annualreport.
| oftheCompany's2023annualreport. | ||
| April7,2024 | Themeetingreviewedandapprovedthe"2023AnnualReport,""ProposalonMaking2023CreditImpairmentandAssetImpairmentProvisions,""ProposalonEstablishingthe'AccountingFirmSelectionPolicy,'"and"2023AssessmentReportontheAccountingFirm'sPerformanceandtheBoardAuditCommittee'sReportonSupervisoryDutiesovertheAccountingFirm." | Thefinancialstatementsfairlypresent,inallmaterialrespects,theCompany'sfinancialpositionasofDecember31,2023,aswellasitsoperatingresultsandcashflowsfortheyear2023.Itisagreedtosubmitthe"2023AnnualReport,"the"ProposalonMaking2023CreditImpairmentandAssetImpairmentProvisions,"andthe"ProposalonEstablishingthe'AccountingFirmSelectionPolicy'"totheBoardofDirectorsforreview. |
| April26,2024 | Themeetingreviewedthe"AuditDepartment'sQ12024WorkSummary"andapprovedthe"2024FirstQuarterReport." | AgreedtosubmittheproposaltotheBoardofDirectorsforreview. |
| June6,2024 | Themeetingreviewedandapprovedthe"2024AccountingFirmSelectionWorkPlan." | ThecontentoftheCompany's"2024AccountingFirmSelectionWorkPlan"isscientificandreasonable.Theselectionmethod,workflow,andevaluationcriteriafortheaccountingfirmcomplywiththerequirementsofthe"AccountingFirmSelectionPolicy."ItisagreedthattheCompany'sselectionworkinggroupshallimplementthisworkplanandsubmititforinternaldecision-makingproceduresforreviewandapprovalafterthebiddingresultsarefinalized. |
July8,2024
| July8,2024 | Themeetingreviewedandapprovedthe"ProposalonChangingtheAccountingFirm." | AgreedtosubmittheproposaltotheBoardofDirectorsforreview. | |||
| August20,2024 | Themeetingreviewedandapprovedthe"2024InterimReport"and"ProposalonMaking2024InterimCreditImpairmentandAssetImpairmentProvisions." | AgreedtosubmittheproposaltotheBoardofDirectorsforreview. | |||
| October25,2024 | Themeetingreviewedthe"AuditDepartment'sQ32024WorkReport"andapprovedthe"2024ThirdQuarterReport." | Agreedtosubmitthe"2024ThirdQuarterReport"totheBoardofDirectorsforreview. | |||
| StrategicDevelopmentCommittee | LiDesen,ZhangXin,XieGuozhong,WangMancang,JiaBin | 1 | January26,2024 | Themeetingreviewedandapprovedthe"2023GeneralManagerWorkReport"and"2024CompanyOperationalPolicyObjectives." | AgreedtosubmitallproposalstotheBoardofDirectorsforreview. |
| RemunerationandAppraisalCommittee | WangMancang,LiDesen,JiaBin | 1 | January26,2024 | Themeetingreviewedandapprovedthe"2023SeniorManagementAssessmentResults"and"2024SeniorManagementAssessmentPlan." | AgreedtosubmitallproposalstotheBoardofDirectorsforreview. |
VIIIPerformanceofDutybytheSupervisoryCommitteeIndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√NoTheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.
IXEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end
| Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end | 1,886 |
| Numberofin-serviceemployeesofmajorsubsidiariesattheperiod-end | 535 |
| Totalnumberofin-serviceemployeesattheperiod-end | 2,421 |
| TotalnumberofpaidemployeesintheReportingPeriod | 2,421 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 0 |
| Functions | |
| Function | Employees |
| Production | 1,574 |
| Sales | 179 |
| Technical | 327 |
| Financial | 43 |
| Administrative | 262 |
| Other | 36 |
| Total | 2,421 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Juniorhighschoolgraduatesandbelow | 982 |
| Highschoolgraduates | 633 |
| Collegegraduatesandtechnicalsecondaryschoolgraduates | 494 |
| Bachelors | 292 |
| Mastersandabove | 20 |
| Total | 2,421 |
2.EmployeeRemunerationPolicyTheCompanyalwaysadheredtotheprincipleoftiltingtheremunerationincentivemechanismtowardsexcellenttalents,soastodisplaytherolesofvariousprofessionaltechnicians,managementstaffsandskilledbackbones.Besides,itadheredtotheprincipleofincreasingtheemployee’sincomeintegratedwithincreasinglaborproductionefficiencyandproduction&operationefficiency,soastoperfectthesalarystructureandfurtherincreaseemployees’incomesteadily.
3.EmployeeTrainingPlansTheCompanyestablishedtheManagementRulesontheEducation&TrainingforEmployees,aimingtoenhanceemployees’qualityandtryitsbesttocultivateateamoffaithfulandhighlyprofessionaltalents.Besides,itinnovatedthetrainingmechanism,optimizedthetrainingenvironment,andreinforcedtoencourageemployeestoattendvarioustraining,soastoinspiretheemployees’potentialtothemaximumextentandfurtherpromotethesustainabledevelopmentoftheCompany.
4.LaborOutsourcing
□Applicable√NotapplicableXProfitDistributions(intheFormofCashand/orStock)Howtheprofitdistributionpolicy,especiallythecashdividendpolicy,wasformulated,executedorrevisedintheReportingPeriod:
√Applicable□NotapplicableInArticlesofAssociation,whichhadconfirmedthespecificprofitsdistributionandclearedouttheconditions,standardsandproportionofthecashbonus,stipulatedthedecision-makingprogressoftheformulationandalternationoftheprofitsdistributionpoliciesandthechaptersaswellastheregulationsfullyensuretheopportunitiesforthemediumandsmallshareholderstoexertthefunctionsandtoprovideadvicesaswellasappeals.Thecashbonusofrecent3yearsoftheCompanymetwiththeregulationsoftheArticlesofAssociationandduringthedecision-makingprocessoftheprofit’sdistributionproposal,fullyrespectedtheadvicesfromthemediumandsmallshareholders.Theprofitsdistributionpre-planandtheturningcapitalreserveintosharecapitalpreplanoftheCompanywerebothmetwiththerelevantregulationsoftheArticlesofAssociationandsoon.
Specialstatementaboutthecashdividendpolicy
| Specialstatementaboutthecashdividendpolicy | |
| IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
| Specificandcleardividendstandardandratio | Yes |
| Completedecision-makingprocedureandmechanism | Yes |
| Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
| SpecificreasonsandthenextstepsitintendtotaketoenhancetheinvestorreturnleveliftheCompanydidnotpaycashdividend: | N/A |
| Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
| Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | N/A |
IndicatebytickmarkwhethertheCompanyfailstoputforwardacashdividendproposaldespitethefactsthattheCompanyhasmadeprofitsintheReportingPeriodandtheprofitsoftheCompanyastheparentdistributabletoshareholdersarepositive.
□Applicable√NotapplicableFinaldividendplanfortheReportingPeriod:
√Applicable□Notapplicable
| Bonussharesforevery10shares(share) | 0 |
Dividendforevery10shares(RMB)(taxinclusive)
| Dividendforevery10shares(RMB)(taxinclusive) | 0.1 |
| 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) | 983,627,999.95 |
| Totalcashdividends(includingthoseinotherforms)as%oftotalprofitdistribution | 100% |
| Cashdividendpolicy | |
| Other | |
| Particularsaboutthedividendplan | |
| TheprofitdistributionplanapprovedbytheBoardofDirectorsisasfollows:BasedontheCompany'stotalsharecapitalasofDecember31,2024,acashdividendofRMB0.1per10shares(taxinclusive)willbedistributedtoallshareholders,withnobonussharesissuedandnocapitalreserveconvertedintosharecapital. | |
XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIFormulationandImplementationofInternalControlSystemduringtheReportingPeriod
1.InternalControlFormulationandImplementationDuringtheReportingPeriod,theCompanystrictlycompliedwithnationallawsandregulationsandrelevantregulationssuchastheBasicCodeforInternalControlofEnterprisesandtheGuidelinesforApplicationofEnterpriseInternalControl,aswellastheprovisionsandrequirementsoftheCompany'sinternalcontrolstandards,andoptimizedimportantbusinessprocessesandimprovedandperfectedtheinternalcontrolsystemthroughcontinuoussupervisionandeffectiveevaluationoftheoperationoftheCompany'sinternalcontrol,soastoadapttothechangingexternalenvironmentandinternalmanagementrequirementsandimprovetheefficiencyoftheCompany'soperationandmanagement.Bydoingso,theCompanyeffectivelypreventedrisksinoperationandmanagement,andpromotedtheachievementofinternalcontrolobjectives.TheCompany'sinternalcontrolsystemcancoverthemajoraspectsoftheCompany'soperationandmanagement,andtheinternalcontroldesignissoundandreasonable,withnomaterialomissions.
2.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
XIIIManagementofSubsidiariesbytheCompanyduringtheReportingPeriod
Subsidiary
| Subsidiary | Integrationplan | Progressonintegration | Problemsfoundinintegration | Solutionstaken | Solutionprogress | Subsequentsolution |
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
XIVSelf-EvaluationReportorIndependentAuditor’sReportonInternalControl
1.InternalControlSelf-EvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 11April2024 | |
| Indextothedisclosedinternalcontrolself-evaluationreport | 2025-014 | |
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 100.00% | |
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 100.00% | |
| Identificationstandardsforinternalcontrolweaknesses | ||
| Type | Financialreporting | Non-financialreporting |
| Naturestandard | TheCompanyclassifiesinternalcontroldeficienciesbasedontheirimpactseverityintomaterialweaknesses,significantdeficiencies,andgeneraldeficiencies:(1)MaterialWeakness:Oneormorecontroldeficienciesthatcouldresultinaseveredeviationfromcontrolobjectives;(2)SignificantDeficiency:Oneormorecontroldeficiencieswithlesserseverityandeconomicconsequencesthanamaterialweaknessbutstilllikelytocausedeviationfromcontrolobjectives;(3)GeneralDeficiency:Deficienciesnotclassifiedasmaterialweaknessesorsignificantdeficiencies.QualitativeCriteria:Adeficiency | Adeficiencyshallbeidentifiedasamaterialweaknessifitexhibitsanyofthefollowingcharacteristics:(1)Seriousviolationsofnationallaws,administrativeregulations,andregulatorydocuments;(2)Failuretofollowcollectivedecision-makingproceduresfor"threemajorandonebig"matters;(3)Lackofsystematiccontrolsorcompletefailureofcontrolsystemsforcriticalbusinessoperationsrelatedtocorporateproductionandmanagement;(4)Failureofinternalcontrolsoverinformationdisclosure,resultinginpubliccensurebyregulatoryauthorities; |
shallbeidentifiedasamaterialweaknessifitexhibitsanyofthefollowingcharacteristics:
(1)Involvesfraudbydirectors,supervisors,orseniormanagement;Requiresrestatementofpreviouslyissuedfinancialstatements;
(2)Externalauditorsidentifyamaterialmisstatementincurrentfinancialstatementsthatinternalcontrolsfailedtodetect;
(3)TheAuditCommitteeandinternalauditfunctionareineffectiveinoverseeinginternalcontrols.
| shallbeidentifiedasamaterialweaknessifitexhibitsanyofthefollowingcharacteristics:(1)Involvesfraudbydirectors,supervisors,orseniormanagement;Requiresrestatementofpreviouslyissuedfinancialstatements;(2)Externalauditorsidentifyamaterialmisstatementincurrentfinancialstatementsthatinternalcontrolsfailedtodetect;(3)TheAuditCommitteeandinternalauditfunctionareineffectiveinoverseeinginternalcontrols. | (5)Materialweaknessesidentifiedininternalcontrolassessmentsthatremainunaddressed. | |
| Quantitativestandard | QuantitativeCriteria:Basedonthe2024consolidatedfinancialstatementsdata,thequantitativethresholdsfordeterminingthematerialityofmisstatements(includingomissions)intheCompany'sconsolidatedfinancialstatementsareasfollows:MaterialWeakness:Misstatement≥5%ofannualprofit;SignificantDeficiency:2.5%ofannualprofit≤Misstatement<5%ofannualprofit;GeneralDeficiency:Misstatement<2.5%ofannualprofit. | QuantitativeCriteria:Withreferencetothequantitativestandardsforinternalcontroldeficienciesinfinancialreporting,thequantitativethresholdsfordeterminingthesignificanceofnon-financialreportinginternalcontroldeficienciesinthelistedcompanyareasfollows:MaterialWeakness:Potentialdirectloss≥0.1%ofnetassets;SignificantDeficiency:0.05%ofnetassets≤potentialdirectloss<0.1%ofnetassets;GeneralDeficiency:Potentialdirectloss<0.05%ofnetassets. |
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |
| Numberofseriousweaknessesin | 0 | |
internalcontrolnotrelatedtofinancialreporting
2.IndependentAuditor’sReportonInternalControl
√Applicable□Notapplicable
internalcontrolnotrelatedtofinancialreportingOpinionparagraphintheindependentauditor’sreportoninternalcontrol
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
| WebelievedthatChangchaiCompany,LimitedmaintainedeffectiveinternalcontrolofthefinancialreportinsignificantaspectsaccordingtotheBasicNormsofInternalControlandrelevantregulationson31December2024. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 11April2025 |
| Indextosuchreportdisclosed | ZhongxinghuaAudit(2025)No.020590 |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□NoXVRemediationofProblemsIdentifiedbySelf-inspectionintheSpecialActionontheGovernanceofListedCompaniesNil
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssuesIndicatebytickmarkwhethertheCompanyoranyofitssubsidiarieswasidentifiedasakeypolluterbytheenvironmentauthorities.
□Yes√NoAdministrativepunishmentsreceivedintheReportingPeriodduetoenvironmentalissues:
Companyorsubsidiary
| Companyorsubsidiary | Reasonforpunishment | Violation | Punishment | ImpactontheCompany | RectificationmeasuresoftheCompany |
| N/A | N/A | N/A | N/A | N/A | N/A |
Otherenvironmentalinformationdisclosedwithreferencetokeypolluters:
N/AActionstakenduringtheReportingPeriodtoreducecarbonemissionsandtheimpact:
√Applicable□NotapplicableSeethe2024SocialResponsibilityandESGReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated11April2025.Thereasonfornotdisclosingotherenvironmentalinformation:TheCompanyanditssubsidiariesarenotlistedaskeypollutingunitsbytheenvironmentalprotectiondepartment.TheproductionandoperationoftheCompanyanditssubsidiariesstrictlycomplywithrelevantnationallawsandregulations.TheCompanywillcontinuetostrengthenenvironmentalsupervisionandmanagementtoensurethatthedevelopmentoftheenterprisecomplieswithenvironmentalprotectionpoliciesandregulations.IISocialResponsibilitySeethe2024SocialResponsibilityandESGReportofChangchaiCompany,Limiteddisclosedonhttp://www.cninfo.com.cndated11April2025.IIIEffortsinPovertyAlleviationandRuralRevitalizationNil
PartVISignificantEventsIFulfillmentofCommitments
1.CommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End
√Applicable□Notapplicable
Commitment
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Commitmentsmadeinrefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Aboutsharetradingrestriction | Thesharessubscribedbyourcompanyinthisprivateplacementshallnotbetransferredwithin36monthsfromthelistingdateofChangchaiCo.,Ltd.'snon-publiclyissuedA-shares. | July5,2021 | July5,2021-July5,2024 | FullyPerformed |
| CommitmentsMadeDuringInitialPublicOfferingorRefinancing | ChangzhouInvestmentGroupCo.,Ltd. | Other | 1.CommittonotoverstepauthorityininterferingwiththeCompany'soperationalandmanagementactivities,andnottoappropriatetheCompany'sinterests;2.Committonotprovidingbenefitstootherentitiesorindividualsfreeofchargeorunderunfairconditions,nortakinganyotheractionsthatmayharmtheCompany'sinterests;3.FromthedateofthiscommitmentuntilthecompletionoftheCompany'scurrentprivateplacement,iftheChinaSecuritiesRegulatoryCommission(CSRC)issuesnewregulatoryrequirementsregardingmeasurestomitigatedilutionofreturnsandrelatedcommitments,andiftheabovecommitmentsdonotsatisfysuchCSRCrequirements,theundersignedfurthercommitstosupplementingthisundertakinginaccordancewiththeCSRC'slatestregulations;4.CommittoearnestlyfulfillingtheCompany'smeasurestomitigatedilutionofreturnsandanyrelatedcommitmentsmade | April11,2020 | April11,2020-December31,9999 | Ongoing |
herein.IftheundersignedviolatesthesecommitmentsandcauseslossestotheCompanyoritsinvestors,itshallbearcorrespondingcompensationliabilitiesinaccordancewiththelaw.
| herein.IftheundersignedviolatesthesecommitmentsandcauseslossestotheCompanyoritsinvestors,itshallbearcorrespondingcompensationliabilitiesinaccordancewiththelaw. | ||||||
| Othercommitmentsmadetominorityshareholders | ChangchaiCompany,Limited | DividendCommitment | ShareholderReturnPlanfortheNextThreeYears(2023-2025):UnderthepremisethattheCompany'sdistributableprofit(i.e.,after-taxprofitaftermakingupforlossesandwithdrawingstatutoryreserves)ispositiveinagivenyearorsemi-annualperiod,andthattheCompanyhassufficientcashflowtoensurethatcashdividenddistributionwillnotaffectitssustainableoperations,theCompanyshalldistributenolessthan10%oftheannualdistributableprofitoftheparentcompanyincasheachyear.Additionally,thecumulativecashdividendsdistributedoveranythreeconsecutivefiscalyearsshallbenolessthan30%oftheaverageannualdistributableprofitduringthosethreeyears. | May18,2023 | 2023-2025 | Ongoing |
| Fulfilledontimeornot | Yes | |||||
| Specificreasonsforfailingtofulfillcommitmentsontimeandplansfornextstep(ifany) | N/A | |||||
2.Wheretherehadbeenan-earningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.
□Applicable√NotapplicableIIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheLatestPeriod
□Applicable√NotapplicableVExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIYoYChangestoAccountingPolicies,EstimatesandCorrectionofMaterialAccountingErrors
√Applicable□Notapplicable
Changestotheaccountingpoliciesandwhy
| Changestotheaccountingpoliciesandwhy | ImpactontheCompany'sfinancialstatements | ImpactAmount |
| 1.Implementationof"AccountingStandardsforBusinessEnterprisesInterpretationNo.17"InOctober2023,theMinistryofFinanceissued"AccountingStandardsforBusinessEnterprisesInterpretationNo.17"(CaiKuai[2023]No.21),whichstipulatesprovisionsregarding"theclassificationofcurrentandnon-currentliabilities","disclosuresforsupplierfinancingarrangements",and"accountingtreatmentforsale-and-leasebacktransactions".ThisinterpretationbecameeffectiveonJanuary1,2024.TheCompanyhasadoptedtheprovisionsofInterpretationNo.17startingfromJanuary1,2024.TheapplicationofInterpretationNo.17hasnomaterialimpactontheCompany'sfinancialstatementsforthereportingperiod. | TheimplementationofInterpretationNo.17hasnomaterialimpactontheCompany'sfinancialstatementsforthereportingperiod. | 0.00 |
| 2.Implementationof"AccountingStandardsforBusinessEnterprisesInterpretationNo.18"InDecember2024,theMinistryofFinanceissued"AccountingStandardsforBusinessEnterprisesInterpretationNo.18"(CaiKuai[2024]No.24),whichstipulatesthatforassurance-typewarrantiesthatdonotconstituteseparateperformanceobligations,entitiesshallaccountfortheminaccordancewiththerelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.13-Contingencies".Specifically,entitiesshalldebit"CostofMainBusiness"or"Costof | Referto"NotestoChangesinAccountingPolicies"fordetails. | Referto"NotestoChangesinAccountingPolicies"fordetails. |
OtherBusiness"andcredit"EstimatedLiabilities"basedonthedeterminedamountofprovisions.Thisinterpretationbecameeffectiveuponissuanceandallowsearlyadoptionintheyearofrelease.
NotestoChangesinAccountingPolicies:
Implementationof"AccountingStandardsforBusinessEnterprisesInterpretationNo.18"hadthefollowingimpactsonthefinancialstatementsasofJanuary1,2024:
Unit:RMB
OtherBusiness"andcredit"EstimatedLiabilities"basedonthedeterminedamountofprovisions.Thisinterpretationbecameeffectiveuponissuanceandallowsearlyadoptionintheyearofrelease.
Items
| Items | ConsolidatedFinancialStatements | ParentCompanyFinancialStatements | ||
| AmountasofDecember31,2023(Before) | AmountasofJanuary1,2024(After) | AmountasofDecember31,2023(Before) | AmountasofJanuary1,2024(After) | |
| Provisions | 60,070,382.24 | 60,070,382.24 | ||
| OtherPayables | 159,023,382.81 | 98,953,000.57 | 151,919,473.64 | 91,849,091.40 |
(continued)
| Items | FY2023 | |||
| ConsolidatedFinancialStatements | ParentCompanyFinancialStatements | |||
| Amountbeforechange | Amountafterchange | Amountbeforechange | Amountafterchange | |
| OperatingCosts | 1,838,755,831.41 | 1,884,289,338.95 | 1,788,129,884.67 | 1,831,801,124.99 |
| SellingExpenses | 99,603,282.16 | 54,069,774.62 | 92,935,731.73 | 49,264,491.41 |
VIIYoYChangestotheScopeoftheConsolidatedFinancialStatements
□Applicable√NotapplicableVIIIEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:
| Nameofthedomesticindependentauditor | ZhongxinghuaCertifiedPublicAccountants(SpecialGeneralPartnership) |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 60 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 1 |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | WangJun,PanDaliang |
| Howmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditserviceforthe | OneyearforWangJun,OneyearforPanDaliang |
Company
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
√Yes□NoWhetherThereWasaChangeofAccountingFirmsDuringtheAuditPeriod
□Yes√NoWhethertheReplacementoftheAccountingFirmCompliedwithApprovalProcedures
√Yes□NoDetailedExplanationRegardingtheChangeofAccountingFirmTheCompany'sformerauditingfirm,GongzhengTianyeCertifiedPublicAccountants(SpecialGeneralPartnership),hadprovidedauditservicesfortheCompanyfor22consecutiveyears.Inaccordancewiththe"MeasuresfortheSelectionandAppointmentofAccountingFirmsbyState-OwnedEnterprisesandListedCompanies"andthe"ChangchaiCo.,Ltd.AccountingFirmSelectionPolicy",andtoensurethecompliance,independence,andobjectivityoftheCompany'sauditwork,theCompanydecidednottorenewitsengagementwithGongzhengTianyeastheannualauditfirm.TheCompanyconductedanopencompetitivebiddingprocesstoselectthe2024auditingfirm,withZhongxinghuaCertifiedPublicAccountants(SpecialGeneralPartnership)beingthewinningbidder.OnJuly12,2024,theCompanyheldtheSecondInterimBoardMeetingof2024,wherethefollowingproposalswerereviewedandapproved:(1)"ProposalonAppointingthe2024FinancialAuditFirmandItsAuditFees",(2)"ProposalonAppointingthe2024InternalControlAuditFirmandItsAuditFees".Thismatterwasfurtherapprovedatthe2024FirstExtraordinaryGeneralMeetingofShareholdersonJuly30,2024,formallyappointingZhongxinghuaCertifiedPublicAccountants(SpecialGeneralPartnership)astheCompany'sfinancialandinternalcontrolauditserviceproviderfor2024.EngagementofInternalControlAuditAccountingFirm,FinancialAdvisor,orSponsor
√Applicable□NotapplicableDuringthecurrentyear,theCompanyengagedZhongxinghuaCertifiedPublicAccountants(SpecialGeneralPartnership)asitsinternalcontrolauditfirm,withauditfeesamountingtoRMB135,000.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,receiveloansorcreditfromandwasnot
involvedinanyotherfinancebusinesswithanyrelatedparties.
7.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedforWealthManagement
(1)CashEntrustedforWealthManagement
√Applicable□NotapplicableOverviewsofcashentrustedforwealthmanagementduringtheReportingPeriod
Unit:RMB’0,000
Specifictype
| Specifictype | Capitalresources | Amountincurred | Unduebalance | Unrecoveredoverdueamount | Unrecoveredoverdueamountwithprovisionforimpairment |
| Bankfinancial | Self-funded | 42,675 | 23,075 | 0 | 0 |
products
| products | |||||
| Brokerfinancialproducts | Self-funded | 5,924.43 | 500 | 0 | 0 |
| Total | 48,599.43 | 23,575 | 0 | 0 | |
High-riskwealthmanagementtransactionswithasignificantsingleamount,orwithlowsecurity,lowliquidity:
□Applicable√NotapplicableSituationwheretheprincipalisexpectedlyirrecoverableorimpairmentmaybeincurred:
□Applicable√Notapplicable
(2)EntrustedLoans
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIOtherSignificantEvents
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIISignificantEventsofSubsidiaries
√Applicable□Notapplicable
1.CapitalIncreasetoChangchaiMachineryvia"Debt-to-CapitalReserve"ConversionOnAugust29,2024,theCompanyconvenedtheFourthInterimBoardMeetingof2024andreviewedandapprovedthe"ProposalonCapitalIncreasetoJiangsuChangchaiMachineryCo.,Ltd."TheBoardagreedtoincreasecapitaltoitswholly-ownedsubsidiaryJiangsuChangchaiMachineryCo.,Ltd.byRMB291,835,919.91(includingunpaidloaninterestofRMB4,958,090.18)througha"debt-to-capitalreserve"arrangement,withtheentireamountrecordedascapitalreserve.Asofthereportingperiodend,theCompanyhadcompletedthiscapitalincreaseinJiangsuChangchaiMachineryCo.,Ltd.
2.AbsorptionMergerofHorizonAgriculturalEquipmentbyChangchaiRobinOnNovember22,2024,theCompanyconvenedtheFifthInterimBoardMeetingof2024andreviewedandapprovedthe"ProposalontheMergerbetweenChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd.andChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd."TheBoardagreedthatthewholly-ownedsubsidiaryChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.wouldacquireallassets,liabilities,businessoperations,andotherrightsandobligationsofthewholly-ownedsubsidiaryChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd.throughstatutoryabsorptionmerger.Post-merger,ChangchaiRobincontinuesnormaloperationswhileHorizonAgriculturalEquipment'slegalentitystatushasbeenderegistered.In
February2025,theCompanyreceivedtheRegistrationNotice(No.Dengzi[2025]02270081)issuedbytheGovernmentServicesManagementOfficeofChangzhouHigh-TechIndustrialDevelopmentZone(XinbeiDistrict),confirmingcompletionofHorizonAgriculturalEquipment'sindustrialandcommercialderegistrationprocedures.
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
Before
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Number | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Number | Percentage(%) | |
| 1.Restrictedshares | 56,818,181 | 8.05% | 0 | 0 | 0 | -56,818,181 | -56,818,181 | 0 | 0.00% |
| 1.1Sharesheldbygovernment | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 1.2Sharesheldbystate-ownedlegalpersons | 56,818,181.00 | 8.05% | 0 | 0 | 0 | -56,818,181 | -56,818,181 | 0 | 0.00% |
| 1.3Sharesheldbyotherdomesticinvestors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Amongwhich:Sharesheldbydomesticlegalpersons | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Sharesheldbydomesticnatural | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
persons
| persons | |||||||||
| 1.4Sharesheldbyforeigninvestors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Amongwhich:Sharesheldbyforeignlegalpersons | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Sharesheldbyforeignnaturalpersons | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.Unrestrictedshares | 648,874,326 | 91.95% | 0 | 0 | 0 | 56,818,181 | 56,818,181 | 705,692,507 | 100.00% |
| 2.1RMB-denominatedordinaryshares | 498,874,326 | 70.69% | 0 | 0 | 0 | 56,818,181 | 56,818,181 | 555,692,507 | 78.74% |
| 2.2Domesticallylistedforeignshares | 150,000,000 | 21.26% | 0 | 0 | 0 | 0 | 0 | 150,000,000 | 21.26% |
| 2.3Oversealistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.4Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Totalshares | 705,692,507 | 100.00% | 0 | 0 | 0 | 0 | 0 | 705,692,507 | 100.00% |
Reasonsforthesharechanges:
□Applicable√NotapplicableApprovalofsharechanges:
□Applicable√NotapplicableTransferofshareOwnership:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletothe
Company’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
√Applicable□Notapplicable
Unit:share
Name
| Name | OpeningRestrictedShares | IncreaseinRestrictedSharesDuringtheReportingPeriod | LiftedRestrictedSharesDuringtheReportingPeriod | ClosingRestrictedShares | ReasonsforShareRestrictions | LiftDateofShareRestrictions |
| ChangzhouInvestmentGroupCo.,Ltd. | 56,818,181 | 0 | 56,818,181 | 0 | PrivatePlacementIssuanceof56,818,181AdditionalShares | July5,2024 |
| Total | 56,818,181 | 0 | 56,818,181 | 0 | -- | -- |
IIIssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable√Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable
3.ExistingStaff-HeldShares
□Applicable√NotapplicableIIIShareholdersandActualController
1.ShareholderStructureandHoldings
Unit:share
| Numberofordinaryshareholders | 47,819 | Numberofordinaryshareholdersatthe | 53,790 | Numberofpreferredshareholderswith | 0 | Numberofpreferredshareholderswithresumedvoting | 0 |
month-endpriortothedisclosureofthisReport
| month-endpriortothedisclosureofthisReport | resumedvotingrights | rightsatthemonth-endpriortothedisclosureofthisReport | |||||||||
| 5%orgreatershareholdersortop10shareholders | |||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | ||||
| Status | Shares | ||||||||||
| ChangzhouInvestmentGroupCo.,Ltd | State-ownedlegalperson | 32.26% | 227,663,417 | 0 | 0 | 227,663,417 | N/A | 0 | |||
| ChenJian | Domesticnaturalperson | 0.51% | 3,627,800 | 149,200 | 0 | 3,627,800 | |||||
| KGIASIALIMITED | Foreignlegalperson | 0.44% | 3,100,195 | -1,500 | 0 | 3,100,195 | |||||
| WangShuiqing | Domesticnaturalperson | 0.27% | 1,899,100 | 1,899,100 | 0 | 1,899,100 | |||||
| LiSuinan | Domesticnaturalperson | 0.23% | 1,600,300 | 6,500 | 0 | 1,600,300 | |||||
| ZhangWenbing | Domesticnaturalperson | 0.22% | 1,556,700 | 0 | 0 | 1,556,700 | |||||
| HuangGuoliang | Domesticnaturalperson | 0.22% | 1,547,891 | 19,000 | 0 | 1,547,891 | |||||
| WangYing | Domesticnaturalperson | 0.22% | 1,525,200 | 1,525,200 | 0 | 1,525,200 | |||||
| XieDeqing | Domesticnaturalperson | 0.21% | 1,456,800 | 536,400 | 0 | 1,456,800 | |||||
| LuZhang | Domesticnaturalperson | 0.20% | 1,384,743 | -451,900 | 0 | 1,384,743 | |||||
| Strategicinvestororgenerallegalpersonbecomingatop-10ordinaryshareholderduetorightsissue(ifany) | N/A | ||||||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||||||||||
| Aboveshareholdersinvolvedinentrusting/beingentrustedwithvotingrightsandgiving | N/A | ||||||||||
upvotingrights
| upvotingrights | |||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | ||
| Top10unrestrictedshareholders | |||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | |
| Type | Shares | ||
| ChangzhouInvestmentGroupCo.,Ltd | 227,663,417 | RMB-denominatedordinaryshare | 227,663,417 |
| ChenJian | 3,627,800 | RMB-denominatedordinaryshare | 3,627,800 |
| KGIASIALIMITED | 3,100,195 | Domesticallylistedforeignshare | 3,100,195 |
| WangShuiqing | 1,899,100 | RMB-denominatedordinaryshare | 1,899,100 |
| LiSuinan | 1,600,300 | Domesticallylistedforeignshare | 1,600,300 |
| ZhangWenbing | 1,556,700 | RMB-denominatedordinaryshare | 1,556,700 |
| HuangGuoliang | 1,547,891 | Domesticallylistedforeignshare | 1,547,891 |
| WangYing | 1,525,200 | RMB-denominatedordinaryshare | 1,525,200 |
| XieDeqing | 1,456,800 | Domesticallylistedforeignshare | 1,456,800 |
| LuZhang | 1,384,743 | Domesticallylistedforeignshare | 1,384,743 |
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | Itisunknownwhetherthereisamongthetop10publicshareholdersandthetop10unrestrictedpublicshareholdersanyrelatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforInformationRegardingShareholdingAlteration. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | ShareholdersChenJian,WanShuiqing,andWangYinghold3,627,800shares,1,114,400shares,and1,525,200sharesoftheCompany'sstockrespectivelythroughmargintradingaccounts. | ||
Top10shareholdersinvolvedinrefinancingshareslending
□Applicable√NotapplicableChangesinTop10ShareholdersDuetoSecuritiesLending/ReturnActivities
□Applicable√NotapplicableRepurchaseAgreementsInvolvingTop10ShareholdersDuringReportingPeriod
□Yes√NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyalocalstate-ownedlegalpersonTypeofthecontrollingshareholder:Legalperson
Nameofcontrollingshareholder
| Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| ChangzhouInvestmentGroupCo.,Ltd | LiDesen | 20June2002 | 91320400467283980X | Propertyinvestmentandmanagement |
| Controllingshareholder’sholdingsinotherlistedcompaniesathomeorabroadintheReportingPeriod | Nil | |||
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Localinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:Legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment | ShiJiangshui | 11320400014110251M | Notapplicable | |
| OtherlistedcompaniesathomeorabroadcontrolledbytheactualcontrollerintheReportingPeriod | None | |||
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
4.NumberofAccumulativePledgedSharesheldbytheCompany’sControllingShareholderortheLargestShareholderaswellasItsActing-in-ConcertPartiesAccountsfor80%ofallsharesoftheCompanyheldbyThem
□Applicable√Notapplicable
5.Other10%orGreaterCorporateShareholders
□Applicable√Notapplicable
6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
□Applicable√NotapplicableIVSpecificImplementationofShareRepurchaseduringtheReportingPeriodProgressonanysharerepurchase
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding
□Applicable√Notapplicable
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
PartIXBonds
□Applicable√Notapplicable
PartXFinancialStatementsIIndependentAuditor’sReport
Typeoftheindependentauditor’sopinion
| Typeoftheindependentauditor’sopinion | Unmodifiedunqualifiedopinion |
| Dateofsigningthisreport | 9April2025 |
| Nameoftheindependentauditor | ZhongxinghuaCertifiedPublicAccountants(SpecialGeneralPartnership) |
| No.oftheauditor’sreport | ZhongxinghuaAudit(2025)No.020589 |
| Nameofthecertifiedpublicaccountants | WangJun,PanDaliang |
TextoftheIndependentAuditor’sReportTotheShareholdersofChangchaiCompany,Limited,IOpinionWehaveauditedtheaccompanyingfinancialstatementsofChangchaiCompany,Limited.(togetherwithitsconsolidatedsubsidiariesincludedintheconsolidatedfinancialstatements,the“ChangchaiCompany”),whichcomprisetheparent’sandconsolidatedbalancesheetsasat31December2024,theparent’sandconsolidatedincomestatements,theparent’sandconsolidatedcashflowstatements,theparent’sandconsolidatedstatementsofchangesinshareholders’equityfortheyearthenended,aswellasthenotestothefinancialstatements.Inouropinion,thefinancialstatementsattachedwerepreparedinlinewiththeregulationsofAccountingStandardsforBusinessEnterprisesinallsignificantaspectswhichgaveatrueandfairviewoftheconsolidatedandparentfinancialpositionofChangchaiCompany.Asat31December2024andtheconsolidatedandparentbusinessperformanceandcashflowfor2024.IIBasisforOpinionWeconductedourauditsinaccordancewiththeAuditStandardsforChineseRegisteredAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesforAuditofFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththesaidCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.IIIKeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsforthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthefollowingmatterstobethekeyauditmatterstobecommunicatedintheauditreport.(I)RevenueRecognition
1.MatterDescriptionChangchaiCompany'soperatingrevenueprimarilyderivesfromthesalesofdieselenginesandrelatedcomponents.Fordetailsontheaccountingpoliciesforrevenuerecognitionandtheanalysisofrevenue,pleaserefertotheaccountingpoliciesdescribedinNoteIV.27"SignificantAccountingPoliciesandEstimates"andNote
V.39"ConsolidatedFinancialStatementItems"inthenotestotheconsolidatedfinancialstatements.Fortheyear2024,ChangchaiCompanyreportedoperatingrevenueofRMB2,415,869,028.32.AsoperatingrevenueisoneofChangchaiCompany’skeyperformanceindicators,thereisaninherentriskthatmanagement(hereinafterreferredtoas"Management")mayrecognizerevenueinappropriatelytoachievespecifictargetsorexpectations.Therefore,weidentifiedtherecognitionandmeasurementofChangchaiCompany’srevenueasakeyauditmatter.
2.AuditResponse
(1)Gainedanunderstandingofkeyinternalcontrolsrelatedtorevenuerecognition,evaluatedthedesignofthesecontrols,determinedwhethertheywereimplemented,andtestedtheoperatingeffectivenessofrelevantinternalcontrols;
(2)ConductedinterviewswithManagementtounderstandChangchaiCompany’srevenuerecognitionpolicies;
(3)Reviewedsalescontractstounderstandkeycontractualtermsandconditionsandassessedwhethertherevenuerecognitionmethodswereappropriate;
(4)Performedanalyticalproceduresonoperatingrevenueandgrossprofitmarginbymonth,product,andcustomertoidentifyanysignificantorunusualfluctuationsandinvestigatedthereasonsforsuchfluctuations;
(5)Examinedsupportingdocumentsrelatedtorevenuerecognitiononasamplebasis,includingbutnotlimitedtosalescontracts,purchaseorders,salesinvoices,deliverynotes,customeracknowledgments,settlementdocuments,exportdeclarations,andbillsoflading;
(6)Conductedconfirmationsofsalesrevenueandaccountsreceivablebalanceswithmajorcustomerstoverifytheauthenticityandaccuracyofrevenuerecognition;
(7)Performedsampletestingonsalesrevenuerecognizedaroundthebalancesheetdatetoassesswhetherrevenuewasrecordedintheappropriateperiod;
(8)ObtainedbusinessregistrationinformationofChangchaiCompany’smajorcustomersandinquiredwithrelevantpersonneltoconfirmwhetheranyrelated-partyrelationshipsexistedbetweenmajorcustomersandChangchaiCompany;
(9)Reviewedwhetherinformationrelatedtooperatingrevenuewasappropriatelypresentedinthefinancialstatements.(II)ImpairmentofAccountsReceivable
1.MatterDescriptionAsofDecember31,2024,thegrosscarryingamountofaccountsreceivableintheconsolidatedbalancesheetofChangchaiCompanywasRMB589,230,509.70,withanallowancefordoubtfulaccountsofRMB144,976,269.68,resultinginanetcarryingamountofRMB444,254,240.02.ManagementofChangchaiCompanymeasurestheallowanceforimpairmentbasedontheexpectedcreditlossesoverthelifetimeofthereceivables,eitherindividuallyorcollectively,accordingtothecreditriskcharacteristicsoftheaccountsreceivable.Foraccountsreceivablemeasuredindividuallyforexpectedcreditlosses,Managementconsidersreasonableandsupportableinformationaboutpastevents,currentconditions,andforecastsoffutureeconomicconditionstoestimatetheexpectedcollectiblecashflows,therebydeterminingtheappropriateallowance.Foraccountsreceivablemeasuredcollectivelyforexpectedcreditlosses,theyaregroupedbasedonaging,andtheallowanceisdeterminedbyreferencinghistoricalcreditlossexperienceadjustedforforward-lookingestimates.Anaginganalysisofaccountsreceivableispreparedandmatchedwithexpectedcreditlossratestocalculatetheallowance.Giventhematerialityofaccountsreceivableandthesignificantmanagementjudgmentinvolvedinimpairment
assessment,weidentifiedtheimpairmentofaccountsreceivableasakeyauditmatter.
2.AuditResponse
(1)Gainedanunderstandingofkeyinternalcontrolsrelatedtoaccountsreceivableimpairment,evaluatedtheirdesign,determinedwhethertheywereimplemented,andtestedtheoperatingeffectivenessofrelevantcontrols;
(2)Reviewedsubsequentactualwrite-offsorreversalsofallowancesfordoubtfulaccountsfromprioryearstoassesstheaccuracyofManagement’spastestimates;
(3)EvaluatedManagement’sconsiderationsandsupportingevidenceinassessingthecreditriskofaccountsreceivabletodeterminewhethercreditriskcharacteristicswereappropriatelyidentified;
(4)Forindividuallyassessedaccountsreceivable,obtainedandexaminedManagement’scashflowprojections,assessedthereasonablenessofkeyassumptionsanddataaccuracy,andcorroboratedthemwithexternalevidence;
(5)Forcollectivelyassessedaccountsreceivable,evaluatedtheappropriatenessofgroupingbasedoncreditriskcharacteristicsandassessedthereasonablenessoftheaginganalysisandexpectedcreditlossratesbycomparingthemwithhistoricallossexperienceandforward-lookingadjustments;
(6)TestedtheaccuracyandcompletenessofdatausedbyManagementandverifiedthecorrectnessoftheallowancecalculation;
(7)Performedconfirmationsonasampleofyear-endaccountsreceivablebalances,discussedcollectionstatusandpotentialriskswithManagement,andexaminedsubsequentcollectionstoassessthereasonablenessoftheallowance;
(8)Reviewedwhetherdisclosuresrelatedtoaccountsreceivableimpairmentwereappropriatelypresentedinthefinancialstatements.IV.OtherInformationThemanagementofChangchaiCompany(hereinafterreferredtoas"Management")isresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedinthe2024AnnualReportofChangchaiCompany,butdoesnotincludethefinancialstatementsandourauditreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformation,nordoweexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.Basedontheworkwehaveperformed,ifweconcludethatthereisamaterialmisstatementintheotherinformation,wearerequiredtoreportthatfact.Inthisregard,wehavenothingtoreport.V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises,andforthedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,ManagementisresponsibleforassessingChangchaiCompany’sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcern(asapplicable),andusingthegoingconcernbasisofaccountingunlessManagementeitherintendstoliquidatetheCompany,ceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements
Ourobjectiveistoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurancebutisnotaguaranteethatanauditconductedinaccordancewithauditingstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorinaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.Inconductingtheauditinaccordancewithauditingstandards,weexercisedprofessionaljudgmentandmaintainedprofessionalskepticism.Furthermore,we:
(1)Identifiedandassessedtherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror;designedandperformedauditproceduresresponsivetothoserisks;andobtainedsufficientandappropriateauditevidenceasabasisforourauditopinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrols.
(2)Obtainedanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
(3)Evaluatedtheappropriatenessofaccountingpoliciesusedbymanagementandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.
(4)Concludedontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccounting.Basedontheauditevidenceobtained,weconcludedwhetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonChangchaiCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,auditingstandardsrequireustodrawattentioninourauditreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheinformationavailabletousuptothedateoftheauditreport.However,futureeventsorconditionsmaycauseChangchaiCompanytoceasetocontinueasagoingconcern.
(5)Evaluatedtheoverallpresentation,structure,andcontentofthefinancialstatements,andassessedwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsfairly.
(6)ObtainedsufficientandappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithinChangchaiCompanytoexpressanopiniononthefinancialstatements.Wewereresponsiblefordirecting,supervising,andperformingthegroupauditandremainsolelyresponsibleforourauditopinion.Wecommunicatedwiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheaudit,significantauditfindings,andanysignificantdeficienciesininternalcontrolidentifiedduringouraudit.Wealsoprovidedthosechargedwithgovernancewithastatementthatwecompliedwithrelevantethicalrequirementsregardingindependence,andcommunicatedallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,includingrelevantsafeguards(whereapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminedthosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandwerethereforethekeyauditmatters.Wedescribethesemattersinourauditreportunlesslaworregulationprecludespublicdisclosure,orinextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefits.
ZhongxinghuaCertifiedPublicAccountantsLLPChineseCPA:WangJun
(SpecialGeneralPartnership)(EngagementPartner)
ChineseCPA:PanDaliangBeijing·China9April2025IIFinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB
1.ConsolidatedBalanceSheetPreparedbyChangchaiCompany,Limited
31December2024
Unit:RMB
Item
| Item | 31December2024 | 1January2024 |
| Currentassets: | ||
| Monetaryassets | 1,063,700,492.59 | 1,083,867,966.87 |
| Settlementreserve | ||
| Interbankloansgranted | ||
| Held-for-tradingfinancialassets | 303,667,459.65 | 225,641,429.94 |
| Derivativefinancialassets | ||
| Notesreceivable | 318,814,017.13 | 161,632,567.94 |
| Accountsreceivable | 444,254,240.02 | 316,543,159.91 |
| Accountsreceivablefinancing | 223,261,002.76 | 195,875,948.92 |
| Prepayments | 12,725,958.70 | 12,333,310.85 |
| Premiumsreceivable | ||
| Reinsurancereceivables | ||
| Receivablereinsurancecontractreserve | ||
| Otherreceivables | 9,847,441.82 | 49,699,753.61 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 7,165,080.00 | |
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | 819,201,998.42 | 789,220,185.68 |
| Including:Dataresources | ||
| Contractassets | ||
| Assetsheldforsale |
Currentportionofnon-currentassets
| Currentportionofnon-currentassets | 40,773,509.75 | |
| Othercurrentassets | 54,605,021.67 | 20,910,504.84 |
| Totalcurrentassets | 3,250,077,632.76 | 2,896,498,338.31 |
| Non-currentassets: | ||
| Loansandadvancestocustomers | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | ||
| Investmentsinotherequityinstruments | 941,120,058.72 | 969,488,025.67 |
| Othernon-currentfinancialassets | 377,869,217.49 | 412,914,576.80 |
| Investmentproperty | 37,740,844.55 | 39,837,558.11 |
| Fixedassets | 615,414,505.40 | 675,596,920.95 |
| Constructioninprogress | 3,376,866.69 | 4,275,622.18 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 142,805,785.86 | 148,458,185.68 |
| Including:Dataresources | ||
| Developmentcosts | ||
| Including:Dataresources | ||
| Goodwill | ||
| Long-termprepaidexpense | 2,664,557.06 | 8,227,958.66 |
| Deferredincometaxassets | 6,458,337.99 | 1,518,995.79 |
| Othernon-currentassets | 4,373,097.30 | 2,578,776.77 |
| Totalnon-currentassets | 2,131,823,271.06 | 2,262,896,620.61 |
| Totalassets | 5,381,900,903.82 | 5,159,394,958.92 |
| Currentliabilities: | ||
| Short-termborrowings | 94,471,787.41 | |
| Borrowingsfromthecentralbank | ||
| Interbankloansobtained | ||
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities |
Notespayable
| Notespayable | 491,643,629.88 | 528,139,582.33 |
| Accountspayable | 690,733,575.75 | 641,484,184.05 |
| Advancesfromcustomers | 30,183,376.84 | 1,647,441.22 |
| Contractliabilities | 31,640,879.59 | 33,352,877.66 |
| Financialassetssoldunderrepurchaseagreements | ||
| Customerdepositsandinterbankdeposits | ||
| Payablesforactingtradingofsecurities | ||
| Payablesforunderwritingofsecurities | ||
| Employeebenefitspayable | 48,792,254.98 | 47,738,883.57 |
| Taxespayable | 4,214,324.70 | 6,231,169.74 |
| Otherpayables | 117,736,961.52 | 98,953,000.57 |
| Including:Interestpayable | ||
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Handlingchargesandcommissionspayable | ||
| Reinsurancepayables | ||
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 175,064,677.93 | 67,069,965.96 |
| Totalcurrentliabilities | 1,684,481,468.60 | 1,424,617,105.10 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | 73,002,860.52 | 60,070,382.24 |
| Deferredincome | 29,386,167.02 | 32,795,896.48 |
| Deferredincometaxliabilities | 154,449,852.33 | 171,843,455.52 |
Othernon-currentliabilities
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 256,838,879.87 | 264,709,734.24 |
| Totalliabilities | 1,941,320,348.47 | 1,689,326,839.34 |
| Shareholders’equity: | ||
| Sharecapital | 705,692,507.00 | 705,692,507.00 |
| Otherequityinstruments | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Capitalreserves | 640,509,675.84 | 640,509,675.84 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 643,067,549.91 | 667,180,321.82 |
| Specificreserve | 21,959,066.35 | 19,432,089.52 |
| Surplusreserves | 367,826,665.27 | 363,695,592.34 |
| Generalreserve | ||
| Retainedearnings | 983,627,999.95 | 1,002,436,724.71 |
| TotalequityattributabletoShareholdersoftheCompanyastheparent | 3,362,683,464.32 | 3,398,946,911.23 |
| Non-controllinginterests | 77,897,091.03 | 71,121,208.35 |
| Totalshareholders’equity | 3,440,580,555.35 | 3,470,068,119.58 |
| Totalliabilitiesandshareholders’equity | 5,381,900,903.82 | 5,159,394,958.92 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
2.BalanceSheetoftheCompanyastheParent
Unit:RMB
Item
| Item | 31December2024 | 1January2024 |
| Currentassets: | ||
| Monetaryassets | 932,456,827.90 | 971,143,382.52 |
| Held-for-tradingfinancialassets | 200,209,027.78 | 100,437,916.67 |
| Derivativefinancialassets | ||
| Notesreceivable | 291,060,042.38 | 152,906,979.84 |
| Accountsreceivable | 424,946,666.41 | 291,996,837.94 |
| Accountsreceivablefinancing | 215,854,639.00 | 193,679,203.92 |
| Prepayments | 8,720,127.77 | 5,850,589.29 |
| Otherreceivables | 24,288,767.65 | 399,142,024.92 |
| Including:Interestreceivable | ||
| Dividendsreceivable | 7,165,080.00 | |
| Inventories | 551,350,588.20 | 475,538,711.10 |
| Including:Dataresources | ||
| Contractassets | ||
| Assetsheldforsale | ||
| Currentportionofnon-currentassets | 40,773,509.75 | |
| Othercurrentassets | 31,935,179.39 | 5,839,708.73 |
| Totalcurrentassets | 2,680,821,866.48 | 2,637,308,864.68 |
| Non-currentassets: | ||
| Investmentsindebtobligations | ||
| Investmentsinotherdebtobligations | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 868,279,449.94 | 576,443,530.03 |
| Investmentsinotherequityinstruments | 941,120,058.72 | 969,488,025.67 |
| Othernon-currentfinancialassets | 377,869,217.49 | 412,914,576.80 |
| Investmentproperty | 37,740,844.55 | 39,837,558.11 |
| Fixedassets | 188,539,011.23 | 229,931,726.27 |
| Constructioninprogress | 3,132,433.82 | 2,166,940.74 |
| Productivelivingassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | 56,046,446.22 | 58,781,756.11 |
| Including:Dataresources | ||
| Developmentcosts |
Including:Dataresources
| Including:Dataresources | ||
| Goodwill | ||
| Long-termprepaidexpense | ||
| Deferredincometaxassets | 5,814,276.42 | 920,609.18 |
| Othernon-currentassets | 3,755,279.00 | 830,991.15 |
| Totalnon-currentassets | 2,482,297,017.39 | 2,291,315,714.06 |
| Totalassets | 5,163,118,883.87 | 4,928,624,578.74 |
| Currentliabilities: | ||
| Short-termborrowings | 49,843,838.91 | |
| Held-for-tradingfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | 652,752,618.33 | 524,671,742.33 |
| Accountspayable | 572,396,386.79 | 526,544,716.02 |
| Advancesfromcustomers | 30,183,376.84 | 1,647,441.22 |
| Contractliabilities | 23,493,204.39 | 26,149,334.52 |
| Employeebenefitspayable | 39,221,119.16 | 40,766,429.54 |
| Taxespayable | 2,116,355.96 | 2,069,482.65 |
| Otherpayables | 111,060,096.07 | 91,849,091.40 |
| Including:Interestpayable | ||
| Dividendspayable | 3,243,179.97 | 3,243,179.97 |
| Liabilitiesdirectlyassociatedwithassetsheldforsale | ||
| Currentportionofnon-currentliabilities | ||
| Othercurrentliabilities | 39,139,067.15 | 53,417,011.96 |
| Totalcurrentliabilities | 1,520,206,063.60 | 1,267,115,249.64 |
| Non-currentliabilities: | ||
| Long-termborrowings | ||
| Bondspayable | ||
| Including:Preferredshares | ||
| Perpetualbonds | ||
| Leaseliabilities | ||
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Provisions | 70,293,055.65 | 60,070,382.24 |
| Deferredincome | 29,386,167.02 | 32,795,896.48 |
| Deferredincometaxliabilities | 147,506,745.60 | 157,053,077.87 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 247,185,968.27 | 249,919,356.59 |
Totalliabilities
| Totalliabilities | 1,767,392,031.87 | 1,517,034,606.23 |
| Shareholders’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 | 643,067,549.91 | 667,180,321.82 |
| Specificreserve | 19,117,263.36 | 19,010,793.43 |
| Surplusreserves | 367,826,665.27 | 363,695,592.34 |
| Retainedearnings | 1,000,604,165.79 | 996,592,057.25 |
| Totalshareholders’equity | 3,395,726,852.00 | 3,411,589,972.51 |
| Totalliabilitiesandshareholders’equity | 5,163,118,883.87 | 4,928,624,578.74 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
3.ConsolidatedIncomeStatement
Unit:RMB
Item
| Item | 2024 | 2023 |
| 1.Revenue | 2,415,869,028.32 | 2,155,698,787.49 |
| Including:Operatingrevenue | 2,415,869,028.32 | 2,155,698,787.49 |
| Interestincome | ||
| Insurancepremiumincome | ||
| Handlingchargeandcommissionincome | ||
| 2.Costsandexpenses | 2,371,544,119.17 | 2,156,452,273.22 |
| Including:Costofsales | 2,119,300,466.07 | 1,884,289,338.95 |
| Interestexpense | ||
| Handlingchargeandcommissionexpense | ||
| Surrenders | ||
| Netinsuranceclaimspaid | ||
| Netamountprovidedasinsurancecontractreserve | ||
| Expenditureonpolicydividends | ||
| Reinsurancepremiumexpense | ||
| Taxesandsurcharges | 16,181,617.86 | 15,057,398.25 |
| Sellingexpense | 60,617,254.43 | 54,069,774.62 |
| Administrativeexpense | 115,466,341.90 | 123,981,333.99 |
| R&Dexpense | 83,401,477.60 | 90,339,104.33 |
| Financecosts | -23,423,038.69 | -11,284,676.92 |
| Including:Interestexpense | 341,136.21 | 1,825,195.98 |
| Interestincome | 17,940,638.39 | 9,008,657.82 |
| Add:Otherincome | 23,621,255.14 | 6,788,111.97 |
| Returnoninvestment(“-”forloss) | 24,265,851.27 | 19,102,348.95 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | -3,313,989.60 | -5,709,875.91 |
| Exchangegain(“-”forloss) | ||
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -65,938,196.89 | 49,816,098.68 |
| Creditimpairmentloss(“-”forloss) | 1,229,820.12 | -172,171.65 |
| Assetimpairmentloss(“-”forloss) | -14,403,371.83 | -27,893,895.75 |
| Assetdisposalincome(“-”forloss) | 304,377.71 | 105,702,551.01 |
| 3.Operatingprofit(“-”forloss) | 13,404,644.67 | 152,589,557.48 |
| Add:Non-operatingincome | 2,838,603.42 | 927,993.65 |
| Less:Non-operatingexpense | 886,507.69 | 1,182,537.54 |
4.Profitbeforetax(“-”forloss)
| 4.Profitbeforetax(“-”forloss) | 15,356,740.40 | 152,335,013.59 |
| Less:Incometaxexpense | -9,260,824.48 | 37,636,658.03 |
| 5.Netprofit(“-”fornetloss) | 24,617,564.88 | 114,698,355.56 |
| 5.1Byoperatingcontinuity | ||
| 5.1.1Netprofitfromcontinuingoperations(“-”fornetloss) | 24,617,564.88 | 114,698,355.56 |
| 5.1.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.2Byshareholders’equity | ||
| 5.2.1NetprofitattributabletoshareholdersoftheCompanyastheparent | 18,489,896.00 | 108,495,607.05 |
| 5.2.1Netprofitattributabletonon-controllinginterests | 6,127,668.88 | 6,202,748.51 |
| 6.Othercomprehensiveincome,netoftax | -24,112,771.91 | 11,838,617.75 |
| AttributabletoshareholdersoftheCompanyastheparent | -24,112,771.91 | 11,838,617.75 |
| 6.1Itemsthatwillnotbereclassifiedtoprofitorloss | -24,112,771.91 | 11,838,617.75 |
| 6.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 6.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 6.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -24,112,771.91 | 11,838,617.75 |
| 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 | 504,792.97 | 126,536,973.31 |
| AttributabletoshareholdersoftheCompanyastheparent | -5,622,875.91 | 120,334,224.80 |
| Attributabletonon-controllinginterests | 6,127,668.88 | 6,202,748.51 |
| 8.Earningspershare | ||
| 8.1Basicearningspershare | 0.0262 | 0.1537 |
| 8.2Dilutedearningspershare | 0.0262 | 0.1537 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
4.IncomeStatementoftheCompanyastheParent
Unit:RMB
Item
| Item | 2024 | 2023 |
| 1.Operatingrevenue | 2,261,596,684.92 | 2,057,120,913.33 |
| Less:Costofsales | 2,025,918,153.26 | 1,831,801,124.99 |
| Taxesandsurcharges | 9,757,870.85 | 8,602,178.79 |
| Sellingexpense | 54,333,372.12 | 49,264,491.41 |
| Administrativeexpense | 86,953,834.51 | 87,122,617.94 |
| R&Dexpense | 74,555,192.15 | 79,855,291.69 |
| Financecosts | -26,393,666.49 | -19,194,141.71 |
| Including:Interestexpense | 14,172.26 | 1,562,299.35 |
| Interestincome | 21,371,554.39 | 17,311,210.31 |
| Add:Otherincome | 22,448,967.24 | 6,016,229.41 |
| Returnoninvestment(“-”forloss) | 22,651,325.15 | 15,102,581.80 |
| Including:Shareofprofitorlossofjointventuresandassociates | ||
| Incomefromthederecognitionoffinancialassetsatamortizedcost(“-”forloss) | -2,778,698.46 | -4,894,619.98 |
| Netgainonexposurehedges(“-”forloss) | ||
| Gainonchangesinfairvalue(“-”forloss) | -34,836,331.53 | 39,852,493.47 |
| Creditimpairmentloss(“-”forloss) | 621,287.63 | 3,495,307.23 |
| Assetimpairmentloss(“-”forloss) | -11,574,638.78 | -20,288,104.38 |
| Assetdisposalincome(“-”forloss) | 428,278.54 | 105,727,630.80 |
| 2.Operatingprofit(“-”forloss) | 36,210,816.77 | 169,575,488.55 |
| Add:Non-operatingincome | 1,069,126.99 | 319,236.80 |
| Less:Non-operatingexpense | 7,440.00 | 51,648.54 |
| 3.Profitbeforetax(“-”forloss) | 37,272,503.76 | 169,843,076.81 |
| Less:Incometaxexpense | -4,038,225.54 | 24,864,410.60 |
| 4.Netprofit(“-”fornetloss) | 41,310,729.30 | 144,978,666.21 |
| 4.1Netprofitfromcontinuingoperations(“-”fornetloss) | 41,310,729.30 | 144,978,666.21 |
| 4.2Netprofitfromdiscontinuedoperations(“-”fornetloss) | ||
| 5.Othercomprehensiveincome,netoftax | -24,112,771.91 | 11,838,617.75 |
| 5.1Itemsthatwillnotbereclassifiedtoprofitorloss | -24,112,771.91 | 11,838,617.75 |
| 5.1.1Changescausedbyremeasurementsondefinedbenefitschemes | ||
| 5.1.2Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorlossundertheequitymethod | ||
| 5.1.3Changesinthefairvalueofinvestmentsinotherequityinstruments | -24,112,771.91 | 11,838,617.75 |
| 5.1.4Changesinthefairvaluearisingfromchangesinowncreditrisk | ||
| 5.1.5Other |
5.2Itemsthatwillbereclassifiedtoprofitorloss
| 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 | 17,197,957.39 | 156,817,283.96 |
| 7.Earningspershare | ||
| 7.1Basicearningspershare | ||
| 7.2Dilutedearningspershare |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
5.ConsolidatedCashFlowStatement
Unit:RMB
Item
| Item | 2024 | 2023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 2,238,358,650.77 | 2,031,067,538.52 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingsfromthecentralbank | ||
| Netincreaseinloansfromotherfinancialinstitutions | ||
| Premiumsreceivedonoriginalinsurancecontracts | ||
| Netproceedsfromreinsurance | ||
| Netincreaseindepositsandinvestmentsofpolicyholders | ||
| Interest,handlingchargesandcommissionsreceived | ||
| Netincreaseininterbankloansobtained | ||
| Netincreaseinproceedsfromrepurchasetransactions | ||
| Netproceedsfromactingtradingofsecurities | ||
| Taxrebates | 19,164,629.21 | 98,155,472.59 |
| Cashgeneratedfromotheroperatingactivities | 67,860,339.28 | 40,082,851.79 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,325,383,619.26 | 2,169,305,862.90 |
| Paymentsforcommoditiesandservices | 1,962,599,108.34 | 1,533,814,952.73 |
| Netincreaseinloansandadvancestocustomers | ||
| Netincreaseindepositsinthecentralbankandininterbankloansgranted | ||
| Paymentsforclaimsonoriginalinsurancecontracts | ||
| Netincreaseininterbankloansgranted | ||
| Interest,handlingchargesandcommissionspaid | ||
| Policydividendspaid | ||
| Cashpaidtoandforemployees | 327,926,688.72 | 310,775,202.76 |
| Taxespaid | 50,158,557.19 | 33,394,657.94 |
| Cashusedinotheroperatingactivities | 138,992,233.71 | 154,131,222.12 |
| Subtotalofcashusedinoperatingactivities | 2,479,676,587.96 | 2,032,116,035.55 |
| Netcashgeneratedfrom/usedinoperatingactivities | -154,292,968.70 | 137,189,827.35 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,118,117,547.48 | 1,101,955,152.04 |
| Returnoninvestment | 11,949,697.38 | 23,632,366.98 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 76,848,662.26 | 71,562,956.31 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | ||
| Subtotalofcashgeneratedfrominvestingactivities | 1,206,915,907.12 | 1,197,150,475.33 |
Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 19,328,172.96 | 97,110,602.27 |
| Paymentsforinvestments | 1,179,550,000.00 | 947,055,152.04 |
| Netincreaseinpledgedloansgranted | ||
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | ||
| Subtotalofcashusedininvestingactivities | 1,198,878,172.96 | 1,044,165,754.31 |
| Netcashgeneratedfrom/usedininvestingactivities | 8,037,734.16 | 152,984,721.02 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Including:Capitalcontributionsbynon-controllingintereststosubsidiaries | ||
| Borrowingsraised | 94,412,090.20 | |
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 94,412,090.20 | |
| Repaymentofborrowings | 7,000,000.00 | |
| Interestanddividendspaid | 33,168,340.22 | 7,195,400.07 |
| Including:Dividendspaidbysubsidiariestonon-controllinginterests | ||
| Cashusedinotherfinancingactivities | 117,170,000.00 | |
| Subtotalofcashusedinfinancingactivities | 33,168,340.22 | 131,365,400.07 |
| Netcashgeneratedfrom/usedinfinancingactivities | 61,243,749.98 | -131,365,400.07 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 6,063,845.94 | 2,469,409.11 |
| 5.Netincreaseincashandcashequivalents | -78,947,638.62 | 161,278,557.41 |
| Add:Cashandcashequivalents,beginningoftheperiod | 971,629,523.46 | 810,350,966.05 |
| 6.Cashandcashequivalents,endoftheperiod | 892,681,884.84 | 971,629,523.46 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
6.CashFlowStatementoftheCompanyastheParent
Unit:RMB
Item
| Item | 2024 | 2023 |
| 1.Cashflowsfromoperatingactivities: | ||
| Proceedsfromsaleofcommoditiesandrenderingofservices | 1,986,603,574.57 | 2,151,742,371.58 |
| Taxrebates | 13,751,464.43 | 40,874,390.40 |
| Cashgeneratedfromotheroperatingactivities | 27,621,885.18 | 21,935,914.65 |
| Subtotalofcashgeneratedfromoperatingactivities | 2,027,976,924.18 | 2,214,552,676.63 |
| Paymentsforcommoditiesandservices | 1,860,419,699.59 | 1,636,385,419.97 |
| Cashpaidtoandforemployees | 188,575,870.97 | 212,298,042.01 |
| Taxespaid | 30,952,518.43 | 8,731,121.51 |
| Cashusedinotheroperatingactivities | 86,011,290.15 | 302,274,673.41 |
| Subtotalofcashusedinoperatingactivities | 2,165,959,379.14 | 2,159,689,256.90 |
| Netcashgeneratedfrom/usedinoperatingactivities | -137,982,454.96 | 54,863,419.73 |
| 2.Cashflowsfrominvestingactivities: | ||
| Proceedsfromdisinvestment | 1,004,382,432.65 | 1,010,000,000.00 |
| Returnoninvestment | 11,093,937.38 | 18,887,391.07 |
| Netproceedsfromthedisposaloffixedassets,intangibleassetsandotherlong-livedassets | 76,459,461.84 | 71,055,306.33 |
| Netproceedsfromthedisposalofsubsidiariesandotherbusinessunits | ||
| Cashgeneratedfromotherinvestingactivities | 1,177,096.12 | |
| Subtotalofcashgeneratedfrominvestingactivities | 1,093,112,927.99 | 1,099,942,697.40 |
| Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets | 9,040,777.20 | 7,558,187.67 |
| Paymentsforinvestments | 1,056,000,000.00 | 837,170,000.00 |
| Netpaymentsfortheacquisitionofsubsidiariesandotherbusinessunits | ||
| Cashusedinotherinvestingactivities | 6,000,000.00 | |
| Subtotalofcashusedininvestingactivities | 1,071,040,777.20 | 844,728,187.67 |
| Netcashgeneratedfrom/usedininvestingactivities | 22,072,150.79 | 255,214,509.73 |
| 3.Cashflowsfromfinancingactivities: | ||
| Capitalcontributionsreceived | ||
| Borrowingsraised | 49,829,666.65 | |
| Cashgeneratedfromotherfinancingactivities | ||
| Subtotalofcashgeneratedfromfinancingactivities | 49,829,666.65 | |
| Repaymentofborrowings | ||
| Interestanddividendspaid | 33,167,547.83 | 7,056,925.07 |
| Cashusedinotherfinancingactivities | 110,000,000.00 | |
| Subtotalofcashusedinfinancingactivities | 33,167,547.83 | 117,056,925.07 |
Netcashgeneratedfrom/usedinfinancingactivities
| Netcashgeneratedfrom/usedinfinancingactivities | 16,662,118.82 | -117,056,925.07 |
| 4.Effectofforeignexchangerateschangesoncashandcashequivalents | 5,173,303.38 | 2,008,960.07 |
| 5.Netincreaseincashandcashequivalents | -94,074,881.97 | 195,029,964.46 |
| Add:Cashandcashequivalents,beginningoftheperiod | 899,689,740.60 | 704,659,776.14 |
| 6.Cashandcashequivalents,endoftheperiod | 805,614,858.63 | 899,689,740.60 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
7.ConsolidatedStatementsofChangesinShareholders’Equity2024
Unit:RMB
Item
| Item | 2024 | ||||||||||||||
| EquityattributabletoshareholdersoftheCompanyastheparent | Non-controllinginterests | Totalshareholders’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 640,509,675.84 | 667,180,321.82 | 19,432,089.52 | 363,695,592.34 | 1,002,436,724.71 | 3,398,946,911.23 | 71,121,208.35 | 3,470,068,119.58 | ||||||
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||||
Otheradjustments
| Otheradjustments | |||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 640,509,675.84 | 667,180,321.82 | 19,432,089.52 | 363,695,592.34 | 1,002,436,724.71 | 3,398,946,911.23 | 71,121,208.35 | 3,470,068,119.58 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -24,112,771.91 | 2,526,976.83 | 4,131,072.93 | -18,808,724.76 | -36,263,446.91 | 6,775,882.68 | -29,487,564.23 | ||||||
| 3.1Totalcomprehensiveincome | -24,112,771.91 | 18,489,896.00 | -5,622,875.91 | 6,127,668.88 | 504,792.97 | ||||||||
| 3.2Capitalincreasedandreducedbyshareholders | |||||||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | |||||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments |
3.2.3Share-basedpaymentsincludedinshareholders’equity
| 3.2.3Share-basedpaymentsincludedinshareholders’equity | ||||||||
| 3.2.4Other | ||||||||
| 3.3Profitdistribution | 4,131,072.93 | -37,298,620.76 | -33,167,547.83 | -33,167,547.83 | ||||
| 3.3.1Appropriationtosurplusreserves | 4,131,072.93 | -4,131,072.93 | ||||||
| 3.3.2Appropriationtogeneralreserve | ||||||||
| 3.3.3Appropriationtoshareholders | -33,167,547.83 | -33,167,547.83 | -33,167,547.83 | |||||
| 3.3.4Other | ||||||||
| 3.4Transferswithinshareholders’equity |
3.4.1Increaseincapital(orsharecapital)fromcapitalreserves
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves | ||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||
| 3.4.6Other | ||||||
| 3.5Specificreserve | 2,526,976.83 | 2,526,976.83 | 648,213.80 | 3,175,190.63 | ||
| 3.5.1Increaseintheperiod | 9,958,016.52 | 9,958,016.52 | 912,151.30 | 10,870,167.82 |
3.5.2Usedintheperiod
| 3.5.2Usedintheperiod | 7,431,039.69 | 7,431,039.69 | 263,937.50 | 7,694,977.19 | |||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 640,509,675.84 | 643,067,549.91 | 21,959,066.35 | 367,826,665.27 | 983,627,999.95 | 3,362,683,464.32 | 77,897,091.03 | 3,440,580,555.35 |
2023
| Item | 2023 | ||||||||||||||
| EquityattributabletoshareholdersoftheCompanyastheparent | Non-controllinginterests | Totalshareholders’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Generalreserve | Retainedearnings | Other | Subtotal | |||||
| Preferredshares | Perpetualbonds | Other | |||||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||||
Add:
Adjustmentforchangeinaccountingpolicy
| Add:Adjustmentforchangeinaccountingpolicy | |||||||||||||
| Adjustmentforcorrectionofpreviouserror | |||||||||||||
| Otheradjustments | |||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 640,133,963.01 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 915,495,909.35 | 3,284,710,665.90 | 72,464,172.67 | 3,357,174,838.57 | ||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 375,712.83 | 11,838,617.75 | 583,232.77 | 14,497,866.62 | 86,940,815.36 | 114,236,245.33 | -1,342,964.32 | 112,893,281.01 | |||||
| 3.1Totalcomprehensiveincome | 11,838,617.75 | 108,495,607.05 | 120,334,224.80 | 6,202,748.51 | 126,536,973.31 | ||||||||
| 3.2Capitalincreasedandreducedbyshareholders | 375,712.83 | 375,712.83 | -7,545,712.83 | -7,170,000.00 |
3.2.1Ordinarysharesincreasedbyshareholders
| 3.2.1Ordinarysharesincreasedbyshareholders | ||||||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | ||||||||||
| 3.2.3Share-basedpaymentsincludedinshareholders’equity | ||||||||||
| 3.2.4Other | 375,712.83 | 375,712.83 | -7,545,712.83 | -7,170,000.00 | ||||||
| 3.3Profitdistribution | 14,497,866.62 | -21,554,791.69 | -7,056,925.07 | -7,056,925.07 | ||||||
| 3.3.1Appropriationtosurplusreserves | 14,497,866.62 | -14,497,866.62 | ||||||||
| 3.3.2Appropriationtogeneralreserve |
3.3.3Appropriationtoshareholders
| 3.3.3Appropriationtoshareholders | -7,056,925.07 | -7,056,925.07 | -7,056,925.07 | |||
| 3.3.4Other | ||||||
| 3.4Transferswithinshareholders’equity | ||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | ||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | ||||||
| 3.4.3Lossoffsetbysurplusreserves |
Unit:RMB
3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | |||||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | |||||||||||||
| 3.4.6Other | |||||||||||||
| 3.5Specificreserve | 583,232.77 | 583,232.77 | 583,232.77 | ||||||||||
| 3.5.1Increaseintheperiod | 5,136,988.70 | 5,136,988.70 | 5,136,988.70 | ||||||||||
| 3.5.2Usedintheperiod | 4,553,755.93 | 4,553,755.93 | 4,553,755.93 | ||||||||||
| 3.6Other | |||||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 640,509,675.84 | 667,180,321.82 | 19,432,089.52 | 363,695,592.34 | 1,002,436,724.71 | 3,398,946,911.23 | 71,121,208.35 | 3,470,068,119.58 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
8.StatementsofChangesinShareholders’EquityoftheCompanyastheParent2024
Unit:RMB
Item
| Item | 2024 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasurystock | Othercomprehensiveincome | Specificreserve | Surplusreserves | Retainedearnings | Other | Totalshareholders’equity | |||
| Preferredshares | Perpetualbonds | Other | ||||||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 659,418,700.67 | 667,180,321.82 | 19,010,793.43 | 363,695,592.34 | 996,592,057.25 | 3,411,589,972.51 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 659,418,700.67 | 667,180,321.82 | 19,010,793.43 | 363,695,592.34 | 996,592,057.25 | 3,411,589,972.51 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | -24,112,771.91 | 106,469.93 | 4,131,072.93 | 4,012,108.54 | -15,863,120.51 | |||||||
3.1Totalcomprehensiveincome
| 3.1Totalcomprehensiveincome | -24,112,771.91 | 41,310,729.30 | 17,197,957.39 | ||||
| 3.2Capitalincreasedandreducedbyshareholders | |||||||
| 3.2.1Ordinarysharesincreasedbyshareholders | |||||||
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||||
| 3.2.3Share-basedpaymentsincludedinshareholders’equity | |||||||
| 3.2.4Other | |||||||
| 3.3Profitdistribution | 4,131,072.93 | -37,298,620.76 | -33,167,547.83 | ||||
| 3.3.1Appropriationtosurplusreserves | 4,131,072.93 | -4,131,072.93 | |||||
| 3.3.2Appropriationtoshareholders | -33,167,547.83 | -33,167,547.83 | |||||
| 3.3.3Other | |||||||
| 3.4Transferswithinshareholders’equity | |||||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves |
3.4.3Lossoffsetbysurplusreserves
| 3.4.3Lossoffsetbysurplusreserves | ||||||||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings | ||||||||||
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 106,469.93 | 106,469.93 | ||||||||
| 3.5.1Increaseintheperiod | 4,667,120.91 | 4,667,120.91 | ||||||||
| 3.5.2Usedintheperiod | 4,560,650.98 | 4,560,650.98 | ||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 659,418,700.67 | 643,067,549.91 | 19,117,263.36 | 367,826,665.27 | 1,000,604,165.79 | 3,395,726,852.00 |
2023
Unit:RMB
| Item | 2023 | |||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less: | Othercomprehen | Specificreserve | Surplusreserves | Retainedearnings | Othe | Totalshareholders | |
Treasurystock
| Preferredshares | Perpetualbonds | Other | Treasurystock | siveincome | r | ’equity | ||||||
| 1.Balanceasattheendoftheprioryear | 705,692,507.00 | 659,418,700.67 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | |||||
| Add:Adjustmentforchangeinaccountingpolicy | ||||||||||||
| Adjustmentforcorrectionofpreviouserror | ||||||||||||
| Otheradjustments | ||||||||||||
| 2.Balanceasatthebeginningoftheyear | 705,692,507.00 | 659,418,700.67 | 655,341,704.07 | 18,848,856.75 | 349,197,725.72 | 873,168,182.73 | 3,261,667,676.94 | |||||
| 3.Increase/decreaseintheperiod(“-”fordecrease) | 11,838,617.75 | 161,936.68 | 14,497,866.62 | 123,423,874.52 | 149,922,295.57 | |||||||
| 3.1Totalcomprehensiveincome | 11,838,617.75 | 144,978,666.21 | 156,817,283.96 | |||||||||
| 3.2Capitalincreasedandreducedbyshareholders | ||||||||||||
| 3.2.1Ordinarysharesincreasedbyshareholders |
3.2.2Capitalincreasedbyholdersofotherequityinstruments
| 3.2.2Capitalincreasedbyholdersofotherequityinstruments | |||||
| 3.2.3Share-basedpaymentsincludedinshareholders’equity | |||||
| 3.2.4Other | |||||
| 3.3Profitdistribution | 14,497,866.62 | -21,554,791.69 | -7,056,925.07 | ||
| 3.3.1Appropriationtosurplusreserves | 14,497,866.62 | -14,497,866.62 | |||
| 3.3.2Appropriationtoshareholders | -7,056,925.07 | -7,056,925.07 | |||
| 3.3.3Other | |||||
| 3.4Transferswithinshareholders’equity | |||||
| 3.4.1Increaseincapital(orsharecapital)fromcapitalreserves | |||||
| 3.4.2Increaseincapital(orsharecapital)fromsurplusreserves | |||||
| 3.4.3Lossoffsetbysurplusreserves | |||||
| 3.4.4Changesindefinedbenefitschemestransferredtoretainedearnings |
3.4.5Othercomprehensiveincometransferredtoretainedearnings
| 3.4.5Othercomprehensiveincometransferredtoretainedearnings | ||||||||||
| 3.4.6Other | ||||||||||
| 3.5Specificreserve | 161,936.68 | 161,936.68 | ||||||||
| 3.5.1Increaseintheperiod | 4,598,473.04 | 4,598,473.04 | ||||||||
| 3.5.2Usedintheperiod | 4,436,536.36 | 4,436,536.36 | ||||||||
| 3.6Other | ||||||||||
| 4.Balanceasattheendoftheperiod | 705,692,507.00 | 659,418,700.67 | 667,180,321.82 | 19,010,793.43 | 363,695,592.34 | 996,592,057.25 | 3,411,589,972.51 |
Legalrepresentative:XieGuozhongGeneralManager:XieGuozhongHeadoftheaccountingdepartment:JiangHe
III.CompanyProfile
1.Registeredlocation,organizationformandheadquarteraddressoftheCompanyChangchaiCompany,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“Changchai”forshortofstock,aswellas“0570”asstockcode(presentstockcodeis“000570”).In1996,uponrecommendationbyDocumentNo.13[1996]oftheGeneralOfficeofJiangsuProvincialPeople'sGovernment,preliminaryreviewbyDocumentNo.24[1996]ofShenzhenSecuritiesRegulatoryOffice,andapprovalbyDocumentNo.27[1996]oftheStateCouncilSecuritiesCommission,theCompanyprivatelyplaced100millionB-sharestoqualifiedinvestorsfromAugust27toAugust30,1996.TheshareswerelistedonSeptember13,1996,withthestockabbreviation"ChangchaiB"andstockcode"2570"(currentstockcode:
"200570").Throughyearsofbonussharedistributions,rightsofferings,capitalreserveconversions,andadditionalshareissuances,asofDecember31,2024,theCompany'stotalissuedsharecapitalreached705,692,507shares,withregisteredcapitalofRMB705,692,507.RegisteredAddress:123HuaideMiddleRoad,Changzhou,JiangsuProvinceHeadquartersAddress:123HuaideMiddleRoad,Changzhou,JiangsuProvinceUnifiedSocialCreditCode:91320400134792410W
2.PrincipalBusinessOperationsoftheCompanyTheCompanyoperatesinthemanufacturingindustry,withitsbusinessscopeprimarilycovering:themanufacturingandsalesofdieselengines,dieselenginecomponentsandcastings,gasolineengines,gasolineenginecomponents,grainharvestingmachinery,rotarytillers,walkingtractors,molds,andfixtures,aswellastheassemblyandsalesofdieselengineunitsandgasolineengineunits.TheCompany'smainproductsorservicesinclude:theproductionandsalesofsmallandmedium-sizedsingle-cylinderandmulti-cylinderdieselenginesunderthe"Changchai"brand.ThedieselenginesproducedandsoldbytheCompanyaremainlyusedintractors,combineharvesters,lightcommercialvehicles,agriculturalequipment,smallconstructionmachinery,generatorsets,andmarineengines.Duringthereportingperiod,therewerenochangestotheCompany'scorebusinessoperations.
3.AuthorizationofFinancialStatementsThefinancialreporthasbeenapprovedtobeissuedbytheBoardofDirectorsonApril9,2025.IV.BasisforPreparationoftheFinancialReport
1.BasisforPreparationWiththegoing-concernassumptionasthebasisandbasedontransactionsandothereventsthatactuallyoccurred,theGrouppreparedfinancialstatementsinaccordancewithTheAccountingStandardsforBusiness
Enterprises—BasicStandardissuedbytheMinistryofFinancewithDecreeNo.33andrevisedwithDecreeNo.76,thevariousspecificaccountingstandards,theApplicationGuidanceofAccountingStandardsforBusinessEnterprises,theInterpretationofAccountingStandardsforBusinessEnterprisesandotherregulationsissuedandrevisedfrom15February2006onwards(hereinafterjointlyreferredtoas“theAccountingStandardsforBusinessEnterprises”,“ChinaAccountingStandards”or“CAS”),aswellastheRulesforPreparationConventionofDisclosureofPublicOfferingCompaniesNo.15–GeneralRegulationsforFinancialReporting(revisedin2023)byChinaSecuritiesRegulatoryCommission.InaccordancewithrelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,theGroupadoptedtheaccrualbasisinaccounting.Exceptforsomefinancialinstruments,whereimpairmentoccurredonanasset,animpairmentreservewaswithdrawnaccordinglypursuanttorelevantrequirements.
2.ContinuationThesefinancialstatementsarepreparedonagoingconcernbasis.TheCompanyhastheabilitytocontinueasagoingconcernforatleast12monthsfromtheendofthereportingperiod.V.ImportantAccountingPoliciesandEstimationsNotificationofspecificaccountingpoliciesandaccountingestimations:
TheCompanyanditssubsidiariesareprincipallyengagedintheproductionandsalesofsmall-to-mediumsizedsingle-cylinderandmulti-cylinderdieselenginesunderthe'Changchai'trademark.InaccordancewiththeiractualproductionandoperatingcharacteristicsandtherelevantAccountingStandardsforBusinessEnterprises,theCompanyanditssubsidiarieshaveformulatedspecificaccountingpoliciesandaccountingestimatesforvarioustransactionsandevents,asdetailedinthefollowingdescriptions.
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanycomplywiththerequirementsoftheAccountingStandardsforBusinessEnterprises(ASBE)andpresentfairly,inallmaterialrespects,theconsolidatedandparentcompany'sfinancialpositionasofDecember31,2024,andtheconsolidatedandparentcompany'soperatingresultsandcashflowsfortheyearthenended.
2.FiscalPeriodThefiscalperiodsaredividedintofiscalyearandmetaphase,thefiscalyearisfromJanuary1toDecember31andasthemetaphaseincludedmonthly,quarterlyandsemi-yearlyperiods.
3.OperatingCycleAnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashorcashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionfortheliquidityofitsassetsandliabilities.
4.CurrencyUsedinBookkeepingRenminbiisfunctionalcurrencyoftheCompany.
5.AccountingMethodsforBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControlBusinessCombinationreferstotransactionsoreventsthatintegratetwoormoreseparateenterprisesintoasinglereportingentity.BusinesscombinationsarecategorizedintoBusinessCombinationsundertheSameControlandBusinessCombinationsnotundertheSameControl.
(1)BusinesscombinationsunderthesamecontrolTheenterprisesinvolvedincombinationareultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.Thecontrolisnottemporary,andthecombinationisunderthesamecontrol.Forbusinesscombinationunderthesamecontrol,thepartythatobtainscontroloverotherparticipatingenterprisesonthepurchasedateistheacquirer,andotherenterprisesthatparticipateinthecombinationaretheacquirees.Combinationdatereferstothedateonwhichthecombingpartyactuallyobtainscontroltothecombinedparty.TheCompanymeasurestheassetsandliabilitiesobtainedfromconsolidationofenterprises,accordingtothebookvalueofconsolidatedparty’sassetsandliabilities(includingthegoodwillarisingfromultimatecontroller’sacquisitionoftheconsolidatedparty)intheultimatecontroller’sconsolidatedfinancialstatementontheconsolidationdate;adjuststhecapitalpremiumincapitalreserve,bythedifferencebetweenobtainednetassetbookvalueandpaidconsolidatedconsiderationbookvalue(ortotalparvalueofsharesissued),andadjustsretainedearnings,ifthecapitalpremiumincapitalreserveisinsufficienttooffset.Thedirectexpensesgeneratedbytheacquirerforthepurposeofbusinesscombinationsshallberecordedintotheprofitsandlossesforthecurrentperiod.
(2)BusinesscombinationsnotunderthesamecontrolAbusinesscombinationinvolvingenterprisesthatarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombinationisabusinesscombinationnotundercommoncontrol.Inabusinesscombinationnotundercommoncontrol,thepartythatobtainscontrolovertheothercombiningenterprisesontheacquisitiondateistheacquirer,andtheotherenterprisesparticipatinginthecombinationaretheacquirees.Theacquisitiondateisthedateonwhichtheacquirereffectivelyobtainscontroloftheacquiree.Forabusinesscombinationnotundercommoncontrol,thecostofcombinationincludesthefairvalue,attheacquisitiondate,ofassetsgiven,liabilitiesincurredorassumed,andequityinstrumentsissuedbytheacquirerinexchangeforcontroloftheacquiree.Professionalfeessuchasaudit,legal,valuationandconsultingservices,aswellasotheradministrativecostsrelatedtothebusinesscombination,areexpensedasincurred.Transactioncostsincurredbytheacquirerinissuingequityordebtinstrumentsasconsiderationforthecombinationareincludedintheinitialrecognitionamountoftheequityordebtinstruments.Anycontingentconsiderationisincludedinthecostofcombinationatitsfairvalueattheacquisitiondate.Ifneworadditionalevidencerelatingtocircumstancesexistingattheacquisitiondateariseswithintwelvemonthsaftertheacquisitiondateandresultsinanadjustmenttothecontingentconsideration,theamountofgoodwillisadjustedaccordingly.Theacquirermeasuresthecostofcombinationandtheidentifiableassetsandliabilitiesacquiredattheirfairvaluesattheacquisitiondate.Theexcessofthecostofcombinationovertheacquirer'sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeattheacquisitiondateisrecognizedasgoodwill.Ifthecostofcombinationislessthantheacquirer'sinterestinthefairvalueoftheidentifiablenetassetsoftheacquiree,theacquirerfirstreassessesthemeasurementoftheidentifiableassets,liabilitiesandcontingentliabilitiesacquiredandthecostofcombination.Ifthecostof
combinationremainslessthantheacquirer'sinterestinthefairvalueoftheidentifiablenetassetsoftheacquireeafterthereassessment,thedifferenceisrecognizedinprofitorlossfortheperiod.Iftheacquirerobtainsdeductibletemporarydifferencesoftheacquireethatdonotmeettherecognitioncriteriafordeferredtaxassetsattheacquisitiondateandarethereforenotrecognized,andifwithintwelvemonthsaftertheacquisitiondateneworadditionalinformationbecomesavailableindicatingthattherelevantcircumstancesexistedattheacquisitiondateandthattheeconomicbenefitsassociatedwiththedeductibletemporarydifferencesoftheacquireeattheacquisitiondateareprobable,therelateddeferredtaxassetsarerecognizedwithacorrespondingdecreaseingoodwill.Ifthegoodwillisinsufficienttoabsorbthedecrease,theexcessisrecognizedinprofitorloss.Inallothercases,deferredtaxassetsarisingfromabusinesscombinationarerecognizedinprofitorloss.AbusinesscombinationnotundercommoncontrolachievedinstagesthroughmultipletransactionsisaccountedforbyreferencetotheprecedingparagraphsandNoteV.14"Long-termequityinvestments"ifthetransactionsarepartofasinglearrangement.Ifthetransactionsarenotpartofasinglearrangement,theaccountingtreatmentisdifferentiatedbetweentheseparatefinancialstatementsandtheconsolidatedfinancialstatements:
Intheseparatefinancialstatements,theinitialcostoftheinvestmentisthesumofthecarryingamountoftheequityinvestmentintheacquireeheldpriortotheacquisitiondateandthecostoftheadditionalinvestmentincurredontheacquisitiondate.Iftheequityinvestmentintheacquireeheldpriortotheacquisitiondateinvolvesothercomprehensiveincome,therelatedothercomprehensiveincomeisaccountedforonthesamebasisasiftheacquireehaddirectlydisposedoftherelatedassetsorliabilitieswhentheinvestmentisdisposedof(i.e.,exceptfortherelevantshareofchangesarisingfromtheacquiree'sremeasurementofdefinedbenefitplannetliabilitiesorassetsaccountedforundertheequitymethod,theremainderisreclassifiedtoinvestmentincomeinthecurrentperiod).Intheconsolidatedfinancialstatements,theequityinvestmentintheacquireeheldpriortotheacquisitiondateisremeasuredatitsfairvalueontheacquisitiondate,withanydifferencebetweenthefairvalueandthecarryingamountrecognizedininvestmentincomefortheperiod.Iftheequityinvestmentintheacquireeheldpriortotheacquisitiondateinvolvesothercomprehensiveincome,therelatedothercomprehensiveincomeisaccountedforonthesamebasisasiftheacquireehaddirectlydisposedoftherelatedassetsorliabilities(i.e.,exceptfortherelevantshareofchangesarisingfromtheacquiree'sremeasurementofdefinedbenefitplannetliabilitiesorassetsaccountedforundertheequitymethod,theremainderisreclassifiedtoinvestmentincomeintheperiodinwhichtheacquisitiondatefalls).
6.CriteriaforDeterminingControlandMethodsforPreparingConsolidatedFinancialStatements
(1)CriteriaforDeterminingControlThescopeofconsolidationisdeterminedbasedoncontrol.ControlmeansthattheCompanyhaspoweroveraninvestee,isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee,andhastheabilitytouseitspowerovertheinvesteetoaffecttheamountofthereturns.Thisgenerallyincludessituationswhere:theparentholdsmorethanhalfofthevotingrightsoftheinvestee;ortheparentholdshalforlessofthevotingrightsbuthasmorethanhalfofthevotingrightsthroughagreementswithotherinvestors;orhasthepowertogovernthefinancialandoperatingpoliciesoftheinvesteeundertheinvestee’sarticlesofassociationoragreements;orhasthepowertoappointorremovethemajorityofthemembersoftheboardofdirectorsoftheinvestee;orhasthemajorityofvotingrightsattheboardofdirectorsoftheinvestee.
(2)MethodsforPreparingConsolidatedFinancialStatementsTheCompanyincludessubsidiariesintheconsolidatedfinancialstatementsfromthedateonwhichitobtains
controloverthesubsidiaries’netassetsandoperatingdecisions,andexcludesthemfromthedateonwhichsuchcontrolceases.Forsubsidiariesdisposedof,theresultsofoperationsandcashflowspriortothedisposaldateareproperlyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement;forsubsidiariesdisposedofduringtheperiod,theopeningbalancesoftheconsolidatedbalancesheetarenotadjusted.Forsubsidiariesacquiredinbusinesscombinationsnotundercommoncontrol,theirresultsofoperationsandcashflowsaftertheacquisitiondateareproperlyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,andtheopeningbalancesandcomparativefiguresintheconsolidatedfinancialstatementsarenotadjusted.Forsubsidiariesacquiredinbusinesscombinationsundercommoncontrolandentitiesacquiredthroughmergers,theirresultsofoperationsandcashflowsfromthebeginningoftheperiodinwhichthecombinationoccurstothecombinationdateareproperlyincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,andthecomparativefiguresintheconsolidatedfinancialstatementsareadjustedaccordingly.Whenpreparingtheconsolidatedfinancialstatements,iftheaccountingpoliciesorreportingperiodsadoptedbyasubsidiarydifferfromthoseoftheCompany,thesubsidiary’sfinancialstatementsareadjustedtoconformtotheCompany’saccountingpoliciesandreportingperiods.Forsubsidiariesacquiredinbusinesscombinationsnotundercommoncontrol,theirfinancialstatementsareadjustedbasedonthefairvaluesoftheidentifiablenetassetsattheacquisitiondate.Allsignificantintercompanybalances,transactionsandunrealizedprofitsareeliminatedinfullintheconsolidatedfinancialstatements.Theportionofequityandnetprofitorlossofsubsidiariesattributabletonon-controllinginterestsispresentedseparatelyintheconsolidatedfinancialstatementsunderequityandnetprofit,respectively.Theportionofnetprofitorlossofsubsidiariesattributabletonon-controllinginterestsispresentedas“non-controllinginterests”undernetprofitintheconsolidatedincomestatement.Lossesattributabletonon-controllinginterestsinasubsidiarythatexceedthenon-controllinginterests’shareofequityinthesubsidiaryatthebeginningoftheperiodareallocatedagainstnon-controllinginterests.Whencontroloveraformersubsidiaryislostduetodisposalofpartoftheequityinvestmentorotherreasons,theremainingequityinterestisremeasuredatitsfairvalueatthedatewhencontrolislost.Thedifferencebetweenthesumoftheconsiderationreceivedfromthedisposalandthefairvalueoftheremainingequityinterest,andtheshareofthecarryingamountoftheformersubsidiary’snetassetsattributabletotheoriginalequityinterestfromtheacquisitiondate,isrecognizedinprofitorlossfortheperiodinwhichcontrolislost.Othercomprehensiveincomerelatedtotheequityinvestmentintheformersubsidiaryisaccountedforonthesamebasisasiftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitieswhencontrolislost(i.e.,exceptfortherelevantshareofchangesarisingfromtheinvestee’sremeasurementofdefinedbenefitplannetliabilitiesorassets,theremainderisreclassifiedtoprofitorlossforthecurrentperiod).Subsequently,theremainingequityinterestisaccountedforinaccordancewiththerelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.2–Long-termEquityInvestmentsorAccountingStandardsforBusinessEnterprisesNo.22–RecognitionandMeasurementofFinancialInstruments.Fordetails,seeNote5.14“Long-termEquityInvestments”orNoteV.10“FinancialInstruments”.WhentheCompanylosescontroloverasubsidiarythroughmultipletransactionsthatinvolvedisposingofequityinvestmentsinthesubsidiarystepbystep,itisnecessarytodeterminewhetherthetransactionsshouldbeaccountedforasasingletransaction.Theterms,conditionsandeconomiceffectsofthetransactionsmeetoneormoreofthefollowingcircumstances,whichgenerallyindicatethatthetransactionsshouldbeaccountedforasasingletransaction:(1)thetransactionsareenteredintosimultaneouslyorincontemplationofoneanother;(2)thetransactionsformasingletransactiontoachieveanoverallcommercialeffect;(3)theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;or(4)onetransactionconsideredaloneis
noteconomicallyjustified,butiseconomicallyjustifiedwhenconsideredtogetherwithothertransactions.Ifthetransactionsarenotpartofasingletransaction,eachtransactionisaccountedforseparatelyasappropriateundertheprinciplesapplicableto“partialdisposaloflong-termequityinvestmentsinsubsidiarieswithoutlossofcontrol”and“lossofcontroloverformersubsidiariesduetodisposalofpartofequityinvestmentsorotherreasons”.Ifthetransactionsarepartofasingletransaction,theyareaccountedforasasingletransactioninvolvingdisposalofthesubsidiaryandlossofcontrol;however,thedifferencebetweentheconsiderationreceivedfromeachdisposalbeforethelossofcontrolandtheshareofthesubsidiary’snetassetsattributabletothedisposedinvestmentisrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandreclassifiedtoprofitorlossfortheperiodinwhichcontrolislost.
7.ClassificationofJointArrangementsandAccountingTreatmentforJointOperationsAjointarrangementisanarrangementofwhichtwoormorepartieshavejointcontrol.TheCompanyclassifiesjointarrangementsintojointoperationsandjointventuresbasedontherightsandobligationsarisingfromthearrangement.AjointoperationisajointarrangementwherebytheCompanyhasrightstotheassetsandobligationsfortheliabilitiesrelatingtothearrangement.AjointventureisajointarrangementwherebytheCompanyhasrightstothenetassetsofthearrangement.TheCompanyaccountsforitsinvestmentsinjointventuresusingtheequitymethod,applyingtheaccountingpoliciesdescribedinNoteV.14(2)②"Long-termEquityInvestmentsAccountedforUsingtheEquityMethod".Asajointoperatorinajointoperation,theCompanyrecognizesitsindividuallyheldassetsandassumedliabilities,aswellasitsshareofjointlyheldassetsandjointlyassumedliabilities;recognizesrevenuefromthesaleofitsshareoftheoutputfromthejointoperation;recognizesitsshareofrevenuearisingfromthesaleofoutputbythejointoperation;andrecognizesexpensesitincursindividuallyaswellasitsshareofexpensesincurredbythejointoperation.WhentheCompany,asajointoperator,contributesorsellsassets(whichdonotconstituteabusiness,thesamebelow)toajointoperation,orpurchasesassetsfromajointoperation,theCompanyonlyrecognizestheportionofgainsorlossesarisingfromthetransactionthatisattributabletotheotherjointoperatorsuntilsuchassetsaresoldtothirdparties.IftheseassetsmeetthecriteriaforimpairmentlossesasstipulatedinAccountingStandardsforBusinessEnterprisesNo.8-ImpairmentofAssetsandotherrelevantstandards,theCompanyfullyrecognizessuchlossesforassetscontributedorsoldtothejointoperationbytheCompany,andrecognizesitsshareofsuchlossesforassetspurchasedfromthejointoperationbytheCompany.
8.DeterminationofcashandcashequivalentsTheCompany’scashandcashequivalentsincludecashonhand,depositsthatcanbeusedforpaymentatanytime,investmentsthatownedbytheCompanywhichareinshort-term(usuallyduewithinthreemonthsfromthepurchasedate),highlyliquid,easytoconverttoaknownamountofcash,lowriskofvaluechange.
9.Foreigncurrencyoperations
(1)TranslationMethodsforForeignCurrencyTransactionsTheCompanytranslatesforeigncurrencytransactionsintothefunctionalcurrencyamountatthespotexchangerateonthetransactiondateuponinitialrecognition.However,forforeigncurrencyexchangetransactionsortransactionsinvolvingcurrencyexchangeconductedbytheCompany,theactualexchangerateadoptedisusedfor
translationintothefunctionalcurrencyamount.
(2)TranslationMethodsforForeignCurrencyMonetaryItemsandNon-monetaryItemsAtthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedusingthespotexchangerateonthatdate.Theresultingexchangedifferencesarerecognizedinprofitorloss,exceptfor:①exchangedifferencesarisingfromforeigncurrency-specificborrowingsrelatedtotheacquisitionorconstructionofqualifyingassets,whichareaccountedforinaccordancewiththeprinciplesforcapitalizingborrowingcosts;and②exchangedifferencesarisingfromchangesinthecarryingamountofavailable-for-saleforeigncurrencymonetaryitemsotherthanamortizedcost,whicharerecognizedinothercomprehensiveincome.Non-monetaryitemsdenominatedinforeigncurrencyandmeasuredathistoricalcostcontinuetobetranslatedusingthespotexchangerateonthetransactiondate.Non-monetaryitemsdenominatedinforeigncurrencyandmeasuredatfairvaluearetranslatedusingthespotexchangerateonthedatewhenthefairvalueisdetermined.Thedifferencebetweenthetranslatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamountistreatedasafairvaluechange(includingexchangerateeffects)andrecognizedinprofitorlossorothercomprehensiveincome.
10.FinancialInstrumentsAfinancialassetorfinancialliabilityisrecognizedwhentheCompanybecomesapartytothefinancialinstrumentcontract.
(1)Classification,confirmationandmeasurementoffinancialassetsBasedonbusinessmodelofmanagingfinancialassetsandcontractualcashflowcharacteristicsoffinancialassets,theCompanydividesfinancialassetsinto:financialassetsmeasuredatamortizedcost;financialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome;financialassetsmeasuredatfairvaluethroughprofitandloss.Financialassetsaremeasuredatfairvalueatinitialrecognition.Forthefinancialassetsatfairvalueandthroughcurrentprofitorloss,thetransactionexpensesthereofshouldberecognizeddirectlyinprofitorloss;forothercategoriesoffinancialassets,thetransactionexpensesthereofshouldberecognizedintoinitiallyrecognizedamount.Fortheaccountsreceivableorbillsreceivablearisingfromproductsalesorlaborserviceprovisionexcludingornotconsideringsignificantfinancingcomponents,theCompanyregardstheamountofconsiderationexpectedtochargeastheinitialrecognitionamount.
①FinancialassetsmeasuredatamortizedcostsThecorporatebusinessmodelformanagingfinancialassetsmeasuredatamortizedcostaimsatchargingcontractualcashflow,andthecontractualcashflowcharacteristicsofsuchfinancialassetsareconsistentwithbasicborrowingandloanarrangements,namelycashflowisgeneratedonaspecificdate,onlyforpaymentofprincipalandinterestsbasedonoutstandingprincipalamount.TheCompanyutilizeseffectiveinterestratemethodforsuchfinancialassets,andperformssubsequentmeasurementasperamortizedcost,withgainsorlossesarisingfromamortizationorimpairmentincludedincurrentprofitsandlosses.
②FinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeThecorporatebusinessmodelformanagingsuchfinancialassetsaimsatbothcontractualcashflowchargingandsales,andthecontractualcashflowcharacteristicsofsuchfinancialassetsareconsistentwithbasicborrowingandloanarrangements.TheCompanymeasuressuchfinancialassetsatfairvaluewithchangesincludedinothercomprehensiveincome,butimpairmentlossesorgains,exchangegainsandlosses,andinterestincomecalculatedaccordingtotheactualinterestratemethodareincludedincurrentprofitsandlosses.
Inaddition,theCompanydesignatessomenon-tradingequityinstrumentinvestmentsasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.TheCompanyrecordsrelevantdividendincomeofsuchfinancialassetsintocurrentprofitsandlosses,andrecordsfairvaluechangesintoothercomprehensiveincome.Whensuchfinancialassetsarederecognized,thecumulativegainsorlossespreviouslyrecordedinothercomprehensiveincomewilltransferfromothercomprehensiveincomeintoretainedearnings,excludedincurrentprofitsandlosses.
③FinancialLiabilitiesmeasuredatfairvaluethroughprofitandlossTheCompanyclassifiestheabovefinancialassetsmeasuredatamortizedcostandthefinancialassetsotherthanthefinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeasthefinancialassetsmeasuredatfairvaluethroughprofitandloss.Inaddition,duringinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theCompanydesignatessomefinancialassetsasfinancialassetsmeasuredatfairvaluethroughprofitandloss.Forsuchfinancialassets,theCompanyusesfairvalueforsubsequentmeasurement,andfairvaluechangesareincludedincurrentprofitsandlosses.
(2)Classification,recognitionandmeasurementoffinancialliabilitiesFinancialliabilitiesareclassifiedduringinitialrecognitionasthefinancialliabilitiesmeasuredatfairvaluethroughprofitandloss,andotherfinancialliabilities.Forfinancialliabilitiesatfairvaluethroughprofitorloss,thetransactionexpensesthereofshouldberecognizeddirectlyincurrentprofitorloss,andforotherfinancialliabilities,thetransactionexpensesthereofshouldberecognizedintoinitiallyrecognizedamount.
①FinancialliabilitiesmeasuredatfairvaluethroughprofitandlossFinancialliabilitiesmeasuredatfairvaluethroughprofitandlosscontaintransactionalfinancialliabilities(includingderivativesthatbelongtofinancialliabilities)andfinancialliabilitiesdesignatedasmeasuredatfairvalueduringinitialrecognitionwithchangesincludedincurrentprofitsandlosses.Transactionalfinancialliabilities(includingderivativesthatbelongtofinancialliabilities)aresubsequentlymeasuredatfairvalue,andexceptforhedgeaccounting-related,thefairvaluechangesareincludedincurrentprofitsandlosses.Thefinancialliabilitiesdesignatedasmeasuredatfairvaluewithchangesincludedincurrentprofitsandlosses,suchliabilitiesarecausedbytheCompany’sowncreditriskchanges,withfairvaluechangesincludedinothercomprehensiveincome,andwhentheliabilitiesarederecognized,theyareincludedinothercomprehensiveincome,causedbyowncreditriskchanges,withcumulativefairvaluechangestransferredintoretainedearnings.Theremainingfairvaluechangesareincludedincurrentprofitsandlosses.Iftreatmentofowncreditriskchangeimpactofsuchfinancialliabilitiesintheabovemannerwillcauseorexpandaccountingmismatchinprofitsandlosses,theCompanyincludesallgainsorlossesofsuchfinancialliabilities(includingtheamountofcorporateowncreditriskchangeimpact)incurrentprofitsandlosses.
②OtherfinancialliabilitiesExceptthefinancialliabilitiesandfinancialguaranteecontractarisingfromfinancialassettransferatvariancewithderecognitionconditionsorcontinuousinvolvementoftransferredfinancialassets,otherfinancialliabilitiesareclassifiedasfinancialliabilitiesmeasuredatamortizedcost,andsubsequentlymeasuredatamortizedcost,withgainsorlossesresultingfromderecognitionoramortizationincludedincurrentprofitsandlosses.
(3)RecognitionbasisandmeasurementmethodoffinancialassetstransferFinancialassetsarederecognizedinoneofthefollowingconditions:①thecontractualrighttoreceivecashflowofsuchfinancialassetsisterminated;②suchfinancialassetshavebeentransferred,andalmostallrisksandrewardsonthefinancialassetOwnershiparetransferredtothetransferee;③suchfinancialassetshavebeentransferred,andalthoughtheCompanyhasneithertransferrednorretainedalmostallrisksandrewardsonthe
financialassetOwnership,ithasgivenupcontrolofsuchfinancialassets.IftheenterpriseneithertransfersnorretainssubstantiallyalltherisksandrewardsofOwnershipofafinancialasset,andithasnotabandonedthecontrolofthatfinancialasset,therelevantfinancialassetisrecognizedattheextentofcontinuinginvolvementinthetransferredfinancialassetandthecorrespondingliabilityisrecognizedaccordingly.Thedegreeofcontinuousinvolvementinthetransferredfinancialassetreferstotherisklevelthattheenterprisefacesduetothechangeofthevalueofthefinancialasset.Whereatransferofafinancialassetinitsentirelymeetsthecriteriaofde-recognition,thedifferencebetweenthecarryingamountofthefinancialassettransferredandthesumoftheconsiderationreceivedfromthetransferandanycumulativechangeinfairvaluethathasbeenrecognizedinothercomprehensiveincomeisrecognizedincurrentprofitorloss.Whereatransferoffinancialassetpartlymeetsthecriteriaofde-recognition,thecarryingamountofthefinancialassettransferredshouldbeamortizedbetweenthepartthatisderecognizedandthepartthatisnotderecognizedaccordingtothefairvalue,andthedifferencebetweenthesumoftheconsiderationreceivedfromthetransferandanycumulativechangeinfairvaluethathasbeenrecognizedinothercomprehensiveincomeandshouldbeamortizedtothederecognizedpart,andtheamortizedabove-mentionedcarryingamount,shallberecordedintocurrentprofitorloss.WhentheCompanyusesfinancialassetssoldwithrecourseorsellsfinancialassetsheldinanendorsement,itmustdeterminewhetherallrisksandrewardsofOwnershipofthefinancialassetshavebeenalmosttransferred.IfalltherisksandrewardsofOwnershipofthefinancialassetarealmosttransferredtothetransferee,andthefinancialassetisderecognized;ifalltherisksandrewardsontheOwnershipofthefinancialassetareretained,thefinancialassetisnotderecognized;alltherisksandrewardsofOwnershipoffinancialassetsarenotalmosttransferredorretained,continuetodeterminewhethertheCompanyretainsthecontrolovertheassetsandperformtheaccountingoperationbasedontheprinciplesdescribedintheprecedingparagraphs.
(4)De-recognitionoffinancialliabilitiesIfcurrentobligationsoffinancialliabilities(orapartthereof)areremoved,theCompanyderecognizessuchfinancialliabilities(orapartthereof).IftheCompany(borrower)signsanagreementwiththelender,toreplacetheoriginalfinancialliabilitiesbybearingnewfinancialliabilities,andcontractclausesofnewfinancialliabilitiesandoriginalfinancialliabilitiesaresubstantiallydifferent,theoriginalfinancialliabilitiesarederecognized,whilerecognizinganewfinancialliability.IftheCompanymakessubstantialmodificationtothecontractualclausesoforiginalfinancialliabilities(orapartthereof),theoriginalfinancialliabilitiesarederecognized,andanewfinancialliabilityisrecognizedaccordingtotheclausesaftermodification.Iffinancialliabilities(orapartthereof)arederecognized,theCompanyrecordsthedifferencebetweentheirbookvalueandconsiderationpaid(includingnon-cashassetstransferredoutorliabilitiesassumed)intocurrentprofitsandlosses.
(5)OffsetoffinancialassetsandfinancialliabilitiesWhentheCompanyhaslegalrighttooffsetfinancialassetsandfinancialliabilitiesoftherecognizedamount,andsuchlegalrightsarecurrentlyenforceable,meanwhile,theCompanyplanstosettlebynetassetsorconcurrentlyliquidatesuchfinancialassetsandrepaysuchfinancialliabilities,financialassetsandfinancialliabilitiesarepresentedinthebalancesheetbynetamountsaftermutualoffset.Inaddition,financialassetsandfinancialliabilitiesareseparatelypresentedinthebalancesheet,whicharenotoffsetbyeachother.
(6)DeterminingmethodofthefairvalueoffinancialassetsandfinancialliabilitiesFairvaluereferstothepricethatamarketparticipantcanbereceivedforthesaleofanassetorthepriceheneedstopayfortransferringaliabilityinanorderlytransactionoccurringonthemeasurementdate.Wherethefinancial
instrumentsexistonactivemarket,theCompanydeterminestheirfairvaluebyusingquotationonactivemarket.Quotedmarketpricesinanactivemarketrefertothepricesthatarereadilytogetregularlyfromtheexchange,thebroker,thetradeassociation,pricingservicesinstitution,etc.,andtheyrepresenttheactualmarkettransactionpricesinthefairtransactions.Wherethefinancialinstrumentsdonotexistonactivemarket,theCompanydeterminestheirfairvaluebyusingvaluationtechniques.Valuationtechniquesincludereferstothepricesusedinrecentmarkettransactionsbythepartiesthatarefamiliartothesituationandarevoluntarytoparticipateinthetransaction,referstothecurrentfairvaluesofotheressentiallythesamefinancialinstruments,discountcashflowvaluation,optionpricingmodels,etc.Atthetimeofvaluation,theCompanyleveragesvaluationtechniquesthatareapplicableinthecurrentcircumstancesandadequatelysupportedbyavailabledataandotherinformation,choosestheinputvalueconsistentwiththecharacteristicsofassetsorliabilitiesconsideredbymarketparticipantsintransactionofrelevantassetsorliabilities,andpreferstousetherelevantobservableinputvalue.Thevaluethatcannotbeinputtedisutilized,whentherelevantobservableinputvalueisunavailableorunfeasibletoobtain.
11.ImpairmentoffinancialassetsTheCompanyassessesimpairmentlossesforthefollowingfinancialassets:Financialassetsmeasuredatamortizedcost;Debtinstrumentsmeasuredatfairvaluethroughothercomprehensiveincome(FVOCI);Theseprimarilyinclude:Notesreceivable;Accountsreceivable;Contractassets;Otherreceivables;Debtinvestments;Otherdebtinvestments;Long-termreceivables;Additionally,impairmentprovisionsandcreditimpairmentlossesforcertainfinancialguaranteecontractsarerecognizedinaccordancewiththeaccountingpoliciesoutlinedbelow.
(1)MethodforRecognizingImpairmentProvisionsTheCompanymeasuresexpectedcreditlosses(ECL)fortheaboveitemsusingeitherthegeneralapproachorthesimplifiedapproach,dependingontheirapplicability,andrecognizescorrespondingcreditimpairmentlosses.CreditlossreferstothepresentvalueofallcontractualcashflowstheCompanyisentitledtoreceiveunderthecontract,discountedattheoriginaleffectiveinterestrate,minusthepresentvalueofallexpectedcashflowstobecollected.Forpurchasedororiginatedcredit-impaired(POCI)financialassets,thediscountrateappliedisthecredit-adjustedeffectiveinterestrate.GeneralApproachforECLMeasurementAteachreportingdate,theCompanyassesseswhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition:
Ifcreditriskhasincreasedsignificantly,theCompanymeasuresthelossallowanceatanamountequaltolifetimeECL.Ifcreditriskhasnotincreasedsignificantly,thelossallowanceismeasuredat12-monthECL.Theassessmentincorporatesallreasonableandsupportableinformation,includingforward-lookingdata.Forfinancialinstrumentswithlowcreditriskatthereportingdate,theCompanyassumesnosignificantincreaseincreditrisksinceinitialrecognitionandappliesthe12-monthECLapproach.
(2)CriteriaforDeterminingSignificantIncreaseinCreditRiskAsignificantincreaseincreditriskispresumediftheprobabilityofdefault(PD)overtheremaininglifetimeatthereportingdateissubstantiallyhigherthanthePDestimatedatinitialrecognition.Unlessexceptionalcircumstancesexist,theCompanyuseschangesinthe12-monthPDasareasonableproxyforlifetimePDchangestodeterminewhethercreditriskhasincreasedsignificantly.Factorsconsideredinassessingsignificantincreasesincreditrisk:
Actualorexpectedmaterialdeteriorationinthedebtor’soperatingperformance;
Materialadversechangesinthedebtor’sregulatory,economic,ortechnologicalenvironment;Significantdeclineincollateralvalueorqualityofthird-partyguarantees/creditenhancements,whichmayreducethedebtor’seconomicincentivetorepayoraffectPD;Materialchangesinthedebtor’sexpectedbehaviororrepaymentpatterns;ChangesintheCompany’screditmanagementpracticesforthefinancialinstrument.Lowcreditriskpresumption:
Atthereportingdate,ifafinancialinstrumentisdeterminedtohavelowcreditrisk,theCompanyassumesnosignificantincreaseincreditrisksinceinitialrecognition.Afinancialinstrumentisconsideredlowriskif:
Thedebtorhasastrongcapacitytomeetshort-termcontractualcashflowobligations;Adverseeconomicoroperationalconditionsoveralongerperiodwouldnotnecessarilyimpairthedebtor’sabilitytofulfillitsobligations.
(3)Portfolio-BasedAssessmentofExpectedCreditRiskTheCompanyevaluatescreditriskindividuallyforfinancialassetswithdistinctlydifferentriskprofiles,suchas:
Receivablesunderdispute,litigation,orarbitration;Receivableswithclearevidenceindicatingthedebtor’sinabilitytorepay.Forallotherfinancialassets,theCompanygroupsthembasedonsharedcreditriskcharacteristics,including:
FinancialinstrumenttypeCreditriskratingAgingprofile(e.g.,current,overduesegments)
(4)AccountingTreatmentforFinancialAssetImpairmentAtperiod-end,theCompanycalculatesECLforeachcategoryoffinancialassets:
IftheECLexceedsthecurrentcarryingamountoftheimpairmentallowance,thedifferenceisrecognizedasanimpairmentloss;IftheECLislowerthanthecurrentallowance,thedifferenceisrecognizedasanimpairmentgain.
(5)Methodforrecognizingcreditlossesofvariousfinancialassets
①BillsreceivableTheCompanymeasureslossprovisionforbillsreceivablebasedontheamountequivalenttoexpectedcreditlossesthroughouttheexistenceperiod.Basedoncreditriskcharacteristicsofbillsreceivable,theyaredividedintodifferentportfolios:
Items
| Items | Basisofdeterminingtheportfolio |
| Bankacceptancebill | Acceptorsarebankswithlowcreditrisks |
| BankAcceptanceDraft(IssuedbyFinanceCompanies) | IssuedbyFinanceCompanies |
| Commercialacceptancebill | Allofcommercialacceptancebill |
②AccountsreceivableandcontractassetsWithregardtoaccountsreceivableandcontractassetsexcludingmajorfinancingcomponents,theCompanymeasureslossreserveattheamountequivalenttotheexpectedcreditlossthroughouttheduration.Withregardtoaccountsreceivableandcontractassetsincludingmajorfinancingcomponents,theCompanychoosestoalwaysmeasurelossreserveattheamountequivalenttotheexpectedcreditlossthroughouttheduration.
Inadditiontoaccountsreceivablewithindividualassessmentofcreditrisks,theyaredividedintodifferentportfoliosbasedontheircreditriskcharacteristics:
Items
| Items | Basisofdeterminingtheportfolio |
| Creditriskcharacteristicsportfolio | Portfoliobasedonagingofreceivablesascreditriskcharacteristic |
| Relatedpartywithinconsolidationscope | Relatedpartywithinconsolidationscope |
a.TheagingoftheCompany'sreceivablesiscalculatedfromthedateofoccurrence.Fortheportfolio,theaging-basedgroupingmethodisadoptedtomeasureexpectedcreditlosses(ECL):
| Aging | ProvisionratiosofnotesReceivable(%) | Provisionratiosofaccountsreceivable(%) | Provisionratiosofcontractassets(%) | Provisionratiosofotherreceivables(%) |
| Within1year | 2.00 | 2.00 | 2.00 | 2.00 |
| 1-2years | 5.00 | 5.00 | 5.00 | 5.00 |
| 2-3years | 15.00 | 15.00 | 15.00 | 15.00 |
| 3-4years | 30.00 | 30.00 | 30.00 | 30.00 |
| 4-5years | 60.00 | 60.00 | 60.00 | 60.00 |
| Over5years | 100.00 | 100.00 | 100.00 | 100.00 |
b.CriteriaforRecognizingIndividuallyAssessedBadDebtProvisions:
Afinancialassetisconsideredcredit-impairedwhenoneormoreeventsthathaveadetrimentalimpactontheasset'sexpectedfuturecashflowsoccur.Observableevidenceofcreditimpairmentincludes,butisnotlimitedto,thefollowing:
Theissuerordebtorisexperiencingsignificantfinancialdifficulties.Thedebtorhasbreachedcontractualterms,suchasdefaultingordelayingpaymentsofinterestorprincipal.Thecreditorhasgrantedconcessionstothedebtor(e.g.,paymentextensions,reducedinterestrates,orprincipalforgiveness)thatwouldnototherwisebeconsideredduetothedebtor'sfinancialdistress.Thedebtorislikelytoenterbankruptcyorundergofinancialrestructuring.Theactivemarketforthefinancialassethasdisappearedduetothefinancialdifficultiesoftheissuerordebtor.Thefinancialassetwasacquiredororiginatedatasignificantdiscount,reflectingincurredcreditlosses.Creditimpairmentmayresultfromacombinationoffactorsanddoesnotnecessarilystemfromasingleidentifiableevent.
③ReceivablesFinancingFinancialassetsclassifiedasnotesreceivableandaccountsreceivablemeasuredatfairvaluethroughothercomprehensiveincome(FVTOCI)shallbepresentedasfollows:
"Receivablesfinancing"forportionswithoriginalmaturitiesofoneyearorlessfromthedateofacquisition;"Otherdebtinvestments"forportionswithoriginalmaturitiesexceedingoneyearfromthedateofacquisition.
Exceptforindividuallyassessedaccountsreceivable,thesefinancialassetsaregroupedintodifferentportfoliosbasedontheircreditriskcharacteristics.
Item
| Item | Basisofdeterminingtheportfolio |
| Notesreceivable | Bankacceptancedraftsissuedbybankswithhighcreditratings |
| Accountsreceivable | Thisportfoliousestheagingofreceivablesasthecreditriskcharacteristic. |
④OtherreceivablesTheCompanymeasuresimpairmentlossesbasedonwhetherthecreditrisksofotherreceivableshaveincreasedsignificantlysinceinitialrecognition,byusingtheamountequivalenttoexpectedcreditlosseswithinthenext12monthsorthroughouttheexistenceperiod.Inadditiontootherreceivableswithindividualassessmentofcreditrisks,theyaredividedintodifferentportfoliosbasedontheircreditriskcharacteristics:
| Item | Basisofdeterminingtheportfolio |
| Agingportfolio | Otherreceivablesexcludingrelatedparties |
| Relatedpartywithinconsolidationscope | Otherreceivablesfromrelatedpartieswithinthescopeofconsolidation |
12.Inventories
(1)ClassificationofInventoriesInventoriesmainlyincluderawmaterials,materialsinoutsideprocessing,workinprogress,finishedgoods,andlow-valueconsumables.
(2)MeasurementMethodforIssuanceAllcategoriesofinventoriesarepurchasedandreceivedatplannedcosts,andissuedusingtheweightedaveragemethod.Finishedgoodscostsaretransferredatactualcostsincurredduringtheperiod,whilecostofsalesisrecognizedusingtheweightedaveragemethod.
(3)InventoryCountingSystemTheperpetualinventorysystemisadopted.
(4)AmortizationMethodforLow-ValueConsumablesandPackagingMaterialsLow-valueconsumablesarefullyamortizeduponissuance(one-timeamortizationmethod).Packagingmaterialsarefullyamortizeduponissuance(one-timeamortizationmethod).
(5)RecognitionCriteriaandProvisionMethodforInventoryWrite-DownThenetrealizablevalue(NRV)ofinventoryreferstotheestimatedsellingpriceintheordinarycourseofbusiness,minustheestimatedcoststocomplete,sellingexpenses,andrelatedtaxes.ThedeterminationofNRVisbasedonreliableevidence,whilealsoconsideringthepurposeofholdingtheinventoryandtheimpactofeventsafterthereportingperiod.Atthebalancesheetdate,inventoriesaremeasuredatthelowerofcostorNRV.Basedonacomprehensiveyear-endphysicalcount,provisionsaremadeforinventoriesthataredamaged,obsolete,pricedbelowcost,orotherwiseunrecoverable.Write-downsarerecognizedforindividualinventoryitemswherecostexceedsNRV,withthelossrecordedinprofitorloss.MethodsforDeterminingNRV:
?Finishedgoods,merchandise,andmaterialsheldforsale:NRV=Estimatedsellingprice?Estimated
sellingexpenses?Relatedtaxes.?Materialsrequiringfurtherprocessing:NRV=Estimatedsellingpriceoffinishedproducts?Estimated
coststocomplete?Estimatedsellingexpenses?Relatedtaxes.?Partialcontractpricing:Ifpartofaninventoryitemhasacontractpricewhiletheremainderdoesnot,
NRVisdeterminedseparately.?Aggregateassessment:Forinventorieswithsimilaruseorproduced/soldinthesameregion,
write-downsareassessedcollectivelyifindividualvaluationisimpractical.?High-volume,low-costitems:Write-downsareassessedbyinventorycategory.Ifthefactorsthatpreviouslycausedinventorywrite-downsnolongerexist,resultinginNRVexceedingthecarryingamount,thereversal(limitedtotheoriginalprovisionamount)isrecognizedinprofitorloss.
13.Held-for-saleandDiscontinuedOperations
(1)Non-currentAssetsandDisposalGroupsHeld-for-saleTheCompanyclassifiesanon-currentassetordisposalgroupasheld-for-saleifitscarryingamountwillberecoveredprincipallythroughasaletransaction(includingnon-monetaryassetexchangeswithcommercialsubstance,thesameappliesbelow)ratherthanthroughcontinuinguse.Thespecificcriteriaarethatallofthefollowingconditionsaremet:(i)thenon-currentassetordisposalgroupisavailableforimmediatesaleinitspresentconditionsubjectonlytotermsthatareusualandcustomaryforsalesofsuchassetsordisposalgroups;(ii)theCompanyhasapprovedthesaleplanandobtainedafirmpurchasecommitment;and(iii)thesaleisexpectedtobecompletedwithinoneyear.Adisposalgroupreferstoagroupofassetstobedisposedof,bysaleorotherwise,togetherasagroupinasingletransaction,andliabilitiesdirectlyassociatedwiththoseassetsthatwillbetransferredinthetransaction.Ifthegoodwillacquiredinabusinesscombinationwasallocatedtoacash-generatingunitorgroupofcash-generatingunitstowhichthedisposalgroupbelongsunderAccountingStandardsforBusinessEnterprisesNo.8—ImpairmentofAssets,thedisposalgroupshallincludethegoodwillallocatedtoit.Wheninitiallymeasuringorremeasuringnon-currentassetsordisposalgroupsclassifiedasheld-for-saleatthebalancesheetdate,iftheircarryingamountexceedstheirfairvaluelesscoststosell,thecarryingamountiswrittendowntofairvaluelesscoststosell.Theamountofthewrite-downisrecognizedasanimpairmentlossinprofitorlossforthecurrentperiod,andaprovisionforimpairmentofheld-for-saleassetsismade.Fordisposalgroups,therecognizedimpairmentlossisfirstallocatedtoreducethecarryingamountofanygoodwillinthedisposalgroup,andthentoreducethecarryingamountsoftheothernon-currentassetsinthedisposalgroupthataresubjecttothemeasurementrequirementsofAccountingStandardsforBusinessEnterprisesNo.42—Non-currentAssetsHeld-for-saleandDiscontinuedOperations(hereinafterreferredtoasthe"held-for-salestandards")onapro-ratabasis.Ifthefairvaluelesscoststosellofaheld-for-saledisposalgroupincreasesinsubsequentbalancesheetdates,thepreviouslyrecognizedimpairmentlossshallbereversed.Thereversalislimitedtothecumulativeimpairmentlossrecognizedforthenon-currentassetsinthedisposalgroupthataresubjecttothemeasurementrequirementsoftheheld-for-salestandardsafterclassificationasheld-for-sale,andthereversalamountisrecognizedinprofitorlossforthecurrentperiod.Thecarryingamountsofthenon-currentassetsinthedisposalgroupthataresubjecttothemeasurementrequirementsoftheheld-for-salestandards(excludinggoodwill)areincreasedonapro-ratabasisaccordingtotheirrelativecarryingamounts.Thecarryingamountofgoodwillthathasbeenreduced,aswellasimpairmentlossesrecognizedfornon-currentassetssubjecttothemeasurementrequirementsoftheheld-for-salestandardsbeforeclassificationasheld-for-sale,shallnotbe
reversed.Non-currentassetsinadisposalgroupclassifiedasheld-for-salearenotdepreciatedoramortized,whileinterestandotherexpensesonliabilitiesinaheld-for-saledisposalgroupcontinuetoberecognized.Whenanon-currentassetordisposalgroupnolongermeetsthecriteriaforclassificationasheld-for-sale,theCompanyceasestoclassifyitasheld-for-saleorremovesthenon-currentassetfromtheheld-for-saledisposalgroup,andmeasuresitatthelowerof:(i)itscarryingamountbeforeclassificationasheld-for-sale,adjustedforanydepreciation,amortization,orimpairmentthatwouldhavebeenrecognizedhaditnotbeenclassifiedasheld-for-sale;and(ii)itsrecoverableamount.
(2)CriteriaforIdentifyingandPresentationMethodsforDiscontinuedOperationsAdiscontinuedoperationisacomponentoftheCompanythateitherhasbeendisposedoforisclassifiedasheld-for-saleandmeetsanyofthefollowingcriteria:(i)thecomponentrepresentsaseparatemajorlineofbusinessorgeographicalareaofoperations;(ii)thecomponentispartofasinglecoordinatedplantodisposeofaseparatemajorlineofbusinessorgeographicalareaofoperations;or(iii)thecomponentisasubsidiaryacquiredexclusivelywithaviewtoresale.TheCompanypresentstherelevantprofitorlossfromdiscontinuedoperationsintheincomestatementanddisclosestheeffectsofdiscontinuedoperationsinthenotes.
14.Long-termEquityInvestmentsThelong-termequityinvestmentsreferredtointhissectionarethoseinwhichtheCompanyhascontrol,jointcontrol,orsignificantinfluenceovertheinvestee.Long-termequityinvestmentsinwhichtheCompanydoesnothavecontrol,jointcontrol,orsignificantinfluenceareaccountedforasfinancialassetsmeasuredatfairvaluethroughprofitorloss.Fornon-tradinginvestments,theCompanymayelectatinitialrecognitiontoclassifythemasfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincome,asdetailedinNoteV.10"FinancialInstruments."JointcontrolreferstotheCompany'ssharedcontroloveranarrangementinaccordancewithrelevantagreements,wheredecisionsregardingtherelevantactivitiesofthearrangementrequireunanimousconsentfromallpartiessharingcontrol.SignificantinfluencereferstotheCompany'spowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutnottocontrolorjointlycontrolthosepolicieswithotherparties.
(1)DeterminationofInvestmentCostForlong-termequityinvestmentsacquiredthroughbusinesscombinationsundercommoncontrol,theinitialinvestmentcostismeasuredattheshareofthecarryingvalueoftheacquiree'sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthesumofthecashpaid,thecarryingvalueofnon-cashassetstransferred,andliabilitiesassumedisadjustedagainstcapitalreserve.Ifcapitalreserveisinsufficient,theremainingdifferenceisadjustedagainstretainedearnings.Ifequityinstrumentsareissuedasconsideration,theinitialinvestmentcostismeasuredattheshareofthecarryingvalueoftheacquiree'sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthecombinationdate,withthetotalparvalueofthesharesissuedrecognizedassharecapital.Thedifferencebetweentheinitialinvestmentcostandthetotalparvalueofthesharesissuedisadjustedagainstcapitalreserve.Ifcapitalreserveisinsufficient,theremainingdifferenceisadjustedagainstretainedearnings.Forstep-by-stepacquisitionsofequityinanacquireeundercommoncontrolthatultimatelyresultinabusinesscombinationundercommoncontrol,thetransactionsareaccountedforseparatelybasedonwhethertheyconstitutea"packagetransaction."Iftheyconstitutea"packagetransaction,"thetransactionsaretreatedasasingletransactiontoobtaincontrol.Ifnot,theinitialinvestmentcostonthecombinationdateismeasuredatthe
shareofthecarryingvalueoftheacquiree'sequityintheconsolidatedfinancialstatementsoftheultimatecontrollingparty.Thedifferencebetweentheinitialinvestmentcostandthesumofthecarryingvalueofthelong-termequityinvestmentbeforethecombinationandthecarryingvalueofadditionalconsiderationpaidonthecombinationdateisadjustedagainstcapitalreserve.Ifcapitalreserveisinsufficient,theremainingdifferenceisadjustedagainstretainedearnings.Othercomprehensiveincomerecognizedforequityinvestmentsheldbeforethecombinationdateundertheequitymethodorasfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincomeisnotaccountedforatthisstage.Forlong-termequityinvestmentsacquiredthroughbusinesscombinationsnotundercommoncontrol,theinitialinvestmentcostismeasuredatthecombinationcostontheacquisitiondate.Thecombinationcostincludesthesumofthefairvalueofassetspaid,liabilitiesincurredorassumed,andequityinstrumentsissuedbytheacquirer.Forstep-by-stepacquisitionsofequityinanacquireethatultimatelyresultinabusinesscombinationnotundercommoncontrol,thetransactionsareaccountedforseparatelybasedonwhethertheyconstitutea"packagetransaction."Iftheyconstitutea"packagetransaction,"thetransactionsaretreatedasasingletransactiontoobtaincontrol.Ifnot,theinitialinvestmentcostofthelong-termequityinvestmentaccountedforunderthecostmethodisthesumofthecarryingvalueofthepreviouslyheldequityinvestmentandtheadditionalinvestmentcost.Othercomprehensiveincomerelatedtothepreviouslyheldequityinvestmentaccountedforundertheequitymethodisnotaccountedforatthisstage.Intermediaryfeessuchasaudit,legal,andvaluationconsultingservices,aswellasotherrelatedadministrativeexpensesincurredbythecombiningoracquiringpartyforthebusinesscombination,arerecognizedinprofitorlosswhenincurred.Forotherequityinvestmentsnotformedthroughbusinesscombinations,theinitialmeasurementisbasedoncost,whichisdeterminedaccordingtotheactualcashpurchasepricepaidbytheCompany,thefairvalueofequityinstrumentsissuedbytheCompany,thevalueagreedintheinvestmentcontractoragreement,thefairvalueororiginalcarryingvalueofassetsexchangedinnon-monetaryassetexchanges,orthefairvalueofthelong-termequityinvestmentitself.Directlyattributablecosts,taxes,andothernecessaryexpensesarealsoincludedintheinvestmentcost.ForadditionalinvestmentsthatenabletheCompanytoexertsignificantinfluenceorjointcontrolovertheinvestee(butnotcontrol),thecostofthelong-termequityinvestmentisthesumofthefairvalueofthepreviouslyheldequityinvestmentdeterminedinaccordancewithAccountingStandardsforBusinessEnterprisesNo.22—RecognitionandMeasurementofFinancialInstrumentsandtheadditionalinvestmentcost.
(2)SubsequentMeasurementandProfit/LossRecognitionMethodsLong-termequityinvestmentsinwhichtheCompanyhasjointcontrol(excludingjointoperations)orsignificantinfluenceareaccountedforusingtheequitymethod.Additionally,theCompany'sfinancialstatementsusethecostmethodtoaccountforlong-termequityinvestmentsthatenabletheCompanytocontroltheinvestee.
①Long-termEquityInvestmentsAccountedforUsingtheCostMethodUnderthecostmethod,long-termequityinvestmentsaremeasuredatinitialinvestmentcost,withadjustmentsmadeforadditionalinvestmentsordisposals.InvestmentincomefortheperiodisrecognizedbasedontheCompany'sshareofcashdividendsorprofitsdeclaredbytheinvestee,excludinganydividendsorprofitsdeclaredbutnotyetdistributedatthetimeofinvestment.
②Long-termEquityInvestmentsAccountedforUsingtheEquityMethodUndertheequitymethod,iftheinitialinvestmentcostexceedstheCompany'sshareoftheinvestee'sidentifiablenetassetsatfairvalueattheinvestmentdate,theinitialinvestmentcostisnotadjusted.IftheinitialinvestmentcostislessthantheCompany'sshareoftheinvestee'sidentifiablenetassetsatfairvalueattheinvestmentdate,thedifferenceisrecognizedinprofitorloss,andthecostofthelong-termequityinvestmentisadjusted
accordingly.Undertheequitymethod,theCompanyrecognizesinvestmentincomeandothercomprehensiveincomebasedonitsshareoftheinvestee'snetprofitorlossandothercomprehensiveincome,adjustingthecarryingvalueofthelong-termequityinvestmentaccordingly.ThecarryingvalueisreducedbytheCompany'sshareofprofitsorcashdividendsdeclaredbytheinvestee.Forotherchangesintheinvestee'sequitynotincludedinnetprofitorloss,othercomprehensiveincome,orprofitdistribution,thecarryingvalueofthelong-termequityinvestmentisadjustedandrecognizedincapitalreserve.Whenrecognizingtheshareoftheinvestee'snetprofitorloss,theinvestee'snetprofitisadjustedbasedonthefairvalueofidentifiableassetsattheinvestmentdate.Iftheinvestee'saccountingpoliciesorreportingperiodsdifferfromtheCompany's,theinvestee'sfinancialstatementsareadjustedtoalignwiththeCompany'spoliciesandperiodsbeforerecognizinginvestmentincomeandothercomprehensiveincome.FortransactionsbetweentheCompanyanditsassociatesorjointventureswheretheassetscontributedorsolddonotconstituteabusiness,unrealizedinternaltransactionprofitsorlossesattributabletotheCompanyareeliminatedbasedontheCompany'sshare,andinvestmentincomeisrecognizedafterthisadjustment.However,unrealizedinternaltransactionlossesattributabletoimpairmentlossesonthetransferredassetsarenoteliminated.IftheCompanycontributesassetsconstitutingabusinesstoajointventureorassociateandobtainslong-termequityinvestmentwithoutcontrol,thefairvalueofthecontributedbusinessisusedastheinitialinvestmentcostofthenewlong-termequityinvestment.Thedifferencebetweentheinitialinvestmentcostandthecarryingvalueofthecontributedbusinessisfullyrecognizedinprofitorloss.Similarly,iftheCompanysellsassetsconstitutingabusinesstoajointventureorassociate,thedifferencebetweentheconsiderationreceivedandthecarryingvalueofthebusinessisfullyrecognizedinprofitorloss.IftheCompanypurchasesassetsconstitutingabusinessfromanassociateorjointventure,thetransactionisaccountedforunderAccountingStandardsforBusinessEnterprisesNo.20—BusinessCombinations,withgainsorlossesfullyrecognized.Whenrecognizingtheshareoftheinvestee'snetlosses,thecarryingvalueofthelong-termequityinvestmentandotherlong-termintereststhatsubstantiallyconstituteanetinvestmentintheinvesteearereducedtozero.IftheCompanyhasanobligationtoassumeadditionallosses,aprovisionisrecognizedfortheestimatedobligationandincludedininvestmentlossesfortheperiod.Iftheinvesteesubsequentlyreportsnetprofits,theCompanyresumesrecognizingitsshareofprofitsafteroffsettingunconfirmedlossshares.
③AcquisitionofMinorityInterestsWhenpreparingconsolidatedfinancialstatements,thedifferencebetweentheadditionallong-termequityinvestmentfromacquiringminorityinterestsandtheshareofthesubsidiary'snetassetscalculatedbasedontheadditionalOwnershippercentage,continuouslymeasuredfromtheacquisitiondate(orcombinationdate),isadjustedagainstcapitalreserve.Ifcapitalreserveisinsufficient,theremainingdifferenceisadjustedagainstretainedearnings.
④DisposalofLong-termEquityInvestmentsInconsolidatedfinancialstatements,iftheparentpartiallydisposesofitslong-termequityinvestmentinasubsidiarywithoutlosingcontrol,thedifferencebetweenthedisposalproceedsandtheshareofthesubsidiary'snetassetscorrespondingtothedisposedlong-termequityinvestmentisrecognizedinequity.Ifthepartialdisposalresultsinlossofcontroloverthesubsidiary,therelevantaccountingpolicydescribedinNote5.6(2)"PreparationMethodsforConsolidatedFinancialStatements"applies.Forotherdisposalsoflong-termequityinvestments,thedifferencebetweenthecarryingvalueofthedisposedequityandtheactualproceedsisrecognizedinprofitorloss.Forlong-termequityinvestmentsaccountedforundertheequitymethod,iftheremainingequityafterdisposal
continuestobeaccountedforundertheequitymethod,theportionofothercomprehensiveincomepreviouslyrecognizedinequityisaccountedforonthesamebasisasiftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Changesinequityrecognizedduetootherchangesintheinvestee'sequity(excludingnetprofitorloss,othercomprehensiveincome,andprofitdistribution)areproportionallyreclassifiedtoprofitorloss.Forlong-termequityinvestmentsaccountedforunderthecostmethod,iftheremainingequityafterdisposalcontinuestobeaccountedforunderthecostmethod,othercomprehensiveincomerecognizedbeforeobtainingcontrolundertheequitymethodorfinancialinstrumentstandardsisaccountedforonthesamebasisasiftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitiesandproportionallyreclassifiedtoprofitorloss.Changesinequityrecognizedundertheequitymethodduetootherchangesintheinvestee'sequity(excludingnetprofitorloss,othercomprehensiveincome,andprofitdistribution)areproportionallyreclassifiedtoprofitorloss.IftheCompanylosescontrolofaninvesteeduetopartialdisposalofequityinvestments,initsseparatefinancialstatements,theremainingequitythatenablestheCompanytoexertjointcontrolorsignificantinfluenceovertheinvesteeisreclassifiedtotheequitymethod,withadjustmentsmadeasiftheequitymethodhadbeenappliedfromtheinitialacquisition.Iftheremainingequitydoesnotenablejointcontrolorsignificantinfluence,itisreclassifiedunderthefinancialinstrumentstandards,withthedifferencebetweenfairvalueandcarryingvalueatthedateoflosingcontrolrecognizedinprofitorloss.Othercomprehensiveincomerecognizedbeforeobtainingcontrolundertheequitymethodorfinancialinstrumentstandardsisaccountedforonthesamebasisasiftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Changesinequityrecognizedundertheequitymethodduetootherchangesintheinvestee'sequity(excludingnetprofitorloss,othercomprehensiveincome,andprofitdistribution)arereclassifiedtoprofitorlossatthedateoflosingcontrol.Forremainingequityaccountedforundertheequitymethod,othercomprehensiveincomeandotherequitychangesareproportionallyreclassified.Forremainingequityreclassifiedunderthefinancialinstrumentstandards,othercomprehensiveincomeandotherequitychangesarefullyreclassified.IftheCompanylosesjointcontrolorsignificantinfluenceoveraninvesteeduetopartialdisposalofequityinvestments,theremainingequityisreclassifiedunderthefinancialinstrumentstandards,withthedifferencebetweenfairvalueandcarryingvalueatthedateoflosingjointcontrolorsignificantinfluencerecognizedinprofitorloss.Othercomprehensiveincomerecognizedundertheequitymethodisaccountedforonthesamebasisasiftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitieswhentheequitymethodisdiscontinued.Changesinequityrecognizedduetootherchangesintheinvestee'sequity(excludingnetprofitorloss,othercomprehensiveincome,andprofitdistribution)arefullyreclassifiedtoinvestmentincomewhentheequitymethodisdiscontinued.IftheCompanydisposesofitsequityinvestmentsinasubsidiarystep-by-stepthroughmultipletransactionsuntilcontrolislost,andthesetransactionsconstitutea"packagetransaction,"theyaretreatedasasingletransactiontodisposeofthesubsidiary'sequityinvestmentsandlosecontrol.Beforelosingcontrol,thedifferencebetweenthedisposalproceedsandthecarryingvalueofthedisposedequitycorrespondingtothelong-termequityinvestmentisinitiallyrecognizedinothercomprehensiveincomeandreclassifiedtoprofitorlossatthetimecontrolislost.
15.InvestmentPropertiesInvestmentpropertiesrefertopropertiesheldtoearnrentalincomeorforcapitalappreciation,orboth.Theseincludeleasedlanduserights,landuserightsheldforfutureappreciationandtransfer,andleasedbuildings.Investmentpropertiesareinitiallymeasuredatcost.SubsequentexpendituresrelatedtoinvestmentpropertiesarecapitalizedifitisprobablethatfutureeconomicbenefitsassociatedwiththepropertywillflowtotheCompanyandthecostcanbemeasuredreliably.Allothersubsequentexpendituresarerecognizedinprofitorlossas
incurred.TheCompanyappliesthecostmodelforsubsequentmeasurementofinvestmentpropertiesanddepreciatesoramortizesthemusingpoliciesconsistentwiththoseappliedtobuildingsorlanduserights.TheimpairmenttestingmethodandprovisionmethodforinvestmentpropertiesaredetailedinNoteV.20"ImpairmentofLong-termAssets."Whenowner-occupiedpropertiesorinventoriesareconvertedtoinvestmentproperties,orviceversa,thecarryingamountpriortoconversionisusedasthepost-conversioncarryingamount.Whentheuseofaninvestmentpropertychangestoowner-occupied,thepropertyisreclassifiedasfixedassetsorintangibleassetsfromthedateofchange.Whentheuseofowner-occupiedpropertychangestorentalorcapitalappreciationpurposes,thefixedassetorintangibleassetisreclassifiedasaninvestmentpropertyfromthedateofchange.Forconversions:
Toinvestmentpropertiesmeasuredusingthecostmodel,thepre-conversioncarryingamountisusedasthepost-conversioncarryingamount.Toinvestmentpropertiesmeasuredusingthefairvaluemodel,thefairvalueattheconversiondateisusedasthepost-conversioncarryingamount.Aninvestmentpropertyisderecognizedwhendisposedoforpermanentlywithdrawnfromusewithnoexpectedfutureeconomicbenefits.Gainsorlossesfromthesale,transfer,retirement,ordamageofinvestmentpropertiesarecalculatedasthedisposalproceedsminusthecarryingamountandrelatedtaxes/expenses,andarerecognizedinprofitorloss.
16.FixedAssets
(1)RecognitionCriteriaforFixedAssetsFixedassetsaretangibleassetsheldfortheproductionofgoods,provisionofservices,rental,oradministrativepurposeswithausefullifeexceedingoneaccountingyear.FixedassetsarerecognizedonlywhenitisprobablethatrelatedeconomicbenefitswillflowtotheCompanyandtheircostscanbereliablymeasured.Fixedassetsareinitiallymeasuredatcost,takingintoaccounttheeffectsofestimatedabandonmentcosts.
(2)DepreciationMethodsforVariousCategoriesofFixedAssetsDepreciationoffixedassetsiscalculatedonastraight-linebasisovertheirusefullives,commencingfromthemonthfollowingthedatewhentheassetsarereadyforintendeduse.Theusefullives,estimatedresidualvalues,andannualdepreciationratesforeachcategoryoffixedassetsareasfollows:
Category
| Category | Depreciationmethod | Estimatedusefullife(years) | Depreciationrate(%) |
| Housesandbuildings | Straight-linemethod | 20-40 | 2.50-5 |
| Machineryequipment | Straight-linemethod | 6-15 | 6.67-16.67 |
| Transportationequipment | Straight-linemethod | 5-10 | 10-20 |
| Otherequipment | Straight-linemethod | 5-10 | 10-20 |
(2)EstimatedresidualvaluereferstotheamountthattheCompanycurrentlyexpectstoobtainfromdisposaloftheasset,afterdeductingestimateddisposalexpenses,assumingthefixedassethasreachedtheendofitsexpected
usefullifeandisintheexpectedconditionatthattime.
(3)TheimpairmenttestingmethodandprovisionmethodforfixedassetsaredetailedinNoteV.20"ImpairmentofLong-termAssets."
(4)OtherDisclosuresSubsequentexpendituresrelatedtofixedassetsarecapitalizedifitisprobablethatfutureeconomicbenefitsassociatedwiththefixedassetwillflowtotheCompanyandthecostcanbemeasuredreliably.Thecarryingamountofreplacedpartsisderecognized.Allothersubsequentexpendituresarerecognizedinprofitorlossasincurred.Afixedassetisderecognizedwhenitisdisposedoforwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Gainsorlossesarisingfromthesale,transfer,retirementordamageoffixedassetsarecalculatedasthedisposalproceedsminusthecarryingamountandrelatedtaxes/expenses,andarerecognizedinprofitorloss.TheCompanyreviewstheusefullives,estimatedresidualvaluesanddepreciationmethodsoffixedassetsatleastateachfinancialyear-end.Changesinestimatesareaccountedforaschangesinaccountingestimates.
17.ConstructioninprogressTheCompanyclassifiesconstructioninprogressintotwotypes:self-constructedandcontractor-constructed.Constructioninprogressistransferredtofixedassetswhentheprojectiscompletedandreachestheintendedusablecondition.Thecriteriafordeterminingtheintendedusableconditionshallmeetanyofthefollowingcircumstances:
?Thephysicalconstruction(includinginstallation)ofthefixedassethasbeenfullycompletedor
substantiallycompleted;?Trialproductionortestoperationhasbeenconducted,andtheresultsindicatethattheassetcanoperatenormallyorstablyproducequalifiedproducts,orthetestoperationresultsshowthatitcanoperateorfunctionnormally;?Theamountofexpendituresontheconstructionofthefixedassetisminimaloralmostnolonger
occurs;?Theconstructedoracquiredfixedassethasmetorsubstantiallymetthedesignorcontractrequirements.Whenconstructioninprogressreachestheintendedusablecondition,itistransferredtofixedassetsattheactualprojectcost.Forprojectsthathavereachedtheintendedusableconditionbuthavenotyetcompletedfinalsettlement,theyarefirsttransferredtofixedassetsatanestimatedvalue.Afterfinalsettlementiscompleted,theoriginalprovisionalvalueisadjustedtotheactualcost,butnoadjustmentismadetopreviouslycalculateddepreciation.TheimpairmenttestingmethodandprovisionmethodforconstructioninprogressaredetailedinNoteV.20"ImpairmentofLong-termAssets."
18.BorrowingCostsBorrowingcostsincludeinterestexpensesonborrowings,amortizationofdiscountsorpremiums,ancillarycosts,andexchangedifferencesarisingfromforeigncurrencyborrowings.Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalizedwhen:
?Expendituresfortheassethavebeenincurred;?Borrowingcostshavebeenincurred;and
?Activitiesnecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Capitalizationceaseswhenthequalifyingassetreachesitsintendedusableorsaleablecondition.Allotherborrowingcostsarerecognizedasexpensesintheperiodinwhichtheyareincurred.Forspecificborrowings,theamounttobecapitalizedistheactualinterestexpenseincurredduringtheperiod,lessanyinterestincomeearnedontheunusedportionoftheborrowingsdepositedinbanksorfromtemporaryinvestments.Forgeneralborrowings,theamounttobecapitalizedisdeterminedbymultiplyingtheweightedaverageofaccumulatedexpendituresonthequalifyingassetinexcessofspecificborrowingsbythecapitalizationrateapplicabletothegeneralborrowings.Thecapitalizationrateiscalculatedbasedontheweightedaverageinterestrateofthegeneralborrowings.Duringthecapitalizationperiod,exchangedifferencesonforeigncurrencyspecificborrowingsarefullycapitalized,whileexchangedifferencesonforeigncurrencygeneralborrowingsarerecognizedinprofitorloss.Aqualifyingassetreferstoassetssuchasfixedassets,investmentpropertiesandinventoriesthatrequireasubstantialperiodoftimefortheiracquisition,constructionorproductionbeforetheyarereadyfortheirintendeduseorsale.Iftheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyandtheinterruptionlastsformorethanthreeconsecutivemonths,thecapitalizationofborrowingcostsshallbesuspendeduntiltheacquisition,constructionorproductionactivitiesrecommence.Aqualifyingassetreferstoassetssuchasfixedassets,investmentpropertiesandinventoriesthatrequireasubstantialperiodoftimefortheiracquisition,constructionorproductionbeforetheyarereadyfortheirintendeduseorsale.
19.IntangibleAssets
(1)IntangibleAssetsIntangibleassetsrefertoidentifiablenon-monetaryassetswithoutphysicalformthatareownedorcontrolledbytheCompany.Intangibleassetsareinitiallymeasuredatcost.ExpendituresrelatedtointangibleassetsarecapitalizedifitisprobablethatfutureeconomicbenefitswillflowtotheCompanyandthecostscanbereliablymeasured.Allotherexpendituresarerecognizedasexpenseswhenincurred.Landuserightsacquiredarenormallyaccountedforasintangibleassets.Forself-constructedbuildingssuchasfactories,therelatedlanduserightsexpendituresandbuildingconstructioncostsareaccountedforasintangibleassetsandfixedassetsseparately.Forpurchasedbuildings,thepurchasepriceisallocatedbetweenthelanduserightsandbuildings.Iftheallocationcannotbemadereasonably,theentireamountisaccountedforasfixedassets.Intangibleassetswithfiniteusefullivesareamortizedonastraight-linebasisovertheirestimatedusefullivesfromthedatewhentheyareavailableforuse,basedontheoriginalcostlessestimatedresidualvalueandaccumulatedimpairmentlosses.Intangibleassetswithindefiniteusefullivesarenotamortized.Attheendofeachperiod,theusefullivesandamortizationmethodsofintangibleassetswithfiniteusefullivesarereviewed.Anychangesaretreatedaschangesinaccountingestimates.Inaddition,theusefullivesofintangibleassetswithindefiniteusefullivesarereviewed.Ifevidenceindicatesthattheperiodofeconomicbenefitsfromtheintangibleassetisforeseeable,itsusefullifeisestimatedandamortizedaccordingtothepolicyforintangibleassetswithfiniteusefullives.
(2)ResearchandDevelopmentExpendituresTheCompanyclassifiesinternalresearchanddevelopmentprojectexpendituresintoresearchphaseexpendituresanddevelopmentphaseexpenditures.Expendituresintheresearchphasearerecognizedasexpenseswhenincurred.TheCompany'sR&Dexpendituresincludematerialsconsumed,laborandservicecosts,amortizationofR&Dequipment,amortizationofotherintangibleassetsandfixedassetsusedinthedevelopmentprocess,andutilitiesexpenses.TheCompany'sspecificcriteriafordistinguishingbetweenresearchphaseanddevelopmentphaseexpenditures:
Theresearchphasereferstothestageoforiginalandplannedinvestigationundertakentogainnewscientificortechnicalknowledge.Thedevelopmentphasereferstothestageofapplyingresearchfindingsorotherknowledgetoaplanordesigntoproduceneworsubstantiallyimprovedmaterials,devices,products,etc.beforecommercialproductionoruse.Developmentphaseexpendituresarerecognizedasintangibleassetsonlywhenallthefollowingconditionsaremet.Otherwise,theyarerecognizedasexpenseswhenincurred:
①Technicalfeasibilityofcompletingtheintangibleassetforuseorsale;
②Intentiontocompleteanduseorselltheintangibleasset;
③Abilitytogenerateeconomicbenefits,includingdemonstratingamarketforproductsusingtheintangibleassetorfortheintangibleassetitself,oritsusefulnessforinternaluse;
④Availabilityofadequatetechnical,financialandotherresourcestocompletedevelopmentandtouseorselltheintangibleasset;
⑤Abilitytoreliablymeasureexpendituresattributabletothedevelopmentphase.TheCompany'sspecificconditionsforcapitalizingdevelopmentphaseexpenditures:technicalfeasibilityofcompletion;intentiontocompleteanduse/sell;abilitytogenerateeconomicbenefits;availabilityofadequateresources;andreliablemeasurementofattributableexpenditures.Ifresearchphaseanddevelopmentphaseexpenditurescannotbedistinguished,allR&Dexpendituresarerecognizedasexpenseswhenincurred.
(3)ImpairmentTestingMethodandProvisionMethodforIntangibleAssetsTheimpairmenttestingmethodandprovisionmethodforintangibleassetsaredetailedinNoteV.20"ImpairmentofLong-termAssets."
20.Long-termAssetImpairmentFornon-currentnon-financialassetssuchasfixedassets,constructioninprogress,intangibleassetswithfiniteusefullives,right-of-useassets,investmentpropertiesmeasuredatcostmodel,andlong-termequityinvestmentsinsubsidiaries,jointventuresandassociates,theCompanyassessesateachbalancesheetdatewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedtodeterminetheimpairmentloss.Goodwill,intangibleassetswithindefiniteusefullivesandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,regardlessofwhetherthereisanyindicationofimpairment.Whentherecoverableamountislessthanthecarryingamount,animpairmentlossisrecognizedforthedifference.Therecoverableamountisthehigherofanasset'sfairvaluelesscostsofdisposalanditsvalueinuse.Fairvalueisdeterminedbasedonthepriceinthesalesagreementunderfairtransactions;ifthereisnosalesagreementbut
anactivemarketexists,fairvalueisdeterminedbasedontheasset'sbidprice;ifneitherexists,fairvalueisestimatedbasedonthebestavailableinformation.Costsofdisposalincludelegalfees,relatedtaxes,transportationcostsandotherdirectcoststobringtheassettoasaleablecondition.Valueinuseisdeterminedbydiscountingtheestimatedfuturecashflowsexpectedfromtheasset'scontinuinguseandultimatedisposalatanappropriatediscountrate.Impairmentlossesarecalculatedandrecognizedforindividualassets.Ifitisdifficulttoestimatetherecoverableamountofanindividualasset,therecoverableamountisdeterminedforthecash-generatingunittowhichtheassetbelongs.Acash-generatingunitisthesmallestidentifiablegroupofassetsthatgeneratescashinflowsindependently.Forgoodwillpresentedseparatelyinthefinancialstatements,thecarryingamountofgoodwillisallocatedtocash-generatingunitsorgroupsofcash-generatingunitsexpectedtobenefitfromthesynergiesofthebusinesscombinationwhenperformingimpairmenttests.Iftherecoverableamountofacash-generatingunitorgroupofunitsincludingallocatedgoodwillislessthanitscarryingamount,theimpairmentlossisrecognized.Theimpairmentlossisfirstallocatedtoreducethecarryingamountofgoodwillallocatedtotheunitorgroup,thentootherassetsoftheunitorgroupproratabasedontheircarryingamounts.Oncerecognized,impairmentlossesfortheaboveassetsarenotreversedinsubsequentperiods.
21.Long-termDeferredExpensesLong-termdeferredexpensesrefertoexpensesincurredbuttobeamortizedovermorethanoneyearinthecurrentandfutureperiods.TheCompanymeasureslong-termdeferredexpensesatactualcostandamortizesthemevenlyovertheexpectedbenefitperiod.Forlong-termdeferredexpensesthatwillnotbenefitfutureaccountingperiods,theircarryingamountsarefullyrecognizedinprofitorlosswhendetermined.
22.ContractLiabilitiesContractliabilitiesrepresenttheCompany'sobligationtotransfergoodsorservicestocustomersforwhichconsiderationhasbeenreceivedorisreceivable.IfthecustomerhaspaidconsiderationortheCompanyhasobtainedanunconditionalrighttopaymentbeforetransferringgoodsorservices,theCompanypresentstheamountreceivedorreceivableasacontractliabilityattheearlierofwhenpaymentisactuallyreceivedorwhenpaymentisdue.Contractassetsandliabilitiesunderthesamecontractarepresentednet,whilethoseunderdifferentcontractsarenotoffset.
23.EmployeeBenefitsTheCompany'semployeebenefitsmainlyincludeshort-termemployeebenefits,post-employmentbenefitsandterminationbenefits.Short-termbenefitsmainlyincludewages,bonuses,allowancesandsubsidies,employeewelfareexpenses,medicalinsurance,maternityinsurance,workinjuryinsurance,housingprovidentfund,laborunionfundsandemployeeeducationfunds,andnon-monetarybenefits.TheCompanyrecognizesactualshort-termemployeebenefitsasliabilitiesduringtheaccountingperiodswhenemployeesrenderservices,andchargesthemtoprofitorlossorrelevantassetcosts.Non-monetarybenefitsaremeasuredatfairvalue.Post-employmentbenefitsmainlyincludebasicpensioninsuranceandunemploymentinsurance.Post-employmentbenefitplansincludedefinedcontributionplans.Fordefinedcontributionplans,thecorrespondingpayableamountsarechargedtorelevantassetcostsorprofitorlosswhenincurred.
TerminationbenefitsarerecognizedasemployeebenefitliabilitieswhentheCompanycannolongerunilaterallywithdrawtheterminationbenefitsofferedundertheredundancyplanorproposal,orwhentheCompanyrecognizescostsrelatedtorestructuringinvolvingterminationbenefits,whicheverisearlier,andchargedtoprofitorloss.However,terminationbenefitsexpectedtobepaidmorethantwelvemonthsafterthereportingperiodaretreatedasotherlong-termemployeebenefits.Internalretirementplansareaccountedforusingthesameprinciplesasterminationbenefitsabove.TheCompanyrecognizessalariesandsocialinsurancecontributionstobepaidtointernallyretiredemployeesfromthedatetheystoprenderingservicestothenormalretirementdateasprofitorloss(terminationbenefits)whentherecognitioncriteriaforprovisionsaremet.Otherlong-termemployeebenefitsprovidedbytheCompanyareaccountedforasdefinedcontributionplansiftheymeetthecriteria;otherwise,theyareaccountedforasdefinedbenefitplans.
24.ProvisionsProvisionsarerecognizedwhentheCompanyhasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.Provisionsareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettlethepresentobligation,andthecarryingamountsarereviewedateachbalancesheetdate.Ifallorpartoftheexpenditurerequiredtosettleaprovisionisexpectedtobereimbursedbyathirdparty,thereimbursementisrecognizedasaseparateassetwhenitsreceiptisvirtuallycertain,andtheamountrecognizeddoesnotexceedthecarryingamountoftheprovision.
25.Share-basedPayment
(1)AccountingTreatmentforShare-basedPaymentShare-basedpaymentreferstotransactionsinwhichequityinstrumentsaregrantedorliabilitiesbasedonequityinstrumentsareassumedinexchangeforservicesprovidedbyemployeesorotherparties.Share-basedpaymentsareclassifiedintoequity-settledshare-basedpaymentsandcash-settledshare-basedpayments.
①Equity-settledShare-basedPaymentForequity-settledshare-basedpaymentstoobtainemployeeservices,thefairvalueoftheequityinstrumentsgrantedismeasuredatthegrantdate.?Ifthevestingoftheequityinstrumentsisconditionaluponcompletingaspecifiedserviceperiodormeetingperformanceconditions,thefairvalueisrecognizedoverthevestingperiodonastraight-linebasis,basedonthebestestimateofthenumberofinstrumentsexpectedtovest,withcorrespondingincreasesincapitalreserves.?Iftheequityinstrumentsvestimmediatelyupongrant,thefairvalueisrecognizedasanexpenseonthegrantdate,withacorrespondingincreaseincapitalreserves.Ateachbalancesheetdateduringthevestingperiod,theCompanyrevisesitsestimateofthenumberofequityinstrumentsexpectedtovestbasedonthelatestinformation(e.g.,changesinthenumberofemployeeseligibleforvesting).Anyadjustmentsarerecognizedinthecurrentperiod’scostsorexpenses,withcorrespondingadjustmentstocapitalreserves.Forequity-settledshare-basedpaymentstoobtainservicesfromnon-employees:
Ifthefairvalueoftheservicesreceivedcanbereliablymeasured,theexpenseisrecognizedbasedonthefairvalueoftheservicesattheacquisitiondate.Ifthefairvalueoftheservicescannotbereliablymeasuredbutthefairvalueoftheequityinstrumentscan,theexpenseisrecognizedbasedonthefairvalueoftheequityinstrumentsattheserviceacquisitiondate,withacorrespondingincreaseinshareholders’equity.
②Cash-settledShare-basedPaymentCash-settledshare-basedpaymentsaremeasuredatthefairvalueoftheliabilityincurred,determinedbasedonsharesorotherequityinstruments.?Iftheinstrumentsvestimmediatelyupongrant,theliabilityisrecognizedonthegrantdateasanexpense.?Ifvestingisconditionaluponcompletingaserviceperiodormeetingperformanceconditions,theexpenseisrecognizedoverthevestingperiodbasedonthebestestimateofthenumberofinstrumentsexpectedtovest,withacorrespondingincreaseinliabilities.Ateachbalancesheetdateuntilsettlement,theliabilityisremeasuredatfairvalue,withchangesrecognizedinprofitorloss.
(2)AccountingforModificationsorTerminationsofShare-basedPaymentPlans?Ifamodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincrementalfairvalue(i.e.,thedifferencebetweenthefairvaluebeforeandaftermodification)isrecognizedasadditionalservicecost.?Ifamodificationreducesthetotalfairvalueorisotherwiseunfavorabletoemployees,theoriginalaccountingtreatmentcontinuesasifthemodificationneveroccurred,unlesstheequityinstrumentsarepartiallyorfullycanceled.?Ifgrantedequityinstrumentsarecanceledduringthevestingperiod,theremainingunvestedamountis
recognizedimmediatelyinprofitorlossasanacceleratedvestingexpense,withacorrespondingadjustmenttocapitalreserves.Ifemployeesorotherpartiesfailtomeetnon-vestingconditions(despitehavingtheoptiontodoso),thegrantistreatedascanceled.
(3)AccountingforShare-basedPaymentsInvolvingtheCompany’sshareholdersorControllingPartiesForshare-basedpaymenttransactionsbetweentheCompanyanditsshareholdersorcontrollingparties,whereoneparty(thesettlemententity)iswithintheCompany’sconsolidatedscopeandtheother(theservicerecipient)isoutside:
ConsolidatedFinancialStatementsTreatment:
?Ifthesettlemententitysettlesusingitsownequityinstruments,thetransactionistreatedasanequity-settled
share-basedpayment.Otherwise,itistreatedasacash-settledshare-basedpayment.?Ifthesettlemententityisaninvestorintheservicerecipient,itrecognizesalong-termequityinvestmentat
thegrant-datefairvalueoftheequityinstrumentsorliability,withacorrespondingincreaseincapital
reserves(othercapitalreserves)orliabilities.?Iftheservicerecipienthasnosettlementobligationorgrantsitsownequityinstrumentstoemployees,the
transactionistreatedasequity-settled.Iftheservicerecipienthasasettlementobligationandgrants
instrumentsotherthanitsownequity,thetransactionistreatedascash-settled.IndividualFinancialStatementsTreatment:
FortransactionsbetweenentitieswithintheCompany’sconsolidatedscopewheretheservicerecipientandsettlemententitydiffer,eachentityaccountsforthetransactioninitsindividualfinancialstatementsfollowingtheaboveprinciples.
26.OtherFinancialInstrumentsSuchasPreferenceSharesandPerpetualBonds
(1)ClassificationofPerpetualBondsandPreferenceSharesFinancialinstrumentssuchasperpetualbondsandpreferencesharesissuedbytheCompanyshallbeclassifiedasequityinstrumentsonlyiftheymeetallofthefollowingconditions:
①Theinstrumentdoesnotimposeanycontractualobligationtodelivercashorotherfinancialassetstoanotherparty,ortoexchangefinancialassetsorliabilitiesunderpotentiallyunfavorableconditions;
②IfsettlementmayormustoccurusingtheCompany’sownequityinstrumentsinthefuture:
?Fornon-derivativeinstruments,thereisnocontractualobligationtodeliveravariablenumberoftheCompany’sownequityinstrumentsforsettlement;?Forderivativeinstruments,settlementcanonlybemadebyexchangingafixednumberoftheCompany’s
ownequityinstrumentsforafixedamountofcashorotherfinancialassets.FinancialinstrumentsissuedbytheCompanythatdonotmeettheaboveconditionsshallbeclassifiedasfinancialliabilities.ForcompoundfinancialinstrumentsissuedbytheCompany:
?Theliabilitycomponentismeasuredatfairvalueandrecognizedasaliability.?Theresidualamount(totalproceedsreceivedminusthefairvalueoftheliabilitycomponent)isrecognizedas
"otherequityinstruments."?Transactioncostsareallocatedbetweentheliabilityandequitycomponentsinproportiontotheirrespective
sharesofthetotalissuanceproceeds.
(2)AccountingTreatmentforPerpetualBondsandPreferenceSharesForperpetualbondsandpreferencesharesclassifiedasfinancialliabilities:
Interest,dividends,gains/losses,andgains/lossesfromredemptionorrefinancingarerecognizedinprofitorloss,exceptforborrowingcostseligibleforcapitalization(seeNoteV.18"BorrowingCosts").Forperpetualbondsandpreferencesharesclassifiedasequityinstruments:
Issuance(includingrefinancing),repurchase,sale,orcancellationistreatedasachangeinequity,withrelatedtransactioncostsdeductedfromequity.?Distributionstoholdersofequityinstrumentsaretreatedasprofitdistributions.?TheCompanydoesnotrecognizechangesinthefairvalueofequityinstruments.
27.RevenueTheCompanyrecognizesrevenuewhencontroloftherelevantgoodsistransferredtothecustomer,providedallthefollowingconditionsaremet:thecontracthasbeenapprovedbyallpartieswhoarecommittedtofulfillingtheirrespectiveobligations;thecontractclearlyspecifiestherightsandobligationsofeachpartyregardingthegoodsorservicestobetransferred;thecontractcontainsclearpaymenttermsrelatedtothegoodstobetransferred;thecontracthascommercialsubstance,meaningitsperformancewillchangetherisk,timingoramountoftheCompany'sfuturecashflows;andtheconsiderationtowhichtheCompanyisentitledfortransferringgoodstothecustomerisprobableofcollection.Atcontractinception,theCompanyidentifiesthedistinctperformanceobligationsinthecontractandallocatesthetransactionpricetoeachperformanceobligationbasedontherelativestand-alonesellingpricesofthegoodsorservicespromised.Indeterminingthetransactionprice,theCompanyconsiderstheeffectsofvariable
consideration,significantfinancingcomponentsinthecontract,non-cashconsideration,andconsiderationpayabletocustomers.Foreachperformanceobligation,theCompanyrecognizesrevenueovertimebymeasuringprogresstowardcompletesatisfactionofthatperformanceobligationifanyofthefollowingcriteriaaremet:thecustomersimultaneouslyreceivesandconsumesthebenefitsastheCompanyperforms;thecustomercontrolstheassetasitiscreatedorenhanced;ortheassethasnoalternativeuseandtheCompanyhasanenforceablerighttopaymentforperformancecompletedtodate.Progressismeasuredusinganinputmethodappropriatetothenatureofthegoodstransferred.Whenprogresscannotbereasonablymeasured,revenueisrecognizedtotheextentofcostsincurredthatareexpectedtoberecoverableuntilprogresscanbereasonablymeasured.Ifnoneoftheabovecriteriaaremet,revenueisrecognizedatthepointintimewhencontrolofthegoodsistransferredtothecustomer.Inassessingwhethercontrolhastransferred,theCompanyconsidersindicatorsincluding:theCompany'spresentrighttopayment;transferoflegaltitle;physicalpossession;transferofsignificantrisksandrewardsofOwnership;customeracceptance;andotherindicatorsofcontroltransfer.Forcontractswithvariableconsideration,theCompanyestimatestheamountusingeithertheexpectedvalueormostlikelyamountmethod.Thetransactionpriceincludingvariableconsiderationdoesnotexceedtheamountforwhichitishighlyprobablethatcumulativerevenuerecognizedwillnotreversewhenuncertaintyisresolved.Ateachreportingdate,theCompanyreassessesestimatesofvariableconsiderationincludedinthetransactionprice.Considerationpayabletoacustomerisdeductedfromthetransactionpriceunlessitisfordistinctgoodsorservices,withthereductionrecognizedatthelaterofrevenuerecognitionorpayment(orcommitmenttopay)date.TheCompanyassesseswhetheritisaprincipaloragentbasedonwhetheritcontrolsthegoodsorservicesbeforetransfertothecustomer.Asprincipal,revenueisrecognizedatthegrossamountofconsideration;asagent,revenueisrecognizedatthenetamountretainedafterpayingotherparties.TheCompany'sspecificrevenuerecognitionmethodsareasfollows:
Salescontractstypicallycontainasingleperformanceobligationtotransfergoods,satisfiedatapointintime.Domesticsalesrevenueisrecognizedwhen:goodsaredeliveredandacceptedpercontract;paymentisreceivedorcollectabilityisprobable;significantrisks/rewardsaretransferred;andlegaltitlepasses.Exportsalesrevenueisrecognizedwhen:goodsareclearedthroughcustomswithbillofladingobtained;paymentisreceivedorcollectabilityisprobable;significantrisks/rewardsaretransferred;andlegaltitlepasses.Interestincomeisrecognizedbasedontimeandeffectiveinterestrate.
28.ContractCostsContractcostscomprisecoststofulfillandcoststoobtaincontracts.Coststofulfillarecapitalizedasassetsif:
(1)Directlyrelatedtoacontract(labor,materials,overhead,client-reimbursablecosts);
(2)Enhanceresourcesforfutureperformance;and
(3)Probableofrecovery.Incrementalcoststoobtaincontractsarecapitalizedifprobableofrecovery,unlesstheamortizationperiodwouldbeoneyearorless.Capitalizedcontractcostsareamortizedconsistentlywithrevenuerecognition.Impairmentlossesarerecognizedwhencarryingamountexceedsthehigherof:
(1)Expectedremainingconsideration;and
(2)Estimatedcoststocompletetransfer.Reversalscannotexceedthecarryingamountthatwouldhaveexistedwithoutimpairment.
29.GovernmentGrantsGovernmentgrantsrefertomonetaryornon-monetaryassetsobtainedbytheCompanyfromthegovernmentwithoutcompensation,excludingcapitalcontributionsmadebythegovernmentasaninvestorwithcorrespondingOwnershiprights.Governmentgrantsareclassifiedintoasset-relatedgovernmentgrantsandincome-relatedgovernmentgrants.Grantsobtainedfortheacquisitionorconstructionoflong-termassetsthroughothermeansaredefinedasasset-relatedgovernmentgrants;othergovernmentgrantsaredefinedasincome-relatedgovernmentgrants.Ifgovernmentdocumentsdonotexplicitlyspecifythegrantrecipient,thefollowingmethodsareusedtoclassifythegrants:
(1)Forgovernmentdocumentsthatspecifyparticularprojects,classificationisbasedontherelativeproportionofexpendituresformingassetsversusexpensesintheprojectbudget,withthisproportionreviewedateachbalancesheetdateandadjustedifnecessary;
(2)Forgovernmentdocumentsthatonlyprovidegeneraldescriptionsofusagewithoutspecifyingparticularprojects,thegrantsaretreatedasincome-relatedgovernmentgrants.Governmentgrantsintheformofmonetaryassetsaremeasuredattheamountreceivedorreceivable.Governmentgrantsintheformofnon-monetaryassetsaremeasuredatfairvalue;iffairvaluecannotbereliablydetermined,theyaremeasuredatnominalamount.Governmentgrantsmeasuredatnominalamountaredirectlyrecognizedincurrentperiodprofitorloss.TheCompanygenerallyrecognizesandmeasuresgovernmentgrantsbasedontheactualamountreceived.However,atperiod-end,ifthereisconclusiveevidencethattheCompanymeetstherelevantconditionsoffiscalsupportpoliciesandexpectstoreceivefiscalsupportfunds,thegrantsaremeasuredatthereceivableamount.Governmentgrantsmeasuredatreceivableamountmustsimultaneouslymeetthefollowingconditions:
(1)Thereceivablegrantamounthasbeenconfirmedbythecompetentgovernmentauthorityorcanbereasonablyestimatedbasedonofficiallyreleasedfiscalfundmanagementregulations,withnosignificantuncertaintyexpectedintheamount;
(2)Thegrantsarebasedonfiscalsupportprojectsandcorrespondingfiscalfundmanagementregulationsofficiallyreleasedbylocalfinancedepartmentsinaccordancewiththe"GovernmentInformationDisclosureRegulations,"andsuchregulationsmustbeuniversallyapplicable(availabletoanyenterprisemeetingthespecifiedconditions)ratherthanspecificallydesignedforparticularenterprises;
(3)Therelevantgrantapprovaldocumentsclearlyspecifythepaymenttimeline,andthepaymentissupportedbycorrespondingfiscalbudgets,therebyreasonablyensuringreceiptwithinthestipulatedperiod.Asset-relatedgovernmentgrantsarerecognizedasdeferredincomeandsystematicallyamortizedintocurrentperiodprofitorlossovertheusefullifeoftherelevantassets.Income-relatedgovernmentgrantsusedtocompensateforfuturerelatedcosts,expenses,orlossesarerecognizedasdeferredincomeandamortizedintocurrentperiodprofitorlosswhentherelatedcosts,expenses,orlossesarerecognized;thoseusedtocompensateforalreadyincurredrelatedcosts,expenses,orlossesaredirectlyrecognizedincurrentperiodprofitorloss.Governmentgrantscontainingbothasset-relatedandincome-relatedcomponentsareaccountedforseparatelybycomponent;ifthecomponentscannotbereasonablydistinguished,theentiregrantisclassifiedasincome-related.GovernmentgrantsrelatedtotheCompany'sordinaryactivitiesarerecognizedinotherincomeoroffsetagainst
relatedcostsandexpensesbasedontheeconomicsubstanceofthetransaction;grantsunrelatedtoordinaryactivitiesarerecognizedinnon-operatingincomeorexpenses.Whenrecognizedgovernmentgrantsneedtobereturned,anyremainingdeferredincomebalanceisfirstoffset,withanyexcessrecognizedincurrentperiodprofitorloss;inothercases,thereturnisdirectlyrecognizedincurrentperiodprofitorloss.
30.DeferredTaxAssets/DeferredTaxLiabilitiesDeferredtaxassetsordeferredtaxliabilitiesarerecognizedbasedonthedifferencesbetweenthecarryingamountsandtaxbasesofassetsandliabilities(includingitemsnotrecognizedasassetsorliabilitiesbuthavingdeterminabletaxbasesundertaxlaws),calculatedusingtheapplicabletaxratesexpectedtoapplywhentheassetsarerecoveredorliabilitiesaresettled.Deferredtaxassetsarerecognizedonlytotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.Atthebalancesheetdate,ifthereisconclusiveevidenceindicatingsufficienttaxableprofitwilllikelybeavailableinfutureperiodstoutilizedeductibletemporarydifferences,previouslyunrecognizeddeferredtaxassetsarerecognized.Ateachbalancesheetdate,thecarryingamountsofdeferredtaxassetsarereviewed.Ifitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletorealizethebenefitofthedeferredtaxasset,thecarryingamountisreduced.Thereductionisreversedwhenitbecomesprobablethatsufficienttaxableprofitwillbeavailable.TheCompany'scurrenttaxanddeferredtaxarerecognizedasincometaxexpenseorincomeinprofitorloss,exceptforincometaxesarisingfrom:businesscombinations;andtransactionsoreventsrecognizeddirectlyinequity.WhentheCompanyhasalegallyenforceablerighttosettlecurrenttaxassetsandliabilitiesonanetbasisandintendseithertosettleonanetbasisortorealizetheassetandsettletheliabilitysimultaneously,currenttaxassetsandcurrenttaxliabilitiesarepresentednet.
31.Leases
(1)TheCompanyasaLesseeTheCompany'sleasedassetsareprimarilybuildings.Atthecommencementdateoftheleaseterm,theCompanyrecognizesright-of-useassetsandleaseliabilitiesforleasesotherthanshort-termleasesandleasesoflow-valueassets,andrecognizesdepreciationexpensesandinterestexpensesseparatelyduringtheleaseterm.Forshort-termleasesandleasesoflow-valueassets,theCompanyrecognizesleasepaymentsonastraight-linebasisasexpensesintherespectiveperiodsoftheleaseterm.
①Right-of-useAssetsRight-of-useassetsrepresentthelessee'srighttousetheleasedassetduringtheleaseterm.Atthecommencementdateoftheleaseterm,right-of-useassetsareinitiallymeasuredatcost,whichincludes:
Theinitialmeasurementamountoftheleaseliability;Leasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived;Initialdirectcostsincurredbythelessee;Estimatedcoststobeincurredbythelesseefordismantlingandremovingtheleasedasset,restoringthesitewheretheassetislocated,orreturningtheassettotheconditionrequiredbytheleaseterms.
TheCompanydepreciatesright-of-useassetsusingthestraight-linemethodbycategory.ForassetswhereOwnershipisreasonablycertaintobeobtainedattheendoftheleaseterm,depreciationiscalculatedovertheremainingusefullifeoftheleasedasset.ForassetswhereOwnershipcannotbereasonablydetermined,depreciationiscalculatedovertheshorteroftheleasetermortheremainingusefullifeoftheleasedasset.TheCompanydetermineswhetherright-of-useassetsareimpairedandaccountsfortheminaccordancewiththerelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.8—ImpairmentofAssets.
②LeaseLiabilitiesLeaseliabilitiesareinitiallymeasuredatthepresentvalueofleasepaymentsnotyetpaidatthecommencementdateoftheleaseterm.Leasepaymentsinclude:
Fixedpayments(includingin-substancefixedpayments),lessanyleaseincentives;Variableleasepaymentsthatdependonanindexorrate;Amountsexpectedtobepayableunderresidualvalueguaranteesprovidedbythelessee;Theexercisepriceofpurchaseoptions,ifthelesseeisreasonablycertaintoexercisetheoption;Paymentsrequiredtoexerciseterminationoptions,iftheleasetermreflectsthelesseeexercisingtheterminationoption.TheCompanyusestheinterestrateimplicitintheleaseasthediscountrate;ifthiscannotbereasonablydetermined,theCompany'sincrementalborrowingrateisused.Interestexpensesonleaseliabilitiesarecalculatedusingafixedperiodicinterestrateandrecordedinfinancialexpenses.TheperiodicinterestrateisthediscountrateorreviseddiscountrateusedbytheCompany.Variableleasepaymentsnotincludedinthemeasurementofleaseliabilitiesarerecognizedinprofitorlosswhenincurred.WhentheCompany'sassessmentofrenewaloptions,terminationoptions,orpurchaseoptionschanges,theleaseliabilityisremeasuredatthepresentvalueoftherevisedleasepaymentsusingthereviseddiscountrate,withcorrespondingadjustmentstothecarryingamountoftheright-of-useasset.Whenin-substancefixedpayments,expectedpaymentsunderresidualvalueguarantees,orvariableleasepaymentsdependentonanindexorratechange,theleaseliabilityisremeasuredatthepresentvalueoftherevisedleasepaymentsusingtheoriginaldiscountrate,withcorrespondingadjustmentstothecarryingamountoftheright-of-useasset.
③Short-termLeasesandLeasesofLow-valueAssetsForshort-termleases(leaseswithatermof12monthsorlessatcommencementdate)andleasesoflow-valueassets(valuebelowRMB2,000),theCompanyappliesasimplifiedapproachbynotrecognizingright-of-useassetsorleaseliabilities,andinsteadrecognizesleasepaymentsonastraight-linebasisoranothersystematicandrationalbasisasexpensesintherespectiveperiodsoftheleaseterm.
(2)TheCompanyasaLessor
①OperatingLeasesTheCompanyrecognizesleasereceiptsfromoperatingleasesasrentalincomeonastraight-linebasisovertheleaseterm.Variableleasepaymentsnotincludedinleasereceiptsarerecognizedinprofitorlosswhenincurred.
②FinanceLeasesAtthecommencementdateoftheleaseterm,theCompanyrecognizesfinanceleasereceivablesandderecognizestheleasedassets.Financeleasereceivablesareinitiallymeasuredatthenetinvestmentinthelease(thesumoftheunguaranteedresidualvalueandthepresentvalueofleasereceiptsnotyetreceivedatthecommencementdate,discountedusingtheinterestrateimplicitinthelease),withinterestincomerecognizedduringtheleasetermusingafixedperiodicinterestrate.Variableleasepaymentsnotincludedinthemeasurementofthenetinvestment
intheleasearerecognizedinprofitorlosswhenincurred.
32.MethodsforDeterminingMaterialityThresholdsandBasisforSelection
√Applicable□Notapplicable
DisclosureMattersInvolvingMateriality
JudgmentCriteria
| DisclosureMattersInvolvingMaterialityJudgmentCriteria | MaterialityThresholdDeterminationMethodsandSelectionBasis |
| Significantindividuallyassessedreceivableswithspecificbaddebtprovisions | ReceivableswithendingbalanceexceedingRMB1,000,000 |
| Materialconstructioninprogress | ConstructioninprogressprojectseithertransferredtofixedassetsorwithendingbalanceexceedingRMB3,000,000 |
| Significantaccountspayableagedoveroneyearorpastdue | AccountspayablewithendingbalanceexceedingRMB1,000,000 |
| Materialadvancereceiptsagedoveroneyear | AdvancereceiptswithendingbalanceexceedingRMB1,000,000 |
| Materialcontractliabilitiesagedoveroneyear | ContractliabilitieswithendingbalanceexceedingRMB1,000,000 |
| Materialotherpayablesagedoveroneyear | OtherpayableswithendingbalanceexceedingRMB1,000,000 |
| Significantcashreceiptsrelatedtoinvestingactivities | IndividualinvestingactivitieswithcashinflowsexceedingRMB3,000,000 |
| Significantcashpaymentsrelatedtoinvestingactivities | IndividualinvestingactivitieswithcashoutflowsexceedingRMB3,000,000 |
| Materialnon-whollyownedsubsidiaries | Subsidiarieswhosetotalassetsexceed5%ofconsolidatedtotalassets |
33.OtherSignificantAccountingPoliciesandAccountingEstimatesDebtRestructuring
(1)TimingofRecognizingDebtRestructuringGainsandLossesTheCompanymayderecognizetherelevantreceivablesandpayablesandrecognizegainsandlossesrelatedtodebtrestructuringonlyonthedebtrestructuringcompletiondatewhenthederecognitionconditionsforfinancialassetsandfinancialliabilitiesaremet.Thedebtrestructuringcompletiondatereferstothedatewhentheboardofdirectorsandshareholders'meetingresolutionshavebeenapproved,thedebtrestructuringagreementhasbeensignedorthecourtrulinghasbeenissued,therelevantassetshavebeentransferredtothecreditor,thedebthasbeenconvertedintocapital,orthemodifieddebttermshavecommencedexecution.
Fordebtrestructuringthroughassetsettlement,therecognitionpointiswhentherelevantassetshavebeendeliveredandtheOwnershiptransferprocedureshavebeencompleted.Fordebtrestructuringthroughconversionofdebtintoequity,therecognitionpointiswhentheindustrialandcommercialregistrationproceduresortheequityregistrationwiththeregistrationauthorityhavebeencompleted.Fordebtrestructuringthroughmodificationofdebtterms,therecognitionpointiswhenitisdeterminedthatthetermscanbeperformedandexecutionhascommenced.Debtrestructuringnegotiationsthatcommencedduringthereportingperiodbutwerecompletedafterthebalancesheetdatearenottreatedaspost-balance-sheetevents.
(2)AccountingTreatmentbytheCreditorWhentheCompanyactsasacreditor,thedifferencebetweenthefairvalueoftherelinquishedclaimanditscarryingamountisrecognizedinprofitorloss.
(3)AccountingTreatmentbytheDebtorA.Fordebtrestructuringthroughassetsettlement,therelevantassetsandthesettleddebtarederecognizedwhenthederecognitionconditionsaremet.Thedifferencebetweenthecarryingamountofthesettleddebtandthecarryingamountofthetransferredassetsisrecognizedinprofitorloss.B.Fordebtrestructuringthroughconversionofdebtintoequityinstruments,thesettleddebtisderecognizedwhenthederecognitionconditionsaremet.Thedifferencebetweenthecarryingamountofthesettleddebtandtheamountdeterminedbasedonthefairvalueoftheequityinstrumentsisrecognizedinprofitorloss.C.Fordebtrestructuringthroughmodificationofotherterms,therestructureddebtisre-recognizedandremeasured.Thedifferencebetweentheremeasureddebtandtheoriginaldebtisrecognizedinprofitorloss.D.Fordebtrestructuringthroughsettlementwithmultipleassetsoracombinationofmethods,theequityinstrumentsandrestructureddebtarerecognizedandmeasuredinaccordancewiththeAccountingStandardsforBusinessEnterprises.Thedifferencebetweenthecarryingamountofthesettleddebtandthesumofthecarryingamountsofthetransferredassetsandtherecognizedamountsoftheequityinstrumentsandrestructureddebtisrecognizedinprofitorloss.
34.ChangesinMainAccountingPoliciesandEstimates
(1)ChangeofAccountingPolicies
√Applicable□Notapplicable
Unit:RMB
Changestotheaccountingpoliciesandwhy
| Changestotheaccountingpoliciesandwhy | Nameofreportitemsthataresignificantlyaffected | Affectedamount |
| 1.Implementationof"AccountingStandardsforBusinessEnterprisesInterpretationNo.17"InOctober2023,theMinistryofFinanceissued"AccountingStandardsforBusinessEnterprisesInterpretationNo.17"(CaiKuai[2023]No.21),whichstipulatesrelevantcontentsregarding"theclassificationofcurrentliabilitiesandnon-currentliabilities","disclosuresaboutsupplierfinancingarrangements",and"accountingtreatmentforsaleandleasebacktransactions".ThisinterpretationshallbeappliedfromJanuary1,2024.Ourcompanyhasimplementedthe | TheimplementationofInterpretationNo.17hasnothadanymaterialimpactontheCompany'sfinancialstatementsforthereportingperiod. | 0.00 |
provisionsofInterpretationNo.17fromJanuary1,2024.TheimplementationoftherelevantprovisionsofInterpretationNo.17hasnomaterialimpactonourcompany'sfinancialstatementsforthereportingperiod.
| provisionsofInterpretationNo.17fromJanuary1,2024.TheimplementationoftherelevantprovisionsofInterpretationNo.17hasnomaterialimpactonourcompany'sfinancialstatementsforthereportingperiod. | ||
| 2.Implementationof"AccountingStandardsforBusinessEnterprisesInterpretationNo.18"InDecember2024,theMinistryofFinanceissued"AccountingStandardsforBusinessEnterprisesInterpretationNo.18"(CaiKuai[2024]No.24),whichstipulatesthatforwarranty-typequalityassurancethatdoesnotconstituteaseparateperformanceobligation,theaccountingtreatmentshallfollowtherelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.13-Contingencies".Specifically,theestimatedliabilityamountshallberecordedbydebitingaccountssuchas"CostofMainBusiness"and"CostofOtherBusiness"andcreditingthe"EstimatedLiabilities"account.Thisinterpretationshallbeeffectivefromthedateofissuance,withearlyadoptionpermittedforthefiscalyearinwhichitispublished. | Referto"NotestoChangesinAccountingPolicies"fordetails. | Referto"NotestoChangesinAccountingPolicies"fordetails. |
NotestoChangesinAccountingPolicies:
Implementationof"AccountingStandardsforBusinessEnterprisesInterpretationNo.18"hadthefollowingimpactsonthefinancialstatementsasofJanuary1,2024:
Unit:RMB
| Items | ConsolidatedFinancialStatements | ParentCompanyFinancialStatements | ||
| AmountasofDecember31,2023(Before) | AmountasofJanuary1,2024(After) | AmountasofDecember31,2023(Before) | AmountasofJanuary1,2024(After) | |
| Provisions | 60,070,382.24 | 60,070,382.24 | ||
| OtherPayables | 159,023,382.81 | 98,953,000.57 | 151,919,473.64 | 91,849,091.40 |
(continued)
| Items | FY2023 | |||
| ConsolidatedFinancialStatements | ParentCompanyFinancialStatements | |||
| Amountbeforechange | Amountafterchange | Amountbeforechange | Amountafterchange | |
| OperatingCosts | 1,838,755,831.41 | 1,884,289,338.95 | 1,788,129,884.67 | 1,831,801,124.99 |
| SellingExpenses | 99,603,282.16 | 54,069,774.62 | 92,935,731.73 | 49,264,491.41 |
(2)ChangesinAccountingEstimates
□Applicable√Notapplicable
(3)AdjustmentstoFinancialStatementItemsattheBeginningoftheYearoftheFirstImplementationoftheNewAccountingStandardsImplementedsince2024
√Applicable□NotapplicableImplementationof"AccountingStandardsforBusinessEnterprisesInterpretationNo.18"hadthefollowingimpactsonthefinancialstatementsasofJanuary1,2024:
Unit:RMB
Items
| Items | ConsolidatedFinancialStatements | ParentCompanyFinancialStatements | ||
| AmountasofDecember31,2023(Before) | AmountasofJanuary1,2024(After) | AmountasofDecember31,2023(Before) | AmountasofJanuary1,2024(After) | |
| Provisions | 60,070,382.24 | 60,070,382.24 | ||
| OtherPayables | 159,023,382.81 | 98,953,000.57 | 151,919,473.64 | 91,849,091.40 |
(continued)
| Items | FY2023 | |||
| ConsolidatedFinancialStatements | ParentCompanyFinancialStatements | |||
| Amountbeforechange | Amountafterchange | Amountbeforechange | Amountafterchange | |
| OperatingCosts | 1,838,755,831.41 | 1,884,289,338.95 | 1,788,129,884.67 | 1,831,801,124.99 |
| SellingExpenses | 99,603,282.16 | 54,069,774.62 | 92,935,731.73 | 49,264,491.41 |
VI.Taxation
1.MainTaxesandTaxRate
| Categoryoftaxes | Taxrate |
| VAT | OutputVATiscalculatedontaxablerevenueatratesof13%,9%,6%and5%,withVATpayablebeingthebalanceafterdeductinginputVATcreditsallowableinthecurrentperiod. |
| Urbanmaintenanceandconstructiontax | Paymentiscalculatedandmadeinaccordancewithlocaltaxregulationsapplicabletoeachtax-payingunit. |
| Enterpriseincometax | Seethetablebelowfordetails. |
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
| Name | Incometaxrate |
| ChangchaiCompany,Limited | 15% |
ChangchaiWanzhouDieselEngineCo.,Ltd.
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 15% |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 25% |
| ChangzhouHorizonInvestmentCo.,Ltd. | 25% |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 25% |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 15% |
| JiangsuChangchaiMachineryCo.,Ltd. | 25% |
| ChangzhouXingshengRealEstateManagementCo.,Ltd. | 5% |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 15% |
2.TaxPreference
(1)PreferentialCorporateIncomeTaxRatesOnNovember6,2024,theCompanywasre-certifiedasaHigh-TechEnterpriseandcontinuestoenjoyapreferentialcorporateincometaxrateof15%duringthereportingperiod.
(2)WesternDevelopmentPolicyBenefitThecontrollingsubsidiaryChangchaiWanzhouDieselEngineCo.,Ltd.qualifiesfortheWesternDevelopmenttaxincentiveunder:
NoticeonTaxPoliciesfortheImplementationofWesternDevelopmentStrategy(jointlyissuedbytheMinistryofFinance,GAC,andSAT)AnnouncementNo.23[2020]oftheMinistryofFinance(extendingtheWesternDevelopmentcorporateincometaxpolicy)FromJanuary1,2011toDecember31,2030,itissubjecttoareducedtaxrateof15%.
(3)High-TechSubsidiaryOnNovember6,2023,thewholly-ownedsubsidiaryChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd.wasre-certifiedasaHigh-TechEnterpriseandappliesa15%preferentialtaxrateduringthereportingperiod.
(4)SmallandMicroEnterpriseThewholly-ownedsubsidiaryChangzhouXingshengRealEstateManagementCo.,Ltd.qualifiesasaneligiblesmallandlow-profitenterpriseandistaxedat5%duringthereportingperiod.
(5)High-TechCertificationOnDecember12,2022,thesubsidiaryZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.obtainedHigh-TechEnterprisecertificationandbenefitsfroma15%taxrateduringthereportingperiod.
VII.NotestoMajorItemsintheConsolidatedFinancialStatementsoftheCompany
1.MonetaryAssets
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Cashonhand | 84,482.59 | 157,238.05 |
| Bankdeposits | 933,972,475.61 | 963,604,998.68 |
| Othermonetaryassets | 129,643,534.39 | 120,105,730.14 |
| Total | 1,063,700,492.59 | 1,083,867,966.87 |
| Including:Totalamountoffundsdepositedoverseas | ||
| Totalamountoffundswithusagerestrictionsduetomortgage,pledge,freezingorotherreasons | 171,018,607.75 | 112,238,443.41 |
OtherDisclosures:
Asoftheperiod-end,theothermonetaryfundswithincashandcashequivalentsinclude:
Accruedinterestontimedeposits:RMB380,122.48Restrictedfunds:
?Billsguaranteedeposits:RMB126,841,969.27?Bid/tenderbondsandperformancebonds:RMB1,796,516.00?Timedepositsandaccruedinterest(restricted):RMB42,380,122.48
2.TradingFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Financialassetsatfairvaluethroughprofitorloss | 303,667,459.65 | 225,641,429.94 |
| Ofwhich: | ||
| Stocks | 52,598,990.00 | 85,295,021.00 |
| Bankfinancialproducts | 251,068,469.65 | 140,346,408.94 |
| Ofwhich: | ||
| Total | 303,667,459.65 | 225,641,429.94 |
3.NotesReceivable
(1)NotesReceivableListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
Bankacceptancebill
| Bankacceptancebill | 318,814,017.13 | 161,632,567.94 |
| Total | 318,814,017.13 | 161,632,567.94 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| Notesreceivableforwhichbaddebtprovisionseparatelyaccrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Ofwhich: | ||||||||||
| Notesreceivableforwhichbaddebtprovisionaccruedbygroup | 318,814,017.13 | 100.00% | 0.00 | 0.00% | 318,814,017.13 | 161,632,567.94 | 100.00% | 0.00 | 0.00% | 161,632,567.94 |
| Ofwhich: | ||||||||||
| Bankacceptancebills | 318,814,017.13 | 100.00% | 0.00 | 0.00% | 318,814,017.13 | 161,632,567.94 | 100.00% | 0.00 | 0.00% | 161,632,567.94 |
| Total | 318,814,017.13 | —— | 0.00 | 0.00% | 318,814,017.13 | 161,632,567.94 | —— | 0.00 | 0.00% | 161,632,567.94 |
Numberofcategoriesundertheportfolioapproach:1ProvisionforBadDebtsbyPortfolio:theprovisionforbaddebtsiscalculatedbasedonthebankacceptancebillsportfolio
Unit:RMB
| Category | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Bankacceptancebill | 318,814,017.13 | 0.00 | 0.00% |
| Total | 318,814,017.13 | 0.00 | |
Ifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofnotesreceivable:
□Applicable√Notapplicable
(3)NotesReceivablePledgedbytheCompanyatthePeriod-end:None
(4)NotesReceivablewhichHadEndorsedbytheCompanyorhadDiscountedbuthadnotDueontheBalanceSheetDateatthePeriod-end
Unit:RMB
Item
| Item | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 234,736,335.20 | |
| Total | 234,736,335.20 |
(5)NotesTransferredtoAccountsReceivableDuetoNon-performancebyIssuersatPeriod-endAsoftheperiod-end,therewerenonotestransferredtoaccountsreceivableduetonon-performancebyissuers.
4.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Within1year(including1year) | 441,388,545.87 | 313,597,375.85 |
| 1to2years | 6,801,120.23 | 1,873,298.19 |
| 2to3years | 936,696.44 | 4,436,548.28 |
| Over3years | 140,104,147.16 | 144,403,241.11 |
| 3to4years | 4,100,421.27 | 5,278,022.33 |
| 4to5years | 4,863,744.65 | 1,815,570.52 |
| Over5years | 131,139,981.24 | 137,309,648.26 |
| Total | 589,230,509.70 | 464,310,463.43 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||
| Carryingamount | Baddebtprovision | Carrying | Carryingamount | Baddebtprovision | Carryingvalue | |
value
| Amount | Proportion | Amount | Withdrawalproportion | value | Amount | Proportion | Amount | Withdrawalproportion | ||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 26,856,788.69 | 4.56% | 26,856,788.69 | 100.00% | 0.00 | 33,805,182.71 | 7.28% | 33,805,182.71 | 100.00% | 0.00 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 562,373,721.01 | 95.44% | 118,119,480.99 | 21.00% | 444,254,240.02 | 430,505,280.72 | 92.72% | 113,962,120.81 | 26.47% | 316,543,159.91 |
| Ofwhich: | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionaccruedbycreditriskfeaturesgroup | 562,373,721.01 | 95.44% | 118,119,480.99 | 21.00% | 444,254,240.02 | 430,505,280.72 | 92.72% | 113,962,120.81 | 26.47% | 316,543,159.91 |
| Total | 589,230,509.70 | —— | 144,976,269.68 | —— | 444,254,240.02 | 464,310,463.43 | —— | 147,767,303.52 | —— | 316,543,159.91 |
Numberofcategoriesofbaddebtprovisionbyindividualitem:1IndividuallyAssessedBadDebtProvisions:RMB26,856,788.69,includingsignificantimpairmentitemsofRMB25,079,184.81.Thedetailsarepresentedbelow:
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 5,972,101.90 | 5,972,101.90 | 5,972,101.90 | 5,972,101.90 | 100.00% | Difficulttorecover |
| Customer2 | 4,592,679.05 | 4,592,679.05 | 4,592,679.05 | 4,592,679.05 | 100.00% | Difficulttorecover |
Customer3
| Customer3 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 100.00% | Difficulttorecover |
| Customer4 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
| Customer5 | 2,025,880.18 | 2,025,880.18 | 2,025,880.18 | 2,025,880.18 | 100.00% | Difficulttorecover |
| Customer6 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer7 | 1,726,935.65 | 1,726,935.65 | 1,759,397.30 | 1,759,397.30 | 100.00% | Difficulttorecover |
| Customer8 | 0.00 | 0.00 | 1,564,000.07 | 1,564,000.07 | 100.00% | Difficulttorecover |
| Customer9 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer10 | 420,000.00 | 420,000.00 | 410,760.00 | 410,760.00 | 100.00% | Difficulttorecover |
| Total | 23,491,963.09 | 23,491,963.09 | 25,079,184.81 | 25,079,184.81 | -- | -- |
Numberofcategoriesofbaddebtprovisionbygroup:1Withdrawalofbaddebtprovisionbygroup:Provisionforbaddebtsbycreditriskcharacteristicgroup
Unit:RMB
| Name | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 441,388,545.87 | 8,827,770.92 | 2.00% |
| 1to2years | 6,801,120.23 | 340,056.01 | 5.00% |
| 2to3years | 936,696.44 | 140,504.47 | 15.00% |
| 3to4years | 3,558,158.61 | 1,067,447.59 | 30.00% |
| 4to5years | 4,863,744.65 | 2,918,246.79 | 60.00% |
| Over5years | 104,825,455.21 | 104,825,455.21 | 100.00% |
| Total | 562,373,721.01 | 118,119,480.99 | -- |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
Baddebtprovisionseparatelyaccrued
| Baddebtprovisionseparatelyaccrued | 33,805,182.71 | 1,598,787.12 | 7,735,818.14 | 811,363.00 | 26,856,788.69 | |
| Withdrawalofbaddebtprovisionbygroup | 113,962,120.81 | 4,553,431.31 | 396,071.13 | 118,119,480.99 | ||
| Total | 147,767,303.52 | 6,152,218.43 | 7,735,818.14 | 1,207,434.13 | 144,976,269.68 |
OfwhichbaddebtprovisionreversedorrecoveredwithsignificantamountintheReportingPeriod:
Unit:RMB
| Name | Reversedorrecovered | MethodofRecovery | BasisandRationaleforDeterminingtheOriginalProvisionforBadDebtRatios |
| Customer1 | 6,215,662.64 | Recoveredincashthroughmutualmediation | Accountsreceivableagedover5years,fullyprovidedforbaddebts |
| Customer2 | 1,510,915.50 | Recoveredincashthroughmutualmediation | Accountsreceivableagedover5years,fullyprovidedforbaddebts |
| Total | 7,726,578.14 |
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Accountsreceivablewithactualverification | 1,207,434.13 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
| Nameoftheentity | Natureoftheaccountsreceivable | Verifiedamount | Reasonforverification | Verificationproceduresperformed | Arisingfromrelated-partytransactionsornot |
| Customer1 | Accountsreceivableforgoods | 811,363.00 | Theportionunrecoverableaftermutualmediation | MinutesoftheExecutiveOffice | No |
| Total | 811,363.00 |
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccounts | Endingbalanceofbaddebtprovisionofaccounts |
receivableandcontractassets
| receivableandcontractassets | receivableandimpairmentprovisionforcontractassets | ||||
| Customer1 | 137,231,328.98 | 0.00 | 137,231,328.98 | 23.29% | 2,744,626.58 |
| Customer2 | 136,022,798.00 | 0.00 | 136,022,798.00 | 23.08% | 2,869,530.46 |
| Customer3 | 37,488,328.71 | 0.00 | 37,488,328.71 | 6.36% | 749,766.57 |
| Customer4 | 25,787,025.82 | 0.00 | 25,787,025.82 | 4.38% | 515,740.52 |
| Customer5 | 21,455,202.45 | 0.00 | 21,455,202.45 | 3.64% | 429,104.05 |
| Total | 357,984,683.96 | 0.00 | 357,984,683.96 | 60.75% | 7,308,768.18 |
5.AccountsReceivableFinancing
(1)AccountsReceivableFinancingListedbyCategory
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebills | 223,261,002.76 | 195,875,948.92 |
| Total | 223,261,002.76 | 195,875,948.92 |
(2)NotesReceivablePledgedbytheCompanyatthePeriod-end:None
(3)AccountsreceivablefinancingwhichhadendorsedbytheCompanyorhaddiscountedbuthadnotdueattheperiod-end
Unit:RMB
| Category | Amountofrecognitionterminationattheperiod-end | Amountofnotterminatedrecognitionattheperiod-end |
| Bankacceptancebill | 865,680,649.89 | |
| Total | 865,680,649.89 |
(4)ChangesinReceivablesFinancingandFairValueFluctuationsDuringtheReportingPeriod
Unit:RMB
| Item | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Cost | FairValueChanges | Cost | FairValueChanges | Cost | FairValueChanges | |
| NotesReceivable | 195,875,948.92 | 27,385,053.84 | 223,261,002.76 | |||
6.OtherReceivables
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | ||
| Dividendreceivable | 7,165,080.00 | |
| Otherreceivables | 2,682,361.82 | 49,699,753.61 |
| Total | 9,847,441.82 | 49,699,753.61 |
（1）Dividendreceivable
Unit:RMB
| Projects(orInvesteeEntities) | Endingbalance | Beginningbalance |
| JiangsuBank2024InterimDividendAnnouncement | 7,165,080.00 | |
| Total | 7,165,080.00 |
（2）OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Marginandcashpledge | 1,300.00 | 595,723.55 |
| Intercoursefunds | 23,292,830.56 | 69,845,564.95 |
| Pettycashandborrowingsbyemployees | 865,253.08 | 922,370.54 |
| Other | 14,177,743.14 | 13,638,079.94 |
| Total | 38,337,126.78 | 85,001,738.98 |
2)DisclosurebyAging
Unit:RMB
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Within1year(including1year) | 2,514,999.73 | 49,610,086.44 |
| 1to2years | 103,639.66 | 115,776.00 |
| 2to3years | 354,590.84 | 12,802.00 |
| Over3years | 35,363,896.55 | 35,263,074.54 |
3to4years
| 3to4years | 281,647.36 | 30,300.00 |
| 4to5years | 30,300.00 | 321,735.17 |
| Over5years | 35,051,949.19 | 34,911,039.37 |
| Total | 38,337,126.78 | 85,001,738.98 |
3)DisclosurebyWithdrawalMethodsforBadDebts
√Applicable□NotapplicableProvisionforbaddebtsbasedongeneralmodelofexpectedcreditlosses
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2024 | 211,671.73 | 2,715,705.99 | 32,374,607.65 | 35,301,985.37 |
| Balanceof1January2024intheCurrentPeriod | ||||
| --TransfertoSecondstage | -2,072.79 | 2,072.79 | ||
| --TransfertoThirdstage | -2,698,996.89 | 2,698,996.89 | ||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | -159,302.35 | 25,607.09 | 487,474.85 | 353,779.59 |
| ReversaloftheCurrentPeriod | ||||
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | 1,000.00 | 1,000.00 | ||
| Otherchanges | ||||
| Balanceof31December2024 | 50,296.59 | 44,388.98 | 35,560,079.39 | 35,654,764.96 |
Thebasisforthedivisionofeachstageandthewithdrawalproportionofbaddebtprovision:None
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
Category
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Others | |||
| Baddebtprovisionseparatelyaccrued | 5,282,163.35 | 333,706.20 | 5,615,869.55 | |||
| Withdrawalofbaddebtprovisionbygroup | 30,019,822.02 | 20,073.39 | 1,000.00 | 30,038,895.41 | ||
| Total | 35,301,985.37 | 353,779.59 | 1,000.00 | 35,654,764.96 | ||
5）Write-offofOtherReceivablesDuringtheReportingPeriod
Unit:RMB
| Item | Write-offAmount |
| Write-offofOtherReceivables | 1,000.00 |
6)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
| ChangzhouCompressorFactory | Intercoursefunds | 2,940,000.00 | Over5years | 7.67% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Intercoursefunds | 2,853,188.02 | Over5years | 7.44% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Intercoursefunds | 1,626,483.25 | Over5years | 4.24% | 1,626,483.25 |
ChangchaiGroupSettlementCenter
| ChangchaiGroupSettlementCenter | Intercoursefunds | 1,128,676.16 | Over5years | 2.94% | 1,128,676.16 |
| ChuangyeDieselEngineRepairFactory | Intercoursefunds | 1,000,000.00 | Over5years | 2.61% | 1,000,000.00 |
| Total | 9,548,347.43 | 24.90% | 9,548,347.43 |
7.Prepayments
(1)PrepaymentListedbyAgingAnalysis
Unit:RMB
| Aging | Endingbalance | Beginningbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 11,874,660.61 | 93.32% | 11,196,498.47 | 90.78% |
| 1to2years | 355,228.45 | 2.79% | 840,617.01 | 6.82% |
| 2to3years | 489,219.64 | 3.84% | 289,345.37 | 2.35% |
| Over3years | 6,850.00 | 0.05% | 6,850.00 | 0.05% |
| Total | 12,725,958.70 | -- | 12,333,310.85 | -- |
(2)Top5PrepaymentinEndingBalanceCollectedaccordingtothePrepaymentTarget
Unit:RMB
| Nameoftheentity | Endingbalance | ProportionofTotalPrepaymentBalanceatPeriod-End(%) |
| Supplier1 | 3,570,770.82 | 28.06% |
| Supplier2 | 1,962,319.51 | 15.42% |
| Supplier3 | 1,860,501.67 | 14.62% |
| Supplier4 | 686,364.94 | 5.39% |
| Supplier5 | 653,239.74 | 5.13% |
| Total | 8,733,196.68 | 68.62% |
8.InventoriesWhethertheCompanyneedstocomplywiththedisclosurerequirementsfortherealestateindustryNo
(1)CategoryofInventory
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | Carryingamount | Depreciationreservesofinventoriesorimpairmentprovisionforcontractperformancecosts | Carryingvalue | |
| Rawmaterials | 210,549,278.77 | 9,266,290.45 | 201,282,988.32 | 199,751,010.25 | 7,529,878.82 | 192,221,131.43 |
| Materialsprocessedoncommission | 13,598,683.13 | 0.00 | 13,598,683.13 | 12,422,107.02 | 0.00 | 12,422,107.02 |
| Goodsinprocess | 79,357,978.34 | 4,128,144.66 | 75,229,833.68 | 90,202,210.05 | 6,761,129.14 | 83,441,080.91 |
| Finishedgoods | 559,878,239.54 | 32,330,091.16 | 527,548,148.38 | 527,412,149.21 | 27,690,142.42 | 499,722,006.79 |
| Lowpricedandeasilywornarticles | 1,542,344.91 | 0.00 | 1,542,344.91 | 1,413,859.53 | 0.00 | 1,413,859.53 |
| Total | 864,926,524.69 | 45,724,526.27 | 819,201,998.42 | 831,201,336.06 | 41,981,150.38 | 789,220,185.68 |
(2)FallingPriceReservesofInventoryandImpairmentReservesforContractPerformanceCosts
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | ||
| Withdrawal | Others | Transferred-backorcharged-off | Others | |||
| Rawmaterials | 7,529,878.82 | 1,979,765.82 | 243,354.19 | 9,266,290.45 | ||
| Goodsinprocess | 6,761,129.14 | 331,582.56 | 2,964,567.04 | 4,128,144.66 | ||
| Finishedgoods | 27,690,142.42 | 12,097,868.82 | 7,457,920.08 | 32,330,091.16 | ||
| Total | 41,981,150.38 | 14,409,217.20 | 10,665,841.31 | 45,724,526.27 | ||
(3)ThereWasNoCapitalizedBorrowingExpenseintheEndingBalanceofInventories.
9.Non-currentassetsduewithinoneyear
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance | Note |
| Investmentsindebtobligationsduewithinoneyear | 0.00 | 40,773,509.75 | Three-yeartimedepositsmaturingwithinoneyear |
| Total | 0.00 | 40,773,509.75 |
(1)InvestmentsinDebtObligationsDuewithinOneYear
√Applicable□Notapplicable1）InvestmentsinDebtObligationsDuewithinOneYear
Unit:RMB
| Groupname | Endingbalance | Beginningbalance | ||||
| Carryingamount | Fallingpricereserves | Carryingvalue | Carryingamount | Fallingpricereserves | Carryingvalue | |
| Three-yearfixedtermdeposit | 0.00 | 0.00 | 40,773,509.75 | 40,773,509.75 | ||
| Total | 0.00 | 0.00 | 40,773,509.75 | 40,773,509.75 | ||
10.OtherCurrentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| TheVATtaxcredits | 51,823,671.46 | 19,940,871.92 |
| Prepaidcorporateincometax | 2,705,816.46 | 908,233.33 |
| Prepaidexpense | 75,533.75 | 61,399.59 |
| Total | 54,605,021.67 | 20,910,504.84 |
11.OtherEquityInstrumentInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | Gainsrecordedinothercomprehensiveincomeinthecurrent | Lossesrecordedinothercomprehensiveincomeinthecurrent | Accumulativegainsrecordedinothercomprehensiveincomein | Accumulativelossesrecordedinothercomprehensiveincomein | Dividendincomerecognizedincurrentyear | Reasonforassigningtomeasureinfairvalueofwhich |
period
| period | period | thecurrentperiod | thecurrentperiod | changesincludedothercomprehensiveincome | ||||
| Non-tradingequityinvestment | 941,120,058.72 | 969,488,025.67 | 73,242,000.00 | 101,609,966.95 | 756,550,058.72 | 18,163,080.00 | Non-tradingequityinvestment | |
| Total | 941,120,058.72 | 969,488,025.67 | 73,242,000.00 | 101,609,966.95 | 756,550,058.72 | 18,163,080.00 |
Non-tradingequityinstrumentinvestmentdisclosedbycategory
Unit:RMB
| Item | Dividendincomerecognized | Accumulativegains | Accumulativelosses | Amountofothercomprehensivetransferredtoretainedearnings | Reasonforassigningtomeasurebyfairvalueofwhichchangesbeincludedtoothercomprehensiveincome | Reasonforothercomprehensiveincometransferredtoretainedearnings |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | 248,637,058.72 | Non-tradingequityinvestment | ||||
| FotonMotorCo.,Ltd. | 320,911,000.00 | Non-tradingequityinvestment | ||||
| BankofJiangsuCo.,Ltd. | 18,163,080.00 | 187,002,000.00 | Non-tradingequityinvestment |
12.Long-termEquityInvestment
Unit:RMB
| Investees | Beginningbalance(carrying | Beginningbalanceofdepreciatio | Increase/decrease | Endingbalance(carrying | Endingbalanceofdepreciatio | |||||||
| Additionalinvestment | Reducedinvestment | Gainorlossrecognized | Adjustmentofothercomp | Changesinotherequity | Cashbonusorprofitannou | Withdrawalofdepreciatio | Other | |||||
value)
| value) | nreserves | undertheequitymethod | rehensiveincome | ncedtoissue | nreserves | value) | nreserves | ||||
| I.Jointventure | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| II.Associatedenterprises | |||||||||||
| BeijingTsinghuaIndustrialInvestmentManagementCo.,Ltd. | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |||||||
| Subtotal | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |||||||
| Total | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |||||||
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
13.OtherNon-currentFinancialAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| FinancialAssetsatFairValueThroughProfitorLoss(Including:EquityInstrumentInvestments) | 377,869,217.49 | 412,914,576.80 |
| Total | 377,869,217.49 | 412,914,576.80 |
14.InvestmentProperty
(1)InvestmentPropertyAdoptingtheCostMeasurementMode
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Housesandbuildings | Total |
| I.Originalcarryingvalue | ||
| 1.Beginningbalance | 93,077,479.52 | 93,077,479.52 |
| 2.Increasedamountoftheperiod | ||
| (1)Outsourcing | ||
| (2)Transferfrominventories/fixedassets/constructioninprogress | ||
| (3)Enterprisecombinationincrease | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 93,077,479.52 | 93,077,479.52 |
| II.Accumulativedepreciationandaccumulativeamortization | ||
| 1.Beginningbalance | 53,239,921.41 | 53,239,921.41 |
| 2.Increasedamountoftheperiod | 2,096,713.56 | 2,096,713.56 |
| (1)Withdrawaloramortization | 2,096,713.56 | 2,096,713.56 |
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | 55,336,634.97 | 55,336,634.97 |
| III.Depreciationreserves | ||
| 1.Beginningbalance | ||
| 2.Increasedamountoftheperiod | ||
| (1)Withdrawal | ||
| 3.Decreasedamountoftheperiod | ||
| (1)Disposal | ||
| (2)Othertransfer | ||
| 4.Endingbalance | ||
| IV.Carryingvalue |
1.Endingcarryingvalue
| 1.Endingcarryingvalue | 37,740,844.55 | 37,740,844.55 |
| 2.Beginningcarryingvalue | 39,837,558.11 | 39,837,558.11 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
15.FixedAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Fixedassets | 615,414,505.40 | 675,596,920.95 |
| Disposaloffixedassets | ||
| Total | 615,414,505.40 | 675,596,920.95 |
(1)ListofFixedAssets
Unit:RMB
| Item | Housesandbuildings | Machineryequipment | Transportationequipment | Otherequipment | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 683,973,527.80 | 1,117,118,836.89 | 16,527,248.93 | 61,820,174.73 | 1,879,439,788.35 |
| 2.Increasedamountoftheperiod | 6,505,869.57 | 17,670,002.80 | 166,991.14 | 1,586,115.85 | 25,928,979.36 |
| (1)Purchase | 1,212,045.63 | 5,007,147.44 | 5,309.73 | 340,386.83 | 6,564,889.63 |
| (2)Transferfromconstructioninprogress | 5,293,823.94 | 12,662,855.36 | 161,681.41 | 1,245,729.02 | 19,364,089.73 |
| (3)Enterprisecombinationincrease |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | 47,976,401.54 | 14,818,301.47 | 652,187.97 | 1,178,213.20 | 64,625,104.18 |
| (1)Disposalorscrap | 1,962,362.62 | 14,467,299.97 | 652,187.97 | 1,000,734.48 | 18,082,585.04 |
| (2)Transferfromconstructioninprogress | 169,416.42 | 177,478.72 | 346,895.14 | ||
| (3)Others(Note1) | 46,014,038.92 | 181,585.08 | 46,195,624.00 | ||
| 4.Endingbalance | 642,502,995.83 | 1,119,970,538.22 | 16,042,052.10 | 62,228,077.38 | 1,840,743,663.53 |
| II.AccumulatedDepreciation | |||||
| 1.Beginningbalance | 331,778,938.87 | 822,480,700.96 | 10,101,717.80 | 39,184,289.07 | 1,203,545,646.70 |
| 2.Increasedamountoftheperiod | 19,921,195.02 | 55,334,455.58 | 1,325,317.19 | 5,646,380.17 | 82,227,347.96 |
| (1)Withdraw | 19,921,195.02 | 55,334,455.58 | 1,325,317.19 | 5,646,380.17 | 82,227,347.96 |
| 3.Decreasedamountoftheperiod | 44,564,770.15 | 14,360,225.31 | 652,187.97 | 1,163,873.80 | 60,741,057.23 |
| (1)Disposalorscrap | 1,475,019.08 | 14,009,223.81 | 652,187.97 | 986,395.08 | 17,122,825.94 |
| (2)Transferfromconstructioninprogress | 169,416.42 | 177,478.72 | 346,895.14 | ||
| (3)Others(Note1) | 43,089,751.07 | 181,585.08 | 43,271,336.15 | ||
| 4.Endingbalance | 307,135,363.74 | 863,454,931.23 | 10,774,847.02 | 43,666,795.44 | 1,225,031,937.43 |
| III.ImpairmentProvision | |||||
| 1.Beginningbalance | 297,220.70 | 297,220.70 |
Note1:The"OtherDisposals"offixedassetsrelatetobuildingsandequipmentdemolishedfortheurbanredevelopmentprojectattheChangchaiCo.,Ltd.SanjingBranchsite(seeNoteVII.20fordetails).
(2)ListofTemporarilyIdleFixedAssets
Unit:RMB
Item
| Item | Originalcarryingvalue | Accumulativedepreciation | Depreciationreserves | Carryingvalue | Note |
| Housesandbuildings | 59,157,112.16 | 52,780,229.96 | 6,376,882.20 | Refertonote2 | |
| Transportationequipment | 15,654,026.86 | 14,125,584.98 | 1,528,441.88 | ||
| Otherequipment | 55,205.86 | 40,841.58 | 14,364.28 | ||
| Machineryequipment | 309,407.50 | 12,186.80 | 297,220.70 |
Note2:Duetopublicinterestrequirementsforurbanredevelopment,theXinbeiDistrictPeople'sGovernmentofChangzhouhasdecidedtoimplementtheexpropriationofbuildingswithinthePhaseIscopeoftheSanjing
| 2.Increasedamountoftheperiod | 20,122.51 | 20,122.51 | |||
| (1)Withdraw | 20,122.51 | 20,122.51 | |||
| 3.Decreasedamountoftheperiod | 20,122.51 | 20,122.51 | |||
| (1)Disposalorscrap | 20,122.51 | 20,122.51 | |||
| 4.Endingbalance | 297,220.70 | 297,220.70 | |||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 335,367,632.09 | 256,218,386.29 | 5,267,205.08 | 18,561,281.94 | 615,414,505.40 |
| 2.Beginningcarryingvalue | 352,194,588.93 | 294,340,915.23 | 6,425,531.13 | 22,635,885.66 | 675,596,920.95 |
SubdistrictFoundryPlantandsurroundingareaurbanrenewalproject.TheexpropriationareacoverstheCompany'sformerfoundryproductionbase,whereportionsofthefixedassetswereinanidlestate.
16.ConstructioninProgress
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Constructioninprogress | 3,376,866.69 | 4,253,721.78 |
| Engineeringmaterials | 21,900.40 | |
| Total | 3,376,866.69 | 4,275,622.18 |
(1)ListofConstructioninProgress
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| TechnologyCenterInnovationCapabilityConstructionProject | 898,041.60 | 898,041.60 | 981,532.17 | 981,532.17 | ||
| EquipmentInstallationPendingProject | 2,478,825.09 | 2,478,825.09 | 2,866,348.90 | 2,866,348.90 | ||
| MiscellaneousEngineeringWorks | 405,840.71 | 405,840.71 | ||||
| Total | 3,376,866.69 | 3,376,866.69 | 4,253,721.78 | 4,253,721.78 | ||
(2)SignificantChangesinConstruction-in-ProgressProjectsDuringtheCurrentPeriod
Unit:RMB
| Item | Beginningbalance | Newadditions | Transferstofixedassets | Transferstointangibleassets | Endingbalance | SourcesofFunds |
EquipmentInstallationWorks
| EquipmentInstallationWorks | 2,866,348.90 | 18,055,852.79 | 17,344,261.50 | 1,099,115.10 | 2,478,825.09 | EquityFunds |
| Total | 2,866,348.90 | 18,055,852.79 | 17,344,261.50 | 1,099,115.10 | 2,478,825.09 | -- |
（3）ImpairmentTestofConstructioninProgress
□Applicable?Notapplicable
（4）EngineeringMaterials
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Impairmentprovision | Carryingvalue | Carryingamount | Impairmentprovision | Carryingvalue | |
| Engineeringmaterials | 0.00 | 0.00 | 21,900.40 | 21,900.40 | ||
| Total | 0.00 | 0.00 | 21,900.40 | 21,900.40 | ||
17.IntangibleAssets
(1)ListofIntangibleAssets
Unit:RMB
| Item | Landuseright | Software | Licensefee | Trademarkuseright | Total |
| I.Originalcarryingvalue | |||||
| 1.Beginningbalance | 205,187,775.71 | 20,419,604.15 | 5,538,000.00 | 1,650,973.47 | 232,796,353.33 |
| 2.Increasedamountoftheperiod | 1,154,048.73 | 1,154,048.73 | |||
| (1)Purchase | 54,933.63 | 54,933.63 | |||
| (2)InternalR&D | |||||
| (3)Businesscombinationincrease | |||||
| (4)Transferfromconstructioninprogress | 1,099,115.10 | 1,099,115.10 |
3.Decreasedamountoftheperiod
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 205,187,775.71 | 21,573,652.88 | 5,538,000.00 | 1,650,973.47 | 233,950,402.06 |
| II.Accumulatedamortization | |||||
| 1.Beginningbalance | 63,473,422.16 | 16,541,171.87 | 3,800,133.10 | 523,440.52 | 84,338,167.65 |
| 2.Increasedamountoftheperiod | 4,181,823.36 | 1,910,163.91 | 548,799.96 | 165,661.32 | 6,806,448.55 |
| (1)Withdrawal | 4,181,823.36 | 1,910,163.91 | 548,799.96 | 165,661.32 | 6,806,448.55 |
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | 67,655,245.52 | 18,451,335.78 | 4,348,933.06 | 689,101.84 | 91,144,616.20 |
| III.Depreciationreserves | |||||
| 1.Beginningbalance | |||||
| 2.Increasedamountoftheperiod | |||||
| (1)Withdrawal | |||||
| 3.Decreasedamountoftheperiod | |||||
| (1)Disposal | |||||
| 4.Endingbalance | |||||
| IV.Carryingvalue | |||||
| 1.Endingcarryingvalue | 137,532,530.19 | 3,122,317.10 | 1,189,066.94 | 961,871.63 | 142,805,785.86 |
| 2.Beginningcarryingvalue | 141,714,353.55 | 3,878,432.28 | 1,737,866.90 | 1,127,532.95 | 148,458,185.68 |
18.Long-termPrepaidExpenses
Unit:RMB
| Item | Beginningbalance | Increase | Amortizedamount | Decrease | Endingbalance |
| Trademarkrenewalfee | 268,208.12 | 41,732.67 | 33,556.84 | 276,383.95 | |
| Externalpowerline | 2,754,000.00 | 319,370.91 | 46,455.98 | 2,388,173.11 |
accessproject
| accessproject | |||||
| Processingreservedfloorpavingandlightinginstallationworks | 5,205,750.54 | 5,205,750.54 | |||
| Total | 8,227,958.66 | 41,732.67 | 352,927.75 | 5,252,206.52 | 2,664,557.06 |
19.DeferredIncomeTaxAssets/DeferredIncomeTaxLiabilities
(1)DeferredIncomeTaxAssetsthatHadnotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Baddebtprovision | 12,526,884.12 | 1,949,082.99 | 9,431,907.00 | 1,518,995.79 |
| Provisions | 61,700.00 | 9,255.00 | ||
| Advancetaxpaidonpre-collecteddemolitioncompensation | 30,000,000.00 | 4,500,000.00 | ||
| Total | 42,588,584.12 | 6,458,337.99 | 9,431,907.00 | 1,518,995.79 |
(2)DeferredIncomeTaxLiabilitiesHadNotBeenOff-set
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| Assetsevaluationappreciationforbusinesscombinationnotunderthesamecontrol | 5,308,792.40 | 796,318.85 | 5,489,891.06 | 823,483.65 |
| Changesoffairvalueofotherequityinstrumentinvestments | 1,008,689,955.98 | 153,653,533.48 | 1,102,931,935.12 | 171,019,971.87 |
| Total | 1,013,998,748.38 | 154,449,852.33 | 1,108,421,826.18 | 171,843,455.52 |
(3)ListofUnrecognizedDeferredIncomeTaxAssets
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Deductibletemporarydifferences | 214,123,380.22 | 215,915,752.97 |
| Deductibletaxlosses | 94,504,005.70 | 137,917,562.93 |
| Total | 308,627,385.92 | 353,833,315.90 |
(4)DeductibleLossesofUnrecognizedDeferredIncomeTaxAssetswillDueintheFollowingYears
Unit:RMB
| Years | Endingbalance |
| 2029 | 4,463,227.36 |
| 2030 | 1,489,106.18 |
| 2031 | 1,470,853.20 |
| 2032 | 27,506,664.76 |
| 2033 | 50,340,092.01 |
| 2034 | 9,234,062.19 |
| Total | 94,504,005.70 |
20.OtherNon-currentAssets
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Prepaymentsfortheacquisitionoflong-termassets | 1,448,809.45 | 1,448,809.45 | 2,578,776.77 | 2,578,776.77 | ||
| Assetsheldfordisposal | 2,924,287.85 | 2,924,287.85 | ||||
| Total | 4,373,097.30 | 4,373,097.30 | 2,578,776.77 | 2,578,776.77 | ||
OtherNotes:
TheassetsheldfordisposalrelatetobuildingsandequipmentdemolishedundertheoldtownredevelopmentprojectatChangchaiCo.,Ltd.'sChangzhouSanjingBranch(seeNoteXVI.2).ThecompanyhascurrentlyreceivedthefirstcompensationpaymentofRMB30,000,000.00,whichisexpectedtocovertheassociateddemolitionlosses.Sincetherelatedexpropriationprocessisanticipatedtotakemorethanoneyeartocomplete,thecompanyhasreclassifiedthecarryingvalueofthedemolishedfixedassetstoothernon-currentassets.
21.AssetswithRestrictedOwnershiporRightofUse
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance | ||||||
| Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | Carryingamount | Carryingvalue | Typeofrestriction | Statusofrestriction | |
| Monetaryassets | 171,018,607.75 | 171,018,607.75 | Occupiedascashdeposit | Bankacceptancebillguaranteedeposits、Letterofguaranteedeposits、Performancebonddeposits、Termdepositsandaccruedinterest | 76,238,443.41 | 76,238,443.41 | Occupiedascashdeposit | Bankacceptancebillguaranteedeposits、Letterofguaranteedeposits、Performancebonddeposits、Termdepositsandaccruedinterest |
| Notesreceivable--outstandingdiscountednotes | 70,878,200.00 | 70,878,200.00 | Paymentobligationsforundiscountedbutdiscountedbills | DiscountedbytheCompanyattheperiod-endandnotdueonthebalancesheetdate | ||||
| Notesreceivable--outstandingtransferrednotes | 163,858,135.20 | 163,858,135.20 | Paymentobligationsforundiscountedbuttransferredbills | EndorsedbytheCompanyattheperiod-endandnotdueonthebalancesheetdate | 55,979,832.64 | 55,979,832.64 | Unduetransferredbillpaymentobligations | Endorsedbillsnotyetmaturedatthebalancesheetdate |
| FixedAssets- | 1,332,812 | 1,332,812 | Mortgage | Mortgagedfor | ||||
Housesandbuildings
| Housesandbuildings | .48 | .48 | d | issuingbankacceptancebills | |||
| IntangibleAssets-LandUseRights | 847,162.28 | 847,162.28 | Mortgaged | Mortgagedforissuingbankacceptancebills | |||
| FixedAssets-Machineryequipment | 23,728,733.18 | 23,728,733.18 | Mortgaged | Mortgagedforissuingbankacceptancebills | |||
| Total | 405,754,942.95 | 405,754,942.95 | 158,126,983.99 | 158,126,983.99 |
22.Short-termBorrowings
(1)CategoryofShort-termBorrowings
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebillswithfinancingnature | 94,471,787.41 | |
| Total | 94,471,787.41 |
23.NotesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Bankacceptancebill | 491,643,629.88 | 528,139,582.33 |
| Total | 491,643,629.88 | 528,139,582.33 |
Attheendofthecurrentperiod,therewerenonotespayabledueandnotpaid.
24.AccountsPayable
(1)ListofAccountsPayable
Unit:RMB
Item
| Item | Endingbalance | Beginningbalance |
| Paymentforgoods | 690,733,575.75 | 641,484,184.05 |
| Total | 690,733,575.75 | 641,484,184.05 |
(2)SignificantAccountsPayableAgingoverOneYearorOverdue
Unit:RMB
| Item | Endingbalance | Unpaid/Un-carry-overreason |
| Payablesforgoodsandservices | 76,052,261.47 | Notyetsettled |
| Payablesforconstructionworksandequipment | 6,736,282.92 | Notyetsettled |
| Total | 82,788,544.39 |
25.OtherPayables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestpayable | 0.00 | 0.00 |
| Dividendspayable | 3,891,433.83 | 3,891,433.83 |
| Otherpayables | 113,845,527.69 | 95,061,566.74 |
| Total | 117,736,961.52 | 98,953,000.57 |
(1)DividendsPayable
Unit:RMB
Thereasonfornon-paymentforoveroneyear:Notgottenbyshareholdersyet.
(2)OtherPayables
1)OtherPayablesListedbyNatureofAccount
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Margin&cashpledged | 2,595,993.50 | 2,671,042.33 |
Item
| Item | Endingbalance | Beginningbalance |
| Ordinarysharedividends | 3,243,179.97 | 3,243,179.97 |
| Dividendsfornon-controllingshareholders | 648,253.86 | 648,253.86 |
| Total | 3,891,433.83 | 3,891,433.83 |
Intercompanybalances
| Intercompanybalances | 14,989,385.23 | 11,107,514.80 |
| Personaladvancesandreceivables | 647,001.19 | 398,761.04 |
| Salesdiscountsandproductwarranties | 78,652,203.86 | 65,026,250.12 |
| Other | 16,960,943.91 | 15,857,998.45 |
| Total | 113,845,527.69 | 95,061,566.74 |
2)SignificantOtherPayablesAgingoverOneYearThesignificantotherpayableswithagingoveroneyearatperiod-endmainlyconsistofunsettledtemporaryreceiptsandoutstandingpayables.
26.Advancesfromcustomers
(1)ListofAdvancesfromcustomers
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Advancerentalreceipts | 183,376.84 | 647,441.22 |
| Advancereceiptsforlandcompensation | 30,000,000.00 | 1,000,000.00 |
| Total | 30,183,376.84 | 1,647,441.22 |
(2)Significantchangesinthecarryingamountduringthecurrentperiodandthereasonsthereof
Unit:RMB
| Item | Amountofchange | Reasonforchange |
| Advancereceiptsforlandcompensation | 29,000,000.00 | Duringthecurrentperiod,theCompanyreceiveddemolitioncompensationpaymentsfortheoldtownrenovationprojectattheChangzhouSanjingBranchsiteofChangchaiCo.,Ltd. |
27.Contractliabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Contractliabilities | 31,640,879.59 | 33,352,877.66 |
| Total | 31,640,879.59 | 33,352,877.66 |
28.Employeebenefitspayable
(1)Listofemployeebenefitspayable
Unit:RMB
Item
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| I.Short-termsalary | 47,738,883.57 | 295,899,743.45 | 294,846,372.04 | 48,792,254.98 |
| II.Post-employmentbenefit-definedcontributionplans | 33,075,703.07 | 33,075,703.07 | ||
| III.Terminationbenefits | ||||
| IV.Currentportionofotherbenefits | ||||
| Total | 47,738,883.57 | 328,975,446.52 | 327,922,075.11 | 48,792,254.98 |
(2)ListofShort-termSalary
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Salary,bonus,allowance,subsidy | 40,196,939.41 | 244,255,226.90 | 243,761,424.24 | 40,690,742.07 |
| 2.Employeewelfare | 1,592.74 | 8,747,217.24 | 8,747,217.24 | 1,592.74 |
| 3.Socialinsurance | 19,369,371.09 | 19,369,371.09 | ||
| Ofwhich:Medicalinsurancepremiums | 16,089,051.78 | 16,089,051.78 | ||
| Work-relatedinjuryinsurance | 1,751,915.10 | 1,751,915.10 | ||
| Maternityinsurance | 1,528,404.21 | 1,528,404.21 | ||
| 4.Housingfund | 19,303,926.23 | 19,303,926.23 | ||
| 5.Laborunionbudgetandemployeeeducationbudget | 7,540,351.42 | 4,224,001.99 | 3,664,433.24 | 8,099,920.17 |
| 6.Short-termabsencewithsalary |
7.Short-termprofitsharingscheme
| 7.Short-termprofitsharingscheme | ||||
| Total | 47,738,883.57 | 295,899,743.45 | 294,846,372.04 | 48,792,254.98 |
(3)ListofDefinedContributionPlans
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| 1.Basicpensionbenefits | 32,068,582.81 | 32,068,582.81 | ||
| 2.Unemploymentinsurance | 1,007,120.26 | 1,007,120.26 | ||
| 3.Enterpriseannuities | ||||
| Total | 33,075,703.07 | 33,075,703.07 |
29.TaxesPayable
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| VAT | 239,602.32 | 189,045.23 |
| Corporateincometax | 611,800.65 | 1,686,812.32 |
| Personalincometax | 210,290.78 | 312,930.09 |
| Urbanmaintenanceandconstructiontax | 19,983.59 | 881,885.27 |
| Propertytax | 1,715,080.20 | 1,678,590.95 |
| Landusetax | 943,261.64 | 943,261.64 |
| Stampduty | 437,390.87 | 349,554.08 |
| EducationSurcharge | 14,240.95 | 36,841.50 |
| Comprehensivefees | 120,291.58 | |
| Environmentalprotectiontax | 22,673.70 | 31,957.08 |
| Total | 4,214,324.70 | 6,231,169.74 |
30.OtherCurrentLiabilities
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Saleservicefee | 485,055.17 | 393,790.53 |
Transportationstoragefee
| Transportationstoragefee | 353,692.31 | 830,881.27 |
| Electriccharge | 2,530,866.25 | 1,457,500.39 |
| Taxtobetransferred | 3,818,328.30 | 2,830,696.17 |
| Estimatedsharevalueaddedtax | 745,360.75 | 2,230,084.52 |
| Obligationtopaybillstransferredbeforematurity | 163,858,135.20 | 55,979,832.64 |
| Otherwithholdingexpenses | 3,273,239.95 | 3,347,180.44 |
| Total | 175,064,677.93 | 67,069,965.96 |
31.Provisions
Unit:RMB
| Item | Endingbalance | Beginningbalance | Reasonforformation |
| Productwarranty | 73,002,860.52 | 60,070,382.24 | Estimatedafter-salesexpenses |
| Total | 73,002,860.52 | 60,070,382.24 |
32.DeferredIncome
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance | Reasonforformation |
| Governmentgrants | 32,795,896.48 | 3,409,729.46 | 29,386,167.02 | Governmentappropriation | |
| Total | 32,795,896.48 | 3,409,729.46 | 29,386,167.02 | -- |
Note:
Liabilityitemsinvolvinggovernmentgrants
Unit:RMB
| Item | Beginningbalance | Amountofnewsubsidy | AmountrecordedintootherincomeintheReportingPeriod | Endingbalance | Relatedtoassets/relatedincome |
| Nationalmajorprojectspecialallocations-Flexibleprocessingproductionlineforcylindersofdieselengines | 10,001,835.00 | 1,519,266.00 | 8,482,569.00 | Relatedtoassets | |
| Removecompensation | 17,181,816.74 | 665,973.62 | 16,515,843.12 | Relatedtoassets |
ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse
| ResearchanddevelopmentandindustrializationallocationsofnationalIII/IVstandardhigh-poweredefficientdieselengineforagriculturaluse | 5,612,244.74 | 1,224,489.84 | 4,387,754.90 | Relatedtoassets | |
| Total | 32,795,896.48 | 3,409,729.46 | 29,386,167.02 | —— |
33.ShareCapital
Unit:RMB
| Beginningbalance | Increase/decrease(+/-) | Endingbalance | |||||
| Newsharesissued | Bonusshares | Bonusissuefromprofit | Other | Subtotal | |||
| Thesumofshares | 705,692,507.00 | 705,692,507.00 | |||||
34.CapitalReserves
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Capitalpremium(premiumonstock) | 620,338,243.21 | 620,338,243.21 | ||
| Othercapitalreserves | 20,171,432.63 | 20,171,432.63 | ||
| Total | 640,509,675.84 | 640,509,675.84 |
35.OtherComprehensiveIncome
Unit:RMB
| Item | Beginni | ReportingPeriod | Endin |
ngbalance
| ngbalance | IncomebeforetaxationintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinprofitorlossintheCurrentPeriod | Less:RecordedinothercomprehensiveincomeinpriorperiodandtransferredinretainedearningsintheCurrentPeriod | Less:Incometaxexpense | AttributabletotheCompanyastheparentaftertax | Attributabletonon-controllinginterestsaftertax | gbalance | |
| I.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 667,180,321.82 | -28,367,966.95 | -4,255,195.04 | -24,112,771.91 | 643,067,549.91 | |||
| Changesinfairvalueofotherequityinstrumentinvestment | 667,180,321.82 | -28,367,966.95 | -4,255,195.04 | -24,112,771.91 | 643,067,549.91 | |||
| Totalofothercomprehensiveincome | 667,180,321.82 | -28,367,966.95 | -4,255,195.04 | -24,112,771.91 | 643,067,549.91 |
Othernotes,includingtheadjustmentoftheeffectivegain/lossoncashflowhedgestotheinitialrecognizedamount:None
36.SpecificReserve
Unit:RMB
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Safetyproductioncost | 19,432,089.52 | 9,958,016.52 | 7,431,039.69 | 21,959,066.35 |
| Total | 19,432,089.52 | 9,958,016.52 | 7,431,039.69 | 21,959,066.35 |
37.SurplusReserves
Unit:RMB
Item
| Item | Beginningbalance | Increase | Decrease | Endingbalance |
| Statutorysurplusreserves | 350,538,734.44 | 4,131,072.93 | 354,669,807.37 | |
| Discretionalsurplusreserves | 13,156,857.90 | 13,156,857.90 | ||
| Total | 363,695,592.34 | 4,131,072.93 | 367,826,665.27 |
Surplusreserveexplanation:PursuanttotheCompanyLawofthePeople'sRepublicofChinaandthecompany'sarticlesofassociation,theCompanyappropriates10%ofitsnetprofitasstatutorysurplusreserve.
38.RetainedEarnings
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Beginningbalanceofretainedearningsbeforeadjustments | 1,002,436,724.71 | 915,495,909.35 |
| Totalretainedearningsatthebeginningoftheadjustmentperiod(“+”meansup,“-”meansdown) | ||
| Beginningbalanceofretainedearningsafteradjustments | 1,002,436,724.71 | 915,495,909.35 |
| Add:NetprofitattributabletoshareholdersoftheCompanyastheparent | 18,489,896.00 | 108,495,607.05 |
| Less:Withdrawalofstatutorysurplusreserves | 4,131,072.93 | 14,497,866.62 |
| Withdrawalofdiscretionalsurplusreserves | ||
| Withdrawalofgeneralreserve | ||
| Dividendofordinarysharespayable | 33,167,547.83 | 7,056,925.07 |
| Dividendsofordinarysharestransferredassharecapital | ||
| Endingretainedearnings | 983,627,999.95 | 1,002,436,724.71 |
Adjustmentstoopeningretainedearningsdetails:
(1)RetrospectiveadjustmentduetotheAccountingStandardsforBusinessEnterprisesandrelatednewregulations:RMB0.00impactonopeningretainedearnings.
(2)Changeinaccountingpolicies:RMB0.00impactonopeningretainedearnings.
(3)Correctionofmaterialaccountingerrors:RMB0.00impactonopeningretainedearnings.
(4)Changesinconsolidationscopeduetotransactionsundercommoncontrol:RMB0.00impactonopening
retainedearnings.
(5)Otheradjustments,netimpactonopeningretainedearnings:RMB0.00.
39.OperatingRevenueandCostofSales
Unit:RMB
Item
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 2,371,931,691.41 | 2,084,092,192.19 | 2,110,376,920.43 | 1,858,767,201.32 |
| Otheroperations | 43,937,336.91 | 35,208,273.88 | 45,321,867.06 | 25,522,137.63 |
| Total | 2,415,869,028.32 | 2,119,300,466.07 | 2,155,698,787.49 | 1,884,289,338.95 |
Whethertheloweroftheauditednetprofitbeforeandafterdeductionofnon-recurringgainsandlossesisnegative
□Yes√NoRevenue-relatedinformation:
Unit:RMB
| ContractClassification | Segmentrevenue1 | Total | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Bybusinesstype | ||||
| Ofwhich: | ||||
| DieselEngines-Single-Cylinder | 901,718,157.69 | 774,338,404.49 | 901,718,157.69 | 774,338,404.49 |
| DieselEngines-Multi-Cylinder | 1,184,603,268.88 | 1,059,649,606.20 | 1,184,603,268.88 | 1,059,649,606.20 |
| OtherProducts | 176,108,095.29 | 154,164,550.29 | 176,108,095.29 | 154,164,550.29 |
| Parts&Accessories | 109,502,169.55 | 95,939,631.21 | 109,502,169.55 | 95,939,631.21 |
| Bygeographicalsegment | ||||
| Ofwhich: | ||||
| DomesticSales | 2,015,685,665.82 | 1,740,075,174.50 | 2,015,685,665.82 | 1,740,075,174.50 |
| Exportsales | 356,246,025.59 | 344,017,017.69 | 356,246,025.59 | 344,017,017.69 |
| Total | 2,371,931,691.41 | 2,084,092,192.19 | 2,371,931,691.41 | 2,084,092,192.19 |
TherevenueamountcorrespondingtoperformanceobligationsundercontractssignedasoftheendofthereportingperiodthathavenotyetbeenfulfilledorpartiallyfulfilledisRMB0.00.
40.TaxesandSurtaxes
Unit:RMB
Item
| Item | ReportingPeriod | Sameperiodoflastyear |
| Urbanmaintenanceandconstructiontax | 1,722,364.51 | 1,195,680.92 |
| Educationsurcharge | 1,230,223.15 | 854,061.84 |
| Propertytax | 7,045,665.54 | 7,027,411.47 |
| Landusetax | 4,013,319.52 | 4,209,985.02 |
| Vehicleandvesselusetax | 2,803.52 | 2,803.52 |
| Stampduty | 2,043,184.49 | 1,546,467.17 |
| Environmenttax | 124,057.13 | 204,264.65 |
| Other | 16,723.66 | |
| Total | 16,181,617.86 | 15,057,398.25 |
41.AdministrativeExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 61,402,397.77 | 51,674,294.80 |
| Officeexpenses | 10,322,299.02 | 10,787,236.38 |
| Depreciationandamortization | 16,092,889.89 | 24,825,227.36 |
| Safetyexpenses | 5,823,550.54 | 4,782,552.29 |
| Repaircharge | 196,736.76 | 741,750.01 |
| Inventoryscrapandinventoryloss(profit) | -149,986.94 | 6,291,477.71 |
| Consultingfees | 4,933,152.81 | 2,380,158.31 |
| Insurancepremiums | 1,852,716.96 | 2,170,875.39 |
| Utilitiesexpenses | 2,438,996.99 | 2,492,684.37 |
| Other | 12,553,588.10 | 17,835,077.37 |
| Total | 115,466,341.90 | 123,981,333.99 |
42.SellingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Employeebenefits | 45,964,550.56 | 42,024,752.56 |
| Officeexpenses | 11,079,843.97 | 10,212,761.75 |
| Advertisingandexhibitionexpenses | 1,494,362.92 | 773,352.98 |
| Depreciationandamortization | 716,473.37 | 665,547.75 |
Other
| Other | 1,362,023.61 | 393,359.58 |
| Total | 60,617,254.43 | 54,069,774.62 |
43.DevelopmentCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Directinputexpense | 46,708,069.23 | 51,504,815.69 |
| Employeebenefits | 24,323,024.76 | 24,744,156.04 |
| Depreciationandamortization | 5,756,990.16 | 4,895,983.48 |
| Entrusteddevelopmentcharges | 704,000.00 | 684,195.77 |
| Other | 5,909,393.45 | 8,509,953.35 |
| Total | 83,401,477.60 | 90,339,104.33 |
44.FinanceCosts
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Interestexpense | 341,136.21 | 1,825,195.98 |
| Less:Interestincome | 17,940,638.39 | 9,008,657.82 |
| Netforeignexchangegainsorlosses | -6,063,845.94 | -4,234,188.82 |
| Other | 240,309.43 | 132,973.74 |
| Total | -23,423,038.69 | -11,284,676.92 |
45.OtherIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| VATadditionaldeduction | 16,017,274.94 | 294,256.13 | |
| Withholdingindividualincometaxhandlingfeerefund | 50,685.36 | 74,552.51 | |
| Governmentgrantsrecognizeddirectlyincurrentperiodprofitorloss | 4,143,565.38 | 3,009,573.87 | 3,477,338.38 |
| Governmentgrantsrelatedtodeferredincome | 3,409,729.46 | 3,409,729.46 |
Thedetailsofgovernmentsubsidiesareasfollows:
Unit:RMB
Items
| Items | ReportingPeriod | Asset-relatedgrants/Income-relatedgrants |
| NationalMajorSpecialFundAllocation-FlexibleMachiningProductionLineforDieselEngineCylinderBlocks | 1,519,266.00 | Asset-relatedgrants |
| DemolitionCompensation-HehaiRoadLand | 267,333.49 | Asset-relatedgrants |
| DemolitionCompensation-HehaiRoadBaseMainWorkshop | 398,640.13 | Asset-relatedgrants |
| GrantforR&DandIndustrializationofHigh-EfficiencyAgriculturalDieselEnginesMeetingNationalPhaseIII/IVEmissionStandards | 1,224,489.84 | Asset-relatedgrants |
| ChangzhouFinancialDevelopmentSpecialFund(forEnterpriseShareholdingReformandListing) | 2,000,000.00 | Income-relatedgrants |
| Provincial-LevelCommerceDevelopmentSpecialFund | 525,300.00 | Income-relatedgrants |
| ChangzhouInnovationDevelopmentSpecialFund(2023SupportforEnterpriseR&DInvestment) | 150,000.00 | Income-relatedgrants |
| TalentSpecialFund | 42,000.00 | Income-relatedgrants |
| 2024High-TechZoneIndustrialandInformationTechnologySpecialFund | 30,000.00 | Income-relatedgrants |
| MunicipalScienceandTechnologyInnovationFundProject | 56,973.38 | Income-relatedgrants |
| FinancialSubsidy | 12,000.00 | Income-relatedgrants |
| "FourAbove"UnitsStatisticalQualityAssessmentReward | 800.00 | Income-relatedgrants |
| High-QualityDevelopmentExcellenceAward | 30,000.00 | Income-relatedgrants |
| CoordinationTechnologyAward | 20,000.00 | Income-relatedgrants |
| SubsidyandBonusforEmployingDisabledPersons(Meeting/ExceedingQuota) | 31,920.00 | Income-relatedgrants |
| VATDeductionforEmployingPoverty-AlleviationWorkforce | 22,100.00 | Income-relatedgrants |
| 2023PartyFeeReimbursementfor"TwoNew"andRetiringPartyOrganizations | 16,945.00 | Income-relatedgrants |
| LongchengTalentPlan-ForeignTalentSpecialSubsidy | 100,000.00 | Income-relatedgrants |
| EnterpriseTechnology-DrivenInnovationAward | 51,000.00 | Income-relatedgrants |
| 2023InnovationEntityCultivationBonus | 100,000.00 | Income-relatedgrants |
| PatentAward | 300.00 | Income-relatedgrants |
| 2023FirstBatchPatentApplicationandUtilizationAward | 8,000.00 | Income-relatedgrants |
Items
| Items | ReportingPeriod | Asset-relatedgrants/Income-relatedgrants |
| IntellectualPropertyStandardizationCertificationReward | 50,000.00 | Income-relatedgrants |
| 2024IndustrialHigh-QualityDevelopmentSpecialFund | 200,000.00 | Income-relatedgrants |
| 2023FirstBatchDistrict-LevelManufacturingHigh-QualityDevelopmentSpecialFund | 30,000.00 | Income-relatedgrants |
| EmploymentStabilizationSubsidy | 666,227.00 | Income-relatedgrants |
| Total | 7,553,294.84 | —— |
46.GainonChangesinFairValue
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear |
| Held-for-tradingfinancialassets | -30,892,837.58 | 10,401,521.88 |
| Othernon-currentfinancialassets | -35,045,359.31 | 39,414,576.80 |
| Total | -65,938,196.89 | 49,816,098.68 |
47.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Long-termequityinvestmentincomeaccountedbyequitymethod | ||
| Investmentincomefromdisposaloflong-termequityinvestment | ||
| Investmentincomefromholdingoftradingfinancialassets | 855,760.00 | 343,730.00 |
| Investmentincomefromdisposaloftradingfinancialassets | 6,671,015.98 | 3,820,476.37 |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 18,163,080.00 | 11,482,380.00 |
| Incomefromre-measurementofresidualstockrightsatfairvalueafterlosingcontrolpower | ||
| Interestincomefromholdingofinvestmentindebtobligations | 499,990.25 | 1,463,921.82 |
| Interestincomefromholdingofinvestmentinotherdebtobligations |
Investmentincomefromdisposalofinvestmentinotherdebtobligations
| Investmentincomefromdisposalofinvestmentinotherdebtobligations | ||
| Debtrestructuringgains | 267,434.70 | |
| Securitieslendingandborrowingbusinessincome | 95,937.38 | 28,498.48 |
| Investmentincomefromwealthmanagementproducts | 1,026,622.56 | 7,673,218.19 |
| Accountsreceivablefinancing-Discountinterestonbankacceptancebills | -3,313,989.60 | -5,709,875.91 |
| Total | 24,265,851.27 | 19,102,348.95 |
48.CreditImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Baddebtlossofaccountsreceivable | 1,583,599.71 | 2,961,043.75 |
| Baddebtlossofotherreceivables | -353,779.59 | -3,133,215.40 |
| Total | 1,229,820.12 | -172,171.65 |
49.AssetImpairmentLoss
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Lossoninventoryvaluationandcontractperformancecost | -14,383,249.32 | -27,893,895.75 |
| Impairmentlossonproperty,plantandequipment | -20,122.51 | |
| Total | -14,403,371.83 | -27,893,895.75 |
50.AssetDisposalIncome
Unit:RMB
| Sources | ReportingPeriod | Sameperiodoflastyear | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Disposalincomeoffixedassetsandintangibleassets | 304,377.71 | 105,702,551.01 | 304,377.71 |
51.Non-operatingIncome
Unit:RMB
Item
| Item | ReportingPeriod | Sameperiodoflastyear | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Incomefromdisposaloffixedassets | 222,436.80 | ||
| Incomefrompenalty | 97,216.00 | 10,840.00 | 97,216.00 |
| Accountsnotrequiredtobepaid | 1,556,125.20 | 263,791.00 | 1,556,125.20 |
| Other | 1,185,262.22 | 430,925.85 | 1,185,262.22 |
| Total | 2,838,603.42 | 927,993.65 | 2,838,603.42 |
52.Non-operatingExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Lossondisposaloffixedassets | 418,860.88 | 206,219.59 | 418,860.88 |
| Donation | 250,000.00 | 150,000.00 | 250,000.00 |
| Other | 217,646.81 | 826,317.95 | 217,646.81 |
| Total | 886,507.69 | 1,182,537.54 | 886,507.69 |
53.IncomeTaxExpense
(1)ListofIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Currentincometaxexpense | 8,816,925.87 | 4,541,041.54 |
| Deferredincometaxexpense | -18,077,750.35 | 33,095,616.49 |
| Total | -9,260,824.48 | 37,636,658.03 |
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
| Item | ReportingPeriod |
Profitbeforetaxation
| Profitbeforetaxation | 15,356,740.40 |
| Currentincometaxexpenseaccountedatstatutory/applicabletaxrate | 2,303,511.06 |
| Influenceofapplyingdifferenttaxratesbysubsidiaries | -4,209,583.50 |
| Influenceofincometaxbeforeadjustment | 80,224.15 |
| Influenceofnon-taxableincome | -2,938,402.00 |
| Impactofnon-deductiblecosts,expensesandlosses | 1,307,320.76 |
| Impactofutilizingpreviouslyunrecognizeddeductibletaxlosses | -9,319,890.92 |
| Impactofunrecognizeddeductibletemporarydifferencesandtaxlossesincurrentperiod | 9,568,669.34 |
| Impactofsuper-deductionincentivesonincometax | -6,052,673.37 |
| Incometaxexpense | -9,260,824.48 |
54.OtherComprehensiveIncomeSeeNoteVII35fordetails.
55.CashFlowStatement
(1)CashRelatedtoOperatingActivitiesCashGeneratedfromOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Subsidyandappropriation | 4,121,465.38 | 3,084,694.38 |
| Otherintercoursesincash | 6,834,709.31 | 2,744,200.31 |
| Interestincome | 17,560,515.91 | 9,008,657.82 |
| Recoveryoftimedepositsatmaturity | 36,000,000.00 | 24,000,000.00 |
| Other | 3,343,648.68 | 1,245,299.28 |
| Total | 67,860,339.28 | 40,082,851.79 |
CashUsedinOtherOperatingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Sellingandadministrativeexpensepaidincash | 95,660,891.03 | 114,918,107.53 |
| Timedepositswithdrawn | 42,000,000.00 | 36,000,000.00 |
| Othertransactions | 851,981.36 | 1,580,265.70 |
Other
| Other | 479,361.32 | 1,632,848.89 |
| Total | 138,992,233.71 | 154,131,222.12 |
(2)CashRelatedtoInvestingActivitiesCashGeneratedfromOtherInvestingActivities
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Cashpaidforacquisitionofminorityinterestsinsubsidiaries | 7,170,000.00 | |
| Discountingofbankacceptancebillswithlowcreditratings | 110,000,000.00 | |
| Total | 117,170,000.00 |
Changesinliabilitiesarisingfromfinancingactivities
□Applicable√Notapplicable
56.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
| Supplementalinformation | ReportingPeriod | Sameperiodoflastyear |
| 1.Reconciliationofnetprofittonetcashflowsgeneratedfromoperatingactivities | ||
| Netprofit | 24,617,564.88 | 114,698,355.56 |
| Add:Provisionforimpairmentofassets | 14,403,371.83 | 27,893,895.75 |
| Creditimpairmentloss | -1,229,820.12 | 172,171.65 |
| Depreciationoffixedassets,ofinvestmentproperties | 84,324,061.52 | 88,980,118.41 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 6,806,448.55 | 7,081,433.87 |
| Amortizationoflong-termdeferredexpenses | 352,927.75 | 349,871.11 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainsby“-”) | -304,377.71 | -105,702,551.01 |
| Lossesonthescrappingoffixedassets(gainsby“-”) | 418,860.88 | -16,217.21 |
| Lossesonthechangesinfairvalue(gainsby“-”) | 65,938,196.89 | -49,816,098.68 |
| Financialexpenses(gainsby“-”) | -5,722,709.73 | -644,213.13 |
| Investmentlosses(gainsby“-”) | -27,579,840.87 | -24,812,224.86 |
| Decreaseindeferredincometaxassets(increaseby“-”) | -4,939,342.20 | 24,701,580.14 |
Increaseindeferredincometaxliabilities(decreaseby“-”)
| Increaseindeferredincometaxliabilities(decreaseby“-”) | -13,138,408.15 | 8,394,036.35 |
| Decreaseininventory(increaseby“-”) | -44,365,062.06 | -245,117,199.69 |
| Decreaseinaccountsreceivablefromoperatingactivities(increaseby“-”) | -515,169,470.57 | 27,662,484.38 |
| Increaseinpayablesfromoperatingactivities(decreaseby“-”) | 264,499,562.26 | 263,364,384.71 |
| Other | -3,204,931.85 | |
| Netcashflowsgeneratedfromoperatingactivities | -154,292,968.70 | 137,189,827.35 |
| 2.Investingandfinancingactivitiesthatdonotinvolvingcashreceiptsandpayment: | ||
| Debttransferredascapital | ||
| Convertiblecorporatebondduewithinoneyear | ||
| Fixedassetsfromfinancinglease | ||
| 3.Netincreaseincashandcashequivalents | ||
| Endingbalanceofcash | 892,681,884.84 | 971,629,523.46 |
| Less:Beginningbalanceofcash | 971,629,523.46 | 810,350,966.05 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Beginningbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -78,947,638.62 | 161,278,557.41 |
(2)CashFlowsfromSignificantInvestingActivitiesReceivedorPaid
Unit:RMB
| Item | ReportingPeriod |
| Cashreceivedfromsignificantinvestingactivities | |
| Including:CashReceivedfromRedemptionofWealthManagementProducts,StructuredDeposits,andDebtInvestments | 1,118,117,547.48 |
| Cashpaidforsignificantinvestingactivities | |
| Including:Cashpaidforpurchaseofwealthmanagementproductsandstructureddeposits | 1,179,550,000.00 |
(3)CashandCashEquivalents
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| I.Cash | 892,681,884.84 | 971,629,523.46 |
| Including:Cashonhand | 84,482.59 | 157,238.05 |
| Bankdepositondemand | 891,972,475.61 | 963,604,998.68 |
Othermonetaryassetsondemand
| Othermonetaryassetsondemand | 624,926.64 | 7,867,286.73 |
| Accountsdepositedinthecentralbankavailableforpayment | ||
| Depositsinotherbanks | ||
| Accountsofinterbank | ||
| II.Cashequivalents | ||
| Ofwhich:Bondinvestmentexpiredwithinthreemonths | ||
| III.Endingbalanceofcashandcashequivalents | 892,681,884.84 | 971,629,523.46 |
| Ofwhich:CashandcashequivalentswithrestrictioninusefortheCompanyastheparentorsubsidiariesoftheGroup |
(4)Disclosureofchangesinfinancing-relatedliabilitiesfromopeningtoclosingbalancesbycategory
Unit:RMB
| Item | Openingbalance | Increase | Decrease | Closingbalance | ||
| Cashchanges | Non-cashchanges | Cashchanges | Non-cashchanges | |||
| Short-termborrowings | 94,412,090.20 | 59,697.21 | 94,471,787.41 | |||
| Otherpayables-dividendspayable | 3,891,433.83 | 3,891,433.83 | ||||
| Total | 3,891,433.83 | 94,412,090.20 | 59,697.21 | 98,363,221.24 | ||
57.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
| Item | Endingforeigncurrencybalance | Exchangerate | EndingbalanceconvertedtoRMB |
| Monetaryassets | 224,364,347.14 | ||
| Ofwhich:USD | 31,162,617.52 | 7.1884 | 224,009,359.79 |
HKD
| HKD | 383,339.11 | 0.92604 | 354,987.35 |
| Accountsreceivable | 110,124,478.86 | ||
| Ofwhich:USD | 15,197,105.67 | 7.1884 | 109,242,874.42 |
| EUR | 117,145.84 | 7.5257 | 881,604.44 |
| Accountspayable | 2,175.21 | ||
| Ofwhich:USD | 302.60 | 7.1884 | 2,175.21 |
(2)NotestoOverseasEntitiesIncluding:forSignificantOverseaEntities,MainOperatingPlace,RecordingCurrencyandSelectionBasisShallBeDisclosed;ifthereAreChangesinRecordingCurrency,RelevantReasonsShallBeDisclosed.
□Applicable√Notapplicable
58.Lease
(1)TheCompanyWasLessor:
OperatingleaseswiththeCompanyaslessor
√Applicable?Notapplicable
Unit:RMB
| Item | Rentalincome | Ofwhich:incomerelatedtovariableleasepaymentsnotincludedinleasereceipts |
| Leaseincome | 2,441,811.39 | |
| Total | 2,441,811.39 |
FinanceleaseswiththeCompanyaslessor?Applicable√NotapplicableUndiscountedleasereceiptsforeachofthenextfiveyears?Applicable√NotapplicableReconciliationofundiscountedleasereceiptstonetinvestmentinleases:NotapplicableVIII.ResearchandDevelopmentExpenditure
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Directinput | 46,708,069.23 | 51,504,815.69 |
| Employeeremuneration | 24,323,024.76 | 24,744,156.04 |
| Depreciationandamortization | 5,756,990.16 | 4,895,983.48 |
| Outsourcingdevelopmentfees | 704,000.00 | 684,195.77 |
| Others | 5,909,393.45 | 8,509,953.35 |
| Total | 83,401,477.60 | 90,339,104.33 |
Ofwhich:Expensedresearchanddevelopmentexpenditure
| Ofwhich:Expensedresearchanddevelopmentexpenditure | 83,401,477.60 | 90,339,104.33 |
| Capitalizedresearchanddevelopmentexpenditure |
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)Subsidiaries
Unit:RMB
| Name | Registeredcapital | Mainoperatingplace | Registrationplace | Natureofbusiness | Holdingpercentage(%) | Wayofgaining | |
| Directly | Indirectly | ||||||
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 85,000,000.00 | Chongqing | Chongqing | Industry | 60.00% | Set-up | |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | 55,063,000.00 | Changzhou | Changzhou | Industry | 99.00% | 1.00% | Set-up |
| ChangzhouHorizonInvestmentCo.,Ltd. | 40,000,000.00 | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | 10,000,000.00 | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 37,250,000.00 | Changzhou | Changzhou | Industry | 100.00% | Combinationnotunderthesamecontrol | |
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | Changzhou | Changzhou | Industry | 100.00% | Set-up | |
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | Changzhou | Changzhou | Service | 100.00% | Set-up | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 2,000,000.00 | Zhenjiang | Zhenjiang | Industry | 49.00% | Combinationnotunderthesamecontrol | |
Note:TheCompanyholdsa49%equityinterestinZhenjiangSiyang,makingitthelargestshareholder.Withothershareholdersbeingrelativelydispersed,andgiventhattheCompanyappoints4outofthe7boardmembers
ofZhenjiangSiyang(includingtheChairman),theCompanyisthedefactocontrollingpartyofZhenjiangSiyang,meetingtheconsolidationcriteria.
(2)SignificantNon-wholly-ownedSubsidiary
Unit:RMB
Name
| Name | Shareholdingproportionofnon-controllinginterests | Theprofitorlossattributabletothenon-controllinginterests | Declaringdividendsdistributedtonon-controllinginterests | Balanceofnon-controllinginterestsattheperiod-end |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40.00% | 271,622.56 | 20,447,252.38 | |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 51.00% | 5,856,046.32 | 57,449,838.65 |
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. | 44,920,697.17 | 21,532,357.74 | 66,453,054.91 | 15,334,923.96 | 15,334,923.96 | 41,179,375.84 | 22,351,977.78 | 63,531,353.62 | 13,584,154.77 | 13,584,154.77 | ||
ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd.
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 104,849,374.35 | 22,695,139.48 | 127,544,513.83 | 16,537,400.72 | 61,700.00 | 16,599,100.72 | 94,747,199.90 | 24,396,092.80 | 119,143,292.70 | 20,295,436.96 | 20,295,436.96 |
Unit:RMB
| Name | ReportingPeriod | Sameperiodoflastyear | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| ChangchaiWanzhouDieselEngineCo.,Ltd. | 40,738,284.52 | 679,056.41 | 679,056.41 | 2,764,335.63 | 43,364,246.66 | 261,794.64 | 261,794.64 | -8,451,013.52 |
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 69,479,046.40 | 11,482,443.77 | 11,482,443.77 | 3,116,694.39 | 66,935,156.33 | 10,423,984.02 | 10,423,984.02 | 1,349,693.24 |
2.EquityintheStructuredEntityExcludedintheScopeofConsolidatedFinancialStatementsNotestothestructuredentityexcludedinthescopeofconsolidatedfinancialstatements:
In2017,theCompanysetupChangzhouXietongPrivateEquityFund(LimitedPartnership)togetherwithSynergeticInnovationFundManagementCo.,Ltd.throughjointinvestment.On18October2018and3December2020,newpartnerswererespectivelyadded.PartnershipSharestransferwasmadeon29December2022and10October2023.InlinewiththerevisedPartnershipAgreement,thegeneralpartnerisSynergeticInnovationFundManagementCo.,Ltd.,andthelimitedpartnersareChangchaiCompany,Limited,ChangzhouZhongyouPetroleumSalesCo.,Ltd.,ChangzhouFuelCo.,Ltd.,TongYinzhu,TongYinxin,AnhuiHaiyunzhou
EquityInvestmentPartnershipEnterprise(Limited),ShenzhenJiaxinOneVentureCapitalPartnership(limitedpartnership),ZhongWendeandQingdaoYinjiahuiIndustrialInvestmentPartnershipEnterprise(LimitedPartnership).InaccordancewiththePartnershipAgreement,thelimitedpartnerdoesnotexecutethepartnershipaffairs.Thus,theCompanydoesnotcontrolChangzhouXietongPrivateEquityFund(LimitedPartnership)anddidnotincludeitintothescopeofconsolidatedfinancialstatements.X.GovernmentGrants
1.GovernmentGrantsRecognizedattheEndoftheReportingPeriodattheAmountReceivable
□Applicable?NotapplicableReasonsforfailingtoreceivegovernmentgrantsintheestimatedamountattheestimatedpointintime
□Applicable?Notapplicable
2.LiabilityItemsInvolvingGovernmentGrants?Applicable□Notapplicable
Unit:RMB
Accountingitems
| Accountingitems | Beginningbalance | Amountofnewsubsidy | Amountrecordedintonon-operatingincomeintheReportingPeriod | AmountrecordedintootherincomeintheReportingPeriod | Otherchanges | Endingbalance | Relatedtoassets/relatedincome |
| Deferredincome | 32,795,896.48 | 3,409,729.46 | 29,386,167.02 | Relatedtoassets |
3.GovernmentGrantsRecognizedasCurrentProfitorLoss?Applicable□Notapplicable
Unit:RMB
| Accountingitems | Amountforthecurrentperiod | Amountforthepreviousperiod |
| Otherincome | 7,553,294.84 | 6,419,303.33 |
XI.TheRiskRelatedtoFinancialInstruments
1.VariousTypesofRisksArisingfromFinancialInstrumentsTheCompany’sprincipalfinancialinstrumentsincludefinancialassetsatfairvaluethroughprofitorloss,otherequityinstrumentinvestments,othernon-currentfinancialassets,accountsreceivable,accountspayable,etc.DetaileddisclosuresofthesefinancialinstrumentsareprovidedintherelevantsectionsofNoteVII.Therisksassociatedwiththesefinancialinstruments,aswellastheCompany’sriskmanagementpoliciestomitigatesuchrisks,aredescribedbelow.TheCompany’smanagementmanagesandmonitorstheseriskexposurestoensuretheyremainwithindefinedlimits.
TheCompanyemployssensitivityanalysistoassessthepotentialimpactofreasonablypossiblechangesinriskvariablesoncurrentperiodprofitorlossorshareholders’equity.Sinceriskvariablesrarelychangeinisolationandthecorrelationbetweenvariablessignificantlyinfluencestheultimateimpactofchangesinanysinglevariable,thefollowinganalysisassumeseachvariablechangesindependently.
1.RiskManagementObjectivesandPoliciesTheCompany’sriskmanagementobjectivesaretoachieveanappropriatebalancebetweenriskandreturn,minimizetheadverseimpactofrisksonoperationalperformance,andmaximizetheinterestsofshareholdersandotherequityinvestors.Basedontheseobjectives,theCompany’sfundamentalriskmanagementstrategyinvolvesidentifyingandanalyzingrisks,establishingrisktolerancethresholds,implementingriskmanagementmeasures,andconductingreliablemonitoringtomaintainriskswithindefinedlimits.
(1)MarketRisk
①ForeignExchangeRiskForeignexchangeriskreferstotheriskoflossduetoexchangeratefluctuations.TheCompanyisprimarilyexposedtoforeignexchangeriskrelatedtoUSDandEUR.ApartfromoverseasoperationsdenominatedinUSDandEUR,theCompany’sothermajorbusinessactivitiesaresettledinRMB.AsofDecember31,2024,theCompany’sforeigncurrencymonetaryitemsincludecashandcashequivalents,accountsreceivable,andaccountspayable(seeNoteVII.57).TheforeignexchangeriskarisingfromtheseassetsandliabilitiesmayimpacttheCompany’sfinancialperformance.TheCompanycloselymonitorstheeffectsofexchangeratefluctuationsonitsforeignexchangeriskexposure.
②InterestRateRisk–CashFlowVariabilityRiskTheCompany’sexposuretocashflowvariabilityduetointerestratechangesprimarilyrelatestofloating-ratebankdeposits.TheCompany’spolicyistomaintainthesedepositsatfloatingrates.
③OtherPriceRiskTheCompany’sinvestmentsclassifiedasfinancialassetsatfairvaluethroughprofitorlossorfairvaluethroughothercomprehensiveincomearemeasuredatfairvalueatthebalancesheetdate.Consequently,theCompanyisexposedtopricevolatilityinthesecuritiesmarket.TheCompanymitigatesequitypriceriskbymaintainingadiversifiedportfolioofequitysecurities.
(2)CreditRiskCreditriskreferstotheriskthatonepartytoafinancialinstrumentfailstofulfillitsobligations,resultinginfinanciallosstotheotherparty.TheCompany’screditriskprimarilyarisesfromreceivables.Tomanagethisrisk,theCompanyhasimplementedthefollowingmeasures:
?Transactionsareconductedonlywithapprovedandcreditworthythirdparties.?Creditassessmentsareperformedforallcustomersrequestingcreditterms.?Accountsreceivablebalancesarecontinuouslymonitoredtoavoidsignificantbaddebtexposure.CreditRiskExposure:
?Cashandbankacceptancebillshavelowcreditriskastheyinvolvereputable,highlyratedbanks.?Otherfinancialassets(e.g.,accountsreceivable,otherreceivables)areexposedtocounterpartydefaultrisk,
withmaximumexposureequaltotheircarryingamounts.TheCompanydoesnotrequirecollateral,asittransactsonlywithapprovedandcreditworthyparties.Creditriskconcentrationismanagedbycustomer.AsofDecember31,2024,60.75%(December31,2023:54.66%)oftheCompany’saccountsreceivablebalancewasattributabletoitstopfivecustomers.Nocollateralorcreditenhancementsareheldforaccountsreceivable.CriteriaforSignificantIncreaseinCreditRisk:
Ateachreportingdate,theCompanyassesseswhethercreditriskhasincreasedsignificantlysinceinitialrecognition.Thisevaluationconsidersqualitativeandquantitativefactors,includinghistoricaldata,externalcreditratings,andforward-lookinginformation.Asignificantincreaseincreditriskisdeemedtooccurwhenoneormoreofthefollowingtriggersaremet:
?Quantitative:Probabilityofdefault(PD)increasesbyamaterialmargincomparedtoinitialrecognition.?Qualitative:Materialadversechangesinthedebtor’sfinancialconditionorinclusioninawatchlist.DefinitionofCredit-ImpairedAssets:
Todeterminecreditimpairment,theCompanyalignswithinternalriskmanagementobjectivesandconsidersquantitativeandqualitativeindicators,including:
?Significantfinancialdifficultyofthedebtor;?Breachofcontract(e.g.,paymentdefaultordelinquency);?Concessionsgrantedduetothedebtor’sfinancialdistress;?Likelihoodofbankruptcyorrestructuring;?Disappearanceofanactivemarketfortheasset;?Purchaseororiginationofafinancialassetatadeepdiscountreflectingcreditloss.ExpectedCreditLoss(ECL)MeasurementParameters:
ECLismeasuredbasedon12-monthorlifetimeexpectedcreditlosses,dependingonwhethercreditriskhasincreasedsignificantlyorimpairmenthasoccurred.Keyparametersinclude:
?ProbabilityofDefault(PD):Likelihoodofdefaultwithin12monthsortheremaininglifetime.Adjustedfor
forward-lookingmacroeconomicfactors.?LossGivenDefault(LGD):Expectedlossseverityupondefault,varyingbycounterpartytype,recourse,andcollateral.?ExposureatDefault(EAD):Amountexpectedtobeowedatthetimeofdefault.Forward-LookingInformation:
ECLcalculationsincorporateforward-lookingmacroeconomicindicators,analyzedthroughhistoricaldataregressionandexpertjudgment.
(3)LiquidityRiskTheCompanymanagesliquidityriskbymaintainingsufficientcashandcashequivalents,monitoredtomeetoperationalneedsandmitigatecashflowvolatility.Managementensurescompliancewithborrowingagreementsandmonitorsbankloanutilization.
2.FinancialAssets
(1)ClassificationofTransferMethods?Applicable□Notapplicable
Unit:RMB
Transfermethod
| Transfermethod | Natureoftransferredfinancialassets | Amountoftransferredfinancialassets | Recognitionterminationornot | Basisforrecognitiontermination |
| Endorsement/discount | Notesreceivable | 234,736,335.20 | Notderecognized | TheCompanyretainssubstantiallyalloftherisksandrewards,includingthe |
riskofdefaultassociatedwithits
| riskofdefaultassociatedwithits | ||||
| Endorsement/discount | Accountsreceivablefinancing | 865,680,649.89 | Derecognized | TheCompanytransfersalmostalltherisksandrewards |
| Total | 1,100,416,985.09 |
(2)FinancialAssetsDerecognizedduetoTransfer?Applicable□Notapplicable
Unit:RMB
| Item | Transfermethodoffinancialassets | Amountofderecognizedfinancialassets | Gainsorlossesrelatedtoderecognition |
| Accountsreceivablefinancing | Endorsement | 301,693,937.09 | |
| Accountsreceivablefinancing | Discount | 563,986,712.80 | -3,313,989.60 |
| Total | 865,680,649.89 | -3,313,989.60 |
(3)ContinuedInvolvementintheTransferofAssetsFinancialAssets?Applicable□Notapplicable
Unit:RMB
| Item | Transfermethodofassets | Amountofassetsresultingfromcontinuedinvolvement | Amountofliabilitiesresultingfromcontinuedinvolvement |
| Notesreceivable | Endorsement | 163,858,135.20 | 163,858,135.20 |
| Notesreceivable | Discount | 70,878,200.00 | 70,878,200.00 |
| Total | 234,736,335.20 | 234,736,335.20 |
XII.TheDisclosureofFairValue
1.EndingFairValueofAssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Endingfairvalue | |||
| Fairvaluemeasurementitemsatlevel1 | Fairvaluemeasurementitemsatlevel2 | Fairvaluemeasurementitemsatlevel3 | Total | |
| I.Consistentfairvaluemeasurement | -- | -- | -- | -- |
| (I)Tradingfinancialassets | ||||
| 1.Financialassetsatfairvaluethroughprofitorloss | ||||
(1)Debtinstrumentinvestment
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | 52,598,990.00 | 52,598,990.00 | ||
| (3)Derivativefinancialassets | ||||
| (4)Wealthmanagementinvestments | 251,068,469.65 | 251,068,469.65 | ||
| 2.Financialassetsdesignatedtobemeasuredatfairvalueandthechangesincludedintothecurrentprofitorloss | ||||
| (1)Debtinstrumentinvestment | ||||
| (2)Equityinstrumentinvestment | ||||
| (II)Otherinvestmentsindebtobligations | ||||
| (III)Otherequityinstrumentinvestment | 592,483,000.00 | 348,637,058.72 | 941,120,058.72 | |
| (IV)Investmentproperty | ||||
| 1.Landuserightforlease | ||||
| 2.Buildingsleasedout | ||||
| 3.Landuserightheldandplannedtobetransferredonceappreciating | ||||
| (V)Livingassets | ||||
| 1.Consumptivelivingassets | ||||
| 2.Productivelivingassets | ||||
| Accountsreceivablefinancing | 223,261,002.76 | 223,261,002.76 | ||
| Othernon-currentfinancialassets | 377,869,217.49 | 377,869,217.49 | ||
| Totalassetsconsistentlymeasuredbyfair | 645,081,990.00 | 251,068,469.65 | 949,767,278.97 | 1,845,917,738.62 |
value
| value |
| (VI)Tradingfinancialliabilities |
| Ofwhich:Issuedtradingbonds |
| Derivativefinancialliabilities |
| Other |
| (VII)Financialliabilitiesdesignatedtobemeasuredatfairvalueandthechangesrecordedintothecurrentprofitorloss |
| Totalliabilitiesconsistentlymeasuredbyfairvalue |
| II.Inconsistentfairvaluemeasurement |
| (1)Assetsheldforsale |
| Totalassetsinconsistentlymeasuredbyfairvalue |
| Totalliabilitiesinconsistentlymeasuredbyfairvalue |
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
Forthelistedcompanystocksheldbythecompanyintheheld-for-tradingfinancialassetsmeasuredatfairvalue,theclosingmarketpriceonthebalancesheetdatewasthebasisforthemeasurementoffairvalue.
3.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel2Wealthmanagementandinvestment:Theunderlyingassetsofinvestmentinwealthmanagementproductsincludebondassets,depositassets,fundassets,etc.Theportfolioofinvestmentassetsshouldbedynamicallymanaged.Thefairvalueofwealthmanagementproductsshouldbeadjustedaccordingtotheyieldofsimilarproductsprovidedbythecounterparty.
4.ValuationTechniqueAdoptedandNatureandAmountDeterminationofImportantParametersforConsistentandInconsistentFairValueMeasurementItemsatLevel3
(1)Accountsreceivablefinancing:Accountsreceivablefinancingisabankacceptancewithhighcreditrating,shortmaturityandlowrisk.Theparamountisclosetothefairvalueandisusedasthefairvalue.
(2)Amongothernon-currentfinancialassets:
TheequityinstrumentinvestmentinJiangsuHorizonNewEnergyTechnologyCo.,Ltd.(amanufactureroflithiumbatteryseparatorswhosemainproductsincludecoatedproductsandbasefilms,primarilyusedinnewenergyvehiclepowerbatteries,3Cconsumerbatteries,andenergystoragebatteries)ischaracterizedbyhightechnicalcomplexity,lengthyR&Dcycles,andsubstantialcapitalinvestment.Thecompanyisinarapiddevelopmentphase,withnumerousinvestmentprojectsstillunderconstructionthathavenotyetgeneratedstablerevenueorprofits.However,financingactivitieshavebeenfrequent,withfiveequityfinancingsconductedinthepastthreeyears.Accordingly,theCompanyhasdeterminedthefairvalueofthisequityinvestmentusingthemostrecentfinancingpriceadjustmentmethodandengagedanappraisalfirmtovalidatethevaluation.
(3)Amongotherequityinstrumentinvestments:
TheinvestmentsinChengduChangwanDieselEngineSalesCo.,Ltd.,ChongqingWanzhouChangwanDieselEnginePartsCo.,Ltd.,ChangzhouEconomicandTechnologicalDevelopmentCompany,ChangzhouTractorCompany,ChangzhouIndustrialCapitalMutualAidAssociationoftheEconomicCommission,andBeijingEngineeringMachineryAgriculturalMachineryCompany,totalingRMB1.21million,aremeasuredatafairvalueofRMB0.00duetotherecoverabilityoftheinvestedamounts.ForChangzhouCollaborativeInnovationEquityInvestmentPartnership(LimitedPartnership),establishedinOctober2017,theyear-endpartners'equityhasincreasedduetofairvaluechangesinitsequityholdings.Nomaterialchangeshaveoccurredinitsoperatingenvironment,businessconditions,orfinancialposition.Thus,theCompanyhasdetermineditsfairvaluebasedonthepartnership’snetassetvalueattheperiod-end.
5.TransfersBetweenFairValueHierarchyLevelsforRecurringFairValueMeasurements:ReasonsforTransfersandPoliciesforDeterminingTransferTimingDuringthecurrentyear,notransfersoccurredbetweenLevel1andLevel2ofthefairvaluehierarchyfortheCompany’sfinancialassetsandliabilities,norwerethereanytransfersintooroutofLevel3.
6.ChangesinValuationTechniquesandReasonsforSuchChangesDuringthePeriodNochangesweremadetovaluationtechniquesduringthereportingperiod.
7.FairValueInformationofFinancialAssetsandLiabilitiesNotMeasuredatFairValueThefinancialassetsandliabilitiesmeasuredatamortizationcostmainlyincludenotesreceivable,accountsreceivable,otherreceivables,short-termborrowings,accountspayable,otherpayables,etc.Thedifferencebetweenthecarryingvalueandfairvalueforfinancialassetsandliabilitiesnotmeasuredatfairvalueissmall.
XIII.RelatedPartyandRelated-partyTransactions
1.InformationRelatedtotheCompanyastheParentoftheCompany
Name
| Name | Registrationplace | Natureofbusiness | Registeredcapital | ProportionofshareheldbytheCompanyastheparentagainsttheCompany | ProportionofvotingrightsownedbytheCompanyastheparentagainsttheCompany |
| ChangzhouInvestmentGroupCo.,Ltd. | Changzhou | Investmentandoperationsofstate-ownedassets,assetsmanagement(excludingfinancialbusiness),investmentconsulting(excludingconsultingoninvestmentinsecuritiesandoptions),etc. | RMB1.2billion | 32.26% | 32.26% |
Informationabouttheparentcompanyoftheenterprise:
TheparentcompanyoftheenterpriseisChangzhouInvestmentGroupCo.,Ltd.Accordingtothe"ImplementationPlanforTransferringPartofState-ownedCapitaltoEnrichSocialSecurityFundsinJiangsuProvince"(SuZhengfa[2020]No.27)issuedbytheprovincialgovernment,the"NoticeonTransferringPartofState-ownedCapitalinCitiesandCountiestoEnrichSocialSecurityFunds"(SuCaigongmao[2020]No.139)issuedbyJiangsuProvincialDepartmentofFinanceandfiveotherdepartments,andthe"NoticeonTransferringPartofMunicipal(District)State-ownedCapitaltoEnrichSocialSecurityFunds"(ChangCaigongmao[2020]No.
4)issuedbyChangzhouMunicipalFinanceBureauandfourotherdepartments,10%ofthestate-ownedequityoftheInvestmentGroupheldbythePeople'sGovernmentofChangzhouCitywastransferredtoJiangsuProvincialDepartmentofFinancewithoutcompensation.Aftertheequitytransfer,thePeople'sGovernmentofChangzhouCityholds90%ofthestate-ownedequityofChangzhouInvestmentGroupCo.,Ltd.,andJiangsuProvincialDepartmentofFinanceholds10%ofthestate-ownedequityofChangzhouInvestmentGroupCo.,Ltd.AccordingtothedocumentofthePeople'sGovernmentofChangzhouCity(ChangZhengfa[2006]No.62),ChangzhouInvestmentGroupCo.,Ltd.isanenterprisewheretheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouCityperformstheinvestor'sresponsibilitiesasauthorizedbythePeople'sGovernmentofChangzhouCity.Therefore,ChangzhouInvestmentGroupCo.,Ltd.isthecontrollingshareholderofthecompany,andtheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouCityremainstheactualcontrollerofthecompany.TheultimatecontrollingpartyoftheenterpriseistheState-ownedAssetsSupervisionandAdministrationCommissionofChangzhouCity.
2.SubsidiariesoftheCompanyRefertoNoteIXfordetails.
3.SituationofjointventuresandassociatedenterprisesofthecompanyRefertoNoteVII.12.LongtermEquityInvestmentsfordetails.
4.InformationonOtherRelatedParties
Name
| Name | RelationshipwiththeCompany |
| ChangzhouSynergeticInnovationPrivateEquityFund(LimitedPartnership) | Participatedinestablishingtheindustrialinvestmentfund |
| JiangsuHorizonNewEnergyTechnologyCo.,Ltd. | ShareholdingenterpriseoftheCompany |
5.RelatedPartyTransactions
(1)Compensationforkeymanagementpersonnel
Unit:RMB
| Item | Currentamountincurred | Amountincurredinthepreviousperiod |
| Compensationforkeymanagementpersonnel | 8,896,700.00 | 7,820,700.00 |
6.Related-partyreceivablesandpayablesTherewerenorelated-partyreceivablesorpayablesduringthereportingperiod.XIV.CommitmentsandContingency
1.SignificantCommitmentsSignificantcommitmentsonbalancesheetdateAsof31December2024,therewasnosignificantcommitmentfortheCompanytodisclose.
2.Contingency
(1)SignificantContingencyonBalanceSheetDateNone
(2)InDespiteofnoSignificantContingencytoDisclose,theCompanyShallAlsoMakeRelevantStatementsTherewasnosignificantcontingencyintheCompany.XV.EventsafterBalanceSheetDate
1.ProfitDistribution
| Dividendtobedistributedforevery10shares(RMB) | 0.1 |
| Bonussharestobedistributedforevery10shares | 0 |
(share)
| (share) | |
| Additionalsharestobeconvertedfromcapitalreserveforevery10shares(share) | 0 |
| Dividendforevery10shares(RMB)declaredafterreviewandapproval | 0.1 |
| Bonussharestobedistributedforevery10shares(share)declaredafterreviewandapproval | 0 |
| Additionalsharestobeconvertedfromcapitalreserveforevery10shares(share)declaredafterreviewandapproval | 0 |
| Profitdistributionplan | OnApril9,2025,theeighthmeetingofthetenthBoardofDirectorsoftheCompanyapprovedthe2024profitdistributionplan,proposingacashdividenddistributionofRMB7,056,925.07.Thisdistributionplanremainssubjecttoreviewandapprovalbytheshareholders'generalmeeting. |
2.SalesReturnNone
3.NotestoOtherEventsafterBalanceSheetDateTherewasnoothereventafterbalancesheetdate.XVI.OtherSignificantEvents
1.SegmentInformation
(1)BasisforDeterminingReportableSegmentsandAccountingPoliciesAstheCompanyanditsmajorsubsidiariesoperatesimilarbusinessactivitiesunderunifiedmanagementwithoutseparatebusinessunits,theCompanyoperatesasasinglereportablesegment.
2.OtherSignificantTransactionsandEventsRelevanttoInvestors'Decision-MakingTheXinbeiDistrictPeople'sGovernmentofChangzhou("NoticeofExpropriationDecisiononState-ownedLandHousing"ChangxinZhengGao[2022]No.6)decidedtoexpropriatethehouseswithinthescopeoftheoldtownrenovationprojectatthesiteofChangchaiCo.,Ltd.'s(hereinafterreferredtoas"theCompany")single-cylinderengineplant,i.e.,ChangchaiCo.,Ltd.ChangzhouSanjingBranch.OnNovember29,2023,theCompanysignedacompensationagreementwiththeHousingandUrban-RuralDevelopmentBureauofChangzhouNationalHi-TechDistrict(Xinbei)andtheHousingExpropriationandCompensationServiceCenterofSanjingSubdistrict,XinbeiDistrict,Changzhou(hereinafterreferredtoas"SanjingSubdistrict"),withatotalagreedcompensationamountofRMB99,929,868.AccordingtothepaymenttermsstipulatedintheCompensationAgreement,theCompanyhasreceivedthefirstinstallmentofcompensation(30%ofthecompensationamount)ofRMB30,000,000(includingRMB1,000,000receivedonDecember29,2023andRMB29,000,000receivedonJanuary
3,2024).Therelevantlandexpropriationworkiscurrentlyinprogress.XVII.NotesofMainItemsintheFinancialStatementsoftheCompanyastheParent
1.AccountsReceivable
(1)DisclosurebyAging
Unit:RMB
Aging
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Withinoneyear(including1year) | 421,962,024.85 | 289,665,029.12 |
| Onetotwoyears | 6,757,507.16 | 1,642,898.19 |
| Twotothreeyears | 936,696.44 | 4,274,309.13 |
| Morethanthreeyears | 99,831,716.27 | 103,238,762.39 |
| Threetofouryears | 4,041,196.12 | 4,376,325.51 |
| Fourtofiveyears | 4,363,228.39 | 1,398,123.34 |
| Over5years | 91,427,291.76 | 97,464,313.54 |
| Total | 529,487,944.72 | 398,820,998.83 |
(2)DisclosurebyWithdrawalMethodsforBadDebts
Unit:RMB
| Category | Endingbalance | Beginningbalance | ||||||||
| Carryingamount | Baddebtprovision | Carryingvalue | Carryingamount | Baddebtprovision | Carryingvalue | |||||
| Amount | Proportion | Amount | Withdrawalproportion | Amount | Proportion | Amount | Withdrawalproportion | |||
| AccountsreceivablewithdrawalofBaddebtprovisionseparatelyaccrued | 14,107,982.76 | 2.66% | 14,107,982.76 | 100.00% | 0.00 | 21,058,702.18 | 5.28% | 21,058,702.18 | 100.00% | 0.00 |
| Ofwhich: | ||||||||||
Accountsreceivablewithdrawalofbaddebtprovisionofbygroup
| Accountsreceivablewithdrawalofbaddebtprovisionofbygroup | 515,379,961.96 | 97.34% | 90,433,295.55 | 17.55% | 424,946,666.41 | 377,762,296.65 | 94.72% | 85,765,458.71 | 22.70% | 291,996,837.94 |
| Ofwhich: | ||||||||||
| Accountsreceivablewithprovisionforbaddebtsbasedoncreditriskcharacteristicsportfolio | 514,704,286.47 | 97.21% | 90,433,295.55 | 17.57% | 424,270,990.92 | 377,762,296.65 | 94.72% | 85,765,458.71 | 22.70% | 291,996,837.94 |
| Accountsreceivablewithprovisionforbaddebtsbasedonrelated-partytransactionsportfoliowithintheconsolidationscope | 675,675.49 | 0.13% | 0.00 | 0.00 | 675,675.49 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 529,487,944.72 | —— | 104,541,278.31 | —— | 424,946,666.41 | 398,820,998.83 | —— | 106,824,160.89 | —— | 291,996,837.94 |
Numberofcategoriesofbaddebtprovisionbyindividualitem:1Provisionforbaddebtsassessedindividually:RMB14,107,982.76,includingsignificantimpairmentitemstotalingRMB12,488,523.68.Thedetailsareasfollows:
Unit:RMB
| Name | Beginningbalance | Endingbalance | ||||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | Withdrawalproportion | Reasonforwithdraw | |
| Customer1 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 2,797,123.26 | 100.00% | Difficulttorecover |
| Customer2 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 2,584,805.83 | 100.00% | Difficulttorecover |
Customer3
| Customer3 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 1,902,326.58 | 100.00% | Difficulttorecover |
| Customer4 | 1,726,935.65 | 1,726,935.65 | 1,759,397.30 | 1,759,397.30 | 100.00% | Difficulttorecover |
| Customer5 | 0.00 | 0.00 | 1,564,000.07 | 1,564,000.07 | 100.00% | Difficulttorecover |
| Customer6 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 1,470,110.64 | 100.00% | Difficulttorecover |
| Customer7 | 420,000.00 | 420,000.00 | 410,760.00 | 410,760.00 | 100.00% | Difficulttorecover |
| Total | 10,901,301.96 | 10,901,301.96 | 12,488,523.68 | 12,488,523.68 | -- | -- |
Numberofcategoriesofbaddebtprovisionbygroup:1Withdrawalofbaddebtprovisionbygroup:
Unit:RMB
| Item | Endingbalance | ||
| Carryingamount | Baddebtprovision | Withdrawalproportion | |
| Within1year | 421,286,349.36 | 8,425,726.99 | 2.00% |
| 1to2years | 6,757,507.16 | 337,875.36 | 5.00% |
| 2to3years | 936,696.44 | 140,504.47 | 15.00% |
| 3to4years | 3,498,933.46 | 1,049,680.04 | 30.00% |
| 4to5years | 4,363,228.39 | 2,617,937.03 | 60.00% |
| Over5years | 77,861,571.66 | 77,861,571.66 | 100.00% |
| Total | 514,704,286.47 | 90,433,295.55 | |
Pleaserefertotherelevantinformationofdisclosureofbaddebtprovisionofotheraccountsreceivableifadoptingthegeneralmodeofexpectedcreditlosstowithdrawbaddebtprovisionofaccountsreceivable.
□Applicable√Notapplicable
(3)BadDebtProvisionWithdrawal,ReversedorRecoveredintheCurrentPeriod
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Verification | Others | |||
| Baddebtprovisionaccruedbyitem | 21,058,702.18 | 1,596,461.72 | 7,735,818.14 | 811,363.00 | 14,107,982.76 | |
Withdrawalofbaddebtprovisionbygroup
| Withdrawalofbaddebtprovisionbygroup | 85,765,458.71 | 4,882,766.98 | 214,930.14 | 90,433,295.55 | ||
| Total | 106,824,160.89 | 6,479,228.70 | 7,735,818.14 | 1,026,293.14 | 104,541,278.31 |
Ofwhichsignificantamountofrecoveredortransferred-backbaddebtprovisionforthecurrentperiod:
Unit:RMB
| Name | Reversedorrecovered | MethodofRecovery | BasisandRationaleforDeterminingtheOriginalProvisionforBadDebtRatios |
| Customer1 | 6,215,662.64 | Recoveredincashthroughmutualmediation | Accountsreceivableagedover5years,fullyprovidedforbaddebts |
| Customer2 | 1,510,915.50 | Recoveredincashthroughmutualmediation | Accountsreceivableagedover5years,fullyprovidedforbaddebts |
| Total | 7,726,578.14 |
(4)AccountsReceivableWritten-offinCurrentPeriod
Unit:RMB
| Item | Written-offamount |
| Accountsreceivablewithactualverification | 1,026,293.14 |
Ofwhichtheverificationofsignificantaccountsreceivable:
Unit:RMB
| Nameoftheentity | Natureoftheaccountsreceivable | Verifiedamount | Reasonforverification | Verificationproceduresperformed | Arisingfromrelated-partytransactionsornot |
| Customer1 | Accountsreceivableforgoods | 811,363.00 | Theportionunrecoverableaftermutualmediation | MinutesoftheExecutiveOffice | No |
| Total | 811,363.00 |
(5)Top5oftheEndingBalanceoftheAccountsReceivableandtheContractAssetsCollectedaccordingtoArrearsParty
Unit:RMB
| Nameoftheentity | Endingbalanceofaccountsreceivable | Endingbalanceofcontractassets | Endingbalanceofaccountsreceivableandcontractassets | Proportiontototalendingbalanceofaccountsreceivableandcontractassets | Endingbalanceofbaddebtprovisionofaccountsreceivableandimpairmentprovisionforcontractassets |
Customer1
| Customer1 | 137,231,328.98 | 0.00 | 137,231,328.98 | 25.92% | 2,744,626.58 |
| Customer2 | 136,022,798.00 | 0.00 | 136,022,798.00 | 25.69% | 2,869,530.46 |
| Customer3 | 37,488,328.71 | 0.00 | 37,488,328.71 | 7.08% | 749,766.57 |
| Customer4 | 25,787,025.82 | 0.00 | 25,787,025.82 | 4.87% | 515,740.52 |
| Customer5 | 21,455,202.45 | 0.00 | 21,455,202.45 | 4.05% | 429,104.05 |
| Total | 357,984,683.96 | 0.00 | 357,984,683.96 | 67.61% | 7,308,768.18 |
2.OtherReceivables
Unit:RMB
| Item | Endingbalance | Beginningbalance |
| Interestreceivable | ||
| Dividendreceivable | 7,165,080.00 | |
| Otherreceivables | 17,123,687.65 | 399,142,024.92 |
| Total | 24,288,767.65 | 399,142,024.92 |
(1)Dividendreceivable
Unit:RMB
| Projects(orInvesteeEntities) | Endingbalance | Beginningbalance |
| JiangsuBank2024InterimDividendAnnouncement | 7,165,080.00 | |
| Total | 7,165,080.00 |
(2)OtherReceivables
1)OtherReceivablesClassifiedbyAccountsNature
Unit:RMB
| Nature | Endingcarryingvalue | Beginningcarryingvalue |
| Related-partytransactionswithintheconsolidationscope | 31,828,957.95 | 366,245,432.00 |
| Marginandcashpledge | 1,300.00 | 1,300.00 |
| Otherentitycurrentaccounts | 20,438,842.07 | 67,344,009.68 |
| Pettycashandborrowingsbyemployees | 763,839.63 | 884,233.75 |
| Other | 13,697,080.26 | 13,638,079.94 |
| Total | 66,730,019.91 | 448,113,055.37 |
2)DisclosurebyAging
Unit:RMB
Aging
| Aging | Endingcarryingamount | Beginningcarryingamount |
| Within1year(including1year) | 5,982,988.63 | 301,730,833.26 |
| 1to2years | 11,494,533.03 | 113,974,034.71 |
| 2to3years | 16,754,590.84 | 12,802.00 |
| Over3years | 32,497,907.41 | 32,395,385.40 |
| 3to4years | 281,647.36 | 30,300.00 |
| 4to5years | 30,300.00 | 321,735.17 |
| Over5years | 32,185,960.05 | 32,043,350.23 |
| Total | 66,730,019.91 | 448,113,055.37 |
3)DisclosurebyWithdrawalMethodsforBadDebtsProvisionforbaddebtsbasedongeneralmodelofexpectedcreditlosses
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossofthenext12months | Expectedlossintheduration(creditimpairmentnotoccurred) | Expectedlossintheduration(creditimpairmentoccurred) | ||
| Balanceof1January2024 | 46,873.20 | 16,709.10 | 48,907,448.15 | 48,971,030.45 |
| Balanceof1January2024intheCurrentPeriod | —— | —— | —— | —— |
| --TransfertoSecondstage | -5,181.98 | 5,181.98 | ||
| --TransfertoThirdstage | ||||
| --ReversetoSecondstage | ||||
| --ReversetoFirststage | ||||
| WithdrawaloftheCurrentPeriod | -2,796.14 | 22,497.90 | 615,600.05 | 635,301.81 |
| ReversaloftheCurrentPeriod |
Write-offsoftheCurrentPeriod
| Write-offsoftheCurrentPeriod | ||||
| VerificationoftheCurrentPeriod | ||||
| Otherchanges | ||||
| Balanceof31December2024 | 38,895.08 | 44,388.98 | 49,523,048.20 | 49,606,332.26 |
Changesofcarryingamountwithsignificantamountchangedoflossprovisioninthecurrentperiod
□Applicable√Notapplicable
4)BadDebtProvisionWithdrawn,ReversedorRecoveredintheCurrentPeriodWithdrawalofbaddebtprovision:
Unit:RMB
| Category | Beginningbalance | Changesinthecurrentperiod | Endingbalance | |||
| Withdrawal | Reversedorrecovered | Charged-off/Written-off | Others | |||
| Baddebtprovisionseparatelyaccrued | 21,844,634.06 | 600,193.44 | 22,444,827.50 | |||
| Withdrawalofbaddebtprovisionbygroup | 27,126,396.39 | 35,108.37 | 27,161,504.76 | |||
| Total | 48,971,030.45 | 635,301.81 | 49,606,332.26 | |||
5）Write-offofOtherReceivablesDuringtheReportingPeriod:Nil
6)Top5oftheEndingBalanceofOtherReceivablesCollectedaccordingtotheArrearsParty
Unit:RMB
| Nameoftheentity | Nature | Endingbalance | Aging | Proportiontototalendingbalanceofotherreceivables% | Endingbalanceofbaddebtprovision |
ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd.
| ChangzhouChangchaiHorizonAgriculturalEquipmentCo.,Ltd. | Related-partytransactionswithintheconsolidationscope | 16,828,957.95 | 1-3years | 25.22% | 16,828,957.95 |
| ChangzhouChangchaiBenniuDieselEngineFittingsCo.,Ltd. | Related-partytransactionswithintheconsolidationscope | 15,000,000.00 | 1-3years | 22.48% | |
| ChangzhouCompressorFactory | Currentaccounts | 2,940,000.00 | Over5years | 4.41% | 2,940,000.00 |
| ChangchaiGroupImp.&Exp.Co.,Ltd. | Currentaccounts | 2,853,188.02 | Over5years | 4.28% | 2,853,188.02 |
| ChangzhouNewDistrictAccountingCenter | Currentaccounts | 1,626,483.25 | Over5years | 2.44% | 1,626,483.25 |
| Total | 39,248,629.22 | 58.83% | 24,248,629.22 |
3.Long-termEquityInvestment
Unit:RMB
| Item | Endingbalance | Beginningbalance | ||||
| Carryingamount | Depreciationreserves | Carryingvalue | Carryingamount | Depreciationreserves | Carryingvalue | |
| Investmenttosubsidiaries | 875,279,449.94 | 7,000,000.00 | 868,279,449.94 | 583,443,530.03 | 7,000,000.00 | 576,443,530.03 |
| Investmenttojointventuresandassociatedenterprises | 44,182.50 | 44,182.50 | 44,182.50 | 44,182.50 | ||
| Total | 875,323,632.44 | 7,044,182.50 | 868,279,449.94 | 583,487,712.53 | 7,044,182.50 | 576,443,530.03 |
(1)InvestmenttoSubsidiaries
Unit:RMB
Investee
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | Endingbalance(Carryingvalue) | Endingbalanceofdepreciationreserve | |||
| Additionalinvestment | Reducedinvestment | Withdrawalofimpairmentprovision | Others | |||||
| 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 | 7,000,000.00 | 0.00 | 7,000,000.00 | ||||
| ChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. | 47,286,230.03 | 47,286,230.03 | ||||||
| JiangsuChangchaiMachineryCo.,Ltd. | 300,000,000.00 | 291,835,919.91 | 591,835,919.91 | |||||
ChangzhouXingshengPropertyManagementCo.,Ltd.
| ChangzhouXingshengPropertyManagementCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | ||||
| ZhenjiangSiyangDieselEngineManufacturingCo.,Ltd. | 40,690,800.00 | 40,690,800.00 | ||||
| Total | 576,443,530.03 | 7,000,000.00 | 291,835,919.91 | 868,279,449.94 | 7,000,000.00 |
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
| Investee | Beginningbalance(carryingvalue) | Beginningbalanceofdepreciationreserve | Increase/decreaseforthecurrentperiod | Endingbalance(Carryingvalue) | Endingbalanceofdepreciationreserve | |||||||
| Additionalinvestment | Reducedinvestment | Gainsandlossesrecognizedundertheequitymethod | Adjustmentofothercomprehensiveincome | Changesofotherequity | Cashbonusorprofitsannouncedtoissue | Withdrawalofimpairmentprovision | Others | |||||
| I.Jointventures | ||||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
| II.Associatedenterprises | ||||||||||||
| BeijingTsinghuaXingyeIndustrialInvestmentManagement | 0.00 | 44,182.50 | 0.00 | 44,182.50 | ||||||||
Co.,Ltd.
| Co.,Ltd. | |||||
| Subtotal | 0.00 | 44,182.50 | 0.00 | 44,182.50 | |
| Total | 0.00 | 44,182.50 | 0.00 | 44,182.50 |
Therecoverableamountisdeterminedbasedonthenetamountofthefairvalueminusdisposalcosts
□Applicable√NotapplicableTherecoverableamountisdeterminedbythepresentvalueoftheforecastedfuturecashflow.
□Applicable√NotapplicableThereasonforthediscrepancybetweentheforegoinginformationandtheinformationusedintheimpairmenttestsinprioryearsorexternalinformation:NotapplicableThereasonforthediscrepancybetweentheinformationusedintheCompany'simpairmenttestsinprioryearsandtheactualsituationofthoseyears:Notapplicable
4.OperatingRevenueandCostofSales
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear | ||
| Operatingrevenue | Costofsales | Operatingrevenue | Costofsales | |
| Mainoperations | 2,152,289,877.26 | 1,923,630,912.50 | 1,978,548,527.91 | 1,769,939,205.73 |
| Otheroperations | 109,306,807.66 | 102,287,240.76 | 78,572,385.42 | 61,861,919.26 |
| Total | 2,261,596,684.92 | 2,025,918,153.26 | 2,057,120,913.33 | 1,831,801,124.99 |
Breakdowninformationofoperatingincomeandoperatingcost:
Unit:RMB
| Categoryofcontracts | Segment1 | Total | ||
| OperatingRevenue | Operatingcost | OperatingRevenue | Operatingcost | |
| BusinessType | ||||
| Ofwhich: | ||||
| Single-cylinderdieselengines | 900,810,856.26 | 824,628,837.72 | 900,810,856.26 | 824,628,837.72 |
| Multi-cylinderdieselengines | 1,142,838,583.70 | 1,011,740,533.20 | 1,142,838,583.70 | 1,011,740,533.20 |
| Otherproducts | 47,720,093.13 | 42,848,780.41 | 47,720,093.13 | 42,848,780.41 |
| Fittings | 60,920,344.17 | 44,412,761.17 | 60,920,344.17 | 44,412,761.17 |
| Classificationbyoperatingregion | ||||
Ofwhich:
| Ofwhich: | ||||
| Salesindomesticmarket | 1,872,581,326.84 | 1,647,638,286.26 | 1,872,581,326.84 | 1,647,638,286.26 |
| Exportsales | 279,708,550.42 | 275,992,626.24 | 279,708,550.42 | 275,992,626.24 |
| Total | 2,152,289,877.26 | 1,923,630,912.50 | 2,152,289,877.26 | 1,923,630,912.50 |
Informationinrelationtothetransactionpriceapportionedtotheresidualcontractperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsofcontractssignedbutnotperformedornotfullyperformedyetwasRMB0attheperiod-end.
5.InvestmentIncome
Unit:RMB
| Item | ReportingPeriod | Sameperiodoflastyear |
| Investmentincomefromdisposalofheld-for-tradingfinancialassets | 6,671,015.98 | 7,022,401.48 |
| Dividendincomefromholdingofotherequityinstrumentinvestment | 18,163,080.00 | 11,482,380.00 |
| Interestincomefromholdingofdebtobligationinvestments | 499,990.25 | 1,463,921.82 |
| Accountsreceivablefinancing-discountinterestofbankacceptancebills | -2,778,698.46 | -4,894,619.98 |
| Incomefromrefinancingoperations | 95,937.38 | 28,498.48 |
| Total | 22,651,325.15 | 15,102,581.80 |
XVIII.SupplementaryMaterials
1.ItemsandAmountsofNon-recurringProfitorLoss
√Applicable□Notapplicable
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets | 304,377.71 | |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 3,477,338.38 | Thegovernmentsubsidiesincludedinthecurrentperiod'sprofitandlossamountedtoRMB7,553,294.84.DeductinggovernmentgrantsrelatedtoassetstransferredfromdeferredincometotalingRMB3,409,729.46andjobretentionsubsidiesofRMB666,227.00.Thegovernmentsubsidiesincludedinthecurrentperiod'snonrecurringprofitandlossamountedtoRMB3,477,338.38. |
Gainsorlossesfromchangesinfairvalueoffinancialassetsandliabilitiesheldbynon-financialenterprises,andgainsorlossesfromdisposaloffinancialassetsandliabilities,exceptforeffectivehedgingactivitiesrelatedtothecompany'snormalbusinessoperations
| Gainsorlossesfromchangesinfairvalueoffinancialassetsandliabilitiesheldbynon-financialenterprises,andgainsorlossesfromdisposaloffinancialassetsandliabilities,exceptforeffectivehedgingactivitiesrelatedtothecompany'snormalbusinessoperations | -58,411,420.91 |
| Gainsorlossesfromentrustingotherswithinvestmentsorassetmanagement | 1,122,559.94 |
| Reversalofimpairmentprovisionsforreceivablesthathaveundergoneseparateimpairmenttesting | 7,735,818.14 |
| Gainsorlossesfromdebtrestructuring | 267,434.70 |
| Othernon-operatingincomeandexpensesotherthantheabove | 1,952,095.73 |
| Less:Incometaxeffects | -9,444,181.95 |
| Non-controllinginterestseffects(aftertax) | 361,173.09 |
| Total | -34,468,787.45 |
Othersthatmeetsthedefinitionofnon-recurringgain/loss:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ExplainthereasonsiftheCompanyclassifiesanyextraordinarygain/lossitemmentionedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringGainsandLossesasarecurrentgain/lossitem
□Applicable√Notapplicable
2.ReturnonEquityandEarningsPerShare
| ProfitasofReportingPeriod | WeightedaverageROE(%) | EPS(Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 0.55% | 0.0262 | 0.0262 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductionofnon-recurringprofitorloss | 1.57% | 0.0750 | 0.0750 |
3.DifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards
(1)DifferencesbetweenDisclosedNetProfitsandNetAssetsinFinancialReportinaccordancewithInternationalAccountingStandardsandChineseAccountingStandards
□Applicable?Notapplicable
(2)DifferencesbetweenDisclosedNetProfitsandNetAssetsinFinancialReportinaccordancewithOverseasAccountingStandardsandChineseAccountingStandards
□Applicable?Notapplicable
(3)ExplainReasonsfortheDifferencesbetweenAccountingDataUnderDomesticandOverseasAccountingStandards;forAnyAdjustmentMadetotheDifferenceExistingintheDataAuditedbytheForeignAuditingAgent,SuchForeignAuditingAgent'sNameShallBeClearlyStated
□Applicable?Notapplicable
TheBoardofDirectorsChangchaiCompany,Limited
11April2025