The Abstract of the 2015 Annual Report of Changchai Company, Limited Stock Code: 000570, 200570 Stock Abbr.: Changchai A, Changchai B Public Announcement No.: 2016-001 Changchai Company, Limited
The Abstract of the 2015 Annual Report
I. Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating results, financial condition and future development planning of the Company, investors are kindly reminded to read the full text carefully on the media designated by the China Securities Regulatory Commission (the “CSRC”).
This Abstract is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Auditor’s non-standard opinion
□ Applicable√ Inapplicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share capital for the reporting period, which has been reviewed and approved at the board meeting
√ Applicable□ Inapplicable
Share capital increase from the capital reserve
□ Yes√ No
Preliminary plan for profit distribution to the common shareholders for the reporting period which has been reviewed and approved at the board meeting: Based on the total 561,374,326 shares, a cash dividend of RMB0.23 (tax included) will be distributed to all the shareholders for every 10 shares that they hold. No bonus shares will be granted and no capital reserve will be turned into share capital.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been reviewed and approved at the board meeting
□ Applicable√ Inapplicable
Company profile
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|-|-|-|-|-|
||Changchai A, ChangchaiB|||000570, 200570|
|Stock abbr.||Stock code|||
|Stock exchange|Shenzhen Stock Exchange||||
|Contact information|Company Secretary||Securities Affairs Representative||
|Name|Shi Jianchun||He Jianjiang||
||123 Huaide Middle Road, Changzhou,Jiangsu, China||123 Huaide Middle Road, Changzhou,Jiangsu, China||
|Office address|||||
|Fax|(86)519-86630954||(86)519-86630954||
|Tel.|(86)519-86610041||(86)519-68683155||
|E-mail address|ccsjc@changchai.com||cchjj@changchai.com||

II. Brief introduction to the main business or products in the reporting period
As a manufacturer, we specialize in the manufacture and sale of diesel engines, diesel engine fittings and castings,
gasoline engines, gasoline engine fittings, cereal harvesting machinery, rotovators, walking tractors, molds and
The Abstract of the 2015 Annual Report of Changchai Company, Limited jigs as well as the assembly and sale of diesel engine and gasoline engine supporting sets.
We mainly manufacture and sell small and medium-sized single-cylinder and multi-cylinder diesel engines under the brand of “Changchai”, which are often used in tractors, combine-harvesters, light commercial vehicles, agriculture equipment, small-sized engineering machinery, generator sets, ship machines, etc.
III. Accounting and financial highlights
1. Accounting and financial highlights for the past three years
Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the accounting policy or corrections of accounting errors?
□ Yes√ No
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Increase/decrease of||
||2015|2014|current year over last|2013|
||||year||
|Operating revenues|2,519,799,547.29|2,489,792,063.33|1.21%|2,927,593,052.78|
|Net profits attributable to|71,102,792.49|64,202,144.29|||
||||10.75%|75,712,361.04|
|shareholders of the Company|||||
|Net profits attributable to|||||
|shareholders of the Company|||||
||61,588,462.29|58,685,034.57|4.95%|71,950,142.51|
|after extraordinary gains and|||||
|losses|||||
|Net cash flows from operating|127,926,882.95|-51,507,355.52|||
||||——|31,406,848.48|
|activities|||||
|Basic EPS (RMB Yuan/share)|0.13|0.11|18.18%|0.13|
|Diluted EPS (RMB Yuan/share)|0.13|0.11|18.18%|0.13|
|Weighted average ROE (%)|3.53%|3.28%|0.25%|4.14%|
||||Increase/decrease of||
||As at 31 Dec.|As at 31 Dec.||As at 31 Dec.|
||||current year-end than||
||2015|2014||2013|
||||last year-end||
|Total assets|3,232,406,102.20|3,166,783,758.18|2.07%|3,082,340,149.65|
|Net assets attributable to|2,002,910,311.01|1,936,936,835.27|||
||||3.41%|1,809,577,062.45|
|shareholders of the Company|||||

2. Accounting highlights by quarter
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Q1|Q2|Q3|Q4|
|Operating revenues|650,305,530.50|709,590,370.19|815,273,308.97|344,630,337.63|
|Net profits attributable to|17,279,138.61|20,284,260.57|36,184,587.95|-2,645,194.64|
|shareholders of the Company|||||
|Net profits attributable to|15,137,500.97|20,573,118.31|35,546,486.10|-9,668,643.09|
|shareholders of the Company|||||
|after extraordinary gains and|||||
|losses|||||
|Net cash flows from operating|1,795,087.91|44,932,653.21|48,916,342.35|32,282,799.48|
|activities|||||

The Abstract of the 2015 Annual Report of Changchai Company, Limited Any material differences between the financial indicators above or their summations and those which have been disclosed in quarterly or semi-annual reports?
□ Yes√ No
IV. Share capital and shareholders
1. Numbers of the common shareholders and the preference shareholders with resumed voting rights as well as the shareholdings of the top 10 shareholders
Unit: share
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Total number of||0|
|||Total number|||||||||||
|||||||Total number||||preference|||
|||of common|||||||||||
|Total number||||||of preference||||shareholders with|||
|||shareholders at|||||||||||
|of common||||||shareholders||||resumed voting|||
||57,048|pervious||54,693||||0|||||
|shareholders||||||with resumed||||rights at pervious|||
|||month-end of|||||||||||
|at period-end||||||voting rights at||||month-end of this|||
|||this Report’s|||||||||||
|||||||period-end||||Report’s|||
|||disclosure|||||||||||
|||||||||||disclosure|||
|Shareholdings of top 10 shareholders|||||||||||||
||||||Shareholdin||Total shares||Number of||Pledged or frozen shares||
||||Nature of||||||||||
|Name of shareholder|||||g||held at||restricted||Status of|Number of|
||||shareholder||||||||||
||||||percentage||period-end||shares held||shares|shares|
|State-owned AssetsSupervision andAdministration Commissionof Changzhou MunicipalPeople’s Government|||On behalf ofthe State||30.43%||170,845,236||0||||
|Huang Lihou|||Domesticindividual||1.02%||5,705,000||0||||
|KGI Asia Limited|||Overseascorporation||0.57%||3,224,845||0||||
|BNP Paribas WealthManagement Hong KongBranch|||Overseascorporation||0.55%||3,099,873||0||||
|Southwest Securities-ICBC-Southwest SecuritiesShuangxi Huixin ICBC No.2 Collected AssetManagement Plan|||Other||0.36%||2,000,000||0||||
|Li Min|||Domesticindividual||0.34%||1,918,950||0||||
|China Securities FinanceCorp.|||Other||0.33%||1,826,700||0||||
|Southwest Securities-ICBC-Southwest SecuritiesShuangxi Huixin ICBC No.1 Collected AssetManagement Plan|||Other||0.31%||1,750,000||0||||
|Bank of CommunicationsCo., Ltd.-ChangxinQuantified Core Pioneer|||Other||0.30%||1,661,600||0||||

The Abstract of the 2015 Annual Report of Changchai Company, Limited
||||||
|-|-|-|-|-|
|Mixed Investment Fund|||||
|Vanguard Total InternationalStock Index Fund|Overseascorporation|0.29%|1,626,592|0|
|||It is unknown whether there was any associated relationship among|||
|||the top ten tradable shareholders and among the top ten|||
|Related or acting-in-concert parties among|||||
|||shareholders not subject to trading moratorium, or whether they are|||
|shareholders above|||||
|||persons acting in concert as described by Measures for the|||
|||Administrative of Disclosure of Shareholder Equity Changes.|||
|||Shareholder Huang Lihou held a total of 5,705,000 shares in the|||
|||Company, representing a stake of 1.02%, through a common|||
|||securities account and a client account of collateral securities for|||
|||margin trading. Conducting margin trading in the reporting period,|||
|Shareholders conducting securities margin||he held 5,600,000 shares (a stake of 1.00% in the Company)|||
|trading (if any)||through a client account of collateral securities for margin trading|||
|||in Guotai Junan Securities Co., Ltd. Shareholder Li Lin held|||
|||1,918,950 shares in the Company (a stake of 0.34%) through a|||
|||client account of collateral securities for margin trading in Guosen|||
|||Securities Co. , Ltd.|||

2. Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable√ Inapplicable
No preference shareholders in the reporting period
3. Relationship between the Company and its actual controller in the form of diagram
STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION
COMMISSION OF CHANGZHOU MUNICIPALPEOPLE’S GOVERNMENT
CHANGCHAI COMPANY, LIMITED
V. Discussion and analysis by the management
1. Business review for the reporting period
In 2015, in face of multiple unfavorable factors such as the slowing-down macro-economy, a continuous decrease
in the gross output and sales volume in the diesel engine industry as well as the mounting pressure on production
safety and environmental protection, we carefully analyzed the market situation, beefed up the adjustment to our
product mix by various means, and seized opportunities in the domestic and overseas markets. We also kept
The Abstract of the 2015 Annual Report of Changchai Company, Limited improving our equipment capability, increased the quality of our employees, strictly controlled our product quality and enhanced management. As a result, we were able to deliver a good business performance, which has further solidified our position in the diesel engine industry.
In 2015, we sold 907,700 units of various engines and machine sets and achieved sales revenues of RMB2,519,799,500, almost the same with last year, of which 776,300 units of single-cylinder engines were sold, down6.58% from last year; and 131,400 units of multi-cylinder engines were sold, up5.04% from last year, maintaining a good development momentum. We exported 95,800 units of various engines and machine sets by ourselves, generating an income of USD36.48 million. We achieved net profits of RMB71,102,800 attributable to the shareholders of the Company, up10.75% on a year-on-year basis.
In terms of single-cylinder engines, the Company launched multiple new products to meet the emission requirements and the market needs. It grasped the opportunity of product upgrade and de-stocking in the second half year, and accelerated market sales. It also transferred work focus, made market layout to the targeted direction, enhanced the sales force for big-bore single-cylinder engines, and firmed the market share.
Concerning multi-cylinder engines, the Company stepped up product innovation, benchmarking management and lean production. Making full use of its competitive products such as the 4G33 in the non-road field, it strengthened the promotion of its multi-cylinder engines for harvesters and wheel-tractors, and vigorously broke into new fields such as plant-protect machines and engineering machines, resulting in a year-on-year increase of non-road multi-cylinder engines. Meanwhile, a second assembly line for multi-cylinder engines was set up to meet the assembly requirements of various products.
As for overseas sales, the Company was under severe pressure from the overseas market. The Company stuck to relying on the support from factors as technology and brand, strengthened the maintenance and management for key markets and key clients, locked the target markets and target client, try hard efforts to improve the sales of advantaged traditional products, and accelerated the expansion of new markets.
As for market service, the Company laid emphasis on optimization and integration of web resources for market service, planned diversified forms of training, continuously optimized management of market service, accessory reserve, and accessory launch, met the demand from key clients and for key products in time, constantly improved service satisfaction, and obtained obvious efforts in market service and management.
To sum up, in 2015, by stepping up product development and input to technical innovation, the Company improved the overall competitiveness of its products and kept its leading position in medium and small horsepower diesel engines. Meanwhile, the constantly low prices of raw and auxiliary materials contributed to the result of saving internal costs and expenses, which ensured the sustainable and stable development of theCompany’s efficiency.
2. Significant changes in the main business in the reporting period
□ Yes√ No
3. Products contributing over10% of the main business revenue or profit
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Operating|Operating|Gross profit|
||||Gross profit||||
|Product|Operating revenue|Operating profit||revenue: YoY|profit: YoY|margin: YoY|
||||margin||||
|||||+/-%|+/-%|+/-%|
|Diesel|||||||
||2,495,248,411.83|400,879,413.03|16.07%|1.36%|7.77%|0.95%|
|engines|||||||

4. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes√ No
The Abstract of the 2015 Annual Report of Changchai Company, Limited 5. Significant YoY changes in the operating revenues, operating costs and net profits attributable to the common shareholders or their composition
□ Applicable√ Inapplicable
6. Listing suspension or termination
□ Applicable√ Inapplicable
VI. Issues related to the financial report
1. YoY changes in the accounting policy, accounting estimation and measurement methods
□ Applicable√ Inapplicable
No changes.
2. Retrospective restatements due to correction of significant accounting errors in the reporting period□ Applicable√ Inapplicable
No such cases.
3. YoY changes in the consolidation scope
□ Applicable√ Inapplicable
No changes.
4. Explanation by the Board of Directors and the Supervisory Committee concerning the “non-standardauditor’s report” issued by the CPAs firm for the reporting period
□ Applicable√ Inapplicable