ChangchaiCompany,Limited FirstQuarterReport2018 Changchai Company, Limited
The Report for the First Quarter of 2018 April 27, 2018
ChangchaiCompany,Limited FirstQuarterReport2018 Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors, Supervisors and senior management of Changchai Company, Limited (inclusive of its consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissionsin this Report.
AlltheCompany’s Directors have attended the Board meeting forthe review ofthis Report. Shi Xinkun, theCompany’s legal representative, Zhang Xin, theCompany’s General Manager, and Jiang He, head of theCompany’s financial department (equivalent to financial manager) hereby guarantee that theFinancial Statements carried inthis Report are factual, accurate and complete. This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between thetwo versions, theChineseversion shall prevail.
ChangchaiCompany,Limited FirstQuarterReport2018 Part II Key Corporate Information
I KeyFinancialInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Yes√No
|||||
|-|-|-|-|
||January-March2018|January-March2017|Change|
|Salesrevenue(RMB)|593,008,785.46|723,164,530.66|-18.00%|
|Net income attributable to shareholders of thelistedcompany(RMB)|11,343,577.44|34,991,536.70|-67.58%|
|Net income attributable to shareholders of thelisted company before nonrecurring gains andlosses(RMB)|11,141,982.06|14,440,682.83|-22.84%|
|Netcashflowsfromoperatingactivities(RMB)|-73,259,277.76|-52,599,067.83|-|
|Basicearningspershare(RMB/share)|0.02|0.06|-66.67%|
|Dilutedearningspershare(RMB/share)|0.02|0.06|-66.67%|
|Weightedaveragereturnonequity(%)|0.51%|1.48%|-0.97%|
||March31,2018|December31,2017|Change|
|Totalassets(RMB)|3,703,879,135.15|3,722,905,285.05|-0.51%|
|Equity attributable to shareholders of the listedcompany(RMB)|2,221,644,110.30|2,246,896,857.86|-1.12%|

Nonrecurringgainsandlosses:
√Applicable□Notapplicable
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|Note|
|Gains and losses on disposal of non-current assets (inclusive of offsetallowanceforassetimpairments)|122,640.78||
|Gains and losses on changes in fair value of trading financial assets andliabilities & investmentincome from disposalof trading financialassets andliabilities and available-for-sale financial assets (exclusive of effectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness)|64,096.56||
|Othergainsandlossesthatmeetdefinitionofnonrecurringgain/loss|27,217.56||
|Less:Incometaxeffects|12,359.52||
|Total|201,595.38|--|

 Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Nonrecurring Gains and Losses, or reclassifies any nonrecurring gain/loss item listed in the said
explanatoryannouncementasarecurringgain/loss:
□Applicable√Notapplicable
ChangchaiCompany,Limited FirstQuarterReport2018 NosuchcasesfortheReportingPeriod.
II Total Numberof Shareholders andTop10Shareholders’Holdingsat Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as HoldingsofTop10Shareholders
Unit:share
|||||||||
|-|-|-|-|-|-|-|-|
|Common shareholders atperiod-end|50,915||Preferred shareholderswith resumed votingrightsatperiod-end(ifany)|||0||
|Top10shareholders||||||||
|Nameofshareholder|Natureofshareholder||Shareholdingpercentageatperiod-end(%)|Shares|Restrictedshares|Pledgedorfrozenshares||
|||||||Status|Shares|
|State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment|State-ownedjuridicalperson||30.43%|170,845,236|0|||
|KGIAsiaLimited|Foreignjuridicalperson||0.57%|3,189,845|0|||
|ZhangRuirong|Domesticnaturalperson||0.32%|1,776,800|0|||
|WanPeizhong|Domesticnaturalperson||0.29%|1,645,800|0|||
|HuangGuoliang|Domesticnaturalperson||0.27%|1,528,891|0|||
|HuWenyong|Domesticnaturalperson||0.27%|1,499,766|0|||
|Vanguard Total InternationalStockIndexFund|Foreignjuridicalperson||0.25%|1,382,093|0|||
|LiangNianyou|Domesticnaturalperson||0.24%|1,339,452|0|||
|LiSuinan|Domesticnaturalperson||0.24%|1,338,700|0|||
|XiongShunbao|Domesticnaturalperson||0.23%|1,273,051|0|||
|Top10non-restrictedshareholders||||||||
|Nameofshareholder||Non-restrictedsharesheldatperiod-end||Typeofshares||||
|||||Type||Shares||
|State-ownedAssetsSupervisionandAdministrationCommissionofChangzhouMunicipalPeople’sGovernment||170,845,236||RMBcommonstock||170,845,236||

ChangchaiCompany,Limited FirstQuarterReport2018
|||||
|-|-|-|-|
|KGIAsiaLimited|3,189,845|Domestically listed stockforforeigninvestors|3,189,845|
|ZhangRuirong|1,776,800|RMBcommonstock|1,776,800|
|WanPeizhong|1,645,800|RMBcommonstock|1,645,800|
|HuangGuoliang|1,528,891|Domestically listed stockforforeigninvestors|1,528,891|
|HuWenyong|1,499,766|Domestically listed stockforforeigninvestors|1,499,766|
|Vanguard Total International StockIndexFund|1,382,093|Domestically listed stockforforeigninvestors|1,382,093|
|LiangNianyou|1,339,452|RMBcommonstock|1,339,452|
|LiSuinan|1,338,700|Domestically listed stockforforeigninvestors|1,338,700|
|XiongShunbao|1,273,051|RMBcommonstock|1,273,051|
|Related or acting-in-concert partiesamongshareholdersabove|It is unknown whether there is among the top 10 tradable shareholders andthe top 10 non-restrictedly tradable shareholders any related parties oracting-in-concert parties as defined in the Administrative Measures forInformationRegardingShareholdingAlteration.|||
|Shareholders conducting securitiesmargintrading(ifany)|TheshareholderXiongShunbaoholds1,273,051sharesintheCompanythroughanaccountofcollateralsecuritiesformargintradinginGuolianSecuritiesCo.,Ltd,accountingfor0.23%.|||

Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yea√No
NosuchcasesintheReportingPeriod.
2.NumberofPreferredShareholdersandShareholdingsofTop10ofThem
□Applicable√Notapplicable
Changchai Company, Limited First Quarter Report 2018 Part III Significant Events
I Changes inSelected FinancialStatement Items and Explanationofwhy
√Applicable□Notapplicable
1. Accounts receivable rose by RMB280,595,318.57, or71.58%, as of March 31, 2018 compared to December 31, 2017, primarily because the Company properly allowedcustomers’ buying on credit for more marketsinQ12018andmulti-cylinderdieselenginecustomersareusuallygivenlongerpaymentdays.
2. Prepayments rose by RMB8,647,269.62, or104.87%, as of March 31, 2018 compared to December 31, 2017, primarily becausethe Company properly increased its prepayments to suppliers to ensure the supplyof raw materialsandcomponents.
3.Other receivables were increased by RMB18,512,464.39, or319.46%, mainly due to the temporary borrowingofsubsidiary,ChangzhouHorizonInvestmentCompany,totheXuzhouHuaDongFoundry.
4. Finance costs went down by RMB4,583,391.46, during Q1 2018 compared to Q1 2017, primarily driven bythechangesinnetforeignexchangegainsandlossesresultedfromexchangeratefluctuationsinQ12018. 5. Non-operating income decreased by RMB19,969,994.21,or92.26%, compared with the same period last year,mainly due to the fact that there was no discount for the equity purchase of subsidiary companies compared withthesameperiodlastyear.
6.Non-operating expense went down by RMB2,123,588.54, or58.21%, during Q1 2018 compared to Q1 2017,primarilydrivenbyayear-over-yeardecreaseinthelossondisposalofdefectiveinventories.
7. Net income went down by RMB23,727,160.85, or67.28%, during Q1 2018 compared to Q1 2017, primarily because an equity acquisition was concluded at a price lower than the appraised price, generating a non-recurringgain,inQ12017andcostsincreasedinQ12018duetoweakdemandfordieselenginesandstricter emissionregulations.
8. Net cash flows from operating activities decreased by RMB20,660,209.93 from the same period of last yearmainlybecauseoftheincreasedaccountsreceivable.
9. Net cash flows from investing activities went down by RMB29,598,627.43, during Q1 2018 compared to Q12017,primarilybecauseQ12018sawadecreaseinfixed-assetsconstruction.
II Progress, InfluenceandSolutions Associated withSignificant Events
□Applicable√Notapplicable
III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time duringReporting Period
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
Changchai Company, Limited First Quarter Report 2018 IVOperating Result Forecast forJanuary-June2018
Warningofaforecastlossonoraforecastsignificantyear-over-year change innetincomefor January-June2018, aswellasexplanationofwhy:
□Applicable√Notapplicable
V Securities Investments
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
VI Investments inDerivative FinancialInstruments
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. duringReporting Period
√Applicable□Notapplicable
|||||
|-|-|-|-|
|Dateofvisit|Wayofvisit|Typeofvisitor|About|
|January3,2018|Other|Individual|TheCompany’scooperativepurposewithforeigncompanies|
|January18,2018|Other|Individual|Cooperationwithscientificresearchorganizationsandinstitutionsofhighereducation|
|January29,2018|Other|Individual|DisclosuretimeoftheCompany’soperatingresultforecast|
|March13,2018|Other|Individual|Mixedownershipreformofstate-ownedenterprises|
|March13,2018|Other|Individual|DevelopmentinSoutheastAsianmarket|
|March31,2018|Other|Individual|CooperationwithJiangsuWorld|
|March31,2018|Other|Individual|ManagementoftheCompany’smarketvalue|
|March31,2018|Other|Individual|SituationoftheCompany’sreform|

VIII Irregularities in ProvisionofGuarantees forExternal Parties
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
IX Occupation of theCompany’s Money by Its Controlling Shareholder or Related Parties forNon-Operating Purposes
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
Changchai Company, Limited First Quarter Report 2018 Part IV Financial Statements
I FinancialStatements
1.ConsolidatedBalanceSheet
PreparedbyChangchaiCompany,Limited
March31,2018
Unit:RMB
||||
|-|-|-|
|Item|March31,2018|December31,2017|
|Currentassets:|||
|Monetaryassets|366,513,921.78|430,305,367.71|
|Settlementreserve|||
|Interbankloansgranted|||
|Financialassetsatfairvaluethroughprofitorloss|||
|Derivativefinancialassets|||
|Notesreceivable|621,401,634.94|716,404,345.57|
|Accountsreceivable|672,606,272.12|392,010,953.55|
|Prepayments|36,428,277.39|17,781,007.77|
|Premiumsreceivable|||
|Reinsurancereceivables|||
|Receivablereinsurancecontractreserve|||
|Interestreceivable|||
|Dividendsreceivable|||
|Otherreceivables|24,307,435.61|5,794,971.22|
|Financialassetspurchasedunderresaleagreements|||
|Inventories|418,465,150.90|508,246,807.48|
|Assetsclassifiedasheldforsale|||
|Currentportionofnon-currentassets|||
|Othercurrentassets|33,187,794.91|42,540,184.05|
|Totalcurrentassets|2,172,910,487.65|2,113,083,637.35|
|Non-currentassets:|||
|Loansandadvancestocustomers|||
|Available-for-salefinancialassets|750,468,139.04|793,522,639.04|
|Held-to-maturityinvestments|||
|Long-termreceivables|||
|Long-termequityinvestments|||
|Investmentproperty|52,312,263.23|52,864,348.43|
|Property,plantandequipment|544,065,907.91|560,049,970.50|
|Constructioninprogress|81,018,450.18|94,581,989.06|

Changchai Company, Limited First Quarter Report 2018
||||
|-|-|-|
|Engineeringmaterials|||
|Proceedsfromdisposalofproperty,plantandequipment|||
|Productivelivingassets|||
|Oilandgasassets|||
|Intangibleassets|102,096,933.33|107,795,746.86|
|R&Dexpense|||
|Goodwill|||
|Long-termprepaidexpense|||
|Deferredincometaxassets|1,006,953.81|1,006,953.81|
|Othernon-currentassets|||
|Totalnon-currentassets|1,530,968,647.50|1,609,821,647.70|
|Totalassets|3,703,879,135.15|3,722,905,285.05|
|Currentliabilities:|||
|Short-termborrowings|26,700,000.00|24,900,000.00|
|Borrowingsfromcentralbank|||
|Customer deposits and deposits from banks and other financialinstitutions|||
|Interbankloansobtained|||
|Financialliabilitiesatfairvaluethroughprofitorloss|||
|Derivativefinancialliabilities|||
|Notespayable|444,178,000.00|347,070,500.00|
|Accountspayable|484,086,878.29|616,228,500.18|
|Advancesfromcustomers|46,546,444.25|40,153,984.91|
|Financialassetssoldunderrepurchaseagreements|||
|Handlingchargesandcommissionspayable|||
|Payrollpayable|44,310,431.42|51,247,112.66|
|Taxespayable|4,160,118.37|4,017,920.78|
|Interestpayable|||
|Dividendspayable|3,891,433.83|3,891,433.83|
|Otherpayables|237,449,902.13|192,094,243.08|
|Reinsurancepayables|||
|Insurancecontractreserve|||
|Payablesforactingtradingofsecurities|||
|Payablesforunderwritingofsecurities|||
|Liabilities directly associated with assets classified as held forsale|||
|Currentportionofnon-currentliabilities|||
|Othercurrentliabilities|2,798,865.66|2,028,937.59|
|Totalcurrentliabilities|1,294,122,073.95|1,281,632,633.03|
|Non-currentliabilities:|||
|Long-termborrowings|21,500,000.00|21,500,000.00|
|Bondspayable|||
|Including:Preferredshares|||

Changchai Company, Limited First Quarter Report 2018
||||
|-|-|-|
|Perpetualbonds|||
|Long-termpayables|||
|Long-termpayrollpayable|||
|Specificpayables|||
|Provisions|||
|Deferredincome|60,992,858.46|60,992,858.46|
|Deferredincometaxliabilities|85,951,604.39|92,409,779.39|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|168,444,462.85|174,902,637.85|
|Totalliabilities|1,462,566,536.80|1,456,535,270.88|
|Owners’equity:|||
|Sharecapital|561,374,326.00|561,374,326.00|
|Otherequityinstruments|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Capitalreserves|164,328,665.43|164,328,665.43|
|Less:Treasuryshares|||
|Othercomprehensiveincome|478,472,225.00|515,068,550.00|
|Specificreserve|13,289,059.21|13,289,059.21|
|Surplusreserves|313,705,210.16|313,705,210.16|
|Generalreserve|||
|Retainedearnings|690,474,624.50|679,131,047.06|
|TotalequityattributabletoownersofParentCompany|2,221,644,110.30|2,246,896,857.86|
|Non-controllinginterests|19,668,488.05|19,473,156.31|
|Totalowners’equity|2,241,312,598.35|2,266,370,014.17|
|Totalliabilitiesandowners’equity|3,703,879,135.15|3,722,905,285.05|

 Legalrepresentative:ShiXinkun TheCompany’sgeneralmanager:ZhangXin HeadoftheCompanyfinancialdepartment:JiangHe
Changchai Company, Limited First Quarter Report 2018 2.ParentCompanyBalanceSheet
Unit:RMB
||||
|-|-|-|
|Item|March31,2018|December31,2017|
|Currentassets:|||
|Monetaryassets|323,315,001.72|366,907,287.64|
|Financialassetsatfairvaluethroughprofitorloss|||
|Derivativefinancialassets|||
|Notesreceivable|618,351,634.94|711,474,345.57|
|Accountsreceivable|595,530,316.22|319,887,051.70|
|Prepayments|18,485,696.31|9,815,561.98|
|Interestreceivable|||
|Dividendsreceivable|||
|Otherreceivables|11,598,810.17|11,798,211.40|
|Inventories|290,105,961.33|376,814,388.82|
|Assetsclassifiedasheldforsale|||
|Currentportionofnon-currentassets|||
|Othercurrentassets|9,616,652.35|20,692,057.15|
|Totalcurrentassets|1,867,004,073.04|1,817,388,904.26|
|Non-currentassets:|||
|Available-for-salefinancialassets|742,783,000.00|785,837,500.00|
|Held-to-maturityinvestments|||
|Long-termreceivables|||
|Long-termequityinvestments|231,752,730.03|231,752,730.03|
|Investmentproperty|52,312,263.23|52,864,348.43|
|Property,plantandequipment|440,604,265.55|453,155,359.47|
|Constructioninprogress|80,677,650.18|93,681,793.26|
|Engineeringmaterials|||
|Proceedsfromdisposalofproperty,plantandequipment|||
|Productivelivingassets|||
|Oilandgasassets|||
|Intangibleassets|74,523,191.02|75,623,219.49|
|R&Dexpense|||
|Goodwill|||
|Long-termprepaidexpense|||
|Deferredincometaxassets|934,554.06|934,554.06|
|Othernon-currentassets|||
|Totalnon-currentassets|1,623,587,654.07|1,693,849,504.74|
|Totalassets|3,490,591,727.11|3,511,238,409.00|
|Currentliabilities:|||
|Short-termborrowings|||
|Financialliabilitiesatfairvaluethroughprofitorloss|||
|Derivativefinancialliabilities|||

Changchai Company, Limited First Quarter Report 2018
||||
|-|-|-|
|Notespayable|421,138,000.00|323,030,500.00|
|Accountspayable|431,385,259.65|560,214,489.22|
|Advancesfromcustomers|45,026,626.59|38,382,261.14|
|Payrollpayable|39,860,797.44|41,401,495.39|
|Taxespayable|1,021,050.66|1,373,036.64|
|Interestpayable|||
|Dividendspayable|3,243,179.97|3,243,179.97|
|Otherpayables|220,694,284.58|182,738,709.26|
|Liabilities directly associated with assets classified as held forsale|||
|Currentportionofnon-currentliabilities|||
|Othercurrentliabilities|||
|Totalcurrentliabilities|1,162,369,198.89|1,150,383,671.62|
|Non-currentliabilities:|||
|Long-termborrowings|19,500,000.00|19,500,000.00|
|Bondspayable|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Long-termpayables|||
|Long-termpayrollpayable|||
|Specificpayables|||
|Provisions|||
|Deferredincome|60,992,858.46|60,992,858.46|
|Deferredincometaxliabilities|84,436,275.00|90,894,450.00|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|164,929,133.46|171,387,308.46|
|Totalliabilities|1,327,298,332.35|1,321,770,980.08|
|Owners’equity:|||
|Sharecapital|561,374,326.00|561,374,326.00|
|Otherequityinstruments|||
|Including:Preferredshares|||
|Perpetualbonds|||
|Capitalreserves|183,071,147.70|183,071,147.70|
|Less:Treasuryshares|||
|Othercomprehensiveincome|478,472,225.00|515,068,550.00|
|Specificreserve|13,289,059.21|13,289,059.21|
|Surplusreserves|313,705,210.16|313,705,210.16|
|Retainedearnings|613,381,426.69|602,959,135.85|
|Totalowners’equity|2,163,293,394.76|2,189,467,428.92|
|Totalliabilitiesandowners’equity|3,490,591,727.11|3,511,238,409.00|

Changchai Company, Limited First Quarter Report 2018 3.ConsolidatedIncomeStatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Operatingrevenue|593,008,785.46|723,164,530.66|
|Including:Salesrevenue|593,008,785.46|723,164,530.66|
|Interestrevenue|||
|Premiumrevenue|||
|Handlingchargeandcommissionrevenue|||
|2.Costofoperatingrevenue|579,389,265.96|705,529,406.81|
|Including:Costofsales|514,583,143.24|638,873,185.41|
|Interestexpense|||
|Handlingchargeandcommissionexpense|||
|Surrenders|||
|Netclaimspaid|||
|Netamountprovidedasinsurancecontractreserve|||
|Expenditureonpolicydividends|||
|Reinsurancepremiumexpense|||
|Taxesandsurtaxes|2,841,402.82|2,438,458.01|
|Sellingexpense|27,010,594.06|26,191,359.28|
|Administrativeexpense|31,414,153.72|39,069,823.45|
|Financecosts|3,539,972.12|-1,043,419.34|
|Assetimpairmentlosses|||
|Add:Gainonchangesinfairvalue(“-”forloss)|||
|Investmentincome(“-”forloss)|64,096.56|2,215,049.22|
|Including: Share of profit or loss of joint ventures andassociates|||
|Foreignexchangegain(“-”forloss)|||
|Assetdisposalincome(“-”forloss)|||
|Otherincome|||
|3.Operatingincome(“-”forloss)|13,683,616.06|19,850,173.07|
|Add:Non-operatingrevenue|1,674,474.55|21,644,468.76|
|Less:Non-operatingexpense|1,524,616.21|3,648,204.75|
|4.Pretaxincome(“-”forloss)|13,833,474.40|37,846,437.08|
|Less:Incometaxexpense|2,294,565.22|2,580,367.05|
|5.Netincome(“-”fornetloss)|11,538,909.18|35,266,070.03|
|5.1Netincomefromcontinuingoperations(“-”fornetloss)|11,538,909.18|35,266,070.03|
|5.2Netincomefromdiscontinuedoperations(“-”fornetloss)|||
|AttributabletoownersofParentCompany|11,343,577.44|34,991,536.70|
|Attributabletonon-controllinginterests|195,331.74|274,533.33|
|6.Othercomprehensiveincome,netoftax|-36,596,325.00|34,093,500.00|
|AttributabletoownersofParentCompany|-36,596,325.00|34,093,500.00|
|6.1Itemsthatwillnotbereclassifiedtoprofitorloss|||

Changchai Company, Limited First Quarter Report 2018
||||
|-|-|-|
|6.1.1 Changes in net liabilities or assets caused byre-measurementsondefinedbenefitpensionschemes|||
|6.1.2 Share of other comprehensive income of investeesthatwillnotbereclassifiedtoprofitorlossunderequitymethod|||
|6.2 Items that may subsequently be reclassified to profit orloss|-36,596,325.00|34,093,500.00|
|6.2.1 Share of other comprehensive income of investeesthatwillbereclassifiedtoprofitorlossunderequitymethod|||
|6.2.2 Gains/Losses on changes in fair value ofavailable-for-salefinancialassets|-36,596,325.00|34,093,500.00|
|6.2.3 Gains/Losses arising from reclassification ofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|||
|6.2.4Effectivegains/lossesoncashflowhedges|||
|6.2.5 Differences arising from translation of foreigncurrency-denominatedfinancialstatements|||
|6.2.6Other|||
|Attributabletonon-controllinginterests|||
|7.Totalcomprehensiveincome|-25,057,415.82|69,359,570.03|
|AttributabletoownersofParentCompany|-25,252,747.56|69,085,036.70|
|Attributabletonon-controllinginterests|195,331.74|274,533.33|
|8.Earningspershare|||
|8.1Basicearningspershare|0.02|0.06|
|8.2Dilutedearningspershare|0.02|0.06|

 Legalrepresentative:ShiXinkun TheCompany’sgeneralmanager:ZhangXin HeadoftheCompanyfinancialdepartment:JiangHe
Changchai Company, Limited First Quarter Report 2018 4.ParentCompanyIncomeStatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Salesrevenue|546,106,384.32|671,067,381.57|
|Less:Costofsales|478,947,398.52|597,712,030.57|
|Taxesandsurtaxes|2,016,404.51|1,852,624.69|
|Sellingexpense|24,722,755.12|23,846,836.58|
|Administrativeexpense|26,313,858.28|34,336,123.95|
|Financecosts|1,660,143.55|-1,346,027.09|
|Assetimpairmentlosses|||
|Add:Gainonchangesinfairvalue(“-”forloss)|||
|Investmentincome(“-”forloss)|||
|Including: Share of profit or loss of joint ventures andassociates|||
|Assetdisposalincome(“-”forloss)|||
|Otherincome|||
|2.Operatingincome(“-”forloss)|12,445,824.34|14,665,792.87|
|Add:Non-operatingrevenue|1,339,652.51|468,401.99|
|Less:Non-operatingexpense|1,523,958.21|3,585,448.64|
|3.Pretaxincome(“-”forloss)|12,261,518.64|11,548,746.22|
|Less:Incometaxexpense|1,839,227.80|1,824,701.90|
|4.Netincome(“-”fornetloss)|10,422,290.84|9,724,044.32|
|4.1Netincomefromcontinuingoperations(“-”fornetloss)|10,422,290.84|9,724,044.32|
|4.2Netincomefromdiscontinuedoperations(“-”fornetloss)|||
|5.Othercomprehensiveincome,netoftax|-36,596,325.00|269,528,625.00|
|5.1Itemsthatwillnotbereclassifiedtoprofitorloss|||
|5.1.1 Changes in net liabilities or assets caused byre-measurementsondefinedbenefitpensionschemes|||
|5.1.2 Share of other comprehensive income of investees thatwillnotbereclassifiedintoprofitorlossunderequitymethod|||
|5.2Itemsthatmaysubsequentlybereclassifiedtoprofitorloss|-36,596,325.00|269,528,625.00|
|5.2.1 Share of other comprehensive income of investees thatwillbereclassifiedintoprofitorlossunderequitymethod|||
|5.2.2 Gains/Losses on changes in fair value ofavailable-for-salefinancialassets|-36,596,325.00|269,528,625.00|
|5.2.3 Gains/Losses arising from reclassification ofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|||
|5.2.4Effectivegains/lossesoncashflowhedges|||
|5.2.5 Differences arising from translation of foreigncurrency-denominatedfinancialstatements|||
|5.2.6Other|||
|6.Totalcomprehensiveincome|-26,174,034.16|279,252,669.32|

Changchai Company, Limited First Quarter Report 2018
||
|-|
|7.Earningspershare|
|7.1Basicearningspershare|
|7.2Dilutedearningspershare|

Changchai Company, Limited First Quarter Report 2018 5.ConsolidatedCashFlowStatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Cashgeneratedbyorusedinoperatingactivities:|||
|Proceedsfromsaleofcommoditiesandrenderingofservices|439,612,228.47|559,720,974.26|
|Net increase in customer deposits and deposits from banks andotherfinancialinstitutions|||
|Netincreaseinloansfromcentralbank|||
|Netincreaseinloansfromotherfinancialinstitutions|||
|Premiumsreceivedonoriginalinsurancecontracts|||
|Netproceedsfromreinsurance|||
|Netincreaseindepositsandinvestmentsofpolicyholders|||
|Net increase in proceeds from disposal of financial assets at fairvaluethroughprofitorloss|||
|Interest,handlingchargesandcommissionsreceived|||
|Netincreaseininterbankloansobtained|||
|Netincreaseinproceedsfromrepurchasetransactions|||
|Taxrebates|17,753,037.91|20,849,031.11|
|Cashgeneratedbyotheroperatingactivities|3,702,330.49|3,910,470.17|
|Subtotalofcashgeneratedbyoperatingactivities|461,067,596.87|584,480,475.54|
|Paymentsforcommoditiesandservices|406,939,946.87|499,393,990.54|
|Netincreaseinloansandadvancestocustomers|||
|Net increase in deposits in central bank and in interbank loansgranted|||
|Paymentsforclaimsonoriginalinsurancecontracts|||
|Interest,handlingchargesandcommissionspaid|||
|Policydividendspaid|||
|Cashpaidtoandforemployees|92,450,068.47|98,279,534.01|
|Taxespaid|9,951,419.10|13,750,299.06|
|Cashusedinotheroperatingactivities|24,985,440.19|25,655,719.76|
|Subtotalofcashusedinoperatingactivities|534,326,874.63|637,079,543.37|
|Netcashflowsfromoperatingactivities|-73,259,277.76|-52,599,067.83|
|2.Cashgeneratedbyorusedininvestingactivities:|||
|Proceedsfromdisinvestments|2,000,000.00||
|Investmentincome|64,096.56|107,098.26|
|Net proceeds from disposal of property, plant and equipment,intangibleassetsandotherlong-livedassets|198,255.47|457,913.44|
|Netproceedsfromdisposalofsubsidiariesorotherbusinessunits|||
|Cashgeneratedbyotherinvestingactivities|||
|Subtotalofcashgeneratedbyinvestingactivities|2,262,352.03|565,011.70|
|Payments for acquisition of property, plant and equipment,intangibleassetsandotherlong-livedassets|9,895,537.64|32,207,669.61|

Changchai Company, Limited First Quarter Report 2018
||||
|-|-|-|
|Paymentsforinvestments|4,265,444.20|3,000,000.00|
|Netincreaseinpledgedloansgranted|||
|Net payments for acquisition of subsidiaries and other businessunits||1,854,599.33|
|Cashusedinotherinvestingactivities|8,000,000.00|13,000,000.00|
|Subtotalofcashusedininvestingactivities|22,160,981.84|50,062,268.94|
|Netcashflowsfrominvestingactivities|-19,898,629.81|-49,497,257.24|
|3.Cashgeneratedbyorusedinfinancingactivities:|||
|Capitalcontributionsreceived|||
|Including: Capital contributions by non-controlling interests tosubsidiaries|||
|Increaseinborrowingsobtained|1,800,000.00||
|Netproceedsfromissuanceofbonds|||
|Cashgeneratedbyotherfinancingactivities|||
|Subtotalofcashgeneratedbyfinancingactivities|1,800,000.00||
|Repaymentofborrowings|||
|Paymentsforinterestanddividends|645,225.08|81,250.00|
|Including: Dividends paid by subsidiaries to non-controllinginterests|||
|Cashusedinotherfinancingactivities||4,497.87|
|Subtotalofcashusedinfinancingactivities|645,225.08|85,747.87|
|Netcashflowsfromfinancingactivities|1,154,774.92|-85,747.87|
|4. Effect of foreign exchange rate changes on cash and cashequivalents|||
|5.Netincreaseincashandcashequivalents|-92,003,132.65|-102,182,072.94|
|Add:Cashandcashequivalents,beginningoftheperiod|325,263,654.43|583,278,129.09|
|6.Cashandcashequivalents,endoftheperiod|233,260,521.78|481,096,056.15|

Changchai Company, Limited First Quarter Report 2018 6.ParentCompanyCashFlowStatement
Unit:RMB
||||
|-|-|-|
|Item|January-March2018|January-March2017|
|1.Cashgeneratedbyorusedinoperatingactivities:|||
|Proceedsfromsaleofcommoditiesandrenderingofservices|383,944,530.99|535,658,165.47|
|Taxrebates|14,412,296.14|17,491,266.11|
|Cashgeneratedbyotheroperatingactivities|2,985,456.36|3,339,265.22|
|Subtotalofcashgeneratedbyoperatingactivities|401,342,283.49|556,488,696.80|
|Paymentsforcommoditiesandservices|360,203,288.81|491,217,873.52|
|Cashpaidtoandforemployees|80,778,231.12|86,413,231.91|
|Taxespaid|6,738,039.59|10,628,148.30|
|Cashusedinotheroperatingactivities|20,149,380.94|21,879,334.47|
|Subtotalofcashusedinoperatingactivities|467,868,940.46|610,138,588.20|
|Netcashflowsfromoperatingactivities|-66,526,656.97|-53,649,891.40|
|2.Cashgeneratedbyorusedininvestingactivities:|||
|Proceedsfromdisinvestments|||
|Investmentincome|||
|Net proceeds from disposal of property, plant and equipment,intangibleassetsandotherlong-livedassets|16,700.00|62,913.44|
|Netproceedsfromdisposalofsubsidiariesorotherbusinessunits|||
|Cashgeneratedbyotherinvestingactivities|||
|Subtotalofcashgeneratedbyinvestingactivities|16,700.00|62,913.44|
|Payments for acquisition of property, plant and equipment, intangibleassetsandotherlong-livedassets|8,205,480.04|28,498,615.58|
|Paymentsforinvestments|||
|Netpaymentsforacquisitionofsubsidiariesandotherbusinessunits||23,794,779.68|
|Cashusedinotherinvestingactivities|||
|Subtotalofcashusedininvestingactivities|8,205,480.04|52,293,395.26|
|Netcashflowsfrominvestingactivities|-8,188,780.04|-52,230,481.82|
|3.Cashgeneratedbyorusedinfinancingactivities:|||
|Capitalcontributionsreceived|||
|Increaseinborrowingsobtained|||
|Netproceedsfromissuanceofbonds|||
|Cashgeneratedbyotherfinancingactivities|||
|Subtotalofcashgeneratedbyfinancingactivities|||
|Repaymentofborrowings|||
|Paymentsforinterestanddividends|375,425.98||
|Cashusedinotherfinancingactivities|||
|Sub-totalofcashusedinfinancingactivities|375,425.98||
|Netcashflowsfromfinancingactivities|-375,425.98||
|4.Effectofforeignexchangeratechangesoncashandcashequivalents|||

Changchai Company, Limited First Quarter Report 2018
||||
|-|-|-|
|5.Netincreaseincashandcashequivalents|-75,090,862.99|-105,880,373.22|
|Add:Cashandcashequivalents,beginningoftheperiod|272,064,464.71|558,159,090.01|
|6.Cashandcashequivalents,endoftheperiod|196,973,601.72|452,278,716.79|

 IIIndependentAuditor’s Report
IndicatebytickmarkwhethertheQ1financialstatementshavebeenauditedbyanindependentauditor.
□Yes√No
TheQ1financialstatementshavenotbeenauditedbysuchanauditor.