Report for the Third Quarter of 2014 of Changchai Company, Limited Short form of the Stock: Suchangchai A, Suchangchai B Stock Code: 000570, 200570 Notice Number: 2014-018 CHANGCHAI COMPANY, LIMITED
THE THIRD QUARTERLY REPORT 2014
Section I. Important Reminders, Contents& Definition
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Changchai Company, Limited (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
Mr. Xue Guojun, company principal, Mr. He Jianguang, chief of the accounting work, and Mr. Jiang He, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Statements enclosed in this report are factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.Section II. Financial Highlights& Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error?
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||30 Sept. 2014||31 Dec. 2013||Increase/decrease (%)||
|Total assets (RMB Yuan)|3,061,092,052.98||3,042,349,320.63||0.62%||
|Net assets attributable to|1,891,680,741.60||1,809,577,062.45||||
|shareholders of the Company|||||4.54%||
|(RMB Yuan)|||||||
|||YoY increase/decrease||||YoY increase/decrease|
||Jul.-Sept. 2014|||Jan.-Sept. 2014|||
|||(%)||||(%)|
|Operating revenues (RMB Yuan)|596,251,102.70|-15.29%||1,936,127,304.42||-15.88%|
|Net profit attributable to|16,740,470.13|||51,043,900.62|||
|shareholders of the Company||-1.79%||||-10.31%|
|(RMB Yuan)|||||||
|Net profit attributable to|||||||
|shareholders of the Company after|15,531,456.19|-5.26%||49,051,143.62||-13.32%|
|extraordinary gains and losses|||||||
|(RMB Yuan)|||||||

Report for the Third Quarter of 2014 of Changchai Company, Limited
||||||
|-|-|-|-|-|
|Net cash flows from operating|--|--|-76,182,458.65|——|
|activities (RMB Yuan)|||||
|Basic EPS (RMB Yuan/share)|0.03|0.00%|0.09|-10.00%|
|Diluted EPS (RMB Yuan/share)|0.03|0.00%|0.09|-10.00%|
|Weighted average ROE (%)|0.91%|-0.03%|2.76%|-0.36%|

 Items and amounts of extraordinary gains and losses
√Applicable□Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount as of Jan.-Sept. 2014|Note|
|Gains/losses on the disposal of non-current assets (including the|||
||253,982.48||
|offset part of asset impairment provisions)|||
|Government grants recognized in the current period, except for|||
|those acquired in the ordinary course of business or granted at|||
||5,708,500.00||
|certain quotas or amounts according to the country’s unified|||
|standards|||
|Gains and losses on change in fair value from tradable financial|||
|assets and tradable financial liabilities, as well as investment|||
|income from disposal of tradable financial assets and tradable|||
||1,392,877.46||
|financial liabilities and financial assets available for sales, except|||
|for effective hedging related with normal businesses of the|||
|Company|||
|Other non-operating income and expenses than the above|-4,707,667.45||
|Less: Income tax effects|646,668.48||
|Minority interests effects (after tax)|8,267.01||
|Total|1,992,757.00|--|

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable√ Inapplicable
No such cases during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders at the period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end
Unit: share
|||
|-|-|
|Total number of common shareholders at the||
||67,854|
|period-end||

Report for the Third Quarter of 2014 of Changchai Company, Limited
|||||||||
|-|-|-|-|-|-|-|-|
|Shareholdings of the top ten common shareholders||||||||
|||||Number of||Pledged or frozen shares||
||Nature of|Shareholding|Number of the|||||
|Name of shareholder||||restricted shares||Status of|Number of|
||shareholder|percentage (%)|shares held|||||
|||||held||shares|shares|
|State-owned Assets Supervisionand Administration Commissionof Changzhou Municipal People’sGovernment|On behalf of theState|30.02%|168,497,736|0||||
|BNP PARIBAS WEALTHMANAGEMENT HONG KONGBRANCH|Foreigncorporation|2.03%|11,399,417|0||||
|ING ASIA PRIVATE BANKLIMITED|Foreigncorporation|0.80%|4,489,901|0||||
|BCOH－Nongyin Huili IndustryGrowth Equity SecuritiesInvestment Fund|Other|0.61%|3,399,661|0||||
|Warburg Trust Co., Ltd.－ShijieHaoyu No. 9 Assembled FundsTrust|Other|0.55%|3,085,898|0||||
|Jiang Xuezhen|Domesticindividual|0.46%|2,590,000|0||||
|Southwest Securities －CCB－Southwest Securities Everest No.1 Assembled Assets ManagementPlan|Other|0.43%|2,434,915|0||||
|Cha Genlou|Domesticindividual|0.36%|2,004,884|0||||
|Zhang Gengdi|Domesticindividual|0.32%|1,790,315|0||||
|Warburg Trust Co., Ltd.－ShijieHaoyu No.21 Assembled FundsTrust|Other|0.29%|1,630,643|0||||
|Shareholdings of the top ten non-restricted common shareholders||||||||
|||Number of non-restricted common|||Type of shares|||
|Name of shareholder||||||||
|||shares held at the period-end|||Type||Number|
|State-owned Assets Supervision and AdministrationCommission of Changzhou Municipal People’sGovernment||168,497,736||||||
||||||RMB ordinary share||168,497,736|
|BNP PARIBAS WEALTH MANAGEMENT||11,399,417|||Domestically listed foreign||11,399,417|

Report for the Third Quarter of 2014 of Changchai Company, Limited
|||||
|-|-|-|-|
|HONG KONG BRANCH||share||
|ING ASIA PRIVATE BANK LIMITED|4,489,901|Domestically listed foreign||
||||4,489,901|
|||share||
|BCOH－Nongyin Huili Industry Growth EquitySecurities Investment Fund|3,399,661|||
|||RMB ordinary share|3,399,661|
|Warburg Trust Co., Ltd.－Shijie Haoyu No. 9Assembled Funds Trust|3,085,898|||
|||RMB ordinary share|3,085,898|
|Jiang Xuezhen|2,590,000|RMB ordinary share|2,590,000|
|Southwest Securities －CCB－SouthwestSecurities Everest No. 1 Assembled AssetsManagement Plan|2,434,915|||
|||RMB ordinary share|2,434,915|
|Cha Genlou|2,004,884|RMB ordinary share|2,004,884|
|Zhang Gengdi|1,790,315|RMB ordinary share|1,790,315|
|Warburg Trust Co., Ltd.－Shijie Haoyu No.21Assembled Funds Trust|1,630,643|||
|||RMB ordinary share|1,630,643|
||It’s unknown whether there was any associated relationship among other|||
|Explanation on associated relationship or persons||||
||shareholders of the top ten shareholders, or whether there is any|||
|acting in concert among the above-mentioned||||
||action-in-concert among them regarding to Administrative Measures on|||
|shareholders||||
||Changes in Holdings.|||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed buy-back in the reporting period?
□ Yes√ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the period-end
□ Applicable√ Inapplicable
Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Inapplicable
(1) Monetary funds at the period-end decreased by RMB 213.3073 million from the amount at the year-beginning,
a decrease of30.99%, mainly because the payments collected from customers decreased.
(2) Accounts receivable at the period-end increased by RMB 260.3269 million from the amount at the
year-beginning, an increase of82.05%, mainly because we reinforced sales promotion and expanded sale on credit
Report for the Third Quarter of 2014 of Changchai Company, Limited within a controllable scope.
(3) Prepayments at the period-end decreased by RMB 5.5043 million from the amount at the year-beginning, a decrease of37.55%, mainly because we reduced our payments to suppliers to control the stock.
(4) Other receivables at the period-end increased by RMB 15.1804 million from the amount at the year-beginning, an increase of119.31%, mainly because of the money on call from subsidiary Housheng Investment to Xuzhou East China Foundry General Factory, etc.
(5) Construction in progress at the period-end increased by RMB 37.2757 million from the amount at the year-beginning, an increase of47.66%, mainly because the investments in the casting workshop alteration project, etc. increased.
(6) Short-term borrowings at the period-end decreased by RMB 10 million from the amount at the year-beginning, an increase of33.33%, mainly because subsidiary Changchai Wanzhou repaid borrowings.
(7) Payroll payable at the period-end decreased by RMB 31.6439 million from the amount at the year-beginning, a decrease of55.40%, mainly because the salary and bonus provisions made in the last period were partially paid in the current period.
(8) Taxes and fares payable at the period-end increased by RMB 16.1164 million from the amount at the year-beginning, an increase of68.00%, mainly because the stock of the Company decreased and the VAT input tax decreased accordingly.
II. Progress and influence of significant events, as well as the analysis and explanation on solutions
□Applicable√ Inapplicable
III. Commitments made by the Company or shareholders holding over5% of theCompany’s shares in the reporting period or such commitments carried down into the reporting period□ Applicable√ Inapplicable
No such commitments in the reporting period.
IV. Predict the 2014 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the year to the end of the next reporting period compared with the same period of the last year according to prediction, as well as explanations on the reasons
□Applicable√Inapplicable
V. Securities investment
□Applicable√Inapplicable
The Company did not invest in any securities in the reporting period.
Shareholdings in other listed companies
√Applicable□Inapplicable
Report for the Third Quarter of 2014 of Changchai Company, Limited At the end of the reporting period, we held 72.25 million “Foton Motor” shares and 50,000 “Ninghu Expressway” shares measured as available-for-sale financial assets.
VI. Investments in derivatives
□Applicable√Inapplicable
The Company did not invest in any derivative in the reporting period.
VII. Researches, visits and interviews received in the reporting period
√Applicable□Inapplicable
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|-|-|-|-|-|-|
||||||Main discussion and|
|Time|Place|Way of reception|Visitor type|Visitor|materials provided by the|
||||||Company|
||The Shenzhen|||||
||||||The impact of reform of|
||Stock Exchange|||Individual||
|7 Jan. 2014||Other|Individual||state-owned assets on the|
||Interaction|||investor||
||||||Company's future|
||Platform|||||
||||||Operating situation and|
|||Telephone||Individual||
|18 Apr. 2014|The Company||Individual||future development of the|
|||communication||investor||
||||||Company|
||||||Operating situation and|
|||Telephone||Individual||
|28 Apr. 2014|The Company||Individual||future development of the|
|||communication||investor||
||||||Company|
||The Shenzhen|||||
||||||Operating situation and|
||Stock Exchange|||Individual||
|11 Jun. 2014||Other|Individual||future development of the|
||Interaction|||investor||
||||||Company|
||Platform|||||
||||||Operating situation and|
|||Telephone||Individual||
|23 Jun. 2014|The Company||Individual||future development of the|
|||communication||investor||
||||||Company|
||The Interaction|||||
||||||Storage progress of the|
||Easy Platform of|||Individual||
|1 Jul. 2014||Other|Individual||Company’s single-cylinder|
||Shenzhen Stock|||investor||
||||||engine base|
||Exchange|||||
||The Interaction|||||
||||||The Company’s|
||Easy Platform of|||Individual||
|10 Jul. 2014||Other|Individual||equity-holdings in other|
||Shenzhen Stock|||investor||
||||||companies|
||Exchange|||||
||The Interaction||||Particulars about|
|||||Individual||
|11 Jul. 2014|Easy Platform of|Other|Individual||wholly-funded subsidiary|
|||||investor||
||Shenzhen Stock||||Housheng Investment|

Report for the Third Quarter of 2014 of Changchai Company, Limited
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|-|-|-|-|-|-|
||Exchange|||||
||The Interaction|||||
||Easy Platform of|||Individual||
|11 Aug. 2014||Other|Individual||Future development plan|
||Shenzhen Stock|||investor||
||Exchange|||||
||The Interaction|||||
||Easy Platform of|||Individual||
|13 Aug. 2014||Other|Individual||Future development plan|
||Shenzhen Stock|||investor||
||Exchange|||||
||The Interaction|||||
||Easy Platform of|||Individual||
|15 Aug. 2014||Other|Individual||Operating status|
||Shenzhen Stock|||investor||
||Exchange|||||
||||||Influence of the reform of|
||||||the State-owned Assets|
||The Interaction|||||
||||||Supervision and|
||Easy Platform of|||Individual||
|24 Aug. 2014||Other|Individual||Administration|
||Shenzhen Stock|||investor||
||||||Commission of Jiangsu|
||Exchange|||||
||||||Provincial Government on|
||||||the Company|
||The Interaction|||||
||Easy Platform of|||Individual|Human resources of the|
|9 Sept. 2014||Other|Individual|||
||Shenzhen Stock|||investor|Company|
||Exchange|||||

VIII. Influence of the newly promulgated or amended accounting standards on our consolidated financial statements
√ Applicable□ Inapplicable
According to the amended<Accounting Standards No. 30 for BusinessEnterprises—Financial StatementPreparation>, the other comprehensive incomes and the foreign-currency statement translation differences formerly recorded under the capital reserve were restated under the “other comprehensive incomes” item. And the year-beginning data were restated adopting the retrospective adjustment method, with details as follows:
||||
|-|-|-|
|31 Dec. 2013|||
|Capital reserve（+/-）|Other comprehensiveincomes（+/-）|Foreign-currencystatement translationdifference（+/-）|
|-277,847,575.00|277,780,844.33|66,730.67|