Stock code: 000570, 200570 Stock abbreviation: Su Changchai A, Su Changchai B Announcement No.: 2016-007 CHANGCHAI COMPANY, LIMITED
THE FIRST QUARTERLY REPORT FOR YEAR 2016
Section I Important Statements
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of Changchai Company, Limited (hereinafter referred to as “the Company”) warrant that the information carried in 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 have attended the board session for reviewing this report.
Xue Guojun, company principal, He Jianguang, chief of the accounting work, and 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 Results and Changes in Shareholders
I Financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2016|January-March 2015|+/-%|
|Operating revenues (RMB)|654,517,225.08|650,305,530.50|0.65%|
|Net profit attributable to shareholders|24,282,056.99|17,279,138.61||
||||40.53%|
|of the Company (RMB)||||
|Net profit attributable to shareholders||||
||24,946,954.15|15,137,500.97|64.80%|
|of the Company after exceptional profit||||
|and loss (RMB)||||
|Net operating cash flow (RMB)|-5,947,696.22|1,795,087.91|——|
|Basic earnings per share (RMB/share)|0.04|0.03|33.33%|
|Diluted earnings per share|0.04|0.03||
||||33.33%|
|(RMB/share)||||
|Weighted average return on equity (%)|1.22%|0.87%|0.35%|
||31 March 2016|31 December 2015|+/-%|
|Total assets (RMB)|3,197,334,506.97|3,232,406,102.20|-1.08%|
|Net assets attributable to shareholders|1,972,518,668.00|2,002,910,311.01||
||||-1.52%|
|of the Company (RMB)||||

Exceptional profit and loss
√ Applicable□ Inapplicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|Explanation|
|Gains/losses on the disposal of non-current assets|||
|(including the offset part of the asset impairment|198,012.66||
|provisions)|||
|Government grants recognized in the current period,|||
|except for those acquired in the ordinary course of|||
||153,000.00||
|business or granted at certain quotas or amounts|||
|according to the government’s unified standards|||
|Gains and losses on change in fair value from tradable|||
|financial assets and tradable financial liabilities, as well|||
||615,230.51||
|as investment income from disposal of tradable financial|||
|assets and tradable financial liabilities and financial|||

||||
|-|-|-|
|assets available for sales except for effective hedging|||
|related with normal businesses of the Company|||
|Non-operating income and expense other than the above|-1,679,028.98||
|Less: Income tax effects|-47,888.65||
|Total|-664,897.16|--|

Explain the reasons if the Company classifies an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss, or classifies any exceptional profit/loss item mentioned in the said explanatory announcement as recurrent profit/loss
□ Applicable√ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders at the period-end and shareholdings of top ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdings of top ten shareholders
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|||||Total number of preference||||
|Total number of common||||shareholders with resumed||||
|||54,693||||0||
|shareholders at the period-end||||voting rights at the period-end||||
|||||(if any)||||
|Shareholdings of top ten shareholders||||||||
|||||||Pledged or frozen||
||||Shareholding||Number of|||
|||||Number of||shares||
|Name of shareholder|Nature of shareholder||percentage||restricted shares|||
|||||shares held||Status of|Number|
||||(%)||held|||
|||||||shares|of shares|
|State-owned AssetsSupervision andAdministrationCommission ofChangzhou MunicipalPeople’s Government|On behalf of the State||30.43%|170,845,236||||
|Huang Lihou|Domestic individual||1.00%|5,600,000||||
|KGI Asia Limited|Overseas corporation||0.57%|3,224,845||||
|Zhou You|Domestic individual||0.56%|3,137,200||||
|BNP Paribas WealthManagement HongKong Branch|Overseas corporation||0.55%|3,099,873||||
|Xu Xingying|Domestic individual||0.52%|2,944,700||||

||||||||
|-|-|-|-|-|-|-|
|Wu Xiaoping|Domestic individual||0.49%|2,775,300|||
|Sun Haiyan|Domestic individual||0.47%|2,644,897|||
|Wang Jixiang|Domestic individual||0.46%|2,555,200|||
|Bank ofCommunications Co.,Ltd.-ChangxinQuantified CorePioneer MixedInvestment Fund|Other||0.40%|2,271,889|||
|Shareholdings of top ten non-restricted shareholders|||||||
|||Number of non-restricted|||Variety of shares||
|Name of shareholder|||||||
|||shares held|||Variety|Number|
|State-owned Assets Supervision andAdministration Commission of ChangzhouMunicipal People’s Government||170,845,236|||||
||||||RMB ordinary shares|170,845,236|
|Huang Lihou||5,600,000|||RMB ordinary shares|5,600,000|
|KGI Asia Limited||3,224,845|||Domestically listed||
|||||||3,224,845|
||||||foreign shares||
|Zhou You||3,137,200|||RMB ordinary shares|3,137,200|
|BNP Paribas Wealth Management HongKong Branch||3,099,873|||Domestically listed||
|||||||3,099,873|
||||||foreign shares||
|Xu Xingying||2,944,700|||RMB ordinary shares|2,944,700|
|Wu Xiaoping||2,775,300|||RMB ordinary shares|2,775,300|
|Sun Haiyan||2,644,897|||RMB ordinary shares|2,644,897|
|Wang Jixiang||2,555,200|||RMB ordinary shares|2,555,200|
|Bank of Communications Co., Ltd.-Changxin Quantified Core Pioneer MixedInvestment Fund||2,271,889|||||
||||||RMB ordinary shares|2,271,889|
|||It is unknown whether there was any associated relationship among|||||
|||the top ten tradable shareholders and among the top ten shareholders|||||
|Related or acting-in-concert parties among|||||||
|||not subject to trading moratorium, or whether they are persons acting|||||
|the above shareholders|||||||
|||in concert as described by Measures for the Administrative of|||||
|||Disclosure of Shareholder Equity Changes.|||||
|||Shareholder Huang Lihou held a total of 5,600,000 shares in the|||||
|||Company, representing a stake of 1.00%, through a common|||||
|Top ten common shareholders conducting||securities account and a client account of collateral securities for|||||
|securities margin trading (if any)||margin trading. Shareholder Sun Haiyan held 2,644,897 shares in the|||||
|||Company (a stake of 0.47%) through a client account of collateral|||||
|||securities for margin trading in China Galaxy Securities Co. , Ltd.|||||

Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any promissory repo during the Reporting Period?
□ Yea√ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top ten of them
□ Applicable√ Not applicable
Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting Period, as well as reasons for such changes
√ Applicable□ Not applicable
1. Accounts receivable increased108.91% from the opening amount mainly because the Company properly allowedcustomers’ buying on credit according to its relevant agreements and marketing plans to expand its market space, and the percentage of multi-cylinder engines in the total sales increased (longer payment days for these customers for they mostly procure our multi-cylinder engines as a component).
2. Other accounts receivable increased220.69% from the opening amount mainly because of the temporary lendings from subsidiary Housheng Investment to Xuzhou East China Casting General Factory, etc.
3. Other current assets decreased53.72% from the opening amount mainly because some bank financial produces became due and the overpaid VAT decreased.
4. Payroll payable decreased38.70% from the opening amount mainly because some of the salary and bonus provisions made last year were paid in the Reporting Period.
5. Taxes and fares payable increased58.08% from the opening amount mainly because the inventories of the Company (without subsidiaries) decreased and the input VAT decreased accordingly.
6. Net profit attributable to owners of the Company increased40.53% from the same period of last year mainly because along with its product restructuring, the percentage of multi-cylinder engines in the total sales of the Company increased with its self-made components increasing accordingly, cost control produced remarkable results and the gross profit increased.
II Progress of significant events and analysis& explanations on their influence and solutions
□ Applicable√ Not applicable
III Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors, senior management or other related parties fulfilled in the Reporting Period or ongoing at the period-end
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Date of|||
||Commitmen|Type of|||Term of||
|Commitment|||Contents|commitment||Fulfillment|
||t maker|commitment|||commitment||
|||||making|||
|Commitments made in|||||||
|share reform|||||||
|Commitments made in|||||||
|acquisition documents|||||||
|or shareholding|||||||
|alteration documents|||||||
|Commitments made in|||||||
|time of asset|||||||
|restructuring|||||||
|Commitments made in|||||||
|time of IPO or|||||||
|refinancing|||||||
|Commitments|||||||
|concerning stock|||||||
|ownership incentive|||||||
||||Under the conditions of in||||
||||future three years||||
||||(2014-2016) the||||
||||attributable profit (the||||
||||remaining profits after the||||
||||losses have been made up||||
||||and common reserves||||
||||have been drawn) of||||
||||shareholders’ reward plan||||
||||in the year or half year is||||
||Changchai||positive, and the cash|||The|
|Other commitments|||||||
||Company,|Bonus|flow is sufficient, the cash|||commitmen|
|made to minority||||2014-05-14|Y2014-2016||
||Limited|commitment|dividends had no|||t was under|
|shareholders|||||||
||||influence to the follow-up|||progress.|
||||continuously operation,||||
||||the profit dividends in||||
||||cash shall no lower than||||
||||the 10% of attributable||||
||||profit realized by the||||
||||Company and in any three||||
||||continuous accounting||||
||||years the accumulative||||
||||profit dividends in cash||||
||||shall no less than 30% of||||

||||
|-|-|-|
|||the average annual|
|||attributable profits|
|||realized in three years.|
|Executed on time|Yes||

IV Operating result forecast for January-June 2016
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-beginning to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□Applicable√ Not applicable
V Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in derivative financial instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc.
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|Index to main inquiry information|
|5 Jan. 2016|Other|Individual|Stock price trend of the Company|
|6 Jan. 2016|Other|Individual|Stock price trend of the Company|
|6 Jan. 2016|Other|Individual|Future development planning of the Company|
|8 Jan. 2016|Other|Individual|Future products planning of the Company|
|11 Jan. 2016|Other|Individual|Stock price trend of the Company|
|20 Jan. 2016|Other|Individual|Situation of the export business of the Company|
|21 Jan. 2016|Other|Individual|Situation of the export business of the Company|
||||Situation of the reform of the state-owned|
|11 Feb. 2016|Other|Individual||
||||enterprises of the Company|
|23 Feb. 2016|Other|Individual|Number of the shareholders of the Company|
||||Situation of the joint stock company - Tsinghua|
|24 Feb. 2016|Other|Individual||
||||Industrial Co., Ltd. of the Company|
|10 Mar. 2016|Other|Individual|Number of the shareholders of the Company|

|||||
|-|-|-|-|
||||Situation of the held financial assets of the|
|28 Mar. 2016|Other|Individual||
||||Company|

VIII Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s funds by the controlling shareholder or its related parties for non-operating purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.