Changchai Company, Limited Interim Report 2018 (Summary) Stock Code: 000570, 200570 Stock Name: Changchai-A, Changchai-B Announcement No. 2018-023 CHANGCHAI COMPANY, LIMITED
INTERIM REPORT 2018 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2018 Interim Report of Changchai Company, Limited (together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full understanding of theCompany’s operating results, financial condition and future development plans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the “CSRC”).
Independentauditor’s modified opinion:
□ Applicable√ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable√ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable√ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.
Part II Key Corporate Information
1. Stock Profile
|||||||
|-|-|-|-|-|-|
|Stock name|Changchai A, Changchai B||Stock code|000570, 200570||
|Stock exchange for stock listing||Shenzhen Stock Exchange||||
|Contact information||Board Secretary|||Securities Representative|
|Name|He Jianjiang|||||
||123 Huaide Middle Road, Changzhou,Jiangsu, China|||||
|Office address||||||
|Tel.|（86）519-68683155|||||
|E-mail address|cchjj@changchai.com|||||

2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
Changchai Company, Limited Interim Report 2018 (Summary)
|||||||
|-|-|-|-|-|-|
|||H1 2018||H1 2017|Change (%)|
|Operating revenue (RMB)|1,186,760,892.26||1,308,106,180.92||-9.28%|
|Net profit attributable to the listed company’s|18,638,557.66||39,679,158.13|||
||||||-53.03%|
|shareholders (RMB)||||||
|Net profit attributable to the listed company’s||||||
|||17,262,823.25||20,774,047.49|-16.90%|
|shareholders before exceptional items (RMB)||||||
|Net cash generated from/used in operating|-5,608,853.15||64,379,323.31|||
||||||—|
|activities (RMB)||||||
|Basic earnings per share (RMB/share)|0.03||0.07||-57.14%|
|Diluted earnings per share (RMB/share)|0.03||0.07||-57.14%|
|Weighted average return on net assets (%)||0.86%||1.71%|-0.85%|
|||30 June 2018||31 December 2017|Change (%)|
|Total assets (RMB)|3,694,504,040.78||3,722,905,285.05||-0.76%|
|Net assets attributable to the listed company’s|2,122,495,960.74||2,246,896,857.86|||
||||||-5.54%|
|shareholders (RMB)||||||

3. Shareholders and Their Holdings at Period-End
Unit: share
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Number of preferred|||||||
||Number of ordinary||||||||||||
||||50,159|||shareholders with resumed||||0|||
||shareholders||||||||||||
|||||||voting rights (if any)|||||||
||Top 10 shareholders||||||||||||
||||||||||||Pledged or||
||||Nature of||Shareholdin|||Number of|Restricted||||
||Name of shareholder||||||||||frozen shares||
||||shareholder||g percentage|||shares|shares||||
||||||||||||Status|Shares|
|State-owned AssetsSupervision andAdministrationCommission ofChangzhou MunicipalPeople’s Government||State-ownedlegal person||30.43%|||170,845,236||||||
|KGI Asia Limited||Foreign legalperson||0.57%|||3,189,845||||||
|Zhang Ruirong||Domestic naturalperson||0.32%|||1,789,800||||||
|Wan Peizhong||Domestic naturalperson||0.29%|||1,645,800||||||
|Huang Guoliang||Domestic naturalperson||0.27%|||1,528,891||||||
|Hu Wenyong||Domestic naturalperson||0.27%|||1,515,066||||||
|Li Suinan||Domestic naturalperson||0.24%|||1,356,000||||||
|Liang Nianyou||Domestic naturalperson||0.24%|||1,348,452||||||

Changchai Company, Limited Interim Report 2018 (Summary)
|||||||
|-|-|-|-|-|-|
|Vanguard TotalInternational StockIndex Fund||Foreign legalperson|0.24%||1,344,607|
|Xiong Shunbao||Domestic naturalperson|0.23%||1,282,251|
|||||It is unknown whether there is any connected party or||
|||||acting-in-concert party as defined in the Measures for the||
||Connected or acting-in-concert parties|||||
|||||Administration of Disclosure of Shareholder Equity Changes||
||among shareholders above|||||
|||||of Listed Companies among the top 10 tradable share holders||
|||||or the top 10 unrestricted tradable share holders.||
|||||Shareholder Xiong Shunbao holds 1,282,251 shares of the||
||Shareholders conducting margin trading (if|||Company through the client account of collateral securities in||
||any)|||Guolian Securities Co., Ltd. for margin trading, accounting for||
|||||a stake of 0.23%.||

4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable√ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable√ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue before the date of thisReport’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
For the first half of 2018, the Company sold 315.5 thousand diesel engines and related generator sets, as well
Changchai Company, Limited Interim Report 2018 (Summary) as 68.6 thousand gasoline engines and related generator sets for RMB1,187 million, representing net profit of RMB18.9079 million (a year-on-year decline of52.79%). During the period, theCompany’s operations was in face of quite many difficulties caused by the continued deep change in the domestic agricultural machinery market, including rising diesel engine manufacturing costs resulted from increasingly stringent emission regulations, as well as effects of enhanced environment supervision on certain component suppliers. Nonetheless, despite all these challenges, the Company still managed to achieve good operating results amid a sharp growth decline across the industry, thanks to themanagement’s swift moves to change operational strategy along with the entirestaff’s hard work.
Firstly, the Company has become a larger supply source for its major domestic customers and the domestic markets of three-wheelers, mid-and-large tractors and harvesters in spite of sharp weakening across these markets. Meanwhile, its unit sales in overseas emerging markets saw a rise, generating revenue ofUS$27.77 million during the Reporting Period.
Secondly, the Company has launched a 4G33V16 diesel engine for automotive use project underChina’s Motor Vehicle Emission Standards VI, and the technology roadmap has been determined, with the related project design and theoretical computation well underway. Additionally, three technology roadmaps and the prototypes based on two of these technology roadmaps have been completed for theCompany’s 4G33V16 diesel engine for non-road vehicles project underChina’s Motor Vehicle Emission Standards IV, with the harvester carrying test in progress.
In all, the first half of 2018 saw a bigger market share of theCompany’s single-cylinder engines, as well as major breakthroughs made by its competitive 4G33 Engine in market segments for mid-and-large tractors, crawler rice harvester, etc. In the second half of the year, in order to fulfill its annual targets, the Company will continue to benchmark itself against the best operations in the industry and try to narrow the gap with them on quality-related loss control, production safety and environmental protection, cost and expense reduction, production capacity utilization, talent development, etc.
2. Matters Related to Financial Reporting
(1) Changes in Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last Accounting Period
□ Applicable√ Not applicable
No such changes.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period□ Applicable√ Not applicable
Changchai Company, Limited Interim Report 2018 (Summary) No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period
□ Applicable√ Not applicable
No such changes.