1、 1CHANGCHAI COMPANY,LIMITED THE THIRD QUARTERLY REPORT OF YEAR 2003 1.Important notice 1.1 The Board of Directors of the Changchai Company,Limited(hereinafter referred to as the Company)and its directors individually and collectively accept responsibility for the correctness,accuracy and completenes
2、s of the contents of this report and confirm that there are no material omissions nor errors which would render any statement misleading.1.2 Director Mr.Zhu Xinmin was absent from the Board meeting due to some reasons,and entrusted Director Mr.Shi Jianchun to vote on his behalf.1.3 Person in charge
3、of the Company Mr.Zhang Junyuan,person in charge of the accounting Mr.Xue Guojun and person in charge of accounting organ Mr.Tang Jianzhong hereby confirm that the Financial Report of the Quarterly Report is true and complete.1.4 The third quarterly financial report has not been audited.2.Company Pr
4、ofile 2.1 Basic information Short form of the stock*ST Changchai A,*ST Changchai B Short form of the Stock before the change ST Changchai A,ST Changchai B Stock code 000570,200570 Secretary of Board of Directors Representative in Charge of Securities Affairs Name Zhang Jianhe He Jianjiang Contact ad
5、dress No.123,Huaide Middle Road,Changzhou,Jiangsu Tel 86-519-6600448 86-519-6603656-3155 Fax 86-519-6630954 86-519-6630954 E-mail Z H 2.2 Financial information 2.2.1 Major accounting data(Unit:RMB)Sep.30,2003 Dec.31,2002 Increase/decrease of the end of report period compared with the end of the prev
6、ious year(%)Total assets 1,913,025,935 2,184,414,066-12.42 Shareholders equity(excluding minority interests)764,972,040 738,664,376 3.56 Net assets per share 2.04 1.97 3.56 Net assets per share after adjustment 1.87 1.63 14.72 Jul.-Sep.2003 Jan.-Sep.2003 Increase/decrease of the report period compar
7、ed with the same period of 2previous year(%)Net cash flows arising from operating activities 80,025,657 Earnings per share 0.025 0.087(note)Return on equity(%)1.20 4.27 Return on equity after deducting non-recurring gains and losses(%)1.23 4.29 Note:Index of net profit at the same period of the last
8、 year is negative number.Items of non-recurring gains and losses Amount(RMB)Net income/expenditure of non-operating-2,704,326 Investment income 1,170,857 Subsidy income 966,435 Impact on income tax 362,985 Total-204,049 2.2.2 Statement of profit Statement of profit(Table 1)Prepared by Changchai Comp
9、any,Limited Unit:RMB Jul.Sep.2002 Jan.Sep.2002 Items Parent company Consolidation Parent company Consolidation I.Income from core business 328,156,286 334,076,494 1,006,529,544 1,229,822,398 Less:Cost of core business 284,408,981 291,788,699 896,268,685 1,091,352,979 Taxes and extras of core busines
10、s 0-981 1,077,577 II.Profit from core business 43,747,305 42,288,776 110,260,859 137,391,842 Add:Profit from other business 633,334 1,095,051 4,568,965 11,228,572 Less:Operating expense 20,160,517 21,799,378 44,002,690 55,978,974 Administrative expense 24,283,558 19,390,723 66,624,899 88,588,334 Fin
11、ancial expense 4,806,111 2,969,208 16,381,356 23,627,798 III.Operating profit-4,869,547-775,482-12,179,121-19,574,692 Add:Investment income-404,547-264,898 1,155,064 1,405,202 Subsidy income 0 2,617,814 2,775,800 Income from non-operating 217,798 542,562 1,805,702 3,041,080 Less:Expenditure of non-o
12、perating 3,268,573 3,195,124 6,740,606 7,732,293 IV.Total profit-8,324,869-1,075,128-15,958,961-20,084,903 Less:Income tax 0 751,613 797,282 Minorities shareholders gains and losses 0-1,596,264-2,572,895 Unconfirmed investment losses 0 6,077,841-3,327,075 V.Net profit-8,324,869-6,308,318-15,958,961-
13、14,982,215 Statement of profit(Table 2)Prepared by Changchai Company,Limited Unit:RMB Jul.Sep.2003 Jan.Sep.2003 Items Parent company Consolidation Parent company Consolidation I.Income from core business 353,094,488.00 382,563,603 1,015,735,543 1,159,079,291 3Less:Cost of core business 301,806,625 3
14、31,171,476 865,811,182 1,000,990,860 Taxes and extras of core business 0.00 282,251-858,716 II.Profit from core business 51,287,863.00 51,109,876 149,924,361 157,229,715 Add:Profit from other business 1,175,858.00 2,323,907 6,372,498 9,724,529 Less:Operating expense 17,229,075.00 20,021,788 41,910,5
15、99 52,595,154 Administrative expense 16,026,934.00 19,743,943 55,842,707 70,145,303 Financial expense 6,434,718.00 7,637,370 14,560,003 19,444,656 III.Operating profit 12,772,994.00 6,030,682 43,983,550 24,769,131 Add:Investment income-2,074,040.00 21,250-6,260,766 1,170,857 Subsidy income 0.00 642,
16、854-966,435 Income from non-operating 2,257,626.00 2,549,784 6,199,460 6,898,807 Less:Expenditure of non-operating 2,421,553.00 2,739,169 8,084,827 9,603,133 IV.Total profit 10,535,027.00 6,505,401 35,837,417 24,202,097 Less:Income tax 0.00-362,985 Minorities shareholders g ains and losses 0.00-692,
17、775-2,468,350 Unconfirmed investment losses 0.00-2,016,324-6,333,127 V.Net profit 10,535,027.00 9,214,500 35,837,417 32,640,589 2.3 Total number of shareholders at the end of the report period At the end of the report period,the Company had totally 72734 shareholders,including 57109 shareholders of
18、A-share and 15625 shareholders of B-share.3.Discussion and analysis of the Management 3.1 Brief analysis of total status of operating activities in the report period By the end of the report period,the Company produced 755,300 sets diesel engine in total,down nearly 5%year-on-year;sold 769,500 sets
19、diesel engine in total,down nearly 4%year-on-year.The Company realized net profit of RMB 32,640,589 in total,with increasing by RMB 47,622,794 compared with the same period of last year.The Company surmounted the influence of increasing by a big margin in price of raw material,and caused proportion
20、of the products that have a higher profit level in sales to enhance continuously through the adjustment of product structure.Although sales volume have reduced a little in this year,but the profit capability was increasing.3.1.1 Particulars about main industries or products taking over 10%of the tot
21、al amount of income from core business or profit of core business Applicable Inapplicable Product Income from core business(RMB)Cost of core business(RMB)Gross profit ratio(%)Diesel engine 1,159,079,291 1,000,990,860 13.57 Including:Related transaction 53,624,625 46,310,688 13.57 3.1.2 Seasonal and
22、periodicity characteristics of the operation Applicable Inapplicable March to May are large midseason in sale of agricultural machinery industry involved 4by the Company,the last ten-day of July to September are small midseason in sale of the industry.3.1.3 Profit formation of the report period(Expl
23、anation of reason and material change of proportion of profit of core business,profit of other business,period expense,investment income,subsidy income and income/expenditure of non-operating in the total amount of profit compared with the previous report period)Jul.-Sep.2003 Jan.-Jun.2003 Items Amo
24、unt(RMB)Proportion in total profit(%)Amount(RMB)Proportion in total profit(%)Increase/decrease(%)Profit of core business 51,109,876 785.65 106,119,839 599.66 31.02 Profit of other business 2,323,907 35.72 7,400,622 41.82 14.59 Period expenses 47,403,101 728.67 94,782,012 535.59 36.05 Investment inco
25、me 21,250 0.33 1,149,607 6.50-94.92 Subsidy income 642,854 9.88 323,581 1.83 439.89 Net income/expenditure of non-operating-189,385-2.91-2,514,941-14.21-79.52 The profit in the report period occurred changes compared with the previous report period,which was mainly because agricultural machinery ind
26、ustry engaged by the Company suffered seasonal influence,and with the result that the increase speed of total profit slowed down in the report period.3.1.4 Explanation on material change of core business and its structure and the reason compared with the previous report period Applicable Inapplicabl
27、e 3.1.5 Explanation of reason and material change of profitability capability of core business(gross profit ratio)compared with the previous report period Applicable Inapplicable 3.1.6 In 2002,Jiangsu Gongzheng Certified Public Accountants issued Auditors Report with explanatory notes for the Compan
28、y,which was mainly because the auditor of the Company as of the year 2001 is Arthur Andersen&Company Certified Public Accountants.There exists no any influence on the quarterly report due to the explanatory notes.3.2 Analysis and explanation of significant events and the influence and solutions Appl
29、icable Inapplicable 3.3 Particulars about accounting policy,accounting estimation,change of consolidated scope and significant accounting errors and explanation of reasons Applicable Inapplicable 3.4 Relevant explanation of the Board of Directors and the Supervisory Committee under the situation of
30、being audited and provided“Non-standardized opinion”5Applicable Inapplicable 3.5 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and
31、 explanation of reason Applicable Inapplicable In the report period,the Companys core business kept a good development situation,and it is estimated that the Company will realize profit in the whole year of 2003.3.6 Rolling adjustment of annual business plan or budget ever disclosed Applicable Inapp
32、licable Board of Directors of Changchai Company,Limited Oct.25,2003 6Balance Sheet(September 30,2003)Company:Changchai Company,Limited Unit:In RMB Amount as at the year-begin Amount as at the year-begin Amount as at the period-end Amount as at the period-end Assets(Parent Company)(Consolidation)(Par
33、ent Company)(Consolidation)Current assets:Monetary funds Short-term investment Notes receivable Dividends receivable Interest receivable Accounts receivable Other receivables Accounts in advance Subsidies receivable Inventories Expenses to be apportioned Long-term credit investment due within 1 year
34、 Other current assets Total current assets Long-term investment:Long-term equity investment Total long-term investment Fixed assets:Fixed assets-original value Less:Accumulated depreciation Less:Provisions for devaluation of fixed assets Fixed assets-net value Engineering materials 0 0 Construction
35、in progress Disposal of fixed assets Total fixed assets Intangible and other assets:Intangible assets Long-term expenses to be apportioned Other long-term assets Total intangible and other assets Deferred taxes:Deferred tax-debit item Total assets Legal representative:Zhang Junyuan,Person in charge
36、of accounting:Xue Guojun,Chief Accountant:Tang Jianzhong 7Balance Sheet(Con.)(September 30,2003)Company:Changchai Company,Limited Unit:In RMB Amount as at the year-begin Amount as at the year-begin Amount as at the period-end Amount as at the period-end Liabilities and Shareholders Equity(Parent Com
37、pany)(Consolidation)(Parent Company)(Consolidation)Current liabilities:Short-term loans Notes payable Accounts payable Accounts prepaid Accrued payroll Welfare funds payable Dividends payable Taxes payable Other duties payable Other accounts payable Accrued expenses Long-term liabilities due within
38、1 year Other current liabilities Total current liabilities Long-term liabilities:Long-term loans Bonds payable Long-term accounts payable Other long-term liabilities Total long-term liabilities Deferred taxes:Deferred taxes-credit item Total liabilities Minority shareholders equity Shareholders equi
39、ty Share capital Capital public reserve Surplus public reserve Including:Statutory welfare funds Retained profit Unconfirmed investment losses Total shareholders equity Total liabilities and shareholders equity Legal representative:Zhang Junyuan,Person in charge of accounting:Xue Guojun,Chief Accoun
40、tant:Tang Jianzhong 8Profit and Profit Distribution Statement(Jan.-Sep.2002)Company:Changchai Company,Limited Unit:In RMB Jul.-Sep.2002 Jan.-Sep.2002 Items(Parent Company)(Consolidation)(Parent Company)(Consolidation)I.Income from main business lines Less:Cost of main business lines Taxes and extras
41、 of main business lines II.Profit from main business lines Add:Profit from other business lines Less:Operating expenses Administrative expenses Financial expenses III.Operating profit Add:Investment income Subsidy income Non-operating income Less:Non-operating expenditure IV.Total profit Less:Income
42、 tax Minority shareholders gains and losses Unconfirmed investment losses V.Net profit Legal representative:Zhang Junyuan,Person in charge of accounting:Xue Guojun,Chief Accountant:Tang Jianzhong Profit and Profit Distribution Statement(Jan.-Sep.2003)Company:Changchai Company,Limited Unit:In RMB Jul
43、.-Sep.2003 Jan.-Sep.2003 Items(Parent Company)(Consolidation)(Parent Company)(Consolidation)I.Income from main business lines Less:Cost of main business lines Taxes and extras of main business lines II.Profit from main business lines Add:Profit from other business lines Less:Operating expenses Admin
44、istrative expenses Financial expenses III.Operating profit Add:Investment income Subsidy income Non-operating income Less:Non-operating expenditure IV.Total profit Less:Income tax Minority shareholders gains and losses Unconfirmed investment losses V.Net profit Legal representative:Zhang Junyuan,Per
45、son in charge of accounting:Xue Guojun,Chief Accountant:Tang Jianzhong 9Cash Flows Statement(Jan.-Sep.2003)Company:Changchai Company,Limited Unit:In RMB Items Parent Company Consolidation I.Cash flows arising from operating activities Cash received from selling commodities and providing labor servic
46、es Restoration of tax received Other cash received concerning operating activities Subtotal of cash inflows Cash paid for purchasing commodities and receiving labor service Cash paid to/for staff and workers Taxes paid Other cash paid concerning operating activities Subtotal of cash outflows Net cas
47、h flows arising from operating activities II.Cash flows arising from investment activities:Cash received from recovering investment Cash received from investment income Net cash received from disposal of fixed,intangible and other long-term assets Other cash received concerning investment activities
48、 Subtotal of cash inflows Cash paid for purchasing fixed,intangible and other long-term assets Cash paid for investment Other cash paid concerning investment activities Subtotal of cash outflows Net cash flows arising from investment activities III.Cash flows arising from financing activities:Cash r
49、eceived from absorbing investment Cash received from borrowing Other cash received concerning financing activities Subtotal of cash inflows Cash paid for repayment of debt Cash paid for dividends or profit distributing or interest paying Other cash paid concerning financing activities Subtotal of ca
50、sh outflows Net cash flows arising from financing activities IV.Influence of fluctuation in exchange rate on cash V.Net increase of cash and cash equivalents Legal representative:Zhang Junyuan,Person in charge of accounting:Xue Guojun,Chief Accountant:Tang Jianzhong 10Cash Flows Statement(Con.)(Jan.
