2021-08-17-深交所-苏常柴Ｂ_2021年半年度报告（英文版）_160页_999kb

Changchai Company Limited Interim Report 2021 Summary

Core Content Overview

This document is the Interim Report 2021 of Changchai Company, Limited, published in August 2021. It outlines the company's performance, business operations, core competitiveness, and key financial data for the first half of 2021 (1 January 2021 to 30 June 2021).

Main Points and Key Information

1. Important Notes

• The Board of Directors, Supervisory Committee, and senior management guarantee the factuality, accuracy, and completeness of the report.
• The financial statements are also guaranteed by Shi Xinkun, Zhang Xin, and Jiang He.
• There are no interim dividend plans, either in cash or stock.
• The report is available in both Chinese and English, with the Chinese version taking precedence in case of discrepancies.

2. Corporate Information

• Stock Name: Changchai, Changchai-B
• Stock Code: 000570, 200570
• Stock Exchange: Shenzhen Stock Exchange
• Company Name (Chinese): 常柴股份有限公司
• Company Name (English): CHANGCHAI COMPANY, LIMITED
• Legal Representative: Shi Xinkun
• Total Share Capital (as of 30 June 2021): 705,692,507 shares

3. Key Financial Highlights

4. Exceptional Gains and Losses

• The Company reported exceptional gains of RMB102,028,651.02 in H1 2021, primarily due to:
  • Fair value changes of subsidiaries' investments.
  • Government grants through profit or loss.
• There were no exceptional gains or losses reclassified to recurrent operations in the reporting period.

5. Principal Activities

• The company focuses on the R&D, manufacturing, and sales of diesel engines under the "Changchai" brand and gasoline engines under the "Changchai Robin" brand.
• Products are used in agricultural machinery, construction machinery, light commercial vehicles, generator sets, and shipborne machinery.
• There were no major changes in core business or main products during the reporting period.

6. Main Products

• Diesel Engines:
  • Single-cylinder and multi-cylinder engines.
  • Power range: 1.62kW to 117.6kW.
  • Cylinder diameters: 65mm to 135mm.
  • Exported to Southeast Asia, South America, the Middle East, Africa, and other regions.
• Gasoline Engines:
  • General-purpose small gasoline engines.
  • Power range: 1.5kW to 7.0kW.
  • Exported to Southeast Asia, the Middle East, Europe, America, Africa, and Japan.
• Product Features:
  • Diesel engines: high power, low oil consumption, low noise, compact structure, low emission, good reliability.
  • Gasoline engines: simple structure, good reliability, easy maintenance.

7. Business Models

• R&D Model:
  • Based on market demand and forward-looking technologies.
  • Marketing conducts market assessments, and the Technology Center develops products accordingly.
• Purchasing Model:
  • "Purchase-to-order" model using ERP system to align with sales and production plans.
• Production Model:
  • "Make-to-order" model with strict production planning and quality control.
• Sales Model:
  • "Direct selling + distribution" model, with domestic and international markets.

8. Industry Trends and Position

• The internal combustion engine industry is shifting toward energy efficiency, emission reduction, and intelligent manufacturing.
• China VI for gasoline engines and China IV for non-road diesel engines are driving the industry toward environmentally efficient products.
• The market is concentrating among large-scale enterprises with strong technical and financial capabilities.
• Changchai is a leading manufacturer of small single-cylinder diesel engines in the agricultural machinery industry, with a high market share and strong brand recognition.

9. Performance Drivers

• National Policy Support:
  • Policies promoting agricultural development, construction machinery, and rural infrastructure.
• Industrial Chain Synergy:
  • In-house casting and assembly reduces costs and improves efficiency.
• Stable R&D Team:
  • Long-term experience in engine design and manufacturing.
  • Effective training mechanisms for future R&D needs.
• Well-Known Brand:
  • Long-standing brand reputation and customer loyalty.
  • Partnerships with major agricultural machinery companies for over 15 years.

10. Core Competitiveness

• Brand Advantage:
  • A century-old national enterprise, known for high-quality diesel engines.
  • Recognized as a well-known trademark and leading brand in China.
• Technology Advantage:
  • State-level technology center and post-doctoral research station.
  • 153 patents (including 13 invention patents).
  • Won science and technology awards, innovation awards, and high-tech product recognition.
• Marketing Advantage:
  • A nationwide sales and service network with 5 business units, 26 service centers, and 713 maintenance stations.
  • A customized service monitoring platform for enhanced after-sales service.

Conclusion

The Changchai Company, Limited has shown strong growth in the first half of 2021, with operating revenue and net profit increasing by 28.24% and 366.55%, respectively. The core business remains stable, with product development and market expansion driving performance. The Company's competitive advantages in brand, technology, and marketing have been reinforced, while it continues to adapt to new environmental standards and market demands. The financial statements and key performance metrics are consistent with the 2020 Annual Report, and the company has no interim dividend plans.