End of this reporting period

End of last year

Increase/Decrease (%) at the end of this reporting period compared to the end of last year

Total Assets

3,503,587,770.15

2,719,026,348.13

28.85

Net assets attributable to shareholders of the listed company

1,913,594,589.09

1,090,588,513.77

75.46

From the beginning of the year to the end of the reporting period

(January-September)

From the beginning of last year to the end of last year's reporting period

(January-September)

Increase/Decrease (%) compared to the same period of last year

Net cash flow from operating activities

264,351,217.05

223,193,636.99

18.44

From the beginning of the year to the end of the reporting period

(January-September)

From the beginning of last year to the end of last year's reporting period

(January-September)

Increase/Decrease compared to the same period of last year

(%)

Operating Revenue

1,211,454,352.52

812,035,807.60

49.19

Net profit attributable to shareholders of the listed company

217,305,445.78

119,429,063.15

81.95

Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses

193,485,840.77

98,922,294.95

95.59

Weighted average return on net assets (%)

13.65

13.55

Increased by 0.1 percentage points

Basic earnings per share (yuan/share)

1.09

0.69

57.97

Diluted earnings per share (yuan/share)

1.09

0.69

57.97

Item

Amount for the period

(July-September)

Amount from the beginning of the year to the end of the reporting period (January-September)

Explanation

Gains and losses on disposal of non-current assets

51,429.12

51,429.12

Unauthorized approval, or lack of formal approval documents, or occasional tax refunds/exemptions

Government subsidies included in the current profit or loss, except for government subsidies that are closely related to the company's normal business operations, comply with national policies and regulations, and are continuously enjoyed according to certain standards or quantities.

5,557,868.56

28,493,557.06

Charges for the use of funds collected from non-financial enterprises included in the current profit or loss

Income generated from the investment cost of a subsidiary, associate, or joint venture being less than the fair value of the identifiable net assets of the investee that should be enjoyed at the time of acquisition

Gains and losses on non-monetary asset exchanges

Gains and losses on assets entrusted to others for investment or management

Impairment provisions for various assets due to force majeure factors, such as natural disasters

Gains and losses on debt restructuring

Corporate restructuring expenses, such as expenses for employee placement and integration expenses

Gains and losses exceeding the fair value portion resulting from transactions where the transaction price is significantly unfair

Net profit or loss from the beginning of the period to the date of merger of subsidiaries resulting from business combinations under the same control

Gains and losses arising from contingent events unrelated to the company's normal business operations

Gains and losses from fair value changes in trading financial assets, derivative financial assets, trading financial liabilities, and derivative financial liabilities, as well as investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other debt investments, excluding effective hedging transactions related to the company's normal business operations

Reversal of impairment provisions for receivables and contract assets that are individually tested for impairment

Gains and losses from external entrusted loans

Gains and losses from changes in the fair value of investment properties subsequently measured using the fair value model

Impact on current profit or loss due to one-time adjustments to current profit or loss in accordance with the requirements of tax, accounting, and other laws and regulations

Trustee management fees income

Other non-operating income and expenses other than those listed above

-8,040.90

-419,471.93

Other profit and loss items that meet the definition of non-recurring gains and losses

Impact of minority shareholders' equity (after tax)

-9,155.44

-19,290.25

Impact of income tax

-860,762.79

-4,286,618.99

Total

4,731,338.55

23,819,605.01

Total number of shareholders (households)

20,492

Top ten shareholders' holdings

Shareholder Name

(Full Name)

Number of shares held at the end of the period

Proportion (%)

Number of shares with restricted conditions

Pledged or frozen status

Shareholder nature

Share status

Quantity

Li Zuoyuan

92,722,828

40.05

91,451,745

None

0

Domestic natural person

Xu Nengchen

25,969,680

11.22

25,969,680

None

0

Domestic natural person

Li Xianfeng

12,984,840

5.61

12,984,840

None

0

Domestic natural person

Li Congrong

12,984,840

5.61

12,984,840

None

0

Domestic natural person

Xiangyang Innovation Capital Venture Capital Co., Ltd.

7,716,960

3.33

7,716,960

None

0

Domestic non-state-owned legal person

Shenzhen Innovation Investment Group Co., Ltd.

4,630,320

2.00

4,630,320

None

0

Domestic non-state-owned legal person

Beijing Rongding Deyuan Equity Investment Fund Partnership (Limited Partnership)

3,500,000

1.51

3,500,000

None

0

Domestic non-state-owned legal person

Li Kewu

2,893,860

1.25

2,893,860

None

0

Domestic natural person

Chi Yuan

1,736,415

0.75

1,736,415

None

0

Domestic natural person

Zheng Gang

1,650,000

0.71

1,640,000

None

0

Domestic natural person

Top ten shareholders without restricted conditions

Shareholder Name

Number of shares without restricted conditions

Type and quantity of shares

Type

Quantity

Li Zuoyuan

1,271,083

RMB ordinary shares

1,271,083

Wu Chang

834,300

RMB ordinary shares

834,300

UBS AG

639,594

RMB ordinary shares

639,594

Shi Shengxing

479,835

RMB ordinary shares

479,835

Chen Xiaotan

428,100

RMB ordinary shares

428,100

Niu Airong

347,700

RMB ordinary shares

347,700

Zheng Shizheng

328,200

RMB ordinary shares

328,200

Xu Wen

305,200

RMB ordinary shares

305,200

Li Baojin

296,500

RMB ordinary shares

296,500

Jiangsu Private Investment Holding Co., Ltd.

262,100

RMB ordinary shares

262,100

Explanation of the relationship or concerted action of the above shareholders

Shareholders Li Zuoyuan and Xu Nengchen are husband and wife, Li Zuoyuan and Li Congrong are father and daughter, and Li Zuoyuan and Li Xianfeng are father and son; shareholders Li Zuoyuan, Xu Nengchen, Li Congrong and Li Xianfeng have signed a concerted action agreement and are concerted actors. Shenzhen Innovation Investment Group Co., Ltd. holds 26.67% equity in Xiangyang Innovation Capital Venture Capital Co., Ltd., and is the second largest shareholder of Xiangyang Innovation Capital Venture Capital Co., Ltd. It is unknown whether there is any relationship or concerted action among other shareholders.

Explanation of preferred shareholders whose voting rights have been restored and the number of shares held

None

Subject

Current period

Same period last year

Change percentage (%)

Explanation

Operating Revenue

1,211,454,352.52

812,035,807.60

49.19

Sales increased for existing customers such as Foton Cummins, Dongfeng Cummins, and Dongfeng Commercial Vehicle, while new customers such as Xi'an Cummins, SAIC Fiat Hongyan, and Guangxi Yuchai achieved mass supply.

Operating Cost

      816,450,316.15

     579,354,547.37

40.92

Related to the increase in operating income

Selling Expenses

       24,513,242.17

      13,578,058.83

80.54

Rising sales revenue, especially increased sales to customers in other regions, led to higher transportation costs; quality claim expenses accrued based on sales revenue increased accordingly; market development expenses increased.

Administrative Expenses

       53,085,211.60

      28,727,855.62

84.79

Production halt during the epidemic resulted in equipment depreciation being charged to administrative expenses; intermediary service fees incurred for listing were higher than the same period last year.

Financial Expenses

        3,397,035.66

      14,674,981.76

-76.85

Decrease in bank loans, interest expense decreased year-on-year; proceeds from public offering were received, interest income increased year-on-year.

R&D Expenses

       62,772,730.40

      43,547,950.68

44.15

New project development, increased investment in National VI R&D.

Investment Income

        3,487,257.98

      -1,548,702.16

 -

Joint ventures turned losses into profits, increasing investment income.

Credit Impairment Losses

       -7,023,006.17

       1,868,925.22

-475.78

Increased sales revenue led to an increase in accounts receivable, and bad debts accrued based on the proportion of accounts receivable balance also increased.

Non-Operating Income

       10,372,341.49

       4,975,328.51

108.48

Received government listing incentives.

Monetary Funds

      658,370,136.59

     323,321,899.65

103.63

Funds raised from the initial public offering were in place, leading to increased bank deposits, and higher sales volume resulted in higher cash inflow compared to the same period.

Accounts Receivable

      505,454,151.25

     272,323,848.90

85.61

Operating income increased, and the balance of accounts receivable increased.

Receivables Financing

      248,043,631.12

     175,474,674.70

41.36

Operating income increased, and the balance of notes receivable increased.

Prepayments

       28,402,820.71

      19,568,107.44

45.15

Advance payments for material purchases were higher than the same period.

Fixed Assets

    1,155,300,842.58

     857,638,320.38

34.71

Numerous new projects and new production lines to enhance capacity led to higher equipment investment compared to the same period.

Construction in Progress

      262,927,314.85

     442,177,478.53

-40.54

Many projects were successively put into operation, and construction in progress such as equipment and factory buildings were largely transferred to fixed assets.

Deferred Income Tax Assets

       29,024,237.74

      21,984,114.87

32.02

Increase in deductible temporary differences.

Short-term Loans

                 -  

      90,000,000.00

-

Repayment of short-term loans.

Accounts Payable

      402,869,107.70

236,036,522.48

70.68

Increased sales and procurement led to

Advance payments

555,198.31

-

Changes in accounting standards, the "Advance payments" item is changed to "Contract liabilities"

Contract liabilities

3,862,122.40

 -

Changes in accounting standards, the "Advance payments" item is changed to "Contract liabilities"

Employee benefits payable

27,511,043.70

19,741,421.20

39.36

Increased production resulted in higher employee benefits compared to the same period last year.

Taxes payable

28,167,963.00

7,682,782.81

266.64

Significant tax withholding due to cash dividends in September

Long-term payables

55,362,506.85

Relocation completed, government relocation compensation transferred to asset disposal income

Provisions

26,489,236.67

19,252,352.04

37.59

Increased operating income resulted in higher provisions based on operating income percentage compared to the same period last year.

Deferred tax liabilities

152,490.49

274,584.34

-44.46

Decrease in taxable temporary differences

Share capital

231,522,000.00

173,641,500.00

33.33

Due to the initial public offering of shares

Capital reserve

1,077,929,188.59

252,282,659.07

327.27

Share premium from the initial public offering of shares

Retained earnings

88,083,959.24

65,964,646.01

33.53

Increased net profit, 10% of net profit

Unappropriated profits

516,059,441.26

449,322,517.37

14.85

Due to retained earnings and cash dividends

Net cash flow from financing activities

423,269,523.23

-127,389,858.80

 -

Increased cash inflow due to funds raised from the IPO

Basic earnings per share

                1.09

               0.69

57.97

Related to profit increase

Diluted earnings per share

                1.09

               0.69

57.97

Related to profit increase

Company Name

Xiangyang Changyuan Donggu Industrial Co., Ltd.

Legal Representative

Li Zuoyuan

Date

October 31, 2020