At the end of the reporting period

At the end of the previous year

Change (%) from the end of the previous year to the end of the reporting period

Total assets

3,760,121,761.95

3,610,011,554.78

4.16

Net assets attributable to shareholders of the listed company

2,105,709,694.54

2,010,827,770.37

4.72

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

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

Change (%) Compared with the Same Period of the Previous Year

Net cash flow from operating activities

125,311,299.73

173,656,554.35

-27.84

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

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

Change (%) Compared with the Same Period of Previous Year

Operating revenue

508,373,463.98

268,245,115.46

89.52

Net profit attributable to shareholders of the listed company

102,589,501.53

44,245,204.28

131.87

Net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses

101,322,975.16

37,774,644.68

168.23

Weighted Average Return on Equity (%)

4.99

3.98

An increase of 1.01 percentage points

Basic earnings per share (RMB/share)

0.44

0.25

76

Diluted earnings per share (RMB/share)

0.44

0.25

76

Project

Amount for this period

Explanation

Gains or losses on disposal of non-current assets

Approval beyond authorized powers, or approval without formal documentation, or ad hoc tax refunds or reductions

Government grants recognized in the current period’s profit or loss, except those that are closely related to the company’s ordinary operating activities and are granted in accordance with national policies on a fixed rate or quantity basis for continuous periods.

2,423,845.78

Fees for the use of funds charged to non-financial enterprises, recognized in current profit or loss

When the cost of an investment in a subsidiary, associate, or joint venture is less than the acquirer’s share of the acquiree’s identifiable net assets at fair value at the acquisition date, the difference gives rise to income.

Gain or Loss on Exchange of Non-monetary Assets

Gains or losses from entrusting others to invest or manage assets

Allowances for impairment of various assets recognized due to force majeure events, such as natural disasters.

Gain or loss on debt restructuring

Enterprise restructuring expenses, such as employee severance costs and integration expenses, etc.

Gains or losses arising from transactions whose transaction prices are manifestly unfair, to the extent that they exceed fair value

Net income or loss of a subsidiary from the beginning of the period to the acquisition date arising from a business combination under common control

Gains or losses arising from contingent events that are unrelated to the company’s ordinary operating activities

Except for effective hedging activities related to the company’s normal operating business, gains or losses arising from changes in fair value of 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.

-1,291,526.83

Reversal of impairment allowances for receivables and contract assets that are subject to separate impairment testing

Gains and losses from entrusted loans to external parties

Gains or losses arising from changes in the fair value of investment property measured subsequently using the fair value model

The impact on current profit or loss of a one-time adjustment to current profit or loss required by tax, accounting, and other laws and regulations.

Trustee operating income from management fees

Other non-operating income and expenses, excluding the items listed above

317,958.67

Other income and expenses that meet the definition of non-recurring gains or losses

Impact of non-controlling interests (after tax)

-510.58

Income tax effect amount

-183,240.67

Total

1,266,526.37

Total Number of Shareholders (Accounts)

17,939

Top Ten Shareholders’ Shareholdings

Shareholder Name (Full Name)

End-of-period holdings

Quantity

Proportion (%)

Number of Shares Subject to Sale Restrictions

Pledge or Freeze Status

Nature of Shareholder

Share Status

Quantity

Li Zuoyuan

92,872,828

40.11

91,451,745

None

Foreign natural person

Xu Nengchen

25,969,680

11.22

25,969,680

None

Foreign natural person

Li Xianfeng

12,984,840

5.61

12,984,840

None

Domestic natural person

Li Congrong

12,984,840

5.61

12,984,840

None

Foreign natural person

Xiangyang Innovation Capital Venture Investment Co., Ltd.

7,716,960

3.33

7,716,960

None

Non-state-owned legal person within the territory

Shenzhen Innovation Investment Group Co., Ltd.

4,630,320

2.00

4,630,320

None

Non-state-owned legal person within the territory

Beijing Rongding Deyuan Equity Investment Fund Partnership (Limited Partnership)

3,500,000

1.51

3,500,000

None

Non-state-owned legal person within the territory

Li Kewu

2,893,860

1.25

2,893,860

None

Domestic natural person

Chi Yuan

1,736,415

0.75

1,736,415

None

Domestic natural person

Zheng Gang

1,685,000

0.73

1,640,000

None

Domestic natural person

Shareholding Information of the Top Ten Shareholders with No Sale Restrictions

Shareholder Name

Number of shares with unrestricted tradability

Types and Number of Shares

Type

Quantity

Wang Jiancheng

1,647,900

Renminbi ordinary shares

1,647,900

Li Zuoyuan

1,421,083

Renminbi ordinary shares

1,421,083

Wu Chang

834,300

Renminbi ordinary shares

834,300

Wuxi Baifa Generator Group Co., Ltd.

611,800

Renminbi ordinary shares

611,800

Beijing Zhike Industrial Investment Holding Group Co., Ltd.

550,000

Renminbi ordinary shares

550,000

Wang Luyan

467,000

Renminbi ordinary shares

467,000

Samui

383,329

Renminbi ordinary shares

383,329

Niu Airong

350,700

Renminbi ordinary shares

350,700

Lü Jun

320,000

Renminbi ordinary shares

320,000

Liu Fang

307,700

Renminbi ordinary shares

307,700

Explanation of the Affiliative Relationship or Concerted Action Among the Shareholders Listed Above

Shareholder Li Zuoyuan and Xu Nengchen are married; shareholder Li Zuoyuan and Li Congrong are father and daughter; and shareholder Li Zuoyuan and Li Xianfeng are father and son. Shareholders Li Zuoyuan, Xu Nengchen, Li Congrong, and Li Xianfeng have entered into a concerted action agreement and are acting in concert. Shenzhen Venture Capital holds a 26.67% equity stake in Xiangyang Innovation, making it the second-largest shareholder of Xiangyang Innovation. It is unknown whether any other shareholders are affiliated or act in concert.

Explanation of Preferred Shareholders Whose Voting Rights Have Been Restored and the Number of Shares Held

Not applicable

Main Projects

End of March 2021 / Q1 2021

End of 2020 / Q1 2020

Percentage Change

Reason for the change

Trading financial assets

19,148,641.61

41,193,502.80

-54%

Redemption of financial products

Notes Receivable

109,506.45

344,792.15

-68%

Collection of a commercial acceptance bill upon maturity

Short-term loans

90,000,000.00

-

Increase working capital loans

Operating revenue

508,373,463.98

268,245,115.46

90%

On the one hand, 2020 was affected by the COVID‑19 pandemic, resulting in a relatively low base for comparison; on the other hand, in 2021, driven by favorable factors such as various macroeconomic policies and the transition to new emission standards, the medium- and heavy-duty truck sector continued to improve. Sales grew at the company’s major customers—Foton Cummins, Dongfeng Cummins, and Dongfeng Commercial Vehicle—and, following the successful introduction of new projects from Yuchai Guangxi, FPT Industrial, and Xi’an Cummins, sales have shown a steady upward trend. With robust order demand, the company’s core business revenue increased significantly.

Cost of sales

333,107,614.11

193,089,418.26

73%

Related to the growth of operating revenue

Taxes and Surcharges

4,176,865.00

1,192,372.11

250%

Operating revenue increased, resulting in a corresponding rise in taxes and surcharges.

Selling expenses

12,315,657.32

3,383,935.94

264%

Operating revenue increased, particularly due to higher sales to out-of-region customers, resulting in a significant rise in transportation costs; the increase in revenue also led to a corresponding increase in quality claim reserves, which are accrued based on operating revenue.

Research and development expenses

23,402,148.36

12,328,413.39

90%

New project development and increased R&D investment

Financial expenses

4,560,241.22

2,662,824.40

71%

During the same period, government interest subsidies were received, resulting in lower interest expenses.

Other income

2,423,854.97

1,627,017.91

49%

This period received a refund of 500,000 yuan in handling fees for withholding and remitting individual income tax.

Investment income (losses are indicated with a “-” sign)

2,897,234.82

1,230,580.32

135%

The joint venture turned a profit, and investment income increased.

Gains (losses) from changes in fair value (presented with a minus sign)

-2,508,679.94

-

Impact of Securities Investment Price Volatility

Impairment loss on credit (losses are presented as negative figures)

593,404.83

6,180,681.63

-90%

Affected by fluctuations in accounts receivable balances

Non-operating income

498,047.19

1,641,970.45

-70%

Received government project performance-based incentives totaling RMB 1.25 million in the same period.

Net profit attributable to shareholders of the listed company

102,589,501.53

44,245,204.28

131.87%

Basic earnings per share (RMB/share)

0.44

0.25

76%

Revenue growth and improved profitability

Company Name

Xiangyang Changyuan Donggu Industrial Co., Ltd.

Legal Representative

Li Zuoyuan

Date

April 19, 2021