[年报]苏常柴Ｂ(200570):2022年年度报告（英文版）
原标题:苏常柴Ｂ:2022年年度报告（英文版） ANNUALREPORT2022 April2023 PartIImportantNotes,TableofContentsandDefinitions TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofChangchaiCompany,Limited(hereinafterreferredtoas the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.ShiXinkun,theCompany’slegalrepresentative,ZhangXin,theCompany’sGeneralManager,andJiangHe,headoftheCompany’sfinancialdepartment(equivalenttofinancialmanager)herebyguaranteethattheFinancialStatementscarriedinthisReportarefactual,accurateandcomplete. AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary. Anyplansforthefutureandotherforward-lookingstatementsmentionedinthisReportshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks. TheCompanyhasdescribedindetailtherisksitmightfacein“XIProspects”in“PartIIIManagementDiscussionandAnalysis”herein. TheBoardhasapprovedafinaldividendplanasfollows:basedonthe705,692,507shares,acashdividendofRMB0.10(taxinclusive)per10sharesistobedistributedtotheshareholders,withnobonusissuefromeitherprofitorcapitalreserves. TableofContents PartIImportantNotes,TableofContentsandDefinitions...........................................................2 PartIICorporateInformationandKeyFinancialInformation...................................................6 PartIIIManagementDiscussionandAnalysis..............................................................................11 PartIVCorporateGovernance.......................................................................................................46 PartVEnvironmentalandSocialResponsibility..........................................................................65 PartVISignificantEvents...............................................................................................................66 PartVIIShareChangesandShareholderInformation................................................................77 PartVIIIPreferredShares..............................................................................................................86 PartIXBonds...................................................................................................................................87 PartXFinancialStatements............................................................................................................88 DocumentsAvailableforReference 1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,GeneralManagerandheadofthefinancialdepartment. 2.TheoriginalcopyoftheIndependentAuditor’sReportsignedandsealedbytheCPAs,aswellassealedbytheCPAfirm. 3.TheoriginalsofalltheCompany’sdocumentsandannouncementswhichweredisclosedonSecuritiesTimeandTaKungPao(HK)(newspapersdesignatedbytheCSRCforinformationdisclosure)duringtheReportingPeriod. 4.TheAnnualReportdisclosedinothersecuritiesmarkets. Theabove-mentioneddocumentsavailableforreferenceareallkeptintheSecretariatoftheBoardofDirectorsoftheCompany. ThisReporthasbeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.Definitions
ICorporateInformation
TheindependentauditfirmhiredbytheCompany:
√Applicable□Notapplicable
□Applicable√Notapplicable VIKeyFinancialInformation Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes√No
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative. √Yes□No
1.NetProfitandEquityunderCASandIFRS □Applicable√Notapplicable NodifferencefortheReportingPeriod. 2.NetProfitandEquityunderCASandForeignAccountingStandards □Applicable√Notapplicable NodifferencefortheReportingPeriod. VIIIKeyFinancialInformationbyQuarter Unit:RMB
IXExceptionalGainsandLosses √Applicable□Notapplicable Unit:RMB
NosuchcasesfortheReportingPeriod. ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—ExceptionalGain/LossItems: □Applicable√Notapplicable NosuchcasesfortheReportingPeriod. PartIIIManagementDiscussionandAnalysis IIndustryOverviewfortheReportingPeriod Weareamanufacturerofinternalcombustionenginesandfittingsingeneralequipmentmanufacturing.Accordingtotheclassificationoffuelused,internalcombustionenginesaremainlydividedintodieselenginesandgasolineengines.Ourdieselenginesandgasolineenginesaremainlyusedinnon-roadmobilemachineryfieldssuchasharvesters,tractors,plantprotectionmachinery,smallengineeringmachinery,andshipbornemachinery.(1)Basicinformationontheindustry TheinternalcombustionengineisanimportantsupportforChina'smanufacturingindustrysecurity,energysecurityandnationaldefensesecurity,andanimportantbasicindustryofnationaleconomyandnationaldefenseconstruction.Theinternalcombustionengineisthemostpower-dense,thermallyefficientandwidelyusedheatenginepowerunit. Inordertoimplementthenationaloveralldevelopmentstrategyofenergyconservation,emissionreduction,transformation,andupgrading,theinternalcombustionengineindustryandagriculturalmachineryindustrywillstrengthenindependentinnovationandresearchanddevelopment,acceleratetheconstructionofacommonbasictechnologyplatform, optimizethe constructionofthe upstreamanddownstreamindustrychain,implementintelligent manufacturing, and actively carry out international exchange and cooperation to accelerate the realizationofindustrialtechnologyupgrading. (2)Developmentpatternandtrendoftheindustry Intermsofpolicies,atthebeginningof2023,the20thNo.1Documentguidingtheworkonagriculture,ruralareas,andfarmersissuedbythecentralgovernmentdemonstratedthegovernment’sintentiontoattachgreaterimportancetoagricultureandstrengthenagriculturaldevelopment.Inabidtodoso,thegovernmentwillstepupeffortstoenhanceagriculturalscienceandtechnologyandprovidemoreequipment,drivetotacklekeyproblemsofkeyandcoretechnologiesinagriculture,andmakeagriculturalmachinerymoreintelligentandautomated.Intermsofindustryconcerns,theupgradeandconversiontoproductsthatmeettheNationalEmissionStandardIVraisechallengestoenterprises.Attheendof2022,thecentralgovernmentappropriatedRMB211.5billionofagriculture-relatedtransferpaymentfundsfor2023inadvance,includingRMB14.5billionforsubsidiesofagriculturalmachineryprocurementandapplication.Thecentralgovernmentallocatedsubstantivefundsforsubsidiesandimplementedpoliciestostrengthenagricultureandbenefitfarmers,indicatingthatthestatewillcontinuetoattachgreatimportancetoagriculturalmechanization. In terms of industrial development, after a ten-year golden period of development, since 2016, the entire agriculturalmachineryindustryhasenteredaperiodofdeepadjustmentthathaslastedforyears.Althoughshort-term explosivegrowthwasseenin 2020,itwentdownagain, enteringaphaseofupdatingexistingmachineryfromthegrowthofnewmachineprocurement.2022,thefirstyearofswitchingtotheNationalEmissionStandardIVforNon-roadVehicles,theagriculturalmachineryindustryfacedpressuressuchastheshrinkingofthedemandside,prematuremarketoverdraft,participationoftycoonsfromotherindustries,andtheimpactofnewenergymarketonthetraditionalmarket.Currently,multiplesegmentedscenariosstillrequireall-weatherandcontinuousinputandoutput,whichisanadvantageofdieselenginesthatcannotbesubstitutedinashorttime.Furthermore,newdevelopmentopportunitieshavebeenbroughtaboutintheprocessofnationalstrategic deployment and acceleration of transformation and upgrade. Therefore, the traditional market of China'sdieselengineandgasolineengineindustriespresentapatternofmultiplecompetitions.Asthestateadopts increasinglystrictenvironmentalprotectionpolicyandtheemissionstandardscontinuetoupgrade,thecoretechnologyandkeypartsofinternalcombustionengineswillberapidlydevelopedandapplied,andtheresearch,development,promotingandapplicationofenvironmentallyfriendlyandefficientdieselenginesandgasolineengines will become the mainstream trend, which promotes the wide use of the fuel injection system,high-efficiencysuperchargerandhigh-efficiencyafter-treatment.Inthenewnormal,theinternalcombustionengine industry and agricultural machinery industry will improve the industry's capability of independent innovation,supportthewholemachinedevelopment,andorganizeandimplementgreenmanufacturingandintelligentmanufacturing,soastoimprovetheoverallstrengthoftheindustry.Themarketshareofdieselandgasolineenginesisgraduallyconcentratedinafewlarge-scaleenterpriseswithtechnicalandcapitalstrength.Thepresentdevelopmenttrendofinternalcombustionengineindustryisasfollows:(1)energysavingandemissionreduction;(2)intelligentmanufacturing;(3)lightweight.Medium-andlow-endinternalcombustionengineswithlowtechnicalcontentandlowaddedvaluewillbegraduallysqueezedoutofthemarket.Theupgrade of emission standards and the market's demand for high-end products will eliminate those small enterpriseswithlowlevelofresearchanddevelopmentorlesstechnologyreserves.(3)Salesofinternalcombustionengineindustryin2022 Thetotalvolumeofthemarketdroppedsignificantlyduetofactorssuchassubsidypolicychange,tightsupplychain, upgrading of the National Emission Standard IV for Non-road Vehicles, and intensified existing competition.Thetotalsalesofinternalcombustionenginesin2022were43,154,700units,adecreaseof14.51%comparedto2021.Thetotalsalesofdieselenginesfortheyearwere4,286,600units,downby29.82%yearonyear.Specifically,837,200enginesforconstructionmachinery,1,222,300enginesforagriculturalmachinery,39,700enginesforshipbornemachinery,and311,700enginesforelectricitygenerationweresold.Thesalesofgasolineinternalcombustionengineswere38,856,000,adropof12.39%yearonyear.Onthewhole,theinternalcombustionenginemarketshowedadecliningtendencyforthewholeyear,withtheconstructionandagriculturalmachinerystillshowinganadjustmenttrend.Theagriculturalmachineryindustryfacedamajorshakeout,focusingontheswitchingofproductsthatmeettheChinaIVemissionstandardsfornon-roadmobilemachinery.Accordingtotheinformationonthesubsidiesofagriculturalmachineryprocurement,themainterminalproductsthatneedtobeupgradedtomeetChinaIVemissionstandardsarelargeandmediumtractors,wheatharvesters,forageharvesters,andsprayrod-typesprayers.ThemarketpaidmoreattentiontowhethertheycanbeadequatelyverifiedtomeetChinaIVemissionstandardsandwhethermassproductioncanberealized.Inthesecondhalfof2022,thesalesoflargeandmediumtractors,wheatharvesters,andcornharvesterspeaked,showingthatthetraditionaldemandcyclewasaltered. Intermsofthesegmentsoftheinternalcombustionenginemarket,in2022,897,300unitsofconstructionmachineryweresold,downby21.00%yearonyear;4,141,300unitsofagriculturalmachineryweresold,downby22.87%yearonyear;39,700unitsofshipbornemachineryweresold,downby1.18%yearonyear;1,253,000unitsofgeneratorsetsweresold,downby19.02yearonyear;and1,645,400unitsofhorticulturalmachineryweresold,downby34.15%yearonyear.Comparedwithlastyear,theyear-over-yeargrowthofallkindsofmachinerywasnegative. Duetotheimpactofinternationaltradeandthecharacteristicsoftheenterprisescale,theinternalcombustionengineindustrywassteadyandshowedapositivetrendonthewhole.In2022,thetotalvolumeofimportsandexportswasUSD30,086million,downby2.47%yearonyear;specifically,theimportvolumewasUSD8,803million,downby18.63%yearonyearandtheexportvolumewasUSD21,284million,upby6.27%yearonyear.IIPrincipalActivityoftheCompanyintheReportingPeriod 1.PrincipalOperationsoftheCompany WemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasoline engines under the brand "Robin". Our products are mainly used in agricultural machinery, small engineeringmachinery,lightcommercialvehicles,generatorsetsandshipbornemachineryandotherfieldsclosely relatedtopeople'slivelihood. IntheReportingPeriod,therewerenomajorchangesintheCompany'scorebusinessandmainproducts.2.MainProductsoftheCompany Ourmainproductsaredividedintotwocategories:dieselenginesandgasolineengines.Thedetailsareasfollows:
(1)R&Dmodel Wehaveestablishedaninnovativetechnologymanagementsystemforinternalcombustionenginebasedonmarketdemandandforward-lookingtechnologies.Priortothenewproductsornewtechnologiesdevelopment,themarketingdepartmentfirstconductsmarketassessmentandcustomerresearch,andtheninitiatesaprojectaccordingtotheforecastedmarketdemand;thetechnologycenterconductsdevelopmentaccordingtotheprojectmaterials,andcollectsfeedbackinformationfromthemarketandcustomersinrealtimeduringthedevelopmentprocesstoensuretechnologyleadershipandproductsuitability. (2)Purchasingmodel Weadoptthe"purchase-to-order"purchasingmodel.TheERPsystemconvertsthesalesorders,thesalesplandevelopedbythesalesdepartmentandtheproductionplandrawnupbytheproductiondepartmentintothedemandofpartsneeded,andthepurchasingdepartmentorganizesthepurchaseaccordingtosuchdemand.Meanwhile, the purchasing department makes a plan to guide parts procurement according to the salesdepartment'ssalesplan,andprovideittothesupplier,andurgethesuppliertoprepareforthegoods.(3)Productionmodel Weadoptthe"make-to-order" production managementmodel.The sales departmentmakes sales plansfordifferentstagesaccordingtotheordersinhand,salesdatainpreviousyears,marketdemandjudgmentandfeedback of existing customers' purchasing intentions. The Company's production department makes the productionplanaccordingtothesalesordersdisplayedintheERPsystem,thesalesplanmadebythesalesdepartmentandthereserveinventorydemand,andorganizestheproductiontaskinstrictaccordancewiththeplan.Duringtheproductionprocess,thequalityassurancedepartmentarrangesregularinspectiontoensuretheproductquality. (4)Salemodel Weadoptthesalesmodelof"directselling+distribution",i.e.thedirectsellingmodelforthemainenginefactory, andthedistributionmodelfortheindividualcirculationmarketrepresentedbyfarmersandoverseasmarket.4.TheCompany'spositioninthemarket WemainlyspecializeintheR&D,manufactureandsalesofdieselenginesunderthebrand"Changchai"andgasolineenginesunderthebrand"Robin".Uptonow,wehavesuccessfullydevelopedanumberofadvancedcoretechnologieswithindependentintellectualpropertyrights.Intermsofdieselengine,accordingtothestatisticsof China InternalCombustion EngineIndustryAssociation (CICEIA), asthe largestsmall-andmedium-sizedsingle-cylinderdieselenginemanufacturerintheagriculturalmachineryindustryofChina,wehavemaintainedahighmarketshareofsingle-cylinderengines,andourmarketshareofsingle-cylinderdieselenginesofsomepowerrangeshasrankedfirstinChina.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe"Changchai"brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights.5.KeyPerformanceDrivers (1)Nationalpolicydriver Inrecentyears,variousdepartmentsofthestatehaveintroducedaseriesofpreferentialpoliciestoencouragethedevelopmentofinternalcombustionengineindustry.Intermsofagriculturalmachinery,thecentralgovernmenthastakensolvingtheproblemsrelatingto"agriculture,ruralareasandfarmers"asthetoppriorityoftheworkofthePartyandthegovernment,andissuedaseriesofpoliciestobenefitfarmers,creatingagoodatmosphereforpromotingthedevelopmentofagricultureandeconomyandsocietyinruralareas;intermsofconstructionmachinery,thestrategyof"westerndevelopment",the"eightverticalandeighthorizontal"high-speedrailwaynetworkplanandthepolicyof"newruralconstruction"haveallcreatedagoodpolicyenvironmentfortheapplicationofinternalcombustionengineindownstreamconstructionmachinery.(2)IndustrialchainsynergyempowersthesustainabledevelopmentoftheCompanyWehavebuiltourowncastingmanufacturingandprocessingplantstomeettheuserequirementsofsomedieselengineparts.Intermsofproductionandquality,wehaveformedasignificantsynergywithitsowninternalcombustionengineassemblyteam.OurcastingmanufacturingteamandinternalcombustionengineassemblyteamworktogethertoformamutuallyreinforcingpositivefeedbacklooptoassisttheCompanyinintegratingtheinternalcombustionengineindustrychainandbuildingdifferentiatedindustrybarriers.Intermsofcollaborative production,thereductionofexternalpurchaseisofgreatsignificancefortheCompanytoreduceprocessflow,reduceintermediateloss,improveproductionefficiency,shortendeliverytimeandincreasepurchasingbargaining power.Intermsofqualitycoordination,theself-builtfoundrycanimproveourqualitycontrolofpartstoimprovetheyieldandreliabilityofinternalcombustionengines. (3)StableandefficientR&Dteam Wehaveexperiencedtechnicalmanagementteamandperfecttechnicalsupportteam.OurkeytechnicalpersonnelandR&DmanagementpersonnelhavebeenengagedininternalcombustionengineR&Ddesign,productionandmanufacturingforalongtime.Withprofoundprofessionalknowledgeandrichpracticalexperience,theycanmakestrongforward-lookingandscientificjudgmentinthemarketdirectionandtechnicalroute.Also,wehaveestablishedaneffectivetrainingmechanismtofostertalentedpersonsforthefollow-upR&D.(4)Well-knownbrandwithmanywell-knowncustomers TheCompany,formerlyknownasChangzhouDieselEngineFactory,isanationalindustrialenterprisewithahistoryofahundredyearsandoneoftheearliestprofessionalinternalcombustionenginemanufacturersinChina.Our diesel and gasoline engines, as power sources of agricultural machinery, construction machinery and commercialvehicles,showexcellentperformanceinpowerrange,reliability,powerperlitre,noisecontrolandemissionstandards,andhavebeenrecognizedbycustomers.Wemaintainedalong-termpartnershipwithmajorcustomers,withcumulativepartnershiptimeexceeding15years.ManymainengineplantcustomersoftheCompanyarewell-knownenterprisesintheagriculturalmachineryindustry,withtheirmarketsharesbeingattheforefrontofthemarket. IIICoreCompetitivenessAnalysis 1.AdvantagesinBrand Changchaiisanationalindustrialenterprisewithahistoryofoveronehundredyears.Itisoneoftheearliestprofessionalmanufacturersofinternalcombustionengines inChina.Thebrand"Changchai" is theearliestdomestic trademark of production goods known as China's well-known trademarks. The diesel engine of"Changchai"brandisChina'sbrand-nameproduct.TheenterprisehasbeencertifiedbyISO9001andIATF16949quality systems, ISO14001 environmental management system, IATF16949 automotive product qualitymanagementsystem,andaccessedtothenationalexport-freeenterprisequalification.Changchaiwashonorablyranked among“theTopOne HundredChineseEnterprises inEngineeringIndustry”and“ChinaPacesetterEnterpriseofIndustrialIndustry”forseveraltimes,andwasawardedthehonorarytitleof“State-levelEnterprise ofObservingContractsandKeepingPromise”,“China'sAgriculturalMachineryPartsandComponentsLeadingEnterprises”,“China'sAgriculturalMachineryAAACreditEnterprise”,“QualityManagementExcellenceAward ofJiangsuProvince”and“MayorQualityAwardofChangzhouCity”.TheCompanyhasbeenamongthe10users’mostsatisfiedleadingbrandsin“JingGeng”competitionformanyyears.In2022,theCompanywasawardedhonorarytitlessuchasTop500MachineryIndustryInChina,NationalDemonstrationEnterpriseofProductandServiceQualityIntegrity,NationalQualityLeaderofInternalCombustionEngineIndustry,NationalQualityLeadingBrandofInternalCombustionEngineIndustry,ProductwithGuaranteedQualityandReputationinChina,StableQualifiedProductinNationalQualityInspection,TopTenEnterprisesofAgriculturalMachineryandEquipmentIndustryinJiangsuProvince,andThreeStarEnterpriseinChangzhou.Formanyyears,intheprocessofachievingsteadyeconomicdevelopmentoftheenterprise,wedevelopedinasoundmannerandcultivatedthe“Changchai”brand,afamoussmalldieselenginebrandofChinawithindependentintellectualpropertyrights. 2.AdvantagesinTechnology TheCompanyhasastate-leveltechnologycenterandpost-doctoralresearchstation,andaresearchcenterofsmallandmedium-powerinternalcombustionengineengineeringandtechnologyinJiangsuProvince.Currently,itismainlyengagedinproductionofsmallandmedium-powersingle-cylinderandmulti-cylinderdieselengine.Ithasacompleteproductrange,awidepowerlevelcoverage,ahighreputationandintellectualpropertyrightsforitsmainproducts.DuringtheReportingPeriod,theCompanyobtainedtheRe-assessmentCertificateoftheNationalEnterpriseTechnologyCentre,andsevenmodelsincludingEH36andZN490BwererecognizedasHigh-techProductsofChangzhouCity.Inaddition,theCompanywonthehonoroftheresearchanddevelopmentbaseoftheintelligentandlightweightdieselengineoftheagriculturalmachineryandequipmentindustryinJiangsuProvince. DuringtheReportingPeriod,theCompanywasgranted23patents.Asoftheendof2022,ithasatotalof159validpatentsathomeandabroad,including13inventionpatents. 3.AdvantagesinMarketing Changchaihasbuiltupasalesservicenetworkcoveringthewholecountry,with5salesbusinessunits,26salesservicecenters,and698designatedmaintenancestations.Inaddition,inordertomeettheNationalEmissionStandardIVforNon-RoadVehiclesandprovidebetterafter-salesserviceforcustomers,aservicemonitoringplatformwithChangchaicharacteristicshasbeenputinplace.Withaperfectdieselsalesservicenetworksystem,theCompanyisabletoprovidehighquality,efficientandtimelyservicesforcustomers.IVCoreBusinessAnalysis 1.Overview In2022,thedomesticandinternationalpoliticalandeconomicsituationwascomplexandvolatile.China’seconomycontinuedtofacemultiplepressuressuchasshrinkingdemand,supplyinterruptions,andweakenedexpectations.Thetotalvolumeofthemarketdroppedduetofactorssuchassubsidypolicychange,tightsupplychain, upgrading of the National Emission Standard IV for Non-road Vehicles, and intensified existing competition.Facingthenewnormalofthecomplicatedandvolatiledevelopmentanddecliningtrendoftheagriculturalmachineryindustry,theCompanyunitedallemployeesandfurtherfocusedonproducts,market,andqualitytoseekprogresswhilemaintainingstabilityandinnovation.TheCompanysparednoefforttoadvancetheimplementationoftheannualoperationpolicyandobjectives,effectivelycombinedproductoperationandcapitalmanagement,andacceleratedproductionupgradeandindustrialchainexpansiontomaintainastableandorderlydevelopmenttendency.DuringtheReportingPeriod,theCompanysoldapproximately607,300dieselengines,gasolineenginesandgeneratorsets,includingapproximately147,000gasolineengines,generatingtotalsalesrevenueofRMB2.182billion,adecreaseof11.03%year-on-year. Intermsofproductdevelopmentandsupport,theCompanycompletedthedevelopmentandsupportcertificationformainstreammodelsofsingle-cylinderandmulti-cylinderenginesthatmettheNationalEmissionStandardIVforNon-roadVehiclesandlaunchedthemtothemarketthroughmassproduction.TheCompanyorderlyadvancedtheextensionofmulti-cylinderengines’upperandlowerpowerranges.Thehigh-powermulti-cylinderengineswerelaunchedtothemarketthroughmassproductionaftercompletingsupportverificationandtheoptimizedmulti-cylinderproductswithsmallcylinderdiametersmadebreakthroughsintermsofthesupportingfields.Inaddition,thedevelopmentofthedieseloutboardenginemadephasedprogressandpassedRCD,MEDEUcertification,andCCScertification. Intermsofmarketservices,domesticandoverseassalesmaintainedthestabilityofthefoundationandexpandednewmarkets.Thesingle-cylinderorderlycompletedtheswitchofaccessoriesthatmettheNationalEmissionStandard IV for Non-Road Engines of main engine factories and promoted the sales of products in thenon-agriculturefieldsbyactiveguidanceandnetworkoptimization.Intermsofmulti-cylinderengines,themarket shareofaccessoriesinthekeyfieldswasincreased.Inaddition,theforeigntrademarketmaintainedsalesgrowthincoremarketsegmentsandmadebreakthroughsintheemergingmarket.TheCompanysteppedupeffortstomanagetheappraisalsofservicesitesintheserviceprocessandfurtheroptimizedtheresourceallocationoftheservicesites.TheCompanycompletedthefunctioniterationanddevelopmentoftheremotemonitoringplatformofengines,whichwillprovideeffectivetechnicalsupportfortheCompany’sproductdesignanddevelopmentandtheafter-salesservicesofrepair,replacementandreturn. Intermsofqualitymanagement,theCompanysteppedupeffortstodevelopthequalitymanagementsystem,implementedthequalityresponsibilitysystem,strengthenedthequalitylosscontroloftheentireproductionandmanufacturing process, and effectively reduced quality loss. The Company organized to implement themanagementreview,internalreviewofthequalitysystem,productreview,andprocessreviewandproperlyadjustthecontentofthesystemdocumentsbasedonreality,andsuccessfullypassedtheannualexternalauditofthequalitymanagementsystem. Intermsofinternalmanagement,theCompanycontinuedtocarryoutthethree-yearactionofspecialsafetyrectificationofsafetyproduction,promotedthe“safetycode”inallrespects,madethehiddenriskscreeningand governance institutionalized and standardized, and successfully passed the ISO14001 environmental system supervisionandreviewduringtheyear.TheCompanyinitiatedthestandardimplementationofthemanagementsystemoftheintegrationof“informationtechnologyandindustrialization”withintheyearandsuccessfullypassedtheassessmentoftheAA-gradeintegrationof“informationtechnologyandindustrialization”management system.DuringtheReportingPeriod,theCompanyadoptedmultiplemeasurestoreducecostsandincreaseefficiencytocopewiththecontinuousriseinrawmaterialpricesathomeandabroad.GreateffortsweremadetoresolutelycrackdownoninfringementsinthemarketandtheCompany’sintellectualpropertywaseffectivelysafeguardedthroughinnovativemeasures. In the Reporting Period, the Company acquired 41.5% of the equity of Zhenjiang Siyang Diesel EngineManufacturing Co., Ltd. by bidding. On 16 May 2022, Zhenjiang Siyang convened a general meeting ofshareholders,ameetingoftheBoardofDirectorsandameetingoftheSupervisoryCommitteetore-electmembersfortheBoardofDirectors,theSupervisoryCommitteeandmanagement.ZhenjiangSiyanghasbeenincludedintheconsolidatedfinancialstatementsoftheCompany. 2.RevenueandCostAnalysis (1)BreakdownofOperatingRevenue Unit:RMB
 |