StockCode:000570,200570 StockName:ChangchaiA,ChangchaiB AnnouncementNo.:2017-017 CHANGCHAICOMPANY,LIMITED SEMI-ANNUALREPORT2017(ABSTRACT) IImportantNotes ThisAbstractisbasedonthefulltextoftheSemi-AnnualReport.Inorderforafullunderstandingofthe operatingresults,financialconditionandfuturedevelopmentplanningoftheCompany,investorsarekindly remindedtoreadthefulltextcarefullyonthemediadesignatedbytheChinaSecuritiesRegulatoryCommission (the“CSRC”). This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandingsbetweenthetwoversions,theChineseversionshallprevail. Modifiedauditor’sopinion: □Applicable√Notapplicable Proposalforprofitdistributiontoorconvertingcapitalreserveintosharecapitalforcommonshareholdersforthe ReportingPeriod,whichhasbeenconsideredandapprovedbytheBoard: □Applicable√Notapplicable TheCompanyplansnottodistributecashdividendsorbonussharesorconvertcapitalreserveintosharecapital. ProposalforprofitdistributiontopreferenceshareholdersfortheReportingPeriod,whichhasbeenconsidered andapprovedbytheBoard: □Applicable√Notapplicable IICompanyProfile 1.StockProfile Stockname ChangchaiA,ChangchaiB Stockcode 000570,200570 Stockexchange ShenzhenStockExchange Contactinformation BoardSecretary SecuritiesRepresentative Name HeJianjiang Officeaddress 123HuaideMiddleRoad,Changzhou,Jiangsu,China Tel. （86）519-68683155 E-mail cchjj@changchai.com 2.KeyOperatingResults IndicatebytickmarkwhethertheCompanyneedstoretroactivelyrestateanyofitsaccountingdata. □Yes√No ReportingPeriod Sameperiodoflastyear +/-(%) Operatingrevenues(RMB) 1,308,106,180.92 1,163,660,721.69 12.41% Net profit attributableto shareholders ofthe 39,679,158.13 35,018,142.36 13.31% Company(RMB) Net profit attributableto shareholders ofthe Company before exceptional profit and loss 20,774,047.49 28,510,501.61 -27.14% (RMB) Net cash generated by operating activities 64,379,323.31 118,035,913.29 -45.46% (RMB) Basicearningspershare(RMB/share) 0.07 0.06 16.67% Dilutedearningspershare(RMB/share) 0.07 0.06 16.67% Weightedaveragereturnonequity(%) 1.71% 1.76% -0.05% EndofReportingPeriod Endoflastyear +/-(%) Totalassets(RMB) 3,814,165,961.66 3,724,857,266.71 2.40% Net assetsattributabletoshareholders ofthe 2,304,915,696.27 2,323,712,892.92 -0.81% Company(RMB) 3.ShareholdersandTheirHoldingsatPeriod-End Unit:share Totalnumberofcommonshareholdersat Total number of preference period-end 52,387shareholders with resumed voting 0 rightsatperiod-end Top10shareholders Nameofshareholder Natureof Shareholdin Totalshares Restricted Pledgedorfrozenshares shareholder gpercentage held sharesheld Status Number State-ownedAssetsSupervision andAdministrationCommission Onbehalfof 30.43% 170,845,236 ofChangzhouMunicipal government People’sGovernment KGIAsiaLimited Foreign 0.57% 3,219,845 corporation BeijingShenZhouMu InvestmentFundManagement Other 0.45% 2,543,395 Ltd.―HongyanShenZhouMu Fund TibetShenZhouMuFund ManagementCo.,Ltd.―Tianlu Other 0.35% 1,971,518 SecuritiesInvestmentPrivate FundNo.10 ZhongOuAsset Management-Bankof China-PingAnLifeInsurance- Other 0.34% 1,899,930 ZhongOuAssetManagement- PingAnLifeInsurance EntrustedInvestmentNo.1 AssetManagementPlan VanguardTotalInternational Foreign 0.29% 1,626,592 StockIndexFund corporation GuoDongZeQuanInvestment ManagementCo.,Ltd.－Ze Other 0.29% 1,616,500 QuanWealthManagerSecurities InvestmentFundNo.2 TibetShenZhouMuFund ManagementCo.,Ltd.―Tianlu Other 0.29% 1,613,081 SecuritiesInvestmentPrivate FundNo.1 Domestic HuangGuoliang 0.27% 1,528,891 individual AVIVA-COFCO－Dividends－ Other 0.27% 1,504,600DividendsonPersonalInsurance It is unknown whetherthere was any associated relationshipRelated or acting-in-concert parties amongamongthetoptentradableshareholdersandamongthetoptenshareholdersabove shareholdersnotsubjecttotradingmoratorium,orwhetherthey arepersonsactinginconcertasdescribedbyMeasuresforthe AdministrativeofDisclosureofShareholderEquityChanges. Shareholder Beijing Shen Zhou Mu Investment Fund ManagementLtd.―HongyanShenZhouMuFundheldatotalof 2,543,395sharesintheCompanythroughacommonsecuritiesShareholders conducting securities marginaccountandaclientaccountofcollateralsecuritiesformargintrading trading,representingastakeof0.45%,ofwhichthesharesinthe clientaccountofcollateralsecuritiesinSouthwestSecuritiesCo., Ltd.formargintradingwere968,100innumber,a0.17%stakein theCompany.4.ChangeofControllingShareholderorActualControllerinReportingPeriodChangeofthecontrollingshareholderintheReportingPeriod:□Applicable√NotapplicableThecontrollingshareholderremainedthesameintheReportingPeriod.ChangeoftheactualcontrollerintheReportingPeriod:□Applicable√NotapplicableTheactualcontrollerremainedthesameintheReportingPeriod.5.NumberofPreferenceShareholdersandShareholdingsofTop10ofThem□Applicable√NotapplicableNopreferenceshareholdersintheReportingPeriod.6.Corporatebonds Arethereanycorporatebondspubliclyofferedandlistedonthestockexchange,whichwereunduebeforethe approvaldateofthisReportorwereduebutcouldnotberedeemedinfull No. IIIPerformanceDiscussionandAnalysis 1.PerformanceReviewforReportingPeriod IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries No. Forthefirsthalfof2017,wesold457,800unitsofdieselenginesandgasolineenginesandgeneratorsets,up 0.66%comparedtothesameperiodoflastyear.WeachievedasalesincomeofRMB1,308,106,180.92,up 12.41% from the same period of last year.And the net profit attributable to our shareholders stood at RMB39,679,158.13,up13.31%onayear-on-yearbasis. IntheReportingPeriod,theAgriculturalMachineryIndustrycontinuedtofacethedualpressuresofrisingcosts andovercapacity.Theagriculturalmachinerysectorwasingravedifficulties,withstricteremissionrulesfor dieselengines,cutsinsubsidiesforfarmmachinery,fallinggrainpricesandthelowpurchasingpoweroffarmers. Despitethegeneralovercapacityonthesingle-cylinderdieselenginemarket,theCompanymanagedtoachievean increaseinboththeproductionandsalesvolumesofthisproductandmaintainedaleadingpositioninthis sub-sector.Asformulti-cylinderdieselengines,thesalesvolumewentdowncomparedtothesameperiodoflast yearduetotheweakmarketdemand,butthesalesrevenuerosebecauseofhighersales.Meanwhile,duetothe Company’seffortsinexpandingmarketopportunitiesathomeandabroad,thesalesvolumeofplantprotection machinerygrewfast,theCompany’sproductssawanincreasedsalesvolumeinemergingmarkets,andtheexport revenueregisteredayear-on-yeargrowth.ThisyearChangzhouFujiChangchaiRobinGasolineEngineCo.,Ltd. Sold79,200unitsofgasolineenginesandbecameanewprofitgrowthpoint.Tosumup,intheReportingPeriod, thesalesrevenue increasedwhile thenetprofitbeforeexceptional profitandloss wentdown significantly comparedtothesameperiodoflastyearbecauseofrisinginrawmaterialpricesandtheappreciationofRMBand thedeclineingrossprofitmargin. 2.MattersRelatedtoFinancialReport (1)ChangesinAccountingPolicies,AccountingEstimationsandMeasurementMethodsComparedtoLast AccountingPeriod √Applicable□Notapplicable AspertherevisedAccountingStandardNo.16forBusinessEnterprises―GovernmentalSubsidies(CK[2017] No.15)unveiledbytheMinistryofFinance,theCompanyappliedtheprospectiveapplicationmethodtothe governmentalsubsidiesexistingonJanuary1,2017andadjustednewgovernmentalsubsidiesarisingbetweenthat dateandtheeffectivedateofthesaidrevisedstandardaccordingtothisstandard.ThechangesinAccounting PolicieshasnoeffectsonnetassetsonJune30,2017andonnetprofitsofPreviousyears. (2)RetroactiveRestatementsduetoCorrectionofSignificantAccountingErrorsinReportingPeriod □Applicable√Notapplicable Nosuchcases. (3)ChangesinScopeofConsolidatedFinancialStatementsComparedtoLastAccountingPeriod √Applicable□Notapplicable Theconsolidationscopeofthe ReportingPeriod includedtheCompany(as theparentcompany) andfive subsidiaries,onemoresubsidiarythanthelastaccountingperiod,becauseChangzhouFujiChangchaiRobin GasolineEngineCo.,Ltd.becameawholly-ownedsubsidiaryoftheCompanyduringtheReportingPeriod, whichhasbeenconsolidatedsinceJanuary20,2017.