中通客车(000957) - 2019 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides important notices, the full table of contents, and definitions of key terms used in the report, ensuring clarity and completeness Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no material risks affecting operations and no plans for dividend distribution or capital increase from reserves - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[3] - No special significant risks materially affecting the company's production and operations during the reporting period[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the complete report structure, covering all chapters from important notices and company profile to financial reports and reference documents, providing navigation for investors - The report's table of contents clearly lists eleven sections, including important notices, company profile, business overview, management discussion and analysis, significant events, share changes and shareholder information, preferred shares, directors, supervisors, senior management, corporate bonds, financial reports, and a catalog of reference documents[7] Definitions This section defines common terms used in the report, including company name, regulatory bodies, legal documents, currency units, and reporting period, ensuring accurate understanding of the content Major Definitions During the Reporting Period | Definition Item | Definition Content | | :--- | :--- | | Company, the Company | Zhongtong Bus Holding Co., Ltd | | CSRC | China Securities Regulatory Commission | | Company Law | Company Law of the People's Republic of China | | Articles of Association | Articles of Association of Zhongtong Bus Holding Co., Ltd | | Yuan, Ten Thousand Yuan | RMB Yuan, RMB Ten Thousand Yuan | | Reporting Period | January 1, 2019 - June 30, 2019 | Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of key accounting data and financial indicators for the reporting period Company Profile Zhongtong Bus Holding Co., Ltd., stock code 000957, is listed on the Shenzhen Stock Exchange, with Li Shupeng as its legal representative Company Basic Information | Stock Abbreviation | Stock Code | Stock Exchange | Chinese Name of the Company | Chinese Abbreviation (if any) | Foreign Name (if any) | Foreign Name Abbreviation (if any) | Legal Representative of the Company | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhongtong Bus | 000957 | Shenzhen Stock Exchange | Zhongtong Bus Holding Co., Ltd | Zhongtong Bus | ZHONGTONG BUS HOLDING CO.,LTD | ZHONGTONG BUS HOLDING CO.,LTD | Li Shupeng | Contact Persons and Contact Information The company provides contact details for Board Secretary Wang Xingfu and Securities Affairs Representative Zhao Lei, including address, phone, fax, and email, for investor communication Company Contact Information | | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Wang Xingfu | Zhao Lei | | Contact Address | No. 261 Huanghe Road, Economic Development Zone, Liaocheng City, Shandong Province | No. 261 Huanghe Road, Economic Development Zone, Liaocheng City, Shandong Province | | Phone | 0635-8325577 | 0635-8322765 | | Fax | 0635-8322166 | 0635-8328905 | | Email | lckwxf@sohu.com | www_957@163.com | Other Information The company's registered address, office address, postal code, website, email, and information disclosure channels remained unchanged during the reporting period, consistent with the 2018 annual report - The company's contact information and information disclosure locations remained unchanged during the reporting period, consistent with the 2018 annual report[14][15] Key Accounting Data and Financial Indicators In the first half of 2019, the company's operating revenue increased by 37.08% to 3.292 billion yuan, and net profit attributable to shareholders increased by 7.75% to 32.93 million yuan, with operating cash flow significantly improving to 808.22 million yuan Key Accounting Data and Financial Indicators for the First Half of 2019 | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,291,790,014.82 | 2,401,345,517.82 | 37.08% | | Net Profit Attributable to Shareholders of Listed Company | 32,930,612.69 | 30,562,017.46 | 7.75% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 19,876,138.77 | -5,359,594.21 | - | | Net Cash Flow from Operating Activities | 808,224,254.31 | -304,107,799.77 | - | | Basic Earnings Per Share (Yuan/Share) | 0.0555 | 0.0515 | 7.77% | | Diluted Earnings Per Share (Yuan/Share) | 0.0555 | 0.0515 | 7.77% | | Weighted Average Return on Net Assets | 1.21% | 1.09% | 0.12% | | | Current Reporting Period End (Yuan) | Prior Year End (Yuan) | Change from Prior Year End | | Total Assets | 11,645,223,619.15 | 12,247,211,071.74 | -4.92% | | Net Assets Attributable to Shareholders of Listed Company | 2,735,846,312.11 | 2,711,101,920.71 | 0.91% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[17][18] Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the first half of 2019 amounted to 13.0545 million yuan, primarily from government subsidies, positively impacting net profit after tax Non-Recurring Gains and Losses and Amounts for the First Half of 2019 | Item | Amount (RMB Yuan) | | :--- | :--- | | Government subsidies recognized in current profit and loss (excluding government subsidies closely related to the company's normal operations and enjoyed at fixed or quantitative standards) | 17,077,441.27 | | Gains and losses from changes in fair value of transactional financial assets, derivative financial assets, transactional financial liabilities, derivative financial liabilities, and investment income from disposal of transactional financial assets, derivative financial assets, transactional financial liabilities, derivative financial liabilities, and other debt investments, excluding effective hedge accounting related to normal business operations | -475,276.81 | | Other non-operating income and expenses apart from the above items | -967,858.91 | | Less: Income tax impact | 2,579,831.63 | | Total | 13,054,473.92 | - The company did not classify non-recurring gains and losses as recurring gains and losses during the reporting period[21] Company Business Overview This section outlines the company's core business activities, significant asset changes, and key competitive advantages, focusing on bus manufacturing and sales Main Businesses Engaged by the Company During the Reporting Period The company primarily develops, manufactures, and sells buses and components, offering a range of products from 5 to 18 meters for various markets, utilizing a direct sales model supplemented by distribution, and expanding both domestically and internationally - The company's main business is the development, manufacturing, and sales of buses and related components[24] - Bus products range from 5 to 18 meters in length, serving various market segments including highway, public transport, tourism, group, and school buses[24] - The company operates primarily on an order-driven, customized basis, with a sales model focused on direct sales supplemented by distribution, and is committed to developing both domestic and international markets[24] Significant Changes in Major Assets During the reporting period, there were no significant changes in the company's equity assets, fixed assets, intangible assets, and construction in progress, nor were there any major overseas assets Significant Changes in Major Assets | Major Asset | Explanation of Significant Change | | :--- | :--- | | Equity Assets | No significant changes | | Fixed Assets | No significant changes | | Intangible Assets | No significant changes | | Construction in Progress | No significant changes | - The company had no major overseas assets during the reporting period[26] Analysis of Core Competitiveness The company's core competitiveness stems from technological innovation, distinctive brand features, and a people-oriented corporate culture, driving leadership in energy-saving and new energy buses and fostering harmonious development - Technological Innovation: The company drives overall development through technological innovation, enhancing scientific and technological innovation capabilities, strengthening the development and industrialization of energy-saving and new energy buses, and promoting management innovation[26] - Distinctive Brand Features: The company prioritizes both new energy bus R&D and traditional bus fuel-saving technology innovation, adhering to a product R&D philosophy of "technology leadership, energy efficiency, convenient transportation, and green development," achieving significant results in environmental protection[27][28] - Corporate Culture: The company upholds the principle of "enriching employees, strengthening the enterprise, giving back to society, and growing with business partners," with a "people-oriented" core, stimulating employee enthusiasm and creativity, and building a harmonious enterprise[29] Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial position, investment activities, and risk factors during the reporting period Overview In the first half of 2019, despite industry headwinds from new energy policy adjustments, the company achieved 15.2% sales growth to 6,684 buses, 37.1% revenue growth to 3.29 billion yuan, and 7.8% net profit growth to 32.93 million yuan, excelling in new energy, tourism, and overseas markets, particularly in hydrogen fuel cell buses - In the first half of 2019, the bus industry experienced a 4.7% year-on-year decline in sales of buses over 6 meters due to the reduction in new energy policies, intensifying industry competition[32] Company Operating Performance in the First Half of 2019 | Indicator | Buses Sold (Units) | Revenue (Billion Yuan) | Net Profit (Million Yuan) | | :--- | :--- | :--- | :--- | | Current Reporting Period | 6684 | 3.29 | 32.93 | | Year-on-Year Growth | 15.2% | 37.1% | 7.8% | - The company optimized its product and market structure, new energy and tourism bus sales grew against the trend, and hydrogen fuel cell bus sales ranked among the top in the industry; overseas markets grew steadily driven by the "Belt and Road" initiative, with leading market shares in South America and Central/North Africa[32] - The company made progress in developing high-end products such as new public transport platforms, overseas front-engine midibuses, and the Marco Polo project, and achieved phased results in new energy consumption reduction, vehicle aesthetics, intelligent driving optimization, and fuel cell system development, maintaining its leading edge in the new energy bus sector[33] Analysis of Main Business Both the company's main business revenue and cost increased by over 37% year-on-year, primarily due to increased sales, with bus business gross margin slightly declining but overseas market gross margin significantly improving, and no major changes in profit composition Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,291,790,014.82 | 2,401,345,517.82 | 37.08% | Increase in sales revenue | | Operating Cost | 2,816,616,696.77 | 2,051,106,448.25 | 37.32% | Increase in sales revenue | | Financial Expenses | 99,465,155.80 | 59,184,807.44 | 68.06% | Increase in interest expenses and sales discounts | | Income Tax Expense | 10,534,910.81 | 4,332,729.26 | 143.15% | Increase in total profit | | R&D Investment | 135,669,602.82 | 98,258,717.54 | 38.07% | Increase in R&D investment for new products | | Net Cash Flow from Operating Activities | 808,224,254.31 | -304,107,799.77 | - | Receipt of national subsidy funds | | Net Cash Flow from Investing Activities | -172,470,152.98 | -215,084.79 | - | Investment in new energy upgrade projects | | Net Cash Flow from Financing Activities | -685,269,834.32 | 327,191,095.27 | -309.44% | More loan repayments | Main Business Composition | Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Bus | 3,253,618,782.06 | 2,803,773,196.97 | 13.83% | 38.26% | 38.46% | -0.88% | | By Product | | | | | | | | Bus | 3,222,750,529.58 | 2,776,036,028.20 | 13.86% | 38.77% | 38.97% | -0.88% | | Other | 30,868,252.48 | 27,737,168.77 | 10.14% | -0.28% | 1.01% | -10.16% | | By Region | | | | | | | | Domestic | 2,745,564,503.96 | 2,393,983,470.51 | 12.81% | 57.37% | 60.35% | -11.24% | | International | 508,054,278.10 | 409,789,726.46 | 19.34% | -16.52% | -22.98% | 53.74% | - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[36] Analysis of Non-Main Business The company had no non-main business analysis content during the reporting period, indicating its focus on core bus and component operations - The company had no non-main business analysis during the reporting period[38] Assets and Liabilities Status At the end of the reporting period, total assets decreased by 4.92% year-on-year, mainly due to reduced accounts receivable and long-term borrowings, while inventory significantly increased due to unsettled orders; certain assets were restricted Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year Period (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,862,478,069.55 | 15.99% | 1,933,594,077.03 | 16.05% | -0.06% | | | Accounts Receivable | 6,339,244,752.34 | 54.44% | 6,158,488,491.11 | 51.13% | 3.31% | | | Inventory | 454,826,895.40 | 3.91% | 252,273,950.65 | 2.09% | 1.82% | Mainly due to increased unsettled orders | | Short-term Borrowings | 1,395,170,986.81 | 11.98% | 1,488,235,054.52 | 12.36% | -0.38% | | | Long-term Borrowings | 297,000,000.00 | 2.55% | 418,505,881.20 | 3.47% | -0.92% | | - The measurement attributes of the company's major assets did not undergo significant changes during the reporting period[41] Asset Rights Restricted as of the End of the Reporting Period | Item | Book Value at Period End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 1,403,300,670.12 | Deposits, judicial freeze funds, etc | | Accounts Receivable | 1,730,157,900.00 | Pledged for loans | | Intangible Assets | 228,818,631.64 | Mortgaged for loans | | Notes Receivable | 59,665,236.00 | Notes pledged for exchange | | Total | 3,421,942,437.76 | | Investment Status Analysis The company had no significant equity, non-equity, or securities investments during the reporting period, but engaged in derivative investments (forward foreign exchange settlement and sales) with a realized loss of 4.0748 million yuan to hedge exchange rate risks, managed by strict risk control measures - The company had no significant equity investments, non-equity investments, or securities investments during the reporting period[42] Derivative Investment Status | Name of Derivative Investment Operator | Type of Derivative Investment | Initial Investment Amount (Ten Thousand Yuan) | Amount Purchased During Reporting Period (Ten Thousand Yuan) | Amount Sold During Reporting Period (Ten Thousand Yuan) | Actual Profit/Loss During Reporting Period (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | BNP Paribas | Forward foreign exchange settlement and sales | 1,372.64 | 13,751.7 | 15,124.34 | -407.48 | - Derivative investment funds originated from export receipts, primarily aimed at locking in exchange rate risks and avoiding speculative arbitrage; the company established the "Management System for Forward Foreign Exchange Settlement and Sales Hedging Business" to control risks such as exchange rate fluctuations, internal control, customer defaults, and collection forecasts[43] Significant Asset and Equity Sales The company did not undertake any significant asset or equity sales during the reporting period - The company did not sell significant assets or equity during the reporting period[45][46] Analysis of Major Holding and Participating Companies The company's main subsidiaries, including Liaocheng Zhongtong Light Bus, Shandong Tongsheng Refrigeration Equipment, and Zhongtong Bus (Hong Kong), operated normally; Xinjiang Zhongtong Bus is planned for sale due to declining performance, while Zhongtong Bus (Hong Kong) achieved profitability through exchange rate hedging Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liaocheng Zhongtong Light Bus Co., Ltd | Subsidiary | Development, manufacturing, sales, and technical services of light buses and special parts | 100,200,000.00 | 1,168,166,705.33 | 148,944,714.63 | 719,178,741.87 | 729,748.16 | 881,742.96 | | Xinjiang Zhongtong Bus Co., Ltd | Subsidiary | Bus production, overhaul, sales of auto parts, mechanical and electrical products | 49,000,000.00 | 135,421,106.96 | 53,405,026.28 | 25,426,771.52 | -6,130,107.65 | -7,694,679.61 | | Shandong Tongsheng Refrigeration Equipment Co., Ltd | Subsidiary | R&D, production, and sales of automotive air conditioners, marine air conditioners, other refrigeration equipment, and automotive electronic components | 31,000,000.00 | 208,830,596.70 | 74,877,653.55 | 124,779,137.42 | 16,843,219.73 | 13,514,291.77 | | Zhongtong Bus (Hong Kong) Co., Ltd | Subsidiary | Commodity trading | 7,886.00 | 274,805,096.85 | -19,137,106.78 | 300,729,734.50 | 16,021,799.78 | 13,378,202.82 | - Xinjiang Zhongtong Bus Co., Ltd.'s revenue and profit levels have declined year by year due to regional environment and industry trends, leading the company to plan for its equity sale[48] - Zhongtong Bus (Hong Kong) Co., Ltd. reported a profit during the reporting period, primarily due to the company locking in exchange rates, influenced by exchange rate fluctuations[48] Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[49] Forecast of Operating Performance for January-September 2019 The company did not issue any warnings or explanations regarding losses or significant changes in its operating performance for January-September 2019 - The company did not provide any forecast or warning regarding its operating performance for January-September 2019[49] Risks Faced by the Company and Countermeasures The company faces risks from new energy subsidy reductions, shrinking passenger transport markets, export market uncertainties, and rising costs, planning to respond by strengthening R&D, optimizing product structure, expanding overseas financing, and enhancing cost control - Risk 1: New energy subsidy reductions may lead to a decline in new energy bus market demand; Countermeasure: Strengthen R&D of new energy buses, provide adaptable products and comprehensive solutions, and increase market share and product added value[49] - Risk 2: The passenger transport market may continue to shrink due to high-speed rail, civil aviation, and private cars; Countermeasure: Strengthen market demand research, create competitive products, expand the layout of tourism and group products, and actively capture market segments such as high-end business vehicles and urban-rural integrated vehicles[49] - Risk 3: Export markets face uncertainties due to trade frictions, economic downturns, and exchange rate changes; Countermeasure: Monitor macroeconomic trends, formulate strategies to address trade protectionism, expand overseas financing capabilities, and focus on core markets[49] - Risk 4: Upgrades in automotive emission standards, fluctuations in raw material prices, and rising labor costs may increase company costs; Countermeasure: Implement cost reduction and efficiency improvement initiatives, strengthen cost control in key areas such as procurement, production, sales, and management expenses, and reduce costs through design optimization, quota management, and standardized procurement[50] Significant Events This section details significant events during the reporting period, including shareholder meetings, profit distribution plans, commitments, litigation, and related party transactions Information on Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period The company held its 2018 Annual General Meeting on June 12, 2019, with 42.03% investor participation, and relevant resolutions were disclosed on Cninfo; no requests for extraordinary general meetings from preferred shareholders with restored voting rights were made 2018 Annual General Meeting Information | Session | Meeting Type | Investor Participation Rate | Date of Meeting | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | | 2018 Annual General Meeting | Annual General Meeting | 42.03% | June 12, 2019 | June 13, 2019 | "Resolution Announcement of the 2018 Annual General Meeting" No.: 2019-025, information published on Cninfo http://www.cninfo.com.cn | - There were no requests from preferred shareholders with restored voting rights to convene an extraordinary general meeting during the reporting period[54] Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[54] Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company reported no commitments fulfilled or overdue unfulfilled by its actual controller, shareholders, related parties, acquirers, or the company during the reporting period - The company reported no commitments fulfilled or overdue unfulfilled by relevant parties during the reporting period[55] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited, thus no appointment or dismissal of accounting firms occurred - The company's semi-annual report was unaudited[56] Explanation by the Board of Directors and Supervisory Board on the "Non-Standard Audit Report" for the Current Reporting Period As the company's semi-annual report was unaudited, the Board of Directors and Supervisory Board did not need to provide an explanation for a "non-standard audit report" - The company had no non-standard audit report during the reporting period[57] Explanation by the Board of Directors on Matters Related to the "Non-Standard Audit Report" for the Previous Year The company had no explanation regarding matters related to the "non-standard audit report" for the previous year during the reporting period - The company had no explanation regarding matters related to the non-standard audit report for the previous year during the reporting period[57] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy and reorganization matters during the reporting period - The company did not experience any bankruptcy and reorganization matters during the reporting period[58] Litigation Matters The company is involved in significant litigation and arbitration cases totaling 323.092 million yuan due to overdue commercial acceptance bills endorsed and transferred, with no final court judgment yet, and the company is actively negotiating with relevant parties Significant Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (Ten Thousand Yuan) | Whether Estimated Liabilities Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | Execution Status of Litigation (Arbitration) Judgment | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | The company is involved in litigation because some commercial acceptance bills endorsed and transferred were not honored by the issuer upon maturity, and some final holders requested the company to bear endorsement payment responsibility. The total amount involved in litigation where holders requested the company to bear endorsement payment responsibility is 32,309.20 million yuan | 32,309.20 | No | Court has not yet rendered a final judgment | Court has not yet rendered a final judgment | Court has not yet rendered a final judgment | April 30, 2019 | Information published on Cninfo http://www.cninfo.com.cn, Announcement No.: 2019-020 | - The company had no other litigation matters during the reporting period[59] Penalties and Rectification Status The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[60] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period - The company reported no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period[61] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures implemented during the reporting period[61] Significant Related Party Transactions The company engaged in significant related party transactions for daily operations, including procurement of chassis, parts, and engines, and sales of buses and parts, all adhering to market pricing, within approved limits, and without harming the interests of the listed company or other shareholders Related Party Transactions for Purchase and Sale of Goods/Receipt and Provision of Services | Related Party | Relationship | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (Ten Thousand Yuan) | Proportion of Similar Transactions | Approved Transaction Limit (Ten Thousand Yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhongtong Automobile Industry Group Co., Ltd | Controlling Shareholder | Purchase of Goods or Receipt of Services | Chassis, parts, fuel | 153.05 | 0.06% | 500 | No | | Shandong Provincial Communications Industry Group Holding Co., Ltd | Largest Shareholder of Controlling Shareholder | Purchase of Goods or Receipt of Services | Vehicle parts | 3,573.10 | 1.34% | 12,500 | No | | Liaocheng Zhongtong New Energy Equipment Co., Ltd | Enterprise controlled by the same controlling shareholder and ultimate controlling party | Purchase of Goods or Receipt of Services | Parts | 57.84 | 0.02% | 200 | No | | Weichai Power Co., Ltd./Shaanxi Hande Axle Co., Ltd. Xi'an Branch | Enterprise controlled by the same related party | Purchase of Goods or Receipt of Services | Engines and other vehicle materials | 20,437.94 | 7.65% | 65,500 | No | | Shaanxi Fast Gear Co., Ltd | Enterprise controlled by the same related party | Purchase of Goods or Receipt of Services | Vehicle materials | 1,095.23 | 0.41% | 2,100 | No | | Shandong Tongyang Hydrogen Energy Power Technology Co., Ltd | Associate | Purchase of Goods or Receipt of Services | Fuel cell systems | 4,347.34 | 1.63% | 55,000 | No | | Liaocheng Zhongtong New Energy Equipment Co., Ltd | Enterprise controlled by the same controlling shareholder and ultimate controlling party | Sale of Goods or Provision of Services | Buses and parts | 794.37 | 0.24% | 1,800 | No | | Yangzhou Yaxing Motor Coach Co., Ltd | Enterprise controlled by the same related party | Sale of Goods or Provision of Services | Bus parts | 329.07 | 0.10% | 1,100 | No | | Total | -- | -- | -- | 30,787.94 | -- | 144,300 | -- | - Related party transactions were priced according to market principles or determined through bidding, did not harm the interests of the listed company or other shareholders, had no significant impact on the company's financial position and operating results, and did not affect the company's independence[65] - The company had no related party transactions involving asset or equity acquisition/disposal, joint external investments, or non-operating related party receivables/payables during the reporting period[66][67][68][69] Non-Operating Funds Occupied by Controlling Shareholder and its Related Parties from the Listed Company The company reported no non-operating funds occupied by its controlling shareholder or related parties from the listed company during the reporting period - The company reported no non-operating funds occupied by its controlling shareholder or related parties from the listed company during the reporting period[70] Significant Contracts and Their Performance The company had no significant entrustment, contracting, or leasing contracts during the reporting period, but provided several joint liability guarantees for its subsidiaries, totaling 91 million yuan, representing 3.33% of net assets, with 86 million yuan for guaranteed entities with a debt-to-asset ratio exceeding 70% - The company had no entrustment, contracting, or leasing situations during the reporting period[71][72][73][74] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (Ten Thousand Yuan) | Actual Occurrence Date (Agreement Signing Date) | Actual Guarantee Amount (Ten Thousand Yuan) | Type of Guarantee | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liaocheng Zhongtong Light Bus Co., Ltd | 30,000 | January 18, 2019 | 200 | Joint liability guarantee | 6 months | No | Yes | | Liaocheng Zhongtong Light Bus Co., Ltd | 30,000 | January 31, 2019 | 1,400 | Joint liability guarantee | 6 months | No | Yes | | Liaocheng Zhongtong Light Bus Co., Ltd | 30,000 | February 28, 2019 | 2,000 | Joint liability guarantee | 6 months | No | Yes | | Liaocheng Zhongtong Light Bus Co., Ltd | 30,000 | March 28, 2019 | 2,500 | Joint liability guarantee | 6 months | No | Yes | | Liaocheng Zhongtong Light Bus Co., Ltd | 30,000 | May 31, 2019 | 2,500 | Joint liability guarantee | 6 months | No | Yes | | Shandong Tongsheng Refrigeration Equipment Co., Ltd | 5,000 | May 09, 2019 | 500 | Joint liability guarantee | 6 months | No | Yes | | Total Approved Guarantee Limit for Subsidiaries During Reporting Period | 35,000 | -- | 9,100 | -- | -- | -- | -- | | Total Approved Guarantee Limit for Subsidiaries at End of Reporting Period | 35,000 | -- | 9,100 | -- | -- | -- | -- | | Proportion of Actual Guarantee Amount to Company's Net Assets | -- | -- | 3.33% | -- | -- | -- | -- | | Of which: Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% | -- | -- | 8,600 | -- | -- | -- | -- | - The company had no illegal external guarantees or other significant contracts during the reporting period[78][79] Social Responsibility Status The company and its subsidiaries are key polluting units, strictly adhering to environmental regulations, operating wastewater, exhaust gas, and noise treatment facilities, properly disposing of hazardous waste, and having emergency response plans, with environmental management system certification, but no specific disclosure on targeted poverty alleviation - The company and its subsidiaries are classified as key polluting units by environmental protection authorities[80] - The company constructs and stably operates wastewater treatment plants, exhaust gas treatment equipment, noise reduction and vibration isolation measures, and strictly disposes of hazardous waste in accordance with regulations, ensuring compliance with discharge standards[81][82] - The company pays pollution discharge fees and environmental taxes on time and in full, all projects undergo environmental impact assessments and receive approvals, and environmental protection requirements are implemented[82] - The company has developed emergency response plans for environmental incidents, regularly organizes publicity, training, drills, and reviews to enhance its ability to respond to sudden environmental pollution accidents[82] - The company has passed the environmental management system (GB/T24001-2016) recertification, and environmental information is publicly disclosed on the company's website[83] - No specific plans or achievements for targeted poverty alleviation were disclosed during the reporting period[84][85] Explanation of Other Significant Matters The company provides repurchase guarantees for customer auto mortgage loans, with an outstanding balance of 1,666.9144 million yuan as of the end of the reporting period, a matter approved by the shareholders' meeting - The company provides repurchase guarantees for customer auto mortgage loans, with an outstanding balance of 1,666.9144 million yuan, a matter approved by the shareholders' meeting[86] Significant Matters of Company Subsidiaries The company reported no significant matters concerning its subsidiaries during the reporting period - The company reported no significant matters concerning its subsidiaries during the reporting period[87] Share Changes and Shareholder Information This section details the company's share capital structure, any changes in shares, and the holdings of its major shareholders and actual controller Share Change Status The company's total share capital remained unchanged at 592,903,936 shares during the reporting period, with 100% being unrestricted shares, and no changes in the reasons, approvals, transfers, or repurchase progress of shares Share Change Status | | Number Before This Change (Shares) | Proportion Before This Change | Increase/Decrease in This Change (＋,－) | Number After This Change (Shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 11,232 | 0.00% | 0 | 11,232 | 0.00% | | 3. Other Domestic Shares | 11,232 | 0.00% | 0 | 11,232 | 0.00% | | Domestic Natural Person Shares | 11,232 | 0.00% | 0 | 11,232 | 0.00% | | II. Unrestricted Shares | 592,892,704 | 100.00% | 0 | 592,892,704 | 100.00% | | 1. RMB Ordinary Shares | 592,892,704 | 100.00% | 0 | 592,892,704 | 100.00% | | III. Total Shares | 592,903,936 | 100.00% | 0 | 592,903,936 | 100.00% | - Information regarding the reasons for share changes, approval status, transfer status, implementation progress of share repurchases, and their impact on financial indicators is not applicable for the reporting period[90] Securities Issuance and Listing Status The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[90] Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 63,257 ordinary shareholders, with Zhongtong Automobile Industry Group Co., Ltd. and Shandong Provincial State-owned Assets Investment Holding Co., Ltd. being the top two shareholders, holding 21.07% and 18.96% respectively, with no pledged or frozen shares - The total number of ordinary shareholders at the end of the reporting period was 63,257, with no preferred shareholders with restored voting rights[92] Shareholding Status of Ordinary Shareholders Holding 5% or More or Top 10 Ordinary Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Ordinary Shares Held at End of Reporting Period (Shares) | Number of Unrestricted Ordinary Shares Held (Shares) | Share Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhongtong Automobile Industry Group Co., Ltd | State-owned Legal Person | 21.07% | 124,941,288 | 124,941,288 | No pledge or freeze | | Shandong Provincial State-owned Assets Investment Holding Co., Ltd | State-owned Legal Person | 18.96% | 112,386,492 | 112,386,492 | No pledge or freeze | | China Highway Vehicle & Machinery Co., Ltd | State-owned Legal Person | 1.79% | 10,600,000 | 10,600,000 | No pledge or freeze | | Lin Shuyang | Domestic Natural Person | 0.67% | 3,970,000 | 3,970,000 | No pledge or freeze | | Peng Weiyan | Domestic Natural Person | 0.64% | 3,779,000 | 3,779,000 | No pledge or freeze | | Industrial and Commercial Bank of China - China Shipping Energy Strategy Mixed Securities Investment Fund | Other | 0.62% | 3,668,500 | 3,668,500 | No pledge or freeze | | Li Zhiyong | Domestic Natural Person | 0.50% | 2,985,100 | 2,985,100 | No pledge or freeze | | Zhang Shouxian | Domestic Natural Person | 0.50% | 2,945,900 | 2,945,900 | No pledge or freeze | | Chen Bo | Domestic Natural Person | 0.42% | 2,478,443 | 2,478,443 | No pledge or freeze | | Yuan Xuyu | Domestic Natural Person | 0.38% | 2,247,100 | 2,247,100 | No pledge or freeze | - Among the top ten shareholders, Zhongtong Automobile Industry Group Co., Ltd. and Shandong Provincial State-owned Assets Investment Holding Co., Ltd. have no associated relationship, and relationships with other shareholders are unknown[92][93] - The company's top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders did not engage in agreed repurchase transactions during the reporting period[93] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[94] - The company's actual controller remained unchanged during the reporting period[94] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[97] Information on Directors, Supervisors, and Senior Management This section provides details on the shareholdings and changes of the company's directors, supervisors, and senior management Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2018 annual report - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[99] Changes in Company Directors, Supervisors, and Senior Management The company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2018 annual report - The company's directors, supervisors, and senior management remained unchanged during the reporting period[100] Corporate Bond Information The company had no corporate bonds publicly issued and listed on a stock exchange that were not yet due or fully redeemed as of the approval date of the semi-annual report - The company had no corporate bonds publicly issued and listed on a stock exchange that were not yet due or fully redeemed as of the approval date of the semi-annual report[103] Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owner's equity, along with detailed notes on accounting policies and financial items Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[105] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for the first half of 2019, comprehensively presenting its financial position, operating results, and cash flow Consolidated Balance Sheet As of June 30, 2019, the company's consolidated total assets were 11.645 billion yuan, a 4.92% decrease from the end of 2018, with total liabilities at 8.909 billion yuan and total owner's equity at 2.736 billion yuan Key Data from Consolidated Balance Sheet (June 30, 2019 vs December 31, 2018) | Item | June 30, 2019 (Yuan) | December 31, 2018 (Yuan) | | :--- | :--- | :--- | | Monetary Funds | 1,862,478,069.55 | 1,901,704,251.41 | | Accounts Receivable | 6,339,244,752.34 | 7,130,725,618.89 | | Inventory | 454,826,895.40 | 513,234,647.67 | | Total Current Assets | 9,815,677,543.13 | 10,541,644,767.50 | | Fixed Assets | 1,112,822,264.04 | 1,139,382,352.79 | | Intangible Assets | 507,294,475.67 | 360,889,804.83 | | Total Non-Current Assets | 1,829,546,076.02 | 1,705,566,304.24 | | Total Assets | 11,645,223,619.15 | 12,247,211,071.74 | | Short-term Borrowings | 1,395,170,986.81 | 1,432,362,919.73 | | Notes Payable | 1,677,479,700.00 | 2,019,950,000.00 | | Accounts Payable | 3,385,372,525.31 | 3,048,042,489.72 | | Total Current Liabilities | 7,618,892,145.72 | 7,652,055,474.26 | | Long-term Borrowings | 297,000,000.00 | 878,122,760.42 | | Bonds Payable | 300,000,000.00 | 300,000,000.00 | | Total Non-Current Liabilities | 1,290,485,161.32 | 1,884,053,676.77 | | Total Liabilities | 8,909,377,307.04 | 9,536,109,151.03 | | Total Owner's Equity Attributable to Parent Company | 2,735,846,312.11 | 2,711,101,920.71 | | Total Owner's Equity | 2,735,846,312.11 | 2,711,101,920.71 | Parent Company Balance Sheet As of June 30, 2019, the parent company's total assets were 11.257 billion yuan, a 4.21% decrease from the end of 2018, with total liabilities at 8.602 billion yuan and total owner's equity at 2.655 billion yuan Key Data from Parent Company Balance Sheet (June 30, 2019 vs December 31, 2018) | Item | June 30, 2019 (Yuan) | December 31, 2018 (Yuan) | | :--- | :--- | :--- | | Monetary Funds | 1,539,814,893.45 | 1,346,198,244.04 | | Accounts Receivable | 6,248,838,969.56 | 7,049,509,366.04 | | Inventory | 386,884,167.31 | 451,680,045.76 | | Total Current Assets | 9,416,187,032.73 | 10,038,561,686.38 | | Fixed Assets | 990,822,592.60 | 1,014,400,082.67 | | Intangible Assets | 452,985,046.89 | 305,806,765.03 | | Total Non-Current Assets | 1,841,033,806.19 | 1,713,568,667.41 | | Total Assets | 11,257,220,838.92 | 11,752,130,353.79 | | Short-term Borrowings | 1,395,170,986.81 | 1,432,362,919.73 | | Notes Payable | 1,446,029,700.00 | 1,556,000,000.00 | | Accounts Payable | 3,463,017,932.02 | 3,241,645,656.69 | | Total Current Liabilities | 7,426,172,013.09 | 7,324,466,415.85 | | Long-term Borrowings | 297,000,000.00 | 878,122,760.42 | | Bonds Payable | 300,000,000.00 | 300,000,000.00 | | Total Non-Current Liabilities | 1,176,011,914.97 | 1,764,524,549.91 | | Total Liabilities | 8,602,183,928.06 | 9,088,990,965.76 | | Total Owner's Equity | 2,655,036,910.86 | 2,663,139,388.03 | Consolidated Income Statement In the first half of 2019, the company's consolidated total operating revenue was 3.292 billion yuan, a 37.08% increase year-on-year, with net profit at 32.9306 million yuan, up 7.75%, and operating profit at 42.3003 million yuan, up 130.91% Key Data from Consolidated Income Statement (First Half of 2019 vs First Half of 2018) | Item | First Half of 2019 (Yuan) | First Half of 2018 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 3,291,790,014.82 | 2,401,345,517.82 | | Total Operating Cost | 3,257,662,046.92 | 2,388,780,676.48 | | Operating Profit | 42,300,287.41 | 18,397,458.66 | | Total Profit | 43,465,523.50 | 34,894,746.72 | | Income Tax Expense | 10,534,910.81 | 4,332,729.26 | | Net Profit | 32,930,612.69 | 30,562,017.46 | | Net Profit Attributable to Parent Company Owners | 32,930,612.69 | 30,562,017.46 | | Basic Earnings Per Share | 0.0555 | 0.0515 | | Diluted Earnings Per Share | 0.0555 | 0.0515 | Parent Company Income Statement In the first half of 2019, the parent company's operating revenue was 3.129 billion yuan, a 39.32% increase year-on-year, while net profit decreased by 65.83% to 10.4107 million yuan, and total profit decreased by 59.34% to 14.5755 million yuan Key Data from Parent Company Income Statement (First Half of 2019 vs First Half of 2018) | Item | First Half of 2019 (Yuan) | First Half of 2018 (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 3,129,012,776.23 | 2,245,876,148.59 | | Operating Cost | 2,752,800,814.33 | 1,948,891,548.68 | | Operating Profit | 12,016,383.34 | 19,278,444.15 | | Total Profit | 14,575,478.74 | 35,852,046.03 | | Income Tax Expense | 4,164,825.76 | 5,384,156.04 | | Net Profit | 10,410,652.98 | 30,467,889.99 | Consolidated Cash Flow Statement In the first half of 2019, the company's net cash flow from operating activities significantly improved to 808.22 million yuan from a -304.11 million yuan deficit in the prior year, with net cash flow from investing activities at -172.47 million yuan and from financing activities at -685.27 million yuan due to increased loan repayments Key Data from Consolidated Cash Flow Statement (First Half of 2019 vs First Half of 2018) | Item | First Half of 2019 (Yuan) | First Half of 2018 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 808,224,254.31 | -304,107,799.77 | | Net Cash Flow from Investing Activities | -172,470,152.98 | -215,084.79 | | Net Cash Flow from Financing Activities | -685,269,834.32 | 327,191,095.27 | | Net Increase in Cash and Cash Equivalents | -51,738,701.60 | 25,580,174.37 | | Cash and Cash Equivalents at End of Period | 459,177,399.43 | 471,749,311.48 | Parent Company Cash Flow Statement In the first half of 2019, the parent company's net cash flow from operating activities significantly improved to 901.22 million yuan from a -76.22 million yuan deficit in the prior year, with net cash flow from investing activities at -172.47 million yuan and from financing activities at -685.27 million yuan Key Data from Parent Company Cash Flow Statement (First Half of 2019 vs First Half of 2018) | Item | First Half of 2019 (Yuan) | First Half of 2018 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 901,218,625.84 | -76,223,331.49 | | Net Cash Flow from Investing Activities | -171,795,271.05 | -4,743,197.10 | | Net Cash Flow from Financing Activities | -685,269,834.32 | 167,906,428.59 | | Net Increase in Cash and Cash Equivalents | 43,917,734.94 | 86,871,758.83 | | Cash and Cash Equivalents at End of Period | 331,473,746.22 | 441,159,906.31 | Consolidated Statement of Changes in Owner's Equity In the first half of 2019, the company's consolidated total owner's equity increased by 38.5579 million yuan, primarily driven by 32.9306 million yuan in net profit attributable to parent company owners and an increase in special reserves Consolidated Statement of Changes in Owner's Equity (First Half of 2019) | Item | Share Capital (Yuan) | Capital Reserve (Yuan) | Special Reserve (Yuan) | Surplus Reserve (Yuan) | Retained Earnings (Yuan) | Total Owner's Equity Attributable to Parent Company (Yuan) | Total Owner's Equity (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | II. Balance at Beginning of Year | 592,903,936.00 | 477,528,747.58 | 50,699,434.69 | 211,393,040.27 | 1,364,763,303.21 | 2,697,288,461.75 | 2,697,288,461.75 | | III. Changes for the Current Period | 0 | 0 | 5,627,237.67 | 0 | 32,930,612.69 | 38,557,850.36 | 38,557,850.36 | | (I) Total Comprehensive Income | 0 | 0 | 0 | 0 | 32,930,612.69 | 32,930,612.69 | 32,930,612.69 | | (V) Special Reserve | 0 | 0 | 5,627,237.67 | 0 | 0 | 5,627,237.67 | 5,627,237.67 | | IV. Balance at End of Period | 592,903,936.00 | 477,528,747.58 | 56,326,672.36 | 211,393,040.27 | 1,397,693,915.90 | 2,735,846,312.11 | 2,735,846,312.11 | Parent Company Statement of Changes in Owner's Equity In the first half of 2019, the parent company's total owner's equity increased by 13.3071 million yuan, primarily from 10.4107 million yuan in net profit and an increase in special reserves Parent Company Statement of Changes in Owner's Equity (First Half of 2019) | Item | Share Capital (Yuan) | Capital Reserve (Yuan) | Special Reserve (Yuan) | Surplus Reserve (Yuan) | Retained Earnings (Yuan) | Total Owner's Equity (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | II. Balance at Beginning of Year | 592,903,936.00 | 476,594,898.22 | 33,133,394.76 | 211,393,040.27 | 1,327,704,521.51 | 2,641,729,790.76 | | III. Changes for the Current Period | 0 | 0 | 2,896,467.12 | 0 | 10,410,652.98 | 13,307,120.10 | | (I) Total Comprehensive Income | 0 | 0 | 0 | 0 | 10,410,652.98 | 10,410,652.98 | | (V) Special Reserve | 0 | 0 | 2,896,467.12 | 0 | 0 | 2,896,467.12 | | IV. Balance at End of Period | 592,903,936.00 | 476,594,898.22 | 36,029,861.88 | 211,393,040.27 | 1,338,115,174.49 | 2,655,036,910.86 | Company Basic Information Zhongtong Bus Holding Co., Ltd., established in 1993, with a registered capital of 592.903936 million yuan and Li Shupeng as legal representative, operates in bus and component manufacturing and sales, with a consolidated financial statement scope covering 12 subsidiaries - The company was established on March 16, 1993, originally named "Shandong Bus Co., Ltd.", and renamed "Zhongtong Bus Holding Co., Ltd." in 2000[148] - The company's share capital has undergone multiple changes, most recently a capital reserve conversion to share capital in 2016, changing the registered capital to 592,903,936 shares[151] - The company's business scope includes the development, manufacturing, and sales of buses, bus chassis, RVs, van transport vehicles, trailers, as well as special parts, rubber products, industrial production material sales, technical consulting, and high-tech investments[152][153] - The company's registered capital is 592.903936 million yuan, its registered address is No. 261 Huanghe Road, Economic Development Zone, Liaocheng City, Shandong Province, and its legal representative is Li Shupeng[154][155] - The Group's consolidated financial statement scope includes 12 companies, such as Liaocheng Zhongtong Light Bus Co., Ltd[156] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with Chinese Accounting Standards and relevant regulations, supported by a history of profitable operations and sufficient financial resources - The Group's financial statements are prepared on a going concern basis, in accordance with actual transactions and events, and the "Enterprise Accounting Standards" and relevant regulations issued by the Ministry of Finance[157] - The Group has a recent history of profitable operations and sufficient financial resources, with outstanding sales orders, thus considering the going concern basis for financial statement preparation to be reasonable[158] Significant Accounting Policies and Estimates The company adheres to Enterprise Accounting Standards, using RMB as its functional currency, detailing policies for business combinations, consolidated financial statements, financial instruments, receivables, inventory, fixed assets, intangible assets, revenue, government grants, and deferred taxes, and implemented new financial instrument standards and 2019 financial statement format revisions - The financial statements prepared by the company comply with the requirements of Enterprise Accounting Standards, truly and completely reflecting the Group's financial position, operating results, and cash flows[160] - The company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets[171][172][173][174] - The company uses the allowance method for bad debt losses on receivables, conducting impairment tests individually or by portfolio at period-end, and provides detailed criteria and methods for significant and non-significant individual items and portfolio-based provisions[184][185][186][187] - In the first half of 2019, the company implemented the revised "Enterprise Accounting Standard No. 22 - Recognition and Measurement of Financial Instruments" and other new financial instrument standards, as well as the "Notice on Revising and Issuing the 2019 General Enterprise Financial Statement Format"[221] Taxation The company's main taxes include VAT (16%, 13%), Urban Maintenance and Construction Tax (7%), and Corporate Income Tax, with the company and some subsidiaries enjoying a 15% preferential income tax rate as high-tech enterprises, and other subsidiaries paying 20% as small and micro enterprises Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales revenue of goods | 16%, 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7% | | Corporate Income Tax | Taxable income | 15%, 16.5%, 25%, 20% | Taxpayer Status Under Different Corporate Income Tax Rates | Taxpayer Name | Corporate Income Tax Rate | | :--- | :--- | | Zhongtong Bus Holding Co., Ltd | 15% | | Shandong Tongsheng Refrigeration Equipment Co., Ltd | 15% | | Xinjiang Zhongtong Bus Co., Ltd | 15% | | Shandong Zhongtong Sales Co., Ltd | 25% | | Liaocheng Zhongtong Light Bus Co., Ltd | 15% | | Shenzhen Pengtong Automobile Sales Co., Ltd | 25% | | Shenyang Zhongtong Tongda Commercial Co., Ltd | 25% | | Harbin Zhongtong Bus Sales Co., Ltd | 25% | | Qingdao Zhongtong Bus Sales Service Co., Ltd | 25% | | Guangzhou Pengtong Automobile Sales Co., Ltd | 25% | | Beijing Zhongtong Tongda Automobile Commercial Co., Ltd | 20% | | Chengdu Shufeng Automobile Sales Co., Ltd | 20% | | Zhongtong Bus (Hong Kong) Co., Ltd | 16.5% | - The company and its subsidiaries, Shandong Tongsheng Refrigeration Equipment Co., Ltd., Liaocheng Zhongtong Light Bus Co., Ltd., and Xinjiang Zhongtong Bus Co., Ltd., are recognized as high-tech enterprises, enjoying a 15% preferential corporate income tax rate[236][237][238] - Subsidiaries Beijing Zhongtong Tongda Automobile Commercial Co., Ltd. and Chengdu Shufeng Automobile Sales Co., Ltd. qualify as small and micro enterprises, paying corporate income tax at a reduced rate of 20%[238] [Note