CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2018
Stock Code: 000521, 200521 Notice No.: 2018-049
Short Form of the Stock: Changhong Meiling, Hongmeiling B
CHANGHONG MEILING CO., LTD.
Summary of Semi-Annual Report 2018
I. Important Notice
(1) The summary of semi-annual report is excerpted from the full text of the semi-annual report. For the
details, investors should carefully read the full text of the semi-annual report published on Juchao
Information website (www.cninfo.com.cn) and Shenzhen Stock Exchange Website etc., appointed by CSRC.
(2) The Company did not have directors, supervisors and senior executives of the Company could not
guarantee the reality, accuracy and completion of the whole contents or have objections.
(3) All the directors attended the board meeting on deliberating the Report on site and by communication.
(4) Modified audit opinions notes
□ Applicable √ Not applicable
(5) Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the
semi-annual period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.
(6) Profit distribution for preferred shares approved by the Board
□Applicable √Not applicable
II. Company information
(I) Profile
Short form for share Changhong Meiling, Hongmeiling B Code for share 000521, 200521
Listing stock exchange Shenzhen Stock Exchange
Short form of the Stock before
MEILINGDIANQI, WANMEILING-B
changed (if applicable)
Contact person and ways Secretary of the Board Representative of Securities affairs
Name Li Xia Zhu Wenjie
No. 2163, Lianhua Road, Economic and No. 2163, Lianhua Road, Economic and
Office add.
Technology Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
E-mail lixia@meiling.com wenjie.zhu@meiling.com
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2018
(II) Main financial data and financial index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Current period Same period last year Changes +/-
Operating income (RMB) 9,271,509,569.67 8,517,794,193.10 8.85%
Net profit attributable to shareholders of the
50,684,231.73 92,075,039.77 -44.95%
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non-recurring -6,600,101.83 66,905,338.98 -109.86%
gains and losses (RMB)
Net cash flow arising from operating
160,489,361.06 484,230,697.91 -66.86%
activities (RMB)
Basic earnings per share (RMB/Share) 0.0485 0.0881 -44.95%
Diluted earnings per share (RMB/Share) 0.0485 0.0881 -44.95%
0.79 percentage points
Weighted average ROE 1.00% 1.79%
down
End of current period End of last year Changes +/-
Total assets (RMB) 17,485,565,133.30 15,961,511,966.81 9.55%
Net assets attributable to shareholder of
5,031,662,984.03 5,051,066,095.31 -0.38%
listed company (RMB)
(III) Amount of shareholders of the Company and particulars about shares holding
In share
Total preference shareholders
Total common shareholders in with voting rights recovered at
60,629 0
reporting period-end end of reporting period (if
applicable)
Top 10 shares holding
Amount of Number of share
Proportion
Nature of un-restricted pledged/frozen
Full name of Shareholders of shares Shares held
shareholder common shares State of Amo
held
held share unt
State-owned legal
Sichuan Changhong Electric Co., Ltd. 22.47% 234,705,968 69,877,638 -- --
person
Hefei Industry Investment Holding State-owned legal 4.58% 47,823,401
0 -- --
(Group) Co., Ltd. person
CHANGHONG (HK) TRADING Foreign legal 2.96% 30,895,442
0 -- --
LIMITED (note 1) person
Ping An Annuity Insurance Company of 2.26% 23,613,595
Domestic non
China, Ltd. – Ping An Pension Ruifu
state-owned 0 -- --
private placement No.1 Assets
corporate
Management Products
Foreign natural 1.32% 13,829,383
CAO SHENGCHUN 0 -- --
person
Domestic non 1.20% 12,522,361
Ping An UOB-Ping An Bank-Guohai
state-owned 0 -- --
Securities Co., Ltd.
corporate
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2018
Caitong Fund- Ningbo Bank-Haitong Domestic non 1.03% 10,733,452
Xingtai (Anhui) Emerging Industry state-owned 0 -- --
Investment Fund (Limited Partnership) corporate
Domestic non 0.94% 9,838,998
National Social Security Funds-504 state-owned 0 -- --
corporate
Domestic non 0.80% 8,370,031
Caitong Fund- CEB – Soochow Securities
state-owned 0 -- --
Co., Ltd.
corporate
Shenzhen Dewei Capital Investment Domestic non 0.78% 8,167,695
Management Co., Ltd. – Dewei Capital state-owned 0 -- --
Commodity No.1 Private Equity corporate
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED is the
wholly-owned subsidiary of Sichuan Changhong Electronic Co., Ltd.; there existed no
associated relationship or belong to the concerted actors as specified in the Measures for
the Administration of Information Disclosure of Shareholder Equity Changes of Listed
Companies among Sichuan Changhong Electronic Co., Ltd., CHANGHONG (HK)
TRADING LIMITED. and other top 8 shareholders; Ping An Annuity Insurance
Company of China, Ltd. – Ping An Pension Ruifu private placement No.1 Assets
Management Products has subscribed the products managed by Ping An Annuity
Insurance Company of China, Ltd. in the Company's non-public offering of shares in
Explanation on associated relationship 2016; Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. have subscribed the
products managed by Ping An Dahua Fund Management Co., Ltd. in the Company's
among the aforesaid shareholders
non-public offering of shares in 2016; Caitong Fund- Ningbo Bank-Haitong Xingtai
(Anhui) Emerging Industry Investment Fund (Limited Partnership) and Caitong Fund-
CEB – Soochow Securities Co., Ltd. have subscribed the products managed by Caitong
Fund Management Co., Ltd. in the Company's non-public offering of shares in 2016;
“National Social Security Funds-504” has subscribed the products managed by Harvest
Fund Management Co., Ltd. in the Company's non-public offering of shares in 2016.
The Company neither knows whether there is any association among other shareholders,
nor knows whether other shareholders belong to the persons acting in concert that is
stipulated in the “Administrative Measures on Information Disclosure of Changes in
Shareholding of Listed Companies”.
Explanation on shareholders involving
Not applicable
margin business (if applicable)
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan
Changhong-- CHANGHONG (HK) TRADING LIMITED, holds B-stock of the Company as 30,895,442 shares,
among which, 3,817,645 shares are held through Philip Securities (H.K.) Co., Ltd.
(IV) Changes of controlling shareholder or actual controller
1. Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No change of controlling shareholder in reporting period.
2. Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controller in reporting period.
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2018
(V) Total preferred shareholders and top 10 shares held by preferred shareholders
□ Applicable √ Not applicable
The Company has no preferred shareholders
(VI) Corporate bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without
due on the date when semi-annual report approved for released or fail to cash in full on due: No
III. Discussion and analysis of operation
(I) Operation status in the period
Investors are advice to read the full text of the report and be aware of the following risks:
In the second half of 2018, faced with the more intense competition in home appliance market and other
objective factors, the enterprise will have worse survival environment. In the future, the company will face risks
such as weak macroeconomic growth, severe industry situation, intensifying competition, rising raw materials and
transportation costs, tight domestic currency and credit environment, Sino-US trade war, exchange rate
fluctuations, new business models and the impact of the Internet era.
Does the Company need to comply with disclosure requirements of the special industry: No
1. Introduction
In the first half of 2018, the global economy encountered more and more risks and difficulties, the growth of
major economies slowed down, the inflation rose, and the cycle of tightening monetary policy began. At the same
time, trade protectionism was on the rise. Overall, the global economic situation in the first half of 2018 has
weakened compared to 2017, and the external environmental disadvantages faced by China have increased. In this
context, the domestic appliance industry is facing the impact of rising raw material costs, terminal market
saturation, real estate regulation and other factors. In the new normal of home appliances, the competition in the
home appliance industry becomes increasingly fierce, and innovation and breakthroughs become the key to be
bigger and stronger.
In the first half of 2018, under the strategic guidance of “Meiling Dream” and “Double Three One Core”, the
Company insisted on the operating principle of “product leading, marketing transformation, efficiency promotion
and team activation”, We has achieved operating income of RMB 9.272 billion, an increase of 8.85% on a
year-on-year basis; net profit attributable to the parent company of RMB 50.6842 million, a decrease of 44.95%
on a year-on-year basis.
2. Main Business Analysis
(1) Overview
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2018
In first half of 2018, refrigerator and freezer business achieved revenue of approximately RMB 3.684 billion,
0.75% decreased on a y-o-y basis; air-conditioning business achieved revenue of approximately RMB 4.378
billion, 14.29% up y-o-y; washing machine business achieve revenue around RMB 0.246 billion, with
year-on-year growth of 8.19 %; other business of small home appliance and kitchen & toilet products have
revenue approximately as RMB 0.449 billion with 23.61% up y-o-y. At the same time, revenue from exportation
gains RMB 2.175 billion, a y-o-y growth of 2.59%.
(2) Progress of the Company's development strategy and business plan during the reporting period
During the reporting period, in accordance with the development strategy and operating principles of 2018,
the Company has deployed the annual business plan, arranged the production and management, and carried out
the following activities:
Product leading:
In the first half of 2018, the company completed the listing of a variety of “M fresh Life” refrigerator (freezer)
products which further promoted the upgrades of the company’s refrigerator (freezer) products, made good market
performance, and achieved high recognition from consumers. At the same time, the sales volume of the
company’s CHiQ refrigerator increased by 21.0% on a year-on-year basis, and the sales volume of CHiQ
air-conditioner increased by 27.3% on a year-on-year basis, and the market influence of intelligent high-end
products was promoted significantly. In addition, the company improved the quality of high-end products through
the establishment of high-end product quality refinement standards and evaluation indicators, and achieved an
overall upgrade of products through the continuous propulsion of “five -ization and two easy” project and the
“quality, taste and brand” promotion project.
Marketing transformation:
Domestic marketing: Further consolidated and promoted the market position of the company’s products
through the e-commerce transformation, value transformation, channel transformation, and organizational
transformation of traditional business.
From the offline market sales, CMM’s data showed that the retail sales of refrigerator industry declined by
1% on a year-on-year basis, but the retail sales of the company’s refrigerator rose by 4.09% on a year-on-year
basis; the retail sales of freezer industry rose by 4.04% on a year-on-year basis, and the retail sales of the
company’s freezer rose by 16.5% on a year-on-year basis; the retail sales of air-conditioner industry rose by
6.76% on a year-on-year basis, and the retail sales of the company’s air conditioner rose by 4.04% on a
year-on-year basis; the retail sales of washing machine industry declined by 0.89% on a year-on-year basis, but
the retail sales of the company’s washing machine rose by 1.98% on a year-on-year basis.
From the online sales, the online sales of the company’s refrigerators and air conditioner further expanded
the results. According to AVC’s data, the retail sales of refrigerator industry rose by 49.24% on a year-on-year
basis, and the retail sales of the company’s refrigerator rose by 33.32% on a year-on-year basis; the retail sales of
freezer industry rose by 52.49% on a year-on-year basis, and the retail sales of the company’s freezer rose by
26.15% on a year-on-year basis; the retail sales of air-conditioner industry rose by 49.41% on a year-on-year basis,
and the retail sales of the company’s air conditioner rose by 31.70% on a year-on-year basis.
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2018
Overseas marketing: Through the transformation from pursuing scale to pursuing both scale and profit, the
transformation from traditional business model to emerging business model, and the transformation from order
driving to market driving, the product structure has been gradually improved, and the proportion of overseas
air-cooled refrigerators has exceeded 15%, the proportion of medium and high-end air-conditioning products is
also increasing, and the profitability of export products is improving significantly.
Efficiency promotion:
The company’s comprehensive competitiveness in terms of the market unit price, quality improvement and
efficiency improvement has been promoted by taking benchmarking management activities as the starting point,
and the manufacturing efficiency has been improved by promoting the “less people project”. In terms of cost
reduction, significant achievements have been made through design cost reduction, process cost reduction, and
procurement cost reduction. In the first half of the year, the company also carried out the special investigation and
management activities to manage the “leakage and venting”, and improved the efficiency through management
improvement and project improvement, and improved the organizational efficiency by promoting the construction
of “responsibility” system.
Team activation
Inspire the business teams’ vitality through the innovative incentive mechanism design (medium and
long-term incentive plan, annual performance share plan, and performance culture); continue to publicize, train,
propagate and guide the corporate culture, precipitate the corporate culture, and promote the organizational
atmosphere.
(II) Matters relevant to financial report
1. Particulars about the changes in aspect of accounting policy, estimates and calculation method compared
with the financial report of last year
□ Applicable √ Not applicable
No particulars about the changes in aspect of accounting policy, estimates and calculation method in Period.
2. Particulars about retroactive restatement on major correction for accounting errors in reporting period
□ Applicable √ Not applicable
No particulars about retroactive restatement on major correction for accounting errors in reporting period.
3. Particulars about the change of consolidation range compared with the financial report of last year
√ Applicable □Not applicable
The Company’s consolidated financial statement included 47 subsidiaries including Sichuan Changhong Air
Conditioner Co., Ltd, Zhongshan Changhong Home Appliances Company Limited and Zhongke Meiling
Cryogenic Technology Co., Ltd, etc. As compared to previous year, subsidiary Zhongshan Hongyou Appliances
Co., Ltd. was excluded due to liquidation.
Found more in “VII Change of Consolidate Statement” and VIII Equity in other main body carried in Section X
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CHANGHONG MEILING CO., LTD Summary of Semi-Annual Report 2018
Financial Report of the Semi-Annual Report 2018, released on 15 August 2018.
Changhong Meiling Co., Ltd.
Chairman: Li Wei
15 August 2018
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