Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Changhong Meiling Co., Ltd.
The First Quarterly Report of 2019
April 2019
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Section I. Important Notes
Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred to
as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and
completion of the quarterly report, there are no any fictitious statements, misleading statements or important
omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
Mr. Li Wei, person in charge of the Company, Mr. Pang Haitao, person in charger of accounting works and
Mr. Luo Bo, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Report
of this Quarterly Report is authentic, accurate and complete.
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
The First Quarterly Report of 2019 has not been audited.
All Directors are attended the Board Meeting for Quarterly Report deliberation.
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Section II. Basic situation of the Company
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √ No
Changes of this period over same
This Period Same period of last year
period of last year
Operating income (RMB) 4,222,693,607.41 4,245,506,565.60 -0.54%
Net profit attributable to shareholders of
60,526,575.53 56,261,852.68 7.58%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 36,385,461.05 23,011,689.73 58.12%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
-921,543,887.11 -771,375,311.87 -19.47%
activities (RMB)
Basic earnings per share (RMB/Share) 0.0579 0.0539 7.42%
Diluted earnings per share (RMB/Share) 0.0579 0.0539 7.42%
Weighted average ROE 1.20% 1.11% 0.09 percentage points up
Changes of this period-end over
End of this period End of last period
same period-end of last year
Total assets (RMB) 15,122,914,651.38 15,561,810,184.54 -2.82%
Net assets attributable to shareholder of
5,065,768,249.09 5,015,730,486.57 1.00%
listed company (RMB)
Items of non-recurring gains and losses
√ Applicable □ Not applicable
In RMB
Amount from year-begin to
Item Note
period-end
Gains/losses from the disposal of non-current asset (including the Found in “Asset
-786,764.45
write-off that accrued for impairment of assets) disposal income”
Governmental subsidy reckoned into current gains/losses (not including
Found in “Other
the subsidy enjoyed in quota or ration according to national standards, 15,222,078.41
income”
which are closely relevant to enterprise’s business)
Held transaction financial asset, gains/losses of changes of fair values Found in “Investment
from transaction financial liabilities, and investment gains from disposal 11,538,197.60 income” and “Changes
of transaction financial asset, transaction financial liabilities and financial in fair value gains”
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
asset available for sales, exclude the effective hedging business relevant
with normal operations of the Company
Reversion of the impairment provision of account receivable and Found in “Account
289,901.57
contractual assets that carry impairment test independently receivable”
Found in
Other non-operating income and expenditure except for the
-869,981.41 “Non-operating income
aforementioned items
and expenditure”
Less: impact on income tax 906,134.04 --
Impact on minority shareholders’ equity (post-tax) 346,183.20 --
Total 24,141,114.48 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items
defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---
Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
The Company has no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit
(gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss, in the period.
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Total number of common shareholders and preference shareholders with voting rights recovered and top
ten common shareholders
In shares
Total preference shareholders
with voting rights recovered at
Total number of common shareholders at the end of report period 65,331 0
end of reporting period (if
applicable)
Top ten shareholders
Number of share
Proporti Amount of
Amount of pledged/frozen
Nature of on of
Shareholder’s name restricted shares
shareholder shares shares held State of
held held Amount
share
State-owned legal
Sichuan Changhong Electric Co., Ltd. 23.79% 248,457,724 69,877,638 - -
person
State-owned legal
Hefei Industrial Investment Holding (Group) Co., Ltd. 4.58% 47,823,401 0.00 - -
person
Foreign legal
Changhong (Hong Kong) Trade Co., Ltd. 2.59% 27,077,797 0.00 - -
person
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Foreign nature
CAOSHENGCHUN 1.36% 14,240,979 0.00 - -
person
Domestic
Ping An UOB-Ping An Bank-Guohai Securities Co.,
non-State-owned 1.20% 12,522,361 0.00 - -
Ltd.
legal person
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Domestic
Emerging Industry Investment Fund (Limited non-State-owned 1.03% 10,733,452 0.00 - -
Partnership) legal person
Foreign legal
UBSAG 1.01% 10,533,440 0.00 - -
person
Caitong Fund－Everbright Bank－Soochow Securities Domestic
Co., Ltd. non-State-owned 0.67% 6,997,881 0.00 - -
legal person
Foreign legal
Philip Securities (H.K.) Co., Ltd. 0.60% 6,296,913 0.00 - -
person
Domestic
China Construction Bank - China Central Zhongzheng
non-State-owned 0.44% 4,627,500 0.00 - -
Sichuan Reform of State-owned Enterprise ETF
legal person
Top ten shareholders with unrestricted shares held
Amount of unrestricted Type of shares
Shareholder’s name
shares held Type Amount
Sichuan Changhong Electric Co., Ltd. 178,580,086 RMB ordinary shares 178,580,086
Hefei Industrial Investment Holding (Group) Co., Ltd. 47,823,401 RMB ordinary shares 47,823,401
Domestically listed
Changhong (Hong Kong) Trade Co., Ltd. 27,077,797 27,077,797
foreign shares
Domestically listed
CAOSHENGCHUN 14,240,979 14,240,979
foreign shares
Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. 12,522,361 RMB ordinary shares 12,522,361
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry
10,733,452 RMB ordinary shares 10,733,452
Investment Fund (Limited Partnership)
UBSAG 10,533,440 RMB ordinary shares 10,533,440
Caitong Fund－Everbright Bank－Soochow Securities Co., Ltd. 6,997,881 RMB ordinary shares 6,997,881
Domestically listed
Philip Securities (H.K.) Co., Ltd. 6,296,913 6,296,913
foreign shares
China Construction Bank - China Central Zhongzheng Sichuan Reform of
4,627,500 RMB ordinary shares 4,627,500
State-owned Enterprise ETF
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (“CHANGHONG (HK)”
for short) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd. (“Sichuan
Changhong” for short), except for the shares directly held by HK Changhong, 6,296,913 B-shares are
held by HK Changhong through Philip Securities (Hong Kong) Limited, which consist a person acting in
concert. 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, CHANGHONG (HK) and other top 7 shareholders; “Ping An
Explanation on associated relationship
UOB-Ping An Bank-Guohai Securities Co., Ltd. ”Ping An UOB-Ping An Bank-Guohai Securities Co.,
among the aforesaid shareholders
Ltd. refers to the products of Ping An UOB Fund Management Company subscribe for privately
placement of 2016; “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry
Investment Fund (Limited Partnership) ” and “Caitong Fund-Everbright Bank-Soochow Securities Co.,
Ltd.”refers to the products of Caitong Fund Management Company subscribe for privately placement of
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 top ten common
shareholders involving margin business N/A
(if applicable)
Note 1: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding"
is subject to the data on stock transfer books provided by China Securities Depository and Clearing Corporation
Limited Shenzhen Branch
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the
Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial
index and explanations of reasons
√ Applicable □Not applicable
(I) Changes and reasons of items in balance sheet
In RMB
Changes
Item Ending balance Opening balance Reasons of changes
ratio
Other account receivable from clients increased in
Other receivable 110,894,324.39 63,192,740.93 75.49%
the Period
Transactional financial Change of the fair value for FXA (Forward
37,130,673.69 55,586,666.70 -33.20%
liabilities Exchange Agreement) carried out in the period
Taxes paid by subsidiary Sichuan Air Conditioner
Taxes payable 72,320,922.91 109,753,432.17 -34.11%
in the period
(II) Changes and reasons of items in profit statement
In RMB
Amount at the
Item Amount at the same period of Changes ratio Reasons of changes
period last year
Taxes and
41,279,976.29 25,629,526.25 61.06% Taxes accrual in the period increased from a year earlier
surcharges
Interest expenditure and loss from foreign exchange in the
Financial expenses 12,386,522.10 -1,695,567.00 830.52%
period increased on a y-o-y basis
Due to the change of accounting policy, accrual of
Assets impairment
8,114,711.29 17,534,805.86 -53.72% financial assets impairment was transfer to “Loss of credit
loss
impairment” in the period
Credit impairment
-4,348,457.12 -100.00% Same as “Assets impairment loss”
loss
Government grants received in the period increased from a
Other income 15,924,209.49 10,367,452.07 53.60%
year earlier
Income from financing in the period declined on a y-o-y
Investment income -3,294,794.60 23,858,193.30 -113.81%
basis
Changing income of Change of the fair value for FXA (Forward Exchange
17,239,305.01 -3,292,159.49 623.65%
fair value Agreement) carried out in the period
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Assets disposal The income from non-current assets disposal decreased on
-786,764.45 3,634,169.59 -121.65%
income a y-o-y basis
Non-business Relocation expenditure from subsidiary Sichuan Air
1,901,268.37 16,552.57 11,386.24%
expenditure Conditioner increased on a y-o-y basis
Some of the wholly-owned subsidiary have deficit in the
Minority interest -5,022,513.61 -1,101,397.78 -356.01%
period with a y-o-y increased
(III) Changes and reasons of items in cash flow statement
In RMB
Amount at the
Amount at the same period of last Changes
Item Reasons of changes
ratio
period year
The export rebate received in the period decreased from
Write-back of tax received 67,038,256.22 142,336,736.25 -52.90%
a year earlier
Other cash received in connection Collection of the operational limited monetary fund in
73,527,737.20 8,641,836.66 750.83%
with business activities the period
Taxes paid 159,372,262.81 65,401,069.62 143.68% Taxes paid in the period increased on a y-o-y basis
Cash received from investment The income from entrusted financial management
1,512,445.59 30,148,051.45 -94.98%
income received in the period declined on a y-o-y basis
Principal of entrusted financing are paid in the Period
Cash paid for investments 424,000,000.00 1,080,000,000.00 -60.74%
declined from a year earlier
Other cash paid concerning investing Loss from forward foreign exchange contract delivery
5,481,620.00 10,010,000.00 -45.24%
activities declined on a y-o-y basis
Cash paid for dividend/profit
35,295,622.65 16,030,019.50 120.18% Cash dividend paid in the period
distribution or interest expenses
Other cash paid concerning financing The funding-constrained monetary funds increased on a
25,073,514.40 0.00 100.00%
activities y-o-y basis
II. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable
(I) Particular about process of the fund raised and investment of fund raised in the report period
The Company implemented a private placement of A-share in year of 2016, totally 1,569,999,998.84 Yuan
raised, net money raised amounting to 1,540,732,722.76 Yuan after deducted vary issuance costs (tax included)
29,267,276.08 Yuan.
The resolutions of the 16th session of the 9th Board of Directors of the Company, the 8th session of the 9th
Board of Supervisors of the Company, and the 3rd Extraordinary General Meeting of 2018 passed, and the
independent directors consented, and the sponsor institution made unanimous verification opinions to agree the
company to use the idle raised funds of not exceeding RMB 940 million to invest in the principal-protected
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
financial products with high security, good liquidity and allotted time of single item not more than one year, the
authorization period is valid for one year from the date of approval by the company’s general meeting of
shareholders. Up to now, the company is normatively using the raised funds in accordance with the
decision-making and relevant regulations and requirements.
Ended as 31 March 2018, actually fund of raised used accumulative amounted as 726,039,989.35 Yuan in
total, balance of the account for fund raised counted as 907,308,197.77 Yuan (including interest income
accumulative amounted as 10,993,276.01 Yuan and income from financial product at expiration 81,474,847.34
Yuan, as well as 9040000 million Yuan financial products purchased by idle temporary fund-raising)
The Company accumulative used the fund raised amounted as 726,039,989.35 Yuan, the use of purpose
including: intelligent construction has 127,357,924.32 Yuan in used; R&D ability for intelligence and new
products for intelligent household appliance has 282,800,601.26 Yuan in used; smart life project totally used
45,001,400.00 Yuan; used in current fund supplementary counted as 270,880,063.77 Yuan (including saving
interest of 147,341.01 Yuan)
The resolutions of the 20th session of the 9th Board of Directors and the 11th session of the 9th Board of
Supervisors of the Company agreed to postpone the date of the intelligent manufacturing construction project,
intelligent R&D capacity building and intelligent home appliance technology development project reaching the
expected usable condition to the end of December 2021. At the same time, the company’s independent directors
have issued independent opinions of consent, and the company’s sponsor institution Shenwan Hongyuan issued a
unanimous verification opinion. The Intelligent Life project is implemented by Changmei Technology Co., Ltd.,
this project is in operation.
(II) Implementation for annual performance incentive fund
On August 9, 2012 and August 28, 2012, the Company considers the adoption of "Hefei Meiling annual
performance incentive fund implementation plan" (hereinafter referred to as "" stimulus "") on the 16th meeting of
the 7th board of directors and the 2012-second provisional shareholders meeting. Details were disclosed on
information disclosure media appointed by the Company as "Securities Times", "Chinese Securities Daily",
"Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August
29 in the form of announcement (No.: 2012-028, No.:2012-035).
1. Implementation about 2012, 2013, 2014 and 2016 performance incentive fund provision and
distribution plan
See details in "Implementation of the company's annual incentive fund" in "XI Implementation of the
company's stock incentive plan, employee stock ownership plan, or other employee incentive measures" in
"Section V Important Events" of the company's "2018 Annual Report" disclosed on 29 March 2019.
Up to the end of this reporting period, the company's stock purchased by some 2012 annual performance
incentive objects (non-directors, supervisors and senior management), 2013 annual performance incentive objects
(non-directors, supervisors and senior management), the 2014 annual performance incentive objects
(non-directors, supervisors and senior management) with their granted 2012 annual performance incentive funds
and own funds and 2013 & 2014 annual performance incentive funds and own funds have been fully released for
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
trading; details of the share reduction for the above mentioned objects see below; if the holding period of the
company’s shares which are purchased by the 2016 annual performance incentive targets with their awarded 2016
annual performance incentive funds and their own funds is less than two years, all shares purchased by the
incentive targets will be locked in accordance with their commitments. The Company’s shares purchased by the
current directors, supervisors and senior executives among the performance incentive targets due to the
implementation of the 2012, 2013, 2014 and 2016 annual performance incentive plans have not reduced the
shareholdings.
2. Shareholding and reducing of performance incentive objects of the Company
Ended as 31 March 2019, shares hold by all incentive objects amounting to 11,728,680 shares, a 1.1228 % in
total share capital of the Company, including 10,038,787 A-share, a 0.9610% in total share capital and 1,689,893
B-share, a 0.1618% in total share capital of the Company. Other grantees of the 2012, 2013, 2014 and 2016
incentive plan (not being directors, supervisors and senior management) have reduced holding of 4,785,135 in
aggregate, accounting for about 0.4581% of the total share capital and 68,750 shares are reduced in the reporting
period.
(III) Transaction with Sichuan Changhong Group Finance Co., Ltd
The resolution of the 34th meeting of the 8th board of directors on August 9, 2017 and the second
extraordinary general meeting of 2017 on September 12, 2017 approved and agreed the company to continue
carry out the financial service cooperation with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred
to as “Changhong Finance Company”) and sign a triennial Financial Service Agreement. According to the
“Proposal on Expected Continuous Related Transactions with Sichuan Changhong Group Finance Co., Ltd. in
2019” approved by the deliberations of the 17th session of the 9th Board of Directors, the 9th session of the 9th
Board of Supervisors and the 4th Extraordinary General Meeting of 2018 of the Company, Changhong Finance
Company provides a series of financial services such as deposits and loans within the scope of its business in
accordance with the requirements of the Company and its subsidiaries. The related transactions between the
company and its subsidiaries and Changhong Finance Company from the beginning of the year to the end of the
reporting period are as follows:
In RMB
Interest,
Increased during the Decreased during the
Item Opening balance Ending balance handling charge
Year Year
paid or received
I. Savings in
Changhong Group 3,119,117,207.91 6,648,303,460.19 7,427,219,085.87 2,340,201,582.23 21,915,303.29
Finance Company
II. Borrowings from
Changhong Group
Finance Company
1.Short-term loans
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Interest,
Increased during the Decreased during the
Item Opening balance Ending balance handling charge
Year Year
paid or received
2.Long-term loans
III. Other financial
business
1.Notes drawing 819,806,514.07 471,939,007.48 412,786,235.76 878,959,285.79 214,728.43
2.Notes discounted 772,233,395.98 345,625,142.76 148,981,669.33 968,876,869.41 334,593.52
(IV) Other significant events
Information index for temporary report
Overview Date for disclosure
disclosure
Mr. Wu Dinggang, the former president of the company, applied for resignation as
Juchao Website：
president of the Company due to changes in his personal work, but he will continue to
2019-1-12 http://www.cninfo.com.cn
serve as the vice president of the company, a member of the strategy committee and a
(No. 2019-001)
member of the remuneration and appraisal committee of the board of directors.
The company’s board resolution passed and agreed to authorize the company’s
Juchao Website：
directors and vice president Mr. Kou Huameng to act on the president’s behalf, and the
2019-1-12 http://www.cninfo.com.cn
allotted time is from January 11, 2019, i.e. the date on which the board resolution takes
(No. 2019-002)
effect, to the date on which the board of directors engages a new president.
On January 14, 2019, the company received a Notification Letter from Caitong Fund
Management Co., Ltd. About the Progress of Reducing Equity Holding of Changhong
Meiling Co., Ltd.” from Caitong Fund Management Co., Ltd. (hereinafter referred to as Juchao Website：
“Caitong Fund”) which held more than 5% shares of the company, Caitong Fund 2019-1-15 http://www.cninfo.com.cn
reduced equity holdings of 12,160,298 shares of the company’s shares through (No. 2019-003)
centralized bidding transaction and block trading method from October 18, 2018 to
January 13, 2019, accounting for 1.1641% of the Company’s total share capital.
The resolutions of the board of directors, the board of supervisors and the general Juchao Website：
meeting of shareholders of the company passed and agreed the company to provide 2019-1-30 http://www.cninfo.com.cn
credit guarantees totaling 2980 million yuan to the wholly-owned and holding 2019-2-14 (No. 2019-004, No. 2019-005, No.
subsidiaries of the company in 2019. For the guarantee amount newly increased in this 2019-2-23 2019-006, No. 2019-008, No. 2019-010,
year and the amount of renewal in the current year, the guarantee period is one year. No. 2019-012)
The resolution of the company’s board of director passed and agreed the company to Juchao Website：
apply for a special credit line of maximum 300 million yuan in the bill pool of Hefei 2019-1-30 http://www.cninfo.com.cn
Branch of China Everbright Bank Co., Ltd. (No. 2019-003, No. 2019-007)
During the reporting period, the company used idle raised funds to purchase 424
million yuan of principal-protected bank financial products, including 100 million yuan
Juchao Website：
for the financial products of China Guangfa Bank, 100 million yuan for the financial
2019-2-1 http://www.cninfo.com.cn
products of Shanghai Pudong Development Bank and 224 million yuan for the
(No. 2019-009)
financial products of Bank of Communications. As of the end of the reporting period,
the balance of the idle raised funds that the company used to purchase the
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
principal-protected bank financial products was 904 million yuan.
On February 13, 2019, the company received the “Short-Form Report on Changes in
Equity of Changhong Meiling Co., Ltd.” from Caitong Fund, during the period from
January 14, 2019 to February 12, 2019, the assets management plan of Caitong Fund
Juchao Website：
reduced the equity holding of 2,600,729 shares of Changhong Meiling by centralized
2019-2-14 http://www.cninfo.com.cn
bidding transactions, with a total reduction amount of 8,115,894.30 yuan, accounting
(No. 2019-011)
for 0.25% of the company’s total share capital. After this change in equity, Caitong
Fund (on behalf of its asset management plan) holds 52,229,844 shares of Changhong
Meiling, accounting for 4.999995% of Changhong Meiling’s total share capital.
On February 25, 2019, the company received the Notice About Increasing
Shareholding of Changhong Meiling Co., Ltd. and the Equity Changes of Sichuan
Changhong Electric Co., Ltd. and its concerted action person Changhong (Hong Kong)
Trading Co., Ltd.” (hereinafter referred to as “Notice”). During the period from
November 12, 2018 to February 25, 2019, Sichuan Changhong and its concerted action
Juchao Website：
person Changhong (Hong Kong) Trading Co., Ltd. (hereinafter referred to as “HK 2019-2-26
http://www.cninfo.com.cn
Changhong” or “Concerted Action Person”) bought 16,231,024 shares of Changhong 2019-2-28
(No. 2019-013)
Meiling (including 13,751,756 shares of Changhong Meiling A shares and 2,479,268
shares of Changhong Meiling B shares) by bidding transaction through the secondary
market, accounting for 1.55% of Changhong Meiling’s total share capital, resulting in
the equity ratio of Changhong Meiling held by Sichuan Changhong and Concerted
Action Person increased by 5% from September 2009 to February 2019.
Juchao Website：
In late March 2019, the company received the “Notice of Drafted Civil Penalty” issued
2019-3-26 http://www.cninfo.com.cn
by U.S. Department of Energy (“DOE”).
(No. 2019-014)
The resolution of company’s board of directors passed and agreed the company to
make changes in the corresponding accounting policies according to the relevant
Juchao Website：
regulations and requirements of the Ministry of Finance so as to apply to the new
2019-3-29 http://www.cninfo.com.cn
regulations. This matter still needs to be submitted to the company’s 2018 annual
(No. 2019-015, No. 2019-018)
general meeting of shareholders for consideration and approval.
The resolution of company’s board of directors passed and agreed the company and its
subsidiaries to carry out forward foreign exchange fund transaction business from July
1, 2019 to June 30, 2020, the business transaction balances do not exceed US$650
Juchao Website：
million (mainly including: US dollar, Australian dollar, Euro, other foreign exchanges
2019-3-29 http://www.cninfo.com.cn
are all converted into US dollars), the delivery period of a single business should be
(No. 2019-015, No. 2019-020)
less than one year. This matter still needs to be submitted to the company’s 2018 annual
general meeting of shareholders for consideration and approval.
Being deliberated and approved by resolution of the Board, the intended usable state
Juchao Website：
for “Construction of intelligent manufacturing project” and “Construction of intelligent
2019-3-29 http://www.cninfo.com.cn
R&D capability and new products development of the intelligent appliance
(No. 2019-015, No. 2019-021)
technology” (the investment projects with privately placement of 2016) will postpone
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
to end of December in 2021. This matter still needs to be submitted to the company’s
2018 annual general meeting of shareholders for consideration and approval.
The resolution of company’s board of directors passed and agreed to amend some
articles of the Articles of Association, the Rules of Procedure for the General Meeting
Juchao Website：
of Shareholders, and the Rules of Procedure for the Board of Directors. This matter still
2019-3-29 http://www.cninfo.com.cn
needs to be submitted to the company’s 2018 annual general meeting of shareholders
(No. 2019-015, No. 2019-022)
for consideration and approval.
The resolution of company’s board of directors passed and agreed the company and its
subsidiaries, including Zhongshan Changhong Electric Co., Ltd., Guangdong
Juchao Website：
Changhong Ridian Technology Co., Ltd. and Hongyuan Geothermal Heat Pump
2019-3-29 http://www.cninfo.com.cn
Technology (Zhongshan) Co., Ltd., donated a total of 130,000 yuan to the Nantou
(No. 2019-015, No. 2019-023)
Town People’s Government of Zhongshan City for expanding the Nantou Town Central
Primary School.
(v) Implementation progress of shares buy-back
□ Applicable √ Not applicable
(vi) Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
III. Commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies.
IV. Forecast of operation performance from Jan. – June of 2019
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be
loss probably or the warning of its material change compared with the corresponding period of the last year and
explanation on reason
□ Applicable √ Not applicable
V. Securities Investment
□ Applicable √ Not applicable
No security investment in Period.
VI. Derivative investment
√ Applicable □Not applicable
12
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
In 10 thousand Yuan
Ratio of investment
Amount of
Relate Whether Amount Amount amount at
Investment reserve for Investment Actual
d related Initial purchased in sales in the period-end in net
Operator Type Start date End date amount at devaluation of amount at gains/losses
relatio trade or investment the reporting reporting assets of the
period-begin withdrawing period-end in period
nship not period period Company at
(if applicable)
period-end
Forward foreign
Financial
N/A No exchange 200,656.30 2017-9-29 2019-12-23 149,739.86 50,916.44 43,964.10 -- 157,413.54 30.41% -721.36
institution
contract
Total 200,656.30 -- -- 149,739.86 50,916.44 43,964.10 -- 157,413.54 30.41% -721.36
Capital resource (if applicable) Self-owned capital
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board for
2018-3-30
investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if 2018-5-11
applicable)
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under
certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange
rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the
Risk analysis and controlling measures for
foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then
derivatives holdings in the Period (including but
determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level.
not limited to market risk, liquidity risk, credit
2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade
risks, operation risk and law risks etc.)
authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with
contract price, which leads the risk of income uncertainty. So the Company chose Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of
13
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
China, China Construction Bank and other chines e-funded banks with a joint-stock system as Everbright and Industrial Bank, as well as the foreign-funded banks as
UOB, Oversea Chinese Bank and the Bank of East Asia etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and management
whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated
related management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises
Risk analysis and controlling measures for
No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services.
derivatives holdings in the Period (including but
While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts
not limited to market risk, liquidity risk, credit
signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign
risks, operation risk and law risks etc.)
exchange contracts and losses of the Company is RMB 7,213,600.
Specific principle of the accounting policy and
calculation for derivatives in the Period compared Not applicable
with last period in aspect of major changes
Upon inspection, the independent directors of the Company believes that: During the reporting period, the Company carried out its foreign exchange forward deals in
strict compliance with the standardized operation guidelines for listed issuer on main board (2015 amended) issued by Shenzhen Stock Exchange, the Articles of
Association, Authorization Management of the Company, Management System in relating to Foreign Exchange Forward Deals of Changhong Meiling Co., Ltd., and
these deals were conducted within the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on
Special opinion on derivative investment and risk
the purpose of getting profit only, all of the forward foreign exchange transactions are operates based on normal operating and production, which is relying on
control by independent directors
specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company is related
with the routine operation needs of the Company are beneficial to prevent the exchange risks exposed by import and export business and thus met its requirement for
operation development. There was no speculative operation, no break of relevant rules and regulations and relevant business was conducted under corresponding
decision-making procedures. Interests of the Company and entire shareholders, especially minority shareholders, were not prejudiced.
14
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
VII. Registration form for receiving research, communication and interview in the report
period
√ Applicable □ Not applicable
Time Way Type Basic situation index of investigation
http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stoc
2019-2-26 Field research Institute
kCode=000521#
VIII. Guarantee outside against the regulation
□Applicable √Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
IX. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
The Company had no non-operational fund occupation from controlling shareholders or its related party in
the reporting period.
15
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Changhong Meiling Co., Ltd.
In RMB
Items 2019-3-31 2018-12-31
Current assets:
Monetary fund 3,298,560,072.14 4,596,077,557.40
Settlement provisions
Capital lent
Transactional financial assets 8,038,858.13
Financial assets measured by fair value and with
9,253,635.59
variation reckoned into current gains/losses
Derivative financial assets
Note receivable and account receivable 4,669,700,970.50 4,058,819,532.50
Including: Notes receivable 2,215,850,948.58 2,387,830,887.74
Accounts receivable 2,453,850,021.92 1,670,988,644.76
Account paid in advance 87,614,787.29 86,180,459.26
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 110,894,324.39 62,129,574.17
Including: Interest receivable 560,000.00 2,653,712.36
Dividends receivable
Buying back the sale of financial assets
Inventories 2,284,085,805.76 2,174,436,573.67
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 1,175,918,616.79 1,184,686,956.96
Total current assets 11,634,813,435.00 12,171,584,289.55
16
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Non-current assets:
Loans and payments on behalf
Debt investment
Available-for-sale financial assets 45,000,000.00
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 63,951,984.06 61,869,440.55
Investment in other equity instrument
Other non-current financial assets 45,000,000.00
Investment real estate 46,495,016.63 46,846,507.41
Fixed assets 1,795,481,364.06 1,733,957,012.14
Construction in progress 492,381,189.77 464,558,352.60
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 819,449,590.61 817,579,958.94
Research and development costs 118,455,247.67 108,210,966.60
Goodwill
Long-term deferred expenses
Deferred income tax assets 106,886,823.58 112,203,656.75
Other non-current assets
Total non-current assets 3,488,101,216.38 3,390,225,894.99
Total assets 15,122,914,651.38 15,561,810,184.54
Current liabilities
Short-term borrowings 2,099,804,318.77 2,336,373,929.62
Loan from central bank
Capital borrowed
Transactional financial liability 37,130,673.69
Financial liability measured by fair value and
55,586,666.70
with variation reckoned into current gains/losses
Derivative financial liability
Notes payable & account payable 5,783,696,601.37 6,009,929,380.98
Accounts received in advance 445,670,416.05 354,551,354.80
17
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Selling financial asset of repurchase
Absorbing deposit and interbank deposits
Agent buying and selling securities
Acting underwriting securities
Wage payable 126,298,833.73 163,638,627.79
Taxes payable 72,320,922.91 109,753,432.17
Other accounts payable 641,578,423.45 660,320,360.26
Including: Interest payable 13,609,466.80 7,519,756.26
Dividend payable 3,234,928.37 17,317,286.45
Handling fees and commissions payable
Reinsurance payable
Contractual liability
Liability held for sale
Non-current liabilities due within one year 275,439,053.10 273,682,737.85
Other current liabilities
Total current liabilities 9,481,939,243.07 9,963,836,490.17
Non-current liabilities:
Insurance contract reserve
Long-term loans 1,920,000.00 1,920,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 4,693,693.60 5,017,208.00
Long term employee compensation payable 17,493,733.00 19,073,101.29
Accrued liabilities 273,233,043.84 273,063,677.21
Deferred income 164,718,767.14 160,250,963.60
Deferred income tax liabilities 3,003,916.98 3,098,699.11
Other non-current liabilities
Total non-current liabilities 465,063,154.56 462,423,649.21
Total liabilities 9,947,002,397.63 10,426,260,139.38
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
18
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Including: preferred stock
Perpetual capital securities
Capital public reserve 2,684,369,598.46 2,684,369,598.46
Less: Inventory shares
Other comprehensive income -19,191,702.01 -18,143,569.26
Special reserve
Surplus reserve 399,082,433.26 400,673,993.50
Provision of general risk
Retained profit 956,910,038.38 904,232,582.87
Total owner’s equity attributable to parent Company 5,065,768,249.09 5,015,730,486.57
Minority interests 110,144,004.66 119,819,558.59
Total owner’s equity 5,175,912,253.75 5,135,550,045.16
Total liabilities and owner’s equity 15,122,914,651.38 15,561,810,184.54
Legal Representative: Li Wei
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Luo Bo
2. Balance Sheet of Parent Company
In RMB
Items 2019-3-31 2018-12-31
Current assets:
Monetary fund 1,888,933,793.71 2,897,004,041.87
Transactional financial assets 8,038,858.13
Financial assets measured by fair value and with
9,253,635.59
variation reckoned into current gains/losses
Derivative financial assets
Note receivable and account receivable 3,675,549,527.97 3,483,525,970.01
Including: Notes receivable 2,161,492,040.09 2,433,243,946.64
Accounts receivable 1,514,057,487.88 1,050,282,023.37
Account paid in advance 85,121,554.58 58,710,427.38
Other account receivable 169,032,349.14 182,744,033.52
Including: Interest receivable 560,000.00 2,653,712.36
Dividends receivable
19
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Inventories 984,874,854.85 911,130,106.30
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 1,106,511,243.92 1,113,987,528.70
Total current assets 7,918,062,182.30 8,656,355,743.37
Non-current assets:
Debt investment
Available-for-sale financial assets 45,000,000.00
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 1,741,080,806.77 1,731,109,903.70
Investment in other equity instrument
Other non-current financial assets 45,000,000.00
Investment real estate 7,532,990.42 7,618,550.16
Fixed assets 1,080,514,627.58 1,082,915,540.08
Construction in progress 130,770,479.74 125,064,106.10
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 459,627,275.68 462,425,105.64
Research and development costs 75,337,664.97 57,383,653.72
Goodwill
Long-term deferred expenses
Deferred income tax assets 76,189,368.54 78,357,299.17
Other non-current assets
Total non-current assets 3,616,053,213.70 3,589,874,158.57
Total assets 11,534,115,396.00 12,246,229,901.94
Current liabilities
Short-term borrowings 1,535,198,900.65 1,911,719,726.13
Transactional financial liability 13,467,437.90
Financial liability measured by fair value and
19,893,875.00
with variation reckoned into current gains/losses
20
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Derivative financial liability
Notes payable & account payable 3,709,869,919.69 4,013,263,630.45
Accounts received in advance 102,234,815.49 105,815,140.88
Contractual liability
Wage payable 10,756,063.71 31,271,182.48
Taxes payable 16,244,613.19 21,992,129.58
Other accounts payable 413,170,461.81 427,293,961.56
Including: Interest payable 10,022,140.43 5,801,215.14
Dividend payable 3,234,928.37 17,317,286.45
Liability held for sale
Non-current liabilities due within one year 260,355,541.04 258,588,504.48
Other current liabilities
Total current liabilities 6,061,297,753.48 6,789,838,150.56
Non-current liabilities:
Long-term loans 1,920,000.00 1,920,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 17,493,733.00 19,073,101.29
Accrued liabilities 266,465,514.75 266,641,323.73
Deferred income 59,577,173.43 53,118,676.50
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 345,456,421.18 340,753,101.52
Total liabilities 6,406,754,174.66 7,130,591,252.08
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 2,753,017,007.10 2,753,017,007.10
Less: Inventory shares
21
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Other comprehensive income
Special reserve
Surplus reserve 398,864,267.58 400,455,827.82
Retained profit 930,882,065.66 917,567,933.94
Total owner’s equity 5,127,361,221.34 5,115,638,649.86
Total liabilities and owner’s equity 11,534,115,396.00 12,246,229,901.94
Legal Representative: Li Wei
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Luo Bo
3. Consolidated Profit Statement
In RMB
Items Current Period Last Period
I. Total operating income 4,222,693,607.41 4,245,506,565.60
Including: Operating income 4,222,693,607.41 4,245,506,565.60
Interest income
Insurance gained
Handling fees and commissions income
II. Total operating cost 4,184,854,861.76 4,213,805,314.53
Including: Operating cost 3,378,498,741.74 3,395,348,853.41
Interest expense
Handling fees and commissions expenses
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Taxes and surcharge 41,279,976.29 25,629,526.25
Sales expenses 613,574,029.12 659,262,709.74
Administration expenses 83,140,320.57 73,449,404.70
R&D expenses 52,209,017.77 44,275,581.57
Financial expenses 12,386,522.10 -1,695,567.00
22
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Including: interest expenses 27,122,066.28 22,081,680.01
Interest income 25,211,309.83 25,860,272.23
Losses of devaluation of asset 8,114,711.29 17,534,805.86
Loss of credit impairment -4,348,457.12 0.00
Add: other income 15,924,209.49 10,367,452.07
Investment income (Loss is listed with “-”) -3,294,794.60 23,858,193.30
Including: Investment income on affiliated
2,406,312.81 -1,987,586.69
Company and joint venture
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed
with “-”)
Changing income of fair value(Loss is listed
17,239,305.01 -3,292,159.49
with “-”)
Income on disposal of assets (Loss is listed with
-786,764.45 3,634,169.59
“-”)
III. Operating profit (Loss is listed with “-”) 66,920,701.10 66,268,906.54
Add: Non-operating income 1,031,286.96 1,557,612.64
Less: Non-operating expense 1,901,268.37 16,552.57
IV. Total Profit (Loss is listed with “-”) 66,050,719.69 67,809,966.61
Less: Income tax 10,546,657.77 12,649,511.71
V. Net profit (Net loss is listed with “-”) 55,504,061.92 55,160,454.90
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with
55,504,061.92 55,160,454.90
‘-”)
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent
60,526,575.53 56,261,852.68
company
2.Minority shareholders’ gains and losses -5,022,513.61 -1,101,397.78
VI. Net after-tax of other comprehensive income -2,085,506.09 -6,515,999.71
Net after-tax of other comprehensive income
-1,048,132.75 -4,584,887.13
attributable to owners of parent company
(I) Other comprehensive income items which will
not be reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
23
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
2.Other comprehensive income under equity
method that cannot be transfer to gain/loss
3.Change of fair value of investment in other
equity instrument
4.Fair value change of enterprise's credit risk
5. Other
(II) Other comprehensive income items which will
-1,048,132.75 -4,584,887.13
be reclassified subsequently to profit or loss
1.Other comprehensive income under equity
method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-maturity investments
that re-classify to available-for-sale financial asset
6.Credit impairment provision for other debt
investment
7.Cash flow hedging reserve
8.Translation differences arising on
-1,048,132.75 -4,584,887.13
translation of foreign currency financial statements
9.Other
Net after-tax of other comprehensive income
-1,037,373.34 -1,931,112.58
attributable to minority shareholders
VII. Total comprehensive income 53,418,555.83 48,644,455.19
Total comprehensive income attributable to
59,478,442.78 51,676,965.55
owners of parent Company
Total comprehensive income attributable to minority
-6,059,886.95 -3,032,510.36
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0579 0.0539
(ii) Diluted earnings per share 0.0579 0.0539
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Li Wei
24
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Luo Bo
4. Profit Statement of Parent Company
In RMB
Items Current Period Last Period
I. Operating income 2,235,042,419.73 2,108,581,292.40
Less: Operating cost 1,952,295,548.80 1,809,944,883.90
Taxes and surcharge 22,080,703.51 13,489,765.30
Sales expenses 182,856,903.44 204,911,029.89
Administration expenses 33,905,037.20 29,338,556.94
R&D expenses 22,605,067.51 23,195,836.24
Financial expenses 3,903,872.42 307,773.98
Including: interest expenses 19,232,245.83 15,868,162.75
Interest income 15,126,621.45 13,139,035.21
Losses of devaluation of asset 3,052,384.53 -1,979,239.78
Loss of credit impairment -4,032,480.31 0.00
Add: other income 6,673,926.51 4,241,513.91
Investment income (Loss is listed with “-”) 1,728.66 20,171,924.50
Including: Investment income on affiliated
3,970,903.07 559,794.36
Company and joint venture
Net exposure hedging income (Loss is listed
with “-”)
Changing income of fair value(Loss is listed
5,211,659.64 -9,649,410.27
with “-”)
Income on disposal of assets (Loss is listed with
-645,262.95 -627,343.74
“-”)
II. Operating profit (Loss is listed with “-”) 29,617,434.49 43,509,370.33
Add: Non-operating income 188,670.00 1,508,872.27
Less: Non-operating expense
III. Total Profit (Loss is listed with “-”) 29,806,104.49 45,018,242.60
Less: Income tax 2,167,930.63 5,037,110.64
IV. Net profit (Net loss is listed with “-”) 27,638,173.86 39,981,131.96
(i)continuous operating net profit (net loss listed
27,638,173.86 39,981,131.96
with ‘-”)
25
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which will
not be reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under equity
method that cannot be transfer to gain/loss
3.Change of fair value of investment in other
equity instrument
4.Fair value change of enterprise's credit risk
5. Other
(II) Other comprehensive income items which will
be reclassified subsequently to profit or loss
1.Other comprehensive income under equity
method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-maturity investments
that re-classify to available-for-sale financial asset
6.Credit impairment provision for other debt
investment
7.Cash flow hedging reserve
8.Translation differences arising on
translation of foreign currency financial statements
9.Other
VI. Total comprehensive income 27,638,173.86 39,981,131.96
VII. Earnings per share:
(i) Basic earnings per share 0.0265 0.0383
(ii) Diluted earnings per share 0.0265 0.0383
Legal Representative: Li Wei
Person in charge of accounting works: Pang Haitao
26
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Person in charge of accounting institute: Luo Bo
5. Consolidated Cash Flow Statement
In RMB
Items Current Period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and
3,904,690,858.42 3,116,283,648.67
providing labor services
Net increase of customer deposit and interbank
deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial
institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Net increase of amount from disposal financial
assets that measured by fair value and with variation
reckoned into current gains/losses
Cash received from interest, commission charge and
commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase of
securities
Write-back of tax received 67,038,256.22 142,336,736.25
Other cash received concerning operating activities 73,527,737.20 8,641,836.66
Subtotal of cash inflow arising from operating activities 4,045,256,851.84 3,267,262,221.58
Cash paid for purchasing commodities and receiving
4,065,487,408.62 3,209,115,632.97
labor service
Net increase of customer loans and advances
Net increase of deposits in central bank and
interbank
Cash paid for original insurance contract
compensation
Net increase of financial assets held for transaction
purposes
27
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Net increase of capital lent
Cash paid for interest, commission charge and
commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 446,317,342.30 415,551,393.88
Taxes paid 159,372,262.81 65,401,069.62
Other cash paid concerning operating activities 295,623,725.22 348,569,436.98
Subtotal of cash outflow arising from operating activities 4,966,800,738.95 4,038,637,533.45
Net cash flows arising from operating activities -921,543,887.11 -771,375,311.87
II. Cash flows arising from investing activities:
Cash received from recovering investment 430,000,000.00 540,000,000.00
Cash received from investment income 1,512,445.59 30,148,051.45
Net cash received from disposal of fixed, intangible
557,933.20 252,000.00
and other long-term assets
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities 30,122,236.60 29,832,743.55
Subtotal of cash inflow from investing activities 462,192,615.39 600,232,795.00
Cash paid for purchasing fixed, intangible and other
137,742,454.20 108,817,240.77
long-term assets
Cash paid for investment 424,000,000.00 1,080,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 5,481,620.00 10,010,000.00
Subtotal of cash outflow from investing activities 567,224,074.20 1,198,827,240.77
Net cash flows arising from investing activities -105,031,458.81 -598,594,445.77
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders’ investment by subsidiaries
Cash received from loans 470,219,380.02 607,619,100.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 470,219,380.02 607,619,100.00
Cash paid for settling debts 695,000,000.00 598,642,903.58
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Cash paid for dividend and profit distributing or
35,295,622.65 16,030,019.50
interest paying
Including: Dividend and profit of minority
shareholder paid by subsidiaries
Other cash paid concerning financing activities 25,073,514.40
Subtotal of cash outflow from financing activities 755,369,137.05 614,672,923.08
Net cash flows arising from financing activities -285,149,757.03 -7,053,823.08
IV. Influence on cash and cash equivalents due to
-7,529,242.84 -18,498,907.12
fluctuation in exchange rate
V. Net increase of cash and cash equivalents -1,319,254,345.79 -1,395,522,487.84
Add: Balance of cash and cash equivalents at the
4,484,643,187.93 5,089,765,770.39
period -begin
VI. Balance of cash and cash equivalents at the period
3,165,388,842.14 3,694,243,282.55
-end
Legal Representative: Li Wei
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Luo Bo
6. Cash Flow Statement of Parent Company
In RMB
Items Current Period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
2,044,451,401.10 1,622,336,432.60
labor services
Write-back of tax received 34,183,811.93 72,233,740.77
Other cash received concerning operating activities 14,223,467.81 208,146.11
Subtotal of cash inflow arising from operating activities 2,092,858,680.84 1,694,778,319.48
Cash paid for purchasing commodities and receiving
2,460,080,220.15 1,634,525,578.72
labor service
Cash paid to/for staff and workers 146,712,285.95 139,285,545.18
Taxes paid 27,729,284.95 16,622,857.79
Other cash paid concerning operating activities 105,382,944.46 78,553,787.65
Subtotal of cash outflow arising from operating activities 2,739,904,735.51 1,868,987,769.34
Net cash flows arising from operating activities -647,046,054.67 -174,209,449.86
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
II. Cash flows arising from investing activities:
Cash received from recovering investment 430,000,000.00 500,000,000.00
Cash received from investment income 1,512,445.59 30,015,681.60
Net cash received from disposal of fixed, intangible
500,000.00 220,000.00
and other long-term assets
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities 208,059,288.34 14,230,005.57
Subtotal of cash inflow from investing activities 640,071,733.93 544,465,687.17
Cash paid for purchasing fixed, intangible and other
54,735,486.93 34,937,488.72
long-term assets
Cash paid for investment 430,000,000.00 1,060,000,000.00
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 55,481,620.00 9,740,000.00
Subtotal of cash outflow from investing activities 540,217,106.93 1,104,677,488.72
Net cash flows arising from investing activities 99,854,627.00 -560,211,801.55
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 289,000,000.00 426,678,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 31,346,756.76 15,281,801.00
Subtotal of cash inflow from financing activities 320,346,756.76 441,959,801.00
Cash paid for settling debts 655,000,000.00 300,000,000.00
Cash paid for dividend and profit distributing or
32,672,266.77 13,430,070.19
interest paying
Other cash paid concerning financing activities 114,243,780.75 72,182,236.15
Subtotal of cash outflow from financing activities 801,916,047.52 385,612,306.34
Net cash flows arising from financing activities -481,569,290.76 56,347,494.66
IV. Influence on cash and cash equivalents due to
-4,061,294.11 -6,743,197.91
fluctuation in exchange rate
V. Net increase of cash and cash equivalents -1,032,822,012.54 -684,816,954.66
Add: Balance of cash and cash equivalents at the
2,894,384,811.05 3,410,029,424.54
period -begin
VI. Balance of cash and cash equivalents at the period -end 1,861,562,798.51 2,725,212,469.88
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Legal Representative: Li Wei
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Luo Bo
II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new financial
instrument rules, new revenue rules and new leasing rules
√ Applicable □Not applicable
(1) Consolidate balance sheet
In RMB
Items 2018-12-31 2019-1-1 Adjustment
Current assets:
Monetary fund 4,596,077,557.40 4,596,077,557.40
Transactional financial assets Not applicable 9,253,635.59 9,253,635.59
Financial assets measured by fair
value and with variation reckoned into 9,253,635.59 Not applicable -9,253,635.59
current gains/losses
Note receivable and account
4,058,819,532.50 4,043,930,389.93 -14,889,142.57
receivable
Including: Notes receivable 2,387,830,887.74 2,370,568,253.64 -17,262,634.10
Accounts receivable 1,670,988,644.76 1,673,362,136.29 2,373,491.53
Account paid in advance 86,180,459.26 86,180,459.26 0.00
Other account receivable 62,129,574.17 63,192,740.93 1,063,166.76
Including: Interest receivable 2,653,712.36 2,653,712.36
Inventories 2,174,436,573.67 2,174,436,573.67
Other current assets 1,184,686,956.96 1,184,686,956.96
Total current assets 12,171,584,289.55 12,157,758,313.74 -13,825,975.81
Non-current assets:
Available-for-sale financial assets 45,000,000.00 Not applicable -45,000,000.00
Long-term equity investments 61,869,440.55 61,869,440.55
Other non-current financial assets Not applicable 45,000,000.00 45,000,000.00
Investment real estate 46,846,507.41 46,846,507.41
Fixed assets 1,733,957,012.14 1,733,957,012.14
Construction in progress 464,558,352.60 464,558,352.60
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Intangible assets 817,579,958.94 817,579,958.94
Research and development costs 108,210,966.60 108,210,966.60
Deferred income tax assets 112,203,656.75 112,203,656.75
Total non-current assets 3,390,225,894.99 3,390,225,894.99
Total assets 15,561,810,184.54 15,547,984,208.73 -13,825,975.81
Current liabilities
Short-term borrowings 2,336,373,929.62 2,336,373,929.62
Transactional financial liability Not applicable 55,586,666.70 55,586,666.70
Financial liability measured by fair
value and with variation reckoned into 55,586,666.70 Not applicable -55,586,666.70
current gains/losses
Notes payable & account payable 6,009,929,380.98 6,009,929,380.98
Accounts received in advance 354,551,354.80 354,551,354.80
Wage payable 163,638,627.79 163,638,627.79
Taxes payable 109,753,432.17 109,753,432.17
Other accounts payable 660,320,360.26 660,320,360.26
Including: Interest payable 7,519,756.26 7,519,756.26
Dividend payable 17,317,286.45 17,317,286.45
Non-current liabilities due within
273,682,737.85 273,682,737.85
one year
Total current liabilities 9,963,836,490.17 9,963,836,490.17
Non-current liabilities:
Long-term loans 1,920,000.00 1,920,000.00
Long-term account payable 5,017,208.00 5,017,208.00
Projected liabilities 273,063,677.21 273,063,677.21
Deferred income 160,250,963.60 160,250,963.60
Deferred income tax liabilities 3,098,699.11 3,098,699.11
Other non-current liabilities 19,073,101.29 19,073,101.29
Total non-current liabilities 462,423,649.21 462,423,649.21
Total liabilities 10,426,260,139.38 10,426,260,139.38
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Capital public reserve 2,684,369,598.46 2,684,369,598.46
Other comprehensive income -18,143,569.26 -18,143,569.26
Surplus public reserve 400,673,993.50 399,082,433.26 -1,591,560.24
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Retained profit 904,232,582.87 896,383,462.85 -7,849,120.02
Total owner’s equity attributable to parent
5,015,730,486.57 5,006,289,806.31 -9,440,680.26
company
Minority interests 119,819,558.59 115,434,263.04 -4,385,295.55
Total owner’s equity 5,135,550,045.16 5,121,724,069.35 -13,825,975.81
Total liabilities and owner’s equity 15,561,810,184.54 15,547,984,208.73 -13,825,975.81
Statement of adjustment
The Company implemented the new financial instrument rules since 1 Jan. 2019, the “Financial assets
measured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactional financial
assets”, the “Financial assets available-for-sale” adjusted to “Other non-current financial assets”, the “Financial
liability measured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactional
financial liability”
In addition, according to the connection rules of the new financial instrument standards, the company does
not need to restate the previous comparables, and it’s unnecessary to adjust when the information presented in the
financial statements is not inconsistent with the requirements of the new standards. The difference between the
original book value of financial instrument and the new book value before the date of implementation of the
standards is adjusted and included in the retained earnings at the beginning of the period of 2019.
(2) Balance Sheet of Parent Company
In RMB
Item 2018-12-31 2019-1-1 Adjustment
Current assets:
Monetary fund 2,897,004,041.87 2,897,004,041.87
Transactional financial assets Not applicable 9,253,635.59 9,253,635.59
Financial assets measured by fair
value and with variation reckoned into 9,253,635.59 Not applicable -9,253,635.59
current gains/losses
Note receivable and account
3,483,525,970.01 3,467,513,069.95 -16,012,900.06
receivable
Including: Notes receivable 2,433,243,946.64 2,419,743,946.64 -13,500,000.00
Accounts receivable 1,050,282,023.37 1,047,769,123.31 -2,512,900.06
Account paid in advance 58,710,427.38 58,710,427.38 0.00
Other account receivable 182,744,033.52 182,841,331.20 97,297.68
Including: Interest receivable 2,653,712.36 2,653,712.36
Inventories 911,130,106.30 911,130,106.30
Other current assets 1,113,987,528.70 1,113,987,528.70
Total current assets 8,656,355,743.37 8,640,440,140.99 -15,915,602.38
Non-current assets:
Available-for-sale financial assets 45,000,000.00 Not applicable -45,000,000.00
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Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Long-term equity investments 1,731,109,903.70 1,731,109,903.70
Other non-current financial assets Not applicable 45,000,000.00 45,000,000.00
Investment real estate 7,618,550.16 7,618,550.16
Fixed assets 1,082,915,540.08 1,082,915,540.08
Construction in progress 125,064,106.10 125,064,106.10
Intangible assets 462,425,105.64 462,425,105.64
Research and development costs 57,383,653.72 57,383,653.72
Deferred income tax assets 78,357,299.17 78,357,299.17
Total non-current assets 3,589,874,158.57 3,589,874,158.57
Total assets 12,246,229,901.94 12,230,314,299.56 -15,915,602.38
Current liabilities
Short-term borrowings 1,911,719,726.13 1,911,719,726.13
Transactional financial liability Not applicable 19,893,875.00 19,893,875.00
Financial liability measured by fair
value and with variation reckoned into 19,893,875.00 Not applicable -19,893,875.00
current gains/losses
Notes payable & account payable 4,013,263,630.45 4,013,263,630.45
Accounts received in advance 105,815,140.88 105,815,140.88
Wage payable 31,271,182.48 31,271,182.48
Taxes payable 21,992,129.58 21,992,129.58
Other accounts payable 427,293,961.56 427,293,961.56
Including: Interest payable 5,801,215.14 5,801,215.14
Dividend payable 17,317,286.45 17,317,286.45
Non-current liabilities due within
258,588,504.48 258,588,504.48
one year
Total current liabilities 6,789,838,150.56 6,789,838,150.56
Non-current liabilities:
Long-term loans 1,920,000.00 1,920,000.00
Accrued liabilities 266,641,323.73 266,641,323.73
Deferred income 53,118,676.50 53,118,676.50
Other non-current liabilities 19,073,101.29 19,073,101.29
Total non-current liabilities 340,753,101.52 340,753,101.52
Total liabilities 7,130,591,252.08 7,130,591,252.08
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
34
Changhong Meiling Co., Ltd.The First Quarterly Report of 2019
Capital public reserve 2,753,017,007.10 2,753,017,007.10
Surplus reserve 400,455,827.82 398,864,267.58 -1,591,560.24
Retained profit 917,567,933.94 903,243,891.80 -14,324,042.14
Total owner’s equity 5,115,638,649.86 5,099,723,047.48 -15,915,602.38
Total liabilities and owner’s equity 12,246,229,901.94 12,230,314,299.56 -15,915,602.38
Statement of adjustment
The Company implemented the new financial instrument rules since 1 Jan. 2019, the “Financial assets
measured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactional financial
assets”, the “Financial assets available-for-sale” adjusted to “Other non-current financial assets”, the “Financial
liability measured by fair value and with its variation reckoned into current gain/loss” adjusted to “Transactional
financial liability”
In addition, according to the connection rules of the new financial instrument standards, the company does
not need to restate the previous comparables, and it’s unnecessary to adjust when the information presented in the
financial statements is not inconsistent with the requirements of the new standards. The difference between the
original book value of financial instrument and the new book value before the date of implementation of the
standards is adjusted and included in the retained earnings at the beginning of the period of 2019.
2. Retrospective adjustment of the comparative data for initial implementation of new financial instrument
rules and new leasing rules
□Applicable √Not applicable
III. Audit report
Whether the 1st quarterly report has been audited or not
□Yes √ No
The 1st quarterly report of the Company has not been audited.
Changhong Meiling Co., Ltd.
Chairman: Li Wei
20 April 2019
35
