Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Stock code: 000333 Stock abbreviation: Midea Group Announcement No.: 2021-108
Midea Group Co., Ltd.
Interim Report for the Third Quarter 2021
Midea Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the
Company’s Board of Directors have warranted that the information given in this Report is true, accurate
and complete, as well as free of any false record, misleading statement or material omission.
Important Reminders:
1. The Board of Directors, the Supervisory Committee as well as all the directors,
supervisors and senior management staff of the Company have warranted that this Report
contains no false record, misleading statement or material omission. And they shall be
jointly and severally liable for the truthfulness, accuracy and completeness of the
information given in this Report.
2. The legal representative, principal in charge of accounting and head of the accounting
department of the Company have represented and warranted that the financial information
in this Report is true, accurate and complete.
3. Is this Report audited by a CPAs firm?
□ Yes √ No
This report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
1. Key financial information
1.1 Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years?
□ Yes √ No
July-September January-
YoY Change (%) YoY Change (%)
2021 September 2021
Operating revenue (RMB'000) 87,532,404 12.66% 261,341,969 20.57%
Net profit attributable to
shareholders of the Company 8,446,204 4.40% 23,455,250 6.53%
(RMB'000)
Net profit attributable to
shareholders of the Company before
7,928,026 10.75% 22,564,537 9.45%
non-recurring gains and losses
(RMB'000)
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Net cash flows from operating
—— —— 27,896,744 11.52%
activities (RMB'000)
Basic earnings per share
1.24 6.90% 3.41 7.23%
(RMB/share)
Diluted earnings per share
1.23 6.03% 3.39 6.94%
(RMB/share)
Weighted average ROE (%) 7.30% -0.09% 19.51% -0.84%
30 September 2021 31 December 2020 Change (%)
Total assets (RMB'000) 376,333,770 360,382,603 4.43%
Total equity attributable to
shareholders of the Company 118,530,537 117,516,260 0.86%
(RMB'000)
1.2 Non-recurring gains and losses
√ Applicable □ N/A
Unit: RMB’000
January-September
Item July-September 2021 Note
2021
Gains and losses on disposal of non-current assets 77,247 60,162
Except for effectively hedging business related to
normal business operations of the Company, gains
and losses arising from the change in the fair value of
financial assets held for trading, derivative financial
assets, financial liabilities held for trading, derivative -21,422 -123,141
financial liabilities and other non-current financial
assets, as well as investment gains and losses
produced from the disposal of the aforesaid financial
assets and liabilities
Other 693,800 1,238,713
Less: Corporate income tax 219,783 284,055
Minority interests (after tax) 11,664 966
Total 518,178 890,713 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable √ N/A
No such cases for the Reporting Period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
as a recurring gain/loss item
□ Applicable √ N/A
No such cases for the Reporting Period.
1.3 Major changes of main items in financial statements and financial indicators, as well as the
reasons for the changes
√ Applicable □ N/A
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Unit: RMB’000
30 September 31 December
Financial statement items 2021/January- 2020/January- Change
Reasons for the changes
(consolidated) September September (%)
2021 2020
Mainly due to the decreased term
Cash at bank and on hand 55,870,709 81,210,482 -31.20%
deposits
Mainly due to the decreased structured
Financial assets held for trading 11,219,571 28,239,601 -60.27%
deposits
Mainly due to the changes in the fair
Derivative financial assets 183,340 420,494 -56.40%
value of derivative financial instruments
Mainly due to the increased advances
Advances to suppliers 3,621,966 2,763,710 31.05%
to material suppliers
Mainly due to the increased monetary
Other current assets 65,891,409 33,079,918 99.19%
investment products
Mainly due to the transfer to the current
Other debt investments 11,511,716 21,456,155 -46.35%
portion of non-current assets
Other non-current financial Mainly due to the increased equity
5,325,750 3,360,849 58.46%
assets investments
Mainly due to the increased business
Investment properties 887,837 405,559 118.92%
combinations
Mainly due to the increased
Construction in progress 2,148,934 1,477,302 45.46%
construction in progress
Customer deposits and deposits Mainly due to the changes in the
from banks and other financial 26,783 87,535 -69.40% business operations of Midea Group
institutions Finance
Mainly due to the changes in the fair
Derivative financial liabilities 82,478 161,225 -48.84%
value of derivative financial instruments
Current portion of non-current Mainly due to the repayment of
2,017,084 6,310,181 -68.03%
liabilities borrowings
Mainly due to the increased government
Deferred income 1,103,615 779,729 41.54%
subsidies received
Mainly due to the increased share
Treasury stock 14,188,847 6,094,347 132.82%
repurchase
Mainly due to the acquisition of Beijing
Minority interests 9,774,931 6,720,840 45.44%
Wandong Medical Technology Co., Ltd.
Mainly due to the changes in the
Interest income 1,600,306 992,158 61.30% business operations of Midea Group
Finance
Research and development Mainly due to the increased research
8,764,926 6,715,806 30.51%
expenses and development investments
Mainly due to the increased interest
Financial expenses -3,349,461 -1,462,390 -129.04%
income
Gains/(losses) on changes in fair Mainly due to the changes in the fair
-924,798 1,123,644 -182.30%
value value of financial assets
Mainly due to the decreased losses on
Credit impairment losses -204,276 -615,091 66.79%
bad debts of accounts receivable
Mainly due to the increased gains on
Losses on disposal of assets 57,969 -36,917 257.03%
disposal of non-current assets
Mainly due to the increased other
Non-operating income 406,215 223,576 81.69%
income
Net profit attributable to minority Mainly due to the increased profits of
237,578 175,702 35.22%
interests non-wholly-owned subsidiaries
Net cash flows from investing Mainly due to the increased cash
6,680,656 -32,098,571 120.81%
activities received from disposal of investments
-27,666,525 8,101,376 -441.50% Mainly due to the decreased cash
Net cash flows from financing
received from issuance of short-term
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
activities financing bonds
Net increase in cash and cash Mainly due to the increased net cash
6,662,307 870,074 665.72%
equivalents flows from investing activities
2. Shareholder information
2.1 Total number of ordinary shareholders and preference shareholders with resumed voting
rights, as well as shareholdings of the top ten shareholders at the period-end
Unit: share
Total number of preference
Total number of ordinary shareholders at shareholders with resumed
455,639 0
the period-end voting rights at the
period-end (if any)
Top ten shareholders
Sharehol Pledged or frozen
Number of shares
Nature of ding Number of
Name of shareholder restricted
shareholder percenta shares held
shares held Status of Number of
ge (%) shares shares
Domestic
Midea Holding Co., Ltd. non-state-owned 31.06 2,169,178,713 Pledged 100,000,000
corporation
Hong Kong Securities Clearing Foreign
18.61 1,299,563,430 - -
Company Limited corporation
Domestic
China Securities Finance Co., Ltd. non-state-owned 2.84 198,145,134 - -
corporation
Domestic
Fang Hongbo 1.68 116,990,492 87,742,869 - -
individual
Canada Pension Plan Investment
Foreign
Board－ own funds (stock 1.49 103,913,897 - -
corporation
exchange)
Central Huijin Asset Management State-owned
1.29 90,169,354 - -
Ltd. corporation
Domestic
Huang Jian 1.23 86,140,000 - -
individual
Foreign
Li Jianwei 0.72 - -
individual 50,100,000
Domestic
Huang Xiaoxiang 0.56 39,257,832 Pledged 14,779,556
individual
Domestic
Yuan Liqun 0.54 37,888,882 - -
individual
Top ten non-restricted ordinary shareholders
Number of non-restricted Type of shares
Name of shareholder ordinary shares held at the
Type Number
period-end
RMB-denominated
Midea Holding Co., Ltd. 2,169,178,713 2,169,178,713
ordinary share
RMB-denominated
Hong Kong Securities Clearing Company Limited 1,299,563,430 1,299,563,430
ordinary share
RMB-denominated
China Securities Finance Co., Ltd. 198,145,134 198,145,134
ordinary share
Canada Pension Plan Investment Board－ own funds RMB-denominated
103,913,897 103,913,897
(stock exchange) ordinary share
RMB-denominated
Central Huijin Asset Management Ltd. 90,169,354 90,169,354
ordinary share
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
RMB-denominated
Huang Jian 86,140,000 86,140,000
ordinary share
RMB-denominated
Li Jianwei 50,100,000 50,100,000
ordinary share
RMB-denominated
Huang Xiaoxiang 39,257,832 39,257,832
ordinary share
RMB-denominated
Yuan Liqun 37,888,882 37,888,882
ordinary share
RMB-denominated
Merrill Lynch International 37,191,573 37,191,573
ordinary share
Explanation of related relationship or/and
acting-in-concert parties among the above-mentioned N/A
shareholders
The Company’s shareholder Huang Xiaoxiang holds 28,679,832
shares in the Company through his common securities account
and 10,578,000 shares in the Company through his account of
collateral securities for margin trading, representing a total
holding of 39,257,832 shares in the Company.
Top ten non-restricted ordinary shareholders taking
part in securities margin trading
The Company’s shareholder Yuan Liqun holds 705,000 shares
in the Company through her common securities account and
37,183,882 shares in the Company through her account of
collateral securities for margin trading, representing a total
holding of 37,888,882 shares in the Company.
Note: 116,828,832 ordinary shares (or 1.67% of the Company’s total share capital) were held in the special account for
repurchased shares of Midea Group Co., Ltd. at the end of the Reporting Period.
2.2 Total number of preference shareholders and shareholdings of the top ten preference
shareholders at the period-end
□ Applicable √ N/A
3. Other significant events
□ Applicable √ N/A
4. Financial statements
4.1 Financial statements
4.1.1 Consolidated and Company balance sheets
Consolidated and Company Balance Sheets
Prepared by Midea Group Co., Ltd. As at 30 September 2021 Unit: RMB’000
30 September 2021 31 December 2020 30 September 2021 31 December 2020
ASSETS
Consolidated Consolidated Company Company
Current assets
Cash at bank and on hand 55,870,709 81,210,482 42,060,082 49,240,180
Financial assets held for trading 11,219,571 28,239,601 6,405,484 16,614,658
Derivative financial assets 183,340 420,494 - -
Notes receivable 6,044,674 5,304,510 - -
Accounts receivable 25,984,593 22,978,363 - -
Receivables financing 15,622,773 13,901,856 - -
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Advances to suppliers 3,621,966 2,763,710 76,720 45,306
Contract assets 4,098,681 3,236,848 - -
Loans and advances 20,228,082 16,469,069 - -
Other receivables 2,968,794 2,973,945 32,579,418 28,318,670
Inventories 33,198,146 31,076,529 - -
Current portion of non-current assets 14,204,709 - 13,524,924 -
Other current assets 65,891,409 33,079,918 57,116,390 20,533,745
Total current assets 259,137,447 241,655,325 151,763,018 114,752,559
Non-current assets
Other debt investments 11,511,716 21,456,155 9,769,859 20,064,155
Long-term receivables 1,102,818 981,623 - -
Loans and advances 942,420 1,113,501 - -
Long-term equity investments 3,762,188 2,901,337 63,318,896 54,991,161
Investments in other equity instruments 43,866 46,651 - -
Other non-current financial assets 5,325,750 3,360,849 695,688 80,937
Investment properties 887,837 405,559 450,200 476,839
Fixed assets 22,415,206 22,239,214 659,683 749,835
Construction in progress 2,148,934 1,477,302 679,537 204,304
Right-of-use assets 2,129,219 12,964
Intangible assets 17,651,834 15,422,393 672,592 684,997
Goodwill 28,857,740 29,557,218 - -
Long-term prepaid expenses 1,288,533 1,300,962 77,418 97,078
Deferred tax assets 7,680,751 7,208,635 286,823 287,360
Other non-current assets 11,447,511 11,255,879 10,535,554 10,141,031
Total non-current assets 117,196,323 118,727,278 87,159,214 87,777,697
TOTAL ASSETS 376,333,770 360,382,603 238,922,232 202,530,256
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
Consolidated and Company Balance Sheets (Cont’d)
Prepared by Midea Group Co., Ltd. As at 30 September 2021 Unit: RMB’000
30 September 2021 31 December 2020 30 September 2021 31 December 2020
LIABILITIES AND SHAREHOLDERS’ EQUITY
Consolidated Consolidated Company Company
Current liabilities
Short-term borrowings 8,179,959 9,943,929 - 799,314
Borrowings from the Central Bank 19,841 - - -
Customer deposits and deposits from
26,783 87,535 - -
banks and other financial institutions
Derivative financial liabilities 82,478 161,225 - -
Notes payable 32,082,602 28,249,939 - -
Accounts payable 61,601,702 53,930,261 - -
Contract liabilities 20,326,814 18,400,922 - -
Employee benefits payable 6,323,912 6,954,822 557,932 562,954
Taxes payable 4,333,343 5,758,058 874,220 1,326,219
Other payables 4,553,324 4,501,391 172,317,366 123,120,354
Current portion of non-current liabilities 2,017,084 6,310,181 8,127 4,000,000
Other current liabilities 49,188,675 49,852,239 2,172 3,048,794
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Total current liabilities 188,736,517 184,150,502 173,759,817 132,857,635
Non-current liabilities
Long-term borrowings 48,636,926 42,827,287 12,600,000 5,800,000
Lease liabilities 1,417,967 4,912
Long-term payables 1,115 13,260 - -
Provisions 353,284 298,110 - -
Deferred income 1,103,615 779,729 - -
Long-term employee benefits payable 1,716,207 2,159,675 - -
Deferred tax liabilities 5,373,260 5,223,954 70,527 67,792
Other non-current liabilities 689,411 692,986 - -
Total non-current liabilities 59,291,785 51,995,001 12,675,439 5,867,792
Total liabilities 248,028,302 236,145,503 186,435,256 138,725,427
Shareholders’ equity
Share capital 6,984,237 7,029,976 6,984,237 7,029,976
Capital surplus 19,386,312 22,488,105 26,220,162 29,123,547
Less: Treasury stock (14,188,847) (6,094,347) (14,188,847) (6,094,347)
Other comprehensive income (1,691,296) (1,549,003) 2,917 (16,009)
General risk reserve 587,984 587,984 - -
Special reserve 14,842 12,730 - -
Surplus reserve 7,966,362 7,966,362 7,966,362 7,966,362
Undistributed profits 99,470,943 87,074,453 25,502,145 25,795,300
Total equity attributable to shareholders of
118,530,537 117,516,260 52,486,976 63,804,829
the Company
Minority interests 9,774,931 6,720,840 - -
Total shareholders’ equity 128,305,468 124,237,100 52,486,976 63,804,829
TOTAL LIABILITIES AND SHAREHOLDERS’
376,333,770 360,382,603 238,922,232 202,530,256
EQUITY
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
4.1.2 Consolidated and Company income statements for the nine months ended 30 September
2021
Consolidated and Company Income Statements
Prepared by Midea Group Co., Ltd. For the nine months ended 30 September 2021 Unit: RMB’000
For the nine For the nine For the nine For the nine
months ended 30 months ended 30 months ended 30 months ended 30
Item September 2021 September 2020 September 2021 September 2020
Consolidated Consolidated Company Company
Total revenue 262,942,589 217,753,150 1,381,918 1,336,559
Including: Operating revenue 261,341,969 216,760,786 1,381,918 1,336,559
Interest income 1,600,306 992,158 - -
Fee and commission income 314 206 - -
Total operating cost (237,666,842) (194,931,822) 865,983 620,765
Including: Cost of sales (199,138,296) (161,943,461) (26,639) (39,989)
Interest costs (76,088) (95,096) - -
Fee and commission expenses (5,209) (9,243) - -
Taxes and surcharges (1,172,144) (1,152,606) (31,835) (27,730)
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Selling and distribution expenses (24,405,142) (20,179,953) - -
General and administrative expenses (7,454,498) (6,298,047) (701,472) (384,608)
Research and development expenses (8,764,926) (6,715,806) - -
Financial income 3,349,461 1,462,390 1,625,929 1,073,092
Including: Interest expenses (989,334) (954,362) (1,671,992) (1,378,594)
Interest income 3,842,498 2,664,883 3,318,208 2,467,387
Add: 1,043,294 1,098,444 102,686 124,619
Investment income 1,999,228 1,646,879 8,764,498 10,941,133
Including: Investment income from associates
410,522 390,672 195,952 185,464
and joint ventures
Gains/(Losses) on changes in fair value (924,798) 1,123,644 (239,518) 424,720
Asset impairment losses (171,668) (162,323) - -
Credit impairment losses (204,276) (615,091) (492) (5,790)
Losses on disposal of assets 57,969 (36,917) (891) 43
Operating profit 27,075,496 25,875,964 10,874,184 13,442,049
Add: 406,215 223,576 31,299 10,196
Less: Non-operating expenses (139,501) (151,595) (48,782) (91,306)
Total profit 27,342,210 25,947,945 10,856,701 13,360,939
Less: Income tax expenses (3,649,382) (3,753,942) (88,176) (57,984)
Net profit 23,692,828 22,194,003 10,768,525 13,302,955
(1) Classified by continuity of operations
Net profit from continuing operations 23,692,828 22,194,003 10,768,525 13,302,955
Net profit from discontinued operations - - - -
(2) Classified by ownership of the equity
Attributable to shareholders of the Company 23,455,250 22,018,301 10,768,525 13,302,955
Minority interests 237,578 175,702 - -
Other comprehensive income, net of tax (180,401) (802,684) 18,926 (7,965)
Other comprehensive income attributable to equity
(139,373) (492,675) 18,926 (7,965)
owners of the Company, net of tax
(1) Other comprehensive income items which will not be
131,437 (90,143) - -
reclassified subsequently to profit or loss
1) Changes arising from remeasurement of
129,967 (90,143) - -
defined benefit plan
2) Changes in fair value of investments in other
1,470 - - -
equity instruments
(2) Other comprehensive income items which will be
(270,810) (402,532) 18,926 (7,965)
reclassified subsequently to profit or loss
1) Other comprehensive income that will be
transferred subsequently to profit or loss 15,944 (12,495) 18,926 (7,965)
under the equity method
2) Cash flow hedging reserve (199,762) 411,163 - -
3) Differences on translation of foreign currency
(86,992) (801,200) - -
financial statements
Other comprehensive income attributable to minority
(41,028) (310,009) - -
shareholders, net of tax
Total comprehensive income 23,512,427 21,391,319 10,787,451 13,294,990
Attributable to equity owners of the Company 23,315,877 21,525,626 10,787,451 13,294,990
Attributable to minority interests 196,550 (134,307) - -
Earnings per share:
(1) Basic earnings per share 3.41 3.18 Not applicable Not applicable
(2) Diluted earnings per share 3.39 3.17 Not applicable Not applicable
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
4.1.3 Consolidated and Company cash flow statements for the nine months ended 30 September
2021
Consolidated and Company Cash Flow Statements
Prepared by Midea Group Co., Ltd. For the nine months ended 30 September 2021 Unit: RMB’000
For the nine For the nine For the nine For the nine
months ended 30 months ended 30 months ended 30 months ended 30
Item September 2021 September 2020 September 2021 September 2020
Consolidated Consolidated Company Company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of
227,937,641 182,997,506 - -
services
Net decrease in deposits with the Central Bank,
1,347,924 61,267 - -
banks and other financial institutions
Net increase in borrowings from the Central Bank 19,841 - - -
Cash received from interest, fee and commission 1,536,829 1,011,706 - -
Refund of taxes and surcharges 6,789,422 4,574,603 - -
Cash received relating to other operating activities 4,897,712 4,047,145 51,113,226 28,363,419
Sub-total of cash inflows 242,529,369 192,692,227 51,113,226 28,363,419
Cash paid for goods and services (149,209,825) (105,250,492) - -
Net increase in loans and advances (3,676,530) (5,257,382) - -
Net decrease in customer deposits and deposits
(60,752) (6,424) - -
from banks and other financial institutions
Cash paid for interest, fee and commission (82,085) (105,503) - -
Cash paid to and on behalf of employees (24,558,796) (21,507,371) (12,798) (19,492)
Payments of taxes and surcharges (11,392,788) (10,611,998) (437,678) (322,104)
Cash paid relating to other operating activities (25,651,849) (24,938,422) (6,070,874) (5,651,559)
Sub-total of cash outflows (214,632,625) (167,677,592) (6,521,350) (5,993,155)
Net cash flows from operating activities 27,896,744 25,014,635 44,591,876 22,370,264
2. Cash flows from investing activities
Cash received from disposal of investments 104,890,385 82,922,131 43,296,962 66,110,300
Cash received from returns on investments 4,360,871 3,554,642 11,345,718 12,156,396
Net cash received from disposal of fixed assets,
236,010 47,157 86 255
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
182,133 43,344 - -
other business units
Cash received relating to other investing activities 10,251 - - -
Sub-total of cash inflows 109,679,650 86,567,274 54,642,766 78,266,951
Cash paid to acquire fixed assets, intangible assets
(5,875,219) (3,206,463) (573,214) (166,141)
and other long-term assets
Cash paid to acquire investments (95,094,863) (114,914,846) (60,960,461) (89,827,000)
Net cash paid to acquire subsidiaries and other
(2,028,912) (544,536) - -
business units
Sub-total of cash outflows (102,998,997) (118,665,845) (61,533,675) (89,993,141)
Net cash flows from investing activities 6,680,656 (32,098,571) (6,890,909) (11,726,190)
3. Cash flows from financing activities
Cash received from capital contributions 1,474,377 2,351,094 1,431,805 2,351,094
Including: Cash received from capital contributions
by minority shareholders of 42,572 - - -
subsidiaries
Cash received from borrowings 13,864,476 12,222,629 6,800,000 799,314
Cash received from issuance of short-term
2,999,629 21,998,500 2,999,629 21,998,500
financing bonds
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Cash received relating to other financing activities 51,159 13,276 - -
Sub-total of cash inflows 18,389,641 36,585,499 11,231,434 25,148,908
Cash repayments of borrowings (12,723,723) (5,068,760) (4,799,314) (350,064)
Cash paid for repayment of short-term financing
(6,000,000) (9,000,000) (6,000,000) (9,000,000)
bonds
Cash payments for interest expenses and
(12,415,831) (12,277,952) (12,871,936) (12,348,759)
distribution of dividends or profits
Including: Cash payments for dividends or profit to
(289,414) (173,752) - -
minority shareholders of subsidiaries
Cash payments relating to other financing activities (14,916,612) (2,137,411) (13,807,786) (2,024,942)
Sub-total of cash outflows (46,056,166) (28,484,123) (37,479,036) (23,723,765)
Net cash flows from financing activities (27,666,525) 8,101,376 (26,247,602) 1,425,143
4. Effect of foreign exchange rate changes on
cash (248,568) (147,366) - -
and cash equivalents
5. Net increase in cash and cash equivalents 6,662,307 870,074 11,453,365 12,069,217
Add: Cash and cash equivalents at the beginning of
23,548,508 30,441,760 16,595,063 12,408,650
the period
6. Cash and cash equivalents at the end of the
30,210,815 31,311,834 28,048,428 24,477,867
period
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
4.2 Adjustments to the financial statements
4.2.1 Adjustments to financial statement items at the beginning of the year of the first
implementation of the new accounting standards governing leases which have been
implemented since 2021
√ Applicable □ N/A
Whether any balance sheet items at the beginning of the year requires adjustment
√ Yes □ No
Consolidated and Company Balance Sheets
Prepared by Midea Group Co., Ltd. Unit: RMB’000
Consolidated Company
ASSETS
2020-12-31 2021-01-01 Adjustment 2020-12-31 2021-01-01 Adjustment
Current assets
Cash at bank and on hand 81,210,482 81,210,482 - 49,240,180 49,240,180 -
Financial assets held for trading 28,239,601 28,239,601 - 16,614,658 16,614,658 -
Derivative financial assets 420,494 420,494 - - - -
Notes receivable 5,304,510 5,304,510 - - - -
Accounts receivable 22,978,363 22,978,363 - - - -
Receivables financing 13,901,856 13,901,856 - - - -
Advances to suppliers 2,763,710 2,763,710 - 45,306 45,306 -
Contract assets 3,236,848 3,236,848 - -
Loans and advances 16,469,069 16,469,069 - - - -
Other receivables 2,973,945 2,973,945 - 28,318,670 28,318,670 -
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Inventories 31,076,529 31,076,529 - - - -
Other current assets 33,079,918 33,079,918 - 20,533,745 20,533,745 -
Total current assets 241,655,325 241,655,325 - 114,752,559 114,752,559 -
Non-current assets
Other debt investments 21,456,155 21,456,155 - 20,064,155 20,064,155 -
Long-term receivables 981,623 981,623 - - - -
Loans and advances 1,113,501 1,113,501 - - - -
Long-term equity investments 2,901,337 2,901,337 - 54,991,161 54,991,161 -
Investments in other equity
46,651 46,651 - - - -
instruments
Other non-current financial assets 3,360,849 3,360,849 - 80,937 80,937 -
Investment properties 405,559 405,559 - 476,839 476,839 -
Fixed assets 22,239,214 22,212,866 (26,348) 749,835 749,835 -
Construction in progress 1,477,302 1,477,302 - 204,304 204,304 -
Right-of-use assets - 2,155,516 2,155,516 - 10,340 10,340
Intangible assets 15,422,393 15,422,393 - 684,997 684,997 -
Goodwill 29,557,218 29,557,218 - - - -
Long-term prepaid expenses 1,300,962 1,300,962 - 97,078 97,078 -
Deferred tax assets 7,208,635 7,208,635 - 287,360 287,360 -
Other non-current assets 11,255,879 11,255,879 - 10,141,031 10,141,031 -
Total non-current assets 118,727,278 120,856,446 2,129,168 87,777,697 87,788,037 10,340
TOTAL ASSETS 360,382,603 362,511,771 2,129,168 202,530,256 202,540,596 10,340
Consolidated and Company Balance Sheets (Cont’d)
Prepared by Midea Group Co., Ltd. Unit: RMB’000
LIABILITIES AND SHAREHOLDERS’ Consolidated Company
EQUITY 2020-12-31 2021-01-01 Adjustment 2020-12-31 2021-01-01 Adjustment
Current liabilities
Short-term borrowings 9,943,929 9,943,929 - 799,314 799,314 -
Customer deposits and deposits
from banks and other financial 87,535 87,535 - - - -
institutions
Derivative financial liabilities 161,225 161,225 - - - -
Notes payable 28,249,939 28,249,939 - - - -
Accounts payable 53,930,261 53,930,261 - - - -
Contract liabilities 18,400,922 18,400,922 - - - -
Employee benefits payable 6,954,822 6,954,822 - 562,954 562,954 -
Taxes payable 5,758,058 5,758,058 - 1,326,219 1,326,219 -
Other payables 4,501,391 4,501,391 - 123,120,354 123,120,354 -
Current portion of non-current
6,310,181 6,939,183 629,002 4,000,000 4,007,693 7,693
liabilities
Other current liabilities 49,852,239 49,852,239 - 3,048,794 3,048,794 -
Total current liabilities 184,150,502 184,779,504 629,002 132,857,635 132,865,328 7,693
Non-current liabilities
Long-term borrowings 42,827,287 42,827,287 - 5,800,000 5,800,000 -
Lease liabilities 1,513,426 1,513,426 - 2,647 2,647
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
Long-term payables 13,260 - (13,260) - - -
Provisions 298,110 298,110 - - - -
Deferred income 779,729 779,729 - - - -
Long-term employee benefits
2,159,675 2,159,675 - - - -
payable
Deferred tax liabilities 5,223,954 5,223,954 - 67,792 67,792 -
Other non-current liabilities 692,986 692,986 - - - -
Total non-current liabilities 51,995,001 53,495,167 1,500,166 5,867,792 5,870,439 2,647
Total liabilities 236,145,503 238,274,671 2,129,168 138,725,427 138,735,767 10,340
Shareholders’ equity
Share capital 7,029,976 7,029,976 - 7,029,976 7,029,976 -
Capital surplus 22,488,105 22,488,105 - 29,123,547 29,123,547 -
Less: Treasury stock (6,094,347) (6,094,347) - (6,094,347) (6,094,347) -
Other comprehensive income (1,549,003) (1,549,003) - (16,009) (16,009) -
General risk reserve 587,984 587,984 - - - -
Special reserve 12,730 12,730 - - - -
Surplus reserve 7,966,362 7,966,362 - 7,966,362 7,966,362 -
Undistributed profits 87,074,453 87,074,453 - 25,795,300 25,795,300 -
Total equity attributable to
117,516,260 117,516,260 - 63,804,829 63,804,829 -
shareholders of the Company
Minority interests 6,720,840 6,720,840 - - - -
Total shareholders’ equity 124,237,100 124,237,100 - 63,804,829 63,804,829 -
TOTAL LIABILITIES AND
360,382,603 362,511,771 2,129,168 202,530,256 202,540,596 10,340
SHAREHOLDERS’ EQUITY
Notes to the adjustments
Pursuant to the Notice of Revising and Issuing the Accounting Standard No. 21 for Business
Enterprises—Leases (CK [2018] No. 35) issued by the Ministry of Finance on 7 December 2018, the
Company has adopted, starting from 1 January 2021, the revised Accounting Standard No. 21 for
Business Enterprises—Leases (hereinafter referred to as the “New Lease Standard”). According to the
New Lease Standard, the Company chooses to adjust the amounts of retained earnings and other
relevant financial statement items at the beginning of the year of the first implementation of the New
Lease Standard based on the cumulative effects arising from the first implementation of the New Lease
Standard, with no adjustments to comparable data. For finance leases before the first implementation
date, the Company recognizes right-of-use assets and lease liabilities based on the original carrying
amounts of the assets held under the finance leases and the finance lease payables respectively on the
first implementation date. For operating leases other than short-term leases and leases of low-value
assets before the first implementation date, the Company recognizes lease liabilities on the first
implementation date based on the present value of the balances of lease payables discounted using the
interest rate of the Company’s incremental borrowings on the first implementation date, and recognizes
right-of-use assets by making necessary adjustments to prepaid rents based on amounts equivalent to
lease liabilities.
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Interim Report for the Third Quarter 2021 of Midea Group Co., Ltd.
4.2.2 Retrospective adjustments to comparative data of the previous period due to the first
implementation of the new accounting standards leases since 2021
□ Applicable √ N/A
4.3 Auditor’s report
Is this Report audited by a CPAs firm?
□ Yes √ No
This Report is not audited by a CPAs firm.
The Board of Directors of Midea Group Co., Ltd.
30 October 2021
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