合肥美菱股份有限公司
2009 年度中期报告
Mid-term Report Of Hefei Meiling Co., Ltd.2
[Important Notice]
Board of Directors and Supervisory Committee of Hefei Meiling Co., Ltd.(hereinafter
referred to as the Company) and its directors, supervisors and senior executives hereby assure
that there are no false records, misleading statements or significant omissions in this report,
and would shoulder any individual and joint responsibility concerning the authenticity,
accuracy and completeness of the contents in this report.
Principal of the Company Mr. Zhao Yong, Vice-president Mr. Yu Wanchun and Minster of
Financial Department Mr. Wang Shaozhuo hereby confirm that the Financial Report of the
Semi-annual Report is true and complete.
The Semi-annual Financial Report of the Company has not been audited.3
Contents
SECTION I. COMPANY PROFILE--------------------------------------------------------------------------------4
SECTION II. CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHARES HELD BY
MAIN SHAREHOLDERS---------------------------------------------------------------------------------------------7
SECTION III. PARTICULARS ABOUT DIRECTORS, SUPERVISORS AND SENIOR
EXECUTIVES-----------------------------------------------------------------------------------------------------------10
SECTION IV. DELIBERATION AND ANALYSIS OF THE MANAGEMENT---------------------------11
SECTION V. SIGNIFICANT EVENTS----------------------------------------------------------------------------14
SECTION VI. FINANCIAL REPORT (UN-AUDITED)-------------------------------------------------------21
SECTION VII. DOCUMENTS AVAILABLE FOR REFERENCE-----------------------------------------1044
Section I. Company Profile
I. Company Profile
1. Legal Name of the Company
In Chinese: 合肥美菱股份有限公司
In English: HEFEI MEILING CO., LTD
Short Form in English: HFML
2. Stock Exchange Listed with: Shenzhen Stock Exchange
Short Form: MEILING DIANQI Stock Code: 000521
WANMEILING-B Stock Code: 200521
3. Registered Address: No. 2163, Lian Hua Road, Economic and Technology Development
Zone, Hefei
Office Address: No. 2163, Lian Hua Road, Economic and Technology Development Zone,
Hefei
Post Code: 230001
The Company’s Internet Website: http://www.meiling.com
E-mail: info@meiling.com
4. Legal Representative: Zhao Yong
5. Secretary of the Board and Securities Affairs Representative
Secretary of the Board: Li Xia
Contact Address: No. 2163, Lian Hua Road, Economic and Technology Development Zone,
Hefei
Tel.: (0551)2219021 Fax: (0551)-2219021
E-mail: lixia@meiling.com
Securities Affairs Representative: Qi Dunwei
Tel.: (0551)- 2219021 Fax: (0551)-2219021
E-mail: qi_dunwei@sohu.com
6. Newspapers Chosen by the Company for Disclosing the Information: Securities Times, and
Hong Kong Wen Wei Po
Internet Website for Publishing the Semi-annual Report of the Company:
http://www.cninfo.com.cn
Place Where the Semi-annual Report is Prepared and Placed: Secretariat of the Board on the
2nd floor of the Office Building of the Company
7. Other related information
Initial registration date: December 31, 1992
Registration address: Hefei Municipal Administration Bureau of Industrial and Commerce5
Registration date after change: May 19, 2008
Address for change: Anhui Province Administration Bureau of Industrial and Commerce
Legal Person Business License Registration No.: 340000400001278
Taxation Registration No.: GSWZi No.34010414918555X
II. Major financial data and indexes
Unit: RMB
At the end of this report
period
At the period-end of
last year
Increase/decrease at the
end of this report period
compared with that in
period-end of last year
(%)
Total assets 4,041,883,537.45 3,390,314,408.86 19.22%
Owners’ equity attributable to shareholders
of the listed company
1,144,360,441.23 1,060,231,039.59 7.94%
Share capital 413,642,949.00 413,642,949.00 0.00%
Net assets per share attributable to
shareholders of the listed company
2.77 2.56 8.20%
This report period
(Jan. to Jun.)
The same period of
last year
Increase/decrease in this
report period
year-on-year (%)
Total operating income 2,562,440,855.44 2,493,197,467.74 2.78%
Operating profit 28,379,587.30 11,187,240.53 153.68%
Total profit 33,512,487.95 11,850,272.55 182.80%
Net profit attributable to shareholders of the
listed company
30,381,054.02 14,184,663.42 114.18%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
18,957,532.94 13,521,631.40 40.20%
Basic earnings per share (RMB/Share) 0.0734 0.0343 113.99%
Diluted earnings per share (RMB/Share) 0.0734 0.0343 113.99%
Return on equity (%) 2.65% 1.34% 1.31%
Net cash flow arising from operating
activities
-12,396,321.46 109,506,759.13 -111.32%
Net cash flow per share arising from
operating activities (RMB/Share)
-0.03 0.26 -111.54%
Notes: items of non-recurring gains and losses deducted and amounts:
Items of non-recurring gains and losses Amount
(1) Gains and losses from the disposal of non-current assets 23,520.20
(2) Governmental subsidy reckoned into current gains and losses, but closely
relevant to the Company’s business except for the governmental subsidy enjoyed
in quota or ration according to the national general standards
4,218,963.786
(3) Net amount of non-operating income and expense excluded the
aforementioned items
48,381.21
(4) Investment gains from the disposal of financial assets available for sales 7,132,655.89
(5) Other non-recurring gains and losses recognized by CSRC 0.00
Total 11,423,521.08
III. Impact on net profit after adjustment in line with IAS:
Unit: RMB’000
Item Net profit Net assets
As reported under Accounting System of Enterprise 30,381 1,144,360
Adjustment based on IFRS: - -
Provision for maintenance expense - -
Recalculation of financial assets in according with
IAS 39 - -
Depreciation of fixed assets - -
Amortization of intangible asset - -
Listed after adjustment according to International
Accounting Standards 30,381 1,144,360
IV. Supplementary profit statement
Return on equity Earnings per share
Items
Profit in the
report period
Fully diluted
Weighted
average
Basic earnings
per share
Diluted earnings
per share
Net profit attributable to common
shareholders
30,381,054.02 2.65% 2.83% 0.0734 0.0734
Net profit attributable to common
shareholders after deducting the
non-recurring losses and gains
18,957,532.94 1.66% 1.77% 0.0458 0.04587
Section II. Changes in Share Capital and Particulars about Shares Held by
Main Shareholders
I. Particulars about change in share capital during the report period
Unit: Share
Before the change Increase/decrease of this time (+, -) After the change
Amount Proportion
New
shares
issued
Bon
us
shar
es
Capitali
zation of
public
reserve
Others Subtotal Amount
Proporti
on
I. Restricted shares 113,816,066 27.52% 113,816,066 27.52%
1. State-owned shares 32,078,846 7.76% -32,078,846 -32,078,846 0 0
2. State-owned legal
person’s shares
70,845,677 17.13% +32,078,846 +32,078,846 102,924,523 24.89%
3. Other domestic shares 10,814,973 2.61% 10,814,973 2.61%
Including: Domestic
non-state-owned legal
person’s shares
10,814,973 2.61% 10,814,973 2.61%
Domestic natural
person’s shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
5. Senior executives’
shares
76,570 0.02% 76,570 0.02%
II. Unrestricted shares 299,826,883 72.48% 299,826,883 72.48%
1. RMB Ordinary shares 186,726,883 45.14% 186,726,883 45.14%
2. Domestically listed
foreign shares
113,100,000 27.34% 113,100,000 27.34%
3. Overseas listed8
foreign shares
4. Others
III. Total shares 413,642,949 100.00% 413,642,949
100.00
%
II. About shareholders
1. Particular about amount of shareholders and shares held by the shareholders
Unit: Share
Total amount of shareholders 120,288
Particulars about shares held by the top ten shareholders
Full name of Shareholders
Nature of
shareholder
Proportion
of shares
held
Total of shares
held
Numbers of
non-circulating
shares held
Number of share
pledged/
frozen
Sichuan Changhong Electric Co.,
Ltd.
State shares 18.01 74,491,952 70,214,797 10,174,282
Hefei Xingtai Holding Group
Co., Ltd
State shares 6.38 26,396,258 26,396,258
Changhong (Hong Kong) Trade
Co., Ltd.
Foreign legal
person
3.60 14,876,204
Hefei Meiling (Group) Holdings
Co., Ltd.
State shares 1.53 6,313,468 6,313,468 6,313,468
CAO SHENGHUN
Foreign
natural person
1.41 5,815,247
Long Qinfang
Foreign
natural person
0.51 2,098,066
SHANGHAI WORLD TRADE
AUTOMOBILE CO. , LTD.
Domestic
legal person
0.43 1,700,000
CHEN YI QING
Foreign
natural person
0.39 1,608,859
Anhui Agricultural Bank Credit
Trust, Hefei Office
Domestic
legal person
0.37 1,536,975
China Cinda Asset Management
Corporation
Domestic
legal person
0.37 1,536,975
Particulars about the shares held by the top ten unrestricted shareholders
Full Name of shareholder Amount of unrestricted shares held Type of shares
Changhong (Hong Kong) Trade
Co., Ltd.
14,876,204 Domestically listed foreign share
CAO SHENGHUN 5,815,247 Domestically listed foreign share
Sichuan Changhong Electric Co.,
Ltd
4,277,155 RMB common share
Long Qinfang 2,098,066 Domestically listed foreign share
SHANGHAI WORLD TRADE
AUTOMOBILE CO. , LTD.
1,700,000 RMB common share
CHEN YI QING 1,608,859 Domestically listed foreign share9
Wo Liangliang 1,450,000 RMB common share
DBS VICKERS LTD A/C
CLIENTS
1,341,000 Domestically listed foreign share
LI XOXONG 1,256,500 Domestically listed foreign share
Anhui Technology Imp. & Exp.
Co., Ltd.
1,105,000 RMB common share
Explanation on associated
relationship or accordant action
among the aforesaid shareholders
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the
controlling subsidiary of Sichuan Changhong Electric Co., Ltd.; there existed no
associated relationship or belong to the concerted actors as specified in the
Measures for the Administration of Information Disclosure of Shareholder Equity
Changes of Listed Companies among Sichuan Changhong Electric Co., Ltd.,
Changhong (Hong Kong) Trade Co., Ltd. and other top 8 shareholders; and top
ten shareholders with unconditional subscription; as the Company has not known
whether there exists any business relationship among the above shareholders with
unconditional subscription or they belong to the concerted actors as specified in
the Measures for the Administration of Information Disclosure of Shareholder
Equity Changes of Listed Companies.
3. Statement on changes of restricted shares
Unit: Share
Name of shareholders
Restricted
shares in
year-begin
Restricted
shares
released
this year
Restricted
shares
increased
this year
Restricted
shares in
year-end
Reason for
condition
Date of
releasing
Sichuan Changhong Electric Co.,
Ltd. 70,214,797 0 0 70,214,797
Commitment
for Share
Merger
Reform
20090827
Hefei Xingtai Holding Group Co.,
Ltd
26,396,258 0 0 26,396,258
Commitment
for Share
Merger
Reform
20090827
Hefei Meiling (Group) Holdings
Co., Ltd.
6,313,468 0 0 6,313,468
Commitment
for Share
Merger
Reform
20090827
4. Brief introduction on controlling shareholder and actual controller
Sichuan Changhong Electric Co., Ltd.: Legal representative: Mr. Zhao Yong; registered
capital: RMB 1,898,210,000; registered address: No. 35, Mianxing (E) Road, Hi-tech Zone,
Mianyang, Sichuan; business scope: manufactures, sales and maintenance of household
appliance, electric products and spare parts, comminications equipments, computer and other
electrical equioments, specialized equipments of electronic and electrician, electrical
machinery and equipment, series products of batteries, electric medicine products, electrical
equipments, digital monitoring products, metal products, apparatus and instruments, culture10
and office machines, culture and education and sports products, furniture, kitchen cabinet and
gas appliance; house and equipment rental, packing products and technical services; road
transportaion, storage and discharging convey; e-commerce; R&D, sales and services of
software; consultance and services of enterprise management; hi-tech project investment and
other state-permitted business; development and operation of property; callback and disposal
of obsolete appliance and electric products.
Ended June 30, 2009, Sichuan Changhong Electric Group Co., Ltd holds 5,520,195,340,000
shares of Sichuan Changhong Electric Co., Ltd, which accounts for 29.08 percent in total
shares of Sichuan Changhong.
The actual controller of Sichuan Changhong Electric Group Co., Ltd is State-owned Assets
Supervision & Administration Commission of Mianyang Municipality. Equity structure chart
of the Company is as follows:
Section III. Directors, Supervisors, and Senior Executives
I. In the report period, the changes in shares held by directors, supervisors, and senior
executives of the Company.
In the report period, the shares held by directors, supervisors, and senior executives of the
Company haven’t any changes. In the report period, Vice-chairman of the Company Mr. Wang
Jiazhang totally held 77,977 shares of the Company.
II. New engagement and dismissal of directors, supervisors and senior executives of the
Company:
100%
State-owned Assets Supervision & Administration Commission of Mianyang Municipality
Sichuan Changhong Electric Group Co., Ltd.
Sichuan Changhong Electric Co., Ltd.
29.08%
Hefei Meiling Co., Ltd.
18.01%
Changhong (Hong Kong) Trade Co., Ltd.
100%
3.60%11
In accordance with the demands of operation development of the Company, the 15th meeting
of the 6th board of Hefei Meiling Co., Ltd. engaged Mr. Wang Yong as the President of the
Company; with the nomination of president, Mr. Liu Hongwei was engaged as the Standing
Vice President of the Company, Mr. Yu Wanchun, Mr. Li Daijiang and Mr. Wang Yingmin as
the Vice President of the Company.
In accordance with the demands of operation development of the Company, the 16th meeting
of the 6th board of Hefei Meiling Co., Ltd. engaged Ms. Li Xia as the Secretary of the Board.
Section IV. Discussion and Analysis on the Management
I. Analysis on operational results and financial status of the Company
1. Analysis on operation achievement:
In the first half year, the Company held firmly the operation guideline “Quality as Primary;
Rapid Response; Team Work; Thrift”; responded to the serious test of economic crisis; made
initiative action; successfully received good operation achievement and finished the
prearranged target. From Jan. to June, 2009, with the joint endeavors of whole staff of the
Company, the Company tackled adversities and overcame the difficulties and turn difficulties
into opportunities, our output steadily promoted; the sales income in the first half of year 2009
amounted to RMB 2.562 billion, and the net profit attributable to owners’ equity of parent
company amounted to RMB 30,381,000.
Face with the disadvantage influences from the international and domestic ecomonic trends,
the Company adopted technical innovation, adjustment of product structrure, promoted
management level and strengthened the cost control; the profit-gaining ability of the products
increased about 29.35% compared with that in the same period of last year. In terms of
domestic sale: grasping the opportunity of Appliance-sent-to-Countryside policy, the
Company implemented flat channel and service marketing strategy, and presented the promise
that “10 Years Maintenance for Appliance Products Sent to Countryside” in advanced position.
Through implementation of flat channel, regional distributors and sales networks had certain
increases. Successive new records were continuously made in May to June for domestic sales.
Meanwhile, various expenses were in good control. In the first half year, the Company took
the 2nd place in market share in level I and II market, and so did its record-in rate for
appliance going to countryside. The Company received success in domestic marketing
strategy. But influenced by the global economic crisis, overseas sales had certain slides.
Main operation index:
Unit: RMB
Item Jan. to June, 2009 Jan. to June, 2008 Increase or decrease12
of variance scope
（%）
Operation income 2,562,440,855.44 2,493,197,467.74 2.78%
Operation cost 1,839,116,139.42 1,933,983,724.26 -4.91%
Gross profit from sales 723,324,716.02 559,213,743.48 29.35%
Sales expense 578,917,762.91 439,874,051.42 31.61%
Administration expense 81,170,269.07 63,895,456.51 27.04%
Financial expense 12,808,304.94 26,701,505.27 -52.03%
Net profit attributable to
owners of parent company 30,381,054.02 14,184,663.42 114.18%
Analysis on reason for change:
(1) Growth in operation income year-on-year mainly came from: benefited from state
Appliance-sent-to-Countryside policy and the promotion of management ability of the
Company; strengthening in market construction and product promotion; and adjustment of
products structure in the report period.
(2) Growth in sales expense year-on-year mainly came from that: the Company fought for the
economic crisis, laid out the work of Appliance-sent-to-Countryside; further detailed the
market, developed and sank the channel and network; strengthen the marketing; which all
resuted in the increases in maket supporting expense, advertisement expense, labor force
expense, expense on oil consumption of vehicles, logistic storage expense, etc. and calculated
the expense on“10 Years Maintenance for Appliance Products Sent to Countryside” in
advance.
(3) Growth in net profit year-on-year mainly came from that: the operation performance
continuously increased, and sold part financial assets available for sale and obtained
investment income after tax amounted to RMB 7,132,700 in the report period.
2. Analysis on financial status
Unit: RMB
Item Jun 30th of 2009 Dec 31st of 2008 Variance scope
（%）
Notes receivable 880,425,109.69
176,893,815.75 397.71
Account receivable 367,211,998.44
282,278,322.28 30.09
Account paid in advance 86,663,986.85
134,938,234.66 -35.78
Inventory 389,091,875.28
538,043,077.21 -27.68
Account payable 955,913,550.53
636,288,350.79 50.23
Account received in advance 307,908,863.68
319,411,065.64 -3.60
Tax payable 66,013,139.30
13,616,162.10 384.81
Analysis on reason for change:13
(1)Notes receivable increased mainly due to that the Company received more commercial bill
because the domestic sales scale expanded.
(2)Balance of account receivable at period-end increased than that at year-begin, mainly due
to that the Company received more accounts receivable which had not been matured since it
expanded sales scale in busy season.
(3)Inventory at period-end decreased mainly due to that: the Company strengthened link
between production and sales, raised cashing rate of order and optimized inventory.
(4)Balance of account payable at period-end increased than that at year-begin, mainly due to
that the Company had more accounts payable for purchase which had not reached at
settlement time since it expanded production scale in busy season.
(5)Tax payable increased mainly due to the increases in the value added tax which had been
declared in June but has not been handed over yet.
II. Operation in the report period
1. Main business scope and operation status
Being a home appliance manufacturer, the Company mainly engages in research &
development, manufacture, sales and service concerning various home refrigerators, freezer,
low temperature medical-used refrigerator and relevant fittings; sales and service of other
appliance products.
(1)Operation income classified according to industry and products
Unit: RMB
Amount occurred in this period Amount occurred in last year
Area
Income Cost
Gross
profit
ratio
Income Cost
Gross
profit
ratio
I. Main business
Domestic
sales
2,227,000,925.21 1,533,577,045.09 31.14% 1,966,988,902.37 1,422,117,192.99 27.70%
Export 203,448,203.62 182,287,605.00 10.40% 261,748,452.75 261,418,712.64 0.13%
II. Other business
Domestic
sales
131,991,726.61 123,251,489.33 6.62% 264,460,112.62 250,447,818.63 5.30%
Total 2,562,440,855.44 1,839,116,139.42 28.23% 2,493,197,467.74 1,933,983,724.26 22.43%
2. In the report period, there is no material change happened to profit constitution, main
business and its structure, and profit-making ability of main business of the Company.
3. In the report period, there is no other business activity which brings significant influence
upon profit.14
4. Investment income from single joint-stock company brings influence on the Company’s net
profit over 10% in the report period.
In the report period, the Company sold part financial assets available for sale and received
investment income after tax amounted to RMB 7,132,700 and obtained the dividend bonus of
the shares amounted to RMB 1,597,100.
5. Problems and difficulties in operation:
The main problem in front of the Company is that the demands in overseas market decline,
and the business for products export has difficulities because of the influences of economic
crisis.
III. Investment
1. The Company has not raised proceeds in the report period, nor proceeds raised in previous
period but last to use in this report period.
2. There is no significant investment with non-raised proceeds in the report period.
Section V. Significant Events
I. Corporate governance
The Company has established perfect corporate governance structure, and constantly
optimized governance structure to ensure the constant improvement of operation level of the
Company. In the report period, according to the regulations of the Company Laws, Securities
Laws and Decision about Amending Some Regulations on Cash Division of Listed Company
(CSRCL [2008] No.57) issued by CSRC and combined with the actual conditions and
business development demand of the Company, the Company revised relevant items in
Articles of Association. The actual conditions of the Company and the requirements of
relevant documents issued by CSRC had no material difference.
In the report period, acceding to Notice on Individual Senior Executives Illegally Buying and
Selling Stocks in Listed Company Including Conch Cement Co., Ltd. issued by Anhui
Supervision Bureau, CSRC (WZJHZ [2009] No.82), the Company made relevant study and
self-inspection plan and implemented one by one, not finding anyone of the directors,
supervisors and senior executives illegally buying and selling stocks of the Company. The
Company would continue to strengthen their training and study of relevant laws, regulations
and systems, and improve their law awareness and consciousness to eliminate the case of
illegally buying and selling the Company’s stocks and set up a good image in the market.
II. In the report period, the Company had no material lawsuits or arbitrations.
III. The material purchase or sale of assets or assets reorganization in the report period15
The Company holds some financial assets available for sale of China Pacific Insurance
(Group) Co., Ltd. (Stock Code: 601601, Short Form of Stock: China Pacific Insurance) and
Anhui USTC Iflytek Co., Ltd. (Stock Code: 002230, Short Form of Stock Name: USTC
Iflytek), including the original holding amount of UST iflytek was 6.6 million shares (6.16%
of the total shares of UST iflytek), and the original investment cost was RMB 18.96 million.
On May 14, 2009, UST iflytek implemented profit distribution and capital transfer into share
capital plan, after that, the Company’s holding amount of UST iflytek was 9,582,750 shares
(5.96% of the total shares of UST iflytek); the original holding amount of China Pacific
Insurance was 1 million shares (0.001299% of the total shares of China Pacific Insurance),
with the orginal investment cost of RMB 0.58 million. The shares of UST iflytek holding by
the Company have been traded in the market on May 12, 2009, and holding shares of China
Pacific Insurance have been traded in the market on Dec. 26, 2008.
Combined with the present fund conditions and demand, in order to activate the financial
assets available for sale as soon as possible, centralized core sources to develop main business,
the board of the Company authorized the management team to gradually sell all the shares of
China Pacific Insurance and USTC Iflytek held by the Company in secondary market
according to financial market environment (including share price trend, stock market tendency,
national monetory and financial policies) and relevant regulations.
From opening on May 12, 2009 to closing on May 21, 2009, the Company sold 211,500
shares of USTC Iflytek by bidding trade system of Shenzhen Stock Exchange, with the sold
average price of RMB 35.58 per share; from opening on May 22, 2009 to closing on July 28,
2009, the Company sold 1,577,700 shares of USTC Iflytek by bidding trade system of
Shenzhen Stock Exchange, with the sold average price of RMB 24.50 per share. The
accumulative sold amount accounted for 1.18% in total shares of USTC Iflytek and it’s
expected the net profit of investment before tax was RMB 42,467,800 after deducting cost
and relevant trade tax, which accounted for 165.38% net profit of the Company based on
latest audit. After the decrease of holding, the Company still holds 8,005,050 shares of USTC
Iflytek accounting for 4.98% in total shares of USTC Iflytek and all the shares belongs to
tradable shares with unrestricted conditions.
From opening on Jul. 1, 2009 to closing on Jul. 3, 2009, the Company accumulated sold 1
million shares of China Pacific Insurance by bidding trade system of Shenzhen Stock
Exchange, with the sold average price of RMB 24.15, and it’s expected the net profit of
investment before tax was RMB 23,528,500 after deducting cost and relevant transfer tax,
which accounted for 91.63% net profit of the Company based on latest audit. After this
decrease of holding, the Company did not hold shares of China Pacific Insurance any longer.
IV. Material related transactions in the report period
1. Purchase of goods
(1) Policy for setting price
The Company’s purchase of materials from related enterprises was all conducted in the form
of public bidding according to market prices.
(2) Statement on the purchase of goods from related parties
Unit: RMB’0000
Names of enterprises Jan.-Jun. 2009 Jan.-Jun. 200816
Amount
Proportion in
purchase of
goods in the
period (%)
Amount
Proportion in
purchase of
goods in the
period (%)
Sichuan Changhong Electric
Appliance Co., Ltd
109.54 0.07 1,946.82 0.89
Sichuan Changhong Mould & Plastic
Technology Co., Ltd.
2,196.76 1.00 3,638.87 1.66
Changhong Jijia Precise Machine
Co., Ltd.
968.02 0.59 25.90 0.01
Sichuan Changhong Minsheng
Logistics Co., Ltd.
918.76 0.56 300.69 0.14
Huayi Compressor Co., Ltd. 11,592.00 7.09 15,445.80 7.04
Hefei Meiling Packing Corporation 1,620.66 0.99 5,049.64 2.30
Total 17,405.74 26,407.72
2. Sale of goods
(1) Policy for setting price
The Company’s sales to related parties were mainly conducted publicly according to the
market prices of the goods of the same variety.
(2) Particular sheet of sales goods to related parties
Unit: RMB’0000
Names of enterprises Jan.-Jun. 2009 Jan.-Jun. 2008
Amount
Proportion in
purchase of
goods in the
period (%)
Amount
Proportion in
purchase of
goods in the
period (%)
Hefei Meiling Packing Corporation - - 10.87 0.00
Sichuan Changhong Electric
Appliance Co., Ltd
- - 8.12 0.00
Sichuan Changhong Mould &
Plastic Technology Co., Ltd.
1,418.18 0.56 3,112.66 1.26
Changhong Jijia Precise Machine
Co., Ltd.
990.88 0.39 2.72 0.00
Lejiayi Chain Management Co., Ltd. - - 218.14 0.09
Changhong (Hong Kong) Trade Co.,
Ltd.
- - 134.77 0.05
Total 2,409.06 3,487.28
3. Creditor’s right and debts current or guarantees between the Company and related parties in
the report period:
(1) Creditor’s right and debts between the Company and related parties
Unit: RMB’000017
Fund provided by the listed
companies to related parties
Fund provided by related
parties to the listed companies
Name of related parties
Relation with the listed
company Occurred
amount
Balance
Occurred
amount
Balance
Sichuan Changhong
Electric Co., Ltd
Controlling shareholder
of the Company
-- -- -1199.41 15,450.10
Sichuan Changhong Mould
& Plastic Technology Co.,
Ltd.
Controlling subsidiary of
Sichuan Changhong
-- -- 0.83 5.00
Sichuan Changhong
Minsheng Logistics Co.,
Ltd.
Controlling subsidiary of
Sichuan Changhong
-- -- -457.06 50.00
Hefei Meiling Packing
Corporation
-6.88 15.5
Total -- -- 15,520.60
Of which: Occurred amount of fund provided by the listed company to controlling
shareholder and its subsidiaries in the report period was RMB 0.00, balance RMB 0.00.
(2) Guarantees between the Company and related parties in the report period
① Ended Jun. 30, 2009, guarantee provided by Sichuan Changhong Electric Group Co., Ltd
for loans of the Company totaled to RMB 300 million in period-end.
② External guarantees, guarantees for subsidiaries and irregular guarantees of the Company
Unit: RMB’0000
External guarantees (excluding guarantees for controlling subsidiaries)
Name of
warrantee
Date of happening (date
of agreement signing)
Guarantee
amount
Guarantee
type
Guarantee
term
Accomplis
hed or not
For related parties or not
(yes or no)
---- ---- ----- ---- ----- ---- ------
Total guarantee amount happened in the
report period
0.00
Total guarantee balance of the report
period (A)
0.00
Guarantees for controlling subsidiaries
Total guarantee amount for controlling
subsidiaries of the report period
0.00
Total guarantee balance for controlling
subsidiaries at the end of the report period
(B)
2,300.00
Total guarantees (including guarantees for controlling subsidiaries)
Total guarantees (A+B) 2,300.00
Proportion of guarantees to net assets of
the Company
2.01%
Including:18
Guarantees for shareholders, actual
controller and related parties(C)
0.00
Guarantee amount provided directly or
indirectly for those with an asset-liability
ratio of over 70% (D)
0.00
The part of the total guarantee amount
exceeding 50% of net assets（E）
0.00
Total of the aforementioned three
guarantees*（C+D+E）
0.00
Guarantees for shareholders, actual
controller and related parties(C)
None
The aforementioned warrantees are the Company’s controlling subsidiaries. These companies
run normally, bringing no negative influence on the Company’s financial status. Details are as
followings:
Unit: RMB’0000
Guarantees provided by the Company to controlling subsidiaries
Name of warrantees
Amount of
guarantee
Term of guarantee
Accomplished or
not
Zhongke Meiling Cryogenic
Technology Co., Ltd.
2,300 2008.10.22-2009.10.22 Not
Total balance at report period-end for controlling
subsidiaries
2,300
Proportion of guarantees to net assets of the
Company
2.01%
V. Material contracts and their implementations in the report period
1. In the report period, the Company has no significant custody, contract or lease of assets of
other companies, nor vice visa.
2. The Company has no material guarantee in the report period or that happening before the
period but extending to the period.
3. The Company has not entrusted others with cash management or financial management in
the report period.
VI. In the report period, neither the Company nor shareholders holding more than 5% shares
have made any commitments that would likely exert great influence on the operation
achievements and financial status, nor had there been any such commitment made in previous
periods and lasted to the report period.
VII. Particulars about occupation of funds by controlling shareholder or its subsidiaries, and
independent directors’ explanations on the Company’s accumulated and current external
guarantees and the guarantees violating rules19
1. The first largest shareholder, actual controller and the subsidiaries have not occupied fund
of the Company.
2. According to the requirements of Notification on Standardizing the Capital Current
between Listed Companies and the Related Parties and Several Problems about the External
Guarantee of Listed Companies (ZJF [2003] No.56) promulgated by CSRC and State-owned
Assets Supervision and Administration Commission of the State Council, there was no
guarantee provided by the Company for related parties ended the report period or happening
in the previous periods but lasting into the report period.
3. Special explanation and independent opinions on the Company’s accumulated external
guarantees and external guarantees of the current period presented by independent directors
In accordance with Guidelines for Independent Director of Listed Company Director of Listed
Company, Code of Corporate Governance for Listed Companies in China, Strengthening the
Protection of the Rights and Interests of Public Shareholders Several Provisions, Notice
Concerning Some Issues on Regulating the Funds between Listed Companies and Associated
Parties and Listed Companies’ Provision of Guaranty to Other Parties and the Articles of
Association, based on independent judgment, we conducted serious inspections in the
principle of seeking truth from facts on the fund occupied by the controlling shareholder and
other related parties and external guarantees of the Company, and the independent opinions
are as follows: through inspections, as for Jan. 1-June 30, 2009, Hefei Meiling Co., Ltd. did
not have such behaviors that fund of the Company occupied non-operationally by the
controlling shareholders and related parties; as for Jan. 1-June 30, 2009, the external
guarantee occurred in Hefei Meiling Co., Ltd. all implemented the necessary approval
procedure and obligation of information disclosure, and conformed to relevant regulations of
laws and code; the Company did not provide guarantees for controlling shareholder and other
related parties which held below 50% shares of the Company, any non legal person units or
individuals, the controlling shareholder did not force the Company to provide guarantees for
others. The Company could treat the risks occurred by external guarantees prudently which
effectively protected the interests of vast shareholders and reduced the operation risks of the
enterprise.
Independent Directors: Wang Xingzhong,
Song Baozeng
Liu Youpeng
VIII. Particulars about action of the use right of two pieces of state-owned land in Wuhu Road
In 2006, the Company signed Agreement of Taking back the Use Right of State-owned Land
with Land Reserve Center, and Land Reserve Center took back the use right of two pieces of
state-owned land of the Company located in Wuhu Road in Hefei City with payment.
On Jun. 11, 2009, Hefei Land & Resources Bureau and Hefei Tender & Bidding Center made
a public action in Hefei Land Deal Market for the use right of 166.17 acre land located in the
cross of Baohe District, Wuhu Road and Ma’anshan Road, including the aforementioned land
owned by the Company before transferred an area of 153 acre. According to the results of the
action declared in spot, the deal price of the land was RMB 6,150,000 per acre.20
According to Agreement of Taking back the Use Right of State-owned Land, the Company
and Land Reserve Center agreed that Land Reserve Center took back totally 119,400 square
meters land located in No.33 and No. 48, Wuhu Road which was owned by the Company
before, and within six months after transaction, Hefei Financial Department paid
compensation (including dismantling, removing, allocating, ect.) for taking back the land to
the Company, which would be calculated as 65% of the total amount deducting deed tax and
the bank interests (including estimation fee) of loan that Hefei Land Reserve Center mortgage
the land. After transferring the land, if the government income was lower than RMB
198,040,000 after divided as aforesaid proportion, the government income would calculated
as 198,040,000. The Agreement promises that the transferred area of the land is calculated as
the final layout and practice mapping of Municipal Planning Bureau, and the Company
provides service of levying municipal and public welfare land such as roads, greenbelts and
school land. Besides, the Agreement also promises that Land Reserve Center should actively
promote this land and try to well activate the land assets as soon as possible, and if the final
deal price is over RMB 0.6 billion and unit price is respectively over RMB 4 million/acre,
RMB 5 million/acre and RMB 6 million/acre, Land Reserve Center would respectively
withdraw 10%, 30% and 50% of the relevant excessed part. After withdrawing, then calculate
the compensation and government income as aforesaid promises.
According to the Company’s simple calculation, relevant removing losses and expenses of
land use right of the original factory, fixed assets and projects in process damaged in the
process of removing, relevant rebuilding and allocation expenses in other place, and relevant
tax that may involved in, were expected as totally about RMB 0.45 billion. At present, the
Company is actively communicating with relevant department including Land Reserve Center
about compensation amount of the land, and the Company will timely disclosed the
development of implementation of the agreement after deciding relevant issues of taking back
the land.
IX. Index of the public notices in the report period
Date of
the notice
Contents of the notice
Newspapers for information
disclosure
20090123
Notice on Shareholders’ Agreement on Transferring Shares
and Completing Transfer Registeration
Securities Times,
Hong Kong Wen Wei Po
20090225 Annual Report 2008 and its Summary
Securities Times,
Hong Kong Wen Wei Po
20090414
Notice on Providing Credit Guarantee for Holding
Subsidiary – Zhongke Meiling Cryogenic Technology Co.,
Ltd.
Securities Times,
Hong Kong Wen Wei Po
20090414 Notice on Holding Shareholders’ General Meeting 2008
Securities Times,
Hong Kong Wen Wei Po
20090420 The First Quarterly Report 2009
Securities Times,
Hong Kong Wen Wei Po
20090505
Resolution Notice on the 15th Meeting of the Board of
Directors
Securities Times,
Hong Kong Wen Wei Po21
20090507 Resolution Notice on Shareholders’ General Meeting 2008
Securities Times,
Hong Kong Wen Wei Po
20090522
Resolution Notice on the 16th Meeting of the Board of
Directors
Securities Times,
Hong Kong Wen Wei Po
20090606
Resolution Notice on the 17th Meeting of the Board of
Directors
Securities Times,
Hong Kong Wen Wei Po
20090612 Suggestive Notice on Land Action
Securities Times,
Hong Kong Wen Wei Po
The aforesaid information disclosure was published in the internet website:
http://www.cninfo.com.cn designated by CSRC at the same time. The investors are welcome
to inquire by inputting the stock code of the Company in “Shares Information”.
Section VI. Financial Report (Un-audited)
Consolidation and Balance Sheet of Parent Company
Prepared by Hefei Meiling Co., Ltd. June 30, 2009 Unit: RMB
Note Merger Parent Company
Assets
Merger
Parent
Company
Amount in
year-end
Amount in
year-begin
Amount in
year-end
Amount in
year-begin
Current assets:
Monetary funds 1 375,654,701.24 338,230,921.44 330,281,755.17 306,127,639.14
Settlement
provisions
- - - -
Capital lent - - - -22
Transaction finance
asset
- - - -
Notes receivable 2 880,425,109.69 176,893,815.75 880,385,109.69 176,893,815.75
Accounts receivable 3 1 367,211,998.44 282,278,322.28 363,973,862.96 283,645,063.75
Accounts paid in
advance
4 86,663,986.85 134,938,234.66 60,608,719.45 87,116,862.99
Insurance receivable - - - -
Reinsurance
receivables
- - - -
Contract reserve of
reinsurance receivable
- - - -
Interest receivable - - - -
Dividend receivable - - - -
Other receivables 5 2 23,143,775.28 40,200,759.80 21,277,298.27 39,517,439.05
Purchase restituted
finance asset
- - -
Inventories 6 389,091,875.28 538,043,077.21 403,807,948.13 522,957,717.07
Non-current asset
due within one year
- - -
Other current assets - - -
Total current assets 2,122,191,446.78 1,510,585,131.14 2,060,334,693.67 1,416,258,537.75
Non-current assets:
Granted loans and
advances
- - - -
Finance asset
available for sales
7 228,702,514.98 166,220,000.00 228,702,514.98 166,220,000.00
Held-to-maturity
securities
- - - -
Long-term account
receivable
- - - -
Long-term equity
investment
8 3 32,205,741.78 32,058,769.12 184,346,414.65 139,199,441.99
Investment property 9 13,165,296.15 4,082,185.28 13,165,296.15 4,082,185.28
Fixed assets: 10 645,174,145.66 667,231,824.31 444,526,321.20 482,330,683.29
Construction in
progress
11 60,396,185.71 60,139,261.97 60,342,766.91 60,139,261.97
Engineering material - - - -
Disposal of fixed
asset
12 359,084,903.91 358,013,123.80 359,084,903.91 358,013,123.80
Productive
biological asset
- - - -
Oil and gas asset - - - -
Intangible assets 13 565,632,592.73 579,003,366.14 562,257,592.73 574,503,366.14
Expense on - - - -23
Research and
Development
Goodwill - - - -
Long-term expenses
to be apportioned
- - - -
Deferred income tax
asset
14 15,330,709.75 12,980,747.10 14,851,042.07 12,501,079.42
Other non-current
asset
- - - -
Total non-current asset 1,919,692,090.67 1,879,729,277.72 1,867,276,852.60 1,796,989,141.89
Total assets 4,041,883,537.45 3,390,314,408.86 3,927,611,546.27 3,213,247,679.64
Legal representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Wang Shaozhuo
Consolidation and Balance Sheet of Parent Company (Con.)
Note Merger Parent Company
Liabilities and shareholder’s
equity Merger
Parent
Company
Amount in
year-end
Amount in
year-begin
Amount in
year-end
Amount in
year-begin
Current liabilities:
Short-term loans 17 408,795,307.70 336,427,193.11 388,795,307.70 306,427,193.11
Loan from central bank - - - -
Absorbing deposit and
interbank deposit
- - - -
Capital borrowed - - - -
Transaction financial
liabilities
- - - -
Notes payable 18 467,867,153.15 584,560,526.09 447,352,144.55 582,245,703.75
Accounts payable 19 955,913,550.53 636,288,350.79 993,150,322.80 657,248,796.03
Accounts received in
advance
20 307,908,863.68 319,411,065.64 361,305,472.31 318,498,724.58
Selling financial asset
of repurchase
- - - -
Commission charge and
commission payable
- - - -
Wage payable 21 48,853,009.96 27,873,906.64 47,571,487.58 26,863,214.71
Taxes payable 22 66,013,139.30 13,616,162.10 69,431,017.65 15,213,301.43
Interest payable - - - -
Dividend payable 23 1,387,950.42 1,387,950.42 1,387,950.42 1,387,950.42
Other accounts payable 24 501,520,934.92 350,937,168.31 340,190,686.09 197,903,731.23
Reinsurance payables - - - -
Insurance contract
reserve
- - - -
Security trading of
agency
- - - -24
Security sales of agency - - - -
Long-term liabilities
due within 1 year
- - - -
Other current liabilities - - - -
Total current liabilities 2,758,259,909.66 2,270,502,323.10 2,649,184,389.10 2,105,788,615.26
Non-current liabilities:
Long-term loans 25 19,198,200.00 19,198,200.00 16,198,200.00 16,198,200.00
Bonds payable - - - -
Long-term account
payable
- - - -
Special accounts
payable
- - - -
Projected liabilities 26 52,660,683.86 1,650,759.86 52,660,683.86 1,650,759.86
Deferred income tax
liabilities
27 31,487,002.51 22,002,000.00 31,487,002.51 22,002,000.00
Other non-current
liabilities
28 20,172,100.00 - 20,172,100.00 -
Total non-current liabilities 123,517,986.37 42,850,959.86 120,517,986.37 39,850,959.86
Total liabilities 2,881,777,896.03 2,313,353,282.96 2,769,702,375.47 2,145,639,575.12
Owner’s equity (or
shareholders’ equity):
Share capital 29 413,642,949.00 413,642,949.00 413,642,949.00 413,642,949.00
Capital public reserve 30 754,916,426.34 701,168,078.72 754,917,099.21 701,168,751.59
Less: Inventory shares - - - -
Surplus public reserve 31 284,889,548.51 284,889,548.51 284,889,548.51 284,889,548.51
Provision of general
risk
- - -
Retained profit 32 -309,088,482.62 -339,469,536.64 -295,540,425.92 -332,093,144.58
Balance difference of
foreign currency translation
- - -
Total owner’s equity
attributable to parent
company
1,144,360,441.23 1,060,231,039.59 1,157,909,170.80 1,067,608,104.52
Minority interests 33 15,745,200.19 16,730,086.31 - -
Total owner’s equity 1,160,105,641.42 1,076,961,125.90 1,157,909,170.80 1,067,608,104.52
Total liabilities and owner’s
equity
4,041,883,537.45 3,390,314,408.86 3,927,611,546.27 3,213,247,679.64
Legal Representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Wang Shaozhuo
Consolidation and Profit Statement of Parent Company
Prepared by Hefei Meiling Co., Ltd. Jan.-June, 2009 Unit: RMB
Items Note Merger Parent Company25
Merger
Parent
Company
Balance in this
year
Balance in last
year
Balance in this
year
Balance in last
year
I. Total operating income 2,562,440,855.44 2,493,197,467.74 2,608,376,576.23 2,568,136,449.92
Including: Operating income 34 4 2,562,440,855.44 2,493,197,467.74 2,608,376,576.23 2,568,136,449.92
Interest income - -
Insurance gained - -
Commission charge and commission
income
- -
II. Total operating cost 2,544,496,725.67 2,484,045,159.82 2,582,876,349.58 2,559,012,614.57
Including: Operating cost 34 4 1,839,116,139.42 1,933,983,724.26 1,893,612,119.27 2,020,150,459.75
Interest expense - -
Commission charge and commission
expense
- -
Cash surrender value - -
Net amount of expense of
compensation
- -
Net amount of withdrawal of insurance
contract reserve
- -
Bonus expense of guarantee slip - -
Reinsurance expense - -
Operating tax and extras 35 18,519,524.79 6,850,231.36 18,383,600.66 6,370,086.82
Sales expenses 36 578,917,762.91 439,874,051.42 574,174,257.82 437,437,061.75
Administration expenses 37 81,170,269.07 63,895,456.51 70,794,104.32 56,192,605.21
Financial expenses 38 12,808,304.94 26,701,505.27 11,947,542.97 26,122,210.04
Losses of devaluation of asset 39 13,964,724.54 12,740,191.00 13,964,724.54 12,740,191.00
Add: Changing income of fair
value(Loss is listed with “-”)
- -
Investment income (Loss is listed
with “-”)
40 5 10,435,457.53 2,034,932.61 10,435,457.53 2,034,932.61
Including: Investment income on
affiliated company and joint venture
146,972.66 84,932.61 146,972.66 84,932.61
Exchange income (Loss is listed with
“-”)
- -
III. Operating profit (Loss is listed with
“-”)
28,379,587.30 11,187,240.53 35,935,684.18 11,158,767.96
Add: Non-operating income 41 5,249,453.72 1,718,131.45 4,736,812.19 1,714,486.45
Less: Non-operating expense 42 116,553.07 1,055,099.43 116,553.07 1,053,710.11
Including: Disposal loss of
non-current asset
98,147.45 98,147.45
IV. Total Profit (Loss is listed with “-”) 33,512,487.95 11,850,272.55 40,555,943.30 11,819,544.30
Less: Income tax 43 4,116,320.05 -2,359,640.04 4,003,224.64 -2,359,640.04
V. Net profit (Net loss is listed with “-”) 29,396,167.90 14,209,912.59 36,552,718.66 14,179,184.34
Net profit attributable to owner’s
equity of parent company
30,381,054.02 14,184,663.42 36,552,718.66 14,179,184.3426
Minority shareholders’ gains and
losses
-984,886.12 25,249.17 - -
VI. Earnings per share
i. Basic earnings per share 0.0734 0.0343 0.0884 0.0343
ii. Diluted earnings per share 0.0734 0.0343 0.0884 0.0343
VII. Other consolidated income 44 53,748,347.61 168,558,400.00 53,748,347.61 168,558,400.00
VIII. Total consolidated income 83,144,515.51 182,768,312.59 90,301,066.27 182,737,584.34
Total consolidated income attributable to
owners of parent company
84,129,401.63 182,743,063.42 90,301,066.27 182,737,584.34
Total consolidated income attributable to
minority shareholders
-984,886.12 25,249.17 - -
Legal Representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Wang Shaozhuo
Consolidation and Cash Flow of Parent Company
Prepared by Hefei Meiling Co., Ltd. Jan.-June, 2009 Unit: RMB
Note Merger Parent Company
Items
Merger
Parent
Company
Balance in this year Balance in last year Balance in this year Balance in last year
I. Cash flows arising
from operating
activities:
Cash received
from selling
commodities and
providing labor
services
1,151,497,769.45 1,223,393,073.06 1,121,847,318.39 1,228,926,917.69
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
- - - -27
Note Merger Parent Company
Items
Merger
Parent
Company
Balance in this year Balance in last year Balance in this year Balance in last year
Insured savings
and net increase of
investment
- - - -
Net increase of
disposal of
transaction financial
asset
- - - -
Cash received
from interest,
commission charge
and commission
- - - -
Net increase of
capital borrowed
- - - -
Net increase of
returned business
capital
- - - -
Write-back of
tax received
412,490.95 20,522,592.60 82,579.91 20,233,538.44
Other cash
received concerning
operating activities
53 36,274,148.72 15,588,701.40 32,744,084.56 15,572,573.00
Subtotal of
cash inflow arising
from operating
activities
1,188,184,409.12 1,259,504,367.06 1,154,673,982.86 1,264,733,029.13
Cash paid for
purchasing
commodities and
receiving labor
service
764,420,626.34 814,732,184.91 770,877,593.18 809,465,815.24
Net increase of
customer loans and
advances
- - - -
Net increase of
deposits in central
bank and interbank
- - - -
Cash paid for
original insurance
contract
compensation
- - - -
Cash paid for - - - -28
Note Merger Parent Company
Items
Merger
Parent
Company
Balance in this year Balance in last year Balance in this year Balance in last year
interest, commission
charge and
commission
Cash paid for
bonus of guarantee
slip
- - - -
Cash paid to/for
staff and workers
97,413,536.64 98,533,266.38 87,321,967.36 89,789,437.35
Taxes paid 127,563,049.84 34,997,360.35 124,219,453.85 27,166,596.53
Other cash paid
concerning operating
activities
54 211,183,517.76 201,734,796.29 205,844,913.11 194,399,610.79
Subtotal of cash
outflow arising from
operating activities
1,200,580,730.58 1,149,997,607.93 1,188,263,927.50 1,120,821,459.91
Net cash flows
arising from
operating activities
-12,396,321.46 109,506,759.13 -33,589,944.64 143,911,569.22
II. Cash flows arising
from investing
activities:
Cash received
from recovering
investment
- - - -
Cash received
from investment
income
1,897,125.00 1,850,000.00 1,897,125.00 1,850,000.00
Net cash
received from
disposal of fixed,
intangible and other
long-term assets
7,803,796.33 2,750.00 57,803,796.33 2,750.00
Net cash
received from
disposal of
subsidiaries and other
units
- - - -
Other cash
received concerning
investing activities
55 1,907,042.42 2,517,725.54 1,733,410.49 2,328,358.61
Subtotal of cash 11,607,963.75 4,370,475.54 61,434,331.82 4,181,108.6129
Note Merger Parent Company
Items
Merger
Parent
Company
Balance in this year Balance in last year Balance in this year Balance in last year
inflow from investing
activities
Cash paid for
purchasing fixed,
intangible and other
long-term assets
12,664,257.03 47,767,288.31 10,224,613.19 44,883,215.60
Cash paid for
investment
- 20,367,400.00 45,000,000.00 20,367,400.00
Net increase of
mortgaged loans
- - - -
Net cash
received from
subsidiaries and other
units
- - - -
Other cash paid
concerning investing
activities
56 - - - -
Subtotal of cash
outflow from
investing activities
12,664,257.03 68,134,688.31 55,224,613.19 65,250,615.60
Net cash flows
arising from investing
activities
-1,056,293.28 -63,764,212.77 6,209,718.63 -61,069,506.99
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
313,825,872.57 335,609,279.06 313,825,872.57 305,609,279.06
Cash received
from issuing bonds
- - - -
Other cash
received concerning
57 - - - -30
Note Merger Parent Company
Items
Merger
Parent
Company
Balance in this year Balance in last year Balance in this year Balance in last year
financing activities
Subtotal of cash
inflow from financing
activities
313,825,872.57 335,609,279.06 313,825,872.57 305,609,279.06
Cash paid for
settling debts
253,682,493.90 379,919,981.26 253,682,493.90 359,919,981.26
Cash paid for
dividend and profit
distributing or
interest paying
9,001,239.63 14,870,678.43 8,343,292.13 14,087,168.43
Including:
Dividend and profit
of minority
shareholder paid by
subsidiaries
- - - -
Other cash paid
concerning financing
activities
58 - - - -
Subtotal of cash
outflow from
financing activities
262,683,733.53 394,790,659.69 262,025,786.03 374,007,149.69
Net cash flows
arising from
financing activities
51,142,139.04 -59,181,380.63 51,800,086.54 -68,397,870.63
IV. Influence on cash
due to fluctuation in
exchange rate
-265,744.50 -2,099,432.93 -265,744.50 -2,099,432.93
V. Net increase of
cash and cash
equivalents
37,423,779.80 -15,538,267.20 24,154,116.03 12,344,758.67
Add: Balance of
cash and cash
equivalents at the
period -begin
338,230,921.44 404,131,911.83 306,127,639.14 354,939,066.12
VI. Balance of cash
and cash equivalents
at the period -end
60 375,654,701.24 388,593,644.63 330,281,755.17 367,283,824.79
Legal Representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Wang Shaozhuo31
Consolidated Statement on Changes of Owners’ Equity
Prepared by Hefei Meiling Co., Ltd. Jan.-June, 2009 Unit: RMB
Amount in this period
Owners’ equity attributable to the parent company
Items
N
ot
e Share capital
Capital
reserves
Less:
Treasury
Stock
Surplus
reserves
General risk
provision
Retained
profit
Oth
ers
Minority
interest
Total owners’
equity
I. Balance at the end of the last year
413,642,949.00
701,168,078.7
2
-
284,889,548.5
1
-
-339,469,536.
64
-
16,730,086.
31
1,076,961,125.
90
Add: Changes of accounting policy -
Error correction of the last period -
II. Balance at the beginning of this year
413,642,949.00
701,168,078.7
2
-
284,889,548.5
1
-
-339,469,536.
64
-
16,730,086.
31
1,076,961,125.
90
III. Increase/ Decrease in this year (Decrease is listed
with'"-")
- 53,748,347.62 - - - 30,381,054.02 - -984,886.12 83,144,515.52
(I) Net profit 30,381,054.02 -984,886.12 29,396,167.90
(II) Profits and losses calculating into owners' equity - 53,748,347.62 - - - - - - 53,748,347.62
1. Net changing amount of fair value of financial assets
available for sale
63,233,350.13 63,233,350.13
2. Effect of changes of other owners' equity of invested
units under equity method
-
3.Effect of income tax related to owners' equity -9,485,002.51 -9,485,002.51
4. Others 0.00 - -
Total of (I) and (II) - 53,748,347.62 - - - 30,381,054.02 - -984,886.12 83,144,515.52
(III) Owners' devoted and decreased capital - - - - - - - - -
1. Owners' devoted capital(Meiling’s house property)
2. Amount calculated into owners' equity paid in shares -
3. Others - -
(IV) Profit distribution - - - - - - - - -32
1. Withdrawal of surplus reserves - - -
2. Withdrawal of general risk provisions - - -
3.Distribution for owners (shareholders) -
4.Others - -
(V) Carrying forward internal owners' equity - - - - - - - - -
1.Capital reserves conversed to capital (share capital) -
2. Surplus reserves conversed to capital (share capital) -
3.Remedying loss with profit surplus -
4.Others -
IV. Balance at the end of this year
413,642,949.00
754,916,426.3
4
-
284,889,548.5
1
-
-309,088,482.
62
-
15,745,200.
19
1,160,105,641.
42
Legal Representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun Person in Charge of Accounting Institution: Wang Shaozhuo
Consolidated Statement on Changes of Owners’ Equity (Con.)
Amount in last year
Owners’ equity attributable to the parent company
Items Note
Share capital
Capital
reserves
Less:
Treasury
Stock
Surplus
reserves
General risk
provision
Retained profit Others
Minority
interest
Total owners’
equity
I. Balance at the end of the last year 413,642,949.00 596,857,478.72 - 284,889,548.51 - -365,148,528.22 - 18,732,898.38 948,974,346.39
Add: Changes of accounting policy -
Error correction of the last period -
II. Balance at the beginning of this
year
413,642,949.00 596,857,478.72 - 284,889,548.51 - -365,148,528.22 - 18,732,898.38 948,974,346.39
III. Increase/ Decrease in this year
(Decrease is listed with'"-")
- 104,310,600.00 - - - 25,678,991.58 - -2,002,812.07 127,986,779.51
(I) Net profit 25,678,991.58 -42,882.24 25,636,109.34
(II) Profits and losses calculating
into owners' equity
- 104,310,600.00 - - - - - 48,514.81 104,359,114.8133
1. Net changing amount of fair
value of financial assets available
for sale
146,680,000.00 146,680,000.00
2. Effect of changes of other
owners' equity of invested units
under equity method
-
3.Effect of income tax related to
owners' equity
-22,002,000.00 -22,002,000.00
4. Others -20,367,400.00 48,514.81 -20,318,885.19
Total of (I) and (II) - 104,310,600.00 - - - 25,678,991.58 - 5,632.57 129,995,224.15
(III) Owners' devoted and
decreased capital
- - - - - - - -2,008,444.64 -2,008,444.64
1. Owners' devoted capital -
2. Amount calculated into owners'
equity paid in shares
-
3. Others - -2,008,444.64 -2,008,444.64
(IV) Profit distribution - - - - - - - - -
1. Withdrawal of surplus reserves - - -
2. Withdrawal of general risk
provisions
- - -
3.Distribution for owners
(shareholders)
- -
4.Others - -
(V) Carrying forward internal
owners' equity
- - - - - - - - -
1.Capital reserves conversed to
capital (share capital)
-
2. Surplus reserves conversed to
capital (share capital)
-34
3.Remedying loss with profit
surplus
-
4.Others -
IV. Balance at the end of this year 413,642,949.00 701,168,078.72 - 284,889,548.51 - -339,469,536.64 - 16,730,086.31 1,076,961,125.90
Legal Representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun Person in Charge of Accounting Institution: Wang Shaozhuo
Statement on Changes of Owners’ Equity of Parent Company
Prepared by Hefei Meiling Co., Ltd. Jan.-June, 2009 Unit: RMB
Amount in this period
Owners’ equity attributable to the parent company
Items Note
Share capital
Capital
reserves
Less:
Treasury
Stock
Surplus
reserves
General risk
provision
Retained profit Others Total owners’
equity
I. Balance at the end of the last year 413,642,949.00 701,168,751.59 - 284,889,548.51 - -332,093,144.58 - 1,067,608,104.52
Add: Changes of accounting policy -
Error correction of the last period -
II. Balance at the beginning of this year 413,642,949.00 701,168,751.59 - 284,889,548.51 - -332,093,144.58 - 1,067,608,104.52
III. Increase/ Decrease in this year (Decrease is
listed with'"-")
- 53,748,347.62 - - - 36,552,718.66 - 90,301,066.28
(I) Net profit 36,552,718.66 36,552,718.66
(II) Profits and losses calculating into owners'
equity
- 53,748,347.62 - - - - - 53,748,347.62
1. Net changing amount of fair value of financial
assets available for sale
63,233,350.13 63,233,350.13
2. Effect of changes of other owners' equity of
invested units under equity method
-
3.Effect of income tax related to owners' equity -9,485,002.51 -9,485,002.51
4. Others - -35
Total of (I) and (II) - 53,748,347.62 - - - 36,552,718.66 - 90,301,066.28
(III) Owners' devoted and decreased capital - - - - - - - -
1. Owners' devoted capital -
2. Amount calculated into owners' equity paid in
shares
-
3. Others -
(IV) Profit distribution - - - - - - - -
1. Withdrawal of surplus reserves - -
2. Withdrawal of general risk provisions - -
3.Distribution for owners (shareholders) -
4.Others -
(V) Carrying forward internal owners' equity - - - - - - - -
1.Capital reserves conversed to capital (share
capital)
-
2. Surplus reserves conversed to capital (share
capital)
-
3.Remedying loss with profit surplus -
4.Others -
IV. Balance at the end of this year 413,642,949.00 754,917,099.21 - 284,889,548.51 - -295,540,425.92 - 1,157,909,170.80
Legal Representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun Person in Charge of Accounting Institution: Wang Shaozhuo36
Statement on Changes of Owners’ Equity of Parent Company (Con.)
Amount in last year
Owners’ equity attributable to the parent company
Items Note
Share capital
Capital
reserves
Less:
Treasury
Stock
Surplus
reserves
General risk
provision
Retained profit Others Total owners’
equity
I. Balance at the end of the last year 413,642,949.00 578,717,478.72 - 284,889,548.51 - -361,897,219.37 915,352,756.86
Add: Changes of accounting policy -
Error correction of the last period -
II. Balance at the beginning of this year 413,642,949.00 578,717,478.72 - 284,889,548.51 - -361,897,219.37 - 915,352,756.86
III. Increase/ Decrease in this year (Decrease is
listed with'"-")
- 122,451,272.87 - - - 29,804,074.79 - 152,255,347.66
(I) Net profit 29,804,074.79 29,804,074.79
(II) Profits and losses calculating into owners'
equity
- 122,451,272.87 - - - - - 122,451,272.87
1. Net changing amount of fair value of financial
assets available for sale
146,680,000.00 146,680,000.00
2. Effect of changes of other owners' equity of
invested units under equity method
-
3.Effect of income tax related to owners' equity -22,002,000.00 -22,002,000.00
4. Others -2,226,727.13 -2,226,727.13
Total of (I) and (II) - 122,451,272.87 - - - 29,804,074.79 - 152,255,347.66
(III) Owners' devoted and decreased capital - - - - - - - -
1. Owners' devoted capital -
2. Amount calculated into owners' equity paid in -37
shares
3. Others -
(IV) Profit distribution - - - - - - - -
1. Withdrawal of surplus reserves - -
2. Withdrawal of general risk provisions - -
3.Distribution for owners (shareholders) - -
4.Others - -
(V) Carrying forward internal owners' equity - - - - - - - -
1.Capital reserves conversed to capital (share
capital)
-
2. Surplus reserves conversed to capital (share
capital)
-
3.Remedying loss with profit surplus -
4.Others -
IV. Balance at the end of this year 413,642,949.00 701,168,751.59 - 284,889,548.51 - -332,093,144.58 - 1,067,608,104.52
Legal Representative: Zhao Yong Person in Charge of Accounting Works: Yu Wanchun Person in Charge of Accounting Institution: Wang Shaozhuo合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第38 页
Annotations of Financial Statements of
Hefei Meiling Co., Ltd
From Jan. 1 to June 30, 2009
I. Basic information of the company
Hefei Meiling Co., Ltd (hereinafter referred to as “this company”) is an incorporated company
established and reorganized by Hefei Meiling Refrigerator General Factory and approved on June
12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original Mechanism Reform
Committee of Anhui Province. On August 30th 1993, through Anhui Provincial Government
[Wanzhenmin (1993) No.166] and reexamination of China Securities Regulatory Commission, the
company made first public issue for 3,000 A shares and the company was listed on Oct. 18th, 1993
in Shenzhen Stock Exchange. On August 13th, 1996, the company was approved to issue 10,000 B
shares to investors abroad through [ZhengWeiFa(1996) No.26] issued by China Securities
Regulatory Commission. The company went public in Shenzhen Stock Exchange on August 28th,
1996.
On May 18, 2006, Hefei Meiling Group Holdings Company Limited (hereinafter abbreviated as
Meiling Group) signed “Ownership of Meiling Co., Ltd. (also called as Company) Transfer
Agreement” respectively with Sichuan Changhong Electric Co. Ltd (hereinafter abbreviated as
Sichuan Changhong) and Sichuan Changhong Electronic Group Co., Ltd (hereinafter abbreviated as
Changhong Group), Meiling Group transferred its holding 37,852,683 shares in 82,852,683
state-owned shares of the Company to Changhong Group, other 45,000,000 shares to Sichuan
Changhong. On March 27, 2007, State-owned Assets Supervision & Administration Commission of
the State Council approved such transfers with Document Guozi Chanquan No.253 in 2007 Reply
on Matters of Hefei Meiling Group Holdings Company Limited Transferring Partial State-owned
Ownership. On Aug 15, 2007, the above ownerships were transferred in Shenzhen Branch of China
Securities Journal Depository and Cleaning Corporation Limited. After these ownerships transferred,
Sichuan Changhong holds Meiling Group’s 45,000,000 shares (sponsor state shares), or 10.88% of
total shares of the Company, is the Company’s first largest shareholder; Meiling Group holds
Meiling Group’s 40,543,692 shares (sponsor state shares), or 9.80% of total shares of the Company,
is the Company’s second largest shareholder; Changhong Group holds Meiling Group’s 37,852,683
shares (sponsor state corporate shares), or 9.15% of total shares of the Company, is the Company’s
third largest shareholder. On May 18, 2006, Changhong Group issued Promise Letter, in which,
whereas Ownership of Meiling Co., Ltd. Transfer Agreement signed with Meiling Group and
37,852,683 state-owned shares of and held by Meiling Group transferred to Changhong Group,
Changhong Group promises that the Company’s these shares will be consigned to be managed by
Sichuan Changhong, and Sichuan Changhong will begin to exercise voting right of these shares
since such voting right obtained. The promise period is from the signature of Promise Letter to the
date any document in written re-issued by Changhong Group on such matter.
On July 31, 2007, State-owned Assets Supervision & Administration Commission of Anhui
Provincial Government replied with Document Wan Guozi Chanquan Han No.309 in 2007 Reply
on Related Matters of Share Merger Reformof Meiling Co., Ltd., agreed the Company’s ownership
split reform plan. After ownership split reform completed, the total shares are still 413,642,949,
including: 34,359,384 state shares held by Meiling Group, or 8.31% of total shares; 32,078,846
state corporate shares held by Changhong Group, or 7.76% of total shares; agreed that Meiling
Group made prepayment for other non-tradable share holders who fails to exercise stock reform
consideration, and when any such non-tradable shares shareholder circulates its non-tradable shares,
it must return the prepayment made by Meiling Group, or approved by Meiling Group in advance.
On Aug. 27, 2007, according to Share Merger Reform plan approved by Shareholders’ Meeting
related to Share Merger Reformheld on Aug 6, 2007, the Company made consideration that
non-tradable share holders deliver 1.5 share to A share holders per 10 shares, and Meiling Group合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第39 页
made prepayment 3,360,329 shares for some non-tradable share holders as consideration, and as
registered in Shenzhen Branch of China Securities Depository and Cleaning Corporation Limited
after Share Merger Reform plan implemented, the structure of Company’s shareholders is
following:
Before Share Merger Reform After Share Merger Reform
Share nature or holding
enterprise
Shares
Proportion
%
Shares
Proportion
%
Note
1. Non-tradable shares 149,012,606.00 36.02% 126,283,055.00 30.53%
Conditional
tradable shares
(1) Sichuan Changhong
Electric Co., Ltd.
45,000,000.00 10.88% 38,135,951.00 9.22% State shares
(2) Heifei Meiling (Group)
Holding Co., Ltd.
40,543,692.00 9.80% 30,999,055.00 7.49% State shares
(3) Sichuan Changhong
Electric Group Co., Ltd.
37,852,683.00 9.15% 32,078,846.00 7.76%
State-owned
corporate shares
(4) Other corporate 25,616,231.00 6.19% 25,069,203.00 6.06%
2. Tradable shares 264,630,343.00 63.98% 287,359,894.00 69.47%
Unconditional
tradable shares
(1) Domestically listed
RMB common shares
151,530,343.00 36.63% 174,259,894.00 42.13% A shares
(2) Domestically listed
Foreign shares
113,100,000.00 27.34% 113,100,000.00 27.34% B shares
Subtotal of shares 413,642,949.00 100.00% 413,642,949.00 100.00%
After approved by State-owned Assets Supervision & Administration Commission of Anhui
Provincial Government replied with Document WGZCQHan（2007） No.309 Meiling Group made
prepayment 3,360,329 shares as consideration for some non-tradable shareholders, and after the
situations of the Company’s structure of conditional tradable shares after consideration not prepaid
and actually prepaid in Share Merger Reform as followings:
After consideration not
prepaid in Share Merger
Reform
After consideration
actually prepaid in Share
Merger Reform
Shareholders of conditional Difference
tradable shares
Shares Proportio
n Shares Proportio
n Shares Proport
ion
Sichuan Changhong
Electric Co., Ltd. 38,135,951.00 9.22% 38,135,951.00 9.22% -- --
Heifei Meiling (Group)
Holding Co., Ltd. 34,359,384.00 8.31% 30,999,055.00 7.49% -3,360,329.00 -0.81%
Sichuan Changhong
Electric Group Co., Ltd. 32,078,846.00 7.76% 32,078,846.00 7.76% -- --
Other corporate 21,708,874.00 5.25% 25,069,203.00 6.06% 3,360,329.00 0.81%
Total of restricted
circulating shares 126,283,055 30.54% 126,283,055 30.53% -- --
After the accomplishment of Share Merger Reform, Sichuan Changhong held 38,135,951.00 shares
of the Company which accounted for 9.22% in total shares.
On May 29, 2008, Hefei State-owned Assets Supervision & Administration Commission
［HGZCQuan（2008）No.59］issued Notice On Meiling Dianqi Equities Held by Meiling Group合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第40 页
without Payment, in which 34,359,384 state-owned shares of Meiling Group held by the Company
(including 3,360,329 state-owned shares paid instead by Meiling Group for other non-tradable
shareholders in the Share Merger Reform)were transferred to Hefei Xingtai Holding Group Co.,
Ltd(hereinafter refers to Xingtai Holding Company) without payment.
On June 2, 2008, Meiling Group Company and Xingtai Holding Company signed Agreement on
Equity Transfer Without Payment, in which Meiling Group Company agreed to transfer its holding
30,999,100 state-owned shares(accounting for 7.49% in total shares) to Xingtai Holding Company
without payment; in the Share Merger Reform Scheme of the Company, the equities, which were
formed from the share merger reform consideration paid by Meiling Group Company for other
non-tradable shareholders, were also undertaken by Xingtai Holding Company. For the aforesaid
event, State-owned Assets Supervision and Administration Commission of the State Council
approved on August 7, 2008 with Reply to Related Matters on Transfer Shares Held by Part of
State-owned Shareholders of Hefei Meiling Co., Ltd.Without Payment ［GZCQuan（2007）No. 752］.
On August 27, 2008, 24,685,587 shares of the aforesaid equity transfer have been accomplished
procedure of transferring the ownership in Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited.
On Nov. 24, 2008, 1,710,671 shares of the aforesaid equity transfer have been accomplished
procedure of transferring the ownership in Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited.
On Oct. 28, 2008, 12,543,559.00 tradable shares, the first batch of the Company with conditional
subscription, were released conditional subscription, the share structure after releasing the
conditional conditions were as follows:
Before release After release
Types Amount(share)
Proportion
in total
shares(%)
Types Amount(share)
Proportion
in total
shares(%)
I. Tradable shares
with conditional
subscription
126,359,625 30.55
I. Tradable shares
with conditional
subscription
113,816,066 27.52
Shares held by state 69,135,006 16.71 Shares held by state 70,845,677 17.13
State-owned legal 32,078,846 7.76 State-owned legal 32,078,846 7.76
Public legal person’s 25,069,203 6.06 Public legal person’s 10,814,973 2.61
Senior executives’ 76,570 0.02 Senior executives’ 76,570 0.02
Foreign legal － － Foreign legal person’s － －
II. Tradable shares
with unconditional
subscription
287,283,324 69.45
II. Tradable shares
with unconditional
subscription
299,826,886 72.48
A Public shares 174,183,324 42.11 A Public shares 186,726,886 45.14
B shares 113,100,000 27.34 B shares 113,100,000 27.34
H shares and others — － H shares and others — －
III. Total shares 413,642,949 100 III. Total shares 413,642,949 100
On Nov. 3, 2008, the Company received Sichuan Changhong Electric Group Co., Ltd.’s Letter on
Transfer Shares of Hefei Meiling Co., Ltd in Agreement to Sichuan Changhong Electric Co.,
Ltd(hereinafter refers to Sichuan Changhong) delivered from the second largest shareholder
Changhong Group Company: on Oct. 29, 2008, Changhong Group Company sigend Agreement on
Euity Transfer of Hefei Meiling Co., Ltd with Sichuan Changhong, in which 32,078,846 tradable
A-shares with conditioan subscription of the Company (accounting for 7.76% in total shares) held
by Changhong Group Company. On Dec. 23, 2008, for the aforesaid event, State-owned Assets
Supervision and Administration Commission of the State Council approved with Reply to Related
Matters on Transfer Shares Held by State-owned Shareholders of Hefei Meiling Co., Ltd.合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第41 页
［GZCQuan（2008）No. 1413］. Ended Dec. 31, 2008, the aforesaid equity transfer have not been
accomplished the procedure of transferring the ownership in Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited.
Ended June 30, 2009, Sichuan Changhong and its accord actionist Changhong (Hong Kong) Trade
Co., Ltd. totally held 89,368,156 shares of the Company accouting for 21.61% of the total shares,
including Sichuan Changhong directly held A-shares of the Company totaled to 74,491,952
accouting for 18.01% of the total shares, and Changhong (Hong Kong) Trade Co., Ltd. held tradable
B-shares of the Company totaled to 14,876,204 accouting for 3.60% of the total shares.
Now the Company’s total shares are 413,642,949.00, including 113,816,066.00 conditional tradable
shares, 186,726,883.0 unconditional RMB common shares, and 113,100,000.00 unconditional
foreign shares listed in China. Legal Person Business License Registration number is
340000400001278; the business address is No. 2163, Lianhua Road, Ecomonic and Technological
Development Zone, Hefei City; legal representative: Zhao Yong; business scope: manufacturing
refrigerating appliance, air conditioner, washing machine, NC injection machine, computer water
heater, plastic products, packing material and ornament, engaging in self-manufactured product and
technique export business and import business of raw materials, machinery equipments, apparatus
& instruments and technique import business, sales of general merchandise, transportation.
1. Registerd address, organization form and address of headquater of the Company
Registerd address
Organization
form
address of headquater
No. 2163, Lianhua Road, Ecomonic
and Technological Development Zone,
Hefei City
Listed limited
liability
company
No. 2163, Lianhua Road, Ecomonic
and Technological Development
Zone, Hefei City
2. Business nature and main operations of the Company
Business nature main operations
Light manufacture
industry
The Company and its subsidiary are mainly engaged in production and
sales of refrigerators and freezers at present.
3. Name of the parent company and final actual controller of the group
Parent Company of the Company is Sichuan Changhong Electric Co., Ltd., ended June 30, 2009,
the total shares of the Company held by Sichuan Changhong (hereinafter refers to Sichuan
Changhong) directly or through person acting in concert is 89,368,156 and the proportion in total
shares of the Company is 21.61% and is the first largest shareholder; Xingtai Holding Company
held 26,396,258 shares of the Company accounting for 6.38％and is the second largest shareholder.
Changhong Group Company held 552,019,534 shares of Sichuan Changhong accounting for
29.08% and is the first largest shareholder of Changhong Group Company. State-owned Assets
Supervision & Administration Commission of Mianyang Municipality held 100% equities of
Changhong Group Company and is the final actual controller of the Company.
4. Approval reporter and approval report date of financial report
Approval reporter of financial report Approvalreport date of financial report
Board of the Directors of the Company August 7, 2009
II. Compilation basis of the Company’s financial statements
The Company’s operation is good now, has not made a decision to, or must, be liquidated or stop its合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第42 页
business in current or next fiscal period, and the Company’s financial statement is based on
sustainable operation, and compiled in accordance with related regulations of Corporate Accounting
Rules issued by Ministry of Finance on Feb 15, 2006, and the No.7 Questions and Responses of
Information Disclosure Standards of Public Companies ------ Compilation and Disclosure of the
Comparative Financial Accounting Information during the Transition Period between the New and
Old Accounting Standards, and the following main accounting policies, accounting assumptions.
III. Statement on compliance with Corporate Accounting Rules
Financial statements compiled by the Company are in compliance with Corporate Accounting Rules,
and actually and completely reflect the Company’s financial situation, operational effects, cash flow
and other related information.
IV. Accounting policy, accounting estimation
1. Fiscal year
It shall adopt calendar year, namely, one calendar year means period from January 1st to December
31st.
2. Accounting basis and valuation principle
Accounting basis is accrual basis. Valuation principle of every asset (except other regulations) refers
to historical cost when obtaining.
3. Standard currency and accounting methods to foreign currency transaction
RMB is used as the standard currency.
When foreign currency transaction occurs, approximate foreign exchange rate at first day of current
month (medium price of foreign currency quote price) shall be adopted and RMB shall be used to
record.
Foreign currency monetary items and foreign currency non-monetary items measured by fair value
shall be translated by spot exchange rates on balance sheet date. Exchange differences caused by
difference of spot exchange rates compared to that during initial confirmation or that of former
balance sheet date should be accounted for as follows: If it occurs in the preparing period to
construct, it should be accounted for as long-term unamortized expense (it should be recorded into
current gains or losses at current month of starting operation). It attributes to the assets that
complies with capitalization principle (fixed assets, investing real estate and long-term inventory)
and occurs in the capitalized period, it should be recorded as cost of capitalized assets. It attributes
to foreign currency no-cash items measured by fair value; it should be recorded as fair value
variation into current gains or losses. It occurs due to other reasons, it should be recorded into
financial expense of current period. Foreign currency monetary items foreign currency
non-monetary items measured by historical cost shall be translated by spot exchange rates of
transaction date without changing recording currency amount.
4. Translation exchange rate of foreign currency statement and accounting methods to
translation difference
When accounting statements of the subsidiaries in foreign currency is combined, all assets and
debts items should be translated by spot exchange rate on combination date, and all owners’ equity
items except undistributed profit should be accounted for by spot exchange rate on transaction date.
The undistributed profit should be based on the translated amount in Profit Distribution Sheet. After
translation, the difference between assets, debts and owner equities as translations variation should
be listed respectively under undistributed profit. The revenue and expense items in the Profit &
Loss Sheet should be translated by average exchange rate between the approximate exchange rate
(Middle price of foreign currency quote price) on starting date and ending date of reporting period.
The cash flow of foreign currency and subsidiaries out of China should be translated by average
exchange rate between the approximate exchange rate (Medium price of foreign currency quote
price) on starting date and ending date of reporting period. The influence amount due to foreign合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第43 页
exchange variation as adjustment item should be listed individually in the Cash Flow Sheet.
5. Defined standard of cash equivalent
Our company and our subsidiaries use investment with short holding period (generally refers to
three months form procurement date), strong liquidity, eligibility to convert into cash of known
amount and very small value variation risk as cash equivalent upon preparation of cash flow
statement.
6. Accounting method of tradable financial assets
Tradable financial assets include stock, bond, fund and derived instruments not used as
effective hedging tool that are classified into the same kind. It shall be verified initially at
fair value when obtaining, while relevant transaction expense shall be accounted for current
gains or losses when it occurs. Price of actual payment includes announced but not drawn
cash dividend or due but not drawn bonds interest which shall be accounted for receivable
items. The interest or cash dividend obtained during the holding period shall be accounted
for investment gains. When tradable financial assets are disposed, the difference between
fair value and initial book value shall be accounted for investment gains and at the same time
fair value variation gains or loss shall be adjusted. Fair value variation shall be accounted for
current gains or loss.
7. Confiming standard and withdrawal method of provision for bad debt received
For the single account receivable had evidences to show that its occurred devaluated or single
account receivable with single amount, took singly devaluation test; in according to current value of
future cash flow was lower than the balance of its book value, confirmed the devaluation losses,
withdrew the provision for bad debt. In balance sheet date, withdrew the provision for bad debt in
according to credit risk characteristics of accout receivable combining with the experienced data of
the Company in previous years and actural situation in accout age analysis, and the withdrawal
proportion was as follows:
Accounting
age
Within
one year
From one
year to
two years
From two
years to
three
years
From
three
years to
four years
From four
years to
five years
Above
five years
Reserve rate
(%) 5% 15% 35% 55% 85% 100%
Accounts receivable from associated parties, which are attributed to transaction settlement between
associated parties, shall not be prepared reserve in bad debt due to controllable risk. The receivables
paid for staff, interim borrowing of long term equity investment and other receivables will be
reduced from staff salary monthly or carried forward to long term equity investment, so bad debts
shall not be caused and reserve in bad debts shall not be prepared.
8. Accounting method of stock in trade
(1) Stock in trade shall be divided into Real estate development products and non-development
products. Real estate development products include completed development products, development
products in process and planned development lands. Non-development products include raw
materials, commodity stocks, work in process, self-made semi finished products, materials
consigned to proceed, low-value consumption goods, etc. The inventory system of stock in trade is
perpetual inventory system.
The completed development products refer to properties that are built and prepared for sale. The
development products in process refer to properties that is not completed and prepared for sale or
operation. The planned development lands refer to the lands that are purchased and decided to be
used for sale or rent. When overall development of project starts, all items shall be transferred into
development products in process. When development of project starts in different periods, the used合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第44 页
lands in different periods shall be transferred into development products in process, while unused
lands at the ending shall keep in the original projects. Actual cost of public utilities shall be
accounted for development cost. Upon completion, development cost shall be amortized as the cost
of the housing and other properties saleable except the matching facilities that have economic value
and have right of income, development cost of which shall be accounted for investment real estate.
(2) Real estate development products in the stock in trade shall be calculated by actual cost, and raw
material such as color kinescope and electronic apparatus shall be calculated by standard cost. At
the end of each month, price difference shall be allocated according to actual dispatched quantities
and production cost of current month shall be adjusted accordingly. Low-value consumption goods
shall be calculated by standard cost in general and shall adopt one-off amortization method when
dispatched. At the end of each month, price difference shall be allocated according to actual
dispatched quantities and production cost of current month shall be adjusted into actual cost
accordingly. Commodities stock shall be calculated by standard cost and carried forward into
product sales cost. At the end of each month, price difference of commodities stock shall be
amortized and sales expense of current month shall be adjusted, material in transit shall be recorded
by actual cost.
(3) Stock in trade shall be calculated at the lower price between historical cost and net realizable
value. Inventory falling price reserves shall be made according to difference between costs of single
stock item and net realizable value, the accrual of inventory falling price reserves shall be accounted
for current gains or loss.
9. Accounting method of mould expense
Mould expense shall be calculated by actual cost when obtaining and accounted for deferred
expense. When mould is used, mould expanse shall be amortized within one year according to
workload method. If the amortization period is within one year, mould expense shall be amortized
according to actual workload; if it is more than one year, the remaining shall be transferred into
current expense when one year expires
10. Accounting method of held-to-maturity investment
Held-to-maturity investment refers to non-derived financial assets whose due date is fixed, whose
recoverable amount may be fixed and are intentionally and full of capacity hold until due date. The
held-to-maturity investment shall be confirmed by the total of fair value and relevant transaction
expense. If the payment includes the bond interests that is due, but not drawn, the bond interests
shall be individually recorded receivable items. Held-to-maturity investment during the holding
period shall be measured according to amortized cost and practical rate so as to confirm interest
revenue and invest gains. The difference between received payment and book value of this
investment at disposal shall be accounted for investment gains.
Objective evidences show that when financial assets depreciate on balance sheet date, the difference
of expected cash flow present value of financial assets and book value should be accounted for
current gains or losses.
11. Accounting method of saleable financial assets
It refers to salable non-derivative financial assets when obtaining, accounting receivables,
held-to-maturity to investment, and other financial assets out of tradable financial assets including
saleable stock investment and bond investment.
It shall be calculated by the total of fare value and relevant transaction expense. If the payment
includes the bond interests and cash dividends that are due, but not drawn, the bond interests shall
be individually recorded receivable items. The interest income or cash dividend obtained during the
holding period shall be accounted for investment gains on balance sheet date. If saleable financial
assets are measured by fair value on balance sheet date, fair value variation shall be accounted for
capital reserve (other capital reserve). When it is disposed, the difference between the received
payment and corresponding disposed amount of book value and accumulated fair value variation of
owner’s equity shall be accounted for investment gains.
On balance sheet date, whether saleable financial assets are depreciated or not shall be analyzed and合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第45 页
judged. When depreciation loss is confirmed, accumulated loss due to reduction of fair value that is
accounted for owners’ equity shall be transferred and accounted for depreciation loss.
12. Accounting method of long-term equity investment
(1) Confirmation of initial investment cost:
A．Long-term equity investment caused by enterprise combination
Obtained book value of owner’s equity of combined party on combination date shall be taken as
initial investment cost of long-term equity investment under the same control. The difference
between initial cost and book value that are paid counter value shall be accounted for capital reserve.
If capital reserve is not enough to be offset, retained earnings shall be adjusted.
For long-term equity investment caused by enterprise combination under different control, the total
of fair value of transferred assets, occurred or burden debts and issued equity securities shall be
accounted for Long-term equity investment cost. During the merger, the difference between fair
value of transferred net assets as counter value and book value shall be accounted for current gains
or losses as asset disposal gain or loss.
B．Long-term equity investment under other conditions
If Long-term cash acquires equity investments, the actual payment shall be initial investment cost
which includes direct relevant expenses, taxation and other necessary disburses related to
acquisition of long-term equity investment. If Long-term equity investments are acquired by issuing
equity securities, fair value of issuing equity investment shall be initial investment cost. If
Long-term equity investments are invested, fair value or agreed price in contract or agreement shall
be initial investment cost. If Long-term equity investments are acquired by non-cash assets
exchange, fair value of non-cash assets and relevant taxation and fees shall be initial investment
cost. If Long-term equity investments are acquired by debts restructuring, initial investment cost
shall be confirmed according to Accounting Standards for Business Enterprises No.12–Debt
Restructurings.
If the actual payment for acquiring long-term equity investment includes cash dividends or profits
that are already announced, but not withdrawn, this cash dividends or profits shall not be long-term
equity investment cost.
(2) Consequent measurement of long-term equity investment
A. The long-term investment to subsidiary company and long-term equity investment that has no
common control, no significant influence to invested unit, no quotation in active market or no
reliable measurement of fair value shall be calculated by cost method. The consolidated financial
statements to subsidiaries shall be adjusted from equity method to cost method.
B. Long-term equity investments that are made to joint ventures and associated enterprises or, have
common control or significant influences shall be accounted for by equity method that has common
control to invested unit and consortium which has significant influence to invested unit by equity
method. The investment gains receivable from invested units based on the fair values of all
recognized assets when investing shall be confirmed upon the net profit of the invested units is
adjusted. If the accounting policy and accounting periods are different from that of the invested
units, the financial statements of the invested units shall be adjusted according to accounting policy
and accounting periods of our company and then invest gains shall be confirmed accordingly. When
net loss of the invested units is confirmed, the minimum of long-term equity investment book value
and other long-term rights and interests to the invested units in essence shall be zero except that
additional damage obligations shall be taken. If the invested units realize net profits, the share of
profits shall be confirmed after unconfirmed loss share is made up.
(3) Depreciation reserve of long-term equity investment
For the long-term equity investments that are accounted for by cost method, have no quotation in
active market or have no reliable fair value, the difference between book value of respective
investment items and present value of future cash flow discounted at current market yield rate in
similar financial assets shall be accounted for long-term equity investment appreciation. For other
long-term equity investments, the amount that recoverable amount is lower than its book value shall合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第46 页
be confirmed as depreciation. While the recoverable amount depends on the more between net
value after fair value minus disposal expense and present value of future cash flow of assets.
13. Accounting method of investment real estate
Cost of outsourcing investment real estate include purchase price, relevant taxation and fees and
other disburse that can be attributed to this asset. The cost of self-built investment estate constitutes
all necessary disburses before the built assets reaches usable conditions. Consequent measurement
of investment estate shall be measured by cost method which account method is the same to fixed
assets and land (intangible assets). When the evidence show that it is necessary to have depreciation
test on balance sheet date, the amount that its recoverable amount is lower than book value shall be
confirmed as assets depreciation loss and be accounted for current gains or loss, at the same time
reserve for assets depreciation shall be made.
14. Pricing and depreciation method of fixed assets
(1) Standard: Fixed assets refer to the houses, buildings, machines, appliances, transportation tools
and other equipments and instruments related to production and operation whose service life is
more than 2 years and unit price is more than RMB2, 000. 00.
(2) Pricing: Fixed assets are accounted for actual cost. Financing rented fixed assets shall be
accounted for based on the lower between the book value of leased assets on lease start date and
present value of the minimum lease payment.
(3)Depreciation: Deprecations of fixed assets shall be calculated on average in straight-line method.
According to original value and service life, depreciation rate shall be decided after the net scrap
value is reduced. When the fixed assets that already make depreciation reserve are depreciated,
depreciation rate shall be confirmed on net book value after original value minus accumulated
depreciation and accrual depreciation reserve. The accumulated depreciation that is made before
depreciation reserve of fixed assets is made is not adjusted. The classifications and depreciation
rates are as follows:
Asset classifications Service life Scrap rate Annual depreciation rate
House & building 30-40 years 4% 3.20%-2.40%
Machinery equipment 10-14 years 4% 9.60%-6.86%
Transport tool 5-12 years 4% 19.00%-8.00%
Other equipments 8-12 years 4% 12.00%-8.00%
(4)Depreciation reserve: Fixed assets should be inspected each by each on balance sheet date. If the
market price goes down continuously or the recoverable amount is lower than its book value due to
outdated skills, damage and long-term unused, the difference between the recoverable amount and
book value shall be accounted for asset depreciation loss and accounted for current gains or loss. At
the same time, depreciation reserve of fixed assets shall be made. The depreciation reserve of fixed
asset shall be carried back. The fixed assets that satisfy the following conditions shall make
depreciation reserve in full amount.
i. The fixed assets that is not used for long period and shall not be used in the foreseeable future and
have no transferable value.
ii. The fixed assets are not already used due to technical advance.
iii. The fixed assets through which the large volume of disqualified products shall be reduced as
though the fixed assets can be still used.
iv. The fixed assets that are damaged so as to have no useful value and transferable value.
v. Other fixed assets that can’t provide economic value in essence.
(5) Consequent disburses: The consequent disburses related to fixed assets shall be accounted for
book value of fixed assets if the economic benefit that can flow into our company is more than
original estimate such as the service life of fixed assets are prolonged, qualities of products are
enhanced in essence and the cost of products are reduced in essence. The amount of fixed assets合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第47 页
after increasing shall be more than recoverable amount of fixed assets. Other consequent disburses
except the above shall be accounted for current gains or loss and shall not be accounted through
accrual mode and deferred mode.
① The repair expense of fixed assets shall be accounted for current period expense.
② The improvement disburse of fixed assets shall be accounted for book value of fixed assets. The
amount of fixed assets after increasing shall be more than recoverable amount of fixed assets.
③ If repair or improvement of fixed assets can not be distinguished or repair and improvement of
fixed assets is mixed; the above-mentioned principle shall be adopted. The relevant consequent
disburses shall be accounted for value or current period expense of fixed assets.
④ If the fitment expense of fixed assets comply with capitalization principle, it will be listed in the
ledge account: Fixed assets- fitment it shall be depreciated within the shorter period between two
fitment periods and useable life of fixed assets. If there is the balance of fitment of fixed assets
when next fitment starts, the balance shall be accounted for current period non-operation disburse at
one time.
⑤ Consequent disburses of financing leased fixed assets shall be accounted for according to
above-mentioned principles. If the fitment expense of this fixed asset complies with capitalization
principle, it shall be depreciated within the shortest period within two fitment periods, useable life
of fixed assets and remaining leasing period by reasonable methods.
⑥ The improvement disburses of rented fixed assets under operation lease method shall be
accounted for operation lease fixed assets improvement. It shall be depreciated within the shorter
between remaining leasing period and service life of leased fixed assets by reasonable methods.
15. Accounting method of construction in process
Construction in process refers to the disburses that are spent for building fixed asset or making
technical reconstruction to fixed asset before the fixed assets satisfy the scheduled useable
conditions which include equipments and materials used for project, advanced project amounts,
uncompleted project disburses and capitalization disburses of borrowing expense. The capitalized
amounts of borrowing expense for work in process shall be accounted for project cost according to
Accounting Standards for Business Enterprises No.17–Borrowing costs.
If construction in process satisfy the scheduled useable conditions, but is not transacted final settle
formalities, the relevant project shall be estimated and transferred into fixed assets according to
project budget, price or project cost from the date of reaching scheduled useable conditions. After
final settlement is completed, the estimated price and accrual depreciation shall be adjusted
according to final settlement figure.
The overall inspection on work in process shall be taken on balance sheet date. If the strong
evidence shows depreciations occurs because work in process are stopped to build for long period
and are forecasted to not restart to construct within following 3 years or economic value is
ascertained due to outdated skills and performance, depreciation reserve for work in process shall
be made.
16. Confirmation principle of capitalized borrowing expense, capitalization period and
calculation method of capitalized borrowing expense
Borrowing expenses include interest expense, amortization of discount or premium, auxiliary
expenses and exchange difference due to borrowing in foreign currency. The expense of special
borrowing reduces relevant interest income or gains. The discount and premium of borrowing shall
be confirmed amortizable amount at each period and interest amount shall be adjusted accordingly.
Borrowing expenses shall be accounted for respectively according to financing purpose. If it occurs
in the preparing period to construct, it should be accounted for as long-term unamortized expense (it
should be recorded into current gains or losses at current month of starting operation). If it attributes
to the assets (fixed assets, investment real estate and long-term inventory) that are satisfied with
capitalization principle and is within capitalized periods, it should be capitalized before assets reach
the scheduled useable or saleable conditions; other borrowing expense shall be accounted for
current period financial expense. For the expenses of common borrowing during the preparation合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第48 页
period or for purchasing or manufacturing assets satisfied with capitalization principle, it equals to
the weighted average of the assets whose accumulated expense or capital disburse is more than
common borrowing times capitalization rate of occupied common borrowing. So the long-term
deferred expenses of common borrowing that are also called capitalized interest amount are fixed.
If abnormal interruption occurs in the capitalization period which period is more than 3 months,
capitalization of interest shall be paused and its interest shall be accounted for current period
expense until development action restarts.
17. Accounting method of intangible assets
(1) Intangible assets shall be recorded at actual cost when obtaining, during which the cost of
self-developed intangible assets shall be accounted for according to Accounting Standards for
Business Enterprises No.6–Intangible assets.
(2) The intangible assets whose service life is uncertain shall be not amortized. At year-end, its
service life shall be checked. If the evidence shows that its service life is limited, its service life
should be estimated and it should be reclassified into the intangible assets with limited service life.
The intangible assets with limited service life shall be amortized in straight line of which land use
right shall be amortized on average from the date of receiving investment or confiscation date. The
transferred land use right shall be amortized on remaining service life, and other intangible assets
shall be amortized according to benefit period, benefit quantities or lawful protection period.
Service life and amortization method of the intangible assets with limited life shall be checked on
balance sheet date. If the above are different from previous estimate, amortization period and
amortization method shall be changed.
(3) Depreciation test on all intangible assets shall be done on balance sheet date. The amount that
book value of intangible assets is lower than its recoverable amount shall be reserved for intangible
assets depreciation. Depreciation reserve cannot be carried back.
18. Amortization methods and periods of long-term unamortized expense
Long-term unamortized expense shall be accounted for by at actual expense and amortized on
average within beneficial period. The improvement disburse of rented fixed assets under operation
lease method shall be accounted for long term deferred expense and be amortized on average within
beneficial period.
19. Accounting method of staff remunerations
Payable staff remunerations excluding compensation for releasing labor contract with staff shall be
treated as follows according to beneficial objects during their labor service period
(1) If it attributes to products or labor service, it shall be accounted for inventory cost or labor
service cost.
(2) If it attributes to construction in process or intangible assets, it shall be accounted for cost of
fixed assets or intangible assets.
(3) Other staff remunerations shall be accounted for current period expense.
If the staff labor service contracts are released before its expiry or the advice on compensation for
the staffs that accept voluntary resign is given out and at the same time it satisfy that the company
already make out official plan for releasing labor service contract or prepare the advice on voluntary
resign plan, the above-mentioned releasing of labor service contract or advice on voluntary resign
plan can not be withdrawn unilaterally, then forecasted liabilities due to compensation for releasing
labor service contract with staff shall be accounted for current period expense.
20. Confirmation principle of revenue
(1) Commodities sales: operation revenue shall be confirmed and recognized when major risk and
remuneration are already transferred to buyer, consequent administration and actual control on it
don’t exist, relevant revenue achieve or get the proof of receiving and relevant cost related to sales
of commodities shall be measured reliably. The confirmations of export revenue are as follows: If
the delivery term is FOB, the revenue shall be recognized when the goods are delivered to
forwarder consigned by buyer. If the delivery term is CIF, the revenue shall be recognized when the
goods are delivered to the port of buyer. The revenue by installation payment shall be recognized on合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第49 页
different receipt dates respectively. The revenue of real estate shall be recognized when real estates
are completed and accepted, the sales contracts are signed and buyer’s payment certificates for
achieving real estimate according to sales contract are received (when subscription are received or
remaining payment arrange are confirmed).
(2) Properties leasing: its revenue shall be accounted for in straight line according to house leasing
contract or agreement.
(3) Labor service: its revenue shall be accounted for when labor services provided, payment are
already received or relevant proofs are received. If Properties administration is already provided in
properties administration service, relevant economic interest related to properties administration
service can flow into the company and relevant cost related to properties administration service, the
revenue of properties administration shall be recognized.
(4) Release of assets: when relevant economic interests can flow into the company and the amount
of revenue can be measured reliably, interest revenue and royalty revenue shall be recognized.
21. Accounting method of income tax
Balance sheet debt method shall be adopted.
The deferred income tax liability or deferred income tax asset and relevant deferred income tax
expense or gains shall be recognized according to temporary variance and applicable income tax
rate except the deferred income tax assets and deferred income tax liability in Accounting Standards
for Business Enterprises No. 18–Income Tax shall not be recognized. The deferred income tax
assets due to deductible temporary variance shall be recognized its limit is taxable income that can
be used to deduct deductible temporary variance. If the strong evidence shows that the taxable
income is enough to deduct deductible temporary variance in the future, the unrecognized deferred
income tax assets of previous periods shall be made.
22. Debt reorganization
(1) If debtor pays debt in cash, the difference between the book value of debt reorganization and
actual payment shall be recognized as debt reorganization gains and shall be accounted for current
gains or loss. If debtor pays debt in non-cash assets, the difference between the book value of debt
reorganization and fair value of non-cash assets shall be accounted for debt reorganization gains,
while the difference between the book value of non-cash assets and fair value of non-cash assets
shall be accounted for asset transfer gains or loss and recognized as current gains or loss. If debts
are turned into capital, the face value of share creditors enjoy and give up creditor’s right shall be
recognized as capital stock or paid-in capital, while the difference between fair value of share and
stock capital or paid-in capital shall be recognized as debt reorganization gains and accounted for
current gains or loss. If the debt conditions are amended, the fair value of the debt under new debt
conditions shall be recognized as book value of reorganized debts, while the difference between
book value of reorganized debt and present value of payable amount shall be recognized as debt
reorganization gains and accounted for current gains or loss. If contingent expenses are involved, it
shall be put into payable amount and be discounted, and then debt reorganization gains shall be
recognized. If debt reorganization is made by mixed mode, the following process order should
prevail: assets, assets offsetting debt and amending debt conditions.
(2) Creditor shall recognize the difference between book value of debt reorganization and cash, fair
value of received non-cash assets, fair value of share right and present value of receivable (if
depreciation reserve is made, depreciation reserve shall be written off) as debt reorganization loss
and record it as current gains or loss. If creditor receives stock in trade, fixed assets, intangible
assets, long-term equity investment and others, their fair value shall be accounted for. If contingent
gains are involved, it shall be included in receivable to confirm debt reorganization loss. When
contingent gains occur actually, it shall be recognized as current gains or loss.
23. Share payment
(1) If the share payment in equity tool has no waiting period and can be exchanged to get staff
service or other similar services, the fair value of equity tool on award date shall be accounted for
relevant cost or expense and corresponding capital reserve shall be increased. After award, the合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第50 页
optional right can be taken immediately in cash, the fair value of debt on award date shall be
recorded as relevant costs or expenses and corresponding liabilities shall be increased and
corresponding capital reserve shall be increased. If the payment is made in cash, the fair value of
debt shall be recalculated and the increased debt shall be recognized accordingly.
(2) If the share payment in equity tool has waiting period, the service rendered from staff or other
parties shall be accounted for cost or expense. If equity settlement is related to staff, our company
shall base on the best estimate of quantities of equity tools. The fair value of equity tool on award
date shall be accounted for relevant cost or expense and corresponding capital reserve shall be
increased. If payment is in cash, the fair value of debt on balance sheet date shall be recalculated
and debt shall be increasing accordingly. If payment is involved in equity settlement and the
services from other party’s service on acquisition date are rendered, fair value of other party’s
services shall be measured and capital reserve shall be increased accordingly.
(3) If payment is in equity settlement, stock capital and capital premium shall be confirmed on
option date. At the same time, other capital reserve shall be carried forward that are confirmed
within waiting period. If the equity tools are not taken, valid or cancelled wholly or partly, other
capital reserve shall be transferred to undistributed profit on expiry date of option valid period and
cost or expense shall be written off.
(4) If payment is in cash, the cost or expense after option valid date shall not be confirmed. The fair
value variation of debts shall be recognized as current gains or loss (fair value variation gains or
loss).
24. Preparation method of consolidated accounting statements
The consolidated scope should be based on control. According to financial statements of the
company, subsidiary company and other relevant data, each item shall be combined according to
Accounting Standards for Business Enterprises and Application Guidance to Accounting Standards
for Business Enterprises. The internal major transactions and capital receivable and payable shall be
offset when combining accounting statements. If the accounting policy of subsidiary company is
different from that of the company, the accounting policy of the company shall prevail. The
accounting statement of subsidiary company shall be adjusted for merger.
If the sales (which include reducing investment proportion and sales of all holding share) or
purchases of subsidiary company occur within report period, the relevant accounting method shall
be followed according to regulations of Ministry of Finance.
V. Changes to accounting policy and accounting estimation and correction on accounting
mistakes.
1. Changes to accouting policy: In the report period, there were no changes to accounting policy.
2. Changes to accouting estimation: In the report period, there were no changes to accouting
estimation.
3. Correction on accounting mistakes: In the report period,, there were no correction on accouting
mistakes.
VI. Taxation
1. The payable taxes and tax rate of the company are as follows:
Categories of tax Taxation base Tax rate
VAT
Production sale revenue and
processing revenue 17%
City construction and maintenance
tax
Turnover tax 5-7%合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第51 页
Extra charges for education Turnover tax 3%
Local extra charges for education Turnover tax 1%
Enterprise income tax Income taxable 15%-25%
In accordance with the Notice on Publicize the Recognition Lists on Second High and New
Technology Enterprises of Anhui Province in 2008[KGao〔2009〕No. 13] jointly issued by Anhui
Science&Technology Department, Anhui Finance Department, Anhui Provincial Office of State
Administration Of Taxation, Local Taxation Bureau of Anhui Province dated Jan. 21, 2009, The
Company and it subsidiary Zhongke Meiling Low-Temperature Technology Co., Ltd were
confirmed as the Second High and New Technology Enterprises of Anhui Province in 2008 and got
the Certificate on High and New Technology Enterprises(the certificate number were respectively
GR200834000169 and GR200834000177 with 3 years’ validity). In accordance with the regulations
on Enterprise Income Tax Law, the Company and Zhongke Meiling Low-Temperature Technology
Co., Ltd began to enjoy the preferential policy like state enterprise income tax rate for high and new
technology enterprises since Jan. 1, 2008, and enjoy the income tax rate of 15% for high and new
technology enterprises within 3 years. Other companies pay the income tax as the rate of 25%.
2. Other taxes: according to state regulations.
VII. Enterprise merger and consolidated financial statements
(I) Controlling subsidiaries
1. Controlling subsidiaries directly obtained from external investment
Names Registere
d place
Registered
capital
(0000)
Initial
investmen
t(0000)
Holding
percenta
ge
Voting
rights
proport
ion
Business scope
Econo
my
nature
or type
Legal
represen
tative
Zhongke
Meiling
Cryogenic
Technology
Company
LTD(1)
Hefei 6,000.00 4,200.00 70.00% 70.00%
Research, development,
production, sales and service
of low temperature
refrigeration equipment and
products, self-operation and
agency for import & export
business of various kinds of
commodities and
technologies
Company
limited
Wang
Yong
Jiangxi Meiling
Refrigeration Co.,
Ltd.(2)*
Jiangxi
.Jingde
Town
4,000.00 4,000.00 97.00% 100.00%
R&D, manufatures and sales
of refrigeration appliance,
electronic products and
fittings
Company
limited
Wang
Yong
Mianyang
Meiling
Refrigeration Co.,
Ltd.(3)**
Sichua
n
Miany
ang
5,000.00 5,000.00 97.00% 100.00%
R&D, manufatures and sales
of refrigeration appliance,
electronic products and
fittings
Company
limited
Li
Daijian
g
*The Company held 90 percent equity of Jiangxi Meiling Refrigeration Co., Ltd., and 70 percent
equity of Zhongke Meiling Cryogenic Technology Company LTD which held 10 percent equity of
Jiangxi Meiling Refrigeration Co., Ltd. Therefore, in total, The Company held 97 percent equity of
Jiangxi Meiling Refrigeration Co., Ltd.
** The Company held 90 percent equity of Mianyang Meiling Refrigeration Co., Ltd., and 70
percent equity of Zhongke Meiling Cryogenic Technology Company LTD which held 10 percent
equity of Mianyang Meiling Refrigeration Co., Ltd. Therefore, in total, The Company held 97
percent equity of Mianyang Meiling Refrigeration Co., Ltd.
(1) Zhongke Meiling Cryogenic Technology Company LTD（hereinafter called “Zhongke Meiling
Company”） was established on Oct 29th of 2002 by the Company and CAS’s Physical & Chemical
Technology Research, whose registered capital was RMB 60,000,000 yuan. The Company poured
RMB 42,000,000.00 yuan for this investment, including material contribution of RMB合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第52 页
35,573,719.70 yuan and cash contribution of RMB 6,426,280.30 yuan which totally accounted for
70% of the registered capital. CAS’s Physical & Chemical Technology Research made investment
by its intangible asset-new mixed throttle refrigeration technology and its application research in
low-temperatured storage box. The estimated value for the license of this technology was RMB
18,000,000 yuan accounting for 30% of registered capital. Its registration Number was
3401001006416 and registered capital was RMB 60,000,000 yuan and its business scope included
research, development, production, sales and service of low temperature refrigeration equipment
and products, self-operation and agenct for import & export business of various kinds of
commodities and technologies.
(2) Jiangxi Meiling Refrigeration Co., Ltd (hereinafter referred to as Jiangxi Meiling Company): on
Oct. 22, 2007, with the decision made in the 27th meeting of the 5th session of Board of Directors,
the Company took cash RMB 18,000,000 as investment amount which accounted for 90% of the
registered capital; while Zhongke Meiling took cash RMB 2,000,000 as investment amount which
took 10% of the registered capital. The above real received capital has been validated by the Gan
Jingde No.312 (2007) report issued by Jiangxi Jingde CPA on Nov. 2, 2007. Then on Nov. 6, 2007,
Jiangxi Meiling Company made its enterprise registration license in Administration Bureau of
Industry and Commerce of Jiangxi Jingde Town. The business license number for an enterprise as a
legal person: 360200110000441; registered capital: RMB 20,000,000; office place: No. 558 of Cidu
Avenue of Jingde Town; legal representative: Wang Yong; business scope: R&D, manufacture and
selling of refrigerator appliances, electrical products and relevant fittings.
On Dec 10th of 2008, Jiangxi Meiling Company increased its capital and shares. Its registered
capital was increased to RMB 40 million, including the cash investment RMB 45 million from the
Company, among which RMB 36 million was input as registered capital accounting for 90% of the
registered capital and RMB 9 million was written into capital reserve of Jiangxi Meiling Company;
and Zhongke Meiling poured cash RMB 5 million as investment, among which RMB 4 million was
input as registered capital accounting for 9% of the registered capital and RMB 1 million was
written into capital reserve of Jiangxi Meiling Company. The above real received capital has been
validated by the Gan Jingde No.354 (2008) report issued by Jiangxi Jingde CPA on Dec. 22, 2008.
Then on Dec.25, 2008, Jiangxi Meiling Company transacted the procedure for its change in
registered capital in the Industry and Commerce Administration Bureau.
(3) Mianyang Meiling Refrigeration Co., Ltd (hereinafter referred to as Mianyang Meiling
Company): on Dec. 1, 2008, with the decision made in the 9th meeting of the 6th session of Board of
Directors; on Jan. 22, 2009, with the 7th temporary meeting of the 3rd Board of Directors of
Zhongke Meiling Company, the Company took cash RMB 45,000,000 as investment amount which
accounted for 90% of the registered capital; while Zhongke Meiling took cash RMB 5,000,000 as
investment amount which took 10% of the registered capital. The above real received capital has
been validated by the CXKYan No.008 (2009) report issued by Sichuan Xingrui CPA on March 5,
2009. Then on March 6, 2009, Mianyang Meiling Company made its enterprise registration license
in Administration Bureau of Industry and Commerce of Mianyang Hi-tech Development Zone. The
business license number for an enterprise as a legal person: 510706000014939; registered capital:
RMB 50,000,000; office place: No. 33, Mianxing East Road, Mianyang Hi-tech Development Zone ;
legal representative: Li Daijiang; business scope: R&D, manufacture and selling of refrigerator
appliances, electrical products and relevant fittings.
2. Controlling subsidiary obtained by enterprise merger
(1)Enterprise merger under the same control refers to that the enterprises involved in merger, no
matter before or after the merger, are controlled by the same party or several same parties. Besides,
this control is not temporary. Judgment standards for enterprise merger under the same control
include: 1) enterprise merger occurred between parent company and subsidiary in the same group
(parent company), and subsidiary and subsidiary. 2) Parties involved in merger are controlled by the
terminal controller within a long time, no matter before the merger or after it. For details, it means合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第53 页
that before the merger (also refers to before the merger date), the parties involved in the merger
should be under the control of the terminal controller over 1 year(1 year included); 3) In judging the
question whether the merger between enterprises belongs to enterprise merger under the same
control, it should integrate the particulars of those enterprises which are involved in the merger, and
principle of Substance Important than Formal should be adopt in judgment.
(2)The final controller of the Company: the parent company of the Company is Sichuan Changhong,
ended June 30, 2009, the total shares of the Company held by Sichuan Changhong (hereinafter
refers to Sichuan Changhong) directly or through person acting in concert is 89,368,156 and the
proportion in total shares of the Company is 21.61% and is the first largest shareholder; Xingtai
Holding Company held 26,396,258 shares of the Company accounting for 6.38％and is the second
largest shareholder. Changhong Group Company held 552,019,534 shares of Sichuan Changhong
accounting for 29.08% and is the first largest shareholder of Changhong Group Company.
State-owned Assets Supervision & Administration Commission of Mianyang Municipality held
100% equities of Changhong Group Company and is the final actual controller of the Company.
(3)Particulars about the subsidiary obtained from enterprise merger under the same control
Names Registered
place
Registere
d capital
Investment
as of
year-end
Holding
percenta
ge
Voting
rights
proportio
n
Business scope
Economy
nature or
type
Legal
representa
tive
Hefei
Changhong
Meiling
Refrigerati
on Co.,
Ltd.
Hefei
RMB 20
million
RMB
20,140,700
100% 100%
Producing, sales and
R&D of appliance,
electrical products,
mechanic products
and relevant fittings;
technology
counseling for
appliance and
electrical products;
import and export
business(operate
with admission
license for those
projects referring to
administrative
admission).
Company
limited Li Jin
Hefei Changhong Meiling Refrigeration Co., Ltd.(hereinafter called as Changhong Meiling
Refrigeration) was established by Sichuan Changhong and the Company. On Jan 19th of 2006, it
was officially set after the registration in Hefei Industry and Commerce Administration Bureau and
the registered number for its business license for an enterprise as a legal person was
3401001007201. The registered capital was RMB 20 million, among which Sichuan Changhong
took RMB 18 million for this investment and RMB 2 million from the Company, which
respectively accounted for 90% and 10% of the registered capital. The real reception of the
registered capital has been validated by WZJ (2006) No.1003 report issued by Anhui Zhongjian
CPA. The registered place of Changhong Meiling Refrigeration was No.111 Shimen road, Economy
and Technology Industry Park, Hefei. Its legal representative was Li Jin. On Jan 28th of 2008, the
proposal on Purchasing 90% Equity of Hefei Changhong Meiling Refrigeration Co., Ltd has been
examined and approved in the 29th meeting of the 5th board of directors of the Company. In order to
completely solve the related transactions and competition problem existed between the Company
and Changhong Meiling Refrigeration in refrigerator manufacture and sale, and to further perfect
the Company’s legal person administration structure as well, the Company was agreed to purchase
90% equity of Changhong Meiling Refrigeration held by Sichuan Changhong. According to Assets
Appraisal Report on Equity Transfer Items of Hefei Changhong Meiling Refrigeration Co., Ltd.-合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第54 页
CHH(2008)No.17 report issued by Sichuan Huaheng Asset Appraisal Co., Ltd on Jan 25th of 2008,
Dec 31st of 2007 was taken as appraisal reference date and the appraisal value of the transferred
equity of Changhong Meiling Refrigeartion was RMB 22,630,400. Negotiating with Sichuan
Changhong, and on the basis of the appraisal value, the Company confirmed that the amount for
transferring 90% equity of Changhong Meiling was RMB 20,367,400. On Jan 30th of 2008, the
Company signed Equity Transfer Contract on Hefei Changhong Meiling Refrigeration Co., Ltd.
with Sichuan Changhong. All the equity of Changhong Meiling held by Sichuan Changhong would
be transferred to the Company. After this transfer, the Company would hold 100% equity of
Changhong Meiling. On Mar 20th of 2008, Changhong Meiling Refrigeration finished its register
information for change in shareholder in the industry and commerce bureau. The registered
number for its business license for an enterprise as a legal person was 340107000003837. The
registered capital was RMB 20 million, Its legal representative was Li Jin. The registered place of
Changhong Meiling Refrigeration was No.111 Shimen road, Economy and Technology Industry
Park, Hefei. The main business scope was Producing, sales and R&D of appliance, electrical
products, mechanic products and relevant fittings; technology counseling for appliance and
electrical products; import and export business(operate with admission license for those projects
referring to administrative admission). In order to integrate the enterprise resources, on May 6, 2009,
the Shareholders’ General Meeting in 2009 of the Company approve the parent company of Hefei
Meiling Co., Ltd. absorbed and mergers Hefei Changhong Meiling Referigeration Co., Ltd. At
present, the absorbing and merger of Hefei Changhong Meiling Referigeration Co., Ltd. and its
procedure of logging out has not been accomplished.
3. In the report period, the change of consolidated scope in consolidated financial statements.
Name This year Last Remark
Zhongke Meiling Cryogenic
Technology Company LTD
Consolida
tion
Consoli
dation
Jiangxi Meiling Refrigeration
Co., Ltd.
Consolida
tion
Consoli
dation
Hefei Changhong Meiling
Refrigeration Co., Ltd.
Consolida
tion
Consoli
dation
Mianyang Meiling Refrigeration
Co., Ltd.
Consolida
tion
Subsidiary newly-established in this
report year
(II)Brief introduction to filiale
Mianyang Filiale of the Company (hereinafter called as Mianyang Filiale): on Aug.28, 2007, with
the resolution made in the 25th meeting of the 5th session of Board of Directors, the Company
planned to take RMB 98,800,000 to establish a producing base (filiale) which could produce 1.2
million(double shifts) environment-protected and energy-saved refrigerators annually in Sichuan
Mianyang, in order to realize rapid increase in capacity of refrigerator and thus fulfill market
demand. On Oct.29, 2007, Mianyang Filiale made its enterprise registration license in
Administration of Industry and Commerce of Sichuan Mianyang. The business license number for
an enterprise: 510700500000272; office place: No.35 of Mianxing Road of Mianyang Hi-tech
Development Zone; person in charge: Li Daijiang; business scope: manufacture and selling of
refrigerator appliances. The 15th meeting of the 6th board of directors of the Company approved to合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第55 页
log out Mianyang Filiale, and the relevant procedure is under the progress.
The 15th meeting of the 6th board of directors of the Company approved to log out Mianyang Filiale,
and its business was wholly taken by Mianyang Meiling Refrigeration Co., Ltd.
(III)Particulars about other shareholding companies
Company
Registered
capital
Holding
percentage
Initial
investment
amount
Business
scope
Mergered
or not
Huishang Bank Share
Company LTD
RMB 550
million
1.15% 5,000,000.00
Insurance
field
No
Hefei Meiling Packing
Product Company Ltd *
RMB 18.4
million
48.28% 25,055,600.00
Producing and
selling of tile
paper box
No
Meiling Sigma Electrics
Company LTD
USD1
million
20.00% 1,660,000.00
Househeld air
conditioner
No
Hefei Technology
Property Right
Transaction Company
LTD
RMB 3.5
million
28.57% 1,000,000.00
Enterprise
share right,
technical and
other property
transaction
No
* Hefei Meiling Packing Production Company LTD (hereinafter called Meiling Packing Company)
was one joint venture that was established in Dec. 1993 by Hefei Paper Box Works, Meiling Group
Company and Singapore Anda Development Company Limitd, with approval from Hefei External
Economics & Trade Committee. Its registered capital was USD 3,067,000. On Dec 30th of 2002,
Hefei External Economics & Trade Cooperation Bureau approved Hefei Paper Box Works to
transfer the 48.28% equity of Meiling Packing Company held by it to the Company by releasing the
document [HWJ (2002) No. 259]. The transaction price was RMB25,055,600. On Jul 20th of 2005,
Hefei External Economics & Trade Cooperation Bureau approved Singapore Anda Development
Company Ltd to transfer the 25% foreign capital equity of Meiling Packing Company held by it to
Meiling Group Company by releasing the document [HWJ (2005) No. 90]. The transaction price
was RMB25,055,600. after this equity transfer, Meiling Packing Company was no more a
foreign-capitaled enterprise. Instead, the Company took 48.28% equity of Meiling Packing
Company and 51.72% was held by Meiling Group Company. On August 11th, 2005, new business
license was received whose registration number was No. 3401001007135, and whose registered
capital was RMB18,400,000 and whose business scope included the production and sales of tile
paper plate, paper box, paper core, EPS, froth packing materials and aluminum foil stick tap.
VIII. Annotations of major items in consolidated financial statements
Annotation 1. Monetary fund
Book balance in year-end Book balance in year-begin
Items Currency Original
Currency
Exchange
rate
Converted into
RMB
Original
Currency
Exchange
rate
Converted into
RMB
Cash RMB -- -- 96,650.78 -- -- 38,861.09
Bank RMB -- -- 181,764,752.11 -- -- 115,976,172.90合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第56 页
USD 2,269,322.25 6.83 15,509,825.28 300,837.75 6.83 2,056,105.69
HKD 950.63 0.88 838.08 950.51 0.88 838.25
EUR 36,631.15 9.5911 351,333.02 238,034.38 9.66 2,299,174.05
JPY 211,212.00 0.07 14,973.45 211,212.00 0.08 15,978.19
GBP 21.60 11.25 243.08 35.39 9.88 349.65
deposit
Subtotal 197,641,965.02 120,348,618.73
RMB -- -- 161,139,427.68 -- -- 197,702,631.59
USD 2,038,484.08 6.83 13,927,942.83 2,238,895.94 6.8346 15,301,958.19
EUR 296,736.73 9.5911 2,846,031.65 317,041.45 9.659 3,062,303.39
GBP 0.00 0 -- 95,332.52 9.8798 941,866.23
AUD 493.93 5.43252 2,683.28 177,083.32 4.7135 834,682.22
Other
monetary
fund *
Subtotal 177,916,085.44 217,843,441.62
Total 375,654,701.24 338,230,921.44
Book balance in period-end of monetary fund has increased RMB 37,423,779.8 compared with that
of year-begin with the increase ratio of 11.06%.
* Other monetary fund mainly included guarantee fund of bank acceptance bill(Before the
acceptance bill expired or other guaranteed items expired, the other monetary fund wer restricted to
use.) and deposit in foreign exchange bank which still needed verification(under the new state
foreign exchange administration policy for 2008, the foreign payment received by the Company
should all be kept into the account waiting for verification. And it could not be used before it get
released through the verification)..
Except guarantee fund and deposit in foreign exchange bank waiting for verification no such
following funds were included in the aforementioned monetary fund: fund whose cashing procedure
could be restricted by mortgage or frozen, fund which was kept abroad and fund which could not be
callback potentially as well.
Annotation 2. Notes receivable
Item Book balance in
period-end
Book balance in
year-begin 备 Remark
Bank acceptance bill 880,425,109.69 176,893,815.75
Commercial acceptance
bill -- --
Total 880,425,109.69 176,893,815.75
(1) Ended June 30, 2009, the Company did not have undue commercial acceptance bill with
endorsement for transfer.
(2) Ened June 30, 2009, the Company did not have notes receivable for impawn.
Annotation 3. Accounts receivable
(1)Classified according to account receivable risks
Book balance in period-end Book balance in year-begin
Items
Amount Percentag
e%
Provision for
bad debt Amount Percen
tage%
Provision for
bad debt
Classification 1 79,214,199.06 19.44% 3,960,709.95 44,909,007.02 14.73 2,245,450.35合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第57 页
Classification 2 0 0 0 -- -- --
Classification 3 328,169,645.64 80.56% 36,211,136.31 259,993,860.49 85.27 20,379,094.88
Total 407,383,844.70 100.00 40,171,846.26 304,902,867.51 100.00 22,624,545.23
Book value 367,211,998.44 282,278,322.28
Classification 1 is significant account receivable of single amount (balance in period-end is over
RMB 20,000,000). Classification 2 is not significant account receivable of single amount but with
bigger risks after the combination of credit risk characteristics. Classification 3 is other insignificant
of account receivable.
(2) Classified according to account age of accounting receivable
Book Account balance in period-end Book balance in year-begin
age Amount Percentage% Provision for
bad debt Amount Percentage% Provision for
bad debt
Within 1
year 371,381,402.86 91.16 17,318,646.51 268,462,289.16 88.06 11,401,244.73
1-2 years 2,475,161.97 0.61 964,327.74 18,949,023.71 6.21 2,834,054.43
2-3 years 24,499,902.22 6.01 13,199,002.03 9,131,483.96 2.99 3,196,019.39
3-4 years 4,546,823.72 1.12 4,266,853.32 6,392,723.81 2.10 3,515,998.10
4-5years 4,270,227.38 1.05 4,212,690.12 1,934,121.93 0.63 1,644,003.64
Above 5
years 210,326.55 0.05 210,326.55 33,224.94 0.01 33,224.94
Total 407,383,844.70 100.00 40,171,846.26 304,902,867.51 100.00 22,624,545.23
Net
amount 367,211,998.44 282,278,322.28
Balance of account receivable in period-end increased RMB 102,480,977.19 compared with that in
year-begin with an increase of 33.61%; the main reasons were the sales scale of the Company in
midseason expanded and the account receivable undue within the account time had certain
increases.
Balance of account receivable in period-end did not have account holding above 5 percent
shareholders’ units of the Company
(3) The accounts receivable in the top 5 arrears are as follows:
Book balance in period-end Book balance in year-begin
Title of debtor units
Amount Percentage% Amount Percentag
e%
Total of top 5 in accounts
receivable 131,910,297.47 32.64 81,786,513.98 26.82
(4) Main debtor units of account receivable are as follows:
Title of debtor units Amount Owed
date
Owed
reason Notes
Nanjing Purchase Center of Suning
Appliance Co., Ltd.
79,214,199.06 Within 1
year
Loan for
goods
Jiangsu Five Star Appliance Co.,
Ltd. 19,918,668.95 Within 1
year
Loan for
goods
Beijing Dazhong Appliance Chain
Sale Co., Ltd.
12,626,409.14 Within 1
year
Loan for
goods
Withdraw bad
debt according to
the company’s
policy on bad debt合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第58 页
GOME Electrical Appliances
Holding Ltd.
11,783,255.84 Within 1
year
Loan for
goods
FAGORBRANDT 8,367,764.48 Within 1
year
Loan for
goods
Total 131,910,297.4
7
Taking up 2.64% in other account
receivable in period-end
(5) Special withdrawal provision of bad debt
The Company had entrusted the bank to accept the credit with the amount of USD 1,968,304.80,
EURO 791,184,72 which converted into RMB 21,071,910.64 till the end of Jun. 2009. Thus, the
Company did not withdraw the provision for bad debt for the account receivable.
Annotation 4. Account paid in advance
(1) The balance and accounting age of advance paid in advance in period-end are as follows:
Book balance in period-end Book balance in year-begin
Account age
Amount Percentage% Amount Percentag
e%
Within 1 year 83,410,931.06 96.32 131,748,743.44 97.64
1-2 years 74,093.29 0.01 10,528.72 0.01
2-3 years 474,141.41 0.55 474,141.41 0.35
Above 3 years 2,704,821.09 3.12 2,704,821.09 2.00
Total 86,663,986.85 100.00 134,938,234.66 100.00
The book balance paid in advance in period-end has decreasd RMB 482,742,478,100 with the
decrease proportion of 35.78% compared to the book balance in year-begin.
(2) The total amount paid in advance of the top 5 in the book balance of advance paid in advance in
period-end is RMB 317,784,083,400, accounting for 36.66% of amount paid in advance in
period-end.
(3) Balance of account paid in advance in period-end did not have account paid in advance holding
above 5 percent (including 5%) shareholders’ units of the Company.
Annotation 5: Other receivable
(1) Classified according to account age
Book Account balance in period-end Book balance in year-begin
age Amount Percentage% Provision for
bad debt Amount Percentage% Provision for
bad debt
Within
1 year 23,857,564.67 83.19% 1,160,155.18 37,024,187.12 78.41% 1,817,973.70
1-2
years 166,173.33 0.58% 15,926.00 5,557,895.90 11.77% 829,784.39
2-3
years 287,056.60 1.00% 92,186.15 164,738.08 0.35% 49,374.67
3-4
years 2,189,766.93 7.64% 2,137,256.43 2,301,075.05 4.87% 2,198,475.90
4-5years 324,916.69 1.13% 276,179.19 323,148.72 0.68% 274,676.41
Above 5
years 1,852,192.81 6.46% 1,852,192.80 1,848,254.69 3.91% 1,848,254.69
Total 28,677,671.03 100.00% 5,533,895.75 47,219,299.56 100.00% 7,018,539.76合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第59 页
Net
amount 23,143,775.28 40,200,759.80
The other balance receivable in period-end has decreased RMB 1,854,16,285,300 with the decrease
proportion of 39.27% compared to the balance in year-begin, which is mainly due to that the
company optimized process and strengthened management of other receivable.
(2)Classified according to risks
Classification 1 is significant account receivable of single amount (the balance in period-end is over
RMB 1,000,000). Classification 2 is not significant account receivable of single amount but with
bigger risks after the combination of credit risk characteristics. Classification 3 is other insignificant
account receivable.
(3) Total arrearage of the top 5 in other accounts receivable at the end of the term is as follows:
Book balance in period-end Book balance in year-begin
Total of the top 5 Amount Percentage% Amount Percentage%
6,996,743.63 24.40% 14,087,185.18 29.83%
(
4)Main debtor units of other account receivable at the end of the term are as follows:
Title of debtor
units Amount Owed
date
Owed
reason
Provision
for bad
debt
Reason for withdrawal of
bad debt
Reserve fund for
Hefei Branch 2,004,352.50 Within 1
year
Reserve
fund
Reserve fund for
Shenyang
Branch
1,435,255.12 Within 1
year
Reserve
fund
Withdrawal
in
proportion
Jiangxi Kesheng
Industry and
Trade Co., Ltd.
2,073,076.93 3-4 years Loan for
goods
Withdrawal
in full
amount
Carrying-over of account
receivable, the difficulties
of account recovery and
withdrawal in full
amount of provision for
bad debt
Reserve fund for
Beijing Branch 771,102.48 Within 1
year
Reserve
fund
Reserve fund for
Jinan Branch 712,956.60 Within 1
year
Reserve
fund
Withdrawal
in
proportion
Book balance in period-end Book balance in year-begin
Items
Amount Percen
tage%
Provision for
bad debt Amount Percent
age%
Provision
for bad debt
Classification 1 3,439,607.62 11.99% 171,980.38 21,904,067.99 46.39% 2,641,396.48
Classification 2 2,405,856.33 8.39% 2,405,856.33 2,405,856.33 5.10% 2,254,457.87
Classification 3 22,832,207.08 79.62% 2,956,059.04 22,909,375.24 48.52% 2,122,685.41
Total 28,677,671.03 100% 5,533,895.75 47,219,299.56 100% 7,018,539.76
Book value 23,143,775.28 40,200,759.80合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第60 页
Total 6,996,743.63 Taking up 24.40% in other account receivable in period-end
(5)Special provision for withdrawing bad debt
Due to that some current units owed a longer time, and they had difficulties in paying the owed debt
in previous years. After liquidating the historical debt, provision for the withdrawal of 100 percent
bad debt for the following units:
Unit Book balance Owed
date
Owed
reason
Withdrawal
proportion Reason
Jiangxi Kesheng
Industry and Trade
Co., Ltd.
2,073,076.93 3-4
years
Loan
for
goods
100%
Carrying-over of
account receivable, the
difficulties of account
recovery and
Withdrawal in full
amount of provision for
bad debt
Annotation 6: Inventory
(1) The list of inventory classified according to kinds was as follows:
Item Amount in
year-begin
Amount
increased in this
period
Amount
decreased in this
period
Book balance in
period-end
Raw material 60,311,332.74 1,552,434,378.46 1,550,427,202.49 62,318,508.71
Entrusted process
materials - - - -
Inventory
merchandise 399,486,918.08 1,750,519,644.23 1,944,072,306.75 205,934,255.56
Low value
consumable articles 4,181,435.08 12,216,753.16 11,580,897.77 4,817,290.47
Goods in transit 87,025,922.02 2,181,033,570.78 2,156,753,151.60 111,306,341.20
Goods-in-process 21,381,591.91 1,808,333,859.46 1,797,987,541.66 31,727,909.71
Materials purchase - - - -
Development cost - - - -
Mould expense to
be apportioned 9,651,478.60 18,554,149.60 11,222,457.35 16,983,170.85
Total 582,038,678.43 7,323,092,355.69 7,472,043,557.62 433,087,476.50
The inventory in period-end has decreased RMB 1,489,512,019,300 with the decrease proportion of
25.59%, which is mainly due to that the company stengthened production and sales, increased the
fulfillment rate of orders and optimized inventories.
(2) Provision for inventory depreciation
Amount decreased in this
Item Book balance period
in year-begin
Amount for
withdrwal of
this period Switch-ba
ck Transfer-out
Book balance in
period-end Notes
Raw
material 1,059,300.55 -- -- -- 1,059,300.55
Inventory
merchand
ise
42,936,300.67 0 0 -- 42,936,300.67
Calculate and
draw
proportionally
in accordance
with the rank
and age of
account of
inventories
Total 43,995,601.22 0 -- -- 43,995,601.22合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第61 页
(3) Net value of inventory
Net value of
inventory Net value in period-end Net value in year-begin
Raw material 61,259,208.16 59,252,032.19
Entrusted process
materials － -
Inventory
merchandise 162,997,954.89 356,550,617.41
Low value
consumable articles 4,817,290.47 4,181,435.08
Goods in transit 111,306,341.20 87,025,922.02
Goods-in-process 31,727,909.71 21,381,591.91
Materials purchase 0 -
Development cost 0 -
Mould expense to
be apportioned 16,983,170.85 9,651,478.60
Total 389,091,875.28 538,043,077.21
(4) Capitalized amount of borrowings: naught.
(5) Pledge provided for inventory in this period-end: naught.
Annotation 7: Financial assets available for sale
Fair value in period-end Fair value in year-begin
Item
cost Fluctuation of
Fair value cost Fluctuation of
Fair value
1.Bond available for sale -- -- -- --
2.Equity instrument
available for sale 18,789,164.85 209,913,350.13 19,540,000.00 146,680,000.00
3.Others -- --
Total 18,789,164.85 209,913,350.13 19,540,000.00 146,680,000.00
In according to the Article 42 in Company Law, 6,600,000 shares of Anhui USTC iFLYTEK Co.,
Ltd.(stock code 002230, hereinafter refers to as iFLYTEK) held by the Company have listed for
tade after May 12, 2009, before they belonged to restricted tradable shares. On May 22, 2009,
iFLYTEK took cash dividend distribution for 2008 and capitalization of share capital based on the
registered shareholders after the stock trade closed (for details, refers to the relevant notice made by
iFLYTEK). Before cash dividend and capitalization of share capital, the Company increased to hold
211,500 shares of iFLYTEK. Based on the capitalization of share capital scheme, the Company
obtained 3,194,250 capitalized shares. Ended as June 2009, the Company actually held 9,507,950
shares of iFLYTEK.
1,000,000 shares of China Pacific (Group) Insurance Co., Ltd. (stock code: 601601, hereinafter
refers to as China Pacific Insurance) held by the Company have listed for tade on Dec. 26, 2008,
before they belonged to restricted tradable shares. Ended as June 30, 2009, the Company did not
decrease to hold shares of China Pacific Insurance.
According to the related regulations of the Expanlation of Accounting Standard for Business
Enterprises No. 1 and Opinion Presented by Professional Work Team on Execution of Accounting
Standard for Business Enterprises No. 3 of the Department of Treasury [Account (2007) No. 14] :
the enterprises who held restricted circulating shares of listed company but did not control,合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第62 页
co-control or made significant effects, should divide restricted equity as finance assets available for
sale according to the regulations of Accounting Standard for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments. And the gains and losses of the formation
of fluctuation of fair value charged to capital surplus.
On June 30, 2009, the closing price of tradable shares of Anhui USTC iFLYTEK Co., Ltd. was
RMB 21.70 per share, the fair value was RMB 206,322,514.98; on June 30, 2009, the closing price
of tradable shares of China Pacific (Group) Insurance Co., Ltd. was RMB 22.38 per share, the fair
value was RMB 22,380,000.00.
Annotation 8: Long-term equity investments
Item Book balance
in year-begin
Increase in this
period
Decrease in
this period
Book balance
in period-end
Long-term equity
investment 33,718,769.12 146,972.66 33,865,741.78
Less: impairment for
long-term equity investment 1,660,000.00 -- -- 1,660,000.00
Net value of long-term
equity investment 32,058,769.12 146,972.66 32,205,741.78
(1) Classification of long-term equity investment
Book balance in
year-begin
Book balance in
period-end
Item
Amount
Provision
for
depreciation
Increase
in this
period
Decrease in
this period Amount
Provision
for
depreciation
Investment in
subsidiary
-- -- -- -- -- --
Investment in joint
ventures and
co-operative
enterprise
-- -- -- -- -- --
Investment in joint
owned enterprise
27,058,769.12 -- 146,972.66 27,205,741.78
Investment in other
enterprise
6,660,000.00 1,660,000.00 6,660,000.00 1,660,000.00
Including:
investment on stock
-- --
Other equity
investment
6,660,000.00 1,660,000.00 6,660,000.00 1,660,000.00
Total 33,718,769.12 1,660,000.00 146,972.66 33,865,741.78 1,660,000.00
Book value of
long-term investment
32,058,769.12 32,205,741.78
Long-term equity investment increased RMB 146,972.66 in the report period, which was all the
increased amount invested on joint and cooperative enterprise based on equity method, in which
RMB 127,291.99 was the enjoyable share calculated based on net profit realized in the report period
by Heifei Technology Property Exchange, and RMB 19,680.67 was the enjoyable share calculated
based on net profit realized in the report period by Meiling Packing Co., Ltd.
(2) Particulars about long-term equity investment
Invested Unit
Relations
hip with
the parent
company
Proportion
of invested
amount（%）
Invest
limit
Calculat
ion
method
Book
amount in
period-end
Provision for
depreciation合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第63 页
Huishang Bank Co., Ltd -- 1.15 Long-ter
m
Cost
method 5,000,000.00 --
Meiling Sigma Appliance
Co., Ltd -- 20.00 15 years Cost
method 1,660,000.00 1,660,000.00
Heifei Technological
Property Exchange
Joint
owned 28.57 Long-ter
m
Equity
method 2,420,223.52 --
Hefei Meiling Packing Co.,
Ltd
Joint
owned 48.28 Long-ter
m
Equity
method
24,785,518.2
6 --
Total 33,865,741.
78 1,660,000.00
(3)Investment in joint owned enterprise Unit: RMB’0000
Invested Unit Register
ed place
Book balance in
period -end
Amount occurred in
this period
Prop
ortio
n for
share
-hold
ing
Proporti
on for
vote
right
Total
assets
Total
liabilities
Operatin
g
income
Net profit
Heifei
Technological
Property Exchange
Hefei 28.5
7% 28.57% 11874.5 11063.5 14.08 44.5
Hefei Meiling
Packing Co., Ltd Hefei 48.2
8% 48.28% 13026.3 7892.6 4440.4 4..0
(4) Increase or decrease in long-term equity investment:
Invested unit
Initial
investment
amount
Balance in
year-begin
Increase or
decrease in
this period
Accumulated
equity
adjustment
Balance in
period-end
Heifei Technological
Property Exchange 1,000,000.00 2,292,931.53 127,291.99 1,420,223.52 2,420,223.52
Hefei Meiling Packing
Co., Ltd
25,055,600.0
0 24,765,837.59 19,680.67 -270081.74 24,785,518.26
Huishang Bank Co., Ltd 5,000,000.00 5,000,000.00 -- -- 5,000,000.00
Meiling Sigma Appliance
Co., Ltd 1,660,000.00 1,660,000.00 -- -- 1,660,000.00
Total 32,715,600.0
0
33,718,769.12 146,972.66 1,150,141.78 33,865,741.78
(5) Provision for depreciation of long-term equity investment:
Invested unit
Book balance
in
year-begin
Increase
in this
period
Decrease
in this
period
Balance in
period-end Notes
Meiling Sigma
Appliance Co., Ltd 1,660,000.00 -- -- 1,660,000.00 Operation
suspension
Annotation 9: Investment real estate
Item
Book balance
in
year-begin
Increase in
this period
Decrease
in this
period
Book balance
in
period-end
I: total of original price合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第64 页
1.Houses and buildings 5,511,485.56 9,616,429.72 -- 15,127,915.28
2. Land Use Right -- -- -- --
II: total of accumulated depreciation
and accumulated amortization
1. Houses and buildings 1,429,300.28 533,318.85 -- 1,962,619.13
2. Land Use Right -- -- -- --
III: total of accumulated amount of
provision for depreciation of
investment real estate
1. Houses and buildings -- -- -- --
2. Land Use Right -- -- -- --
IV: total book value of investment
real estate
1.Houses and buildings 4,082,185.28 13,165,296.15
2. Land Use Right -- -- -- --
Annotation 10: Fixed asset and accumulated depreciation
Item Book balance in
year-begin
Increase in this
period
Decrease in
this period
Book balance in
period-end
1. Original value
Houses and buildings 272,912,711.22 1,465,951.78 9,616,429.72 264,762,233.28
Special equipment 656,867,138.18 3,509,111.98 82,364.33 660,293,885.83
Transport equipment 22,829,013.62 1,351,651.15 161,109.56 24,019,555.21
Others 25,202,652.72 13,728,950.59 2,438,098.96 36,493,504.35
Total 977,811,515.74 20,055,665.50 12,298,002.57 985,569,178.67
2.Accumulated
depreciation
Houses and buildings 24,827,869.13 33,636.20 3,291,302.08 21,570,203.25
Special equipment 251,887,669.91 31,723,067.23 79,069.76 283,531,667.38
Transport equipment 11,024,946.75 1,225,436.28 154,665.18 12,095,717.85
Others 9,831,159.90 1,689,811.64 1,324,455.76 10,196,515.78
Total 297,571,645.69 34,671,951.35 4,849,492.78 327,394,104.26
3. Net value 680,239,870.05 658,175,074.41
4. Depreciation reserve
of fixed asset
Houses and buildings 950,000.00 - - 950,000.00
Special equipment 9,678,678.15 - - 9,678,678.15
Transport equipment 596,067.96 - - 596,067.96
Others 1,783,299.63 - 7,116.99 1,776,182.64
Total 13,008,045.74 - 7,116.99 13,000,928.75
5. Book value of fixed
asset合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第65 页
Houses and buildings 247,134,842.09 242,242,030.03
Special equipment 395,300,790.12 367,083,540.30
Transport equipment 11,207,998.91 11,327,769.40
Others 13,588,193.19 24,520,805.93
Total 667,231,824.31 645,174,145.66
Particulars about the fixed asset for pledge are as follows:
Name of houses Property ownership certificate Original value Net value Pledge unit
Mold Company Property Ownership Right
(FD)No. 007761 5,200,216.00 4,521,367.60 Communication
Bank
Freezer factory Property Ownership Right
(FD)No. 028134 8,686,682.09 6,008,850.58 Hefei Branch of
Citic Bank
Workshop
factory for
preparation
Property Ownership Right
(FD)No. 028130 2,700,875.74 1,854,720.99 Hefei Branch of
Citic Bank
Workshop Property Ownership Right
(FD)No. 028131 1,223,777.68 985,638.96 Hefei Branch of
Citic Bank
Office building
with freezer
factory
Property Ownership Right
(FD)No. 028133 1,168,591.33 938,201.62 Hefei Branch of
Citic Bank
Sheet metal
workshop
Property Ownership Right
(FD)No. 028132 2,289,662.37 1,689,472.61 Hefei Branch of
Citic Bank
Crusher
workshop
Property Ownership Right
(FD)No. 028284 242,232.00 217,819.04 Ministry of Finance
of Hefe
Switchboard
room
Property Ownership Right
(FD)No. 028278 88,970.00 84,383.09 Ministry of Finance
of Hefei
Workshop Property Ownership Right
(FD)No. 028283 2,796,137.00 2,430,256.06 Ministry of Finance
of Hefei
Transformer
plant
Property Ownership Right
(FD)No. 028273 12,055.47 7,958.75 Ministry of Finance
of Hefei
Air-Compressor
workshop
Property Ownership Right
(FD)No. 028282 231,928.00 9,277.12 Ministry of Finance
of Hefei
Center
storehouse
Property Ownership Right
(FD)No. 028285 22,228,826.09 14,720,776.60 Huishang Big
East-gate
Property in
Hi-Tec
Development
Zone
HGY No. 0121 28,603,502.82 24,666,568.04 Luyang Branch of
Construction Bank
Total 75,473,456.59 58,135,291.06
Annotation 11: Construction in progress
Item Amount in
year-begin
Increase in
this period
Amount
transferred
into fixed
asset in this
period
Other
decrease
Amount in
period-end
Capit
al
sourc
e
Progr
ess
1. Original value of
construction in process
New ERP 3,872,528.08 296,963.00 4,169,491.08 0 0.00 Self-r
aised
Phase II of Changhong
Meiling industry park 38,228,550.03 856,496.87 5,845,130.96 0 33,239,915.94 Self-r
aised 90%
PDM 1,860,958.95 858,006.00 2,718,964.95 0 0.00 Self-r
aised合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第66 页
Project of expense of
phase I of Meiling codes
system (products, raw
material)
4,103,711.89 640,313.28 4,744,025.17 0 0.00 Self-r
aised
Construction and
installment project of
Mianyang branch
11,627,359.19 0 0 0 11,627,359.19 Self-r
aised 90%
Others 446,153.83 17,613,569.85 2,530,813.10 0 15,528,910.58 60%
Total of original value 60,139,261.97 20,265,349.00 20,008,425.26 0.00 60,396,185.71
2. Provision for
depreciation of
construction in process:
-- -- -- --
3. Net value of
construction in process 60,139,261.97 60,396,185.71
The capitalized interest amount in the book balance of construction in process in period-end is
RMB 7,231,421,900.
Annotation 12: Disposal of fixed assets
Item Book balance in
year-begin
Increase in this
period
Decrease in this
period
Book balance in
period-end
House movement
Transferred to disposal
157,908,608.46 157,908,608.46
Losses occurred in
movement
108,163,629.91 2,147,713.38 1,087,188.03 109,224,155.26
Land which is taken
back for reserve
transferred to disposal
78,044,738.24 78,044,738.24
Construction in
process transferred to
disposal
13,699,198.73 13,699,198.73
Discarded as useless -- --
Others 196,948.46 31,441.51 20,186.75 208,203.22
Total 358,013,123.80 359,084,903.91
In line with the relevant regulations of No.89 file of Hefei government and the sprit of relevant
governmental meetings, the Company reaches Agreement of Taking back the Use Right of
State-owned Land with Land Reserve Center, Land Reserve Center agreed that Land Reserve
Center took back totally 119,400 square meters land located in No.33 and No. 48, Wuhu Road
which was owned by the Company before, and within six months after transaction, Hefei Financial
Department paid compensation (including dismantling, removing, allocating, ect.) for taking back
the land to the Company, which would be calculated as 65% of the total amount deducting deed tax
and the bank interests (including estimation fee) of loan that Hefei Land Reserve Center mortgage
the land. Besides, the Agreement also promises that Land Reserve Center should actively promote
this land and try to well activate the land assets as soon as possible, and if the final deal price is over
RMB 0.6 billion and unit price is respectively over RMB 4 million/acre, RMB 5 million/acre and
RMB 6 million/acre, Land Reserve Center would respectively withdraw 10%, 30% and 50% of the
relevant excessed part. After withdrawing, then calculate the compensation and government income
as aforesaid promises.
*Increases in the report period: mainly House Removal Company retreated guarantee fund of RMB合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第67 页
2 million for dismantling assets in former plan( reckoned into the account for general calculation
while drawing in last year), the residual was the dismantling expense of former plant.
*Decreases in the report period: mainly RMB 1,053,000 was the bank deposite taken back from the
auction of scrap and old assets in former plant; RMB 34,188.03 was the amount which was renewly
transferred-into fixed asset after the dismantling and renovation of D-line measurement room.
Annotation 13: Intangible assets
Item Book balance
in year-begin
Increase in
this period
Decrease
in this
period
Book balance
in period-end
Limit for
the rest
amortization
1. Original value -
(1) Right of use of land 549,909,818.75 -- -- 549,909,818.75 37-45 years
(2) Trademark special right 73,711,036.84 -- -- 73,711,036.84 3 years
(3) New mixed-refrigerant
technology in producing
throttling, refrigerating and
cryogenic refrigerator
9,000,000.00 -- -- 9,000,000.00 1.5 years
Total 632,620,855.59 -- -- 632,620,855.59 --
2. Accumulated
amortization -- -- --
(1) Right of use of land 23,101,829.39 5,741,858.39 -- 28,843,687.78 --
(2) Trademark special right 26,015,660.06 6,503,915.02 -- 32,519,575.08 --
(3) New mixed-refrigerant
technology in producing
throttling, refrigerating and
cryogenic refrigerator
4,500,000.00 1,125,000.00 -- 5,625,000.00 --
Total 53,617,489.45 13,370,773.41 -- 66,988,262.86 --
3. Accumulated
depreciation reserve -- -- -- -- --
(1) Right of use of land -- -- -- -- --
(2) Trademark special right -- -- -- -- --
(3) New mixed-refrigerant
technology in producing
throttling, refrigerating and
cryogenic refrigerator
-- -- -- -- --
Total -- -- -- -- --
4. Book value -- -- -- -- --
(1) Right of use of land 526,807,989.36 -- -- 521,066,130.97 --
(2) Trademark special right 47,695,376.78 -- -- 41,191,461.76 --
(3) New mixed-refrigerant
technology in producing
throttling, refrigerating and
cryogenic refrigerator
4,500,000.00 -- -- 3,375,000.00 -
Total 579,003,366.14 -- -- 565,632,592.73 --
(1)In 2004, the Company took account receivable for change of the land in Meiling Group
Company Development Zone; on Dec. 31st of 2005, Meiling Group Company and Meiling Washer
Company used the right of land use in their development zone to commute the debts they owed to
the Company. The relevant transfer procedure for the certificates for the right of use of the land has
been finished. And the certificate numbers for the two certificates for right of use of the state-owned
land are respectively HGY (2007) No. 061 and HGY (2007) No. 076.
(2) The trademark special right is obtained through the transfer from Meiling Group Company in
2002.
(3) The new mixed-refrigerant technology in throttling and refrigerating and its application research合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第68 页
in cryogenic reserve box is an intangible asset devoted to China-tech Meiling Freezer Technology
Co. Ltd. by Technical Institute of Physics and Chemistry in Chinese Academy of Science. Its value
is RMB 18,000,000 which takes 30% of the equity of China-tech Meiling Freezer Technology Co.
Ltd. The agreement regulates that the limit term is 8 years
Particulars about the pledge of intangible asset:
Intangible asset Land certificate number
Area of
property
right（M2）
Net book value Note
Meiling Industry Park in
Section A of Longgang
Industry Zone
DGY (2002) No. 0257 10,560.00
Communication
Bank of Hefei
Branch
Meiling Industry Park in
Section A of Longgang
Industry Zone
DGY (2002) No. 0259 5,015.00
Communication
Bank of Hefei
Branch
Meiling Industry Park in
Section A of Longgang
Industry Zone
DGY (2004) No. 0200 105,121.71
31,549,500.76
CITIC Bank of
Hefei Branch
Land use right of
Economic Development
Zone
HGY (2007) No. 061 477,550.00 320,790,430.23
Industry and
Commercial
Bank of China of
Big East Gate
Branch
Total 352,339,930.99
Annotation 14: Deferred income tax assets
Item Book balance in
period-end
Book balance in
year-begin
Deferred income tax asset 15,330,709.75 12,980,747.10
Annotation 15: Assets depreciation reserve
Decrease in this period
Item Book balance
in year-begin
Increase in
this period Transfer-in Transfer
-out
Book balance in
period-end
1. Provision for bad debt 29,643,084.99 16,062,657.02 - - 45,705,742.01
2. Inventory falling price reserves 43,995,601.22 - - 43,995,601.22
3. Depreciation reserve for
financial asset available for sale - -
4. Depreciation reserve for
held-to-maturity investment - -
5. Depreciation reserve for
long-term equity investment 1,660,000.00 1,660,000.00
6. Depreciation reserve for
investment of real estate - -
7. Depreciation reserve for fixed
asset 13,008,045.74 7,116.99 13,000,928.75
8. Depreciation reserve for project
material - -
9. Depreciation reserve for
construction in process - -
10. Depreciation reserve for
capitalized biological asset - -
11. Depreciation reserve for oil
and gas asset - -
12. Depreciation reserve for
intangible asset - -
13. Depreciation reserve for - -合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第69 页
goodwill
14. Others - -
Total 88,306,731.95 16,062,657.02 - 7,116.99 104,362,271.98
Annotation 16. Asset with ownership restricted
For details, please refer to the Appendix8, Annotation1-Monetary Fund, Annotation10- Fixed Asset
and Annotation13-Intangible Asset.
Annotation 17. Short-term loans
(1) Kinds of loans
Loan condition Book balance at
period-end
Book balance at
year-begin Note
Loan in mortgage 87,000,000.00 162,000,000.00
Mortgage with house property
and land use right
Loan in assurance 320,000,000.00 165,000,000.00
The Company guaranteed for
Zhongke Meiling with RMB
20,000,000 and the rest is
guaranteed by Changhong
Group for the Company
Loan in bill purchase 1,795,307.70 9,427,193.11
Total 408,795,307.70 336,427,193.11
(2) Currency for loans
Loan condition US. Dollars Euro Japanese
Yuan RMB Total
Loan in mortgage * -- -- -- 87,000,000.00 87,000,000.00
Loan in assurance ** -- -- -- 320,000,000.00 320,000,000.00
Loan in bill purchase
*** 262,856.17 -- 1,795,307.70
Total 0 0 407,000,000.00 408,795,307.70
Exchange rate at
period-end 6.8325 0 -- -- --
RMB converted into 1,795,307.70 0 --
*Details for the loans in mortgage:
Number Bank Amount The term of loan
Annual
interest
rate（%）
Purpose for the
loan
1
Industry and
Commercial Bank of
Changjiang East
Road Branch
19,000,000.00 2009.02.27--2009.08.26 4.86 Purchasing raw
materials
2
Industry and
Commercial Bank of
Changjiang East
Road Branch
24,000,000.00 2008.12.23--2009.10.23 5.31 Purchasing raw
materials
3
Communication
Bank of Hefei
Shouchun Road
Branch
9,000,000.00 2009.01.23--2010.01.22 5.31 Purchasing raw
materials合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第70 页
4
Construction Bank of
Luyang Branch 20,000,000.00 2009.01.09-2010.01.08 5.31 Turnover of the
current funds
5
Citic Bank of Hefei
Branch 15,000,000.00 2008.07.21--2009.07.20 6.84 Turnover of the
current funds
Total 87,000,000.00
**Details for the loans in assurance:
The balance of RMB borrowing at the period-end guaranteed by Sichuan Changhong Electric
Group Co., Ltd. for the Company is RMB300,000,000.00. The Company provided guarantee for the
borrowing of RMB 20,000,000.00 made by Zhongke Meiling.
Bank providing loan
Balance
(RMB) Loan date Repaying
date
Annual
interest
rate
Guarantor
Communication Bank of Hefei
Shouchun Road Branch 35,000,000.00 2009-2-20 2010-2-19 5.31
Communication Bank of Hefei
Shouchun Road Branch 15,000,000.00 2008-10-31 2009-10-30 5.31
Communication Bank of Hefei
Shouchun Road Branch 20,000,000.00 2009-1-5 2010-1-5 5.31
Huishang Bank of Hefei
Dadongmen Branch 14,500,000.00 2009-3-16 2010-3-15 5.31
Huishang Bank of Hefei
Dadongmen Branch 30,000,000.00 2009-4-21 2010-4-20 5.31
Huishang Bank of Hefei
Dadongmen Branch 35,500,000.00 2008-12-11 2009-12-11 5.38
Merchant Bank of Ma’anshan
Road Branch 10,000,000.00 2009-5-21 2009-11-21 5.31
Import and Export Bank of
Nanjing Branch 120,000,000.00 2009-6-25 2010-6-25 4.23
Construction Bank of Luyang
Branch 20,000,000.00 2009-1-6 2010-1-6 5.31
Sichuan
Changhong
Electric Group
Co., Ltd.
Communication Bank of Hefei
Shouchun Road Branch 20,000,000.00 2008-10-22 2009-10-22 5.31 Hefei Meiling
Co., Ltd.
Total 320,000,000.00
***Details for the loans in bill purchase:
Bank providing
loan
Balance
(USD)
Balance
(RMB) Loan date Repaying date Annual
interest rate
Communication
Bank of China 76900.00 525,419.25 2009.05.11 2009.08.10 3.10%
Communication
Bank of China 75700.00 517,220.25 2009.05.11 2009.08.10 3.10%
Communication
Bank of China 34760.00 237,497.70 2009.05.11 2009.08.10 3.10%
Communication
Bank of China 42200.00 288,331.50 2009.05.27 2009.08.26 3.10%
Communication
Bank of China 33200.00 226,839.00 2009.06.16 2009.09.15 2.40%
Subtotal 262,760.00 1,795,307.70
Bill purchased are foreign currency which would
be converted into RMB according to the
exchange rate as of period-end.
Annotation 18. Notes payable
Kinds Book balance at period-end Book balance at year-begin合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第71 页
Bank acceptance bill 448,475,008.60 471,314,822.34
Commercial acceptance bill 19,392,144.55 113,245,703.75
Total 467,867,153.15 584,560,526.09
In the note payable for end of this period, there is no bank acceptance bill which is due while not
paid.
Annotation 19. Account payable
Book balance at period-end Book balance at year-begin
Age of the account
Amount Proportion
（%） Amount Proportion（%）
Within 1 year 935,534,675.24 97.87 616,569,516.91 96.90
1-2 years 10,868,238.59 1.14 11,255,590.53 1.77
2-3 years 2,028,931.58 0.21 1,048,591.78 0.16
Above 3 years 7,481,705.12 0.78 7,414,651.57 1.17
Total 955,913,550.53 100.00 636,288,350.79 100.00
The balance of account payable at this period-end has increased RMB 319,625,199.74 compared to
that at the same period of last year with an increase rate of 50.23%. This is mainly due to the
expansion of production scale of the Company in peak season and the increase of purchase amount
not in an accounting period.
Accounts in the balance of this year-end payable to the shareholders units which hold over 5% (5%
included) equity of the Company:
Item Book balance at
period-end
Book balance at
year-begin Note
Sichuan Changhong Electric
Appliance Co., Ltd 4,208,668.31 5,053,199.18
Accounts payable in the balance of this period-end to the top 5 units totals to RMB 166,267,921.05,
taking 17.39% of the balance at the period-end.
Annotation 20. Account received in advance
The balance of account received in advance at this year-begin is RMB 319,411,065.64 and RMB
307,908,863.68 for the period-end, thus it decreased RMB 11,502,201.96 compared to that of the
year-begin with a decrease rate of 3.6%. Accounts in the balance of this period-end received in
advance from the shareholders units which hold over 5% (5% included) equity of the Company:
Item Book balance at
period-end
Book balance at
year-begin Note
Sichuan Changhong Electric
Appliance Co., Ltd 4,937,793.47 4,645,445.98
The total amount of account received in advance received from the top five units reaches at RMB
28,198,880.35, which takes 9.16% of the balance of account received in advance.
Annotation 21. Wages payable
Item Book balance
at year-begin
Increase in this
period
Decrease in
this period
Book balance
at period-end
I. Salary, bonus, allowance and
subsidy 3,293,783.38 68,429,136.15 67,416,793.28 4,306,126.25
II. Welfare for workers and staff -159,338.22 861,817.50 682,432.50 20,046.78
III. Social insurance 2,640,573.04 14,317,422.06 11,671,706.96 5,286,288.14合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第72 页
Including:
1. Medical insurance 62,497.87 3,803,556.40 3,834,327.16 31,727.11
2. Basic endowment
insurance 2,577,631.47 9,098,859.75 6,456,806.75 5,219,684.47
3. Annuity payment -- 0 0 --
4. Unemployment
insurance 443.70 859,880.20 825,447.34 34,876.56
5. Work injury insurance -- 293,809.00 293,809.00 --
6. Maternity insurance -- 261,316.71 261,316.71 --
IV. Housing accumulation fund 3,835,962.25 8,337,948.54 10,193,834.73 1,980,076.06
V. Labor union expenditure and
personnel education expense 595,171.40 20,785.22 106,648.00 509,308.62
VI. Non-monetary welfare -- 0 0 --
VII. Compensation for
cancellation of labor relationship
with employees
16,683,041.51 21,630,950.94 2,582,971.10 35,731,021.35
VIII. Others 984,713.28 203,869.00 168,439.52 1,020,142.76
Including: cash-settled
share-based payment -- 0 0 --
Total 27,873,906.64 113,801,929.41 92,822,826.09 48,853,009.96
Referring to the employee inner advance retire policy made by the Company and the resolution
made in the 29th meeting of the 5th session Board of Directors on Jan 28th of 2008, the female
employee above 45 years old and male employee above 48 can retire in advance if the Company
and themselves all agree.
The retire welfare of wages and social insurances which should be enjoyed to the retire time by the
employees who have already made inner retire procedure in January – June of 2009, amounting to
RMB 21,630,950.94, should be calculated into wages payable-retire welfare, which increased RMB
21,630,950.94 in administration expense in mid-2009.
Because the Company makes commitment that it will increase wages for inner retire employee with
the improvement of the lowest living insurance, it will make calculation on the expense of wages
and social insurance for inner retire employees according to present standard. And discount has not
been considered.
Annotation 22. Tax payable
Item Book balance
at period-end
Book balance
at year-begin Legal tax rate executed
1. Value-added tax 55,358,260.07 9,111,740.52 17%
2. Business tax 82,875.30 112,727.80
3. Enterprise income tax 1,061,977.40 -3,422,719.21 15%
4. Urban maintenance and
construction tax 4,259,971.99 2,352,413.01 5%、7%
5. House property tax 138,731.04 258,731.04
6. Land-use right tax 239,173.20 1,775,950.59
7. Educational surtax 2,436,101.68 1,352,879.41 3% of circulating tax payable and
1%for local educational surtax
8. Construction fund of
Water Conservancy
Projects 257,685.63
521,355.83 0.6‰ of the sales income of the last
year合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第73 页
9. Stamp tax 220,867.29 165,280.70
10. Vehicles and ships
usage tax - -
11. Fund for coarse
adjustment 19,802.03 98,068.30
12. Flood-control fund 210,178.48 176,481.97
13. Withholding and
paying of individual
income tax 1,727,515.19
1,113,252.14
Total 66,013,139.30 13,616,162.10
Annotation 23. Dividends payable
Shareholder units Book balance at
period-end
Book balance at
year-begin Note
Industry and Commercial
Bank of China of Hefei
Branch
170,775.00 170,775.00
Hefei Meiling Group
(Holdings) Co., Ltd 167,506.42 167,506.42
International Business
Department of Industry and
Commercial Bank of China of
Anhui Branch
153,697.50 153,697.50
Provincial Technic Import and
Export Company 153,697.50 153,697.50
Communication Bank of Hefei
Branch 153,697.50 153,697.50
Other 26 piecemeal units 588,576.50 588,576.50
Total 1,387,950.42 1,387,950.42
Annotation 24. Other payable
The balance of other payable for this year-begin is RMB 350,937,168.31, and RMB 501,520,934.92
for the period-end. It has increased RMB 150,583,766.61 compared to that of the year-begin, with
an increase rate of 42.90%. The main reason is the increase of market support expenses and sales
expenses which happened but not be reimbursed compared to that of the year-begin.
Account paid to the shareholder unit which holds above 5% of the shares of the Company in the
balance of other payable at the year-end:
Item Book balance at
period-end
Book balance at
year-begin Note
Sichuan Changhong Electric
Appliance Co., Ltd 154,501,041.41 166,495,146.21
Annotation 25 Long-term loans
Kinds of loans Book value at
period-end
Book value at
year-begin Note
Loan in mortgage * 7,040,000.00 7,040,000.00 Takes real estate as mortgage
Loan in credit * 9,158,200.00 9,158,200.00
Lending of treasury bond fund
of the Ministry of Finance of
Hefei
Loan in guarantee** 3,000,000.00 3,000,000.00
Total 19,198,200.00 19,198,200.00合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第74 页
* Particulars about time limit, interest rate and pledge of loans:
Loan bank Balance Borrowing
day
Returning
day
Annual
interest rate
Mortgage
(pledge)/
guarantor
Type
7,040,000.00 2006-11-9 2021-11-8 (1) Mortgage
5,858,200.00 2002-12-21 2017-12-20 (2) Credit
Ministry of
Finance of
Hefei
3,300,000.00 2004-12-10 2017-12-20
Rate on
one-year
deposit plus
3% (3) Credit
Total 16,198,200.00
(1) In August of 2006, the Company signed Asset Mortgage Agreement with Ministry of Finance of
Hefei. It takes five industry crusher chambers which cover an area of 2,322.98 square meters
(Details could be found in Fixed assets for mortagage in the Appendix VIII and X – Fixed assests
and accumulated depreciation) as mortgage for the Company to get the lending of treasury bond
fund which has 15-year term and worthy of RMB 7,040,000 from the Ministry of Finance of Hefei.
The time limit for the loan is from Nov.9th of 2006 to Nov. 8th of 2021. The capital on-lending
began to calculate the interest from the appreciation date Nov. 9th, 2006, which would be paid by
stages in the loan period to Ministry of Finance of Hefei by the Company. The first four years were
grace period, in which the annual interest rate was drifted from 1999 (the annual interest rate was
the annual interest rate of one year fixed deposit plus 0.3%). The interest payable in this period was
RMB 312,600.00.
(2) On Nov. 1st, 2002, the Company signed Agreement on Lending of Treasury Bond for Building
Project fund with Ministry of Finance of Hefei, which promissed that Ministry of Finance of Hefei
lending treasury bond RMB 7,160,000 of the technology reform project of nanometer preservation
material to the Company with the return time limit of 15 years. The capital on-lending began to
calculate the interest from the appreciation date Nov. 21, 2002, which would be paid by stages in
the loan period to Ministry of Finance of Hefei by the Company. The first four years were grace
period, in which the annual interest rate was drifted after year 1999 (the annual interest rate was the
annual interest rate of one year fixed deposit plus 0.3%).
(3) It was the special treasury bond capital appreciated by Ministry of Finance of Hefei for
enterprises’ information reform, received on Dec. 10th, 2004.
** On Aug. 18th, 2008, the Company signed gurantee contact with Hebei Innovetion Science and
Technology Risk Investment Co., Ltd., which provided guarantee for the loan RMB 3,000,000.00
lent from Huihang Bank Hefei Chenghuangmiao branch to Zhongke Meiling Co., Ltd. during the
period from Aug. 18th, 2008 to Aug. 18th, 2010.
Annotation 26. Projected liability
Item
Book
balance at
year-begin
Increase in
this period
Decrease in this
period
Book balance at
period-end
A ten-year guarantee for
the household electrical
appliance products going
into rural families (1)
-- 51,009,924.00 -- 51,009,924.00
Product quality bond 1,650,759.86 -- -- 1,650,759.86
Total 1,650,759.86 51,009,924.00 -- 52,660,683.86
(1) Since the promotion and implementation of the project of Household Electrical Appliances
Going into Rural Families, it have inspired rural customers’ strong desire for household electrical
appliances. But with the deep development of the project of Household Electrical Appliances Going
into Rural Familie, it has many difficulties to truly implement the project on every peasant合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第75 页
household, for which the main issue is rural customers’ worry about guarantee for after-sale service
of household appliance products. On the press conference of Ten-year Free Guarantee of
Refrigerators in Meiling Household Electrical Appliances Going into Rural Families dated on April
12th, 2009, the Company made a solemn promise to all social classes that the main components of
the refrigerators in Meiling Household Electrical Appliances Going into Rural Families will be
freely guaranteed for ten years based on the state Guarantee in Three-respects Law. This represents
an enterprise’s awareness and responsibilities of Customer’s Satisfaction, providing perfect
after-sale service for customers and lightening the burden upon customers. According to the
Principle of Accounting on Accrual Basis, the Company made a preliminary estimation for the
possible maintenance expense of products for sale in Household Electrical Appliances Going into
Rural Families as at June 30th, 2009.
Annotation 27. Deferred income tax liabilities
Item Book balance at
period-end Book balance at year-begin
Discrepency on tax payable (financial
asstes available for sale) 31,487,002.51 22,002,000.00
Book balance at period-end of deffered income tax liabilities increase RMB 9,485,002.51 compared with that at
year-begin, with the increase amplitude of 43.11%, which was due to the fair value of financial assets available
for sale held by the Company – stock of listed company improved. Details could be found in VII– Financial
Assets Available for Sale.
Annotation 28. Other non-current liabilities
Item Book balance at
period-end
Book balance at
year-begin
Deferred income* 20,172,100.00 --
*That were reward funds received in advance for promoting economic development from the Hefei
Municipal Government. In order to promote smooth and fast development of industrial economics,
the Hefei Municipal Government will reward the above-scale industrial enterprises after reducing
the increment of basis increase, whose total industrial output value and main business income in the
year of 2009 exceed that of in the year of 2008. In order to exert adequately the stimulating fuction
of the policy and relieve enterprises’ press of fund turnover, the Government will cash the reward
by means of allocating the funds in advance to the enterprises which fulfil the conditions for reward
and will calculate the total amount at the end of the year on an objective basis, retreating more
filling less.
Annotation 29. Share capital
Book balance at
year-begin Increase or decrease in this change（+, -） Book balance at
period-end
Item
Amount Proporti
on
Allott
ed
share
Bon
us
share
Capitalizati
on of
surplus
reserve
Transfer Sub-total Amount Proportio
n
I. Shares with
conditional subscription 113,816,066 27.52% 113,816,066 27.52%
1. State-owned shares 70,845,677 17.13% +32,078,846+32,078,846 102,924,523 24.89%
2. State-owned legal
person’s shares 32,078,846 7.76% -32,078,846 -32,078,846 0 0
3. Other domestic shares 10,891,543 2.63% 10,891,543 2.63%合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第76 页
Including: Domestic
non-state-owned legal
’ h
10,814,973 2.61% 10,814,973 2.61%
Domestic natural
person’s shares 76,570 0.02% 76,570 0.02%
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
II. Shares with
unconditional
b i ti
299,826,883 72.48% 299,826,883 72.48%
1. RMB common shares 186,726,883 45.14% 186,726,883 45.14%
2. Domestically listed
foreign shares 113,100,000 27.34% 113,100,000 27.34%
3. Overseas listed
foreign shares
4. Others
III. Total shares 413,642,949 100.00% 413,642,949 100.00%
For details of equity transfer and share merger reform, please refer to the Annotations I-Brief
Introduction of the Company.
Annotation 30. Capital reserve
Item Book balance at
year-begin
Increase in this
period
Decrease in this
period
Book balance at
period-end
Share premium 528,409,519.89 -- -- 528,409,519.89
Other capital
reserve 172,758,558.83 60,697,869,29 6,949,521.67 226,506,906.45
Total 701,168,078.72 60,697,869,29 6,949,521.67 754,916,426.34
The increase of capital reserve of this report period is come from Suggestion of Expert Working
Team on Implementation of Accounting Standard of Enterprise on Jan. 21, 2008., in which it tells
that enterprise which holds restricted shares of listed company and has no control, common control
and material influence over listed company, the restricted equity should be written into financial
assets available for sale according to Accounting Standard for Enterprise No.22-Confirm and
Measure of Financial Instrument. The Company confirmed the restricted equity of iFLYTEK and
China Pacific Insurance, two listed compaines held by the Company, as financial assets available
for sale according to their fair value with the closing price of stock exchange as June 30, 2008.
Pursuant to Accounting Standard for Enterprise and Explanation on Accounting Standard for
Enterprise promulgated by the Ministry of Finance, the balance between fair value and original
book value, also called as gains from change of fair value, should be directly recorded into other
capital reserve. Details could be found in Annonation 7 – Financial Assets Available for Sale in
VIII.
Short form of stock (code of
stock)
Fair value of
period-end
Original book
value
Gains from change of fair
value (including income tax)
Anhui Ustc Iflytek Co., Ltd.
(002230) 206,322,514.98 18,209,164.85 188,113,350.13
China Pacific Insurance
(Group) Co., Ltd. (601601) 22,380,000.00 580,000.00 21,800,000.00
Total 228,702,514.98 18,789,164.85 209,913,350.13
The decrease of capital reserve in this period was due to the decrease holding of the financial assets
available for sale – written back on the change of fair value of stock of listed company合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第77 页
Annotation 31. Surplus reserves
Item Book balance at
year-begin
Increase in this
period
Decrease in this
period
Book balance at
period-end
Statutory surplus
reserve
131,070,299.39 131,070,299.39
Free surplus reserve 153,819,249.12 153,819,249.12
Total 284,889,548.51 284,889,548.51
Annotation 32. Undistributed profit
Item Amount occurred in this
period
Amount occurred in
last period
1. Net profit 29,396,167.90 14,209,912.59
Net profit distributable to owners of parent
company 30,381,054.02 14,184,663.42
Minority shareholder’s gains and losses -984,886.12 25,249.17
Plus: undistributed profit at year-begin -339,469,536.64 -365,148,528.22
2. Profit available for distribution of parent
company
-309,088,482.62 -350,963,864.80
Less: Withdrawal of statutory surplus
reserves and Withdrawal of legal public welfare
funds
--
3. Profit available for distribution for investors -309,088,482.62 -350,963,864.80
Less: Withdrawal arbitrary surplus reserves --
Common stock dividends payable --
Common stock dividends change to
share capital --
4. Undistributed profit -309,088,482.62 -350,963,864.80
Annotation 33. Minority shareholder’s equity
Minority shareholder’s equity distributable to the minority shareholders of subsidiary company:
Unit Book balance at
period-end
Book balance at
year-begin
Zhongke Meiling Low-TemperatureTechnology
Co., Ltd. 15,806,427.96 16,754,404.02
Jiangxi Meiling Refrigerating Co., Ltd -59,647.14 -24,317.71
Mianyang Meiling Refrigerating Co., Ltd -1,580.63 --
Total 15,745,200.19 16,730,086.31
Annotation 34. Operating income and operating cost
Amount occurred in this period Amount occurred in last period
Item Operating
income
Operating cost
Gross
profit
margin
Operating
income
Operating cost
Gross
profit
margin
1.Main
business
2,430,449,128.8
3
1,715,864,650.0
9
29.40
%
2,228,737,355.1
2
1,683,535,905.6
3
24.46
%合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第78 页
Refrigerator,
freezer
2,426,257,410.0
5
1,711,464,315.3
7
29.46
%
2,209,684,032.8
6
1,664,301,617.1
2
24.68
%
(1)domestic
sales
2,222,809,206.4
3
1,529,176,710.3
7
31.21
%
1,947,935,580.1
1
1,402,882,904.4
8
27.98
%
(2)foreign
sales 203,448,203.62 182,287,605.00
10.40
% 261,748,452.75 261,418,712.64 0.13%
Air
conditioner 4,191,718.78 4,400,334.72 -4.98% 19,053,322.26 19,234,288.51 -0.95%
(1)domestic
sales 4,191,718.78 4,400,334.72 -4.98% 19,053,322.26 19,234,288.51 -0.95%
2. Other
business
income 131,991,726.61 123,251,489.33 6.62% 264,460,112.62 250,447,818.63 5.30%
(1)selling
raw
material 130,765,231.65 123,019,671.37 5.92% 264,069,030.03 250,375,113.29 5.19%
(2)rental
income 1,063,220.00 231,817.96
78.20
% 255,136.00 70,468.77
72.38
%
(3)other
income 163274.96 0 0.00% 135,946.59 2,236.57
98.35
%
Total 2,562,440,855.4
4
1,839,116,139.4
2
28.23
%
2,493,197,467.7
4
1,933,983,724.2
6
22.43
%
The total sale income from the top five customers in this period amounts to RMB 319,217,022.90
which takes 13.13% of the main business income and 12.46% of the operating income.
The gross rate in this period 28.23% increased 5.8 percentage points compared with that of the same
period of last year 22.43%, which was due to the decrease of the raw material price, the adjustment
and optimization of product structure and the strategy of reducing cost.
Annotation 35. Business tax and extra charges
Amount of this period Amount of the same period of last
Item year
Tax rate Amount Tax rate
Business tax 5% 32,925.30 5% 22,987.84
City construction
tax 5%-7% 11,753,564.03 5%-7% 4,211,123.93
Extra charge for
education 3%, Local extra 1% 6,733,035.46 3%, Local extra
1%1% 2,616,119.59
Total 18,519,524.79 6,850,231.36
Annotation 36. Operation expense
Sales expense in this period was RMB 578,917,762.91, which increased RMB 139,043,711.49
compared with that of the same period of last year RMB 439,874,051.42, with the rate of 31.61%.
The main reason was that the Company further subdivided the market, expanded the channel and
network, and improved marketing effort in order to face the economic crisis and layout Household
Electrical Appliances Going into Rural Families, so the market support expenses, related man
power expenses, vehicle oil expneses, logistic and storage expenses increased and the estimation
expense for Ten-year Free Guarantee of Refrigerators in Meiling Household Electrical Appliances
Going into Rural Families occured.
Main Item Current amount
Amount of the same
period pf last year
Amount increased
Proportion
changed合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第79 页
Sale expense 578,917,762.91 439,874,051.42 139,043,711.49 31.61%
Annotation 37. Administration expense
The amount of administration expense of this period is RMB 81,1780,269.07, which increased RMB
17,274,812.56 compared with that of the same period of last year RMB 63,895,456.51, with the 27.04% increase.
The main reason was the withdrawal of the retire welfare of wages and social insurances which should be enjoyed
to the retire time by the newly added employees who have already made inner retire procedure.
Main Item Current amount
Amount of the
same period pf last
year
Amount increased Proportion
changed
Administration
expense 81,1780,269.07 63,895,456.51 17,274,812.56 27.04%
Annotation 38. Financial expense
Item Current amount Amount of the same
period pf last year
Interest expenditure 12,268,220.00 25,621,138.32
Less：Interest income 1,523,677.04 2,397,444.12
Foreign exchange gains and losses 532,964.69 548,327.14
Other 1,530,797.29 2,929,483.93
Total 12,808,304.94 26,701,505.27
The current amount of financial expense is RMB 12,808,304.94 which decreased RMB
13,893,200.33 compared with that of the same period of last year, with the 52.03% decrease, which
was mainly due to the decrease of bank interest rate, the Company’s reinforcement of credit
management and control and improvement of capital operation efficiency.
Annotation 39. Assets depreciation reserves
Item Current amount
Amount of the same
period pf last year
I. Total of provision for bad debts 13,964,724.54 -1,369,867.80
II. Provision for falling price of inventory - 14,110,058.80
III. Provision for devaluation of financial asset
available for sales - --
IV. Provision for devaluation of held-to-maturity
investment - --
V. Provision for devaluation of long-term equity
investment - --
VI. Provision for devaluation of investing
property - --
VII. provision for devaluation of fixed assets - --
VIII. Provision for devaluation of engineering
materials - --
IX. Provision for devaluation of construction in
progress - --
X. Provision for devaluation of productive
biological asset - --
XI. Provision for devaluation of oil asset - --
XII. Provision for devaluation of intangible
asset - --
XIII. Provision for devaluation of goodwill - --合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第80 页
XIV. Other - --
Total 13,964,724.54 12,740,191.00
Annotation 40. Investment gains
(1) The investment items were confirmed as follows:
Item Current amount Amount of last
period
Income from finacial assets available for sale 10,288,484.87 1,950,000.00
Including：income in the holding period ① 1,897,125.00 1,950,000.00
income from disposal of finacial assets
available for sale ②
8,391,359.87
Long term investment income 146,972.66 84,932.61
includes：investment gains by equity method③ 146,972.66 84,932.61
Distributed profit by investing company by cost
method --
Long term equity investment difference
amortization -- --
Equity investment liquidation income -- --
Investment income on bonds -- --
Long term investment depreciation reserves -- --
Other long term investment income -- --
Income from handling with other equity
investment --
Total 10,435,457.53 2,034,932.61
① That was the dividend in 2008 of Anhui USTC iFLYTEK Co., Ltd. - RMB 1,597,125.00 and of China Pacific
Insurance (Group) Co., Ltd. - RMB 300,000.00 alloted by the shares held by the Company.
② That was the disposing income by decrease holding the shares of Anhui USTC iFLYTEK Co., Ltd. held by the
Company.
③ The detailed investment gains by equity method at the end of the period were as follows:
Investment proportion%
Invested Units Net profit of
subsidiaries Year-begin Period-end
Gains or
loss at
period-end
（-）
Internal
return
counteracti
on
Identified
investment
income
Heifei Technological
Property Exchange 445,544.24 28.57% 28.57% 127,291.99 -- 127,291.99
Meiling Packing Co.
Ltd. 40,763.61 48.28% 48.28% 19,680.67 -- 19,680.67
Total 146,972.66 -- 146,972.66
(2) Untill the end of June 2009, no notice on significant limitation arising from the investment
income return of its related invested companies has been received by the Company.
Annotation 41. Non-operation revenue
Item Current amount Amount of last period
1．Gains from disposal of non-current
assets 125,848.90 252,451.72合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第81 页
Incl.：gains from disposal of fixed assets 125,848.90 252,451.72
gains from disposal of Intangible
assets -- --
2. Gains from exchange non monetary
capital -- --
3. Gains from debt restructuring -- --
4.Goverment subsidy* 5,048,205.45 1,165,010.00
5.Gains from inventory checking -- --
6. Gains from donation -- --
7.Net income of penalty 75,399.37 39,346.48
8.Others -- 261,323.25
Total 5,249,453.72 1,718,131.45
*Goverment subsidy was financial police reward for new production, improvement reward for
enterprises, and development fund for enterprises and allowance for technology innovation
appreciated by Hefei Finance Bureau.
Annotation 42. Non-operating expenditure
Item Current amount Amount of last period
1.Loss from disposal of non-current asset
assets 98,147.45 --
Incl.：loss from disposal of fixed assets 98,147.45 --
loss from disposal of Intangible
assets
-- --
2. Loss from exchange non-monetary
asset capital -- --
3. Loss from debt restructuring -- --
4.Disburses of donation -- 1,036,424.50
5.Special loss* -- 7,108.80
6. Loss from inventory checking -- --
7. Penalty and late fee 18,405.62 11,566.13
Total 116,553.07 1,055,099.43
Annotation 43. Income tax expenses
Item Occurring amount for the
report period
Occurring amount for the
same report period of last
year
Current income tax 6,466,282.70 --
Deferred Income Tax -2,349,962.65 -2,359,640.04
total 4,116,320.05 -2,359,640.04
Annotation 44. Other consolidated income
Items Amount in the
report period
Amount in the same
period of last year合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第82 页
1. Financial assets available for sales
Add: Amount of current gains(losses) 69,138,938.31 198,304,000.00
Less: Amount which was reckoned into other consolidated income in
front period but transferred into current profit 5,905,588.18
2. Shares enjoyed in other consolidated income of investeed unit
based on euity method
3. Hedging instrument of cash flow
Add: Amount of current gains(losses)
Less: Amount which was reckoned into other consolidated income in
front period but transferred into current profit
4. Impact on income tax reckoned into other consolidated income 9,485,002.52 29,745,600.00
5. Other consolidated income 53,748,347.61 168,558,400.00
Annotation 45. Government subsidy: RMB 5,048,205.45 has been gotten from government
subsidy，and for details, refer to Appendix VIII, Annotation 41 Non-operation Revenue.
Annotation 46. Share payment：None
Annotation 47. Debt restructure and Non-monetary capital exchange：None
Annotation 48. Loan expense：
The capitalized amount of the loan expense of the Company for this report period was RMB
240,819.79. The capitalization ratio used for calculation for confirmed capitalized amount of the
loan expense was 5.31%.
Annotation 49. Foreign currency conversion：See Annotation 8-1 “Monetary capital”
Annotation 50. Enterprises merge：
Hefei Changhong Meiling Refrigeration Co., Ltd., the subsidiary of the Company, was absorbed
and merged by Hefei Meiling Co., Ltd. the relevant procedure about the merger and registration
written-off of Hefei Changhong Meiling Refrigeration Co., Ltd have not been finally finished.
Annotation 51. Lease
(1) There is no financing lease in the report period.
(2) Particulars on lease capital as operational lessor:
The Company leased Repairing Center of Technology Service Building (Investing Real Estate),
No.1247 Heyu Road, to Hefei Dingxin Furniture Accessory Co., Ltd. The lease duration is from 1st
Dec., 2006 to 30th Nov., 2016, with rent of RMB 200, 000 per quarter. And the Company allowed
giving them 4 months for decoration, so the rent should be paid since 1st April, 2007. RMB 200,000
for this report period has been received.
The Company leased the property (Investing Real Estate), No.57 Shenzhou Road, Shenhe District,
to Liaoning Chengda Fangyuan Pharmaceuticals Chain Co., Ltd. The lease duration is from 10th
May, 2005 to 10th May, 2010, with rent of RMB 135, 000 per year. RMB 135,000 for this report
period has been received.
The Company leased the property of plastic injection factory(Investing Real Estate), located in the
Industry Park, No.2163 Lianhua Road, Jingkai District, to Sichuan Changhong Mould & Plastic合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第83 页
Technology Co., Ltd. The lease duration is from Jan 1st of 2009 to Dec 31st of 2009. Rent actually
settled for this report period was RMB 523,260.
The Company leased the property of Sheet Metal Factory(Investing Real Estate), located in the
Industry Park, No.2163 Lianhua Road, Jingkai District, to Hefei Branch of Sichuan Changhong
Precise Die-casting Co., Ltd. The lease duration is from Jan 1st of 2009 to Dec 31st of 2009. Rent
actually settled for this report period was RMB174,960.
Annotation 52. Operation ending
Hefei Changhong Meiling Refrigeration Co., Ltd., the subsidiary of the Company, was absorbed
and merged by Hefei Meiling Co., Ltd. the relevant procedure about the merger and registration
written-off of Hefei Changhong Meiling Refrigeration Co., Ltd have not been finally finished.
Annotation 53. Other cash received relating to operation business
Item Current occurred Occurred amount in the
same period of last year
Subsidies income 5,048,205.45 1,165,010.00
Indemnity income 0.00 3,000,000.00
Rent income 1,063,220.00 --
Deposit 4,386,353.42 6,162,764.63
Penalty income 75,399.37 37,701.48
Other current account 5,459,194.32 5,223,225.29
Others* 20,241,776.16 --
Subtotal 36,274,148.72 15,588,701.40
As for Others*, RMB 20,172,100.00 came from the government in advance as encouragement for
promoting economic development. For details, refer to Annotation 28: Other non-current liability.
Annotation 54. Other Cash paid out relating to operation business
Other cash paid out relating to operation business for this period is RMB 211,183,517.76, and the
amount for the same period of last year is RMB 201,734,796.29. And main items are as follows:
Mian items Current occurred
Occurred amount in
the same period of last
Promotion fee 78,748,377.19 70,076,288.19
Transport fee 37,713,626.37 38,512,872.52
Ad. Fee 18,337,494.16 11,898,498.95
Business travel expense 9,070,425.74 8,612,257.77
Storage fee 11,194,541.98 11,294,616.59
Communication fee 3,586,713.08 3,285,939.80
Consultation audit fee 458,367.60 520,624.00
House renting fee 4,474,670.98 2,530,381.29
Reparation fee 1,410,237.62 2,593,690.00
The retired fee 818,817.65 1,041,181.00
Vehicle use fee 3,554,019.64 2,518,134.00合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第84 页
Conference fee 3,000,534.71 4,498,480.24
Business reception fee 1,668,692.93 756,373.71
Board of directors fee 652,475.10 2,084,585.49
Office fee 1,799,595.53 2,789,027.64
Customer service fee 10,353,351.12 8,674,512.24
Exhibition fee 12,173,800.94 10,015,599.17
Total of the main items 199,015,742.34 181,703,062.60
Annotation 55. Other cash received relating to investment activities
Item Current occurred
Occurred amount in
the same period of last
Interest income from bank loans 1,907,042.42 2,517,725.54
Annotation 56. Other cash paid relating with investing activities: naught
Annotation 57. Other cash received relating with financing activities: naught
Annotation 58. Other cash paid relating with financing activities: naught
Annotation 59. Supplementary information for cash flow statement
Supplementary information Current occurred
Occurred amount
in the same period
of last year
1.Cash flow of operation activity transferred from net
profit
Net profit 29,396,167.90 14,209,912.59
Add: Reserve of the devaluation of asset 13,964,724.54 12,740,191.00
Depreciations of fixed assets、oil and gas assets
and productive biological assets 36,414,365.87 19,663,074.13
Amortization of intangible asset 13,370,773.41 13,370,773.41
Long term amortization expense 0.00 0.00
Loss from disposal of fixed assets, intangible
assets and other long term asset 27,701.45 -252,451.72
Rejected loss of fixed assets 0.00 0.00
Losses on change of fair value 0.00 0.00
Financial loss 11,445,569.85 14,726,206.87
Investment loss (less：income) -10,435,457.53 -2,034,932.61
Decrease in deferred income tax asset -2,349,962.65 -2,359,640.04
Increase in deferred income tax liabilities 9,485,002.51 0.00
Decreased inventory 148,951,201.93 -328,050,332.67
Decrease of operational items receivable -723,133,737.77 -114,128,652.41
Increase of operational items paid 460467329.03 481,622,610.58合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第85 页
Others - 0.00
Net cash flow arising from operating activities -12,396,321.46 109,506,759.13
2. Investment and financing activities not concerning
cash income and expense - 0.00
Debt transferred to capital - 0.00
Convertible company bonds due within one year - 0.00
Leased capital of financial capital - 0.00
3. Net change on cash and cash equivalent: 0.00
Cash balance in period-end 375,654,701.24 388,593,644.63
Decreased: Cash balance in period-begin 338,230,921.44 404,131,911.83
Add: balance of cash equivalent in period-end - 0.00
Decreased: balance of cash equivalent in
period-begin - 0.00
Net increase of cash and cash equivalent 37,423,779.80 -15,538,267.20
Annotation 60. Cash and cash equivalent are as follows
I. Cash
Balance for this
report period
Balance for the
same period of
last year
Including: Cash on hand 96,650.78 210,708.14
Bank deposit available for payment in any
time 197,641,965.02 222,460,002.60
Other monetary capital available for payment
in any time 177,916,085.44 165,922,933.89
II. Cash equivalent -- 0.00
Including: Bonds investment due within three months -- 0.00
III. Final cash and cash equivalent balance at
period-end 375,654,701.24 388,593,644.63
Annotation 61. Influence brought by notes receivable upon cash flow received from selling
goods and providing labor service
Due to that the commercial draft of RMB 807.65 million was directly used for purchase account
settlement to suppliers through endorsement in the current period, a decrease of RMB 807.65
million both occurred in cash flows respectively received in selling goods and providing service,
and paid for purchasing goods and receiving labor service.
Annotation 62. Related information about disposal of subsidiaries and other operation
companies: naught
Annotation 63. Branch report
Current occurred Occurred amount in the same period of last
year
Area
Income Cost Gross
interest Income Cost Gross
interest
I. Main business
Domestic 2,227,000,925.21 1,533,577,045.09 31.14% 1,966,988,902.37 1,422,117,192.99 27.70%合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第86 页
sales
Export 203,448,203.62 182,287,605.00 10.40% 261,748,452.75 261,418,712.64 0.13%
II. Other business
Domestic
Sale
131,991,726.61 123,251,489.33 6.62% 264,460,112.62 250,447,818.63 5.30%
Total 2,562,440,855.44 1,839,116,139.42 28.23% 2,493,197,467.74 1,933,983,724.26 22.43%
IX. Annotation for main items of financial statements of parent company
Annotation 1. Account Receivable
(1)Classified according to risk of account receivable
Book balance in period-end Book balance in year-begin
Item
Amount Percent
age%
Provisions of
bad debts Amount Percent
age%
Provisions of
bad debts
Category I 79,214,199.06 19.60 3,960,709.95 44,909,007.02 14.66 2,245,450.35
Category II 0 0 0 -- -- --
Category III 324,929,998.16 80.40 36,209,624.31 261,359,089.96 85.34 20,377,582.88
Total 404,144,197.22 100.00 40,170,334.26 306,268,096.98 100.00 22,623,033.23
Book value 363,973,862.96 283,645,063.75
Category I refers to account receivable with single significant amount (whose balance in period-end
should exceed RMB 20,000,000). Category II refers to account receivable with no single significant
amount, but with big risk after the combination according to credit risk characteristics. Category III
refers to other unsignificant account receivable.
(2)Classified according to age of account receivable
Book Accounting balance in period-end Book balance in year-begin
age Amount Percentage% Provisions of
bad debts Amount Percentage% Provisions of
bad debts
Within 1
year 368,141,755.38 91.09% 17,317,134.51 269,882,846.13 88.12% 11,399,732.73
1-2 years 2,475,161.97 0.61% 964,327.74 18,893,696.21 6.17% 2,834,054.43
2-3 years 24,499,902.22 6.06% 13,199,002.03 9,131,483.96 2.98% 3,196,019.39
3-4 years 4,546,823.72 1.13% 4,266,853.32 6,392,723.81 2.09% 3,515,998.10
4-5years 4,270,227.38 1.06% 4,212,690.12 1,934,121.93 0.63% 1,644,003.64
Above 5
years 210,326.55 0.05% 210,326.55 33,224.94 0.01% 33,224.94
Total 404,144,197.22 100% 40,170,334.26 306,268,096.98 100.00% 22,623,033.23
Net
balance 363,973,862.96 283,645,063.75
Book balance of account receivable in period-end increased with RMB 97,876,100.24 compared to
that of year-begin, with increase rate of 31.96%. The main reason is that: the Company enjoyes a
enlarging sale scale in busy season, which brings increase in account receivable which have not
been matured.
Account receivable from the shareholders’ units holding over 5% shares of the Company does not
exist in the book balance of account receivable in period-end.合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第87 页
(3)Arrearage made by the top five in balance of account receivable at period end:
Book balance in period-end Book balance in year-begin
Title of debtor unit
Amount Percenta
ge% Amount Percentage
%
Total of top 5 in accounts receivable 131,910,297.47 32.64 81,786,513.98 26.70
(4)Main debtor units for account receivable
Title of debtor unit Amount
Arrearage
time
Reason for
arrearage
Note
Nanjing Purchase Center of Suning
Appliance Co., Ltd.
79,214,199.06 Within a year
Payment for
goods
Jiangsu Five Star Appliance Co.,
Ltd. 19,918,668.95 Within a year
Payment for
goods
Beijing Dazhong Appliance Chain
Sale Co., Ltd.
12,626,409.14 Within a year
Payment for
goods
GOME Electrical Appliances
Holding Ltd.
11,783,255.84 Within a year
Payment for
goods
FAGORBRANDT 8,367,764.48 Within a year
Payment for
goods
Withdraw bad
debt according
to the
company’s
policy on bad
debt
Total 131,910,297.47
Account for 32.64% of the total account
receivable
(5)Particulars about the special withdrawl for bad debt reserve and consolidated statement could be
found in VIII-Annotation 3 (5).
(6)Cancel and switch-back of account receivable at period end
Annotation 2. Other account receivable
(1)Classified according to risks
Book balance in period-end Book balance in year-begin
Items
Amount Percen
tage%
Provision for
bad debt Amount Percent
age%
Provision for
bad debt
Category I 3,439,607.62 12.83 171,980.38 21,902,529.86 47.07 2,639,858.35
Category II 2,405,856.33 8.97 2,405,856.33 2,405,856.33 5.17 2,254,457.87
Category III 20,965,730.07 78.20 2,956,059.04 22,226,054.49 47.76 2,122,685.41
Total 26,811,194.02 100.00 5,533,895.75 46,534,440.68 100.00 7,017,001.63
Book value 21,277,298.27 39,517,439.05
Category I refers to account receivable with single significant amount (whose balance in period-end
should exceed RMB 1,000,000). Category II refers to account receivable with no single significant
amount, but with big risk after the combination according to credit risk characteristics. Category III
refers to other unsignificant account receivable.
(2)Classified according to account age
Account age
Book balance in period-end Book balance in year-begin合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第88 页
Amount Percentag
e%
Provision for
bad debt Amount Percentage
%
Provision for
bad debt
Within 1
year 22,074,755.26 82.33 1,160,155.18 36,388,995.84 78.20 1,816,435.57
1-2 years 106,173.33 0.39 15,926.00 5,531,895.90 11.89 829,784.39
2-3 years 263,389.00 0.98 92,186.15 141,070.48 0.30 49,374.67
3-4 years 2,189,766.93 8.17 2,137,256.43 2,301,075.05 4.94 2,198,475.90
4-5years 324,916.69 1.22 276,179.18 323,148.72 0.69 274,676.41
Above 5
years 1,852,192.81 6.91 1,852,192.80 1,848,254.69 3.98 1,848,254.69
Total 26,811,194.02 100.00 5,533,895.75 46,534,440.68 100.00 7,017,001.63
Net balance 21,277,298.27 39,517,439.05
Account receivable from the shareholders’ units holding over 5% shares of the Company does not
exist in the book balance of other account receivable in period-end.
(3)Particulars about the top five debtors, units’ bad debt reserve with special proportion and reasons,
as well as the consolidated statement could be found in VIII-Annotation 5.
Annotation 3. Long-term equity investment
Item Book balance
at year-begin
Increase in
this report
period
Decrease in
report period
Book balance at
period-end
Long-term equity investment 140,859,441.99 45,146,972.66 186,006,414.65
Less: Impairment for
long-term equity investment 1,660,000.00 1,660,000.00
Net value of long-term equity
investment 139,199,441.99
45,146,972.66
184,346,414.65
(1)Long-term equity investment items
Book balance at year-begin Book balance at period-end
Item
Amount
Provision
for
depreciation
Increase in
this report
period
Decrease in
report
period Amount
Provision
for
depreciation
Investment in
subsidiary
107,140,672.87 -- 45,000,000.00 152,140,672.87 --
Investment in
joint ventures
and co-operative
enterprise
-- -- -- --
Investment in
joint owned
enterprise
27,058,769.12 -- 146,972.66 27,205,741.78 --
Investment in
other enterprise 6,660,000.00 1,660,000.00 6,660,000.00 1,660,000.00
Including:
investment on
stock
-- -- -- --
Other equity
investment 6,660,000.00 1,660,000.00 6,660,000.00 1,660,000.00合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第89 页
Total 140,859,441.99 1,660,000.00 45,146,972.66 186,006,414.65 1,660,000.00
Book value of
long-term
investment
139,199,441.99 -- 184,346,414.65 --
Long-term equity investment increased with RMB 45,146,972.66 in this report period, including:
① the investment on the subsidiary increased with RMB 45,000,000.00. On Dec. 1st of 2008, the 6th
board of directors held the 9th meeting, to deceide to establish Mianyang Meiling Refrigeration Co.,
Ltd. with investment of RMB 45,000,000.00 from the Company. ②the investment on joint owned
enterprise increased with RMB 146,972.66, among which RMB 127,291.99 was the share which
the Company should enjoy from its joint iwned company- Heifei Technological Property Exchange
according to the net profit it realized in the current period; RMB 19,680.67 was the share which the
Company should enjoy from its joint iwned company- Hefei Meiling Packing Co., Ltd according to
the net profit it realized in the current period.
(2) Particulars about long-term equity investment
Invested Unit
Relationshi
p with
parent
company
Proportion
in
registered
capital of
invested
units（%）
Invest
limit
Calculat
ion
method
Investment at
period-end
Provision for
depreciation
Hefei Changhong Meiling
Refrigeration Co., Ltd
Subsidiary 100.00%
Long te
rm
Cost
method
20,140,672.87 --
HuiShang Bank Co.,Ltd. 1.15%
Long
term
Cost
method
5,000,000.00 --
Meiling Sigma Appliance
Co., Ltd
20.00% 15 years
Cost
method
1,660,000.00 1,660,000.00
Heifei Technological
Property Exchange
Joint
owned
28.57%
Long
term
Equity
method
2,420,223.52 --
Hefei Meiling Packing Co.,
Ltd
Joint
owned
48.28%
Long
term
Equity
method
24,785,518.26 --
Zhongke Meiling Cryogenic
Technology Co., Ltd.
Subsidiary 70.00%
Long
term
Cost
method
42,000,000.00 --
Jiangxi Meiling
Refrigeration Co., Ltd
Subsidiary 90.00%
Long
term
Cost
method
45,000,000.00 --
Mianyang Meiling
Refrigeration Co., Ltd
Subsidiary 90.00%
Long
term
Cost
method
45,000,000.00
Total 186,006,414.65 1,660,000.00
(3)Investment in joint owned enterprise
Unit: RMB’0000
Book balance at period
end
Amount occurred in this
report period
Invested Unit Registere
d place
Propo
rtion
for
share
-holdi
Proporti
on for
vote
right Total assets Total
liabilities
Operatin
g income Net profit合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第90 页
ng
Heifei
Technological
Property
Exchange
Hefei 28.57
% 28.57% 11874.5 11063.5 14.08 44.5
Hefei Meilingg
Packing Co., Ltd Hefei 48.28
% 48.28% 13026.3 7892.6 4440.4 4..0
(4) Increase or decrease in long-term equity investment:
Invested unit
Initial
investment
amount
Balance of
year-begin
Increase or
decrease in
this report
period
Accumulated
equity
adjustment
Balance of
period-end
Hefei Changhong Meiling
Refrigeration Co., Ltd
20,140,672.87 20,140,672.87 -- -- 20,140,672.87
HuiShang Bank Co.,Ltd. 5,000,000.00 5,000,000.00 -- -- 5,000,000.00
Meiling Sigma Appliance Co.,
Ltd
1,660,000.00 1,660,000.00 -- -- 1,660,000.00
Heifei Technological
Property Exchange
1,000,000.00 2,292,931.53 127,291.99 1,420,223.52 2,420,223.52
Meilingg Packing Co., Ltd 25,055,600.00 24,765,837.59 19,680.67 -270081.74 24,785,518.26
Zhongke Meiling Cryogenic
Technology Co., Ltd.
42,000,000.00 42,000,000.00 -- -- 42,000,000.00
Jiangxi Meiling Refrigeration
Co., Ltd
45,000,000.00 45,000,000.00 -- -- 45,000,000.00
Mianyang Meiling
Refrigeration Co., Ltd
45,000,000.00 45,000,000.00 45,000,000.00
Total 184,856,272.87
140,859,441.9
9
45,146,972.66 1,150,141.78
186,006,414.6
5
(5) Provision for depreciation of long-term equity investment:
Invested unit Book balance
at year-begin
Increase
in this
report
period
Decrease
in this
report
period
Balance
at
period-end
Notes
Meiling Sigma
Appliance Co., Ltd
1,660,000.00
Operation
suspension
Annotation 4. Income and cost of main business
Occurring amount in this report period Occurring amount in last period
Item Operation
income Operation cost Gross
profit
Operation
income Operation cost Gross
profit
1. Main business
income 2,407,107,841.51 1,700,631,957.58 29.35% 2,233,051,589.99 1,698,959,874.33 23.92%
Refrigerator,
freezer 2,402,916,122.73 1,696,231,622.86 29.41% 2,213,998,267.73 1,679,725,585.82 24.13%
(1)Domestic
sales 2,199,467,919.11 1,513,944,017.86 31.17% 1,952,249,814.98 1,418,306,873.18 27.35%合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第91 页
(2)Overseas sales 203,448,203.62 182,287,605.00 10.40% 261,748,452.75 261,418,712.64 0.13%
Air conditioner 4,191,718.78 4,400,334.72 -4.98% 19,053,322.26 19,234,288.51 -0.95%
(1)Domestic
sales 4,191,718.78 4,400,334.72 -4.98% 19,053,322.26 19,234,288.51 -0.95%
2.Other business
income 201,268,734.72 192,980,161.69 4.12% 335,084,859.93 321,190,585.42 4.15%
(1)Raw material
sales 200,205,514.72 192,748,343.73 3.72% 334,829,723.93 321,120,116.65 4.09%
(2)Lease income 1,063,220.00 231,817.96 78.20% 255,136.00 70,468.77 72.38%
(3)Other income 0 0 0.00% 0.00 0.00 0.00%
Total 2,608,376,576.23 1,893,612,119.27 27.40% 2,568,136,449.92 2,020,150,459.75 21.34%
The total sales income gained from the top five customers amounted to RMB 319,217,022.90 for
thisreport period, taking 13.26% of the total main business income and 12.24% of the total business
income.
The gross profit ratio for this period was 27.40%, 6.06 percentage points up compared to 21.34%,
gross profit ratio for the same period of last year, which was mainly due to that: falling price of raw
materials, optimization of product structure of the Company and strategic cost cut-down.
Annotation 5. Investment income
(1)Detailed items for investment income of this report period:
Item Current amount Amount of the
previous period
Income from financial assets available for sale 10,288,484.87 1,950,000.00
Including: Income gained in holding period① 1,897,125.00 1,950,000.00
Confirmed income gained from disposal of financial
assets available for sale②
8,391,359.87
Long term investment income 146,972.66 84,932.61
Including: Income confirmed according to equity method③ 146,972.66 84,932.61
Distributed profit from investing company by cost
method
--
Long term equity investment difference amortization -- --
Equity investment liquidation income -- --
Income from investment on creditor’s right -- --
Long term investment depreciation reserves -- --
Other long term investment income -- --
Income from disposal of other equity investment --
Total 10,435,457.53 2,034,932.61
①refers to the 2008 annual dividend of RMB 1,597,125.00 received by the Company from Anhui
USTC iFLYTEK Co., Ltd. for shareholding, and RMB 300,000.00 from China Pacific
Insurance(Group) Co.,Ltd. for the same reason.
②RMB 8,391,359.87 refers to the disposal income gained by the Company due to decreasing
holding stock of Anhui USTC iFLYTEK Co., Ltd..
③Income confirmed according to equity method at period end:合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第92 页
Investment
proportion%
Invested Units
Net profit of
subsidiaries Amount
at year
begin
Amount
at period
end
Gains or
loss at
ending（-）
Internal
return
counteracti
on
Identified
investment
income
Heifei Technological
Property Exchange 445,544.24 28.57% 28.57% 127,291.99 -- 127,291.99
Meiling Packing Co.
Ltd. 40,763.61 48.28% 48.28% 19,680.67 -- 19,680.67
Total 146,972.66 -- 146,972.66
(2) Until end of June, 2009, no notice on significant limitation arising from the investment income
return of its related invested companies has been received by the Company.
X. Major differences between consolidated financial statements and financial statements of
parent company
1. Net profit differences
Item Occurring amount
in this period
Occurring
amount in the
same period of
last year
Net profit of parent company 36,552,718.66 14,179,184.34
Add: Effect on parent company’s current bad debt
reserves offset to its subsidiaries -- --
Add: Current effect on emerging offset of bad debt
reserves to deferred income tax -- --
Add: Minority shareholders’ gains and losses -984,886.12 25,249.17
Add: Subsidiaries’ loss belonged to parent company -6,171,664.64 5,479.08
Add: Offset effect of unrealized internal sales --
Combined net profit 29,396,167.90 14,209,912.59
2. Shareholders’ equity difference
Item Book value at the
end of this period
Book value at the
end of last year
Shareholders’ equity of parent company 1,157,909,170.80 1,067,608,104.52
Add: Minority shareholders’ interests 15,745,200.19 16,730,086.31
Add: Effect on deferred income tax capital by emerging
offset of bad debt reserves
Add: Effected amount by parent company’s accumulative
bad debt reserves offset to its subsidiaries
Add: Subsidiaries’ current loss belonged to parent
company -6,171,664.64 -4,125,083.21
Add: Subsidiaries’ prior period loss belonged to parent
company -3,046,390.62 -3,391,981.72
Add: Subsidiary’s other variance belonged to parent
company 140,000.00 140,000.00
Add: Net capital variance brought by enterprise merger
under the same control
Add: Offset effect of unrealized internal sales
Combined shareholders’ profit 1,160,105,641.42 1,076,961,125.90合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第93 页
XI. Contingent items
1. Guarantee status
(1) External guarantee: Until the end of this period, the Company has no external guarantee.
(2) Guarantee provided to holding subsidiary company: till end of June, 2009, the Company has
ever provided guarantee for the bank loan RMB 23 million of its controlling subsidiary Zhongke
Meiling Company, and provided guarantee for the bank acceptance bill RMB 1,289,467.20 issued
by Zhongke Meiling from the bank. Detailed are available in XII (II)(4).
2.. Important law suits: Until the end of this report period, no significant suit case happens to the
Company.
XII. Related-party relationships and transactions
(I) Related-party relationship
1. The Company’s parent company and control relationship: The parent company is Sichuan
Changhong, whICH totally holds 89,368,156 shares of the Company directly and by persons acting
in concert till Jun. 30, 2009, 21.61% of the total shares of the Company, and is the largest
shareholders of the Company. Hefei Xingtai Holding Group Co., Ltd. holds 26,396,258 shares of
the Company, 6.38% of the total shares of the Company, which is the second largest shareholders.
Changhong Group holds 552,019,534 shares of Sichuan Changhong, 29.08% of the total shares, and
is the largest shareholders of Sichuan Changhong. Mianyang State-owned Assets Supervision and
Administration Commission holds 100% shares right, and is the actual controller of the Company.
2. Brief information of the Company’s parent companies and subsidiaries
(1) Brief information of the Company’s parent companies
Corporate
name
Registered
address Main business
Relationship
with the
Company
Economic
nature or
type
Legal
representative
Changhong
Group
High-tech
Development
Zone, Mianyang
City
Manufacture and sales
of Home appliance,
electric products, gas
products, chemical
products
Actual
controller of
parent company
Limited
liability
company
Zhao Yong
Sichuan
Changhong Mianyang City Manufacture and sales
of home appliance
The largest
shareholder of
the Company
Limited
company Zhao Yong
(2) Brief information of the Company’s subsidiaries
Corporate name Registered
address Main business
Relationship
with the
Company
Economic
nature or
type
Legal
representative
Zhongke Meiling
Cryogenic
Technology
Limited Company
Hefei City
Research, development,
manufacture, sales and
service of
low-temperature
refrigerating equipments
and products
Subsidiary Limited Wang Yong
Jiangxi Meiling
Refrigeration Co.,
Ltd.
Jiangxi
Jingdezhen
Development,
manufacture and sales of
refrigeration appliance,
electric products and
their components
Subsidiary Limited Wang Yong
Mianyang
Meiling
Refrigeration Co.,
Sichuan
Mianyang
Development,
manufacture and sales of
refrigeration appliance,
Subsidiary Limited Li Daijiang合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第94 页
Ltd. electric products and
their components
Hefei Changhong
Meiling
Refrigeration Co.,
Ltd.
Hefei City
Electric appliance,
electric products,
machine and production,
sales and development
of relevant parts and
components; technology
consultant.
Subsidiary Limited Li Jin
(3) Registered capitals and changes of the Company’s parent companies and subsidiaries
Corporate name Book balance at the
beginning of the year
Increment in
the year
Decrement
in the year
Book balance at the
end of the year
Changhong Group 898,040,000 -- -- 898,040,000
Sichuan Changhong 1,898,211,418 -- -- 1,898,211,418
Zhongke Meiling
Cryogenic Technology
Limited Company
60,000,000.00 -- -- 60,000,000.00
Jiangxi Meiling
Refrigeration Co., Ltd. 40,000,000.00 -- -- 40,000,000.00
Mianyang Meiling
Refrigeration Co., Ltd. -- 50,000,000.00 -- 50,000,000.00
Hefei Changhong Meiling
Refrigeration Co., Ltd. 20,000,000.00 -- -- 20,000,000.00
(4) Shares or equity and changes of parent companies holding the Company or the Company
holding its subsidiaries
Corporate name
Account balance
at the beginning
of the year
Increment in
the year
Decrement in
the year
Account balance
at the end of the
year
Changhong Group 32,078,846.00 32,078,846.00 --
Sichuan Changhong 53,276,435.00 36,091,721.00 89,368,156.00合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第95 页
Zhongke Meiling
Cryogenic Technology
Limited Company
42,000,000.00 42,000,000.00
Jiangxi Meiling
Refrigeration Co., Ltd. 40,000,000.00 40,000,000.00
Mianyang Meiling
Refrigeration Co., Ltd. 50,000,000.00 50,000,000.00
Hefei Changhong
Meiling Refrigeration
Co., Ltd.
20,000,000.00 -- -- 20,000,000.00
(5) Ownership and voting right proportion and their changes of parent companies holding the
Company or the Company holding its subsidiaries
(6) Other related parties
Corporate name Relationship with the Company
Hefei Xingtai Holding Group Co., Ltd. The second largest shareholder of the Company
Hefei Meiling Packing Products Co., Ltd Sharing company of the Company
Account balance at the
beginning of the year Increment in the year Decrement in the year Account balance at
the end of the year
Corporate name
Ownership
%
Voting
right
%
Ownership
%
Voting
right
%
Ownership
%
Voting
right
%
Ownership
%
Voting
right
%
Changhong Group 12.88 20.64 5.13 0.97 18.01 21.61
Sichuan Changhong 7.76 -- 7.76 -- --
Zhongke Meiling
Cryogenic
Technology Limited
Company
70.00 70.00 70.00 70.00
Jiangxi Meiling
Refrigeration Co.,
Ltd.
97.00 97.00 97.00 97.00
Mianyang Meiling
Refrigeration Co.,
Ltd.
-- -- 97.00 97.00 97.00 97.00合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第96 页
Heifei Technological Property Exchange Sharing company of the Company
Sichuan Changhong Jiahua IT Products Limited Subsidiary controlled by Sichuan Changhong
Sichuan Hongxin Software Co., Ltd. Subsidiary controlled by Sichuan Changhong
Sichuan Changhong Minsheng Logistic Limited Subsidiary controlled by Sichuan Changhong
Changhong Jijia Precise Machine Co., Ltd. Subsidiary controlled by Sichuan Changhong
Sichuan Changhong Mold&Palstic Tech. Co., Ltd Subsidiary controlled by Sichuan Changhong
Changhong (Hong Kong) Trade Limited Subsidiary controlled by Sichuan Changhong
Changhong Electric (Australia) Co., Ltd. Subsidiary controlled by Sichuan Changhong
Sichuan Changhong Packing Printing Co., Ltd. Subsidiary controlled by Sichuan Changhong
Huayi Compressor Co., Ltd. Subsidiary controlled by Sichuan Changhong
Jiaxipera Compressor Co., Ltd. Subsidiary controlled by Huayi Compressor
Leyijia Chain Management Co., Ltd. Subsidiary controlled by Sichuan Changhong
Leyijia (Fuzhou) Trade Co., Ltd. Subsidiary controlled by Leyijia Chain
Leyijia (Guiyang) Trade Co., Ltd. Subsidiary controlled by Leyijia Chain
Leyijia (Jinan) Trade Co., Ltd. Subsidiary controlled by Leyijia Chain
Leyijia (Mianyang) Trade Chain Co., Ltd. Subsidiary controlled by Leyijia Chain
Leyijia (Taiyuan) Trade Chain Co., Ltd. Subsidiary controlled by Leyijia Chain
Leyijia (Chengdu) Trade Co., Ltd. Subsidiary controlled by Leyijia Chain
(II) Related trasaction
Pricing policy: all business between the Company and its related-party enterprise are dealt with
common market rules, and treated equal to other enterprise with business relationship. Any price of
purchase & sales or other service between the Company and its related-party enterprise shall be
state stipulated price if state stipulated price exists; if where state stipulated price does exist, it shall
be market price; if where no market price exists, it shall be priced by both parties based on the
practical cost plus reasonable expenses; to any special service, of which price can not be decided in
accordance with the principle of Cost Plus Expenses, shall be priced by both parties through
negotiation.
1. Related-party purchase, the Company’s purchases from related parties in the year are following:
(Unit: RMB 0,000)
Related-party enterprise name
Purchase in the report
period(excluding tax)
Purchase in the same
period of last year
Hefei Meiling Packing Products Co., Ltd. 1,620.66 5,049.64
Sichuan Changhong 109.54 1,946.82
Sichuan Changhong Minsheng Logistic
Limited
918.76 300.69
Huayi Compressor Co., Ltd. 11,592.00 15,445.80
Sichuan Changhong Mold&Palstic Tech. Co.,
Ltd.
2196.76 3,638.87合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第97 页
Changhong Jijia Precise Machine Co., Ltd. 968.02 25.90
Sichuan Changhong Packing Printing Co., Ltd. 43.90 --
Sichuan Hongxin Software Co., Ltd. 108.38 --
Jiaxipera Compressor Co., Ltd. 2072.01 --
2. Related-party sales
In the year the Company’s sales to related parties are following:
(Unit: RMB 0,000)
Related-party enterprise name
Sales in the report
period(excluding tax)
Sales in the same period
of last year (excluding
tax)
Hefei Meiling Packing Products Co., Ltd -- 10.87
Sichuan Changhong -- 8.12
Changhong (Hong Kong) Trading Limited -- 134.77
Changhong Jijia Precise Machine Co., Ltd. 990.88 2.72
Sichuan Changhong Mold&Palstic Tech. Co.,
Ltd
1,418.18 3112.66
Changhong (Australia) 1.59 --
Leyijia Chain Management Co., Ltd. 218.14
Leyijia (Fuzhou) Trade Co., Ltd. 3.29 --
Leyijia (Guiyang) Trade Co., Ltd. -2.54 --
Leyijia (Jinan) Trade Co., Ltd. -- 2.19
Leyijia (Mianyang) Trade Chain Co., Ltd. 178.17 51.84
Leyijia (Taiyuan) Trade Chain Co., Ltd. 0.77 8.16
Leyijia (Chengdu) Trade Co., Ltd. 5.30 92.78
3. Balances of receivables and payables to related-party enterprises
Book blance at the end of the
report period
Book balance at the beginning
Item of the year
Amount Proportion Amount Proportion
Other account receivable:
Sichuan Changhong 154,501,041.41 30.81 166,495,146.21 47.44
Meiling Packing Products Co., Ltd 155,000.00 0.03 223,811.50 0.06
Sichuan Changhong Mold&Palstic
Tech. Co., Ltd 50,000.00 0.01 41,691.13 0.01
Sichuan Changhong Minsheng
Logistic Limited 500,000.00 0.01 5,070,644.60 1.44
Account payable:
Meiling Packing Products Co., Ltd 12,940,240.75 1.35 10,222,623.22 1.61合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第98 页
Sichuan Changhong 4,208,668.31 0.44 5,053,199.18 0.79
Sichuan Changhong Minsheng
Logistic Limited 4,265,590.07 0.45 2,292,660.18 0.36
Changhong Jijia Precise Machine
Co., Ltd. 924,329.85 0.10 1,171,904.55 0.18
Sichuan Changhong Mold&Palstic
Tech. Co., Ltd 3,476,878.63 0.36 3,690,763.28 0.58
Sichuan Changhong Packing
Printing Co., Ltd. 13,034.31 0.00 140,983.24 0.02
Huayi Compressor Co., Ltd. 59,106,033.49 6.18 26,323,603.13 4.14
Changhong Group -- 22,380.00 --
Jiaxipera Compressor Co., Ltd. 9,192,448.00 0.96 -- --
Account receivable:
Leyijia (Fuzhou) Trade Co., Ltd. 30,401.24 0.01 23,267.70 0.01
Leyijia (Guiyang) Trade Co., Ltd. 7,630.20 0.00 37,368.00 0.01
Leyijia (Jinan) Trade Co., Ltd. 24,007.60 0.01 24,007.60 0.01
Leyijia (Mianyang) Trade Chain
Co., Ltd. 392,827.91 0.10 139,911.87 0.05
Leyijia (Taiyuan) Trade Chain Co.,
Ltd. 48,404.05 0.01 39,404.05 0.01
Leyijia (Tianjin) Trade Chain Co.,
Ltd. 39,971.92 0.01 49,421.92 0.02
Leyijia (Chengdu) Trade Chain Co.,
Ltd. 119,180.28 0.03 357,129.22 0.12
Sichuan Changhong Mold&Palstic
Tech. Co., Ltd. -- - 0.36 --
Account received in advance:
Sichuan Changhong 4,937,793.47 1.60 4,645,445.98 1.45
Changhong (Hong Kong) Trading
Limited 27,586.02 0.01 223.69 --
Changhong (Australia) 68,154.78 0.02 3,280.76 --
Leyijia Chain Management Co.,
Ltd. 0.02 0.00 0.02 --
4. The Company’s guarantee for related party:
(1) The Company’s guarantee for loan of related party:
The guaranteed
Amount
guaranteed
(RMB’0000)
Loan bank Loan period Type of
guarantee Note
Zhongke Meiling
Cryogenic
Technology
Limited Company
2,000.00
Hefei Branch,
Bank of
Communications
2008.10.22-2009.10.22 Surety
bond
Zhongke Meiling
Cryogenic
Technology
Limited Company
300.00
Hefei
Huangchengmiao
Branch, Huishang
Bank
2008.08.18-2010.8.18 Surety
bond
Total 2,300.00 -- -- --合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第99 页
(2) The Company’s guarantee for bank draft of Zhongke Meiling: the Company provided guarantee
for bank acceptance bill of RMB 1,289,467.20 of Zhongke Meiling.
5. Guarantees of related parties provided for the Company
(1) Guarantee of related party for the Company’s bank loan: Changhong Group provided guarantee
for bank loan of RMB 300,000,000.00 of the Company.
(2) Guarantee of related party for the Company’s bank draft: Changhong Group provided guarantee
for band acceptance bill of RMB 309,572,000.00 of the Company.
6. Other items about related-party transaction
(1) The Company leased the injection molding factory located in the Industrial Park, No.2163,
Lianhua Road, Economic Development Zone to Sichuan Changhong Mold & Plastic Tech Co., Ltd.,
from Jan. 1, 2009 to Dec. 31, 2009. The actual settlement of leasing fee in this period is RMB
523,260.
(2) The Company leased the plate working factory located in the Industrial Park, No.2163, Lianhua
Road, Economic Development Zone to Heifei Company of Changhong Jijia Precise Machine Co.,
Ltd., from Jan. 1, 2009 to Dec. 31, 2009. The actual settlement of leasing fee in this period is RMB
174,960.
(3) To promote Meiling’s products, form Meiling brand to be an uniform service impression,
improve service level of Meiling service and user satisfaction, realize close loop treatment on
service information, strengthen real-time monitoring on whole process of service, reinforce data
collection capability, realize standardization, normalization and specialization of hot-line, the
Company continued to sign Meiling Service Hot-line Consignation Agreement with Sichuan
Changhong on Oct. 22, 2007. The consignation expense was RMB 1,500,000 from Aug. 1, 2007 to
Jul. 31, 2008, and the Company paid RMB 120,000 each month. In Jul., 2008, the Company
Continued to sign the agreement, which promised that the expense was 1,700,000 from Aug. 1,
2008 to Jul. 31, 2009. RMB 967,800 of the expense has settled in this period.
(4) The Company signed up Meiling Product Transport Contract 2009 with Sichuan Changhong
Minsheng Logistic Limited, which stipulates that Sichuan Changhong Minsheng Logistic Limited is
assumed to transport the Company’s product from Hefei to all districts and cities of Chengdu,
Mianyang and Wuhu, totally 3 highroad lines, and all other highroad transports from the above
districts to any address assigned by the Company and from the above districts to the starting places
of transport. The period of the contract is from Jan. 1, 2009 to Dec. 31, 2009. In this year RMB
9,187,600 freight excluding tax has been settled.
(5) On Nov. 17, 2008, the Company signed up Air Conditioner OEM Contract [ML-CH-2008-01]
with Sichuan Changhong, in which both parties reached agreement on home air conditioner branded
with “Meiling” and manufactured by Sichuan Changhong in accordance with the Company’s
requirements, and settlement shall be bank acceptance bill of six months, and settlement price of
newly produced OEM shall be the price calculated as budget cost of Sichuan Changhong, the
principle of unit price is: [(cost of material + expenses of manufacturing)*1.17*1.05] + installation
expenses * 1.17, the contract period is from Nov. 27, 2008 to Dec. 31, 2009.
XIII. Commitment: Naught.
XIV. Events occurring after the balance sheet date
1. Non-adjusting events occurring after the balance sheet date
In order to activate the assets as soon as possible and satisfy fund demand of the Company’s
operation and development, centralized core sources to develop main business, which accorded with
the demand of the Company’s development strategy. The board of the Company authorized the
management level to gradually sell all the financial assets available for sale in secondary market
according to financial market environment and relevant regulations. Decrease of holding financial合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第100 页
assets available for sale:
From opening on Jul. 1, 2009 to closing on Jul. 3, 2009, the Company accumulated sold 1 million
shares of China Pacific Insurance by bidding trade system of Shenzhen Stock Exchange, with the
sold average price of RMB 24.15, and it’s expected the net profit of investment before tax was
RMB 23,528,500 after deducting cost and relevant transfer tax. After this decrease of holding, the
Company did not hold shares of China Pacific Insurance any longer.
2. Adjusting events occurring after the balance sheet date: Naught.
XV. Other important matters
1. In 2006, Hefei Meiling Co., Ltd. (hereinafter refer to as “the Company”) signed Agreement of
Taking back the Use Right of State-owned Land with Land Reserve Center, and Land Reserve
Center paid money and took back the use right of two pieces of state-owned land of the Company
located in Wuhu Road in Hefei City.
On Jun. 11, 2009, Hefei Land & Resources Bureau and Hefei Tender & Bidding Center made a
public action in Hefei Land Deal Market for the use right of 166.17 acre land located in the cross of
Baohe District, Wuhu Road and Ma’anshan Road, including the aforesaid land owned by the
Company before transferred an area of 153 acre. According to the results of the action declared, the
deal price of the land was RMB 6,150,000/acre.
According to Agreement of Taking back the Use Right of State-owned Land, the Company and
Land Reserve Center agreed that Land Reserve Center took back totally 119,400 square meters land
located in No.33 and No. 48, Wuhu Road which was owned by the Company before, and within six
months after transaction, Hefei Financial Department paid compensation (including dismantling,
removing, allocating, ect.) for taking back the land to the Company, which would be calculated as
65% of the total amount deducting deed tax and the bank interests (including estimation fee) of loan
that Hefei Land Reserve Center mortgage the land. After transferring the land, if the government
income was lower than RMB 198,040,000 after divided as aforesaid proportion, the government
income would calculated as 198,040,000. The Agreement promises that the transferred area of the
land is calculated as the final layout and practice mapping of Municipal Planning Bureau, and the
Company provides service of levying municipal and public welfare land such as roads, greenbelts
and school land. Besides, the Agreement also promises that Land Reserve Center should actively
promote this land and try to well activate the land assets as soon as possible, and if the final deal
price is over RMB 0.6 billion and unit price is respectively over RMB 4 million/acre, RMB 5
million/acre and RMB 6 million/acre, Land Reserve Center would respectively withdraw 10%, 30%
and 50% of the relevant excessed part. After withdrawing, then calculate the compensation and
government income as aforesaid promises.
According to the Company’s simple calculation, relevant removing losses and expenses of land use
right of the original factory, fixed assets and projects in process damaged in the process of removing,
relevant rebuilding and allocation expenses in other place, and relevant tax that may involved in,
were expected as totally about RMB 0.45 billion.
XVI. Complementary information
1. In accordance with Explanatory Notice No. 1 for Information Disclosures by Companies That
Offer Securities to the Public -Non-recurring Gains and Losses(2008) issued by CSRC, the
deducted item and amount of non-recurring gains and losses of the Company are following:
Item Non-recurring
gains/losses Income tax
Non-recurring
gains/losses
attributed to
Non-recurring
gains/losses
attributed to the合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第101 页
minority
shareholders
after tax
owners of
parent company
after tax
1.Disposal profit and loss on
non-current assets 27701.45 4,155.22 26.03 23,520.20
2. Tax refund and exemption approved
by exceeding authority or without
formal document of approval
-
3. Government subsidy reckoned into
current profit/loss, but close to the
Company’s business, except for
government subsidy at an uniform
national standard or with a certain
ratio
5048205.45 801,443.76 27,797.91 4,218,963.78
4. Capital occupation received from
non- financial enterprises and
recorded into the current gains and
losses
-
5. The investment cost of subsidiaries,
affiliated enterprise and combined
enterprise obtained by the enteprise is
less than the gains resulting from
recoganizable fair value of net asset
enjoyed by investee units
-
6. Profit and loss on exchange of
non-monetary assets -
7. Profit and loss on entrusted
investment -
8. Assets devalue provisions
withdrawn for force majeure, such as
natural disaster
-
9. Debt restructuring gains/losses -
10. Enterprise restructuring expense
such as the expense for employee
allocation and combined expense
-
11. Profit and loss exceeding fair
value, resulting from unfair
transactions
-
12. Current net gains/losses of the
subsidiaries from the period-begin to
merger date occurred in enterprise
merger under the common control
-
13. Losses/gains occurred in contigent
matters non-irelevant with normal
operations of the Company
-
14. Held trasaction financial asset,
gains/losse of changes of fair values
from transaction financial liablities,
and investment gains from disposal of
transaction financial asset, transaction
financial liablities and financial asset
available for sales, exclude the
effective hedging business relevant
with normal operations of the
Company
8391359.87 1,258,703.98 - 7,132,655.89
15. Switch back of provision for the
devaluation of account receivable of -合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第102 页
singly adopting devaluation test
16. Losses and gains obtained from
external entrusted loans -
17. Losses/gains from the change of
fair values of investing property of
subsequent measurement adopted by
method of fair value
-
18. Influences on current losses/gains
for one adjustment of current
losses/gains in accordance with the
requirements of laws and regualations
such taxation and accountings.
-
19. Income of trustee fee from
entrusted operation -
20. Net amount of other non-operating
income and expense except the above
items
56993.75 8,580.06 32.48 48,381.21
21. Other losses/gains items
conforming the definitions of
non-recurring gains/losses
- -
Subtotal of non-recurring gains/losses 13,524,260.52 2,072,883.02 27,856.42 11,423,521.08
2. In accordance with China Securities Regulatory Commission, Compilation Rules for Information
Disclosures by Companies That Offer Securities to the Public (No. 9): – Calculation and
Disclosure of Return on Net Assets and Earnings per Share, calculated return on net assets and
earnings per share are following:
Return on equity Earnings per Share
Item Profits in report
period Fully
diluted
Weighed
average
Basic
earnings
per share
Diluted
earnings
per share
Net profits attributed to owners of
the parent company’s 30,381,054.02 2.65% 2.83% 0.0734 0.0734
Net profits attributed to common
shareholders of the Company after
deducting non-recurring profit/loss
18,957,532.94 1.66% 1.77% 0.0458 0.0458
XVII. Explanation on differences between Domestic Accounting Standards and International
Accounting Standards
On Sep. 12, 2007, China Securities Regulatory Commission issued Notice on the Relevant Issue
about the Auditing of the Companies That Issue the Domestically Listed B-shares in Foreign
Currencies, in which announced that cancel the requirements on double audit stated in regulations
on information disclosure released before on the domestically listed B-shares in foreign currencies
shall carry out the overseas auditing when hiring an accounting firm with the securities
certifications since the day of notice release. Since year 2007, the Company has not compiled the
financial report under the International Accounting Standards, the financial report of the Company
was compiled in accordance with China’s Accounting Standard for Business Enterprises, and thus,
there were no differences between Domestic Accounting Standards and International Accounting
Standards in the end of this year.
Hefei Meiling Co., Ltd.
Legal representative: Zhao Yong合 Hefei Meiling Co., Ltd. Semi-Annual Report 2009
总103 页，第103 页
Person in charge of accounting works: Yu Wanchun
Person in charge of accounting institution: Wang Shaozhuo
August 7, 2009
Section VII. Documents Available for Reference
I. The text of semi-annual report carrying the signature of Chairman of the Board.
II. The accounting statements carrying the signatures and seals of Chairman of the Board, Financial
Principal and Principal of Accounting Institutes.
III. Originals of all documents of the Company and manuscripts of public notices ever disclosed in
the newspapers designated by CSRC in the report period.
VI. Articles of Association of Hefei Meiling Co., Ltd.
The aforesaid documents are all available at headquarter of the Company. The Company would
provide them timely when CSRC and Shenzhen Stock Exchange require or the shareholders need
consultation according to the regulations and Articles of Association.
Chairman of the Board: Zhao Yong
Board of Directors of
Hefei Meiling Co., Ltd.
August 7, 2009
