Hefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
1
Hefei Meiling Co., Ltd.
The First Quarterly Report 2010
(Full Text)
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of Hefei Meiling Co., Ltd. (hereinafter
referred to as the Company) and its directors, supervisors and senior executives hereby confirm that
there are no any fictitious statements, misleading statements, or important omissions carried in this
report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
1.2 The First Quarterly Financial Report of 2010 has not been audited by CPAs.
1.3 Principal of the Company Zhao Yong, Person in Charge of Accounting Works Yu Wanchun,
and Person in Charge of Accounting Organ (Accounting Supervisor) Liu Bimin hereby confirm that
the Financial Report hereby confirm that the Financial Report of the First Quarterly Report is true
and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes:
Unit: RMB
At the end of the report
period
At the period-end of the
last year
Changes of
increase/decrease (%)
Total assets (RMB) 5,288,277,531.25 4,786,934,109.38 10.47%
Shareholders’ equity attributable to
shareholders of the listed company
(RMB)
1,372,754,332.85 1,324,427,907.57 3.65%
Share capital (Share) 413,642,949.00 413,642,949.00 0.00%
Net asset per share attributable to
shareholders of listed company
(RMB/Share)
3.32 3.20 3.75%
In the report period The same period of last
year
Changes of
increase/decrease (%)
Total operating income (RMB) 1,952,626,496.12 1,239,373,424.99 57.55%
Net profit attributable to shareholders of
the listed company (RMB) 110,664,275.21 5,937,090.76 1,763.95%
Net cash flow arising from operating
activities (RMB) -92,265,562.13 72,876,649.76 -226.61%
Net cash flow arising from operating
activities per share (RMB/Share) -0.22 0.18 -222.22%
Basic earnings per share (RMB/Share) 0.2675 0.0144 1,757.64%
Diluted earnings per share (RMB/Share) 0.2675 0.0144 1,757.64%
Weighted average return on equity (%) 8.21% 0.47% 7.74%
Weighted average return on equity after
deducting non-recurring gains and losses
1.12% 0.38% 0.74%Hefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
2
(%)
Items of non-recurring gains and losses Amount in year-begin to
the end of report period
Gains and losses from the disposal of non-current assets 1,913,142.22
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
32,323,449.18
Held transaction financial asset, gains/losses of changes of fair values from transaction
financial liabilities, and investment gains from disposal of transaction financial asset,
transaction financial liabilities and financial asset available for sales, exclude the
effective hedging business relevant with normal operations of the Company
82,050,909.75
Other non-operating income and expenditure except for the aforementioned items 77,947.33
Influenced amount of minority shareholders’ equity -139,576.99
Influenced amount of income tax -20,626,251.22
Total 95,599,620.27
Explanations on items of non-recurring gains and losses
1. 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) was RMB 32,323,449.18, which was one obtained by the underling
subsidiary of the Company Changhong Air conditioner from the national Energy-saving and
Favoring People policy in the first quarter of 2010.
2. Investment gains RMB82,050,909.75 from held transaction financial asset, gains/losses of changes
of fair values from transaction financial liabilities, and investment gains from disposal of transaction
financial asset, transaction financial liabilities and financial asset available for sales, exclude the
effective hedging business relevant with normal operations of the Company, which was the pre-tax
gains from disposing financial assets available for sales—shares of Anhui USTC Iflytek Co.,
Ltd.(short form: iFLYTEK).
2.2 Total number of shareholders at the end of the report period and shares held by the top ten
shareholders with unrestricted conditions
Unit: Share
Total number of shareholders
at the end of report period
72,126
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Full name of shareholder
Amount of tradable shares with
unrestricted conditions held at the
end of report period
Type of shares
Sichuan Changhong Electric Co., Ltd 45,641,449 RMB common share
Hefei Xingtai Holding Group Co., Ltd 27,730,974 RMB common share
Changhong (Hong Kong) Trade Co., Ltd. 17,150,815 Domestically listed foreign share
Industrial and Commercial Bank of China
－ China Universal Growth and Focus
Stock Fund
7,977,806 RMB common share
CAO SHENGCHUN 7,578,969 Domestically listed foreign shareHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
3
Industrial and Commercial Bank of China
－ Guangfa Jurui Stock Fund 5,874,755 RMB common share
Hefei Meiling (Group) Holdings Co., Ltd. 4,978,752 RMB common share
Long Qinfang 2,100,566 Domestically listed foreign share
CHEN YI QING 1,608,859 Domestically listed foreign share
Industrial and Commercial Bank of China
－ Guangfa Core Selected Stock Fund 1,599,840 RMB common share
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial index,
and explanations of reasons
√Applicable □Inapplicable
1. Operating income increased over the same period of last year, because of be driven by related
national policies and uprising of market demand, and the improvement of management ability of the
Company, which all enhanced the products sales quantity.
2. Increases in operating profit, total profit and net profit attributable to shareholders of listed
companies were mainly benefited from two aspects; enhancement of products sales quantity brought
in the increases in operating income, thus improved the profit-gaining ability, the Company sold out
part financial assets available for sales and obtained investment gains.
3. Increase in earnings per share was mainly because net profit attributable to listed companies had
large margin growth.
3.2 Analysis and explanation of significant events and their influence and solutions
□Applicable √Inapplicable
3.3 Implementations of commitments by the Company, shareholders and actual controller
√Applicable □Inapplicable
Item of Commitments Promisee Content of
commitments Implementation
Commitments for Share Merger
Reform
Sichuan
Changhong,
Changhong
Group and
Meiling Group
Statutory
commitment and
commitment on
additional
consideration, and so
on
Accomplished implementations
Commitments for share restricted
trade
Sichuan
Changhong,
Changhong
Group and
Meiling Group
Statutory
commitment and so
on
Strictly performed the commitments
Other commitments (including
additional commitments)
Sichuan
Changhong
Commitment on
avoid competitions in
the same industry
Strictly performed the commitments
Commitments for Share Merger
Reform Naught Naught Naught
Commitments for share restricted
trade Naught Naught Naught
Other commitments (including
additional commitments) Sichuan Commitment on Strictly performed the commitmentsHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
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Changhong equity transfer
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
√Applicable □Inapplicable
Unit: RMB
No. Securitie
s kinds Stock code Short form of
the stock
Initial
investment
amount
(RMB)
Amount held
(Share)
Book value at
period-end
(RMB)
Total
investment
proportion
of securities
in
period-end
(%)
Gains and
losses in report
period
(RMB)
1 Stock 002230 iFLYTEK 2,629,503.03 1,373,000.00 56,210,620.00 100.00% 0.00
Other stock investment held at the end of
report period 0.00 - 0.00 0.00% 0.00
Gain/loss of the sold securities investment
in the report period - - - - 69,743,273.28
Total 2,629,503.03 1,373,000.00 56,210,620.00 100% 69,743,273.28
Notes on securities investment
The financial assets available for sale held by the Company—shares of iFLYTEK were obtained in
way of contract transfer before its listing. In the report period, the gains and losses of the sold
securities investment amounting to RMB 69,743,273.28 were income after tax.
3.5.2 Registration form for receiving research, communication and interview in the report period
Date Place Method Investor Contents discussed and materials
supplied
Jan. 13, 2010 Office of the
Company Spot investigation
Everbright
Securities Co., Ltd.
11
Operation status of the Company
Jan. 21, 2010 Office of the
Company Spot investigation UBS Securities
Company Limited Operation status of the Company
March 23,
2010
Office of the
Company Spot investigation
GF Fund
Management
Co.,Ltd.
Operation status of the Company
March 25,
2010
Office of the
Company Spot investigation Shenyin & Wanguo
Securities Co., Ltd. Operation status of the Company
3.5.3 Particulars about the explanations on other significant events
√Applicable □Inapplicable
I. Changhong Air-conditioner bid for purchasing 10 percent equity stake of Zhongshan Changhong
In Jan 2010, China Minmetals Corporation (hereinafter refers to as Minmetals) transferred its holding
10 percent equity stake of Zhongshan Changhong by publicly listed hanging out in China Beijing
Equity Exchange. In accordance with the strategy demand of development of white applianceHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
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industry, in order to enhance the Company’s control ability on Zhongshan Air-conditioner, improve
the decision-making and management operation efficiencyof Zhongshan Changhong which were
good for further integrating and optimizing the white appliance resource, better promoted the
development of air-condition industry of the Company, the Company held 29th meeting of the 6th
board on Jan. 26, 2010, in which examined and approved the Proposal on Changhong
Air-Conditioner Bid For Purchasing 10 Percent Equity Stake Of Zhongshan Changhong; agreed that
the Company participated in China Minmetals Corporation’s publicly hanging out to transfer its
holding 10 percent equity stake of Zhongshan Changhong through underling wholly-owned
subsidiary of the Company-- Sichuan Changhong Air-conditioner Co., Ltd. The assets appraisal price
of the aforementioned bid before listing publicly was RMB 11,398,300 and the listed price was RMB
11,412,800, the bid price of Changhong Air-conditioner which could be agreed was not more than
RMB 11.5 million. Changhong Air-conditioner signed up to participate the China Minmetals
Corporation’s publicly hanging out to transfer its holding 10 percent equity stake of Zhongshan
Changhong in accordance with regulations and procedures. Because only one intended accepter
(Changhong Air-conditioner) during the process of hanging out to transfer, the equity transfer would
be adopted contract transfer in stipulated procedure and requirement of notice on public transfer. On
March 2, 2010, China Minmetals Corporation signed Equity Transaction Contract with Changhong
Air-conditioner, in which its holding 10 percent equity stake of Zhongshan Changhong were
transferred to Changhong Air-conditioner with price of RMB 11,412,800. At present, Changhong
Air-conditioner is transacting the equity delivery of the bid target and changes on procedures of
industry and commerce.
II. Contract purchase 100 percent state-owned equities of Hefei Meiling Group Holding Co., Ltd.
In accordance with development plan and demand of general protection and management of Meiling
Brand, on March 25, 2010, the Company held 31st meeting of the 6th board of the Company in which
examined and approved the Proposal on Contract Purchase 100 Percent State-Owned Equities Of
Hefei Meiling Group Holding Co., Ltd.: agreed the Company to contract purchase 100 percent
state-owned equities of Hefei Meiling Group Holding Co., Ltd.(hereinafter refer to as Meiling
Group) held by Hefei Xingtai Holding Group Co., Ltd(hereinafter refers to Xingtai Holding
Company), excluded the 1.2 percent equity of the Company held by Meiling Group. In accordance
with the appraisal results on 100 percent state-owned equities of Meiling Group checked by
State-owned Assets Supervision and Administration Commission of Hefei Municipal Government,
the appraisal price of the bid was RMB 111,200,000, and the asset transfer price was RMB 113.2
million after the full negotiations between the Company and Xingtai Holding Company. And agreed
the Company signed Equity Transfer Contract with Xingtai Holding Company. On Apri; 12, 2010,
the Company held the 1st extraordinary shareholders’ general meeting 2010, in which Contract
Purchase 100 Percent State-Owned Equities Of Hefei Meiling Group Holding Co., Ltd. was
examined and approved. While the board and shareholder’ general meeting examined the proposal,
related director and shareholders all avoided the voting, the voting procedure conformed to the
provisions of relevant laws and regulations, the pricing of related transaction abided by the principles
of openness, justness and fairness without hurting the interests of the Company and other
shareholders.
The assets in contract purchase 100 percent state-owned equities of Meiling Group included: 1.
Long-term investment: 100 percent state-owned equities of 7 enterprises such as Hefei Meiling
Household Appliances Industry and Trade Co., Ltd., Meiling EQUATOR Appliances(Hefei) Co.,
Ltd., Hefei EQUATOR Electrics Co., Ltd., Hefei Meiling Nonferrous Metal Products Co., Ltd., Hefei
Meiling Precision Tube Co., Ltd., Hefei Meiling Environmental Packing Materials Co., Ltd. and
Hefei Meisidun Appliance Co., Ltd.; and 51.72 percent state-owned equities of Hefei Meiling
Packing Products Co., Ltd. 2. Intangible assets: exclusive right to use a registered trademark of
Meiling and trade name of Meiling. Meiling brand totally registered 28 kinds of commodities,
Meiling Group owned all registered trademark exclusive rights of Meiling except for theHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
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Classification 11, meanwhile owned 23-years free using right of Meiling brand in classification 11
except for refrigerator, freezer and air-conditioner. Contract purchase 100 percent state-owned
equities of Hefei Meiling Group Holding Co., Ltd. did not include the 1.2 percent equity of the
Company held by Meiling Group. After the effective of Equity Transfer Contract, Xinglong Holding
would finish the peeling-off works on non-transfer assets under Meiling Group, the peeling-off assets
included 1.2 percent equities of the Company held by Meiling Group.( in August 2008, pursuant to
Reply to Related Matters on Transfer Shares Held by State-owned Shareholders of Hefei Meiling
Co., Ltd.Without Payment issued by State-owned Assets Supervision and Administration
Commission of the State Council, in which 8.31 percent state-owned equities of Meiling Appliance
held by Meiling Group totaled 34,359,384 shares were transferred to Xingtai Holding without
payment. Thus, Meiling Group would transfer its holding remaining 1.2 percent equities to Xingtai
Holding as soon as possible.)
On April 9, 2010, the Company received the document Reply on Approving Contract Transfer
State-owned Equities of Meiling Group with HGZCQ No.(2010)34 transmitted by Xingtai Holding,
in which State-owned Assets Supervision and Administration Commission of Hefei Municipal
Governemnt approved that Xingtai Holding would transfer 100 percent state-owned equities of
Meiling Group(including Meiling Group Trade Name) with price of RMB 113.2 million after peeling
off part assets and liabilities.
Takeover of the transferred assets thoroughly settled problems concerning entirety of brand Meiling
and integrity and effectiveness of subsequent brand maintenance, catered for the developmental
needs of the Company, safeguarded the wholeness and integrity of brand, and contributed to the
steady development and expansion of the brand. In the meanwhile, purchase of relevant business
assets of Meiling Group was advantageous to give full play to coordinative effect of industry,
promoting the overall ability of negotiating price with the outside, market influence and
comprehensive competitive capacity.
The aforesaid issues had been disclosed in the form of notice (No. 2010-012, No. 2010-016 and No.
2010-017) published on Securities Times, Hong Kong Commercial Daily and Juchao information
website respectively dated Mar. 26, 2010 and Apr.13,2010 .
Currently, the Company was coordinating Xingtai Holding to peel off Meiling Group’s assets which
were not involved in this transfer and would fulfilled relevant formalities for ownership change as
soon as possible after completing assets detachment.
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Hefei Meiling Co., Ltd. March 31, 2010 Unit: RMB
Balance at period-end Balance at year-begin
Items Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 562,798,843.16 436,927,125.90 747,572,445.88 579,447,940.41
Settlement provisions
Capital lent
Transaction finance assetHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
7
Notes receivable 1,383,271,826.20 1,299,605,177.00 892,748,372.08 842,917,722.71
Accounts receivable 391,538,842.56 230,043,084.84 317,114,097.62 201,332,264.42
Accounts paid in advance 115,268,054.99 123,028,765.18 109,721,377.94 134,789,646.12
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 70,431,566.08 26,827,984.10 18,325,650.19 13,900,993.24
Purchase restituted finance
asset
Inventories 1,207,748,877.69 867,128,882.01 1,052,702,140.26 806,388,957.97
Non-current asset due within
one year
Other current assets
Total current assets 3,731,058,010.68 2,983,561,019.03 3,138,184,083.97 2,578,777,524.87
Non-current assets:
Granted loans and advances
Finance asset available for
sales 56,210,620.00 56,210,620.00 134,011,570.00 134,011,570.00
Held-to-maturity investment
Long-term account
receivable
Long-term equity investment 38,628,371.63 557,185,228.79 37,028,371.63 557,185,228.79
Investment property 14,255,450.48 10,052,653.68 14,423,395.21 10,136,925.05
Fixed assets 784,583,107.01 591,150,707.04 802,671,721.93 592,203,832.78
Construction in progress 11,208,147.12 20,252,771.88 8,930,438.02 19,652,067.31
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 595,094,232.95 543,888,932.66 603,705,411.46 550,011,819.36
Expense on Research and
Development 21,938,547.62 15,413,612.97
Goodwill
Long-term expenses to be
apportioned 450,000.00 600,000.00
Deferred income tax asset 34,851,043.76 33,150,566.70 31,965,504.19 30,546,536.79
Other non-current asset
Total non-current asset 1,557,219,520.57 1,811,891,480.75 1,648,750,025.41 1,893,747,980.08
Total assets 5,288,277,531.25 4,795,452,499.78 4,786,934,109.38 4,472,525,504.95
Current liabilities:
Short-term loans 150,000,000.00 150,000,000.00 184,000,000.00 184,000,000.00
Loan from central bankHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
8
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable 508,978,056.15 408,011,819.00 404,691,072.19 362,864,725.10
Accounts payable 1,371,075,784.44 1,078,614,500.10 1,157,326,858.96 963,182,987.91
Accounts received in
advance 810,153,917.10 787,346,057.28 718,021,736.69 703,731,317.30
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 49,277,144.21 43,152,659.59 70,861,486.07 58,091,040.19
Taxes payable 108,015,697.36 107,085,497.17 65,662,600.35 60,760,397.19
Interest payable
Dividend payable 906,201.72 906,201.72 1,217,175.42 1,217,175.42
Other accounts payable 667,612,304.46 620,758,681.65 624,779,113.24 598,352,508.10
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
within 1 year 3,000,000.00 3,000,000.00
Other current liabilities 20,172,100.00 20,172,100.00 20,172,100.00 20,172,100.00
Total current liabilities 3,689,191,205.44 3,216,047,516.51 3,249,732,142.92 2,952,372,251.21
Non-current liabilities:
Long-term loans 15,247,300.00 15,247,300.00 15,247,300.00 15,247,300.00
Bonds payable
Long-term account payable
Special accounts payable 33,888,190.41 33,888,190.41 34,223,417.47 34,223,417.47
Projected liabilities 115,105,586.51 115,105,586.51 90,868,730.51 90,868,730.51
Deferred income tax liabilities 8,037,167.56 8,037,167.56 19,037,964.60 19,037,964.60
Other non-current liabilities 28,873,248.33 28,273,248.33 28,257,754.52 28,257,754.52
Total non-current liabilities 201,151,492.81 200,551,492.81 187,635,167.10 187,635,167.10
Total liabilities 3,890,342,698.25 3,416,599,009.32 3,437,367,310.02 3,140,007,418.31
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share
capital) 413,642,949.00 413,642,949.00 413,642,949.00 413,642,949.00
Capital public reserve 597,949,172.60 609,859,286.16 660,287,022.53 672,197,136.09
Less: Inventory shares
Reasonable reserve
Surplus public reserve 246,896,167.23 246,678,001.55 285,107,714.19 284,889,548.51
Provision of general riskHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
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Retained profit 114,266,044.02 108,673,253.75 -34,609,778.15 -38,211,546.96
Balance difference of
foreign currency translation
Total owner’s equity attributable
to parent company 1,372,754,332.85 1,378,853,490.46 1,324,427,907.57 1,332,518,086.64
Minority interests 25,180,500.15 25,138,891.79
Total owner’s equity 1,397,934,833.00 1,378,853,490.46 1,349,566,799.36 1,332,518,086.64
Total liabilities and owner’s
equity 5,288,277,531.25 4,795,452,499.78 4,786,934,109.38 4,472,525,504.95
4.2 Profit statement in the report period
Prepared by Hefei Meiling Co., Ltd. Jan.-Mar. 2010 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Total operating income 1,952,626,496.12 1,665,279,274.13 1,239,373,424.99 941,020,813.35
Including: Operating income 1,952,626,496.12 1,665,279,274.13 1,239,373,424.99 941,020,813.35
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 1,941,511,807.26 1,624,240,108.64 1,233,195,018.48 927,341,202.05
Including: Operating cost 1,450,614,776.56 1,210,953,374.24 896,655,992.86 673,572,487.87
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 7,524,577.35 7,124,933.15 6,938,153.24 6,620,022.47
Sales expenses 442,931,732.22 381,898,666.00 282,704,086.13 213,622,966.35
Administration expenses 36,609,248.69 23,214,398.06 37,549,438.02 24,783,893.14
Financial expenses -1,965,245.78 -1,670,469.67 9,335,929.00 8,643,799.39
Losses of devaluation of
asset 5,796,718.22 2,719,206.86 11,419.23 98,032.83
Add: Changing income of
fair value(Loss is listed with “-”)
Investment income (Loss is
listed with “-”) 82,050,909.75 82,050,909.75
Including: Investment
income on affiliated company and
joint venture
Exchange income (Loss is
listed with “-”)Hefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
10
III. Operating profit (Loss is
listed with “-”) 93,165,598.61 123,090,075.24 6,178,406.51 13,679,611.30
Add: Non-operating income 34,638,666.72 2,010,144.64 1,204,082.91 1,167,514.70
Less: Non-operating expense 324,127.99 312,897.71 41,580.98 7,322.68
Including: Disposal loss of
non-current asset 312,897.71 312,897.71 36,580.98 2,322.68
IV. Total Profit (Loss is listed
with “-”) 127,480,137.34 124,787,322.17 7,340,908.44 14,839,803.32
Less: Income tax 16,774,253.77 16,114,068.42 2,144,899.74 1,926,594.21
V. Net profit (Net loss is listed
with “-”) 110,705,883.57 108,673,253.75 5,196,008.70 12,913,209.11
Net profit attributable to
owner’s equity of parent
company
110,664,275.21 108,673,253.75 5,937,090.76 12,913,209.11
Minority shareholders’ gains
and losses 41,608.36 -741,082.06 0.00
VI. Earnings per share
i. Basic earnings per share 0.2675 0.2627 0.0144 0.0312
ii. Diluted earnings per share 0.2675 0.2627 0.0144 0.0312
VII. Other consolidated income -62,337,849.93 -62,337,849.93 45,315,200.00 45,315,200.00
VIII. Total consolidated income 48,368,033.64 46,335,403.82 50,511,208.70 58,228,409.11
Total consolidated income
attributable to owners of parent
company
48,326,425.28 46,335,403.82 51,252,290.76 58,228,409.11
Total consolidated income
attributable to minority
shareholders
41,608.36 -741,082.06
4.3 Cash flow statement
Prepared by Hefei Meiling Co., Ltd. Jan.-Mar. 2010 Unit: RMB
Amount i Items Consolidation n thiPsa preenrito Cd ompany ConsolAidmatoiounn t in lasPta preenrito Cd o mpany
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor
services
742,252,323.84 598,545,323.14 635,573,537.37 452,089,052.70
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured
savings and investmentHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
11
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 6,229,079.97 3,147,453.85 148,900.57
Other cash received
concerning operating activities 18,520,299.98 6,096,479.87 7,783,965.53 6,154,668.44
Subtotal of cash inflow
arising from operating activities 767,001,703.79 607,789,256.86 643,506,403.47 458,243,721.14
Cash paid for purchasing
commodities and receiving labor
service
530,240,338.28 414,530,449.67 326,653,708.38 306,809,577.51
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 interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
workers 85,632,483.48 70,912,553.67 39,952,534.58 23,375,011.03
Taxes paid 41,604,856.74 36,994,549.32 55,017,858.01 51,841,453.90
Other cash paid concerning
operating activities 201,789,587.42 150,477,626.82 149,005,652.74 132,610,382.45
Subtotal of cash outflow
arising from operating activities 859,267,265.92 672,915,179.48 570,629,753.71 514,636,424.89
Net cash flows arising from
operating activities -92,265,562.13 -65,125,922.62 72,876,649.76 -56,392,703.75
II. Cash flows arising from
investing activities:
Cash received from
recovering investment 4,462,303.03 4,462,303.03
Cash received from
investment income 82,050,909.75 82,050,909.75
Net cash received from
disposal of fixed, intangible and
other long-term assets
1,000.00 1,000.00 1,054,227.64 50,554,227.64
Net cash received from
disposal of subsidiaries and other
units
Other cash received
concerning investing activities 2,630,081.54 1,689,329.25 2,369,845.78 862,333.11
Subtotal of cash inflow from
investing activities 89,144,294.32 88,203,542.03 3,424,073.42 51,416,560.75
Cash paid for purchasing
fixed, intangible and other 12,959,746.11 10,017,881.09 9,396,719.15 6,585,510.60Hefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
12
long-term assets
Cash paid for investment 133,022,800.00 120,000,000.00 45,000,000.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow
from investing activities 145,982,546.11 130,017,881.09 9,396,719.15 51,585,510.60
Net cash flows arising from
investing activities -56,838,251.79 -41,814,339.06 -5,972,645.73 -168,949.85
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 30,000,000.00 30,000,000.00 159,662,683.49 159,662,683.49
Cash received from issuing
bonds
Other cash received
concerning financing activities
Subtotal of cash inflow from
financing activities 30,000,000.00 30,000,000.00 159,662,683.49 159,662,683.49
Cash paid for settling debts 64,000,000.00 64,000,000.00 114,438,740.78 104,438,740.78
Cash paid for dividend and
profit distributing or interest
paying
959,468.70 918,968.70 3,577,606.63 3,232,459.13
Including: Dividend and
profit of minority shareholder
paid by subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow
from financing activities 64,959,468.70 64,918,968.70 118,016,347.41 107,671,199.91
Net cash flows arising from
financing activities -34,959,468.70 -34,918,968.70 41,646,336.08 51,991,483.58
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-710,320.10 -661,584.13 -939,208.74 -853,909.79
V. Net increase of cash and cash
equivalents -184,773,602.72 -142,520,814.51 107,611,131.37 -5,424,079.81
Add: Balance of cash and
cash equivalents at the period
-begin
747,572,445.88 579,447,940.41 412,712,632.56 306,127,639.14
VI. Balance of cash and cash
equivalents at the period -end 562,798,843.16 436,927,125.90 520,323,763.93 300,703,559.33
4.4 Auditor’ report
Auditor’s opinions: Un-auditedHefei Meiling Co., Ltd. The First Quarterly Report 2010 (Full Text)
13
Board of the Directors of
Hefei Meiling Co., Ltd.
April22, 2010
