HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
HEFEI MEILING CO., LTD.
THE THIRD QUARTERLY REPORT FOR 2010
(THE FULL-TEXT)
§1. Important Notes
1.1 The Board of Directors and the Supervisory Committee of Hefei Meiling Co., Ltd. (hereinafter referred to as the Company), along with all its directors, supervisors and senior executives hereby confirm that there are no any important omissions, fictitious statements or serious misleading information 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 Third Quarterly Financial Report 2010 of the Company has not been audited by CPAs.
1.3 Principal of the Company Mr. Zhao Yong, Person in Charge of Accounting Works Mr. Yu Wanchun and Person in Charge of Accounting Organ (Accounting Officer) Mr. Liu Bimin hereby confirm that the Financial Report of the Third Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes:
Unit: RMB
2010.9.30
2009.12.31
Increase/decrease scope (%)
Total assets (RMB)
6,039,005,504.50
4,786,934,109.38
26.16%
Owners’ equities attributable to the shareholders of listed company (RMB)
1,503,205,723.93
1,324,427,907.57
13.50%
Share capital (Share)
413,642,949.00
413,642,949.00
0.00%
Net assets per share attributable to the shareholders of listed company (RMB/Share)
3.63
3.20
13.44%
July-Sep.2010
Increase/decrease over the same period of the last year (%)
Jan.-Sep. 2010
Increase/decrease over the same period of the last year (%)
Total operating income (RMB)
2,322,525,072.79
25.52%
6,898,284,879.75
31.56%
Net profit attributable to the shareholders of listed company (RMB)
79,144,209.52
-47.45%
297,760,905.90
59.35%
Net cash flow arising from operating activities (RMB)
129889461.60
-160.57%
-34,101,760.41
86.61%
Net cash flow arising from operating activities per share (RMB/Share)
0.3140
-160.57%
-0.0824
86.61%
Basic earnings per share (RMB/Share)
0.1914
-47.43%
0.7199
59.38%
Diluted earnings per share (RMB/Share)
0.1914
-47.43%
0.7199
59.38%
Weighted average return on equity (%)
5.39%
-6.93%
21.06%
7.36%
Weighted average return on equity after deducting non-recurring gains and losses (%)
5.11%
0.38%
11.18%
5.14%
1HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
Items of non-recurring gains and losses
Amount from year begin to the end of report period
Remarks
Gains and losses from the disposal of non-current asset
1,741,475.74
Governmental subsidy calculated into current gains and losses, while closely related with the business of the Company, excluding the fixed-amount or fixed-proportion governmental subsidy according to the unified national standard
20,587,313.37
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
116,973,865.41
Other non-operating income and expenditure beside for the aforementioned items
599,930.06
Amount of impact on minority shareholders’ interest.
-167,954.26
Total
139,734,630.32
-
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
68,488
Particulars about the shares held by the top ten shareholders with unrestricted conditions
Full name of shareholder
Unrestricted shares held at period-end
Type of shares
Sichuan Changhong Electric Co., Ltd.
45,641,449
RMB common share
Hefei Xingtai Holding Group Co., Ltd.
32,709,726
RMB common share
Changhong (Hong Kong) Trade Co., Ltd.
17,150,815
Domestically listed foreign share
CAO SHENGCHUN
7,646,069
Domestically listed foreign share
Zhongrong International Trust Co., Ltd. – Zhongrong Construction Bank of China Fortune No.4-001
2,178,499
RMB common share
LONG QIN FANG
2,101,766
Domestically listed foreign share
CHEN YI QING
1,644,639
Domestically listed foreign share
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED
1,376,286
Domestically listed foreign share
China Cinda Asset Management Co., Ltd.
1,302,533
RMB common share
DBS VICKERS (HONG KONG) LTD A/C CLIENTS
1,291,000
Domestically listed foreign 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
Unit: RMB
3.1.1 Particulars about changes in items of balance sheet and explanations of reasons
Items
Amount at period-end
Amount at year-begin
Changed rate
Major causes
Note receivable
1,859,262,891.90
892,748,372.08
108.26%
The sales scale enlarged in this period, and the note of account-returned for selling 2HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
increased.
Account receivable
447,567,249.24
317,114,097.62
41.14%
The sales scale enlarged in this period. Account receivable for good undue increased.
Other account receivable
79,932,379.69
18,325,650.19
336.18%
The export tax rebate of Zhongshan Changhong-subsidiary of the Company that un-received increased and the determine subsidy of air-conditioner’s energy-saving & people-benefiting that un-received increased.
Financial assets available for sale
-
134,011,570.00
-100.00%
All shares of iFLYTEK have been disposed in this period.
Long-term equity investment
17,557,289.77
37,028,371.63
-52.58%
Indirectly held the whole equity of Hefei Meiling Packing Product Co., Ltd. by purchasing Meiling Group, the Meiling Packing added into the consolidated rage that balanced out the items of investment of minority equity held.
Construction in progress
55,434,677.25
8,930,438.02
520.74%
The under-process projects as ice cuber still in construction without capital return.
Goodwill
10,753,394.12
-
-
The differences from equity-purchased amount of Meiling Group larger than its book value of net assets.
Long-term deferred expenses
1,311,972.38
600,000.00
118.66%
Deferred mould expenses increased by consolidation after purchasing Meiling Group in end of the July 2010.
Deferred income tax assets
44,949,032.87
31,965,504.19
40.62%
Accrual of the provision for assets impairment and the predicted expenses of “ten-year free maintenance” of countryside-oriented home appliance, the recognized deferred income tax assets increased.
Short-term loans
333,360,000.00
184,000,000.00
81.17%
Loans increased newly in the end of report period.
Note payable
936,515,244.27
404,691,072.19
131.41%
The un-paid note that undue increased.
Dividend payable
738,695.30
1,217,175.42
-39.31%
Dividend payable of previously year has been paid in this period.
Other current liabilities
-
20,172,100.00
-100.00%
The governmental rewards received in advance last year has been cashed into income this period and partially have been returned to government.
Non-current liabilities due within one year
-
3,000,000.00
-100.00%
Returned the due bank loans.
Tax payable
127,974,780.93
65,662,600.35
94.90%
The moratorium of payable VAT and enterprise income tax.
Predicted liabilities
178,666,622.51
90,868,730.51
96.62%
Accrual the expenses of “ten-year free maintenance”of countryside-oriented home appliance increased in this period.
Deferred income
-
19,037,964.60
-100.00%
The financial assets that measured by fair
3HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
tax liabilities
value decreased for the disposal of iFLYTEK in this period.
Retained profit
300,307,893.19
-34,609,778.15
967.70%
Net profit increased in this period.
Minority equity
17,255,931.67
25,138,891.79
-31.36%
The 10% minority equity of Zhongshan Air-conditioner held by China Minmetals has been purchased.
3.1.2 Particulars about changes in items of profit statement and explanations of reasons
Item
Amount in this period
Amount in same period of last year
Changed rate
Major causes
Total operating income
6,898,284,879.75
5,243,601,241.39
31.56%
Under the promotion of relevant national policies, the Company perfected the products structure, upgrades marketing ability and enlarged the sale scale which correspondingly increased the operating income.
Operating cost
5,209,668,623.39
3,874,797,126.25
34.45%
Increased of sale volume in this period and the cost of raw material of bulk materials increased.
Sales expenditure
1,428,272,370.27
1,081,374,440.26
32.08%
Sale scale enlarged in this period and the predicted of charge for “ten-year free maintenance” of refrigerator for countryside-oriented increased.
Financial expenditure
-11,227,370.55
13,443,452.19
-183.52%
Decreased of interest expenses and discounts for pre-payment for goods received from partial suppliers increased.
Losses of assets impairment
20,971,054.65
11,967,083.29
75.24%
Bad debt provision and inventory depreciation provision that withdrawal according to accounting policy in this period increased.
Non-operating income
128,002,073.65
7,919,100.36
1516.37%
The subsidy of Changhong Air-conditioner for energy-saving & people-benefiting increased.
Total profit
351,513,948.48
221,382,399.27
58.78%
Operating profit increased and the increase of investment profit from disposing partial financial assets available for sale.
Income tax expense
54,249,149.90
35,714,820.02
51.90%
Total taxable profit increased.
Net profit
297,264,798.58
185,667,579.25
60.11%
Operating profit increased and the increase of investment profit from disposing partial financial assets available for sale.
Net profit attributable to owners of the parent company
296,706,124.38
186,855,278.46
58.79%
Operating profit increased and the increase of investment profit from disposing partial financial assets available for sale.
Basic earnings per share
0.72
0.45
60.00%
Operating profit increased and the increase of investment profit from disposing partial financial assets available for sale.
Diluted earnings per share
0.72
0.45
60.00%
Operating profit increased and the increase of investment profit from disposing partial
4HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
financial assets available for sale.
Other consolidated income
-107,555,556.24
39,658,805.45
-371.20%
The financial assets that measured by fair value decreased for the disposal of iFLYTEK in this period.
3.1.3 Particulars about changes in items of cash flow statement and explanations of reasons
Items
Amount in this period
Amount in same period of last year
Changed rate
Major causes
Other cash received concerning operating activities
82,448,095.83
58,833,148.81
40.14%
The subsidy of energy-saving & people-benefiting obtained by Changhong Air-conditioned increased.
Other cash paid concerning operating activities
813,424,303.36
435,901,847.69
86.61%
Cash paid for advertisement and promotion increased in this period.
Cash paid for purchasing fixed assets, intangible assets and other long-term assets
53,273,584.72
23,737,195.51
124.43%
The construction fund for ice cube construction increased.
cash paid for debt repayment
208,000,000.00
334,313,486.31
-37.78%
The repayable bank loans repaid in this period decreased.
Cash paid for dividend and profit distributing or interest paying
8,690,844.35
13,979,675.13
-37.83%
The payable bank interest paid in this period decreased.
3.2 Progress of significant events, their influences, and analysis and explanation of their solutions
3.2.1 Qualified opinion
□Applicable √Inapplicable
3.2.2 Particular about fund offers to controlling shareholders or associated parties and external guarantee that against the regulation.
□Applicable √Inapplicable
3.2.3 Particular about signing and implementation on significant contracts of ordinary management.
√Applicable □Inapplicable
1. Agreement of permission of Use of Trademark among Changhong Air Conditioner, Zhongshan Changhong and Sichuan Changhong
Pursuant to the Company’s business development, upon the approval of 34th of the 6th Session of the Board Meeting, it was agreed to sign the Contract of Permission of Use of Trademark between the controlling subsidiary—Sichuan Changhong Air-conditioner Co., Ltd. (“Changhong Air-conditioner” for short), Zhongshan Changhong Electrical Apparatus Co., Ltd. (“Zhongshan Changhong” for short) respectively and controlling shareholder –Sichuan Changhong Electrical Apparatus Holding Co., Ltd. (“Sichuan Changhong” for short). It was stipulated that: under the condition that Sichuan Changhong is the controlling shareholder of Hefei Meiling Co., 5HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
Ltd. and Hefei Meiling Co., Ltd. the controlling shareholder of Changhong Air Conditioner and Zhongshan Changhong, the owner of the trademark—Sichuan Changhong permitted Changhong Air Conditioner and Zhongshan Changhong free use of the registered trademark “Changhong” in the air conditioner and air clearer. Till recently, all parties performed the agreement strictly.
More details can be found in relevant disclosure information in Semi-Annual Report of 2010 of the Company.
2. Patent Licensing Contract between Zhongshan Changhong and Sichuan Changhong
Pursuant to the Company’s business development of air-conditioner business, upon the approval of the 34th of the 6th Session of the Board Meeting. It was agreed to sign the Patent Licensing Contract between the controlling subsidiary—Zhongshan Changhong Electrical Apparatus Co., Ltd. (“Zhongshan Changhong” for short) and controlling shareholder — Sichuan Changhong Electrical Apparatus Holding Co., Ltd. (“Sichuan Changhong” for short). According to the contract: under the premise of being the controlling shareholder of Hefei Meiling Co., Ltd.—Sichuan Changhong and being the controlling shareholder of Zhongshan Changhong – Hefei Meiling Co., Ltd. The patent owner—Sichuan Changhong authorized four patents in air-conditioner area to Zhongshan Changhong for free used in the statutory validity of patent. Till recently, all parties performed the agreement strictly.
More details can be found in relevant disclosure information in Semi-Annual Report of 2010 of the Company.
3. Approved by the Board of Directors, the Company and China Citic Bank Hefei Shengli Road Sub-branch entered into a contract of maximum guarantee on 8 June 2010. The contract amounting to RMB Ten Million Only with debtor (warrantee) of Zhongke Meiling Hypothermia Technology Co., Ltd.(“Zhongke Meiling” for short). Term of guarantee is from 8 June 2010 to 8 June 2011. The Company will provided relevant guarantee to Zhongke Meiling for serials debts arising from credited business (including but not limited to various bank business such as loans, notes and letter of indemnity) that occurred in the guarantee term. Till recently, the two parties are performed the agreement strictly.
4. Approved by the Board of Directors, the Company and Huishang Bank Hefei Dadongmen Sub-branch entered into a guarantee contract of maximum mortgage for bank acceptance on 1 August 2010. The contract amounting to RMB Eight Million Only with debtor (warrantee) of Zhongke Meiling Hypothermia Technology Co., Ltd.(“Zhongke Meiling” for short). Term of guarantee is from 1 August 2010 to 1 August 2011. The Company will provided relevant guarantee to Zhongke Meiling for serials debts arising from credited business of bank acceptance that occurred in the guarantee term. Till recently, the two parties are performed the agreement strictly.
5. Approved by the Board of Directors, the Company and Huishang Bank Hefei Dadongmen Sub-branch entered into a contract of maximum mortgage for RMB loans on 1 August 2010. The contract amounting to RMB Twelve Million Only with debtor (warrantee) of Zhongke Meiling Hypothermia Technology Co., Ltd.(“Zhongke Meiling” for short). Term of guarantee is from 1 August 2010 to 1 August 2011. The Company will provided relevant guarantee to Zhongke Meiling for serials debts arising from loan business that occurred in the guarantee term. Till recently, the two parties are performed the agreement strictly.
6. Approved by the Board of Directors, the Company and ICBC Mianyang Branch entered into a contract of maximum guarantee on 1 June 2010. The contract amounting to RMB Eighty Million Only with debtor (warrantee) of Sichuan Changhong Air-conditioner Co., Ltd. (“Changhong Air-conditioner” for short). Term of guarantee is from 1 June 2010 to 31 May 2011. The Company will provided relevant guarantee to Sichuan Changhong for serials debts arising from loan business that occurred in the guarantee term. Till recently, the two parties are performed the agreement strictly.
7. On 13 September 2010, the Company and Zhongke Meiling Hypothermia Technology Co., Ltd.(“Zhongke Meiling” for short) entered into a contract of Counter-guarantee suretyship which was un-conditionally, irrevocable and joint liability with guarantor as the only one beneficiary. Agreement that the Zhongke Meiling, as the guarantor of counter-guarantee, provided relevant counter-guarantee with its owned assets voluntary to the Company (guarantor) for RMB Thirty Million Only bank credit guarantee offered. Till recently, the two parties are performed the agreement strictly.
8.Before the agreement on transferring of 100% equity of Hefei Meiling Group Holding Co., Ltd. (“Meiling Group” for short) from the Company, Meiling Group have been provided totaling RMB 176.85 million guarantee for its subordinate holding and joint-stock subsidiaries. Among which, RMB 52.8 million guarantee was provided to other subsidiaries that beyond the assts’ transfer range of this time. Currently, Xingtai Holding Group Co., Ltd. still in the
6HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
process of changing procedure for guarantee body. Meiling Group will release the guarantee for this part after changed. Thereto, RMB 124.05 million guarantees were provided to subsidiaries (that is the indirectly holding company) that within the assets’ transfer range this time from Meiling Group. Among which, RMB 11 million guarantee was provided to Hefei Meiling Appliance Industry &Commercial Co., Ltd.; RMB 24 million guarantee was provided to Meiling Yingkaite Appliance (Hefei) Co., Ltd.; RMB 2 million was provided to Hefei Yingkaite Electrical Apparatus Co., Ltd.; RMB 48 million was provided to Hefei Packing Products Co., Ltd.; RMB 3 million was offered to Hefei Meiling Environmental Packing Materials Co., Ltd.; RMB 27.05 million was offered to Hefei Meiling Nonferrous Metals Products Co., Ltd. and RMB 9 million was offered to Hefei Meiling Fine Tube Industry Co., Ltd.
3.2.4 Other
√Applicable □Inapplicable
1. Particular about 2010 non-public share offering
Pursuant to the development strategy and operation development, and upon the approval of Board of Directors’ Meeting and Shareholders’ General Meeting, the Company planned to raise funds by non-public offering to specific objects including the first largest shareholder (Sichuan Changhong) for investment in projects as deluxe refrigerator production based, capacity extension of energy-saving-and-environment-protection refrigerator and ice cuber and supplementation to current capital. Net of raised funds in the non-public offering was expected no more than RMB 12 hundred million with no more than ten specific issuing objects including Sichuan Changhong, no less than 50 million shares (50 million shares included) and yet no more than 130 million shares (130 million shares included)of which Sichuan Changhong was to subscribe for no more than 40 million shares with RMB 4 hundredmillion in cash, and offering price no less than RMB10.18 each. In the last 15 days of June 2010, the Company presented the application material for the non-public offering to CSRC and on 1 July 2010, the CSRC provided the acceptanceadvice. More details can be found in relevant disclosure information in Semi-Annual Report of 2010 of the Company.
2.Particular about assets acquisition
2.1 Changhong Air Conditioner Bidding for 10% Equity in Zhongshan Changhong
Pursuant to the development strategy of white appliance industry, the Company held the Board of Directors Meeting on 26 January 2010 for approving the Proposal of Changhong Air Conditioner Bidding for 10% Equityin Zhongshan Changhong, namely agreed the Company’s participation via its wholly-owned subsidiary —Sichuan Changhong Air Conditioner Company., Ltd. (hereafter referred as Changhong Air Conditioner) in the open selling of 10% equity in Zhongshan Changhong by China Minmetals. Changhong Air Conditioner transferred partial equity by agreement with RMB 11.4128 million finally. On 14 May 2010, Zhongshan Changhong have finished the changing register of Industry and Commercial for transfer 10% equity of Changhong Air Conditioner held by China Minmetals. More details can be found in relevant disclosure information in Semi-Annual Report of 2010 of the Company.
2.2 Agreement transfer of 100% state-owned property in Hefei Meiling Co., Ltd.
Pursuant to the Company’s development program and need of uniform maintenance and management of “Meiling”brand. On 25 March 2010 and on 9 April 2010, the Board of Director’s Meeting and Shareholders’ General Meeting approved the proposal of Transfer of 100% state-owned property in Hefei Meiling Company Limited. Till recently, Xingtai Holding has performed the capital-reduction procedure of Meiling Group after partial assets liability separation. On 28 July 2010, the changing register procedures of Industry and Commercial on the share transferring of Meiling Group have been finished. After transferred procedure, the Company held 100% equity of thenew Meiling Group that separated partial assets liabilities. More details can be found in relevant disclosureinformation in Semi-Annual Report of 2010 of the Company.
3. Investment construction projects
3.1 Production base of Athena deluxe refrigerator project
Pursuant to the development strategy, the Company plans to invest in the project of Athena deluxe refrigerator production base with the funds that raised from 2010 non-public share offering. Totaling RMB 793.3038 million( circulating capital included) used for investment, and annual productivity of 2 million refrigerator with 220L-300L, tri-doors above 300L, multi-doors and side-by-side will form after completed construction. The project has been filed by Hefei Development and Reform Commission and has been approved by the Hefei Environmental Protection Bureau. Till recently, the Company put its self-owned capital into the project for construction firstly and in the field leveling of the construction-used land recently. The project remains no investment profit for in the
7HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
process of construction stage.
3.2 Ice Cuber Capacity Extension
Pursuant to the development strategy, the Company plans to invest in the project of ice cuber capacity extension with the funds that raised from 2010 non-public share offering. Totaling RMB375.1778 million( circulating capital included) used for investment, and annual productivity of 0.6 million ice cuber with no more than 300L capacity and annual productivity of 0.6 million ice cuber with more than 300L capacity will formed after completed construction. Totaling 1.2 million ice cuber will produce annually. The project has been filed by Hefei Development and Reform Commission and has been approved by the Hefei Environmental Protection Bureau. Till recently, the Company put its self-owned capital into the project firstly. Land and buildings construction have been completed 80%, 90% of the inquiring on equipment assets, bidding and purchase have been finished, general progress are under the procedure of projects, technical equipment is in the process of arrangement recently. The project remains no investment profit for in the process of construction stage.
3.3 Capacity Extension of Environment Protection and Energy Saving Refrigerator
Pursuant to the development strategy, the Company plans to invest in the project of capacity extension of environment protection and energy saving refrigerator with the funds that raised from 2010 non-public share offering. Totaling RMB118.0093 million (circulating capital included) used for investment. The implementation body including the Company and its subordinate subsidiary Mianyang Meiling Cooling Co., Ltd. (“Mianyang Meiling” for short). The project construction including the technical reform on production lines of 0.6 million environmentally energy saving refrigerator of Mianyang Meiling Phase I, formulated a double-shift productivity. At the same time, constructed a new production line with annual productivity of 0.6 million refrigerator (double-shift) and finally formed the production base of environmentally energy saving refrigerator with annual productivity of 1.2 million refrigerator (double-shift). The project has been filed by China (Mianyang) Technology Zone Management Commission Economic Development Bureau and has been approved by the Mianyang Environmental Protection Bureau. Till recently, the Company put its self-owned capital into the project firstly, inquiring on equipment assets, bidding and purchase of the phase I project have been finished basically, phase II is in the process. The project remains no investment profit for in the process of construction stage.
More details can be found in relevant disclosure information in Semi-Annual Report of 2010 of the Company.
3.3 Implementations of commitments by the Company, shareholders and actual controller
√Applicable □Inapplicable
Commitments
Promiser
Content of commitments
Implementation
Commitments for Share Merger Reform
Sichuan Changhong, Changhong Group and Meiling Group
Legal commitments and additional consideration commitment
Had accomplished implementation.
Commitments for share restricted
Sichuan Changhong, Changhong Group and Meiling Group
Legal commitments and additional consideration commitment
Had accomplished implementation.
Commitments made in Acquisition Report or Reports on Change in Interests
Sichuan Changhong
Avoidance of competition between same trade
Strictly performed.
Commitments made in assets acquisition
The Company
State-owned property of Meiling Group assigning
Strictly performed.
Commitments made in private share-issuing plan
Sichuan Changhong
Reduced, avoidance and regulated competitions between same trade and related transaction;
Strictly performed.
8HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
leasing the land and building to Changhong Air-conditioner for a long-term and transfer land and buildings to Changhong Air-conditioner after finished the Assets Property Certificate; supervising the subsidiary—Minsheng Logistic for leasing the land and buildings to Mianyang Meiling for a long-term and transfer land and buildings to Mianyang Meiling after finished the Assets Property Certificate.
Other commitments (including additional commitments)
Sichuan
Changhong
Property rights of air-conditioner assets transfer
Strictly performed.
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 Particulars about the other significant events which needed explanations
3.5.1 Particular about security investment
√Applicable □Inapplicable
Unit: RMB
No.
Securities kinds
Stock code
Short form of the stock
Initial investment amount
(RMB)
Amount held in period-end
(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
18,960,000.00
0
0.00
0.00%
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
-
-
-
-
116,973,865.41
Total
18,960,000.00
-
0.00
100%
116,973,865.41
Explanation on securities investment
3.5.2 Activities on receiving research, communication and interview in the report period
Date
Place
Way
The received
Contents discussed and 9HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
parties
materials supplied
13 January 2010
Conference room of the Company
Spot investigation
Everbright Securities
Situation about production & operational of the Company
21 January 2010
Conference room of the Company
Spot investigation
UBS Securities
Situation about production & operational of the Company
23 March 2010
Conference room of the Company
Spot investigation
GF Fund
Situation about production & operational of the Company
25 March 2010
Conference room of the Company
Spot investigation
Shenyin & Wanguo
Situation about production & operational of the Company
8 April 2010
Conference room of the Company
Spot investigation
investor of QFFI Everest Capital
Situation about production & operational of the Company
28 April 2010
Conference room of the Company
Spot investigation
Shenyin & Wanguo,USB International Fund and Citic Securities etc.
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
7 May 2010
Conference room of the Company
Spot investigation
Everbright Securities and Haitong Securities
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
21 May 2010
Conference room of the Company
Spot investigation
GUOTAI AMC
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
8 June 2010
Conference room of the Company
Spot investigation
Changsheng Fund and Guoyuan Securities
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
18 June 2010
Conference room of the Company
Spot investigation
Securities Times
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
15 July 2010
Conference room of the Company
Spot investigation
Fullgoal Fund andChang Xin Fund
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
4 August 2010
Conference room of the Company
Spot investigation
Shanghai Rosefinch Investment Co., Ltd.
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
9 August 2010
Conference room of the Company
Spot investigation
Changjiang Securities
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
12 August 2010
Conference room of the Company
Spot investigation
Citic Securities
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
19 August 2010
Conference room of the Company
Spot investigation
Nanjing Securities
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
20 August 2010
Conference room of the Company
Spot investigation
CICC and Hong Kong Huili Consultant Co., Ltd.
Situation about production & operational of the Company and relevant situation concerning private share-issuing plan of 2010.
15 September
Conference room of
Spot investigation
Dongfang
Situation about production &
10HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
2010
the Company
Securities Asset Co., Ltd.
operational of the Company and relevant situation concerning private share-issuing plan of 2010.
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about the positions of derivatives investment at the end of report period
□Applicable √Inapplicable
§4 Appendix
4.1 Balance sheet
Prepared by Hefei Meiling Co., Ltd. 30 September 2010 Unit: RMB
Balance at period-end
Balance at year-begin
Items
Consolidation
Parent Company
Consolidation
Parent Company
Current assets:
Monetary funds
660,352,658.70
457,898,642.53
747,572,445.88
579,447,940.41
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
1,859,262,891.90
1,751,432,540.30
892,748,372.08
842,917,722.71
Accounts receivable
449,074,079.98
314,281,958.55
317,114,097.62
201,332,264.42
Accounts paid in advance
139,627,195.62
146,775,193.18
109,721,377.94
134,789,646.12
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables
79,932,379.69
12,096,122.25
18,325,650.19
13,900,993.24
Purchase restituted finance asset
Inventories
1,132,849,021.55
799,623,840.02
1,052,702,140.26
806,388,957.97
Non-current asset due within one year
Other current assets
Total current assets
4,321,098,227.44
3,482,108,296.83
3,138,184,083.97
2,578,777,524.87
Non-current assets:
Granted loans and advances
Finance asset available for sales
134,011,570.00
134,011,570.00
Held-to-maturity investment
Long-term account receivable
12,647,612.10
12,647,612.10
Long-term equity investment
17,557,289.77
656,989,796.91
37,028,371.63
557,185,228.79
11HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
Investment real estate
13,919,561.04
9,884,110.96
14,423,395.21
10,136,925.05
Fixed assets
871,494,014.65
570,032,648.88
802,671,721.93
592,203,832.78
Construction in progress
55,434,677.25
63,971,478.86
8,930,438.02
19,652,067.31
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets
673,917,260.16
533,684,121.51
603,705,411.46
550,011,819.36
Expense on Research and Development
16,148,487.33
15,413,612.97
Goodwill
10,753,394.12
Long-term expenses to be apportioned
1,311,972.38
600,000.00
Deferred income tax asset
44,723,008.26
43,052,026.97
31,965,504.19
30,546,536.79
Other non-current asset
Total non-current asset
1,717,907,277.06
1,890,261,796.19
1,648,750,025.41
1,893,747,980.08
Total assets
6,039,005,504.50
5,372,370,093.02
4,786,934,109.38
4,472,525,504.95
Current liabilities:
Short-term loans
333,360,000.00
308,860,000.00
184,000,000.00
184,000,000.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable
936,515,244.27
626,910,000.00
404,691,072.19
362,864,725.10
Accounts payable
1,501,064,273.21
1,300,078,820.23
1,157,326,858.96
963,182,987.91
Accounts received in advance
617,852,748.72
552,694,754.99
718,021,736.69
703,731,317.30
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable
55,584,832.88
46,384,723.76
70,861,486.07
58,091,040.19
Taxes payable
128,200,805.54
124,938,549.65
65,662,600.35
60,760,397.19
Interest payable
Dividend payable
738,695.30
738,695.30
1,217,175.42
1,217,175.42
Other accounts payable
689,122,442.68
647,324,994.72
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 one year
3,000,000.00
Other current liabilities
20,172,100.00
20,172,100.00
Total current liabilities
4,262,439,042.60
3,607,930,538.65
3,249,732,142.92
2,952,372,251.21
Non-current liabilities:
12HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
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
33,224,901.49
33,224,901.49
34,223,417.47
34,223,417.47
Projected liabilities
178,666,622.51
178,666,622.51
90,868,730.51
90,868,730.51
Deferred income tax liabilities
19,037,964.60
19,037,964.60
Other non-current liabilities
28,965,982.30
28,365,982.30
28,257,754.52
28,257,754.52
Total non-current liabilities
256,104,806.30
255,504,806.30
187,635,167.10
187,635,167.10
Total liabilities
4,518,543,848.90
3,863,435,344.95
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
541,303,932.99
564,641,579.85
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 risk
Retained profit
301,362,674.71
283,972,217.67
-34,609,778.15
-38,211,546.96
Balance difference of foreign currency translation
Total owner’s equity attributable to parent company
1,503,205,723.93
1,508,934,748.07
1,324,427,907.57
1,332,518,086.64
Minority interests
17,255,931.67
25,138,891.79
Total owner’s equity
1,520,461,655.60
1,508,934,748.07
1,349,566,799.36
1,332,518,086.64
Total liabilities and owner’s equity
6,039,005,504.50
5,372,370,093.02
4,786,934,109.38
4,472,525,504.95
4.2 Profit statement in the report period
Prepared by Hefei Meiling Co., Ltd. July-Sep. 2010 Unit: RMB
Amount in this period
Amount in last period
Items
Consolidation
Parent Company
Consolidation
Parent Company
I. Total operating income
2,322,525,072.79
2,012,404,227.74
1,850,351,436.24
1,652,197,274.25
Including: Operating income
2,322,525,072.79
2,012,404,227.74
1,850,351,436.24
1,652,197,274.25
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost
2,265,061,123.07
1,924,266,450.23
1,781,602,800.89
1,578,813,302.17
Including: Operating cost
1,761,569,892.57
1,521,842,183.52
1,319,548,478.76
1,169,429,381.82
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
13HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras
10,719,145.91
9,615,512.39
8,255,314.86
7,469,453.08
Sales expenses
441,873,131.43
361,018,674.62
414,804,568.19
370,302,339.99
Administration expenses
53,766,926.83
31,215,187.99
43,016,011.83
32,622,568.59
Financial expenses
-6,802,328.40
-4,544,898.40
1,285,348.31
2,933,235.35
Losses of devaluation of asset
3,934,354.73
5,119,790.11
-5,306,921.06
-3,943,676.66
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”)
3,276,460.70
3,042,080.77
107,977,317.95
101,343,198.10
Including: Investment income on affiliated company and joint venture
101,146.45
234,935.78
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”)
60,740,410.42
91,179,858.28
176,725,953.30
174,727,170.18
Add: Non-operating income
33,228,896.14
1,527,237.50
1,994,881.73
1,600,547.88
Less: Non-operating expense
189,747.84
11,571.65
600,409.54
475,695.43
Including: Disposal loss of non-current asset
11,571.65
11,571.65
51,102.33
29,731.44
IV. Total Profit (Loss is listed with “-”)
93,779,558.72
92,695,524.13
178,120,425.49
175,852,022.63
Less: Income tax expense
14,399,804.07
13,612,328.50
27,975,377.22
28,850,649.31
V. Net profit (Net loss is listed with “-”)
79,379,754.65
79,083,195.63
150,145,048.27
147,001,373.32
Net profit attributable to owner’s of parent company
79,144,209.52
79,083,195.63
150,600,188.62
147,001,373.32
Minority shareholders’ gains and losses
235,545.13
-455,140.35
VI. Earnings per share:
(I). Basic earnings per share
0.1914
0.1912
0.3641
0.3554
(II). Diluted earnings per share
0.1914
0.1912
0.3641
0.3554
VII. Other consolidated income
-2,104,418.50
-2,104,418.50
-14,089,542.17
-14,089,542.17
VIII. Total consolidated income
77,275,336.15
76,978,777.13
136,055,506.10
132,911,831.15
Total consolidated income attributable to owners of parent company
77,039,791.02
76,978,777.13
136,510,646.45
132,911,831.15
Total consolidated income attributable to minority shareholders
235,545.13
-455,140.35
14HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
4.3 Profit statement from year-begin to the end of report period
Prepared by Hefei Meiling Co., Ltd. Jan.-Sep. 2010 Unit: RMB
Amount in this period
Amount in last period
Items
Consolidation
Parent Company
Consolidation
Parent Company
I. Total operating income
6,898,284,879.75
5,757,060,765.55
5,243,601,241.39
4,260,573,850.48
Including: Operating income
6,898,284,879.75
5,757,060,765.55
5,243,601,241.39
4,260,573,850.48
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost
6,813,465,081.14
5,584,362,863.40
5,147,658,310.64
4,161,689,651.75
Including: Operating cost
5,209,668,623.39
4,244,090,447.13
3,874,797,126.25
3,063,041,501.09
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
29,161,232.19
26,921,112.52
27,485,915.80
25,853,053.74
Sales expenses
1,428,272,370.27
1,215,466,920.70
1,081,374,440.26
944,476,597.81
Administration expenses
138,126,001.93
89,487,388.55
138,590,292.85
103,416,672.91
Financial expenses
-11,227,370.55
-7,037,974.45
13,443,452.19
14,880,778.32
Losses of devaluation of asset
19,464,223.91
15,434,968.95
11,967,083.29
10,021,047.88
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”)
140,917,222.76
140,682,842.83
118,412,775.48
111,778,655.63
Including: Investment income on affiliated company and joint venture
-1,637,852.21
-1,504,062.88
146,972.66
146,972.66
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”)
225,737,021.37
313,380,744.98
214,355,706.23
210,662,854.36
Add: Non-operating income
128,002,073.65
23,037,970.03
7,919,100.36
6,337,360.07
Less: Non-operating expense
718,315.80
496,808.23
892,407.32
592,248.50
Including: Disposal loss of non-current asset
525,192.34
496,808.23
183,508.08
127,878.89
IV. Total Profit (Loss is listed with “-”)
353,020,779.22
335,921,906.78
221,382,399.27
216,407,965.93
Less: Income tax
54,701,199.12
51,949,689.11
35,714,820.02
32,853,873.95
15HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
expense
V. Net profit (Net loss is listed with “-”)
298,319,580.10
283,972,217.67
185,667,579.25
183,554,091.98
Net profit attributable to owner’s of parent company
297,760,905.90
283,972,217.67
186,855,278.46
183,554,091.98
Minority shareholders’ gains and losses
558,674.20
-1,187,699.21
VI. Earnings per share:
(I). Basic earnings per share
0.7199
0.6865
0.4517
0.4438
(II). Diluted earnings per share
0.7199
0.6865
0.4517
0.4438
VII. Other consolidated income
-107,555,556.24
-107,555,556.24
39,658,805.45
39,658,805.45
VIII. Total consolidated income
190,764,023.86
176,416,661.43
225,326,384.70
223,212,897.43
Total consolidated income attributable to owners of parent company
190,205,349.66
176,416,661.43
226,514,083.91
223,212,897.43
Total consolidated income attributable to minority shareholders
558,674.20
-1,187,699.21
4.4 Cash flow statement from year-begin to the end of report period
Prepared by Hefei Meiling Co., Ltd. Jan.-Sep. 2010 Unit: RMB
Amount in this period
Amount in last period
Items
Consolidation
Parent Company
Consolidation
Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services
2,992,956,010.95
2,240,808,735.31
2,287,897,925.04
1,708,665,841.74
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Net increase of disposal of transaction financial asset
Cash received from interest, commission charge and commission
Net increase of capital borrowed
Net increase of returned business capital
16HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
Write-back of tax received
12,350,382.54
3,147,453.85
15,470,692.55
82,579.91
Other cash received concerning operating activities
82,448,095.83
11,408,189.52
58,833,148.81
42,225,929.15
Subtotal of cash inflow arising from operating activities
3,087,754,489.32
2,255,364,378.68
2,362,201,766.40
1,750,974,350.80
Cash paid for purchasing commodities and receiving labor service
1,797,490,929.02
1,316,531,343.95
1,715,189,724.34
1,162,051,735.69
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
256,125,936.85
154,808,563.05
198,234,092.73
134,237,601.64
Taxes paid
254,815,080.50
231,947,561.89
267,476,089.83
255,455,617.08
Other cash paid concerning operating activities
813,424,303.36
623,907,325.26
435,901,847.69
342,425,305.56
Subtotal of cash outflow arising from operating activities
3,121,856,249.73
2,327,194,794.15
2,616,801,754.59
1,894,170,259.97
Net cash flows arising from operating activities
-34,101,760.41
-71,830,415.47
-254,599,988.19
-143,195,909.17
II. Cash flows arising from investing activities:
Cash received from recovering investment
7,356,806.06
7,091,806.06
Cash received from investment income
142,186,905.71
142,186,905.71
118,265,802.82
118,265,802.82
Net cash received from disposal of fixed, intangible and other long-term assets
90,951.53
42,781.00
6,089,446.27
55,740,619.49
Net cash received from disposal of subsidiaries and other units
6,391.35
2,018,786.45
Other cash received concerning investing activities
10,065,835.63
26,635,332.62
190,139,436.98
2,058,202.74
Subtotal of cash inflow from investing activities
159,700,498.93
175,956,825.39
314,501,077.42
178,083,411.50
Cash paid for purchasing fixed, intangible and other long-term assets
53,273,584.72
57,849,328.94
23,737,195.51
15,191,398.81
Cash paid for
17HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
investment
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
271,597,181.63
313,200,000.00
45,000,000.00
Other cash paid concerning investing activities
2,499,344.00
Subtotal of cash outflow from investing activities
324,870,766.35
373,548,672.94
23,737,195.51
60,191,398.81
Net cash flows arising from investing activities
-165,170,267.42
-197,591,847.55
290,763,881.91
117,892,012.69
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
328,860,000.00
328,860,000.00
313,888,346.48
313,888,346.48
Cash received from issuing bonds
Other cash received concerning financing activities
99,000,000.00
Subtotal of cash inflow from financing activities
328,860,000.00
427,860,000.00
313,888,346.48
313,888,346.48
Cash paid for settling debts
208,000,000.00
204,000,000.00
334,313,486.31
334,313,486.31
Cash paid for dividend and profit distributing or interest paying
8,690,844.35
8,257,017.35
13,979,675.13
13,008,927.63
Including: Dividend and profit of minority shareholder paid by subsidiaries
Other cash paid concerning financing activities
67,320,000.00
Subtotal of cash outflow from financing activities
216,690,844.35
279,577,017.35
348,293,161.44
347,322,413.94
Net cash flows arising from financing activities
112,169,155.65
148,282,982.65
-34,404,814.96
-33,434,067.46
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate
-116,915.00
-410,017.51
-189,739.81
-169,372.23
V. Net increase of cash and cash equivalents
-87,219,787.18
-121,549,297.88
1,569,338.95
-58,907,336.17
Add: Balance of cash and cash equivalents at the period -begin
747,572,445.88
579,447,940.41
409,853,966.49
306,127,639.14
VI. Balance of cash and cash equivalents at the period -end
660,352,658.70
457,898,642.53
411,423,305.44
247,220,302.97
18HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2010(FULL-TEXT)
4.5 Auditor’ report
Auditor’s opinions: Un-audited
Legal Representative: Zhao Yong
Board of the Directors of
Hefei Meiling Co., Ltd.
October 22, 2010
19
