Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Hefei Meiling Co., Ltd.
The First Quarterly Report 2011
(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 2011 has not been audited by CPAs.
1.3 Principal of the Company Mr. Zhao Yong, Chairman of the Company Mr. Wang 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
Changes of
At the end of the At the period-end of
increase/decrease
report period the last year
(%)
Total assets (RMB) 7,691,473,906.97 7,116,164,154.58 8.08%
Owners’ equity attributable to
shareholders of the listed company 2,755,404,878.83 2,717,294,371.76 1.40%
(RMB)
Share capital (Share) 530,374,449.00 530,374,449.00 0.00%
Net asset per share attributable to
shareholders of listed company 5.1952 5.1234 1.40%
(RMB/Share)
Changes of
The same period of
In the report period increase/decrease
last year
(%)
Total operating income (RMB) 2,214,478,744.14 1,952,626,496.12 13.41%
Net profit attributable to shareholders
38,110,507.07 110,664,275.21 -65.56%
of the listed company (RMB)
Net cash flow arising from operating
-420,571,347.68 -92,265,562.13 355.83%
activities (RMB)
Net cash flow arising from operating
-0.79 -0.22 260.44%
activities per share (RMB/Share)
Basic earnings per share (RMB/Share) 0.0719 0.2675 -73.12%
Diluted earnings per share
0.0719 0.2675 -73.12%
(RMB/Share)
Weighted average return on equity (%) 1.39% 8.21% -6.82%
Weighted average return on equity
after deducting non-recurring gains 1.34% 1.12% 0.22%
and losses (%)
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Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Items of non-recurring gains and losses
√ Applicable □ Inapplicable
Unit: RMB
Remarks (If
Items of non-recurring gains and losses Amount
applicable)
Gains and losses from the disposal of non-current
-398,236.70
assets
Governmental subsidy reckoned into current gains
and losses, but closely relevant to the Company’s
business except for the governmental subsidy 2,112,246.88
enjoyed in quota or ration according to the national
general standards
Other non-operating income and expenditure except
8,524.28
for the aforementioned items
Influenced amount of minority shareholders’ equity -69,544.37
Influenced amount of income tax -221,869.85
Total 1,431,120.24 -
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
54,619
at the end of report period
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Amount of tradable shares with
Full name of shareholder unrestricted conditions held at Type of shares
the end of report period
Sichuan Changhong Electric Co.,
74,491,952 RMB common share
Ltd
Hefei Xingtai Holding Group Co.,
32,709,726 RMB common share
Ltd
Changhong (Hong Kong) Trade Co., Domestically listed foreign
17,150,815
Ltd. share
China Pacific Life Insurance Co.,
11,590,130 RMB common share
Ltd. – dividends – personal dividend
GUOTAI JUNAN
Domestically listed foreign
SECURITIES(HONGKONG) 11,422,282
share
LIMITED
Domestically listed foreign
CAO SHENGCHUN 8,210,328
share
Donghai Securities Co., Ltd. 7,163,068 RMB common share
China Pacific Life Insurance Co.,
Ltd. –traditional – common 5,324,865 RMB common share
insurance products
Founder Securities Co., Ltd. 4,181,932 RMB common share
Donghai Securities – Bank of
Communication – Donghai
3,784,213 RMB common share
Securities Stable Value-Added
Integrity Assets Management Plan
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Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Inapplicable
3.1.1 Changes and reasons for the items in balance sheet
Balance at Balance at Changes
Item Reasons
period-end year-begin scope
Sales enlarged in the period,
Note
1,755,085,769.69 1,194,506,906.44 46.93% the recovered notes for sales
receivable
increased
Sales enlarged in the period,
Account
503,097,200.48 372,563,010.12 35.04% the undue account receivable
receivable
for goods increased
The capacity expansion for
Construction
118,561,350.03 75,179,300.94 57.70% ice box still in construction
in process
without capital return yet
The expenses of R&D on air
conditioner increased from
Development
20,780,108.59 13,505,659.94 53.86% Sichuan Changhong Air
expenditure
Conditioner Co., Ltd.,
subsidiary of the Company
Wages The year-end reward of 2010
67,391,412.38 97,284,277.48 -30.73%
payable was paid for employees
The dividends to
shareholders distributed for
2010 of Chaohu Meiling
Dividend
1,333,408.69 738,695.30 80.51% Apparatus Marketing Co.,
payable
Ltd., a sub sub-company of
the Company, have not been
done.
The Company changes its
marketing mode and set up
Minority
sub sub-marketing company
shareholders’ 62,571,172.50 28,895,887.29 116.54%
successively which increased
equity
the minority shareholders’
equity.
3.1.2 Changes and reasons for the items in profit statement
Amount at
Amount at Changes
Item same period of Reasons
this period scope
last year
The VAT paid less than same
Business tax
4,629,805.23 7,524,577.35 -38.47% period of last year, corresponding
and surcharge
tax and surcharge decreased.
Mainly because the Meiling
Group and its subordinate
Administrative
62,144,428.52 36,609,248.69 69.75% subsidiary were consolidated in
expenses
the consolidation statement in this
period.
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Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Mainly because the decrease of
Financial interest expenditure and the cash
-7,006,958.93 -1,965,245.78 256.54%
expense discount transfer from suppliers
increased
Resulted from the decrease of bad
debt provision and depreciation
provision from inventory that
withdrawal accordance with the
Loss of assets Accounting Standards for
2,024,454.30 5,796,718.22 -65.08%
impairment Enterprise, Accounting policy of
the Company and actual situation
of the account receivable and
inventory of the Company in this
period
There have investment income
from selling the financial assets
Investment
available for sale—IFLYTEK
income(loss 235,864.47 82,050,909.75 -99.71%
shares obtained in same period of
listed with “-“)
last year, but no such kind of
income obtained in this period
Obtained investment income from
selling the financial assets
available for sale while no such
Operating
46,547,679.12 93,165,598.61 -50.04% income obtained in same period
profit
of this period; meanwhile, the
soaring raw materials results in
the down of gross profit
Received no government grants
Non-operating for energy-saving and
2,303,381.36 34,638,666.72 -93.35%
income civil-benefit policy for air
conditioner within the period
Due to the losses from disposal of
Non-operating
580,846.90 324,127.99 79.20% discard fixed assets increased in
expenditure
this period
Loss from
disposal of Same as “Non-operating
446,994.83 312,897.71 42.86%
non-current expenditure”
assets
Total profit 48,270,213.58 127,480,137.34 -62.14% Same as “Operating profit”
Due to the decrease of payable
Income tax 9,519,588.87 16,774,253.77 -43.25%
tax
Net profit 38,750,624.71 110,705,883.57 -65.00% Same as “Operating profit”
Net profit
attributable to
38,110,507.07 110,664,275.21 -65.56% Same as “Net profit”
owners’ of
parent company
The Company changes its
Minority
640,117.64 41,608.36 1438.44% marketing mode and set up sub
interests
sub-marketing company
4
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
successively which increased the
interest shared by minority
shareholders.
Total share capital of the
Company increased from the
newly shares listing; furthermore,
the net profit decreased because
no income from selling financial
Basic earnings
0.0719 0.2675 -73.12% assets available for sale, soaring
per share
raw materials and received no
government grants for
energy-saving and civil-benefit
policy for air conditioner within
the period.
Diluted
Same as “Basic earnings per
earnings per 0.0719 0.2675 -73.12%
share”
share
Obtained investment income from
selling the financial assets
Other
available for sale at same period
comprehensive - -62,337,849.93 -100.00%
of last year while no such income
income
obtained in same period of this
period
3.1.3 Changes and reasons for the items in cash flow statement
Amount at
Amount at this Changes
Item same period of Reasons
period scope
last year
Cash
received
from selling
Sales enlarged in the period and the
commodities
972,106,840.66 742,252,323.84 30.97% note receivable consignment comes
and
due.
providing
labor
services
The export tax rebate received by
Return taxes
16,322,359.55 6,229,079.97 162.03% parent company and Zhongshan
received
Changhong increased.
Other cash
Received no government grants for
received
energy-saving and civil-benefit
concerning 5,537,314.80 18,520,299.98 -70.10%
policy for air conditioner within the
operating
period
activities
Cash paid
for
Sales enlarged in the period which
purchasing
971,309,670.22 530,240,338.28 83.18% broaden the purchasing business
commodities
and the note payable paid on due.
and
receiving
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Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
labor service
Cash paid
Year-end reward of 2010 were paid
to/for staff 153,323,013.85 85,632,483.48 79.05%
to employee
and workers
Cash
received
from - 4,462,303.03 -100.00% No investment return in this period
recovering
investment
Cash
received No investment income from
from 514,300.00 82,050,909.75 -99.37% disposal of financial assets
investment available for sale in this period.
income
Net cash
received
from
disposal of
Disposal part of the discard fixed
fixed, 1,112,104.15 1,000.00 111110.42%
assts
intangible
and other
long-term
assets
Other cash
received
The interest income and project
concerning 3,506,000.97 2,630,081.54 33.30%
deposit received increased
investing
activities
Cash paid
for
purchasing The investment increase in
fixed, production base project for the
36,146,666.52 12,959,746.11 178.91%
intangible Athena Luxury refrigerator and
and other capacity expansion for ice cube.
long-term
assets
Part of the transfer amount for
transferring the equity assets of
Sichuan Changhong Air
Conditioner Co., Ltd. and
Zhongshan Changhong Apparatus
Cash paid Co., Ltd. have been paid at same
for -8,964,000.00 133,022,800.00 -106.74% period of last year; the investment
investment paid last year were not combined to
offset due to the unfinished
procedures on Industrial and
Commercial from marketing sub
company; part of the marketing sub
company have been established in
6
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
this period, and the abovementioned
investment listed as minor in
consolidation statement.
Cash The investment amount from
received minority shareholders has been
from 30,191,000.00 - absorbed by the joint-venture
absorbing subsidiary that established in this
investment period.
Cash
received - 30,000,000.00 -100.00% No newly bank loans in this period
from loans
Cash paid
Due to the payment of due loans
for settling 42,048,951.80 64,000,000.00 -34.30%
decreased
debts
Cash paid The dividends to shareholders
for dividend distributed for 2010 of Chaohu
and profit Meiling Apparatus Marketing Co.,
2,900,223.66 959,468.70 202.27%
distributing Ltd., a sub sub-company of the
or interest Company, have been paid. And the
paying interest of bank loans increased.
Influence on
cash due to
Due to the variation of exchange
fluctuation 1,233,015.43 -710,320.10 -273.59%
rate in this period.
in exchange
rate
3.2 Analysis and explanation of significant events and their influence and solutions
3.2.1 Particular about Qualified Opinion
□Applicable √Inapplicable
3.2.2 Particular about fund offered to shareholder or its related parties by the Company and
external guarantee with procedure violation
□Applicable √Inapplicable
3.2.3 Particular about the significant contract of routine operation signed and implemented
√Applicable □Inapplicable
1. Jiangxi Meiling and land reserve center of Jingdezhen City entered into the Reserve Contract
for Use Right on State-owned Land
For the purpose of reuse the reserve capital of Jiangxi Meiling Cooling Co., Ltd. (‘Jiangxi
Meiling” for short), raising the construction capital for strategy relocation, improving the capital
structure of Jiangxi Meiling and higher the capital quality, together with the city planning of
Jingdezhen government, the Proposal of Reserve of the Land Use Right of Jiangxi Meiling Cooling
Co., Ltd. was deliberated and passed by the 41st Meeting of 6th Session of the Board held on 20
January 2011. Agrees Jiangxi Meiling to sign the Reserve Contract for Use Right on State-owned
Land with land reserve center of Jingdezhen City. The land located in Guanzhuangjing with Cidu
Road, TGY(2010) No. 0121, 159,448.8 m2 (equivalent to 239.17 mu) in total was agreed for reserve
by land reserve center of Jingdezhen City. The compensation for the abovementioned land reserve
amounting to RMB 65 million.
Found more details on the appointed newspaper for information disclosure with No. 2011-004
and No.2011-006 respectively dated 21 January 2011.
3.2.4 Other
√Applicable □Inapplicable
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Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
1. Particular about process of the fund raised and investment of fund raised in the report period
On 10 January 2011, the newly issuing A-share of 116,731,500 shares privately offering of 2010
was officially trading in Shenzhen Stock Exchange. Being privately offering completed, register
capital of the Company increase to RMB 530,374,449. On 7 January 2011, according to relevant
regulations, the Agreement of Tripartite Regulatory for Raised Fund have been signed between the
Company and Taoxianglou Sub-branch of Hefei Branch of China Everbright Bank, Shouchunluqiao
Sub-branch of Bank of Communication, Changjiang East Road Sub-branch of Hefei ICBC, Luyang
Sub-branch of Hefei China Construction Bank and the sponsor institution China Merchants Securities
Co., Ltd. respectively. On 20 January 2011, being consented by the Board, Supervisory Committee,
Independent Directors and sponsor institution China Merchants Securities Co., Ltd, being approved
by Shine Wing CPA Co., Ltd., the self-raised fund RMB 88,781,537.21 invested in advance for
project recruitment agreed for replaced with the raised fund.
In accordance with the Management Method on Proceeds for Listed Company from Shenzhen
Stock Exchanges and relevant regulations of the Management System of Usage of Raised Fund of the
Hefei Meiling Co., Ltd., for purpose of maximized the efficiency on proceeds, lower the financial
expense and down the business cost. On the premise of satisfied capital requirement for investment
project from raised fund, on 26 March 2011, partial idle raised fund RMB 60 million was used for
current capital supply, being consented by the Board, Supervisory Committee, sponsor institution and
Independent Directors. Terms for fund used limited in six months since the date approved by the
Board. And should used and manage the fund by regulations and return the fund into specific account
timely.
Till end of 31 March 2011, RMB 181,977,213 has been used and balance of RMB 995,977,107.
Of which: RMB 3387658 was used in the production base for Athena Luxury refrigerator; RMB
98,454,468 was invested in the project of capacity expansion for ice box; RMB 42,180,767 was
expensed on the capacity expansion project for environmentally energy-saving refrigerator and RMB
37,954,320 was used for the current capital supplementation.
Till end of 31 March 2011, the project for production base of Athena Luxury refrigerator is in the
process of building and land construction, various projects still in process of construction. The land
and plan of 1st phase of the ice box was basically completed, equipment all set and testing completed
and have been in production. Project for environmentally energy-saving refrigerator have been in
production and with a favorable condition.
Found more details on the Notice of Privately A-share Offering and Listing Report, Independent
Opinion on the Self-raised Fund Invested in Advance for Project Recruitment Agreed for Replaced
with the Raised Fund, and Sponsor Opinion from China Merchants Securities Co., Ltd. on the
Self-raised Fund Invested in Advance for Project Recruitment Agreed for Replaced with the Raised
Fund and other notices published on appointed newspaper for information disclosure with No.
2011-003, No. 2011-004, No. 2011-005 and No.2011-007 respectively dated 7 January 2011, 17
January 2011, 20 January 2011 and 21 January 2011. And relevant notice of Particular about the
Usage of Raised Fund 2010 published on appointed newspapers dated 7 March 2011 and 26 March
2011 with No.2011-019.
2. Appointed media for information disclosure
China Securities Journal was newly appointed as the newspaper for information disclosure with
the purpose of enlarges the information coverage and perfected the management on investor
relationship. The appointed media for information disclosure for the Company will be Securities
Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website since 26 January
2011.
Found more details on the notice published on appointed media dated 26 January 2011 with
no.2011-008.
3. Relevant items of the capital increased in Mianyang Meiling Cooling Co., Ltd.,-- subsidiary
of the Company
8
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
According to the fund raised in privately A-share offering 2010 for investment projects, RMB 50
million was increased in Mianyang Meiling Cooling Co., Ltd.,(short for ‘Mianyang Meiling”) for the
construction of production line for environmentally energy-saving refrigerators. Being capital
increased, register capital of Mianyang Meiling increased to RMB 100 million. The Company
invested RMB 95 million accounts 95 percent of the equity, while Zhongke Meiling Hypothermia
Technology Co., Ltd. invested RMB 5 million accounts 5 percent of the equity. The abovementioned
capital increased have been finished the changed procedures in Industrial and Commerce on 23
February 2011.
Found more details on the notice published on appointed media dated 2 March 2011 with
no.2011-010.
4. Changes of the sponsor representative for share-trading reform
In March 2011, the letter of changes of sponsor representative was received by the Company
from China Merchants Securities Co., Ltd., -- the sponsor institution for share-trading reform. The
original representative for share-trading reform and supervise Zheng Huafeng was office leaving, the
China Merchants Securities Co., Ltd. decided to appointed Zhang Xiaobin replaced the job of Zheng
Huafeng for continuously supervise and guidance work.
Found more details on the notice published on appointed media dated 22 March 2011 with
no.2011-016.
5. Sales of the land use right of Zhongshan Changhong Apparatus Co., Ltd.,--subsidiary of the
Company
For the purpose of reused the capital of Zhongshan Changhong Apparatus Co., Ltd. (‘Zhongshan
Changhong” for short), optimized the capital status and increased the income from assets disposal
and cash inflow, the Proposal of Sales of the land use right of Zhongshan Changhong Apparatus Co.,
Ltd. have been deliberated and passed by the 43rd Meeting of 6th Session of the Board on 25 March
2011. Consent that transfer the land use right of 21713.3 m2 lands (certificated serials of (2003) No.
021955, with nature of industrial land) owned by Zhongshan Changhong to Guangdong Changhong
Digital Technology Co., Ltd. (‘Guangdong Digital” for short) by agreement. Based on the assessment
results from Guangdong Zhonglian Yangcheng Assets Assessment Co., Ltd. the object has a value of
RMB 14.84 million with value-add rate of 528.87 percent. Being negotiation between Zhongshan
Changhong and Guangdong Digital, the transfer price will be RMB 14.84 million. The
abovementioned item recognized as related transaction and being recognized and agreed by
independent directors, related director are avoiding the voting.
Found more details on the notice published on appointed media dated 26 March 2011 with
no.2011-017 and no. 2011-020.
6. Particular about the significant lawsuit and arbitration
After the completion of 100 percent state-owned property purchased from Hefei Meiling Group
Co., Ltd. (‘Meiling Group” for short) by the Company, for maintenance the independency and
integration for trade mark and trade name of “Meiling”, base on the principle of concentrate
management and unify usage, the Company clear out and check the trade name and trade marks out
of the Company that authorized by Meiling Group. The Agreement for Trade Mark License
signed between the Meiling Group and Hefei Meiling Small Appliance Co., Ltd. on 20 January 2003
satisfied no implementation condition any more and met the terminated condition. Therefore,
subordinate subsidiary of the Company, Meiling Group filed a suit against the termination of Trade
Mark License to Intermediate People’s Court of Hefei City on 21 October 2010, trial of the first
instance have been done and waiting the decision presently.
3.3 Implementations of commitments by the Company, shareholders and actual controller
Commitments make within the report period or persisted to the period by listed company and its
director, supervisor and senior executives, shareholder with over 5 percent shares held and its actual
controller
√Applicable □Inapplicable
9
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Item of Commitments Promisee Content of commitments Implementation
Sichuan
Changhong, Statutory commitment,
Commitments for Share Changhong commitment on additional Accomplished
Merger Reform Group and consideration and share-trading implementations
Meiling reform etc.
Group
Commitments made in
Sichuan Commitment on avoid Strictly performed
Acquisition Report or Reports
Changhong competitions in the same industry the commitments
on Change in Interests
1. Reduce, avoidance and
standardized the horizontal
competition and related
transaction; leasing the land and
house to Changhong Air
Conditioner for a long period and
transfer the land and house to
Changhong Air Conditioner after
the assets property certificate have
Commitments made in Sichuan been done; supervise and urge the Strictly performed
privately offering Changhong Sichuan Changhong Minsheng the commitments
Logistic Co., Ltd., the subsidiary,
to lease its land and houses to
Mianyang Meiling for a long
period and transfer the land and
house to Mianyang Meiling after
the assets property certificate have
been done.
2. The lock-up period for the
shares acquired will be 36 months.
Published the regular notice,
information with significant
influence and clarification etc. in
way of true, accuracy, completion,
fairness and timely; no share
Commitments made in The Strictly performed
trading of the Company
privately offering Company the commitments
directly/indirectly in way of sharp
practice by insider information
obtained from the Board,
Supervisory Committee and
Senior executives.
Commitments made in assets The Transfer the state-owned property Strictly performed
acquisition Company of Meiling Group the commitments
Use in the production related with
main operational by regulation;
Commitments made in the return the payment timely; do no
The Strictly performed
current capital supplementation affects on the normal process of
Company the commitments
from partial idle raised fund investment projects from the
raised fund and change no use
purpose of the fund; performed no
10
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
securities investment and risk
investment.
Other commitments (including Sichuan Transfer of the assets property of Strictly performed
additional commitments) Changhong air conditioner the commitments
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
3.5.2 Registration form for receiving research, communication and interview in the report
period
Contents discussed and
Date Place Method Investor
materials supplied
Donghai
Conference room Business production status of
2011-01-06 Spot investigation Securities Co.,
of the company the Company
Ltd.
Conference room Sinolink Business production status of
2011-01-25 Spot investigation
of the company Securities the Company
Changjiang
Securities,
CITIC-Prudenti
al Fund
Management
Co., Ltd.,
Everbright
Securities,
Conference room CITIC Business production status of
2011-03-23 Spot investigation
of the company Securities, the Company
Haitong
Securities,
Fullgoal Fund,
Hua An Fund,
Guolian
Securities and
BOCOM
Schroders
Guotai Junan
Conference room Business production status of
2011-03-31 Spot investigation Securities Co.,
of the company the Company
Ltd.
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about derivatives investment held at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Hefei Meiling Co., Ltd. March 31, 2011 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
11
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Current assets:
Monetary funds 1,529,362,514.46 1,201,196,863.61 1,986,440,504.29 1,798,742,365.37
Settlement
provisions
Capital lent
Transaction finance
asset
Notes receivable 1,755,085,769.69 1,462,148,121.65 1,194,506,906.44 1,106,438,507.37
Accounts receivable 503,097,200.48 272,275,200.67 372,563,010.12 279,434,051.03
Accounts paid in
159,093,836.86 266,845,154.41 187,026,777.59 246,540,102.43
advance
Insurance receivable
Reinsurance
receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 53,830,655.99 55,297,353.70 61,420,720.54 15,116,164.77
Purchase restituted
finance asset
Inventories 1,943,279,531.92 1,283,769,363.17 1,583,313,401.08 1,024,929,999.07
Non-current asset
due within one year
Other current assets
Total current assets 5,943,749,509.40 4,541,532,057.21 5,385,271,320.06 4,471,201,190.04
Non-current assets:
Granted loans and
advances
Finance asset
available for sales
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
16,472,621.79 764,259,969.88 17,918,060.59 714,774,269.88
investment
Investment property 17,925,191.63 14,057,088.27 18,124,247.39 14,172,470.67
Fixed assets 841,181,952.97 548,686,557.70 865,234,132.54 561,795,751.21
Construction in
118,561,350.03 115,618,728.16 75,179,300.94 77,177,425.21
progress
Engineering
material
Disposal of fixed
asset
Productive
biological asset
Oil and gas asset
Intangible assets 670,257,770.32 519,397,385.88 681,869,906.34 525,520,272.58
12
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Expense on
Research and 20,780,108.59 13,505,659.94
Development
Goodwill 10,922,803.73 10,922,803.73
Long-term expenses
to be apportioned
Deferred income tax
51,622,598.51 49,420,537.31 48,138,723.05 46,318,389.98
asset
Other non-current
asset
Total non-current asset 1,747,724,397.57 2,011,440,267.20 1,730,892,834.52 1,939,758,579.53
Total assets 7,691,473,906.97 6,552,972,324.41 7,116,164,154.58 6,410,959,769.57
Current liabilities:
Short-term loans 196,860,000.00 188,860,000.00 238,923,801.11 218,860,000.00
Loan from central
bank
Absorbing deposit
and interbank deposit
Capital borrowed
Transaction
financial liabilities
Notes payable 978,796,476.76 653,590,000.00 920,676,239.36 667,338,655.00
Accounts payable 1,757,651,791.21 1,192,527,780.66 1,421,456,784.36 1,069,993,584.69
Accounts received
1,012,945,735.21 858,331,716.96 922,047,156.39 847,540,346.80
in advance
Selling financial
asset of repurchase
Commission charge
and commission payable
Wage payable 67,391,412.38 57,306,651.16 97,284,277.48 82,061,354.59
Taxes payable 99,806,534.17 119,672,819.55 78,967,865.01 91,232,638.87
Interest payable
Dividend payable 1,333,408.69 738,695.30 738,695.30 738,695.30
Other accounts
455,558,095.84 399,678,486.92 410,610,813.51 425,475,184.84
payable
Reinsurance
payables
Insurance contract
reserve
Security trading of
agency
Security sales of
agency
Non-current
liabilities due within 1 1,211,101.73 1,183,323.92 1,189,452.90 1,145,008.44
year
Other current
liabilities
Total current liabilities 4,571,554,555.99 3,471,889,474.47 4,091,895,085.42 3,404,385,468.53
13
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Non-current liabilities:
Long-term loans 14,506,060.00 14,296,400.00 14,506,060.00 14,296,400.00
Bonds payable
Long-term account
payable
Special accounts
33,093,588.26 33,093,588.26 33,214,132.26 33,214,132.26
payable
Projected liabilities 227,620,231.00 227,620,231.00 203,421,595.00 203,421,595.00
Deferred income tax
liabilities
Other non-current
26,723,420.39 26,723,420.39 26,937,022.85 26,937,022.85
liabilities
Total non-current
301,943,299.65 301,733,639.65 278,078,810.11 277,869,150.11
liabilities
Total liabilities 4,873,497,855.64 3,773,623,114.12 4,369,973,895.53 3,682,254,618.64
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or
530,374,449.00 530,374,449.00 530,374,449.00 530,374,449.00
share capital)
Capital public
1,610,571,447.17 1,625,421,425.24 1,610,571,447.17 1,625,421,425.24
reserve
Less: Inventory
shares
Reasonable reserve
Surplus public
279,597,693.51 279,379,527.83 279,597,693.51 279,379,527.83
reserve
Provision of general
risk
Retained profit 334,861,289.15 344,173,808.22 296,750,782.08 293,529,748.86
Balance difference
of foreign currency
translation
Total owner’s equity
attributable to parent 2,755,404,878.83 2,779,349,210.29 2,717,294,371.76 2,728,705,150.93
company
Minority interests 62,571,172.50 28,895,887.29
Total owner’s equity 2,817,976,051.33 2,779,349,210.29 2,746,190,259.05 2,728,705,150.93
Total liabilities and
7,691,473,906.97 6,552,972,324.41 7,116,164,154.58 6,410,959,769.57
owner’s equity
4.2 Profit statement
Prepared by Hefei Meiling Co., Ltd. Jan.-Mar. 2011 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 2,214,478,744.14 1,673,770,903.51 1,952,626,496.12 1,665,279,274.13
Including: Operating
2,214,478,744.14 1,673,770,903.51 1,952,626,496.12 1,665,279,274.13
income
Interest income
Insurance gained
Commission charge
14
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
and commission income
II. Total operating cost 2,168,166,929.49 1,614,878,599.57 1,941,511,807.26 1,624,240,108.64
Including: Operating cost 1,755,361,265.07 1,210,953,374.24 1,450,614,776.56 1,210,953,374.24
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
4,629,805.23 3,803,643.47 7,524,577.35 7,124,933.15
extras
Sales expenses 351,013,935.30 292,054,356.21 442,931,732.22 381,898,666.00
Administration
62,144,428.52 40,675,854.27 36,609,248.69 23,214,398.06
expenses
Financial expenses -7,006,958.93 -9,075,240.76 -1,965,245.78 -1,670,469.67
Losses of
2,024,454.30 -2,184,461.19 5,796,718.22 2,719,206.86
devaluation of asset
Add: Changing
income of fair value(Loss
is listed with “-”)
Investment income
235,864.47 82,050,909.75 82,050,909.75
(Loss is listed with “-”)
Including:
Investment income on
affiliated company and
joint venture
Exchange income
(Loss is listed with “-”)
III. Operating profit
46,547,679.12 58,892,303.94 93,165,598.61 123,090,075.24
(Loss is listed with “-”)
Add: Non-operating
2,303,381.36 1,755,648.51 34,638,666.72 2,010,144.64
income
Less: Non-operating
580,846.90 445,943.71 324,127.99 312,897.71
expense
Including: Disposal
446,994.83 445,943.71 312,897.71 312,897.71
loss of non-current asset
IV. Total Profit (Loss is
48,270,213.58 60,202,008.74 127,480,137.34 124,787,322.17
listed with “-”)
Less: Income tax 9,519,588.87 9,557,949.38 16,774,253.77 16,114,068.42
V. Net profit (Net loss is
38,750,624.71 50,644,059.36 110,705,883.57 108,673,253.75
listed with “-”)
15
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Net profit
attributable to owner’s 38,110,507.07 50,644,059.36 110,664,275.21 108,673,253.75
equity of parent company
Minority
shareholders’ gains and 640,117.64 41,608.36
losses
VI. Earnings per share
i. Basic earnings per
0.0719 0.0955 0.2675 0.2627
share
ii. Diluted earnings per
0.0719 0.0955 0.2675 0.2627
share
VII. Other consolidated
-62,337,849.93 -62,337,849.93
income
VIII. Total consolidated
38,750,624.71 50,644,059.36 48,368,033.64 46,335,403.82
income
Total consolidated
income attributable to
38,110,507.07 50,644,059.36 48,326,425.28 46,335,403.82
owners of parent
company
Total consolidated
income attributable to 640,117.64 41,608.36
minority shareholders
Concerning the enterprise consolidation under common control occurred in the period; the mergered
party realized net profit before consolidation amounting to RMB00.00.
4.3 Cash flow statement
Prepared by Hefei Meiling Co., Ltd. Jan.-Mar. 2011 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 972,106,840.66 692,132,319.10 742,252,323.84 598,545,323.14
providing labor services
Net increase of
customer deposit and
interbank deposit
Net increase of loan
from central bank
Net increase of
capital borrowed from
other financial institution
Cash received from
original insurance
contract fee
Net cash received
from reinsurance
business
Net increase of
insured savings and
16
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
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
16,322,359.55 6,106,556.57 6,229,079.97 3,147,453.85
received
Other cash received
concerning operating 5,537,314.80 2,249,189.45 18,520,299.98 6,096,479.87
activities
Subtotal of cash
inflow arising from 993,966,515.01 700,488,065.12 767,001,703.79 607,789,256.86
operating activities
Cash paid for
purchasing commodities
971,309,670.22 773,811,180.94 530,240,338.28 414,530,449.67
and receiving labor
service
Net increase of
customer loans and
advances
Net increase of
deposits in central bank
and interbank
Cash paid for
original insurance
contract compensation
Cash paid for
interest, commission
charge and commission
Cash paid for bonus
of guarantee slip
Cash paid to/for
153,323,013.85 97,348,049.20 85,632,483.48 70,912,553.67
staff and workers
Taxes paid 44,356,889.02 35,429,887.25 41,604,856.74 36,994,549.32
Other cash paid
concerning operating 245,548,289.60 175,060,677.54 201,789,587.42 150,477,626.82
activities
Subtotal of cash
outflow arising from 1,414,537,862.69 1,081,649,794.93 859,267,265.92 672,915,179.48
operating activities
Net cash flows
arising from operating -420,571,347.68 -381,161,729.81 -92,265,562.13 -65,125,922.62
activities
17
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
II. Cash flows arising
from investing activities:
Cash received from
4,462,303.03 4,462,303.03
recovering investment
Cash received from
514,300.00 514,300.00 82,050,909.75 82,050,909.75
investment income
Net cash received
from disposal of fixed,
1,112,104.15 1,112,104.15 1,000.00 1,000.00
intangible and other
long-term assets
Net cash received
from disposal of
subsidiaries and other
units
Other cash received
concerning investing 3,506,000.97 4,038,585.40 2,630,081.54 1,689,329.25
activities
Subtotal of cash
inflow from investing 5,132,405.12 5,664,989.55 89,144,294.32 88,203,542.03
activities
Cash paid for
purchasing fixed,
36,146,666.52 34,761,129.64 12,959,746.11 10,017,881.09
intangible and other
long-term assets
Cash paid for
-8,964,000.00 50,000,000.00 133,022,800.00 120,000,000.00
investment
Net increase of
mortgaged loans
Net cash received
from subsidiaries and 931,220.72
other units
Other cash paid
concerning investing 38,875,000.00
activities
Subtotal of cash
outflow from investing 28,113,887.24 123,636,129.64 145,982,546.11 130,017,881.09
activities
Net cash flows
arising from investing -22,981,482.12 -117,971,140.09 -56,838,251.79 -41,814,339.06
activities
III. Cash flows arising
from financing activities
Cash received from
30,191,000.00
absorbing investment
Including: Cash
received from absorbing
minority shareholders’
investment by
subsidiaries
18
Hefei Meiling Co., Ltd. The First Quarterly Report 2011 (Full Text)
Cash received from
30,000,000.00 30,000,000.00
loans
Cash received from
issuing bonds
Other cash received
concerning financing 5,000,000.00
activities
Subtotal of cash
inflow from financing 30,191,000.00 5,000,000.00 30,000,000.00 30,000,000.00
activities
Cash paid for
42,048,951.80 30,000,000.00 64,000,000.00 64,000,000.00
settling debts
Cash paid for
dividend and profit
2,900,223.66 2,120,745.67 959,468.70 918,968.70
distributing or interest
paying
Including: Dividend
and profit of minority
shareholder paid by
subsidiaries
Other cash paid
concerning financing 72,745,443.61
activities
Subtotal of cash
outflow from financing 44,949,175.46 104,866,189.28 64,959,468.70 64,918,968.70
activities
Net cash flows
arising from financing -14,758,175.46 -99,866,189.28 -34,959,468.70 -34,918,968.70
activities
IV. Influence on cash and
cash equivalents due to
1,233,015.43 1,453,557.42 -710,320.10 -661,584.13
fluctuation in exchange
rate
V. Net increase of cash
-457,077,989.83 -597,545,501.76 -184,773,602.72 -142,520,814.51
and cash equivalents
Add: Balance of
cash and cash equivalents 1,986,440,504.29 1,798,742,365.37 747,572,445.88 579,447,940.41
at the period -begin
VI. Balance of cash and
cash equivalents at the 1,529,362,514.46 1,201,196,863.61 562,798,843.16 436,927,125.90
period -end
4.4 Auditor’ report
Auditor’s opinions: Un-audited
Chairman: Zhao Yong
Board of the Director of
Hefei Meiling Co., Ltd.
26 April 2011
19
