Hefei Meiling Co., Ltd. Semi-annual Report 2011
合肥美菱股份有限公司
Hefei Meiling Co., Ltd.
Hefei Meiling Co., Ltd.
Semi-Annual Report 2011
1
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Content
Section I. Important Notes………………………………………………………03
Section II. Company Profile…………………………………………………….04
SectionIII.Change in Share Capital and Particulars about Shares Held by Main
Shareholders…………………………………………………………07
Section IV.Particulars about Directors, Supervisors and Senior Executives…..12
Section V. Report of Board of Director………………………………………..13
Section VI. Significant Events………………………………………………….31
Section VII. Financial Report (un-audit)……………………………………….49
Section VIII. Documents available for Reference………………………………191
2
3
Section I. Important Notes
1. Board of Directors, 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 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.
2. There was no case in the Company that directors, supervisors and senior management couldn’t guarantee for
the truth, accuracy and completion of the Report or had objections to it.
3. All directors were present in the Board Meeting by spot& telecom.
4. The Mid-term Financial Report of 2011 has not been audited by CPAs.
5. Chairman of the Board Mr. Zhao Yong, President Mr. Wang Yong, Vice-president Yu Wanchun and person in
charge of accounting institution Mr. Liu Bimin hereby confirm that the Financial Report of the Semi-annual
Report of 2011 is true and complete.
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Section II. Company Profile
I. Basic information
(I) Legal Name of the Company
In Chinese: 合肥美菱股份有限公司
In English: HEFEI MEILING CO., LTD
Short Form in English: HFML
(II) Legal representative: Zhao Yong
(III) Secretary of the Board: Li Xia
Contact Address: No. 2163, Lian Hua Road, Economic and Technology Development Zone, Hefei
Tel.: (0551)2219021 Fax: (0551)-2219021
E-mail: lixia@meiling.com
(IV) Registered Address: Address: No. 2163, Lian Hua Road, Economic and Technology Development
Zone, Hefei
Post Code: 230601
Office address: Address: No. 2163, Lian Hua Road, Economic and Technology Development Zone, Hefei
Post Code: 230601
Internet website: http://www.meiling.com
E-mail of the Company: info@meiling.com
(V) Newspapers Chosen for Disclosing the Information of the Company: Securities Times, China
Securities Journal, and Hong Kong Commercial Daily
Internet Website for Publishing Annual Report Designated by CSRC: Juchao Website,
http://www.cninfo.com.cn
Place Where the Semi-Annual Report is Prepared and Placed: Secretariat of the Board on the 2nd floor of
the Office Building of the Company
(VI) Stock listed in: Shenzhen Stock Exchange
Short Form of the Stock: MEILING DIANQI WANMEILING-B
Stock Code: 000521 200521
(VII) Other related information
1. Initial registration date: December 31, 1992
Registration address: Hefei Municipal Administration Bureau of Industrial and Commerce
Registration date after change: 21 May 2009
Address for change: Anhui Province Administration Bureau of Industrial and Commerce
2. Legal Person Business License Registration No.: 340000400001278
3. Taxation Registration No.: GSWZi No.34010414918555X
WDHZi No.34011114918555X
4. Organization Code Certificate: 14918555-X
5. Name and office address of the certified public accountants engaged by the Company:
Shin wing Certified Public Accountants Co., Ltd.
Office Address: 9/F, Block A, Fuhua Building, Beida Street, Chaoyangmen, Dongcheng District, Beijing
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
II.Major financial data and indexes
(I) Major accounting data and financial indexes
Unit: RMB
Increase/decrease at
the end of this
At the end of this At the period-end report period
report period of last year compared with that
in period-end of last
year (%)
Total assets 8,358,002,600.94 7,116,164,154.58 17.45
Owners’ equity attributable to
2,843,452,367.97 2,717,294,371.76 4.64
shareholders of the listed company
Share capital 530,374,449.00 530,374,449.00 -
Net assets per share attributable to
shareholders of the listed company 5.36 5.12 4.69
（RMB/Share）
Increase/decrease in
This report period The same period
this report period
(Jan. to Jun.) of last year
year-on-year (%)
Total operating income 5,475,018,688.64 4,575,759,806.96 19.65
Operating profit 22,064,506.86 164,996,610.95 -86.63
Total profit 139,463,828.43 259,241,220.50 -46.20
Net profit attributable to shareholders of
126,157,996.21 218,616,696.38 -42.29
the listed company
Net profit attributable to shareholders of
the listed company after deducting 115,854,863.05 82,893,472.54 39.76
non-recurring gains and losses
Basic earnings per share (RMB/Share) 0.2379 0.5285 -54.99
Diluted earnings per share (RMB/Share) 0.2379 0.5285 -54.99
Return on equity (%) 4.54 15.85 -11.31
Return on weighted average equity after
deducting non-recurring gains and 4.17 6.01 -1.84
losses (%)
Net cash flow arising from operating
-544,333,695.81 -163,991,222.01 -231.93
activities
Net cash flow per share arising from
-1.03 -0.40 -158.87
operating activities (RMB/Share)
Explanation: in 2010 the Company issued 116,731,500 shares of non-public A stock thus the total shares
increased up to 530,374,449 shares. The denominator of the indexes in the above statement such as basic
earnings per share and diluted earnings per share of the same period of last year referred to the total shares
413,642,949 before the non-public issue of 2011, while the denominator of indexes of this period-end refers to
the total shares 530,374,449 after the non-public issue. The indexes of the basic earnings per share and diluted
earnings per share of the same period of last year will be respectively 0.4122 yuan per share and 0.4122 yuan
per share if they were calculated according to the present total shares (530,374,449 shares). The one of this
period decreased by 42.29% compared to the one of the same period of last year
(II) Items of non-recurring gains and losses
Unit: RMB
Items of non-recurring gains and losses Amount Note(If applicable)
Gains and losses from the disposal of non-current 9,089,799.67
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
assets
Governmental subsidy reckoned into current gains
and losses, but closely relevant to the Company’s
business except for the governmental subsidy
3,133,103.85
enjoyed in quota or ration according to the national
general standards
Other non-operating income and expense excluded
61,872.32
the aforementioned items
Influence amount of equity attributable to minority
-78,593.96
shareholders
Influence amount of income tax -1,903,048.71
Total 10,303,133.17
(III) Accounting difference between IFRC and CAS
Unit: RMB
Net profit attributable to Owners’ equity attributable to
shareholders of listed company shareholders of listed company
Jan.-Jun. 2011 Jan.-Jun. 2010 30 June 2011 30 June 2010
IFRC 126,157,996.21 218,616,696.38 2,843,452,367.97 2,717,294,371.76
CAS 126,157,996.21 218,616,696.38 2,843,452,367.97 2,717,294,371.76
Sub-items and total adjusted based on IAS:
Total amount of
differences between CAS - - - -
and IFRC
Explanations on
differences between CAS No differences
and IFRC
On 12 September 2007, the CSRC announced the and
acclaimed from the announcement day to cancel the ‘dual auditory’ requirement of hiring the stock CPAs and
foreign auditing as information disclosure standardization for the B-share Company. The Company has not
prepared the financial report under the IFRS since the year of 2007, and the company’s financial report under
the China Accounting Standard, so there is no difference between the CAS and IFRS.
(IV)Supplementary profit statement
Unit: RMB
Return on equity Earnings per share
Profit in the Basic Diluted
Items Weighted
report period Fully diluted earnings per earnings per
average
share share
Net profit
attributable to
126,157,996.21 4.44% 4.54% 0.2379 0.2379
common
shareholders
Net profit
attributable to
common
shareholders after 115,854,863.05 4.07% 4.17% 0.2184 0.2184
deducting the
non-recurring
losses and gains
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
Section III. Changes in Share Capital and Particulars about Shares Held by Main
Shareholders
I. Particulars about change in share capital (As at the end of 30 June, 2011)
(I) Changes of shares
Unite: Share
Before the change Increase/decrease of this time (+, -) After the change
Capita
Bon lizatio
New
Proport us n of Proporti
Amount shares Others Subtotal Amount
ion shar public on
issued
es reserv
e
I. Restricted
124,553,317 23.48% +22,419 +22,419 124,575,736 23.49%
shares
1. State-owned
shares
2. State-owned
legal person’s 67,461,338 12.72% 67,461,338 12.72%
shares
3. Other
domestic 57,024,724 10.75% 57,024,724 10.75%
shares
Including:
Domestic
non-state-owne 57,024,724 10.75% -85,387 -85,387 56,939,337 10.73%
d legal person’s
shares
Domestic
natural +85,387 +85,387 85,387 0.02%
person’s shares
4. Foreign
shares
Including:
Foreign legal
person’s shares
Foreign natural
person’s shares
5.Senior
executives’ 67,255 0.01% +22,419 +22,419 89,674 0.02%
shares
II. Unrestricted
405,821,132 76.52% -22,419 -22,419 405,798,713 76.51%
shares
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
1. RMB
Ordinary 292,721,132 55.19% -22,419 -22,419 292,698,713 55.19%
shares
2.
Domestically
113,100,000 21.33% 0 113,100,000 21.32%
listed foreign
shares
3. Overseas
listed foreign
shares
4. Others
III. Total shares 530,374,449 100.00% 530,374,449 100.00%
(II) Particulars about the shares held by top 10 shareholders and shares held by top 10 unrestricted
shareholders
Unit: Share
Total amount of shareholders 60,141
Particulars about shares held by the top ten shareholders
Number of
Proportion Numbers of
Nature of Total of share
Full name of Shareholders of shares non-circulating
shareholder shares held pledged/
held shares held
frozen
Sichuan Changhong Electric State-owned
21.38% 113,402,452 38,910,500
Co., Ltd. legal person
Hefei Xingtai Holding Group State-owned
6.26% 33,210,696 500,970
Co., Ltd legal person
China Life Asset Management
Co., Ltd. - Masanori Life Domestic
Insurance Corporation - non-state 3.77% 20,000,000 20,000,000
Universal Insurance Products legal person
Fullgoal Fund Management Domestic
Co., Ltd non-state 3.77% 20,000,000 20,000,000
legal person
Changhong (Hong Kong) Trade Foreign legal
3.24% 17,150,815 0
Co., Ltd. person
Fangzheng Securities Co., Ltd. State-owned
2.89% 15,325,863 9,000,000
legal person
Donghai Securities Co., Ltd. State-owned
2.83% 15,023,399 9,000,000
legal person
GUOTAI JUNAN
Foreign legal
SECURITIES(HONGKONG) 2.16% 11,440,224 0
person
LIMITED
China Pacific Life Insurance Domestic
Company Limited - Dividend - non-state 2.07% 11,000,000 0
Individual Dividend legal person
GUOTAI JUNAN
State-owned
SECURITIES HOLDING 1.89% 10,000,000 10,000,000
legal person
COMPANY LIMITED
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
Particulars about the shares held by the top ten unrestricted shareholders
Amount of unrestricted shares
Full Name of shareholder Type of shares
held
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.,
17,150,815 Domestically listed foreign share
Ltd.
GUOTAI JUNAN
SECURITIES(HONGKONG) 11,440,224 Domestically listed foreign share
LIMITED
China Pacific Life Insurance
Company Limited - Dividend - 11,000,000 RMB common share
Individual Dividend
CAO SHENGCHUN 8,478,345 Domestically listed foreign share
Fangzheng Securities Holding Co.,
6,325,863 RMB common share
Ltd
Donghai Securities Holding Co., Ltd 6,023,399 RMB common share
China Pacific Life Insurance
Company Limited - Traditional - 5,080,800 RMB common share
General insurance products
Donghai Securities - Bank of
Communications - Donghai
4,704,195 RMB common share
Securities robust collection of
value-added asset management plan
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is
the controlling subsidiary of Sichuan Changhong Electric Co., Ltd.; there
existed no associated relationship or belong to the concerted actors as
specified in the Measures for the Administration of Information Disclosure of
Explanation on associated Shareholder Equity Changes of Listed Companies among Sichuan
relationship or accordant action Changhong Electric Co., Ltd., Changhong (Hong Kong) Trade Co., Ltd. and
among the aforesaid other top 8 shareholders; and top ten shareholders with unconditional
shareholders subscription; as the Company has not known whether there exists any
business relationship among the above shareholders with unconditional
subscription or they belong to the concerted actors as specified in the
Measures for the Administration of Information Disclosure of Shareholder
Equity Changes of Listed Companies.
Explanation: among the top 10 shareholders of the Company, Fuguo Funds Management Co., Ltd held
20,000,000 shares of the Company via its funds products, accounting for 3.77% of the total shares of the
Company. The specific particulars are as follows:
Amount of the held Proportion in
Account name of securities
shares (share) total shares
Bank of Communication - Wells Fargo Tianyi Value
4,000,000 0.75%
Securities Investment Fund
China Merchants Bank Co., Ltd-Fuguo Tianhe TRW
2,000,000 0.38%
Securities Investment Fund
Agricultural Bank of China – Fuguo Tiancheng Bonus
500,000 0.09%
Flexible Allocation Securities Investment Fund
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
Bank of Communication -Hnaxing
1,000,000 0.19%
Securities-Investment Fund
ICBC – Fullgoal Tianhui Selection growth hybrid
2,300,000 0.43%
securities investment fund
ICBC-Fullgoal Inflation and deflation theme wheeled
700,000 0.13%
Securities Investment Fund
Hansheng Securities Investment Fund 1,500,000 0.28%
Construction Bank of China- Fuguo Tinabo
5,000,000 0.94%
Innovation Theme Stock Securities Investment Fund
Agricultural Bank of China-Fuguo Tinarui Strong
Areas Selection Hybird Open Securities Investment 3,000,000 0.57%
Fund
Total 20,000,000 3.77%
(III) Statement on changes of restricted shares
Unit: Share
Restricted Restricted
Restricted Restricted
Name of shares shares Reason for Date of
shares in shares in
shareholders increased released condition releasing
year-begin period-end
this year this year
Departing
Wang Jiazhang 67,255 22,419 0 89,674 senior -
executive
Total 67,255 22,419 0 89,674 - -
(IV) Amount of shares held by top 10 restricted shareholders and restricted condition
Unit: Share
Amount of restricted shares
Name of shareholders Restricted condition
held
Having subscribe non-public
Sichuan Changhong Electric
38,910,500 offering in 2010, still in a restricted
Co., Ltd.
period
China Life Asset Management
Having subscribe non-public
Co., Ltd. - Masanori Life
20,000,000 offering in 2010, still in a restricted
Insurance Company Limited -
period
Universal Insurance Products
Having subscribe non-public
Fuguo Fund Management Co.,
20,000,000 offering in 2010, still in a restricted
Ltd
period
Having subscribe non-public
Guotai Junan Securities Holding
10,000,000 offering in 2010, still in a restricted
Co., Ltd
period
Having subscribe non-public
Founder Securities Holding Co.,
9,000,000 offering in 2010, still in a restricted
Ltd
period
Having subscribe non-public
Ningbo Weichuang Union
9,000,000 offering in 2010, still in a restricted
Investment Co., Ltd
period
Having subscribe non-public
Donghai Securities LLC 9,000,000 offering in 2010, still in a restricted
period
Commitment for Share Merger
Provincial ABC Trust Hefei
1,536,975 Reform; not return the
Office
consideration of share merger, the
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
shares still un-traded in market
Commitment for Share Merger
Reform; not return the
Hefei Insurance Company 853,875
consideration of share merger, the
shares still un-traded in market
Commitment for Share Merger
Reform; not return the
Hefei Technology Bank 853,875
consideration of share merger, the
shares still un-traded in market
Explanation: Fullgoal Fund Management Co., Ltd held shares of the Company via 9 fund products such as
Communication Bank-Fullgoal Tianyi Value Securities Fund and so on.
II. Particular about controlling shareholder and actual controller
(I) Change of shares held
On May 18, 2006 and Jan. 11, 2007, Hefei Meiling (Group) Holdings Co., Ltd. (hereinafter refers to Meiling
Group) respectively signed Share Transfer Agreement of Meiling Electronic Appliance and Share Transfer
Supplementary Agreement of Meiling Electronic Appliance with Sichuan Changhong and Sichuan Changhong
Electronic Group Co., Ltd. (hereinafter refers to Changhong Group); Meiling Group planed to transfer its
holding 82,852,683 shares among 123,396,375 shares to Sichuan Changhong and Changhong Group in the
method of agreement transfer, of which Sichuan Changhong accepted 45,000,000 shares(accounting for 10.88
percent in total shares of the Company) with becoming the first largest shareholder and Changhong Group
accepted 37,852,683 shares(accounting for 9.15 percent in total shares of the Company) with becoming the
third largest shareholder. In August 2007, the aforementioned shares transfer accomplished its ownership
transfer. On Dec. 26, 2008, the Company received the Document on Reply of Shares Transfer Held by
State-owned Shareholders of Hefei Meiling Co., Ltd.(GZCQuan〔2008〕No.1413) delivered from Changhong
Group issued by State-owned Assets Supervision and Administration Commission of the State Council, in
which 32,078,846 shares of the Company held by Changhong Group were approved to be transferred to
Sichuan Changhong. On Jan. 21, 2009, the aforementioned shares transfer accomplished its ownership transfer.
After the transfer, 70,214,797 tradable shares with restricted conditions held by the first largest shareholder
Sichuan Changhong of the Company accounted for 16.98 percent in the total shares of the Company. Sichuan
Changhong committed to continue to perform the commitment made by Changhong Group during the share
merger reform of the Company.
In 2010, Sichuan Changhong participated in the non-public issue of A stock of 2010 of the Company. Finally
Sichuan Changhong subscribed 38,910,500 shares A stock of the Company with price of 10.28 yuan per share.
Till 30, Jun. of 2011, Sichuan Changhong and Changhong (HK) Trade Co., Ltd who is the concerted actor
totally held 130,553,267 shares of the Company, taking 24.62% of total shares of the Company. Including,
Sichuan Changhong directly held 113,402,452 shares A stock of the Company, taking 21.38% of the total shares.
And Changhong (HK) Trade Co., Ltd held 17,150,815 shares of B stock of the Company, taking 3.24% of the
total shares. Sichuan Changhong is still the first majority shareholder of the Company.
(II) Brief introduction on controlling shareholder and actual controller
According to Reply of Shares Transfer Held by State-owned Shareholders of Hefei Meiling Co., Ltd issued by
State-owned Assets Supervision and Administration Commission of the State Council and the Registration and
Transfer Confirmation issued by Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, shareholders list and so on, Sichuan Changhong is the controlling shareholder.
Sichuan Changhong Electric Co., Ltd.: Legal representative: Mr. Zhao Yong; registered capital: RMB
3,559,146,409; registered address: No. 35, Mianxing (E) Road, Hi-tech Zone, Mianyang, Sichuan; business
scope: manufactures, sales and maintenance of household appliance, electric products and spare parts,
communications equipments, computer and other electrical equipments, specialized equipments of electronic
and electrician, electrical machinery and equipment, series products of batteries, electric medicine products,
electrical equipments, digital monitoring products, metal products, apparatus and instruments, culture and
office machines, culture and education and sports products, furniture, kitchen cabinet and gas appliance; house
and equipment rental, packing products and technical services; road transportation, storage and discharging
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
convey; e-commerce; R&D, sales and services of software; consultancy and services of enterprise management;
hi-tech project investment and other state-permitted business; development and operation of property; callback
and disposal of obsolete appliance and electric products.
Sichuan Changhong Electronics Group is the controlling shareholder of Sichuan Changhong Apparatus Co.,
Ltd. with the legal person representative Mr. ZhaoYong, registered capital RMB 898040000 and registered
address No. 35, Mianxing (E) Road, Hi-tech Zone, Mianyang, Sichuan as well as business scope of household
appliances, automotive electrical and electronic products and components, electronic information network
products, e-commerce, new materials, electric products, environmental products, communications transmission
equipment, electrical equipment manufacturing, sales, real estate development and so on. As ending 30
June2010, Sichuan Changhong Electronics Group Co., Ltd held 1,061,720,526 shares, accounting for 29.83%
of total equity of Sichuan Changhong Electric Co., Ltd.
The actual controller of Sichuan Changhong Electronic Group Co., Ltd. is State-owned Assets Supervision &
Administration Commission of Mianyang Municipality. State-owned Assets Supervision & Administration
Commission of Mianyang Municipality held 100 percent equities of Sichuan Changhong Electronic Group Co.,
Ltd. State-owned Assets Supervision & Administration Commission of Mianyang Municipality is entrusted by
the same level government, together performs decision-making and management of state-owned asset owners,
and is one organization which executes comprehensive management and supervision on its belonged
state-owned assets.
Equity structure chart of the Company is as follows:
State-owned Assets Supervision & Administration
Commission of Mianyang Municipality
100%
100%
Sichuan Changhong Electric Group Co., Ltd.
29.83%
Sichuan Changhong Electric Co., Ltd.
3.24%
100%
Changhong (Hong Kong) Trade Co., Ltd. 21.38%
3.24%
Hefei Meiling Co., Ltd.
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
Section IV. Directors, Supervisors, and Senior Executives
I. Changes of shares held by directors, supervisor and senior executives of the Company
In reporting period among the directors, supervisors and senior executives only the vice president of the 6th
board of directors Mr. Wang Jiazhang held shares of the Company accounting for 89,674 shares which didn’t
change. Mr. Wang Jiazhang hadn’t taken charge of director, supervisor and senior executive of the Company
anymore. According to the Administration Rules for Shares Held by Directors, Supervisors and Senior
Executives of Listed Companies and the Change issued by CSRC, within half year after their dismission the
directors, supervisors and senior executive couldn’t transfer their shares held from the Company. Therefore till
30, Jun. of 2011, the 89,674 shares (the 22,419 shares on which the restriction was cancelled previously
included) of the Company held by Mr. Wang Jiazhang are restricted stocks of senior executive.
II. New engagement and dismissal of directors, supervisors and senior executives of the Company:
1. On Apr. 25 of 2011, the 45th meeting of the 6th Board of Directors of the Company reviewed and passed the
Proposal about the Election at Expiration of Office Terms of the 7th Board of Directors. After voting the items
one by one, they agreed to nominate Mr. Zhao Yong, Mr. Li Jin, Mr. Wang Yong, Mr. Li Wei and Mr. Sun
Liqiang as the candidates about non-independent directors of the 7th board of directors, and agreed to nominate
Mr. Song Baozeng, Mr. Wang Xingzhong, Mr. Liu Youpeng and Mr. Zhang Shidi as the candidates about the
independent directors of the 7th board of directors. The above issues had been disclosed in Securities Times,
China Securities Journal, Hong Kong Commercial Daily and Juchao Website in form of notice (notice No.
2011-024) on Apr. 26 of 2011.
2. On Apr. 25 of 2011, the 15th meeting of the 6th board of supervisors reviewed and passed the Proposal about
the Election at Expiration of Office Term of the 7th Board of Supervisors. After voting the items one by one,
they agreed to nominate Mrs Fei Minying, Mr. Xu Xiao and Mr. Ye Honglin as candidates about the
supervisors of the 7th board of supervisors. The above issues had been disclosed in Securities Times, China
Securities Journal, Hong Kong Commercial Daily and Juchao Website in form of notice (notice No. 2011-0254)
on Apr. 25 of 2011.
3. On Jun. 20 of 2011, the 2010 annual shareholders’ meeting of the Company reviewed and passed the
Proposal about the Election at Expiration of Office Terms of the 7th Board of Supervisors and the Proposal of
the Election at Expiration of Office Term of the 7th Board of Supervisors. The 7th board of directors consists of
9 directors; including 4 members were independent directors. The meeting nominated Mr. Zhao Yong, Mr. Li
Jin, Mr. Wang Yong, Mr. Li Wei, Mr. Sun Liqiang, Mr. Wang Xingzhong, Mr. Song Baozeng. Mr. Liu
Youpeng and Mr. Zhang Shidi as directors of the 7th board of directors, including Mr. Wang Xingzhong, Mr.
Song Baoyu, Mr. Liu Youpeng and Mr. Zhang Shidi as independent directors by means of cumulative voting.
The 7th board of supervisors consists of 5 supervisors, including 3 members are supervisors the shareholders
recommodated and 2 members are staff representatives. The meeting nominated Mrs. Fei Minying, Mr. Xu
Xiao and Mr. Ye Honglin as supervisors of the 7th board of supervisors by means of cumulative voting. Besides,
the employees’ assembly nominated Mr. Shang Wen and Mr. Zhang Ruhe as supervisors of staff
representatives. The term of office of the above 9 directors and 5 supervisors were both about 3 years, from Jun.
20 of 2011 to Jun. 20 of 2014.
The above-mentioned were disclosed on 21 Jun.2011 in Securities Times, China Securities Journal, and Hong
Kong Commercial Daily and Juchao website in form of notice (notice No. 2011- 039).
4. On Jun. 20 of 2011, the 1st meeting of the 7th board of directors reviewed and passed the Proposal about
Election of the President and Vice President of the 7th Board of Directors which agreed to nominate Mr. Zhao
Yong as president of the 7th board of directors and Mr. Li Jin as vice president. The meeting reviewed and
approved the Proposal about engaging Senior Executives for the Company which agreed to re-engage Mr.
Wang Yong as president of the Company. According to the nomination of president, we re-engaged Mr. Liu
Hongwei as executive vice president, Mr. Yu Wanchun, Mr. Li Daijiang, Mr. Li Wei and Mr. Wang Yingmin
as vice president and Mrs. Li Xia as secretary of the board of directors. And the meeting approved the Proposal
of Election of Each Special Commission to the 7th Board of Directors.
On Jun. 20 of 2011, the 1st meeting of the 7th board of supervisors reviewed and passed the Proposal about
13
Hefei Meiling Co., Ltd. Semi-annual Report 2011
th
Election of the President of the 7 Board of Supervisors which agreed to elect Mrs. Fei Minying as president of
the 7th board of supervisors.
The above-mentioned were disclosed on 21 Jun.2011 in Securities Times, China Securities Journal, and
Hongkong Commercial Daily and Juchao website in form of notice (notice No. 2011- 040 and No. 2011- 041).
Section V. Report of Board of Directors
I. operation results and its financial analysts
(I) Review and brief analysis over the operation in reporting period
In the first half year of 2011, the Company insisted the operation spirit of Upgraded Products, Optimized Costs,
Quality Services, Reform and Business. Thus we overcame the pressure of costs from raw materials and labor
and we obtained a better operation performance under an unfavorable micro economic condition.
From Jan. to Jun. of 2011, the amount of production and sales improved dramatically compared to the same
period of 2010. The Company realized operating income 54,750,000,000 yuan with an increase by 19.65%
compared with same period of last year. 126,158,000 yuan was realized in net profit attributable to parent
company, including, 115,854,900 yuan was net profit after deducting non-recurring losses and gains attributable
to shareholders of listed companies which increased by 39.76% compared with the same period of last year. At
the same time, according to statistics, the marketing rate of sales of the Company in the first and second grade
market reached to 11.3% (Zhong Yikang) while the one in the market of home appliance going rural reached to
9.37% (Maimaiti market research center).
In the first half year of 2011, in aspect of domestic marketing, the Company completed division restructuring
and established joint venture marketing Company through innovation of commercial model. The domestic
marketing business division was set up at the same time. Owing to the successful implementation of this time of
marketing strategy, we extremely set free the productivity, promoted the sales and decreased the expenses.
In accordance with the operation spirit, the Company persisted in brand proposition of For Refrigerators with
Quality Service Meiling Chases Fairness, pursuit perfection from aspects of products design, raw material
purchase, manufacture and products check and so on, strictly focused on the quality. After the activities of 10
years of repair guarantee for home appliances going to rural, the Company conducted activities such as Quality
Service and Payment Guarantee, Speak out if You Have Any Suggestion, Whatever the Discount is, Presents for
Proposals till the Refrigerators Reach You and The Refrigerator of Meiling Can Be Free if it Can’t Make Cool.
And we comprehensively promoted brand proposition of Quality Service.
Meanwhile the Company paid more attention to the products development, strengthened products
competitiveness, completed the marketing of new products in accordance with plans. In the first half year we
conducted 17 items such as energy-saving technology, wind-cooling technology, intelligent refrigerator
technology, BCD-537W French innovative product development, preservation technology, and integrated
development, and finished the application and construction of Hefei Green Energy-Saving Engineering
Research Center. The Company also intensified improvement of products quality, set up claims system for
quality loss, reinforced system audit, process audit and product audit. We accelerated those key quality
problems and fully improved products quality.
In the first half year the Company successfully carried out value-creation among people, insisted on Improved
Proposal Activity, Five-hour Activity, Reasonable Suggestion Activity and Income-raising and Cost-decreasing
Activity which hugely stimulated positively of staffs participating in management of the Company. Therefore
we received 605 pecieses of rational suggestion, 149 items for improved proposals. 346 items Five-hour have
been implemented and 18 QC results have been obtained which improved the operation performance of the
Company.
In the first half year, reinforce of internal management, attention to resources investment, expansion of
marketing channels, improvement of sales structure and promotion of operative value and so on happened in
14
Hefei Meiling Co., Ltd. Semi-annual Report 2011
refrigerator industry thus we effectively seized the opportunity of increasing market. Sales income considerably
grew compared with the same period of last year, far beyond the average increase rate of the industry. The sales
structure was perfected dramatically. Though the price of raw material and labor cost are substantially growing,
the gross profit is growing too and profitability is strengthened. The refrigerator industry of the Company has
stepped in a speedy track with healthy growth.
In the overseas market, the Company adjusted export strategy on schedule, seized the opportunity of rapidly
growing markets in Asia and Africa, boosted the market expansion in Asia and Africa and gained a certain
result. Products development and large customers both gained a certain improvement. In the first half year the
export of refrigerator and freezer increased by 27.7% over the same period of last year, the one of air-condition
grew by 96.43% over the same period of last year.
Main operation index: refers to change of main indexes of profit statement and specific reasons analysis:
Unit: RMB
Increase or
decrease of
Item Jan. to June, 2011 Jan. to June, 2010
variance
scope(%)
Management
143,544,164.22 84,359,075.10 70.16%
expenses
Financial expenses -15,240,641.58 -4,425,042.15 -244.42%
Losses from assets
23,097,600.28 15,529,869.18 48.73%
devaluation
Investment
income(losses is 332,396.24 137,640,762.06 -99.76%
listed in “-”)
Operation profit
(losses is listed in 22,064,506.86 164,996,610.95 -86.63%
“-”)
Non-operation
2,143,328.48 528,567.96 305.50%
expenses
Total profit (losses
139,463,828.43 259,241,220.50 -46.20%
is listed in “-”)
Income taxes
18,135,891.78 40,301,395.05 -55.00%
expenses
Net profit (net
losses is listed in 121,327,936.65 218,939,825.45 -44.58%
“-”)
Net profit
attributable to
126,157,996.21 218,616,696.38 -42.29%
owners of parent
company
Losses and gains of
minority -4,830,059.56 323,129.07 -1594.78%
shareholders
Basic earnings per
0.2379 0.5285 -54.99%
share
Diluted earnings
0.2379 0.5285 -54.99%
per share
Other - -105,451,137.74 -100.00%
15
Hefei Meiling Co., Ltd. Semi-annual Report 2011
comprehensive
earnings
Total
comprehensive
earnings
-4,830,059.56 323,129.07 -1594.78%
attributable to
minority
shareholders
Analysis on reason for change:
1. Management expenses increased over the same period of last year mainly due to the consolidation scope of
consolidation statement in this period added related data of Meiling Group and its subsidiaries as well as
marketing joint venture companies.
2. Financial expenses decreased over the same period of last year mainly due to that interest income from raised
capital increased and suppliers offered cash discount.
3. Losses from assets devaluation increased over the same period of last year mainly due to the bad debts
provision and inventory devaluation provision accrued according to the corporate accounting rules and
company accounting policies as well as actual condition of accounts receivable and inventory, increased.
4. Investment income decreased over the same period of last year mainly due to that the Company sold the
financial assets available for sale Keda Xunfei Stock and then obtained investment income while at the same
period of this year we had no this amount of earnings.
5. Operation Profit decreased over the same period of last year mainly due to the Company sold the financial
assets available for sale and then obtained investment income while at the same period of this year we had no
this amount of earnings.
6. Non-operation expenses increased over the same period of last year mainly due to write-off of fixed assets of
this period increased.
7. total profit decreased over the same period of last year mainly due to the Company sold the financial assets
available for sale and then obtained investment income while at the same period of this year we had no this
amount of earnings.
8. Income tax expenses decreased over the same period of last year mainly due to taxable income decreased.
9. Net profit decreased over the same period of last year mainly due to the Company sold the financial assets
available for sale and then obtained investment income while at the same period of this year we had no this
amount of earnings.
10. Net profit attributable to owners of parent company decreased over the same period of last year due to the
Company sold the financial assets available for sale and then obtained investment income while at the same
period of this year we had no this amount of earnings.
11. Losses and gains of minority shareholders decreased over the same period of last year due to parts of
secondary subsidiary joint marketing company got a loss at the beginning of foundation.
12. Basic earnings per share decreased over the same period of last year due to the Company newly issued
stocks thus total shares of the Company increased and got no investment income from financial assets available
for sale.
13. Diluted earnings per share decreased over the same period of last year due to the Company newly issued
stocks thus total shares of the Company increased and got no investment income from financial assets available
for sale.
14. Other comprehensive earnings decreased over the same period of last year mainly due to the Company sold
the financial assets available for sale and then obtained investment income while at the same period of this year
we had no this amount of earnings.
15. Total comprehensive earnings attributable to minority shareholders decreased over the same period of last
year mainly due to parts of secondary subsidiary joint marketing company got a loss at the beginning of
foundation.
(II) Analysis on financial status
Unit: RMB
Item 30 June 2011 31 December 2010 Variance
16
Hefei Meiling Co., Ltd. Semi-annual Report 2011
scope(+,-)( %)
Notes receivable 2,367,756,301.73 1,194,506,906.44 98.22%
Account
815,019,898.50 372,563,010.12 118.76%
receivable
Long-term equity
26,606,580.63 17,918,060.59 48.49%
investment
Development
23,632,784.84 13,505,659.94 74.98%
expenses
Deferred income
74,151,369.83 48,138,723.05 54.04%
tax asset
Notes payable 1,316,664,851.84 920,676,239.36 43.01%
Account payable 1,961,393,556.89 1,421,456,784.36 37.98%
Account received
625,567,258.99 922,047,156.39 -32.15%
in advance
Tax payable 194,319,767.37 78,967,865.01 146.07%
Other accounts
722,592,518.31 410,610,813.51 75.98%
payable
Beforehand
271,075,573.00 203,421,595.00 33.26%
liabilities
Non-current
liabilities due 2,146,691.72 1,189,452.90 80.48%
within 1 year
Special payable 49,654,111.76 33,214,132.26 49.50%
Retained profit 422,908,778.29 296,750,782.08 42.51%
Minority
shareholders’ 62,875,995.30 28,895,887.29 117.59%
equity
Analysis on reason for change:
1. Period-end amount of notes payable increased 1,173,249,395.29 yuan, with 98.22% up over the year-begin
mainly due to sales scale of this period expanded and return on sales notes increased.
2. Period-end amount of accounts receivable increased 442,456,888.38 yuan, with 118.76% up over the
year-begin mainly due to sales scale of this period expanded and loans receivable due in future increased.
3. Period-end amount of long-term equity investment increased8,688,520.04yuan, with 48.49% up over the
year-begin mainly due to partial equity of Hefei Meiling Package Products Co., Ltd who wasn’t included in
assets transfer scope of the Company when the Company purchased Hefei Meiling Group Holdings Co., Ltd,
derived to a new company.
4. Period-end amount of development expenses increased 10,127,124.90 yuan, with 74.98% up over the
year-begin mainly due to the development expenses for air-condition products of subsidiary Sichuan
Changhong Co., Ltd increased.
5. Period-end amount of deferred income tax increased 26,012,646.78 yuan, with 54.04% up over year-begin
mainly due to the Company accrued assets devaluation provision, beforehand expenses for 10-year guarantee
for home appliance going to the rural and pension benefits for the staffs, and the Company increased deferred
income tax assets.
6. Period-end amount of notes payable increased 395,988,612.48 yuan, with 43.01% up over the year-begin
mainly due to bank acceptance bills for materials purchase increased.
7. Period-end amount of accounts payable increased 539,936,772.53 yuan, with 37.98% up over the year-begin
mainly due to production scale of this period expanded thus suppliers purchased more thus balance of loans
payable within normal account period increased.
8. Period-end accounts received in advance decreased 296,479,897.40 yuan, with 32.15% down over the
17
Hefei Meiling Co., Ltd. Semi-annual Report 2011
year-begin mainly due to speed of consignment, billing and calculation lowered in sales busy season.
9. Period-end taxes payable increased 115,351,902.36 yuan, with 146.07% up over the year-begin mainly due to
the value-added taxes and additional realized in Jun., a busy season for production and sales, substantially
increased and were paid in the next month.
10. Period-end other accounts payable increased 311,981,704.80 yuan, with 75.98% up over the year-begin
mainly due to the expenses having occurred in this period which hadn’t been paid increased.
11. Period-end beforehand liabilities increased 67,653,978 yuan, with 33.26 % up over the year-begin mainly
due to the amount for occurring of 10-year of guarantee for home appliance going to the rural in the
Refrigerator Quality Service increased.
12. Period-end non-current liabilities due within 1 year increased 957,238.82 yuan, with 80.48% up over the
year-begin mainly due to the long-term loans due within 1 year increased.
13. Period-end special accounts payable increased 16,439,979.50 yuan, with 49.5% up over the year-begin
mainly due to subsidiary Jiangxi Meiling Refrigeration Co., Ltd received the compensation for land storage
from the previous old plant.
14. Period-end retained profit increased 126,157,996.21 yuan, with 42.51% up over the year-begin mainly due
to the realized net profit increased in this period.
15. Period-end minority shareholders’ equity increased 33,980,108.01 yuan, with 117.59% up over the
year-begin mainly due to the Company conducted reform on the marketing model and successively established
a secondary marketing subsidiary thus increased equity of minority shareholders.
Unit: RMB
The amplitude
Jan. to Jun of fluctuation of
Jan. to Jun of 2010
Item 2011 increase and
decrease (%)）
Cash received from goods
2,261,186,763.21 1,629,352,363.89 38.78%
sales and labor offerings
Return on the received
25,730,915.85 6,229,079.97 313.08%
taxes
Received other cash
relevant to operation 154,847,635.85 76,594,890.57 102.16%
activities
Cash paid for purchasing
goods and accepting 2,108,299,566.88 1,077,401,546.51 95.68%
services
Cash paid to staffs and paid
307,943,256.24 152,199,970.04 102.33%
for staffs
Cash received from
1,000,000.00 6,929,464.41 -85.57%
investment reward
Cash from the investment
1,533,663.00 139,379,760.72 -98.90%
earnings
Net amount of cash
received from disposal of
fixed assets, intangible 71,162,183.34 57,596.00 123454.04%
assets and other long-term
assets
Cash paid for constructing
fixed assets, intangible
57,692,391.87 34,230,003.11 68.54%
assets and other long-term
assets
Cash for investment -22,009,000.00 227,722,800.00 -109.66%
18
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Cash received from
145,961,241.63 238,590,000.00 -38.82%
borrowings
Influence of exchange rate
3,651,667.68 -1,690,185.80 316.05%
on cash
Analysis on reason for change:
1. Cash received from goods sales and labor offerings increased over the same period of last year mainly due to
constant growth of sales income of this period and the notes receivable were due.
2. Return on the received taxes increased over the same period of last year mainly due to parent company and
subsidiary Zhongshan Changhong received export taxes refunding.
3. Other received cash relevant to operation activities increased over the same period of last year mainly due to
subsidiary Sichuan Changhong Air-condition Co., Ltd received more government subsidies for energy-saving
and people-benefiting in this period.
4. Cash paid for purchasing goods and accepting services increased over the same period of last year mainly
due to the expanded production scale and the increased purchasing business and the notes receivable were due.
5. Cash paid to staffs and paid for staffs increased over the same period of last year mainly due to the rising
payments in this period.
6. Cash received from investment reward decreased over the same period of last year mainly due to the
investment earnings decreased in this period.
7. Cash from the investment earnings decreased over the same period of last year mainly due to there isn’t
disposal of investment earnings from financial assets available for sale in this period.
8. Net amount of cash received from disposal of fixed assets, intangible assets and other long-term assets
increased over the same period of last year mainly due to parent company and subsidiary Zhongshan
Changhong received export taxes refunding.
9. Cash paid for constructing fixed assets, intangible assets and other long-term assets increased over the same
period of last year mainly due to increased investment in projects such as Athena luxury refrigerator
manufacture basement, capacity expansion for freezers and capacity expansion for refrigerators with
environmental protection and energy saving.
10. Cash for investment decreased over the same period of last year mainly due to the Company paid partial for
acquiring of equity and assets of Sichuan Changhong Air-condition Co., Ltd and Zhongshan Changhong
Electrics Co., Ltd at the same period of last year. While the account of investment paid in last year wasn’t
consolidated and offset because partial marketing subsidiaries didn’t complete their commercial and industrial
registration procedure. In this period partial marketing subsidiaries were set up thus the above investment
account will be listed as minus data in consolidation statement.
11. Cash received from borrowings decreased over the same period of last year mainly due to bank loan of this
period decreased.
12. Influence of exchange rate on cash increased over the same period of last year mainly due to the variation
of exchange rate in this period.
II. Operation in the report period
(I) Main business scope and operation status
As house appliances enterprise, the Company’s main business scope is manufacture of cooling appliance,
air-conditioner, washer, CNC Injection Machine, computerized water-heater, plastic products, packaging and
ornament production, the import-export of technology and operating in self-products.
1. Main business according to products of semi-annual 2011
Unit: RMB ‘0000
Year-on-year Year-on-year Year-on-year
Gross
Operating Operating increase/decrea increase/decrea increase/decreas
Item rate
income Cost se in operating se in operating e in gross rate
(%)
income (%) cost (%) (%)
Refrigerator(Ice
353,962.4036 258,829.3007 26.88 8.14 14.25 -3.91
Box)
Air-conditioner 152,253.8795 134,197.6407 11.86 49.88 43.31 4.04
Washing-machin
5,671.1860 4,925.5837 13.15
e
19
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Other 4,967.4462 3,953.5926 20.41
Total 516,854.9153 401,906.1177 22.24 20.51 25.52 -3.11
Explanation: gross profit of refrigerator and freezers decreased by 3.91% over the same period of last year
mainly due to the rising price of raw materials and labors; while the gross profit of air-conditioners increased by
4.04% over the same period of last year mainly due to optimized products structure, strategic cost-saving and
improved bargaining ability of products.
2. Main business according to are of semi-annual 2011
Unit: RMB’0000
Increase
This period Last period or
decrease
of
Area
Main Gross Gross operation
business cost rate income cost rate income
income (%) (%) over last
year (%)
Sales in
452,477.4629 339,096.6852 25.06 389,428.3359 283,501.2783 27.20 16.19
domestic
Exported
64,377.4524 62,809.4325 2.44 39,478.8666 36,682.1783 7.08 63.07
products
Total 516,854.9153 401,906.1177 22.24 428,907.2025 320,183.4566 25.35 20.51
(II) In the report period, there is no material change happened to profit constitution, main business and
its structure, and profit-making ability of main business of the Company.
(III) In the report period, there is no other business activity which brings significant influence upon
profit.
(IV) Particular that investment income from single joint-stock company brings influence on the
Company’s net profit over 10% didn’t happen in the report period.
(V) Operation countermeasures in the second half year
In the second half year of 2011, faced with an unfavorable condition where the national industry policies quits,
the cost of production factors such as raw materials, labors and freight constantly grows and the capital
suppliers is in a tense situation, the operation pressure of the Company is still huge. The Company will
continuously accelerate the development of products, improve competitiveness of products, deepen quality
service and constantly deeply promote value-creation activities among people and so on according to some
fixed operation principles. Thus we will boost the performance and strive to keep a better increasing speed of
the performance.
1. Boost competitiveness of products surrounding the Product Up-gradation
Further deepen into the promotion of IPD project and improve the success ratio of new products development;
continuously perfect the management platform for technology, the standardization platform for technology, the
construction of public check platform; put more effort on technology development of medium and high end
products. We will strengthen products quality perfection, enhance the system check, the technology check and
the products check, perfect the track mechanism of quality loss; implement IE project, improve the
productivity thus further boost the products’ quality.
2. Boost marketing ability surrounding the Quality Service and the Reform and Innovation
20
Hefei Meiling Co., Ltd. Semi-annual Report 2011
After overall implementation of operation model of business division, the Company will further enhance the
supervisor on various business divisions, conduct normalized management, guaranty the operation and avoid
risks.
Domestic marketing businesses divisions insist on the For Refrigerators with Quality Service, Meiling Chases
Fairness, continuously deeply promote the Quality Service. Through innovative marketing and channels
expansion, accelerate exclusive agencies of Changhong Meiling, enhance data marketing, and boost sales
volume. Meanwhile, strengthen the standardized and normalized management and control of joint ventures;
promote the operation ability of joint ventures.
Overseas marketing business division will build a series of core products and a core area, improve the products
structure, and boost profitability and competitiveness of products.
Air-conditioners business division will further reinforce the cost control, timely regulate products structure,
enhance construction of supplier chain, rationally plan these resources, and keep a healthy and normal
increasing tendency.
3. Improve effectiveness surrounding the Optimized Cost
Fully exert the staffs’ initiative and proactively, deeply promote the value-creation activity among people,
conduct strategic cost-saving, comprehensively reduce the operation cost and realize performance promotion of
the Company.
4. Strengthen the internal management of the front affiliated companies, actively explore the external market
thus improve the profitability.
III. Corporate Investment in Period
(I) Internal and external investment in reporting period
1. Relevant events about completing the more investment in subsidiary Mianyang Meiling Refrigerators Co.,
Ltd
In the light of items invested with raised capitals from A stock non-public issue of 2010, the Company will
invest more in subsidiary Mianyang Meiling Refrigerators Co., Ltd (hereinafter referred to Mianyang Meiling)
with RMB 50 million thus construct a environmental protection and energy-saving refrigerators production line.
After this more investment, the registered capital of Mianyang Meiling reached RMB 100 million, including,
the Company contributed RMB 95 million with 95 percent, and the other shareholder Dongfang Zhongke
Meiling Microtherm Co., Ltd contributed RMB 5 million with 5 percents. This project completed its
registration procedure of industrial and commercial change on Feb. 23 of 2011.
The above events had been disclosed in Securities Times, China Securities Journal and Hong Kong
Commercial Daily as well as Juchao Website in form of notice (notice No. 2011-010) on Mar. 2 of 2011.
2. Investing and constructing Jiangxi Meiling Electrics Co., Ltd
Based on the development plan of refrigerators industry strategy and production basement in Jiangxi Jingde
Town, and combining the strategic removal of Jiangxi Meiling Refrigerators Co., Ltd (hereinafter referred to
Jiangxi Meiling), on Apr. 25 of 2011, the Company held the 45th meeting of the 6th Board of Directors which
reviewed and approved the Proposal of Investing and Constructing Jiangxi Meiling Electrics Co., Ltd, and
agreed that Mianyang Meiling and the Company invest and construct Jiangxi Meiling Electrics Co., Ltd
(Jiangxi Meiling Electrics) together. Through it, integrate resources and boost the strategic removal of Jiangxi
Meiling, thus build a Meiling Electrics Industrial Park gathering refrigerators and front supporting.
Two shareholders of Jiangxi Meiling Electrics totally invested RMB 80 million, including the Company
invested RMB 79 million while Mianyang Meiling RMB 1 million with cash. The registration capital of
21
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Jiangxi Meiling Electrics is RMB 50 million, including, RMB 49.375 million with 98.75 percents of the
Company and RMB 0.625 million with 1.25 percents of Mianyang Meiling. The remaining RMB 30 million
the shareholders invested will be calculated in capital surplus.
Till Jun. 30 of 2011, the industrial and commercial registration procedure of Jiangxi Meiling Electrics has been
completed.
The above events had been disclosed in Securities Times, China Securities Journal and Hong Kong
Commercial Daily as well as Juchao Website in form of notices (notice No. 2011-024) on Apr. 26 of 2011.
3. The removal and capacity expansion of subsidiary Jiangxi Meiling Electrics
Based on the development plan of refrigerators industry strategy and production basement in Jiangxi Jingde
Town, and combining the strategic removal of Jiangxi Meiling Refrigerators Co., Ltd, on May 27 of 2011, the
Company held the 46th meeting of the 6th Board of Directors which reviewed and approved the Proposal of
Removal and Capacity Expansion of Subsidiary Jiangxi Meiling Electrics Co., Ltd, and agreed that Jiangxi
Meiling Electrics constructs removal and capacity expansion for refrigerators production line with
environmental protection and energy-saving with total RMB 269.2412 million of investment, including, RMB
233.9272 million for intangible assets (land use right) and fixed assets and RMB 35.314 million for current
capital. Jiangxi Meiling Electrics needs to seek capital sources by itself. This construction will create a
productivity of 100 sets (double classes) of refrigerators with environmental protection and energy-saving.
The above events had been disclosed in Securities Times, China Securities Journal and Hong Kong
Commercial Daily as well as Juchao Website in form of notices (notice No. 2011-028) on May 28 of 2011.
4. The items in Pakistan of subsidiary Zhongshan Changhong Electrics Co., Ltd
In terms of overseas development strategy and operation requirements of subsidiary Zhongshan Changhong
Electrics Co., Ltd (hereinafter referred to Zhongshan Changhong), on Mar. 27 of 2011, the Company held the
46th meeting of the 6th board of directors which reviewed and passed the Proposal of Item in Pakistan of
Subsidiary Zhongshan Changhong Electrics Co., Ltd and agreed that Zhongshan Changhong invests USD 3.4
million in joint air-conditioners manufacture company and joint sales company in Pakistan thus build a
regional operation center in South Asian market, realize local assembly and sales of air-conditioners and other
relevant products, seek a new scale and profiting point in overseas market.
The above events had been disclosed in Securities Times, China Securities Journal and Hong Kong
Commercial Daily as well as Juchao Website in form of notices (notice No. 2011-028 and No. 2011-032) on
May 28 of 2011.
(II) Usage of raised capital and progress of invested items of the Company in reporting period
1. Usage of raised capital
Till Dec. 24 of 2010, the Company successfully issued 116.7315 million shares of A stocks to 8 specific
investors including Sichuan Changhong with price 10.28 yuan per share. Thus we collected total RMB
1,199,999,820.00. The net amount is RMB 1,177,954,320.00 deducting RMB 22.0455 million. Shinewing CPA
Ltd issued the Capital Verification Report No. XYZH2010CDA6021.
Till Jun. 30 of 2011 RMB 533,413,424.58 had been used thus RMB 647,340,704.55 remained (interest income
RMB 2,799,809.13 included).
Till Jun. 30 of 2011, the detailed storage of raised funds from non-public stock issue was as follows:
Balance (RMB ‘0000)
Interes
Bank of deposit Bank account Raised
t Total
capital
income
22
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Hefei, China Everbright Bank branches
Daoxiang Building Branch (Athena Luxury 76740188000018471
refrigerator production base project)
50,463.89 218.19 50,682.08
Communication Bank in Hefei Shouchun
Bridge Branch (freezer capacity expansion 341304000018010080590
project) 13,998.12 51.31 14,049.43
Bank of China Commercial and Industrial
Holdings Co., Ltd Hefei Changjiang Road
1302010229022129028
Branch (green energy-efficient refrigerators
capacity expansion project) -6.54 9.10 2.56
China Construction Bank Holdings Co., Ltd
Branch in Hefei Luyang Business Division 34001468608053006232
(supplemented current capital) -1.38 1.38 0.00
Total 64,454.09 279.98 64,734.07
Explanation: in the light of progress of capital usage in investment projects, the Company had used up the
raised funds from Commercial and Industrial Bank and Construction Bank. The Company included the deposit
interest of raised capital in corresponding investment items thus the usage amount is far lager than the actual
credited amount. Regarding the interest income of raised capital, the balance of raised capital in Commercial
and Industrial Bank and Construction Bank were respectively RMB 25,600 and 0. Including, till Jun. 30 of
2011 the specific bank account of raised capital in Construction Bank had been cancelled, and the one in
Commercial and Industrial Bank will be subsequently withdrawn.
Till Jun. 30 of 2011 the usage of raised capital from non-public issue of stocks is as follows:
Unit: RMB’0000
Used
raised Balance of raised amount of raised capital we
No. Name of items
capital capital (note 2) planed to use in investment
Manufacture basement of
1 22,536.11 50,682.08 73,000.00
Athena luxury refrigerators
2 Capacity expansion of freezers 16,001.88 14,049.43 30,000.00
Capacity expansion of
refrigerators with environmental
3 11,006.54 2.56 11,000.00
protection and energy-saving
(note 1)
4 Supplemental current capital 3,796.81 0.00 3,795.432
Total 53,341.34 64,734.07 117,795.432
Note 1: in terms of purpose of raised capital from non-public stock issue, the Company withdrew RMB 50
million from special account of raised capital (capacity expansion of environmental and energy-saving
refrigerators) in Commercial and Industrial Bank on Jan. 19 of 2011 to increase the capital of subsidiary
Mianyang Meiling Refrigerators Co., Ltd (hereinafter referred to Mianyang Meiling) for investment in
environmental and energy-saving refrigerators production line. The registration procedure about commercial
and industrial change of this time of capital increase had been completed on Feb. 23 of 2011. This part of
amount had been put on special management. Till Jun. 30 of 2011 as for specific account of raised capital, B
19,787,921.85 had been used and RMB 30,212,078.15 remained.
Note 2: the used raised capital and remaining raised capital in the above statement included deposit interest.
The raised capital for supplemental current capital had been used up and the special account for it had been
23
Hefei Meiling Co., Ltd. Semi-annual Report 2011
cancelled thus balance of special account of raised capital was 0. RMB 110 million was invested in capacity
expansion of environmental and energy-saving refrigerators, including, RMB 50 million was used in capital
increase of Mianyang Meiling for environmental and energy-saving refrigerators production line which
produces and processes environmental and energy-saving refrigerators. The increase capital had been done.
RMB 60 million had been used in R&D of environmental and energy-saving refrigerators, purchase of raw
materials and sales which had been used up. Thus book funds of the special account of raised capital had been
used up, waiting for cancellation.
Note 3: the raised capital includes deposit interests, thus the summation of the used raised capital and balance
was more than the raised capital we planed to use. The difference refers to interest income.
Note 4: to premise a highest service effienciency of the raised capital, after the settle down of raised capital, the
Company temporarily stored partial raised capital in form of deposit receipt in accordance with usage progress
of capital for items.
Till present, the application of raised capital hasn’t been changed.
24
Hefei Meiling Co., Ltd. Semi-annual Report 2011
2 The actual usage of raised capitals of this year
Comparison table of the actual usage of raised capitals till 30, Jun. of 2011
Unit: RMB (0000)
Total raised capitals 117,795.4320 Total raised capitals used in this year 53,341.34-
Total transferred raised capitals 0-
Total raised capitals used accumulated 53,341.34-
Proportion of total transferred raised capitals 0.00%
Committed Projects changed Total committed Total investment Amount of Amount of Investmen Predicted useable Reali Reach Project
investment or not (including investment of after regulation investment of this accumulated t program date of project zed the feasibilit
projects changed partially) raised capitals reporting period investment till till the intere predic y was
the period-end period-en sts ted changed
(2) d intere hugely
(3)=(2)/(1 st or or not
) not
Athena
The first stage of
Luxury
project: 2011.12 Un-chan
refrigerator Un-changed 73,000.00 73,000.00 22,536.11 22,536.11 30.87% - N/A
The second stage ged
production
of project:2012.12
base project
25
Hefei Meiling Co., Ltd. Semi-annual Report 2011
The first stage of
Freezer
project: 2011.1 Un-chan
expansion Un-changed 30,000.00 30,000.00 16,001.88 16,001.88 53.34% - N/A
The second stage ged
project
of project: 2012.1
Expansion
project of
environmenta Un-chan
Un-changed 11,000.00 11,000.00 11,006.54 11,006.54 100.06% 2010.12 - N/A
l and ged
energy-saving
refrigerators
Supplementar Un-changed 3,795.432 3,795.432 3,796.81 3,796.81 100.04% - N/A Un-chan
Total 117,795.432 117,795.432 53,341.34 53,495.89
Reason for falling behind the target advance (By project) N/A
Statement for major change of project feasibility N/A
Change of implementation place of investment project of raised capitals N/A
Regulation of implementation ways of investment project of raised capitals N/A
Preliminary investment and replacement of investment project of raised Details on statement 2
Temporarily supplement for the current capitals with idle raised capitals Details on supplementary current capital
Amount and reason for surplus of raised capitals when implementing N/A
Other usage of raised capitals N/A
26
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Explanation 1: the actual invested capital in capacity expansion of Athena luxury refrigerators, capacity
expansion of freezers and capacity expansion of environmental and energy-saving refrigerators was less than
the capital we planed to use, because the above items hadn’t been completed, and in the light of relevant terms,
the accounts such as infrastructure and equipments of items were paid one by one in the light of
implementation schedule and contract agreement. The period-end investment progress of supplementary
current capital has been beyond 100% mainly due to the used raised capital included deposit interest of raised
capital.
Explanation 2: Substitution of preliminary investment in invested items of funds raised.
Shine Wing Certified Public Accountants Co., Ltd. the Company engaged made special approval on particulars
of self-collecting capitals investing in invested items of funds raised of non-public stock issue since Jan. 15,
2011. According to the approval, till Jan. 15, 2011, the particulars of self-collecting capitals investing in
invested items of funds raised are as follows:
No. Name of projects Invested amount from
1 Athena Luxury refrigerator production base 241,684.00
2 Freezer expansion project 72,959,508.44
3 Expansion project of environmental and 15,580,344.77
Total 88,781,537.21
Note: part of the above accounts will be calculated by means of bank acceptance bills and negotiable
endorsement of bank acceptance bills.
Shine Wing Certified Public Accountants Co., Ltd. has issued the Special Approval Report about Hefei Meiling
Co., Ltd’s Self-collecting Capitals Investing in Invested Items of Funds Raised (XYZH/2010CDA6038）on Jan.
17, 2011. The substitution was agreed by the sponsor institution China Merchants Securities Co., Ltd, and was
reviewed and approved on the 41st meeting of the 6th Board of Directors. And at the same time, the independent
directors, board of supervisors issued concurring opinion.
3. Particular about the circulating capital supplementation from idle raising fund
For purpose of reducing the financial cost, higher the efficiency of raising fund, the Proposal of temporary
supplementation of circulating capital from partial idle raising fund has been deliberated and approved by 43rd
Meeting of 6th Session of the Board and 14th Meeting of 6th Session of Supervisors. Partial raising fund was
consented for temporary supplementation for circulating capital under the premise of no impact on the
investment project implementation, amount of 60 million yuan raised fund within 6 months term, which is from
25 March 2011 to 25 September 2011. The abovementioned event has been published on Securities Times,
China Securities Journal, Hong Kong Commercial Daily and Juchao Website as notice( No.: 2011-017, No.:
2011-018 and No.: 2011-019) dated March 26, 2011.
The used idle raised fund of 60 million yuan has been returned to the specific raised fund account on time dated
2 June 2011. The abovementioned event has been published on Securities Times, China Securities Journal,
Hong Kong Commercial Daily and Juchao Website as notice( No.: 2011-033) dated June 3, 2011.
For purpose of maximized the usage of raising fund, reduced the financial expenses, lower the operational cost
and under the premise of ensure the capital requirement for investment project, the Proposal of temporary
supplementation of circulating capital from partial idle raising fund has been deliberated and approved by 47th
Meeting of 6th Session of the Board, 16th Meeting of 6th Session of Supervisors and 2nd Extraordinary
Shareholders’ General Meeting 2010. Partial raising fund was consented for temporary supplementation for
circulating capital, amount of 500 million yuan within 6 months since the date of approval day from
Shareholders’ General Meeting, which is from 23 June 2011 to 23 December 2011. Furthermore, use and
manage the capital by regulations and return the capital on time to specific raising fund account. The event has
been approved by the sponsor institution—China Merchants Securities Co., Ltd., meanwhile, independent
directors and supervisors shows favor opinions for that. The abovementioned event has been published on
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website as notice( No.:
27
Hefei Meiling Co., Ltd. Semi-annual Report 2011
2011-034, No.: 2011-035, No.: 2011-037 and No.: 2011-042) dated June 8, 2011 and June 24, 2011
respectively.
The Company withdraws idle capital 150 million yuan for circulating capital supplementation from Daoxiang
Buld. Sub-branch, China Everbright Bank, Hefei Branch (A/C: 76740188000018471) on 24 June 2011. Idle
capital of 17 million yuan was withdraw from Hefei Shouchunluqiao Sub-branch of Bank of Communication
(A/C: 341304000018010080590) on 30 June, 2010 for circulating capital supplementation. The Company will
strictly perform relevant obligations to return the idle capital to monitoring account for raising fund within 6
months since the date of approved by Shareholders’ General Meeting.
4. Particular about the raising fund of investment projects
(1) Manufacture bases of Athena Luxury refrigerator
The foundation project of 3# main plant and product warehouse (building area of 100, 000 m2) for Athena
luxury refrigerator base have been completed. The bidding for steel structure project was settling, and the
components processing was conducting by construction units. Cushion of the floor was implemented and main
steel structure will decorate recently. The fire protection of 3# product warehouse still in programming and
applying, civil construction bidding was in practice, meanwhile the pile foundation was implementing.
Meanwhile, according to the process layout of manufacture base for Athena luxury refrigerator, the following
works were in process: technique communication for the manufacture equipment, equipment option,
preparation of the bidding paper, bidding and purchase, contract and the assignment of technical agreement,
supervisor in process of manufacture and installation and debugging. Among which, the bidding for export
equipment and domestic heavy equipment has been finished, and part of the equipment was in process of
installation and debugging.
The above mention project of basic construction and equipment project were conducted according to the project
planning and project schedule. Till end of 30 June 2011, accumulated capital of 75.3611 million yuan was
invested in manufacture base project of Athena luxury refrigerator.
(2) Capacity expansion item of freezer
This project’s building area is about 133000m2 while the main buildings comprises No. 7 plant (single-story
steel plant with construction area 43000m2), No. 8 plant (two-stories steel plant with construction area
58000m2), No. 9 plant (single-story steel plant with construction area 30000m2), motion subsidiary plant
(frame construction with area 2000m2). Till Jun. 30 of 2011, the land and plant construction of the first phase
of the freezers item had been completed, and the equipments had been installed, the modification had been
done and put into production.
Till Jun. 30 of 2011 RMB 108.1981 million had been cumulatively put into the first phase of the freezers item.
(3) Capacity Extension of Environment Protection and Energy Saving Refrigerator
The capacity expansion of environmental and energy-saving refrigerators had been put into production and it
operated well.
5. Usage of capitals invested in changed items
There had been no usage of capitals invested in changed items of the Company in this year.
6. Usage of raised capital and problems existing in disclosure
The Company had established and perfected administration system for raised capital of listed companies, and
guaranteed its effective implementation. The condition concerning storage and usage of raised capital had been
disclosed timely, truly, accurately and completely. There existed no condition against the management system
for raised capital.
IV. Routine of Board in reporting period
28
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Date & session Contents Newspaper for disclosure
Reviewed and approved 4 proposals such as the
Proposal of Increasing Registration Capital of the
Company, the Proposal of Revising Partial Terms of
20 Jan. 2011
Articles of Association, the Proposal of Replacing the Securities Times Hong
41st of 6th of
Self-Collecting Capital Invested in Items by Raised Kong Commercial Daily
Board Meeting
Capital with Raised Capital and the Proposal of Storing
Land Use Right of Jiangxi Meiling Refrigerators Co.,
Ltd.
Reviewed and approved 21 proposals such as the
Securities Times
7 Mar. 2011 Summary and Full Text of 2010 Annual Report, the
China Securities Journal
42nd of 6th of Pre-plan of 2010 Annual Profit Distribution and the
Hong Kong Commercial
Board Meeting Proposal of Budgeting the Quality Service Fees of
Daily
Meiling Refrigerators.
Reviewed and approved 3 proposals such as the
2011-3-25 Proposal of Supplementing Temporarily Current Capital Securities Times
The 43rd meeting with Idle Raised Capital, the Proposal of Zhongshan China Securities Journal
of the 6th board of Changhong Selling Land Use Right and the Proposal of Hong Kong Commercial
directors Holding 2011 the 1st Extraordinary Shareholders’ Daily
Meeting.
2011-4-15 Reviewed and approved 2 proposals such as the
The 44th meeting Proposal of Transferring Equity the Company Held
-
of the 6th board of From Anhui Union Technology Property Right
directors Exchange Co., Ltd.
Reviewed and approved 7 proposals such as the 2010
2011-4-25 Securities Times
the 1st Seasonal Report, the Proposal of Election at
The 45th meeting China Securities Journal
Expiration of Office Term of the 7th Board of Directors
of the 6th board of Hong Kong Commercial
and the Proposal of Investing and Constructing Jiangxi
directors Daily
Meiling Electrics Co., Ltd.
Reviewed and approved 5 proposals such as the
2011-5-27 Securities Times
Proposal of Holding 2010 Annual Shareholders’
The 46th meeting China Securities Journal
Meeting, the Proposal of Removal and Capacity
of the 6th board of Hong Kong Commercial
Expansion of Jiangxi Meiling Electrics Co., Ltd and the
directors Daily
Proposal of Discreting Hefei Meiling Package Co., Ltd.
Reviewed and approved 2 proposals such as the
2011-6-7 Securities Times
Proposal of Replacing the Self-Collecting Capital
The 47th meeting China Securities Journal
Invested in Items by Raised Capital with Raised Capital
of the 6th board of Hong Kong Commercial
and the Proposal of Holding 2011 the 2nd Extraordinary
directors Daily
Shareholders’ Meeting.
Reviewed and approved 3 proposals such as the
2011-6-20 Securities Times
Proposal of Electing President and Vice President of the
The 1st meeting of China Securities Journal
7th Board of Directors, the Proposal of Engaging Senior
the 7th Board of Hong Kong Commercial
Executives and the Proposal of Electing Special
Directors Daily
Commission for the 7th Board of Directors.
2011-6-25 Reviewed and approved 1 proposal which is the -
29
Hefei Meiling Co., Ltd. Semi-annual Report 2011
nd
The 2 meeting of Proposal of Applying RMB 0.12 billion Loans from
the 7th Board of China Import and Export Bank Anhui Branch.
Directors
In the Periodical, the Company held another three Shareholders’ General Meeting. On Apr. 11 of 2011 the
Company held the 2011 1st extraordinary shareholders’ meeting which reviewed and passed the Proposal of
Confirming Amount of Credit Guarantee for Subordinate Wholly-owned or Controlled Subsidiaries the
Company Offers in 2011. On Jun. 20 of 2011 the Company held the 2010 annual shareholders’ meeting which
passed 16 proposals such as the 2010 Annual Work Report of Board of Directors, the Annual Work Report of
2010 Board of Supervisors, the Summary and Full Text of 2010 Annual Report, the Proposal of Election at
Expiration of Office Term of the 7th Board of Directors and the Proposal of Election at Expiration of Office
Term of the 7th Board of Supervisors. On Jun. 23 of 2011 the Company held the 2nd extraordinary shareholders’
meeting which passed the Proposal of Replacing the Self-Collecting Capital Invested in Items by Raised
Capital with Raised Capital.
All the above events were disclosed in Securities Times, China Securities Journal, and Hong Kong Commercial
Daily as well as in http://www.cninfo.com.cn, the designated website by the CSRC, and you can enquiry by
inputting the Company’s stock code in Personal Stock Inquiry.
V. the Financial Report of this semi-annual report have not been audited
30
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Section VI. Significant Events
I. Corporate Governance
In the Period, pursuant to the requirements of Company Law, Securities Law, Governance Ordinance of Listing
Company and Regulation of Stock Listing in Shenzhen Stock Exchange together with relevant law and rule, the
Company continued establishing and perfecting the Corporate Governance Structure, enforced information
disclosure, established and improved internal management and control systems, launch the corporate
governance campaign continually and deeply, standardized the corporate operation and improved the corporate
governance. At present, all corporate systems are basically healthy and complete, business operation standard,
legal person structure perfect, which are up to requirements of standardization documents for listed company’s
governance announced by CSRC.
II. Option Incentive Scheme in Period
In the period, the Company has not made out or implemented the Option Incentive Scheme.
III. Particular about the deliberation on profit distribution preplan in 2010
Based on the auditing by Shine Wing CPA, individual statement of the Parent Company shows 327,015,262.81
yuan in net profit of 2010. Being statutory surplus fund withdrawal, 32,701,526.28 yuan, and previously losses
making up by use of surplus-- 38,211,546.96 yuan, which was consent by Shareholders’ General Meeting of
2009, there has retained profit accumulating as 293,529,748.86 yuan in the individual statement of Parent
Company for 2010.
Pursuit to relevant laws, Article of Association and take shareholders’ interest into consideration as well as the
long-term expectation requirement, the Company consents stock dividend as 2 for every 10 shares, 0.5 yuan
(tax included) by cash to all shareholders based on the total share capital of 530,374,449 shares dated
December 31, 2010. Totaling 132,593,612.25 yuan (accounts 45.17% of the distributable profit available for
share by shareholders that realized in 2010) will for distribution this time. Rests of retained profit will carry
forward for distribution in later years.
The abovementioned distribution preplan for 2010 have been approved and deliberated by Shareholders’
General Meeting 2010 dated June 20, 2011. The Company will perform the distribution in accordance with
relevant laws and regulations.
IV. Particular about significant lawsuits and arbitrations of the Company in the report period
After acquisition of 100% state-owned property of Hefei Meiling Group Holding Co., Ltd. (“Meiling Group”),
based on the principle of unify usage and integrated management on the trademark and trade name of “Meiling”,
protected the independently and integration of ‘Meiling”, the Company checking and inspecting the situation of
trademark and trade name authorized externally for Meiling Group. The Agreement of Trademark Licensing
signed between Meiling Group and Hefei Meiling Small Appliance Co., Ltd. on January 20, 2003 meets no
conditions any more, and dismissal the agreement for cancellation situation required. Therefore, Meiling Group,
subordinate subsidiary of the Company, files a suit to Intermediate People’s Court of Hefei City on October 21,
2010 for rescission of Agreement of Trademark Licensing. The first instance has been closed, and waiting the
judgment recently.
V. Particular about the purchases and sales of significant assets and assets reorganization in report
period
(I) Asset Acquisition
1. Purchase of the land use right of Jiangxi Changhong by Jiangxi Meiling Electric Appliance —subsidiary of
31
Hefei Meiling Co., Ltd. Semi-annual Report 2011
the Company
According to the strategy of refrigerator industry, development plan for new manufacture base in Jiangxi
Jingde Town and the combination of moving strategy of Jiangxi Meiling Cooling Co., Ltd., the Company
provides infrastructure support for new manufacture bases. On May 27, 2011, being approved by the 46th
Meeting of 6th Session of the Board, the land use right (totaling area of 200,267.38 m2 with land certificate
No.0225 JTGY(2008)) owned by Jiangxi Changhong Electronic Technology Development Co., Ltd. (“Jiangxi
Changhong”)—subordinate company of Huayi Compressor Co., Ltd. (“Huayi Compressor”), was purchased by
agreement by Jiangxi Meiling Electric Appliance, subsidiary of the Company. Based on the Appraisal Report
No. 236 ZLPBZi[2011] issued by China United Assets Appraisal Group Co., Ltd., the subject assets value
42.657 million yuan with 2.1869 million yuan by appreciation, 5.40% as appreciation rate. Concerning the
transfer price for the land use right abovementioned, 42.657 million yuan was determined by negotiation
between Jiangxi Meiling Electric Appliance and Jiangxi Changhong for transfer. The Transfer Agreement of
Land Use Right have been signed between the two parties, transfer amount was paid by Jiangxi Meiling
Electric Appliance by agreement. The ownership of land use right still in process for transfer.
The abovementioned event has been published on Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website as notice( No.: 2011-028 and No.: 2011-030) dated May 28, 2011.
(II) Sales of Assets
1. Land use right reservation of Jiangxi Meiling Cooling Co., Ltd. –subsidiary of the Company
With the purpose of stimulating the assets reservation of Jiangxi Meiling Cooling Co., Ltd. (“Jiangxi Meiling
Cooling”), raising construction capital for strategy moving, perfection the assets’ structure of Jiangxi Meiling
Cooling, higher the quality of assets continuously as well as the combination of city plan of Jiangde Town
government, the Proposal of Land Use Right Reserve by Jiangxi Meiling Cooling Co., Ltd. was deliberated
and approved by 41st Meeting of 6th Session of the Board on January 20, 2011. The State-owned land use right
reserve contract was signed between the Jiangxi Meiling Cooling and Land Reserve Center of Jingde Town
City by consented. The land use right of are of 159,448.8 m2 (239.17 mu by converted), No.0121 JTGY(2010),
located on Guanzhuang, Cidu Avenue, owned by Jiangxi Meiling, deliver to Land Reserve Center of Jingde
Town City for reserve with reserve compensation amounting to 65 million yuan. At present, agreement by the
State-owned land use right reserve contract, 64 million yuan has been received as compensation by Jiangxi
Meiling, other one million yuan will receive as soon as possible while land transfer tonally.
The abovementioned event has been published on Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website as notice( No.: 2011-004and No.: 2011-006) dated January 21, 2011.
2. Land use right transfer by agreement to Guangdong Digital from Zhongshan Changhong—subsidiary of the
Company
With the purpose of stimulating the assets of Zhongshan Changhong Electric Appliance Co., Ltd. (“Zhongshan
Changhong”), perfection the assets’ status, increasing the income of assets disposal and cash inflow, the
Proposal of Sales of Land Use Right from Zhongshan Changhong Electric Appliance Co., Ltd. was deliberated
and approved by 43rd Meeting of 6th Session of the Board on March 25, 2011.
The land use right of 21,713.3 m2 owned by Zhongshan Changhong (Land certificate No.: 021955
ZFGY(2003); industry-used land for nature) was consented to transfer by agreement to Guangdong Changhong
Digital Technology Co., Ltd. (“Guangdong Digital”). Based on the appraisal result from Guangdong China
United Yangcheng Assets Appraisal Co., Ltd., the subject assets valued 14.84 million yuan with 528.87% as
appreciation rate. Concerning the transfer price for the land assets abovementioned, 14.84 million yuan was
determined by negotiation between Zhongshan Changhong and Guangdong Digital for transfer. Being prior
32
Hefei Meiling Co., Ltd. Semi-annual Report 2011
consented and approved by independent directors, related directors avoiding the vote. Till recently, the transfer
amount has been received and relevant ownership transfer procedures still in process.
The abovementioned event has been published on Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website as notice( No.: 2011-017 and No.: 2011-020) dated March 26, 2011.
VI. Significant related transaction in report period
(I) Related purchase
1. Pricing policy
The Company’s purchase of materials from related enterprises was all conducted in the form of public bidding
according to market prices.
2. Statement on the purchase of goods from related parties
Amount at same period of last
Type of related parties Amount in this period
year
and name of related
Amount(RMB’0000) Proportion Amount(RMB’0000) Proportion
Parent company and
ultimate controller
In which: Sichuan
Changhong Electric 4,325.87 0.79 3,665.57 0.94
Appliance Co., Ltd
Other enterprise under the control of same parent company and ultimate controller
In which: Sichuan
Changhong Minsheng 2,859.19 0.74
Logistics Co., Ltd.
Huayi Compressor Co.,
27,599.97 5.07 20,457.92 5.27
Ltd.
Sichuan Changhong
Mould & Plastic 22,273.94 4.09 11,292.04 2.91
Technology Co., Ltd.
Sichuan Changhong
6,469.11 1.19 8,973.03 2.31
Jijia Fine Co., ltd.
Sichuan Hongxin
70.00 0.02
Software Co., Ltd.
Mianyang Hongfa
3.52 0.00 10.59 0.00
Mode Design Co., ltd.
Sichuan Changhong
Packing Printing Co., 1,380.62 0.25 1,618.73 0.42
Ltd.
Sichuan Changhong
Power Limited Liability 0.39 0.00
Company
Sichuan Changhong
Dongyuan Fine 2,118.58 0.39 1,886.66 0.49
Equipment Co., Ltd.
Sichuan Changhong 86.83 0.02 119.53 0.03
33
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Fine Electric Technology
Co., Ltd.
Sichuan Changhong
Device Technology Co., 1,315.90 0.24 1,083.60 0.28
Ltd.
081 Electronic Group
Sichuan Liyuan 526.56 0.10
Electronic Co., Ltd.
Sichuan Changhong New
Energy Technology Co., 39.70 0.01 30.14 0.01
Ltd.
Sichuan Liyuan
375.08 0.10
Electronic Co., Ltd
Mianyang Hongrun
724.98 0.13
Electronic Co., Ltd.
Guangdong Changhong
46.76 0.01 1.05 0.00
Electronic Co., Ltd.
Zhongshan Guanghong
Mould-Plastic 31.97 0.00 10.7 0.00
Technology Co., Ltd.
Affiliated enterprises of controlling shareholders and actual controller
Sichuan Changhe
78.47 0.01 79.40 0.02
Technology Co., Ltd.
Sichuan Changxin
Refrigeration Component 8,227.50 1.51 238.83 0.06
Co., Ltd.
Sichuan Jinghong
Packing Products Co., 1,697.76 0.31 413.61 0.11
Ltd.
Sichuan Hongyu Metal
Manufacture Limited 45.79 0.01 35.25 0.01
Liability Company
Total 76,993.83 14.13 55,699.25 14.34
(II) Associated sales
1. Goods sold to related party were performed publicly on market price of same type
2. Details of goods sold to related parties
Amount at same period of last
Type of related parties Amount in this period
year
and name of related
Amount(RMB’0000) Proportion Amount(RMB’0000) Proportion
Parent company and ultimate controller
In which: Sichuan
Changhong Electric 62,871.58 11.49 57,743.39 12.62
Appliance Co., Ltd
Other enterprise under the control of same parent company and ultimate controller
In which: 48.33 0.01 3,043.97 0.67
34
Hefei Meiling Co., Ltd. Semi-annual Report 2011
PT.CHANGHONG
ELECTRIC IND
Sichuan Changhong
2,102.69 0.38 2,152.78 0.47
Jijia Fine Co., Ltd.
Sichuan Changhong
Mould-Plastic 5,290.03 0.97 4,013.21 0.88
Technology Co., Ltd.
Sichuan Hongshi
Display Technology Co., 105.59 0.02
Ltd.
Mianyang Lejiayi
Commerce Chain Co., 464.51 0.08 95.35 0.02
Ltd.
Jiangxi Changhong
Electronic Technology 6.76 0.00
Development Co., Ltd.
Sichuan Changhong
Fine Electronic 125.87 0.03
Technology Co., Ltd.
Sichuan Changhong
Xinrui Technology Co., 167.59 0.03 62.61 0.01
Ltd.
Sichuan Changhong
International Hotel
26.41 0.00 0.39 0.00
Limited Liability
Company
Chongqing Hong Life
82.11 0.02 25.25 0.01
Commerce Co., Ltd.
Huayi Compressor
2.74 0.00
Co., Ltd.
Sichuan Changhong
Device Technology Co., 13.33 0.00
Ltd.
Kunming Yijiahong
5.93 0.00
Commerce Co., Ltd.
Sichuan Changhong
Electronic System Co., 3.09 0.00
Ltd.
Fuzhou Lejiayi
0.20 0.00 -1.05 0.00
Commerce Co., Ltd.
Jinan Lejiayi
1.65 0.00
Commerce Co., Ltd.
Sichuan Hongou
458.59 0.10
Display Device Co., Ltd.
Sichuan Changgong 41.09 0.01
35
Hefei Meiling Co., Ltd. Semi-annual Report 2011
New Energy Technology
Co.,Ltd.
Guangdong
Changhong Electronic 47.60 0.01
Co., Ltd.
Guangdong Changhong
Digital Technology Co., 3.92 0.00
Ltd.
Sichuan Changhong
Dongyuan Fine 0.44 0.00
Equipment Co., Ltd.
Wandao Network
113.53 0.02
Technology Co., Ltd.
BVCH Optronics
30.00 0.01
(Sichuan) Corp.
Sichuan Changhong
Gerun Renewable 13.53 0.00
Resources Co., Ltd.
Changhong Electrical
Appliance (Australia) 1,012.98 0.19 221.03 0.05
Co., Ltd.
Zhongshan Guanghong
Mould-Plastic 27.19 0.00 10.00 0.00
Technology Co., Ltd.
Sichuan Changhong
Packing Printing Co., 0.38 0.00 10.95 0.00
Ltd.
Sichuan Changhong
Minsheng Logistic
23.85 0.00 18.46 0.00
Limited Liability
Company
Sichuan Kuaiyidian
Electrical Appliance 264.84 0.05 0.38 0.00
Service Chain Co., Ltd.
Affiliated enterprise of controlling shareholders and actual controller: Nil
Joint venture and affiliated enterprise
In which: Guangyuan
Meiling Electrical
1,318.83 0.24 1,386.35 0.30
Appliance Marketing
Co., Ltd.
Changzhou Meiling
Electrical Appliance 1,149.93 0.21 636.63 0.14
Marketing Co., Ltd.
Guangxi Meiling
7,642.73 1.40 939.60 0.21
Electrical Appliance
36
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Marketing Co., Ltd.
Haozhou Meiling
Electrical Appliance 2,161.30 0.39 1,671.99 0.37
Marketing Co., Ltd.
Xuancheng Meiling
Electrical Appliance 2,247.09 0.41
Marketing Co., Ltd.
Jiujiang Meiling
Electrical Appliance 4,123.74 0.75 1,716.17 0.38
Marketing Co., Ltd.
Fuyang Meiling
Electrical Appliance 6,561.33 1.20
Marketing Co., Ltd.
Total 97,895.77 17.88 76,836.06 16.79
(III) Other daily related transactions
More details found in Note of Financial Statement.
(IV) The daily related transaction occurred with related parties predicted at year-begin of 2011
was no more than 2,995 million yuan and the amount of daily related transaction occurred in
first half of 2011 approximately amounting to 1615.8224 million yuan, 53.95 percent of the
prediction amount at year-begin.
(V) Particular about the credit and debt occurred between the Company and related parties or
guarantee in report period
1. Particular about credit and debts between the Company and related parties
Capital offer to
Capital offer to listed company from
Relationship with related parties from
Name of the related parties
the listed listed company
related parties
company Occurred
Balance Occurred amount Balance
amount
Sichuan
Changhong
Parent company - - 2,042,072.45 2,647,627.55
Electric Appliance
Co., Ltd
Sichuan Other enterprise
Changhong controlled under
Minsheng Logistic same parent - - 1,785,325.10 1,874,584.26
Limited Liability company and
Company ultimate controller
Sichuan Other enterprise
Changhong controlled under
Mould-Plastic same parent - - - 320,000.00
Technology Co., company and
Ltd. ultimate controller
Sichuan Other enterprise
- - - 170,000.00
Changhong Jijia controlled under
37
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Fine Co., Ltd. same parent
company and
ultimate controller
Sichuan Other enterprise
Changhong controlled under
Dongyuan Fine same parent - - 500,000.00 500,000.00
Equipment Co., company and
Ltd. ultimate controller
Sichuan Other enterprise
Changhong Gerun controlled under
Renewable same parent - - 10,000.00 10,000.00
Resources Co., company and
Ltd. ultimate controller
Affiliated
Sichuan Changhe enterprise of
Technology Co., controlling - - 50,000.00 0.00
Ltd. shareholders and
actual controller
Total 4,387,397.55 5,522,211.81
In which: no capital offer to controlling shareholders and its subsidiary from listed company in report
period.
2. Particular about guarantee between the Company and related parties in report period
Till end of 30 June 2011, the Renminbi borrowing guarantee by Sichuan Changhong Electric Group
amounting to 50 million yuan at balance of period-end, and balance of bank acceptance for the Company
amounting to 0 yuan.
(V) Other related transactions
1. Land use right of Jiangxi Changhong Electronic purchased by Jiangxi Meiling Electric Appliance
Found details in “Purchase of the land use right of Jiangxi Changhong by Jiangxi Meiling Electric
Appliance” of item one contained in (I), “V” of Section VI.
2. Land use right transfer by agreement to Guangdong Changhong Digital Technology from Zhongshan
Changhong
Found details in “Land use right transfer by agreement to Guangdong Changhong Digital Technology from
Zhongshan Changhong” of item two contained in (II), “V” of Section VI.
VII. Material contracts and their implementations in the report period
(I) there are no major trust, contract, lease of other company’s assets or items entrusted, contracted,
leased of the Company.
(II) Material guarantee contracts
Except for the controlling subsidiaries of the Company, there are no any legal people or nature person received
guarantee from the Company. All guarantees provided to controlling subsidiaries based on the loans arising
from supporting their operations, and all in warrantee. Meanwhile, the subordinated controlling
non-wholly-owned companies all provided relevant counter-guarantee for the guarantee offer by the Company.
As at the end of 30 June 2011, the external guarantee and guarantee for subsidiaries are as followed:
Unit: In RMB (’0000)
External guarantees (excluding guarantees for subsidiaries)
38
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Date of For
Relevant happening Actual Accompl related
Guarantee’s Guarantee Guarant Guarantee
disclosure (date of guarantee ished or parties or
name amount ee type term
date /No. agreement amount no not (yes
signing) or no)
N/A
Total of external guarantee Total of actual external
0 0
approved in Period(A1) guarantee in Period(A2)
Total of external guarantee Total of actual external
0 0
approved at Period-end(A3) guarantee at Period-end(A4)
Guarantee for subsidiaries
Date of For
Maximu
Relevant happening Actual Accompl related
Guarantee’s Guarantee m Guarant Guarantee
disclosure (date of guarantee ished or parties or
name amount guarantee ee type term
date /No. agreement amount not not (yes
limit
signing) or no)
2010-4-22
Sichuan
No.:2010-0
Chuanghong
24; Jointly
Air 20,000.00 2010-06-01 8,000.00 3787.69 1 year Not No
2011-4-11 liability
Conditioner
No.:2011-0
Co., Ltd.
22
Zhongke
2010-8-6
Meiling
2010-041;
Cryogenic Jointly
2011-4-11 2,000.00 2010-08-01 2,000.00 0 1 year Not No
Technology liability
No.:2011-0
Limited
22
Liability Co.
Zhongshan
Changhong 2011-4-11 No
Jointly
Electric No.:2011-0 15,000.00 2011-04-11 5,000.00 0 1 year Not
liability
Appliance 22
Co., Ltd
Meiling
Yingkaite No
Household Jointly
400.00 2009-06-22 400.00 0 3 years Not
Appliance liability
(Hefei) Co.,
Ltd.
Yingkaite
Electric Jointly No
200.00 2009-06-22 200.00 0 3 years Not
Appliance liability
Co., Ltd.
39
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Hefei Meiling
Packaging Jointly No
1,000.00 2010-07-09 1,000.00 0 3 years Not
Products Co., liability
Ltd.
Hefei Meiling No
2011-4-11
Packaging Jointly
No.:2011-0 8000.00 0.00 0 1 year
Products Co., liability
22
Ltd.
Hefei Meiling
2011-4-11
Nonferrous Jointly No
No.:2011-0 6,000.00 2011-06-10 1,700.00 0 1 year Not
Products Co., liability
22
Ltd.
Total of guarantee for
Total of actual guarantee for
subsidiaries approved in 51,000.00 3787.69
subsidiaries in Period (B2)
Period (B1)
Total of guarantee for Total of actual guarantee for
subsidiaries approved at 51,000.00 subsidiaries at Period-end 3787.69
Period-end (B3) (B4)
Total of Company’s guarantee（namely total of the large two aforementioned）
Total of actual guarantee in
Total of guarantee approved
51,000.00 the Period 3787.69
in the Period (A1+B1)
(A2+B2)
Total of guarantee approved Total of actual guarantee at
at Period-end 51,000.00 Period-end 3787.69
(A3+B3) (A4+B4)
The proportion of the total amount of actually guarantee in the net assets
of the Company(that is A4+ B4) 1.39%
Including:
Guarantee for shareholders, actual controllers and related parties(C) 0.00
Debt guarantee for guarantee objects of direct/indirect asset liabilities 3787.69
above 70% (D)
Guarantee totaled above net assets 50%(E) 0.00
Total of three guarantees aforementioned (C+D+E) 3787.69
Explanations on possible affiliated redemption responsibilities for undue
N/A
guarantees
The abovementioned guarantee objects refers to the wholly-owned company or controlling subsidiary of the
Company which shows normal operational business without overdue payment occurred and have the guarantee
risk in control. In the report period, maximum guarantee amount offer to the subsidiary from the Company
amounting to 183 million yuan and with actual guarantee amount of 37.8769 million yuan. Except the
guarantee for subsidiary of Sichuan Changhong Air-conditioner Co., Ltd., Zhongke Meiling Cryogenic
Technology Company LTD, Hefei Meiling Nonferrous Metal Products Co., Ltd.. Zhongshan Changhong
Electric Co., Ltd. and Hefei Meiling Package Products Co., Ltd., guarantees from the Company were formed
historically before 100% equity of Meiling Group transfer by agreement from the Company. As at end of 30
June of 2011, the subsidiaries (that is the controlling enterprise of the Company indirectly) that in the transfer
assets range obtained totaling guarantee ceiling of 16 million yuan from Meiling Group with actually amount of
0 yuan in guarantee.
40
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(III) No cash assets management entrusted in report period
VIII. Other Significant Events
(I) Separation of the Hefei Meiling Packaging Products Co., Ltd
According to the Contract of Property Right Transfer signed between the Company and Hefei Xingtai Holding
Group Co., Ltd. (“Xingtai Holding”) in March 2010 and the Reply of Free Conversion of Partial Assets and
Liabilities owned by Meiling Group issued by SASAC of Hefei City in April 2010, the Company transfers
100% state-owned property of Meiling Group owned by Xingtai Holding, which was separated partial assets
liabilities. Relevant corresponding assets and liabilities will base on the Appraisal Report No. 018
WBPBZ[2009] issued by Anhui Baoshen Assets Appraisal Co., Ltd. The appraisal report state that among the
51.72% equity (other 48.28% equity was held by the Company) of Hefei Meiling Packaging Products Co., Ltd.
(“Meiling Packaging”) owned by Meiling Group, part of the assets liabilities were excluding the transfer range,
being consented by SASAC of Hefei City, the corresponding interest of out-of-range assets liability will
transfer to Hefei Xingtai Assets Management Co., Ltd. (“Xingtai Assets”)—subordinate subsidiary of Xingtai
Holding for free.
Being negotiation between the Company and Xingtai Holding, the two parties share 51.72% and 48.28%
disposal and interest right of Meiling Package respectively for the assets and liabilities which were not
including in the property transfer range due to the 48.28% equity owned by the Company before the Meiling
Group purchased. In according to the resolution of 46th Meeting of 6th Session of the Board, Meiling Package
consented for separation by way of derivation. Separated partial assets and liabilities of Meiling Package,
out-of-the-range property transfer previously on base date of separation dated 31 December 2010. Derivates a
new-establishment company and 51.72% equity of the new company that out-of-the-range transfer to Xingtai
Assets for share.
Before separation, Meiling Package owes register capital of 18.4 million yuan; as at the end of 31 December
2010, Meiling Package assets totaling to 157,232,600 yuan, total liability amounting to 105,497,500 yuan and
net assets amounting to 51,735,200 yuan. Basic information of two companies after Meiling Package
separation:
1. Residual company
Register capital: 17.4 million yuan, total assets: 126,342,085.19 yuan, total liabilities 99,579,538.35 yuan and
net assets: 26,762,546.84 yuan. Equity proportion and legal representative has no change.
2. Derivative new-established company
Register capital: one million yuan, total assets: 30,890,557.26 yuan, total liabilities 5,917,918.34 yuan and net
assets: 24,972,638.92 yuan. Assets of the company mainly refer to land and properties.
Currently, the derivative new-established company – Hefei Xingmei Assets Management Co., Ltd. has finished
the procedures of changes on Industrial & Commercial Registration. In according to the reply of assets transfer
freely from SASAC of Hefei City and two parties’ negotiation follow-up, the 51.72% equity of Hefei Xingmei
Assets Management Co., Ltd.—derivative new-established company will share by Xingtai Assets for free from
Meiling Group.
The abovementioned event has been published on Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website as notice( No.: 2011-028 and No.: 2011-031) dated May 28, 2011.
(II) Particular about the investment on Jiangxi Meiling Electric Appliance Limited Liability Co.,
Found details in “Investment on Jiangxi Meiling Electric Appliance Limited Liability Co.,” of item two
contained in (I), Part “III” of Section V.
41
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(III) Particular about the moving and capacity enlargement project for Jiangxi Meiling Electric Appliance
Limited Liability Co.,--subsidiary of the Company
Found details in “Moving and Capacity Enlargement Project for Jiangxi Meiling Electric Appliance Limited
Liability Co.,” of item three contained in (I), Part “III” of Section V.
(IV) Particular about the investment project of Pakistan of Zhongshan Changhong Electric Appliance Co., Ltd.
– subsidiary of the Company
Found details in “Particular about the investment project of Pakistan of Zhongshan Changhong Electric
Appliance Co., Ltd. – subsidiary of the Company” of item four contained in (I), Part “III” of Section V.
(V) Particular about newly designated newspapers for information disclosure
In order to enlarge the coverage of information disclosure of the Company and perfected the investment
relationship management, the Company designated China Securities Journal as the information disclosure
newspaper. The disclosure media for information of the Company were Securities Times, China Securities
Journal Hong Kong Commercial Daily and Juchao Website since 26 January 2011.
The abovementioned event has been published on Securities Times, Hong Kong Commercial Daily and Juchao
Website as notice (No.: 2011-008) dated January 26, 2011.
(VI) Relevant particular about the accomplishment on capital increased to Mianyang Meiling Cooling Limited
Liability Co., -- subsidiary of the Company
Found details in “Relevant particular about the accomplishment of capital increased to Mianyang Meiling
Cooling Limited Liability Co.,-- subsidiary of the Company” of item one contained in (I), Part “III” of Section
V.
(VII) Item of changes of the sponsor deputy for Equity Division Reform
In March of 2011, the Company received a Letter of Changes of Sponsor Deputy from China Merchants
Securities Co., Ltd.—the sponsor institution for equity division reform of the Company. The original sponsor
deputy who in charge of the sponsor and supervise work of the Company Zhen Huafeng has resigned. For
better performing the supervise responsibility from sponsor institution, China Merchants Securities Co., Ltd.
designated sponsor deputy Zhang Xiaobin for replacement of Zhen Huafeng, implementing the duty of
supervise on the equity division reform for the Company.
The abovementioned event has been published on Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website as notice( No.: 2011-016) dated March 22, 2011.
VIII. Commitments
(I) Commitments for Share Merge Reform
The Company implemented the Share Merge Reform on 24 August 2007, that is, the Company took the
151,530,340 current shares before the Reform and arranged 1.5 shares per 10 shares by valuable consideration
for all current A-share holders registered before the registered date of scheme implementation. Upon
completion of the valuable consideration, the shareholding of Meiling Electric Appliance non-current share
holders got the right to come into the market.
As at end of the Period, the original non-current shareholders all have strictly fulfilled commitments in the
moratorium and other relevant commitment.
42
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(II) Commitments for transfer of air conditioner asset
On 10 December 2009, the Company entered into the Property Transaction Contract with Sichuan Changhong
and Sichuan Changhong Innovation Investment Co., Ltd. (“Changhong Chuangtou”) in Mianyang City
concerning the successful bidding for shareholding in Zhongshan Changhong and Changhong Air Conditioner;
at the same day, the Company received the Commitment Letter presented by the large shareholder—Sichuan
Changhong. For purpose of Meiling Electric Appliance’s development, its independence and withdrawal from
the intertype competition between the Sichaun Changhong and the Company, Sichuan Changhong committed
that:
1. Concerning property and land in use by Changhong Air Conditioner were not in the assets scope of the
transfer, Sichaun Changhong committed that it would continue leasing to Changhong Air Conditioner at
market price and negotiate with Meiling Electric Appliance about the transfer of partial property and land
according to Changhong Air Conditioner’s operation.
2. Upon the transfer, Sichuan Changhong committed that it would make efforts to withdraw from new related
transaction with Meiling Electric Appliance; however, as for the inevitable ones, it committed that it would set
price of related transaction in market manner to make sure the transaction fair, just and with no harm to
Meiling’s interest.
3. For support of development of Meiling Electric Appliance and air conditioner, and upon the transfer,
Sichuan Changhong committed that it would continue authorizing free use of trademark--‘Changhong’ in the
coming three years to Changhong Air Conditioner and Zhongshan Changhong. As the above authority due,
Sichuan Changhong would negotiate with Meiling Apparatus about the authorized use of
patent“Changhong”according to Meiling Electric Appliance’s air conditioner development.
4. Upon the transfer, Sichuan Changhong committed that it would not enter into operation business or activities
that competed or conflicted with Meiling Electric Appliance’s current or future business, as air conditioner or
refrigerator.
Till end of the report period, relevant commitments have been implemented strictly.
(III) Commitments for Reduction of and Withdrawal from Intertype Competition
Concerning the Company’s private A-share of 2010, according to relevant regulations, the Commitment Letter
of reduction of and withdrawal from intertype competition with Hefei Meiling Co., Ltd. was presented by
Sichuan Changhong with committed and guaranteed that:
1. In addition to assistance activities required by Meiling Apparatus for its interest, Sichuan Changhong would
not take initiative in business and activities competing or conflicting with Meiling Electric Appliance’s.
2. The Company guaranteed that it would use the shareholders’ right legally and reasonable without take any
activities restricting or influencing Meiling Electric Appliance’s normal operational.
3. If Meiling Electric Appliance expanded its business scope further while the Company had already operated
the new business, the Company agreed to authorize Meiling Electric Appliance the relevant preferential
acquisition right only that the Company was still the controlling shareholder or actual controller.
Till end of the report period, relevant commitments have been implemented strictly.
43
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(IV) Sichuan Changhong’s Commitment Letter of Reduction and Standardization of Related
Transaction with the Company
Concerning the Company’s private A-share of 2010, according to relevant regulations, the Commitment Letter
of reduction of and withdrawal from intertype competition with Hefei Meiling Co., Ltd. was presented by
Sichuan Changhong with committed and guaranteed that:
1. It would take measures to make efforts to avoid continual related transaction with Meiling Electric
Appliance, and as for the inevitable ones, signed the related connection contract legally and set the just price
respectively according to the marketization principle—equity and mutual benefit, making compensation for
equal value, and current market standard.
2. It would fulfill duties as necessary withdrawal of related directors and shareholders from the vote and
obedience to legal procedures of related transactions and duties of information disclosure.
3. It guaranteed that it would not harm the legal interests of Meiling Electric Appliance and other shareholders
of Meiling.
Till end of the report period, relevant commitments have been implemented strictly.
(V) Commitment of long-term leasing of land and houses to Mianyang Meiling from Changhong
Minsheng Logistics Limited Liability Co., -- Subsidiary of Sichuan Changhong
For further support of the rapidly development of Mianyang Meiling, ensured that the assets’ integrity of
Mianyang Meiling and the stability of land and houses used for construction from 2010 private issuance. Due to
the land certificate of plants that leased by Mianyang Meiling from Sichuan Changhong Minsheng Logistics
Limited Liability Co., (“Minsheng Logistics”) still in process, Minsheng Logistics committed that: After the
accomplishment of house property certificate, the Company will transfer land use right and housing property
right to Mianyang Meiling as soon as possible according to relevant laws and regulations, and help them to
handle relevant procedures if necessary.
(VI) Commitment from Sichuan Changhong on long-term leasing of land and houses to Mianyang
Meiling from Changhong Minsheng Logistics Limited Liability Co.,-- Subsidiary of Sichuan Changhong
For further support of the rapidly development of Mianyang Meiling, ensured that the assets’ integrity of
Mianyang Meiling and the stability of land and houses used for construction from 2010 private issuance. Due to
the land certificate of plants that leased by Mianyang Meiling from Minsheng Logistics still in process, Sichuan
Changhong committed that: After the accomplishment of house property certificate, the Company will
supervise and urge Minsheng Logistics to transfer partial land use right and housing property right to Mianyang
Meiling as soon as possible according to relevant laws and regulations.
(VII) Commitment from Sichuan Changhong on related transaction reduction with the Company in
aspect of houses releasing
Due to the house property certificate of plants that rented by Changhong Air Conditioner still in process, for
further support of the rapidly development of Changhong Air Conditioner, ensured that the assets’ integrity of
Changhong Air Conditioner and the stability of operation, reducing the related transaction with the Company in
aspect of house leasing, Sichuan Changhong committed that: After the accomplishment of house property
certificate, the Company will transfer land use right and housing property right to Changhong Air Conditioner
44
Hefei Meiling Co., Ltd. Semi-annual Report 2011
as soon as possible according to relevant laws and regulations, and help them to handle relevant procedures if
necessary.
(VIII) Transfer of State-owned Property in Meiling Group
As the Company (B Party or Transferee) signed decimal the Property Transfer Contract with Hefei Xingtai
Holding Group Co., Ltd. (“Xingtai Holding”) on 25th March 2010, the Company transferred under the
agreement the 100% state-owned property in Meiling Group which is partially striped and indebted, held by
Xingtai Holding, (including“Meiling”trademark, business name, together with 8 wholly-owned or controlling
subsidiaries, excluding 1.2% stock property of Meiling Group in the Company). Commitments relevant to the
Company were as follows:
1. There was no change in the legal subject position of the transferring enterprise. The new transferee entity
would not move out from the Hefei City within the legal duration and continue enter into apparatus and its
related industry. The new transferee entity would pay tax no less than 15 million yuan—sum of the last year
within 5 years paid by Meiling Group in Hefei City.
2. Within 5 years from the effectual day of the contract, investment newly increased in Hefei City is no less
than 100 million yuan.
3. Within 5 years from the signing, B Party, besides the internal transfer, would not transfer the bid.
4. Meiling Group transferred to Hefei Xingtai Asset Management Co., Ltd. the credit in total of 48.69 million
yuan under the transfer scope held by the subsidiary (the actual sum is the one in the audited report as ending
25th March 2010) with the new transferee entity paying off in 2 years from the signing day (a legal valid
contract is necessary).
5. The transferee offered the post in proportion to 80% of the now on-the-job number in the transferring
enterprise and subsidiary in the transfer. Under the same condition, the existing staff and management had the
privileges to be hired and arranged. As day of the displacement is the continuing day of labor relations, it
signed the labor contract of no less than 3 years with hired people within one month from the effecting day. It
continued and handled all social insurances and paid for the housing reserve according to relevant rules of
Hefei City.
6. The transferee inherited all assets and liabilities evaluated and confirmed, of the transferring enterprise.
7. The transferee continued fulfilling the agreement signed with the external parties by the transferring
enterprise.
8. The transferee continued cooperating with the A Party to complete the strip-off of the nontransferable equity
in the transferring enterprise.
9. The transferee had to make rational utilization of land in the transfer without claim to change in land usage.
10. The transferee did not dilute or weaken the trademark and business name“Meiling”, maintain them
properly and committed that Meiling production amount in Hefei was no less than 70% of the total, increase of
45
Hefei Meiling Co., Ltd. Semi-annual Report 2011
sales amount no less than 20%, fee for its product research and development and trademark maintenance no
less than 1% of the sales sum.
Till end of the report period, relevant commitments have been implemented strictly.
(IX) Commitment on temporary supplementation of circulating capital from partial idle raising fund
For purpose of maximized the usage of raising fund, reduced the financial expenses, lower the operational cost
and under the premise of ensure the capital requirement for investment project, the Proposal of temporary
supplementation of circulating capital from partial idle raising fund has been deliberated and approved by 47th
Meeting of 6th Session of the Board, 16th Meeting of 6th Session of Supervisors and 2nd Extraordinary
Shareholders’ General Meeting 2010 dated 7 June 2011 and 23 June 2011. Partial raising fund was consented
for temporary supplementation for circulating capital, amount of 500 million yuan within 6 months since the
date of approval day from Shareholders’ General Meeting, which is from 23 June 2011 to 23 December 2011.
Furthermore, use and manage the capital by regulations and return the capital on time to specific raising fund
account. The Company made commitments by relevant regulations as:
1. the partial idle raising fund used for circulating capital supplementation only limited in the manufacture and
business of main operation;
2. After the maturity of the account, the capital should return back to specific raising fund account on time;
3. If the construction project repaid up the usage of raising fund, the Company should return the capital to
specific account correspondingly. No influence on the normal operation of capital on investment projects and
change no usage way of the raising fund in disguised form;
4. Within 12 months after the circulating capital supplementation, the Company committed no securities
investment or risk investment with no more than 10 million yuan conducted; no transaction directly or
indirectly on new shares placing, purchasing or stocks and its derivative products and convertible corporate
bonds. No capital orientation changes in disguised form and do harmless to shareholders’ interest of the
Company.
Till end of the report period, relevant commitments have been implemented strictly.
IX. General situation of Company’s Capital appropriation by controlling shareholders and subsidiaries
and independent opinions by independent directors on Listed Company’s capital appropriation by
controlling shareholders and other related parties, and Company’s external guarantee
(I) There was no appropriation of the Company’s capital by the largest shareholder, actual controllers
and its subsidiaries.
(II) Pursuant to the requirements Notice of Standardization on Capital Dealings with Related Party
and External Guarantee of Listed Company (CSRC No.56 [2003]) released by CSRC and SASAC. As
ending in the Period, there was no guarantee of the Company for the related party or previous guarantee
continuing into the Period.
(III) Specific explanation and independent opinion of independent directors on Company’s Capital
appropriation by controlling shareholders and other related party
Pursuant to the requirements Notice of Regulation on Capital Dealings with Related Party and External
Guarantee of Listed Company (CSRC No.56 [2003]) released by CSRC and External Guarantee of Listed
Company and Notice of Standardization on External Guarantee (CSRC No.120 [2005])(hereafter referred as
46
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Announcements), as the independent directors of Hefei Meiling Co., Ltd. (“The Company ” or “Company”),
we carefully checked the particular about fund occupation by controlling shareholder and other related parties
and external guarantee occurred in first half of 2011 with the attitude of being rigorous, practical and realistic,
and serious and responsible, we made explanations and independent opinions on the checking.
In the report period, the external guarantee from the Company and its subordinate enterprise provided
maximum guarantee of 183 million yuan with actual guarantee amount of 37.8769 million yuan. This
guarantee occupied 1.39% of the net assets of the Company audited 31 December 2010, the actually amount
offer to Sichuan Changhong Air-conditioner Co., Ltd., wholly-owned subsidiary of the Company. Among
which, maximum guarantees offer to subordinate wholly-owned enterprise and controlling subsidiaries of the
Company amounting to 167 million yuan with actual guarantee of 37.8769 million yuan; guarantee from
subsidiary- Hefei Meiling Group Holding Co., Ltd.(“Meiling Group”) to its subordinate enterprise were
formed historically before 100% equity of Meiling Group transfer by agreement from the Company. As at end
of 30 June of 2011, the subsidiaries of Meiling Group obtained totaling guarantee ceiling of 16 million yuan
from Meiling Group with actually amount of 0 yuan in guarantee. Controlling subsidiary of the Company offer
0 yuan as guarantee for its stock jointly subsidiaries; the Company and its controlling subsidiaries owes no
overdue guarantee externally. The abovementioned guarantee objects refers to the wholly-owned company or
controlling subsidiary of the Company which shows normal operational business without overdue payment
occurred and have the guarantee risk in control.
As the end of 30 June 2011, there was no listed company’s capital appropriation for non-operation by the
controlling shareholders or related party. In the Period, even though there was listed company’s capital
appropriation for non-operation by the controlling shareholders or related party, the Company did not provide
direct or indirect capital for their use.
We believe that the Company executed the following strictly complying with regulations and requirements in
the Announcements, standardization on the capital dealings between the Company and its controlling
shareholders or related party, and external guarantee which was up to the regulatory requirements and
regulation, fulfilled the relevant approval procedures without illegal external guarantees, strict control and
prevention on the business risk to protect the interest of stock public and the Company. In the period, all
external guarantees were for the production and business, and rational capital utilization of the Company and
its subsidiaries, and the guarantee procedures were legal and rational without harm to the interests of the
Company and shareholders, especially the mid-small ones.
Independent directors: Wang Xingzhong, Song Baozeng, Liu Youpeng and Zhang Shidi
X. In the report period, the Company, the directors, the supervisors, senior executives, shareholder of
the Company, actual controller, and purchaser haven’t received investigation from the authorized
department, forceful measure from justice and inspection department, sent to justice organization or
criminal responsibility, inspection and administrative penalty from CSRC, or received no access to
securities market, administrative penalty from other administration department if being recognized as
inappropriate people or public criticize by Shenzhen Stock Exchange.
XI. Registration form for receiving research, communication and interview in the report period
The received Contents discussed and
Date Place Way
parties materials supplied
Conference
Spot Donghai Operation status of the
2011-01-06 Room of the
investigation Securities Company
Company
2011-01-25 Conference Spot Sinolink Operation status of the
47
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Room of the investigation Securities Company
Company
Changjiang
Securities,
CITIC-Prudential
Fund
Management Co.,
Ltd., Everbright
Securities,
eCITIC
Conference Securities ,
Spot Operation status of the
2011-03-23 Room of the Haitong
investigation Company
Company Securities,
Fullgoal Fund,
Hua An Fund,
Guolian
Securities, Bank
of
Communication
Schroders Fund
Co.,
Conference GUOTAI JUNAN
Spot Operation status of the
2011-03-31 Room of the Securities Co.,
investigation Company
Company Ltd.
Donghai
Conference
Spot Securities Co., Operation status of the
2011-05-26 Room of the
investigation Ltd., Minsheng Company
Company
Securities
Conference Donghai
Spot Operation status of the
2011-06-16 Room of the Securities Co.,
investigation Company
Company Ltd.
GUOTAI JUNAN
Securities Co.,
Conference
Spot Ltd., Donghai Operation status of the
2011-06-20 Room of the
investigation Securities Co., Company
Company
Ltd., Fullgoal
Fund
48
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Section VII. Financial Report
I. Financial Statement
(I) Consolidation and Balance Sheet of Parent Company
Prepared by Hefei Meiling Co., Ltd. 30 June 2011 Unit: RMB
Note Consolidated Parent company
Co Par
nso ent
Item Balance at Balance at Balance at Balance at
lid co
period-end year-begin period-end year-begin
ate mp
d any
Current assets:
Monetary funds 1 1,479,457,104.15 1,986,440,504.29 1,062,368,214.04 1,798,742,365.37
Settlement provisions - - - -
Capital lent - - - -
Transaction finance
- - - -
asset
Notes receivable 2 2,367,756,301.73 1,194,506,906.44 1,880,066,647.10 1,106,438,507.37
Accounts receivable 3 1 815,019,898.50 372,563,010.12 495,148,154.15 274,803,755.01
Accounts paid in
4 165,901,527.14 187,026,777.59 202,044,553.03 251,170,398.45
advance
Insurance receivable - - - -
Reinsurance
- - - -
receivables
Contract reserve of
- - - -
reinsurance receivable
Interest receivable - - - -
Dividend receivable - - - -
Other receivables 5 2 69,265,567.62 61,420,720.54 46,714,855.94 15,116,164.77
Purchase restituted
- -
finance asset
Inventories 6 1,709,478,636.22 1,583,313,401.08 1,051,865,378.85 1,024,929,999.07
Non-current asset due
- -
within one year
Other current assets - -
Total current assets 6,606,879,035.36 5,385,271,320.06 4,738,207,803.11 4,471,201,190.04
Non-current assets:
Granted loans and
- - - -
advances
Finance asset available
- - - -
for sales
Held-to-maturity
- - - -
securities
Long-term account
- - - -
receivable
49
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Long-term equity
7 3 26,606,580.63 17,918,060.59 772,404,877.75 714,774,269.88
investment
Investment real estate 8 17,750,866.18 18,124,247.39 13,938,545.06 14,172,470.67
Fixed assets: 9 912,836,219.22 865,234,132.54 658,494,853.43 561,795,751.21
Construction in
10 68,623,258.79 75,179,300.94 64,211,869.40 77,177,425.21
progress
Engineering material - - - -
Disposal of fixed asset - - - -
Productive biological
- - - -
asset
Oil and gas asset - - - -
Intangible assets 11 616,599,682.36 681,869,906.34 513,274,499.17 525,520,272.58
Expense on Research
12 23,632,784.84 13,505,659.94 - -
and Development
Goodwill 13 10,922,803.73 10,922,803.73 - -
Long-term expenses to
- - - -
be apportioned
Deferred income tax
14 74,151,369.83 48,138,723.05 65,306,420.65 46,318,389.98
asset
Other non-current
- - - -
asset
Total non-current asset 1,751,123,565.58 1,730,892,834.52 2,087,631,065.46 1,939,758,579.53
Total assets 8,358,002,600.94 7,116,164,154.58 6,825,838,868.57 6,410,959,769.57
Current liabilities:
Short-term loans 16 197,953,361.30 238,923,801.11 170,000,000.00 218,860,000.00
Loan from central
- - - -
bank
Absorbing deposit and
- - - -
interbank deposit
Capital borrowed - - - -
Transaction financial
- - - -
liabilities
Notes payable 17 1,316,664,851.84 920,676,239.36 862,765,000.00 667,338,655.00
Accounts payable 18 1,961,393,556.89 1,421,456,784.36 1,336,674,911.96 1,069,993,584.69
Accounts received in
19 625,567,258.99 922,047,156.39 478,527,213.87 847,540,346.80
advance
Selling financial asset
- - - -
of repurchase
Commission charge
- - - -
and commission payable
Wage payable 20 70,436,457.58 97,284,277.48 56,836,044.64 82,061,354.59
Taxes payable 21 194,319,767.37 78,967,865.01 174,189,397.63 91,232,638.87
Interest payable - - - -
Dividend payable 22 738,695.30 738,695.30 738,695.30 738,695.30
50
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Other accounts
23 722,592,518.31 410,610,813.51 545,180,180.66 425,475,184.84
payable
Reinsurance payables - - - -
Insurance contract
- - - -
reserve
Security trading of
- - - -
agency
Security sales of
- - - -
agency
Non-current liability
24 2,146,691.72 1,189,452.90 2,135,580.56 1,145,008.44
due within one year
Other current liabilities - - - -
Total current liabilities 5,091,813,159.30 4,091,895,085.42 3,627,047,024.62 3,404,385,468.53
Non-current liabilities:
Long-term loans 25 12,705,500.00 14,506,060.00 12,705,500.00 14,296,400.00
Bonds payable - - - -
Long-term account
- - - -
payable
Special accounts
26 49,654,111.76 33,214,132.26 33,093,588.26 33,214,132.26
payable
Projected liabilities 27 271,075,573.00 203,421,595.00 271,075,573.00 203,421,595.00
Deferred income tax
14 - - - -
liabilities
Other non-current
28 26,425,893.61 26,937,022.85 26,425,893.61 26,937,022.85
liabilities
Total non-current liabilities 359,861,078.37 278,078,810.11 343,300,554.87 277,869,150.11
Total liabilities 5,451,674,237.67 4,369,973,895.53 3,970,347,579.49 3,682,254,618.64
shareholders’ equity:
Share capital 29 530,374,449.00 530,374,449.00 530,374,449.00 530,374,449.00
Capital public reserve 30 1,610,571,447.17 1,610,571,447.17 1,625,421,425.24 1,625,421,425.24
Less: Inventory shares - - - -
Surplus public reserve 31 279,597,693.51 279,597,693.51 279,379,527.83 279,379,527.83
Provision of general
- - - -
risk
Retained profit 32 422,908,778.29 296,750,782.08 420,315,887.01 293,529,748.86
Balance difference of
- - - -
foreign currency translation
Total shareholders’ equity
attributable to parent 2,843,452,367.97 2,717,294,371.76 2,855,491,289.08 2,728,705,150.93
company
Minority interests 33 62,875,995.30 28,895,887.29 - -
Total shareholders’ equity 2,906,328,363.27 2,746,190,259.05 2,855,491,289.08 2,728,705,150.93
Total liabilities and
8,358,002,600.94 7,116,164,154.58 6,825,838,868.57 6,410,959,769.57
shareholders’ equity
51
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Legal representative: Zhao Yong
Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Liu Bimin
(II) Consolidation and Profit Statement of Parent Company
Prepared by Hefei Meiling Co., Ltd. January- June 2011 Unit: RMB
Note Consolidated Parent company
Par
Cons ent Amount at same
Items Amount in Amount at same Amount in this
olida co period of last
this period period of last year period
ted mp year
any
I. Total operating
5,475,018,688.64 4,575,759,806.96 4,206,483,990.92 3,744,656,537.81
income
Including: income
34 4 5,168,549,152.44 4,289,072,025.85 3,604,607,979.80 3,253,792,487.32
from main business
Other
306,469,536.20 286,687,781.11 601,876,011.12 490,864,050.49
business income
Interest income - - - -
Insurance
- - - -
gained
Commission charge
and commission - - - -
income
II. Total operating
5,453,286,578.02 4,548,403,958.07 4,055,919,778.25 3,660,096,413.17
cost
Including: cost of
34 4 4,019,061,177.42 3,201,834,567.45 2,716,145,527.69 2,262,294,849.69
main business
Other business
282,394,871.08 246,264,163.37 588,185,835.37 459,953,413.92
cost
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 - - - -
52
Hefei Meiling Co., Ltd. Semi-annual Report 2011
of guarantee slip
Reinsurance
- - - -
expense
Operating tax
35 19,453,852.82 18,442,086.28 17,493,568.32 17,305,600.13
and extras
Sales expenses 36 980,975,553.78 986,399,238.84 656,253,893.85 854,448,246.08
Administration
37 143,544,164.22 84,359,075.10 84,083,002.38 58,272,200.56
expenses
Financial
38 -15,240,641.58 -4,425,042.15 -18,725,111.31 -2,493,076.05
expenses
Losses of
39 23,097,600.28 15,529,869.18 12,483,061.95 10,315,178.84
devaluation of asset
Add: Changing
income of fair
- - - -
value(Loss is listed
with “-”)
Investment
income (Loss is 40 5 332,396.24 137,640,762.06 164,270.87 137,640,762.06
listed with “-”)
Including:
Investment income
on affiliated - -1,738,998.66 - -1,738,998.66
company and joint
venture
Exchange
income (Loss is - - - -
listed with “-”)
III. Operating profit
(Loss is listed with 22,064,506.86 164,996,610.95 150,728,483.54 222,200,886.70
“-”)
Add:
Non-operating 41 119,542,650.05 94,773,177.51 2,152,358.00 21,510,732.53
income
Less:
Non-operating 42 2,143,328.48 528,567.96 1,880,830.05 485,236.58
expense
Including:
Disposal loss of 1,884,529.38 513,620.69 1,877,046.10 485,236.58
non-current asset
IV. Total Profit
(Loss is listed with 139,463,828.43 259,241,220.50 151,000,011.49 243,226,382.65
“-”)
Less: Income
43 18,135,891.78 40,301,395.05 24,213,873.34 38,337,360.61
tax
V. Net profit (Net 121,327,936.65 218,939,825.45 126,786,138.15 204,889,022.04
53
Hefei Meiling Co., Ltd. Semi-annual Report 2011
loss is listed with
“-”)
Net profit
attributable to
126,157,996.21 218,616,696.38 126,786,138.15 204,889,022.04
owner’s equity of
parent company
Minority
shareholders’ gains -4,830,059.56 323,129.07 - -
and losses
VI. Earnings per
- -
share
i. Basic earnings per
44 0.2379 0.5285 0.2391 0.4953
share
ii. Diluted earnings
44 0.2379 0.5285 0.2391 0.4953
per share
VII. Other
45 - -105,451,137.74 - -105,451,137.74
consolidated income
VIII. Total
121,327,936.65 113,488,687.71 126,786,138.15 99,437,884.30
consolidated income
Total consolidated
income attributable
126,157,996.21 113,165,558.64 126,786,138.15 99,437,884.30
to shareholders of
parent company
Total consolidated
income attributable
-4,830,059.56 323,129.07 - -
to minority
shareholders
Legal representative: Zhao Yong
Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Liu Bimin
(III) Consolidation and Cash Flow of Parent Company
Prepared by Hefei Meiling Co., Ltd. January- June 2011 Unit:RMB
Consolidated Parent company
Amount Amount
Amount Amount
Items accumulated at accumulated at
accumulated this accumulated this
same period of same period of
year year
last year last year
I. Cash flows arising
from operating
activities:
Cash received from
selling commodities and 2,261,186,763.21 1,629,352,363.89 1,511,861,481.27 1,237,608,247.28
providing labor services
Net increase of - - - -
54
Hefei Meiling Co., Ltd. Semi-annual Report 2011
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
Insured savings and net
- - - -
increase of investment
Net increase of disposal
of transaction financial - - - -
asset
Cash received from
interest, commission - - - -
charge and commission
Net increase of
- - - -
capital borrowed
Net increase of
- - - -
returned business capital
Write-back of tax
25,730,915.85 6,229,079.97 6,106,556.57 3,147,453.85
received
Other cash received
concerning operating 154,847,635.85 76,594,890.57 4,563,090.33 7,169,995.00
activities
Subtotal of cash inflow
arising from operating 2,441,765,314.91 1,712,176,334.43 1,522,531,128.17 1,247,925,696.13
activities
Cash paid for
purchasing commodities
2,108,299,566.88 1,077,401,546.51 1,423,412,655.93 837,452,255.59
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
55
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Cash paid for interest,
commission charge and - - - -
commission
Cash paid for bonus of
- - - -
guarantee slip
Cash paid to/for staff
307,943,256.24 152,199,970.04 179,579,555.72 102,904,862.93
and workers
Taxes paid 156,316,882.18 144,078,717.64 134,642,332.56 131,106,069.75
Other cash paid
concerning operating 413,539,305.42 502,487,322.25 283,785,138.20 387,019,503.17
activities
Subtotal of cash
outflow arising from 2,986,099,010.72 1,876,167,556.44 2,021,419,682.41 1,458,482,691.44
operating activities
Net cash flows arising
-544,333,695.81 -163,991,222.01 -498,888,554.24 -210,556,995.31
from operating activities
II. Cash flows arising
from investing - - - -
activities:
Cash received from
1,000,000.00 6,929,464.41 1,000,000.00 6,929,464.41
recovering investment
Cash received from
1,533,663.00 139,379,760.72 1,533,663.00 139,379,760.72
investment income
Net cash received from
disposal of fixed,
71,162,183.34 57,596.00 1,162,183.34 34,196.00
intangible and other
long-term assets
Net cash received
from disposal of
- - - -
subsidiaries and other
units
Other cash received
concerning investing 7,880,762.49 7,139,285.65 9,051,682.90 5,888,249.15
activities
Subtotal of cash inflow
81,576,608.83 153,506,106.78 12,747,529.24 152,231,670.28
from investing activities
Cash paid for
purchasing fixed,
57,692,391.87 34,230,003.11 49,830,507.22 40,310,235.70
intangible and other
long-term assets
Cash paid for
-22,009,000.00 227,722,800.00 60,000,000.00 213,200,000.00
investment
Net increase of
- - - -
mortgaged loans
Net cash received 978,687.97 - - -
56
Hefei Meiling Co., Ltd. Semi-annual Report 2011
from subsidiaries and
other units
Other cash paid
concerning investing - - 37,000,000.00 -
activities
Subtotal of cash
outflow from investing 36,662,079.84 261,952,803.11 146,830,507.22 253,510,235.70
activities
Net cash flows arising
44,914,528.99 -108,446,696.33 -134,082,977.98 -101,278,565.42
from investing activities
III. Cash flows arising
- - - -
from financing activities
Cash received from
35,966,000.00 - - -
absorbing investment
Including: Cash
received from absorbing
minority shareholders’ - - - -
investment by
subsidiaries
Cash received from
145,961,241.63 238,590,000.00 120,000,000.00 238,590,000.00
loans
Cash received from
- - - -
issuing bonds
Other cash received
concerning financing - - 39,000,000.00 89,000,000.00
activities
Subtotal of cash inflow
181,927,241.63 238,590,000.00 159,000,000.00 327,590,000.00
from financing activities
Cash paid for
187,548,951.80 204,000,000.00 169,500,000.00 204,000,000.00
settling debts
Cash paid for
dividend and profit
5,594,190.83 4,554,164.55 4,203,617.65 4,472,264.55
distributing or interest
paying
Including:
Dividend and profit of
- - - -
minority shareholder
paid by subsidiaries
Other cash paid
concerning financing - - 91,999,750.20 11,500,000.00
activities
Subtotal of cash
outflow from financing 193,143,142.63 208,554,164.55 265,703,367.85 219,972,264.55
activities
Net cash flows -11,215,901.00 30,035,835.45 -106,703,367.85 107,617,735.45
57
Hefei Meiling Co., Ltd. Semi-annual Report 2011
arising from financing
activities
IV. Influence on cash
due to fluctuation in 3,651,667.68 -1,690,185.80 3,300,748.74 -2,105,700.17
exchange rate
V. Net increase of cash
-506,983,400.14 -244,092,268.69 -736,374,151.33 -206,323,525.45
and cash equivalents
Add: Balance of cash
and cash equivalents at 1,986,440,504.29 747,572,445.88 1,798,742,365.37 579,447,940.41
the period -begin
VI. Balance of cash and
cash equivalents at the 1,479,457,104.15 503,480,177.19 1,062,368,214.04 373,124,414.96
period -end
Legal representative: Zhao Yong
Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Liu Bimin
58
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(V) Consolidated Statement on Changes of Owners’ Equity
Prepared by Hefei Meiling Co., Ltd. June 30, 2011 Unit: RMB
Amount in this period
Owners’ equity attributable to the parent company
Gener
Items Less: Minority Total owners’
Capital Surpl al risk Retained
Share capital Treasur interests equity
reserves us reserves provis profit
y Stock
ion
I. Balance at the end
530,374,449.00 1,610,571,447.17 - 279,597,693.51 - 296,750,782.08 28,895,887.29 2,746,190,259.05
of the last year
Add: Changes of
-
accounting policy
Error correction of the
-
last period
II. Balance at the
530,374,449.00 1,610,571,447.17 - 279,597,693.51 - 296,750,782.08 28,895,887.29 2,746,190,259.05
beginning of this year
III. Increase/ Decrease
in this year (Decrease - - - - - 126,157,996.21 33,980,108.01 160,138,104.22
is listed with'"-")
(I) Net profit 126,157,996.21 -4,830,059.56 121,327,936.65
(II) Other
- - - - - - - -
consolidated income
Subtotal of (I) and (II) - - - - - 126,157,996.21 -4,830,059.56 121,327,936.65
(III) Owners' devoted
- - - - - - 38,810,167.57 38,810,167.57
and decreased capital
1. Owners' devoted
38,810,167.57 38,810,167.57
capital(Meiling’s
59
Hefei Meiling Co., Ltd. Semi-annual Report 2011
house property)
2. Amount calculated
into owners' equity -
paid in shares
3. Others -
(IV) Profit distribution - - - - - - - -
1. Withdrawal of
- - -
surplus reserves
2. Withdrawal of
- - -
general risk provisions
3.Distribution for
-
owners (shareholders)
4.Others -
(V) Carrying forward
- - - - - - - -
internal owners' equity
1.Capital reserves
conversed to capital -
(share capital)
2. Surplus reserves
conversed to capital -
(share capital)
3.Remedying loss
-
with profit surplus
4.Others -
IV. Balance at the end
530,374,449.00 1,610,571,447.17 - 279,597,693.51 - 422,908,778.29 62,875,995.30 2,906,328,363.27
of this year
Legal representative: Zhao Yong
Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Liu Bimin
60
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(VI) Consolidated Statement on Changes of Owners’ Equity (Con’t)
Prepared by Hefei Meiling Co., Ltd. June 30, 2011 Unit: RMB
Amount in last year
Owners’ equity attributable to the parent company
Items Less: General Minority Total owners’
Capital Surplus
Share capital Treasury risk Retained profit interests equity
reserves reserves
Stock provision
I. Balance at the end
530,374,449.00 1,610,571,447.17 - 279,597,693.51 - 296,750,782.08 28,895,887.29 2,746,190,259.05
of the last year
Add: Changes of
-
accounting policy
Error correction of the
-
last period
II. Balance at the
530,374,449.00 1,610,571,447.17 - 279,597,693.51 - 296,750,782.08 28,895,887.29 2,746,190,259.05
beginning of this year
III. Increase/ Decrease
in this year (Decrease - - - - - 126,157,996.21 33,980,108.01 160,138,104.22
is listed with'"-")
(I) Net profit 126,157,996.21 -4,830,059.56 121,327,936.65
(II) Other
- - - - - - - -
consolidated income
Subtotal of (I) and (II) - - - - - 126,157,996.21 -4,830,059.56 121,327,936.65
(III) Owners' devoted
- - - - - - 38,810,167.57 38,810,167.57
and decreased capital
1. Owners' devoted
capital(Meiling’s 38,810,167.57 38,810,167.57
house property)
2. Amount calculated
-
into owners' equity
61
Hefei Meiling Co., Ltd. Semi-annual Report 2011
paid in shares
3. Others -
(IV) Profit distribution - - - - - - - -
1. Withdrawal of
- - -
surplus reserves
2. Withdrawal of
- - -
general risk provisions
3.Distribution for
-
owners (shareholders)
4.Others -
(V) Carrying forward
- - - - - - - -
internal owners' equity
1.Capital reserves
conversed to capital -
(share capital)
2. Surplus reserves
conversed to capital -
(share capital)
3.Remedying loss
-
with profit surplus
4.Others -
IV. Balance at the end
530,374,449.00 1,610,571,447.17 - 279,597,693.51 - 422,908,778.29 62,875,995.30 2,906,328,363.27
of this year
Legal representative: Zhao Yong
Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Liu Bimin
62
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(VII) Statement on Changes of Owners’ Equity of Parent Company
Prepared by Hefei Meiling Co., Ltd. 30 June 2011 Unit: RMB
Amount in this year
Owners’ equity attributable to the parent company
Items
Capital Less: Treasury Surplus General risk Total owners’
Share capital Retained profit
reserves Stock reserves provision equity
I. Balance at the end of the last year 530,374,449.00 1,625,421,425.24 - 279,379,527.83 - 293,529,748.86 2,728,705,150.93
Add: Changes of accounting policy -
Error correction of the last period -
Others
II. Balance at the beginning of this year 530,374,449.00 1,625,421,425.24 - 279,379,527.83 - 293,529,748.86 2,728,705,150.93
III. Increase/ Decrease in this year
- - - - - 126,786,138.15 126,786,138.15
(Decrease is listed with'"-")
(I) Net profit - - 126,786,138.15 126,786,138.15
(II) Other consolidated income - - - - - - -
Total of (I) and (II) - - - - - 126,786,138.15 126,786,138.15
(III) Owners' devoted and decreased capital - - - - - - -
1. Owners' devoted capital -
2. Amount calculated into owners' equity
-
paid in shares
3. Others -
(IV) Profit distribution - - - - - - -
1. Withdrawal of surplus reserves - -
2. Withdrawal of general risk provisions - -
3.Distribution for shareholders -
4.Others - -
(V) Carrying forward internal owners'
- - - - - - -
equity
63
Hefei Meiling Co., Ltd. Semi-annual Report 2011
1.Capital reserves conversed to capital
-
(share capital)
2. Surplus reserves conversed to capital
-
(share capital)
3.Remedying loss with profit surplus -
4.Others -
IV. Balance at the end of this year 530,374,449.00 1,625,421,425.24 - 279,379,527.83 - 420,315,887.01 2,855,491,289.08
Legal representative: Zhao Yong
Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Liu Bimin
(VIII) Statement on Changes of Owners’ Equity of Parent Company(Con’t)
Prepared by Hefei Meiling Co., Ltd. 30 June 2011 Unit: RMB
Amount in last year
Owners’ equity attributable to the parent company
Items Surp General
Capital Less: Treasury Total owners’
Share capital lus risk Retained profit
reserves Stock equity
reserves provision
I. Balance at the end of the last year 413,642,949.00 672,197,136.09 - 284,889,548.51 - -38,211,546.96 1,332,518,086.64
Add: Changes of accounting policy -
Error correction of the last period -
Others -783,987.67 -783,987.67
II. Balance at the beginning of this year 413,642,949.00 672,197,136.09 - 284,889,548.51 - -38,995,534.63 1,331,734,098.97
III. Increase/ Decrease in this year
116,731,500.00 953,224,289.15 - -5,510,020.68 - 332,525,283.49 1,396,971,051.96
(Decrease is listed with'"-")
(I) Net profit 327,015,262.81 327,015,262.81
64
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(II) Other consolidated income - -107,881,799.35 - - - - -107,881,799.35
Total of (I) and (II) - -107,881,799.35 - - - 327,015,262.81 219,133,463.46
(III) Owners' devoted and decreased capital 116,731,500.00 1,061,106,088.50 - - - - 1,177,837,588.50
1. Owners' devoted capital 116,731,500.00 1,061,106,088.50 1,177,837,588.50
2. Amount calculated into owners' equity
-
paid in shares
3. Others -
(IV) Profit distribution - - - 32,701,526.28 - -32,701,526.28 -
1. Withdrawal of surplus reserves 32,701,526.28 -32,701,526.28 -
2. Withdrawal of general risk provisions - -
3.Distribution for shareholders - -
4.Others - -
(V) Carrying forward internal owners'
- - - -38,211,546.96 - 38,211,546.96 -
equity
1.Capital reserves conversed to capital
-
(share capital)
2. Surplus reserves conversed to capital
-
(share capital)
3.Remedying loss with profit surplus -38,211,546.96 38,211,546.96 -
4.Others -
IV. Balance at the end of this year 530,374,449.00 1,625,421,425.24 - 279,379,527.83 - 293,529,748.86 2,728,705,150.93
Legal representative: Zhao Yong
Person in Charge of Accounting Works: Yu Wanchun
Person in Charge of Accounting Institution: Liu Bimin
65
Hefei Meiling Co., Ltd. Semi-annual Report 2011
I. Basic information of the Company
1. Company Profile
Hefei Meiling Co., Ltd (hereinafter referred to as “the company”) is an incorporated
company established and reorganized by Hefei Meiling Refrigerator General Factory and
approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993, through Anhui
Provincial Government [Wanzhenmin (1993) No.166] and reexamination of China Securities
Regulatory Commission, the company made first public issue for 30 million A shares and the
company was listed on Oct. 18th, 1993 in Shenzhen Stock Exchange. On August 13th, 1996,
the company was approved to issue 100 million B shares to investors abroad through
[ZhengWeiFa(1996) No.26] issued by China Securities Regulatory Commission. The
company went public in Shenzhen Stock Exchange on August 28th, 1996.
On May 18, 2006, Hefei Meiling Group Holdings Company Limited (“original Meiling
Group”) signed Ownership of Meiling Electric Co., Ltd. Transfer Agreement respectively
with Sichuan Changhong Electric Co. Ltd (“Sichuan Changhong”) and Sichuan Changhong
Electronic Group Co., Ltd (“Changhong Group”), original Meiling Group transferred its
holding 37,852,683 shares in 82,852,683 state-owned shares of the Company to Changhong
Group, other 45,000,000 shares to Sichuan Changhong. On March 27, 2007, State-owned
Assets Supervision & Administration Commission of the State Council approved such
transfers with Document Guozi Chanquan No.253 in 2007 Reply on Matters of Hefei
Meiling Group Holdings Company Limited Transferring Partial State-owned Ownership. On
Aug 15, 2007, the above ownerships were transferred in Shenzhen Branch of China
Securities Journal Depository and Cleaning Corporation Limited. After these ownerships
transferred, Sichuan Changhong holds Meiling Group’s 45,000,000 shares (sponsor state
shares), or 10.88% of total shares of the Company, is the Company’s first largest shareholder;
Meiling Group holds Meiling Group’s 40,543,692 shares (sponsor state shares), or 9.80% of
total shares of the Company, is the Company’s second largest shareholder; Changhong
Group holds Meiling Group’s 37,852,683 shares (sponsor state corporate shares), or 9.15%
of total shares of the Company, is the Company’s third largest shareholder. On May 18, 2006,
Changhong Group issued Promise Letter, Changhong Group promises that the Company’s
these shares will be consigned to be managed by Sichuan Changhong, and Sichuan
Changhong will begin to exercise voting right of these shares since such voting right
obtained. The promise period is from the signature of Promise Letter to the date any
document in written re-issued by Changhong Group on such matter.
On July 31, 2007, State-owned Assets Supervision & Administration Commission of Anhui
Provincial Government replied with Document Wan Guozi Chanquan Han No.309 in 2007
Reply on Related Matters of Share Merger Reformof Meiling Co., Ltd., agreed the
Company’s ownership split reform plan. After ownership split reform completed, the total
shares are still 413,642,949, including: 38,135,951 shares held by Sichuan Changhong, a
9.22% of total shares; 34,359,384 state shares held by original Meiling Group, a 8.31% of
total shares; 32,078,846 state-owned legal person’s shares held by Changhong Group, a
7.76% of total shares; agreed that original Meiling Group made prepayment for other
non-tradable share holders who fails to exercise stock reform consideration, and when any
such non-tradable shares shareholder circulates its non-tradable shares, it must return the
prepayment made by Meiling Group, or approved by Meiling Group in advance. On Aug. 27,
2007, according to Share Merger Reform plan approved by Shareholders’ Meeting related to
Share Merger Reformheld on Aug 6, 2007, the Company made consideration that
non-tradable share holders deliver 1.5 share to A share holders per 10 shares, and original
Meiling Group made prepayment 3,360,329 shares for some non-tradable share holders as
66
Hefei Meiling Co., Ltd. Semi-annual Report 2011
consideration, and as registered in Shenzhen Branch of China Securities Depository and
Cleaning Corporation Limited after Share Merger Reform plan implemented, the structure of
Company’s shareholders is following:
Before Share Merger After Share Merger
Reform Reform
Share nature or holding
Note
enterprise
Proport Propor
Shares Shares
ion % tion %
Conditional
1. Non-tradable shares 149,012,606 36.02 126,283,055 30.53 tradable
shares
(1) Sichuan Changhong
45,000,000 10.88 38,135,951 9.22 State shares
Electric Co., Ltd.
(2) Heifei Meiling (Group)
40,543,692 9.80 30,999,055 7.49 State shares
Holding Co., Ltd.
State-owned
(3) Sichuan Changhong
37,852,683 9.15 32,078,846 7.76 corporate
Electric Group Co., Ltd.
shares
(4) Other corporate 25,616,231 6.19 25,069,203 6.06
Uncondition
2. Tradable shares 264,630,343 63.98 287,359,894 69.47 al tradable
shares
(1) Domestically listed RMB
151,530,343 36.63 174,259,894 42.13 A-share
common shares
(2) Domestically listed Foreign
113,100,000 27.34 113,100,000 27.34 B- share
shares
Subtotal of shares 413,642,949 100.00 413,642,949 100.00
After approved by State-owned Assets Supervision & Administration Commission of Anhui
Provincial Government replied with Document WGZCQHan(2007) No.309 original Meiling
Group made prepayment 3,360,329 shares as consideration for some non-tradable
shareholders, and after the situations of the Company’s structure of conditional tradable
shares after consideration not prepaid and actually prepaid in Share Merger Reform as
followings:
After consideration After consideration
actually prepaid in
Shareholders of conditional not prepaid in Share Difference
Share Merger
tradable shares Reform
Merger Reform
Shares Propor Shares Propo Shares Prop
67
Hefei Meiling Co., Ltd. Semi-annual Report 2011
tion rtion ortio
(%) (%) n
(%)
Sichuan Changhong Electric
38,135,951 9.22 38,135,951 9.22 - -
Co., Ltd.
Heifei Meiling (Group)
34,359,384 8.31 30,999,055 7.49 -3,360,329.00 -0.81%
Holding Co., Ltd.
Sichuan Changhong Electric
32,078,846 7.76 32,078,846 7.76 - -
Group Co., Ltd.
Other corporate 21,708,874 5.25 25,069,203 6.06 3,360,329.00 0.81%
Total of restricted circulating 126,283,055 30.54 126,283,055 30.53 - -
On May 29, 2008, Hefei State-owned Assets Supervision & Administration Commission
［HGZCQuan(2008)No.59］issued Notice On Meiling Dianqi Equities Held by Meiling
Group without Payment, in which 34,359,384 state-owned shares of Meiling Group held by
the Company (including 3,360,329 state-owned shares paid instead by Meiling Group for
other non-tradable shareholders in the Share Merger Reform)were transferred to Hefei
Xingtai Holding Group Co., Ltd(“Xingtai Holding Company”) without payment. On June 2,
2008, original Meiling Group Company and Xingtai Holding Company signed Agreement on
Equity Transfer Without Payment, in which Meiling Group Company agreed to transfer its
holding 30,999,100 state-owned shares(accounting for 7.49% in total shares) to Xingtai
Holding Company without payment; in the Share Merger Reform Scheme of the Company,
the equities, which were formed from the share merger reform consideration paid by Meiling
Group Company for other non-tradable shareholders, were also undertaken by Xingtai
Holding Company. For the aforesaid event, State-owned Assets Supervision and
Administration Commission of the State Council approved on August 7, 2008 with Reply to
Related Matters on Transfer Shares Held by Part of State-owned Shareholders of Hefei
Meiling Co., Ltd.Without Payment［GZCQuan(2007)No. 752］.
The aforementioned transferred shares have been accomplished the procedure of transferring
ownership in Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited.
On Oct. 28, 2008, 12,543,559 tradable shares, the first batch of the Company with
conditional subscription, were released conditional subscription, the share structure after
releasing the conditional conditions were as follows:
Before release After release
Proporti Proporti
on in on in
Amount Amount
Types total Types total
(share) (share)
shares shares
(%) (%)
I. Tradable shares with I. Tradable shares
conditional 126,350,310 30.55 with conditional 113,806,751 27.52
subscription subscription
68
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Before release After release
Proporti Proporti
on in on in
Amount Amount
Types total Types total
(share) (share)
shares shares
(%) (%)
Shares held by state 32,078,846 7.76 Shares held by state 32,078,846 7.76
State-owned legal State-owned legal
69,135,006 16.71 72,382,652 17.50
person’ shares person’ shares
Public legal person’s Public legal
25,069,203 6.06 9,277,998 2.24
shares person’s shares
Senior executives’ Senior executives’
67,255 0.02 67,255 0.02
shares shares
Foreign legal Foreign legal
- - - -
person’s shares person’s shares
II. Tradable shares
II. Tradable shares
with unconditional 287,292,639 69.45 with unconditional 299,836,198 72.48
subscription
subscription
A Public share 174,192,639 42.11 A Public share 186,736,198 45.14
B share 113,100,000 27.34 B share 113,100,000 27.34
H share and others - - H share and others - -
III. Total shares 413,642,949 100.00 III. Total shares 413,642,949 100.00
On Oct. 29, 2008, Changhong Group sigend Agreement on Eqity Transfer of Hefei Meiling
Co., Ltd with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditioan
subscription of the Company (accounting for 7.76% in total shares) held by Changhong
Group Company. On Dec. 23, 2008, for the aforesaid event, State-owned Assets Supervision
and Administration Commission of the State Council approved with Reply to Related
Matters on Transfer Shares Held by State-owned Shareholders of Hefei Meiling Co., Ltd.
［GZCQuan（2008）No. 1413］. The aforesaid equity transfer have been accomplished the
procedure of transferring the ownership in Shenzhen Branch of China Securities Depository
and Clearing Corporation Limited on Janurary 21, 2009.
In 2008, Sichuan Changhong held 4,277,155 additional circulating A-share of the Company
in aggregate through the trading system of Shenzhen Stock Exchange, and 5,888,405
additional B-share of the Company in aggregate through its whole-owned subsidiary
Changhong (Hong Kong) Trade Co., Ltd.(hereinafter referred to as Hong Kong
69
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Changhong);during 2009, it held 6,287,486 additional B-share of the Company in aggregate
through Hong Kong Changhong. As at 31 December 2009, Sichuan Changhong and Hong
Kong Chang (person under the concert) totally held 91,642,767 shares of the Company,
representing 22.06% of the total share capital, among which, Sichuan Changhong directly
held 74,491,952 A-share of the Company and Hong Kong Changhong held 17,150,815
circulating B-share of the Company, representing 18.01% and 4.15% of the total share
capital respectively.
The second batch of the considtional shares of the Company amount to 74,074,020 shares
were released on 4 January 2010. Share structure after releasing were as follows:
Before relase After release
Proporti
Proportio
on in
Amount of n in total Amount of
Types Types total
shares shares shares
shares
(%)
(%)
I. tradable shares I. tradable shares
with conditional 113,806,751 27.51 with conditional 39,732,731 9.61
subscription subscription
State-owned shares - - State-owned shares - -
State-owned legal State-owned legal
104,461,498 25.25 30,387,478 7.35
person shares person shares
Public legal person’s Public legal person’s
9,277,998 2.24 9,277,998 2.24
shares shares
Senior executives’ Senior executives’
67,255 0.02 67,255 0.02
shares shares
Foreign legal Foreign legal
- - - -
person’s shares person’s shares
II. Total of II.Total of
un-restricted tradable 299,836,198 72.48 un-restricted tradable 373,910,218 90.39
shares shares
A Public share 186,736,198 45.14 A Public share 260,810,218 63.05
B-share 113,100,000 27.34 B-share 113,100,000 27.34
H share and others - - H share and others - -
III. Total of shares 413,642,949 100.00 III. Total of shares 413,642,949 100.00
On 29 January 2010, 9 restricted circulating shareholders, including Hefei Machine Mould
Factory, entrusted the Board of the Company to apply for repayment of consideration paid in
advance from Shenzhen Stock Exchange and China Securities Depository & Clearing Corp.
70
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Ltd. Shenzhen Branch. After payment of compensation, the shares without trade condition
are as follow:
tradable restricted
shares held at
Released shares
implementation date
of share merger reform
Payment
Proporti Proporti
of
No. Name of repayment party on of on of
Total advanc Total
total total
shares ement shares
share shares share
(share) (share)
capial capial
(%) (%)
1 Hefei Machinery Mould Plant 170,775 0.04 26,049 144,726 0.04
Taizhou Shuangling Air
2 85,387 0.02 13,024 72,363 0.02
Conditioner Pipe Manuafacture
Anhui Children and Teenagers’
3 85,387 0.02 13,024 72,363 0.02
Fund
Cixi XianglongMould Plastic
4 512,325 0.12 78,147 434,178 0.11
Co., Ltd.
Shanghai Shenwan Commerce
5 170,775 0.04 26,049 144,726 0.04
Consultant Co., Ltd.
Yuyao Electricial Apparatus Key
6 509,220 0.12 77,674 431,546 0.10
Plant
7 Zhao Fugen 128,081 0.03 19,537 108,544 0.03
China Xinda Assets Management
8 1,536,975 0.37 234,442 1,302,533 0.31
Company
9 Ningguo City Rural Credit Union 85,387 0.02 13,024 72,363 0.02
Total 3,284,312 0.79 500,970 2,783,342 0.67
The third batch of the restricted shares of the Company amount to 27,833,420,000 shares
were released on 23 March 2010. Share structure after releasing were as follows:
Before relase After release
71
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Proporti Proporti
Amount of Amount of
Type of share on Type of share on
shares shares
(%) (%)
I. Total restricted I. Total restricted
39,732,731 9.61 36,949,389 8.93
tradable shares tradable shares
State-owned shares - - State-owned shares - -
State-owned legal State-owned legal
30,654,006 7.41 29,351,473 7.09
person shares person shares
Public legal person’s Public legal person’s
8,902,926 2.15 7,530,661 1.82
shares shares
Senior executives Senior executives
67,255 0.02 67,255 0.02
shares shares
Other domestically Other domestically
108,544 0.03 - -
nature person shares nature person shares
II. Total un-restricted II. Total un-restricted
373,910,218 90.39 376,693,560 91.07
tradable shares tradable shares
A Public share 260,810,218 63.05 A Public share 263,593,560 63.73
B-share 113,100,000 27.34 B-share 113,100,000 27.34
H share and others - - H share and others - -
III. Total shares 413,642,949 100.00 III. Total shares 413,642,949 100.00
The fourth batch of the restricted shares of the Company amount to 29,127,572 shares were
released on 15 December 2010. Share structure after releasing were as follows:
Before relase After release
Proporti Proporti
Amount of Amount of
Type of share on Type of share on
shares shares
(%) (%)
I. Total restricted I. Total restricted
36,949,389 8.93 7,821,817 1.89
tradable shares tradable shares
State-owned shares - - State-owned shares - -
72
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Before relase After release
Proporti Proporti
Amount of Amount of
Type of share on Type of share on
shares shares
(%) (%)
State-owned legal State-owned legal
29,351,473 7.09 500,970 0.12
person shares person shares
Public legal person’s Public legal person’s
7,530,661 1.82 7,253,592 1.75
shares shares
Senior executives Senior executives
67,255 0.02 67,255 0.02
shares shares
Other - - Other - -
II. Total
II. Total un-restricted
376,693,560 91.07 un-restricted 405,821,132 98.11
tradable shares
tradable shares
A Public share 263,593,560 63.73 A Public share 292,721,132 70.77
B-share 113,100,000 27.34 B-share 113,100,000 27.34
H share and others - - H share and others - -
III. Total shares 413,642,949 100.00 III. Total shares 413,642,949 100.00
nd th
Pursuit to the approval from the 32 Meeting of 6 Board held on April 19, 2010, the 2nd
Extraordinary Shareholders Meeting 2010 and documentary approval of [ZJXK(2010)
No.1715] issued from CSRC on November 26, 2010, the Company offered no more than 130
million A-share to specific investor by private placement. Based on the acquisition, RMB
10.28 per share as final issued price, and 116,731,500 shares for offering this time. Purchaser
situation as:
Shares purchased Amount
Serials Name Lock-up
(share) purchased(RMB)
Sichuan Changhong Electric
1 38,910,500 399,999,940.00 36 months
Co., Ltd.
China Life Assets Management
Co., Ltd.
2 Dragon Life Insurance Co., 20,000,000 205,600,000.00 12 months
Ltd.- All-purpose insurance
product
Fuligoal Fund Management Co.,
3 20,000,000 205,600,000.00 12 months
Ltd.
Guotai Junan Securities Co.,
4 10,000,000 102,800,000.00 12 months
Ltd.
5 Founder Securities Co., Ltd. 9,000,000 92,520,000.00 12 months
73
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Ningbo Weichuang Union
6 9,000,000 92,520,000.00 12 months
Investment Co., Ltd.
7 Donghai Securities Co., Ltd 9,000,000 92,520,000.00 12 months
Guotai Fund Management Co.,
8 821,000 8,439,880.00 12 months
Ltd.
Total 116,731,500 1,199,999,820.00 -
RMB 1,199,999,820 was totally for raised from private placement this time, RMB
1,177,837,589 being raised for net amount after decuting issuing expenses RMB 22,162,232.
The Company have RMB 116,731,500 increased in register capital(share capital), RMB
1,061,106,088.5 increased in capital public reserve(share premium). The capital increased
was verified by the verification report [XYZH2010CDA6021] of Shin Wing Certified Public
Accountants Co., Ltd. Re-registration of Industrial & Commerce still in process. Shares
structure after placement as:
Before change After change
Type of stock
Quantity Proportion(%) Quantity Proportion(%)
I. Restricted shares 7,821,817 1.89 124,553,317 23.48
1. State-owned shares - - - -
2. State-owned legal person’s
500,970 0.12 39,411,470 7.43
shares
3. Other domestic shares 7,253,592 1.75 85,074,592 16.04
Including: Domestic 7,253,592 1.75 85,074,592 16.04
t t d l
Domestic natural person’sl - - - -
h
4. Foreign shares - - - -
Including: Foreign legal - - - -
Foreign’ h natural person’s - - - -
h
5. Senior executives’ shares 67,255 0.02 67,255 0.01
II. Unrestricted shares 405,821,132 98.11 405,821,132 76.52
1. RMB Ordinary shares 292,721,132 70.77 292,721,132 55.19
2. Domestically listed foreign 113,100,000 27.34 113,100,000 21.33
3.h Overseas listed foreign - - - -
h
4. Others - - - -
III. Total shares 413,642,949 100.00 530,374,449 100.00
As December 31,2010 ended, total share capital of the Company amounting to 530,374,449
shares with ordinary shares in full. Among which, 417,274,449 shares of A-share accounting
78.68% in total shares while B-share with 113,100,000 shares accounting 21.32% in total
shares. In total share capital of the Company, conditional A-share owns 124,553,317 shares,
un-conditional A-share owns 292,721,132 shares while un-conditional B-share owns
113,100,000 shares.
Till end of 30 June 2011, he share structure of the Compny as follow:
Before change After change
Type of stock
Quantity Proportion(%) Quantity Proportion(%)
I. Restricted shares 124,553,317 23.48 124,575,736 23.49
74
Hefei Meiling Co., Ltd. Semi-annual Report 2011
1. State-owned shares - - - -
2. State-owned legal person’s 67,461,338 12.72 67,461,338 12.72
h
3. Other domestic shares 57,024,724 10.75 57,024,724 10.75
Including: Domestic 57,024,724 10.75 56,939,337 10.73
t
Domestict d
natural person’sl
l
- - 85,387 0.02
h
4. Foreign shares - - - -
Including: Foreign legal - - - -
Foreign’ h natural person’s - - - -
h
5. Senior executives’ shares 67,255 0.01 89,674 0.02
II. Unrestricted shares 405,821,132 76.52 405,798,713 76.51
1. RMB Ordinary shares 292,721,132 55.19 292,698,713 55.19
2. Domestically listed foreign 113,100,000 21.33 113,100,000 21.32
3.h Overseas listed foreign - - - -
h
4. Others - - - -
III. Total shares 530,374,449 100.00 530,374,449 100.00
In report period, total share capital of the Company amounting to 530,374,449 shares with
ordinary shares in full. Among which, 417,274,449 shares of A-share accounting 78.68% in
total shares while B-share with 113,100,000 shares accounting 21.32% in total shares. In
total share capital of the Company, conditional A-share owns 124,553,317 shares,
un-conditional A-share owns 292,721,132 shares while un-conditional B-share owns
113,100,000 shares.
2. business nature and its business activities
The Company belongsto the manufacture of light industry, and engaged in the production
and sale of refregirator, freezer and air-conditioner.
Registration No. of the Business License of Corporation Legal Person: 340000400001278;
Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City;
Legal Representative: Zhao Yong; Business Scope: Manufacture of cooling apparatus,
air-conditioner, washing machine, injection plastic machine of computer controlling,
computer heater, plastic products, packaging products and decorations. Business of
self-produced products, technology export and import&export of the raw&auxilary materils,
machinery equipment, instrument and technology; department sales and transportation.
3. Name of the parent Company and final actual controller of the Group
Parent Company of the Company is Sichuan Changhong Electric Co., Ltd., ended June 30,
2011, Sichuan Changhong and its accord actionist totally held 24.62% shares of the
Company and is the first largest shareholder; Changhong Group held 1,061,720,526 shares
of Sichuan Changhong accounting for 29.83% and is the first largest shareholder of Sichuan
Changhong; State-owned Assets Supervision & Administration Commission of Mianyang
Municipality held 100% equities of Changhong Group and is the final actual controller of the
Company. Xingtai Holding Company held 33,210,696 shares of the Company accounting for
6.26% and is the second largest shareholder of the Company.
4. Basi organization frame of the Company
Shareholders’ general meeting is the authority organization of the Company which perfom
its resolution rights on significant matters legally such as operation goal, financing,
investment, and profit distribution, etc. The board is responsible fro the shareholders’ general
meeting and perform its decision-making rights on operations of the Company. The
management team is responsible for organizing and implementing the resolutions formed in
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
shareholders’ general meeting and board, and presidens the managements on production and
operation of the Company. The functional management departments of the Company include
Operation and Management Department, Academe, Technology Center, HR Department,
Financial Management Department, air conditioner division, ice cuber division, refrigerator
division, domestic marketing division and overseas division etc.
Organizational structure as:
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
II. Basis for preparation of financial statement
The financial statements of the Company were prepared in accordance with the actual
transactions and proceedings, and relevant regulation of Accounting Standards for Enterprise
released by the Ministry of Finance, and was on the basis of sustainable operation, and the
accounting policy and estimation stated in the IV-“Significant Accounting Policy,
Accounting Estimation and Preparation Method for Consolidated Financial Statement”.
III. Statement on Observation of Accounting Standard for Enterprise
The financial statement prepared by the Company applies with the requirements of
Accounting Standard for Enterprise, and reflects the financial condition, operational
achievements and cash flow of the Company effectively and completely.
IV. Significant Accounting Policy, Accounting Estimation and Preparation Method for
Consolidated Financial Statement
1. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
2. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
3. Accounting basis and pricing principle
The Company adopts accrual basis accounting as the accounting basis for accounting
calculation. Except for the tradable financial assets and financial assets available-for-sale are
measured with fair value, historical cost is used as pricing principle.
4. Cash and cash equivalent
The cash reflected in the cash flow statement of the Company represents the inventory cash
and the deposit available for payment at any time. And the cash equivalent in the cash flow
statement refers to the kind of investment with holding term not exceeding 3 months and
strong flow ability. At the same time, the cash equivalent is easy to convert into cash with
already-known amount and risk of value change is very small.
5. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount
into RMB amount pursuant to the spot exchange rate as of the business day. As at the
balance sheet date, monetary items expressed by foreign currency are converted into RMB
pursuant to the spot exchange rate as of the balance sheet date. The conversion difference
occurred is recorded into prevailing gains and losses, other than the disclosure which is made
according to capitalization rules for the exchange difference occurred from the special
foreign currency borrowings borrowed for constructing and producing the assets satisfying
condition of capitalization. As for the foreign currency non-monetary items measured by fair
value, the amount is then converted into RMB according to the spot exchange rate as of the
confirmation day for fair value. And the conversion difference occurred during the procedure
is recorded into prevailing gains and losses directly as change of fair value. As for the
foreign currency non-monetary items measured by historical cost, conversion is made with
the spot exchange rate as of the business day, with no change in RMB amount.
(2)Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and
liabilities in foreign currency balance sheet; as for the items in statement of owners’ equity
except for “Undistributed profit”, conversion is made pursuant to the spot exchange rate of
business day; income and expense items in income statement then are also converted
pursuant to the spot exchange rate of transaction day. Difference arising from the
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
aforementioned conversions shall be listed separately in items of owners’ equity. Spot
exchange rate as of the occurrence date of cash flow is adopted for conversion of foreign
currency cash flow. The amount of cash affected by exchange rate movement shall be listed
separately in cash flow statement.
6. Financial assets and financial liabilities
(1) Financial assets
In consideration of investment targets and economic essence, the Company groups the
financial assets owned by it as four categories, namely financial assets measured by fair
value and whose movement is recorded into prevailing gains and losses, held-to-maturity
investment, loans and accounts receivables, as well as financial assets available-for-sale.
1) Financial assets measured by fair value and whose movement is recorded into prevailing
gains and losses represent the financial assets which are held mainly for disposal in a short
time and listed as tradable financial assets in the balance sheet.
2) Held-to-maturity investment represents the non-derivative financial assets which has fixed
maturity day, fixed or available-for-confirmation recovered amount and for which the
management has definite intention and ability to hold till maturity.
3) Loans and accounts receivables represent the non-derivative financial assets which have
no quotation in an active market and fixed or available-for-confirmation recovered amount.
4) Financial assets available-for-sale include the non-derivative financial assets
available-for-sale and the financial assets which have not been grouped as others at the initial
confirmation.
Financial assets are initially recognized by fair value. For the financial assets which are
measured by fair value and whose fair value change is recorded into prevailing gains and
losses, the relevant transaction expense arising from acquisition is recorded into prevailing
gains and losses directly, while the relevant transaction expense of other financial assets is
recorded into initial recognition amount. When the right endowed by contract for certain
financial asset to collect cash flow has ceased or all the risks and remuneration relating to
ownership of the financial asset have almost transferred to transferee, recognition for this
financial asset shall then be terminated.
Financial assets which are measured by fair value and whose fair value change is recorded
into prevailing gains and losses, together with financial assets available-for-sale, would have
follow-up measurement according to fair value; effective interest method is adopted for
loans and accounts receivables and held-to-maturity investment which are shown in
amortized cost.
Fair value change of financial assets which are measured by fair value and whose fair value
change is recorded into prevailing gains and losses is recorded into gains and losses of fair
value change; interests or cash dividend acquired from holding assets are recognized as
investment income; when disposing such assets, the difference between their fair value and
initial accounting amount is recognized as investment gains and losses. Meanwhile, gains
and losses of fair value shall be adjusted.
Fair value change of financial assets available-for-sale is recorded into shareholders’ equity;
the interests calculated by effective interest rate method during the holding period are written
into investment income; cash dividend obtained from investment by equity instrument
available-for-sale is written into investment income at the time when the invested company
declares to grant dividend; the difference between the payment received when disposal of
such assets and carrying value after deducting the accumulative fair value change which is
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
originally and directly recorded into shareholders’ equity, is written into investment gains
and losses.
Except for the financial assets which are measured by fair value and whose fair value change
is recorded into prevailing gains and losses, the Company will make check in the carrying
value of other financial assets as at the balance sheet date. If there is objective evidence
proving impairment of certain financial assets, the Company then makes provision for
impairment. It a comparatively great or non-temporary decline appears in fair value of
financial assets available-for-sale, and then the accumulative losses formed from decline of
fair value which is originally recorded into shareholders’ equity shall be written into
impairment losses.
(2)Financial liabilities
When making the initial recognition for financial liabilities, the Company classifies the
financial liabilities into ones which are measured by fair value and whose change is recorded
into prevailing gains and losses, and other financial liabilities.
Financial liabilities which are measured by fair value and whose change is recorded into
prevailing gains and losses include tradable financial liabilities and financial liabilities which
are measured by fair value and whose change is recorded into prevailing gains and losses at
the initial recognition day. Follow-up measurements are made by fair value. Recorded into
prevailing gains and losses are the gains or losses formed through fair value change and
dividend and interest expenditure regarding to the financial liabilities.
As for other financial liabilities, effective interest rate method is adopted and follow-up
measurement is made according to amortized cost.
(3)Method for recognition of fair value of financial assets and liabilities
For those financial instruments existing in active markets, market quotation in the active
market is used to confirm their fair values. In active market, the Company takes the present
bid price of already-held financial assets or plan-to-undertake financial liabilities as the fair
values of relevant assets and liabilities; the Company takes the present offer price of
plan-to-buy financial assets and –already-undertaken liabilities as the fair values of relevant
assets and liabilities. In the situation that there are no present bid and offer price for financial
assets and liabilities, while there is no material change in economic environment after the
latest business day, then fair value of the financial assets and liabilities is to confirm pursuant
to the latest business market quotation.
Fair value of the financial instruments which have no active market is confirmed by adoption
of estimation technology. Estimation technology includes reference to the price applied by
parties which know well situation and are willing to make deals in the latest market business,
reference to the current fair value of other financial assets which are the same in principle,
reference to discounted cash flow method and option pricing model.
7. Bad debt provision for accounts receivable
Allowance method is adopted for the bad debt losses which are likely to happen. And bad
debt provision is withdrawn at the end of the period, and then recorded into current gains and
losses. As for the accounts receivable which are not able to call back through definite
evidence, they shall be treated as bad debt losses after approval of the Company according to
regulated procedures to offset withdrawn bad debt provision. The following situation as
standards for confirmation of bad debt losses of accounts receivable: revoke, bankruptcy,
insolvency, serious insufficiency of cash flow of its debit units, or the debit units have to
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
stop production due to serious natural disaster and are not able to settle the debts or in
predicted time, or other definite evidence showing that the debt is not available to call back
or the possibility of calling back is tiny.
Withdrwal of bad bedt provision at period-end:
(1) Account receivable with single significant amount and withdrwal single item bad debt provision
Determine basis or amount
Account receivable over RMB20 million at period-end balance, other
standards for single
account receivable over RMB 1 million at period-end balance
significant amount
withdrwal method for Impairment test on the current value of predicted future cash flow, bad
account receivable with single debt provision withdrwal. If occurred depreciation, independenly
significant amount and withdrwal bad debt provision without combination basis; if no
withdrwal single item bad debt depreciation happened, impairment test base on the combination nature
provision that included in the combination.
(2) Account receivable withdrwal bad debt provision based on combination:
Basis for combination recognized
Combination 1 Account receivable except the reserve loans of employee, investment loans
Combination 2 Account receivable of the reserve loans of employee, investment loans and
Methods on withdrwal of bad debt provision based on combination
Combination 1 Age analysis
Combination 2 Balance proportion
Combination 1: withdrwal proportion of bad bedt provision for account receivable based on
age analysis:
withdrwal proportion of withdrwal proportion of other
Age
account receivable(%) account receivable(%)
Within 1year(1year
5 5
included )
1－2 years 15 15
2－3 years 35 35
3－4 years 55 55
4－5 years 85 85
Over 5 years 100 100
Combination 2: withdrwal proportion of bad bedt provision for account receivable based on
balance proportion :
withdrwal proportion of withdrwal proportion of other
Combination
account receivable(%) account receivable(%)
Combination 2 0.00% 0.00%
Account receivable in combination 2 have the risk in control and withdrwal no bad debt
provision.
(3) Account receivable with single minor amount but withdrwal single item bad debt provision:
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
Reasons for withdrwal single Account with minor amount but have significant inflow risk on predicted
item bad debt provision future cash flow
Impairment test on the current value of predicted future cash flow, bad
debt provision withdrwal. If occurred depreciation, independenly
withdrwal method for bad
withdrwal bad debt provision without combination basis; if no
debt provision
depreciation happened, impairment test base on the combination nature
that included in the combination.
8. Inventories
Inventories of the Company principally include raw materials, stock goods, work in process,
self-made semi-finished product, materials consigned to proceed, low-value consumption
goods as well as amortized mould expense, etc. Perpetual inventory system is applicable to
inventories. For daily calculation, standard price is adopted for raw materials, low-value
consumption goods and stock goods. Switch-back cost of the current month is adjusted by
distribution price difference at the end of the month, the dispatched goods will share the cost
differences of inventory while in settlement the business income; and low-value
consumption goods is carried forward at once when being applied for use; the mould
expenses will evenly deferred share based on balance at period-begin plus increase amount
in this period divided by 12 months.
Inventory at period-end valued by the Lower-of-value between the cost and net realizable
value.
(1) Determined the net realizable value of raw materials on the higher amount between the
final price of estimated sale-price deducted cost( about to happened till profucts finished),
estimated sales expense and relevant taxes, and the fair value of external disposal. Recent
years, the raw materials are in the high price stage, except the raw materials need for soley
depreciation provision withdrwal for damaged, over-time or degrade products, no withdrwal
provision for obsolete stocks provided.
(2) Withdrwal obsolete provision for commodity stocks and send-out commodity by the
follow proportion:
Grade Stock duration Withdrwal proportion for obsolete provision
Within 3 months 0%
4-6 months 5%
7-12 months 15%
Grade-A
1-2 years 25%
2-3 years 40%
Over 3 years 100%
Qualified 40%
Grade-B 50%
Grade-C 60%
Disposal 65%
Unqualified 60%
Sample machine 30%
Special user type that exceed the order 50%
The Company re-check the above mentioned proportion at every end of the year. Calculated
the net realizable value by difference between the estimated sale price less the estimated
sales expense and relevant taxation; after comparision with the book value of commodity
stocks and sent-out commodity, determined whether adjusted the proportion or not.
(3) the precent products produced according to the market requirement usually, and without
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
significant obsolete avidence in short-term, so withdrwal no obsolete provision.
(4) Mould expense will amortize in instalment in usual times. Once the use-life of mould
being terminated, than transfer its remaining cost into gains/losses, and no withdrwal of
obsolete provision at period-end.
9.Long-term equity investment
Long-term equity investment mainly includes the equity investment which entitles the
Company to conduct control, common control or significant influence over the invested units,
and the equity investment which couldn’t entitle the Company to conduct control, common
control or significant influence over the invested units and which have no quotation price in
active market and whose fair value could not be able to measured surely.
Common control refers to the control jointly enjoyed upon certain economic activity
according to regulations of contract. The reference to confirm a common control mainly
refers to that any single party of a joint-venture entity has no possibility to individually
control the production operation of the joint-venture; any decision relating to basic
operation activity of joint-venture entity all requires unanimous agreement from ench party.
Significant influence equals to that investor has right to participate in making decision for
finance and operational strategy of invested unit, while it has no right to control or jointly
control with oher parties upon formation of these strategies. As long as the Company directly
or indirectly holds through its subsidiaries over 20% but less than 50% voting shares of the
invested unit, then it could be called a significant influence. However, if there is obvious
evidence showing that the Company is not qualified in participating in making production
and operation decisions of the invested one, then no significant influence could stand up.
In situation of a long-term equity investment acquired by the Company through business
combination under common control, the carrying value of the owners’equity of the acquired
company as at the combination date is deemed as initial investment cost for this long-term
equity investment. In situation of a long-term equity investment acquired by the Company
through business combination not under common control, the combination cost is recognized
according to the fair value of assets, liabilities occurred or undertaken, and equity securities
issued as at the combination (purchase) date for obtaining control right over the acquired
(purchased) party.
Excluding the long-term equity investment acquired through business combination, there is
also a king of long-term equity investment acquired through cash payment, for which the
actual payment for the purchase shall be initial investment cost; If Long-term equity
investments are acquired by issuing equity securities, fair value of issuing equity investment
shall be initial investment cost; for Long-term equity investments which are invested by
investors, the agreed price in investment contract or agreement shall be initial investment
cost; and for long-term equity investment which is acquired thtough debt reorganization and
non-monetray assets exchange, regulations of relevant accounting standards shall be referred
to for confirming initial investment cost.
The Company adopts cost method for investment in subsidiaries and makes adjustment by
equity method when preparing combinated financial statement; makes calculation for
investments in joint-ventures and associates by equity method; make calculation by cost
method for long-term equity investment upon which the Company has no control, common
control or significant influence and which have no quotation price in active market and
whose fair value could not be able to measured surely; and for the long-term equity
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
investment upon which the Company has no control, common control or significant influence
while which do have quotation price in active market and whose fair value could be able to
measured surely, the Company calculate it as financial asset available-for-sale.
When calculated by cost method, long-term equity investment is priced according to its
initial investment cost, and cost of the investment is adjusted when making additional
investment or writing off investment. When calculated by equity method, current investment
gains and losses represent the proportion of the net gains and losses realized by the invested
unit in current year attributable to or undertaken by the investor. When the Company is
believed to enjoy proportion of net gains and losses of invested unit, gaisn and losses
attributable to the Company according to its shareholding ratio is to computer out according
to the accounting policy and accounting period of the Company, on the basis of the fair value
of various recognizable assets of the invested unit as at the date of obtaining of the
investment, after offset of gains and losses arising from internal transactions with associates
and joint-ventures, and finally to make confirmation after adjustment of net profit of the
invested unit. Confirmation on gains and losses from the long-term equity investment in
associates and joint-ventures held by the Company prior to the first execution day, could
only stand up with the precedent condition that debit balance of equity investment straightly
amortized according to its original remaining term has already been deducted, if the
aforementioned balance relating to the investment do exist.
The Company switches to cost method for calculating the long-term equity investments
which do not entitle the Company to have common control or significant influence over the
invested units and which have no quotation in active market and whose fair value could not
be able to measured surely due to decrease of investments by the Company; and also
switches to cost method for calculating the long-term equity investments which entitles the
Company to have conduct control over the invested units due to its additional investments;
and switches to equity method for calculating the long-term equity investments which
entitles the Company to conduct common control or significant influence,while no control
over the invested units due to its additional investments, or the long-term equity investments
which entitles the Company with no control over the invested units any longer while with
common control or significant influence.
When disposing long-term equity investment, the balance between its carrying value and
effective price for obtaining shall be recorded into current investment income. When
disposing long-term equity investment which are calculated by equity method, the proportion
originally recorded in owners’equity shall be transferred to current investment income
according to relevant ratio, except for that other movements of owners’equity excluding net
gains and losses of the invested units shall be recorded into owners’equity.
10. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is
accounted value by its cost. Cost of purchased-in investment real estate consists of payment
for purchase, relevant taxes and other expenditure which is attributable to the assets directly;
while cost of self-built investment real estate is formed with all necessary expenditures
occurred before construction completion of the assets arriving at the estimated utilization
state.
Consequent measurement of investment estate shall be measured by cost method.
Depreciation is provided with average service life method pursuant to the predicted service
life and net rate of salvage value. The predicted service life and net rate of salvage value and
annual depreciation are listed as follows:
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
Depreciation term Predicted rate of Depreciation rate
Type
(year) salvage value(%) per annum(%)
Houses and buildings 30-40 years 4% 2.40%-3.20%
When investment real estate turns to be used by holders, it shall switch to fixed assets or
intangible assets commencing from the date of such turning. And when self-used real estate
turns to be leased out for rental or additional capital, the fixed assets or intangible assets
shall switch to investment real estate commencing from the date of such turning. In situation
of switch, the carrying value before the switch shall be deemed as the credit value after the
switch.
When investment is disposed, or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal, the Company shall terminate recognition of such
investment real estate. The amount of income from disposal, transfer, discarding as scrap or
damage of investment real estate after deducting the asset’ s carrying value and relevant
taxation shall be written into current gains and losses.
11.Fixed assets
Fixed assets of the Company represent the tangible assets and assets package: held by the
Company for purpose of producing commodities, providing labor service, leasing or
operational management, service life exceeds one year, and unit price exceeds RMB 2,000.
Including four categories of houses and buildings, machinery equipments, transportation
equipments and other equipments.
Their credit value are determined on the basis of the cost taken for obtaining them. Of which,
cost of purchased-in fixed assets include bidding price and import duty and relevant taxes,
and other expenditure which occurs before the fixed assets arrive at the state of predicted
utilization and which could be derectly attributable to the assets; while cost of self-built fixed
asset is formed with all necessary expenditures occurred before construction completion of
the assets arriving at the estimated utilization state; credit value of the fixed assets injected
by investors is determined based on the agreed value of investment contracts or agreements,
while as for the agreed value of investment contracts or agreements which is not fair, it shall
take its fair value as credit value; and for fixed assets which are leased in through finance
leasing, credit value is the lower of fair value of leased assets and present value of
minimized leasing payment as at the commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update
reform. For those meeting requirements for recognization of fixed assets, they would be
accounted as fixed asset cost; and for the part which is replaced, recognization of its carrying
value shall cease; for those not meeting requirements for recognization of fixed assets, they
shall be accounted in current gains and losses as long as they occur. When fixed asset is
disposed, or no economic benefit would be predicted to obtain through utilization or disposal
of the asset, the Company shall terminate recognization of such fixed asset. The amount of
income from disposal, transfer, discarding as scrap or damage of fixed asset after deducting
the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
The Company withdraws depreciation for all fixed assets except for those which have been
fully depreciated while continuing to use. It adopts average service life method for
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
withdrawing depreciation which is treated respectively as cost or current expense of relevant
assets according to purpose of use. The depreciation term, predicted rate of salvage value
and depreciation rate applied to fixed assets of the Company are as follows:
Predicted rate of Depreciation rate per
No. Type Depreciation term
salvage value annum
Houses and 30-40
1 4% 3.20%-2.40%
buildings years
Machinary 10-14
2 4% 9.60%-6.86%
equipments years
Transportation
3 5-12 years 4% 19.00%-8.00%
equipments
4 Other equipments 8-12 years 4% 12.00%-8.00%
The Company makes re-examination on predicted service life, predicted rate of salvage
valueand depreciation method at each year-end. Any change will be treated as accounting
estimation change.
12. Construction in process
Construction in process is measured with effective cost. Self-operated constructions projects
are measured with direct materials, direct salaries and direct construation expense;
construction projects undertaken by external are measured with the engineering payment
payable; and engineering cost (income abatement) of equipment-installation projects is
confirmed with consideration of value of the equipments, installation fee, and expenditure
airsing from trial operation of the projects. Borrowing expense and exchange gains and
losses which should be capitalized are also included in cost of construction in process.
Commencing from the date when construction in process reaches condition for predicted
purpose of use, the Company carries forward the estimated value of the construction to fixed
assets, pursuant to engineering budget, engineering cost or effective cost, and starts
depreciation withdraw from the next month. As long as procedure for completion settlement
is transacted, the Company shall make adjustment to difference of original value of the fixed
asset.
13. Borrowing expense
Borrowing expenses include interest expense, amortization of discount or premium, auxiliary
expenses and exchange difference due to borrowing in foreign currency. The borrowing
enpense which could be directly attributable to purchase or production of assets satisfying
capitalization condition, starts capitalization when capital expenditure and borrowing
expense occur and when necessary purchase or production conducted for promoting assets to
reach the predicted available-for-use or available-for-sale state; and capitalization shall cease
when purchased or produced assets satisfying capitalization condition have reached the
predicted available-for-use or available-for-sale state. Other borrowing expense is
recognized as expense during the occurance period.
Capitalization shall be exercised for interest expense actually occurred from special
borrowings in current period after deduction of the interest income arising from unutilized
borrowing capital which is saved in banks or deduction of investment income obtained from
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
temporary investment; For recognization of capitalized amount of common borrowing, it
equals to the weighted average of the assets whose accumulated expense or capital disburse
is more than common borrowing times capitalization rate of occupied common borrowing.
Capitalization rate is determined according to weighted average interest rate of common
borrowing.
Assets satisfying capitalization principle generally refer to fixed assets, investment real
estate and inventories which can only arrive at predicted available-for-use and
available-for-sale state after quite a long time (generally over one year) in purchase or
production activities.
If abnormal interruption happens during purchase or production of assets satisfying
capitalization principle and the interruption lasts over 3 months, the capitalization for the
borrowing expense shall pause until the purchase or production restarts.
14.Intangible assets
The Company holds intangible assets including land use right, trademark, patent technology
and non-patent technology. Intangible assets are measured according to the effective costs
paid for obtaining the assets. For those intangible assets purchased in by the Company, their
effective cost consist of actual payment and relevant other expenditure; for the intangible
assets input by investors, effective cost is determined according to the value agreed in
investment contracts and agreements, while if the agreed value is not fair, then effective
value is confirmed according to fair value.
Land use right is averagely amortized according to its transfer term commencing from the
sate of transfer; trademark use-rights averagely amortized by 10 years; patent technology,
non-patent technology and other intangible assets is averagely amortized according to the
shortest of their predicted sevice life, beneficial term concluded by contract and effective
term regulated by laws. Amortization amount is recorded in assets cost and current gains and
losses relevant to beneficial objectives.
Re-examination on predicted service life and amortization method of the intangible assets
which have limited service life shall be conducted at the end of each year. If changed, it
would be treated as change of accounting estimation. Re-examination on predicted service
life of intangible assets which have uncertained service life shall be conducted. For any
evidence proving that service life of intangible assets is limited, then the service life shall be
estimated and the Company shall make amortization within the predicted service life period.
15. Research and development
As for expenditure for research and development, the Company classifies it into expenditure
on research phase and development phase, based on nature of the expenditure and that
whether the final intangible assets formed by research & development is of great uncertainty.
Expenditure arising during research should be recorded in current gains and losses upon
occurance; expenditure arising during development is confirmed as intangible assets when
satisfying the following conditions:
(1)Completion of the intangible assets make it available for application or sell in technology;
(2)Equipped with plan to complete the intangible asset and apply or sell it;
(3)There is market for products produced with this intangible assets or the intangible asset
itself;
(4)Have sufficient technology, financial resource and other resources to support
development of the intangible assets, and have ability to apply or sell the assets;
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
(5)Expenditure attributable to development of the intangible assets could be reliablely
measured.
Expenditure arising during development not satisfying the above conditions shall be
recorded in current gains and losses upon occurance. Development expenditure which had
been recorded in gains and losses in previous period would not be recognized as assets in
later period. Expenditure arising during development phase which has been starting
capitalization is listed in balance sheet as development expenditure, and transferred to
intangible assets since the project reaches at predicted utilization state.
16. Impairment of non-financial long-term assets
As at each balance sheet date, the Company has inspection on long-term equity investment,
fixed assets, construction in process and intangible assets with limited service life. When the
following indications appear, assets may be impaired, and the Company would have
impairment test. As for goodwill and intangible assets which have uncertained service life,
no matter there is impairment or not, impairment test shall be conducted at the end of every
year. If it is hard to make test on recoverable amount of single asset, test is expected to make
on the basis of the assets group or assets group portfolio where such asset belongs to.
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the
balance is recognized as impairment loss. As long as impairment loss of the aforementioned
assets is recognized, it couldn’t be switched back in later accounting periods. Recoverable
amount of assets refers to the higher of fair value of assets net disposal expense and present
value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1)Market value of asset drops a lot in current period, the drop scope is obviously greater
than the predicted drop due to move-on of times or normal utilization;
(2)Economy, technology or law environment where enterprise operates or market where
asset is located will have significant change in current or recent periods, which brings
negative influence to enterprise;
(3)Market interest rate or returning rate of other market investments have risen in current
period, which brings influence in calculating discount rate of present value of predicted
future cash flow of assets, which leads to a great drop in recoverable amount of such assets;
(4)Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5)Asset has been or will be keep aside, terminating utilization or disposed advancely;
(6)Internal report of enterprise shows that economic performance of asset has been or will be
lower than prediction, such as that net cash flow created by asset or operation profit (or loss)
realized by asset is greatly lower (or higher) than the predicted amount;
(7)Other indications showing possible impairment of assets.
17. Goodwill
Goodwill reprensents balance between equity investment cost or business combination cost
under no common control exceeding the attributable part or fair value of recognizable net
assets of party invested or purchased (obtained through business combination) as of
acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And
goodwill relating to associates and joint-ventures is included in carrying value of long-term
equity investment.
18. Long-term deferred expenses
Long-term deferred expenses of the Company refers to the expense which has been paid out
while should be amortized from the current period and periods thereafter, with amortization
term over 1 year(excluding 1 year). Such expense is averagely amortized during the
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
beneficial period. If such long-term deferred expense could not bring benefit to following
accounting periods, the unamortized value of the item shall be fully transferred to current
gains and losses.
19. Staff remuneration
The Company recognizes staff remuneration payable as liabilities during the accounting
period when staff provide services, and records it to relevant assets cost and expense based
on beneficial objectives of services provided by staff. Compensation for dismiss labor
relationship with employee shall be recorded in current gains and losses.
Staff remuneration principally includes salary, bonus, allowance, subsidy, welfare, social
insurance, housing public fund, labor union fee and special charge for education, etc, and
expenditure relevant to obtaining services provided by employee.
If the Company determines to cancel labor relationship with employee before due of
contracts, or offers compensation for encouraging employee who are willing to accept
personnel reduction, if the Company has already set official plan of cancellation of labor
relationship or presented willing reduction recommendation which are going to be executed,
at the same time, the Company is not able to cancel dismiss of labor relationship or reduction
recommendation, the projected liabilities arising from compensation for dismiss of labor
relationship is recorded in current gains and losses.
20. Estimated liabilities
If the business in connection with such contingencies as a security involving a foreign party,
commercial acceptance bill discount, pending litigation or arbitration, product quality
assurance, etc. meets all of the following conditions, the Company will confirm the aforesaid
as liabilities: the obligation is an existing obligation of the Company; performance of the
obligation is likely to cause economic benefits to flow out of the enterprise; the amount of
the obligation is reliably measurable.
The Company predicted the maintenance fee for ten-year-free repiring on major parts of
country-oriented refregirator based on the “Three Gurantee” and the implemented of ‘Three
Guarantee” policy of the Nation: Concerning the refregirator of “Three Gurantee” policy,
calculated based on the 1% of current sales income, less current maintenance fee, the
in-sufficient part will predicted reckoned into predicted liability. Concernning the
country-oriented refregirator based on the promise of ten-year-free repiring, withdrwal
methods and basis as:
Predicted liability of ten-year-free repairing =maintenance protability from 4 to 10 years
sales volume×overhaul proportion× overhaul fee per unit
Among which: maintenance protability from 4 to 10 years sales volume×proportion with
major or medium repairing will base on the historical maintenance data under the policy of
‘Three Gurantee”, being combine with technical analysis, speculated that the maintenance
protability from 4 to 7 years was the half of the maintenance proportion under “Three
Gurantee” policy; maintenance protability from 7 to 10 years was twice of the maintenance
proportion under “Three Gurantee” policy, the maintenance protability from 4 to 10 years
calculated by the rounded number from the above total. Overhaul proportion under ‘Three
Guarantee” will take the rounded number based on 50% up as the 4 to 10 years maintenance
overhaul proportion; overhaul fee per unit including transport fee, vechicle fee, maintenance
fee and fitting fee, which will calculated based on the maintenance agreement signed
between the Company and after-sale service office.
Taken the predicted maintenance fee annually which calculated un-stablely, and the
uncertainly facors duting 10 years into consideration, the Company provided no discount on
predicted liability temporary. Re-chcking the above mentioned withdrwal basis based on the
actual maintenance fee on every balance sheet date, the Company will adjuste book value for
89
Hefei Meiling Co., Ltd. Semi-annual Report 2011
perfect presentation currently.
21. Principle of recognition of revenue
The Company’s sales revenue is mainly comprised of revenue from sale of goods and
revenue from assignment of asset use rights. The principle of recognition of such revenue is
as follows:
(1) Revenue from the sale of goods shall be recognized when the Company has transferred to
the buyer the significant risks and rewards of ownership of the goods; the Company retains
neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the goods sold; the amount of revenue can be measured reliably; it
is probable that the associated economic benefits will flow into the Company; and the
associated costs incurred or to be incurred can be measured reliably.
(2) the economy benefit of use-right of transfer assets probably will inflow to the Company,
if the income can be measure accountability, than use-right income of transfer assets
recognized.
22. Subsidies of government
Government subsidy at the Company be able to meet its attached conditions, and can be
confirmed when received. Government grants for monetary assets, in accordance with the
measurement of the amount actually received, according to a fixed quota for the allocation of
the grant criteria, in accordance with the amount of accounts receivable measurement;
government subsidies for non-monetary assets, in accordance with the fair value, fair value
should not reliably achieved, in accordance with the notional amount (RMB 1.00)
measurement.
Asset-related government grants recognized as deferred income, and average life of related
assets included in the current profit and loss distribution. With the proceeds of the relevant
government subsidies to compensate for the period after the relevant costs or losses
recognized as deferred income and, while recognizing the associated costs included in
current period profit and loss; for compensation related costs that have occurred or loss,
directly gains and losses included in the current period.
23. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary
difference) between the carrying amount of an asset or liability and its tax base. The deferred
tax asset shall be recognized for the carry forward of unused deductible losses and tax credits
to the extent that it is probable that future taxable profits will be available against which the
deductible losses and tax credits can be utilized. At the balance sheet date, deferred tax assets
and deferred tax liabilities shall be measured at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settled.
The Company shall recognize the corresponding deferred tax asset for deductible temporary
differences as no higher than the taxable profits that will be available in the future, against
which the temporary difference can be utilized. The Company shall reduce the carrying
amount of a deferred tax asset to the extent that it is no longer probable that sufficient
taxable profits will be available in future periods to allow the benefit of the deferred tax asset
to be utilized. Any such reduction in amount shall be reversed to the extent that it becomes
probable that sufficient taxable profits will be available.
24. Lease
The Company categorizes the lease into the financial lease and the operating lease.
The financial lease is the lease in which all risks and returns related to the ownership of
assets are transferred in substance. The Company as a lease holder, on the date of lease, the
90
Hefei Meiling Co., Ltd. Semi-annual Report 2011
financial lease is recognized as the fixed asset at lower cost of fair value of the rental asset
and the NPV of minimum payment of leasing. The minimum payment of leasing is
recognized as long-term payable and the difference is accounted into unrecognized financing
expense.
The operating lease is the lease apart from the financial lease. The Company, as a lease
holder, accounts the rents into current period by straight line method during the term of the
lease. The Company, as a leaser, accounts the rental income into current period by straight
line method during the term of the lease.
25. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income
tax expenses include income tax in the current year and deferred income tax. The income tax
associated with the events and transactions directly included in the owners’ equity shall be
included in the owners’ equity; and the deferred income tax derived from business
combination shall be included in the carrying amount of goodwill, except for that above, the
income tax expense shall be included in the profit or loss in the current period.
The income tax expense in the current year refers to the tax payable, which is calculated
according to the tax laws on the events and transactions incurred in the current period. The
deferred income tax refers to the difference between the carrying amount and the deferred
tax assets and deferred tax liabilities at the year-end recognized in the method of debit in the
balance sheet.
26. Segment information
The business segment recognized base on the internal organization structure, management
requirement and internal report system, and report segment recognized based on business
segment. The business segment refers to the components that required the followed
conditions: the components have the ability of income generated and expenses generated in
daily activities; management evalue the component’s business results and decided resource
allocation and performance evaluation; accounting information of financial status, business
results and cash flow of the components are required for obtained by the Company. Business
segment was the major reporting form of the Company, which divided into 4 parts:
air-conditioner, refregirator and freezer, washing machine and others. The transfer price
among the segments will recognize based on the market price, common costs will allocated
by income proportion between segments except for the parts that without reasonable
allocation.
27. Discontinued operation
Discontinued operation refers to the component that has been disposed of or classified as
held for sale by the Company and that can be separately identified during operations and
preparation of financial statements. Such component is disposed of as a whole or partially
according to the Company’s plans.
The Company’s component meeting the following conditions at the same time is classified
as held for sale: the Company has made a resolution as to dispose of such component; the
Company has signed a unrevocable transfer agreement with the transferee and such transfer
will be completed within one year.
28. Transfer of financial assetss and methods for accounting of securitization business
of non-financial assets
Where a financial asset is transferred, judgment is made according to the transfer of nearly
all of the risks and rewards related to the ownership of the financial asset: if such risks and
rewards are all transferred, such financial asset is derecognized; if nearly all of the risks and
rewards related to the ownership of the financial asset are not transferred and retained,
91
Hefei Meiling Co., Ltd. Semi-annual Report 2011
derecognition is not made; if nearly all of the risks and rewards related to the ownership of
the financial asset are neither transferred nor retained, then whether derecognition is
conducted is determined according to the involvement of control over such financial asset: if
control over such financial asset is waived, then such financial asset is derecognized; if
control over such financial asset is not waived, then such financial asset is recognized
according to the extent of continuous involvement into such financial asset and relevant
liabilities are confirmed accordingly. If the financial asset is in compliance with the overall
derecognition, the difference between the consideration received upon transfer and the
corresponding book value is included into the current period’s profits and losses and the
accumulated change amount of the fair value of the relevant financial asset originally
recorded into owner’s equity is also transferred into the current period’s profits and losses; if
the transfer of partial financial asset satisfies the conditions to derecognize, the entire book
value of the transferred asset is apportioned between the portion whose recognition has been
stopped and the portion whose recognition has not been stopped according to their respective
relative fair value and the portion involving in partial transfer is accounted as compared to
the overall transfer based on the book value upon apportionment. With respect to those not
satisfying the conditions to derecognize, the consideration received is recognized as a
financial liability.
29. Business Combination
Business combination refers to the event or transaction that the Company combines two or
more separate enterprises as one reporting entity. The Company shall recognize the assets
and liabilities derived from business combination at the combination date or acquisition date.
A combination date or acquisition date is the date on which the Company effectively obtains
control of the company being absorbed.
The assets and liabilities acquired through a business combination involving an enterprise
under common control shall be measured by the acquirer according to the carrying amount
recorded by the acquirer’s at the combination date. The difference between the consideration
of combination and the carrying amount of the acquired net assets shall be included in
capital surplus, or it shall be included in retained earnings continuously if the capital surplus
is not sufficient.
The cost of business combinations not involving an enterprise under common control is the
aggregate of the fair value, at the acquisition date, of the assets given, liabilities incurred or
assumed, and equity securities issued by the Company, in exchange for control of the
acquiree. When the costs of business combinations exceed the acquirer’s identifiable net
assets, the difference shall be recognized as goodwill, if not, the differences shall be included
in the profit or loss in the current period.
30. Measures on Preparation of Consolidated Financial Statements
(1) Recognized principals of consolidated areas
The Company shall put subsidiaries which it controlling totally, main body with special
purpose into consolidated financial statements.
(2) Accounting method for Consolidated Financial Statements:
Consolidated financial statements have been prepared in accordance with the ASBEs No. 33
- Consolidated Financial Statements and relevant supplementary regulations. All significant
transactions and balances between the Company and its subsidiaries are eliminated for the
purpose of consolidation. The equity of subsidiaries not held by the parent company shall be
presented separately as minority shareholders’ equity in consolidated shareholders’ equity.
Any difference arising from the inconformity of accounting year or accounting policies
between the subsidiaries and the Company shall be adjusted in the consolidated financial
statements.
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
When preparing the consolidated financial statements, if the Company acquired the
subsidiary through business combination not involving under common control, the separate
financial statements shall be adjusted based on the fair value of identifiable net assets at the
acquisition date. If the subsidiary is acquired through business combination involving
common control, the consolidated financial statements shall include the carrying amount of
assets, liabilities, operating result and cash flow of the subsidiary at the beginning of the
current period.
V. Changes of accounting policies and accounting estimates and correction of previous
errors
1. Changes of accounting policies and effects: Nil
2. Contents and reasons of changes of accounting estimates: Nil
3. Correction of previous errors and effect: Nil
VI. Taxations
1. Major taxes(expenses) and tax rates
Tax(expenses) Tax base Tax rate
VAT Income from sales of goods and from processing 17%
Business tax Rental income and off-price expense 5%
Urban maintenance and
Turnover tax 5% or 7%
construction tax
Education surcharge Turnover tax 3%
Local education
Turnover tax 2%
surcharge
Corporate income tax Taxable income 15% or25%
Original Book value of house property×(1-30%)or
House Property Tax 1.2% or 12%
annual rent income
Other taxes( tax of land-use, stamp tax, embankment maintenance fee and flood-protection
fee etc.) will pay accordance with local taxation(expenses) rate.
2. Tax preferences and approval documents
Tax preference of enterprise income tax
According to the Notice regarding Announcing the List of the 2nd Batch of High-tech
Enterprises (Ke Gao (2009) No. 13) jointly promulgated by Anhui Science & Technology
Department, Anhui Finance Department, Anhui Provincial Office, SAT, and Local Bureau of
Taxation of Anhui Province, the Company and its controlling subsidiary China-tech Meiling
Freezer Technology Co., Ltd. were recognized as the 2nd batch of high-tech enterprises of
Anhui Province in 2008, and were granted the Certificate of High-tech Enterprise
respectively (issued date: December 5, 2008; certificate No: GR200834000169 and
GR200834000177 respectively with a maturity of three years). The Company and its
controlling subsidiary Zhongke Meiling Cryogenics Co., Ltd. enjoyed the preferential
policies of preferencial enterprise income tax as the State’s high-tech enterpries with 15%
rate of the enterprise income tax.
In addition, the Company’s controlling subsidiary Zhongshan Changhong Apparatus Co., Ltd.
was recognized as one the 1st batch of high-tech enterprises of Guangdong Province in 2008,
and was granted the Certificate of High-tech Enterprise (certificate No.: GR200844000760
93
Hefei Meiling Co., Ltd. Semi-annual Report 2011
with a maturity of three years) and was subject to enterprise income tax at a rate of 15%.
The Company’s controlling subsidiary Sichuan Changhong Air Conditioner Co., Ltd. was
recognized as one the 2nd batch of high-tech enterprises of Sichuan Province in 2010, and
was granted the Certificate of High-tech Enterprise (certificate No.: GR201051000154
with a maturity of three years) and was subject to enterprise income tax at a rate of 15%.
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
VII. Business combination and consolidated financial statements
(I)Subsidiary( major subsidiary of level II and level III)
The balance after the
Amount in parent company’s
minority owner’s equity writing
Balance of State
Bu Registered Holdin interest down the exess of the
Investment other items Voting ments
g Minority used for current loss undertaken
amount at materiallyf right combi
Name egistrati siness capital Business scope propor interest writing by minority shareholders
type year-end orming net proporti ned
on place nature (RMB’0000) tion down of the subsidiary over
(RMB’0000)investment on (%) or not
(%) minority the share enjoyed by
to
gain and minority shareholders in
subsidiary
loss the original owner’s
equity of the subsidiary
Subsidiaries established through direct investment
Research, development, production, sales
Manufa and service of low temperature
Limite
Zhongke Meiling cturing refrigeration equipment and products,
Compa Hefei 6,000.00 4,200.00 - 70.00 70.00 Yes 18,919,949.93 - -
Cryogenics Co., Ltd. (1) and self-operation and agency of import and
ny
sales export business of various commodities
and technologies
Manufa
Jiangxi Meiling Limite R&D, manufacturing and sales of
Jingde cturing
Refrigeration Co., Ltd. Compa 4,000.00 refrigeration appliances, electronic 4,500.00 - 90.00 97.00 Yes 99,532.40 - -
Town and
(2) ny products and fittings
sales
Manufa
Other R&D, manufacturing and sales of
Mianyang Meiling cturing
limited Mianyang 10,000.00 refrigeration appliances, electronic 9,500.00 - 95.00 98.50 Yes -110,756.09 - -
Refrigeration Co., Ltd. (3) and
liability products and fittings
sales
Refrigeration appliances, air conditioners,
washing machines, computer numerically
Limite controlled injection moulding machine,
Hefei Meiling Electric
Compa Hefei sales 5,500.00 computer water heaters, plastic products, 5,490.00 - 99.8182 99.997273 Yes 43,967,286.16 - -
Marketing Co., Ltd. (4)
ny packaging materials and accessories,
electronic products and accessories,
general merchandise sales
Manufa
Jiangxi Meiling Electric limited Jingde cturing R&D, manufacure and sales of refrigerator and
5000.00 1,000.00 - 98.75 99.98125 Yes -17.10
Limited Liability Co., (5) liability Town and its assessory
sales
Subsidiaries obtained through business combination under the same control
95
Hefei Meiling Co., Ltd. Semi-annual Report 2011
R&D, manufacturing, sales and after-sales
Manufa
Sichuan Changhong Limite services of air conditioners and parts,
cturing
Air-conditioners Co., Compa Mianyang 20,000.00 external processing services of spare parts, 30,560.00 - 100.00 100.00Yes - - -
and
Ltd. (6) ny and sales of metal materials (excluding
sales
gold and silver)
Mainly engaged in production, processing,
Manufa
Limite sale of air conditioners, television sets,
Zhongshan Changhong Zhongsha cturing
Compa 8,000.00 laser disc players, audio equipments, 7,625.00 - 90.00 100.00Yes - - -
Electric Co., Ltd. (7) n and
ny computers and spare parts of these
sales
products
Subsidiaries(sub-subsidiary) obtained through business combination under the different control
Manufacture of washing machine, plastic
products, fine welded pipe, cooling fittings,
Limite Holding
Hefei Meiling Group package products and decoration products;
Compa Hefei Compan 8,000.00 11,363.00 - 100.00 100.00Yes - - -
Holding Co., Ltd (8) Self-produced products and raw&auxiliary
ny y
materials, machinery equipment, instrument
and general merchandise sales
Research, manufacture and sales of Roller
washing machine, wave automatically washing
Manufa
Meiling Yingkaite Limite machine, wave double-tube washing machine
cturing
Household Appliance Compa Hefei 2,479.31 and other appliance; Manufacrues and sales of 1,859.49 - 100.00 100.00Yes - - -
and
(Hefei) Co., Ltd. (9) ny the controller and matching line of refrigerator,
sales
washing machine, air-conditioner and other
household appliance
Manufacture and operation on cooling
Manufa appliance, washing machine and plastic
Limite
Hefei Yingkaite Apparatus cturing products; operational of the self-produced
Compa Hefei 1,200.00 867.06 - 100.00 100.00Yes - - -
Co., Ltd. (10) and products on raw&auxiliary materials as well as
ny
sales import&export business( projects limted by the
national excluded)
Manufa
Meiling Non-ferrous Limite
cturing Manufacture and sales various copper tube, line
Metal Products Co., Ltd. Compa Hefei 2,428.68 2,199.64 - 100.00 100.00Yes - - -
and materials and other metal products
(11) ny
sales
Manufa
Limite
Hefei Meiling Precision cturing Manufacture and sales of fine welded pipe and
Compa Hefei 100.00 80.00 - 100.00 100.00Yes - - -
Tube Co., Ltd. (12) and cooling fittings
ny
sales
Manufa
Limite Manufacture and sales of corrugated board,
Hefei Meiling Package cturing
Compa Hefei 1,740.00 paper boxes, paper element, EPS, foam package 952.00 - 48.28 100.00Yes - - -
Products Co., ltd. (13) and
ny materials and aluminum foil sealing tape
sales
96
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Manufacture and sales of belt, EPS, foam
Hefei Meiling Manufa products, PP hollow profile, molded pulp,
Limite
Enviornmet-friendly cturing honeycomb paperboard and materials of
Compa Hefei 80.00 64.00 - 100.00 100.00Yes - - -
Package Materials Co., Ltd. and granulation package( products need for specific
ny
(14) sales approved, should not be operation until
approved)
Hefei Meiling Appliance
Limite Manufacture and sales of household apparatus
Industy&Commer Compa Hefei sales 500.00 (products need for specific approved, should not 300.00 - 100.00 100.00Yes - - -
ce Co., Ltd. (15) ny be operation until approved)
Hefei Maston Appliance Limite
Compa Hefei sales 398.00 R&D, manufacture and sale of refrigerator and 485.97 - 100.00 100.00Yes - - -
Co., Ltd (16) small appliance and other appliance
ny
Note: “Investment amount at year-end” and “holding proportion” listed aboved refers to the amount and shares that directly invested and held by the parent company
of the above said company;”Voting right proportion” refers to the total of proportion hold directly and indirectly by the Company.
97
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(1) Zhongke Meiling Cryogenics Co., Ltd. (hereinafter referred to as Zhongke Meiling Company) was
established on Oct. 29, 2002 by the company and CAS’s Physical & Chemical technology Research, whose
registered capital was RMB60,000,000 including material contribution of RMB 35,573,719.70 which
accounted for 70% of registered capital and cash contribution of RMB 6,426,280.30. CAS’s Physical &
Chemical technology Research made contributions by New mixed throttle refrigeration technology and
technical License of Application research in super low temperature storage box that was appraised RMB
18,000,000 accounting for 30% of registered capital. The actual receviced of the register capital have been
verified by verification report of [Huazheng Yanzi No.(2002) B157] issued by Huazheng CPAs Co., Ltd..
Registration No. of the Business License of Corporation Legal Person: 3401001006416; Legal Representative:
Wang Yong; Address: Meiling Economy Development Zone, Feidong Longgang, Hefei City. Business Scope: R
& D, exploitation, manufacture, sales and service of cryogenic cooling equipment and products; slfe-operating
and agency for the import&export business of various commerce and technology( Commerce and technology
that fobiddent for business or import & export regulated by the Country excluded).
(2) Jiangxi Meiling Refrigeration Co., Ltd. (hereinafter referred to as Jiangxi Meiling Company), a company
jointly set up by the Company and China-tech Meiling Company, was founded on Nov. 6, 2007. Its registered
capital was RMB 20 million upon establishment, of which, the Company invested RMB 18,000,000,
accounting for 90% of the registered capital; while China-tech Meiling Company invested RMB 2,000,000,
accounting for 10% of the registered capital. On Dec. 10, 2008, Jiangxi Meiling Company increased its capital
and shares, after which, its registered capital and paid-in capital were changed to RMB 40 million, including
the cash investment of RMB 45 million from the Company, among which RMB 36 million was input as
registered capital, accounting for 90% of the registered capital, and RMB 9 million was recorded into capital
reserve of Jiangxi Meiling Company; and China-tech Meiling Company invested cash RMB 5 million, among
which RMB 4 million was input as registered capital, accounting for 10% of the registered capital and RMB 1
million was recorded into capital reserve of Jiangxi Meiling Company. The procedures for registration of its
change in registered capital in the Industry and Commerce Administration Bureau were completed in 2008.
The above mentioned capital-increased have been verified by [Gangjingde Yanzi No.(2008) 354] issued by
Jiangxi Jingde CPAs Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 360200110000441; Address: No.558
Cidu Road, Jingde Town City; Legal Representative: Li Daijiang; Business Scope: R & D, manufacture and
sales of cooling apparatus, electronic products and other fittings.
(3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling Company), a
limited liability company jointly set up by the Company and China-tech Meiling Company, was founded on
Mar. 6, 2009. Its registered capital and paid-in capital was RMB 50 million upon establishment, of which, the
Company invested RMB 45 million, accounting for 90% of the registered capital; Zhongke Meiling Company
invested RMB 5 million, accounting for 10% of the registered capital. The capital receipt was verified by the
verification report [CXKY (2009) No. 008] of Sichuan Xingrui Certified Public Accountants. On January 19,
2011, the Company increase capital to Mianyang Meiling with RMB 50 million. The real capital receival has
been verified by the Chengdu Branch of ShineWing CPA Co., Ltd. With the verification report of
［XYZH/2010CDA6040］. At precent, Mianyang Meiling owes its register capital and real capital of 100
million yuan. Among which: RMB 95 million was invested by the Company, a 95% of the register capital;
RMB 5 million was invested by Zhongke Meiling, 5 % of the register capital.
Registration No. of the Business License of Corporation Legal Person: 510706000014939; Address: No.35
Mianxing Easet Road, Gaoxin Distict, Mianyang City, Sichuan Province; Legal Representative: Li Daijiang;
Business Scope: R & D, manufacture and sales of cooling apparatus, electronic products and other fittings.
(4) Hefei Meiling Electric Marketing Co., Ltd. (hereinafter referred to as Meiling Marketing Company), a
limited liability company jointly set up by the Company and Mianyang Meiling Company, was founded on Oct.
21, 2009. Its registered capital and paid-in capital was RMB 10 million upon establishment, of which, the
Company invested RMB 9.90 million, accounting for 99% of the registered capital, and Mianyang Meiling
Company invested RMB 0.10 million, accounting for 1% of the registered capital. The registered capital
receipt was verified by the verification report [WALXDYZ (2009) No. 074] of Anhui Anlian Xinda Certified
Public Accountants Co., Ltd. On November 25, 2010, RMB 45 million increased by the Japan Company, the
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Hefei Meiling Co., Ltd. Semi-annual Report 2011
register capital came to RMB 55 million. Among which, RMB 54.9 million from the Company, account
99.82% of the register capital while RMB0.1 million from Mianyang Meiling, account 0.18% of the register
capital. The above mentioned capital-increased have been verified by [Wanhuashen Zhengdakuai Yanzi
No.(2010) 1514] issued by Anhui Huashen Zhengda CPAs Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340107000030092; Address: Woyun
Road North, Lianhua Road East, Economy and Technology Development Zone, Hefei ; Legal Representative:
Wang Yong; Business Scope: Refrigeration appliances, air conditioners, washing machines, computer
numerically controlled injection moulding machine, computer water heaters, plastic products, packaging
materials and accessories, electronic products and accessories, general merchandise sales
(5) Jiangxi Meiling Electric Limited Liability Co., (“Jiangxi Meiling Electric”) a company jointly set up by the
Company and Mianyang Meiling Company, was founded on May 23, 2011. The company plans with its
investment capital of RMB 80 million, RMB79 million was invested by the Company while 1 million yuan was
invested by Mianyang Meiling. Register capital of Jiangxi Meiling Electric was amounting to 50 million yuan,
among which: 49.375 million yuan was capital from the Company in cash, a 98.75% of the equity proportion
for jointly venture; Mianyang Meiling invested 0.625 million yuan, a 1.25% of the equity proportion. The 30
million yuan, which was over the register capital, was reckoned into capital reserve. Pursuit to the regulation of
Company Law, the initial investment for all of the shareholders shall not be less than the 20 percent of the
register capital. On May 13 of 2011, the initial investment of 10 million yuan was invested by the Company,
Mianyang Meiling invested 0.5 million yuan initially on May 12 of 2011. Rest of the capital shall be invested
fully within 2 years after the joint ventures established according to capital requirement. The initial investment
capital were verified by the [JXKYZi(2011) No. 090] issued from Jingdezhen Xingci CPA Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 360200110004455; Address: South part
of Wutong Revenue, High-Tech Industial Development District, Jingdezhen; Legal Representative: Wang Yong;
Business Scope: R&D, manufacturing and sales of refrigerator and its assesories.
(6) Sichuan Changhong Air-conditioners Co., Ltd.(Changhong Air-conditioner for short), a limited liability
company jointly set up by Sichuan Changhong and Changhong Chuangtou, was founded on November 28,
2008. Its registered capital was RMB 200 million upon establishment, of which, Sichuan Changhong invested
RMB 298 million(RMB 210,088,900 invested by monetary capital while RMB 87,911,100 invested by real
materla), equivalent to RMB 198 million shares, accounting for 99% of the registered capital; and Changhong
Chuangtou invested RMB 3 million, accounting for 1% of the registered capital with equivalent of RMB 2
million shares. The registered capital receipt was verified by the verification report [CGYYZ (2008) No. 177]
of Sichuan Guangyuan Certified Public Accountants Co., Ltd. and [HLTHYZ(2008) No. 12-006] of Sichuan
Henglitai Certified Public Accountants Co., Ltd. In December 2009, the Company obtained 100% equity of
Changhong Air-conditioner by consolidated under the same control.
Registration No. of the Business License of Corporation Legal Person: 510706000013788; Address: No.35,
Mianxing East Road, Gaoxin District, Mianyang City; Legal Representative: Wang Yong; Business Scope:
R&D, manufacturing, sales and after-sales services of air conditioners and parts, external processing services of
spare parts, and sales of metal materials (excluding gold and silver)
(7) Zhongshan Changhong Electric Co., Ltd.( Zhongshan Changhong for short), was the original Guangdong
Changhong Electric Co., Ltd., and is a limited liability company jointly set up by Sichuan Changhong and
China Minmetals on May 22, 2001. Its registered capital was RMB 80 million upon establishment, of which,
Sichuan Changhong invested RMB 72 million, including RMB 69.3 million biding for the estate/ non-estate
from original Zhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of RMB2.7 million,
accounting for 90% of the registered capital; Chine Minmetals invested RMB 8 million in monerary capital
accounting 10% of the registered capital. The Company changed its name originally from Guangdong
Changhong Electric Co., Ltd in July 2003. In December 2009, the Company obtained 90% equity of Zhongshan
Changhong by consolidated under same control. 10% equity held by China Minmetals have been transferred by
Changhong Air-conditioner on April 11, 2010.
Registration No. of the Business License of Corporation Legal Person: 442000000290879; Address: Central
Nantou Avenue, Nantou Town, Zhongshan City; Legal Representative: Li Jin; Business Scope: Mainly engaged
in production, processing, sale of air conditioners, television sets, laser disc players, audio equipments,
99
Hefei Meiling Co., Ltd. Semi-annual Report 2011
computers and spare parts of these products
(8) Hefei Meiling Group Holding Co., Ltd(Meiling Group for short), was the state-owned company originally approved
by People’s Government of Hefei Province and established authorized by SASAC of Hefei City. On July 14, 2008,
100% state-owned equity of Meiling Group have freely transferred to Xingtai Holding by Hefei SASAC.
Agreement by the approval of < State-owned property agreement transfer from Meiling Group>
[ HGZCQ(2010) No.34] of Hefei SASAC on April 9, 2010, 100% state-owned property of Meiling Group after
partial assets and liabilities separated transferred to the Company from Xingtai Holding as amount of RMB
113.2 million. The re-registration of industrial and commercial procedure for Meiling Group after separated
partial assets liability have finished on July 28, 2010. The new Meiling Group has register capital of RMB 80
million, and have been verified by the [AD(2010)YZD No. 016] from Anhui Anding CPAs Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340100000010841; Address: Main plant
of 2# South, Tangkou Road, Lianhua Road East, Economy&Technology Development Zone, Hefei; Legal
Representative: Wang Jiazhang; Business Scope: Manufacture of washing machine, plastic products, fine welded
pipe, cooling fittings, package products and decoration products; Self-produced products and raw&auxiliary materials,
machinery equipment, instrument and department sales.
(9) Meiling Yingkaite Appliance (Hefei) Co., Ltd.( Yingkaite Appliance for short) was the sino-foreign joint venture
jointly set up by original Meiling Group and EQUATOR INVESTMENTS (USA) INC.( EQUATOR for short),
which have been approved by the [SWZWFZZ(2004) No.0103] of Approval Certificate of Foreign Enterprise
from People’s Government of Anhui Province. Its registered capital was US$ 3 million upon establishment, of
which, sino company invested US$ 2.25 million in machinery equipement, accounting 75% of the registered
capital while foreign company invested US$ 0.5 million in monetary capital and US$ 0.25 million in intangible
assets, amounting to US$0.75 million, accounting 25% of the registered capital. The above mentioned
investment verified by the verification report of [WYAYZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
In July 2007, approved by [HWJ(2007) No.136] from Foreign Trade Economic Cooperation Bureau of Hefei
City, 25% equity held by EQUATOR transferred to Anhui Meiling Electric Co., Ltd. Totally. The Company’s
register capital came into RMB 24,793,200 after transference, and was not the joint-venture any more. 25%
euiqty owned by Anhui Meiling Electric Co., Ltd have been transferred totally to original Meiling Group in
July 2009.
Registration No. of the Business License of Corporation Legal Person: 340100000004040; Address: Meiling
Industry Zone, Development Zone, Feidong Xinchang, Hefei City; Legal Representative: Wang Yong; Business
Scope: Research, manufacture and sales of Roller washing machine, wave automatically washing machine, wave
double-tube washing machine and other appliance; Manufacrues and sales of the controller and matching line of
refrigerator, washing machine, air-conditioner and other household appliance
(10) Hefei Yingkaite Apparatus Co., Ltd.( Yingkaite Apparatus for short) was jointly set up by original Meiling Group
and Yingkaite Appliance on September 26, 2007. It’s regiater capital was RMB 12 million, among which, original
Meiling Group invested RMB 8,670,600 in monetary capital, accounting 72.255% in registered capital;
Yingkaite Appliance invested RMB 3,329,400 in the assessment value of intangible assets(land-use right),
accounting 27.745% of total registered capital. The investment being verified by [WYAZ(2004) No. 135] from
Anhui Yongan CPAs Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340122000001532; Address: (No.15
Jinyang Road) Meiling Industrial Zone, Development Zone, Feidong Xinchang, Hefei City; Legal
Representative: Liu Shiqun; Business Scope: Manufacture and operation on cooling appliance, washing machine and
plastic products; operational of the self-produced products on raw&auxiliary materials as well as import&export
business( projects limted by the national excluded)
(11) Meiling Non-ferrous Metal Products Co., Ltd. ( Non-ferrous Metal for short) was the sino-foreign joint venture
jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And Singapore Kim Shin Development Co.,
Ltd., which have been originally approved by the [WJMWFZZ(1996) No.349] of Foreign Trade and Economic
Committee of Anhui Province. Its registered capital was US$ 2.92 million upon establishment, of which,
original Meiling Group invested US$ 1.46 million( monetary capital), accounting 50% of the registered capital,
Hefei Meiling Copper Co., Ltd invested US$ 0.584 million (monetary capital of RMB 0.18 million and real assets of
US$ 0.404 million), accounting 20% of registered capital while Singapore Kim Shin Development Co., Ltd invested
100
Hefei Meiling Co., Ltd. Semi-annual Report 2011
US$ 0.876 million(monetary capital), accounting 30% of the registered capital. The above mentioned
investment verified by the verification report of [HSWZ(1995) No. 0737], [HSWZ(1996) No. 328] and
[HSWZ(1998) No. 088] from Anhui CPAs Co., Ltd. In July 2008, approved by [HWS(2008) No.53] from
Foreign Trade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity held by Singapore Kim
Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to original Meiling Group
Totally. The Company’s register capital came into RMB 24,286,808.00 after transference, and was not the
joint-venture any more.
Registration No. of the Business License of Corporation Legal Person: 340100000111925; Address: Meiling
Industrial Zone, Changjiang East Road,Hefei City; Legal Representative: Huang Danian; Business Scope:
Manufacture and sales various copper tube, line materials and other metal products
(12) Hefei Meiling Precision Tube Co., Ltd. (Precision Tube for short) was set up in March 2004 with RMB 1 million
register capial. Among which, the original Meiling Group invested RMB0.8 million in monetary capial
accounting 80% of register vcapital while Anhui Meiling Electric Co., Ltd. Invested RMB 0.2 million in
monetary capial accounting 20% of register capital. The investment being verified by [WYAYZ(2004) No. 041]
from Anhui Yongan CPAs Co., Ltd. 20% euiqty owned by Meiling Electric have been transferred totally to
original Meiling Group on August 20, 2009.
Registration No. of the Business License of Corporation Legal Person: 340122000010759; Address: Meiling
Industry Zone, Development Zone, Feidong Xinchang, Hefei City; Legal Representative: Zhao Yong; Business
Scope: Manufacture and sales of fine welded pipe and cooling fittings
(13) Hefei Meiling Package Products Co., ltd(Package Products for short) was the sino-foreign joint venture jointly set up
by Hefei Paper Box Plant, original Meiling Group and Singapore Anda Development Co., Ltd in December 1993, which
approved by [HWJZ(1993) No. 0444] of Foreign Trade and Economic Committee of Hefei City with its register
capital of US$ 3.067 million. The register capital while established have been verified by [HKHY(1995) No. 5]
from original Hefei CPAs Co., Ltd. On December 30, 2002, being approved by [HWJ(2002) No. 259] of
foreign trade Economic Cooperation Bureau of Hefei City, 48.28% equity owned by Hefei Paper Box Plant
transferred to the Company. On June 17, 2005, 25% equity owned by Singapore Anda Development Co., Ltd
transferred to original Meiling Group freely by one-time. The Company turned into domestic-capital enterprice from
foreign-capital enterprise with changed registered capital of RMB 18.4 million. The re-register of register capital
being verified by [WCQYZ(2005) No. 256] from Anhui CHengqin CPAs Co., Ltd. After equity transferred, the
Company invested RMB 8.88 million accounting 48.28% in register capital while Meiling Group invested
RMB9.52 million with 51.72% in register capital. Being approved by 46th Meeting of 6th Session of the Board,
while purchase the Meiling Group, the assets and liabilities of Hefei Meiling Packaging Products Co., Ltd., that
out of the transfer range was conducting derivative separation—Hefei Xingmei Assets Management Co., Ltd.
The register capital of original Meiling Packaging Company reduced to 17.4 million yuan. The changes of
registration for industrial and commerce have been done on June 27, 2011.
Registration No. of the Business License of Corporation Legal Person: 3401001007135; Address: Meiling
Industry Zone,Dong twenty bu, Hefei City; Legal Representative: Huang Danian; Business Scope: Manufacture
and sales of corrugated board, paper boxes, paper element, EPS, foam package materials and aluminum foil sealing tape
(14) Hefei Meiling Enviornmet-friendly Package Materials Co., Ltd. (Enviornmet-friendly Packageforshort) was set up
on May 11, 2005 with register capital of RMB 0.8 million. The original Meiling Group invested RMB 0.64 million,
accounting 80% of register capital. RMB 0.16 million was invested by Hefei meiling Economy Development
Co., Ltd. As monetary capital, accounting 20% of register capital. Hefei meiling Economy Development Co.,
Ltd. Transferred its 20% equity to original Meiling Group on July 20, 2009.
Registration No. of the Business License of Corporation Legal Person: 340122000010381; Address: Meiling
Industry Zone,Dong twenty bu, Hefei City; Legal Representative: Sun Qingfeng; Manufacture and sales of belt,
EPS, foam products, PP hollow profile, molded pulp, honeycomb paperboard and materials of granulation
package( products need for specific approved, should not be operation until approved)
(15) Hefei Meiling Appliance Industy&Commerce Co., Ltd. (Appliance Industy&Commerce for shott)was set up on
June 17, 2003 with register capital of RMB 2 million. Among which, original Meiling Group invested RMB 1.2 million
in monetary capital, accounting 60% of register capital; Hefei Meiling Grant Hotel invested 0.6 million in monetary
capital, accounting 30% of register capital and Hefei Meiling Washing Machine Co., Ltd. Invested RMB 0.2 million in
101
Hefei Meiling Co., Ltd. Semi-annual Report 2011
monetary capital, accounting 10% of register capital. The investment being verified by [WDHYZ(2003) No. 1117] of
Anhui Ludong CPAs Co., Ltd. On April 8, 2005, the original shareholder increased RMB 3 million( including
RMB 857,823 monetary capital and RMB 2,142,177 unditribution profit) in the company. The investment
proportion remain the same as usual. The capital increasement verified by [WDHYZ(2005) No. 1095] of Anhui
Ludong CPAs Co., Ltd. On September 23, 2008, 30% equity and 10% equity owned by Hefei Meiling Grant
Hotel and Hefei Meiling Washing Machine Co., Ltd respectively transferred to original Meiling Group in total.
Registration No. of the Business License of Corporation Legal Person: 340122000001039; Address: Feidong
Xincheng Development Zone, Hefei City; Legal Representative: Jiang Chanzhi; Business scope: Manufacture
and sales of household apparatus (products need for specific approved, should not be operation until approved)
(16) Hefei Maston Appliance Co., Ltd (Maston for short) was set up in November 2004 with registercapital of
RMB 3 million. Among which, original Meiling Group invested RMb 0.7 million with 23.33% equity held. Liu
Shikun(individual person) invested 0.94 million with 31.33% equity held while Li Xunzhu (individual person)
invested RMB 1.36 million with 45.34% equity held. The investment being verified by [WDHYZ(2005) No. 1063]
of Anhui Ludong CPAs Co., Ltd. The increased register capital of RMB 0.98 million on December 31, 2006.
Among which, original Meiling Group increased RMB 0.25 million, Liu Shikun increased RMB 0.22 million
while Li Xunzhu increased RMB0.51 million. The register capital after increasing will be RMB 3.98 million.
On July 29, 2009, 29.15% and 46.98% equity owned by Liu Shikun and Li Xunzhu respectively transferred to
original Meiling Group.
Registration No. of the Business License of Corporation Legal Person: 340106000034030; Address: No.669,
Changjiang West Road, Hefei City; Legal Representative: Jiang Chanzhi; Business scope: R&D, manufacture
and sale of refrigerator and small appliance and other appliance
(II) Special purpose entities or the operating entities with controlling rights formed through entrusted operations
or leases: Nil
(III) Changes in the consolidation scope of the consolidated financial statements of the year
1. The companies newly consolidated during the year
Holding
Net assets at Net profit of the
Name Reason proportio
year-end year
n (%)
Subsidiary newly consolidated in this period
Jiangxi Meiling Electric Limited Liability Newly company set up
10,408,821.97 -91,178.03
Co.,Note1 in the period
Sub-subsidiary newly consolidated in the period
Nanchang Meiling Apparatus Marketing 2nd Joint venture subsidiary 36.00%
3,125,268.15 125,268.15
Co.,Ltd.Note 2 newly set-up
Jinzhou Meiling Apparatus Marketing 2nd Joint venture subsidiary 60.00%
3,940,423.29 -59,576.71
Co.,Ltd Note 3
newly set-up
Liu An Meiling Apparatus Marketing nd
2 Joint venture subsidiary 36.00%
Co.,Ltd Note 4 1,005,664.30 -3,994,335.70
newly set-up
Wuhan Meiling Apparatus Marketing 2nd Joint venture subsidiary 91.00%
Co.,Ltd Note 5 4,258,047.22 -741,952.78
newly set-up
Shijiazhuang Meiling Apparatus Marketing 2nd Joint venture subsidiary 36.00%
Co.,Ltd Note 6 2,808,838.88 -191,161.12
newly set-up
102
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Zhenzhou Meiling Apparatus Marketing 2nd Joint venture subsidiary 36.00%
2,789,007.41 -210,992.59
Co.,Ltd Note 7
newly set-up
Hefei Meiling White Apparatus Marketing nd
2 Joint venture subsidiary 85.00%
Co.,Ltd Note 8 5,100,960.26 -899,039.74
newly set-up
Guiyang Meiling Apparatus Marketing 2nd Joint venture subsidiary 26.00%
Co.,Ltd Note 9 2,279,878.14 -720,121.86
newly set-up
Fuzhou Meiling Apparatus Marketing 2nd Joint venture subsidiary 99.00%
Co.,Ltd Note 10 1,432,353.87 -1,567,646.13
newly set-up
Shenyang Meiling Apparatus Marketing nd
2 Joint venture subsidiary 94.80%
Co.,Ltd Note 11 2,144,671.53 -855,328.47
newly set-up
Chemhdu Meiling Apparatus Marketing nd
2 Joint venture subsidiary 83.40%
Co.,Ltd Note 12 3,337,663.66 -1,662,336.34
newly set-up
Mianyang Meiling Apparatus Marketing nd
2 Joint venture subsidiary 52.00%
Co.,Ltd Note 13 4,972,517.63 -27,482.37
newly set-up
Nanjing Meiling Apparatus Marketing nd
2 Joint venture subsidiary 99.00%
Co.,Ltd Note 14 1,444,479.27 -1,555,520.73
newly set-up
Changsha Meiling Apparatus Marketing nd
2 Joint venture subsidiary 36.00%
Co.,Ltd Note 15 4,262,181.09 -737,818.91
newly set-up
Taiyuan Meiling Apparatus Marketing 2nd Joint venture subsidiary 39.75%
3,212,816.35 -787,183.65
Co.,Ltd Note 16
newly set-up
Nantong Meiling Apparatus Marketing
2nd Joint venture subsidiary 58.00%
Co.,Ltd Note 17 2,763,276.58 -236,723.42
newly set-up
Urumqi Meiling Apparatus Marketing nd
2 Joint venture subsidiary 90.00%
Co.,Ltd Note 18 2,671,414.37 -328,585.63
newly set-up
Hanzhou Meiling Apparatus Marketing nd
2 Joint venture subsidiary 88.50%
Co.,Ltd Note 19 2,226,505.54 -773,494.46
newly set-up
Harbin Meiling Apparatus Marketing 2nd Joint venture subsidiary 36.00%
2,652,373.22 -347,626.78
Co.,Ltd Note 20
l
Chaohu Meiling Apparatus Marketing nd 50.00%
2 Joint venture subsidiary
Co.,Ltd Note 21 5,767,185.99 618,850.84
newly set-up
Huhhot Meiling Apparatus Marketing nd 55.00%
2 Joint venture subsidiary
Co.,Ltd Note 22 2,248,771.37 -751,228.63
newly set-up
103
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Lanzhou Meiling Apparatus Marketing 2nd Joint venture subsidiary 40.55%
3,049,182.97 49,182.97
Co.,Ltd Note 23
newly set-up
Neijiang Meiling Apparatus Marketing nd 80.00%
2 Joint venture subsidiary
Co.,Ltd Note 24 2,997,108.58 -2,891.42
newly set-up
Beijing Meiling Apparatus Marketing 2nd Joint venture subsidiary 99.00%
3,002,726.53 2,726.53
Co.,Ltd Note 25
newly set-up
Xi’an Meiling Apparatus Marketing Co.,Ltd 61.00%
2nd Joint venture subsidiary
Note 26 3,004,800.53 4,800.53
newly set-up
Chongqing Meiling Apparatus Marketing 2nd Joint venture subsidiary 85.00%
619,699.64 -2,380,300.36
Co.,Ltd Note 27
newly set-up
Shanghai Meiling Apparatus Marketing 2nd Joint venture subsidiary 99.00%
Co.,Ltd Note 28 1,174,438.59 -1,825,561.41
newly set-up
Tianjin Meiling Apparatus Marketing 2nd Joint venture subsidiary 85.50%
2,942,204.56 -57,795.44
Co.,Ltd Note 29
newly set-up
Guangzhou Meiling Apparatus Marketing 2nd Joint venture subsidiary 86.00%
Co.,Ltd Note 30 5,006,307.31 6,307.31
newly set-up
Kunming Meiling Apparatus Marketing nd
2 Joint venture subsidiary 46.50%
Co.,Ltd Note 31 2,610,608.65 -389,391.35
newly set-up
Jinan Meiling Apparatus Marketing Co.,Ltd
2nd Joint venture subsidiary 36.00%
Note 32
3,000,000.00 -
newly set-up
Note1: Jiangxi Meiling Electric Limited Liability Co. was established on May 23, 2011 with investment capital of RMB 80
million, register capital of RMB 50 million. Among which, the Company invested RMB49.375 million in cash with
98.75% in total equity of the joint venture; Mianyang Meiling invested RMB 0.625 million in cash with 1.25%
in total equity of the joint venture. The exceeding capital from shareholders’ investment was reckoned into
capital reserve of RMB 30 million.
Note2:Nanchang Meiling Apparatus Marketing Co.,Ltd was established on January 5, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB1.08 million with 36% in total register capital. Nature
of the enterprise was private Limited Liability Company; Address for business: No. 192, High-Tech Rd.,
High-Tec Distric, Nanchang; Legal representative: Zhu Pu; Business scope: whole sales, maintenance and
retails of household appliance.
Note3: Jinzhou Meiling Apparatus Marketing Co.,Ltd was established on January 10, 2011 with register capital of RMB 4
million. Among which, Meiling Marketing invested RMB 2.4 million with 60% in total register capital; nature of
the enterprise was Limited Liability Company; Address for business: Economy 3rd Rd. Management Committee
Building, Liu An Economy Development Zone District; Legal representative: Cui Lianbin; Business scope:
sales and maintainance of the household appliance.
Note4: Liu’an Meiling Apparatus Marketing Co.,Ltd was established on January 10, 2011 with register capital of RMB 5 million.
Among which, Meiling Marketing invested RMB 1.8 million with 36% in total register capital; nature of the
enterprise was Limited Liability Company; Address for business: No.302, Yujan Cell, Yujia Team, Jiangdong
Village, Zhuhui District, Hengyang City; Legal representative: Zhu Pu; Business scope: sales and maintainance
of the household appliance.
Note5: Wuhan Meiling Apparatus Marketing Co.,Ltd was established on January 10, 2011 with register capital of RMB 5
million. Among which, Meiling Marketing invested RMB4.55 million with 91% in total register capital; nature
104
Hefei Meiling Co., Ltd. Semi-annual Report 2011
of the enterprise was Limited Liability Company; Address for business: 15/F, Taihe Square, No.72, Wusheng
Rd., Qiaokou District, Wuhan City; Legal representative: Zhu Pu; Business scope: sales of the cooling
appliance, air conditioner, washing machine, electronic products and its accessories and department.
Note6: Shijiazhuang Meiling Apparatus Marketing Co.,Ltd was established on January 14, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB1.08 million with 36% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: No.669, Chengjiao South Street, Qiaoxi
District, Shijiazhuang City; Legal representative: Tang Yiliang; Business scope: sales and maintainance of the
household appliance.
Note7: Zhenzhou Meiling Apparatus Marketing Co.,Ltd was established on January 17, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 1.08 million with 36% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: No.15, 5/F, No.18, Chengdong Rd. East,
Guangcheng District, Zhenzhou City; Legal representative: Guo Gang; Business scope: sales and maintainance
of the household appliance.
Note8: Hefei Meiling White Apparatus Marketing Co.,Ltd was established on January 17, 2011 with register capital of RMB 6
million. Among which, Meiling Marketing invested RMB 5.1 million with 85% in total register capital; nature of
the enterprise was Limited Liability Company; Address for business: A-201, Huayi Science Zone, High-Tech
Distric, Hefei City; Legal representative: Qin Tangzong; Business scope: sales and maintainance of the
household appliance.
Note9: Guiyang Meiling Apparatus Marketing Co.,Ltd was established on January 24, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 0.78 million with 26% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: No. 16-3, Pubu Mansion, No.19,
Yan’an Xi Rd., Yunyan District, Guiyang City; Legal representative: Fang Rongxin; Business scope: sales and
maintainance of the household appliance.
Note10: Fuzhou Meiling Apparatus Marketing Co.,Ltd was established on January 25, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.97 million with 99% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: 05 of 22/F, Jin’an Mansion,Jinyuan
Garden, No.328, Liuyi North Rd., Ji’an District, Fuzhou City; Legal representative: Zhu Pu; Business scope:
sales and maintainance of the household appliance.
Note11: Shenyang Meiling Apparatus Marketing Co.,Ltd was established on January 26, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.844 million with 94.8% in total register capital;
nature of the enterprise was Limited Liability Company; Address for business: No.30, Renao Rd., Shenhe
District, Shenyang City; Legal representative: Tang Yiliang; Business scope: sales and maintainance of the
household appliance.
Note12: Chengdu Meiling Apparatus Marketing Co.,Ltd was established on January 26, 2011 with register capital of RMB 5
million. Among which, Meiling Marketing invested RMB 4.17 million with 83.4% in total register capital;
nature of the enterprise was Limited Liability Company; Address for business: No.22, Shuangfengxi Rd.,
Wuhou District, Chengdu City; Legal representative: Fang Rongxin; Business scope: sales and maintainance of
the household appliance.
Note13: Mianyang Meiling Apparatus Marketing Co.,Ltd was established on January 27, 2011 with register capital of RMB 5
million. Among which, Meiling Marketing invested RMB 2.6 million with 52% in total register capital; nature of
the enterprise was Limited Liability Company; Address for business: Commercial Square, Mianyang Gaoxin
District; Legal representative: Fang Rongxin; Business scope: sales and maintainance of the household
appliance.
Note14: Nanjing Meiling Apparatus Marketing Co.,Ltd was established on Feburary 14, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.97 million with 99% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: 14/F, Dongheng International
Commercial Building, No.288, Zhongshan South Rd., Baixia District, Nanjing City; Legal representative: Qin
Tangzong; Business scope: sales and maintainance of the household appliance.
Note15: Changsha Meiling Apparatus Marketing Co.,Ltd was established on January 26, 2011 with register capital of RMB 5
million. Among which, Meiling Marketing invested RMB 1.8 million with 36% in total register capital; nature of
the enterprise was Limited Liability Company; Address for business: Room 301, Oriental Ginza, No.348,
105
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Yuandayi Rd., Fu Rong District, Changsha City; Legal representative: Zhu Pu; Business scope: sales and
maintainance of the household appliance.
Note16: Taiyuan Meiling Apparatus Marketing Co.,Ltd was established on January 18, 2011 with register capital of RMB 4
million. Among which, Meiling Marketing invested RMB 1.59 million with 39.75% in total register capital;
nature of the enterprise was Limited Liability Company; Address for business: 6/F, Hangyuan Mansion,
Qinxian North Street, Xiao Dian District, Taiyuan City; Legal representative: Tang Yiliang; Business scope:
sales and maintainance of the household appliance.
Note17: Nantong Meiling Apparatus Marketing Co.,Ltd was established on March 8, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 1.74 million with 58% in total register capital; nature
of the enterprise was Limited Company; Address for business: Room 2207, 1st Building, Wangfu Mansion,
No.6, Renmin East Rd., Nantong City; Legal representative: Zhou Wenhui; Business scope: sales and
maintainance of the household appliance.
Note18: Urumqi Meiling Apparatus Marketing Co.,Ltd was established on March 4, 2011 with register capital of RMB 3 million.
Among which, Meiling Marketing invested RMB 2.7 million with 90% in total register capital; nature of the
enterprise was Limited Liability Company; Address for business: Room 505, Ginza Center, No.196, Tianjin
South Rd., Urumqi City; Legal representative: Fang Rongxin; Business scope: sales and maintainance of the
household appliance.
Note19: Hanzhou Meiling Apparatus Marketing Co.,Ltd was established on Febuary 17, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.655 million with 88.5% in total register capital;
nature of the enterprise was Limited Liability Company; Address for business: Room 609, 1st Building, Nanbei
Commercial Lane., Gong Su District; Legal representative: Zhou Wenhui; Business scope: sales and maintainance
of the household appliance.
Note20: Harbin Meiling Apparatus Marketing Co.,Ltd was established on April 6, 2011 with register capital of RMB 3 million.
Among which, Meiling Marketing invested RMB 1.08 million with 36% in total register capital; nature of the
enterprise was Limited Liability Company; Address for business: No.4, Hengshan Rd., Nangang Jizhong
District, Economy Development Zone, Harbin City; Legal representative: Tang Yiliang; Business scope: sales
and maintainance of the household appliance.
Note21: Chaohu Meiling Apparatus Marketing Co.,Ltd was established on Dec. 1, 2009 with register capital of RMB 5 million.
Among which, Meiling Marketing invested RMB 2.5 million with 50% in total register capital; nature of the
enterprise was Limited Liability Company; Address for business: No.107, No.56 Building, Lijing International
Cell, Jiangkang West Rd., Chaohu City; Legal representative: Cui Lianbin; Business scope: sales and
maintainance of the household appliance.
Note22: Huhhot Meiling Apparatus Marketing Co.,Ltd was established on Feb. 21, 2011 with register capital of RMB 3 million.
Among which, Meiling Marketing invested RMB 1.65 million with 55% in total register capital; nature of the
enterprise was Limited Liability Company; Address for business: No.518, 4/F, Jiangjun Gardent
Comprehensive Building, No.139, Dongku St., Xin Cheng District, Huhhot City; Legal representative: Tang
Yiliang; Business scope: sales and maintainance of the household appliance.
Note23: Lanzhou Meiling Apparatus Marketing Co.,Ltd was established on March 25, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 1.215 million with 40.55% in total register capital;
nature of the enterprise was Limited Liability Company; Address for business: No.134, Jiayuguan West Rd.,
Cheng Guan District, Lanzhou City; Legal representative: Fang Rongxin; Business scope: sales and maintainance
of the household appliance.
Note24: Neijiang Meiling Apparatus Marketing Co.,Ltd was established on March 8, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.4 million with 80% in total register capital; nature of
the enterprise was Limited Liability Company; Address for business: Middle layer, No.386, Yuxi Rd., Zhongxin
District,Neijiang City; Legal representative: Fang Rongxin; Business scope: sales and maintainance of the
household appliance.
Note25: Beijing Meiling Apparatus Marketing Co.,Ltd was established on March 28, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.97 million with 99% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: Middle layer, No.23, Xinhua West St.,
Majuqiao Town, Tongzhou District, Beijing City; Legal representative: Qin Tangzong; Business scope: sales and
106
Hefei Meiling Co., Ltd. Semi-annual Report 2011
maintainance of the household appliance.
Note26: Xi’an Meiling Apparatus Marketing Co.,Ltd was established on April 13, 2011 with register capital of RMB 3 million.
Among which, Meiling Marketing invested RMB 1.83 million with 61% in total register capital; nature of the
enterprise was Limited Liability Company; Address for business: No.10715, Unit one, 12# Building, Xinxing
Junjing Garden, No.369, Jinghua Rd., Xincheng District, Xi’an City; Legal representative: Fang Rongxin;
Business scope: sales and maintainance of the household appliance.
Note27: Chongqing Meiling Apparatus Marketing Co.,Ltd was established on March 1, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.55 million with 85% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: No.105, 106 and 111, Dayang
Gongqiao, Shapingba District, Chongqing City; Legal representative: Fang Rongxin; Business scope: sales and
maintainance of the household appliance.
Note28: Shanghai Meiling Apparatus Marketing Co.,Ltd was established on March 9, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.97 million with 99% in total register capital; nature
of the enterprise was Limited Liability Company; Address for business: Room 201-9, No.15 A, 152 Lane,
Yangchang Rd.,; Legal representative:; Business scope: sales and maintainance of the household appliance.
Note29: Tianjing Meiling Apparatus Marketing Co.,Ltd was established on March 2, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 2.565 million with 85.5% in total register capital;
nature of the enterprise was Limited Liability Company; Address for business: 3001-96, Economy
Development Center, No. 9, Junling Rd., Electronic Industy Zone, Beizakou, Jinnan District; Legal
representative: Tang Yiliang; Business scope: sales and maintainance of the household appliance.
Note30: Guangzhou Meiling Apparatus Marketing Co.,Ltd was established on May 13, 2011 with register capital of RMB 5
million. Among which, Meiling Marketing invested RMB 4.3 million with 86% in total register capital; nature of
the enterprise was Limited Liability Company; Address for business: 2/F, No. 98, Tangxin St., Dongheng
Rd.,Baiyun District, Guangzhou City; Legal representative: Zhu Pu; Business scope: whole sales and
maintainance of the household appliance.
Note31: Kunming Meiling Apparatus Marketing Co.,Ltd was established on Feb. 28, 2011 with register capital of RMB 3
million. Among which, Meiling Marketing invested RMB 1.395 million with 46.5% in total register capital;
nature of the enterprise was Limited Liability Company; Address for business: 6/F, No. 13, Longquan Rd.,
Kunming City; Legal representative: Fang Rongxin; Business scope: sales and maintainance of the household
appliance.
Note32: Jinan Meiling Apparatus Marketing Co.,Ltd was established on June 3, 2011 with register capital of RMB 3 million.
Among which, Meiling Marketing invested RMB 1.08 million with 36% in total register capital; nature of the
enterprise was Limited Liability Company; Address for business: No. 249, Huangqiao Industrial Zone,
Donglihe West Rd., Tianqiao District, Jinan City; Legal representative: Qin Tangzong; Business scope: sales
and maintainance of the household appliance.
2. The companies deconsolidated in this period: Nil
(IV) Business combination during the period
1. The subsidiaries obtained through business combination under the same control: Nil
2. The subsidiaries obtained through business combination under the different control
Translation of foreign currency statements: Nil
VIII. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below, unless otherwise specified, “year-beginning”
refers to Jan. 1, 2011; “period-end” refers to June 30, 2011; “the period” refers to Jan. 1 to June 30, 2011; “same
period of last year” refers to Jan. 1 to June. 30, 2010; the currency is RMB.
1.Monetary fund
Item Amount at period-end Amount at year-beginning
107
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Excha
Original Exchange Original RMB
RMB converted nge
currency rate currency converted
rate
Cash holdings 1,836,692.45 315,125.48
RMB 1,836,692.45 1,836,692.45 315,125.48 315,125.48
Bank deposit 1,124,042,167.14 1,711,459,024.44
1,103,093,33
RMB 1,103,093,331.94 1,681,969,769.91 1,681,969,769.91
1.94
USD 2,869,189.78 6.4716 18,568,248.59 4,252,397.72 6.622 28,162,354.38
EUR 217,805.26 9.3612 2,038,918.60 136,031.58 8.806 1,197,962.10
AUD 50,095.01 6.8204 341,668.01 - - -
JPY - - - 20.00 0.081 1.63
HKD - - - 151,524.12 0.850 128,936.42
Other monetary 353,578,244.56 274,666,354.37
fund
RMB 330,764,959. 330,764,959.44 252,374,879.88 252,374,879.88
USD 3,077,261.70 6.4716 19,914,806.83 3,261,604.39 6.622 21,600,627.38
EUR 309,626.79 9.3612 2,898,478.29 78,447.41 8.806 690,847.11
Total - - 1,479,457,104.15 - - 1,986,440,504.29
Other monetary fund mainly included acceptance draft deposit and foreign exchange bank deposit which still
needed verification. Except deposit, no such following funds were included in the aforementioned monetary
fund: fund whose cashing procedure could be restricted by mortgage or frozen, fund which was kept abroad and
fund which could not be callback potentially as well.
2.Notes receivable
(1) Category of notes receivable
Category Amount at period-end Amount at year-beginning
Bank acceptance notes 2,367,312,801.73 1,194,506,906.44
443,500.00
Commercial acceptance notes -
Total 2,367,756,301.73 1,194,506,906.44
Notes receivable increased 98.22% to RMB 1,173,249,395.29 at year-end as compared to year-beginning,
primarily due to the enlargement of sales and the sales of the pay-back notes increased.
(2) Notes receivable mortgaged(Top 5) by end of the period amounting to RMB71,606,963.44, details as:
Category Issuing company Issuing Maturity Amount
Bank Nanjing Purchase Center of Suning
2011-3-25 2011-9-25 24,852,303.70
acceptance Appliance Co., Ltd.
Bank Nanjing Purchase Center of Suning
2011-5-23 2011-11-23 14,539,522.67
acceptance Appliance Co., Ltd.
Bank
Jiangsu Five Star Appliance Co., Ltd. 2011-5-16 2011-11-16 12,215,137.07
acceptance
Bank Nanjing Purchase Center of Suning
2011-5-27 2011-11-27 10,000,000.00
acceptance Appliance Co., Ltd.
108
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Bank Nanjing Purchase Center of Suning
2011-5-27 2011-11-27 10,000,000.00
acceptance Appliance Co., Ltd.
Total 71,606,963.44
(3) Notes endorsed to others but not yet due at the end of the period amounting to RMB 69,286,282.04,
details for large amount as:
Category Issuing company Issuin Maturit Amount Note Serials
Bank 2011-5 2011-11-
Shanghai Suning Appliance Co., Ltd. 13,671,838.89 20252909
acceptance -13 13
Bank Nanjing Purchase Center of Suning 2011-6 2011-12-
10,000,000.00 20557501
acceptance Appliance Co., Ltd. -16 16
Bank Nanjing Purchase Center of Suning 2011-4 2011-10-
3,343,567.39 425001549330
acceptance Appliance Co., Ltd. -25 25
Bank Foreign Economy & Trade Yingfeng 2011-3 2011-9-2
2,120,000.00 324001390070
acceptance Co., Ltd. Of Huaihua City -24 4
Bank Xinqinai Materials Co., Ltd. Of 2011-1 2011-7-2
2,000,000.00 GB0103915165
acceptance Yichuan County -25 4
Bank Yongqian Textile Dyeing Co., Ltd. Of 2011-1
2011-7-6 2,000,000.00 CA0103074263
acceptance Wujiang City -6
13054910300232
Bank Xinyang Midea Cooling Products 2011-1
2011-7-7 2,000,000.00 01101070010110
acceptance Sales Co., Ltd. -7
85
Bank Hongcheng Tongyong Machanic 2011-1 2011-7-1
1,000,000.00
acceptance Holding Co., Ltd. Of Hubei -18 8 GA/0101522916
Total 36,135,406.28
3. Accounts receivable
(1) Accounts receivable classify by account age
Amount at period-end Amount at year-beginning
Reserve for bad Reserve for bad
Book balance Book balance
Item debts debts
Propo
Proporti Proporti Proporti
Amount Amount Amount rtion( Amount
on(%) on(%) on(%)
%)
Within 1
841,218,483.47 98.371 36,121,484.57 83.68 381,516,498.19 96.64 17,089,751.23 76.99
year
1-2 7,680,055.52 0.546 1,098,498.21 2.54 6,815,713.12 1.73 861,812.90 3.88
2-3 3,612,953.94 0.421 2,206,430.45 5.11 2,425,433.81 0.61 2,109,034.22 9.50
3-4 2,611,896.52 0.304 1,080,525.13 2.50 3,336,760.22 0.85 2,078,759.50 9.37
4-5 3,033,433.07 0.353 2,629,985.66 6.09 21,703.00 0.01 21,703.00 0.10
Over 5
28,761.45 0.003 28,761.45 0.07 642,946.08 0.16 34,983.45 0.16
years
109
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount at period-end Amount at year-beginning
Reserve for bad Reserve for bad
Book balance Book balance
Item debts debts
Propo
Proporti Proporti Proporti
Amount Amount Amount rtion( Amount
on(%) on(%) on(%)
%)
Total 858,185,583.97 100.00 43,165,685.47 100.00 394,759,054.42 100.00 22,196,044.30 100.00
Net
815,019,898.50 372,563,010.12
value
Account receivable at period-end increase 442,456,888.38 yuan over that of year-begging with 118.76% up
mainly due to the enlargement of sales scale and the unearned account receivable increased.
(2) Disclosure of accounts receivable by category
Amount at period-end Amount at year-beginning
Reserve for bad Reserve for
Book balance Book balance
Item debts bad debts
Propor Propor Prop
Proporti
Amount tion(% Amount Amount tion(% Amount ortio
on(%)
) ) n(%)
Significant
account
receivable and
- - - - - - - -
withdrwal bad
debt provision
singlely
Account receivable withdrwal bad debt provision by combination
Account contact
except with 730,974,840.17 85.18 40,700,663.96 5.57 350,825,120.23 88.87 19,663,114.97 5.60
related parties
Account
contact with 124,745,722.29 14.54 - - 41,401,004.86 10.49 - -
related parties
Subtotal of
855,720,562.46 99.71 40,700,663.96 4.76 392,226,125.09 99.36 19,663,114.97 5.01
combination
Account
receivable with
single minor
100.0
amount but 2,465,021.51 0.29 2,465,021.51 100.00 2,532,929.33 0.64 2,532,929.33
0
withdrwal bad
debt provision
singly
100.0 100.0
Total 858,185,583.97 43,165,685.47 5.03 394,759,054.42 22,196,044.30 5.62
0 0
Net value 815,019,898.50 372,563,010.12
(3) Account receivable with signle major amount but withdrwal bad debt provision singly: Nil
(4) In combinations, withdrwal bad debt provision of account that except the connection with related parties by
account age analysts:
Amount at period-end Amount at year-beginning
Age bad debt bad debt
Amount Proportion(%) Amount Proportion(%)
provision provision
110
Hefei Meiling Co., Ltd. Semi-annual Report 2011
With
717,951,047.36 5 35,891,641.47 341,795,024.33 5 17,089,751.23
1year
1-2years 7,323,321.40 15 1,098,498.21 5,745,419.25 15 861,812.89
2-3
1,167,850.29 35 408,747.60 484,807.82 35 169,682.74
years
3-4
1,838,660.07 55 1,011,263.04 2,795,557.15 55 1,537,556.43
years
4-5
2,689,649.37 85 2,286,201.96 - 85 -
years
Over 5
4,311.68 100 4,311.68 4,311.68 100 4,311.68
years
Total 730,974,840.17 40,700,663.96 350,825,120.23 19,663,114.97
Net
690,274,176.21 331,162,005.26
value
(5) Account connect with related parties in combination:
Provision Bad debt
Combination Book balance
proportion(%) provision
Account connect with related parties 82,168,897.10 - -
Letter of Credit 34,252,160.63 - -
Account receivable insured 2,417,784.56 - -
Other 5,906,880.00 - -
Total 124,745,722.29
(6) Account receivable with single minor amount but withdrwal bad debt provision singly at period-end
Book Bad debt Provision
Details of account receivable Reasons
balance provision proportion(%)
512,925.85 512,925.85 100%
Nanjing Central Emporium Co., Ltd.
Taizhou Luqiao Branch of Zhejiang Yongle Cease
95,090.82 95,090.82 100% business
Appliance Co., Ltd.
contact for 2
Gaomi Sanhe Household Appliance 610,458.57 610,458.57 100% to 3 years;
Marketing Co., Ltd. predicted
un-receivable
Cifeng Baixin Appliance Limited Liability 271,114.97 271,114.97 100%
for failue
Company
urging
Yanji Branch of Jilin Gome Appliance Co., 161,112.50 161,112.50 100%
Ltd.
111
Hefei Meiling Co., Ltd. Semi-annual Report 2011
2,231.60 2,231.60 100%
Helong Bajiazi Zhaolin Appliance
218,509.36 218,509.36 100%
Yichun Jixing Household Appliance City
129,051.14 129,051.14 100%
Shandong Wendeng Department Genral Co.,
Shanxi YongleDazhong Life Appliance Co., 94,067.09 94,067.09 100%
Ltd.
Jiangsu ZHenjiang Gome Appliance Co., 176,425.61 176,425.61 100%
Ltd.
Appliacne Market of Jilin Gome 90,071.23 90,071.23 100%
Appliance,Wulan Street
Liuzhou Minyu Hardware Appliance
51,588.00 51,588.00 100%
Marketing Division
Hongtaiyang Appliance Market of Longsha
1,470.00 1,470.00 100%
District,Qiqihar City
7,122.00 7,122.00 100%
Jianhua Suning Appliance Co, Ltd.
Jiangxi Hongtai Household Appliance 2,698.00 2,698.00 100%
Industial& Trade Co., Ltd. Predicted
un-receivable
Tongliao Wantong Appliance 10,413.00 10,413.00 100% for long
Commercial&Trade Co., Ltd. account age
Hefei Greatwall Cooling Technology Co.,
24,449.77 24,449.77 100%
Ltd.
6,222.00 6,222.00 100%
Linlong Sanitary Products Co., Ltd.
Total 2,465,021.51 2,465,021.51
(7) switch-back of bad debt provision:
Details of account Amount at Reversal Amount at
Reversal reason
receivable year-begging amount period-end
Exchange of the user
receiver in Weifang 40.00 40.00 0.00 Loans recoverd
division
Yanji Branch of Jilin Returned goods and
228,980.32 67,867.82 161,112.50
Gome Electric Co., Ltd. reimbursment
112
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Total 229,020.32 67,907.82 161,112.50
(8) Previous year’s account receivable received in the period which have been verified: Nil
(9) Account receivable verified in the period: Nil
(10) Arrears of the shareholders holding more than 5% (including 5%) shares with voting rights of the
Company
Amount at period-end Amount at year-beginning
Company Bad debt Bad debt
Arrears Arrears
provision provision
Sichuan Changhong Electric
- - 417,189.59 -
Co., Ltd.
(11) Particular about Top five accounts receivable
Relationship Percentage in
Company with the Amount Age total accounts
Company receivable
Nanjing Purchase center of Suning Non-related Within
246,166,538.24 28.68%
Appliance Co., ltd. party one year
Chengdu Gome Electrical Appliance Non-related Within
32,853,025.54 3.83%
Co., Ltd. party one year
Non-related Within
23,572,509.61 2.75%
SISTEMAS PRIME DE MEXICO party one year
Non-related Within
23,064,303.59 2.69%
Jiangsu Five Star Apparatus Co., Ltd. party one year
Non-related Within
16,601,673.92 1.93%
Electrolux Major Appliances Europe party one year
Total 342,258,050.90 39.88%
(12) Details of account receivable from related parties foundn in (III) of Annotation 9
(13) Balance of accounts receivable in foreign currencies
Amount at period-end Amount at year-beginning
Foreign
currenc Original Exchange Original Exchang RMB
RMB converted
currency rate currency e rate converted
USD 30,232,295.52 6.4716 195,651,323.69 7,846,228.46 6.6227 51,963,217.22
EUR 595,891.78 9.3612 5,578,262.13 29,025.24 8.8065 255,610.78
AUD 877,208.35 6.8204 5,982,911.83 851,315.96 6.7139 5,715,650.22
Total 207,212,497.65 57,934,478.22
(14) No derecognition account receivable.
4.Accounts paid in advance
(1) Account paid in advance classify according to age structure
Amount at period-end Amount at year-beginning
Item
Amount Proportion(%) Amount Proportion(%)
Within 1 year 151,225,373.57 91.15 182,900,811.86 97.79
113
Hefei Meiling Co., Ltd. Semi-annual Report 2011
1－2 years 10,780,964.00 6.50 327,345.28 0.18
2－3 years 443,961.47 0.27 76,300.02 0.04
Over 3 years 3,451,228.10 2.08 3,722,320.43 1.99
Total 165,901,527.14 100.00 187,026,777.59 100.00
(2) Account of top five companies paid in advance
Relationship with the Reason for
Company Amount Age
Company unsettlement
Anhui BaosteelSteel Distribution Non-related parties Within 1 Goods not
Co., Ltd. supplier 32,843,564.62 year received
Huntsman Polyurethanes Non-related parties Within 1 Goods not
Shanghai Ltd. supplier 24,884,172.42 year received
Yantai WanHua Polyurethanes Non-related parties Within 1 Goods not
Co., Ltd. supplier 11,748,593.42 year received
Non-related parties Within 1 Goods not
Angang Steel Co., Ltd.
supplier 9,081,451.84 year received
Non-related parties Within 1 Goods not
Cannon Far East Pte Ltd
supplier 6,944,492.91 year received
Total 85,502,275.21
(3) The accounts paid in advance at the end of the year did not include any arrears of the shareholders holding
more than 5% (including 5%) shares with voting rights of the Company.
(4) Balance of the accounts paid in advance in foreign currencies
Amount at period-end Amount at year-beginning
Foreign
currency Original Exchange RMB Original Exchange RMB
currency rate converted currency rate converted
USD 7533097.82 6.5850 49,605,555.82 1,830,316.92 6.6227 12,121,639.87
EUR 1170248.22 8.4148 9,847,453.62 2,164,502.01 8.8065 19,061,686.95
JPY 294000.00 0.0797 23,437.09 - - -
Total 59,476,446.53 31,183,326.82
5.Other accounts receivable
(1)Other account receivable classify by age structure
Amount at period-end Amount at year-beginning
Reserve for bad Reserve for bad
Book balance Book balance
Item debts debts
Propor Propo Propo
Proport
Amount tion(% Amount Amount rtion( Amount rtion(
ion(%)
) %) %)
Within 1
67,593,109.06 93.13 335,784.18 10.57 39,208,026.45 60.08 760,165.28 19.78
year
114
Hefei Meiling Co., Ltd. Semi-annual Report 2011
1-2years 1,220,718.21 1.68 151,468.39 4.11 22,347,466.57 34.24 227,459.29 5.92
2-3 years 1,128,621.74 1.55 396,698.00 11.96 770,794.75 1.17 269,778.17 7.01
3-4 years 182,284.97 0.25 99,244.32 2.99 501,908.48 0.77 258,282.62 6.72
4-5 years 260,190.21 0.36 136,161.68 4.10 154,731.00 0.24 46,521.35 1.21
Over 5
2,197,892.93 3.03 2,197,892.93 66.26 2,281,621.65 3.50 2,281,621.65 59.36
years
Total 72,582,817.12 100.00 3,317,249.50 100.00 65,264,548.90 100.00 3,843,828.36 100.00
Net 69,265,567.62 61,420,720.54
(2) Other account receivables classify by category
Amount at period-end Amount at year-beginning
Reserve for bad Reserve for
Book balance Book balance
Item debts bad debts
Propor Propor Prop Propo
Amount tion(% Amount tion(% Amount ortio Amount rtion(
) ) n(%) %)
Significant account
receivable and
- - - - -
withdrwal bad debt
provision singlely
Account receivable withdrwal bad debt provision by combination
Accounts except
the reserve loans,
investment loans 9.50
9,140,958.41 12.59 1,062,316.84 11.62 18,699,890.11 28.65 1,776,211.40
and connected
account with
related parties
Accounts of
reserve loans,
investment loans
61,186,926.05 84.30 - - 44,497,041.83 68.18 - -
and connected
account with
related parties
Subtotal of 2.81
70,327,884.46 96.89 1,062,316.84 1.51 63,196,931.94 96.83 1,776,211.40
combination
Account receivable
with single minor
amount but 2,254,932.66 3.11 2,254,932.66 100.00 2,067,616.96 3.17 2,067,616.96 100.00
withdrwal bad debt
provision singly
Total 72,582,817.12 100.00 3,317,249.50 4.57 65,264,548.90 100.00 3,843,828.36 5.89
Net value 69,265,567.62 61,420,720.54
(3) Significant other account receivable and withdrwal bad debt provision singlely: Nil
115
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(4) Among combinations, the withdrawal of bad debt provision by age analysts on accounts except the reserve
loans, investment loans and connected account with related parties:
Amount at period-end Amount at year-beginning
Age Reserve for Reserve for
Amount Proportion(%) Amount Proportion(%)
bad debts bad debts
within1year 6,745,062.93 5 321,061.67 15,725,972.20 5 786,298.61
1-2years 995,787.64 15 149,368.14 1,561,541.94 15 234,231.30
2-3 years 1,127,621.74 35 394,667.61 748,371.50 35 261,930.03
3-4 years 114,645.89 55 63,055.24 360,329.70 55 198,181.34
4-5 years 157,840.21 85 134,164.18 54,031.00 85 45,926.35
over5 years - 100 - 249,643.77 100 249,643.77
Total 9,140,958.41 1,062,316.84 18,699,890.11 1,776,211.40
Net value 8,078,641.57 16,923,678.71
(5) Among combinations, accounts of reserve loans, investment loans and connected account with related parties
Withdrwal Bad debt
Combination Book balance Age
proportion provision
Employee’s reserve loans 9,841,116.85 - - within 1 year
Contact amount with
2,463,871.32 - - within 1 year
relatedparties
Export tax rebate 47,125,891.01 within 1 year
Air conditioner income from
1,756,046.87 within 1 year
taobao Alipay
Total 61,186,926.05 - -
(6) Other account receivable with single minor amount but withdrwal bad debt provision singly at period-end
Details of
other Bad debt Withdrwal
Book balance Reasons
account provision proportion
receivable
Resignation Loans to resigned staff and
2,176,803.23 2,176,803.23 100%
staff unrecoverby prediction
Odd
35,970.35 35,970.35 100% Unrecover by prediction
customers
Construction
6,520.00 6,520.00 100% Unrecover by prediction
& division
Other 35,639.08 35,639.08 100% Unrecover by prediction
Total 2,254,932.66 2,254,932.66
(7) Reversal of reserve for bad debts: Nil
(8) Previous year’s other account receivable received in the period which have been verified: Nil
(9)Other account receivables verified this period approved by the 3rd Meeting of 7th Sessiom of the Board:
Nature of Verified Raised from related
Company Reasons
account amount transaction Yes/No
Business trip
Lv Zhengxin Demise No
loans 2,000.00
116
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Hospitalization
Yang Weiye 50,000.00 Demise No
loans
Ji Kai Business trip Demise No
Huibei
The unit was write-off, and legal
Transportation Supplier contact 271,597.00 No
person dead
Team
Total 325,597.00
(10) Other receivables at the end of the period did not include the arrears of the shareholders holding more than
5% (including 5%) of shares with voting rights of the Company.
(11) Top five of other account receivable
Proportion in
Relationship with the
Company Amount Age total other
Company
receivables
Export tax refund Non-related party 47,125,891.01 within1 year 50.90%
Air conditioner income from
Non-related party 1,756,046.87 within1 year 1.90%
taobao Alipay
Reserve fund of Jinan
Marketing branch 904,495.95 within1 year 0.98%
Division
Reserve fund of Beijing
Marketing branch 849,984.50 within1 year 0.92%
Division
Margin of the appliance of
Non-related party 300,000.00 2-3 years 0.32%
town-oriented
Total 50,936,418.33 55.01%
(12) Other account receivable from related parties: Nil
(13) Derecognition of other account receivable: Nil
6. Inventories
(1)Classification of inventories
Amount at period-end Amount at year-beginning
Item Book Impairmen Book Impairme
Book value nt Book value
balance t provision balance
provision
Raw materials 177,200,708.34 8,272,791.71 168,927,916.63 211,396,131.40 12,194,478.76 199,201,652.64
Stock
1,453,571,933.07 71,013,530.63 1,382,558,402.44 1,206,099,840.88 66,645,310.66 1,139,454,530.22
commodities
Low value
consumable 3,285,689.36 - 3,285,689.36 9,213,036.97 - 9,213,036.97
articles
Goods in
67,631,580.21 2,256,593.60 65,374,986.61 145,342,435.25 2,483,014.63 142,859,420.62
transit
Goods-in-pro
56,138,949.19 1,116,977.45 55,021,971.74 78,035,957.67 1,116,977.45 76,918,980.22
cess
117
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount at period-end Amount at year-beginning
Item Book Impairmen Book Impairme
Book value nt Book value
balance t provision balance
provision
Deferred
expense for 34,216,124.52 - 34,216,124.52 15,520,346.20 - 15,520,346..20
molds
Entrust process
808,434.47 714,889.55 93,544.92 860,323.76 714,889.55 145,434.21
materials
Total 1,792,853,419.16 83,374,782.94 1,709,478,636.22 1,666,468,072.13 83,154,671.05 1,583,313,401.08
(2) Provision for impairment of inventories
Increase Decrease during the period
Amount at the Amount at the
Item during the Switch-bac
year-beginning reversal period-end
period k
Raw materials 12,194,478.76 574,862.59 2,408,848.14 2,087,701.5 8,272,791.71
Goods in
1,116,977.45 - - - 1,116,977.45
process
Stock
66,645,310.66 4,918,528.47 529,180.92 21,127.58 71,013,530.63
commodities
Goods in
2,483,014.63 - 226,421.03 - 2,256,593.60
transit
Entrust process
714,889.55 - - - 714,889.55
materials
Total 83,154,671.05 5,493,391.06 3,164,450.09 2,108,829.0 83,374,782.94
(3) Provision for impairment of inventories provided
Proportion of the
reversal amount
Reason for reversal
Item Provision basis during the year in the
during the period
period-end balance of
the inventory
Decrease of the inventory,
Raw reverse provision for
1.36%
materials Compare the book cost and impairment of
realizable net value of the depreciation
Goods in inventory by category; provide
or reverse provision for - -
process impairment of inventory at the
balance of realizable net value Decrease of the inventory,
Stock lower than the book cost reverse provision for
0.04%
commodities impairment of
depreciation
7. Long-term equity investment
118
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(1) Classification of long-term equity investment
Amount at
Item Amount at period-end
year-beginning
Long-term equity investment accounted in the
10,370,000.00 11,270,000.00
cost method
Long-term equity investment accounted in the
16,236,580.63 6,648,060.59
equity method
Total long-term equity investment 26,606,580.63 17,918,060.59
Less: Provision for impairment of long-term
-
equity investment -
Value of long-term equity investment 26,606,580.63 17,918,060.59
Long-term equity investment at period-end increae 8,688,520.04 yuan over that of year-begging with 48.49%
up. Mainly because while purchase the Meiling Group,the newly established company, Hefei Xingmei Assets
Management Co., Ltd which was derivated from partial equity of Packaging Company, not included in the
assets transfer range, was not reckoned into the consolidation range for failue controller by the Company.
(2) Long-term equity investment accounted in the cost method and the equity method
Holdin Voting
Increase
g right Amount at Decrease Cash
during Amount at
Invested company propor propor Initial amount year-beginni during the dividend for
the period-end
tion tion ng period the period
period
(%) (%)
Accounting in the cost
method
1. Huishang Bank Co., Ltd. 1.15 1.15 5,000,000.00 5,000,000.00 - - 5,000,000.00 -
2 Jiujiang Meiling Electric
19.00 19.00 1,000,000.00 950,000.00 - - 950,000.00 -
Marketing Co., Ltd.
3. Chaohu Meiling Electric
50.00 50.00 1,000,000.00 900,000.00 - 900,000.00 - -
Marketing Co., Ltd.Note1
3. Bozhou Meiling Electric
18.00 18.00 800,000.00 720,000.00 - - 720,000.00 -
Marketing Co., Ltd.
4. Guangyuan Meiling
20.00 20.00 800,000.00 800,000.00 - - 800,000.00 -
Electric Marketing Co., Ltd.
5. Guangxi Meiling
Household Apparatus Co., 20.00 20.00 1,000,000.00 1,000,000.00 - - 1,000,000.00 -
Ltd.
6. Changzhou Meiling
20.00 20.00 600,000.00 600,000.00 - - 600,000.00 -
Electric Marketing Co., Ltd.
7. Xuancheng Meiling
16.00 16.00 800,000.00 800,000.00 - - 800,000.00 -
Electric Marketing Co., Ltd.
8. Buyang Meiling Electric
10.00 10.00 500,000.00 500,000.00 - - 500,000.00 -
Marketing Co., Ltd.
Subtotal - - 11,500,000.00 11,270,000.00 - 900,000.00 10,370,000.00 -
Accounting in the
equity method
1. Anhui United Technology
Property Exchange Co., 28.57 28.57 1,000,000.00 2,331,812.72 - 2,331,812.72 - -
Ltd.Note2
2. Hefei Meiling Solar Energy
32.75 32.75 3,111,400.00 4,316,247.87 - 136,457.31 4,179,790.56
Technology Co., Ltd. -
3. Hefei Xingmei Assets
Management Co., LtdNote 48.28 48.28 12,056,790.07 - 12,056,790.07 - 12,056,790.07 -
3
119
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Holdin Voting
Increase
g right Amount at Decrease Cash
during Amount at
Invested company propor propor Initial amount year-beginni during the dividend for
the period-end
tion tion ng period the period
period
(%) (%)
Subtotal 16,168,190.07 6,648,060.59 12,056,790.07 2,468,270.03 16,236,580.63 -
Total 27,668,190.07 17,918,060.59 12,056,790.07 3,368,270.03 26,606,580.63 -
Note1: Based on the Equity Transfer Contract of Chaohu Meiling Apparatus Marketing Co., Ltd. signed
between the Company and Chaohu Hualong Appliance Co., Ltd., after 32% equity of Chaohu Meiling
Apparatus Marketing Co., Ltd. transfer by the Company, Chaohu Meiling Apparatus Marketing Co., Ltd. comes
to the controlling subsidiary of the Company, which was off-setting by consolidation in consolidated statement.
Note2: According to the resolution of 44th Meeting of 6th Session of eth Board, 28.57% equity of Anhui United
Technology Property Exchange Co., Ltd. Held by the Company was transferred in total.
Note3: According to the resolution of 46th Meeting of 6th Session of the Board. The out-of-transfer range assets
and liabilities of Hefei Meiling Packaging Products Co., Ltd. was consented for derivation while purchase the
Meiling Group. Hefei Xingmei Assets Management Co., Ltd. was set up from derivation. Original Meiling
Package Company still in exist. 。Therefore, part of the investment intereset was separated to Hefei Xingmei
Assets Management Co., Ltd.. Due to the 48.28 voting right of Xingmei Assets held by the Company, the
Company has no control on it, Xingmei Assets reckoned into no consolidation range with equity method for
calculation.
(2) Investment in associated companies
Voting
Holding
Invested Business Registration Legal Business Registered right
proportion
company type place representative quality capital proportion
(%)
(%)
Hefei Meiling
Solar Energy Limited Feidong Manufacture 9.5 millio
Ren Sheming 32.75 32.75
Technology Company County and sales n yuan
Co., Ltd.
Hefei
Xingmei Limited Huang Management 1 million
Assets Hefei City
Management Company Youzhi of real estate yuan 48.28 48.28
Co., Ltd and leasing
(continued)
Total Total net Total operating Net profit
Total assets at
Invested company liabilities at assets at income of the of the
period-end
period-end period-end period period
Hefei Meiling Solar Energy
54,759,815.35 41,992,615.02 12,767,200.33 24,977,415.52 -416,650.83
Technology Co., Ltd.
Hefei Xingmei Assets
30,890,557.26 5,917,918.34 24,972,638.92 - -
Management Co., Ltd
(3) Provision for impairment of long-term equity investment: Nil
8. Investment properties
(1) Investment properties measured at costs
Amount at Increase during Decrease during Amount at
Item
year-beginning the period the period period-end
Original value 6,582,644.93 - - 6,582,644.93
Houses and buildings 5,665,953.55 5,665,953.55
120
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount at Increase during Decrease during Amount at
Item
year-beginning the period the period period-end
Land use rights 916,691.38 916,691.38
Accumulated
depreciation and
2,630,868.21 139,455.60 - 2,770,323.81
accumulated
amortization
Houses and buildings 2,406,281.52 123,468.70 2,529,750.22
Land use rights 224,586.69 15,986.90 240,573.59
Provision for
- - - -
impairment
Houses and buildings
Land use rights
Book value 3,951,776.72 -139,455.60 - 3,812,321.12
Houses and buildings 3,259,672.03 -123,468.70 - 3,136,203.33
Land use rights 692,104.69 -15,986.90 - 676,117.79
(2) Particular about mortgage of investment property
Net book
Items Land certificate serials Area M2 Mortgage bank
value
Zhong Fuguoyong No. Ronggui sub-branch of Foshan
Office 845.00 676,117.79
(2003) 020642 Branch of China Merchants
Buld.
Bank
Office Yue Real Estate Zhengzi No. Ronggui sub-branch of Foshan
5,153.32 3,136,203.33
Buld. C1628036 Branch of China Merchants
Total 5,998.32 3,812,321.12
9.Fixed assets
(1) Classification of fixed assets by item
Amount at Increase during Decrease during Amount at
Item
year-beginning the period the period period-end
Original value 1,496,531,882.81 155,973,548.59 86,952,836.15 1,565,552,595.25
Houses and
478,611,832.38 128,600,799.60 60,929,431.10 546,283,200.88
buildings
Mechanical
913,450,415.60 20,521,607.16 19,040,941.27 914,931,081.49
equipment
Transport
29,626,377.18 911,339.06 1,265,747.50 29,271,968.74
equipment
Others 74,843,257.65 5,939,802.77 5,716,716.28 75,066,344.14
Accumulated
612,127,597.26 58,924,685.90 35,889,908.77 635,162,374.39
depreciation
Houses and
79,969,894.64 7,687,461.45 14,933,367.01 72,723,989.08
buildings
121
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount at Increase during Decrease during Amount at
Item
year-beginning the period the period period-end
Mechanical
491,735,839.79 38,115,343.28 15,745,958.09 514,105,224.98
equipment
Transport
16,157,810.10 1,836,311.34 582,387.17 17,411,734.27
equipment
Others 24,264,052.73 11,285,569.83 4,628,196.50 30,921,426.06
Provision for
19,170,153.01 - 1,616,151.37 17,554,001.64
impairment
Houses and
1,850,000.00 - 900,000.00 950,000.00
buildings
Mechanical
13,586,119.51 - 716,151.37 12,869,968.14
equipment
Transport
596,067.96 - - 596,067.96
equipment
Others 3,137,965.54 - - 3,137,965.54
Book value 865,234,132.54 97,048,862.69 49,446,776.01 912,836,219.22
Houses and
396,791,937.74 120,913,338.15 45,096,064.09 472,609,211.80
buildings
Mechanical
408,128,456.30 -17,593,736.12 2,578,831.81 387,955,888.37
equipment
Transport
12,872,499.12 -924,972.28 683,360.33 11,264,166.51
equipment
Others 47,441,239.38 -5,345,767.06 1,088,519.78 41,006,952.54
(2) Fixed assts temporary idle
Original book Accumulated Depreciation
Items Net book value
value depreciation provision
Houses and
3,560,856.00 514,733.00 - 3,046,123.00
buildings
Mechanical
7,327,089.65 2,775,387.39 1,354,665.91 3,197,036.35
equipment
Others 39,183.66 24,951.10 - 14,232.56
Total 10,927,129.31 3,315,071.49 1,354,665.91 6,257,391.91
(3) Fixed assets leased through operating lease:
Items Original book Accumulated Depreciation Net book value
122
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Mechanical
7,704,952.30 1,550,667.66 - 6,154,284.64
equipment
Transport
250,119.00 126,810.76 - 123,308.24
equipment
Others 86,065.00 - - 86,065.00
Total 8,041,136.30 1,677,478.42 - 6,363,657.88
(4) Fixed assets used for mortgage
Bank for
Name Property certificate serials Original value Net value
mortgage
Office buld. YFDZZ No.C1628036 860,810.06 204,671.50
Office
YFDZZ No.C1628036 1,309,613.63 876,000.54
buld.(Fitment)
Office
YFDZZ No.C1628036 3,332,464.76 2,229,085.67
buld.(Fitment) 2
2/F of 1# plant; 2/F
YFDZZ No.C1628035 4,461,822.45 2,376,844.25
of 2# plant
1/F of 1# plant YFDZZ No.C1628035 2,230,911.23 1,188,421.91
1/F of 2# plant YFDZZ No.C1628035 2,230,911.23 1,188,421.91
3# plant YFDZZ No.C1628037 10,510,553.63 5,827,792.82
Foshan Branch
2# plant 2 YFDZZ No.C1628037 961,963.73 533,380.59 of China
Warehouse YFDZZ No.C1628037 1,897,142.05 1,051,909.47 Merchants
Bank
4# plant２ YFDZZ No.C1652820 1,212,957.95 672,549.50
5# plant ZFGY(2003)No. 020640 6,580,091.13 5,043,378.58
5# plant 2 ZFGY (2003) No.020640 408,822.23 313,346.00
6# temporary
ZFGY (2003) No.020640 382,020.00 160,236.15
storage
YFDZZ No.C1652755;
Dormitory 1#, 2#
YFDZZ No.C1652821; 4,910,007.80 2,717,645.81
and 3#
YFDZZ No.C1628038
Dormitory 4# YFDZZ No.C1652754 1,519,062.18 840,787.38
Canteen YFDZZ No.C1652823 1,178,632.00 653,516.67
Property Ownership Right FD Zi
Plant project 6,749,649.58 6,244,575.53
No. 10005351
eCITIC
Office buld, road of Property Ownership Right FD Zi
6,180,980.52 5,720,204.26
the plant area No. 10005351
Total 56,918,416.16 37,842,768.54
10.Construction in progress
(1) Breakdown of construction in progress
Item Amount at period-end Amount at year-beginning
123
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Impair Impair
Book balance ment Book value Book balance ment Book value
provisi provisi
Phase II of Changhong
1,861,804.89 - 1,861,804.89 582,704.23 - 582,704.23
Meiling industry park
Foundation construction of
the project of ice cuber - - - 52,255,649.63 - 52,255,649.63
capacity expansion
Capacity expansion project of
energy-saving and 13,488,293.42 - 13,488,293.42 7,596,497.23 - 7,596,497.23
environmental refrigerator
Construction project of Phase
II for the affiliated daily zone
8,146,044.34 - 8,146,044.34 22,916.00 - 22,916.00
of Meiling High-Tech
Industrial Zone
Equipments pending for
33,412,566.50 - 33,412,566.50 12,402,080.06 - 12,402,080.06
installation and etc.
Manufacture base project of
the Athena luxuary 4,104,247.56 - 4,104,247.56 - - -
refrigerator
Other minor projects etc. 7,610,302.08 - 7,610,302.08 2,319,453.79 - 2,319,453.79
Total
68,623,258.79 - 68,623,258.79 75,179,300.94 - 75,179,300.94
(2) Changes in significant construction in progress
Decrease during the
Increase period
Amount at Amount at
Name during the Other
year-beginning Transfer to period-end
period decre
fixed assets
ase
Phase II of Changhong Meiling
582,704.23 1,279,100.66 - - 1,861,804.89
industry park
Foundation construction of the
project of ice cuber capacity 52,255,649.63 61,799,888.61 114,055,538.24 - 0.00
expansion
Capacity expansion project of
energy-saving and 7,596,497.23 6,632,180.79 740,384.60 - 13,488,293.42
environmental refrigerator
124
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Decrease during the
Increase period
Amount at Amount at
Name during the Other
year-beginning Transfer to period-end
period decre
fixed assets
ase
Construction project of Phase II
for the affiliated daily zone of
22,916.00 8,123,128.34 - - 8,146,044.34
Meiling High-Tech Industrial
Zone
Manufacture base project of the
- 4,104,247.56 - - 4,104,247.56
Athena luxuary refrigerator
Total 60,457,767.09 81,938,545.96 114,795,922.84 27,600,390.21
-
(continued)
Proportion Including:
Accumulated Interest
of project interest
amount of capitalizatio Capital
Name Budget investment Progress capitalized
interest n rate of the source
in budget amount of
capitalization period (%)
(%) the period
Phase II of Changhong 0.28
72.44 99% 723,142.19 - - Loan
Meiling industry park Billion yuan
Foundation
construction of the 0.265 billion Additional
43.04 60% - - -
project of ice cuber yuan placement
capacity expansion
Capacity expansion
project of
0.046 billion Additional
energy-saving and 30.99 90%
yuan placement
environmental
refrigerator
Construction project of
Phase II for the
0.041 billion Self-financin
affiliated daily zone of 19.87 80%
yuan g
Meiling High-Tech
Industrial Zone
Manufacture base
0.512 billion Additional
project of the Athena 0.80 20% - - -
yuan placement
luxuary refrigerator
(3) Provision for impairment of construction in progress: Nil
11. Intangible assets
(1) Items of intangible assets are set out as follows:
Amount at Increase during Decrease during Amount at
Item
year-beginning the period the period period-end
125
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Original price of
966,306,649.58 11,250.00 49,763,902.40 916,553,997.18
intangible assets
Land use right 644,247,266.80 - 49,763,902.40 594,483,364.40
Trademark special
283,292,439.34 - - 283,292,439.34
right
patent
2,066,100.00 - - 2,066,100.00
technology
Non-patent
36,700,843.44 11,250.00 - 36,712,093.44
technology
Accumulated
283,524,215.74 20,521,678.01 5,004,106.43 299,041,787.32
amortization
Land use right 52,924,947.41 13,151,776.63 5,004,106.43 53,548,810.75
Trademark special
214,952,807.59 2,455,785.00 - 224,932,399.45
right
patent
1,153,572.50 - - 1,153,572.50
technology
Non-patent
14,492,888.24 4,914,116.38 - 19,407,004.62
technology
Provision for
912,527.50 - - 912,527.50
impairment
Land use right - - - -
Trademark special
- - - -
right
patent
912,527.50 - - 912,527.50
technology
Non-patent
- - - -
technology
Book value 681,869,906.34 -20,510,428.01 44,759,795.97 616,599,682.36
Land use right 591,322,319.39 -5,627,969.77 44,759,795.97 540,934,553.65
Trademark special
68,339,631.75 -9,979,591.86 - 58,360,039.89
right
patent
- - - -
technology
Non-patent
22,207,955.20 -4,902,866.38 - 17,305,088.82
technology
Intangible assets decrease in the period mainly becaused the land compensation 64 million yuan was received
by Jiangxi Meiling according to regulation of relevant contracts; corresponding land use right, 31,084,385 yuan
has been turn-off regulated by relevant tax and financial systems. The partial separated land use right of
13,573,625.36 yuan was transfer to Xingmei Assets Company from Meiling Packaging Company.
126
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(2) Details of land-use right
Company
Certificate serials Original value Book value Note
held
HJK(GY)（2007）No.076 170,916,716.00 149,996,043.77 Note 1
HJK(GY)（2007）No.061 352,569,599.58 303,164,582.41 Note 1
The DGY（2002）Zi No.0257
Company DGY（2002）Zi No.0258
36,407,000.00 29,961,941.92
DGY（2002）Zi No.0259
DGY（2004）Zi No.0200
ZFGY (2003) No.020639 1,926,204.65 1,463,513.76
ZFGY (2003) No.020640 698,050.03 530,372.42
Zhongshan ZFGY (2003)No.020641 2,103,304.38 1,598,072.61
Changhong ZFGY (2003) No.020642 1,719,071.07 1,306,135.44
ZFGY (2003) No.020643 1,997,244.51 1,517,489.23
ZFGY (2003) No.020644 1,876,446.88 1,425,708.23
Non-ferrous
DGY（2005）Zi No. 180 1,627,217.08 1,627,217.08
metal
Yingkaite
DGY（2008）No.0367 4,724,729.40 2,952,350.86
Apparatus
Meiling
DGY（2009）No.1775 7,289,974.87 7,014,395.48
Packaging
Precision
DGY（2005）Zi No.181 842,798.38 842,798.38
tube
Total 570,213,637.09 490,963,859.80
Note1: In 2004, the Company replaced the development land of original Meiling Group with its account
receivable. And original Meiling Group and Meiling Washing Co., offset the earrs owned to eh Company with
land-use right of development zone on December 31, 2005.
(3) exclusive right of trademark
The Company entered into Transference Contract of Trademark with original Meiling Group on April 29, 2002
concerning refregirators, freezers and trademark listed in relevant trademark registration certificated. Agreed
that transferred 6 piece of Meiling Trademark including words and graph to the Company. The above
mentioned exclusive trademark was evaluated by Anhui Guoxin Assets Assessment Co., Ltd. based on income
precent worth method as RMB 0.325 billion with assets assessment report of [WGXPBZ(2002) No. 121]. Being
approved by [CQ(2002) No. 325] of Approval of Assets Assessment Project Transferred from Hefei Meiling
Group Holding Co., Ltd, trademark transference will be determined by the contribution from original Meiling
Group and the Company. The recognized amount transferred to the Company was RMB 0.13 billion and
amortized in 10 years from 2002. Except for the above mentioned trademark transference, original Meiling
Group reckon RMB 0.195 billion of other trademark into account based on evaluation value. Amortized in 10
years after plus the register capital of RMB 32,000 which have been capitalized.
In 2010, the Company consolidated Meiling Group by diferrent control and realized the unify control of
“Meiling ” trademark and tradename. The Company heretige the trademark authorized agreement of original
Meiling Group that signed externally, till end the of 2010, Hefei Meiling Sole Energy Technology Co., Ltd.,
127
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Hefei meiling Vechicle Industry Co., Ltd. and others still shares the trademark and tradename of “Meiling”. The
Company have gradually pursuit to law procedures for the exclusive use-right of trademark and tradename of
original Meiling Group.
After acquisition of 100% state-owned property of Hefei Meiling Group Holding Co., Ltd. (“Meiling Group”),
based on the principle of unify usage and integrated management on the trademark and trade name of “Meiling”,
protected the independently and integration of ‘Meiling”, the Company checking and inspecting the situation of
trademark and trade name authorized externally for Meiling Group. The Agreement of Trademark Licensing
signed between Meiling Group and Hefei Meiling Small Appliance Co., Ltd. on January 20, 2003 meets no
conditions any more, and dismissal the agreement for cancellation situation required. Therefore, Meiling Group,
subordinate subsidiary of the Company, files a suit to Intermediate People’s Court of Hefei City on October 21,
2010 for rescission of Agreement of Trademark Licensing. Till end of 30 June of 2011, the first instance has
been closed, and waiting the judgment recently.
(4) Patent technology
Yingkaite Appliance, subsidiary of Meiling Group, was established in 2004. at that time the foreigner
shareholder EQUATOR invested by exclusive technology which have been evaluated by Anhui Anyong CPAs
Co., Ltd as fair value of RMB 2,651,700 in 5 years beneficial terms based on income precent worth method.
The two parties are negotiated as US$0.25million, calculated based on exchange rate of that date 1: 8.2644,
RMB 2,066,100 was reckon into account for 10 years amortization. Before consolidated, net value of RMB
912,527 on exclusive technology was totally for impairment provision withdrwal by the Company due to its
failue actual value.
(5) As of the end of 30 June of 2011, mortage of intangible assets is as follows:
Details of
Net book
intangible Property certificate serials Area Note
value
assets
ZFGY (2003)No. 020639 14,834.30 M2 1,463,513.76
2
ZFGY (2003) No. 020640 5,375.90 M 530,372.42
Office building, ZFGY (2003) No. 020641 16,198.20 M2
1,598,072.61 Foshan Branch
plant and of China
dormitory land ZFGY (2003) No. 020642 13,239.10 M2 1,306,135.44 MerchantsBank
ZFGY (2003) No. 020643 15,381.40 M2 1,517,489.23
2
ZFGY (2003) No. 020644 14,451.10 M 1,425,708.23
Bank of
Communications
Land use right DGY（2005）Zi No. 180 30,051.30 M2 1,443,738.11 Hefei
LinquanRoad
Su-branch
Total 9,285,029.8
12.Development expenditure
Decreased in this year
Amount of Increased in Reckoned Intangible Amount at
items
year-begin this period into current assets period-end
gains/losses recognition
128
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Decreased in this year
Amount of Increased in Reckoned Intangible Amount at
items
year-begin this period into current assets period-end
gains/losses recognition
Technology
development of
13,505,659.94 10,156,692.51 17,027.91 12,539.70 23,632,784.84
Changhong Air
Conditioner
Toal 13,505,659.94 10,156,692.51 17,027.91 - 23,632,784.84
Period-end development expenditure increased RMB 10,127,124.9 with 74.98 percents over the year-begin
mainly due to development expenditure for air-conditioners of Sichuan Changhong Air-conditioner Co., Ltd
increased.
13 Goodwill
Period-end
Name of invested Year-begin Increase of Decrease of Period-end
provision for
units amount this period this period amount
devaluation
Hefei Meiling Group
10,922,803.73 - - 10,922,803.73 -
Holdings Co., Ltd
The assets of Meiling Group mergered in 2010 includes the exclusive right to use a trademark on long-term
equity investment and intangible assets of Yingkaite Appliance and other 7 subsidiaries as well as package
company. On the consolidation day, on ground that whether this item of asset benefits from synergistic effect of
enterprises combination and whether it can produce cash flow individually, and regarding the usage and
disposal plan for this item of asset, the Company divided the assets of Meiling Group into 4 groups such as A,
B, C, D and allotted the goodwill according to proportion of fair value of each asset group in total amount of
fair value:
Allotted
item Asset group Basis presumed by asset groups
goodwill
Yingkaite
Appliance Synergistic effect, could
Yingkaite Asset group A individually produce cash flow, 846,742.35
Electric planning to be mergered
Apparatus
Precise pipe Synergistic effect, could
industry Asset group B individually produce cash flow, 2,706,625.42
Nonferrous metal planning to be mergered
Long-term Packaging
investment products Synergistic effect, could
1,839,593.87
Environmental Asset group C individually produce cash flow,
protection planning to be mergered
package
Home
Appliances
Industry and Has no synergistic effect -
Trade
Maidstone
129
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Exclusive right
Intangible Synergistic effect, could produce
to use the Asset group D 5,529,842.09
assets individual cash flow if sold
trademark
singlely
Total 10,922,803.73
At the period-end we will take a devaluation test on the goodwill.
14. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities that recognized
Amount at Amount at
Item
period-end year-begin
Deferred income tax assets
impairment provision of assets 17,522,071.66
20,083,547.28
Projected liabilities 30,513,239.25
40,661,335.95
Long-term deferred and prepaid expenses (allocation
period in tax law is longer than the period in the 103,412.14
accounting policy) 51,706.07
Deductible loss -
6 053 122 28
dismission welfare -
Total 48,138,723.05
74,151,369.83
Deferred income tax liabilities -
estimation value of transactional financial instrument and
- -
derivative financial instrument
change of the fair value of financial assets available for
- -
sale reckoned into capital reserve
Total - -
(2)items of deferred income tax assets without recognition
Amount tat Amount at
Item
period-end year-begin
temporary difference deductable 458,036.25 13,603,591.04
deductable losses 3,105,681.99 61,982,485.24
Total 3,563,718.24 75,586,076.28
Period-end deferred income tax increased by RMB 26,012,646.78 with 54.04 percents over the same period of
last year mainly due to we accrued assets devaluation provision and estimated expenses for the 10-year of
Maintenance for refrigerators going to the rural and staffs’ retirement welfare thus increased the deferred
income tax.
Because there still is uncertainity whether subsidiaries Meiling Group and Mianyang Meiling could get enough
taxable income, we didn’t confirm the deferred income tax.
130
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(3)Particulars about taxable income difference and deductible difference
Items Amount
taxable income difference
Estimated liabilities 271,075,573.00
Subtotal 271,075,573.00
deductible difference -
bad debt provision of account receivable 41,355,002.11
bad debt provision of other account receivable 3,179,139.10
depreciation provision of inventory 77,818,067.68
depreciation provision of long-term equity
124,500.00
investment
depreciation provision of construction in process -
depreciation provision of fixed assets 11,084,491.98
Long-term deferred and prepaid expense (allocation
period in tax law is longer than the period in accounting 344,707.13
policy)
Dismission welfare 48,677,721.72
Subtotal 182,583,629.73
15. details of impairment provision of assets
Decreased in this period
Amount at Increased in this Amount at
Items
year-begin period Written-back other period-end
Bad debt provision 26,039,872.66 21,379,103.49 610,444.18 325,597.00 46,482,934.97
depreciation provision of
83,154,671.05 5,493,391.06 3,164,450.09 2,108,829.08 83,374,782.94
inventory
depreciation provision of
financial assets available for - - - - -
sale
depreciation provision of
investment held with - - - - -
due-maturity
depreciation provision of
- - - - -
long-term equity investment
131
Hefei Meiling Co., Ltd. Semi-annual Report 2011
depreciation provision of
- - - - -
investment real estate
depreciation provision of fixed
19,170,153.01 - 1,616,151.37 17,554,001.64
assets
depreciation provision of
- - - - -
engineering materials
depreciation provision of
- - - - -
construction in process
depreciation provision of
- - - - -
productive biological assets
incl: depreciation provision of
marutiry productive biological - - - - -
assets
depreciation provision of oil and
- - - - -
petrol assets
depreciation provision of
912,527.50 - - - 912,527.50
intangible assets
depreciation provision of
- - - - -
goodwill
Other - - - - -
Total 129,277,224.22 26,872,494.55 3,774,894.27 4,050,577.45 148,324,247.05
16. short-term loans
Type Amoun at period-end Amount at year-begin
Mortgage loan 8,953,361.30 2,563,801.11
Pledge loan - 123,000,000.00
Guarantee loan 69,000,000.00 64,500,000.00
Credit loan 120,000,000.00 48,860,000.00
Total 197,953,361.30 238,923,801.11
There haven’t no short borrowings waiting to be repaid at this period-end.
17. Notes payable
132
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(1)classified according to type
Amount at
Type Amount at period-end
year-begin
Bank acceptance bill 1,236,314,851.84 913,750,239.36
Commerce acceptance bill 80,350,000.00 6,926,000.00
total 920,676,239.36
Period-end notes payable increased by RMB 395,988,612.48 with 43.01 percents over the same period of last
year mainly due to increased acceptance drafts for increased raw materials purchase.
18.Accounts payable
(1)accounts payable
Amount at
Item Amount at period-end
year-begin
Total 1,961,393,556.89 1,421,456,784.36
Incl: over 1 year 41,213,640.82 31,393,432.37
Period-end accounts payable increased by RMB 539,936,772.53 with 37.98 percents over the same period of
last year mainly due to expansion of production scale led to increased materials purchase of suppliers thus the
loan balance payable due in normal period increased.
(2)account payables of shareholders with 5%( 5% included) voting rights of the Company
Amount at
Name Amount at period-end
year-begin
Sichuan Changhong Electric Co., Ltd. 38,229,352.68 14,015,465.54
(3)foreign currency balance in accout payables
Amount at period-end Amount at year-begin
Name Original Conversion Converted Original Conversion Converted
currency rate into RMB currency rate into RMB
USD 107,357.99 6.4716 694,777.97 5,076,865.51 6.6227 33,622,557.21
EUR 3,789.67 8.8065 33,373.73
JPY 35,804,100.00 0.080243 2,873,028.40 34,078,100.00 0.0812 2,769,186.41
Total 3,567,806.36 36,425,117.35
(4) particular of accounts payable to related parties could be seen in Note IV (3).
19.account received in advance
(1) account received in advance
Amount at
Item Amount at period-end
year-begin
Total 625,567,258.99 922,047,156.39
25,000,025.41 37,019,790.49
Incl: over 1 year
Period-end accounts received in advance decreased by RMB 296,479,897.4 with 32.15 percents over the same
period of last year mainly due to speed of goods dispatch and calculation became fast in busy season thus
133
Hefei Meiling Co., Ltd. Semi-annual Report 2011
accouts received in advance decreased.
(2) account received in advance of shareholders with 5%( 5% included) voting rights of the Company
Amount at
Name Amount at period-end
year-begin
Sichuan Changhong Electric Co., Ltd. 65,946,822.83 26,888,716.12
(3) balance of foreign currency in accout received in advance
Amount at period-end Amount at year-begin
Original Conversion Converted Original Conversion Converted
Name currency rate into RMB currency rate into RMB
AUD - - - 1,334.24 6.7139 8,957.95
EUR 520.00 9.3612 4,867.82 10,923.75 8.8065 96,200.00
ASD 4,265,230.22 6.4716 27,602,863.89 6,334,878.19 6.6227 41,953,997.79
GBP 568.75 10.3986 5,914.20 - - -
Total 27,613,645.91 42,059,155.74
(4) Particular of accounts received in advance from related parties could be seen in Note IV (3).
20.Wage payable
Amount at Increase in this Decrease in this Amount at
Item
year-begin period period period-end
Salary, bonus, allowance and subsidy 39,075,345.41 226,701,389.31 250,758,713.22 15,018,021.50
Welfare for workers and staff 84,254.32 6,536,106.17 6,384,381.15 235,979.34
Social insurance 7,078,730.68 31,707,675.44 36,424,502.80 2,361,903.32
Including:
179,450.56 7,632,986.20 7,348,493.53 463,943.23
Medical insurance
Basic endowment insurance 6,461,654.66 21,208,296.05 26,231,762.18 1,438,188.53
Unemployment insurance 425,581.26 1,711,189.28 1,760,131.99 376,638.55
Work injury insurance 54.30 630,066.67 590,692.92 39,428.05
Maternity insurance 11,989.90 525,137.24 493,422.18 43,704.96
Housing accumulation fund 4,699,295.64 15,650,784.96 18,713,863.92 1,636,216.68
Labor union expenditure and personnel
1,272,218.84 299,299.22 920,853.82 650,664.24
education expense
Non-monetary welfare - - - -
Discharge welfare * 43,346,889.72 9,851,706.50 4,520,874.50 48,677,721.72
Others 1,727,542.87 144,177.91 15,770.00 1,855,950.78
Including: cash-settled share-based
- - - -
payment
134
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Total 97,284,277.48 290,891,139.51 317,738,959.41 70,436,457.58
*according to the internal retirement regulated in the Company and the Resolution of 29th Meeting of 5th
Board of Ditrectirs on 28 January 2008, the female worker with over 45 ages and male workers with over 48
ages will voluntary for retirement before hand while cencent with the Company. The withdrawal salary and
social insurance welfare in first half year was RMB 9,824,271.02.
21.Tax payable
Item Amount at period-end Amount at year-begin
Value-added tax 85,349,469.58
-18,712,080.31
Business tax 878,868.82 206,335.45
Enterprise income tax 86,804,292.06 83,584,879.23
Individual income tax 2,153,148.20 1,305,739.68
Urban maintenance and construction tax 6,931,355.06 3,490,835.72
House property tax 1,690,442.27
1,207,424.93
Land-use right tax 628,789.36 3,012,746.92
Educational surtax 4,740,998.52
2,249,843.21
Stamp tax 2,148,325.78 1,193,518.60
Construction fund of Water Conservancy
951,120.72
Projects
547,466.57
Fund for coarse adjustment 526,971.21 338,708.19
Flood-control fund 698,586.62 513,642.05
embankment fee 75,399.17 28,804.77
Land value-added tax
742,000.00
Total 194,319,767.37 78,967,865.01
Period-end tax payable increased by RMB 115,351,902.36 with 146.07 percents over the same period of last
year mainly due to value added tax and extra increased dramatically in busy June of production and sales.
22.Dividends payable
Amount at Amount at Reasons for delay
Name
period-end year-begin payment over 1 day
International Business Department No receiving
153,697.50 153,697.50
of Industry and Commercial Bank procedure from
Communication Bank of Hefei No receiving
153,697.50 153,697.50
Branch procedure from
No receiving
Other piecemeal units 431,300.30 431,300.30
procedure from
Total 738,695.30 738,695.30
23.Other payable
135
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(1)Other payable
Item Amount at period-end Amount at year-begin
Total 722,592,518.31 410,610,813.51
incl: Over 1 year 15,596,911.69 78,794,251.84
Period-end other payable increased by RMB 311,981,704.8 with 75.98 percents over the same period of last
year mainly due to expenses which had occurred but not been paid increased in this period.
(2)Account paid to the shareholder unit which holds above 5% of the shares of the Company in the balance of
other payable at the year-end:
Name Amount at period-end Amount at year-begin
Sichuan Changhong Electric Co., Ltd 2,647,627.55 605,555.10
(3)Balance of foreign currency in other accounts payable
Amount at period-end Amount at year-begin
Foreign
currency Original Cross Equivalent in Original Cross Equivalent
currency rate RMB currency rate in RMB
USD 327,118.61 6.4716 2,116,980.80 565,938.75 6.6227 3,524,100.59
EUR - - - 13,558.83 8.8065 119,405.84
AUD - - - 42,000.00 6.7139 281,983.80
Total 2,116,980.80 3,925,490.23
24.Non-current liabilities due within one year
Item Amount at period-end Amount at year-begin
long-term borrowings due within one year -
950,900.00
bond payable due within one year -
-
long-term payables due within one year -
-
Deferred earnings transferred to earnings and
1,189,452.90
losses within 1 year 1,195,791.72
Total 1,189,452.90
Period-end non-current liabilities due within one year increased by RMB 957,238.82 with 80.48 percents over
the same period of last year mainly due to long-term borrowings due within 1 year increased in this period.
25.Long-tern loans
(1)classification of long-tern loans
Type Amount at period-end Amount at year-begin
Pledge loan - -
Mortage loan 6,400,000.00 7,040,000.00
136
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Guarantee loan - -
Credit loan 6,305,500.00 7,466,060.00
Total 12,705,500.00 14,506,060.00
(2)Particualrs about long-term borrowings in period-end amount
Amount at period-end Amount at year-begin
Loans start Loans end Foreign Local Foreign Local
Company Currency Rate(%)
from (date) at (date) currency currency currency currency
amount amount amount amount
Municipal
Bureau of
2006-11-9 2021-11-8 RMB 2.80 - 6,400,000.00 - 7,040,000.00
Finance of
Hefei (1)
Municipal
Bureau of
2002-11-21 2017-11-20 RMB 2.25 - 3,905,500.00 - 4,556,400.00
Finance of
Hefei(2)
Municipal
Bureau of
2004-12-20 2019-12-20 RMB 2.80 - 2,400,000.00 - 2,700,000.00
Finance of
Hefei(3)
Municipal
Bureau of
- - RMB - - - - 209,660.00
Finance of
Hefei(4)
Total 12,705,500.00 14,506,060.00
Note1: In August of 2006, the Company signed Asset Mortgage Agreement with Ministry of Finance of Hefei.
It takes five industry crusher chambers which cover an area of 2,322.98 square meters (Details could be found
in Fixed assets for mortagage in the Appendix VIII and X) as mortgage for the Company to get the lending of
treasury bond fund which has 15-year term and worthy of RMB 7,040,000 from the Ministry of Finance of
Hefei. The capital on-lending began to bear interest from the appropriate date (November 9, 2006), which
would be paid by stages in the loan period to Ministry of Finance of Hefei by the Company. The first four years
were grace period, during which the annual interest rate was subject to floating interest rate (the annual interest
rate was the annual interest rate of one year fixed deposit plus 0.3%). The principle payment in this year is
RMB 640,000.00 while the interest payable in this year was RMB179,500.00.
Note2: On November 1, 2002, the Company signed Agreement on Lending of Treasury Bond for Building
Project fund with Ministry of Finance of Hefei, which promissed that Ministry of Finance of Hefei lending
treasury bond RMB 7,160,000 of the technology reform project of nanometer preservation material to the
Company with the return time limit of 15 years. The capital on-lending began to calculate the interest from the
appropriate date (November 21, 2002), which would be paid by stages in the loan period to Ministry of Finance
of Hefei by the Company. The first four years were grace period, in which the annual interest rate was subject
to floating interest rate after year 1999 (the annual interest rate was the annual interest rate of one year fixed
deposit plus 0.3%). The principal RMB 650,900.00 was classified into non-current liabilities due within 1 year,
and interest was RMB132,800.00.
Note3: It was the special treasury bond capital appropriated by Ministry of Finance of Hefei for enterprises’
information reform, received on Dec. 10th, 2004. The principal RMB 300,000.00 was classified into non-current
137
Hefei Meiling Co., Ltd. Semi-annual Report 2011
liabilities due within 1 year, and interest was RMB 76,500.00.
Note 4: balance at year-begin refers to long-term borrowings of Packaging Products which is subsidiary of
Meiling Group. This account is out of purchase scope when the Company consolidated Meiling Group last year.
26.Special payable
Amount at Increase during Decrease during Amount at
Item
year-begin the year the year year-end
Governmental subsidy
for relocation of 33,214,132.26 -
120,544.00 33,093,588.26
parent company
Government subsidies
for Jiangxi Meiling - 64,000,000.00 47,439,476.50
16,560,523.50
Refrigerating
Total 33,214,132.26 64,000,000.00 47,560,020.50 49,654,111.76
Period-end special payable increased by RMB 16,439,979.5 with 49.5 percents over the same period of last
year mainly due to subsidiary Jiangxi Meiling Refrigerating Co., Ltd received compensation for land reclaim
and storage of previous and old plant.
On Jan. 20 of 2011 the Company held the 41st meeting of the 6th session of Board of Directors which reviewed
and passed the Proposal on Reclaiming and Storing Land Use Right of Jiangxi Meiling Refrigerating Co., Ltd.
On Jan. 14 of 2010 Jiangxi Meiling (side B), the subordinate controlled subsidiary of the Company, together
with land storage center of Jingde Town (side A), signed the Contract on Storing Use Right of State-Owned
Land. Jiangxi Meiling planed to transfer the land use right of total 159,448.8 squares (equivalent to 239.17
acres) of land located in Street Porcelain City GZJTGY (2010) No. 0121 to land storage center of Jingde Town,
with RMB 65 million of land compensation price. Till Jun. 30 of 2011, RMB 64 million of land compensation
fees had been in place actually in accordance with the rules of contract. Relevant land and property had been
transferred and withdrawn in the light of relevant financial tax.
27.Projected liability
Carry-forwa
Amount at Increase during Amount at
Item rd during the
year-begin the period period -end
period
External guarantee - - - -
Outstanding lawsuit - - - -
Product quality guarantee 9,317,083.00 - - 9,317,083.00
Specific gurantee fund for
194,104,512.00 67,653,978.00 - 261,758,490.00
quality service of products
Reorganization duty - - - -
Loss contract waiting for
- - - -
execution
Other - - - -
Total 203,421,595.00 67,653,978.00 - 271,075,573.00
Product quality guarantee was the ‘Three Guarantee” maintenance fee withdrwal according to the ‘Three
Guarantee” policy; Specific gurantee fund for quality service of products was the accrual overhaul expensed of
the service activity”ten-year free maintenance for major parts of country-oriented appliance” within 1-4 years.
Period-end projected liabilities increased by RMB 67,653,978.00 with 33.26 percents over the same period of
last year mainly due to provision for service expenses of 10-year of free maintenance for refrigerators going to
the rural increased.
138
Hefei Meiling Co., Ltd. Semi-annual Report 2011
28.Other non-current liabilities
Item Amount at period-end Amount at year-begin
Deferred income 26,425,893.61 26,937,022.85
(1) The Company received land compensation from government for its relocation. Original value of the
dormitory buildings and affiliated facilities used for arranging employees was recognized as deferred income,
with amount of RMB 29,806,542.22. Pursuant to the depreciation term of such dormitory buildings and
affiliated facilities, the Company started amortization commencing from the depreciation month since they
were transferred to fixed assets. Amortization of RMB 1,195,791.72 as of this report period was carried forward
to non-operating income from deferred income. RMB 1,184,680.56 was carried out as non-current liability due
within one year in this period.
(2)Particular about government subsidy:
Book balance at period-end
Amount Amount
Amount listed Amount listed Reaso
reckon into return
Type of subsidy in other in other ns for
current this
non-current current return
gain/loss period
liability liability
Removal compensation 26,425,893.61 1,195,791.72 625,334.42 -
Total 26,425,893.61 1,195,791.72 625,334.42 -
29.Share capital
Amount at Amount at
Change during the period
year-begin period-end
Share
s
New transf
Prop Bon Others Prop
Shareholders / type shar erred
us （trans
Amount ortio es from Subtotal Amount ortio
shar
n% issue capit fer） n%
e
d al
reser
ve
Shares with
conditional 124,553,317 23.48 - - - 22,419 22,419 124,575,736 23.49
subscription
State-owned shares - - - - - - - - -
State-owned legal
67,461,338 12.72 - - - - - 67,461,338 12.72
person shares
Other domestic shares 57,024,724 10.75 - - - - - 57,024,724 10.75
Including: Domestic
un-state-owned legal 57,024,724 10.75 - - - -85,387 -85,387 56,939,337 10.74
person shares
Domestic natural
- - - - - 85,387 85,387 85,387 0.01
person shares
Foreign shares - - - - - - - - -
Including: Foreign - - - - - - - - -
legal person shares
Foreign natural person
- - - - - - - - -
shares
Executives’ shares 67,255 0.01 - - - 22,419 22,419 89,674 0.02
Shares with no restricted 405,821,132 76.52 - - - -22,419 -22,419 405,798,713 76.51
condition
139
Hefei Meiling Co., Ltd. Semi-annual Report 2011
RMB common shares 292,721,132 55.19 - - - -22,419 -22,419 292,698,713 55.19
Domestically listed 113,100,000 21.33 - - - - - 113,100,000 21.32
foreign shares
Overseas listed
- - - - - - - - -
foreign shares
Others - - - - - - - - -
Total shares 530,374,449 100.0 - - - - - 530,374,449 100.0
Details of the private placement shares issued in the year and release condition on restricted shares found in
Company Profiel in I.
30.Capital reserve
Amount at Increase during Decrease during Amount at
Item
year-begin the period the period period-end
Share premium 1,562,490,888.35 - - 1,562,490,888.35
Other capital reserve 48,080,558.82 - - 48,080,558.82
Total 1,610,571,447.17 - - 1,610,571,447.17
31.Surplus reserves
Amount at Increase during Decrease during Amount at
Item
year-begin the period the period year-end
Statutory surplus
163,989,991.35 - - 163,989,991.35
reserve
Discretionary surplus
115,607,702.16 - - 115,607,702.16
reserve
Other - - - -
Total 279,597,693.51 - - 279,597,693.51
32.Undistributed profit
Withdraw or
Item Amount
distribution ratio
Amount at the end of last period 296,750,782.08
Add: adjustment from undistributed profit at year-begin -
Including: change of accounting policy -
Correction of former material error -
Change of combination scope under common
-
control
Other adjustment factors -
Amount at the beginning of this year 296,750,782.08
Add: net profit attributable to shareholders of parent
126,157,996.21
company for this year
Deficit coverage of surplus reserve -
Less: withdraw of statutory surplus reserve -
withdraw of discretional surplus reserve -
Withdraw of general risk provision -
140
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Dividend payable for ordinary shares -
Dividend of ordinary shares transferred to sharecapital -
Amount at the end of this period 422,908,778.29
Period-end undistributed profit increased by 126,157,996.21 with 42.51 percents over the same period of last
year mainly due to net profit realized in this period increased.
33.Minority shareholder’s equity
Minority Amount at Amount at
Subsidiaries shareholding ratio
at period-end period-end year-begin
Zhongke Meiling Cryogenics
30%
Limited Company 18,919,949.93 17,935,101.79
Mianyang Meiling Refrigerating
1.5%
Co., Ltd -110,756.09 -113,184.28
Jiangxi Meiling Refrigerating Co.,
3%
Ltd 99,532.40 79,471.01
Jiangxi Meiling Electrics Co., Ltd 0.01875%
Hefei Meiling Appliance Marketing
0.002727%
Co., Ltd. -363.56 26.70
Xinxiang Meiling Appliance
41%
Marketing Co., Ltd. 1,036,961.72 1,544,472.07
Luohe Meiling Appliance
63%
Marketing Co., Ltd. 3,174,948.39 3,150,000.00
Wuhu Meiling Appliance
64%
Marketing Co., Ltd. 3,707,436.39 3,840,000.00
Changchun Meiling Appliance
3%
Marketing Co., Ltd. 89,201.89 90,000.00
Bengbu Meiling Appliance
15%
Marketing Co., Ltd. 499,207.65 450,000.00
Hengyang Meiling Appliance
59%
Marketing Co., Ltd. 1,635,870.80 1,920,000.00
Nanchang Meiling Appliance
64%
Marketing Co., Ltd. 2,000,171.62 -
Liu’an Meiling Appliance
64%
Marketing Co., Ltd. 643,625.15 -
Jinzhou Meiling Appliance
40%
Marketing 1,576,169.32 -
Shenyang Meiling Appliance
5%
Marketing 111,522.92 -
141
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Wuhan Meiling Appliance
9%
Marketing 383,224.25 -
Zhengzhou Meiling Appliance
64%
Marketing 1,784,964.74 -
Shijiazhuang Meiling Appliance
64%
Marketing 1,797,656.88 -
Mianyang Meiling Appliance
48%
Marketing 2,386,808.46 -
Chengdu Meiling Appliance
17%
Marketing 554,052.17 -
Guiyang Meiling Appliance
74%
Marketing 1,687,109.82 -
Fuzhou Meiling Appliance
1%
Marketing 14,323.54 -
Nanjing Meiling Appliance
1%
Marketing Co., Ltd. 14,444.79 -
Hefei White Meiling Appliance
15%
Marketing Co., Ltd. 765,144.04 -
Taiyuan Meiling Appliance
60%
Marketing 1,935,721.85 -
Changsha Meiling Appliance
64%
Marketing 2,727,795.90 -
Huhhot Meiling Appliance
45%
Marketing 1,011,947.12 -
Hangzhou Meiling Appliance
12%
Marketing 256,048.14 -
Chongqing Meiling Appliance
15%
Marketing 92,954.95 -
Kunming Meiling Appliance
54%
Marketing 1,396,675.63 -
Shanghai Meiling Appliance
1%
Marketing 11,744.39 -
Nantong Meiling Appliance
42%
Marketing 1,160,576.16 -
Neijiang Meiling Appliance
20%
Marketing 599,421.72 -
142
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Tianjin Meiling Appliance
15%
Marketing 426,619.66 -
Urumqi Meiling Appliance
10%
Marketing 267,141.44 -
Chaohu Meiling Appliance
50%
Marketing 2,883,592.99 -
Harbin Meiling Appliance
64%
Marketing 1,697,518.86 -
Beijing Meiling Appliance
1%
Marketing 30,027.27 -
Lanzhou Meiling Appliance
60%
Marketing 1,814,263.87 -
Xi’an Meiling Appliance Marketing 39%
1,171,872.21 -
Guangzhou Meiling Appliance
14%
Marketing 700,883.02 -
Jinan Meiling Appliance Marketing 64%
Total
62 875 995 30 28 895 887 29
Period-end minority shareholders’ equity increased by RMB 33,980,108.01 by 117.59 percents over the same
period of last year mainly due to marketing model of the Company was reformed and secondary subsidiaries
were set up successively thus minority shareholders’ equity increased.
34.Operating income and operating cost
(1)Operating income and operating cost
Amount for same
Item Amount for this period
period of last year
Main business income 5,168,549,152.44 4,289,072,025.85
Other business income 306,469,536.20 286,687,781.11
Total 5,475,018,688.64 4,575,759,806.96
Main business income 4,019,061,177.42 3,201,834,567.45
Other business income 282,394,871.08 246,264,163.37
Total 4,301,456,048.50 3,448,098,730.82
(2)Main business classified according to product
Amount for this period Amount for same period of last year
Product Operating Operating
Operating cost Operating cost
income income
Refrigerator,freezer 3,539,624,036.27 2,588,293,007.07 3,273,223,447.00 2,265,448,780.85
Air conditioner 1,522,538,794.50 1,341,976,407.24 1,015,848,578.85 936,385,786.60
Washing machine 56,711,859.87 49,255,837.49 - -
Other 49,674,461.80 39,535,925.62 - -
Total 5,168,549,152.44 4,019,061,177.42 4,289,072,025.85 3,201,834,567.45
(3)Main business classified according to sales region
143
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount for this period Amount for same period of last year
Region
Operating income Operating cost Operating income Operating cost
Domestic 4,524,774,628.61 3,390,966,852.43 3,894,283,359.62 2,835,012,783.88
Overseas 643,774,523.83 628,094,324.99 394,788,666.23 366,821,783.57
Total 5,168,549,152.44 4,019,061,177.42 4,289,072,025.85 3,201,834,567.45
(4)Sales income received from the top 5 customers this period
Customer Operating income Proportion taking in total
Sichuan Changhong Electric Co. Ltd 630,121,729.39 11.51%
Suning Appliance Co., Ltd. Nanjing
466,576,189.72 8.52%
Purchase Center
Guangxi Meiling House Apparatus Co., Ltd 65,373,326.63 1.19%
Buyang Meiling Appliance Marketing Co.,
56,826,215.80 1.04%
Ltd.
Chongqing Yuao Electric Appliance Sales
50,348,935.40 0.92%
Co., Ltd
Total 1,269,246,396.94 23.18%
35.Business tax and extra charges
Item Amount for this period Amount for same period of last year
Business tax 213,161.00 120,876.52
City construction tax 11,211,699.26 11,505,185.55
Extra charge for education 8,028,992.56 6,816,024.21
Total 19,453,852.82 18,442,086.28
36.Sales expense
Amount for same
Item Amount for this period
period of last year
Market support 332,026,794.94 317,792,258.09
Transport expenses 182,289,436.10 167,445,489.95
National three guarantees expense 66,726,845.17 55,112,304.06
Accrued expense of 10-year guarantee for
67,653,978.00 57,127,854.00
county-oriented appliance
Salary and extra charges 71,641,628.47 131,115,249.44
Social insurance 6,232,141.96 3,787,319.55
House accumulation fund 1,804,929.55 1,383,945.35
Advertisement expenses 45,483,220.37 90,095,738.32
Air conditioner installation fee 95,697,936.42 35,410,966.66
Operation activities expenses 8,342,091.28 11,867,997.44
Exhibition expenses 27,735,395.97 40,162,599.21
Storage lease expenses 29,815,327.56 24,572,457.05
144
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Traveling expenses 12,931,053.87 11,911,126.51
Meeting organization 6,662,076.03 9,967,074.67
House-lease expenses 4,999,637.90 4,427,552.38
Communication expenses 3,173,313.24 3,677,065.32
Vehicle consumption 3,412,457.85 3,548,840.18
Office expenses 1,517,758.02 2,207,881.28
Consumption of machinery materials 1,332,676.94 2,271,675.23
Depreciation expenses 1,683,199.36 1,605,377.60
Other expenses 9,813,654.78 10,908,466.55
Total 980,975,553.78 986,399,238.84
37.Administration expense
Item Amount for this period Amount for same period of
Salary and extra expenses 40,525,932.53 21,572,285.54
Amortized intangible assets 20,056,465.44 17,241,541.02
Dismission welfare 9,824,271.02 5,473,061.00
Social insurance and Public
11,673,885.96 9,656,324.18
Housing Reserve Fund
Tax 9,222,727.52 7,667,470.25
Trial fee of R&D 7,131,665.02 4,953,844.93
Depreciation 7,745,818.63 4,443,207.51
Insection and authentication
1,962,781.39 1,268,710.76
fee
Domestic travelling fee 1,841,605.79 1,315,021.21
Use chage of software 517,592.99 879,780.19
Business activities 1,759,396.51 770,211.49
Property insurance 1,566,730.34 1,321,035.32
Funds of Board 642,980.44 577,241.10
Office charge 1,738,572.15 828,747.62
Others 27,333,738.49 6,390,592.98
Total 143,544,164.22 84,359,075.10
Administration expense increased over the same period of last year mainly due to salary expenses increased in
this period and the consolidation scope of consolidation statement added Meiling Group and its subsidiaries as
well as joint marketing companies.
33.Financial expense
Amount for same
Item Amount for this period
period of last year
Interest expenditure 4,204,824.66 4,422,220.94
Less：Interest income 7,494,271.83 3,392,394.20
Add: exchange loss 1,093,505.60 4,716,418.74
145
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Add: procedure charge expenditure 2,751,113.85 1,870,212.49
Add: discount expenditure -16,991,034.30 -11,511,174.36
Add: other expenditure 1,195,220.44 -530,325.76
Total -15,240,641.58 -4,425,042.15
Financial expenses decreased over the same period of last year mainly due to interests from raised capital
increased and the cash discount amount from suppliers increased.
39.Assets depreciation reserves
Amount for same
Item Amount for this period
period of last year
Bad debt losses 20,768,659.31 11,105,398.62
Provision for falling price of inventory 2,328,940.97 4,424,470.56
Provision for devaluation of financial asset available
- -
for sales
Provision for devaluation of held-to-maturity
- -
investment
Provision for devaluation of long-term equity
- -
investment
Provision for devaluation of investing property - -
Provision for devaluation of fixed assets - 124,500.00
Provision for devaluation of engineering materials - -
Provision for devaluation of construction in progress - -124,500.00
Provision for devaluation of productive biological
- -
asset
Provision for devaluation of oil asset - -
Provision for devaluation of intangible asset - -
Provision for devaluation of goodwill - -
Total 23,097,600.28 15,529,869.18
Assets depreciation reserves increased over the same period of last year mainly due to the bad debts provision
and inventory devaluation provision accrued according to corporate accounting policy and the actual condition
of accounts receivable and inventory of the Company, increased.
40.investment income
(1)Sources of investment income
Amount for this Amount for same
Item
period period of last year
Long-term equity investment income by cost method 4,360,593.46
Long-term equity investment income by equity
-1,738,998.66
method -136,457.31
146
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Investment income from disposal of long-termequity
-
investment 201,850.28
Investment income from period of holding tradable
- -
financial assets
Investment income from period of holding
- -
hold-to-maturity investment
Investment income from period of holding financial
- 210,000.00
assets available for sale
Investment income from disposal of tradable
- -
financial assets
Investment income from disposal of
- -
hold-to-maturity investment
Investment income from disposal of financial assets - 134,809,167.26
available for sale
Total 137,640,762.06
Investment income decreased over the same period of last year mainly due to we sold financial asset available
for sale, Keda Xunfei Stock last year thus got income while this year we had no this part of income.
(2)Long-term equity investment income by cost method
Amount for this Amount for
Item Remark
period same period of
Chaohu Meiling Electrics Appliance
267,003.27 -
Marketing Co., Ltd
(3)Long-term equity investment income by equity method
Amount for
Amount for this
Item same period of Remark
period
last year
Hefei Meiling Solar Energy Technology
-136,457.31 -
Co., Ltd.
United Technologies Equity Exchange
- -764,088.90
Co., Ltd. Anhui
Hefei Meiling Packaging Co., Ltd. - -974,909.76
(4)Investment income from disposal of financial assets available for sale: Nil
41.Non-operation revenue
(1)Details about non-operation revenue
Amount for same
Item Amount for this period
period of last year
Gains from disposal of non-current assets 10,974,329.05 2,550,725.51
Incl.：gains from disposal of fixed assets 2,550,725.51
gains from disposal of Intangible assets 10,940,815.31 -
Gains from debt restructuring -
Gains from exchange of non-monetary capital -
Gains from donation -
Government subsidy 108,247,649.58 91,039,565.49
147
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Allocation of deferred income - 560,801.71
Income of penalty 157,530.61
Others 464,554.19
Total 119,542,650.05 94.773,177.51
RMB 625,334.42 of deferred income confirmed in this period together with annual report disclosure had been
included in governmental subsidies and we won’t list them singlely.
(2)Details about government subsidy
Amount for
Amount for
Item same period of Sources and accordance
this period
last year
Reward Policy for Promoting A Stable
Capital for keeping stable
513,874.00 - and Rapid Development of Industrial
increase of foreign trade
Economy
Transferred deferred
625,334.42 560,801.71
income
Issue the notice of usage plan for
Subsidies for fixed special capital for 2009 annual
226,286.00 -
assets environmental protection in Hefei (the
2nd series) (HH [2009] No. 157)
Notice of Finance department, NDRC
Subsidy in favor of
[CJ(2009)] No. 213; Finance
energy-saving air 105,114,545.73 68,950,000.00
department, NDRC [CJ(2009)] No. 5
conditioner
and No. 6;
Brand reward, specific subsidies for
Sporadic government environmental protection, technology
989,300.00 2,046,431.56
incentives improvement reward and enterprise
improvement reward
Tax return 326,353.18 665,204.93
Subsidies for obsorption
451,956.25 -
of re-innovation
R & D Awards - 16,047,100.00
job subsidies for ifficult
- 1,649,700
enterprise
Post-disaster financial
- 1,125,600.00
discount capital
Grant for measurement
- 90,900.00
instrument
Reward for independent
- 400,000.00
research project
subsidies for return on
export tax in the third - 64,629.00
quarter of 2009
Total 108,247,649.58 91,600,367.20
148
Hefei Meiling Co., Ltd. Semi-annual Report 2011
42.Non-operating expenditure
Amount for same period
Item Amount for this period
of last year
Loss from disposal of non-current assets 1,884,529.38 513,620.69
Incl.：loss from disposal of fixed assets 1,884,529.38 513,620.69
loss from disposal of Intangible assets - -
Loss from debt restructuring - -
Loss from exchange of non-monetary asset
- -
capital
External donation - 14,947.27
Penalty and late fee 174,850.08 -
Others 83,949. 02 -
Total 2,143,328.48 528,567.96
Non-operating expenses increased over the same period of last year mainly due to discard of fixed assets of this
period increased.
43.Income tax expenses
Amount for same period
Item Amount for this period
of last year
Current income tax 44,148,538.56 48,698,374.92
Deferred Income Tax -26,012,646.78 -8,396,979.87
Total 18,135,891.78 40,301,395.05
Income tax expenses decreased by RMB 22,165,503.27 over the same period of last year mainly due to the
Company accrued quality service expense for 10-year of free maintenance for refrigerators going to the rural
and staffs’ retirement benefit thus the confirmed deferred income tax increased.
Current income tax
Item Amount
Total consolidated profit this period 139,463,828.43
Add: Combined offset -6,144,091.46
Add: Amount increased by taxation adjustmetn 487,774,532.98
Less: Amount decreased by taxation adjustment 321,834,886.13
Add:Domestic deficit coverage by overseas taxable
-
income
Less: Deficit coverage for previously years 309,860.86
Add: Deficit of subsidiary this year -
Amount of taxation income this period 298,949,522.96
Including: 25% rate applicable -10,181,519.69
15% rate applicable 309,131,042.65
149
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Item Amount
12.5% rate applicable -
Income tax paid this period 46,841,766.75
Including: 25% rate applicable 472,110.35
15% rate applicable 46,369,656.40
12.5% rate applicable -
Less: Deduction amount of income tax -
Less: Offset amount of income tax 113,697.29
Tax payable this period 46,728,069.46
Add: Income tax payable for oversea’s income -
Less: Income tax offset for oversea’s income -
Add: Other adjustment factor -2,579,530.90
Current incoem tax 44,148,538.56
44.Calculation for basic earnings per share and diluted earnings per share
Amount for
Amount for this
Item Serials same period of
period
last year
Net profit attributable to
1 126,157,996.21 218,616,696.38
shareholders of parent company
Non-current gains and losses
2 10,303,133.16 135,723,223.84
attributable to parent company
Net profit attributable to
shareholders of parent company 3=1-2 115,854,863.05 82,893,472.54
after deduction of non-current
gains and losses
Total shares at the beginning of
4 530,374,449.00 413,642,949.00
the year
Additional share capital transferred
from public reserve or additional
5
shares from shares dividend - -
distribution (I)
Additional shares from issuing
new shares or debt-converted 6
- -
shares(II)
Accumulative months of the
additional shares(II) commencing
7
from the next month till the end - -
of the year
Decreased shares due to
8
repurchase - -
150
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Accumulative months of the
decreased shares commencing
9 -
from the next month till the end -
of the year
Decreased shares due to share 10 -
shrink -
Mouths during the report period 11 6 6
Weighted average of ordinary
12=4+5+6×7÷11-8×9÷11-10 530,374,449.00 413,642,949.00
shares issued
Basic earnings per share(I) 13=1÷12 0.2379 0.5285
Basic earnings per share(II) 14=3÷12 0.2184 0.2004
Diluted potential ordinary shares
15 -
dividend recognized as expense -
Conversion expense 16 -
Income tax rate 17 15% 15%
weighted average of ordinary shares
added through warrant, exercise of 18 -
-
option and convertible bonds
19= ［ 1+(15-16)×(1-17) ］
Diluted earnings per share(I) 0.2379 0.5285
÷(12+18)
20= ［ 3+(15-16)×(1-17) ］
Diluted earnings per share(II) 0.2184 0.2004
÷(12+18)
Basic earnings per share and diluted earnings per share decreased over the same period of last year mainly due
to additional share sales of this year brought growth of total share capital of the Company, and we had no
income from financial asset available for sale.
45.Other comprehensive income
Amount for this Amount for same
Item
period period of last
1. gains (losses) arising from financial assets available for sale - -45,774.18
Less: affect of income tax arising from financial assets
- -6,866.13
available for sale
Net, written in other comprehensive income inprevious
- 105,412,229.69
peiord and carried forward to gains and lossesin current period
Subtotal - -105,451,137.74
2. Share in other comprehensive income of invested units by
- -
equity method
Less: affect of income tax arising from Share in other
- -
comprehensive income of invested units by equity method
Net, written in other comprehensive income
inprevious peiord and carried forward to gains and lossesin - -
current period
Subtotal - -
3. gains (losses) arising from cash flow hedge instruments - -
Less: affect of income tax arising from cash flow hedge
- -
instruments
151
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Net, written in other comprehensive income
inprevious peiord and carried forward to gains and lossesin - -
current period
Adjustment, converted to initial recognization amount
- -
of projects in hedge
Subtotal - -
4. Conversion difference arising from foreign currency
- -
financial statement
Less: net, carried forward to gains and losses in current
- -
period after disposing overseas operation
Subtotal - -
5. Others - -
Less: affect of income tax arising from others which are
- -
written in other comprehensive income
Net, others written in other comprehensive income
inprevious peiord and carried forward to gains and lossesin - -
current period
Subtotal - -
Total - -105,451,137.74
Other comprehensive income decreased over the same period of last year mainly due to the financial assets
avaiable for sale sold in the last year was calculated by fair value while in this period we had no such financial
asset calculated by fair value.
46.Items to cash flow statement
(1)Cash received(paid) from(for) other activities relating to operation/investment/financing
1)Cash received from other activities relating to operation
Item Amount for this period
Subsidies for energy-saving and benefiting people 105,114,545.73
Other received temporary accounts payable 38,095,454.27
Received deposit 3,161,124.49
Other income from governmental subsidies 2,168,018.25
Leasing income 2,024,494.16
Supporting expenses received by customers and services 1,776,243.22
Others 2,507,755.73
Total 154,847,635.85
2)Cash paid for other activities relating to operation
Item Amount for this period
Market support fee paid 175,012,491.31
Advertisement paid 40,379,218.20
Installation fee paid 34,834,525.88
Water and electricity fee paid 33,251,082.04
Exhibition fee paid 18,648,473.20
Lease expenses paid for storage 13,250,735.56
152
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Borrowings paid for staffs 12,745,457.00
Domestic business trip expenses paid 12,226,698.67
Delivery expenses paid for products 10,129,920.57
Expenses paid for business activities 8,932,831.03
Expenses paid for organization of meetings 6,616,725.40
Housing rent paid 4,228,946.55
Expenses paid for middle trial 4,016,925.12
Bus fare paid 3,829,857.00
Expenses for office business 3,146,872.14
Expenses paid for telephone 3,073,356.02
Expenses paid for verification and authentification 2,268,415.81
Insurance paid 2,179,030.83
Expenses paid for maintenance of equipments 2,139,858.21
Expenses paid for support for services 1,882,653.08
Medical expenses paid 1,811,556.07
Vehicles expenses paid 1,791,738.25
Information consultance expenses paid 1,653,421.60
Other charge paid 15,488,515.88
Total 413,539,305.42
3)Cash received from other activities relating to investment
Item Amount for this period
Interest income arising from bank savings 6,984,392.49
Deposit received from projects bid 896,370.00
Total 7,880,762.49
4)Cash paid for other activities relating to investment: Nil.
5)Cash received from other activities relating to financing: Nil.
6)Cash paid for other activities relating to financing: Nil.
(2) Suplementary information about consolidated cash flow statement
Amount for this Amount for same
Item
period period of last year
1 . Net profit is adjusted to cash flow of operation
activities:
Net profit 121,327,936.65 218,939,825.45
Add: provision for depreciation of assets 23,097,600.28 15,529,869.18
Depreciation of fixed assets, consumption of oil gas assets
60,809,710.71 61,524,991.55
and depreciation of productive biological assets
Amortization of intangible assets 20,521,678.01 16,152,537.26
Amortization of long-term retained expense 300,000.00
153
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Loss from disposal of fixed assets, intangible assets and
-9,089,799.67 -1,704,426.03
other long term assets(gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed -
Loss from change of fair value(gain is listed with “-”) -
Financial expense (gain is listed with “-”) -15,240,641.58 1,268,294.65
Investment loss (gain is listed with “-”) -332,396.24 -137,640,762.06
Decrease of deferred income tax assets (increase is listed
-26,012,646.78 -8,396,979.87
with “-”)
Increase of deferred income tax liabilities (decrease is listed
- -18,609,024.30
with “-”)
Decrease of inventories (increase is listed with “-”) -126,385,347.03 -207,036,484.71
Decrease of operational accounts receivable (increase is
-1,632,961,065.03 -1,483,491,254.32
listed with “-”)
Increase of operational accounts payable (decrease is listed
1,039,931,274.87 1,379,172,191.19
with “-”)
Others - -
Net cash flow arising from operation activities -544,333,695.81 -163,991,222.01
2. Siginificant investment and financing activities with no
reference to cash collection and payment:
Debt convert to capital -
Convertible bond due within one year -
Fixed assets leased in by financing -
3. Net change in cash and cash equivalent:
Balance of cash at period-end 1,479,457,104.15 503,480,177.19
Less: Balance of cash at period-begin 1,986,440,504.29 747,572,445.88
Add: Balance of cash equivalent at period-end -
Less: Balance of cash equivalent at period-begin -
Net increase in cash and cash equivalent -506,983,400.14 -244,092,268.69
(3) Relevant information about acquiring or disposing subsidiaries or other operation units in previous years
Amount for
Amount for this
Item same period of
period
last year
Relevant information about acquiring subsidiaries or other
operation units
1. Price for acquiring subsidiaries or other operation units 1,647,467.25 -
2. Cash and cash equivalent paid for acquiring subsidiaries or
1,647,467.25 -
other operation units
Less: Cash and cash equivalent held by subsidiaries or
668,779.28 -
other operation units
154
Hefei Meiling Co., Ltd. Semi-annual Report 2011
3. Net cash paid for acquiring subsidiaries or other operation
978,687.97 -
units
4. Acquiring net assets of subsidiaries - -
Current assets - -
Non-current assets - -
Current liabilities - -
Non-current liabilities - -
Relevant information about disposing subsidiaries or other
operation units
1. Price for disposing subsidiaries or other operation units - -
2. Cash and cash equivalent received from disposing subsidiaries
- -
or other operation units
Less: Cash and cash equivalent held by subsidiaries or other
- -
operation units
3. Net cash received from disposing subsidiaries or other
- -
operation units
4. Disposing net assets of subsidiaries - -
Current assets - -
Non-current assets - -
Current liabilities - -
Non-current liabilities - -
(4) Cash and cash equivalent
Amount for this Amount for same
Item
period period of last year
Cash 1,479,457,104.15 503,480,177.19
Including: stock cash 1,836,692.45 182,525.20
Bank deposit available for payment at any time 1,124,042,167.14 236,348,632.63
Other monetary capital available for payment at any
353,578,244.56 266,949,019.36
time
Deposit in central bank available for payment - -
Deposit from other banks - -
Call loans to banks - -
Cash equivalent - -
Including: bond investment due within 3 months - -
Balance of cash and cash equivalent at period-end 1,479,457,104.15 503,480,177.19
Including: restricted cash and cash equivalent used by
353,578,244.56 237,171,551.36
parent company or subsidiaries
47.Items to statement of change of shareholders’equity
(1) “Other ” items of amount at end of last year : Nil adjusted
(2)Other projects with significant amount in “III. (VII) Other ” items listed in Statement of Changes of
Shareholdres’ Equity: Nil
155
Hefei Meiling Co., Ltd. Semi-annual Report 2011
IX. Related parties and related transaction
(I)Relationship of related parties
1. Parent company and terminal controller
(1) Parent company and terminal controller
Place of Legal
Parent company and Type of Nature of
registrati represent Organization code
terminal controller entity business
on ative
Sichuan Changhong Electrical Stock Manufact Zhao
Mianyang 20541230-8
Appliance Co., Ltd. company ure and Yong
Sichuan Changhong Electrical Limited Manufact Zhao
Mianyang 72081866-0
Group Co., Ltd. company ure and Yong
The terminal controller, Mianyang SASAC, provided no financial statement public. The company with financial
statement provided and superior than Parent Company similarly closely was Changhong Group.
(2)Register capital and change thereof of parent company
Increase Decrease
Amount at Amount at
Parent company during the during the
year-begin period-end
period period
Sichuan Changhong Electrical
2,847,317,127 711,829,282 - 3,559,146,409
Appliance Co., Ltd.
(3)Shares held by the parent company and its changes on equity (including shares held directly/indirectly)
Parent company Amount of shares held Shareholding ratio（%）
Amount at Amount at Ratio at Ratio at
period-end year-begin period-end year-begin
Sichuan Changhong Electrical
130,553,267 130,553,267 24.62 24.62
Appliance Co., Ltd.
2.the first and second class of subsidiary
(1)subsidiaries
The first and second class of Type of Place of Nature of Legal Organization
subsidiaries entity registration business representative code
Zhongke Meiling Cryogenics Limited Manufacture of
Mianyang Wang Yong 74309835-2
Limited Company company home appliancee
Jiangxi Meiling Refrigeration Limited Manufacture of
Jingdezhen Wang Yong 66748284-5
Co., Ltd. company home appliancee
Limited
Jiangxi Meiling Electric Manufacture and
liability Jingde Town Wang Yong 57364516-4
Appliance LLC sales
company
Mianyang Meiling Refrigeration Limited Manufacture of
Mianyang Li Daijiang 68610561-5
Co., Ltd. company home appliancee
Hefei Meiling Appliance Limited Manufacture of
Hefei Wang Yong 69573778-8
Marketing Co., Ltd. company home appliancee
156
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Sichuan Changhong Air Limited Manufacture of
Mianyang Li Jin 68236997-1
Conditioner Co., Ltd. company home appliancee
Zhongshan Changhong Limited Manufacture of
Zhongshan Li Jin 728773292
Appliance Co., Ltd. company home appliancee
Hefei Meiling Group Holding Limited Manufacture of
Hefei Wang Jiazhang 14918553-3
Co., ltd. company home appliancee
Hefei Meiling Home Appliances Limited Manufacture and
Hefei Jiang Changzhi 750970495
Industry and Trade Co., Ltd company sales
Hefei Maidstone Home Limited Manufacture and
Hefei Jiang Changzhi 76900598-6
Appliances Co., Ltd company sales
Meiling Yingkaite Home Limited Manufacture and
Hefei Huang danian 76082307-7
Appliance (Hefei) Co., Ltd company sales
Hefei Yingkaite Electric Limited Manufacture and
Hefei Liu shiqun 666245346
ApplianceCo., Ltd company sales
HefeiMeiling Environmental Limited Manufacture and
Hefei Sun Qingfeng 77495478-0
Packaging Material Co., Ltd company sales
HefeiMeiling Non-ferrous Metal Limited Manufacture and
Hefei Huang danian 14911702-0
Products Co., Ltd company sales
HefeiMeiling Precise Pipe Limited Manufacture and
Hefei Wu Yong 75854571-7
IndustryCo., Ltd company sales
HefeiMeiling Packaging Limited Manufacture and
Hefei Huang danian 61030893-4
ProductsCo., Ltd company sales
Limited Manufacture and
HefeiMeiling White Home Hefei Qin Tangzong 56897134-4
liability sales
Appliances MarketingCo., Ltd
Limited
Manufacture and
Xinxiang Meiling Electric liability Xinxiang Qin Tangzong 55572305-0
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
LuoheMeiling Electric Appliance liability Luohe Guo Gang 56648306-4
sales
Marketing Co., Ltd company
Limited
Manufacture and
ChangchunMeiling Electric liability Changchun Tang Yiliang 56392618-1
sales
Appliance Marketing Co., Ltd company
Limited
HengyangMeiling Electric Manufacture and
liability Hengyang Zhu Pu 56765228-8
Appliance Marketing Co., Ltd sales
company
Limited
Manufacture and
WuhuMeiling Electric Appliance liability Wuhu Cui Lianbing 56750847-0
sales
Marketing Co., Ltd company
157
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Limited
Manufacture and
BengbuMeiling Electric liability Bengbu Cui Lianbing 56750904-3
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
NanchangMeiling Electric liability Nanchang Zhu Pu 56629403-6
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
JingzhouMeiling Electric liability Jingzhou Zhu Pu 56549519-4
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Liu’anMeiling Electric liability Liu’an Cui Lianbing 56753250-X
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
WuhanMeiling Electric liability Wuhan Zhu Pu 56559357-9
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
ShijiazhuangMeiling Electric liability Shijiazhuang Tang Yiliang 56891178-X
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
ZhengzhouMeiling Electric liability Zhengzhou Guo Gang 56860761-4
sales
Appliance Marketing Co., Ltd company
Limited Manufacture and
GuiyangMeiling Electric Guiyang Fang Rongxin 56920577-2
liability sales
Appliance Marketing Co., Ltd
Limited
Manufacture and
FuzhouMeiling Electric liability Fuzhou Zhu Pu 56928167-9
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
ShenyangMeiling Electric liability Shenyang Tang Yiliang 56469998-8
sales
Appliance Marketing Co., Ltd company
Limited
ChengduMeiling Electric Manufacture and
liability Chengdu Fang Rongxin 56719153-0
Appliance Marketing Co., Ltd sales
company
MianyangMeiling Electric Limited Manufacture and
Mianyang Fang Rongxin 56764282-1
Appliance Marketing Co., Ltd liability sales
NanjingMeiling Electric Limited Manufacture and
Nanjing Qin Tangzong 56722678-0
Appliance Marketing Co., Ltd company sales
Limited
Manufacture and
ChangshaMeiling Electric liability Changsha Zhu Pu 56768891-8
sales
Appliance Marketing Co., Ltd company
158
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Limited
Manufacture and
TaiyuanMeiling Electric liability Taiyuan Tang Yiliang 56847226-2
sales
Appliance Marketing Co., Ltd company
NantongMeiling Electric Limited Manufacture and
Nantong Zou Wenhui 57038621-6
Appliance Marketing Co., Ltd company sales
Limited
Manufacture and
UrumqiMeiling Electric liability Urumqi Fang Rongxin 56887356-8
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Hangzhou Meiling Electric liability Hangzhou Zou Wenhui 56877254-8
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
HarbinMeiling Electric liability Harbin Tang Yiliang 57190675-4
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
ChaohuMeiling Electric liability Chaohu Cui Lianbing 69739029-8
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Huhhot Meiling Electric liability Huhhot Tang Yiliang 56694949-3
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Lanzhou Meiling Electric liability Lanzhou Fang Rongxin 57160810-8
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Neijiang Meiling Electric liability Neijiang Fang Rongxin 57070719-8
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
BeijingMeiling Electric liability Beijing Qin Tangzong 57324500-5
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Xi’an Meiling Electric Appliance liability Xi’an Fang Rongxin 57022777-6
sales
Marketing Co., Ltd company
Limited
Manufacture and
Chongqing Meiling Electric liability Chongqing Fang Rongxin 56991483-5
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Shanghai Meiling Electric liability Shanghai Zou Wenhui 56964771-4
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
Tianjin Meiling Electric liability Tianjin Tang Yiliang 56932409-3
sales
Appliance Marketing Co., Ltd company
159
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Limited
Manufacture and
Guangzhou Meiling Electric liability Guangzhou Zhu Pu 57404406-1
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
KunmingMeiling Electric liability Kunming Fang Rongxin 56881940-6
sales
Appliance Marketing Co., Ltd company
Limited
Manufacture and
JinanMeiling Electric Appliance liability Jinan Qin Tangzong 57556057-8
sales
Marketing Co., Ltd company
(2)Register capital and change thereof of subsidiaries
The first and second class of Amount at Increase during the Decrease during Amount at
subsidiaries year-begin period the period period-end
Zhongke Meiling Cryogenics Limited
60,000,000.00 - - 60,000,000.00
Company
Jiangxi Meiling Refrigeration Co.,
40,000,000.00 - - 40,000,000.00
Ltd.
Jiangxi Meiling Electric Appliance
- 50,000,000.00 - 50,000,000.00
LLC
Mianyang Meiling Refrigeration Co.,
50,000,000.00 50,000,000.00 - 100,000,000.00
Ltd.
Hefei Meiling Appliance Marketing
55,000,000.00 - - 55,000,000.00
Co., Ltd.
Sichuan Changhong Air Conditioner
200,000,000.00 - - 200,000,000.00
Co., Ltd.
Zhongshan Changhong Appliance Co.,
80,000,000.00 - - 80,000,000.00
Ltd.
Hefei Meiling Group Holding Co., ltd. 80,000,000.00 - - 80,000,000.00
HefeiMeilingHome Appliances
5,000,000.00 - - 5,000,000.00
Industry and TradeCo., Ltd
Hefei Maidstone Home Appliance
3,980,000.00 - - 3,980,000.00
Co., Ltd
Meiling Yingkaite Home Appliance
24,793,100.00 - - 24,793,100.00
（Hefei）Co., Ltd
Hefei Yingkaite Electric Appliance 12,000,000.00 - - 12,000,000.00
160
Hefei Meiling Co., Ltd. Semi-annual Report 2011
HefeiMeiling Environmental
800,000.00 - - 800,000.00
Packaging Material Co., Ltd
HefeiMeiling Non-ferrous Metal
24,286,800.00 - - 24,286,800.00
Products Co., Ltd
HefeiMeiling Precise Pipe
1,000,000.00 - - 1,000,000.00
IndustryCo., Ltd
HefeiMeiling Packaging ProductsCo.,
18,400,000.00 - - 18,400,000.00
Ltd
HefeiMeiling White Home Appliances - 6,000,000.00 - 6,000,000.00
MarketingCo., Ltd
XinxiangMeiling Electric Appliance 3,500,000.00 - - 3,500,000.00
Marketing Co., Ltd
LuoheMeiling Electric Appliance 5,000,000.00 - - 5,000,000.00
Marketing Co., Ltd
ChangchunMeiling Electric Appliance 3,000,000.00 - - 3,000,000.00
Marketing Co., Ltd
HengyangMeiling Electric Appliance
3,000,000.00 - - 3,000,000.00
Marketing Co., Ltd
WuhuMeiling Electric Appliance
6,000,000.00 - - 6,000,000.00
Marketing Co., Ltd
BengbuMeiling Electric Appliance 3,000,000.00 - - 3,000,000.00
Marketing Co., Ltd
NanchangMeiling Electric Appliance - 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
JingzhouMeiling Electric Appliance
- 4,000,000.00 - 4,000,000.00
Marketing Co., Ltd
Liu’anMeiling Electric Appliance - 5,000,000.00 - 5,000,000.00
Marketing Co., Ltd
WuhanMeiling Electric Appliance
- 5,000,000.00 - 5,000,000.00
Marketing Co., Ltd
ShijiazhuangMeiling Electric
- 3,000,000.00 - 3,000,000.00
Appliance Marketing Co., Ltd
ZhengzhouMeiling Electric Appliance - 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
GuiyangMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
161
Hefei Meiling Co., Ltd. Semi-annual Report 2011
FuzhouMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
ShenyangMeiling Electric Appliance - 3,000,000.00 - 3,000,000.00
ChengduMeiling Electric Appliance
- 5,000,000.00 - 5,000,000.00
Marketing Co., Ltd
MianyangMeiling Electric Appliance
- 5,000,000.00 - 5,000,000.00
Marketing Co., Ltd
NanjingMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
ChangshaMeiling Electric Appliance
- 5,000,000.00 - 5,000,000.00
Marketing Co., Ltd
TaiyuanMeiling Electric Appliance
- 4,000,000.00 - 4,000,000.00
Marketing Co., Ltd
NantongMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
UrumqiMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
Hangzhou Meiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
HarbinMeiling Electric Appliance - 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
ChaohuMeiling Electric Appliance - 5,000,000.00 - 5,000,000.00
Marketing Co., Ltd
Huhhot Meiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
Lanzhou Meiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
Neijiang Meiling Electric Appliance - 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
BeijingMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
Xi’an Meiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
Chongqing Meiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
Shanghai Meiling Electric Appliance - 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
Tianjin Meiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
162
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Guangzhou Meiling Electric
- 5,000,000.00 - 5,000,000.00
Appliance Marketing Co., Ltd
KunmingMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
JinanMeiling Electric Appliance
- 3,000,000.00 - 3,000,000.00
Marketing Co., Ltd
(3)Shares held directly of subsidiary and its changes
Amount of shares held Shareholding ratio(%)
The first and second class of subsidiaries
Amount at Amount at Ratio at Ratio at
period-end year-begin period-end year-begin
Zhongke MeilingLow Temperature
42,000,000.00 42,000,000.00 70.00% 70.00%
TechnologyCo., Ltd
JiangxiMeilingZhilengCo., Ltd 36,000,000.00 36,000,000.00 90.00% 90.00%
JiangxiMeilingElectric ApplianceLLC 49,375,000.0 - 98.75% -
MianyangMeilingZhilengLLC 95,000,000.00 45,000,000.00 95.00% 90.00%
HefeiMeiling Electric Appliance Marketing
54,900,000.00 54,900,000.00 99.82% 99.82%
Co., Ltd
Sichuan Changhong Air-conditioner Co.,
200,000,000.00 200,000,000.00 100.00% 100.00%
Ltd
Zhongshan Changhong Electric
72,000,000.00 72,000,000.00 90.00% 90.00%
ApplianceCo., Ltd
Hefei Meiling Group Holdings Co., Ltd 80,000,000.00 80,000,000.00 100.00% 100.00%
HefeiMeilingHome Appliances Industry and
5,000,000.00 5,000,000.00 100.00% 100.00%
TradeCo., Ltd
Hefei Maidstone Home Appliance Co., Ltd 3,980,000.00 3,980,000.00 100.00% 100.00%
Meiling Yingkaite Home Appliance （Hefei）
24,793,100.00 24,793,100.00 100.00% 100.00%
Co., Ltd
Hefei Yingkaite Electric Appliance Company 12,000,000.00 12,000,000.00 100.00% 100.00%
HefeiMeiling Environmental Packaging
800,000.00 800,000.00 100.00% 100.00%
Material Co., Ltd
HefeiMeiling Non-ferrous Metal Products
24,286,800.00 24,286,800.00 100.00% 100.00%
Co., Ltd
HefeiMeiling Precise Pipe IndustryCo., Ltd 1,000,000.00 1,000,000.00 100.00% 100.00%
HefeiMeiling Packaging ProductsCo., Ltd 9,520,000.00 9,520,000.00 48.28% 48.28%
HefeiMeiling White Home Appliances
5,100,000.00 - 85.00% -
MarketingCo., Ltd
163
Hefei Meiling Co., Ltd. Semi-annual Report 2011
XinxiangMeiling Electric Appliance
2,065,000.00 1,365,000.00 59.00% 39.00%
Marketing Co., Ltd
LuoheMeiling Electric Appliance Marketing
1,850,000.00 1,850,000.00 37.00% 37.00%
Co., Ltd
ChangchunMeiling Electric Appliance
2,910,000.00 2,910,000.00 97.00% 97.00%
Marketing Co., Ltd
HengyangMeiling Electric Appliance
1,230,000.00 1,080,000.00 41.00% 36.00%
Marketing Co., Ltd
WuhuMeiling Electric Appliance Marketing
2,160,000.00 2,160,000.00 36.00% 36.00%
Co., Ltd
BengbuMeiling Electric Appliance
2,550,000.00 2,550,000.00 85.00% 85.00%
Marketing Co., Ltd
NanchangMeiling Electric Appliance
1,080,000.00 - 36.00% -
Marketing Co., Ltd
JingzhouMeiling Electric Appliance 2,400,000.00 - 60.00% -
Marketing Co Ltd
Liu’anMeiling Electric Appliance Marketing
1,800,000.00 - 36.00% -
Co., Ltd
WuhanMeiling Electric Appliance Marketing
4,550,000.00 - 91.00% -
Co., Ltd
ShijiazhuangMeiling Electric Appliance
1,080,000.00 - 36.00% -
Marketing Co., Ltd
ZhengzhouMeiling Electric Appliance
1,080,000.00 - 36.00% -
Marketing Co., Ltd
GuiyangMeiling Electric Appliance
780,000.00 - 26.00% -
Marketing Co., Ltd
FuzhouMeiling Electric Appliance
2,970,000.00 - 99.00% -
Marketing Co., Ltd
ShenyangMeiling Electric Appliance
2,844,000.00 - 94.80% -
Marketing Co., Ltd
ChengduMeiling Electric Appliance
4,170,000.00 - 83.40% -
Marketing Co., Ltd
MianyangMeiling Electric Appliance
2,600,000.00 - 52.00% -
Marketing Co., Ltd
NanjingMeiling Electric Appliance 2,970,000.00 - 99.00% -
Marketing Co., Ltd
ChangshaMeiling Electric Appliance
1,800,000.00 - 36.00% -
Marketing Co., Ltd
TaiyuanMeiling Electric Appliance
1,590,000.00 - 39.75% -
Marketing Co., Ltd
NantongMeiling Electric Appliance
1,740,000.00 - 58.00% -
Marketing Co., Ltd
164
Hefei Meiling Co., Ltd. Semi-annual Report 2011
UrumqiMeiling Electric Appliance
2,700,000.00 - 90.00% -
Marketing Co., Ltd
Hangzhou Meiling Electric Appliance
2,655,000.00 - 88.50% -
Marketing Co., Ltd
HarbinMeiling Electric Appliance Marketing
1,080,000.00 - 36.00% -
Co., Ltd
ChaohuMeiling Electric Appliance
2,500,000.00 1,000,000.00 50.00% 18.00%
Marketing Co., Ltd
Huhhot Meiling Electric Appliance
1,650,000.00 - 55.00% -
Marketing Co., Ltd
Lanzhou Meiling Electric Appliance
1,215,000.00 - 40.55% -
Marketing Co., Ltd
Neijiang Meiling Electric Appliance
2,400,000.00 - 80.00% -
Marketing Co., Ltd
BeijingMeiling Electric Appliance
2,970,000.00 - 99.00% -
Marketing Co., Ltd
Xi’an Meiling Electric Appliance Marketing 1,830,000.00 - 61.00% -
Co., Ltd
Chongqing Meiling Electric Appliance
2,550,000.00 - 85.00% -
Marketing Co., Ltd
Shanghai Meiling Electric Appliance
2,970,000.00 - 99.00% -
Marketing Co., Ltd
Tianjin Meiling Electric Appliance
2,565,000.00 - 85.50% -
Marketing Co., Ltd
Guangzhou Meiling Electric Appliance 4,300,000.00 - 86.00% -
Marketing Co., Ltd
KunmingMeiling Electric Appliance 1,395,000.00 - 46.50% -
Marketing Co., Ltd
JinanMeiling Electric Appliance Marketing 1,080,000.00 - 36.00% -
Co., Ltd
3.Joint enterprises and affiliated enterprises
Type of Place of Nature of Legal Registered Shareholding Organization
Invested units
entity registration business representative capital ratio code
Joint-ventures(nil)
Associates
Real estate
Hefei Xingmei Assets Limited
Hefei management, Huang Youzhi 1 million 48.28% 57851196-6
Management Co., Ltd company
leasing
HefeiMeiling Solar Limited Feidong Manufacture and
Ren Sheming 9.5 million 32.751% 73733490-2
Technology LLC company County sales
165
Hefei Meiling Co., Ltd. Semi-annual Report 2011
4.Other related parties
Type of Organization
Related parties Main business
relation code
Other enterprises under control from the same parent company or terminal controller
PT.CHANGHONG ELECTRIC INDONESIA Sales -
Chengdu Lejiayi Trade Co., Ltd. Sales 79782546-3
Fuzhou Lejiayi Trade Co., Ltd. Sales 67652028-4
Guangdong Changhong Electron Co., Ltd. Purchase , Sales 78940429-8
Guangdong Changhong Digital Technology Co., Utilities provided 78940429-8
Hefei Changhong Industrial Co., Ltd. Sales 66621592-1
Huayi Compressor Co., Ltd. Purchase , Sales 70562223-x
Jinan Lejiayi Trade Co., Ltd. Sales 67227469-6
Jiangxi Changhong Electrical Technology Sales 667483178
Kunming Yijiahong Trade Co., Ltd. Sales 67656328-4
Lejiayi Chain Management Co., Ltd. Sales 66535156-9
Mianyang Hongfa Mould Design Manufacture Purchase , Sales 79582077-3
Mianyang Lejiayi Trade Chain Co.,Ltd. Sales 665391552
Sichuan Hong'ou Display Co., Ltd. Sales 66275681-9
Sichuan Hongyue Power Co., Ltd. Sales 68237616-X
Sichuan Hongshi Display Technology Limited Sales 66968647-0
Sichuan Hongxin Software Co., Ltd. Purchase ,labor 671440445
Sichuan Changhong Packing Business Limited Purchase 79399834-0
Sichuan Changhong Power Supply Limited Purchase 205418582
Sichuan Changhong Electrical System Limited Sales 779839036
Sichuan Changhong Dongyuan Precise Purchase 795816686
Sichuan Changhong International Hotel Co., Ltd. Sales 720818652
Sichuan Changhong Jijia Precise Co., Ltd. Purchase , Sales 793998375
Sichuan Changhong Precise Electrical Purchase, Sales 79399836-7
Sichuan Changhong Minsheng Logistics Limited Transportation, 79785892-7
Sichuan Changhong Mould Science & Purchase , Sales 782291526
Sichuan Changhong Equipment Science & Purchase 793998359
Sichuan Changhong Xinrui Science & Purchase 66276762-2
Sichuan Changhong New Energy Science & Purchase , Sales 79399394-5
Taiyuan Lejiayi Trade Chain Co., Ltd. Sales 779841582
Tianjin Lejiayi Trade Co., Ltd. Sales 67371694-3
Changhong Appliance (Australia)Co., Ltd. Sales -
Zhongshan Guanghong Mould Technology Co., Purchase 69226840
Chongqing Hong Life Trade Co., Ltd. Sales 69226840
081 Electronic Group Sichuan Liyuan Electronic Purchase 205809540
Mianyang Hongrun Electronic Co., Ltd. Purchase 769966197
Changhong (Hong Kong)Trade Co.,Ltd. Sales -
Sichuan Huafeng Group Co., Ltd. Sales 20540125-4
166
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Type of Organization
Related parties Main business
relation code
Sichuan Kuaiyidian Apparatus Service ChainCo., Sales 66744793
Sichuan Hongyu Metal Production Co., Ltd. Purchase 665361804
Associates of controlling shareholders and actual controllers
BVCH Optronics (Sichuan) Corp Purchase 69226840-2
Sichuan Jinghong Packing Product Co.,Ltd. Purchase 779814584
Sichuan Changhe Science & Technology Co., Purchase 777909555
Sichuan Changxin Refrigeration Parts Co., Ltd. Purchase , Sales 779841582
Joint-ventures and associates
Guangyuan Meiling Electric Appliance Sales 69915460-0
ChangzhouMeiling Electric Appliance Marketing Sales 55026803-6
Guangxi MeilingHomeElectric ApplianceCo., Sales 55225094-8
Haozhou Meiling Electric Appliance Marketing Sales 69896652-7
Xuancheng Meiling Electric Appliance Sales 55631828-4
Jiujiang Meiling Electric Appliance Marketing Sales 69609608-9
Buyang Meiling Electric Appliance Marketing Sales 56635286-5
(II)Related transaction
1.Purchase commodities
Amount of same period of
Amount of this period
last year
Type of related parties and names of
Amount
related parties Proportio Amount Proportio
(RMB
n(%) (RMB ‘0000) n(%)
‘0000)
parent company and terminal controller
Including: Sichuan Changhong Electrical
4,325.87 0.79 3,665.57 0.94
Appliance Co., Ltd.
Other enterprises under control from the
same parent company or terminal
Including:Sichuan Changhong Minsheng
- - 2,859.19 0.74
Logistics Co., Ltd
Huayi Compressor Co., Ltd. 27,599.97 5.07 20,457.92 5.27
Sichuan Changhong Mould Science
22,273.94 4.09 11,292.04 2.91
& Technology Co., Ltd.
Sichuan Changhong Jijia Precise 6,469.11 1.19 8,973.03 2.31
Co Ltd
Sichuan Hongxin SoftwareCo., Ltd - - 70.00 0.02
Mianyang Hongfa Mould Design
3.52 0.00 10.59 0.00
Manufacture Co., Ltd.
Sichuan Changhong Packing
1,380.62 0.25 1,618.73 0.42
Business Limited
167
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount of same period of
Amount of this period
last year
Type of related parties and names of
Amount
related parties Proportio Amount Proportio
(RMB
n(%) (RMB ‘0000) n(%)
‘0000)
Sichuan Changhong Power Supply
- - 0.39 0.00
Limited
Sichuan Changhong Dongyuan
2,118.58 0.39 1,886.66 0.49
Precise Equipment Co., Ltd.
Sichuan Changhong Precise
86.83 0.02 119.53 0.03
Electrical Technology Limited Company
Sichuan Changhong Equipment
1,315.90 0.24 1,083.60 0.28
Science & Technology Co., Ltd.
081 Electronic Group Sichuan Liyuan
526.56 0.10 - -
Electronic Co., ltd.
Sichuan Changhong New Energy
39.70 0.01 30.14 0.01
TechnologyCo., Ltd
Sichuan Liyuan ElectronicCo., Ltd - - 375.08 0.10
Mianyang Hongrun Electricals Co.,
724.98 0.13 - -
Ltd.
Guangdong Changhong Electricals
46.76 0.01 1.05 0.00
Co., Ltd.
Zhongshan Guanghong 31.97 0.00 10.7 0.00
Mould&Plastic Science & Technology Co
Associates of controlling shareholders and
actual controllers:
Including: Sichuan Changhe Science &
78.47 0.01 79.40 0.02
Technology Co., Ltd.
Sichuan Changxin Refrigeration
8,227.50 1.51 238.83 0.06
Parts Co., Ltd.
Sichuan Jinghong Packing Product
1,697.76 0.31 413.61 0.11
Co.,Ltd.
Sichuan Hongyu Metal Manufacture LLC 45.79 0.01 35.25 0.01
Total 76,993.83 14.13 55,699.25 14.34
Concerning good purchasing of the Company, bidding purchase for goods with over RMB 10,000 while
bargaining purchase for goods with less than RMB 10,000. The related parties and non-related parties all in the
procedures of bidding with the same pricing policy.
2.Sales of commodities
Amount of this Amount of same
Type of related parties and names of related parties
period period of lsat year
168
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount Ratio Amount Ratio
parent company and terminal controller
Including: Sichuan Changhong Electrical Appliance
62,871.58 11.49 57,743.39 12.62
Co., Ltd.
Other enterprises under control from the same
parent company or terminal controller
Including：PT.CHANGHONG ELECTRIC IND 48.33 0.01 3,043.97 0.67
Sichuan Changhong Jijia Precise Co., Ltd. 2,102.69 0.38 2,152.78 0.47
Sichuan Changhong Mould Science &
5,290.03 0.97 4,013.21 0.88
Technology Co., Ltd.
Sichuan Hongshi Display Technology Limited 105.59 0.02 - -
Mianyang Lejiayi Trade Chain Co.,Ltd. 464.51 0.08 95.35 0.02
Jiangxi Changhong Electrical Technology
- - 6.76 0.00
Development Co., Ltd.
Sichuan Changhong Precise Electronic TechnologyCo., - - 125.87 0.03
Sichuan Changhong Xinrui TechnologyCo., Ltd 167.59 0.03 62.61 0.01
Sichuan Changhong International Hotel Co., 26.41 0.00 0.39 0.00
Chongqing Hong Life Trade Co., Ltd. 82.11 0.02 25.25 0.01
Huayi Compressor Co., Ltd. 2.74 0.00 - -
Sichuan Changhong Equipment Science & - - 13.33 0.00
Kunming Yijiahong Trade Co., Ltd. - - 5.93 0.00
Sichuan Changhong Electrical System Limited - - 3.09 0.00
Fuzhou Lejiayi Trade Co., Ltd. 0.20 0.00 -1.05 0.00
Tianjin Lejiayi Trade Co., Ltd. 1.65 0.00 - -
Sichuan Hong'ou Display Co., Ltd. - - 458.59 0.10
Sichuan Changhong New Energy Science & 41.09 0.01 - -
Sichuan Changhong Packaging Publishing Co., 0.38 0.00 10.95 0.00
Guangdong Changhong Electronic Co., Ltd - - 47.60 0.01
Guangdong Changhong Digital TechnologyCo., Ltd - - 3.92 0.00
Sichuan Changhong Minsheng Logistics LLC 23.85 0.00 18.46 0.00
Sichuan Changhong Dongyuan Precise Equipments - - 0.44 0.00
Wandao Network TechnologyCo., Ltd 113.53 0.02 - -
Changzhi Opto-electrical （Sichuan ）Co., Ltd 30.00 0.01 - -
Sichuan Changhong Gerun Renewable Resource Co., 13.53 0.00 - -
Changhong Electric Appliance（Austria）Co., Ltd 1,012.98 0.19 221.03 0.05
Sichuan Kuaiyidian Electric ApplianceService Chain 264.84 0.05 0.38 0.00
Zhongshan Guanghong Mould Plastic TechnologyCo., 27.19 0.00 10.00 0.00
Joint-ventures and associates
Guangyuan Meiling Apparatus marketing Co., 1,318.83 0.24 1,386.35 0.30
Changzhou Meiling Apparatus marketing Co., 1,149.93 0.21 636.63 0.14
169
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Guangxi Meiling Apparatus marketing Co., 7,642.73 1.40 939.60 0.21
Haozhou Meiling Apparatus marketing Co., Ltd. 2,161.30 0.39 1,671.99 0.37
Xuancheng Meiling Apparatus marketing Co., 2,247.09 0.41 - -
Jiujiang Meiling Apparatus marketing Co., Ltd. 4,123.74 0.75 1,716.17 0.38
Buyang Meiling Electric Appliance Marketing Co., Ltd 6,561.33 1.20 - -
Total 97,895.77 17.88 76,836.06 16.79
Business contact with related parties are perfom under normal market business regulation and has the same
situation towards other enterprises. Concerning the price purchase/sales and other labor provided between the
Company and relate parties, pricing according to national price, if applicable; pricing according to market price
if without no national pricing and without marketing pricing , than the price will negotiaged by two parties due
to the principle of actual cost plus reasonable expenses. The two parties will negotiated the price on special
service while suiting no the principle of “Cost plus expense”.
3.Related leasing
Original value of
Lessor Lessee Assets for leasing
leasing assets
Sichuan Changhong Mould Injection mold plant of 6885 m2,
Hefei Meiling Co., Ltd. steel-made shet of 4590 m2 3,146,929.72
Plastic technology Co., Ltd.
Sichuan Changhong Jijia Pricise Sheet metal plant of 3240 m2
Hefei Meiling Co., Ltd. 2,648,088.00
Co., Ltd.
Sichuan Changhong 620#、621#、622# Plant of Puming
Mianyang Meiling Refrigeration District, totally 51,615m2 7.8 yuan
Minsheng Logistics per month per square 26,669,311.34
Co., Ltd.
Limited Company
Sichuan Changhong
Total areas of plants,
Electric Sichuan Changhong
warehousesand public houses is 81,516,899.89
ApplianceHoldingsCo., Air-conditioner Co., Ltd
72231 square meters
Ltd
Sichuan Changhong
HarbinMeiling Electric Appliance
Electronic Group Office places 7,690,671.80
Marketing Co., Ltd
Co., Ltd
Zhongshan Changhong Guangdong Changhong Electonic
Office building 6,582,644.93
Appliance Co., Ltd. Co., Ltd.
Zhongshan Changhong Guangdong Changhong
Office building 6,582,644.93
Appliance Co., Ltd. DigitalTechnology Co., Ltd.
Sichuan Changhong Minsheng
Zhongshan Changhong
Logistics Limited Company, Office building 6,582,644.93
Appliance Co., Ltd.
Zhongsahn Branch
Zhongshan Changhong
Sichuan Kuaiyidian Electric
Electric ApplianceCo., Office building 6,582,644.93
ApplianceService Chain Co., Ltd
Ltd
Total 148,002,480.47
(Continued)
Date for Accordance for
Date start for Rental income Influence on the Company by
termination of recognization of rental
leasing (expense) rental income
leasing income
170
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Amount was small such that no
2011-1-1 2011-12-31 1,294,380.00 Plant leasing contract
material influence arised
Amount was small such that no
2011-1-1 2011-12-31 466,560.00 Plant leasing contract
material influence arised
The signed leasing All the plants of the
2011-1-1 2011-12-31 2,415,582.00 contract: 7.8 yuan/M2 per Companyare leased to
month Changhong Minsheng Logistics
In the light of contract,
the counterpart issues
Expenses increased in this
2011-1-1 2011-12-31 5,899,077.12 calculation settle invoice
period may add the cost
Lease contract Amount was small such that no
2011-1-1 2011-12-31 80,000.00
material influence arised
Amount was small such that no
2011-1-1 2011-12-31 442,701.66 RMB10.96 / m2 monthly
material influence arised
Amount was small such that no
2011-1-1 2011-12-31 84,442.92 RMB10.96 / m2 monthly
material influence arised
Amount was small such that no
2011-1-1 2011-12-31 18,281.76 RMB10.96 / m2 monthly
material influence arised
10.96 yuan per square Amount was small such that no
2011-1-1 2011-12-31 15,547.74
meter material influence arised
Total 10,716,573.20
4. Related guarantee
Maximized Date start Due date Whether
Party providing guarantee Party receiving guarantee guarantee for for implemented
amount guarantee guarantee or not
Hefei Meiling Co., Ltd. Sichuan Changhong Air-conditioner 80,000,000 2010-6-1 2011-5-31 No
Hefei Meiling Co., Ltd. Zhongke Meiling Cryogenics Limited 10,000,000 2010-6-8 2011-6-8 Yes
Hefei Meiling Co., Ltd. Zhongke Meiling Cryogenics Limited 8,000,000 2010-8-1 2011-8-1 No
Hefei Meiling Co., Ltd. Zhongke Meiling Cryogenics Limited 12,000,000 2010-8-1 2011-8-1 No
HefeiMeilingHoldingsCo., Ltd Zhongshan Changhong Electric 50,000,000 2011-4-11 2012-4-10 No
HefeiMeiling Non-ferrous Metal
HefeiMeilingHoldingsCo., Ltd 17,000,000 2011-6-10 2012-6-10 No
Products Co., Ltd
HefeiMeilingGroup Meiling Yingkaite Home Appliance 10,000,000 2010-3-22 2011-3-22 Yes
HefeiMeilingGroup Meiling Yingkaite Home Appliance 4,000,000 2009-6-22 2012-6-22 No
HefeiMeilingGroup Hefei Yingkaite Electric 2,000,000 2009-6-22 2012-6-22 No
HefeiMeilingGroup HefeiMeiling Packaging ProductsCo., 10,000,000 2010-7-9 2011-7-9 No
HefeiMeilingGroup HefeiMeiling Precise Pipe 3,500,000 2010-2-24 2011-2-24 Yes
HefeiMeilingGroup HefeiMeiling Non-ferrous Metal
2,000,000 2009-3-30 2011-3-30 Yes
Holdings Co., Ltd Products Co., Ltd
HefeiMeilingGroup HefeiMeiling Non-ferrous Metal
8,050,000 2010-4-9 2011-4-9 Yes
Holdings Co., Ltd Products Co., Ltd
Zhongke Meiling Low
HefeiMeilingHoldingsCo., Ltd 30,000,000 2010-6-8 2012-6-8 No
Temperature Technology LLC
171
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Sichuan Changhong
HefeiMeilingHoldingsCo., Ltd 80,000,000 2010-6-15 2012-6-15 No
Air-conditioner Co Ltd
Sichuan Changhong Electrical
Hefei Meiling Co., Ltd. 50,000,000 2010-7-30 2011-7-29 No
Group Co., Ltd.
Sichuan Changhong Electrical
Hefei Meiling Co., Ltd. 35,000,000 2009-5-19 2011-5-19 Yes
Group Co Ltd
Sichuan Changhong Electrical
Hefei Meiling Co., Ltd. 210,000,000 2009-1-4 2011-1-4 Yes
Group Co., Ltd.
Sichuan Changhong Electrical
Hefei Meiling Co., Ltd. 80,000,000 2010-5-15 2012-5-15 No
Group Co., Ltd.
Total 701,550,000
(1) On June 1, 2010, the Company entered into Contract of Guarantee under the Debt Ceiling (2010 GX(B)Z
No. 01) with Mianyang Branch of ICBC with amount of RMB EIGHTY MILLION ONLY. Changhong
Air-conditioner was the debtor (warrantee) with guarantee term from Jun. 1, 2010 to Mar. 31, 2011. The
Company offered relevant guarantee for serials debts that occurred during the terms related to loan business of
Changhong Air-conditioner. Till recently, guarantee of current currency loan contract, contract of foreign
currency loan, bank acceptance agreement, and letter of credit agreement/ guarantee agreement, financing
agreement in trading. Till the end of Jun. 30, 2011, the bank acceptance bill undue issued in ceiling guarantee
amounting to RMB 37,876887.62. (note: this guarantee contract had been due, but the bank acceptance hadn’t
been due, so the guarantee responsibility will be fulfilled till the bank acceptance was due and cancelled
automatically.)
On June 15, 2010, the Company entered into Contract of Counter-Guarantee, which was unconditional,
irrevocable, contributory and with guarantor as the exclusive beneficiary, with Changhong Air-conditioner.
Changhong Air-conditioner offered relevant counter-guarantee to the above mentioned Contract of Guarantee
under the Debt Ceiling (2010 GX(B)Z No. 01) of RMB EIGHTY MILLION ONLY guarantee.
Category of creditor’s right, amount and terms of counter-guarantee:
① In the credit of above mentioned Contract of Guarantee under the Debt Ceiling, the accommodator offer
loans and notes to borrower with explosure amount less than RMB EIGHTY MILLION. Specifit amount will
agreed based on the contract. Term of guarantee will be 2 years since from the date of loan interest and other
relevant expenses paid to accommodator by guarantor for borrower.
② Guarantee expenses ( including guarantee fee, overdue fine, overdue insurance and other expenses) received
from borrowers by guarantor. Specific amount will based on the agreement. Term of guarantee will be 2 years
since from the second day of expiration of guarantee expenses term that agreed on the agreement.
(2) On August 1, 2010, the Company entered into Contract of Maximum Mortgage of RMB Loans (2010 DZD
No. 08018) with Hefei Dadongmen Branch of HUISHANG BANK with amount of RMB TWELVE MILLION
ONLY. Zhongke Meiling was the debtor (warrantee) with guarantee term from August 1, 2010 to August 1,
2011. The Company provided mortgage guarantee for Zhongke Meiling concerning all loan contracts signed
with Hefei Dadongmen Branch of HUISHANG BANK. The mortgage project was the house located Meiling
Industry Zone, Longgang Development District with area of 23905.35M2. Till the end of Jun. 30, 2011,
Zhongke Meiling no events happened concerning the loans agreed in contract.
(3) On August 1, 2010, the Company entered into Guarantee Contract of Maximum Mortgage of Bank
Acceptance (2010 YCZD No. 08018) with Hefei Dadongmen Branch of HUISHANG BANK with amount of
RMB EIGHT MILLION ONLY. Zhongke Meiling was the debtor (warrantee) with guarantee term from August
1, 2010 to August 1, 2011. The contract was the provided mortgage guarantee of Bank Acceptance Agreement
signed between Zhongke Meiling and Hefei Dadongmen Branch of HUISHANG BANK. And was the ceiling
mortgage guarantee for bank acceptance with property right in mortgaged. Till the end of Jun. 30, 2011,
Zhongke Meiling no events happened concerning the loans agreed in contract.
(4) On August 1, 2010, the Company entered into the Guarantee Contract of Counter-Guarantee with Zhongke
Meing, which was unconditional, irrevocable, contributory and with guarantor as the exclusive beneficiary,
concerning the Contract of Guarantee under the Debt Ceiling signed with Hefei Shengli Road Branch of China
CITIC Bank( Contract No.: 2010 HYZBZ No. 1073269A0170-a), Contract of Maximum Mortgage of RMB
172
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Loans signed with Hefei Dadongmen Branch of HUISHANG BANK( 2010 DZD No.08018) and Guarantee
Contract of Maximum Mortgage of Bank Acceptance(2010 YCZD No.08018), amounting to RMB THIRTY
MILLION ONLY fro counter-guarantee. Till the end of Jun. 30, 2011, no events happened concerning related
agree in contract.
(5) On Apr. 11 of 2011, the Company signed the Guarantee Contract with the Highest Amount with China
Commercial and Industrial Holdings Co., Ltd Zhongshan Nantou Branch （ 2011 Zi[20110214G] No.
[6P023P01]）. The amount on the contract was RMB 50 million and the debtor (guarantee) was Zhongshan
Changhong Electric ApplianceCo., Ltd. The guarantee period lasts from Apr. 11 of 2011 to Apr. 10 of 2020 and
the guarantee scope of the contract includes main principal under the main contract claims, interest, compound
interest, penalty, penal sum, damages, costs and claims of creditors to achieve all other fees payable, including
but not limited to legal fees, arbitration fees, property preservation fees, appraisal fee etc. Till Jun. 30 of 2011,
Zhongshan Changhong Electric ApplianceCo., Ltd had no guarantees relevant to the contract.
(6) On Jun. 1 of 2011, the Company signed the Contract on the Highest Amount (2011 BZi No. 02004) with
Merchants Bank Hefei Big East Gate Branch. Amount on the contract is RMB 17 million and the debtor
(guarantee) is HefeiMeiling Non-ferrous Metal Products Co., Ltd. The guarantee period lasts from Jun. 1 of
2011 to Jun. 1 of 2020 and the guarantee scope of the contract includes main principal under the main contract
claims, interest, compound interest, penalty, penal sum, damages, costs and claims of creditors to achieve all
other fees payable, including but not limited to legal fees, arbitration fees, property preservation fees, appraisal
fee etc. Till Jun. 3 of 2011, HefeiMeiling Non-ferrous Metal Products Co., Ltd had no guarantees relevant to the
contract.
(7) On July 30, 2010, Changhong Group offered gurantee for the business contract signed between the
Company and Business Office of Anhui Branch of Agricultural Development Bank of China, signed the
Contract of Guarantee under the Debt Ceiling(2010 YK(B)Zi No. 0010) with guarantee term from July 30,
2010 to July 29, 2011 of ceiling principal claim of RMB FIFTY MILLION ONLY. The contract including the
main creditors’ principal, interest, compound intereste, penalty interest, penalty fine, damage awards, fee for
creditor right realization and relevant other payable fees that contained under main-contract. Including but no
limited to the litigation charge, artribution charge, property security charge and evaluation expenses etc. Till end
of Jun. 30, 2011, the Company have RMB 50 million borrowed.
(8) On January 4, 2009, Changhong Group offered Contract of Guarantee under the Debt Ceiling s(contract
no.:090044) concerning the credit business contract signed between the Company and Bank of
Communications Co., Ltd. With guarantee term from January 4, 2009 to January 4, 2011 of RMB TWO
HUNDRED MILLION ONLY in ceiling amount in a jointly responsibility way. The contract was terminated on
June 30, 2010. the new credit business agreement signed with the Bank of Communication offered RMB
387,500,000 for comprehensive credit business( explosure amount of RMB 200 million). Among which, the
short-term loan will less than RMB 200 million, bank acceptance bill of RMB 285,700,000; the bond rate will
not less than 30%; L/C without the bond and RMB 0.1 billion was the explosure credit; other RMB 0.1 billion
will guratee by Changhong Group for jointly responsibility, the discount amount of bank acceptance bill of
RMB100 million.
(9) guarantee the MeilingGroup Company offered to its subsidiaries as follows:
Number of guarantee Amount of loan
Subsidiaries Banks Beginning date Ending date
contract (RMB ‘0000)
Hefei
Agricultural and
0109342010120002 1,000.00 2010-3-22 2011-3-22
Yingkaite Home Technology
Appliance Bank
Merchant Bank
400.00 2009-6-22 2012-6-22
of Anhui
Yingkaite
Merchant Bank
Electric 622001 200.00 2009-6-22 2012-6-22
of Anhui
Appliance
Packaging Hefei
2010005 1,000.00 2010-7-9 2011-7-9
Products Agricultural and
173
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Technology
Bank
Total 2,600.00
5.Fixed assets purchased from related parties
Amount of this Amount of this
Parties offering sales of assets period of last
period
year
Sichuan Changhong Electrical Appliance Co.,Ltd. - 9,712,803.15
Sichuan Hongxin Software Co., ltd. 840,000.00 4,230,000.00
Total 840,000.00 13,942,803.15
6.Receive labor services
Amount of this
Amount of this
Labor services providers period of last year
period
Sichuan Hongxin Software Co., ltd. 400,000.00 1,580,000.00
Sichuan Changhong Minsheng Logistics Limited Company 3,129,011.66 -
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. 29,722,014.22 12,076,661.19
Sichuan Jiahong Industrial Co., Ltd. 70,462,292.20 22,038,865.74
Total 103,713,318.08 35,695,526.93
7.Water & power supply
Amount of this period of
Related parties (receivers) Amount of this period last year
Guangdong Changhong Electrical Co.,Ltd. 260,666.19 638,946.87
Guangdong Changhong Digital Technology Co., Ltd. 57,631.71 53,298.48
Lejiayi Chain Management Co., Ltd. - 2,646.13
Sichuan Changhong Minsheng Logistics Limited Company 13,141.52 -
Sichuan Kuaiyidian Appliance Service Chain Corp 1,541.42 4,400.20
Total 332,980.84 699,291.68
8.Water & power acceptance
Related parties (suppliers) Amount of this Amount of same
period period of last
year
Sichuan Changhong Electric ApplianceHoldingsCo., Ltd 3,373,000.00 3,331,300.00
Total 3,373,000.00 3,331,300.00
(III)Exchange balance of related parties
1. Accounts receivable of related parties
Amount at Amount at
Related parties(items )
period-end year-begin
Parent company and terminal controller
Including: Sichuan Changhong Electrical Appliance Co.,Ltd. - 417,189.59
Joint-venture and associates
Guangyuan Meiling Electric Appliance Marketing Co., Ltd 76,970.81 -
ChangzhouMeiling Electric Appliance Marketing Co., Ltd 5,522,518.12 -
Guangxi MeilingHomeElectric ApplianceCo., Ltd 10,393,359.04 -
174
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Haozhou Meiling Electric Appliance Marketing Co., Ltd 308,901.61 -
Xuancheng Meiling Electric Appliance Marketing Co., Ltd 2,265,131.95 -
Jiujiang Meiling Electric Appliance Marketing Co., Ltd 2,890,757.48 -
Buyang Meiling Electric Appliance Marketing Co., Ltd 124,749,472.73 -
Other enterprises under control from the same parent company or
terminal controller
Including: Sichuan Hongshi Display Technology Limited 1,190,360.00 920,850.04
Sichuan Changhong Mould Science & Technology Co., Ltd. 8,190,580.30 1,673,830.47
Sichuan Changhong Minsheng Logistics LLC 39,755.00 -
Sichuan Changhong Precise Technology Co., Ltd 233,280.00 0.04
Sichuan Changhong New Energy TechnologyCo., Ltd 50,000.00 -
Changhong Appliance (Australia) Co., Ltd. 5,825,870.65 5,620,947.31
Jiangxi Changhong Electrical Science & Technology 267,550.00 267,550.00
Sichuan Changhong Xinrui Science & Technology Co., Ltd. 888,592.33 -
PT.CHANGHONG ELECTRIC IND 14,495,379.87 9,554,424.01
CHANGHONG ELECTRIC MIDDLE 11,096,258.81 -
Huayi Compressor Co., Ltd. 32,000.00 8,550.50
Guangdong Changhong Digital Technology Co., Ltd. - 32,663.28
Sichuan Changhong Electronic System Co., Ltd - 140.00
Sichuan Changhong Dongyuan Precise Equipments Co., Ltd 4,744.87 3,624.87
Sichuan Changhong International Hotel LLC 29,522.60 772.00
Sichuan Changhong Equipments TechnologyCo., Ltd - 9,032.08
Guangdong Changhong Electronic Co., Ltd - 149,647.15
Sichuan Hong’ou Display Equipments Co., Ltd 920,850.04 -
Sichuan Kuaiyidian Electric ApplianceService Chain Co., Ltd 1,189,588.24 -
Chongqing Hong Life Trade Co., Ltd - 25,499.24
Associated enterprises of controlling shareholders and actual
controller
Changzhi Opto-electrical (Sichuan )Co., Ltd 175,500.00 -
Total 190,836,944.45 18,684,720.58
2. Account received in advance from relate parties
Amount at Amount at
relate parties (item)
period-end year-begin
parent company and terminal controller
Including: Sichuan Changhong Electrical Appliance Co., Ltd. 65,946,822.83 26,888,716.12
Other enterprises under control from the same parent company or
terminal controller
Including：Mianyang Lejiayi Trade Chain Co., Ltd 2,108,077.45 7,272.65
Sichuan Changhong Precise Electronic TechnologyCo., Ltd 0.32 0.32
Sichuan Changhong Equipments TechnologyCo., Ltd 0.33 -
175
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Changhong (Hong Kong) Trade Co., Ltd 25,085.34 27,207.44
Wandao Network Technology Co., Ltd 178,605.00 -
Chongqing Hong Life Trade Co., Ltd 45,302.00 -
Sichuan Changhong Gerun Renewable Resource Co., Ltd 18,435.81 -
Sichuan Changhong Electronic System Co., Ltd 0.40 -
Joint-ventures and associates
Guangyuan Meiling Electric Appliance Marketing Co., Ltd 1,607,114.72 1,557,229.34
ChangzhouMeiling Electric Appliance Marketing Co., Ltd 2,104,142.29 1,136,429.92
Guangxi MeilingHomeElectric ApplianceCo., Ltd 4,957,230.94 7,006,456.41
Haozhou Meiling Electric Appliance Marketing Co., Ltd 3,536,981.45 5,379,577.56
Xuancheng Meiling Electric Appliance Marketing Co., Ltd 7,127,248.51 -
Jiujiang Meiling Electric Appliance Marketing Co., Ltd 4,458,533.78 2,816,604.93
Buyang Meiling Electric Appliance Marketing Co., Ltd 13,777,003.84 -
Total 105,890,585.01 44,819,494.69
3.Account payable from related parties
Amount at
relate parties (item) Amount at year-begin
period-end
parent company and terminal controller
Including: Sichuan Changhong Electrical Appliance Co., Ltd. 38,229,352.68 14,015,465.54
Other enterprises under control from the same parent company or
terminal controller
Including: Sichuan Changhong Mould Science & Technology Co., Ltd. 76,765,966.03 16,299,399.33
Huayi Compressor Co., Ltd. 45,693,442.48 63,759,612.42
Sichuan Changhong Jijia Precise Co., Ltd. 100,245,098.14 20,100,585.19
Sichuan Changhong Minsheng Logistics Limited Company 7,423,168.11 7,004,311.26
Sichuan Changhong Packing Business Limited 7,561,031.23 4,423,111.53
Sichuan Changhong Equipment Science & Technology Co., Ltd. 11,510,531.17 3,563,127.38
Mianyang Hongrun Electricals Co., Ltd. 4,054,972.61 521,304.38
Sichuan Changhong Dongyuan Precise Equipment Co., Ltd. 2,504,389.08 11,546,641.93
Sichuan Changhong Precise Electrical Technology Limited
989,543.09 289,475.43
Company
Sichuan Changhong New Energy Science & Technology Co.,
175,556.16 83,478.47
Ltd.
Guangdong Changhong Electricals Co., Ltd. 47,239.05 -
Sichuan Hongxin Software Co., Ltd. 20,000.00 391,397.25
Sichuan Changhong Power Supply Limited 25,398.14 20,795.96
Sichuan ChangheTechnology Co., Ltd 254,964.21 -
Sichuan Jinghong Packaging Products Co., Ltd 8,650,776.35 -
Sichuan Kuaiyidian Electric ApplianceService Chain Co., Ltd 9,503,763.75 -
Sichuan Hongyu Metal Manufacture LLC 367,206.51 126,111.00
081Electronic Group Sichuan Liyuan ElectronicCo., Ltd 1,207,270.10 457,707.51
Sichuan ChangxinZhilengComponentsCo., Ltd 20,239,712.08 -
176
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Zhongshan Guanghong Mould Plastic TechnologyCo., Ltd 34,911.36 -
Associates of controlling shareholders and actual controllers:
Including: Sichuan Changxin Refrigeration Parts Co., Ltd. 6,367,619.86 14,577,542.34
Sichuan Jinghong Packing Product Co.,Ltd. 5,957,612.73 4,371,986.63
Sichuan Changhe Science & Technology Co., Ltd. 529,911.70 430,463.41
Total 348,359,436.62 161,982,516.96
4.Prepaid accounts for related parties
Amount of Amount of
related parties (itmes)
period-end year-begin
parant company and the final controller
Including：Sichuan Changhong Electric Appliance Holdings
100,000.00 -
Company
Total 100,000.00 -
5.Othe account payable of related parties
Amount at Amount at
relate parties (item)
period-end year-begin
parent company and terminal controller
Including: Sichuan Changhong Electrical Appliance Co., Ltd. 2,647,627.55 605,555.10
Other enterprises under control from the same parent company or
Including: Sichuan Changhong Minsheng Logistics Limited Company 1,874,584.26 3,659,909.36
Sichuan Changhong Mould Science & Technology Co., Ltd. 320,000.00 320,000.00
Sichuan Changhong Dongyuan Precise Equipments Co., Ltd 500,000.00 -
Sichuan Changhong Gerun Renewable Resource Co., Ltd 10,000.00 -
Sichuan Changhong Precise TechnologyCo., Ltd 170,000.00 170,000.00
Affiliated enterprises of holding shareholders and actual controller
Sichuan ChangheTechnologyCo., Ltd - 50,000.00
Total 5,522,211.81 4,805,464.46
X. Contingent proceedings
(I) Pending action or possible liabilities formed from arbitration: Nil
(II) Possible liabilities from guarantees for related parties: Nil
Besides the above contingencies, till Jun. 30, 2011, the Company had no other major contingencies.
XI. Commitments
Till Jun. 30 of 2011, no more significant commitments occurred in the Company.
XII. Events occurring after the balance sheet date
(I) Significant commitments made after balance sheet date: Nil
(II) Significant changes on assets value, tax policy and foreign exchange rate after balance sheet date: Nil
(III) Significant losses on assets due to nature disaster after balance sheet date: Nil
(IV) Shares and bonds issuance and other significant debt financing after balance sheet date:Nil
(V) Share capital transfer from public reserve fund after balance sheet date:Nil
(VI) Significant deficit occurred after balance sheet date:Nil
177
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(VII) Enterprise merge or subsidiary disposal occurred after balance sheet date:Nil
(VIII) Significant external investment after balance sheet date:Nil
(IX) Dividend or profit plans to distribute or declara to distribute approved by disgussion in the plan of profit
distribution:
Audited by Shinewing CPAs, net profit of respective statement of parent company in 2010 was RMB
327,015,262.81. The statement of parent company withdrew RMB 32,701,526.28 of surplus accumulation fund
and the 2009 annual shareholders’ meeting agreed to make up for RMB 38,211,546.96 of losses of the previous
year with the surplus accumulation fund. And then accumulated retained profit of respective statement of parent
company reached RMB 293,529,748.86.
In the light of relevant rules of laws and articles of association, considering shareholders’ interest and demands
for future development of the Company, we agreed to give more 2 shares per 10 shares and send cash dividend
RMB 0.5 (tax included) which totalled RMB 132,593,612.25 (taking up 45.17% of 2010 annual profit available
for distribution by shareholders) to all the shareholders based on the totall capital share 530,374,449 shares on
Dec. 31 of 2010. The remained profit will be distributed in future years after carryover.
The preplan about 2010 annual profit distribution had been reviewed and passed in the 2010 annual
shareholders’ meeting on Jun. 20 of 2011. The Company will conduct the profit distribution in accordance with
relevant rules.
(X) Other than the above mentioned events, the Company have no other events occurred after balance sheet
date.
XIII. Segment information (Unit: RMB’0000)
Refrigerat Air-conditi Washing
Items Other Offset Total
or and oner machine
Operation income 389,657.38 170,198.07 2,155.13 54,818.28 57,372.73 559,456.13
Including: income from external 345,314.54 169,051.33 164.48 44,925.78 - 559,456.13
Income from transaction 44,342.84 1,146.74 1,990.65 9,892.50 57,372.73 -
Operation expense 447,160.52 170,832.39 2,510.29 58,288.23 133,436.89 545,354.54
Operation profit(loss) 15,664.93 1,564.95 -355.16 -3,463.26 - 14,101.60
Total assets 715,707.06 181,096.25 4,536.96 68,187.14 131,726.54 837,800.87
Total liabilities 408,481.93 139,012.91 7,288.74 47,037.75 54,653.29 547,168.04
Supplementary information - - - - - -
Depreciation and amortization 5,875.22 1,219.35 142.16 1,396.95 704.94 7,928.75
Capital expenditure 14,265.58 1,236.64 30.73 1,601.22 - 17,134.17
Non-cash expense except
32,771.29 12,737.52 91.52 2,908.14 - 48,508.48
fordepreciation and amortization
XIV. Other significant matters
(I) Operation of leased-out assets
Type of assets leased out Amount at period-end Amount at year-begin
Houses and buildings( investment real estate) 17,074,748.39 17,432,142.70
Machinery equipment(fixed assets leased 6,154,284.64 18,379,601.36
Other equipment (fixed assets leased 209,373.24 22,737.50
Land use right( investment real estate) 676,117.79 692,104.69
Total 24,114,524.06 36,526,586.25
(II) Assets and liabilities measured by fair value: Nil
178
Hefei Meiling Co., Ltd. Semi-annual Report 2011
(III) Foreign currency financial assets and liabilities
accumulative
Gains and losses
fair value Impairment
Amount at of fair value
Item change withdrew this Amount at period-end
year-begin change of this
recorded in period
period
equity
Financial assets
Financial assets measured
by fair value and whose
change is recorded in
- - - - -
current gains and losses
(excluding derivative
financial assets)
Derivative financial assets - - - - -
Loans and account 6,595,531.32
89,117,805.04 - - 266,688,944.18
receivable
Financial assets available - - - - -
for sale
Hold-to-maturity
- - - - -
investment
Subtotal of financial 6,595,531.32
89,117,805.04 - - 266,688,944.18
assets
Financial liabilities - - - - -
Foreign currency loans - - - - 3,953,361.30
Subtotal of financial
- - - - 3,953,361.30
liabilities
XV. Notes to main items of financial statement of parent company
1. Account receivable
(1) Account receivable classify according to account age
Amount at period-end Amount at year-begin
Book balance Bad debt reserve Book balance Bad debt reserve
Item
Ratio( Ratio( Ratio( Ratio
Amount Amount Amount Amount
%) %) %) (%)
Within
1year 516,621,474.70 98.60 23,588,558.65 81.90 285,115,466.63 97.59 13,105,093.32 75.54
1-2years 2,013,173.65 0.38 301,976.05 1.05 1,861,701.62 0.64 279,255.24 1.61
2-3 years 1,422,088.98 0.27 1,422,088.98 4.94 1,939,351.49 0.66 1,939,351.49 11.18
3-4 years 875,926.23 0.17 875,333.13 3.04 3,232,170.44 1.11 2,021,235.12 11.65
4-5 years 3,011,730.07 0.57 2,608,282.66 9.06 - - - -
Over 5
years 4,311.68 0.00 4,311.68 0.01 4,311.68 0.00 4,311.68 0.02
Total 523,948,705.31 100.00 28,800,551.16 100.00 292,153,001.86 100.0 17,349,246.85 100.0
0 0
Net value 495,148,154.15 274,803,755.01
(2) Account receivable classify according to category
Amount at period-end Amount at year-begin
items
Book balance Bad debt reserve Book balance Bad debt reserve
179
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Ratio( Ratio( Ratio( Ratio(
Amount Amount Amount Amount
%) %) %) %)
Account
receivable
with single
significant
amount and - - - - - - - -
withdrwal
single item
bad debt
provision
Account receivable withdrwal bad debt provision by comnination
Account
except
contract 480,602,249.19 91.73 26,387,904.42 5.49 266,658,846.86 91.27 14,868,692.29 5.58
account with
related parties
Account of
contract
40,933,809.38 7.81 - 0.00 23,013,600.44 7.88 - -
account with
related parties
Subtotal 521,536,058.57 99.54 26,387,904.42 5.06 289,672,447.30 99.15 14,868,692.29 5.13
Account
receivable
with single
minor amount 100.0
2,412,646.74 0.46 2,412,646.74 100.00 2,480,554.56 0.85 2,480,554.56
but withdrwal 0
single item
bad debt
provision
Total 523,948,705.31 100.00 28,800,551.16 5.50 292,153,001.86 100.0 17,349,246.85 5.94
Net value 495,148,154.15 274,803,755.01
(3) Account receivable with single significant amount and withdrwal bad debt provision single: Nil
(4) Among the combinations, bad debt provision of account except contract with related parties accrued by account age:
Amount at period-end Amount at year-begin
Age Bad debt Bad debt
Amount Ratio (%) Amount Ratio (%)
reserve reserve
within1year 475,893,796.4 5 23,794,689.8 262,101,866.19 5 13,105,093.3
1
1-2 years 2,013,173.65 15 301,976.05 1,861,701.62 15 279,255.24
2-3 years - 35 - - 35 -
3-4 years 1,318.00 55 724.90 2,690,967.37 55 1,480,032.05
4-5years 2,689,649.37 85 2,286,201.96 - 85 -
over5 years 4,311.68 100 4,311.68 4,311.68 100 4,311.68
Total 480,602,249.1 26,387,904.4 266,658,846.86 14,868,692.2
9
Net value 454,214,344.77 251790154.57
(5) Among combinations, account from contract account with related parties:
Accrued
Items Book balanc e Bad debt provision
proportion (%)
Account from related parties 6,681,648.75 - -
Letter of credit 34,252,160.63 - -
Total 40,933,80.38 - -
(6) Account receivable with single minor amount but withdrwal single item bad debt provision at period-end
180
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Accrued
Book balanc Bad debt
Account receivable proportion Accrued reasons
e provision
(%)
Nanjing Central Market (group) Co., Ltd. 512,925.85 100% 512,925.85
Zhejiang Yongle Appliance Co., Ltd. (Taizhou) 95,090.82 100% 95,090.82
Gaomi Sanhe Appliance Market Co., Ltd. 610,458.57 100% 610,458.57
Cifeng Baixin Apparatus Co., Ltd. 271,114.97 100% 271,114.97
Jilin Gume Electrical Appliances Co., Ltd. (Yanji) 161,112.50 100% 161,112.50
Helong Bajiazi Zaolin Apparatus 2,231.60 100% 2,231.60 Cease business
Yichun Jixing Appliance Town 218,509.36 100% 218,509.36 contact 2-3 years;
Shandong Wendeng Department Store General predicted
Company 129,051.14 100% 129,051.14 un-recovered for
Shanxi Yongle Dazhong Life Apparatus Co., 94,067.09 100% 94,067.09 urgent
Jiangsu Zhenjiang Gome Electrical Appliances Co.,
Ltd. 176,425.61 100% 176,425.61
Jilin Gome Electricial Appliance Co., Ltd. (Ulan
Bator) 90,071.23 100% 90,071.23
Liuzhou Minyu Hardware Appliance Business 51,588.00 100% 51,588.00
Total 2,412,646.74 2,412,646.74
(7) Bad debt provision swith-back
Balance of
Contents of accounts receivable year-begin Concerted amount Book balance
Transfer of partial subscriber's machines in
40.00 40.00 -
Weifang
Jilin Guomei Electric ApplianceCo., Ltd
228,980.32 67,867.82 161,112.50
Yanji Branch
(8) Account receivable received of previous that being verified before this period: Nil
(9) Amount of accounts receivable verified and cancelled in this period: Nil
(10) Arrears of the shareholders holding more than 5% (including 5%) shares with voting rights of the
Company
Amount at period-end Amount at year-begin
Unit Bad debt Bad debt
Arrears Arrears
provision provision
Sichuan Changhong Electrical
- - 417,189.59 -
Appliance Co.,Ltd.
(11) Top 5 of account receivable
Proportion in
Relationship with
Unit Amount Age total account
the Company
receivable
Suning Appliance Co., Ltd. Nanjing Non-related party 185,614,199.73 Within 1year 35.43%
Chengdu Gome Electric Co., Ltd. Non-related party 21,387,468.99 Within 1year 4.08%
Jiangsu Five Star Appliance Co., ltd. Non-related party 17,523,596.71 Within 1year 3.34%
Electrolux Major Appliances Europe Non-related party 16,601,673.92 Within 1year 3.17%
181
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Electrolux Major Appliances, Latin
Non-related party 14,212,684.71 Within 1year 2.71%
America
Total 255,339,624.06 48.73%
(12) Account receivable of related parties can be seen on Note IX (3)
(13) Balance of accounts receivable in foreign currencies
Amount at period-end Amount at year-beginning
Foreign
currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
USD 13,010,515.87 6.4716 84,198,854.50 4,570,423.13 6.6227 30,268,541.26
EUR 595,891.78 9.3612 5,578,262.13 29,025.24 8.8065 255,610.78
AUD 816,133.01 6.8204 5,566,353.58 350,198.22 6.7139 2,351,195.83
Total 95,343,470.22 32,875,347.87
(14) No derecognition account received.
2. Other account receivable
(1) Other account receivable classify according to account age
Amount at period-end Amount at year-begin
Book balance Bad debt reserve Book balance Bad debt reserve
Age
Ratio( Ratio( Ratio(% Ratio(
Amount Amount Amount Amount
%) %) ) %)
Within 1
46,332,646.59 93.56 291,545.26 21.26 14,785,229.84 79.68 731,418.49 21.26
year
1-2years 559,495.68 1.13 83,924.35 3.52 806,069.34 4.34 120,910.40 3.52
2-3 years 190,302.46 0.38 66,605.86 3.24 318,371.50 1.72 111,430.03 3.24
3-4 years 113,145.89 0.23 62,230.24 5.76 360,329.70 1.94 198,181.34 5.76
4-5 years 157,140.21 0.32 133,569.18 1.34 54,031.00 0.29 45,926.35 1.34
over5 years 2,169,287.01 4.38 2,169,287.01 64.88 2,231,615.08 12.03 2,231,615.08 64.88
Total 49,522,017.84 100.00 2,807,161.90 100.00 18,555,646.46 100.00 3,439,481.69 100.00
Net value 46,714,855.94 15,116,164.77
(2) Other account receivable classify according to category
Amount at period-end Amount at year-begin
Book balance Bad debt reserve Book balance Bad debt reserve
items Rati Rati
Ratio( Ratio(
Amount Amount Amount o(% Amount o(%
%) %)
) )
Account
receivable with
single significant
amount and - - - - - - - -
withdrwal single
item bad debt
provision
Account receivable withdrwal bad debt provision by comnination
Account except
employee reserve
fund loan,
6,850,989.46 13.83 637,874.89 9.31 16,331,169.50 88.01 1,371,864.73 8.40
investment loan
and contract
account with
182
Hefei Meiling Co., Ltd. Semi-annual Report 2011
related parties
Account from
employee reserve
fund loan,
investment loan 40,501,741.37 81.79 - 156,860.00 0.85 - -
and contract
account with
related parties
Combination
47,352,730.83 95.62 637,874.89 1.35 16,488,029.50 88.86 1,371,864.73 8.32
Subtotal
Account
receivable with
single minor
100.
amount but 2,169,287.01 4.38 2,169,287.01 100.00 2,067,616.96 11.14 2,067,616.96
00
withdrwal single
item bad debt
provision
100.0 18.
Total 49,522,017.84 2,807,161.90 5.67 18,555,646.46 100.00 3,439,481.69
0 54
Net value 46,714,855.94 15,116,164.77
(3) Other account receivable with single significant amount and withdrwal bad debt provision single: Nil
(4) Among the combinations, bad debt provision of account except employee reserve fund loan, investment loan and
contract account with related parties accrued by account age:
Age Amount at period-end Amount at year-begin
Bad debt Bad debt
Amount Ratio(%) Amount Ratio(%)
reserve reserve
Within
5,830,905.22 5 291,545.26 14,628,369.84 5 731,418.49
1year
1-2
559,495.68 15 83,924.35 806,069.34 15 120,910.40
years
2-3
190,302.46 35 66,605.86 318,371.50 35 111,430.03
years
3-4
113,145.89 55 62,230.24 360,329.70 55 198,181.34
years
4-5
157,140.21 85 133,569.18 54,031.00 85 45,926.35
years
Over 5
100 163,998.12 100 163,998.12
years
Total 6,850,989.46 637,874.89 16,331,169.50 1,371,864.73
Net
6,213,114.57 14,959,304.77
value
(5) Among combinations, bad debt provision of account from employee reserve fund loan, investment loan and
contract account with related parties accrued by balance proportion:
Accrual Bad debt
Combination Book balance Age
proportion provision
Contact amount with
40,501,741.37 - - Within 1year
related parties
(6) Other account receivable with single minor amount but withdrwal single item bad debt provision at period-end
183
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Other account Book Bad debt Accrual
Reasons
receivable balance provision proportion
Resignation Loan from dismissed staffs, not
workers expected to recover
2,169,287.01 100% 2,169,287.01
Total 2,169,287.01
(7) Swich-back of bad debt provision: Nil
(8)Other account receivable of previous years that have been verified recovered in 2010: Nil
(9) Other account receivable actually verified this year period:
Raising from related
Company Nature Amount verified Reasons for verified
transaction Yes/No
Loan of business
Lv Zhengxin 2,000.00 Dead No
trip
Hospitalization
Yang Weiye 50,000.00 Dead No
loan
Loan of business
Ji Kai 2,000.00 Dead No
trip
Convoy of Unit must write off,
Contact between
northern of 271,597.00 legal representative No
suppliers
Huai River was dead
Total 325,597.00
(10) In the balance of other receivable at the end of this year, there is no arrearage due from shareholders
holdng 5% or above voting right shares of the Company: Nil
(11) Particulars about the top 5 others receivable
Proportion
taking in total
Unit Amount Ageing Nature
accounts
receivable
Reserve fund for Jinan Within 1 Reserve fund for financial
1.83%
Branch 904,495.95 year manager of branch
Reserve fund for Within 1 Reserve fund for financial
1.72%
Beijing Branch 849,984.50 year manager of branch
Loan of Reserve fund Within 1 Loan for booth fee of
0.85%
for staffs 420,000.00 year Canton Fair
Loan of Reserve fund Within 1 Verification fee for check
0.75%
for staffs 370,392.00 year of metrologic instrument
Loan of Reserve fund Within 1
0.70% CCC Verification fee
for staffs 348,483.00 year
Total 5.84%
2,893,355.45
(12) Other account receivable from related parties
184
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Item Amount at year-end Amount at year-begin
Hefei Meiling Apparatus Marketing
39,855,721.38 156,860.00
Co., ltd.
(13) Account receivable denominated in foreign currency: Nil
(14) Derecognition other account receivable: Nil
3. Long-term equity investments
(1)Classification of long-term equity investments
Item Amount at period-end Amount at year-begin
Long-term equity investment calculated by cost 760,348,087.68 712,442,457.16
method
Long-term equity investment calculated by
12,056,790.07 2,331,812.72
equity method
Total of long-term equity investment 772,404,877.75 714,774,269.88
Less: provision for impairment of long-term
equity investment
Value of long-term equity investment 772,404,877.75 714,774,269.88
(2)Long-term equity investments calculated by cost method and equity method
Voting Cash
Increae Decrease
Shareholdi right Initial Amount at Amount at dividend
Invested unit during the during the
ng ratio(%) ratio( amount year-begin year-end for this
year year
%) year
Calculation by cost
method
Zhongke Meiling
42,000,000.0 42,000,000.0 42,000,000.0
Cryogenics Limited 70.00 70.00 - - -
0 0 0
Company
Jiangxi Meiling 45,000,000.0 45,000,000.0 45,000,000.0
90.00 97.00 - - -
Refrigeration Co., Ltd. 0 0 0
JiangxiMeilingElectric 10,000,000.0 10,000,000. 10,000,000.0
98.75 99.98 - - -
ApplianceLLC(note 1) 0 00 0
Mianyang Meiling
45,000,000.0 45,000,000.0 50,000,000. 95,000,000.0
Refrigeration Co., Ltd. 95.00 98.50 - -
0 0 00 0
(note 2)
Hefei Meiling Appliance 54,900,000.0 54,900,000.0
99.82 100.00 9,900,000.00 - - -
Marketing Co., Ltd. 0 0
Sichuan Changhong Air 305,600,437. 305,600,437. 305,600,437.
100.00 100.00 - - -
Conditioner Co., Ltd. 79 79 79
Zhongshan Changhong 76,256,419.3 76,256,419.3 76,256,419.3
90.00 100.00 - - -
Appliance Co., Ltd. 7 7 7
Huishang Bank Co., Ltd. 1.15 1.15 5,000,000.00 5,000,000.00 - - 5,000,000.00 -
HefeiMeilingPackaging 25,055,600.0 25,055,600.0 12,094,369. 12,961,230.5
48.28 100.00 -
Co., Ltd(note 3) 0 0 48 2
HefeiMeilingGroup 113,630,000. 113,630,000. 113,630,000.
100.00 100.00 - - -
Holdings Co., Ltd 00 00 00
Subtotal - - 677,442,457. 712,442,457. - - 760,348,087. -
185
Hefei Meiling Co., Ltd. Semi-annual Report 2011
16 16 68
Calculation by equity
method
Anhui United
Technological Property 2,331,812.7 514,300.0
28.57 28.57 1,000,000.00 2,331,812.72 - -
Exchange Co., Ltd. (note 2 0
4)
Hefei Xingmei Assets
12,056,790.0 12,056,790. 12,056,790.0
Management Co., 48.28 48.28 - - -
7 07 7
Ltd(note 3)
13,056,790.0 12,056,790.0 514,300.0
Subtotal - - 2,331,812.72 - -
7 7 0
Total - - 695,158,057. 714,774,269. - - 772,404,877. 514,300.0
16 88 75 0
Note 1：Jiangxi Meiling Electric Appliance LLC was invested in and founded by the Company together with
Mianyang Meiling on May 23 of 2011. Total investment was about RMB 80 million, including, the Company
invested RMB 79 million and Mianyang Meiling RMB 1million. Registration capital was RMB 50 million
while the surplus part of total shareholders’ investment beyond registration capital RMB 30 million was
included in capital reserve. The Company invested initiatively RMB 10 million on May 13 of 2011 while
Mianyang Meiling RMB 0.5 million on May 12 of 2011. The second phase of remaining investment of the
Company and Mianyang Meiling had been in place on Jul. 1 of 2011.
Note 2：The capital raised from non-public issue of A stock had been in place. According to the usage of capital
raised from non-public issue, the Company had completed the RMB 50 million of capital increase on
Mianyang Meiling Zhileng Co., Ltd.
Note 3：The 46th meeting of the 6th session of Board of Directors decided toderivative and split the assets and
liabilities Hefei Meiling Packaging Products Co., Ltd didn’t included in transferred assets scope when the
Company purchased Meiling Group. Then Hefei Xingmei Assets Management Co., Ltd was founded and the
previous Meiling Packaging existed still. Therefore the Company divided the investment income of Meiling
Packaging into Xingmei Assets.
Note 4：In accordance with the decision of the 44th meeting of the 6th session of Board of Directors, the
Company transferred 28.57% equity of Anhui United Technologies Equity Exchange Co., Ltd.
(3)Investment in associates
Share
Voting
Type of Legal Business holding
Invested units Registration Registration right
enterprises representative type ratio
palce capital ratio
（%）
（%）
Hefei Xingmei
Real estate
Assets Huang
Co., Ltd Hefei management, 1,000,000.00 48.28 48.28
Management Co., Youzhi
leasing
Ltd
Continue Table
Total amount Total Total amount Total Net
Invested unit
of period-end amount of of period-end amount of profit
186
Hefei Meiling Co., Ltd. Semi-annual Report 2011
capital period-end net assets operational of this
liabilities income of period
this period
Hefei Xingmei
Assets
30,890,557.26 5,917,918.34 24,972,638.92 - -
Management Co.,
Ltd
(4)Provision for impairment of long-term equity investment: Nil
4. Operation income and operation cost
(1)Operation income and operation cost
Amount for same period of last
Item Amount for this period
year
Main business income
3,604,607,979.80 3,253,792,487.32
Other business income
601,876,011.12 490,864,050.49
Total
4,206,483,990.92 3,744,656,537.81
Main business income
2,716,145,527.69 2,262,294,849.69
Other business income
588,185,835.37 459,953,413.92
Total
3,304,331,363.06 2,722,248,263.61
(2)Classified according to product
Amount for this period Amount for same period of last year
Products Operaion income Operation cost Operaion income Operation cost
Main business income 3,604,607,979.80 2,716,145,527.69 3,253,792,487.32 2,262,294,849.69
Refrigerator and
3,554,806,111.78 2,675,279,505.96 3,253,792,487.32 2,262,294,849.69
freezer
Income from air
- - - -
conditioner
Washing machine 49,801,868.02 40,866,021.73 - -
Other business income 601,876,011.12 588,185,835.37 490,864,050.49 459,953,413.92
Sales of raw
599,909,278.56 587,956,070.36 490,125,830.49 459,774,576.18
materials
Rental income 1,592,630.00 225,662.45 738,220.00 178,837.74
Other income 374,102.56 4,102.56
Total of operation
4,206,483,990.92 3,304,331,363.06 3,744,656,537.81 2,722,248,263.61
income
(3)Classified according to region
Amount for this period Amount for same period of last year
Operaion
Products Operaion income Operation cost Operation cost
income
Domestic sales
3,913,732,488.43 3,023,483,357.12 3,517,497,655.60 2,509,950,919.69
income
187
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Overseas sales
292,751,502.49 280,848,005.94 227,158,882.21 212,297,343.92
income
Total 4,206,483,990.92 3,304,331,363.06 3,744,656,537.81 2,722,248,263.61
(4)Sales income from the top 5 customers for this year
Proportion taking in total operating
Customer Operating income
income of the Company (%)
Suning Appliance Co., Ltd. (Nanjing) 343,032,359.40 8.15%
Guangxi MeilingHomeElectric ApplianceCo.,
65,014,358.25 1.55%
Ltd
Buyang Meiling Electric Appliance Marketing
51,616,745.71 1.23%
Co., Ltd
WuhuMeiling Electric Appliance Marketing
40,595,206.60 0.97%
Co., Ltd
Anhui Baida Apparatus Chain Co., Ltd. 39,344,092.93 0.94%
Total 539,602,762.89 12.83%
5.Investment income
(1) Sources of investment income
Amount for same
Item Amount for this period
period of last year
Long-term equity investment income by cost method - 4,360,593.46
Long-term equity investment income by equity method -256,971.23
Investment income from disposal of long-term equity investment -
201,850.28
Investment income from period of holding tradable financial assets - -
Investment income from period of holding hold-to-maturity investment - -
Investment income from period of holding financial assets available for
- -
sale
Investment income from disposal of tradable financial assets - -
Investment income from disposal of hold-to-maturity investment - -
Investment income from disposal of financial assets available for sale - 137,826,312.25
Accurred income from disposal of subsidiaries from cost method to
- -
equity method
Total 164,270.87 141,929,934.48
(2) long-term equity investment income by cost method: Nil
(3) Long-term equity investment income by equity method
Amount for
Amount for Reasons for increase/decrease
Item same period of
this period over last year
last year
Hefei Xingmei Assets
-37,579.41 -
Management Co., Ltd
188
Hefei Meiling Co., Ltd. Semi-annual Report 2011
2.Supplementary information for cash flow statement of parent company
Amount for same
Item Amount for this period
period of last year
1. Adjust net profit to cash flow for operational activities:
Net profit 126,786,138.15 204,889,022.04
Add: provision for depreciation of assets 12,483,061.95 10,315,178.84
Depreciation of fixed assets, consumption of oil gas assets and
36,905,963.72 38,300,628.78
depreciation of productive biological assets
Amortization of intangible assets 12,245,773.41 12,245,773.41
Amortization of long-term retained expense -
Loss from disposal of fixed assets, intangible assets and other
1,876,439.38 465,977.93
long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed -
with “-”)
Loss from change of fair value(gain is listed with “-”) -
Financial expense (gain is listed with “-”) -18,725,111.31 1,664,900.65
Investment loss (gain is listed with “-”) -164,270.87 -137,640,762.06
Decrease of deferred income tax assets (increase is listed with -18,988,030.67 -7,612,984.36
“-”)
Increase of deferred income tax liabilities (decrease is listed -18,609,024.30
with “-”)
Decrease of inventories (increase is listed with “-”) -26,384,122.87 -60,435,463.32
Decrease of operational accounts receivable (increase is listed -895,455,379.10 -1,186,902,213.87
with “-”)
Increase of operational accounts payable (decrease is listed 270,530,983.97 932,761,970.95
with “-”)
Others -
Net cash flow arising from operation activities -498,888,554.24 -210,556,995.31
2. Significant investment and financing activities with no
reference to cash collection and payment:
Debt convert to capital -
Convertible bond due within one year -
Fixed assets leased in by financing -
3. Net change in cash and cash equivalent:
Balance of cash at period-end 1,062,368,214.04 373,124,414.96
Less: Balance of cash at period-begin 1,798,742,365.27 579,447,940.41
Add: Balance of cash equivalent at period-end -
Less: Balance of cash equivalent at period-begin -
Net increase in cash and cash equivalent -736,374,151.23 -206,323,525.45
XVII. Suplementary information
(I) Non-operational gains and losses for this year
Non-operational gains and losses regulated by Explanation Announcement of Information Disclosure on Stock
Issurance Enterprise No.1—Non-recurrent gains/losses(2008) from CSRC:
Amount for
Amount for
Item same period of Explanation
this period
last year
Details on
Gains and losses from disposal of non-current assets 9,089,799.67 2,037,104.82 non-operation
expenses
189
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Tax refund or mitigate due to
examination-and-approval beyond power or without - -
official approval document or accident
Details on
Government subsidy recorded in current gains and
3,133,103.85 22,650,367.20 non-operation
lossesNote1
income
Capital occupancy expense, collected from - -
fi i i d d i
Income froml the texceeding part betweend investmentt
cost of the Company paid for obtaining subsidiaries,
associates and joint-ventures and recognizable net - -
assets fair value attributable to the Company when
acquiring the investment
Gains and losses from exchange of non-monetary - -
Gainst and losses from assets under trusted - -
t t t
iVarious provision for impairment of assets withdrew
- -
due to act of God, such as natural disaster
Gains and losses from debt restructuring - -
Enterprise reorganization expense - -
Gains and losses of the part airsing from transaction
- -
in which price is not fair and exceeding fair value
Current net gains and losses occurred from
period-begin to combination day by subsidiaries
- -
resulting from business combination under common
control
Gains and losses arising from contingent
proceedings irrelevant to normal operation of the - -
Company
Except for effective hedge business relevant to
normal operation of the Company, gains and losses
arising from fair value change of tradable financial Details on
assets and tradable financial liabilities, and - 134,809,167.26 investment
investment income from disposal of tradable earnings
financial assets, tradable financial liabilities and
financial assets available for sale
Switch-back of provision of impairment of account
receivable which are treated with separate - -
depreciation test
Gains and losses obtained from external trusted
- -
loans
Gains and losses arising from change of fair value of
investment real estate whose follow-up measurement - -
are conducted according to fair value pattern
Affect on current gains and losses after an one-time
adjustment according to requirements of laws and - -
regulations regarding to taxation and accounting
Trust fee obtained from trust operation - -
Details on
Other non-operating income and expenditure except non-operation
61,872.32 607,137.53
for the aforementioned ones income and
expenses
Other gains and losses items complying with - -
d fi iti f t i dl
Subtotal 12,284,775.8 160,103,776.81
190
Hefei Meiling Co., Ltd. Semi-annual Report 2011
Affect on income tax 1,903,048.71 24,217,840.09
Affect on minority equity(after taxation) 78,593.96 162,712.88
Total 10,303,133.1 135,723,223.84
Note 1: in reporting period, the national subsidy of Energy-saving and People-benefiting for wholly-owned subsidiary
Changhong Air-conditioner refers to quota subsidy the government gives to goods producers aim at promoting
High-efficiency and Energy-saving, which was closely related to normal operation business and conformed to
rules of national policy. The Company can successively get quota or fixed amount of government subsidy
according to certain standard, while the subsidy would be included in recurrent profit and loss of the Company
in accordance with the rules of the second (third) point of the No. 1 Explanatory Notice of Information
Disclosure about Publicly Issued Securities,: Non-current Gains and Loss (2008). The amount of the
Energy-saving and People-benefiting subsidy Changhong Air-conditioner got in 2009 was relatively lower, thus
it would be carefully disclosed as non-current gains and loss when calculating 2009 annual financial index.
With the growth of both scale of air-conditioners business and ratio of air-conditioners products with high
energy efficiency, the Company will get more subsidies with a huge amount. In order to fully reflect the
operation of the Company, according to the importance principle, the Company will include this subsidy in
recurrent gains and loss in this reporting period.
(II) Return on equity and earnings per share
In accordance with requirement of the No. 9 Rule of Information Disclosure Compiling of Public Listed
Companies: Calculation and Disclosure of Return on Equity and Earnings per Share (revised in 2010), the
weighted average return on equity, basic earnings per share and diluted earnings per share of the Company in
this period are as follow:
Earnings per share
Profit during the report Weighted average retun
period on equity(%) Basic earnings per Diluted earnings
share per share
Net profit attributable to
shareholders of parent 4.54% 0.2379 0.2379
company
Net profit attributable to
shareholders of parent
4.17% 0.2184 0.2184
company after deduction of
non-current gains and losses
XVIII. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for reporting
dated 1 August 2011.
Section VIII. Documents Available for Reference
I. The text of semi-annual report carrying the signature of Chairman of the Board;
II. The accounting statements carrying the signatures and seals of Chairman of the Board, Financial Principal
and Principal of Accounting Institutes;
III. Originals of all documents of the Company and manuscripts of public notices ever disclosed in the
newspapers designated by CSRC in the report period;
VI. Articles of Association of Hefei Meiling Co., Ltd.
191
Hefei Meiling Co., Ltd. Semi-annual Report 2011
The aforesaid documents are all available at headquarter of the Company. The Company would provide them
timely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to
the regulations and Articles of Association.
Chairman of the Board: Zhao Yong
Board of Directors of Hefei Meiling Co., Ltd.
August 2, 2011
192
