HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
HEFEI MEILING CO., LTD.
SEMI-ANNUAL REPORT 2013
August 2013
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Hefei Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no
any fictitious statements, misleading statements, or important omissions carried in the Semi-Annual
Report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
The Company did not have directors, supervisors and senior executives of the Company could
not guarantee the reality, accuracy and completion of the whole contents or have objections.
All the directors attended the board meeting on discussing the Semi-Annual Report in both
ways of site and communication.
The Company has no plans of cash dividend distributed, no bonus shares and has no share
converted from capital reserve either.
Chairman of the Company Mr. Liu Tibin, President Mr. Li Wei, CFO(Chief Financial Offier)
Mr. Zhang Xiaolong and Mr.Tang Bin, person in charge of accounting organ hereby confirm that
the Financial Report of Semi-Annual Report 2013 is authentic, accurate and complete.
The Financial Report of Semi-Annual Report 2013 of the Company had not been audited by
CPAs.
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Content
Section I. Important Notice, Contents and Paraphrase ........................................... 1
Section II. Company Profile ........................................................................................ 4
Section III. Accounting data and summary of financial indexes ............................. 6
Section IV. Report of the Board of Directors............................................................. 9
Section V. Important Events ..................................................................................... 33
Section VI. Changes in Shares and Particulars about Shareholders .................... 71
Section VII Particular about Directors, Supervisors, Senior Executives and Employees
..................................................................................................................................... 75
Section VIII. Financial Report.................................................................................. 76
Section IX. Documents Available for Reference ................................................. 210
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Paraphrase
Items Refers to Contents
Company, the Company or Meiling
Refers to HEFEI MEILING CO., LTD
Electric
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., LTD
shareholder
Changhong Group Refers to Sichuan Changhong Electronics Group Co., Ltd.
Hong Kong Changhong Refers to Changhong (Hong Kong) Trading Company Limited
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Xingtai Holding Refers to Hefei Xingtai Holding Group Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants Co., Ltd.
China Merchants Securities Refers to China Merchants Securities Co., Ltd.
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., LTD
Jiangxi Meiling Electric Refers to Jiangxi Meiling Electrical Co., Ltd.
Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd.
Huayi Compressor Refers to Huayi Compressor Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province
Anhui Securities Bureau Refers to
Securities Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section II. Company Profile
I. Company information
MEILINGDIANQI,
Short form of the Stock Stock code 000521, 200521
WANMEILING-B
Short form of the Stock after
N/A
changed (if applicable)
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 合肥美菱股份有限公司
Short form of the Company (in
美菱电器
Chinese)
Foreign name of the Company(if
HEFEI MEILING CO.,LTD.
applicable)
Abbr. of English name of the
HFML
Company(if applicable)
Legal representative Liu Tibin
II. Contact person and ways
Secretary of the Board
Name Li Xia
No. 2163, Lian Hua Road, Economic and Technology Development
Contact adds.
Zone, Hefei
Tel. 0551-62219021
Fax. 0551-62219021
E-mail lixia@meiling.com
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the
Company changed in reporting period or not
□ Applicable √ Not applicable
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Registrations address, offices address and codes as well as website and email of the Company
has no change in reporting period, found more details in Annual Report 2012.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish
appointed by CSRC and preparation place for semi-annual report have no change in reporting
period, found more details in Annual Report 2012.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license,
number of taxation registration and organization code have no change in reporting period, found
more details in Annual Report 2012.
4. Other relevant information
Whether other relevant information has changed in reporting period or not
□ Applicable √ Not applicable
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting
policy changed and accounting error correction or not
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y (%)
Operating revenue (RMB) 5,951,444,575.32 5,312,610,523.12 12.02%
Net profit attributable to shareholders of the
135,691,575.62 110,855,042.20 22.40%
listed company(RMB)
Net profit attributable to shareholders of the
listed company after deducting non-recurring 130,640,697.58 111,636,785.91 17.02%
gains and losses(RMB)
Net cash flow arising from operating
-143,298,557.77 -260,544,290.53 45.00%
activities(RMB)
Basic earnings per share (RMB/Share) 0.1777 0.1742 2.01%
Diluted earnings per share (RMB/Share) 0.1777 0.1742 2.01%
Weighted average ROE (%) 4.49% 3.89% 0.60%
Increase/decrease in this
End of current period End of last period report-end over that of
last period-end (%)
Total assets (RMB) 9,508,516,311.47 7,886,140,432.47 20.57%
Net assets attributable to shareholder of
3,091,069,169.37 2,955,787,652.31 4.58%
listed company(RMB)
Note: 763,739,20 shares counted as the denominator in calculation of the “basic earnings per share” and ”diluted earnings per share”
for the current period while 636,449,338 shares calculation for the same period of last year. Total share capital of the Company
increased without affected the amount of shareholders’ equity due to the capitalizing of common reserves implemented by the
Company in August 2012, total share capital of the Company up to 763,739,205 shares from 636,449,338 shares after increased. The
“basic earnings per share” and ”diluted earnings per share” for January to June of 2012 based on new share capital (763,739,205
shares) are counted as RMB 0.1451 both, therefore, the Period has a growth of 22.40% compare with same of last year.
Whether share capital of the Company, from period-end to the disclosure date of semi-annual report, has
changed and has influenced on amount of owners’ equity due to the new shares issuing, increase issues in stocks,
allotment, stock ownership incentive exercise and buy-back etc. or not
□Yes √No
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
II. Difference of the accounting data under accounting rules in and out of China
(I) Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□ Applicable √ Not applicable
(II) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □Not applicable
In RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
listed company listed company
Amount in this Amount in last Amount at
Amount at period-end
period period period-begin
Chinese GAAP 110,855,042.20 2,955,787,652.31
Items and amount adjusted by foreign accounting rules
-- -- -- -- --
Foreign accounting rules -- 110,855,042.20 -- 2,955,787,652.31
(III) Reasons for the differences of accounting data under accounting rules in and out of China
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was
issued from CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement
for companies who offering domestically listed foreign shares (B-share enterprise) while engaging securities
practice qualification CPA for auditing. The Company did not compile financial report under foreign accounting
rules since 2007, the financial report of the Company is complying on the “Accounting Standard for Business
Enterprise” in China, and therefore, there are no differences of accounting data under accounting rules in and out
of China at period-end.
III. Items and amounts of extraordinary profit (gains)/loss
In RMB
Item Amount Note
Found in “Non-operating
Gains/losses from the disposal of non-current asset
income and expenditure” of
(including the write-off that accrued for impairment of -3,166,097.14
Notes of Financial
assets)
accounting report
Governmental subsidy reckoned into current Found in “Non-operating
8,284,145.67
gains/losses (not including the subsidy enjoyed in quota income” of Notes of
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
or ration according to national standards, which are Financial accounting report
closely relevant to enterprise’s business)
Found in “Non-operating
Other non-operating income and expenditure except for income and expenditure” of
435,291.84
the aforementioned items Notes of Financial
accounting report
Impact on income tax 235,081.59 -
Impact on minority shareholders’ equity (post-tax) 267,380.74 -
Total 5,050,878.04 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items
defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---
Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section IV. Report of the Board of Directors
I. Summary
The macro-economy was still severe during the reporting period, with continuous depressed
global economy and slowing down of domestic economic growth. Besides, the emerging economies
faced certain difficulties. As to monetary market, Euro, JAP Yen and AUS Dollar experienced
depreciation except USD and RMB which remained strong and which experienced appreciation
continuously, respectively. As a result, the domestic economy recorded slowing growth. In
particular, GDP growth rate on a quarter basis recorded continuous decline for the 1st and 2nd
quarters of this year since its recovery against decline from the 4th quarter of 2012. In June, both of
import and export data of the PRC recorded decrease as compared to the same period of last year,
indicating unsatisfying import and export situation. As for home appliances industry, the
refrigerator market turned to make aggressive growth instead of large disc growth. The national
relevant industrial policies expired and terminated continuously, which urged the Company to make
industry transition and upgrade immediately and made the industrial competition more furious.
According to China Market Monitor (CMM), the market shares of the refrigerator, freezing box and
air conditioner of the Company improved during the period from January to June of 2013.
Under this background, the Company continued to implement the “double three” strategy
under the guidelines of “Meiling Dream” as proposed by the Board. It adhered to the operation
policy of “seize external opportunity, strengthen incentives, and improve sales volume; strengthen
internal management, improve efficiency and increase benefits” as determined by the Company as
the beginning of the year, aiming to creating its brand, product, operation and marketing capacity.
The Company actively responded to the adverse affects from external environment, continued to
enhance its comprehensive competitiveness and realized continuous and stable growth in operation
results. During the reporting period, the overall operation results of the Company was satisfying,
realizing total operating revenue of RMB 5,951,444,575.32 with an increase of 12.02%, and net
profit attributable to parent company of RMB 135,691,575.62 with an increase of 22.40%.
II. Analysis on major operations
(i)Summary
Business segment of refrigerator and freezing box: for the period from January to June 2013,
this segment realized revenue of RMB 3,698,006,881.56, with an increase of 4.92%. According to
CMM, Meiling refrigerators occupied market share of 10.09% in domestic market in terms of retail
sales for the period from January to June 2013, with an increase of 0.31 percentage points as
compared to the same period of 2012, ranking the 3rd position in terms of market share of single
brand; Meiling continued to increase its market share in mid-high end refrigerator market. For
example, in SBS refrigerator market, Meiling refrigerators accounted for 10.02% of the market
share for the period from January to June 2013, with an increase of 0.11 percentage points as
compared to the same period of 2012. Meiling freezing box occupied market share of 10.16% in
domestic market in terms of retail sales for the period from January to June 2013, with an increase
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
of 1.61 percentage points as compared to the same period of 2012, ranking the 4th position in market
share.
Business segment of air conditioner: for the period from January to June 2013, this segment
realized income of RMB 1,864,585,839.05, with an increase of 25.96%. According to CMM, air
conditioner segment occupied market share of 3.3% in domestic market in terms of retail sales for
the period from January to June 2013, with an increase of 0.2 percentage points as compared to the
same period of 2012.
Business segment of washer: this segment realized income of RMB69,580,523.51 in 2013,
with an increase of2.06 %.
(II) Year-on-year changes of main financial data
In RMB
Same period of last Y-o-y
Current period Reasons for changes
year increase/decrease (%)
Mainly because bank
acceptance received
in peak seasons
Note receivable 2,490,026,671.99 1,738,725,417.01 43.21 increased, and which
has not yet due for
collection in the
Period.
Mainly because sales
increased in the
Account receivables 1,150,796,995.41 753,762,080.84 52.67 Period, resulted by
the time different of
sales and amount
collected.
Mainly because
prepared for the
coming peak season,
Account paid in
160,540,856.24 49,414,835.51 224.88 account paid in
advance
advance for more
procurement
increased.
Mainly because the
Other account
250,578,232.84 31,288,336.44 700.87 subsidy of
receivable
energy-saving and
civil-benefit has not
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
collected yet.
Mainly because the
short-term
Short-term
459,268,050.00 45,456,805.14 910.34 borrowings from
borrowings
parent company
increased.
Mainly because
prepared for the
Account payable 2,339,285,831.36 1,462,293,958.34 59.97 coming peak season,
more procurement
increased.
Mainly because the
salary for December
Salary payable 76,205,784.37 137,325,501.89 -44.51 which was accrual for
year of 2012 and
annual bonus were
paid in the Period.
Mainly because new
Retained profit 521,435,836.67 385,744,261.05 35.18 profit increased in the
Period.
Operation revenue 5,951,444,575.32 5,312,610,523.12 12.02 -
Operation cost 4,526,354,103.23 4,043,977,198.26 11.93 -
Sales expenses 1,049,206,682.51 937,857,498.97 11.87 -
Administrative
169,954,161.54 158,911,541.76 6.95 -
expenses
Financial cost -36,240,925.89 -34,586,978.46 4.78 -
Mainly because the
Income tax expense 36,091,305.08 13,865,961.02 160.29 taxable amount
increased in the
Period.
R&D expenses 229,725,760.61 225,785,947.23 1.74 -
Operation tax and Mainly because the
58,543,334.84 43,172,959.76 35.60
surcharge accrual increased in
the Period and
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
disposal fund for
scrap electronic
products paid in the
Period while no such
charge at last year.
Mainly because
inventory turnover
ratio growth in the
Assets impairment
22,012,431.67 37,119,691.31 -40.70 Period and the
loss
inventory with long
period in stock
decreased.
Mainly because
losses from part of
the joint venture
Investment income 751,289.68 260,963.91 187.89 decreased y-o-y and
profit from part of the
joint venture growth
y-o-y.
Mainly because the
government subsidy
Non-operation
9,017,138.67 4,579,649.44 96.90 income recognized in
revenue
the Period increased
y-o-y.
Mainly because
disposal of
Non-operation
3,463,798.30 5,625,818.80 -38.43 non-current assets
expenses
decreased in the
Period.
Mainly because more
Net cash flow arising
note receivable are
from operation -143,298,557.77 -260,544,290.53 45.00
due for consignment
activities
in the Period
Mainly because
Net cash flow arising
purchasing fixed
from investment -9,754,481.45 -73,475,537.64 86.72
assets decreased in
activities
the Period from
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
parent company
Mainly because
Net cash flow arising short-term
from financing 402,848,863.38 94,225,024.64 327.54 borrowings from
activities parent company
growth in the Period
Net cash flow from
Net increase of cash operating activity and
255,142,493.78 -234,829,604.50 208.65
and cash equivalent financing activity
increased
(III)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
(IV)The future development and planning extended to reporting period that published in
disclosure documents as prospectus, private placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure
documents as prospectus, private placing memorandum and recapitalize statement
(V)Summary on the progress of the operation plan as disclosed previously by the
Company during the reporting period
During the reporting period, the Company mainly conducted the following works under its
development strategy and the operation policy for 2013 to arrange annual operation plan and
production operation:
1. Continued to carry out phoenix action to attract employees’ participation
The Company continued to carry out “Phoenix action” competition, pursuant to which, under
the final target of “within the following three years, the comprehensive market position of its
refrigerators and freezing box products in both domestic and overseas sales rank the second among
domestic enterprises” and the sub-targets that are expected to realize in 3 years, the Company
expected to stimulate enthusiasm of all the staffs through conduct of competition activity among the
systems and departments including manufacturing system, marketing system, overall-set matching
system and service supporting department, aiming to improve its operation capacity and system
efficiency, enhance its competitiveness and realize healthy and rapid development.
2. Hold external opportunities, emphasize on incentives and promote sales volume
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
The Company expects to improve its capacity in marketing and brand through external
opportunities, and improve the awareness of performance and responsibility of its employees
through increase performance review, finally to material improvements in domestic and overseas
sales.
As for domestic marketing, the Company actively adjusted its market positioning and market
strategy, holding firmly the upgrade trend of market structure. According to CMM, market share of
Meiling refrigerators in level I market recorded in increase of 0.26 percentage points for the period
from January to June 2013. during the reporting period, the Company accelerated upgrade of
products structure through increasing product research and development, and focused on developing
a series of Athena refrigerators and three-door electrical refrigerators for which sales volume
increased over 5% for the first half year. The Company focused on its traditional presence markets
and emerging strategic markets, and managed to expanded into certain emerging markets such as
e-business and engineering machine. In the first half year, the e-business of the Company recorded
an increase of over 200%. According to the national policy, the Company intensified promotion of
energy-saving products.
As for overseas marketing, the Company focused on cultivation of core major customers and
developing new customers, expanding ODM market and developing the air conditioning bases
in Pakistan and Indonesia. In the first half year, the delivery quantity of refrigerator (freezing box)
to core customers increased by over 40% as compared to previous year. The Company actively
seeks for opportunity in domestic and overseas markets, and prepares a series of promotion plans
and terminal promotion plans based on different periods in phases. Furthermore, it strengthens sales
incentive policy and realizes continuous enhancement in overseas products sales for the first half of
2013.
3. Increase internal management, improve efficiency and increase benefits
The Company improves its products competitiveness and operation capacity through enhanced
corporate governance and under the management mainline of “enhancement of three efficiencies”,
so as to satisfy such target and improve its profitability.
The Company defines internal functions and responsibilities, expressly determines
responsibility and obligations, strengthens performance review under KPI and establishes healthy
performance culture system; with the plans to optimize products, the Company carries out
integration of product platform, concentration on major types and efforts on star products. In the
first half of 2013, sales of star products increased substantially. Meanwhile, the Company applied
standardization and generalization to continuously improve its competitiveness. Through its
planning in respect of quality enhancement, the Company established quality system, strengthened
quality inspection and continued to improve product quality. Quality indicatives such as SCR and
approval rate of export inspection were improved greatly in the first half year; in terms of
production and manufacturing, the Company strengthened connection between production and sales,
improved efficiency in management and technology, formed flexible production capacity and
received obvious effects in improvement of manufacturing efficiency.
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
At the same time, the Company further strengthened internal control, and focused on
improvement in personnel, finance and materials, particularly on improvements in turnover rate of
finished products and turnover days of trade receivables, aiming to realize overall system
improvement. Its operation efficiency continued to get improved and profitability was further
released by virtues of continuous improvements in internal management
4. Implementation of “ten-year exchange of Athena refrigerator compressor for free”
Focusing on quality service, the Company strictly observed its commitment of “ten-years
exchange of Athena refrigerator compressor for free” with continuous improvement in product
quality and after-sales service, so as to enhance customers’ satisfaction. With further
implementation of the quality services including “ten-years exchange of Athena refrigerator
compressor for free”, the competitiveness of Athena refrigerator was further strengthened. In
particular, sales of Athena refrigerator recorded an increase of over 86% in the first half year.
III. Constitution of main business
In RMB
Increase or
Increase or Increase or
decrease of
Gross decrease of decrease of
gross profit
profit operating operating cost
Operating revenue Operating cost ratio over
ratio revenue over over same
same period
(%) same period of period of last
of last year
last year (%) year (%)
(%)
According to products
Refrigerator
3,698,006,881.56 2,769,769,582.32 25.10 4.92 6.17 -0.88
s, freezers
Air
conditionin 1,864,585,839.05 1,416,148,573.24 24.05 25.96 22.09 2.41
g
Washing
69,580,523.51 59,340,139.19 14.72 2.06 9.20 -5.57
machine
Others 70,393,867.38 51,448,643.75 26.91 8.40 -18.76 24.43
Total 5,702,567,111.50 4,296,706,938.50 24.65 10.99 10.55 0.30
According to region
Domestic 4,868,852,134.59 3,521,005,994.95 27.68 7.67 7.03 0.43
Foreign 833,714,976.91 775,700,943.55 6.96 35.40 29.98 3.88
Total 5,702,567,111.50 4,296,706,938.50 24.65 10.99 10.55 0.30
IV. Core competence analysis
1. Company strength
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
(1) Brand capacity
Hefei Meiling Co., Ltd., one of the famous home appliances manufacturers in the PRC, owns
several product lines such as refrigerator, freezing box and air conditioner. Meiling refrigerator, the
leading products of the Company falls within the national inspection-free products and the first
batch of national famous products. Meiling trademark is famous across the nation and listed as the
most valuable brands in the PRC. The Company firstly implemented the policy of “ten-year
exchange of Athena refrigerator compressor for free” in the industry, demonstrating further upgrade
of service in refrigerator industry or even the entire home appliance industry.
(2) Product capacity
The Company has been focusing on refrigerator industry for 30 years, launching hundreds of
refrigerator products of different types, including Athena series superior refrigerators, the coldest
refrigerator across the world with the record of -192℃ and top superior energy-saving refrigerator
with daily electricity consumption of 0.21 degree and other products which represented the
industrial development trend. As for product quality, the Company owned advanced development
and quality assurance systems, and received certification of ISO9001 and ISO14000 from domestic
and overseas authorities. The products of the Company have good quality and reliable capacities.
As for technology development, the Company owned national technology centers, and advanced
core technologies in energy-saving, air cooling, intelligence and copious cooling. Currently, the
Company is developing intelligent refrigerator and frequency conversion project. As for product
development, taking into account the customers’ requirements for product upgrade, the Company
focused on development of mid-high end products, double and three doors products with large
volume in 2013. As for Athena series products, the Company successively launched several new
products in types of 450, 537 and 560; as for three-door electrical-control products, new products in
series of 213, 241 and 261 were launched. Mid-high end products were improved in terms of
capacity and appearance. As for air conditioner products, the Company developed several frequency
conversion products by virtues of its own advantage and promoted research and development of
intelligent air conditioner project.
(3) Operation capacity
The Company actively learned from certain outstanding enterprises, carried out superior
management activity and enhanced its fundamental management. The Company continued to
improve the operation system of various business segments and joint ventures, improve value chain
and promote standardized operations. The Company established healthy internal control system,
strengthened management control, promoted standardized management through information and
prevented operation risks. In 2013, the Company carried out enhancements in personnel, capital and
materials, focusing on improvement of turnover rate of finished products and turnover days of trade
receivables. The Company has obtained certain achievements and enhanced systematic efficiency
on an overall basis.
(4) Marketing capacity
The Company established healthy sales network and service system. Meanwhile, it established
its business marketing model by means of joint ventures. The Company continued to intensify
construction of marketing team, and realized balanced development in various channels including
chain, wholesale and e-business, etc. also, construction of Changhong-Meiling outlet is being
progressed well. Meanwhile, the Company expanded into overseas markets with products exported
to more than 100 countries and regions around the world.
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HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
2. Potential risks and countermeasures
(1) Macro economic risks
Macro economy was still severe in 2013. Due to weak overseas demand and appreciation of
RMB, export faced increasing pressures. Domestic economy growth continued to slow down, real
estate market continued to be managed, factors bringing economic uncertainty increased and macro
situation was uncertain, all of which brought many unpredicted factors to home appliance industry.
(2) Industrial policy risk
In recent years, supporting from governmental policies materially affected home appliances
industry. Elimination of go-to-country policies led to depressed level III and level IV markets.
Termination of energy-saving people-beneficial project also affected products upgrades and market
sales. Meanwhile, prior to the release of new simulative policies, market would lack of such policy
stimulation, which makes the future development of home appliances enterprises uncertain and
results in increasing operating risks.
(3) Intensified industrial competition
Several home appliance enterprises successively expanded production scales in recent years,
resulting in surplus of production capacity. Moreover, certain black electricity brands also involved
in white electricity industries. Besides, the relevant industrial policy subsidy granted in previous
years overdraft future consumption capacity to a large extent. The market turned to make aggressive
growth instead of large disc growth. It is expected that market demand in the later half year would
be insufficient and decline as compared to the same period of previous year. Competition would be
more furious and industry reorganization is unavoidable. Unfavorable competition would lead to
disorder competition in market, resulting in material potential operation risks for home appliances
enterprises.
(4) Increase of labor cost
Influenced by the social factors including labor shortage, the labor cost increased greatly. This
industry is labor intensified industry which requires large quantity of operators, which in turn makes
the industry be subject to labor cost. Increase of labor cost resulted in increase of manufacturing
costs, accordingly the profit margin of the Company was reduced.
Facing the above risks, the Company, on the one side, will raise awareness of risk prevention,
and make advanced distribution in products, technology and markets. Particularly, it will further
optimize production crafts, increase proportion of automatic production, improve production yield,
reasonably control inventories of raw materials and finished products and improve human resources
planning. On the other side, the Company will, under the guidelines of “Meiling Dream”, actively
carry out “phoenix” competition activity, implement the operation policy of “seize external
opportunity, strengthen incentives, and improve sales volume; strengthen internal management,
improve efficiency and increase benefits, improve cost competitiveness, market share and brand
image, increase its comprehensive competitiveness, so as to realize sustainable development of the
Company.
3. Operation policy of the Company for the later half year
In front of severe macro economic situation and industry trend, the Company, under the
guidance of “Meiling Dream” and correct leadership of the Board, will rebuild its corporate culture,
establish core value idea of “honesty, wisdom and courage”, implement “double three” strategy and
adhere to the operation policy of “seize external opportunity, strengthen incentives, and improve
sales volume; strengthen internal management, improve efficiency and increase benefits”, striving
17
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
to become the respectful home appliance enterprise advanced in the PRC and the world and
realize “Meiling Dream”.
The major operation measures of the Company for the later half year:
(1) Under “seize external opportunity, strengthen incentives, and improve sales volume”, the
Company improves its capacity of marketing and brand
As for domestic marketing, the Company will continue to promote product structure upgrade
and market structure upgrade, with focus on development of mid-high end refrigerators such Athena
series and construction of level I and II markets; the Company will strengthen construction of
strategic markets and base markets, consolidate beneficial markets and improve weak markets; the
Company will increase market shares of emerging business such as e-business, and promote switch
of washer products. As for overseas marketing, the Company will continue to develop core major
customers and expand new businesses of its existing customers. As for European, Asian, African
and American markets, the Company adopts different strategies aiming to become larger and
stronger. In respect of air conditioner products, the Company will adjust product structure and
prepare high efficient inventory, increase of the sales proportion of frequency conversion machines;
meanwhile, with consideration of the intelligent development strategy and market competition trend,
the Company reorganizes its product lines, makes product planning and improve product
competitiveness.
(2) Under “strengthen internal management, improve efficiency and increase benefits”, the
Company improves its capacity of products and operations
The Company will continue to improve its operation capacity, set strict control over budget,
further determines the specific functions and responsibilities of various departments based on value
chain, raise awareness of responsibility, implement accounting system and performance review; the
Company will continue to promote concentration of platforms and products, build star products,
continue to reduce cost and improve product competitiveness; the Company will emphasize on
improvement of management and technology, stability of existing core staff and cultivation of new
core staff and enhancement of manufacturing efficiency; the Company will strengthen coordination
between production and sales, improve effective management of inventory, minimize
non-performing receivables, enhance capital effects, and realize personnel effects enhancement
through technology effect enhancement; the Company will optimize supply chain management,
improve delivery rate of export orders, shorten delivery cycle and promote expansion of overseas
operations.
V. Investment analysis
(I). Situation of equity investment outside
1. Situation of investment outside
Investment outside
Investment in the same period of last
Investment in the reporting (RMB) Changes (%)
year’s (RMB)
0 0 0
18
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Invested company
Equity proportion in invested
Name Main business
company for Listed company (%)
- - -
2. Holding equity of financial enterprise
Propo
Proport rtion
ion of of
Initial Shares
Shares held at shares share Book value at Gains/losses Accou
investment held at Resou
Name Type period-begin held at s held period-end in report nting
capital period-end rces
(Share) period- at (RMB) period (RMB) items
(RMB) (Share)
begin perio
(%) d-end
(%)
Long-t
Com
erm Initial
Huishang Bank merci
5,000,000.00 10,737,573 0.13% 10,737,573 0.13% 5,000,000.00 1,073,757.30 equity invest
Co., Ltd. al
invest ment
bank
ment
Total 5,000,000.00 10,737,573 -- 10,737,573 -- 5,000,000.00 1,073,757.30 -- --
3. Security investment
□ Applicable √ Not applicable
Explanation on equity of other listed company held
□ Applicable √ Not applicable
(II) Trust financing, derivative investment and trust loans
1. Trust financing
□ Applicable √ Not applicable
2. Derivative investment
□ Applicable √ Not applicable
Open position of derivative investment at period-end
□ Applicable √ Not applicable
19
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
3. Trust loans
□ Applicable √ Not applicable
(III) Actual usage of raised capitals
1. General usage of raised capital
In 10 thousand yuan
Total raised capitals 117,795.4320
Total raised capital invested in reporting period 7,324.0125
Total accumulative raised capital invested 82,950.6085
Total raised fund for changes its usage area in
0
report period
Total accumulative raised fund for changes its
0
usage area
Proportion of total accumulative raised fund for
0
changes its usage area (%)
Explanation on general usage of raised capital
Ended as 30 June 2013, accumulative raised capital actually used RMB 829,506,084.99, balance of raised capital
amounting as RMB 380,539,052.56 (including interest income RMB 32,090,817.55); in addition, the Company
had no situation of using idle raised funds to supply the current cash temporary.
2. Commitments of raised capital
20
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
In 10 thousand yuan
Total raised capitals 117,795.4320 Total raised capitals used in this Period 7,324.0125
Total raised fund for changes its usage area in report period 0
Total accumulative raised fund for changes its usage area 0 Total raised capitals used accumulated 82,950.6085
Proportion of total accumulative raised fund for changes its usage area 0.00%
Rea
ch
Investmen
the Project
Projects Amount of t program
pred feasibility
Committed changed or Total committed Total investment Amount accumulated till the
Predicted useable Realized interests in the icte was
investment not (including investment of after adjustment invested in investment till period-en
date of project reporting d changed
projects changed raised capitals (1) report period the period-end d
inter hugely or
partially) (2) (3)=(2)/(1
est not
)
or
not
21
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Capacity
expansion for 1st phase:2012.6 No Un-chan
Unchanged 73,000.00 73,000.00 4,438.8069 47,469.8484 65.03% nd
5,166.48
Athena Luxury 2 phase:2013.6 ged
refrigerator
Freezer capacity 1st phase:2011.1 Un-chan
Unchanged 30,000.00 30,000.00 2,885.2056 20,674.8457 68.92% nd
1,081.74 No
expansion project 2 phase:2013.4 ged
Expansion project
of environmental
Un-chan
and energy-saving Unchanged 11,000.00 11,000.00 - 11,009.1034 100.08% 2010.12 599.09 No
ged
refrigerators(Note
5)
Supplementary Un-chan
Unchanged 3,795.4320 3,795.4320 - 3,796.8110 100.04% - - -
current capitals ged
Total 117,795.4320 117,795.4320 7,324.0125 82,950.6085 70.42% - 6,847.31 - -
Capital invested in areas with fund raising out of the plan No fund raising out of the plan
Loans payment
to Bank(if - - - - - - - - - -
applicable)
Current capital
supplementation( - - - - - - - - - -
if applicable)
22
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Subtotal of
Capital
investment with - - - - - - - - -
fund raising out
of the plan
Total - - - - - - - - -
Reasons for falling behind the target progress or target income(By
Note1, Note 2
projects)
Statement for major change of project feasibility N/A
Amount, usage and progress of using for fund raising out of the plan N/A
Change of implementation place of investment project of raised capitals N/A
Regulation of implementation ways of investment project of raised
N/A
capitals
Preliminary investment and replacement of investment project of raised
Note 3
capitals
Note (II) Temporarily supplement for the current capitals with idle raised capitals
Temporarily supplement for the current capitals with idle raised capitals
Amount and reason for surplus of raised capitals when implementing
N/A
projects
23
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Usage of the retained raised fund and what is expected to invested with
Note 4
those fund
Problems exits in usage and disclosure of the raised fund and other
N/A
information
24
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Note 1: phase I and phase II of Athena superior refrigerator capacity expansion project have
been running and could reach the intended use and operate well, with annual capacity of 2,000,000
sets of Athena superior refrigerators.
Phase I and phase II of freezing box capacity expansion project have been running and could
reach the intended use and operate well, with annual capacity of 1,200,000 sets of freezing boxes.
In recent years, demands in home appliances market declined substantially, with great decline
in markets sales as compared to the same period of previous year. As for refrigerator and freezing
box industry, market sales also felled continuously and industrial competition was furious.
Furthermore, with increasing labor cost and transportation cost, the implementation of the projects
privately funded by the Company failed to reach the projected benefits.
Note 2: the capital invested in capacity expansion of Athena luxury refrigerators and capacity
expansion of freezers as actual schedule, 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.
Note 3: Substitution of preliminary investment in invested items of raised funds
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 15 January 2011. According to the approval, ended as 15 January 2011,
the particulars of self-collecting capitals investing in invested items of funds raised are as follows:
No. Name of projects Invested amount from self-collecting
1 Athena Luxury refrigerator production base 241,684.00
2 Freezer expansion project 72,959,508.44
3 Expansion project of environmental and energy-saving 15,580,344.77
Total 88,781,537.21
Note: part of the above accounts will be settled 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.
Note 4: Usage and flow of raising fund not used.
For the purpose of reducing the financial cost and higher the efficiency of raising fund, Partial
raising fund was withdrew the fixed deposit under the premise of no impact on the investment
project implementation.
Note 5: 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
25
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Meiling Refrigerator Co., Ltd. (“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.
The use of rasie funds project of the Company had no changes until now.
(II) Temporary supplementation of circulating capital 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 Board of Directors and 14th Meeting of 6th Board 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 RMB
60 million raised fund within 6 months term, which is from 25 March 2011 to 25 September 2011.
Meanwhile, independent directors and supervisors shows favor opinions for that. The used idle
raised fund of RMB60 million has been returned to the specific raised fund account on time dated 2
June 2011. The above matters have been disclosed by the Company in media including Securities
Times, China Securities Journal, Hong Kong Commercial Daily and www.cninfo.com.cn as notice
(No. 2011-017, No. 2011-018, No. 2011-019 and No. 2011-033) dated 26 March and 3 June 2011
respectively.
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 Board of Directors, 16th Meeting of 6th Board of
Supervisors and 2nd Extraordinary Shareholders’ General Meeting 2011. Partial raising fund was
consented for temporary supplementation for circulating capital, amount of RMB 500 million
within 6 months since the date of approval day from Shareholders’ General Meeting, which is from
23 June 2011 to 23 December 2011. Furthermore, the event has been approved by the sponsor and
independent directors. The used idle raised fund has been returned to the specific raised fund
account on time dated 1 December 2011. The above matters have been disclosed by the Company
in media including Securities Times, China Securities Journal, Hong Kong Commercial Daily and
www.cninfo.com.cn as notice (No.: 2011-034, No. 2011-035, No. 2011-037, No. 2011-042 and No.
2011-060) dated 8 June 2011, 24 June 2011 and 1 December 2011 respectively.
For purpose of higher the efficiency of raising fund, reducing 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 7th Meeting of 7th Board of Directors, 4th Meeting of 7th Board of
Supervisors and 5th Extraordinary Shareholders’ General Meeting 2011. Partial raising fund was
consented for temporary supplementation for circulating capital, amount of RMB 400 million
within 6 months since the date of approval day from Shareholders’ General Meeting, which is from
21 December 2011 to 21 June 2012. The used idle raised fund of n has been returned to the specific
raised fund account on time dated 22 May 2012. Furthermore, the event has been approved by the
sponsor and independent directors. The above matters have been disclosed by the Company in
media including Securities Times, China Securities Journal, Hong Kong Commercial Daily and
26
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
www.cninfo.com.cn as notice (No. 2011-061, No. 2011-062, No. 2011-063, No. 2011-068 and No.
2011-016) dated 6 December, 3 December 2011 and 23 May 2011 respectively.
For purpose of higher the efficiency of raising fund, reducing the financial expenses and
satisfy development need of the Company, the Proposal of temporary supplementation of
circulating capital from partial idle raising fund has been deliberated and approved by 13th Meeting
of 7th Board of Directors, 8th Meeting of 7th Board of Supervisors and 1st Extraordinary
Shareholders’ General Meeting 2012. Partial raising fund was consented for temporary
supplementation for circulating capital, amount of RMB 300 million within 6 months since the date
of approval day from Shareholders’ General Meeting, which is from 12 June 2012 to 12 December
2012. The used idle raised fund of n has been returned to the specific raised fund account on time
dated 20 November 2012. Furthermore, the event has been approved by the sponsor and
independent directors. The above matters have been disclosed by the Company in media including
Securities Times, China Securities Journal, Hong Kong Commercial Daily and www.cninfo.com.cn
as notice (No. 2012-017, No. 2012-018, No. 2012-019, No. 2012-025 and No. 2012-044) dated 26
May, 13 June 2012 and 21 November 2012 respectively.
In order to further raise the application efficiency of capital proceeds and reduce finance costs,
thus to bring maximum benefit for the Company and shareholders, as approved at the 21st meeting
of the 7th board, the 12th meeting of the 7th supervisory committee and the 3rd extraordinary general
meeting of 2012, the independent directors and sponsor of the Company agreed the Company to
apply part of idle capital proceeds to supplement current capital for temporary purpose. The amount
was RMB300 million, and the application term shall not exceed 6 months from the date as approved
at the general meeting, namely from 11 December 2012 to 11 June 2013. The used idle raised fund
has been returned to the specific raised fund account on time dated7 June 2013.The aforesaid issue
has been disclosed on the announcements (No. 2012-045, No. 2012-046, No. 2012-047, No.
2012-050 and No.2013-22) at Securities Times, China Securities Journal, Hong Kong Commercial
Daily and www.cninfo.com.cn on 24 November, 12 December 2012 and 8 June 2013.
Till now, the Company has been performing relevant duties under its commitments.
3. Changes of raise capital projects
□Applicable √ Not applicable
4. Project with fund raised
Introduction of fund raised project Disclosure date Disclosure index
Detail fund utilization and projects
Juchao Website
reference to the “Specific Report of
(www.cninfo.com.cn)- “Specific
Fund Raised Deposit and Actual
Report of Fund Raised Deposit and
Utilization of Funds in First Half 2013-8-16
Actual Utilization of Funds in First
Year of 2013 of the Board of Hefei
Half Year of 2013 of the Board of
Meiling Co., Ltd.” disclosed at the
Hefei Meiling Co., Ltd.”
same date
(IV) Main subsidiary of the Company and stock jointly company analysis
27
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
1. Subsidiary and stock jointly enterprise of the Company
Registered
Main
capital (10 Operation revenue Operation profit
Name Type Industry products Total assets (RMB) Net assets (RMB) Net profit (RMB)
thousand (RMB) (RMB)
or service
yuan)
Zhongke Meiling Deep-free
Subs
Low-temperature Manufac ze
idiar 6,000 102,522,002.03 79,201,314.79 29,602,809.03 2,840,164.69 3,092,282.42
Technology Co., turing refrigerato
y
Ltd. r, icebox
Sales and
Jiangxi Meiling Subs production
Manufac
Refrigeration Co., idiar of 4,000 80,252,496.97 53,362,333.44 8,909,218.58 -1,695,004.48 -662,705.04
turing
Ltd. y refrigerato
r
Sales and
Jiangxi Meiling Subs production
Manufac
Electrical Co., idiar of 5,000 181,289,449.40 82,779,286.07 180,657,531.94 4,153,403.26 4,208,104.11
turing
Ltd. y refrigerato
r
Sales and
Mianyang Meiling Subs production
Manufac
Refrigeration Co., idiar of 10,000 126,876,389.77 95,666,464.48 128,598,655.81 2,893,693.77 2,898,089.48
turing
Ltd. y refrigerato
r
Sales and
Sichuan
Subs production
Changchun Manufac
idiar of 20,000 1,526,342,196.02 422,664,407.18 1,584,305,002.85 62,769,329.65 53,469,313.72
Air-conditioner turing
y air-conditi
Co., Ltd.
oner
Sales and
Zhongshan Subs production
Manufac
Changhong idiar of 8,000 399,748,389.24 97,545,835.00 355,834,941.39 14,593,580.76 12,091,038.07
turing
Electric Co., LTD y air-conditi
oner
Sales of
Hefei Meiling
refrigerati
Electronic Subs
Manufac on
Appliance idiar 5,500 1,086,373,009.56 -110,132,660.63 2,783,855,266.07 -26,269,379.98 -24,369,960.95
turing appliance,
Marketing Co., y
air-conditi
Ltd.
oner,
28
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
washing
machine
and
general
merchandi
se
Manufactu
re of
washing
machine,
plastic
products,
fine
welded
pipe,
cooling
parts,
package
products
and
Hefei Meiling Subs
Manufac decoration
Group Holdings idiar 8,000 187,202,697.06 8,278,473.77 135,119,355.24 -900,999.26 -811,181.32
turing ; sales
Limited y
of
self-produ
ction
products
and raw
materials,
machinery
equipment
,
instrument
s and
general
merchandi
se
(V) Major project with non raised fund
In 10 thousand yuan
Amount actually
Total investment Amount invested
Project invested ended as Progress Project earnings
amount in the period
period-end
Relocation and
Officially put into The project
capacity 26,924.12 4,482.35 19,168.19
expansion project production in completed
29
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
of Jiangxi January 2013; up basically in end
Meiling Electric
to end of June of December
Co., Ltd.
2013, the project 2012 and put into
has completed production
and completed officially in
ending; most of January 2013;
the acceptance Jiangxi Meiling
has completed, Electric achieved
completion profit
acceptance approximately as
expected to be RMB 4.21
done within the million from
year and project January to June.
settlement still in
process
Total 26,924.12 4,482.35 19,168.19 -- --
Query date for temporary notice
disclosed on appointed website (if N/A
applicable)
Query index for temporary notice
disclosed on appointed website (if N/A
applicable)
VI. Prediction of business performance from January – September 2013
Estimation on accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation on reason
□ Applicable √ Not applicable
VII. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory
Committee
□ Applicable √ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend
plan and shares converted from capital reserve in particular
30
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
√Applicable □Not applicable
On 21 March 2013 and 6 June 2013, the “Profit Distribution Plan for year of 2012” was
deliberated and approved by 23rd meeting of 7th session of the Board, 13th meeting of 7th session of
supervisory committee and annual shareholders’ general meeting of 2012. Independent directors
also express independent acceptance opinion for the proposal. The Company agreed to distribute
RMB 0.5 (tax included) in cash for every 10 shares held by all shareholders of the Company based
on total share capital 763,739,205 shares dated 31 December 2012, took shareholders equity and
long-term development requirement of the Company into consideration overall. Cash dividend of
RMB38, 186,960.25 (tax included, cash dividend representing 16.72% of the distributable profit for
that year) was distributed in total. Total share capital of the Company remain unchanged after
distribution, the remaining retained profit RMB 499,554,282.32 accumulated will carry forward for
distribution in later years. The Company disclosed the profit distribution plan for year of 2012 on
15 July 2-13 and implemented the above said plans.
Found more details in Notice: No.2013-008, No.2013-009, No.2013-021 and No.2013-024
published respectively dated 22 March 2013, 7 June 2013 and 16 July 2013 on appointed website.
X. Profit distribution plan and capitalizing of common reserve plan for the Period
□ Applicable √ Not applicable
XI. Registration of research, communication and interview in reporting period
Main information
Date Place Way Type objects discussed and material
provided
Changjiang Securities,
Conference Operation of the
Field Huatai-PineBridge Fund
2013-01-14 room of the Institute Company, no materials
research Management Co., Ltd., Fortune
Company provided
SG Fund Management Co., Ltd.
Conference Operation of the
Field China International Fund
2013-01-17 room of the Institute Company, no materials
research Management Co., Ltd.
Company provided
Conference Operation of the
Field Donghai Securities Co., Ltd.,
2013-01-23 room of the Institute Company, no materials
research Guotai Funds
Company provided
Conference Operation of the
Field
2013-01-30 room of the Institute China Assets Management Company, no materials
research
Company provided
Conference Ping An Asset Management Co., Operation of the
Field
2013-03-25 room of the Institute Ltd., Sinolink Securities Co., Company, no materials
research
Company Ltd., Caitong Fund Management provided
31
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Co., Ltd., HFT Investment
Management Co., Ltd, Lombarda
China Fund Management Co.,
Ltd.
Everbright Securities Asset
Conference Management Co., Ltd., Guotai Operation of the
Field
2013-03-28 room of the Institute Funds, Nanjing Securities Co., Company, no materials
research
Company Ltd., China Merchants Securities provided
Co., Ltd., China AMC
Conference Operation of the
Field
2013-03-29 room of the Institute Northeast Securities Co., Ltd. Company, no materials
research
Company provided
Chang Xin Asset Management
Conference Operation of the
Field Co., Ltd., Xiangcai Securities
2013-04-25 room of the Institute Company, no materials
research Co., Ltd., Guoyuan Securities
Company provided
Co., Ltd.
Conference Operation of the
Field
2013-04-26 room of the Institute Great Wall Securities Co., Ltd. Company, no materials
research
Company provided
Founder Securities, ICBC Credit
Suisse Asset Management Co.,
Conference Operation of the
Field Ltd., Dongguan Securities Co.,
2013-05-08 room of the Institute Company, no materials
research Ltd., Changjiang Securities,
Company provided
China Investment Securities Co.,
Ltd.
Conference Operation of the
Field
2013-05-28 room of the Institute Minsheng Securities Company, no materials
research
Company provided
32
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section V. Important Events
I. Corporate governance
Actual corporate governance of the Company shows no difference with the Company Law and
requirement of relevant regulations from CSRC.
II. Material lawsuits and arbitration
□Applicable √ Not applicable
1. No material lawsuits and arbitration in the reporting
2. Other part of lawsuits and arbitration in the reporting
To maintain the independence and completeness of the trade mark and trade name Meiling,
following the principle of centralized management and unified use of trade mark and trade name,
the Company detailed combed and thoroughly checked the situation left over by history in which
the use the trademark and trade name are permitted before the acquisition of 100% property rights
of Hefei Meiling Holding Group co., LTD. (hereinafter referred to as the Meiling Group). As at the
end of reporting period, the litigation and arbitration Meiling brand involved is in the progress as
follows:
(1) The case of a subsidiary company named Hefei Meiling Group taking an action to Hefei
Meiling Household Appliances co., LTD for dissolving the Trademark License Agreement signed
before had ended. More details can be found in Annual Report 2012.
(2) The case concerning the removal of Trademark License Agreement and the compensation
for losses, signed by Meiling Group, Hefei Meiling Communication Technology Co., Ltd. and Hefei
Meiling cabinet Electrical Appliance Co., Ltd. and other companies, is applied to Hefei Arbitration
Commission, and has already in the trial, waiting for a ruling by Hefei Arbitration Commission.
III. Questions by media
□Applicable √ Not applicable
No questioned by media in the reporting period.
IV. Bankruptcy reorganization
□Applicable √ Not applicable
V. Assets transaction
(I) Acquisition of assets
Applicable √ Not applicable
33
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
(II) Assets sold
√Applicable □Not applicable
Net
profit
Ratio of Whethe
contribut Whethe
the r
ed to Relations r the
profit owners
listed Whethe hip with debts
Trading contribu hip of
company Impact on Pricin ra counterp and
Date price (in ted to the Disclos
Counterp from the g related arty liability Disclos
Assets sold for 10 listed assets ure
arty period-be Company princi transact (apply to have ure date
sales thousan compan have index
gin to (Note 3) ple ion or related been
d Yuan) y in been
date for not transacti transfer
total net transfer
sale (in on) totally
profit totally
10 or not
(%) or not
thousand
Yuan)
Benefit a
lot in
promoting
and Juchao
rapid-up website
the : Notice
process of of Part
manufactu of the
ring Lands
Land use resources Reserve
right of integration Reserv No.:
comprehen as a ed by 1 June 2013-0
Hefei Marke
sive whole, Not Hefei Not 2013 20; and
Land 2013-6 7,448.4 t
economic - meanwhile - No applicabl Land applica and 28 Notice
Reserve -25 884 princi
developme , produce e Reserv ble June of
Center ple
nt zone, the land e 2013 Progres
Longgang resources Center s of
Hefei results, Part of
activate the
the stock Lands
assets of Reserve
the s No.:
Company 2013-0
and 23
increase
more cash
inflow.
34
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Being
preliminar
y
estimated,
that the
Company
will earns
approxima
tely RMB
11 million
after the
land
compensat
ion
payable
from Hefei
Land
Reserve
Center
received(ti
me
uncertaint
y). Detail
accounting
treatment
subject to
the annual
audit
results by
CPA.
(III) Enterprise combination
□Applicable √ Not applicable
VI. Implementation and its influence of equity incentive plan
□Applicable √ Not applicable
VII. Material related transaction
(I) Related transaction with daily operation concerned
35
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
M
ar
Proporti Date
Se Clearing ke
Type of Related Related on in of
Related Content of related Pricing form for
ria Relationship related transactio transactio similar t Index of disclosure
party transaction principle related disclos
transaction n price n amount transacti
l transaction pr
ons (%) ure
ic
e
Sichuan Color 2013-3
Controlling Spot Juchao Website (www.cninfo.com.cn)
Changhong Commodity masterbatch, steel Marketing -22,
exchange or
1 shareholder and plate, electric 6081.61 6081.61 1.34% - No.:2013-008,2013-009,2013-011,201
Electric Co., purchased price bank 2013-6
melting, resistors,
ultimate controller acceptance 3-021
LTD accessory etc. -7
Other enterprise
2013-3
Huayi control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
2 Compressor same controlling Compressor 36107.46 36107.46 7.96% - No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
Co., Ltd. shareholder and 3-021
-7
ultimate controller
Other enterprise
Sichuan 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing Bank -22,
Plastic products
3 Mold Plastic same controlling 18300.48 18300.48 4.03% - No.:2013-008,2013-009,2013-011,201
purchased etc. price acceptance 2013-6
Tech. Co.,
shareholder and 3-021
Ltd. -7
ultimate controller
Other enterprise
2013-3
Sichuan control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Door shell, Marketing Bank -22,
4 same controlling 8490.76 8490.76 1.87% - No.:2013-008,2013-009,2013-011,201
Jijia Fine purchased baseboard etc. price acceptance 2013-6
Co., Ltd. shareholder and 3-021
-7
ultimate controller
Mianyang Other enterprise Commodity Marketing Bank 2013-3 Juchao Website(www.cninfo.com.cn)
5 Plastic parts 3.50 3.50 0.00% -
Hongfa control under the purchased price acceptance -22, No.:2013-008,2013-009,2013-011,201
36
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Mould same controlling 2013-6 3-021
Design Co., shareholder and -7
Ltd. ultimate controller
Other enterprise
Sichuan 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing Bank -22,
Packing case,
6 Package same controlling 1758.07 1758.07 0.39% - No.:2013-008,2013-009,2013-011,201
purchased printed matter etc. price acceptance 2013-6
Printing
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Other enterprise
Sichuan 2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Precision Commodity Marketing Bank -22,
7 same controlling PCB etc. 191.30 191.30 0.04% - No.:2013-008,2013-009,2013-011,201
Electronics purchased price acceptance 2013-6
Tech. Co., shareholder and 3-021
Ltd. -7
ultimate controller
Sichuan Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
8 New Energy same controlling Battery 35.52 35.52 0.01% - No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
Technology shareholder and 3-021
-7
Co., Ltd. ultimate controller
Sichuan
Liyuan Other enterprise
2013-3
Electronic control under the Juchao Website(www.cninfo.com.cn)
Commodity Transformer and Marketing Bank -22,
9 Co., Ltd. of same controlling 673.79 673.79 0.15% - No.:2013-008,2013-009,2013-011,201
purchased filter price acceptance 2013-6
081 shareholder and 3-021
-7
Electronic ultimate controller
Group
Other enterprise
2013-3
Mianyang control under the Juchao Website(www.cninfo.com.cn)
Hongrun Commodity Conductor line Marketing Bank -22,
10 same controlling 573.22 573.22 0.13% - No.:2013-008,2013-009,2013-011,201
Electronic purchased etc. price acceptance 2013-6
Co., Ltd. shareholder and 3-021
-7
ultimate controller
37
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Other enterprise
2013-3
Guangdong control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing Bank -22,
11 same controlling Foam pieces etc. 19.40 19.40 0.00% - No.:2013-008,2013-009,2013-011,201
Electronics purchased price acceptance 2013-6
Co., Ltd. shareholder and 3-021
-7
ultimate controller
Other enterprise
Mianyang 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Hongfa Commodity Marketing Bank -22,
12 same controlling Plastic parts 4.41 4.41 0.00% - No.:2013-008,2013-009,2013-011,201
Technology purchased price acceptance 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Guangdong Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
13 Digital same controlling Plastic parts 7.84 7.84 0.00% - No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
Technology shareholder and 3-021
-7
Co., Ltd. ultimate controller
Sichuan Other enterprise
2013-3
Changhong control under the Printed board, Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
14 Electronic same controlling remote control 1961.00 1961.00 0.43% - No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
Devices shareholder and and transformer 3-021
-7
Co., Ltd. ultimate controller
Sichuan Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
15 Xinrui same controlling Component 272.16 272.16 0.06% No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
Technology shareholder and 3-021
-7
Co., Ltd ultimate controller
Sichuan Spot 2013-3
Controlling Juchao Website(www.cninfo.com.cn)
Changhong Commodity Air-conditioner, Marketing exchange, -22,
16 shareholder and 71470.33 71470.33 12.01% - No.:2013-008,2013-009,2013-011,201
Electric Co., purchased refrigerator price Bank 2013-6
ultimate controller 3-021
LTD acceptance -7
17 Sichuan Controlling Commodity Air-conditioner Marketing 267.46 267.46 0.04% Spot - 2013-3 Juchao Website(www.cninfo.com.cn)
38
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Changhong shareholder and purchased price exchange, -22, No.:2013-008,2013-009,2013-011,201
Electronics ultimate controller Bank 2013-6 3-021
Group Co., acceptance -7
Ltd.
PT.CHANG Other enterprise
2013-3
HONG control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Spot -22,
18 ELECTRIC same controlling Air-conditioner 2977.40 2977.40 0.50% - No.:2013-008,2013-009,2013-011,201
purchased price exchange 2013-6
INDONESI shareholder and 3-021
-7
A ultimate controller
Other enterprise
Spot 2013-3
Sichuan control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing exchange, -22,
19 same controlling Air-conditioner 1814.08 1814.08 0.30% - No.:2013-008,2013-009,2013-011,201
Jijia Fine purchased price Bank 2013-6
Co., Ltd. shareholder and 3-021
acceptance -7
ultimate controller
Other enterprise
Sichuan Spot 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing exchange, -22,
20 Mold Plastic same controlling Air-conditioner 5577.96 5577.96 0.94% - No.:2013-008,2013-009,2013-011,201
Tech. Co., purchased price Bank 2013-6
shareholder and 3-021
Ltd. acceptance -7
ultimate controller
Other enterprise
Mianyang Air-conditioner, Spot 2013-3
LJY control under the Juchao Website(www.cninfo.com.cn)
Commerce- Commodity refrigerator, Marketing exchange, -22,
21 same controlling 237.14 237.14 0.04% - No.:2013-008,2013-009,2013-011,201
Trading purchased freezer and price Bank 2013-6
Chain Co., shareholder and 3-021
Ltd. washing machine acceptance -7
ultimate controller
Changhong Other enterprise
2013-3
(Hong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Spot -22,
22 Kong) same controlling Air-conditioner 14.01 14.01 0.00% - No.:2013-008,2013-009,2013-011,201
purchased price exchange 2013-6
Trading Co., shareholder and 3-021
-7
Ltd. ultimate controller
23 Chongqing Other enterprise Commodity Air-conditioner, Marketing 51.91 51.91 0.01% Spot - 2013-3 Juchao Website(www.cninfo.com.cn)
39
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Hong Life control under the purchased refrigerator and price exchange, -22, No.:2013-008,2013-009,2013-011,201
Commerce- same controlling washing machine Bank 2013-6 3-021
Trading Co., shareholder and acceptance -7
Ltd. ultimate controller
Sichuan Other enterprise
Spot 2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing exchange, -22,
24 New Energy same controlling Air-conditioner 31.62 31.62 0.01% - No.:2013-008,2013-009,2013-011,201
purchased price Bank 2013-6
Technology shareholder and 3-021
acceptance -7
Co., Ltd. ultimate controller
Other enterprise
Changhong 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Electric Commodity Air-conditioner, Marketing Spot -22,
25 same controlling 716.74 716.74 0.12% - No.:2013-008,2013-009,2013-011,201
(Australia) purchased refrigerator price exchange 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Guangdong Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Spot -22,
26 Digital same controlling Air-conditioner 103.04 103.04 0.02% - No.:2013-008,2013-009,2013-011,201
purchased price exchange 2013-6
Technology shareholder and 3-021
-7
Co., Ltd. ultimate controller
Sichuan Other enterprise
Spot 2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing exchange, -22,
27 Minsheng same controlling Air-conditioner 22.82 22.82 0.00% - No.:2013-008,2013-009,2013-011,201
purchased price Bank 2013-6
Logistic shareholder and 3-021
acceptance -7
Co., Ltd. ultimate controller
Sichuan
Other enterprise
Service Spot 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Exp. Commodity Air-conditioner, Marketing exchange, -22,
28 same controlling 418.95 418.95 0.07% - No.:2013-008,2013-009,2013-011,201
Appliance purchased spare parts price acceptance 2013-6
shareholder and 3-021
Service settlement -7
ultimate controller
Chain Co.,
40
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Ltd.
Other enterprise
Sichuan Spot 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing exchange, -22,
29 same controlling Air-conditioner 3.50 3.50 0.00% - No.:2013-008,2013-009,2013-011,201
Power Co., purchased price Bank 2013-6
shareholder and 3-021
Ltd. acceptance -7
ultimate controller
CHANGHO Other enterprise
2013-3
NG control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Spot -22,
30 ELECTRIC same controlling Air-conditioner 1796.39 1796.39 0.30% - No.:2013-008,2013-009,2013-011,201
purchased price exchange 2013-6
MIDDLE shareholder and 3-021
-7
EAST FZE ultimate controller
Sichuan
Other enterprise
Changhong Spot 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Gerun Commodity Marketing exchange, -22,
31 same controlling Air-conditioner 45.71 45.71 0.01% - No.:2013-008,2013-009,2013-011,201
Renewable purchased price Bank 2013-6
shareholder and 3-021
Resources acceptance -7
ultimate controller
Co., Ltd.
Other enterprise
Hefei 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing Bank -22,
32 same controlling Packing container 115.91 115.91 0.02% - No.:2013-008,2013-009,2013-011,201
Industrial purchased price acceptance 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Sichuan
Liyuan Other enterprise
2013-3
Electronic control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
33 Co., Ltd. of same controlling Air-conditioner 254.70 254.70 0.04% - No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
081 shareholder and 3-021
-7
Electronic ultimate controller
Group
34 Sichuan Other enterprise Commodity Air-conditioner Marketing 0.56 0.56 0.00% Bank - 2013-3 Juchao Website(www.cninfo.com.cn)
41
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Changhong control under the purchased price acceptance -22, No.:2013-008,2013-009,2013-011,201
Package same controlling 2013-6 3-021
Printing shareholder and -7
Co., Ltd. ultimate controller
Sichuan Other enterprise
2013-3
CCO control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
35 Display same controlling Air-conditioner 55.60 55.60 0.01% - No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
Device Co., shareholder and 3-021
-7
Ltd. ultimate controller
Sichuan Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Commodity Marketing Bank -22,
36 Devices same controlling Air-conditioner 0.51 0.51 0.00% - No.:2013-008,2013-009,2013-011,201
purchased price acceptance 2013-6
Tech. Co., shareholder and 3-021
-7
Ltd. ultimate controller
Other enterprise
Sichuan 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Hongwei Commodity Marketing Bank -22,
37 same controlling Air-conditioner 0.33 0.33 0.00% - No.:2013-008,2013-009,2013-011,201
Technology purchased price acceptance 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Other enterprise
Sichuan 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Hongxin Commodity Marketing Bank -22,
38 same controlling Air-conditioner 2.03 2.03 0.00% - No.:2013-008,2013-009,2013-011,201
Software purchased price acceptance 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Other enterprise
Sichuan 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Commodity Marketing Bank -22,
39 same controlling Air-conditioner 0.80 0.80 0.00% - No.:2013-008,2013-009,2013-011,201
Property purchased price acceptance 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
40 Sichuan Other enterprise Commodity Air-conditioner Marketing 264.52 264.52 0.04% Bank 2013-3 Juchao Website(www.cninfo.com.cn)
42
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Changhong control under the purchased price acceptance -22, No.:2013-008,2013-009,2013-011,201
Xinrui same controlling 2013-6 3-021
Technology shareholder and -7
Co., Ltd ultimate controller
Other enterprise
Sichuan 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Related Marketing Spot -22,
41 same controlling Plant 23.33 23.33 11.82% - No.:2013-008,2013-009,2013-011,201
Jijia Fine party lease price exchange 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Sichuan Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Related Marketing Spot -22,
42 Mold Plastic same controlling Plant 85.13 85.13 43.12% - No.:2013-008,2013-009,2013-011,201
party lease price exchange 2013-6
Tech. Co., shareholder and 3-021
-7
Ltd. ultimate controller
Other enterprise
Guangdong 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Changhong Related Office building, Marketing Spot -22,
43 same controlling 41.39 41.39 20.96% - No.:2013-008,2013-009,2013-011,201
Electronics party lease dormitory price exchange 2013-6
shareholder and 3-021
Co., Ltd. -7
ultimate controller
Guangdong Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Related Office building, Marketing Spot -22,
44 Digital same controlling 4.12 4.12 2.09% - No.:2013-008,2013-009,2013-011,201
party lease dormitory price exchange 2013-6
Technology shareholder and 3-021
-7
Co., Ltd. ultimate controller
Sichuan Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Related Marketing Spot -22,
45 Minsheng same controlling Office building 2.11 2.11 1.07% - No.:2013-008,2013-009,2013-011,201
party lease price exchange 2013-6
Logistic shareholder and 3-021
-7
Co., Ltd. ultimate controller
46 Sichuan Other enterprise Related Office building Marketing 1.72 1.72 0.87% Spot - 2013-3 Juchao Website(www.cninfo.com.cn)
43
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Service control under the party lease price exchange -22, No.:2013-008,2013-009,2013-011,201
Exp. same controlling 2013-6 3-021
Appliance shareholder and -7
Service ultimate controller
Chain Co.,
Ltd.
Sichuan Related Plant, storehouse 2013-3
Controlling Juchao Website(www.cninfo.com.cn)
Changhong party and office lands Marketing Spot -22,
47 shareholder and 322.91 322.91 6.96% - No.:2013-008,2013-009,2013-011,201
Electric Co., accepting operational price exchange 2013-6
ultimate controller 3-021
LTD leases rented, 、 -7
Sichuan Other enterprise
Related 2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
party Site operational Marketing Spot -22,
48 Minsheng same controlling 293.37 293.37 6.33% - No.:2013-008,2013-009,2013-011,201
accepting rented price exchange 2013-6
Logistic shareholder and 3-021
leases -7
Co., Ltd. ultimate controller
Sichuan 2013-3
Controlling Operating Juchao Website(www.cninfo.com.cn)
Changhong Filling tank, line Marketing Bank -22,
49 shareholder and fixed assets 984.88 984.88 20.89% - No.:2013-008,2013-009,2013-011,201
Electric Co., architecture price acceptance 2013-6
ultimate controller purchased 3-021
LTD -7
Other enterprise
Sichuan 2013-3
control under the Web Juchao Website(www.cninfo.com.cn)
Hongxin Fixed assets Marketing Bank -22,
50 same controlling development, 141.41 141.41 3.00% - No.:2013-008,2013-009,2013-011,201
Software purchased price acceptance 2013-6
shareholder and optimize system 3-021
Co., Ltd. -7
ultimate controller
Sichuan
Other enterprise
Service 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Exp. Sales of Disposal of assets Marketing Bank -22,
51 same controlling 5.00 5.00 1.94% - No.:2013-008,2013-009,2013-011,201
Appliance fixed assets plans to scrap price acceptance 2013-6
shareholder and 3-021
Service -7
ultimate controller
Chain Co.,
44
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Ltd.
Sichuan
Other enterprise
Changhong 2013-3
control under the Juchao Website(www.cninfo.com.cn)
Gerun Sales of Old instrument Marketing Bank -22,
52 same controlling 6.86 6.86 2.66% - No.:2013-008,2013-009,2013-011,201
Renewable fixed assets and computers price acceptance 2013-6
shareholder and 3-021
Resources -7
ultimate controller
Co., Ltd.
Sichuan Other enterprise
2013-3
Changhong control under the Juchao Website(www.cninfo.com.cn)
Sales of Disposal of assets Marketing Bank -22,
53 Mold Plastic same controlling 4.00 4.00 1.55% - No.:2013-008,2013-009,2013-011,201
fixed assets plans to scrap price acceptance 2013-6
Tech. Co., shareholder and 3-021
-7
Ltd. ultimate controller
Sichuan Spot 2013-3
Controlling Accepting Juchao Website(www.cninfo.com.cn)
Changhong Marketing exchange, -22,
54 shareholder and labor Service charge 638.06 638.06 2.32% - No.:2013-008,2013-009,2013-011,201
Electric Co., price Bank 2013-6
ultimate controller service 3-021
LTD acceptance -7
Sichuan Other enterprise
Transportation, Spot 2013-3
Changhong control under the Accepting Juchao Website(www.cninfo.com.cn)
warehousing and Marketing exchange, -22,
55 Minsheng same controlling labor 18929.44 18929.44 68.80% - No.:2013-008,2013-009,2013-011,201
loading and price Bank 2013-6
Logistic shareholder and service 3-021
unloading acceptance -7
Co., Ltd. ultimate controller
Sichuan
Service
Other enterprise
Exp. Spot 2013-3
control under the Accepting Juchao Website (www.cninfo.com.cn)
Appliance Marketing exchange, -22,
56 same controlling labor After-sale service 3648.18 3648.18 13.26% - No.:2013-003,2013-004,2013-007,201
Service price Bank 2013-6
shareholder and service 3-008,2013-009,2013-011,2013-021
Chain Co., acceptance -7
ultimate controller
Ltd. (Note
1)
45
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Other enterprise
Sichuan 2013-3
control under the Accepting Juchao Website(www.cninfo.com.cn)
Hongxin Marketing Bank -22,
57 same controlling labor Software service 50.00 50.00 0.18% - No.:2013-008,2013-009,2013-011,201
Software price acceptance 2013-6
shareholder and service 3-021
Co., Ltd. -7
ultimate controller
Other enterprise
Guangdong 2013-3
control under the Providing Juchao Website(www.cninfo.com.cn)
Changhong Water, electricity, Marketing Spot -22,
58 same parent fuel and 53.66 53.66 - - No.:2013-008,2013-009,2013-011,201
Electronics gas price exchange 2013-6
company and power 3-021
Co., Ltd. -7
ultimate controller
Guangdong Other enterprise
2013-3
Changhong control under the Providing Juchao Website(www.cninfo.com.cn)
Water, electricity, Marketing Spot -22,
59 Digital same parent fuel and 2.34 2.34 - - No.:2013-008,2013-009,2013-011,201
gas price exchange 2013-6
Technology company and power 3-021
-7
Co., Ltd. ultimate controller
Sichuan
Service Other enterprise
2013-3
Exp. control under the Providing Juchao Website(www.cninfo.com.cn)
Water, electricity, Marketing Spot -22,
60 Appliance same parent fuel and 0.13 0.13 - - No.:2013-008,2013-009,2013-011,201
gas price exchange 2013-6
Service company and power 3-021
-7
Chain Co., ultimate controller
Ltd.
Sichuan Other enterprise
2013-3
Changhong control under the Providing Juchao Website(www.cninfo.com.cn)
Water, electricity, Marketing Spot -22,
61 Minsheng same parent fuel and 1.76 1.76 - - No.:2013-008,2013-009,2013-011,201
gas price exchange 2013-6
Logistic company and power 3-021
-7
Co., Ltd. ultimate controller
Sichuan Other enterprise Providing 2013-3 Juchao Website(www.cninfo.com.cn)
Water, electricity, Marketing Spot
62 Changhong control under the fuel and 14.50 14.50 - - -22, No.:2013-008,2013-009,2013-011,201
gas price exchange
Jijia Fine same parent power 2013-6 3-021
46
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Co., Ltd. company and -7
ultimate controller
Sichuan Other enterprise
2013-3
Changhong control under the Providing Juchao Website(www.cninfo.com.cn)
Water, electricity, Marketing Spot -22,
63 Mold Plastic same parent fuel and 325.14 325.14 - - No.:2013-008,2013-009,2013-011,201
gas price exchange 2013-6
Tech. Co., company and power 3-021
-7
Ltd. ultimate controller
Other enterprise
2013-3
Huayi control under the Accepting Juchao Website(www.cninfo.com.cn)
Marketing Spot -22,
64 Compressor same controlling fule and Electricity, gas 43.47 43.47 - - No.:2013-008,2013-009,2013-011,201
price exchange 2013-6
Co., Ltd. shareholder and power 3-021
-7
ultimate controller
Total -- 186347.45 - -- -- -- --
Detail of sales return with major amount involved
Being deliberated and approved by annual shareholders general meeting of 2012, the daily related transaction amount for
year of 2013 was estimated as:
1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products
etc.) from Sichuan Changhong and its subsidiary by the Company for year of 2013 was RMB 810 million at most
(tax-excluded), actually RMB 381.0089 million occurred in reporting period (tax-excluded).
2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased etc.)
from Huayi Compressor and its subsidiary by the Company for year of 2013 was RMB 750 million at most (tax-excluded),
Report the actual implementation of the daily related transactions which were
actually RMB 363.7962 million occurred in reporting period (tax-excluded).
projected about their total amount by types during the reporting period(if
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and
applicable)
spare parts and molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2013 was RMB100
million at most (tax-excluded), actually RMB 11.4215 million occurred in reporting period (tax-excluded).
4. It is estimated that the related transaction amount resulted by purchasing goods from and providing fuel and power to
Sichuan Changhong and its subsidiary by the Company for year of 2013 was RMB 1900 million at most (tax-excluded),
actually RMB 866.4157 million occurred in reporting period (tax-excluded).
5. It is estimated that the related transaction amount resulted by purchasing compressed air, leasing facilities of automatic
fire protection system etc. and accepting logistic service from Huayi Compressor and its subsidiary by the Company for year
47
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
of 2013 was RMB 2.5 million at most (tax-excluded), actually RMB 434,700 occurred in reporting period (tax-excluded).
6. It is estimated that the related transaction amount resulted by leasing business from Sichuan Changhong and its subsidiary
by the Company for year of 2013 was RMB 50 million at most (tax-excluded), actually RMB 7.7408 million occurred in
reporting period (tax-excluded).
7. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan
Changhong Minsheng Logistic Co., Ltd. by the Company for year of 2013 was RMB 470 million at most (tax-excluded),
actually RMB 189.2944 million occurred in reporting period (tax-excluded).
8. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan
Service Exp. Appliance Service Chain Co., Ltd. by the Company for year of 2013 was RMB 180 million at most
(tax-excluded), actually RMB 36.4818 million occurred in reporting period (tax-excluded).
9. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing
other service and labor service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2012 was RMB 90
million at most (tax-excluded), actually RMB 6.8806 million occurred in reporting period (tax-excluded).
Reasons for major differences between trading price and market reference
Not applicable
price(if applicable)
Note 1: Being deliberated and approved by 22nd meeting of 7th session of the Board and 1st extraordinary shareholders’ general meeting of 2013, independent directors express approval opinion,
related shareholders and directors are avoided the voting, after public bidding, the domestic after-sales service were agreed to entrusted to the third party, the professional appliance after-sales
service enterprise--- Sichuan Service Exp. Appliance Service Chain Co., Ltd. (“Service Exp”). The entrusted business consist a related transaction due to the Service Exp. being the
wholly-owned controlling subsidiary of Sichuan Changhong Electric Co., LTD, the controlling shareholder of the Company. Daily related transaction for year of 2013 has estimated such
relations at the same time.
48
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
(II) Related transaction arising from assets acquisition and sold
No Related transaction arising from assets acquisition and sold in reporting period
(III) Material related transaction of jointly foreign investment
The Company has no material related transaction of jointly foreign investment occurred in reporting period
(IV) Connect of related liability and debt
Whether has non-operational contact of related liability and debts or not
□ Yes √No
49
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Whether has Balance at
Balance at
non-business Amount in the period-end
period-begin
Related party Relationship Debtor-creditor type Causes capital Period (10 (10
(10 thousand
occupying or thousand yuan) thousand
yuan)
not yuan)
Controlling shareholder and Claim receivable from Operational contact of related credit
Sichuan Changhong Electric Co., LTD No 52.99 -50.46 2.53
ultimate controller related party and debt
Sichuan Changhong Electronics Group Co., Controlling shareholder and Claim receivable from Operational contact of related credit
No 0.00 312.93 312.93
Ltd. ultimate controller related party and debt
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan Hongou Display Device Co., Ltd. No 13.16 0.00 13.16
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan Changhong Jijia Fine Co., Ltd. No 23.33 252.03 275.36
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Precision Electronic under the same controlling Claim receivable from Operational contact of related credit
No 42.73 -0.05 42.68
Technology Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Minsheng Logistic Co., under the same controlling Claim receivable from Operational contact of related credit
No 7.26 19.43 26.69
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Mold Plastic Tech. Co., Claim receivable from Operational contact of related credit
under the same controlling No 64.72 -23.67 41.05
Ltd. related party and debt
shareholder and ultimate
50
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
controller
Other enterprise control
Chongqing Hong Life Commerce-Trading Co., under the same controlling Claim receivable from Operational contact of related credit
No 0.03 3.78 3.81
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Service Exp. Appliance Service Chain under the same controlling Claim receivable from Operational contact of related credit
No 22.41 352.80 375.21
Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan CCO Display Technology Co., Ltd. No 0.75 0.00 0.75
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
PT.CHANGHONGELECTRICINDONESIA No 5157.18 -1524.85 3632.33
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Guangdong Changhong Electronics Co., Ltd. No 5.03 -5.03 0.00
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Changhong Electric (Australia) Co., Ltd. No 562.71 35.42 598.13
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Hefei Changhong Industrial Co., Ltd. No 155.69 -76.04 79.65
shareholder and ultimate related party and debt
controller
Mianyang Lejiayi Chain Trading Co., Ltd. Other enterprise control Claim receivable from Operational contact of related credit No 3.19 2.86 6.05
51
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
under the same controlling related party and debt
shareholder and ultimate
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Huayi Compressor Co., Ltd. No 0.00 0.00 0.00
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Hong Kong (Changhong) Trading Co., Ltd. No 13.33 0.68 14.01
shareholder and ultimate related party and debt
controller
Other enterprise control
Guangdong Changhong Digital Technology under the same controlling Claim receivable from Operational contact of related credit
No 0.00 84.00 84.00
Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan Changhong Devices Tech. Co., Ltd. No 0.00 0.60 0.60
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
CHANGHONGELECTRICMIDDLEEASTFZE No 0.00 768.55 768.55
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan Changhong Package Printing Co., Ltd. No 0.00 0.24 0.24
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Liyuan Electronic Co., Ltd. of 081 Claim receivable from Operational contact of related credit
under the same controlling No 0.00 208.60 208.60
Electronic Group related party and debt
shareholder and ultimate
52
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan Changhong Power Co., Ltd. No 0.00 4.10 4.10
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan Hongxin Software Co., Ltd. No 0.00 2.38 2.38
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong New Energy Technology under the same controlling Claim receivable from Operational contact of related credit
No 0.00 37.00 37.00
Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Devices Technology Co., under the same controlling Claim receivable from Operational contact of related credit
No 0.00 2.14 2.14
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong International Hotel Co., under the same controlling Claim receivable from Operational contact of related credit
No 1.11 -0.87 0.24
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Xinrui Technology Co., under the same controlling Claim receivable from Operational contact of related credit
No 15.91 218.31 234.22
Ltd shareholder and ultimate related party and debt
controller
Affiliated enterprise of
Claim receivable from Operational contact of related credit
Anhui Xinhao PDPs Co., Ltd. controlling shareholder and No 0.00 327.65 327.65
related party and debt
actual controller
Sichuan Changhong Electric Co., LTD Controlling shareholder and Debts payable to Operational contact of related credit No 2906.16 -548.63 2357.53
53
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
ultimate controller related party and debt
Sichuan Changhong Electronics Group Co., Controlling shareholder and Debts payable to Operational contact of related credit
No 6.06 0.00 6.06
Ltd. ultimate controller related party and debt
Other enterprise control
Sichuan Liyuan Electronic Co., Ltd. of 081 under the same controlling Debts payable to Operational contact of related credit
No 64.68 58.45 123.13
Electronic Group shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan Changhong Jijia Fine Co., Ltd. No 4199.52 4248.32 8447.84
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Precision Electronic under the same controlling Debts payable to Operational contact of related credit
No 81.81 127.42 209.23
Technology Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Minsheng Logistic Co., under the same controlling Debts payable to Operational contact of related credit
No 3492.93 807.05 4299.98
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Mold Plastic Tech. Co., under the same controlling Debts payable to Operational contact of related credit
No 6180.28 3107.36 9287.64
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan Changhong Devices Tech. Co., Ltd. No 0.30 -0.30 0.00
shareholder and ultimate related party and debt
controller
Other enterprise control
Debts payable to Operational contact of related credit
Sichuan Changhong Power Co., Ltd. under the same controlling No 3.92 0.32 4.24
related party and debt
shareholder and ultimate
54
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
controller
Other enterprise control
Sichuan Changhong New Energy Technology under the same controlling Debts payable to Operational contact of related credit
No 18.44 19.33 37.77
Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Mianyang Hongrun Electronic Co., Ltd. No 88.10 172.87 260.97
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Service Exp. Appliance Service Chain under the same controlling Debts payable to Operational contact of related credit
No 6.20 2273.50 2279.70
Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan Hongwei Technology Co., Ltd. No 0.21 0.93 1.14
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Electronic Devices Co., under the same controlling Debts payable to Operational contact of related credit
No 763.87 1004.95 1768.82
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Guangdong Changhong Electronics Co., Ltd. No 2.28 2.28
shareholder and ultimate related party and debt
controller 0.00
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan Hongxin Software Co., Ltd. No 0.00 25.50 25.50
shareholder and ultimate related party and debt
controller
Sichuan Changhong Package Printing Co., Ltd. Other enterprise control Debts payable to Operational contact of related credit No 809.50 -719.61 89.89
55
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
under the same controlling related party and debt
shareholder and ultimate
controller
Other enterprise control
Sichuan Changhong Gerun Renewable under the same controlling Debts payable to Operational contact of related credit
No 1.05 0.00 1.05
Resources Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Huayi Compressor Co., Ltd. No 9027.81 7230.82 16258.63
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Devices Technology Co., under the same controlling Debts payable to Operational contact of related credit
No 1.71 -1.71 0.00
Ltd. shareholder and ultimate related party and debt
controller
Affiliated enterprise of
Debts payable to Operational contact of related credit
Sichuan Changxin Refrigeration Parts Co., Ltd. Controlling shareholder and No 1311.83 597.50 1909.34
related party and debt
ultimate controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan Huafeng Corp. Group No 0.00 1246.69 1246.69
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong International Hotel Co., under the same controlling Debts payable to Operational contact of related credit
No 15.84 -10.53 5.31
Ltd. shareholder and ultimate related party and debt
controller
Affiliated enterprise of
Debts payable to Operational contact of related credit
Sichuan Hongyu Metal Manufacture Co., Ltd. Controlling shareholder and No 7.15 8.29 15.44
related party and debt
ultimate controller
Sichuan Changhong Xinrui Technology Co., Other enterprise control Debts payable to Operational contact of related credit No 0.00 228.84 228.84
56
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Ltd under the same controlling related party and debt
shareholder and ultimate
controller
Affiliated enterprise of
Sichuan Changhong Dongyuan Precision Debts payable to Operational contact of related credit
Controlling shareholder and No 1.29 34.76 36.05
Equipment Co., Ltd. related party and debt
ultimate controller
Controlling shareholder and Debts payable to Operational contact of related credit
Sichuan Changhong Electric Co., LTD No 35.43 2122.59 2158.02
ultimate controller related party and debt
Other enterprise control
Guangdong Changhong Digital Technology under the same controlling Debts payable to Operational contact of related credit
No 36.00 -36.00 0.00
Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Mianyang Lejiayi Chain Management Co., Ltd. No 1306.06 -1283.50 22.56
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Electronic System Co., under the same controlling Debts payable to Operational contact of related credit
No 0.00 0.00 0.00
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan Changhong Devices Tech. Co., Ltd. No 0.00 0.00 0.00
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Gerun Renewable under the same controlling Debts payable to Operational contact of related credit
No 0.41 0.00 0.41
Resources Co., Ltd. shareholder and ultimate related party and debt
controller
Chongqing Hong Life Commerce-Trading Co., Other enterprise control Debts payable to Operational contact of related credit
No 0.88 7.85 8.73
Ltd. under the same controlling related party and debt
57
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
shareholder and ultimate
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Chengdu Lejiayi Trading Co., Ltd. No 0.05 -0.02 0.03
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Liyuan Electronic Co., Ltd. of 081 under the same controlling Debts payable to Operational contact of related credit
No 89.40 -89.40 0.00
Electronic Group shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Wandone Network Technology Co., Ltd. No 0.00 0.20 0.20
shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan CCO Display Device Co., Ltd. No 0.00 1.37 1.37
shareholder and ultimate related party and debt
controller
Affiliated enterprise of
Sichuan Changhong Dongyuan Precision Debts payable to Operational contact of related credit
Controlling shareholder and No 0.00 0.11 0.11
Equipment Co., Ltd. related party and debt
ultimate controller
Controlling shareholder and Debts payable to Operational contact of related credit
Sichuan Changhong Electric Co., LTD No 575.65 928.26 1503.91
ultimate controller related party and debt
Sichuan Changhong Electronics Group Co., Controlling shareholder and Debts payable to Operational contact of related credit
No 0.00 0.87 0.87
Ltd. ultimate controller related party and debt
Other enterprise control
Sichuan Changhong Gerun Renewable under the same controlling Debts payable to Operational contact of related credit
No 1.00 0.00 1.00
Resources Co., Ltd. shareholder and ultimate related party and debt
controller
Sichuan Changhong Mold Plastic Tech. Co., Other enterprise control Debts payable to Operational contact of related credit No 32.00 0.20 32.20
58
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Ltd. under the same controlling related party and debt
shareholder and ultimate
controller
Other enterprise control
under the same controlling Debts payable to Operational contact of related credit
Sichuan Changhong Jijia Fine Co., Ltd. No 720.00 -698.90 21.10
shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Changhong Minsheng Logistic Co., under the same controlling Debts payable to Operational contact of related credit
No 1221.26 2021.02 3242.28
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Sichuan Service Exp. Appliance Service Chain under the same controlling Debts payable to Operational contact of related credit
No 758.69 46.78 805.47
Co., Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
Jingdezhen Honghua Home Appliance Parts under the same controlling Debts payable to Operational contact of related credit
No 5.00 0.00 5.00
Co., Ltd. shareholder and ultimate related party and debt
controller
Affiliated enterprise of
Sichuan Changhong Dongyuan Precision Debts payable to Operational contact of related credit
Controlling shareholder and No 22.79 0.00 22.79
Equipment Co., Ltd. related party and debt
ultimate controller
Other enterprise control
Sichuan Changhong International Hotel Co., under the same controlling Debts payable to Operational contact of related credit
No 0.31 -0.22 0.09
Ltd. shareholder and ultimate related party and debt
controller
Controlling shareholder and Claim receivable from Operational contact of related credit
Sichuan Changhong Electric Co., LTD No 12.87 36.15 49.02
ultimate controller related party and debt
Other enterprise control Claim receivable from Operational contact of related credit
Sichuan Jiahong Industrial Co., Ltd. No 250.00 -250.00 0.00
under the same controlling related party and debt
59
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
shareholder and ultimate
controller
Other enterprise control
Sichuan Changhong Minsheng Logistic Co., under the same controlling Claim receivable from Operational contact of related credit
No 2.97 -2.97 0.00
Ltd. shareholder and ultimate related party and debt
controller
Sichuan Changhong Electronics Group Co., Controlling shareholder and Claim receivable from Operational contact of related credit
No 3.95 -3.95 0.00
Ltd. ultimate controller related party and debt
Other enterprise control
Sichuan Changhong Mold Plastic Tech. Co., under the same controlling Claim receivable from Operational contact of related credit
No 1.00 32.36 33.36
Ltd. shareholder and ultimate related party and debt
controller
Other enterprise control
under the same controlling Claim receivable from Operational contact of related credit
Sichuan Changhong Jijia Fine Co., Ltd. No 0.00 11.66 11.66
shareholder and ultimate related party and debt
controller
For the above-mentioned statement, up to the Period-end, debts payable to related party from the Company and subordinate are amounting as
RMB 567.2917 million in total, the claim receivable from related party for the Company and subordinate amounting as RMB 71.8808 million.
60
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
(V) Other related transaction
□ Yes √No
VIII. Significant contract and implementations
(I) Entrust, contract and leasing
1. Entrust
(1) Explanation on entrust
□Applicable √ Not applicable
(2) Gains/losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period
□Applicable √ Not applicable
2. Contract
(1) Explanation on contract
□Applicable √ Not applicable
(2) Gains/losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period
□Applicable √ Not applicable
3. Leasing
(1) Explanation on leasing
□Applicable √ Not applicable
Operational leasing of the Company please found more details in “investment real estate”,
“fixed assets”, “Lease of related party” and “Rent of related party” in Note of Financial Statement.
(2) Gains/losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period
□Applicable √ Not applicable
(II) Guarantee
In reporting period, the Company has no guarantee for any legal person or nature person
except wholly-owned subsidiary, guarantee for wholly-owned subsidiary all exercise for loans
supporting operation needs with assurance guarantee offered; meanwhile, subordinate
wholly-owned subsidiary all provided counter guarantee for the relevant guarantee offered by the
Company. As of 30 June 2013, the Company offered credit granting to wholly-owned subsidiary.
61
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Except for Zhongshan Changhong, other subsidiary has no guarantee occurred actually. External
guarantee and guarantee for subsidiary are as:
In ten thousand yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Guarantee
Name of the Related Actual date of Guaran Complete
Guarantee Guarantee Guarante for related
Company Announcement happening (Date of tee implementatio
limit limit e type party (Yes
guaranteed disclosure date signing agreement) term n or not
or no)
N/A - - - - - - - -
Total approving external Total actual occurred
guarantee in report period - external guarantee in -
(A1) report period (A2)
Total actual balance
Total approved external
of external guarantee
guarantee at the end of - -
at the end of report
report period ( A3)
period (A4)
Guarantee of the Company for the subsidiaries
Name of the Related Actual date of Guarantee Guarante Guaran Complete Guarantee for
Guarantee
Company Announcement happening (Date of tee implement related party
limit e type
guaranteed disclosure date signing agreement) amount term ation or not (Yes or no)
Sichuan 2013-3-22,
Joint
Changhong 2013-6-7;
35,000.00 - 0.00 liability - - -
Air-conditioner No.: 2013-012,
guaranty
Co., Ltd. No.: 2013-021
2013-3-22,
Zhongshan Joint
2013-6-7;
Changhong 5,000.00 2012-4-23 5,000.00 liability 1-year No No
No.: 2013-012,
Electric Co., LTD guaranty
No.: 2013-021
Hefei Meiling 2013-3-22,
Joint
Nonferrous 2013-6-7;
4,000.00 - 0.00 liability - - -
Metals Products No.: 2013-012,
guaranty
Co., Ltd. No.: 2013-021
2013-3-22,
Hefei Meiling Joint
2013-6-7;
Package Products 2,500.00 - 0.00 liability - - -
No.: 2013-012,
Co., Ltd. guaranty
No.: 2013-021
Total amount of
Total amount of approving
actual occurred
guarantee for subsidiaries in 46,500.00 5,000.00
guarantee for
report period (B1)
subsidiaries in report
62
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
period (B2)
Total balance of
Total amount of approved
actual guarantee for
guarantee for subsidiaries at
46,500.00 subsidiaries at the 5,000.00
the end of reporting period
end of reporting
(B3)
period (B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Total amount of
Total amount of approving
actual occurred
guarantee in report period 46,500.00 5,000.00
guarantee in report
(A1+B1)
period (A2+B2)
Total balance of
Total amount of approved
actual guarantee at
guarantee at the end of 46,500.00 5,000.00
the end of report
report period (A3+B3)
period (A4+B4)
The proportion of the total amount of actually guarantee in the net assets
1.62%
of the Company(that is A4+ B4)
Including:
Amount of guarantee for shareholders, actual controller and its related
0
parties(C)
The debts guarantee amount provided for the guaranteed parties whose
5,000.00
assets-liability ratio exceed 70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of the Company
0
exceed 50%(E)
Total amount of the aforesaid three guarantees(C+D+E) 0
Explanations on possibly bearing joint and several liquidating
-
responsibilities for undue guarantees
Explanations on external guarantee against regulated procedures -
The above guarantees are all wholly-owned subsidiaries of the Company (including direct and
indirect shareholding proportion amounted to 100%). Production and operation of these companies
was normal with no overdue unpaid loans and guarantee risk is controllable. During the reporting
period, the highest level of security the Company provided amounted to 465,000,000 Yuan; the
actual amount of guarantee is 50,000,000 Yuan, accounting for the Company’s latest net assets ratio
of 1.62%, at the end of the reporting period, the practical guarantee amounted to 50,000,000 Yuan.
Explanation on guarantee with composite way
□Applicable √ Not applicable
(III) Other significant contract
□Applicable √ Not applicable
63
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
(IV) Other significant transaction
□Applicable √ Not applicable
IX.Commitments from the Company or shareholder with over 5% share held in
reporting period or occurred in prior period but continues to reporting period
64
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Commitment Acceptor Content Date Term Implementation
1. The acquirer shall not engage in refrigerator business or
Promised in the activity which competes or will compete with business of Valid for
Strictly implemented
Acquisition Report Meiling Electrical Appliances, or that which has interest long term
of Hefei Meiling conflict with Meiling Electrical Appliances.
Co., Ltd: after 2. The acquirer promises to apply shareholders’ right on a legal
Valid for
completion of equity and reasonable manner and shall not take any action to limit or Strictly implemented
long term
Commitments acquisition of affect the normal operation of Meiling Electrical Appliances.
made in Meiling Electrical
Sichuan 3. For any opportunity to engage in competing business, the
acquisition Appliances, the
Changhong acquirer will advise Meiling Electrical Appliances in written 2007-6-12
report or equity acquirer committed
for engaging such business or not. If Meiling Electrical
change report and promised as
Appliances gives no clear written reply as to whether engaging
follows in order to
the competing business or not within 20 days after receipt of Valid for
prevent Strictly implemented
the aforesaid letter, it shall be deemed that it will not engage in long term
horizontal competiti
such business. The acquirer will only engage in non-competing
on:
business provided that Meiling Electrical Appliances confirms
not to or is deemed to not engage in such non-competing
business.
1. It will not engage in such business or activity that competes
Commitment with or has interest conflict with that of Meiling Electrical
regarding to Appliances except for the action taken for sake of Meiling
Commitment
reducing and Electrical Appliances as required by Meiling Electrical
made during Sichuan Valid for
preventing Appliances. 2010-6-24 Strictly implemented
the non-public Changhong long term
competition with 2. The Company promises to apply shareholders’ right on a
offer
Meiling Electrical legal and reasonable manner and shall not take any action to
Appliances limit or affect the normal operation of Meiling Electrical
Appliances.
65
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
3. In case that Meiling Electrical Appliances expects, on the
basis of its existing business, to expand its operation scope into
the business which the Company has already operated, the
Company agrees to grant pre emptive right to Meiling
Electrical Appliances regarding such business if the same
conditions are met, provided that the Company is still the
controlling shareholder or actual controller of Meiling
Electrical Appliances.
1. Measures will be adopted to prevent continued related
transaction with Meiling Electrical Appliances: as to the
related transaction that can not be prevented, it will sign
Commitment related transaction agreement with Meiling Electrical
regarding to Appliances under the market principles of “equally paid and
reducing and mutual benefit”, and fairly determined the transaction price
Valid for
standardizing related according to the market prevailing standards. 2010-6-24 Strictly implemented
long term
transaction with 2. Perform the necessary obligations to make related directors
Meiling Electrical and related shareholder abstain from voting according to
Appliances relevant regulation, and observe legal procedure for approving
related transaction and information disclosure obligations.
3. Promise not to hurt legal interests of Meiling Electrical
Appliances and other shareholders through related transaction.
10 January
Commitment on restriction period of the shares subscribed by Meiling Electrical
2010-12-2 2011 to 10
Appliances by non-public offering: the shares allocated are locked for 36 months Implementing
3 January
automatically from the registration date under relevant regulations.
2014
66
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Before
Commit to transfer the land and buildings to Changhong Air Conditioning upon
completion
determination of assets property; urge its subsidiary Sichuan Changhong Minsheng
2010-9-7 of
Logistics Co., Ltd. transfer the land and buildings held by the company to Mianyang
implementat
Meiling upon determination of assets property
ion
Commit to authorized Changhong Air Conditioning and Zhongshan Air Conditioning Valid for
2010-11-6 Strictly implemented
to use “Changhong” trademark and relevant patents for free. long term
Before
Changhong
completion
Minsheng Changhong Minsheng Logistics Co., Ltd. commits to transfer the land and buildings
2010-9-7 of Implementing
Logistics to Mianyang Meiling upon determination of the relevant building title certificate.
implementat
Co., Ltd.
ion
1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and
prompt manner, to disclose all the information that have important influences over
investors, to accept supervision under the CSRC and Shenzhen Stock Exchange.
2. Commit to make public clarification in respect of such information that is released
from any public media and may result in misleading influences on stock price once
the Company is aware of such information.
The Valid for
3. The directors, supervisors, senior management and core technicians of the 2011-1-7 Strictly implemented
Company long term
Company will accept opinions and criticism from the social publics, and they will
not trade the Company’s securities, directly or indirectly, with any inside information
and other illegal methods. The Company promises that the documents submitted to
Shenzhen Stock Exchange exist no false statement or material omission, and no
relevant information will be disclosed during the application for listing without prior
content from Shenzhen Stock Exchange.
67
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
1. The current capital supplemented with certain idle proceeds is only authorized to
use for production operation purposes.
2. The idle proceeds supplementing current capital will be returned to proceeds
Commitment in account upon maturity.
11 On 7 June 2013, the idle
respect of 3. If acceleration of project construction results in early application of proceeds, the December raised fund has return to
applying certain Company shall return the capital to proceeds account ahead of time, thus not to 2012 the specific account.
idle proceeds in The affect the normal progress of the investment project that the proceeds are related to, 2012-12-1
to The commitment 1-3
supplement Company and not to change the application purpose of proceeds raised. 1
11 has completed and
current capital
4. the Company commits that during the 12 months after application of the idle December commitment 4 still in
for temporary
proceeds supplementing current capital, it will not make securities investment or risk 2013 implementation
purpose
investment amounting over RMB10 million; not apply such proceeds, directly or
indirectly, in placing or subscription of new share, or trading stocks, the underlying
derivatives and convertible bonds; not to change application purpose of proceeds and
hurt shareholders’ interests.
1. Since the property transfer didn’t involve the buildings and land currently used by
Before
Changhong Air Conditioning, Sichuan Changhong commits, upon the completion of
completion
equity transfer, to continue to lease such assets to Changhong Air Conditioning at
of Implementing
market price, and negotiate with Meiling Electrical Appliances in respect of the
implementat
transfer of the buildings and land according to the operation needs of Changhong Air
Commitment ion
Conditioning.
made in
Sichuan 2. After completion of this property transfer, Sichuan Changhong commits to manage 2009-12-1
transfer of air
Changhong to prevent new related transaction with Meiling Electrical Appliances. For those 0
conditioning Valid for
which can not be prevented, Sichuan Changhong commits to determine the Strictly implemented
assets property long term
transaction price based on market accepted methods, so as to ensure fairness of
related transaction and protection of the interest of Meiling Electrical Appliances.
3. Sichuan Changhong commits that it will not engage in air conditioning and
Valid for
refrigerator business or activity which competes or will compete with business of Strictly implemented
long term
Meiling Electrical Appliances, or that which has interest conflict with Meiling
68
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Electrical Appliances.
Perform the
commitment √ Yes □ No □ Non-applicable
promptly or not
Specific reason
for
non-performa
-
nce and the
next plan
Make
commitment in
respect of the
competition and □Yes √No
related
transaction or
not
Solution period
-
for commitment
Solution
-
method
Performance of
-
commitment
69
合肥美菱股份有限公司 2013 年半年度报告
X. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
XI. Penalty and rectification
□Applicable √ Not applicable
Statement of rectification
□Applicable √ Not applicable
XII. Other significant issues
(I)Release of restriction of restricted shares
On 5 February 2013, the 6th batch of circulating shares with restricted condition after the
implementation of equity division reform were released from restriction and listed for trading. 4
shareholders were released in total with 1,138,205 shares released, representing 0.1490% of the
total share capital of the Company. For details, please refer to the relevant announcement (No.
2013-006) disclosed at Securities Times, China Securities Journal, Hong Kong Commercial Daily
and www.cninfo.com.cn on 1 February 2013.
70
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
Before the Change Increase/Decrease in the Change (+, -) After the Change
B
on Capitaliz
New
Proport us ation of Proporti
Amount shares Others Subtotal Amount
ion (%) sh public on (%)
issued
ar reserve
es
I. Restricted shares 66,468,273 8.70% -1,138,205 -1,138,205 65,330,068 8.55%
1. State-owned shares
2. State-owned legal 56,309,236
57,030,632 7.46% -721,396 -721,396 7.37%
person’s shares
3. Other domestic shares 9,437,641 1.24% -416,809 -416,809 9,020,832 1.18%
Including: Domestic
non-state-owned legal 9,209,254 1.21% -312,607 -312,607 8,896,647 1.16%
person’s shares
Domestic natural person’s
228,387 0.03% -104,202 -104,202 124,185 0.02%
shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
5. Senior executives’
shares
II. Unrestricted shares 697,270,932 91.30% +1,138,205 +1,138,205 698,409,137 91.45%
1. RMB Ordinary shares 534,406,932 69.98% +1,138,205 +1,138,205 535,545,137 70.13%
2. Domestically listed
162,864,000 21.32% 0 0 162,864,000 21.32%
foreign shares
3. Overseas listed foreign
shares
4. Others
100.00 763,739,205
III. Total shares 763,739,205 - - 100.00%
%
(I) Reasons for share changed
√Applicable □Not applicable
The 6th restricted circulating shares after implementation of share-split reform was un-lock for
trading dated 5 February 2013. Totally 4 shareholders are have shares released, un-lock shares
amounting as 1,138,205 shares, a 0.1490% in total share capital of the Company.
(II) Approval of share changed
□ Applicable √ Not applicable
(III) Ownership transfer of restricted share changed
√Applicable □Not applicable
In the reporting, for the restricted shares of the Company, 245,916 shares held by former Hefei
71
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
East Refrigerator Accessories Factory were transfer ownership to Hefei East Refrigerator
Accessories Co., Ltd.; 122,958 shares held by former Feidong Vacuum Coating Factory were
transfer ownership to Hefei Wanda Vacuum Coating Factory.
(IV) Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets
per share attributable to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
(V) Other information necessary to disclose for the Company or need to disclosed under
requirement from security regulators
□ Applicable √ Not applicable
(VI) Explanation on changes of total shares, shareholders structure and assets & liability
structures
□ Applicable √ Not applicable
II. Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total shareholders in reporting
63,408
period
Particular about top ten shareholders
Number of
share
Proportio Total
Amount of Amount of pledged/fro
Full name of Nature of n of shareholders Changes in zen
restricted un-restricted
Shareholders shareholder shares at the end of report period
shares held shares held State
held (%) report period Amo
of
unt
share
Sichuan Changhong State-owned
21.58% 164,828,330 - 56,031,120 108,797,210 - -
Electric Co., LTD legal person
Hefei Xingtai
State-owned
Holding Group Co., 6.26% 47,823,401 - - 47,823,401 - -
legal person
Ltd.
Zhengde life Domestic
insurance Co., non
3.77% 28,800,000 - - 28,800,000 - -
LTD-universal state-owned
insurance products corporate
Changhong (Hong
foreign legal
Kong) Trading 3.30% 25,165,823 - - 25,165,823 - -
person
Company Limited
GUOTAI JUNAN
foreign legal
SECURITIES(HON 2.16% 16,484,083 28,800 - 16,484,083 - -
person
GKONG) LIMITED
Domestic
Ningbo Wei
non
Chuang Joint Invest 1.70% 12,960,000 - - 12,960,000 - -
state-owned
ment Co., Ltd.
corporate
Foreign
CAO
natural 1.68% 12,827,100 7,000 - 12,827,100 - -
SHENGCHUN
person
72
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Domestic
Jiujia Securities non
0.67% 5,152,147 5,152,147 - 5,152,147 - -
Investment Funds state-owned
corporate
ICBC-Fullgoal Domestic
Hu-Shen 300 Boost non
0.64% 4,910,100 4,910,100 - 4,910,100 - -
Securities state-owned
Investment Funds corporate
Bank of China –
Domestic
Guotai Jinpeng
non
Blue-chip Value Mix 0.45% 3,400,601 3,400,601 - 3,400,601 - -
state-owned
Securities
corporate
Investment Funds
Strategy investors or general legal
person becomes top 10
Not applicable
shareholders due to rights issued
(if applicable)
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the
wholly-owned subsidiary of Sichuan Changhong Electronic Co., Ltd.; there
existed no associated relationship or belong to the concerted actors as specified in
the Measures for the Administration of Information Disclosure of Shareholder
Explanation on associated Equity Changes of Listed Companies among Sichuan Changhong Electronic Co.,
relationship among the aforesaid Ltd., Changhong (Hong Kong) Trade Co., Ltd. and other top 8 shareholders; and
shareholders top ten shareholders with unrestricted subscription; as the Company has not
known whether there exists any business relationship among the other
shareholders with unrestricted 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.
Particular about top ten shareholders with un-restrict shares held
Amount of Type of shares
unrestricted shares
Shareholders’ name
held at reporting Type Amount
period-end
Sichuan Changhong Electric Co., LTD RMB ordinary
108,797,210 108,797,210
shares
Hefei Xingtai Holding Group Co., Ltd. RMB ordinary
47,823,401 47,823,401
shares
Zhengde life insurance Co., LTD-universal insurance RMB ordinary
28,800,000 28,800,000
products shares
Changhong (Hong Kong) Trading Company Limited Domestically
25,165,823 listed foreign 25,165,823
shares
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED Domestically
16,484,083 listed foreign 16,484,083
shares
RMB ordinary
Ningbo Wei Chuang Joint Investment Co., Ltd. 12,960,000 12,960,000
shares
CAO SHENGCHUN Domestically
12,827,100 listed foreign 12,827,100
shares
Jiujia Securities Investment Funds RMB ordinary
5,152,147 5,152,147
shares
73
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
ICBC-Fullgoal Hu-Shen 300 Boost Securities Investment RMB ordinary
4,910,100 4,910,100
Funds shares
Bank of China – Guotai Jinpeng Blue-chip Value Mix RMB ordinary
3,400,601 3,400,601
Securities Investment Funds shares
Among the above shareholders, Changhong (Hong
Kong) Trade Co., Ltd. is the wholly-owned subsidiary of
Sichuan Changhong Electronic Co., Ltd.; there existed
no associated relationship or belong to the concerted
actors as specified in the Measures for the
Administration of Information Disclosure of Shareholder
Equity Changes of Listed Companies among Sichuan
Expiation on associated relationship or consistent actors
Changhong Electronic Co., Ltd., Changhong (Hong
within the top 10 un-restrict shareholders and between top
Kong) and other top 8 shareholders; and top ten
10 un-restrict shareholders and top 10 shareholders
shareholders with unrestricted subscription; as the
Company has not known whether there exists any
business relationship among the other shareholders with
unrestricted 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 on shareholders involving margin business (if
Not applicable
applicable)
Whether has a buy-back agreement dealing in reporting period
□Yes √No
III. Shareholder and actual controller
(I)Changes of controlling shareholder in reporting period
□Applicable √Not applicable
(II)Changes of actual controller in reporting period
□Applicable √Not applicable
74
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section VII Particular about Directors, Supervisors, Senior Executives
and Employees
I. Changes of shares held by directors, supervisors and senior executive
□Applicable √Not applicable
Shares held by directors, supervisors and senior executive of the Company had no changes,
more details can be seen in Annual Report 2012.
II. New appointment and employment of directors, supervisors and senior executive
1. Being deliberated and approved on 22nd meeting of 7th session of the Board dated 28 January
2013, Mr. Liao Tao consented to engage as deputy president of the Company and Mr. Li Daijiang
served as no deputy president for the Company. Mr. Liaotao has no shares of the Company held in
reporting period.
2. Being deliberated and approved on 24th meeting of 7th session of the Board dated 18 April
2013, Mr. Zhang Xiaolong consented to engage as deputy CFO (person in charge of finance) of the
Company and Mr. Yu Wanchun served as no deputy vice president for the Company. Mr. Zhang
Xiaolong has no shares of the Company held in reporting period.
3. Being deliberated and approved on 2012 Annual Shareholders’ General Meeting dated 6
June 2013, Ms. Hu Jia was elected to engage as the supervisor of 7th Board of Supervisors of the
Company and Mr. Ye Honglin served as no deputy supervisor for the Company. Ms. Hu Jia has no
shares of the Company held in reporting period.
III. Post-leaving and dismissals for directors, supervisors and senior executives
Name Title Type Date Reasons
Served no vice president of the Company due
to occupation mobility; will serves as vice
Office
Li Daijiang Vice President 2013-1-28 GM of Sichuan Changhong Air-conditioner
leaving
Co., Ltd.—subordinate subsidiary of the
Company
Office Served no vice president of the Company due
Yu Wanchun Vice President 2013-4-18
leaving to occupation mobility
75
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section VIII. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Hefei Meiling Co., Ltd. 2013-6-30 Unit: RMB
Items Note Balance at period-end Balance at period-begin
Current assets:
Monetary funds 1,956,450,071.91 1,701,307,578.13
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 2,490,026,671.99 1,738,725,417.01
Accounts receivable 1,150,796,995.41 753,762,080.84
Accounts paid in advance 160,540,856.24 49,414,835.51
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 250,578,232.84 31,288,336.44
Purchase restituted finance
asset
Inventories 1,431,358,136.58 1,503,307,251.66
Non-current asset due within
one year
Other current assets
Total current assets 7,439,750,964.97 5,777,805,499.59
Non-current assets:
Granted loans and advances
76
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Finance asset available for
sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 32,720,591.78 35,150,428.02
Investment real estate 16,133,559.89 16,509,959.84
Fixed assets 1,214,079,717.44 1,243,889,950.81
Construction in progress 69,523,509.18 70,705,114.33
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 623,878,667.60 628,269,816.49
Expense on Research and
31,008,648.43 31,746,326.41
Development
Goodwill 5,529,842.09 5,529,842.09
Long-term expenses to be
apportioned
Deferred income tax asset 75,890,810.09 76,533,494.89
Other non-current asset
Total non-current asset 2,068,765,346.50 2,108,334,932.88
Total assets 9,508,516,311.47 7,886,140,432.47
Current liabilities:
Short-term loans 459,268,050.00 45,456,805.14
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable 1,358,793,426.78 1,268,157,043.71
Accounts payable 2,339,285,831.36 1,462,293,958.34
Accounts received in advance 387,915,609.50 459,974,402.43
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 76,205,784.37 137,325,501.89
Taxes payable 107,496,473.27 111,106,673.16
Interest payable
Dividend payable 1,520,261.27 1,551,602.30
Other accounts payable 1,073,340,052.52 826,111,040.95
77
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
8,709,083.76 7,777,304.72
within 1 year
Other current liabilities
Total current liabilities 5,812,534,572.83 4,319,754,332.64
Non-current liabilities:
Long-term loans 130,474,600.00 131,114,600.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 359,488,003.05 361,156,281.38
Deferred income tax liabilities
Other non-current liabilities 96,487,904.03 92,645,296.80
Total non-current liabilities 586,450,507.08 584,916,178.18
Total liabilities 6,398,985,079.91 4,904,670,510.82
Owner’s equity (or
shareholders’ equity):
Paid-up capital (or share
763,739,205.00 763,739,205.00
capital)
Capital public reserve 1,482,347,448.73 1,482,582,391.41
Less: Inventory shares
Reasonable reserve
Surplus public reserve 325,000,757.16 325,000,757.16
Provision of general risk
Retained profit 521,435,836.67 385,744,261.05
Balance difference of foreign
-1,454,078.19 -1,278,962.31
currency translation
Total owner’s equity
3,091,069,169.37 2,955,787,652.31
attributable to parent company
Minority interests 18,462,062.19 25,682,269.34
Total owner’s equity(or
3,109,531,231.56 2,981,469,921.65
shareholders’ equity)
Total liabilities and owner’s
9,508,516,311.47 7,886,140,432.47
equity(or shareholders’ equity)
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
78
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
2. Balance Sheet of parent company
Prepared by Hefei Meiling Co., Ltd. 2013-6-30 Unit: RMB
Item Note Balance at period-end Balance at period-begin
Current assets:
Monetary funds 1,710,526,818.81 1,235,992,818.90
Transaction finance asset
Notes receivable 1,908,605,563.46 1,498,979,952.77
Accounts receivable 982,508,527.69 958,731,705.08
Accounts paid in advance 236,298,923.04 295,676,384.52
Interest receivable
Dividend receivable
Other receivables 277,749,246.18 51,135,324.78
Inventories 542,812,734.25 555,767,921.46
Non-current asset due within
one year
Other current assets
Total current assets 5,658,501,813.43 4,596,284,107.51
Non-current assets:
Finance asset available for
sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 841,708,306.75 842,013,498.21
Investment real estate 12,990,625.65 13,227,570.00
Fixed assets 870,871,249.73 895,143,842.40
Construction in progress 70,993,103.38 78,373,941.23
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 475,131,263.97 480,873,122.36
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 67,509,743.67 69,870,668.72
Other non-current asset - -
Total non-current asset 2,339,204,293.15 2,379,502,642.92
Total assets 7,997,706,106.58 6,975,786,750.43
79
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Current liabilities:
Short-term loans 450,000,000.00 13,073,840.00
Transaction financial liabilities
Notes payable 982,923,012.58 1,055,969,152.25
Accounts payable 1,717,488,638.68 1,313,834,344.18
Accounts received in advance 236,079,462.50 199,639,453.81
Wage payable 57,169,256.38 101,332,386.23
Taxes payable 43,260,122.17 45,611,775.99
Interest payable
Dividend payable 1,303,652.76 1,303,652.76
Other accounts payable 710,596,943.21 544,916,287.47
Non-current liabilities due
6,725,733.12 5,793,954.08
within 1 year
Other current liabilities - -
Total current liabilities 4,205,546,821.40 3,281,474,846.77
Non-current liabilities:
Long-term loans 130,474,600.00 131,114,600.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 359,488,003.05 361,156,281.38
Deferred income tax liabilities
Other non-current liabilities 79,503,578.22 77,879,788.72
Total non-current liabilities 569,466,181.27 570,150,670.10
Total liabilities 4,775,013,002.67 3,851,625,516.87
Owner’s equity (or
shareholders’ equity):
Paid-up capital (or share
763,739,205.00 763,739,205.00
capital)
Capital public reserve 1,497,898,194.51 1,497,898,194.51
Less: Inventory shares
Reasonable reserve
Surplus public reserve 324,782,591.48 324,782,591.48
General risk reserve
Retained profit 636,273,112.92 537,741,242.57
Balance difference of foreign
currency translation
Total owner’s equity(or
3,222,693,103.91 3,124,161,233.56
shareholders’ equity)
Total liabilities and owner’s
7,997,706,106.58 6,975,786,750.43
equity(or shareholders’ equity)
80
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
3. Consolidated Profit Statement
Prepared by Hefei Meiling Co., Ltd. January- June 2013 Unit: RMB
Item Note Amount in this period Amount in last period
I. Total operating income 5,951,444,575.32 5,312,610,523.12
Including: Operating income 5,951,444,575.32 5,312,610,523.12
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 5,789,829,787.90 5,186,451,911.60
Including: Operating cost 4,526,354,103.23 4,043,977,198.26
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 58,543,334.84 43,172,959.76
Sales expenses 1,049,206,682.51 937,857,498.97
Administration expenses 169,954,161.54 158,911,541.76
Financial expenses -36,240,925.89 -34,586,978.46
Losses of devaluation of asset 22,012,431.67 37,119,691.31
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
751,289.68 260,963.91
listed with “-”)
Including: Investment income
on affiliated company and joint -593,240.24 -812,793.39
venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
162,366,077.10 126,419,575.43
listed with “-”)
Add: Non-operating income 9,017,138.67 4,579,649.44
Less: Non-operating expense 3,463,798.30 5,625,818.80
81
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Including: Disposal loss of
3,304,049.48 5,333,936.81
non-current asset
IV. Total Profit (Loss is listed
167,919,417.47 125,373,406.07
with “-”)
Less: Income tax expense 36,091,305.08 13,865,961.02
V. Net profit (Net loss is listed
131,828,112.39 111,507,445.05
with “-”)
Including: net profit realized
before consolidation by
mergered party
Net profit attributable to
135,691,575.62 110,855,042.20
owner’s of parent company
Minority shareholders’ gains
-3,863,463.23 652,402.85
and losses
VI. Earnings per share
i. Basic earnings per share 0.1777 0.1742
ii. Diluted earnings per share 0.1777 0.1742
VII. Other consolidated
-291,859.80 -696,806.42
income
VIII. Total comprehensive
131,536,252.59 110,810,638.63
income
Total consolidated income
attributable to owners of parent 135,516,459.74 110,436,958.35
company
Total consolidated income
attributable to minority -3,980,207.15 373,680.28
shareholders
The merger realized net profit RMB 0.00 before consolidation during enterprises consolidation under a same
control.
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
4. Profit Statement of parent company
Prepared by Hefei Meiling Co., Ltd. January- June 2013 Unit: RMB
Item Note Amount in this period Amount in last period
I. Operating income 3,829,721,899.14 3,621,039,142.64
Less: operating cost 3,221,426,513.11 3,070,016,853.33
Operating tax and extras 36,221,458.33 31,914,753.63
Sales expenses 407,549,284.71 361,043,008.41
Administration expenses 78,925,071.15 81,986,923.62
Financial expenses -31,287,748.99 -33,719,408.35
Losses of devaluation of asset 2,555,031.25 -24,334,130.41
Add: Changing income of fair
value(Loss is listed with “-”)
82
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Investment income (Loss is
1,285,161.84 1,249,554.97
listed with “-”)
Including: Investment income
on affiliated company and joint 211,404.54 175,797.67
venture
II. Operating profit (Loss is
115,617,451.42 135,380,697.38
listed with “-”)
Add: Non-operating income 5,776,504.46 2,906,535.04
Less: Non-operating expense 2,727,898.46 5,321,936.63
Including: Disposal loss of
2,727,898.46 5,321,936.63
non-current asset
III. Total Profit (Loss is listed
118,666,057.42 132,965,295.79
with “-”)
Less: Income tax expense 20,134,187.07 22,094,357.32
IV. Net profit (Net loss is listed
98,531,870.35 110,870,938.47
with “-”)
V. Earnings per share
i. Basic earnings per share 0.1290 0.1742
ii. Diluted earnings per share 0.1290 0.1742
VI. Other consolidated income
VII. Total comprehensive
98,531,870.35 110,870,938.47
income
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
5. Consolidated Cash Flow Statement
Prepared by Hefei Meiling Co., Ltd. January- June 2013 Unit: RMB
Item Amount in this period Amount in last period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 3,331,097,400.51 2,611,057,053.96
services
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured
savings and investment
83
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returned business
capital
Write-back of tax received 48,652,719.99 44,962,884.98
Other cash received concerning
71,908,913.97 12,793,275.47
operating activities
Subtotal of cash inflow arising
3,451,659,034.47 2,668,813,214.41
from operating activities
Cash paid for purchasing
commodities and receiving labor 2,507,755,591.42 2,064,859,020.49
service
Net increase of customer loans
and advances
Net increase of deposits in
central bank and interbank
Cash paid for original insurance
contract compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and workers 393,119,416.07 324,087,053.68
Taxes paid 313,635,084.47 268,142,290.34
Other cash paid concerning
380,447,500.28 272,269,140.43
operating activities
Subtotal of cash outflow arising
3,594,957,592.24 2,929,357,504.94
from operating activities
Net cash flows arising from
-143,298,557.77 -260,544,290.53
operating activities
II. Cash flows arising from
investing activities:
Cash received from recovering
720,000.00 -
investment
Cash received from investment
1,685,337.19 1,073,757.30
income
Net cash received from disposal
of fixed, intangible and other 593,337.20 762,052.14
long-term assets
Net cash received from
disposal of subsidiaries and other
units
84
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Other cash received concerning
32,111,533.12 6,171,203.13
investing activities
Subtotal of cash inflow from
35,110,207.51 8,007,012.57
investing activities
Cash paid for purchasing fixed,
intangible and other long-term 44,629,746.28 81,482,550.21
assets
Cash paid for investment 234,942.68
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from
44,864,688.96 81,482,550.21
investing activities
Net cash flows arising from
-9,754,481.45 -73,475,537.64
investing activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 514,641,824.68 132,587,439.80
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
514,641,824.68 132,587,439.80
financing activities
Cash paid for settling debts 108,788,409.39 34,214,668.71
Cash paid for dividend and profit
3,004,551.91 4,147,746.45
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from
111,792,961.30 38,362,415.16
financing activities
Net cash flows arising from
402,848,863.38 94,225,024.64
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in 5,346,669.62 4,965,199.03
exchange rate
V. Net increase of cash and cash
255,142,493.78 -234,829,604.50
equivalents
85
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Add: Balance of cash and cash
1,701,307,578.13 1,401,674,679.41
equivalents at the period -begin
VI. Balance of cash and cash
1,956,450,071.91 1,166,845,074.91
equivalents at the period -end
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
6. Cash Flow Statement of parent company
Prepared by Hefei Meiling Co., Ltd. January- June 2013 Unit: RMB
Item Amount in this period Amount in last period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 2,291,377,546.05 2,017,909,658.46
services
Write-back of tax received 10,868,319.19 13,354,107.09
Other cash received concerning
64,895,929.24 8,000,726.82
operating activities
Subtotal of cash inflow arising
2,367,141,794.48 2,039,264,492.37
from operating activities
Cash paid for purchasing
commodities and receiving labor 1,960,882,711.48 1,925,474,277.93
service
Cash paid to/for staff and workers 178,018,179.09 143,015,542.21
Taxes paid 139,676,410.23 190,639,645.56
Other cash paid concerning
87,972,200.92 94,250,858.05
operating activities
Subtotal of cash outflow arising
2,366,549,501.72 2,353,380,323.75
from operating activities
Net cash flows arising from
592,292.76 -314,115,831.38
operating activities
II. Cash flows arising from
investing activities:
Cash received from recovering
investment
Cash received from investment
1,590,353.30 1,073,757.30
income
Net cash received from disposal
of fixed, intangible and other 545,655.60 688,667.35
long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received concerning
26,949,532.49 4,354,922.44
investing activities
Subtotal of cash inflow from
29,085,541.39 6,117,347.09
investing activities
86
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Cash paid for purchasing fixed,
intangible and other long-term 34,133,918.81 45,474,500.69
assets
Cash paid for investment
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from
34,133,918.81 45,474,500.69
investing activities
Net cash flows arising from
-5,048,377.42 -39,357,153.60
investing activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Cash received from loans 452,929,528.78 108,457,477.17
Cash received from issuance of
bonds
Other cash received concerning
49,633,900.06 -
financing activities
Subtotal of cash inflow from
502,563,428.84 108,457,477.17
financing activities
Cash paid for settling debts 24,205,440.00 640,000.00
Cash paid for dividend and profit
2,752,500.00 3,398,002.70
distributing or interest paying
Other cash paid concerning
514,570.91 10,000,000.00
financing activities
Subtotal of cash outflow from
27,472,510.91 14,038,002.70
financing activities
Net cash flows arising from
475,090,917.93 94,419,474.47
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in 3,899,166.64 3,496,863.96
exchange rate
V. Net increase of cash and cash
474,533,999.91 -255,556,646.55
equivalents
Add: Balance of cash and cash
1,235,992,818.90 1,045,235,918.61
equivalents at the period -begin
VI. Balance of cash and cash
1,710,526,818.81 789,679,272.06
equivalents at the period -end
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
87
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
7. Consolidated Statement on Changes of Owners' Equity
Amount in this period
Unit: RMB
Amount in this period
Owners' equity attributable to the parent company
Item Paid-up Less: Reason General Minority’s Total owners’
Surplus equity equity
capital (Share Capital reserves Treasury able risk Retained profit Others
reserves
capital) Stock reserve provision
I. Balance at the end of last
763,739,205.00 1,482,582,391.41 325,000,757.16 385,744,261.05 -1,278,962.31 25,682,269.34 2,981,469,921.65
year
Add: Changes of
accounting policy
Error correction of the last
period
Others
II. Balance at the
763,739,205.00 1,482,582,391.41 325,000,757.16 385,744,261.05 -1,278,962.31 25,682,269.34 2,981,469,921.65
beginning of this year
III. Increase/ Decrease in
this year (Decrease is listed -234,942.68 135,691,575.62 -175,115.88 -7,220,207.15 128,061,309.91
with'"-")
(i) Net profit 135,691,575.62 -3,863,463.23 131,828,112.39
(ii) Other consolidated
-175,115.88 -116,743.92 -291,859.80
income
Subtotal of (i)and (ii) 135,691,575.62 -3,980,207.15 131,711,368.47
(III) Owners' devoted and
-234,942.68 -3,240,000.00 -3,474,942.68
decreased capital
1. Owners' devoted capital -3,240,000.00 -3,240,000.00
2. Amount calculated into
owners' equity paid in
shares
3. Others -234,942.68 -234,942.68
88
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
(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
surplus reserve
4. Others
(VI) Reasonable reserve
1. Withdrawal in this
period
2. Usage in this period
(VII) Other
IV. Balance at the end of
763,739,205.00 1,482,347,448.73 325,000,757.16 - 521,435,836.67 -1,454,078.19 18,462,062.19 3,109,531,231.56
the report period
Amount in last period
Unit: RMB
Amount in last period
Owners' equity attributable to the parent company
Item Minority’s Total owners’
Paid-up Less: Reason Surplus General Retained profit equity equity
Capital reserves Others
capital (Share Treasury able reserves risk
89
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
capital) Stock reserve provision
I. Balance at the end of last
636,449,338.00 1,609,999,547.27 299,625,924.94 250,743,672.24 -501,107.01 57,918,266.85 2,854,235,642.29
year
Add: retroactive
adjustment arising from
enterprise consolidation
under the same control
Add: Changes of
accounting policy
Error correction of the last
period
Others
II. Balance at the
636,449,338.00 1,609,999,547.27 299,625,924.94 250,743,672.24 -501,107.01 57,918,266.85 2,854,235,642.29
beginning of this year
III. Increase/ Decrease in
this year (Decrease is listed 127,289,867.00 -127,417,155.86 25,374,832.22 135,000,588.81 -777,855.30 -32,235,997.51 127,234,279.36
with'"-")
(i) Net profit 192,197,887.93 -31,020,487.31 161,177,400.62
(ii) Other consolidated
-777,855.30 -518,570.20 -1,296,425.50
income
Subtotal of (i)and (ii) 192,197,887.93 -777,855.30 -31,539,057.51 159,880,975.12
(III) Owners' devoted and
-127,288.86 -127,288.86
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in
shares
3. Others -127,288.86 -127,288.86
(IV)Profit distribution 25,374,832.22 -57,197,299.12 -696,940.00 -32,519,406.90
1. Withdrawal of surplus
25,374,832.22 -25,374,832.22 - -
reserves
2. Withdrawal of general
risk provisions
90
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
3. Distribution for owners
-31,822,466.90 -696,940.00 -32,519,406.90
(shareholders)
4. Others
(V) Carrying forward
127,289,867.00 -127,289,867.00
internal owners' equity
1. Capital reserves
conversed to capital (share 127,289,867.00 -127,289,867.00
capital)
2. Surplus reserves
conversed to capital (share
capital)
3. Remedying loss with
surplus reserve
4. Others
(VI) Reasonable reserve
1.Withdrawal in this period
2.Usage in this period
(VII) Other
IV. Balance at the end of
763,739,205.00 1,482,582,391.41 325,000,757.16 385,744,261.05 -1,278,962.31 25,682,269.34 2,981,469,921.65
the report period
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
8. Statement on Changes of Owners' Equity of Parent Company
Amount in this period
Unit: RMB
Amount in this period
Item Paid-up capital Less: Treasury Reasonable Surplus General Total owners’
Capital reserves Retained profit
(Share capital) Stock reserve reserves risk reserve equity
I. Balance at the end of last year 763,739,205.00 1,497,898,194.51 324,782,591.48 - 537,741,242.57 3,124,161,233.56
91
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Add: Changes of accounting
policy
Error correction of the last period
Others
II. Balance at the beginning of
763,739,205.00 1,497,898,194.51 324,782,591.48 - 537,741,242.57 3,124,161,233.56
this year
III. Increase/ Decrease in this
98,531,870.35 98,531,870.35
year (Decrease is listed with'"-")
(i) Net profit 98,531,870.35 98,531,870.35
(ii) Other consolidated income
Subtotal of (i)and (ii) 98,531,870.35 98,531,870.35
(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
reserve
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 surplus
reserves
92
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
4. Others
(VI) Reasonable reserve
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the
763,739,205.00 1,497,898,194.51 324,782,591.48 636,273,112.92 3,222,693,103.91
report period
Amount in last year
Unit: RMB
Amount in last year
Item Paid-up capital Less: Treasury Reasonable Surplus General Total owners’
Capital reserves Retained profit
(Share capital) Stock reserve reserves risk reserve equity
I. Balance at the end of last
636,449,338.00 1,625,315,350.37 299,407,759.26 341,190,219.48 2,902,362,667.11
year
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning
636,449,338.00 1,625,315,350.37 299,407,759.26 341,190,219.48 2,902,362,667.11
of this year
III. Increase/ Decrease in
this year (Decrease is listed 127,289,867.00 -127,417,155.86 25,374,832.22 196,551,023.09 221,798,566.45
with'"-")
(i) Net profit 253,748,322.21 253,748,322.21
(ii) Other consolidated
income
Subtotal of (i)and (ii) 253,748,322.21 253,748,322.21
(III) Owners' devoted and
-127,288.86 -127,288.86
decreased capital
1. Owners' devoted capital 106,074,889.00
93
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
2. Amount calculated into
owners' equity paid in shares
3. Others -127,288.86 -127,288.86
(IV) Profit distribution 25,374,832.22 -57,197,299.12 -31,822,466.90
1. Withdrawal of surplus
25,374,832.22 -25,374,832.22 -
reserves
3. Withdrawal of general
risk reserve
3. Distribution for owners
-31,822,466.90 -31,822,466.90
(shareholders)
4. Others
(V) Carrying forward
127,289,867.00 -127,289,867.00
internal owners' equity
1. Capital reserves
conversed to capital (share 127,289,867.00 -127,289,867.00
capital)
2. Surplus reserves
conversed to capital (share
capital)
3. Remedying loss with
surplus reserves
4. Others
(VI) Reasonable reserve
3. Withdrawal in this
period
4. Usage in this period
(VII) Other
IV. Balance at the end of the
763,739,205.00 1,497,898,194.51 324,782,591.48 537,741,242.57 3,124,161,233.56
report period
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
94
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
Hefei Meiling Co., Ltd.
Annotations of Financial Statement for Semi-Annual of 2013
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
I. Company profile
(I) Historical Origin
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 re-examination 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.
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,
Hefei Meiling Group Holdings Company Limited (hereinafter abbreviated as Meiling Group)
transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Company to
Sichuan Changhong Electronic Group Co., Ltd (hereinafter abbreviated as Changhong Group),
other 45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter abbreviated as
Sichuan Changhong). On Aug 15, 2007, the above ownerships were transferred and Cleaning
Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of
Anhui Provincial Government replied with Document [WGZCQH(2007) No.309] Reply on
“Related Matters of Share Merger Reform of Meiling Co., Ltd.”, agreed the Company’s
ownership split reform plan. The Company made consideration that non-tradable share holders
deliver 1.5 shares to A share holders per 10 shares, and original Meiling Group made
prepayment 3,360,329 shares for some non-tradable share holders as consideration for split
reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares
paid for other non-tradable shareholders by original Meiling Group in share reform) held by
original Meiling Group, the “Notice of Freely Transfer of Meiling Electrics Equity held by
Meiling Group”[HGZCQ(2008) No. 59] issued from State-owned Assets Supervision &
Administration Commission of Hefei Municipal, agrees to transfer the above said shares to
Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August 2008, the
“Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned
shareholders”[GZCQ(2007) No. 750] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group Company signed Agreement on Equity Transfer
of Hefei Meiling Co., Ltd with Sichuan Changhong, in which 32,078,846 tradable A-shares
with conditional subscription of the Company (accounting for 7.76% in total shares) held by
Changhong Group Company. On 23 December 2008, “Reply of Transfer Freely of Part of the
Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders”[GZCQ(2008) No. 1412]
issued by SASAC agrees the above said share transferring.
On 24 December 2010, being deliberated and approved in 32nd Meeting of 6th Session of
the Board and 2nd Extraordinary Shareholders’ General Meeting of 2010 as well as approval of
95
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
document [ZJXP(2010) No. 1715] from CSRC, totally 116,731,500 RMB ordinary shares (A
stock) were offering privately to target investors with issue price of RMB 10.28/share. Capital
collecting amounting to RMB 1,199,999,820 after issuing expenses RMB 22,045,500 deducted,
net capital collected amounting to RMB 1,177,954,320, and paid-in capital(share capital)
increased RMB 116,731,500 with capital reserve(share premium) RMB 1,061,106,088.5
increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shining CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010
profit distribution plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two
shares for every ten shares held by shareholders to all shareholders, based on the total share
capital of 530,374,449 shares as of 31 December 2010. The total share capital of the Company
upon profit distribution increased to 636,449,338 shares. The capital increase was verified by
Anhui Huashen Zhengda Accounting Firm with the verification report
WHSZDKYZ(2011)No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011
profit distribution and capitalization of capital reserve plan, namely to distribute cash dividends
of RMB0.5 (tax included) plus two shares for every ten shares to all shareholders capitalized
from capital reserve, based on the total share capital of 636,449,338 shares as of 31 December
2011. The total share capital of the Company upon implementation of capitalization of capital
reserve increased to 763,739,205 shares from 636,449,338 shares, and was verified by Anhui
Anlian Xinda Accounting Firm with the verification report WALXDYZ(2012)No.093.
Ended as 30 June 2013, total share capital of the Company amounting to
763,739,205shares with ordinary shares in full. Among which, 600,875,205 shares of A-share
accounting 78.68% in total shares while B-share with 162,864,000 shares accounting 21.32% in
total shares. Detail share capital as:
Type of stock Quantity Proportion
I. Restricted shares 65,330,068 8.55%
1. State-owned shares
2. State-owned legal person’s shares 56,309,236 7.37%
3. Other domestic shares 9,020,832 1.18%
Including: Domestic non-state-owned legal person’s
shares 8,896,647 1.16%
Domestic natural person’s shares 124,185 0.02%
4. Foreign shares
Including: Foreign legal person’s shares
Foreign natural person’s shares
5. Senior executives’ shares
II. Unrestricted shares 698,409,137 91.45%
1. RMB Ordinary shares 535,545,137 70.13%
2. Domestically listed foreign shares 162,864,000 21.32%
3. Overseas listed foreign shares
4. Others
96
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
III. Total shares 763,739,205 100.00%
(II) Business nature and its business activities
The Company belongs to the manufacture of light industry, and engaged in the production
and sale of refrigerator, 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: Liu Tibin; register
capital(paid-in capital): RMB 763,739,205; type of company: limited liability company(joint
venture and listed of Taiwan, Hong Kong and Macau) 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 materials,
machinery equipment, instrument and technology; department sales and transportation
(III) Name of the parent Company and final actual controller of the Group
Ended 30 June 2013, Sichuan Changhong and its accord actionist totally held 24.88%
shares of the Company and is the first largest shareholder; Changhong Group held 23.19%
shares of Sichuan Changhong accounting 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 6.26% shares of the Company accounting and is the
second largest shareholder of the Company.
II. Significant Accounting Policy, Accounting Estimation and Preparation Method
for Consolidated Financial Statement
(I) 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”.
(II) 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.
(III) Accounting period
The accounting period of the Company is the calendar date from 1 January to 31
December.
(IV) Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
(V) 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.
(VI) 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
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Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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.
(VII) 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 Accounting
Standards for Business Enterprises 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.
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.
(VIII) 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.
(IX) Foreign currency business and foreign currency financial statement conversion
1. Foreign currency business
98
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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 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.
(X) Financial assets and financial liabilities
1. Financial assets
(1) Classification of 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.
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.
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.
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.
Financial assets available-for-sale including the non-derivative financial assets
available-for-sale and the financial assets which have not been grouped as others at the initial
confirmation
(2) Recognition and measurement for financial assts
Financial assets, while become party of the contract of financial instrument in the
Company, recognized in balance sheet by fair value. For the financial assets which are
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Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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.
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.
Except impairment losses and exchange gains/loss from financial assets with foreign
currency, variation of the fair value for financial assets available for sale should reckon into
shareholders’ equity. The variation of fair value accumulative reckon into equity previously
should transfer into current gains/losses while recognition of this financial asset terminated. For
the interest during period of holding for instrument investment of liability available for sale
based on real interest rate, and cash dividend related with instrument investment of equity
available for sale that announced by invested enterprises should reckon into current gains/losses
as investment incomes.
(3) Impairment of financial assets
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.
When the financial assets calculated by amortized cost decrease in value, count and draw
the provision for impairment according to the balance between present value and book value of
predicted future cash flows (Excluding future credit losses that haven’t occurred yet.). If there
is any objective evidence to indicate that the financial assets has recovered and is objectively
connected with matters occurred after confirming the losses, the formerly confirmed
impairment losses will be reversed and reckoned in current profits and losses.
When the fair value of financial assets available for sale goes down substantially or non-
transiently, the accumulating losses previously and directly reckoned in shareholder's equity
and formed due to shrinkage of fair value will be transferred and reckoned in impairment losses.
As for the debt instrument investment available for sale with confirmed impairment losses, if
its fair value rises after and it is objectively connected with matters occurred after confirming
the primary impairment losses, the formerly confirmed impairment losses will be reversed and
reckoned in current profits and losses. And the debt instrument investment available for sale
with confirmed impairment losses shall be directly reckoned in stockholder's equity if its fair
value rises after.
(4) Transfer of financial assets
100
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
The financial assets meet one of following requirements will be terminated recognition: ①
The contract rights of collecting cash flow of the financial assets is terminated; ②The financial
assets has already been transferred, and the Company has transferred almost all risks and
remunerations of financial assets ownership to the transferee; ③The financial assets has been
transferred, even though the Company has neither transferred nor kept almost all risks and
remunerations of financial assets ownership, the Company has given up controlling the
financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of
financial assets ownership, nor given up controlling the financial assets, then confirm the
relevant financial assets according to how it continues to involve into the transferred financial
assets and confirm the relevant liabilities accordingly. The degree of keeping involving into the
transferred financial assets refers to the risk level with which the fluctuation of this financial
asset value makes the enterprise face.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the
balance between the book value of the transferred financial assets and the sum of consideration
received from transfer and fluctuation accumulated amount of fair value formerly reckoned in
other consolidated income in the current profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the
integral book value of the transferred financial assets between the derecognized parts and the
parts not yet derecognized according to each relative fair value, and reckon the balance
between the sum of consideration received from transfer and fluctuation accumulated amount
of fair value formerly reckoned in other consolidated income that should be apportioned to the
derecognized parts and the apportioned aforementioned carrying amounts in the current profits
and losses.
2. Financial liability
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
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Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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.
(XI) Bad debt provision for accounts receivable
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 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.
Allowance method is adopted for the bad debt losses which are likely to happen. And
conducting impairment test independently or by combination at period-end, withdrawn bad
debt provision 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 Group according to regulated procedures to offset withdrawn bad
debt provision.
1. Account receivable with single significant amount and withdrawal single item bad debt
provision:
Beginning from test of single amount with 5% in total , if totally amount takes over 80%
Determine basis or amount
of the total for over 5% occupied, than 5% of single amount in total amounts recognized
standards for single significant
as single significant amount; if totally amount takes less than 80% of the total for over
amount
5% occupied, than lower recognition standards till qualified 80% in total
withdrawal method for account
with single significant amount and Withdrawal bad debt provision according to difference between the current value of
withdrawal single item bad debt future cash flow and book values
provision
2. Account receivable withdrawal bad debt provision by combination:
Basis for combination recognized
Combination 1 Account receivable except combination 2
Employee reserve fund, foreign investment amount, contact with related party, export tax refund
Combination 2
receivable, account receivable with L/C or insurance, government subsidy etc.
Methods on withdrawal of bad debt provision based on combination
Combination 1 Age analysis
Combination 2 Balance proportion
Combination 1: withdrawal proportion of bad debt provision for account receivable based on
age analysis:
Account receivables Accrual proportion Other account receivable Accrual
Account age
(%) proportion (%)
Within 1year(1year included ) 5 5
1－2years 15 15
2－3 years 35 35
102
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
3－4 years 55 55
4－5 years 85 85
Over 5 years 100 100
Combination 2: withdrawal proportion of bad debt provision for account receivable based on
balance proportion:
Account receivables Accrual proportion Other account receivable Accrual
Combination
(%) proportion (%)
Combination 2 0.00 0.00
Account receivables in combination 2 have the risk in control and withdrawal no bad debt
provision.
3. Account receivable with single minor amount but withdrawal single item bad debt provision:
Reasons for withdrawal single item
Account with minor amount but have significant inflow risk on predicted future cash flow
bad debt provision
Impairment test on the current value of predicted future cash flow, bad debt provision
withdrawal method for bad debt withdrawal. If depreciation occurred, independently withdrawal bad debt provision without
provision combination basis; if no depreciation happened, impairment test base on the combination
nature that included in the combination.
(XII) Inventories
Inventories of the Company principally include raw materials, stock goods; work in
process, self-made semi-finished product, materials consigned to precede, low-value
consumption goods, goods in transit, goods in process and mould 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. For those individual stock, suffering damage, totally or partly out of fashion or has
lower sales price than cost, predicted recoverable parts in cost, and withdrawal provision of
inventory depreciation single. For those raw materials, stock commodities and goods in transit,
withdrawal provision of inventory depreciation by follow methods:
1. Determined the net realizable value of raw materials on the higher amount between the
final prices of estimated sale-price deducted cost (about to happen till products finished),
estimated sales expense and relevant taxes, and the fair value of external disposal.
2. Withdrawal obsolete provision for commodity stocks and goods in transit by the follow
proportion:
(1) Refrigerator, freezer and washing machine
Withdrawal proportion for obsolete
Grade Stock duration
provision
103
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
Withdrawal proportion for obsolete
Grade Stock duration
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%
Unqualified 60%
Disposal 65%
Sample machine 30%
Special user type that exceed the order quantity 50%
(2) Air-conditioner
Withdrawal proportion for obsolete
Location level
provision
Repair 50%
Awaiting repair 70%
Store return 70%
De-stocking 70%
Overstock 100%
The Company re-checks 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 comparison with the book value of
commodity stocks and goods in transit, determined whether adjusted the proportion or not.
3. The present products produced according to the market requirement usually, and
without significant obsolete evidence in short-term, so withdrawal 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 withdrawal of
obsolete provision at period-end
(XIII) 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
104
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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 each 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 other 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 through debt reorganization and
non-monetary 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 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
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Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
believed to enjoy proportion of net gains and losses of invested unit, gains 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
(XIV) 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:
Predicted rate of salvage Depreciation rate per
Type Depreciation term (year)
value (%) annum (%)
Houses and buildings 30-40 years 4%-5% 2.375%-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.
106
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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.
(XV) 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 is 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 directly 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
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 salvage Depreciation rate per
No. Type Depreciation term
value annum
1 Houses and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Mechanical equipment 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipments 8-12 years 4%-5% 7.92%-12.00%
The Company makes re-examination on predicted service life, predicted rate of salvage
value and depreciation method at each year-end. Any change will be treated as accounting
107
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
estimation change.
(XVI)Construction in process
Construction in process is measured with effective cost. Self-operated constructions
projects are measured with direct materials, direct salaries and direct construction 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
arising 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.
(XVII) 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 expense 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 occurrence 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
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.
(XVIII) 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
108
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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 service 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 uncertain 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.
(XIX) 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 occurrence; expenditure arising during development is confirmed as intangible assets
when satisfying the following conditions:
1. Completions of the intangible assets makes 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;
5. Expenditure attributable to development of the intangible assets could be reliable
measured.
Expenditure arising during development not satisfying the above conditions shall be
recorded in current gains and losses upon occurrence. 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.
(XX) 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 uncertain 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.
109
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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 advance;
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
(XXI) Goodwill
Goodwill represents 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.
(XXII) Long-term deferred expenses
Long-term deferred expenses of the Company refer 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 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.
(XXIII) 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.
110
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
The early retirement policy for staff and workers of the Company is the compensation for
encouraging staff and workers to accept the reduction voluntarily. The employees make
applications voluntarily, the two parties sign the compensation agreement after approved by the
Company and calculate the compensation amount according to the compensation standard
passed by the staff representative conference, and the Company confirms it as dismiss welfare
and reckons it in current profits and losses. As the Company promises to adjust the treatment
for early retiring staff and workers with the increase of social basic cost of living allowances,
the discount elements will not be considered for calculating the dismiss welfare.
(XXIV) Accrual 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.
(XXV) Principle of recognition of revenue
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor
providing income 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 Company confirms the realization of service income when the gross income and
total cost of labor service cab be unfailingly calculated, the economic benefits related to labor
service are likely to flow into the Group, and the progress of labor service can be confirmed
reliably. On balance sheet date, with regard to those with results provided for labor service
transactions can be estimated reliably, confirm the relevant service income according to
percentage of completion method and determine the percentage-of-completion method by the
proportion of the occurred cost in the estimated total cost; as for those with results provided for
labor service transactions can’t be estimated reliably and with occurred labor cost predicted to
be able to get compensation, confirm to provide service income according to labor cost
amount occurred and capable of getting compensation, and carry over the occurred labor costs;
for those with results provided for labor service transactions can’t be estimated reliably and
with occurred labor cost predicted to be not able to get compensation, reckon the occurred labor
cost in the current profits and losses, but not confirm to provide service income.
(3) The economy benefit of use-right of transfer assets probably wills inflow to the
Company, if the income can be measure accountability, than use-right income of transfer assets
recognized.
(XXVI) Government subsidies
Government subsidy at the Company be able to meet its attached conditions, and can be
confirmed when received. Government grants(such as subsidy for energy-saving and
civil-beneficial of air-conditioner) for monetary assets, in accordance with the measurement of
111
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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.
(XXVII) 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.
(XXVIII) 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
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.
(XXIX) 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.
112
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
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.
(XXX). Segment information
Business segment was the major reporting form of the Company, which divided into 4
parts: air-conditioner, refrigerator 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.
(XXXI)Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when
preparing financial statement which will affect the application of accounting policy and
amounts of assets, liabilities, income and expense. The actual condition may differ from the
estimation. Constant evaluation is conducted by the management in respect of the key
assumption involved in the estimation and judgment of uncertainties. Effect resulting from
change of accounting estimation is recognized in the period the change occurs and future
periods.
The following accounting estimation and key assumption may result in material
adjustment to the book value of assets and liabilities in future period.
1. Inventory impairment provision
The Company provides impairment provision according to the type of finished products
and goods delivered under fixed proportion. If the actual selling price or expense differs from
the previous estimation, the management will make corresponding adjustment to the proportion.
The estimation results based on existing experiences may differ from the latter actual results,
which may result in adjustment to the book value of inventories in the balance sheet and affect
over the gains and losses of the period when the estimation changes.
2. Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and
equipments which have impairment indication and long-term assets such as goodwill as at the
balance sheet date. The recoverable amount of relevant assets and assets group shall be the
present value of the projected future cash flow which shall be calculated with accounting
estimation.
If the management amends the gross profit margin and discount rate adopted in calculation
of future cash flow of assets and assets group and the amended gross profit margin is lower
than the currently adopted one or the amended discount rate is higher than the currently
adopted one, the Company needs to increase provision of impairment provision. If the actual
gross profit margin is higher (or the discount rate is lower) than the estimation of management,
the Company can not transfer back the long term assets impairment provision provided already.
3. Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and
applicable tax rate for each future year. Realization of deferred income tax assets depends on
whether a company is able to obtain sufficient taxable income in future. Change of future tax
rate and switch back of temporary difference could affect the balance of income tax expense
113
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
(gains) and deferred income tax. Change of the aforesaid estimation may result in material
adjustment to deferred income tax.
4. Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life
and residual value rate of fixed assets and intangible assets. The projected usable life and
residual value rate are determined by the management based on the historical experiences of
similar assets by reference to the estimation generally used by the same industry with
consideration on projected technical upgrade. If material change occurs to previous estimation,
the Company shall accordingly adjust the depreciation expenses and amortization expenses for
future period.
5. Accrual liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through
go-to-countryside promotion activity for free for ten years. As to the maintenance expenses that
may be increased arising from such commitment, the Company has provided projected
liabilities.
Taking into account the various uncertainties during the ten years, the Company considers
no discount factor of such projected liabilities. In stead, the Company reviews the parameters
(probility, proportion, maintenance expense per single set) based on the actual occurrence of
maintenance expenses as of each balance sheet date. If obvious change is found, the Company
will adjust the projected liabilities according to the latest parameters so as to reflect the best
estimation.
III. Changes of accounting policies and accounting estimates and correction of
previous errors
(I) Changes of accounting policies and effects: Nil
(II)Contents and reasons of changes of accounting estimates: Nil
(III) Correction of previous errors and effect: Nil
IV. Taxations
(I) 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 surcharge Turnover tax 2%
Corporate income tax Taxable income 15% or 25%
Original Book value of house property×(1-30%)or
House Property Tax 1.2% or 12%
annual rent income
Land use tax Actual land area used RMB 2.5/M2 to RMB 7 /M2
(II) Preferential tax and approval documents
1. Tax preference of enterprise income tax
The Company and its subsidiary Zhongke Meiling Cryogenics Technology Limited
114
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 30 June 2013
(Unless other wise specified, RMB for record in the Statement)
Company were recognized as second Hi-Tech Enterprise for year of 2008 in Anhui Province
with term of three years. Therefore, the Company and its subsidiary Zhongke Meiling
Cryogenics Technology Limited Company enjoys 15% rate for the income tax for State
Hi-Tech Enterprise. On 26 September 2011, being recognized by “Name Lists of First Hi-Tech
Enterprise for year of 2011 in Anhui Province”[WGQR(2011) No. 10] from Anhui Science &
Technology Department, the Company and its subsidiary Zhongke Meiling Cryogenics
Technology Limited Company continuous to enjoy 15% rate for the income tax for State
Hi-Tech Enterprise for three years term.
Subsidiary Zhongshan Changhong Appliance Co., Ltd. was recognized as First Hi-Tech
Enterprise for year of 2008 in Guangdong Province with 15% rate for the income tax for State
Hi-Tech Enterprise enjoys for term of three years. On 13 October 2011, being recognized by
“Name Lists of Second Hi-Tech Enterprise for year of 2011 in Guangdong
Province”[YKHGZi(2011) No.1437] from Guangdong Science & Technology Department,
Zhongshan Changhong Appliance Co., Ltd. continuous to enjoy 15% rate for the income tax for
State Hi-Tech Enterprise for three years term.
Subsidiary Sichuan Changhong Air Conditioner Co., Ltd. was granted the “Certificate of
High-tech Enterprise” (certificate No.: GR201051000154) with a maturity of three years on
28 May 2012. Being approved and file by First Branch of Local Tax Bureau of Mianyang City,
Sichuan Changhong Air Conditioner Co., Ltd. was subject to enterprise income tax at a rate of
15%.
115
Annotations to Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2011 to 31 December 2011
(Unless otherwise specified. RMB for record in the statement)
V. Business combination and consolidated financial statements
(I) Subsidiary
Amount
actually Balance of
State Amount in
Business Registered invested at other items Voting
Holding ments minority interest
Register nature capital (10 period-end materially right Minority
Name Type proport combi used for writing Note
place thousand forming net proport interest
(10 ion (%) ned or down minority
Yuan) investment to ion (%)
thousand not gain and loss
subsidiary
Yuan)
1. Subsidiaries established through direct investment
(1) Sub- subsidiary
Zhongke Meiling Cryogenic Technology Limited Manufacturing
Hefei 6,000.00 4,200.00 70.00 70.00 Yes 23,760,394.44
Co., Ltd. (1) Company and sales
Limited Jingde Manufacturing
Jiangxi Meiling Refrigeration Co., Ltd.(2) 4,000.00 4,500.00 90.00 100.00 Yes
Company Town and sales
Mianyang Meiling Refrigeration Co., Limited Mianyan Manufacturing
5,000.00 9,500.00 90.00 100.00 Yes
Ltd.(3) Company g and sales
Hefei Meiling Appliance Marketing Co., Limited
Hefei Sales 5,500.00 5,490.00 99.82 100.00 Yes
Ltd.(4) Company
Limited Jingde Manufacturing
Jiangxi Meiling Appliance Co., Ld.(5) 5,000.00 7,900.00 98.75 100.00 Yes
Company Town and sales
(2) 3rd Sub-Subsidiary
Changhong Ruba Trading Company Limited
Pakistan Sales $300.00 $180.00 60.00 60.00 Yes 4,816,325.15 1,845,903.27
(Private) Limited(6) Company
Xinxiang Meiling Appliance Marketing Limited
Xinxiang Sales 350.00 206.50 59.00 59.00 Yes 104,926.83 1,330,073.17
Co., Ltd. (7) Company
116
Annotations to Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2011 to 31 December 2011
(Unless otherwise specified. RMB for record in the statement)
Amount
actually Balance of
State Amount in
Business Registered invested at other items Voting
Holding ments minority interest
Register nature capital (10 period-end materially right Minority
Name Type proport combi used for writing Note
place thousand forming net proport interest
(10 ion (%) ned or down minority
Yuan) investment to ion (%)
thousand not gain and loss
subsidiary
Yuan)
Luohe Meiling Appliance Marketing Co., Limited
Luohe Sales 500.00 343.49 64.00 64.00 Yes 1,821,747.91 -
Ltd.(8) Company
Wuhu Meiling Appliance Marketing Co., Limited
Wuhu Sales 600.00 216.00 36.00 36.00 Yes -265,564.21 4,105,564.21
Ltd.(9) Company
Changchun Meiling Appliance Marketing Limited Changch
Sales 300.00 291.00 97.00 97.00 Yes -153,242.30 243,242.30
Co., Ltd.(10) Company un
Bengbu Meiling Appliance Marketing Co., Limited
Bengbu Sales 300.00 255.00 85.00 85.00 Yes 351,135.53 98,864.47
Ltd.(11) Company
Hengyang Meiling Appliance Marketing Limited Hengyan
Sales 300.00 123.00 41.00 41.00 Yes -1,328,913.56 3,098,913.56
Co., Ltd.(12) Company g
Nanchang Meiling Appliance Marketing Limited Nanchan
Sales 300.00 108.00 36.00 36.00 Yes -5,733,764.78 7,653,764.78
Co., Ltd.(13) Company g
Liu’an Meiling Appliance Marketing Co., Limited
Liu'an Sales 500.00 180.00 36.00 36.00 Yes 2,973,197.36 226,802.64
Ltd.(14) Company
Jingzhou Meiling Appliance Marketing Co., Limited
Jinzhou Sales 400.00 240.00 60.00 60.00 Yes -323,766.71 1,923,766.71
Ltd.(15) Company
Shensheng Meiling Appliance Marketing Limited
Shenyang Sales 300.00 284.40 94.80 94.80 Yes -383,173.35 539,173.35
Co., Ltd.(16) Company
117
Annotations to Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2011 to 31 December 2011
(Unless otherwise specified. RMB for record in the statement)
Amount
actually Balance of
State Amount in
Business Registered invested at other items Voting
Holding ments minority interest
Register nature capital (10 period-end materially right Minority
Name Type proport combi used for writing Note
place thousand forming net proport interest
(10 ion (%) ned or down minority
Yuan) investment to ion (%)
thousand not gain and loss
subsidiary
Yuan)
Wuhan Meiling Appliance Marketing Co., Limited
Wuhan Sales 500.00 455.00 91.00 91.00 Yes -143,557.24 593,557.24
Ltd.(17) Company
Zhenzhou Meiling Appliance Marketing Limited Zhengzh
Sales 300.00 108.00 36.00 36.00 Yes -2,979,701.70 4,899,701.70
Co., Ltd.(18) Company ou
Shijiazhuang Meiling Appliance Marketing Limited Shijiazhu
Sales 300.00 108.00 36.00 36.00 Yes 103,141.94 1,816,858.06
Co., Ltd. (19) Company ang
Mianyang Meiling Appliance Marketing Limited Mianyan
Sales 500.00 425.00 85.00 85.00 Yes 1,834,385.71 -
Co., Ltd.(20) Company g
Chengdu Meiling Appliance Marketing Co., Limited
Chengdu Sales 500.00 417.00 83.40 83.40 Yes -2,477,090.82 3,307,090.82
Ltd.(21) Company
Guiyang Meiling Appliance Marketing Co., Limited
Guiyang Sales 300.00 78.00 26.00 26.00 Yes 614,963.80 1,605,036.20
Ltd.(22) Company
Fuzhou Meiling Appliance Marketing Limited
Fuzhou Sales 300.00 297.00 99.00 99.00 Yes -49,785.87 79,785.87
Co., Ltd.(23) Company
Nanjing Meiling Appliance Marketing Co., Limited
Nanjing Sales 300.00 297.00 99.00 99.00 Yes -148,411.22 178,411.22
Ltd.(24) Company
Hefei Meiling White Goods Marketing Co., Limited
Hefei Sales 600.00 510.00 85.00 85.00 Yes -417,770.32 1,317,770.32
Ltd(25) Company
118
Annotations to Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2011 to 31 December 2011
(Unless otherwise specified. RMB for record in the statement)
Amount
actually Balance of
State Amount in
Business Registered invested at other items Voting
Holding ments minority interest
Register nature capital (10 period-end materially right Minority
Name Type proport combi used for writing Note
place thousand forming net proport interest
(10 ion (%) ned or down minority
Yuan) investment to ion (%)
thousand not gain and loss
subsidiary
Yuan)
Taiyuan Meiling Appliance Marketing Co., Limited
Taiyuan Sales 400.00 159.00 39.75 39.75 Yes 429,997.09 1,980,002.91
Ltd.(26) Company
Changsha Meiling Appliance Marketing Limited
Changsha Sales 500.00 180.00 36.00 36.00 Yes -691,248.80 3,891,248.80
Co., Ltd.(27) Company
Hohhot Meiling Appliance Marketing Co., Limited
Hohhot Sales 300.00 165.00 55.00 55.00 Yes 355,992.48 994,007.52
Ltd.(28) Company
Hanzhou Meiling Appliance Marketing Co., Limited
Hanzhou Sales 300.00 265.50 88.50 88.50 Yes -1,063,128.37 1,408,128.37
Ltd.(29) Company
Chongqing Meiling Appliance Marketing Limited Chongqin
Sales 300.00 255.00 85.00 85.00 Yes -369,729.48 819,729.48
Co., Ltd.(30) Company g
Kunming Meiling Appliance Marketing Limited
Kunming Sales 300.00 139.50 46.50 46.50 Yes -681,449.32 2,286,449.32
Co., Ltd.(31) Company
Shanghai Meiling Appliance Marketing Limited
Shanghai Sales 300.00 297.00 99.00 99.00 Yes -88,696.36 118,696.36
Co., Ltd.(32) Company
Nantong Meiling Appliance Marketing Co., Limited
Nantong Sales 300.00 174.00 58.00 58.00 Yes -2,264,379.77 3,524,379.77
Ltd.(33) Company
Neijiang Meiling Appliance Marketing Co., Limited
Neijiang Sales 300.00 264.00 88.00 88.00 Yes 492,542.32 -
Ltd.(34) Company
119
Annotations to Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2011 to 31 December 2011
(Unless otherwise specified. RMB for record in the statement)
Amount
actually Balance of
State Amount in
Business Registered invested at other items Voting
Holding ments minority interest
Register nature capital (10 period-end materially right Minority
Name Type proport combi used for writing Note
place thousand forming net proport interest
(10 ion (%) ned or down minority
Yuan) investment to ion (%)
thousand not gain and loss
subsidiary
Yuan)
Tianjin Meiling Appliance Marketing Co., Limited
Tianjin Sales 300.00 256.50 85.50 85.50 Yes -314,489.96 749,489.96
Ltd.(35) Company
Urumqi Meiling Appliance Marketing Co., Limited
Urumchi Sales 500.00 450.00 90.00 90.00 Yes 427,709.80 -
Ltd.公司(36) Company
Harbin Meiling Appliance Marketing Co., Limited
Harbin Sales 300.00 108.00 36.00 36.00 Yes -2,961,708.79 4,881,708.79
Ltd.(37) Company
Beijing Meiling Appliance Marketing Co., Limited
Beijing Sales 300.00 297.00 99.00 99.00 Yes -109,460.86 139,460.86
Ltd.(38) Company
Lanzhou Meiling Appliance Marketing Co., Limited
Lanzhou Sales 300.00 121.50 40.50 40.50 Yes 2,772,646.09 -
Ltd.(39) Company
Xi’an Meiling Appliance Marketing Co., Limited
Xi’an Sales 300.00 183.00 61.00 61.00 Yes -377,404.19 1,547,404.19
Ltd.(40) Company
Guangzhou Meiling Appliance Marketing Limited Guangzh
Sales 500.00 430.00 86.00 86.00 Yes -1,456,436.82 2,156,436.82
Co., Ltd.(41) Company ou
Jinan Meiling Appliance Marketing Co., Limited
Jinan Sales 300.00 108.00 36.00 36.00 Yes -1,651,560.38 3,571,560.38
Ltd.(42) Company
2. Subsidiaries obtained through business combination under the same control
(1) Sub- Subsidiary
120
Annotations to Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2011 to 31 December 2011
(Unless otherwise specified. RMB for record in the statement)
Amount
actually Balance of
State Amount in
Business Registered invested at other items Voting
Holding ments minority interest
Register nature capital (10 period-end materially right Minority
Name Type proport combi used for writing Note
place thousand forming net proport interest
(10 ion (%) ned or down minority
Yuan) investment to ion (%)
thousand not gain and loss
subsidiary
Yuan)
Sichuan Changhong Air Conditioner Co., Limited Mianyan Manufacturing
20,000.00 30,560.00 100.00 100.00 Yes
Ltd.(43) Company g and sales
Zhongshan Changhong Appliance Co., Limited Zhongsha Manufacturing
8,000.00 7,625.00 90.00 100.00 Yes
Ltd.(44) Company n and sales
3. Subsidiaries obtained through business combination under the different control
(1) Sub- Subsidiary
Limited Holding
Hefei Meiling Group Holding Co., Ltd.(45) Hefei 8,000.00 11,363.00 100.00 100.00 Yes
Company company
(2) 3rd Sub-subsidiary
Meiling Equator Appliance (Hefei) Co., Ltd Limited Manufacturing
Hefei 2,479.31 1,859.49 100.00 100.00 Yes
(46) Company and sales
Limited Manufacturing
Hefei Equator Appliance Co., Ltd (47) Hefei 1,200.00 867.06 100.00 100.00 Yes
Company and sales
Hefei Meiling Nonferrous Metal Products Limited Manufacturing
Hefei 2,428.68 2,199.64 100.00 100.00 Yes
Co., Ltd (48) Company and sales
Limited Manufacturing
Hefei Meiling Precision Tube Co., Ltd. (49) Hefei 100.00 80.00 100.00 100.00 Yes
Company and sales
Hefei Meiling Packing Products Co., Limited Manufacturing
Hefei 1,740.00 952.00 51.72 100.00 Yes
Ltd.(50) Company and sales
121
Annotations to Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2011 to 31 December 2011
(Unless otherwise specified. RMB for record in the statement)
Amount
actually Balance of
State Amount in
Business Registered invested at other items Voting
Holding ments minority interest
Register nature capital (10 period-end materially right Minority
Name Type proport combi used for writing Note
place thousand forming net proport interest
(10 ion (%) ned or down minority
Yuan) investment to ion (%)
thousand not gain and loss
subsidiary
Yuan)
Hefei Meiling Environment-friendly Package Limited Manufacturing
Hefei 80.00 64.00 100.00 100.00 Yes
Materials Co., Ltd. (51) Company and sales
Hefei Meiling Appliance Industy&Commerce Limited
Hefei Sales 500.00 300.00 100.00 100.00 Yes
Co., Ltd. (52) Company
Limited
Hefei Maston Appliance Co., Ltd (53) Hefei Sales 398.00 485.97 100.00 100.00 Yes
Company
Chaohu Meiling Appliance Marketing Co., Limited
Chaohu Sales 500.00 254.75 50.00 50.00 Yes 4,037,390.92
Ltd.(54) Company
Note: “Investment amount at period-end” and “holding proportion” listed above 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. Vary shareholders have responsibility to take the
excess losses, regulated in Article of Association, minority equity of part of market subsidiaries was negative.
122
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
(1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke
Meiling Company) was established on 29 October 2002 by the company and CAS’s Physical &
Chemical technology Research, whose registered capital was RMB 60,000,000 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 received 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;
organization code: 74309835-2; Legal Representative: Li Wei; Address: Meiling Economy
Development Zone, Feidong Longgang, Hefei City. Business Scope: R & D, exploitation,
manufacture, sales and service of cryogenic cooling equipment and products; self-operating and
agency for the import&export business of various commerce and technology.
(2) Jiangxi Meiling Refrigeration Co., Ltd. (Jingxi Meiling Refrigeration Co.,), 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. In 2011, Zhongke Meiling entered
into “Equity Transfer Agreement” with Mianyang Meiling Refrigeration Co., Ltd. 10 percent equity
of Jiangxi Meiling held by Zhongke Meiling was transferred to Mianyang Meiling Refrigerator.
Relevant changes for Industrial and Commercial was done dated 2 November 2011.
Registration No. of the Business License of Corporation Legal Person: 360200110000441;
organization code: 66748284-5; Address: No.558 Cidu Road, Jingde Town City; Legal
Representative: Liao Tao; 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 19 January 2011, the Company
increase RMB 50 million in capital of Mianyang Meiling, paid-in capital has been verified by
Capital Verification Report ［XYZH/2010CDA6040］from Chengdu Branch of Shinewing CPA CO.,
123
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Ltd. After capital increased, register capital and paid-in capital of Mianyang Meiling amounting to
RMB 100 million; of which RMB 95 million invested by the Company, a 95% of total register
capital while RMB 5 million invested by Zhongke Meiling, a 5% of total capital occupied. In 2011,
Zhongke Meiling entered into “Equity Transfer Agreement” with Jiangxi Meiling Refrigeration Co.,
Ltd. 5 percent equity of Mianyang Meiling held by Zhongke Meiling was transferred to Jiangxi
Meiling Refrigerator. Relevant ownership transfer procedure changed for Industrial and
Commercial has been completed on 18 November 2011.
Registration No. of the Business License of Corporation Legal Person: 510706000014939;
organization code: 68610561-5; Address: No.35 Mianxing East Road, Gaoxin District, Mianyang
City, Sichuan Province; Legal Representative: Liao Tao; Business Scope: R & D, manufacture and
sales of cooling apparatus, electronic products and other fittings.
(4) Hefei Meiling Appliance 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 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;
organization code: 69573778-8; Address: Woyun Road North, Lianhua Road East, Economy and
Technology Development Zone, Hefei ; Legal Representative: Deng Xiaohui; 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 Appliance Co., Ld.(Jiangxi Meiling Appliance Co.,) was a limited liability
company jointly established by the Company and Mianyang Meiling on 23 May 2011. Register
capital of the company totally as RMB 50 million, RMB 49.375 million invested by the Company,
98.75% in total register capital while RMB 0.625 million invested by Mianyang Meiling , a 1.25%
in total register capital occupied. The initial investment RMB 10.50 million was received dated 13
May 2011 with RMB 10 million from the Company and RMB 0.5 million from Mianyang Meiling.
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 Capital
Verification Report [JXKYZi(2011) No. 090] issued from Jingdezhen Xingci CPA Co., Ltd. Second
capital RMB 39.5 million was fully funded on 28 July 2011, the Company contributed RMB 39.375
million while Mianyang Meiling Company invested RMB 125,000, the contributions have been
verified by the capital verification report [Jing Xing Kuai Yan Zi (2011) No.: 134] issued from JDZ
Xingci CPA Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 360200110004455;
organization code: 57364516-4; Address: South part of Wutong Revenue, High-Tech Industrial
124
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Development District, Jingdezhen; Legal Representative: Liao Tao; Business Scope: R&D,
manufacturing and sales of refrigerator and its accessories.
(6) Changhong Ruba Trading Company (Private) Limited (Changhong Ruba), was a
joint-venture jointly established by Zhongshan Changhong Appliance Co., Ltd. and UAE RUBA
GENERAL TRADING FZE( UAE RUBA), which has been approved in “Reply of Approval of
Manufacture and sales platform jointly established in Pakistan by Zhongshan Changhong Appliance
Co., Ltd.”[YFGWZ(2011) No.:958] from Guangdong Development & Reform Commission dated 5
August 2011. The company owes register capital of USD 3 million with USD 1.8 million invested
from Zhongshan Changhong Appliance Co., Ltd. in cash, 60% of shares held while UAE RUBA
invested USD 1.2 million with 40% shares held. The company registered in Lahore Pakistan, legal
representative: Du Zhixiao; Business scope: sales of air-conditioner and other household apparatus.
(7) Xinxiang Meiling Appliance Marketing Co., Ltd. (Xinxiang Meiling) was established dated
17 May 2010 with organization code of No. 555723050; register capital amounting to RMB 3.5
million with RMB 2.065 million invested by Meiling Marketing, a 59% in total register capital;
address and business office: 1#, 21/F, Tower B, Hengshen Shijia, No.6, Baojian Rd.; legal
representative: Liu Xiangyang; business scope: wholesale and retails of household apparatus.
(8) Luohe Meiling Appliance Marketing Co., Ltd. (Luohe Meiling) was established dated 10
December 2010 with organization code of No. 566483064; register capital amounting to RMB 5
million with RMB 1.85 million invested by Meiling Marketing, a 37% in total register capital. In
March 2013, part of the equity RMB 1.35 million was transferred by Meiling Marketing Company;
capital contribution for Meiling Marketing up to RMB 3.2 million after equity transfer, a 64% in
register capital; the change procedure for equity transfor of industrial and commerce has completed
on 20 May 2013.
Address and business office: Middle section, Yellow Rive Rd., Yancheng District, Luohe City;
legal representative: Liu Xiangyang; business scope: sales and maintenance of refrigerator machine,
air-conditioner, TV set, washing machine, injection machine of computer control, digital products,
computer heater, plastic products, packaging products, decorations, electronic products and
accessories, daily necessaries and household apparatus.
(9) Wuhu Meiling Appliance Marketing Co., Ltd.(Wuhu Meiling) was established on December 24,
2010 with organization code of No. 567508470; register capital amounting to RMB 6 million with
RMB 2.16 million invested by Meiling Marketing, a 36% in total register capital; address and
business office: No. 1002, Qiaohong International Commercial Town, Jinhu District, Wuhu City;
Legal representative: Cui Lianbing; Business scope: sales and maintenance of household apparatus.
(10) Changchun Meiling Appliance Marketing Co., Ltd. (Changchun Meiling) was established on
December 22, 2010 with organization code of No. 563926181; register capital amounting to RMB 3
million with RMB 2.91 million invested by Meiling Marketing, a 97% in total register capital;
address and business office: 301 South part, No. 21, Ximinzhu Street, Chaoyang District,
Changchun City; Legal representative: Tang Yiliang; Business scope: sales and maintenance of
refrigerator machine, air-conditioner, TV set, washing machine, injection machine of computer
control, digital products, computer heater, plastic products, packaging products, decorations,
electronic products and accessories, general merchandise and household apparatus.
(11) Bengbu Meiling Appliance Marketing Co., Ltd. (Bengbu Meiling) was established on December
27, 2010 with organization code of No. 567509043; register capital amounting to RMB 3 million
125
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
with RMB 2.55 million invested by Meiling Marketing, a 85% in total register capital; address and
business office: East Room, 16/F, East part of Office building, 9/F-18/F, New Century Plaza, No.
1028 Huihe Rd., Bengbu City; Legal representative: Cui Lianbing; Business scope: sales and
maintenance of refrigerator machine, air-conditioner, TV set, washing machine, injection machine
of computer control, digital products, computer heater, plastic products, packaging products,
decorations, electronic products and accessories, general merchandise and household apparatus.
(12) Hengyang Meiling Appliance Marketing Co., Ltd. (Hengyang Meiling) was established on
December 24, 2010 with organization code of No. 567652288; register capital amounting to RMB 3
million with RMB 1.08 million invested by Meiling Marketing, a 36% in total register capital;
address and business office: No. 302, Yujia Community, Yujia Group, Jiangdong Village, Zhuhui
District, Hengyang City; Legal representative: Zhu Pu; Business scope: refrigerator machine,
air-conditioner, TV set, washing machine, injection machine of computer control, digital products,
computer heater, plastic products, packaging products, decorations, electronic products and
accessories and sales of general merchandise.
(13) Nanchang Meiling Appliance Marketing Co., Ltd. (Nanchang Meiling) was established on 5
January 2011 with organization code of No. 566294036; register capital amounting to RMB 3 million
with RMB 1.08 million invested by Meiling Marketing, a 36% in total register capital; address and
business office: No. 192, Gaoxin 7# Rd., Gaoxin District, Nanchang City; Legal representative: Zhu
Pu; Business scope: wholesale and retails of refrigerator machine, air-conditioner, TV set, washing
machine, injection machine of computer control, digital products, computer heater, plastic products,
packaging products, decorations, electronic products and accessories, general merchandise and
maintenance of household apparatus.
(14)Liu’an Meiling Appliance Marketing Co., Ltd. (Liu’an Meiling) was established on 13 January
2011 with organization code of No. 56753250X; register capital amounting to RMB 5 million with
RMB 1.80 million invested by Meiling Marketing, a 36% in total register capital; address and
business office: Management Committee Building, Jinsan Rd., Economic & Development District,
Liu’an City; Legal representative: Cui Lianbing; Business scope: wholesale and retails of
refrigerator machine, air-conditioner, TV set, washing machine, injection machine of computer
control, digital products, computer heater, plastic products, packaging products, decorations,
electronic products and accessories, general merchandise, marketing and after-sell service of
household apparatus; maintenance of household apparatus.
(15)Jinzhou Meiling Appliance Marketing Co., Ltd. (Jinzhou Meiling) was established on 10 January
2011 with organization code of No. 565495194; register capital amounting to RMB 4 million with
RMB 1.60 million invested by Meiling Marketing, a 40% in total register capital; address and
business office:No.2, 2/F, 1# door, 13 Building, (Rongxin Garden), Beijing East Rd., Shashi District;
Legal representative: Zhu Pu; Business scope: refrigerator machine, air-conditioner, TV set,
washing machine, injection machine of computer control, digital products, computer heater, plastic
products, packaging products, decorations, electronic products and accessories, sales of general
merchandise; maintenance of household apparatus.
(16)Shenyang Meiling Appliance Marketing Co., Ltd. (Shenyang Meiling) was established on 26
January 2011 with organization code of No. 564699988; register capital amounting to RMB 3 million
with RMB 2.844 million invested by Meiling Marketing, a 94.80% in total register capital; address
and business office:No.30, Renao Rd., Shenhe District, Shenyang City; Legal representative: Tang
Yiliang; Business scope: household apparatus, refrigerator machine, injection machine of computer
control and sales of general merchandise.
126
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
(17)Wuhan Meiling Appliance Marketing Co., Ltd. (Wuhan Meiling) was established on 10 January
2011 with organization code of No. 565593579; register capital amounting to RMB 5 million with
RMB4.55 million invested by Meiling Marketing, a 91% in total register capital; address and
business office:Room 4, Room 5, 4/F, Building C, No.50 Jiefang Gongyuan Rd., Jiang’an District,
Wuhan City; Legal representative: Zhu Pu; Business scope: refrigerator machine, air-conditioner,
washing machine, electronic products and accessories and sales of general merchandise.
(18)Zhengzhou Meiling Appliance Marketing Co., Ltd. (Zhengzhou Meiling) was established on 17
January 2011 with organization code of No. 568607614; register capital amounting to RMB 3 million
with RMB 1.08 million invested by Meiling Marketing, a 36% in total register capital; address and
business office:No.11, 4/F, No.18 Chengdong Rd. East, Guancheng District, Zhengzhou City; Legal
representative: Liu Xiangyang; Business scope: sales of refrigerator machine, air-conditioner, TV
set, washing machine, injection machine of computer control, digital products, computer heater,
plastic products, packaging products & decorations, electronic products and accessories, general
merchandise and maintenance of household apparatus.
(19)Shijiazhuang Meiling Appliance Marketing Co., Ltd. (Shijiazhuang Meiling) was established on
14 January 2011 with organization code of No. 56891178X; register capital amounting to RMB3
million with RMB 1.08 million invested by Meiling Marketing, a 36% in total register capital;
address and business office:No.669, Chengjiao Street South, Qiaoxi District, Shijiazhuang City;
Legal representative: Tang Yiliang; Business scope: refrigerator machine, air-conditioner, TV set,
washing machine, injection machine of computer control, digital products(excluding advance licese
project), computer heater, plastic products(excluding medical plastic products, and advance lices
project), packaging products, art & crafts products(excluding gold & silver article), electronic
products and accessories, sales of general merchandise; maintenance of household
apparatus(excluding items prohibited by laws, regulations and state council; for items needs
approval from other department, should be operated after approval licenses obtained).
(20)Mianyang Meiling Appliance Marketing Co., Ltd. (Mianyang Meiling) was established on 27
January 2011 with organization code of No. 567642821; register capital amounting to RMB 5 million
with RMB 2.6 million invested by Meiling Marketing, a 52% in total register capital. In June 2013,
part of the equity RMB 1.6 million was transferred by Meiling Marketing Company; capital
contribution for Meiling Marketing up to RMB 4.25 million after equity transfer, a 85% in register
capital; the change procedure for equity transfor of industrial and commerce has completed on 3
June 2013.
Address and business office: Commercial & Trade Plaza, Gaoxin District, Mianyang; Legal
representative: Fang Rongxin; Business scope: sales and maintenance of household apparatus,
general merchandise and electronic products.
(21) Chengdu Meiling Appliance Marketing Co., Ltd. (Chengdu Meiling) was established on 26
January 2011 with organization code of No. 567191530; register capital amounting to RMB 5 million
with RMB 4.07 million invested by Meiling Marketing, a 81.40% in total register capital; address
and business office:No.22, Shuangfeng West Rd., Wuhou District, Chengdu City; Legal
representative: Fang Rongxin; Business scope: sales of refrigerator machine, air-conditioner,
household apparatus, digital products, heater, plastic products, art & crafts products, electronic
products and accessories, general merchandise; maintenance of household apparatus.
(22)Guiyang Meiling Appliance Marketing Co., Ltd. (Guiyang Meiling) was established on 24
127
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
January 2011 with organization code of No. 569205772; register capital amounting to RMB 3 million
with RMB 0.78 million invested by Meiling Marketing, a 26% in total register capital; address and
business office:No.16-3, Pubu Business Building, No. 19 Yan’an West Rd., Yunyan District,
Guiyang City; Legal representative: Fang Rongxin; Business scope: sales of refrigerator machine,
air-conditioner, TV set, washing machine, injection machine of computer control, digital
products(previously permit excluded) , computer heater, plastic products, packaging products, art &
crafts products, electronic products (previously permit excluded)and accessories, sales of general
merchandise; maintenance of household apparatus.
(23)Fuzhou Meiling Appliance Marketing Co., Ltd. (Fuzhou Meiling) was established on 25 January
2011 with organization code of No. 569281679; register capital amounting to RMB 3 million with
RMB 2.97 million invested by Meiling Marketing, a 99% in total register capital; address and
business office:05, 22/F, Jin’an Building, Jinyuan Garden, No. 328 Liuyi North Rd., Ji’an District,
Fuzhou City; Legal representative: Zhu Pu; Business scope: refrigerator machine, air-conditioner,
TV set, washing machine, injection machine of computer control, digital products , computer heater,
plastic products, packaging products, art & crafts products, electronic products and accessories,
sales of general merchandise; maintenance of household apparatus.
(24)Nanjing Meiling Appliance Marketing Co., Ltd. (Nanjing Meiling) was established on 14
February 2011 with organization code of No. 567226780; register capital amounting to RMB 3
million with RMB 2.97 million invested by Meiling Marketing, a 99% in total register capital;
address and business office:14/F, Dongheng International Business Building, No. 288 Zhongshan
South Rd., Baixia District, Nanjing City ; Legal representative: Fang Rongxin; Business scope:
refrigerator machine, air-conditioner, TV set, washing machine, injection machine of computer
control, computer heater, plastic products, packaging products and decorations, electronic products
and accessories, sales of general merchandise, TV and digital products; maintenance of household
apparatus.
(25) Hefei Meiling White Goods Marketing Co., Ltd. (White Goods) was established on 21 January
2011 with organization code of No. 568971344; register capital amounting to RMB 6 million with
RMB 5.10 million invested by Meiling Marketing, a 85% in total register capital; address and
business office:A-201, Huayi Science & Technology Park, Gaoxin District, Hefei City; Legal
representative: Qin Tangzong; Business scope: refrigerator machine, air-conditioner, TV set,
washing machine, digital products, computer heater, plastic products, packaging products and
decorations, electronic products and accessories, sales of household apparatus and maintenance of
household apparatus.
(26)Taiyuan Meiling Appliance Marketing Co., Ltd. (Taiyuan Meiling) was established on 18 January
2011 with organization code of No. 568472262; register capital amounting to RMB 4 million with
RMB1.59 million invested by Meiling Marketing, a 39.75% in total register capital; address and
business office:6/F, Hanyuan Building, Qinxian North Street, Xiaodian District, Taiyuan City; Legal
representative: Tang Yiliang; Business scope: refrigerator machine, household apparatus, injection
machine of computer control, digital products , plastic products, packaging products and
decorations, sales of electronic products and accessories and general commodities; maintenance of
household apparatus.
(27)Changsha Meiling Appliance Marketing Co., Ltd. (Changsha Meiling) was established on 26
January 2011 with organization code of No. 567688918; register capital amounting to RMB 5 million
with RMB 1.80 million invested by Meiling Marketing, a 36% in total register capital; address and
business office: Room 301, Oriental Ginza, No. 348 Yuanda No.1 Rd., Furong District, Changsha
128
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
City; Legal representative: Zhu Pu; Business scope: refrigerator machine, washing machine,
injection machine of digital control, heater , plastic products, electrics outer packaging products and
decorations, sales of electronic products and accessories and general commodities.
(28)Hohhot Meiling Appliance Marketing Co., Ltd. (Hohhot Meiling) was established on 21 February
2011 with organization code of No. 566949493; register capital amounting to RMB 3 million with
RMB 1.65 million invested by Meiling Marketing, a 55% in total register capital; address and
business office: No. 516, 4/F, Comprehensive Building, Jiangjun Garden, No. 139 Dongku Street,
Xincheng District, Hohhot City; Legal representative: Tang Yiliang; Business scope: sales of
refrigerator machine, electronic products, hardware and AC, air-conditioner equipment, digital
products, plastic products, general commodities , packaging products and decoration materials;
sales and maintenance of household apparatus.
(29) Hangzhou Meiling Appliance Marketing Co., Ltd. (Hangzhou Meiling) was established on 17
February 2011 with organization code of No. 568772548; register capital amounting to RMB 4
million with RMB 2.655 million invested by Meiling Marketing, a 88.50% in total register capital;
address and business office: Room 609, 1# building, Nanbei Shangwugang, Gongshu District,
Hangzhou City; Legal representative: Zhou Wenhui; Business scope: sales of household apparatus,
refrigerator machine, plastic products, decoration materials, art products, electronic products,
injection machine with digital control and general merchandise; maintenance of household
apparatus.
(30) Chongqing Meiling Appliance Marketing Co., Ltd. (Chongqing Meiling) was established on
1 March 2011 with organization code of No. 569914835; register capital amounting to RMB 3 million
with RMB 2.55 million invested by Meiling Marketing, a 85% in total register capital; address and
business office: No. 105, No. 106 and No.111, Dayang Gongqiao, Shapingba District, Chongqing
City; Legal representative: Fang Rongxin; Business scope: wholesale and retails of refrigerator
machine, air-conditioner, TV set, washing machine, injection machine with computer control,
digital products, computer heater, plastic products, packaging products and decorations, electronic
products and accessories(electronic publisher excluded), general commodities (agriculture film
excluded); maintenance of household apparatus.
(31) Kunming Meiling Appliance Marketing Co., Ltd. (Kunming Meiling) was established on 28
February 2011 with organization code of No. 568819406; register capital amounting to RMB 3
million with RMB 1.395 million invested by Meiling Marketing, a 46.50% in total register capital;
address and business office:6/F, No. 13 Longquan Rd., Kunming City; Legal representative: Fang
Rongxin; Business scope: sales of household apparatus and general commodities.
(32) Shanghai Meiling Appliance Marketing Co., Ltd. (Shanghai Meiling) was established on 9
March 2011 with organization code of No. 569647714; register capital amounting to RMB 3 million
with RMB 2.97 million invested by Meiling Marketing, a 99% in total register capital; address and
business office: A Room 201-9, No. 15, 152 Lane, Yanchang Rd., Shanghai City; Legal
representative: Zhou Wenhui; Business scope: sales of household apparatus, machinery equipment,
digital products, plastic products, craft products, packaging materials, electronic products and its
accessories and general merchandise; maintenance of household apparatus.
(33) Nantong Meiling Appliance Marketing Co., Ltd. (Nantong Meiling) was established on 8
March 2011 with organization code of No. 570386216; register capital amounting to RMB 3 million
with RMB 1.75 million invested by Meiling Marketing, a 58% in total register capital; address and
business office: Room 2207, 1# Wangfu Building, No. 6 Renmin East Rd., Nantong City; Legal
129
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
representative: Zhou Wenhui; Business scope: sales and maintenance of refrigerator machine,
air-conditioner, washing machine, injection machine with computer control, digital products,
computer heater, plastic products, packaging products and decorations, electronic products and
accessories and general commodities.
(34) Neijiang Meiling Appliance Marketing Co., Ltd. (Neijiang Meiling) was established on 8
March 2011 with organization code of No. 570707198; register capital amounting to RMB 3 million
with RMB 2.4 million invested by Meiling Marketing, a 80% in total register capital. In June 2013,
part of the equity RMB 240,000 was transferred by Meiling Marketing Company; capital
contribution for Meiling Marketing up to RMB 2.64 million after equity transfer, a 88% in register
capital; the change procedure for equity transfor of industrial and commerce has completed on 26
June 2013.
Address and business office: middle layer, No. 386 Yuxi Rd., Zhong District, Neijiang City;
Legal representative: Fang Rongxin; Business scope: wholesales and retails of refrigerator machine,
air-conditioner, washing machine, injection machine with computer control, computer heater,
plastic products, packaging products and decorations, electronic products and accessories and
general commodities; maintenance of household apparatus.
(35) Tianjin Meiling Appliance Marketing Co., Ltd. (Tianjin Meiling) was established on 2 March
2011 with organization code of No. 569324093; register capital amounting to RMB 3 million with
RMB 2.565 million invested by Meiling Marketing, a 85.5% in total register capital; address and
business office: middle layer, No. 3001-96, economy and development centre, No. 9 Junling Rd.,
Electronic Industrial Park, North Gate, Jinnan District; Legal representative: Tang Yiliang; Business
scope: wholesales of household apparatus, injection machine with computer control, plastic
products, packaging products, electronic products and accessories and general commodities;
maintenance of household apparatus.
(36) Urumchi Meiling Appliance Marketing Co., Ltd. (Urumchi Meiling) was established on 4
March 2011 with organization code of No. 56887356-8; register capital amounting to RMB 3 million
with RMB 2.7 million invested by Meiling Marketing, a 90% in total register capital; address and
business office: Room 505, Yinzuo Centre, No. 196 Tianjin South Rd., Urumchi City; Legal
representative: Fang Rongxin; Business scope: sales and maintenance of household apparatus,
hardware and AC, electronic products and machinery equipments.
(37) Harbin Meiling Appliance Marketing Co., Ltd. (Harbin Meiling) was established on 6 April
2011 with organization code of No. 571906754; register capital amounting to RMB 3 million with
RMB 1.08 million invested by Meiling Marketing, a 36% in total register capital; address and
business office: No.4, Hengshan Rd., Nangang Centre District, Jinkai Zone, Harbin City; Legal
representative: Tang Yiliang; Business scope: sales of household apparatus, office automation
equipment, electronic equipment, packaging products and plastic products as well as relevant
technology service.
(38) Beijing Meiling Appliance Marketing Co., Ltd. (Beijing Meiling) was established on 28
March 2011 with organization code of No. 573245005; register capital amounting to RMB 3 million
with RMB 3.97 million invested by Meiling Marketing, a 99% in total register capital; address and
business office: No.23, Xinhua West Street, Majuqiao Town, Tongzhou District, Beijing; Legal
representative: Qin Tangzong; Business scope: sales of household apparatus, computer software and
assistant equipments, daily grocery, electronic products, general equipments, specific equipments;
maintenance of household apparatus.
130
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
(39)Lanzhou Meiling Appliance Marketing Co., Ltd. (Lanzhou Meiling) was established on 25
March 2011 with organization code of No. 571608108; register capital amounting to RMB 3 million
with RMB 1.215 million invested by Meiling Marketing, a 40.5% in total register capital; address
and business office: No. 134, Jiayuguan West Rd., Chengguan District, Lanzhou City ; Legal
representative: Fang Rongxin; Business scope: retails and wholesale of refrigerator machine,
air-conditioner, TV set, washing machine, injection machine of computer control, digital products,
computer heater, plastic products, electronic products and accessories and general merchandise;
maintenance of household apparatus.
(40)Xi’an Meiling Appliance Marketing Co., Ltd. (Xi’an Meiling) was established on 13 April 2011
with organization code of No. 570227776; register capital amounting to RMB 3 million with RMB
1.83 million invested by Meiling Marketing, a 61% in total register capital; address and business
office:No.10715, 7/F, 1 Unit, #12 Building, Xinxing Junjin Garden, No. 369 Jinhua Rd., Xincheng
District, Xi’an City ; Legal representative: Fang Rongxin; Business scope: sales and maintenance of
refrigerator machine, air-conditioner, TV set, washing machine, injection machine of computer
control, digital products, computer heater, plastic products, packaging and decorations, electronic
products and accessories and general merchandise; maintenance of household apparatus.
(41)Guangzhou Meiling Appliance Marketing Co., Ltd. (Guangzhou Meiling) was established on 13
May 2011 with organization code of No. 574044061; register capital amounting to RMB 5 million
with RMB 4.3 million invested by Meiling Marketing, a 86% in total register capital; address and
business office: 2/F, No. 98 Tanxin Street, Dongheng Rd., Baiyun District, Guangzhou City; Legal
representative: Zhu Pu; Business scope: wholesales and maintenance of refrigerator machine,
electronic products and accessories, plastic injection machine, general merchandise and plastic
products.
(42) Jinan Meiling Appliance Marketing Co., Ltd. (Jinan Meiling) was established on 3 June 2011
with organization code of No. 575560578; register capital amounting to RMB 5 million with RMB
1.08 million invested by Meiling Marketing, a 36% in total register capital; address and business
office: No.249, Huangqiao Industry Park, Donglihe West Rd., Tianqiao District, Jinan City; Legal
representative: Liu Xiangyang; Business scope: wholesales & retails and maintenance of household
apparatus, electronic products and accessories; wholesales and retails of general merchandise and
plastic products.
(43) 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 material), 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;
131
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
organization code of No. 68236997-1; Address: No.35, Mianxing East Road, Gaoxin District,
Mianyang City; Legal Representative: Li Wei; 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)
(44) Zhongshan Changhong Appliance 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 monetary 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 has been
transferred by Changhong Air-conditioner on April 11, 2010.
Registration No. of the Business License of Corporation Legal Person: 442000000290879;
organization code of No. 728773292; Address: Central Nantou Avenue, Nantou Town, Zhongshan
City; Legal Representative: Li Wei; Business Scope: Mainly engaged in production, processing,
sale of air conditioners, refrigerator and freezer, heat pump, heater, air conditioner fan, electric fan,
humidifier, electric heater and sparepart of the above menionted products etc.
(45) 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 has 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 has 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;
organization code of No.14918553-3; Address: Main plant of 2# South, Tangkou Road, Lianhua
Road East, Economy&Technology Development Zone, Hefei; Legal Representative: Li Wei;
Business Scope: Manufacture of washing machine, plastic products, fine welded pipe, cooling fittings,
package products and decoration products; Self-produced products and raw&auxilary materials, machinery
equipment, instrument and department sales.
(46) Meiling Equator Appliance (Hefei) Co., Ltd.( Equator 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 equipment, 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
132
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
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% equity owned by Anhui Meiling Electric
Co., Ltd has been transferred totally to original Meiling Group in July 2009.
Registration No. of the Business License of Corporation Legal Person: 340100000004040;
organization code of No. 76082307-7; Address: Meiling Industry Zone, Development Zone,
Feidong Xinchang, Hefei City; Legal Representative: Huang Danian; Business Scope: Research,
manufacture and sales of Roller washing machine, wave automatically washing machine, wave double-tube
washing machine and other appliance; Manufactures and sales of the controller and matching line of
refrigerator, washing machine, air-conditioner and other household appliance
(47) Hefei Equator Apparatus Co., Ltd.( EquatorApparatus for short) was jointly set up by original
Meiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was RMB 12 million,
among which, original Meiling Group invested RMB 8,670,600 in monetary capital, accounting
72.255% in registered capital; Equator 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;
organization code of No. 66624534-6; 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&auxilary materials as well as import&export business( projects limited
by the national excluded)
(48) 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 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;
organization code of No.14911702-0; 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
(49) Hefei Meiling Precision Tube Co., Ltd. (Precision Tube for short) was set up in March 2004 with
133
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
RMB one million register capitals. Among which, the original Meiling Group invested RMB0.8
million in monetary capital accounting 80% of register capital while Anhui Meiling Electric Co.,
Ltd. Invested RMB 0.2 million in monetary capital accounting 20% of register capital. The
investment being verified by [WYAYZ(2004) No. 041] from Anhui Yongan CPAs Co., Ltd. 20%
equity 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;
organization code of No.75854571-7; Address: Meiling Industry Zone, Development Zone, Feidong
Xinchang, Hefei City; Legal Representative: Wu Yong; Business Scope: Manufacture and sales of fine
welded pipe and cooling fittings.
(50) 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 17 June 2005, twenty-five percent equity owned by Singapore Anda Development
Co., Ltd transferred to original Meiling Group freely by one-time. The Company turned into
domestic-capital enterprise 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.
Registration No. of the Business License of Corporation Legal Person: 3401001007135;
organization code of No.61030893-4; 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 aluminium foil sealing tape.
(51) Hefei Meiling Environment-friendly Package Materials Co., Ltd. (Environment-friendly Package
for short) 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;
organization code of No. 77495478-0; Address: Meiling Industry Zone,Dong twenty bu, Hefei
City; Legal Representative: Huang Danian; Manufacture and sales of belt, EPS, foam products, PP
hollow profile, moulded pulp, honeycomb paperboard and materials of granulation package.
(52) Hefei Meiling Appliance Industy&Commerce Co., Ltd. (Appliance Industy&Commerce for short)
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 monetary capital, accounting 10% of register
capital. The investment being verified by [WDHYZ(2003) No. 1117] of Anhui Ludong CPAs Co., Ltd. On
134
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
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
remains 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;
organization code of No.75097049-5; Address: Feidong Xincheng Development Zone, Hefei City;
Legal Representative: Jiang Changzhi; Business scope: Manufacture and sales of household apparatus
(products need for specific approved, should not be operation until approved)
(53) Hefei Maston Appliance Co., Ltd (Maston for short) was set up in November 2004 with
register capital 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;
organization code of No.76900598-6; Address: No.669, Changjiang West Road, Hefei City; Legal
Representative: Jiang Changzhi; Business scope: R&D, manufacture and sale of refrigerator and small
appliance and other appliance.
(54) Chaohu Meiling Appliance Marketing Co., Ltd. (Chaohu Meiling) was established on 1
December 2009 with register capital of RMB 5 million. Chaohu Hualong Appliance Co., Ltd.
invested RMB 2 million, a 40% of the total register capital; Meiling Marketing Company invested
RMB 1 million, 20% of the total register capital while RMB 2 million totally collected by Jincheng
Appliance Co., Ltd. and other 7 shareholders in Wuwei County Anhui Province. In 2011, Chaohu
Hualong Appliance Co., Ltd entered into contract with Meiling Marketing Company and other 7
natural person shareholders for 40% equity held transferring and Meiling Marketing transferred
32% of equity held. After equity transferring, Meiling Marketing invested RMB 2.5 million of 50%
equity of Chaohu Meiling held and become the first largest shareholders; Jincheng Appliance Co.,
Ltd in Wuwei Country, Anhui Province invested RMB 1 million of 20% equity held; Chaohu Renhe
Commercial & Trade Company invested RMB 0.75 million of 15% equity held; other 10 natural
person shareholders invested RMB 0.75 million in total of 15% equity held. The equity transferring
finished changes in industrial & commercial dated 12 May 2011.
Registration No. of the Business License of Corporation Legal Person: 341402000029955(1-1);
organization code of No. 69739029-8; Address: No. 107, 56# building, Lijing International
Community, Jiankang West Rd., Chaohu City; Legal Representative: Cui Lianbin; Business scope:
sales and maintenance of household apparatus and recycle of aged apparatus.
135
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
(II) Operational entity with controlling right formed through special purpose vehicle, or trust
operation or accepting leases: Nil
(III) Changes of consolidation range in consolidated financial statement: Nil
(IV) Enterprise combination occurred in this year
1. Subsidiary obtained from combination under same control: Nil
2. Subsidiary obtained from combination under difference control: Nil
3. Counter purchase: Nil
(V) Translation of foreign currency statements
Sub-subsidiary -- Changhong Ruba located in Lahore, Pakistan. Book keeping with local
currency Rupee, balance sheet at year-end was converted as:
Amount for Amount for Excha Amount for
Amount for Exchan
Item Item nge
FC ge rate
RMB FC rate RMB
Current
Current
627,365,795 0.0628 39,409,237.16 441,591,727 0.0628 27,739,467.50
assets liability
Non-current Total
441,591,727 0.0628 27,739,467.50
assets liability
Total assets 5,769,813 0.0628 362,442.37 259,900,258 0.0734 19,070,433.88
Paid-in capital
Retained profit -68,356,376 -4,614,758.20
Total owners’
191,543,882 12,032,212.03
equity
Liability and total
633,135,609 39,771,679.53
equity
Difference between foreign currency
-2,423,463.65
conversion
Including: Difference between the translation of
foreign currency statement attributable to parent -1,454,078.19
company
VI. 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 1 January 2013; “period-end” refers to 30 June 2013; “current period”
refers to 1 January 2013 to 30 June 2013; “the last period” refers to 1 January 2012 to 30 June 2012;
the currency is RMB.
136
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
1. Monetary fund
Period-end Year-begin
Item Exchange Original Exchange
Original currency RMB converted RMB converted
rate currency rate
Cash holdings 329,859.54 262,422.50
RMB 325,432.32 325,432.32 260,290.84 260,290.84
Rupee 70,478.00 0.062817 4,427.22 33,048.99 0.0645 2,131.66
Bank deposit 1,372,590,331.02 1,593,192,651.45
RMB 1,288,743,236.21 1,288,743,236.21 1,542,727,712.20 1,542,727,712.20
USD 12,425,513.89 6.1787 76,773,522.67 7,066,955.26 6.2855 44,419,347.29
EUR 33.14 8.0536 266.90 285,109.27 8.3176 2,371,424.86
AUD 334,012.01 5.7061 1,905,905.93 292,056.42 6.5363 1,908,968.38
Rupee 82,261,167.78 0.062817 5,167,399.31 27,367,422.02 0.0645 1,765,198.72
Other monetary
583,529,881.35 107,852,504.18
fund
RMB 570,057,964.76 570,057,964.76 102,458,789.91 102,458,789.91
USD 2,180,245.70 6.1787 13,471,084.11 684,206.86 6.2855 4,300,582.22
EUR 5.82 8.0536 46.87 130,952.36 8.3176 1,089,209.35
AUD 137.68 5.7061 785.62 600.14 6.5363 3,922.70
Total 1,956,450,071.91 1,701,307,578.13
Balance at period-end saving overseas amounting to RMB 5,171,826.53; other monetary fund mainly
refers to the margin of bank acceptance bill and savings of foreign exchange in account that need
for verified; except margins, no amount of pledge or froze that exits recovery potential risk for
reliability in monetary funds.
2.Note receivable
(1) Category of notes receivable
Category Period-end Year-begin
Bank acceptance bill 2,474,225,570.67 1,738,725,417.01
Commercial acceptance bill 15,801,101.32
Total 2,490,026,671.99 1,738,725,417.01
Note receivable at period-end increase 751,301,300 Yuan over that of year-begin with 43.21% up, mainly
137
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
because bank acceptance received in peak seasons increased which has not yet due for collection in the Period.
(2) Top five notes mortgaged by end of the period:
Note
Category Issuing company Issuing Maturity Amount
Serials
Anhui Tianyang Group Bengbu Tianyang 10300052
Bankacceptance 2013.05.31 2013.11.30 10,000,000.00
Jiaodian Co., Ltd. 20464471
Anhui Tianyang Group Bengbu Tianyang 10300052
Bankacceptance 2013.05.31 2013.11.30 6,800,000.00
Jiaodian Co., Ltd. 20464472
Anqing Ruilin Economy and Trade Co., 40200051
Bankacceptance 2013.02.27 2013.08.27 5,800,000.00
Ltd. 22274339
Beijing Large and Medium-sized Electrical 31300051
Bankacceptance 2013.05.21 2013.11.21 5,045,475.89
Appliaces Chain Co., Ltd. 21188796
30500053
Bankacceptance Changsha Tongcheng Holdings Co., Ltd. 2012.12.21 2013.06.21 5,000,000.00
22126327
Total 32,645,475.89
(3) Top five notes endorsed to others but not yet due at the end of the period:
Category Issuing company Issuing Maturity Amount Note Serials
Tianjin Hengxin Ruida Logistic Co., 3090005324
Bankacceptance 2013.04.15 2013.10.15 12,500,000.00
Ltd. 707593
Suning purchasing center of Suning
Bankacceptance 2013.04.12 2013.10.11 10,310,337.90 008059231
appliance Co., ltd.
3080005392
Bankacceptance Shanghai Suning Appliance Co., Ltd. 2013.03.01 2013.09.01 10,000,000.00
202197
3080005393
Bankacceptance Guangdong Suning Appliance Co., Ltd. 2013.03.21 2013.09.21 10,000,000.00
527319
Fujian Suning Yunshang Commercial 3010005122
Bankacceptance 2013.04.26 2013.10.26 10,000,000.00
and Trading Co., Ltd. 055749
Total 52,810,337.90
(4) Note has been discount at period-end without expiration:
Category Issuing company Issuing Maturity Amount Note Serials
1020005222
Bankacceptance Chongqing Department Store Co., Ltd. 2013.04.15 2013.10.15 2,000,000.00
367822
138
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
1020005222
Bankacceptance Chongqing Department Store Co., Ltd. 2013.03.18 2013.09.18 1,000,000.00
365809
1020005222
Bankacceptance Chongqing Department Store Co., Ltd. 2013.03.22 2013.09.18 1,000,000.00
365934
1020005222
Bankacceptance Chongqing Department Store Co., Ltd. 2013.03.25 2013.09.25 1,000,000.00
365965
1020005222
Bankacceptance Chongqing Department Store Co., Ltd. 2013.03.25 2013.09.25 1,000,000.00
365966
Total 6,000,000.00
3.Account receivables
(1)Age structure of account receivable
Period-end Year-begin
Item Book balance Bad debt provision Book balance Bad debt provision
Ratio Ratio Ratio Ratio
Amount Amount Amount Amount
(%) (%) (%) (%)
Within 1
1,184,894,460.44 97.68 52,669,271.71 84.53 775,695,422.25 97.32 33,467,560.05 77.41
year
1-2 years 10,725,187.68 0.88 1,488,402.21 2.39 7,229,951.96 0.91 1,088,916.12 2.52
2-3 years 7,813,547.08 0.64 767,770.13 1.23 5,396,757.25 0.68 1,731,603.91 4.01
3-4 years 4,893,435.49 0.40 2,684,766.41 4.31 3,964,305.65 0.50 2,319,394.11 5.36
4-5 years 1,283,845.34 0.11 1,256,280.96 2.02 1,758,197.03 0.22 1,757,320.91 4.06
Over 5
3,490,068.99 0.29 3,437,058.19 5.52 2,953,328.96 0.37 2,871,087.16 6.64
years
Total 1,213,100,545.02 100.00 62,303,549.61 100.00 796,997,963.10 100.00 43,235,882.26 100.00
Net value 1,150,796,995.41 753,762,080.84
Account receivables at period-end increase 397,034,900 Yuan over that of year-begin with 52.67% up, mainly
because revenue from sales in the Period increased and due to the time difference of sales and money collection.
(2)Risk structure of account receivable
Period-end Year-begin
Item Book balance Bad debt provision Book balance Bad debt provision
Ratio Ratio Ratio Ratio
Amount Amount Amount Amount
(%) (%) (%) (%)
139
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Account receivable
with single
significant amount
- -
and withdrawal
single item bad debt
provision
Account receivable withdrawal bad debt provision by combination
combination 1 1,070,049,239.31 88.21 59,822,715.87 5.59 679,439,223.93 85.25 40,702,097.28 5.99
combination 2 140,570,471.97 11.59 115,024,954.19 14.43
Combination
1,210,619,711.28 99.80 59,822,715.87 4.94 794,464,178.12 99.68 40,702,097.28 5.12
Subtotal
Account receivable with
single minor amount but
2,480,833.74 0.20 2,480,833.74 100.00 2,533,784.98 0.32 2,533,784.98 100.00
withdrawal single item
bad debtprovision
Total 1,213,100,545.02 100.00 62,303,549.61 5.14 796,997,963.10 100.00 43,235,882.26 5.42
Net value 1,150,796,995.41 753,762,080.84
(3)Account receivable with single significant amount and withdrawal bad debt provision single: Nil
(4)Withdrawal bad debt provision by account age in combination 1: ：
Period-end Year-begin
Account age Rati Rati
Bad debt
Amount o Bad debt provision Amount o
provision
(%) (%)
Within 1
1,053,325,434.18 5 52,666,271.71 660,467,783.05 5 33,023,389.15
year
1-2 years 6,961,542.05 15 1,044,231.31 7,259,440.83 15 1,088,916.12
2-3 years 2,193,628.91 35 767,770.12 4,947,439.74 35 1,731,603.91
3-4 years 4,881,393.49 55 2,684,766.42 4,217,080.21 55 2,319,394.11
4-5 years 183,762.44 85 156,198.07 57,907.46 85 49,221.35
Over 5 years 2,503,478.24 100 2,503,478.24 2,489,572.64 100 2,489,572.64
Total 1,070,049,239.31 59,822,715.87 679,439,223.93 40,702,097.28
Net value 1,010,226,523.44 638,737,126.65
(5)Accounts in combination 2:
Combination Book balance
Connected amount between related parties 101,010,833.19
Account receivable with L/C 39,559,638.78
Total 140,570,471.97
(6) Account receivable with single minor amount but withdrawal single item bad debt provision at
period-end
140
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Accrual
Bad debt
Unit Book balance proportio Accrual reasons
amount
n
Shandong Wendeng Department Store
129,051.14 129,051.14 100%
Corporation
Jiangsu Zhenjiang GOME Electrical
123,474.37 123,474.37 100%
Appliance Co., Ltd.
Liuzhou Minyu Hardware Appliance
51,588.00 51,588.00 100% Cease business contact
Business
for 4 to 5 years; predicted
Nanjing Central Emporium Co., Ltd. 512,925.85 512,925.85 100% non-recoverable for
Zhejiang Yongle Appliance Co., Ltd. failure urging
95,090.82 95,090.82 100%
(Taizhou)
Gaomi Sanhe Appliance Market Co., Ltd. 610,458.57 610,458.57 100%
Cifeng Baixin Apparatus Co., Ltd. 271,114.97 271,114.97 100%
Yichun Jixing Appliance Town 218,509.36 218,509.36 100%
claim to insurance
MEKONG ELECTRONICS(LAOS)C 122,987.52 122,987.52 100% company for unrecovered
amount
Bad debt balance after
FOXMAN FUEGUINA S.A. 321,183.37 321,183.37 100% compensate from
insurance company
Hefei Greatwal Refrigeration Technology predicted
24,449.77 24,449.77 100% Non-recoverable for long
Co., Ltd. account age
Total 2,480,833.74 2,480,833.74
(7) Withdraw of account receivable verified in previous years: Nil
(8) Switch-back of bad debt provision for account receivable in this period:
Relationship
Unit with the Book balance Switch-back Account age
Company
Jiangsu Zhenjiang GOME Electrical Non-related
52,951.24 52,951.24 Over 5 years
Appliance Co., Ltd. party
Total 52,951.24 52,951.24
Note: The account receivables recover in this period are transfer to bad debt provision
correspondingly
(9) Account receivable verified in this period: Nil
(10)Arrears of the shareholders holding more than 5% (including 5%) shares with voting rights of the
Company:
Unit Period-end Year-begin
Sichuan Changhong Electric Co., Ltd. 25,257.14 529,937.38
141
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
(11) Top five amount of account receivable amounting as RMB 441,414,754.20, a 36.39% in total account
receivable at period-end.
(12) Details of account receivable from related parties found in 8(3)
(13)Balance of accounts receivable in foreign currencies
Period-end Year-begin
Currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
USD 39,594,723.03 6.1787 244,643,915.19 27,744,251.90 6.2855 174,386,495.32
EUR - 43,537.51 8.3176 362,127.59
AUD 954,855.70 5.7061 5,448,502.11 876,887.61 6.5363 5,731,600.49
Rupee 10,314,551.40 0.0628 647,753.83 138,128,300.00 0.0645 8,909,275.35
Total 250,740,171.13 189,389,498.75
(14) Account receivable derecognization: Nil
4. Account paid in advance
(1)Account paid in advance classify according to age structure
Period-end Year-begin
Item
Amount Ratio (%) Amount Ratio (%)
Within 1 year 153,400,056.57 95.56 41,294,960.49 83.57
1－2 years 3,120,722.71 1.94 4,247,999.64 8.60
2－3 years 179,250.94 0.11 3,328,517.45 6.73
Over 3 years 3,840,826.02 2.39 543,357.93 1.10
Total 160,540,856.24 100.00 49,414,835.51 100.00
Account paid in advance at period-end increase 111,126,000 Yuan over that of year-begin with 224.88% up,
mainly because prepared for the coming peak season, more procurement increased.
(3) Top five amount of account paid in advance at period-end amounting as RMB 122,268,035.78, a 76.16%
in total account paid in advance at period-end.
(4) The accounts paid in advance at the end of the period did not include any arrears of the
shareholders holding more than 5% (including 5%) shares with voting rights of the Company.
Unit Period-end Year-begin
Sichuan Changhong Electric Co., Ltd. 490,196.00 128,656.00
(5) Account paid in advance for related party found in 8(3)
(6) Balance of foreign currency for account paid in advance
142
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Period-end Year-begin
Currency Original Exchange RMB Original Exchange
RMB converted
currency rate converted currency rate
USD 712,656.33 6.1787 4,403,289.67 2,882,039.02 6.2855 18,115,056.26
EUR 121,346.00 8.0536 977,272.15 10,990.60 8.3176 91,415.41
JPY 11,400,000.00 0.0730 832,200.00
Total 5,380,561.82 19,038,671.67
5. Other account receivable
(1) Age structure of other account receivable
Period-end Year-begin
Bad debt
Book balance Book balance Bad debt provision
Item provision
Ratio Ratio Ratio Ratio
Amount Amount Amount Amount
(%) (%) (%) (%)
Within 1
245,344,020.56 96.25 201,925.64 4.68 24,391,508.02 69.00 304,701.08 7.51
year
1-2 years 4,401,594.01 1.73 522,120.17 12.09 5,119,464.43 14.48 481,452.17 11.86
2-3 years 807,916.16 0.32 128,424.51 2.97 1,957,599.05 5.54 128,424.51 3.16
3-4 years 1,043,325.74 0.41 336,299.87 7.79 1,381,314.87 3.91 769,838.37 18.96
4-5 years 846,205.41 0.33 705,140.42 16.33 33,756.63 0.10 12,390.43 0.31
Over 5
2,452,419.28 0.96 2,423,337.71 56.14 2,464,419.28 6.97 2,362,919.28 58.20
years
Total 254,895,481.16 100.00 4,317,248.32 100.00 35,348,062.28 100.00 4,059,725.84 100.00
Net value 250,578,232.84 31,288,336.44
Other account receivable at period-end increase 219,289,900 Yuan over that of year-begin with 700.87% up,
mainly because the subsidy of energy-saving and civil-benefit has not collected yet.
(2)Risk structure of other account receivable
Period-end Year-begin
Bad debt
Item Book balance Bad debt provision Book balance
provision
Ratio Ratio Ratio Ratio
Amount Amount Amount Amount
(%) (%) (%) (%)
Account receivable with
single significant amount and
withdrawal single item bad
debt provision
143
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Period-end Year-begin
Bad debt
Item Book balance Bad debt provision Book balance
provision
Ratio Ratio Ratio Ratio
Amount Amount Amount Amount
(%) (%) (%) (%)
Account receivable withdrawal bad debt provision by combination
combination 1 9,305,852.22 3.65 2,009,005.52 21.59 11,070,241.01 31.32 1,820,112.97 16.29
combination 2 243,281,386.14 95.44 22,038,208.40 62.34
Combination Subtotal 252,587,238.36 99.09 2,009,005.52 0.80 33,108,449.41 93.66 1,820,112.97 5.50
Account receivable with single
minor amount but withdrawal 2,308,242.80 0.91 2,308,242.80 100.00 2,239,612.87 6.34 2,239,612.87 100.00
singleitembad debtprovision
Total 254,895,481.16 100.00 4,317,248.32 1.69 35,348,062.28 100.00 4,059,725.84 11.49
Net value 250,578,232.84 31,288,336.44
(3) Significant other account receivable and withdrawal bad debt provision single: Nil
(4)Withdrawal bad debt provision by account age in combination 1:
Period-end Year-begin
Account
Bad debt Bad debt
age Amount Ratio (%) Amount Ratio (%)
provision provision
Within 1
3,894,812.71 5 194,740.64 5,950,321.52 5 297,516.08
year
1-2 years 3,480,801.16 15 522,120.17 3,209,681.14 15 481,452.17
2-3 years 366,927.16 35 128,424.51 366,927.16 35 128,424.51
3-4 years 611,454.31 55 336,299.87 1,396,454.31 55 768,049.87
4-5 years 829,576.97 85 705,140.42 14,576.97 85 12,390.43
Over 5
122,279.91 100 122,279.91 132,279.91 100 132,279.91
years
Total 9,305,852.22 2,009,005.52 11,070,241.01 1,820,112.97
Net value 7,296,846.70 9,250,128.04
(5)Accounts in combination 2:
Combination Book balance
Loans of employee’s pretty cash 10,749,577.44
Connected amount between related parties 1,092,378.70
Subsidy receivable of energy-saving and civil-benefit 231,439,430.00
144
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Total 243,281,386.14
(6) Other account receivable with single minor amount but withdrawal bad debt provision singly at
period-end
Accrual
Item Book balance Bad debt provision Reasons
proportion
Individual borrowings in Un-receivable due to
2,308,242.80 2,308,242.80 100%
previous years office leaving
(7) Other account receivable received in previous years which have been verified: Nil
(8) Switch-back of bad debt provision of other account receivable in the Period:
Item Book balance Switch-back Account age
Individual borrowings in 1,788.50 1,788.50 4-5 years
previous years 2,000.00 2,000.00 Over 5 years
(9) Other account receivables verified in this Period: Nil
(10) Other account receivables at the end of the year did not include the arrears of the shareholders
holding more than 5% (including 5%) of shares with voting rights of the Company: Nil
(11) Top five other account receivable
Relationshi Proportion in
Nature or
Item p with the Amount Account age total other
content
Company receivables
Subsidy of
Non-related
Hefei Finance Bureau 231,439,430.00 Within 1 year 90.80% energy-saving and
party
civil-benefit
Hefei Social Security Bureau Non-related Migrant workers
1,414,712.00 1-2 years 0.56%
(migrant workers security) party security
Alipay (China) Network Non-related
1,114,297.05 Within 1 year 0.44% Margin
Technology Co., Ltd. party
Guangzhou Hualing
Non-related
Refrigeration Equipment Co., 800,000.00 Within 1 year 0.31% Guarantee money
party
Ltd.
Zhan Xudong Employee 561,643.00 Within 1 year 0.22% Reserve fund
Total 235,330,082.05 92.33%
(12) Other account receivable of related parties, found in 8(3)
(13) Foreign currency balance for other account receivable
Foreign Period-end Year-begin
145
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
currency Original Exchange RMB Original Exchange RMB
currency rate converted currency rate converted
Rupee 56,681,825.22 0.0628 3,559,618.62 47,163,431.38 0.0645 3,042,041.32
(14) Other account receivable derecognition: Nil
6. Inventories
(1)Classification of inventories
Period-end Year-begin
Item Impairment Impairment
Bookbalance Book value Bookbalance Book value
provision provision
Rawmaterials 68,863,343.59 3,045,631.33 65,817,712.26 102,354,206.11 3,974,906.02 98,379,300.09
Stockcommodities 1,274,997,650.62 61,680,750.04 1,213,316,900.58 1,286,981,414.41 81,564,661.58 1,205,416,752.83
Low value
consumable 8,170,783.99 8,170,783.99 6,128,632.85 6,128,632.85
articles
Goodsin transit 105,460,375.62 5,467,279.11 99,993,096.51 137,531,663.25 5,881,607.42 131,650,055.83
Goods-in-process 16,936,089.93 1,097,614.46 15,838,475.47 17,772,866.27 1,097,614.46 16,675,251.81
Deferred expense
28,221,167.77 28,221,167.77 45,057,258.25 45,057,258.25
for moulds
Work in
714,889.55 714,889.55 714,889.55 714,889.55
process-outsourced
Total 1,503,364,301.07 72,006,164.49 1,431,358,136.58 1,596,540,930.69 93,233,679.03 1,503,307,251.66
(2) Inventory falling price reserves
Decrease during the Period
Increase during
Item Year-begin Switch-bac Period-end
the Period Write-off
k
Raw materials 3,974,906.02 59,180.16 988,454.85 3,045,631.33
Stock
81,564,661.58 1,598,987.68 21,482,899.22 61,680,750.04
commodities
Goods in transit 5,881,607.42 1,029,074.00 1,443,402.31 5,467,279.11
Goods in process 1,097,614.46 1,097,614.46
146
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Decrease during the Period
Increase during
Item Year-begin Switch-bac Period-end
the Period Write-off
k
Work in
process-outsource 714,889.55 714,889.55
d
Total 93,233,679.03 2,687,241.84 23,914,756.38 72,006,164.49
7. Long-term equity investment
(1) Classification of long-term equity investment
Item Period-end Year-begin
Long-term equity investment accounted in the cost method 9,100,000.00 10,420,000.00
Long-term equity investment accounted in the equity method 23,620,591.78 24,730,428.02
Long-term equity investment Total 32,720,591.78 35,150,428.02
Less: Provision for impairment of long-term equity investment
Value of long-term equity investment 32,720,591.78 35,150,428.02
(2) Long-term equity investment accounted in the cost method and the equity method
Holdi Voting Increase Decrease Cash
ng right Initial during during dividend
Invested unit propo propor Year-begin Period-end
rtion tion amount the the for the
(%) (%) Period Period Period
Accounting in the
cost method
1. Huishang Bank Co., 0.1
0.13 5,000,000.00 5,000,000.00 5,000,000.00 1,073,757.30
Ltd. 3
2. Jiujiang Meiling
Appliance Marketing 19 19 1,000,000.00 1,000,000.00 1,000,000.00
Co., Ltd.
3. Haozhou Meiling
Appliance Marketing 18 18 800,000.00 720,000.00 720,000.00 -
Co., Ltd.
4. Guangyuan Meiling
Appliance Marketing 20 20 800,000.00 800,000.00 800,000.00
Co., Ltd.
5. Guangxi Meiling
Home Appliances Co., 20 20 1,000,000.00 1,000,000.00 1,000,000.00
Ltd.
147
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Holdi Voting Increase Decrease Cash
ng right Initial during during dividend
Invested unit propo propor Year-begin Period-end
rtion tion amount the the for the
(%) (%) Period Period Period
6. Changzhou Meiling
Appliance Marketing 20 20 600,000.00 600,000.00 600,000.00 -
Co., Ltd.
7. Xuancheng Meiling
Appliance Marketing 16 16 800,000.00 800,000.00 800,000.00
Co., Ltd.
8. Buyang Meiling
Appliance Marketing 10 10 500,000.00 500,000.00 500,000.00
Co., Ltd.
Subtotal - - 10,500,000.00 10,420,000.00 1,320,000.00 9,100,000.00 1,073,757.30
Calculation by equity
method
1. Hefei Meiling Solar
Energy Technology 32.751 32.751 3,111,400.00 2,544,854.28 964,644.78 1,580,209.50
Co., Ltd.
2. Changhong Ruba
Electric Company(Private) 40 40 $1,600,000.00 9,520,163.21 160,000.00 9,680,163.21
Ltd.
3. Hefei Xingmei
Assets Management 48.28 48.28 12,094,369.48 12,665,410.53 211,404.54 516,596.00 12,360,219.07 516,596.00
Co.,Ltd.
Subtotal 25,325,585.48 24,730,428.02 371,404.54 1,481,240.78 23,620,591.78 516,596.00
Total 35,825,585.48 35,150,428.02 371,404.54 2,801,240.78 32,720,591.78 1,590,353.30
(3) Investment in associated companies
Voting
Holding Total Current
right Total assets at Total net assets period Net profit
Invested unit proporti liabilities at of the
proportio period-end at period-end Operation Period
on (%) period-end income
n (%)
1. Hefei Meiling
Solar Energy
32.751 32.751 67,366,678.06 62,547,173.60 4,819,504.46 11,830,987.05 -2,945,390.30
Technology Co.,
Ltd.
2. Changhong Ruba
Electric Company 40.00 40.00 47,341,478.63 26,833,900.16 20,507,578.47 39,000,453.81 400,000.00
(Private) Ltd.
3. Hefei Xingmei
Assets Management 48.28 48.28 29,640,336.58 1,874,278.57 27,766,058.01 1,894,101.00 437,871.87
Co.,Ltd.
148
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
(4) Depreciation reserves for long-term equity investment: Nil
(5) Restriction of fund transfer ability to investment enterprise: Nil
8. Investment properties
(1) Investment properties measured at costs
Increase during Decrease during
Item Year-begin Period-end
the Period the Period
Original value 24,058,864.21 24,058,864.21
Houses and buildings 23,142,172.83 23,142,172.83
Land use rights 916,691.38 916,691.38
Accumulated depreciation and
7,548,904.37 376,399.95 7,925,304.32
accumulated amortization
Houses and buildings 7,247,580.56 360,413.05 7,607,993.61
Land use rights 301,323.81 15,986.90 317,310.71
Provision for impairment -
Houses and buildings
Land use rights
Book value 16,509,959.84 16,133,559.89
Houses and buildings 15,894,592.27 15,534,179.22
Land use rights 615,367.57 599,380.67
(2) Investment real estate measured by fair value: Nil
(3) Particular about mortgage of investment property
Item Land certificate serials Area (M2) Net book value Mortgage bank
Nantou Village, Nantou Foshan Branch of China
YFDZZ No.C1628036 5,153.32 2,543,553.57
Town, Zhongshan City Merchants Bank
Nantou Village, Nantou Zhong Fuguoyong No. (2003) Foshan Branch of China
845.00 599,380.67
Town, Zhongshan City 020642 Merchants Bank
Total 5,998.32 3,142,934.24
9. Fixed assets
(1) Classification of fixed assets by item
Decrease during the
Item Year-begin Increase during the Period Period-end
Period
Original value 1,969,090,794.29 49,410,529.50 52,642,985.49 1,965,858,338.30
Houses and
802,761,805.37 8,687,710.85 277,657.00 811,171,859.22
buildings
149
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Decrease during the
Item Year-begin Increase during the Period Period-end
Period
Mechanical
1,044,871,176.60 34,986,768.78 47,033,015.65 1,032,824,929.73
equipment
Transport
29,142,008.79 339,165.04 4,777,711.39 24,703,462.44
equipment
Other 92,315,803.53 5,396,884.83 554,601.45 97,158,086.91
Accumulated Newly added in Withdrawal in
708,548,967.83 36,687,322.93 735,782,600.27
depreciation current period current period
Houses and
99,371,609.27 12,843,583.77 2,515,070.95 109,700,122.09
buildings
Mechanical
551,643,798.68 45,017,734.17 30,621,189.44 566,040,343.41
equipment
Transport
18,841,238.94 1,500,720.45 3,449,722.03 16,892,237.36
equipment
Other 38,692,320.94 4,558,916.98 101,340.51 43,149,897.41
Provision for
16,651,875.65 655,855.06 15,996,020.59
impairment
Houses and
1,240,639.77 1,240,639.77
buildings
Mechanical
11,726,972.91 655,855.06 11,071,117.85
equipment
Transport
593,280.41 593,280.41
equipment
Other 3,090,982.56 3,090,982.56
Book value 1,243,889,950.81 1,214,079,717.44
Houses and
702,149,556.33 700,231,097.36
buildings
Mechanical
481,500,405.01 455,713,468.47
equipment
Transport
9,707,489.44 7,217,944.67
equipment
Other 50,532,500.03 50,917,206.94
(2) Fixed assts temporary idle
Accumulated Depreciation
Item Original book value Net book value
depreciation provision
Houses and buildings 3,560,856.00 895,271.20 2,665,584.80
150
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Mechanical
9,205,928.30 4,975,616.33 3,590,517.83 639,794.14
equipment
Transport equipment 212,559.00 173,840.98 11,392.22 27,325.80
Other 729,105.36 486,138.04 210,002.95 32,964.37
Total 13,708,448.66 6,530,866.55 3,811,913.00 3,365,669.11
(3) Fixed assets leased through operating lease: Nil
(4) Fixed assets leased through operating lease:
Accumulated Depreciation
Item Original book value Net book value
depreciation provision
Mechanical
1,307,440.60 872,315.95 435,124.65
equipment
(5) Fixed assets used for mortgage
Name Property certificate serials Original value Net value Bank for mortgage
Foshan Branch of China
Office building YFDZZ No.C1628036 1,841,317.16 756,356.49
Merchants Bank
Foshan Branch of China
#2 Office building YFDZZ No.C1628036 4,685,446.45 1,924,637.35
Merchants Bank
Office Foshan Branch of China
YFDZZ No.C1628036 1,309,613.63 644,423.43
building(decoration) Merchants Bank
Office Foshan Branch of China
YFDZZ No.C1628036 3,332,464.76 1,639,810.70
building(decoration) Merchants Bank
2/F of #1plant Foshan Branch of China
YFDZZ No.C1628035 4,461,822.45 1,702,625.87
2/F of #2plant Merchants Bank
Foshan Branch of China
1/F of #1plant YFDZZ No.C1628035 2,230,911.23 851,312.78
Merchants Bank
Foshan Branch of China
1/F of #2plant YFDZZ No.C1628035 2,230,911.23 851,312.78
Merchants Bank
Foshan Branch of China
3# plant YFDZZ No.C1628037 10,510,553.63 4,336,530.74
Merchants Bank
Foshan Branch of China
2/F of #3plant YFDZZ No.C1628037 961,963.73 396,894.91
Merchants Bank
Foshan Branch of China
Warehouse YFDZZ No.C1628037 1,897,142.05 782,738.49
Merchants Bank
Foshan Branch of China
2/F of #4plant YFDZZ No.C1652820 1,212,957.95 500,452.17
Merchants Bank
151
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Name Property certificate serials Original value Net value Bank for mortgage
YFDZZ No.C165275
Dormitory of 1#, 2#, Zhongshan Nantou
YFDZZ No.C165282 4,910,007.80 2,016,880.19
3# Sub-branch of ICBC
YFDZZ No.C1628038
Zhongshan Nantou
4# dormitory building YFDZZ No.C1652754 1,519,062.18 623,983.96
Sub-branch of ICBC
Zhongshan Nantou
Canteen YFDZZ No.C1652823 1,178,632.00 486,289.62
Sub-branch of ICBC
Total 42,282,806.25 17,514,249.48
(6) Fixed assts without property certificate (House and buildings)
Assets Original value
7#Freezer Plant 35,579,365.82
8#Freezer Plant 32,656,840.25
9#Freezer Plant 20,334,625.38
3#Big refrigerator Plant 64,791,535.83
3#Big refrigerator finished-goods Plant 46,837,081.75
Canteen 2,415,806.73
1# dormitory building 4,913,840.64
2# dormitory building 4,844,585.04
1# dormitory building for cadremen 7,274,044.55
2# dormitory building for cadremen 7,272,362.29
3# makeshift shelter 5,689,907.18
4# makeshift shelter 6,651,069.97
5# makeshift shelter 5,140,247.60
6# building for cadremen 8,936,534.60
7# building for cadremen 8,221,302.20
8# makeshift shelter 5,178,824.74
Total 266,737,974.57
For individual acceptance procedure not done for the above house and buildings, no property certificate has
been done temporary.
(7) Fixed assets ready for sale at period-end: Nil
10. Construction in progress
(1) Details of construction in progress
152
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Period-end Year-begin
Impairmen Book value Impairme Book value
Item
Book balance t provision Book balance nt
provision
Manufacture base
project of the Athena 13,825,553.01 13,825,553.01 9,028,293.55 9,028,293.55
luxury refrigerator
construction of the
project of ice cube 13,757,973.81 13,757,973.81 12,770,820.99 12,770,820.99
capacity expansion
Phase II of Changhong
3,703,271.61 3,703,271.61 4,481,244.26 4,481,244.26
Meiling industry park
Capacity expansion
project of energy-saving
472,495.71 472,495.71 473,294.86 473,294.86
and environmental
refrigerator
Capacity expansion of
energy-saving and
environmental 10,512,667.75 10,512,667.75 6,550,575.05 6,550,575.05
refrigerator with annual
output of 2 millions sets
Construction project of
Phase II for matching
6,468,371.07 6,468,371.07 14,800,996.61 14,800,996.61
life district of Meiling
Hi-Tech Industrial Park
Equipments pending for
4,722,558.33 4,722,558.33 5,130,708.59 5,130,708.59
installation
Removal and reconstruct of
high-pressure foam machines
2,073,315.04 2,073,315.04
and security system and side
panel line
Other minor projects etc. 13,987,302.85 13,987,302.85 17,469,180.42 17,469,180.42
Total 69,523,509.18 69,523,509.18 70,705,114.33 70,705,114.33
(2) Changes in significant construction in progress
Decrease during the Period
Increase
Projects Year-begin during the Transfer to Other Period-end
Period fixed assets decrease
153
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Decrease during the Period
Increase
Projects Year-begin during the Transfer to Other Period-end
Period fixed assets decrease
Manufacture base
project of the Athena 9,028,293.55 7,069,766.17 2,272,506.71 13,825,553.01
luxury refrigerator a)
project of ice cube
12,770,820.99 987,152.82 13,757,973.81
capacity expansion b)
(Continued)
including: Interest
Proportion of Accumulated
interest capitalizati
project amount of Capital
Projects Budget Progress capitalized on rate of
investment in interest source
amount of the the year
budget (%) capitalization
year (%)
Manufacture base
793millio
project of the Athena 65.44% 90.00% Mainly raised
n Yuan
luxury refrigerator
project of ice cube 375millio
74.68% 96.50% Mainly raised
capacity expansion n Yuan
a) Manufacture base of Athena luxury refrigerator constructed expected to invest RMB 793,303,800. Raised fund
RMB 730 million plans to invested, and rest of the capital will collect by the company. Production plant,
equipment and finished-good warehouse has transfer to fixed assets and put into usage dated 30 November 2012.
As of the Period-end, part of the equipment still in installation and debugging, settlement for acceptance not done
yet.
b) The freezer capacity expansion project plans to invest RMB 375.1778 million in total. Raised fund RMB 300
million will invest and rest of the capital will collect by the company. Phase I has completed and put into
production in January 2011, 1st stage of phase II was completed and put into production in March 2012. As of the
Period-end, part of the equipment for phase II still in installation and debugging, settlement for acceptance not
done yet.
(3) Depreciation reserves for construction in process: Nil
11. Intangible assets
(1) Items of intangible assets are set out as follows:
Increase during the Decrease during the
Item Year-begin Period-end
Period Period
Original price of
979,379,867.09 8,880,016.19 988,259,883.28
intangible assets
Land use right 638,981,493.04 638,981,493.04
154
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Increase during the Decrease during the
Item Year-begin Period-end
Period Period
Trademark
283,292,439.34 283,292,439.34
exclusive right
patent technology 2,066,100.00 2,066,100.00
Non-patent
55,039,834.71 8,880,016.19 63,919,850.90
technology
Accumulated
350,197,523.10 13,271,165.08 363,468,688.18
amortization
Land use right 76,535,235.63 6,673,544.24 83,208,779.87
Trademark
243,799,580.97 2,455,785.00 246,255,365.97
exclusive right
patent technology 1,153,572.50 1,153,572.50
Non-patent
28,709,134.00 4,141,835.84 32,850,969.84
technology
Provision for
912,527.50 912,527.50
impairment
Land use right -
Trademark
-
exclusive right
patent technology 912,527.50 912,527.50
Non-patent
-
technology
Book value 628,269,816.49 623,878,667.60
Land use right 562,446,257.41 555,772,713.17
Trademark
39,492,858.37 37,037,073.37
exclusive right
patent technology -
Non-patent
26,330,700.71 31,068,881.06
technology
(2) As of this Period-end, mortgage of intangible assets is as follows:
Details of
Property certificate serials Area(M2) Net book value Note
intangible assets
ZFGY(2003)020639 14,834.30
ZFGY(2003)020640 5,375.90 Foshan Ronggui
Office building,
Sub-branch of
plant and ZFGY(2003)020641 16,198.20 6,105,736.56
China Merchants
dormitory land
ZFGY(2003)020642 13,239.10 Bank
ZFGY(2003)020643 15,381.40
155
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Details of
Property certificate serials Area(M2) Net book value Note
intangible assets
Zhongshan
Nantou
ZFGY(2003)020644 14,451.10 1,356,852.25
Sub-branch of
ICBC
Office of Anhui
Branch of
Lands HJKGY(2007)No.: 061 477,550.00 292,589,073.71
Export-Import
Bank of China
Industrial Park of
Hefei Hi-Tech
Hefei
Industry HGYJC Zi No.: 0121 号 27,103.60 22,277,420.64
FinanceBureau
Development
District
Total 584,133.60 322,329,083.16
(3) Upon consolidation of Meiling Group by the Company under business combination not under the common
control in 2010, the Company successively started legal procedures to clear the trademark license agreements
entered into by Meiling Group previously, in order to recover the exclusive trademark right. In 2012, as mediated
by the high people’s court of Anhui province, Meiling Group reached and signed, on a willing basis, mediation
agreement with Hefei Meiling Home Appliances Co., Ltd. and the court also issued civil mediation letter
(WMSZZDi (2012) No.00020). For details, please refer to the Board announcement dated 29 December 2012
disclosed by the Company in relation to the progress of the case that subsidiary Hefei Meiling Group Holding Co.,
Ltd. requires Hefei Meiling Home Appliances Co., Ltd. to terminate trademark use license agreement. Other
arbitration issues regarding to recovery of trademark use right: the case that Meiling Group requires Hefei Meiling
Telecommunications Technology Co., Ltd. and Hefei Meiling Cabinet Appliances Co., Ltd. to terminate the
previously signed trademark use right license agreement with relevant compensations has applied for arbitration
from Arbitration Committee of Hefei. Currently, the court session has been opened for this arbitration, pending
for verdict by Arbitration Committee of Hefei
12. Development expense
Decrease during the Period
Increase during Record into
Item Year-begin Confirm as Period-end
the Period current gains
intangible assets
and losses
Technology
development for 31,746,326.41 10,232,407.20 2,090,068.99 8,880,016.19 31,008,648.43
Air-conditioner
13. Goodwill
156
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Increase Decrease
Depreciation
Invested unit Year-begin during the during the Period-end
reserves
Period Period
Hefei Meiling Group Holding Co.,
10,922,803.73 10,922,803.73 5,392,961.64
Ltd.
Goodwill generated from merger of Meiling Group classified according to assts group:
Impairment
Assets group Items Apportion Goodwill Net value
provision
Equator Appliance
Assets group A 846,742.35 846,742.35
Equator Apparatus
Precision tube
Assets group B 2,706,625.42 2,706,625.42
Non-ferrous metal
Package products
Environment-friendl
Assets group C 1,839,593.87 1,839,593.87
y
Package
Trademark
Assets group D 5,529,842.09 5,529,842.09
exclusive right
Total 10,922,803.73 5,392,961.64 5,529,842.09
14. Deferred income tax assets
(1)Recognized deferred income tax assets
Item Period-end Year-begin
Assets impairment 11,197,319.26 12,000,833.77
Accrual liability 53,923,200.46 54,259,629.22
Dismiss welfare 7,168,522.97 7,638,868.63
Deductible losses 330,874.31
Accrual expense 3,601,767.40 2,303,288.96
Total 75,890,810.09 76,533,494.89
(2)Unrecognized deferred income tax assets
Item Period-end Year-begin
Deductible temporary difference 119,347,478.72 168,288,165.87
Deductible loss 201,452,440.85 164,624,645.62
Total 320,799,919.56 332,912,811.49
It is uncertainty for gaining sufficient taxable amount in future for part of subsidiaries, not confirming
deferred income tax assets.
157
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
(3) Deductible difference
Item Amount
Account receivables Bad debt provision 32,019,026.23
Other account receivable Bad debt provision 3,823,405.07
Depreciation reserve for inventory 26,496,682.96
Impairment provision for fixed assets 8,395,932.66
Projected liability 359,488,003.05
Dismiss welfare 47,790,153.12
Expenses withdrawal in advance 14,407,069.63
Subtotal 492,420,272.72
15. Impairment provision for assets
Decrease during the Period
Increase during
Item Year-begin Other Period-end
the Period Switch-back
transfer-out
Bad debt provision 47,295,608.10 19,381,929.57 56,739.74 66,620,797.93
Inventory falling price
93,233,679.03 2,687,241.84 23,914,756.38 72,006,164.49
reserves
Depreciation reserve for
16,651,875.65 655,855.06 15,996,020.59
fixed asset
Depreciation reserve for
912,527.50 912,527.50
intangible asset
Depreciation reserve for
5,392,961.64 5,392,961.64
goodwill
Total 163,486,651.92 22,069,171.41 56,739.74 24,570,611.44 160,928,472.15
16. Short-term borrowings
Type of loans Period-end Year-begin
Loan in pledge 459,268,050.00 45,456,805.14
Total 459,268,050.00 45,456,805.14
Short-term borrowings at period-end increase 413,811,200 Yuan over that of year-begin with 910.34% up, mainly
because the short-term borrowings from parent company increased.
The Company increased borrowings this Period as follows:
(1)the Company entered into invoice financing borrowing agreement with Hefei Shouchun Luqiao Branch of
Bank of Communications, with borrowing term from 12 April 2013 to 9 October 2013; RMB 450,000,000.00 was
borrowed in the Period.
(2)the subsidiary Zhongshan Changhong entered into account receivables pledge borrowing agreement with
158
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Foshan Ronggui Branch of China Merchants Bank, with borrowing term being 6 months from 26 April 2013 to 25
October 2013, amount of US$ 1.5 million, RMB 9,268,050.00 in total.
17. Notes payable
Type Period-end Year-begin
Bank acceptance bill 1,324,879,913.25 1,268,157,043.71
Commercial acceptance bill 33,913,513.53
Total 1,358,793,426.78 1,268,157,043.71
18. Account payable
(1)Balance of account payable
Item Period-end Year-begin
Total 2,339,285,831.36 1,462,293,958.34
Including: over 1 year * 65,873,253.53 28,355,592.38
Account payable at period-end increase 876,991,900 Yuan over that of year-begin with 59.97% up, mainly
because prepared for the coming peak season, more procurement increased.
(2)Accounts payable to shareholders holding 5% or above voting shares of the Company
Unit Period-end Year-begin
Sichuan Changhong Electric Co., Ltd. 23,575,283.37 29,061,639.39
(3)Account payable denominated in foreign currency
Period-end Year-begin
Currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
USD 1,390,475.15 6.1787 8,591,328.81 59,400.00 6.2855 373,358.70
EUR 59,400.00 8.0536 478,383.84 17,857.47 8.3176 148,531.29
Rupee 425,876,036.71 0.0628 26,745,015.10 216,138,296.12 0.0645 13,940,920.10
Total 35,814,727.75 14,462,810.09
(4) Account payable for related parties found in 8(3)
19. Account received in advance
(1) Balance of account received in advance
Item Period-end Year-begin
159
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Total 387,915,609.50 459,974,402.43
Including: over 1 year 54,835,434.55 53,368,282.20
(2)Accounts received in advance from shareholders holding 5% or above voting shares of the
Company
Unit Period-end Year-begin
Sichuan Changhong Electric Co., Ltd. 21,580,163.77 354,322.89
(3)Account received in advance denominated in foreign currency
Period-end Year-begin
Currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
EUR 75,132.07 8.0536 605,083.64 77,985.66 8.3176 648,653.53
USD 6,103,396.50 6.1787 37,711,055.95 4,085,312.16 6.2855 25,678,229.58
Rupee 8,901,850.00 0.0628 559,036.18 635,090.85 0.0645 40,963.36
Total 38,875,175.77 26,367,846.47
(4) Account receivable from related parties found in Note 8(3)
20. Salary payable
Increase Decrease
Item Year-begin during the during the Period-end
Period Period
Salary, bonus, laboring etc. 62,199,633.31 284,518,533.02 328,586,661.79 18,131,504.54
Welfare for workers and staff 100,262.75 14,288,716.84 14,388,979.59 -
Social insurance 19,413,533.15 42,834,723.75 56,065,785.68 6,182,471.22
Including: Medical insurance 5,789,949.75 10,554,386.40 13,798,989.46 2,545,346.69
Basic endowment
11,476,130.30 27,725,071.80 36,749,504.25 2,451,697.85
insurance
Unemployment insurance 1,274,809.97 2,751,112.69 3,169,829.52 856,093.14
Work injury insurance 447,012.25 1,092,182.59 1,360,055.28 179,139.56
Maternity insurance 425,630.88 711,970.27 987,407.17 150,193.98
Housing accumulation fund 3,377,814.22 17,569,777.71 18,000,833.88 2,946,758.05
Labor union expenditure and
1,308,467.64 534,755.96 688,326.16 1,154,897.44
personnel education expense
Non-monetary welfare - - -
Dismiss welfare* 50,925,790.82 365,196.95 3,500,834.65 47,790,153.12
Other
160
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Increase Decrease
Item Year-begin during the during the Period-end
Period Period
Including: shares payment settled
with cash
Total 137,325,501.89 360,111,704.23 421,231,421.75 76,205,784.37
Salary payable at period-end decrease 61,119,700 Yuan over that of year-begin with 44.51% down, mainly
because the salary for December which was accrual for year of 2012 and annual bonus were paid in the Period.
21. Tax payable
Item Period-end Year-begin
Value-added tax 46,428,040.41 47,501,577.27
Business tax 236,025.36 320,352.47
Enterprise income tax 31,397,341.06 28,412,968.98
Individual income tax 1,649,701.09 1,876,738.50
Urban maintenance and construction tax 3,078,128.55 7,636,247.09
House property tax 421,487.86 2,604,208.55
Land-use right tax 298,833.69 294,573.54
Educational surtax 2,210,588.38 5,599,587.15
Stamp tax 455,283.76 623,259.66
Construction fund of Water Conservancy Projects 558,279.18 1,063,727.28
Treatment fund for abandon electric & electronics products 19,105,975.00 13,458,088.00
Other 1,656,788.93 1,715,344.67
Total 107,496,473.27 111,106,673.16
22. Dividends payable
Reasons of unpaid over
Unit Period-end Year-begin
one year
Entrust Hefei Office of Provincial
169,067.25 169,067.25
ABC
Bank of Communications, Hefei
153,697.50 153,697.50
Branch
City Insurance company 93,926.25 93,926.25
Hefei Technology Bank 92,088.75 92,088.75
Other piecemeal units 1,011,481.52 1,042,822.55
Total 1,520,261.27 1,551,602.30
161
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
23. Other payable
(1) Balance of other payable
Item Period-end Year-begin
Total 1,073,340,052.52 826,111,040.95
Including: over 1 year * 47,235,845.95 41,142,784.55
* Amount with over one year age refers to margins payable to suppliers.
(2)Other payable to shareholders holding 5% or above voting shares of the Company
Unit Period-end Year-begin
Sichuan Changhong Electric Co., Ltd. 13,399,630.70 5,756,532.91
(3)Other account payable denominated in foreign currency
Period-end Year-begin
Curre
ncy Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
Rupee 11,493,285.40 0.0628 721,778.32 2,740,183.88 0.0645 176,741.86
Total 721,778.32 176,741.86
(4) Other payable to related party found more in “8(3)”
24. Non-current liability due within one year
Item Period-end Year-begin
Deferred income transfer to gains and losses within one year 8,709,083.76 7,777,304.72
Total 8,709,083.76 7,777,304.72
25. Long-term loans
(1)Classification of long-term loans
Type Period-end Year-begin
Loan in mortgage 125,120,000.00 125,760,000.00
Loan in credit 5,354,600.00 5,354,600.00
Total 130,474,600.00 131,114,600.00
(2) Long-term loans at period –end
Borrowing Returning Interest
Loan unit Currency Period-end Year-begin
day day rate
Ministry of Finance of
Note1
2006-11-09 2021-11-08 RMB 3.55% 5,120,000.00 5,760,000.00
Hefei
Ministry of Finance of
Note2
2002-11-21 2017-11-20 RMB 3.30% 3,254,600.00 3,254,600.00
Hefei
Ministry of Finance of
Note3
2004-12-10 2019-12-10 RMB 3.30% 2,100,000.00 2,100,000.00
Hefei
162
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Anhui Branch of
2012-07-24 2014-07-24 RMB 4.20% 120,000,000.00 120,000,000.00
Note 4
Export-Import Bank
Total 130,474,600.00 131,114,600.00
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 mortgage 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 (9 November 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 principal RMB640,000.00 and interest RMB 135,224.78
were paid in this Period.
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 promised 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
interest paid in this Period was RMB59,125.22
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 interest paid in this Period was RMB 38,150.00.
Note 4: on 24 July 2012, the Company signed real estate pledge contract with the Export-Import Bank of China,
pursuant to which, the Company obtained loan of RMB120 million from the bank with land of 477,550 square
meters (note 8) as the pledge, and the borrowing term was 2 years. On 24 July 2012, the Company signed
borrowing contract (high-tech product export seller credit) with the Export-Import Bank of China, with the
borrowing term being 24 months, interest rate being the export seller credit rate prescribed by People’s Bank of
China which was determined for each quarter. The annual interest rate of the contract for the first quarter was the
export seller credit rate as of the initial lending date. As to the annual interest rate applicable for each quarter, it
shall be executed under the loan rate prescribed by People’s Bank of China at that time. The borrowing shall be
repaid with principal within the borrowing term as provided in the borrowing contract with the original currency
under repayment schedule.
163
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
26. Accrued liability
Increase during Carry-forward
Item Year-begin Period-end
the Period during the period
Product quality guarantee 11,035,757.79 11,035,757.79
Guarantee fund for quality
350,120,523.59 685,902.00 2,354,180.33 348,452,245.26
service
Total 361,156,281.38 685,902.00 2,354,180.33 359,488,003.05
Product quality deposit is the maintenance expense provided by the Company under the national policy, while
quality service special guarantee capital is the warranty costs provided for product quality in addition to such
policy.
27. Other non-current liabilities
Item Period-end Year-begin
Deferred income 96,487,904.03 92,645,296.80
(1)The Company received special subsidy of RMB5, 872,500.00 in respect of freezer capacity expansion of
Meiling Hi-Tech Industrial Park this Period. According to the depreciation limit of the equipments of freezer
capacity expansion project, deferred income of RMB 367,031.00 was carried forward to non-operating revenue
this Period. RMB 734,062.00 which will be carried forward to profit and loss next year has been reclassified as
non-current liabilities due within one year.
(2) Government subsidy:
Book balance at period-end Amou
Amount
Amount listed in nt Reaso
Amount listed in reckon into
Type of subsidy other return ns for
other current current
non-current this return
liability gain/loss
liability year
Subsidy for promotion project of
63,600.00
conditioner for energy-saving rooms
Demolition compensation of Hefei
53,316,546.22 2,654,171.12 1,281,150.46
Meiling
Specific fund for technology reform 21,415,625.00 3,337,500.00 1,668,750.00
Demolition compensation of Jiangxi
13,710,232.87 1,983,350.64 991,675.21
Meiling
Adaptability improvement of new
refrigerant production subsidy for R290 2,966,215.93
project /D52/13-R29
Adaptability improvement of new
refrigerant production subsidy for R410A 244,277.01
project /D52/13-R410A
Subsidy for freezer capacity expansion
4,771,407.00 734,062.00 367,031.00
of Meiling Hi-Tech Industrial Park
Total 96,487,904.03 8,709,083.76 4,308,606.67
164
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
28. Share capital
Year-begin Change during thePeriod Period-end
Shares
Shareholders / type New transferred
Bonus Ratio
Amount Ratio(%) shares from Other Subtotal Amount
share (%)
issued capital
reserve
Shares with
conditional 66,468,273 8.70 -1,138,205 -1,138,205 65,330,068 8.55
subscription
State-owned shares
State-owned legal
57,030,632 7.46 -721,396 -721,396 56,309,236 7.37
person shares
Other domestic shares 9,437,641 1.24 -416,809 -416,809 9,020,832 1.18
Including: Domestic
9,209,254 1.21 -312,607 -312,607 8,896,647 1.16
legal person shares
Domestic
228,387 0.03 -104,202 -104,202 124,185 0.02
natural person shares
Foreign shares
Including: Foreign legal
person shares
Foreign natural
person shares
Executives’ shares
Shares with no restricted
697,270,932 91.30 1,138,205 1,138,205 698,409,137 91.45
condition
RMB common shares 534,406,932 69.98 1,138,205 1,138,205 535,545,137 70.13
Domestically listed
162,864,000 21.32 162,864,000 21.32
foreign shares
Overseas listed
foreign shares
Other
Total shares 763,739,205 100.00 763,739,205 100.00
On 5 February 2013, the 6th batch of circulating shares with restricted condition after the implementation of equity
division reform were released from restriction and listed for trading. Four shareholders were released in total with
1,138,205shares released, representing 0.149% of the total share capital of the Company.
29. Capital reserve
Increase during Decrease during
Item Year-begin Period-end
the Period the Period
Share premium 1,434,501,832.59 234,942.68 1,434,266,889.91
Other capital reserve 48,080,558.82 48,080,558.82
Total 1,482,582,391.41 234,942.68 1,482,347,448.73
30. Surplus reserves
165
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Increase during Decrease during
Item Year-begin Period-end
the Period the Period
Statutory surplus reserve 209,393,055.00
Discretionary surplus
115,607,702.16
reserve
Total 325,000,757.16
31. Retained profit
Withdraw or
Item Amount
distribution ratio
Amount at the period-end of last year 385,744,261.05
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 385,744,261.05
Add: Current period Net profit attributable to shareholders of
135,691,575.62
parent company
Deficit coverage of surplus reserve
Less: withdraw of statutory surplus reserve
withdraw of discretional surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares
Dividend of ordinary shares transferred to share capital
Amount at the period-end of this year 521,435,836.67 -
32. Minority shareholder’s equity
Minority shareholding
Subsidiary Period-end Year-begin
ratio at period-end
Zhongke Meiling Cryogenic Technology
30% 23,760,394.44 22,832,709.71
Co., Ltd.
Hefei Meiling Appliance Marketing Co.,
Found in 5.”Sybsidiaries” -10,114,657.40 -1,463,447.04
Ltd.
Zhongshan Changhong Appliance Co.,
Found in 5.”Sybsidiaries” 4,816,325.15 4,313,006.67
Ltd.
Total 18,462,062.19 25,682,269.34
166
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
33. Opration income, operation cost
(1)Operation income and operation cost
Amount at same period of
Item Current amount
last year
Main business revenue 5,702,567,111.50 5,137,875,700.69
Other business revenue 248,877,463.82 174,734,822.43
Total 5,951,444,575.32 5,312,610,523.12
Main business cost 4,296,706,938.50 3,886,517,715.35
Other business revenue 229,647,164.73 157,459,482.91
Total 4,526,354,103.23 4,043,977,198.26
2) Main business- by products
Current amount Amount at same period of last year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator and
freezer 3,698,006,881.56 2,769,769,582.32 3,524,512,428.36 2,608,915,664.41
Air-condition 1,864,585,839.05 1,416,148,573.24 1,480,247,536.02 1,159,935,393.63
Washing machine 69,580,523.51 59,340,139.19 68,173,774.95 54,339,892.93
Other 70,393,867.38 51,448,643.75 64,941,961.36 63,326,764.38
Total 5,702,567,111.50 4,296,706,938.50 5,137,875,700.69 3,886,517,715.35
(3) Main business- by sales region
Current amount Amount at same period of last year
Region
Operation income Operation cost Operation income Operation cost
Domestic 4,868,852,134.59 3,521,005,994.95 4,522,151,494.79 3,289,722,049.67
Overseas 833,714,976.91 775,700,943.55 615,724,205.90 596,795,665.68
Total 5,702,567,111.50 4,296,706,938.50 5,137,875,700.69 3,886,517,715.35
(4) Top five clients have income in sales of 1,635,825,060.07 Yuan in total, a 27.48 percent in total
operation income.
34. Operation tax and surcharge
Amount at same period of
Item Current amount
last year
City construction tax 15,644,928.65 16,862,415.25
Extra charge for education 11,330,468.22 12,089,201.44
Treatment fund for abandon electrics & electronics 30,888,833.00
Operation tax 477,497.84 14,137,344.39
167
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Other 201,607.13 83,998.68
Total 58,543,334.84 43,172,959.76
Current operation tax and surcharge increase 15,370,400 Yuan over same period of last year with 35.60% up,
mainly because the accrual increased in the Period and disposal fund for scrap electronic products paid in the
Period while no such charge at last year.
35. Sales expense
Amount at same
Item Current amount
period of last year
Market support 436,564,359.07 339,055,305.97
Transport expenses 191,868,113.44 199,129,238.65
National three guarantees expense 54,245,396.05 46,931,957.86
Expenses accrual in advance of 10-year quality warranty
685,902.00 36,632,756.61
service for appliances to the countryside
Salary and surcharge and social insurance 112,209,267.28 94,212,491.37
Advertisement expenses 29,400,948.05 30,090,962.25
Air conditioner installation fee 108,349,023.43 71,445,465.30
Operation activities expenses 8,753,131.66 7,552,947.70
Exhibition expenses 15,844,172.74 19,644,900.61
Storage lease expenses 43,769,365.52 38,272,491.42
Travelling expenses 14,063,332.39 12,001,834.82
Meeting organization 7,427,498.05 4,619,066.14
House-lease expenses 2,610,063.78 3,352,543.45
Communication expenses 2,763,161.84 3,066,357.33
Vehicle consumption 3,266,491.31 2,397,756.34
Office expenses 967,528.61 795,599.73
Consumption of machinery materials 8,031.10 9,388.91
Depreciation expenses 1,687,634.44 1,807,933.25
Other expenses 14,723,261.75 26,838,501.26
Total 1,049,206,682.51 937,857,498.97
36. Administration expense
168
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same period
Item Current amount
of last year
Salary and surcharge 61,832,994.85 63,720,572.23
Amortized intangible assets 13,287,151.98 11,766,359.78
Social insurance and housing reserves 14,288,436.62 13,006,755.63
Tax 12,376,103.28 10,457,725.59
Trial fee of R&D 8,806,308.66 9,417,303.98
Depreciation 10,339,403.84 7,347,161.52
Utilities 4,546,969.58 3,509,287.66
Inspection and authentication fee 1,885,262.87 2,056,761.15
Domestic travelling fee 4,648,335.81 3,650,680.99
Use charge of software 548,826.15 400,752.79
Business activities 4,269,693.32 4,255,274.65
Assets leasing 694,868.49 674,742.69
Property insurance 822,430.56 411,832.29
Funds of Board 443,179.72 556,666.22
Office charge 2,677,841.70 2,793,770.21
Other 28,486,354.11 24,885,894.38
Total 169,954,161.54 158,911,541.76
37. Financial expense
Amount at same period
Item Current amount
of last year
Interest expenditure 9,649,962.36 4,219,580.96
Less: Interest income 22,460,895.75 11,932,542.50
Add: exchange loss -3,234,754.22 -10,711,606.88
Add: procedure charge expenditure 3,142,405.62 2,325,279.14
Add: discount expenditure -21,313,542.04 -17,447,220.62
Add: other expenditure -2,024,101.86 -1,040,468.55
Total -36,240,925.89 -34,586,978.46
38. Assets impairment loss
Amount at same period
Item Current amount
of last year
Bad debt losses 19,325,189.83 17,856,046.92
169
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same period
Item Current amount
of last year
Provision for falling price of inventory 2,687,241.84 19,263,644.39
Total 22,012,431.67 37,119,691.31
Current assets impairment loss decreases 15,107,300 Yuan over same period of last year with 40.70% down,
mainly because inventory turnover ratio growth in the Period and the inventory with long period in stock
decreased.
39. Investment income
(1) Sources of investment income
Amount at same period
Item Current amount
of last year
Long-term equity investment income by cost method 1,153,869.48 1,073,757.30
Long-term equity investment income by equity method -593,240.24 -812,793.39
Investment income from disposal of long-term equity investment 190,660.44
Investment income from period of holding financial assets
available for sale
Investment income from disposal of financial assets available for
sale
Total 751,289.68 260,963.91
Current investment income increase 490,300 Yuan over same period of last year with 187.89% up, mainly
because part of the associated enterprises gains a y-o-y decreased in losses and earnings from part of the
associated enterprises increased y-o-y.
(2) Long-term equity investment income by cost method
Amount at same period
Item Current amount
of last year
Huishang Bank Co., Ltd. 1,073,757.30 1,073,757.30
Guangyuan Meiling Appliance Marketing Co., Ltd. 80,112.18
Total 1,153,869.48
1,073,757.30
(3) Long-term equity investment income by equity method
Amount at same period
Item Current amount
of last year
170
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Hefei Meiling Solar Energy Technology Co., Ltd. -964,644.78 -768,399.40
Hefei Xingmei Assets Management Co.,Ltd. 211,404.54 175,797.67
CHANGHONG RUBA ELECTRIC COMPANY
160,000.00 -220191.66
(PRIVATE) LIMITED
Total -593,240.24 -812,793.39
(4) Investment income arising from disposal of long-term equity investment
Amount at same period
Item Current amount
of last year
Changzhou Meiling Appliance Marketing Co., Ltd. 175,788.73
Haozhou Meiling Appliance Marketing Co., Ltd. 14,871.71
Total 190,660.44
40.Non-operation revenue
(1)Non-operation revenue
Amount at same period
Item Current amount
of last year
Gains from disposal of non-current assets 137,952.34 152,002.92
Including: gains from disposal of fixed assets 137,952.34 152,002.92
gains from disposal of Intangible assets - -
Government subsidy 8,284,145.67 4,237,836.91
Income of penalty 426,985.10 144,666.02
Other 168,055.56 45,143.59
Total 9,017,138.67 4,579,649.44
Current non-operation revenue increase 4.4375 million Yuan over same period of last year with 96.90% up,
mainly because the government subsidy recognized in the Period increased year-on-year.
(2)Government subsidy
Amount at
Current
Item same period Source and basis
amount
of last year
Air conditioning energy Fiscal subsidy funds for the promotion of
saving and civil-benefit 265,200.00 energy-efficient air-condition of the project of
subsidy energy-saving products and civil-benefit
“Notification (Trial) of May Policy Measures on
Rewards for innovative
1,207,700.00 Further Independent Innovation for Undertaking
enterprise
Industrial Transfer in Hefei City” He Zheng [2012]
171
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
No.: 53 and He Zheng [2012] No.: 52
Tax reward of Management Committee, economy
Tax rebates 483,175.83 510,000.00
development zone He Jing Qu Jing [2013] No.: 14
Transferred-in deferred
4,308,606.67 1,227,304.11
income
A one-time reward for
Excellent reward for R&D institute and evaluation
technology center of the 359,000.00
which was identified newly
excellent enterprises
A one-time reward for
participation of the national 300,000.00 Standard setting reward
standard setting
R&D and application subsidy
of technology platform for 900,000.00 Mian Cai Jian[2013] No.: 29
smart air-condition
2011 subsidy of
transformation for key 300,000.00 Mian Cai Jian[2011] No.: 217
technology in Mianyang
Industrialization development
of the accuracy
temperature-controlled 500,000.00 Mian Ke Fa [2012] No.: 17
efficiency DC inverter
air-condition
Subsidy from Office of Science and Technology
Quota funding of patent
36,800.00 Hefei Municipal 10061479 quota funding patent
application
application
Fund for charges of foreign
250,000.00 Notification Policy: He Zhen [2011] No.:54
talent engaged
Other government grant etc. 1,082,663.17 791,532.80
Total 8,284,145.67 4,237,836.91
41.Non-operation expenses
Amount at same period
Item Current amount
of last year
Loss from disposal of non-current assets 3,304,049.48 5,333,936.81
Incl.: loss from disposal of fixed assets 3,304,049.48 5,333,936.81
loss from disposal of Intangible assets
External donation 3,000.00
172
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Penalty and late fee 108,630.70 196,241.46
Other 48,118.12 95,640.53
Total 3,463,798.30 5,625,818.80
Current non-operation expense decreases 2.162 million Yuan over same period of last year with 38.43%
down, mainly because disposal of non-current assets in the Period decreased.
42. Income tax expense
Amount at same period
Item Current amount
of last year
35,448,620.28 31,829,543.35
Current income tax
Deferred Income Tax 642,684.80 -17,963,582.33
Total 36,091,305.08 13,865,961.02
43. Calculation for basic earnings per share and diluted earnings per share
Amount at same
Item Serial Current amount
period of last year
Net profit attributable to shareholders of
1 135,691,575.62 110,855,042.20
parent company
Non-recurring gains and losses
2 5,050,878.04 -781,743.71
attributable to parent company
Net profit attributable to shareholders of
parent company after deduction of 3=1-2 130,640,697.58 111,636,785.91
non-recurring gains and losses
Total shares at the beginning of the year 4 763,739,205.00 636,449,338.00
Additional share capital transferred from public
reserve or additional shares from shares dividend 5
distribution (I)
Additional shares from issuing new shares
6
or debt-converted shares(II)
Accumulative months of the additional
shares(II) commencing from the next 7
month till the end of the year
Decreased shares due to repurchase 8
Accumulative months of the decreased shares
commencing from the next month till the 9
end of the year
Decreased shares due to share shrink 10
173
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Mouths during the report period 11
Weighted average of ordinary shares
12=4+5+6×7÷11-8×9÷11-10 763,739,205.00 636,449,338.00
issued
Basic earnings per share(I) 13=1÷12 0.1777
0.1742
Basic earnings per share(II) 14=3÷12 0.1711
0.1754
Diluted potential ordinary shares dividend
15
recognized as expense
Conversion expense 16
Income tax rate 17 15% 15%
weighted average of ordinary shares added
through warrant, exercise of option and 18
convertible bonds
Diluted earnings per share(I) 19=[1+(15-16)×(1-17)]÷(12+18) 0.1777 0.1742
Diluted earnings per share(II) 20=[3+(15-16)×(1-17)]÷(12+18) 0.1711 0.1754
44. Other comprehensive income
Amount at same
Item Current amount
period of last year
1. gains (losses) arising from financial assets available for sale
Less: affect of income tax arising from financial assets available for
sale
Net, written in other comprehensive income in previous period
and carried forward to gains and losses in current period
Subtotal
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 in previous period and
carried forward to gains and losses in current period
Subtotal
3. gains (losses) arising from cash flow hedge instruments
Less: affect of income tax arising from cash flow hedge instruments
Net, written in other comprehensive income in previous period and
carried forward to gains and losses in current period
Adjustment, converted to initial recognization amount of projects in
hedge
Subtotal
4. Conversion difference arising from foreign currency financial statement -291,859.80 -696,806.42
Less: net, carried forward to gains and losses in current period after
-
disposing overseas operation
174
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same
Item Current amount
period of last year
Subtotal -291,859.80 -696,806.42
5. Other
Less: affect of income tax arising from others which are written in
other comprehensive income
Net, others written in other comprehensive income in previous period
and carried forward to gains and losses in current period
Subtotal
Total -291,859.80 -696,806.42
45. 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 Current amount
Collecting subsidy of Energy-saving & civil-benefit 59,290,000.00
Government subsidy 4,545,307.29
ender bond 1,762,440.56
Other 6,311,166.12
Total 71,908,913.97
2) Cash paid for other activities relating to operation:
Item Current amount
Market support fee paid 94,595,517.64
Installation fee paid 51,076,379.13
Subsidy of energy-saving and civil-benefit pay for another 41,735,453.00
Advertisement paid 25,972,472.02
Domestic business travelling fee paid 22,966,827.46
Employee’s reserve fund paid 11,637,412.39
Business activity paid 10,414,420.97
Meetings organization fee paid 7,069,628.44
Exhibition charge paid 5,637,366.18
Storage lease expense paid 3,537,341.22
Other expenses 105,804,681.83
Total 380,447,500.28
3) Cash received from other activities relating to investment
175
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Item Current amount
Interest income arising from bank savings 22,460,863.18
Government subsidy received with project concerned 9,082,992.94
Other 567,677.00
Total 32,111,533.12
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)Supplementary information about consolidated cash flow statement
Amount at same
1 . Net profit is adjusted to cash flow of operation activities: Current amount
period of last year
Net profit 131,828,112.39 111,507,445.05
Add: provision for depreciation of assets 10,989,676.33 37,119,691.31
Depreciation of fixed assets, consumption of oil gas assets and
64,281,368.42 52,284,463.48
depreciation of productive biological assets
Amortization of intangible assets 13,287,151.98 23,483,817.85
Amortization of long-term retained expense -
Loss from disposal of fixed assets, intangible assets and other long
3,166,097.14 -34,755.69
term assets(gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed with “-”) 5,216,689.58
Loss from change of fair value(gain is listed with “-”) -
Financial expense (gain is listed with “-”) -12,810,933.39 -7,712,961.54
Investment loss (gain is listed with “-”) -751,289.68 -260,963.91
Decrease of deferred income tax assets (increase is listed with “-”) 642,684.80 -17,963,582.33
Increase of deferred income tax liabilities (decrease is listed with
-
“-”)
Decrease of inventories (increase is listed with “-”) 93,176,629.62 378,701,851.04
Decrease of operational accounts receivable (increase is listed with
-1,498,077,276.51 -1,383,917,065.74
“-”)
Increase of operational accounts payable (decrease is listed with “-”) 1,050,969,221.13 541,031,080.37
Other -
Net cash flow arising from operation activities -143,298,557.77 -260,544,290.53
2. Significant investment and financing activities with no reference to
cash collection and payment:
Debt convert to capital
Convertible bond due within one year
176
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Fixed assets leased in by financing
3. Net change in cash and cash equivalent:
Balance of cash at period-end 1,956,450,071.91 1,166,845,074.91
Less: Balance of cash at period-begin 1,701,307,578.13 1,401,674,679.41
Add: Balance of cash equivalent at period-end -
Less: Balance of cash equivalent at period-begin -
Net increase in cash and cash equivalent 255,142,493.78 -234,829,604.50
(3)Relevant information about acquiring or disposing subsidiaries or other operation units in
previous years: Nil
(4)Cash and cash equivalent
Amount at same
Item Current amount
period of last year
Cash 1,956,450,071.91 1,166,845,074.91
Including: stock cash 329,859.54 1,073,493.68
Bank deposit available for payment at any time 1,372,590,331.02 860,055,857.75
Other monetary capital available for payment at any time 583,529,881.35 305,715,723.48
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 1,956,450,071.91 1,166,845,074.91
Including: restricted cash and cash equivalent used by parent company or
subsidiaries
46. Items to statement of change of shareholders’ equity
(1) “Other ” items of amount at end of last year : Nil
(2)Other projects with significant amount in “III. (VII) Other ” items listed in Statement of Changes
of Shareholders’ Equity: Nil
VII. Accounting treatment for assets securitization: Nil
VIII. Related parties and related transaction
(I)Relationship of related parties
1. Controlling shareholder and ultimate controller
(1)Controlling shareholder and ultimate controller
177
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Controlling shareholder and Register Business
Type Legal rep. Organization code
ultimate controller place nature
Stock Manufacture
Sichuan Changhong Electric Co., Ltd. Mianyang Zhao Yong 20541230-8
company and sales
Sichuan Changhong Electronics Group Limited Manufacture
Mianyang Zhao Yong 72081866-0
Co., Ltd. company and sales
(2) Register capital and change thereof of controlling shareholder
Increase during Decrease during
Controlling shareholder Year-begin Period-end
the Period the Period
Sichuan Changhong Electric Co.,
4,616,244,222 4,616,244,222
Ltd.
(3)Shares held by the controlling shareholder and its changes on equity (including shares held
directly/indirectly)
Amount of shares held Shareholding ratio
Controlling shareholder Amount at Amount at Ratio at Ratio at
period-end year-begin period-end year-begin
Sichuan Changhong Electric Co.,
164,828,330 164,828,330 24.88% 24.88%
Ltd.
2. Subsidiaries
More details of subsidiary found in Annotation 5(I).
3. Affiliated enterprise
Register Business Legal Register Sharehol Organizatio
Invested unit Type
place nature rep. capital ding ratio n code
Hefei Meiling Solar Energy Limited Feidong Manufactures Ren RMB 9.5
32.751% 73733490-2
Technology Co., Ltd. company County and sales Sheming million
Consultant,
Hefei Xingmei Assets Limited agent, renting Huang RMB 1m
Hefei City 48.28% 57851196-6
Management Co.,Ltd. company and property Youzhi illion
management
Privately
Changhong Ruba Electric Manufactures US$4
Limited Pakistan 40.00% N/A
Company(Private) Ltd. and sales million
company
4. Other related parties
Type of related
Related parties Main business Organization code
relationship
Other enterprises under control from the same controlling shareholder or terminal controller -
PT.CHANGHONG ELECTRIC INDONESIA Sales N/A
Chengdu Lejiayi Trading Co., Ltd. Sales 79782546-3
Fuzhou Lejiayi Trading Co., Ltd. Sales 67652028-4
178
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Type of related
Related parties Main business Organization code
relationship
Guangdong Changhong Electrics Co., Ltd. Purchase ,Sales 78940429-8
Guangdong Changhong Digital Technology Co., Ltd. Utilities provided 78940429-8
Hefei Changhong Industrial Co., Ltd. Sales 66621592-1
Huayi Compressor Co., Ltd. Purchase ,Sales 70562223-x
Jinan Lejiayi Trading Co., Ltd. Sales 67227469-6
Jiangxi Changhong Electronic Technology
Sales 667483178
Development Co., Ltd.
Kunming Yijiahong Trade Co., Ltd. Sales 67656328-4
Lejiayi Chain Management Co., Ltd. Sales 66535156-9
Mianyang Hongfa Mould Design Co., Ltd. Purchase ,Sales 79582077-3
Mianyang Lejiayi Trading Chain Co., Ltd. Sales 665391552
Sichuan Hongou Display Device Co., Ltd. Sales 66275681-9
Sichuan Hongrui Electrics Co., Ltd. Sales 68237616-X
Sichuan CCO Display Technology Co., Ltd. Sales 66968647-0
Purchase , Labor
Sichuan Hongxin Software Co., Ltd. 671440445
service received
Sichuan Changhong Packing & Printing Co., Ltd. Purchase 79399834-0
Sichuan Changhong Power Co., Ltd. Purchase 205418582
Sichuan Changhong Electronic System Co., Ltd. Sales 779839036
Sichuan Changhong Jijia Jinggong Co., Ltd. Purchase ,Sales 793998375
Sichuan Changhong Precision Electronic Technology
Purchase ,Sales 79399836-7
Co., Ltd.
Transportation,
Sichuan Changhong Minsheng Logistic Co., Ltd. 79785892-7
leasing
Sichuan Changhong Mold Technology Co., Ltd. Purchase ,Sales 782291526
Sichuan Changhong Devices Technology Co., Ltd. Purchase 793998359
Sichuan Changhong New Energy Technology Co., Ltd. Purchase ,Sales 79399394-5
Taiyuan Lejiayi Trade Chain Co., Ltd. Sales 779841582
Tianjin Lejiayi Trade Co., Ltd. Sales 67371694-3
CHANGHONGELECTRIC(AUSTRA) Sales N/A
Zhongshan Guanghong Mold Technology Co., Ltd. Purchase 69226840
Chongqing Hongshenghuo Trading Co., Ltd. Sales 69226840
179
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Type of related
Related parties Main business Organization code
relationship
081 Electronic Group Sichuan Liyuan Electronic Co.,
Purchase 205809540
Ltd.
Mianyang Hongrun Electronic Co., Ltd. Purchase 769966197
Changhong (Hong Kong) Trading Co., Ltd. Sales N/A
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. Sales 66744793
Wandone Network Technology Co., Ltd. Sales 55644636-6
CHANGHONG ELECTRIC MIDDLE EAST FZE Sales N/A
Sichuan Changhong Gerun Renewable Resources Co.,
Sales 556427608
Ltd.
BVCH Optronics (Sichuan) Co., Ltd. Purchase 69226840-2
Xi’an Lejiayi Trade Co., Ltd. Sales 67328229-2
Sichuan Huafeng Corp. Group Sales 20540125-4
Sichuan Changhong International Hotel Co., Ltd. Sales 720818652
Sichuan Changhong Xinrui Technology Co., Ltd. Purchase 66276762-2
Affiliated enterprise of controlling shareholder and actual controller
Sichuan Changxin Refrigeration Parts Co., Ltd. Purchase ,Sales 779841582
Sichuan Hongyu Metal Manufacture Co., Ltd. Purchase 665361804
Sichuan Changhong Dongyuan Precision Equipment
Purchase 795816686
Co., Ltd.
Anhui Xinhao PDPs Co., Ltd. Sales 689786153
Joint-venture and affiliated of Subsidiary
Haozhou Meiling Appliance Marketing Co., Ltd. Sales 698966527
Changzhou Meiling Appliance Marketing Co., Ltd. Sales 550268036
Guangxi Meiling Home Appliances Co., Ltd. Sales 552250948
Guangyuan Meiling Appliance Marketing Co., Ltd. Sales 699154600
Jiujiang Meiling Appliance Marketing Co., Ltd. Sales 696096089
Xuancheng Meiling Appliance Marketing Co., Ltd. Sales 556318284
Buyang Meiling Appliance Marketing Co., Ltd. Sales 56635286-5
(II)Related transaction
1. Purchase commodities
180
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same period of
Current amount (10
Type of related parties and names of related parties last year (10 thousand
thousand Yuan)
Yuan)
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 6,081.61 4,635.26
Sichuan Changhong Electronics Group Co., Ltd.
Other enterprises under control from the same controlling
shareholder or terminal controller -
Including: Huayi Compressor Co., Ltd. 36,107.46 24,256.98
Sichuan Changhong Mold Technology Co., Ltd. 18,300.48 13,502.88
Sichuan Changhong Jijia Jinggong Co., Ltd. 8,490.76 9,710.39
Mianyang Hongfa Mould Design Co., Ltd. 3.50
Sichuan Changhong Packing & Printing Co., Ltd. 1,758.07 1,454.17
Sichuan Changhong Precision Electronic Technology
191.30 144.38
Co., Ltd.
Sichuan Changhong Devices Technology Co., Ltd. 688.76
Sichuan Changhong New Energy Technology Co., Ltd. 35.52 33.42
081 Electronic Group Sichuan Liyuan Electronic Co.,
673.79 374.66
Ltd.
Mianyang Hongrun Electronic Co., Ltd. 573.22 439.46
Guangdong Changhong Electrics Co., Ltd. 19.40 23.57
Zhongshan Guanghong Mold Technology Co., Ltd. 9.84
Mianyang Hongfa Technology Co., Ltd. 4.41
Guangdong Changhong Digital Technology Co., Ltd. 7.84
Sichuan Changhong Electronic Devices Co., Ltd. 1,961.00
Sichuan Changhong Xinrui Technology Co., Ltd. 272.16
Affiliated enterprise of controlling shareholder and actual
controller ：
Including: Sichuan Hongyu Metal Manufacture Co., Ltd. 9.40 11.92
Sichuan Changxin Refrigeration Parts Co., Ltd. 6,882.94 5,442.90
Sichuan Changhong Dongyuan Precision Equipment
2,038.47 508.78
Co., Ltd.
Sichuan Changhe Technology Co., Ltd. 86.35
Sichuan Jinghong Package Products Co., Ltd. 749.97
181
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same period of
Current amount (10
Type of related parties and names of related parties last year (10 thousand
thousand Yuan)
Yuan)
Total 83,411.33 62,073.69
Concerning good purchasing of the Company, except for the material scarcity provided and major materials with
stable supplying, 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
Current period Same period of last year
Amount Amount
Type of related parties and names of related parties Ratio Ratio
(10 thousand (10 thousand
(%) (%)
Yuan) Yuan)
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 71,470.33 12.01 77,224.47 14.54
Sichuan Changhong Electronics Group Co., Ltd. 267.46 0.04
Other enterprise controlled by same parent company and
ultimate controller
Including: PT.CHANGHONG ELECTRIC INDONESIA 2,977.40 0.50 3,563.76 0.67
Sichuan Changhong Jijia Jinggong Co., Ltd. 1,814.08 0.30 1304.50 0.25
Sichuan Changhong Mold Technology Co., Ltd. 5,577.96 0.94 2374.22 0.45
Sichuan CCO Display Technology Co., Ltd. 55.60 0.01
Mianyang Lejiayi Trading Chain Co., Ltd. 237.14 0.04 2.85 0.00
Changhong (Hong Kong) Trading Co., Ltd. 14.01 0.00 11.60 0.00
Sichuan Hongwei Technology Co., Ltd. 0.33 0.00
Lejiayi Chain Management Co., Ltd. 1780.16 0.34
Sichuan Hongxin Software Co., Ltd. 2.03 0.00
Chongqing Hongshenghuo Trading Co., Ltd. 51.91 0.01 100.36 0.02
Huayi Compressor Co., Ltd.
Sichuan Changhong Devices Technology Co., Ltd. 0.51 0.00
Fuzhou Lejiayi Trading Co., Ltd.
Sichuan Hongrui Electrics Co., Ltd. 1.12 0.00
Sichuan Changhong New Energy Technology Co., Ltd. 31.62 0.01 0.17 0.00
CHANGHONGELECTRIC(AUSTRA) 716.74 0.12 1693.62 0.32
BVCH Optronics (Sichuan) Co., Ltd.
182
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Current period Same period of last year
Amount Amount
Type of related parties and names of related parties Ratio Ratio
(10 thousand (10 thousand
(%) (%)
Yuan) Yuan)
Guangdong Changhong Digital Technology Co., Ltd. 103.04 0.02 0.4 0.00
Sichuan Changhong Packing & Printing Co., Ltd. 0.56 0.00
Sichuan Changhong Precision Electronic Technology Co.,
52.17 0.01
Ltd.
Sichuan Changhong Minsheng Logistic Co., Ltd. 22.82 0.00 30.90 0.01
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. 254.70 0.04
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. 418.95 0.07 122.75 0.02
Sichuan Changhong Power Co., Ltd. 3.50 0.00
Wandone Network Technology Co., Ltd. 77.19 0.01
CHANGHONG ELECTRIC MIDDLE EAST FZE 1,796.39 0.30 945.77 0.18
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 45.71 0.01 8.32 0.00
Hefei Changhong Industrial Co., Ltd. 115.91 0.02
Sichuan Changhong Development Co., Ltd. 0.80 0.00
Zhongshan Guanghong Mold Technology Co., Ltd. 15.10 0.00
Chongqing Wandao E-Business Co., Ltd.
Sichuan Changhong Xinrui Technology Co., Ltd. 264.52 0.04
Affiliated enterprise of controlling shareholder and actual
controller
Including: Sichuan Changhong Dongyuan Precision Equipment
2.10 0.00 0.21 0.00
Co., Ltd.
Joint-venture and affiliated
Including: Haozhou Meiling Appliance Marketing Co., Ltd. 443.23 0.07 2,031.61 0.38
Guangyuan Meiling Appliance Marketing Co., Ltd. 940.80 0.18
Changzhou Meiling Appliance Marketing Co., Ltd. -5.64 -0.00 663.68 0.12
Guangxi Meiling Home Appliances Co., Ltd. 5,318.43 0.89 6,388.11 1.20
Xuancheng Meiling Appliance Marketing Co., Ltd. 1,000.34 0.17 1,969.47 0.37
Jiujiang Meiling Appliance Marketing Co., Ltd. 50.49 0.01 2,590.86 0.49
Buyang Meiling Appliance Marketing Co., Ltd. 11,001.28 1.85 10,093.84 1.90
Total 104,054.27 17.48 113,988.01 21.46
Business contacts with related parties are performing under normal market business regulation and
have the same situation towards other enterprises. Concerning the price purchase/sales and other
183
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
labor provided between the Companies 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 negotiated 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. Rent of related parties
Leasing
Type of
Date of Date of Pricing basis for income
Lessor Lessee assets
starting end leasing recognized in
leasing
this year
Hefei Branch of Sichuan Contract of workshop
Hefei Meiling
Changhong Mold Plant 2013-1-1 2013-12-31 647,190.00
Co., Ltd.
Technology Co., Ltd. leasing
Hefei Branch of Sichuan Contract of workshop
Hefei Meiling
Changhong Jijia Jinggong Plant 2013-1-1 2013-12-31 233,280.00
Co., Ltd.
Co., Ltd. leasing
Zhongshan
Changhong Guangdong Changhong
Trade center 2013-1-1 2013-12-31 Lease Contract 413,858.20
Appliance Co., Electrics Co., Ltd.
Ltd.
Zhongshan
Guangdong Changhong
Changhong
Digital Technology Co., Trade center 2013-1-1 2013-02-28 Lease Contract 41,204.80
Appliance Co.,
Ltd.
Ltd.
Zhongshan
Sichuan Changhong
Changhong
Minsheng Logistic Co., Trade center 2013-1-1 2013-12-31 Lease Contract 21,136.92
Appliance Co.,
Ltd.
Ltd.
Zhongshan
Nantou Branch of Sichuan
Changhong
Kuaiyidian Appliance Trade center 2013-1-1 2013-12-31 Lease Contract 17,160.00
Appliance Co.,
Service Chain Co., Ltd.
Ltd.
Jiangxi Meiling Sichuan Changhong Contract of
Appliance Co., Mold Technology Co., Plant leasing 2013-1-1 2014-4-30 204,120.00
Ld. Ltd. workshop leasing
4. Lessee of related parties
Leasing
Type of
Date of Pricing basis for income
Lessor Lessee assets Date of end
starting leasing recognized in
leasing
this period
Sichuan Changhong
Sichuan Changhong Contract of assts
Air Conditioner Co., Plant 2013-1-1 2013-12-31 3,229,132.56
Electric Co., Ltd. leasing
Ltd.
184
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Leasing
Type of
Date of Pricing basis for income
Lessor Lessee assets Date of end
starting leasing recognized in
leasing
this period
Sichuan Changhong Mianyang Meiling
Contract of
Minsheng Logistic Refrigeration Co., Plant 2013-1-1 2013-12-31 2,933,725.20
workshop leasing
Co., Ltd. Ltd.
5. Related guarantee
(1) Guarantee to related parties from the Company: Nil
(2) Guarantee between companies in consolidation statement range:
Maximized Date start Due date Whether
Party providing guarantee Party receiving guarantee guarantee for for implement
amount guarantee guarantee ed or not
Zhongshan Changhong Appliance Co.,
Hefei Meiling Co.,Ltd. 50,000,000.00 2012-4-23 2013-6-30 No
Ltd.
On 23 April 2012, the Company signed maxima assurance contract (2012-20110214G- No. 69023901) with
Zhongshan Nantou Branch of the Industrial and Commercial Bank of China, with contract amount of RMB50
million, debtor (guarantee) being Zhongshan Changhong and guarantee term from 23 April 2012 to 30 June 2013.
The Company provided corresponding guarantee for a series of liabilities of Zhongshan Changhong arising from
bank businesses (including borrowings, bills and open of letter of credit, etc.) during the aforesaid period. Till now,
each party has been executing the contract strictly , providing guarantee for foreign-currency borrowing contract,
foreign exchange transfer to loan contract, bank acceptance agreement, open agreement of letter of credit, open of
guarantee agreement, international and domestic trade financing agreement, forward settlement agreement and
other financial derivative products agreement. As of 30 June 2013, part of the bank acceptance business in the
above said guarantee still in implementation.
6. Assets transfer of related parties
Type of related Amount at same
Related parties Current amount
transaction period of last year
Purchasing fixed
Sichuan Changhong Electric Co., Ltd. 9,848,769.23 645,025.00
assets
Purchasing fixed
Sichuan Hongxin Software Co., Ltd. 1,414,100.00
assets
Sichuan Changhong Precision Electronic Purchasing fixed
31,881.37
Technology Co., Ltd. assets
Total 11,262,869.23 676,906.37
Sichuan Kuaiyidian Appliance Service Chain Co.,
Fixed assets sold 50,000.00
Ltd.
Sichuan Changhong Gerun Renewable Resources
Fixed assets sold 68,591.50
Co., Ltd.
185
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Type of related Amount at same
Related parties Current amount
transaction period of last year
Sichuan Changhong Electric Co., Ltd. Fixed assets sold
Sichuan Changhong Mold Technology Co., Ltd. Fixed assets sold 40,000.00
Sichuan Changhong Minsheng Logistic Co., Ltd. Fixed assets sold 1,515,429.10
Total 158,591.50 1,515,429.10
7. Receiving labor service
Provider Current amount Amount last year
Sichuan Hongxin Software Co., Ltd. 500,000.00 1,300,000.00
Sichuan Changhong Minsheng Logistic Co., Ltd. 189,294,408.44 137,507,322.33
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. 36,481,760.48 27,936,717.65
Sichuan Changhong Electric Co., Ltd. 6,380,554.84 4,866,889.82
Total 232,656,723.76 171,610,929.80
8. Utilities provided
Amount at same
Related party (acceptor party) Current amount
period of last year
Guangdong Changhong Electrics Co., Ltd. 536,599.81 375,113.52
Guangdong Changhong Digital Technology Co., Ltd. 23,367.99 67,803.38
Sichuan Changhong Minsheng Logistic Co., Ltd. 17,626.80 18,270.58
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. 1,272.40 16,020.87
Zhongshan Guanghong Mold Technology Co., Ltd. 2,830.71
Sichuan Changhong Jijia Jinggong Co., Ltd. 144,972.65
Sichuan Changhong Mold Technology Co., Ltd. 3,251,392.03
Total 3,975,231.68 480,039.06
9. Utilities accepted
Amount at same
Related party (provider party) Current amount
period of last year
Huayi Compressor Co., Ltd. 534,737.10
Total 534,737.10
(III) Balance of contact with related party
1. Account receivable of related party
Relate parties (item) Period-end Year-begin
Controlling shareholder and ultimate controller
186
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Relate parties (item) Period-end Year-begin
Including: Sichuan Changhong Electric Co., Ltd. 25,257.14 529,937.38
Sichuan Changhong Electronics Group Co., Ltd. 3,129,300.00
Other enterprises under control from the same controlling shareholder y
or terminal controller -
Including: Sichuan CCO Display Technology Co., Ltd. 7,500.00 7,500.00
Sichuan Changhong Mold Technology Co., Ltd. 410,530.62 647,197.51
CHANGHONGELECTRIC(AUSTRA) 5,981,267.02 5,627,070.74
PT.CHANGHONG ELECTRIC INDONESIA 36,323,267.47 51,571,842.98
Hefei Changhong Industrial Co., Ltd. 796,472.29 1,556,940.30
Huayi Compressor Co., Ltd. 0.43 0.43
Guangdong Changhong Digital Technology Co., Ltd. 840,000.00
Guangdong Changhong Electrics Co., Ltd. 50,258.35
Chongqing Hongshenghuo Trading Co., Ltd. 38,129.00 321.20
Sichuan Hongou Display Device Co., Ltd. 131,550.04 131,550.04
Sichuan Changhong Jijia Jinggong Co., Ltd. 2,753,636.34 233,280.06
Sichuan Changhong Minsheng Logistic Co., Ltd. 266,943.40 72,577.00
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. 3,752,059.87 224,092.46
Sichuan Changhong Precision Electronic Technology Co., Ltd. 426,788.36 427,288.36
Mianyang Lejiayi Chain Trading Co., Ltd. 60,485.02 31,868.62
Changhong (Hong Kong) Trading Co., Ltd. 140,051.69 133,295.18
Sichuan Changhong Devices Technology Co., Ltd. 5,999.67
CHANGHONG ELECTRIC MIDDLE EAST FZE 7,685,470.70
Zhongshan Guanghong Mold Technology Co., Ltd. 21,368.88
Sichuan Changhong Packing & Printing Co., Ltd. 2,400.00
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. 2,086,000.00
Sichuan Changhong Power Co., Ltd. 41,000.00
Sichuan Hongxin Software Co., Ltd. 23,800.00
Sichuan Changhong New Energy Technology Co., Ltd. 369,999.99
Sichuan Changhong International Hotel Co., Ltd. 2,372.00 11,094.60
Sichuan Changhong Xinrui Technology Co., Ltd. 2,342,190.14 159,145.15
Affiliated enterprise of controlling shareholder and actual controller
Anhui Xinhao PDPs Co., Ltd. 3,276,511.72
Joint-venture and affiliated
Including: Buyang Meiling Appliance Marketing Co., Ltd. 560.00 560.00
Guangyuan Meiling Appliance Marketing Co., Ltd. 7,282.40
Hefei Meiling Solar Energy Technology Co., Ltd. 50,010.80
Xuancheng Meiling Appliance Marketing Co., Ltd. 77,443.82
Jiujiang Meiling Appliance Marketing Co., Ltd. 207,062.22
187
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Relate parties (item) Period-end Year-begin
Guangxi Meiling Appliance Marketing Co., Ltd. 16,677,339.14 14,349,204.09
CHANGHONG RUBA ELECTRIC CO.,LTD 13,049,478.52 9,323.74
Haozhou Meiling Appliance Marketing Co., Ltd. 1,304.50 136,147.50
Total 101,010,833.19 75,910,495.69
2. Account receivable in advance of related parties
Relate parties (item) Period-end Year-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 21,580,163.77 354,322.89
Other enterprises under control from the same controlling shareholder y
or terminal controller -
Including: Chengdu Lejiayi Trading Co., Ltd. 260.06 501.21
Sichuan Changhong Electronic System Co., Ltd. 1.00 0.40
Mianyang Lejiayi Trading Chain Co., Ltd. 225,563.78 13,060,613.52
Sichuan Changhong Precision Electronic Technology Co., Ltd.
Sichuan Changhong Mold Technology Co., Ltd.
Sichuan Changhong Devices Technology Co., Ltd. 0.33
Chongqing Hongshenghuo Trading Co., Ltd. 87,267.00 8,793.00
CHANGHONG ELECTRIC MIDDLE EAST FZE
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. 894,000.00
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 4,075.14 4,075.14
Guangdong Changhong Digital Technology Co., Ltd. 360,000.00
Wandone Network Technology Co., Ltd. 2,000.00
Sichuan CCO Display Device Co., Ltd. 13,707.00
Affiliated enterprise of controlling shareholder and actual controller
Including: Sichuan Changhong Dongyuan Precision Equipment Co., Ltd. 1,080.33 0.33
Joint-venture and affiliated of Subsidiary
Including: Haozhou Meiling Appliance Marketing Co., Ltd. 3,426,745.41
Changzhou Meiling Appliance Marketing Co., Ltd. 354,129.63
Guangyuan Meiling Appliance Marketing Co., Ltd.
Jiujiang Meiling Appliance Marketing Co., Ltd. 2,350,691.67
Xuancheng Meiling Appliance Marketing Co., Ltd. 3,630.00 3,539,699.98
Buyang Meiling Appliance Marketing Co., Ltd. 966,666.22 3,326,678.43
188
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Relate parties (item) Period-end Year-begin
Total 22,884,414.30 27,680,251.94
3. Account payable of related parties
Relate parties (item) Period-end Year-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electronics Group Co., Ltd. 60,553.56 60,553.56
Parent company and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 23,575,283.37 29,061,639.39
Other enterprises under control from the same controlling shareholder y
or terminal controller -
Including: Sichuan Changhong Mold Technology Co., Ltd. 92,876,354.56 61,802,750.43
Huayi Compressor Co., Ltd. 162,586,318.55 90,278,145.60
Sichuan Changhong Jijia Jinggong Co., Ltd. 84,478,384.16 41,995,189.95
Sichuan Changhong Minsheng Logistic Co., Ltd. 42,999,848.92 34,929,272.17
Sichuan Changhong Packing & Printing Co., Ltd. 898,855.59 8,094,995.93
Sichuan Changhong Devices Technology Co., Ltd. 20.08 2,980.08
Mianyang Hongrun Electronic Co., Ltd. 2,609,714.68 880,981.25
Sichuan Changhong Precision Electronic Technology Co., Ltd. 2,092,274.59 818,111.49
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. 1,231,288.59 646,820.97
Sichuan Changhong New Energy Technology Co., Ltd. 377,670.77 184,449.70
Guangdong Changhong Electrics Co., Ltd. 22,817.80
Sichuan Hongxin Software Co., Ltd. 255,000.00
Sichuan Changhong Power Co., Ltd. 42,368.18 39,226.34
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. 22,796,970.34 61,959.20
Zhongshan Guanghong Mold Technology Co., Ltd. 17,123.21
Sichuan Changhong Electronic Devices Co., Ltd. 17,688,201.89 7,638,692.15
Sichuan Hongwei Technology Co., Ltd. 11,407.50 2,112.50
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 10,503.63 10,503.63
Sichuan Changhong International Hotel Co., Ltd. 53,076.00 158,410.00
Sichuan Huafeng Corp. Group 12,466,893.33
Sichuan Changhong Xinrui Technology Co., Ltd. 2,288,366.73
Affiliated enterprise of controlling shareholder and actual controller
189
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Relate parties (item) Period-end Year-begin
Including: Sichuan Changxin Refrigeration Parts Co., Ltd. 19,093,375.96 13,118,338.85
Sichuan Changhong Dongyuan Precision Equipment Co., Ltd. 360,486.42 12,915.25
Sichuan Hongyu Metal Manufacture Co., Ltd. 154,382.05 71,477.02
Sichuan Changhe Technology Co., Ltd. 524,365.45
Sichuan Jinghong Package Products Co., Ltd. 4,178,287.72
Total 489,030,417.25 294,589,301.84
4. Account payable in advance of related parties
Relate parties (item) Period-end Year-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 490,196.00 128,656.00
Other enterprises under control from the same controlling shareholder y
or terminal controller -
Including: Sichuan Jiahong Industrial Co., Ltd. 2,500,000.00
Sichuan Changhong Minsheng Logistic Co., Ltd. 29,666.89
Total 490,196.00 2,658,322.89
5. Other account receivable of related parties
Relate parties (item) Period-end Year-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electronics Group Co., Ltd. 39,500.00
Other enterprises under control from the same controlling shareholder y
or terminal controller -
Including: BVCH Optronics (Sichuan) Co., Ltd. 67,638.00
Sichuan Changhong Mold Technology Co., Ltd. 333,595.00 10,000.00
Sichuan Changhong Jijia Jinggong Co., Ltd. 116,640.00
Joint-venture and affiliated
Including: Guangyuan Meiling Appliance Marketing Co., Ltd. 10664.17 10,664.17
CHANGHONG RUBA ELECTRIC CO.,LTD 613,136.01 91,858.13
Changzhou Meiling Appliance Marketing Co., Ltd. 11,423.01
Guangxi Meiling Appliance Marketing Co., Ltd. 2,753.04 112,809.42
Xuancheng Meiling Appliance Marketing Co., Ltd. 2,150.00 11,736.00
Jiujiang Meiling Appliance Marketing Co., Ltd. 13,440.48 96,980.82
Total 1,092,378.70 452,609.55
190
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
6. Other account payable of related parties
Relate parties(Item) Period-end Year-begin
Controlling shareholder and ultimate controller
Including:Sichuan Changhong Electric Co., Ltd. 15,039,097.81 5,756,532.91
Sichuan Changhong Electronics Group Co., Ltd. 8,725.98
Other enterprises under control from the same controlling shareholder y
or terminal controller
Including: Sichuan Changhong Minsheng Logistic Co., Ltd. 32,422,795.65 12,212,552.46
Sichuan Changhong Mold Technology Co., Ltd. 321,998.47 320,000.00
Sichuan Changhong Jijia Jinggong Co., Ltd. 210,966.64 7,200,000.00
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 10,000.00 10,000.00
Sichuan Changhong Development Co., Ltd.
Jingdezhen Honghua Home Appliance Parts Co., Ltd. 50,000.00 50,000.00
Sichuan Kuaiyidian Appliance Service Chain Co., Ltd. 8,054,695.82 7,586,866.77
Sichuan Changhong International Hotel Co., Ltd. 925.75
Affiliated enterprise of controlling shareholder and actual controller
Including: Sichuan Changhong Dongyuan Precision Equipment Co., Ltd. 227,934.86 227,934.86
Sichuan Changhe Technology Co., Ltd. 50,000.00
Total 56,347,140.98 33,413,887.00
IX. Share-based payment: Nil
X. Contingency
The Company has no major contingency disclosurable till end of 30 June 2013
XI. Commitments
The Company has no major commitments disclosurable till end of 30 June 2013
XII. Events occurring after the balance sheet date
The Company has no major events occurring after the balance sheet date disclosurable till end of 30
June 2013
XIII. Segment information (in 10 thousand Yuan)
Segment of Semi-annual report of 2013
Marketing Offset
Item Refrigerat Air-conditi Washing Other Total
between
191
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
or and on machine segments
freezer
Operation income 356,775.28 192,417.01 759.14 278,385.53 12,752.79 245,945.29 595,144.46
Including: income from
119,790.89 192,110.70 126.40 278,385.53 4,730.94 595,144.46
external transaction
Income from
transaction between 236,984.39 306.31 632.74 8,021.86 245,945.30
segments
Operation expense 342,245.95 184,385.50 1,048.66 281,021.63 12,448.12 245,676.76 575,473.10
Operation profit 14,529.33 8,031.51 -289.52 -2,636.10 304.67 19,671.36
Total assets 842,905.51 192,304.37 2,827.86 108,130.36 27,936.31 230,841.86 943,262.55
Total liabilities 496,123.31 140,106.40 5,869.34 120,662.03 16,199.46 139,062.03 639,898.51
Supplementary
information
Depreciation and
6,046.89 968.15 426.11 5.81 309.89 7,756.85
amortization expense
Capital expenditure 3,753.20 1,734.91 189.58 13.33 138.03 5,829.05
Non-cash expense
except for depreciation 12,179.27 17,532.45 118.71 16,488.66 196.95 46,516.03
and amortization
XIV. Other significant matters
(I) Exchange of non-monetary assets: Nil
(II) Debt reorganization: Nil
(III) Renting
1. Minimum payment for rent: Nil
2. Fixed assets rent-in from financing: Nil
3. Minimum payment for rent: Nil
4. Operational leased-out assets
Type of assets leased out Period-end Year-begin
Houses and buildings( investment real estate) 15,534,179.22 16,664,805.83
Machinery equipment(fixed assets leased temporary) 435,124.65 534,206.79
Land use right( investment real estate) 599,380.67 653,736.13
Total 16,568,684.54 17,852,748.75
192
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
5. Minimum payment for rent in major operation renting: Nil
(IV) Financial instrument offering outside and convertible to shares at period-end: Nil
(V) Assets and liabilities measured by fair value: Nil
(VI) Financial assets and liabilities in foreign currency (converted to RMB)
Gains and
Accumulative fair Impairment
losses of fair
Item Year-begin value change withdrew this Period-end
value change
recorded in equity Period
in Period
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 receivable 192,431,540.07 5,634,097.76 254,300,753.33
Financial assets available for
sale
Hold-to-maturity investment
Subtotal of financial assets 192,431,540.07 5,634,097.76 254,300,753.33
Financial liability
Foreign currency loans 45,456,805.14 9,268,050.00
Subtotal of Financial
45,456,805.14 9,268,050.00
liability
(VII) Pension Scheme and major changes: Nil
(VIII) Discontinuing operation: Nil
XV. Notes to main items of financial statement of parent company
1. Account receivables
(1) Age structure of account receivable
Period-end Year-begin
Item Book balance Bad debt provision Book balance Bad debt provision
Ratio Ratio Ratio
Amount Ratio (%) Amount Amount Amount
(%) (%) (%)
Within 1
985,936,951.41 98.92 7,846,765.94 55.10 959,491,006.43 98.76 5,805,195.40 45.62
year
1-2 years 3,543,508.64 0.36 531,526.30 3.73 2,211,537.78 0.23 331,730.67 2.61
2-3 years 820,451.32 0.08 287,157.96 2.02 3,858,803.95 0.40 1,350,581.38 10.61
3-4 years 1,785,989.77 0.18 982,294.37 6.90 1,279,161.27 0.13 703,538.70 5.53
193
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Period-end Year-begin
Item Book balance Bad debt provision Book balance Bad debt provision
Ratio Ratio Ratio
Amount Ratio (%) Amount Amount Amount
(%) (%) (%)
4-5 years 1,229,151.68 0.12 1,209,791.36 8.50 1,708,099.57 0.18 1,708,099.57 13.42
Over 5
3,430,983.62 0.34 3,380,972.82 23.75 2,908,149.19 0.30 2,825,907.39 22.21
years
Total 996,747,036.44 100.00 14,238,508.75 100.00 971,456,758.19 100.00 12,725,053.11 100.00
Net value 982,508,527.69 958,731,705.08
(2) Risk structure of account receivable
Period-end Year-begin
Item Book balance Bad debt provision Book balance Bad debt provision
Ratio Ratio Ratio Ratio
Amount Amount Amount Amount
(%) (%) (%) (%)
Account receivable with single
significant amount and
withdrawal single item bad debt
provision
Account receivable withdrawal bad debt provision by combination
combination 1 165,683,179.94 16.62 12,226,295.67 7.38 125,922,253.73 12.96 10,659,888.79 8.47
combination 2 829,051,643.42 83.18 - - 843,469,340.14 86.83
Combination Subtotal 994,734,823.36 99.80 12,226,295.67 1.23 969,391,593.87 99.79 10,659,888.79 1.10
Account receivable with single
minor amount but withdrawal 2,012,213.08 0.20 2,012,213.08 100.00 2,065,164.32 0.21 2,065,164.32 100.00
single item bad debt provision
Total 996,747,036.44 100.00 14,238,508.75 1.43 971,456,758.19 100.00 12,725,053.11 1.31
Net value 982,508,527.69 958,731,705.08
(3) Account receivable with single significant amount and withdrawal bad debt provision single: Nil
(4) Withdrawal bad debt provision by account age in combination 1:
Period-end Year-begin
Account age Bad debt Ratio Bad debt
Amount Ratio (%) Amount
provision (%) provision
Within 1 year 156,935,318.79 5 7,846,765.94 116,103,908.09 5 5,805,195.40
1-2 years 3,543,508.64 15 531,526.30 2,211,537.78 15 331,730.67
2-3 years 820,451.32 35 287,157.96 3,858,803.95 35 1,350,581.38
3-4 years 1,785,989.77 55 982,294.37 1,279,161.27 55 703,538.70
4-5 years 129,068.78 85 109,708.46 85
Over 5 years 2,468,842.64 100 2,468,842.64 2,468,842.64 100 2,468,842.64
Total 165,683,179.94 12,226,295.67 125,922,253.73 10,659,888.79
Net value 153,456,884.27 115,262,364.94
(5) Accounts in combination 2:
194
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Combination Book balance
Connected amount between related parties 789,492,004.64
Account receivable with L/C 39,559,638.78
Total 829,051,643.42
(6) Account receivable with single minor amount but withdrawal single item bad debt provision at period-end
Bad debt Accrual
Account receivables Book balance Reasons
provision proportion
Shandong Wendeng Department Store
129,051.14 129,051.14 100%
Corporation
Jiangsu Zhenjiang GOME Electrical
123,474.37 123,474.37 100% Cease
Appliance Co., Ltd.
business
Liuzhou Minyu Hardware Appliance Business 51,588.00 51,588.00 100%
contact 3-5
Nanjing Central Emporium Co., Ltd. 512,925.85 512,925.85 100% years;
Zhejiang Yongle Appliance Co., Ltd. predicted
95,090.82 95,090.82 100%
(Taizhou) un-recovere
d for urgent
Gaomi Sanhe Appliance Market Co., Ltd. 610,458.57 610,458.57 100%
Cifeng Baixin Apparatus Co., Ltd. 271,114.97 271,114.97 100%
Yichun Jixing Appliance Town 218,509.36 218,509.36 100%
Total 2,012,213.08 2,012,213.08
(7) Account receivable received of previous that being verified in this period: Nil
(8) Bad debt provision switch-back:
Account
Unit Book balance Switch-back
age
Jiangsu Zhenjiang GOME Electrical Appliance Over 5
52,951.24 52,951.24
Co., Ltd. years
Note: the above account receivable in this period switch-back as bad debt provision.
(9) Bad debt of account receivable verified in this period: Nil
(10) Arrears of the shareholders holding more than 5% (including 5%) shares with voting rights of
the Company
Unit Period-end Year-begin
Sichuan Changhong Electric Co., Ltd. 25,257.14 25,257.14
(11) Top five account receivable has RMB 290,561,740.87 in total, a 29.15% in total account receivable at
period-end
(12) Account receivable of related parties
195
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Related Proportion in total account
Unit Amount
relationship receivable
Beijing Meiling Appliance Marketing Co.,
Subsidiary 79,914,993.36 8.02%
Ltd.
Nanjing Meiling Appliance Marketing Co.,
Subsidiary 61,579,392.34 6.18%
Ltd.
Jiangxi Meiling Appliance Co., Ld. Subsidiary 53,575,272.34 5.38%
Chengdu Meiling Appliance Marketing Co.,
Subsidiary 47,991,306.86 4.81%
Ltd.
Guangzhou Meiling Appliance Marketing
Subsidiary 47,500,775.97 4.77%
Co., Ltd.
Shanghai Meiling Appliance Marketing
Subsidiary 42,719,871.70 4.29%
Co., Ltd.
Shensheng Meiling Appliance Marketing
Subsidiary 40,700,263.13 4.08%
Co., Ltd.
Tianjin Meiling Appliance Marketing Co.,
Subsidiary 29,247,858.49 2.93%
Ltd.
Wuhan Meiling Appliance Marketing Co.,
Subsidiary 28,329,183.77 2.84%
Ltd.
Nantong Meiling Appliance Marketing Co.,
Subsidiary 27,470,119.22 2.76%
Ltd.
Hanzhou Meiling Appliance Marketing Co.,
Subsidiary 26,689,773.32 2.68%
Ltd.
Zhenzhou Meiling Appliance Marketing
Subsidiary 24,942,640.38 2.50%
Co., Ltd.
Xi’an Meiling Appliance Marketing Co.,
Subsidiary 24,440,505.33 2.45%
Ltd.
Hefei Meiling White Goods Marketing Co.,
Subsidiary 22,850,190.38 2.29%
Ltd
Chongqing Meiling Appliance Marketing
Subsidiary 20,803,565.70 2.09%
Co., Ltd.
Changchun Meiling Appliance Marketing
Subsidiary 20,583,029.09 2.07%
Co., Ltd.
Harbin Meiling Appliance Marketing Co.,
Subsidiary 20,317,245.66 2.04%
Ltd.
Taiyuan Meiling Appliance Marketing Co.,
Subsidiary 20,095,976.02 2.02%
Ltd.
Nanchang Meiling Appliance Marketing
Subsidiary 19,800,748.23 1.99%
Co., Ltd.
196
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Related Proportion in total account
Unit Amount
relationship receivable
Guangxi Meiling Home Appliances Co.,
Joint venture 16,561,127.08 1.66%
Ltd.
Kunming Meiling Appliance Marketing
Subsidiary 15,475,186.07 1.55%
Co., Ltd.
Urumqi Meiling Appliance Marketing Co.,
Subsidiary 12,893,916.81 1.29%
Ltd.
Hohhot Meiling Appliance Marketing Co.,
Subsidiary 12,763,378.81 1.28%
Ltd.
Guiyang Meiling Appliance Marketing Co.,
Subsidiary 12,585,313.60 1.26%
Ltd.
Fuzhou Meiling Appliance Marketing Co.,
Subsidiary 10,035,983.28 1.01%
Ltd.
Mianyang Meiling Appliance Marketing
Subsidiary 9,340,626.34 0.94%
Co., Ltd.
Neijiang Meiling Appliance Marketing Co.,
Subsidiary 8,723,077.95 0.88%
Ltd.
Jingzhou Meiling Appliance Marketing Co.,
Subsidiary 8,062,425.71 0.81%
Ltd.
Under same
CHANGHONGELECTRIC(AUSTRA) 5,981,267.02 0.60%
control
Hengyang Meiling Appliance Marketing
Subsidiary 5,738,753.28 0.58%
Co., Ltd.
Lanzhou Meiling Appliance Marketing Co.,
Subsidiary 4,984,758.58 0.50%
Ltd.
Xinxiang Meiling Appliance Marketing
Subsidiary 4,874,808.83 0.49%
Co., Ltd.
Zhongke Meiling Cryogenics Technology
Subsidiary 1,168,335.02 0.12%
Co., Ltd
Jiujiang Meiling Appliance Marketing Co.,
Joint venture 207,062.22 0.02%
Ltd.
Jinan Meiling Appliance Marketing Co.,
Subsidiary 140,232.94 0.01%
Ltd.
Hong Kong (Changhong) Trade Co., Ltd. Subsidiary 140,051.69 0.01%
Xuancheng Meiling Appliance Marketing
Joint venture 77,443.82 0.01%
Co., Ltd.
Under same
Mianyang Lejiayi Trading Chain Co., Ltd. 60,485.02 0.01%
control
197
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Related Proportion in total account
Unit Amount
relationship receivable
Mianyang Meiling Refrigeration Co., Ltd. Subsidiary 42,508.94 0.00%
Hefei Meiling Solar Energy Technology
Joint venture 50,010.80 0.01%
Co., Ltd.
Sichuan Changhong Electric Co., Ltd. Parent company 25,257.14 0.00%
Guangyuan Meiling Appliance Marketing
Joint venture 7,282.40 0.00%
Co., Ltd.
Total 789,492,004.64 79.21%
(13) Balance of accounts receivable in foreign currencies
Period-end Year-begin
Currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
USD 24,385,293.65 6.1787 150,669,413.88 16,662,904.98 6.2855 104,734,689.25
EUR 8.0536 43,537.51 8.3176 362,127.59
AUD 954,855.70 5.7061 5,448,502.11 851,750.61 6.5363 5,567,297.51
Total 156,117,915.99 110,664,114.35
2. Other account receivable
(1) Age structure of other account receivable
Period-end Year-begin
Book balance Bad debt provision Book balance Bad debt provision
Item
Ratio Ratio Ratio Ratio
Amount Amount Amount Amount
(%) (%) (%) (%)
Within 1 year 238,892,855.45 85.17 47,787,885.23 88.61 158,948.13 5.68
1-2 years 38,532,406.68 13.74 212,206.80 7.84 3,132,584.57 5.81 214,444.80 7.67
2-3 years 500,000.00 0.18 70,000.00 2.59 525,886.78 0.98 70,000.00 2.50
3-4 years 273,662.18 0.10 110,684.06 4.09 224,862.81 0.42 110,684.06 3.96
4-5 years 15,631.16 0.01 18,182.38 0.03
Over 5 years 2,240,133.93 0.80 2,312,552.36 85.48 2,242,133.93 4.15 2,242,133.93 80.19
Total 280,454,689.40 100.00 2,705,443.22 100.00 53,931,535.70 100.00 2,796,210.92 100.00
Net value 277,749,246.18 51,135,324.78
(2) Risk structure of other account receivable:
Period-end Year-begin
Item Bad debt
Book balance Bad debt provision Book balance
provision
198
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Rati
Ratio Ratio Ratio
Amount Amount Amount Amount o
(%) (%) (%)
(%)
Account receivable with single
significant amount and
withdrawal single item bad debt
provision
Account receivable withdrawal bad debt provision by combination
Combination 1 1,913,095.96 0.68 490,031.07 25.61 5,106,978.46 9.47 651,217.20 12.75
Combination 2 276,326,181.29 98.53 - - 46,679,563.52 86.55 - -
Combination Subtotal 278,239,277.25 99.21 490,031.07 0.18 51,786,541.98 96.02 651,217.20 1.26
Account receivable with single
minor amount but withdrawal 2,215,412.15 0.79 2,215,412.15 100.00 2,144,993.72 3.98 2,144,993.72 100.00
single item bad debt provision
Total 280,454,689.40 100.00 2,705,443.22 0.96 53,931,535.70 100.00 2,796,210.92 5.18
Net value 277,749,246.18 46,079,466.31
(3) Other account receivable with single significant amount and withdrawal bad debt provision single: Nil
(4) Withdrawal bad debt provision by account age for combination 1:
Period-end Year-begin
Account age Bad debt Bad debt
Amount Ratio (%) Amount Ratio (%)
provision provision
Within 1 year 5 3,178,962.50 5 158,948.13
1-2 years 1,414,712.00 15 212,206.80 1,429,632.00 15 214,444.80
2-3 years 200,000.00 35 70,000.00 200,000.00 35 70,000.00
3-4 years 201,243.75 55 110,684.06 201,243.75 55 110,684.06
4-5 years 85 85
Over 5 years 97,140.21 100 97,140.21 97,140.21 100 97,140.21
Total 1,913,095.96 490,031.07 5,106,978.46 651,217.20
Net value 4,455,761.26 4,455,761.26
(5) Account in combination 2
Combination Book balance
Connected amount between related parties 41,985,867.33
Loans of employee’s pretty cash 2,900,883.96
Subsidy receivable of energy-saving and civil-benefit 231,439,430.00
Total 276,326,181.29
(6) Other account receivable with single minor amount but withdrawal single item bad debt provision at
period-end
199
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Accrual
Other account receivable Book balance Bad debt provision Reasons
proportion
Individual borrowings in Un-receivable due to
2,215,412.15 2,215,412.15 100%
previous years office leaving
(7)Other account receivable of previous years that have been verified recovered in this period: Nil
(8) Switch-back of bad debt provision for other receivable in this period:
Item Book balance Switch-back Account age
Individual borrowings in
2,000.00 2,000.00 Over 5 years
previous years
(9) Other account receivable charge off in this period: Nil
(10) In the balance of other receivable at the end of this year, there is no arrearage due from
shareholders holding 5% or above voting right shares of the Company
(11) Top 5 other account receivable has RMB 271,283,275.08 in total, a 96.73% in total account receivable
at period-end
(12) Other account receivable from related parties
Item Period-end Year-begin
Wuhu Meiling Appliance Marketing Co., Ltd. 370,268.04 317,850.66
Changsha Meiling Appliance Marketing Co., Ltd. 196,470.31
Chaohu Meiling Appliance Marketing Co., Ltd. 47,880.50
Hanzhou Meiling Appliance Marketing Co., Ltd. 215,128.40 201,102.48
Jinan Meiling Appliance Marketing Co., Ltd. 247,212.93
Liu’an Meiling Appliance Marketing Co., Ltd. 120,835.20
Jingzhou Meiling Appliance Marketing Co., Ltd. 4,803.50
Nanjing Meiling Appliance Marketing Co., Ltd. 182,177.30
Nantong Meiling Appliance Marketing Co., Ltd. 128,856.97
Wuhan Meiling Appliance Marketing Co., Ltd. 78,700.15
Xi’an Meiling Appliance Marketing Co., Ltd. 192,578.88 204,966.03
Kunming Meiling Appliance Marketing Co., Ltd. 168,714.12 191,764.13
Fuzhou Meiling Appliance Marketing Co., Ltd. 116,109.62
Lanzhou Meiling Appliance Marketing Co., Ltd. 137,796.22
Bengbu Meiling Appliance Marketing Co., Ltd. 225,811.45
Beijing Meiling Appliance Marketing Co., Ltd. 257,820.79
200
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Changchun Meiling Appliance Marketing Co., Ltd. 99,467.69
Chengdu Meiling Appliance Marketing Co., Ltd. 267,334.63
Guiyang Meiling Appliance Marketing Co., Ltd. 128,606.08
Hohhot Meiling Appliance Marketing Co., Ltd. 116,365.23
Xinxiang Meiling Appliance Marketing Co., Ltd. 96,742.60
Hefei Meiling Appliance Marketing Co., Ltd. 37,228,800.08 36,730,931.63
Luohe Meiling Appliance Marketing Co., Ltd. 1,350,000.00
Jiangxi Meiling Refrigeration Co., Ltd. 496,666.88 496,666.88
Zhongke Meiling Cryogenic Technology Co., Ltd. 638,690.00
Hefei Branch of Sichuan Changhong Mold
323,595.00
Technology Co., Ltd.
Guangxi Meiling Home Appliances Co., Ltd. 2,753.04
Jiujiang Meiling Appliance Marketing Co., Ltd. 13,440.48
Xuancheng Meiling Appliance Marketing Co., Ltd. 2,150.00
Guangyuan Meiling Appliance Marketing Co., Ltd. 10,664.17
Hefei Branch of Sichuan Changhong Jijia Jinggong
116,640.00
Co., Ltd.
Total 41,985,867.33 39,740,494.74
(13) Other account receivable denominated in foreign currency: Nil
3. Long-term equity investments
(1)Classification of long-term equity investments
Item Period-end Year-begin
Long-term equity investment calculated by cost method 829,348,087.68 829,348,087.68
Long-term equity investment calculated by equity method 12,360,219.07 12,665,410.53
Total of long-term equity investment 841,708,306.75 842,013,498.21
Less: provision for impairment of long-term equity investment
Value of long-term equity investment 841,708,306.75 842,013,498.21
(2)Long-term equity investments calculated by cost method and equity method
Decreas
Shareho Voting Increase e
Cash
lding right Initial amount Amount at during during Amount at
Invested unit the dividend for
ratio ratio year-begin the period-end
Period this Period
(%) (%) Period
Calculation by cost
method
201
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Decreas
Shareho Voting Increase e
Cash
lding right Initial amount Amount at during during Amount at
Invested unit the dividend for
ratio ratio year-begin the period-end
Period this Period
(%) (%) Period
Zhongke Meiling
Cryogenic
70.00 70.00 42,000,000.00 42,000,000.00 42,000,000.00
Technology Co.,
Ltd.
Jiangxi Meiling
Refrigeration Co., 90.00 100.00 45,000,000.00 45,000,000.00 45,000,000.00
Ltd.
Mianyang Meiling
Refrigeration Co., 90.00 100.00 45,000,000.00 95,000,000.00 95,000,000.00
Ltd.
Hefei Meiling
Appliance 99.00 100.00 9,900,000.00 54,900,000.00 54,900,000.00
Marketing Co., Ltd.
Sichuan Changhong
Air Conditioner 100.00 100.00 305,600,437.79 305,600,437.79 305,600,437.79
Co., Ltd.
Zhongshan
Changhong 90.00 90.00 76,256,419.37 76,256,419.37 76,256,419.37
Appliance Co., Ltd.
Huishang Bank Co.,
0.13 0.13 5,000,000.00 5,000,000.00 5,000,000.00 1,073,757.30
Ltd.
Hefei Meiling
Packing Products 48.28 100.00 25,055,600.00 12,961,230.52 12,961,230.52
Co., Ltd.
Hefei Meiling
Group Holding Co., 100.00 100.00 113,630,000.00 113,630,000.00 113,630,000.00
Ltd.
Jiangxi Meiling
98.75 100.00 79,000,000.00 79,000,000.00 79,000,000.00
Appliance Co., Ld.
Subtotal 746,442,457.16 829,348,087.68 829,348,087.68 1,073,757.30
Calculation by
equity method
Hefei Xingmei 516,596.0
Assets Management 48.28 48.28 12,094,369.48 12,665,410.53 211,404.54 516,596.00 12,360,219.07
Co.,Ltd. 0
Subtotal 12,094,369.48 12,665,410.53 211,404.54 516,596.00 12,360,219.07
Total 758,536,826.64 842,013,498.21 211,404.54 516,596.00 841,708,306.75 1,590,353.30
(3)Investment in associates
Current
Total assts at Total liability at Total net assets Current net
Invested unit operation
period-end period-end at period-end profit
income
Hefei Xingmei Assets
29,640,336.58 1,874,278.57 27,766,058.01 1,894,101.00 437,871.87
ManagementCo.,Ltd.
4. Operation income, operation cost
202
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same
Item Current amount
period of last year
Main business revenue 3,327,862,943.99 3,231,307,780.05
Other business revenue 501,858,955.15 389,731,362.59
Total 3,829,721,899.14 3,621,039,142.64
Main business cost 2,729,442,428.96 2,689,101,247.09
Other business revenue 491,984,084.15 380,915,606.24
Total 3,221,426,513.11 3,070,016,853.33
(1) Main business-by products
Current amount Amount at same period of last year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator
3,267,534,599.48 2,677,322,687.43 3,170,841,768.18 2,637,049,040.26
and freezer
Washing
60,328,344.51 52,119,741.53 59,699,998.53 50,861,363.20
machine
Other 766,013.34 1,190,843.63
Total 3,327,862,943.99 2,729,442,428.96 3,231,307,780.05 2,689,101,247.09
(2) Main business-by regions
Current amount Amount at same period of last year
Regions Operation
Operation income Operation cost Operation cost
income
Domestic income 2,786,757,896.82 2,214,865,555.59 2,802,835,752.21 2,263,563,636.36
Export income 541,105,047.17 514,576,873.37 428,472,027.84 425,537,610.73
Total 3,327,862,943.99 2,729,442,428.96 3,231,307,780.05 2,689,101,247.09
(3) Top five clients of the Company owe income in sales of RMB 556,691,174.94, a 14.54% in total
operation income.
5. Investment income
(1) Sources of investment income
Amount at same
Item Current amount
period of last year
Long-term equity investment income by cost method 1,073,757.30 1,073,757.30
Long-term equity investment income by equity method 211,404.54 175,797.67
203
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same
Item Current amount
period of last year
Investment income from disposal of long-term equity
investment
Investment income from period of holding financial assets
available for sale
Investment income from disposal of financial assets
available for sale
Accrued income from disposal of subsidiaries from cost
method to equity method
Total 1,285,161.84 1,249,554.97
(2) Long-term equity investment income by equity method
Amount at same
Item Current amount
period of last year
Hefei Xingmei Assets Management Co.,Ltd. 211,404.54 175,797.67
6. Supplementary information for cash flow statement of parent company
Amount at same period
Item Current amount
of last year
1. Adjust net profit to cash flow for operational activities:
Net profit 98,531,870.35 110,870,938.47
Add: provision for depreciation of assets 2,555,031.25 -24,334,130.41
Depreciation of fixed assets, consumption of oil gas
42,442,072.93 34,970,754.18
assets and depreciation of productive biological assets
Amortization of intangible assets 5,741,858.39 12,245,773.41
Amortization of long-term retained expense -
Loss from disposal of fixed assets, intangible assets and
2,727,898.46 -81.64
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is
5,279,309.14
listed with “-”)
Loss from change of fair value(gain is listed with “-”) -
Financial expense (gain is listed with “-”) -10,444,310.31 -6,305,853.31
Investment loss (gain is listed with “-”) -1,285,161.84 -1,249,554.97
Decrease of deferred income tax assets (increase is listed
2,360,925.05 -795,809.16
with “-”)
Increase of deferred income tax liabilities (decrease is
-
listed with “-”)
Decrease of inventories (increase is listed with “-”) 24,083,024.29 498,749,442.14
204
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same period
Item Current amount
of last year
Decrease of operational accounts receivable (increase is
-602,061,581.16 -1,193,687,338.13
listed with “-”)
Increase of operational accounts payable (decrease is
250,140,718.90
listed with “-”) 435,940,665.35
Others -
Net cash flow arising from operation activities 592,292.76 -314,115,831.38
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 1,710,526,818.81 789,679,272.06
Less: Balance of cash at period-begin 1,235,992,818.90 1,045,235,918.61
Add: Balance of cash equivalent at period-end -
Less: Balance of cash equivalent at period-begin -
Net increase in cash and cash equivalent 474,533,999.91 -255,556,646.55
XVI. Approval of the financial report
The financial report was approved for disclosure by the Board dated 15 August 2013
205
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Supplementary information for financial statement
(I) Non-operational gains and losses for the Period
Non-recurring gains and losses regulated by Explanation Announcement of Information Disclosure
on Stock Issuance Enterprise No.1—Non-recurring gains/losses (2008) from CSRC:
Amount at same
Item Current amount period of last Note
year
Refer to
Non-operatin
Gains and losses from disposal of non-current assets -3,166,097.14 -5,181,933.89 g Income and
Expenditure
for details
Tax refund or mitigate due to examination-and-approval beyond power
or without official approval document or accident
Refer to
Government subsidy recorded in current gains and losses 8,284,145.67 4,237,836.91 Non-operatio
n revenue
Capital occupancy expense, collected from non-financial enterprises
and recorded in current gains and losses
Income from the exceeding part between investment 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 assets
Gains and losses from assets under trusted investment or management
Various 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 arising 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 assets and tradable financial liabilities, and investment
income from disposal of tradable 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
206
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Amount at same
Item Current amount period of last Note
year
Refer to
Non-operatin
Other non-operating income and expenditure except for the
435,291.84 -102,072.38 g Income and
aforementioned ones
Expenditure
for details
Other gains and losses items complying with definition for non-current
gains and losses
Subtotal 5,553,340.37 -1,046,169.36
Affect on income tax 235,081.59 38,231.24
Affect on minority equity(after taxation) 267,380.74 -302,656.89
Total 5,050,878.04 -781,743.71
(II) ROE and EPS
In accordance with requirement of the Information Disclosure Compiling of Public Listed
Companies No.9-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 Perieriod are as follow:
EPS
Profit during the report period Weighted average ROE
Basic EPS Diluted EPS
Net profit attributable to shareholders of
parent company 4.49% 0.1777 0.1777
Net profit attributable to shareholders of
parent company after deduction of 4.32% 0.1711 0.1711
non-recurring gains and losses
(III)Abnormal condition of major financial statement items and explanation for change
1. Item of consolidated balance sheet at period-end with major changes comparing with year-beginning:
Item Period-end Year-begin Changes Note
Note receivable 2,490,026,671.99 1,738,725,417.01 43.21% 1
Account receivables 1,150,796,995.41 753,762,080.84 52.67% 2
Account paid in advance 160,540,856.24 49,414,835.51 224.88% 3
Other account receivable 250,578,232.84 31,288,336.44 700.87% 4
Short-term borrowings 459,268,050.00 45,456,805.14 910.34% 5
Account payable 2,339,285,831.36 1,462,293,958.34 59.97% 6
Salary payable 76,205,784.37 137,325,501.89 -44.51% 7
Retained profit 521,435,836.67 385,744,261.05 35.18% 8
Note 1: Note receivable increased by 75,130.13 Million yuan as compared to year-begin with 43.21% up, mainly
because bank acceptance received in peak seasons increased, and which has not yet due for collection in the
Period.
207
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Note2: Account receivables increased by 39,703.49 Million Yuan as compared to year-begin with 52.67% up,
mainly because sales increased in the Period, resulted by the time different of sales and amount collected.
Note 3: Account paid in advance increased by 11,112.60 Million Yuan as compared to year-begin with 224.88% up,
mainly because prepared for the coming peak season, account paid in advance for more procurement increased.
Note 4: Other account receivable increased by 21,928.99 Million Yuan as compared to year-begin with 700.87% up,
mainly because the subsidy of energy-saving and civil-benefit has not collected yet.
Note 5: Short-term borrowings increased by 41,381.12 Million Yuan as compared to year-begin with 910.34% up,
mainly because the short-term borrowings from parent company increased.
Note 6: Account payable increased by 87,699.19 Million Yuan as compared to year-begin with 59.97% up, mainly
because prepared for the coming peak season, more procurement increased.
Note 7: Salary payable decreased by 6,111.97 Million Yuan as compared to year-begin with 44.51% down, mainly
because the salary for December which was accrual for year of 2012 and annual bonus were paid in the Period.
Note 8: Retained profit increased by 13,569.16 Million Yuan as compared to year-begin with 35.18% up, mainly
because new profit increased in the Period.
2. Item of consolidated profit statement with major changes comparing with last year’s:
Item Current amount Amount at same Changes Note
period of last year
Operation tax and surcharge 58,543,334.84 43,172,959.76 35.60% 1
Assets impairment loss 22,012,431.67 37,119,691.31 -40.70% 2
Investment income 751,289.68 260,963.91 187.89% 3
Non-operation revenue 9,017,138.67 4,579,649.44 96.90% 4
Non-operation expenses 3,463,798.30 5,625,818.80 -38.43% 5
Income tax expense 36,091,305.08 13,865,961.02 160.29% 6
Note 1: Operation tax and surcharge increase 1,537.04 Million Yuan over a year earlier with 35.60% up, mainly
because the accrual increased in the Period and disposal fund for scrap electronic products paid in the Period
while no such charge at last year.
Note 2: Assets impairment loss decrease 1,510.73 Million Yuan over a year earlier with 40.70% down, mainly
because inventory turnover ratio growth in the Period and the inventory with long period in stock decreased.
Note 3: Investment income increase 49.03 Million Yuan over a year earlier with 187.89% up, mainly because
losses from part of the joint venture decreased y-o-y and profit from part of the joint venture growth y-o-y.
Note 4: Non-operation revenue increase 443.75 Million Yuan over a year earlier with 96.90% up, mainly because
the government subsidy income recognized in the Period increased y-o-y.
208
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2013 to 31 December 2013
(Unless otherwise specified. RMB for record in the statement)
Note 5: Non-operation expenses decrease 216.20 Million Yuan over a year earlier with 38.43% down, mainly
because disposal of non-current assets decreased in the Period.
Note 6: Income tax expense increase 2,222.53 Million Yuan over a year earlier with 160.29% up, mainly because
the taxable amount increased in the Period.
XVII. Approval of the financial report
The financial report was approved for disclosure by the Board dated 15 August 2013
209
HEFEI MEILING CO., LTD. SEMI-ANNUAL REPORT 2013
Section IX. Documents Available for Reference
I. Text of semi-annual report with the signature of the Chairman;
II. Accounting statement carrying the signatures and seals of the Chairman, CFO (financial
administrator) and person in charge of accounting organ;
III. Originals documents of the Company and manuscripts of public notices that disclosed in the
newspapers designated by CSRC in the report period;
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: Liu Tibin
Hefei Meiling Co., Ltd.
16 August 2013
210
