HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
HEFEI MEILING CO., LTD
SEMI-ANNUAL REPORT 2014
August 2014
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 (Finance employee in charge) Mr.
Zhang Xiaolong and Mr.Tang Bin, person in charge of accounting organ hereby confirm that the Financial Report
of Semi-Annual Report 2014 is authentic, accurate and complete.
The Financial Report of Semi-Annual Report 2014 of the Company had not been audited by CPAs.
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 ............................................................................................. 27
Section VI. Changes in Shares and Particulars about Shareholders ................................. 76
Section VII. Preferred Stock .............................................................................................81
Section VIII Particular about Directors, Supervisors, Senior Executives and Employees 82
Section IX. Financial Report ............................................................................................84
Section X. Documents Available for Reference ............................................................ 211
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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. (LLP.)
China Merchants Securities Refers to China Merchants Securities Co., Ltd.
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Jiangxi Meiling Electric Refers to Jiangxi Meiling Electrical Co., Ltd.
Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd.
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., LTD
Exp.Company Refers to Sichuan Service Exp. Appliance Service Chain Co., Ltd.
Changhong Finance Company Refers to Sichuan Changhong Group Finance Co., Ltd.
Minsheng Logistics Refers to Changhong Minsheng Logistics 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 2014
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
Contact adds. No. 2163, Lian Hua Road, Economic and Technology Development 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
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 2013.
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 2013.
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 2013.
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 2014
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
Same period of last Increase/decrease in
Current period
year this report y-o-y
Operating revenue (RMB) 6,344,389,052.17 5,951,444,575.32 6.60%
Net profit attributable to shareholders of
159,106,275.83 135,691,575.62 17.26%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 143,657,925.11 130,640,697.58 9.96%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-272,408,725.76 -143,298,557.77 -90.10%
activities(RMB)
Basic earnings per share (RMB/Share) 0.2083 0.1777 17.22%
Diluted earnings per share (RMB/Share) 0.2083 0.1777 17.22%
Weighted average ROE (%) 4.64% 4.49% 0.15%
Increase/decrease in
End of current period End of last period this report-end over
that of last period-end
Total assets (RMB) 10,170,327,813.84 8,522,171,841.34 19.34%
Net assets attributable to shareholder of
3,346,960,472.08 3,187,330,516.90 5.01%
listed company(RMB)
Total share capital of the Company up to a trading day before disclosure:
Total share capital of the Company up to a trading
763,739,205
day before disclosure (Share)
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 2014
II. Difference of the accounting data under accounting rules in and out of China
1. 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
The Company has no 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) in reporting period.
2. 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 at Amount at
Amount in last period
period period-end period-begin
Chinese GAAP 159,106,275.83 135,691,575.62 3,346,960,472.08 3,187,330,516.90
Items and amount adjusted by foreign accounting rules
—— —— —— —— ——
Foreign accounting rules 159,106,275.83 135,691,575.62 3,346,960,472.08 3,187,330,516.90
The Company has no difference of the net profit and net assets disclosed in financial report,
under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting
Principles) in reporting period.
3. Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □Not applicable
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.
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset
Found in ―Non-operating
(including the write-off that accrued for impairment of 915,066.83
expenditure‖
assets)
Governmental subsidy reckoned into current
gains/losses (not including the subsidy enjoyed in quota Found in ―Non-operating
9,753,687.37
or ration according to national standards, which are income‖
closely relevant to enterprise’s business)
Gain/loss from debt restructure 71,412.91 Without payment
Other non-operating income and expenditure except for Found in ―Non-operating
6,844,812.13
the aforementioned items expenditure‖
Impact on income tax 2,114,000.60 ——
Impact on minority shareholders’ equity (post-tax) 22,627.92 ——
Total 15,448,350.72 --
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
In reporting period, the Company has no particular about 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.
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Section IV. Report of the Board of Directors
I. Summary
Chinese economy operated in stable pace during past 1st half year though decline pressure and hardness still
exist. Growth rate of domestic GDP has been under 8% for 10 seasons since 1st season of 2012. Also the overall
situation tended to decline. Growth rate of amount of import & export, fixed assets investment, retail slowed down
at the same time. Globally, clashes prevail among interior areas. Terrorism threatened the global stability. Besides,
the rocket Internet development changed business models and competition situation of various traditional
industries. Giants and rules collapsed. Refrigerator sales fell against the 1st half-year of last year along with badly
shrinking traditional wholesale channels. While the online market expanded. Brands competition intensified
which urges the products upgrading and transition. Products with frequency and large volume lead the popularity
of the market.
Therefore, the Board of Directors raised the ―Meiling Dream‖ which is in guidance of ―Double 3 & 1
Center‖ and operating strategy of ―Products Priority, Efficiency Improved, Foundation Strengthened, and
Capability Built‖. Thus we promoted products with frequency and large volume; put effort in branding,
production, operation and marketing capability, facing the unfavorable factors brought by exterior environment.
Only here competition and business stability could be achieved. In reporting period, business operation performed
well. Operation income was accomplished at 63.44 billion Yuan, with increase of 6.60 % on a y-o-y basis. Net
profit attributable to shareholders of listed company reached 15,910.63 million Yuan, with a y-o-y increase of
17.26%.
II. Analysis on major operations
(I) Summary
Shows no difference with the summary disclosed in Report of the Board of Director
□Yes √No
For the period from January to June 2014, business segment of refrigerator and freezing box realized
operating revenue of 35.50 billion Yuan approximately, with a decrease of 4.01% y-o-y. According to CMM,
Meiling refrigerators occupied market share of 9.08% in domestic market in terms of retail sales for the period
from January to June 2013, ranking the 4th position in terms of market share of single brand; Meiling refrigerators
accounted for 9.30% of the market share for the period from January to June 2014, ranking the 6th position in
terms of market share of single brand.
For the period from January to June 2014, business segment of air conditioner realized operating income of
23.42 billion Yuan approximately, with an increase of 25.61% y-o-y. For the period from January to June 2014,
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
business segment of washing machine realized income of 8,746.54 million Yuan approximately, with an increase
of 25.70% y-o-y.
(II) Year-on-year changes of main financial data
In RMB
Y-o-y
Same period of last
Current period increase/d Reasons for changes
year
ecrease
Operation revenue 6,344,389,052.17 5,951,444,575.32 6.60% ——
Operation cost 4,780,495,721.56 4,526,354,103.23 5.61% ——
Sales expenses 1,156,472,220.52 1,049,206,682.51 10.22% ——
Administrative
194,547,455.17 169,954,161.54 14.47% ——
expenses
Financial cost -43,840,298.90 -36,240,925.89 -20.97% ——
Income tax expense 36,794,783.31 36,091,305.08 1.95% ——
R&D expenses 215,494,155.61 229,725,760.61 -6.20% ——
Net cash flow arising
The amount paid for prepare material in
from operation -272,408,725.76 -143,298,557.77 -90.10%
peak seasons increased in the Period
activities
The remove loss arising from early
release of ―House Lease Contract‖ was
Net cash flow arising
paid to Mianyang Meiling Refrigeration
from investment 33,272,248.97 -9,754,481.45 441.10%
by Sichuan Changhong Minsheng
activities
Logistics and the compensation received
due to early termination option
Net cash flow arising
Short-term loans of the parent company
from financing 718,848,755.01 402,848,863.38 78.44%
increased in the period.
activities
Net increase of cash The same as ―Net cash flow arising from
477,017,942.02 255,142,493.78 86.96%
and cash equivalent financing activities‖
The Company’s sales scale increased in
Account receivables 1,516,249,176.95 855,264,087.13 77.28%
busy season in the period.
Expense on Research The Company increased investment in
16,299,052.77 9,516,070.34 71.28%
and Development R&D in period.
Short-term loans of the parent company
Short-term loans 858,594,659.12 66,433,079.86 1192.42%
increased in the period.
Salary for employee accrued in 2013 and
Wage payable 109,744,541.19 168,217,307.27 -34.76% year-end bonus have contributed in the
Period
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Sales increased and VAT retained in the
Taxes payable 134,260,368.85 -4,920,046.33 2828.84%
Period
Other account The expenses occurred without settled
1,237,932,500.14 914,983,315.18 35.30%
receivable increased in the Period
Part of the long-term loans due within
Non-current liabilities
61,123,985.90 119,256,114.30 -48.75% one year was paid by parent company in
due within 1 year
Period
Balance difference of
The changes of foreign currency from
foreign currency -1,347,759.88 -1,939,397.56 30.51%
overseas subsidiary in the Period
translation
The Company’s account receivable
Assets impairment loss 30,071,923.98 22,012,431.67 36.61%
increased in busy season in period.
Investment There was dividend received from
income(Loss is listed -784,297.22 751,289.68 -204.39% Huishang Bank in last period while no
with ―-‖) such income occurred in the Period
Including: Investment
income on affiliated Part of the affiliated enterprise losses in
-784,297.22 -593,240.24 -32.21%
company and joint the Period.
venture
The contingent liabilities compensation
Non-operation revenue 20,397,907.16 9,017,138.67 126.21% was received by parent company in the
Period from Xingtai Holding
Including: Disposal
Disposal of non-current asset decreased
loss of non-current 554,394.53 3,304,049.48 -83.22%
in the period.
asset
Write-back of tax Tax rebate received in the Period
65,296,987.56 48,652,719.99 34.21%
received increased on a y-o-y basis
Parent company received energy-saving
Other cash received people-benefit subsidy at same period of
concerning operating 8,804,431.58 71,908,913.97 -87.76%
activities last year while no such amount occurred
in the Period
The deferred taxes for year of 2012 paid
at same period of last by Sichuan
Taxes paid 196,573,266.91 313,635,084.47 -37.32%
Air-conditioner and VAT retained at end
of 2013
Cash received from
- 1,685,337.19 -100.00% The same as ―Investment income‖
investment income
Net cash received from
disposal of fixed, The same as ―Net cash flow arising from
41,112,847.21 593,337.20 6829.09%
intangible and other investment activities‖
long-term assets
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Cash paid for Purchase minority stake of part of the
1,097,791.00 234,942.68 367.26%
investment subsidiaries in the period.
Cash received from
1,059,138,910.42 514,641,824.68 105.80% Short-term loans of the parent company
loans
increased in the period.
Cash paid for settling Short-term loans of the parent company
332,556,137.54 108,788,409.39 205.69%
debts paid in the period.
Cash paid for dividend Cash paid for loans interest by subsidiary
and profit distributing 4,760,549.52 3,004,551.91 58.44% Zhongshan Changhong increased y-o-y
or interest paying in the period.
Other cash paid
Equity of minority shareholders of part
concerning financing 2,973,468.35 - -
of the subsidiary decreased in the Period
activities
IV. Influence on cash
and cash equivalents Rate in foreign currency changed in the
-2,694,336.20 5,346,669.62 -
due to fluctuation in period.
exchange rate
(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
In reporting period, the Company allocated annual operation work according to the 2014 operation principles,
arranged the following works:
The Company implemented strategic innovation, transition and upgrading, in principle of intelligence,
constantly promoted the ―Double 3‖ to the ―Double 3 & 1 Center‖. 1 Center refers to intelligence; Double 3 refers
to 3 core strategies including products, talents and cost as well as 3 important statics including market, products
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
and internationalism. In accordance with the strategic allocation, in Feb 2014, the Company issued CHiQ
refrigerator taking Cloud image discern technology as the core, leading the openness of intelligence for the whole
industry. In Mar, the Company issued CHiQ conditioner based on perception of the human body condition,
refining the conditioner. Subsequent marketing of CHiQ refrigerator and CHiQ conditioner improved brand &
product image of the Company, laying foundation for the future of the Company.
(1) Products Priority
The Company significantly promoted strategy of products of intelligence and frequency. In reporting period,
couples of CHiQ were marketed. Cloud image discern platform as well as database of menu and price has been
formally applied. In aspect of frequency technology and products research, we promoted 0.1-degree frequency
products. The Company valued the improvement of products quality, strengthened quality management system,
constantly perfected quality appraisal system and quality data system, intensified quality appraisal. Thus quality
improved during reporting period.
(2) Improving Efficiency
In reporting period, average efficiency boosted as a result manufacture efficiency improved through
technology and management improvement, sales system boosted through market expanding and expenditure
control, and administration department boosted through human resource plan. The Company strengthened
effective management on asset and inventory, accelerated the control on accounts receivable and financing income
from various financing channels. In reporting period, both material and money efficiency improved.
(3) Solid the Foundation
The Company set performance appraisal system with clear goal, countable standards and performance
orientation. Surrounding the value chain management, we conducted overall budget management. We
comprehensively carried out value creation, optimized value chain thus reduce delay. We perfected talent and
team building system and constantly improved competitiveness of the Company.
(4) Building Capacity
In aspect of domestic sale, the Company improved product, terminal and operation construction. In aspect of
export, we improved rapid payment with international level. In aspect of internal control, the Company carried out
sample management activity, conducted strategic innovation and transition. We strived to improve
competitiveness surrounding intelligence.
III. Constitution of main business
In RMB
Increase or Increase or Increase or
Gross decrease of decrease of decrease of
Operating revenue Operating cost profit operating operating cost gross profit
ratio revenue over over same ratio over same
same period period of last period of last
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
of last year year year
According to industries
Manufacture of
household 5,979,447,749.32 4,454,738,053.68 25.50% 6.17% 4.93% 0.88%
appliances
According to products
Refrigerators,
3,549,885,533.16 2,643,939,925.00 25.52% -4.01% -4.54% 0.42%
freezers
Air
2,342,096,863.45 1,740,943,218.35 25.67% 25.61% 22.94% 1.62%
conditioning
Washing
87,465,352.71 69,854,910.33 20.13% 25.70% 17.72% 5.41%
machine
Others 85,743,771.01 64,327,725.29 24.98% 21.81% 25.03% -1.93%
According to region
Domestic 5,079,538,600.53 3,625,288,052.20 28.63% 4.33% 2.96% 0.95%
Foreign 985,652,919.80 893,777,726.77 9.32% 18.22% 15.22% 2.36%
IV. Core competence analysis
(I)Company strength
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 brand listed as the most valuable brands in the PRC. In 2014, the Company release CHiQ intelligent
refrigerator and air- conditioner in succession, and opened the general of white goods intelligent. Meanwhile, the
Company strengthens frequency conversion technology and product’s R&D, actively promote 0.1o frequency
conversion products, proportion of frequency conversion products improve continually.
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. As for product development,
combine with technology development trend and characteristics of demand from upgrades in consumers, the
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Company, in 2014, will focus on development of CHiQ intelligent products and frequency conversion products
with obvious upgrading in product structure.
3. Operation capacity
The Company actively learned from certain outstanding enterprises, carried out superior management
activity and enhanced its fundamental management. The Company established healthy internal control system,
strengthened management control, promoted standardized management through information and prevented
operation risks. In 2014, the Company carried out enhancements in personnel, capital and materials; carry out
strategy innovation and transformation and upgrading, continues to hoisting capacity of internal management, and
enhance the competitiveness of enterprises.
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.
(II) Potential risks and countermeasures
1. Macro economic risks
Domestic economy growth still continues to slow down in the next half year, real estate market continue to
be controller and the demographic dividend will disappear gradually. 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
Termination of go-to-country policies and energy-saving people-beneficial project also affected products
upgrades and market sales. Lack of new simulative policies makes the future development of home appliances
enterprises uncertain and results in increasing operating risks.
3. Crash from new business models
New business models and products prevail constantly, traditional corporations will be faced immense risk if
they don’t prepare or are unable to react to the market change. The Company may lose opportunity if we can’t
strengthen our edge even though we have taken the priority for now.
4. Increase of labor cost
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. The future market turned to make aggressive growth instead of large disc growth, competition would
be more furious.
5. Labor cost ascend
With gradual disappear of population bonus and popularity of high-end education, social problem such as
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HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
―labor absence‖ and‖recruit hardness‖ surged. Recruitment for 1st class operator becomes difficult. Home
appliance belongs to labor industry especially the operators. Recruitment hardness brought the increase of cost.
Faced with these risks, the Company raises awareness of risk prevention on the one hand, layouts in advance
in product, technology, market, in particular to further optimize the production process, improve the ratio of
production automation and labor productivity, reasonably control raw materials and finished goods inventory, as
well as improve human resources planning. Meanwhile, the Company will adhere to the "Double 3 & 1 Center"
strategy under the "Meiling Dream" guidelines and through strategic innovation, transformation and upgrading,
implement the "Products Priority, Efficiency Improvement, Foundation Solid, Capacity Building", to carry out
human efficiency, material efficiency, money-efficient, and constantly improve the export market share and
enhance its overall competitiveness, in order to achieve sustainable development.
(III) Operating countermeasures for the second half year
The Company will continue to implement "Products Priority, Efficiency Improvement, Foundation Solid, and
Capacity Building" for the second half year, thus improve ability to develop domestic and international markets in
order to cope with the adverse macroeconomic environment and industry situation.
1. Adhere to the principle of "Products Priority, Efficiency Improvement, Foundation Solid, and Capacity
Building"
We’ll continue to promote strategy of two products with intelligence and frequency, focusing on the
promotion of CHiQ smart refrigerator, smart air conditioning and 0.1 degrees inverter refrigerator. We’ll continue
to improve 3 efficiency respectively in aspects of person, material and money, thus improve operational efficiency;
also we’ll constantly improve the operating system, strengthen the development of qualified personnel;
continuously improve marketing and operating capacity and terminal sales capacity to ensure market share
growth.
2. Efforts to develop domestic and international markets
On the domestic market, we’ll adhere to reform and innovation and strong focus on terminal market,
focusing on enhancing marketing capabilities and terminal sales ability, focusing on key markets, improving retail
sales, to achieve rapid growth on new channels; insist on low-margin but large scale and reduced cost on overseas
market thus creating a profit business, focusing on key customers and key markets, fostering strategic products,
strengthening overseas personnel training.
V. Investment analysis
(I). Situation of equity investment outside
1. Situation of investment outside
√ Applicable □Not applicable
Investment outside
Investment in the same period of last
Investment in the reporting (RMB) Changes
year’s (RMB)
16
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
40,950,000 0 100%
Invested company
Equity proportion in invested
Name Main business
company for Listed company
Air-conditioner, washing machine,
Mianyang Meiling Software refrigerator, freezer etc. household Direct and indirect 100%
Technology Co., Ltd. appliances control, intelligent shareholding
software R&D sales
Production of air-conditioner,
refrigerator freezer, heat pump,
heater, air-conditioner fans, electric
Zhongshan Changhong Electronic Direct and indirect 100%
fans, humidifier, electric heater and
Co., Ltd. shareholding
accessories of the above products,
domestic and foreign sales of the
products
2. Holding equity of financial enterprise
√ Applicable □Not applicable
Proportio
Proportion Gains/los
Initial Shares held Shares n of Book value
of shares ses in
investment at held at shares at Accountin Resource
Name Type held at report
capital period-begi period-en held at period-end g items s
period-begi period
(RMB) n (Share) d (Share) period-en (RMB)
n (RMB)
d
Long-ter
Huishan Initial
Commer m equity
g Bank 5,000,000.00 10,737,573 0.0972% 10,737,573 0.0972% 5,000,000.00 0 investme
cial bank investmen
Co., Ltd. nt
t
Total 5,000,000.00 10,737,573 -- 10,737,573 -- 5,000,000.00 0 -- --
3. Security investment
□ Applicable √ Not applicable
No security investment in Period.
Explanation on equity of other listed company held
□ Applicable √ Not applicable
The Company had no equity of other listed company held in Period.
17
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
(II) Trust financing, derivative investment and trust loans
1. Trust financing
□ Applicable √ Not applicable
No trust financing in Period.
2. Derivative investment
□ Applicable √ Not applicable
No derivative investment in Period.
3. Trust loans
□ Applicable √ Not applicable
No trust loans in Period.
(III) Actual usage of raised capitals
1. General usage of raised capital
√ Applicable □Not applicable
In 10 thousand Yuan
Total raised capitals 117,795.4320
Total raised capital invested in reporting period 1,874.5175
Total accumulative raised capital invested 86,679.4332
Total raised fund for changes its usage area in report period 0
Total accumulative raised fund for changes its usage area 0
Proportion of total accumulative raised fund for changes its usage area 0
Explanation on general usage of raised capital
In 2010, the Company implemented private placement of A-share, fund-raising amounting as 1199.99982
million Yuan in total, net amount of fund-raising was 1177.95432 million Yuan after issuance cost 22.0455
million Yuan (underwriting and sponsor fee 20.5 million Yuan included) deducted.
In 2013, the three construction projects with fund-raising investment have completed and reaching the
design capacity, that is ―Athena Luxury refrigerator production base‖, ―Freezer expansion project‖ and
―Expansion project of environmental and energy-saving refrigerators‖, meanwhile, ―working capital
supplementation‖ project implemented and recently, the Company has no other projects that suitable for
investment by fund-raising. According to the operation requirement of the Company, under the premise of no
18
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
impact on the fund-raising investment project implementation, balance of raising funds 284.440959 million
Yuan (including interest 34.832977 million Yuan) up to 30 September 2013 and later interest are supplying the
working capital of the Company permanently. The Company actually withdrawal 289.091987 million Yuan for
working capital supplementation permanently up to 30 June 2014.
Up to the 30th of June 2014, the Company actually used 866.794332 million Yuan accumulatively in
fund-raising, balance of fund-raising accounting as 63.025872 million Yuan (including 1,369,042 Yuan undrawn
used for working capital supplementation, and totally 61,656,830 Yuan ready for contract payment and quality
assurance). More details are:
Athena Luxury refrigerator production base project: total investment amounting to 528508471 Yuan in total
after savings deducted. Up to 30th of June 2014, the project accumulatively invested 493667938 Yuan, balance
of fund-raising was 35551089 Yuan, including 34840533 Yuan ready for contract payment and quality assurance
and 710556 Yuan undrawn used for working capital supplementation permanently.
Capacity expansion project for freezer: the project owns total investment of 251.883547 million Yuan after
savings deducted. Up to 30 June 2014, the project have accumulative investment of 225.06725 million Yuan,
balance at fund-raising account was 27.474783 million Yuan, including amount ready for payment and quality
assurance 26.816297 million Yuan and 658,486 Yuan without extract used for supply current capital
permanently.
2. Commitments of raised capital
□ Applicable √ Not applicable
Up to the 30th of September 2014, the three construction projects with fund-raising investment
have completed and reaching the design capacity, that is ―Athena Luxury refrigerator production
base‖, ―Freezer expansion project‖ and ―Expansion project of environmental and energy-saving
refrigerators‖, meanwhile, ―working capital supplementation‖ project implemented.
3. Changes of raise capital projects
□ Applicable √ Not applicable
No change of raise capital projects in Period.
4. Project with fund raised
Introduction of fund raised project Disclosure date Disclosure index
In 2013, the three construction projects with
Juchao Website
fund-raising from private placement of A-share in 2010
（http://www.cninfo.com.cn）‖Spec
have completed and reaching the design capacity, that is
ial report on fund-raising deposit and
―Athena Luxury refrigerator production base‖, ―Freezer 2014-3-28
utilization for year of 2013 under the
expansion project‖ and ―Expansion project of
name of Hefei Meiling Co., Ltd.‖
environmental and energy-saving refrigerators‖,
(Notice No.: 2014-021)
meanwhile, ―working capital supplementation‖ project
19
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
implemented
(IV) Main subsidiary of the Company and stock jointly company analysis
√ Applicable □Not applicable
1. Subsidiary and stock jointly enterprise of the Company
20
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Registered
capital (10 Operation revenue Operation profit
Name Type Industry Main products or service Total assets (RMB) Net assets (RMB) Net profit (RMB)
thousand (RMB) (RMB)
Yuan)
Air-conditioner, washing
Mianyang
machine, refrigerator, freezer
Meiling Software Subsidiar Software
etc. household appliances 500 11,946,941.87 4,961,219.38 5,646,290.59 -236,988.39 -38,780.62
Technology Co., y R&D sales
control, intelligent software
Ltd.
R&D sales
Zhongke Meiling
Low-temperature Subsidiar Manufacturi
Deep-freeze refrigerator, icebox 6,000 111,269,352.50 87,939,352.24 31,239,460.06 3,440,247.13 3,578,214.86
Technology Co., y ng
Ltd.
Jiangxi Meiling Sales and production of
Subsidiar Manufacturi
Refrigeration Co., refrigerator 5,000 203,129,376.43 85,052,686.07 238,312,716.42 810,326.71 1,746,335.82
y ng
Ltd.
Mianyang Sales and production of
Meiling Subsidiar Manufacturi refrigerator
10,000 160,056,587.91 98,167,581.08 149,907,703.44 2,004,276.14 1,993,044.76
Refrigeration Co., y ng
Ltd.
Sichuan Sales and production of
Changchun Subsidiar Manufacturi air-conditioner
20,000 2,072,260,609.97 538,519,544.09 2,012,835,624.70 68,801,030.05 61,246,648.35
Air-conditioner y ng
Co., Ltd.
Zhongshan Subsidiar Manufacturi Sales and production of
12,000 586,171,861.39 148,655,034.40 492,220,957.54 9,606,824.58 9,516,367.28
Changhong y ng air-conditioner
21
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Electric Co., LTD
Hefei Meiling Sales of refrigeration appliance,
Electronic air-conditioner, washing
Subsidiar Manufacturi
Appliance machine and general 5,500 800,014,309.91 -129,421,032.00 2,430,103,130.97 -8,234,230.94 -8,253,847.96
y ng
Marketing Co., merchandise
Ltd.
Manufacture of washing
machine, plastic products, fine
welded pipe, cooling parts,
Hefei Meiling package products and
Subsidiar Manufacturi
Group Holdings decoration; sales of 8,000 173,259,951.25 45,693,680.76 218,997,950.49 2,595,784.01 2,467,415.24
y ng
Limited self-production products and
raw materials, machinery
equipment, instruments and
general merchandise
22
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
(V) Major project with non raised fund
√ Applicable □Not applicable
In 10 thousand Yuan
Amount
Total Amount actually
Project investment invested in invested Progress Project earnings
amount the period ended as
period-end
The project
completed
basically in end
Officially put into production in of December
January 2013; up to end of 2013, the 2012 and put into
Relocation
project has completed and completed production
and
capacity ending; so far, the acceptance has officially in
expansion
basically completed, the settlement January 2013;
project of 26,924.12 248.53 19,834.54
Jiangxi has basically completed. The project Jiangxi Meiling
Meiling
construction has been completed and Electric achieved
Electric
Co., Ltd. put into production and reach the net profit
conditions for use. No disclosure in approximately as
later. RMB 1.75
million from
January to June
2014.
Total 26,924.12 248.53 19,834.54 -- --
Query date for temporary
notice disclosed on
N/A
appointed website (if
applicable)
Query index for temporary
notice disclosed on
N/A
appointed website (if
applicable)
VI. Prediction of business performance from January – September 2014
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
23
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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
√Applicable □Not applicable
On 26 March 2014 and 5 June 2014, the ―Profit Distribution Plan for year of 2013‖ was deliberated and
approved by 34th meeting of 7th session of the Board, 18th meeting of 7th session of supervisory committee and
annual shareholders’ general meeting of 2013. Independent directors also express independent acceptance opinion
for the proposal. The Company agreed to distribute 0.6 Yuan (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 2013, took
shareholders equity and long-term development requirement of the Company into consideration overall. Cash
dividend of 45,824,352.30 Yuan (tax included, cash dividend representing 39.46% 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 569,847,737.35 Yuan accumulated will carry forward for distribution in later years. The
Company disclosed the profit distribution plan for year of 2013 on 19 July 2014 and implemented the above said
plans.
Found more details in Notice: No.2014-015, No.2014-016, No.2014-034 and No.2014-051 published
respectively dated 28 March 2014, 6 June 2014 and 19 July 2014 on appointed website.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of
Y
Association (Y/N):
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism
Y
(Y/N):
Independent directors perform duties completely and play a proper
Y
role (Y/N):
Minority shareholders have opportunity to express opinions and
Y
demands totally and their legal rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while the
Y
cash bonus policy adjusted or changed (Y/N):
24
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
X. Profit distribution plan and capitalizing of common reserve plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from
capital reserve either for the semi-annual year.
XI. Registration of research, communication and interview in reporting period
√Applicable □Not applicable
Main information
Date Place Way Type objects discussed and
material provided
Conference Operation of the
Field E&B Assets Management Co.,
2014-1-17 room of the Institute Company, no
research Ltd.
Company materials provided
Conference Changjiang Securities, Caitong Operation of the
Field
2014-1-21 room of the Institute Securities, ICBC Credit Suisse Company, no
research
Company Asset Management materials provided
Conference Operation of the
Field
2014-1-24 room of the Institute CITIC Securities Company, no
research
Company materials provided
Minsen Investment, SWS
Conference Operation of the
Field Research, Orient Securities
2014-2-11 room of the Institute Company, no
research Asset Management, Changsheng
Company materials provided
Fund Management
Changjiang Securities, China
Southern Asset Management,
Conference Operation of the
Field ABC-CA Fund Management,
2014-2-14 room of the Institute Company, no
research BOCAM Schroders Fund
Company materials provided
Management, HFT Investment
Management
China Investment Securities,
Guotai Junan Securities, China
Merchants Fund Management,
Conference Operation of the
Field Taikang Asset Management,
2014-2-18 room of the Institute Company, no
research Sinolink Securities, Haitong
Company materials provided
Securities, Shanghai
Entertainment Holding Co.,
Ltd., GTJA Allianz Funds
25
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Management, Anbang Asset
Management
Conference Operation of the
Field Bohai Securities, SMC China
2014-5-13 room of the Institute Company, no
research Fund
Company materials provided
Conference Operation of the
Field
2014-5-15 room of the Institute GF Securities Company, no
research
Company materials provided
Sinolink Securities, ABC-CA
Fund Management, BOCAM
Schroders Fund Management,
Conference Operation of the
Field China Bodao Capital, Beijing
2014-5-27 room of the Institute Company, no
research Jiahuiying Investment
Company materials provided
Management (limited
partnership), Harvest Fund
Management
Conference Operation of the
Field GF Securities, Huabao
2014-6-18 room of the Institute Company, no
research Investment
Company materials provided
Conference Operation of the
Field Changjiang Securities, GTJA
2014-6-24 room of the Institute Company, no
research Allianz Funds
Company materials provided
26
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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
(I)No material lawsuits and arbitration in the reporting
(II)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). At the date of disclosure in the 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 of the case can be found in relevant notice (Notice No.: 2012-052) released on 20 December 2012.
2. A total of six corporations including Meiling Group and Hefei Meiling Communication Technology Co.,
Ltd. (hereinafter referred to as "Meiling Communications"), Hefei Meiling Environmental Protection Equipment
Co., Ltd. (hereinafter referred to as "Meiling Green"), Hefei Meiling Vehicle Industry Co., Ltd. (hereinafter
referred to as "Meiling Vehicle"), Hefei Meiling Electrical Appliances Co., Ltd. (hereinafter referred to as"
Meiling Daily "), Hefei Meiling Electrical Cabinets Limited Liability Company (hereinafter referred to as
"Meiling Cabinet"), Hefei Meiling Security Products Co., Ltd. (hereinafter referred to as" Meiling Security "),
dismissed "The Right To Use The Trademark License Agreement" which previously signed and requested
payment of trademark royalties. This case has been submitted to Hefei Arbitration Committee for arbitration. Up
to now, six arbitration cases Hefei Arbitration Committee preceded have been concluded. "Trademark Licensing
Agreement" signed with the preceding six companies have no longer entitled to use the "Meiling" and related
trademarks. The first quarterly report of 2014 disclosed the specific circumstances detailed in April 19, 2014 in the
relevant circumstances.
III. Questions by media
27
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
√ Applicable □Not applicable
Questions by media Date of disclosure Index of disclosure
Medias reported the intelligent products that
released by the Company, and aim at part of the
reports, the Company published the Explanation
on Intelligent Products from the Board and Juchao Website:
Clarification Announcement for explanation and http://www.cninfo.com.cn
19 Feb. 2014, 25 Feb.
clarification on intelligent products and part of the No.: 2014-005
and 25 March
media reports on information disclosure media No.: 2014-008
appointed by the Company dated 19 February No.: 2014-014
2014, 25 February 2014 and 25 March 2014
respectively in order to made clear conditions of
intelligent products for the investors
IV. Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization in Period.
V. Assets transaction
(I) Acquisition of assets
□Applicable √ Not applicable
No acquisition of assets in Period.
(II) Assets sold
□Applicable √ Not applicable
No assets sold in Period.
(III) Enterprise combination
□Applicable √ Not applicable
No enterprise combination in Period.
VI. Implementation and its influence of equity incentive plan
□Applicable √ Not applicable
No implementation of equity incentive plan in Period.
VII. Material related transaction
(I) Related transaction with daily operation concerned
28
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Type Related Clearin Available
Related Proportio
Se of transaction g form
Content of Pricing transaction n in similar
relate amount for
ria Related party Relationship related principl price (in 10 similar Date of disclosure Index of disclosure
d (in 10 related market
transaction e thousand transactio
l transa thousand transact
Yuan) ns (%) price
ction Yuan) ion
electric
melting,
Sichuan Comm resistors, Spot Juchao
Controlling exchang
Changhong odity integrated Marketi e or Website(www.cninfo.com.cn)
1 shareholder and 6,370.99 6,370.99 1.49% - 2014-3-28,2014-6-6
Electric Co., purcha circuit ng price bank No.:2014-015,2014-016,2014-018,2
ultimate controller acceptan
LTD sed accessory, ce 014-034
color
masterbatch
Other enterprise
Comm Juchao
Huayi control under the Bank
odity Compressor Marketi Website(www.cninfo.com.cn)No.:2
2 Compressor Co., same controlling 34,111.22 34,111.22 7.98% acceptan - 2014-3-28,2014-6-6
purcha etc. ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and ce
sed 034
ultimate controller
Other enterprise
Comm Juchao
Sichuan control under the Bank
Changhong Mold odity Plastic Marketi Website(www.cninfo.com.cn)No.:2
3 same controlling 20,224.04 20,224.04 4.73% acceptan - 2014-3-28,2014-6-6
Plastic Tech. Co., purcha products etc. ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and ce
sed 034
ultimate controller
Other enterprise
Comm Juchao
control under the Bank
Sichuan odity Marketi Website(www.cninfo.com.cn)No.:2
Door shell,
4 Changhong Jijia same controlling 9,936.91 9,936.91 2.32% acceptan - 2014-3-28,2014-6-6
purcha baseboard etc. ng price 014-015,2014-016,2014-018,2014-
Fine Co., Ltd.
shareholder and ce
sed 034
ultimate controller
5 Sichuan Other enterprise Comm Packing case, Marketi 2,520.67 2,520.67 0.59% Bank - 2014-3-28,2014-6-6 Juchao
Changhong printed matter
29
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Package Printing control under the odity etc. ng price acceptan Website(www.cninfo.com.cn)No.:2
Co., Ltd.
same controlling purcha ce 014-015,2014-016,2014-018,2014-
shareholder and sed 034
ultimate controller
Other enterprise
Sichuan Comm Juchao
control under the Bank
Changhong odity Marketi Website(www.cninfo.com.cn)No.:2
6 Precision same controlling PCB etc. 376.21 376.21 0.09% acceptan - 2014-3-28,2014-6-6
Electronics Tech. purcha ng price 014-015,2014-016,2014-018,2014-
shareholder and ce
Co., Ltd. sed 034
ultimate controller
Sichuan Other enterprise
Comm Juchao
Changhong New control under the Spot
odity Marketi Website(www.cninfo.com.cn)No.:2
7 Energy same controlling Battery 49.21 49.21 0.01% exchang - 2014-3-28,2014-6-6
purcha ng price 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and e
sed 034
Ltd. ultimate controller
Other enterprise
Sichuan Liyuan Comm Juchao
control under the Spot
Electronic Co., odity Transformer Marketi Website(www.cninfo.com.cn)No.:2
8 same controlling 610.14 610.14 0.14% exchang - 2014-3-28,2014-6-6
Ltd. of 081 purcha and filter ng price 014-015,2014-016,2014-018,2014-
shareholder and e
Electronic Group sed 034
ultimate controller
Spot
Other enterprise
Comm exchang Juchao
Mianyang control under the
Hongrun odity Conductor Marketi e or Website(www.cninfo.com.cn)No.:2
9 same controlling 865.15 865.15 0.20% - 2014-3-28,2014-6-6
Electronic Co., purcha line etc. ng price bank 014-015,2014-016,2014-018,2014-
Ltd. shareholder and
sed acceptan 034
ultimate controller
ce
Other enterprise
Comm Juchao
Guangdong control under the Spot
Changhong odity Foam pieces Marketi Website(www.cninfo.com.cn)No.:2
10 same controlling 45.63 45.63 0.01% exchang - 2014-3-28,2014-6-6
Electronics Co., purcha etc. ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and e
sed 034
ultimate controller
30
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Other enterprise
Zhongshan Comm Juchao
control under the Spot
Guanghong Mold odity Marketi Website(www.cninfo.com.cn)No.:2
11 same controlling Plastic parts 2.47 2.47 0.00% exchang - 2014-3-28,2014-6-6
Technology Co., purcha ng price 014-015,2014-016,2014-018,2014-
shareholder and e
Ltd. sed 034
ultimate controller
Other enterprise
Sichuan Hongyu Comm Juchao
control under the Bank
Metal odity Marketi Website(www.cninfo.com.cn)No.:2
12 same controlling Radiator 38.95 38.95 0.01% acceptan - 2014-3-28,2014-6-6
Manufacture Co., purcha ng price 014-015,2014-016,2014-018,2014-
shareholder and ce
Ltd. sed 034
ultimate controller
Other enterprise
Sichuan Comm Printed board, Juchao
control under the Bank
Changhong odity remote control Marketi Website(www.cninfo.com.cn)No.:2
13 same controlling 2,742.98 2,742.98 0.64% acceptan 2014-3-28,2014-6-6
Electronic purcha and ng price 014-015,2014-016,2014-018,2014-
shareholder and ce
Devices Co., Ltd. sed transformer 034
ultimate controller
Guangdong Other enterprise
Comm Juchao
Changhong control under the Spot
odity Marketi Website(www.cninfo.com.cn)No.:2
14 Digital same controlling Hand piece 133.63 133.63 0.03% exchang - 2014-3-28,2014-6-6
purcha ng price 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and e
sed 034
Ltd. ultimate controller
Other enterprise
Comm Juchao
Sichuan Jiahong control under the Spot
odity Marketi Website(www.cninfo.com.cn)No.:2
15 Industrial Co., same controlling Bonsai 0.52 0.52 0.00% exchang - 2014-3-28,2014-6-6
purcha ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and e
sed 034
ultimate controller
Other enterprise
Comm Juchao
Sichuan control under the Air Spot
odity Marketi Website(www.cninfo.com.cn)No.:2
16 Changhong same controlling conditioning 2.29 2.29 0.00% exchang - 2014-3-28,2014-6-6
purcha ng price 014-015,2014-016,2014-018,2014-
Power Co., Ltd. shareholder and components e
sed 034
ultimate controller
31
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Commer
Sichuan Other enterprise
Comm cial Juchao
Changhong control under the Air
odity Marketi acceptan Website(www.cninfo.com.cn)No.:2
17 Xinrui same controlling conditioning 6,273.78 6273.78 1.47% - 2014-3-28,2014-6-6
purcha ng price ce 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and components
sed settleme 034
Ltd ultimate controller
nt
Spot
Sichuan Juchao
Controlling Sales exchang
Changhong Air-condition Marketi Website(www.cninfo.com.cn)No.:2
18 shareholder and of 88,691.22 88,691.22 13.98% e, Bank - 2014-3-28,2014-6-6
Electric Co., er ng price 014-015,2014-016,2014-018,2014-
ultimate controller goods acceptan
LTD 034
ce
Sichuan Sales Juchao
Controlling Spot
Changhong of Air-condition Marketi Website(www.cninfo.com.cn)No.:2
19 shareholder and -4.87 -4.87 0.00% exchang - 2014-3-28,2014-6-6
Electronics goods er ng price 014-015,2014-016,2014-018,2014-
ultimate controller e
Group Co., Ltd. return 034
Other enterprise
Juchao
control under the Sales Bank
Sichuan Marketi Website(www.cninfo.com.cn)No.:2
20 Changhong Jijia same controlling of Color plate 1,628.42 1,628.42 0.26% acceptan - 2014-3-28,2014-6-6
Fine Co., Ltd. ng price 014-015,2014-016,2014-018,2014-
shareholder and goods ce
034
ultimate controller
Other enterprise Spot
Juchao
Sichuan control under the Sales Air-condition exchang
Changhong Mold Marketi Website(www.cninfo.com.cn)No.:2
21 same controlling of er, color 6,371.52 6,371.52 1.00% e, Bank - 2014-3-28,2014-6-6
Plastic Tech. Co., ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and goods masterbatch acceptan
034
ultimate controller ce
Other enterprise Spot
Sichuan CCO Juchao
control under the Sales exchang
Display Air-condition Marketi Website(www.cninfo.com.cn)No.:2
22 same controlling of 79.35 79.35 0.01% e, Bank - 2014-3-28,2014-6-6
Technology Co., er ng price 014-015,2014-016,2014-018,2014-
shareholder and goods acceptan
Ltd. 034
ultimate controller ce
32
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Air-condition
Other enterprise Spot
er, Juchao
Mianyang LJY control under the Sales exchang
Commerce-Tradi refrigerator, Marketi Website(www.cninfo.com.cn)No.:2
23 same controlling of 612.82 612.82 0.10% e, Bank - 2014-3-28,2014-6-6
ng Chain Co., freezer and ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and goods acceptan
washing 034
ultimate controller ce
machine
Other enterprise
Juchao
Changhong control under the Sales Refrigerator , Spot
Marketi Website(www.cninfo.com.cn)No.:2
24 (Hong Kong) same controlling of Air-condition 7,132.24 7,132.24 1.12% exchang - 2014-3-28,2014-6-6
ng price 014-015,2014-016,2014-018,2014-
Trading Co., Ltd. shareholder and goods er e
034
ultimate controller
Spot
exchang
Sichuan Other enterprise
e ,Com Juchao
Changhong control under the Sales
Semi-finished Marketi mercial Website(www.cninfo.com.cn)No.:2
25 Xinrui same controlling of 4,817.86 4,817.86 0.76% - 2014-3-28,2014-6-6
products ng price acceptan 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and goods
ce 034
Ltd ultimate controller
settleme
nt
Other enterprise
Juchao
Sichuan Hongwei control under the Sales Spot
Semi-finished Marketi Website(www.cninfo.com.cn)No.:2
26 Technology Co., same controlling of 0.81 0.81 0.00% exchang - 2014-3-28,2014-6-6
products ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and goods e
034
ultimate controller
Other enterprise
Juchao
Sichuan Hongxin control under the Sales Spot
Air-condition Marketi Website(www.cninfo.com.cn)No.:2
27 Software Co., same controlling of 36.78 36.78 0.01% exchang - 2014-3-28,2014-6-6
er ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and goods e
034
ultimate controller
28 Chongqing Hong Other enterprise Sales Air-condition Marketi 46.61 46.61 0.01% Spot - 2014-3-28,2014-6-6 Juchao
33
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Life control under the of er、 ng price exchang Website(www.cninfo.com.cn)No.:2
Commerce-Tradi same controlling goods Refrigerator e, Bank 014-015,2014-016,2014-018,2014-
ng Co., Ltd. shareholder and acceptan 034
ultimate controller ce
Other enterprise
Juchao
Huayi control under the Sales Bank
Air-condition Marketi Website(www.cninfo.com.cn)No.:2
29 Compressor Co., same controlling of 1.55 1.55 0.00% acceptan - 2014-3-28,2014-6-6
er ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and goods ce
034
ultimate controller
Sichuan Other enterprise
Juchao
Changhong New control under the Sales Spot
Air-condition Marketi Website(www.cninfo.com.cn)No.:2
30 Energy same controlling of 1.02 1.02 0.00% exchang - 2014-3-28,2014-6-6
er ng price 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and goods e
034
Ltd. ultimate controller
Other enterprise
Changhong Juchao
control under the Sales Spot
Electric Marketi Website(www.cninfo.com.cn)No.:2
31 same controlling of Refrigerator 640.89 640.89 0.10% exchang - 2014-3-28,2014-6-6
(Australia) Co., ng price 014-015,2014-016,2014-018,2014-
shareholder and goods e
Ltd. 034
ultimate controller
Other enterprise
Sichuan Juchao
control under the Sales Spot
Changhong Air-condition Marketi Website(www.cninfo.com.cn)No.:2
32 same controlling of 58.41 58.41 0.01% exchang - 2014-3-28,2014-6-6
Package Printing er ng price 014-015,2014-016,2014-018,2014-
shareholder and goods e
Co., Ltd. 034
ultimate controller
Other enterprise
Sichuan Juchao
control under the Sales Spot
Changhong Air-condition Marketi Website(www.cninfo.com.cn)No.:2
33 same controlling of 43.36 43.36 0.01% exchang - 2014-3-28,2014-6-6
Minsheng er ng price 014-015,2014-016,2014-018,2014-
shareholder and goods e
Logistic Co., Ltd. 034
ultimate controller
34 Sichuan Service Other enterprise Sales Air-condition Marketi 528.23 528.23 0.08% Spot - 2014-3-28,2014-6-6 Juchao
34
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Exp. Appliance control under the of er ng price exchang Website(www.cninfo.com.cn)No.:2
Service Chain same controlling goods e 014-015,2014-016,2014-018,2014-
Co., Ltd. shareholder and 034
ultimate controller
Other enterprise Spot
Juchao
Sichuan control under the Sales exchang
Air-condition Marketi Website(www.cninfo.com.cn)No.:2
35 Changhong same controlling of 4.10 4.10 0.00% e, Bank - 2014-3-28,2014-6-6
er ng price 014-015,2014-016,2014-018,2014-
Power Co., Ltd. shareholder and goods acceptan
034
ultimate controller ce
Sichuan Other enterprise
Juchao
Changhong control under the Sales Spot
Waste Marketi Website(www.cninfo.com.cn)No.:2
36 Gerun Renewable same controlling of 378.71 378.71 0.06% exchang - 2014-3-28,2014-6-6
materials ng price 014-015,2014-016,2014-018,2014-
Resources Co., shareholder and goods e
034
Ltd. ultimate controller
Sichuan Other enterprise
Juchao
Changhong control under the Sales Spot
Air-condition Marketi Website(www.cninfo.com.cn)No.:2
37 Network same controlling of 3.28 3.28 0.00% exchang - 2014-3-28,2014-6-6
er ng price 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and goods e
034
Ltd. ultimate controller
Chengdu Other enterprise
Juchao
Changhong control under the Sales Spot
Air-condition Marketi Website(www.cninfo.com.cn)No.:2
38 Electronic same controlling of 575.60 575.60 0.09% exchang - 2014-3-28,2014-6-6
er ng price 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and goods e
034
Ltd. ultimate controller
Other enterprise
Juchao
Hefei Changhong control under the Sales Bank
Marketi Website(www.cninfo.com.cn)No.:2
39 Industrial Co., same controlling of Packing box 93.12 93.12 0.01% acceptan - 2014-3-28,2014-6-6
ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and goods ce
034
ultimate controller
40 Zhongshan Other enterprise Sales Refrigerant Marketi 0.14 0.14 0.00% Spot - 2014-3-28,2014-6-6 Juchao
35
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Guanghong Mold control under the of ng price exchang Website(www.cninfo.com.cn)No.:2
Technology Co., same controlling goods e 014-015,2014-016,2014-018,2014-
Ltd. shareholder and 034
ultimate controller
Other enterprise
Sichuan Juchao
control under the Sales Spot
Changhong Air-condition Marketi Website(www.cninfo.com.cn)No.:2
41 same controlling of 0.85 0.85 0.00% exchang - 2014-3-28,2014-6-6
Electronic er ng price 014-015,2014-016,2014-018,2014-
shareholder and goods e
Devices Co., Ltd. 034
ultimate controller
Other enterprise
Guangdong Juchao
control under the Sales Spot
Changhong Air-condition Marketi Website(www.cninfo.com.cn)No.:2
42 same controlling of 1.36 1.36 0.00% exchang - 2014-3-28,2014-6-6
Electronics Co., er ng price 014-015,2014-016,2014-018,2014-
shareholder and goods e
Ltd. 034
ultimate controller
Other enterprise
Rent Juchao
Sichuan control under the Bank
to the Lease Website(www.cninfo.com.cn)No.:2
43 Changhong Jijia same controlling Workshop 23.33 23.33 0.56% acceptan - 2014-3-28,2014-6-6
related contract 014-015,2014-016,2014-018,2014-
Fine Co., Ltd. shareholder and ce
party 034
ultimate controller
Other enterprise
Rent Juchao
BVCH Optronics control under the Spot
to the Freight Lease Website(www.cninfo.com.cn)No.:2
44 (Sichuan) Co., same controlling 6.37 6.37 0.15% exchang - 2014-3-28,2014-6-6
related elevator contract 014-015,2014-016,2014-018,2014-
Ltd. shareholder and e
party 034
ultimate controller
Other enterprise
Guangdong Rent Juchao
control under the Part of office Spot
Changhong to the Lease Website(www.cninfo.com.cn)No.:2
45 same controlling building for 39.01 39.01 0.94% exchang - 2014-3-28,2014-6-6
Electronics Co., related contract 014-015,2014-016,2014-018,2014-
shareholder and rent e
Ltd. party 034
ultimate controller
46 Guangdong Other enterprise Rent Living Lease 3.49 3.49 0.08% Spot - 2014-3-28,2014-6-6 Juchao
36
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Changhong control under the to the quarters contract exchang Website(www.cninfo.com.cn)No.:2
Electronics Co., same controlling related e 014-015,2014-016,2014-018,2014-
Ltd. shareholder and party 034
ultimate controller
Other enterprise
Zhongshan Rent Juchao
control under the Spot
Guanghong Mold to the Living Lease Website(www.cninfo.com.cn)No.:2
47 same controlling 0.48 0.48 0.01% exchang - 2014-3-28,2014-6-6
Technology Co., related quarters contract 014-015,2014-016,2014-018,2014-
shareholder and e
Ltd. party 034
ultimate controller
Guangdong Other enterprise
Rent Juchao
Changhong control under the Spot
to the Living Lease Website(www.cninfo.com.cn)No.:2
48 Electric same controlling 1.82 1.82 0.04% exchang - 2014-3-28,2014-6-6
related quarters contract 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and e
party 034
Ltd. ultimate controller
Other enterprise
Sichuan Rent Juchao
control under the Spot
Changhong to the Warehouse Lease Website(www.cninfo.com.cn)No.:2
49 same controlling 0.52 0.52 0.01% exchang - 2014-3-28,2014-6-6
Package Printing related rental contract 014-015,2014-016,2014-018,2014-
shareholder and e
Co., Ltd. party 034
ultimate controller
Other enterprise
Rent Juchao
Sichuan Jinghong control under the Spot
to the Warehouse Lease Website(www.cninfo.com.cn)No.:2
50 Package Products same controlling 0.07 0.07 0.00% exchang - 2014-3-28,2014-6-6
related rental contract 014-015,2014-016,2014-018,2014-
Co., Ltd. shareholder and e
party 034
ultimate controller
Other enterprise
Rent Juchao
Sichuan Changhe control under the Spot
to the Warehouse Lease Website(www.cninfo.com.cn)No.:2
51 Technology Co., same controlling 0.03 0.03 0.00% exchang - 2014-3-28,2014-6-6
related rental contract 014-015,2014-016,2014-018,2014-
Ltd. shareholder and e
party 034
ultimate controller
52 Sichuan Other enterprise Rent Warehouse Lease 0.21 0.21 0.01% Spot - 2014-3-28,2014-6-6 Juchao
37
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Changxin control under the to the rental contract exchang Website(www.cninfo.com.cn)No.:2
Refrigeration same controlling related e 014-015,2014-016,2014-018,2014-
Parts Co., Ltd. shareholder and party 034
ultimate controller
Other enterprise
Sichuan Rent Workhouse Juchao
control under the Bank
Changhong Mold to the rental, Lease Website(www.cninfo.com.cn)No.:2
53 same controlling 91.16 91.16 2.20% acceptan - 2014-3-28,2014-6-6
Plastic Tech. Co., related Warehouse contract 014-015,2014-016,2014-018,2014-
shareholder and ce
Ltd. party rental 034
ultimate controller
Other enterprise
Sichuan Rent Part of office Juchao
control under the Spot
Changhong to the building for Lease Website(www.cninfo.com.cn)No.:2
54 same controlling 2.18 2.18 0.05% exchang - 2014-3-28,2014-6-6
Minsheng related rent, living contract 014-015,2014-016,2014-018,2014-
shareholder and e
Logistic Co., Ltd. party quarters 034
ultimate controller
Rent
Sichuan Juchao
Controlling from Assets Spot
Changhong Website(www.cninfo.com.cn)No.:2
55 shareholder and the Office lease 33.45 33.45 0.81% exchang - 2014-3-28,2014-6-6
Electric Co., 014-015,2014-016,2014-018,2014-
ultimate controller related contract e
LTD 034
party
Sichuan Purch Line body Juchao
Controlling Bank
Changhong ase of transformatio Marketi Website(www.cninfo.com.cn)No.:2
56 shareholder and 151.77 151.77 1.46% acceptan - 2014-3-28,2014-6-6
Electric Co., fixed n, project ng price 014-015,2014-016,2014-018,2014-
ultimate controller ce
LTD assets development 034
Other enterprise
Purch Software Juchao
Sichuan Hongxin control under the Bank
ase of development, Marketi Website(www.cninfo.com.cn)No.:2
57 Software Co., same controlling 50.19 50.19 0.48% acceptan - 2014-3-28,2014-6-6
fixed system ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and ce
assets optimization 034
ultimate controller
Mianyang Other enterprise Purch Machinery Marketi Spot Juchao
58 35.47 35.47 0.34% - 2014-3-28,2014-6-6
Hongfa control under the ase of equipment ng price exchang Website(www.cninfo.com.cn)No.:2
38
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Technology Co., same controlling fixed e 014-015,2014-016,2014-018,2014-
Ltd. shareholder and assets 034
ultimate controller
Other enterprise
Sichuan Purch Juchao
control under the Bank
Changhong Mold ase of Mould Marketi Website(www.cninfo.com.cn)No.:2
59 same controlling 125.79 125.79 1.21% acceptan - 2014-3-28,2014-6-6
Plastic Tech. Co., fixed assets ng price 014-015,2014-016,2014-018,2014-
shareholder and ce
Ltd. assets 034
ultimate controller
Sichuan Other enterprise
Sales Juchao
Changhong control under the Spot
of Disposal of Marketi Website(www.cninfo.com.cn)No.:2
60 Gerun Renewable same controlling 44.71 44.71 0.43% exchang - 2014-3-28,2014-6-6
fixed assets ng price 014-015,2014-016,2014-018,2014-
Resources Co., shareholder and e
assets 034
Ltd. ultimate controller
Other enterprise Recei Spot
Sichuan Transportatio Juchao
control under the ving exchang
Changhong n, storage, Marketi Website(www.cninfo.com.cn)No.:2
61 same controlling labor 16,589.98 16,589.98 77.80% e, Bank - 2014-3-28,2014-6-6
Minsheng loading and ng price 014-015,2014-016,2014-018,2014-
shareholder and servic acceptan
Logistic Co., Ltd. unloading 034
ultimate controller es ce
Other enterprise Recei Spot
Sichuan Service Juchao
control under the ving After-sales exchang
Exp. Appliance Marketi Website(www.cninfo.com.cn)No.:2
62 same controlling labor maintenance 6,109.94 6,109.94 68.18% e, Bank - 2014-3-28,2014-6-6
Service Chain ng price 014-015,2014-016,2014-018,2014-
shareholder and servic fee etc. acceptan
Co., Ltd. 034
ultimate controller es ce
Information
Recei Spot
Sichuan system Juchao
Controlling ving exchang
Changhong services, Marketi Website(www.cninfo.com.cn)No.:2
63 shareholder and labor 983.23 983.23 3.62% e, Bank - 2014-3-28,2014-6-6
Electric Co., marketing fee, ng price 014-015,2014-016,2014-018,2014-
ultimate controller servic acceptan
LTD installation 034
es ce
fee
64 Sichuan Hongwei Other enterprise Recei Project Marketi 71.17 71.17 0.26% Spot - 2014-3-28,2014-6-6 Juchao
39
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Technology Co., control under the ving cooperation ng price exchang Website(www.cninfo.com.cn)No.:2
Ltd. same controlling labor development e 014-015,2014-016,2014-018,2014-
shareholder and servic 034
ultimate controller es
Other enterprise Recei
Guangdong Juchao
control under the ving Spot
Changhong Network Marketi Website(www.cninfo.com.cn)No.:2
65 same controlling labor 6.69 6.69 0.02% exchang - 2014-3-28,2014-6-6
Electronics Co., services fees ng price 014-015,2014-016,2014-018,2014-
shareholder and servic e
Ltd. 034
ultimate controller es
Other enterprise Recei
Sichuan Juchao
control under the ving New Bank
Changhong Mold Marketi Website(www.cninfo.com.cn)No.:2
66 same controlling labor consumables 4.74 4.74 0.02% acceptan - 2014-3-28,2014-6-6
Plastic Tech. Co., ng price 014-015,2014-016,2014-018,2014-
shareholder and servic fees ce
Ltd. 034
ultimate controller es
Other enterprise Recei
Juchao
Sichuan Jiahong control under the ving Spot
Advertising Marketi Website(www.cninfo.com.cn)No.:2
67 Industrial Co., same controlling labor 2.39 2.39 0.05% exchang - 2014-3-28,2014-6-6
fees ng price 014-015,2014-016,2014-018,2014-
Ltd. shareholder and servic e
034
ultimate controller es
Other enterprise Provid
Guangdong Juchao
control under the ing Spot
Changhong Water, Marketi Website(www.cninfo.com.cn)No.:2
68 same controlling fuel 24.36 24.36 0.00% exchang - 2014-3-28,2014-6-6
Electronics Co., electricity ng price 014-015,2014-016,2014-018,2014-
shareholder and and e
Ltd. 034
ultimate controller power
Guangdong Other enterprise Provid
Juchao
Changhong control under the ing Spot
Water, Marketi Website(www.cninfo.com.cn)No.:2
69 Electric same controlling fuel 0.15 0.15 0.00% exchang - 2014-3-28,2014-6-6
electricity ng price 014-015,2014-016,2014-018,2014-
Technology Co., shareholder and and e
034
Ltd. ultimate controller power
70 Sichuan Other enterprise Provid Water, Marketi 1.17 1.17 0.00% Spot - 2014-3-28,2014-6-6 Juchao
40
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Changhong control under the ing electricity ng price exchang Website(www.cninfo.com.cn)No.:2
Minsheng same controlling fuel e 014-015,2014-016,2014-018,2014-
Logistic Co., Ltd. shareholder and and 034
ultimate controller power
Other enterprise Provid
Sichuan Exp. Juchao
control under the ing Spot
Appliance Water, Marketi Website(www.cninfo.com.cn)No.:2
71 same controlling fuel 0.11 0.11 0.00% exchang - 2014-3-28,2014-6-6
Service Chain electricity ng price 014-015,2014-016,2014-018,2014-
shareholder and and e
Corp. 034
ultimate controller power
Other enterprise Provid
Zhongshan Juchao
control under the ing Spot
Guanghong Mold Water, Marketi Website(www.cninfo.com.cn)No.:2
72 same controlling fuel 0.07 0.07 0.00% exchang - 2014-3-28,2014-6-6
Technology Co., electricity ng price 014-015,2014-016,2014-018,2014-
shareholder and and e
Ltd. 034
ultimate controller power
Other enterprise Provid
Juchao
Sichuan control under the ing Spot
Water, Marketi Website(www.cninfo.com.cn)No.:2
73 Changhong Jijia same controlling fuel 7.35 7.35 0.00% exchang - 2014-3-28,2014-6-6
electricity, gas ng price 014-015,2014-016,2014-018,2014-
Fine Co., Ltd. shareholder and and e
034
ultimate controller power
Other enterprise Provid
Sichuan Juchao
control under the ing Spot
Changhong Mold Water, Marketi Website(www.cninfo.com.cn)No.:2
74 same controlling fuel 348.71 348.71 0.05% exchang - 2014-3-28,2014-6-6
Plastic Tech. Co., electricity, gas ng price 014-015,2014-016,2014-018,2014-
shareholder and and e
Ltd. 034
ultimate controller power
Accep
Juchao
Sichuan Controlling ting Spot
Marketi Website(www.cninfo.com.cn)No.:2
75 Changhong Co., shareholder and fuel Energy 812.32 812.32 0.19% exchang - 2014-3-28,2014-6-6
ng price 014-015,2014-016,2014-018,2014-
Ltd. ultimate controller and e
034
power
76 Huayi Other enterprise Accep Compressed Marketi 61.06 61.06 0.01% Spot - 2014-3-28,2014-6-6 Juchao
41
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Compressor Co., control under the ting air fees, ng price exchang Website(www.cninfo.com.cn)No.:2
Ltd. same controlling fuel electricity fees e 014-015,2014-016,2014-018,2014-
shareholder and and 034
ultimate controller power
Total -- 221,681.66 —— -- -- -- --
Detail of sales return with major amount involved Not applicable
Being deliberated and approved by annual shareholders general meeting of 2013, the daily related transaction amount for year of 2014 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 2014 was RMB 1200 million at most (tax-excluded), actually RMB 433.0965 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 2014 was RMB 800 million at most (tax-excluded), actually RMB 341.1122 million
occurred in reporting period (tax-excluded).
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and
molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2014 was RMB100 million at most (tax-excluded), actually
RMB 4.0793 million occurred in reporting period (tax-excluded).
Report the actual implementation of the daily related transactions which
4. It is estimated that the related transaction amount resulted by purchasing goods from and providing fuel and power to Sichuan Changhong
were projected about their total amount by types during the reporting
and its subsidiary by the Company for year of 2014 was RMB 2100 million at most (tax-excluded), actually RMB 1073.1076 million occurred
period(if applicable)
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 of 2014 was RMB 2.6 million at most
(tax-excluded), actually RMB 610,600 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 2014 was RMB 50 million at most (tax-excluded), actually RMB 2.0211 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 2014 was RMB 500 million at most (tax-excluded), actually RMB 165.8998 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 2014 was RMB 150 million at most (tax-excluded), actually RMB 61.0994 million
42
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 2014 was RMB 90 million at most (tax-excluded),
actually RMB 10.6823 million occurred in reporting period (tax-excluded).
10. It is estimated that the related transaction amount resulted by selling goods from Sichuan Changhong Electronics Group and its subsidiary
by the Company for year of 2014 was RMB 70 million at most (tax-excluded), actually RMB 48.1299 million occurred in reporting period.
11. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services etc. from Sichuan Changhong
Electronics Group and its subsidiary by the Company for year of 2014 was RMB 80 million at most (tax-excluded), actually RMB 68.8392
million occurred in reporting period.
Reasons for major differences between trading price and market
Not applicable
reference price(if applicable)
43
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
(II)Related transactions with Finance Company
1. Related transactions about the ―Financial Service Agreement‖ signed between the Company and Sichuan
Changhong Group Finance Co., Ltd.
To broaden the financing channels and reduce the financing costs and financial costs, the Company convoked
the thirtieth meeting of the seventh Board of Directors on 17th, October, 2013 and the third extraordinary general
meeting of the seventh Board of Directors on 7th, November, 2013, and agreed the Company to sign a three-year
Financial Services Agreement with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred to as
"Changhong Finance Company"). In January 2014, the Company received the 2013 Annual Audit Report from
Changhong Finance Company, which was audited by Shine Wing CPAs (LLP.), who has the securities and
futures-related business qualifications.2013 annual basic index of Changhong Finance Company met the
requirements of the "Management Approaches for the Finance Companies of the Enterprise Group" issued by the
China Banking Regulatory Commission and the relevant regulations of Shenzhen Stock Exchange, no case that
needed to start the risk disposition plan as ruled in ―Risk disposition plan about the loans and deposits financial
services of Sichuan Changhong Group Finance Company‖ has occurred, the Company shall carry out the deposits
and loans business in accordance with the "Financial Services Agreement" signed with Changhong Finance
Company, continued to do the risk management to the deposit and loan businesses with Changhong Finance
Company funds between risk management, regularly carried out the special risk assessments, and timely
performed the information disclosure obligations in accordance with the relevant regulations. For details, please
refer to the relevant announcement (No.:2013-045, No.:2013-046, No.:2013-048, No.:2013-053, No.:2014-003)
disclosed at Securities Times, China Securities Journal, Hong Kong Commercial Daily and www.cninfo.com.cn
on 18 October 2013, 8 November 2013 and 25 January 2014.
2. Related transactions between the Company and Changhong Finance Company
According to the three-year Financial Services Agreement that the Company signed with Changhong Finance
Company, Changhong Finance Company should provide a range of financial services within its business scope in
accordance with the requirements of the Company and its subsidiaries, including but not limited to deposit
services, settlement services, loan services, bill discounting services, guarantees and other businesses approved by
the China Banking Regulatory Commission. Related transactions between the Company and Changhong Finance
Company in the half year of 2014 are as follows:
Up to 30th of June 2014, the Company has opened financial business as savings, note drawing and notes
discounted with Changhong Finance Company. The Company and its subordinate company owns 36,448,524.53
Yuan savings in Changhong Finance Company, takes 9.13% of the deposit taking balance in Changhong Finance
Company without 30% occupied, notes drawing was 40,439,283.26 Yuan and notes discounted as 334,703,024.89
Yuan. More details are:
In RMB
44
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Interest and
commission
Balance at Increase in the Decrease in the Balance at
Name charge
year-begin year year year-end received or
paid
I. Savings in
Changhong Group 0.00 1,056,526,088.26 1,020,077,563.73 36,448,524.53 540,472.92
Finance Company
II. Borrowings from
Changhong Group - - - - -
Finance Company
1.Short-term loans - - - - -
2.Long-term loans - - - - -
III. Other financial
- - - - -
business
1. notes
- 40,439,283.26 - - -
drawing
2. notes
- 334,703,024.89 - - -2,571,207.92
discounted
(III) Related transaction arising from assets acquisition and sold
□ Applicable √ Not applicable
No Related transaction arising from assets acquisition and sold in reporting period.
(IV) Material related transaction of jointly foreign investment
□ Applicable √ Not applicable
The Company has no material related transaction of jointly foreign investment occurred in
reporting period.
(V) Connect of related liability and debt
√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √No
No non-operational contact of related liability or debts in Period.
45
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Whether has
non-business Balance at
Debtor-creditor Amount in the Period (10 Balance at period-end
Serial Related party Relationship Causes capital period-begin (10
type thousand Yuan) (10 thousand Yuan)
occupying thousand Yuan)
or not
Operational
Sichuan Changhong Electronics Group Co., Controlling shareholder Claim receivable contact of
1 No 320.29 -1.15 319.14
Ltd. and ultimate controller from related party related credit
and debt
Other enterprise control Operational
Sichuan Changhong Mold Plastic Tech. Co., under the same Claim receivable contact of
2 No 8.38 9.20 17.58
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
4 Changhong Electric (Australia) Co., Ltd. No 0.00 410.68 410.68
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Xinrui Technology Co., under the same Claim receivable contact of
5 No 17.19 1,176.24 1,193.43
Ltd controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
6 PT.CHANGHONGELECTRICINDONESIA No 6,938.37 -5,472.89 1,465.48
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Claim receivable Operational
7 Hefei Changhong Industrial Co., Ltd. No 160.81 -62.98 97.82
under the same from related party contact of
46
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
8 Huayi Compressor Co., Ltd. No 0.00 -0.00 0.00
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong International Hotel Co., under the same Claim receivable contact of
9 No 0.24 -0.24 0.00
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
10 Sichuan Hongou Display Device Co., Ltd. No 13.16 -13.16 0.00
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
11 Sichuan Changhong Jijia Fine Co., Ltd. No 0.00 -0.00 0.00
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Minsheng Logistic Co., under the same Claim receivable contact of
12 No 29.34 -29.34 0.00
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Service Exp. Appliance Service under the same Claim receivable contact of
13 No 41.07 129.40 170.47
Chain Co., Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Sichuan Changhong Precision Electronic Other enterprise control Claim receivable Operational
14 No 42.73 -36.62 6.10
Technology Co., Ltd. under the same from related party contact of
47
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
15 CHANGHONGELECTRIC(AUSTRALIA) No 732.08 -732.08 0.00
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
16 Hong Kong (Changhong) Trading Co., Ltd. No 149.33 5,770.00 5,919.33
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
17 CHANGHONG(HK)TRADINGLIMITED No 221.58 -221.58 0.00
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Zhongshan Guanghong Mold Technology under the same Claim receivable contact of
18 No 6.11 -6.11 0.00
Co., Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Guangdong Changhong Electric Technology under the same Claim receivable contact of
19 No 0.60 -0.60 0.00
Co., Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Chengdu Changhong Minsheng Logistic under the same Claim receivable contact of
20 No 84.00 0.00 84.00
Co., Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Guangdong Changhong Electric Technology Other enterprise control Claim receivable Operational
21 No 12.00 0.00 12.00
Co., Ltd. under the same from related party contact of
48
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
22 081 Electronic Group Co., Ltd. No 208.60 0.00 208.60
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
23 Sichuan Changhong Power Co., Ltd. No 0.00 4.80 4.80
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Electronic Devices Co., under the same Claim receivable contact of
24 No 45.46 -38.97 6.49
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Chengdu Changhong Electronic Technology under the same Claim receivable contact of
25 No 0.00 673.46 673.46
Co., Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Gerun Renewable under the same Claim receivable contact of
26 No 0.00 -0.00 0.00
Resources Co., Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong New Energy under the same Claim receivable contact of
27 No 37.00 -37.00 0.00
Technology Co., Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Claim receivable Operational
28 Yibin Red Star Electronics Co.,Ltd. No 224.16 0.00 224.16
under the same from related party contact of
49
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Package Printing Co., under the same Claim receivable contact of
29 No 0.24 0.11 0.35
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Operational
Sichuan Changhong Electronics Group Co., Controlling shareholder Debts payable to contact of
30 No 6.06 254.09 260.14
Ltd. and ultimate controller related party related credit
and debt
Operational
Controlling shareholder Debts payable to contact of
31 Sichuan Changhong Electric Co., LTD No 3,664.63 -214.46 3,450.17
and ultimate controller related party related credit
and debt
Other enterprise control Operational
Sichuan Changhong Mold Plastic Tech. Co., under the same Debts payable to contact of
32 No 6,757.95 4,658.39 11,416.33
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
33 Huayi Compressor Co., Ltd. No 302.37 13,486.91 13,789.28
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
34 Sichuan Changhong Jijia Fine Co., Ltd. No 7,194.10 3,260.86 10,454.96
controlling shareholder related party related credit
and ultimate controller and debt
Sichuan Changhong Minsheng Logistic Co., Other enterprise control Debts payable to Operational
35 No 4,201.08 -1,280.28 2,920.80
Ltd. under the same related party contact of
50
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Package Printing Co., under the same Debts payable to contact of
36 No 1,345.50 684.39 2,029.89
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
37 Sichuan Changhong Devices Tech. Co., Ltd. No 0.30 -0.30 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
38 Mianyang Hongrun Electronic Co., Ltd. No 291.05 195.93 486.98
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Lighting Technology under the same Debts payable to contact of
39 No 0.00 0.33 0.33
Co.,Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Precision Electronic under the same Debts payable to contact of
40 No 193.85 138.78 332.64
Technology Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Liyuan Electronic Co., Ltd. of 081 under the same Debts payable to contact of
41 No 138.45 -127.00 11.45
Electronic Group controlling shareholder related party related credit
and ultimate controller and debt
Sichuan Changhong New Energy Other enterprise control Debts payable to Operational
42 No 13.38 9.14 22.52
Technology Co., Ltd. under the same related party contact of
51
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
43 Sichuan Hongxin Software Co., Ltd. No 40.20 -40.20 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
44 Sichuan Changhong Power Co., Ltd. No 4.81 -1.73 3.08
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Hongyu Metal Manufacture Co., under the same Debts payable to contact of
45 No 11.92 28.33 40.25
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Service Exp. Appliance Service under the same Debts payable to contact of
46 No 54.96 68.63 123.59
Chain Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Electronic Devices Co., under the same Debts payable to contact of
47 No 1,278.89 790.27 2,069.16
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
48 Sichuan Hongwei Technology Co., Ltd. No 2.03 1.69 3.72
controlling shareholder related party related credit
and ultimate controller and debt
Sichuan Changhong International Hotel Co., Other enterprise control Debts payable to Operational
49 No 6.66 -6.51 0.16
Ltd. under the same related party contact of
52
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Gerun Renewable under the same Debts payable to contact of
50 No 1.05 0.00 1.05
Resources Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Xinrui Technology Co., under the same Debts payable to contact of
51 No 75.22 2,464.71 2,539.93
Ltd controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong International Travel under the same Debts payable to contact of
52 No 10.36 -7.62 2.74
Agency Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
53 Mianyang Hongfa Technology Co., Ltd. No 18.80 -18.80 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
54 Jiaxipera Compressor Co.,Ltd. No 446.21 -446.21 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
55 Huayi Compressor (Jing Zhou) Co., Ltd. No 297.85 -297.85 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Jingdezhen Honghua Home Appliance Parts Other enterprise control Debts payable to Operational
56 No 79.22 -79.22 0.00
Co., Ltd. under the same related party contact of
53
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
Guangdong Changhong Electronics Co., under the same Debts payable to contact of
57 No 1.83 34.20 36.03
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Operational
Controlling shareholder Claim receivable contact of
58 Sichuan Changhong Electric Co., LTD No 0.15 -0.02 0.13
and ultimate controller from related party related credit
and debt
Other enterprise control Operational
Sichuan Changhong Mold Plastic Tech. Co., under the same Claim receivable contact of
59 No 0.00 13.86 13.86
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Liyuan Electronic Co., Ltd. of 081 under the same Claim receivable contact of
60 No 0.00 0.00 0.00
Electronic Group controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Minsheng Logistic Co., under the same Claim receivable contact of
61 No 0.00 9.48 9.48
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
62 Sichuan Hongwei Technology Co., Ltd. No 0.00 14.10 14.10
controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Claim receivable Operational
63 Mianyang Hongfa Technology Co., Ltd. No 14.70 2.80 17.50
under the same from related party contact of
54
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Mold Plastic Tech. Co., under the same Claim receivable contact of
64 No 2.00 -2.00 0.00
Ltd. controlling shareholder from related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Claim receivable contact of
65 Sichuan Changhong Jijia Fine Co., Ltd. No 3.58 -3.58 0.00
controlling shareholder from related party related credit
and ultimate controller and debt
Operational
Controlling shareholder Debts payable to contact of
66 Sichuan Changhong Electric Co., LTD No 0.00 2,730.37 2,730.37
and ultimate controller related party related credit
and debt
Other enterprise control Operational
under the same Debts payable to contact of
67 Chengdu Lejiayi Trading Co., Ltd. No 0.00 0.05 0.05
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Minsheng Logistic Co., under the same Debts payable to contact of
68 No 0.00 0.01 0.01
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Electronic System Co., under the same Debts payable to contact of
69 No 0.00 -0.00 0.00
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Debts payable to Operational
70 Mianyang Lejiayi Chain Trading Co., Ltd. No 77.78 -24.51 53.27
under the same related party contact of
55
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Mold Plastic Tech. Co., under the same Debts payable to contact of
71 No 286.80 -272.84 13.96
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
72 Sichuan Changhong Devices Tech. Co., Ltd. No 0.00 -0.00 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Chongqing Hong Life Commerce-Trading under the same Debts payable to contact of
73 No 1.39 29.00 30.40
Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Gerun Renewable under the same Debts payable to contact of
74 No 0.00 33.96 33.96
Resources Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
75 Wandone Network Technology Co., Ltd. No 0.20 -0.20 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
76 Sichuan CCO Display Device Co., Ltd. No 10.63 4.50 15.13
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Debts payable to Operational
77 Sichuan Changhong Jijia Fine Co., Ltd. No 279.91 -279.91 0.00
under the same related party contact of
56
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
78 Lejiayi Chain Management Co., Ltd. No 0.03 0.00 0.03
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
79 CHANGHONG(HK)TRADINGLIMITED No 0.00 1,271.86 1,271.86
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
80 Huayi Compressor Co., Ltd. No 0.00 74.87 74.87
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
81 CHANGHONGELECTRICRUSSIALLC No 7.63 -7.63 0.00
controlling shareholder related party related credit
and ultimate controller and debt
Operational
Controlling shareholder Debts payable to contact of
82 Sichuan Changhong Electric Co., LTD No 1,802.19 -1,627.65 174.54
and ultimate controller related party related credit
and debt
Other enterprise control Operational
Sichuan Changhong Minsheng Logistic Co., under the same Debts payable to contact of
83 No 61.36 -2.71 58.65
Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Sichuan Changhong Mold Plastic Tech. Co., Other enterprise control Debts payable to Operational
84 No 32.05 0.20 32.25
Ltd. under the same related party contact of
57
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
85 Sichuan Changhong Jijia Fine Co., Ltd. No 20.05 1.10 21.15
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Gerun Renewable under the same Debts payable to contact of
86 No 1.00 0.00 1
Resources Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Changhong Xinrui Technology Co., under the same Debts payable to contact of
87 No 0.00 20.00 20
Ltd controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
under the same Debts payable to contact of
88 Huayi Compressor Co., Ltd. No 0.00 5.00 5
controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Jingdezhen Honghua Home Appliance Parts under the same Debts payable to contact of
89 No 5.00 -5.00 0.00
Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Other enterprise control Operational
Sichuan Service Exp. Appliance Service under the same Debts payable to contact of
90 No 3.34 -3.34 0.00
Chain Co., Ltd. controlling shareholder related party related credit
and ultimate controller and debt
Guangdong Changhong Electronics Co., Other enterprise control Debts payable to Operational
91 No 90.59 -82.76 7.83
Ltd. under the same related party contact of
58
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
controlling shareholder related credit
and ultimate controller and debt
Influence on business performance and financial status of the Company from related
Not applicable
liabilities and debts
For the above-mentioned statement, up to the Period-end, debts payable to related party from the Company and subordinate are amounting as 545.3952 million Yuan
in total, the claim receivable from related party for the Company and subordinate amounting as 108.6896 million Yuan.
59
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
(VI)Other significant related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
(VII) Other related transactions
1. Related transactions of Trademark Licensing Contract signed between the Company and Sichuan
Changhong Electric Co., LTD
(1) According to the operation requirement, and being deliberated and approved in 33rd meeting of 7th session
of the Board on 26 February 2014, the Company entered into Trademark Licensing Contract with Sichuan
Changhong Electric Co., LTD (―Sichuan Changhong‖). Sichuan Changhong, with trademark ―CHiQ‖ applied for
registration, authorized the Company and subordinate controlling subsidiary of the Company (agreed by Sichuan
Changhong) to use the trademark for free on basis of the products of intelligent refrigerator and AC under the
form of ―Home Internet‖. Permission period from 20 February 2014 to 19 February 2017
(2) According to the operation requirement, and being deliberated and approved in 37th meeting of 7th session
of the Board on 16 June 2014, the Company entered into Trademark Licensing Contract with Sichuan Changhong
Electric Co., LTD (―Sichuan Changhong‖). Sichuan Changhong, agrees to authorized the trademark of
―CHANGHONG‖ and ―长虹‖ for free use via way of exclusive license, to the Company and controlling
subsidiary of the Company who obtained the agreed in writing by Sichuan Changhong in refrigerators and freezer
products (products, packages and webpage included) sale through electrical business channel and TV shopping.
Permission period from 16 June 2014 to 15 June 2017
Disclosure information for related transaction temporary disclosed
Temporary notice Dated disclosed Website for disclosure
rd th
2014-009: Resolution notice of 23 meeting of 7 Juchao Website:
2014-2-27
session of the Board http://www.cninfo.com.cn
2014-011: Related transactions Notice of Trademark
Juchao Website:
Licensing Contract signed with Sichuan Changhong 2014-2-27
http://www.cninfo.com.cn
Electric Co., LTD
2014-036: Resolution notice of 37th meeting of 7th Juchao Website:
214-6-17
session of the Board http://www.cninfo.com.cn
2014-038: Related transactions Notice of Trademark
Juchao Website:
Licensing Contract signed with Sichuan Changhong 214-6-17
http://www.cninfo.com.cn
Electric Co., LTD
VIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
60
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
No non-business capital occupied by controlling shareholders and its related parties in Period.
IX. Significant contract and implementations
(I) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
(1) Explanation on entrust
No entrust in Period.
(2) Gains/losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period
□Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period.
2. Contract
□Applicable √ Not applicable
(1) Explanation on contract
No contract in Period.
(2) Gains/losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period
□Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the
Company in reporting period.
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
61
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in
reporting period.
(II) Guarantee
In reporting period, the Company has no guarantee for any legal person or nature person except
wholly-owned and holding subsidiary, guarantee for wholly-owned and holding subsidiary all exercise for loans
supporting operation needs with assurance guarantee offered. As of 30 June 2014, the Company offered credit
granting to part of wholly-owned and holding subsidiary. Except for wholly-owned subsidiary 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)
Related Actual date Complet
Announce of happening Actual e Guarantee for
Name of the Company Guarantee Guarantee Guarantee
ment (Date of guarantee impleme related party (Yes
guaranteed limit type term
disclosure signing limit ntation or no)
date agreement) or not
N/A - - - - - - - -
Total approving external guarantee in report Total actual occurred external guarantee in
- -
period (A1) report period (A2)
Total approved external guarantee at the end Total actual balance of external guarantee at
- -
of report period ( A3) the end of report period (A4)
Guarantee of the Company for the subsidiaries
Complet
Name of the Related Actual date of Actual e Guarantee for
Guarantee Guarante Guarantee
Company Announcement happening (Date of guarantee impleme related party
limit e type term
guaranteed disclosure date signing agreement) limit ntation (Yes or no)
or not
2014-3-28,
Sichuan Changhong 2014-6-6 Joint
Air-conditioner Co., No.:2014-015, 20,000.00 - 0.00 liability - - -
Ltd. No.:2014-019, guaranty
No.:2014-034
2013-10-18,
Zhongshan 2013-12-4 8,000.00
2013-11-8,
Changhong Electric
No.: 2013-045, Joint
Co., LTD
No.: 2013-050, 35,000.00 liability 1-year No No
Hefei Meiling
No.: 2013-053; 2013-12-6 10,000.00 guaranty
Nonferrous Metals
Products Co., Ltd. 2014-3-28,
2014-6-6
62
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
No.:2014-015,
No.:2014-019,
No.:2014-034
2014-3-28,
Hefei Meiling 2014-6-6 Joint
Package Products No.:2014-015, 4,000.00 - 0.00 liability - - -
Co., Ltd. No.:2014-019, guaranty
No.:2014-034
2014-3-28,
Zhongshan 2014-6-6 Joint
Changhong Electric No.:2014-015, 2,000.00 - 0.00 liability - - -
Co., LTD No.:2014-019, guaranty
No.:2014-034
2014-3-28,
Zhongke Meiling
2014-6-6 Joint
Cryogenic
No.:2014-015, 2,000.00 - 0.00 liability - - -
Technology Co.,
No.:2014-019, guaranty
Ltd.
No.:2014-034
Total amount of actual
Total amount of approving guarantee occurred guarantee for
63,000.00 18,000.00
for subsidiaries in report period (B1) subsidiaries in report
period (B2)
Total balance of actual
Total amount of approved guarantee guarantee for
for subsidiaries at the end of 63,000.00 subsidiaries at the end 18,000.00
reporting period (B3) of reporting period
(B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Total amount of actual
Total amount of approving guarantee
63,000.00 occurred guarantee in 18,000.00
in report period (A1+B1)
report period (A2+B2)
Total balance of actual
Total amount of approved guarantee at
63,000.00 guarantee at the end of 18,000.00
the end of report period (A3+B3)
report period (A4+B4)
The proportion of the total amount of actually guarantee in the
5.38%
net assets of the Company(that is A4+ B4)(%)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(C)
63
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
The debts guarantee amount provided for the guaranteed parties
18,000.00
whose assets-liability ratio exceed 70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(E)
Total amount of the aforesaid three guarantees(C+D+E) 18,000.00
Explanations on possibly bearing joint and several liquidating
-
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated procedures
-
(if applicable)
The above guarantees are all wholly-owned and holding subsidiaries of the Company. Production and
operation of these wholly-owned and holding subsidiaries 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 630,000,000 Yuan; the actual amount of guarantee is 180,000,000 Yuan, accounting for the
Company’s latest net assets ratio of 5.38%, at the end of the reporting period, the practical guarantee amounted to
180,000,000 Yuan.
Explanation on guarantee with composite way
□Applicable √ Not applicable
1. Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period.
(III) Other significant contract
□Applicable √ Not applicable
No other significant contract in Period.
(IV) Other significant transaction
□Applicable √ Not applicable
No other significant transaction in Period.
X. 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 2014
Implementati
Commitment Acceptor Content Date Term
on
1. The acquirer shall not engage in refrigerator business or activity
which competes or will compete with business of Meiling
Valid for long Strictly
Electrical Appliances Co., Ltd. (hereinafter referred to as the
term implemented
―Meiling Electrical Appliances‖),or that which has interest conflict
with Meiling Electrical Appliances.
Sichuan About committed and
2. The acquirer promises to apply shareholders’ right on a legal and
Changhong promised in order to Valid for long Strictly
Commitments reasonable manner and shall not take any action to limit or affect
Electric Co., prevent horizontal term implemented
made in the normal operation of Meiling Electrical Appliances.
LTD competition in the
acquisition 2007-6-12
(hereinafter Acquisition Report of 3. For any opportunity to engage in competing business, the
report or equity
referred to as Hefei Meiling Co., acquirer will advise Meiling Electrical Appliances in written for
change report engaging such business or not. If Meiling Electrical Appliances
the ―Sichuan Ltd.
Changhong‖) gives no clear written reply as to whether engaging the competing
Valid for long Strictly
business or not within 20 days after receipt of the aforesaid letter, it
term implemented
shall be deemed that it will not engage in such business. The
acquirer will only engage in non-competing 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 with
Commitment or has interest conflict with that of Meiling Electrical Appliances
regarding to reducing except for the action taken for sake of Meiling Electrical
Commitment Appliances as required by Meiling Electrical Appliances.
Sichuan and preventing Valid for long Strictly
made during the 2010-6-24
Changhong competition with 2. The Company promises to apply shareholders’ right on a legal term implemented
non-public offer
Meiling Electrical and reasonable manner and shall not take any action to limit or
Appliances affect the normal operation of Meiling Electrical Appliances.
3. In case that Meiling Electrical Appliances expects, on the basis
65
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 related transaction
agreement with Meiling Electrical Appliances under the market
Commitment principles of ―equally paid and mutual benefit‖, and fairly
regarding to reducing determined the transaction price according to the market prevailing
and standardizing standards. Valid for long Strictly
2010-6-24
related transaction term implemented
2. Perform the necessary obligations to make related directors and
with Meiling
related shareholder abstain from voting according to relevant
Electrical Appliances
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.
Commit to transfer the land and buildings to Changhong Air Conditioning Co., Ltd.
(hereinafter referred to as the ―Changhong Air Conditioning‖) upon determination of Has no clear Exemption
assets property; urge its subsidiary Sichuan Changhong Minsheng Logistics Co., Ltd. performance for
2010-9-7
transfer the land and buildings held by the company to Mianyang Meiling Refrigeration term before Implementin
Co., Ltd. (hereinafter referred to as the ―Mianyang Meiling‖)upon determination of assets implemented g
property
66
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Commit to authorized Changhong Air Conditioning and Zhongshan Air Conditioning Co.,
Valid for long Strictly
Ltd. (hereinafter referred to as the ―Zhongshan Air Conditioning‖) to use ―Changhong‖ 2010-11-6
term implemented
trademark and relevant patents for free.
Changhong Changhong Minsheng Logistics Co., Ltd. (hereinafter referred to as the ―Minsheng Has no clear Exemption
Minsheng Logistics‖)the subsidiary of Sichuan Changhong commits to transfer the land and performance for
2010-9-7
Logistics buildings to Mianyang Meiling upon determination of the relevant building title term before Implementin
Co., Ltd. certificate. implemented g
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 long Strictly
3. The directors, supervisors, senior management and core technicians of the Company 2011-1-7
Company term implemented
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.
Commitment in
respect of The Company has no high-risk investment performed in latest 12 months, such as
The 2013-11-8 to Implementin
applying portfolio investment; and promised not to performing high-risk investment (e.g. portfolio 2013-10-18
Company 2014-11-8 g
proceeds investment) in 12 months after current capital supplied.
savings in
67
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
supplement
current capital
for permanent
purpose
1.1. Since the property transfer didn’t involve the buildings and land currently used by
Changhong Air Conditioning, Sichuan Changhong commits, upon the completion of Valid for long Strictly
equity transfer, to continue to lease such assets to Changhong Air Conditioning at market term implemented
price.
Has no clear Exemption
1.2. Negotiate with Meiling Electrical Appliances in respect of the transfer of the performance for
Commitment
buildings and land according to the operation needs of Changhong Air Conditioning. term before Implementin
made in
Sichuan implemented g
transfer of air 2009-12-10
Changhong 2. After completion of this property transfer, Sichuan Changhong commits to manage to
conditioning
prevent new related transaction with Meiling Electrical Appliances. For those which can
assets property
not be prevented, Sichuan Changhong commits to determine the transaction price based
on market accepted methods, so as to ensure fairness of related transaction and protection Valid for long Strictly
of the interest of Meiling Electrical Appliances. term implemented
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator
business or activity which competes or will compete with business of Meiling Electrical
Appliances, or that which has interest conflict with Meiling Electrical Appliances.
In October to Some of the From 15
1. Make promise not to reduce the shares of Meiling bought in 2013 via any market ways
September Directors, August 2013
in the first year, which was allowed to be reduced by 50% according to the laws and Implementin
2013, supervisors 2013-8-15 to three years
regulations in the second year, and the remaining 50% was allowed to be reduced in the g
Commitments and senior after the stock
third year in accordance with the laws and regulations.
by incentive executives of purchased
68
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
objects while the Company 2. The directors, supervisors and senior management promised to manage in accordance From 15
purchasing as well as with the relevant management approaches in accordance with the "Company Law", August 2013
stock of the other "Securities Law" and "The Company’s shares held by the directors, supervisors and senior to 6 months
Company with incentive management of the listed company and its change management rules", including but not after director, Implementin
2013-8-15
performance objects limited to: during his tenure, the shares transferred each year shall not exceed 25% of the supervisor and g
incentive funds total number of shares held of the Company; shall not sell the shares of the Company senior
and owned fund within six months after bought it or purchase again six months after sold it; shall not executives
transfer the shares held within six months after Dismission. resigned
Perform the commitment
√ Yes □ No
promptly or not
Specific reason
for non-performance and Non-applicable
the next plan
Note : for the commitments completed and exemption for implementing in above mentioned table, the Company will not disclose in next ordinary report
69
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
XI. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
XII. Penalty and rectification
□Applicable √ Not applicable
Statement of rectification
□Applicable √ Not applicable
No penalty or rectification in Period.
Particular about directors, supervisors, senior executives and shareholders with over 5% shares held
suspected illegal dealings of the stock of the Company and earnings of illegal dealings taken back by the
Company that disclosed
□Applicable √ Not applicable
No particular about directors, supervisors, senior executives and shareholders with over 5% shares held
suspected illegal dealings of the stock of the Company and earnings of illegal dealings taken back by the
Company that disclosed in Period.
XIII. Risk disclosure of delisting with laws and rules violated
□Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period.
XIV. Other significant issues
√ Applicable □Not applicable
(I) On 21 February 2014, the 7th 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 1,458,835 shares released, representing 0.1910% of the total share capital of the Company. For details,
please refer to the relevant announcement (No. 2014-006) disclosed at Securities Times, China Securities Journal,
Hong Kong Commercial Daily and www.cninfo.com.cn on 20 February 2014.
(II) As Mianyang Government recalled the land use rights located in the western part of North New District
Minsheng Logistics owned, Minsheng Logistics cannot continue rental of the plant on the land to our subsidiary
Mianyang Meiling. The Board of Directors agreed, Mianyang Meiling and Minsheng Logistics signed the
"Dismiss to the Rental Contract" thus cancel the "Rental Contract" which was signed in January 2010 and has not
yet expired, while Minsheng Logistics pay compensation to Mianyang Meiling 40 million Yuan to compensate for
70
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
the loss of Mianyang Meiling for relocation and production loss as a result of the early termination. Mianyang
Meiling will look for a new plant for production based on the progress for relocation required by the government.
Details were disclosed on February 27, 2014 in the designated media, "Securities Times", "China Securities
Journal", "Hong Kong Commercial Daily" and Juchao network (www.cninfo.com.cn) on (No. 2014-009, Notice
No. 2014-010).
(III) On March 3, 2014, the Company and Hefei Xingtai Holding Group Co., Ltd. (hereinafter referred to as
"Xingtai Holding") signed the "Contingencies Confirmation Agreement". Both CPA finally approved that
contingencies debt of corporations undisclosed during audit and appraisal report when the Company acquired
certain assets of Meiling Group, amounted to 8,021,786.31 Yuan. According to "Property Rights Transfer
Contract" signed in 2010 by the Company and Xingtai Holding, the Xingtai Group should assume this part
liability. Xingtai Holdings paid the foregoing amounts as agreed. Details announcement disclosed on March 5,
2014 in the designated media, "Securities Times", "China Securities Journal", "Hong Kong Commercial Daily"
and the Juchao network (www.cninfo.com.cn) on (announcement No. 2014-012).
(IV) According to business development needs, in order to lock revenue and costs, avoid and prevent the risk
of fluctuations in exchange rates to secure sound management, in the 35th meeting of the Seventh Board of
Directors held on April 18 and June 5 2014 as well as 2013 annual General meeting, the Company agreed to carry
forward foreign exchange transactions in the 2014-2015 business year while the balance of trade business is not
more than US$ 250 million (including: dollar, Australian dollar, the euro, all other foreign currency are exchanged
into dollars ). Details announcement disclosed on April 19, 2014 in the designated media, "Securities Times",
"China Securities Journal", "Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on
(No. 2014-023, No. 2014-024, No. 2014-027, Notice No. 2014-034).
(V) According to overseas development strategy and subsidiaries Zhongshan Changhong business needs, the
company allowed Zhongshan Changhong to invest in Pakistan with $6,724,000 for construction fridge projects
whose total investment amounted to $15.31 million on April 18, 2014 during the 35th meeting of the Seventh
Board of Directors. Zhongshan Changhong and Pakistan RUBA’s subsidiary Ruba General Trading FZE Company
(Ruba General Trading Company FZE, hereinafter referred to as "The UAE RUBA Company" or "co-other")
jointly add investment in pre-venture manufacturing company and joint sales company set up by both sides in
Pakistan, jointly implement this refrigerator project whose total capital was US$ 15.31 million, of which $6.724
million for Zhongshan Changhong, the rest US$ 8,586,000 for UAE RUBA.
This investment of US$ 6,724,000 of Zhongshan Changhong, sourced capital increase and its own funds;
among them, the Company and the Company's wholly owned subsidiary Sichuan Changhong Air Conditioner Co.,
Ltd. jointly added investment to Zhongshan Changhong of 40 million Yuan (36 million Yuan from the Company, 4
million Yuan from Changhong Air Conditioner). The rest stems from Zhongshan Changhong’s own funds. After
the capital increase, registered capital of Zhongshan Changhong increased to 120 million Yuan. The share ratio of
the Company and Zhongshan Changhong Air Conditioner unchanged at 90% and 10%.
71
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Details were disclosed on April 19, 2014 in the designated media, "Securities Times", "China Securities
Journal", "Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on (No. 2014-023, No.
2014-026).
(VI) In accordance with development strategy, favored by the rapid development trend of current domestic
and international market demand on freezer but unflavored by capacity constraints, in order to improve the
production capacity of freezer with large volume, enhance the competitiveness and profitability, to meet market
demand, the Company approved project of annual production capacity of 600,000 green energy freezers with large
volume during 35th meeting of the Seventh Board of Directors held on April 18, 2014. The total investment of the
project amounted to approximately 76.79 million Yuan, of which investment in fixed assets was 66.79 million
Yuan, 10 million Yuan for current capital, all by self-financing. The construction will last one year, located in
Hefei Economic and Technological Development Zone. After the project is put into operation, the Company will
add the freezer with large volume and green energy to annual capacity of 600,000 units (double shifts). Details
announcement were disclosed on April 19, 2014 in the designated media, "Securities Times", "China Securities
Journal", "Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on (announcement No.
2014-023).
(VII) Related matters concerning exemptions controlling shareholder and fulfilling commitments with related
people on transfer of assets
1. Related matters concerning exemptions controlling shareholder
Sichuan Changhong’s commitments on land, housing transfer:
On September 7, 2010, subsidiary Sichuan Changhong Air Conditioner Co., Ltd. (hereinafter referred to as
"Changhong Air Conditioner") rented plant of Sichuan Changhong, in view of the relevant plant housing
ownership certificates being processed, in order to further support the rapid development of Changhong Air
Conditioner and ensure integrity and stability of Changhong air-conditioning business and assets, thus reduce
related party transactions in respect of rental between Sichuan Changhong and Meiling, Sichuan Changhong
promises: after the housing ownership certificates completed, it will transfer this part of the land use rights and
housing rights in accordance with the relevant rules and procedures as soon as possible to Changhong Air
Conditioning, and assist the relevant formalities.
Policies and regulations involved in land, property related change, which causes Sichuan Changhong was
unable to complete housing-related assets accreditation and transfer procedures. Therefore the above housing
ownership certificates are still being handled and time uncertain. Meanwhile, considering operating status and
future development of Changhong Air Conditioner, Changhong Air Conditioner may burden transferee cost for the
part of land use rights and house ownership which is higher than the rental fee to be paid, and may lead to large
amounts of cash outflows one time. And the available funds cannot afford for Changhong Air Conditioner to land
and housing purchase. And the purchase of assets cannot meet the needs of its future development. Therefore,
commitments fulfillment at this stage will not help the current and future development interests of Changhong Air
Conditioner, which is not conducive to safeguarding the interests of listed companies. Combined with the "Listed
72
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Company Supervision Guidelines No. 4 - the actual control of listed companies, shareholders, affiliates, as well as
the acquisition of listed companies who promise and fulfillment" (hereinafter referred to as "regulatory
guidelines"), in order to safeguard interests of the listed Company and its minority shareholders, on May 13 and
June 5, 2014 the 36th meeting of the 7th Board of Directors and 2013 annual General Meeting of shareholders, the
Company agreed to waive fulfillment to commitments of transfer of these above assets. Details were disclosed in
the media, "Securities Times", "China Securities Journal", "Hong Kong Commercial Daily" and the Juchao
network (www.cninfo.com.cn) on May 14, 2014, June 6 with Notice (No. 2014-029, No. 2014-031, Notice No.
2014-034).
2. Exemption assets transfer commitments of holding shareholders and related parties
(1) Sichuan Changhong’s commitment to urge its subsidiary to transfer land, housing assignment:
on September 7, 2010, the Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as the "Mianyang
Meiling") rented plant from Minsheng Logistics subsidiary of Sichuan Changhong and the housing property
certificate is being processed. For the rapid development and the integrity of Mianyang Meiling and stability of
2010 Meiling Electrical assets of non - public offering raised for the project construction and workshop, Sichuan
Changhong commitment: after the housing property certificate completed, the Company will try its best to urge
the Minsheng Logistics transfer a part of land use rights and property rights in accordance with the relevant
provisions and procedures as soon as possible to Mianyang Meiling.
(2) Minsheng Logistics’ commitment to transfer land, housing assignment:
on September 7, 2010, as the housing property certificate is being processed, and for the rapid development and
the integrity of Mianyang Meiling and stability of 2010 Meiling Electrical assets of non - public offering raised
for the project construction and workshop, Minsheng Logistic commitment: after the housing property certificate
completed, the Company will transfer a part of land use rights and property rights in accordance with the relevant
provisions and procedures as soon as possible to Mianyang Meiling, and will assist related procedure.
As for the Mianyang government has the land use right located in high tech Zone in Pu Ming Bei Lu Xi
Duan back which previously owned by Minsheng Logistics (including the land related to the transfer of assets
commitment), the controlling shareholder of Sichuan Changhong and its subsidiary Minsheng Logistics failed to
fulfill its commitment to transfer land, housing to Mianyang Meiling. According to the "Regulations Guidelines,
for maintenance of the Company and the interests of small shareholders, on May 13, 2014 and June 5th at the 36th
meeting of the 7th board of directors and the 2013 annual shareholders meeting, the company considered and
agreed to waive the Sichuan Changhong and Minsheng Logistic to fulfill the commitment. The specified
information were disclosed on media "Securities Times", "Chinese Securities Daily", "Hong Kong Commercial
Daily" and the Juchao network (www.cninfo.com.cn) On May 14, 2014 and June 6th with the situation in the form
of announcement (Notice No. 2014-029, No. 2014-031, No. 2014-034).
(VIII) Implementation for annual performance incentive fund
On August 9, 2012 and August 28, 2012, the Company considers the adoption of "Hefei Meiling annual
performance incentive fund implementation plan" (hereinafter referred to as "" stimulus "") on the 16th meeting of
the 7th board of directors and the 2012-second provisional shareholders meeting. Details were disclosed on
73
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
information disclosure media appointed by the Company as "Securities Times", "Chinese Securities Daily",
"Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August
29th in the form of announcement (2012-028, 2012-035).
1. Implementation about 2012 performance incentive fund provision and distribution plan
According to the "incentive" the Company has approved, operating results and the actual operation situation the
Company audited has reached the annual performance incentive fund granted conditions in 2012. The Company
held 28th meeting of the seventh session of the board in July 29, 2013 and in August 15, 2013 held fifteenth
meeting and second provisional shareholders' meeting of 2013. The board of supervisors, independent directors,
the directors, supervisors approved the "2012 Annual Performance Incentive Fund Provision and Allocation
Scheme", as follows:
(1) Excitation range and number: 30 people compliance with the conditions of the incentive objects (senior
management, middle management, and core technology and business personnel).
(2) Funding: meter 19,219,800 Yuan for incentive fund from 10% of net profit audited attributable to
shareholders the Company audited in 2012. Including, 18,217,000 Yuan has been distributed to 30 in line with the
requirements of the incentive objects (part of directors, supervisors, and senior management, middle management,
and core technology and business personnel). all the incentive object paid 30% of all the received performance
incentive fund (income tax excluded) and not less than the total annual compensation (annual total compensation
except the performance incentive fund and after pay the corresponding tax and five social insurance) in the open
market to buy stock of the Company.
(3) Share holding: 5,125,199 shares the 30 incentives bought from Aug. 23 to 6 Sep. 2013 takes up 0.67% of
the overall capital.
(4) Shares restricted commitments:
According to the "incentive plan" and the commitment of all incentive targets, all the shares transacted are
forbidden to sell in any forms in future 1 year. In the 2nd year, 50% can be sold in accordance with laws/rules. The
rest 50% can be sold in the 3rd year. As for the mentioned 30 incentives had held these shares for nearly 1 year; it
is expected 50% will be transactional in Aug. and Sep. 2014 by rules. But the rest 50% will still be restricted for
another 1 year. But, directors, supervisors and senior management among these incentives must settle shares
strictly in accordance with Company Law, Securities Laws, Administration Rules to Shares or Changes of
Directors, Supervisors and Senior Management. The rules include but not limit as: during position, more than 25%
of total shares hold are not allowed to be transferred; shares bought from the Company within 6 months are not
allowed to sold while shares sold within 6 months are not allowed to buy in; shares are not allowed to transfer
within half year since resign. If any condition against the above rule is found, all his interests will belong to the
listed company.
Details were disclosed on information disclosure media appointed by the Company as "Securities Times",
"China Securities Journal", "Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn), in
form of temporary form of 2013 No. -027, 2012 No. -028, No. 2013-029, No. 2013-030, No. 2013-037, No.
2013-038, No. 2013-039, No. 2013-040, No. 2013-041, Notice No. 2013-042).
As of the reporting period, the stock held by the above incentive does not change caused by disposition of
74
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
interests in shares of their rights.
2. Implementation of 2013 annual performance incentive provision and distribution program
According to the "incentive" the Company has approved, operating results and the actual operation situation
the Company audited has reached the annual performance incentive fund granted conditions in 2012. The
Company held 37th meeting of the seventh session of the board in June 16, 2014 and in July 3, 2014 held the first
provisional shareholders' meeting of 2014. The board of supervisors, independent directors, the directors,
supervisors approved the "2013 Annual Performance Incentive Fund Provision and Allocation Scheme", as
follows:
(1) Excitation range and number: 40 people compliance with the conditions of the incentive objects (senior
management, middle management, and core technology and business personnel).
(2) Funding: meter 27,406,800 Yuan for incentive fund from 10% of net profit audited attributable to
shareholders the Company audited in 2013. Including, 26,357,500 Yuan has been distributed to 40 in line with the
requirements of the incentive objects (part of directors, supervisors, and senior management, middle management,
and core technology and business personnel). All the incentive object paid 30% of all the received performance
incentive fund (income tax excluded) and not less than the total annual compensation (annual total compensation
except the performance
(3) Share holding: According to the "incentive plan" he company have approved, and under the premise of
the Listing Rules of Shenzhen Stock Exchange and other applicable Chinese laws and regulations, incentive target
promised within 60 working days as of receipt of the performance incentive funds (In case of regulatory ruled the
trading of shares shall not be specified, the time extended), to purchase the Company's shares through the open
market. As of the date of this report, this is still in the implementation of incentive programs.
(4) Shares restricted commitments:
According to the "Annual Performance Incentive Fund Implementation Plan of Hefei Meiling Co., Ltd" and
the commitment of all incentive targets, all the shares transacted are forbidden to sell in any forms in future 1 year.
In the 2nd year, 50% can be sold in accordance with laws/rules. The rest 50% can be sold in the 3rd year. As for the
mentioned 30 incentives had held these shares for nearly 1 year; it is expected 50% will be transactional in August
and September 2014 by rules. But the rest 50% will still be restricted for another one year. But, directors,
supervisors and senior management among these incentives must settle shares strictly in accordance with
Company Law, Securities Laws, Administration Rules to Shares or Changes of Directors, Supervisors and Senior
Management. The rules include but not limit as: during position, more than 25% of total shares hold are not
allowed to be transferred; shares bought from the Company within 6 months are not allowed to sold while shares
sold within 6 months are not allowed to buy in; shares are not allowed to transfer within half year since resign.
Details were disclosed on information disclosure media appointed by the Company as Securities Times,
China Securities Journal, Hong Kong Commercial Daily and Juchao Website respectively on Jun 17 and Jul 4
2014 in form of Notice No. 2014-036, No. 2014-037, and No. 2014- 040, Notice No. 2014-046.
75
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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
Capitaliz
New
Proportion Bonus ation of Proportion
Amount shares Others Subtotal Amount
(%) shares public (%)
issued
reserve
I. Restricted shares 67,523,544 8.84% - - - -2,197,542 -2,197,542 65,326,002 8.55%
1. State-owned shares - - - - - - - - -
2. State-owned legal
56,571,812 7.41% - - - - - 56,571,812 7.41%
person’s shares
3. Other domestic shares 10,620,913 1.39% - - - -2,197,542 -2,197,542 8,423,371 1.10%
Including: domestic legal
8,634,071 1.13% - - - -1,458,835 -1,458,835 7,175,236 0.94%
person’s shares
Domestic natural
1,986,842 0.26% - - - -738,707 -738,707 1,248,135 0.16%
person’s shares
4. Foreign shares 330,819 0.04% - - - - - 330,819 0.04%
Including: Foreign legal
- - - - - - - - -
person’s shares
Foreign natural person’s
330,819 0.04% - - - - - 330,819 0.04%
shares
II. Unrestricted shares 696,215,661 91.16% - - - 2,197,542 2,197,542 698,413,203 91.45%
1. RMB Ordinary shares 533,682,480 69.88% - - - 2,197,542 2,197,542 535,880,022 70.17%
2. Domestically listed
162,533,181 21.28% - - - - - 162,533,181 21.28%
foreign shares
3. Overseas listed foreign
- - - - - - - - -
shares
4. Others - - - - - - - - -
III. Total shares 763,739,205 100.00% - - - - - 763,739,205 100.00%
Note: data of the ratios have rounded up to two digits after the decimal point.
(I) Reasons for share changed
√ Applicable □Not applicable
The 7th restricted circulating shares after implementation of share-split reform was un-lock for trading dated
21 February 2014. Totally 4 shareholders are have shares released, un-lock shares amounting as 1,458,835 shares,
76
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
a 0.1910% in total share capital of the Company.
During the reporting period, the shares held by senior executives who resigned last year have been released,
the shares un-lock amounting as 738,707 shares, a 0.0967% in total share capital of the Company.
(II) Approval of share changed
□ Applicable √ Not applicable
(III) Ownership transfer of share changed
□ Applicable √ Not applicable
(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 preference shareholders with
Total common shareholders in voting rights recovered at end of
64,230 0
reporting period reporting period (if applicable) (see
Note 8)
Particulars about shares held above 5% by shareholders or top 10 shares holding
Total Number of share
Proporti Amount of Amount of
pledged/frozen
Nature of on of shareholders at Changes in
Full name of Shareholders restricted un-restricted
shareholder shares the end of report report period
State of
held (%) shares held shares held Amount
period share
Sichuan Changhong State-owned
21.58% 164,828,330 - 56,031,120 108,797,210 - -
Electric Co., LTD legal person
Domestic
GuoYuan Securities Co.,
non
Ltd.- Specified account 4.95% 37,800,000 - - 37,800,000
state-owned
agreed to buy-back
corporate
Domestic
Zhengde life insurance
non
Co., LTD-universal 3.77% 28,828,630 28,630 - 28,828,630 - -
state-owned
insurance products
corporate
77
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Changhong (Hong Kong) Foreign
3.30% 25,165,823 - - 25,165,823 - -
Trading Company Limited legal person
GUOTAIJUNANSECURI
Foreign
TIES(HONGKONG)LIMI 1.92% 14,692,993 -3,709,584 - 14,692,993 - -
legal person
TED
Foreign
CAO SHENGCHUN natural 1.71% 13,064,112 1,300 - 13,064,112
person
Hefei Xingtai Holding State-owned
1.31% 10,023,401 - - 10,023,401 - -
Group Co., Ltd. legal person
Domestic
PICC Health Insurance
non
Co., Ltd. – Tradition – 0.83% 6,322,978 6,322,978 - 6,322,978 - -
state-owned
general insurance products
corporate
Changan Funds—China
Domestic
Everbright Bank –
non
Changan Jiaying No.1 0.77% 5,871,711 5,871,711 - 5,871,711 - -
state-owned
grading assets
corporate
management plan
Schroder Investment
Management Co., Ltd. – Foreign
0.58% 4,397,255 2,033,555 - 4,397,255 - -
Schroder China Equity legal person
Fund
Strategy investors or general legal
person becomes top 10 shareholders due
Not applicable
to rights issued (if applicable) (see Note
3)
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 Changhong
Explanation on associated relationship
Electronic Co., Ltd., Changhong (Hong Kong) Trade Co., Ltd. and other top 8 shareholders; and
among the aforesaid 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 unrestricted Type of shares
Shareholders’ name shares held at reporting
Type Amount
period-end
Sichuan Changhong Electric Co., LTD 108,797,210 RMB ordinary 108,797,210
78
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
shares
GuoYuan Securities Co., Ltd.- Specified account agreed to buy-back RMB ordinary
37,800,000 37,800,000
shares
Zhengde life insurance Co., LTD-universal insurance products RMB ordinary
28,828,630 28,828,630
shares
Changhong (Hong Kong) Trading Company Limited Domestically listed
25,165,823 25,165,823
foreign shares
GUOTAI JUNANSECURITIES(HONGKONG) LIMITED Domestically listed
14,692,993 14,692,993
foreign shares
CAO SHENGCHUN Domestically listed
13,064,112 13,064,112
foreign shares
Hefei Xingtai Holding Group Co., Ltd. RMB ordinary
10,023,401 10,023,401
shares
PICC Health Insurance Co., Ltd. – Tradition – general insurance RMB ordinary
6,322,978 6,322,978
products shares
Changan Funds—China Everbright Bank – Changan Jiaying No.1 RMB ordinary
5,871,711 5,871,711
grading assets management plan shares
Schroder Investment Management Co., Ltd. – Schroder China Equity RMB ordinary
4,397,255 4,397,255
Fund 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
Expiation on associated relationship or consistent actors within the Changes of Listed Companies among Sichuan Changhong
top 10 un-restrict shareholders and between top 10 un-restrict Electronic Co., Ltd., Changhong (Hong Kong) and other top 8
shareholders and top 10 shareholders shareholders; and 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.
Explanation on shareholders involving margin business among the
-
top ten shareholder (if applicable) (see Note 4)
Whether has a buy-back agreement dealing in reporting period
√Yes □No
Shareholders of the Company -- Xingtai Holding exercise agree to buy-back dealing as:
On 13 September 2013, Xingtai Holding exercise agree to buy-back security transaction with GuoYuan
Securities Co., Ltd. (―GuoYuan Securities‖) with the unrestricted circulated A-share of the Company for one year
79
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
term of repurchased, that is 37,800,000 shares (accounts for 4.95 percent of total share capital of the Company).
Ownership transfer has completed on 16 September 2013 by Xingtai Holding and GuoYuan Securities. Before the
transaction, 47,823,401 shares of A-share of the Company was held by Xingtai Holding, representing 1.31 percent
of total share capital of the Company; after transaction 10,023,401 shares of A-share was held, accounts for 1.31
percent of total share capital of the Company. There is no buy-back dealings occurred in the Period. More details
of the transaction please found in Notice No.: 2013-043 released on appointed medial dated 17 September 2013.
III. Shareholder and actual controller
(I)Changes of controlling shareholder in reporting period
□Applicable √Not applicable
No change of controlling shareholder in reporting period.
(II)Changes of actual controller in reporting period
□Applicable √Not applicable
No changes of actual controller in reporting period
IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
□ Applicable √Not applicable
No share holding increasing plan proposed or implemented in reporting period from shareholder of the
Company and its concerted action person as the Company knows.
80
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Section VII. Preferred Stock
I. Issuance and listing of preferred stock in Period
□ Applicable √ Not applicable
II. Number of shareholders with preferred stock held and shareholdings
□ Applicable √ Not applicable
III. Repurchase and conversion of preferred stock
1. Preferred stock repurchased
□ Applicable √ Not applicable
2. Preferred stock converted
□ Applicable √ Not applicable
IV. Preferred stock with voting rights recovered and executed
□ Applicable √ Not applicable
V. Accounting policy taken for preferred stock and reasons
□ Applicable √ Not applicable
81
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Section VIII 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 2013.
II. Changes of directors, supervisors and senior executive
√ Applicable □Not applicable
Name Title Type Date Reasons
Resigned from the Company as director of 7th session of the
Sun Liqiang Director Office leaving 2014-2-24 Board and member of strategy committee of the Board due to
personal occupation mobility
In need of the Company’s operation, being deliberated and
approved in 33rd meeting of 7th session of the Board and AGM of
Gao Jian Director Be elected 2014-6-5 2013, agreed to elected Mr. Gao Jian as non-independent director
of the 7th session of the Board with office term same as the 7th
session of the Board.
In addition, explanation on change the term of office for 8th session of the Board and supervisory committee:
On 16 June 2014, the 37th meeting of 7th session of the Board deliberated and approved the Proposal of
General Election of 8th Session of the Board, voted by participant directors item by item, agreed to nominated Mr.
Liu Tibin, Mr. Li Jin, Mr. Li Wei, Mr. Kou Huameng, Mr. Wu Dinggang and Mr. Gao Jian as candidate of the
non-independent director of 8th session of the Board; nominated Mr. Gan Shengdao, Mr. Ren Jia and Mr. Lu
Yingjin as director candidate of 8th session of the Board. Same date, the Proposal of General Election of 8th
Session of Supervisory Committee was deliberated and approved by 21st meeting of 7th session of supervisory
committee, vote by participant supervisors item by item, agreed to nominated Mr. Yu Wanchun, Ms. Hu Jia and
Mr. Lu Xingzhou as candidate of supervisor of 8th session of supervisory committee.
On 3 July 2014, the Proposal of General Election of 8th Session of the Board and Proposal of General
Election of 8th Session of Supervisory Committee were deliberated and approved in way of cumulative voting in
First Extraordinary General Meeting 2014, agreed to elected Mr. Liu Tibin, Mr. Li Jin, Mr. Li Wei, Mr. Kou
Huameng, Mr. Wu Dinggang, Mr. Gao Jian, Mr. Gan Shengdao, Mr. Ren Jia and Mr. Lu Yingjin as directors of 8th
session of the Board and group the 8th session of the Board; and agreed to elected Mr. Yu Wanchun, Ms. Hu Jia
and Mr. Lu Xingzhou as supervisor of 8th session of supervisory committee, the three supervisors will group with
other 2 supervisors as 8th session of supervisory committee of the Company, Mr. Shang Wen and Mr. Zhang Ruhe
who elected in workers’ conference. On the same day, being decided and pass in First Meeting of 8th session of the
Board, agreed to elected Mr. Liu Tibin as chairman of the 8th session of the Board while Mr. Li Jin elected as
82
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
deputy chairman; continues recruit Mr. Li Wei as president; and according to the nomination by president, agreed
to continue recruit Mr. Liu Hongwei as executive vice president of the Company, Mr. Liao Tao, Mr. Deng Xiaohui
and Mr. Zhongming as deputy president and Mr. Zhang Xiaolong continue recruit as CFO ( finance employee in
charge) of the Company; Ms. Li Xia agreed to served as secretary of the board for the Company. At the same time,
being decided and pass in first meeting of 8th session of supervisory committee, agreed to elected Mr. Yu Wanchun
as chairman of 8th session of the supervisory committee
83
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Section IX. 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.
In RMB
Items Balance at period-end Balance at period-begin
Current assets:
Monetary funds 2,745,918,675.40 2,266,192,804.16
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 2,158,306,530.04 1,722,039,923.01
Accounts receivable 1,516,249,176.95 855,264,087.13
Accounts paid in advance 68,531,970.66 73,636,908.88
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 26,041,595.11 20,115,619.72
Purchase restituted finance asset
Inventories 1,632,373,129.65 1,593,865,312.94
Non-current asset due within one
year
Other current assets
Total current assets 8,147,421,077.81 6,531,114,655.84
84
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Non-current assets:
Granted loans and advances
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 28,711,090.17 29,495,387.39
Investment real estate 15,297,086.66 15,701,377.73
Fixed assets 1,159,175,212.60 1,138,750,631.37
Construction in progress 67,847,977.54 52,514,642.10
Engineering material
Disposal of fixed asset 76,137,234.11 76,129,471.41
Productive biological asset
Oil and gas asset
Intangible assets 577,459,188.69 593,054,170.58
Expense on Research and
16,299,052.77 9,516,070.34
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 81,979,893.49 75,895,434.58
Other non-current asset
Total non-current asset 2,022,906,736.03 1,991,057,185.50
Total assets 10,170,327,813.84 8,522,171,841.34
Current liabilities:
Short-term loans 858,594,659.12 66,433,079.86
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Transaction financial liabilities
Notes payable 1,418,957,732.65 1,520,088,715.18
Accounts payable 2,169,302,958.92 1,692,121,242.19
Accounts received in advance 350,099,797.07 363,233,745.71
Selling financial asset of
repurchase
Commission charge and
commission payable
85
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Wage payable 109,744,541.19 168,217,307.27
Taxes payable 134,260,368.85 -4,920,046.33
Interest payable
Dividend payable 1,767,979.23 1,782,087.76
Other accounts payable 1,237,932,500.14 914,983,315.18
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due within
61,123,985.90 119,256,114.30
1 year
Other current liabilities
Total current liabilities 6,341,784,523.07 4,841,195,561.12
Non-current liabilities:
Long-term loans 8,883,700.00 9,523,700.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 352,944,748.17 356,648,942.74
Deferred income tax liabilities
Other non-current liabilities 100,026,571.66 107,073,628.76
Total non-current liabilities 461,855,019.83 473,246,271.50
Total liabilities 6,803,639,542.90 5,314,441,832.62
Owner’s equity (or shareholders’
equity):
Paid-up capital (or share capital) 763,739,205.00 763,739,205.00
Capital public reserve 1,478,836,497.57 1,478,904,455.90
Less: Inventory shares
Reasonable reserve
Surplus public reserve 337,902,735.75 337,902,735.75
Provision of general risk
Retained profit 767,829,793.64 608,723,517.81
Balance difference of foreign
-1,347,759.88 -1,939,397.56
currency translation
Total owner’s equity attributable
3,346,960,472.08 3,187,330,516.90
to parent company
86
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Minority interests 19,727,798.86 20,399,491.82
Total owner’s equity(or
3,366,688,270.94 3,207,730,008.72
shareholders’ equity)
Total liabilities and owner’s
10,170,327,813.84 8,522,171,841.34
equity(or shareholders’ equity)
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
2. Balance Sheet of parent company
Prepared by Hefei Meiling Co., Ltd.
In RMB
Item Balance at period-end Balance at period-begin
Current assets:
Monetary funds 2,431,525,605.43 2,001,187,367.05
Transaction finance asset
Notes receivable 1,406,196,626.43 1,295,619,890.23
Accounts receivable 965,750,637.01 782,391,484.40
Accounts paid in advance 104,791,111.35 130,573,509.64
Interest receivable
Dividend receivable
Other receivables 45,130,126.06 45,236,748.46
Inventories 733,012,342.91 599,275,043.05
Non-current asset due within one
year
Other current assets
Total current assets 5,686,406,449.19 4,854,284,042.83
Non-current assets:
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 837,734,774.89 796,879,895.59
Investment real estate 12,516,736.98 12,753,681.33
Fixed assets 815,292,578.21 825,467,943.47
Construction in progress 61,842,040.55 44,630,882.53
Engineering material
Disposal of fixed asset 43,332,418.01 43,307,418.01
Productive biological asset
87
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Oil and gas asset
Intangible assets 439,517,393.88 444,942,445.00
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 73,273,644.87 69,171,492.26
Other non-current asset
Total non-current asset 2,283,509,587.39 2,237,153,758.19
Total assets 7,969,916,036.58 7,091,437,801.02
Current liabilities:
Short-term loans 773,363,194.51 25,340,889.00
Transaction financial liabilities
Notes payable 912,632,454.11 1,156,825,213.50
Accounts payable 1,390,173,374.31 1,100,326,742.67
Accounts received in advance 225,494,607.23 192,083,732.72
Wage payable 52,512,698.25 97,469,125.91
Taxes payable 45,831,816.65 -7,709,679.63
Interest payable
Dividend payable 1,767,979.23 1,767,979.23
Other accounts payable 788,791,311.00 743,651,849.94
Non-current liabilities due within
57,490,683.80 117,490,683.80
1 year
Other current liabilities
Total current liabilities 4,248,058,119.09 3,427,246,537.14
Non-current liabilities:
Long-term loans 8,883,700.00 9,523,700.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 352,944,748.17 356,648,942.74
Deferred income tax liabilities
Other non-current liabilities 79,279,381.81 83,024,561.91
Total non-current liabilities 441,107,829.98 449,197,204.65
Total liabilities 4,689,165,949.07 3,876,443,741.79
88
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Owner’s equity (or shareholders’
equity):
Paid-up capital (or share capital) 763,739,205.00 763,739,205.00
Capital public reserve 1,497,898,194.51 1,497,898,194.51
Less: Inventory shares
Reasonable reserve
Surplus public reserve 337,684,570.07 337,684,570.07
General risk reserve
Retained profit 681,428,117.93 615,672,089.65
Balance difference of foreign
currency translation
Total owner’s equity(or
3,280,750,087.51 3,214,994,059.23
shareholders’ equity)
Total liabilities and owner’s
7,969,916,036.58 7,091,437,801.02
equity(or shareholders’ equity)
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.
In RMB
Item Amount in this period Amount in last period
I. Total operating income 6,344,389,052.17 5,951,444,575.32
Including: Operating income 6,344,389,052.17 5,951,444,575.32
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 6,163,398,022.60 5,789,829,787.90
Including: Operating cost 4,780,495,721.56 4,526,354,103.23
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
89
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Reinsurance expense
Operating tax and extras 45,651,000.27 58,543,334.84
Sales expenses 1,156,472,220.52 1,049,206,682.51
Administration expenses 194,547,455.17 169,954,161.54
Financial expenses -43,840,298.90 -36,240,925.89
Losses of devaluation of asset 30,071,923.98 22,012,431.67
Add: Changing income of fair
value(Loss is listed with ―-‖)
Investment income (Loss is listed
-784,297.22 751,289.68
with ―-‖)
Including: Investment income on
affiliated company and joint -784,297.22 -593,240.24
venture
Exchange income (Loss is listed
with ―-‖)
III. Operating profit (Loss is
180,206,732.35 162,366,077.10
listed with ―-‖)
Add: Non-operating income 20,397,907.16 9,017,138.67
Less: Non-operating expense 2,812,927.92 3,463,798.30
Including: Disposal loss of
554,394.53 3,304,049.48
non-current asset
IV. Total Profit (Loss is listed
197,791,711.59 167,919,417.47
with ―-‖)
Less: Income tax expense 36,794,783.31 36,091,305.08
V. Net profit (Net loss is listed
160,996,928.28 131,828,112.39
with ―-‖)
Including: net profit realized
before consolidation by mergered
party
Net profit attributable to owner’s
159,106,275.83 135,691,575.62
of parent company
Minority shareholders’ gains and
1,890,652.45 -3,863,463.23
losses
VI. Earnings per share -- --
i. Basic earnings per share 0.2083 0.1777
ii. Diluted earnings per share 0.2083 0.1777
VII. Other consolidated income 591,637.68 -291,859.80
VIII. Total comprehensive income 161,588,565.96 131,536,252.59
Total consolidated income
attributable to owners of parent 159,697,913.51 135,516,459.74
company
Total consolidated income 1,890,652.45 -3,980,207.15
attributable to minority
90
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
shareholders
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.
In RMB
Item Amount in this period Amount in last period
I. Operating income 3,591,569,260.21 3,829,721,899.14
Less: operating cost 3,035,452,754.85 3,221,426,513.11
Operating tax and extras 19,339,352.66 36,221,458.33
Sales expenses 356,762,344.86 407,549,284.71
Administration expenses 93,218,907.10 78,925,071.15
Financial expenses -33,830,360.73 -31,287,748.99
Losses of devaluation of asset 42,129,575.68 2,555,031.25
Add: Changing income of fair
value(Loss is listed with ―-‖)
Investment income (Loss is listed
-95,120.70 1,285,161.84
with ―-‖)
Including: Investment income on
affiliated company and joint -95,120.70 211,404.54
venture
II. Operating profit (Loss is
78,401,565.09 115,617,451.42
listed with ―-‖)
Add: Non-operating income 16,903,310.48 5,776,504.46
Less: Non-operating expense 2,583,405.56 2,727,898.46
Including: Disposal loss of
428,397.72 2,727,898.46
non-current asset
III. Total Profit (Loss is listed
92,721,470.01 118,666,057.42
with ―-‖)
Less: Income tax expense 26,965,441.73 20,134,187.07
IV. Net profit (Net loss is listed
65,756,028.28 98,531,870.35
with ―-‖)
V. Earnings per share -- --
i. Basic earnings per share 0.0861 0.1290
ii. Diluted earnings per share 0.0861 0.1290
VI. Other consolidated income
VII. Total comprehensive income 65,756,028.28 98,531,870.35
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
91
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Person in charge of accounting institution: Tang Bin
5. Consolidated Cash Flow Statement
Prepared by Hefei Meiling Co., Ltd.
In 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 3,626,062,256.05 3,331,097,400.51
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
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 65,296,987.56 48,652,719.99
Other cash received concerning
8,804,431.58 71,908,913.97
operating activities
Subtotal of cash inflow arising
3,700,163,675.19 3,451,659,034.47
from operating activities
Cash paid for purchasing
commodities and receiving labor 2,964,018,786.37 2,507,755,591.42
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
92
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and workers 478,549,438.13 393,119,416.07
Taxes paid 196,573,266.91 313,635,084.47
Other cash paid concerning
333,430,909.54 380,447,500.28
operating activities
Subtotal of cash outflow arising
3,972,572,400.95 3,594,957,592.24
from operating activities
Net cash flows arising from
-272,408,725.76 -143,298,557.77
operating activities
II. Cash flows arising from
investing activities:
Cash received from recovering
606,076.88 720,000.00
investment
Cash received from investment
1,685,337.19
income
Net cash received from disposal
of fixed, intangible and other 41,112,847.21 593,337.20
long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received concerning
40,975,072.99 32,111,533.12
investing activities
Subtotal of cash inflow from
82,693,997.08 35,110,207.51
investing activities
Cash paid for purchasing fixed,
intangible and other long-term 46,469,287.11 44,629,746.28
assets
Cash paid for investment 1,097,791.00 234,942.68
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
1,854,670.00
investing activities
Subtotal of cash outflow from
49,421,748.11 44,864,688.96
investing activities
Net cash flows arising from
33,272,248.97 -9,754,481.45
investing activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
93
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Cash received from loans 1,059,138,910.42 514,641,824.68
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
1,059,138,910.42 514,641,824.68
financing activities
Cash paid for settling debts 332,556,137.54 108,788,409.39
Cash paid for dividend and profit
4,760,549.52 3,004,551.91
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
2,973,468.35
financing activities
Subtotal of cash outflow from
340,290,155.41 111,792,961.30
financing activities
Net cash flows arising from
718,848,755.01 402,848,863.38
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in -2,694,336.20 5,346,669.62
exchange rate
V. Net increase of cash and cash
477,017,942.02 255,142,493.78
equivalents
Add: Balance of cash and cash
2,238,884,137.50 1,701,307,578.13
equivalents at the period -begin
VI. Balance of cash and cash
2,715,902,079.52 1,956,450,071.91
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.
In 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 2,251,654,436.67 2,291,377,546.05
services
Write-back of tax received 34,967,339.65 10,868,319.19
Other cash received concerning
780,338.96 64,895,929.24
operating activities
Subtotal of cash inflow arising
2,287,402,115.28 2,367,141,794.48
from operating activities
Cash paid for purchasing 2,158,154,167.87 1,960,882,711.48
94
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
commodities and receiving labor
service
Cash paid to/for staff and workers 202,313,338.91 178,018,179.09
Taxes paid 58,947,750.93 139,676,410.23
Other cash paid concerning
105,638,364.68 87,972,200.92
operating activities
Subtotal of cash outflow arising
2,525,053,622.39 2,366,549,501.72
from operating activities
Net cash flows arising from
-237,651,507.11 592,292.76
operating activities
II. Cash flows arising from
investing activities:
Cash received from recovering
investment
Cash received from investment
1,590,353.30
income
Net cash received from disposal
of fixed, intangible and other 814,238.81 545,655.60
long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received concerning
38,216,769.95 26,949,532.49
investing activities
Subtotal of cash inflow from
39,031,008.76 29,085,541.39
investing activities
Cash paid for purchasing fixed,
intangible and other long-term 31,531,065.37 34,133,918.81
assets
Cash paid for investment 40,950,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
1,854,670.00
investing activities
Subtotal of cash outflow from
74,335,735.37 34,133,918.81
investing activities
Net cash flows arising from
-35,304,726.61 -5,048,377.42
investing activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Cash received from loans 904,950,576.65 452,929,528.78
Cash received from issuance of
bonds
Other cash received concerning
35,933,925.12 49,633,900.06
financing activities
95
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Subtotal of cash inflow from
940,884,501.77 502,563,428.84
financing activities
Cash paid for settling debts 221,905,837.54 24,205,440.00
Cash paid for dividend and profit
3,261,327.22 2,752,500.00
distributing or interest paying
Other cash paid concerning
3,759,390.71 514,570.91
financing activities
Subtotal of cash outflow from
228,926,555.47 27,472,510.91
financing activities
Net cash flows arising from
711,957,946.30 475,090,917.93
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in -4,144,705.53 3,899,166.64
exchange rate
V. Net increase of cash and cash
434,857,007.05 474,533,999.91
equivalents
Add: Balance of cash and cash
1,996,577,625.49 1,235,992,818.90
equivalents at the period -begin
VI. Balance of cash and cash
2,431,434,632.54 1,710,526,818.81
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
96
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
7. Consolidated Statement on Changes of Owners' Equity
Prepared by Hefei Meiling Co., Ltd.
Amount in this period
In RMB
Amount in this period
Owners' equity attributable to the parent company
Item General Minority’s
Less: Reasona Total owners’ equity
Paid-up capital risk equity
Capital reserves Treasury ble Surplus reserves Retained profit Others
(Share capital) provisio
Stock reserve
n
I. Balance at the end of last
year 763,739,205.00 1,478,904,455.90 337,902,735.75 608,723,517.81 -1,939,397.56 20,399,491.82 3,207,730,008.72
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning of
this year 763,739,205.00 1,478,904,455.90 337,902,735.75 608,723,517.81 -1,939,397.56 20,399,491.82 3,207,730,008.72
III. Increase/ Decrease in this
year (Decrease is listed -67,958.33 159,106,275.83 591,637.68 -671,692.96 158,958,262.22
with'"-")
(i) Net profit 159,106,275.83 1,890,652.45 160,996,928.28
(ii) Other consolidated income 591,637.68 394,425.13 986,062.81
Subtotal of (i)and (ii) 159,106,275.83 2,285,077.58 161,391,353.41
(III) Owners' devoted and
decreased capital -67,958.33 -2,956,770.54 -3,024,728.87
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others -67,958.33 -2,956,770.54 -3,024,728.87
(IV)Profit distribution
97
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 the
report period 763,739,205.00 1,478,836,497.57 337,902,735.75 767,829,793.64 -1,347,759.88 19,727,798.86 3,366,688,270.94
Amount in last period
In RMB
Amount in last period
Owners' equity attributable to the parent company
Item General Minority’s
Less: Reasona Total owners’ equity
Paid-up capital (Share risk equity
Capital reserves Treasury ble Surplus reserves Retained profit Others
capital) provisio
Stock reserve
n
I. Balance at the end of last year 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
98
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 beginning of
this year 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
III. Increase/ Decrease in this
year (Decrease is listed with'"-") -3,677,935.51 12,901,978.59 222,979,256.76 -660,435.25 -5,282,777.52 226,260,087.07
(i) Net profit 274,068,195.60 2,068,026.97 276,136,222.57
(ii) Other consolidated income -660,435.25 -440,290.17 -1,100,725.42
Subtotal of (i)and (ii) 274,068,195.60 -660,435.25 1,627,736.80 275,035,497.15
(III) Owners' devoted and
decreased capital -3,677,935.51 -3,677,935.51
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others -3,677,935.51 -3,677,935.51
(IV)Profit distribution 12,901,978.59 -51,088,938.84 -6,910,514.32 -45,097,474.57
1. Withdrawal of surplus
reserves 12,901,978.59 -12,901,978.59
2. Withdrawal of general risk
provisions
3. Distribution for owners
(shareholders) -38,186,960.25 -6,910,514.32 -45,097,474.57
4. Others
(V) Carrying forward internal
owners' equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
99
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
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 the
report period 763,739,205.00 1,478,904,455.90 337,902,735.75 608,723,517.81 -1,939,397.56 20,399,491.82 3,207,730,008.72
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
Prepared by Hefei Meiling Co., Ltd.
Amount in this period
In RMB
Amount in this period
Item Less: Reason
Paid-up capital General risk
Capital reserves Treasury able Surplus reserves Retained profit Total owners’ equity
(Share capital) reserve
Stock reserve
I. Balance at the end of last
763,739,205.00 1,497,898,194.51 337,684,570.07 615,672,089.65 3,214,994,059.23
year
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning
763,739,205.00 1,497,898,194.51 337,684,570.07 615,672,089.65 3,214,994,059.23
of this year
100
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
III. Increase/ Decrease in
this year (Decrease is listed 65,756,028.28 65,756,028.28
with'"-")
(i) Net profit 65,756,028.28 65,756,028.28
(ii) Other consolidated
income
Subtotal of (i)and (ii) 65,756,028.28 65,756,028.28
(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
4. Others
101
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
(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 1,497,898,194.51 337,684,570.07 681,428,117.93 3,280,750,087.51
report period
Amount in last year
In RMB
Amount in last year
Item Less: Reason
Paid-up capital General risk
Capital reserves Treasury able Surplus reserves Retained profit Total owners’ equity
(Share capital) reserve
Stock reserve
I. Balance at the end of last
763,739,205.00 1,497,898,194.51 324,782,591.48 537,741,242.57 3,124,161,233.56
year
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning
763,739,205.00 1,497,898,194.51 324,782,591.48 537,741,242.57 3,124,161,233.56
of this year
III. Increase/ Decrease in
this year (Decrease is listed 12,901,978.59 77,930,847.08 90,832,825.67
with'"-")
(i) Net profit 129,019,785.92 129,019,785.92
(ii) Other consolidated
income
Subtotal of (i)and (ii) 129,019,785.92 129,019,785.92
(III) Owners' devoted and
decreased capital
1. Owners' devoted capital
102
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV) Profit distribution 12,901,978.59 -51,088,938.84 -38,186,960.25
1. Withdrawal of surplus
12,901,978.59 -12,901,978.59
reserves
3. Withdrawal of general
risk reserve
3. Distribution for owners
-38,186,960.25 -38,186,960.25
(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
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 1,497,898,194.51 337,684,570.07 615,672,089.65 3,214,994,059.23
report period
Legal representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institution: Tang Bin
103
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(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 document [ZJXP(2010) No.
104
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 Shin wing 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 2014, 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 65,326,002 8.55%
1. State-owned shares - -
2. State-owned legal person’s shares 56,571,812 7.41%
3. Other domestic shares 8,423,371 1.10%
Including: Domestic non-state-owned legal person’s
shares 7,175,236 0.94%
Domestic natural person’s shares 1,248,135 0.16%
4. Foreign shares 330,819 0.04%
Including: Foreign legal person’s shares - -
Foreign natural person’s shares 330,819 0.04%
II. Unrestricted shares 698,413,203 91.45%
1. RMB Ordinary shares 535,880,022 70.17%
2. Domestically listed foreign shares 162,533,181 21.28%
3. Overseas listed foreign shares - -
4. Others - -
III. Total shares 763,739,205 100.00%
(II) Business nature and its business activities
105
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 2014, Sichuan Changhong and its accord actionist totally held 24.88% shares of the
Company and is the first largest shareholder; Changhong Group held 23.20% 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.
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 standards 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 control of the company being absorbed
106
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 ASBEs No. 33
Consolidated Financial Statements and relevant supplementary regulations. All significant transactions and
balances between the Company and its subsidiaries are eliminated for the purpose of consolidation. The
equity of subsidiaries not held by the parent company shall be presented separately as minority shareholders’
equity in consolidated shareholders’ equity.
Any difference arising from the inconformity of accounting year or accounting policies between the
subsidiaries and the Company shall be adjusted in the consolidated financial statements.
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
As for the foreign currency business, the Company converts the foreign currency amount into RMB
107
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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
108
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 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
109
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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
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 liabilities
When making the initial recognition for financial liabilities, the Company classifies the financial
liabilities into ones which are measured by fair value and whose change is recorded into prevailing gains and
losses, and other financial liabilities.
Financial liabilities which are measured by fair value and whose change is recorded into prevailing
gains and losses include tradable financial liabilities and financial liabilities which are measured by fair value
and whose change is recorded into prevailing gains and losses at the initial recognition day. Follow-up
measurements are made by fair value. Recorded into prevailing gains and losses are the gains or losses
formed through fair value change and dividend and interest expenditure regarding to the financial liabilities.
110
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
As for other financial liabilities, effective interest rate method is adopted and follow-up measurement is
made according to amortized cost.
3. Method for recognition of fair value of financial assets and liabilities
For those financial instruments existing in active markets, market quotation in the active market is used
to confirm their fair values. In active market, the Company takes the present bid price of already-held
financial assets or plan-to-undertake financial liabilities as the fair values of relevant assets and liabilities; the
Company takes the present offer price of plan-to-buy financial assets and –already-undertaken liabilities as
the fair values of relevant assets and liabilities. In the situation that there are no present bid and offer price
for financial assets and liabilities, while there is no material change in economic environment after the latest
business day, then fair value of the financial assets and liabilities is to confirm pursuant to the latest business
market quotation.
Fair value of the financial instruments which have no active market is confirmed by adoption of
estimation technology. Estimation technology includes reference to the price applied by parties which know
well situation and are willing to make deals in the latest market business, reference to the current fair value of
other financial assets which are the same in principle, reference to discounted cash flow method and option
pricing model.
(XI) Bad debt provision for accounts receivable
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.
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.
Account receivables were divided as follow categories at period-end, which was performed impairment
test in way of individual or group, and withdrawal bad debt provision:
1. Account receivable with single significant amount:
If totally amount takes over 80% of the total for over 5% occupied, than
Determine basis or amount
5% of single amount in total amounts recognized as single significant
standards for single significant
amount; if totally amount takes less than 80% of the total for over 5%
amount
occupied, than lower recognition standards till qualified 80% in total
Withdrawal bad debt provision according to difference between the
Method of bad debt provision
current value of future cash flow and book values; if there has no
accrual for account receivable
impairment been found in individual test, withdrawal bad debt provision
with single major amount
while testing by group
2. Account receivable withdrawal bad debt provision based on combination:
111
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Basis for combination recognized
Combination 1 Account receivable except combination 2
Employee reserve fund, foreign investment amount, contact with related party in
Combination 2 consolidated statement of Changhong Group, export tax refund receivable,
account receivable with L/C or insurance, government subsidy etc.
Methods on withdrawal of bad debt provision based on combination
Combination 1 Withdrawal bad debt provision by proportion in different age group
Combination 2 Risks are under control without bad debt provision accrual
3. In combination 1, withdrawal proportion of bad debt provision for account receivable
based on age analysis:
Withdrawal proportion of account Withdrawal proportion of other
Age
receivable (%) account receivable (%)
Within 1year(1year included ) 5 5
1－2years 15 15
2－3 years 35 35
3－4 years 55 55
4－5 years 85 85
Over 5 years 100 100
4. 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
bad debt provision future cash flow
Withdrawal method for bad Impairment test on the current value of predicted future cash flow, bad
debt provision debt provision withdrawal.
(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
112
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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
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. Mould expense will amortize in installment 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
113
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 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 combine financial statement; makes calculation for investments in joint-ventures and
114
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 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
115
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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.
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
116
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 Machinery equipments 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 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.
117
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 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
118
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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.
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
119
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered
by employees or compensation to the termination of employment relationship such as short-term wages,
post-employment benefits, compensation for the termination of employment relationship and other long-term
employee welfare. The Company recognizes employee benefits as liabilities during the accounting period in
which employees render their services and allocates it to related cost of assets and expenses based on the
beneficiaries.
The amount of employee benefit payables arisen from the profit sharing plan will be recognized upon
the approval of the Provision and Allocation Proposal of Annual Results Incentive Fund by the shareholders’
general meeting of the Company, therefore the annual results incentive fund the Company implements is
short-term profit sharing plan.
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) Estimated liabilities
If the business in connection with such contingencies as a security involving a foreign party, commercial
acceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of the
following conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existing
obligation of the Company; performance of the obligation is likely to cause economic benefits to flow out of
the enterprise; the amount of the obligation is reliably measurable.
(XXV) Principle of recognition of revenue
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor providing
120
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 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
121
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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.
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.
122
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(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, and estimates the realizable net value of inventories by reference to the
projected selling price of similar inventories less sales expenses and related taxes on a regular basis, so as to
evaluate the rationality of the provision 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
123
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
could affect the balance of income tax expense (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. Projected 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. Taxation
(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
124
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Tax(expenses) Tax base Tax rate
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 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 Electric 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. approved the re-examination of high-tech
enterprise dated 25 December 2013, and was granted the ―Certificate of High-tech Enterprise‖ (certificate
No.: GR201051000154) with a maturity of three years. Being approved and file by First Branch of Local
Tax Bureau of Mianyang City on 2 May 2013, Sichuan Changhong Air Conditioner Co., Ltd. was subject to
enterprise income tax at a rate of 15%.
Subsidiary Mianyang Meiling Refrigeration Co., Ltd. approved the re-examination from Economy,
Trade and Information Commission of Sichuan Municipality (CJXCYH[2014] No.408) on 9 May 2014, levy
enterprise income tax based on rate of 15% and execute since 2014 with valid of 7 years.
125
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 State
Holdin ments Amount in
Registered invested Voting Minority
Registr Balance of other g combi minority interest
Business capital at right interest
Name Type ation propor ned used for writing Note
nature (RMB’0000 period-en items materially proport
place tion (Y/N) down minority
) d forming net ion (%)
(%) gain and loss
(RMB’00 investment to
00) subsidiary
1. Subsidiaries established through direct investment
(1) Secondary subsidiary
Manufact
Zhongke Meiling Cryogenics Technology Limited
Hefei uring and 6,000.00 4,200.00 - 70.00 70.00 Y 26,381,805.67 -
Limited Company(1) Company
sales
Manufact
Mianyang Meiling Refrigeration Co., Limited Mianya
uring and 10,000.00 9,500.00 - 95.00 100.00 Y - -
Ltd.(2) Company ng
sales
Hefei Meiling Appliance Marketing Co., Limited
Hefei Sales 5,500.00 5,490.00 - 99.82 100.00 Y - -
Ltd(3) Company
Manufact
Limited Jingdez
Jiangxi Meiling Appliance Co., Ld.(4) uring and 5,000.00 7,900.00 - 98.75 100.00 Y - -
Company hen
sales
Other R&D and
Mianyang Meiling Software Technology Mianya
Limited sales of 500.00 495.00 - 99.00 100.00 Y - -
Co., Ltd. (5) ng
Company software
(2) Child subsidiary
ChanghongRubaTradingCompany(Private) Limited
Pakistan Sales $300.00 $180.00 - 60.00 60.00 Y 5,561,954.07 2,066,219.48
Limited(6) Company
Luohe Meiling Appliance Marketing Co., Limited
Luohe Sales 500.00 343.49 - 64.00 64.00 Y 1,471,118.62 328,881.38
Ltd(7) Company
Wuhu Meiling Appliance Marketing Co., Limited
Wuhu Sales 600.00 216.00 - 38.50 38.50 Y -1,498,947.78 5,188,947.78
Ltd.(8) Company
Changchun Meiling Appliance Marketing Limited Changc
Sales 300.00 291.00 - 97.00 97.00 Y -220,836.16 310,836.16
Co., Ltd.(9) Company hun
126
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 State
Holdin ments Amount in
Registered invested Voting Minority
Registr Balance of other g combi minority interest
Business capital at right interest
Name Type ation items materially propor ned used for writing Note
nature (RMB’0000 period-en proport
place tion (Y/N) down minority
) d forming net ion (%)
(%) gain and loss
(RMB’00 investment to
00) subsidiary
Bengbu Meiling Appliance Marketing Co., Limited
Bengbu Sales 300.00 262.20 - 87.40 87.40 Y 345,367.83 32,632.17
Ltd(10) Company
Hengyang Meiling Appliance Marketing Limited Hengya
Sales 300.00 123.00 - 41.00 41.00 Y -1,364,423.02 3,134,423.02
Co., Ltd.(11) Company ng
Nanchang Meiling Appliance Marketing Limited Nancha
Sales 300.00 108.00 - 36.00 36.00 Y -4,139,988.98 6,059,988.98
Co., Ltd.(12) Company ng
Jinzhou Meiling Appliance Marketing Co., Limited
Jinzhou Sales 400.00 252.62 - 80.00 80.00 Y 29,152.72 770,847.28
Ltd(13) Company
Shenyang Meiling Appliance Marketing Limited Shenyan
Sales 300.00 284.40 - 94.80 94.80 Y -280,982.66 436,982.66
Co., Ltd(14) Company g
Wuhan Meiling Appliance Marketing Co., Limited
Wuhan Sales 500.00 455.00 - 91.00 91.00 Y -447,532.13 897,532.13
Ltd(15) Company
Zhengzhou Meiling Appliance Marketing Limited Zhengzh
Sales 300.00 108.00 - 46.00 46.00 Y -1,401,965.10 3,021,965.10
Co., Ltd(16) Company ou
Shijiazhuang Meiling Appliance Marketing Limited Shijiazh
Sales 300.00 108.00 - 36.00 36.00 Y 903,690.35 1,016,309.65
Co., Ltd(17) Company uang
Mianyang Meiling Appliance Marketing Limited Mianya
Sales 500.00 425.00 - 85.00 85.00 Y 1,003,301.60 -
Co., Ltd.(18) Company ng
Chengdu Meiling Appliance Marketing Co., Limited Chengd
Sales 500.00 417.00 - 83.40 83.40 Y -2,902,718.39 3,732,718.39
Ltd.(19) Company u
Guiyang Meiling Appliance Marketing Co., Limited
Guiyang Sales 300.00 129.72 - 44.00 44.00 Y 80,460.02 1,599,539.98
Ltd(20) Company
Fuzhou Meiling Appliance Marketing Co., Limited
Fuzhou Sales 300.00 297.00 - 99.00 99.00 Y -43,848.92 73,848.92
Ltd.(21) Company
Nanjing Meiling Appliance Marketing Co., Limited
Nanjing Sales 300.00 297.00 - 99.00 99.00 Y -96,182.26 126,182.26
Ltd.(22) Company
Hefei Meiling White Goods Marketing Co., Limited
Hefei Sales 600.00 510.00 - 85.00 85.00 Y -126,604.72 1,026,604.72
Ltd.(23) Company
Taiyuan Meiling Appliance Marketing Co., Limited
Taiyuan Sales 400.00 201.55 - 85.25 85.25 Y -107,591.48 697,591.48
Ltd(24) Company
127
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 State
Holdin ments Amount in
Registered invested Voting Minority
Registr Balance of other g combi minority interest
Business capital at right interest
Name Type ation items materially propor ned used for writing Note
nature (RMB’0000 period-en proport
place tion (Y/N) down minority
) d forming net ion (%)
(%) gain and loss
(RMB’00 investment to
00) subsidiary
Changsha Meiling Appliance Marketing Limited Changsh
Sales 500.00 180.00 - 36.00 36.00 Y 1,073,822.91 2,126,177.09
Co., Ltd.(25) Company a
Hohhot Meiling Appliance Marketing Co., Limited
Hohhot Sales 300.00 232.35 - 83.00 83.00 Y 185,104.55 324,895.45
Ltd.(26) Company
Hanzhou Meiling Appliance Marketing Co., Limited Hanzho
Sales 300.00 265.50 - 88.50 88.50 Y -1,190,044.08 1,535,044.08
Ltd(27) Company u
Chongqing Meiling Appliance Marketing Limited Chongqi
Sales 300.00 255.00 - 85.00 85.00 Y -88,277.76 538,277.76
Co., Ltd.(28) Company ng
Kunming Meiling Appliance Marketing Limited Kunmin
Sales 300.00 166.17 - 86.50 86.50 Y -106,429.07 511,429.07
Co., Ltd(29) Company g
Shanghai Meiling Appliance Marketing Limited Shangha
Sales 300.00 297.00 - 99.00 99.00 Y -125,886.02 155,886.02
Co., Ltd.(30) Company i
Nantong Meiling Appliance Marketing Co., Limited
Nantong Sales 300.00 174.00 - 92.00 92.00 Y -169,610.53 409,610.53
Ltd(31) Company
Neijiang Meiling Appliance Marketing Co., Limited
Neijiang Sales 300.00 277.71 - 92.33 92.33 Y 273,596.08 -
Ltd(32) Company
Tianjin Meiling Appliance Marketing Co., Limited
Tianjin Sales 300.00 256.50 - 85.50 85.50 Y -492,934.44 927,934.44
Ltd.(33) Company
Urumchi Meiling Appliance Marketing Co., Limited
Urumchi Sales 300.00 270.00 - 90.00 90.00 Y 566,977.56 -
Ltd(34) Company
Harbin Meiling Appliance Marketing Co., Limited
Harbin Sales 300.00 108.00 - 36.00 36.00 Y -1,999,831.80 3,919,831.80
Ltd.(35) Company
Beijing Meiling Appliance Marketing Co., Limited
Beijing Sales 300.00 297.00 - 99.00 99.00 Y -151,095.72 181,095.72
Ltd(36) Company
Lanzhou Meiling Appliance Marketing Co., Limited
Lanzhou Sales 300.00 158.65 - 51.50 51.50 Y 3,039,720.28 -
Ltd(37) Company
Xi’an Meiling Appliance Marketing Co., Limited
Xi’an Sales 300.00 183.00 - 61.00 61.00 Y -523,260.97 1,693,260.97
Ltd(38) Company
Guangzhou Meiling Appliance Marketing Limited Guangz
Sales 500.00 430.00 - 86.00 86.00 Y -2,489,739.72 3,189,739.72
Co., Ltd.(39) Company hou
128
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 State
Holdin ments Amount in
Registered invested Voting Minority
Registr Balance of other g combi minority interest
Business capital at right interest
Name Type ation items materially propor ned used for writing Note
nature (RMB’0000 period-en proport
place tion (Y/N) down minority
) d forming net ion (%)
(%) gain and loss
(RMB’00 investment to
00) subsidiary
Jinan Meiling Appliance Marketing Co., Limited
Jinan Sales 300.00 108.00 - 36.00 36.00 Y -1,219,541.69 3,139,541.69
Ltd(40) Company
2. Subsidiaries obtained through business combination under the same control
(1) Secondary Subsidiary
Manufact
Sichuan Changhong Air Conditioner Co., Limited Mianya
uring and 20,000.00 30,560.00 - 100.00 100.00 Y - -
Ltd.(41) Company ng
sales
Manufact
Zhongshan Changhong Electric Co., Limited Zhongsh
uring and 12,000.00 11,225.64 - 90.00 100.00 Y - -
LTD(42) Company an
sales
3. Subsidiaries obtained through business combination under the different control
(1) Secondary Subsidiary
Controllin
Limited
Hefei Meiling Group Holding Co., Ltd.(43) Hefei g 8,000.00 11,363.00 - 100.00 100.00 Y - -
Company
company
(2) Child subsidiary
Manufact Y
Meiling Equator Appliance (Hefei) Co., Limited
Hefei uring and 2,479.31 1,859.49 - 100.00 100.00 - -
Ltd.(44) Company
sales
Manufact Y
Limited
Hefei Equator Appliance Co., Ltd(45) Hefei uring and 1,200.00 867.06 - 100.00 100.00 - -
Company
sales
Manufact Y
Hefei Meiling Nonferrous Metal Products Limited
Hefei uring and 2,428.68 2,199.64 - 100.00 100.00 - -
Co., Ltd(46) Company
sales
Manufact Y
Limited
Hefei Meiling Precision Tube Co., Ltd.(47) Hefei uring and 100.00 80.00 - 100.00 100.00 - -
Company
sales
129
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 State
Holdin ments Amount in
Registered invested Voting Minority
Registr Balance of other g combi minority interest
Business capital at right interest
Name Type ation items materially propor ned used for writing Note
nature (RMB’0000 period-en proport
place tion (Y/N) down minority
) d forming net ion (%)
(%) gain and loss
(RMB’00 investment to
00) subsidiary
Manufact Y
Hefei Meiling Packing Products Co., Limited
Hefei uring and 1,740.00 952.00 - 51.72 100.00 - -
Ltd(48) Company
sales
Manufact Y
Hefei Meiling Environment-friendly Limited
Hefei uring and 80.00 64.00 - 100.00 100.00 - -
Package Materials Co., Ltd.(49) Company
sales
Note: ―Investment amount at year-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.
130
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(1) Zhongke Meiling Cryogenics Technology Limited Company (hereinafter referred to as Zhongke
Meiling Company) was established on Oct. 29, 2002 by the company and CAS’s Physical & Chemical
technology Research, whose registered capital was RMB60, 000,000 including material contribution of RMB
35,573,719.70 which accounted for 70% of registered capital and cash contribution of RMB 6,426,280.30.
CAS’s Physical & Chemical technology Research made contributions by New mixed throttle refrigeration
technology and technical License of Application research in super low temperature storage box that was
appraised RMB 18,000,000 accounting for 30% of registered capital. The actual 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: Wang Yong; Address: Meiling Economy Development Zone,
Feidong Longgang, Hefei City. Business Scope: R & D, exploitation, manufacture, sales and service of
cryogenic cooling equipment and products; self-operating and agency for the import-export business of
various commerce and technology.
(2) 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, 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. The paid-in capital has been verified by Capital Verification
Report ［XYZH/2010CDA6040］from Chengdu Branch of Shine wing CPA CO., Ltd. 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. In
September 2013, Jiangxi Meiling Refrigeration was combined by Jiangxi Meiling Appliance Co., Ld, than 5
percent equity was transfer to Jiangxi Meiling Appliance.
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.
(3) 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
131
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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 molding machine, computer
water heaters, plastic products, packaging materials and accessories, electronic products and accessories,
general merchandise sales
(4) 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 Development District,
Jingdezhen; Legal Representative: Liao Tao; Business Scope: R&D, manufacturing and sales of refrigerator
and its accessories.
(5) Mianyang Meiling Software Technology Co., Ltd. (Mianyang Software) was established as a
limited company in January 2014 invested by Hefei Meiling and subsidiary Mianyang Meiling Refrigeration.
Register capital of Mianyang Software was RMB 5 million, and RMB 4.95 million invested by Meiling
Company in cash, a 99% in total register capital; Mianyang Meiling Refrigeration contributed RMB 50000
with 1% occupied in registered capital. The contributions have been verified by the capital verification report
[Chuan Jin Lai Yan Zi (2014) No-B039] issued from Sichuan Jinlai CPA Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 510703000059200; Address: No.
303, Jiuzhou Avenue, Peicheng District, Mianyang City; Legal Representative: Zhang Xiaolong; Business
Scope: R&D and sales of controlling and intelligent software for home appliance of AC, washing machine,
refrigerator and freezer.
(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
132
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
of USD 3 million with US$ 1.8 million invested from Zhongshan Changhong Appliance Co., Ltd. in cash,
60% of shares held while UAE RUBA invested US$ 1.2 million with 40% shares held. The company
registered in Lahore Pakistan, legal representative: Teng Guangsheng; Business scope: sales of
air-conditioner and other household apparatus.
(7) 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; 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. In 2013,
majority equity 27% was purchased by the Company, the difference of RMB -57,933.54 was written-down
the capital reserve, that between the consideration and net assets of majority shareholders.
(8) 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 Lianbin;
Business scope: sales and maintenance of household apparatus. In 2014, majority equity 2.5% was purchased
by the Company, the difference of RMB -67,958.33 was written-down the capital reserve, that between the
consideration and net assets of majority shareholders.
(9) 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.
(10) 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 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 Lianbin; 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. In 2013, majority equity 2.4% was purchased by the Company, the
difference of RMB -27,931.32 was written-down the capital reserve, that between the consideration and net
assets of majority shareholders.
(11) 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,
133
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Yujia Community, Yujia Group, Jiangdong Village, Zhuhui District, Hengyang City; Legal representative:
Liu Xiangyang; 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.
(12) 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.
(13)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. In 2013, majority equity
20% was purchased by the Company, the difference of RMB -403,465.42 was written-down the capital
reserve, that between the consideration and net assets of majority shareholders.
(14)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.
(15)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.
(16)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 Xiangdong;
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. In 2013,
majority equity 10% was purchased by the Company, the difference of RMB -291,438.06 was written-down
the capital reserve, that between the consideration and net assets of majority shareholders.
134
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(17)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 license project), computer heater, plastic products(excluding medical
plastic products, and advance licenses 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).
(18)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; 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. In 2013,
majority equity 33% was purchased by the Company, the difference of RMB 651,778.53 was reckoned into
capital reserve, that between the consideration and net assets of majority shareholders.
(19) 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.
(20)Guiyang Meiling Appliance Marketing Co., Ltd. (Guiyang Meiling) was established on 24 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. In 2013, majority equity
18% was purchased by the Company, the difference of RMB -475,010.23 was written-down the capital
reserve, that between the consideration and net assets of majority shareholders.
(21)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
135
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
products, electronic products and accessories, sales of general merchandise; maintenance of household
apparatus.
(22)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.
(23) 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: Zhou Wenhui; 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.
(24)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. In 2013, majority equity 45.5% was purchased by
the Company, the difference of RMB -886,252.41 was written-down the capital reserve, that between the
consideration and net assets of majority shareholders.
(25)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 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.
(26)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. In 2013, majority equity
136
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
28% was purchased by the Company, the difference of RMB -114,725.81 was written-down the capital
reserve, that between the consideration and net assets of majority shareholders.
(27) 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.
(28) 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.
(29) 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. In 2013, majority equity 40% was purchased by the
Company, the difference of RMB -461,243.18 was written-down the capital reserve, that between the
consideration and net assets of majority shareholders.
(30) 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.
(31) 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 1.74
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 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. In 2013, majority equity 34% was
purchased by the Company, the difference of RMB -704,781.47 was written-down the capital reserve, that
between the consideration and net assets of majority shareholders.
137
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(32) 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; 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. In 2013, majority equity
12.33% was purchased by the Company, the difference of RMB 24,370.47 was reckoned into capital reserve,
that between the consideration and net assets of majority shareholders.
(33) 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.
(34) 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.
(35) 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.
(36) 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: Fang Rongxin; Business
scope: sales of household apparatus, computer software and assistant equipments, daily grocery, electronic
products, general equipments, specific equipments; maintenance of household apparatus.
(37)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
138
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
machine of computer control, digital products, computer heater, plastic products, electronic products and
accessories and general merchandise; maintenance of household apparatus. In 2013, majority equity 11% was
purchased by the Company, the difference of RMB 194,136.96 was reckoned into capital reserve, that
between the consideration and net assets of majority shareholders.
(38)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.
(39)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.
(40) 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 3 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.
(41) 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; 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, ASHPWH and parts, equipment rental, external processing services of spare parts, and sales of
metal materials (excluding gold and silver)
139
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(42) Zhongshan Changhong Electric Co., Ltd.( Zhongshan Changhong), 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.
In 2014, the Company and subsidiary Sichuan Air Condition increased capital RMB 36 million and
RMB 4 million respectively for Zhongshan Changhong based on original shareholding ratio, registered
capital of Zhongshan Changhong comes to RMB 120 million after capital increased, and the changes of
registration for industrial and commerce completed on 24 June 2014.
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: Du Zhixiao; Business Scope: Mainly engaged in production, processing, sale of air
conditioners, television sets, laser disc players, audio equipments, computers and spare parts of these
products.
(43) Hefei Meiling Group Holding Co., Ltd (Meiling Group), 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 has 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.
(44) 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
140
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
million in intangible assets, amounting to US$0.75 million, accounting 25% of the registered capital. The
above mentioned investment verified by the verification report of [WYAYZ (2004) No. 135] from Anhui
Yongan CPAs Co., Ltd. In July 2007, approved by [HWJ(2007) No.136] from Foreign Trade Economic
Cooperation Bureau of Hefei City, 25% equity held by EQUATOR transferred to Anhui Meiling Electric Co.,
Ltd. Totally. The Company’s register capital came into RMB 24,793,200 after transference, and was not the
joint-venture any more. 25% 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
(45) Hefei Equator Appliance Co., Ltd.( Equator Appliance) 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: Huang Danian; 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)
(46) Hefei Meiling Nonferrous Metal Products Co., Ltd. (Nonferrous Metal) 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
141
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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
(47) Hefei Meiling Precision Tube Co., Ltd. (Precision Tube for short) was set up in March 2004 with RMB 1
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.
(48) Hefei Meiling Packing Products Co., Ltd. (Packing Products) was the Sino-foreign joint venture jointly
set up by Hefei Paper Box Plant, original Meiling Group and Singapore Anda Development Co., Ltd in December 1993,
which approved by [HWJZ(1993) No. 0444] of Foreign Trade and Economic Committee of Hefei City with its
register capital of US$ 3.067 million. The register capital while established have been verified by
[HKHY(1995) No. 5] from original Hefei CPAs Co., Ltd. On December 30, 2002, being approved by
[HWJ(2002) No. 259] of foreign trade Economic Cooperation Bureau of Hefei City, 48.28% equity owned
by Hefei Paper Box Plant transferred to the Company. On June 17, 2005, 25% equity owned by Singapore
Anda Development Co., Ltd transferred to original Meiling Group freely by one-time. The Company turned into
domestic-capital 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.
(49) 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, molded pulp,
honeycomb paperboard and materials of granulation package.
(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:
142
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
1. Enterprise in consolidation scope in the Period:
Reasons included in Ratio of shares Closing net Net profit
Name of the company
consolidation scope holding assets (RMB) (RMB)
Mianyang Meiling Software
Newly established 99% 4,961,219.38 -38,780.62
Technology Co., Ltd.
2. Enterprise is no longer in consolidation scope in the Year:
Reasons out of the Original shares Net asstes at Net profit at
Name of the company
consolidation scope helding disposal day disposal day
Xinxiang Meiling Appliance
Marketing Co., Ltd.
Liquidation 86% 512,,565.17 -239,862.05
Liu’an Meiling Appliance Marketing
Co., Ltd.
Liquidation 36% 4,614,008.99 -34,756.36
(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:
Items Amount for Exchan Amount for Amount for Exchan Amount for
Items
FC ge rate RMB FC ge rate RMB
Current Current liability
1,271,981,712 0.0623 79,293,304.79 1,070,230,246 0.0623 66,716,441.19
assets
Non-current
21,165,457 0.0623 1,319,420.74 Total liability 1,070,230,246 0.0623 66,716,441.19
assets
Total assets 1,293,147,170 80,612,725.53 259,900,258 0.0734 19,070,433.88
Paid-in capital
Retained profit -36,983,335 -2,927,883.07
Total owners’ equity 222,916,923 13,896,284.34
Liability and total
1,293,147,170 80,612,725.53
equity
Difference between foreign currency conversion -2,246,266.47
Including: Difference between foreign currency
-1,347,759.88
conversion attributable to parent company
VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below, unless otherwise specified,
―period-beginning‖ refers to Jan. 1, 2014; ―period-end‖ refers to June 30, 2014; ―the Period‖ refers to Jan. 1
to June 30, 2014; ―same period of last year‖ refers to Jan. 1 to June 30, 2013; the currency is RMB.
1. Monetary fund
Item Period-end Period-begin
143
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Exchang Exchange
Original currency RMB converted Original currency RMB converted
e rate rate
Cash holdings 150,292.60 107,261.58
RMB 81,906.32 81,906.32 98,349.15 98,349.15
Rupee 1,097,017.00 0.0623 68,386.28 153,488.00 0.0581 8,912.43
Bank deposit 2,616,457,944.01 2,181,795,210.30
RMB 2,579,929,920.46 2,579,929,920.46 2,151,093,902.61 2,151,093,902.61
USD 5,143,570.66 6.1528 31,647,361.56 4,585,243.48 6.0969 27,955,770.99
EUR 302,560.56 8.3946 2,539,874.88 8,794.57 8.4189 74,040.61
AUD 4.74 5.8064 27.52 1,359.00 5.4301 7,379.50
Rupee 37,549,240.83 0.0623 2,340,759.59 45,880,835.63 0.0581 2,664,116.60
Other Monetary
129,310,438.79 84,290,332.28
fund
RMB 113,208,005.04 113,208,005.04 72,801,113.97 72,801,113.97
USD 2,617,090.39 6.1528 16,102,433.75 1,668,761.55 6.0969 10,174,272.30
EUR 5.18 8.4189 43.61
AUD 242,150.68 5.4301 1,314,902.41
Total 2,745,918,675.40 2,266,192,804.16
Balance at period-end saving overseas amounting to RMB 2,409,145.87; 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.
The amount saving in Sichuan Changhong Group Finance Co., Ltd. (Changhong Finance Company) at
period-end converted as RMB 36,448,524.53 in total, including RMB demand deposit RMB 6,166,645.71
and RMB 30,281,878.82 fixed deposit. Found more in Note VIII (II)
2. Notes receivable
(1) Category of notes receivable
Category Period-end Period-begin
Bank acceptance bill 2,131,604,414.65 1,707,852,913.72
Commercial acceptance bill 26,702,115.39 14,187,009.29
Total 2,158,306,530.04 1,722,039,923.01
(2) Top five notes mortgaged by end of the period:
Category Issuing company Issuing Maturity Amount Note Serials
Suning purchasing centre of
Bankacceptance Suning Commerce Group Co., 2014/05/29 2014/11/29 5,670,866.38 016171462
Ltd.
144
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Changsha Tongcheng Holdings 30900053263
Bankacceptance 2014/03/28 2014/09/28 5,000,000.00
Co., LTD 89729
Beijing Dazhong Electrical
Bankacceptance 2014/03/28 2014/09/28 4,878,576.92 014744891
Appliances Chain Sales Co., Ltd.
Suning purchasing centre of
Bankacceptance Suning Commerce Group Co., 2014/05/16 2014/11/16 4,829,107.55 015789074
Ltd.
Suning purchasing centre of
Bankacceptance Suning Commerce Group Co., 2014/05/29 2014/11/29 4,406,721.22 016170496
Ltd.
Total 24,785,272.07
(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
Electronic bank Suning purchasing centre of Suning
2014/5/15 2014/11/15 36,729,289.41 015767601
acceptance bill Commerce Group Co., Ltd.
Electronic bank Suning purchasing centre of Suning
2014/3/6 2014/9/6 20,000,000.00 014128453
acceptance bill Commerce Group Co., Ltd.
Electronic bank Suning purchasing centre of Suning
2014/6/20 2014/12/19 18,477,034.28 016648205
acceptance bill Commerce Group Co., Ltd.
Electronic bank Suning purchasing centre of Suning
2014/6/12 2014/12/12 10,705,738.79 016423675
acceptance bill Commerce Group Co., Ltd.
Zhejiang Suning Commerce
Bankacceptance 2014/4/4 2014/10/4 10,000,000.00 3030005122543314
Trading Co., Ltd.
Total 95,912,062.48
(4) Notes transfer to account receivable due to the failure implementation from drawer: Nil
(5) Note has been discount at period-end without expiration:
Category Issuing company Issuing Maturity Amount Note Serials
Sichuan Fulai Industrial Group Co.,
Bankacceptance 2014/03/20 2014/09/20 7,300,000.00 3130005223214856
Ltd.
Suning purchasing centre of Suning
Bankacceptance 2014/05/09 2014/11/09 6,638,140.62 3130005130292077
Commerce Group Co., Ltd.
Anqing Chaojie Electric Appliance
Bankacceptance 2014/02/28 2014/08/28 4,800,000.00 3190005120526328
Co., Ltd.
Bankacceptance Chengdu Gome Appliance Co., Ltd. 2014/01/28 2014/07/28 3,148,654.01 3130005131497097
Suning purchasing centre of Suning
Bankacceptance 2014/02/27 2014/08/27 3,128,291.24 3190005120486764
Commerce Group Co., Ltd.
Total 25,015,085.87
3. Accounts receivable
(1) Category of account receivable
Period-end
Category
Book balance Bad debt provision
145
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Amount Ratio (%) Amount Ratio (%)
Significant account receivable and withdrawal
bad debt provision single
Account receivable withdrawal bad debt
provision by combination
Combination 1 1,379,558,892.15 86.66 75,340,361.96 5.46
Combination 2 211,021,813.10 13.25 -
Subtotal of combination 1,590,580,705.25 99.91 75,340,361.96 4.74
Account receivable with single minor amount
1,411,932.10 0.09 403,098.44 28.55
but withdrawal bad debt provision singly
Total 1,591,992,637.35 100.00 75,743,460.40 4.76
Net value 1,516,249,176.95
(Continued)
Period-begin
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Significant account receivable and withdrawal
2,081,116.25 0.23 427,600.03 20.55
bad debt provision single
Account receivable withdrawal bad debt
— — — —
provision by combination
Combination 1 728,155,238.01 80.80 43,658,146.52 6.00
Combination 2 168,104,645.76 18.65 - -
Subtotal of combination 896,259,883.77 99.45 43,658,146.52 4.87
Account receivable with single minor amount
2,896,238.75 0.32 1,887,405.09 65.17
but withdrawal bad debt provision singly
Total 901,237,238.77 100.00 45,973,151.64 5.10
Net value 855,264,087.13
Net value of account receivable at period-end shows 77.28% up over that of period-begin, mainly
because sales in peak seasons in the Period increased.
1) Account receivable with single major amount and withdrawal bad debt provision singly at period-end:
Nil
2) Account receivable with withdrawal bad debt provision for combination 1 by aging account
Period-end Period-begin
Book Age Book balance Bad debt Book balance Bad debt
Amount Ratio (%) provision Amount Ratio (%) provision
Within 1
1,366,441,991.76 99.04 68,322,099.59 713,653,885.00 98.00 35,682,694.25
year
146
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Period-end Period-begin
Book Age Book balance Bad debt Book balance Bad debt
Amount Ratio (%) provision Amount Ratio (%) provision
1-2 years 4,365,593.20 0.32 654,838.98 2,592,597.30 0.36 388,889.60
2-3 years 1,468,437.08 0.11 513,952.98 4,272,472.40 0.59 1,495,365.34
3-4 years 2,690,251.61 0.19 1,479,638.39 2,663,437.79 0.37 1,464,890.78
4-5 years 1,485,243.20 0.11 1,262,456.72 2,310,259.77 0.32 1,963,720.80
Over 5
3,107,375.30 0.23 3,107,375.30 2,662,585.75 0.36 2,662,585.75
years
Total 1,379,558,892.15 100.00 75,340,361.96 728,155,238.01 100.00 43,658,146.52
3) Account receivable without bad debt provision withdrawal for combination 2
Combination Book balance
Account connect with related parties with no withdrawal bad debt
152,801,852.55
provision
Account receivable with Letter of Credit 58,219,960.55
Total 211,021,813.10
4) Account receivable with single minor amount but withdrawal bad debt provision singly
Bad debt Provision
Unit Book balance Accrual reasons
amount proportion
Eliyahu Electrical Marketing Ltd 309,742.70 309,742.70 100.00% Credit guarantee payment balance
Foshan Honghui Air Conditioner According to the balance after the
1,102,189.40 93,355.74 8.47%
Appliance Co., Ltd. expected insurance provision
Total 1,411,932.10 403,098.44
(2) Withdraw of account receivable verified in previous years: received 741,623.00 Yuan receivables
from client for year of 2010 that verified in the Period.
(3) Account receivable actually written-off in the Period: Nil
(4) Arrears of the shareholders holding more than 5% (including 5%) shares with voting rights of the
Company
Period-end Period-begin
Unit Bad debt Amount in Bad debt
Amount in arrear
provision arrear provision
Sichuan Changhong Electric Co., Ltd. - - 2,113,318.22 -
(5) Top five account receivable amounting as RMB 562,038,809.84, a 35.30% in total account
receivable at period-end.
(6) Details of account receivable from related parties found in Note. VIII (III)
(7) Balance of accounts receivable in foreign currencies
147
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Period-end Year-begin
Currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
USD 47,787,611.73 6.1528 294,027,617.46 21,690,745.23 6.0969 132,246,304.59
EUR - - - -
AUD 707,286.38 5.8064 4,106,787.65 1,141,705.80 5.4301 6,199,576.66
Rupee 608,931,900.00 0.0623 37,959,840.35 176,800,000.00 0.0581 10,266,068.80
Total 336,094,245.46 148,711,950.05
(8) Account receivable derecognization: Nil
4. Accounts paid in advance
(1) Account paid in advance classify according to age structure
Period-end Period-begin
Item
Amount Ratio (%) Amount Ratio (%)
Within 1 year 61,765,784.05 90.13 67,141,425.60 91.18
1－2 years 6,198,687.79 9.04 3,356,947.39 4.56
2－3 years 13,253.72 0.02 2,575,885.77 3.50
Over 3 years 554,245.10 0.81 562,650.12 0.76
Total 68,531,970.66 100.00 73,636,908.88 100.00
(2) Main companies in accounts paid in advance at period-end (top five companies)
Un-settlement
Unit Relationship Amount book age
reasons
In period of
Shanghai Hengsimai PU Co., Ltd. Suppliers 15,910,640.61 Within 1 year
credit account
In period of
Wanhua Chemical (Yantai) Sales Co., Ltd. Suppliers 6,815,186.67 Within 1 year
credit account
State Grid Anhui Electric Power Company In period of
Suppliers 6,127,237.16 Within 1 year
Hefei Company credit account
State Grid Anhui Feixi County Power In period of
Suppliers 4,698,150.86 Within 1 year
Supply Co., Ltd. credit account
Hefei Tongyong Environment Control In contract
Suppliers 3,190,000.00 Within 1 year
Technique Co., Ltd. terms
Total 36,741,215.30
(3) 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
Period-end Period-begin
Unit Bad debt Bad debt
Amount Amount
provision provision
148
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Sichuan Changhong Electric Co., Ltd. 1,336.00 - 1,486.00 -
(4) Account paid in advance for related party found in Note. VIII (III)
(5) Balance of foreign currency for account paid in advance
Period-end Period-begin
Foreign
Original Exchange Original Exchange
currency RMB converted RMB converted
currency rate currency rate
USD 720,369.10 6.1528 4,432,287.00 2,420,229.15 6.0969 14,755,895.12
EUO - - - 487,987.39 8.4189 4,108,317.04
JPY - - - -
Total 4,432,287.00 18,864,212.16
5. Other accounts receivable
(1) Category of other account receivable
Period-end
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Significant other account receivable and
- - - -
withdrawal bad debt provision single
Other account receivable withdrawal bad debt
provision by combination
Combination 1 10,933,671.64 37.77 2,710,430.08 24.79
Combination 2 17,818,353.55 61.54 0.00
Subtotal of combination 28,752,025.19 99.31 2,710,430.08 9.43
Other account receivable with single minor amount
199,989.26 0.69 199,989.26 100.00
but withdrawal bad debt provision singly
Total 28,952,014.45 100.00 2,910,419.34 10.05
Net value 26,041,595.11
(Continued)
Period-begin
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Significant other account receivable and
- - - -
withdrawal bad debt provision single
Other account receivable withdrawal bad debt
— — — —
provision by combination
Combination 1 11,451,452.92 48.75 3,174,935.19 27.73
Combination 2 11,839,101.99 50.40 - -
Subtotal of combination 23,290,554.91 99.14 3,174,935.19 13.63
149
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Period-begin
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Other account receivable with single minor amount
201,989.26 0.86 201,989.26 100.00
but withdrawal bad debt provision singly
Total 23,492,544.17 100.00 3,376,924.45 14.37
Net value 20,115,619.72
1) Significant other account receivable and no withdrawal bad debt provision single at period-end: Nil
2) Other account receivable with withdrawal bad debt provision for combination 1 by aging account
Period-end Period-begin
Book Age Book balance Bad debt Book balance Bad debt
Amount Ratio (%) provision Amount Ratio (%) provision
Within 1 year 3,366,813.65 30.79 168,340.68 2,162,967.80 18.89 108,148.39
1-2 years 4,504,669.03 41.20 675,700.35 4,457,462.50 38.92 668,619.37
2-3 years 931,895.00 8.52 326,163.25 3,223,545.66 28.15 1,128,240.98
3-4 years 1,192,817.00 10.91 656,049.35 370,000.00 3.23 203,500.00
4-5 years 355,336.75 3.25 302,036.24 1,140,336.75 9.96 969,286.24
Over 5 years 582,140.21 5.33 582,140.21 97,140.21 0.85 97,140.21
Total 10,933,671.64 100.00 2,710,430.08 11,451,452.92 100.00 3,174,935.19
3) Other account receivable with no withdrawal bad debt provision for combination 2
Combination Book balance
Employee’s reserve loans 11,137,561.69
Export tax rebate 6,680,791.86
Contact with related party -
Total 17,818,353.55
4) Other account receivable with single minor amount but withdrawal bad debt provision singly at period-end
Bad debt Withdrawal
Other account receivable Book balance Reasons
provision proportion
Unable to
Borrowing from resigned personnel 121,159.83 121,159.83 100%
collected
Matching station of Zhanghao Cooking Unable to
700.00 700.00 100%
Utensil of Yingjiang District, Anqing City collected
Unable to
6th division of 6th construction 6,520.00 6,520.00 100%
collected
Unable to
Predicted amount with long book age 71,609.43 71,609.43 100%
collected
Total 199,989.26 199,989.26
(2) Other account receivable received before 2011 which have been verified: Nil
(3) Reversal of reserve for bad debts: Nil
(4) Other receivables verified in this year:
150
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(5) Other 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
(6) Top five of other account receivable
Proportion in
Company Relationship Amount Book Age total other Nature or content
receivables
Non-related
Zhongshan Bureau of Finance 6,680,791.86 Within 1 year 23.08% Export tax refund
party
Wu Yujie Employee 1,632,800.00 Within 1 year 5.64% Reserve fund
Hefei Labor & Social Protection Non-related Margin of wages of
1,414,712.00 2-3 years 4.89%
Bureau party migrant workers
Non-related
Taobao client 1,365,000.00 Within 1 year 4.71% Margin
party
Li Xianping Employee 970,000.00 Within 1 year 3.35% Reserve fund
Total 12,063,303.86 41.67%
(7) Other account receivable from related parties, found in Note. VIII (III)
(8) Foreign currency balance for other receivable
Period-end Period-begin
Currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
Rupee 30,069,118.49 0.0623 1,874,460.74 11,121,019.00 0.0581 646,131.20
(9) Other receivable derecognition: Nil
6. Inventories
(1)Classification of inventories
Period-end
Item
Book balance Impairment provision Book value
Raw materials 75,774,032.07 1,115,185.01 74,658,847.06
Stock commodities 1,417,073,440.56 61,274,680.13 1,355,798,760.43
Low value consumable articles 8,400,513.53 - 8,400,513.53
Goods in transit 130,516,414.84 8,505,592.95 122,010,821.89
Goods-in-process 21,303,398.76 - 21,303,398.76
Deferred expense for moulds 50,200,787.98 - 50,200,787.98
Work in process-outsourced - - -
Total 1,703,268,587.74 70,895,458.09 1,632,373,129.65
(Cont.)
Period-begin
Item
Book balance Impairment provision Book value
Raw materials 71,923,621.81 501,704.56 71,421,917.25
151
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Period-begin
Item
Book balance Impairment provision Book value
Stock commodities 1,354,962,908.66 69,703,217.45 1,285,259,691.21
Low value consumable articles 12,946,861.34 - 12,946,861.34
Goods in transit 183,200,610.83 7,680,480.12 175,520,130.71
Goods-in-process 19,473,924.69 - 19,473,924.69
Deferred expense for moulds 29,242,787.74 - 29,242,787.74
Work in process-outsourced - - -
Total 1,671,750,715.07 77,885,402.13 1,593,865,312.94
(2) Inventory falling price reserves
Current Current decreased
Item Period-begin Period-end
increased Switch-back Other switch-out
Raw materials 501,704.56 613,480.45 1,115,185.01
Stock
69,703,217.45 127,766.33 8,556,303.65 61,274,680.13
commodities
Goods in transit 7,680,480.12 825,112.83 8,505,592.95
Goods-in-process - -
Work in
process-outsource - - -
d
Total 77,885,402.13 1,566,359.61 8,556,303.65 70,895,458.09
7. Long-term equity investment
(1) Classification of long-term equity investment
Item Period-end Period-begin
Long-term equity investment accounted in the cost method 6,500,000.00 6,500,000.00
Long-term equity investment accounted in the equity method 22,211,090.17 22,995,387.39
Total long-term equity investment 28,711,090.17 29,495,387.39
Less: Provision for impairment of long-term equity investment - -
Value of long-term equity investment 28,711,090.17 29,495,387.39
(2) Long-term equity investment accounted in the cost method and the equity method
Holdin Voting Current
g right Initial Period-beg Current Current cash
Invested Unit propo propo Period-end
rtion rtion amount in increased decreased dividen
(%) (%) d
Accounting in the cost
method
1.Huishang Bank Co.,
0.097 0.097 5,000,000.00 5,000,000.00 - - 5,000,000.00 -
Ltd.
152
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Holdin Voting Current
g right Initial Period-beg Current Current cash
Invested Unit propo propo Period-end
rtion rtion amount in increased decreased dividen
(%) (%) d
2.Guangxi Meiling
Household Electrics 20 20 1,000,000.00 1,000,000.00 - - 1,000,000.00 -
Co., Ltd
3.Fuyang Meiling
Appliance Marketing 10 10 500,000.00 500,000.00 - - 500,000.00 -
Co., Ltd.
Subtotal - - 6,500,000.00 6,500,000.00 - - 6,500,000.00 -
Accounting in the
equity method
1.Hefei Meiling Sole
Energy Technology Co., 31.114 31.114 3,111,400.00 1,338,217.25 1,084,195.80 254,021.45
Ltd.
2.ChanghongRubaElect
ricCompany(Private)Lt 40 40 10,119,816.00 9,125,362.23 395,019.28 9,520,381.51
d.
3.Hefei Xingmei Assets
48.28 48.28 12,094,369.48 12,531,807.91 95,120.70 12,436,687.21
Management Co., Ltd.
Subtotal 25,325,585.48 22,995,387.39 395,019.28 1,179,316.50 22,211,090.17
Total 31,825,585.48 29,495,387.39 395,019.28 1,179,316.50 28,711,090.17
(3) Investment in associated companies
Holdi
Voting
ng Closing Closing Current
right Closing Current net
Invested Unit propo total total net operating
proport total assets profit
rtion liabilities assets income
ion (%)
(%)
1.Hefei Meiling Sole Energy
31.114 31.114 66,161,229.33 65,632,448.46 528,780.87 8,813,824.44 -3,484,591.49
Technology Co., Ltd.
2.ChanghongRubaElectricCo
40 40 76,351,054.97 54,541,400.11 21,809,654.86 96,758,923.05 987,548.20
mpany(Private)Ltd.
3.Hefei Xingmei Assets
48.28 48.28 29,529,519.86 1,605,077.14 27,924,442.72 859,871.00 -197,018.85
Management Co., Ltd.
(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
Current
Item Period-begin Current increased Period-end
decreased
Original value 24,058,864.21 - - 24,058,864.21
Houses and buildings 23,142,172.83 - - 23,142,172.83
153
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Land use rights 916,691.38 - - 916,691.38
Accumulated depreciation and
8,357,486.48 404,291.07 - 8,761,777.55
accumulated amortization
Houses and buildings 8,017,794.11 385,106.79 - 8,402,900.90
Land use rights 339,692.37 19,184.28 - 358,876.65
Net book value 15,701,377.73 - - 15,297,086.66
Houses and buildings 15,124,378.72 - - 14,739,271.93
Land use rights 576,999.01 - - 557,814.73
Provision for impairment - - - -
Houses and buildings - - - -
Land use rights - - - -
Carrying value 15,701,377.73 - - 15,297,086.66
Houses and buildings 15,124,378.72 - - 14,739,271.93
Land use rights 576,999.01 - - 557,814.73
(2) Investment real estate measured by fair value: Nil
(3) Particular about mortgage of investment property: Nil
9. Fixed assets
(1) Classification of fixed assets by item
Current
Item Period-begin Current increased Period-end
decreased
Original value 1,895,207,210.10 87,077,165.05 80,130,414.47 1,902,153,960.68
Houses and
763,122,277.25 1,964,952.26 - 765,087,229.51
buildings
Mechanical
1,007,168,913.55 74,359,910.44 73,653,509.31 1,007,875,314.68
equipment
Transport
23,517,116.62 1,453,534.08 3,910,206.24 21,060,444.46
equipment
Others 101,398,902.68 9,298,768.27 2,566,698.92 108,130,972.03
Accumulated
744,756,197.84 Newly added Withdrawalt 74,097,054.36 733,282,982.50
depreciation
Houses and
98,878,160.08 12,023,152.46 - 110,901,312.54
buildings
Mechanical
584,585,167.09 43,573,011.51 69,861,289.39 558,296,889.21
equipment
Transport
15,038,417.18 1,083,803.85 2,087,535.50 14,034,685.53
equipment
Others 46,254,453.49 5,943,871.20 2,148,229.47 50,050,095.22
Provision for
11,700,380.89 2,004,615.31 9,695,765.58
impairment
Houses and
1,240,639.77 - 1,240,639.77
buildings
154
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Current
Item Period-begin Current increased Period-end
decreased
Mechanical
8,603,887.45 1,934,195.39 6,669,692.06
equipment
Transport
306,688.19 - 306,688.19
equipment
Others 1,549,165.48 70,419.92 1,478,745.56
Carrying value 1,138,750,631.37 1,159,175,212.60
Houses and
663,003,477.40 652,945,277.20
buildings
Mechanical
413,979,859.01 442,908,733.41
equipment
Transport
8,172,011.25 6,719,070.74
equipment
Others 53,595,283.71 56,602,131.25
Fixed assets decreased in the Period mainly because: as for the aged equipment and idle assets, the
Company re-plan, transform and combine time in order to improve the assets’ utilization efficiency. Original
value of assets involved in transform was 77,218,607.93 Yuan; the transform after equipment introduced,
equipments are completed and put into operate in March 2014.
(2) Fixed assts temporary idle: Nil
(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 1,130,669.64 - 176,770.96
equipment
(5) Fixed assets used for mortgage
Name Property certificate serials Original value Net value Bank for mortgage
Nantou Town Sub-branch of
1#dormitory YFDZZ No.C1652755
ICBC of Zhongshan City
Nantou Town Sub-branch of
2#dormitory YFDZZ No.C1652821 4,910,007.80 1,783,291.64
ICBC of Zhongshan City
Nantou Town Sub-branch of
3#dormitory YFDZZ No.C1652754
ICBC of Zhongshan City
Nantou Town Sub-branch of
4#dormitory YFDZZ No.C1628038 1,519,062.18 551,716.16
ICBC of Zhongshan City
Nantou Town Sub-branch of
Canteen YFDZZ No.C1652823 1,178,632.00 430,547.27
ICBC of Zhongshan City
Total 7,607,701.98 2,765,555.07
(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
155
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
3#Big refrigerator Plant 62,486,681.45
3#Big refrigerator finished-goods Plant 47,567,088.26
Canteen 2,415,806.73
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 240,858,294.18
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 year-end: Nil
10. Construction in progress
(1) Details of construction in progress
Period-end Period-begin
Impai Impai
Item rment Carrying rment
Book balance Book balance Carrying value
provis value provis
ion ion
Manufacture base project of
the Athena luxury 15,374,751.87 - 15,374,751.87 7,811,391.54 - 7,811,391.54
refrigerator
Construction of the project
of ice cube capacity 4,900,892.89 - 4,900,892.89 8,050,156.67 - 8,050,156.67
expansion
Phase II of Changhong
Meiling industry park 9,371,418.64 - 9,371,418.64 11,302,274.61 - 11,302,274.61
capacity expansion
Construction project of
Phase II for matching life
9,943,170.69 - 9,943,170.69 5,037,289.54 - 5,037,289.54
district of Meiling Hi-Tech
Industrial Park
Other minor projects 16,008,525.46 - 16,008,525.46 12,429,770.17 - 12,429,770.17
Capacity expansion of
energy-saving and
environmental refrigerator 1,070,725.29 - 1,070,725.29 173,539.20 - 173,539.20
with annual output of 2
millions sets
Relocation project of
- - - 302,564.12 - 302,564.12
Zhongke Meiling
Equipments pending for
2,972,942.40 - 2,972,942.40 6,285,825.57 - 6,285,825.57
installation
156
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Period-end Period-begin
Impai Impai
Item rment Carrying rment
Book balance Book balance Carrying value
provis value provis
ion ion
Shift work dormitory
building of Non-ferrous 565,996.25 - 565,996.25 15,472.75 - 15,472.75
Metal Company
Technical innovation
project of Zhongshan 1,396,273.05 - 1,396,273.05 1,106,357.93 - 1,106,357.93
Changhong
Capacity expansion project
of energy-saving and 6,243,281.00 - 6,243,281.00 - - -
environmental refrigerator
Total 67,847,977.54 67,847,977.54 52,514,642.10 52,514,642.10
(2) Changes in significant construction in progress
Current decreased
Current
Item Period-begin Transfer to Other Period-end
increased
fixed assets decrease
Manufacture base project of
the Athena luxury 7,811,391.54 11,748,329.64 4,184,969.31 15,374,751.87
refrigerator)
Construction of the project
of ice cube capacity 8,050,156.67 3,149,263.78 4,900,892.89
expansion)
(Continued)
including: Interest
Proportion of Accumulated
interest capitalizati
project Progr amount of Capital
Item Budget capitalized on rate of
investment in ess interest source
amount of the the year
budget (%) capitalization
period (%)
Manufacture base
793millio Mainly
project of the Athena 65.23% 96% - - -
n Yuan raised
luxury refrigerator
Construction of the
375millio Mainly
project of ice cube 79.94% 99% - - -
n Yuan raised
capacity expansion
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, part of the equipments at period-end still in installation and no acceptance completed.
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
157
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
production in January 2011, 1st stage of phase II was completed and put into production in March 2012, and
the 2nd stage of phase II had exercised trial production in May 2013, part of the equipments at period-end still
in installation and no acceptance completed.
(3) Depreciation reserves for construction in process: Nil
11. Disposal of fixed assets
Reasons for
Item Period-end Period-begin disposal
transferred
Relevant assets disposal for reserved Relocation for land
76,137,234.11 76,129,471.41-
lands reserve
Pursuant to the urban planning requirements of the People’s Government of Hefei city, Hefei Land
Reserve Center plans to purchase and store the land use right of an integrated economic development zone of
the Company located at Longgang of Hefei with an area of 103,978.9 sq.m. (Approximately 155.9684 mu,
Land Use Right Certificate No.: Dong Guo Yong (2004) Zi No. 0200, the stated use of the land is for
industrial purpose). The estimated consideration for purchasing and storage is RMB74.48 million. The land is
mainly used for the Company’s warehouse, product finishing workshop and the factory of Zhongke Meiling.
Pursuant to the purchasing and storage requirements of land use right, the land will be purchased and stored
with vacant possession. In April 2013, the Company completed the relocation of occupants of the premises,
and the net fixed assets in relation to the land will transfer as disposal, accounting treatment will be conduct
in line with relevant rules upon receiving of the relocation compensation.
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of
Feidong county, the land reserve center of Feidong county will purchase and store the land use right of an
economic development zone located at Feidong county, Hefei city, which is owned by the Company’s
subordinate companies, Equator Electric and Equator Home Appliance, respectively, with an area of
19,245.09 sq.m. (Approximately 28.87 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No.
0366, the stated use of the land is for industrial purpose) and an area of 46,161.9 sq.m. (Approximately 69.24
mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367, the stated use of the land is for
industrial purpose). The total consideration for purchasing and storage is approximately RMB36 million, of
which the consideration for the land use right owned by Equator Electric and Equator Home Appliance is
approximately RMB10.59 million and RMB25.41 million, respectively. The Company has completed the
relocation of occupants of the premises, and the net fixed assets in relation to the land will transfer as
disposal, accounting treatment will be conduct in line with relevant rules upon receiving of the relocation
compensation.
12. Intangible assets
Item Period-begin Current increased Current decreased Period-end
Original price 964,100,587.83 - 964,100,587.83
Land use rights 593,245,146.16 593,245,146.16
Trademark
283,292,439.34 283,292,439.34
exclusive right
158
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Period-begin Current increased Current decreased Period-end
Patent technology - -
Non-patent
87,563,002.33 87,563,002.33
technology
Accumulated
371,046,417.25 15,594,981.89 386,641,399.14
amortization
Land use rights 78,186,917.02 6,188,232.21 84,375,149.23
Trademark
258,281,960.64 2,455,785.00 260,737,745.64
exclusive right
Patent technology - - -
Non-patent
34,577,539.59 6,950,964.68 41,528,504.27
technology
Provision for
- -
impairment
Land use rights - -
Trademark
- -
exclusive right
Patent technology - -
Non-patent
- -
technology
Carrying value 593,054,170.58 577,459,188.69
Land use rights 515,058,229.14 508,869,996.93
Trademark
25,010,478.70 22,554,693.70
exclusive right
Patent technology - -
Non-patent
52,985,462.74 46,034,498.06
technology
As of the end of June 2014, mortgage of intangible assets is as follows:
Name Property certificate serials Area(M2) Net book value Note
Lands HJKGY(2007)No.:061 477,550.00 285,538,734.58 Export-Import Bank
Finance Bureau of Hefei
Lands HGYJCZi No.: 0121 27,120.22 21,664,929.67
City
Nantou Branch of
Lands ZFGY(2003) 020644 14,451.10 1,201,956.00
Zhongshan ICBC
Total 519,121.32 308,405,620.25
13. Development expense
Current decreased
Current Record into
Item Period-begin Confirm as Period-end
increased current gains
intangible assets
and losses
159
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Technology
development for 9,516,070.34 17,759,863.81 10,976,881.38 16,299,052.77
Air-conditioner
Development expenses at Period-end has 71.28% growth over that of period-begin, mainly because more
invested for R&D in the Period
14. Goodwill
Current Current Depreciation
Invested Unit Period-begin Period-end
increased decreased reserves
Hefei Meiling Group Holding Co.,
10,922,803.73 - - 10,922,803.73 10,922,803.73
Ltd.
Goodwill generated from merger of Hefei 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
Assets group C 1,839,593.87 1,839,593.87 -
Environment-friendly
Assets group D Trademark exclusive right 5,529,842.09 5,529,842.09 -
Total 10,922,803.73 10,922,803.73 -
In line with the operation data and future business planning based on vary assets group, impairment provision
of goodwill has completed withdrawal
15. Deferred income tax assets and deferred income tax liabilities
(1)Recognized deferred income tax assets and deferred income tax liabilities
Item Period-end Period-begin
Deferred income tax assets
Deferred income tax assets recognized from property
17,358,926.80 11,141,283.74
depreciation preparation
Deferred income tax assets recognized from accrual liability 52,941,712.23 53,497,341.41
Deferred income tax assets recognized from Dismission
7,351,042.63 7,539,802.79
welfare
Deferred income tax assets recognized from deferred income 1,584,540.90 1,664,800.69
Deferred income tax assets recognized from deductable losses - -
Deferred income tax assets recognized from accrual expenses 2,743,670.93 2,052,205.95
Total 81,979,893.49 75,895,434.58
Deferred income tax liabilities
Total - -
160
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(2)Unrecognized deferred income tax assets
Item Period-end Period-begin
Deductible temporary difference 42,224,095.83 70,734,792.06
Deductible loss 161,547,975.26 138,937,599.29
Total 203,772,071.09 209,672,391.35
It is uncertainty for gaining sufficient taxable amount in future for part of subsidiaries, not confirming
deferred income tax assets.
(3) Details of taxable difference and deductible difference
Item Amount
Deductible difference
Account receivable Bad debt provision 37,444,314.73
Bad debt provision of other receivable 2,633,118.95
Depreciation reserve for inventory 70,223,452.66
Impairment provision for fixed assets 4,079,316.72
Projected liability 352,944,748.17
Dismiss welfare 49,006,950.86
Deferred income 10,563,606.03
Expenses withdrawal in advance 10,974,683.70
Subtotal 537,870,191.82
Taxable differences -
Subtotal -
16. Impairment provision for assets
Current decreased
Current
Item Period-begin Other Period-end
increased Switch-back
switch-out
Bad debt provision 49,350,076.09 30,045,426.65 741,623.00 78,653,879.74
Inventory falling price
77,885,402.13 1,566,359.61 - 8,556,303.65 70,895,458.09
reserves
Depreciation reserve for
11,700,380.89 - - 2,004,615.31 9,695,765.58
fixed asset
Depreciation reserve for
- - - -
intangible asset
Depreciation reserve for
10,922,803.73 - - 10,922,803.73
goodwill
Total 149,858,662.84 31,611,786.26 741,623.00 10,560,918.96 170,167,907.14
17. Short-term loans
Type of loans Period-end Period-begin
Loan in pledge 85,231,464.61 41,092,190.86
Loan in credit 773,363,194.51 25,340,889.00
161
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Type of loans Period-end Period-begin
Total 858,594,659.12 66,433,079.86
Loans in the Period as:
(1) The Company entered into invoice financing borrowing agreement with the followed -- Bank of
China: period from 11 April 2014 to 28 July 2014 with EUR 1.13 million; period from 11 April 2014 to 15
September 2014 with EUR 3.63 million; Construction Bank of China: period from 25 April 2014 to 23 July
2014 with EUR 5 million; period from 12 May 2014 to 8 August 2014 with EUR 0.7 million; period from 14
May 2014 to 11 August 2014 with EUR 3 million; Agriculture Bank of China: period from 26 May 2014 to
26 August 2014 with EUR 5,000,089.09; Bank of China: period from 27 May 2014 to 21 November 2014
with EUR 5 million; Construction Bank of China: period from 30 May 2014 to 28 August 2014 with EUR 3
million; China Everbright Bank: period from 17 June 2014 to 15 September 2014 with EUR 3 million; Bank
of Communications: period from 21 January 2014 to 21 July 2014 with US$ 48,864,236.67; Agriculture
Bank of China: period from 26 March 2014 to 8 July 2014 with US$ 9,944,646.87; Bank of China: period
from 20 February 2014 to 20 August 2014 with US$ 26.69 million; amounting as 773,363,194.51 Yuan in
total.
(2)The subsidiary Zhongshan Changhong entered into account receivables pledge loans agreement with
Zhongshan Nantou Branch of the Industrial and Commercial Bank of China, with borrowing term being 3
months from 30 April 2014 to 29 July 2014, amount of US$ 3 million (RMB 18,458,400.00 in total).
(3)The subsidiary Zhongshan Changhong entered into account receivables pledge loans agreement with
Zhongshan Nantou Branch of the Industrial and Commercial Bank of China, with borrowing term being 153
days from 9 May 2014 to 16 October 2014, amount of US$ 3,135,921.98 (RMB 19,294,700.76 in total).
(4)The subsidiary Zhongshan Changhong entered into account receivables pledge loans agreement with
Zhongshan Nantou Branch of the Industrial and Commercial Bank of China, with borrowing term being 3
months from 25 June 2014 to 25 September 2014, amount of US$ 3 million (RMB 18,458,400.00 in total).
(5)The subsidiary Zhongshan Changhong entered into account receivables pledge loans agreement with
Zhongshan Nantou Branch of the Industrial and Commercial Bank of China, with borrowing term being 164
days from 4 June 2014 to 13 November 2014, amount of US$ 2,976,696.04 (RMB 18,315,015.39in total).
(6) The subsidiary Zhongshan Changhong entered into account receivables pledge loans agreement with
Zhongshan Nanpu Branch of the Bank of Communications, with borrowing term being 12 months from 13
November 2013 to 13 November 2014, amount of US$ 1,739,849.90 (RMB 10,704,948.46 in total).
18. Notes payable
Type Period-end Period-begin
Bank acceptance bill 1,402,357,732.65 1,415,811,668.96
Commercial acceptance bill 16,600,000.00 104,277,046.22
Total 1,418,957,732.65 1,520,088,715.18
162
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
19. Account payable
(1) Account payable
Item Period-end Period-begin
Total 2,169,302,958.92 1,692,121,242.19
Including: over 1 year 25,842,502.40 21,167,501.13
Account payable with over one year book age refers to the quality assurance fund and final payment
payable for projects equipment
(2)Accounts payable to shareholders holding 5% or above voting shares of the Company
Unit Period-end Period-begin
Sichuan Changhong Electric Co., Ltd. 34,501,683.53 36,646,331.81
(3)Account payable denominated in foreign currency
Period-end Period-begin
currency Original RMB Original Exchange RMB
Exchange rate
currency converted currency rate converted
USD 26,392.77 6.1528 162,389.43 225,610.01 6.0969 1,375,521.67
EUR - - - -
Rupee 895,466,318.00 0.0623 55,821,937.52 608,252,200.94 0.0581 35,298,103.83
Total 55,984,326.95 36,709,176.83
(4) Account payable for related parties found in Note VIII (III)
20. Account received in advance
(1) Account received in advance
Item Period-end Period-begin
Total 350,099,797.07 363,233,745.71
Including: over 1 year 28,226,533.99 44,357,910.56
(2)Accounts received in advance from shareholders holding 5% or above voting shares of the Company:
Unit Period-end Period-begin
Sichuan Changhong Electric Co., Ltd. 27,303,728.84 -
(3)Account received in advance denominated in foreign currency
Period-end Period-begin
currency Original RMB Original Exchange
Exchange rate RMB converted
currency converted currency rate
EUR 1,273.61 8.4189 10,722.40
USD 5,851,378.82 6.1528 36,002,363.60 2,799,673.09 6.0969 17,069,326.86
Rupee 28,660,186.00 0.0623 1,786,630.14 - -
Total 37,788,993.74 17,080,049.26
163
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(4) Account receivable from related parties found in Note VIII (III)
21. Wages payable
Current Current
Item Period-begin Period-end
increased decreased
Salary, bonus, laboring 93,634,954.42 337,607,779.50 378,402,210.85 52,840,523.07
Welfare for workers and staff - 16,784,549.62 16,409,026.12 375,523.50
Social insurance charge 19,747,726.53 46,856,179.72 60,907,819.31 5,696,086.94
Including: Medical insurance 2,685,520.31 11,879,424.57 12,431,525.57 2,133,419.31
Basic endowment insurance 15,806,600.66 30,087,212.24 43,302,335.43 2,591,477.47
.Unemployment insurance 925,776.79 2,962,806.47 3,182,492.60 706,090.66
Work injury insurance 164,063.64 1,116,972.00 1,154,984.30 126,051.34
Maternity insurance 165,765.13 809,764.44 836,481.41 139,048.16
Housing accumulation fund 3,342,957.50 18,880,091.91 21,402,830.79 820,218.62
Labor union expenditure and
1,151,300.82 815,934.66 961,997.28 1,005,238.20
personnel education expense
Non-monetary welfare - - - -
Dismiss welfare* 50,340,368.00 2,670,362.78 4,003,779.92 49,006,950.86
Other - -
Including: shares payment settled
- - - -
with cash
Total 168,217,307.27 423,614,898.19 482,087,664.27 109,744,541.19
According to the internal early retirement policy, as at the period end, the discharge welfare balance is
projected to be RMB 49,006,950.86. The compensation provided for release of labor relation amounted to
RMB 702,291.98 this period.
The Company withdrew the outstanding salary, bonus and subsidy from the opening balance of staff
salary payables which were granted in January and February 2014.
22. Tax payable
Item Period-end Period-begin
Value-added tax 85,215,868.27 -35,747,545.58
Business tax 256,261.88 277,597.82
Enterprise income tax 13,233,618.59 2,362,871.31
Individual income tax 1,398,892.84 1,430,048.73
Urban maintenance and construction tax 4,382,597.74 3,564,625.15
House property tax 4,629,831.17 6,339,993.88
Land-use right tax 2,074,468.14 2,275,452.26
Educational surtax 3,174,225.32 2,503,014.12
Stamp tax 837,761.53 2,137,812.64
Construction fund of Water Conservancy Projects 457,794.15 581,528.53
Treatment fund for abandon electric & electronics products 17,276,107.00 8,465,782.00
164
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Period-end Period-begin
Other 1,322,942.22 888,772.81
Total 134,260,368.85 -4,920,046.33
Tax payable at period-end shows greatly growth over that of period-begin, mainly because sales
increased in the Period and VAT retained at beginning of the Period.
23. Dividends payable
Reasons of unpaid over
Unit Period-end Period-begin
one year
Entrust Hefei Office of No extract required by
279,729.45 279,729.45
Provincial ABC counterparty
No extract required by
City Insurance company 155,405.25 155,405.25
counterparty
Bank of Communications, No extract required by
153,697.50 153,697.50
Hefei Branch counterparty
No extract required by
Huishang Bank Co., Ltd. 103,333.85 103,333.85
counterparty
No extract required by
Hefei Technology Bank 92,088.75 92,088.75
counterparty
No extract required by
Other piecemeal units 983,724.43 997,832.96
counterparty
Total 1,767,979.23 1,782,087.76
24. Other payable
(1) Other payable
Item Period-end Period-begin
Total 1,237,932,500.14 914,983,315.18
Including: over 1 year 32,553,461.04 40,039,887.72
In amount at period-end, 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 Period-begin
Sichuan Changhong Electric Co., Ltd. 1,745,405.22 18,021,861.45
(3)Other account received denominated in foreign currency
Period-end Period-begin
currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
Rupee 162,198,674.64 0.0623 10,111,205.86 - -
(4) Other payable to related party found more in Note VIII (III)
25. Non-current liability due within one year
165
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Period-end Period-begin
Long-term loans due within one year 50,000,000.00 110,000,000.00
Deferred income transfer to gains and losses within one year 11,123,985.90 9,256,114.30
Total 61,123,985.90 119,256,114.30
Long-term loans due within one year refer to the mortgage loans. On 24 July 2012, the Company
entered into a ―real estate mortgage contract‖ with The Export-Import Bank of China for 2-year term and
RMB 120 million loans with the lands of 477,550 M2 in total as pledged. RMB 60 million was return in the
Period, and rests of the RMB 50 million paid in July 2014.
26. Long-term loans
(1)Classification of long-term loans
Type Period-end Period-begin
Loan in pledge - -
Loan in mortgage 4,480,000.00 5,120,000.00
Loan in assurance - -
Loan in credit 4,403,700.00 4,403,700.00
Total 8,883,700.00 9,523,700.00
(2) Details of long-term loans at period –end
Borrowing Returning Interes
Loan unit Currency Period-end Period-begin
day day t rate
Finance Bureau of Hefei
注1
2006-11-9 2021-11-8 RMB 3.30% 4,480,000.00 5,120,000.00
City
Finance Bureau of Hefei
注2 2002-11-21 2017-11-20 RMB 3.30% 2,603,700.00 2,603,700.00
City
Finance Bureau of Hefei
注3 2004-12-10 2019-12-10 RMB 3.30% 1,800,000.00 1,800,000.00
City
Total 8,883,700.00 9,523,700.00
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 as mortgage for
the Company to get the lending of treasury bond fund which has 15-year term and worthy of RMB 7,040,000
from the Ministry of Finance of Hefei. The capital on-lending began to bear interest from the appropriate
date (November 9, 2006), which would be paid by stages in the loan period to Ministry of Finance of Hefei
by the Company. The first four years were grace period, during which the annual interest rate was subject to
floating interest rate (the annual interest rate was the annual interest rate of one year fixed deposit plus 0.3%).
In March 2013, the Longgang land parcel where the above pledged asset is located was admitted in storage
according to the land planning of Hefei Municipal Government; therefore the original real estate pledge has
been replaced with the real estate of [He Guo Yong Ji Chu Zi No. 0121]. During the year, the principal of
RMB 640, 000.00 and an interest of RMB 169,000 have been paid for such long-term borrowing.
166
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
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%).
Note3: It was the special Treasury bond capital appropriated by Ministry of Finance of Hefei for
enterprises’ information reform, received on 10 December 2004.
27. Projected liability
Carry-forward
Item Period-begin Current increased Period-end
during the period
Product quality guarantee 12,413,883.47 - - 12,413,883.47
Guarantee fund for quality
344,235,059.27 3,704,194.57 340,530,864.70
service
Total 356,648,942.74 3,704,194.57 352,944,748.17
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.
28. Other non-current liabilities
Item Period-end Period-begin
Deferred income 100,026,571.66 107,073,628.76
(1) Government subsidy
Amount
Concerned
New subsidy in reckoned into Other
Item Period-begin Period-end with
the Period non-operating changes
assets/earnings
income
Subsidy for
promotion project
Assets
of conditioner for 124,530.00 124,530.00 -
concerned
energy-saving
rooms
Adaptability
improvement Assets
4,174,141.27 410,535.24 167,871.60 3,595,734.43
project for concerned
production of FTXS
VISA research and Assets
5,100,000.00 - - 5,100,000.00
application projects concerned
Energy-saving Assets
1,700,000.00 - 1,700,000.00
intelligent AC concerned
167
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Amount
Concerned
New subsidy in reckoned into Other
Item Period-begin Period-end with
the Period non-operating changes
assets/earnings
income
industrialization
project
Demolition
Assets
compensation of 52,311,124.43 - - 1,235,023.84 51,076,100.59
concerned
Hefei Meiling
Special fund of
Assets
technical reform for 26,309,062.50 2,143,125.00 24,165,937.50
concerned
Athena Project
Freezer project of Assets
4,404,374.98 367,031.26 4,037,343.72
Hefei Meiling concerned
Demolition
Assets
compensation of 12,950,395.58 - - 898,940.16 12,051,455.42
concerned
Jiangxi Meiling
Total 107,073,628.76 535,065.24 6,511,991.86 100,026,571.66
29. Share capital
Period-begin Change during theyear Period-end
Shar
es
Ne
trans
w
ferre
Shareholders / type Ratio sha Ratio
Bonus d
Amount res Other Subtotal Amount
% share from %
iss
capit
ue
al
d
reser
ve
Shares with conditional
67,523,544.00 8.84 -2,197,542 -2,197,542 65,326,002 8.55
subscription
State-owned shares - -
State-owned legal person
shares
56,571,812.00 7.41 56,571,812.00 7.41
-2,197,542.0
Other domestic shares 10,620,913.00 1.39 -2,197,542.00 8,423,371.00 1.10
0
Including: Domestic legal -1,458,835.0
person shares
8,634,071.00 1.13 -1,458,835.00 7,175,236.00 0.94
0
Domestic natural
1,986,842.00 0.26 -738,707.00 -738,707.00 1,248,135.00 0.16
person shares
Foreign shares 330,819.00 0.04 330,819.00 0.04
Including: Foreign legal
person shares
- - -
Foreign natural
person shares
330,819.00 0.04 330,819.00 0.04
Shares with no restricted
696,215,661.00 91.16 2,197,542 2,197,542 698,413,203 91.45
condition
RMB common shares 533,682,480.00 69.88 2,197,542.00 2,197,542.00 535,880,022.00 70.17
168
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Period-begin Change during theyear Period-end
Shar
es
Ne
trans
w
ferre
Shareholders / type Ratio sha Ratio
Bonus d
Amount res Other Subtotal Amount
% share from %
iss
capit
ue
al
d
reser
ve
Domestically listed
foreign shares
162,533,181.00 21.28 162,533,181.00 21.28
Overseas listed foreign
shares
- - -
Other - - -
Total shares 763,739,205 100.00 763,739,205 100.00
Note: data of the ratios have rounded up to two digits after the decimal point.
30. Capital reserve
Item Period-begin Current increased Current decreased Period-end
Share premium 1,430,823,897.08 - 67,958.33 1,430,755,938.75
Other capital reserve 48,080,558.82 - - 48,080,558.82
Total 1,478,904,455.90 - 67,958.33 1,478,836,497.57
Decrease of current capital reserve mainly due to the difference in price while part of the minority
equity of marketing company purchased by the Company
31. Surplus reserves
Item Period-begin Current increased Current decreased Period-end
Statutory surplus reserve 222,295,033.59 - - 222,295,033.59
Discretionary surplus
115,607,702.16 - - 115,607,702.16
reserve
Total 337,902,735.75 - 337,902,735.75
32. Retained profit
Withdraw or
Item Amount
distribution ratio
Amount at the end of last year 608,723,517.81
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 608,723,517.81
Add: net profit attributable to shareholders of parent company for this
159,106,275.83
year
169
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Withdraw or
Item Amount
distribution ratio
Deficit coverage of surplus reserve -
Less: withdraw of statutory surplus reserve - 10%
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 end of this period 767,829,793.64
33. Minority shareholder’s equity
Minority shareholding ratio
Subsidiaries Period-end Period-begin
at period-end
Zhongke Meiling Cryogenic
30% 26,381,805.67 25,308,341.21
Technology Co., Ltd.
Hefei Meiling Appliance Marketing Found in Note V (I)
-12,215,960.88 -8,812,226.97
Co., Ltd ―Subsidiaries‖
Zhongshan Changhong Electric Found in Note V (I)
5,561,954.07 3,903,377.58
Co., LTD ―Subsidiaries‖
Total 19,727,798.86 20,399,491.82
34. Operating income and operating cost
(1) Operating income and operating cost
Item Current Period Last Period
Main business income 6,065,191,520.33 5,702,567,111.50
Other business income 279,197,531.84 248,877,463.82
Total 6,344,389,052.17 5,951,444,575.32
Main business cost 4,519,065,778.97 4,296,706,938.50
Other business cost 261,429,942.59 229,647,164.73
Total 4,780,495,721.56 4,526,354,103.23
(2) Main business classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
3,549,885,533.16 2,643,939,925.00 3,698,006,881.56 2,769,769,582.32
freezer
Air-condition 2,342,096,863.45 1,740,943,218.35 1,864,585,839.05 1,416,148,573.24
Washing machine 87,465,352.71 69,854,910.33 69,580,523.51 59,340,139.19
Other 85,743,771.01 64,327,725.29 70,393,867.38 51,448,643.75
Total 6,065,191,520.33 4,519,065,778.97 5,702,567,111.50 4,296,706,938.50
(3) Main business classified according to sales region
170
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 5,079,538,600.53 3,625,288,052.20 4,868,852,134.59 3,521,005,994.95
Overseas 985,652,919.80 893,777,726.77 833,714,976.91 775,700,943.55
Total 6,065,191,520.33 4,519,065,778.97 5,702,567,111.50 4,296,706,938.50
(4) Top five clients have income in sales of RMB 2,039,411,284.36 in total, a 32.15% in total operation
income.
35. Business tax and extra charges
Item Current Period Last Period
Business tax 547,099.61 477,497.84
City construction tax 9,944,209.23 15,644,928.65
Extra charge for education 7,301,221.17 11,330,468.22
Treatment fund for abandon electrics & electronics 27,508,903.96 30,888,833.00
Other 349,566.30 201,607.13
Total 45,651,000.27 58,543,334.84
36. Sales expense
Item Current Period Last Period
Market support 414,879,458.96 436,564,359.07
Transport expenses 213,228,988.60 191,868,113.44
Salary , extra charges and laboring charge 138,375,811.88 112,209,267.28
Air conditioner installation fee 131,817,263.42 108,349,023.43
National three guarantees expense 89,619,222.69 54,245,396.05
Advertisement expenses 50,050,073.13 29,400,948.05
Storage lease expenses 43,239,838.74 43,769,365.52
Travelling expenses 15,234,243.46 14,063,332.39
Exhibition expenses 9,873,469.28 15,844,172.74
Operation activities expenses 8,574,484.29 8,753,131.66
Meeting organization 6,261,675.06 7,427,498.05
House-lease expenses 4,240,792.59 2,610,063.78
Vehicle consumption 3,429,131.72 3,266,491.31
Communication expenses 2,929,119.71 2,763,161.84
Depreciation expenses 2,543,698.03 1,687,634.44
Accrued expenses of product quality guarantee -3,704,194.57 685,902.00
Other expenses 25,879,143.53 15,698,821.46
Total 1,156,472,220.52 1,049,206,682.51
Accrued expenses for the product quality guarantee mainly due to the expenses withdrawal for 10-year
guarantee to those products going to the countryside. In January 2013, stop accrual for the end of the policy
171
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
of home appliance going rural and successively written-off the expenses that accrual for products out of the
guarantee period; the three guarantees expense verified actually in the Period for pervious year have
3,704,194.57 Yuan accrual
37. Administration expense
Item Current Period Last Period
Salary and others 61,608,639.23 61,832,994.85
Tax 24,187,321.13 12,376,103.28
Trial fee of R&D 20,673,670.36 8,806,308.66
Amortized intangible assets 15,653,734.94 13,287,151.98
Social insurance and housing fund 12,046,476.60 14,288,436.62
Depreciation 6,126,568.01 10,339,403.84
Utilities 5,101,095.44 4,546,969.58
Domestic travelling fee 4,523,944.80 4,648,335.81
Business activities 2,719,419.37 4,269,693.32
Office charge 2,717,199.48 2,677,841.70
Inspection and authentication fee 2,459,079.53 1,885,262.87
Property insurance 836,322.18 822,430.56
Others 35,893,984.10 30,173,228.47
Total 194,547,455.17 169,954,161.54
38. Financial expense
Item Current Period Last Period
Interest expenditure 4,772,758.61 9,649,962.36
Less: Interest income 38,510,107.81 22,460,895.75
Add: exchange loss 4,773,881.90 -3,234,754.22
Add: procedure charge expenditure 14,605,612.13 3,142,405.62
Add: discount expenditure -27,034,165.54 -21,313,542.04
Add: other expenditure -2,448,278.19 -2,024,101.86
Total -43,840,298.90 -36,240,925.89
39. Loss from Assets depreciation
Item Current Period Last Period
Bad debt losses 28,505,564.37 19,325,189.83
Provision for falling price of inventory 1,566,359.61 2,687,241.84
Total 30,071,923.98 22,012,431.67
40. Investment income
(1) Sources of investment income
Item Current Period Last Period
Long-term equity investment income by cost method - 1,153,869.48
172
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Long-term equity investment income by equity method -784,297.22 -593,240.24
Investment income from disposal of long-term equity investment - 190,660.44
Total -784,297.22 751,289.68
(2) Long-term equity investment income by cost method
Item Current Period Last Period
Huishang Bank Co., Ltd. - 1,073,757.30
Guangyuan Meiling Appliance Marketing Co., Ltd. - 80,112.18
Total - 1,153,869.48
(3) Long-term equity investment income by equity method
Item Current Period Last Period
Hefei Meiling Sole Energy Technology Co., Ltd. -1,084,195.80 -964,644.78
Hefei Xingmei Assets Management Co., Ltd. -95,120.70 211,404.54
ChanghongRUBAElectricCompany(Private)LTD 395,019.28 160,000.00
Total -784,297.22 -593,240.24
(4)Investment income from disposal of long-term equity investment
Item Current Period Last Period
Haozhou Meiling Appliance Marketing Co., Ltd. - 14,871.71-
Changzhou Meiling Appliance Marketing Co., Ltd. - 175,788.73-
Total - 190,660.44
41. Non-operation revenue
(1)Details about non-operation revenue
Amount reckoned into
Item Current Period Last Period non-recurring gains/losses in the
Period
Gains from disposal of
1,469,461.36 137,952.34 1,469,461.36
non-current assets
Incl.: gains from disposal of
1,469,461.36 137,952.34 1,469,461.36
fixed assets
Government subsidy 9,753,687.37 8,284,145.67 9,753,687.37
Income of penalty 547,560.89 426,985.10 547,560.89
Other 8,627,197.54 168,055.56 8,627,197.54
Total 20,397,907.16 9,017,138.67 20,397,907.16
Non-operation revenue growth 126.21% on y-o-y basis, mainly due to the contingent liabilities
compensation 8,021,786.31 Yuan received by parent company paid from Xingtai Holding in Period.
(2)Details about government subsidy
Item Current Period Last Period Origin and basis
173
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Air conditioning energy Finance subsidy for promotion of energy-saving
saving people-benefit 265,200.00 product people-benefit project high-efficiency
subsidy room air conditioning
Notice on Implementation of Industry Reform
Awards for innovation Policy to Further Promote Independent
1,207,700.00
enterprise Innovation (Trial) of Hefei (HZ[2012]No.53 and
HZ [2012] No. 52
the administrative committee of economic
Tax returns 483,175.83 development zone tax rewards HJQJ[2013] No.
14
Deferred income
5,179,185.50 4,308,606.67
transfer-in
Technology platform
R&D for intelligent AC 900,000.00 MCJ【2013】No. 29
and application subsidy
Subsidy from Office of Science & Technology,
Quota funding for patent
36,800.00 quota funds for patent application 10061479 in
application
Hefei City
Cash from self-dependent
759,029.00 HZ【2013】No. 68
innovation policy
Special funds for
200,000.00 CQ 【2013】No. 1162
enterprise development
Subsidy for job
272,000.00 HRSM (2013) No. 139
qualification training
Funds for foreign trading
1,720,100.00 HZM【2013】No. 115
policy project
Patent subsidy 100,000.00 HZ (2013) No. 68
Implementation of patent
combination and
promotion funds for 200,000.00 MCJ【2014】No. 28
intelligent variable
frequency AC
Tax refund upon collection policy for VAT of
Treasury VAT refunds 196,847.82
software products
other government
1,126,525.05 1,082,663.17
subsidies
Total 9,753,687.37 8,284,145.67
42. Non-operating expenditure
Amount reckoned into non-operation
Item Current Period Last Period
gains/losses
Loss from disposal of non-current
554,394.53 3,304,049.48 554,394.53
assets
Incl.: loss from disposal of fixed
554,394.53 3,304,049.48 554,394.53
assets
External donation 14,142.00 3,000.00 14,142.00
174
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned into non-operation
Item Current Period Last Period
gains/losses
Penalty and late fee 2,204,391.39 108,630.70 2,204,391.39
Other 40,000.00 48,118.12 40,000.00
Total 2,812,927.92 3,463,798.30 2,812,927.92
43. Income tax expenses
Item Current Period Last Period
42,879,242.22 35,448,620.28
Current income tax
Deferred Income Tax -6,084,458.91 642,684.80
Total 36,794,783.31 36,091,305.08
44. Calculation for basic earnings per share and diluted earnings per share
Item Serial Current Period Last Period
Net profit attributable to shareholders of
1 159,106,275.83 135,691,575.62
parent company
Non-recurring gains and losses attributable to
2 15,448,350.72 5,050,878.04
parent company
Net profit attributable to shareholders of
parent company after deduction of 3=1-2 143,657,925.11 130,640,697.58
non-recurring gains and losses
Total shares at the beginning of the year 4 763,739,205.00 763,739,205.00
Additional share capital transferred from public
reserve or additional shares from shares dividend 5 - -
distribution (I)
Additional shares from issuing new shares or
6 - -
debt-converted shares(II)
Accumulative months of the additional shares(II)
commencing from the next month till the end 7 - -
of the year
Decreased shares due to repurchase 8 - -
Accumulative months of the decreased shares
commencing from the next month till the end 9 - -
of the year
Decreased shares due to share shrink 10 - -
Mouths during the report period 11 6 6
Weighted average of ordinary shares issued 12=4+5+6×7÷11-8×9÷11-10 763,739,205.00 763,739,205.00
Basic earnings per share(I) 13=1÷12 0.2083 0.1777
Basic earnings per share(II) 14=3÷12 0.1881 0.1711
Diluted potential ordinary shares dividend
15 - -
recognized as expense
Conversion expense 16 - -
Income tax rate 17 15% 15%
175
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Serial Current Period Last Period
weighted average of ordinary shares added through
18 - -
warrant, exercise of option and convertible bonds
19=[1+(15-16)×(1-17)]÷(12+
Diluted earnings per share(I) 0.2083 0.1777
18)
20=[3+(15-16)×(1-17)]÷(12+
Diluted earnings per share(II) 0.1881 0.1711
18)
45. Other comprehensive income
Item Current Period Last Period
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 591,637.68 -291,859.80
Less: net, carried forward to gains and losses in current period after
- -
disposing overseas operation
Subtotal 591,637.68 -291,859.80
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 591,637.68 -291,859.80
46. Items to cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
Item Current Period
Government subsidy 4,377,654.05
176
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Current Period
Income from leasing and trademark 119,835.09
Deposit 66,072.00
Other 4,240,870.44
Total 8,804,431.58
2) Cash paid for other activities relating to operation
Item Current Period
Marketing support charge 126,708,530.84
AD charge 28,142,447.32
Business travel expenses 19,422,744.48
Employee 11,990,968.00
Rental expense 11,029,584.85
Business activities expenses 10,990,433.17
Service support fee 7,533,188.61
Meeting organization fee 5,546,412.95
Handling Charges 4,746,583.20
Transportation charge 4,514,859.81
Consulting fee 4,010,283.72
Regular bus charges 3,974,532.60
Office expenses 3,434,384.36
Exhibition charges 3,320,732.91
Other expenses 88,065,222.72
Total 333,430,909.54
3) Cash received from other activities relating to investment
Item Current Period
Interest income arising from bank savings 38,510,107.81
Other 2,464,965.18
Total 40,975,072.99
4) Cash paid for other activities relating to investment
Item Current Period
Tender bond of projects returned 1,854,670.00
5) Cash received from other activities relating to financing: Nil.
6) Cash paid for other activities relating to financing
Item Current Period
Amount refund to minority shareholders due to the cancellation of Liuan Meiling
2,973,468.35
and Xinxiang Meiling, subsidiary of the Company
Total 2,973,468.35
177
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(2)Supplementary information about consolidated cash flow statement
1 . Net profit is adjusted to cash flow of operation activities: Current Period Last Period
Net profit 160,996,928.28 131,828,112.39
Add: provision for depreciation of assets 30,071,923.98 10,989,676.33
Depreciation of fixed assets, consumption of oil gas assets and depreciation of
63,028,130.09 64,281,368.42
productive biological assets
Amortization of intangible assets 15,594,981.89 13,287,151.98
Amortization of long-term retained expense -
Loss from disposal of fixed assets, intangible assets and other long term
-915,066.83 3,166,097.14
assets(gain is listed with ―-‖)
Loss from discarding fixed assets as useless (gain is listed with ―-‖) -
Loss from change of fair value(gain is listed with ―-‖) -
Financial expense (gain is listed with ―-‖) -33,737,349.20 -12,810,933.39
Investment loss (gain is listed with ―-‖) 784,297.22 -751,289.68
Decrease of deferred income tax assets (increase is listed with ―-‖) -6,084,458.91 642,684.80
Increase of deferred income tax liabilities (decrease is listed with ―-‖) -
Decrease of inventories (increase is listed with ―-‖) -31,517,872.67 93,176,629.62
Decrease of operational accounts receivable (increase is listed with ―-‖) -1,127,376,537.67 -1,498,077,276.51
Increase of operational accounts payable (decrease is listed with ―-‖) 656,746,298.06 1,050,969,221.13
Other -
Net cash flow arising from operation activities -272,408,725.76 -143,298,557.77
(3)Relevant information about acquiring or disposing subsidiaries or other operation units in previous
years: Nil
(4)Cash and cash equivalent
Item Current Period Last Period
Cash 2,745,918,675.40 2,238,884,137.50
Including: stock cash 150,292.60 107,261.58
Bank deposit available for payment at any time 2,616,457,944.01 2,181,795,210.30
Other monetary capital available for payment at any time 129,310,438.79 56,981,665.62
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 2,715,902,079.52 2,238,884,137.50
Including: restricted cash and cash equivalent used by parent company or
76,214,459.25 45,492,447.31
subsidiaries
Difference of RMB 30,016,595.8 between the cash and cash equivalent at end of the period and
monetary fund, mainly refers to the bank acceptance deposit with over 3 months in term; utilization limited
178
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
cash and cash equivalent was RMB 76,214,459.25, mainly refers to the bank acceptance deposit within 3
months in term.
47. Items to statement of change of shareholders’ equity
(1) ―Other ‖ items of amount at end of last period : 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
Place of Legal
Controlling shareholder and Type of Nature of
registrati representat Organization code
ultimate controller entity business
on ive
Stock Manufacture
Sichuan Changhong Electric Co., Ltd. Mianyang Zhao Yong 20541230-8
company and sales
Sichuan Changhong Electronics Limited Manufacture
Mianyang Zhao Yong 72081866-0
Group Co., Ltd. company and sales
(2) Register capital and change thereof of controlling shareholder
Current Current
Controlling shareholder Period-begin Period-end
increased decreased
Sichuan Changhong Electric Co., Ltd. 4,616,244,222 - - 4,616,244,222
(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 Opening
Closing amount Closing ratio Opening ratio
amount
Sichuan Changhong Electric Co., Ltd. 189,994,153 189,994,153 24.88% 24.88%
2. Subsidiaries: More details of subsidiary found in Note V. (I)
3. Affiliated enterprise
Register Business Legal Register Sharehol Organizatio
Invested Unit Type
place nature rep. capital ding ratio n code
Hefei Meiling Sole
Limited Feidong Manufactures and Ren RMB 10
Energy Technology Co., 31.114% 73733490-2
company County sales Sheming million
Ltd.
Consultant, agent,
Hefei Xingmei Assets Limited renting and Huang RMB 1
Hefei City 48.28% 57851196-6
Management Co., Ltd. company property Youzhi million
management
179
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Register Business Legal Register Sharehol Organizatio
Invested Unit Type
place nature rep. capital ding ratio n code
ChanghongRubaElectricC Privately US$4
Manufactures and
Limited Pakistan 40.00% N/A
ompany(Private)Ltd. sales million
company
4. Other related parties
Organization
Type of relation Related parties Main business
code
Other enterprises under control from the same controlling shareholders or terminal controller
PT.ChangHongElectriCinDonesia Sales N/A
Chengdu Lejiayi Trading Co., Ltd. Sales 79782546-3
Fuzhou Lejiayi Trading Co., Ltd. Sales 67652028-4
Guangdong Changhong Electrics Co., Ltd. Purchase, Sales 78940429-8
Guangdong Changhong Electric Technology Co.,
Utilities provided 78940429-8
Ltd. *note 1
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 service
Sichuan Hongxin Software Co., Ltd. 671440445
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 International Hotel Co., Ltd. Sales 720818652
Sichuan Changhong Jijia Jinggong Co., Ltd. Purchase, Sales 793998375
Sichuan Changhong Precision Electronic Technology
Purchase, Sales 79399836-7
Co., Ltd.
Sichuan Changhong Minsheng Logistic Co., Ltd. Transportation, leasing 79785892-7
Sichuan Changhong Mold Technology Co., Ltd. Purchase, Sales 782291526
Sichuan Changhong Devices Technology Co., Ltd. Purchase 793998359
Sichuan Changhong Xinrui Technology Co., Ltd. Purchase 66276762-2
Sichuan Changhong New Energy Technology Co.,
Purchase, Sales 79399394-5
Ltd.
180
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Organization
Type of relation Related parties Main business
code
Taiyuan Lejiayi Trade Chain Co., Ltd. Sales 779841582
Tianjin Lejiayi Trade Co., Ltd. Sales 67371694-3
Changhong Electric (Australian) Co., Ltd. Sales N/A
Zhongshan Guanghong Mold Technology Co., Ltd. Purchase 69226840
Chongqing Hongshenghuo Trading Co., Ltd. Sales 69226840
081 Electronic Group Sichuan Liyuan Electronic Co.,
Purchase 205809540
Ltd.
Mianyang Hongrun Electronic Co., Ltd. Purchase 769966197
Changhong (H.K.) Trading Co., Ltd. Sales N/A
Sichuan Huafeng Corp. Group Sales 20540125-4
Sichuan Service Exp. Appliance Service Chain Co.,
Sales 66744793
Ltd.
Sichuan Hongyu Metal Manufacture Co., Ltd. Purchase 665361804
Wandao Network Technology Co., Ltd. Sales 55644636-6
ChangHongElectricMiddleeastFZE Sales N/A
Sichuan Changhong Gerun Renewable Resources
Sales 556427608
Co., Ltd.
Xi’an Lejiayi Trading Co., Ltd. Sales 67328229-2
Sales, Labor service
Sichuan Hongwei Technology Co., Ltd. 777463274
received
Chengdu Changhong Electronic Technology Co., Ltd. Sales 696291511
Sichuan Changhong Network Technology Co., Ltd. Sales 720893556
Affiliated enterprise of controlling shareholder and actual controller
BVCH Optronics (Sichuan) Co., Ltd. Purchase 69226840-2
Sichuan Jinghong Package Products Co., Ltd. Purchase 779814584
Sichuan Changhe Technology Co., Ltd. Purchase 777909555
Sichuan Changxin Refrigeration Parts Co., Ltd. Purchase, Sales 779841582
Sichuan Changhong Dongyuan Precision Equipment
Purchase 795816686
Co., Ltd.
Deposit, discount and
Sichuan Changhong Group Finance Co., Ltd. 076120682
issued notes
Mianyang Haili Electrical Appliances Co., Ltd. *note
Purchase, Sales 795816686
2
Purchase, Labor service
Sichuan Jiahong Industrial Co., Ltd. 793987481
received
Other related parties
Guangxi Meiling Household Electrics Co., Ltd Sales 552250948
Fuyang Meiling Appliance Marketing Co., Ltd. Sales 56635286-5
181
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
*Note 1: Guangdong Changhong Digital Technology Co., Ltd. has changed the name as Guangdong
Changhong Electric Technology Co., Ltd
*Note 2: Sichuan Changhong Dongyuan Precision Equipment Co., Ltd. changed the name as Mianyang
Haili Electrical Appliances Co., Ltd
(II)Related transaction
1. Purchase commodities
Current Period Last
Type of related parties and names of related parties
(RMB’0000) Period(RMB’0000)
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 6,370.99 6,081.61
Sichuan Changhong Electronics Group Co., Ltd. - -
Other enterprises under control from the same controlling
-
shareholder or terminal controller
Including: Huayi Compressor Co., Ltd. 34,111.22 36,107.46
Sichuan Changhong Mold Technology Co., Ltd. 20,224.04 18,300.48
Sichuan Changhong Jijia Jinggong Co., Ltd. 9,936.91 8,490.76
Mianyang Hongfa Mould Design Co., Ltd. - 3.50
Sichuan Changhong Packing & Printing Co., Ltd. 2,520.67 1,758.07
Sichuan Changhong Precision Electronic Technology Co.,
376.21 191.30
Ltd.
Sichuan Changhong Devices Technology Co., Ltd. - -
Sichuan Changhong New Energy Technology Co., Ltd. 49.21 35.52
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. 610.14 673.79
Mianyang Hongrun Electronic Co., Ltd. 865.15 573.22
Guangdong Changhong Electrics Co., Ltd. 45.63 19.40
Zhongshan Guanghong Mold Technology Co., Ltd. 2.47 -
Sichuan Hongyu Metal Manufacture Co., Ltd. 38.95 9.40
Sichuan Changhong Electronic Devices Co., Ltd. 2,742.98 1,961.00
Mianyang Hongfa Technology Co., Ltd. 133.63 4.41
Guangdong Changhong Electric Technology Co., Ltd. - 7.84
Sichuan Jiahong Industrial Co., Ltd. 0.52
Sichuan Changhong Power Co., Ltd. 2.29
Sichuan Changhong Xinrui Technology Co., Ltd. 6,273.78 272.16
Affiliated enterprise of controlling shareholder and actual
-
controller:
Including: Sichuan Changhe Technology Co., Ltd. 188.95 -
Sichuan Changxin Refrigeration Parts Co., Ltd. 12,168.66 6,882.94
Mianyang Haili Electrical Appliances Co., Ltd. 9,982.37
Sichuan Changhong Dongyuan Precision Equipment Co., Ltd. - 2,038.47
182
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Current Period Last
Type of related parties and names of related parties
(RMB’0000) Period(RMB’0000)
Sichuan Jinghong Package Products Co., Ltd. 1,095.17 -
Total 107,739.95 83,411.33
The goods purchased by the Company, except for the materials with rare material supply and stable
suppliers, 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 are with the
same pricing policy.
2. Sales of commodities
Current Period Last Period
Type of related parties and names of related parties Amount(RM Ratio Amount(RMB Ratio
B'0000) (%) '0000) (%)
Parent company and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 88,691.22 13.98 71,470.33 12.01
Sichuan Changhong Electronics Group Co., Ltd. -4.87 - 267.46 0.04
Other enterprise controlled by same parent company and
- -
ultimate controller
Including: PT.CHANGHONGELECTRICINDONESIA - - 2,977.40 0.50
Sichuan Changhong Jijia Jinggong Co., Ltd. 1,628.42 0.26 1,814.08 0.30
Sichuan Changhong Mold Technology Co., Ltd. 6,371.52 1.00 5,577.96 0.94
Sichuan CCO Display Technology Co., Ltd. 79.35 0.01 55.60 0.01
Mianyang Lejiayi Trading Chain Co., Ltd. 612.82 0.10 237.14 0.04
Hong Kong (Changhong) Trading Co., Ltd. 7,132.24 1.12 14.01 0.00
Sichuan Changhong Xinrui Technology Co., Ltd. 4,817.86 0.76 264.52 0.04
Sichuan Changhong International Hotel Co., Ltd. - - - -
Sichuan Hongwei Technology Co., Ltd. 0.81 - 0.33 0.00
Sichuan Hongxin Software Co., Ltd. 36.78 0.01 2.03 0.00
Chongqing Hongshenghuo Trading Co., Ltd. 46.61 0.01 51.91 0.01
Huayi Compressor Co., Ltd. 1.55 -
Sichuan Changhong Devices Technology Co., Ltd. - - 0.51 0.00
Sichuan Changhong New Energy Technology Co., Ltd. 1.02 - 31.62 0.01
Changhong Electric (Australian) Co., Ltd. 640.89 0.10 716.74 0.12
Guangdong Changhong Digital Technology Co., Ltd. - - 103.04 0.02
Sichuan Changhong Packing & Printing Co., Ltd. 58.41 0.01 0.56 0.00
Sichuan Changhong Precision Electronic Technology Co.,
- -
Ltd.
Sichuan Changhong Minsheng Logistic Co., Ltd. 43.36 0.01 22.82 0.00
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. - - 254.70 0.04
183
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Type of related parties and names of related parties Amount(RM Ratio Amount(RMB Ratio
B'0000) (%) '0000) (%)
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 528.23 0.08 418.95 0.07
Sichuan Changhong Power Co., Ltd. 4.10 - 3.50 0.00
Wandao Network Technology Co., Ltd. - - - -
CHANGHONGELECTRICMIDDLEEASTFZE - - 1,796.39 0.30
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 378.71 0.06 45.71 0.01
Sichuan Changhong Network Technology Co., Ltd. 3.28 -
Chengdu Changhong Electronic Technology Co., Ltd. 575.60 0.09
Hefei Changhong Industrial Co., Ltd. 93.12 0.01 115.91 0.02
Sichuan Changhong Property Co., Ltd. - - 0.80 0.00
Zhongshan Guanghong Mold Technology Co., Ltd. 0.14 - - -
Chongqing Wandao E-Commerce Co., Ltd. - - - -
ChanghongElectricRussiaLLC - - - -
Sichuan Changhong Electronic Devices Co., Ltd. 0.85 - - -
Chengdu Changhong Minsheng Logistic Co., Ltd. - - - -
Sichuan Changhong Grant Hotel Co., Ltd. - - - -
Sichuan Huafeng Corp. Group - - - -
Guangdong Changhong Electrics Co., Ltd. 1.36 - - -
Yibing Hongxing Electronics Co., Ltd. - - - -
Affiliated enterprise of controlling shareholder and actual
- -
controller
Including: Sichuan Changhong Dongyuan Precision Equipment
- - 2.10 0.00
Co., Ltd.
Sichuan Changxin Refrigeration Parts Co., Ltd. 3,955.99 0.62 - -
Other related parties - -
Including: Haozhou Meiling Appliance Marketing Co., Ltd. - - 443.23 0.07
Changzhou Meiling Appliance Marketing Co., Ltd. - - -5.64 -0.00
Guangxi Meiling Household Electrics Co., Ltd 4,021.03 0.63 5,318.43 0.89
Xuancheng Meiling Appliance Marketing Co., Ltd. - - 1,000.34 0.17
Jiujiang Meiling Appliance Marketing Co., Ltd. - - 50.49 0.01
Fuyang Meiling Appliance Marketing Co., Ltd. 7,761.69 1.22 11,001.28 1.85
Total 127,482.08 20.08 104,054.27 17.48
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 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‖.
184
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
3. Rent of related parties
Leasing
Pricing
Type of assets Date of income
Lessor Lessee Date of end basis for
leasing starting recognized
leasing
in this year
Hefei Branch of Sichuan Contract of
Hefei Meiling
Changhong Mold Technology Plant 2014/1/1 2014/12/31 workshop 647,190.00
Co., Ltd.
Co., Ltd. leasing
Hefei Branch of Sichuan Contract of
Hefei Meiling
Changhong Jijia Jinggong Co., Plant 2014/1/1 2014/12/31 workshop 233,280.00
Co., Ltd.
Ltd. leasing
Sichuan
Changhong Air BVCH Optronics (Sichuan) Co., Contract of
Goods lift 2014/1/1 2014/12/31 63,720.00
Conditioner Ltd. leasing
Co., Ltd.
Zhongshan Part of the
Changhong Guangdong Changhong Electrics office Contract of
2014/1/1 2014/12/31 390,093.20
Electric Co., Co., Ltd. building for leasing
LTD rent
Zhongshan Part of the
Changhong Sichuan Changhong Minsheng office Contract of
2014/1/1 2014/12/31 18,642.96
Electric Co., Logistic Co., Ltd. building for leasing
LTD rent
Zhongshan
Changhong Sichuan Changhong Minsheng 2nd living Contract of
2014/1/1 2014/12/31 3,135.45
Electric Co., Logistic Co., Ltd. quarters leasing
LTD
Zhongshan
Changhong Guangdong Changhong Electrics 2nd living Contract of
2014/1/1 2014/12/31 34,871.24
Electric Co., Co., Ltd. quarters leasing
LTD
Zhongshan
Changhong Zhongshan Guanghong Mold 2nd living Contract of
2014/1/1 2014/12/31 4,784.71
Electric Co., Technology Co., Ltd. quarters leasing
LTD
Zhongshan
Changhong Guangdong Changhong Electric 2nd living Contract of
2014/1/1 2014/12/31 18,241.14
Electric Co., Technology Co., Ltd. quarters leasing
LTD
Jiangxi Meiling Jingdezhen Branch of Sichuan
Plant rental Contract of
Appliance Co., Changhong Mold Technology 2014/1/1 2014/12/31 225,960.00
(5670 ㎡) leasing
Ld. Co., Ltd.
Mianyang
Meiling Sichuan Changhong Packing & Warehousing Contract of
2014/1/1 2014/12/31 5,203.02
Refrigeration Printing Co., Ltd. rental leasing
Co., Ltd.
185
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Leasing
Pricing
Type of assets Date of income
Lessor Lessee Date of end basis for
leasing starting recognized
leasing
in this year
Mianyang
Meiling Sichuan Changhong Mold Warehousing Contract of
2014/1/1 2014/12/31 38,433.96
Refrigeration Technology Co., Ltd. rental leasing
Co., Ltd.
Mianyang
Meiling Sichuan Jinghong Package Warehousing Contract of
2014/1/1 2014/12/31 679.25
Refrigeration Products Co., Ltd. rental leasing
Co., Ltd.
Mianyang
Meiling Sichuan Changhe Technology Warehousing Contract of
2014/1/1 2014/12/31 273.21
Refrigeration Co., Ltd. rental leasing
Co., Ltd.
Mianyang
Meiling Sichuan Changxin Refrigeration Warehousing Contract of
2014/1/1 2014/12/31 2,092.08
Refrigeration Parts Co., Ltd. rental leasing
Co., Ltd.
4. Lessee of related parties
Leasing income
Type of Date of Pricing basis
Lessor Lessee Date of end recognized in
assets leasing starting for leasing
this period
Sichuan
Mianyang Meiling
Changhong Office Contract of assts
Software Technology 2014-1-1 2014-12-31 11,330.00
Electric Co., room leasing
Co., Ltd.
Ltd.
Sichuan Shanghai, Lanzhou
Changhong and Mianyang Meiling Office Contract of assts
2014-1-1 2014-12-31 323,153.02
Electric Co., Appliance Marketing room leasing
Ltd. Co., Ltd.
5. Related guarantee
(1) Guarantee to related parties from the Company: Nil
(2) Guarantee between companies in consolidation statement range:
Maximized Date start for Due date for Implement
Party providing guarantee Party receiving guarantee
guarantee amount guarantee guarantee ed (Y/N)
Zhongshan Changhong
Hefei Meiling Co., Ltd. 100,000,000.00 2013.12.06 2014.12.06 N
Electric Co., LTD
Zhongshan Changhong
Hefei Meiling Co., Ltd. 80,000,000.00 2013.12.04 2014.12.03 N
Electric Co., LTD
On 27 December 2013, the Company entered into ―Guarantee Contract with Ceiling Amount‖ with
Zhongshan Branch of Bank of Communications [ ZJYBZNo.: 3130827], for offering ceiling guarantee to the
―comprehensive credit contract‖ [ZJYZ Zi No. 4130019] signed between the Zhongshan Changhong Electric
186
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Co., Ltd. and Zhongshan Branch of Bank of Communications Co., Ltd. Amount of claims for guarantee was
up to RMB 100 million. Principal creditor’s right guarantee was the whole creditor to a primary contract
under the Contract; including vary loans or import bill advance, collection of import financing, import export
financing, bill purchased, export collection financing, the export invoice financing, packing credit or other
financing accounts that issued to debtor from creditor in line with the main contract; or, claim (contingent
claim included) of debtor enjoyed by the creditor in way of opening bank acceptance bill, L/C or back letter
(including SLC).
On 26 November 2013, the Company entered into ―Irrevocable Guarantee of Maximum Amount‖ with
Fushan Ronggui Branch of China Merchants Bank [ Rong Zi No.: BZ001321008301], for offering ceiling
guarantee to the ―Banking Facilities‖[Rong Zi No. 0013210083] signed between the Zhongshan Changhong
Electric Co., Ltd. and Fushan Ronggui Branch of China Merchants Bank. Amount of claims for guarantee
was up to RMB 80 million. Principal creditor’s right guarantee was the whole creditor to a primary contract
under the Contract; including vary loans or commercial draft, L/C, L/G and reimbursed amount of shipping
guarantee that issued to debtor from creditor in line with the main contract; or, claim (contingent claim
included) enjoyed by debtor due to repaid under the items of L/C issued and import bill advance arising from
L/C opening
(3) Guarantee to the Company from related parties: Nil.
6. Assets transfer of related parties
Type of related
Name of related parties Current Period Last Period
transaction
Purchasing fixed
Sichuan Changhong Electric Co., Ltd. 1,517,721.34 9,848,769.23
assets
Purchasing fixed
Sichuan Hongxin Software Co., Ltd. 501,886.80 1,414,100.00
assets
Purchasing fixed
Mianyang Hongfa Technology Co., Ltd. 354,700.85 -
assets
Purchasing fixed
Sichuan Changhong Mold Technology Co., Ltd. 1,257,928.21 -
assets
Total 3,632,237.20 11,262,869.23
Sichuan Changhong Gerun Renewable Resources
Fixed assets sold 447,081.71 68,591.50
Co., Ltd.
Sichuan Changhong Mold Technology Co., Ltd. Fixed assets sold - 40,000.00
Sichuan Service Exp. Appliance Service Chain
Fixed assets sold - 50,000.00
Co., Ltd.
Total 447,081.71 158,591.50
7. Labor service received
Labor services providers Current Period Last Period
Sichuan Hongxin Software Co., Ltd. - 500,000.00
Sichuan Changhong Minsheng Logistic Co., Ltd. 165,899,805.70 189,294,408.44
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 61,099,395.11 36,481,760.48
187
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Sichuan Changhong Electric Co., Ltd. 9,832,307.86 6,380,554.84
Sichuan Hongwei Technology Co., Ltd. 711,735.85 -
Guangdong Changhong Electrics Co., Ltd. 66,923.93 -
Zhongshan Guanghong Mold Technology Co., Ltd. 47,417.29 -
Sichuan Jiahong Industrial Co., Ltd. 23,915.70 -
Total 237,681,501.48 232,656,723.76
8. Fuel & power supply
Name of related parties Current Period Last Period
Guangdong Changhong Electrics Co., Ltd. 243,586.93 536,599.81
Guangdong Changhong Electric Technology Co., Ltd. 1,468.91 23,367.99
Sichuan Changhong Minsheng Logistic Co., Ltd. 11,698.34 17,626.80
Sichuan Exp. Appliance Service Chain Corp. 1,089.83 1,272.40
Zhongshan Guanghong Mold Technology Co., Ltd. 741.90 -
Sichuan Changhong Jijia Jinggong Co., Ltd. 73,535.57 144,972.65
Sichuan Changhong Mold Technology Co., Ltd. 3,487,083.69 3,251,392.03
Total 3,819,205.17 3,975,231.68
9. Fuel & power received
Name of related parties Current Period Last Period
Sichuan Changhong Co., Ltd. 8,123,152.39
Huayi Compressor Co., Ltd. 610,620.07 534,737.10
Total 8,733,772.46 534,737.10
10. Changhong Group Finance Company
(1) Balance of deposits
Company Period-end Deposit interest
Hefei Meiling Co., Ltd. 30,296,131.73 259,058.01
Sichuan Changhong Air Conditioner
6,149,952.41 281,414.52
Co., Ltd.
Zhongshan Changhong Electric Co.,
2,440.39 0.39
LTD
Total 36,448,524.53 540,472.92
(2) Discount
Face amount of bank Discount of Bank
Expenses from
Company acceptance bill discount acceptance bill
discount
Hefei Meiling Co., Ltd. 275,733,636.51 273,698,025.98 2,035,610.53
Sichuan Changhong Air Conditioner
58,969,388.38 58,433,790.99 535,597.39
Co., Ltd.
188
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Face amount of bank Discount of Bank
Expenses from
Company acceptance bill discount acceptance bill
discount
Total 334,703,024.89 332,131,816.97 2,571,207.92
(3) Note issued
Company Issuer Face amount Type
Sichuan Changhong Air Sichuan Changhong Group Finance Commercial acceptance
40,439,283.26
Conditioner Co., Ltd. Co., Ltd. bill
Total 40,439,283.26
11. Trademark licensing authorized by related parties, patent implementation permit
On 1 June 2010, the proposal of ―Trademark Licensing Contract‖ signed between Sichuan Changhong
Air-conditioner Co., Ltd and Sichuan Changhong Electric Co., Ltd. has been approved by 34th Meeting of
6th Session of the Board. Allow Changhong Air-conditioner entered into the ―Trademark Licensing Contract‖
with Sichuan Changhong. The contract agrees that: under the premise of being the controlling shareholder of
Hefei Meiling Co., Ltd., Sichuan Changhong, and being the controlling shareholder of Changhong
Air-conditioner, Hefei Meiling Co., Ltd., the trademark owner, Sichuan Changhong, will authorize the
trademark of ―Changhong‖ for long-term free use to Changhong Air-conditioner and Zhongshan Changhong
in products of air-conditioners and air purification equipment. Changhong Air-conditioner will use in the
trademark registered place by regulations.
On 1 June 2010, the proposal of ―Trademark Licensing Contract‖ signed between Zhongshan
Changhong Appliance Co., Ltd and Sichuan Changhong Electric Co., Ltd has been approved by 34th
Meeting of 6th Session of the Board. Allow Zhongshan Changhong entered into the ―Trademark Licensing
Contract‖ with Sichuan Changhong. The contract agrees that: under the premise of being the controlling
shareholder of Hefei Meiling Co., Ltd., Sichuan Changhong, and being the controlling shareholder of
Zhongshan Changhong, Hefei Meiling Co., Ltd., the trademark owner, Sichuan Changhong, will authorize
the trademark of ―Changhong‖ for long-term free use to Changhong Air-conditioner and Zhongshan
Changhong in products of air-conditioners and air purification equipment. Zhongshan Changhong will use in
the trademark registered place by regulations.
On 1 June 2010, the proposal of ―Patent Permit Contract‖ signed between Zhongshan Changhong
Appliance Co., Ltd and Sichuan Changhong Electric Co., Ltd has been approved by 34th Meeting of 6th
Session of the Board. Allow controlling subsidiary – Zhongshan Changhong entered into the ―Patent Permit
Contract‖ with Sichuan Changhong. The contract agrees that: under the premise of being the controlling
shareholder of Hefei Meiling Co., Ltd., Sichuan Changhong, and being the controlling shareholder of
Zhongshan Changhong, Hefei Meiling Co., Ltd., the trademark owner, Sichuan Changhong, will authorize
four patents in air-conditioner (including machine union of air-conditioner with separation, equipment of
cool-to-heat of air-conditioner, removal air-conditioner with heat pump style and removal air-conditioner
with shower style) to Zhongshan Changhong for free use in the validity of patent. The permit and use rage
189
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
are exclusively by Zhongshan Changhong, un-transference, un-permit and use in global. Zhongshan
Changhong has the rights to manufacture, use, and develop and sale of the permit products.
On 10 November 2010, the 38th Meeting of 6th Session of the Board approved the followed proposals:
Sichuan Changhong Air-conditioner, entered into ―Supplementary Contract of Patent License for
Implementation‖ with Sichuan Changhong; Zhongshan Changhong, , entered into ―Patent License Contract
for Implementation‖ with Sichuan Changhong and Zhongshan Changhong, entered into ―Supplementary
Contract of Patent License for Implementation ―with Sichuan Changhong. The contract agrees that: agreed
Sichuan Changhong entered into ―Supplementary Contract of Trademark Licensing‖ with Changhong
Air-conditioner, Zhongshan Changhong respectively. Terminated relevant clause of free-use authorization
concerning authorized to Changhong Air-conditioner and Zhongshan Changhong. That is terminated
premise of ―Sichuan Changhong being the controlling shareholder of Meiling Apparatus and Meiling
Apparatus being the controlling shareholders of Changhong Air-conditioner and Zhongshan Changhong ‖;
agreed the Supplementary Contract of Patent License for Implementation signed between Zhongshan
Changhong and Sichuan Changhong, the supplementary contract stated that terminated the relevant clause of
premise of authorized Zhongshan Changhong for free-use that listed in signed four pieces of Contract of
Patent License for Implementation, that is‖ terminated the premise of Sichuan Changhong being the
controlling shareholders of Meiling Apparatus and Meiling Apparatus being the controlling shareholders of
Zhongshan Changhong‖.
In 2013, according to the operation requirement, and with purpose of supporting the long-term and
independent stable development of the Company as well as AC business, Changhong Air-conditioner entered
into a ―Trademark Licensing Contract‖ with Sichuan Changhong. The contract agrees that: Sichuan
Changhong, the trademark owner, will authorize the trademark of ―Wind Doll‖ (logo) for long-term free use
to Changhong Air-conditioner in products of air-conditioners, air purification equipment and machinery
products. While the term for trademark involved is going to expire, Sichuan Changhong should ensure to
extend the terms on time.
On 26 February 2014, according to the operation requirement, the Company entered into a ―Trademark
Licensing Contract‖ with Sichuan Changhong. Sichuan Changhong, with trademark ―CHiQ‖ applied for
registration, authorized the Company and subordinate controlling subsidiary of the Company (agreed by
Sichuan Changhong) to use the trademark for free on basis of the products of intelligent refrigerator and AC
under the form of ―Home Internet‖. Permission period from 20 February 2014 to 19 February 2017
On 16 June 2014, according to the operation requirement, the Company entered into a ―Trademark
Licensing Contract‖ with Sichuan Changhong. Sichuan Changhong, agrees to authorized the trademark of
―CHANGHONG‖ and ―长虹‖ for free use via way of exclusive license, to the Company and controlling
subsidiary of the Company who obtained the agreed in writing by Sichuan Changhong in refrigerators and
freezer products (products, packages and webpage included) sale through electrical business channel and TV
shopping. Permission period from 16 June 2014 to 15 June 2017
(III) Balance of contact with related party
1. Account receivable of related party
190
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Relate parties (item) Period-end Period-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. - 2,113,318.22
Sichuan Changhong Electronics Group Co., Ltd. 3,191,420.00 3,202,928.08
Other enterprises under control from the same controlling shareholder y
-
or terminal controller
Including: Sichuan Changhong Mold Technology Co., Ltd. 175,791.61 0.01
Jingdezhen Branch of Sichuan Changhong Mold Technology Co.,
- 83,776.94
Ltd.
Changhong Electric (Australian) Co., Ltd. 4,106,787.65 -
Sichuan Changhong Xinrui Technology Co., Ltd. 11,934,283.85 171,881.00
PT.CHANGHONGELECTRICINDONESIA 14,654,780.06 69,383,665.08
Hefei Changhong Industrial Co., Ltd. 978,245.19 1,608,089.81
Huayi Compressor Co., Ltd. - 0.43
Sichuan Changhong International Hotel Co., Ltd. - 2,372.00
Sichuan Hongou Display Device Co., Ltd. - 131,550.04
Sichuan Changhong Jijia Jinggong Co., Ltd. - 0.06
Sichuan Changhong Minsheng Logistic Co., Ltd. - 293,399.00
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 1,704,669.26 410,661.80
Sichuan Changhong Precision Electronic Technology Co., Ltd. 61,041.23 427,288.36
CHANGHONGELECTRIC(AUSTRALIA) - 7,320,793.05
Hong Kong (Changhong) Trading Co., Ltd. 59,193,299.76 1,493,322.92
CHANGHONG(HK)TRADINGLIMITED - 2,215,776.50
Zhongshan Guanghong Mold Technology Co., Ltd. - 61,067.53
Guangdong Changhong Electric Technology Co., Ltd. - 5,967.00
Chengdu Changhong Minsheng Logistic Co., Ltd. 840,000.00 840,000.00
Guangdong Changhong Digital Technology Co., Ltd. 120,000.00 120,000.00
081 Electronic Group Co., Ltd. 2,086,000.00 2,086,000.00
Sichuan Changhong Power Co., Ltd. 48,000.00 -
Sichuan Changhong Electronic Devices Co., Ltd. 64,949.99 454,649.99
Chengdu Changhong Electronic Technology Co., Ltd. 6,734,560.00 -
Sichuan Changhong Gerun Renewable Resources Co., Ltd. - 1.44
Sichuan Changhong New Energy Technology Co., Ltd. - 369,999.99
Yibing Hongxing Electronics Co., Ltd. 2,241,575.00 2,241,575.00
Sichuan Changhong Packing & Printing Co., Ltd. 3,480.00 2,400.00
Joint-venture and affiliated of controlling shareholder and actual
-
controller
Sichuan Changxin Refrigeration Parts Co., Ltd. 1,200.00 -
Anhui Xinghao Plasma Display Panels Co., Ltd. 3,276,511.72 3,276,511.72
Joint-venture and affiliated -
191
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Relate parties (item) Period-end Period-begin
Including: Hefei Meiling Sole Energy Technology Co., Ltd. 50,010.80 50,010.80
CHANGHONGRUBAELECTRICCO.,LTD. 14,445,050.15 15,097,657.84
Other related parties -
Guangxi Meiling Appliance Marketing Co., Ltd. 26,940,207.08 16,516,766.32
Haozhou Meiling Appliance Marketing Co., Ltd. - 1,304.50
Total 152,851,863.35 129,982,735.43
2. Account receivable in advance of related parties
Relate parties (item) Period-end Period-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 27,303,728.84 -
Other enterprises under control from the same controlling shareholder y
or terminal controller
Including: Chengdu Lejiayi Trading Co., Ltd. 501.21 -
Sichuan Changhong Minsheng Logistic Co., Ltd. 72.00 -
Sichuan Changhong Electronic System Co., Ltd. - 1.00
Mianyang Lejiayi Trading Chain Co., Ltd. 532,718.41 777,773.78
Sichuan Changhong Mold Technology Co., Ltd. 139,575.48 2,868,020.81
Sichuan Changhong Devices Technology Co., Ltd. - 0.33
Chongqing Hongshenghuo Trading Co., Ltd. 303,963.38 13,931.00
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 339,604.69 -
Wandao Network Technology Co., Ltd. - 2,000.00
Sichuan CCO Display Technology Co., Ltd. 151,343.00 106,323.00
Sichuan Changhong Jijia Jinggong Co., Ltd. - 2,799,131.51
Lejiayi Chain Management Co., Ltd. 260.08 260.08
CHANGHONG(HK)TRADINGLIMITED 12,718,633.78 -
Huayi Compressor Co., Ltd. 748,700.00 -
CHANGHONGELECTRICRUSSIALLC - 76,260.01
Affiliated enterprise of controlling shareholder and actual controller -
Including: Sichuan Changhong Dongyuan Precision Equipment Co., Ltd. - 0.33
Joint-venture and affiliated of Subsidiary
Including: Jiujiang Meiling Appliance Marketing Co., Ltd. - 121,802.94
Xuancheng Meiling Appliance Marketing Co., Ltd. - 2,150.00
Fuyang Meiling Appliance Marketing Co., Ltd. 21,647,406.50 12,071,979.54
Total 63,886,507.37 18,839,634.33
3. Account payable of related parties
relate parties (item) Period-end Period-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electronics Group Co., Ltd. 2,601,445.56 60,553.56
192
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
relate parties (item) Period-end Period-begin
Parent company and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 34,501,683.53 36,646,331.81
Other enterprises under control from the same controlling shareholder y
or terminal controller
Including: Sichuan Changhong Mold Technology Co., Ltd. 114,163,344.05 67,579,456.47
Huayi Compressor Co., Ltd. 137,892,808.23 3,023,746.64
Sichuan Changhong Jijia Jinggong Co., Ltd. 104,549,587.29 71,940,952.54
Sichuan Changhong Minsheng Logistic Co., Ltd. 29,207,956.08 42,010,791.22
Sichuan Changhong Packing & Printing Co., Ltd. 20,298,882.07 13,455,000.19
Sichuan Changhong Devices Technology Co., Ltd. - 2,999.98
Mianyang Hongrun Electronic Co., Ltd. 4,869,813.59 2,910,486.27
Sichuan Changhong Lighting Technology Co., Ltd. 3,282.05
Sichuan Changhong Precision Electronic Technology Co., Ltd. 3,326,371.47 1,938,535.62
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. 114,543.83 1,384,533.99
Sichuan Changhong New Energy Technology Co., Ltd. 225,164.75 133,788.80
Sichuan Hongxin Software Co., Ltd. - 402,000.00
Sichuan Changhong Power Co., Ltd. 30,797.56 48,068.18
Sichuan Hongyu Metal Manufacture Co., Ltd. 402,512.56 119,163.86
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 1,235,875.27 549,594.23
Sichuan Changhong Electronic Devices Co., Ltd. 20,691,629.57 12,788,937.64
Sichuan Hongwei Technology Co., Ltd. 37,180.00 20,280.00
Sichuan Changhong International Hotel Co., Ltd. 1,570.00 66,621.80
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 10,503.63 10,503.63
Sichuan Changhong Xinrui Technology Co., Ltd. 25,399,250.39 752,188.49
Sichuan Changhong International Travel Agency Co., Ltd. 27,430.70 103,600.10
Mianyang Hongfa Technology Co., Ltd. - 187,961.22
Jiaxipera Compressor Co., ltd. - 4,462,104.58
Huayi Compressor (Jingzhou) Co., Ltd. - 2,978,545.54
Jingdezhen Honghua Home Appliance Parts Co., Ltd. - 792,185.34
Guangdong Changhong Electrics Co., Ltd. 360,291.90 18,290.00
Joint-venture and affiliated
Including: Fuyang Meiling Appliance Marketing Co., Ltd. - 1,873.00
Other related parties
Including: Sichuan Changxin Refrigeration Parts Co., Ltd. 22,322,574.02 22,381,798.81
Sichuan Jinghong Package Products Co., Ltd. 3,226,303.14 4,513,535.23
Sichuan Changhe Technology Co., Ltd. 1,778,031.88 1,006,432.99
Mianyang Haili Electrical Appliances Co., Ltd. 28,565,124.30 -
Total 555,843,957.42 292,290,861.73
4. Account payable in advance of related parties
Relate parties (item) Period-end Period-begin
193
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Relate parties (item) Period-end Period-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 1,336.00 1,486.00
Other enterprises under control from the same controlling shareholder y
Including: controller
or terminalSichuan Changhong Mold Technology Co., Ltd. 138,580.25 -
081 Electronic Group Sichuan Liyuan Electronic Co., Ltd. 34.80 -
Sichuan Changhong Minsheng Logistic Co., Ltd. 94,768.20 -
Sichuan Hongwei Technology Co., Ltd. 140,992.78
Mianyang Hongfa Technology Co., Ltd. 175,013.76 147,000.00
Affiliated enterprise of controlling shareholder and actual controller
Including: Sichuan Changhong Dongyuan Precision Equipment Co., Ltd. - 76,135.78
Mianyang Haili Electrical Appliances Co., Ltd. 174,803.06
Joint-venture and affiliated
Including: Hefei Meiling Sole Energy Technology Co., Ltd. 10,802.81 10,802.81
Total 736,331.66 235,424.59
5. Other account receivable of related parties
Relate parties (item) Period-end Period-begin
Other enterprises under control from the same controlling shareholder y
or terminal controller
Sichuan Changhong Mold Technology Co., Ltd. - 20,000.00
Sichuan Changhong Jijia Jinggong Co., Ltd. - 35,788.80
Total - 55,788.80
6. Other account payable of related parties
Relate parties (item) Period-end Period-begin
Controlling shareholder and ultimate controller
Including: Sichuan Changhong Electric Co., Ltd. 1,745,405.22 18,021,861.45
Other enterprises under control from the same controlling shareholder y
-
or terminal controller
Including: Sichuan Changhong Minsheng Logistic Co., Ltd. 586,504.95 613,121.75
Hefei Branch of Sichuan Changhong Minsheng Logistic Co., Ltd. - 500.00
Sichuan Changhong Mold Technology Co., Ltd. 322,498.47 320,500.00
Sichuan Changhong Jijia Jinggong Co., Ltd. 211,466.64 200,500.00
Sichuan Changhong Gerun Renewable Resources Co., Ltd. 10,000.00 10,000.00
Sichuan Changhong Xinrui Technology Co., Ltd. 200,000.00
Huayi Compressor Co., Ltd. 50,000.00
Jingdezhen Honghua Home Appliance Parts Co., Ltd. - 50,000.00
Sichuan Service Exp. Appliance Service Chain Co., Ltd. - 33,365.00
Guangdong Changhong Electrics Co., Ltd. 78,301.00 905,892.22
Affiliated enterprise of controlling shareholder and actual controller -
Including: Sichuan Changhe Technology Co., Ltd. 50,000.00 50,000.00
194
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Relate parties (item) Period-end Period-begin
Mianyang Haili Electrical Appliances Co., Ltd. 527,934.86 -
Joint-venture and affiliated -
Including: Fuyang Meiling Appliance Marketing Co., Ltd. 3,000,000.00 3,000,000.00
Total 6,782,111.14 23,205,740.42
IX. Share-based payment: Nil
X. Contingency
(I) Pending action or possible liabilities formed from arbitration: Nil
(II) Contingency from external guarantee: Nil
(III) Other contingency
On 4 June 2013, the Notice of Stop the Promotion Policy of Energy-Saving Appliances Subsidy [CJ
(2013) No. 210] was issued jointly by Ministry of Finance, NDRC and MIT. The consumers, no longer be
favor in the central financial subsidies while purchasing five types energy efficient appliances as AC, FPTV,
refrigerator, washing machine and water heater since 1 June 2013. Enterprise with efficient appliances
promoted should collected and sorting data of the product manufacture and sales as soon as possible, entered
relevant information to the ―People-benefit project system of energy-saving products‖ on time; at the same
time, prepared annual liquidation report of the subsidies, reported to local (place of registration) finance
authority, development & reform commission and MIT for approval, reported level by level after approval to
Ministry of Finance, NDRC and MIT before 30 June 2013.。Ministry of Finance, NDRC and MIT will carry
out subsidy liquidation according to the reported data and relevant approval results. Liquidation review for
relevant energy-saving subsidy of AC and refrigerator is not over yet up to 30 June 2014.
XI. Commitments
(I)Significant commitment
1. The signed external investment contract which has not been implemented or implemented completely
and relevant financial expenses: Nil
2. The signed bulk contract which is being implemented or ready for implementation: Nil
3. The signed leasing contract which is being implemented or ready for implementation and the
financial effects: Nil
4. The signed merger&acquisition agreement which is being implemented or ready for implementation:
Nil
5. The signed restructure agreement which is being implemented or ready for implementation: Nil
6. Other significant commitments and performance:
For details, please refer to the announcement on commitment performance by shareholders, related
parties and the Company dated 15 February 2014 and announcement on commitment implementation from
shareholders, related parties and the Company dated 6 June 2014
(II) Besides the above events, the Company had no other significant commitment up to 30 June 2014
XII. Events occurring after the balance sheet date
195
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(I) Non-adjustment event after balance sheet date
1. Significant lawsuits, arbitrations and commitments made after balance sheet date: Nil
2. Significant changes on assets value, tax policy and foreign exchange rate after balance sheet date: Nil
3. Significant losses on assets due to nature disaster after balance sheet date: Nil
4. Shares and bonds issuance and other significant debt financing after balance sheet date: Nil
5. Share capital transfer from public reserve fund after balance sheet date: Nil
6. Significant deficit occurred after balance sheet date: Nil
7. Enterprise merge or subsidiary disposal occurred after balance sheet date: Nil
8. Significant external investment after balance sheet date: Nil
9. Other significant event after balance sheet date: Nil
(II) Other than the above mentioned events, the Company have no other events occurred after balance
sheet date.
XIII. Segment information (Unit: RMB’0000)
(I) Segment of fist half of 2013
Refrigerat Offset
Air-condit Washing Marketin
Item or and Other between Total
ion machine g
freezer
segments
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
(II) Segment of fist half of 2014
Refrigerat Offset
Air-condit Washing Marketin
Item or and Other between Total
ion machine g
freezer segments
Operation income 327,811.40 247,322.67 10.48 243,010.31 22,450.15 206,166.11 634,438.91
196
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Refrigerat Offset
Air-condit Washing Marketin
Item or and Other between Total
ion machine g
freezer segments
Including: income from
139,453.29 246,698.20 8.54 243,010.31 5,268.57 - 634,438.91
external transaction
Income from
transaction between 188,358.11 624.47 1.94 - 17,181.59 206,166.11 -
segments
Operation expense 320,882.78 239,733.71 23.89 243,815.54 22,057.60 208,466.97 618,046.56
Operation profit 6,928.63 7,588.96 -13.41 -805.23 392.55 - 16,392.35
Total assets 837,686.69 265,299.80 1,652.56 79,676.59 24,084.07 199,564.91 1,008,834.79
Total liabilities 489,315.75 197,125.79 2,963.17 92,943.53 11,868.53 113,852.82 680,363.95
Supplementary
information
Depreciation and
5,956.90 1,392.76 0.03 8.86 272.52 -231.25 7,862.31
amortization expense
Capital expenditure 4,774.75 4,909.34 - 8.43 124.26 - 9,816.78
Non-cash expense
except for depreciation 13,060.62 35,304.62 14.41 21,173.52 1,332.98 -244.41 71,130.55
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 Period-begin
Houses and buildings ( investment real estate) 14,739,271.93 15,124,378.72
Mechanical equipment (fixed assets leased temporary) 176,770.96 262,490.21
Land use rights( investment real estate) 557,814.73 576,999.01
Total 15,473,857.62 15,963,867.94
5. Minimum payment for rent in major operation renting: Nil
(IV) Financial instrument offering outside and convertible to shares at year-end: Nil
(V) Assets and liabilities measured by fair value: Nil
(VI) Financial assets and liabilities with foreign currency (RMB conversion)
accumulative
Gains and
fair value Impairment
losses of fair
Item Period-begin change withdrew this Period-end
value change
recorded in period
of this period
equity
197
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
accumulative
Gains and
fair value Impairment
losses of fair
Item Period-begin change withdrew this Period-end
value change
recorded in period
of this period
equity
Financial assets
Financial assets measured by fair
value and whose change is
recorded in current gains and - - - - -
losses (excluding derivative
financial assets)
Derivative financial assets - - - - -
Loans and account receivable 168,222,293.41 - - 12,875,057.19 342,400,993.20
Financial assets available for sale - - - - -
Hold-to-maturity investment - - - - -
Subtotal of financial assets 168,222,293.41 - - 12,875,057.19 342,400,993.20
Financial liability
Foreign currency loans 66,433,079.86 - - - 858,594,659.12
Subtotal of financial liability 66,433,079.86 - - - 858,594,659.12
(VII) Pension Scheme and major changes: Nil
(VIII) Discontinuing operation: Nil
XV. Notes to main items of financial statement of parent company
1. Account receivable
(1) Risk structure of account receivable
Period-end
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Account receivable with single significant amount
- - - -
and withdrawal single item bad debt provision
Account receivable withdrawal bad debt provision
— — — —
by combination
combination 1 238,749,132.82 24.33 15,537,518.85 6.51
combination 2 742,539,023.04 75.67 -
Subtotal 981,288,155.86 100.00 15,537,518.85 1.58
Account receivable with single minor amount but
- - - -
withdrawal single item bad debt provision
Total 981,288,155.86 100.00 15,537,518.85 1.58
Net value 965,750,637.01
(Continued)
Period-begin
Category
Book balance Bad debt provision
198
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Amount Ratio (%) Amount Ratio (%)
Account receivable with single significant amount
- - - -
and withdrawal single item bad debt provision
Account receivable withdrawal bad debt provision
— — — —
by combination
combination 1 143,480,356.13 18.05 10,471,313.94 7.30
combination 2 649,382,442.21 81.72 - -
Subtotal 792,862,798.34 99.77 10,471,313.94 1.32
Account receivable with single minor amount but
1,794,049.35 0.23 1,794,049.35 100.00
withdrawal single item bad debt provision
Total 794,656,847.69 100.00 12,265,363.29 1.54
Net value 782,391,484.40
1) Account receivable with single significant amount and withdrawal bad debt provision single: Nil
2) Account receivable with Withdrawal of bad debt provision by aging account in combination 1
Period-end Period-begin
Book Age Book balance Bad debt Book balance Bad debt
Amount Ratio (%) provision Amount Ratio (%) provision
Within 1
231,792,408.40 97.09 11,589,620.42 139,087,565.82 96.95 6,954,378.29
year
1-2 years 2,922,594.94 1.22 438,389.24 354,376.66 0.25 53,156.50
2-3 years 296,525.17 0.12 103,783.81 350,820.14 0.24 122,787.05
3-4 years 634,175.40 0.27 348,796.47 634,175.40 0.44 348,796.47
4-5 years 310,000.00 0.13 263,500.00 408,149.86 0.28 346,927.38
Over 5
2,793,428.91 1.17 2,793,428.91 2,645,268.25 1.84 2,645,268.25
years
Total 238,749,132.82 100.00 15,537,518.85 143,480,356.13 100.00 10,471,313.94
3) Account receivable without bad debt provision withdrawal in combination 2
Combination Book balance
Current account with related parties without bad debt provision accrual 684,319,062.49
Account receivable with L/C 58,219,960.55
Total 742,539,023.04
4) Account receivable with single minor amount but withdrawal single item bad debt provision: Nil
(2) Account receivable received of previous that being verified in this year: receivables 741,623.00
Yuan received from clients that verified in 2013
(3) Account receivable actually written-off in the Year: Nil
(4) Arrears of the shareholders holding more than 5% (including 5%) shares with voting rights of
the Company: Nil
199
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(5) The top five account receivable at year-end has RMB 296,570,928.38 in total, a 30.22% in total
account receivable.
(6) Account receivable of related parties
Proportion in
Related
Unit Amount total account
relationship
receivable
Nanjing Meiling Appliance Marketing Co., Ltd. Subsidiary 78,929,932.23 8.04%
Jiangxi Meiling Appliance Co., Ld. Subsidiary 64,443,228.10 6.57%
Beijing Meiling Appliance Marketing Co., Ltd Subsidiary 60,572,036.73 6.17%
Chengdu Meiling Appliance Marketing Co., Ltd. Subsidiary 53,499,015.90 5.45%
Guangzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 39,126,715.42 3.99%
Shanghai Meiling Appliance Marketing Co., Ltd. Subsidiary 37,929,826.42 3.87%
Chongqing Meiling Appliance Marketing Co., Ltd. Subsidiary 30,336,888.33 3.09%
Guangxi Meiling Household Electrics Co., Ltd Joint venture 26,940,207.08 2.75%
Nanchang Meiling Appliance Marketing Co., Ltd.( Subsidiary 24,984,723.82 2.55%
Tianjin Meiling Appliance Marketing Co., Ltd. Subsidiary 23,838,551.73 2.43%
Xi’an Meiling Appliance Marketing Co., Ltd Subsidiary 23,136,054.76 2.36%
Hanzhou Meiling Appliance Marketing Co., Ltd Subsidiary 21,874,936.58 2.23%
Taiyuan Meiling Appliance Marketing Co., Ltd Subsidiary 20,527,686.09 2.09%
Zhengzhou Meiling Appliance Marketing Co., Ltd Subsidiary 20,039,484.75 2.04%
Harbin Meiling Appliance Marketing Co., Ltd. Subsidiary 19,220,690.53 1.96%
Changchun Meiling Appliance Marketing Co., Ltd. Subsidiary 18,242,334.31 1.86%
Wuhan Meiling Appliance Marketing Co., Ltd Subsidiary 17,090,018.51 1.74%
Guiyang Meiling Appliance Marketing Co., Ltd Subsidiary 14,427,260.76 1.47%
Kunming Meiling Appliance Marketing Co., Ltd Subsidiary 14,302,793.30 1.46%
Nantong Meiling Appliance Marketing Co., Ltd Subsidiary 13,638,885.02 1.39%
Fuzhou Meiling Appliance Marketing Co., Ltd. Subsidiary 9,737,500.85 0.99%
Jinzhou Meiling Appliance Marketing Co., Ltd Subsidiary 9,503,946.98 0.97%
Shenyang Meiling Appliance Marketing Co., Ltd Subsidiary 8,924,379.14 0.91%
Urumchi Meiling Appliance Marketing Co., Ltd Subsidiary 6,947,433.77 0.71%
Hefei Meiling White Goods Marketing Co., Ltd. Subsidiary 5,805,703.86 0.59%
Jinan Meiling Appliance Marketing Co., Ltd Subsidiary 5,469,603.12 0.56%
Under same
Changhong Electric(Australia) 4,106,787.65 0.42%
control
Hengyang Meiling Appliance Marketing Co., Ltd. Subsidiary 3,817,065.07 0.39%
Wuhu Meiling Appliance Marketing Co., Ltd. Subsidiary 3,743,288.25 0.38%
CHANGHONG RUBA TRADING COMPANY Subsidiary 2,512,695.15 0.26%
Neijiang Meiling Appliance Marketing Co., Ltd Subsidiary 617,883.65 0.06%
Hohhot Meiling Appliance Marketing Co., Ltd. Subsidiary 18,543.63 0.00%
Meiling Equator Appliance (Hefei) Co., Ltd. Subsidiary 6,481.00 0.00%
200
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Proportion in
Related
Unit Amount total account
relationship
receivable
Mianyang Meiling Software Technology Co., Ltd. Subsidiary 6,480.00 0.00%
Hefei Meiling Sole Energy Technology Co., Ltd. Joint venture 50,010.80 0.01%
Total 684,369,073.29 69.74%
(7) Balance of accounts receivable in foreign currency
Period-end Period-begin
currency Original Exchange Original Exchange
RMB converted RMB converted
currency rate currency rate
USD 31,454,134.26 6.1528 193,530,997.28 21,690,745.23 6.0969 132,246,304.59
EUR - -
AUD 707,286.38 5.8064 4,106,787.65 1,141,705.80 5.4301 6,199,576.66
Total 197,637,784.93 138,445,881.25
(8) Account receivable de-recognized: Nil
2. Other account receivable
(1) Risk structure of other account receivable
Period-end
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Other account receivable with single significant amount and
withdrawal single item bad debt provision
Other account receivable withdrawal bad debt provision by
combination
Combination 1 6,487,058.46 13.85 1,572,504.38 24.24
Combination 2 40,215,571.98 85.89 - 0.00
Combination Subtotal 46,702,630.44 99.74 1,572,504.38 3.37
Other account receivable with single minor amount but
121,159.83 0.26 121,159.83 100.00
withdrawal single item bad debt provision
Total 46,823,790.27 100.00 1,693,664.21 3.62
Net value 45,130,126.06
(Continued)
Period-begin
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Other account receivable with single significant amount and
- - - -
withdrawal single item bad debt provision
Other account receivable withdrawal bad debt provision by
— — — —
combination
201
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Period-begin
Category Book balance Bad debt provision
Amount Ratio (%) Amount Ratio (%)
Combination 1 6,668,892.12 13.46 1,893,082.75 28.39
Combination 2 40,460,939.09 85.63 - -
Combination Subtotal 47,129,831.21 99.74 1,893,082.75 4.02
Other account receivable with single minor amount but
123,159.83 0.26 123,159.83 100.00
withdrawal single item bad debt provision
Total 47,252,991.04 100.00 2,016,242.58 4.27
Net value 45,236,748.46
1) Other account receivable with single significant amount and no withdrawal bad debt provision
single: Nil
2) Other account receivable with withdrawal bad debt provision by aging account for combination
1
Period-end Period-begin
Book Age Book balance Bad debt Book balance Bad debt
Amount Ratio (%) provision Amount Ratio (%) provision
Within 1 year 1,395,000.00 21.51 69,750.00 30,000.00 0.45 1,500.00
1-2 years 3,178,962.50 49.00 476,844.38 3,178,962.50 47.67 476,844.37
2-3 years 651,895.00 10.05 228,163.25 2,961,545.66 44.41 1,036,540.98
3-4- years 962,817.00 14.84 529,549.35 200,000.00 3.00 110,000.00
4-5- years 201,243.75 3.10 171,057.19 201,243.75 3.02 171,057.19
Over 5 years 97,140.21 1.50 97,140.21 97,140.21 1.46 97,140.21
Total 6,487,058.46 100.00 1,572,504.38 6,668,892.12 100.00 1,893,082.75
3) Other receivable without bad debt provision withdrawal in combination 2
Combination Book balance
Connected amount between related parties 37,480,592.72
Loans of employee’s pretty cash 2,734,979.26
Total 40,215,571.98
4) Other account receivable with single minor amount but withdrawal single item bad debt
provision at period-end
Bad debt Accrual
Other account receivable Book balance Reasons
provision proportion
Loans from resigned staffs 121,159.83 121,159.83 100% Unable to collected
(2)Other account receivable of previous years that have been verified recovered in this year: Nil
(3) Switch-back of bad debt provision for other receivable in this year: Nil
202
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
(4) Other account receivable charge off in this year: Nil
(5)Areas from shareholders’ unit with over 5 percent (5 percent included) voting rights held at
year-end of the other receivable: Nil
(6) Top 5 other account receivable has RMB 39,874,903.66 in total, a 85.16% in total account
receivable at period-end
(7) Other account receivable from related parties
Item Period-end Period-begin
Hefei Meiling Appliance Marketing Co., Ltd 34,474,421.66 34,023,106.71
Hefei Meiling Nonferrous Metal Products Co.,
66340.32 -
Ltd
Hefei Meiling Packing Products Co., Ltd 118927.27 -
Hefei Meiling Group Holding Co., Ltd. 66849.23 -
Jiangxi Meiling Appliance Co., Ld. 264,079.50 667,047.98
Mianyang Meiling Refrigeration Co., Ltd. 154,456.92 2,060,370.29
Zhongke Meiling Cryogenic Technology Co., Ltd. 2,288,832.00 1,307,904.00
Mianyang Meiling Software Technology Co., Ltd. 46,685.82 -
Total 37,480,592.72 38,058,428.98
(8) Account receivable denominated in foreign currency: Nil
(9) Other receivable de-recognized: Nil
3. Long-term equity investments
(1)Classification of long-term equity investments
Item Period-end Period-begin
Long-term equity investment calculated by cost method 825,298,087.68 784,348,087.68
Long-term equity investment calculated by equity method 12,436,687.21 12,531,807.91
Total of long-term equity investment 837,734,774.89 796,879,895.59
Less: provision for impairment of long-term equity investment - -
Value of long-term equity investment 837,734,774.89 796,879,895.59
(2)Long-term equity investments calculated by cost method and equity method
Share Voting
Increase Decrease Cash
holdin right Amount at Amount at
Invested unit Initial amount during the during the dividend for
g ratio ratio period-begin period -end
period period this period
(%) (%)
Calculation by
cost method
Zhongke Meiling
Cryogenic
70.00 70.00 42,000,000.00 42,000,000.00 42,000,000.00
Technology Co.,
Ltd.
203
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Share Voting
Increase Decrease Cash
holdin right Amount at Amount at
Invested unit Initial amount during the during the dividend for
g ratio ratio period-begin period -end
period period this period
(%) (%)
Mianyang
Meiling
95.00 100.00 45,000,000.00 95,000,000.00 95,000,000.00
Refrigeration Co.,
Ltd.
Hefei Meiling
Appliance
99.82 100.00 9,900,000.00 54,900,000.00 54,900,000.00
Marketing Co.,
Ltd
Sichuan
Changhong Air
100.00 100.00 305,600,437.79 305,600,437.79 305,600,437.79
Conditioner Co.,
Ltd.
Zhongshan
Changhong 90.00 90.00 76,256,419.37 76,256,419.37 36,000,000.00 112,256,419.37
Electric Co., LTD
Huishang Bank
0.0972 0.0972 5,000,000.00 5,000,000.00 5,000,000.00
Co., 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 100.00 100.00 113,630,000.00 113,630,000.00 113,630,000.00
Co., Ltd.
Jiangxi Meiling
Appliance Co., 98.75 100.00 79,000,000.00 79,000,000.00 79,000,000.00
Ld.
Mianyang
Meiling Software
99.00 100.00 4,950,000.00 - 4,950,000.00 4,950,000.00
Technology Co.,
Ltd.
Subtotal 706,392,457.16 784,348,087.68 40,950,000.00 - 825,298,087.68
Calculation by
equity method
Hefei Xingmei
Assets
48.28 48.28 12,094,369.48 12,531,807.91 95,120.70 12,436,687.21
Management Co.,
Ltd.
Subtotal 12,094,369.48 12,531,807.91 95,120.70 12,436,687.21
Total 718,486,826.64 796,879,895.59 40,950,000.00 95,120.70 837,734,774.89
(3)Investment in associates
Operating
Total assts at Total liability Total net assets Net profit of
Invested unit income this
period-end at period -end at period -end this year
year
204
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Operating
Total assts at Total liability Total net assets Net profit of
Invested unit income this
period-end at period -end at period -end this year
year
Hefei Xingmei Assets
29,529,519.86 1,605,077.14 27,924,442.72 859,871.00 -197,018.85
Management Co., Ltd.
4. Operation income and operation cost
Item Current Period Last Period
Main business income 3,059,634,817.32 3,327,862,943.99
Other business income 531,934,442.89 501,858,955.15
Total 3,591,569,260.21 3,829,721,899.14
Main business cost 2,513,663,820.31 2,729,442,428.96
Other business cost 521,788,934.54 491,984,084.15
Total 3,035,452,754.85 3,221,426,513.11
(1) Main operation income- classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Main business
Refrigerator and
2,987,030,170.25 2,454,217,576.77 3,267,534,599.48 2,677,322,687.43
freezer
Washing machine 72,604,647.07 59,446,243.54 60,328,344.51 52,119,741.53
Other - - - -
Total 3,059,634,817.32 2,513,663,820.31 3,327,862,943.99 2,729,442,428.96
(2) Main business income- classified according to region
Current Period Last Period
Regions
Operation income Operation cost Operation income Operation cost
Domestic income 2,407,004,655.36 1,923,094,296.29 2,786,757,896.82 2,214,865,555.59
Export income 652,630,161.96 590,569,524.02 541,105,047.17 514,576,873.37
Total 3,059,634,817.32 2,513,663,820.31 3,327,862,943.99 2,729,442,428.96
(3) Top five clients of the Company owe income in sales of RMB 675,431,966.16, an 18.81% in
total operation income.
5. Investment income
(1) Sources of investment income
Item Current Period Last Period
Long-term equity investment income by cost method - 1,073,757.30
Long-term equity investment income by equity method -95,120.70 211,404.54
Investment income from disposal of long-term equity investment
205
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Total -95,120.70 1,285,161.84
(2)Long-term equity investment income by cost method
Item Current Period Last Period
Huishang Bank Co., Ltd. - 1,073,757.30
(3)Long-term equity investment income by equity method
Item Current Period Last Period
Hefei Xingmei Assets Management Co., Ltd. -95,120.70 211,404.54
6. Supplementary information for cash flow statement of parent company
Item Current Period Last Period
1. Adjust net profit to cash flow for operational activities:
Net profit 65,756,028.28 98,531,870.35
Add: provision for depreciation of assets 42,129,575.68 2,555,031.25
Depreciation of fixed assets, consumption of oil gas assets and
43,299,365.46 42,442,072.93
depreciation of productive biological assets
Amortization of intangible assets 5,425,051.12 5,741,858.39
Amortization of long-term retained expense -
Loss from disposal of fixed assets, intangible assets and other long term
-251,917.35 2,727,898.46
assets (gain is listed with ―-‖)
Loss from discarding fixed assets as useless (gain is listed with ―-‖) -
Loss from change of fair value(gain is listed with ―-‖) -
Financial expense (gain is listed with ―-‖) -29,316,071.18 -10,444,310.31
Investment loss (gain is listed with ―-‖) -1,285,161.84
Decrease of deferred income tax assets (increase is listed with ―-‖) -4,102,152.61 2,360,925.05
Increase of deferred income tax liabilities (decrease is listed with ―-‖) -
Decrease of inventories (increase is listed with ―-‖) -165,102,617.70 24,083,024.29
Decrease of operational accounts receivable (increase is listed with ―-‖) -270,996,445.31 -602,061,581.16
Increase of operational accounts payable (decrease is listed with ―-‖) 75,507,676.50 435,940,665.35
Others -
Net cash flow arising from operation activities -237,651,507.11 592,292.76
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 2,431,434,632.54 1,710,526,818.81
Less: Balance of cash at period-begin 1,996,577,625.49 1,235,992,818.90
Add: Balance of cash equivalent at period-end
206
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Less: Balance of cash equivalent at period-begin
Net increase in cash and cash equivalent 434,857,007.05 474,533,999.91
XVI. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 11 August 2014.
207
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Supplementary information for financial statement
(I) Non-operational gains and losses for this year
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:
Item Current Period Last Period Explanation
See
Gains and losses from disposal of non-current assets 915,066.83 -3,166,097.14 non-operation
expenditure
Tax refund or mitigate due to examination-and-approval beyond power
-
or without official approval document or accident
See
Government subsidy recorded in current gains and losses 9,753,687.37 8,284,145.67
non-operation
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
No need to
Gains and losses from debt restructuring 71,412.91 -
paid
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 -
See
Other non-operating income and expenditure except for the
6,844,812.13 435,291.84 non-operation
aforementioned ones
expenditure
208
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period Explanation
Other gains and losses items complying with definition for non-current
-
gains and losses
Subtotal 17,584,979.24 5,553,340.37
Affect on income tax 2,114,000.60 235,081.59
Affect on minority equity(after taxation) 22,627.92 267,380.74
Total 15,448,350.72 5,050,878.04
(II) Return on equity and earnings per share
In accordance with requirement of the No. 9 Rule of Information Disclosure Compiling of Public Listed
Companies: Calculation and Disclosure of Return on Equity and Earnings per Share (revised in 2010), the
weighted average return on equity, basic earnings per share and diluted earnings per share of the Company in
the Period are as follow:
Earnings per share
Weighted average return on
Profit during the report period Basic earnings per Diluted earnings per
equity
share share
Net profit attributable to shareholders of
4.64% 0.2083 0.2083
parent company
Net profit attributable to shareholders of
parent company after deduction of 4.19% 0.1881 0.1881
non-recurring gains and losses
(III) Abnormalities in main financial statement items and reasons for changes
1. Items of consolidated balance sheet with major changes compare with that of year-beginning
Item Period-end Opening amount Changes ratio Note
Account receivable 1,516,249,176.95 855,264,087.13 77.28% 1
Development expenditure 16,299,052.77 9,516,070.34 71.28% 2
Short-term loans 858,594,659.12 66,433,079.86 1192.42% 3
Wages payable 109,744,541.19 168,217,307.27 -34.76% 4
Taxes payable 134,260,368.85 -4,920,046.33 - 5
Other payables 1,237,932,500.14 914,983,315.18 35.30% 6
Non-current liability due
61,123,985.90 119,256,114.30 -48.75% 7
within one year
Translation reserve -1,347,759.88 -1,939,397.56 30.51% 8
Note 1: account receivable increased 77.28% over that of year beginning mainly because more sales in peak
season in the Period;
Note 2: Development expenditure increased 71.28% over that of year beginning mainly because more
investment in R&D in the Period;
Note 3: Short-term loans increased 1192.42% over that of year beginning mainly because short-term loans
209
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2014 to 30 June 2014
(Unless other wise specified, RMB for record in the Statement)
from parent company increased in the period;
Note 4: Wages payable decreased 34.76% over that of year beginning mainly because salary for employee
accrued in 2013 and year-end bonus have contributed in the Period;
Note 5: Taxes payable accelerate over that of year beginning mainly because sales increased and VAT
retained in the Period;
Note 6: Other payables increased 35.30% over that of year beginning mainly because the expenses occurred
without settled increased in the Period;
Note 7: Non-current liability due within one year decreased 48.75% over that of year beginning mainly
because part of the long-term loans due within one year was paid by parent company in Period;
Note 8: Translation reserve increased 30.51% over that of year beginning mainly due to the changes of
foreign currency from overseas subsidiary in the Period
2. Items of consolidated profit statement with major changes compare with that of last period:
Item Current Period Last Period Changes ratio Note
Loss from asset devaluation 30,071,923.98 22,012,431.67 36.61% 1
Investment income (loss listed with
-784,297.22 751,289.68 -204.39% 2
―-―)
Including: investment income of
-784,297.22 -593,240.24 -32.21% 3
affiliated enterprise and joint venture
Non-operation income 20,397,907.16 9,017,138.67 126.21% 4
Including: loss from disposal of
554,394.53 3,304,049.48 -83.22% 5
non-current assets
Note 1: Loss from asset devaluation increased 36.61% over that of last period, mainly because account
receivables in peak season sales increased in the Period;
Note 2: Investment income decreased 204.39% over that of last period; mainly because there was dividend
received from Huishang Bank in last period while no such income occurred in the Period;
Note 3: investment income of affiliated enterprise and joint venture decreased 32.21% over that of last period;
mainly because part of the affiliated enterprise deficit in the Period;
Note 4: Non-operation income increased 126.21% over that of last period, mainly because the contingent
liabilities compensation was received by parent company in the Period from Xingtai Holding;
Note 5: loss from disposal of non-current assets decreased 83.22% over that of last period; mainly because
disposal of non-current asset in the Period decreased
210
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2014
Section X. 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.
12 August 2014
211
