HEFEI MEILING CO., LTD Summary of Semi-Annual Report 2017
Stock Code: 000521, 200521 Notice No.: 2017-055
Short Form of the Stock: MEILING DIANQI, WANMEILING B
HEFEI MEILING CO., LTD
Summary of Semi-Annual Report 2017
1. Important Notice
(1)The summary of semi-annual report is excerpted from the full text of the semi-annual report. For the
details, investors should carefully read the full text of the semi-annual report published on Juchao
Information website (www.cninfo.com.cn) and Shenzhen Stock Exchange Website etc., appointed by CSRC.
(2) 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.
(3) All the directors attended the board meeting on deliberating the Report on site and by communication.
(4) Modified audit opinions notes
□ Applicable √ Not applicable
(5) Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the
semi-annual period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.
(6) Profit distribution for preferred shares approved by the Board
□Applicable √Not applicable
II. Company information
(1) Profile
MEILING DIANQI,
Short form for share Code for share 000521, 200521
WANMEILING B
Listing stock exchange Shenzhen Stock Exchange
Short form of the Stock
after changed (if N/A
applicable)
Contact person and ways Secretary of the Board Representative of Securities affairs
Name Li Xia Zhu Wenjie
No. 2163, Lianhua Road, Economic
No. 2163, Lianhua Road, Economic and
Office add. and Technology Development Zone,
Technology Development Zone, Hefei
Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
E-mail lixia@meiling.com wenjie.zhu@meiling.com
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HEFEI MEILING CO., LTD Summary of Semi-Annual Report 2017
(ii) Main financial data and financial index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Increase/decrease in
Current period Same period of last year
this report y-o-y
Operating income (RMB) 8,517,794,193.10 6,866,631,262.68 24.05%
Net profit attributable to shareholders
92,075,039.77 109,992,701.28 -16.29%
of the listed company(RMB)
Net profit attributable to shareholders
of the listed company after deducting 66,905,338.98 90,801,654.71 -26.32%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
484,230,697.91 871,689,504.89 -44.45%
activities(RMB)
Basic earnings per share (RMB/Share) 0.0881 0.1440 -38.82%
Diluted earnings per share
0.0881 0.1440 -38.82%
(RMB/Share)
1.33 percentage
Weighted average ROE 1.79% 3.12%
points down
Increase/decrease in
End of current period End of last period this report-end over
that of last period-end
Total assets (RMB) 16,689,509,751.32 12,507,567,310.84 33.44%
Net assets attributable to shareholder
5,119,376,181.33 5,095,160,291.91 0.48%
of listed company (RMB)
Note: the earnings per share calculated at same period of last year were based on total shares of 763,739,205,
and the Company offering 280,858,676 common shares (A-stock) by privately placement in October 2016, total
shares capital of the Company goes to 1,044,597,881 shares. Therefore, the earnings per shares calculated in the
period were based on total shares of 1,044,597,881.
(iii) Amount of shareholders of the Company and particulars about shares holding
In share
Total preference
shareholders with voting
Total common shareholders in
66,201 rights recovered at end of 0
reporting period-end
reporting period (if
applicable)
top 10 shares holding
Proportio Number of share
Amount of pledged/frozen
Nature of n of
Full name of Shareholders Shares held restricted shares
shareholder shares State of Amou
held
held share nt
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HEFEI MEILING CO., LTD Summary of Semi-Annual Report 2017
State-owned
Sichuan Changhong Electric Co., Ltd. 22.47% 234,705,968 69,877,638 -- --
legal person
Hefei Industry Investment Holding (Group) State-owned
4.58% 47,823,401 0 -- --
Co., Ltd. legal person
Changhong (Hong Kong) Trading Company Foreign legal
2.63% 27,465,397 0 -- --
Limited（note 1） person
Ping An Annuity Insurance Company of Domestic non
China, Ltd. – Ping An Pension Ruifu private state-owned 2.26% 23,613,595 23,613,595 -- --
placement No.1 Assest Management Products corporate
Domestic non
Golden Ergle- SPD-U Trust-U Trust JinYue
state-owned 2.26% 23,613,595 23,613,595 -- --
No.4 Collected Asset Trust Plan
corporate
Foreign natural
CAO SHENGCHUN 1.32% 13,823,183 0 -- --
person
Domestic non
Ping An UOB-Ping An Bank-Guohai
state-owned 1.20% 12,522,361 12,522,361 -- --
Securities Co., Ltd.
corporate
Domestic non
Ping An Bank – Ping An UOB Dingtai
state-owned 1.20% 12,522,361 12,522,361 -- --
Flexible Mix Stock Investment Fund
corporate
Caitong Fund- Ningbo Bank-Haitong Xingtai Domestic non
(Anhui) Emerging Industry Investment Fund state-owned 1.03% 10,733,452 10,733,452 -- --
(Limited Partnership) corporate
Domestic non
National Social Security Funds-504 state-owned 0.94% 9,838,998 9,838,998 -- --
corporate
Domestic non
Harvest Fund- Ping An Bank- Huaxia Asset
state-owned 0.94% 9,838,998 9,838,998 -- --
Management Co., Ltd.
corporate
Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the
wholly-owned subsidiary of Sichuan Changhong Electronic Co., Ltd.; there existed no
Explanation on associated
associated relationship or belong to the concerted actors as specified in the Measures
relationship among the aforesaid
for the Administration of Information Disclosure of Shareholder Equity Changes of
shareholders
Listed Companies among Sichuan Changhong Electronic Co., Ltd., Changhong (Hong
Kong) Trade Co., Ltd. and other top 8 shareholders; and top ten shareholders with
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HEFEI MEILING CO., LTD Summary of Semi-Annual Report 2017
unrestricted subscription;
" Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. " and " Ping An Bank – Ping
An UOB Dingtai Flexible Mix Stock Investment Fund " have subscribed the products
managed by Ping An Dahua Fund Management Co., Ltd. in the Company's non-public
offering of shares in 2016; "“National Social Security Funds-504 ”和“Harvest Fund-
Ping An Bank- Huaxia Asset Management Co., Ltd. ” have subscribed the products
managed by Harvest Fund Management Co., Ltd. in the Company's non-public offering
of shares in 2016. The company neither knows whether there is any association among
other shareholders, nor knows whether other shareholders belong to the persons acting
in concert that is stipulated in the “Administrative Measures on Information Disclosure
of Changes in Shareholding of Listed Companies”.
Explanation on common shareholders
Not applicable
involving margin business (if applicable)
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder
Sichuan Changhong-- Changhong (Hong Kong) Trading Company Limited, holds B-stock of the
Company as 27,465,397 shares, among which, 387,600 shares are held through Philip Securities
(H.K.) Co., Ltd.
(iv) Changes of controlling shareholder or actual controller
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No change of controlling shareholder in reporting period.
2. Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controller in reporting period.
(v) Total preferred shareholders and top 10 shares held by preferred shareholders
□ Applicable √ Not applicable
The Company has no preferred shareholders
(vi) Corporate bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange
and without due on the date when semi-annual report approved for released or fail to cash in full on
due: Nil
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HEFEI MEILING CO., LTD Summary of Semi-Annual Report 2017
III. Discussion and analysis of operation
(i) Operation status in the period
Investors are advised to read the full text of semi-annual report, and pay particular
attention to the following risk factors.
In the year of 2017, faced with the more intense competition in home appliance market and other objective
factors, the enterprise will have worse survival environment. In the future, the company will face the weak
macroeconomic growth, severe industry situation, intensifying competition, rising costs, new business models and
the impact of Internet era and other risks.
Does the Company need to comply with disclosure requirements of the special industry: No
1. Introduction
In the first half of 2017, under the strategic guidance of “Meiling Dream” and “Double Three One Core”, the
company insisted on the operating principle of “product leading, marketing force, manufacturing breakthrough,
mechanism protection”, overcame the negative factors such as weak increase in macro economy and continuous
decline in industry market with the joint efforts of all staff, the domestic refrigerator sales outperformed the
industry market, the e-commerce business greatly increased, the market position of export refrigerators (freezers)
has been consolidated; air conditioning industry had a rapid growth; washing machine rapidly developed; kitchen
and bath and small appliances also had a rapid growth. In first half of 2017, the Company has achieved operating
income of RMB 8.518 billion, an increase of 24.05% on a year-on-year basis; net profit attributable to the
parent company of RMB 92.075 million, a decrease of 16.29% on a year-on-year basis.
2. Main Business Analysis
(I) Overview
In first half of 2017, refrigerator and freezer business achieved revenue of approximately RMB 3.712
billion,5.71% increased on a y-o-y basis; air-conditioning business achieved revenue of approximately RMB
3.831 billion,48.55% up y-o-y; washing machine business achieve revenue around RMB 0.227 billion, with
year-on-year growth of 5.93 %; other business of small home appliance and kitchen & toilet products have
revenue approximately as RMB 0.363 billion with 9.94% up y-o-y. At the same time, revenue from exportation
gains RMB 2.12 billion, a y-o-y growth of 29.63%.
(2) Progress of the Company's development strategy and business plan during the
reporting period
During the reporting period, in accordance with the development strategy and 2017 operating principles, the
Company has deployed the annual business plan, arranged the production and management, and carried out the
following activities:
Product leading:
During the reporting period, the company continued to focus on “intelligent and variable frequency strategy”
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HEFEI MEILING CO., LTD Summary of Semi-Annual Report 2017
and carry out the product upgrading, in the first half year, the sales of intelligent refrigerator increased by 1.1
percent point compared with the same period of last year, and the sales of inverter refrigerator increased by 16.8
percent point compared with the same period of last year, both achieved the expected goal. In technical research,
the company adhered to the fundamental research upgrade of core technology, maintained the existing
technological superiority, expanded the innovation and upgrading in technology field, broke through the
differentiation, and led the industry benchmark.
Marketing force:
During the reporting period, the company's domestic refrigerator and washing machine sales outperformed
the industry market, the market position has been further consolidated and enhanced. From the offline market
sales, CMM’s data showed the retail sales of refrigerator industry declined by 1.23% on a year-on-year basis,
but the retail sales of the company's refrigerator rose by 2.17% on a year-on-year basis; the retail sales of
air-conditioning industry rose by 14.75% on a year-on-year basis, while the retail sales of the company's
air-conditioning rose by 8.86% on a year-on-year basis; the retail sales of washing machine industry rose by
0.25% on a year-on-year basis, while the retail sales of the company's washing machine greatly rose by 15.45% on
a year-on-year basis.
From the online sales, AVC (All View Cloud) data showed that the company’s online refrigerator and air
conditioning sales have further enlarged the results. Among them, the retail sales of refrigerator industry rose by
64.04% on a year-on-year basis, and the retail sales of the company’s refrigerator rose by 93.05% on a
year-on-year basis; the retail sales of air-conditioning industry rose by 128.79% on a year-on-year basis, while the
retail sales of the company’s air-conditioning rose by 91.95% on a year-on-year basis.
As for the export business, the company's refrigerator and air-conditioning product lines have continued to
maintain a rapid growth like a few years ago. According to the customs data and statistics, the amount of exports
of refrigerator industry rose by 19.75% on a year-on-year basis, and the company's amount of exports rose by
17.45% on a year-on-year basis; the amount of exports of air conditioning industry rose by 2.23% on a
year-on-year basis, while the amount of exports of the company's air conditioning rose by 15.87% on a
year-on-year basis, and achieved good development.
Manufacturing breakthrough:
During the reporting period, the intelligent manufacturing, efficient production line project in Jiangxi
Province, large refrigerator efficiency enhancing project, recruit upgrade projects and other projects advanced in
an orderly manner, which overall pulled the improvement of manufacturing efficiency.
Mechanism protection:
During the reporting period, the company further implemented the incentive mechanism to activate the team,
constantly explored the team potential and enhanced the competitiveness of the company by implementing the
medium and long term performance incentive plan and continuously promoting the operation activation plan and
other multilevel, multiform incentive sharing.
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HEFEI MEILING CO., LTD Summary of Semi-Annual Report 2017
In the talent mechanism, the company continued to promote the 100 people echelon project to select and train
all kinds of key employees; in the innovation mechanism, brought the innovative spirit and fault-tolerant
mechanism into the relevant management system; in the accountability mechanism, confirmed the main idea of
accountability system construction, sorted out the key and core system of main business process, and defined the
accountability subject and assess the specific objectives; in the benchmarking mechanism, 32 projects have been
proposed and promoted after assessment by establishing working mechanism during the reporting period.
(ii) Matters relevant to financial report
1. Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
√Applicable □Not applicable
The “Accounting Standards for Business Enterprises No.16- Government grants” promulgate in May 2017 from
Ministry of Finance come into force since 12 June 2017. According to the connection of the new rules, as for the
government grants dated 1 January 2017 under the name of the Company, will treat by prospective application.
The new government grants occurred from 1 January 2017 to the cut-in-date, will adjust in line with the aforesaid
rules.
2. Particulars about retroactive restatement on major correction for accounting errors in reporting
period
□ Applicable √ Not applicable
No particulars about retroactive restatement on major correction for accounting errors in reporting period.
(3) Particulars about the change of consolidation range compared with the financial report of last year
√ Applicable □Not applicable
The Company’s consolidated financial statement included 50 subsidiaries including Sichuan Changhong
Air-Conditioner Company Limited, Zhongshan Changhong Electric Company Limited, Zhongke Meiling
Cryognic Technology Company Limited and Guangdong Changhong Ridian Technology Co., Ltd., etc. As
compared to previous year, in the reporting period, Meiling Candy Washing Machine Company Limited,
Zhongshan Hongling Trade Company Limited and Guangzhou Changhong Trade Company Limited were newly
included in the consolidate statement; moreover, Xi’an Meizhilai Appliances Marketing Company Limited was
excluded due to liquidation in the period
Found more in “VII Change of Consolidate Statement” and VIII Equity in other main body carried in Section XI
Financial Report of the Semi-Annual Report 2017, released on 10 August 2017
Hefei Meiling Co., Ltd.
Chairman: Li Wei
10 August 2017
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