CHANGHONG MEILING CO., LTD.
THE THIRD QUARTERLY REPORT FOR 2019
October 2019
1
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Section I. Important Notes
Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred to
as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any
fictitious statements, misleading statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
Principal of the Company Mr. Wu Dinggang, Person in Charge of Accounting Works Mr. Pang Haitao and
Person in Charge of Accounting Organ (Accounting Officer) Mr. Yang Jun hereby confirm that the Financial
Report of the Third Quarterly Report is authentic, accurate and complete.
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Third quarterly report of 2019 has not been audited.
All directors of the Company are attended the Meeting for quarterly report deliberation.
2
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Section II Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Changes of this period-end
End of this period End of last period over same period-end of last
year
Total assets(RMB) 14,817,745,280.38 15,561,810,184.54 -4.78%
Net assets attributable to
shareholders of listed company 5,028,249,585.27 5,015,730,486.57 0.25%
(RMB)
Increase/decrease in
Increase/decrease in
Year-begin to end of comparison with
Current period comparison with same
the Period year-begin to
period of last year
Period-end of last year
Operating revenue (RMB) 3,907,875,881.65 -1.74% 13,041,038,562.59 -1.57%
Net profit attributable to
shareholders of the listed company 26,417,996.84 76.66% 80,752,019.41 23.03%
(RMB)
Net profit attributable to
shareholders of the listed company
8,955,796.33 274.85% 13,431,193.18 214.58%
after deducting non-recurring gains
and losses(RMB)
Net cash flow arising from
-- -- 201,226,091.90 -16.58%
operating activities(RMB)
Basic earnings per share
0.0253 76.66% 0.0773 23.03%
(RMB/Share)
Diluted earnings per share
0.0253 76.66% 0.0773 23.03%
(RMB/Share)
0.23 percentage points 0.30 percentage points
Weighted average ROE 0.53% 1.60%
up up
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Item Amount from year-begin to Note
3
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
end of the Period
Gains/losses from the disposal of non-current asset (including the Found more in “Income from assets
-4,436,536.97
write-off that accrued for impairment of assets) disposal”
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to Found more in “Other income” and
77,124,210.10
national standards, which are closely relevant to enterprise’s “Non-operation income”
business)
Except for the effective hedging business relevant with normal
operations of the Company, gains/losses from change of the fair
value for holding the trading financial assets, derivative financial
assets, trading financial liabilities and derivative financial Found more in “Gain/loss of changes
4,464,614.42
liability, as well as the investment income from disposing the in fair value”, “investment income”
trading financial assets, derivative financial assets, trading
financial liabilities, derivative financial liability and other
creditors’ investment
Switch-back of the receivables for separate impairment tests and
provision for impairment of contract assets 662,652.68 --
Other non-operation income and expenditure except for the Found more in “non-operation income
1,763,043.66
aforementioned items and expenditure”
Less: impact on income tax 11,543,274.56 --
Impact on minority shareholders’ equity (post-tax) 713,883.10 --
Total 67,320,826.23 --
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
The Company has no 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, in the period
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Number of common shareholders and preference shareholders with voting rights recovered and top ten
common shareholders
In shares
4
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Total preference shareholders
Total number of common shareholders with voting rights recovered at
64,377 0
at the end of report period end of reporting period (if
applicable)
Top ten shareholders
Number of share
Amount of
Proportion Amount of pledged/frozen
Nature of
Shareholder’s name of shares restricted shares
shareholder shares held
held State of
held Amount
share
State-owned legal
Sichuan Changhong Electric Co., Ltd. 23.79% 248,457,724 69,877,638 - -
person
Hefei Industrial Investment Holding State-owned legal
4.58% 47,823,401 - - -
(Group) Co., Ltd. person
CHANGHONG (HK) TRADING
Foreign legal person 2.59% 27,077,797 - - -
LIMITED
Foreign natural
CAO SHENGCHUN 1.41% 14,765,386 - - -
person
Caitong Fund- Ningbo Bank-Haitong Domestic
Xingtai (Anhui) Emerging Industry non-state-owned 1.03% 10,733,452 - - -
Investment Fund (Limited Partnership) legal person
Domestic
China Construction Bank -Huaxia
non-state-owned 0.67% 6,996,400 - - -
Zhongzheng Sichuan SOE reform ETF
legal person
Phillip Securities (Hong Kong) Limited Foreign legal person 0.60% 6,296,913 - - -
Domestic natural
Ma Guobin 0.56% 5,874,969 - - -
person
Domestic natural
Zheng Huiru 0.45% 4,680,000 - - -
person
China Securities Finance Corporation Domestic general
0.42% 4,362,500 - - -
Limited legal person
Particular about top ten shareholders with un-restrict shares held
Amount of unrestricted shares Type of shares
Shareholders’ name
held Type Amount
Sichuan Changhong Electric Co., Ltd. 178,580,086 RMB ordinary shares 178,580,086
Hefei Industrial Investment Holding
47,823,401 RMB ordinary shares 47,823,401
(Group) Co., Ltd.
CHANGHONG (HK) TRADING
27,077,797 Domestically listed foreign shares 27,077,797
LIMITED
5
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
CAO SHENGCHUN 14,765,386 Domestically listed foreign shares 14,765,386
Caitong Fund- Ningbo Bank-Haitong
Xingtai (Anhui) Emerging Industry 10,733,452 RMB ordinary shares 10,733,452
Investment Fund (Limited Partnership)
China Construction Bank -Huaxia
6,996,400 RMB ordinary shares 6,996,400
Zhongzheng Sichuan SOE reform ETF
Phillip Securities (Hong Kong) Limited 6,296,913 Domestically listed foreign shares 6,296,913
Ma Guobin 5,874,969 RMB ordinary shares 5,874,969
Zheng Huiru 4,680,000 RMB ordinary shares 4,680,000
China Securities Finance Corporation
4,362,500 RMB ordinary shares 4,362,500
Limited
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter
referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan
Changhong Electric Co., Ltd. (hereinafter referred to as Sichuan Changhong); except the
shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of
B-stock are also held through Phillip Securities (Hong Kong) Limited, the foregoing
shareholders constitute persons of uniform action. There existed no associated relationship
Explanation on associated relationship or belong to the concerted actors as specified in the Measures for the Administration of
or consistent actors among the aforesaid Information Disclosure of Shareholder Equity Changes of Listed Companies among
shareholders Sichuan Changhong, Hong Kong Changhong and other top 7 shareholders; “Caitong
Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund
(Limited Partnership) ” refers to the products of Caitong Fund Management Company
subscribe for privately placement of 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”.
As of 30th September 2019, among the top 10 common shareholders, Ma Guobin holds
Explanation on top ten common
5,874,969 shares of the Company through customer credit trading secured account of
shareholders involving margin business
Founder Securities Co., Ltd., and 0 shares hold through common securities account, thus
(if applicable)
5,874,969 shares of the Company are held in total
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
6
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons
√ Applicable □Not applicable
(i) Changes of items of balance sheet and cause analysis
In RMB
Item Closing balance Opening balance Changes Reasons
Tradable financial Change of the fair value of forward foreign
18,609,751.92 9,253,635.59 101.11%
assets exchange contract in the period
The account receivable from subsidiary
Account
2,206,388,200.30 1,673,362,136.29 31.85% Changhong Air-conditioner and Zhongshan
receivable
Changhong increased in the period
The account of equipment relocation are paid in
Account paid in
55,225,984.20 86,180,459.26 -35.92% advance from subsidiary Changhong
advance
Air-conditioner in the period
Other account Cash deposit for the engineering projects are paid
130,723,288.12 63,192,740.93 106.86%
receivable in the period
Investment real The investment real estate from subsidiary
97,231,072.87 46,846,507.41 107.55%
estate Changhong Air-conditioner increased in the period
Tradable financial Change of the fair value of forward foreign
18,131,337.32 55,586,666.70 -67.38%
liability exchange contract in the period
Account received The account received in advance from subsidiary
240,271,809.66 354,551,354.80 -32.23%
in advance Meiling Group declined in the period
VAT are paid by subsidiary Changhong
Taxes Payable 65,314,443.39 109,753,432.17 -40.49%
Air-conditioner and Meiling Group in the period
Non-current
The long-term loans due within one year are paid
liability due 300,000.00 273,682,737.85 -99.89%
by parent company in the period
within one year
The long-term loans from parent company
Long-term loans 301,280,000.00 1,920,000.00 15,591.67%
increased in the period
The deferred income tax liability recognize by
Deferred income
5,996,351.53 3,098,699.11 93.51% subsidiary Changhong Air-conditioner increased in
tax liability
the period
(ii) Changes of items of profit statement and cause analysis
In RMB
Same period of
Item Current Period Changes Reasons
last year
The exchange loss increased on a y-o-y basis in
Financial expenses -9,844,161.99 -33,207,231.05 70.36%
the period
7
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Income from fair Change of the fair value of forward foreign
43,185,470.53 -25,833,772.85 267.17%
value changes exchange contract in the period
The loss of forward exchange contract delivery
Investment income -38,327,115.65 20,726,039.38 -284.92%
increased from a year earlier
Income from the
investment for The income from investment for associated
1,251,855.70 -12,056,138.08 110.38%
associated enterprise enterprise increased on a y-o-y basis in the period
and joint venture
The financial assets impairment are listed under
Credit impairment
1,082,468.11 - - the item of “Credit impairment loss” for change of
loss
the accounting policy in the period
Income from assets
-4,436,536.97 3,476,687.51 -227.61% Losses of the assets disposal in the period
disposal
Relocation expenditure from subsidiary
Non-operation
3,776,106.23 60,249.87 6,167.41% Changhong Air-conditioner increased from a year
expenditure
earlier
Income tax expenses increased on a y-o-y basis in
Income tax expenses 36,397,055.33 25,015,797.92 45.50%
the period
Gains/losses of Mainly due to the year-on-year increase in losses
minority -11,984,976.39 196,132.62 -6,210.65% of some non-wholly-owned subsidiaries of the
shareholders company.
(iii) Changes of items of cash flow statement and cause analysis
In RMB
Same period of
Item Current Period Changes Reasons
last year
The export rebates received in the period
Refunds of taxes 280,384,080.90 455,080,647.00 -38.39%
declined on a y-o-y basis
Other cash received
The reversal of the restricted money declined in
concerning operating 125,280,221.18 234,806,474.37 -46.65%
the period
activities
Taxes paid 448,423,347.16 297,025,746.90 50.97% VAT paying increased on a y-o-y basis
Cash paid for
purchasing fixed
Fixed assets purchased in the period declined on
assets, intangible 266,302,834.52 436,847,276.96 -39.04%
a y-o-y basis
assets and other
long-term assets
Cash paid for The entrusted financial principal paid in the
1,981,000,000.00 3,020,000,001.00 -34.40%
investment period declined on a y-o-y basis
Other cash paid
The loss of forward exchange contract delivery
concerning investment 76,709,995.61 255,500.00 29,923.48%
increased from a year earlier
activities
Cash received for Investment from minority shares are received at
- 24,865,000.00 -100.00%
absorbing investment same period last year while no such amount
8
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
occurred in the period
Cash received by Borrowings received in the period declined on a
1,308,256,908.10 2,021,566,261.86 -35.28%
borrowing y-o-y basis
Other cash paid
The restriction for utilization of the financing
concerning financing 32,764,857.16 2,050,458.19 1,497.93%
guarantee increased on a y-o-y basis
activities
Influence on cash and
cash equivalents due Changes in foreign currency exchange rate in the
12,976,331.25 3,791,101.79 242.28%
to fluctuation in period
exchange rate
II. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable
(i) Particular about the process of the fund raised and investment of fund raised
In 2016, the Company carried out private placement of A-share with 1,569,999,998.84 Yuan raise in total. Net
amount raise as 1,540,732,722.76 Yuan after vary issuance costs (tax included) 29,267,276.08 Yuan deducted.
As approved at the 16th session of the 9th BOD, the 8th session of 9th supervisory committee and the 3rd
extraordinary meeting of the shareholder general meeting for 2018, being agreed by independent directors as well
as the no objection verification opinion required from sponsor institution, the Company was approved to invest in
such break-even financing products that are highly safe, in good liquidity and with a term of not more than one
year for a single product with the available raised proceeds under the maximum limit of 940 million Yuan. This
authorization shall be effective for a year since being approved at the general meeting of the Company.
The resolutions of the 20th session of 9th Board of Directors, the 11th session of 9th Supervisory Committee, and the
2018 Annual General Meeting of Shareholders passed and agreed the company to postpone the date of reaching
the expected usable status of the “Intelligent Manufacturing Construction Project” and the "Intelligent R&D
Capacity Building and Smart Appliance Technology New Product Development Project" in the 2016 non-public
offering to raise funds for investment projects to the end of December 2021.
The resolutions of the 24th session of 9th Board of Directors, the 13th session of the 9th Supervisory Committee,and
the 2nd Extraordinary General Meeting of 2019 passed and agreed the company to invest 120 million Yuan of the
unused raised funds of the sub-project “intelligent production line construction project for newly increasing
600,000 medium- and large-volume environmental protection and energy-saving freezer per year” of the
“Intelligent Manufacturing Construction Project”, which was the 2016 non-public offering to raise funds for
investment projects, into the “production base project (Phase II) for annual production capacity of 2 million
washing machines”, and agreed the company to terminate the implementation of the “Smart Life Project” and use
the project's remaining raised funds and the interest and other proceeds from wealth management to permanently
replenish the working capital. Up to now, the Company are strictly comply with the resolution of the shareholder
general meeting and relevant regulations in using the fund raised.
Ended as 30 September 2019, actually fund of raised used accumulative amounted as 1,107,781,648.76 Yuan in
total, balance of the account for fund raised counted as 544,831,331.56 Yuan (including interest income
9
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
accumulative amounted as 7,679,296.60 Yuan and income from financial product at expiration 73,238,685.81
Yuan, and the bank financial products of 517,000,000.00 Yuan purchased by the idle fund of raised)
Up to 30th September 2019, the Company accumulative used the fund raised in specific account amounted as
1,107,781,648.76 Yuan, the use of purpose including:
1. The intelligent construction (Hefei) has 133,425,464.48 Yuan in used;
2. The production base project (Phase II) for annual production capacity of 2 million washing machines have
1,761,561.00 Yuan paid actually with the self-owned funds, but not transfer out from the specific account of fund
raised, thus the fund raised for the project in specific fund raised account amounted as 0 Yuan.
3. Intelligent R & D capacity building and intelligent home appliances technology development project invested
352,661,186.36 Yuan accumulated;
4. The intelligent life project have 350,814,934.15 Yuan fund raised used in total (including the permanent
replenishment of working capital) (financial income 27,146,472.44 Yuan and interest income 3,668,461.71 Yuan
included), at the same time, on 26 July 2019 and 19 August, the rest fund raised and interest income of
305,813,334.15 Yuan in account for “ intelligent life project” have been withdrawal for supplementing the
working capital permanently. On 11 October 2019, the rest interest income of 29,712.17 Yuan in specific account
of the project have withdrawal by the Company and the account has been closed. Furthermore, the project’s
carrier for implementation - Changmei Technology Co., Ltd. has in the progress of liquidation.
5. Supplementation of the working capital amounted as 270,880,063.77 Yuan (including saving interest
147,341.01 Yuan)
(ii) Progress of shares buy-back
□ Applicable √ Not applicable
(iii) Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
(IV) progress of the annual performance incentive fund
The “Implementation Plan of Annual Performance Incentive Fund” has been deliberated and approved by the
16th session of 7th Board and 2nd extraordinary general meeting 2012 on 9 August 2012 and 28 August 2012.
Details of the aforesaid event can be found in the announcement (No.: 2012-028 and No.: 2012-035) released on
appointed media Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) dated 10 August 2012 and 29 August 2012.
1. Implementation about 2012, 2013, 2014 and 2016 performance incentive fund provision and distribution
plan
See details in "Implementation of the company's annual incentive fund" in "XI Implementation of the company's
10
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
stock incentive plan, employee stock ownership plan, or other employee incentive measures" in "Section V
Significant Events" of the company's "2018 Annual Report" disclosed on March 29, 2019.
Up to the end of this reporting period, the company's stock purchased by some annual performance incentive
objects (non-directors, supervisors and senior management) for year of 2012, 2013 and 2014 with their granted
incentive funds and self-own funds have been fully open for trading; the company's stock purchased by some
2016 annual performance incentive objects (non-directors, supervisors and senior management) with their granted
2016 incentive funds and self-own funds has been desterilized by 50% for term of holding for two years; see
below for the overall reducing holding-shares of some above-mentioned incentive objects. During the reporting
period, among the incentive objects, the incumbent director and deputy president Mr. Zhong Ming reducing
78,725 shares ( takes 0.0075% of the total shares of the Company) on 22 August 2019 via centralized bidding
system in Shenzhen Stock Exchange; other incumbent directors, supervisors and senior managements in incentive
objects are not reducing the shares for implementing the performance incentive plan of 2012, 2013, 2014 and
2016.
2. Share holding and reduction of the company’s performance incentive objects
As of September 30, 2019, all incentive objects held a total of 11,323,917 shares, accounting for 1.0841% of the
company’s general capital, of which 9,634,024 shares of A share, accounting for approximately 0.9223% of the
company’s general capital, 1,689,893 shares of B share, and accounting for about 0.1618% of the company’s
general capital. Some 2012, 2013, 2014 and 2016 annual performance incentive objects (not directors, supervisors
or senior management) have totally reduced share of 5,189,898 shares from September 2014 to the end of the this
reporting period, accounting for approximately 0.4968% of the company’s general capital, and reduced holding of
352,563 shares from July to September 2019.
(V) Transaction with Sichuan Changhong Group Finance Co., Ltd.
The resolution of the 34th session of 8th board of directors on August 9, 2017 and the second extraordinary general
meeting of 2017 on September 12, 2017 approved and agreed the company to continue carry out the financial
service cooperation with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred to as “Changhong
Finance Company”) and sign a triennial Financial Service Agreement, It is agreed that the maximum deposit
balance (including accrued interest and handling fees) and the highest principal and interest of outstanding loan
the Company in any finance company within the three-year validity period from the effective date of the new
agreement shall be adjusted to not exceed RMB 3.8 billion per day. In accordance with the agreement, Changhong
Finance Company shall provide a series of financial services such as deposit and loan in its business scope
according to the requirements of the Company and its subsidiaries.
On 10 December 2018 and 27 December 2018, deliberated and approved by the 17th session of 9th BOD and 4th
Extraordinary shareholders general meeting of 2018, the related transactions of financial service with Changhong
Finance between the Company and controlling subsidiary for year of 2019 including: the maximum balance in
Changhong Finance Company (including accrual interest and handling charges) will not be over 3.8 billion Yuan
everyday, the maximum outstanding loan principal and interest shall not exceed 3.8 billion Yuan; the line of credit
to the Company and subordinate subsidiary from Changhong Finance will not exceed 6 billion Yuan; the upper
limit of notes for business shall not exceed 3 billion Yuan and the upper limit of bill discount business shall not
11
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
exceed 3 billion Yuan. The related transaction with Changhong Finance Company from beginning of the year to
end of the period including:
Up to 30 September 2019, the Company and its subsidiaries have opened financial business as savings, note
drawing and notes discounted with Changhong Finance Company. The Company and its subordinate company
owns 2,580,645,538.16 Yuan savings in Changhong Finance Company, takes 23.16% of the deposit taking balance
in Changhong Finance Company without 30% occupied, balance of notes drawing at period-end was
1,129,785,016.07 Yuan and balance of notes discounted outstanding as 749,980,883.61 Yuan. More details are:
CNY/ RMB
Interest and
Item Opening balance Current increased Current decreased Ending balance handling charge
received/paid
I. Savings in
Changhong Group 3,119,117,207.91 25,096,857,470.56 25,635,329,140.31 2,580,645,538.16 77,721,913.52
Finance Company
II. Borrowings
from Changhong
Group Finance
Company
1.Short-term loans
2.Long-term loans
III. Other
financial business
1.notes drawing 819,806,514.07 1,620,131,958.33 1,310,153,456.33 1,129,785,016.07 647,336.38
2.notes discounted 772,233,395.98 1,097,863,492.58 1,120,116,004.95 749,980,883.61 14,376,818.54
(VI) Other significant events
Date for Information index for temporary report
Overview
disclosure disclosure
Mr. Wu Dinggang, the former president of the company, applied for
resignation as the president of the company due to changes in his personal
Juchao Website: http://www.cninfo.com.cn
work, but he continues to serve as the vice-president of the company, a 2019-1-12
(No.: 2019-001)
member of the strategy committee of the board of directors, and a member of
the remuneration and appraisal committee.
After the resolution of the board of directors of the company, it’s agreed to
authorize Mr. Kou Huameng, the director and vice president of the company,
Juchao Website: http://www.cninfo.com.cn
to act on the president’s behalf, the term is from the effective date of the board 2019-1-12
(No.: 2019-002)
resolution, i.e. January 11, 2019, to the date on which the board of directors
engages a new president.
12
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
On January 14, 2019, the company received a Notification Letter of Caitong
Fund Management Co., Ltd. About the Progress of Shareholding Reduction
Plan of Changhong Meiling Co., Ltd. from Caitong Fund Management Co.,
Ltd. (hereinafter referred to as “Caitong Fund”) that held more than 5% of the Juchao Website: http://www.cninfo.com.cn
2019-1-15
company’s shares, Caitong Fund reduced its holdings of the company’s shares (No.: 2019-003)
of 12,160,298 shares in total by centralized bidding transactions or block
trading from October 18, 2018 to January 13, 2019, accounting for 1.1641%
of the company's total share capital.
The resolutions of Board of Directors, the Board of Supervisors and General
Meeting of passed and agreed the company to provide credit guarantees of Juchao Website: http://www.cninfo.com.cn
2019-1-30
2.98 billion yuan in total for its wholly-owned and controlled subsidiaries in (No.: 2019-004, No.: 2019-005, No.:
2019-2-14
2019, the guarantee period is one year for the newly increased guarantee 2019-006, No.: 2019-008, No.: 2019-010 and
2019-2-23
amount for the current year and the amount of renewal insurance during the No.: 2019-012)
year.
The resolution of the Board of Directors of the Company passed and agreed
Juchao Website: http://www.cninfo.com.cn
the company to apply for a special credit line of up to 300 million yuan in the 2019-1-30
(No.: 2019-004, No.: 2019-007)
bank notes pool to Hefei Branch of China Everbright Bank Co., Ltd.
On February 13, 2019, the company received the “Short Form Report on
Changes in Equity of Changhong Meiling Co., Ltd.” from Caitong Fund,
Caitong Fund and its subordinate assets management plan reduced its holdings
of the shares of Changhong Meiling of 2,600,729 shares in total by centralized
Juchao Website: http://www.cninfo.com.cn
bidding transactions from January 14, 2019 to February 12, 2019, totally 2019-2-14
(No.: 2019-011)
8,115,894.30 Yuan reduced, accounting for 0.25% of the company's total share
capital. After this equity change, Caitong Fund(presenting the assets
management plan on behalf) holds 52,229,844 shares of Changhong Meiling,
accounting for 4.999995% of Changhong Meiling's total share capital.
On February 25, 2019, the company received the Notice of Sichuan
Changhong Electric Co., Ltd. and its Concerted Action Person
CHANGHONG (HK) TRADING LIMITED, Ltd. to Increase the
Shareholding of Changhong Meiling Co., Ltd. and the Equity Changes
(hereinafter referred to as “Notice”). Sichuan Changhong and its concerted
action person CHANGHONG (HK) TRADING LIMITED (hereinafter
referred to as “HK Changhong” or “concerted action person”) bought 2019-2-26 Juchao Website: http://www.cninfo.com.cn
16,231,024 shares of Changhong Meiling (including 13,751,756 shares of 2019-2-28 (No.: 2019-013)
Changhong Meiling A shares and 2,479,268 shares of Changhong Meiling B
shares) by bidding transaction method through the secondary market from
November 12, 2018 to February 25, 2019, accounting for 1.55% of
Changhong Meiling’s total share capital, consequently, the equity ratio of
Changhong Meiling held by Sichuan Changhong and concerted action person
accumulatively increased by 5% from September 2009 to February 2019.
In late March 2019, the Company received the "Notice of Civil Penalty" Juchao Website: http://www.cninfo.com.cn
2019-3-26
issued by U.S Department of Energy ("DOE", i.e. the US Department of (No.: 2019-014)
13
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Energy).
The resolutions of the Board of Directors, the Board of Supervisors, and the
Annual General Meeting of Shareholders passed and agreed the company to 2019-3-29、 Juchao Website: http://www.cninfo.com.cn
change the corresponding accounting policies according to the relevant 2019-4-27 (No.: 2019-015, No.: 2019-018, No.:
regulations and requirements of the Ministry of Finance so as to apply to the 2019-5-22 2019-031 and No.: 2019-035)
new regulations.
The resolutions of the Board of Directors and the Annual General Meeting of
Shareholders passed and agreed the company and its subsidiaries to carry out
forward foreign exchange fund trading business from July 1, 2019 to June 30, 2019-3-29 Juchao Website: http://www.cninfo.com.cn
2020, the balance of the business transaction does not exceed US$650 million 2019-4-27 (No.: 2019-015, No.: 2019-020, No.:
(mainly including US dollar, Australian dollar, Euro, and other foreign 2019-5-22 2019-031 and No.: 2019-035)
exchanges are all converted into US dollars), and the maximum
single-business delivery period is no more than one year.
In accordance with the resolutions of the Board and the Annual General
2019-3-29 Juchao Website: http://www.cninfo.com.cn
Meeting, it’s agreed to revise some of the provisions of the "Articles of
2019-4-27 (No.: 2019-015, No.: 2019-022, No.:
Association", "Rules of Procedure of the General Meeting of Shareholders",
2019-5-22 2019-031 and No.: 2019-035)
and “Rules of Procedure of the Board of Directors".
The resolution of the Board of Directors of the company passed and agreed the
company's subsidiaries, Zhongshan Changhong Electric Appliance Co., Ltd.,
Guangdong Changhong Technology Co., Ltd. and Hongyuan Geothermal Heat Juchao Website: http://www.cninfo.com.cn
2019-3-29
Pump Technology (Zhongshan) Co., Ltd. to donate a total of 130,000 yuan to (No.: 2019-015, No.: 2019-023)
Nantou Town People's Government of Zhongshan City to expand the Nantou
Town Central Primary School.
On April 15, 2019, the company received a Notification Letter of Caitong
Fund Management Co., Ltd. About the Progress of Shareholding Reduction
Plan of Changhong Meiling Co., Ltd. from Caitong Fund. Caitong Fund
reduced holding of 7,430,612 shares in The Company via collective bidding Juchao Website: http://www.cninfo.com.cn
2019-4-16
trading during the period from 13 Feb. 2019 to 13 April 2019, accounting for (No.: 2019-024)
0.7113% of the total share capital of the Company. After the reduction,
Caitong Fund still holds 44,799,232 shares of the company, accounting for
4.2887% of the company's total equity.
The resolutions of the Board of Directors passed and agreed the company to
implement the new financial instrument standards and change the relevant Juchao Website: http://www.cninfo.com.cn
2019-4-20
accounting policies in accordance with the relevant regulations and (No.: 2019-025, No.: 2019-028)
requirements of the Ministry of Finance.
The resolution of the Board of Directors of the company passed and agreed
Zhongke Meiling Cryogenics Co., Ltd. (hereinafter referred to as “Zhongke
Juchao Website: http://www.cninfo.com.cn
Meiling”), a holding subsidiary of the company, to invest 10 million yuan to 2019-4-20
(No.: 2019-025)
set up a wholly-owned subsidiary to engage in refrigeration engineering
equipment sales, design and other services.
14
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
The resolution of the Board of Directors passed and agreed the company to
withdraw some of the investment under the “Soochow-China Merchants
Bank-Donghui 135 Directional Asset Management Plan” issued by Soochow
Securities Co., Ltd. in advance, which was subscribed by the company at an Juchao Website: http://www.cninfo.com.cn
2019-4-20
earlier stage, that is, withdraw the principal of the face value of 50 million (No.: 2019-025)
yuan and the one-year investment income corresponding to the asset
management plan of about 16 million yuan (after deducting management fees,
custody fees and value-added tax) for the daily operation of the company.
Mr. Li Wei, the former president of the company, resigned as the president,
director, chairman of the strategy committee of the board of directors and
member of the nomination committee of the board of directors of the company
Juchao Website: http://www.cninfo.com.cn
for work reasons. At the same time, the resolutions of the board of directors of 2019-4-27
(No.: 2019-029, No.: 2019-030)
the company passed and agreed to engage Mr. Wu Dinggang as the company’s
chairman of the ninth board of directors for a term of office consistent with the
term of the current board of directors.
The resolutions of the Board of Directors and the Annual General Meeting of
Shareholders of the company passed and agreed the by-election of Mr. Zhong Juchao Website: http://www.cninfo.com.cn
2019-4-27
Ming as a non-independent director of the Ninth Board of Directors of the (No.: 2019-030, No.: 2019-031 and No.:
2019-5-22
Company, and his term of office is the same as that of the Ninth Board of 2019-035)
Directors.
Subordinate controlling subsidiary of the Company, have accumulated
2019-6-12 Juchao Website: http://www.cninfo.com.cn
received various kinds of government subsidies as 72,467,598.96 Yuan from 1
2019-8-13 (No.: 2019-036, No.: 2019-048)
Jan. 2019 to 13 August 2019.
The resolutions of the Board of Directors and the Annual General Meeting of
Shareholders passed and agreed the company to use the total share capital of
2019-3-29 Juchao Website: http://www.cninfo.com.cn
1,044,597,881 shares on December 31, 2018 as the base, and distribute a cash
2019-5-22 (No.: 2019-015, No.: 2019-035 and No.:
dividend of 0.6 yuan (including tax) per every 10 shares to all shareholders,
2019-6-18 2019-037)
who distributed cash dividends of 62,675,872.86 yuan (including tax) in total,
the above mentioned profit distribution plan has been completed.
On June 28, 2019, the company received the “Shareholding Reduction Plan”
from Mr. Zhong Ming, the company's director and vice president, Mr. Zhong
Ming planned to reduce his holdings of the Company’s shares of no more than
78,725 shares (not exceeding 0.0075% of the company's total share capital) by
centralized bidding transactions of the stock exchanges within six months after 2019-6-29 Juchao Website: http://www.cninfo.com.cn
15 trading days from the date of the announcement of the shareholding 2019-8-24 (No.: 2019-039, No.: 2019-055)
reduction plan due to his own capital arrangements. On 23 August 2019, the
Company received an Inform Letter of Share Reduction Plan Completion from
Mr. Zhong Ming. Up to 22 August 2019, Mr. Zhong Ming reduced 78,725
shares via centralized bidding system in Shenzhen Stock Exchange.
Being deliberated and approved by the Board, the bad debt of receivable
Juchao Website: http://www.cninfo.com.cn
12,604,521.25 Yuan that unable to collected by the Company and its 2019-8-16
(No.: 2019-049, No.: 2019-052)
subsidiaries are being verified
15
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
In order to further utilize the mature intelligent trading platform of Sichuan
Zhiyijia Network Technology Co., Ltd. (hereinafter referred to as Zhiyijia
Company), reducing the repeat investment for such platform construction, and
making use of the intelligent trading platform to giver full play to the
Company’s and controlling shareholder Sichuan Changhong’s collaborative
advantages in home appliance marketing, make it better to adapt to the market
competition and consumer behavior.Being approved by the resolution of the
2019-8-31
Board and shareholders general meeting, self-owned capital 29,087,040 Yuan Juchao Website: http://www.cninfo.com.cn
2019-9-6
of the Company (including: 20 million Yuan for registered capital and (No.: 2019-057, No.: 2019-058, No.:
2019-9-10
9,087,040 Yuan reckoned into capital reserves) is agreed to increase the capital 2019-059 and No.: 2019-067)
2019-9-27
for Zhiyijia Company. After capital increased, the shareholding ratio by the
Company and Sichuan Changhong for Zhiyijia Company comes to 50% each.
Meanwhile, it is agreed to increase the related trading amount predicted for
2019 to 803 million Yuan in total, occurred by the Company and its
controlling companies with Zhiyijia Company in aspect of good sales and
accepting services; it is estimated that the amount from related trading as good
sales and accepting services for year of 2020 was 8526 million Yuan in total.
To ensure the benefit and future development of the Meiling CANDY
Washing Machine Co., Ltd. (hereinafter referred to as Meiling CANDY) and
Juchao Website: http://www.cninfo.com.cn
its shareholders, through friendly consultation with the shareholder-Italy 2019-8-31
(No.: 2019-057)
Candy Hoover Group S.r.l., the subordinate controlling subsidiary Meiling
CANDY was agreed to be liquidated and canceled.
Being approved by the resolution of the Board and shareholders general
meeting, it is agreed to increased the capital to Changhong Finance Company
with 500 million Yuan each with self-owned capital together with Changhong
Juchao Website: http://www.cninfo.com.cn
Huayi Compressor Co., Ltd. (hereinafter referred to as Changhong Huayi). 2019-9-10
(No.: 2019-060, No.: 2019-061, No.:
Total capital comes to 1000 million Yuan. Based on the capital increase has 2019-9-27
2019-063 and No.: 2019-067)
involvement in the assessment results of shareholders’ equity, among the 500
million Yuan, 402,998,300 Yuan will reckon into registered capital while
97,001,700 Yuan reckon into capital reserves.
Being approved by resolution of the Board, controlling subsidiary Zhongke
Meiling agreed to implemented the initial offering of shares for year of 2019.
Juchao Website: http://www.cninfo.com.cn
The issuing target will subscribes in cash. It is agreed that the Company 2019-9-10
(No.: 2019-060, No.: 2019-062)
waives the rights of preferential subscription under the same conditions for the
issuance of shares.
Being approved by resolution of the Board, it is agreed to withdrawal parts of
the investment pre-subscribe under the target assets management plan No. 135
issued by Soochow Securities in advance, that is, principal 50 million Yuan Juchao Website: http://www.cninfo.com.cn
2019-9-10
and investment income approximately as 1,501,300 Yuan for holding the (No.: 2019-060)
principal (about more than 4 months) are collected in advance for routine
operation of the Company
III. Commitments that the company, shareholders, actual controller, offeror, directors,
16
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
supervisors, senior management or other related parties have fulfilled during the reporting
period and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior
management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end
of reporting period.
IV. Forecast of operation performance of 2019
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
V. Securities Investment
□ Applicable √ Not applicable
No security investment in Period.
VI. Trust financing
√ Applicable □Not applicable
In 10 thousand Yuan
Type Capital resources Amount for entrust Balance un-expired Overdue amount
Idle raised funds 90,400 51,700 0
Bank financing product
Own funds 30,000 30,000 0
Financial products of the
Own funds 20,000 10,000 0
broker
Total 140,400 91,700 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and
non-guaranteed:
√ Applicable □Not applicable
17
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
In 10 thousand Yuan
Amount
of
Wheth
reserve Whether
er
Refere for has
Sour Criteria Actual approv
Trustee nce Anticipated Actual devaluat entrust Summary of the items
Trustee ce of Start for collected ed by
institution r Type Amount End date Capital investment purpose annual income (if gains/losse ion of finance and related query index
type fund date fixing gains/losse legal
name rate of applicable) s in period withdra plan in (if applicable)
s reward s in period proced
return wing the
ure
(if future
(Y/N)
applicab
le)
Collected
5,000 in Investment for the second phase
Juchao Website
advance
Assets Self- Collected debt financing plan for year of (www.cninfo.com.cn)
SOOCHOW 5,000 own 2018-4 in Expiry Not
manage (No.: 2018-014, No.:
Securities Broker 20,000 advance 2018 that issued on CFAE under liquidati 8.28% 3,345.61 1,756.64 1,756.64 N/A Y applicab
ment fund -12 2018-015 , No.:
Co., Ltd. on le
plan s 2021-4-1 the name of Jinshiqi International 2019-025 and No.:
10,000
2 2019-060)
Holding Co., Ltd.
Chengdu Idle Structured deposit products, the
Floating 4.20% Not Juchao Website
Branch of raise 2018-1 2019-6-1
Bank income 48,000 structured derivatives link up with annual 4.20% 944.48 944.48 944.48 N/A Y applicab (www.cninfo.com.cn)
China Bohai fund 2-21 0
type yield le (No.: 2018-078)
Bank s 3M Libor
Investment of the central bank bill
Break-e Idle
in bank market, treasury bond, 3.95% Not Juchao Website
ven & raise 2018-1 2019-1-3
Hefei Branch corporate bonds, short-term
Bank income 23,000 annual 3.95% 87.12 85.80 85.80 N/A Y applicab (www.cninfo.com.cn)
of SPD Bank fund 2-26 0
protectio financing, medium-term bills, yield le (No.: 2018-080)
n s
inter-bank borrowing, inter-bank
18
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
deposits, bills or bill repurchase
etc.
The principal of funds raised by
this structured deposit is included
in the unified operations
management of the funds of China
Guangfa Bank. The proportion of
investment in money market
instruments (including but not
limited to bank deposits,
inter-bank lending, buy-back, etc.)
Idle ranges from 20% to 100%, and
Floating 3.90% Not Juchao Website
Hefei Branch raise 2018-1 2019-1-2 the proportion of bonds (including
Bank income 10,000 annual 3.90% 34.19 34.19 34.19 N/A Y applicab (www.cninfo.com.cn)
of CGB fund 2-27 8 but not limited to national debt,
type yield le (No.: 2018-080)
s central bank bills, financial bonds,
short-term financing bonds,
enterprise bonds, medium-term
notes, corporate bonds) and other
financial assets ranges from 0% to
80%, and the income is invested
in the financial derivatives linking
to the exchange rate of the US
dollar against the Hong Kong
dollar.
The product is mainly composed
Idle of risk-free assets investment and
Mianyang Break-e
3.75% Not Juchao Website
Branch of ven & raise 2018-1 2019-1-2 option trading. The product
China Bank income 10,000 annual 3.75% 31.85 31.25 31.25 N/A Y applicab (www.cninfo.com.cn)
fund 2-28 8 principal is invested in bank fixed
Everbright protectio
yield le (No.: 2018-081)
Bank n s time deposits, and the
corresponding application of
19
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
funds is based on the bank
deposits, and the income is linked
to the bank’s comprehensive
liability cost.
Takes the money collect by
structured deposit sales as
notional principal, and conducted
Anhui
Idle investment income and financial
Branch of Floating 4.25% Not Juchao Website
raise 2019-1
Bank of Bank income 22,400 2019-5-2 derivatives with the benchmark annual 4.25% 237.35 242.57 242.57 N/A Y applicab (www.cninfo.com.cn)
fund -31
Communicat type yield le (No.: 2019-009)
s comparison value of 3Mshibor
ion Co., Ltd.
linked with the counter party by
using the cost of above mentioned
principal
Investment of the central bank bill
in bank market, treasury bond,
Break-e Idle
corporate bonds, short-term 4.20% Not Juchao Website
ven & raise 2019-1
Hefei Branch
Bank income 10,000 2019-5-2 financing, medium-term bills, annual 4.20% 105.86 110.83 110.83 N/A Y applicab (www.cninfo.com.cn)
of SPD Bank fund -30
protectio inter-bank borrowing, inter-bank yield le (No.: 2019-009)
n s
deposits, bills or bill repurchase
etc.
The principal of funds raised by
Idle this structured deposit is included
Floating 4.25% Not Juchao Website
raise 2019-1 in the unified operations
Hefei Branch
Bank income 10,000 2019-5-2 annual 4.25% 107.12 107.12 107.12 N/A Y applicab (www.cninfo.com.cn)
of CGB fund -30 management of the funds of China
type yield le (No.: 2019-009)
s Guangfa Bank. The proportion of
investment in money market
20
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
instruments (including but not
limited to bank deposits,
inter-bank lending, buy-back, etc.)
ranges from 20% to 100%, and
the proportion of bonds (including
but not limited to national debt,
central bank bills, financial bonds,
short-term financing bonds,
enterprise bonds, medium-term
notes, corporate bonds) and other
financial assets ranges from 0% to
80%, and the income is invested
in the financial derivatives linking
to the exchange rate of the US
dollar against the Hong Kong
dollar.
Anhui
Idle Structured deposit products, the
Branch of Floating 4.10% Not Juchao Website
raise 2019-5 2019-7-1
Bank of Bank income 17,000 structured derivatives link up with annual 4.10% 114.58 114.58 114.58 N/A Y applicab (www.cninfo.com.cn)
fund -17 6
Communicat type yield le (No.: 2019-033)
s 3M Libor
ion Co., Ltd.
The corporate financial structural
Chengdu deposit under the Industrial Bank,
Idle
Branch of Floating 3.80% Not Juchao Website
raise 2019-5 2019-8-1 its annual fixed income rate is
Industrial Bank income 20,000 annual 3.80% 195.73 195.73 195.73 N/A Y applicab (www.cninfo.com.cn)
fund -17 9 2.01%, the floating earnings are
Bank Co., type yield le (No.: 2019-034)
s
Ltd. linked to the fluctuation of
Shanghai Jingshangwu
21
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
benchmark price of the Shanghai
Gold Exchange
Chengdu Idle Structured deposit products, the
Floating 3.55% Not Juchao Website
Branch of raise 2019-6 2019-7-2
Bank income 20,000 structured derivatives link up with annual 3.55% 62.25 62.25 62.25 N/A Y applicab (www.cninfo.com.cn)
China Bohai fund -20 2
type yield le (No.: 2019-038)
Bank s 3M Libor
Chengdu Idle Structured deposit products, the
Floating 3.85% Not Juchao Website
Branch of raise 2019-6 2019-12-
Bank income 26,000 structured derivatives link up with annual 3.85% 496.38 - - N/A Y applicab (www.cninfo.com.cn)
China Bohai fund -20 18
type yield le (No.: 2019-038)
Bank s 3M Libor
Huining
Road Branch
of Hefei
Idle Structured deposit products, the
Science & Floating 3.80% Not Juchao Website
raise 2019-7 2019-9-1
Technology Bank income 5,000 contract code for investing in gold annual 3.80% 32.27 32.27 32.27 N/A Y applicab (www.cninfo.com.cn)
fund -17 7
Rural type yield le (No.: 2019-046)
s futures: au1912
Commercial
Bank Co.,
Ltd.
Structured deposit products,
Hefei Branch mainly invested in inter-bank
of Shanghai Idle
Floating 3.80% Not Juchao Website
Pudong raise 2019-7 2019-9-2 central bills, treasury bonds,
Bank income 5,000 annual 3.80% 35.39 34.83 34.83 N/A Y applicab (www.cninfo.com.cn)
Developmen fund -18 4 corporate bonds, short-term
type yield le (No.: 2019-046)
t Bank Co., s
Ltd. financing, medium-term bills,
inter-bank lending, inter-bank
22
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
deposits, bonds or bill repurchase
etc., and option products with
linked interest rate.
Hefei Branch Idle Structured deposit products, all or
Floating 3.90% Not Juchao Website
of Hua Xia raise 2019-7 2019-9-1
Bank income 7,000 part of the interest on deposits is annual 3.90% 46.37 46.37 46.37 N/A Y applicab (www.cninfo.com.cn)
Bank Co., fund -19 9
type yield le (No.: 2019-046)
Ltd. s linked to the gold futures price
Structured deposit products, the
structural deposit refers to a
business products that enables the
Chengdu
Idle depositors to obtain higher returns
Branch of Floating 3.80% Not Juchao Website
raise 2019-8 2019-11-
Industrial Bank income 8,700 on basis of assuming certain risks annual 3.80% 85.14 - - N/A Y applicab (www.cninfo.com.cn)
fund -23 25
Bank Co., type yield le (No.: 2019-054)
s by linking with fluctuations in
Ltd.
interest rates, exchange rates,
indices or with the credit situation
of an entity.
Chengdu
Wuyang Self- Structured deposit products,
Floating 3.90% Not Juchao Website
Dadao own 2019-8 2019-11-
Bank income 30,000 invest through structured interest annual 3.90% 291.69 - - N/A Y applicab (www.cninfo.com.cn)
Branch of fund -26 25
type yield le (No.: 2019-056)
CITIC Bank s rate swaps
Co., Ltd.
Chengdu Bank Floating 12,000 Idle 2019-9 2019-12- Structured deposit products, the 3.95% 3.95% 118.75 - - N/A Y Not Juchao Website
23
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Branch of income raise -23 23 structured derivatives link up with annual applicab (www.cninfo.com.cn)
China Bohai type fund yield le (No.: 2019-065)
Bank s 3M Libor
Chengdu Idle Structured deposit products, the
Floating 3.95% Not Juchao Website
Branch of raise 2019-9 2019-12-
Bank income 5,000 structured derivatives link up with annual 3.95% 47.61 - - N/A Y applicab (www.cninfo.com.cn)
China Bohai fund -26 23
type yield le (No.: 2019-066)
Bank s 3M Libor
Total 309,100 -- -- -- -- -- -- 6,419.74 3,798.91 -- -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
VII. Particulars about derivatives investment
√ Applicable □Not applicable
In 10 thousand Yuan
Ratio of
Rela Amount investment
Whether Amount sold Amount of reserve
ted Investment purchased Investment amount at Actual
related Initial during the for devaluation of
Operator relati Type Start date End date amount at during the amount at period-end in gains/losses
trade or investment reporting withdrawing (if
onsh period-begin reporting period-end net assets of the in period
not period applicable)
ip period Company at
period-end
Forward
Financial foreign
N/A No 200,656.30 2017-9-29 2020-5-26 149,739.86 168,156.14 194,857.95 -- 130,709.04 25.49% -7,671.00
institutions exchange
contract
24
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Total 200,656.30 -- -- 149,739.86 168,156.14 194,857.95 -- 130,709.04 25.49% -7,671.00
Capital resource Self-owned capital
Lawsuits (if applicable) Not applicable
Disclosure date for approval from the
Board for investment of derivatives (if 2019-3-29
applicable)
Disclosure date for approval from board
of shareholders for investment of 2019-5-22
derivatives (if applicable)
1. Market risk: the changes in domestic and foreign economic situation may create a major volatility in exchange rate, future exchange business under
certain market risks. Forward exchange transaction business of the Company aims at lock-up the price in sale and purchase of foreign exchange, and
lowers the impact on profit from exchange fluctuations. The Company will closely following the changes in exchange rate, based on the target rate fix
by business, with the research and judgment in aspect of the trend in foreign exchange rate, determine the signature planning of agreement for forward
exchange transaction combine with prediction on receipt and payment as well as the tolerance capacity of changing price arising from rate fluctuation;
implement dynamic management on the business to guarantee a reasonable profit standards for the Company.
2. Liquidity risk: all of the foreign exchange funds trading are depend on reasonably estimated of the import-export business in future, satisfy the
Venture analysis and explanation on requirement of trading truth. In addition, forward exchange transaction operates in way of bank credit; there is no impact on the fund liquidity of the
control measures for derivatives holding Company.
in Period (including but not limited to 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange
market risk, liquidity risk, credit risks, contracts with contract price, which leads the risk of income uncertainty. So the Company chose the five major state-owned banks, joint –stock Chinese
operational risk and legal risk etc.) funded banks as Everbright and Industrial Bank, as well as the foreign funded banks as UOB, Overseas Chinese Bank and Bank of East Asia to conduct
the trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss may bring to the Company
is very low.
4. Operational risk: the money trading in forward exchange might causes relevant risks due to the incorrect operations by handling personnel, relevant
management mechanism has formulated by the Company, well-defined the operation procedure and duty officer in favor of preventing risk and risk
control.
5. Legal risk: legal disputes may arise from the un-clear trading agreement signed between the Company and banks in aspect of money trading in
forward exchange. The Company strengthens the review on relevant contracts in way of law, and chooses banks for cooperation with good credit status
25
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
in order to control the risk.
Particular about the changes of market In accordance with the Article 7 “Recognition of Fair Value” of “The Accounting Standards for Enterprises No. 22—Recognition and Measurement of
price or product’s fair value of invested Financial Instruments”, the Company determined and measure the fair value basically in line with the price provided or obtained from pricing services
derivatives in Period; as for analysis of such as banks. As for the calculation of fair value for derivatives, it mainly refers to the un-matured contract of forward exchange facilities that signed
the fair value of derivatives, disclosed with the banks in reporting period, and recognized as tradable financial assets or liabilities based on the difference of forward exchange facilities’
specific treatment methods and relevant contract quotation at period-end and forward rate. In the reporting period, the gains/losses of forward foreign exchange contract amounting to
hypothesis and parameter setting -7,671,000,000 Yuan
Explanation on major changes on specific
principle of accounting policy and
Not applicable
accounting calculation for derivatives in
Period, by comparing with last period
Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out its foreign exchange
forward deals in strict compliance with the standardized operation guidelines for listed issuer on main board (2015 amended) issued by Shenzhen Stock
Exchange, the Articles of Association, Authorization Management of the Company, Management System in relating to Foreign Exchange Forward Deals
of Changhong Meiling Co., Ltd., and these deals were conducted within the authorization scope under general meeting and board meeting. The
Specific opinions from independent
Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates
directs on derivative investment and risk
based on normal operating and production, which is relying on specific business operations with purpose of avoiding the preventing the risks in
controlling
exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the exchange risks exposed by import and export
business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rules and regulations and
relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially
minority shareholders, were not prejudiced.
26
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
VIII. Registration form for receiving research, communication and interview in the report
period
√ Applicable □Not applicable
Time Way Type Basic situation index of investigation
http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stoc
2019-2-26 Field research Institute
kCode=000521#
http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stoc
2019-7-2 Field research Institute
kCode=000521#
IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party.
27
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Changhong Meiling Co., Ltd.
In RMB
Item 2019-9-30 2018-12-31
Current assets:
Monetary funds 4,075,740,120.45 4,596,077,557.40
Settlement provisions
Capital lent
Tradable financial assets 18,609,751.92
Financial assets measured by fair value
and with variation reckoned into current 9,253,635.59
gains/losses
Derivative financial assets
Note receivable 2,024,194,132.60 2,387,830,887.74
Account receivable 2,206,388,200.30 1,670,988,644.76
Receivable financing
Accounts paid in advance 55,225,984.20 86,180,459.26
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 130,723,288.12 62,129,574.17
Including: Interest receivable 7,207,229.14 2,653,712.36
Dividend receivable
Buying back the sale of financial assets
Inventories 1,724,779,445.29 2,174,436,573.67
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 993,583,134.61 1,184,686,956.96
28
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Total current assets 11,229,244,057.49 12,171,584,289.55
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales 45,000,000.00
Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 67,054,112.07 61,869,440.55
Investment in other equity instrument
Other non-current financial assets 45,000,000.00
Investment real estate 97,231,072.87 46,846,507.41
Fixed assets 2,030,130,808.74 1,733,957,012.14
Construction in progress 343,617,526.44 464,558,352.60
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 829,624,319.88 817,579,958.94
Expense on Research and Development 82,477,256.77 108,210,966.60
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 93,366,126.12 112,203,656.75
Other non-current asset
Total non-current asset 3,588,501,222.89 3,390,225,894.99
Total assets 14,817,745,280.38 15,561,810,184.54
Current liabilities:
Short-term loans 1,684,437,250.66 2,336,373,929.62
Loan from central bank
Capital borrowed
Tradable financial liability 18,131,337.32
Financial liability measured by fair value
and with variation reckoned into current 55,586,666.70
gains/losses
Derivative financial liability
Note payable 3,739,952,714.58 3,727,754,399.60
29
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Account payable 2,297,568,758.71 2,282,174,981.38
Accounts received in advance 240,271,809.66 354,551,354.80
Contractual liability
Selling financial asset of repurchase
Absorbing deposit and inter-bank deposit
Security trading of agency
Security sales of agency
Wage payable 140,009,283.08 163,638,627.79
Taxes payable 65,314,443.39 109,753,432.17
Other account payable 788,933,166.42 660,320,360.26
Including: Interest payable 24,590,642.71 7,519,756.26
Dividend payable 3,579,491.94 17,317,286.45
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 300,000.00 273,682,737.85
Other current liabilities
Total current liabilities 8,974,918,763.82 9,963,836,490.17
Non-current liabilities:
Insurance contract reserve
Long-term loans 301,280,000.00 1,920,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 5,362,034.17 5,017,208.00
Long-term wages payable 14,353,019.26 19,073,101.29
Accrual liability 209,105,962.59 273,063,677.21
Deferred income 178,674,326.23 160,250,963.60
Deferred income tax liabilities 5,996,351.53 3,098,699.11
Other non-current liabilities
Total non-current liabilities 714,771,693.78 462,423,649.21
Total liabilities 9,689,690,457.60 10,426,260,139.38
30
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Owner’s equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,684,369,598.46 2,684,369,598.46
Less: Inventory shares
Other comprehensive income -19,943,038.08 -18,143,569.26
Reasonable reserve
Surplus public reserve 399,650,743.38 400,673,993.50
Provision of general risk
Retained profit 919,574,400.51 904,232,582.87
Total owner’ s equity attributable to parent
5,028,249,585.27 5,015,730,486.57
company
Minority interests 99,805,237.51 119,819,558.59
Total owner’ s equity 5,128,054,822.78 5,135,550,045.16
Total liabilities and owner’ s equity 14,817,745,280.38 15,561,810,184.54
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
Item 2019-9-30 2018-12-31
Current assets:
Monetary funds 2,533,546,477.86 2,897,004,041.87
Tradable financial assets 18,609,751.92
Financial assets measured by fair value
and with variation reckoned into current 9,253,635.59
gains/losses
Derivative financial assets
Note receivable 1,859,464,078.52 2,433,243,946.64
Account receivable 1,591,344,853.71 1,050,282,023.37
31
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Receivable financing
Accounts paid in advance 70,902,531.74 58,710,427.38
Other account receivable 120,202,355.79 182,744,033.52
Including: Interest receivable 4,375,967.13 2,653,712.36
Dividend receivable
Inventories 508,513,344.71 911,130,106.30
Contractual assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 932,869,684.42 1,113,987,528.70
Total current assets 7,635,453,078.67 8,656,355,743.37
Non-current assets:
Debt investment
Available-for-sale financial assets 45,000,000.00
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 1,673,298,342.35 1,731,109,903.70
Investment in other equity instrument
Other non-current financial assets 45,000,000.00
Investment real estate 7,401,135.77 7,618,550.16
Fixed assets 1,107,406,361.27 1,082,915,540.08
Construction in progress 119,090,090.55 125,064,106.10
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 490,249,642.28 462,425,105.64
Research and development costs 50,073,095.15 57,383,653.72
Goodwill
Long-term deferred expenses
Deferred income tax assets 69,879,472.55 78,357,299.17
Other non-current assets
Total non-current assets 3,562,398,139.92 3,589,874,158.57
32
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Total assets 11,197,851,218.59 12,246,229,901.94
Current liabilities:
Short-term borrowings 1,490,939,946.14 1,911,719,726.13
Tradable financial liability 15,587,041.20
Financial liability measured by fair value
and with variation reckoned into current 19,893,875.00
gains/losses
Derivative financial liability
Notes payable 1,914,046,194.51 2,001,442,110.63
Account payable 1,463,334,535.04 2,011,821,519.82
Accounts received in advance 136,130,911.42 105,815,140.88
Contractual liability
Wage payable 10,403,330.27 31,271,182.48
Taxes payable 15,279,477.06 21,992,129.58
Other accounts payable 405,280,969.94 427,293,961.56
Including: Interest payable 21,406,060.48 5,801,215.14
Dividend payable 3,579,491.94 17,317,286.45
Liability held for sale
Non-current liabilities due within one year 300,000.00 258,588,504.48
Other current liabilities
Total current liabilities 5,451,302,405.58 6,789,838,150.56
Non-current liabilities:
Long-term loans 301,280,000.00 1,920,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation
14,353,019.26 19,073,101.29
payable
Accrued liabilities 201,749,137.83 266,641,323.73
Deferred income 65,485,095.39 53,118,676.50
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 582,867,252.48 340,753,101.52
33
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Total liabilities 6,034,169,658.06 7,130,591,252.08
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 2,753,017,007.10 2,753,017,007.10
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 399,432,577.70 400,455,827.82
Retained profit 966,634,094.73 917,567,933.94
Total owner’s equity 5,163,681,560.53 5,115,638,649.86
Total liabilities and owner’s equity 11,197,851,218.59 12,246,229,901.94
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement (the period)
In RMB
Item Current Period Last Period
I. Total operating income 3,907,875,881.65 3,977,110,177.70
Including: Operating income 3,907,875,881.65 3,977,110,177.70
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 3,877,092,843.63 3,959,824,308.46
Including: Operating cost 3,120,899,900.24 3,205,017,999.93
Interest expense
Commission charge and commission
expense
Cash surrender value
34
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Net amount of expense of compensation
Net amount of withdrawal of insurance contract
reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 37,337,949.44 37,835,191.90
Sales expense 596,324,632.05 597,903,240.88
Administrative expense 75,991,835.54 79,376,133.44
R&D expense 74,045,366.13 59,438,945.43
Financial expense -27,506,839.77 -19,747,203.12
Including: Interest expenses 15,687,265.39 9,955,079.26
Interest income 38,289,853.37 24,694,760.73
Add: other income 44,877,387.39 19,485,556.40
Investment income (Loss is listed with “-”) -49,991,079.10 5,976,620.29
Including: Investment income on affiliated
10,073,856.02 3,618,239.73
company and joint venture
The termination of income recognition
for financial assets measured by amortized cost(Loss is
listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed
with “-”)
Income from change of fair value (Loss is
39,820,680.29 -7,042,861.74
listed with “-”)
Loss of credit impairment (Loss is listed with
-8,463,027.84
“-”)
Losses of devaluation of asset (Loss is listed
-14,086,299.07 -9,548,787.87
with “-”)
Income from assets disposal (Loss is listed
-3,498,765.23 192,920.94
with “-”)
III. Operating profit (Loss is listed with “-”) 39,441,934.46 26,349,317.26
Add: Non-operating income 3,218,452.87 1,361,065.01
Less: Non-operating expense 1,413,579.86 19,458.62
IV. Total profit (Loss is listed with “-”) 41,246,807.47 27,690,923.65
Less: Income tax expense 18,695,794.99 14,864,849.63
V. Net profit (Net loss is listed with “-”) 22,551,012.48 12,826,074.02
(i) Classify by business continuity
35
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
1.continuous operating net profit (net loss listed
22,551,012.48 12,826,074.02
with ‘-”)
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent
26,417,996.84 14,954,274.39
company
2.Minority shareholders’ gains and losses -3,866,984.36 -2,128,200.37
VI. Net after-tax of other comprehensive income 3,855,002.26 2,472,400.15
Net after-tax of other comprehensive income
2,611,878.24 1,782,853.09
attributable to owners of parent company
(I) Other comprehensive income items which will
not be reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(ii) Other comprehensive income items which
2,611,878.24 1,782,853.09
will be reclassified subsequently to profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-maturity investments
that re-classify to available-for-sale financial asset
6.Credit impairment provision for other
debt investment
7.Cash flow hedging reserve
8.Translation differences arising on
2,611,878.24 1,782,853.09
translation of foreign currency financial statements
36
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
9.Other
Net after-tax of other comprehensive income
1,243,124.02 689,547.06
attributable to minority shareholders
VII. Total comprehensive income 26,406,014.74 15,298,474.17
Total comprehensive income attributable to owners
29,029,875.08 16,737,127.48
of parent Company
Total comprehensive income attributable to
-2,623,860.34 -1,438,653.31
minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0253 0.0143
(ii) Diluted earnings per share 0.0253 0.0143
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0
Yuan achieved last period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company (the period)
In RMB
Item Current Period Last Period
I. Operating income 2,664,004,704.29 2,490,700,722.60
Less: Operating cost 2,406,427,108.32 2,148,535,254.62
Taxes and surcharge 21,743,329.48 14,469,596.73
Sales expenses 138,981,640.75 201,139,184.30
Administration expenses 32,418,153.86 36,055,056.31
R&D expenses 29,405,298.29 23,407,166.72
Financial expenses -6,393,797.98 -3,565,651.74
Including: interest expenses 11,934,462.19 13,724,471.67
Interest income 28,622,977.37 16,389,944.68
Add: other income 38,236,515.77 13,689,025.64
Investment income (Loss is listed with “-”) -3,964,727.76 19,003,123.97
Including: Investment income on affiliated
5,794,277.12 1,686,779.58
Company and joint venture
The termination of income recognition
37
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
for financial assets measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income (Loss is listed
with “-”)
Changing income of fair value (Loss is listed
6,592,242.68 -11,287,554.36
with “-”)
Loss of credit impairment (Loss is listed with
-2,371,132.58
“-”)
Losses of devaluation of asset (Loss is listed
-3,585,011.06 -10,616,799.13
with “-”)
Income on disposal of assets (Loss is listed
132,203.39 -3,617.48
with “-”)
II. Operating profit (Loss is listed with “-”) 76,463,062.01 81,444,294.30
Add: Non-operating income 23,930.00 128,162.00
Less: Non-operating expense 248,133.83
III. Total Profit (Loss is listed with “-”) 76,238,858.18 81,572,456.30
Less: Income tax 7,419,865.03 10,250,540.26
IV. Net profit (Net loss is listed with “-”) 68,818,993.15 71,321,916.04
(i)continuous operating net profit (net loss listed
68,818,993.15 71,321,916.04
with ‘-”)
(ii) termination of net profit (net loss listed with
‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which will
not be reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(II) Other comprehensive income items which
will be reclassified subsequently to profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
38
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-maturity investments
that re-classify to available-for-sale financial asset
6.Credit impairment provision for other
debt investment
7.Cash flow hedging reserve
8.Translation differences arising on
translation of foreign currency financial statements
9.Other
VI. Total comprehensive income 68,818,993.15 71,321,916.04
VII. Earnings per share:
(i) Basic earnings per share 0.0659 0.0683
(ii) Diluted earnings per share 0.0659 0.0683
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Total operating income 13,041,038,562.59 13,248,619,747.37
Including: Operating income 13,041,038,562.59 13,248,619,747.37
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 12,994,783,658.83 13,201,080,887.97
Including: Operating cost 10,611,455,437.49 10,963,171,561.02
Interest expense
39
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Commission charge and commission
expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract
reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 117,977,709.18 102,882,052.60
Sales expense 1,840,716,388.92 1,787,644,342.20
Administrative expense 240,384,878.24 228,370,924.33
R&D expense 194,093,406.99 152,219,238.87
Financial expense -9,844,161.99 -33,207,231.05
Including: Interest expenses 73,580,264.70 70,110,789.68
Interest income 97,691,279.74 88,992,292.78
Add: other income 80,188,595.99 68,046,614.02
Investment income (Loss is listed with “-”) -38,327,115.65 20,726,039.38
Including: Investment income on affiliated
1,251,855.70 -12,056,138.08
company and joint venture
The termination of income recognition
for financial assets measured by amortized cost(Loss is
listed with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed
with “-”)
Income from change of fair value (Loss is
43,185,470.53 -25,833,772.85
listed with “-”)
Loss of credit impairment (Loss is listed with
1,082,468.11
“-”)
Losses of devaluation of asset (Loss is listed
-24,702,231.08 -28,486,908.52
with “-”)
Income from assets disposal (Loss is listed
-4,436,536.97 3,476,687.51
with “-”)
III. Operating profit (Loss is listed with “-”) 103,245,554.69 85,467,518.94
Add: Non-operating income 5,694,649.89 5,443,167.59
Less: Non-operating expense 3,776,106.23 60,249.87
IV. Total profit (Loss is listed with “-”) 105,164,098.35 90,850,436.66
40
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Less: Income tax expense 36,397,055.33 25,015,797.92
V. Net profit (Net loss is listed with “-”) 68,767,043.02 65,834,638.74
(i) Classify by business continuity
1.continuous operating net profit (net loss listed
68,767,043.02 65,834,638.74
with ‘-”)
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent
80,752,019.41 65,638,506.12
company
2.Minority shareholders’ gains and losses -11,984,976.39 196,132.62
VI. Net after-tax of other comprehensive income -3,102,378.92 -6,466,960.36
Net after-tax of other comprehensive income
-1,799,468.82 -5,210,496.62
attributable to owners of parent company
(I) Other comprehensive income items which will
not be reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(ii) Other comprehensive income items which
-1,799,468.82 -5,210,496.62
will be reclassified subsequently to profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-maturity investments
that re-classify to available-for-sale financial asset
6.Credit impairment provision for other
debt investment
41
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
7.Cash flow hedging reserve
8.Translation differences arising on
-1,799,468.82 -5,210,496.62
translation of foreign currency financial statements
9.Other
Net after-tax of other comprehensive income
-1,302,910.10 -1,256,463.74
attributable to minority shareholders
VII. Total comprehensive income 65,664,664.10 59,367,678.38
Total comprehensive income attributable to owners
78,952,550.59 60,428,009.50
of parent Company
Total comprehensive income attributable to
-13,287,886.49 -1,060,331.12
minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0773 0.0628
(ii) Diluted earnings per share 0.0773 0.0628
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0
Yuan achieved last period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Operating income 7,198,760,931.63 6,883,945,824.65
Less: Operating cost 6,438,821,213.52 6,102,437,941.57
Taxes and surcharge 59,372,381.91 44,193,309.99
Sales expenses 477,587,775.78 501,143,891.03
Administration expenses 100,853,326.37 94,252,573.07
R&D expenses 80,879,626.58 69,052,600.75
Financial expenses 2,111,585.97 9,606,238.12
Including: interest expenses 54,418,469.14 55,250,636.77
Interest income 68,936,401.63 57,329,240.66
Add: other income 56,735,800.59 49,742,843.47
Investment income (Loss is listed with “-”) 20,154,143.04 42,953,713.52
42
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Including: Investment income on affiliated
2,961,957.42 3,776,002.08
Company and joint venture
The termination of income recognition
for financial assets measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income (Loss is listed
with “-”)
Changing income of fair value (Loss is listed
10,027,189.27 -14,687,912.73
with “-”)
Loss of credit impairment (Loss is listed with
10,417,545.43
“-”)
Losses of devaluation of asset (Loss is listed
-6,377,866.03 -14,834,202.44
with “-”)
Income on disposal of assets (Loss is listed
-659,108.67 -880,921.32
with “-”)
II. Operating profit (Loss is listed with “-”) 129,432,725.13 125,552,790.62
Add: Non-operating income 244,520.00 3,874,754.46
Less: Non-operating expense 248,133.83
III. Total Profit (Loss is listed with “-”) 129,429,111.30 129,427,545.08
Less: Income tax 8,477,826.62 7,816,660.55
IV. Net profit (Net loss is listed with “-”) 120,951,284.68 121,610,884.53
(i)continuous operating net profit (net loss listed
120,951,284.68 121,610,884.53
with ‘-”)
(ii) termination of net profit (net loss listed with
‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which will
not be reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(II) Other comprehensive income items which
43
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
will be reclassified subsequently to profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-maturity investments
that re-classify to available-for-sale financial asset
6.Credit impairment provision for other
debt investment
7.Cash flow hedging reserve
8.Translation differences arising on
translation of foreign currency financial statements
9.Other
VI. Total comprehensive income 120,951,284.68 121,610,884.53
VII. Earnings per share:
(i) Basic earnings per share 0.1158 0.1164
(ii) Diluted earnings per share 0.1158 0.1164
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and
12,688,809,148.13 12,294,447,275.35
providing labor services
Net increase of customer deposit and inter-bank
deposit
Net increase of loan from central bank
Net increase of capital borrowed from other
44
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest, commission charge
and commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchase
of securities
Write-back of tax received 280,384,080.90 455,080,647.00
Other cash received concerning operating activities 125,280,221.18 234,806,474.37
Subtotal of cash inflow arising from operating activities 13,094,473,450.21 12,984,334,396.72
Cash paid for purchasing commodities and
10,506,147,051.44 10,544,503,046.16
receiving labor service
Net increase of customer loans and advances
Net increase of deposits in central bank and
inter-bank
Cash paid for original insurance contract
compensation
Net increase of capital lent
Cash paid for interest, commission charge and
commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 1,153,887,410.73 1,233,337,030.56
Taxes paid 448,423,347.16 297,025,746.90
Other cash paid concerning operating activities 784,789,548.98 668,241,202.55
Subtotal of cash outflow arising from operating
12,893,247,358.31 12,743,107,026.17
activities
Net cash flows arising from operating activities 201,226,091.90 241,227,370.55
II. Cash flows arising from investing activities:
Cash received from recovering investment 2,174,000,000.00 1,900,000,000.00
Cash received from investment income 37,989,139.50 39,313,892.16
Net cash received from disposal of fixed,
19,483,459.24 17,944,967.00
intangible and other long-term assets
Net cash received from disposal of subsidiaries
45
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
and other units
Other cash received concerning investing activities 94,129,473.53 95,944,328.41
Subtotal of cash inflow from investing activities 2,325,602,072.27 2,053,203,187.57
Cash paid for purchasing fixed, intangible and
266,302,834.52 436,847,276.96
other long-term assets
Cash paid for investment 1,981,000,000.00 3,020,000,001.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 76,709,995.61 255,500.00
Subtotal of cash outflow from investing activities 2,324,012,830.13 3,457,102,777.96
Net cash flows arising from investing activities 1,589,242.14 -1,403,899,590.39
III. Cash flows arising from financing activities
Cash received from absorbing investment 24,865,000.00
Including: Cash received from absorbing
24,865,000.00
minority shareholders’ investment by subsidiaries
Cash received from loans 1,308,256,908.10 2,021,566,261.86
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 1,308,256,908.10 2,046,431,261.86
Cash paid for settling debts 1,925,202,449.42 2,133,854,035.14
Cash paid for dividend and profit distributing or
127,772,072.70 109,269,826.49
interest paying
Including: Dividend and profit of minority
2,274,030.00
shareholder paid by subsidiaries
Other cash paid concerning financing activities 32,764,857.16 2,050,458.19
Subtotal of cash outflow from financing activities 2,085,739,379.28 2,245,174,319.82
Net cash flows arising from financing activities -777,482,471.18 -198,743,057.96
IV. Influence on cash and cash equivalents due to
12,976,331.25 3,791,101.79
fluctuation in exchange rate
V. Net increase of cash and cash equivalents -561,690,805.89 -1,357,624,176.01
Add: Balance of cash and cash equivalents at the
4,484,643,187.93 5,089,765,770.39
period -begin
VI. Balance of cash and cash equivalents at the period
3,922,952,382.04 3,732,141,594.38
-end
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
46
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Person in charge of accounting institute: Yang Jun
8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Cash flows arising from operating activities:
Cash received from selling commodities and
6,358,153,483.13 5,886,537,353.55
providing labor services
Write-back of tax received 135,160,922.67 214,262,771.43
Other cash received concerning operating activities 66,198,821.85 51,985,080.37
Subtotal of cash inflow arising from operating activities 6,559,513,227.65 6,152,785,205.35
Cash paid for purchasing commodities and
5,874,686,994.43 5,200,208,904.42
receiving labor service
Cash paid to/for staff and workers 327,130,629.38 382,116,598.39
Taxes paid 156,564,790.86 59,998,461.89
Other cash paid concerning operating activities 330,317,153.84 280,528,778.03
Subtotal of cash outflow arising from operating
6,688,699,568.51 5,922,852,742.73
activities
Net cash flows arising from operating activities -129,186,340.86 229,932,462.62
II. Cash flows arising from investing activities:
Cash received from recovering investment 2,174,000,000.00 1,860,000,000.00
Cash received from investment income 42,579,139.50 41,935,522.31
Net cash received from disposal of fixed,
6,708,283.94 220,903.00
intangible and other long-term assets
Net cash received from disposal of subsidiaries
and other units
Other cash received concerning investing activities 309,067,175.10 89,093,823.56
Subtotal of cash inflow from investing activities 2,532,354,598.54 1,991,250,248.87
Cash paid for purchasing fixed, intangible and
139,125,420.63 144,003,295.22
other long-term assets
Cash paid for investment 1,987,000,000.00 3,030,704,000.00
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 75,426,953.88 30,000,000.00
Subtotal of cash outflow from investing activities 2,201,552,374.51 3,204,707,295.22
Net cash flows arising from investing activities 330,802,224.03 -1,213,457,046.35
47
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 1,064,409,999.44 1,549,720,995.00
Other cash received concerning financing activities 28,609,663.72 7,594,599.50
Subtotal of cash inflow from financing activities 1,093,019,663.16 1,557,315,594.50
Cash paid for settling debts 1,451,985,025.00 1,468,595,600.00
Cash paid for dividend and profit distributing or
114,912,675.86 99,520,906.42
interest paying
Other cash paid concerning financing activities 121,717,485.21 279,276,931.43
Subtotal of cash outflow from financing activities 1,688,615,186.07 1,847,393,437.85
Net cash flows arising from financing activities -595,595,522.91 -290,077,843.35
IV. Influence on cash and cash equivalents due to
8,391,306.55 6,180,497.06
fluctuation in exchange rate
V. Net increase of cash and cash equivalents -385,588,333.19 -1,267,421,930.02
Add: Balance of cash and cash equivalents at the
2,894,384,811.05 3,410,029,424.54
period -begin
VI. Balance of cash and cash equivalents at the period
2,508,796,477.86 2,142,607,494.52
-end
II. Financial statement adjustment
1.Relevant items of the financial statement at beginning of the year when implementing the new financial
instrument standards, new revenue standards or new leasing standards since 2019
√ Applicable □ Not applicable
Consolidated Balance Sheet
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
Monetary funds 4,596,077,557.40 4,596,077,557.40
Settlement provisions
Capital lent
Tradable financial assets 9,253,635.59 9,253,635.59
Financial assets measured by fair value and
9,253,635.59 -9,253,635.59
with variation reckoned into current gains/losses
Derivative financial assets
Note receivable 2,387,830,887.74 2,370,568,253.64 -17,262,634.10
48
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Account receivable 1,670,988,644.76 1,673,362,136.29 2,373,491.53
Receivable financing
Accounts paid in advance 86,180,459.26 86,180,459.26
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 62,129,574.17 63,192,740.93 1,063,166.76
Including: Interest receivable 2,653,712.36 2,653,712.36
Dividend receivable
Buying back the sale of financial assets
Inventories 2,174,436,573.67 2,174,436,573.67
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 1,184,686,956.96 1,184,686,956.96
Total current assets 12,171,584,289.55 12,157,758,313.74 -13,825,975.81
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales 45,000,000.00 -45,000,000.00
Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 61,869,440.55 67,552,541.78 5,683,101.23
Investment in other equity instrument
Other non-current financial assets 45,000,000.00 45,000,000.00
Investment real estate 46,846,507.41 46,846,507.41
Fixed assets 1,733,957,012.14 1,733,957,012.14
Construction in progress 464,558,352.60 464,558,352.60
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 817,579,958.94 817,579,958.94
Expense on Research and Development 108,210,966.60 108,210,966.60
49
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 112,203,656.75 112,203,656.75
Other non-current asset
Total non-current asset 3,390,225,894.99 3,395,908,996.22 5,683,101.23
Total assets 15,561,810,184.54 15,553,667,309.96 -8,142,874.58
Current liabilities:
Short-term loans 2,336,373,929.62 2,336,373,929.62
Loan from central bank
Capital borrowed
Tradable financial liability 55,586,666.70 55,586,666.70
Financial liability measured by fair value and
55,586,666.70 -55,586,666.70
with variation reckoned into current gains/losses
Derivative financial liability
Note payable 3,727,754,399.60 3,727,754,399.60
Account payable 2,282,174,981.38 2,282,174,981.38
Accounts received in advance 354,551,354.80 354,551,354.80
Contractual liability
Selling financial asset of repurchase
Absorbing deposit and inter-bank deposit
Security trading of agency
Security sales of agency
Wage payable 163,638,627.79 163,638,627.79
Taxes payable 109,753,432.17 109,753,432.17
Other account payable 660,320,360.26 660,320,360.26
Including: Interest payable 7,519,756.26 7,519,756.26
Dividend payable 17,317,286.45 17,317,286.45
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 273,682,737.85 273,682,737.85
Other current liabilities
Total current liabilities 9,963,836,490.17 9,963,836,490.17
Non-current liabilities:
50
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Insurance contract reserve
Long-term loans 1,920,000.00 1,920,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 5,017,208.00 5,017,208.00
Long-term wages payable 19,073,101.29 19,073,101.29
Accrual liability 273,063,677.21 273,063,677.21
Deferred income 160,250,963.60 160,250,963.60
Deferred income tax liabilities 3,098,699.11 3,098,699.11
Other non-current liabilities
Total non-current liabilities 462,423,649.21 462,423,649.21
Total liabilities 10,426,260,139.38 10,426,260,139.38
Owner’s equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,684,369,598.46 2,684,369,598.46
Less: Inventory shares
Other comprehensive income -18,143,569.26 -18,143,569.26
Reasonable reserve
Surplus public reserve 400,673,993.50 399,650,743.38 -1,023,250.12
Provision of general risk
Retained profit 904,232,582.87 901,498,253.96 -2,734,328.91
Total owner’ s equity attributable to parent
5,015,730,486.57 5,011,972,907.54 -3,757,579.03
company
Minority interests 119,819,558.59 115,434,263.04 -4,385,295.55
Total owner’ s equity 5,135,550,045.16 5,127,407,170.58 -8,142,874.58
Total liabilities and owner’ s equity 15,561,810,184.54 15,553,667,309.96 -8,142,874.58
Explanation:
The Company implemented the new financial instrument standards since 1 Jan. 2019, the “Financial assets
measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable financial
assets”, the “Financial assets available for sale” adjusted to “Other non-current financial assets”, the “Financial
51
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
liabilities measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable
financial liabilities”.
Under the convergence provisions of the new financial instrument standards, the Company need not restate
prior comparability, there is no need to adjust the information presented in the comparative financial statements
that is inconsistent with the requirements of the new standards. The difference between original book value of a
financial instrument and the new book value at the date of implementation of these standards, will reckon into the
retained income for period-begin of 2019.
The joint venture-Sichuan Zhiyijia Network Technology Co., Ltd implemented the new financial instrument
standards since 2019, and adjusted the owners equity at year-beginning, the Company synchronized adjustment
according to the shareholding ratio, and reckoned into the long-term equity investment of year-beginning for year
2019 and retained income for year-begin.
Balance Sheet of Parent Company
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
Monetary funds 2,897,004,041.87 2,897,004,041.87
Tradable financial assets 9,253,635.59 9,253,635.59
Financial assets measured by fair value and with
9,253,635.59 -9,253,635.59
variation reckoned into current gains/losses
Derivative financial assets
Note receivable 2,433,243,946.64 2,419,743,946.64 -13,500,000.00
Account receivable 1,050,282,023.37 1,047,769,123.31 -2,512,900.06
Receivable financing
Accounts paid in advance 58,710,427.38 58,710,427.38
Other account receivable 182,744,033.52 182,841,331.20 97,297.68
Including: Interest receivable 2,653,712.36 2,653,712.36
Dividend receivable
Inventories 911,130,106.30 911,130,106.30
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 1,113,987,528.70 1,113,987,528.70
Total current assets 8,656,355,743.37 8,640,440,140.99 -15,915,602.38
Non-current assets:
Debt investment
Available-for-sale financial assets 45,000,000.00 -45,000,000.00
52
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 1,731,109,903.70 1,736,793,004.93 5,683,101.23
Investment in other equity instrument
Other non-current financial assets 45,000,000.00 45,000,000.00
Investment real estate 7,618,550.16 7,618,550.16
Fixed assets 1,082,915,540.08 1,082,915,540.08
Construction in progress 125,064,106.10 125,064,106.10
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 462,425,105.64 462,425,105.64
Research and development costs 57,383,653.72 57,383,653.72
Goodwill
Long-term deferred expenses
Deferred income tax assets 78,357,299.17 78,357,299.17
Other non-current assets
Total non-current assets 3,589,874,158.57 3,595,557,259.80 5,683,101.23
Total assets 12,246,229,901.94 12,235,997,400.79 -10,232,501.15
Current liabilities:
Short-term borrowings 1,911,719,726.13 1,911,719,726.13
Tradable financial liability 19,893,875.00 19,893,875.00
Financial liability measured by fair value and
19,893,875.00 -19,893,875.00
with variation reckoned into current gains/losses
Derivative financial liability
Notes payable 2,001,442,110.63 2,001,442,110.63
Account payable 2,011,821,519.82 2,011,821,519.82
Accounts received in advance 105,815,140.88 105,815,140.88
Contractual liability
Wage payable 31,271,182.48 31,271,182.48
Taxes payable 21,992,129.58 21,992,129.58
Other accounts payable 427,293,961.56 427,293,961.56
Including: Interest payable 5,801,215.14 5,801,215.14
53
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
Dividend payable 17,317,286.45 17,317,286.45
Liability held for sale
Non-current liabilities due within one year 258,588,504.48 258,588,504.48
Other current liabilities
Total current liabilities 6,789,838,150.56 6,789,838,150.56
Non-current liabilities:
Long-term loans 1,920,000.00 1,920,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 19,073,101.29 19,073,101.29
Accrued liabilities 266,641,323.73 266,641,323.73
Deferred income 53,118,676.50 53,118,676.50
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 340,753,101.52 340,753,101.52
Total liabilities 7,130,591,252.08 7,130,591,252.08
Owners’ equity:
Share capital 1,044,597,881.00 1,044,597,881.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 2,753,017,007.10 2,753,017,007.10
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 400,455,827.82 399,432,577.70 -1,023,250.12
Retained profit 917,567,933.94 908,358,682.91 -9,209,251.03
Total owner’s equity 5,115,638,649.86 5,105,406,148.71 -10,232,501.15
Total liabilities and owner’s equity 12,246,229,901.94 12,235,997,400.79 -10,232,501.15
Explanation:
The Company implemented the new financial instrument standards since 1 Jan. 2019, the “Financial assets
measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable financial
54
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)
assets”, the “Financial assets available for sale” adjusted to “Other non-current financial assets”, the “Financial
liabilities measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable
financial liabilities”.
Under the convergence provisions of the new financial instrument standards, the Company need not restate
prior comparability, there is no need to adjust the information presented in the comparative financial statements
that is inconsistent with the requirements of the new standards. The difference between original book value of a
financial instrument and the new book value at the date of implementation of these standards, will reckon into the
retained income for period-begin of 2019.
The joint venture-Sichuan Zhiyijia Network Technology Co., Ltd implemented the new financial instrument
standards since 2019, and adjusted the owners equity at year-beginning, the Company synchronized adjustment
according to the shareholding ratio, and reckoned into the long-term equity investment of year-beginning for year
2019 and retained income for year-begin.
2. Explanation on comparative data in the early stage of retroactive adjustment while implemented the new
financial instrument standards or new leasing standards since 2019
□ Applicable √ Not applicable
III. Audit report
Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.
Changhong Meiling Co., Ltd.
Chairman: Wu Dinggang
18 October 2019
55
