CHANGHONG MEILING CO., LTD.
SEMI-ANNUAL FINANCIAL REPORT 2021
August 2021
CHANGHONG MEILING CO., LTD
SEMI-ANNUAL FINANCIAL REPORT 2020 (Unaudited)
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD.
In RMB
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 5,310,519,267.78 6,594,786,789.98
Settlement provisions
Capital lent
Trading financial assets 755,672,778.49 47,242,339.07
Derivative financial assets
Note receivable 225,980,582.49 340,421,386.71
Account receivable 2,546,059,071.18 1,130,275,780.66
Receivable financing 1,132,467,568.98 1,632,388,702.83
Accounts paid in advance 54,246,200.90 30,105,373.40
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 119,579,871.70 145,705,978.26
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 2,285,488,785.06 1,715,354,951.43
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 219,339,591.32 198,353,464.98
Total current assets 12,649,353,717.90 11,834,634,767.32
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 59,080,517.76 76,982,822.38
Investment in other equity instrument
107
Other non-current financial assets 548,148,931.34 548,148,931.34
Investment real estate 54,108,683.17 53,888,462.00
Fixed assets 2,350,222,653.32 2,391,859,440.31
Construction in progress 70,466,482.26 60,775,088.96
Productive biological asset
Oil and gas asset
Right-of-use assets 20,282,488.32
Intangible assets 927,615,291.27 936,851,520.65
Expense on Research and Development 96,330,033.73 73,028,441.56
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 107,738,248.10 127,185,979.94
Other non-current asset
Total non-current asset 4,233,993,329.27 4,268,720,687.14
Total assets 16,883,347,047.17 16,103,355,454.46
Current liabilities:
Short-term loans 869,283,195.68 1,336,209,050.55
Loan from central bank
Capital borrowed
Trading financial liability 2,746,170.22 4,584,076.51
Derivative financial liability
Note payable 4,988,353,889.72 4,439,607,982.34
Account payable 3,669,199,259.64 2,851,999,684.30
Accounts received in advance
Contractual liability 344,400,472.19 522,550,891.28
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 196,823,503.48 290,321,776.05
Taxes payable 119,719,710.97 89,682,433.90
Other account payable 878,414,887.45 724,701,686.72
Including: Interest payable
Dividend payable 19,567,820.81 4,466,628.25
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 421,663,697.44 407,825,150.74
Other current liabilities 23,101,717.53 22,923,698.73
Total current liabilities 11,513,706,504.32 10,690,406,431.12
Non-current liabilities:
Insurance contract reserve
Long-term loans 178,000,000.00 188,231,439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 12,529,575.32
Long-term account payable 1,433,821.62 1,705,323.91
Long-term wages payable 9,175,955.85 10,571,526.69
108
Accrual liability 23,102,517.39 62,392,735.07
Deferred income 167,352,922.29 177,377,450.12
Deferred income tax liabilities 6,920,365.79 10,575,582.33
Other non-current liabilities
Total non-current liabilities 398,515,158.26 450,854,057.42
Total liabilities 11,912,221,662.58 11,141,260,488.54
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 2,683,833,493.92 2,683,837,229.12
Less: Inventory shares 16,958,477.28 9,929,336.18
Other comprehensive income -22,722,447.52 -21,451,084.17
Reasonable reserve
Surplus public reserve 416,364,790.43 416,364,790.43
Provision of general risk
Retained profit 726,135,293.17 740,754,202.23
Total owner’ s equity attributable to parent company 4,831,250,533.72 4,854,173,682.43
Minority interests 139,874,850.87 107,921,283.49
Total owner’ s equity 4,971,125,384.59 4,962,094,965.92
Total liabilities and owner’ s equity 16,883,347,047.17 16,103,355,454.46
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 June 30, 2021 December 31, 2020
Current assets:
Monetary funds 3,072,458,869.77 4,605,962,184.11
Trading financial assets 734,738,131.52 37,589,391.07
Derivative financial assets
Note receivable 77,418,060.60 286,990,200.00
Account receivable 1,868,146,673.14 1,019,299,017.40
Receivable financing 1,020,374,809.16 1,561,429,139.80
Accounts paid in advance 62,698,224.34 39,571,728.09
Other account receivable 46,277,319.42 49,093,918.57
Including: Interest receivable
Dividend receivable
Inventories 631,726,937.31 578,905,855.30
Contractual assets
Assets held for sale
Non-current assets maturing within one year
109
Other current assets 126,732,141.71 142,573,164.77
Total current assets 7,640,571,166.97 8,321,414,599.11
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1,854,070,770.46 1,834,115,835.95
Investment in other equity instrument
Other non-current financial assets 548,148,931.34 548,148,931.34
Investment real estate 3,857,164.06 3,961,590.38
Fixed assets 1,203,325,322.41 1,229,803,474.56
Construction in progress 57,766,896.80 47,570,309.13
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 460,793,473.27 479,923,618.32
Research and development costs 65,641,364.07 42,913,363.51
Goodwill
Long-term deferred expenses
Deferred income tax assets 84,639,482.94 103,462,284.33
Other non-current assets
Total non-current assets 4,278,243,405.35 4,289,899,407.52
Total assets 11,918,814,572.32 12,611,314,006.63
Current liabilities:
Short-term borrowings 841,084,474.45 1,234,926,592.05
Trading financial liability 1,293,006.11 2,512,269.00
Derivative financial liability
Notes payable 2,531,614,143.77 2,510,288,511.69
Account payable 1,771,323,826.18 1,918,960,127.71
Accounts received in advance
Contractual liability 154,407,810.42 281,974,752.24
Wage payable 58,931,758.91 130,314,834.51
Taxes payable 15,899,092.72 19,582,700.30
Other accounts payable 692,819,441.99 624,090,798.72
Including: Interest payable
Dividend payable 18,967,820.81 3,866,628.25
Liability held for sale
Non-current liabilities due within one year 413,561,652.50 407,141,888.08
Other current liabilities 5,879,984.75 6,432,113.43
Total current liabilities 6,486,815,191.80 7,136,224,587.73
Non-current liabilities:
Long-term loans 178,000,000.00 188,231,439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 9,175,955.85 10,571,526.69
Accrued liabilities 23,102,517.39 55,035,910.31
110
Deferred income 66,134,567.35 67,315,337.57
Deferred income tax liabilities 2,858,108.51 6,102,908.01
Other non-current liabilities
Total non-current liabilities 279,271,149.10 327,257,121.88
Total liabilities 6,766,086,340.90 7,463,481,709.61
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 2,753,134,052.79 2,753,137,787.99
Less: Inventory shares 16,958,477.28 9,929,336.18
Other comprehensive income -
Special reserve
Surplus reserve 416,146,624.75 416,146,624.75
Retained profit 955,808,150.16 943,879,339.46
Total owner’s equity 5,152,728,231.42 5,147,832,297.02
Total liabilities and owner’s equity 11,918,814,572.32 12,611,314,006.63
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
Item semi-annual of 2021 semi-annual of 2020
I. Total operating income 9,602,759,345.29 6,795,860,736.99
Including: Operating income 9,602,759,345.29 6,795,860,736.99
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 9,556,489,547.17 7,023,628,758.57
Including: Operating cost 8,177,231,196.17 5,753,849,889.35
Interest expense
Commission charge and commission expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 61,077,730.97 55,304,713.23
Sales expense 984,805,928.94 923,983,428.23
Administrative expense 152,957,426.98 135,469,692.92
R&D expense 186,113,254.21 167,889,148.89
Financial expense -5,695,990.10 -12,868,114.05
Including: Interest expenses 37,292,383.25 45,498,046.65
Interest income 62,433,816.96 74,784,016.69
111
Add: Other income 57,250,100.93 54,852,125.20
Investment income (Loss is listed with “-”) 52,533,705.90 7,151,886.26
Including: Investment income on affiliated company and joint -16,047,810.77 209,880.54
venture
The termination of income recognition for financial
assets measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -9,731,654.29 -9,724,752.12
Loss of credit impairment (Loss is listed with “-”) -15,121,003.89 -22,270,221.19
Losses of devaluation of asset (Loss is listed with “-”) -43,310,366.42 -26,583,248.58
Income from assets disposal (Loss is listed with “-”) -208,978.90 -178,704.98
III. Operating profit (Loss is listed with “-”) 87,681,601.45 -224,520,936.99
Add: Non-operating income 5,862,320.71 3,445,609.21
Less: Non-operating expense 760,592.62 959,554.13
IV. Total profit (Loss is listed with “-”) 92,783,329.54 -222,034,881.91
Less: Income tax expense 37,086,971.38 -2,863,011.42
V. Net profit (Net loss is listed with “-”) 55,696,358.16 -219,171,870.49
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 55,696,358.16 -219,171,870.49
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 37,157,511.54 -210,130,580.93
2.Minority shareholders’ gains and losses 18,538,846.62 -9,041,289.56
VI. Net after-tax of other comprehensive income -1,257,750.59 -1,009,706.23
Net after-tax of other comprehensive income attributable to owners -1,271,363.35 -630,002.84
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 will be reclassified -1,271,363.35
-630,002.84
subsequently to profit or loss
1.Other comprehensive income under equity method that -177,046.32
can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign -1,094,317.03 -630,002.84
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority 13,612.76 -379,703.39
shareholders
VII. Total comprehensive income 54,438,607.57 -220,181,576.72
Total comprehensive income attributable to owners of parent 35,886,148.19 -210,760,583.77
Company
112
Total comprehensive income attributable to minority shareholders 18,552,459.38 -9,420,992.95
VIII. Earnings per share:
(i) Basic earnings per share 0.0356 -0.2012
(ii) Diluted earnings per share 0.0356 -0.2012
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
In RMB
Item Semi-annual of 2021 Semi-annual of 2020
I. Operating income 3,975,751,904.29 3,213,963,833.18
Less: Operating cost 3,701,614,201.55 3,022,119,390.15
Taxes and surcharge 21,839,365.11 30,342,788.85
Sales expenses 99,271,533.62 110,175,334.78
Administration expenses 56,254,420.78 56,166,016.62
R&D expenses 72,054,454.73 70,182,219.29
Financial expenses -4,429,587.19 -15,767,670.19
Including: Interest expenses 29,845,405.90 37,724,956.37
Interest income 39,962,405.83 62,490,589.12
Add: Other income 36,911,268.50 37,653,498.87
Investment income (Loss is listed with “-”) 37,411,973.74 77,837,668.60
Including: Investment income on affiliated Company and -15,045,065.49 2,738,300.44
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 with “-”) -21,631,996.66 -7,780,805.90
Loss of credit impairment (Loss is listed with “-”) -528,447.83 -5,196,835.46
Losses of devaluation of asset (Loss is listed with “-”) -3,955,719.18 -5,212,993.91
Income on disposal of assets (Loss is listed with “-”) -82,639.64 -319,589.42
II. Operating profit (Loss is listed with “-”) 77,271,954.62 37,726,696.46
Add: Non-operating income 2,299,511.52 1,382,900.11
Less: Non-operating expense 288,232.95 -
III. Total Profit (Loss is listed with “-”) 79,283,233.19 39,109,596.57
Less: Income tax 15,578,001.89 -8,461,043.79
IV. Net profit (Net loss is listed with “-”) 63,705,231.30 47,570,640.36
(i) continuous operating net profit (net loss listed with ‘-”) 63,705,231.30 47,570,640.36
(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
113
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
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 63,705,231.30 47,570,640.36
VII. Earnings per share:
(i) Basic earnings per share 0.0610 0.0455
(ii) Diluted earnings per share 0.0610 0.0455
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2021 Semi-annual of 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 8,512,320,086.90 6,157,786,632.53
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from other financial institution
Cash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
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 316,502,790.54 251,421,150.31
Other cash received concerning operating activities 79,642,427.61 74,202,707.99
Subtotal of cash inflow arising from operating activities 8,908,465,305.05 6,483,410,490.83
Cash paid for purchasing commodities and receiving labor service 7,728,511,418.75 5,671,705,593.94
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Net increase of capital lent
114
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 860,117,506.67 671,140,486.91
Taxes paid 145,836,080.82 122,903,758.87
Other cash paid concerning operating activities 762,496,415.63 405,765,609.52
Subtotal of cash outflow arising from operating activities 9,496,961,421.87 6,871,515,449.24
Net cash flows arising from operating activities -588,496,116.82 -388,104,958.41
II. Cash flows arising from investing activities:
Cash received from recovering investment 700,000,000.00 185,000,000.00
Cash received from investment income 6,856,855.12 10,469,068.45
Net cash received from disposal of fixed, intangible and other 1,095,433.16 210,271.10
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 138,387,471.00 68,390,962.53
Subtotal of cash inflow from investing activities 846,339,759.28 264,070,302.08
Cash paid for purchasing fixed, intangible and other long-term assets 125,772,890.37 234,361,940.15
Cash paid for investment 1,420,000,000.00 735,280,051.17
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 47,506.93 -
Subtotal of cash outflow from investing activities 1,545,820,397.30 969,641,991.32
Net cash flows arising from investing activities -699,480,638.02 -705,571,689.24
III. Cash flows arising from financing activities:
Cash received from absorbing investment 15,000,000.00 -
Including: Cash received from absorbing minority shareholders’ 15,000,000.00 -
investment by subsidiaries
Cash received from loans 934,661,487.16 1,460,006,749.33
Other cash received concerning financing activities 4,675,857.30 -
Subtotal of cash inflow from financing activities 954,337,344.46 1,460,006,749.33
Cash paid for settling debts 1,232,876,410.00 863,778,688.78
Cash paid for dividend and profit distributing or interest paying 66,120,511.52 93,535,991.73
Including: Dividend and profit of minority shareholder paid by 1,598,892.00 4,796,676.00
subsidiaries
Other cash paid concerning financing activities 11,341,697.18 930,211.84
Subtotal of cash outflow from financing activities 1,310,338,618.70 958,244,892.35
Net cash flows arising from financing activities -356,001,274.24 501,761,856.98
IV. Influence on cash and cash equivalents due to fluctuation in exchange -14,000,285.27 -1,424,516.77
rate
V. Net increase of cash and cash equivalents -1,657,978,314.35 -593,339,307.44
Add: Balance of cash and cash equivalents at the period -begin 6,425,529,815.10 5,385,807,475.51
VI. Balance of cash and cash equivalents at the period -end 4,767,551,500.75 4,792,468,168.07
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
115
Item Semi-annual of 2021 Semi-annual of 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor 3,289,172,496.97 3,141,710,817.95
services
Write-back of tax received 161,887,225.42 107,087,533.56
Other cash received concerning operating activities 52,318,868.30 47,856,925.29
Subtotal of cash inflow arising from operating activities 3,503,378,590.69 3,296,655,276.80
Cash paid for purchasing commodities and receiving labor 3,656,146,099.06 2,941,987,065.27
service
Cash paid to/for staff and workers 234,676,912.75 161,430,366.15
Taxes paid 26,688,550.76 33,476,947.97
Other cash paid concerning operating activities 313,451,006.32 141,140,278.49
Subtotal of cash outflow arising from operating activities 4,230,962,568.89 3,278,034,657.88
Net cash flows arising from operating activities -727,583,978.20 18,620,618.92
II. Cash flows arising from investing activities:
Cash received from recovering investment 700,000,000.00 150,000,000.00
Cash received from investment income 7,992,927.12 78,655,551.41
Net cash received from disposal of fixed, intangible and other 867,706.09 193,300.00
long-term assets
Net cash received from disposal of subsidiaries and other units -
Other cash received concerning investing activities 94,536,857.03 54,966,416.09
Subtotal of cash inflow from investing activities 803,397,490.24 283,815,267.50
Cash paid for purchasing fixed, intangible and other long-term 71,849,222.83 75,044,489.91
assets
Cash paid for investment 1,455,000,000.00 835,280,049.17
Net cash received from subsidiaries and other units obtained -
Other cash paid concerning investing activities 102,662.47 -
Subtotal of cash outflow from investing activities 1,526,951,885.30 910,324,539.08
Net cash flows arising from investing activities -723,554,395.06 -626,509,271.58
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 924,661,487.16 1,058,647,533.33
Other cash received concerning financing activities 170,670,545.80 9,652,301.36
Subtotal of cash inflow from financing activities 1,095,332,032.96 1,068,299,834.69
Cash paid for settling debts 1,149,699,750.00 614,397,944.82
Cash paid for dividend and profit distributing or interest paying 63,099,086.76 83,234,428.66
Other cash paid concerning financing activities 146,209,276.30 166,648,785.81
Subtotal of cash outflow from financing activities 1,359,008,113.06 864,281,159.29
Net cash flows arising from financing activities -263,676,080.10 204,018,675.40
IV. Influence on cash and cash equivalents due to fluctuation in -5,782,949.41 182,509.41
exchange rate
V. Net increase of cash and cash equivalents -1,720,597,402.77 -403,687,467.85
Add: Balance of cash and cash equivalents at the period -begin 4,597,503,833.78 4,017,400,437.18
VI. Balance of cash and cash equivalents at the period -end 2,876,906,431.01 3,613,712,969.33
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
116
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
Semi-annual of 2021
Owners’ equity attributable to the parent Company
Other
equity Re
Pro
instrument as
visi
Item on Minority Total owners’
Pr Perp Less: Other on
abl Othe interests equity
Share capital efe etual Capital reserve Inventory comprehensive Surplus reserve of Retained profit Subtotal
Ot e r
rre capit shares income gen
he res
d al eral
r er
sto secu risk
ve
ck rities
I. The ending balance of 9,929,336.18 -21,451,084.17 416,364,790.43 740,754,202.23 4,854,173,682.43 107,921,283.49 4,962,094,965.92
1,044,597,881.00 2,683,837,229.12
the previous year
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
II. The beginning 1,044,597,881.00 2,683,837,229.12 9,929,336.18 -21,451,084.17 416,364,790.43 740,754,202.23 4,854,173,682.43 107,921,283.49 4,962,094,965.92
balance of the current
year
III. Increase/ Decrease in -3,735.20 7,029,141.10 -1,271,363.35 -14,618,909.06 -22,923,148.71 31,953,567.38 9,030,418.67
the period (Decrease is
listed with “-”)
(i) Total comprehensive -1,271,363.35 37,157,511.54 35,886,148.19 18,552,459.38 54,438,607.57
income
(ii) Owners’ devoted and -3,735.20 7,029,141.10 -7,032,876.30 15,000,000.00 7,967,123.70
decreased capital
1.Common shares -3,735.20 7,029,141.10 -7,032,876.30 15,000,000.00 7,967,123.70
117
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(iii) Profit distribution -51,776,420.60 -51,776,420.60 -1,598,892.00 -53,375,312.60
1. Withdrawal of surplus
reserves
2. Withdrawal of general -51,776,420.60 -51,776,420.60 -1,598,892.00 -53,375,312.60
risk provisions
3. Distribution for
owners (or shareholders)
4. Other
(iv) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4. Carry-over retained
earnings from the
defined benefit plans
5. Carry-over retained
earnings from other
comprehensive income
6. Other
(v) Reasonable reserve
1. Withdrawal in the
report period
118
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
2. Usage in the report
period
(vi) Others
IV. Balance at the end of 1,044,597,881.00 2,683,833,493.92 16,958,477.28 -22,722,447.52 416,364,790.43 726,135,293.17 4,831,250,533.72 139,874,850.87 4,971,125,384.59
the period
Amount of the previous period
In RMB
Semi-annual of 2020
Owners’ equity attributable to the parent Company
Other Re
equity instrument as Prov
Item on ision Minority Total owners’
Perpet Less: Other
abl of Othe interests equity
Share capital Preferr ual Capital reserve Inventor comprehensive Surplus reserve Retained profit Subtotal
Othe e gene r
ed capital y shares income
r res ral
stock securit er risk
ies ve
I. The ending balance 1,044,597,881.00 2,684,366,619.10 -18,931,430.36 410,786,860.20 884,127,743.42 5,004,947,673.36 107,027,038.74 5,111,974,712.10
of the previous year
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
II. The beginning 1,044,597,881.00 2,684,366,619.10 -18,931,430.36 410,786,860.20 884,127,743.42 5,004,947,673.36 107,027,038.74 5,111,974,712.10
balance of the current
year
III. Increase/ Decrease -559,888.62 -630,002.84 -262,360,474.98 -263,550,366.44 -14,537,831.49 -278,088,197.93
in the period (Decrease
is listed with “-”)
(i) Total comprehensive -630,002.84 -210,130,580.93 -210,760,583.77 -9,420,992.95 -220,181,576.72
income
(ii) Owners’ devoted -559,888.62 -559,888.62 279,839.46 -280,049.16
and decreased capital
119
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
1.Common shares
invested by
shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned
into owners equity with
share-based payment
4. Other -559,888.62 -559,888.62 279,839.46 -280,049.16
(iii) Profit distribution -52,229,894.05 -52,229,894.05 -5,396,678.00 -57,626,572.05
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk provisions
3. Distribution for -52,229,894.05 -52,229,894.05 -4,796,678.00 -57,026,572.05
owners (or
shareholders)
4. Other -600,000.00 -600,000.00
(iv) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss with
surplus reserve
4. Carry-over retained
earnings from the
defined benefit plans
5. Carry-over retained
earnings from other
comprehensive income
6. Other
(v) Reasonable reserve
120
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
1. Withdrawal in the
report period
2. Usage in the report
period
(vi) Others
IV. Balance at the end 1,044,597,881.00 2,683,806,730.48 -19,561,433.20 410,786,860.20 621,767,268.44 4,741,397,306.92 92,489,207.25 4,833,886,514.17
of the period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
In RMB
Semi-annual of 2021
Other Other
Item equity instrument Less: Inventory comprehe Reasonabl Total owners’
Share capital Capital reserve Surplus reserve Retained profit Other
Preferred Perpetual capital Othe shares nsive e reserve equity
stock securities r income
I. The ending balance of the 1,044,597,881.00 2,753,137,787.99 9,929,336.18 416,146,624.75 943,879,339.46 5,147,832,297.02
previous year
Add: Changes of accounting
policy
Error correction of the last
period
Other
II. The beginning balance of the 1,044,597,881.00 2,753,137,787.99 9,929,336.18 416,146,624.75 943,879,339.46 5,147,832,297.02
current year
III. Increase/ Decrease in the -3,735.20 7,029,141.10 11,928,810.70 4,895,934.40
period (Decrease is listed with
121
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
“-”)
(i) Total comprehensive income 63,705,231.30 63,705,231.30
(ii) Owners’ devoted and -3,735.20 7,029,141.10 -7,032,876.30
decreased capital
1.Common shares invested by -3,735.20 7,029,141.10 -7,032,876.30
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount reckoned into owners
equity with share-based payment
4. Other
(iii) Profit distribution -51,776,420.60 -51,776,420.60
1. Withdrawal of surplus reserves
2. Distribution for owners (or -51,776,420.60 -51,776,420.60
shareholders)
3. Other
(iv) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Carry-over retained earnings
from the defined benefit plans
5. Carry-over retained earnings
from other comprehensive
income
6. Other
(v) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(vi) Others
122
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
IV. Balance at the end of the 1,044,597,881.00 2,753,134,052.79 16,958,477.28 416,146,624.75 955,808,150.16 5,152,728,231.42
period
Amount of the previous period
In RMB
Semi-annual of 2020
Other
Other
equity instrument Less:
Item comprehe Reasonabl Total owners’
Share capital Preferr Perpetual Capital reserve Inventory Surplus reserve Retained profit Other
shares nsive e reserve equity
ed capital Other
income
stock securities
I. The ending balance of the previous year 1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
Add: Changes of accounting policy
Error correction of the last period
Other
II. The beginning balance of the current year 1,044,597,881.00 2,753,017,007.10 410,568,694.52 945,907,861.41 5,154,091,444.03
III. Increase/ Decrease in the period (Decrease -4,659,253.69 -4,659,253.69
is listed with “-”)
(i) Total comprehensive income 47,570,640.36 47,570,640.36
(ii) Owners’ devoted and decreased capital
1.Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount reckoned into owners equity with
share-based payment
4. Other
(iii) Profit distribution -52,229,894.05 -52,229,894.05
1. Withdrawal of surplus reserves
2. Distribution for owners (or shareholders) -52,229,894.05 -52,229,894.05
3. Other
(iv) Carrying forward internal owners’ equity
1. Capital reserves conversed to capital (share
capital)
123
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2021
2. Surplus reserves conversed to capital (share
capital)
3. Remedying loss with surplus reserve
4. Carry-over retained earnings from the
defined benefit plans
5. Carry-over retained earnings from other
comprehensive income
6. Other
(v) Reasonable reserve
1. Withdrawal in the report period
2. Usage in the report period
(vi) Others
IV. Balance at the end of the period 1,044,597,881.00 2,753,017,007.10 410,568,694.52 941,248,607.72 5,149,432,190.34
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
124
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
I. Company profile
Changhong Meiling Co., Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei Meiling
Co., Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993, through Anhui Provincial
Government [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission,
the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18th, 1993
in Shenzhen Stock Exchange. On August 13th, 1996, the Company was approved to issue 100 million B
shares to investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory
Commission. The Company went public in Shenzhen Stock Exchange on August 28th, 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transfers
with Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings Limited
Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred to
as Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the
Company to Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group),
other 45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan
Changhong). On Aug 15, 2007, the above ownership was transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision & Administration Commission of Anhui Provincial
Government replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share Merger
Reform of Hefei Meiling Co., Ltd.”, agreed the Company’s ownership split reform plan. The Company made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and original
Meiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration for
split reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other
non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the
“Notice of Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59]
issued from State-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to
transfer the above said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On
7 August 2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by
State-owned shareholders” [GZCQ (2007) No. 752] issued by SASAC, agrees the above said transferring.
On October 29, 2008, Changhong Group signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd
with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the
Company (accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Reply
of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders”
[GZCQ (2008) No. 1413] issued by SASAC agrees the above said share transferring.
125
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
On 24 December 2010, being deliberated and approved in 32nd Session of 6th BOD and 2nd Extraordinary
Shareholders’ General Meeting of 2010 as well as approval of document [ZJXK (2010) No. 1715] from
CSRC, totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors with
issue price of RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses
RMB 22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital
(share capital) increased RMB 116,731,500 with capital reserve (share premium) RMB 1,061,106,088.5
increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shin Wing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distribution
plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held
by shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December
2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. The
capital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification report
WHSZDKYZ (2011) No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distribution
and capitalization of capital reserve plan, namely to distribute cash dividends of RMB 0.5 (tax included) plus
two shares for every ten shares to all shareholders capitalized from capital reserve, based on the total share
capital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company upon
implementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares,
and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)
No.093.
On November 18, 2015, considered and approved by the 12th Session of the 8th BOD of the company and the
first extraordinary general meeting in 2016, and approved by the document of China Securities Regulatory
Commission [CSRC License No. (2016) 1396] “Reply to the approval of non-public offering of shares of
Hefei Meiling Co., Ltd.”, the company has actually raised funds of 1,569,999,998.84 Yuan by non-public
offering of no more than 334,042,553 new shares at face value of 1 Yuan per share and with issue price no
less than RMB 4.70 per share, after deducting the issue costs of 29,267,276.08 Yuan , the net amount of
raised funds is 1,540,732,722.76 Yuan , the increased paid-in capital (share capital) of 280,858,676.00 Yuan ,
increased capital reserve (share premium) of 1,259,874,046.76 Yuan. This capital increase has been verified
by No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants
(LLP).
126
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ended as 30 June 2021, total share capital of the Company amounting to 1,044,597,881 shares with ordinary
shares in full. Among which, 881,733,881 shares of A-share accounting 84.41% in total shares while B-share
with 162,864,000 shares accounting 15.59% in total shares. Detail share capital as:
Type of stock Quantity Proportion
(I)Restricted shares 8,442,922 0.81%
1. State-owned shares
2. State-owned legal person’s shares 1,653,735 0.16%
3. Other domestic shares 5,521,767 0.53%
Including: Domestic legal person’s
3,978,329 0.38%
shares
Domestic natural person’s
1,543,438 0.15%
shares
4. Foreign shares 1,267,420 0.12%
Including: Overseas legal person’s shares
Overseas natural person’s shares 1,267,420 0.12%
(II)Unrestricted shares 1,036,154,959 99.19%
1. RMB Ordinary shares 874,558,379 83.72%
2. Domestically listed foreign shares 161,596,580 15.47%
3. Overseas listed foreign shares
4. Others
Total shares 1,044,597,881 100.00%
The Company belongs to the manufacture of light industry, and engaged in the production and sale of
refrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;
Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; Legal
Representative: Wu Dinggang; register capital (paid-in capital): 1,044,597,881 Yuan; type of company:
limited liability company(joint venture and listed of Taiwan, Hong Kong and Macao) Business Scope: R&D,
manufacture and sales of cooling apparatus, air-conditioner, washing machine, water heater, kitchenware,
home decoration, bathroom, lamps & lanterns, household & similar appliance, injection plastic machine of
computer controlling, plastic products, metalwork, packaging products and decorations as well as the
installation and technical consultant services. Business of self-produced products, technology export and
import-export of the raw& auxiliary materials, machinery equipment, instrument and technology; department
sales and transportation (Excluding dangerous chemicals), computer network system integration, intelligent
product system integration, software development and technical information services, development,
production, sales and service of automation equipment and electronic products, sales services of cold chain
transport vehicles and refrigerator and freezer van, development, production, sales and service of cold chain
insulation boxes, research and development, production, sales and service of cold storage, commercial
freezer chain display cabinets, commercial cold chain products. (Projects that require approval in accordance
with the law can only be operated after approval by relevant departments)
127
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
II. Scope of consolidated financial statement
In the reporting period, the consolidated financial statements of the Company cover 30 subsidiaries,
including Sichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. and
Zhongke Meiling Cryogenic Technology Co., Ltd. etc. Compared with the previous year, one new subsidiary
includes in the consolidated financial statement- Anhui Ling'an Medical Equipment Co., Ltd.
More details can be seen in the report “VII. Changes in the scope of the merger” and “XIII. Equity in other
entities”carry in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions and
proceedings, and relevant regulation of Accounting Standards for Business Enterprise released by the
Ministry of Finance, and was on the basis of sustainable operation, and the accounting policy and estimation
stated in the “IV. Significant Accounting Policy and Accounting Estimation”
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, and
prepared the financial statement on basis of going concern is reasonable.
IV. Significant Accounting Policy and accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard for
Business Enterprise, and reflects the financial condition, operational achievements and cash flow of the
Company effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Operation cycle
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets and
liabilities.
4. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5. Accountant arrangement method of business combination under common control and not under common
128
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
control
As acquirer, the Company measures the assets and liabilities acquired through business combination under
common control at their carrying values as reflected in the consolidated financial statement of the ultimate
controller as of the combination date. Capital reserve shall be adjusted in respect of any difference between
carrying value of the net assets acquired and carrying value of the combination consideration paid. In case
that capital reserve is insufficient to offset, the Company would adjust retained earnings.
The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business
combination not under common control shall be measured at fair value as of the acquisition date. The cost of
combination represents the fair value of the cash or non-cash assets paid, liabilities issued or committed and
equity securities issued by the Company as at the date of combination in consideration for acquiring the
controlling power in the acquiree, together with the sum of any directly related expenses occurred during
business combination(in case of such business combination as gradually realized through various transactions,
the combination cost refers to the sum of each cost of respective separate transaction). Where the cost of the
combination exceeds the acquirer’s interest in the fair value of the acquirer’s identifiable net assets acquired,
the difference is recognized as goodwill; where the cost of combination is lower than the acquirer’s interest
in the fair value of the acquiree’s identifiable net assets, the Company shall firstly make further review on the
fair values of the net identifiable assets, liabilities or contingent liabilities acquired as well as the fair value of
the non-cash assets portion of combination consideration or the equity securities issued by the Company. In
case that the Company finds the cost of combination is still lower than the acquirer’s interest in the fair value
of the acquiree’s identifiable net assets after such further review, the difference is recognized in
non-operating income for the current period when combination occurs.
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financial
statements.
Any difference arising from the inconformity of accounting year or accounting policies between the
subsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions, non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners’ equity of
subsidiary not attributable to parent company and current net gains and losses, other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests, minority interests, other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control, its operating results and
cash flow will be included in consolidated financial statement since the beginning of the period when
129
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
combination occurs. When preparing comparative consolidated financial statement, the relevant items in
previous years financial statement shall be adjusted as if the reporting entity formed upon combination has
been existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination, adjustments shall be made as if the current status had been
existing when the ultimate controller commenced control in connection of preparing consolidated financial
statement; in connection with preparing comparative statement, the Company shall consolidate the relevant
assets and liabilities of the acquiree into the Company’s comparative consolidated financial statement to the
extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate
controller, and the net assets increased due to combination shall be used to adjust relevant items under
owners’ equity in comparative statement. In order to prevent double computation of the value of the
acquiree’s net assets, the relevant profits and losses, other comprehensive income and change of other net
assets recognized during the period from the date when the Company acquires original equity interests and
the date when the Company and the acquiree are all under ultimate control of the same party (whichever is
later) to the date of combination in respect of the long-term equity investment held by the Company before
satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
losses in the period as the comparative financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results and
cash flow will be included in consolidated financial statement since the Company obtains controlling power.
When preparing consolidated financial statement, the Company shall adjust the subsidiary’s financial
statement based on the fair value of the various identifiable assets, liabilities or contingent liabilities
recognized as of the acquisition date.
As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example, as for equity interests of the investee not under common control acquired through various
transactions which eventually formed business combination, when preparing consolidated financial statement,
the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair
value as of the acquisition date, and any difference between the fair value and carrying value is included in
current investment income. in case that the equity interests in acquiree held by the Company before the
relevant acquisition date involves other comprehensive income at equity method and change of other owners’
equity (other than net gains and losses, other comprehensive income and profit distribution), then the equity
interests would transfer to investment gains and losses for the period which the acquisition date falls upon.
130
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
The other comprehensive income arising from change of the net liabilities or net assets under established
benefit scheme as acquiree’s re-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without
losing control rights over the subsidiary, the difference between the proceeds from disposal of interests and
the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case
capital reserve is not sufficient to offset the difference, retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee, the Company would
re-measure the remaining equity interests at their fair value as of the date when the Company loses control
over the investee when preparing consolidated financial statement. The sum of consideration received from
disposal of equity interest and fair value of the remaining equity interest, less the net assets of the original
subsidiary attributable to the Company calculated based on the original shareholding proportion since the
acquisition date or the date then consolidation commences, is included in investment gains and losses for the
period when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equity
interest investment in original subsidiaries is transferred into current investment gains and losses upon lost of
control.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss of
control and is a package deal, the accounting treatment of these transactions should be dealt with as one
transaction of disposal of the subsidiary until loss of control. However, before the Company loses total
control of the subsidiary, the differences between the actual disposal price and the share of the net assets of
the subsidiary disposed of in every transaction should be recognized as other comprehensive income in the
consolidated financial statements, and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for
jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a party
to the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and
recognizes relevant income and expense separately under relevant agreement or according to its proportion.
As for asset transaction relating to purchase and sales with the jointly controlled entity which does not
constitute business activity, part of the gains and losses arising from such transaction attributable to other
participators of the jointly controlled entity is only recognized.
8. Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value, including but not limited to the followings which meet the aforesaid conditions: debt investment
matured within three months upon the acquisition date, bank time deposit which can be early withdrew by
131
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
serving a notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment at
any time, it would be note recognized as cash; while if can be used for such purpose, it would be recognized
as cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cash
equivalents, and those less than three months are recognized as cash equivalents.
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items
expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance
sheet date. The conversion difference occurred is recorded into prevailing gains and losses, other than the
disclosure which is made according to capitalization rules for the exchange difference occurred from the
special foreign currency borrowings borrowed for constructing and producing the assets satisfying condition
of capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is then
converted into RMB according to the spot exchange rate as of the confirmation day for fair value. And the
conversion difference occurred during the procedure is recorded into prevailing gains and losses directly as
change of fair value. As for the foreign currency non-monetary items measured by historical cost, conversion
is made with the spot exchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign
currency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”,
conversion is made pursuant to the spot exchange rate of business day; income and expense items in income
statement then are also converted pursuant to the spot exchange rate of transaction day. Difference arising
from the aforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rate
as of the occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount
of cash affected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
The financial assets and financial liabilities are measured at fair value on initial recognition. For the financial
assets and liabilities measured by fair value and with variation reckoned into current gains/losses, the related
transaction expenses are directly included in current gains or losses; for other types of financial assets and
liabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferring
a liability in an orderly transaction that occurs on the measurement date. For a financial instrument having an
active market, the Company uses the quoted prices in the active market to determine its fair value.
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Quotations in an active market refer to prices that are readily available from exchanges, brokers, industry
associations, pricing services, etc., and represent the prices of market transactions that actually occur in an
arm's length transaction. If there is no active market for a financial instrument, the Company uses valuation
techniques to determine its fair value. Valuation techniques include reference to prices used in recent market
transactions by parties familiar with the situation and through voluntary trade, and reference to current fair
values of other financial instruments that are substantially identical, discounted cash flow methods, and
option pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured
at amortized cost; the financial assets measured at fair value and whose changes are included in other
comprehensive income; and the financial assets measured by fair value and with variation reckoned into
current gains/losses. The classification of financial assets depends on the business model that the Group's
enterprises manage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the
following conditions: The group's business model for managing the financial assets is to collect contractual
cash flows; the contractual terms of the financial assets stipulate that cash flow generated on a specific date is
only paid for the principal and interest based on the outstanding principal amount. For such financial assets,
the effective interest method is used for subsequent measurement according to the amortized cost, and the
gains or losses arising from amortization or impairment are included in current profits and losses. Such
financial assets mainly include monetary funds, notes receivable, accounts receivable, other receivables, debt
investment and long-term receivables, and so on. The Group lists the debt investment and long-term
receivables due within one year (including one year) from the balance sheet date as non-current assets due
within one year, and lists the debt investment with time limit within one year (including one year) when
acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included in
other comprehensive income when they also meet the following conditions: The Group's business model for
managing the financial assets is targeted at both the collection of contractual cash flows and the sale of
financial assets; the contractual terms of the financial asset stipulate that the cash flow generated on a
specific date is only the payment of the principal and the interest based on the outstanding principal amount.
For such financial assets, fair value is used for subsequent measurement. The discount or premium is
amortized by using the effective interest method and is recognized as interest income or expenses. Except the
impairment losses and the exchange differences of foreign currency monetary financial assets are recognized
as the current profits and losses, the changes in the fair value of such financial assets are recognized as other
comprehensive income until the financial assets are derecognized, the accumulated gains or losses are
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
transferred to the current profits and losses. Interest income related to such financial assets is included in the
current profit and loss. Such financial assets are listed as other debt investments, other debt investments due
within one year (including one year) from the balance sheet date are listed as non-current assets due within
one year; and other debt investments with time limit within one year (including one year) when acquired are
listed as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/losses
Financial assets except for the above-mentioned financial assets measured at amortized cost and financial
assets measured at fair value and whose changes are included in other comprehensive income are classified
as financial assets measured at fair value and whose changes are included in current profits and losses, which
adopt fair value for subsequent measurement and all changes in fair value are included in current profits and
losses. The Group classifies non-trading equity instruments as financial assets measured at fair value and
whose changes are included in current profits and losses. Such financial assets are presented as trading
financial assets, and those expire after more than one year and are expected to be held for more than one year
are presented as other non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assets
measured at amortized cost and financial assets measured at fair value and whose changes are included in
other comprehensive income and recognize the provisions for loss.
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received, that is, the present value of all cash shortages. Among them, for the purchase or source of financial
assets that have suffered credit impairment, the Company discounts the financial assets at the actual interest
rate adjusted by credit.
The Group considers all reasonable and evidenced information, including forward-looking information,
based on credit risk characteristics. When assessing the expected credit losses of receivables, they are
classified according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components
and not including significant financing components), the Group measures the provisions for loss based on the
amount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted
letters of credit) of financial institutions in notes receivable and accounts receivable, and related party
payments (related parties under the same control and significant related parties); dividends receivable,
interest receivable, reserve funds, investment loans, cash deposits (including warranty), government grants
(including dismantling subsidies) in other receivables, and receivables with significant financing components
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(i.e. long-term receivables);
②Evaluate expected credit losses based on customer credit characteristics and ageing combinations: in
addition to evaluating expected credit losses based on individual items, the Group evaluates the expected
credit losses of notes receivable and accounts receivable and other receivables financial instruments based on
customer credit characteristics and ageing combinations.
The Group considers all reasonable and evidenced information, including forward-looking information, when
assessing expected credit losses. When there is objective evidence that its customer credit characteristics and
ageing combination cannot reasonably reflect its expected credit loss, the current value of the expected future
cash flow is measured by a single item, and the cash flow shortage is directly written down the book balance
of the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial
instruments are impaired, such as the loan commitments and financial guarantee contracts that are not
measured at fair value through profit or loss, financial assets measured at fair value and whose changes are
recognized in other comprehensive income; other financial assets measured at amortized cost (such as other
current assets, other non-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract
rights of collecting cash flow of the financial assets is terminated; ②The financial assets has already been
transferred, and the Company has transferred almost all risks and remunerations of financial assets ownership
to the transferee; ③The financial assets has been transferred, even though the Company has neither
transferred nor kept almost all risks and remunerations of financial assets ownership, the Company has given
up controlling the financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership, nor given up controlling the financial assets, then confirm the relevant financial assets according
to how it continues to involve into the transferred financial assets and confirm the relevant liabilities
accordingly. The extent of continuing involvement in the transferred financial assets refers to the level of risk
arising from the changes in financial assets value faced by the enterprise.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between
the book value of the transferred financial assets and the sum of consideration received from transfer and
fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the current
profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value of
the transferred financial assets between the derecognized parts and the parts not yet derecognized according
to each relative fair value, and reckon the balance between the sum of consideration received from transfer
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should
be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the current
profits and losses.
When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financial
assets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assets
have been transferred. If almost all the risks and rewards of ownership of the financial assets have been
transferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards of
ownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all the
risks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judge
whether the company retains control over the assets, and conduct accounting treatment according to the
principles described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned into
current gains/losses and other financial liability at initially measurement. Financial liability shall be initially
recognized and measured at fair value. As for the financial liability measured by fair value and with variation
reckoned into current gains/losses, relevant trading costs are directly reckoned into current gains/losses while
other financial liability shall be reckoned into the initial amount recognized.
① the financial liability measured by fair value and with variation reckoned into current gains/losses
The conditions to be classified as trading financial liabilities and as financial liabilities designated to be
measured at fair value and whose changes are included in current profit or loss at the initial recognition are
consistent with the conditions to be classified as trading financial assets and as financial assets designated to
be measured at fair value and whose changes are included in current profit or loss at the initial recognition.
Financial liabilities measured at fair value and whose changes are included in current profit or loss are
subsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividends
and interest expense related to these financial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link to
the equity instruments that are not quoted in an active market and whose fair value cannot be reliably
measured, and the subsequent measurement is carried out in accordance with the cost. Other financial
liabilities are subsequently measured at amortized cost by using the effective interest method. The gain or
loss arising from derecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair value
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
through profit or loss is initially recognized at fair value, and its subsequent measurement is carried out by
the higher one between the amount confirmed in accordance with the Accounting Standards for Business
Enterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulated
amortization amount determined in accordance with the principle of Accounting Standards for Business
Enterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the current
obligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an
agreement to replace the existing financial liabilities with new financial liabilities, and if the contract terms
of the new financial liabilities are substantially different from the existing financial liabilities, terminated for
recognized the existing financial liabilities and at the same time recognize the new financial liabilities. If the
financial liability is terminated for recognized in whole or in part, the difference between the carrying
amount of the part that terminated for recognized and the consideration paid (including the transferred
non-cash assets or the assumed new financial liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and such
legal right is currently enforceable, and the Company plans to settle the financial asset on a net basis or to
realize the financial asset and settle the financial liability simultaneously, the financial asset and the financial
liability are presented in the balance sheet at their respective offsetting amounts. In addition, the financial
assets and financial liabilities are presented in the balance sheet separately, and are not offset against each
other.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract, and are
subsequently measured at fair value. Except for derivatives that are designated as hedging instruments and
are highly effective in hedging, the gains or losses arising from changes in fair value will be determined
based on the nature of the hedging relationship in accordance with the requirements of the hedge accounting
and be included in the period of profit and loss, other changes in fair value of derivatives are included in
current profits and losses. For a hybrid instrument that includes an embedded derivative, if it is not
designated as a financial asset or financial liability measured at fair value and whose changes are included in
current profit or loss, the embedded derivative does not have a close relationship with the main contract in
terms of economic characteristics and risks, and as with embedded derivatives, if the tools existing separately
conform to the definition of the derivatives, the embedded derivatives are split from the hybrid instruments
and are treated as separate derivative financial instruments. If it is not possible to measure the embedded
derivative separately at the time of acquisition or subsequent balance sheet date, the whole hybrid instrument
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
is designated as a financial asset or financial liability measured at fair value and whose changes are included
in current profits and losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the
deduction of all liabilities in the Group. The Company issues (including refinancing), repurchases, sells or
cancels equity instruments as movement of equity. No fair value change of equity instrument would be
recognized by the Company. Transaction costs associated with equity transactions are deducted from equity.
The Group's various distributions to equity instrument holders (excluding stock dividends) reduce
shareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made
semi-finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods
in process, mould and contract performance costs.
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for
raw materials, low-value consumption goods and stock goods. Switch-back cost of the current month is
adjusted by distribution price difference at the end of the month, the dispatched goods will share the cost
differences of inventory while in settlement the business income; and low-value consumption goods is
carried forward at once when being applied for use and the mould shall be amortized within one year after
receipt.
Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value. The
provision for inventory depreciation shall be drawn from the difference between the book cost of a single
inventory item and its net realizable value, and the provision for inventory depreciation shall be recorded into
the current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods to
customers, and this right depends on factors other than the passage of time. If the Company sells two clearly
distinguishable commodities to a customer and has the right to receive payment because one of the
commodities has been delivered, but the payment is also dependent on the delivery of the other commodity,
the Company shall take the right to receive payment as a contract asset.
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(2) Determination method and accounting treatment method of expected credit loss of contract assets
For the determination method for expected credit loss of contract assets, please refer to the above-mentioned
10. (3) Accounting treatment methods for financial instrument impairment. The Company calculates the
expected credit loss of contract assets on the balance sheet date, if the expected credit loss is greater than the
book value of provision for impairment of contract assets, the Company shall recognize the difference as an
impairment loss, debiting the "asset impairment loss" and crediting the "contract asset impairment provision".
On the contrary, the Company shall recognize the difference as an impairment gain and keep the opposite
accounting records.
If the Company actually incurs credit losses and determines that the relevant contract assets cannot be
recovered, for those approved to be written off, debit the "contract asset impairment reserve" and credit the
"contracted asset" based on the approved write-off amount. If the written-off amount is greater than the
provision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company’s assets related to contract costs include contract performance cost and contract acquisition
cost.
The contract performance cost is the cost incurred by the Company for the performance of the contract, those
that do not fall within the scope of other accounting standards and meet the following conditions at the same
time are recognized as as an asset as the contract performance cost: the cost is directly related to a current or
expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses),
costs clarified to be borne by the customer, and other costs incurred solely due to the contract; this cost
increases the Company's future resources for fulfilling the contract's performance obligations; this cost is
expected to be recovered.
Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those that
are expected to be recovered are recognized as the contract acquisition cost as an asset; if the asset
amortization period does not exceed one year, it shall be included in the current profit and loss when it occurs.
Incremental cost refers to the cost (such as sales commission, etc.) that will not incur if the Company doesn’t
obtain the contract. The Company’s expenses (such as travel expenses incurred regardless of whether the
contract is obtained) incurred for obtaining the contract other than the incremental costs expected to be
recovered are included in the current profits and losses when they are incurred, except those are clarified to
be borne by the customer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition of
commodity income related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
When the Company determines the impairment loss of assets related to the contract cost, it first determines
the impairment loss of other assets related to the contract that are confirmed in accordance with other
relevant accounting standards for business enterprises; then based on the difference between the book value
of which is higher than the remaining consideration that the Company is expected to obtain due to the
transfer of the commodity related to the asset and the estimated cost of transferring the related commodity,
the excess shall be provided for impairment and recognized as an asset impairment loss.
If the depreciation factors of the previous period changed later, causing the aforementioned difference to be
higher than the book value of the asset, the original provision for asset impairment shall be reversed and
included in the current profit and loss, but the book value of the asset after the reversal shall not exceed the
book value of the asset on the reversal date under the assumption that no impairment provision is made.
14. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment in
associates and investment in joint-ventures.
For long-term equity investments acquired through business combination under common control, the initial
investment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of the
combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
amount of net assets of the acquiree as of the combination date is negative, the investment cost of long-term
equity investment shall be zero. For long-term equity investment acquired through business combination not
under common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of
long-term equity investment acquired through cash payment, for which the actual payment for the purchase
shall be investment cost; If Long-term equity investments are acquired by issuing equity securities, fair value
of issuing equity investment shall be investment cost; for Long-term equity investments which are invested
by investors, the agreed price in investment contract or agreement shall be investment cost; and for long-term
equity investment which is acquired through debt reorganization and non-monetary assets exchange,
regulations of relevant accounting standards shall be referred to for confirming investment cost.
The Company adopts cost method for investment in subsidiaries, makes calculation for investments in
joint-ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its investment cost, and
cost of the investment is adjusted when making additional investment or writing off investment; When
calculated by equity method, current investment gains and losses represent the proportion of the net gains
and losses realized by the invested unit in current year attributable to or undertaken by the investor. When the
Company is believed to enjoy proportion of net gains and losses of invested unit, gains and losses
attributable to the Company according to its shareholding ratio is to computer out according to the
accounting policy and accounting period of the Company, on the basis of the fair value of various
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
recognizable assets of the invested unit as at the date of obtaining of the investment, after offset of gains and
losses arising from internal transactions with associates and joint-ventures, and finally to make confirmation
after adjustment of net profit of the invested unit. Confirmation on gains and losses from the long-term equity
investment in associates and joint-ventures held by the Company prior to the first execution day, could only
stand up with the precedent condition that debit balance of equity investment straightly amortized according
to its original remaining term has already been deducted, if the aforementioned balance relating to the
investment do exist.
In case that investor loses joint control or significant influence over investee due to disposal of part equity
interest investment, the remaining equity interest shall be calculated according to Accounting Standards for
Business Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the
fair value of the remaining equity interest as of the date when loss of joint control or significant influence and
the carrying value is included in current gains and losses. Other comprehensive income recognized in respect
of the original equity interest investment under equity method should be treated according to the same basis
which the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity
method calculation; and also switches to cost method for calculating the long-term equity investments which
entitles the Company to have conduct control over the invested units due to its additional investments; and
switches to equity method for calculating the long-term equity investments which entitles the Company to
conduct common control or significant influence, while no control over the invested units due to its
additional investments, or the long-term equity investments which entitles the Company with no control over
the invested units any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between it carrying value and effective price for
obtaining shall be recorded into current investment income. When disposing long-term equity investment
which is calculated by equity method, the proportion originally recorded in owners’ equity shall be
transferred to current investment income according to relevant ratio, except for that other movements of
owners’ equity excluding net gains and losses of the invested units shall be recorded into owners’ equity.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value by
its cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes and
other expenditure which is attributable to the assets directly; while cost of self-built investment real estate is
formed with all necessary expenditures occurred before construction completion of the assets arriving at the
estimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided
with average service life method pursuant to the predicted service life and net rate of salvage value. The
predicted service life and net rate of salvage value and annual depreciation are listed as follows:
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Predicted rate of salvage Depreciation rate per
Category Depreciation term(Year)
value (%) annual (%)
House and buildings 30-40 years 4%-5% 2.375%-3.20%
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital, the fixed assets or intangible assets shall switch to investment real estate commencing
from the date of such turning. In situation of switch, the carrying value before the switch shall be deemed as
the credit value after the switch.
When investment real estate is disposed, or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal, the Company shall terminate recognition of such investment real
estate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estate
after deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision of
services, rental or management of operations, have a useful life of more than one year and have a unit value
of more than 2,000 yuan.
Their credit value is determined on the basis of the cost taken for obtaining them. Of which, cost of
purchased-in fixed assets include bidding price and import duty and relevant taxes, and other expenditure
which occurs before the fixed assets arrive at the state of predicted utilization and which could be directly
attributable to the assets; while cost of self-built fixed asset is formed with all necessary expenditures
occurred before construction completion of the assets arriving at the estimated utilization state; credit value
of the fixed assets injected by investors is determined based on the agreed value of investment contracts or
agreements, while as for the agreed value of investment contracts or agreements which is not fair, it shall
take its fair value as credit value; and for fixed assets which are leased in through finance leasing, credit
value is the lower of fair value of leased assets and present value of minimized leasing payment as at the
commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For
those meeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost;
and for the part which is replaced, recognization of its carrying value shall cease; for those not meeting
requirements for recognization of fixed assets, they shall be accounted in current gains and losses as long as
they occur. When fixed asset is disposed, or no economic benefit would be predicted to obtain through
utilization or disposal of the asset, the Company shall terminate recognization of such fixed asset. The
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
amount of income from disposal, transfer, discarding as scrap or damage of fixed asset after deducting the
asset’ s carrying value and relevant taxation shall be written into current gains and losses.
The Company withdraws depreciation for all fixed assets except for those which have been fully depreciated
while continuing to use. It adopts average service life method for withdrawing depreciation which is treated
respectively as cost or current expense of relevant assets according to purpose of use. The depreciation term,
predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value year
1 House and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipment 8-12 years 4%-5% 7.92%-12.00%
End of each year, the Company makes re-examination on predicted service life, predicted rate of salvage value and depreciation
method at each year-end. Any change will be treated as accounting estimation change.
17. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward to
fixed assets according to the estimated value based on the construction budget, cost or actual construction
cost, and depreciation will be accrued from the next month, and the difference in the original value of fixed
assets shall be adjusted after the completion of the final accounting procedures.
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate,
and inventory which require more than one year of purchase, construction or production activities to reach
the intended usable or saleable state, the capitalization begins when the asset expenditure has occurred, the
borrowing expense have occurred, and the acquisition, construction or production activities necessary to
make the asset reach the intended usable or saleable state have begun; when the acquisition, construction or
production of assets that meet the capitalization conditions reaches the intended usable or saleable state, stop
the capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If an
asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or
production process, and the interruption lasts for more than 3 months, the capitalization of borrowing
expense shall be suspended until the acquisition, construction or production activities of the asset restart.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in current
period after deduction of the interest income arising from unutilized borrowing capital which is saved in
banks or deduction of investment income obtained from temporary investment; For recognization of
capitalized amount of common borrowing, it equals to the weighted average of the assets whose accumulated
expense or capital disburse is more than common borrowing times capitalization rate of occupied common
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
borrowing. Capitalization rate is determined according to weighted average interest rate of common
borrowing.
19. Right-of-use assets and lease liabilities
When the Company becomes the lessee of the lease contract and is entitled to receive almost all the
economic benefits arising from the use of the identified assets during the use period and is entitled to lead the
use of the identified assets during the use period, the leased assets shall be recognized as lease liabilities
according to the present value of the unpaid lease payments after deducting lease incentives (except for
short-term leases and low-value asset leases with simplified treatment), and the right-of-use assets shall be
recognized based on the sum of the present value of lease liabilities, the prepaid rents and the initial direct
expenses, and depreciation and interest expenses shall be recognized respectively. For short-term leases with
no purchase option within one year and lease contracts with a value of less than 40,000 yuan (excluding the
sublease or expected sublease of assets), we choose to follow the simplified treatment and record into the
related asset cost of or current profit and loss in accordance with the straight-line method during the lease
period.
Where both leasing and non-leasing businesses exist in the contract and can be split, financial accounting of
the leasing business shall be carried out according to the leasing standards. Where both leasing and
non-leasing businesses exist in the contract and cannot be split, integrate into the leasing business for
financial accounting according to the leasing standards.
It is necessary to judge whether the lease change can be confirmed as a single lease business, and those
meeting the conditions for confirmation of a single lease shall be confirmed separately. The present value of
lease liabilities shall be reassessed and measured if the single lease business does not meeting the conditions
for confirmation of a single lease or major events or changes within the control of the lessee occur, and adjust
the book value of the right-of-use assets accordingly. If the book value of the right-of-use assets has been
reduced to zero, but the lease liabilities still need to be further reduced, the lessee shall include the remaining
amount into the corresponding expenses of the current period.
When the Company becomes the lessor of a lease contract, the lease shall be divided into operating lease and
financial lease on the commencement date of the lease. Financial lease refers to a lease that substantially
transfers all the risks and rewards associated with the ownership of an asset. Operating lease refers to other
lease except finance lease. The rent of the operating lease is recognized as income during the lease term by
the straight-line method. The net investment of the lease shall be taken as the book value of the finance lease
receivables, and the net investment of the lease is the sum of the unsecured residual value and the present
value of the lease payments not received on the commencement date of the lease period.
20. Intangible assets
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
The Company’s intangible assets include land use rights, trademark rights and non-proprietary technology,
which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated at
actual cost based on the price actually paid and related other expenditure; the actual cost of an intangible
asset invested by an investor is determined at the value agreed in the investment contract or agreement,
except where the agreed value in the contract or agreement is not fair, in which case the actual cost is
determined at fair value.
The land use rights are amortized equally over the period from the commencement date of the grant; the
remaining intangible assets are amortized equally over the shortest of the estimated useful life, the
contractual beneficial life and the effective life as prescribed by law. Amortization is charged to the cost of
the relevant asset and to current profit or loss in accordance with the object of its benefit. The estimated
useful life and amortization method for intangible assets with finite useful lives are reviewed at the end of
each year and any changes are treated as changes in accounting estimates.
21. Research and development(R&D)
As for expenditure for research and development, the Company classifies it into expenditure on research
phase and development phase, based on nature of the expenditure and that whether the final intangible assets
formed by research & development is of great uncertainty. Expenditure arising during research should be
recorded in current gains and losses upon occurrence; expenditure arising during development is confirmed
as intangible assets when satisfying the following conditions:
-Completions of the intangible assets make it available for application or sell in technology;
-Equipped with plan to complete the intangible asset and apply or sell it;
-There is market for products produced with this intangible asset or the intangible asset itself;
-Have sufficient technology, financial resource and other resources to support development of the intangible
assets, and have ability to apply or sell the assets;
-Expenditure attributable to development of the intangible assets could be reliable measured.
Expenditure arising during development not satisfying the above conditions shall be recorded in current gains
and losses upon occurrence. Development expenditure which had been recorded in gains and losses in
previous period would not be recognized as assets in later period. Expenditure arising during development
phase which has been starting capitalization is listed in balance sheet as development expenditure, and
transferred to intangible assets since the project reaches at predicted utilization state.
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process and
intangible assets with limited service life. When the following indications appear, assets may be impaired,
and the Company would have impairment test. As for goodwill and intangible assets which have uncertain
service life, no matter there is impairment or not, impairment test shall be conducted at the end of every year.
If it is hard to make test on recoverable amount of single asset, test is expected to make on the basis of the
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
assets group or assets group portfolio where such asset belongs to.
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance is
recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, it
couldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of
fair value of assets net disposal expense and present value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located will
have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which
brings influence in calculating discount rate of present value of predicted future cash flow of assets, which
leads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside, terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatly
lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration received
or receivable from customers. Before the Company transfers the goods to the customer, if the customer has
paid the contract consideration or the Company has obtained the right to unconditionally receive the contract
consideration, the contract liability is recognized based on the received or receivable amount at the earlier
time point of the actual payment by the customer and the payment due.
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no common
control exceeding the attributable part or fair value of recognizable net assets of party invested or purchased
(obtained through business combination) as of acquisition day or purchase day.
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill
relating to associates and joint-ventures is included in carrying value of long-term equity investment.
25. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
employees or compensation to the termination of employment relationship such as short-term wages,
post-employment benefits, compensation for the termination of employment relationship and other long-term
employee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, social
insurances like medical insurance, work-related injury insurance and maternity insurance, housing fund,
labor union funds and staff education funds, short-term paid absence of duty, short-term profit sharing
scheme, and non-monetary benefits as well as other short-term remuneration. During the accounting period
when staff provides services, the short-term remuneration actually occurred is recognized as liabilities and
shall be included in current gains and losses or related asset costs according to the beneficial items.
Retirement benefits mainly consist of basic pension insurance, unemployment insurance and early-retirement
benefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employees
in respect of retirement benefits, or the rules or regulations established by the Company for providing
retirement benefits to employees. In particular, defined contribution plan means a retirement benefit plan,
pursuant to which, the Company makes fixed contribution to independent fund, upon which, and it is not
obliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than defined
contribution plan.
The early retirement policy for staff and workers of the Company is the compensation for encouraging staff
and workers to accept the reduction voluntarily. The employees make applications voluntarily, the two
parties sign the compensation agreement after approved by the Company and calculate the compensation
amount according to the compensation standard passed by the staff representative conference, and the
Company confirms it as dismiss welfare and reckons it in current profits and losses. As the Company
promises to adjust the treatment for early retiring staff and workers with the increase of social basic cost of
living allowances, the discount elements will not be considered for calculating the dismiss welfare.
26.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercial
acceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of the
following conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existing
obligation of the Company; performance of the obligation is likely to cause economic benefits to flow out of
the enterprise; the amount of the obligation is reliably measurable.
27. Principle of recognition of revenue and measurement method
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor providing income
and revenue from assignment of asset use rights.
The Company has fulfilled the performance obligations in the contract, that is, revenue is recognized when
the customer obtains control of the relevant goods or services.
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
If the contract contains two or more performance obligations, the Company will allocate the transaction price
to each individual performance obligation according to the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the date of the contract. The
revenue is measured according to the transaction price of each individual performance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receive due to
the transfer of goods or services to customers, excluding payments on behalf of third parties. The transaction
price confirmed by the Company does not exceed the amount at which the cumulatively recognized revenue
will most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. The
money expected to be returned to the customer will be regarded as a return liability and not included in the
transaction price. If there is a significant financing component in the contract, the Company shall determine
the transaction price based on the amount payable on the assumption that the customer pays in cash when
obtaining the control of the goods or services. The difference between the transaction price and the contract
consideration shall be amortized by the effective interest method during the contract period. On the starting
date of the contract, if the Company expects that the interval between the customer's acquisition of control of
the goods or services and the customer's payment of the price doesn’t exceed one year, the significant
financing components in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations
within a certain period of time, otherwise, it is to perform its performance obligations at a certain point in
time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and
the Company has the right to collect payment for the accumulated performance part of the contract during the
entire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
accordance with the performance progress during that period and determine the progress of performance in
accordance with the output method. When the performance progress cannot be reasonably determined, if the
cost incurred by the Company is expected to be compensated, the revenue shall be recognized according to
the amount of the cost incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether a customer
has obtained control of goods or services, the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
3) The Company has physically transferred the goods to the customer;
4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company’s right to receive consideration for goods or services that have been transferred to customers
are presented as contractual assets, which are impaired on the basis of expected credit losses. The Company’s
unconditional right to receive consideration from customers is shown as a account receivable. The obligation
to transfer goods or services to customers for which the Company has received consideration receivable from
them is shown as a contractual liability.
28. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilization
subsidies.Of which, asset-related government subsidy are government subsidy acquired by the Company for
the acquisition or other formation of long-term assets; government subsidy related to revenue are government
subsidy other than those related to assets. If the government document does not clearly specify the subsidy
object, the Company will judge according to the above-mentioned distinguishing principle. If it is difficult to
distinguish, it will be overall classified as a government subsidy related to income.
If government subsidies are monetary assets, they are measured according to the amount actually received.
For subsidies paid on the basis of a fixed quota standard, when there is conclusive evidence at the end of the
year that it can meet the relevant conditions stipulated by the financial support policy and is expected to
receive financial support funds, they are measured according to the amount receivable. If the government
subsidy is a non-monetary asset, it shall be measured at its fair value, when the fair value cannot be obtained
reliably, it shall be measured at its nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related government
subsidies that are recognized as deferred income are included in the current profit and loss in installments
according to the average life method during the useful life of the relevant assets.
If the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the
undistributed deferred income balance shall be transferred to the current profit and loss of asset disposal.
29. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)
between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be
recognized for the carry forward of unused deductible losses that it is probable that future taxable profits will
be available against which the deductible losses can be utilized. For temporary difference arising from initial
recognition of goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
difference arising from initial recognition of assets and liabilities occurred in the transaction related to
non-business combination which neither affect accounting profit nor taxable income (or deductible losses),
no corresponding deferred income tax assets and deferred income tax liabilities will be recognized. As of the
balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the
effective tax rate applicable to the period when recovery of assets or settlement of liabilities occur.
The Company recognizes deferred income tax assets to the extent of future taxable income tax which is
likely to be obtained to offset deductible temporary difference, deductible losses and tax credits.
30. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similar
transaction, the non-current assets or disposal group can be sold immediately at its current condition; 2) The
sale is likely to occur, that is, the Company has made resolution on the selling plan and obtained definite
purchase commitment, the selling is estimated to be completed within one year. Those assets whose disposal
is subject to approval from relevant authority or supervisory department under relevant requirements are
subject to that approval. Prior to the preliminary classification of non-current assets or disposal group as the
category of held-for-sale, the Company measures the carrying value of the respective assets and liabilities
within the non-current assets or disposal group under relevant accounting standards. For non-current asset or
disposal group held for sale, for which it is found that the carrying value is higher than its fair value less
disposal expense during the initial measurement or re-measurement on the balance sheet date, the carrying
value shall be deducted to the net amount of fair value less disposal expense, and the reduced amount shall be
recognized as impairment loss in profit or loss for the period, and provision of impairment of assets held for
sale shall be provided for accordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classified
as held for sale on the acquisition date when they meet the condition that “the selling is estimated to be
completed within one year” on the acquisition date, and are likely to satisfy other conditions of being
classified as the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposal
group classified as held for sale are measured at the lower of their initial measurement amount and the net
amount after their fair value less the selling expenses based on the assumption that such non-current assets or
disposal group are not classified as held for sale at the time of initial measurement. Except for the
non-current assets or disposal group acquired in a business combination, the difference arising from
considering the net amount of such non-current assets or disposal group after their fair value less the selling
expenses as the initial measurement amount is recorded in the current profit or loss.
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries, no matter
whether the Company retains part of the equity investment after selling investment in subsidiaries, the
investment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financial
statements of the parent company when the investment in subsidiaries proposed to be sold satisfies the
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
conditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall be
classified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance
sheet date increases, the amount previously reduced for accounting shall be recovered and reverted from the
impairment loss recognized after the asset is classified under the category of held for sale, with the amount
reverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classified
under the category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets, the carrying value of disposal group’s goodwill shall be
offset against first, and then offset against the book value of non-current assets according to the proportion of
book value of non-current assets.
If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date less
sales expenses increases, the amount reduced for accounting in previous periods shall be restored, and shall
be reverted in the impairment loss recognized in respect of the non-current assets which are applicable to
relevant measurement provisions after classification into the category of held for sale, with the reverted
amount charged in profit or loss for the current period. The written-off carrying value of goodwill and
impairment loss of non-current assets which is recognized prior to classification into the category of held for
sale shall not be reverted.
The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal group
held for sale will increase the book value in proportion of the book value of each non-current asset (other
than goodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated or
amortized, and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longer
meet the condition of being classified as held for sale or the non-current assets are removed from the disposal
group held for sale, they will be measured at the lower of the following: 1) the amount after their book value
before they are classified as held for sale is adjusted based on the depreciation, amortization or impairment
that should have been recognized given they are not classified as held for sale; 2) the recoverable amount.
(8) The unrecognized profits or loss will be recorded in the current profits or loss when derecognizing the
non-current assets or disposal group held for sale.
31. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed of
or is classified as held for sale, and satisfies one of the following conditions: (1) represents a separate major
line of business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of a
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
separate major line of business or geographical area of operations; and (3) is a subsidiary acquired
exclusively with a view to resale.
32. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses
include income tax in the current year and deferred income tax. The income tax associated with the events
and transactions directly included in the owners’ equity shall be included in the owners’ equity; and the
deferred income tax derived from business combination shall be included in the carrying amount of goodwill,
except for that above, the income tax expense shall be included in the profit or loss in the current period.
The income tax expense in the current year refers to the tax payable, which is calculated according to the tax
laws on the events and transactions incurred in the current period. The deferred income tax refers to the
difference between the carrying amount and the deferred tax assets and deferred tax liabilities at Current
Year-end recognized in the method of debit in the balance sheet.
33. Segment information
Business segment was the major reporting form of the Company, which divided into four parts:
air-conditioning, refrigerator & freezer & washing machine, small home appliance and others. The transfer
price among the segments will recognize based on the market price, common costs will allocated by income
proportion between segments except for the parts that without reasonable allocation.
34. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financial
statement which will affect the application of accounting policy and amounts of assets, liabilities, income and
expense. The actual condition may differ from the estimation. Constant evaluation is conducted by the
management in respect of the key assumption involved in the estimation and judgment of uncertainties.
Effect resulting from change of accounting estimation is recognized in the period the change occurs and
future periods.
The following accounting estimation and key assumption may result in material adjustment to the book value
of assets and liabilities in future period.
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of the net
realizable value lower than the cost of inventories. The net realizable value of the inventory of goods that are
directly used for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the
low-consumption goods, shall be determined by the amount of the estimated selling price of the inventory
minus the estimated selling expenses and relevant taxes. The net realizable value of the material inventory
held for production is determined by the amount of the estimated selling price of the finished product
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
produced minus the estimated cost to be incurred at the time of completion, the estimated selling expenses
and relevant taxes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipment which have
impairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable
amount of relevant assets and assets group shall be the present value of the projected future cash flow which
shall be calculated with accounting estimation.
If the management amends the gross profit margin and discount rate adopted in calculation of future cash
flow of assets and assets group and the amended gross profit margin is lower than the currently adopted one
or the amended discount rate is higher than the currently adopted one, the Company needs to increase
provision of impairment provision. If the actual gross profit margin is higher (or the discount rate is lower)
than the estimation of management, the Company can not transfer back the long term assets impairment
provision provided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate for
each future year. Realization of deferred income tax assets depends on whether a company is able to obtain
sufficient taxable income in future. Change of future tax rate and switch back of temporary difference could
affect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimation
may result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company, at least at the end of each accounting year, reviews the projected usable life and residual value
rate of fixed assets and intangible assets. The projected usable life and residual value rate are determined by
the management based on the historical experiences of similar assets by reference to the estimation generally
used by the same industry with consideration on projected technical upgrade. If material change occurs to
previous estimation, the Company shall accordingly adjust the depreciation expenses and amortization
expenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countryside
promotion activity for free for ten years. As to the maintenance expenses that may be increased arising from
such commitment, the Company has provided projected liabilities.
Taking into account the various uncertainties during the ten years, the Company considers no discount factor
of such projected liabilities. Instead, the Company reviews the parameters (probility, proportion, maintenance
expense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.
If obvious change is found, the Company will adjust the projected liabilities according to the latest
parameters so as to reflect the best estimation.
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
35. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and losses
according to other accounting rules.
Other comprehensive income items shall be reported in the following two classes under other relevant
accounting rules:
(1) Other comprehensive income items that can not be reclassified into gains and losses in future accounting
periods, mainly including changes arising from re-measurement of net liabilities or net assets under defined
benefit plan and interest in investee’s other comprehensive income which are measured under equity method
and which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting
periods upon satisfaction of required conditions, mainly includes the share of other comprehensive income
that is reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for in
accordance with the equity method and meet the specified conditions, the fair value changes occurred by the
debt investment that is measured at fair value and whose changes are included in other comprehensive
income, the difference between the original book value included in other comprehensive income and the fair
value when a financial asset measured at amortized cost is reclassified as a financial asset measured at fair
value and its changes are included in other comprehensive income, the loss provisions for financial assets
measured at fair value and whose changes are included in other comprehensive income, the gains or losses
generated from cash flow hedging instruments are part of effective hedging, and the differences in
conversion of foreign currency financial statements.
36. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
Content and reasons Approval procedure Note
In 2018, the Ministry of Finance amended the Accounting
Standards for Business Enterprise No.21- Lease, and the Company Relevant change of the accounting policy
implemented the relevant accounting standards in preparing its has been deliberated and approved by the
financial statements for the first half year of 2021 and in 7th session of 10th BOD
accordance with the relevant convergence provisions.
Items and amounts of the statement items materially affected are as follows:
Consolidated balance sheet Balance sheet of parent company
2020-12-31 2021-1-1 2020-12-31-
Item affected 2021-1-1
（before Amount （after （before Amount
adjusted adjusted （after changed）
changed） changed ） changed）
Right-of-use
9,818,834.44 9,818,834.44
assets
Account paid in
30,105,373.40 -35,070.34 30,070,303.06 39,571,728.09 39,571,728.09
advance
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Consolidated balance sheet Balance sheet of parent company
2020-12-31 2021-1-1 2020-12-31-
Item affected 2021-1-1
（before Amount （after （before Amount
adjusted adjusted （after changed）
changed） changed ） changed）
Lease liability 4,783,483.43 4,783,483.43
Non-current
liability due 407,825,150.74 5,000,280.67 412,825,431.41 407,141,888.08 407,141,888.08
within one year
(2) Change of significant accounting estimates: N/A
(3) Implementation of the new lease standard for 2021 (for the first time) adjusts the information on the
relevant items in the financial statements at the beginning of the year of implementation
Notes to the adjustment of consolidation and parent company’s balance sheet: in accordance with the new
lease standards exercise on 1 Jan. 2021. Adjust the amount of items related to the financial statements at the
beginning of the year of the first implementation based on the cumulative impact of the first implementation
of the new lease standards, without adjusting the comparable period information. For the operating lease
prior to the first execution date, the Company shall measure the lease liability according to the present value
of remaining lease payments discounted on the basis of the internal resource input interest rate on the first
execution date, and the right-of-use asset shall be adjusted according to the sum of the lease liability and the
prepayment. See index 36 (1) for the specific adjustment details.
(4) There are no retrospective adjustments to prior period data for the implementation of the new lease
standard from 2021 (for the first time)
V. Taxation
1. Major taxes and tax rates
Tax (expenses) Tax (expenses) base Tax (expenses) rate
VAT Income from sales of goods and from processing 13%, 9%, 6%, 5%, 3%
Urban maintenance and
Turnover tax 5% or 7%
construction tax
Education surcharge Turnover tax 3%
Local education
Turnover tax 2%
surcharge
Corporate income tax Taxable income 15%, 20%, 25%, 30%, 33%
Original book value of house property×(1-30%) or
House property tax 1.2% or 12%
annual rent income
Land use tax Actual land area used 1 Yuan/M2 to 15 Yuan /M2
Description of taxpayers with different corporate income tax rates:
155
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Name Income tax rate
Changhong Meiling Co., Ltd. 15%
Zhongke Meiling Cryogenic Technology Co., Ltd. 15%
Zhongshan Changhong Electric Co., Ltd. 15%
Sichuan Hongmei Intelligent Technology Co., Ltd. 15%
Mianyang Meiling Refrigeration Co., Ltd. 15%
Changhong Meiling Ridian Technology Co., Ltd. 15%
Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 15%
Hefei Meiling Nonferrous Metal Products Co., Ltd. 15%
Jiangxi Meiling Electric Appliance Co., Ltd. 15%
Sichuan Changhong Air-conditioner Co., Ltd. 15%
Anhui Tuoxing Technology Co., Ltd. 20%
Guangzhou Changhong Trading Co., Ltd 20%
Anhui Lingan Medical Equipment Co., Ltd 20%
Hefei Meiling Wulian Technology Co., Ltd 20%
CH-Meiling International (Philippines) Inc. 30%
Changhong Ruba Trading Company (Private) Limited 33%
2. Preferential tax
(1) On August 17, 2020, the company obtained the high-tech enterprise certificate numbered GR202034000222 approved by
the Anhui Provincial Department of Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial
Taxation Bureau of the State Administration of Taxation, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise
for three years term.
(2) On August 17, 2020, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the high-tech enterprise
certificate numbered GR202034000072 approved by the Anhui Provincial Department of Science and Technology, Anhui
Provincial Department of Finance, and Anhui Provincial Taxation Bureau of the State Administration of Taxation, and enjoys
15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(3) On December 9, 2020, the subsidiary Zhongshan Changhong Electric Co., Ltd., was included in the “Notice on Publicizing
the List of the Second Batch of High-tech Enterprises to be Recognized in Guangdong Province in 2020'' published by the
Office of the National High-tech Enterprise Certification Management Leading Group, and continues to enjoy 15% rate for the
income tax for State Hi-Tech Enterprise for three years term.
(4) The subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd. has passed the qualification of high-tech enterprise
certification on 9 December 2020, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(5) Subsidiary Mianyang Meiling Refrigeration Co., Ltd., belongs to the encouraged industry in the Industrial Structure
Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax for the Western Development,
and the corporate income tax is levied at a reduced tax rate of 15%, valid until December 31, 2030.
(6) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualification of high-tech
enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three
156
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
years term.
(7) The subsidiary Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed the qualification of high-tech
enterprise certification on 2 December 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three
years term.
(8) The subsidiary Hefei Meiling Nonferrous Metal Products Co., Ltd. has passed the qualification of high-tech enterprise
certification on 26 October 2018, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(9) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-tech enterprise certification
on 16 September 2019, and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(10) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., belongs to the encouraged industry in the Industrial
Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax for the Western
Development, and the corporate income tax is levied at a reduced tax rate of 15%, valid until December 31, 2030.
(11) The subsidiary Anhui Tuoxing Technology Co., Ltd., Anhui Lingan Medical Equipment Co., Ltd., Hefei Meiling Wulian
Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. are in compliance with the relevant standards for small and
medium-sized enterprises with meager profits in the “Notice on matters related to the implementation of preferential income
tax policy to support the development of small & medium-size enterprise and individual entrepreneurs” (Guoshui [2021] No.
8) of the Ministry of Finance and the State Administration of Taxation, and temporarily implements below policies: the part of
annual taxable income that does not exceed one million yuan is included in taxable income by 12.5% after a reduction, and
corporate income tax is paid at a tax rate of 20%; while the part of annual taxable income exceeds one million yuan but not
exceeding three million yuan is included in taxable income by 50% after a reduction, and corporate income tax is paid at a tax
rate of 20%, which is valid until December 31, 2022.
VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements’ figures disclosed below, unless otherwise specified,
“period-beginning” refers to Jan. 1, 2021; “period-end” refers to Jun. 30, 2021; “Current Period” refers to Jan.
1 to Jun. 30, 2021; “the last period” refers to Jan. 1 to Jun. 30, 2020; the currency is RMB.
1. Monetary fund
Item Ending balance Opening balance
Cash
89,912.16 35,088.07
Bank deposit 4,132,381,613.96 6,100,644,898.32
Other monetary fund 1,169,651,408.13 484,232,497.85
Interest receivable on deposit 8,396,333.53 9,874,305.74
Total 5,310,519,267.78 6,594,786,789.98
Including: total amount deposited in overseas 9,678,300.21 11,293,949.64
Total use of restricted funds 534,571,433.50 159,382,669.14
Other monetary fund:
Item Ending balance
Cash deposit 1,131,829,052.28
B share repurchase 26,606,274.19
Account of foreign currency for verification 10,372,374.03
157
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance
Co-managed account funds 503,933.87
Taobao account 256,846.75
Union Pay online 82,927.01
Total 1,169,651,408.13
Which serves as non cash and cash equivalents refers to the banking acceptance draft deposit with a term of over three months,
amounting to 484,617,499.63 yuan, forward locking deposit 50,000.00 yuan, the amount restricted for used in managed account
was 503,933.87 yuan, bank deposits of 49,300,000.00 yuan frozen due to litigation, China Union Pay, Taobao account and Ten
Pay are all third party payment platforms for the deposit of 100,000.00 yuan and interest receivable from deposits of
8,396,333.53 yuan, the remaining Monetary funds are treated as cash and cash equivalents.
Parts of the goods payment denominated in foreign currency should be transferred to reviewing accounts which may not be
used temporarily. Upon approval of such review, those payments may be transferred to general accounts. Due to the relatively
short time for reviewing foreign exchange, balance of the reviewing accounts is not limited on utilization.
2. Trading financial assets
Item Ending balance Opening balance
Financial assets measured at fair value and whose changes are included
755,672,778.49 47,242,339.07
in current gains/losses
Including: Derivative financial assets 28,746,156.57 47,242,339.07
Principal and interest of wealth management products 726,926,621.92
Trading financial assets refer to the RMB forward exchange fund in Current Period
3. Note receivable
(1) Category of note receivable
Item Ending balance Opening balance
Bank acceptance 110,365,130.06 13,023,329.01
Trade acceptance 335,880,000.00
123,550,518.22
Total 233,915,648.28 348,903,329.01
Less: bad debt provision 8,481,942.30
7,935,065.79
Book value 225,980,582.49 340,421,386.71
(2) Notes endorsement or discount and undue on balance sheet date
Amount derecognition at Amount without
Item
period-end derecognition at period-end
Bank acceptance 16,158,165.85
Trade acceptance
Total 16,158,165.85
(3) Notes transfer to account receivable due for failure implementation by drawer at period-end
158
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Amount of accounts receivable transferred at period-end
Trade acceptance 14,460,000.00
Total 14,460,000.00
(4) By accrual of bad debt provision
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
With bad debt provision
110,365,130.06 47.18% 300,000.00 0.27% 110,065,130.06
accrual on single item
Including: bank acceptance 110,365,130.06 47.18% 300,000.00 0.27% 110,065,130.06
With bad debt provision
123,550,518.22 52.82% 6.18% 115,915,452.43
accrual on portfolio 7,635,065.79
Including: trade acceptance 123,550,518.22 52.82% 7,635,065.79 6.18% 115,915,452.43
Total 233,915,648.28 100.00% 7,935,065.79 3.39% 225,980,582.49
(Continued)
Opening balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
With bad debt provision
13,023,329.01 3.73% 300,000.00 2.30% 12,723,329.01
accrual on single item
Including: bank acceptance 13,023,329.01 3.73% 300,000.00 2.30% 12,723,329.01
With bad debt provision
335,880,000.00 96.27% 8,181,942.30 2.44% 327,698,057.70
accrual on portfolio
Including: trade acceptance 335,880,000.00 96.27% 8,181,942.30 2.44% 327,698,057.70
Total 348,903,329.01 100.00% 8,481,942.30 2.43% 340,421,386.71
1) Note receivable withdrawal bad debt provision on single item
Ending balance
Name Bad debt Provision ratio
Book balance Provision reason
provision (%)
Bank acceptance Minimal risk, holding maturity
110,065,130.06
acceptance
Bank acceptance The bill has been collected by
300,000.00 300,000.00 100%
the bank
Total 110,365,130.06 300,000.00 — —
2) Note receivable withdrawal bad debt provision by combination
Account age Ending balance
159
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Note receivable Bad debt provision Provision ratio
Within 3 months (3 months included) 57,741,309.81 577,413.10 1.00%
More than 3 months and less than 6 months
61,041,889.96 6,104,189.00 10.00%
(6 months included)
More than 6 months and less than 1 year (1
4,767,318.45 953,463.69 20.00%
year included)
Total 123,550,518.22 7,635,065.79 —
(5) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed this period
Changes this period
Category Opening balance Withdrawal or Ending balance
Accrual Write-off Other
reversal
Bad debt
8,481,942.30 -546,876.51 7,935,065.79
provision
Total 8,481,942.30 -546,876.51 7,935,065.79
(6) No note receivable actually written off in this period.
4. Account receivable
(1) Category of account receivable by bad debt accrual
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
1,606,637,512.84 61.00% 24,560,360.79 1.53% 1,582,077,152.05
bad debt provision by single item
Including: current payment with related
1,411,296,917.53 53.58% 2,840,923.40 0.20% 1,408,455,994.13
party
Account receivable with letter of
173,621,157.92 6.60% 173,621,157.92
credit
Account receivable with single
100.00
minor amount but withdrawal single item 21,719,437.39 0.82% 21,719,437.39
%
bad debt provision
Account receivable withdrawal bad
1,027,276,092.39 39.00% 63,294,173.26 6.16% 963,981,919.13
debt provision by portfolio
Including: account receivable of
189,055,930.27 7.18% 13,940,083.40 7.37% 175,115,846.87
engineering customers
Receivables other than engineering
838,220,162.12 31.82% 49,354,089.86 5.89% 788,866,072.26
customers
Total 2,633,913,605.23 100.00% 87,854,534.05 3.34% 2,546,059,071.18
(Continued)
Opening balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
523,379,846.95 43.52% 25,905,935.37 4.95% 497,473,911.58
bad debt provision by single item
Including: current payment with related 397,745,724.79 33.07% 3,943,524.26 0.99% 393,802,200.53
160
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Opening balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
party
Account receivable with letter of
72,037,362.43 5.99% 72,037,362.43
credit
Account receivable with single
minor amount but withdrawal single item 53,596,759.73 4.46% 21,962,411.11 40.98% 31,634,348.62
bad debt provision
Account receivable withdrawal bad
679,107,003.09 56.48% 46,305,134.01 6.82% 632,801,869.08
debt provision by portfolio
Including: account receivable of
173,638,731.59 14.44% 13,008,672.00 7.49% 160,630,059.59
engineering customers
Receivables other than engineering
505,468,271.50 42.04% 33,296,462.01 6.59% 472,171,809.49
customers
Total 1,202,486,850.04 100.0% 72,211,069.38 6.01% 1,130,275,780.66
1) Account receivable that withdrawal bad debt provision by single item
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minor
single receivables, and withdrawal bad debt provision by combination shows no risk characteristic of the
receivables, 75 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Ending balance
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 47,284,652.60
More than 3 months and less than 6 months (6
41,097,523.45
months included)
Over 6 months and within one year (One year
50,196,962.50
included)
Over one year - within 2 years (2 years included) 37,745,416.52 7,549,083.30 20.00%
Over 2 years - within 3 years (3 years included) 12,680,750.20 6,340,375.10 50.00%
Over 3 years 50,625.00 50,625.00 100.00%
Total 189,055,930.27 13,940,083.40 —
B. Receivables other than engineering customers
Account age Ending balance
161
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 689,829,531.85 6,898,295.32 1.00%
More than 3 months and less than 6 months (6
72,215,232.06 7,221,523.21 10.00%
months included)
Over 6 months and within one year (One year
35,958,453.69 7,191,690.74 20.00%
included)
Over one year - within 2 years (2 years included) 19,154,913.13 9,577,456.57 50.00%
Over 2 years - within 3 years (3 years included) 12,984,536.83 10,387,629.46 80.00%
Over 3 years 8,077,494.56 8,077,494.56 100.00%
Total 838,220,162.12 49,354,089.86 —
(2) By account age
Account age Ending balance
Within 3 months (3 months included) 2,168,300,692.76
More than 3 months and less than 6 months (6 months
247,107,189.16
included)
Over 6 months and within one year (One year
97,272,963.59
included)
Over one year - within 2 years (2 years included) 67,934,834.51
Over 2 years - within 3 years (3 years included) 34,874,653.00
Over 3 years 18,423,272.21
Total 2,633,913,605.23
(3) Bad debt provision of accounts receivable this period
Changes this period
Category Opening balance Withdrawal or Ending balance
Accrual Write-off Other
reversal
Bad debt
72,211,069.38 16,898,006.47 1,228,611.25 25,930.55 87,854,534.05
provision
Total 72,211,069.38 16,898,006.47 1,228,611.25 25,930.55 87,854,534.05
(4) Account receivable actually written-off in Current Period: nil
(5) Pledge of accounts receivable at period-end: nil.
(6) Top five receivables collected by arrears party amounting to 1,719,453,354.68 yuan in total, accounted
162
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
for 65.28% of the receivables of Current Period-end, the bad debt provision accrual correspondingly
amounting to 20,824,326.64 yuan at period-end balance.
(7) No account receivable terminated recognition due to the transfer of financial assets
(8) No assets and liability transfer account receivable and continues to involve
5. Receivables financing
Item Ending balance Opening balance
Bank acceptance 1,132,467,568.98 1,632,388,702.83
Total 1,132,467,568.98 1,632,388,702.83
(1) Notes receivable already pledged that presented in receivables financing at the end of the period:
Item Amount pledged at period-end
Bank acceptance 440,912,836.95
Total 440,912,836.95
Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstanding
notes receivable to the bank. For details of the pledge of bills receivable, see Note VI. 59. Assets with restricted ownership or
use rights.
(2) Notes endorsement or discount and undue on balance sheet date at the end of the period
Amount derecognition at Amount without
Item
period-end derecognition at period-end
Bank acceptance 935,633,106.18
Total 935,633,106.18
6. Accounts paid in advance
(1) Age of account paid in advance
Ending balance Opening balance
Item
Amount Ratio （%） Amount Ratio （%）
Within one year 50,782,544.26 93.62% 29,388,065.57 97.73%
1-2 years 3,375,859.72 6.22% 393,517.42 1.31%
2-3 years 33,482.30 0.06% 25,000.00 0.08%
Over 3 years 54,314.62 0.10% 263,720.07 0.88%
Total 54,246,200.90 100.00% 30,070,303.06 100.00%
(2) Top 5 of account paid in advance in balance at period-end amounting to 39,328,333.92 yuan, accounted
for 72.50% of the account.
163
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
7. Other account receivable
Item Ending balance Opening balance
Other account receivable 119,579,871.70 145,705,978.26
Total 119,579,871.70 145,705,978.26
(1) Category of other account receivable
Nature Book balance at period-end Book balance at period-begin
Export rebate 33,524,889.53 32,281,664.19
Cash deposit 70,998,962.91 77,754,290.83
Loans of employee’s pretty cash 13,624,640.82 14,876,565.98
Related party not in consolidation statement 2,057,893.47 3,241,296.82
Advance money temporary 44,868.93 65,938.41
Other 216,853.56 18,375,974.37
Total 120,468,109.22 146,595,730.60
(2) Other account receivable bad debt reserves
First stage Second stage Third stage
Expected credit loss
Expected Expected credit loss
Bad debt provision for the whole Total
credit loss in for the whole
duration (credit
next 12 duration (no credit
impairment has
months impairment)
occurred)
Balance as at 1 Jan. 2021 839,752.34 50,000.00 889,752.34
Book balance of other account
receivable in Current Period as — — — —
at 30 Jun. 2021
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Period -1,514.82 -1,514.82
Reversal in Current Period
Conversion in Current Period
Write off in Current Period
Other change
Balance as at 30 Jun. 2021 838,237.52 50,000.00 888,237.52
164
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) By account age
Account age Ending balance
Within 3 months (3 months included) 57,004,480.08
More than 3 months and less than 6 months (6 months
3,577,905.93
included)
Over 6 months and within one year (One year
28,852,257.97
included)
Over one year - within 2 years (2 years included) 24,668,597.60
Over 2 years - within 3 years (3 years included) 2,048,710.92
Over 3 years 4,316,156.72
Total 120,468,109.22
(4) Top 5 other receivables collected by arrears party at balance of period-end:
Proportion in total Ending
Name Nature Ending balance Account age other receivables balance of bad
ending balance debt provision
SAT of Hefei Economic &
Within 3
Technological Development Tax rebate 32,398,824.33 26.89%
months
Zone
Development & Reform Over 6 months
Bureau of Qingyuan District, Cash deposit 16,400,000.00 and within one 13.61%
Baoding City year
Office of the lading group More than 3
for construction of new months and
Cash deposit 8,780,849.40 7.29%
socialist countryside in less than 6
Shunyi District months
Within 3
Housing and Urban-Rural months & more
Development Bureau in Cash deposit 5,862,175.00 than 6 months 4.87%
Anxin County and within 1
year
Housing and Urban-Rural Over 6 months
Development Bureau in Cash deposit 3,319,800.00 and within one 2.76%
Anguo City year
Total — 66,761,648.73 — 55.42%
(5) No other account receivable involved government subsidies
(6) No other receivables terminated recognition due to the transfer of financial assets
(7) No assets and liability transfer other receivables and continues to involve
8. Inventories
(1) Classification of inventories
165
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 210,601,097.48 8,902,221.77 201,698,875.71
Stock commodities 1,396,193,629.54 81,229,282.34 1,314,964,347.20
Low value consumable articles 4,662,174.09 918,669.46 3,743,504.63
Goods in transit 630,696,166.92 20,320,371.32 610,375,795.60
Goods-in-process 14,545,773.24 14,545,773.24
Contract performance cost 94,330,091.14 82,985.99 94,247,105.15
Deferred expense for mould 45,913,383.53 45,913,383.53
Total 2,396,942,315.94 111,453,530.88 2,285,488,785.06
(Continued)
Opening balance
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 153,887,580.62 9,729,874.26 144,157,706.36
Stock commodities 1,227,162,291.35 73,930,262.61 1,153,232,028.74
Low value consumable articles 5,946,757.68 916,206.67 5,030,551.01
Goods in transit 245,061,800.18 9,702,391.49 235,359,408.69
Goods-in-process 8,737,073.41 8,737,073.41
Contract performance cost 119,758,145.49 97,462.80 119,660,682.69
Deferred expense for mould 49,177,500.53 49,177,500.53
Total 1,809,731,149.26 94,376,197.83 1,715,354,951.43
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this period Decrease this period
Item Opening balance Reversal or Ending balance
Accrual Other Other
reselling
Raw materials 9,729,874.26 1,203,327.85 2,030,980.34 8,902,221.77
Stock
73,930,262.61 28,449,893.23 21,150,873.50 81,229,282.34
commodities
Goods in transit 9,702,391.49 13,649,336.15 3,031,356.32 20,320,371.32
Low value
consumable 916,206.67 4,603.21 2,140.42 918,669.46
articles
Contract
performance 97,462.80 3,205.98 17,682.79 82,985.99
cost
Total 94,376,197.83 43,310,366.42 26,233,033.37 111,453,530.88
(8) Accrual for inventory falling price reserves
166
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Reasons for the reversal or
Item Specific basis for determining of net realizable value
reselling in Current Period
Cost is higher than net realizable value (The processed products are
Raw materials For production
decline)
Stock Cost is higher than net realizable value (The market price at period-end
For sale
commodities fell)
Cost is higher than net realizable value (The market price at period-end
Goods in transit For sale
fell)
Low value
consumable Cost is higher than net realizable value Already used
articles
Contract Engineering construction Cost is higher than net realizable value (The
Already used
performance cost processed products are decline)
9. Other current assets
Item Ending balance Opening balance
Value-added tax to be deducted 198,735,885.46 181,882,278.05
Advance payment of income tax 2,898,546.47 9,506,261.78
Contract acquisition cost 13,584,231.77 4,511,132.31
Other unamortized expenses 4,120,927.62 2,453,792.84
Total 219,339,591.32 198,353,464.98
167
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
10. Long-term equity investment
Changes in Current Period
Ending
Other Other balance
Opening Additio Provisi Ending
Invested enterprise Investment profit comprehen chang Declaration of of
balance nal Disinve on for Othe balance
and loss confirmed sive es of cash dividends impair
investm stment impair r
by equity method income equit or profits ment
ent ment
adjustment y
Associated companies
1.Hefei Xingmei Assets Management Co.,
6,826,274.99 -467,024.04 6,359,250.95
Ltd.
2.Sichuan Zhiyijia Network Technology
39,163,339.54 -16,208,022.33 22,955,317.21
Co., Ltd. note 1
3.Hongyuan Ground Energy Heat Tech.
22,103,109.57 -924,784.75 21,178,324.82
Co., Ltd. note 2
4.Sichuan Tianyou Guigu Technology
2,850,091.51 -56,544.01 2,793,547.50
Co., Ltd. note 3
5.Chengdu Guigu Environmental Tech.
6,040,006.77 -245,929.49 5,794,077.28
Co., Ltd. note 4
6.ChanghongRuba
236,565.85 -236,565.85
ElectricCompany(Private)Ltd. note 5
7.Hefei Meiling Solar Energy Technology
1,617,928.00 1,617,928.00
Co., Ltd. note 6
Total 76,982,822.38 -16,047,810.77 -236,565.85 1,617,928.00 59,080,517.76
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controlling shareholder Sichuan Changhong Electric Co., LTD, targeting to jointly establish Sichuan
Zhiyijia Network Technology Co., Ltd. On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd was officially incorporated with registered capital of 50 million yuan, among which,
the Company made contribution of 15 million yuan with shareholding proportion of 30% and Sichuan Changhong Electric Co., LTD made contribution of 35 million yuan with shareholding
proportion of 70%. In 2019, the Company increase capital of 29,087,040.00 yuan (of which: 20 million yuan reckoned in registered capital and 9,087,040 yuan reckoned in capital reserves) to
Zhiyijia with shareholding ratio up to 50%.
168
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Note 2: subsidiary Sichuan Changhong Air Conditioner Co., Ltd (“Changhong Air Conditioner”) and Hengyouyuan Technology Development Group Co., Ltd. (“Hengyouyuan”) cooperated to
establish Hongyuan Ground Energy Heat Technology Co., Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan, among which, Changhong Air Conditioner
contributed 24.5 million yuan, accounting for 49% of the registered capital, and Hengyouyuan contributed 25.5 million yuan, accounting for 51% of the registered capital.
Note 3: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 with registered capital of 100 million yuan. Our subsidiary Changhong Air Conditioner made capital
contribution of RMB 25 million in cash, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 20 million yuan,
accounting for 20% of the registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capital contribution of 20 million yuan, accounting for 20% of the
registered capital. Mianyang Investment Holding (Group) Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya
Financial Information Service Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of the registered capital. Jiangsu Runye Investment Co., Ltd. made capital contribution of
10 million yuan, accounting for 10% of the registered capital. In November 2015, Jiangsu Runye Investment Co., Ltd. transferred all its 10% shares to Sichuan Shuye Jiachen Real Estate
Development Co., Ltd.;Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 15 million yuan, accounting for 15% of the registered capital. In November 2015, Chengdu Dongyu
Shangmao Co., Ltd. transferred all its 15% shares to Chengdu Dongyu No. 1 Enterprise Management Consulting Partnership (Limited Partnership). In 2016, shareholders meeting of Sichuan
Tianyou Guigu Technology Co., Ltd. agreed to reduce the 50 million Yuan capital, the shareholders are reducing the capital by ratio of share-holding. After capital reduction, subsidiary
Changhong Air conditioner contributed 12.5 million Yuan, representing 25% of the registered capital.
Note 4: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 with registered capital of 40 million yuan. Our subsidiary Changhong Air Conditioner made capital
contribution of 10 million yuan, accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 8 million yuan, accounting for 20%
of the registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capital contribution of 8 million yuan, accounting for 20% of the registered capital. Mianyang
Investment Holding (Group) Co., Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co.,
Ltd made capital contribution of 2 million yuan, accounting for 5% of the registered capital. Sichuan Shuye Jiachen Property Development Company made capital contribution of 4 million yuan,
accounting for 10% of the registered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 6 million yuan, accounting for 15% of the registered capital
Note 5: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint venture agreement with RUBA Comprehensive Trading Company in 2017, pursuant to which,
both parties agreed to increase capital contribution of US$ 1,130,191.00, among which, Zhongshan Changhong subscribed to contribute US$ 452,076.00 (equivalent to 3,001,649.02 yuan on the
169
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
actual contribution date) according to the original shareholding proportion of 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678,115.00 according to the
original shareholding proportion of 60%.
Note 6: Hefei Meiling Solar Energy Technology Co., Ltd. was incorporated on April 18, 2002, with a registered capital of 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limited
invested 3.1114 million yuan, accounting for 31.114% of the registered capital; Hefei Huayi Investment Co., Ltd. invested 4.972 million yuan, accounting for 49.72% of the registered capital;
Hefei Xingtai Asset Management Co., Ltd. invested 1.9166 million yuan, accounting for 19.166% of the registered capital.
170
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
11. Other non-current financial assets
Item Ending balance Opening balance
Sichuan Changhong Group Finance Co., Ltd. 500,000,000.00 500,000,000.00
Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00
Hongyun Fund 43,148,931.34 43,148,931.34
Total 548,148,931.34 548,148,931.34
12. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Total
I. Original book value
1.Opening balance 59,512,503.29 59,512,503.29
2.Increase this period 1,176,028.81 1,176,028.81
(1) Construction inprogresstransfer-in 1,176,028.81 1,176,028.81
3.Decrease this period
4.Ending balance 60,688,532.10 60,688,532.10
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 5,624,041.29 5,624,041.29
2.Increase this period 955,807.64 955,807.64
(1) Provision or amortization 955,807.64 955,807.64
3.Decrease this period
4.Ending balance 6,579,848.93 6,579,848.93
III. Impairment loss
IV. Book value
1. Ending book value 54,108,683.17 54,108,683.17
2. Opening book value 53,888,462.00 53,888,462.00
(2) No investment real estate measured by fair value at period-end.
(3) Particular about mortgage of investment property at period-end
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 5,795,017.72 2,245,626.65 3,549,391.07
(4) Investment real estate without property certification held
Reasons for failing to complete
Item Book value
property rights certificate
171
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Reasons for failing to complete
Item Book value
property rights certificate
J04workshop 29,092,598.29 Related property rights in procedure
J03workshop 18,676,006.90 Related property rights in procedure
J20 air compressor station workshop 1,234,175.06 Related property rights in procedure
J18 opening and closing office 571,364.79 Related property rights in procedure
Total 49,574,145.04
13. Fixed assets
Item Book value at period-end Book value at period-begin
Fixed assets 2,274,347,136.21 2,315,983,923.20
Disposal of fixed assets 75,875,517.11 75,875,517.11
Total 2,350,222,653.32 2,391,859,440.31
13.1 Fixed assets
(1) Fixed assets
Transport
Item House and buildings Machinery equipment Otherequipment Total
equipment
I. Originalbookvalue
1.Opening balance 1,662,291,191.07 1,728,214,888.97 34,401,220.30 203,184,998.75 3,628,092,299.09
2.Increasethis period 16,222,356.11 42,413,051.09 736,494.32 12,036,823.15 71,408,724.67
(1) Purchase 970,178.52 256,382.11 7,660,875.18 8,887,435.81
(2) Construction in
16,222,356.11 41,442,872.57 474,920.37 4,318,988.62 62,459,137.67
progresstransfer-in
(3) Inventory transfer in
48,681.99 48,681.99
forown use
(4) Increase in exchange
5,191.84 8,277.36 13,469.20
ratechanges
3.Decreasethisperiod 150,207.09 28,533,499.04 235,135.32 3,086,722.77 32,005,564.22
(1) Dispose or
24,715,265.82 235,135.32 3,086,722.77 28,037,123.91
retirement
(2) Transfer to
construction in 3,813,978.57 3,813,978.57
progress
(3) Temporary estimated
150,207.09 4,254.65 154,461.74
decrease
4.Ending balance 1,678,363,340.09 1,742,094,441.02 34,902,579.30 212,135,099.13 3,667,495,459.54
II. Accumulated
depreciation
1.Opening balance 351,313,535.78 856,306,300.29 19,765,302.96 82,704,782.54 1,310,089,921.57
2.Increasethis period 26,579,485.84 71,541,140.97 1,469,541.61 8,334,487.98 107,924,656.40
（1）Accrual 26,579,485.84 71,541,140.97 1,427,410.94 8,328,445.82 107,876,483.57
172
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Transport
Item House and buildings Machinery equipment Otherequipment Total
equipment
(2) Increase in exchange
42,130.67 6,042.16 48,172.83
ratechanges
3.Decreasethisperiod 23,684,040.00 141,102.29 2,442,688.84 26,267,831.13
(1) Dispose or
22,745,983.28 141,102.29 2,442,688.84 25,329,774.41
retirement
(2) Transfer to
construction in 938,056.72 938,056.72
progress
4.Ending balance 377,893,021.62 904,163,401.26 21,093,742.28 88,596,581.68 1,391,746,746.84
III.Impairment loss
1.Opening balance 1,877,839.70 140,614.62 2,018,454.32
2.Increasethis period
3.Decreasethisperiod 616,877.83 616,877.83
(1) Dispose or
616,877.83 616,877.83
retirement
4.Ending balance 1,260,961.87 140,614.62 1,401,576.49
IV Bookvalue
1.Ending bookvalue 1,300,470,318.47 836,670,077.89 13,808,837.02 123,397,902.83 2,274,347,136.21
2.Opening bookvalue 1,310,977,655.29 870,030,748.98 14,635,917.34 120,339,601.59 2,315,983,923.20
The new fixed assets in this period mainly due to the 62,459,137.67 yuan transfer from construction in
process; decrease of the fixed assets in Current Period mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at period-end.
(3) Fixed assets for collateral at period-end
Accumulated Impairment
Name Original book value Book value
depreciation provision
House and buildings 474,545,282.09 117,160,334.15 357,384,947.94
(4) No fixed assets leased through financing lease at period-end
(5) Fixed assets leased through operating lease at period-end
Accumulated Impairment
Item Original book value Book value
depreciation provision
House and buildings 42,544,605.32 10,253,003.46 32,291,601.86
Machinery
34,009,099.62 10,362,209.40 23,646,890.22
equipment
Other equipment 3,152,980.30 1,321,152.50 1,831,827.80
Total 79,706,685.24 21,936,365.36 57,770,319.88
173
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(6) Fixed assets without property certificate
Reason of not complete
Item Book value
the property certificate
4# makeshift shelter Related property rights in
4,597,552.10
procedure
II section canteen of living area Related property rights in
21,026,734.32
procedure
Related property rights in
Testing and experiment center building 39,263,160.93
procedure
Related property rights in
Refrigerator packaging, sorting, storage and transportation center 53,776,614.52
procedure
Related property rights in
Outsourcing workshop 13,505,765.84
procedure
Related property rights in
J01 workshop 28,514,098.92
procedure
Related property rights in
J02 workshop 30,763,846.28
procedure
Related property rights in
J05 evaporator and condenser workshop 26,828,625.32
procedure
Related property rights in
J06 central air-conditioner workshop 17,329,252.30
procedure
J07 electrical workshop Related property rights in
34,265,486.52
procedure
Related property rights in
J08 packing materials warehouse 4,489,884.40
procedure
Related property rights in
J09raw material warehouse 6,174,515.26
procedure
Related property rights in
J10raw material warehouse 4,823,660.24
procedure
Related property rights in
J11raw material warehouse 4,737,640.55
procedure
J15 house of refrigerant forklift Related property rights in
1,303,436.25
procedure
J16 chemical storage Related property rights in
1,170,502.00
procedure
J17 chemical storage Related property rights in
1,280,067.04
procedure
J19 main guard room Related property rights in
321,752.38
procedure
Related property rights in
J19a guard room 203,212.53
procedure
Related property rights in
J19d guard room 148,637.11
procedure
Related property rights in
J19e guard room 148,637.11
procedure
Related property rights in
J50 finished product warehouse 16,365,982.26
procedure
Related property rights in
J51 finished product warehouse 15,839,703.21
procedure
Related property rights in
J52 finished product warehouse 11,301,945.86
procedure
Related property rights in
J53 finished product warehouse 12,173,080.55
procedure
174
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Reason of not complete
Item Book value
the property certificate
Related property rights in
J54 finished product warehouse 11,320,928.79
procedure
Related property rights in
J55 finished product warehouse 10,370,030.58
procedure
Related property rights in
J56 finished product warehouse 10,370,030.58
procedure
Total 382,414,783.75
(7) No fixed assets held for sale at period-end
13.2 Disposal of fixed assets
Reasons for disposal
Item Ending balance Opening balance
transferred
Relocation for land
Relevant assets disposal for reserved lands 75,875,517.11 75,875,517.11
reserve
Pursuant to the urban planning requirements of the People’s Government of Hefei city, Hefei Land Reserve Center
plans to purchase and store the land use right of an integrated economic development zone of the Company located at
Longgang of Hefei with an area of 103,978.9 sq.m. (Approximately 155.9684 mu, Land Use Right Certificate No.:
Dong Guo Yong (2004) Zi No. 0200, the stated use of the land is for industrial purpose). The estimated consideration
for purchasing and storage is RMB74.48 million. The land is mainly used for the Company’s warehouse, product
finishing workshop and the factory of Zhongke Meiling. Pursuant to the purchasing and storage requirements of land
use right, the land will be purchased and stored with vacant possession. In April 2013, the Company completed the
relocation of occupants of the premises, and the net fixed assets in relation to the land will transfer as disposal,
accounting treatment will be conduct in line with relevant rules upon receiving of the relocation compensation.
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidong county,
the land reserve center of Feidong county will purchase and store the land use right of an economic development zone
located at Feidong county, Hefei city, which is owned by the Company’s subordinate companies, Equator Electric and
Equator Home Appliance, respectively, with an area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use Right
Certificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is for industrial purpose) and an area of
46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367, the stated
use of the land is for industrial purpose). The total consideration for purchasing and storage is approximately 36 million
yuan, of which the consideration for the land use right owned by Equator Electric and Equator Home Appliance is
approximately 10.59 million yuan and 25.41 million yuan, respectively. The Company has completed the relocation of
occupants of the premises, and the net fixed assets in relation to the land will transfer as disposal, accounting treatment
will be conduct in line with relevant rules upon receiving of the relocation compensation.
No impairment of relevant assets disposal for reserved lands at period-end.
14. Construction in progress
Item Ending balance Opening balance
Construction in progress 70,466,482.26 60,775,088.96
175
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Total 70,466,482.26 60,775,088.96
(1) Details of construction in progress
Ending balance Opening balance
Impai Impair
Item rment ment
Bookbalance Bookvalue Bookbalance Bookvalue
provis provisi
ion on
Overseas product
upgrade supporting box
shell line, door shell line
11,603,740.95 11,603,740.95 9,837,906.27 9,837,906.27
and some old product
competitiveness
improvement projects
Front-end expansion
project of Hefei base
with an annual output of 8,156,676.12 8,156,676.12 1,304,336.29 1,304,336.29
10 million refrigerator
cabinets
Meiling Living Area
Apartment Renovation 5,952,142.98 5,952,142.98 3,587,155.98 3,587,155.98
Project
Changhong Air
Conditioner- relocation
2,789,062.21 2,789,062.21 2,942,756.39 2,942,756.39
of production base and
upgrading & expansion
Construction of washing
2,511,504.38 2,511,504.38 3,097,203.54 3,097,203.54
machine plant
Zhongke Meiling ultra-low
temperature refrigerated 2,347,522.10 2,347,522.10
storage equipment
expansion project
2021 efficiency
improvement project of
2,003,938.07 2,003,938.07
large refrigerator
manufacturing plant
Project of the application
of MES system during 1,993,134.07 1,993,134.07 1,670,775.59 1,670,775.59
manufacturing
Planning and
Reconstruction Project of
1,542,167.91 1,542,167.91
Overseas Refrigerator
Manufacturing Plants
Aluminum tube continuous
1,345,132.74 1,345,132.74
extrusion production line
Meiling PLM Project 1,132,593.09 1,132,593.09
Fire-fighting facility
1,109,713.12 1,109,713.12
upgrade project
Technical transformation
project of Zhongshan 985,492.22 985,492.22 6,926,902.64 6,926,902.64
Changhong
Production efficiency
improvement project of 904,741.38 904,741.38 904,741.38 904,741.38
the Line C for the
176
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Impai Impair
Item rment ment
Bookbalance Bookvalue Bookbalance Bookvalue
provis provisi
ion on
overseas Refrigerator
Manufacture Company
Overseas inflated
evaporator products
704,143.91 704,143.91 685,133.49 685,133.49
transferred to Jiangxi
base production project
Industrial Internet
Changhong Meiling 673,336.60 673,336.60
Promotion Project
Equipment to be
476,783.77 476,783.77 386,124.34 386,124.34
installed
Construction of
laboratory 451,434.75 451,434.75 1,623,019.14 1,623,019.14
(inspection center)
Capacity enlargement
and technology
improvement project for 423,005.50 423,005.50 1,724,400.82 1,724,400.82
Air-conditioner
Company
The fourth-phase
unmanned vending
machine and large-volume
commercial cabinet 60,679.61 60,679.61 4,049,896.54 4,049,896.54
production line project of
the freezer manufacturing
company
New overseas case
2,404,757.10 2,404,757.10
molding line project
Other petty projects 23,299,536.78 23,299,536.78 19,629,979.45 19,629,979.45
Total 70,466,482.26 70,466,482.26 60,775,088.96 60,775,088.96
(2) Changes in significant construction in progress
Transfer to
Increase in fixed assets in
Book balance Other decrease Book balance Source of
Projects Current
at period-begin Current at period-end funds
Period
Period
Construction of
Self-rais
washing machine 3,097,203.54 2,634,420.54 3,220,119.70 2,511,504.38
ed/ Raise
plant
Construction of
laboratory
1,623,019.14 863,813.82 2,035,398.21 451,434.75 Raise
(inspection center
)
Changhong Air
Conditioner- Self-rais
relocation of 2,942,756.39 6,318,282.03 6,471,976.21 2,789,062.21
ed
production base
and upgrading &
177
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Transfer to
Increase in fixed assets in
Book balance Other decrease Book balance Source of
Projects Current
at period-begin Current at period-end funds
Period
Period
expansion
(Continued)
including: Interest
Proportion of Accumulated interest capitaliza
Budget (in 10
project Progres amount of capitalized tion rate
Projects thousand
investment in s interest amount of of
Yuan)
budget capitalization Current Current
Period Period
Construction of washing
machine plant 37,121.00 99.30% 99%
Construction of laboratory
10,748.00 86.77% 99%
(inspection center)
Changhong Air
Conditioner- relocation of
84,791.01 88.63% 99% 2,570,143.02
production base and
upgrading & expansion
15. Right-of-use assets
Item House building Total
I. Original book value
1.Opening balance 9,818,834.44 9,818,834.44
2.Increase this period 13,760,631.85 13,760,631.85
(1) Rent in 13,760,631.85 13,760,631.85
3.Decrease this period
4.Ending balance 23,579,466.29 23,579,466.29
II. Accumulated depreciation
1.Opening balance
2.Increase this period 3,296,977.97 3,296,977.97
(1) Accrual 3,296,977.97 3,296,977.97
3.Decrease this period
4.Ending balance 3,296,977.97 3,296,977.97
III. Provision for impairment
1.Opening balance
2.Increase this period
3.Decrease this period
4.Ending balance
IV. Book value
1. Ending book value 20,282,488.32 20,282,488.32
2. Opening book value 9,818,834.44 9,818,834.44
178
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
16. Intangible assets
(1) Intangible assets
Trademark Non-patent
Item Land use right Other Total
special right technology
I. Original book
value
1.Opening
869,724,297.57 283,292,439.34 532,983,550.68 61,676,492.32 1,747,676,779.91
balance
2.Increase this
29,041,182.12 32,198,081.53 61,239,263.65
period
(1) Internal
29,041,182.12 32,198,081.53 61,239,263.65
research
3.Decrease this
50,638,109.51 50,638,109.51
period
(1) Disposal 50,638,109.51 50,638,109.51
4.Ending balance 869,724,297.57 283,292,439.34 511,386,623.29 93,874,573.85 1,758,277,934.05
II. Accumulated
amortization
1.Opening
179,982,060.86 283,292,439.34 308,164,231.17 8,457,055.13 779,895,786.50
balance
2.Increase this
9,245,939.53 52,900,516.90 8,329,036.60 70,475,493.03
period
（1）Accrual 9,245,939.53 52,900,516.90 8,329,036.60 70,475,493.03
3.Decrease this
40,262,970.64 40,262,970.64
period
(1) Disposal 40,262,970.64 40,262,970.64
4.Ending balance 189,228,000.39 283,292,439.34 320,801,777.43 16,786,091.73 810,108,308.89
III. Provision for
impairment
1.Opening
26,420,977.43 4,508,495.33 30,929,472.76
balance
2.Increase this
period
3.Decrease this
10,375,138.87 10,375,138.87
period
(1) Disposal 10,375,138.87 10,375,138.87
4.Ending balance 16,045,838.56 4,508,495.33 20,554,333.89
IV. Book value
1. Ending book
680,496,297.18 174,539,007.30 72,579,986.79 927,615,291.27
value
2. Opening book
689,742,236.71 198,398,342.08 48,710,941.86 936,851,520.65
value
The intangible assets resulted from internal research takes 3.48% of the balance of intangible assets at
period-end
(2) No land use right without property certification done at period-end
179
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) Up to end of the Period, mortgage of intangible assets is as follows:
Name Property certificate serials Area(M2) Net book value Note
Land use
HGYJCZi No.: 0121 27,120.22 17,377,492.85
right
Wan (2019) Property right of Hefei No.:
Land use 1148244/1148249/1148243/1148240/1148248/11482
477,550.03 236,186,360.68
right 46/1148241/1148238/1149101/1148242/1148245/11
48239/1148237/1148250/1148247/1149102
Land use Wan (2019) Property right of Feixi County No.:
33,383.10 13,370,649.71
right 0061435/0061445
Wan (2019) Property right of Feixi County No.:
Land use
0061456/0061447/0061438/0061440/0061452/0061 82,850.51 18,413,709.09
right
450/0061430/0061657
Total 620,903.86 285,348,212.33
17. Development expense
Increase this period Decrease this period
Internal Included in Ending
Item Opening balance Confirmed as
development Oth current profits Oth balance
er intangible assets er
expenditure and losses
Technology
development 27,997,731.79 49,312,977.31 48,735.48 49,678,127.46 27,583,846.16
for Air-conditioner
Technology
development 45,030,709.77 35,276,613.99 11,561,136.19 68,746,187.57
for refrigerator
Total 73,028,441.56 84,589,591.30 48,735.48 61,239,263.65 96,330,033.73
18. Goodwill
(1) Original value of goodwill
Increase this period Decrease this period
Formatio Formatio
Invested enterprise Opening n from n from Ending balance
balance Other Other
enterprise enterprise
merger merger
Hefei Meiling Group Holdings
3,553,367.77 3,553,367.77
Limited
Total 3,553,367.77 3,553,367.77
(2) Impairment loss of goodwill
Invested enterprise Opening Increase this Ending
Decrease this period
balance period balance
180
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Accrual Other Accrual Other
Hefei Meiling Group
3,553,367.77 3,553,367.77
Holdings Limited
Total 3,553,367.77 3,553,367.77
Note: The Company’s goodwill has been fully accrued for impairment reserves at period-end.
19. Deferred income tax assets
(1) Deferred income tax assets without the offset
Ending balance Opening balance
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
124,677,573.63 18,701,636.02 122,853,362.96 18,427,787.28
from assets impairment
Deferred income tax assets recognized
23,102,517.39 3,465,377.61 55,035,910.31 8,255,386.55
from accrual liability
Deferred income tax assets recognized
11,752,793.14 1,762,918.97 13,326,014.64 1,998,902.20
from Dismission welfare
Deferred income tax assets recognized
101,553,424.88 15,233,013.73 107,392,156.36 16,108,823.46
from deferred income
Deferred income tax assets recognized from
452,903,790.07 67,931,658.90 545,833,222.08 81,874,983.31
ir-reparable losses
Accrued income tax assets 4,290,952.45 643,642.87 3,467,314.27 520,097.14
Total 718,281,051.56 107,738,248.10 847,907,980.62 127,185,979.94
The Company’s long-term equity investment impairment provisions are the investments in its subsidiary Meiling
Candy Washing Machine Co., Ltd., expected to be cancelled in 2021, and the Company also confirmed deferred income
tax assets while confirming the impairment provisions. The subsidiaries have unrecovered losses, at the consolidation
level, the deferred income tax assets recognized in the Company’s long-term equity investment impairment provisions
are adjusted to be the deferred income tax assets generated from the recoverable losses.
(2) Deferred income tax liabilities without the offset
Ending balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Recognized by fixed assets depreciation 27,081,715.20 4,062,257.28 29,817,828.77 4,472,674.32
Recognized by changes in fair value 19,054,056.75 2,858,108.51 40,686,053.41 6,102,908.01
Total 46,135,771.95 6,920,365.79 70,503,882.18 10,575,582.33
181
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 134,821,799.40 110,167,308.91
Deductible loss 941,947,487.33 880,692,110.28
Total 1,076,769,286.73 990,859,419.19
20. Short-term loans
Category Ending balance Opening balance
Loan in pledge 259,984,823.95 100,000,000.00
Guaranteed loan 23,160,000.00 66,180,000.00
Loan in credit 583,901,500.00 904,237,500.00
Bill financing 257,880,000.00
Interest payable 2,236,871.73 7,911,550.55
Total 869,283,195.68 1,336,209,050.55
Short-term loans at Current Period-end:
1) The Company entered into a Forfaiting Business Contract with Hefei Shouchun Branch of BCM with 360 days in
term. Term of borrowing is from 29 Sept. 2020 to 24 Sept. 2021. Fixed annual interest rate of 3%, the loan amount is
200,000,000.00 Yuan.
2) The Company entered into a Forfaiting Business Contract with Anhui Branch of Bank of Communications Co., Ltd.
with 237 days in term. Term of borrowing is from 30 Mar. 2021 to 22 Nov. 2021. Fixed annual interest rate of 3.40%,
the loan amount is 59,984,823.95 Yuan.
3) The Company entered into a Loan Contract with Hefei Branch of Ping An Bank Co., Ltd. with 364 days in term.
Term of borrowing is from 14 Dec. 2020 to 13 Dec. 2021. Fixed annual interest rate of 3.35%, the loan amount is
10,000,000.00 Yuan.
4) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 362 days in
term. Term of borrowing is from 4 Mar. 2021 to 1 Mar. 2022. Fixed annual interest rate of 3.45%, the loan amount is
30,000,000.00 Yuan.
5) The Company entered into Cross-border Participation in Financing Business Financing Notice with Hefei Baohe
District Branch of Agricultural Bank of China Co., Ltd. with 180 days in term. Term of borrowing is from 5 Mar. 2021
to 1 Spet. 2021. Fixed annual interest rate of 2.66%, the loan amount is 99,500,000.00 Yuan.
6) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of China
Limited with 179 days in term. Term of borrowing is from 12 Mar. 2021 to 7 Spet. 2021. Fixed annual interest rate of
3.63%, the loan amount is 25,000,000.00 Yuan.
7) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with Hefei
Economic Development Zone Branch of Huishang Bank Co., Ltd. with 359 days in term. Term of borrowing is from 16
Mar. 2021 to 10 Mar. 2022. Fixed annual interest rate of 3.35%, the loan amount is 30,000,000.00 Yuan.
8) The Company entered into a Cross-border financing loan business contract with Hefei Luyang Branch of China
Construction Bank Corporation with 12 months in term. Term of borrowing is from 24 Mar. 2021 to 23 Mar. 2022.
Loan rate of 3.55%, the loan amount is 100,000,000.00 Yuan.
9) The Company entered into a Contract for Loans of Working Capital with Anhui Branch of Bank of China with 184
182
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
days in term. Term of borrowing is from 27 May 2021 to 27 Nov. 2021, and counted from the actual withdrawal date,
every 6 months is a floating period, current annual interest rate of 3.30%, the loan amount is 100,000,000.00 Yuan.
10) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with Hefei
Economic Development Zone Branch of Huishang Bank Co., Ltd. with 179 days in term. Term of borrowing is from 25
Jun. 2021 to 21 Dec. 2021. Fixed annual interest rate of 2.80%, the loan amount is 20,000,000.00 Yuan.
11) The Company entered into Contract for the assignment of the seller’s claims without recourse (domestic forfaiting
business) under a domestic letter of credit with Hefei Branch of China Everbright Bank Co., Ltd. Term of borrowing is
from 25 Jun. 2021 to 21 Dec. 2021. Loan rate of 2.70%, the loan amount is 100,000,000.00 Yuan.
12) The Company entered into Domestic Letter of Credit Trade Financing Line of Credit Contract with Hefei Branch of
China Guangfa Bank Co., Ltd. Term of borrowing is from 29 Jun. 2021 to 27 Dec. 2021. Loan rate of 3.05%, the loan
amount is 17,500,000.00 Yuan.
13) The Company entered into a Contract for Loans of Working Capital with Hefei Baohe District Branch of
Agricultural Bank of China Co., Ltd. with 182 days in term. Term of borrowing is from 25 Jun. 2021 to 24 Dec. 2021,
and counted from the actual withdrawal date, 6-month floating interest rate composed of 6-month LIBOR + 0.45%
spread, current interest rate of 0.61525%, the loan amount is USD 15,000,000.00.
14) Subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a working capital loan contract with
Hefei Branch of Bank of China. Term of borrowing is from 25 Nov. 2020 to 25 Nov. 2021. Fixed interest rate of 3.3%,
the loan amount is 10,000,000.00 Yuan.
15) Subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. entered into a RMB Capital Loan Contract with
Huaining Road Branch of Hefei Science and Technology Rural Commercial Bank. Term of borrowing is from 31 Mar.
2021 to 30 Mar. 2022. Fixed interest rate of 3.85%, the loan amount is 5,000,000.00 Yuan.
16) Anhui Tuoxing Technology Co., Ltd., a wholly-owned subsidiary of Zhongke Meiling Cryogenic Technology Co.,
Ltd., entered into a working capital loan contract with Hefei Branch of Bank of China. Term of borrowing is from 1
Apr.. 2021 to 31 Mar. 2022. Fixed interest rate of 3.65%, the loan amount is 5,000,000.00 Yuan.
17) Subsidiary Changhong Ruba Trading Company(Private) Limited applied for a short-term loans of 400,000,000.00
Rupees to Lahore Branch of ICBC, loans term is from 17 December 2020 to 5 November 2021 with repayment of
principal in installments. As of the reporting period, Pakistani subsidiary has repaid the principal of Rs. 200,000,000.00
and the remaining outstanding principal Rs. 200,000,000.00 is borrowed at an interest rate of 0.9% over the lending
rate issued by the Central Bank of Pakistan.
21. Trading financial liability
Name Ending balance Opening balance
Trading financial liability 2,746,170.22 4,584,076.51
Including: Derivative financial liability 2,746,170.22 4,584,076.51
22. Note payable
Item Ending balance Opening balance
Bank acceptance 4,754,969,589.72 4,232,731,220.17
Trade acceptance 233,384,300.00 206,876,762.17
Total 4,988,353,889.72 4,439,607,982.34
183
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
23. Account payable
(1) Account payable
Item Ending balance Amount at year-begin
Total 3,669,199,259.64 2,851,999,684.30
Including: Amount aged over 1 year 52,848,517.19 74,369,337.19
(2) No major account payable with over one year book age at period-end.
24. Contract liabilities
Item Ending balance Opening balance
Total 344,400,472.19 522,550,891.28
Including: Amount aged over 1 year 19,193,682.89 91,437,631.00
25. Wages payable
(1) Category
Item Opening balance Increase this period Decrease this period Ending balance
Short-term compensation 262,858,303.46 711,775,979.24 783,367,463.54 191,266,819.16
After-service welfare- defined
23,650,290.96 71,818,678.72 92,960,358.49 2,508,611.19
contribution plans
Dismiss welfare 3,813,181.63 2,073,812.28 2,838,920.78 3,048,073.13
Total 290,321,776.05 785,668,470.24 879,166,742.81 196,823,503.48
(2) Short-term compensation
Item Opening balance Increase this period Decrease this period Ending balance
Wages, bonuses, allowances and
246,130,770.29 619,152,779.93 681,211,248.26 184,072,301.96
subsidies
Welfare for workers and staff 1,156,146.23 20,433,826.75 21,353,532.55 236,440.43
Social insurance 10,194,113.84 31,499,514.77 40,594,845.01 1,098,783.60
Including: Medical insurance 9,491,779.25 28,451,042.96 36,943,294.26 999,527.95
Work injury insurance 461,693.28 2,125,308.74 2,567,467.80 19,534.22
Maternity insurance 240,641.31 923,163.07 1,084,082.95 79,721.43
Housing accumulation fund 4,900,053.99 39,030,044.60 38,722,676.19 5,207,422.40
Labor union expenditure and
477,219.11 1,659,813.19 1,485,161.53 651,870.77
personnel education expense
Total 262,858,303.46 711,775,979.24 783,367,463.54 191,266,819.16
184
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(3) Defined contribution plans
Item Opening balance Increase this Decrease this Ending balance
period period
Basic endowment insurance 21,115,136.67 68,912,405.91 89,308,840.17 718,702.41
Unemployment insurance 2,535,154.29 2,906,272.81 3,651,518.32 1,789,908.78
Total 23,650,290.96 71,818,678.72 92,960,358.49 2,508,611.19
26. Tax payable
Item Ending balance Opening balance
Value-added tax 63,255,410.89 41,769,712.31
Enterprise income tax 12,811,692.22 9,941,386.84
Individual income tax 2,116,661.65 2,781,283.48
Urban maintenance and construction
5,297,973.23 4,056,939.25
tax
Real estate tax 3,837,356.88 6,370,190.14
Land use tax 1,551,010.83 2,701,128.78
Educational surtax 3,801,773.07 2,977,254.61
Stamp tax 2,917,008.35 2,213,950.91
Construction fund of Water
582,690.92 643,321.87
Conservancy Projects
Treatment fund for abandon electrics
19,946,703.00 13,835,511.00
& electronics
Other 3,601,429.93 2,391,754.71
Total 119,719,710.97 89,682,433.90
26. Other account payable
Item Ending balance Opening balance
Dividend payable 19,567,820.81 4,466,628.25
Other account payable 858,847,066.64 720,235,058.47
Total 878,414,887.45 724,701,686.72
27.1 Dividends payable
Item Ending balance Opening balance
Sichuan Changhong Electric Co., Ltd. 12,422,886.20
185
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Hefei Industry Investment Holding (Group) Co., Ltd. 2,391,170.05
China Life Insurance (Group) Company 288,404.82 263,813.22
China Life Insurance Group Co., Ltd. 432,607.23 395,719.83
BOC- Fullgoal Tianyi Securities Investment Fund 153,697.50 153,697.50
Hefei Branch of BOC 360,506.00 329,766.50
Hefei collective industry association 360,505.44 329,765.99
Entrust Investment Wuhu of Provincial ABC 288,404.82 263,813.22
Other units 2,869,638.75 2,730,051.99
Total 19,567,820.81 4,466,628.25
27.2 Other account payable
(1) Other account payable by nature
Nature Ending balance Opening balance
1.Accrued expenses (expenses occurred without reimbursed) 436,862,092.27 387,297,440.24
2. Receivables received temporary and deducted temporary 35,919,383.77 30,995,522.33
3.Deposit, margin 164,355,310.79 163,264,455.70
4.Not the come-and-go with related parties in statement scope 218,998,430.45 126,828,746.47
5. Other 2,711,849.36 11,848,893.73
Total 858,847,066.64 720,235,058.47
(2) At end of Current Period, the major other account payable with account age over one year mainly
refers to the sale of margin.
28. Non-current liability due within one year
Item Ending balance Opening balance
Long-term loan principal and interest due within one year 413,561,652.50 407,141,888.08
Long term account payable due within one year 520,519.27 683,262.66
Lease liabilities due within one year 7,581,525.67 5,000,280.67
Total 421,663,697.44 412,825,431.41
29. Other current liabilities
Item Ending balance Opening balance
Pending sales tax 22,195,014.96 20,376,696.94
Factoring fees payable 906,702.57 2,547,001.79
Total 23,101,717.53 22,923,698.73
186
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
30. Long term borrowings
(1) Category of long term borrowings
Category Ending balance Amount at year-begin
Loan in mortgage 178,000,000.00 188,000,000.00
Interest payable
231,439.30
Total 178,000,000.00 188,231,439.30
(2) Long-term borrowings at period-end
Forei
Borrowing Returning gn Interest Ending balance Opening
Loan from
day day curre rate (RMB) balance (RMB)
ncy
EIBC (Export-Import Bank)
2019/12/23 2026/11/25 RMB 4.455% 80,000,000.00 90,000,000.00
Anhui Province Branch Note 1
EIBC (Export-Import Bank)
2020/3/26 2026/11/25 RMB 4.455% 98,000,000.00 98,000,000.00
Anhui Province Branch Note 2
Total 178,000,000.00 188,000,000.00
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with
the Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and intangible
assets are used as mortgage for the loan. The term of the loan is from December 23, 2019 to November 25, 2026, the
interest rate of the loan is determined according to the market quotation rate of the loan with a term of more than 5
years reduced by 0.195%, which fluctuates annually, and the amount of the loan is 100,000,000.00 yuan. According to
the repayment plan agreed with the bank, the Company has repaid 6,000,000.00 yuan. It plans to repay 4,000,000.00
yuan on December 25, 2021 and repay 10,000,000.00 on June 25, 2022, a total of 14,000,000.00 yuan has been
reclassified to non-current liabilities due within one year. The ending balance is 80,000,000.00 yuan.
Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with
the Export-Import Bank of China Anhui Branch, the Company's investment real estate, fixed assets and intangible
assets are used as mortgage for the loan. The term of the loan is from 26 March 2020 to 25 November 2026, the interest
rate of the loan is determined according to the market quotation rate of the loan with a term of more than 5 years
reduced by 0.195%, which fluctuates annually, and the amount of the loan is 98,000,000.00 yuan. Balance at period-end
amounted to 98,000,000.00 yuan.
31. Lease liability
Item Ending balance Opening balance
House building 12,529,575.32 4,783,483.43
Total 12,529,575.32 4,783,483.43
187
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
32. Long-term payable
Item Ending balance Opening balance
Long-term account payable 175,323.91
Special payable 1,433,821.62 1,530,000.00
Total 1,433,821.62 1,705,323.91
32.1 Classify by nature
Nature Ending balance Opening balance
Financing lease 175,323.91
32.2 Special payable
Opening Increase this Decrease Ending
Item Reason
balance period this period balance
Special funds for
Technology plan
technological
1,530,000.00 96,178.38 1,433,821.62 project in Zhongshan
transformation from
City
Zhongshan Changhong
33. Long-term wage payable
Item Ending balance Opening balance
Dismissal welfare 9,175,955.85 10,571,526.69
According to the internal early retirement policy, the long-term payable dismissal welfare bears by the
Company up to end of Current Period amounting to 9,175,955.85 yuan
34. Accrual liability
Item Ending balance Opening balance Reason
note1
Product quality guarantee 10,531,572.82 14,487,294.50 Guarantee of product
note1
Guarantee fund for quality service 12,570,944.57 47,905,440.57 Guarantee of product
Total 23,102,517.39 62,392,735.07
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy, while
quality service special guarantees capital is the warranty costs provided for product quality in addition to such policy.
Parts of the commitments on product quality assurance beyond the national three guarantees policy are expired in
Period, the accrual liability that have not been anticipated has written-off in Current Period, actually 35,187,360.00
Yuan written-off.
35. Deferred income
(1) Classification of deferred income
188
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Opening Increase this Decrease this Ending
Item Reason
balance period period balance
Government
subsidies---subsidies of 136,876,337.09 3,446,100.00 11,511,555.00 128,810,882.09
development project
Government
subsidies---subsidies of 40,501,113.03 1,959,072.83 38,542,040.20
Relocation
Total 177,377,450.12 3,446,100.00 13,470,627.83 167,352,922.29
(2) Government subsidy
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
Demonstration factory
construction for the
intelligent
49,500,000.00 3,132,911.40 46,367,088.60 Assets related
manufacturing of
intelligent
air-conditioner
Demolition
compensation of 38,316,384.47 1,069,128.53 37,247,255.94 Assets related
Changhong Meiling
Adaptability
improvement on
9,459,926.70 1,182,490.86 8,277,435.84 Assets related
new coolants
production
Centre for external
cooperation of the
7,614,900.00 846,100.00 257,877.27 8,203,122.73 Assets related
environmental
protection
Subsidy for
industrial
development policy 7,794,000.00 625,000.00 7,169,000.00 Assets related
from Hefei for first
half of 2018
Changhong Air
Conditioner-
relocation of
6,880,000.00 6,880,000.00 Assets related
production base and
upgrading &
expansion
Key chip and module
for transducer used
6,840,000.00 6,840,000.00 Assets related
and detection capacity
building
Policy funds for
manufacturing a
strong province,
subsidy for equipment 3,750,000.00 312,500.00 3,437,500.00 Assets related
for the technological
transformation of
industrial strong base
RESEARCH AND 4,462,790.72 704,651.16 3,758,139.56 Assets related
APPLICATION OF
189
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
THE VISA
(VARIABLE
FREQUENCY
VOLUME
INTEGRATED
INTELLIGENT
AIR-CONDITIONER)
Special fund,
government subsidy 4,200,000.00 4,200,000.00 Assets related
CZ059001
Subsidy for industrial
development policy
5,365,650.00 447,137.50 4,918,512.50 Assets related
from Hefei for second
half of 2019
Subsidy for industrial
development policy
3,440,583.33 217,300.00 3,223,283.33 Assets related
from Hefei for first
half of 2020
Government subsidy
for new plant
construction -
3,291,666.67 250,000.00 3,041,666.67 Assets related
industrialization of
cryogenic refrigeration
equipment
Subsidies for
intelligent
transformation &
upgrading of
3,280,739.58 302,837.50 2,977,902.08 Assets related
enterprises from the
new industrialization
policy in economic
development zone
2020 Triple One
Innovation Project in 54,166.67 2,545,833.33 Assets related
2,600,000.00
Anhui Province
Industrialization of
intelligent white
household appliances
software platform and 2,303,030.33 363,636.36 1,939,393.97 Assets related
typical application
research and
development
Research and
application of the
2,300,000.00 2,300,000.00 Assets related
MCU chip for inverter
control
Special funds for
strategic emerging
2,000,000.00 2,000,000.00 Assets related
industry and high-end
growth industry
Equipment subsidy for
the industrial base
technical renovation
1,547,083.33 117,500.00 1,429,583.33 Assets related
from Economic and
Information
Commission
190
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
Demolition
compensation of 2,184,728.56 889,944.30 1,294,784.26 Assets related
Jiangxi Meiling
Subsidy from
Zhongshan Finance
Bureau (CZ028001 1,397,706.70 152,823.24 1,244,883.46 Assets related
provincial special
project 2019)
Upgrade project for
the production line of
Mianyang Meiling 1,316,666.72 98,749.98 1,217,916.74 Assets related
Intelligent
Refrigerator
Subsidy for equipment
purchasing for Hefei
1,179,470.00 89,580.00 1,089,890.00 Assets related
Tech. Improvement
project in 2017
Promotion of the
energy-saving room 858,762.97 105,154.62 753,608.35 Assets related
air conditioner
Subsidy for purchase
of R & D instruments 882,105.20 91,056.26 791,048.94 Assets related
and equipment
Emerging Industry
Base Fund Support 620,000.00 620,000.00 Assets related
Item
Promoting the new
industry ( annual
output of 0.6 million
medium& large
761,031.21 152,206.26 608,824.95 Assets related
volume
environmental
protection and energy
saving freezer)
Robot policy-rewards
555,156.26 35,062.50 520,093.76 Assets related
for purchasing robots
2018 Zhongshan
Special fund for
industrial development
464,508.75 132,861.90 331,646.85 Assets related
- Special topic of
technical
transformation
Technical
transformation of the 869,687.52 474,375.00 395,312.52 Assets related
Athena project
Special fund for
416,912.46 48,004.50 368,907.96 Assets related
technical improvement
Technical
transformation of
refrigerator 551,324.77 44,829.00 506,495.77 Assets related
evaporator
workshop
Technical
209,218.33 15,889.98 193,328.35 Assets related
transformation subsidy
191
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
New Amount
Assets
Opening subsidy in reckoned into Other Ending
Item related/Income
balance Current other income in changes balance
related
Period Current Period
Technical renovation
of air conditioner 190,767.27 30,601.92 160,165.35 Assets related
production line
Special fund for
484,047.64 51,904.80 432,142.84 Assets related
technical improvement
Subsidy for the
development on
production line
technical reform for 88,600.63 20,446.32 68,154.31 Assets related
green-friendly
high-quality metal
pipe
Subsidy for
characteristic
innovation and
entrepreneurship 2,000,000.00 2,000,000.00 Assets related
carrier project from
Hefei economic &
development zone
Total 177,377,450.12 3,446,100.00 13,470,627.83 167,352,922.29
36. Share capital
Change during the period (+、-)
Item Opening balance Shares Ending balance
New shares Bonus
transferred from Other Subtotal
issued share
capitalreserve
Total shares 1,044,597,881.00 1,044,597,881.00
37. Capital reserve
Increase this
Item Opening balance Decrease this period Ending balance
period
Share premium 2,635,663,966.42 3,735.20 2,635,660,231.22
Other capital
48,173,262.70 48,173,262.70
reserve
Total 2,683,837,229.12 3,735.20 2,683,833,493.92
Note: Changes in equity premium this year were due to: the handling fee for repurchasing B shares.
38. Treasury stock
Item Opening balance Increase this Decrease this Ending balance
period period
Repurchase of B shares 9,929,336.18 7,029,141.10 16,958,477.28
Total 9,929,336.18 7,029,141.10 16,958,477.28
192
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Note: The Company convened the 40th meeting of the ninth board of directors, the 21st meeting of the ninth board of
supervisors, and the 3rd extraordinary general meeting of shareholders in 2020 on July 27, 2020 and August 18, 2020,
which reviewed and approved the Proposal on the Repurchase of Certain Domestically Listed Foreign Shares (B Shares)
of the Company. As of June 30, 2021, a total of 9,377,869 shares were repurchased at a repurchase price of no more
than HK$2.21 per share (tax included), the total repurchase transaction price was HK$20,112,237.81, and the real-time
exchange rate was equivalent to 16,958,477.28 yuan.
39. Other comprehensive income
Current Period
Less: written
in other
comprehensi Less
ve income in
：
previous Belong to Belong to
Item Opening balance Account before period and Inco
parent minority Ending balance
income tax in me
carried company after shareholders
Current Period tax
forward to tax after tax
gains and expe
nses
losses in
current
period
Other comprehensive income re-divided into gains/losses
Including:
Other
comprehensive
income that can
-177,046.32 -177,046.32 -177,046.32
be converted to
profit or loss
under the
equity method
Conversion
difference
arising from
foreign -21,451,084.17 -1,080,704.27 13,612.76
-1,094,317.03 -22,545,401.20
currency
financial
statement
-1,257,750.5 -1,271,363.3
Total -21,451,084.1 -22,722,447.5
9 5 13,612.76
7 2
40. Surplus reserves
Increase this Decrease this
Item Opening balance Ending balance
period period
Statutory surplus reserve 300,757,088.27 300,757,088.27
Discretionary surplus
115,607,702.16 115,607,702.16
reserve
Total 416,364,790.43 416,364,790.43
41. Retained profit
193
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Year
Amount at the end of last year 740,754,202.23 884,127,743.42
Add: adjustment from undistributed profit at
period-begin
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policy
Correction of former material error
Change of combination scope under
common control
Amount at the beginning of this period 740,754,202.23 884,127,743.42
Add: net profit attributable to shareholders of parent
37,157,511.54 -85,565,716.91
company for this period
Less: withdraw of statutory surplus reserve
withdraw of discretionary surplus reserve 5,577,930.23
Withdraw of general risk provision
Dividend payable for ordinary shares 51,776,420.60 52,229,894.05
Dividend of ordinary shares transferred to share
capital
Ending balance 726,135,293.17 740,754,202.23
42. Operation income and operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main
9,076,019,575.56 7,709,772,571.05 6,268,491,126.30 5,248,478,697.42
business
Other
526,739,769.73 467,458,625.12 527,369,610.69 505,371,191.93
business
Total 9,602,759,345.29 8,177,231,196.17 6,795,860,736.99 5,753,849,889.35
(2) Main business classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
4,083,961,202.33 3,333,608,452.02 2,920,923,251.77 2,377,765,236.89
freezer
Air-conditioner 3,958,753,350.50 3,540,481,498.57 2,595,885,454.11 2,247,295,670.56
Washing
322,671,076.35 245,250,873.36 179,892,246.84 148,034,172.04
machine
Small
household
appliances and 571,948,185.39 474,186,822.18 512,769,500.40 426,489,024.05
kitchen and
bathroom
194
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Other 138,685,760.99 116,244,924.92 59,020,673.18 48,894,593.88
Total 9,076,019,575.56 7,709,772,571.05 6,268,491,126.30 5,248,478,697.42
(3) Main business classified according to sales region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 6,392,384,758.43 5,212,930,284.17 3,936,852,798.41 3,251,061,917.12
Overseas 2,683,634,817.13 2,496,842,286.88 2,331,638,327.89 1,997,416,780.30
Total 9,076,019,575.56 7,709,772,571.05 6,268,491,126.30 5,248,478,697.42
Top five clients have income in sales of 5,140,635,916.75 yuan in total, a 53.53% in total operation
income.
43. Business tax and extra charges
Item Current Period Last Period
Treatment fund for abandon electrics & electronics 24,442,938.00 23,183,817.00
Real estate tax 9,677,275.48 8,958,027.86
Stamp duty 7,917,813.37 5,581,068.92
City construction tax 6,500,216.07 5,891,358.89
Extra charge for education and local education surcharge 5,016,280.65 4,600,301.45
Land use tax 4,111,310.87 3,429,180.26
Water fund 3,408,779.05 3,328,943.43
Other 3,117.48 332,015.42
Total 61,077,730.97 55,304,713.23
44. Sales expense
Item Current Period Last Period
Salary and extra charges 265,425,977.62 255,283,621.81
Transport expenses 250,818,152.26 211,841,082.72
Market support expenses 146,558,469.94 135,417,268.91
Air conditioner installation expenses 132,710,203.95 114,700,395.35
National three guarantees expense 62,323,679.78 90,184,296.10
Storage lease expenses 58,782,655.17 47,400,139.04
Travelling expenses 16,450,518.67 12,373,271.22
Business activity expenses 8,575,130.77 2,617,936.49
Depreciation expenses 4,209,609.23 3,944,399.06
Vehicle consumption 3,175,822.45 2,050,607.05
195
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Advertising expenses 1,247,421.22 352,891.37
House-lease expenses 1,207,473.65 781,344.62
Other expenses 33,320,814.23 47,036,174.49
Total 984,805,928.94 923,983,428.23
45. Administration expense
Item Current Period Last Period
Salary and social insurance etc. 95,733,835.85 79,407,413.87
Depreciation 12,053,427.34 9,232,289.11
Amortized intangible assets 9,407,284.87 10,046,746.48
Water and electricity fee 3,137,429.43 1,773,141.17
Business activities fee 2,501,946.80 1,195,638.78
Property insurance fee 1,557,260.98 1,425,753.98
Domestic travelling fee 1,462,423.83 1,315,916.59
Office fee 1,063,725.75 803,009.47
Other expenses 26,040,092.13 30,269,783.47
Total 152,957,426.98 135,469,692.92
46. R&D expenses
Item Current Period Last Period
Salary and social insurance etc. 64,787,655.99 50,278,576.62
Amortized intangible assets 58,589,406.22 53,871,905.01
Trial fee of R&D 32,578,184.91 31,728,340.10
Depreciation 6,808,269.93 7,707,855.52
Inspection and authentication fee 6,718,245.74 4,446,068.74
Utility bill 4,976,797.24 5,126,916.81
Cost of mould 1,384,855.16 2,727,245.15
Software usage fee 1,291,273.00 2,690,872.94
Other expenses 8,978,566.02 9,311,368.00
Total 186,113,254.21 167,889,148.89
47. Financial expenses
Item Current Period Last Period
Interest expenditure 37,292,383.25 45,498,046.65
Less: Interest income 62,433,816.96 74,784,016.69
Add: exchange loss 19,162,463.83 9,367,991.95
Procedure charge expenditure 8,002,685.90 10,335,558.03
196
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Discount expenditure -7,719,706.12 -3,285,693.99
Total -5,695,990.10 -12,868,114.05
48. Other income
Item Current Period Last Period
Corporate policy funds 27,000,000.00 28,310,000.00
Demonstration factory construction for the intelligent
3,132,911.40
manufacturing of intelligent air-conditioner
3,000,000.00
Loan discount
Immediate refund of VAT for software products 2,548,001.17 2,071,200.78
Subsidy for characteristic innovation and entrepreneurship carrier
2,000,000.00
project from Hefei economic & development zone
2019 VAT refund 1,635,266.39
Adaptability improvement on new coolants production 1,182,490.86 1,182,490.86
Economic Development Zone Industrialization Policy Award and
1,140,400.00
Supplementary Funds in 2019
Demolition compensation of Changhong Meiling 1,069,128.53 1,234,182.17
Hefei 2020 Smart Home Appliances (Home Furnishing)
1,000,000.00
Technology Award Supplement
Demolition compensation of Jiangxi Meiling 889,944.30 889,944.30
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT 704,651.16 704,651.16
AIR-CONDITIONER)
Hefei Industrial development policy subsidy for first half of 2018 625,000.00 625,000.00
The second batch of awards for supporting China Sound Valley
544,200.00
construction projects in 2020
Faster revenue growth corporate incentives 500,000.00
Technical transformation of the Athena project 474,375.00 2,143,125.00
Hefei Industrial development policy subsidy for second half of
447,137.50 1,341,412.50
2019
Industrialization of intelligent white household appliances software
363,636.36 363,636.36
platform and typical application research and development
Policy funds for manufacturing a strong province, subsidy for
equipment for the technological transformation of industrial strong 312,500.00 312,500.00
base
Subsidies for intelligent transformation & upgrading of enterprises
from the new industrialization policy in economic development 302,837.50 302,837.50
zone
Centre for external cooperation of the environmental protection 257,877.27
197
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Government subsidy for new plant construction - industrialization
250,000.00 250,000.00
of cryogenic refrigeration equipment
Subsidy for industrial development policy from Hefei for first half
217,300.00
of 2020
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial
152,823.24 152,823.24
special project 2019)
Promoting the new industry (annual output of 0.6 million
medium& large volume environmental protection and energy 152,206.26 152,206.26
saving freezer)
2018 Zhongshan Special fund for industrial development - Special
132,861.90 132,861.90
topic of technical transformation
Equipment subsidy for the industrial base technical renovation 117,500.00 117,500.00
from Economic and Information Commission
Subsidy for employment stable 111,761.05 4,457,036.59
Promotion of the energy-saving room air conditioner 105,154.62 105,154.62
Upgrade project for the production line of Mianyang Meiling 98,749.98 98,749.98
Intelligent Refrigerator
Subsidy for purchase of R & D instruments and equipment 91,056.26 73,500.00
Subsidy for equipment purchasing for Hefei Tech. Improvement
89,580.00 89,580.00
project in 2017
2020 Triple One Innovation Project in Anhui Province 54,166.67
Special fund for technical improvement 51,904.80 21,442.62
Special fund for technical improvement 48,004.50 47,825.00
Technical transformation of refrigerator evaporator workshop 44,829.00 44,829.00
Robot policy-rewards for purchasing robots 35,062.50
Technical renovation of air conditioner production line 30,601.92 30,601.92
Subsidy for the development on production line technical reform
20,446.32 20,446.32
for green-friendly high-quality metal pipe
Technical transformation subsidy 15,889.98
R290 air-conditioning production IOC subsidy 2,403,000.00
Special funds for export credit insurance 1,475,997.00
Technology Innovation and Enterprise Development Fund 640,240.37
2025 Industrial Development Fund 630,000.00
Feidong County's policy awards for promoting high-quality
500,000.00
economic development
Special subsidy funds for epidemic prevention and control 500,000.00
Freezer project of Changhong Meiling 367,031.26
Other units 6,299,844.49 3,060,318.49
Total 57,250,100.93 54,852,125.20
198
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
49. Investment income
Item Current Period Last Period
Long-term equity investment income by equity method -16,047,810.77 209,880.54
Investment income obtained from disposal of Trading financial
65,827,326.06 5,402,087.72
assets
Income from financial products 2,754,190.61 1,539,918.00
Total 52,533,705.90 7,151,886.26
50. Changes in fair value gains
Item Current Period Last Period
Trading financial assets -11,569,560.58 -4,785,270.15
Including :Income of fair value changes from derivative financial
-18,496,182.50 -4,785,270.15
instruments
Wealth management product interest accrual 6,926,621.92
Trading financial liability 1,837,906.29 -4,939,481.97
Including :Income of fair value changes from derivative financial
1,837,906.29 -4,939,481.97
instruments
Total -9,731,654.29 -9,724,752.12
51. Credit impairment loss
Item Current Period Last Period
Note receivable bad debt loss -451,763.04
546,876.51
Account receivable bad debt loss -22,539,727.97
-15,669,395.22
Other account receivable bad debt loss 721,269.82
1,514.82
Total -15,121,003.89 -22,270,221.19
52. Assets impairment loss
Item Current Period Last Period
Loss of inventory depreciation and loss of contract performance
-43,310,366.42 -26,583,248.58
cost impairment
Total -43,310,366.42 -26,583,248.58
53. Income from assets disposal
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income from non-current assets disposal -208,978.90 -178,704.98 -208,978.90
199
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Including: income classify to assets ready for
sale
income not classify as to assets ready
-208,978.90 -178,704.98 -208,978.90
for sale
Including: Income from fixed assets
-208,978.90 -178,704.98 -208,978.90
disposal
Income from intangible assets
disposal
Total -208,978.90 -178,704.98 -208,978.90
54. Non-operation revenue
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income of penalty 854,054.88 366,979.53 854,054.88
Profit from disposal of non-current assets 117,430.00 117,430.00
Other 4,890,835.83 3,078,629.68 4,890,835.83
Total 5,862,320.71 3,445,609.21 5,862,320.71
55. Non-operating expenditure
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Non-current asset retirement losses 645,034.44 645,034.44
Penalty and late fee 34,829.07 77.03 34,829.07
Other 80,729.11 959,477.10 80,729.11
Total 760,592.62 959,554.13 760,592.62
56. Income tax expenses
Item Current Period Last Period
Current income tax 21,302,275.31 8,498,558.12
Deferred Income Tax 15,784,696.07 -11,361,569.54
Total 37,086,971.38 -2,863,011.42
57. Other comprehensive income
Found more in 39. Other comprehensive income in VI
200
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
58. Items of cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
Item Current Period Last Period
Government subsidy and rewards 40,956,209.27 49,374,979.95
Collection of restriction fund 22,688,330.93 4,801,740.89
Cash deposit, deposit 9,420,313.94 11,794,014.82
Compensations 2,605,385.53 1,589,695.33
Rental income 2,178,291.38 2,537,602.16
Other 1,793,896.56 4,104,674.84
Total 79,642,427.61 74,202,707.99
2) Cash paid for other activities relating to operation
Item Current Period Last Period
Transfer to restriction fund 397,877,095.29 23,523,106.48
Market expenses 103,773,740.45 103,452,106.47
Rental fee 57,814,676.41 56,501,840.38
Service supporting fee 31,063,421.76 27,112,533.75
Petty cash, deposit, Cash deposit 27,666,562.51 33,991,028.48
Travel expenses, meeting fees and exhibition
23,609,336.42 15,954,778.39
fees
Business activities fee 11,888,247.82 7,486,994.76
Inspection and certification fee, certification
11,298,717.35 8,194,323.28
charge and reviewing fee
Transportation and vehicle expenses 8,370,198.29 6,928,444.73
Handling fee 8,259,452.97 9,596,183.72
Repair charge 8,129,554.19 5,969,217.79
Technological cooperation costs and consulting
6,098,074.18 4,050,588.10
charge
Office expenses 3,172,145.59 3,977,096.29
Advertising fee 2,917,266.75 4,535,316.89
Labor service fee 2,003,400.19 2,806,291.21
Communication fee 1,073,434.97 281,653.09
Other expense 57,481,090.49 91,404,105.71
Total 762,496,415.63 405,765,609.52
3) Cash received from other activities relating to investment
Item Current Period Last Period
201
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Interest income arising from bank savings 69,755,550.75 62,758,263.18
Income of forward exchange settlement 67,706,807.74 5,402,087.72
Cash deposit 925,112.51 230,611.63
Total 138,387,471.00 68,390,962.53
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Loses of forward exchange settlement 47,506.93
Total 47,506.93
5) Cash received from other activities relating to financing
Item Current Period Last Period
Bill discounting fundraising 4,675,857.30
Total 4,675,857.30
6) Cash paid for other activities relating to financing
Item Current Period Last Period
Payment for B share repurchase 7,032,876.30
Lease liability principal and interest 4,097,081.48
Financing lease 175,323.88 893,318.70
Handling charge of dividend 36,415.52 36,893.14
Total 11,341,697.18 930,211.84
(2) Supplementary of the consolidated cash flow statement
Item Current Period Last Period
1. Net profit is adjusted to cash flow of operation
activities:
Net profit 55,696,358.16 -219,171,870.49
Add: provision for depreciation of assets 32,172,406.39 48,853,469.77
Depreciation of fixed assets, consumption of oil gas assets
108,832,291.21 104,594,561.21
and depreciation of productive biological assets
Depreciation of right-of-use assets 3,296,977.97
Amortization of intangible assets 70,475,493.03 66,064,785.04
Amortization of long-term retained expense 208,978.90 178,704.98
Loss from disposal of fixed assets, intangible assets and
527,604.44
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed
9,731,654.29 9,724,752.12
with “-”)
Loss from change of fair value (gain is listed with “-”) -5,978,969.88 -19,917,978.09
202
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Financial expense (gain is listed with “-”) -52,533,705.90 -7,151,886.26
Investment loss (gain is listed with “-”) 19,447,731.84 -9,942,973.01
Decrease of deferred income tax assets (increase is listed
-3,655,216.54 -1,418,596.53
with “-”)
Increase of deferred income tax liabilities (decrease is
-587,211,166.68 -424,221,441.03
listed with “-”)
Decrease of inventories (increase is listed with “-”) -988,302,199.73 -478,954,328.10
Decrease of operational accounts receivable (increase is
748,795,645.68 543,257,841.98
listed with “-”)
Other
Net cash flow arising from operation activities -588,496,116.82 -388,104,958.41
2. Major investment and financing activities that do not
involve cash receipts:
Conversion of debt into capital
Switching Company bonds due within one year
financing lease of fixed assets
3. Net change in cash and cash equivalents:
Balance at period-end of cash 4,767,551,500.75 4,792,468,168.07
Less: Opening balance of cash 6,425,529,815.10 5,385,807,475.51
Add: Balance at period-end of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1,657,978,314.35 -593,339,307.44
(3) No net cash paid for subsidiary obtained in Current Period
(4) No net cash received from subsidiary disposal in Current Period
(5) Cash and cash equivalent
Item Current Period Last Period
Cash 4,767,551,500.75 4,792,468,168.07
Including: cash in stock 89,912.16 128,714.24
Bank deposits available for payment at any time. 4,083,081,613.97 4,552,864,202.70
Other monetary fund available for payment at any time 684,379,974.62 239,475,251.13
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at period-end 4,767,551,500.75 4,792,468,168.07
Including: using the restricted cash and cash equivalents of
the parent company or subsidiary of the group
59. Assets with ownership or the right to use restricted
203
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Book value at period-end Reasons
Monetary fund 534,571,433.50 Cash deposit, frozen funds
note 1
Receivables financing 440,912,836.95 Pledged
Investment real estate note 2 3,549,391.07 Mortgage
note 2
Fixed assets 357,384,947.94 Mortgage
note 2
Intangible assets 285,348,212.33 Mortgage
Total 1,621,766,821.79
Note 1: The note receivable listed in receivables financing was pledged for: short-term financing from the bank; with
purpose of improving the note utilization, the Company draw up bank acceptance by pledge parts of the outstanding
notes receivable to the bank
Note 2: The mortgage of investment real estate, fixed assets, and intangible assets is the mortgage of houses and
buildings and land use rights. For details, please refer to Note VI. 30. Long-term loans.
60. Foreign currency
(1) Foreign currency
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
Monetary fund 205,655,918.43
Including: USD 27,201,221.23 6.4601 175,722,609.27
Euro 1,880,390.26 7.6862 14,453,055.62
AUD 1,420,183.66 4.8528 6,891,867.27
GBP 117,444.91 8.9410 1,050,074.94
Pakistan Rupi 58,078,577.55 0.0408 2,369,605.96
IDR 6,672,183,097.00 0.000446 2,975,793.66
HKD 3,297.42 0.8321 2,743.78
PHP 16,492,228.42 0.1328 2,190,167.93
Account receivable 921,010,335.70
Including: USD 107,742,004.39 6.4601 696,024,122.56
Euro 15,528,162.84 7.6862 119,352,565.22
AUD 8,502,022.00 4.8528 41,258,612.36
GBP 338,211.00 8.9410 3,023,944.55
Pakistan Rupi 1,101,410,856.42 0.0408 44,937,562.94
IDR 35,298,970,481.31 0.000446 15,743,340.83
PHP 0.1328
5,046,590.70 670,187.24
204
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Ending foreign currency Exchange rate Ending RMB converted
balance balance
Other account receivable 9,209,447.07
Including: USD 1,265,765.52 6.4601 8,176,971.84
Pakistan Rupi 13,544,917.00 0.0408 552,632.61
PHP 225,500.00 0.1328 29,946.40
HKD 540,675.66 0.8321 449,896.22
Account payable 26,970,597.19
Including: USD 1,316,275.31 6.4601 8,503,270.13
Euro 13,419.32 7.6862 103,143.58
Pakistan Rupi 255,521,203.84 0.0408 10,425,265.12
PHP 59,781,011.75 0.1328 7,938,918.36
Other account payable 14,417,720.72
Including: USD 9,166.51 6.4601 59,216.57
HKD 17,362.53 0.8321 14,447.36
Pakistan Rupi 348,440,514.34 0.0408 14,216,372.99
PHP 961,474.36 0.1328 127,683.80
Short-term loans 105,061,500.00
Including: USD 15,000,000.00 6.4601 96,901,500.00
Pakistan Rupi 200,000,000.00 0.0408 8,160,000.00
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited, mainly
operates in Lahore, Pakistan; Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRIC
INDONESIA, PT, mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc,
mainly operates in Philippines; Recording currency is PHP.
61. Government subsidy
Amount reckoned
Item Amount Item into current
gain/loss
Enterprise policy funds 27,000,000.00 Other 27,000,000.00
income
Other
Loan discount 3,000,000.00 3,000,000.00
income
Deferred
2020 Triple One Innovation Project in Anhui Province 2,600,000.00 54,166.67
income
205
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
Item Amount Item into current
gain/loss
Immediate refund of VAT for software products 2,548,001.17 Other 2,548,001.17
income
2019 VAT refund 1,635,266.39 Other 1,635,266.39
income
Economic Development Zone Industrialization Policy Other
1,140,400.00 1,140,400.00
Award and Supplementary Funds in 2019 income
Hefei 2020 Smart Home Appliances (Home Furnishing) Other
1,000,000.00 1,000,000.00
Technology Award Supplement income
Centre for external cooperation of the environmental Deferred
846,100.00
protection income
The second batch of awards for supporting China Sound Other
544,200.00 544,200.00
Valley construction projects in 2020 income
Other
Faster revenue growth corporate incentives 500,000.00 500,000.00
income
Other units 6,315,427.16 Other 6,315,427.16
income
Total 47,129,394.72 43,737,461.39
VII. Changes of consolidation rage
1. Enterprise combined under the different control: nil
2. Enterprise combined under the same control: nil
3. Reversed takeover: nil
4. Disposal of subsidiary: nil
5. Subsidiary liquidated
6. Subsidiary newly established:
Shareholding
New merger Net asset at Net profit in
Name of company
reasons ratio period-end Current Period
Anhui Lingan Medical Equipment Co., Investment
63.2683% 9,997,480.00 -2,520.00
Ltd establishment
7. Subsidiary merger by absorption: Nil
VIII. Equity in other entity
1. Equity in subsidiary
206
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(1) Composition of the enterprise group
Main office Registration Shareholding ratio（%)
Subsidiary Business nature Acquire by
place place Directly Indirectly
Manufacturing and
Zhongke Meiling Cryogenic Technology Investment
Hefei Hefei 63.2683
Co., Ltd.1) sales establishment
Software
Sichuan Hongmei Intelligent Technology Mianyang Mianyang Investment
100
Co., Ltd.2) development establishment
Manufacturing and
Mianyang Meiling Refrigeration Co., Ltd. Mianyang Mianyang Investment
95 5
3) sales establishment
Manufacturing and
Jiangxi Meiling Electric Appliance Co., Jingdezhen Jingdezhen Investment
98.75 1.25
Ltd. 4) sales establishment
Hefei Meiling Wulian Technology Co., Software
Investment
Hefei Hefei 100
Ltd5） development establishment
Hefei Meiling Electric Appliances Investment
Hefei Hefei Sales 99.82 0.18
Marketing Co., Ltd6) establishment
Jinan Xiangyou Electric Appliances Investment
Jinan Jinan Sales 93.4
Marketing Co., Ltd7) establishment
Wuhan Meizirong Electrical Marketing Co., Investment
Wuhan Wuhan Sales 92
Ltd8) establishment
Zhengzhou Meiling Electric Appliances Zhengzho Investment
Zhengzhou Sales 100
Marketing Co., Ltd9) u establishment
Taiyuan Meiling Electric Appliances Investment
Taiyuan Taiyuan Sales 100
Marketing Co., Ltd.10) establishment
Guangzhou Meiling Electric Appliances Guangzho Guangzho Investment
Sales 98
Marketing Co., Ltd11) u u establishment
Tianjin Meiling Electric Appliances Investment
Tianjin Tianjin Sales 100
Marketing Co., Ltd.12) establishment
Enterprise
Manufacturing and
Hefei Meiling Nonferrous Metal Products combined not
Hefei Hefei 100
Co., Ltd.13) sales under the same
control
Enterprise
Changhong Meiling Ridian Technology Manufacturing and
combined
Zhongshan Zhongshan 99.0361
Co., Ltd.14） sales under the same
control
CHANGHONGMEILINGELECTRICIND Jakapta Jakapta Investment
Sales 100
ONESIA,PT 15） establishment
ChanghongRubaTradingCompa（Private） Pakistan Pakistan Investment
Sales 60
Limited 16) establishment
Enterprise
Manufacturing and
Sichuan Changhong Air-conditioner Co., Mianyang Mianyang combined
100
Ltd. 17) sales under the same
control
Enterprise
Manufacturing and
Zhongshan Changhong Electric Co., combined
Zhongshan Zhongshan 90 10
Ltd.18) sales under the same
control
Hefei Meiling Group Holdings Limited19) Hefei Hefei Manufacturing and 100 Enterprise
combined not
207
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Main office Registration Shareholding ratio（%)
Subsidiary Business nature Acquire by
place place Directly Indirectly
sales under the same
control
Enterprise
Manufacturing and
Meiling Equator Household Appliance combined not
Hefei Hefei 100
(Hefei) Co., Ltd.20) sales under the same
control
Enterprise
Manufacturing and
combined not
Hefei Equator Appliance Co., Ltd.21) Hefei Hefei 100
sales under the same
control
Manufacturing and
Hongyuan Ground Energy Heat Pump Tech. Mianyang Mianyang Investment
51
Co., Ltd22) sales establishment
Manufacturing and
Ground Energy Heat Pump Tech. Investment
Zhongshan Zhongshan 51
(Zhongshan) Co., Ltd. 23) sales establishment
Meiling CANDY Washing Machine Co., Manufacturing and
Investment
Hefei Hefei 60
Ltd.24） sales establishment
Guangzhou Changhong Trading Co., Guangzhou Guangzhou Investment
Sales 100
Ltd25） establishment
Hebei Hongmao Household Appliance Manufacturing and
Handan Handan Investment
99.0361
Technology Co., Ltd26） sales establishment
Manufacturing and
Investment
Anhui Tuoxing Technology Co., Ltd.27） Hefei Hefei 63.2683
sales establishment
CH-Meiling.International (Philippines) Investment
Philippines Philippines Sales 100
Inc.28） establishment
Hefei Changhong Meiling Life Appliances Investment
Hefei Hefei Sales 70
Co., Ltd. 29） establishment
Anhui Ling’an Medical Equipment Co., Ltd Manufacturing and
Investment
Lu'an Lu'an 63.2683
30） sales establishment
Note:
1) Zhongke Meiling Cryogenic Technology Co., Ltd.(hereinafter referred to as Zhongke Meiling), the predecessor of
which was Zhongke Meiling Cryogenic Technology Limited Liability Company, was established on 29 October 2002
by joint contribution from the Company and Technical Institute of Physics and Chemistry, CAS (“TIPC”), with
registered capital of RMB60 million upon the establishment, among which, the Company made capital contribution of
RMB42 million (including the assets in specie at the consideration of RMB35,573,719.70 as evaluated by Beijing
Zhongzheng Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of
RMB6,426,280.30) accounting for 70% of the aforesaid registered capital, and TIPC made capital contribution of
RMB18 million with intangible assets of such value (namely the single compressor mixture industrial low temperature
refrigeration technology) as evaluated by Jingzhongzi Assets Appraisal Co., Ltd. with issuance of the Appraisal Report
(ZZPBZ(2002)No.225) accounting for 30% of the aforesaid registered capital. The paid-in of the above registered
capital has been verified by Huazheng Accounting Firm by issuance of the Assets Verification Report (HZYZ (2002)
No. B157) dated 16 October 2002.
208
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
In October 2014, according to the relevant provision under the Management Rules on Application of State Owned
Assets by Central Business Organs, TIPC transferred the 30% equity interests held by it in Zhongke Meiling Cryogenic
Technology Company Limited to its wholly-owned subsidiary Zhongke Xianxing (Beijing) Assets Management Co.,
Ltd (hereinafter referred to as Zhongke Xianxing) which would perform management over the operating assets of TIPC.
Upon consideration and approval at the 37th session of the 7th Board of Directors of Hefei Meiling Co., Ltd, it is agreed
to waive the pre-emptive right.
On 10 August 2015, all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic Technology
Company Limited, pursuant to which, they decided to change the firm type of Zhongke Meiling Cryogenic Technology
Company Limited to a joint stock company. Based on the net assets of RMB96, 431,978.25 as audited by Xinyong
Zhonghe CPA as of 30 June 2015, an aggregate of 65,000,000 shares have been converted at the proportion of 1:0.67,
which are to be held by the original shareholders according to their respective entitlement. In case that the net assets
exceed registered capital, the balance shall be recorded in capital reserve. On 28 August 2015, Xinyong Zhonghe CPA
reviewed the registered capital and paid-in thereof in respect of the stock reform, and issued Assets Verification Report
(XYZH/2015CDA40161). The Company registered industrial and commercial information on 11 September 2015.
On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke Meiling Cryogenic
Technology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the Company; Zhongke
Meiling Company issued 3,150,000 shares to specific investors by the non-public offering of shares at 1.63 Yuan per
share. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital verification report issued
by ShineWing CPA (special general partnership). After the completion of the issuance, the share capital of Zhongke
Meiling Company increased to 68,150,000 shares and the Company's shareholding ratio was 66.76%.
On 15 September 2017, the Proposal of the First Stock Placement of Zhongke Meiling Cryogenic Technology Co., Ltd
for year of 2017 was deliberated and approved by 4th session extraordinary of shareholders general meeting of 2017.
Zhongke Meiling offering 490,300 shares to specific investors by way of privately placement, which has 1.72 Yuan per
share in amount. The capital increasement has been verified by the No. ［XYZH/2017CDA40324］capital verification
report issued by ShineWing CPA (special general partnership). After the completion of shares placement, stock of the
Company increased to 68,640,300 shares and 66.87% held by the Company.
On September 9, 2019, the 10th Meeting of the Second Board of Directors and the Fourth Extraordinary Shareholders’
Meeting reviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke Meiling Cryogenic
Technology Co., Ltd. in 2019 (Revised Version), the number of shares to be issued this time does not exceed 3,907,900
shares (including 3,907,900 shares), the issue price is not less than 2.16 yuan per share, and the raised funds are
expected to not exceed 8,441,064.00 yuan (including 8,441,064.00 yuan). After the completion of the additional issue,
the company’s share capital increased to 72,548,200 shares, which was verified by [No. XYZH/2020CDA30002]
“Capital Verification Report” issued by Shine Wing Certified Public Accountants (LLP), and the Company’s
shareholding ratio was 63.2683%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) was established
on Jan. 24, 2014. It is a limited company jointly invested by the Company and Mianyang Meiling Refrigeration Co.,
Ltd., being approved by the Industrial and Commerce Bureau of Peicheng District, Mianyang City. The company owes
registered capital of RMB 5 million, including RMB 4.95 million contributed by Changhong Meiling Company in cash,
accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed RMB 50000 in cash
with 1% of the register capital occupied. The above mentioned register capital have been verified by verification report
209
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
of Chuanjinlai Yanzi No. [2014] B039 issued by Sichuan Jinlai Accounting Firm Co., Ltd. In July 2016, the shares of
Hongmei Intelligent, held by the Company has transferred to Sichuan Changhong AC Co., Ltd., after transferred,
Changhong AC has 99% equity of Hongmei Intelligent, the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limited liability company
jointly set up by the Company and China-tech Meiling Company, was founded on Mar. 6, 2009. Its registered capital
and paid-in capital were RMB 50 million upon establishment, of which, the Company invested RMB 45 million,
accounting for 90% of the registered capital; Zhongke Meiling Company invested RMB 5 million, accounting for 10%
of the registered capital. The capital receipt was verified by the verification report [CXKY (2009) No. 008] of Sichuan
Xingrui Certified Public Accountants. On 19 January 2011, the Company increase RMB 50 million in capital of
Mianyang Meiling, of which RMB 95 million invested by the Company, a 95% of total register capital while RMB 5
million invested by Zhongke Meiling, a 5% of total capital occupied. The paid-in capital has been verified by Capital
Verification Report［XYZH/2010CDA6040］from Chengdu Branch of Shinewing CPA CO., Ltd. In 2011, Zhongke
Meiling entered into “Equity Transfer Agreement” with Jiangxi Meiling Refrigeration Co., Ltd. 5 percent equity of
Mianyang Meiling held by Zhongke Meiling was transferred to Jiangxi Meiling Refrigerator. In September 2013,
Jiangxi Meiling Refrigeration was combined by Jiangxi Meiling Electric Appliance Co., Ld, than 5 percent equity was
transfer to Jiangxi Meiling Electric Appliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling Electric Appliance) was a
limited liability company jointly established by the Company and Mianyang Meiling on 23 May 2011. Register capital
of the company totally as RMB 50 million, RMB 49.375 million invested by the Company, 98.75% in total register
capital while RMB 0.625 million invested by Mianyang Meiling , a 1.25% in total register capital occupied. The initial
investment RMB 10.50 million was received dated 13 May 2011 with RMB 10 million from the Company and RMB
0.5 million from Mianyang Meiling. Rest of the capital shall be invested fully within 2 years after the joint ventures
established according to capital requirement. The initial investment capital were verified by the Capital Verification
Report [JXKYZi (2011) No. 090] issued from Jingdezhen Xingci CPA Co., Ltd. Second capital RMB 39.5 million was
fully funded on 28 July 2011, the Company contributed RMB 39.375 million while Mianyang Meiling Company
invested RMB 125,000, the contributions have been verified by the capital verification report [Jing Xing Kuai Yan Zi
(2011) No.: 134] issued from JDZ Xingci CPA Co., Ltd.
5) Hefei Meiling Wulian Technology Co., Ltd. (hereinafter referred to as Wulian Technology) was established dated 21
January 2019 with registered capital of RMB 10 million, and it is the subsidiary of the Company with fully-owned
establishment.As of December 31, 2020, paid in capital is 6 million yuan
6) Hefei Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Meiling Marketing) is the limited
company jointly invested by the Company and Mianyang Meiling Company on 21 Oct. 2009. Registered capital and
paid-up capital were RMB 10 million, including RMB 9.9 million invested by the Company, a 99% of the registered
capital; Mianyang Meiling Company contributed RMB 0.1 million, a 1% of the registered capital. The above
mentioned paid-up register capital have been verified by verification report of [Wan An Lian Xin Da Yan Zi (2009) No.
074] issued by Anhui An Lian Xin Da Accounting Firm Co., Ltd. On 25 Nov. 2010, the Company increased capital
RMB 45 million, registered capital amounting to RMB 55 million, including RMB 54.9 million contributed by the
Company, a 99.82% of the registered capital, while Mianyang Meiling invested RMB 0.1 million, a 0.18% of the
registered capital. The increased capital has been verified by verification report of [Wan Hua Shen Zheng Da Kuai Yan
Zi (2010) No. 1514] issued by Anhui Hua Shen Zhengda CPA Co., Ltd.
210
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
7) Jinan Xiangyou Electric Appliances Marketing Co., Ltd (hereinafter referred to as Jinan Xiangyou) was established
dated 3 June 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million, accounted
for 36% of the registered capital; after Meiling Marketing acquired 55.4% equity interests from the minority
shareholders in 2015, Meiling Marketing totally holds 91.4% equity of the Jinan Xiangyou, In 2019, minority
shareholders step out, shares of Jinan Meiling hold by Meiling Marketing changed to 93.4%.
8) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) was established dated
10 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB 4.60 million, accounted for
92% of the registered capital.
9) Zhengzhou Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Zhengzhou Meiling) was
established dated 17 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08
million, accounted for 36% of the registered capital. In 2013, Meiling Marketing purchased 10% equity from minority;
Meiling Marketing signed equity transfer agreement with the minority shareholders in April 2015, to acquire as the
transferee the 39% equity interests of Zhengzhou Meiling held by minority shareholders, Meiling Marketing acquired
10% equity interests from the minority shareholders in February 2016; and after acquiring 5% equity from minority in
2017, Meiling Marketing totally holds 100% equity of Zhengzhou Meiling.
10) Taiyuan Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Taiyuan Meiling) was
established dated 18 January 2011 with registered capital of RMB 4 million; Meiling Marketing invested RMB 1.59
million, accounted for 39.75% of the registered capital; after Meiling Marketing purchased 45.5% equity from minority
in 2013, after purchased 14.75% equity from minority in 2016, Meiling Marketing totally holds 100% equity of the
Taiyuan Meiling.
11) Guangzhou Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Guangzhou Meiling) was
established dated 13 May 2011 with registered capital of 5 million Yuan; Meiling Marketing invested 4.3 million Yuan,
accounted for 86% of the registered capital; after Meiling Marketing acquired 12% equity interests from the minority
shareholders in 2014, Meiling Marketing totally held the 98% equity interests of Guangzhou Meiling.
12) Tianjin Meiling Electric Appliances Marketing Co., Ltd. (hereinafter referred to as Tianjin Meiling) was established
dated 2 March 2011 with registered capital of 3 million Yuan; Meiling Marketing invested 2.565 million Yuan, accounted
for 85.5% of the registered capital; In 2015, Meiling Marketing and Jiangxi Meiling Appliances entered into equity
transfer agreements with minority shareholders respectively, to acquire as the transfers the 14.1% and 0.4% equity
interests of Tianjin Meiling held by minority shareholders. Upon completion of equity transfer in December 2015,
Meiling Marketing totally held the entire equity interests of Tianjin Meiling.
13) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal) was the Sino-foreign
joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And Singapore Kim Shin Development Co.,
Ltd., which have been originally approved by the [WJMWFZZ (1996) No.349] of Foreign Trade and Economic
Committee of Anhui Province. Its registered capital was US$ 2.92 million upon establishment, of which, original
Meiling Group invested US$ 1.46 million (monetary capital), accounting 50% of the registered capital, Hefei Meiling
Copper Co., Ltd invested US$ 0.584 million (monetary capital of RMB 0.18 million and real assets of US$ 0.404 million), accounting
20% of registered capital while Singapore Kim Shin Development Co., Ltd invested US$ 0.876 million (monetary capital),
accounting 30% of the registered capital. The above mentioned investment verified by the verification report of [HSWZ
(1995) No. 0737], [HSWZ (1996) No. 328] and [HSWZ (1998) No. 088] from Anhui CPAs Co., Ltd. In July 2008,
211
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
approved by [HWS (2008) No.53] from Foreign Trade Economic Cooperation Bureau of Hefei City, 30% equity and
20% equity held by Singapore Kim Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to
original Meiling Group Totally. The Company’s register capital came into RMB 24,286,808.00 after transference, and
was not the joint-venture any more.
14) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is a limited liability
company invested and established by Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as Sichuan
Changhong) and Sichuan Changhong Motor Transport Co., Ltd. (hereinafter referred to as Changhong Motor Transport
Company) on May 25, 2016. The registered capital and paid-in capital are RMB 40 million Yuan, of which Sichuan
Changhong has invested 32 million Yuan by monetary capital, accounting for 80% of the registered capital; Changhong
Motor Transport Company has invested 8 million Yuan, accounting for 20% of the registered capital. The official
receipts of registered capital have been verified by original Sichuan Junhe Accounting Firm [No. JHYZ (2006)
3027].Ridian Technology increased registered capital of 43 million Yuan on January 4, 2007, changing from 40 million
Yuan to 83 million Yuan , for the newly increased 43 million Yuan , Sichuan Changhong invested 1.8 million Yuan ,
Guangdong Xiongfeng Electric Co., Ltd. invested 40 million Yuan , and Kou Huameng and other 9 natural person
shareholders invested 1.2 million Yuan , at the same time, the shareholders' meeting considered and agreed to transfer
the investment of 8 million Yuan of Changhong Motor Transport Company to Sichuan Changhong Venture
Investment Co., Ltd, the structure of the registered capital after changes was that Sichuan Changhong invested 33.8
million Yuan , accounting for 40.72%；Guangdong Xiongfeng Electric Co., Ltd. invested 40 million Yuan , accounting
for 48.19%; Sichuan Changhong Venture Investment Co., Ltd Invested 8 million Yuan , accounting for 9.64%; Kou
Huameng and other 9 natural person shareholders invested 1.2 million Yuan , accounting for 1.45%. The change of
registered capital was verified by Zhongshan Promise Accounting Firm [No. ZCHZ (2007)501010].
On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to Hu Zhiheng, after the
transfer, the registered capital of Changhong Ridian was still 83 million Yuan , the structure of registered capital after
changes was that Sichuan Changhong invested 33.8 million Yuan , accounting for 40.72%; Guangdong Xiongfeng
Electric Co., Ltd. invested 40 million Yuan , accounting for 48.19%; Sichuan Changhong Venture Investment Co., Ltd
invested 8 million Yuan , accounting for 9.64%; Hu Zhiheng and other two natural person shareholders invested 1.2
million Yuan , accounting for 1.45%.
On October 9, 2014, Changhong Ridian held the shareholders meeting which considered and agreed Kou Huameng to
transfer its stock rights of total 250,000 Yuan which accounts for 0.301% of the Ridian Technology’s registered capital
to Sichuan Changhong Venture Investment Co., Ltd at the cost of 317,802 Yuan. The other shareholders of the Ridian
Technology waived the right of pre-emption. On December 11, 2014, Ridian Technology held the shareholders meeting
which considered and agreed Guangdong Xiongfeng Electric Co., Ltd. to transfer its stock rights of total 40 million
Yuan which accounts for 48.19 % of the company's registered capital to Sichuan Changhong Electric Co., Ltd. at the
cost of 43,977,300 Yuan. The other shareholders of the Ridian Technology waived the right of pre-emption. The
structure of registered capital after changes was that Sichuan Changhong invested 73.8 million Yuan, accounting for
88.92%; Sichuan Changhong Venture Investment Co., Ltd Invested 8.25 million Yuan, accounting for 9.94%; Hu
Zhiheng and another natural person shareholder invested 950,000 Yuan , accounting for 1.14%.
On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd. transferred total
98.855% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds 98.855%
stock rights of Ridian Technology.
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Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Changyuan to transferred
total 0.18% equity of the Ridian Technology to the Company. After the transfer, the Company directly holds 99.0361%
stock rights of Ridian Technology.
15) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Changhong) is a
subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and Sichuan Changhong in 2016, the
company’s registered capital is 6 million US dollars, of which Zhongshan Changhong subscribed and paid 5.88 million
US dollars in cash, accounting for 98% of the registered capital, Changhong Air Conditioning subscribed and paid
120,000 US dollars in cash, accounting for 2% of the registered capital. On 4 July 2017, rests of the 2.94 million US
dollars are subscribed by Zhongshan Changhong in line with the agreement.
16) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba) was a joint
venture established by Zhongshan Changhong Appliances Company Limited and RUBA GENERAL TRADING FZE
Company (“RUBA”) on 5 August 2011 with the approval from Guangdong Development and Reform Commission by
issuance of the Approval Relating to Joint Construction of a Manufacturing and Selling Platform Project in Pakistan by
Zhongshan Changhong Appliances Company Limited (YFGWZ(2011)958). The resolution of the second extraordinary
shareholders' meeting of Zhongshan Changhong in 2016 passed the "Proposal on the Company's Capital Increase to
Changhong Ruba Trading Company (Private) Limited", and agreed that the company and UAE RUBA Company jointly
increase capital to Changhong Ruba Trading Company(Private) Limited which was invested by both sides in Pakistan
at an earlier stage, Zhongshan Changhong invested 3.84 million US dollars in this capital increase, and UAE RUBA
Company invested 2.56 million US dollars, the shares held by both sides remained unchanged. After the capital
increase, the company’s registered capital became 12.4 million US dollars, of which Zhongshan Changhong Home
Appliances Company Limited invested 7.44 million US dollars in cash, shareholding ratio was 60%, UAE RUBA
Company invested 4.96 million US dollars in cash, and shareholding ratio was 40%.
17) Sichuan Changhong Air Conditioning Co., Ltd. (hereinafter referred to as Changhong Air Conditioner), a limited
liability company jointly set up by Sichuan Changhong and Changhong Chuangtou, was founded on November 28,
2008. Its registered capital was RMB 200 million upon establishment, of which, Sichuan Changhong invested RMB
298 million (RMB 210,088,900 invested by monetary capital while RMB 87,911,100 invested by real material),
equivalent to RMB 198 million shares, accounting for 99% of the registered capital; and Changhong Chuangtou
invested RMB 3 million, accounting for 1% of the registered capital with equivalent of RMB 2 million shares. The
registered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of Sichuan Guangyuan
Certified Public Accountants Co., Ltd. and [HLTHYZ (2008) No. 12-006] of Sichuan Henglitai Certified Public
Accountants Co., Ltd. In December 2009, the Company obtained 100% equity of Changhong Air-conditioner by
consolidated under the same control. In 2017, the Company increased capital of 650 million Yuan to Changhong Air
Conditioner, after capital increased, registered capital of Sichuan Changhong comes to 850 million Yuan from 200
million Yuan, shareholding still counted as 100%.
18) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), was the original
Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up by Sichuan Changhong and
China Minmetals on May 22, 2001. Its registered capital was RMB 80 million upon establishment, of which, Sichuan
Changhong invested RMB 72 million, including RMB 69.3 million biding for the estate/ non-estate from original
Zhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of RMB2.7 million, accounting for 90% of the
registered capital; Chine Minmetals invested RMB 8 million in monetary capital accounting 10% of the registered
capital. The Company changed its name originally from Guangdong Changhong Electric Co., Ltd in July 2003. In
213
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
December 2009, the Company obtained 90% equity of Zhongshan Changhong by consolidated under same control.
10% equity held by China Minmetals has been transferred by Changhong Air-conditioner on April 11, 2010. On 25
May 2014, the Company increased RMB 36 million to Zhongshan Changhong, and Changhong AC increased RMB 4
million. In 2016, according to the overseas development strategy of the Company and the development and operation
needs of the subsidiaries, the Company and the wholly-owned subsidiary Changhong Air Conditioning have increased
capital of RMB 64 million Yuan to Zhongshan Changhong according to the existing shareholding ratio, among which
the capital increase of the Company was RMB 57.6 million Yuan, and the capital increase of Changhong Air
Conditioning was RMB 6.4 million Yuan. After the completion of this capital increase, the registered capital Zhongshan
Changhong shall increase to RMB 184 million Yuan, the shareholding ratio of the company and Changhong Air
Conditioning remained unchanged and was still 90% and 10%, of which the Company invested 165.6 million Yuan,
accounting for 90% of the registered capital, Changhong Air Conditioning invested 18.4 million Yuan, accounting for
10% of the registered capital.In March 2020, in accordance with the Company’s overseas development strategy and the
operation and development needs of its subsidiaries, the Company and its wholly-owned subsidiary Changhong Air
Conditioning increasedcapital of RMB 150 millionto Zhongshan Changhong according to the existing shareholding
ratios, of which the Companyincreasedcapital of RMB 135 million, Changhong Air-Conditioning increased capital
ofRMB 15 million. After the completion of capital increase, the registered capital of Zhongshan Changhong has
increased to RMB 334 million. The Company’s and Changhong’s shareholding ratios in Zhongshan Changhong remain
unchanged at 90% and 10%, of which the Company funded RMB 300.6 million, accounting for 90% of the registered
capital, while Changhong Air Conditioning fundedRMB 33.4 million, accounting for 10% of the registered capital.
19) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was the state-owned company
originally approved by People’s Government of Hefei Province and established authorized by SASAC of Hefei City. On July 14,
2008, 100% state-owned equity of Meiling Group has freely transferred to Xingtai Holding by Hefei SASAC.
Agreement by the approval of < State-owned property agreement transfer from Meiling Group> [ HGZCQ (2010)
No.34] of Hefei SASAC on April 9, 2010, 100% state-owned property of Meiling Group after partial assets and
liabilities separated transferred to the Company from Xingtai Holding as amount of RMB 113.2 million. The
re-registration of industrial and commercial procedure for Meiling Group after separated partial assets liability has
finished on July 28, 2010. The new Meiling Group has register capital of RMB 80 million, and has been verified by the
[AD (2010) YZD No. 016] from Anhui Auding CPAs Co., Ltd.
20) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd.( hereinafter referred to as EquatorHousehold Appliance) was the
Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR INVESTMENTS (USA) INC.( EQUATOR
for short), which have been approved by the [SWZWFZZ(2004) No.0103] of Approval Certificate of Foreign
Enterprise from People’s Government of Anhui Province. Its registered capital was US$ 3 million upon establishment,
of which, Sino company invested US$ 2.25 million in machinery equipment, accounting 75% of the registered capital
while foreign company invested US$ 0.5 million in monetary capital and US$ 0.25 million in intangible assets,
amounting to US$0.75 million, accounting 25% of the registered capital. The above mentioned investment verified by
the verification report of [WYAYZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd. In July 2007, approved by
[HWJ (2007) No.136] from Foreign Trade Economic Cooperation Bureau of Hefei City, 25% equity held by
EQUATOR transferred to Anhui Meiling Electric Co., Ltd. Totally. The Company’s register capital came into RMB
24,793,200 after transference, and was not the joint-venture any more. 25% equity owned by Anhui Meiling Electric
Co., Ltd has been transferred totally to original Meiling Group in July 2009.
21) Hefei Equator Appliance Co., Ltd.(hereinafter referred to as Equator Appliance) was jointly set up by original Meiling
214
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Group and Yingkaite Appliance on September 26, 2007. Its register capital was RMB 12 million, among which, original
Meiling Group invested 8,670,600 Yuan in monetary capital, accounting 72.255% in registered capital; Equator
Appliance invested 3,329,400 Yuan in the assessment value of intangible assets (land-use right), accounting 27.745% of
total registered capital. The investment being verified by [WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
22) Hongyuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hongyuan Ground Energy)
was established on 28 August 2015, it is a limited liability company authorized by Administration for Industry and
Commerce of Peicheng District, Mianyang, Sichuan, contributed by Sichuan Changhong Air Conditioner Co., Ltd
(hereinafter referred to as Changhong Air Conditioner) and Hengyouyuan Technology Development Group Co., Ltd.
together. Registered capital amounted as 50 million Yuan, including 25.5 million Yuan contributed by Changhong Air
Conditioner in cash, a 51% in total registered capital; Hengyouyuan Technology Development Group Co., Ltd. invested
24.5 million Yuan in cash, a 49% in registered capital.
23) Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hongyuan Zhongshan)
was established and invested on 18 July 2017 with registered capital of 15 million Yuan, The Hongyuan Ground Energy
Heat Pump Tech. Co., Ltd contributed 1.5 million Yuan with own funds and takes 100% in the registered capital.In
2018, the shareholdes of the Hongyuan Zhongshan decided to increase capital of 30 million Yuan, and contributed by
the shareholder Hongyuan Ground Energy; thus registered capital of Hongyuan Zhongshan up to 45 million Yuan
24) Meiling Candy Washing Machine Co., Ltd. (hereinafter referred to as Meiling Candy) was established and
registered on 27 April 2017, which was contributed by the Company and Candy Hoover Group S.r.l. together.
Registered capital counted as 150 million Yuan, including 90 million Yuan invested by the Company, a 60% in
registered capital.
25) Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) was established on 6 Jan.
2017, the wholly-owned subsidiary of Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan
Changhong) with registered capital of one million Yuan
26) Hebei Hongmao Household Appliance Technology Co., Ltd. (hereinafter referred to as Hebei Hongmao) was
established on 21 July 2017 with registered capital of 5 million Yuan. Changhong Ridian invested 5 million Yuan by
own fund and takes 100% in registered capital.
27) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Anhui Tuoxing) was established on 20 May 2019
with registered capital of 10 million Yuan and it is the subsidiary of Zhongke Meiling with fully-owned establishment.
As of June 30, 2021, actually 10 million yuan contributed.
28) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines with registered
capital of US$ 1,000,000, takes 100% of the equity. As of December 31, 2020, the Company has invested
US$ 1,000,000,
29) Hefei Changhong Meiling Life Electric Co., Ltd. (hereinafter referred to as Changmei Life) was established on 24
December 2020, jointly established by the Company and Ningbo Hongling Enterprise Management Partnership
(Limited Partnership). As of June 30, 2021, the Company actually contributed 35 million yuan, representing 70% of the
equity while 15 million yuan invested by Ningbo Hongling Enterprise Management Partnership (Limited Partnership),
a 30% takes in the equity.
215
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
30) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) was established on 4
September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registered capital of 10 million yuan.
As of June 30, 2021, actually 10 million yuan contributed.
(2) Major non-wholly-owned subsidiary
Gains/losses Dividend distributed
Balance of
Shareholding ratio attributable to to minority
Subsidiary minority’s interest at
of minority minority in Current announced in
period-end
Period Current Period
Zhongke Meiling 36.7317% 19,037,359.58 1,598,892.00 86,252,629.03
Hongyuan Ground
49.00% -4,964,708.04 12,147,092.24
Energy
Ridian Technology 0.9639% -16,945.64 1,276,558.15
Changmei Life 30.00% 5,211,265.13 20,211,265.13
(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary Non-current
Current assets Non-current assets Total assets Current liability Totalliabilities
liability
Zhongke
429,654,686.43 133,236,569.55 562,891,255.98 321,652,192.96 6,421,214.87 328,073,407.83
Meiling
Hongyuan
Ground 62,319,001.48 29,771,693.76 92,090,695.24 64,044,788.09 3,255,922.99 67,300,711.08
Energy
Ridian
297,773,560.26 48,537,604.93 346,311,165.19 213,436,113.88 432,142.84 213,868,256.72
Technology
Changmei Life 317,064,609.76 317,064,609.76 249,693,726.01 249,693,726.01
(Continued)
Opening balance
Subsidiary Non-current
Current assets Non-current assets Total assets Current liability Totalliabilities
liability
Zhongke
386,201,073.54 133,596,263.07 519,797,336.61 323,587,127.53 8,867,591.28 332,454,718.81
Meiling
Hongyuan
Ground 110,464,175.51 25,279,044.46 135,743,219.97 100,181,345.93 639,832.66 100,821,178.59
Energy
Ridian
572,516,245.87 50,889,561.24 623,405,807.11 488,419,038.99 484,047.64 488,903,086.63
Technology
Changmei Life
(Continued)
Subsidiary Current Period
216
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Subsidiary Current Period
Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
271,384,729.79 51,828,122.35 51,828,122.35 44,525,447.06
Meiling
Hongyuan
Ground 49,226,548.73 -10,132,057.22 -10,132,057.22 -57,732,313.13
Energy
Ridian
152,108,811.31 -2,059,812.01 -2,059,812.01 -206,486,307.38
Technology
Changmei
486,144,189.56 17,370,883.75 17,370,883.75 61,431,363.80
Life
(Continued)
Last Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke
113,979,900.96 3,187,502.65 3,187,502.65 -1,593,316.20
Meiling
Hongyuan
Ground 89,983,710.53 -9,754,270.96 -9,754,270.96 6,460,975.38
Energy
Ridian
388,868,705.58 8,761,499.08 8,761,499.08 -79,204,317.51
Technology
Changmei
Life
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation
statement scope: nil
2. Changes of owner’ equity shares in subsidiary and its impacts: nil
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
Shareholding Accounting
ratio（%) treatment for
Main office Registe Business investment of
Joint venture or associate enterprise place r place nature Direct Indire joint venture or
ly ctly associate
enterprise
Associated companies：
1.ChanghongRubaElectricCompany Lahore, Manufactures,
Lahore 40.00 Equity
(Private)Ltd. Pakistan sales
2.Hefei Xingmei Assets Management Co., Hefei Hefei Rental, 48.28 Equity
217
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Shareholding Accounting
ratio（%) treatment for
Main office Registe Business investment of
Joint venture or associate enterprise place r place nature Direct Indire joint venture or
ly ctly associate
enterprise
Ltd. agency
3.Sichuan Zhiyijia Network Technology
Mianyang Mianyang Sales 50.00 Equity
Co., Ltd.
4.Hongyuan Ground Energy Heat Tech. R & D, sales,
Mianyang Mianyang 49.00 Equity
Co., Ltd after-sales
5.Sichuan Tianyou Guigu Technology Co., Manufactures,
Mianyang Mianyang 25.00 Equity
Ltd sales
R&D,
6.Chengdu Guigu Environmental Tech. Co.,
Chengdu Chengdu manufacturin 25.00 Equity
Ltd.
g and sales
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
Ending balance/Current Period
Hefei Xingmei Hongyuan Sichuan Tianyou
Item ChanghongRubaEl Sichuan Zhiyijia Chengdu Guigu
Assets Ground Energy Guigu
ectricCompany(Pri Network Technology Environmental
Management Heat Tech. Co., Technology Co.,
vate)Ltd. Co., Ltd. Tech. Co., Ltd.
Co., Ltd. Ltd Ltd
Current assets 134,730.09 40,469,336.49 11,295,307.29 24,228,107.02
119,979,518.16 4,209,479,633.63
Including: cash and
7,210,015.53 27,526.83 104,814.25 4,364,075.98 9,789,062.89
cash equivalent 2,349,292,997.85
Non-current assets 44,109,181.42 18,174,212.08 9,751,159.60 9,249,737.02 12,352.49 13,419,496.74
Total assets 18,308,942.17 49,719,073.51 11,307,659.78 37,647,603.76
164,088,699.58 4,219,230,793.23
Current liability 5,137,337.05 6,374,225.39 116,070.34 17,034,439.84
171,913,449.12 4,157,099,291.25
Non-current
2,221,938.05 1,977,248.32
liability
Total liabilities 5,137,337.05 6,374,225.39 116,070.34 19,011,688.16
171,913,449.12 4,159,321,229.30
Minority's interest 1,083,928.80
Equity attributable
to shareholder of -7,824,749.54 13,171,605.12 59,909,563.93 43,344,848.12 11,191,589.44 17,551,986.80
parent company
Share of net assets
measured by -3,129,899.82 6,359,250.95 29,954,781.97 21,238,975.58 2,797,897.36 4,387,996.70
shareholding
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized profit of
the internal
265,726.62 7,821,342.04 60,650.76 4,349.86 10,147.35
downstream
transactions
218
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance/Current Period
Hefei Xingmei Hongyuan Sichuan Tianyou
Item ChanghongRubaEl Sichuan Zhiyijia Chengdu Guigu
Assets Ground Energy Guigu
ectricCompany(Pri Network Technology Environmental
Management Heat Tech. Co., Technology Co.,
vate)Ltd. Co., Ltd. Tech. Co., Ltd.
Co., Ltd. Ltd Ltd
Unrealized profit of
the internal
upstream
transactions
Other 3,395,626.44
Book value of the
equity investment
6,359,250.95 22,955,317.21 21,178,324.82 2,793,547.50 5,794,077.28
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 1,673,087.14 718,023.89 7,596,668.97
129,037,750.98 5,593,676,163.39
Financial expenses 387,772.68 236,147.00 -33,239,098.14 338.80 -59,414.10 -51,562.20
Income tax
1,709,882.92 147,397.82 -
expenses
Net profit 7,290,919.13 -967,324.02 -27,599,431.03 -226,371.54 -1,079,748.77
-1,875,733.81
Net profit of
discontinuing
operation
Other
comprehensive -148,798.81
income
Total
comprehensive 7,142,120.32 -967,324.02 -27,599,431.03 - 1,875,733.81 -226,371.54 -1,079,748.77
income
Dividend received
from associate
enterprise in
Current Period
(Continued)
Openingbalance/LastPeriod
Hefei Xingmei Hongyuan
Item ChanghongRuba Sichuan Zhiyijia Sichuan Tianyou Chengdu Guigu
Assets Ground Energy
ElectricCompany( Network Technology Guigu Technology Environmental
Management Heat Tech. Co.,
Private)Ltd. Co., Ltd. Co., Ltd Tech. Co., Ltd.
Co., Ltd. Ltd
17,707,474.4
Current assets 68,287,114.60 626,580.92 40,622,241.47 21,480,727.03
3,812,812,831.86 4
Including: cash and
5,536,272.95 119,477.66 52,958.51 10,450,786.16 2,371,663.95
cash equivalent 2,996,535,171.99
13,175,012.6
Non-current assets 45,830,745.35 18,704,537.29 1,226,646.52 10,161,277.73 12,352.49
2
Total assets 50,783,519.20 21,493,079.52 30,882,487.0
219
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Openingbalance/LastPeriod
Hefei Xingmei Hongyuan
Item ChanghongRuba Sichuan Zhiyijia Sichuan Tianyou Chengdu Guigu
Assets Ground Energy
ElectricCompany( Network Technology Guigu Technology Environmental
Management Heat Tech. Co.,
Private)Ltd. Co., Ltd. Co., Ltd Tech. Co., Ltd.
Co., Ltd. Ltd
114,117,859.95 19,331,118.21 3,814,039,478.38 6
19,463,087.1
Current liability 5,192,189.07 5,562,937.27 10,075,118.54
129,084,729.80 3,724,855,931.57 6
Non-current liability - 117,900.00 1,886,933.19
21,350,020.3
Total liabilities 5,192,189.07 5,562,937.27 10,075,118.54
129,084,729.80 3,724,973,831.57 5
Minority's interest 822,750.86
Equity attributable
to shareholder of 89,065,646.81 45,220,581.93 11,417,960.98 8,709,715.85
-14,966,869.86 14,138,929.14
parent company
Share of net assets
measured by -5,986,747.94 6,826,274.99 44,532,823.41 22,158,085.15 2,854,490.25 2,177,428.96
shareholding
Adjustment
--Goodwill 821,877.28 3,887,027.34
Unrealized profit of
the internal
49,697.83 6,191,361.16 54,975.58 4,398.74 24,449.53
downstream
transactions
Unrealized profit of
the internal upstream
transactions
Other 5,937,050.11
Book value of the
equity investment
6,826,274.99 39,163,339.53 22,103,109.57 2,850,091.51 6,040,006.77
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 45,300,541.58 23,259,797.54 10,087.61 1,501,031.58
3,605,343,938.12
Financial expenses 10,265,459.27 -1,117.38 -22,628,943.85 1,359.95 -134,260.28 124,588.98
Income tax expenses 1,037,833.62
Net profit -639,886.66 5,881,057.16 -128,904.93 23,543.66 -4,433,824.06
-11,109,497.99
Net profit of
discontinuing
operation
Other
comprehensive 188,871.84
income
Total comprehensive
-639,886.66 5,881,057.16 -128,904.93 23,543.66 -4,433,824.06
income -10,920,626.15
Dividend received 6,649,787.97
220
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Openingbalance/LastPeriod
Hefei Xingmei Hongyuan
Item ChanghongRuba Sichuan Zhiyijia Sichuan Tianyou Chengdu Guigu
Assets Ground Energy
ElectricCompany( Network Technology Guigu Technology Environmental
Management Heat Tech. Co.,
Private)Ltd. Co., Ltd. Co., Ltd Tech. Co., Ltd.
Co., Ltd. Ltd
from associate
enterprise in Current
Period
(4) Financial summary for non-important Joint venture and associate enterprise
Ending balance/Current
Item Opening balance/Last Period
Period
Associated companies：
Total book value of investment
Total amount measured by shareholding
ratio
--Net profit -69,558.59 -129,133.66
--Other comprehensiveincome
-- Total comprehensiveincome -69,558.59 -129,133.66
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) Excess loss occurred in joint venture or affiliates: Nil
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevant risks related with financial instrument
The major financial instruments of the Company include borrowings, account receivables, account
payable, Trading financial assets, Trading financial liability, the details of which are set out in Note VI.
Risks related to these financial instruments include exchange risks and interest rate risks. The
management of the Company controls and monitors the risk exposures to ensure the above risks are
under control.
In connection with exchange risks, in order to prevent from exchange risks arising from foreign
currency transaction amount, foreign currency dominated loans and interest expenditure, the Company
entered into several forward exchange contracts with banks. Fair value of the forward exchange
contract which has been recognized as derivative financial instrument has been included in profits and
221
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
losses. As export business is increasing, if risks that are out of control of the Company occur such as
appreciation of RMB, the Company will mitigate the relevant risks by adjusting its sales policy.
The Company’s interest rate risk arises from bank borrowings and interest-bearing debt. Financial
liabilities at floating rate expose the Company to cash flow interest rate risk, and financial liabilities at
fixed rate expose the Company to fair value interest rate risk. The Company will determine the
respective proportion of contracts at fixed and floating rates based on the prevailing market conditions.
As of 30 June 2021, the interest-bearing debts mainly referred to borrowing contracts at floating rate
denominated in RMB with total amount of 810,984,823.95 Yuan, the floating rate loan contract
measured by RMB amounted as 542,000,000.00 Yuan in total; borrowing contracts at fixed rate
denominated in USD with total amount of 96,901,500.00 Yuan; borrowing contracts at fixed rate
denominated in IDR with total amount of 8,160,000.00 Yuan. Risks relating to change of fair value of
financial instruments arising from movement of interest rate mainly related to bank borrowings at
fixed rate. As for borrowings at fixed rate, the Company aims to keep its floating rate. Risks relating to
change of cash flow of financial instruments arising from movement of interest rate mainly related to
bank borrowings at floating rate. The Company establishes its policy to keep floating rate for these
borrowings so as to eliminate fair value risk arising from movement of interest rate.
X. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
F ai r v al u e at p e r i o d - e n d
Item st nd
1 level 2 level 3rd level Total
I. Continuous fair value
— — — —
measurement
(i) Trading financial assets 28,746,156.57 726,926,621.92 755,672,778.49
1.Financial assets measured at fair
value and whose changes are 28,746,156.57 726,926,621.92 755,672,778.49
included in current gains/losses
Including: Derivative financial
28,746,156.57 28,746,156.57
assets
Principal and Interest of
726,926,621.92 726,926,621.92
Wealth Management Products
(ii) Other non-current financial
43,148,931.34 505,000,000.00 548,148,931.34
assets
(iii) Receivables financing 1,132,467,568.98 1,132,467,568.98
Total assets continuously
28,746,156.57 770,075,553.26 1,637,467,568.98 2,436,289,278.81
measured at fair value
(ii) Trading financial liability 2,746,170.22 2,746,170.22
1. Financial liabilities measured by
fair value and with variation 2,746,170.22 2,746,170.22
reckoned into current gains/losses
Including: Derivative financial 2,746,170.22 2,746,170.22
222
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
F ai r v al u e at p e r i o d - e n d
Item
1st level 2nd level 3rd level Total
liability
Total liabilities continuously
2,746,170.22 2,746,170.22
measured at fair value
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
The company's fair value measurement items are futures contracts and foreign exchange options. The
market price of futures contracts is determined based on the closing price of the futures contract at the
end of the period; the market price of foreign exchange options is determined based on the quotation
of contract products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous second-level fair value measurement items
The fair value measurement items are long-term investments in the fund company. For long-term
investments in fund companies, the assessed book value can represent the best estimate of fair value
within the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous third-level fair value measurement items
The company’s fair value measurement items are investments in Sichuan Changhong Group Finance
Co., Ltd. and Huishang Bank Co., Ltd. Since there is no active market quotation and no major changes
have been found in the investment until the reporting period, the investment cost represents the best
estimate of the fair value within the scope, so its cost is regarded as the fair value. Due to the short
remaining period of the receivables financing, the book value is close to the fair value, and the face
amount is used as the fair value.
XI. Related parties and related transaction
(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Regist Share-holdin Voting rights
Controlling shareholder and Business
ration Registered capital g ratio in the ratio in the
ultimate controller nature
place Company Company
Sichuan Changhong Electric Co., Miany Manufactur
4,616,244,222.00 26.98% 26.98%
Ltd. ang e and sales
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan Changhong Electric Co., LTD,
and the SASAC Mianyang office holds 100.00% equity interests of Sichuan Changhong Electronic Holding Group,
223
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
which means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
Increase
Decrease
Controlling shareholder Opening balance this Ending balance
this period
period
Sichuan Changhong Electric Co.,
4,616,244,222.00 4,616,244,222.00
Ltd.
(3) Shares held by the controlling shareholder and its changes on equity
Amount of shares held Shareholding ratio
Controlling shareholder Ratio at
Ratio at
Ending balance Opening balance period-beginnin
period-end
g
Sichuan Changhong Electric Co.,
281,832,434.00 281,832,434.00 26.98% 26.98%
Ltd.
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Major Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) major
joint venture and associated enterprise”. Other Joint venture and associated enterprise that have related
transactions occurred with the Company in Current Period or occurred in last period, and with balance
results:
Joint venture and associated enterprise Relationship with the company
Hefei Meiling Solar Energy Technology Co., Ltd. Associated enterprise of subsidiary Meiling Group
Changhong Ruba Electric Company (Private) Ltd. Associated enterprise of subsidiary Zhongshan Changhong
Hefei Xingmei Assets Management Co., Ltd. Associated enterprise of the Company
Associated enterprise of the Company, has the same
Sichuan Zhiyijia Network Technology Co., Ltd.
controlling shareholder and actual control of the Company
Associated enterprise of subsidiary Changhong
Hongyuan Ground Energy Heat Tech. Co., Ltd
Air-conditioner
Associated enterprise of subsidiary Changhong
Sichuan Tianyou Guigu Technology Co., Ltd
Air-conditioner
Associated enterprise of subsidiary Changhong
Chengdu Guigu Environmental Tech. Co., Ltd.
Air-conditioner
4. Other related party
Other related party Relationship with the company
Sichuan Changhong International Travel Service Co., Control by same controlling shareholder and ultimate
Ltd. controller
224
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Hunan Grand-Pro Intelligent Tech. Company
controller
CHANGHONG.ELECTRIC.(AUSTRALIA) Control by same controlling shareholder and ultimate
PTY.LTD. controller
Control by same controlling shareholder and ultimate
CHANGHONG ELECTRIC MIDDLE EAST FZCO
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic Products Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Mold Plastic Tech. Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Europe Electric s.r.o
controller
Control by same controlling shareholder and ultimate
Changhong Huayi Compressor Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Jijia Fine Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Minsheng Logistics Co., Ltd.
controller
Sichuan Service Exp. Appliance Service Chain Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Precision Electronics Tech. Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
PT.CHANGHONG ELECTRIC INDONESIA
controller
Control by same controlling shareholder and ultimate
CHANGHONG (HK) TRADING LIMITED
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Device Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Chengdu Changhong Electronic Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Lejiayi Chain Management Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongwei Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial Co., Ltd.
controller
Changhong International Holdings (Hong Kong) Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Guangdong Changhong Electronics Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Package Printing Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Solar Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Supply Co. Ltd.
controller
225
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Sichuan Hongxin Software Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Network Technology Co., Ltd.
controller
Guangyuan Changhong Electronic Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Yuanxin Financial Lease Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Orion.PDP.Co.,ltd
controller
Control by same controlling shareholder and ultimate
081 Electronic Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong International Hotel Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Aichuang Science & Technology Co., Ltd.
controller
Sichuan Changhong Intelligent Manufacturing Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Property Services Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Huanyu Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Jiahong Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Ailian Science & Technology Co., Ltd.
controller
Sichuan Changhong Gerun Environmental Protection Control by same controlling shareholder and ultimate
Tech. Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Huafeng Enterprise Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Group Finance Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Leyijia Tradeing Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Grand-Pro Technology Co., Ltd.
controller
Zhongshan Guanghong Moulding Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Hongcheng Construction Engineering Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Jiechuang Lithium Battery Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Control by same controlling shareholder and ultimate
Mianyang Huafeng Interconnect Technology Co., Ltd
controller
Control by same controlling shareholder and ultimate
Sichuan Qiruike Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Hongmofang Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Intelligent Technology Co., Ltd.
controller
Associated enterprise of other enterprise that have the same
Sichuan Hongyu Metal Manufacturing Co., Ltd.
controlling shareholder
226
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Sichuan Hongran Green Energy Co., Ltd. Associated enterprise of controlling shareholder
Sichuan Changxin Refrigeration Parts Co., Ltd. Associated enterprise of controlling shareholder
Mianyang Highly Electric Co., Ltd. Associated enterprise of controlling shareholder
(ii) Related transactions
1. Purchasing commodity
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Purchasing commodity 47,151.73 28,634.55
Sichuan Changhong Electric Co., Ltd. Purchasing commodity 31,287.06 18,465.23
Sichuan Changxin Refrigeration Parts Co., Ltd. Purchasing commodity 29,722.49 13,415.61
Changhong Huayi Compressor Co., Ltd. Purchasing commodity 25,353.49 17,759.15
Sichuan Changhong Jijia Fine Co., Ltd. Purchasing commodity 24,414.33 13,209.22
Mianyang Highly Electric Co., Ltd. Purchasing commodity 18,284.13 7,870.76
Sichuan Changhong Package Printing Co., Ltd. Purchasing commodity 6,913.07 3,616.69
Sichuan Aichuang Science & Technology Co.,
Purchasing commodity 5,848.84 4,319.04
Ltd.
Changhong Ruba Electric Company (Private) Ltd. Purchasing commodity 4,715.18 4,630.78
Sichuan Ailian Science & Technology Co., Ltd. Purchasing commodity 1,934.07 1,641.27
Sichuan Changhong Electronic Products Co., Ltd. Purchasing commodity 1,797.64 1,209.94
Sichuan Changhong Precision Electronics Tech.
Purchasing commodity 1,291.84 744.35
Co., Ltd.
Changhong International Holdings (Hong Kong)
Purchasing commodity 672.20 870.43
Co., Ltd.
Sichuan Zhiyijia Network Technology Co., Ltd. Purchasing commodity 625.80 44.87
Hefei Changhong Industrial Co., Ltd. Purchasing commodity 293.88 14.65
Guangdong Changhong Electronics Co., Ltd. Purchasing commodity 254.71 196.21
Hunan Grand-Pro Intelligent Tech. Company Purchasing commodity 75.66 766.89
Zhongshan Guanghong Moulding Technology
Purchasing commodity 77.26
Co., Ltd.
081 Electronic Group Co., Ltd. Purchasing commodity 4.95 10.08
Sichuan Changhong Intelligent Manufacturing
Purchasing commodity 1.77 3.25
Technology Co., Ltd.
Sichuan Changhong New Energy Technology Co.,
Purchasing commodity 0.96 1.71
Ltd.
Chengdu Guigu Environmental Tech. Co., Ltd. Purchasing commodity 0.18
Sichuan Changhong Electronics Holding Group
Purchasing commodity 1.59
Co., Ltd.
Sichuan Changhong Property Services Co., Ltd. Purchasing commodity 0.03
Guangyuan Changhong Electronic Technology
Purchasing commodity 0.88
Co., Ltd.
227
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Service Exp. Appliance Service Chain
Purchasing commodity 0.19
Co., Ltd.
Hongyuan Ground Energy Heat Tech. Co., Ltd Purchasing commodity 374.67
Total 200,721.24 117,802.04
2. Accept the services
Related party Content Current Period Last Period
Sichuan Changhong Minsheng Logistics Co., Accept the
224,557,352.50 183,300,319.49
Ltd. services
Sichuan Service Exp. Appliance Service Chain Accept the
93,499,148.00 91,822,618.54
Co., Ltd. services
Changhong International Holdings (Hong Kong) Accept the
2,433,372.32
Co., Ltd. services
Accept the
Sichuan Jiahong Industrial Co., Ltd. 2,219,124.89 471,372.03
services
Accept the
Sichuan Changhong Electric Co., Ltd. 1,848,713.48 10,404,495.04
services
Accept the
Sichuan Hongwei Technology Co., Ltd. 1,630,024.98 4,108,738.76
services
Accept the
Sichuan Changhong Property Services Co., Ltd. 1,256,815.72 1,627,043.79
services
Sichuan Changhong Intelligent Manufacturing Accept the
637,456.72 884.96
Technology Co., Ltd. services
Accept the
Sichuan Hongxin Software Co., Ltd. 627,830.20 703,487.72
services
Sichuan Changhong Electronics Holding Group Accept the
410,018.80 711,931.57
Co., Ltd. services
Accept the
Guangdong Changhong Electronics Co., Ltd. 381,270.76 142,467.10
services
Sichuan Changhong International Travel Service Accept the
231,756.12 99,699.89
Co., Ltd. services
Sichuan Changhong Electronic Products Co., Accept the
124,574.71
Ltd. services
Sichuan Changhong Mold Plastic Tech. Co., Accept the
66,728.31 509,633.16
Ltd. services
Accept the
Sichuan Zhiyijia Network Technology Co., Ltd. 36,917.82 113,548.74
services
Sichuan Changhong International Hotel Co., Accept the
14,824.98 10,827.32
Ltd. services
Sichuan Aichuang Science & Technology Co., Accept the
13,211.15
Ltd. services
Accept the
Sichuan Changhong Jijia Fine Co., Ltd. 642,657.00
services
Sichuan Hongmofang Network Technology Co., Accept the
2,122.64
Ltd. services
Total 329,989,141.46 294,671,847.75
228
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
3. Purchase fuel and power
Related party Content Current Period Last Period
Sichuan Changhong Electric Co., Ltd. Accept fuel power 10,484,815.16 8,261,144.64
Sichuan Hongran Green Energy Co., Ltd. Accept fuel power 572,392.86 189,240.25
Guangdong Changhong Electronics Co., Ltd. Accept fuel power 520,124.75 463,030.92
Changhong Huayi Compressor Co., Ltd. Accept fuel power 202,230.10 188,715.05
Hefei Changhong New Energy Technology Co., Ltd. Accept fuel power 172,184.57 160,813.32
Sichuan Changhong Property Services Co., Ltd. Accept fuel power 12,564.80 6,680.80
Total 11,964,312.24 9,269,624.98
4. Sales of goods
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sichuan Zhiyijia Network Technology Co., Ltd. Sales of goods 328,665.84 179,508.62
CHANGHONG(HK)TRADINGLIMITED Sales of goods 13,687.72 37,764.29
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Sales of goods 13,068.52 8,464.02
Changhong International Holdings (Hong Kong) Co.,
Sales of goods 10,567.62 3,122.61
Ltd.
Sichuan Changxin Refrigeration Parts Co., Ltd. Sales of goods 8,177.09 5,105.82
Changhong Europe Electric s.r.o Sales of goods 5,608.18 1,092.95
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD Sales of goods 5,310.94 5,137.25
Sichuan Changhong Jijia Fine Co., Ltd. Sales of goods 3,677.37 2,541.50
Changhong Ruba Electric Company (Private) Ltd. Sales of goods 2,356.10 258.73
Orion.PDP.Co.,ltd Sales of goods 1,985.69 1,049.00
Sichuan Changhong Electric Co., Ltd. Sales of goods 318.89 409.94
Sichuan Service Exp. Appliance Service Chain Co.,
Sales of goods 293.76 194.88
Ltd.
Hongyuan Ground Energy Heat Tech. Co., Ltd Sales of goods 202.96 2,365.21
CHANGHONG ELECTRIC MIDDLE EAST FZCO Sales of goods 143.65 446.95
Sichuan Tianyou Guigu Technology Co., Ltd Sales of goods 50.64
Chengdu Guigu Environmental Tech. Co., Ltd. Sales of goods 41.36 62.47
PT.CHANGHONGELECTRICINDONESIA Sales of goods 27.80 670.07
Lejiayi Chain Management Co., Ltd. Sales of goods 18.04 451.13
Sichuan Aichuang Science & Technology Co., Ltd. Sales of goods 16.47 24.33
Guangdong Changhong Electronics Co., Ltd. Sales of goods 10.62 7.79
Sichuan Changhong Minsheng Logistics Co., Ltd. Sales of goods 9.73 42.12
Mianyang Leyijia Tradeing Chain Co., Ltd. Sales of goods 9.25
Guangyuan Changhong Electronic Technology Co.,
Sales of goods 8.07 0.35
Ltd.
229
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Hefei Changhong Industrial Co., Ltd. Sales of goods 7.89 0.24
Sichuan Changhong Real Estate Co., Ltd. Sales of goods 1.96
Sichuan Changhong Device Technology Co., Ltd. Sales of goods 0.08
081 Electronic Group Co., Ltd. Sales of goods 0.08
Sichuan Changhong Gerun Environmental Protection
Sales of goods 418.11
Tech. Co., Ltd.
Sichuan Huafeng Enterprise Group Co., Ltd. Sales of goods 20.28
Sichuan Changhong Power Source Co., Ltd. Sales of goods 1.81
Sichuan Changhong New Energy Technology Co.,
Sales of goods 31.18
Ltd.
Total
394,266.32 249,191.65
5. Provide the services
Related party Content Current Period Last Period
Hongyuan Ground Energy Heat Tech. Co., Ltd Provide the services 216,981.14
Sichuan Aichuang Science & Technology Co., Ltd. Provide the services 254,071.82 40,367.92
Sichuan Changhong Minsheng Logistics Co., Ltd Provide the services 189,986.96
Guangdong Changhong Electronics Co., Ltd. Provide the services 116,398.34
Sichuan Changhong Jijia Fine Co., Ltd. Provide the services 94,798.00 138,484.44
Sichuan Changhong Mold Plastic Tech. Co., Ltd. Provide the services 87,808.26 48,637.53
081 Electronic Group Co., Ltd. Provide the services 47,230.97
Sichuan Huafeng Enterprise Group Co., Ltd. Provide the services 13,205.66 174,311.83
Sichuan Zhiyijia Network Technology Co., Ltd. Provide the services 12,600.00
Sichuan Changhong Electronic Products Co., Ltd. Provide the services 11,021.81
Sichuan Changhong Gerun Environmental Protection
Provide the services 9,433.96
Tech. Co., Ltd.
Chengdu Guigu Environmental Tech. Co., Ltd. Provide the services 8,874.24
Sichuan Changhong Precision Electronics Tech. Co.,
Provide the services 6,434.91
Ltd.
Sichuan Hongwei Technology Co., Ltd. Provide the services 1,440.00
Sichuan Changhong Electronics Holding Group Co.,
Provide the services -10,800.00
Ltd.
Sichuan Changhong Network Technology Co., Ltd. Provide the services -34,142.50
Sichuan Changhong Electric Co., Ltd. Provide the services -90,632.94 208,530.97
Sichuan Changhong Intelligent Technology Co., Ltd. Provide the services 547,177.50
Sichuan Changhong Intelligent Manufacturing
Provide the services 494,545.00
Technology Co., Ltd.
Sichuan Changhong Device Technology Co., Ltd. Provide the services 105,644.50
Sichuan Changhong New Energy Technology Co., Provide the services 113,853.33
230
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Related party Content Current Period Last Period
Ltd.
Total 934,710.63 1,871,553.02
6. Provide fuel power
Related party Content Current Period Last Period
Sichuan Changhong Mold Plastic Tech. Co.,
Provide fuel power 3,510,461.21 2,965,740.57
Ltd.
Sichuan Changhong Device Technology Co.,
Provide fuel power 310,921.71 361,054.22
Ltd.
Sichuan Changhong Jijia Fine Co., Ltd. Provide fuel power 76,952.28 65,789.86
Sichuan Changhong Minsheng Logistics Co.,
Provide fuel power 28,024.31 34,091.79
Ltd.
Sichuan Zhiyijia Network Technology Co.,
Provide fuel power 25,002.79 16,480.49
Ltd.
Changhong International Holdings (Hong
Provide fuel power 23,176.99
Kong) Co., Ltd.
Guangdong Changhong Electronics Co., Ltd. Provide fuel power 5,371.01 12,670.97
Sichuan Changhong Precision Electronics
Provide fuel power 5,186.20 4,085.08
Tech. Co., Ltd.
Total 3,985,096.50 3,459,912.98
Businesses between the Company and its connected persons are generally conducted under market operation rules as if
they were the same as other business counter parties. For price of sale or purchase and provision of other labor service
between the Company and its related parties, the state pricing is applicable if the pricing do exists; in case of absence of
such state pricing, price is determined under market price; in case of absence of such market price, price is determined
by both parties at actual cost plus reasonable expenses; for some special services, the price of which cannot be
determined under the rule of cost plus expense, the price shall be determined by both parties by negotiation.
7. Related rental
(1) Rent out
Type of Leasing income in Leasing income in
Lessor Lessee
assets Current Period Last Period
Changhong Sichuan Changhong Mold Plastic Tech.
Apartment 215,400.00 249,003.66
Meiling Co., Ltd.
Changhong Sichuan Changhong Mold Plastic Tech.
Warehouse 143,182.65 173,480.38
Meiling Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Apartment 122,170.38 56,700.43
Meiling
Changhong Sichuan Zhiyijia Network Technology
Apartment 98,968.06 98,968.06
Meiling Co., Ltd.
Changhong Sichuan Changhong Minsheng
Apartment 92,000.16 69,201.18
Meiling Logistics Co., Ltd.
Changhong Sichuan Service Exp. Appliance
Apartment 79,200.00
Meiling Service Chain Co., Ltd.
231
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Type of Leasing income in Leasing income in
Lessor Lessee
assets Current Period Last Period
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Warehouse 77,419.25 66,900.76
Meiling
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Apartment 63,200.00 3,417.92
Meiling
Changhong Sichuan Changhong Mold Plastic Tech.
Workshop 31,119.62 357,577.84
Meiling Co., Ltd.
Changhong Sichuan Changhong Precision
Apartment 21,600.00 9,864.00
Meiling Electronics Tech. Co., Ltd.
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Forklift 20,123.09 12,713.38
Meiling
Changhong Sichuan Aichuang Science &
Warehouse 18,759.84 16,227.34
Meiling Technology Co., Ltd.
Changhong Sichuan Changhong Minsheng
Office 15,800.16
Meiling Logistics Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Warehouse 3,237.74
Meiling
Changhong Sichuan Service Exp. Appliance
Forklift 2,400.00 4,800.00
Meiling Service Chain Co., Ltd.
Changhong Sichuan Ailian Science & Technology
Warehouse 952.34 1,343.10
Meiling Co., Ltd.
Changhong
Hefei Changhong Industrial Co., Ltd. Forklift 177.50
Meiling
Changhong
Sichuan Changhong Jijia Fine Co., Ltd. Workshop 134,544.22
Meiling
Changhong Sichuan Aichuang Science &
Forklift 2,532.50
Meiling Technology Co., Ltd.
Changhong
Sichuan Hongwei Technology Co., Ltd. Apartment 31,200.00
Meiling
Changhong
Sichuan Changhong Mold Plastic Tech.
Air-conditio Workshop 2,962,527.42 2,962,527.42
Co., Ltd.
ner
Changhong
Air-conditio Sichuan Changhong Jijia Fine Co., Ltd. Workshop 1,839,508.14 4,292,185.61
ner
Changhong
Sichuan Changhong Mold Plastic Tech.
Air-conditio Equipment 672,368.04
Co., Ltd.
ner
Changhong
Air-conditio Sichuan Changhong Jijia Fine Co., Ltd. Equipment 618,666.19
ner
Changhong
Air-conditio Sichuan Changhong Electric Co., Ltd. Workshop 481,457.77 327,319.42
ner
Changhong
Chengdu Guigu Environmental Tech.
Air-conditio Workshop 28,403.67 28,403.67
Co., Ltd.
ner
Changhong
Meeting
Air-conditio Sichuan Changhong Electric Co., Ltd. 1,834.86
room
ner
Zhongshan Guangdong Changhong Electronics Office
22,485.99
Changhong Co., Ltd. building
Zhongshan Sichuan Changhong Mold Plastic Tech. 2# living
22,364.52 27,080.00
Changhong Co., Ltd. area
232
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Type of Leasing income in Leasing income in
Lessor Lessee
assets Current Period Last Period
Parts of the
Zhongshan Sichuan Changhong Minsheng office
22,148.58 16,422.70
Changhong Logistics Co., Ltd. building
rent-out
Zhongshan Sichuan Changhong Precision 2# living
21,000.00 25,400.00
Changhong Electronics Tech. Co., Ltd. area
Zhongshan Sichuan Changhong Device 2# living
3,735.44 10,861.40
Changhong Technology Co., Ltd. area
Zhongshan Guangdong Changhong Electronics 2# living
55,721.47
Changhong Co., Ltd. area
Jiangxi Sichuan Changhong Mold Plastic Tech.
Workshop 411,144.18 409,855.80
Meiling Co., Ltd.
Jiangxi Sichuan Changhong Minsheng Warehouse
6,857.14
Meiling Logistics Co., Ltd. Office
Zhongke Sichuan Changhong Minsheng
Workshop 783,911.94 1,310,400.00
Meiling Logistics Co., Ltd.
Ridian Sichuan Changhong Device
Workshop 1,087,270.76 764,656.24
Technology Technology Co., Ltd.
Ridian
Sichuan Hongwei Technology Co., Ltd. Workshop 47,314.29 45,257.14
Technology
Total 10,030,017.72 11,573,257.64
(2) Lessee of related parties
Leasing income
Leasing income in
Lessor Lessee Type of assets in Current
Last Period
Period
Sichuan Changhong Electronics Changhong
Staff dormitory 101,443.84
Holding Group Co., Ltd. Air-conditioner
Changhong Workshop,
Sichuan Changhong Electric Co., Ltd. 264,244.07
Air-conditioner Office
Guangdong Changhong Electronics Hongyuan
Staff dormitory 50,139.23 42,425.47
Co., Ltd. Ground Energy
Guangdong Changhong Electronics Zhongshan
Workshop 677,103.14 338,551.56
Co., Ltd. Changhong
Guangdong Changhong Electronics Zhongshan
Staff dormitory 67,231.64
Co., Ltd. Changhong
Mianyang
Sichuan Changhong Electric Co., Ltd. Workshop 1,630,727.51 1,766,436.48
Meiling
Sichuan Changhong Electronics Mianyang
Staff dormitory 4,363.60 25,087.32
Holding Group Co., Ltd. Meiling
Ridian
Sichuan Changhong Electric Co., Ltd. Staff dormitory 48,257.03
Technology
Guangdong Changhong Electronics Ridian
Staff dormitory 61,733.50 32,765.89
Co., Ltd. Technology
Sichuan Changhong Electric Co., Ltd. Meiling Group Office 885,487.38
Chengdu Changhong Electronic Hongmei
Office 310,722.13
Technology Co., Ltd. Intelligent
Total 2,525,510.82 3,781,208.97
233
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
8. Related guarantee
Maximum guarantee
amount Completed
Secured party Sponsored party Start Date due
(Y/N)
(in 10 thousand
Yuan)
Changhong
Jiangxi Meiling 10,000.00 2020.04.09 2021.04.09 Y
Meiling
Changhong
ChanghongRuba 2,103.51 2019.12.23 2021.01.15 Y
Meiling
Changhong
ChanghongRuba 1,831.50 2020.12.16 2021.12.07 N
Meiling
Changhong Ridian
3,000.00 2020.03.14 2021.03.13 N
Meiling Technology
Changhong Ridian
4,000.00 2020.03.30 2021.03.31 Y
Meiling Technology
Changhong Ridian
6,500.00 2020.08.22 2021.08.22 N
Meiling Technology
Changhong Ridian
5,000.00 2020.07.03 2021.07.02 N
Meiling Technology
Changhong Ridian
4,000.00 2021.03.31 2022.03.31 N
Meiling Technology
Changhong Ridian
5,000.00 2021.06.09 2021.12.31 N
Meiling Technology
Changhong
Zhongke Meiling 2,000.00 2020.12.25 2021.09.26 N
Meiling
Changhong
Zhongke Meiling 3,000.00 2020.09.22 2021.09.22 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.08.24 2021.08.24 Y
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.11.19 2021.11.18 N
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.03.10 2021.03.10 Y
Meiling
Changhong
Zhongke Meiling 1,500.00 2020.06.01 2021.03.12 Y
Meiling
Changhong
Zhongke Meiling 500.00 2020.06.30 2021.03.15 Y
Meiling
Changhong
Zhongke Meiling 5,000.00 2021.05.24 2022.05.24 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.12.30 2020.11.22 Y
Meiling
Changhong Zhongshan
20,000.00 2020.06.12 2021.03.10 Y
Meiling Changhong
Changhong Zhongshan
5,000.00 2020.03.09 2021.03.09 N
Meiling Changhong
Changhong Zhongshan
15,000.00 2020.01.10 2021.01.10 Y
Meiling Changhong
Changhong Zhongshan
5,500.00 2020.03.15 2021.03.15 Y
Meiling Changhong
Changhong Zhongshan
17,900.00 2020.04.14 2021.04.13 Y
Meiling Changhong
234
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
Secured party Sponsored party Start Date due
amount (Y/N)
Changhong Zhongshan
20,000.00 2020.03.30 2021.03.30 Y
Meiling Changhong
Changhong Zhongshan
12,000.00 2020.04.28 2021.04.28 Y
Meiling Changhong
Changhong Zhongshan
10,000.00 2020.08.31 2021.08.31 Y
Meiling Changhong
Changhong Zhongshan
15,000.00 2020.07.03 2021.07.02 N
Meiling Changhong
Changhong Zhongshan
20,000.00 2021.04.08 2022.03.18 N
Meiling Changhong
Changhong Zhongshan
18,000.00 2021.03.29 2022.03.29 N
Meiling Changhong
Changhong Zhongshan
13,000.00 2021.03.03 2022.03.03 N
Meiling Changhong
Changhong Zhongshan
10,000.00 2021.05.25 2022.05.25 N
Meiling Changhong
Changhong Zhongshan
9,000.00 2021.03.15 2022.03.15 N
Meiling Changhong
Changhong Zhongshan
20,000.00 2021.03.30 2022.03.30 N
Meiling Changhong
Changhong Nonferrous
1,000.00 2020.03.20 2021.03.05 Y
Meiling Metals
Changhong
Meiling Group 6,000.00 2020.03.26 2021.03.26 N
Meiling
Changhong
Meiling Group 10,000.00 2020.12.30 2021.12.29 N
Meiling
Changhong
Meiling Group 5,000.00 2021.03.05 2022.03.05 N
Meiling
Zhongke Meiling Anhui Tuoxing 500.00 2021.04.01 2022.03.31 N
Counter
guarantee:
Changhong
Jiangxi Meiling 10,000.00 2020.04.09 2021.04.09 Y
Meiling
Changhong
ChanghongRuba 2,103.51 2019.12.23 2021.01.15 Y
Meiling
Changhong
ChanghongRuba 1,831.50 2020.12.16 2021.12.07 N
Meiling
Ridian Changhong
3,000.00 2020.03.14 2021.03.13 N
Technology Meiling
Ridian Changhong
4,000.00 2020.03.30 2021.03.31 Y
Technology Meiling
Ridian Changhong
6,500.00 2020.08.22 2021.08.22 N
Technology Meiling
Ridian Changhong
5,000.00 2020.07.03 2021.07.02 N
Technology Meiling
Ridian Changhong
4,000.00 2021.03.31 2022.03.31 N
Technology Meiling
Ridian Changhong
5,000.00 2021.06.09 2021.12.31 N
Technology Meiling
Zhongke Meiling Changhong 2,000.00 2020.12.25 2021.09.26 N
235
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
Secured party Sponsored party Start Date due
amount (Y/N)
Meiling
Changhong
Zhongke Meiling 3,000.00 2020.09.22 2021.09.22 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2020.08.24 2021.08.24 Y
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.11.19 2021.11.18 N
Meiling
Changhong
Zhongke Meiling 1,000.00 2020.03.10 2021.03.10 Y
Meiling
Changhong
Zhongke Meiling 1,500.00 2020.06.01 2021.03.12 Y
Meiling
Changhong
Zhongke Meiling 500.00 2020.06.30 2021.03.15 Y
Meiling
Changhong
Zhongke Meiling 5,000.00 2021.05.24 2022.05.24 N
Meiling
Changhong
Zhongke Meiling 2,000.00 2019.12.30 2020.11.22 Y
Meiling
Zhongshan Changhong
20,000.00 2020.06.12 2021.03.10 Y
Changhong Meiling
Zhongshan Changhong
5,000.00 2020.03.09 2021.03.09 N
Changhong Meiling
Zhongshan Changhong
15,000.00 2020.01.10 2021.01.10 Y
Changhong Meiling
Zhongshan Changhong
5,500.00 2020.03.15 2021.03.15 Y
Changhong Meiling
Zhongshan Changhong
17,900.00 2020.04.14 2021.04.13 Y
Changhong Meiling
Zhongshan Changhong
20,000.00 2020.03.30 2021.03.30 Y
Changhong Meiling
Zhongshan Changhong
12,000.00 2020.04.28 2021.04.28 Y
Changhong Meiling
Zhongshan Changhong
10,000.00 2020.08.31 2021.08.31 Y
Changhong Meiling
Zhongshan Changhong
15,000.00 2020.07.03 2021.07.02 N
Changhong Meiling
Zhongshan Changhong
20,000.00 2021.04.08 2022.03.18 N
Changhong Meiling
Zhongshan Changhong
18,000.00 2021.03.29 2022.03.29 N
Changhong Meiling
Zhongshan Changhong
13,000.00 2021.03.03 2022.03.03 N
Changhong Meiling
Zhongshan Changhong
10,000.00 2021.05.25 2022.05.25 N
Changhong Meiling
Zhongshan Changhong
9,000.00 2021.03.15 2022.03.15 N
Changhong Meiling
Zhongshan Changhong
20,000.00 2021.03.30 2022.03.30 N
Changhong Meiling
Nonferrous Changhong
1,000.00 2020.03.20 2021.03.05 Y
Metals Meiling
Meiling Group Changhong 6,000.00 2020.03.26 2021.03.26 N
236
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Maximum guarantee Completed
Secured party Sponsored party Start Date due
amount (Y/N)
Meiling
Changhong
Meiling Group 10,000.00 2020.12.30 2021.12.29 N
Meiling
Changhong
Meiling Group 5,000.00 2021.03.05 2022.03.05 N
Meiling
9. Assets transfer of related parties
Related party Type Current Period Last Period
Purchase/ Purchase and
Sichuan Changhong Intelligent
construction of fixed 5,762,952.63 769,469.03
Manufacturing Technology Co., Ltd.
assets
Purchase and
Sichuan Changhong Electric Co., Ltd. construction of fixed 5,595.00
assets
Purchase intangible
Sichuan Hongxin Software Co., Ltd. 141,509.43
assets
Sichuan Changhong Mold Plastic Tech.
Purchasing fixed assets 521,211.50
Co., Ltd.
Purchase and
Sichuan Huanyu Industrial Co., Ltd. construction of fixed 366,972.48 2,164,755.99
assets
Purchase and
Sichuan Hongcheng Construction
construction of fixed 1,950,244.22
Engineering Co., Ltd.
assets
Purchase and
081 Electronic Group Co., Ltd. construction of fixed 1,058,420.18
assets
Purchase intangible
Sichuan Changhong Electric Co., Ltd. 471,698.11
assets
Sichuan Zhiyijia Network Technology
Purchasing fixed assets 816,132.79
Co., Ltd.
Sichuan Changhong Jineng Sunshine
Purchasing fixed assets 42,348.02
Technology Co., Ltd.
Total 9,806,905.44 4,264,403.94
10. Other
Current Period (in 10 Last Period (in 10
Related party Content
thousand Yuan) thousand Yuan)
Yuanxin Financial Lease Financing business, financing
34,194.22 1,875.83
Co., Ltd. expenses and financial leasing
11. Related transaction with Changhong Finance Company
(1) Saving balance
Interest income from
Name of company Ending balance Opening balance bank saving in the
period
237
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Interest income from
Name of company Ending balance Opening balance bank saving in the
period
Changhong Meiling Co., Ltd. 1,455,040,471.60 1,860,047,247.52 29,842,699.24
Sichuan Changhong Air-conditioner Co.,
630,595,432.94 134,802,966.64 1,882,678.21
Ltd.
Zhongshan Changhong Electric Co., Ltd. 423,266,221.83 404,582,475.31 2,869,751.36
Zhongke Meiling Cryogenic Technology
216,790,954.84 141,336,330.05 3,596,177.24
Co., Ltd.
Hefei Changhong Meiling Life
89,509,414.70 566,299.32
Appliances Co., Ltd.
Changhong Meiling Ridian Technology
40,393,724.88 162,196,324.57 1,691,311.68
Co., Ltd.
Ground Energy Heat Pump Tech.
14,816,171.21 69,211,263.89 775,423.53
(Zhongshan) Co., Ltd.
Anhui Tuoxing Technology Co., Ltd. 10,114,495.37 10,243,055.56 134,772.07
Hebei Hongmao Household Appliance
166,356.39 15,657,360.37 108,917.55
Technology Co., Ltd
Hongyuan Ground Energy Heat Pump
25,126.44 114,826.06 300.38
Tech. Co., Ltd
Hefei Meiling Group Holdings Limited 12,575.02 3,742.21 7.28
Mianyang Meiling Refrigeration Co.,
50,979.44 50,871.36 108.08
Ltd.
Jiangxi Meiling Electric Appliance Co.,
9,565.26 9,544.98 20.28
Ltd.
Total 2,880,791,489.92 2,798,256,008.52 41,468,466.22
12. Borrowing: nil
13. Accounts receivable factoring: nil
(iii) Come and go balance with related parties
1. Receivable items
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Sichuan Zhiyijia Network
Technology Co., Ltd. 1,091,290,661.24 11,516.14 152,851,050.10 5,950.95
receivable
Account CHANGHONG (HK)
TRADING LIMITED 109,551,244.01 74,561,075.45
receivable
Changhong International
Account
Holdings (Hong Kong) 63,115,711.15 23,280,926.68
receivable
Co., Ltd.
Account Changhong Ruba Electric
48,036,662.75 2,524,954.64 46,262,313.51 3,664,544.64
receivable Company (Private) Ltd.
CHANGHONG
Account
ELECTRIC 40,846,257.34 82,523,745.73
receivable
(AUSTRALIA) PTY.LTD.
238
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Changhong Europe
36,220,317.38 7,285,475.46
receivable Electric s.r.o
Account
Orion.PDP.Co.,ltd 16,160,376.81 1,365,471.85
receivable
Account Hongyuan Ground Energy
2,759,933.11 274,613.95 2,557,611.11 259,719.23
receivable Heat Tech. Co., Ltd
CHANGHONG
Account
ELECTRIC MIDDLE 635,699.68 1,641,684.42
receivable
EAST FZCO
Account Sichuan Changhong
585,639.57 18,640.40 1,648,021.88
receivable Electric Co., Ltd.
Account Sichuan Aichuang Science
572,239.19 1,235,293.51
receivable & Technology Co., Ltd.
Sichuan Service Exp.
Account
Appliance Service Chain 431,371.34 179,721.66
receivable
Co., Ltd.
Account Lejiayi Chain
Management Co., Ltd. 421,391.12 11,198.27 752,700.75 13,309.44
receivable
Account Sichuan Changhong Mold
377,414.84 193,981.98
receivable Plastic Tech. Co., Ltd.
Account PT.CHANGHONG
278,000.00 703,520.00
receivable ELECTRIC INDONESIA
Account Sichuan Huafeng
13,998.00
receivable Enterprise Group Co., Ltd.
Sichuan Changhong
Account Network Technology Co., 291,996.61
receivable Ltd.
Sichuan Changhong
Account
Electronic Products Co., 375,287.92
receivable
Ltd.
Sichuan Changhong
Account
International Hotel Co., 20,166.00
receivable
Ltd.
Sichuan Changhong
Account
Minsheng Logistics Co., 12,173.16
receivable
Ltd.
Account Guangdong Changhong
3,507.01
receivable Electronics Co., Ltd.
Account Sichuan Changhong
paid in Intelligent Manufacturing 1,156,014.00 2,191,049.27
advance Technology Co., Ltd.
Account Sichuan Service Exp.
paid in Appliance Service Chain 64,685.49
advance Co., Ltd.
Account
Sichuan Zhiyijia Network
paid in 16,813.41
Technology Co., Ltd.
advance
Account Sichuan Changhong
paid in Minsheng Logistics Co., 366,287.00
advance Ltd.
Other CHANGHONG (HK)
1,773,143.47
receivable TRADING LIMITED
239
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Sichuan Service Exp.
Other
Appliance Service Chain 200,000.00 200,000.00
receivable
Co., Ltd.
Other Hunan Grand-Pro
45,200.00 45,200.00
receivable Intelligent Tech. Company
Sichuan Changhong
Other
International Hotel Co., 39,550.00 39,550.00
receivable
Ltd.
Other Sichuan Changhong
2,657,173.57
receivable Electric Co., Ltd.
Other Sichuan Changhong Real
299,373.25
receivable Estate Co., Ltd.
Total 1,414,592,323.90 2,840,923.40 403,544,357.88 3,943,524.26
2. Payable items
Item Related party Ending balance Opening balance
Account
Sichuan Changhong Mold Plastic Tech. Co., Ltd. 233,841,328.64 44,726,533.64
payable
Account
Sichuan Changhong Jijia Fine Co., Ltd. 133,610,712.15 30,784,821.38
payable
Account
Changhong Huayi Compressor Co., Ltd. 105,879,312.73 24,556,917.25
payable
Account
Sichuan Changhong Electric Co., Ltd. 76,799,589.89 48,150,899.09
payable
Account
Sichuan Changxin Refrigeration Parts Co., Ltd. 57,033,970.42
payable
Account
Sichuan Changhong Package Printing Co., Ltd. 53,840,684.33 10,337,574.43
payable
Account Sichuan Aichuang Science & Technology Co.,
38,519,998.62 36,339,436.08
payable Ltd.
Account
Mianyang Highly Electric Co., Ltd. 25,685,924.67 10,035,029.02
payable
Account
Sichuan Ailian Science & Technology Co., Ltd. 12,939,462.28 3,067,909.39
payable
Account
Sichuan Changhong Electronic Products Co., Ltd. 11,062,588.35 2,388,369.91
payable
Account
Changhong Ruba Electric Company (Private) Ltd. 10,425,265.12 8,938,947.95
payable
Account Sichuan Changhong Precision Electronics Tech.
9,908,724.88 877,946.47
payable Co., Ltd.
Account Changhong International Holdings (Hong Kong)
6,713,126.24 1,502,240.80
payable Co., Ltd.
Account Sichuan Changhong Intelligent Manufacturing
5,504,701.91 962,930.89
payable Technology Co., Ltd.
Account
CHANGHONG (HK) TRADING LIMITED 3,052,516.27 3,052,516.27
payable
Account
Hefei Changhong Industrial Co., Ltd. 2,595,527.95 6,434,535.69
payable
240
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Account
Guangdong Changhong Electronics Co., Ltd. 1,955,036.10 848,590.31
payable
Account
Sichuan Changhong Minsheng Logistics Co., Ltd. 608,980.06 863,688.97
payable
Account Zhongshan Guanghong Moulding Technology
253,335.76
payable Co., Ltd.
Account Sichuan Service Exp. Appliance Service Chain
105,426.95 261,823.77
payable Co., Ltd.
Account
081 Electronic Group Co., Ltd. 61,292.73 136,168.13
payable
Account Sichuan Changhong Jineng Sunshine Technology
52,743.33 52,743.33
payable Co., Ltd.
Account Sichuan Changhong International Travel Service
44,678.00 50,552.00
payable Co., Ltd.
Account
Sichuan Hongxin Software Co., Ltd. 28,301.89
payable
Account
Sichuan Hongyu Metal Manufacturing Co., Ltd. 14,662.40
payable
Account Sichuan Changhong New Energy Technology Co.,
11,182.86 5,333.60
payable Ltd.
Account
Sichuan Hongwei Technology Co., Ltd. 3,225.71 3,225.71
payable
Account
Sichuan Changhong Power Source Co., Ltd. 1,870.82 1,870.82
payable
Account
Sichuan Changhong Device Technology Co., Ltd. 0.18
payable
Account
Sichuan Zhiyijia Network Technology Co., Ltd. 2,979,349.71
payable
Account
Hunan Grand-Pro Intelligent Tech. Company 433,594.69
payable
Account Sichuan Changhong Electronics Holding Group
6,687.52
payable Co., Ltd.
Contract Changhong International Holdings (Hong Kong)
3,124,634.35
liability Co., Ltd.
Contract
Lejiayi Chain Management Co., Ltd. 826,463.34 1,774,510.16
liability
Contract
Changhong Grand-Pro Technology Co., Ltd. 689,291.22
liability
Contract Sichuan Changhong Jiechuang Lithium Battery
684,955.75
liability Technology Co., Ltd.
Contract
Sichuan Changhong Electric Co., Ltd. 549,204.26 750,203.12
liability
Contract
Chengdu Guigu Environmental Tech. Co., Ltd. 329,148.67
liability
Contract
Sichuan Changhong Device Technology Co., Ltd. 59,317.08
liability
Contract
Sichuan Tianyou Guigu Technology Co., Ltd 52,176.99
liability
Contract
Sichuan Changhong Power Source Co., Ltd. 50,973.45
liability
Contract CHANGHONG ELECTRIC MIDDLE EAST
42,236.48
liability FZCO
241
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Contract
Orion.PDP.Co.,ltd 16,471.68
liability
Contract
Sichuan Changhong Minsheng Logistics Co., Ltd. 13,060.00 9,355.42
liability
Contract Sichuan Service Exp. Appliance Service Chain
12,939.29 12,736.12
liability Co., Ltd.
Contract Sichuan Changhong Gerun Environmental
5,090.51 5,090.51
liability Protection Tech. Co., Ltd.
Contract Sichuan Changhong Electronics Holding Group
5,080.00 5,080.00
liability Co., Ltd.
Contract
Hefei Changhong Industrial Co., Ltd. 3,903.44 4,022.06
liability
Contract
CHANGHONG (HK) TRADING LIMITED 936.52 945.91
liability
Contract Guangyuan Changhong Electronic Technology
442.48
liability Co., Ltd.
Contract
081 Electronic Group Co., Ltd. 22.61 25.55
liability
Contract
Hongyuan Ground Energy Heat Tech. Co., Ltd 108,490.57
liability
Contract
Sichuan Changhong Real Estate Co., Ltd. 2,154.65
liability
Other payable Yuanxin Financial Lease Co., Ltd. 112,566,076.90 44,276,743.76
Other payable Sichuan Changhong Minsheng Logistics Co., Ltd. 99,417,556.18 75,964,081.82
Other payable Sichuan Changhong Mold Plastic Tech. Co., Ltd. 1,763,861.48 1,700,295.88
Other payable Changhong Huayi Compressor Co., Ltd. 1,598,900.00 1,598,900.00
Sichuan Changhong Intelligent Manufacturing
Other payable 749,467.36 1,722,946.07
Technology Co., Ltd.
Other payable Sichuan Zhiyijia Network Technology Co., Ltd. 567,054.64 41,940.00
Sichuan Changhong Jineng Sunshine Technology
Other payable 500,000.00 500,000.00
Co., Ltd.
Other payable Sichuan Changhong Jijia Fine Co., Ltd. 419,345.69 400,500.00
Other payable Sichuan Changhong Electric Co., Ltd. 402,513.25 163,469.22
Other payable Sichuan Qiruike Technology Co., Ltd. 224,348.62
Other payable Sichuan Hongwei Technology Co., Ltd. 216,764.36
Other payable Hunan Grand-Pro Intelligent Tech. Company 200,000.00 250,000.00
Changhong International Holdings (Hong Kong)
Other payable 75,751.51
Co., Ltd.
Sichuan Changhong Electronics Holding Group
Other payable 62,721.60
Co., Ltd.
Other payable Sichuan Changhong Package Printing Co., Ltd. 57,232.00 50,000.00
Other payable Sichuan Changxin Refrigeration Parts Co., Ltd. 53,400.67 46,702.03
Other payable 081 Electronic Group Co., Ltd. 47,460.00 47,460.00
Other payable Guangdong Changhong Electronics Co., Ltd. 38,660.60
Other payable Chengdu Guigu Environmental Tech. Co., Ltd. 25,132.00
Other payable Sichuan Changhong Gerun Environmental 10,000.00 10,000.00
242
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Protection Tech. Co., Ltd.
Other payable Sichuan Changhong Property Services Co., Ltd. 1,404.40
Sichuan Changhong Precision Electronics Tech.
Other payable 779.19 0.01
Co., Ltd.
Other payable CHANGHONG (HK) TRADING LIMITED 32,607.64
Other payable Sichuan Jiahong Industrial Co., Ltd. 23,100.04
Total 1,016,018,949.81 367,301,597.36
(iv) Commitments from related parties: Nil
XII. Share-based payment: Nil
XIII. Contingency
1. Pending action or possible liabilities formed from arbitration: Nil
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
XIV. Commitments: Nil
XV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution: Nil
3. Major sales re turn : Nil
4. Other than the above mentioned events, the Company have no other events occurred after balance
sheet date.
XVI. Other significant matters
1. Correction o f p re vio us period s and in flu ence: Nil
2. Debt restru ctu ring: Nil
3. Assets rep lace ment: Nil
4. P ension p lan : Nil
243
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
5. Discon tinu ing ope ra tion: Nil
6. Branch in forma tion
In 10 thousand Yuan
Refrigerator, Small appliances
freezer Air-condition and kitchen and
Item Other division Salesin branch Total
Washing er bathroom
machine division
Operation income 475,905.65 418,292.47 66,691.55 17,913.07 18,526.81 960,275.93
Including: foreign
472,547.83 418,257.71 61,455.05 8,015.34 960,275.93
trade income
Income from
transactions 3,357.82 34.76 5,236.50 9,897.73 18,526.81
between divisions
Operation expenses 470,187.22 426,277.65 64,799.76 15,512.41 18,495.81 958,281.23
Operation profit 5,718.43 -7,985.18 1,891.79 2,400.66 31.00 1,994.70
Total assets 1,227,098.25 545,367.60 63,719.06 21,087.72 179,711.75 1,677,560.88
Totalliability 733,958.71 435,817.98 43,757.67 7,738.11 30,742.34 1,190,530.13
Supplementary
information
Depreciation and
10,151.39 7,303.81 235.57 231.74 -13.09 17,935.60
amortization expenses
Capital expenditure 5,175.48 3,976.65 0.37 789.16 9,941.66
7. Other major transactions and events shows impact on investor’s decision-making: Nil
XVII. Notes to main items of financial statement of parent company
1. Account receivable
(1) Presented according to the bad debt accrual method
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
1,653,473,613.80 87.76% 2,258,191.61 0.14% 1,651,215,422.19
bad debt provision by single item
Including: Related party payments 1,605,806,989.96 85.23% 1,907,017.88 0.12% 1,603,899,972.08
Account receivable with letter of
47,315,450.11 2.51% 47,315,450.11
credit
Account receivable with single
minor amount but withdrawal single 351,173.73 0.02% 351,173.73 100.00%
item bad debt provision
Account receivable withdrawal bad
230,537,906.56 12.24% 13,606,655.61 5.90% 216,931,250.95
debt provision by portfolio
Including: account receivable of
6,246,264.00 0.33% 1,249,252.80 20.00% 4,997,011.20
engineering customers
Receivables other than
224,291,642.56 11.91% 12,357,402.81 5.51% 211,934,239.75
engineering customers
244
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Total 1,884,011,520.36 100.00% 15,864,847.22 0.84% 1,868,146,673.14
(Continued)
Opening balance
Category Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that
withdrawal bad debt provision by 858,063,066.45 83.09% 3,370,366.42 0.39% 854,692,700.03
single item
Including: Related party payments 815,741,150.65 78.99% 2,956,149.11 0.36% 812,785,001.54
Account receivable with letter
38,179,742.75 3.70% 38,179,742.75
of credit
Account receivable with single
minor amount but withdrawal single 4,142,173.05 0.40% 414,217.31 10.00% 3,727,955.74
item bad debt provision
Account receivable withdrawal
174,658,647.31 16.91% 10,052,329.94 5.76% 164,606,317.37
bad debt provision by portfolio
Including: account receivable of
6,255,423.49 0.61% 1,250,265.60 19.99% 5,005,157.89
engineering customers
Receivables other than
168,403,223.82 16.31% 8,802,064.34 5.23% 159,601,159.48
engineering customers
Total 1,032,721,713.76 100.00% 13,422,696.36 1.30% 1,019,299,017.40
1) Provision for bad debts of account receivable on an individual basis
Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the
minor single receivables, and withdrawal bad debt provision by combination shows no risk
characteristic of the receivables, 1 client involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Ending balance
Account age Bad debt
Book balance Accrual ratio (%)
provision
Within 3 months (3 months included)
Over 3 months and within 6 months (6 months
included)
Over 6 months and within one year (One year
4,095.49
included)
Over one year - within 2 years (2 years
6,251,328.00 1,250,265.60 20.00%
included)
245
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Account age Bad debt
Book balance Accrual ratio (%)
provision
Over 2 years - within 3 years (3 years
50.00%
included)
Over 3 years 100.00%
Total 6,255,423.49 1,250,265.60
B. Receivables other than engineering customers
Ending balance
Account age
Book balance Bad debt Accrual ratio (%)
provision
Within 3 months (3 months included) 197,888,607.96 1,978,886.08 1.00%
Over 3 months and within 6 months (6 7,226,815.70 722,681.57 10.00%
months included)
Over 6 months and within one year (One 8,026,061.58 1,605,212.32 20.00%
year included)
Over one year - within 2 years (2 years 5,664,401.49 2,832,200.75 50.00%
included)
Over 2 years - within 3 years (3 years 1,336,668.72 1,069,334.98 80.00%
included)
Over 3 years 4,149,087.11 4,149,087.11 100.00%
224,291,642.56 12,357,402.81
Total
(2) By account age
Account age Ending balance
Within 3 months (3 months included) 1,775,034,371.14
Over 3 months and within 6 months (6 months
63,744,276.01
included)
Over 6 months and within one year (One year
15,973,988.88
included)
Over one year - within 2 years (2 years
17,736,404.67
included)
Over 2 years - within 3 years (3 years included) 7,361,457.13
Over 3 years 4,161,022.53
Total 1,884,011,520.36
(3) Bad debt reserves of the account receivable
Amount change in the period
Category Opening balance Collected or Resale or Ending balance
Accrual
switch back write-off
Bad debt
13,422,696.36 2,442,150.86 15,864,847.22
provision
Total 13,422,696.36 2,442,150.86 15,864,847.22
246
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
1,497,654,234.50 yuan, accounted for 79.49% of the receivables at balance of current period-end, the
bad debt provision amounted as 392,875.38 yuan.
(5) There are no receivables derecognized due to the transfer of financial assets.
(6) There are no receivables and the amount of assets and liabilities formed by continued involvement
2. Other account receivable
Item Ending balance Opening balance
Other account receivable 46,277,319.42 49,093,918.57
Total 46,277,319.42 49,093,918.57
(1) By nature
Nature Ending book balance Opening book balance
Related party in consolidation statement 7,774,669.44 3,521,237.00
Related party not in consolidation statement 200,000.00 200,000.00
Loans of employee’s pretty cash 3,933,825.65 5,697,517.11
Cash deposit 2,020,000.00 6,507,745.28
Export rebates 32,398,824.33 32,281,664.19
Other 935,978.02
Total 46,327,319.42 49,144,141.60
(2) Provision for bad debt of other receivable
First stage Second stage Third stage
Expected credit loss
Expected credit loss
Bad debt reserves Expected credit for the whole Total
for the whole
loss in next 12 duration (credit
duration (no credit
months impairment has
impairment)
occurred)
Balance as at 1 Jan.
223.03 50,000.00 50,223.03
2021
Book balance of other
account receivable in
— — — —
Current Period as at 30
Jun. 2021
--Transfer to the second
stage
--Transfer to the third
stage
--Reversal to the second
stage
--Reversal to the first
stage
247
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
First stage Second stage Third stage
Expected credit loss
Expected credit loss
Bad debt reserves Expected credit for the whole Total
for the whole
loss in next 12 duration (credit
duration (no credit
months impairment has
impairment)
occurred)
Provision in Current
-223.03 - -223.03
Period
Reversal in Current
Period
Conversion in Current
Period
Write off in Current
Period
Other change
Balance as at 30 Jun.
50,000.00 50,000.00
2021
(3) By account age
Account age Ending balance
Within 3 months (3 months included) 38,545,952.18
Over 3 months and within 6 months (6 months
1,011,408.29
included)
Over 6 months and within one year (One year
1,278,507.31
included)
over one year-within two years (2 years included) 1,122,830.00
Over 2 years - within 3 years (3 years included) 1,062,091.90
Over 3 years 3,306,529.74
Total 46,327,319.42
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the period
Proportion of the total Ending
period-end balance of balance of
Name of the unit Nature Ending balance Account age
other receivable bad debt
reserve
State Taxation
Bureau of Hefei
Export Within 3
Economic and 32,398,824.33 69.93%
rebates months
Technological
Development Zone
Hefei Changhong
Meiling Life Related party Within 3
4,394,963.87 9.49%
Appliances Co., payments months
Ltd.
Hefei Meiling
Related party
Electric Appliances 3,077,192.21 Over 3 years 6.64%
payments
Marketing Co., Ltd
248
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Proportion of the total Ending
period-end balance of balance of
Name of the unit Nature Ending balance Account age
other receivable bad debt
reserve
Within 3
Dai Tianlei Petty cash 462,317.60 1.00%
months
Li Di Petty cash 350,711.37 Within 3 years 0.76%
Total — 40,684,009.38 — 87.82%
(5) There are no receivables involving government subsidies
(6) There are no other receivables derecognized due to the transfer of financial assets.
(7) There are no other receivables and the amount of assets and liabilities formed by continued
involvement
249
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
3. Long-term equity investments
(1) Classification of long-term equity investments
Ending balance Opening balance
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Investment in subsidiaries:
Zhongke Meiling Cryogenic
42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00
Technology Co., Ltd.
Mianyang Meiling Refrigeration Co.,
95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Ltd.
Hefei Meiling Electric Appliances
54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00
Marketing Co., Ltd
Zhongshan Changhong Electric Co.,
304,856,419.37 304,856,419.37 304,856,419.37 304,856,419.37
Ltd.
Sichuan Changhong Air-conditioner
955,600,437.79 955,600,437.79 955,600,437.79 955,600,437.79
Co., Ltd.
Hefei Meiling Group Holdings
113,630,000.00 113,630,000.00 113,630,000.00 113,630,000.00
Limited
Jiangxi Meiling Electric Appliance
79,000,000.00 79,000,000.00 79,000,000.00 79,000,000.00
Co., Ltd.
Changhong Meiling Ridian
91,082,111.12 91,082,111.12 91,082,111.12 91,082,111.12
Technology Co., Ltd.
Meiling CANDY Washing Machine
60,000,000.00 27,675,208.01 32,324,791.99 60,000,000.00 27,675,208.01 32,324,791.99
Co., Ltd.
Hefei Meiling Wulian Technology
6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Co., Ltd
CH-Meiling.International
6,889,100.00 6,889,100.00 6,889,100.00 6,889,100.00
(Philippines) Inc.
Hefei Changhong Meiling Life
35,000,000.00 35,000,000.00
Appliances Co., Ltd.
Investment in associates:
250
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Hefei Xingmei Assets Management
6,359,250.95 6,359,250.95 6,826,274.99 6,826,274.99
Co., Ltd.
Sichuan Zhiyijia Network
30,776,659.24 30,776,659.24 45,354,700.69 45,354,700.69
Technology Co., Ltd.
Total 1,881,745,978.47 27,675,208.01 1,854,070,770.46 1,861,791,043.96 27,675,208.01 1,834,115,835.95
(2) Investment in subsidiaries
Increased in Decreased in Provision forimpairment Ending balance of
Invested enterprise Opening balance Ending balance
Current Period Current Period losses inthe Period impairment
Zhongke Meiling Cryogenic
42,652,000.00 42,652,000.00
Technology Co., Ltd.
Mianyang Meiling Refrigeration Co.,
95,000,000.00 95,000,000.00
Ltd.
Hefei Meiling Electric Appliances
54,900,000.00 54,900,000.00
Marketing Co., Ltd
Zhongshan Changhong Electric Co.,
304,856,419.37 304,856,419.37
Ltd.
Sichuan Changhong Air-conditioner
955,600,437.79 955,600,437.79
Co., Ltd.
Hefei Meiling Group Holdings Limited 113,630,000.00 113,630,000.00
Jiangxi Meiling Electric Appliance Co.,
79,000,000.00 79,000,000.00
Ltd.
Changhong Meiling Ridian Technology
91,082,111.12 91,082,111.12
Co., Ltd.
Hefei Changhong Meiling Life
35,000,000.00 35,000,000.00
Appliances Co., Ltd.
Meiling CANDY Washing Machine
60,000,000.00 60,000,000.00 27,675,208.01
Co., Ltd.
Hefei Meiling Wulian Technology Co.,
6,000,000.00 6,000,000.00
Ltd
251
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Increased in Decreased in Provision forimpairment Ending balance of
Invested enterprise Opening balance Ending balance
Current Period Current Period losses inthe Period impairment
CH-Meiling.International (Philippines)
6,889,100.00 6,889,100.00
Inc.
Total 1,809,610,068.28 35,000,000.00 1,844,610,068.28 27,675,208.01
(3) Investment in associates
Changes inCurrentPeriod
Adjustment Cash dividend Ending
Invested enterprise Opening balance Investment income Other Provision for Ending balance balance of
Additional Negative for other orprofit
recognizedunder equity impairment Other impairment
Investment Investment comprehensive announced to
equity change loss
income issued
Hefei Xingmei Assets Management Co.,
6,826,274.99 -467,024.04 6,359,250.95
Ltd.
Sichuan ZhiyijiaNetwork TechnologyCo.,
45,354,700.69 -14,578,041.45 30,776,659.24
Ltd.
Total 52,180,975.68 -15,045,065.49 37,135,910.19
252
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
4. Operation income, operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main business 3,102,350,117.09 2,860,557,418.34 2,453,463,713.88 2,260,946,436.99
Other business 873,401,787.20 841,056,783.21 760,500,119.30 761,172,953.16
Total 3,975,751,904.29 3,701,614,201.55 3,213,963,833.18 3,022,119,390.15
(2) Main business - Classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator, 2,809,476,859.57 2,589,201,634.89
2,201,687,822.75 2,028,605,037.68
freezer
Washing machine 232,248,515.69 216,526,918.33 102,710,982.12 103,454,823.52
Small household 55,241,125.67 49,594,600.28
appliances and
146,212,337.07 126,125,131.02
kitchen and
bathroom
Other 5,383,616.16 5,234,264.84 2,852,571.94 2,761,444.77
Total 3,102,350,117.09 2,860,557,418.34 2,453,463,713.88 2,260,946,436.99
(3) Main business - Classified according to region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 1,756,300,378.04 1,652,622,816.92 1,322,226,066.74 1,332,014,226.07
Overseas 1,346,049,739.05 1,207,934,601.42 1,131,237,647.14 928,932,210.92
Total 3,102,350,117.09 2,860,557,418.34 2,453,463,713.88 2,260,946,436.99
Top five clients in sales revenue amounted as 1,692,183,177.25 yuan, a 42.56% in total operation
income.
5. Investment income
Item Current Period Last Period
Long-term equity investment income by cost method 2,754,000.00 69,912,000.00
Long-term equity investment income by equity method -15,045,065.49 2,738,300.44
Investment income obtained from disposal of Trading financial assets 46,948,848.62 3,755,039.20
Income from financial products 2,754,190.61 1,432,328.96
253
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2021 to 30 June 2021
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Total 37,411,973.74 77,837,668.60
XVIII. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 16 August 2021.
254
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified, RMB for record in the Statement)
Supplementary information for financial statement
1. Non-recurring gains and losses for this period
Item Current Period Note
Gains and losses from disposal of non-current assets -736,583.34
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to national 54,702,099.76
standards, which are closely relevant to enterprise’s business)
Losses/gains from changes of fair values occurred in holding trading
financial assets and trading financial liabilities, and investment income
obtaining from the disposal of trading financial assets, trading
58,849,862.38
financial liability and financial assets available-for-sale, excluded
effective hedging business relevant with normal operations of the
Company
Reversal of the account receivable depreciation reserves subject to
1,228,611.25
separate impairment test
Other non-operating income and expenses other than the above 5,629,332.53
Subtotal 119,673,322.58
Less: impact on income tax 17,645,671.62
Impact on minority shareholders’ equity (post-tax) 1,317,724.41
Total 100,709,926.55 —
2. Return on equity and earnings per share
Weighted average return on Earnings per share/EPS (RMB/Share)
Profit during the report period
equity Basic EPS Diluted EPS
Net profit attributable to ordinary 0.76% 0.0356 0.0356
shareholders of the parent company
Net profit attributable to ordinary -1.31% -0.0608 -0.0608
shareholders of the parent company
after deduction of the non-recurring
gains/losses
Changhong Meiling Co., Ltd.
15 August 2020
255
