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虹美菱B:2021年第三季度报告(英文版)2021-10-20  

                                                            CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



Stock code: 000521, 200521                                                          Notice No.: 2021 -083
short form of the stock:Changhong Meiling, Hongmeiling B



                          CHANGHONG MEILING CO., LTD.
                   THE THIRD QUARTERLY REPORT FOR 2021


The Company and whole members of the BOD guarantee that the information disclosed is true,
accurate and complete, and there are no any fictitious records, misleading statements or important
omissions.



Important content reminder:
1. Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Changhong Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are
no any fictitious statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of
the whole contents.
2. Principal of the Company, Person in Charge of Accounting Works and Person in Charge of
Accounting Organ (Accounting Officer) hereby confirm that the Financial Report of the Third
Quarterly Report is authentic, accurate and complete.
3. Whether the Third Quarterly Report has been audited or not
□Yes    √No

I. Main financial data

(i) Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes    √No
                                                                                          Increase/decrease
                                            Increase/decrease in
                                                                                         from year-begin to
                                            the period compared     Year-begin to
                         Current period                                                 period-end compared
                                            with the same period     period-end
                                                                                        with the same period
                                             of the previous year
                                                                                         of the previous year
Operating income
                         4,312,251,172.73                  -5.45%   13,915,010,518.02                22.53%
(Yuan)




                                                                                                                1
                                         CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



Net profit attributable
to shareholders of the
                                 25,102,342.76              -71.01%           62,259,854.30                  150.39%
listed company
(Yuan)

Net profit attributable
to shareholders of the
listed company after
                                 -1,016,633.94             -106.23%           -64,569,048.95                 73.19%
deducting
non-recurring gains
and losses (Yuan)

Net cash flow arising
from operating                   ——                   ——                -184,729,360.39                  33.70%
activities (Yuan)

Basic earnings per
                                         0.0240             -71.05%                     0.0596               150.38%
share (Yuan /Share)

Diluted earnings per
                                         0.0240             -71.05%                     0.0596               150.38%
share (Yuan /Share)

Weighted average
                                                   A decrease of 1.29                            An increase of 3.79
                                         0.52%                                          1.28%
ROE                                                 percentage points                             percentage points

                                                                           Increase/decrease at the period-end
                          End of current period End of previous year
                                                                        compared with the end of the previous year

Total assets (Yuan)          15,691,792,207.14     16,103,355,454.46                                          -2.56%
Net assets attributable
to shareholder of
                              4,857,058,554.70      4,854,173,682.43                                          0.06%
listed company
(Yuan)

(ii) Items and amounts of non-recurring profit (gains)/losses

√ Applicable □ Not applicable
                                                                                                         Unit: Yuan
                                                                         Amount from
                                                  Amount for the          year-begin to               Note
                      Item
                                                     period
                                                                           period-end

Gains/losses from the disposal of                                                           See "Proceeds from
non-current asset (including the write-off              -17,846.58              -754,429.92 Asset Disposal" and
                                                                                            "Non-operating
that accrued for impairment of assets)                                                      Income/Expense" for



                                                                                                                       2
                                         CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



                                                                                             details.
Government subsidy recorded in current
gains/losses (except those closely related to
the Company’s normal operation, and those
                                                                                             See "Other Earnings"
                                                   23,226,869.48            77,928,969.24
continuously enjoyed on a fixed or                                                           for details.
quantitative basis with certain standards in
accordance with national policy regulations)

Losses/gains from changes of fair values
occurred in holding trading financial assets
and trading financial liabilities, and
                                                                                          See "Fair value
investment income obtaining from the
                                                                                          Change income" and
                                                    7,186,220.84            66,036,083.22
disposal of trading financial assets and                                                  "Investment Income"
                                                                                          for details.
trading financial liability, excluded effective
hedging business relevant with normal
operations of the Company

Reversal of the account receivable
                                                                                           See "Accounts
depreciation reserves subject to separate             159,777.85              1,388,389.10 Receivable" for
impairment test                                                                            details.

                                                                                           See "Non-operating
Other non-operating income and expenses
                                                                                           Income" and
                                                      999,112.79              6,628,445.32
other than the above                                                                       "Non-operating
                                                                                           Expenses" for details.
Less: impact on income tax                          4,341,036.56            21,986,708.18
     Impact on minority shareholders’
                                                    1,094,121.12              2,411,845.53
equity (post-tax)
Total                                              26,118,976.70           126,828,903.25               --
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:
□ Applicable √ Not applicable
The Company does not have other gain/loss items that qualified the definition of non-recurring profit
(gains)/losses
Explanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
□ Applicable √ Not applicable
The Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as
recurring gain/loss

(iii) Particulars about changes in items of main accounting data and financial index and
explanations of reasons

√ Applicable □Not applicable
1. Changes and reasons of items in balance sheet


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                                              CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



                                                                                                             Unit: Yuan
                                             Balance at last Changes
         Item              Ending balance                                               Reasons of changes
                                                 Year         ratio

Trading       financial                                                    Mainly due to the financial products purchased
                           395,666,180.17 47,242,339.07        737.52%
assets                                                                     by the Company in current period.

                                                                           Mainly due to the notes receivable due for
Notes receivable           159,935,906.44 340,421,386.71       -53.02%
                                                                           remittance in the current period.

                           2,031,949,829.7 1,130,275,780.6                 Mainly due to the growth of operation revenue
Account receivable                                             79.77%
                                         4               6                 in the current period

Account       paid    in                                                   Mainly due to the prepayment of purchases
                            64,863,143.78 30,105,373.40        115.45%
advance                                                                    increased in the current period.

Other current assets        74,584,938.18 198,353,464.98       -62.40% Mainly due to the VAT retained tax refund.

Long-term         equity                                                   Mainly due to the investment losses from joint
                            53,836,406.41 76,982,822.38        -30.07%
investment                                                                 ventures and associates in the current period.

Construction          in                                                   Mainly due to the engineering inputs increased
                            81,634,715.75 60,775,088.96        34.32%
progress                                                                   in the current period.

                                                                           Mainly due to the implementation of new
Right-of-use asset          33,033,246.07                  -           -
                                                                           leasing standards in the current period

                                             1,336,209,050.5               Mainly due to the repayment of short-term
Short-term loan            886,293,630.28                      -33.67%
                                                           5               borrowings.

                                                                       Mainly due to the changes in fair value of
Trading       financial
                              2,318,206.64     4,584,076.51    -49.43% forward foreign exchange contracts in the
liabilities
                                                                       current period.

Employee
                                                                           Mainly due to the payment of employee
compensation               173,386,003.30 290,321,776.05       -40.28%
                                                                           remuneration in the current period.
payable

                                                                           Mainly due to the implementation of new
Lease liability             22,352,167.76                  -           -
                                                                           leasing standards in the current period.

                                                                           Mainly due to the write-off of the accrual
Accrual liabilities         15,160,400.14 62,392,735.07        -75.70%
                                                                           liabilities in the current period.

Deferred income tax                                                        Mainly due to the reversal of deferred income
                              5,738,912.89 10,575,582.33       -45.73%
liability                                                                  tax liability in the current period.

                                                                           Mainly due to the repurchase of B-share in the
Treasury stock              17,324,792.23      9,929,336.18    74.48%
                                                                           current period.

                                                                      Mainly due to the earnings increased from some
Minority interests         147,051,252.93 107,921,283.49       36.26% non-wholly owned subsidiaries in the current
                                                                      period.

2. Changes and reasons of items in profit statement
                                                                                                             Unit: Yuan

                     Amount at the Amount at the sameChanges
Item                                                                          Reasons of changes
                     period           period of previous year ratio


                                                                                                                       4
                                      CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021




                                                                    Mainly the current period of the company
Financial
                     -35,552,769.58       -1,509,899.93 -2254.64% exchange earnings, exchange losses caused
expenses
                                                                    by the same period last year.

                                                                    Mainly due to the forward foreign exchange
Investment
                     80,853,371.21        47,154,706.68   71.46% contract delivery gains increased on a y-o-y
income
                                                                    basis in the current period.

Income        from                                                  Mainly due to the changes in fair value of
fair         value -28,310,289.03         17,956,801.15 -257.66% forward foreign exchange contracts in the
changes                                                             current period.

Credit                                                              Mainly due to the y-o-y decrease in
                     -21,358,115.43      -33,008,077.62   -35.29%
impairment loss                                                     impairment loss on receivable.

                                                                    The company's main current accounts
Asset
                     -46,558,863.61      -34,714,276.42   34.12% receivable impairment loss caused by the
impairment loss
                                                                    year-on-year reduction.

Income        from                                                  Mainly due to the y-o-y declined of losses
                       -249,004.26          -542,955.36   54.14%
assets disposal                                                     from assets disposal in the current period.

Non-operating                                                       Mainly is the current period of the
                      8,126,104.09         5,072,408.44   60.20%
income                                                              company's long-term liquidation caused by.

Non-operation                                                       The main department of this period of the
                      2,003,084.43         1,206,761.93   65.99%
expenditure                                                         company's assets scrapped loss caused by.

                                                                    Mainly due to the increase in income tax
Income         tax
                     29,394,642.88         1,746,437.69 1583.12% expenses due to the growth of taxable
expenses
                                                                    income.

Gains/losses of                                                     Mainly due to the earnings increased on a
minority             25,630,675.63        -2,151,849.18 1291.10% y-o-y basis from some non-wholly owned
shareholders                                                        subsidiaries in the current period.

3. Changes and reasons of items in cash flow statement
                                                                                                   Unit: Yuan




                                                                                                                  5
                                         CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021




                                                   Amount at the
                              Amount    at   the                  Changes
Item                                               same period of         Reasons of changes
                              period                              ratio
                                                   previous year



                                                                   Mainly due to the cash received from
Cash     received     from
                                                                   commodity selling and providing
selling commodities and 13,404,052,674.38 10,004,693,970.59 33.98%
                                                                   labor services increased on a y-o-y
providing labor services
                                                                   basis.



                                                                            The main department of the current
Write-back      of     tax                                                  period of the company received
                                 561,963,582.97       412,733,445.22 36.16%
received                                                                    value-added tax left against the tax
                                                                            refund caused by.



Cash paid for purchasing
                                                                               Mainly because the cash paid for raw
commodities             and 12,095,383,651.27        8,837,934,853.44 36.86%
                                                                               materials increased on a y-o-y basis.
receiving labor service



                                                                            Mainly because the financial products
Cash     received   from
                               1,420,000,000.00       737,460,000.00 92.55% are due for collection in the current
recovering investment
                                                                            period.



                                                                             Mainly because received a dividends
                                                                             from Hongyun Fund Investment in the
Cash    received      from
                                  23,968,192.46        42,570,007.43 -43.70% same period of last year, while there
investment income
                                                                             was no such item occurred in current
                                                                             period.



Net cash received from                                                       Mainly the disposal of fixed assets of
disposal     of   fixed,                                                     the company in the current period of
                                   1,290,668.56           381,041.58 238.72%
intangible   and   other                                                     cash received by the year-on-year
long-term assets                                                             increase.



                                                                             Mainly     because purchase and
Cash paid for purchasing                                                     construction of intangible assets from
fixed, intangible and other      187,456,291.30       296,007,313.74 -36.67% subsidiary                 Changhong
long-term assets                                                             Air-conditioning declined from a year
                                                                             earlier.



Other      cash      paid              58,411.60                   -         - Mainly due to the new foreign
concerning      investing                                                      exchange contract delivery losses




                                                                                                                  6
                                          CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



  activities                                                                      from subsidiary Zhongke Meiling.



                                                                                   Mainly due to the new absorbed
  Cash    received     from                                                        investment     from      minority
                                    15,000,000.00                       -        -
  absorbing investment                                                             shareholders by subsidiary Life
                                                                                   Electric.



  Other      cash     received                                                     Mainly due to the bill discounting
  concerning        financing        5,986,105.14                       -        - from       subsidiary  Changhong
  activities                                                                       Air-conditioning.



                                                                               Mainly due to the cash paid for
  Other      cash      paid
                                                                               B-share repurchase and payment of
  concerning      financing         15,403,414.62         2,432,566.62 533.22%
                                                                               the principal & interest on lease
  activities
                                                                               liabilities.



  IV. Influence on cash and
  cash equivalents due to                                                         Mainly due to the effect of changes in
                                    24,846,222.17       -18,563,610.41 233.84%
  fluctuation in exchange                                                         exchange rate.
  rate



  II. Shareholders Information

  (i) Total numbe r of common shareholders and preference shareholders with voting rights
  recovered and top ten common shareholders

                                                                                                             Unit: Share
                                                             Total preference
                                                             shareholders with voting
Total common shareholders at
                                                      67,605 rights recovered at end of                                        0
end of the Period
                                                             reporting period (if
                                                             applicable)
                                                    Top ten shareholders
                                                                                                     Information of shares

                                                               Proportion             Amount of       pledged, tagged or
                                             Nature of                    Amount of
           Shareholder’s name                                  of shares              restricted            frozen
                                            shareholder                   shares held
                                                                  held                shares held
                                                                                                     State of
                                                                                                                 Amount
                                                                                                      share
                                    State-owned
Sichuan Changhong Electric Co., Ltd.                            23.79%      248,457,724          0       -            --
                                    legal person
Hefei Industrial Investment Holding State-owned
                                                                4.58%        47,823,401          0       -            -
(Group) Co., Ltd.                   legal person
CHANGHONG            (HK)        TRADING Foreign       legal
                                                                2.59%        27,077,797          0       -            -
LIMITED                                  person



                                                                                                                           7
                                           CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



CAOSHENGCHUN                               Foreign natural
                                                               1.41%       14,766,086               0       -         -
                                           person
Ma Guobin                              Domestic
                                                               1.34%       14,010,900               0       -         -
                                       natural person
Caitong Fund- Ningbo Bank-Haitong Domestic
Xingtai (Anhui) Emerging Industry non-state-owne               1.03%       10,733,452               0       -         -
Investment Fund (Limited Partnership) d legal person
                                       Foreign legal
Phillip Securities (Hong Kong) Limited                         0.60%         6,296,913              0       -         -
                                       person
Societe Generale                           Foreign     legal
                                                               0.50%         5,186,843              0       -         -
                                           person
Wang Yumei                                 Domestic
                                                               0.45%         4,717,700              0       -         -
                                           natural person
Chen Qin                                   Domestic
                                                               0.39%         4,091,288              0       -         -
                                           natural person
                             Particular about top ten shareholders with un-restrict shares held
                                                                        Amount of                 Type of shares
                          Shareholders’ name                           unrestricted
                                                                        shares held          Type               Amount
                                                                                         RMB ordinary
Sichuan Changhong Electric Co., Ltd.                                     248,457,724                            248,457,724
                                                                                               shares
                                                                                         RMB ordinary
Hefei Industrial Investment Holding (Group) Co., Ltd.                     47,823,401                             47,823,401
                                                                                               shares
                                                                                           Domestically
CHANGHONG (HK) TRADING LIMITED                                            27,077,797       listed foreign        27,077,797
                                                                                                   shares
CAOSHENGCHUN                                                                               Domestically
                                                                          14,766,086       listed foreign        14,766,086
                                                                                                   shares
Ma Guobin                                                                                RMB ordinary
                                                                          14,010,900                             14,010,900
                                                                                               shares
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging                               RMB ordinary
                                                                          10,733,452                             10,733,452
Industry Investment Fund (Limited Partnership)                                                    shares
                                                                                          Domestically
Phillip Securities (Hong Kong) Limited                                     6,296,913      listed foreign           6,296,913
                                                                                                  shares
Societe Generale                                                                         RMB ordinary
                                                                           5,186,843                               5,186,843
                                                                                               shares
Wang Yumei                                                                               RMB ordinary
                                                                           4,717,700                               4,717,700
                                                                                               shares
Chen Qin                                                                                 RMB ordinary
                                                                           4,091,288                               4,091,288
                                                                                               shares
Explanation on            Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter
associated relationship   referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong
or consistent actors      Electric Co., Ltd.; except the shares of the Company directly held by Hong Kong Changhong,
among the aforesaid       6,296,913 shares of B-stock are also held through Phillip Securities (Hong Kong) Co., Ltd.,
shareholders              the foregoing shareholders constitute persons of uniform action. There existed no associated




                                                                                                                          8
                                          CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



                         relationship or belong to the concerted actors as specified in the Measures for the
                         Administration of Information Disclosure of Shareholder Equity Changes of Listed
                         Companies among Sichuan Changhong, Hong Kong Changhong and other top 7 shareholders
                         (Excluding Phillip Securities (Hong Kong) Co., Ltd.); “Caitong Fund- Ningbo
                         Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (Limited Partnership)”
                         refers to the products of Caitong Fund Management Company subscribe for privately
                         placement of 2016; The company neither knows whether there is any association among other
                         shareholders, nor knows whether other shareholders belong to the persons acting in concert
                         that is stipulated in the “Administrative Measures on Information Disclosure of Changes in
                         Shareholding of Listed Companies”.
Explanation on top ten   As of 30th September 2021, among the top 10 common shareholders, Ma Guobin holds
common shareholders      10,976,700 shares of the Company through customer credit trading secured account of
involving margin         Founder Securities Co., Ltd., and 3,034,200 shares hold through common securities account,
business (if applicable) thus 14,010,900 shares of the Company are held in total.


  (ii) Total shareholders with preferred stock held and shares held by top ten shareholders with
  preferred stock held

  □ Applicable √ Not applicable

  III. Other significant events

  √ Applicable     □Not applicable
                                                                                                Information index for temporary
                               Overview                                   Date for disclosure
                                                                                                        report disclosure
  After review and approval by the resolution of the BOD, BOS and
  General meeting of shareholders, it was agreed that the company                               Juchao Website:
  would use the idle raised funds with 120 million yuan at most (the        March 3, 2021       http://www.cninfo.com.cn
  quota can be used on a rolling basis) to invest in the high-security,     April 29, 2021      (No. 2021-008, No. 2021-009,
  good-liquidity and capital-guaranteed financial products with                                 No. 2021-010 and No. 2021-034)
  maturity within one year.
  After review and approval by the resolution of the BOD, it was
  agreed that the subordinate controlling subsidiary Zhongke                                    Juchao Website:
  Meiling Cryogenic Technology Co., Ltd. to newly established a             March 3, 2021       http://www.cninfo.com.cn
  wholly-owned subsidiary- Anhui Ling’an Medical Devices Co.,                                  (No. 2021-008)
  Ltd. with 10 million yuan.
  After review and approval by the resolution of the BOD, BOS and                               Juchao Website:
                                                                            March 3, 2021
  General meeting of shareholders, it was agreed that the Company                               http://www.cninfo.com.cn
                                                                            April 29, 2021
  provide a credit guarantee line (not exceeding 350 million yuan)                              (No. 2021-008, No. 2021-009,




                                                                                                                       9
                                        CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



with a period of one year to its subordinate controlling subsidiary                    No. 2021-011 and No. 2021-034)
Hefei Changhong Meiling Life Electric Co., Ltd..
After review and approval by the resolution of the BOD, it was
agreed to performing technical renovations on the production line
                                                                                       Juchao Website:
of Hefei Base Refrigerator (cabinet) with 24.4276 million yuan,
                                                                      March 3, 2021    http://www.cninfo.com.cn
achieving the cost reduction and efficiency gains to reduce
                                                                                       (No. 2021-008)
manufacturing costs and further enhance the market
competitiveness of the company’s products.
After review and approval by the resolution of the BOD and
General meeting of shareholders, it was agreed that the Company
and its subordinate subsidiaries carry out the forward foreign                         Juchao Website:
exchange funds trading business between 1 July 2021 and 30 June       March 3, 2021    http://www.cninfo.com.cn
2022. The balance of trading shall not exceed US$ 720 million         April 29, 2021   (No. 2021-013, No. 2021-019 and
(mainly including: USD, AUD and EUR, all other foreign                                 No. 2021-034)
currencies are converted to USD), the maximum settlement period
of a single transaction shall not exceed one year.
After review and approval by the resolution of the BOD and                             Juchao Website:
General meeting of shareholders, it was agreed that the Company       March 31, 2021   http://www.cninfo.com.cn
to formulated the “Shareholder Return Plan for the Next Three        April 29, 2021   (No. 2021-013, and No.
Years (2021-2023)”.                                                                   2021-034)
After review and approval by the resolution of the BOD and
                                                                                       Juchao Website:
General meeting of shareholders, it was agreed that the
                                                                      March 31, 2021   http://www.cninfo.com.cn
subordinate subsidiary of the company- Zhongshan Changhong to
                                                                      April 29, 2021   (No. 2021-013, No. 2021-020 and
write-off a bad debt of 1,657,332.46 yuan in total, which was
                                                                                       No. 2021-034)
really beyond collection.
After review and approval by the resolution of the BOD, agreed to                      Juchao Website:
appoint Mr. Tang Youdao as the Vice President of the Company,         March 31, 2021   http://www.cninfo.com.cn
his office term will same as the term as the current BOD.                              (No. 2021-013)
After review and approval by the resolution of the BOD, BOS and
General meeting of shareholders, it was agreed that controlling                        Juchao Website:
subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. to        March 31, 2021   http://www.cninfo.com.cn
provide 60 million yuan credit guarantee line to its wholly-own       April 29, 2021   (No. 2021-013, No. 2021-014,
subsidiary- Anhui Tuoxing Technology Co., Ltd with guarantee                           No. 2021-021 and No. 2021-034)
period of one year.
After review and approval by the resolution of the BOD and                             Juchao Website:
General meeting of shareholders, it was agreed that the company       March 31, 2021   http://www.cninfo.com.cn
and its subsidiaries to applying for a special credit line for the    April 29, 2021   (No. 2021-013, No. 2021-022 and
note pool from the follow institutions as: up to 300 million yuan                      No. 2021-034)



                                                                                                          10
                                        CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



from Hefei Branch of Industrial Bank Co., ltd, up to 300 million
yuan from Hefei Branch of Ping An Bank Co., ltd, up to 300
million yuan from Hefei Economic Development Zone Branch of
Huishang Bank Co., Ltd., up to 300 million yuan from Hefei
Branch of China Merchants Bank and up to 50 million yuan from
Hefei Branch of CITIC Bank.
After review and approval by the resolution of the BOD and
General meeting of shareholders, agreed to re-appoints Shine
Wing Certified Public Accountants (LLP) as the audit institution                         Juchao Website:
of the annual financial report 2021 and internal control of the         March 31, 2021   http://www.cninfo.com.cn
Company with one year period. At the same time, to request the          April 29, 2021   (No. 2021-013, No. 2021-017 and
shareholders’ general meeting to authorize management of the                            No. 2021-034)
Company to determine its annual audit remuneration, according to
the industry standards and actual audit works of the company.
Former securities affairs representative and staff supervisor Mr.
Zhu Wenjie, apply to resign as the staff supervisor of 10th BOS
and securities affairs representative due to personal reasons. To
ensure that the structure of the BOS conforms to the relevant legal                      Juchao Website:
requirements, the staff congress held on 30 March 2021, after           March 31, 2021   http://www.cninfo.com.cn
voting by the staff representative, agreed to elected Ms. Sun                            (No. 2021-023)
Hongying as the staff supervisor of the 10th BOS, term of office
shall commence from the date of deliberation and approved by
Staff Congress to the date of expiration of the 10th BOS.
After review and approval by the resolution of the BOD and BOS,
                                                                                         Juchao Website:
it was agreed that the Company should implement the new leasing
                                                                                         http://www.cninfo.com.cn
standards and change the related accounting policy according to         April 20, 2021
                                                                                         (No. 2021-028, No. 2021-029 and
the relevant regulations and requirements of the Ministry of
                                                                                         No. 2021-030)
Finance.
After review and approval by the resolution of the BOD, BOS and
General meeting of shareholders, agreed that the company
terminates the use of the raised funds to purchase underlying                            Juchao Website:
assets of the sub-project "intelligent research and development         April 20, 2021   http://www.cninfo.com.cn
management platform construction" of the "intelligent research          June 17, 2021    (No. 2021-028, No. 2021-029,
and development ability building and intelligent home appliance                          No. 2021-031 and No. 2021-046)
technology development project" from Sichuan Changhong
Electric Co., Ltd. and its subsidiaries and the related transactions.
After review and approval by the resolution of the BOD, agreed                           Juchao Website:
                                                                        May 27, 2021
that the company's wholly-owned subsidiary Hefei Meiling                                 http://www.cninfo.com.cn



                                                                                                            11
                                         CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



Wulian Technology Co., Ltd to invests 37.69 million yuan in                              (No. 2021-038)
building industrial internet service capacity to further expand
informatization and digital business and service capacity, and
build a comprehensive capability of new business type integrating
"manufacturing + service" businesses.
After review and approval by the resolution of the BOD, agreed
that the company and its subsidiaries apply to Bank of Jiujiang ,
                                                                                         Juchao Website:
Hefei Branch for a special credit line of up to 400 million yuan of
                                                                        May 27, 2021     http://www.cninfo.com.cn
bill pool, the credit period is one year, the types of credit are
                                                                                         (No. 2021-038 and No. 2021-039)
mainly used for the special business of bill pool, and endorsement
for pledge is adopted.
After deliberated by the BOD and BOS and review and approval                             Juchao Website:
by the General meeting of shareholders, agreed to purchase the          July 13, 2021    http://www.cninfo.com.cn
liability insurance for the Company and all directors, supervisors      July 29, 2021    (No. 2021-050, No. 2021-051,
and senior executives.                                                                   No. 2021-052 and No. 2021-058)
After review and approval by the resolution of the BOD, BOS and
General meeting of shareholders, agreed the Company to increase
                                                                                         Juchao Website:
the predicted amount of routine related transactions to 30 million
                                                                        July 13, 2021    http://www.cninfo.com.cn
yuan (tax excluded) at most, including the business as financial
                                                                        July 29, 2021    (No. 2021-050, No. 2021-051,
leasing, commercial factoring and bill financing provided by
                                                                                         No. 2021-053 and No. 2021-058)
Yuanxin Financial Leasing Co., Ltd to the Company and its
wholly-owned subsidiaries for year of 2021.
The subordinate controlling subsidiary- Zhongke Meiling
Cryogenic Technology Co., Ltd received a “Administrative                                Juchao Website:
Penalty Decision of Anhui Province Medical Products                     July 16, 2021    http://www.cninfo.com.cn
Administration” in mid-July from Anhui Province Medical                                 (No. 2021-056)
Products Administration
After review and approval by the BOD, agreed the Company to
invest 15.0529 million yuan on reconstruction of the substation in                       Juchao Website:
refrigerator park of Hefei manufacturing base, thus providing a        August 18, 2021   http://www.cninfo.com.cn
strong guarantee for the sustainable development of the operation                        (No. 2021-060)
and production of the Company.
After review and approval by the BOD, agreed that the Company
                                                                                         Juchao Website:
will hand over the idle land use rights and houses (lands located in
                                                                       August 18, 2021   http://www.cninfo.com.cn
Area A, Longgang Industrial Zone, Yaohai District, Hefei City) to
                                                                                         (No. 2021-060 and No. 2021-064)
government for expropriation.
After review and approval by the BOD, agreed that the Company                            Juchao Website:
                                                                       August 18, 2021
should invest approximately 30.9131 million yuan for the                                 http://www.cninfo.com.cn



                                                                                                            12
                                       CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



relocation and expansion of the extrusion line in Hefei refrigerator                      (No. 2021-060)
manufacturing base to ensure the improvement of manufacturing
capacity and production & operation needs.
The “Special Report on Deposit and Use of Funds Raised in the
First Half of 2021” was released by the Company on August 18,
2021. And as of September 30, 2021, the projects with fund raised
                                                                                          Juchao Website:
privately in 2016 actually have 1,131,713,720.82 yuan used             August 18, 2021
                                                                                          http://www.cninfo.com.cn
cumulatively, the balance of the special account for proceeds          October 20, 2021
                                                                                          (No. 2021-063 and No. 2021-083)
deposit was 101,997,251.16 yuan (including interest income
4,388,287.76 yuan and maturity income of 40,554,235.69 yuan
from bank wealth management products)


IV. Quarterly financial statements

(i) Financial statement

1. Consolidate balance sheet

Prepared by Changhong Meiling Co., Ltd.
                                                                                                     Unit: Yuan
                  Item                        September 30, 2021                   December 31, 2020
Current assets:
     Monetary fund                                        5,616,304,292.60                    6,594,786,789.98
     Settlement provisions
     Capital lent
     Trading financial assets                               395,666,180.17                       47,242,339.07
     Derivative financial assets
     Note receivable                                        159,935,906.44                      340,421,386.71
     Account receivable                                   2,031,949,829.74                    1,130,275,780.66
     Receivable financing                                 1,394,866,085.58                    1,632,388,702.83
     Accounts paid in advance                                64,863,143.78                       30,105,373.40
     Insurance receivable
     Reinsurance receivables
     Contract reserve of
reinsurance receivable
     Other account receivable                               116,036,131.33                      145,705,978.26
       Including: Interest
receivable
                    Dividend
receivable
     Buying back the sale of
financial assets
     Inventories                                          1,602,309,728.39                    1,715,354,951.43


                                                                                                             13
                                      CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



     Contractual assets
     Assets held for sale
     Non-current asset due within
one year
     Other current assets                              74,584,938.18                   198,353,464.98
Total current assets                               11,456,516,236.21                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                       53,836,406.41                    76,982,822.38
      Investment in other equity
instrument
      Other non-current financial
                                                      548,148,931.34                   548,148,931.34
assets
     Investment real estate                            53,629,308.83                    53,888,462.00
     Fixed assets                                   2,319,118,984.83                 2,391,859,440.31
     Construction in progress                          81,634,715.75                    60,775,088.96
     Productive biological asset
     Oil and gas asset
     Right-of-use assets                               33,033,246.07
     Intangible assets                                947,790,673.24                   936,851,520.65
    Expense on Research and
                                                       81,001,073.76                    73,028,441.56
Development
     Goodwill
    Long-term expenses to be
apportioned
    Deferred income tax asset                         117,082,630.70                   127,185,979.94
     Other non-current asset
Total non-current asset                             4,235,275,970.93                 4,268,720,687.14
Total assets                                       15,691,792,207.14                16,103,355,454.46
Current liabilities:
     Short-term loans                                 886,293,630.28                 1,336,209,050.55
     Loan from central bank
     Capital borrowed
     Trading financial liability                        2,318,206.64                     4,584,076.51
     Derivative financial liability
     Note payable                                   5,194,596,289.96                 4,439,607,982.34
     Account payable                                2,211,903,239.05                 2,851,999,684.30
    Accounts received in
advance


                                                                                                   14
                                      CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



     Contractual liability                            508,999,162.32                   522,550,891.28
     Selling financial asset of
repurchase
     Absorbing deposit and
interbank deposit
     Security trading of agency
     Security sales of agency
     Wage payable                                     173,386,003.30                   290,321,776.05
     Taxes payable                                    115,040,809.29                    89,682,433.90
     Other account payable                            848,932,270.79                   724,701,686.72
        Including: Interest payable
                     Dividend
                                                        4,753,764.56                     4,466,628.25
payable
   Commission charge and
commission payable
     Reinsurance payable
     Liability held for sale
     Non-current liabilities due
                                                      323,227,524.41                   407,825,150.74
within one year
     Other current liabilities                         25,692,352.24                    22,923,698.73
Total current liabilities                          10,290,389,488.28                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                                   22,352,167.76
     Long-term account payable                          1,385,732.43                     1,705,323.91
     Long-term wages payable                            8,596,106.90                    10,571,526.69
     Accrual liability                                 15,160,400.14                    62,392,735.07
     Deferred income                                  166,059,591.11                   177,377,450.12
      Deferred income tax
                                                        5,738,912.89                    10,575,582.33
liabilities
     Other non-current liabilities
Total non-current liabilities                         397,292,911.23                   450,854,057.42
Total liabilities                                  10,687,682,399.51                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


                                                                                                   15
                                      CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



     Capital public reserve                             2,683,833,100.04              2,683,837,229.12
     Less: Inventory shares                               17,324,792.23                      9,929,336.18
     Other comprehensive income                           -21,650,060.47                -21,451,084.17
     Reasonable reserve
     Surplus public reserve                              416,364,790.43                416,364,790.43
     Provision of general risk
     Retained profit                                     751,237,635.93                740,754,202.23
Total owner’ s equity attributable
                                                        4,857,058,554.70              4,854,173,682.43
to parent company
     Minority interests                                  147,051,252.93                107,921,283.49
Total owner’ s equity                                  5,004,109,807.63              4,962,094,965.92
Total liabilities and owner’ s
                                                      15,691,792,207.14             16,103,355,454.46
equity

Legal Representative: Wu Dinggang

Person in charge of accounting works: Pang Haitao

Person in charge of accounting institute: Yang Jun

2. Consolidated Profit Statement (from the year-begin to the period-end)

                                                                                                Unit: Yuan
                Item                            Current period                 Last period
I. Total operating income                              13,915,010,518.02             11,356,742,966.11
     Including: Operating income                       13,915,010,518.02             11,356,742,966.11
             Interest income
             Insurance gained
          Commission charge
and commission income
II. Total operating cost                               13,872,478,761.87            11,554,834,849.35
     Including: Operating cost                         12,225,814,695.57              9,469,161,384.07
             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                                96,101,240.28                 99,798,451.84



                                                                                                        16
                                          CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



             Sales expense                               1,064,459,268.59                1,519,429,320.36
             Administrative
                                                          221,253,602.91                   203,336,291.49
expense
             R&D expense                                  300,402,724.10                   264,619,301.52
             Financial expense                             -35,552,769.58                   -1,509,899.93
                Including: Interest
                                                           50,740,185.10                    68,673,511.11
expenses
                             Interest
                                                          100,950,646.76                   105,402,339.93
income
     Add: other income                                     84,253,298.12                    73,419,100.44
           Investment income (Loss
                                                           80,853,371.21                    47,154,706.68
is listed with “-”)
           Including: Investment
income on affiliated company and                           -21,089,185.99                     752,761.07
joint venture
                  The termination of
income recognition for financial
assets measured by amortized cost
(Loss is listed with “-”)
           Exchange income (Loss
is listed with “-”)
         Net exposure hedging
income (Loss is listed with “-”)
           Income from change of
                                                           -28,310,289.03                   17,956,801.15
fair value (Loss is listed with “-”)
           Loss of credit impairment
                                                           -21,358,115.43                  -33,008,077.62
(Loss is listed with “-”)
          Losses of devaluation of
                                                           -46,558,863.61                  -34,714,276.42
asset (Loss is listed with “-”)
          Income from assets
                                                             -249,004.26                      -542,955.36
disposal (Loss is listed with “-”)
III. Operating profit (Loss is listed
                                                          111,162,153.15                  -127,826,584.37
with “-”)
     Add: Non-operating income                              8,126,104.09                     5,072,408.44
     Less: Non-operating expense                            2,003,084.43                     1,206,761.93
IV. Total profit (Loss is listed with
                                                          117,285,172.81                  -123,960,937.86
“-”)
       Less: Income tax expense                            29,394,642.88                     1,746,437.69
V. Net profit (Net loss is listed with
                                                           87,890,529.93                  -125,707,375.55
“-”)
  (i) Classify by business
continuity
       1.continuous operating net
                                                           87,890,529.93                  -125,707,375.55
profit (net loss listed with ‘-”)
       2.termination of net profit (net
loss listed with ‘-”)
   (ii) Classify by ownership



                                                                                                       17
                                        CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



    1.Net profit attributable to
                                                         62,259,854.30                  -123,555,526.37
owner’s of parent company
     2.Minority shareholders’ gains
                                                         25,630,675.63                    -2,151,849.18
and losses
VI. Net after-tax of other
                                                           -100,790.49                    -3,423,690.97
comprehensive income
   Net after-tax of other
comprehensive income attributable                          -198,976.30                    -2,891,434.28
to owners of parent company
     (i) Other comprehensive
income items which will not be
reclassified subsequently to profit
of loss
              1.Changes of the
defined benefit plans that
re-measured
             2.Other comprehensive
income under equity method that
cannot be transfer to gain/loss
            3.Change of fair value
of investment in other equity
instrument
              4.Fair value change of
enterprise's credit risk
             5. Other
       (ii) Other comprehensive
income items which will be
                                                           -198,976.30                    -2,891,434.28
reclassified subsequently to profit
or loss
             1.Other comprehensive
income under equity method that                            -204,914.10
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
                                                              5,937.80                    -2,891,434.28
foreign currency financial
statements
             7.Other
   Net after-tax of other
comprehensive income attributable                            98,185.81                      -532,256.69
to minority shareholders
VII. Total comprehensive income                          87,789,739.44                  -129,131,066.52


                                                                                                     18
                                       CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



      Total comprehensive income
attributable to owners of parent                           62,060,878.00                        -126,446,960.65
Company
      Total comprehensive income
attributable to minority                                   25,728,861.44                          -2,684,105.87
shareholders
VIII. Earnings per share:
     (i) Basic earnings per share                                  0.0596                                -0.1183
     (ii) Diluted earnings per share                               0.0596                                -0.1183
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuan
before combination, and realized 0.00 Yuan at last period for combined party

Legal Representative: Wu Dinggang

Person in charge of accounting works: Pang Haitao

Person in charge of accounting institute: Yang Jun

3. Consolidated Cash Flow Statement (from the year-begin to the period-end)

                                                                                                       Unit: Yuan
               Item                            Current period                          Last period
I. Cash flows arising from
operating activities:
     Cash received from selling
commodities and providing labor                        13,404,052,674.38                      10,004,693,970.59
services
    Net increase of customer
deposit and interbank deposit
      Net increase of loan from
central bank
      Net increase of capital
borrowed from other financial
institution
     Cash received from original
insurance contract fee
     Net cash received from
reinsurance business
     Net increase of insured
savings and investment
      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


                                                                                                               19
                                     CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



     Write-back of tax received                      561,963,582.97                   412,733,445.22
    Other cash received
                                                     117,355,922.31                   106,402,002.16
concerning operating activities
Subtotal of cash inflow arising
                                                  14,083,372,179.66                10,523,829,417.97
from operating activities
     Cash paid for purchasing
commodities and receiving labor                   12,095,383,651.27                 8,837,934,853.44
service
     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
   Cash paid for interest,
commission charge and
commission
     Cash paid for bonus of
guarantee slip
     Cash paid to/for staff and
                                                   1,248,072,379.51                 1,057,706,226.87
workers
     Taxes paid                                      297,701,677.67                   237,937,839.39
     Other cash paid concerning
                                                     626,943,831.60                   668,861,446.33
operating activities
Subtotal of cash outflow arising
                                                  14,268,101,540.05                10,802,440,366.03
from operating activities
Net cash flows arising from
                                                    -184,729,360.39                  -278,610,948.06
operating activities
II. Cash flows arising from
investing activities:
     Cash received from
                                                   1,420,000,000.00                   737,460,000.00
recovering investment
     Cash received from
                                                      23,968,192.46                    42,570,007.43
investment income
     Net cash received from
disposal of fixed, intangible and                      1,290,668.56                      381,041.58
other long-term assets
      Net cash received from
disposal of subsidiaries and other
units
    Other cash received
                                                     157,222,294.61                   122,087,124.32
concerning investing activities
Subtotal of cash inflow from
                                                   1,602,481,155.63                   902,498,173.33
investing activities
     Cash paid for purchasing
fixed, intangible and other                          187,456,291.30                   296,007,313.74
long-term assets



                                                                                                  20
                                    CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



     Cash paid for investment                     1,799,000,000.00                 1,435,280,051.17
     Net increase of mortgaged
loans
     Net cash received from
subsidiaries and other units
obtained
     Other cash paid concerning
                                                         58,411.60
investing activities
Subtotal of cash outflow from
                                                  1,986,514,702.90                 1,731,287,364.91
investing activities
Net cash flows arising from
                                                   -384,033,547.27                  -828,789,191.58
investing activities
III. Cash flows arising from
financing activities
      Cash received from
                                                     15,000,000.00
absorbing investment
      Including: Cash received
from absorbing minority
                                                     15,000,000.00
shareholders’ investment by
subsidiaries
     Cash received from loans                     1,293,560,455.26                 1,703,478,583.33
    Other cash received
                                                      5,986,105.14
concerning financing activities
Subtotal of cash inflow from
                                                  1,314,546,560.40                 1,703,478,583.33
financing activities
     Cash paid for settling debts                 1,674,330,870.00                 1,374,663,591.82
     Cash paid for dividend and
profit distributing or interest                      89,877,378.92                   107,526,031.28
paying
     Including: Dividend and
profit of minority shareholder                        1,598,892.00                     4,796,676.00
paid by subsidiaries
     Other cash paid concerning
                                                     15,403,414.62                     2,432,566.62
financing activities
Subtotal of cash outflow from
                                                  1,779,611,663.54                 1,484,622,189.72
financing activities
Net cash flows arising from
                                                   -465,065,103.14                   218,856,393.61
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in                    24,846,222.17                   -18,563,610.41
exchange rate
V. Net increase of cash and cash
                                                  -1,008,981,788.63                 -907,107,356.44
equivalents
     Add: Balance of cash and
cash equivalents at the                           6,425,529,815.10                 5,385,807,475.51
period-begin
VI. Balance of cash and cash
                                                  5,416,548,026.47                 4,478,700,119.07
equivalents at the period-end




                                                                                                 21
                                  CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



(ii) Explanation on financial statement adjustment

1. Financial statement adjustment at the beginning of the first year when imple mentation of
new leasing standards from 2021

√Applicable □Not applicable
Whether to adjust the balance sheet account at the beginning of the year
√Yes □No
Explain why it is not necessary to adjust the balance sheet accounts at the beginning of the year
Consolidate balance sheet
                                                                                            Unit: Yuan
           Item             December 31, 2020          January 1, 2021         Adjustment amount
Current assets:
     Monetary fund               6,594,786,789.98          6,594,786,789.98
     Settlement
provisions
     Capital lent
     Trading financial                                        47,242,339.07
                                    47,242,339.07
assets
     Derivative financial
assets
     Note receivable               340,421,386.71            340,421,386.71
     Account receivable          1,130,275,780.66          1,130,275,780.66
     Receivable                                            1,632,388,702.83
                                 1,632,388,702.83
financing
     Accounts paid in                                         30,070,303.06                -35,070.34
                                    30,105,373.40
advance
     Insurance
receivable
     Reinsurance
receivables
     Contract reserve of
reinsurance receivable
     Other account                                           145,705,978.26
                                   145,705,978.26
receivable
        Including:
Interest receivable
       Dividend
receivable
     Buying back the
sale of financial assets
     Inventories                 1,715,354,951.43          1,715,354,951.43
     Contractual assets
     Assets held for sale
    Non-current asset
due within one year



                                                                                                    22
                                 CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



        Other current assets     198,353,464.98          198,353,464.98
Total current assets           11,834,634,767.32       11,834,599,696.98              -35,070.34
Non-current assets:
     Loans and payments
on behalf
        Debt investment
     Other debt
investment
     Long-term account
receivable
     Long-term equity                                     76,982,822.38
                                  76,982,822.38
investment
     Investment in other
equity instrument
     Other non-current                                   548,148,931.34
                                 548,148,931.34
financial assets
     Investment real                                      53,888,462.00
                                  53,888,462.00
estate
     Fixed assets               2,391,859,440.31        2,391,859,440.31
     Construction in                                       60,775,088.96
                                  60,775,088.96
progress
     Productive
biological asset
        Oil and gas asset
        Right-of-use assets                                 9,818,834.44            9,818,834.44
        Intangible assets        936,851,520.65          936,851,520.65
    Expense on                                            73,028,441.56
Research and                      73,028,441.56
Development
    Goodwill
     Long-term expenses
to be apportioned
        Deferred income tax                              127,185,979.94
                                 127,185,979.94
asset
      Other non-current
asset
Total non-current asset         4,268,720,687.14        4,278,539,521.58            9,818,834.44
Total assets                   16,103,355,454.46       16,113,139,218.56            9,783,764.10
Current liabilities:
        Short-term loans        1,336,209,050.55        1,336,209,050.55
        Loan from central
bank
      Capital borrowed
      Trading financial                                     4,584,076.51
                                    4,584,076.51
liability
        Derivative financial



                                                                                              23
                               CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



liability
       Note payable           4,439,607,982.34        4,439,607,982.34
       Account payable        2,851,999,684.30        2,851,999,684.30
     Accounts received
in advance
        Contractual                                    522,550,891.28
                               522,550,891.28
liability
     Selling financial
asset of repurchase
     Absorbing deposit
and interbank deposit
    Security trading of
agency
    Security sales of
agency
       Wage payable            290,321,776.05          290,321,776.05
       Taxes payable            89,682,433.90           89,682,433.90
     Other account                                     724,701,686.72
                               724,701,686.72
payable
        Including:
Interest payable
         Dividend payable         4,466,628.25            4,466,628.25
     Commission charge
and commission payable
     Reinsurance
payable
       Liability held for
sale
      Non-current
liabilities due within one     407,825,150.74          412,825,431.41             5,000,280.67
year
      Other current                                     22,923,698.73
                                22,923,698.73
liabilities
Total current liabilities    10,690,406,431.12       10,695,406,711.79            5,000,280.67
Non-current liabilities:
     Insurance contract
reserve
       Long-term loans         188,231,439.30          188,231,439.30
       Bonds payable
        Including:
Preferred stock
        Perpetual capital
securities
     Lease liability                                      4,783,483.43            4,783,483.43
    Long-term account                                     1,705,323.91
                                  1,705,323.91
payable
       Long-term wages          10,571,526.69           10,571,526.69


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                                  CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



payable
       Accrual liability            62,392,735.07             62,392,735.07
       Deferred income             177,377,450.12            177,377,450.12
      Deferred income tax                                     10,575,582.33
                                    10,575,582.33
liabilities
      Other non-current
liabilities
Total non-current                                            455,637,540.85              4,783,483.43
                                   450,854,057.42
liabilities
Total liabilities               11,141,260,488.54         11,151,044,252.64              9,783,764.10
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                                        2,683,837,229.12
                                 2,683,837,229.12
reserve
     Less: Inventory                                           9,929,336.18
                                     9,929,336.18
shares
    Other                                                    -21,451,084.17
                                   -21,451,084.17
comprehensive income
    Reasonable reserve
     Surplus public                                          416,364,790.43
                                   416,364,790.43
reserve
       Provision of general
risk
       Retained profit             740,754,202.23            740,754,202.23
Total owner’ s equity                                     4,854,173,682.43
attributable to parent           4,854,173,682.43
company
     Minority interests            107,921,283.49            107,921,283.49
Total owner’ s equity           4,962,094,965.92          4,962,094,965.92
Total liabilities and                                     16,113,139,218.56              9,783,764.10
                                16,103,355,454.46
owner’ s equity
Statement of adjustment:
      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 make necessary adjustments according to the sum of the lease
liability and the prepayment.



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                                  CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2021



2. Retrospective adjustment of the comparative data for initial imple mentation of new leasing
standards from 2021

□ Applicable √Not applicable

(iii) Audit report

Whether the 3 rd quarterly report has been audited or not
□Yes √ No
The 3 rd quarterly report of the Company has not been audited.
                                                                 Board of Directors of

                                                                 Changhong Meiling Co., Ltd.

                                                                 October 20, 2021




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