CHANGHONG MEILING CO., LTD.
Semi-Annual Report 2022
August 2022
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section I. Important Notice, Contents and Interpretation
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.
Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr. Yang
Jun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2022
Semi- Annual Report is authentic, accurate and complete.
The Company did not have directors, supervisors and senior executives of the Company could not guarantee the
reality, accuracy and completion of the whole contents or have objections.
All the directors attended the board meeting to deliberating the Report by a combination of on-site and
communication.
Modified audit opinions notes
□ Applicable √ Not applicable
Risk warning of concerning the forward-looking statements with future planning involved in semi-annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
substantial commitment for investors, investors and the person concerned should maintain adequate risk awareness,
furthermore, differences between the plans, forecast and commitments should be comprehended. Investors are
advised to exercise caution of investment risks.
Investors are advised to read the full text of semi-annual report, and pay particular attention to the following risk
factors:
More details about the possible risks and countermeasures in the operation of the Company are described in the
report “X. Risks and countermeasures” of “Section III Management Discussion and Analysis”, investors are
advised to read the relevant content.
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) are the media for information disclosure for year of 2022 that appointed by the Company.
All public information under the name of the Company disclosed on the above said media and website shall
prevail, and investors are advised to exercise caution.
Does the Company need to comply with disclosure requirements of the special industry: No
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the semi-
1
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
annual period
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.
Directors, supervisor and senior executives of the Company respectively signed Written Confirmation Opinions
for 2022 Semi-Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2022 Semi-Annual Report.
2
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Contents
Section I. Important Notice, Contents and Interpretation ................................................................................... 1
Section II Company Profile and Main Financial Indexes .................................................................................... 6
Section III Management Discussion and Analysis .............................................................................................. 10
Section IV Corporate Governance ....................................................................................................................... 34
Section V Environmental and Social Responsibility ........................................................................................... 36
Section VI Important Events ................................................................................................................................ 40
Section VII Changes in Shares and Particular about Shareholders.................................................................. 87
Section VIII Preferred Stock ................................................................................................................................ 95
Section IX Corporate Bonds ................................................................................................................................. 96
Section X Financial Report ................................................................................................................................... 97
3
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Documents available for Reference
I. Text of the Semi-Annual Report carrying the signature of the Chairman;
II. Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and
person in charge of accounting organ;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company would provide them timely
when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to the
regulations and Articles of Association.
4
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Interpretation
Items Refers to Contents
Company, The Company, Changhong
Refers to CHANGHONG MEILING CO.,LTD.
Meiling or Meiling Electric
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., Ltd.
shareholder
Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Ridian Technology Refers to Changhong Meiling Ridian Technology Co., Ltd.
Wulian Technology Refers to Hefei Meiling Wulian Technology Co., Ltd
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., Ltd.
Meiling Life Appliances Refers to Hefei Changhong Meiling Life Appliances Co., Ltd.
Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province Securities
Anhui Securities Bureau Refers to
Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
5
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section II Company Profile and Main Financial Indexes
I. Company profile
Short form of the stock Changhong Meiling, Hongmeiling B Stock code 000521, 200521
Short form of the Stock after changed (if applicable) N/A
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 长虹美菱股份有限公司
Short form of the Company (in Chinese)(if
长虹美菱
applicable)
Foreign name of the Company (if applicable) CHANGHONG MEILING CO.,LTD.
Abbr. of English name of the Company (if
CHML
applicable)
Legal representative Wu Dinggang
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Pan Haiyun
No. 2163, Lianhua Road, Economic and No. 2163, Lianhua Road, Economic and
Contact add.
Technology Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
e-mail lixia@meiling.com haiyun.pan@meiling.com
III. Others
(I) Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in Annual Report 2021.
(II) Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC
and preparation place for semi-annual report have no change in reporting period, found more details in Annual
6
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Report 2021.
(III) Other relevant information
Whether other relevant information has changed in reporting period or not
□Applicable √Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Changes in the current reporting
Current period Same period last year period compared with the same
period of the previous year (+,-)
Operating income (RMB) 10,224,503,551.19 9,602,759,345.29 6.47%
Net profit attributable to shareholders of the
60,375,199.25 37,157,511.54 62.48%
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non-recurring 4,107,468.91 -63,552,415.01 106.46%
gains and losses (RMB)
Net cash flow arising from operating activities
575,053,217.35 -588,496,116.82 197.72%
(RMB)
Basic earnings per share (RMB/Share) 0.0582 0.0356 63.48%
Diluted earnings per share (RMB/Share) 0.0582 0.0356 63.48%
Weighted average ROE 1.24% 0.76% Increase by 0.48 percentage points
Changes at the end of the reporting
End of current period End of last year period compared with the end of the
previous year (+,-)
Total assets (RMB) 16,517,739,871.56 15,190,469,756.33 8.74%
Net assets attributable to shareholder of listed
4,845,537,338.97 4,837,334,400.21 0.17%
company (RMB)
V. Accounting data difference under domestic and foreign accounting standards
(I) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting
period.
7
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
(II) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Current period Previous period Ending amount Opening amount
Chinese GAAP 60,375,199.25 37,157,511.54 4,845,537,338.97 4,837,334,400.21
Items and amount adjusted by foreign accounting rules
Foreign accounting
60,375,199.25 37,157,511.54 4,845,537,338.97 4,837,334,400.21
rules
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(III) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued from
CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement for companies
who offering domestically listed foreign shares (B-share enterprise) while engaging securities practice qualification
CPA for auditing. The Company did not compile financial report under foreign accounting rules since 2007, the
financial report of the Company is complying on the “Accounting Standard for Business Enterprise” in China, and
therefore, there are no differences of accounting data under accounting rules in and out of China at period-end.
VI. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the Found more in “Income from
8,358,775.10
write-off that accrued for impairment of assets) assets disposal”
Governmental subsidy calculated into current gains and losses(while
closely related with the normal business of the Company, the
government subsidy that accord with the provision of national policies 41,343,694.48 Found more in “Other income”
and are continuously enjoyed in line with a certain standard quota or
quantity are excluded)
8
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Gains/losses of fair value changes arising from holding of the trading
financial asset, trading financial liability and investment earnings Found more in “Income of fair
obtained from disposing the trading financial asset, trading financial 13,172,916.65 value changes”, “Investment
liability, and financial assets available for sale, except for the effective income”
hedging business related to normal operation of the Company
Switch back of the impairment for receivables that has impairment Found more in “Account
714,463.58
test independently receivable’’
Found more in “Non-operating
Other non-operating income and expenses other than the above 577,926.96 income’’ and “Non-operating
expenses’’
Less: impact on income tax 6,327,022.61
Impact on minority shareholders’ equity (post-tax) 1,573,023.82
Total 56,267,730.34
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in
Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---
Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in
Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---
Extraordinary Profit/loss
9
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section III Management Discussion and Analysis
I. Main businesses of the company engaged in during the Period
The Company is one of China's major electric appliance manufacturers, possesses four major domestic
manufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases in
Indonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, covering
the full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small household
appliances and others, at the same time, the Company enters the new industrial fields as bio-medical and with certain
achievements made.
For more than 40 years, the Company has always been adhering to the "independent innovation, created in China",
and always focus on the home appliance industry with great persistence, elaborately building the core
competitiveness of enterprises by technological innovation and product innovation. Relying on the cutting-edge
R&D team and advanced technology, Meiling continue to achieve breakthrough results in the variable frequency,
intelligence, refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields. The
Company has set up the first RoHS public testing center in Anhui Province, the national enterprise technology center,
the national industrial design center, and the 5G industrial internet innovation application laboratory. In recent years,
the Company has successively awarded several national honorary titles as the “Smart Refrigerator Intelligent
Manufacturing Pilot Demonstration Project”, the “National Green Factory”, the “National Industrial Design Center”
and “National Leading Enterprises of Qualify in Home Appliance Industry” etc. At the same time, many products
of Meiling have repeatedly won a number of domestic awards, continuously demonstrating the capabilities and
strength of Meiling's intelligent manufacturing and Meiling brand intelligent innovation technology. In the “2022
China Refrigerator Industry Summit”, Meiling won the 2022 China Refrigerator Industry Clean and Sterilization
Pioneer Brand Award, its product Meiling Very Clean Series BCD-550WP9BT won the "2022 China Refrigerator
Industry Full Space Sterilization Best-Selling Product" Award, and Meiling Spectral Freshness Refrigerator BCD-
413WP9BY won the "2022 Outstanding Channel Performance Product" Award; Changhong 3P Guest Restaurant
Shared Air Conditioner KFR-72LW/Q6C+R1 won the title of "The World's 3P Guest Restaurant Mechanical Air
Conditioner with the Longest Air Supply Distance"; Meiling kitchen appliances, small household appliances, and
drinking water products won the "National Quality Leading Brand in the Household Appliance Industry"; Zhongke
Meiling Cryogenic Technology Co., Ltd, a subsidiary of biomedical business, was recognized by the Ministry of
Industry and Information Technology as the third batch of "little giant" enterprises with specialization, refinement,
specialty and novelty.
In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Company always
adheres to the strategy of smart and variable frequency products, promoted the Company’s products to transform
and upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness of products in
the industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energy efficiency
upgrades and effectively resolving the pain points of customers. Under the guidance of the “intelligent” strategy, in
recent year, the Company has released and listed a number of CHiQ series of smart refrigerators, air-conditioning
10
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
and washing machine, “M-Fresh” refrigerators, “M-Fresh” comprehensive thin series products and “very clean”
series of refrigerators, Meiling always leads the trend of the industry by solving the pain points of users effectively.
In April 2022, Meiling launched the M Fresh "Mega Capacity" refrigerator, which not only meets the consumer
demand for embedding and small footprint, but also meets the user's demand for storage. In May 2022, the industry's
first smart refrigerator tea bar machine using the refrigerator foaming process to make the body and door for the tea
bar machine was launched, which solved the problem that the tea bar machine could not be refrigerated. In the same
month, Meiling Biomedical launched a new generation of "YunzhianAutomated Sample Library", an original -80 ℃
separate storage unit, which has the advantages of high compatibility, multi-partition, phased, and multi-system
guarantee, and integrates IoT technology to provide safer and smarter automated sample storage solutions. In June
2022, the MG100-14598DHCZ product of the Super Oxygen Clean Brightening series was released. This product
not only continued the core function of ultra-thin and large drum diameter, but also pioneered the "drying tunnel
washing" function, which has the effects of cleaning, health and deodorization. The ultra-high standard technology
once again demonstrates the hard core strength in the core technology field of washing machines. In July 2022,
Meiling Very Clean 632WUPBT refrigerator, which adopts "MNC + long-term deodorization and sterilization"
technology, mainly focuses on the core functions of disinfection, sterilization and deodorization. The inactivation
ratio for various bacteria and viruses reaches 99.99%, achieving a full range of health care, and creating a real
healthy life for users.
Facing the future, the Company will implement the management policy of “one goal and three main lines” and
further improve the layout of whole scene of smart home, accelerate the intelligentization of home appliances, form
a dual-growth engine of “hardware + services”, drive the transformation and upgrading of the Company’s
profitability model, investigate the new value-added service models for home appliance enterprises, meet new
competition pattern in the industry, and achieve its own sustainable and stable development under the guidance of
the core values of “professionalism and shared development”. Meanwhile, based on the “Smart Home Eco-system
Project” and the existing products, the company will enhance the R&D, manufacturing, sales and cooperative
capabilities of integrated white goods so as to provide a complete set of smart scene system solutions for users.
During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner,
washing machine, kitchen & toilet products, small home appliances and biomedical etc., total amounting to 10.138
billion yuan, a 99.16% of the operating income.
II. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the famous home appliances manufacturers in China, owns several product lines such as
refrigerator, freezing box, air conditioner, washing machine, small household appliances and biomedical etc.
“Meiling” brand is listed as one of the most valuable brands in China, we own the young brand "Athena" and
gradually build the "M Fresh" product brand. In recent years, the company has been continuously improving the
core competitiveness of the brand through measures such as reshaping the brand image, continuously innovating
core technologies and developing high-end intelligent products. In terms of continuous innovation of core
11
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
technologies, on the one hand, in order to comply with the development needs of the industry and the market, the
company continuously promotes innovations in fresh-keeping, intelligence and frequency conversion technologies
to maintain its leading position in the industry. On the other hand, under the boost of consumption upgrade, in order
to meet the individualized, differentiated and diversified demands of consumers, the company continues to
accelerate product innovation and enhance the comprehensive competitiveness of the brand around products. In the
development of high-end intelligent products, product innovation has been continuously promoted through
continuous technological innovation, and through the introduction of high-end intelligent products, it can timely
meet the market demand, and enrich and enhance the brand image.
In terms of refrigerator products, the company has independently developed core technologies such as "zero shock"
and "slight freeze" fresh-keeping technology, water molecule activation preservation technology, full thin GLS
integration technology, MCN + deodorization and fresh-keeping technology, etc., leading the refrigerator industry
to return to the main field of fresh-keeping and fully enter the era of "thin" and "long-lasting deodorization". At the
same time, the company has successively released the "M Fresh" series of refrigerators, the "M Fresh" full thin
series of products, the "M Fresh" second-generation series of refrigerators, and the "Very Clean" series of
refrigerators, which created "Meiling Fresh", "Meiling Clean", "Meiling Embedding" brand name cards, and
established brand images. In terms of washing machine products, through the development of three black
technologies, i.e. inner barrel conical bulging technology, inclined barrel stabilization technology and cloud tray
condensed technology, we have created a "thin", "large" and "smart" industry business card for washing machines,
providing users with new embedded experience. In terms of air-conditioning products, the company adheres to the
product concept of "good sleep + good air + comfort", focuses on quality, experience and health for product upgrades,
strictly controls quality based on comfort and reliability indicators, and creates the "extremely quiet, extremely
power saving, extremely intelligent" brand experience of air conditioners, and carries out product series layout
around three core functions of "fresh air ventilation, self-cleaning, and complete dust-free". In terms of kitchen,
bathroom and small household appliances, the company focuses on building an influential brand of water ecological
appliances and operation services, strengthens the lineup of drinking water products, and develops the integration
of drinking water series products with refrigeration and household fields to provide users with better products and
services. In terms of biomedical treatment, the company adheres to the development strategy "based on the relevant
diversification in the biomedical field", focuses on the three major business strategic layouts of life science, smart
cold chain and family health, and continues to promote product innovation, research and development and quality
improvement.
Promoting the remodeling of brand ability through the continuous upgrading of products, Meiling will achieve a
rejuvenated, intelligent, international and professional brand image. Through gradual construction of the ideas of
Wonderful Start Point, Wonderful Life Circle and Wonderful Ecology Circle, Meiling has become a people-oriented
artist specializing in white appliances, a smarter scientific expert and a more reliable house keeper.
(2) Product capacity
For more than 40 years, the Company has been focusing on the refrigeration industry, and has developed a number
of different models of refrigerators, mainly including the "M fresh" first generation series of fresh-keeping
12
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
refrigerators carrying water molecule activation preservation technology, the "M fresh"second generation series of
fresh-keeping refrigerators with "zero shock" and "slight freeze" fresh-keeping technology, "Star" series mother and
infant refrigerators, "Very Clean" series fresh-keeping and cleaning refrigerators, the ultra-thin side-by-side
refrigerator BCD-529X, large capacity and equipped with ADF + negative ion antibacterial magic stone series (O2O)
BCD-616B/532B and other 5 glass door refrigerators, M Fresh "Mega Capacity" BCD-681WQ3S refrigerator, -32
degrees cryogenic lock fresh BCD-500L, French BCD-546WP9B, BCD-550WUP9BT series refrigerators, very
clean and sterilized BCD-632WUPBT series refrigerators, export vertical air-cooled freezers, SC-270WE single-
door refrigeration vertical display freezer, CX-1000 chromatography freezer, CT-G185R high-speed freezing
laboratory centrifuge, etc. On the "Very Thin" front loading washing machine platform, Meiling has successively
released series of products such as super-oxygen clean and 5G II. The aforementioned washing machines not only
continue the core functions of ultra-thin and large inner barrel, but also are smarter and healthier. Its automatic
delivery and voice technology are more intelligent and convenient, the pioneered "drying channel washing" function
has the functions of cleaning, health, and deodorization. The ultra-high standard technology once again
demonstrates the hard core strength of washing machine products in the core technology field. Deeply dug into the
industry subdivision track, adopted the "far-to-near soft and comfortable wind" technology and released the shared
series floor-standing air conditioners for living room and dining room, and opened up the industry's living-dining
room air-conditioning market segment; it was the first to release the "completely dust-free" series of wall-mounted
air-conditioners, adopting fully enclosed and dust-proof design for the air inlet and outlet, which opened up a new
track for the health industry. Launched the industry's smallest 5P floor-standing air conditioners, of which the
fashionable style, high performance, and high cost performance have opened up a new choice for 5P floor-standing
air conditioners. Kitchen, bathroom and small household appliances have carefully cultivated the industry field
according to user needs, strengthened the integration of product functions, and launched the industry's first smart
refrigerator tea bar machine, breaking through the bottleneck of product refrigeration technology and leading the
high-end and high-quality development of the industry. Biomedical launched a new generation of
"YunzhianAutomated Sample Library", an original -80 ℃ separate storage unit, which has the advantages of high
compatibility, multi-partition, phased, and multi-system guarantee, and integrates IoT technology to provide safer
and smarter automated sample storage solutions.
The Company owned advanced development and quality assurance systems, passed management system
certification of ISO9001, ISO14001 and ISO45001. Product quality has been quality assurance and product
performance is reliable. At the same time, the company has authoritative certifications including “national-level
technology center”,”national-level industrial design center”, “national-level intellectual property demonstration
enterprise”, “national-level industrial product green design demonstration enterprises”, “ Anhui Green Energy-
saving Refrigerator Engineering technology research center”, “Anhui energy-saving and fresh green refrigerator
engineering research center ”as strong guarantees. In terms of technical research, it is committed to applying basic
technology research and industrialization transfer, and has established a technical strategic plan with “intelligence,
frequency conversion, simulation, fresh-keeping” as core technologies, and “refrigeration, new material and foam”
as key technologies. Adhere to the product strategy of “thin, fresh, clear, embedded and intelligent”, aim at the users’
pain point, making the refrigerators return to essence of use. Promoting the transformation and upgrading of
13
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
products to high-end by seizing the opportunities of “large volume ratio”, “fresh-keeping”, “odor clear”, “embed in
home”, “intelligent upgrade” and “green appliances”. In terms of product development, based on the technological
research results and consumption upgrade requirements, updated the annual product planning and development
outline, increasingly upgraded the product structure, continued to increase the development of mid-to-high-end
products with characteristic of thin-wall, air-cooling, large-volume, frequency conversion, intelligence, simulation,
smart cleaning, odour clean, sterilization, dust removal, silent and developed competitive core products. At the
strategic level of the company, continued to adhere to the core idea of “intelligent strategy, productism”, and
promoted the company's product transformation, technological innovation, and industry leadership by advancing
the subsequent research and development, promotion and technical update of intelligent and frequency conversion
products. Additionally, the Company will improve their home appliances product lines continuously, layout several
product business as AC, washing machines, kitchen and bathroom, small appliances and biomedical products, to
build a comprehensive home appliance enterprise.
(3) Operation capacity
The Company continues to carrying out bench-marking activities to improve the operation and management
standards and competitiveness of the Company. At the same time, the internal management capability has been
continuously improved by continuing to carry out the improvement work in "human efficiency, money efficiency
and material efficiency". The company established a hierarchical sharing system with clear goals, quantitative
indicators, performance-oriented performance appraisal and incentives to activate internal productivity. Taking
value chain management as the main line, continued to carry out value creation work, and enhanced the company's
competitiveness. Meanwhile, continuously improved the internal control system and improved the ability to prevent
risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system, which can provide users with
high-quality services covering all categories of white goods. The domestic market is actively accelerated to realize
the marketing transformation from product line-oriented sales management to channel- and user-oriented business
services, from single-category marketing to full-category marketing, quickly building an operation management
system with reasonable commercial inventory management as the core and a value management system core with
terminal retail price; through determined bench marking match, achieved products leading and efficiency
improvement and builds the capability for marketing system and development potential for long period of time. In
overseas markets, the company increased the investments in overseas marketing agencies, research and development
bases, production bases, etc., developed the market actively and cooperated with internationally renowned
household appliance brands and distributors, continued to optimize the customer structure and enhance the product
structure, accelerated the overseas branding, improve overseas brand awareness, in counter with the overseas market
segments, tailored marketing strategy to promoting the expanding driven by marketing.
III. Main Business Analysis
(1) Overview
Whether the disclosure is the same as the main businesses of the company engaged in during the Period
14
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
□Yes √No
1. Introduction
In the first half of 2022, the external environment of the market continued to deteriorate. The sporadic pandemic
seriously affected the release of demand. The interruption of national logistics and transportation by the pandemic
also made the market worse.With the pandemic under control, the logistics industry has also recovered, the supply
side of the household appliance manufacturing industry has recovered, and the demand side has begun to show a
positive trend. In the first half of this year, the retail sales of China's household appliance market reached 338.9
billion yuan, a decline of 9.3 percent on a year-over-year basis, according to total data released by All View Cloud
(AVC).
In the first half of the year, revenue scale of the Company has achieved a y-o-y growth with profitability improved
and result in a virtuous development. Operating income as a growth of 6.47%, net profit rose 30.52%.
2. Progress of the company's development strategy and business plan during the reporting period
During the reporting period, according to the development strategy, the Company comprehensively implemented
the guidelines of “one goal and three main lines”, actively push forward the operation plans and carried out following
works including:
1.One goal
(1) Refrigerator (cabinet)
In the domestic market, the company insists on creating the "fresh", "clean" and "embedded" featured product
business cards. With reasonable commercial inventory as the core, it promotes the digital transformation of its own
channels, and strategically expands the pre-installation market and ODM business. The online C-end operation
capability has been steadily improved, profit and loss has been improved, the B-end expansion capabilities has been
improved, and the online scale in the first half of the year increased by more than 20% on a year-on-year basis.
In the overseas markets, faced with soaring shipping costs and severe shipping situation, the company gathers near
shipping routes, uses shipping resources to grab orders, and implements "production based on sales orders" to
improve efficiency, and assists business development by focusing on best-selling products, advantageous markets,
and key customers. During the reporting period, the company's refrigerator (freezer) business achieved revenue of
about 3.344 billion yuan, a year-on-year decrease of 12.53 %.
(2) Air-conditioning
In the domestic market, we have made popular floor-standing air conditioner and wall-mounted air conditioner
online, and expanded our unique value products offline. In terms of channel improvement, we implemented special
action plans and achieved initial results. In addition, in the first half of the year, two waves of high temperature
15
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
weather in March and June in Sichuan and Chongqing significantly boosted retail sales, and the O2O channel
boosted beyond expectations, with a significant year-on-year increase. The company strengthened cooperation with
core strategic customers, and realized a large increase in ODM business.
In the overseas markets, we continues to carry out special actions to actively snatch orders, and gets repeat orders
by improving customer service, improving customer satisfaction and promoting fast delivery. Relying on the
improvement of product strength, we vigorously promotes variable frequency products, launches new products (D
platform), promotes high-end products (EVA series, voice air conditioners, etc.), and promotes differentiated
products (such as generator air conditioners, current controllable energy-saving variable frequency air conditioners),
constantly adjusts product structure, and competes for new customers. During the reporting period, the company's
air-conditioning business achieved revenue of about 5.351 billion yuan, a year-on-year increase of 35.16 %.
(3) Washing machine
The company's washing machine industry insists on differentiated and dislocated competition, and optimizes and
adjusts the product structure. In the domestic market, the company gives full play to its "very thin" differentiated
competitive advantage, and closely focuses on the needs of users, and has launched the super-oxygen cleaning series
of front-loading washing machines to further enhance the competitiveness of Meiling’s mid-to-high-end washing
machine products. In the overseas markets, the company expands washing machine business with industrial thinking,
creates washing machine products in line with overseas markets, and promotes washing machine products with the
help of refrigerator and freezer customers, and has achieved certain results in various markets. During the reporting
period, the company's washing machine business achieved revenue of about 393 million yuan, a year-on-year
increase of 21.89%.
(4) Kitchen & bathroom, small appliances
The company adheres to drinking water, gas hot water products as the core products. Based on traditional marketing,
it actively embraces new retail, vigorously explores new channels, comprehensively sorts out the organizational
structure of offline channels from the inside, and promotes the flat transformation of offline channels. It establishes
online shop groups on JD, Tmall, Pinduoduo and other platforms and quickly builds self-operated shop matrix to
improve the sales conversion rate and associated purchase rate. During the reporting period, the company's kitchen
and bathroom, small household appliances business achieved revenue of about 727 million yuan, a year-on-year
growth 27.20%.
(5)Biomedical
Focusing on the three major business strategic layouts of life science, smart cold chain and family health, strengthen
innovative research and development of new technologies and new products, optimize research and development
processes, stimulate innovation and research and development vitality, and form sustainable technological
innovation capabilities. Based on market demand, deepen the market segmentation and channel layout, and
16
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
constantly improve the level of market services; promote the standardization of production processes, enhance the
level of value chain management, and improve production capacity efficiency and product quality; absorb
outstanding talents, improve the construction of talent training system, and stimulate the vitality and creativity of
the company. The Company's biomedical industry is mainly developed on the platform of its subsidiary Zhongke
Meiling. According to strategic planning and business development needs, Zhongke Meiling is promoting the public
offering of shares to unspecified qualified investors and the listing on the Beijing Stock Exchange. Up to now, the
Beijing Stock Exchange has officially accepted the application of Zhongke Meiling Cryogenic Technology Co., Ltd
to issue shares to unspecified qualified investors and be listed on the Beijing Stock Exchange. During the reporting
period, the biomedical business achieved revenue of approximately 213 million yuan, a year-on-year decrease of
18.21%.
2．Three main lines
(1)Efficiency priority
With reasonable commercial inventory as the core, the whole chain of "retail end - production end - logistics end"
is driven to operate efficiently and collaboratively to maximize efficiency. It mainly improves delivery efficiency
through model innovation, bottleneck breakthrough, and production and sales collaboration, and continues to reduce
the number of models, optimizes the supply chain, replenishes in time, maintains reasonable inventory, digitally
transforms basic channels, and strengthens the assessment of the accuracy of sales forecasts. In the first half of the
year, commercial inventory turnover days of refrigerators decreased by over 20%, and air conditioners increased by
over 40%.
In terms of organizational efficiency, the company focuses on strengthening operation, and adjusts the R&D and
production organization and functions of the refrigerator and freezer business headquarters in accordance with the
management principle of "small platform, big business", thus, the organization has become more flat, and the
decision-making efficiency has been further improved.
The company is accelerating its digital transformation. On the manufacturing end, continue to improve the Meiling
Industrial Internet platform, consolidate high-end manufacturing capabilities, and enhance large-scale flexible
customized production capabilities. On the market side, promote the "C+3 customer order system" model, based on
online collaboration and data parallel decision-making of four plans of sales, procurement, manufacturing, and
logistics, and quickly respond to market demand with punctual and efficient production and delivery capabilities.
On the product side, use advanced R&D tools such as PLM and digital simulation to dig into the data value of
market, R&D, process, manufacturing, service and others to achieve deep understanding of user pain points and
accurate access to consumption trends. At the same time, improve operational efficiency through digital operation
of the whole value chain.
(2)Product leadership
Through the close combination of technology empowerment and product application, the company promotes the in-
17
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
depth research and capability improvement of core technologies, key technologies and hard-core technologies, and
the competitiveness of products is continuously strengthened. In the first half of the year, we continued to promote
the “fresh, clean, and embedded” refrigerators and the “thin, large, and intelligent” washing machines, and released
a variety of products, such as the “Very Clean” series refrigerators, super-oxygen clean, Tianpu II washing machines,
etc., and made every effort to create differentiated and high-profit "high-quality products" with Meiling
characteristics. Focus on unique value products to carry out annual promotion of air conditioners, and create three
business cards of "good comfort, good air, and good sleep" around "wind - wind feeling, air inlet and outlet, and air
conditioning". Good Comfort mainly promotes the "living room and dining room shared floor-standing air
conditioner" series, Good Air mainly promotes the "all dust-free" series, as well as the industry's smallest 5P floor-
standing air conditioner, and Good Sleep mainly promotes the static oxygen wall-mounted air conditioner. Kitchen,
bathroom and small home appliances refine their product layout around the core strategy of "water ecology", and
launch the industry's first refrigerator tea bar machine and the condensing gas heating water heater with energy
efficiency grade 1. Biomedical launches a new generation of "Yunzhian Automated Sample Library", an original -
80 ℃ independent storage unit, to provide users with a safer and more intelligent automated sample storage solution.
At the same time, in terms of improving product competitiveness, the company has launched a product
competitiveness model, which evaluates product arrays and individual products in terms of appearance, cost
performance, quality, experience and other dimensions, and continuously improves product competitiveness. During
the reporting period, the success rate of new refrigerator and freezer products in the market has increased, and the
research on wide-speed full-frequency conversion technology and the application of air-cooled refrigerators have
won the Science and Technology Improvement Award of China National Light Industry Council, which not only
marks that Meiling's technological innovation strength has been widely recognized by the industry and society, and
also highlights Meiling's continuous satisfaction and innovation strength for user needs.
(3) Benchmarking
Comprehensive benchmarking strengthens internal efficiency improvement. The company has been focusing on
promoting product cost benchmarking, share increase, average price increase and other work, and has achieved
certain results, i.e. reduced cost through bidding and negotiation, introduction of new suppliers, updated application
of price models, new foaming process, new materials, design optimization and other measures. Benefiting from the
successful creation of "Jingxiaozhai" air conditioners and relying on C-end refined operational breakthrough, air-
conditioning share at JD.com reached 1.5%, an increase of 0.8 percent on a year-on-year basis. Relying on product
advantages, it strengthened terminal retail-driven delivery of of cargo from warehouses. According to the monitoring
data of AVC, the offline share of refrigerators increased by 0.22%, and the offline share of freezers increased by
2.28%, and the offline share of washing machines increased by 0.44%.
(2)Y-o-y changes in the key financial data
In RMB
Current Period Same period last Y-o-y Causes
18
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
year changes
(+,-)
Operation income 10,224,503,551.19 9,602,759,345.29 6.47% No major changes
Operation cost 9,061,080,531.06 8,177,231,196.17 10.81% No major changes
According to the implementation of guidelines Q&A
Sales expense 666,066,309.98 984,805,928.94 -32.37% in the Period, relevant expenses as transportation costs
adjusted to item of “Operation cost”
Administrative
164,132,141.97 152,957,426.98 7.31% No major changes
expense
Mainly due to the exchange gains in the Period and
Financial expense -62,786,327.96 -5,695,990.10 -1002.29% there is an exchange loss in the same period of the
previous year
Mainly due to the decline of taxable income in the
Income tax expenses -10,115,573.46 37,086,971.38 -127.28%
Period
Mainly due to the increase of investment in R&D in
R&D investment 272,521,887.72 217,199,272.52 25.47%
the Period
Net cash flow from Mainly due to the increase of cash from commodity
575,053,217.35 -588,496,116.82 197.72% sales, and providing labor service increase from a year
operation activity
earlier
Net cash flow from
-844,422,733.68 -699,480,638.02 -20.72% Mainly due to the restricted time deposits in the Period
investment activity
Net cash flow from
-352,220,645.93 -356,001,274.24 1.06% No major changes
financing activity
Net increased amount
Mainly because the net cash flow from operation
of cash and cash -602,548,686.03 -1,657,978,314.35 63.66%
activity increased from a year earlier
equivalent
Mainly because forward foreign exchange contract
Investment income 13,816,261.75 52,533,705.90 -73.70%
delivery gains decreased from a year earlier
Credit impairment Mainly because impairment loss on account receivable
-50,466,619.13 -15,121,003.89 233.75%
loss increased from a year earlier
Assets impairment Mainly because the provision for decline in value of
-29,791,822.84 -43,310,366.42 -31.21%
loss inventories declined from a year earlier
(3)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
(4) Constitute of operation revenue/income
In RMB
Current Period Same period last year Y-o-y
Ratio in operation Ratio in operation changes
Amount Amount (+,-)
revenue revenue
Total operation
10,224,503,551.19 100% 9,602,759,345.29 100% 6.47%
revenue
According to industries
Manufacture of
household 10,138,489,064.28 99.16% 9,076,019,575.56 94.51% 11.71%
appliances
19
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Other business 86,014,486.91 0.84% 526,739,769.73 5.49% -83.67%
According to products
Refrigerator,
3,557,279,193.80 34.79% 4,083,961,202.33 42.53% -12.90%
freezer
Air-conditioning 5,350,650,174.76 52.33% 3,958,753,350.50 41.23% 35.16%
Washing machine 393,315,713.02 3.85% 322,671,076.35 3.36% 21.89%
Small appliance
and kitchen & 727,498,495.75 7.12% 571,948,185.39 5.96% 27.20%
toilet
Other products 109,745,486.95 1.07% 138,685,760.99 1.44% -20.87%
Other business 86,014,486.91 0.84% 526,739,769.73 5.48% -83.67%
According to region
Domestic 7,556,599,775.06 73.91% 6,912,387,260.07 71.98% 9.32%
Foreign 2,667,903,776.13 26.09% 2,690,372,085.22 28.02% -0.84%
(5)The industries, products or regions that accounting for over 10% of the Company’s operating revenue or
operating profit
√Applicable □ Not applicable
In RMB
Increase/dec
Increase/decr Increase/decrea
rease of
Gross ease of se of gross
Operating revenue Operating cost operating
profit ratio operating profit ratio y-o-
revenue y-o-
cost y-o-y y
y
According to industries
Manufacture of
household 10,138,489,064.28 9,027,583,283.96 10.96% 11.71% 17.09% -4.09%
appliances
According to products
Refrigerator,
3,557,279,193.80 3,052,742,990.21 14.18% -12.90% -8.43% -4.19%
freezer
Air-conditioning 5,350,650,174.76 4,907,155,572.46 8.29% 35.16% 38.60% -2.28%
Small appliance
and kitchen & 727,498,495.75 642,738,038.67 11.65% 27.20% 35.55% -5.44%
toilet
According to region
Domestic 7,475,522,523.09 6,574,576,772.52 12.05% 16.94% 26.12% -6.40%
Foreign 2,662,966,541.19 2,453,006,511.44 7.88% -0.77% -1.76% 0.92%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year’s scope of period-end
□ Applicable √ Not applicable
20
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
(6) Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
Products of air-conditioning has a y-o-y growth in operation revenue and operation costs, mainly resulted by the
full implementation of the business policy as “one goal and three main lines” and positive demand in China and
international market.
IV. Analysis of the non-main business
√ Applicable □Not applicable
In RMB
Whether be
Ratio in
Amount Note sustainable
total profit
(Y/N)
Mainly due to the income of long-term equity
Investment income 13,816,261.75 22.08% investment and forward foreign exchange contract N
delivery proceeds in the Period
Gains/losses from Mainly due to the income on change in fair value
3,562,737.04 5.69% of the forward foreign exchange contract in the N
change of fair value
Period
Mainly due to the provision for losses on decline
Asset impairment -29,791,822.84 -47.61% N
in value of inventory in the Period
Non-operating income 2,910,887.79 4.65% Mainly due to the income from fines received N
Mainly due to the loss on retirement of non-current
Non-operating expense 2,332,960.83 3.73% N
assets in the Period
Mainly due to the government subsidies received
Other income 48,325,391.81 77.22% N
in the Period
Mainly due to the provision for credit impairment
Credit impairment loss -50,466,619.13 -80.64% N
loss on account receivable in the Period
V. Analysis of assets and liability
(1) Major changes of assets composition
In RMB
End of current period Year-end of last year
Ratio in Ratio in Ratio
Notes of major changes
Amount total Amount total changes
assets assets
The percentage of total
Monetary fund 6,183,005,095.11 37.43% 5,938,823,396.21 39.10% -1.67% assets declined due to the
increase in total assets
Mainly due to the increase
Account receivable 2,270,853,232.12 13.75% 1,440,874,691.28 9.49% 4.26%
in operation revenue
Contractual assets 2,313,522.40 0.01% 0.01% No major changes
Inventory 1,607,718,382.71 9.73% 1,356,357,419.80 8.93% 0.80% Mainly due to the increase
21
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
in production in the
Period
Investment real
52,191,185.68 0.32% 53,149,934.45 0.35% -0.03% No major changes
estate
Long-term equity
88,915,648.08 0.54% 86,631,660.53 0.57% -0.03% No major changes
investment
Mainly due to the
Fix assets 2,266,504,611.74 13.72% 2,303,122,699.92 15.16% -1.44% decrease in assets
investment in the Period
Construction in
103,923,104.08 0.63% 98,469,862.45 0.65% -0.02% No major changes
progress
Right-of-use assets 40,286,720.53 0.24% 45,367,918.31 0.30% -0.06% No major changes
Mainly due to the new
Short-term loans 1,087,291,446.15 6.58% 622,874,652.77 4.10% 2.48% short-term borrowings in
the Period
Mainly due to the
Contractual decrease in accounts
351,317,980.38 2.13% 515,004,115.23 3.39% -1.26%
liability received in advance
during the Period
Long-term loans 158,000,000.00 0.96% 168,000,000.00 1.11% -0.15% No major changes
Lease liability 30,061,422.30 0.18% 33,225,912.15 0.22% -0.04% No major changes
(2) Main overseas assets
√ Applicable □ Not applicable
Reas Foreign Whether
on assets exist
Operat
Content of for Asset Locati Control measure to ensure the Income accounted significant
ion
assets the size on security of assets (RMB) for net impairme
mode
form assets of the nt risk
ation Company (Y/N)
Details of risks control
measures have been disclosed
by the Company by way of
60% equity
Inves announcement on appointed
of US$ 7.8
tment Pakist media (No. 2011-028, No.
Changhong 03 Sales
estab 2011-032, No. 2014-023, No. -741,419.00 -0.04% N
Ruba an
lishm million 2014-026, No. 2016-027, No.
Trading
ent 2016-032, No. 2017-053 and
Company
No. 2017-059) on 28 May
2011, 19 April 2014, 25 March
2016 and 10 August 2017
Details of risks control
40% equity measures have been disclosed
of by the Company by way of
Inves
Changhong US$ 6.9 announcement on appointed
tment Pakist Manuf
Ruba 761 media (No. 2011-028, No.
estab 0.00 -0.22% N
Electric an acture 2011-032, No. 2014-023, No.
lishm million
Company( 2014-026, No. 2017-053 and
ent
Private)Lt No. 2017-059) on 28 May
d. 2011, 19 April 2014 and 10
August 2017
22
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
100% KELA
equity of PA Details of risks control
CHANGH Inves
GADI measures have been disclosed
ONG tment US$ 6
NG, Sales by the Company by way of
MEILING estab -966,902.47 0.35% N
million announcement on appointed
ELECTRI lishm JKT,
media (No. 2016-027 and No.
C ent Indon 2016-033) on 25 March 2016
INDONESI
A. PT esia
100%
equity of Details of risks control
Inves
CH- measures have been disclosed
tment US$ 1 Philip
Meiling Sales by the Company by way of
estab -844,501.46 0.04% N
Internation million pines announcement on appointed
lishm
al media (No. 2019-083) on 7
ent
(Philippine December 2019.
s) Inc.
Other notes N/A
(3) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
Accu Dev
mulati aluat
ve ion
chang of
Changes of
es of with Amount of
Amount at the fair value Sales in the Amount at end of
Items fair dra purchase in the Other changes
beginning period gains/losses in period the period
value win period
this period
reckon g in
ed the
into peri
equity od
Financial
assets
1.Trading
financial
assets
(derivativ 17,997,086.19 29,478,307.89 380,000,000.00 220,000,000.00 709,401.15 208,184,795.23
e financial
assets
excluded)
2.Receiva
ble 1,808,109,301.56 -428,009,007.47 1,380,100,294.09
financing
3.Other
581,980,440.70 5,779,799.20 576,200,641.50
non-
23
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
current
financial
assets
Subtotal
of
2,408,086,828.45 29,478,307.89 380,000,000.00 225,779,799.20 -427,299,606.32 2,164,485,730.82
financial
assets
Above
2,408,086,828.45 29,478,307.89 380,000,000.00 225,779,799.20 -427,299,606.32 2,164,485,730.82
total
Financial
12,304,272.41 26,624,972.00 38,929,244.41
liabilities
Other changes:
Other change of trading financial assets mainly due to the provision of income from financial products; other change of receivable
financing due to the decrease in note receivable with the objective of both collecting contractual cash flow (collections) and selling
(endorsement or discounting)
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(4) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge and
guarantee. As for other assets have restriction on rights found more in relevant content of “63. Assets with restricted
ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X. Financial Report
VI. Investment analysis
(1) Overall situation
□Applicable √ Not applicable
(2) The major equity investment obtained during the reporting period
□Applicable √ Not applicable
(3)The material non-equity investment during the reporting period
□Applicable √ Not applicable
(4)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
24
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
The Company had no securities investment in the reporting period.
2. Derivative investment
√ Applicable □ Not applicable
In 10 thousand yuan
Amount of Ratio of
Whether Amount reserve for investment
Relate Investment Amount Actual
related purchased in devaluation Investment amount at
d Initial amount at sales in the gains/loss
Operator trade or Type Start date End date the of amount at period-end in
relatio investment period- reporting es in
not(Y/N reporting withdrawing period-end net assets of
nship begin period period
) period (if the Company
applicable) at period-end
Forward
foreign
Financial
N/A N exchang 299,655.67 2021-5-26 2023-3-30 156,034.41 282,480.19 239,774.22 - 200,001.57 41.28% -1,261.19
institution
e
contract
Total 299,655.67 -- -- 156,034.41 282,480.19 239,774.22 - 200,001.57 41.28% -1,261.19
Capital resource Own fund
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board
2022-3-31
for investment of derivatives (if applicable)
Disclosure date for approval from board of
shareholders for investment of derivatives (if 2022-4-29
applicable)
Risk analysis and controlling measures for Risk analysis:
derivatives holdings in the Period (including
25
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
but not limited to market risk, liquidity risk, 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain market
credit risks, operation risk and law risks etc.) risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate fluctuations. The
Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency exchange rates,
combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange
contracts, and make dynamic management to the business, to ensure reasonable profit level.
2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade
authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract
price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank,
Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and
management whose failure and possible losses to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related
management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control.
Invested derivative products have changes in The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22 -
market price or fair value in the Period, as for Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value of
analysis of the fair value of derivatives, derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting
disclosed specific applied methods and period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the
correlation assumption and parameter setting Company is -12.6119 million yuan.
Specific principle of the accounting policy and
calculation for derivatives in the Period
Not applicable
compared with last period in aspect of major
changes
Upon inspection, the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in strict compliance with the Shenzhen
Stock Exchange Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board , the Articles of Association, Management Measures on
Special opinion on derivative investment and Company Authorization, Management System in relating to Foreign Exchange Forward Deals, and these deals were conducted within the authorization scope under general
risk control by independent directors meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign exchange transactions
are operates closely related to the routine operation requirement of the Company and based on normal operating and production, which is relying on specific business
operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the
26
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break of relevant
rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially
minority shareholders, were not prejudiced.
3.Application of raised proceeds
√ Applicable □ Not applicable
(1) Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand yuan
Total raised Raised
Cumulative Ratio of
Total capital has Total capitals
Total raised raised capitals cumulative
Raisin Total raised accumulative purpose of accumulative Usage of the retained raised capitals and what is idle for
Way capital used has purpose of raised capitals
g year capitals raised capitals uses raised capitals expected to invested with those capitals more
in Period uses changed in has purpose of
used changed in unused than two
total uses changed
Period years
After approval of the “ proposal on closing of the
remaining fund raising investment and replenishment of
the working capital with surplus fund raised
permanently” at the 16th session of 10th BOD, the 13th
Non-
session of 10th BOS and AGM of 2021 held dated March
public
29, 2022 and April 28, 2022, its was agreed that the
offerin
2016 154,073.272276 970.54351 117,946.07 0 42,584.305127 27.64% 935.01821 Company will close the project of “intelligent R&D --
g of
management platform construction” under the
A-
“intelligent manufacturing construction project” and
share
“intelligent R&D project” . after the project closed, the
investment projects with the funds raise by 2016 non-
public offering of shares will all be completed.The
above-mentioned fund raising project still have some
27
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
remaining contractual payments and financial
management income of 9,350,182.1 yuan. The Company
will pay the remaining contract payments as planned and
use the surplus proceeds to replenish the working capital
permanently for its daily operations and business
development.
Total -- 154,073.272276 970.54351 117,946.07 0 42,584.305127 27.64% 935.01821 -- --
Explanation on General usage of raised capital
In 2016, the Company successfully offering 280,858,676 shares (A-stock) to 7 qualified investors, including Sichuan Changhong Electric Co., Ltd. (hereinafter referred as to Sichuan Changhong), with price of 5.59
yuan/Share and face value of 1.00 yuan. The total proceeds raised from the issue amounted to 1,569,999,998.84 yuan, net amount raised amounted to 1,540,732,722.76 yuan after deducted the offering expenses (tax
included) 29,267,276.08 yuan.
As of June 30, 2022, the Company accumulative used the fund raised amounted as 1179460700 yuan, total balance of special account for fund raised was 9350182.1 yuan (including 369,142.04 yuan accumulated interest
income and maturity earnings of 1,735,039.45 yuan from bank financial products)
(2) Situation of committed project of raised proceed
□Applicable √ Not applicable
(3) Change of the raised funds
□Applicable √ Not applicable
There is no change of raised funds during the reporting period.
VII. Sales of major assets and equity
(1) Sales of major assets
28
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
□Applicable √ Not applicable
No major assets are sold in the period
(ii) Sales of major equity
□Applicable √ Not applicable
VIII. Analysis of main holding company and stock-jointly companies
√ Applicable □Not applicable
(1) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name Type Main business Register capital Total assets Net assets Operating revenue Operating profit Net profit
Research and development,
Zhongke Meiling Cryogenic manufacturing and sales of
Subsidiary 72,548,200 460,367,118.01 225,013,744.69 235,704,905.75 37,635,712.20 34,977,067.97
Technology Co., Ltd.
ultra-low temperature freezer
Manufacturing of refrigeration
Jiangxi Meiling Electric Appliance
Subsidiary 50,000,000 329,823,180.80 139,812,393.11 316,893,749.46 7,371,271.74 7,375,671.74
Co., Ltd. and freezer
Mianyang Meiling Refrigeration Co., Manufacturing of
Subsidiary 100,000,000 173,913,164.56 120,480,549.80 174,755,637.60 799,630.57 91,970.82
Ltd. refrigeration and freezer
R&D, manufacturing and
Zhongshan Changhong Electric Co.,
Subsidiary foreign sales of air- 334,000,000 1,794,997,540.68 126,106,127.73 1,778,468,757.66 44,914,005.28 44,602,177.68
Ltd.
conditioning
Hefei Meiling Group Holdings
Subsidiary Sales of white goods 80,000,000 1,719,256,879.22 -356,638,304.23 2,680,436,900.73 -124,970,892.33 -127,111,190.44
Limited
R&D, manufacturing and sales
of kitchen and toilet products,
Changhong Meiling Ridian
Subsidiary 83,000,000 286,455,739.24 138,687,564.56 121,903,975.39 2,398,112.05 1,833,690.30
Technology Co., Ltd. small home appliances and
water purifier
29
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
R&D and sales of household
Hefei Changhong Meiling Life
Subsidiary appliances, kitchen appliances 50,000,000 484,728,701.85 89,120,532.45 618,374,856.05 13,640,426.72 8,755,357.31
Appliances Co., Ltd.
and small home appliances
30
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
(2) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
The method of obtaining and disposing The influence to the whole production and
Company name
subsidiaries during the report period performance
Jinan Xiangyou Electric Minor effect on the overall production and operation
Cancellation
Appliances Marketing Co., Ltd and performance of the company
Zhengzhou Meiling Electric Minor effect on the overall production and operation
Mergers & acquisition
Appliances Marketing Co., Ltd and performance of the company
(3) Description of the holding company and stock-jointly companies
During the reporting period, subsidiary Sichuan Changhong Air-conditioner Co., Ltd. and Zhongshan Changhong
Electric Co., Ltd has larger increase in net profit from a year earlier, mainly due to the big increase in operation
revenue.
IX. Structured entity controlled by the Company
□Applicable √ Not applicable
X. Risks and countermeasures
(1) risks and countermeasures
In the second half of 2022, the domestic home appliance market demand will be under pressure, and exports will be
affected by factors such as transportation costs and the market. The company will face business risks such as severe
industry situation, intensified competition, and repeated COVID-19 pandemic at home and abroad.
1.Grim industry situation
Affected by the pandemic and pandemic prevention policies, consumption, especially offline contact service
consumption, has been recovering slowly, and the consumption intention is still lower than the level before the
pandemic. The repeated pandemic has a negative impact on the overall consumption environment and consumer
confidence, and consumption, real estate, and employment have weakened. Reflected in the home appliance market,
the market uncertainty has intensified, and some enterprises in the same industry have begun to contract strategically.
2. Impact of cross-border Internet industry and challenges of new business model
With the advent of the Internet era and the era of artificial intelligence, Internet enterprises are constantly pouring
into the smart home field. Diversified and digital scene marketing will accelerate the transformation of online
channels. which not only intensifies the competition in the industry, but also aggravates the sinking of chains and
the difficulties of KA channels. Traditional home appliance enterprises are facing severe challenges.
3. Risk of price fluctuations in international transportation
Affected by the international shipping situation, ocean freight rates are still at a high level, and there is no
fundamental improvement, which will have an impact on export business
31
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
4. The impact of trade frictions and geopolitics
The company pays close attention to the impact of uncertain factors such as international trade frictions and
geopolitics on the company's global business.
In response to the above risks, combined with the industry situation in the second half of the year and the shortage
in the first half of the year, the company will seize the opportunities and turn the crisis into an opportunity in the
second half of 2022,, and implement the business plan from the following part (II).
(2)Operation plan for second half of the year
Under strategic planning, the company will continue to take “one goal and three main lines” as the guiding ideology,
main works during the second half of the year as follow:
1. Refrigerator and freezer industry
In the domestic market, we will promote customer focus, provide consumers with unique value products, promote
high-quality products and create popular products, and improve channel efficiency by reducing inventory, speeding
up turnover, and exiting from inefficient stores, carry out transformation of basic channels through unified
warehousing and distribution, digital platform, C+3, and operator models, develop trend channels through dedicated
and customized product resources, and expand incremental channels through the establishment of professional
teams and planning dedicated products. At the same time, a special promotion group for efficiency improvement
will be established to continuously improve the capital efficiency, channel efficiency, product efficiency and
management efficiency to strengthen its own capabilities.
In overseas markets, we will continue to focus on best-selling products, advantageous markets, and key customers.
Focus on products with large loading quantity and high value per container; focus on the markets with shipping
resources and low freight near the ocean routes; focus on key customers and explore market opportunities. Improve
efficiency internally while looking for optimized logistics solutions. Increase investment in brand business teams
and products, and continue to promote the construction of overseas independent brands.
2.Air-conditioning industry
In the domestic market, we will focus on the offline core areas, and the controllable online value chain. We will
consolidate and enhance existing core customers and incrementally expand TOP and ODM customers mainly
through the special plans of "granary area construction, innovation area model, Qiao Tou Bao plan, and Jing Geng
action"; improve retail promotion capabilities, and expand unique value products.
In overseas markets, we will continue to practice the concept of "profitable scale growth and profit growth with
cash flow", adhere to brand priority, improve product strength, expand customer channels, and at the same time
focus on efficiency improvement, reduce costs, improve quality, and improve service capabilities.
3.Washing machine industry
In the second half of the year, washing machine industry will adhere to the "good quality" + "hot sale" product
32
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
strategy, and build the "thin", "large", "smart" industry business card. For “good quality” products, enrich the
product lines mainly through the layout in color screen tumble washing machine and high-box wave washing
machine, and improve product competitiveness from the appearance, cost performance, experience, and quality. For
“hot sale” products, deploying the downstream channels and product integration channel in way of high price
performance, and expand the scale of washing machines. At the same time, relying on the self-produced washing
machine to develop overseas business and ODM/OEM customers, and achieve rapid breakthroughs in Meiling
washing machine scale after complete the layout of washing and care products and accessories.
4. Kitchen, bathroom and small household appliances industry
In the second half of the year, the kitchen, bathroom and small household appliances industry shall adhere to the
policy of "seeking quality in progress, transformation and upgrading". In terms of products, we will focus on
drinking water and gas heating products, promote the core products, core technologies and popular products,
improve product competitiveness and operation quality, and quickly fill the space left by the peer when exiting the
market. In terms of marketing channels, we will continue to develop new business situations such as online and live
broadcast, at the same time, continue to expand self-operated business, explore and integrate high-quality market
resources, and strengthen self-operated capabilities.
5. Bio-pharmaceutical
We will implement the development strategy of "related diversification based on bio-medical field" determinedly,
and keep up steady to push the innovation and research in aspect of new technology and new products, enrich the
product lines and higher the quality by focusing on the strategy deployment for three business, including life science,
smart cold-chain and family heath care. The life science businesses continue to strengthen the channel system
construction of the domestic market, actively deploy overseas markets, and strengthen online and offline market
training and promotion. Relying on the life science channel system, the smart cold chain businesses steadily extend
to professional logistics, pharmaceuticals, chemicals and other fields. Family health businesses actively promote
the launch of new products, build channel system construction, and promote the growth of the company's scale.
33
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section IV Corporate Governance
I. AGM(Annual General Meeting) and extraordinary general meeting
(1)AGM held in the period
Participatio
Meeting Type n ratio for Meeting date Disclosure date Resolution
investors
The General Meeting has approved one
First
Extraord proposals-”Agreement of the External Guarantee
Extraordinar
inary Provided by Sichuan Zhiyijia Network Technology
y General 6.0286% 2022-1-5 2022-1-6
General Co., Ltd ”, found more in the “Resolution of First
Meeting of
Meeting Extraordinary General Meeting of 2022 ” released on
2022
Juchao Website www.cninfo.com.cn
The General Meeting have approved 18 proposals in
total, including “Report on Works of BOD for year of
2021”, “Report on Works of BOS for year of 2021”,
“Annual Report of 2021 and Its Summary”, “Financial
Statement Report for year of 2021”, “ Plans of Profit
Annual
Distribution for year of 2021”, “Renewal of the Audit
2021 AGM General 31.9056% 2022-4-28 2022-4-29
Institution on Financial Report and Internal Control for
Meeting
year of 2022 and Payment of Remuneration” , “Change
of the Accounting Policy” and the rest, found more in
the “Resolution of 2021 Annual General Meeting”
(No.: 2022-033) released on Juchao Website
www.cninfo.com.cn
The General Meeting have approved 5 proposals in
total, including “Provide Internal Guarantee and
External Loans to Overseas Controlling Subsidiary”,
Second “Amendment of Some Clauses in Articles of
Extraord
Extraordinar Association”, “Amendment of Some Clauses in ‘Rules
inary
y General 31.9478% 2022-6-29 2022-6-30 of Procedure for the GM’”, “Amendment of Some
General
Meeting of Clauses in ‘Rules of Procedure of the BOD” and
Meeting
2022 “ Amendment of Some Clauses in ‘Rules of Procedure
of the BOS”, found more in the “Resolution of Second
Extraordinary General Meeting of 2022” (No.: 2022-
049) released on Juchao Website www.cninfo.com.cn
(2) Request for extraordinary general meeting by preferred stockholders with rights to vote
□Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
34
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
□Applicable √ Not applicable
There was no change of directors, supervisors and senior executives during the reporting period, refer to the
Annual Report of 2021 for details.
III. Profit distribution plan and capitalizing of common reserves in the period
□Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annual
IV. Implementation of the company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□Applicable √ Not applicable
The Company has no implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives in the period.
35
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section V Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
□Yes √ No
Administrative penalties imposed for environmental issues during the reporting period
Impact on
production & Rectification
Name Cause of penalty Violations Penalty results
operation of the measures
listed company
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Other environmental information disclosed with reference to the key emission units
Not applicable
Measures taken to reduce the carbon emission during the reporting period and their effectiveness
√Applicable □Not applicable
Integrate features of the carbon emissions and special requirements, the Company, perfecting energy efficiency
index assessment for internal energy management and energy consumption assessment system through tighten up
the energy management works in each production units. Continuously develop energy measurement assessment,
follows the principle of system management and establish a complete and effective management system.During the
reporting period, the Company vigorously promotes and applies the advanced energy-saving equipment and
technology within the industry, carried out energy-saving technology improvement works; carried out energy-
saving renovation measures to upgrading the automation and intelligence including high-consumption & low-
efficiency renovation for air compressor, air compressor upgrading for the join control system, compressed air
pressure reduction modification, steam piping energy saving retrofit, research and application on the infrared heating
technology, application research of air energy units, application research on electric heating to replace the steam
heating and the replacement of energy-efficient heating tiles, etc., combining energy management with the
information technology construction, at the same time of realizing the leaner production management and enhance
productivity to reduce the energy waster and emission of CO2.
Reasons for not to disclosing other information with environment concerned
The Company and subordinate subsidiaries are not belongs to the key emission units announced by the authority of
environmental protection.
36
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
II. Social responsibility
The company adheres to the core values of "dedication, responsibility, co-creation and sharing", and achieves the
purpose of "staff satisfaction, customer satisfaction, and shareholder satisfaction" through standardized operation
and scientific management. While achieving benign development, the company has also actively fulfilled its social
responsibilities through various forms and channels.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association and the
Rules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and voting procedures
of the general meeting of shareholders, equally treats all shareholders, especially small and medium shareholders
equally, and ensures that all shareholders enjoy equal status and fully exercise their own rights. Under the premise
of strictly implementing the Administrative Measures for Information Disclosure of Listed Companies, the company
actively communicates and exchanges information with investors on the company's operations and management,
financial status, etc. through annual performance briefings, Anhui service week for investors by SZSE, investor
telephone hotline, e-mails, and the investor relations interactive platform of the Shenzhen Stock Exchange, and
discloses information to all investors in a truthful, accurate, complete, concise and clear, and easy-to-understand
manner; further, the company attaches great importance to the shareholder return mechanism,in line with the
"Shareholder Return Plan for the Next Three Years (2021-2023) of Changhong Meiling Co., Ltd.", combined with
the self-management status and other factors, during the reporting period, the Company implemented the profit
distribution plan for the year of 2021 and giving shareholders a reasonable return on their investment.
2. Protection of the rights and interests of employees
In accordance with relevant laws, regulations and policies, and in light of its own actual situation, the company has
established a relatively complete employment management system, including labor contract system, salary and
performance appraisal system, welfare management system, training management system, employee vacation
management system, etc. The company pays attention to the vital interests of employees, maximizes the protection
of the legitimate rights and interests of employees and retirees, and strives to form a benefit sharing mechanism for
both company and employees, and establishes a harmonious labor relationship. At the same time, the company
shapes corporate culture and improves employee satisfaction by providing various vacations, allowances,
condolences, and organizing colorful leisure activities, sports and cultural festivals, carnivals, etc.
3. Protection of the rights and interests of suppliers, customers and consumers
The company has established a relatively complete procurement management system, optimized and revised system
documents in a timely manner, unified information system tools, strictly controlled every link of the procurement
business, cultivated core and strategic suppliers, and established a high-end supply chain cultivation plan for
component suppliers of high-end products, so as to form a synergy, cooperation and win-win situation between the
company and its suppliers.
The company attaches great importance to product quality and customer needs, and has a relatively advanced and
37
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
complete R&D and quality assurance system which has passed ISO9001, ISO14001, ISO45001 management system
certifications. Laboratory of the Company owns a CNAS qualifications and built its own RoHS laboratory to
conduct the strict testing for products, so its products are guaranteed by high quality and reliable performance. At
the same time, for different types of customers, the company implements classification evaluation and system
management, timely answers or feedbacks and deals with the questions raised by customers, continuously improves
quality services, and enhances brand image. Fully survey, understand customer needs, and do real-time follow-up
and result feedback, focus on terminal construction, terminal experience and product training to increase attention
and support, and improve the sales of high-end structural products. For export products sold to various countries,
the company conducts product certification in accordance with local laws and regulations, and also internally tests
the reliability of the product and its adaptability to different environments to ensure the reliability of the product in
the target market, and tracks usage feedback by means of customer satisfaction surveys and SCR value monitoring.
For the protection of consumers' rights and interests, the company has a relatively advanced closed-loop
management system for user services. In order to meet the service needs of users, it has gradually improved the
function construction of user interaction platforms such as 400 service hotline, brand official website, WeChat
public account, Douyin, and APP, understands and deals with user needs and problems in a timely manner, and
promotes the process visualization management and user evaluation system management of the work order
processing timeline according to user needs. We pay attention to the improvement of consumer product protection
services, and have upgraded and launched the 180-day unconditional return of Meiling M Fresh refrigerator if not
satisfied with the fresh keeping and the 180-day unconditional return of Meiling Very Clean refrigerator if not
satisfied with the sterilization, so as to effectively meet the needs of users and improve consumer satisfaction.
4. Social welfare
Over the years, the company has been actively participating in social welfare undertakings and various social
welfare activities. The company strictly implements the internal environmental operation control procedures and a
series management systems related to environment, safety and product quality, such as Energy Management
Regulations, Safety Production Responsibility System, Safety Training Management System, and "Process Quality
Control Points" Management Measures for Refrigerator and Freezer Products, ensures that the company's
production and service activities comply with relevant national legal requirements; and actively carries out actions
such as helping employees with serious illnesses and advocating voluntary donations by employees. During the
reporting period, in order to actively fulfill corporate social responsibilities, Zhongke Meiling, a subsidiary of the
company, shall donate scholarships totaling no more than 5.65 million yuan to 11 well-known domestic universities
within 10 years, which will be used to support the development of college education and enhance the brand
reputation, social image and influence of the company and its subsidiaries.
5. Consolidate and expand the achievements of poverty alleviation and rural revitalization
The company actively undertakes corporate social responsibility, and strives to contribute to local poverty
alleviation and rural revitalization while achieving its own sound operation and development. At the beginning of
2022, the company has successively carried out the "Rural revitalization with Meiling- Base Agricultural Products
38
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Fair", and the love assistance activities for Tongxin Primary School in Tiantangzhai Town, Jinzhai County,
positively responding to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and assuming
the social responsibility of enterprises.
39
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section VI Important Events
I. Commitments that the actual controller, shareholders, related party, the buyer and the
company have fulfilled during the reporting period and have not yet fulfilled by the end of
reporting period
□ Applicable √ Not applicable
The Company has no commitments that the actual controller, shareholders, related party, the buyer and the
company have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not audited
V. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
VIII. Lawsuit
(i) Major Litigation and Arbitration Matters
40
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
□ Applicable √ Not applicable
During the reporting period, the Company had no major litigation and arbitration matters.
(ii) Other litigation matters
□ Applicable √ Not applicable
To maintain the independence and integrity of "Meiling" trademark and trade name, the Company carried out serials
of lawsuits, attribution and administration suits with “Meiling” trademark and corporate name concerned, Up to
now, in view of the infringement to the Company’s "Meiling" trademark and trade name, false propaganda and
unfair competition in the market, the Company has carried out many ways including administrative reports, criminal
investigation and civil litigation to fight against infringement and counterfeiting behavior in the whole country to
stop the trademark infringement and unfair competition.
IX. Penalty and rectification
□ Applicable √ Not applicable
X. Integrity of the company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual controllers have had good
reputation, and there is no large amount due unliquidated debt sentenced by the court.
XI. Major related party transaction
(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
41
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Whether Cleari
Type Related Availa
Related Proporti over the ng
of transaction ble
Pricing transaction on in Trading limit approve form
Seri Related relate Content of related amount simila Index of
Relationship principl price (in 10 similar approved (in 10 d for Date of disclosure
al party d transaction (in 10 r disclosure
e thousand transacti thousand Yuan) limited related
transa thousand marke
Yuan) ons (%) or not transa
ction Yuan) t price
(Y/N) ction
R-three-terminal
voltage regulator,
Juchao
Com integrated Spot Website
Sichuan
modit circuits, R- excha (www.cninfo.
Changhong Controlling Marketi
y insulated gate N nge, 7 Dec. 2021; 24 com.cn) No.:
1 20,658.40 20,658.40 2.45% 65,000.00 -
Electric Co., shareholder ng price Bank Dec. 2021 2021-091,
purch bipolar
Ltd. accept 2021-092,
ased transistors, steel ance 2021-094,
plates, plastic 2021-222
parts etc.
Juchao
Other enterprise Com Website
Changhong
control under the modit (www.cninfo.
Huayi Marketi Bank
same controlling y Compressor N 7 Dec. 2021; 24 com.cn) No.:
2 19,297.58 19,297.58 2.29% 48,000.00 accept -
Compressor ng price Dec. 2021 2021-091,
shareholder and purch ance
Co., Ltd. 2021-092,
ultimate controller ased 2021-094,
2021-222
Juchao
Sichuan Other enterprise Com Spot Website
Components,
Changhong control under the modit excha (www.cninfo.
plastic parts and Marketi nge, 7 Dec. 2021; 25 com.cn) No.:
3 Mold Plastic same controlling y 42,116.85 42,116.85 5.00% 100,000.00 N -
lining accessories ng price Bank Dec. 2021 2021-091,
Tech. Co., shareholder and purch
accept 2021-092,
etc.
Ltd. ultimate controller ased ance 2021-094,
2021-222
Sichuan Other enterprise Com Base plate Spot Juchao
Marketi N 7 Dec. 2021; 26
4 control under the modit 24,772.90 24,772.90 2.94% 52,000.00 excha - Website
Changhong assembly, black ng price Dec. 2021
same controlling y nge, (www.cninfo.
42
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Jijia Fine shareholder and purch plate, bracket etc. Bank com.cn) No.:
Co., Ltd. ultimate controller ased accept 2021-091,
ance 2021-092,
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise Com
Changhong Packing boxes, (www.cninfo.
control under the modit Bank
Package Marketi N 7 Dec. 2021; 27 com.cn) No.:
5 same controlling y foam, fixed 7,365.41 7,365.41 0.87% 18,000.00 accept -
ng price Dec. 2021 2021-091,
Printing shareholder and purch support block etc. ance
2021-092,
Co., Ltd. ultimate controller ased
2021-094,
2021-222
Sichuan Juchao
Changhong Printed board Website
Other enterprise Com
(www.cninfo.
Precision control under the modit machine insertion Bank
Marketi N 7 Dec. 2021; 28 com.cn) No.:
6 same controlling y 1,157.30 1,157.30 0.14% 3,000.00 accept -
Electronics machine paste ng price Dec. 2021 2021-091,
shareholder and purch ance
Tech. Co., assembly 2021-092,
ultimate controller ased
2021-094,
Ltd.
2021-222
Juchao
Website
Sichuan Other enterprise Com
(www.cninfo.
Changhong control under the modit Cash
Marketi N 7 Dec. 2021; 29 com.cn) No.:
7 Internationa same controlling y Food 1.17 1.17 0.00% 5,000.00 settle -
ng price Dec. 2021 2021-091,
l Hotel Co., shareholder and purch ment
2021-092,
Ltd. ultimate controller ased
2021-094,
2021-222
Juchao
Guangdong Spot Website
Other enterprise Com
excha (www.cninfo.
Changhong control under the modit
Foam and carton Marketi N nge, 7 Dec. 2021; 30 com.cn) No.:
8 same controlling y 230.87 230.87 0.03% 10,000.00 -
Electronics ng price Bank Dec. 2021 2021-091,
shareholder and purch
Co., Ltd. accept 2021-092,
ultimate controller ased
ance 2021-094,
2021-222
Hefei
Other enterprise Com Inverter Marketi N Bank 7 Dec. 2021; 31 Juchao
9 279.42 279.42 0.03% 10,000.00 -
Changhong control under the modit integrated board ng price accept Dec. 2021 Website
43
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Industrial same controlling y ance (www.cninfo.
Co., Ltd. shareholder and purch com.cn) No.:
ultimate controller ased 2021-091,
2021-092,
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise Com
Changhong (www.cninfo.
control under the modit Cash
New Energy Batteries Marketi N 7 Dec. 2021; 32 com.cn) No.:
10 same controlling y 1.91 1.91 0.00% 5,000.00 settle -
ng price Dec. 2021 2021-091,
Technology shareholder and purch ment
2021-092,
Co., Ltd. ultimate controller ased
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise Com
Zhiyijia (www.cninfo.
control under the modit Cash
Network Air conditioner, Marketi N 7 Dec. 2021; 33 com.cn) No.:
11 same controlling y 178.81 178.81 0.02% 10,000.00 settle -
LCD TV ng price Dec. 2021 2021-091,
Technology shareholder and purch ment
2021-092,
Co., Ltd. ultimate controller ased
2021-094,
2021-222
Changhong Juchao
Internationa Website
Other enterprise Com
(www.cninfo.
l Holdings control under the modit Cash
Television Marketi N 7 Dec. 2021; 34 com.cn) No.:
12 same controlling y 202.84 202.84 0.02% 8,000.00 settle -
(Hong ng price Dec. 2021 2021-091,
shareholder and purch ment
Kong) Co., 2021-092,
ultimate controller ased
2021-094,
Ltd.
2021-222
Juchao
Website
Sichuan Other enterprise Com
(www.cninfo.
Changhong control under the modit Bank
Marketi N 7 Dec. 2021; 35 com.cn) No.:
13 Device same controlling y printed board 506.18 506.18 0.06% 10,000.00 accept -
ng price Dec. 2021 2021-091,
Technology shareholder and purch ance
2021-092,
Co., Ltd. ultimate controller ased
2021-094,
2021-222
44
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Juchao
Sichuan Remote controls, Spot Website
Other enterprise Com
Changhong switching excha (www.cninfo.
control under the modit
Electronic transformers, Marketi N nge, 7 Dec. 2021; 36 com.cn) No.:
14 same controlling y 1,608.43 1,608.43 0.19% 3,000.00 -
printed boards, ng price Bank Dec. 2021 2021-091,
Products shareholder and purch
electronic accept 2021-092,
Co., Ltd. ultimate controller ased
components, etc. ance 2021-094,
2021-222
Juchao
Sichuan Spot Website
Other enterprise Com
Ailian excha (www.cninfo.
control under the modit
Science & Marketi N nge, 7 Dec. 2021; 37 com.cn) No.:
15 same controlling y Wifi module 460.43 460.43 0.05% 5,000.00 -
ng price Bank Dec. 2021 2021-091,
Technology shareholder and purch
accept 2021-092,
Co., Ltd. ultimate controller ased
ance 2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise Com
Aichuang (www.cninfo.
control under the modit Bank
Science & Inverter Marketi N 7 Dec. 2021; 38 com.cn) No.:
16 same controlling y 5,142.93 5,142.93 0.61% 13,000.00 accept -
integrated board ng price Dec. 2021 2021-091,
Technology shareholder and purch ance
2021-092,
Co., Ltd. ultimate controller ased
2021-094,
2021-222
Juchao
Website
Other enterprise Com
Sichuan (www.cninfo.
control under the modit Cash
Aoku Marketi N 7 Dec. 2021; 39 com.cn) No.:
17 same controlling y Power board 1.82 1.82 0.00% 5,000.00 settle -
Technology ng price Dec. 2021 2021-091,
shareholder and purch ment
Co., Ltd. 2021-092,
ultimate controller ased
2021-094,
2021-222
Sichuan
Juchao
Changhong Website
Accep
Electronics Controlling Shuttle Cash (www.cninfo.
t labor Marketi N 7 Dec. 2021; 40
18 shareholder and transportation fee, 38.59 38.59 0.05% 5,000.00 settle - com.cn) No.:
Holding servic ng price Dec. 2021
ultimate controller training fee ment 2021-091,
Group Co., e
2021-092,
Ltd. 2021-094,
45
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
2021-222
Juchao
Sichuan Website
Software usage
Accep (www.cninfo.
Changhong fee, information Cash
Controlling t labor Marketi N 7 Dec. 2021; 41 com.cn) No.:
19 consultation fee, 163.87 163.87 0.20% 5,000.00 settle -
Electric Co., shareholder servic ng price Dec. 2021 2021-091,
inspection and ment
Ltd. e 2021-092,
certification fee
2021-094,
2021-222
Transportation Juchao
Sichuan Website
Other enterprise costs, storage and
Changhong Accep (www.cninfo.
control under the handling charges, Cash
Minsheng t labor Marketi N 7 Dec. 2021; 42 com.cn) No.:
20 same controlling 30,520.11 30,520.11 37.07% 75,000.00 settle -
servic freight and ng price Dec. 2021 2021-091,
Logistics shareholder and ment
e 2021-092,
ultimate controller miscellaneous
Co., Ltd. 2021-094,
charges etc. 2021-222
Juchao
Sichuan Spot Website
Other enterprise
Changhong Accep excha (www.cninfo.
control under the
Mold Plastic t labor commission Marketi N nge, 7 Dec. 2021; 43 com.cn) No.:
21 same controlling 1,131.77 1,131.77 1.37% 5,000.00 -
servic processing fee ng price Bank Dec. 2021 2021-091,
Tech. Co., shareholder and
e accept 2021-092,
Ltd. ultimate controller
ance 2021-094,
2021-222
Sichuan
Juchao
Service Three packages, Website
Other enterprise
Exp. Accep equipment (www.cninfo.
control under the Cash
Appliance t labor repair,miscellane Marketi N 7 Dec. 2021; 44 com.cn) No.:
22 same controlling 10,913.63 10,913.63 13.26% 32,000.00 settle -
servic ous fees, ng price Dec. 2021 2021-091,
Service shareholder and ment
e installation fee 2021-092,
Chain Co., ultimate controller
etc. 2021-094,
Ltd. 2021-222
Sichuan Other enterprise Software usage Juchao
Accep
Hongxin control under the fee, service Cash Website
t labor Marketi N 7 Dec. 2021; 45
23 same controlling 296.28 296.28 0.36% 5,000.00 settle - (www.cninfo.
Software servic supporting fee ng price Dec. 2021
shareholder and ment com.cn) No.:
Co., Ltd. e and information
ultimate controller 2021-091,
46
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
service fee 2021-092,
2021-094,
2021-222
Juchao
Guangdong Website
Other enterprise
Accep Service support (www.cninfo.
Changhong control under the Cash
t labor Marketi N 7 Dec. 2021; 46 com.cn) No.:
24 same controlling fee, network 18.84 18.84 0.02% 5,000.00 settle -
Electronics servic ng price Dec. 2021 2021-091,
shareholder and service fee etc. ment
Co., Ltd. e 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise
Accep Meals, property (www.cninfo.
Jiahong control under the Cash
t labor Marketi N 7 Dec. 2021; 47 com.cn) No.:
25 same controlling management fees 342.76 342.76 0.42% 5,000.00 settle -
Industrial servic ng price Dec. 2021 2021-091,
shareholder and etc. ment
Co., Ltd. e 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise
Changhong Accep (www.cninfo.
control under the Meetings fee, Cash
Internationa t labor Marketi N 7 Dec. 2021; 48 com.cn) No.:
26 same controlling 3.66 3.66 0.00% 5,000.00 settle -
servic accommodation ng price Dec. 2021 2021-091,
l Hotel Co., shareholder and ment
e 2021-092,
Ltd. ultimate controller
2021-094,
2021-222
Dormitory Juchao
Sichuan Website
Other enterprise facility and
Changhong Accep (www.cninfo.
control under the equipment Cash
Property t labor Marketi N 7 Dec. 2021; 49 com.cn) No.:
27 same controlling 5.41 5.41 0.01% 5,000.00 settle -
servic service fees, ng price Dec. 2021 2021-091,
Services shareholder and ment
e property 2021-092,
Co., Ltd. ultimate controller
2021-094,
management fees
2021-222
Sichuan Other enterprise Accep Juchao
Design service Cash
Zhiyijia control under the t labor Marketi N 7 Dec. 2021; 50 Website
28 fee and platform 10.37 10.37 0.01% 5,000.00 settle -
same controlling servic ng price Dec. 2021 (www.cninfo.
Network usage fee ment
shareholder and e com.cn) No.:
47
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Technology ultimate controller 2021-091,
Co., Ltd. 2021-092,
2021-094,
2021-222
Sichuan
Juchao
Changhong Website
Other enterprise
Intelligent Accep (www.cninfo.
control under the Bank
Manufacturi t labor test modification Marketi N 7 Dec. 2021; 51 com.cn) No.:
29 same controlling 7.31 7.31 0.01% 5,000.00 accept -
servic fee ng price Dec. 2021 2021-091,
ng shareholder and ance
e 2021-092,
Technology ultimate controller
2021-094,
Co., Ltd. 2021-222
Juchao
Website
Other enterprise
Sichuan Accep (www.cninfo.
control under the Bank
Changhong t labor commission Marketi N 7 Dec. 2021; 52 com.cn) No.:
30 same controlling 665.53 665.53 0.81% 5,000.00 accept -
Jijia Fine servic processing fee ng price Dec. 2021 2021-091,
shareholder and ance
Co., Ltd. e 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Technology
Website
Other enterprise development
Sichuan Accep (www.cninfo.
control under the service fee, Cash
Qiruike t labor Marketi N 7 Dec. 2021; 53 com.cn) No.:
31 same controlling instrument repair 533.02 533.02 0.65% 5,000.00 settle -
Technology servic ng price Dec. 2021 2021-091,
shareholder and fee, inspection ment
Co., Ltd. e 2021-092,
ultimate controller and certification
2021-094,
fee, etc.
2021-222
Juchao
Sichuan Website
Purch (www.cninfo.
Changhong Electricity, steam, Cash
Controlling ase of Marketi N 7 Dec. 2021; 54 com.cn) No.:
32 water, 1,332.18 1,332.18 0.16% 65,000.00 settle -
Electric Co., shareholder fuel ng price Dec. 2021 2021-091,
compressed air ment
Ltd. power 2021-092,
2021-094,
2021-222
Changhong
Other enterprise Purch Marketi N Cash 7 Dec. 2021; 55 Juchao
33 Compressed air 10.70 10.70 0.00% 48,000.00 -
Huayi control under the ase of ng price settle Dec. 2021 Website
48
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Compressor same controlling fuel ment (www.cninfo.
Co., Ltd. shareholder and power com.cn) No.:
ultimate controller 2021-091,
2021-092,
2021-094,
2021-222
Juchao
Guangdong Website
Other enterprise
Purch Electricity, (www.cninfo.
Changhong control under the Cash
ase of Marketi N 7 Dec. 2021; 56 com.cn) No.:
34 same controlling water, 28.59 28.59 0.00% 10,000.00 settle -
Electronics fuel ng price Dec. 2021 2021-091,
shareholder and compressed air ment
Co., Ltd. power 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Hefei Website
Other enterprise
Changhong Purch (www.cninfo.
control under the Cash
New Energy ase of Electricity fees Marketi N 7 Dec. 2021; 57 com.cn) No.:
35 same controlling 16.35 16.35 0.00% 10,000.00 settle -
fuel ng price Dec. 2021 2021-091,
Technology shareholder and ment
power 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise
Changhong Purch (www.cninfo.
control under the Cash
Property ase of Electricity fees Marketi N 7 Dec. 2021; 58 com.cn) No.:
36 same controlling 1.35 1.35 0.00% 5,000.00 settle -
fuel ng price Dec. 2021 2021-091,
Services shareholder and ment
power 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Hefei Purch (www.cninfo.
control under the Cash
Changhong ase of Electricity, water Marketi N 7 Dec. 2021; 59 com.cn) No.:
37 same controlling 58.03 58.03 0.01% 10,000.00 settle -
Industrial fuel fee ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. power 2021-092,
ultimate controller
2021-094,
2021-222
38 Sichuan Controlling Sales Kitchen and Marketi 23.92 23.92 0.00% 1,500.00 N Spot - 7 Dec. 2021; 60 Juchao
49
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Changhong shareholder of bathroom and ng price excha Dec. 2021 Website
Electric Co., goods small appliances nge, (www.cninfo.
Ltd. Bank com.cn) No.:
accept 2021-091,
ance 2021-092,
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise
Changhong (www.cninfo.
control under the Sales Cash
Mold Plastic Marketi N 7 Dec. 2021; 61 com.cn) No.:
39 same controlling of Plastic parts 43.19 43.19 0.00% 31,000.00 settle -
ng price Dec. 2021 2021-091,
Tech. Co., shareholder and goods ment
2021-092,
Ltd. ultimate controller
2021-094,
2021-222
Juchao
Lejiayi Website
Other enterprise
(www.cninfo.
Chain control under the Sales Air conditioner, Cash
Marketi N 7 Dec. 2021; 62 com.cn) No.:
40 same controlling of water heater and 104.10 104.10 0.01% 5,000.00 settle -
Managemen ng price Dec. 2021 2021-091,
shareholder and goods small appliances ment
t Co., Ltd. 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Sichuan Spot Website
Other enterprise washing
Zhiyijia excha (www.cninfo.
control under the Sales machine,Refriger
Network Marketi N nge, 7 Dec. 2021; 63 com.cn) No.:
41 same controlling of ator,freezer,Air 343,787.59 343,787.59 33.91% 720,000.00 -
ng price Bank Dec. 2021 2021-091,
Technology shareholder and goods conditioner,small
accept 2021-092,
Co., Ltd. ultimate controller appliances
ance 2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise
Changhong (www.cninfo.
control under the Sales Cash
Device Marketi N 7 Dec. 2021; 64 com.cn) No.:
42 same controlling of small appliances 0.11 0.11 0.00% 5,000.00 settle -
ng price Dec. 2021 2021-091,
Technology shareholder and goods ment
2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
50
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Juchao
Sichuan Website
Other enterprise
Changhong (www.cninfo.
control under the Sales Air Cash
Minsheng Marketi N 7 Dec. 2021; 65 com.cn) No.:
43 same controlling of conditioner,Refri 13.97 13.97 0.00% 5,000.00 settle -
ng price Dec. 2021 2021-091,
Logistics shareholder and goods gerator ment
2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Sichuan
Juchao
Service Air Website
Other enterprise
Exp. conditioners,inver (www.cninfo.
control under the Sales Cash
Appliance Marketi N 7 Dec. 2021; 66 com.cn) No.:
44 same controlling of ter integrated 302.53 302.53 0.03% 5,000.00 settle -
ng price Dec. 2021 2021-091,
Service shareholder and goods boards, ment
2021-092,
Chain Co., ultimate controller
components etc. 2021-094,
Ltd. 2021-222
Juchao
Website
Other enterprise
Sichuan (www.cninfo.
control under the Sales Cash
Huafeng Marketi N 7 Dec. 2021; 67 com.cn) No.:
45 same controlling of Air conditioner 35.31 35.31 0.00% 2,500.00 settle -
Technology ng price Dec. 2021 2021-091,
shareholder and goods ment
Co., Ltd. 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Sichuan (www.cninfo.
control under the Sales Cash
Changhong Marketi N 7 Dec. 2021; 68 com.cn) No.:
46 same controlling of Air conditioner 9.72 9.72 0.00% 5,000.00 settle -
Real Estate ng price Dec. 2021 2021-091,
shareholder and goods ment
Co., Ltd. 2021-092,
ultimate controller
2021-094,
2021-222
Hunan Juchao
Other enterprise
Grand-Pro Website
control under the Sales Cash
Marketi N 7 Dec. 2021; 69 (www.cninfo.
47 Intelligent same controlling of Labeling 0.05 0.05 0.00% 48,000.00 settle -
ng price Dec. 2021 com.cn) No.:
Tech. shareholder and goods ment
2021-091,
ultimate controller
Company 2021-092,
51
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
2021-094,
2021-222
Juchao
Website
Other enterprise
Guangdong (www.cninfo.
control under the Sales Cash
Changhong Marketi N 7 Dec. 2021; 70 com.cn) No.:
48 same controlling of small appliances 1.99 1.99 0.00% 5,000.00 settle -
Electronics ng price Dec. 2021 2021-091,
shareholder and goods ment
Co., Ltd. 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Sichuan (www.cninfo.
control under the Sales Cash
Aoku Marketi N 7 Dec. 2021; 71 com.cn) No.:
49 same controlling of Air conditioner 23.01 23.01 0.00% 2,500.00 settle -
Technology ng price Dec. 2021 2021-091,
shareholder and goods ment
Co., Ltd. 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Changhong (www.cninfo.
control under the Sales Cash
Huayi Marketi N 7 Dec. 2021; 72 com.cn) No.:
50 same controlling of Air conditioner 7.26 7.26 0.00% 48,000.00 settle -
Compressor ng price Dec. 2021 2021-091,
shareholder and goods ment
Co., Ltd. 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Guangyuan Other enterprise Air
(www.cninfo.
Changhong control under the Sales conditioner,Kitch Cash
Marketi N 7 Dec. 2021; 73 com.cn) No.:
51 Electronic same controlling of en and 13.79 13.79 0.00% 5,000.00 settle -
ng price Dec. 2021 2021-091,
Technology shareholder and goods bathroom,small ment
2021-092,
Co., Ltd. ultimate controller appliances
2021-094,
2021-222
Other enterprise Juchao
CHANGHO
control under the Sales Cash Website
NG(HK)TR Marketi N 7 Dec. 2021; 74
52 same controlling of Air conditioner 17,413.91 17,413.91 1.72% 130,000.00 settle - (www.cninfo.
ADINGLIM ng price Dec. 2021
shareholder and goods ment com.cn) No.:
ITED
ultimate controller 2021-091,
52
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
2021-092,
2021-094,
2021-222
Juchao
Website
CHANGHO Other enterprise
Refrigerator,freez (www.cninfo.
NGELECT control under the Sales Cash
ers,washing Marketi N 7 Dec. 2021; 75 com.cn) No.:
53 RIC(AUST same controlling of 7,001.05 7,001.05 0.69% 130,000.00 settle -
machine and ng price Dec. 2021 2021-091,
RALIA)PT shareholder and goods ment
accessories 2021-092,
Y.LTD. ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
(www.cninfo.
control under the Sales Cash
Orion.PDP. Marketi N 7 Dec. 2021; 76 com.cn) No.:
54 same controlling of Refrigerator 2,814.00 2,814.00 0.28% 5,000.00 settle -
Co.,ltd ng price Dec. 2021 2021-091,
shareholder and goods ment
2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
(www.cninfo.
Changhong control under the Sales Cash
Marketi N 7 Dec. 2021; 77 com.cn) No.:
55 EuropeElect same controlling of Refrigerator 305.51 305.51 0.03% 10,000.00 settle -
ng price Dec. 2021 2021-091,
rics.r.o shareholder and goods ment
2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
CHANGHO Other enterprise
(www.cninfo.
NGELECT control under the Sales Refrigerator,freez Cash
Marketi N 7 Dec. 2021; 78 com.cn) No.:
56 RICMIDDL same controlling of ers and 446.27 446.27 0.04% 5,000.00 settle -
ng price Dec. 2021 2021-091,
EEASTFZC shareholder and goods accessories ment
2021-092,
O ultimate controller
2021-094,
2021-222
Changhong Other enterprise Refrigerator,freez Juchao
Sales Cash
Internationa control under the ers,Air Marketi N 7 Dec. 2021; 79 Website
57 of 8,390.66 8,390.66 0.83% 35,000.00 settle -
l Holdings same controlling conditioner, ng price Dec. 2021 (www.cninfo.
goods ment
(Hong shareholder and kitchen utensils com.cn) No.:
53
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Kong) Co., ultimate controller 2021-091,
Ltd. 2021-092,
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
(www.cninfo.
Aichuang control under the Sales Kitchen and Cash
Marketi N 7 Dec. 2021; 80 com.cn) No.:
58 Science & same controlling of bathroom and 2.19 2.19 0.00% 2,500.00 settle -
ng price Dec. 2021 2021-091,
Technology shareholder and goods small appliances ment
2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Changhong control under the Cash
ding Labor cost Marketi N 7 Dec. 2021; 81 com.cn) No.:
59 Mold Plastic same controlling 13.32 13.32 0.77% 5,000.00 settle -
servic ng price Dec. 2021 2021-091,
Tech. Co., shareholder and ment
es 2021-092,
Ltd. ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Sichuan Provi (www.cninfo.
control under the Cash
Changhong ding Labor cost Marketi N 7 Dec. 2021; 82 com.cn) No.:
60 same controlling 3.76 3.76 0.22% 5,000.00 settle -
Jijia Fine servic ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. es 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Aichuang control under the Cash
ding Technical service Marketi N 7 Dec. 2021; 83 com.cn) No.:
61 Science & same controlling -78.97 -78.97 -4.56% 2,500.00 settle -
servic fee,Labor cost ng price Dec. 2021 2021-091,
Technology shareholder and ment
es 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Sichuan Other enterprise Provi Cash Juchao
Labor cost Marketi N 7 Dec. 2021; 84
62 Huafeng control under the ding 36.61 36.61 2.11% 2,500.00 settle - Website
ng price Dec. 2021
Technology same controlling servic ment (www.cninfo.
54
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Co., Ltd. shareholder and es com.cn) No.:
ultimate controller 2021-091,
2021-092,
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Zhiyijia control under the Cash
ding Service fee Marketi N 7 Dec. 2021; 85 com.cn) No.:
63 Network same controlling 0.84 0.84 0.05% 5,000.00 settle -
servic ng price Dec. 2021 2021-091,
Technology shareholder and ment
es 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Website
Sichuan Provi (www.cninfo.
Cash
Changhong Controlling ding Marketi N 7 Dec. 2021; 86 com.cn) No.:
64 Labor cost -32.65 -32.65 -1.88% 5,000.00 settle -
Electric Co., shareholder servic ng price Dec. 2021 2021-091,
ment
Ltd. es 2021-092,
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Changhong control under the Cash
ding Technical service Marketi N 7 Dec. 2021; 87 com.cn) No.:
65 Device same controlling 8.01 8.01 0.46% 5,000.00 settle -
servic fee ng price Dec. 2021 2021-091,
Technology shareholder and ment
es 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Changhong Provi (www.cninfo.
control under the Cash
Huayi ding Technical service Marketi N 7 Dec. 2021; 88 com.cn) No.:
66 same controlling 35.54 35.54 2.05% 500.00 settle -
Compressor servic fee ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. es 2021-092,
ultimate controller
2021-094,
2021-222
Sichuan Other enterprise Provi Marketi N Cash 7 Dec. 2021; 89 Juchao
67 Labor cost 17.41 17.41 1.00% 5,000.00 -
Changhong control under the ding ng price settle Dec. 2021 Website
55
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Minsheng same controlling servic ment (www.cninfo.
Logistics shareholder and es com.cn) No.:
Co., Ltd. ultimate controller 2021-091,
2021-092,
2021-094,
2021-222
Juchao
Website
Other enterprise
Hefei Provi (www.cninfo.
control under the Cash
Changhong ding Marketi N 7 Dec. 2021; 90 com.cn) No.:
68 same controlling Labor cost 0.02 0.02 0.00% 5,000.00 settle -
Industrial servic ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. es 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Sichuan
Website
Service Other enterprise
Provi (www.cninfo.
Exp. control under the Cash
ding Marketi N 7 Dec. 2021; 91 com.cn) No.:
69 Appliance same controlling Labor cost 117.25 117.25 6.77% 5,000.00 settle -
servic ng price Dec. 2021 2021-091,
Service shareholder and ment
es 2021-092,
Chain Co., ultimate controller
2021-094,
Ltd.
2021-222
Juchao
Website
Other enterprise
Sichuan Provi (www.cninfo.
control under the Cash
Aoku ding Marketi N 7 Dec. 2021; 92 com.cn) No.:
70 same controlling Labor cost 15.62 15.62 0.90% 2,500.00 settle -
Technology servic ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. es 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Changhong control under the Cash
ding Marketi N 7 Dec. 2021; 93 com.cn) No.:
71 Internationa same controlling Maintenance fees 1.65 1.65 0.10% 2,500.00 settle -
servic ng price Dec. 2021 2021-091,
l Hotel Co., shareholder and ment
es 2021-092,
Ltd. ultimate controller
2021-094,
2021-222
72 Sichuan Other enterprise Provi Labor cost Marketi 0.13 0.13 0.01% 2,500.00 N Cash - 7 Dec. 2021; 94 Juchao
56
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Qiruike control under the ding ng price settle Dec. 2021 Website
Technology same controlling servic ment (www.cninfo.
Co., Ltd. shareholder and es com.cn) No.:
ultimate controller 2021-091,
2021-092,
2021-094,
2021-222
Juchao
Website
Other enterprise
Guangyuan Provi (www.cninfo.
control under the Cash
Hongcheng ding Marketi N 7 Dec. 2021; 95 com.cn) No.:
73 same controlling Labor cost 4.59 4.59 0.26% 2,500.00 settle -
Industrial servic ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. es 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Yuanxin Provi (www.cninfo.
control under the Service fee of Cash
Financial ding Marketi N 7 Dec. 2021; 96 com.cn) No.:
74 same controlling Financial 9.57 9.57 0.55% 5,000.00 settle -
Lease Co., servic ng price Dec. 2021 2021-091,
shareholder and statement ment
Ltd. es 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Changhong control under the Cash
ding Technical service Marketi N 7 Dec. 2021; 97 com.cn) No.:
75 Property same controlling 8.58 8.58 0.50% 2,500.00 settle -
servic fee ng price Dec. 2021 2021-091,
Service Co., shareholder and ment
es 2021-092,
Ltd. ultimate controller
2021-094,
2021-222
Juchao
Sichuan
Website
Changhong Other enterprise
Provi (www.cninfo.
Jiechuang control under the Cash
ding Marketi N 7 Dec. 2021; 98 com.cn) No.:
76 Lithium same controlling Labor cost 2.56 2.56 0.15% 2,500.00 settle -
servic ng price Dec. 2021 2021-091,
Battery shareholder and ment
es 2021-092,
Technology ultimate controller
2021-094,
Co., Ltd.
2021-222
57
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Juchao
Website
Other enterprise
Guangdong Provi (www.cninfo.
control under the Cash
Changhong de Water fee, Marketi N 7 Dec. 2021; 99 com.cn) No.:
77 same controlling 0.28 0.28 0.00% 5,000.00 settle -
Electronics fuel electricity fees ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. power 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Changhong control under the Cash
de Water fee, Marketi N 7 Dec. 2021; 100 com.cn) No.:
78 Minsheng same controlling 2.19 2.19 0.00% 5,000.00 settle -
fuel electricity fees ng price Dec. 2021 2021-091,
Logistics shareholder and ment
power 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Sichuan Provi (www.cninfo.
control under the Cash
Changhong de Water fee, Marketi N 7 Dec. 2021; 101 com.cn) No.:
79 same controlling 7.89 7.89 0.00% 5,000.00 settle -
Jijia Fine fuel electricity fees ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. power 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi (www.cninfo.
Changhong control under the Water fee, Cash
de Marketi N 7 Dec. 2021; 102 com.cn) No.:
80 Mold Plastic same controlling electricity 322.08 322.08 0.03% 5,000.00 settle -
fuel ng price Dec. 2021 2021-091,
Tech. Co., shareholder and fees,steam fee ment
power 2021-092,
Ltd. ultimate controller
2021-094,
2021-222
Juchao
Sichuan Other enterprise Website
Provi
Zhiyijia control under the Cash (www.cninfo.
de Water fee, Marketi N 7 Dec. 2021; 103
81 Network same controlling 3.52 3.52 0.00% 5,000.00 settle - com.cn) No.:
fuel electricity fees ng price Dec. 2021
Technology shareholder and ment 2021-091,
power
Co., Ltd. ultimate controller 2021-092,
2021-094,
58
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
2021-222
Juchao
Sichuan Website
Other enterprise
Changhong Provi (www.cninfo.
control under the Cash
Precision de Water fee, Marketi N 7 Dec. 2021; 104 com.cn) No.:
82 same controlling 0.72 0.72 0.00% 5,000.00 settle -
Electronics fuel electricity fees ng price Dec. 2021 2021-091,
shareholder and ment
Tech. Co., power 2021-092,
ultimate controller
Ltd. 2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise
Provi Water fee, (www.cninfo.
Changhong control under the Cash
de electricity Marketi N 7 Dec. 2021; 105 com.cn) No.:
83 Device same controlling 15.27 15.27 0.00% 5,000.00 settle -
fuel fees,compressed ng price Dec. 2021 2021-091,
Technology shareholder and ment
power air 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Changhong Website
Other enterprise
Internationa Provi (www.cninfo.
control under the Cash
l Holdings de Water fee, Marketi N 7 Dec. 2021; 106 com.cn) No.:
84 same controlling 2.95 2.95 0.00% 5,000.00 settle -
(Hong fuel electricity fees ng price Dec. 2021 2021-091,
shareholder and ment
Kong) Co., power 2021-092,
ultimate controller
Ltd. 2021-094,
2021-222
Juchao
Website
Other enterprise Rent
Guangdong (www.cninfo.
control under the to the Cash
Changhong Marketi N 7 Dec. 2021; 107 com.cn) No.:
85 same controlling relate Lodging house 1.42 1.42 0.02% 4,000.00 settle -
Electronics ng price Dec. 2021 2021-091,
shareholder and d ment
Co., Ltd. 2021-092,
ultimate controller party
2021-094,
2021-222
Juchao
Other enterprise Rent
Hefei Website
control under the to the Rental Cash
Changhong Marketi N 7 Dec. 2021; 108 (www.cninfo.
86 same controlling relate apartment,wareho 30.32 30.32 0.51% 4,000.00 settle -
Industrial ng price Dec. 2021 com.cn) No.:
shareholder and d uses ment
Co., Ltd. 2021-091,
ultimate controller party
2021-092,
59
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise Rent
(www.cninfo.
Aichuang control under the to the Cash
Warehouse for Marketi N 7 Dec. 2021; 109 com.cn) No.:
87 Science & same controlling relate 1.88 1.88 0.03% 2,500.00 settle -
rent ng price Dec. 2021 2021-091,
Technology shareholder and d ment
2021-092,
Co., Ltd. ultimate controller party
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise Rent
(www.cninfo.
Ailian control under the to the Cash
Warehouse for Marketi N 7 Dec. 2021; 110 com.cn) No.:
88 Science & same controlling relate 0.09 0.09 0.00% 2,500.00 settle -
rent ng price Dec. 2021 2021-091,
Technology shareholder and d ment
2021-092,
Co., Ltd. ultimate controller party
2021-094,
2021-222
Juchao
Website
Other enterprise Rent
Sichuan (www.cninfo.
control under the to the Cash
Aoku Warehouse for Marketi N 7 Dec. 2021; 111 com.cn) No.:
89 same controlling relate 0.16 0.16 0.00% 2,500.00 settle -
Technology rent ng price Dec. 2021 2021-091,
shareholder and d ment
Co., Ltd. 2021-092,
ultimate controller party
2021-094,
2021-222
Juchao
Sichuan
Website
Service Other enterprise Rent
(www.cninfo.
Exp. control under the to the Cash
Rental Marketi N 7 Dec. 2021; 112 com.cn) No.:
90 Appliance same controlling relate 11.77 11.77 0.20% 4,000.00 settle -
apartment,office ng price Dec. 2021 2021-091,
Service shareholder and d ment
2021-092,
Chain Co., ultimate controller party
2021-094,
Ltd.
2021-222
Other enterprise Rent Juchao
Sichuan
control under the to the Cash Website
Qiruike Marketi N 7 Dec. 2021; 113
91 same controlling relate Lease of factory 4.73 4.73 0.08% 2,500.00 settle - (www.cninfo.
Technology ng price Dec. 2021
shareholder and d ment com.cn) No.:
Co., Ltd.
ultimate controller party 2021-091,
60
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
2021-092,
2021-094,
2021-222
Juchao
Website
Rent
Sichuan (www.cninfo.
to the Cash
Changhong Controlling Lease of Marketi N 7 Dec. 2021; 114 com.cn) No.:
92 relate 151.16 151.16 2.54% 4,000.00 settle -
Electric Co., shareholder factory,equipment ng price Dec. 2021 2021-091,
d ment
Ltd. 2021-092,
party
2021-094,
2021-222
Juchao
Website
Other enterprise Rent
Sichuan Rental (www.cninfo.
control under the to the Cash
Changhong apartment,wareho Marketi N 7 Dec. 2021; 115 com.cn) No.:
93 same controlling relate 222.83 222.83 3.74% 4,000.00 settle -
Jijia Fine uses,plants,equip ng price Dec. 2021 2021-091,
shareholder and d ment
Co., Ltd. ment 2021-092,
ultimate controller party
2021-094,
2021-222
Juchao
Sichuan Website
Other enterprise Rent
Changhong (www.cninfo.
control under the to the Serviced Cash
Precision Marketi N 7 Dec. 2021; 116 com.cn) No.:
94 same controlling relate apartment, living 8.97 8.97 0.15% 4,000.00 settle -
Electronics ng price Dec. 2021 2021-091,
shareholder and d quarters ment
Tech. Co., 2021-092,
ultimate controller party
Ltd. 2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise Rent
(www.cninfo.
Changhong control under the to the Serviced Cash
Marketi N 7 Dec. 2021; 117 com.cn) No.:
95 Minsheng same controlling relate apartment, office, 14.22 14.22 0.24% 4,000.00 settle -
ng price Dec. 2021 2021-091,
Logistics shareholder and d etc. ment
2021-092,
Co., Ltd. ultimate controller party
2021-094,
2021-222
Sichuan Other enterprise Rent Serviced Juchao
Cash
Changhong control under the to the apartment, Marketi N 7 Dec. 2021; 118 Website
96 433.61 433.61 7.28% 4,000.00 settle -
Mold Plastic same controlling relate warehouse, ng price Dec. 2021 (www.cninfo.
ment
Tech. Co., shareholder and d workshop, com.cn) No.:
61
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Ltd. ultimate controller party equipment and 2021-091,
living quarters 2021-092,
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise Rent
(www.cninfo.
Changhong control under the to the Cash
Marketi N 7 Dec. 2021; 119 com.cn) No.:
97 Device same controlling relate Lease of factory 108.73 108.73 1.83% 4,000.00 settle -
ng price Dec. 2021 2021-091,
Technology shareholder and d ment
2021-092,
Co., Ltd. ultimate controller party
2021-094,
2021-222
Juchao
Website
Sichuan Other enterprise Rent
(www.cninfo.
Zhiyijia control under the to the Cash
Marketi N 7 Dec. 2021; 120 com.cn) No.:
98 Network same controlling relate Rental apartment 9.41 9.41 0.16% 4,000.00 settle -
ng price Dec. 2021 2021-091,
Technology shareholder and d ment
2021-092,
Co., Ltd. ultimate controller party
2021-094,
2021-222
Juchao
Leasi Website
Chengdu Other enterprise
ng (www.cninfo.
Changhong control under the Cash
from Marketi N 7 Dec. 2021; 121 com.cn) No.:
99 Electronic same controlling Leasing office 36.30 36.30 0.61% 4,000.00 settle -
relate ng price Dec. 2021 2021-091,
Technology shareholder and ment
d 2021-092,
Co., Ltd. ultimate controller
party 2021-094,
2021-222
Juchao
Leasi Website
Other enterprise
Guangdong ng (www.cninfo.
control under the Cash
Changhong from Lease of staff Marketi N 7 Dec. 2021; 122 com.cn) No.:
100 same controlling 78.15 78.15 1.31% 4,000.00 settle -
Electronics relate dormitory, plant ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. d 2021-092,
ultimate controller
party 2021-094,
2021-222
Hefei Other enterprise Leasi Cash Juchao
Marketi N 7 Dec. 2021; 123
101 Changhong control under the ng lease of plant 89.37 89.37 1.50% 4,000.00 settle - Website
ng price Dec. 2021
Industrial same controlling from ment (www.cninfo.
62
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Co., Ltd. shareholder and relate com.cn) No.:
ultimate controller d 2021-091,
party 2021-092,
2021-094,
2021-222
Juchao
Leasi Website
Other enterprise
Sichuan ng (www.cninfo.
control under the Cash
Jiahong from Lease of staff Marketi N 7 Dec. 2021; 124 com.cn) No.:
102 same controlling 19.39 19.39 0.33% 5,000.00 settle -
Industrial relate dormitory ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. d 2021-092,
ultimate controller
party 2021-094,
2021-222
Juchao
Leasi Website
Sichuan ng Lease of (www.cninfo.
Cash
Changhong Controlling from Marketi N 7 Dec. 2021; 125 com.cn) No.:
103 laboratory and 181.22 181.22 3.04% 4,000.00 settle -
Electric Co., shareholder relate ng price Dec. 2021 2021-091,
workshop ment
Ltd. d 2021-092,
party 2021-094,
2021-222
Juchao
Sichuan Leasi Website
Changhong ng (www.cninfo.
Controlling Cash
Electronics from Marketi N 7 Dec. 2021; 126 com.cn) No.:
104 shareholder and Lease shop 6.28 6.28 0.11% 5,000.00 settle -
Holding relate ng price Dec. 2021 2021-091,
ultimate controller ment
Group Co., d 2021-092,
Ltd. party 2021-094,
2021-222
Juchao
Leasi Website
Other enterprise
Changhong ng (www.cninfo.
control under the Cash
Huayi from Lease of staff Marketi N 7 Dec. 2021; 127 com.cn) No.:
105 same controlling 4.43 4.43 0.07% 500.00 settle -
Compressor relate dormitory ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. d 2021-092,
ultimate controller
party 2021-094,
2021-222
Sichuan Other enterprise Purch assembly line Marketi Bank 7 Dec. 2021; 128 Juchao
106 48.43 48.43 0.39% 3,000.00 N -
Changhong control under the ase body ng price accept Dec. 2021 Website
63
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Intelligent same controlling and ance (www.cninfo.
shareholder and constr com.cn) No.:
Manufacturi
ultimate controller uction 2021-091,
ng of 2021-092,
Technology fixed 2021-094,
Co., Ltd. assets 2021-222
Purch Juchao
ase Website
Sichuan and (www.cninfo.
Relocation and Cash
Changhong Controlling constr Marketi N 7 Dec. 2021; 129 com.cn) No.:
107 renovation 140.00 140.00 1.14% 1,500.00 settle -
Electric Co., shareholder uction ng price Dec. 2021 2021-091,
equipment ment
Ltd. of 2021-092,
fixed 2021-094,
assets 2021-222
Purch Juchao
ase Knowledge Website
Other enterprise
Sichuan and management, (www.cninfo.
control under the Cash
Hongxin constr integration and Marketi N 7 Dec. 2021; 130 com.cn) No.:
108 same controlling 157.03 157.03 1.27% 1,500.00 settle -
Software uction functional ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. of improvement 2021-092,
ultimate controller
fixed projects 2021-094,
assets 2021-222
Juchao
Website
Sichuan Other enterprise
Purch (www.cninfo.
Zhiyijia control under the Cash
ase of Marketi N 7 Dec. 2021; 131 com.cn) No.:
109 Network same controlling TV 0.84 0.84 0.01% 1,500.00 settle -
fixed ng price Dec. 2021 2021-091,
Technology shareholder and ment
assets 2021-092,
Co., Ltd. ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Guangdong Purch (www.cninfo.
control under the Cash
Changhong ase of Marketi N 7 Dec. 2021; 132 com.cn) No.:
110 same controlling TV 0.06 0.06 0.00% 1,500.00 settle -
Electronics fixed ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. assets 2021-092,
ultimate controller
2021-094,
2021-222
111 Mianyang Other enterprise Purch Plant construction Marketi 45.26 45.26 0.37% 1,500.00 N Cash - 7 Dec. 2021; 133 Juchao
64
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Science & control under the ase ng price settle Dec. 2021 Website
Technology same controlling and ment (www.cninfo.
City Big shareholder and constr com.cn) No.:
Data ultimate controller uction 2021-091,
Technology of 2021-092,
Co., Ltd. fixed 2021-094,
assets 2021-222
Purch Juchao
Sichuan ase Website
Changhong and (www.cninfo.
Controlling Cash
Electronics constr Marketi N 7 Dec. 2021; 134 com.cn) No.:
112 shareholder and Fire upgrades 9.43 9.43 0.08% 5,000.00 settle -
Holding uction ng price Dec. 2021 2021-091,
ultimate controller ment
Group Co., of 2021-092,
Ltd. fixed 2021-094,
assets 2021-222
Juchao
Website
Other enterprise
Sichuan Purch (www.cninfo.
control under the Cash
Qiruike ase of laboratory Marketi N 7 Dec. 2021; 135 com.cn) No.:
113 same controlling 6.56 6.56 0.05% 5,000.00 settle -
Technology fixed equipment ng price Dec. 2021 2021-091,
shareholder and ment
Co., Ltd. assets 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Website
Other enterprise
Sichuan Sale (www.cninfo.
control under the Computers, Cash
Aoku of Marketi N 7 Dec. 2021; 136 com.cn) No.:
114 same controlling monitors, current 12.10 12.10 1.59% 2,500.00 settle -
Technology fixed ng price Dec. 2021 2021-091,
shareholder and probes, etc. ment
Co., Ltd. assets 2021-092,
ultimate controller
2021-094,
2021-222
Juchao
Finan Website
Other enterprise
Yuanxin (www.cninfo.
control under the cing Financing Cash
Financial Marketi N 7 Dec. 2021; 137 com.cn) No.:
115 same controlling 21,168.68 21,168.68 -- 82,000.00 settle -
Lease Co., busine business ng price Dec. 2021 2021-091,
shareholder and ment
Ltd. ss 2021-092,
ultimate controller
2021-094,
2021-222
65
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Total -- -- 574,343.30 -- -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting
fuel and power from Sichuan Changhong and its subsidiary by the Company for year of 2022 was 2590 million yuan at most (tax-excluded),
actually 1,005,125,600 yuan occurred in reporting period.
2. It is estimated that the related transaction amount resulted by purchasing goods (Including compressors, smart vacuum cleaners, etc.) with
Changhong Huayi and its subsidiary by the Company for year of 2022 was 485 million yuan at most (tax-excluded), actually 193,555,600 yuan
occurred in reporting period.
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds
etc. from Sichuan Changhong and its subsidiary by the Company for year of 2022 was 15 million yuan at most (tax-excluded), actually 3,431,900
yuan occurred in reporting period.
4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its
subsidiary by the Company for year of 2022 was 9425 million yuan at most (tax-excluded), actually 3,782,132,100 yuan occurred in reporting
period.
5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for
Report the actual implementation of the daily related transactions which year of 2022 was 40 million yuan at most (tax-excluded), actually 13,774,800 yuan occurred in reporting period.
6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng
were projected about their total amount by types during the reporting
Logistics Co., Ltd. by the Company for year of 2022 was 750 million yuan at most (tax-excluded), actually 305,201,100 yuan occurred in reporting
period (if applicable) period.
7. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance
Service Chain Co., Ltd. by the Company for year of 2022 was 320 million yuan at most actually 109,136,300 yuan occurred in reporting period.
8. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor
service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2022 was 50 million yuan at most (tax-excluded), actually
24,241,900 yuan occurred in reporting period.
9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding
Group Co., Ltd and its subsidiary by the Company for year of 2022 was 75 million yuan at most (tax-excluded), actually 28,842,400 yuan occurred
in reporting period.
10. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing
equipment etc. from Sichuan Changhong Electronics Holding Group Co., Ltd. and its subsidiary by the Company for year of 2022 was 260 million
yuan at most (tax-excluded), actually 66,304,500 yuan occurred in reporting period.
11. It is estimated that the related transaction amount resulted by received the financing lease, commercial factoring and bill financing from
Yuanxin Financial Lease Co., Ltd was 820 million yuan at most, actually 211,686,800 yuan occurred in reporting period.
Reasons for major differences between trading price and market
Not applicable
reference price (if applicable)
66
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
(ii) Related transactions by assets acquisition and sold
□Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period
(iii) Related party transaction of joint foreign investment
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
(iv) Connect of related liability and debt
√ Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period
(v) Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
Maximum Amount for the Period
daily Opening The total Ending
Total deposit
deposit limit Deposit interest balance (In amount Balance (10
Related party Relationship amount for the
(In 10 rate range 10 thousand withdrawn in thousand
Period (10
thousand yuan) the Period (10 yuan)
thousand yuan)
yuan) thousand yuan)
Sichuan Other enterprise control
Changhong under the same
450,000.00 0.42%-4.805% 338,508.69 1,634,044.03 1,642,963.96 329,588.76
Group Finance controlling shareholder
Co., Ltd. and ultimate controller
Credit extension or other financial business
Total amount ( 10 Actual amount ( 10
Related party Relationship Type of business
thousand yuan) thousand yuan)
Sichuan
Changhong Other enterprise control under the same Other financial services -
300,000.00 150,991.30
Group Finance controlling shareholder and ultimate controller note issuance
Co., Ltd.
Sichuan
Changhong Other enterprise control under the same Other financial services -
300,000.00 84,173.89
Group Finance controlling shareholder and ultimate controller note discounting
Co., Ltd.
67
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Note 1: After deliberated and approved by the 27th session of 9th BOD and 3rd extraordinary shareholders general meeting of 2019 held
on 10 September 2019 and 27 September, it is agreed that the company and its related party, Changhong Huayi Compressor Co., Ltd.
(hereinafter referred to as "Changhong Huayi"), respectively, will increase the capital to Changhong Finance Company by 500 million
yuan with its own funds, the total capital increase will not exceed one billion yuan. After capital increased, registered capital of
Changhong Finance Company changed to 2,693,938,365.84 yuan. The Company and Changhong Huayi holds 14.96% equity of
Chonghong Finance Company respectively, and controlling shareholder of the Company -Sichuan Changhong Electric Co., Ltd and its
controlling shareholder Sichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong Finance Company
respectively.
Note 2: After deliberated and approved by the 41st session of 9th BOD and 4thextraordinary shareholders general meeting of 2020 held
on 14 August 2020 and 12 October, it is agreed to continue the financial services cooperation between the Company and Changhong
Finance Company and renew the “Financial Service Agreement” for a period of three years. Changhong Finance Company will provide
a series of financial services such as deposit and loans within scope of operation according to the requirements of Company and its
subsidiaries.
(vi) Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
(vii) Other related party transactions
□ Applicable √ Not applicable
During the reporting period, the company had no other significant related transactions.
XII. Significant contract and implementations
(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
√ Applicable □ Not applicable
Explanation of leasing
Operational leasing of the Company please found more details in “investment real estate”, “fixed assets”, “Right-
of-use assets”, “Lease of related party” and “Rent of related party” in Note of Financial Statement.
68
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period.
□ Applicable √Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period.
(ii) Major guarantee
√ Applicable □ Not applicable
The guarantees provided by the company to the wholly-owned and holding subsidiaries are guarantees for
supporting bank credits generated by its production and operation. The guaranty style is the guarantee. The company
and its subsidiaries did not provide guarantees to subjects outside the scope of consolidated statements. The
company and its holding subsidiaries had no overdue external guarantees, no external guarantees involving litigation,
and no losses due to the award of the guarantee. Up to 30 June 2022, the external guarantees of the Company and
subsidiaries are as follows:
69
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
In 10 thousand yuan
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual date of Actual guarantee l (if Guarantee implemen
Company Guarantee limit Guarantee type e (if for related
disclosure date happening limit applicabl term tation or
guaranteed applicab party
e) not
le)
- - - - - - - - - - -
Total approving external guarantee in report Total actual occurred external
0 0
period (A1) guarantee in report period (A2)
Total actual balance of external
Total approved external guarantee at the end of
0 guarantee at the end of report period 0
report period ( A3)
(A4)
Guarantee between the Company and the subsidiaries
Counter
Collatera Complete
Name of the guarante Guarantee
Related Announcement Actual date of Actual guarantee l (if Guarantee implemen
Company Guarantee limit Guarantee type e (if for related
disclosure date happening limit applicabl term tation or
guaranteed applicab party
e) not
le)
Notice No.: 2020-097,
2020-098, 2020-101 and
2020-107 released on 12 Joint liability
10,000.00 2021-7-8 10,000.00 Y 1-year N N
December 2020 and 30 guaranty
Jiangxi Meiling
December 2020
Electric Appliance N/A
respectively
Co., Ltd.
Notice No.: 2021-091,
2021-092, 2021-096 and
15,000.00 - - - - - - -
2021-109 released on 7
December 2021 and 24
70
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
December 2021
respectively
Notice No.: 2020-097,
Joint liability
2020-098, 2020-101 and 2021-9-24 5,000.00 Y 1-year N N
guaranty
2020-107 released on 12
100,000.00
December 2020 and 30
Joint liability
December 2020 2021-12-7 15,000.00 Y 1-year N N
Sichuan Changhong guaranty
respectively
Air-conditioner Co.,
Notice No.: 2021-091,
Ltd. Joint liability
2021-092, 2021-096 and 2022-3-18 8,000.00 Y 1-year N N
guaranty
2021-109 released on 7
100,000.00
December 2021 and 24
Joint liability
December 2021 2022-4-18 30,000.00 Y 1-year N N
guaranty
respectively
Notice No.: 2020-097, Joint liability
2021-3-31 4,000.00 Y 1-year Y N
2020-098, 2020-101 and guaranty
2020-107 released on 12 Joint liability
30,000.00 2021-9-22 3,000.00 Y 1-year N N
December 2020 and 30 guaranty
Changhong December 2020 Joint liability
2021-10-19 4,000.00 Y 1-year N N
MeilingRidian respectively guaranty
Technology Co., Notice No.: 2021-091,
Ltd. 2021-092, 2021-096 and
2021-109 released on 7 Joint liability
16,000.00 2022-6-6 3,000.00 Y 1-year N N
December 2021 and 24 guaranty
December 2021
respectively
ZhongkeMeiling Notice No.: 2020-097, Joint liability
26,000.00 2021-5-24 5,000.00 Y 1-year N N
Cryogenic 2020-098, 2020-101 and guaranty
71
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Technology Co., 2020-107 released on 12
Ltd. December 2020 and 30 Joint liability
2021-9-26 6,000.00 Y 1-year N N
December 2020 guaranty
respectively
Notice No.: 2021-091,
2021-092, 2021-096 and
2021-109 released on 7
26,000.00 - - - - - - -
December 2021 and 24
December 2021
respectively
Joint liability
2021-3-26 13,000.00 Y 1-year Y N
guaranty
Joint liability
2021-3-29 18,000.00 Y 1-year Y N
guaranty
Joint liability
2021-3-30 20,000.00 Y 1-year Y N
guaranty
Notice No.: 2020-097, Joint liability
2021-4-1 20,000.00 Y 11.5 months Y N
2020-098, 2020-101 and guaranty
2020-107 released on 12 Joint liability
Zhongshan 140,000.00 2021-4-6 9,000.00 Y 1-year Y N
December 2020 and 30 guaranty
Changhong Electric
December 2020 Joint liability
Co., Ltd. 2021-5-25 10,000.00 Y 1-year Y N
respectively guaranty
Joint liability
2021-7-20 5,000.00 Y 1-year N N
guaranty
Joint liability
2021-8-19 5,000.00 Y 1-year N N
guaranty
Joint liability
2021-8-27 15,000.00 Y 1-year N N
guaranty
Notice No.: 2021-091, Joint liability
140,000.00 2022-3-10 2,000.00 Y 1-year N N
2021-092, 2021-096 and guaranty
72
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
2021-109 released on 7 Joint liability
2022-3-28 7,000.00 Y 1-year N N
December 2021 and 24 guaranty
December 2021 Joint liability
2022-4-22 18,000.00 Y 1-year N N
respectively guaranty
Joint liability
2022-5-6 6,000.00 Y 1-year N N
guaranty
Joint liability
2022-6-10 10,000.00 Y 1-year N N
guaranty
Joint liability
2022-6-25 13,000.00 Y 1-year N N
guaranty
Notice No.: 2020-097,
2020-098, 2020-101 and
2020-107 released on 12 Joint liability
50,000.00 2021-3-5 5,000.00 Y 1-year Y N
December 2020 and 30 guaranty
December 2020
Hefei Meiling
respectively
Group Holdings
Notice No.: 2021-091,
Limited
2021-092, 2021-096 and
2021-109 released on 7 Joint liability
40,000.00 2022-4-18 5,000.00 Y 1-year N N
December 2021 and 24 guaranty
December 2021
respectively
Joint liability
2021-7-28 2,000.00 Y 1-year Y N
guaranty
Notice No.: 2021-008,
Hefei Changhong Joint liability
2021-009, 2021-011 and 2021-7-29 5,000.00 Y 1-year N N
Meiling Life guaranty
2021-034 released on 3 35,000.00
Appliances Co., Joint liability
March 2021 and 29 2021-8-30 5,000.00 Y 1-year N N
Ltd. guaranty
April 2021respectively
Joint liability
2021-10-13 2,000.00 Y 11 months N N
guaranty
73
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Joint liability
2021-12-9 4,000.00 Y 1-year N N
guaranty
Notice No.: 2021-091, Joint liability
2022-1-26 3,000.00 Y 1-year N N
2021-092, 2021-096 and guaranty
2021-109 released on 7 Joint liability
35,000.00 2022-3-17 5,000.00 Y 1-year N N
December 2021 and 24 guaranty
December 2021 Joint liability
2022-3-21 5,000.00 Y 5 months N N
respectively guaranty
Notice No.: 2021-091,
2021-092, 2021-096 and
Hefei Meiling
2021-109 released on 7
Nonferrous Metal 3,000.00 - - - - - - -
December 2021 and 24
Products Co., Ltd.
December 2021
respectively
Notice No.: 2022-036,
2022-036, 2022-037 and
Changhong RUBA
2022-049 released on 18 5,955.93note 1 - - - - - - -
Trade Company
May2022 and 30 June
2022 respectively
Total amount of actual occurred
Total amount of approving guarantee for
5,955.93 guarantee for subsidiaries in report 305,000.00
subsidiaries in report period (B1)
period (B2)
Total balance of actual guarantee for
Total amount of approved guarantee for
721,955.93 subsidiaries at the end of reporting 204,000.00
subsidiaries at the end of reporting period (B3)
period (B4)
Guarantee of the subsidiaries for the subsidiaries
Collatera Complete
Name of the Counter Guarantee
Related Announcement Actual date of Actual guarantee l (if Guarantee implemen
Company Guarantee limit Guarantee type guarante for related
disclosure date happening limit applicabl term tation or
guaranteed e (if party
e) not
74
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
applicab
le)
Notice No.: 2021-013,
2021-014, 2021-021 and
Joint liability
2021-034 released on 31 6,000.00 2021-4-30 500 - 11 months Y N
guaranty
March 2021 and 29
Anhui Tuoxing April 2021respectively
Technology Co., Notice No.: 2021-091,
Ltd. 2021-092, 2021-096 and
2021-109 released on 7 Joint liability
5,000.00 2022-6-27 500 - 1-year N N
December 2021 and 24 guaranty
December 2021
respectively
Notice No.: 2021-091,
2021-092, 2021-096 and
Anhui Ling'an
2021-109 released on 7
Medical Equipment 5,000.00 - - - - - - - -
December 2021 and 24
Co., Ltd.
December 2021
respectively
Total amount of actual occurred
Total amount of approving guarantee for
0 guarantee for subsidiaries in report 1,000.00
subsidiaries in report period (C1)
period (C2)
Total balance of actual guarantee for
Total amount of approved guarantee for
10,000.00 subsidiaries at the end of reporting 500.00
subsidiaries at the end of reporting period (C3)
period (C4)
Total amount of guarantee of the Company (total of three above mentioned guarantee)
Total amount of approving guarantee in report Total amount of actual occurred
5,955.93 306,000.00
period (A1+B1+C1) guarantee in report period (A2+B2+C2)
Total amount of approved guarantee at the end Total balance of actual guarantee at the
731,955.93 204,500.00
of report period (A3+B3+C3) end of report period (A4+B4+C4)
75
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 42.20%
Including:
Amount of guarantee for shareholders, actual controller and its related parties (D) 0
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed
173,000.00
70% directly or indirectly (E)
Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) 0
Total amount of the aforesaid three guarantees (D+E+F) 173,000.00
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if
N/A
applicable)
Explanations on external guarantee against regulated procedures (if applicable) N/A
Note 1: In order to unify the currency for totaling, the exchange rate here was converted from the US dollar to the 6.6177 yuan on 30 April 2022. For details, please refer to the announcement No.
2022-037 disclosed by the company.
The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are in normal production and operation,
there are no overdue loans, and the guarantee risks are controllable. As of the end of the reporting period, the effective amount of guarantee provided to the subsidiaries that approved by the
Company amounted to 7,219,559,300 yuan, actually 3,050 million yuan occurred. At the end of the reporting period, the practical guarantee balance amounted to 2,040 million yuan, accounting
for the Company’s latest net assets ratio of 42.20%. As of the end of the reporting period, the effective amount of guarantee provided to the subsidiaries from subsidiary that approved by the
Company amounted to 100 million yuan, actually 10 million yuan occurred. As of 30 June 2022, the actual guarantee balance provided to subsidiaries by subsidiary was 5 million yuan, occupied
0.10% of the latest net assets of the Company.
Explanation on guarantee with composite way: Not applicable
76
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
(iii) Trust financing
√ Applicable □ Not applicable
In 10 thousand yuan
Impairment amount for
Amount for
Type Capital resources Undue balance Overdue amount overdue financial
entrust
management
Bank financing products Own funds 38,000 16,000 0 0
Total 38,000 16,000 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
√ Applicable □ Not applicable
77
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
In 10 thousand yuan
Amou
nt of
reserv
Actu
e for Whet
al
deval her Whethe
Antici colle
Trustee Criter uation appro r has Summary of
Reference pated Actual cted
instituti Trust Produ Sourc ia for of ved entrust the items and
Expiry Capital investment annual incom gains/l gain
on (or ee ct Amount e of Start date fixing withd by finance related query
date purpose rate of e (if osses in s/los
name of type type funds rewar rawin legal plan in index (if
return applic period ses
trustee) d g in proce the applicable)
able) in
the dure future
perio
year(i (Y/N)
d
f
applic
able)
This product is an embedded
Princi
financial derivatives of RMB
pal-
structured deposits, the bank
Hefei guaran Juchao
invests the raised structured
Branch teed Idle Not Not Website(www.c
deposits funds in fixed Agree 1.5%/3.45 60.3
of China Bank with 7,000.00 own 2022-1-11 2022-4-11 applic 60.38 N/A Y applicab ninfo.com.cn)
deposit of the bank, at the ment %/3.55% 8
Everbrig floatin funds able le (Notice No.:
same time, the bank invests it
ht Bank g 2022-003)
in financial derivative
incom
transactions (including but
e
not
Princi This product is a structured
Hefei Idle Not Not Juchao
pal- 2022-4- deposit product, the Agree 1.5%/3.21 23.7
Branch Bank 3,000.00 own 2022-1-12 applic 23.75 N/A Y applicab Website(www.c
guaran 12 derivative product of which ment %/3.42% 5
of funds able le ninfo.com.cn)
teed is linked to the morning
78
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Industri with benchmark price of Shanghai (Notice No.:
al Bank floatin Gold Exchange on the 2022-003)
g observation date.
incom
e
Princi
Hefei
pal- The structured deposit
Luyang
guaran product, the derivative Juchao
Branch
teed Idle products are partially linked Not Not Website(www.c
of Bank 2022-4- Agree 1.5%/3.3
Bank with 1,000.00 own 2022-1-14 to the spot rate published on applic 8.16 8.16 N/A Y applicab ninfo.com.cn)
of 14 ment %/3.5%
floatin funds Bloomberg page “BFIX” at able le (Notice No.:
Hangzh
g 14:00 BST on the 2022-003)
ou Co.,
incom observation day
Ltd.
e
Princi
pal- This product is a structured
Hefei guaran deposit product, the Juchao
Branch teed Idle derivative product of which Not Not Website(www.c
2022-4- Agree 1.5%/3.21
of Bank with 1,000.00 own 2022-1-14 is linked to the morning applic 7.92 7.92 N/A Y applicab ninfo.com.cn)
14 ment %/3.42%
Industri floatin funds benchmark price of Shanghai able le (Notice No.:
al Bank g Gold Exchange on the 2022-004)
incom observation date.
e
Princi Principal of the structured
Zhongsh
pal- deposit is included in the Juchao
an
guaran Idle unified operation and Not Not Website(www.c
Branch 2022-4- Agree 1%/3.7%/ 46.8
Bank teed 5,000.00 own 2022-1-28 management of Guangdong applic 46.85 N/A Y applicab ninfo.com.cn)
of China 28 ment 3.8% 5
with funds Development Bank, able le (Notice No.:
Guangfa
floatin investor’s returns from the 2022-006)
Bank
g structured deposit depend on
79
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Co., incom the performance of gold
Ltd. e during the observation
period
Bank of Communications
operates the funds raised by
structured deposit products
in a unified manner and
manages them in accordance
with the principle of
Princi
Zhongsh separating basic deposits
pal-
an from derivative transactions.
guaran Juchao
Branch The raised principal will be
teed Idle Not Not Website(www.c
of Bank included in the internal fund Agree 1.85%/3.2 42.0
Bank with 5,000.00 own 2022-3-2 2022-6-6 applic 42.08 N/A Y applicab ninfo.com.cn)
of of Bank of Communications ment % 8
floatin funds able le (Notice No.:
Commu for unified operation and
g 2022-009)
nication management, and will be
incom
s included in the payment
e
scope of deposit reserve fund
and deposit insurance. The
embedded derivative part of
products will be linked to the
exchange rate, interest rate,
commodity and index, etc.
Princi This product is an embedded
Hefei pal- financial derivatives of RMB Juchao
Branch guaran Idle structured deposits, the bank Not Not Website(www.c
2022-7- Agree 1.5%/3.45
of China Bank teed 8,000.00 own 2022-4-15 invests the raised structured applic - - N/A Y applicab ninfo.com.cn)
15 ment %/3.55%
Everbrig with funds deposits funds in fixed able le (Notice No.:
ht Bank floatin deposit of the bank, at the 2022-027)
g same time, the bank invests it
80
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
incom in financial derivative
e transactions (including but
not
Hefei
Princi
High
pal-
Tech
guaran The structured deposit Juchao
Zone
teed Idle product, and all or part of the Not Not Website(www.c
Branch 2022-11- Agree 1.05%-
Bank with 2,000.00 own 2022-5-25 interest generated by the applic - - N/A Y applicab ninfo.com.cn)
of 25 ment 3.91%
floatin funds deposit is linked to the CSI able le (Notice No.:
Huaxia
g 500 2022-039)
Bank
incom
Co.,
e
Ltd.
Princi
Hefei pal- The structured deposit
Branch guaran product, the derivative Juchao
of Bank teed Idle products are partially linked Not Not Website(www.c
2022-8- Agree 1.5%/3.04
of Bank with 2,000.00 own 2022-5-25 to the spot rate published on applic - - N/A Y applicab ninfo.com.cn)
26 ment %/3.24%
Hangzh floatin funds Bloomberg page “BFIX” at able le (Notice No.:
ou Co., g 14:00 BST on the 2022-039)
Ltd. incom observation day
e
Hefei Principal of the structured
Princi
Science deposit is included in on-
pal- Juchao
and balance sheet accounting and
guaran Idle Not Not Website(www.c
Technol 2022-11- managed in accordance with Agree 2%/3.5%/
Bank teed 2,000.00 own 2022-5-27 applic - - N/A Y applicab ninfo.com.cn)
ogy 23 the deposit, and included in ment 3.55%
with funds able le (Notice No.:
Sub- the payment range payment
floatin 2022-039)
branch of deposit reserves and
g
of Bank deposit insurance premiums,
81
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
of incom relevant assets are
Donggu e capitalized and pr
an Co.,
Ltd.
Principal of the structured
Zhongsh Princi
deposit is included in the
an Shiqi pal-
unified operation and
Sub- guaran Juchao
management of Guangdong
branch teed Idle Not Not Website(www.c
2022-11- Development Bank, Agree 1.5%/3.25
of China Bank with 2,000.00 own 2022-5-27 applic - - N/A Y applicab ninfo.com.cn)
23 investor’s returns from the ment %/3.3%
Guangfa floatin funds able le (Notice No.:
structured deposit depend on
Bank g 2022-040)
the performance of CSI 500
Co., incom
during the observation
Ltd. e
period
Total 38,000.00 -- -- -- -- -- -- - 189.13 -- - -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
82
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.
XIII. Explanation on other significant events
√ Applicable □ Not applicable
1. The Profit Distribution Plan of 2021 was deliberated and approved by the 16th session of 10th BOD, 13th session
of 10th BOS and Annual General Meeting of 2021, meanwhile, independent director of the Company expressed
their independent approval of the Plan. By focusing on the investor’s interest and long-term development needs,
based on the total share capital on the registration date when the annual equity distribution plan of 2021 is
implemented, distributed 0.5 yuan (tax included) in cash for every 10 shares to whole shareholders, no bonus shares
and no share capital increased from public reserves. After distribution, total share capital of the Company remains
unchanged. The remaining accumulated retain profit of the parent company amounted to 901,324,751.30 yuan, and
the remaining retained profit will carry forward for distribution in later years.
On June 17, 2022, the profit distribution plan 2021 was released by the Company and above mentioned plan was
implemented. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong
Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of
announcement (Announcement No: 2022-012, 2022-013, 2022-015, 2022-033 and 2022-046) on March 31, 2022,
April 29, 2022 and June 17, 2022.
2. After deliberated and approved by the 16th session of 10th BOD and Annual General Meeting of 2021, it agreed
that the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during the
period from 1 July 2022 to 30 June 2023. Balance of trading not exceeding US$ 825 million (mainly including USD,
AUD, EUR and other foreign exchange converted to USD), and the maximum period of delivery of a single business
shall not exceed one year. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong
Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of
announcement (Announcement No. 2022-012, 2022-019 and 2022-033) on 3 March 2022 and 29 April 2022.
3. Since the completion of “Repurchase Plan for Some of the Domestically Listed Foreign Shares (B Share)” on
February 18, 2022 and the shares were cancel dated March 2, 2022. After deliberation and approved by the 16th
session of 10th BOD and Annual General Meeting of 2021, agreed to reduce registered capital of the Company from
1,044,597,881 yuan to 1,029,923,715 yuan, further agreed to make corresponding amendment in the Article of
Association with registered capital, share capital structure concerned in line with the laws. Found more on appointed
media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-012,
2022-020 and 2022-033) on 3 March 2022 and 29 April 2022.
4. After deliberated and approved by the 16th session of 10th BOD, the 13th session of 10th BOD and Annual General
83
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Meeting of 2021, its was agreed that the Company will close the project of “intelligent R&D management platform
construction” under the “intelligent manufacturing construction project” and “intelligent R&D project”. the
45,665,621.17 yuan (subject to the bank balance on the day the fund transferred) fund raised balance up to December
31, 2021 from the above mentioned projects and the balance resulting from the difference between interest income
and fees generated before the cancellation of the special account of raised fund will be permanently replenish the
working capital for daily operation and business development of the Company. Found more on appointed media
“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-012,
2022-013, 2022-022 and 2022-033) on 3 March 2022 and 29 April 2022.
5.After deliberated and approved by the 16th session of 10th BOD. The Company invested 10.45 million yuan for
the technical transformation of front-end production line in Hefei refrigerator base. Newly increased one multi-door
shell forming line to enhance the front-end manufacturing capability in refrigerators, accomplish the cost reduction
and efficiency improvement, strengthen the market competitiveness of the products to meet the production demand
of refrigerator products. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong
Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of
announcement (Announcement No. 2022-012) on 3 March 2022.
6. The resolution of the 16thsession of the 10thBOD and the 2021 annual general meeting of shareholders approved
and agreed that the company and its subsidiaries apply to Industrial Bank Co., Ltd., Hefei Branch for a special credit
line of bill pool of up to 400 million yuan, and applied to Ping An Bank Co., Ltd. Hefei Branch for a special credit
line of bill pool of up to 300 million yuan, and applied to Jiujiang Bank Co., Ltd. Hefei Branch for a special credit
line of bill pool of up to 400 million yuan. The credit period is one year, and the types of credit are mainly used for
the special business of bill pool, and endorsement for pledge is adopted. Found more on appointed media “Securities
Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn)
that the Company disclosed in the form of announcement (Announcement No. 2022-012, 2022-023 and 2022-033)
on 31 March 2022 and 29 April 2022.
7. On April 22, 2022, the Company received a Letter of Notification of Share Reduction from Ms. Li Xia-the
secretary of the BOD of the Company. Due to the need of Li’s own funds, within six months after 15 trading days
from the share reduction plan announced, Ms. Li Xia reduced 138,200 shares of the Company at most (0.0134% of
total share capital of the Company) by way of centralized competitive bidding, shares reduction shall not exceed
25% of the shares held by Ms. Li. On June 6, 2022, the Company received a Letter of Notification of Completion
of the Share Reduction from Ms. Li Xia. As of June 6, 2022, Ms. Li Xia completed the reduction of 138,200 shares
aforesaid through centralized bidding trading on Shenzhen Stock Exchange. Found more on appointed media
“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-032 and
2022-041) on 25 April 2022 and 7 June 2022.
8.In the interest of establishing a diverse shareholder return mechanism, and to thanks the shareholders for their
concern and support for a long period, also, allows shareholders to experience new products and services of the
84
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Company, improve the understanding and recognition of the intrinsic value of the Company, a “Meiling Shareholder
Return Activity” was held by the Company from May 9, 2022 to May 15, 2022. Found more on appointed media
“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-035) on
7 May 2022.
9. After deliberated and approved by the 18th session of 10th BOD and second extraordinary shareholders meeting
of 2022, agreed the Company to provide a domestic guarantee for Changhong RUBA Trading Co., Ltd to apply for
a loan from local banks. Guarantee amounted to $9 million at most, with a period of one year for the operating
capital turnover of Changhong RUBA Trading Company. Meanwhile, Changhong RUBA Trading Company will
provide a corresponding counter-guarantee to the Company’s guarantee with its whole assets. Found more on
appointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and Juchao
Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2022-
036, No.2022-037 and No.2022-044) on 18 May 2022 and 14 June 2022.
10. After deliberated and approved by the 19th session of 10th BOD and second extraordinary shareholders meeting
of 2022, and according to the “Guidelines for Article of Association of the Listed Companies”(Revised in 2022)
from SCRC and relevant provisions of laws and regulations as “Listing Rules of Stocks” from Shenzhen Stock
Exchange, take the actual situation of the Company into consideration, agreed to amend some Clauses of the Article
of Association, “Rules of Procedure for the GM”, “Rules of Procedure of the BOD” and “Rules of Procedure of the
BOS”. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial
Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement
(Announcement No. 2022-042, No.2022-043 and No.2022-049) on 14 June 2022 and 30 June 2022.
11. On June 16, 2022, after the implementation of the company's share structure reform, the thirteenth batch of
tradable shares with sales restrictions was lifted and listed for circulation. There were 4 holders of shares lifted from
sales restrictions this time, and the number of shares lifted from sales restrictions was 1,250,430 shares, accounting
for 0.1214% of the company's total share capital. Found more on appointed media “Securities Times”, “China
Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2022-045) on 15 June 2022.
XIV. Major event of the subsidiary
√ Applicable □ Not applicable
1. After deliberated and approved by the 16th session of 10th BOD, with purpose of fulfilling the corporate social
responsibility, the BOD agreed that subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd endowed the
scholarships to 11 well-known domestic universities in 10 years with 5.65 million yuan at most in total, for
supporting the development of university education and improving the brand reputation as well as the social image
and influences of the Company and its subsidiaries. Found more on appointed media “Securities Times”, “China
85
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Securities Journal”, “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2022-012, No.2022-021 and No.2022-033) on 31
March 2022 and 29 April 2022.
2. After deliberated and approved by the 18th session of 10th BOD, on the basis of strategic planning and business
development needs of the controlling subsidiary- Zhongke Meiling Cryogenic Technology Co., Ltd, twins the trend
of securities market development in China, agreed to proposed a public offering of shares to unspecified qualified
investors under the name of Zhongke Meiling and listing on Beijing Stock Exchange to further improve its
governance standards, enhance the capital strength, expanding influence within the industry and heighten its overall
competitiveness. On June 24, 2022, a “Letter of Acceptance Completion of the Coaching Work of Shenwan
Hongyuan Securities Underwriting Sponsor” issued by Anhui CSRC was received by Zhongke Meiling, the
acceptance of coaching work in aspect of public offering of shares to unspecified qualified investors and listing on
Beijing Stock Exchange was completed. On June 29, 2022, Zhongke Meiling received a “Notification of Acceptance”
(GF2022060060) issued from Beijing Stock Exchange, BSE has formally accepted the application for public
offering of shares to unspecified qualified investors and listing on BSE. On August 5, 2022, Beijing Stock Exchange
approved the application of Zhongke Meiling to publicly issue shares to unspecified qualified investors and list
them. Found more on appointed media “Securities Times”, “China Securities Journal”, “Hong Kong Commercial
Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement
(Announcement No. 2022-036, No.2022-038, No.2022-048 , No.2022-050, No.2022-056, No.2022-057, No.2022-
058 and No.2022-060) on 18 May 2022, 25 June and 30 June 2022.
86
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section VII Changes in Shares and Particular about Shareholders
I. Changes in Share Capital
(i) Changes in Share Capital
Unit: Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
B Public
on reserve
New
us transfer Proportio
Amount Proportion shares Others Subtotal Amount
sh into n
issued
ar share
es capital
I. Restricted shares 8,442,922 0.81% 0 0 0 -1,250,430 -1,250,430 7,192,492 0.70%
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal
1,766,269 0.17% 0 0 0 -625,216 -625,216 1,141,053 0.11%
person’s shares
3. Other domestic
5,409,233 0.52% 0 0 0 -625,214 -625,214 4,784,019 0.47%
shares
Including: Domestic
3,884,551 0.37% 0 0 0 -521,012 -521,012 3,363,539 0.33%
legal person’s shares
Domestic natural
1,524,682 0.15% 0 0 0 -104,202 -104,202 1,420,480 0.14%
person’s shares
4. Foreign shares 1,267,420 0.12% 0 0 0 0 0 1,267,420 0.12%
Including: Foreign legal
0 0.00% 0 0 0 0 0 0 0.00%
person’s shares
Foreign natural
1,267,420 0.12% 0 0 0 0 0 1,267,420 0.12%
person’s shares
II. Unrestricted shares 1,036,154,959 99.19% 0 0 0 -13,423,736 -13,423,736 1,022,731,223 99.30%
1. RMB ordinary shares 874,558,379 83.72% 0 0 0 +1,250,430 +1,250,430 875,808,809 85.04%
2. Domestically listed
161,596,580 15.47% 0 0 0 -14,674,166 -14,674,166 146,922,414 14.26%
foreign shares
3. Overseas listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 1,044,597,881 100.00% 0 0 0 -14,674,166 -14,674,166 1,029,923,715 100.00%
1. Reasons for share changed
√ Applicable □ Not applicable
(1) In order to maintain the company's image in the capital market and effectively protect the rights and interests of
all shareholders, the company repurchased some domestically listed foreign shares (B shares) by means of
centralized bidding transactions, and completed the cancellation procedures of the repurchased shares at the
87
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a total of 14,674,166
shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's total share capital before
cancellation. After the cancellation, the total share capital of the company was reduced from 1,044,597,881 shares
to 1,029,923,715 shares.
(2) On June 16, 2022, after the implementation of the company's share structure reform, the thirteenth batch of
tradable shares with sales restrictions was lifted and listed for circulation. There were 4 holders of shares lifted from
sales restrictions this time, and the number of shares lifted from sales restrictions was 1,250,430 shares, accounting
for 0.1214% of the company's total share capital.
2. Approval of share changed
√ Applicable □ Not applicable
Matters concerned the company’s repurchase of some domestically listed foreign shares (B shares) and the
cancellation of the repurchased shares were reviewed and approved at the 40th session of the ninth board of directors,
the third extraordinary general meeting of shareholders in 2020, the 11th session of the tenth board of directors, the
third extraordinary general meeting of shareholders in 2021, the 16th session of the tenth board of directors, and the
2021 annual general meeting of shareholders of the company which respectively held on July 27, 2020, August 18,
2020, August 24, 2021, September 10, 2021, March 29, 2022 and April 29, 2022.
3. Ownership transfer of share changed
√ Applicable □ Not applicable
The company cancelled the repurchased domestically listed foreign shares (B shares) of 14,674,166 shares and
completed the cancellation procedures of the repurchased shares at Shenzhen Branch of China Securities Depository
and Clearing Co., Ltd. on March 2, 2022.
4. Implementation progress of shares buy-back
√ Applicable □ Not applicable
Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased 14,674,166
shares of the company (B shares) in centralized bidding transactions through the special securities account for
repurchase until February 18, 2022, accounting for 1.4048% of the company's total share capital at that time, the
highest transaction price was HKD 2.36/share, the lowest transaction price was HKD 1.87/share, the average price
was HKD 2.22/share, and the accumulative funds used for share repurchase were HKD 32,558,454.08 (excluding
transaction fees such as stamp duty and commission). During the reporting period, the 14,674,166 domestically
listed foreign shares (B share) repurchased by the Company have been completed the cancellation procedures at
Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022. Approved by the 16th
session of the tenth board of directors of the company and the Annual General Meeting of 2021, it was agreed to
reduce the company's registered capital from 1,044,597,881 yuan to 1,029,923,715 yuan, and agreed to revise the
Articles of Association involving registered capital, share capital structure and other relevant provisions in
accordance with the law. Found more on appointed media Securities Times, China Securities Journal, Hong Kong
88
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Commercial Daily and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of
announcement (Announcement No. 2022-011, No.2022-012, No.2022-020 and No.2022-033) on 4 March 2022, 31
March and 29 April 2022.
5. Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
6. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share
attributable to common shareholders of Company in latest year and period
√ Applicable □ Not applicable
In semi-annual of 2022, the net profit attributable to owners of parent company amounted to 60,375,199.25 yuan,
the equity attributable to shareholder of parent company at end of the Period was 4,845,537,338.97 yuan. Based on
total 1,044,597,881.00 shares capital at beginning of the period, EPS amounted as 0.0578 yuan, net assets value per
share was 4.64 yuan. Based on total 1,029,923,715.00 shares capital at end of the period, EPS amounted as 0.0586
yuan, net assets value per share was 4.70 yuan.
7. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
Unit: Share
Restricted
Opening Shares shares Ending
Shareholders shares released in increased shares Restricted reasons Date for released
restricted Period in restricted
Period
Statutory
Zhang Yong 104,202 104,202 0 0 commitment of the 2022-6-16
stock reform
Statutory
China Life Insurance (Group) Company 416,810 416,810 0 0 commitment of the 2022-6-16
stock reform
Statutory
China People's Insurance Group Co., Ltd. 625,216 625,216 0 0 commitment of the 2022-6-16
stock reform
Magang Community Resident Committee Statutory
of Longgang Integrated Economic 104,202 104,202 0 0 commitment of the 2022-6-16
Development Zone, Hefei stock reform
89
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Total 1,250,430 1,250,430 0 0 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
Total preference shareholders with
Total shareholders at end of the Period 66,228 voting rights recovered at end of 0
reporting period (if applicable)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Information
of shares
Amount of Amount
Amount of pledged,
common of
Proporti Changes in common tagged or
shares held at restricted
Nature of on of report shares held frozen
Full name of Shareholders
shareholder shares the end of common
held period without Stat
reporting shares
restriction e of Am
period held
shar ount
e
State-owned
Sichuan Changhong Electric Co., Ltd. 24.12% 248,457,724 0 0 248,457,724 - -
legal person
Hefei Industry Investment Holding State-owned
4.64% 47,823,401 0 0 47,823,401 - -
(Group) Co., Ltd. legal person
CHANGHONG (HK) TRADING Foreign
2.63% 27,077,797 0 0 27,077,797 - -
LIMITED legal person
Foreign
CAO SHENGCHUN nature 1.43% 14,766,086 0 0 14,766,086 - -
person
Domestic
Caitong Fund- Ningbo Bank-Haitong
non-state-
Xingtai (Anhui) Emerging Industry 1.04% 10,733,452 0 0 10,733,452 - -
owned legal
Investment Fund (Limited Partnership)
person
Domestic
Zhuhai Jin Yi Assets Management Co.,
non-state-
Ltd. - Jin Yi Phase I Private Equity 1.00% 10,347,600 +7,738,500 0 10,347,600 - -
owned legal
Investment Fund
person
Domestic
Xu Aiyun nature 0.97% 9,973,700 +7,648,800 0 9,973,700 - -
person
Domestic
Ma Guobin nature 0.82% 8,465,356 -2,641,144 0 8,465,356 - -
person
Philip Securities (H.K.) Co., Ltd. Foreign 0.61% 6,296,913 0 0 6,296,913 - -
90
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
legal person
Chen Qin Domestic
nature 0.43% 4,462,702 +78,814 0 4,462,702 - -
person
Strategy investors or general legal person becomes top 10 common
Not applicable
shareholders due to rights issued (if applicable)
Among the above shareholders, CHANGHONG (HK) TRADING LIMITED
(hereinafter referred to as Hong Kong Changhong) is the wholly-owned
subsidiary of Sichuan Changhong Electric Co., Ltd.; except the shares of B-
stock the Company directly held by Hong Kong Changhong, 6,296,913 shares
of B-stock are also held through Phillip Securities (Hong Kong) Co., Ltd., the
foregoing shareholders constitute persons of uniform action. There existed no
associated relationship or belong to the concerted actors as specified in the
Measures for the Administration of Information Disclosure of Shareholder
Explanation on associated relationship among the aforesaid Equity Changes of Listed Companies among Sichuan Changhong, Hong Kong
shareholders 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”.
Description of the above shareholders in relation to delegate/entrusted
Not applicable
voting rights and abstention from voting rights.
Special note on the repurchase account among the top 10 shareholders Not applicable
(if applicable)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Amount of common shares held Type of shares
Shareholders’ name
without restriction at Period-end Type Amount
Sichuan Changhong Electric Co., Ltd. 248,457,724 RMB ordinary shares 248,457,724
Hefei Industry Investment Holding (Group) Co., Ltd. 47,823,401 RMB ordinary shares 47,823,401
Domestically listed
CHANGHONG (HK) TRADING LIMITED 27,077,797 27,077,797
foreign shares
Domestically listed
CAO SHENGCHUN 14,766,086 14,766,086
foreign shares
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui)
Emerging Industry Investment Fund (Limited 10,733,452 RMB ordinary shares 10,733,452
Partnership)
Zhuhai Jin Yi Assets Management Co., Ltd. - Jin Yi Phase
10,347,600 RMB ordinary shares 10,347,600
I Private Equity Investment Fund
Xu Aiyun 9,973,700 RMB ordinary shares 9,973,700
91
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Ma Guobin 8,465,356 RMB ordinary shares 8,465,356
Domestically listed
Philip Securities (H.K.) Co., Ltd. 6,296,913 6,296,913
foreign shares
Chen Qin 4,462,702 RMB ordinary shares 4,462,702
Expiation on associated relationship or consistent actors within the top 10 un-lock up
Found more in “Particulars about shares held above 5% by
common shareholders and between top 10 un-lock up common shareholders and top 10
common shareholders or top 10 common shares holding”
common shareholders
As of June 30, 2022, among the top 10 common
shareholders, shareholder Zhuhai Jin Yi Assets Management
Co., Ltd. - Jin Yi Phase I Private Equity Investment Fund
held 9,535,900 shares of the Company through its customer
credit guaranteed securities account and 811,700 shares
through its ordinary securities account, resulting in a total of
Explanation on top ten common shareholders involving margin business (if applicable)
10,347,600 shares of the Company. The shareholder-Ma
Guobin holds 6,221,900 shares of the Company through
customer credit trading secured account of Founder
Securities Co., Ltd., and 2,243,456 shares hold through
common securities account, thus 8,465,356 shares of the
Company are held in total.
Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong-- CHANGHONG
(HK) TRADING LIMITED, holds B-stock of the Company as 33,374,710 shares, among which, 6,296,913 shares are held through
Philip Securities (H.K.) Co., Ltd. by CHANGHONG (HK) TRADING LIMITED
Note 2: In the above table, "Particulars about shares held above 5% by shareholders or top 10 shares holding" is subject to the data on
stock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch
Whether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted
conditions have made the repurchase transactions as agreed during the reporting period.
□Yes √ No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted conditions
have not made the repurchase transactions as agreed during the reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
Number Number Number Number
Shares Number of Shares
of shares of of of
held at shares held at restricted restricte restricted
decreased shares d shares shares
Name Title Working status period- increased in period-
in this granted at granted granted at
begin this period end period- at the period-
period begin period end
(share) (share) (share)
(share) (share) (share) (share)
Wu Dinggang Chairman Currently in 570,500 0 0 570,500 0 0 0
92
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
office
Director, Currently in
Zhong Ming 236,175 0 0 236,175 0 0 0
President office
Yong Currently in
Director 0 0 0 0 0 0 0
Fengshan office
Currently in
Zhao Qilin Director 0 0 0 0 0 0 0
office
Director, Deputy Currently in
Kou Huameng 0 0 0 0 0 0 0
president office
Director, Deputy Currently in
Hu Zhaogui 178,050 0 0 178,050 0 0 0
president office
Independent Currently in
Hong yuanjia 0 0 0 0 0 0 0
director office
Independent Currently in
Mou Wen 0 0 0 0 0 0 0
director office
Independent Currently in
Zhao Gang 0 0 0 0 0 0 0
director office
Chairman of Currently in
Shao Min 0 0 0 0 0 0 0
Supervisory office
Currently in
He Xintan Supervisor 0 0 0 0 0 0 0
office
Currently in
Huang Hong Supervisor 0 0 0 0 0 0 0
office
Currently in
Ji Ge Staff supervisor 0 0 0 0 0 0 0
office
Currently in
Sun Hongying Staff supervisor 0 0 0 0 0 0 0
office
Executive deputy Currently in
Liu Hongwei 1,689,893 0 0 1,689,893 0 0 0
president office
Currently in
Huang Danian Deputy president 356,450 0 0 356,450 0 0 0
office
Currently in
Tang Youdao Deputy president 0 0 0 0 0 0 0
office
CFO (person in Currently in
Pang Haitao 0 0 0 0 0 0 0
charge of finance) office
Secretary of the Currently in
Li Xia 552,800 0 138,200 414,600 0 0 0
Board office
Total -- -- 3,583,868 0 138,200 3,445,668 0 0 0
V. Changes in controlling shareholders or actual controllers
(i) Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
93
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Controlling shareholder stays the same in Period.
(ii) Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
94
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section VIII Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
95
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section IX Corporate Bonds
□ Applicable √ Not applicable
96
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Section X Financial Report
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.
June 30, 2022
In RMB
Item June 30, 2022 January 1, 2022
Current assets:
Monetary funds 6,183,005,095.11 5,938,823,396.21
Settlement provisions
Capital lent
Trading financial assets 208,184,795.23 17,997,086.19
Derivative financial assets
Note receivable 439,419.03 2,216,752.22
Account receivable 2,270,853,232.12 1,440,874,691.28
Receivable financing 1,380,100,294.09 1,808,109,301.56
Accounts paid in advance 28,724,589.92 29,766,797.34
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 101,572,345.96 111,652,635.86
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 1,607,718,382.71 1,356,357,419.80
Contractual assets 2,313,522.40
Assets held for sale
Non-current asset due within one year
Other current assets 93,325,665.28 124,240,934.45
97
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Total current assets 11,876,237,341.85 10,830,039,014.91
Non-current assets:
Loans and payments on behalf
Debt investment 291,305,319.44
Other debt investment
Long-term account receivable
Long-term equity investment 88,915,648.08 86,631,660.53
Investment in other equity instrument
Other non-current financial assets 576,200,641.50 581,980,440.70
Investment real estate 52,191,185.68 53,149,934.45
Fixed assets 2,266,504,611.74 2,303,122,699.92
Construction in progress 103,923,104.08 98,469,862.45
Productive biological asset
Oil and gas asset
Right-of-use assets 40,286,720.53 45,367,918.31
Intangible assets 910,035,679.68 953,403,100.33
Expense on Research and Development 137,625,624.69 87,728,990.86
Goodwill
Long-term expenses to be apportioned 362,898.05
Deferred income tax asset 173,152,065.58 147,488,353.28
Other non-current asset 999,030.66 3,087,780.59
Total non-current asset 4,641,502,529.71 4,360,430,741.42
Total assets 16,517,739,871.56 15,190,469,756.33
Current liabilities:
Short-term loans 1,087,291,446.15 622,874,652.77
Loan from central bank
Capital borrowed
Trading financial liability 38,929,244.41 12,304,272.41
Derivative financial liability
Note payable 4,502,920,235.46 4,839,837,317.78
Account payable 3,832,859,258.27 2,299,103,796.88
Accounts received in advance
Contractual liability 351,317,980.38 515,004,115.23
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 222,392,707.91 247,044,421.56
Taxes payable 149,559,048.33 141,874,861.88
Other account payable 903,778,941.60 751,452,768.00
98
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Including: Interest payable
Dividend payable 19,793,050.41 4,753,764.56
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 30,243,710.95 332,718,478.25
Other current liabilities 22,377,103.22 24,373,759.16
Total current liabilities 11,141,669,676.68 9,786,588,443.92
Non-current liabilities:
Insurance contract reserve
Long-term loans 158,000,000.00 168,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 30,061,422.30 33,225,912.15
Long-term account payable 1,241,464.86 1,337,643.24
Long-term wages payable 8,710,896.43 9,828,300.06
Accrual liability 11,912,507.94 11,363,601.63
Deferred income 163,159,009.25 175,664,038.83
Deferred income tax liabilities 8,889,141.90 9,670,435.45
Other non-current liabilities
Total non-current liabilities 381,974,442.68 409,089,931.36
Total liabilities 11,523,644,119.36 10,195,678,375.28
Owner’s equity:
Share capital 1,029,923,715.00 1,044,597,881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,670,335,732.53 2,682,829,400.26
Less: Inventory shares 26,430,571.38
Other comprehensive income -20,842,082.96 -20,903,270.57
Reasonable reserve
Surplus public reserve 423,111,236.90 423,111,236.90
Provision of general risk
Retained profit 743,008,737.50 734,129,724.00
Total owner’ s equity attributable to parent company 4,845,537,338.97 4,837,334,400.21
Minority interests 148,558,413.23 157,456,980.84
Total owner’ s equity 4,994,095,752.20 4,994,791,381.05
Total liabilities and owner’ s equity 16,517,739,871.56 15,190,469,756.33
99
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
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, 2022 January 1, 2022
Current assets:
Monetary funds 3,266,271,511.03 3,423,276,377.52
Trading financial assets 17,312,173.84 7,200,222.04
Derivative financial assets
Note receivable 330,000.00
Account receivable 1,735,966,866.26 1,582,651,896.25
Receivable financing 966,511,549.26 1,484,609,403.08
Accounts paid in advance 44,903,647.89 48,212,105.70
Other account receivable 38,833,840.97 40,708,614.68
Including: Interest receivable
Dividend receivable
Inventories 364,105,226.52 351,523,851.67
Contractual assets 46,970.75
Assets held for sale
Non-current assets maturing within one year
Other current assets 28,957,697.04
Total current assets 6,433,951,786.52 6,967,470,167.98
Non-current assets:
Debt investment 291,305,319.44
Other debt investment
Long-term receivables
Long-term equity investments 1,882,997,437.73 1,882,557,241.66
Investment in other equity instrument
Other non-current financial assets 576,200,641.50 581,980,440.70
Investment real estate 3,648,311.42 3,752,737.75
Fixed assets 1,171,285,355.31 1,209,058,847.63
Construction in progress 78,324,001.26 50,287,155.16
Productive biological assets
Oil and natural gas assets
Right-of-use assets 17,686,308.69 18,632,705.13
Intangible assets 454,904,294.76 477,739,048.08
100
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Research and development costs 86,047,186.86 44,387,584.10
Goodwill
Long-term deferred expenses
Deferred income tax assets 141,353,431.80 125,174,589.66
Other non-current assets 299,020.00 638,649.57
Total non-current assets 4,704,051,308.77 4,394,208,999.44
Total assets 11,138,003,095.29 11,361,679,167.42
Current liabilities:
Short-term borrowings 1,052,171,543.37 612,863,194.44
Trading financial liability 14,509,627.08 5,766,743.33
Derivative financial liability
Notes payable 1,877,201,607.34 2,409,104,654.05
Account payable 1,485,308,607.13 1,356,405,016.24
Accounts received in advance
Contractual liability 152,733,929.04 238,437,143.59
Wage payable 6,018,076.56 42,679,625.89
Taxes payable 22,888,141.57 20,596,813.11
Other accounts payable 1,078,306,911.70 909,832,533.11
Including: Interest payable
Dividend payable 19,193,050.41 4,153,764.56
Liability held for sale
Non-current liabilities due within one year 22,098,167.21 322,202,348.59
Other current liabilities 6,982,077.34 6,703,328.85
Total current liabilities 5,718,218,688.34 5,924,591,401.20
Non-current liabilities:
Long-term loans 158,000,000.00 168,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 16,523,542.32 17,114,473.86
Long-term account payable
Long term employee compensation payable 7,562,998.28 8,760,963.52
Accrued liabilities 6,135,182.74 7,539,547.19
Deferred income 77,695,276.53 82,658,197.54
Deferred income tax liabilities 5,700,451.84 6,131,087.92
Other non-current liabilities
Total non-current liabilities 271,617,451.71 290,204,270.03
Total liabilities 5,989,836,140.05 6,214,795,671.23
Owners’ equity:
Share capital 1,029,923,715.00 1,044,597,881.00
101
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,740,508,510.57 2,753,002,178.30
Less: Inventory shares 26,430,571.38
Other comprehensive income
Special reserve
Surplus reserve 422,893,071.22 422,893,071.22
Retained profit 954,841,658.45 952,820,937.05
Total owner’s equity 5,148,166,955.24 5,146,883,496.19
Total liabilities and owner’s equity 11,138,003,095.29 11,361,679,167.42
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2022 Semi-annual of 2021
I. Total operating income 10,224,503,551.19 9,602,759,345.29
Including: Operating income 10,224,503,551.19 9,602,759,345.29
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 10,156,306,873.88 9,556,489,547.17
Including: Operating cost 9,061,080,531.06 8,177,231,196.17
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 79,701,444.29 61,077,730.97
Sales expense 666,066,309.98 984,805,928.94
Administrative expense 164,132,141.97 152,957,426.98
R&D expense 248,112,774.54 186,113,254.21
Financial expense -62,786,327.96 -5,695,990.10
Including: Interest expenses 16,913,382.96 37,292,383.25
Interest income 66,581,155.37 62,433,816.96
Add: Other income 48,325,391.81 57,250,100.93
Investment income (Loss is listed with “-”) 13,816,261.75 52,533,705.90
Including: Investment income on affiliated company and joint
8,971,315.55 -16,047,810.77
venture
102
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
The termination of income recognition for financial assets
-10,198,142.54
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 “-”) 3,562,737.04 -9,731,654.29
Loss of credit impairment (Loss is listed with “-”) -50,466,619.13 -15,121,003.89
Losses of devaluation of asset (Loss is listed with “-”) -29,791,822.84 -43,310,366.42
Income from assets disposal (Loss is listed with “-”) 8,358,775.10 -208,978.90
III. Operating profit (Loss is listed with “-”) 62,001,401.04 87,681,601.45
Add: Non-operating income 2,910,887.79 5,862,320.71
Less: Non-operating expense 2,332,960.83 760,592.62
IV. Total profit (Loss is listed with “-”) 62,579,328.00 92,783,329.54
Less: Income tax expense -10,115,573.46 37,086,971.38
V. Net profit (Net loss is listed with “-”) 72,694,901.46 55,696,358.16
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 72,694,901.46 55,696,358.16
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 60,375,199.25 37,157,511.54
2.Minority shareholders’ gains and losses 12,319,702.21 18,538,846.62
VI. Net after-tax of other comprehensive income 161,477.79 -1,257,750.59
Net after-tax of other comprehensive income attributable to owners of
61,187.61 -1,271,363.35
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
61,187.61 -1,271,363.35
subsequently to profit or loss
1.Other comprehensive income under equity method that can
-177,046.32
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 61,187.61 -1,094,317.03
103
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to minority
100,290.18 13,612.76
shareholders
VII. Total comprehensive income 72,856,379.25 54,438,607.57
Total comprehensive income attributable to owners of parent
60,436,386.86 35,886,148.19
Company
Total comprehensive income attributable to minority shareholders 12,419,992.39 18,552,459.38
VIII. Earnings per share:
(i) Basic earnings per share 0.0582 0.0356
(ii) Diluted earnings per share 0.0582 0.0356
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 2022 Semi-annual of 2021
I. Operating income 3,276,506,161.47 3,975,751,904.29
Less: Operating cost 3,060,604,345.52 3,701,614,201.55
Taxes and surcharge 27,794,762.55 21,839,365.11
Sales expenses 80,728,268.23 99,271,533.62
Administration expenses 53,782,990.89 56,254,420.78
R&D expenses 108,366,509.30 72,054,454.73
Financial expenses -22,635,899.49 -4,429,587.19
Including: Interest expenses 16,599,488.01 29,845,405.90
Interest income 36,123,851.00 39,962,405.83
Add: Other income 21,184,281.25 36,911,268.50
Investment income (Loss is listed with “-”) 47,530,171.27 37,411,973.74
Including: Investment income on affiliated Company and joint
5,509,596.07 -15,045,065.49
venture
The termination of income recognition for financial assets
-1,663,033.71
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 “-”) 1,369,068.05 -21,631,996.66
Loss of credit impairment (Loss is listed with “-”) -7,829,056.61 -528,447.83
104
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Losses of devaluation of asset (Loss is listed with “-”) -1,325,668.27 -3,955,719.18
Income on disposal of assets (Loss is listed with “-”) 8,344,824.89 -82,639.64
II. Operating profit (Loss is listed with “-”) 37,138,805.05 77,271,954.62
Add: Non-operating income 857,194.10 2,299,511.52
Less: Non-operating expense 1,088,570.22 288,232.95
III. Total Profit (Loss is listed with “-”) 36,907,428.93 79,283,233.19
Less: Income tax -16,609,478.22 15,578,001.89
IV. Net profit (Net loss is listed with “-”) 53,516,907.15 63,705,231.30
(i) continuous operating net profit (net loss listed with ‘-”) 53,516,907.15 63,705,231.30
(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(i) Other comprehensive income items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined benefit plans that re-measured
2.Other comprehensive income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of investment in other equity instrument
4.Fair value change of enterprise's credit risk
5. Other
(ii) Other comprehensive income items which will be reclassified
subsequently to profit or loss
1.Other comprehensive income under equity method that can
transfer to gain/loss
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 53,516,907.15 63,705,231.30
VII. Earnings per share:
(i) Basic earnings per share 0.0516 0.0610
(ii) Diluted earnings per share 0.0516 0.0610
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2022 Semi-annual of 2021
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor 10,312,619,575.60 8,512,320,086.90
105
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
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
Write-back of tax received 379,915,276.10 316,502,790.54
Other cash received concerning operating activities 72,807,336.47 79,642,427.61
Subtotal of cash inflow arising from operating activities 10,765,342,188.17 8,908,465,305.05
Cash paid for purchasing commodities and receiving labor
8,685,143,427.78 7,728,511,418.75
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 workers 859,700,605.67 860,117,506.67
Taxes paid 254,144,466.19 145,836,080.82
Other cash paid concerning operating activities 391,300,471.18 762,496,415.63
Subtotal of cash outflow arising from operating activities 10,190,288,970.82 9,496,961,421.87
Net cash flows arising from operating activities 575,053,217.35 -588,496,116.82
II. Cash flows arising from investing activities:
Cash received from recovering investment 221,539,824.00 700,000,000.00
Cash received from investment income 17,907,264.72 6,856,855.12
Net cash received from disposal of fixed, intangible and other
15,074,662.60 1,095,433.16
long-term assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 65,647,218.13 138,387,471.00
Subtotal of cash inflow from investing activities 320,168,969.45 846,339,759.28
Cash paid for purchasing fixed, intangible and other long-term
132,916,669.27 125,772,890.37
assets
Cash paid for investment 1,024,040,000.00 1,420,000,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
106
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Other cash paid concerning investing activities 7,635,033.86 47,506.93
Subtotal of cash outflow from investing activities 1,164,591,703.13 1,545,820,397.30
Net cash flows arising from investing activities -844,422,733.68 -699,480,638.02
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 647,040,918.37 934,661,487.16
Other cash received concerning financing activities 84,181.37 4,675,857.30
Subtotal of cash inflow from financing activities 647,125,099.74 954,337,344.46
Cash paid for settling debts 490,000,000.00 1,232,876,410.00
Cash paid for dividend and profit distributing or interest paying 76,995,651.40 66,120,511.52
Including: Dividend and profit of minority shareholder paid by
21,318,560.00 1,598,892.00
subsidiaries
Other cash paid concerning financing activities 432,350,094.27 11,341,697.18
Subtotal of cash outflow from financing activities 999,345,745.67 1,310,338,618.70
Net cash flows arising from financing activities -352,220,645.93 -356,001,274.24
IV. Influence on cash and cash equivalents due to fluctuation in
19,041,476.23 -14,000,285.27
exchange rate
V. Net increase of cash and cash equivalents -602,548,686.03 -1,657,978,314.35
Add: Balance of cash and cash equivalents at the period -begin 5,840,194,931.57 6,425,529,815.10
VI. Balance of cash and cash equivalents at the period -end 5,237,646,245.54 4,767,551,500.75
6. Cash Flow Statement of Parent Company
In RMB
Item Semi-annual of 2022 Semi-annual of 2021
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 3,474,091,634.50 3,289,172,496.97
Write-back of tax received 130,797,515.16 161,887,225.42
Other cash received concerning operating activities 26,282,682.89 52,318,868.30
Subtotal of cash inflow arising from operating activities 3,631,171,832.55 3,503,378,590.69
Cash paid for purchasing commodities and receiving labor service 3,359,375,348.84 3,656,146,099.06
Cash paid to/for staff and workers 238,053,008.99 234,676,912.75
Taxes paid 27,088,361.68 26,688,550.76
Other cash paid concerning operating activities 113,679,202.41 313,451,006.32
Subtotal of cash outflow arising from operating activities 3,738,195,921.92 4,230,962,568.89
Net cash flows arising from operating activities -107,024,089.37 -727,583,978.20
II. Cash flows arising from investing activities:
Cash received from recovering investment 1,539,824.00 700,000,000.00
Cash received from investment income 51,118,076.00 7,992,927.12
107
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Net cash received from disposal of fixed, intangible and other long-term
15,055,871.00 867,706.09
assets
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 36,717,526.66 94,536,857.03
Subtotal of cash inflow from investing activities 104,431,297.66 803,397,490.24
Cash paid for purchasing fixed, intangible and other long-term assets 94,314,583.83 71,849,222.83
Cash paid for investment 440,000,000.00 1,455,000,000.00
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 2,906,095.09 102,662.47
Subtotal of cash outflow from investing activities 537,220,678.92 1,526,951,885.30
Net cash flows arising from investing activities -432,789,381.26 -723,554,395.06
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 612,040,918.37 924,661,487.16
Other cash received concerning financing activities 182,953,531.16 170,670,545.80
Subtotal of cash inflow from financing activities 794,994,449.53 1,095,332,032.96
Cash paid for settling debts 480,000,000.00 1,149,699,750.00
Cash paid for dividend and profit distributing or interest paying 55,402,489.41 63,099,086.76
Other cash paid concerning financing activities 46,535,119.44 146,209,276.30
Subtotal of cash outflow from financing activities 581,937,608.85 1,359,008,113.06
Net cash flows arising from financing activities 213,056,840.68 -263,676,080.10
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate 7,291,862.96 -5,782,949.41
V. Net increase of cash and cash equivalents -319,464,766.99 -1,720,597,402.77
Add: Balance of cash and cash equivalents at the period -begin 3,414,961,989.34 4,597,503,833.78
VI. Balance of cash and cash equivalents at the period -end 3,095,497,222.35 2,876,906,431.01
108
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
Semi-annual of 2022
Owners’ equity attributable to the parent Company
Other
equity
instrument Pr
Pe Re ovi
rp as sio
etu on n
Item Pr Other Ot Minority Total owners’
al Less: Inventory abl of
Share capital efe Capital reserve comprehensive Surplus reserve Retained profit he Subtotal interests equity
ca Ot shares e ge
rre income r
pit he res ner
d
al r er al
sto
se ve ris
ck
cu k
riti
es
I. The ending balance of
1,044,597,881.00 2,682,829,400.26 26,430,571.38 -20,903,270.57 423,111,236.90 734,129,724.00 4,837,334,400.21 157,456,980.84 4,994,791,381.05
the previous year
Add: Changes of
accounting policy
Error correction of the
last period
Enterprise combine
under the same control
Other
109
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
II. The beginning
balance of the current 1,044,597,881.00 2,682,829,400.26 26,430,571.38 -20,903,270.57 423,111,236.90 734,129,724.00 4,837,334,400.21 157,456,980.84 4,994,791,381.05
year
III. Increase/ Decrease
in the period (Decrease -14,674,166.00 -12,493,667.73 -26,430,571.38 61,187.61 8,879,013.50 8,202,938.76 -8,898,567.61 -695,628.85
is listed with “-”)
(i) Total comprehensive
61,187.61 60,375,199.25 60,436,386.86 12,419,992.39 72,856,379.25
income
(ii) Owners’ devoted and
-14,674,166.00 -12,493,667.73 -26,430,571.38 -737,262.35 -737,262.35
decreased capital
1.Common shares
-14,674,166.00 -12,493,667.73 -26,430,571.38 -737,262.35 -737,262.35
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 -51,496,185.75 -51,496,185.75 -21,318,560.00 -72,814,745.75
1. Withdrawal of surplus
reserves
2. Withdrawal of general
risk provisions
3. Distribution for
-51,496,185.75 -51,496,185.75 -21,318,560.00 -72,814,745.75
owners (or shareholders)
4. Other
(iv) Carrying forward
internal owners’ equity
1. Capital reserves
110
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
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
IV. Balance at the end of
1,029,923,715.00 2,670,335,732.53 -20,842,082.96 423,111,236.90 743,008,737.50 4,845,537,338.97 148,558,413.23 4,994,095,752.20
the period
Last Period
In RMB
Semi-annual of 2021
Owners’ equity attributable to the parent Company
Item Other Minority Total owners’
Less: Other Reas Prov Ot
Share capital equity Capital reserve Surplus reserve Retained profit Subtotal interests equity
Inventory comprehensive onab ision he
instrument
111
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Pe shares income le of r
rp reser gene
etu ve ral
Pr
al risk
efe
ca Ot
rre
pit he
d
al r
sto
se
ck
cu
riti
es
I. The ending balance
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
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
balance of the current 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
year
III. Increase/ Decrease
in the period
-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
(Decrease is listed
with “-”)
(i) Total
-1,271,363.35 37,157,511.54 35,886,148.19 18,552,459.38 54,438,607.57
comprehensive
112
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
income
(ii) Owners’ devoted
-3,735.20 7,029,141.10 -7,032,876.30 15,000,000.00 7,967,123.70
and decreased capital
1.Common shares
invested by -3,735.20 7,029,141.10 -7,032,876.30 15,000,000.00 7,967,123.70
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 risk provisions
3. Distribution for
owners (or -51,776,420.60 -51,776,420.60 -1,598,892.00 -53,375,312.60
shareholders)
4. Other
(iv) Carrying forward
internal owners’
equity
1. Capital reserves
conversed to capital
(share capital)
113
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
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
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
of the period
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
Semi-annual of 2022
Item
Share capital Other Capital reserve Less: Other Reasonabl Surplus reserve Retained profit Othe Total owners’
114
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
equity instrument Inventory comprehensive e reserve r equity
Perpetua shares income
Preferre l capital
Other
d stock securitie
s
I. The ending balance of the
1,044,597,881.00 2,753,002,178.30 26,430,571.38 422,893,071.22 952,820,937.05 5,146,883,496.19
previous year
Add: Changes of
accounting policy
Error correction of the
last period
Other
II. The beginning balance of
1,044,597,881.00 2,753,002,178.30 26,430,571.38 422,893,071.22 952,820,937.05 5,146,883,496.19
the current year
III. Increase/ Decrease in the
period (Decrease is listed -14,674,166.00 -12,493,667.73 -26,430,571.38 2,020,721.40 1,283,459.05
with “-”)
(i) Total comprehensive
53,516,907.15 53,516,907.15
income
(ii) Owners’ devoted and
-14,674,166.00 -12,493,667.73 -26,430,571.38 -737,262.35
decreased capital
1.Common shares invested by
-14,674,166.00 -12,493,667.73 -26,430,571.38 -737,262.35
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 -51,496,185.75 -51,496,185.75
115
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
1. Withdrawal of surplus
reserves
2. Distribution for owners (or
-51,496,185.75 -51,496,185.75
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
IV. Balance at the end of the
1,029,923,715.00 2,740,508,510.57 422,893,071.22 954,841,658.45 5,148,166,955.24
period
Last period
In RMB
116
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
Semi-annual of 2021
Other
equity instrument Less:
Item Other
Perpetua Reasonabl Othe Total owners’
Share capital Capital reserve Inventory comprehensive Surplus reserve Retained profit
Preferre l capital e reserve r equity
Other shares income
d stock securitie
s
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
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
of the current year
III. Increase/ Decrease in
the period (Decrease is -3,735.20 7,029,141.10 11,928,810.70 4,895,934.40
listed with “-”)
(i) Total comprehensive
63,705,231.30 63,705,231.30
income
(ii) Owners’ devoted and
-3,735.20 7,029,141.10 -7,032,876.30
decreased capital
1.Common shares invested
-3,735.20 7,029,141.10 -7,032,876.30
by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with share-
based payment
117
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
4. Other
(iii) Profit distribution -51,776,420.60 -51,776,420.60
1. Withdrawal of surplus
reserves
2. Distribution for owners
-51,776,420.60 -51,776,420.60
(or 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
118
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
(vi) Others
IV. Balance at the end of
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
the period
119
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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
120
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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.
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 RMB0.5 (tax included) plus
two shares for every ten shares to all shareholders capitalized from capital reserve, based on the total share
capital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company upon
implementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares,
and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)
No.093.
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 4.70
yuan 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
121
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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).
Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased
14,674,166 shares of the company (B shares) in centralized bidding transactions through the special securities
account for repurchase until February 18, 2022, and completed the cancellation procedures of the repurchased
shares at the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a total
of 14,674,166 shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's total
share capital before cancellation. After the cancellation, the total share capital of the company was reduced
from 1,044,597,881 shares to 1,029,923,715 shares.
Ended as June 30, 2022, total share capital of the Company amounting to 1,029,923,715 shares with ordinary
shares in full. Among which, 881,733,881 shares of A-share accounting 85.61% in total shares while B-share
with 148,189,834 shares accounting 14.39% in total shares. Specific capital structure is as follows:
Type of stock Quantity Proportion
(I)Restricted shares 7,192,492 0.70%
1. State-owned shares
2. State-owned legal person’s shares 1,141,053 0.11%
3. Other domestic shares 4,784,019 0.46%
Including: Domestic legal person’s
3,363,539 0.33%
shares
Domestic natural person’s
1,420,480 0.14%
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 1,022,731,223 99.30%
1. RMB Ordinary shares 875,808,809 85.04%
2. Domestically listed foreign shares 146,922,414 14.27%
3. Overseas listed foreign shares
4. Others
Total shares 1,029,923,715 100.00%
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): 1,029,923,715 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
122
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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)
II. Scope of consolidated financial statement
In the reporting period, the consolidated financial statements of the Company cover 26 subsidiaries, including
Sichuan Changhong Air-conditioner Co., Ltd, Zhongshan Changhong Electric Co., Ltd. and Zhongke Meiling
Cryogenic Technology Co., Ltd, and the rest. Compared with the previous year, one subsidiary Jinan Xiangyou
Electric Appliances Marketing Co., Ltd was decreased in the consolidation scope for liquidation. The
Zhengzhou Meiling Electric Appliances Marketing Co., Ltd was decreased for mergers & acquisition.
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
123
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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
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.
124
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 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.
125
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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. 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
126
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 cashon hand and deposits that can be readily with
drawn 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.
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
127
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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. 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-
128
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 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,
129
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 (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,
130
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 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.
131
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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
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
recognizedthe 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
132
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 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
133
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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.
(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
134
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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
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
135
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 whichthe 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 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
136
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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:
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.
137
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 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.
138
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 borrowing.
Capitalization rate is determined according to weighted average interest rate of common borrowing.
19. Right-of-use assets
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 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.
When the Company becomes the lessee of the lease contract, 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.
139
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
20. Intangible assets
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.
140
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 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. Long-term deferred expenses
The company's long-term deferred expenses refer to the expenses that have been paid, but should be borne
by the current period and future periods with an amortization period of more than one year (excluding one
year), and these expenses are amortized evenly during the benefit period. If the long-term deferred
expense item cannot benefit the future accounting period, all the amortized value of the item that has not
been amortized will be transferred into the current profit and loss.
24. 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
141
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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.
25. 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.
26. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
employees or compensation to the termination of employment relationship such as short-term wages, post-
employment benefits, compensation for the termination of employment relationship and other long-term
employee welfare.
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
142
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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.
27.Lease liability
When the Company becomes the lessee of the lease contract, it is entitled to obtain almost all economic benefits
arising from the use of the identified assets during the period of use, and also has the right to recognize the
lease liabilities of the leased assets at the present value of the outstanding lease payments after deducting the
lease incentive (except for short-term leases for which simplified treatment is selected and leases of low-value
assets) when directing the use of the identified assets during the period of use.
28.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.
29. Revenue
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 recognizedwhen the
customer obtains control of the relevant goods or services.
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
143
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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;
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.
144
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
30. 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.
31. 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 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.
145
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
32.Lease
When the Company becomes the lessee of the lease contract, has the right to obtain almost all the economic
benefits arising from the use of the identified assets during the period of use, and has the right to lead the use
of the identified assets during the period of use, the present value of unpaid lease payments of the lease assets
after deducting lease incentives (except for short-term leases and leases of low-value assets for which
simplified treatment is selected) is recognized as a lease liability, and a right-of-use asset is recognized based
on the sum of the present value of the lease liability, prepaid rent, and initial direct costs, and depreciation and
interest expenses are recognized separately.
When the Company becomes the lessee of the lease contract, for short-term leases without purchase options
within one year and lease contracts with a value of less than 40,000 yuan (excluding sublease or expected
sublease assets), choose simplified treatment, and include in the related asset cost or current profit and loss
according to the straight-line method during the lease period.
When the Company becomes the lessor of a lease contract, the lease is divided into operating lease and finance
lease on the start date of lease. A finance lease is a lease that transfers substantially all the risks and rewards
associated with ownership of an asset. An operating lease refers to a lease other than finance leases. The rent
of an operating lease is recognized as income on a straight-line basis during the lease term. For an finance lease,
the net investment in the lease is regarded as the entry value of the finance lease receivables, and the net
investment in the lease is the sum of the unguaranteed residual value and the present value of the lease receipts
that have not been received on the start date of the lease term.
There are both leasing and non-leasing businesses in the contract and can be split, and the leasing business is
financially accounted according to the lease standards. There are both leasing and non-leasing businesses in
the contract and cannot be split, and the entire contract is included in the lease business for financial accounting
according to the lease standards.
The lease change needs to be judged whether it can be recognized as a single leasing business, and it needs to
be recognized separately if it meets the recognition conditions of a single lease; if it does not meet the
recognition of a single leasing business, or there is a major event or change within the controllable range of the
lessee, re-evaluate and measure the present value of lease liabilities, and adjust the book value of the right-of-
use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liability
still needs to be further reduced, the lessee shall include the remaining amount in the corresponding expenses
for the current period.
33. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions as
146
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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
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
147
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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.
34. 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 separate
major line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a
view to resale.
148
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
35. 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.
36. 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.
37. 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 produced minus the estimated
cost to be incurred at the time of completion, the estimated selling expenses and relevant taxes.
149
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(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.
150
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
If obvious change is found, the Company will adjust the projected liabilities according to the latest parameters
so as to reflect the best estimation.
38. 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.
39. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy: N/A
(2) Change of significant accounting estimates: N/A
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
151
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Tax (expenses) Tax (expenses) base Tax (expenses) rate
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:
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%
Hebei Hongmao Daily Appliance Technology Co., Ltd. 15%
Anhui Tuoxing Technology Co., Ltd. 20%
Guangzhou Changhong Trading Co., Ltd. 20%
Anhui Ling'an 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
152
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 October 2021, 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 years term.
(7) The subsidiary 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 18 September 2021, 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.
153
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(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 Hebei Hongmao Daily Appliance Technology Co., Ltd. has passed the qualification of
high-tech enterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payroll
technology enterprise for three years term.
(12) The subsidiary Anhui Tuoxing Technology Co., Ltd., Anhui Ling’an 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) and “Notice on Further Implementation
of Preferential Income Tax Policies for Small & Micro Enterprises (No.: 13 of 2022)” 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%, valid until December 31, 2022; while the part
of annual taxable income exceeds one million yuan but not exceeding three million yuan is included in taxable
income by 25% after a reduction, and corporate income tax is paid at a tax rate of 20%, which is valid until
December 31, 2024.
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, 2022; “period-end” refers to Jun. 30, 2022; “Current Period” refers to Jan. 1 to Jun. 30, 2022;
“the last period” refers to Jan. 1 to Jun. 30, 2021; the currency is RMB.
1. Monetary fund
Item Ending balance Opening balance
Cash 31,633.86 28,447.21
Bank deposit 5,236,987,879.70 5,121,110,089.59
Other monetary fund 932,537,330.83 805,215,921.34
Interest receivable on deposit 13,448,250.72 12,468,938.07
Total 6,183,005,095.11 5,938,823,396.21
Including: total amount deposited in overseas 6,255,478.31 8,156,154.33
154
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance
Total use of restricted funds 931,910,598.85 86,159,526.57
Other monetary fund:
Item Ending balance Opening balance
Cash deposit 544,756,104.36 776,959,862.25
Time deposit 354,040,000.00
Litigation Freeze 32,103,675.00 6,603,675.00
Co-managed account funds 1,010,819.49 504,702.66
Account of foreign currency for verification 397,936.85
Union Pay online 228,412.93 546,234.06
Taobao account 74,572.96
B share account payment 382.20 20,526,874.41
Total 1,069,654,408.78 805,215,921.34
Those not included in cash and cash equivalent are: balance of deposit for bank acceptance bill 543,272,065.16 yuan, L/C deposit
of 1,484,039.20 yuan and time deposit of 354,040,000.00 yuan. Bank deposit 32,103,675.00 yuan frozen due to the litigation,
balance of 1,010,819.49 yuan that have use restriction in condominium account and interest receivable on deposit 13,448,250.72
yuan. The remaining Monetary funds are treated as cash and cash equivalents.
2. Trading financial assets
Item Ending balance Opening balance
Financial assets measured at fair value and whose changes are included
208,184,795.23 17,997,086.19
in current gains/losses
Including: Derivative financial assets 47,475,394.08 17,997,086.19
Principal and interest of wealth management products 160,709,401.15
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 439,419.03 2,216,752.22
Total 439,419.03 2,216,752.22
Less: bad debt provision
Book value 439,419.03 2,216,752.22
(2) No notes endorsement or discount and undue on balance sheet date
155
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(3) Notes transfer to account receivable due for failure implementation by drawer at period-end
Item Amount of accounts receivable transferred at period-end
Bank acceptance 300,000.00
Trade acceptance 102,470,414.97
Total 102,770,414.97
(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
439,419.03 100 439,419.03
accrual on single item
Including: bank acceptance 439,419.03 100 439,419.03
Total 439,419.03 100 439,419.03
(Continued)
Opening balance
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision
2,216,752.22 100.00 2,216,752.22
accrual on single item
Including: bank acceptance 2,216,752.22 100.00 2,216,752.22
Total 2,216,752.22 100.00 2,216,752.22
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
439,419.03
acceptance
Total 439,419.03 — —
(Continued)
Opening balance
Name Bad debt Provision ratio
Book balance Provision reason
provision (%)
Bank acceptance Minimal risk, holding maturity
2,216,752.22
acceptance
Total 2,216,752.22 — —
156
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(5) No bad debt provision of note receivable that has been accrued, withdrawn, and reversed this period
(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
Ratio Book value
Amount Ratio (%) Amount
(%)
Account receivable that withdrawal
bad debt provision by single item 1,042,626,200.81 43.08 29,155,889.89 2.80 1,013,470,310.92
Including: current payment with related
party 1,017,575,253.24 42.05 6,982,193.83 0.69 1,010,593,059.41
Account receivable with letter of
credit 1,192,657.90 0.05 1,192,657.90
Account receivable with single
minor amount but withdrawal single 23,858,289.67 0.98 22,173,696.06 92.94 1,684,593.61
item bad debt provision
Account receivable withdrawal bad
debt provision by portfolio 1,377,396,479.09 56.92 120,013,557.89 8.71 1,257,382,921.20
Including: account receivable of
engineering customers 225,796,909.41 9.33 21,022,556.39 9.31 204,774,353.02
Receivables other than engineering
customers 1,151,599,569.68 47.59 98,991,001.50 8.60 1,052,608,568.18
Total 2,420,022,679.90 100.00 149,169,447.78 6.16 2,270,853,232.12
(Continued)
Opening balance
Category Book balance Bad debt provision
Ratio Book value
Amount Ratio (%) Amount
(%)
Account receivable that withdrawal
bad debt provision by single item 822,475,594.55 53.40 25,372,653.49 3.08 797,102,941.06
Including: current payment with related
party 754,228,757.41 48.97 4,149,753.85 0.55 750,079,003.56
Account receivable with letter of
credit 47,023,937.50 3.05 47,023,937.50
Account receivable with single
minor amount but withdrawal single 21,222,899.64 1.38 21,222,899.64 100.00
item bad debt provision
Account receivable withdrawal bad
debt provision by portfolio 717,853,201.83 46.60 74,081,451.61 10.32 643,771,750.22
Including: account receivable of
engineering customers 191,420,885.49 12.43 15,308,246.27 8.00 176,112,639.22
Receivables other than engineering
customers 526,432,316.34 34.17 58,773,205.34 11.16 467,659,111.00
Total 1,540,328,796.38 100.00 99,454,105.10 6.46 1,440,874,691.28
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
157
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
single receivables, and withdrawal bad debt provision by combination shows no risk characteristic of the
receivables, 64 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) 29,837,468.00
More than 3 months and less than 6 months (6
28,454,538.58
months included)
Over 6 months and within one year (One year
113,588,126.66
included)
Over one year - within 2 years (2 years included) 26,977,783.97 5,395,556.79 20.00
Over 2 years - within 3 years (3 years included) 22,623,985.20 11,311,992.60 50.00
Over 3 years 4,315,007.00 4,315,007.00 100.00
Total 225,796,909.41 21,022,556.39
(Continued)
Opening balance
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 47,442,159.78
More than 3 months and less than 6 months
66,786,580.82
(6 months included)
Over 6 months and within one year (One year
24,376,909.49
included)
Over one year - within 2 years (2 years
38,592,189.76 7,718,437.95 20.00
included)
Over 2 years - within 3 years (3 years
13,266,474.64 6,633,237.32 50.00
included)
Over 3 years 956,571.00 956,571.00 100.00
Total 191,420,885.49 15,308,246.27
B. Receivables other than engineering customers
158
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Ending balance
Account age Bad debt
Book balance Provision ratio (%)
provision
Within 3 months (3 months included) 907,144,840.15 9,071,448.40 1.00
More than 3 months and less than 6 months (6
47,241,864.84 4,724,186.48 10.00
months included)
Over 6 months and within one year (One year
77,647,870.89 15,529,574.18 20.00
included)
Over one year - within 2 years (2 years included) 96,831,997.36 48,415,998.68 50.00
Over 2 years - within 3 years (3 years included) 7,416,013.41 5,932,810.73 80.00
Over 3 years 15,316,983.03 15,316,983.03 100.00
Total 1,151,599,569.68 98,991,001.50
(Continued)
Opening balance
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 299,994,550.94 2,999,945.51 1.00
More than 3 months and less than 6 months
68,972,844.55 6,897,284.46 10.00
(6 months included)
Over 6 months and within one year (One
126,004,879.57 25,200,975.91 20.00
year included)
Over one year - within 2 years (2 years
12,130,576.34 6,065,288.17 50.00
included)
Over 2 years - within 3 years (3 years
8,598,768.25 6,879,014.60 80.00
included)
Over 3 years 10,730,696.69 10,730,696.69 100.00
Total 526,432,316.34 58,773,205.34
(2) By account age
Account age Ending balance Opening balance
Within 3 months (3 months included) 1,835,823,014.20 1,081,226,013.94
More than 3 months and less than 6 months (6
145,211,963.66 162,654,138.54
months included)
Over 6 months and within one year (One year
163,722,660.71 179,880,109.29
included)
Over one year - within 2 years (2 years included) 159,003,059.62 63,134,405.85
159
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Account age Ending balance Opening balance
Over 2 years - within 3 years (3 years included) 78,284,260.67 23,736,943.93
Over 3 years 37,977,721.04 29,697,184.83
Total 2,420,022,679.90 1,540,328,796.38
(3) Bad debt provision of accounts receivable this period
Changes this period
Category Opening balance Withdrawal or Resale or Other Ending balance
Accrual
reversal write-off decreases
Bad debt
99,454,105.10 51,578,302.20 714,463.58 1,148,495.94 149,169,447.78
provision
Total 99,454,105.10 51,578,302.20 714,463.58 1,148,495.94 149,169,447.78
(4) Account receivable actually written-off in Current Period: nil
(5) Top five receivables collected by arrears party amounting to 1,628,322,390.23 yuan in total, accounted
for 67.29% of the receivables of Current Period-end, the bad debt provision accrual correspondingly
amounting to 60,335,952.55 yuan at period-end balance.
(6) Account receivable terminated recognition due to the transfer of financial assets: 1,193,151,944.08 yuan
(7) No assets and liability transfer account receivable and continues to involve
5. Receivables financing
Item Ending balance Opening balance
Bank acceptance 1,380,100,294.09 1,808,109,301.56
Total 1,380,100,294.09 1,808,109,301.56
(1)Notes receivable already pledged that presented in receivables financing:
Item Amount pledged at period-end Amount pledged at period-begin
Bank acceptance 515,578,650.05 385,477,263.99
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. 63. Assets with restricted ownership or
use rights.
(2)Receivable financing that have been endorsed or discounted at end of the Period and are not yet due
at balance sheet date
Amount derecognition at Amount without
Item
period-end derecognition at period-end
Bank acceptance 1,145,936,133.26
Total 1,145,936,133.26
160
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
6. Accounts paid in advance
(1) Age of account paid in advance
Ending balance Opening balance
Item
Amount Ratio （%） Amount Ratio （%）
Within one year 24,668,194.57 85.88 28,208,857.49 94.77
1-2 years 3,188,170.86 11.10 1,557,939.85 5.23
2-3 years 868,224.49 3.02
Over 3 years
Total 28,724,589.92 100.00 29,766,797.34 100.00
(2) Top 5 of account paid in advance in balance at period-end amounting to 19,882,246.82 yuan, accounted
for 69.22% of the account.
7. Other account receivable
Item Ending balance Opening balance
Other account receivable 101,572,345.96 111,652,635.86
Total 101,572,345.96 111,652,635.86
(1) Category of other account receivable
Nature Book balance at period-end Book balance at period-begin
Export rebate 8,001,439.54 26,634,190.54
Cash deposit 57,304,812.87 70,481,345.37
Loans of employee’s pretty cash 14,573,159.55 12,299,111.06
Related party not in consolidation statement 872,583.65 718,189.14
Advance money temporary 95,223.40 355,045.58
Compensation payments 21,077,786.35
Other 373,164.28 2,289,144.60
Total 102,298,169.64 112,777,026.29
(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. 2022 1,074,390.43 50,000.00 1,124,390.43
Book balance of other account
— — — —
receivable in Current Period as
161
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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)
at 1 Jan. 2022
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Period -397,219.49 -397,219.49
Reversal in Current Period
Conversion in Current Period
Write off in Current Period
Other change -1,347.26 -1,347.26
Balance as at 30 Jun. 2022 675,823.68 50,000.00 725,823.68
(3) By account age
Account age Ending balance Opening balance
Within 3 months (3 months included) 46,412,715.34 50,798,283.74
More than 3 months and less than 6 months (6
4,165,411.25 15,511,159.70
months included)
Over 6 months and within one year (One year
16,711,089.16 7,875,791.66
included)
Over one year - within 2 years (2 years included) 25,648,393.78 28,844,885.97
Over 2 years - within 3 years (3 years included) 4,068,922.94 4,113,598.75
Over 3 years 5,291,637.17 5,633,306.47
Total 102,298,169.64 112,777,026.29
(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 balanceofbad
ending balance (%) debtprovision
Insurance Within 3
Unit I 18,970,000.00 18.54
compensation months
Unit II Cash deposit 8,780,849.40 1-2 years 8.58
Within 3
Unit III Tax rebate 8,001,439.54 7.82
months
Within 3
Unit IV Cash deposit 5,320,000.00 5.20
months
6 months-1
Unit V Cash deposit 3,692,993.00 3.61
year & 2-3
162
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Proportion in total Ending
Name Nature Ending balance Account age other receivables balanceofbad
ending balance (%) debtprovision
years
Total 44,765,281.94 43.75
—
(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
Endingbalance
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 174,635,938.38 10,907,638.25 163,728,300.13
Stock commodities 979,870,437.65 56,093,198.50 923,777,239.15
Low value consumable articles 4,953,458.19 1,381,368.56 3,572,089.63
Goods in transit 406,727,070.61 11,467,431.64 395,259,638.97
Goods-in-process 8,957,686.73 8,957,686.73
Contract performance cost 85,722,861.49 238,513.90 85,484,347.59
Deferred expense for mould 26,939,080.51 26,939,080.51
Total 1,687,806,533.56 80,088,150.85 1,607,718,382.71
(Continued)
Opening balance
Inventory price decline
Item provision/contract
Book balance Book value
performance cost
impairment provision
Raw materials 129,438,627.36 8,482,723.94 120,955,903.42
Stock commodities 828,837,153.50 51,052,406.21 777,784,747.29
Low value consumable articles 5,564,313.19 954,827.34 4,609,485.85
Goods in transit 295,059,984.05 8,068,827.90 286,991,156.15
Goods-in-process 5,351,870.75 5,351,870.75
Contract performance cost 123,275,655.95 241,230.88 123,034,425.07
Deferred expense for mould 37,629,831.27 37,629,831.27
Total 1,425,157,436.07 68,800,016.27 1,356,357,419.80
163
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(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 8,482,723.94 3,175,642.94 750,728.63 10,907,638.25
Stock
51,052,406.21 20,087,356.08 14,760,739.90 285,823.89 56,093,198.50
commodities
Goods in transit 8,068,827.90 6,097,340.32 2,698,736.58 11,467,431.64
Low value
consumable 954,827.34 451,521.74 24,980.52 1,381,368.56
articles
Contract
performance 241,230.88 129,268.24 131,985.22 238,513.90
cost
Total 68,800,016.27 29,941,129.32 18,367,170.85 285,823.89 80,088,150.85
(3) Accrual for inventory falling price reserves
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. Contract assets
(1) Contract assets
Ending balance Opening balance
Item Impairment Book Impairment Book
Book balance Book value
provision balance provision value
Warranty 3,122,238.55 808,716.15 2,313,522.40
Total 3,122,238.55 808,716.15 2,313,522.40
(2) Provision for impairment of contract asset in the Period
Changes this period
Opening
Category Withdrawal or Resale or Other Ending balance
balance Accrual
reversal write-off decreases
Bad debt
808,716.15 808,716.15
provision
Total 808,716.15 808,716.15
10. Other current assets
164
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance
Value-added tax to be deducted 80,696,124.37 110,346,536.34
Advance payment of income tax 6,655,545.53 6,114,297.55
Contract acquisition cost 3,417,508.13 7,740,783.12
Prepaid disability insurance 39,317.44 39,317.44
Prepaid listing fee 2,517,169.81
Total 93,325,665.28 124,240,934.45
165
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
11. Long-term equity investment
Changes in Current Period Ending
Additio Investment Other Other Provisi balance
Declaration of Ending
Invested enterprise Opening balance nal Disinve profit and loss comprehen change on for of
cash dividends Other balance
invest stment confirmed by sive income s of impair impair
or profits ment
ment equity method adjustment equity ment
Associated companies
1.Hefei Xingmei Assets Management
19,835,366.84 4,686,303.37 5,069,400.00 19,452,270.21
Co., Ltd.
2.Sichuan Zhiyijia Network Technology
34,084,025.62 3,133,405.42 37,217,431.04
Co., Ltd.note 1
3.Hong Yuan Ground Energy Heat Tech.
20,630,114.17 -569,440.92 20,060,673.25
Co., Ltdnote2
4.Sichuan Tianyou Guigu Technology
2,974,188.94 69,455.43 3,043,644.37
Co., Ltdnote3
5.Chengdu Guigu Environmental Tech.
9,107,964.96 33,664.25 9,141,629.21
Co., Ltdnote4
6.ChanghongRuba
ElectricCompany(Private)Ltd.note5
7.Hefei Xinmeitai Energy Technology
1,617,928.00 1,617,928.00
Co., Ltdnote6
Total 86,631,660.53 8,971,315.55 6,687,328.00 88,915,648.08
166
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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%.
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 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
167
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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.
12. Debt investment
Ending balance Opening balance
Item
Impairment Book Impairment Book
Book balance Book value
provision balance provision value
negotiable large
certificate of 291,305,319.44 291,305,319.44
deposit
Total 291,305,319.44 291,305,319.44
13. Other non-current financial assets
Item Ending balance Opening balance
Sichuan Changhong Group Finance Co., Ltd. 532,961,488.43 532,961,488.43
Huishang Bank Co., Ltd. 5,000,000.00 5,000,000.00
Hongyun Fund 38,239,153.07 44,018,952.27
Total 576,200,641.50 581,980,440.70
14. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Total
I. Original book value
1.Opening balance 60,688,532.10 60,688,532.10
2.Increase this period
3.Decrease this period
4.Ending balance 60,688,532.10 60,688,532.10
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 7,538,597.65 7,538,597.65
2.Increase this period 958,748.77 958,748.77
(1) Provision or amortization 958,748.77 958,748.77
3.Decrease this period
4.Ending balance 8,497,346.42 8,497,346.42
III. Impairment loss
IV. Book value
168
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item House and buildings Total
1. Ending book value 52,191,185.68 52,191,185.68
2. Opening book value 53,149,934.45 53,149,934.45
(2) No investment real estate measured by fair value at period-end.
(3) Particular about mortgage of investment property at period-end
Original book Accumulated Impairment
Name Book value
value depreciation provision
House and buildings 5,795,017.72 2,426,406.41 3,368,611.31
(4) Investment real estate without property certification held
Reasons for failing to complete
Item Book value
property rights certificate
J04workshop 28,103,467.30 Related property rights in procedure
J03workshop 18,040,910.63 Related property rights in procedure
J20 air compressor station workshop 1,192,213.84 Related property rights in procedure
J18 opening and closing office 551,938.73 Related property rights in procedure
Total 47,888,530.50
15. Fixed assets
Item Book value at period-end Book value at period-begin
Fixed assets 2,190,629,094.63 2,227,247,182.81
Disposal of fixed assets 75,875,517.11 75,875,517.11
Total 2,266,504,611.74 2,303,122,699.92
13.1 Fixed assets
(1) Fixed assets
Machinery Transport
Item Houseand buildings Otherequipment Total
equipment equipment
I. Originalbookvalue
1.Opening balance 1,688,670,197.57 1,768,708,568.16 34,465,918.34 220,259,731.03 3,712,104,415.10
2.Increasethisperiod 1,527,440.22 62,840,181.44 821,337.36 18,511,910.88 83,700,869.90
(1) Purchase 3,338,545.54 334,766.92 4,235,165.59 7,908,478.05
(2) Construction in
1,527,440.22 59,486,692.69 486,570.44 14,246,357.45 75,747,060.80
progresstransfer-in
(3) Inventory transferin
14,943.21 30,387.84 45,331.05
forown use
3.Decreasethisperiod 5,980,029.39 39,198,584.99 1,730,980.47 969,718.01 47,879,312.86
(1) Disposeor
5,603,921.90 34,173,122.18 1,632,488.00 714,514.05 42,124,046.13
retirement
169
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Machinery Transport
Item Houseand buildings Otherequipment Total
equipment equipment
(2) Transfer to
construction in 5,025,462.81 5,025,462.81
progress
(3)decreasein exchange
98,492.47 255,203.96 353,696.43
ratechanges
(4)Temporary estimated
376,107.49 376,107.49
decrease
4.Ending balance 1,684,217,608.40 1,792,350,164.61 33,556,275.23 237,801,923.90 3,747,925,972.14
II.Accumulated
depreciation
1.Opening balance 404,141,977.35 959,058,685.14 22,160,271.70 98,094,721.61 1,483,455,655.80
2.Increasethisperiod 26,975,224.20 73,994,008.09 1,415,411.88 9,186,931.08 111,571,575.25
（1）Accrual 26,975,224.20 73,994,008.09 1,415,411.88 9,186,931.08 111,571,575.25
3.Decreasethisperiod 2,650,171.03 33,470,253.50 1,625,490.89 834,083.11 38,579,998.53
(1) Disposeor
2,650,171.03 32,083,131.27 1,557,800.57 661,820.47 36,952,923.34
retirement
(2) Transfer to
construction in 1,387,122.23 1,387,122.23
progress
(3)decreasein exchange
67,690.32 172,262.64 239,952.96
ratechanges
4.Ending balance 428,467,030.52 999,582,439.73 21,950,192.69 106,447,569.58 1,556,447,232.52
III.Impairmentloss
1.Opening balance 1,260,961.87 140,614.62 1,401,576.49
2.Increasethisperiod
3.Decreasethisperiod 551,931.50 551,931.50
(1) Disposeor
551,931.50 551,931.50
retirement
4.Ending balance 709,030.37 140,614.62 849,644.99
IV Bookvalue
1.Endingbook value 1,255,750,577.88 792,058,694.51 11,606,082.54 131,213,739.70 2,190,629,094.63
2.Opening bookvalue 1,284,528,220.22 808,388,921.15 12,305,646.64 122,024,394.80 2,227,247,182.81
The new fixed assets in this period mainly due to the 75,747,060.80 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
Original book Accumulated Impairment
Name Book value
value depreciation provision
House and buildings 475,337,823.38 132,590,551.27 342,747,272.11
(4) Fixed assets leased through operating lease at period-end
170
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Original book Accumulated Impairment
Item Book value
value depreciation provision
House and buildings 57,978,587.55 17,205,319.38 40,773,268.17
Machinery
32,253,032.17 11,990,197.80 20,262,834.37
equipment
Other equipment 3,142,260.30 1,794,727.88 1,347,532.42
Total 93,373,880.02 30,990,245.06 62,383,634.96
(5) Fixed assets without property certificate
Reason of not complete the property
Item Book value
certificate
Testing and experiment center
37,912,934.58 Related property rights in procedure
building
J07 electrical workshop 33,100,480.42 Related property rights in procedure
J02workshop 29,714,921.96 Related property rights in procedure
J01workshop 27,541,882.00 Related property rights in procedure
J05 evaporator and condenser
26,165,222.29 Related property rights in procedure
workshop
II section canteen of living area 20,201,985.47 Related property rights in procedure
J06 central air-conditioner workshop 16,740,068.06 Related property rights in procedure
J50finished product warehouse 15,815,784.10 Related property rights in procedure
J51finished product warehouse 15,307,197.71 Related property rights in procedure
J53finished product warehouse 11,763,841.04 Related property rights in procedure
J54finished product warehouse 10,940,337.26 Related property rights in procedure
J52finished product warehouse 10,923,969.80 Related property rights in procedure
J55finished product warehouse 10,021,406.73 Related property rights in procedure
J56finished product warehouse 10,021,406.73 Related property rights in procedure
J09raw material warehouse 5,964,585.42 Related property rights in procedure
J10raw material warehouse 4,659,638.21 Related property rights in procedure
J11raw material warehouse 4,576,541.18 Related property rights in procedure
4# makeshift shelter 4,448,271.27 Related property rights in procedure
J08 packing materials warehouse 4,338,927.47 Related property rights in procedure
J15 house of refrigerant forklift 1,259,120.19 Related property rights in procedure
J17 chemical storage 1,236,545.52 Related property rights in procedure
J16 chemical storage 1,130,705.63 Related property rights in procedure
J19 main guard room 310,812.99 Related property rights in procedure
J19A guard room 196,303.42 Related property rights in procedure
J19D guard room 143,640.17 Related property rights in procedure
J19E guard room 143,640.17 Related property rights in procedure
Total 304,580,169.79
(7) No fixed assets held for sale at period-end
171
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
15.2 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.
16. Construction in progress
Item Ending balance Opening balance
Construction in progress 103,923,104.08 98,469,862.45
Total 103,923,104.08 98,469,862.45
(1) Details of construction in progress
Endingbalance Opening balance
Item Impairment Book Impairment
Book balance Bookvalue Bookvalue
provision balance provision
Front-end expansion project of Hefei
base with an annual output of 10 22,408,137.87 22,408,137.87 16,686,639.69 16,686,639.69
million refrigerator cabinets
Industrial Internet Changhong
9,609,549.93 9,609,549.93 10,480,730.43 10,480,730.43
Meiling Promotion Project
Meiling extrusion line relocation and
7,380,555.55 7,380,555.55 3,875,215.73 3,875,215.73
capacity expansion project
172
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Endingbalance Opening balance
Item Impairment Book Impairment
Book balance Bookvalue Bookvalue
provision balance provision
Comprehensive renovation project of
mixed flow of rainwater and sewage 6,598,693.27 6,598,693.27 4,385,756.91 4,385,756.91
in freezer park and living area
Blister production line construction 5,604,355.20 5,604,355.20
Freeze lining structure changed to
2,747,345.12 2,747,345.12
bottom package side
The third floor testing and packaging
2,729,203.56 2,729,203.56 2,707,964.62 2,707,964.62
line technical transformation project
Liquid nitrogen tank production
2,580,258.29 2,580,258.29 6,778,105.41 6,778,105.41
line construction
Efficiency improvement of
2,362,746.25 2,362,746.25 4,704,867.17 4,704,867.17
refrigerator cabinet
Y21 manufacturing system
2,198,496.56 2,198,496.56 13,973,307.43 13,973,307.43
automation (Phase I)
Multi-door shell molding line 2,163,716.89 2,163,716.89
Supporting production equipment
2,144,601.77 2,144,601.77
of washing machine
Efficiency improvement for 2022
1,991,238.96 1,991,238.96
in manufacturing center
Tank replacement and testing 1,656,656.37 1,656,656.37
Accident response pool
1,389,325.45 1,389,325.45
construction
Technical transformation project of
787,667.26 787,667.26 4,530,389.50 4,530,389.50
Zhongshan Changhong
2022 capacity and capability
improvement of the manufacturing
173,455.15 173,455.15 6,419,964.72 6,419,964.72
system in Air Conditioning
Company
Overseas product upgrade supporting
box shell line, door shell line and
3,731,036.22 3,731,036.22
some old product competitiveness
improvement projects
Washing machine business unit MES
2,457,735.83 2,457,735.83
system online project
Meiling PLM Project 1,636,792.46 1,636,792.46
Other petty projects 29,397,100.63 29,397,100.63 16,101,356.33 16,101,356.33
Total 103,923,104.08 103,923,104.08 98,469,862.45 98,469,862.45
(2) Changes in significant construction in progress
Transfer to
Book balance Increase in fixed assets in Book
Other decrease Sourceof
Projects at period- Current balance at
Current funds
begin Period period-end
Period
Front-end
expansion project
of Hefei base with Self-
16,686,639.69 7,606,453.91 1,884,955.73 22,408,137.87
an annual output of raised
10 million
refrigerator
173
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Transfer to
Book balance Increase in fixed assets in Book
Other decrease Sourceof
Projects at period- Current balance at
Current funds
begin Period period-end
Period
cabinets
(Continued)
including: Interest
Proportion of Accumulated interest capitaliza
Budget (in 10
project Progre amount of capitalized tion rate
Projects thousand
investment in ss interest amount of of
Yuan)
budget capitalization Current Current
Period Period
Front-end expansion project
of Hefei base with an annual
4,121.24 72.58% 80.00%
output of 10 million
refrigerator cabinets
17. Right-of-use assets
Item House building Total
I. Original book value
1.Opening balance 54,071,205.97 54,071,205.97
2.Increase this period 1,089,224.86 1,089,224.86
(1) Rent in 1,089,224.86 1,089,224.86
3.Decrease this period
4.Ending balance 55,160,430.83 55,160,430.83
II. Accumulated depreciation
1.Opening balance 8,703,287.66 8,703,287.66
2.Increase this period 6,170,422.64 6,170,422.64
(1) Accrual 6,170,422.64 6,170,422.64
3.Decrease this period
4.Ending balance 14,873,710.30 14,873,710.30
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 40,286,720.53 40,286,720.53
2. Opening book value 45,367,918.31 45,367,918.31
18. Intangible assets
174
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(1) Intangible assets
Trademark Non-patent
Item Land use right Other Total
special right technology
I. Original book
value
1.Opening balance 869,724,297.57 283,292,439.34 549,144,800.67 137,253,797.42 1,839,415,335.00
2.Increase this
25,171,017.17 13,983,835.08 39,154,852.25
period
(1) Purchase 693,451.31 693,451.31
(2) Internal
25,171,017.17 13,290,383.77 38,461,400.94
research
3.Decrease this
4,925,680.89 10,362,539.53 15,288,220.42
period
(1) Disposal 4,925,680.89 3,280,328.88 8,206,009.77
(1) Other
7,082,210.65 7,082,210.65
decreases
4.Ending balance 864,798,616.68 283,292,439.34 574,315,817.84 140,875,092.97 1,863,281,966.83
II. Accumulated
amortization
1.Opening balance 198,473,939.86 283,292,439.34 348,547,882.12 27,185,807.78 857,500,069.10
2.Increase this
9,213,047.64 46,299,922.34 19,395,874.81 74,908,844.79
period
（1）Accrual 9,213,047.64 46,299,922.34 19,395,874.81 74,908,844.79
3.Decrease this
1,924,297.31 5,750,495.00 7,674,792.31
period
(1) Disposal 1,924,297.31 3,280,328.88 5,204,626.19
(2) Other
2,470,166.12 2,470,166.12
decreases
4.Ending balance 205,762,690.19 283,292,439.34 394,847,804.46 40,831,187.59 924,734,121.58
III. Provision for
impairment
1.Opening balance 24,003,670.24 4,508,495.33 28,512,165.57
2.Increase this
period
3.Decrease this
period
4.Ending balance 24,003,670.24 4,508,495.33 28,512,165.57
IV. Book value
1. Ending book
659,035,926.49 155,464,343.14 95,535,410.05 910,035,679.68
value
2. Opening book
671,250,357.71 176,593,248.31 105,559,494.31 953,403,100.33
value
The intangible assets resulted from internal research takes 2.06% of the balance of intangible assets at
period-end
(2) No land use right without property certification done at period-end
(3) Up to end of June 2022, mortgage of intangible assets is as follows:
175
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Name Property certificate serials Area(M2) Net book value Note
Land use
HGYJCZi No.: 0121 27,120.22 16,765,001.87
right
Wan (2019) Property right of Hefei No.:
Land use 1148244/1148249/1148243/1148240/1148248/1148
477,550.03 229,136,021.56
right 246/1148241/1148238/1149101/1148242/1148245/
1148239/1148237/1148250/1148247/1149102
Land use Wan (2019) Property right of Feixi County No.:
33,383.10 13,039,829.51
right 0061435/0061445
Wan (2019) Property right of Feixi County No.:
Land use
0061456/0061447/0061438/0061440/0061452/006 82,850.51 17,969,112.49
right
1450/0061430/0061657
Total 620,903.86 276,909,965.43
19. 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 39,938,415.03 41,134,297.63 4,073,227.83 25,421,047.00 51,578,437.83
for Air-conditioner
Technology
development 47,790,575.83 54,891,134.71 3,594,169.74 13,040,353.94 86,047,186.86
for refrigerator
Total 87,728,990.86 96,025,432.34 7,667,397.57 38,461,400.94 137,625,624.69
20. Goodwill
(1) Original value of goodwill
Increase this period Decrease this period
Formatio Formatio
Invested enterprise Opening n from Othe n from Ending balance
balance Other
enterpris r enterpris
e merger e 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
Increase this
Decrease this period
Invested enterprise Opening period Ending
balance Othe balance
Accrual Accrual Other
r
Hefei Meiling Group
3,553,367.77 3,553,367.77
Holdings Limited
Total 3,553,367.77 3,553,367.77
176
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Note: The Company’s goodwill has been fully accrued for impairment reserves at period-end.
21. Long-term prepaid expenses
Amortizati
Opening Increase this Other Ending
Item on for the
balance period decreases balance
period
Engineering renovation expenses 381,978.97 19,080.92 362,898.05
Total 381,978.97 19,080.92 362,898.05
22. Deferred tax assets and deferred tax liabilities
(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
167,988,006.74 25,269,308.51 145,988,355.30 21,966,046.25
from assets impairment
Deferred income tax assets recognized
11,912,507.94 1,786,876.19 11,363,601.65 1,704,540.25
from accrual liability
Deferred income tax assets recognized
9,745,724.62 1,461,858.69 11,268,982.33 1,690,347.35
from Dismission welfare
Deferred income tax assets recognized
99,391,000.78 14,908,650.12 110,534,463.54 16,580,169.53
from deferred income
Deferred income tax assets recognized from
834,217,626.07 125,132,643.91 695,409,549.32 104,311,432.40
ir-reparable losses
Accrued income tax assets 5,727,967.73 862,496.04 8,238,783.30 1,235,817.50
Other 24,868,214.11 3,730,232.12
Total 1,153,851,047.99 173,152,065.58 982,803,735.44 147,488,353.28
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 2022, 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 21,257,933.76 3,188,690.06 23,595,650.26 3,539,347.53
Recognized by changes in fair value 38,003,012.26 5,700,451.84 40,873,919.41 6,131,087.92
177
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Ending balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Total 59,260,946.02 8,889,141.90 64,469,569.67 9,670,435.45
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 108,844,382.55 94,823,765.42
Deductible loss 980,228,966.20 1,075,371,859.07
Total 1,089,073,348.75 1,170,195,624.49
23. Other non-current assets
Item Ending balance Opening balance
Prepaid equipment, engineering, etc. 999,030.66 3,087,780.59
Total 999,030.66 3,087,780.59
24. Short-term loans
Category Ending balance Opening balance
Guaranteed loan 35,000,000.00 5,000,000.00
Loan in credit 1,052,040,918.37 615,000,000.00
Interest payable 250,527.78 2,874,652.77
Total 1,087,291,446.15 622,874,652.77
Short-term loans at Current Period-end:
1) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co., Ltd. with 364 days in
term. Term of borrowing is from 16 July 2021 to 15 July 2022. The interest rate is the quoted market rate for one year
loans minus 55bp, floating on an annual basis and borrowing amounted to 10,000,000.00 yuan.
2) The Company entered into aBorrowing Contract of Working Capital Loans with Hefei Branch of China Minsheng
Bank Co., Ltd. with 1 year in term. Term of borrowing is from 27 August 2021 to 27 August 2022. Fixed rate of 3.20%,
the loan amount is 50,000,000.00 yuan.
3) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of Industrial
Bank Co., Ltd. with 364 days in term. Term of borrowing is from 17 December 2021 to 16 December 2022. Fixed rate
of 2.90%, the loan amount is 100,000,000.00 yuan.
4) 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. with 357 days in term.
Term of borrowing is from 24 December 2021 to 16 December 2022. Fixed rate of 2.9%, the loan amount is
180,000,000.00 yuan.
178
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
5) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of China
Minsheng Bank Co., Ltd. with 349 days in term. Term of borrowing is from 29 December 2021 to 13 December 2022.
Fixed rate of 2.20%, the loan amount is 100,000,000.00 yuan.
6) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of Industrial
Bank Co., Ltd. with 179 days in term. Term of borrowing is from 28 February 2022 to 26 August 2022. Fixed rate of
2.70%, the loan amount is 30,000,000.00 yuan.
7)The Company entered into a Buyer’s Interest Payment Agreement under Domestic Letter of Credit with Hefei Branch
of China Guangfa Bank. The contract signed with 182 days in term and contractual borrowing is from March 15, 2022
to September 13, 2022, borrowing amounted to 30,000,000.00 yuan with a fixed interest rate of 2.50%.
8） The Company entered into the Domestic Letter of Credit Opening Contract of Hangzhou Bank with Hefei Branch
of HZ Bank. The contract signed with 180 days in term and borrowing is from March 17, 2022 to September 13, 2022,
borrowing amounted to 25,000,000.00 yuan with a fixed interest rate of 2.58%.
9) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of China
Limited with 180 days in term. Term of borrowing is from 17 March 2022 to 13 September 2022. Fixed interest rate of
2.60%, the loan amount is 10,000,000.00 yuan.
10）The Company entered into the Borrowing Contract of RMB Working Capital Loan with Hefei Luyang Branch of
China Construction Bank. The contract signed with one year in term and borrowing is from March 30, 2022 to March 29,
2023, borrowing amounted to 100,000,000.00 yuan with a fixed interest rate of 3.30%.
11)The Company entered into the Opening Line Contract of Domestic L/C with Hefei Baohe District Branch of
Agricultural Bank of China. The contract signed with 177 days in term and borrowing is from April 2, 2022 to September
26, 2022, borrowing amounted to 50,000,000.00 yuan with a fixed interest rate of 2.65%.
12)The Company entered into the Cooperation Agreement on Opening the Domestic L/C with Hefei Branch of China
Merchants Bank. The contract signed with 178 days in term and borrowing is from April 19, 2022 to October 14, 2022,
borrowing amounted to 20,000,000.00 yuan with a fixed interest rate of 2.66%.
13) 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 180 days in term. Term of borrowing is from 20
April 2022 to 17 October 2022. Fixed interest rate of 2.70%, the loan amount is 50,000,000.00 yuan.
14)The Company entered into the Agreement on Opening the L/C Business with Hefei Branch of SPD Bank. The contract
signed with 180 days in term and borrowing is from April 21, 2022 to October 18, 2022, borrowing amounted to
25,000,000.00 yuan with a fixed interest rate of 2.60%.
15) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of China
Minsheng Bank Co., Ltd. with 181 days in term. Term of borrowing is from 22 April 2022 to 20 October 2022. Fixed
rate of 2.10%, the loan amount is 50,000,000.00 yuan.
179
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
16) The Company entered into the Contract of Opening the Domestic L/C with Anhui Branch of Bank of Communications.
The contract signed with 180 days in term and borrowing is from May 26, 2022 to November 22, 2022, borrowing
amounted to 50,040,918.37 yuan with a fixed interest rate of 2.05%.
17)The Company entered into the Issuing Contract of Domestic L/C with Hefei Branch of Postal Savings Bank of China.
The contract signed with 182 days in term and borrowing is from May 30, 2022 to November 28, 2022, borrowing
amounted to 50,000,000.00 yuan with a fixed interest rate of 1.30%.
18) The Company entered into a Buyer’s Interest Payment Agreement under Domestic Letter of Credit with Hefei Branch
of China Guangfa Bank. The contract signed with 180 days in term and contractual borrowing is from June 23, 2022 to
December 20, 2022, borrowing amounted to 30,000,000.00 yuan with a fixed interest rate of 1.98%.
19)The Company entered into an Agency Cooperation Agreement of Domestic L/C with Hefei Branch of Ping An Bank.
The contract signed with 180 days in term and contractual borrowing is from June 24, 2022 to December 21, 2022,
borrowing amounted to 50,000,000.00 yuan with a fixed interest rate of 2.10%.
20) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of
Industrial Bank Co., Ltd. with 179 days in term. Term of borrowing is from 27 June 2022 to 23 December 2022. Fixed
rate of 2.05%, the loan amount is 40,000,000.00 yuan.
21) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of China
Limited with 180 days in term. Term of borrowing is from 30 June 2022 to 27 December 2022. Fixed annual interest rate
of 2.23%, the loan amount is 2,000,000.00 yuan.
22) Subsidiary Hefei Changhong Meiling Life Appliances Co., Ltd entered into the Borrowing Contract with Hefei
Luyang Branch of HZ Bank. The contract signed with 364 days in term and borrowing is from March 23, 2022 to March
22, 2023, borrowing amounted to 20,000,000.00 yuan with a fixed loan APR of 3.45% which is guaranteed by the
Company.
23)Subsidiary Hefei Changhong Meiling Life Appliances Co., Ltd entered into the Issuing Agreement on Domestic L/C
with Huining Road Branch of Hefei Science & Technology Rural Commercial Bank. The borrowing term is from March
24, 2022 to December 27, 2022, borrowing amounted to 10,000,000.00 yuan with a fixed loan APR of 3.65% which is
guaranteed by the Company.
24)Anhui Tuoxing Technology Co., Ltd.- the wholly owned subsidiary of Zhongke Meiling Cryogenic Technology Co.,
Ltd(subsidiary of the Company) obtained a secured loans from Hefei Feicui Road Branch of Bank of China. The
borrowing term is from June 27, 2022 to June 27, 2023, borrowing amounted to 5,000,000.00 yuan with a fixed rate of
3.30% which is guaranteed by the subsidiary-Zhongke Meiling Cryogenic Technology Co., Ltd.
25. Trading financial liability
180
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Name Ending balance Opening balance
Trading financial liability 38,929,244.41 12,304,272.41
Including: Derivative financial liability 38,929,244.41 12,304,272.41
26. Note payable
Item Ending balance Opening balance
Bank acceptance 4,356,012,661.73 4,663,885,311.94
Trade acceptance 146,907,573.73 175,952,005.84
Total 4,502,920,235.46 4,839,837,317.78
27. Account payable
(1) Account payable
Item Ending balance Amount at year-begin
Total 3,832,859,258.27 2,299,103,796.88
Including: Amount aged over 1 year 63,148,576.16 94,640,539.62
(2) No major account payable with over one year book age at period-end.
28. Contract liabilities
Item Ending balance Opening balance
Total 351,317,980.38 515,004,115.23
Including: Amount aged over 1 year 50,182,899.32 17,740,130.48
29. Wages payable
(1) Category
Item Opening balance Increase this period Decrease this period Ending balance
Short-term compensation 241,024,057.25 788,097,986.06 815,373,920.31 213,748,123.00
After-service welfare- defined
2,495,637.65 55,818,890.81 53,551,087.07 4,763,441.39
contribution plans
Dismiss welfare 3,524,726.66 2,590,110.44 2,233,693.58 3,881,143.52
Total 247,044,421.56 846,506,987.31 871,158,700.96 222,392,707.91
(2) Short-term compensation
Item Opening balance Increase this period Decrease this period Ending balance
Wages,bonuses, allowances and
234,141,842.08 706,008,342.70 733,642,135.12 206,508,049.66
subsidies
181
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Opening balance Increase this period Decrease this period Ending balance
Welfare for workers and staff 100,023.78 21,013,093.97 20,948,269.79 164,847.96
Social insurance 1,151,987.24 24,350,886.16 24,169,042.30 1,333,831.10
Including: Medical
1,080,480.56 22,933,010.61 22,864,576.83 1,148,914.34
insurance
Work injury
10,353.31 1,384,970.71 1,293,906.58 101,417.44
insurance
Maternity insurance 61,153.37 32,904.84 10,558.89 83,499.32
Housing accumulation fund 4,861,802.68 35,184,312.73 34,985,686.89 5,060,428.52
Labor union expenditure and
768,401.47 1,541,350.50 1,628,786.21 680,965.76
personnel education expense
Total 241,024,057.25 788,097,986.06 815,373,920.31 213,748,123.00
(3) Defined contribution plans
Item Opening balance Increase this Decrease this Ending balance
period period
Basic endowment insurance 759,812.44 53,845,096.30 51,671,296.45 2,933,612.29
Unemployment insurance 1,735,825.21 1,973,794.51 1,879,790.62 1,829,829.10
Total 2,495,637.65 55,818,890.81 53,551,087.07 4,763,441.39
30. Tax payable
Item Ending balance Opening balance
Value-added tax 83,798,823.91 93,229,596.44
Enterprise income tax 6,116,146.52 3,665,806.85
Individual income tax 2,189,279.19 2,593,701.11
Urban maintenance and construction
11,824,224.07 8,227,864.32
tax
Real estate tax 3,777,438.11 3,758,773.24
Land use tax 1,430,344.51 1,550,831.89
Educational surtax 8,535,924.18 4,932,682.07
Stamp tax 2,826,337.46 3,798,892.56
Construction fund of Water
648,405.12 606,448.87
Conservancy Projects
Treatment fund for abandon electrics
28,410,536.00 18,489,806.00
& electronics
Other 1,589.26 1,020,458.53
Total 149,559,048.33 141,874,861.88
31. Other account payable
182
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance
Dividend payable 19,793,050.41 4,753,764.56
Other account payable 883,985,891.19 746,699,003.44
Total 903,778,941.60 751,452,768.00
31.1 Dividends payable
Item Ending balance Opening balance
Sichuan Changhong Electric Co., Ltd. 12,422,886.20
Hefei Industry Investment Holding (Group) Co.,
2,391,170.05
Ltd.
China Life Insurance (Group) Company 288,404.82 288,404.82
The People’s Insurance Company (Group) of China
432,607.23 432,607.23
Limited
BOC- Fullgoal Tianyi Securities Investment Fund 153,697.50 153,697.50
Hefei Branch of BOC 391,245.50 360,506.00
Hefei collective industry association 391,244.89 360,505.44
Entrust Investment Wuhu of Provincial ABC 312,996.42 288,404.82
Other units 3,008,797.80 2,869,638.75
Total 19,793,050.41 4,753,764.56
31.2 Other account payable
(1) Other account payable by nature
Nature Ending balance Opening balance
1.Accrued expenses (expenses occurred without reimbursed) 356,156,653.46 364,248,335.74
2. Receivables received temporary and deducted temporary 25,026,463.97 26,847,048.85
3.Deposit, margin 155,717,250.89 148,778,715.05
4.Not the come-and-go with related parties in statement
320,375,542.82 187,411,658.83
scope
5. Other 26,709,980.05 19,413,244.97
Total 883,985,891.19 746,699,003.44
(2) At end of Current Period, the major other account payable with account age over one year
mainly refers to deposit and margin.
32. Non-current liability due within one year
Item Ending balance Opening balance
Long-term loan principal and interest due within one year 20,201,972.50 320,520,933.33
Long term account payable due within one year 173,499.29
Lease liabilities due within one year 10,041,738.45 12,024,045.63
183
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Ending balance Opening balance
Total 30,243,710.95 332,718,478.25
33. Other current liabilities
Item Ending balance Opening balance
Pending sales tax 21,957,205.63 23,388,239.94
Factoring fees payable 419,897.59 785,519.22
Bill recovery 200,000.00
Total 22,377,103.22 24,373,759.16
34. Long term borrowings
(1) Category of long term borrowings
Category Ending balance Amount at year-begin
Loan in mortgage 158,000,000.00 168,000,000.00
Total 158,000,000.00 168,000,000.00
(2) Long-term borrowings at period-end
Forei
Borrowing Returning gn Interes Ending balance Opening
Loan from
day day curre t rate (RMB) balance (RMB)
ncy
EIBC (Export-Import Bank)
2019/12/23 2026/11/25 RMB 4.455% 60,000,000.00 70,000,000.00
Anhui Province Branch Note 1
EIBC (Export-Import Bank)
2020/3/26 2026/11/25 RMB 4.405% 98,000,000.00 98,000,000.00
Anhui Province Branch Note 2
Total 158,000,000.00 168,000,000.00
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 20,000,000.00 yuan. It plans to repay 10,000,000.00 yuan on December
25, 2022 and repay 10,000,000.00 on June 25, 2023, a total of 20,000,000.00 yuan has been reclassified to non-current
liabilities due within one year. The ending balance is 60,000,000.00 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 fixed assets and intangible assets are pledge against long-
184
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
term borrowings under the contract. On March 26, 2020, withdrawing 98,000,000.00 yuan from the bank. Term of
the loan is from March 26, 2020 to November 25, 2026. The interest rate of loan is determined based on the quoted
market rate for loans with a maturity of 5 years or more minus 0.195% and fluctuates annually. Amount of loans are
98,000,000.00 yuan, ending balance amounted to 98,000,000.00 yuan.
35. Lease liability
Item Ending balance Opening balance
Lease liability 30,061,422.30 33,225,912.15
Total 30,061,422.30 33,225,912.15
36. Long-term payable
Item Ending balance Opening balance
Special payable 1,241,464.86 1,337,643.24
Total 1,241,464.86 1,337,643.24
36.1 Special payable
Opening Increase this Decrease Ending
Item Reason
balance period this period balance
Special funds for
Technology plan
technological
1,337,643.24 96,178.38 1,241,464.86 project in Zhongshan
transformation from
City
Zhongshan Changhong
37. Long-term wage payable
Item Ending balance Opening balance
Dismissal welfare 8,710,896.43 9,828,300.06
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 8,710,896.43 yuan
38. Accrual liability
Item Ending balance Opening balance Reason
Guarantee of
Product quality guarantee note1 9,754,392.41 9,170,710.48
product
Guarantee of
Guarantee fund for quality service note1 365,085.53 399,861.15
product
Litigation matters note2 1,793,030.00 1,793,030.00
Total 11,912,507.94 11,363,601.63
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.
185
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Note2: In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke Meiling for the "Cold
Storage Design, Equipment Purchase and Installation Construction Contract". Currently, quality of the subject under the
contract is being authenticated by a third party engineering quality appraisal agency, the initial start-up operation test is
now completed. Zhongke Meiling intends to maintain the cold storage project, and the estimated maintenance cost is
1,793,030.00 yuan.
39. Deferred income
(1) Classification of deferred income
Opening Increase Decrease Ending
Item Reason
balance this period this period balance
Government subsidies---subsidies
139,155,085.63 1,442,700.00 12,251,179.06 128,346,606.57
of development project
Government subsidies---subsidies
36,508,953.20 1,696,550.52 34,812,402.68
of Relocation
Total 175,664,038.83 1,442,700.00 13,947,729.58 163,159,009.25
186
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(2) Government subsidy
Amount reckoned
Opening New subsidy in Other Ending Assetsrelated/Income
Item into other income in
balance Current Period changes balance related
Current Period
Demonstration factory construction for the intelligent manufacturing of
42,607,594.97 3,759,493.66 38,848,101.31 Assets related
intelligent air-conditioner
Demolition compensation of Changhong Meiling 36,104,113.24 1,291,710.56 34,812,402.68 Assets related
Key chip and module for transducer used and detection capacity building 7,600,000.00 7,600,000.00 Assets related
Centre for external cooperation of the environmental protection 7,687,368.20 515,754.53 7,171,613.67 Assets related
Changhong Air Conditioner- relocation of production base and
6,497,777.76 573,333.33 5,924,444.43 Assets related
upgrading & expansion
Subsidy for industrial development policy from Hefei for first half of
6,544,000.00 625,000.00 5,919,000.00 Assets related
2018
Adaptability improvement on new coolants production 7,094,945.01 1,182,490.86 5,912,454.15 Assets related
District-level subsidy funds for advanced manufacturing policies in the
5,595,843.75 373,056.26 5,222,787.49 Assets related
first half of 2021
Municipal award and subsidy for the advanced manufacturing policy in
5,222,875.00 373,062.50 4,849,812.50 Assets related
first half of 2020
Special fund, government subsidy CZ059001 4,200,000.00 4,200,000.00 Assets related
Subsidy for industrial development policy from Hefei for second half of
4,471,375.00 447,137.50 4,024,237.50 Assets related
2019
20-year subsidy for advancing technological transformation projects 4,108,758.34 267,962.50 3,840,795.84 Assets related
2021 manufacturing strong provincial policy subsidy funds 3,056,250.00 203,750.00 2,852,500.00 Assets related
Policy funds for manufacturing a strong province, subsidy for equipment
3,125,000.00 312,500.00 2,812,500.00 Assets related
for the technological transformation of industrial strong base
Subsidy for industrial development policy from Hefei for first half of
3,005,983.33 217,300.00 2,788,683.33 Assets related
2020
Government subsidy for new plant construction - industrialization of
2,791,666.67 250,000.00 2,541,666.67 Assets related
cryogenic refrigeration equipment
Subsidies for intelligent transformation & upgrading of enterprises from
2,675,064.58 302,837.50 2,372,227.08 Assets related
the new industrialization policy in economic development zone
187
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
Opening New subsidy in Other Ending Assetsrelated/Income
Item into other income in
balance Current Period changes balance related
Current Period
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR- 3,053,488.40 704,651.16 2,348,837.24 Assets related
CONDITIONER)
Research and application of the MCU chip for inverter control 2,300,000.00 2,300,000.00 Assets related
2020 supporting funds to support the innovation and development of
2,437,500.00 162,500.00 2,275,000.00 Assets related
artificial intelligence industry
2020 fund allocation for Anhui Province's triple innovation project 2,369,791.67 162,500.00 2,207,291.67 Assets related
Special funds for strategic emerging industry and high-end growth
1,896,551.72 206,896.55 1,689,655.17 Assets related
industry
Upgrading technology transformation of AC production line 1,385,600.00 113,903.75 1,271,696.25 Assets related
Industrialization of intelligent white household appliances software
1,575,757.60 363,636.36 1,212,121.24 Assets related
platform and typical application research and development
Equipment subsidy for the industrial base technical renovation from
1,312,083.33 117,500.00 1,194,583.33 Assets related
Economic and Information Commission
Upgrade project for the production line of Mianyang Meiling Intelligent
1,119,166.76 98,749.98 1,020,416.78 Assets related
Refrigerator
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special
1,092,060.21 152,823.25 939,236.96 Assets related
project 2019)
Subsidy for equipment purchasing for Hefei Tech. Improvement project
1,000,310.00 89,580.00 910,730.00 Assets related
in 2017
Subsidy for purchase of R & D instruments and equipment 699,992.68 91,056.26 608,936.42 Assets related
Emerging Industry Base Fund Support Item 613,608.25 38,350.52 575,257.73 Assets related
Promotion of the energy-saving room air conditioner 648,453.69 105,154.62 543,299.07 Assets related
Robot policy-rewards for purchasing robots 485,031.26 35,062.50 449,968.76 Assets related
Special fund for technical improvement 355,708.62 47,905.22 307,803.40 Assets related
Promoting the new industry (annual output of 0.6 million medium&
456,618.69 152,206.26 304,412.43 Assets related
large volume environmental protection and energy saving freezer)
Technical transformation of refrigerator evaporator workshop 333,437.50 30,312.50 303,125.00 Assets related
188
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Amount reckoned
Opening New subsidy in Other Ending Assetsrelated/Income
Item into other income in
balance Current Period changes balance related
Current Period
Special fund for technical improvement 380,238.04 51,904.80 328,333.24 Assets related
2018 Zhongshan Special fund for industrial development 292,650.70 38,996.16 253,654.54 Assets related
Technical transformation subsidy 177,438.37 15,890.00 161,548.37 Assets related
Refrigerator evaporator production workshop 128,229.24 14,516.51 113,712.73 Assets related
Technical renovation of air conditioner production line 94,758.27 30,578.55 64,179.72 Assets related
Subsidy of advanced manufacturing policy for second half of 2021 57,100.00 2,379.17 54,720.83 Assets related
Subsidy for the development on production line technical reform for
47,708.02 20,446.30 27,261.72 Assets related
green-friendly high-quality metal pipe
Demolition compensation of Jiangxi Meiling 404,839.96 404,839.96 Assets related
Total 175,664,038.83 1,442,700.00 13,947,729.58 163,159,009.25
189
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
40. Share capital
Change during the period (+、-)
Item Opening balance Shares Ending balance
New shares Bonus
transferred from Other Subtotal
issued share
capitalreserve
- -
Total
1,044,597,881.00 14,674,1 14,674,1 1,029,923,715.00
shares
66.00 66.00
41. Capital reserve
Increase this Decrease this
Item Opening balance Ending balance
period period
Share premium 2,634,786,308.86 12,493,667.73 2,622,292,641.13
Other capital
48,043,091.40 48,043,091.40
reserve
Total 2,682,829,400.26 12,493,667.73 2,670,335,732.53
Note: change of share premium in the Period refers to the handling charge from repurchase of B-Share 64.58 yuan,
cancellation of treasury stock in the Period was 12,493,603.15 yuan.
42. Treasury stock
Item Opening balance Increase this Decrease this Ending balance
period period
Repurchase of B shares 26,430,571.38 737,197.77 27,167,769.15
Total 26,430,571.38 737,197.77 27,167,769.15
Note: The Company held the 40th session of the 9thBOD, the 21st session of the 9thBOS, and the third extraordinary general
meeting of shareholders in 2020 on July 27 and August 18, 2020, which reviewed and approved the Proposal on the
Repurchase of Part of the Company's Domestically Listed Foreign Shares (B Shares)", and agreed that the company
would use its own funds to repurchase part of the company's domestically listed foreign shares (B shares) through
centralized bidding transactions, and the repurchased B shares would be cancelled in accordance with the law and the
registered capital of the company would be reduced accordingly. The total amount of the repurchase should be no less
than 50 million yuan(inclusive) and no more than 100 million yuan (inclusive), based on the central parity rate of Hong
Kong Dollar against RMB on July 24, 2020: 1 HKD = 0.9023 yuan, equivalent to Hong Kong dollars of not less than
HK$55,413,942.15 (inclusive) and not more than HK$110,827,884.30 (inclusive). The specific total amount of
repurchase funds should be subject to the total amount of funds actually used for the repurchase of shares at the expiration
of the repurchase period. The price of repurchasing B shares this time should not exceed HK$2.21/share (inclusive). After
the implementation of the 2020 annual profit distribution plan, the upper limit of the price of repurchasing B shares would
be adjusted from HK$2.21/share (inclusive) to HK$2.15/share (inclusive).
On August 24, 2021 and September 10, the Company held 11th session of 10th BOD, the 9th session of 10th BOS and third
190
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
extraordinary shareholders meeting of 2021 to deliberated and approved the Proposal on Continue and Partially Adjusted
the Repurchase Program of Certain Domestic Listed Foreign Shares (B share), agreed that the Company continue to
implement the Repurchase of Part of Domestic Listed Foreign Shares (B share) which has been approved at the previous
shareholders general meeting. At the same time, to extend the repurchase period of the aforementioned program to
February 18, 2022, that is repurchase implementation period starts from August 18, 2020 to February 18, 2022. Price of
the shares repurchased adjusted to not more than HK$ 2.36 per share (inclusive). the 9,582,882 shares (B share) that
repurchased at previous period will be cancelled in accordance with the law and regulations after the expiration of the
extended period.
Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased 14,674,166 shares
of the company (B shares) in centralized bidding transactions through the special securities account for repurchase until
February 18, 2022, representing 1.4048% of the total shares of the Company. The highest traded price was HK$2.36 per
share, and lowest traded price was HK$1.87 per share, the average price was HK$2.22. the funds used for repurchase of
shares amounted to HK$ 32,558,454.08 accumulative (transaction fees such as stamp duty and commission exclusive).
The 14,674,166 domestically listed foreign shares (B share) repurchased by the Company have been completed the
cancellation procedures at Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022
43. Other comprehensive income
Current Period
Less: written
in other
comprehensi Less
ve income in ：
previous Inco Belong to Belong to
Item Opening balance Account before period and me parent minority Ending balance
income tax in
carried tax company after shareholders
Current Period
forward to exp tax after tax
gains and ense
losses in s
current
period
Other comprehensive income re-divided into gains/losses
Conversion
difference
arising from
foreign -20,903,270.57 161,477.79 61,187.61 100,290.18 -20,842,082.96
currency
financial
statement
Total -20,903,270.57 161,477.79 61,187.61 100,290.18 -20,842,082.96
44. Surplus reserves
Increase this Decrease this
Item Opening balance Ending balance
period period
Statutory surplus reserve 307,503,534.74 307,503,534.74
Discretionary surplus
115,607,702.16 115,607,702.16
reserve
191
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Increase this Decrease this
Item Opening balance Ending balance
period period
Total 423,111,236.90 423,111,236.90
45. Retained profit
Item Current Period Last Year
Amount at the end of last year 734,129,724.00 740,754,202.23
Add: adjustment from undistributed profit at year-
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 734,129,724.00 740,754,202.23
Add: net profit attributable to shareholders of parent
60,375,199.25 51,898,388.84
company for this period
Less: withdraw of statutory surplus reserve 6,746,446.47
withdraw of discretionary surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares 51,496,185.75 51,776,420.60
Dividend of ordinary shares transferred to share
capital
Ending balance 743,008,737.50 734,129,724.00
46. Operation income and operation cost
(1) Operation income and operation cost
Current Period Last Period
Item
Income Cost Income Cost
Main
10,138,489,064.28 9,027,583,283.96 9,076,019,575.56 7,709,772,571.05
business
Other
86,014,486.91 33,497,247.10 526,739,769.73 467,458,625.12
business
Total 10,224,503,551.19 9,061,080,531.06 9,602,759,345.29 8,177,231,196.17
(2) Main business classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
3,557,279,193.80 3,052,742,990.21 4,083,961,202.33 3,333,608,452.02
freezer
Air-
5,350,650,174.76 4,907,155,572.46 3,958,753,350.50 3,540,481,498.57
conditioner
Washing
393,315,713.02 330,678,793.62 322,671,076.35 245,250,873.36
machine
Small 727,498,495.75 642,738,038.67 571,948,185.39 474,186,822.18
192
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
household
appliances and
kitchen and
bathroom
Other 109,745,486.95 94,267,889.00 138,685,760.99 116,244,924.92
Total 10,138,489,064.28 9,027,583,283.96 9,076,019,575.56 7,709,772,571.05
(3) Main business classified according to sales region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 7,475,522,523.09 6,574,576,772.52 6,392,384,758.43 5,212,930,284.17
Overseas 2,662,966,541.19 2,453,006,511.44 2,683,634,817.13 2,496,842,286.88
Total 10,138,489,064.28 9,027,583,283.96 9,076,019,575.56 7,709,772,571.05
(4) At end of the Period, the amount of revenue corresponding to performance obligations that have been contracted for
but not yet fulfill or not yet fulfilled was 137,082,770.11 yuan, of which, 39,802,951.78 yuan is expected to recognized
as revenue in 2022, 67,649,790.28 yuan is expected to recognized as revenue in 2023 and 29,630,028.05 yuan is expected
to recognized as revenue in 2024.
(5) Top five clients have income in sales of 6,155,942,986.63 yuan in total, a 60.21% in total operation income.
47. Business tax and extra charges
Item Current Period Last Period
Treatment fund for abandon electrics & electronics 34,053,294.00 24,442,938.00
City construction tax 11,595,547.22 6,500,216.07
Extra charge for education and local education
8,453,214.37 5,016,280.65
surcharge
Real estate tax 10,082,904.39 9,677,275.48
Stamp duty 7,967,068.56 7,917,813.37
Land use tax 3,745,329.40 4,111,310.87
Water fund 3,799,503.15 3,408,779.05
Other 4,583.20 3,117.48
Total 79,701,444.29 61,077,730.97
48. Sales expense
Item Current Period Last Period
Salary, extra charges and labor service expenses 276,149,382.91 265,425,977.62
Market support expenses 141,739,223.51 146,558,469.94
National three guarantees expense 87,232,488.89 62,323,679.78
193
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Shipping and Installation expense 60,200,021.37 383,528,356.21
Storage lease expenses 41,176,101.46 58,782,655.17
Travelling expenses 7,399,226.17 16,450,518.67
Business activity expenses 7,058,303.94 8,575,130.77
Vehicle expenses 6,683,479.81 3,175,822.45
Depreciation expenses 3,923,388.83 4,209,609.23
Advertising expenses 1,933,500.47 1,247,421.22
House-lease expenses 1,546,666.83 1,207,473.65
Other expenses 31,024,525.79 33,320,814.23
Total 666,066,309.98 984,805,928.94
49. Administration expense
Item Current Period Last Period
Salary and social insurance etc. 103,835,407.55 95,733,835.85
Depreciation 11,251,858.42 12,053,427.34
Amortized intangible assets 9,079,708.19 9,407,284.87
Water and electricity fee 2,245,082.21 3,137,429.43
Business activities fee 2,119,039.65 2,501,946.80
Property insurance fee 1,759,716.41 1,557,260.98
Domestic travelling fee 1,270,723.15 1,462,423.83
Office fee 709,951.38 1,063,725.75
Other expenses 31,860,655.01 26,040,092.13
Total 164,132,141.97 152,957,426.98
50. R&D expenses
Item Current Period Last Period
Salary and social insurance etc. 106,201,825.59 64,787,655.99
Amortized intangible assets 63,948,921.59 58,589,406.22
Trial fee of R&D 29,904,070.97 32,578,184.91
Cost of mould 15,297,848.50 1,384,855.16
Depreciation 8,315,504.26 6,808,269.93
Inspection and authentication fee 8,120,934.36 6,718,245.74
utility bill 5,776,873.50 4,976,797.24
Software royalty 1,166,276.97 1,291,273.00
Other expenses 9,380,518.80 8,978,566.02
Total 248,112,774.54 186,113,254.21
194
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
51. Financial expenses
Item Current Period Last Period
Interest expenditure 16,913,382.96 37,292,383.25
Less: Interest income 66,581,155.37 62,433,816.96
Add: exchange loss -9,470,041.33 19,162,463.83
Procedure charge expenditure 6,582,921.01 8,002,685.90
Discount expenditure -11,270,142.69 -7,719,706.12
Interest expense on lease liability 1,038,707.46
Total -62,786,327.96 -5,695,990.10
52. Other income
Item Current Period Last Period
Immediate refund of VAT for software products 6,981,697.33 2,548,001.17
Awards of high quality policy industrial internet for 2021 4,663,100.00
Award funds for supporting the development of China Sound Valley 4,385,000.00 544,200.00
Demonstration factory construction for the intelligent manufacturing of
3,759,493.66 3,132,911.40
intelligent air-conditioner
2022 provincial foreign trade funds (market development of key and brand
2,500,000.00
market enterprise)
Subsidy for employment stable 2,266,011.87 111,761.05
Supporting the industrial internet construction and scene application 2,000,000.00
Promotion of insurance 1,819,544.22
Demolition compensation of Changhong Meiling 1,291,710.56 1,069,128.53
Adaptability improvement on new coolants production 1,182,490.86 1,182,490.86
Dispersed to collected for tablet in Nanjing Port 1,165,095.00
2022 Provincial industrial development special funds 1,000,000.00
Support the linage development of enterprises in the region 716,000.00
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT AIR- 704,651.16 704,651.16
CONDITIONER)
Subsidy for industrial development policy from Hefei for first half of 2018 625,000.00 625,000.00
Personal tax handing fee refund 597,590.71 435,495.15
Changhong Air Conditioner- relocation of production base and upgrading &
573,333.33
expansion
Centre for external cooperation of the environmental protection 515,754.53 257,877.27
2021 Anhui Science & technology support funds for major special projects 500,000.00
2021 advanced manufacturing development policy 500,000.00
Award of innovation for the new third board 500,000.00
Subsidy for industrial development policy from Hefei for second half of 2019 447,137.50 447,137.50
Demolition compensation of Jiangxi Meiling 404,839.96 889,944.30
Municipal award and subsidy for the advanced manufacturing policy in first 373,062.50
195
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
half of 2020
District-level subsidy funds for advanced manufacturing policies in the
373,056.26
first half of 2021
Industrialization of intelligent white household appliances software platform
363,636.36 363,636.36
and typical application research and development
Policy funds for manufacturing a strong province, subsidy for equipment
312,500.00 312,500.00
for the technological transformation of industrial strong base
Subsidies for intelligent transformation & upgrading of enterprises from
302,837.50 302,837.50
the new industrialization policy in economic development zone
2020 subsidy for advancing technological transformation projects 267,962.50
Government subsidy for new plant construction - industrialization of
250,000.00 250,000.00
cryogenic refrigeration equipment
Subsidy for industrial development policy from Hefei for first half of 2020 217,300.00 217,300.00
Special funds for strategic emerging industry and high-end growth industry 206,896.55
2021 manufacturing strong provincial policy subsidy funds 203,750.00
2020 fund allocation for Anhui Province's triple innovation project 162,500.00
2020 supporting funds to support the innovation and development of
162,500.00
artificial intelligence industry
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special
152,823.25 152,823.24
project 2019)
Promoting the new industry (annual output of 0.6 million medium& large
152,206.26 152,206.26
volume environmental protection and energy saving freezer)
Upgrading technology transformation of AC production line 113,903.75 30,601.92
Equipment subsidy for the industrial base technical renovation from
117,500.00 117,500.00
Economic and Information Commission
Promotion of the energy-saving room air conditioner 105,154.62 105,154.62
Corporate policy funding 27,000,000.00
Loan discount 3,000,000.00
Subsidy of the featured dual innovation vehicle in economic development
2,000,000.00
zone of Hefei
VAT refund 2019 1,635,266.39
Economic Development Zone Industrialization Policy Award and
1,140,400.00
Supplementary Funds in 2019
Hefei City 2020 smart home appliance (home) technology award and
1,000,000.00
subsidy
Reward for the enterprise with fast revenue growth 500,000.00
Technical transformation of the Athena project 474,375.00
2018 special funds for industrial development of Zhongshan -topic of
132,861.90
technology transformation
Other petty projects 5,389,351.57 6,414,039.35
Total 48,325,391.81 57,250,100.93
53. Investment income
196
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Long-term equity investment income by equity method 8,971,315.55 -16,047,810.77
Investment income obtained from disposal of Trading
7,825,971.39 65,827,326.06
financial assets
Income from financial products 1,784,208.22 2,754,190.61
Investment income of other non-current financial assets
76,200.80
during holding period
The termination of income recognition for financial
-10,198,142.54
assets measured by amortized cost
Interest income from debt investment during the holding
5,356,708.33
period
Total 13,816,261.75 52,533,705.90
54. Changes in fair value gains
Item Current Period Last Period
Trading financial assets 30,187,709.04 -11,569,560.58
Including :Income of fair value changes from derivative
29,478,307.89 -18,496,182.50
financial instruments
Interest accrual for wealth management
709,401.15 6,926,621.92
products
Trading financial liability -26,624,972.00 1,837,906.29
Including: Income of fair value changes from derivative
-26,624,972.00 1,837,906.29
financial instruments
Total 3,562,737.04 -9,731,654.29
55. Credit impairment loss
Item Current Period Last Period
Note receivable bad debt loss 546,876.51
Account receivable bad debt loss -50,863,838.62 -15,669,395.22
Other account receivable bad debt loss 397,219.49 1,514.82
Total -50,466,619.13 -15,121,003.89
56. Assets impairment loss
Item Current Period Last Period
Loss on inventory valuation -28,983,106.69 -43,310,366.42
Impairment loss on contractual assets -808,716.15
Total -29,791,822.84 -43,310,366.42
57. 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 8,358,775.10 -208,978.90 8,358,775.10
197
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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
8,358,775.10 -208,978.90 8,358,775.10
for sale
Including: Income from fixed assets
4,141,767.54 -208,978.90 4,141,767.54
disposal
Income from intangible assets
4,217,007.56 4,217,007.56
disposal
Total 8,358,775.10 -208,978.90 8,358,775.10
58. Non-operation revenue
Amount reckoned
into non-recurring
Item Current Period Last Period
gains/losses in
Current Period
Income of penalty 567,772.74 854,054.88 567,772.74
Profit from disposal of non-current assets 321,759.27 117,430.00 321,759.27
Other 2,021,355.78 4,890,835.83 2,021,355.78
Total 2,910,887.79 5,862,320.71 2,910,887.79
59. Non-operating expenditure
Amount reckoned into non-
Item Current Period Last Period recurring gains/losses in
Current Period
Non-current asset retirement
1,142,293.89 645,034.44 1,142,293.89
losses
Penalty and late fee 2,264.75 34,829.07 2,264.75
Other 1,188,402.19 80,729.11 1,188,402.19
Total 2,332,960.83 760,592.62 2,332,960.83
60. Income tax expenses
Item Current Period Last Period
16,329,432.39 21,302,275.31
Current income tax
Deferred Income Tax -26,445,005.85 15,784,696.07
Total -10,115,573.46 37,086,971.38
61. Other comprehensive income
Found more in 43. Other comprehensive income in VI
62. Items of cash flow statement
198
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the 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 31,397,968.22 40,956,209.27
Cash deposit, deposit 19,397,785.91 9,420,313.94
Collection of restriction fund 14,531,658.71 22,688,330.93
Rental income 3,346,435.18 2,178,291.38
Compensations 1,724,086.13 2,605,385.53
Petty cash collection 62,136.33 81,130.50
Other 2,347,265.99 1,712,766.06
Total 72,807,336.47 79,642,427.61
2) Cash paid for other activities relating to operation
Item Current Period Last Period
Market expenses 82,409,839.91 103,773,740.45
Rental fee 52,784,034.29 57,814,676.41
Petty cash, deposit, Cash deposit 22,367,764.50 27,666,562.51
Service support fee 15,879,324.80 31,063,421.76
Inspection and certification fee, certification
14,909,635.84 11,298,717.35
charge and reviewing fee
Technological cooperation costs and consulting
13,589,880.67 6,098,074.18
charge
Repair fee 13,247,556.80 8,129,554.19
Travel expenses, meeting fees and exhibition
13,095,827.32 23,609,336.42
fees
Business activity fee 10,637,980.89 11,888,247.82
Transportation and vehicle costs 7,774,128.45 8,370,198.29
Handling fee 5,441,203.36 8,259,452.97
Advertising fee 4,240,519.54 2,917,266.75
Office expenses 3,180,729.46 3,172,145.59
Labor fee 1,277,408.41 2,003,400.19
Communication costs 1,061,789.96 1,073,434.97
Board expenses 277,495.67 295,899.82
Convert to restricted funds 85,623,704.49 397,877,095.29
Other expenses 43,501,646.82 57,185,190.67
Total 391,300,471.18 762,496,415.63
3) Cash received from other activities relating to investment
199
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Interest income arising from bank savings 64,456,820.07 69,755,550.75
Cash deposit 1,182,376.24 925,112.51
Income of forward exchange settlement 8,021.82 67,706,807.74
Total 65,647,218.13 138,387,471.00
4) Cash paid for other activities relating to investment
Item Current Period Last Period
Loses of forward exchange settlement 7,635,033.86 47,506.93
Total 7,635,033.86 47,506.93
5) Cash received from other activities relating to financing
Item Current Period Last Period
Meiling series (internal) bill discounting
84,181.37 4,675,857.30
fundraising
Total 84,181.37 4,675,857.30
6) Cash paid for other activities relating to financing
Item Current Period Last Period
Lease liability principal and interest 7,095,354.40 4,097,081.48
Meiling series (internal) bill discounting
2,341,617.17
fundraising
Intermediary service fee 1,345,000.00
Payment for B share repurchase 737,262.35 7,032,876.30
Financing lease 175,323.88 175,323.88
Handling charge of dividend 36,509.97 36,415.52
Convert to restricted funds 420,619,026.50
Total 432,350,094.27 11,341,697.18
(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 72,694,901.46 55,696,358.16
Add: provision for depreciation of assets 60,861,695.16 32,172,406.39
Depreciation of fixed assets, consumption of oil gas
112,530,324.02 108,832,291.21
assets and depreciation of productive biological assets
Depreciation of right-of-use assets 6,170,422.64 3,296,977.97
Amortization of intangible assets 74,908,844.79 70,475,493.03
Amortization of long-term retained expense 19,080.92
200
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Loss from disposal of fixed assets, intangible assets and
-8,358,775.10 208,978.90
other long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is
-820,534.62 527,604.44
listed with “-”)
Loss from change of fair value (gain is listed with “-”) -3,562,737.04 9,731,654.29
Financial expense (gain is listed with “-”) -59,137,813.74 -5,978,969.88
Investment loss (gain is listed with “-”) -13,816,261.75 -52,533,705.90
Decrease of deferred income tax assets (increase is
-25,663,712.30 19,447,731.84
listed with “-”)
Increase of deferred income tax liabilities (decrease is
-781,293.55 -3,655,216.54
listed with “-”)
Decrease of inventories (increase is listed with “-”) -262,649,097.49 -587,211,166.68
Decrease of operational accounts receivable (increase is
-410,183,298.77 -988,302,199.73
listed with “-”)
Increase of operational accounts receivable (decrease is
1,103,933,518.50 748,795,645.68
listed with “-”)
Other -71,092,045.78
Net cash flow arising from operation activities 575,053,217.35 -588,496,116.82
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 5,237,646,245.54 4,767,551,500.75
Less: Opening balance of cash 5,840,194,931.57 6,425,529,815.10
Add: Balance at period-end of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -602,548,686.03 -1,657,978,314.35
(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 5,237,646,245.54 4,767,551,500.75
Including: cash in stock 31,633.86 89,912.16
Bank deposits available for payment at any time. 5,236,987,879.70 4,083,081,613.97
Other monetary fund available for payment at any time 626,731.98 684,379,974.62
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at period-end 5,237,646,245.54 4,767,551,500.75
201
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Including: using the restricted cash and cash equivalents of the
parent company or subsidiary of the group
63. Assets with ownership or the right to use restricted
Book value at period-
Item Reasons
end
Monetary fund 931,910,598.85 Margin, Fixed Deposit, Frozen Funds
Receivables financing note 1 515,578,650.05 Pledged
Investment real estate note 2 3,368,611.31 Mortgage
Fixed assets note 2 342,747,272.11 Mortgage
Intangible assets note 2 276,909,965.43 Mortgage
Total 2,070,515,097.75
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. 34. Long-term loans.
64. Foreign currency
(1) Foreign currency
Ending foreign currency Ending RMB converted
Item Exchange rate
balance balance
Monetary fund 260,304,768.74
Including: USD 31,417,800.49 6.7114 210,857,426.21
Euro 525,770.71 7.0084 3,684,811.44
GBP 78.79 8.1365 641.07
AUD 8,666,462.89 4.6145 39,991,393.01
HKD 3,744.65 0.8552 3,202.42
Pakistan Rupi 38,723,401.72 0.0327 1,266,255.24
IDR 7,009,051,052.00 0.000451 3,161,082.02
PHP 11,010,331.41 0.1217 1,339,957.33
Account receivable 776,926,671.15
Including: USD 95,324,543.66 6.7114 639,761,142.32
Euro 1,893,377.78 7.0084 13,269,548.83
GBP 44,831.45 8.1365 364,771.09
202
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Ending foreign currency Ending RMB converted
Item Exchange rate
balance balance
AUD 9,845,522.00 4.6145 45,432,161.27
KRW 1,673,068,607.00 0.005155 8,624,668.67
Pakistan Rupi 1,581,761,874.44 0.0327 51,723,613.29
IDR 35,381,410,841.21 0.000451 15,957,016.29
PHP 14,739,107.58 0.1217 1,793,749.39
Other account receivable 6,779,003.68
Including: USD 795,202.49 6.7114 5,336,921.99
Pakistan Rupi 13,780,264.89 0.0327 450,614.66
IDR 2,019,467,700.00 0.000451 910,779.93
PHP 663,000.00 0.1217 80,687.10
Account payable 59,980,957.43
Including: USD 770,106.51 6.7114 5,168,492.83
Euro 13,419.32 7.0084 94,047.96
Pakistan Rupi 997,494,603.03 0.0327 32,618,073.52
IDR 33,734,917,734.00 0.000451 15,214,447.90
PHP 56,580,897.42 0.1217 6,885,895.22
Other account payable 15,476,885.84
Including: USD 100,496.42 6.7114 674,471.67
Pakistan Rupi 326,408,714.37 0.0327 10,673,564.96
IDR 8,729,895,798.00 0.000451 3,937,183.00
PHP 1,574,907.22 0.1217 191,666.21
(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.
65. Hedging
The Company adopts forward foreign exchange contracts to hedge the risk of exchange rate
fluctuations.The Company designates the purchased forward foreign exchange contracts as hedging
instruments, and manages them in accordance with the hedge accounting method, and evaluates the
hedged items of unrecognized asset and liability items, such as unrecognized definite commitments, on
203
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
the balance sheet date. The Company adopts the ratio analysis method to evaluate the hedging
effectiveness.
Hedging instrument is as follows:
Item of
Book value of the hedging balance sheet
Item
instrument on 30 June 2022 with hedging
instrument
Fair value hedges
Exchange rate risk-forward foreign exchange contracts and Trading
47,475,394.08
definite commitments not yet confirmed, etc. financial assets
Tradable
Exchange rate risk-forward foreign exchange contracts and
38,929,244.41 financial
definite commitments not yet confirmed, etc.
liabilities
66. Government subsidy
Amount
Item Amount Item reckoned into
current gain/loss
VAT refund on software products 6,981,697.33 Other income 6,981,697.33
Awards of high quality policy industrial internet
4,663,100.00 Other income 4,663,100.00
for 2021
Award funds for supporting the development of
4,385,000.00 Other income 4,385,000.00
China Sound Valley
2022 provincial foreign trade funds (market
2,500,000.00 Other income 2,500,000.00
development of key and brand market enterprise)
Subsidy for employment stable 2,266,011.87 Other income 2,266,011.87
Supporting the industrial internet construction and
2,000,000.00 Other income 2,000,000.00
scene application
Promotion of insurance 1,819,544.22 Other income 1,819,544.22
Upgrading technology transformation of AC
1,385,600.00 Deferred income 113,903.75
production line
Dispersed to collected for tablet in Nanjing Port 1,165,095.00 Other income 1,165,095.00
2022 Provincial industrial development special
1,000,000.00 Other income 1,000,000.00
funds
Support the linage development of enterprises in
716,000.00 Other income 716,000.00
the region
Personal tax handling fee refund 597,590.71 Other income 597,590.71
2021 Anhui Science & technology support funds
500,000.00 Other income 500,000.00
for major special projects
2021 advanced manufacturing development policy 500,000.00 Other income 500,000.00
Award of innovation for the new third board 500,000.00 Other income 500,000.00
Subsidy of advanced manufacturing policy for
57,100.00 Deferred income 2,379.17
second half of 2021
Other petty projects 4,687,444.72 Other income 4,687,444.72
Total 35,724,183.85 34,397,766.77
VII. Changes of consolidation rage
204
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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
Difference
Amountof
between the
investment
disposal price
gain/loss
and the share of
transferred from
Basisfor net assets of the
Equity Share other
Equity disposal Pointo atwhich determining the subsidiary at the
Subsidiary disposal disposalratio comprehensive
method thecontrolislost pointat which the consolidate
price （%） incomethat
controlislost financial
related to equity
statement
investmentof
corresponding to
original
the disposal of
subsidiary
the investment
Completed
Jinan Xiangyou Liquidation the
Electric Appliances 93.4 & 2022.02 liquidation
Marketing Co., Ltd cancellation &
cancellation
6. Subsidiary newly established: nil
7. Subsidiary merger by absorption
Name of company Equity ratiobeforeabsorption (%) Timeforabsorption
Zhengzhou Meiling Electric Appliances Marketing
100 March 2022
Co., Ltd
In March 2022, consolidation by merger, Hefei Meiling Group Holdings Limited purchased 100% equity of Zhengzhou
Meiling Electric Appliances Marketing Co., Ltd (hereinafter referred to as Zhengzhou Meiling) from Hefei Meiling
Electric Appliances Marketing Co., Ltd. As of 30 June 2022, the industrial & commercial and tax cancellation under the
name of Zhengzhou Meiling has not been completed.
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Mainoffice Registration Business Shareholding ratio（%)
Subsidiary Acquireby
place place nature Directly Indirectly
Zhongke Meiling Cryogenic Technology Manufacturing Investment
Hefei Hefei 63.2683
Co., Ltd1) and sales establishment
205
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Mainoffice Registration Business Shareholding ratio（%)
Subsidiary Acquireby
place place nature Directly Indirectly
Software
Sichuan Hongmei Intelligent Technology Investment
Mianyang Mianyang 100
Co., Ltd.2) development establishment
Manufacturing Investment
Mianyang Meiling Refrigeration Co., Ltd.3) Mianyang Mianyang 95 5
and sales establishment
Jiangxi Meiling Electric Appliance Co., Ltd. Jingdezhen Jingdezhen Manufacturing Investment
98.75 1.25
4) and sales establishment
Software
Hefei Meiling Wulian Technology Co., Investment
Hefei Hefei 100
Ltd5） development establishment
Hefei Meiling Electric Appliances Investment
Hefei Hefei Sales 99.82 0.18
Marketing Co., Ltd6) establishment
Wuhan Meizhirong Electric Appliances Investment
Wuhan Wuhan Sales 92
Marketing Co., Ltd7) establishment
Enterprise
Hefei Meiling Nonferrous Metal Products Manufacturing combined not
Hefei Hefei 100
Co., Ltd.8) and sales under the same
control
Enterprise
Changhong Meiling Ridian Technology Manufacturing combined
Zhongshan Zhongshan 99.0361
Co., Ltd.9） and sales under the same
control
CHANGHONG MEILING Jakapta Jakapta Investment
Sales 100
ELECTRICINDON ESIA,PT 10） establishment
ChanghongRubaTradingCompany Pakistan Pakistan Investment
Sales 60
（Private）Limited 11) establishment
Enterprise
Sichuan Changhong Air-conditioner Co., Manufacturing combined
Mianyang Mianyang 100
Ltd12) and sales under the same
control
Enterprise
Manufacturing combined
Zhongshan Changhong Electric Co., Ltd13) Zhongshan Zhongshan 90 10
and sales under the same
control
Enterprise
Manufacturing combined not
Hefei Meiling Group Holdings Limited14) Hefei Hefei 100
and sales under the same
control
Enterprise
Meiling Equator Household Appliance Manufacturing combined not
Hefei Hefei 100
(Hefei) Co., Ltd.15) and sales under the same
control
Enterprise
Manufacturing combined not
Hefei Equator Appliance Co., Ltd16) Hefei Hefei 100
and sales under the same
control
Ground Energy Heat Pump Tech. Co., Manufacturing Investment
Mianyang Mianyang 51
Ltd.17) and sales establishment
Ground Energy Heat Pump Tech. Manufacturing Investment
Zhongshan Zhongshan 51
(Zhongshan) Co., Ltd. 18) and sales establishment
Meiling CANDY Washing Machine Co., Investment
Hefei Hefei R&D, sales 60
Ltd19） establishment
Guangzhou Changhong Trading Co., Guangzhou Guangzhou Investment
Sales 100
Ltd.20） establishment
Hebei Hongmao Daily Appliance Handan Handan Manufacturing Investment
99.0361
Technology Co., Ltd.21） and sales establishment
Manufacturing Investment
Anhui Tuoxing Technology Co., Ltd.22） Hefei Hefei 63.2683
and sales establishment
206
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Mainoffice Registration Business Shareholding ratio（%)
Subsidiary Acquireby
place place nature Directly Indirectly
CH-Meiling.International (Philippines) Investment
Philippines Philippines Sales 100
Inc.23） establishment
Hefei Changhong Meiling Life Appliances Investment
Hefei Hefei Sales 70
Co., Ltd. 24） establishment
Anhui Ling'an Medical Equipment Co., Ltd Manufacturing Investment
Lu'an Lu'an 63.2683
25） and 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 60 million yuan upon the establishment, among which, the Company made capital contribution of 42 million
yuan (including the assets in specie at the consideration of35,573,719.70 yuan as evaluated by Beijing Zhongzheng
Appraisal Co., Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of 6,426,280.30
yuan) accounting for 70% of the aforesaid registered capital, and TIPC made capital contribution of 18 million yuan 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.
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 7thBOD 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 96, 431,978.25 yuan 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
207
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 2ndBOD 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 5 million yuan, including 4.95 million yuan contributed by Changhong Meiling Company in cash,
accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed 50000 yuan in cash
with 1% of the register capital occupied. The above mentioned register capital have been verified by verification report
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 50 million yuan upon establishment, of which, the Company invested 45 million yuan, accounting
for 90% of the registered capital; Zhongke Meiling Company invested 5 million yuan, 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 50 million yuan in capital of Mianyang Meiling,
of which 95 million yuan invested by the Company, a 95% of total register capital while 5 million yuan 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., Ltd., 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 50 million yuan, 49.375 million yuan invested by the Company, 98.75% in total register capital
while 0.625 million yuan invested by Mianyang Meiling, a 1.25% in total register capital occupied. The initial investment
10.50 million yuan was received dated 13 May 2011 with 10 million yuan from the Company and 0.5 million yuan 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 39.5 million yuan was fully funded on 28 July
208
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
2011, the Company contributed 39.375 million yuan while Mianyang Meiling Company invested 125,000 yuan, 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 10 million yuan, and it is the subsidiary of the Company with fully-owned
establishment. On 19 March 2019, 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 10 million yuan, including 9.9 million yuan invested by the Company, a 99% of the registered capital;
Mianyang Meiling Company contributed 0.1 million yuan, 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 45 million yuan, registered
capital amounting to 55 million yuan, including 54.9 million yuan contributed by the Company, a 99.82% of the registered
capital, while Mianyang Meiling invested 0.1 million yuan, 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.
7) Wuhan Meizirong Electrical Marketing Co., Ltd (hereinafter referred to as Wuhan Meizirong) was established dated
10 January 2011 with registered capital of 5 million yuan; Meiling Marketing invested 4.60 million yuan, accounted for 92%
of the registered capital.
8) 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, 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 24,286,808.00 yuan after transference, and was not the joint-venture
any more.
9) 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 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
209
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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.
On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Chang yuan 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.
10) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Meiling) 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.
11) 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
210
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(“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%.
12) 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 200 million yuan upon establishment, of which, Sichuan Changhong invested 298 million yuan
( 210,088,900 yuan invested by monetary capital while 87,911,100 yuan invested by real material), equivalent to 198
million yuan shares, accounting for 99% of the registered capital; and Changhong Chuangtou invested 3 million yuan,
accounting for 1% of the registered capital with equivalent of 2 million yuan shares. The registered capital receipt was
verified by the verification report [CGYYZ (2008) No. 177] of Sichuan Guang yuan 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%.
13) 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 72 million yuan, including 69.3 million yuan biding for the estate/non-estate from original
Zhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of 2.7 million yuan, accounting for 90% of the
registered capital; Chine Minmetals invested 8 million yuan in monetary capital accounting 10% of the registered capital.
The Company changed its name originally from Guangdong Changhong Electric Co., Ltd in July 2003. In December
2009, the Company obtained 90% equity of Zhongshan Changhong by consolidated under same control. 10% equity held
by China Minmetals has been transferred by Changhong Air-conditioner on April 11, 2010. On 25 May 2014, the
Company increased 36 million yuan to Zhongshan Changhong, and Changhong AC increased 4 million yuan. 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 64
million yuan to Zhongshan Changhong according to the existing shareholding ratio, among which the capital increase of
the Company was 57.6 million yuan, and the capital increase of Changhong Air Conditioning was 6.4 million yuan. After
the completion of this capital increase, the registered capital Zhongshan Changhong shall increase to184 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
211
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
and its wholly-owned subsidiary Changhong Air Conditioning increased capital of 150 million yuan to Zhongshan
Changhong according to the existing shareholding ratios, of which the Company increased capital of 135 million yuan,
Changhong Air-Conditioning increased capital of 15 million yuan. After the completion of capital increase, the registered
capital of Zhongshan Changhong has increased to 334 million yuan. The Company’s and Changhong’s shareholding
ratios in Zhongshan Changhong remain unchanged at 90% and 10%, of which the Company funded 300.6 million yuan,
accounting for 90% of the registered capital, while Changhong Air Conditioning funded 33.4 million yuan, accounting
for 10% of the registered capital.
14) 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 113.2 million yuan. 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 80 million yuan, and has been verified by the [AD (2010) YZD No. 016] from Anhui Auding CPAs
Co., Ltd.
15) 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 24,793,200 yuan 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.
16) Hefei Equator Appliance Co., Ltd. (hereinafter referred to as Equator Appliance) was jointly set up by original Meiling Group
and Yingkaite Appliance on September 26, 2007. Its register capital was 12 million yuan, 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.
17) Hong Yuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hong Yuan 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 Hengyou yuan 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; Hengyou yuan Technology Development Group Co., Ltd. invested
212
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
24.5 million yuan in cash, a 49% in registered capital.
18) Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hong yuan Zhongshan)
was established and invested on 18 July 2017 with registered capital of 15 million yuan, The Hong Yuan 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 shareholders of the Hong yuan Zhongshan decided to increase capital of 30 million yuan, and contributed by the
shareholder Hong Yuan Ground Energy; thus registered capital of Hong yuan Zhongshan up to 45 million yuan
19) 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.
20) 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
21) 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.
22) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) 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 5 million yuan contributed.
23) 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 June 30, 2021, the Company has invested US$ 1,000,000,
24) Hefei Changhong Meiling Life Electric Co., Ltd was established on 24 December 2020, jointly established by the
Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership). the Company 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. The paid-in capital contribution from the Company and
Ningbo Hongling Enterprise Management Partnership (Limited Partnership) has been completed on January 21, 2021
and on January 18, 2021 respectively.
25) 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. On
June 29, 2021, Zhongke Meiling actually contributed 10 million yuan, accounting for 100% of the registered capital.
(2) Major non-wholly-owned subsidiary
213
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Dividend
Gains/losses attributable distributed to Balance of
Shareholding
Subsidiary to minority in Current minority minority’s interest
ratio of minority
Period announced in at period-end
Current Period
Zhongke Meiling 36.7317% 12,847,677.86 21,318,560.00 82,651,413.42
Ground Energy 49.00% -2,799,196.80 18,254,403.84
Ridian
0.9639% 17,674.12 1,336,747.61
Technology
Meiling Life
30.00% 2,626,607.19 26,736,159.74
Appliances
(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary Non-current Non-current
Currentassets Totalassets Currentliability Totalliabilities
assets liability
Zhongke Meiling 304,506,787.02 155,860,330.99 460,367,118.01 218,415,104.39 16,938,268.93 235,353,373.32
Ground Energy 139,050,914.69 21,187,129.74 160,238,044.43 122,730,504.51 253,654.54 122,984,159.05
Ridian
242,076,461.93 44,379,277.31 286,455,739.24 147,021,172.76 747,001.92 147,768,174.68
Technology
Meiling Life
484,426,059.03 302,642.82 484,728,701.85 395,608,169.40 395,608,169.40
Appliances
(Continued)
Opening balance
Subsidiary Non-current Non-current
Currentassets Totalassets Currentliability Totalliabilities
assets liability
Zhongke Meiling 371,876,985.25 153,246,440.33 525,123,425.58 260,324,038.65 16,724,150.21 277,048,188.86
Ground Energy 167,092,910.84 23,932,195.59 191,025,106.43 147,765,923.82 292,650.70 148,058,574.52
Ridian Technology 256,926,013.09 46,283,555.98 303,209,569.07 165,637,349.70 718,345.11 166,355,694.81
Meiling Life
421,039,031.17 169,482.39 421,208,513.56 340,843,338.42 340,843,338.42
Appliances
(Continued)
Current Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke Meiling 235,704,905.75 34,977,067.97 34,977,067.97 -22,750,957.05
Ground Energy 50,705,949.97 -5,712,646.53 -5,712,646.53 -63,167,443.52
Ridian Technology 121,903,975.39 1,833,690.30 1,833,690.30 -2,113,312.10
Meiling Life
Appliances
618,374,856.05 8,755,357.31 8,755,357.31 47,550,153.24
214
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(Continued)
Last Period
Subsidiary Total comprehensive Cash flow from
Operation income Net profit
income operation activity
Zhongke Meiling 271,384,729.79 51,828,122.35 51,828,122.35 44,525,447.06
Ground Energy 49,226,548.73 -10,132,057.22 -10,132,057.22 -57,732,313.13
Ridian Technology 152,108,811.31 -2,059,812.01 -2,059,812.01 -206,486,307.38
Meiling Life
Appliances
486,144,189.56 17,370,883.75 17,370,883.75 61,431,363.80
(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 Registe Business investment of
Joint venture or associate enterprise office place r place nature Direc Indir joint venture or
tly ectly associate
enterprise
Associated companies：
1.Changhong Ruba Electric Company Lahore, Manufacturi
Lahore 40.00 Equity
(Private)Ltd. Pakistan ng and sales
2.Hefei Xingmei Assets Management Rental,
Hefei Hefei 48.28 Equity
Co., Ltd. agency
3.Sichuan Zhiyijia Network Technology
Mianyang Mianyang Sales 50.00 Equity
Co., Ltd.
4.Hong Yuan Ground Energy Heat Tech. R & D, sales,
Mianyang Mianyang 49.00 Equity
Co., Ltd after-sales
5.Sichuan Tianyou Guigu Technology Manufacturi
Mianyang Mianyang 25.00 Equity
Co., Ltd ng and sales
R&D,
6.Chengdu Guigu Environmental Tech.
Chengdu Chengdu manufacturin 25.00 Equity
Co., Ltd
g and sales
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
215
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Ending balance/Current Period
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environme
Company(Pr Manageme Technology Heat Tech. Technology ntal Tech.
ivate)Ltd. nt Co., Ltd. Co., Ltd. Co., Ltd Co., Ltd Co., Ltd
Current assets 115,822,999.43 44,689,824.37 4,539,911,822.65 39,312,447.05 13,512,755.81 44,124,500.11
Including: cash and
7,300,923.91 20,072,152.50 2,377,264,858.26 26,568.04 5,633,698.08 19,283,218.08
cash equivalent
Non-current assets 34,151,444.94 6,357,713.73 7,486,157.09 12,352.49 1,322,469.48
Total assets 149,974,444.37 44,689,824.37 4,546,269,536.38 46,798,604.14 13,525,108.30 45,446,969.59
Current liability 177,107,936.27 4,399,289.56 4,453,320,440.26 5,694,974.02 1,350,530.81 10,727,625.88
Non-current
1,372,236.18 2,696,009.39
liability
Total liabilities 177,107,936.27 4,399,289.56 4,454,692,676.44 5,694,974.02 1,350,530.81 13,423,635.27
Minority's interest 1,100,054.64
Equity attributable
to shareholder of -27,133,491.90 40,290,534.81 91,576,859.94 41,103,630.12 12,174,577.49 30,923,279.68
parent company
Share of net assets
measured by -10,853,396.76 19,452,270.21 45,788,429.97 20,140,778.76 3,043,644.37 7,730,819.92
shareholding
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized profit of
the internal
9,392,876.21 80,105.51 5,418.64
downstream
transactions
Unrealized profit of
the internal
upstream
transactions
Other 10,853,396.76
Book value of the
equity investment
19,452,270.21 37,217,431.04 20,060,673.25 3,043,644.37 9,141,629.21
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 114,113,833.32 - 5,469,059,501.77 94,133.06 3,778,843.34 24,509,987.79
Financial expenses 70,820.09 -27,341.72 -22,176,910.19 267.75 -57,394.00 -289,738.80
Income tax
1,215,849.99 3,252,674.65 554,942.41
expenses
Net profit -14,180,304.24 9,758,023.96 1,646,585.39 -1,163,205.15 260,813.27 123,763.39
Other
comprehensive 2,115,738.30
income
Total
comprehensive -12,064,565.94 9,758,023.96 1,646,585.39 -1,163,205.15 260,813.27 123,763.39
income
Dividend received 5,069,400.00
216
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Ending balance/Current Period
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environme
Company(Pr Manageme Technology Heat Tech. Technology ntal Tech.
ivate)Ltd. nt Co., Ltd. Co., Ltd. Co., Ltd Co., Ltd Co., Ltd
from associate
enterprise in
Current Period
(Continued)
Opening balance/Last Period
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environmen
Company(Pr Manageme Technology Heat Tech. Technology tal Tech.
ivate)Ltd. nt Co., Ltd. Co., Ltd. Co., Ltd Co., Ltd Co., Ltd
Current assets 89,100,592.52 44,306,769.36 3,562,320,255.30 39,551,631.60 12,815,224.66 49,157,432.66
Including: cash and
3,601,992.73 15,092,065.72 1,735,103,036.41 41,161.98 6,480,537.53 28,252,926.12
cash equivalent
Non-current assets 37,062,073.18 2,831,773.02 7,359,768.31 8,286,398.47 12,352.49 1,325,807.70
Total assets 126,162,665.70 47,138,542.38 3,569,680,023.61 47,838,030.07 12,827,577.15 50,483,240.36
Current liability 141,231,591.66 6,054,518.27 3,478,330,845.92 5,571,194.80 913,812.93 16,058,351.93
Non-current
1,418,903.14 2,525,317.50
liability
Total liabilities 141,231,591.66 6,054,518.27 3,479,749,749.06 5,571,194.80 913,812.93 18,583,669.43
Minority's interest 1,102,582.39
Equity attributable
to shareholder of -15,068,925.96 41,084,024.11 89,930,274.55 42,266,835.27 11,913,764.22 30,796,988.54
parent company
Share of net assets
measured by -6,027,570.38 19,835,366.84 44,965,137.28 20,710,749.28 2,978,441.06 7,699,247.14
shareholding
Adjustment
--Goodwill 821,877.28 1,416,227.93
Unrealized profit of
the internal
11,702,988.94 80,635.11 4,252.12 7,510.11
downstream
transactions
Unrealized profit of
the internal
upstream
transactions
Other 6,027,570.38
Book value of the
equity investment
19,835,366.84 34,084,025.62 20,630,114.17 2,974,188.94 9,107,964.96
for associate
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
217
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Opening balance/Last Period
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environmen
Company(Pr Manageme Technology Heat Tech. Technology tal Tech.
ivate)Ltd. nt Co., Ltd. Co., Ltd. Co., Ltd Co., Ltd Co., Ltd
Operation income 129,037,750.98 5,593,676,163.39 1,673,087.14 718,023.89 7,596,668.97
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 -1,875,733.81 -226,371.54 -1,079,748.77
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
(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 -129,133.66
--Other comprehensiveincome
-- Total comprehensiveincome -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
Hefei Meiling Solar Energy Technology Co., Ltd and Changhong Ruba Electric Company (Private) Ltd.
have losses above the quota.
(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
218
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 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 2022, the interest-bearing debts mainly referred to borrowing contracts at floating rate
denominated in RMB with total amount of 1,077,040,918.37 yuan, the floating rate loan contract
measured by RMB amounted as 188,000,000.00 yuan in total; 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
Fair value at period-end
Item
1st level 2nd level 3rd level Total
I. Continuous fair value
— — — —
measurement
(i) Trading financial assets 47,475,394.08 160,709,401.15 208,184,795.23
1.Financial assets measured
at fair value and whose 47,475,394.08 160,709,401.15 208,184,795.23
changes are included in
219
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Fair value at period-end
Item
1st level 2nd level 3rd level Total
current gains/losses
Including: Derivative
47,475,394.08 47,475,394.08
financial assets
Principal and Interest
of Wealth Management 160,709,401.15 160,709,401.15
Products
(ii) Other non-current
38,239,153.07 537,961,488.43 576,200,641.50
financial assets
(iii) Receivables financing 1,380,100,294.09 1,380,100,294.09
Total assets continuously
47,475,394.08 198,948,554.22 1,918,061,782.52 2,164,485,730.82
measured at fair value
(iv) Trading financial
38,929,244.41 38,929,244.41
liability
1. Financial liabilities
measured by fair value and
38,929,244.41 38,929,244.41
with variation reckoned into
current gains/losses
Including: Derivative
38,929,244.41 38,929,244.41
financial liability
Total liabilities
continuously measured at 38,929,244.41 38,929,244.41
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 items with fair value measurement refer to the investment of Sichuan Changhong Group
Finance Co., Ltd and Huishang Bank Co., Ltd. As the unlisted equity instrument, the fair value are
estimated using a range of valuation models, the assumptions used are not supported by observable
220
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
market prices or interest rates. We believes that the fair value and their changes estimated by
valuation techniques are reasonable and are the most appropriate values at the balance sheet date.
XI. Related parties and related transaction
(I) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Share- Voting
Regist
Controlling shareholder and Business holding rights ratio
ration Registered capital
ultimate controller nature ratio in the in the
place
Company Company
Sichuan Changhong Electric Miany Manufactur
4,616,244,222.00 27.36% 27.36%
Co., 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 holds90% equity interests of Sichuan Changhong Electronic Holding Group,
which means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
Decrea
Increase
Controlling shareholder Opening balance se 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-
period-end
beginning
Sichuan Changhong Electric Co.,
281,832,434.00 281,832,434.00 27.36% 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:
221
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Joint venture and associated enterprise Relationship with the company
Hefei Xinmeitai Energy Tech. Co., Ltd. Associated enterprise of subsidiary Meiling Group
Associated enterprise of subsidiary Zhongshan
Changhong Ruba Electric Company(Private)Ltd
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 Air-
Hong Yuan Ground Energy Heat Tech. Co., Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Sichuan Tianyou Guigu Technology Co., Ltd
conditioner
Associated enterprise of subsidiary Changhong Air-
Chengdu Guigu Environmental Tech. Co., Ltd
conditioner
4. Other related party
Other related party Relationship with the company
Control by same controlling shareholder and ultimate
Hefei Changhong New Energy Technology 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. Control by same controlling shareholder and ultimate
Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Moulding Tech. Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Zhongshan Guanghong Moulding Tech. Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Huayi Compressor Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Changhong Grand-Pro Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hunan Grand-Pro Intelligent Tech. Company
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
CHANGHONG.ELECTRIC.(AUSTRALIA) Control by same controlling shareholder and ultimate
PTY.LTD. controller
CHANGHONG ELECTRIC MIDDLE EAST Control by same controlling shareholder and ultimate
FZCO controller
Control by same controlling shareholder and ultimate
Changhong Europe Electric s.r.o
controller
Control by same controlling shareholder and ultimate
Orion.PDP.Co.,ltd
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Device Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Electronic Products Co., Ltd.
controller
Chengdu Changhong Electronic Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Lejiayi Chain Management Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Mianyang Lejiayi Commercial Chain Co., Ltd.
controller
222
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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 Hongwei Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Real Estate Co., Ltd.
controller
Sichuan Changhong New Energy Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Control by same controlling shareholder and ultimate
Hefei Changhong Industrial Co., Ltd.
controller
Changhong International Holdings (Hong Kong) Control by same controlling shareholder and ultimate
Co., 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
Sichuan Changhong Jineng Sunshine Technology Control by same controlling shareholder and ultimate
Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Changhong Power Source Co., Ltd.
controller
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
081 Electronic Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Changhong International Hotel Co., Ltd.
controller
Sichuan Changhong International Travel Service Control by same controlling shareholder and ultimate
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 Service 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 Ailink Technology Co., Ltd.
controller
Sichuan Changhong Gerun Environmental Control by same controlling shareholder and ultimate
Protection 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
Sichuan Aoku Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Sichuan Ansify Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Guang yuan Hongcheng Industrial Co., Ltd.
controller
Mianyang Science & Technology City Big Data Control by same controlling shareholder and ultimate
Technology Co., Ltd. controller
Sichuan Hongcheng Construction Engineering Co., Control by same controlling shareholder and ultimate
ltd controller
223
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Other related party Relationship with the company
Sichuan Changhong Jiechuang Lithium Technology Control by same controlling shareholder and ultimate
Co., Ltd. controller
Control by same controlling shareholder and ultimate
Sichuan Qiruik Technology Co., Ltd.
controller
Sichuan Hongmofang Network Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Intelligent Technology Co., Control by same controlling shareholder and ultimate
Ltd. controller
Associated enterprise of other enterprise that have the same
Sichuan Baiku Technology Co., Ltd
controlling shareholder
Associated enterprise of other enterprise that have the same
Sichuan Hongyu Metal Manufacturing Co., Ltd.
controlling shareholder
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)
Purchasing
Sichuan Changhong Moulding Tech. Co., Ltd. 42,116.85 47,151.73
commodity
Purchasing
Sichuan Changxin Refrigeration Parts Co., Ltd. 31,020.99 29,722.49
commodity
Purchasing
Sichuan Changhong Jijia Fine Co., Ltd. 24,772.90 24,414.33
commodity
Purchasing
Sichuan Changhong Electric Co., Ltd. 20,658.40 31,287.06
commodity
Purchasing
Changhong Huayi Compressor Co., Ltd. 19,297.58 25,353.49
commodity
Purchasing
Sichuan Changhong Package Printing Co., Ltd. 7,365.41 6,913.07
commodity
Purchasing
Changhong Ruba Electric Company (Private) Ltd. 5,950.36 4,715.18
commodity
Purchasing
Sichuan Aichuang Science & Technology Co., Ltd. 5,142.93 5,848.84
commodity
Purchasing
Mianyang Highly Electric Co., Ltd. 4,722.10 18,284.13
commodity
Purchasing
Sichuan Changhong Electronic Products Co., Ltd. 1,608.43 1,797.64
commodity
Purchasing
Sichuan Changhong Precision Electronics Tech. Co., Ltd. 1,157.30 1,291.84
commodity
Purchasing
Sichuan Changhong Device Technology Co., Ltd. 506.18
commodity
Purchasing
Sichuan Ailink Technology Co., Ltd. 460.43 1,934.07
commodity
Purchasing
Hefei Changhong Industrial Co., Ltd. 279.42 293.88
commodity
Purchasing
Guangdong Changhong Electronics Co., Ltd. 230.87 254.71
commodity
Purchasing
Changhong International Holdings (Hong Kong) Co., Ltd. 202.84 672.2
commodity
Purchasing
Sichuan Zhiyijia Network Technology Co., Ltd. 178.81 625.8
commodity
224
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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)
Purchasing
Sichuan Changhong New Energy Technology Co., Ltd. 1.91 0.96
commodity
Purchasing
Sichuan Aoku Technology Co., Ltd. 1.82
commodity
Purchasing
Sichuan Changhong International Hotel Co., Ltd. 1.17
commodity
Purchasing
Zhongshan Guanghong Moulding Tech. Co., Ltd. 77.26
commodity
Purchasing
Hunan Grand-Pro Intelligent Tech. Company 75.66
commodity
Purchasing
081 Electronic Group Co., Ltd. 4.95
commodity
Sichuan Changhong Intelligent Manufacturing Purchasing
1.77
Technology Co., Ltd. commodity
Purchasing
Chengdu Guigu Environmental Tech. Co., Ltd 0.18
commodity
Total 165,676.70 200,721.24
2. Accept the services
225
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Related party Content Current Period Last Period
Sichuan Changhong Minsheng Logistics Accept the
305,201,100.86 224,557,352.50
Co., Ltd. services
Sichuan Service Exp. Appliance Service Accept the
109,136,334.24 93,499,148.00
Chain Co., Ltd. services
Sichuan Changhong Moulding Tech. Co., Accept the
11,317,706.85 66,728.31
Ltd. services
Sichuan Changxin Refrigeration Parts Accept the
7,029,331.97
Co., Ltd. services
Accept the
Sichuan Changhong Jijia Fine Co., Ltd. 6,655,258.49
services
Accept the
Sichuan Qiruik Technology Co., Ltd. 5,330,162.67
services
Accept the
Sichuan Jiahong Industrial Co., Ltd. 3,427,635.77 2,219,124.89
services
Accept the
Sichuan Hongxin Software Co., Ltd. 2,962,845.28 627,830.20
services
Accept the
Sichuan Changhong Electric Co., Ltd. 1,638,694.39 1,848,713.48
services
Sichuan Changhong Electronics Holding Accept the
385,868.01 410,018.80
Group Co., Ltd. services
Guangdong Changhong Electronics Co., Accept the
188,394.36 381,270.76
Ltd. services
Chengdu Guigu Environmental Tech. Co., Accept the
122,389.38
Ltd services
Sichuan Zhiyijia Network Technology Accept the
103,710.82 36,917.82
Co., Ltd. services
Sichuan Changhong Intelligent Accept the
637,456.72
Manufacturing Technology Co., Ltd. services 73,130.53
Sichuan Changhong Property Service Co., Accept the
1,256,815.72
Ltd. services 54,068.60
Sichuan Changhong International Hotel Accept the
14,824.98
Co., Ltd. services 36,610.36
Changhong International Holdings (Hong Accept the
2,433,372.32
Kong) Co., Ltd. services
Accept the
Sichuan Hongwei Technology Co., Ltd. 1,630,024.98
services
Sichuan Changhong International Travel Accept the
231,756.12
Service Co., Ltd. services
Sichuan Changhong Electronic Products Accept the
124,574.71
Co., Ltd. services
Sichuan Aichuang Science & Technology Accept the
13,211.15
Co., Ltd. services
Total 453,663,242.58 329,989,141.46
3. Purchase fuel and power
226
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Related party Content Current Period Last Period
Accept fuel
Sichuan Changhong Electric Co., Ltd. 13,321,804.51 10,484,815.16
power
Accept fuel
Hefei Changhong Industrial Co., Ltd. 580,338.87
power
Sichuan Hongran Green Energy Co., Accept fuel
537,960.95 572,392.86
Ltd. power
Guangdong Changhong Electronics Co., Accept fuel
285,882.21 520,124.75
Ltd. power
Hefei Changhong New Energy Accept fuel
163,503.46 172,184.57
Technology Co., Ltd. power
Accept fuel
Changhong Huayi Compressor Co., Ltd. 106,975.22 202,230.10
power
Sichuan Changhong Property Service Accept fuel
13,468.50 12,564.80
Co., Ltd. power
Total 15,009,933.72 11,964,312.24
4. Sales of goods
Current Period Last Period
Related party Content (in 10 thousand (in 10 thousand
Yuan) Yuan)
Sales of
Sichuan Zhiyijia Network Technology Co., Ltd. 343,787.59 328,665.84
goods
Sales of
CHANGHONG(HK)TRADINGLIMITED 17,413.91 13,687.72
goods
Sales of
Changhong International Holdings (Hong Kong) Co., Ltd. 8,390.66 10,567.62
goods
Sales of
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD 7,001.05 5,310.94
goods
Sales of
Orion.PDP.Co.,ltd 2,814.00 1,985.69
goods
Sales of
Changhong Ruba Electric Company (Private) Ltd. 1,028.84 2,356.10
goods
Sales of
CHANGHONG ELECTRIC MIDDLE EAST FZCO 446.27 143.65
goods
Sales of
Changhong Europe Electric s.r.o 305.51 5,608.18
goods
Sales of
Sichuan Service Exp. Appliance Service Chain Co., Ltd. 302.53 293.76
goods
Sales of
Lejiayi Chain Management Co., Ltd. 104.10 18.04
goods
Sales of
Sichuan Tianyou Guigu Technology Co., Ltd 69.49 50.64
goods
Sales of
Sichuan Baiku Technology Co., Ltd 62.74
goods
Sales of
Sichuan Changhong Moulding Tech. Co., Ltd. 43.19 13,068.52
goods
Sales of
Sichuan Huafeng Enterprise Group Co., Ltd. 35.31
goods
Sales of
Sichuan Changhong Electric Co., Ltd. 23.92 318.89
goods
Sales of
Sichuan Aoku Technology Co., Ltd. 23.01
goods
Sales of
Chengdu Guigu Environmental Tech. Co., Ltd 14.17 41.36
goods
Sales of
Sichuan Changhong Minsheng Logistics Co., Ltd. 13.97 9.73
goods
Sales of
Guangyuan Changhong Electronic Technology Co., Ltd. 13.79 8.07
goods
227
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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)
Sales of
Sichuan Changhong Real Estate Co., Ltd. 9.72 1.96
goods
Sales of
Changhong Huayi Compressor Co., Ltd. 7.26
goods
Sales of
Hong Yuan Ground Energy Heat Tech. Co., Ltd 5.10 202.96
goods
Sales of
Sichuan Aichuang Science & Technology Co., Ltd. 2.19 16.47
goods
Sales of
Guangdong Changhong Electronics Co., Ltd. 1.99 10.62
goods
Sales of
Sichuan Changhong Device Technology Co., Ltd. 0.11 0.08
goods
Sales of
Hunan Grand-Pro Intelligent Tech. Company 0.05
goods
Sales of
Sichuan Changxin Refrigeration Parts Co., Ltd. 8,177.09
goods
Sales of
Sichuan Changhong Jijia Fine Co., Ltd. 3,677.37
goods
Sales of
PT.CHANGHONGELECTRICINDONESIA 27.8
goods
Sales of
Mianyang Lejiayi Commercial Chain Co., Ltd. 9.25
goods
Sales of
Hefei Changhong Industrial Co., Ltd. 7.89
goods
Sales of
081 Electronic Group Co., Ltd. 0.08
goods
Total 381,920.47 394,266.32
5. Provide the services
Related party Content Current Period Last Period
Sichuan Service Exp. Appliance Service Chain Co., Provide the
1,172,476.55
Ltd. services
Provide the
Sichuan Huafeng Enterprise Group Co., Ltd. 366,055.05 13,205.66
services
Provide the
Changhong Huayi Compressor Co., Ltd. 355,407.86
services
Provide the
Sichuan Changxin Refrigeration Parts Co., Ltd. 229,524.66
services
Provide the
Sichuan Changhong Minsheng Logistics Co., Ltd. 174,099.76 189,986.96
services
Provide the
Sichuan Aoku Technology Co., Ltd. 156,191.31
services
Provide the
Sichuan Changhong Moulding Tech. Co., Ltd. 133,161.41 87,808.26
services
Provide the
Yuanxin Financial Lease Co., Ltd. 95,673.53
services
Provide the
Sichuan Changhong Property Service Co., Ltd. 85,797.50
services
Provide the
Sichuan Changhong Device Technology Co., Ltd. 80,064.14
services
Provide the
Guang yuan Hongcheng Industrial Co., Ltd. 45,871.56
services
Provide the
Sichuan Changhong Jijia Fine Co., Ltd. 37,577.54 94,798.00
services
Sichuan Changhong Jiechuang Lithium Technology Provide the
25,619.68
Co., Ltd. services
228
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Related party Content Current Period Last Period
Provide the
Sichuan Changhong International Hotel Co., Ltd. 16,528.32
services
Provide the
Sichuan Zhiyijia Network Technology Co., Ltd. 8,355.62 12,600.00
services
Provide the
Sichuan Qiruik Technology Co., Ltd. 1,332.00
services
Provide the
Hefei Changhong Industrial Co., Ltd. 220.00
services
Provide the
Hong Yuan Ground Energy Heat Tech. Co., Ltd 216,981.14
services
Provide the
Guangdong Changhong Electronics Co., Ltd. 116,398.34
services
Provide the
081 Electronic Group Co., Ltd. 47,230.97
services
Provide the
Sichuan Changhong Electronic Products Co., Ltd. 11,021.81
services
Sichuan Changhong Gerun Environmental Provide the
9,433.96
Protection Tech. Co., Ltd. services
Provide the
Chengdu Guigu Environmental Tech. Co., Ltd 8,874.24
services
Sichuan Changhong Precision Electronics Tech. Provide the
6,434.91
Co., Ltd. services
Provide the
Sichuan Hongwei Technology Co., Ltd. 1,440.00
services
Sichuan Changhong Electronics Holding Group Provide the
-10,800.00
Co., Ltd. services
Provide the
Sichuan Changhong Network Technology Co., Ltd. -34,142.50
services
Provide the
Sichuan Changhong Electric Co., Ltd. -326,514.20 -90,632.94
services
Provide the
Sichuan Aichuang Science & Technology Co., Ltd. -789,703.69 254,071.82
services
Total 1,867,738.60 934,710.63
Businesses between the Company and its connected persons are generally conducted under market
operation rules as if they were the same as other business counterparties. 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.
6. Provide fuel power
Related party Content Current Period Last Period
Sichuan Changhong Moulding Tech. Provide fuel
3,220,793.17 3,510,461.21
Co., Ltd. power
Sichuan Changhong Device Technology Provide fuel
152,675.30 310,921.71
Co., Ltd. power
Provide fuel
Sichuan Changhong Jijia Fine Co., Ltd. 78,906.25 76,952.28
power
Sichuan Zhiyijia Network Technology Provide fuel
35,249.60 25,002.79
Co., Ltd. power
Changhong International Holdings Provide fuel 29,532.75 23,176.99
229
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Related party Content Current Period Last Period
(Hong Kong) Co., Ltd. power
Sichuan Changhong Minsheng Provide fuel
21,889.33 28,024.31
Logistics Co., Ltd. power
Sichuan Changhong Precision Provide fuel
7,176.72 5,186.20
Electronics Tech. Co., Ltd. power
Guangdong Changhong Electronics Provide fuel
2,753.70 5,371.01
Co., Ltd. power
Total 3,548,976.82 3,985,096.50
7. Related rental
(1) Rent out
Type of Leasing income in Leasing income in
Lessor Lessee
assets Current Period Last Period
Apartments,
Changhong Sichuan Changhong Moulding Tech.
warehouses, 1,350,299.40 389,702.27
Meiling Co., Ltd.
factories
warehouse,
Changhong Sichuan Changhong Jijia Fine Co., apartment,
461,571.78 160,742.34
Meiling Ltd. forklift,
warehouse
Apartments,
Changhong
Hefei Changhong Industrial Co., Ltd. warehouses, 303,237.74 125,585.62
Meiling
forklifts
Apartments,
Changhong Sichuan Service Exp. Appliance
Offices, 117,660.00 81,600.00
Meiling Service Chain Co., Ltd.
Forklifts
Changhong Sichuan Changhong Minsheng apartment,
110,877.98 107,800.32
Meiling Logistics Co., Ltd. office
Changhong Sichuan Zhiyijia Network Technology
Apartment 94,128.44 98,968.06
Meiling Co., Ltd.
Changhong Sichuan Changhong Precision
Apartment 47,700.00 21,600.00
Meiling Electronics Tech. Co., Ltd.
Changhong Sichuan Aichuang Science &
Warehouse 18,759.84 18,759.84
Meiling Technology Co., Ltd.
Changhong
Sichuan Aoku Technology Co., Ltd. Warehouse 1,618.86
Meiling
Changhong
Sichuan Ailink Technology Co., Ltd. Warehouse 938.94 952.34
Meiling
Changhong
Sichuan Changhong Moulding Tech. plant,
Air- 2,542,277.65 3,634,895.46
Co., Ltd. equipment
conditioner
Changhong
Sichuan Changhong Jijia Fine Co., plant,
Air- 1,766,750.99 2,458,174.33
Ltd. equipment
conditioner
Changhong
plant,
Air- Sichuan Changhong Electric Co., Ltd. 1,511,579.46 481,457.77
equipment
conditioner
Changhong
Sichuan Changxin Refrigeration Parts
Air- Equipment 126,666.66
Co., Ltd.
conditioner
Changhong
Chengdu Guigu Environmental Tech.
Air- Workshop 14,201.83 28,403.67
Co., Ltd
conditioner
Zhongshan Sichuan Changhong Precision 2# living
42,000.00 21,000.00
Changhong Electronics Tech. Co., Ltd. area
230
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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
Zhongshan Sichuan Changhong Moulding Tech. 2# living
32,400.00 22,364.52
Changhong Co., Ltd. area
Parts of the
Zhongshan Sichuan Changhong Minsheng office
22,148.58 22,148.58
Changhong Logistics Co., Ltd. building
rent-out
Zhongshan Guangdong Changhong Electronics 2# living
14,221.47 22,485.99
Changhong Co., Ltd. area
Zhongshan Sichuan Changhong Device 2# living
3,735.44
Changhong Technology Co., Ltd. area
Jiangxi Sichuan Changhong Moulding Tech.
Workshop 411,144.18 411,144.18
Meiling Co., Ltd.
Jiangxi Sichuan Changhong Minsheng Warehouse
9,142.86
Meiling Logistics Co., Ltd. Office
Zhongke Sichuan Changhong Minsheng
Workshop 783,911.94
Meiling Logistics Co., Ltd.
Ridian Sichuan Changhong Device
Workshop 1,087,270.81 1,087,270.76
Technology Technology Co., Ltd.
Ridian
Sichuan Qiruik Technology Co., Ltd. Workshop 47,314.29
Technology
Ridian Sichuan Hongwei Technology Co.,
Workshop 47,314.29
Technology Ltd.
Total 10,133,911.76 10,030,017.72
(2) Lessee of related parties
Leasing income
Type of Leasing income
Lessor Lessee in Current
assets in Last Period
Period
Changhong
Hefei Changhong Industrial Co., Ltd. Workshop 893,651.95
Meiling
Changhong
Staff
Sichuan Jiahong Industrial Co., Ltd. Air- 184,147.52
dormitory
conditioner
Changhong
VISA
Sichuan Changhong Electric Co., Ltd. Air- 170,589.02
Laboratories
conditioner
Changhong Staff
Sichuan Changhong Electronics Holding
Air- dormitory, 62,774.40 101,443.84
Group Co., Ltd.
conditioner store rental
Ground
Guangdong Changhong Electronics Co., Staff
energy heat 38,582.61 50,139.23
Ltd. dormitory
pump
Guangdong Changhong Electronics Co., Zhongshan
Workshop 677,103.12 677,103.14
Ltd. Changhong
Mianyang
Sichuan Changhong Electric Co., Ltd. Workshop 1,641,651.96 1,630,727.51
Meiling
Mianyang Staff
Sichuan Jiahong Industrial Co., Ltd. 9,723.82
Meiling dormitory
Sichuan Changhong Electronics Holding Mianyang Staff
4,363.60
Group Co., Ltd. Meiling dormitory
Jiangxi Staff
Changhong Huayi Compressor Co., Ltd. 44,310.17
Meiling dormitory
Guangdong Changhong Electronics Co., Ridian Staff
65,766.19 61,733.50
Ltd. Technology dormitory
Chengdu Changhong Electronic Technology Hongmei
Office 362,977.21
Co., Ltd. Intelligent
Total 4,151,277.97 2,525,510.82
231
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
8. Related guarantee
Maximum
Completed
guarantee
(Y/N)
amount
Secured party Sponsored party Start Date due
(in 10
thousand
Yuan)
Changhong Meiling Meiling Group 5,000.00 2021-03-05 2022-03-05 Y
Changhong Meiling Meiling Group 5,000.00 2022-04-18 2023-04-18 N
Changhong air-
Changhong Meiling 5,000.00 2021-09-24 2022-09-24 N
conditioner
Changhong air-
Changhong Meiling 15,000.00 2021-12-07 2022-12-06 N
conditioner
Changhong air-
Changhong Meiling 8,000.00 2022-03-18 2023-03-17 N
conditioner
Changhong air-
Changhong Meiling 30,000.00 2022-04-18 2023-04-18 N
conditioner
Zhongshan
Changhong Meiling 20,000.00 2021-04-08 2022-03-18 Y
Changhong
Zhongshan
Changhong Meiling 18,000.00 2021-03-29 2022-03-29 Y
Changhong
Zhongshan
Changhong Meiling 13,000.00 2021-03-03 2022-03-03 Y
Changhong
Zhongshan
Changhong Meiling 10,000.00 2021-05-25 2022-05-25 Y
Changhong
Zhongshan
Changhong Meiling 9,000.00 2021-03-15 2022-03-15 Y
Changhong
Zhongshan
Changhong Meiling 20,000.00 2021-03-30 2022-03-30 Y
Changhong
Zhongshan
Changhong Meiling 5,000.00 2021-07-22 2022-07-22 N
Changhong
Zhongshan
Changhong Meiling 5,000.00 2021-08-24 2022-08-23 N
Changhong
Zhongshan
Changhong Meiling 15,000.00 2021-08-09 2022-08-08 N
Changhong
Zhongshan
Changhong Meiling 2,000.00 2022-02-15 2023-02-14 N
Changhong
Zhongshan
Changhong Meiling 18,000.00 2022-04-22 2023-04-22 N
Changhong
Zhongshan
Changhong Meiling 6,000.00 2022-03-15 2023-03-15 N
Changhong
Zhongshan
Changhong Meiling 10,000.00 2022-04-22 2023-04-22 N
Changhong
Zhongshan
Changhong Meiling 7,000.00 2022-03-28 2023-03-29 N
Changhong
Zhongshan
Changhong Meiling 13,000.00 2022-06-16 2023-06-16 N
Changhong
Meiling Life
Changhong Meiling 2,000.00 2021-07-26 2022-07-26 Y
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-07-29 2022-07-28 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-08-18 2022-08-08 N
Appliances
Meiling Life
Changhong Meiling 2,000.00 2021-10-13 2022-10-12 N
Appliances
Meiling Life
Changhong Meiling 4,000.00 2021-12-09 2022-11-02 N
Appliances
Meiling Life
Changhong Meiling 3,000.00 2022-01-26 2023-01-26 N
Appliances
232
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Maximum
Completed
guarantee
(Y/N)
amount
Secured party Sponsored party Start Date due
(in 10
thousand
Yuan)
Meiling Life
Changhong Meiling 5,000.00 2022-03-21 2022-08-21 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2022-03-16 2023-03-16 N
Appliances
Changhong Meiling Ridian Technology 3,000.00 2021-08-09 2022-08-08 N
Changhong Meiling Ridian Technology 4,000.00 2021-09-16 2022-09-15 N
Changhong Meiling Ridian Technology 3,000.00 2022-03-25 2023-03-25 N
Changhong Meiling Ridian Technology 4,000.00 2021-03-31 2022-03-31 Y
Changhong Meiling Zhongke Meiling 5,000.00 2021-05-24 2022-05-24 N
Changhong Meiling Zhongke Meiling 6,000.00 2021-09-22 2022-09-22 N
Zhongke Meiling Anhui Tuoxing 500.00 2022-06-27 2023-06-27 N
Zhongke Meiling Anhui Tuoxing 500.00 2021-04-01 2022-04-01 Y
Changhong Meiling Jiangxi Meiling 10,000.00 2021-07-08 2022-07-08 N
Counter
guarantee:
Meiling Group Changhong Meiling 5,000.00 2021-03-05 2022-03-05 Y
Meiling Group Changhong Meiling 5,000.00 2022-04-18 2023-04-18 N
Changhong air-
Changhong Meiling 5,000.00 2021-09-24 2022-09-24 N
conditioner
Changhong air-
Changhong Meiling 15,000.00 2021-12-07 2022-12-06 N
conditioner
Changhong air-
Changhong Meiling 8,000.00 2022-03-18 2023-03-17 N
conditioner
Changhong air-
Changhong Meiling 30,000.00 2022-04-18 2023-04-18 N
conditioner
Zhongshan
Changhong Meiling 20,000.00 2021-04-08 2022-03-18 Y
Changhong
Zhongshan
Changhong Meiling 18,000.00 2021-03-29 2022-03-29 Y
Changhong
Zhongshan
Changhong Meiling 13,000.00 2021-03-03 2022-03-03 Y
Changhong
Zhongshan
Changhong Meiling 10,000.00 2021-05-25 2022-05-25 Y
Changhong
Zhongshan
Changhong Meiling 9,000.00 2021-03-15 2022-03-15 Y
Changhong
Zhongshan
Changhong Meiling 20,000.00 2021-03-30 2022-03-30 Y
Changhong
Zhongshan
Changhong Meiling 5,000.00 2021-07-22 2022-07-22 N
Changhong
Zhongshan
Changhong Meiling 5,000.00 2021-08-24 2022-08-23 N
Changhong
Zhongshan
Changhong Meiling 15,000.00 2021-08-09 2022-08-08 N
Changhong
Zhongshan
Changhong Meiling 2,000.00 2022-02-15 2023-02-14 N
Changhong
Zhongshan
Changhong Meiling 18,000.00 2022-04-22 2023-04-22 N
Changhong
Zhongshan
Changhong Meiling 6,000.00 2022-03-15 2023-03-15 N
Changhong
233
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Maximum
Completed
guarantee
(Y/N)
amount
Secured party Sponsored party Start Date due
(in 10
thousand
Yuan)
Zhongshan
Changhong Meiling 10,000.00 2022-04-22 2023-04-22 N
Changhong
Zhongshan
Changhong Meiling 7,000.00 2022-03-28 2023-03-29 N
Changhong
Zhongshan
Changhong Meiling 13,000.00 2022-06-16 2023-06-16 N
Changhong
Meiling Life
Changhong Meiling 2,000.00 2021-07-26 2022-07-26 Y
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-07-29 2022-07-28 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2021-08-18 2022-08-08 N
Appliances
Meiling Life
Changhong Meiling 2,000.00 2021-10-13 2022-10-12 N
Appliances
Meiling Life
Changhong Meiling 4,000.00 2021-12-09 2022-11-02 N
Appliances
Meiling Life
Changhong Meiling 3,000.00 2022-01-26 2023-01-26 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2022-03-21 2022-08-21 N
Appliances
Meiling Life
Changhong Meiling 5,000.00 2022-03-16 2023-03-16 N
Appliances
Ridian Technology Changhong Meiling 3,000.00 2021-08-09 2022-08-08 N
Ridian Technology Changhong Meiling 4,000.00 2021-09-16 2022-09-15 N
Ridian Technology Changhong Meiling 3,000.00 2022-03-25 2023-03-25 N
Ridian Technology Changhong Meiling 4,000.00 2021-03-31 2022-03-31 Y
Zhongke Meiling Changhong Meiling 5,000.00 2021-05-24 2022-05-24 N
Zhongke Meiling Changhong Meiling 6,000.00 2021-09-22 2022-09-22 N
Anhui Tuoxing Zhongke Meiling 500.00 2022-06-27 2023-06-27 N
Anhui Tuoxing Zhongke Meiling 500.00 2021-04-01 2022-04-01 Y
Jiangxi Meiling Changhong Meiling 10,000.00 2021-07-08 2022-07-08 N
9. Assets transfer and debt reorganization of related parties
234
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Related party Type Current Period Last Period
Purchase and
Sichuan Hongxin Software Co., Ltd. construction of fixed 1,570,283.02
assets
Purchase and
Sichuan Changhong Electric Co., Ltd. construction of fixed 1,400,000.03 5,595.00
assets
Purchase/ Purchase and
Sichuan Changhong Intelligent
construction of fixed 484,283.19 5,762,952.63
Manufacturing Technology Co., Ltd.
assets
Purchase and
Mianyang Science & Technology City
construction of fixed 452,630.47
Big Data Technology Co., Ltd.
assets
Purchase and
Sichuan Changhong Electronics
construction of fixed 94,339.62
Holding Group Co., Ltd.
assets
Sichuan Qiruik Technology Co., Ltd. Purchasing fixed assets 65,575.22
Sichuan Zhiyijia Network Technology
Purchasing fixed assets 8,407.06
Co., Ltd.
Guangdong Changhong Electronics Co.,
Purchasing fixed assets 600.00
Ltd.
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
Sichuan Changhong Moulding Tech.
Purchasing fixed assets 521,211.50
Co., Ltd.
Purchase and
Sichuan Huanyu Industrial Co., Ltd. construction of fixed 366,972.48
assets
Purchase intangible
Sichuan Hongxin Software Co., Ltd. 141,509.43
assets
Sichuan Aoku Technology Co., Ltd. Sale of fixed assets 121,030.34
Total 4,197,148.95 9,806,905.44
10. Other
Current Period (in Last Period (in 10
Name of company Content
10 thousand Yuan) thousand Yuan)
Yuanxin Financial Lease
Financing business 21,168.68 34,194.22
Co., Ltd.
11. Related transaction with Changhong Finance Company
(1) Saving balance
235
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Interest income
from bank
Name of company Ending balance Opening balance
saving in the
period
Changhong Meiling Co., Ltd. 1,628,997,355.75 1,750,741,958.39 24,115,331.72
Sichuan Changhong Air-conditioner Co., Ltd 837,105,759.65 667,374,291.19 5,513,643.72
Zhongshan Changhong Electric Co., Ltd 501,466,098.24 472,478,264.48 6,323,885.94
Hefei Changhong Meiling Life Appliances Co.,
195,059,408.17 204,429,613.95 4,758,430.52
Ltd.
Ground Energy Heat Pump Tech. (Zhongshan)
52,985,499.78 117,428,653.82 766,128.76
Co., Ltd.
Zhongke Meiling Cryogenic Technology Co.,
40,000,000.00 89,236,818.21 1,289,402.20
Ltd
Changhong Meiling Ridian Technology Co.,
35,195,135.40 78,870,573.40 1,331,610.01
Ltd.
Hebei Hongmao Daily Appliance Technology
4,814,127.85 4,185,481.97 37,800.02
Co., Ltd.
Hefei Meiling Group Holdings Limited 173,553.73 227,396.51 7,525.58
Anhui Tuoxing Technology Co., Ltd. 38,804.27 58,438.14 1,862.82
Mianyang Meiling Refrigeration Co., Ltd. 26,107.80 26,052.45 58.39
Ground Energy Heat Pump Tech. Co., Ltd. 16,113.12 19,795.17 40.20
Jiangxi Meiling Electric Appliance Co., Ltd. 9,606.06 9,585.70
21.48
Total 3,295,887,569.82 3,385,086,923.38 44,145,741.36
(2) Discounted bills
Bank acceptance Bank acceptance Discounting fees
Name of company Discounted face Amount of
Discounted amount
amount expenses
Sichuan Changhong Air-conditioner Co.,
576,664,759.78 570,578,821.86 6,085,937.92
Ltd
Changhong Meiling Co., Ltd. 404,521,001.09 401,143,854.50 3,377,146.59
Hefei Changhong Meiling Life Appliances
65,483,566.64 64,927,310.55 556,256.09
Co., Ltd.
Total 1,046,669,327.51 1,036,649,986.91 10,019,340.60
(3) Issuing bills
236
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Name of company Bill issuing unit Amount of bills Type
Bank
Sichuan Changhong Air-conditioner Sichuan Changhong Group
795,794,750.07 acceptance
Co., Ltd Finance Co., Ltd.
bill
Bank
Zhongshan Changhong Electric Co., Sichuan Changhong Group
311,775,802.43 acceptance
Ltd Finance Co., Ltd.
bill
Bank
Sichuan Changhong Group
Changhong Meiling Co., Ltd. 292,495,135.58 acceptance
Finance Co., Ltd.
bill
Bank
Hefei Changhong Meiling Life Sichuan Changhong Group
65,790,640.18 acceptance
Appliances Co., Ltd. Finance Co., Ltd.
bill
Bank
Hefei Meiling Group Holdings Sichuan Changhong Group
60,530,654.68 acceptance
Limited Finance Co., Ltd.
bill
Bank
Ground Energy Heat Pump Tech. Sichuan Changhong Group
53,219,911.64 acceptance
(Zhongshan) Co., Ltd. Finance Co., Ltd.
bill
Bank
Zhongke Meiling Cryogenic Sichuan Changhong Group
42,507,477.55 acceptance
Technology Co., Ltd Finance Co., Ltd.
bill
Bank
Hebei Hongmao Daily Appliance Sichuan Changhong Group
12,534,617.64 acceptance
Technology Co., Ltd. Finance Co., Ltd.
bill
Bank
Changhong Meiling Ridian Sichuan Changhong Group
6,404,093.71 acceptance
Technology Co., Ltd. Finance Co., Ltd.
bill
Bank
Anhui Tuoxing Technology Co., Sichuan Changhong Group
388,042.66 acceptance
Ltd. Finance Co., Ltd.
bill
Total 1,641,441,126.14
(4) Borrowing: nil
(5) 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
Sichuan Zhiyijia
Account Network
729,357,230.57 590,034,682.52
receivable Technology Co.,
Ltd.
CHANGHONG(HK
Account
)TRADINGLIMITE 97,388,887.21 14,593,546.00
receivable
D
Changhong
Account International
69,808,921.67 2,109,676.72 35,985,886.24 971,525.15
receivable Holdings (Hong
Kong) Co., Ltd.
CHANGHONGEL
Account
ECTRIC(AUSTRA 45,370,669.06 648,386.48 55,903,139.06
receivable
LIA)PTY.LTD.
237
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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
ChanghongRubaEle
Account
ctricCompany(Priva 40,863,864.04 3,349,025.22 39,274,379.69 2,991,971.20
receivable
te)Ltd.
Account Orion.PDP.Co.,ltd
25,138,268.70 679,786.93 7,923,855.47
receivable
CHANGHONGEL
Account
ECTRICMIDDLEE 3,225,485.97 120,716.04
receivable
ASTFZCO
Account ChanghongEuropeE
1,705,451.95 3,382,179.18
receivable lectrics.r.o
Hong Yuan Ground
Account
Energy Heat Tech. 1,245,494.53 181,186.74 1,251,751.92 185,439.69
receivable
Co., Ltd
Lejiayi Chain
Account
Management Co., 1,191,775.40 1,695.82 141,775.39
receivable
Ltd.
Sichuan Huafeng
Account
Enterprise Group 798,000.00
receivable
Co., Ltd.
Account Sichuan Changhong
507,258.99 12,435.92 2,512,637.87 569.25
receivable Electric Co., Ltd.
Sichuan Changhong
Account
Moulding Tech. 387,286.97
receivable
Co., Ltd.
Sichuan Service
Account Exp. Appliance
331,005.72 67,279.43
receivable Service Chain Co.,
Ltd.
Changhong Huayi
Account
Compressor Co., 165,810.00 642,605.16
receivable
Ltd.
Sichuan Ansify
Account
Technology Co., 44,580.80 52,448.00
receivable
Ltd.
Sichuan Changxin
Account
Refrigeration Parts 26,666.66
receivable
Co., Ltd.
Sichuan Changhong
Account Precision
16,695.00
receivable Electronics Tech.
Co., Ltd.
Sichuan Changhong
Account
Minsheng Logistics 1,900.00 6,619.80
receivable
Co., Ltd.
Sichuan Aichuang
Account Science &
1,595,719.32
receivable Technology Co.,
Ltd.
Changhong Grand-
Account
Pro Technology Co., 705,000.00
receivable
Ltd.
Sichuan Changhong
Account
International Hotel 17,064.50
receivable
Co., Ltd.
Account Yuanxin Financial
7,852.07
receivable Lease Co., Ltd.
Guangdong
Account Changhong
5,239.75 248.56
receivable Electronics Co.,
Ltd.
238
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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
Hongmofang
Account
Network 4,380.00
receivable
Technology Co.,
Ltd.
Sichuan Changhong
Account Intelligent
paid in Manufacturing 1,362,684.87 925,280.67
advance Technology Co.,
Ltd.
Sichuan Aichuang
Account
Science &
paid in 684,000.00 684,000.00
Technology Co.,
advance
Ltd.
Account Sichuan Ailink
paid in Technology Co., 396.02 396.02
advance Ltd.
Sichuan Zhiyijia
Account
Network
paid in 67,678.94
Technology Co.,
advance
Ltd.
Account
Hefei Changhong
paid in 38,029.06
Industrial Co., Ltd.
advance
Changhong Grand-
Other
Pro Technology Co., 267,000.00 267,000.00
receivable
Ltd.
Sichuan Service
Other Exp. Appliance
264,887.71 200,000.00
receivable Service Chain Co.,
Ltd.
Sichuan Changhong
Other Jiechuang Lithium
129,000.00 129,000.00
receivable Technology Co.,
Ltd.
Sichuan Zhiyijia
Other Network
100,000.00
receivable Technology Co.,
Ltd.
Other Sichuan Changhong
60,000.00 59,857.21
receivable Electric Co., Ltd.
Guangdong
Other Changhong
25,899.43 25,899.43
receivable Electronics Co.,
Ltd.
Sichuan Changhong
Other
Power Source Co., 19,200.00 19,200.00
receivable
Ltd.
Other Sichuan Changhong
6,596.51 17,232.50
receivable Jijia Fine Co., Ltd.
Total 1,020,494,917.78 6,982,193.83 756,662,331.24 4,149,753.85
2. Payable items
Item Related party Ending balance Opening balance
Account payable Sichuan Changhong Moulding Tech. Co., Ltd. 315,222,887.54 27,523,349.71
Account payable Sichuan Changhong Jijia Fine Co., Ltd. 157,346,752.61 6,608,580.22
239
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Account payable Changhong Huayi Compressor Co., Ltd. 80,555,188.87 3,518,643.94
Account payable Sichuan Changxin Refrigeration Parts Co., Ltd. 61,160,351.34 7,599,199.65
Account payable Sichuan Changhong Electric Co., Ltd. 34,494,337.95 115,854.26
Changhong Ruba Electric Company (Private)
Account payable 32,606,629.00
Ltd.
Sichuan Aichuang Science & Technology Co.,
Account payable 32,459,525.53 7,290,455.51
Ltd.
Account payable Sichuan Changhong Package Printing Co., Ltd. 18,821,866.13 5,553,060.13
Changhong International Holdings (Hong Kong)
Account payable 13,487,100.46 12,718,331.49
Co., Ltd.
Sichuan Changhong Precision Electronics Tech.
Account payable 11,027,551.80 2,450,482.58
Co., Ltd.
Sichuan Changhong Electronic Products Co.,
Account payable 10,175,643.97 372,065.37
Ltd.
Account payable Mianyang Highly Electric Co., Ltd. 8,187,654.32 8,324,553.75
Sichuan Changhong Minsheng Logistics Co.,
Account payable 4,611,297.98 760,136.08
Ltd.
Sichuan Changhong Device Technology Co.,
Account payable 4,501,824.52 0.18
Ltd.
Account payable Sichuan Ailink Technology Co., Ltd. 3,465,770.09 3,014,723.46
Account payable Hefei Changhong Industrial Co., Ltd. 2,202,573.26
Sichuan Changhong Intelligent Manufacturing
Account payable 1,973,312.17 1,911,174.67
Technology Co., Ltd.
Account payable Guangdong Changhong Electronics Co., Ltd. 1,179,915.52 1,296,473.51
Account payable Sichuan Jiahong Industrial Co., Ltd. 558,118.29
Sichuan Service Exp. Appliance Service Chain
Account payable 514,481.32 449,551.04
Co., Ltd.
Account payable Sichuan Hongxin Software Co., Ltd. 403,701.89 28,301.89
Chengdu Changhong Electronic Technology
Account payable 326,258.23 326,258.23
Co., Ltd.
Account payable Sichuan Aoku Technology Co., Ltd. 295,530.47
Sichuan Changhong Electronics Holding Group
Account payable 108,400.00
Co., Ltd.
Sichuan Changhong International Hotel Co.,
Account payable 99,723.00
Ltd.
Account payable 081 Electronic Group Co., Ltd. 53,026.90 53,196.86
Sichuan Hongcheng Construction Engineering
Account payable 50,000.00 50,000.00
Co., ltd
Account payable Sichuan Hongyu Metal Manufacturing Co., Ltd. 14,662.40 14,662.40
Sichuan Changhong New Energy Technology
Account payable 13,560.00 8,000.40
Co., Ltd.
Account payable Sichuan Changhong Power Source Co., Ltd. 1,870.82 1,870.82
Account payable Hong Yuan Ground Energy Heat Tech. Co., Ltd 0.01 0.01
Account payable Hunan Grand-Pro Intelligent Tech. Company 391,610.62
Sichuan Changhong International Travel Service
Account payable 90,789.00
Co., Ltd.
Contract liability Lejiayi Chain Management Co., Ltd. 1,672,191.25 828,419.67
Sichuan Changhong Intelligent Technology Co.,
Contract liability 1,120,221.22
Ltd.
240
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Contract liability Sichuan Zhiyijia Network Technology Co., Ltd. 769,911.50 34.38
Contract liability Sichuan Changhong Electric Co., Ltd. 480,927.60 547,736.39
Sichuan Aichuang Science & Technology Co.,
Contract liability 130,624.62
Ltd.
Sichuan Changhong Electronics Holding Group
Contract liability 70,867.26
Co., Ltd.
Contract liability 081 Electronic Group Co., Ltd. 46,585.00 22.61
Contract liability Hong Yuan Ground Energy Heat Tech. Co., Ltd 39,343.58 41,894.81
Sichuan Service Exp. Appliance Service Chain
Contract liability 11,270.90 303,764.99
Co., Ltd.
Contract liability Chengdu Guigu Environmental Tech. Co., Ltd 2,566.37 1,520.35
Changhong International Holdings (Hong Kong)
Contract liability 2,040.27
Co., Ltd.
Contract liability CHANGHONG (HK) TRADING LIMITED 861.02 817.96
Sichuan Changhong International Hotel Co.,
Contract liability 0.88
Ltd.
Guangyuan Changhong Electronic Technology
Contract liability 0.03
Co., Ltd.
Contract liability Sichuan Aoku Technology Co., Ltd. 358,528.90
Sichuan Changhong Device Technology Co.,
Contract liability 59,317.08
Ltd.
Contract liability Guang yuan Hongcheng Industrial Co., Ltd. 22,935.78
Sichuan Changhong Minsheng Logistics Co.,
Contract liability 3,362.83
Ltd.
Contract liability Sichuan Tianyou Guigu Technology Co., Ltd 185.84
Lease liability Hefei Changhong Industrial Co., Ltd. 23,750,695.99 24,644,347.94
Lease liability Sichuan Changhong Electric Co., Ltd. 10,529,779.32 11,332,933.78
Chengdu Changhong Electronic Technology
Lease liability 64,050.73 977,917.93
Co., Ltd.
Sichuan Changhong Minsheng Logistics Co.,
Other payable 112,771,549.4 100,309,779.69
Ltd.
Sichuan Service Exp. Appliance Service Chain
Other payable 109,330,238.55 116,814.89
Co., Ltd.
Other payable Yuanxin Financial Lease Co., Ltd. 85,592,599.92 79,697,695.46
Other payable CHANGHONG (HK) TRADING LIMITED 4,911,677.86 26,435.95
Other payable Sichuan Changhong Moulding Tech. Co., Ltd. 2,595,781.48 2,194,205.68
Other payable Changhong Huayi Compressor Co., Ltd. 1,698,900.00 1,598,900.00
Sichuan Changhong Intelligent Manufacturing
Other payable 727,845.10 608,075.10
Technology Co., Ltd.
Other payable Sichuan Zhiyijia Network Technology Co., Ltd. 586,201.06 784,247.43
Sichuan Changhong Jineng Sunshine
Other payable 500,000.00 500,000.00
Technology Co., Ltd.
Other payable Sichuan Changhong Jijia Fine Co., Ltd. 400,500.00 400,500.00
Other payable Sichuan Qiruik Technology Co., Ltd. 376,614.00 175,244.04
Other payable Hunan Grand-Pro Intelligent Tech. Company 200,000.00 250,000.00
Other payable Sichuan Aoku Technology Co., Ltd. 144,874.60 96,455.34
Sichuan Aichuang Science & Technology Co.,
Other payable 100,000.00
Ltd.
241
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Related party Ending balance Opening balance
Mianyang Science & Technology City Big Data
Other payable 60,045.70
Technology Co., Ltd.
Other payable Sichuan Changxin Refrigeration Parts Co., Ltd. 53,536.27 46,702.03
Other payable Sichuan Changhong Package Printing Co., Ltd. 50,000.00 50,000.00
Other payable Sichuan Ailink Technology Co., Ltd. 50,000.00 50,000.00
Sichuan Changhong Electronic Products Co.,
Other payable 50,000.00 50,000.00
Ltd.
Other payable Hefei Changhong Industrial Co., Ltd. 50,000.00
Other payable Sichuan Changhong Electric Co., Ltd. 45,910.06 43,634.53
Changhong International Holdings (Hong Kong)
Other payable 43,059.21 52,728.63
Co., Ltd.
Other payable Guangdong Changhong Electronics Co., Ltd. 32,803.00 79,304.55
Sichuan Changhong Electronics Holding Group
Other payable 2,440.52 35,359.74
Co., Ltd.
Sichuan Changhong Precision Electronics Tech.
Other payable 567.00 0.01
Co., Ltd.
Sichuan Changhong Device Technology Co.,
Other payable 381.09
Ltd.
Other payable Sichuan Jiahong Industrial Co., Ltd. 18.00 18.00
Other payable Sichuan Hongwei Technology Co., Ltd. 220,425.76
Other payable Chengdu Guigu Environmental Tech. Co., Ltd 25,132.00
Total 1,154,986,996.75 317,006,725.85
(iv) Commitments from related parties: Nil
XII. Share-based payment: Nil
XIII. Contingency
1. Pending action or possible liabilities formed from arbitration
In November 2021, Zhejiang Teruisi Pharmaceutical Co., Ltd. filed a lawsuit against Zhongke Meiling
for the "Contract for Cold Storage Design, Equipment Procurement and Installation Construction".
Currently, a third-party engineering quality appraisal agency is conducting quality appraisal of the
objects under the contract, the boot-up and operation test has been initially completed, and Zhongke
Meiling intends to advocate maintenance of the cold storage project, and the maintenance cost is
estimated to be 1,793,030.00 yuan.
2. Contingency from external guarantee: Nil
3. Other contingency: Nil
242
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
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 rev io us period s and in flu ence: Nil
2. Debt restru ctu ring: Nil
3. Assets rep lace ment: Nil
4. Pension p lan : Nil
5. Discon tinu ing ope ra tion: Nil
6. Branch in forma tion
In 10 thousand Yuan
Refrigerator,
freezer Air- Small
Item Other Salesinbranch Total
Washing conditioner appliances
machine
Operation income 403,513.86 542,114.56 82,352.59 19,485.36 25,016.01 1,022,450.36
Including: foreign
400,411.80 542,084.47 72,291.16 7,662.93 1,022,450.36
trade income
Income from
transactions between 3,102.06 30.09 10,061.43 11,822.43 25,016.01
divisions
Operation expenses 416,936.62 532,963.83 81,446.79 17,198.98 24,755.45 1,023,790.77
Operation profit -13,422.76 9,150.73 905.80 2,286.38 260.56 -1,340.41
Total assets 1,088,459.78 618,945.84 76,536.33 22,235.90 171,719.07 1,634,458.78
Totalliability 619,528.52 497,490.08 53,775.63 8,711.32 28,030.05 1,151,475.50
Supplementary information
Depreciation and amortization
10,887.28 7,347.90 197.24 300.95 -10.55 18,743.92
expenses
243
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Refrigerator,
freezer Air- Small
Item Other Salesinbranch Total
Washing conditioner appliances
machine
Capital expenditure 12,633.34 5,549.85 24.40 434.56 54.87 18,587.28
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
Ratio Book value
Amount Ratio (%) Amount
(%)
Account receivable that
withdrawal bad debt 1,642,962,833.03 93.20 5,607,260.68 0.34 1,637,355,572.35
provision by single item
Including: Related party
1,640,802,695.33 93.08 4,639,780.88 0.28 1,636,162,914.45
payments
Account receivable with
1,192,657.90 0.07 1,192,657.90
letter of credit
Account receivable with
single minor amount but
967,479.80 0.05 967,479.80 100.00
withdrawal single item bad
debt provision
Account receivable
withdrawal bad debt 119,868,099.15 6.80 21,256,805.24 17.73 98,611,293.91
provision by portfolio
Including: account receivable
6,246,264.00 0.35 3,123,132.00 50.00 3,123,132.00
of engineering customers
Receivables other than
113,621,835.15 6.45 18,133,673.24 15.96 95,488,161.91
engineering customers
Total 1,762,830,932.18 100.00 26,864,065.92 1.52 1,735,966,866.26
(Continued)
Opening balance
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Account receivable that withdrawal
1,416,366,794.95 88.42 2,554,877.42 0.18 1,413,811,917.53
bad debt provision by single item
Including: Related party payments 1,390,662,728.52 86.82 2,203,703.69 0.16 1,388,459,024.83
Account receivable with letter of
25,352,892.70 1.58 25,352,892.70
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
185,510,434.61 11.58 16,670,455.89 8.99 168,839,978.72
debt provision by portfolio
Including: account receivable of
6,246,264.00 0.39 3,123,132.00 50.00 3,123,132.00
engineering customers
Receivables other than
179,264,170.61 11.19 13,547,323.89 7.56 165,716,846.72
engineering customers
244
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Opening balance
Category Book balance Bad debt provision
Ratio Ratio Book value
Amount Amount
(%) (%)
Total 1,601,877,229.56 100.00 19,225,333.31 1.20 1,582,651,896.25
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, 3 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 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
included)
Over one year - within 2 years (2 years
20.00
included)
Over 2 years - within 3 years (3 years
6,246,264.00 3,123,132.00 50.00
included)
Over 3 years 100.00
Total 6,246,264.00 3,123,132.00
(Continued)
Opening 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
included)
Over one year - within 2 years (2 years
20.00
included)
Over 2 years - within 3 years (3 years
6,246,264.00 3,123,132.00 50.00
included)
Over 3 years 100.00
245
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Opening balance
Account age Bad debt
Book balance Accrual ratio (%)
provision
Total 6,246,264.00 3,123,132.00
B. Receivables other than engineering customers
Ending balance
Account age Bad debt
Book balance Accrual ratio (%)
provision
Within 3 months (3 months included) 76,611,262.20 766,112.62 1.00
Over 3 months and within 6 months (6
1,706,357.54 170,635.75 10.00
months included)
Over 6 months and within one year (One year 13,661,184.13 2,732,236.83 20.00
included)
Over one year - within 2 years (2 years
12,872,569.35 6,436,284.68 50.00
included)
Over 2 years - within 3 years (3 years
3,710,292.85 2,968,234.28 80.00
included)
Over 3 years 5,060,169.08 5,060,169.08 100.00
Total 113,621,835.15 18,133,673.24
(Continued)
Opening balance
Account age Accrual ratio
Book balance Bad debt provision
(%)
Within 3 months (3 months included) 146,099,823.60 1,460,998.24 1.00
Over 3 months and within 6 months (6
10,604,804.35 1,060,480.44 10.00
months included)
Over 6 months and within one year (One year 9,051,609.96 1,810,321.99 20.00
included)
Over one year - within 2 years (2 years
8,453,845.93 4,226,922.97 50.00
included)
Over 2 years - within 3 years (3 years
327,432.61 261,946.09 80.00
included)
Over 3 years 4,726,654.16 4,726,654.16 100.00
Total 179,264,170.61 13,547,323.89
(2) By account age
246
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Account age Ending balance Opening balance
Within 3 months (3 months included) 943,021,204.33 667,235,077.95
Over 3 months and within 6 months (6
168,807,422.08 867,911,914.43
months included)
Over 6 months and within one year (One year
596,918,384.12 35,781,521.18
included)
Over one year - within 2 years (2 years
31,501,870.82 13,453,956.99
included)
Over 2 years - within 3 years (3 years
9,956,556.85 6,594,527.78
included)
Over 3 years 12,625,493.98 10,900,231.23
Total 1,762,830,932.18 1,601,877,229.56
(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
19,225,333.31 7,638,732.61 26,864,065.92
provision
Total 19,225,333.31 7,638,732.61 26,864,065.92
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amounted to
1,577,697,118.69 yuan, accounted for 89.50% of the receivables at balance of current period-end, the
bad debt provision amounted as 3,542,205.46 yuan.
(5) Receivables derecognized due to the transfer of financial assets: 206,504,068.29 yuan
(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 38,833,840.97 40,708,614.68
Total 38,833,840.97 40,708,614.68
(1) By nature
Nature Ending book balance Opening book balance
Export tax refund and Other tax refundable 8,001,439.54 26,634,190.54
Cash deposit 2,690,511.92 2,788,111.92
Loans of employee’s pretty cash 4,758,043.56 4,383,234.18
Related party in consolidation statement 4,391,769.95 4,859,662.12
Related party not in consolidation statement 200,000.00 200,000.00
Insurance compensation 18,970,000.00
Other 62,400.00 1,893,415.92
247
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Nature Ending book balance Opening book balance
Total 39,074,164.97 40,758,614.68
(2) Provision for bad debt of other receivable
First stage Second stage Third stage
Expected credit Expected credit loss
Bad debt reserves Expected loss for the whole for the whole Total
credit loss in duration (no duration (credit
next 12 months credit impairment has
impairment) occurred)
Balance as at 1 Jan. 2022 50,000.00 50,000.00
Book balance of other account
receivable in Current Period as — — — —
at 1 Jan. 2022
--Transfer to the second stage
--Transfer to the third stage
--Reversal to the second stage
--Reversal to the first stage
Provision in Current Period 190,324.00 190,324.00
Reversal in Current Period
Conversion in Current Period
Write off in Current Period
Other change
Balance as at 30 Jun. 2022 190,324.00 50,000.00 240,324.00
(3) By account age
Account age Ending balance Opening balance
Within 3 months (3 months included) 31,026,643.98 34,703,730.05
Over 3 months and within 6 months (6 months
817,562.29 1,390,793.47
included)
Over 6 months and within one year (One year
3,307,712.59 1,144,671.71
included)
over one year-within two years (2 years
1,555,155.65 1,556,311.89
included)
Over 2 years - within 3 years (3 years
822,700.00 899,400.00
included)
Over 3 years 1,544,390.46 1,063,707.56
Total 39,074,164.97 40,758,614.68
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the period
248
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Proportion of
Ending
the total
balance
period-end
Name of the unit Nature Ending balance Account age of bad
balance of
debt
other
reserve
receivable (%)
Insurance
Unit I 18,970,000.00 Within 3 months 48.55
compensation
Unit II Export rebates 8,001,439.54 Within 3 months 20.48
Related party
Unit III 4,574,459.69 Within 1 year 11.71
payment
Related party
Unit IV 3,151,115.75 1-2 years 8.06
payment
Related party
Unit V 2,871,072.68 Within 1 year 7.35
payment
Total 37,568,087.66 96.15
(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 2022 to 30 June 2022
(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 Technology Co.,
42,652,000.00 42,652,000.00 42,652,000.00 42,652,000.00
Ltd
Mianyang Meiling Refrigeration Co., Ltd. 95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00
Hefei Meiling Electric Appliances Marketing
54,900,000.00 54,900,000.00 54,900,000.00 54,900,000.00
Co., Ltd
Zhongshan Changhong Electric Co., Ltd 304,856,419.37 304,856,419.37 304,856,419.37 304,856,419.37
Sichuan Changhong Air-conditioner Co., Ltd 955,600,437.79 955,600,437.79 955,600,437.79 955,600,437.79
Hefei Meiling Group Holdings Limited 113,630,000.00 113,630,000.00 113,630,000.00 113,630,000.00
Jiangxi Meiling Electric Appliance Co., Ltd. 79,000,000.00 79,000,000.00 79,000,000.00 79,000,000.00
Changhong Meiling Ridian Technology Co.,
91,082,111.12 91,082,111.12 91,082,111.12 91,082,111.12
Ltd.
Meiling CANDY Washing Machine Co., Ltd 60,000,000.00 27,675,208.01 32,324,791.99 60,000,000.00 27,675,208.01 32,324,791.99
Hefei Meiling Wulian Technology Co., Ltd 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
CH-Meiling.International (Philippines) Inc. 6,889,100.00 6,889,100.00 6,889,100.00 6,889,100.00
Hefei Changhong Meiling Life Appliances Co.,
35,000,000.00 35,000,000.00 35,000,000.00 35,000,000.00
Ltd.
Investment in associates:
Hefei Xingmei Assets Management Co., Ltd. 19,452,270.21 19,452,270.21 19,835,366.84 19,835,366.84
Sichuan Zhiyijia Network Technology Co., Ltd. 46,610,307.25 46,610,307.25 45,787,014.55 45,787,014.55
Total 1,910,672,645.74 27,675,208.01 1,882,997,437.73 1,910,232,449.67 27,675,208.01 1,882,557,241.66
250
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
(2) Investment in subsidiaries
Provision for
Increased in Decreased in Endingbalance of
Invested enterprise Opening balance Ending balance impairmentlosses
Current Period Current Period impairment
in the Period
Zhongke Meiling Cryogenic Technology Co.,
42,652,000.00 42,652,000.00
Ltd
Mianyang Meiling Refrigeration Co., Ltd. 95,000,000.00 95,000,000.00
Hefei Meiling Electric Appliances Marketing
54,900,000.00 54,900,000.00
Co., Ltd
Zhongshan Changhong Electric Co., Ltd 304,856,419.37 304,856,419.37
Sichuan Changhong Air-conditioner Co., Ltd 955,600,437.79 955,600,437.79
Hefei Meiling Group Holdings Limited 113,630,000.00 113,630,000.00
Jiangxi Meiling Electric Appliance Co., Ltd. 79,000,000.00 79,000,000.00
Changhong Meiling Ridian Technology Co.,
91,082,111.12 91,082,111.12
Ltd.
Hefei Changhong Meiling Life Appliances Co.,
35,000,000.00 35,000,000.00
Ltd.
Meiling CANDY Washing Machine Co., Ltd 60,000,000.00 60,000,000.00 27,675,208.01
Hefei Meiling Wulian Technology Co., Ltd 6,000,000.00 6,000,000.00
CH-Meiling.International (Philippines) Inc. 6,889,100.00 6,889,100.00
Total 1,844,610,068.28 1,844,610,068.28 27,675,208.01
(3) Investment in associates
Changesin CurrentPeriod
Adjust Ending
Provisio
Addit Negat ment balance of
Invested enterprise Opening balance Investmentincome Other nfor Endingbalance
ional ive for Cashdividendorprofit Ot impairmen
recognized under equity impair
Invest Invest other announcedto issued her t
equity change ment
ment ment compre
loss
hensive
251
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
income
Hefei Xingmei Assets Management
19,835,366.84 4,686,303.37 5,069,400.00 19,452,270.21
Co., Ltd.
Sichuan Zhiyijia Network Technology
45,787,014.55 823,292.70 46,610,307.25
Co., Ltd.
Total 65,622,381.39 5,509,596.07 5,069,400.00 66,062,577.46
252
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(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
3,030,603,503.85 2,834,190,544.57 3,102,350,117.09 2,860,557,418.34
business
Other
245,902,657.62 226,413,800.95 873,401,787.20 841,056,783.21
business
Total 3,276,506,161.47 3,060,604,345.52 3,975,751,904.29 3,701,614,201.55
(2) Main business - Classified according to product
Current Period Last Period
Product
Operation income Operation cost Operation income Operation cost
Refrigerator,
2,609,364,481.40 2,442,998,402.01 2,809,476,859.57 2,589,201,634.89
freezer
air conditioner 4,106,663.74 3,945,682.66 5,383,616.16 5,234,264.84
Washing
302,517,846.03 283,311,449.87 232,248,515.69 216,526,918.33
machine
Small
household
appliances and 114,614,512.68 103,935,010.03 55,241,125.67 49,594,600.28
kitchen and
bathroom
Total 3,030,603,503.85 2,834,190,544.57 3,102,350,117.09 2,860,557,418.34
(3) Main business - Classified according to region
Current Period Last Period
Region
Operation income Operation cost Operation income Operation cost
Domestic 2,085,203,000.95 1,955,621,293.70 1,756,300,378.04 1,652,622,816.92
Overseas 945,400,502.90 878,569,250.87 1,346,049,739.05 1,207,934,601.42
Total 3,030,603,503.85 2,834,190,544.57 3,102,350,117.09 2,860,557,418.34
Top five clients in sales revenue amounted as 1,844,332,092.65 yuan, a 56.29% in total operation
income.
5. Investment income
Item Current Period Last Period
Long-term equity investment income by equity method 5,509,596.07 -15,045,065.49
Investment income obtained from disposal of trading financial
1,530,699.78 46,948,848.62
assets
Income from financial products 2,754,190.61
Long-term equity investment income by cost method 36,720,000.00 2,754,000.00
253
Annotations of Financial Statements of ChangHong Meiling Co., Ltd.
From 1 January 2022 to 30 June 2022
(Unless other wise specified, RMB for record in the Statement)
Item Current Period Last Period
Investment income of other non-current financial assets during
76,200.80
holding period
The termination of income recognition for financial assets
-1,663,033.71
measured by amortized cost
Interest income from debt investment during the holding period 5,356,708.33
Total 47,530,171.27 37,411,973.74
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 2022.
254
CHANGHONG MEILING CO., LTD SEMI-ANNUAL REPORT 2022
XIX. 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 8,358,775.10
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
41,343,694.48
national 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,
13,172,916.65
trading 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
714,463.58
separate impairment test
Other non-operating income and expenses other than the above 577,926.96
Subtotal 64,167,776.77
Less: impact on income tax 6,327,022.61
Impact on minority shareholders’ equity (post-tax) 1,573,023.82
Total 56,267,730.34 —
2. Return on equity and earnings per share
Earnings per share/EPS
Weighted average
Profit during the report period (RMB/Share)
return on equity
Basic EPS Diluted EPS
Net profit attributable to ordinary
shareholders of the parent company
1.24% 0.0582 0.0582
Net profit attributable to ordinary
shareholders of the parent company after 0.09% 0.0040 0.0040
deduction of the non-recurring gains/losses
Chairman: Wu Dinggang
Changhong Meiling Co., Ltd.
18 August 2022
255
